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 29, 2008

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 29, 2008

(2_fidelity_logos) (Registered_Trademark)

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 http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.

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

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

All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC 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 holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Chairman's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

Continuation of a credit squeeze, flat consumer spending and a potential recession weighed heavily on stocks in the opening months of 2008, though positive results in investment-grade bonds and money markets offered some comfort to investors. Financial markets are always unpredictable, but 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, 2007 to February 29, 2008).

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 share-holder 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

	Beginning Account Value September 1, 2007	Ending Account Value February 29, 2008	Expenses Paid During Period* September 1, 2007 to February 29, 2008
Class A
Actual	$ 1,000.00	$ 1,032.70	$ 4.30
Hypothetical^A	$ 1,000.00	$ 1,020.64	$ 4.27
Class T
Actual	$ 1,000.00	$ 1,033.80	$ 4.15
Hypothetical^A	$ 1,000.00	$ 1,020.79	$ 4.12
Class B
Actual	$ 1,000.00	$ 1,029.20	$ 7.72
Hypothetical^A	$ 1,000.00	$ 1,017.26	$ 7.67
Class C
Actual	$ 1,000.00	$ 1,029.00	$ 8.02
Hypothetical^A	$ 1,000.00	$ 1,016.96	$ 7.97
Institutional Class
Actual	$ 1,000.00	$ 1,035.20	$ 2.73
Hypothetical^A	$ 1,000.00	$ 1,022.18	$ 2.72

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 182/366 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in the Fund's annualized expense ratio.

	Annualized Expense Ratio
Class A	.85%
Class T	.82%
Class B	1.53%
Class C	1.59%
Institutional Class	.54%

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 the investments in each Fidelity Central Fund.

Quality Diversification (% of fund's net assets)
As of February 29, 2008		As of August 31, 2007
	U.S. Government and U.S. Government Agency Obligations 41.4%		U.S. Government and U.S. Government Agency Obligations 41.0%
	AAA 13.0%		AAA 17.0%
	AA 6.1%		AA 7.9%
	A 10.1%		A 7.6%
	BBB 17.7%		BBB 19.9%
	BB and Below 4.1%		BB and Below 4.1%
	Not Rated 0.5%		Not Rated 0.5%
	Short-Term Investments and Net Other Assets 7.1%		Short-Term Investments and Net Other Assets 2.0%

We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent downgrades.

Weighted Average Maturity as of February 29, 2008
		6 months ago
Years	4.3	3.8

The weighted average maturity is based on the dollar-weighted average length of time until principal payments are expected or until securities reach maturity, taking into account any maturity shortening feature such as a call, refunding or redemption provision.

Duration as of February 29, 2008
		6 months ago
Years	3.9	3.6

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 29, 2008 *			As of August 31, 2007 **
	Corporate Bonds 32.7%			Corporate Bonds 30.2%
	U.S. Government and U.S. Government Agency Obligations 41.4%			U.S. Government and U.S. Government Agency Obligations 41.0%
	Asset-Backed Securities 6.1%			Asset-Backed Securities 11.3%
	CMOs and Other Mortgage Related Securities 12.3%			CMOs and Other Mortgage Related Securities 14.9%
	Other Investments 0.4%			Other Investments 0.6%
	Short-Term Investments and Net Other Assets 7.1%			Short-Term Investments and Net Other Assets 2.0%
* Foreign investments		10.0%	** Foreign investments		9.7%
* Futures and Swaps		18.1%	** Futures and Swaps		18.0%

A holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at advisor.fidelity.com.

Semiannual Report

Investments February 29, 2008 (Unaudited)

Showing Percentage of Net Assets

Nonconvertible Bonds - 5.8%
	Principal Amount		Value
CONSUMER DISCRETIONARY - 0.3%
Media - 0.3%
Time Warner Cable, Inc. 5.85% 5/1/17	$ 1,328,000		$ 1,312,162
Univision Communications, Inc. 3.875% 10/15/08	1,680,000		1,631,700
Viacom, Inc. 6.125% 10/5/17	905,000		904,617
			3,848,479
CONSUMER STAPLES - 0.6%
Beverages - 0.2%
Diageo Capital PLC 5.75% 10/23/17	1,678,000		1,727,142
Food & Staples Retailing - 0.2%
CVS Caremark Corp. 6.302% 6/1/37 (j)	2,510,000		2,381,104
Food Products - 0.1%
Kraft Foods, Inc. 6.125% 2/1/18	1,012,000		1,024,845
Tobacco - 0.1%
Reynolds American, Inc. 7.25% 6/15/37	1,575,000		1,544,591
TOTAL CONSUMER STAPLES			6,677,682
ENERGY - 0.6%
Oil, Gas & Consumable Fuels - 0.6%
Anadarko Petroleum Corp. 6.45% 9/15/36	540,000		547,061
Gazstream SA 5.625% 7/22/13 (c)	1,977,858		1,959,069
Nexen, Inc. 6.4% 5/15/37	1,015,000		982,236
NGPL PipeCo LLC 6.514% 12/15/12 (c)	800,000		840,714
Talisman Energy, Inc. yankee 6.25% 2/1/38	635,000		593,526
Texas Eastern Transmission LP 6% 9/15/17 (c)	1,138,000		1,192,974
Transcontinental Gas Pipe Line Corp. 6.4% 4/15/16	525,000		527,625
Valero Energy Corp. 6.625% 6/15/37	745,000		734,013
			7,377,218
FINANCIALS - 2.4%
Capital Markets - 0.3%
BlackRock, Inc. 6.25% 9/15/17	1,720,000		1,814,179
Goldman Sachs Group, Inc. 6.75% 10/1/37	1,280,000		1,195,040
			3,009,219
Commercial Banks - 0.6%
Credit Suisse First Boston 6% 2/15/18	1,505,000		1,535,740
Standard Chartered Bank 6.4% 9/26/17 (c)	3,181,000		3,300,494
Wells Fargo & Co. 5.625% 12/11/17	2,063,000		2,139,733
			6,975,967
Nonconvertible Bonds - continued
	Principal Amount		Value
FINANCIALS - continued
Consumer Finance - 0.6%
American General Finance Corp. 6.9% 12/15/17	$ 960,000		$ 964,792
General Electric Capital Corp.:
5.625% 9/15/17	1,130,000		1,162,135
6.375% 11/15/67 (j)	1,700,000		1,729,903
SLM Corp.:
3.4713% 7/27/09 (j)	531,000		476,820
3.4913% 7/26/10 (j)	2,025,000		1,747,154
4% 1/15/09	465,000		448,297
4.5% 7/26/10	1,025,000		949,029
			7,478,130
Diversified Financial Services - 0.2%
TECO Finance, Inc. 7% 5/1/12 (c)	1,500,000		1,617,476
ZFS Finance USA Trust V 6.5% 5/9/67 (c)(j)	805,000		728,390
			2,345,866
Insurance - 0.4%
American International Group, Inc. 5.85% 1/16/18	2,025,000		2,020,314
Pennsylvania Mutual Life Insurance Co. 6.65% 6/15/34 (c)	3,000,000		3,210,498
			5,230,812
Real Estate Investment Trusts - 0.2%
Duke Realty LP:
5.95% 2/15/17	110,000		97,548
6.5% 1/15/18	855,000		782,466
Liberty Property LP 6.625% 10/1/17	645,000		631,120
UDR, Inc. 5.5% 4/1/14	1,470,000		1,398,711
			2,909,845
Real Estate Management & Development - 0.1%
ERP Operating LP 5.75% 6/15/17	790,000		709,802
TOTAL FINANCIALS			28,659,641
HEALTH CARE - 0.2%
Pharmaceuticals - 0.2%
AstraZeneca PLC:
5.9% 9/15/17	930,000		999,378
6.45% 9/15/37	695,000		747,010
			1,746,388
Nonconvertible Bonds - continued
	Principal Amount		Value
INDUSTRIALS - 0.8%
Aerospace & Defense - 0.1%
Bombardier, Inc. 6.3% 5/1/14 (c)	$ 1,575,000		$ 1,496,250
Airlines - 0.4%
American Airlines, Inc. pass thru trust certificates 7.324% 4/15/11	500,000		487,500
Delta Air Lines, Inc. pass thru trust certificates 7.57% 11/18/10	2,520,000		2,528,316
United Air Lines, Inc. pass-thru trust certificates:
7.032% 4/1/12	684,271		684,271
7.186% 10/1/12	1,700,418		1,695,113
			5,395,200
Industrial Conglomerates - 0.3%
General Electric Co. 5.25% 12/6/17	3,100,000		3,111,303
TOTAL INDUSTRIALS			10,002,753
UTILITIES - 0.9%
Electric Utilities - 0.7%
Commonwealth Edison Co. 5.4% 12/15/11	927,000		955,881
Duke Energy Carolinas LLC 5.25% 1/15/18	710,000		729,765
EDP Finance BV 6% 2/2/18 (c)	1,295,000		1,321,081
Enel Finance International SA 6.25% 9/15/17 (c)	679,000		712,254
Nevada Power Co. 6.5% 5/15/18	3,950,000		4,009,250
			7,728,231
Independent Power Producers & Energy Traders - 0.1%
TXU Corp. 5.55% 11/15/14	1,645,000		1,299,550
Multi-Utilities - 0.1%
CMS Energy Corp. 6.55% 7/17/17	1,740,000		1,730,221
TOTAL UTILITIES			10,758,002
TOTAL NONCONVERTIBLE BONDS (Cost $69,208,548)		69,070,163
U.S. Government and Government Agency Obligations - 22.2%

U.S. Government Agency Obligations - 5.1%
Fannie Mae:
4.375% 7/17/13	4,850,000		5,066,329
5% 2/16/12	18,000,000		19,272,204
U.S. Government and Government Agency Obligations - continued
	Principal Amount		Value
U.S. Government Agency Obligations - continued
Federal Home Loan Bank 5.375% 8/19/11	$ 10,035,000		$ 10,861,794
Freddie Mac 5.25% 7/18/11	24,105,000		25,888,433
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS			61,088,760
U.S. Treasury Inflation Protected Obligations - 8.0%
U.S. Treasury Inflation-Indexed Notes:
2% 4/15/12	5,175,400		5,605,631
2% 1/15/14 (b)	43,423,468		47,134,961
2% 7/15/14 (b)	28,971,540		31,513,459
2.625% 7/15/17	10,134,300		11,561,304
TOTAL U.S. TREASURY INFLATION PROTECTED OBLIGATIONS			95,815,355
U.S. Treasury Obligations - 9.1%
U.S. Treasury Notes:
2.75% 2/28/13 (d)	16,690,000		16,865,275
2.875% 1/31/13 (d)	11,351,000		11,548,450
4.25% 8/15/14 (e)	50,000,000		53,984,407
4.25% 11/15/17 (b)	25,000,000		26,427,725
TOTAL U.S. TREASURY OBLIGATIONS			108,825,857
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $250,881,073)		265,729,972
U.S. Government Agency - Mortgage Securities - 12.3%

