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

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-4707

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

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

Eric D. Roiter, Secretary

82 Devonshire St.

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

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

Date of fiscal year end:	August 31

Date of reporting period:	February 28, 2007

Item 1. Reports to Stockholders

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

Intermediate Bond

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

Semiannual Report

February 28, 2007

(2_fidelity_logos) (Registered_Trademark)

Notes to Shareholders	<Click Here>	An explanation of the changes to the fund.
Chairman's Message	<Click Here>	Ned Johnson's message to shareholders.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.

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

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

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

All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.

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

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

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Notes to Shareholders:

As discussed in prior shareholder reports, the fund changed its investment approach in the way it invests in the investment-grade debt market, seeking exposure to various types of securities by investing in central funds as well as investing directly in individual investment-grade securities. Central funds are Fidelity mutual funds used by this fund and other Fidelity funds as an investment vehicle to gain pooled exposure to a particular core market sector, such as corporate bonds or mortgage-backed securities. Instead of multiple funds each investing in investment-grade debt securities individually, they can now take advantage of consolidating investments in a single, larger pool of investment-grade debt by investing directly in central funds. Shares of the central funds are offered only to other Fidelity mutual funds and accounts; investors cannot directly invest in them.

It's important to point out that investing in central funds does not impact the fund's investment objective or risk profile, only the mechanics of how we manage its investment portfolio. The portfolio managers continue to be responsible for choosing appropriate investments for their funds, whether they elect to purchase shares of a central fund or individual securities. Fidelity does not charge any additional management fees for central funds.

Investing in central funds does change the way this report presents the fund's holdings. The Investments section continues to list direct investments of the fund, including each central fund. However, many of the individual investment-grade debt securities previously held by the fund were transferred to the central funds, so they are no longer directly held and thus not listed. Information on the underlying holdings of the fixed-income central funds is available at advisor.fidelity.com, and the financial statements are available upon request.

Semiannual Report

Chairman's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

Substantial single-day losses are not uncommon in the equity markets, and when they occur - as in late February - investors can be better served in the long term by buying good stocks at lower prices than by moving their money to the sidelines. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.

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

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

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

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

Sincerely,

/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Semiannual Report

Shareholder Expense Example

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

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (September 1, 2006 to February 28, 2007).

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. 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. 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.

Semiannual Report

Shareholder Expense Example - continued

	Beginning Account Value September 1, 2006	Ending Account Value February 28, 2007	Expenses Paid During Period* September 1, 2006 to February 28, 2007
Class A
Actual	$ 1,000.00	$ 1,030.60	$ 3.78**
Hypothetical^A	$ 1,000.00	$ 1,021.08	$ 3.76**
Class T
Actual	$ 1,000.00	$ 1,030.20	$ 4.18
Hypothetical^A	$ 1,000.00	$ 1,020.68	$ 4.16
Class B
Actual	$ 1,000.00	$ 1,026.60	$ 7.69
Hypothetical^A	$ 1,000.00	$ 1,017.21	$ 7.65
Class C
Actual	$ 1,000.00	$ 1,026.30	$ 8.09
Hypothetical^A	$ 1,000.00	$ 1,016.81	$ 8.05
Institutional Class
Actual	$ 1,000.00	$ 1,031.50	$ 2.82
Hypothetical^A	$ 1,000.00	$ 1,022.02	$ 2.81

^A 5% return per year before expenses

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

	Annualized Expense Ratio
Class A	.75%**
Class T	.83%
Class B	1.53%
Class C	1.61%
Institutional Class	.56%

** If fees and changes to voluntary expense limitations, effective April 1, 2007 had been in effect during the period, the annualized expense ratio would have been .85% and the expenses paid in the actual and hypothetical examples above would have been $4.28 and $4.26, respectively.

Semiannual Report

Investment Changes

The information in the following tables is based on the combined investments of the fund and its pro-rata share of its investments of each Fidelity Central Fund.

Quality Diversification (% of fund's net assets)
As of February 28, 2007		As of August 31, 2006
	U.S. Government and U.S. Government Agency Obligations 37.8%		U.S. Government and U.S. Government Agency Obligations 41.3%
	AAA 18.9%		AAA 13.9%
	AA 7.0%		AA 4.7%
	A 9.4%		A 10.3%
	BBB 19.9%		BBB 22.2%
	BB and Below 3.5%		BB and Below 3.1%
	Not Rated 1.0%		Not Rated 1.2%
	Short-Term Investments and Net Other Assets 2.5%		Short-Term Investments and Net Other Assets 3.3%

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

Average Years to Maturity as of February 28, 2007
		6 months ago
Years	4.2	4.2

Average years to maturity is based on the average time remaining until principal payments are expected from each of the fund's bonds, weighted by dollar amount.

Duration as of February 28, 2007
		6 months ago
Years	3.5	3.4

Duration shows how much a bond fund's price fluctuates with changes in comparable interest rates. If rates rise 1%, for example, a fund with a five-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example.

Asset Allocation (% of fund's net assets)
As of February 28, 2007*			As of August 31, 2006**
	Corporate Bonds 29.4%			Corporate Bonds 30.2%
	U.S. Government and U.S. Government Agency Obligations 37.8%			U.S. Government and U.S. Government Agency Obligations 41.3%
	Asset-Backed Securities 13.8%			Asset-Backed Securities 11.3%
	CMOs and Other Mortgage Related Securities 15.7%			CMOs and Other Mortgage Related Securities 13.4%
	Other Investments 0.8%			Other Investments 0.5%
	Short-Term Investments and Net Other Assets 2.5%			Short-Term Investments and Net Other Assets 3.3%
* Foreign investments		9.6%	** Foreign investments		9.6%
* Futures and Swaps		16.6%	** Futures and Swaps		19.3%

For an unaudited list of holdings for each Fidelity Fixed-Income Central Fund, visit advisor.fidelity.com. The reports are located just after the Fund's financial statements and quarterly reports.

Semiannual Report

Investments February 28, 2007 (Unaudited)

Showing Percentage of Net Assets

Nonconvertible Bonds - 1.6%
	Principal Amount		Value
CONSUMER DISCRETIONARY - 0.1%
Media - 0.1%
Univision Communications, Inc. 3.875% 10/15/08	$ 1,680,000		$ 1,623,300
ENERGY - 0.2%
Oil, Gas & Consumable Fuels - 0.2%
Gazstream SA 5.625% 7/22/13 (c)	2,425,935		2,419,870
Transcontinental Gas Pipe Line Corp. 6.4% 4/15/16	1,180,000		1,194,750
			3,614,620
FINANCIALS - 0.3%
Insurance - 0.2%
Pennsylvania Mutual Life Insurance Co. 6.65% 6/15/34 (c)	3,000,000		3,264,363
Real Estate Management & Development - 0.1%
Realogy Corp. 6.5% 10/15/16 (c)	1,770,000		1,852,217
TOTAL FINANCIALS			5,116,580
INDUSTRIALS - 0.4%
Aerospace & Defense - 0.1%
Bombardier, Inc. 6.3% 5/1/14 (c)	1,575,000		1,508,063
Airlines - 0.3%
American Airlines, Inc. pass thru trust certificates 7.324% 4/15/11	500,000		507,500
United Airlines pass thru trust certificates:
7.032% 4/1/12	1,040,410		1,056,016
7.186% 10/1/12	2,581,582		2,625,159
			4,188,675
TOTAL INDUSTRIALS			5,696,738
TELECOMMUNICATION SERVICES - 0.1%
Diversified Telecommunication Services - 0.1%
British Telecommunications PLC 8.875% 12/15/30	775,000		1,089,522
UTILITIES - 0.5%
Electric Utilities - 0.3%
Commonwealth Edison Co. 5.4% 12/15/11	842,000		842,837
Nevada Power Co. 6.5% 5/15/18	3,950,000		4,099,705
			4,942,542
Nonconvertible Bonds - continued
	Principal Amount		Value
UTILITIES - continued
Independent Power Producers & Energy Traders - 0.1%
TXU Corp. 5.55% 11/15/14	$ 1,645,000		$ 1,501,227
Multi-Utilities - 0.1%
TECO Energy, Inc. 7% 5/1/12	1,500,000		1,575,000
TOTAL UTILITIES			8,018,769
TOTAL NONCONVERTIBLE BONDS (Cost $24,759,132)		25,159,529
U.S. Government and Government Agency Obligations - 21.8%

U.S. Government Agency Obligations - 5.3%
Fannie Mae:
4.375% 7/17/13	4,850,000		4,710,742
5% 2/16/12	18,000,000		18,133,578
Federal Home Loan Bank 5.375% 8/19/11	10,035,000		10,258,369
Freddie Mac:
5.25% 7/18/11	24,105,000		24,510,808
5.25% 11/5/12	1,405,000		1,400,845
5.75% 1/15/12	24,318,000		25,280,044
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS			84,294,386
U.S. Treasury Inflation Protected Obligations - 6.1%
U.S. Treasury Inflation-Indexed Notes:
0.875% 4/15/10	29,824,480		28,696,724
2% 1/15/14	41,717,838		41,241,839
2% 7/15/14	27,833,520		27,516,005
TOTAL U.S. TREASURY INFLATION PROTECTED OBLIGATIONS			97,454,568
U.S. Treasury Obligations - 10.4%
U.S. Treasury Notes:
4.75% 1/31/12 (d)	31,859,000		32,186,150
4.75% 5/15/14 (b)	132,695,000		134,415,915
TOTAL U.S. TREASURY OBLIGATIONS			166,602,065
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $350,664,106)		348,351,019
U.S. Government Agency - Mortgage Securities - 9.2%
	Principal Amount		Value
Fannie Mae - 6.0%
3.735% 10/1/33 (h)	$ 183,321		$ 180,812
3.75% 9/1/33 (h)	767,929		757,877
3.75% 1/1/34 (h)	167,739		165,237
3.759% 10/1/33 (h)	168,863		166,678
3.787% 6/1/34 (h)	792,826		777,858
3.824% 4/1/33 (h)	505,920		504,506
3.85% 10/1/33 (h)	4,270,020		4,225,851
3.943% 5/1/33 (h)	55,389		54,829
3.986% 2/1/35 (h)	143,011		142,275
3.998% 10/1/18 (h)	118,919		117,758
4% 8/1/18	3,041,384		2,881,168
4.014% 1/1/35 (h)	78,971		79,391
4.05% 2/1/35 (h)	132,581		132,146
4.065% 4/1/33 (h)	52,662		52,492
4.07% 2/1/35 (h)	85,017		85,245
4.076% 2/1/35 (h)	241,684		240,283
4.079% 2/1/35 (h)	80,829		80,471
4.102% 1/1/35 (h)	267,721		266,914
4.116% 2/1/35 (h)	321,087		320,394
4.126% 2/1/35 (h)	236,309		237,449
4.137% 1/1/35 (h)	480,762		479,151
4.175% 1/1/35 (h)	363,950		357,908
4.25% 2/1/35 (h)	182,190		179,379
4.258% 1/1/34 (h)	477,087		473,047
4.279% 3/1/35 (h)	159,100		158,868
4.281% 10/1/33 (h)	73,026		72,534
4.283% 8/1/33 (h)	313,596		312,092
4.292% 3/1/33 (h)	194,995		195,099
4.307% 3/1/33 (h)	84,756		83,396
4.317% 6/1/33 (h)	95,782		95,791
4.345% 5/1/35 (h)	190,424		189,434
4.347% 1/1/35 (h)	196,353		193,721
4.355% 4/1/35 (h)	94,287		93,651
4.364% 2/1/34 (h)	359,609		357,098
4.402% 2/1/35 (h)	268,608		264,976
4.416% 5/1/35 (h)	488,277		487,464
4.419% 12/1/33 (h)	7,495,291		7,397,807
4.421% 5/1/35 (h)	118,301		117,558
4.429% 3/1/35 (h)	248,836		245,569
4.448% 8/1/34 (h)	501,568		498,434
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount		Value
Fannie Mae - continued
4.481% 2/1/35 (h)	$ 141,917		$ 141,509
4.485% 3/1/35 (h)	539,878		533,596
4.5% 8/1/33 to 3/1/35	1,485,294		1,403,495
4.507% 2/1/35 (h)	956,113		957,263
4.508% 3/1/35 (h)	538,698		532,682
4.515% 2/1/35 (h)	2,628,164		2,615,625
4.515% 10/1/35 (h)	88,418		88,055
4.526% 1/1/35 (h)	206,927		206,484
4.531% 2/1/35 (h)	98,169		98,560
4.536% 7/1/35 (h)	580,723		578,596
4.568% 7/1/35 (h)	676,963		675,616
4.575% 2/1/35 (h)	480,385		475,847
4.578% 2/1/35 (h)	1,709,548		1,693,184
4.594% 11/1/34 (h)	490,860		487,031
4.6% 7/1/34 (h)	6,100,373		6,104,772
4.648% 3/1/35 (h)	1,180,469		1,180,424
4.662% 11/1/34 (h)	588,315		584,815
4.687% 3/1/35 (h)	70,913		70,922
4.715% 10/1/34 (h)	608,418		605,364
4.727% 7/1/34 (h)	467,449		465,764
4.743% 12/1/34 (h)	410,977		408,684
4.746% 5/1/33 (h)	8,992		9,040
4.782% 12/1/34 (h)	158,266		157,419
4.804% 6/1/35 (h)	778,110		777,223
4.809% 8/1/34 (h)	155,716		156,340
4.81% 2/1/33 (h)	238,404		239,445
4.813% 11/1/34 (h)	485,887		483,836
4.847% 7/1/36 (h)	1,071,375		1,069,732
4.859% 10/1/34 (h)	1,920,226		1,915,084
4.896% 10/1/35 (h)	360,874		361,124
4.95% 8/1/34 (h)	1,642,569		1,641,874
4.988% 2/1/35 (h)	56,058		55,935
5.064% 7/1/34 (h)	74,369		74,365
5.07% 5/1/35 (h)	983,495		985,549
5.071% 9/1/34 (h)	1,427,988		1,429,203
5.088% 9/1/34 (h)	158,530		158,690
5.135% 1/1/36 (h)	1,400,994		1,403,862
5.158% 5/1/35 (h)	1,737,286		1,738,135
5.168% 5/1/35 (h)	635,375		635,396
5.172% 8/1/33 (h)	229,872		230,724
5.176% 3/1/35 (h)	84,915		84,960
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount		Value
Fannie Mae - continued
5.178% 6/1/35 (h)	$ 714,221		$ 715,938
5.2% 5/1/35 (h)	1,824,324		1,826,634
5.218% 4/1/36 (h)	2,467,619		2,477,354
5.266% 11/1/36 (h)	652,651		655,710
5.285% 7/1/35 (h)	86,860		87,142
5.327% 12/1/34 (h)	247,996		249,014
5.401% 2/1/36 (h)	250,259		251,423
5.492% 2/1/36 (h)	3,000,366		3,022,701
5.5% 9/1/10 to 9/1/24	4,599,291		4,607,937
5.537% 11/1/36 (h)	1,331,403		1,340,505
5.616% 1/1/36 (h)	879,627		888,002
5.837% 3/1/36 (h)	2,006,374		2,029,983
5.855% 1/1/36 (h)	638,984		648,062
6% 5/1/16 to 4/1/17	962,922		979,268
6.5% 12/1/13 to 3/1/35	12,029,018		12,321,956
6.632% 9/1/36 (h)	2,705,638		2,755,868
7% 2/1/09 to 6/1/33	2,390,503		2,475,458
7.5% 8/1/17 to 9/1/28	743,543		774,045
8.5% 6/1/11 to 9/1/25	125,544		134,329
9.5% 2/1/25	21,993		23,869
10.5% 8/1/20	20,710		23,769
11% 8/1/15	128,872		135,918
12.5% 12/1/13 to 4/1/15	13,255		15,372
TOTAL FANNIE MAE			95,679,092
Freddie Mac - 0.7%
4.078% 1/1/35 (h)	647,245		642,239
4.16% 1/1/34 (h)	2,050,301		2,024,139
4.278% 3/1/35 (h)	209,660		208,412
4.279% 5/1/35 (h)	347,371		344,937
4.297% 12/1/34 (h)	246,667		242,480
4.321% 2/1/35 (h)	459,323		457,566
4.342% 3/1/35 (h)	380,615		374,223
4.38% 2/1/35 (h)	458,359		450,863
4.422% 6/1/35 (h)	318,570		316,324
4.426% 2/1/34 (h)	204,982		203,097
4.431% 3/1/35 (h)	233,078		229,194
4.452% 3/1/35 (h)	258,117		254,240
4.544% 2/1/35 (h)	416,431		410,664
4.772% 3/1/33 (h)	88,101		89,059
4.994% 4/1/35 (h)	1,110,331		1,109,909
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount		Value
Freddie Mac - continued
5.122% 4/1/35 (h)	$ 1,106,858		$ 1,103,614
5.291% 6/1/35 (h)	746,908		746,644
5.55% 1/1/36 (h)	1,423,167		1,428,889
8.5% 9/1/24 to 8/1/27	91,509		99,169
10% 5/1/09	2,126		2,167
10.5% 5/1/21	20,077		20,873
11% 12/1/11	1,416		1,501
11.5% 10/1/15	6,421		7,275
11.75% 10/1/10	8,079		8,740
TOTAL FREDDIE MAC			10,776,218
Government National Mortgage Association - 2.5%
4.25% 7/20/34 (h)	610,411		604,962
6.5% 3/1/37 (d)	38,000,000		38,987,924
7% 7/15/28 to 11/15/28	598,841		624,798
7.5% 2/15/28 to 10/15/28	11,060		11,600
8% 6/15/07 to 10/15/24	9,859		10,341
8.5% 4/15/17 to 10/15/21	107,958		117,310
11% 7/20/19 to 8/20/19	7,496		8,706
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION			40,365,641
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES (Cost $146,767,496)		146,820,951
Asset-Backed Securities - 2.8%

