FIDELITY FIXED INCOME TRUST, N-30D, 1995-12-14

FIDELITY FIXED INCOME TRUST
N-30D, 1995-12-14

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(2_FIDELITY_LOGOS)FIDELITY

INVESTMENT GRADE BOND
FUND
SEMIANNUAL REPORT
OCTOBER 31, 1995
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

FUND TALK 7 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 10 A summary of major shifts in the
fund's investments over the past six
months.

INVESTMENTS 11 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 19 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 23 Notes to the financial statements.

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.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY,
ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC,
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL
1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST
OR SEND MONEY.
PRESIDENT'S MESSAGE

DEAR SHAREHOLDER:
Although the markets have been fairly positive this year, no one can
predict what lies ahead for investors. Last year, stocks posted
below-average returns and bonds had one of the worst years in history. This
downturn followed a period in which the investing environment was generally
very positive.
These market ups and downs are a normal part of investing, and there are
some basic principles that are helpful for investors to remember in
different types of markets.
Keeping in mind that the effects of interest rate changes on your bond
investments will only be "paper" gains or losses unless you sell your
shares, staying in your bond fund may be appropriate if your investment
horizon is at least a year or more. The longer your investing time frame,
the more likely it is that you will retain your principal investment
through both up and down markets. For example, a 10-year time frame, such
as saving for a college education, enables you to weather these ups and
downs in a long-term fund, which has higher potential returns. An
intermediate-length fund could be appropriate if your investment horizon is
two to four years, and a short-term bond fund could be the right choice if
you need your money in one or two years.
If your time horizon is less than a year, you might want to consider moving
some of your bond investment into a money market fund, which seeks income
and a stable share price by investing in high-quality, short-term
investments. Of course, there is no assurance that a money market fund will
achieve its goal, and it is important to remember that money market funds
are not insured or guaranteed by any agency of the U.S. government.
No matter what your investment horizon or portfolio diversity, it makes
good sense to follow a regular investment plan - investing a certain amount
of money at the same time each month or quarter - and to review your
portfolio periodically. A periodic investment plan will not, of course,
assure a profit or protect against a loss.
If you have any questions, please call us at 1-800-544-8888. We stand ready
to provide the information you need to make the investments that are right
for you.
Best regards,
Edward C. Johnson 3d
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. A fund's total
return includes changes in a fund's share price, plus reinvestment of any
dividends (or income) and capital gains (the profits the fund earns when it
sells securities that have grown in value). You can also look at the fund's
income to measure performance.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1995 PAST 6 PAST 1 PAST 5 PAST
MONTH YEAR YEARS 10
S YEARS

Investment Grade Bond 7.45% 12.15% 65.48% 147.52%

Lehman Brothers Aggregate Bond Index 8.07% 15.65% 58.53% 157.15%

Average Corporate BBB-Rated Bond 8.95% 16.45% 69.65% 155.05%
Fund

Consumer Price Index 1.18% 2.81% 15.13% 41.40%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one, five, or 10 years. For
example, if you invested $1,000 in a fund that had a 5% return over the
past year, the value of your investment would be $1,050. You can compare
the fund's returns to the performance of the Lehman Brothers Aggregate Bond
Index - a broad measure of the performance of the U.S. bond market. To
measure how the fund stacked up against its peers, you can compare it to
the average corporate BBB-rated bond fund, which reflects the performance
of 85 funds with similar objectives tracked by Lipper Analytical Services
over the past six months. These benchmarks include reinvested dividends and
capital gains, if any. Comparing the fund's performance to the consumer
price index (CPI) helps show how your fund did compared to inflation. (The
CPI returns begin on the month end closest to the fund's start date.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1995 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

Investment Grade Bond 12.15% 10.60% 9.49%

Lehman Brothers Aggregate Bond Index 15.65% 9.65% 9.91%

Average Corporate BBB-Rated Bond 16.45% 11.10% 9.78%
Fund

Consumer Price Index 2.81% 2.86% 3.52%

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER 10 YEARS
Investment GradLB Aggregate
10/31/85 10000.00 10000.00
11/30/85 10279.15 10240.30
12/31/85 10560.86 10553.31
01/31/86 10608.71 10612.02
02/28/86 11073.63 11030.41
03/31/86 11340.34 11375.69
04/30/86 11428.34 11433.63
05/31/86 11166.63 11215.49
06/30/86 11487.84 11508.28
07/31/86 11547.01 11610.55
08/31/86 11763.12 11898.28
09/30/86 11569.39 11781.24
10/31/86 11740.70 11951.94
11/30/86 11909.54 12118.36
12/31/86 11999.04 12164.63
01/31/87 12169.17 12335.72
02/28/87 12255.64 12421.26
03/31/87 12163.59 12365.27
04/30/87 11755.06 12026.21
05/31/87 11662.78 11979.16
06/30/87 11769.41 12144.02
07/31/87 11771.52 12134.69
08/31/87 11704.79 12069.76
09/30/87 11411.34 11812.74
10/31/87 11726.37 12233.46
11/30/87 11866.83 12331.44
12/31/87 12012.48 12499.42
01/31/88 12475.59 12938.80
02/29/88 12669.40 13092.39
03/31/88 12505.59 12969.52
04/30/88 12430.62 12899.53
05/31/88 12339.12 12812.82
06/30/88 12596.43 13121.94
07/31/88 12557.46 13053.11
08/31/88 12574.28 13087.33
09/30/88 12835.58 13383.62
10/31/88 13043.39 13635.59
11/30/88 12926.57 13469.94
12/31/88 12964.19 13485.11
01/31/89 13099.89 13679.14
02/28/89 13076.23 13579.98
03/31/89 13154.82 13638.70
04/30/89 13393.25 13924.10
05/31/89 13675.60 14289.99
06/30/89 14099.90 14725.10
07/31/89 14427.03 15038.11
08/31/89 14201.75 14815.30
09/30/89 14244.70 14891.13
10/31/89 14532.82 15258.18
11/30/89 14635.82 15403.61
12/31/89 14649.58 15444.82
01/31/90 14451.75 15261.30
02/28/90 14489.02 15310.29
03/31/90 14488.59 15321.56
04/30/90 14372.73 15181.20
05/31/90 14763.56 15630.69
06/30/90 14987.14 15881.48
07/31/90 15210.29 16101.17
08/31/90 15007.19 15886.15
09/30/90 15095.06 16017.58
10/31/90 14957.66 16220.93
11/30/90 15279.89 16570.11
12/31/90 15538.15 16828.29
01/31/91 15698.42 17036.32
02/28/91 15944.93 17181.74
03/31/91 16150.18 17299.95
04/30/91 16358.45 17487.36
05/31/91 16474.23 17589.63
06/30/91 16472.36 17580.68
07/31/91 16691.26 17824.48
08/31/91 17107.69 18210.20
09/30/91 17475.08 18579.21
10/31/91 17649.21 18786.06
11/30/91 17820.98 18958.32
12/31/91 18477.09 19521.35
01/31/92 18245.76 19255.77
02/29/92 18391.38 19380.98
03/31/92 18359.78 19271.72
04/30/92 18424.12 19410.92
05/31/92 18804.23 19777.20
06/30/92 19024.19 20049.38
07/31/92 19591.63 20458.43
08/31/92 19767.44 20665.68
09/30/92 19942.41 20910.65
10/31/92 19669.14 20633.41
11/30/92 19687.34 20638.07
12/31/92 20013.39 20966.25
01/31/93 20482.29 21368.30
02/28/93 20996.35 21742.36
03/31/93 21190.58 21832.96
04/30/93 21302.94 21984.99
05/31/93 21416.00 22012.99
06/30/93 21977.30 22411.93
07/31/93 22315.80 22538.69
08/31/93 22933.11 22933.74
09/30/93 22998.97 22996.73
10/31/93 23271.98 23082.67
11/30/93 23075.31 22886.31
12/31/93 23261.30 23010.34
01/31/94 23624.95 23321.02
02/28/94 22854.29 22915.86
03/31/94 22184.59 22350.88
04/30/94 22015.89 22172.41
05/31/94 22054.83 22169.30
06/30/94 21932.10 22120.30
07/31/94 22277.43 22559.69
08/31/94 22345.32 22587.68
09/30/94 22158.09 22255.23
10/31/94 22070.53 22235.40
11/30/94 22138.07 22186.02
12/31/94 22016.31 22339.22
01/31/95 22271.86 22781.32
02/28/95 22581.75 23322.96
03/31/95 22712.83 23466.05
04/30/95 23035.22 23793.84
05/31/95 23856.35 24714.60
06/30/95 24015.65 24895.79
07/31/95 23946.48 24840.19
08/31/95 24182.76 25139.98
09/30/95 24415.28 25384.56
10/31/95 24752.30 25714.67