Fannie Mae - 7.4%
3.699% 10/1/33 (j)	149,042		151,421
3.75% 9/1/33 (j)	599,548		607,385
3.75% 10/1/33 (j)	138,001		139,207
3.75% 1/1/34 (j)	137,134		138,767
3.785% 6/1/34 (j)	694,826		706,551
3.807% 4/1/33 (j)	352,604		355,566
3.843% 10/1/33 (j)	3,374,691		3,425,423
3.907% 5/1/33 (j)	41,944		42,521
4% 8/1/18	2,691,426		2,650,431
4.073% 10/1/18 (j)	89,867		90,888
4.172% 1/1/35 (j)	311,566		317,930
4.175% 4/1/33 (j)	23,415		23,744
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount		Value
Fannie Mae - continued
4.237% 1/1/34 (j)	$ 370,715		$ 375,272
4.25% 2/1/35 (j)	151,280		154,600
4.264% 10/1/33 (j)	58,626		59,575
4.288% 6/1/33 (j)	66,876		67,963
4.302% 3/1/33 (j)	66,817		68,154
4.33% 4/1/35 (j)	66,425		67,434
4.344% 1/1/35 (j)	167,065		171,011
4.347% 3/1/35 (j)	117,256		119,093
4.358% 2/1/34 (j)	280,778		284,498
4.365% 8/1/33 (j)	233,311		235,470
4.373% 5/1/35 (j)	119,868		122,115
4.373% 5/1/35 (j)	91,954		93,275
4.391% 2/1/35 (j)	242,855		248,680
4.413% 12/1/33 (j)	6,101,766		6,239,361
4.418% 8/1/34 (j)	393,308		398,656
4.424% 3/1/33 (j)	97,717		99,934
4.434% 3/1/35 (j)	230,629		236,325
4.449% 1/1/35 (j)	150,765		153,564
4.482% 3/1/35 (j)	487,545		500,168
4.5% 4/1/20 to 3/1/35	2,055,024		2,001,580
4.503% 2/1/35 (j)	2,048,041		2,075,374
4.505% 3/1/35 (j)	472,927		484,765
4.524% 1/1/35 (j)	149,962		151,308
4.531% 5/1/35 (j)	377,875		385,511
4.532% 7/1/35 (j)	453,220		458,783
4.559% 11/1/34 (j)	408,615		418,050
4.561% 2/1/35 (j)	45,012		45,980
4.565% 2/1/35 (j)	1,480,502		1,518,157
4.569% 10/1/35 (j)	58,587		59,363
4.575% 7/1/35 (j)	507,864		512,466
4.584% 2/1/35 (j)	88,089		90,243
4.599% 2/1/35 (j)	392,565		402,611
4.627% 2/1/35 (j)	3,726,328		3,822,911
4.664% 11/1/34 (j)	481,144		492,896
4.685% 3/1/35 (j)	35,559		36,305
4.694% 10/1/34 (j)	493,779		505,367
4.716% 7/1/34 (j)	387,363		396,242
4.722% 12/1/34 (j)	312,687		320,283
4.768% 12/1/34 (j)	126,914		129,957
4.778% 3/1/35 (j)	845,717		862,744
4.795% 2/1/35 (j)	580,361		586,723
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount		Value
Fannie Mae - continued
4.804% 11/1/34 (j)	$ 392,268		$ 401,613
4.807% 6/1/35 (j)	586,498		594,898
4.858% 10/1/34 (j)	1,636,622		1,677,770
4.885% 10/1/35 (j)	322,351		326,594
4.947% 8/1/34 (j)	1,316,367		1,348,604
5.016% 7/1/34 (j)	68,546		70,102
5.017% 7/1/34 (j)	3,713,590		3,776,468
5.04% 5/1/35 (j)	758,675		771,942
5.059% 9/1/34 (j)	1,080,502		1,107,255
5.07% 2/1/33 (j)	168,721		170,992
5.083% 9/1/34 (j)	136,663		140,062
5.095% 8/1/34 (j)	104,477		105,832
5.11% 1/1/36 (j)	1,021,860		1,040,495
5.133% 5/1/35 (j)	508,267		523,602
5.135% 3/1/35 (j)	67,757		69,643
5.156% 5/1/35 (j)	1,500,470		1,545,638
5.173% 8/1/33 (j)	179,527		183,026
5.195% 5/1/35 (j)	1,632,004		1,683,801
5.195% 6/1/35 (j)	542,821		552,687
5.2% 4/1/36 (j)	2,071,106		2,112,820
5.218% 2/1/35 (j)	43,451		43,866
5.25% 11/1/36 (j)	551,885		564,264
5.309% 12/1/34 (j)	180,832		185,581
5.315% 7/1/35 (j)	67,378		68,615
5.334% 2/1/36 (j)	196,654		200,123
5.462% 2/1/36 (j)	2,539,637		2,626,708
5.5% 9/1/10 to 12/1/14	2,187,467		2,247,844
5.524% 11/1/36 (j)	1,040,119		1,064,127
5.597% 1/1/36 (j)	772,766		800,199
5.638% 7/1/37 (j)	414,759		427,358
5.802% 1/1/36 (j)	527,808		544,794
5.82% 7/1/46 (j)	4,374,636		4,535,950
5.825% 3/1/36 (j)	1,611,760		1,671,194
6% 5/1/16 to 4/1/17	754,778		786,058
6.03% 4/1/36 (j)	309,629		321,046
6.224% 6/1/36 (j)	149,384		153,130
6.307% 4/1/36 (j)	285,456		295,982
6.5% 12/1/13 to 3/1/35	13,822,147		14,451,122
6.56% 9/1/36 (j)	2,032,462		2,107,409
7% 2/1/09 to 6/1/33	1,752,219		1,860,484
7.5% 8/1/17 to 9/1/28	640,205		694,437
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount		Value
Fannie Mae - continued
8.5% 6/1/11 to 9/1/25	$ 104,869		$ 114,911
9.5% 2/1/25	18,807		20,789
10.5% 8/1/20	19,801		23,402
11% 8/1/15	70,518		74,186
12.5% 12/1/13 to 4/1/15	11,820		13,987
TOTAL FANNIE MAE			88,204,011
Freddie Mac - 1.6%
4.174% 1/1/34 (j)	1,556,488		1,573,496
4.299% 12/1/34 (j)	190,596		194,306
4.329% 2/1/35 (j)	303,190		307,942
4.329% 3/1/35 (j)	321,510		328,174
4.375% 2/1/35 (j)	388,928		397,090
4.38% 3/1/35 (j)	152,950		155,175
4.41% 6/1/35 (j)	243,188		246,299
4.419% 3/1/35 (j)	213,305		217,979
4.42% 2/1/34 (j)	162,346		163,499
4.449% 3/1/35 (j)	221,350		226,245
4.536% 2/1/35 (j)	369,406		377,888
4.627% 1/1/35 (j)	310,212		315,537
5.032% 4/1/35 (j)	810,866		824,786
5.061% 3/1/33 (j)	49,552		50,744
5.131% 4/1/35 (j)	948,825		974,547
5.529% 1/1/36 (j)	1,164,305		1,200,133
5.762% 10/1/35 (j)	267,242		275,559
5.848% 6/1/36 (j)	356,597		368,338
6.027% 6/1/36 (j)	344,102		355,254
6.03% 7/1/37 (j)	1,826,945		1,878,118
6.093% 4/1/36 (j)	549,242		568,347
6.1% 6/1/36 (j)	323,394		334,461
6.697% 10/1/36 (j)	1,903,901		1,973,285
6.733% 1/1/37 (j)	2,653,968		2,751,833
6.845% 10/1/36 (j)	2,496,634		2,571,645
8.5% 9/1/24 to 8/1/27	82,498		91,264
10% 5/1/09	439		444
10.5% 5/1/21	6,473		6,686
11% 12/1/11	957		1,020
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount		Value
Freddie Mac - continued
11.5% 10/1/15	$ 5,762		$ 6,657
11.75% 10/1/10	6,077		6,570
TOTAL FREDDIE MAC			18,743,321
Government National Mortgage Association - 3.3%
5.25% 7/20/34 (j)	460,726		468,139
5.5% 3/1/38 (d)	3,000,000		3,068,363
5.5% 3/20/38 (d)	12,000,000		12,273,450
5.5% 3/20/38 (d)	13,000,000		13,296,238
5.5% 3/20/38 (d)	10,000,000		10,227,875
7% 7/15/28 to 11/15/28	477,751		507,992
7.5% 2/15/28 to 10/15/28	8,303		8,910
8% 6/15/24 to 10/15/24	7,240		7,935
8.5% 4/15/17 to 10/15/21	102,765		114,656
11% 7/20/19 to 8/20/19	5,065		6,061
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION			39,979,619
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES (Cost $143,983,344)		146,926,951
Asset-Backed Securities - 0.8%

Advanta Business Card Master Trust Series 2007-D1 Class D, 4.5138% 1/22/13 (c)(j)	1,420,000		1,204,528
AmeriCredit Automobile Receivables Trust Series 2006-1 Class E1, 6.62% 5/6/13 (c)	349,838		227,394
Bear Stearns Asset Backed Securities I Trust Series 2005-HE2 Class M2, 3.885% 2/25/35 (j)	570,000		433,447
Capital Auto Receivables Asset Trust Series 2006-SN1A:
Class B, 5.5% 4/20/10 (c)	245,000		249,544
Class C, 5.77% 5/20/10 (c)	235,000		233,393
Class D, 6.15% 4/20/11 (c)	400,000		396,108
Carrington Mortgage Loan Trust Series 2006-NC3 Class M10, 5.135% 8/25/36 (c)(j)	215,000		15,837
DB Master Finance LLC Series 2006-1 Class M1, 8.285% 6/20/31 (c)	715,000		622,050
Ford Credit Auto Owner Trust:
Series 2006-B Class D, 7.26% 2/15/13 (c)	850,000		691,515
Series 2006-C Class D, 6.89% 5/15/13 (c)	585,000		565,330
Series 2007-A Class D, 7.05% 12/15/13 (c)	310,000		280,066
Asset-Backed Securities - continued
	Principal Amount		Value
GS Auto Loan Trust Series 2006-1 Class D, 6.25% 1/15/14 (c)	$ 890,473		$ 861,951
GSAMP Trust Series 2004-AR1 Class B4, 5% 6/25/34 (c)(j)	142,877		85,726
Long Beach Mortgage Loan Trust Series 2006-7 Class M11, 3.185% 8/25/36 (j)	1,000,000		42,612
Merna Reinsurance Ltd. Series 2007-1 Class B, 6.58% 6/30/12 (c)(j)	1,695,000		1,646,862
Onyx Acceptance Owner Trust Series 2005-B Class A4, 4.34% 5/15/12	1,045,000		951,264
Structured Asset Securities Corp. Series 2006-BC1 Class B1, 5.635% 3/25/36 (c)(j)	700,000		46,419
Wachovia Auto Loan Owner Trust Series 2006-2A Class E, 7.05% 5/20/14 (c)	955,000		775,605
WaMu Asset-Backed Certificates Series 2006-HE5 Class B1, 5.635% 10/25/36 (c)(j)	825,000		64,132
TOTAL ASSET-BACKED SECURITIES (Cost $12,677,574)		9,393,783
Collateralized Mortgage Obligations - 3.8%

Private Sponsor - 0.5%
Chase Mortgage Finance Trust Series 2007-A1 Class 1A5, 4.3545% 2/25/37 (j)	150,743		149,966
Credit Suisse First Boston Mortgage Securities Corp. floater Series 2007-AR7 Class 2A1, 4.6214% 11/25/34 (j)	663,352		655,814
JPMorgan Mortgage Trust Series 2007-A1 Class 3A2, 5.0039% 7/25/35 (j)	692,504		685,928
Provident Funding Mortgage Loan Trust Series 2005-2 Class 3A, 4.9019% 10/25/35 (j)	1,474,016		1,442,083
RESI Finance LP/RESI Finance DE Corp. floater:
Series 2003-B Class B6, 6.015% 7/10/35 (c)(j)	729,217		757,445
Series 2003-CB1:
Class B4, 4.815% 6/10/35 (c)(j)	682,744		619,030
Class B5, 5.415% 6/10/35 (c)(j)	464,266		415,445
Class B6, 5.915% 6/10/35 (c)(j)	277,649		238,681
Structured Asset Securities Corp. floater Series 2006-BC5 Class B, 5.635% 12/25/36 (c)(j)	650,000		53,988
Collateralized Mortgage Obligations - continued
	Principal Amount		Value
Private Sponsor - continued
Wells Fargo Mortgage Backed Securities Trust:
Series 2005-AR12 Class 2A6, 4.334% 7/25/35 (j)	$ 203,125		$ 200,238
Series 2005-AR3 Class 2A1, 4.2009% 3/25/35 (j)	395,660		395,382
TOTAL PRIVATE SPONSOR			5,614,000
U.S. Government Agency - 3.3%
Fannie Mae Grantor Trust floater Series 2005-90 Class FG, 3.385% 10/25/35 (j)	4,601,770		4,561,511
Fannie Mae subordinate REMIC pass-thru certificates:
planned amortization class:
Series 2001-68 Class QZ, 5.5% 12/25/16	1,190,705		1,223,947
Series 2002-9 Class PC, 6% 3/25/17	211,790		219,384
Series 2003-84 Class GC, 4.5% 5/25/15	1,540,000		1,561,042
Series 2005-67 Class HD, 5.5% 12/25/30	2,835,000		2,929,260
Series 2006-4 Class PB, 6% 9/25/35	2,679,999		2,788,404
sequential payer:
Series 2002-56 Class MC, 5.5% 9/25/17	751,396		772,538
Series 2004-3 Class BA, 4% 7/25/17	124,152		124,828
Series 2004-45 Class AV, 4.5% 10/25/22	787,135		783,608
Series 2004-86 Class KC, 4.5% 5/25/19	553,913		560,823
Series 2004-91 Class AH, 4.5% 5/25/29	1,169,673		1,181,973
Freddie Mac planned amortization class Series 2104 Class PG, 6% 12/15/28	1,243,595		1,293,175
Freddie Mac Multi-class participation certificates guaranteed:
planned amortization class:
Series 2356 Class GD, 6% 9/15/16	799,685		832,475
Series 2363 Class PF, 6% 9/15/16	1,097,020		1,141,259
Series 2702 Class WB, 5% 4/15/17	2,480,000		2,523,700
Series 2952 Class EC, 5.5% 11/15/28	2,785,000		2,876,918
Series 3018 Class UD, 5.5% 9/15/30	1,735,000		1,794,949
Series 3033 Class UD, 5.5% 10/15/30	1,075,000		1,112,891
Series 3049 Class DB, 5.5% 6/15/31	2,495,000		2,558,650
Series 3117 Class PC, 5% 6/15/31	4,000,000		4,104,317
sequential payer:
Series 2528 Class HN, 5% 11/15/17	1,515,000		1,543,466
Collateralized Mortgage Obligations - continued
	Principal Amount		Value
U.S. Government Agency - continued
Freddie Mac Multi-class participation certificates guaranteed: - continued
sequential payer:
Series 2777 Class AB, 4.5% 6/15/29	$ 2,700,654		$ 2,731,627
Series 2809 Class UA, 4% 12/15/14	514,091		518,089
TOTAL U.S. GOVERNMENT AGENCY			39,738,834
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $44,756,493)		45,352,834
Commercial Mortgage Securities - 1.3%