ACE Securities Corp. Series 2004-HE1:
Class M1, 5.82% 2/25/34 (h)	497,420		498,339
Class M2, 6.42% 2/25/34 (h)	600,000		604,742
Advanta Business Card Master Trust Series 2007-D1 Class D, 6.72% 1/22/13 (c)(h)	1,420,000		1,420,000
Aircraft Lease Securitization Ltd. Series 2005-1 Class C1, 9.07% 9/9/30 (c)(h)	375,593		381,227
American Express Credit Account Master Trust Series 2004-1 Class B, 5.57% 9/15/11 (h)	1,430,000		1,435,167
AmeriCredit Automobile Receivables Trust Series 2006-1 Class E1, 6.62% 5/6/13 (c)	1,335,000		1,327,284
Bank One Issuance Trust:
Series 2002-B1 Class B1, 5.7% 12/15/09 (h)	1,290,000		1,290,465
Series 2002-C1 Class C1, 6.28% 12/15/09 (h)	1,840,000		1,841,690
Asset-Backed Securities - continued
	Principal Amount		Value
Bear Stearns Asset Backed Securities, Inc. Series 2005-HE2:
Class M1, 5.82% 2/25/35 (h)	$ 1,555,000		$ 1,562,295
Class M2, 6.07% 2/25/35 (h)	570,000		574,563
Capital Auto Receivables Asset Trust Series 2006-SN1A:
Class B, 5.5% 4/20/10 (c)	245,000		246,158
Class C, 5.77% 5/20/10 (c)	235,000		237,294
Class D, 6.15% 4/20/11 (c)	400,000		405,869
Capital One Master Trust Series 2001-1 Class B, 5.83% 12/15/10 (h)	2,130,000		2,136,261
Carrington Mortgage Loan Trust Series 2006-NC3 Class M10, 7.32% 8/25/36 (c)(h)	215,000		185,303
Countrywide Home Loans, Inc.:
Series 2004-2 Class M1, 5.82% 5/25/34 (h)	1,770,000		1,775,624
Series 2004-3 Class M1, 5.82% 6/25/34 (h)	350,000		351,404
DB Master Finance LLC Series 2006-1 Class M1, 8.285% 6/20/31 (c)	715,000		732,754
First Franklin Mortgage Loan Trust Series 2004-FF2:
Class M3, 5.87% 3/25/34 (h)	100,000		100,096
Class M4, 6.22% 3/25/34 (h)	75,000		75,152
Ford Credit Auto Owner Trust:
Series 2006-B Class D, 7.26% 2/15/13 (c)	850,000		857,595
Series 2006-C Class D, 6.89% 5/15/13 (c)	585,000		589,596
Fremont Home Loan Trust:
Series 2004-A Class M1, 5.87% 1/25/34 (h)	1,100,000		1,100,550
Series 2005-A:
Class M2, 5.78% 1/25/35 (h)	550,000		552,429
Class M3, 5.81% 1/25/35 (h)	300,000		301,550
Class M4, 6% 1/25/35 (h)	225,000		226,451
GS Auto Loan Trust Series 2006-1 Class D, 6.25% 1/15/14 (c)	1,030,000		1,022,965
GSAMP Trust Series 2004-FM2:
Class M1, 5.82% 1/25/34 (h)	749,050		749,050
Class M2, 6.42% 1/25/34 (h)	140,773		140,773
Class M3, 6.62% 1/25/34 (h)	83,136		83,136
Home Equity Asset Trust:
Series 2003-2 Class M1, 6.64% 8/25/33 (h)	634,210		634,720
Series 2004-3 Class M2, 6.52% 8/25/34 (h)	535,000		539,486
HSBC Home Equity Loan Trust Series 2005-2:
Class M1, 5.78% 1/20/35 (h)	328,388		328,860
Class M2, 5.81% 1/20/35 (h)	246,873		247,719
Long Beach Mortgage Loan Trust:
Series 2003-3 Class M1, 6.07% 7/25/33 (h)	2,441,358		2,447,961
Asset-Backed Securities - continued
	Principal Amount		Value
Long Beach Mortgage Loan Trust: - continued
Series 2006-7 Class M11, 7.82% 8/25/36 (h)	$ 1,000,000		$ 744,939
MBNA Credit Card Master Note Trust Series 2003-B2 Class B2, 5.71% 10/15/10 (h)	350,000		351,409
Meritage Mortgage Loan Trust Series 2004-1:
Class M1, 5.82% 7/25/34 (h)	471,554		474,581
Class M2, 5.87% 7/25/34 (h)	100,000		100,226
Morgan Stanley ABS Capital I, Inc.:
Series 2002-HE3 Class M1, 6.42% 12/27/32 (h)	460,000		460,632
Series 2003-NC8 Class M1, 6.02% 9/25/33 (h)	664,956		665,768
Morgan Stanley Dean Witter Capital I Trust:
Series 2001-NC4 Class M1, 6.82% 1/25/32 (h)	348,003		348,348
Series 2002-NC1 Class M1, 6.52% 2/25/32 (c)(h)	706,794		707,287
Series 2002-NC3 Class M1, 6.4% 8/25/32 (h)	375,000		375,262
NovaStar Home Equity Loan Series 2004-1:
Class M1, 5.77% 6/25/34 (h)	350,000		351,616
Class M4, 6.295% 6/25/34 (h)	585,000		588,251
Onyx Acceptance Owner Trust Series 2005-B Class A4, 4.34% 5/15/12	1,045,000		1,031,817
Ownit Mortgage Loan Asset-Backed Certificates Series 2005-3 Class A2A, 5.44% 6/25/36 (h)	826,851		826,953
SLM Private Credit Student Loan Trust Series 2004-A Class C, 6.31% 6/15/33 (h)	1,190,000		1,203,769
Structured Asset Securities Corp. Series 2006-BC1 Class B1, 7.82% 3/25/36 (c)(h)	700,000		431,900
Superior Wholesale Inventory Financing Trust VII Series 2003-A8 Class CTFS, 5.77% 3/15/11 (c)(h)	2,320,000		2,320,000
Superior Wholesale Inventory Financing Trust XII Series 2005-A12:
Class B, 5.8% 6/15/10 (h)	1,425,000		1,427,148
Class C, 6.52% 6/15/10 (h)	710,000		716,833
Wachovia Auto Loan Trust Series 2006-2A Class E, 7.05% 5/20/14 (c)	955,000		965,972
WaMu Master Note Trust Series 2006-C2A Class C2, 5.82% 8/15/15 (c)(h)	2,630,000		2,630,000
Washington Mutual Asset-Backed Certificates Series 2006-HE5 Class B1, 7.82% 10/25/36 (c)(h)	825,000		722,620
TOTAL ASSET-BACKED SECURITIES (Cost $44,536,643)		44,449,859
Collateralized Mortgage Obligations - 3.6%
	Principal Amount		Value
Private Sponsor - 0.9%
Banc of America Mortgage Securities, Inc.:
Series 2003-K Class 1A1, 6.0303% 12/25/33 (h)	$ 168,563		$ 170,089
Series 2004-B Class 1A1, 3.5013% 3/25/34 (h)	357,268		358,686
Series 2004-C Class 1A1, 3.3242% 4/25/34 (h)	887,458		906,624
Credit Suisse First Boston Adjustable Rate Mortgage Trust floater Series 2005-2 Class 6A2, 5.6% 6/25/35 (h)	171,317		171,602
Credit Suisse First Boston Mortgage Securities Corp. floater:
Series 2004-AR3 Class 6A2, 5.69% 4/25/34 (h)	75,856		75,875
Series 2004-AR6 Class 9A2, 5.69% 10/25/34 (h)	224,571		224,918
Granite Master Issuer PLC floater Series 2006-1A Class C2, 5.96% 12/20/54 (c)(h)	1,200,000		1,200,000
Merrill Lynch Mortgage Investors, Inc.:
floater Series 2005-B Class A2, 5.5988% 7/25/30 (h)	608,175		609,086
Series 2003-E Class XA1, 1% 10/25/28 (h)(j)	5,299,053		19,899
Opteum Mortgage Acceptance Corp. floater Series 2005-3 Class APT, 5.61% 7/25/35 (h)	886,838		888,693
Residential Finance LP/Residential Finance Development Corp. floater:
Series 2003-B:
Class B4, 7.07% 7/10/35 (c)(h)	1,680,638		1,705,848
Class B5, 7.67% 7/10/35 (c)(h)	1,587,269		1,589,750
Class B6, 8.17% 7/10/35 (c)(h)	746,950		764,130
Series 2003-CB1:
Class B3, 6.77% 6/10/35 (c)(h)	783,319		795,069
Class B4, 6.97% 6/10/35 (c)(h)	699,392		713,380
Class B5, 7.57% 6/10/35 (c)(h)	475,587		485,098
Class B6, 8.07% 6/10/35 (c)(h)	284,419		292,383
Series 2004-B:
Class B4, 6.42% 2/10/36 (c)(h)	287,103		291,697
Class B5, 6.87% 2/10/36 (c)(h)	287,103		290,692
Class B6, 7.32% 2/10/36 (c)(h)	95,701		97,137
Series 2004-C:
Class B4, 6.27% 9/10/36 (c)(h)	386,101		391,893
Class B5, 6.67% 9/10/36 (c)(h)	482,627		487,453
Class B6, 7.07% 9/10/36 (c)(h)	96,525		97,491
Residential Funding Securities Corp. Series 2003-RP2 Class A1, 4% 6/25/33 (c)(h)	484,908		487,313
Collateralized Mortgage Obligations - continued
	Principal Amount		Value
Private Sponsor - continued
Sequoia Mortgage Trust floater Series 2004-8 Class A2, 5.755% 9/20/34 (h)	$ 522,939		$ 523,851
Structured Asset Securities Corp. floater Series 2006-BC5 Class B, 7.82% 12/25/36 (h)	650,000		552,003
TOTAL PRIVATE SPONSOR			14,190,660
U.S. Government Agency - 2.7%
Fannie Mae planned amortization class Series 2003-39 Class PV, 5.5% 9/25/22	3,045,000		3,063,444
Fannie Mae Grantor Trust floater Series 2005-90 Class FG, 5.57% 10/25/35 (h)	5,207,654		5,215,802
Fannie Mae guaranteed REMIC pass thru certificates:
planned amortization class:
Series 2003-84 Class GC, 4.5% 5/25/15	1,540,000		1,523,877
Series 2005-67 Class HD, 5.5% 12/25/30	2,835,000		2,861,918
Series 2006-4 Class PB, 6% 9/25/35	2,955,000		3,020,127
sequential payer:
Series 2002-56 Class MC, 5.5% 9/25/17	924,228		932,510
Series 2004-3 Class BA, 4% 7/25/17	150,500		146,253
Series 2004-45 Class AV, 4.5% 10/25/22	1,355,000		1,340,885
Series 2004-86 Class KC, 4.5% 5/25/19	658,902		646,373
Series 2004-91 Class AH, 4.5% 5/25/29	1,374,472		1,347,300
Freddie Mac planned amortization class:
Series 2104 Class PG, 6% 12/15/28	1,442,730		1,480,649
Series 2356 Class GD, 6% 9/15/16	1,018,858		1,042,723
Series 3033 Class UD, 5.5% 10/15/30	1,075,000		1,086,192
Freddie Mac Multi-class participation certificates guaranteed:
planned amortization class:
Series 2363 Class PF, 6% 9/15/16	1,387,689		1,419,268
Series 2702 Class WB, 5% 4/15/17	2,480,000		2,486,131
Series 2952 Class EC, 5.5% 11/15/28	2,785,000		2,812,640
Series 3018 Class UD, 5.5% 9/15/30	1,735,000		1,753,963
Series 3049 Class DB, 5.5% 6/15/31	2,495,000		2,521,539
sequential payer:
Series 2777 Class AB, 4.5% 6/15/29	3,127,243		3,066,815
Series 2809 Class UA, 4% 12/15/14	787,344		773,937
Series 3117 Class PC, 5% 6/15/31	4,000,000		3,977,311
TOTAL U.S. GOVERNMENT AGENCY			42,519,657
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $56,122,612)		56,710,317
Commercial Mortgage Securities - 1.9%
	Principal Amount		Value
Banc of America Large Loan, Inc.:
floater:
Series 2003-BBA2:
Class H, 6.72% 11/15/15 (c)(h)	$ 265,000		$ 264,999
Class J, 7.27% 11/15/15 (c)(h)	275,000		274,892
Class K, 7.92% 11/15/15 (c)(h)	245,000		244,754
Series 2005-ESHA:
Class E, 5.9% 7/14/20 (c)(h)	725,000		725,771
Class F, 6.07% 7/14/20 (c)(h)	435,000		435,462
Class G, 6.2% 7/14/20 (c)(h)	215,000		215,228
Class H, 6.42% 7/14/20 (c)(h)	290,000		290,307
Series 2005-MIB1:
Class C, 5.63% 3/15/22 (c)(h)	335,000		335,245
Class D, 5.68% 3/15/22 (c)(h)	340,000		340,253
Class F, 5.79% 3/15/22 (c)(h)	330,000		330,255
Class G, 5.85% 3/15/22 (c)(h)	215,000		215,166
Series 2006-ESH:
Class A, 6.18% 7/14/11 (c)(h)	731,304		731,397
Class B, 6.28% 7/14/11 (c)(h)	364,678		364,484
Class C, 6.43% 7/14/11 (c)(h)	730,330		730,422
Class D, 7.061% 7/14/11 (c)(h)	424,462		424,751
Bayview Commercial Asset Trust floater:
Series 2004-1:
Class A, 5.68% 4/25/34 (c)(h)	1,036,656		1,038,600
Class B, 7.22% 4/25/34 (c)(h)	109,122		109,906
Class M1, 5.88% 4/25/34 (c)(h)	109,122		109,446
Class M2, 6.52% 4/25/34 (c)(h)	54,561		55,038
Series 2004-2 Class A, 5.75% 8/25/34 (c)(h)	1,034,552		1,038,108
Series 2004-3:
Class A1, 5.69% 1/25/35 (c)(h)	1,161,909		1,164,995
Class A2, 5.74% 1/25/35 (c)(h)	170,869		171,350
Class M1, 5.82% 1/25/35 (c)(h)	205,043		205,780
Class M2, 6.32% 1/25/35 (c)(h)	136,695		137,870
Series 2005-4A:
Class A2, 5.71% 1/25/36 (c)(h)	1,735,379		1,741,345
Class B1, 6.72% 1/25/36 (c)(h)	91,336		91,593
Class M1, 5.77% 1/25/36 (c)(h)	548,015		550,583
Class M2, 5.79% 1/25/36 (c)(h)	182,672		183,528
Commercial Mortgage Securities - continued
	Principal Amount		Value
Bayview Commercial Asset Trust floater - continued
Series 2005-4A:
Class M3, 5.82% 1/25/36 (c)(h)	$ 274,007		$ 275,420
Class M4, 5.93% 1/25/36 (c)(h)	91,336		91,864
Class M5, 5.97% 1/25/36 (c)(h)	91,336		91,864
Class M6, 6.02% 1/25/36 (c)(h)	91,336		91,807
Bear Stearns Commercial Mortgage Securities, Inc. Series 2003-T12 Class X2, 0.6532% 8/13/39 (c)(h)(j)	6,003,816		99,995
Citigroup/Deutsche Bank Commercial Mortgage Trust sequential payer Series 2006-CD3 Class A3, 5.607% 10/15/48	3,000,000		3,061,992
COMM floater Series 2002-FL7 Class D, 5.89% 11/15/14 (c)(h)	137,143		137,478
Commercial Mortgage pass thru certificates floater Series 2005-FL11:
Class B, 5.57% 11/15/17 (c)(h)	569,670		569,813
Class E, 5.71% 11/15/17 (c)(h)	255,770		255,907
Class F, 5.77% 11/15/17 (c)(h)	232,518		232,636
DL J Commercial Mortgage Corp. sequential pay Series 1999-CG1 Class A1B, 6.46% 3/10/32	4,020,000		4,100,518
Ginnie Mae guaranteed Multi-family pass thru securities sequential payer Series 2002-35 Class C, 5.8867% 10/16/23 (h)	244,146		247,857
Ginnie Mae guaranteed REMIC pass thru securities:
sequential pay Series 2003-59 Class D, 3.654% 10/16/27	3,060,000		2,896,693
sequential payer Series 2003-47 Class C, 4.227% 10/16/27	2,856,041		2,792,047
GMAC Commercial Mortgage Securities, Inc. Series 2004-C3 Class X2, 0.6945% 12/10/41 (h)(j)	12,147,495		262,596
Lehman Brothers Floating Rate Commercial Mortgage Trust floater Series 2003-LLFA:
Class J, 7.37% 12/16/14 (c)(h)	1,480,000		1,479,918
Class K1, 7.87% 12/16/14 (c)(h)	770,000		769,807
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $30,153,946)		29,979,740
Fixed-Income Funds - 61.2%
	Shares		Value
Fidelity 1-3 Year Duration Securitized Bond Central Fund (i)	1,211,460		$ 120,806,755
Fidelity 2-5 Year Duration Securitized Bond Central Fund (i)	1,569,334		157,419,893
Fidelity Corporate Bond 1-10 Year Central Fund (i)	4,248,746		430,100,507
Fidelity Corporate Bond 1-5 Year Central Fund (i)	300,000		30,234,000
Fidelity Specialized High Income Central Fund (i)	150,068		15,294,931
Fidelity Ultra-Short Central Fund (i)	2,249,749		223,467,558
TOTAL FIXED-INCOME FUNDS (Cost $974,385,462)		977,323,644
Cash Equivalents - 10.7%
	Maturity Amount
Investments in repurchase agreements in a joint trading account at 5.34%, dated 2/28/07 due 3/1/07:
(Collateralized by U.S. Government Obligations) #	$ 32,674,842		32,670,000
(Collateralized by U.S. Government Obligations) # (a)	138,137,487		138,117,000
TOTAL CASH EQUIVALENTS (Cost $170,787,000)		170,787,000
TOTAL INVESTMENT PORTFOLIO - 112.8% (Cost $1,798,176,397)			1,799,582,059
NET OTHER ASSETS - (12.8)%			(203,959,825)
NET ASSETS - 100%		$ 1,595,622,234