$10,000 OVER 10 YEARS: Let's say you invested $10,000 in Investment Grade
Bond Fund on October 31, 1985. As the chart shows, by October 31, 1995, the
value of your investment would have grown to $24,752 - a 147.52% increase
on your initial investment. For comparison, look at how the Lehman Brothers
Aggregate Bond Index did over the same period. With dividends reinvested,
the same $10,000 investment would have grown to $25,715 - a 157.15%
increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is no
guarantee of how it will do
tomorrow. Bond prices, for
example, generally move in
the opposite direction of
interest rates. In turn, the
share price, return, and yield of
a fund that invests in bonds
will vary. That means if you
sell your shares during a
market downturn, you might
lose money. But if you can ride
out the market's ups and
downs, you may have a gain.
(checkmark)
TOTAL RETURN COMPONENTS
SIX MONTHS YEARS ENDED APRIL 30,
ENDED
OCTOBER 31,

1995 1995 1994 1993 1992 1991

Dividend return 3.45% 6.99% 6.92% 8.56% 9.12% 9.70%

Capital appreciation 4.00% -2.36 -3.57 7.07% 3.51% 4.12%
return % %

Total return 7.45% 4.63% 3.35% 15.63% 12.63% 13.82%

Dividends per share 3.94(cents) 23.62(cents) 47.37(cents)

Annualized dividend rate 6.40% 6.53% 6.72%

30-day annualized yield 5.72% - -

DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on an average share price of $7.25 over
the past month, $7.18 over the past six months and $7.05 over the past
year, you can compare the fund's income over these three periods. The
30-day annualized YIELD is a standard formula for all funds based on the
yields of the bonds in the fund, averaged over the past 30 days. This
figure shows you the yield characteristics of the fund's investments at the
end of the period. It also helps you compare funds from different companies
on an equal basis.
FUND TALK: THE MANAGER'S OVERVIEW

An interview with Michael Gray, Portfolio Manager of Fidelity Investment
Grade Bond Fund
Q. MICHAEL, HOW HAS THE FUND PERFORMED?
A. For the six months ended October 31, 1995, the fund had a total return
of 7.45%, compared to a return of 8.95% over the same period for the
average BBB-rated corporate bond fund, as tracked by Lipper Analytical
Services. The Lehman Brothers Aggregate Bond Index was up 8.07% for the
period. The fund underperformed its peers, mostly because the fund has a
shorter duration - or price sensitivity to changes in interest rates - than
the average fund in its group. This means that in a falling interest rate
environment like we've seen over the past year, funds with longer durations
performed better than ones with shorter durations. Conversely, when
interest rates rise, funds with shorter durations historically have less
price sensitivity.
Q. WE HAVE SEEN A SOLID BULL MARKET FOR BONDS THIS YEAR. THIS MUST HAVE
HELPED THE FUND A GREAT DEAL?
A. Absolutely. The bond market completely reversed last year's dismal
performance. Throughout the period, bond prices rose and interest rates
fell. The primary driver behind the interest-rate decline was a slowing in
economic growth and the expectation of a lower rate of inflation. Inflation
is a bond's greatest enemy because it erodes the value of the investment.
Generally, when the economy slows, the Federal Reserve Board will lower
short-term interest rates in an attempt to stimulate growth. In the third
quarter of this year, the Fed did just that and lowered the federal funds
rate 25 basis points or 0.25%. Additionally, bonds benefited from economic
indicators which pointed to relatively little inflation.
Q. WHAT AREA OF THE INVESTMENT-GRADE BOND MARKET HELPED THE FUND THE MOST?
A. Corporate bonds have performed well. In conjunction with low interest
rates - which lower a company's borrowing costs - we've seen strong
corporate earnings and solid balance sheets. This has caused credit quality
to improve. Additionally, a limited supply of corporate bonds and strong
demand for these bonds helped the market.
Q. DO YOU PLAN TO ADD TO THE FUND'S CORPORATE BOND POSITION?
A. Actually, I've been reducing the fund's corporate position. There are
signs the economy is slowing, which could hurt earnings. Additionally, the
supply of corporate bonds has picked up recently and a lot of merger and
acquisition activity has created fear in the market. In my opinion,
corporates are currently at very rich levels and, on a risk/reward basis,
don't make as much sense at this time. In other words, their up side
appears very limited and their down side looks great. Corporate bonds had a
good run, but going forward, the outlook does not appear to be very
favorable.
Q. WERE THERE ANY DISAPPOINTMENTS?
A. One letdown was the maturity structure I employed last spring. At the
time, I positioned the fund with a barbell structure in that it held
relatively large positions in short-term and long-term securities with
relatively smaller positions in intermediate-term securities. These
positions were established to take advantage of my expectation that the
Federal Reserve Board would not lower short-term rates, thus creating a
flat yield curve. As it turned out, the economy weakened more than expected
and the Fed did ease rates. This caused the yield curve to steepen as
short-term securities fell in yield more than longer-term securities. As a
result, the fund did not benefit from the barbell positioning.
Q. WAS THERE A PARTICULAR SECTOR OF THE MARKET THAT PROVED TO BE
DISAPPOINTING?
A. Utility bonds have not had a good year. The sector is in transition from
being heavily regulated to a more competitive environment. However, the
progress has been slow, and over time, utility company margins have
weakened along with earnings prospects. I should point out, though, that
these bonds currently make up only about 3% of the fund.
Q. WHAT'S HAPPENED IN THE MORTGAGE-BACKED SECURITIES MARKET AND HOW DID YOU
POSITION THE FUND IN THESE SECURITIES?
A. I was underweighted versus the fund's index in mortgage-backed
securities - such as Ginnie Maes - throughout the year as spreads widened
versus Treasuries. Prepayment fears - or the market's fear that these
securities' underlying pool of mortgages would be paid off early and force
bond holders to invest at less attractive rates - have cheapened the market
and created value. In addition, as rates returned to 18-month lows, new
issuance began to pick up as homeowners took advantage of new low rates to
refinance their existing mortgages.
Q. HAVE YOU ADDED MORE MORTGAGE-BACKED SECURITIES TO THE PORTFOLIO?
A. Yes, I slowly began adding mortgage-backed securities as the market
cheapened.
Q. HOW WOULD YOU DESCRIBE THE FUND'S DURATION VERSUS ITS BENCHMARK INDEX?
A. I've brought the fund's duration more in line with its benchmark index,
the Lehman Brothers Aggregate Bond Index. This gives the fund a greater
predictability when it comes to interest rate sensitivity. This strategy
allows me to add value through sector allocation and individual security
selection without introducing the increased volatility that can be
associated with timing the market. I will continue to rely on Fidelity's
internal research department to analyze fundamental factors about an issuer
such as credit quality - or the issuer's ability to pay interest and
principal on its bonds in a timely fashion.
Q. SO, WHAT'S YOUR OUTLOOK, MICHAEL?
A. I believe we may continue to see a constructive environment for bonds.
If Congress makes some headway on the budget and the Fed eases rates, bonds
could still be strong. Budget cutting generally constrains growth and it
appears inflation will remain low. The market, of course, is not without
some risks and I will continue to monitor political and economic events as
they happen.