Bear Stearns Commercial Mortgage Securities Trust Series 2003-T12 Class X2, 0.6867% 8/13/39 (c)(j)(l)	5,075,475		70,252
Citigroup Commercial Mortgage Trust Series 2007-C6 Class A1, 5.622% 12/10/49 (j)	2,251,530		2,226,875
Citigroup/Deutsche Bank Commercial Mortgage Trust sequential payer Series 2006-CD3 Class A3, 5.607% 10/15/48	3,000,000		2,845,634
Credit Suisse Commercial Mortgage Trust Series 2007-C2 Class A1, 5.269% 1/15/49	548,374		542,857
DLJ Commercial Mortgage Corp. sequential payer Series 1999-CG1 Class A1B, 6.46% 3/10/32	3,701,533		3,725,881
Ginnie Mae guaranteed Multi-family REMIC pass-thru securities sequential payer Series 2002-35 Class C, 5.8734% 10/16/23 (j)	57,600		58,599
Ginnie Mae guaranteed REMIC pass-thru securities sequential payer:
Series 2003-47 Class C, 4.227% 10/16/27	2,198,967		2,219,535
Series 2003-59 Class D, 3.654% 10/16/27	3,060,000		3,042,653
GMAC Commercial Mortgage Securities, Inc. Series 2004-C3 Class X2, 0.8335% 12/10/41 (j)(l)	10,826,622		186,690
LB-UBS Commercial Mortgage Trust sequential payer:
Series 2006-C7 Class A1, 5.279% 11/15/38	342,693		340,162
Series 2007-C2 Class A1, 5.226% 2/15/40	430,275		425,806
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $15,975,672)		15,684,944
Fixed-Income Funds - 49.8%
	Shares		Value
Fidelity 1-3 Year Duration Securitized Bond Central Fund (k)	703,790		$ 63,291,861
Fidelity 2-5 Year Duration Securitized Bond Central Fund (k)	1,092,040		101,679,852
Fidelity Corporate Bond 1-10 Year Central Fund (k)	2,987,685		299,545,287
Fidelity Corporate Bond 1-5 Year Central Fund (k)	187,611		18,937,437
Fidelity Specialized High Income Central Fund (k)	244,311		23,307,235
Fidelity Ultra-Short Central Fund (k)	1,053,506		90,380,296
TOTAL FIXED-INCOME FUNDS (Cost $628,260,150)		597,141,968
Cash Equivalents - 18.1%
	Maturity Amount
Investments in repurchase agreements in a joint trading account at 3.18%, dated 2/29/08 due 3/3/08:
(Collateralized by U.S. Government Obligations) #	115,210,507		115,180,000
(Collateralized by U.S. Government Obligations) # (a)	102,227,083		102,200,000
TOTAL CASH EQUIVALENTS (Cost $217,380,000)		217,380,000
TOTAL INVESTMENT PORTFOLIO - 114.1% (Cost $1,383,122,854)			1,366,680,615
NET OTHER ASSETS - (14.1)%			(168,593,179)
NET ASSETS - 100%		$ 1,198,087,436

Swap Agreements
	Expiration Date	Notional Amount
Credit Default Swaps
Receive monthly notional amount multiplied by 3.35% and pay Morgan Stanley, Inc. upon credit 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	(94,002)
Receive monthly notional amount multiplied by 3.05% and pay Merrill Lynch upon credit 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 B3, 7.2913% 9/25/34	Oct. 2034	142,860	(37,450)
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 credit 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, 6.635% 8/25/34	Sept. 2034	$ 119,548	$ (53,480)
Receive monthly notional amount multiplied by 3.35% and pay Morgan Stanley, Inc. upon credit 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, 7.6913% 7/25/34	August 2034	175,868	(50,532)
Receive from Citibank upon credit event of Merrill Lynch & Co., Inc., par value of the notional amount of Merrill Lynch & Co., Inc. 5% 1/15/15, and pay quarterly notional amount multiplied by .90%	Dec. 2012	900,000	40,595
Receive from Deutsche Bank upon credit event of Hartford Financial Services Group, Inc., par value of the notional amount of Hartford Financial Services Group, Inc. 4.75% 3/1/14, and pay quarterly notional amount multiplied by 1.67%	March 2013	200,000	1,877
Receive from Goldman Sachs upon credit event of Lowe's Companies, Inc., par value of the notional amount of Lowe's Companies, Inc. 8.25% 6/1/10, and pay quarterly notional amount multiplied by 1.07%	March 2013	400,000	1,260
Receive from Lehman Brothers, Inc. upon credit event of Hartford Financial Services Group, Inc., par value of the notional amount of Hartford Financial Services Group, Inc. 4.75% 3/1/14, and pay quarterly notional amount multiplied by 1.67%	March 2013	200,000	1,877
Receive from Lehman Brothers, Inc. upon credit event of Lowe's Companies, Inc., par value of the notional amount of Lowe's Companies, Inc. 8.25% 6/1/10, and pay quarterly notional amount miltiplied by 1.03%	March 2013	400,000	2,011
Swap Agreements - continued
	Expiration Date	Notional Amount	Value
Credit Default Swaps - continued
Receive from Morgan Stanley, Inc. upon credit event of H.J. Heinz Co., par value of the notional amount of H.J. Heinz Co. 6% 3/15/08, and pay quarterly notional amount multiplied by .65%	March 2013	$ 600,000	$ 1,307
Receive monthly a fixed rate of .15% multiplied by the notional amount and pay to Lehman Brothers, Inc. upon each credit event of one of the issues of Dow Jones ABX AA 07-1 Index, par value of the proportional notional amount (i)	Sept. 2037	1,500,000	(1,117,500)
Receive monthly notional amount multiplied by .52% and pay Bank of America upon credit 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	(616,880)
Receive monthly notional amount multiplied by .8% and pay Deutsche Bank upon credit 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	(224,155)
Receive monthly notional amount multiplied by .82% and pay UBS upon credit 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	250,290	(26,920)
Receive monthly notional amount multiplied by .85% and pay Deutsche Bank upon credit 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	(267,312)
Receive monthly notional amount multiplied by .85% and pay UBS upon credit 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	(154,278)
Swap Agreements - continued
	Expiration Date	Notional Amount	Value
Credit Default Swaps - continued
Receive monthly notional amount multiplied by .85% and pay UBS upon credit 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	$ (54,350)
Receive monthly notional amount multiplied by 1.6% and pay Morgan Stanley, Inc. upon credit 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	(198,286)
Receive monthly notional amount multiplied by 1.66% and pay Morgan Stanley, Inc. upon credit 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	(218,940)
Receive monthly notional amount multiplied by 2% and pay Goldman Sachs upon credit 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	(904,278)
Receive monthly notional amount multiplied by 2.5% and pay Credit Suisse First Boston upon credit 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	279,755	(129,614)
Receive monthly notional amount multiplied by 2.54% and pay Merrill Lynch upon credit 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	36,015	(30,594)
Swap Agreements - continued
	Expiration Date	Notional Amount	Value
Credit Default Swaps - continued
Receive monthly notional amount multiplied by 2.61% and pay Goldman Sachs upon credit 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	$ 85,922	$ (27,018)
Receive monthly notional amount multiplied by 2.61% and pay Goldman Sachs upon credit 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	38,517	(32,223)
Receive monthly notional amount multiplied by 2.7% and pay Merrill Lynch, Inc. upon credit 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	(1,527,294)
Receive monthly notional amount multiplied by 3% and pay UBS upon credit 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	(333,194)
Receive monthly notional amount multiplied by 5% and pay Deutsche Bank upon credit 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	(143,079)
Receive monthly notional amount multiplied by 5.55% and pay Deutsche Bank upon credit 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	(582,140)
Receive monthly notional amount multiplied by 6.25% and pay Deutsche Bank upon credit event of Residential Asset Mortgage Products, Inc., par value of the notional amount of Residential Asset Mortgage Products, Inc. Series 2006-RS5, 7.17% 9/25/36	Oct. 2036	700,000	(472,390)
Swap Agreements - continued
	Expiration Date	Notional Amount	Value
Credit Default Swaps - continued
Receive quarterly a fixed rate of .4% multiplied by the notional amount and pay to Merrill Lynch, Inc., upon each credit event of one of the issues of Dow Jones CDX N.A. Investment Grade 4 Index, par value of the proportional notional amount (g)	June 2010	$ 10,000,000	$ (282,614)
Receive quarterly a fixed rate of .45% multiplied by the notional amount and pay to Goldman Sachs, upon each credit event of one of the issues of Dow Jones CDX N.A. Investment Grade 5 Index, par value of the proportional notional amount (h)	Dec. 2010	15,000,000	(499,046)
Receive quarterly a fixed rate of .5% multiplied by the notional amount and pay to Merrill Lynch, Inc., upon each credit event of one of the issues of Dow Jones CDX N.A. Investment Grade 3 Index, par value of the proportional notional amount (f)	March 2010	6,373,600	(132,950)
Receive quarterly notional amount multiplied by .72% and pay Bank of America upon credit event of Alleghany Energy Supply Co. LLC, par value of the notional amount of Alleghany Energy Supply Co. LLC 8.25% 4/15/12	June 2012	1,400,000	(61,461)
Receive quarterly notional amount multiplied by .78% and pay Deutsche Bank upon credit event of Allegheny Energy Supply Co. LLC, par value of the notional amount of Allegheny Energy Supply Co. LLC 8.25% 4/15/12	June 2012	1,405,000	(58,222)
Receive quarterly notional amount multiplied by .97% and pay Citibank upon credit event of Lehman Brothers Holdings, Inc., par value of the notional amount of Lehman Brothers Holdings, Inc. 6.625% 1/18/12	Dec. 2012	900,000	(42,258)
TOTAL CREDIT DEFAULT SWAPS		51,432,375	(8,323,533)
Swap Agreements - continued
	Expiration Date	Notional Amount	Value
Interest Rate Swaps
Receive semi-annually a fixed rate equal to 3.475% and pay quarterly a floating rate based on 3-month LIBOR with Credit Suisse First Boston	Jan. 2013	$ 50,000,000	$ 310,450
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	921,579
Receive semi-annually a fixed rate equal to 4.9375% and pay quarterly a floating rate based on 3-month LIBOR with Lehman Brothers, Inc.	March 2012	25,000,000	2,016,365
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	1,674,866
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	2,268,724
TOTAL INTEREST RATE SWAPS		140,000,000	7,191,984
		$ 191,432,375	$ (1,131,549)

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 $26,500,501 or 2.2% of net assets.