Swap Agreements
	Expiration Date	Notional Amount
Credit Default Swaps
Receive monthly notional amount multiplied by 3.05% and pay Merrill Lynch upon default event of Morgan Stanley ABS Capital I, Inc., par value of the proportional notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-NC8, Class B3, 8.45% 9/25/34	Oct. 2034	$ 400,000	(22,690)
Swap Agreements - continued
	Expiration Date	Notional Amount	Value
Credit Default Swaps - continued
Receive monthly notional amount multiplied by 3.35% and pay Morgan Stanley, Inc. upon default event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-HE7 Class B3, 8.85% 8/25/34	Sept. 2034	$ 409,000	$ (11,984)
Receive monthly notional amount multiplied by 3.35% and pay Morgan Stanley, Inc. upon default event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-NC7, Class B3, 8.85% 7/25/34	August 2034	409,000	(12,665)
Recieve monthly notional amount multiplied by 3.35% and pay Morgan Stanley, Inc. upon default event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-HE8 Class B3, 7.3913% 9/25/34	Oct. 2034	409,000	(15,002)
Receive monthly notional amount multiplied by 2.5% and pay Credit Suisse First Boston upon default event of Ameriquest Mortgage Securities, Inc., par value of the notional amount of Ameriquest Mortgage Securities, Inc. Series 2004-R11 Class M9, 8.03% 11/25/34	Dec. 2034	625,000	(47,707)
Receive monthly notional amount multiplied by .52% and pay Bank of America upon default event of Ameriquest Mortgage Securities, Inc., par value of the notional amount of Ameriquest Mortgage Securities, Inc. Series 2004-R8 Class M6, 6.835% 9/25/34	Oct. 2034	1,900,000	(32,247)
Receive monthly notional amount multiplied by .8% and pay Deutsche Bank upon default event of Park Place Securities, Inc., par value of the notional amount of Park Place Securities, Inc. Series 2005-WCH1 Class M6, 6.365% 1/25/35	Feb. 2035	600,000	(15,582)
Swap Agreements - continued
	Expiration Date	Notional Amount	Value
Credit Default Swaps - continued
Receive monthly notional amount multiplied by .82% and pay UBS upon default event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-NC6 Class M3, 5.6413% 7/25/34	August 2034	$ 409,000	$ (2,572)
Receive monthly notional amount multiplied by .85% and pay Deutsche Bank upon default event of Park Place Securities, Inc., par value of the notional amount of Park Place Securities, Inc. Series 2005-WHQ2 Class M6, 6.105% 5/25/35	June 2035	600,000	(14,887)
Receive monthly notional amount multiplied by .85% and pay UBS upon default event of Ameriquest Mortgage Securities, Inc., par value of the notional amount of Ameriquest Mortgage Securities, Inc. Series 2004-R9 Class M5, 5.5913% 10/25/34	Nov. 2034	409,000	(5,582)
Receive monthly notional amount multiplied by .85% and pay UBS upon default event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-NC8 Class M6, 5.4413% 9/25/34	Oct. 2034	409,000	(4,599)
Receive monthly notional amount multiplied by 1.6% and pay Morgan Stanley, Inc. upon default event of Park Place Securities, Inc., par value of the notional amount of Park Place Securities, Inc. Series 2005-WHQ2 Class M7, 5.4413% 5/25/35	June 2035	370,000	(14,876)
Receive monthly notional amount multiplied by 1.66% and pay Morgan Stanley, Inc. upon default event of Park Place Securities, Inc., par value of the notional amount of Park Place Securities, Inc. Series 2005-WHQ2 Class M7, 5.4413% 5/25/35	June 2035	409,000	(15,892)
Swap Agreements - continued
	Expiration Date	Notional Amount	Value
Credit Default Swaps - continued
Receive monthly notional amount multiplied by 2% and pay Goldman Sachs upon default event of Long Beach Mortgage Loan Trust, par value of the notional amount of Long Beach Mortgage Loan Trust Series 2006-7 Class M9, 7.14% 8/25/36	Sept. 2036	$ 1,000,000	$ (213,363)
Receive monthly notional amount multiplied by 2.54% and pay Merrill Lynch upon default event of Countrywide Home Loans, Inc., par value of the notional amount of Countrywide Home Loans, Inc. Series 2003-BC1 Class B1, 7.6913% 3/25/32	April 2032	41,954	(319)
Receive monthly notional amount multiplied by 2.61% and pay Goldman Sachs upon default event of Fremont Home Loan Trust, par value of the notional amount of Fremont Home Loan Trust Series 2004-1 Class M9, 7.3913% 2/25/34	March 2034	115,173	(2,750)
Receive monthly notional amount multiplied by 2.61% and pay Goldman Sachs upon default event of Fremont Home Loan Trust, par value of the notional amount of Fremont Home Loan Trust Series 2004-A Class B3, 7.0413% 1/25/34	Feb. 2034	64,084	(823)
Receive monthly notional amount multiplied by 2.7% and pay Merrill Lynch, Inc. upon default event of Park Place Securities, Inc., par value of the notional amount of Park Place Securities, Inc. Series 2005-WHQ2 Class M9, 6.4606% 5/25/35	June 2035	2,410,000	(258,328)
Receive monthly notional amount multiplied by 3% and pay UBS upon default event of Ameriquest Mortgage Securities, Inc., par value of the notional amount of Ameriquest Mortgage Securities, Inc. Series 2005-R4 Class M9, 7.07% 7/25/35	August 2035	700,000	(30,076)
Receive monthly notional amount multiplied by 5% and pay Deutsche Bank upon default event of MASTR Asset Backed Securities Trust, par value of the notional amount of MASTR Asset Backed Securities Trust Series 2003-NC1 Class M6, 8.1913% 4/25/33	May 2033	409,000	(2,506)
Swap Agreements - continued
	Expiration Date	Notional Amount	Value
Credit Default Swaps - continued
Receive monthly notional amount multiplied by 5.55% and pay Deutsche Bank upon default event of Carrington Mortgage Loan Trust, par value of the notional amount of Carrington Mortgage Loan Trust Series 2006-FRE1 Class M10, 7.74% 7/25/36	August 2036	$ 700,000	$ (32,380)
Receive monthly notional amount multiplied by 6.25% and pay Deutsche Bank upon default event of Ramp Ser 2006-RS5 Trust, par value of the notional amount of Ramp Ser 2006-RS5 Trust 7.17% 9/25/36	Oct. 2036	700,000	(77,560)
Receive quarterly a fixed rate of .4% multiplied by the notional amount and pay to Merrill Lynch, Inc., upon each default event of one of the issues of Dow Jones CDX N.A. Investment Grade 4 Index, par value of the proportional notional amount (f)	June 2010	10,000,000	62,891
Receive quarterly a fixed rate of .45% multiplied by the notional amount and pay to Goldman Sachs, upon each default event of one of the issues of Dow Jones CDX N.A. Investment Grade 5 Index, par value of the proportional notional amount (g)	Dec. 2010	15,000,000	127,937
Receive quarterly a fixed rate of .5% multiplied by the notional amount and pay to Merrill Lynch, Inc., upon each default event of one of the issues of Dow Jones CDX N.A. Investment Grade 3 Index, par value of the proportional notional amount (e)	March 2010	6,373,600	71,596
TOTAL CREDIT DEFAULT SWAPS		44,871,811	(571,966)
Interest Rate Swaps
Receive quarterly a fixed rate equal to 4.3875% and pay quarterly a floating rate based on 3-month LIBOR with Credit Suisse First Boston	March 2010	6,425,000	(112,910)
Receive semi-annually a fixed rate equal to 4.795% and pay quarterly a floating rate based on 3-month LIBOR with Lehman Brothers, Inc.	Dec. 2011	15,000,000	(134,588)
Swap Agreements - continued
	Expiration Date	Notional Amount	Value
Interest Rate Swaps - continued
Receive semi-annually a fixed rate equal to 5.022% and pay quarterly a floating rate based on 3-month LIBOR with Lehman Brothers, Inc.	Nov. 2011	$ 20,000,000	$ 291,446
Receive semi-annually a fixed rate equal to 5.095% and pay quarterly a floating rate based on 3-month LIBOR with Bank of America	Feb. 2012	30,000,000	153,465
Receive semi-annually a fixed rate equal to 5.145% and pay quarterly a floating rate based on 3-month LIBOR with Credit Suisse First Boston	Feb. 2012	60,000,000	433,410
Receive semi-annually a fixed rate equal to 5.186% and pay quarterly a floating rate based on 3-month LIBOR with JPMorgan Chase, Inc.	Sept. 2011	15,000,000	317,428
Receive semi-annually a fixed rate equal to 5.3315% and pay quarterly a floating rate based on 3-month LIBOR with JPMorgan Chase, Inc.	April 2011	15,000,000	400,938
TOTAL INTEREST RATE SWAPS		161,425,000	1,349,189
		$ 206,296,811	$ 777,223

Legend

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

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

(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $50,535,708 or 3.2% of net assets.

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

(e) Dow Jones CDX N.A. Investment Grade 3 is a tradable index of credit default swaps on investment grade debt of U.S. companies.

(f) Dow Jones CDX N.A. Investment Grade 4 is a tradable index of credit default swaps on investment grade debt of U.S. companies.

(g) Dow Jones CDX N.A. Investment Grade 5 is a tradable index of credit default swaps on investment grade debt of U.S. companies.

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

(i) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited list of holdings for each Fidelity Central Fund, as of the Investing Fund's report date, is available upon request or at advisor.fidelity.com. The reports are located just after the Investing Fund's financial statements and quarterly reports but are not part of the financial statements or quarterly reports. In addition, each Fidelity Central Fund's financial statements are available on the EDGAR Database on the SEC's web site, www.sec.gov, or upon request.