FUND FACTS
GOAL: high current income,
by investing mainly in
investment grade debt
securities, with a focus on
medium- and long-term
bonds.
START DATE: August 6, 1971
SIZE: as of October 31, 1995
more than $1.1 billion
MANAGER: Michael Gray,
since 1987; also manages
Spartan Investment Grade
Bond Fund and VIPII:
Investment Grade; joined
Fidelity
in 1982
(checkmark)
MICHAEL GRAY ON FOREIGN
GOVERNMENT OBLIGATIONS IN
FIDELITY INVESTMENT GRADE
BOND FUND:
"I do not choose to invest in
non-dollar denominated
securities. The fund's
approximately 7% foreign
position is mostly in securities
known as Yankee bonds.
These dollar-denominated
bonds are issued in the U.S.
by foreign governments and
corporations. The advantage of
owning Yankee bonds is that
they generally trade
inexpensively for good quality
instruments. Historically, they
have generally proven to be
strong performers."
(solid bullet) The fund's estimated
duration at the end of the
period of 4.4 years was
slightly below that of its
benchmark index, the
Lehman Brothers Aggregate
Bond Index, which stood at
approximately 4.6 years.
Duration is a measure of a
bond or bond fund's price
sensitivity to a given change
in interest rates. In other
words, it is the approximate
percentage change in price
for a 1% change in interest
rates. For example, a duration
of 4 years means the fund will
likely go up or down roughly
4% for every 1% change in
interest rates. Of course,
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.
INVESTMENT CHANGES

QUALITY DIVERSIFICATION AS OF OCTOBER 31, 1995
(MOODY'S RATINGS) % OF FUND'S % OF FUND'S INVESTMENTS
INVESTMENTS 6 MONTHS AGO

Aaa 68.2 47.9

Aa 3.6 3.0

A 7.5 9.2

Baa 10.2 14.0

Ba 1.3 3.3

B 0.0 0.0

Not rated 1.6 1.4

TABLE EXCLUDES SHORT-TERM INVESTMENTS. SECURITIES RATED AS "BA" BY MOODY'S
WERE RATED INVESTMENT GRADE BY OTHER NATIONALLY RECOGNIZED RATING AGENCIES
OR ASSIGNED AN INVESTMENT GRADE RATING AT THE TIME OF ACQUISITION BY
FIDELITY.
AVERAGE YEARS TO MATURITY AS OF OCTOBER 31, 1995
6 MONTHS AGO

Years 7.6 9.5

AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY DOLLAR
AMOUNT.
DURATION AS OF OCTOBER 31, 1995
6 MONTHS AGO

Years 4.4 4.2

DURATION SHOWS HOW MUCH A BOND'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
AS OF OCTOBER 31, 1995* AS OF APRIL 30, 1995**
27.3.3
Corporate bonds 19.3%
U.S. government
and agency
obligations 67.3%
Foreign government
obligations 4.1%
Stocks 0.5%
Short-term
investments 7.1%
Other 1.7%
Corporate bonds 27.3%
U.S. government
and agency
obligations 46.5%
Foreign government
obligations 4.0%
Stocks 1.1%
Short-term
investments 20.2%
Other 0.9%
Row: 1, Col: 1, Value: 2.8
Row: 1, Col: 2, Value: 7.1
Row: 1, Col: 3, Value: 1.5
Row: 1, Col: 4, Value: 4.1
Row: 1, Col: 5, Value: 65.3
Row: 1, Col: 6, Value: 19.2
Row: 1, Col: 1, Value: 1.9
Row: 1, Col: 2, Value: 20.2
Row: 1, Col: 3, Value: 2.1
Row: 1, Col: 4, Value: 4.0
Row: 1, Col: 5, Value: 44.5
Row: 1, Col: 6, Value: 27.3
FOREIGN
INVESTMENTS 7.0%
**
*
FOREIGN
INVESTMENTS 7.8%
INVESTMENTS OCTOBER 31, 1995 (UNAUDITED)