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

(e) Security or a portion of the security has been segregated as collateral for open swap agreements. At the period end, the value of securities pledged amounted to $1,295,626.

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

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

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

(i) Represents a tradable index of credit default swaps on home equity asset-backed debt securities.

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

(k) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. A holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at advisor.fidelity.com. In addition, each Fidelity Central Fund's financial statements are available on the SEC's web site or upon request.

(l) 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
$115,180,000 due 3/03/08 at 3.18%
BNP Paribas Securities Corp.	$ 4,690,437
Banc of America Securities LLC	7,501,506
Bank of America, NA	11,257,050
Barclays Capital, Inc.	56,119,920
ING Financial Markets LLC	11,689,857
J.P. Morgan Securities, Inc.	3,752,350
Societe Generale, New York Branch	9,849,918
UBS Securities LLC	9,380,875
WestLB AG	938,087
	$ 115,180,000
$102,200,000 due 3/03/08 at 3.18%
Banc of America Securities LLC	$ 58,216,783
Bank of America, NA	36,385,490
Barclays Capital, Inc.	7,597,727
	$ 102,200,000

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	$ 2,540,907
Fidelity 2-5 Year Duration Securitized Bond Central Fund	3,834,704
Fidelity Corporate Bond 1-10 Year Central Fund	9,969,220
Fidelity Corporate Bond 1-5 Year Central Fund	571,634
Fidelity Specialized High Income Central Fund	826,024
Fidelity Ultra-Short Central Fund	4,795,016
Total	$ 22,537,505

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	$ 116,678,845	$ 2,540,907	$ 50,523,335	$ 63,291,861	3.3%
Fidelity 2-5 Year Duration Securitized Bond Central Fund	154,867,605	3,834,704	51,902,896	101,679,852	3.1%
Fidelity Corporate Bond 1-10 Year Central Fund	389,723,224	9,969,220	104,780,510	299,545,287	3.9%
Fidelity Corporate Bond 1-5 Year Central Fund	25,963,647	571,634	7,989,467	18,937,437	2.8%
Fidelity Specialized High Income Central Fund	22,875,519	826,024	-	23,307,235	6.5%
Fidelity Ultra-Short Central Fund	218,046,027	7,770,821	118,757,000	90,380,296	1.3%
Total	$ 928,154,867	$ 25,513,310	$ 333,953,208	$ 597,141,968

Other Information

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

United States of America	90.0%
United Kingdom	2.8%
Canada	1.1%
Luxembourg	1.1%
Cayman Islands	1.0%
Others (individually less than 1%)	4.0%
	100.0%

Income Tax Information

At August 31, 2007, the fund had a capital loss carryforward of approximately $8,055,126 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 29, 2008 (Unaudited)

Assets
Investment in securities, at value (including securities loaned of $99,915,610 and repurchase agreements of $217,380,000) - See accompanying schedule: Unaffiliated issuers (cost $754,862,704)	$ 769,538,647
Fidelity Central Funds (cost $628,260,150)	597,141,968
Total Investments (cost $1,383,122,854)		$ 1,366,680,615
Receivable for investments sold		17,349,256
Receivable for swap agreements		25,279
Receivable for fund shares sold		1,236,687
Interest receivable		3,072,669
Distributions receivable from Fidelity Central Funds		2,503,624
Prepaid expenses		3,895
Total assets		1,390,872,025

Liabilities
Payable to custodian bank	$ 75,624
Payable for investments purchased Regular delivery	2,195,353
Delayed delivery	83,957,461
Payable for fund shares redeemed	2,124,846
Distributions payable	268,244
Swap agreements, at value	1,131,549
Accrued management fee	313,096
Distribution fees payable	217,482
Other affiliated payables	226,806
Other payables and accrued expenses	74,128
Collateral on securities loaned, at value	102,200,000
Total liabilities		192,784,589

Net Assets		$ 1,198,087,436
Net Assets consist of:
Paid in capital		$ 1,231,112,064
Undistributed net investment income		441,201
Accumulated undistributed net realized gain (loss) on investments		(16,256,585)
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		(17,209,244)
Net Assets		$ 1,198,087,436

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

Semiannual Report

Financial Statements - continued

Statement of Assets and Liabilities - continued

	February 29, 2008 (Unaudited)

Calculation of Maximum Offering Price Class A: Net Asset Value and redemption price per share ($262,161,950 ÷ 24,428,860 shares)		$ 10.73

Maximum offering price per share (100/97.25 of $10.73)		$ 11.03
Class T: Net Asset Value and redemption price per share ($472,756,530 ÷ 44,030,951 shares)		$ 10.74

Maximum offering price per share (100/97.25 of $10.74)		$ 11.04
Class B: Net Asset Value and offering price per share ($19,543,425 ÷ 1,822,888 shares)^A		$ 10.72

Class C: Net Asset Value and offering price per share ($60,693,663 ÷ 5,665,941 shares)^A		$ 10.71


Institutional Class: Net Asset Value, offering price and redemption price per share ($382,931,868 ÷ 35,604,698 shares)		$ 10.76

^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

Statement of Operations

Six months ended February 29, 2008 (Unaudited)

Investment Income
Interest		$ 14,263,807
Income from Fidelity Central Funds		22,537,505
Total income		36,801,312

Expenses
Management fee	$ 2,225,054
Transfer agent fees	1,345,339
Distribution fees	1,314,871
Accounting and security lending fees	248,070
Custodian fees and expenses	16,690
Independent trustees' compensation	3,068
Registration fees	54,457
Audit	43,542
Legal	4,440
Miscellaneous	5,405
Total expenses before reductions	5,260,936
Expense reductions	(25,161)	5,235,775
Net investment income		31,565,537
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers	13,204,531
Fidelity Central Funds	(19,005,117)
Swap agreements	4,505,032
Total net realized gain (loss)		(1,295,554)
Change in net unrealized appreciation (depreciation) on: Investment securities	15,024,140
Swap agreements	2,329,279
Total change in net unrealized appreciation (depreciation)		17,353,419
Net gain (loss)		16,057,865
Net increase (decrease) in net assets resulting from operations		$ 47,623,402

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

Semiannual Report

Financial Statements - continued

Statement of Changes in Net Assets

	Six months ended February 29, 2008 (Unaudited)	Year ended August 31, 2007
Increase (Decrease) in Net Assets
Operations
Net investment income	$ 31,565,537	$ 71,163,315
Net realized gain (loss)	(1,295,554)	(8,356,241)
Change in net unrealized appreciation (depreciation)	17,353,419	(17,755,133)
Net increase (decrease) in net assets resulting from operations	47,623,402	45,051,941
Distributions to shareholders from net investment income	(34,278,290)	(67,133,368)
Share transactions - net increase (decrease)	(371,180,365)	92,477,521
Total increase (decrease) in net assets	(357,835,253)	70,396,094

Net Assets
Beginning of period	1,555,922,689	1,485,526,595
End of period (including undistributed net investment income of $441,201 and undistributed net investment income of $3,153,954, respectively)	$ 1,198,087,436	$ 1,555,922,689

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

Semiannual Report

Financial Highlights - Class A

	Six months ended February 29, 2008	Years ended August 31,
	(Unaudited)	2007	2006^H	2005^J	2004^J	2003^J	2002^J
Selected Per-Share Data
Net asset value, beginning of period	$ 10.64	$ 10.78	$ 10.87	$ 11.34	$ 11.32	$ 11.06	$ 11.01
Income from Investment Operations
Net investment income^E	.234	.487	.385	.397	.385	.420	.521
Net realized and unrealized gain (loss)	.111	(.167)	(.043)	(.338)	.120	.254	.055
Total from investment operations	.345	.320	.342	.059	.505	.674	.576
Distributions from net investment income	(.255)	(.460)	(.382)	(.379)	(.385)	(.414)	(.526)
Distributions from net realized gain	-	-	(.050)	(.150)	(.100)	-	-
Total distributions	(.255)	(.460)	(.432)	(.529)	(.485)	(.414)	(.526)
Net asset value, end of period	$ 10.73	$ 10.64	$ 10.78	$ 10.87	$ 11.34	$ 11.32	$ 11.06
Total Return^B,C,D	3.27%	2.99%	3.23%	.54%	4.58%	6.16%	5.44%
Ratios to Average Net Assets^F,I
Expenses before reductions	.85%^A	.79%	.75%^A	.81%	.84%	.81%	.83%
Expenses net of fee waivers, if any	.85%^A	.79%	.75%^A	.81%	.84%	.81%	.83%
Expenses net of all reductions	.84%^A	.78%	.74%^A	.80%	.84%	.81%	.82%
Net investment income	4.39%^A	4.52%	4.30%^A	3.60%	3.42%	3.72%	4.82%
Supplemental Data
Net assets, end of period (000 omitted)	$ 262,162	$ 255,591	$ 229,490	$ 219,441	$ 186,748	$ 166,701	$ 133,236
Portfolio turnover rate^G	88%^A	89%^K	43%^A	73%	96%	108%	121%

^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 reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. ^J For the period ended October 31. ^K Portfolio turnover rate excludes securities received or delivered in-kind.

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

Semiannual Report

Financial Highlights - Class T

	Six months ended February 29, 2008	Years ended August 31,
	(Unaudited)	2007	2006^H	2005^J	2004^J	2003^J	2002^J
Selected Per-Share Data
Net asset value, beginning of period	$ 10.64	$ 10.79	$ 10.88	$ 11.35	$ 11.32	$ 11.06	$ 11.02
Income from Investment Operations
Net investment income^E	.235	.484	.377	.386	.374	.408	.508
Net realized and unrealized gain (loss)	.121	(.178)	(.043)	(.338)	.130	.253	.044
Total from investment operations	.356	.306	.334	.048	.504	.661	.552
Distributions from net investment income	(.256)	(.456)	(.374)	(.368)	(.374)	(.401)	(.512)
Distributions from net realized gain	-	-	(.050)	(.150)	(.100)	-	-
Total distributions	(.256)	(.456)	(.424)	(.518)	(.474)	(.401)	(.512)
Net asset value, end of period	$ 10.74	$ 10.64	$ 10.79	$ 10.88	$ 11.35	$ 11.32	$ 11.06
Total Return^B,C,D	3.38%	2.85%	3.15%	.43%	4.56%	6.03%	5.21%
Ratios to Average Net Assets^F,I
Expenses before reductions	.82%^A	.82%	.84%^A	.91%	.95%	.93%	.95%
Expenses net of fee waivers, if any	.82%^A	.82%	.84%^A	.91%	.95%	.93%	.95%
Expenses net of all reductions	.82%^A	.82%	.83%^A	.91%	.95%	.93%	.95%
Net investment income	4.42%^A	4.48%	4.21%^A	3.49%	3.32%	3.60%	4.70%
Supplemental Data
Net assets, end of period (000 omitted)	$ 472,757	$ 503,737	$ 563,677	$ 622,245	$ 680,947	$ 711,263	$ 684,618
Portfolio turnover rate^G	88%^A	89%^K	43%^A	73%	96%	108%	121%