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

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

Repurchase Agreement / Counterparty	Value
$32,670,000 due 3/01/07 at 5.34%
ABN AMRO Bank N.V., New York Branch	$ 1,356,859
BNP Paribas Securities Corp.	1,334,244
Banc of America Securities LLC	3,022,637
Bank of America, NA	4,522,863
Barclays Capital, Inc.	7,960,239
Bear Stearns & Co., Inc.	904,572
Citigroup Global Markets, Inc.	904,572
Countrywide Securities Corp.	4,522,862
Goldman, Sachs & Co.	452,286
Societe Generale, New York Branch	1,356,859
UBS Securities LLC	6,332,007
	$ 32,670,000
$138,117,000 due 3/01/07 at 5.34%
Banc of America Securities LLC	$ 138,117,000

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
Fidelity 1-3 Year Duration Securitized Bond Central Fund	$ 2,266,302
Fidelity 2-5 Year Duration Securitized Bond Central Fund	2,519,374
Fidelity Corporate Bond 1-10 Year Central Fund	7,312,713
Fidelity Corporate Bond 1-5 Year Central Fund	497,609
Fidelity Specialized High Income Central Fund	513,272
Fidelity Ultra-Short Central Fund	6,424,881
Total	$ 19,534,151

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

Fund	Value, beginning of period	Purchases	Sales Proceeds	Value, end of period	% ownership, end of period
Fidelity 1-3 Year Duration Securitized Bond Central Fund	$ -	$ 121,130,852*	$ -	$ 120,806,755	5.0%
Fidelity 2-5 Year Duration Securitized Bond Central Fund	-	156,875,539*	-	157,419,893	4.7%
Fidelity Corporate Bond 1-10 Year Central Fund	-	424,874,550*	-	430,100,507	6.2%
Fidelity Corporate Bond 1-5 Year Central Fund	-	30,000,000*	-	30,234,000	2.3%
Fidelity Specialized High Income Central Fund	14,777,196	-	-	15,294,931	7.1%
Fidelity Ultra-Short Central Fund	218,844,967	54,998,510	50,005,018	223,467,558	1.6%
Total	$ 233,622,163	$ 787,879,451	$ 50,005,018	$ 977,323,644

* Includes the value of shares received through in-kind contributions. See Note 6 of the Notes to Financial Statements.

Income Tax Information

At August 31, 2006, the fund had a capital loss carryforward of approximately $8,297,852 all of which will expire on August 31, 2014.

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

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

	February 28, 2007 (Unaudited)

Assets
Investment in securities, at value (including securities loaned of $134,415,915 and repurchase agreements of $170,787,000) - See accompanying schedule: Unaffiliated issuers (cost $823,790,935)	$ 822,258,415
Fidelity Central Funds (cost $974,385,462)	977,323,644
Total Investments (cost $1,798,176,397)		$ 1,799,582,059
Cash		501
Receivable for investments sold		252,383
Receivable for swap agreements		20,422
Receivable for fund shares sold		4,586,215
Interest receivable		4,196,855
Distributions receivable from Fidelity Central Funds		4,109,661
Swap agreements, at value		777,223
Prepaid expenses		6,060
Total assets		1,813,531,379

Liabilities
Payable for investments purchased Regular delivery	$ 4,999,462
Delayed delivery	71,180,496
Payable for fund shares redeemed	2,314,103
Distributions payable	293,238
Accrued management fee	414,204
Distribution fees payable	218,995
Other affiliated payables	299,297
Other payables and accrued expenses	72,350
Collateral on securities loaned, at value	138,117,000
Total liabilities		217,909,145

Net Assets		$ 1,595,622,234
Net Assets consist of:
Paid in capital		$ 1,603,192,769
Undistributed net investment income		2,436,483
Accumulated undistributed net realized gain (loss) on investments		(12,278,858)
Net unrealized appreciation (depreciation) on investments		2,271,840
Net Assets		$ 1,595,622,234

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

Semiannual Report

Statement of Assets and Liabilities - continued

	February 28, 2007 (Unaudited)

Calculation of Maximum Offering Price Class A: Net Asset Value and redemption price per share ($242,941,259 ÷ 22,326,084 shares)		$ 10.88

Maximum offering price per share (100/96.25 of $10.88)		$ 11.30
Class T: Net Asset Value and redemption price per share ($539,155,889 ÷ 49,524,301 shares)		$ 10.89

Maximum offering price per share (100/97.25 of $10.89)		$ 11.20
Class B: Net Asset Value and offering price per share ($33,912,021 ÷ 3,119,235 shares)^A		$ 10.87

Class C: Net Asset Value and offering price per share ($62,115,030 ÷ 5,718,306 shares)^A		$ 10.86

Institutional Class: Net Asset Value, offering price and redemption price per share ($717,498,035 ÷ 65,803,383 shares)		$ 10.90

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

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

Semiannual Report

Financial Statements - continued

Statement of Operations

	Six months ended February 28, 2007 (Unaudited)

Investment Income
Interest		$ 18,249,556
Income from Fidelity Central Funds		19,534,151
Total income		37,783,707

Expenses
Management fee	$ 2,435,660
Transfer agent fees	1,529,194
Distribution fees	1,365,014
Accounting and security lending fees	271,188
Custodian fees and expenses	27,156
Independent trustees' compensation	2,581
Registration fees	56,136
Audit	46,444
Legal	4,817
Miscellaneous	5,908
Total expenses before reductions	5,744,098
Expense reductions	(30,920)	5,713,178
Net investment income		32,070,529
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers	(3,048,453)
Fidelity Central Funds	231,138
Swap agreements	(1,933,805)
Capital gain distributions from Fidelity Central Funds	31,496
Total net realized gain (loss)		(4,719,624)
Change in net unrealized appreciation (depreciation) on: Investment securities:
Unaffiliated issuers	11,349,659
Fidelity Central Funds	5,654,888
Swap agreements	2,074,823
Total change in net unrealized appreciation (depreciation)		19,079,370
Net gain (loss)		14,359,746
Net increase (decrease) in net assets resulting from operations		$ 46,430,275

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

Semiannual Report

Statement of Changes in Net Assets

	Six months ended February 28, 2007 (Unaudited)	Ten months ended August 31, 2006*	Year ended October 31, 2005
Increase (Decrease) in Net Assets
Operations
Net investment income	$ 32,070,529	$ 52,322,457	$ 48,634,982
Net realized gain (loss)	(4,719,624)	(10,023,592)	7,895,285
Change in net unrealized appreciation (depreciation)	19,079,370	4,063,334	(50,939,491)
Net increase (decrease) in net assets resulting from operations	46,430,275	46,362,199	5,590,776
Distributions to shareholders from net investment income	(31,973,801)	(51,890,296)	(46,348,627)
Distributions to shareholders from net realized gain	-	(6,729,699)	(17,912,078)
Total distributions	(31,973,801)	(58,619,995)	(64,260,705)
Share transactions - net increase (decrease)	95,639,165	43,358,947	165,772,627
Total increase (decrease) in net assets	110,095,639	31,101,151	107,102,698

Net Assets
Beginning of period	1,485,526,595	1,454,425,444	1,347,322,746
End of period (including undistributed net investment income of $2,436,483, $2,339,755 and $5,771,423, respectively)	$ 1,595,622,234	$ 1,485,526,595	$ 1,454,425,444

* The fund changed its fiscal year end from October 31 to August 31, effective August 31, 2006.

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

Semiannual Report

Financial Highlights - Class A

	Six months ended February 28, 2007	Year ended August 31,
	(Unaudited)	2006^H	2005^L	2004^L	2003^L	2002^L	2001^L
Selected Per-Share Data
Net asset value, beginning of period	$ 10.78	$ 10.87	$ 11.34	$ 11.32	$ 11.06	$ 11.01	$ 10.30
Income from Investment Operations
Net investment income^E	.228	.385	.397	.385	.420	.521^K	.619
Net realized and unrealized gain (loss)	.099	(.043)	(.338)	.120	.254	.055^K	.713
Total from investment operations	.327	.342	.059	.505	.674	.576	1.332
Distributions from net investment income	(.227)	(.382)	(.379)	(.385)	(.414)	(.526)	(.622)
Distributions from net realized gain	-	(.050)	(.150)	(.100)	-	-	-
Total distributions	(.227)	(.432)	(.529)	(.485)	(.414)	(.526)	(.622)
Net asset value, end of period	$ 10.88	$ 10.78	$ 10.87	$ 11.34	$ 11.32	$ 11.06	$ 11.01
Total Return^{B, C, D}	3.06%	3.23%	.54%	4.58%	6.16%	5.44%	13.28%
Ratios to Average Net Assets^{F, I}
Expenses before reductions	.75%^A	.75%^A	.81%	.84%	.81%	.83%	.83%
Expenses net of fee waivers, if any	.75%^A	.75%^A	.81%	.84%	.81%	.83%	.83%
Expenses net of all reductions	.74%^A	.74%^A	.80%	.84%	.81%	.82%	.82%
Net investment income	4.24%^A	4.30%^A	3.60%	3.42%	3.72%	4.82%^K	5.82%
Supplemental Data
Net assets, end of period (000 omitted)	$ 242,941	$ 229,490	$ 219,441	$ 186,748	$ 166,701	$ 133,236	$ 92,027
Portfolio turnover rate^G	97%^{A, J}	43%^A	73%	96%	108%	121%	112%

^A Annualized ^B Total returns for periods of less than one year are not annualized. ^C Total returns would have been lower had certain expenses not been reduced during the periods shown. ^D Total returns do not include the effect of the sales charges. ^E Calculated based on average shares outstanding during the period. ^F Fees and expenses of the 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. ^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. ^H For the ten month period ended August 31. The Fund changed its fiscal year from October 31 to August 31, effective August 31, 2006. ^I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. ^J Portfolio turnover rate excludes securities received or delivered in-kind. ^K Effective November 1, 2001, the Fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities. Per-share data and ratios for periods prior to adoption have not been restated to reflect this change. ^L For the period ended October 31.

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

Semiannual Report

Financial Highlights - Class T

	Six months ended February 28, 2007	Year ended August 31,
	(Unaudited)	2006^H	2005^L	2004^L	2003^L	2002^L	2001^L
Selected Per-Share Data
Net asset value, beginning of period	$ 10.79	$ 10.88	$ 11.35	$ 11.32	$ 11.06	$ 11.02	$ 10.31
Income from Investment Operations
Net investment income^E	.223	.377	.386	.374	.408	.508^K	.603
Net realized and unrealized gain (loss)	.100	(.043)	(.338)	.130	.253	.044^K	.713
Total from investment operations	.323	.334	.048	.504	.661	.552	1.316
Distributions from net investment income	(.223)	(.374)	(.368)	(.374)	(.401)	(.512)	(.606)
Distributions from net realized gain	-	(.050)	(.150)	(.100)	-	-	-
Total distributions	(.223)	(.424)	(.518)	(.474)	(.401)	(.512)	(.606)
Net asset value, end of period	$ 10.89	$ 10.79	$ 10.88	$ 11.35	$ 11.32	$ 11.06	$ 11.02
Total Return^{B, C, D}	3.02%	3.15%	.43%	4.56%	6.03%	5.21%	13.11%
Ratios to Average Net Assets^{F, I}
Expenses before reductions	.83%^A	.84%^A	.91%	.95%	.93%	.95%	.97%
Expenses net of fee waivers, if any	.83%^A	.84%^A	.91%	.95%	.93%	.95%	.97%
Expenses net of all reductions	.83%^A	.83%^A	.91%	.95%	.93%	.95%	.97%
Net investment income	4.16%^A	4.21%^A	3.49%	3.32%	3.60%	4.70%^K	5.67%
Supplemental Data
Net assets, end of period (000 omitted)	$ 539,156	$ 563,677	$ 622,245	$ 680,947	$ 711,263	$ 684,618	$ 546,276
Portfolio turnover rate^G	97%^{A, J}	43%^A	73%	96%	108%	121%	112%

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

Semiannual Report

Financial Highlights - Class B

	Six months ended February 28, 2007	Year ended August 31,
	(Unaudited)	2006^H	2005^L	2004^L	2003^L	2002^L	2001^L
Selected Per-Share Data
Net asset value, beginning of period	$ 10.77	$ 10.86	$ 11.33	$ 11.31	$ 11.05	$ 11.01	$ 10.30
Income from Investment Operations
Net investment income^E	.186	.316	.310	.295	.331	.436^K	.534
Net realized and unrealized gain (loss)	.099	(.043)	(.338)	.120	.253	.044^K	.713
Total from investment operations	.285	.273	(.028)	.415	.584	.480	1.247
Distributions from net investment income	(.185)	(.313)	(.292)	(.295)	(.324)	(.440)	(.537)
Distributions from net realized gain	-	(.050)	(.150)	(.100)	-	-	-
Total distributions	(.185)	(.363)	(.442)	(.395)	(.324)	(.440)	(.537)
Net asset value, end of period	$ 10.87	$ 10.77	$ 10.86	$ 11.33	$ 11.31	$ 11.05	$ 11.01
Total Return^{B, C, D}	2.66%	2.57%	(.25)%	3.75%	5.32%	4.52%	12.40%
Ratios to Average Net Assets^{F, I}
Expenses before reductions	1.53%^A	1.52%^A	1.61%	1.66%	1.60%	1.61%	1.62%
Expenses net of fee waivers, if any	1.53%^A	1.52%^A	1.60%	1.65%	1.60%	1.61%	1.62%
Expenses net of all reductions	1.53%^A	1.52%^A	1.60%	1.65%	1.60%	1.61%	1.62%
Net investment income	3.45%^A	3.52%^A	2.80%	2.62%	2.92%	4.03%^K	5.02%
Supplemental Data
Net assets, end of period (000 omitted)	$ 33,912	$ 46,344	$ 73,017	$ 118,751	$ 154,697	$ 178,062	$ 113,424
Portfolio turnover rate^G	97%^{A, J}	43%^A	73%	96%	108%	121%	112%

^A Annualized ^B Total returns for periods of less than one year are not annualized. ^C Total returns would have been lower had certain expenses not been reduced during the periods shown. ^D Total returns do not include the effect of the contingent deferred sales charge. ^E Calculated based on average shares outstanding during the period. ^F Fees and expenses of the 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. ^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. ^H For the ten month period ended August 31. The Fund changed its fiscal year from October 31 to August 31, effective August 31, 2006. ^I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. ^J Portfolio turnover rate excludes securities received or delivered in-kind. ^K Effective November 1, 2001, the Fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities. Per-share data and ratios for periods prior to adoption have not been restated to reflect this change. ^L For the period ended October 31.

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

Semiannual Report

Financial Highlights - Class C

	Six months ended February 28, 2007	Year ended August 31,
	(Unaudited)	2006^H	2005^L	2004^L	2003^L	2002^L	2001^L
Selected Per-Share Data
Net asset value, beginning of period	$ 10.76	$ 10.85	$ 11.32	$ 11.30	$ 11.04	$ 11.00	$ 10.29
Income from Investment Operations
Net investment income^E	.181	.308	.301	.289	.322	.428^K	.525
Net realized and unrealized gain (loss)	.100	(.042)	(.337)	.120	.254	.044^K	.716
Total from investment operations	.281	.266	(.036)	.409	.576	.472	1.241
Distributions from net investment income	(.181)	(.306)	(.284)	(.289)	(.316)	(.432)	(.531)
Distributions from net realized gain	-	(.050)	(.150)	(.100)	-	-	-
Total distributions	(.181)	(.356)	(.434)	(.389)	(.316)	(.432)	(.531)
Net asset value, end of period	$ 10.86	$ 10.76	$ 10.85	$ 11.32	$ 11.30	$ 11.04	$ 11.00
Total Return^{B, C, D}	2.63%	2.51%	(.33)%	3.70%	5.26%	4.45%	12.34%
Ratios to Average Net Assets^{F, I}
Expenses before reductions	1.61%^A	1.60%^A	1.67%	1.70%	1.67%	1.68%	1.69%
Expenses net of fee waivers, if any	1.61%^A	1.60%^A	1.67%	1.70%	1.67%	1.68%	1.69%
Expenses net of all reductions	1.60%^A	1.60%^A	1.67%	1.70%	1.67%	1.68%	1.69%
Net investment income	3.39%^A	3.45%^A	2.73%	2.57%	2.86%	3.96%^K	4.96%
Supplemental Data
Net assets, end of period (000 omitted)	$ 62,115	$ 63,946	$ 74,522	$ 91,149	$ 113,849	$ 98,158	$ 63,538
Portfolio turnover rate^G	97%^{A, J}	43%^A	73%	96%	108%	121%	112%

^A Annualized ^B Total returns for periods of less than one year are not annualized. ^C Total returns would have been lower had certain expenses not been reduced during the periods shown. ^D Total returns do not include the effect of the contingent deferred sales charge. ^E Calculated based on average shares outstanding during the period. ^F Fees and expenses of the 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. ^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. ^H For the ten month period ended August 31. The Fund changed its fiscal year from October 31 to August 31, effective August 31, 2006. ^I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. ^J Portfolio turnover rate excludes securities received or delivered in-kind. ^K Effective November 1, 2001, the Fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities. Per-share data and ratios for periods prior to adoption have not been restated to reflect this change. ^L For the period ended October 31.