Showing Percentage of Total Value of Investments in Securities

NONCONVERTIBLE BONDS - 19.3%
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
BASIC INDUSTRIES - 0.2%
PAPER & FOREST PRODUCTS - 0.2%
Boise Cascade Corp. 9 7/8%, 2/15/01 Baa3 $ 2,500 $ 2,709
DURABLES - 0.8%
AUTOS, TIRES, & ACCESSORIES - 0.4%
Pep Boys-Manny, Moe & Jack
8 7/8%, 4/15/96 Baa2 4,000 4,040
CONSUMER ELECTRONICS - 0.4%
Black & Decker Corp. 7 1/2%, 4/1/03 Ba1 5,000 5,167
TOTAL DURABLES 9,207
ENERGY - 1.0%
OIL & GAS - 1.0%
Elf Aquitaine yankee 7 3/4%, 5/1/99 Aa3 5,000 5,244
Texas Eastern Transmission Corp.:
10 3/8%, 11/15/00 Baa1 3,000 3,496
10%, 8/15/01 Baa1 2,350 2,715
11,455
FINANCE - 9.2%
ASSET-BACKED SECURITIES - 0.3%
Discover Card Trust 7 7/8%, 4/16/98 A2 830 835
KeyCorp Auto Grantor Trust 5.80%, 7/15/00 A3 1,104 1,100
Standard Credit Card Master Trust I
7.65%, 2/15/00 A2 430 444
Union Acceptance Corp. 7.075%, 7/10/02 Baa2 1,525 1,535
3,914
BANKS - 4.4%
Central Fidelity Banks, Inc. 8.15%, 11/15/02 Baa2 4,000 4,302
Citicorp 9%, 4/15/99 A2 2,000 2,171
Crestar Financial Corp. 8 3/4%, 11/15/04 Baa1 4,750 5,302
First Maryland Bancorp 8 3/8%, 5/15/02 Baa1 3,000 3,270
First USA Bank 5 3/4%, 1/15/99 Baa3 4,000 3,934
MBNA American Bank, N.A. 7 1/4%, 9/15/02 A3 4,600 4,728
Mercantile Bancorporation, Inc.
7 5/8%, 10/15/02 Baa1 1,000 1,044
Provident Bank:
7 1/8%, 3/15/03 Baa2 2,500 2,526
6 3/8%, 1/15/04 Baa2 600 576
NONCONVERTIBLE BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
FINANCE - CONTINUED
BANKS - CONTINUED
Shawmut National Corp. 7.20%, 4/15/03 Baa2 $ 6,700 $ 6,880
Society National Bank 7 1/4%, 6/1/05 A1 5,000 5,170
UJB Financial Corp. 8 5/8%, 12/10/02 Baa3 5,500 6,086
Zions Bancorporation 8 5/8%, 10/15/02 BBB- 5,000 5,432
51,421
CREDIT & OTHER FINANCE - 3.6%
Fleet Mortgage Group 6 1/2%, 9/15/99 A3 250 250
Ford Motor Credit Co. 8 3/8%, 1/15/23 A1 5,000 5,256
General Motors Acceptance Corp.:
7 7/8%, 2/23/98 A3 9,000 9,330
6%, 7/13/98 A3 5,000 4,977
Household Finance Corp.:
7.80%, 11/1/96 A2 4,000 4,065
6 3/4%, 6/1/20 A2 1,450 1,471
Secured Finance, Inc. Kroger gtd. secured
9.05%, 12/15/04 Aaa 4,000 4,594
Tenneco Credit Corp.:
10.05%, 8/17/98 Baa2 3,000 3,264
9 5/8%, 8/15/01 Baa2 8,000 9,121
42,328
INSURANCE - 0.2%
Metropolitan Life Insurance Co.
6.30%, 11/1/03 (d) Aa3 500 479
Nationwide Mutual Insurance Co.
6 1/2%, 2/15/04 (d) Aa3 1,500 1,458
1,937
SAVINGS & LOANS - 0.7%
Ahmanson (H.F.) & Co. 7 7/8%, 9/1/04 Baa2 2,600 2,753
Great Western Bank 10 1/4%, 6/15/20 A3 800 894
Home Savings of America 10 1/2%, 6/12/97 A3 5,000 5,077
8,724
TOTAL FINANCE 108,324
NONCONVERTIBLE BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
INDUSTRIAL MACHINERY & EQUIPMENT - 0.5%
ELECTRICAL EQUIPMENT - 0.4%
Westinghouse Electric Corp. 8 3/8%, 6/15/02 Ba1 $ 5,000 $ 5,009
INDUSTRIAL MACHINERY & EQUIPMENT - 0.1%
Caterpillar, Inc. 8%, 2/15/23 A2 500 553
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 5,562
MEDIA & LEISURE - 2.1%
LEISURE DURABLES & TOYS - 0.7%
Brunswick Corp. 8 1/8%, 4/1/97 Baa1 3,500 3,560
Mattel, Inc. 6 7/8%, 8/1/97 Baa1 5,000 5,028
8,588
PUBLISHING - 1.4%
News American Holdings, Inc.:
gtd. 9 1/8%, 10/15/99 Baa3 4,000 4,373
8 5/8%, 2/1/03 Baa3 3,240 3,540
Time Warner Entertainment Co. LP
9 5/8%, 5/1/02 Baa3 8,000 9,100
17,013
TOTAL MEDIA & LEISURE 25,601
NONDURABLES - 0.6%
FOODS - 0.2%
Quaker Oats Co. 7.30%, 8/29/05 A3 1,360 1,406
Ralcorp Holdings, Inc. 8 3/4%, 9/15/04 Ba1 800 876
2,282
TOBACCO - 0.4%
RJR Nabisco, Inc. gtd. 8 3/4%, 4/15/04 Baa3 4,200 4,272
TOTAL NONDURABLES 6,554
PRECIOUS METALS - 0.1%
Teck Corp. 8.70%, 5/1/02 Baa2 1,500 1,637
RETAIL & WHOLESALE - 0.4%
GROCERY STORES - 0.4%
American Stores Co. 7.20%, 6/09/03 Baa3 5,000 5,123
NONCONVERTIBLE BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
SERVICES - 0.4%
PRINTING - 0.4%
Valassis Communications, Inc. 9.55%, 12/1/03 Baa3 $ 5,000 $ 5,081
TECHNOLOGY - 0.4%
COMPUTERS & OFFICE EQUIPMENT - 0.4%
Comdisco, Inc.:
7 3/4%, 1/29/97 Baa2 2,000 2,035
9 1/4%, 7/6/00 Baa2 2,000 2,218
4,253
TRANSPORTATION - 0.5%
AIR TRANSPORTATION - 0.5%
United Air Lines, Inc.:
10.67%, 5/1/04 Baa3 3,000 3,454
equipment trust certificates, 9.76%, 5/13/06 Baa1 2,000 2,253
5,707
UTILITIES - 3.1%
ELECTRIC UTILITY - 2.7%
British Columbia Hydro & Power Authority
yankee:
euro 15 1/2%, 7/15/11 Aa2 1,990 2,243
15 1/2%, 7/15/11 Aa2 1,000 1,127
15 1/2%, 11/15/11 Aa2 1,000 1,155
12 1/2%, 1/15/14 Aa2 2,110 2,565
Gulf States Utilities Co. 9.72%, 7/1/98 Ba1 4,098 4,290
Hydro-Quebec yankee 8.40%, 1/15/22 A2 17,500 19,183
Systems Energy Resources, Inc. 1st mtg.
10 1/2%, 9/1/96 Baa3 1,000 1,035
31,598
GAS - 0.4%
Centragas Transpotadora De Gas
10.65%, 12/1/10 (d) BBB- 1,250 1,319
Transco Energy Co.:
9 1/2%, 12/1/95 Baa2 2,000 2,007
9 3/8%, 8/15/01 Baa2 2,000 2,253
5,579
TOTAL UTILITIES 37,177
TOTAL NONCONVERTIBLE BONDS
(Cost $221,442) 228,390
U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS - 59.1%
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
U.S. TREASURY OBLIGATIONS - 57.7
8 3/4%, 10/15/97 Aaa $ 38,900 $ 41,112
8 1/2%, 5/15/97 Aaa 143,166 149,160
5 1/8%, 3/31/98 Aaa 37,455 36,993
9 1/4%, 8/15/98 Aaa 5,000 5,450
5 1/8%, 12/31/98 Aaa 25,000 24,570
7 3/4%, 12/31/99 Aaa 55,830 59,782
7 7/8%, 8/15/01 Aaa 24,770 27,181
11 7/8%, 11/15/03 Aaa 23,520 32,208