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

Semiannual Report

Financial Highlights - Class B

	Six months ended February 29, 2008	Years ended August 31,
	(Unaudited)	2007	2006^H	2005^J	2004^J	2003^J	2002^J
Selected Per-Share Data
Net asset value, beginning of period	$ 10.63	$ 10.77	$ 10.86	$ 11.33	$ 11.31	$ 11.05	$ 11.01
Income from Investment Operations
Net investment income^E	.197	.409	.316	.310	.295	.331	.436
Net realized and unrealized gain (loss)	.111	(.169)	(.043)	(.338)	.120	.253	.044
Total from investment operations	.308	.240	.273	(.028)	.415	.584	.480
Distributions from net investment income	(.218)	(.380)	(.313)	(.292)	(.295)	(.324)	(.440)
Distributions from net realized gain	-	-	(.050)	(.150)	(.100)	-	-
Total distributions	(.218)	(.380)	(.363)	(.442)	(.395)	(.324)	(.440)
Net asset value, end of period	$ 10.72	$ 10.63	$ 10.77	$ 10.86	$ 11.33	$ 11.31	$ 11.05
Total Return^B,C,D	2.92%	2.24%	2.57%	(.25) %	3.75%	5.32%	4.52%
Ratios to Average Net Assets^F,I
Expenses before reductions	1.53%^A	1.52%	1.52%^A	1.61%	1.66%	1.60%	1.61%
Expenses net of fee waivers, if any	1.53%^A	1.52%	1.52%^A	1.60%	1.65%	1.60%	1.61%
Expenses net of all reductions	1.53%^A	1.52%	1.52%^A	1.60%	1.65%	1.60%	1.61%
Net investment income	3.71%^A	3.78%	3.52%^A	2.80%	2.62%	2.92%	4.03%
Supplemental Data
Net assets, end of period (000 omitted)	$ 19,543	$ 22,609	$ 46,344	$ 73,017	$ 118,751	$ 154,697	$ 178,062
Portfolio turnover rate^G	88%^A	89%^K	43%^A	73%	96%	108%	121%

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

Semiannual Report

Financial Highlights - Class C

	Six months ended February 29, 2008	Years ended August 31,
	(Unaudited)	2007	2006^H	2005^J	2004^J	2003^J	2002^J
Selected Per-Share Data
Net asset value, beginning of period	$ 10.62	$ 10.76	$ 10.85	$ 11.32	$ 11.30	$ 11.04	$ 11.00
Income from Investment Operations
Net investment income^E	.194	.400	.308	.301	.289	.322	.428
Net realized and unrealized gain (loss)	.111	(.167)	(.042)	(.337)	.120	.254	.044
Total from investment operations	.305	.233	.266	(.036)	.409	.576	.472
Distributions from net investment income	(.215)	(.373)	(.306)	(.284)	(.289)	(.316)	(.432)
Distributions from net realized gain	-	-	(.050)	(.150)	(.100)	-	-
Total distributions	(.215)	(.373)	(.356)	(.434)	(.389)	(.316)	(.432)
Net asset value, end of period	$ 10.71	$ 10.62	$ 10.76	$ 10.85	$ 11.32	$ 11.30	$ 11.04
Total Return^B,C,D	2.90%	2.18%	2.51%	(.33)%	3.70%	5.26%	4.45%
Ratios to Average Net Assets^F,I
Expenses before reductions	1.59%^A	1.59%	1.60%^A	1.67%	1.70%	1.67%	1.68%
Expenses net of fee waivers, if any	1.59%^A	1.59%	1.60%^A	1.67%	1.70%	1.67%	1.68%
Expenses net of all reductions	1.59%^A	1.58%	1.60%^A	1.67%	1.70%	1.67%	1.68%
Net investment income	3.65%^A	3.72%	3.45%^A	2.73%	2.57%	2.86%	3.96%
Supplemental Data
Net assets, end of period (000 omitted)	$ 60,694	$ 58,693	$ 63,946	$ 74,522	$ 91,149	$ 113,849	$ 98,158
Portfolio turnover rate^G	88%^A	89%^K	43%^A	73%	96%	108%	121%

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

Semiannual Report

Financial Highlights - Institutional Class

	Six months ended February 29, 2008	Years ended August 31,
	(Unaudited)	2007	2006^G	2005^I	2004^I	2003^I	2002^I
Selected Per-Share Data
Net asset value, beginning of period	$ 10.66	$ 10.80	$ 10.89	$ 11.36	$ 11.34	$ 11.08	$ 11.03
Income from Investment Operations
Net investment income^D	.252	.513	.401	.417	.400	.437	.539
Net realized and unrealized gain (loss)	.119	(.169)	(.043)	(.339)	.122	.254	.053
Total from investment operations	.371	.344	.358	.078	.522	.691	.592
Distributions from net investment income	(.271)	(.484)	(.398)	(.398)	(.402)	(.431)	(.542)
Distributions from net realized gain	-	-	(.050)	(.150)	(.100)	-	-
Total distributions	(.271)	(.484)	(.448)	(.548)	(.502)	(.431)	(.542)
Net asset value, end of period	$ 10.76	$ 10.66	$ 10.80	$ 10.89	$ 11.36	$ 11.34	$ 11.08
Total Return^B,C	3.52%	3.22%	3.37%	.71%	4.72%	6.30%	5.59%
Ratios to Average Net Assets^E,H
Expenses before reductions	.54%^A	.55%	.57%^A	.63%	.70%	.66%	.67%
Expenses net of fee waivers, if any	.54%^A	.55%	.57%^A	.63%	.70%	.66%	.67%
Expenses net of all reductions	.53%^A	.55%	.57%^A	.63%	.70%	.66%	.67%
Net investment income	4.70%^A	4.75%	4.48%^A	3.77%	3.57%	3.87%	4.97%
Supplemental Data
Net assets, end of period (000 omitted)	$ 382,932	$ 715,292	$ 582,070	$ 465,201	$ 269,727	$ 155,302	$ 114,546
Portfolio turnover rate^F	88%^A	89%^J	43%^A	73%	96%	108%	121%

^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 reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
^I For the period ended October 31. ^J Portfolio turnover rate excludes securities received or delivered in-kind.

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

Semiannual Report

Notes to Financial Statements

For the period ended February 29, 2008 (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.

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.

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.

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.

Futures

Repurchase Agreements

Restricted Securities

Swap Agreements

Semiannual Report

2. Investments in Fidelity Central Funds - continued

Fidelity Central Fund	Investment Manager	Investment Objective	Investment Practices
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.	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.	Loans & Direct Debt Instruments Repurchase Agreements Restricted Securities

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 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.

Futures

Repurchase Agreements

Restricted Securities

Swap Agreements

A holdings listing for the Fund, which presents direct holdings as well as the pro rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at advisor.fidelity.com. A complete list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request

3. Significant Accounting Policies.

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. 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

Semiannual Report

3. Significant Accounting Policies - continued

Security Valuation - continued

as available dealer supplied prices. Certain of the Fund's securities may be valued by a single source or dealer.

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. Factors used in the determination of fair value may include current market trading activity, interest rates, credit quality and default rates. 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. Actual prices received at disposition may differ.

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. Interest income and distributions from the Fidelity Central Funds are accrued as earned. 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.

Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service.

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 the short-term gain distributions from the Fidelity Central Funds, 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 and excise tax regulations.

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

Unrealized appreciation	$ 20,905,822
Unrealized depreciation	(37,004,483)
Net unrealized appreciation (depreciation)	$ (16,098,661)
Cost for federal income tax purposes	$ 1,382,779,276

New Accounting Pronouncements. 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 results in expanded disclosures about fair value measurements.

In addition, in March 2008, Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities (SFAS 161), was issued and is effective for fiscal years beginning after November 15, 2008. SFAS 161 requires enhanced disclosures to provide information about the reasons the Fund invests in derivative instruments, the accounting treatment and the affect derivatives have on financial performance. Management is currently evaluating the impact the adoption of SFAS 161 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.

Interest rate swaps are agreements to exchange cash flows periodically based on a notional principal amount, for example, the exchange of fixed rate interest payments for floating rate interest payments. The primary risk associated with interest rate swaps is that unfavorable changes in the fluctuation of interest rates could adversely impact a fund.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

4. Operating Policies - continued

Swap Agreements - continued

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 no-tional 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.

Swaps are marked-to-market daily based on dealer-supplied valuations and changes in value are recorded as unrealized appreciation (depreciation). Periodic payments and premiums received or made by the Fund are recorded in the accompanying Statement of Operations as realized gains or losses, respectively. 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".

5. Purchases and Sales of Investments.

Purchases and sales of securities (including the Fixed-Income Central Funds), other than short-term securities and U.S. government securities, aggregated $65,287,976 and $342,853,091, 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.

Semiannual Report

6. Fees and Other Transactions with Affiliates - continued

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

	Distribution Fee	Service Fee	Paid to FDC	Retained by FDC
Class A	0%	.25%	$ 320,285	$ -
Class T	0%	.25%	609,545	-
Class B	.65%	.25%	91,013	65,732
Class C	.75%	.25%	294,028	-
			$ 1,314,871	$ 65,732

Sales Load. FDC receives a front-end sales charge of up to 2.75% for selling Class A shares and 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.

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

	Retained by FDC
Class A	$ 12,098
Class T	8,857
Class B*	12,825
Class C*	3,159
	$ 36,939

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

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

6. Fees and Other Transactions with Affiliates - continued

Transfer Agent Fees - continued

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	$ 287,575	.23
Class T	484,614	.20
Class B	25,310	.25
Class C	62,788	.21
Institutional Class	485,052	.17
	$ 1,345,339

* Annualized

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

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 $1,810 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

8. Security Lending - continued

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 $513,010.

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 $1,543. During the period, credits reduced each class' transfer agent expense as noted in the table below.

	Transfer Agent expense reduction
Class A	$ 8,283
Class T	7,696
Class C	954
Institutional Class	6,685
	$ 23,618

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.

The Fidelity Advisor Freedom Funds were the owners of record, in the aggregate, of approximately 21% of the total outstanding shares of the Fund.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

11. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

	Six months ended February 29, 2008	Year ended August 31, 2007
From net investment income
Class A	$ 6,098,390	$ 10,370,477
Class T	11,661,736	22,730,353
Class B	412,996	1,169,158
Class C	1,182,505	2,124,376
Institutional Class	14,922,663	30,739,004
Total	$ 34,278,290	$ 67,133,368

12. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
	Six months ended February 29, 2008	Year ended August 31, 2007	Six months ended February 29, 2008	Year ended August 31, 2007
Class A
Shares sold	4,357,113	10,574,585	$ 46,639,267	$ 114,058,074
Reinvestment of distributions	496,146	820,864	5,305,048	8,855,890
Shares redeemed	(4,454,610)	(8,653,270)	(47,618,018)	(93,273,700)
Net increase (decrease)	398,649	2,742,179	$ 4,326,297	$ 29,640,264
Class T
Shares sold	6,353,318	13,148,613	$ 68,098,707	$ 141,957,847
Reinvestment of distributions	1,032,174	1,987,509	11,042,142	21,458,242
Shares redeemed	(10,692,651)	(20,062,229)	(114,457,267)	(216,499,859)
Net increase (decrease)	(3,307,159)	(4,926,107)	$ (35,316,418)	$ (53,083,770)
Class B
Shares sold	366,890	600,059	$ 3,931,765	$ 6,457,505
Reinvestment of distributions	33,952	92,579	362,663	999,355
Shares redeemed	(705,544)	(2,868,103)	(7,538,930)	(30,956,416)
Net increase (decrease)	(304,702)	(2,175,465)	$ (3,244,502)	$ (23,499,556)
Class C
Shares sold	820,667	1,488,943	$ 8,789,241	$ 16,006,140
Reinvestment of distributions	90,835	163,983	969,423	1,766,938
Shares redeemed	(773,712)	(2,066,746)	(8,264,722)	(22,267,059)
Net increase (decrease)	137,790	(413,820)	$ 1,493,942	$ (4,493,981)

Semiannual Report

12. Share Transactions - continued

	Shares		Dollars
	Six months ended February 29, 2008	Year ended August 31, 2007	Six months ended February 29, 2008	Year ended August 31, 2007
Institutional Class
Shares sold	3,399,817	19,511,051	$ 36,412,216	$ 211,209,559
Reinvestment of distributions	1,328,051	2,781,278	14,219,162	30,063,141
Shares redeemed	(36,234,015)	(9,069,558)	(389,071,062)	(97,358,136)
Net increase (decrease)	(31,506,147)	13,222,771	$ (338,439,684)	$ 143,914,564

13. Credit Risk.

The Fund invests a portion of its assets, directly or indirectly, in structured securities of issuers that hold mortgage securities, including securities backed by subprime mortgage loans. The value and related income of these securities is sensitive to changes in economic conditions, including delinquencies and/or defaults. Continuing shifts in the market's perception of credit quality on securities backed by subprime mortgage loans have resulted in increased volatility of market price and periods of illiquidity that have adversely impacted the valuation of certain issuers of the Fund.