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

Semiannual Report

Financial Highlights - Institutional Class

	Six months ended February 28, 2007	Year ended August 31,
	(Unaudited)	2006^G	2005^K	2004^K	2003^K	2002^K	2001^K
Selected Per-Share Data
Net asset value, beginning of period	$ 10.80	$ 10.89	$ 11.36	$ 11.34	$ 11.08	$ 11.03	$ 10.32
Income from Investment Operations
Net investment income^D	.237	.401	.417	.400	.437	.539^J	.638
Net realized and unrealized gain (loss)	.100	(.043)	(.339)	.122	.254	.053^J	.711
Total from investment operations	.337	.358	.078	.522	.691	.592	1.349
Distributions from net investment income	(.237)	(.398)	(.398)	(.402)	(.431)	(.542)	(.639)
Distributions from net realized gain	-	(.050)	(.150)	(.100)	-	-	-
Total distributions	(.237)	(.448)	(.548)	(.502)	(.431)	(.542)	(.639)
Net asset value, end of period	$ 10.90	$ 10.80	$ 10.89	$ 11.36	$ 11.34	$ 11.08	$ 11.03
Total Return^{B, C}	3.15%	3.37%	.71%	4.72%	6.30%	5.59%	13.45%
Ratios to Average Net Assets^{E, H}
Expenses before reductions	.56%^A	.57%^A	.63%	.70%	.66%	.67%	.66%
Expenses net of fee waivers, if any	.56%^A	.57%^A	.63%	.70%	.66%	.67%	.66%
Expenses net of all reductions	.56%^A	.57%^A	.63%	.70%	.66%	.67%	.66%
Net investment income	4.42%^A	4.48%^A	3.77%	3.57%	3.87%	4.97%^J	5.98%
Supplemental Data
Net assets, end of period (000 omitted)	$ 717,498	$ 582,070	$ 465,201	$ 269,727	$ 155,302	$ 114,546	$ 91,168
Portfolio turnover rate^F	97%^{A, I}	43%^A	73%	96%	108%	121%	112%

^A Annualized ^B Total returns for periods of less than one year are not annualized. ^C Total returns would have been lower had certain expenses not been reduced during the periods shown. ^D Calculated based on average shares outstanding during the period. ^E Fees and expenses of the 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. ^F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. ^G For the ten month period ended August 31. The Fund changed its fiscal year from October 31 to August 31, effective August 31, 2006. ^H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. ^I Portfolio turnover rate excludes securities received or delivered in-kind. ^J Effective November 1, 2001, the Fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities. Per-share data and ratios for periods prior to adoption have not been restated to reflect this change. ^K For the period ended October 31.

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

Semiannual Report

Notes to Financial Statements

For the period ended February 28, 2007 (Unaudited)

1. Organization.

Fidelity Advisor Intermediate Bond Fund (the Fund) is a fund of Fidelity Advisor Series II (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of four years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements.

2. Investments in Fidelity Central Funds.

The Fund may invest in Fidelity Central Funds which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds 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. A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or for the Fixed-Income Central Funds, at advisor.fidelity.com. The reports are located just after the Fund's financial statements and quarterly reports but are not part of the financial statements or quarterly reports. In addition, the financial statements of the Fidelity Central Funds, are available on the EDGAR Database on the SEC's web site, www.sec.gov, or upon request.

Based on their 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 following summarizes the Fund's investment in each Fidelity Central Fund.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

2. Investments in Fidelity Central Funds - continued

Fidelity Central Fund	Investment Manager	Investment Objective	Investment Practices
Fidelity 1-3 Year Duration Securitized Bond Central Fund	Fidelity Investment Money Management, Inc. (FIMM)	Seeks a high level of income by normally investing in investment-grade securitized debt securities and repurchase agreements for those securities.	Delayed Delivery & When Issued Securities Futures Repurchase Agreements Restricted Securities Swap Agreements
Fidelity 2-5 Year Duration Securitized Bond Central Fund	FIMM	Seeks a high level of income by normally investing in investment-grade securitized debt securities and repurchase agreements for those securities.	Delayed Delivery & When Issued Securities Repurchase Agreements Restricted Securities Swap Agreements
Fidelity Corporate Bond 1-5 Year Central Fund	FIMM	Seeks a high level of income by normally investing in investment-grade corporate bonds and other corporate debt securities and repurchase agreements for those securities.	Repurchase Agreements Restricted Securities Swap Agreements
Fidelity Corporate Bond 1-10 Year Central Fund	FIMM	Seeks a high level of income by normally investing in investment-grade corporate bonds and other corporate debt securities and repurchase agreements for those securities.	Repurchase Agreements Restricted Securities Swap Agreements
Fidelity Specialized High Income Central Fund	Fidelity Management & Research Company, Inc (FMRC)	Seeks a high level of current income by normally investing in income-producing debt securities, with an emphasis on lower-quality debt securities.	Delayed Delivery & When Issued Securities Loans & Direct Debt Instruments Repurchase Agreements Restricted Securities
Fidelity Ultra-Short Central Fund	FIMM	Seeks to obtain a high level of current income consistent with preservation of capital by investing in U.S. dollar denominated money market and investment-grade debt securities.	Delayed Delivery & When Issued Securities Futures Repurchase Agreements Restricted Securities Swap Agreements

Semiannual Report

3. Significant Accounting Policies.

The following summarizes the significant accounting policies of the Fund:

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

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Interest income and income and capital gain distributions from the Fidelity Central Funds are accrued as earned, with any distributions receivable as of period end included in Distributions receivable from Fidelity Central Funds on the Statement of Assets and Liabilities. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Inflation-indexed bonds are fixed-income securities whose principal value is periodically adjusted to the rate of inflation. Interest is accrued based on the principal value, which is adjusted for inflation. Any increase in the principal amount of an inflation-indexed bond is recorded as interest income, even though principal is not received until maturity.

Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

3. Significant Accounting Policies - continued

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

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

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

Book-tax differences are primarily due to swap agreements, prior period premium and discount on debt securities, market discount, partnerships (including allocations from Fidelity Central Funds, deferred trustees compensation, financing transactions, capital loss carryforwards and losses deferred due to wash sales.

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

Unrealized appreciation	$ 9,434,653
Unrealized depreciation	(7,854,249)
Net unrealized appreciation (depreciation)	$ 1,580,404
Cost for federal income tax purposes	$ 1,798,001,655

New Accounting Pronouncements. In July 2006, Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement 109 (FIN 48), was issued and is effective on the last business day of the semiannual reporting period for fiscal years beginning after December 15, 2006. FIN 48 sets forth a threshold for financial statement recognition, measurement and disclosure of a tax position taken or expected to be taken on a tax return. Management is currently evaluating the impact, if any, the adoption of FIN 48 will have on the Fund's net assets, results of operations and financial statement disclosures.

In addition, in September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosures.

Semiannual Report

4. Operating Policies.

Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (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. The Fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. 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.

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

Swap Agreements. The Fund may invest in swaps for the purpose of managing its exposure to interest rate, credit or market risk.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

4. Operating Policies - continued

Swap Agreements - continued

recorded in the accompanying Statement of Operations as realized gains or losses, respectively. The primary risk associated with interest rate swaps is that unfavorable changes in the fluctuation of interest rates could adversely impact a fund.

Credit default swaps involve the exchange of a fixed rate premium for protection against the loss in value of an underlying debt instrument in the event of a defined credit event (such as payment default or bankruptcy). Under the terms of the swap, one party acts as a "guarantor" receiving a periodic payment that is a fixed percentage applied to a notional principal amount. In return the party agrees to purchase the notional amount of the underlying instrument, at par, if a credit event occurs during the term of the swap. The Fund may enter into credit default swaps in which either it or its counterparty act as guarantors. By acting as the guarantor of a swap, a fund assumes the market and credit risk of the underlying instrument including liquidity and loss of value. Periodic payments and premiums received or made by the Fund are recorded in the accompanying Statement of Operations as realized gains or losses, respectively.

Swaps are marked-to-market daily based on dealer-supplied valuations and changes in value are recorded as unrealized appreciation (depreciation). Gains or losses are realized upon early termination of the swap agreement. Collateral, in the form of cash or securities, may be required to be held in segregated accounts with a fund's custodian in compliance with swap contracts. Risks may exceed amounts recognized on the Statement of Assets and Liabilities. These risks include changes in the returns of the underlying instruments, failure of the counterparties to perform under the contracts' terms and the possible lack of liquidity with respect to the swap agreements. Details of swap agreements open at period end are included in the Fund's Schedule of Investments under the caption "Swap Agreements."

Mortgage Dollar Rolls. To earn additional income, the Fund may employ trading strategies which involve the sale and simultaneous agreement to repurchase similar securities ("mortgage dollar rolls") or the purchase and simultaneous agreement to sell similar securities ("reverse mortgage dollar rolls"). The securities traded are mortgage securities and bear the same interest rate but may be collateralized by different pools of mortgages. During the period between the sale and repurchase in a mortgage dollar roll transaction, a fund will not be entitled to receive interest and principal payments on the securities sold but will invest the proceeds of the sale in other securities which may enhance the yield and total return. In addition, the difference between the sale price and the future purchase price is recorded as an adjustment to investment income. During the period between the purchase and subsequent sale in a reverse mortgage dollar roll transaction a fund is entitled to interest and principal payments on the securities

Semiannual Report

4. Operating Policies - continued

Mortgage Dollar Rolls - continued

purchased. The price differential between the purchase and sale is recorded as an adjustment to investment income. Losses may arise due to changes in the value of the securities or if the counterparty does not perform under the terms of the agreement. If the counterparty files for bankruptcy or becomes insolvent, a fund's right to repurchase or sell securities may be limited.

5. Purchases and Sales of Investments.

Purchases and sales of securities (including the Fixed-Income Central Funds), other than short-term securities, U.S. government securities and in-kind transactions, aggregated $197,524,141 and $98,533,945, respectively.

6. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .20% of the Fund's average net assets and a group fee rate that averaged ..12% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .32% of the Fund's average net assets.

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

	Distribution Fee	Service Fee	Paid to FDC	Retained by FDC
Class A	-%	.15%	$ 176,261	$ 6,338
Class T	-%	.25%	689,982	6,787
Class B	.65%	.25%	181,326	131,387
Class C	.75%	.25%	317,445	26,413
			$ 1,365,014	$ 170,925

On January 18, 2007, the Board of Trustees approved an increase in Class A's Service fee from .15% to .25%, effective April 1, 2007.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

6. Fees and Other Transactions with Affiliates - continued

Sales Load. FDC receives a front-end sales charge of up to 3.75% for selling Class A shares, and 2.75% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 3% to 1% for Class B, 1% for Class C, .75% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.

On January 18, 2007, the Board of Trustees approved a change in Class A's front-end sales charge. Effective April 1, 2007, FDC will receive a front-end sales charge of up to 2.75% for selling Class A shares.

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

	Retained by FDC
Class A	$ 21,248
Class T	6,953
Class B*	19,436
Class C*	1,937
	$ 49,574

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

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

	Amount	% of Average Net Assets*
Class A	$ 262,647	.23
Class T	553,349	.20
Class B	50,252	.25
Class C	70,038	.22
Institutional Class	592,908	.19
	$ 1,529,194

* Annualized

Semiannual Report

6. Fees and Other Transactions with Affiliates - continued

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

Exchange-In-Kind. During the period, the Fund exchanged securities for shares of four newly created Fidelity Fixed-Income Central Funds, all of which are affiliated investment companies managed by FIMM, an affiliate of FMR. The Fund delivered securities to each Fixed-Income Central Fund in exchange for shares of each respective Fixed-Income Central Fund, as presented in the accompanying table. Each exchange is considered a non-taxable exchange for federal income tax purposes, with no gain or loss recognized by the Fund or its shareholders.

Fidelity Fixed-Income Central Fund	Value of Securities Delivered (including accrued interest)	Unrealized Appreciation/ (Depreciation)	Shares of Fixed-Income Central Fund Exchanged
1-3 Year Duration Securitized Bond Central Fund	$ 72,681,098	$ (1,084,210)	726,811
2-5 Year Duration Securitized Bond Central Fund	135,346,599	(892,353)	1,353,466
Corporate Bond 1-5 Year Central Fund	30,000,000	-	300,000
Corporate Bond 1-10 Year Central Fund	424,874,550	(879,534)	4,248,746
Total	$ 662,902,247	$ (2,856,097)	6,629,023

7. Committed Line of Credit.

The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $1,896 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.

8. Security Lending.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

8. Security Lending - continued

securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is 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 fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of interest income. Net income from lending portfolio securities during the period amounted to $68,128.

9. Expense Reductions.

Through arrangements with the Fund's custodian and each class' transfer agent, 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 $5,361. During the period, credits reduced each class' transfer agent expense as noted in the table below.

	Transfer Agent expense reduction
Class A	$ 8,975
Class T	10,626
Class C	2,130
Institutional Class	2,750
	$ 24,481

10. Other.

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

Semiannual Report

10. Other - continued

During the period, the Fund's transfer agent, Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of Fidelity Management & Research Company, notified the Fund that the fund's books and records did not reflect a conversion of certain Class B to Class A shares upon their conversion date. Management has determined that this did not have a material impact to the Fund's reported net assets or results of operations in the accompanying financial statements. In March 2007, FIIOC converted the relevant Class B shares to Class A shares and recorded the conversion in the books and records of the Fund. FIIOC has reimbursed the Fund for related audit and legal expenses and is in the process of determining appropriate remediation to affected shareholder accounts.

11. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

	Six months ended February 28, 2007	Ten months ended August 31, 2006	Year ended October 31, 2005
From net investment income
Class A	$ 4,933,711	$ 8,237,954	$ 6,750,916
Class T	11,355,311	20,024,907	21,938,255
Class B	689,463	1,706,342	2,468,615
Class C	1,066,742	1,937,516	2,155,983
Institutional Class	13,928,574	19,983,577	13,034,858
Total	$ 31,973,801	$ 51,890,296	$ 46,348,627
From net realized gain
Class A	$ -	$ 1,020,134	$ 2,485,599
Class T	-	2,809,300	8,985,225
Class B	-	314,308	1,506,398
Class C	-	331,629	1,194,745
Institutional Class	-	2,254,328	3,740,111
Total	$ -	$ 6,729,699	$ 17,912,078

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

12. Share Transactions.

Transactions for each class of shares were as follows:

	Shares
	Six months ended February 28, 2007	Ten months ended August 31, 2006	Year ended October 31, 2005
Class A
Shares sold	4,657,314	8,278,094	8,880,810
Reinvestment of distributions	385,470	742,446	712,081
Shares redeemed	(4,004,732)	(7,918,238)	(5,873,872)
Net increase (decrease)	1,038,052	1,102,302	3,719,019
Class T
Shares sold	5,960,127	13,931,574	17,421,833
Reinvestment of distributions	987,758	2,015,582	2,664,683
Shares redeemed	(9,687,801)	(20,897,941)	(22,891,513)
Net increase (decrease)	(2,739,916)	(4,950,785)	(2,804,997)
Class B
Shares sold	238,749	671,993	796,684
Reinvestment of distributions	54,226	158,557	293,999
Shares redeemed	(1,476,795)	(3,250,226)	(4,848,523)
Net increase (decrease)	(1,183,820)	(2,419,676)	(3,757,840)
Class C
Shares sold	661,846	883,428	1,502,035
Reinvestment of distributions	82,603	176,528	254,887
Shares redeemed	(968,114)	(1,984,475)	(2,940,524)
Net increase (decrease)	(223,665)	(924,519)	(1,183,602)
Institutional Class
Shares sold	12,821,374	18,293,682	21,107,727
Reinvestment of distributions	1,252,833	2,006,280	1,430,815
Shares redeemed	(2,158,898)	(9,124,283)	(3,567,194)
Net increase (decrease)	11,915,309	11,175,679	18,971,348

Semiannual Report

12. Share Transactions - continued

	Dollars
	Six months ended February 28, 2007	Ten months ended August 31, 2006	Year ended October 31, 2005
Class A
Shares sold	$ 50,406,988	$ 88,900,621	$ 98,032,653
Reinvestment of distributions	4,178,203	7,978,925	7,878,261
Shares redeemed	(43,326,378)	(85,054,294)	(64,959,678)
Net increase (decrease)	$ 11,258,813	$ 11,825,252	$ 40,951,236
Class T
Shares sold	$ 64,528,901	$ 149,419,842	$ 192,781,788
Reinvestment of distributions	10,711,429	21,688,566	29,505,458
Shares redeemed	(104,940,694)	(224,614,505)	(253,165,506)
Net increase (decrease)	$ (29,700,364)	$ (53,506,097)	$ (30,878,260)
Class B
Shares sold	$ 2,578,014	$ 7,195,245	$ 8,809,947
Reinvestment of distributions	587,302	1,704,584	3,254,211
Shares redeemed	(15,959,454)	(34,885,370)	(53,542,026)
Net increase (decrease)	$ (12,794,138)	$ (25,985,541)	$ (41,477,868)
Class C
Shares sold	$ 7,150,381	$ 9,467,312	$ 16,597,884
Reinvestment of distributions	893,824	1,895,452	2,818,224
Shares redeemed	(10,457,286)	(21,287,935)	(32,438,326)
Net increase (decrease)	$ (2,413,081)	$ (9,925,171)	$ (13,022,218)
Institutional Class
Shares sold	$ 139,078,384	$ 197,223,981	$ 233,901,844
Reinvestment of distributions	13,607,193	21,595,701	15,843,665
Shares redeemed	(23,397,642)	(97,869,178)	(39,545,772)
Net increase (decrease)	$ 129,287,935	$ 120,950,504	$ 210,199,737

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

Fidelity Research & Analysis Company
(formerly Fidelity Management &
Research (Far East) Inc.)

Fidelity Investments Money
Management, Inc.

Fidelity Investments Japan Limited

Fidelity International
Investment Advisors

Fidelity International Investment
Advisors (U.K.) Limited

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc.

Boston, MA

Custodian

The Bank of New York

New York, NY

LTB-USAN-0407
1.784888.104

(Fidelity Investment logo)(registered trademark)

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

Intermediate Bond

Fund - Institutional Class

Semiannual Report

February 28, 2007

(2_fidelity_logos) (Registered_Trademark)

Notes to Shareholders	<Click Here>	An explanation of the changes to the fund.
Chairman's Message	<Click Here>	Ned Johnson's message to shareholders.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.

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

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

All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Notes to Shareholders:

Semiannual Report

Chairman's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

Sincerely,

/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Semiannual Report

Shareholder Expense Example

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (September 1, 2006 to February 28, 2007).

Actual Expenses

Hypothetical Example for Comparison Purposes

Semiannual Report

Shareholder Expense Example - continued

	Beginning Account Value September 1, 2006	Ending Account Value February 28, 2007	Expenses Paid During Period* September 1, 2006 to February 28, 2007
Class A
Actual	$ 1,000.00	$ 1,030.60	$ 3.78**
Hypothetical^A	$ 1,000.00	$ 1,021.08	$ 3.76**
Class T
Actual	$ 1,000.00	$ 1,030.20	$ 4.18
Hypothetical^A	$ 1,000.00	$ 1,020.68	$ 4.16
Class B
Actual	$ 1,000.00	$ 1,026.60	$ 7.69
Hypothetical^A	$ 1,000.00	$ 1,017.21	$ 7.65
Class C
Actual	$ 1,000.00	$ 1,026.30	$ 8.09
Hypothetical^A	$ 1,000.00	$ 1,016.81	$ 8.05
Institutional Class
Actual	$ 1,000.00	$ 1,031.50	$ 2.82
Hypothetical^A	$ 1,000.00	$ 1,022.02	$ 2.81

^A 5% return per year before expenses

	Annualized Expense Ratio
Class A	.75%**
Class T	.83%
Class B	1.53%
Class C	1.61%
Institutional Class	.56%

Semiannual Report

Investment Changes

The information in the following tables is based on the combined investments of the fund and its pro-rata share of its investments of each Fidelity Central Fund.

Quality Diversification (% of fund's net assets)
As of February 28, 2007		As of August 31, 2006
	U.S. Government and U.S. Government Agency Obligations 37.8%		U.S. Government and U.S. Government Agency Obligations 41.3%
	AAA 18.9%		AAA 13.9%
	AA 7.0%		AA 4.7%
	A 9.4%		A 10.3%
	BBB 19.9%		BBB 22.2%
	BB and Below 3.5%		BB and Below 3.1%
	Not Rated 1.0%		Not Rated 1.2%
	Short-Term Investments and Net Other Assets 2.5%		Short-Term Investments and Net Other Assets 3.3%

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

Average Years to Maturity as of February 28, 2007
		6 months ago
Years	4.2	4.2

Average years to maturity is based on the average time remaining until principal payments are expected from each of the fund's bonds, weighted by dollar amount.

Duration as of February 28, 2007
		6 months ago
Years	3.5	3.4

Asset Allocation (% of fund's net assets)
As of February 28, 2007*			As of August 31, 2006**
	Corporate Bonds 29.4%			Corporate Bonds 30.2%
	U.S. Government and U.S. Government Agency Obligations 37.8%			U.S. Government and U.S. Government Agency Obligations 41.3%
	Asset-Backed Securities 13.8%			Asset-Backed Securities 11.3%
	CMOs and Other Mortgage Related Securities 15.7%			CMOs and Other Mortgage Related Securities 13.4%
	Other Investments 0.8%			Other Investments 0.5%
	Short-Term Investments and Net Other Assets 2.5%			Short-Term Investments and Net Other Assets 3.3%
* Foreign investments		9.6%	** Foreign investments		9.6%
* Futures and Swaps		16.6%	** Futures and Swaps		19.3%

For an unaudited list of holdings for each Fidelity Fixed-Income Central Fund, visit advisor.fidelity.com. The reports are located just after the Fund's financial statements and quarterly reports.

Semiannual Report

Investments February 28, 2007 (Unaudited)

Showing Percentage of Net Assets

Nonconvertible Bonds - 1.6%
	Principal Amount		Value
CONSUMER DISCRETIONARY - 0.1%
Media - 0.1%
Univision Communications, Inc. 3.875% 10/15/08	$ 1,680,000		$ 1,623,300
ENERGY - 0.2%
Oil, Gas & Consumable Fuels - 0.2%
Gazstream SA 5.625% 7/22/13 (c)	2,425,935		2,419,870
Transcontinental Gas Pipe Line Corp. 6.4% 4/15/16	1,180,000		1,194,750
			3,614,620
FINANCIALS - 0.3%
Insurance - 0.2%
Pennsylvania Mutual Life Insurance Co. 6.65% 6/15/34 (c)	3,000,000		3,264,363
Real Estate Management & Development - 0.1%
Realogy Corp. 6.5% 10/15/16 (c)	1,770,000		1,852,217
TOTAL FINANCIALS			5,116,580
INDUSTRIALS - 0.4%
Aerospace & Defense - 0.1%
Bombardier, Inc. 6.3% 5/1/14 (c)	1,575,000		1,508,063
Airlines - 0.3%
American Airlines, Inc. pass thru trust certificates 7.324% 4/15/11	500,000		507,500
United Airlines pass thru trust certificates:
7.032% 4/1/12	1,040,410		1,056,016
7.186% 10/1/12	2,581,582		2,625,159
			4,188,675
TOTAL INDUSTRIALS			5,696,738
TELECOMMUNICATION SERVICES - 0.1%
Diversified Telecommunication Services - 0.1%
British Telecommunications PLC 8.875% 12/15/30	775,000		1,089,522
UTILITIES - 0.5%
Electric Utilities - 0.3%
Commonwealth Edison Co. 5.4% 12/15/11	842,000		842,837
Nevada Power Co. 6.5% 5/15/18	3,950,000		4,099,705
			4,942,542
Nonconvertible Bonds - continued
	Principal Amount		Value
UTILITIES - continued
Independent Power Producers & Energy Traders - 0.1%
TXU Corp. 5.55% 11/15/14	$ 1,645,000		$ 1,501,227
Multi-Utilities - 0.1%
TECO Energy, Inc. 7% 5/1/12	1,500,000		1,575,000
TOTAL UTILITIES			8,018,769
TOTAL NONCONVERTIBLE BONDS (Cost $24,759,132)		25,159,529
U.S. Government and Government Agency Obligations - 21.8%

U.S. Government Agency Obligations - 5.3%
Fannie Mae:
4.375% 7/17/13	4,850,000		4,710,742
5% 2/16/12	18,000,000		18,133,578
Federal Home Loan Bank 5.375% 8/19/11	10,035,000		10,258,369
Freddie Mac:
5.25% 7/18/11	24,105,000		24,510,808
5.25% 11/5/12	1,405,000		1,400,845
5.75% 1/15/12	24,318,000		25,280,044
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS			84,294,386
U.S. Treasury Inflation Protected Obligations - 6.1%
U.S. Treasury Inflation-Indexed Notes:
0.875% 4/15/10	29,824,480		28,696,724
2% 1/15/14	41,717,838		41,241,839
2% 7/15/14	27,833,520		27,516,005
TOTAL U.S. TREASURY INFLATION PROTECTED OBLIGATIONS			97,454,568
U.S. Treasury Obligations - 10.4%
U.S. Treasury Notes:
4.75% 1/31/12 (d)	31,859,000		32,186,150
4.75% 5/15/14 (b)	132,695,000		134,415,915
TOTAL U.S. TREASURY OBLIGATIONS			166,602,065
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $350,664,106)		348,351,019
U.S. Government Agency - Mortgage Securities - 9.2%
	Principal Amount		Value
Fannie Mae - 6.0%
3.735% 10/1/33 (h)	$ 183,321		$ 180,812
3.75% 9/1/33 (h)	767,929		757,877
3.75% 1/1/34 (h)	167,739		165,237
3.759% 10/1/33 (h)	168,863		166,678
3.787% 6/1/34 (h)	792,826		777,858
3.824% 4/1/33 (h)	505,920		504,506
3.85% 10/1/33 (h)	4,270,020		4,225,851
3.943% 5/1/33 (h)	55,389		54,829
3.986% 2/1/35 (h)	143,011		142,275
3.998% 10/1/18 (h)	118,919		117,758
4% 8/1/18	3,041,384		2,881,168
4.014% 1/1/35 (h)	78,971		79,391
4.05% 2/1/35 (h)	132,581		132,146
4.065% 4/1/33 (h)	52,662		52,492
4.07% 2/1/35 (h)	85,017		85,245
4.076% 2/1/35 (h)	241,684		240,283
4.079% 2/1/35 (h)	80,829		80,471
4.102% 1/1/35 (h)	267,721		266,914
4.116% 2/1/35 (h)	321,087		320,394
4.126% 2/1/35 (h)	236,309		237,449
4.137% 1/1/35 (h)	480,762		479,151
4.175% 1/1/35 (h)	363,950		357,908
4.25% 2/1/35 (h)	182,190		179,379
4.258% 1/1/34 (h)	477,087		473,047
4.279% 3/1/35 (h)	159,100		158,868
4.281% 10/1/33 (h)	73,026		72,534
4.283% 8/1/33 (h)	313,596		312,092
4.292% 3/1/33 (h)	194,995		195,099
4.307% 3/1/33 (h)	84,756		83,396
4.317% 6/1/33 (h)	95,782		95,791
4.345% 5/1/35 (h)	190,424		189,434
4.347% 1/1/35 (h)	196,353		193,721
4.355% 4/1/35 (h)	94,287		93,651
4.364% 2/1/34 (h)	359,609		357,098
4.402% 2/1/35 (h)	268,608		264,976
4.416% 5/1/35 (h)	488,277		487,464
4.419% 12/1/33 (h)	7,495,291		7,397,807
4.421% 5/1/35 (h)	118,301		117,558
4.429% 3/1/35 (h)	248,836		245,569
4.448% 8/1/34 (h)	501,568		498,434
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount		Value
Fannie Mae - continued
4.481% 2/1/35 (h)	$ 141,917		$ 141,509
4.485% 3/1/35 (h)	539,878		533,596
4.5% 8/1/33 to 3/1/35	1,485,294		1,403,495
4.507% 2/1/35 (h)	956,113		957,263
4.508% 3/1/35 (h)	538,698		532,682
4.515% 2/1/35 (h)	2,628,164		2,615,625
4.515% 10/1/35 (h)	88,418		88,055
4.526% 1/1/35 (h)	206,927		206,484
4.531% 2/1/35 (h)	98,169		98,560
4.536% 7/1/35 (h)	580,723		578,596
4.568% 7/1/35 (h)	676,963		675,616
4.575% 2/1/35 (h)	480,385		475,847
4.578% 2/1/35 (h)	1,709,548		1,693,184
4.594% 11/1/34 (h)	490,860		487,031
4.6% 7/1/34 (h)	6,100,373		6,104,772
4.648% 3/1/35 (h)	1,180,469		1,180,424
4.662% 11/1/34 (h)	588,315		584,815
4.687% 3/1/35 (h)	70,913		70,922
4.715% 10/1/34 (h)	608,418		605,364
4.727% 7/1/34 (h)	467,449		465,764
4.743% 12/1/34 (h)	410,977		408,684
4.746% 5/1/33 (h)	8,992		9,040
4.782% 12/1/34 (h)	158,266		157,419
4.804% 6/1/35 (h)	778,110		777,223
4.809% 8/1/34 (h)	155,716		156,340
4.81% 2/1/33 (h)	238,404		239,445
4.813% 11/1/34 (h)	485,887		483,836
4.847% 7/1/36 (h)	1,071,375		1,069,732
4.859% 10/1/34 (h)	1,920,226		1,915,084
4.896% 10/1/35 (h)	360,874		361,124
4.95% 8/1/34 (h)	1,642,569		1,641,874
4.988% 2/1/35 (h)	56,058		55,935
5.064% 7/1/34 (h)	74,369		74,365
5.07% 5/1/35 (h)	983,495		985,549
5.071% 9/1/34 (h)	1,427,988		1,429,203
5.088% 9/1/34 (h)	158,530		158,690
5.135% 1/1/36 (h)	1,400,994		1,403,862
5.158% 5/1/35 (h)	1,737,286		1,738,135
5.168% 5/1/35 (h)	635,375		635,396
5.172% 8/1/33 (h)	229,872		230,724
5.176% 3/1/35 (h)	84,915		84,960
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount		Value
Fannie Mae - continued
5.178% 6/1/35 (h)	$ 714,221		$ 715,938
5.2% 5/1/35 (h)	1,824,324		1,826,634
5.218% 4/1/36 (h)	2,467,619		2,477,354
5.266% 11/1/36 (h)	652,651		655,710
5.285% 7/1/35 (h)	86,860		87,142
5.327% 12/1/34 (h)	247,996		249,014
5.401% 2/1/36 (h)	250,259		251,423
5.492% 2/1/36 (h)	3,000,366		3,022,701
5.5% 9/1/10 to 9/1/24	4,599,291		4,607,937
5.537% 11/1/36 (h)	1,331,403		1,340,505
5.616% 1/1/36 (h)	879,627		888,002
5.837% 3/1/36 (h)	2,006,374		2,029,983
5.855% 1/1/36 (h)	638,984		648,062
6% 5/1/16 to 4/1/17	962,922		979,268
6.5% 12/1/13 to 3/1/35	12,029,018		12,321,956
6.632% 9/1/36 (h)	2,705,638		2,755,868
7% 2/1/09 to 6/1/33	2,390,503		2,475,458
7.5% 8/1/17 to 9/1/28	743,543		774,045
8.5% 6/1/11 to 9/1/25	125,544		134,329
9.5% 2/1/25	21,993		23,869
10.5% 8/1/20	20,710		23,769
11% 8/1/15	128,872		135,918
12.5% 12/1/13 to 4/1/15	13,255		15,372
TOTAL FANNIE MAE			95,679,092
Freddie Mac - 0.7%
4.078% 1/1/35 (h)	647,245		642,239
4.16% 1/1/34 (h)	2,050,301		2,024,139
4.278% 3/1/35 (h)	209,660		208,412
4.279% 5/1/35 (h)	347,371		344,937
4.297% 12/1/34 (h)	246,667		242,480
4.321% 2/1/35 (h)	459,323		457,566
4.342% 3/1/35 (h)	380,615		374,223
4.38% 2/1/35 (h)	458,359		450,863
4.422% 6/1/35 (h)	318,570		316,324
4.426% 2/1/34 (h)	204,982		203,097
4.431% 3/1/35 (h)	233,078		229,194
4.452% 3/1/35 (h)	258,117		254,240
4.544% 2/1/35 (h)	416,431		410,664
4.772% 3/1/33 (h)	88,101		89,059
4.994% 4/1/35 (h)	1,110,331		1,109,909
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount		Value
Freddie Mac - continued
5.122% 4/1/35 (h)	$ 1,106,858		$ 1,103,614
5.291% 6/1/35 (h)	746,908		746,644
5.55% 1/1/36 (h)	1,423,167		1,428,889
8.5% 9/1/24 to 8/1/27	91,509		99,169
10% 5/1/09	2,126		2,167
10.5% 5/1/21	20,077		20,873
11% 12/1/11	1,416		1,501
11.5% 10/1/15	6,421		7,275
11.75% 10/1/10	8,079		8,740
TOTAL FREDDIE MAC			10,776,218
Government National Mortgage Association - 2.5%
4.25% 7/20/34 (h)	610,411		604,962
6.5% 3/1/37 (d)	38,000,000		38,987,924
7% 7/15/28 to 11/15/28	598,841		624,798
7.5% 2/15/28 to 10/15/28	11,060		11,600
8% 6/15/07 to 10/15/24	9,859		10,341
8.5% 4/15/17 to 10/15/21	107,958		117,310
11% 7/20/19 to 8/20/19	7,496		8,706
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION			40,365,641
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES (Cost $146,767,496)		146,820,951
Asset-Backed Securities - 2.8%