6 1/4%, 2/15/03 Aaa 125,970 128,195
11 3/4%, 2/15/10 Aaa 25,460 35,537
12 3/4%, 11/15/10 Aaa 800 1,191
9 7/8%, 11/15/15 Aaa 12,500 17,397
9%, 11/15/18 Aaa 80,270 104,840
8 1/8%, 8/15/19 Aaa 9,000 10,834
12%, 8/15/23 Aaa 4,200 6,301
680,751
U.S. GOVERNMENT AGENCY OBLIGATIONS - 1.4%
Government Trust Certificates (assets of Trust
guaranteed by U.S. Government through
Export-Import Bank):
Series 1994-A 7.39%, 6/26/06 Aaa 513 538 Series 1994-C 6.61%,
9/15/99 Aaa 701 709
Series 1995-A 6.28%, 6/15/04 Aaa 7,300 7,309
Private Export Funding Corp. 5.80%, 2/1/04 Aaa 590 578
State of Israel (guaranteed by U.S. Government
through Agency for International Development):
5 1/4%, 3/15/98 Aaa 1,970 1,946
8%, 11/15/01 Aaa 900 982
6 1/4%, 8/15/02 Aaa 4,120 4,150
16,212
TOTAL U.S. GOVERNMENT AND GOVERNMENT
AGENCY OBLIGATIONS (Cost $678,914) 696,963
U.S. GOVERNMENT AGENCY - MORTGAGE-BACKED SECURITIES - 8.2%
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 0.5%
6%, 5/1/01 to 10/1/02 Aaa $ 5,545 $ 5,473
12 1/2%, 7/1/11 to 7/1/15 Aaa 657 759
6,232
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 7.7%
7%, 11/15/24 Aaa 10,000 9,930
7 1/2%, 12/15/22 to 9/15/25 Aaa 9,889 10,020
8%, 4/15/16 to 7/15/25 Aaa 12,892 13,303
9%, 4/15/16 to 10/15/25 Aaa 47,524 50,036
10%, 11/15/09 to 9/15/25 Aaa 6,382 6,989
90,278
TOTAL U.S. GOVERNMENT AGENCY -
MORTGAGE-BACKED SECURITIES
(Cost $95,131) 96,510
COMMERCIAL MORTGAGE SECURITIES - 1.7%
CS First Boston Mortgage Securities Corp.
commercial Series 1995 - AEW1 Class A-1,
6.665%, 11/25/27 AAA 3,500 3,498
FDIC commercial Series 1994-C1 Class II A-1,
6.30%, 9/25/25 Aaa 439 439
Kearny Street Mortgage commercial floater
Series 1995-1 Class A-1, 7.0399%,
2/20/30 (d)(g) AAA 1,587 1,610
Oregon pass thru certificates commercial Series
1995 Class A-1, 7.15%, 6/25/26 (d) AAA 3,481 3,494
Resolution Trust Corp. commercial:
Series 1994-C1 Class A-4,
7 1/4%, 6/25/26 AAA 814 811
Series 1994-C2 Class A-2,
7 3/4%, 4/25/25 AAA 670 673
Series 1994-C2 Class A-4,
7 1/2%, 4/25/25 AAA 859 860
Series 1994-N2 Class 2, 7 1/2%,
12/15/04 (d)(e) Aa2 2,100 2,109
Series 1995-C1 Class A-2A,
6 1/4%, 2/25/27 Aaa 3,996 3,977
Series 1995-C1 Class A-4A,
6 1/4%, 2/25/27 Aaa 2,383 2,371
Structured Asset Securities Corp. commercial
Series 1993-C1 Class A-1, 6.60%, 10/25/24 AA+ 818 814
TOTAL COMMERCIAL MORTGAGE SECURITIES
(Cost $20,565) 20,656
FOREIGN GOVERNMENT OBLIGATIONS (F) - 4.1%
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
Manitoba Province yankee:
6 7/8%, 9/15/02 A1 $ 3,000 $ 3,075
8.80%, 1/15/20 A1 15,000 18,007
Mexico Value Recovery (rights) (a) - 1 -
Ontario Province yankee:
7 3/4%, 6/4/02 Aa3 3,000 3,202
7 3/8%, 1/27/03 Aa3 8,000 8,389
15 1/8%, 5/1/11 Aa3 7,000 7,691
17%, 11/5/11 Aa3 2,860 3,338
15 1/4%, 8/31/12 Aa3 3,000 3,617
Province of Chaco, Argentina 11 7/8%,
9/10/97 (c) - 667 687
TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost $44,393) 48,006
NONCONVERTIBLE PREFERRED STOCKS - 0.5%
SHARES
UTILITIES - 0.5%
ELECTRIC UTILITY - 0.5%
Gulf States Utilities Co. $1.75 120,000 2,850
Niagara Mohawk Power Corp. Series A adj. rate 49,605 843
Public Service Co. of New Hampshire Series A 80,000 2,110
TOTAL NONCONVERTIBLE PREFERRED STOCKS
(Cost $5,973) 5,803
REPURCHASE AGREEMENTS - 7.1%
MATURITY
AMOUNT
(000S)
Investments in repurchase agreements
(U.S. Treasury obligations) in a
joint trading account at 5.88%,
dated 10/31/95 due 11/1/95 $ 83,769 83,755
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $1,150,173) $ 1,180,083
LEGEND
1. Non-income producing
2. Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
3. Restricted securities - Investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on each holding is as follows:
ACQUISITION
ACQUISITION COST
SECURITY DATE (000S)
Province of Chaco,
Argentina 11 7/8%,
9/10/97 3/9/94 $ 706
4. Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $10,469,000 or 0.9% of net
assets.
5. Debt obligation initially issued at one coupon which converts to a
higher coupon at a specified date.
6. Some foreign government obligations have not been individually rated by
S&P or Moody's. The ratings listed are assigned to securities by FMR, the
fund's investment adviser, based principally on S&P and Moody's ratings of
the sovereign credit of the issuing government.
7. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows:
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 79.3% AAA, AA, A 79.5%
Baa 10.2% BBB 11.2%
Ba 1.3% BB 1.1%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
For some foreign government obligations, FMR has assigned the ratings of
the sovereign credit of the issuing government. The percentage not rated by
either S&P or Moody's amounted to 0.1%.
INCOME TAX INFORMATION
At October 31, 1995, the aggregate cost of investment securities for income
tax purposes was $1,150,499,000. Net unrealized appreciation aggregated
$29,584,000, of which $35,220,000 related to appreciated investment
securities and $5,636,000 related to depreciated investment securities.
The fund intends to elect to defer to its fiscal year ending April 30, 1996
approximately $33,024,000 of losses recognized during the period November
1, 1994 to April 30, 1995.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNT) OCTOBER 31, 1995 (UNAUDITED)