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

Fidelity Research & Analysis Company

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-0408
1.784888.105

(Fidelity Investment logo)(registered trademark)

(Fidelity Investment logo)(registered trademark)
Fidelity® Advisor
Intermediate Bond
Fund - Institutional Class

Semiannual Report

February 29, 2008

(2_fidelity_logos) (Registered_Trademark)

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 LLC or an affiliated company.

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

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Chairman's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

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, 2007 to February 29, 2008).

Actual Expenses

Hypothetical Example for Comparison Purposes

Semiannual Report

	Beginning Account Value September 1, 2007	Ending Account Value February 29, 2008	Expenses Paid During Period* September 1, 2007 to February 29, 2008
Class A
Actual	$ 1,000.00	$ 1,032.70	$ 4.30
Hypothetical^A	$ 1,000.00	$ 1,020.64	$ 4.27
Class T
Actual	$ 1,000.00	$ 1,033.80	$ 4.15
Hypothetical^A	$ 1,000.00	$ 1,020.79	$ 4.12
Class B
Actual	$ 1,000.00	$ 1,029.20	$ 7.72
Hypothetical^A	$ 1,000.00	$ 1,017.26	$ 7.67
Class C
Actual	$ 1,000.00	$ 1,029.00	$ 8.02
Hypothetical^A	$ 1,000.00	$ 1,016.96	$ 7.97
Institutional Class
Actual	$ 1,000.00	$ 1,035.20	$ 2.73
Hypothetical^A	$ 1,000.00	$ 1,022.18	$ 2.72

A 5% return per year before expenses

	Annualized Expense Ratio
Class A	.85%
Class T	.82%
Class B	1.53%
Class C	1.59%
Institutional Class	.54%

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 the investments in each Fidelity Central Fund.

Quality Diversification (% of fund's net assets)
As of February 29, 2008		As of August 31, 2007
	U.S. Government and U.S. Government Agency Obligations 41.4%		U.S. Government and U.S. Government Agency Obligations 41.0%
	AAA 13.0%		AAA 17.0%
	AA 6.1%		AA 7.9%
	A 10.1%		A 7.6%
	BBB 17.7%		BBB 19.9%
	BB and Below 4.1%		BB and Below 4.1%
	Not Rated 0.5%		Not Rated 0.5%
	Short-Term Investments and Net Other Assets 7.1%		Short-Term Investments and Net Other Assets 2.0%

Weighted Average Maturity as of February 29, 2008
		6 months ago
Years	4.3	3.8

Duration as of February 29, 2008
		6 months ago
Years	3.9	3.6

Asset Allocation (% of fund's net assets)
As of February 29, 2008 *			As of August 31, 2007 **
	Corporate Bonds 32.7%			Corporate Bonds 30.2%
	U.S. Government and U.S. Government Agency Obligations 41.4%			U.S. Government and U.S. Government Agency Obligations 41.0%
	Asset-Backed Securities 6.1%			Asset-Backed Securities 11.3%
	CMOs and Other Mortgage Related Securities 12.3%			CMOs and Other Mortgage Related Securities 14.9%
	Other Investments 0.4%			Other Investments 0.6%
	Short-Term Investments and Net Other Assets 7.1%			Short-Term Investments and Net Other Assets 2.0%
* Foreign investments		10.0%	** Foreign investments		9.7%
* Futures and Swaps		18.1%	** Futures and Swaps		18.0%

Semiannual Report

Investments February 29, 2008 (Unaudited)

Showing Percentage of Net Assets

Nonconvertible Bonds - 5.8%
	Principal Amount		Value
CONSUMER DISCRETIONARY - 0.3%
Media - 0.3%
Time Warner Cable, Inc. 5.85% 5/1/17	$ 1,328,000		$ 1,312,162
Univision Communications, Inc. 3.875% 10/15/08	1,680,000		1,631,700
Viacom, Inc. 6.125% 10/5/17	905,000		904,617
			3,848,479
CONSUMER STAPLES - 0.6%
Beverages - 0.2%
Diageo Capital PLC 5.75% 10/23/17	1,678,000		1,727,142
Food & Staples Retailing - 0.2%
CVS Caremark Corp. 6.302% 6/1/37 (j)	2,510,000		2,381,104
Food Products - 0.1%
Kraft Foods, Inc. 6.125% 2/1/18	1,012,000		1,024,845
Tobacco - 0.1%
Reynolds American, Inc. 7.25% 6/15/37	1,575,000		1,544,591
TOTAL CONSUMER STAPLES			6,677,682
ENERGY - 0.6%
Oil, Gas & Consumable Fuels - 0.6%
Anadarko Petroleum Corp. 6.45% 9/15/36	540,000		547,061
Gazstream SA 5.625% 7/22/13 (c)	1,977,858		1,959,069
Nexen, Inc. 6.4% 5/15/37	1,015,000		982,236
NGPL PipeCo LLC 6.514% 12/15/12 (c)	800,000		840,714
Talisman Energy, Inc. yankee 6.25% 2/1/38	635,000		593,526
Texas Eastern Transmission LP 6% 9/15/17 (c)	1,138,000		1,192,974
Transcontinental Gas Pipe Line Corp. 6.4% 4/15/16	525,000		527,625
Valero Energy Corp. 6.625% 6/15/37	745,000		734,013
			7,377,218
FINANCIALS - 2.4%
Capital Markets - 0.3%
BlackRock, Inc. 6.25% 9/15/17	1,720,000		1,814,179
Goldman Sachs Group, Inc. 6.75% 10/1/37	1,280,000		1,195,040
			3,009,219
Commercial Banks - 0.6%
Credit Suisse First Boston 6% 2/15/18	1,505,000		1,535,740
Standard Chartered Bank 6.4% 9/26/17 (c)	3,181,000		3,300,494
Wells Fargo & Co. 5.625% 12/11/17	2,063,000		2,139,733
			6,975,967
Nonconvertible Bonds - continued
	Principal Amount		Value
FINANCIALS - continued
Consumer Finance - 0.6%
American General Finance Corp. 6.9% 12/15/17	$ 960,000		$ 964,792
General Electric Capital Corp.:
5.625% 9/15/17	1,130,000		1,162,135
6.375% 11/15/67 (j)	1,700,000		1,729,903
SLM Corp.:
3.4713% 7/27/09 (j)	531,000		476,820
3.4913% 7/26/10 (j)	2,025,000		1,747,154
4% 1/15/09	465,000		448,297
4.5% 7/26/10	1,025,000		949,029
			7,478,130
Diversified Financial Services - 0.2%
TECO Finance, Inc. 7% 5/1/12 (c)	1,500,000		1,617,476
ZFS Finance USA Trust V 6.5% 5/9/67 (c)(j)	805,000		728,390
			2,345,866
Insurance - 0.4%
American International Group, Inc. 5.85% 1/16/18	2,025,000		2,020,314
Pennsylvania Mutual Life Insurance Co. 6.65% 6/15/34 (c)	3,000,000		3,210,498
			5,230,812
Real Estate Investment Trusts - 0.2%
Duke Realty LP:
5.95% 2/15/17	110,000		97,548
6.5% 1/15/18	855,000		782,466
Liberty Property LP 6.625% 10/1/17	645,000		631,120
UDR, Inc. 5.5% 4/1/14	1,470,000		1,398,711
			2,909,845
Real Estate Management & Development - 0.1%
ERP Operating LP 5.75% 6/15/17	790,000		709,802
TOTAL FINANCIALS			28,659,641
HEALTH CARE - 0.2%
Pharmaceuticals - 0.2%
AstraZeneca PLC:
5.9% 9/15/17	930,000		999,378
6.45% 9/15/37	695,000		747,010
			1,746,388
Nonconvertible Bonds - continued
	Principal Amount		Value
INDUSTRIALS - 0.8%
Aerospace & Defense - 0.1%
Bombardier, Inc. 6.3% 5/1/14 (c)	$ 1,575,000		$ 1,496,250
Airlines - 0.4%
American Airlines, Inc. pass thru trust certificates 7.324% 4/15/11	500,000		487,500
Delta Air Lines, Inc. pass thru trust certificates 7.57% 11/18/10	2,520,000		2,528,316
United Air Lines, Inc. pass-thru trust certificates:
7.032% 4/1/12	684,271		684,271
7.186% 10/1/12	1,700,418		1,695,113
			5,395,200
Industrial Conglomerates - 0.3%
General Electric Co. 5.25% 12/6/17	3,100,000		3,111,303
TOTAL INDUSTRIALS			10,002,753
UTILITIES - 0.9%
Electric Utilities - 0.7%
Commonwealth Edison Co. 5.4% 12/15/11	927,000		955,881
Duke Energy Carolinas LLC 5.25% 1/15/18	710,000		729,765
EDP Finance BV 6% 2/2/18 (c)	1,295,000		1,321,081
Enel Finance International SA 6.25% 9/15/17 (c)	679,000		712,254
Nevada Power Co. 6.5% 5/15/18	3,950,000		4,009,250
			7,728,231
Independent Power Producers & Energy Traders - 0.1%
TXU Corp. 5.55% 11/15/14	1,645,000		1,299,550
Multi-Utilities - 0.1%
CMS Energy Corp. 6.55% 7/17/17	1,740,000		1,730,221
TOTAL UTILITIES			10,758,002
TOTAL NONCONVERTIBLE BONDS (Cost $69,208,548)		69,070,163
U.S. Government and Government Agency Obligations - 22.2%

U.S. Government Agency Obligations - 5.1%
Fannie Mae:
4.375% 7/17/13	4,850,000		5,066,329
5% 2/16/12	18,000,000		19,272,204
U.S. Government and Government Agency Obligations - continued
	Principal Amount		Value
U.S. Government Agency Obligations - continued
Federal Home Loan Bank 5.375% 8/19/11	$ 10,035,000		$ 10,861,794
Freddie Mac 5.25% 7/18/11	24,105,000		25,888,433
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS			61,088,760
U.S. Treasury Inflation Protected Obligations - 8.0%
U.S. Treasury Inflation-Indexed Notes:
2% 4/15/12	5,175,400		5,605,631
2% 1/15/14 (b)	43,423,468		47,134,961
2% 7/15/14 (b)	28,971,540		31,513,459
2.625% 7/15/17	10,134,300		11,561,304
TOTAL U.S. TREASURY INFLATION PROTECTED OBLIGATIONS			95,815,355
U.S. Treasury Obligations - 9.1%
U.S. Treasury Notes:
2.75% 2/28/13 (d)	16,690,000		16,865,275
2.875% 1/31/13 (d)	11,351,000		11,548,450
4.25% 8/15/14 (e)	50,000,000		53,984,407
4.25% 11/15/17 (b)	25,000,000		26,427,725
TOTAL U.S. TREASURY OBLIGATIONS			108,825,857
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $250,881,073)		265,729,972
U.S. Government Agency - Mortgage Securities - 12.3%