ACE Securities Corp. Series 2004-HE1:
Class M1, 5.82% 2/25/34 (h)	497,420		498,339
Class M2, 6.42% 2/25/34 (h)	600,000		604,742
Advanta Business Card Master Trust Series 2007-D1 Class D, 6.72% 1/22/13 (c)(h)	1,420,000		1,420,000
Aircraft Lease Securitization Ltd. Series 2005-1 Class C1, 9.07% 9/9/30 (c)(h)	375,593		381,227
American Express Credit Account Master Trust Series 2004-1 Class B, 5.57% 9/15/11 (h)	1,430,000		1,435,167
AmeriCredit Automobile Receivables Trust Series 2006-1 Class E1, 6.62% 5/6/13 (c)	1,335,000		1,327,284
Bank One Issuance Trust:
Series 2002-B1 Class B1, 5.7% 12/15/09 (h)	1,290,000		1,290,465
Series 2002-C1 Class C1, 6.28% 12/15/09 (h)	1,840,000		1,841,690
Asset-Backed Securities - continued
	Principal Amount		Value
Bear Stearns Asset Backed Securities, Inc. Series 2005-HE2:
Class M1, 5.82% 2/25/35 (h)	$ 1,555,000		$ 1,562,295
Class M2, 6.07% 2/25/35 (h)	570,000		574,563
Capital Auto Receivables Asset Trust Series 2006-SN1A:
Class B, 5.5% 4/20/10 (c)	245,000		246,158
Class C, 5.77% 5/20/10 (c)	235,000		237,294
Class D, 6.15% 4/20/11 (c)	400,000		405,869
Capital One Master Trust Series 2001-1 Class B, 5.83% 12/15/10 (h)	2,130,000		2,136,261
Carrington Mortgage Loan Trust Series 2006-NC3 Class M10, 7.32% 8/25/36 (c)(h)	215,000		185,303
Countrywide Home Loans, Inc.:
Series 2004-2 Class M1, 5.82% 5/25/34 (h)	1,770,000		1,775,624
Series 2004-3 Class M1, 5.82% 6/25/34 (h)	350,000		351,404
DB Master Finance LLC Series 2006-1 Class M1, 8.285% 6/20/31 (c)	715,000		732,754
First Franklin Mortgage Loan Trust Series 2004-FF2:
Class M3, 5.87% 3/25/34 (h)	100,000		100,096
Class M4, 6.22% 3/25/34 (h)	75,000		75,152
Ford Credit Auto Owner Trust:
Series 2006-B Class D, 7.26% 2/15/13 (c)	850,000		857,595
Series 2006-C Class D, 6.89% 5/15/13 (c)	585,000		589,596
Fremont Home Loan Trust:
Series 2004-A Class M1, 5.87% 1/25/34 (h)	1,100,000		1,100,550
Series 2005-A:
Class M2, 5.78% 1/25/35 (h)	550,000		552,429
Class M3, 5.81% 1/25/35 (h)	300,000		301,550
Class M4, 6% 1/25/35 (h)	225,000		226,451
GS Auto Loan Trust Series 2006-1 Class D, 6.25% 1/15/14 (c)	1,030,000		1,022,965
GSAMP Trust Series 2004-FM2:
Class M1, 5.82% 1/25/34 (h)	749,050		749,050
Class M2, 6.42% 1/25/34 (h)	140,773		140,773
Class M3, 6.62% 1/25/34 (h)	83,136		83,136
Home Equity Asset Trust:
Series 2003-2 Class M1, 6.64% 8/25/33 (h)	634,210		634,720
Series 2004-3 Class M2, 6.52% 8/25/34 (h)	535,000		539,486
HSBC Home Equity Loan Trust Series 2005-2:
Class M1, 5.78% 1/20/35 (h)	328,388		328,860
Class M2, 5.81% 1/20/35 (h)	246,873		247,719
Long Beach Mortgage Loan Trust:
Series 2003-3 Class M1, 6.07% 7/25/33 (h)	2,441,358		2,447,961
Asset-Backed Securities - continued
	Principal Amount		Value
Long Beach Mortgage Loan Trust: - continued
Series 2006-7 Class M11, 7.82% 8/25/36 (h)	$ 1,000,000		$ 744,939
MBNA Credit Card Master Note Trust Series 2003-B2 Class B2, 5.71% 10/15/10 (h)	350,000		351,409
Meritage Mortgage Loan Trust Series 2004-1:
Class M1, 5.82% 7/25/34 (h)	471,554		474,581
Class M2, 5.87% 7/25/34 (h)	100,000		100,226
Morgan Stanley ABS Capital I, Inc.:
Series 2002-HE3 Class M1, 6.42% 12/27/32 (h)	460,000		460,632
Series 2003-NC8 Class M1, 6.02% 9/25/33 (h)	664,956		665,768
Morgan Stanley Dean Witter Capital I Trust:
Series 2001-NC4 Class M1, 6.82% 1/25/32 (h)	348,003		348,348
Series 2002-NC1 Class M1, 6.52% 2/25/32 (c)(h)	706,794		707,287
Series 2002-NC3 Class M1, 6.4% 8/25/32 (h)	375,000		375,262
NovaStar Home Equity Loan Series 2004-1:
Class M1, 5.77% 6/25/34 (h)	350,000		351,616
Class M4, 6.295% 6/25/34 (h)	585,000		588,251
Onyx Acceptance Owner Trust Series 2005-B Class A4, 4.34% 5/15/12	1,045,000		1,031,817
Ownit Mortgage Loan Asset-Backed Certificates Series 2005-3 Class A2A, 5.44% 6/25/36 (h)	826,851		826,953
SLM Private Credit Student Loan Trust Series 2004-A Class C, 6.31% 6/15/33 (h)	1,190,000		1,203,769
Structured Asset Securities Corp. Series 2006-BC1 Class B1, 7.82% 3/25/36 (c)(h)	700,000		431,900
Superior Wholesale Inventory Financing Trust VII Series 2003-A8 Class CTFS, 5.77% 3/15/11 (c)(h)	2,320,000		2,320,000
Superior Wholesale Inventory Financing Trust XII Series 2005-A12:
Class B, 5.8% 6/15/10 (h)	1,425,000		1,427,148
Class C, 6.52% 6/15/10 (h)	710,000		716,833
Wachovia Auto Loan Trust Series 2006-2A Class E, 7.05% 5/20/14 (c)	955,000		965,972
WaMu Master Note Trust Series 2006-C2A Class C2, 5.82% 8/15/15 (c)(h)	2,630,000		2,630,000
Washington Mutual Asset-Backed Certificates Series 2006-HE5 Class B1, 7.82% 10/25/36 (c)(h)	825,000		722,620
TOTAL ASSET-BACKED SECURITIES (Cost $44,536,643)		44,449,859
Collateralized Mortgage Obligations - 3.6%
	Principal Amount		Value
Private Sponsor - 0.9%
Banc of America Mortgage Securities, Inc.:
Series 2003-K Class 1A1, 6.0303% 12/25/33 (h)	$ 168,563		$ 170,089
Series 2004-B Class 1A1, 3.5013% 3/25/34 (h)	357,268		358,686
Series 2004-C Class 1A1, 3.3242% 4/25/34 (h)	887,458		906,624
Credit Suisse First Boston Adjustable Rate Mortgage Trust floater Series 2005-2 Class 6A2, 5.6% 6/25/35 (h)	171,317		171,602
Credit Suisse First Boston Mortgage Securities Corp. floater:
Series 2004-AR3 Class 6A2, 5.69% 4/25/34 (h)	75,856		75,875
Series 2004-AR6 Class 9A2, 5.69% 10/25/34 (h)	224,571		224,918
Granite Master Issuer PLC floater Series 2006-1A Class C2, 5.96% 12/20/54 (c)(h)	1,200,000		1,200,000
Merrill Lynch Mortgage Investors, Inc.:
floater Series 2005-B Class A2, 5.5988% 7/25/30 (h)	608,175		609,086
Series 2003-E Class XA1, 1% 10/25/28 (h)(j)	5,299,053		19,899
Opteum Mortgage Acceptance Corp. floater Series 2005-3 Class APT, 5.61% 7/25/35 (h)	886,838		888,693
Residential Finance LP/Residential Finance Development Corp. floater:
Series 2003-B:
Class B4, 7.07% 7/10/35 (c)(h)	1,680,638		1,705,848
Class B5, 7.67% 7/10/35 (c)(h)	1,587,269		1,589,750
Class B6, 8.17% 7/10/35 (c)(h)	746,950		764,130
Series 2003-CB1:
Class B3, 6.77% 6/10/35 (c)(h)	783,319		795,069
Class B4, 6.97% 6/10/35 (c)(h)	699,392		713,380
Class B5, 7.57% 6/10/35 (c)(h)	475,587		485,098
Class B6, 8.07% 6/10/35 (c)(h)	284,419		292,383
Series 2004-B:
Class B4, 6.42% 2/10/36 (c)(h)	287,103		291,697
Class B5, 6.87% 2/10/36 (c)(h)	287,103		290,692
Class B6, 7.32% 2/10/36 (c)(h)	95,701		97,137
Series 2004-C:
Class B4, 6.27% 9/10/36 (c)(h)	386,101		391,893
Class B5, 6.67% 9/10/36 (c)(h)	482,627		487,453
Class B6, 7.07% 9/10/36 (c)(h)	96,525		97,491
Residential Funding Securities Corp. Series 2003-RP2 Class A1, 4% 6/25/33 (c)(h)	484,908		487,313
Collateralized Mortgage Obligations - continued
	Principal Amount		Value
Private Sponsor - continued
Sequoia Mortgage Trust floater Series 2004-8 Class A2, 5.755% 9/20/34 (h)	$ 522,939		$ 523,851
Structured Asset Securities Corp. floater Series 2006-BC5 Class B, 7.82% 12/25/36 (h)	650,000		552,003
TOTAL PRIVATE SPONSOR			14,190,660
U.S. Government Agency - 2.7%
Fannie Mae planned amortization class Series 2003-39 Class PV, 5.5% 9/25/22	3,045,000		3,063,444
Fannie Mae Grantor Trust floater Series 2005-90 Class FG, 5.57% 10/25/35 (h)	5,207,654		5,215,802
Fannie Mae guaranteed REMIC pass thru certificates:
planned amortization class:
Series 2003-84 Class GC, 4.5% 5/25/15	1,540,000		1,523,877
Series 2005-67 Class HD, 5.5% 12/25/30	2,835,000		2,861,918
Series 2006-4 Class PB, 6% 9/25/35	2,955,000		3,020,127
sequential payer:
Series 2002-56 Class MC, 5.5% 9/25/17	924,228		932,510
Series 2004-3 Class BA, 4% 7/25/17	150,500		146,253
Series 2004-45 Class AV, 4.5% 10/25/22	1,355,000		1,340,885
Series 2004-86 Class KC, 4.5% 5/25/19	658,902		646,373
Series 2004-91 Class AH, 4.5% 5/25/29	1,374,472		1,347,300
Freddie Mac planned amortization class:
Series 2104 Class PG, 6% 12/15/28	1,442,730		1,480,649
Series 2356 Class GD, 6% 9/15/16	1,018,858		1,042,723
Series 3033 Class UD, 5.5% 10/15/30	1,075,000		1,086,192
Freddie Mac Multi-class participation certificates guaranteed:
planned amortization class:
Series 2363 Class PF, 6% 9/15/16	1,387,689		1,419,268
Series 2702 Class WB, 5% 4/15/17	2,480,000		2,486,131
Series 2952 Class EC, 5.5% 11/15/28	2,785,000		2,812,640
Series 3018 Class UD, 5.5% 9/15/30	1,735,000		1,753,963
Series 3049 Class DB, 5.5% 6/15/31	2,495,000		2,521,539
sequential payer:
Series 2777 Class AB, 4.5% 6/15/29	3,127,243		3,066,815
Series 2809 Class UA, 4% 12/15/14	787,344		773,937
Series 3117 Class PC, 5% 6/15/31	4,000,000		3,977,311
TOTAL U.S. GOVERNMENT AGENCY			42,519,657
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $56,122,612)		56,710,317
Commercial Mortgage Securities - 1.9%
	Principal Amount		Value
Banc of America Large Loan, Inc.:
floater:
Series 2003-BBA2:
Class H, 6.72% 11/15/15 (c)(h)	$ 265,000		$ 264,999
Class J, 7.27% 11/15/15 (c)(h)	275,000		274,892
Class K, 7.92% 11/15/15 (c)(h)	245,000		244,754
Series 2005-ESHA:
Class E, 5.9% 7/14/20 (c)(h)	725,000		725,771
Class F, 6.07% 7/14/20 (c)(h)	435,000		435,462
Class G, 6.2% 7/14/20 (c)(h)	215,000		215,228
Class H, 6.42% 7/14/20 (c)(h)	290,000		290,307
Series 2005-MIB1:
Class C, 5.63% 3/15/22 (c)(h)	335,000		335,245
Class D, 5.68% 3/15/22 (c)(h)	340,000		340,253
Class F, 5.79% 3/15/22 (c)(h)	330,000		330,255
Class G, 5.85% 3/15/22 (c)(h)	215,000		215,166
Series 2006-ESH:
Class A, 6.18% 7/14/11 (c)(h)	731,304		731,397
Class B, 6.28% 7/14/11 (c)(h)	364,678		364,484
Class C, 6.43% 7/14/11 (c)(h)	730,330		730,422
Class D, 7.061% 7/14/11 (c)(h)	424,462		424,751
Bayview Commercial Asset Trust floater:
Series 2004-1:
Class A, 5.68% 4/25/34 (c)(h)	1,036,656		1,038,600
Class B, 7.22% 4/25/34 (c)(h)	109,122		109,906
Class M1, 5.88% 4/25/34 (c)(h)	109,122		109,446
Class M2, 6.52% 4/25/34 (c)(h)	54,561		55,038
Series 2004-2 Class A, 5.75% 8/25/34 (c)(h)	1,034,552		1,038,108
Series 2004-3:
Class A1, 5.69% 1/25/35 (c)(h)	1,161,909		1,164,995
Class A2, 5.74% 1/25/35 (c)(h)	170,869		171,350
Class M1, 5.82% 1/25/35 (c)(h)	205,043		205,780
Class M2, 6.32% 1/25/35 (c)(h)	136,695		137,870
Series 2005-4A:
Class A2, 5.71% 1/25/36 (c)(h)	1,735,379		1,741,345
Class B1, 6.72% 1/25/36 (c)(h)	91,336		91,593
Class M1, 5.77% 1/25/36 (c)(h)	548,015		550,583
Class M2, 5.79% 1/25/36 (c)(h)	182,672		183,528
Commercial Mortgage Securities - continued
	Principal Amount		Value
Bayview Commercial Asset Trust floater - continued
Series 2005-4A:
Class M3, 5.82% 1/25/36 (c)(h)	$ 274,007		$ 275,420
Class M4, 5.93% 1/25/36 (c)(h)	91,336		91,864
Class M5, 5.97% 1/25/36 (c)(h)	91,336		91,864
Class M6, 6.02% 1/25/36 (c)(h)	91,336		91,807
Bear Stearns Commercial Mortgage Securities, Inc. Series 2003-T12 Class X2, 0.6532% 8/13/39 (c)(h)(j)	6,003,816		99,995
Citigroup/Deutsche Bank Commercial Mortgage Trust sequential payer Series 2006-CD3 Class A3, 5.607% 10/15/48	3,000,000		3,061,992
COMM floater Series 2002-FL7 Class D, 5.89% 11/15/14 (c)(h)	137,143		137,478
Commercial Mortgage pass thru certificates floater Series 2005-FL11:
Class B, 5.57% 11/15/17 (c)(h)	569,670		569,813
Class E, 5.71% 11/15/17 (c)(h)	255,770		255,907
Class F, 5.77% 11/15/17 (c)(h)	232,518		232,636
DL J Commercial Mortgage Corp. sequential pay Series 1999-CG1 Class A1B, 6.46% 3/10/32	4,020,000		4,100,518
Ginnie Mae guaranteed Multi-family pass thru securities sequential payer Series 2002-35 Class C, 5.8867% 10/16/23 (h)	244,146		247,857
Ginnie Mae guaranteed REMIC pass thru securities:
sequential pay Series 2003-59 Class D, 3.654% 10/16/27	3,060,000		2,896,693
sequential payer Series 2003-47 Class C, 4.227% 10/16/27	2,856,041		2,792,047
GMAC Commercial Mortgage Securities, Inc. Series 2004-C3 Class X2, 0.6945% 12/10/41 (h)(j)	12,147,495		262,596
Lehman Brothers Floating Rate Commercial Mortgage Trust floater Series 2003-LLFA:
Class J, 7.37% 12/16/14 (c)(h)	1,480,000		1,479,918
Class K1, 7.87% 12/16/14 (c)(h)	770,000		769,807
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $30,153,946)		29,979,740
Fixed-Income Funds - 61.2%
	Shares		Value
Fidelity 1-3 Year Duration Securitized Bond Central Fund (i)	1,211,460		$ 120,806,755
Fidelity 2-5 Year Duration Securitized Bond Central Fund (i)	1,569,334		157,419,893
Fidelity Corporate Bond 1-10 Year Central Fund (i)	4,248,746		430,100,507
Fidelity Corporate Bond 1-5 Year Central Fund (i)	300,000		30,234,000
Fidelity Specialized High Income Central Fund (i)	150,068		15,294,931
Fidelity Ultra-Short Central Fund (i)	2,249,749		223,467,558
TOTAL FIXED-INCOME FUNDS (Cost $974,385,462)		977,323,644
Cash Equivalents - 10.7%
	Maturity Amount
Investments in repurchase agreements in a joint trading account at 5.34%, dated 2/28/07 due 3/1/07:
(Collateralized by U.S. Government Obligations) #	$ 32,674,842		32,670,000
(Collateralized by U.S. Government Obligations) # (a)	138,137,487		138,117,000
TOTAL CASH EQUIVALENTS (Cost $170,787,000)		170,787,000
TOTAL INVESTMENT PORTFOLIO - 112.8% (Cost $1,798,176,397)			1,799,582,059
NET OTHER ASSETS - (12.8)%			(203,959,825)
NET ASSETS - 100%		$ 1,595,622,234