ASSETS

Investment in securities, at value (including repurchase $ 1,180,083
agreements of $83,755) (cost $1,150,173) -
See accompanying schedule

Cash 799

Receivable for investments sold 23,866

Interest receivable 23,537

TOTAL ASSETS 1,228,285

LIABILITIES

Payable for investments purchased $ 34,634

Payable for fund shares redeemed 4,265

Distributions payable 990

Accrued management fee 442

Other payables and accrued expenses 335

TOTAL LIABILITIES 40,666

NET ASSETS $ 1,187,619

Net Assets consist of:

Paid in capital $ 1,180,501

Distributions in excess of net investment income (5,468)

Accumulated undistributed net realized gain (loss) on (17,374)
investments and foreign currency transactions

Net unrealized appreciation (depreciation) on 29,960
investments and assets and liabilities in foreign
currencies

NET ASSETS, for 163,627 shares outstanding $ 1,187,619

NET ASSET VALUE, offering price and redemption price per $7.26
share ($1,187,619 (divided by) 163,627 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS ENDED OCTOBER 31, 1995 (UNAUDITED)

INVESTMENT INCOME $ 332
Dividends

Interest (including income on securities loaned of $18) 42,111

TOTAL INCOME 42,443

EXPENSES

Management fee $ 2,595

Transfer agent fees 1,327

Accounting and security lending fees 167

Non-interested trustees' compensation 3

Custodian fees and expenses 27

Registration fees 16

Audit 22

Legal 2

Miscellaneous 1

TOTAL EXPENSES 4,160

NET INVESTMENT INCOME 38,283

REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:

Investment securities 26,476

Futures contracts (9,413) 17,063

Change in net unrealized appreciation (depreciation) on:

Investment securities 25,094

Futures contracts 1,429 26,523

NET GAIN (LOSS) 43,586

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 81,869
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS YEAR ENDED
ENDED OCTOBER APRIL 30,
31, 1995
1995
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

Operations $ 38,283 $ 69,460
Net investment income

Net realized gain (loss) 17,063 (21,556)

Change in net unrealized appreciation (depreciation) 26,523 (1,495)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 81,869 46,409
FROM OPERATIONS

Distributions to shareholders (37,881) (68,863)
From net investment income

From net realized gain - (15,380)

In excess of net realized gain (4,766) -

TOTAL DISTRIBUTIONS (42,647) (84,243)

Share transactions 260,904 620,869
Net proceeds from sales of shares

Reinvestment of distributions 36,405 70,579

Cost of shares redeemed (236,013) (509,255)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 61,296 182,193
FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS 100,518 144,359

NET ASSETS

Beginning of period 1,087,101 942,742

End of period (including distributions in excess of net $ 1,187,619 $ 1,087,101
investment income of $5,468 and $5,870,
respectively)

OTHER INFORMATION
Shares

Sold 36,348 88,842

Issued in reinvestment of distributions 5,053 10,023

Redeemed (32,879) (72,842)

Net increase (decrease) 8,522 26,023

</TABLE>

FINANCIAL HIGHLIGHTS
SIX MONTHS YEAR ENDED APRIL 30,
ENDED
OCTOBER 31,
1995

(UNAUDITED) 1995 1994 C 1993 1992 1991

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE
DATA

Net asset value, $ 7.010 $ 7.300 $ 7.570 $ 7.070 $ 6.830 $ 6.560
beginning of period

Income from Investment .241 .464 .522 .570 .591 .592
Operations
Net investment income

Net realized and .275 (.147) (.254) .499 .244 .277
unrealized gain (loss)

Total from investment .516 .317 .268 1.069 .835 .869
operations

Less Distributions (.236) (.487) (.525) (.569) (.595) (.599)
From net investment
income

In excess of net - - (.013) - - -
investment income

From net realized gain - (.120) - - - -

In excess of net (.030) - - - - -
realized gain

Total distributions (.266) (.607) (.538) (.569) (.595) (.599)

Net asset value, end of $ 7.260 $ 7.010 $ 7.300 $ 7.570 $ 7.070 $ 6.830
period

TOTAL RETURN B 7.45% 4.63 3.35 15.63 12.63 13.82
% % % % %

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period $ 1,188 $ 1,087 $ 943 $ 1,018 $ 943 $ 455
(in millions)

Ratio of expenses to .72% .75 .74 .68 .70 .67
average net assets A % % % % %

Ratio of net investment 6.61% 7.00 6.94 7.74 8.29 8.84
income to average net A % % % % %
assets