Fannie Mae - 7.4%
3.699% 10/1/33 (j)	149,042		151,421
3.75% 9/1/33 (j)	599,548		607,385
3.75% 10/1/33 (j)	138,001		139,207
3.75% 1/1/34 (j)	137,134		138,767
3.785% 6/1/34 (j)	694,826		706,551
3.807% 4/1/33 (j)	352,604		355,566
3.843% 10/1/33 (j)	3,374,691		3,425,423
3.907% 5/1/33 (j)	41,944		42,521
4% 8/1/18	2,691,426		2,650,431
4.073% 10/1/18 (j)	89,867		90,888
4.172% 1/1/35 (j)	311,566		317,930
4.175% 4/1/33 (j)	23,415		23,744
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount		Value
Fannie Mae - continued
4.237% 1/1/34 (j)	$ 370,715		$ 375,272
4.25% 2/1/35 (j)	151,280		154,600
4.264% 10/1/33 (j)	58,626		59,575
4.288% 6/1/33 (j)	66,876		67,963
4.302% 3/1/33 (j)	66,817		68,154
4.33% 4/1/35 (j)	66,425		67,434
4.344% 1/1/35 (j)	167,065		171,011
4.347% 3/1/35 (j)	117,256		119,093
4.358% 2/1/34 (j)	280,778		284,498
4.365% 8/1/33 (j)	233,311		235,470
4.373% 5/1/35 (j)	119,868		122,115
4.373% 5/1/35 (j)	91,954		93,275
4.391% 2/1/35 (j)	242,855		248,680
4.413% 12/1/33 (j)	6,101,766		6,239,361
4.418% 8/1/34 (j)	393,308		398,656
4.424% 3/1/33 (j)	97,717		99,934
4.434% 3/1/35 (j)	230,629		236,325
4.449% 1/1/35 (j)	150,765		153,564
4.482% 3/1/35 (j)	487,545		500,168
4.5% 4/1/20 to 3/1/35	2,055,024		2,001,580
4.503% 2/1/35 (j)	2,048,041		2,075,374
4.505% 3/1/35 (j)	472,927		484,765
4.524% 1/1/35 (j)	149,962		151,308
4.531% 5/1/35 (j)	377,875		385,511
4.532% 7/1/35 (j)	453,220		458,783
4.559% 11/1/34 (j)	408,615		418,050
4.561% 2/1/35 (j)	45,012		45,980
4.565% 2/1/35 (j)	1,480,502		1,518,157
4.569% 10/1/35 (j)	58,587		59,363
4.575% 7/1/35 (j)	507,864		512,466
4.584% 2/1/35 (j)	88,089		90,243
4.599% 2/1/35 (j)	392,565		402,611
4.627% 2/1/35 (j)	3,726,328		3,822,911
4.664% 11/1/34 (j)	481,144		492,896
4.685% 3/1/35 (j)	35,559		36,305
4.694% 10/1/34 (j)	493,779		505,367
4.716% 7/1/34 (j)	387,363		396,242
4.722% 12/1/34 (j)	312,687		320,283
4.768% 12/1/34 (j)	126,914		129,957
4.778% 3/1/35 (j)	845,717		862,744
4.795% 2/1/35 (j)	580,361		586,723
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount		Value
Fannie Mae - continued
4.804% 11/1/34 (j)	$ 392,268		$ 401,613
4.807% 6/1/35 (j)	586,498		594,898
4.858% 10/1/34 (j)	1,636,622		1,677,770
4.885% 10/1/35 (j)	322,351		326,594
4.947% 8/1/34 (j)	1,316,367		1,348,604
5.016% 7/1/34 (j)	68,546		70,102
5.017% 7/1/34 (j)	3,713,590		3,776,468
5.04% 5/1/35 (j)	758,675		771,942
5.059% 9/1/34 (j)	1,080,502		1,107,255
5.07% 2/1/33 (j)	168,721		170,992
5.083% 9/1/34 (j)	136,663		140,062
5.095% 8/1/34 (j)	104,477		105,832
5.11% 1/1/36 (j)	1,021,860		1,040,495
5.133% 5/1/35 (j)	508,267		523,602
5.135% 3/1/35 (j)	67,757		69,643
5.156% 5/1/35 (j)	1,500,470		1,545,638
5.173% 8/1/33 (j)	179,527		183,026
5.195% 5/1/35 (j)	1,632,004		1,683,801
5.195% 6/1/35 (j)	542,821		552,687
5.2% 4/1/36 (j)	2,071,106		2,112,820
5.218% 2/1/35 (j)	43,451		43,866
5.25% 11/1/36 (j)	551,885		564,264
5.309% 12/1/34 (j)	180,832		185,581
5.315% 7/1/35 (j)	67,378		68,615
5.334% 2/1/36 (j)	196,654		200,123
5.462% 2/1/36 (j)	2,539,637		2,626,708
5.5% 9/1/10 to 12/1/14	2,187,467		2,247,844
5.524% 11/1/36 (j)	1,040,119		1,064,127
5.597% 1/1/36 (j)	772,766		800,199
5.638% 7/1/37 (j)	414,759		427,358
5.802% 1/1/36 (j)	527,808		544,794
5.82% 7/1/46 (j)	4,374,636		4,535,950
5.825% 3/1/36 (j)	1,611,760		1,671,194
6% 5/1/16 to 4/1/17	754,778		786,058
6.03% 4/1/36 (j)	309,629		321,046
6.224% 6/1/36 (j)	149,384		153,130
6.307% 4/1/36 (j)	285,456		295,982
6.5% 12/1/13 to 3/1/35	13,822,147		14,451,122
6.56% 9/1/36 (j)	2,032,462		2,107,409
7% 2/1/09 to 6/1/33	1,752,219		1,860,484
7.5% 8/1/17 to 9/1/28	640,205		694,437
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount		Value
Fannie Mae - continued
8.5% 6/1/11 to 9/1/25	$ 104,869		$ 114,911
9.5% 2/1/25	18,807		20,789
10.5% 8/1/20	19,801		23,402
11% 8/1/15	70,518		74,186
12.5% 12/1/13 to 4/1/15	11,820		13,987
TOTAL FANNIE MAE			88,204,011
Freddie Mac - 1.6%
4.174% 1/1/34 (j)	1,556,488		1,573,496
4.299% 12/1/34 (j)	190,596		194,306
4.329% 2/1/35 (j)	303,190		307,942
4.329% 3/1/35 (j)	321,510		328,174
4.375% 2/1/35 (j)	388,928		397,090
4.38% 3/1/35 (j)	152,950		155,175
4.41% 6/1/35 (j)	243,188		246,299
4.419% 3/1/35 (j)	213,305		217,979
4.42% 2/1/34 (j)	162,346		163,499
4.449% 3/1/35 (j)	221,350		226,245
4.536% 2/1/35 (j)	369,406		377,888
4.627% 1/1/35 (j)	310,212		315,537
5.032% 4/1/35 (j)	810,866		824,786
5.061% 3/1/33 (j)	49,552		50,744
5.131% 4/1/35 (j)	948,825		974,547
5.529% 1/1/36 (j)	1,164,305		1,200,133
5.762% 10/1/35 (j)	267,242		275,559
5.848% 6/1/36 (j)	356,597		368,338
6.027% 6/1/36 (j)	344,102		355,254
6.03% 7/1/37 (j)	1,826,945		1,878,118
6.093% 4/1/36 (j)	549,242		568,347
6.1% 6/1/36 (j)	323,394		334,461
6.697% 10/1/36 (j)	1,903,901		1,973,285
6.733% 1/1/37 (j)	2,653,968		2,751,833
6.845% 10/1/36 (j)	2,496,634		2,571,645
8.5% 9/1/24 to 8/1/27	82,498		91,264
10% 5/1/09	439		444
10.5% 5/1/21	6,473		6,686
11% 12/1/11	957		1,020
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount		Value
Freddie Mac - continued
11.5% 10/1/15	$ 5,762		$ 6,657
11.75% 10/1/10	6,077		6,570
TOTAL FREDDIE MAC			18,743,321
Government National Mortgage Association - 3.3%
5.25% 7/20/34 (j)	460,726		468,139
5.5% 3/1/38 (d)	3,000,000		3,068,363
5.5% 3/20/38 (d)	12,000,000		12,273,450
5.5% 3/20/38 (d)	13,000,000		13,296,238
5.5% 3/20/38 (d)	10,000,000		10,227,875
7% 7/15/28 to 11/15/28	477,751		507,992
7.5% 2/15/28 to 10/15/28	8,303		8,910
8% 6/15/24 to 10/15/24	7,240		7,935
8.5% 4/15/17 to 10/15/21	102,765		114,656
11% 7/20/19 to 8/20/19	5,065		6,061
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION			39,979,619
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES (Cost $143,983,344)		146,926,951
Asset-Backed Securities - 0.8%

Advanta Business Card Master Trust Series 2007-D1 Class D, 4.5138% 1/22/13 (c)(j)	1,420,000		1,204,528
AmeriCredit Automobile Receivables Trust Series 2006-1 Class E1, 6.62% 5/6/13 (c)	349,838		227,394
Bear Stearns Asset Backed Securities I Trust Series 2005-HE2 Class M2, 3.885% 2/25/35 (j)	570,000		433,447
Capital Auto Receivables Asset Trust Series 2006-SN1A:
Class B, 5.5% 4/20/10 (c)	245,000		249,544
Class C, 5.77% 5/20/10 (c)	235,000		233,393
Class D, 6.15% 4/20/11 (c)	400,000		396,108
Carrington Mortgage Loan Trust Series 2006-NC3 Class M10, 5.135% 8/25/36 (c)(j)	215,000		15,837
DB Master Finance LLC Series 2006-1 Class M1, 8.285% 6/20/31 (c)	715,000		622,050
Ford Credit Auto Owner Trust:
Series 2006-B Class D, 7.26% 2/15/13 (c)	850,000		691,515
Series 2006-C Class D, 6.89% 5/15/13 (c)	585,000		565,330
Series 2007-A Class D, 7.05% 12/15/13 (c)	310,000		280,066
Asset-Backed Securities - continued
	Principal Amount		Value
GS Auto Loan Trust Series 2006-1 Class D, 6.25% 1/15/14 (c)	$ 890,473		$ 861,951
GSAMP Trust Series 2004-AR1 Class B4, 5% 6/25/34 (c)(j)	142,877		85,726
Long Beach Mortgage Loan Trust Series 2006-7 Class M11, 3.185% 8/25/36 (j)	1,000,000		42,612
Merna Reinsurance Ltd. Series 2007-1 Class B, 6.58% 6/30/12 (c)(j)	1,695,000		1,646,862
Onyx Acceptance Owner Trust Series 2005-B Class A4, 4.34% 5/15/12	1,045,000		951,264
Structured Asset Securities Corp. Series 2006-BC1 Class B1, 5.635% 3/25/36 (c)(j)	700,000		46,419
Wachovia Auto Loan Owner Trust Series 2006-2A Class E, 7.05% 5/20/14 (c)	955,000		775,605
WaMu Asset-Backed Certificates Series 2006-HE5 Class B1, 5.635% 10/25/36 (c)(j)	825,000		64,132
TOTAL ASSET-BACKED SECURITIES (Cost $12,677,574)		9,393,783
Collateralized Mortgage Obligations - 3.8%

Private Sponsor - 0.5%
Chase Mortgage Finance Trust Series 2007-A1 Class 1A5, 4.3545% 2/25/37 (j)	150,743		149,966
Credit Suisse First Boston Mortgage Securities Corp. floater Series 2007-AR7 Class 2A1, 4.6214% 11/25/34 (j)	663,352		655,814
JPMorgan Mortgage Trust Series 2007-A1 Class 3A2, 5.0039% 7/25/35 (j)	692,504		685,928
Provident Funding Mortgage Loan Trust Series 2005-2 Class 3A, 4.9019% 10/25/35 (j)	1,474,016		1,442,083
RESI Finance LP/RESI Finance DE Corp. floater:
Series 2003-B Class B6, 6.015% 7/10/35 (c)(j)	729,217		757,445
Series 2003-CB1:
Class B4, 4.815% 6/10/35 (c)(j)	682,744		619,030
Class B5, 5.415% 6/10/35 (c)(j)	464,266		415,445
Class B6, 5.915% 6/10/35 (c)(j)	277,649		238,681
Structured Asset Securities Corp. floater Series 2006-BC5 Class B, 5.635% 12/25/36 (c)(j)	650,000		53,988
Collateralized Mortgage Obligations - continued
	Principal Amount		Value
Private Sponsor - continued
Wells Fargo Mortgage Backed Securities Trust:
Series 2005-AR12 Class 2A6, 4.334% 7/25/35 (j)	$ 203,125		$ 200,238
Series 2005-AR3 Class 2A1, 4.2009% 3/25/35 (j)	395,660		395,382
TOTAL PRIVATE SPONSOR			5,614,000
U.S. Government Agency - 3.3%
Fannie Mae Grantor Trust floater Series 2005-90 Class FG, 3.385% 10/25/35 (j)	4,601,770		4,561,511
Fannie Mae subordinate REMIC pass-thru certificates:
planned amortization class:
Series 2001-68 Class QZ, 5.5% 12/25/16	1,190,705		1,223,947
Series 2002-9 Class PC, 6% 3/25/17	211,790		219,384
Series 2003-84 Class GC, 4.5% 5/25/15	1,540,000		1,561,042
Series 2005-67 Class HD, 5.5% 12/25/30	2,835,000		2,929,260
Series 2006-4 Class PB, 6% 9/25/35	2,679,999		2,788,404
sequential payer:
Series 2002-56 Class MC, 5.5% 9/25/17	751,396		772,538
Series 2004-3 Class BA, 4% 7/25/17	124,152		124,828
Series 2004-45 Class AV, 4.5% 10/25/22	787,135		783,608
Series 2004-86 Class KC, 4.5% 5/25/19	553,913		560,823
Series 2004-91 Class AH, 4.5% 5/25/29	1,169,673		1,181,973
Freddie Mac planned amortization class Series 2104 Class PG, 6% 12/15/28	1,243,595		1,293,175
Freddie Mac Multi-class participation certificates guaranteed:
planned amortization class:
Series 2356 Class GD, 6% 9/15/16	799,685		832,475
Series 2363 Class PF, 6% 9/15/16	1,097,020		1,141,259
Series 2702 Class WB, 5% 4/15/17	2,480,000		2,523,700
Series 2952 Class EC, 5.5% 11/15/28	2,785,000		2,876,918
Series 3018 Class UD, 5.5% 9/15/30	1,735,000		1,794,949
Series 3033 Class UD, 5.5% 10/15/30	1,075,000		1,112,891
Series 3049 Class DB, 5.5% 6/15/31	2,495,000		2,558,650
Series 3117 Class PC, 5% 6/15/31	4,000,000		4,104,317
sequential payer:
Series 2528 Class HN, 5% 11/15/17	1,515,000		1,543,466
Collateralized Mortgage Obligations - continued
	Principal Amount		Value
U.S. Government Agency - continued
Freddie Mac Multi-class participation certificates guaranteed: - continued
sequential payer:
Series 2777 Class AB, 4.5% 6/15/29	$ 2,700,654		$ 2,731,627
Series 2809 Class UA, 4% 12/15/14	514,091		518,089
TOTAL U.S. GOVERNMENT AGENCY			39,738,834
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $44,756,493)		45,352,834
Commercial Mortgage Securities - 1.3%