Swap Agreements
	Expiration Date	Notional Amount
Credit Default Swaps
Receive monthly notional amount multiplied by 3.05% and pay Merrill Lynch upon default event of Morgan Stanley ABS Capital I, Inc., par value of the proportional notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-NC8, Class B3, 8.45% 9/25/34	Oct. 2034	$ 400,000	(22,690)
Swap Agreements - continued
	Expiration Date	Notional Amount	Value
Credit Default Swaps - continued
Receive monthly notional amount multiplied by 3.35% and pay Morgan Stanley, Inc. upon default event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-HE7 Class B3, 8.85% 8/25/34	Sept. 2034	$ 409,000	$ (11,984)
Receive monthly notional amount multiplied by 3.35% and pay Morgan Stanley, Inc. upon default event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-NC7, Class B3, 8.85% 7/25/34	August 2034	409,000	(12,665)
Recieve monthly notional amount multiplied by 3.35% and pay Morgan Stanley, Inc. upon default event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-HE8 Class B3, 7.3913% 9/25/34	Oct. 2034	409,000	(15,002)
Receive monthly notional amount multiplied by 2.5% and pay Credit Suisse First Boston upon default event of Ameriquest Mortgage Securities, Inc., par value of the notional amount of Ameriquest Mortgage Securities, Inc. Series 2004-R11 Class M9, 8.03% 11/25/34	Dec. 2034	625,000	(47,707)
Receive monthly notional amount multiplied by .52% and pay Bank of America upon default event of Ameriquest Mortgage Securities, Inc., par value of the notional amount of Ameriquest Mortgage Securities, Inc. Series 2004-R8 Class M6, 6.835% 9/25/34	Oct. 2034	1,900,000	(32,247)
Receive monthly notional amount multiplied by .8% and pay Deutsche Bank upon default event of Park Place Securities, Inc., par value of the notional amount of Park Place Securities, Inc. Series 2005-WCH1 Class M6, 6.365% 1/25/35	Feb. 2035	600,000	(15,582)
Swap Agreements - continued
	Expiration Date	Notional Amount	Value
Credit Default Swaps - continued
Receive monthly notional amount multiplied by .82% and pay UBS upon default event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-NC6 Class M3, 5.6413% 7/25/34	August 2034	$ 409,000	$ (2,572)
Receive monthly notional amount multiplied by .85% and pay Deutsche Bank upon default event of Park Place Securities, Inc., par value of the notional amount of Park Place Securities, Inc. Series 2005-WHQ2 Class M6, 6.105% 5/25/35	June 2035	600,000	(14,887)
Receive monthly notional amount multiplied by .85% and pay UBS upon default event of Ameriquest Mortgage Securities, Inc., par value of the notional amount of Ameriquest Mortgage Securities, Inc. Series 2004-R9 Class M5, 5.5913% 10/25/34	Nov. 2034	409,000	(5,582)
Receive monthly notional amount multiplied by .85% and pay UBS upon default event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-NC8 Class M6, 5.4413% 9/25/34	Oct. 2034	409,000	(4,599)
Receive monthly notional amount multiplied by 1.6% and pay Morgan Stanley, Inc. upon default event of Park Place Securities, Inc., par value of the notional amount of Park Place Securities, Inc. Series 2005-WHQ2 Class M7, 5.4413% 5/25/35	June 2035	370,000	(14,876)
Receive monthly notional amount multiplied by 1.66% and pay Morgan Stanley, Inc. upon default event of Park Place Securities, Inc., par value of the notional amount of Park Place Securities, Inc. Series 2005-WHQ2 Class M7, 5.4413% 5/25/35	June 2035	409,000	(15,892)
Swap Agreements - continued
	Expiration Date	Notional Amount	Value
Credit Default Swaps - continued
Receive monthly notional amount multiplied by 2% and pay Goldman Sachs upon default event of Long Beach Mortgage Loan Trust, par value of the notional amount of Long Beach Mortgage Loan Trust Series 2006-7 Class M9, 7.14% 8/25/36	Sept. 2036	$ 1,000,000	$ (213,363)
Receive monthly notional amount multiplied by 2.54% and pay Merrill Lynch upon default event of Countrywide Home Loans, Inc., par value of the notional amount of Countrywide Home Loans, Inc. Series 2003-BC1 Class B1, 7.6913% 3/25/32	April 2032	41,954	(319)
Receive monthly notional amount multiplied by 2.61% and pay Goldman Sachs upon default event of Fremont Home Loan Trust, par value of the notional amount of Fremont Home Loan Trust Series 2004-1 Class M9, 7.3913% 2/25/34	March 2034	115,173	(2,750)
Receive monthly notional amount multiplied by 2.61% and pay Goldman Sachs upon default event of Fremont Home Loan Trust, par value of the notional amount of Fremont Home Loan Trust Series 2004-A Class B3, 7.0413% 1/25/34	Feb. 2034	64,084	(823)
Receive monthly notional amount multiplied by 2.7% and pay Merrill Lynch, Inc. upon default event of Park Place Securities, Inc., par value of the notional amount of Park Place Securities, Inc. Series 2005-WHQ2 Class M9, 6.4606% 5/25/35	June 2035	2,410,000	(258,328)
Receive monthly notional amount multiplied by 3% and pay UBS upon default event of Ameriquest Mortgage Securities, Inc., par value of the notional amount of Ameriquest Mortgage Securities, Inc. Series 2005-R4 Class M9, 7.07% 7/25/35	August 2035	700,000	(30,076)
Receive monthly notional amount multiplied by 5% and pay Deutsche Bank upon default event of MASTR Asset Backed Securities Trust, par value of the notional amount of MASTR Asset Backed Securities Trust Series 2003-NC1 Class M6, 8.1913% 4/25/33	May 2033	409,000	(2,506)
Swap Agreements - continued
	Expiration Date	Notional Amount	Value
Credit Default Swaps - continued
Receive monthly notional amount multiplied by 5.55% and pay Deutsche Bank upon default event of Carrington Mortgage Loan Trust, par value of the notional amount of Carrington Mortgage Loan Trust Series 2006-FRE1 Class M10, 7.74% 7/25/36	August 2036	$ 700,000	$ (32,380)
Receive monthly notional amount multiplied by 6.25% and pay Deutsche Bank upon default event of Ramp Ser 2006-RS5 Trust, par value of the notional amount of Ramp Ser 2006-RS5 Trust 7.17% 9/25/36	Oct. 2036	700,000	(77,560)
Receive quarterly a fixed rate of .4% multiplied by the notional amount and pay to Merrill Lynch, Inc., upon each default event of one of the issues of Dow Jones CDX N.A. Investment Grade 4 Index, par value of the proportional notional amount (f)	June 2010	10,000,000	62,891
Receive quarterly a fixed rate of .45% multiplied by the notional amount and pay to Goldman Sachs, upon each default event of one of the issues of Dow Jones CDX N.A. Investment Grade 5 Index, par value of the proportional notional amount (g)	Dec. 2010	15,000,000	127,937
Receive quarterly a fixed rate of .5% multiplied by the notional amount and pay to Merrill Lynch, Inc., upon each default event of one of the issues of Dow Jones CDX N.A. Investment Grade 3 Index, par value of the proportional notional amount (e)	March 2010	6,373,600	71,596
TOTAL CREDIT DEFAULT SWAPS		44,871,811	(571,966)
Interest Rate Swaps
Receive quarterly a fixed rate equal to 4.3875% and pay quarterly a floating rate based on 3-month LIBOR with Credit Suisse First Boston	March 2010	6,425,000	(112,910)
Receive semi-annually a fixed rate equal to 4.795% and pay quarterly a floating rate based on 3-month LIBOR with Lehman Brothers, Inc.	Dec. 2011	15,000,000	(134,588)
Swap Agreements - continued
	Expiration Date	Notional Amount	Value
Interest Rate Swaps - continued
Receive semi-annually a fixed rate equal to 5.022% and pay quarterly a floating rate based on 3-month LIBOR with Lehman Brothers, Inc.	Nov. 2011	$ 20,000,000	$ 291,446
Receive semi-annually a fixed rate equal to 5.095% and pay quarterly a floating rate based on 3-month LIBOR with Bank of America	Feb. 2012	30,000,000	153,465
Receive semi-annually a fixed rate equal to 5.145% and pay quarterly a floating rate based on 3-month LIBOR with Credit Suisse First Boston	Feb. 2012	60,000,000	433,410
Receive semi-annually a fixed rate equal to 5.186% and pay quarterly a floating rate based on 3-month LIBOR with JPMorgan Chase, Inc.	Sept. 2011	15,000,000	317,428
Receive semi-annually a fixed rate equal to 5.3315% and pay quarterly a floating rate based on 3-month LIBOR with JPMorgan Chase, Inc.	April 2011	15,000,000	400,938
TOTAL INTEREST RATE SWAPS		161,425,000	1,349,189
		$ 206,296,811	$ 777,223