Portfolio turnover rate 156% 90 61 74 77 101
A % % % % %

</TABLE>

A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C EFFECTIVE NOVEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION 93-2,
"DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF
INCOME, CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT
COMPANIES." AS A RESULT, NET INVESTMENT INCOME PER SHARE MAY REFLECT
CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
NOTES TO FINANCIAL STATEMENTS
For the period ended October 31, 1995 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Investment Grade Bond Fund (the fund) is a fund of Fidelity
Fixed-Income Trust (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 following
summarizes the significant accounting policies of the fund:
SECURITY VALUATION. Securities are valued based upon a computerized matrix
system and/or appraisals by a pricing service, both of which consider
market transactions and dealer-supplied valuations. Short-term securities
maturing within sixty days of their purchase date are valued either at
amortized cost or original cost plus accrued interest, both of which
approximate current value. Securities (including restricted securities) for
which market quotations are not readily available are valued at their fair
value as determined in good faith under consistently applied procedures
under the general supervision of the Board of Trustees.
FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Purchases and
sales of securities, income receipts, and expense payments are translated
into U.S. dollars at the prevailing exchange rate on the respective dates
of the transactions.
Net realized gains and losses on foreign currency transactions represent
net gains and losses from sales and maturities of forward currency
contracts, disposition of foreign currencies, currency gains and losses
realized between the trade and settlement dates on securities transactions,
and the difference between the amount of net investment income accrued and
the U.S. dollar amount actually received. The effects of changes in foreign
currency exchange rates on investments in securities are included with the
net realized and unrealized gain or loss on investment securities.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes substantially all of its taxable income for
its fiscal year. The schedule of investments includes information regarding
income taxes under the caption "Income Tax Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date,
except certain dividends from foreign securities where the ex-dividend date
may have passed, are recorded as soon as the fund is informed of the
ex-dividend date. Interest income, which includes accretion of original
issue discount, is accrued as earned. Investment income is recorded net of
foreign taxes withheld where recovery of such taxes is uncertain.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS.
Distributions are declared daily and paid monthly from net investment
income. Distributions from realized gains, if any, are recorded on the
ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences, which may result in distribution
reclassifications, are primarily due to differing treatments for paydown
gains/losses on certain securities, futures and options transactions,
foreign currency transactions, market discount and losses deferred due to
wash sales.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect the per-share allocation between net investment income and realized
and unrealized gain (loss). Distributions in excess of net investment
income and accumulated undistributed net realized gain (loss) on
investments may include temporary book and tax basis differences that will
reverse in a subsequent period. Any taxable income or gain remaining at
fiscal year end is distributed in the following year.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
FORWARD FOREIGN CURRENCY CONTRACTS. The fund may use foreign currency
contracts to facilitate transactions in foreign securities and to manage
the fund's currency exposure. Contracts to buy generally are used to
acquire exposure to foreign currencies, while contracts to sell are used to
hedge the fund's investments against currency fluctuations. Also, a
contract to buy or sell can offset a previous contract. Losses may arise
from changes in the value of the foreign currency or if the counterparties
do not perform under the contracts' terms.
The U.S. dollar value of forward foreign currency contracts is determined
using forward currency exchange rates supplied by a quotation service.
Purchases and sales of forward foreign currency contracts having the same
settlement date and broker are offset and any realized gain (loss) is
recognized on the date of offset; otherwise, gain (loss) is recognized on
settlement date.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other affiliated
entities of Fidelity Management & Research Company (FMR), may transfer
uninvested cash balances into one or more joint trading accounts. These
balances
2. OPERATING POLICIES - CONTINUED
JOINT TRADING ACCOUNT - CONTINUED
are invested in one or more repurchase agreements that mature in 60 days or
less from the date of purchase, and are collateralized by U.S. Treasury or
Federal Agency obligations.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying U.S. Treasury or Federal Agency Securities, the market
value of which is required to be at least equal to the repurchase price.
For term repurchase agreement transactions, the underlying securities are
marked-to-market daily and maintained at a value at least equal to the
repurchase price. FMR, the fund's investment adviser, is responsible for
determining that the value of the underlying securities remains in
accordance with the market value requirements stated above.
FUTURES CONTRACTS AND OPTIONS. The fund may use futures and options
contracts to manage its exposure to the bond market and to fluctuations in
interest rates and currency values. Buying futures, writing puts, and
buying calls tend to increase the fund's exposure to the underlying
instrument. Selling futures, buying puts, and writing calls tend to
decrease the fund's exposure to the underlying instrument, or hedge other
fund investments. Losses may arise from changes in the value of the
underlying instruments, if there is an illiquid secondary market for the
contracts, or if the counterparties do not perform under the contracts'
terms.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Exchange-traded
options are valued using the last sale price or, in the absence of a sale,
the last offering price. Options traded over-the-counter are valued using
dealer-supplied valuations.
RESTRICTED SECURITIES. The fund is permitted to 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. At the end of the period,
restricted securities (excluding 144A issues) amounted to $687,000 or 0.1%
of net assets.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $970,726,000 and $780,382,000, respectively, of which U.S.
government and government agency obligations aggregated $929,576,000 and
$659,469,000, respectively.
The market value of futures contracts opened and closed during the period
amounted to $88,276,000 and $194,335,000, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly
fee that is calculated on the basis of a group fee rate plus a fixed
individual fund fee rate applied to the average net assets of the fund. The
group fee rate is the weighted average of a series of rates and is based on
the monthly average net assets of all the mutual funds advised by FMR. The
rates ranged from .1200% to .3700% for the period. In the event that these
rates were lower than the contractual rates in effect during the period,
FMR voluntarily implemented the above rates, as they resulted in the same
or a lower management fee. The annual individual fund fee rate is .30%. For
the period, the management fee was equivalent to an annualized rate of .45%
of average net assets.
DISTRIBUTION AND SERVICE PLAN.
Pursuant to the Distribution and Service Plan (the Plan), and in accordance
with Rule 12b-1 of the 1940 Act, FMR or the fund's distributor, Fidelity
Distributors Corporation (FDC), an affiliate of FMR, may use their
resources to pay administrative and promotional expenses related to the
sale of the fund's shares. Subject to the approval of the Board of
Trustees, the Plan also authorizes payments to third parties that assist in
the sale of the fund's shares or render shareholder support services. FMR
or FDC has informed the fund that payments made to third parties under the
Plan amounted to $17,000 for the period.
TRANSFER AGENT FEES. Fidelity Service Co. (FSC), an affiliate of FMR, is
the fund's transfer, dividend disbursing and shareholder servicing agent.
FSC receives account fees and asset-based fees that vary according to
account size and type of account. FSC pays for typesetting, printing and
mailing of all shareholder reports, except proxy statements.
ACCOUNTING AND SECURITY LENDING FEES. FSC maintains the fund's accounting
records and administers the security lending program. The security lending
fee is based on the number and duration of lending transactions. The
accounting fee is based on the level of average net assets for the month
plus out-of-pocket expenses.
5. SECURITY LENDING.
The fund loaned securities to certain brokers who paid the fund negotiated
lenders' fees. These fees are included in interest income. The fund
receives U.S. Treasury obligations and/or cash as collateral against the
loaned securities, in an amount at least equal to 102% of the market value
of the loaned securities at the inception of each loan. This collateral
must be maintained at not less than 100% of the market value of the loaned
securities during the period of the loan. At period end, there were no
loans outstanding.

TO CALL FIDELITY

FOR FUND INFORMATION AND QUOTES
The Fidelity Telephone Connection offers you special automated telephone
services for quotes and balances. The services are easy to use,
confidential and quick. All you need is a Touch Tone telephone.
YOUR PERSONAL IDENTIFICATION NUMBER
(PIN)
The first time you call one of our automated telephone services, we'll ask
you
to set up your Personal Identification
Number (PIN). The PIN assures that
only you have automated telephone
access to your account information.
Please have your Customer Number
(T-account #) handy when you call -
you'll need it to establish your PIN. If
you would ever like to change your PIN, just choose the "Change your
Personal
Identification Number" option when
you call. If you forget your PIN, please
call a Fidelity representative at 1-800-
544-6666 for assistance.

For directions and hours,
please call 1-800-544-9797.
ARIZONA
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CALIFORNIA
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251 University Avenue
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COLORADO
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4090 N. Ocean Boulevard
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3525 Piedmont Road, N.E.
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1000 Abernathy Road
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HAWAII
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MAINE
3 Canal Plaza
Portland, ME
MARYLAND
7401 Wisconsin Avenue
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1 West Pennsylvania Ave.
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MASSACHUSETTS
470 Boylston Street
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21 Congress Street
Boston, MA
25 State Street
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300 Granite Street
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44 Mall Road
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416 Belmont Street
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MICHIGAN
280 North Woodward Ave.
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MINNESOTA
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MISSOURI
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56 South Street
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505 Millburn Avenue
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NEW YORK
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999 Walt Whitman Road
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Americas
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71 Broadway
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NORTH CAROLINA
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OHIO
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1010 Lamar Street
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14100 San Pedro
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UTAH
215 South State Street
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VERMONT
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VIRGINIA
8180 Greensboro Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
511 Pine Street
Seattle, WA
WASHINGTON, DC
1775 K Street, N.W.
Washington, DC
WISCONSIN
595 North Barker Road
Brookfield, WI

INVESTMENT ADVISER
Fidelity Management & Research
Company
Boston, MA
INVESTMENT SUB-ADVISERS
Fidelity Management & Research
(U.K.) Inc., London, England
Fidelity Management & Research
(Far East) Inc., Tokyo, Japan
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Fred L. Henning, Jr., Vice President
Michael Gray, Vice President
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
CUSTODIAN
The Bank of New York
New York, NY
FIDELITY'S TAXABLE BOND FUNDS
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Mortgage Securities
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Short-Intermediate Government
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Spartan(registered trademark) Ginnie Mae
Spartan Government Income
Spartan High Income
Spartan Investment Grade Bond
Spartan Limited Maturity Government
Spartan Long-Term Government Bond
Spartan Short-Intermediate Government
Spartan Short-Term Income
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
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(8 a.m. - 9 p.m.)
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for the deaf and hearing impaired
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(registered trademark)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE

(2_FIDELITY_LOGOS)FIDELITY

SHORT-TERM BOND
PORTFOLIO
SEMIANNUAL REPORT
OCTOBER 31, 1995
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

FUND TALK 7 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 10 A summary of major shifts in the
fund's investments over the past six
months.

INVESTMENTS 11 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 20 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 24 Notes to the financial statements.