Bear Stearns Commercial Mortgage Securities Trust Series 2003-T12 Class X2, 0.6867% 8/13/39 (c)(j)(l)	5,075,475		70,252
Citigroup Commercial Mortgage Trust Series 2007-C6 Class A1, 5.622% 12/10/49 (j)	2,251,530		2,226,875
Citigroup/Deutsche Bank Commercial Mortgage Trust sequential payer Series 2006-CD3 Class A3, 5.607% 10/15/48	3,000,000		2,845,634
Credit Suisse Commercial Mortgage Trust Series 2007-C2 Class A1, 5.269% 1/15/49	548,374		542,857
DLJ Commercial Mortgage Corp. sequential payer Series 1999-CG1 Class A1B, 6.46% 3/10/32	3,701,533		3,725,881
Ginnie Mae guaranteed Multi-family REMIC pass-thru securities sequential payer Series 2002-35 Class C, 5.8734% 10/16/23 (j)	57,600		58,599
Ginnie Mae guaranteed REMIC pass-thru securities sequential payer:
Series 2003-47 Class C, 4.227% 10/16/27	2,198,967		2,219,535
Series 2003-59 Class D, 3.654% 10/16/27	3,060,000		3,042,653
GMAC Commercial Mortgage Securities, Inc. Series 2004-C3 Class X2, 0.8335% 12/10/41 (j)(l)	10,826,622		186,690
LB-UBS Commercial Mortgage Trust sequential payer:
Series 2006-C7 Class A1, 5.279% 11/15/38	342,693		340,162
Series 2007-C2 Class A1, 5.226% 2/15/40	430,275		425,806
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $15,975,672)		15,684,944
Fixed-Income Funds - 49.8%
	Shares		Value
Fidelity 1-3 Year Duration Securitized Bond Central Fund (k)	703,790		$ 63,291,861
Fidelity 2-5 Year Duration Securitized Bond Central Fund (k)	1,092,040		101,679,852
Fidelity Corporate Bond 1-10 Year Central Fund (k)	2,987,685		299,545,287
Fidelity Corporate Bond 1-5 Year Central Fund (k)	187,611		18,937,437
Fidelity Specialized High Income Central Fund (k)	244,311		23,307,235
Fidelity Ultra-Short Central Fund (k)	1,053,506		90,380,296
TOTAL FIXED-INCOME FUNDS (Cost $628,260,150)		597,141,968
Cash Equivalents - 18.1%
	Maturity Amount
Investments in repurchase agreements in a joint trading account at 3.18%, dated 2/29/08 due 3/3/08:
(Collateralized by U.S. Government Obligations) #	115,210,507		115,180,000
(Collateralized by U.S. Government Obligations) # (a)	102,227,083		102,200,000
TOTAL CASH EQUIVALENTS (Cost $217,380,000)		217,380,000
TOTAL INVESTMENT PORTFOLIO - 114.1% (Cost $1,383,122,854)			1,366,680,615
NET OTHER ASSETS - (14.1)%			(168,593,179)
NET ASSETS - 100%		$ 1,198,087,436

Swap Agreements
	Expiration Date	Notional Amount
Credit Default Swaps
Receive monthly notional amount multiplied by 3.35% and pay Morgan Stanley, Inc. upon credit 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	(94,002)
Receive monthly notional amount multiplied by 3.05% and pay Merrill Lynch upon credit 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 B3, 7.2913% 9/25/34	Oct. 2034	142,860	(37,450)
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 credit 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, 6.635% 8/25/34	Sept. 2034	$ 119,548	$ (53,480)
Receive monthly notional amount multiplied by 3.35% and pay Morgan Stanley, Inc. upon credit 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, 7.6913% 7/25/34	August 2034	175,868	(50,532)
Receive from Citibank upon credit event of Merrill Lynch & Co., Inc., par value of the notional amount of Merrill Lynch & Co., Inc. 5% 1/15/15, and pay quarterly notional amount multiplied by .90%	Dec. 2012	900,000	40,595
Receive from Deutsche Bank upon credit event of Hartford Financial Services Group, Inc., par value of the notional amount of Hartford Financial Services Group, Inc. 4.75% 3/1/14, and pay quarterly notional amount multiplied by 1.67%	March 2013	200,000	1,877
Receive from Goldman Sachs upon credit event of Lowe's Companies, Inc., par value of the notional amount of Lowe's Companies, Inc. 8.25% 6/1/10, and pay quarterly notional amount multiplied by 1.07%	March 2013	400,000	1,260
Receive from Lehman Brothers, Inc. upon credit event of Hartford Financial Services Group, Inc., par value of the notional amount of Hartford Financial Services Group, Inc. 4.75% 3/1/14, and pay quarterly notional amount multiplied by 1.67%	March 2013	200,000	1,877
Receive from Lehman Brothers, Inc. upon credit event of Lowe's Companies, Inc., par value of the notional amount of Lowe's Companies, Inc. 8.25% 6/1/10, and pay quarterly notional amount miltiplied by 1.03%	March 2013	400,000	2,011
Swap Agreements - continued
	Expiration Date	Notional Amount	Value
Credit Default Swaps - continued
Receive from Morgan Stanley, Inc. upon credit event of H.J. Heinz Co., par value of the notional amount of H.J. Heinz Co. 6% 3/15/08, and pay quarterly notional amount multiplied by .65%	March 2013	$ 600,000	$ 1,307
Receive monthly a fixed rate of .15% multiplied by the notional amount and pay to Lehman Brothers, Inc. upon each credit event of one of the issues of Dow Jones ABX AA 07-1 Index, par value of the proportional notional amount (i)	Sept. 2037	1,500,000	(1,117,500)
Receive monthly notional amount multiplied by .52% and pay Bank of America upon credit 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	(616,880)
Receive monthly notional amount multiplied by .8% and pay Deutsche Bank upon credit 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	(224,155)
Receive monthly notional amount multiplied by .82% and pay UBS upon credit 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	250,290	(26,920)
Receive monthly notional amount multiplied by .85% and pay Deutsche Bank upon credit 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	(267,312)
Receive monthly notional amount multiplied by .85% and pay UBS upon credit 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	(154,278)
Swap Agreements - continued
	Expiration Date	Notional Amount	Value
Credit Default Swaps - continued
Receive monthly notional amount multiplied by .85% and pay UBS upon credit 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	$ (54,350)
Receive monthly notional amount multiplied by 1.6% and pay Morgan Stanley, Inc. upon credit 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	(198,286)
Receive monthly notional amount multiplied by 1.66% and pay Morgan Stanley, Inc. upon credit 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	(218,940)
Receive monthly notional amount multiplied by 2% and pay Goldman Sachs upon credit 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	(904,278)
Receive monthly notional amount multiplied by 2.5% and pay Credit Suisse First Boston upon credit 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	279,755	(129,614)
Receive monthly notional amount multiplied by 2.54% and pay Merrill Lynch upon credit 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	36,015	(30,594)
Swap Agreements - continued
	Expiration Date	Notional Amount	Value
Credit Default Swaps - continued
Receive monthly notional amount multiplied by 2.61% and pay Goldman Sachs upon credit 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	$ 85,922	$ (27,018)
Receive monthly notional amount multiplied by 2.61% and pay Goldman Sachs upon credit 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	38,517	(32,223)
Receive monthly notional amount multiplied by 2.7% and pay Merrill Lynch, Inc. upon credit 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	(1,527,294)
Receive monthly notional amount multiplied by 3% and pay UBS upon credit 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	(333,194)
Receive monthly notional amount multiplied by 5% and pay Deutsche Bank upon credit 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	(143,079)
Receive monthly notional amount multiplied by 5.55% and pay Deutsche Bank upon credit 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	(582,140)
Receive monthly notional amount multiplied by 6.25% and pay Deutsche Bank upon credit event of Residential Asset Mortgage Products, Inc., par value of the notional amount of Residential Asset Mortgage Products, Inc. Series 2006-RS5, 7.17% 9/25/36	Oct. 2036	700,000	(472,390)
Swap Agreements - continued
	Expiration Date	Notional Amount	Value
Credit Default Swaps - continued
Receive quarterly a fixed rate of .4% multiplied by the notional amount and pay to Merrill Lynch, Inc., upon each credit event of one of the issues of Dow Jones CDX N.A. Investment Grade 4 Index, par value of the proportional notional amount (g)	June 2010	$ 10,000,000	$ (282,614)
Receive quarterly a fixed rate of .45% multiplied by the notional amount and pay to Goldman Sachs, upon each credit event of one of the issues of Dow Jones CDX N.A. Investment Grade 5 Index, par value of the proportional notional amount (h)	Dec. 2010	15,000,000	(499,046)
Receive quarterly a fixed rate of .5% multiplied by the notional amount and pay to Merrill Lynch, Inc., upon each credit event of one of the issues of Dow Jones CDX N.A. Investment Grade 3 Index, par value of the proportional notional amount (f)	March 2010	6,373,600	(132,950)
Receive quarterly notional amount multiplied by .72% and pay Bank of America upon credit event of Alleghany Energy Supply Co. LLC, par value of the notional amount of Alleghany Energy Supply Co. LLC 8.25% 4/15/12	June 2012	1,400,000	(61,461)
Receive quarterly notional amount multiplied by .78% and pay Deutsche Bank upon credit event of Allegheny Energy Supply Co. LLC, par value of the notional amount of Allegheny Energy Supply Co. LLC 8.25% 4/15/12	June 2012	1,405,000	(58,222)
Receive quarterly notional amount multiplied by .97% and pay Citibank upon credit event of Lehman Brothers Holdings, Inc., par value of the notional amount of Lehman Brothers Holdings, Inc. 6.625% 1/18/12	Dec. 2012	900,000	(42,258)
TOTAL CREDIT DEFAULT SWAPS		51,432,375	(8,323,533)
Swap Agreements - continued
	Expiration Date	Notional Amount	Value
Interest Rate Swaps
Receive semi-annually a fixed rate equal to 3.475% and pay quarterly a floating rate based on 3-month LIBOR with Credit Suisse First Boston	Jan. 2013	$ 50,000,000	$ 310,450
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	921,579
Receive semi-annually a fixed rate equal to 4.9375% and pay quarterly a floating rate based on 3-month LIBOR with Lehman Brothers, Inc.	March 2012	25,000,000	2,016,365
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	1,674,866
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	2,268,724
TOTAL INTEREST RATE SWAPS		140,000,000	7,191,984
		$ 191,432,375	$ (1,131,549)