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. A fund's total
return includes changes in a fund's share price, plus reinvestment of any
dividends (or income) and capital gains (the profits the fund earns when it
sells bonds that have grown in value). You can also look at the fund's
income to measure performance.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1995 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

Short-Term Bond 4.55% 5.86% 40.69% 81.16%

Lehman Brothers 1-3 Year
Government-Corporate Bond Index 4.69% 8.93% 40.79% n/a

Average Short Investment Grade Bond Fund 4.89% 8.79% 42.23% n/a

Consumer Price Index 1.18% 2.81% 15.13% 40.11%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, five years, or
since the fund started on September 15, 1986. For example, if you invested
$1,000 in a fund that had a 5% return over the past year, the value of your
investment would be $1,050. You can compare the fund's returns to the
performance of the Lehman Brothers 1-3 Year Government-Corporate Bond Index
- - a broad measure of the performance of short-term government and corporate
bonds. To measure how the fund's performance stacked up against its peers,
you can compare it to the average short investment grade bond fund, which
reflects the performance of 153 funds with similar objectives tracked by
Lipper Analytical Services over the past six months. These benchmarks
include reinvested dividends and capital gains, if any. Comparing the
fund's performance to the consumer price index (CPI) helps show how your
fund did compared to inflation. (The CPI returns begin on the month end
closest to the fund's start date.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Short-Term Bond 5.86% 7.07% 6.72%

Lehman Brothers 1-3 Year
Government-Corporate Bond Index 8.93% 7.08% n/a

Average Short Investment Grade Bond Fund 8.79% 7.29% n/a

Consumer Price Index 2.81% 2.86% 3.75%

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
Short Term PLB 1-3 Ye
09/30/86 10000.00 10000
10/31/86 10072.04 10088.57
11/30/86 10141.28 10150.23
12/31/86 10172.93 10175.1
01/31/87 10217.56 10247.66
02/28/87 10276.98 10293.65
03/31/87 10278.78 10316.13
04/30/87 10151.54 10244.25
05/31/87 10163.37 10260.26
06/30/87 10278.16 10373.36
07/31/87 10298.84 10430.59
08/31/87 10332.08 10445.92
09/30/87 10267.71 10410.15
10/31/87 10421.07 10616.25
11/30/87 10486.67 10687.11
12/31/87 10576.88 10761.37
01/31/88 10733.38 10923.52
02/29/88 10845.82 11018.91
03/31/88 10845.59 11043.43
04/30/88 10853.17 11058.08
05/31/88 10828.02 11053.65
06/30/88 10940.03 11164.37
07/31/88 10949.16 11172.2
08/31/88 10968.42 11200.48
09/30/88 11070.46 11330.27
10/31/88 11184.47 11444.39
11/30/88 11146.23 11417.14
12/31/88 11180.65 11443.37
01/31/89 11277.05 11535.34
02/28/89 11297.59 11538.07
03/31/89 11332.02 11584.74
04/30/89 11476.37 11772.78
05/31/89 11650.86 11940.04
06/30/89 11846.54 12160.45
07/31/89 11995.07 12341.68
08/31/89 11965.05 12271.84
09/30/89 12014.58 12344.06
10/31/89 12213.07 12536.54
11/30/89 12296.51 12648.61
12/31/89 12356.34 12698.69
01/31/90 12332.47 12711.97
02/28/90 12388.43 12779.42
03/31/90 12434.45 12819.96
04/30/90 12460.85 12851.98
05/31/90 12669.25 13050.59
06/30/90 12760.41 13188.55
07/31/90 12908.40 13348.32
08/31/90 12888.81 13395.67
09/30/90 12911.07 13496.17
10/31/90 12878.99 13635.5
11/30/90 12946.29 13768.69
12/31/90 13070.96 13929.82
01/31/91 13052.89 14055.87
02/28/91 13203.03 14157.38
03/31/91 13460.34 14260.26
04/30/91 13643.93 14399.93
05/31/91 13783.08 14489.87
06/30/91 13833.63 14543.69
07/31/91 13943.80 14671.44
08/31/91 14177.97 14870.38
09/30/91 14324.59 15030.49
10/31/91 14490.57 15192.3
11/30/91 14640.50 15345.94
12/31/91 14904.20 15577.93
01/31/92 14965.37 15561.91
02/29/92 15095.20 15611.31
03/31/92 15198.74 15607.9
04/30/92 15281.40 15750.64
05/31/92 15428.55 15898.14
06/30/92 15572.51 16060.64
07/31/92 15756.99 16249.02
08/31/92 15894.87 16380.17
09/30/92 16026.22 16535.17
10/31/92 15912.83 16435.7
11/30/92 15897.77 16412.54
12/31/92 16005.24 16567.54
01/31/93 16269.10 16744.34
02/28/93 16450.68 16880.94
03/31/93 16552.55 16935.79
04/30/93 16633.86 17042.07
05/31/93 16662.41 17003.24
06/30/93 16843.71 17132
07/31/93 16941.20 17171.18
08/31/93 17127.41 17314.94
09/30/93 17190.81 17370.81
10/31/93 17300.61 17411.34
11/30/93 17335.42 17416.45
12/31/93 17466.52 17486.97
01/31/94 17580.31 17598.36
02/28/94 17427.40 17491.74
03/31/94 17095.41 17401.81
04/30/94 16964.24 17335.72
05/31/94 17058.05 17359.22
06/30/94 16900.92 17404.87
07/31/94 17028.12 17563.28
08/31/94 17097.98 17622.55
09/30/94 17125.75 17583.38
10/31/94 17117.17 17623.57
11/30/94 17143.54 17549.65
12/31/94 16751.59 17583.04
01/31/95 16879.47 17824.56
02/28/95 17057.45 18071.2
03/31/95 17166.00 18173.74
04/30/95 17331.76 18338.27
05/31/95 17640.63 18655.77
06/30/95 17746.64 18757.28
07/31/95 17796.32 18832.23
08/31/95 17909.10 18946.35
09/30/95 18001.36 19040.03
10/31/95 18119.60 19198.09

$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Short-Term
Bond Portfolio on September 30, 1986, shortly after the fund started. As
the chart shows, by October 31, 1995, the value of your investment would
have grown to $18,120 - an 81.20% increase on your initial investment. For
comparison, look at how the Lehman Brothers 1-3 Year Government-Corporate
Bond Index did over the same period. With dividends reinvested, the same
$10,000 investment would have grown to $19,198 - a 91.98% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, generally move in
the opposite direction of
interest rates. In turn, the
share price, return, and yield
of a fund that invests in
bonds will vary. That means if
you sell your shares during a
market downturn, you might
lose money. But if you can ride
out the market's ups and
downs, you may have a gain.
(checkmark)
TOTAL RETURN COMPONENTS
SIX MONTHS YEARS ENDED APRIL 30,
ENDED
OCTOBER
31,

1995 1995 1994 1993 1992 1991

Dividend return 3.17% 6.13% A 6.51% 8.00% 9.28% 9.38%

Capital appreciation 1.38% -3.96% -4.52% 0.85% 2.72% 0.11%
return

Total return 4.55% 2.17% 1.99% 8.85% 12.00% 9.49%

Dividends per share 4.80(cents) 27.26(cents) 53.95(cents)

Annualized dividend rate 6.39% 6.12% 6.15%

30-day annualized yield 5.38% - -

DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on an average share price of $8.84 over
the past month, $8.83 over the past six months and $8.77 over the past
year, you can compare the fund's income over these three periods. The
30-day annualized YIELD is a standard formula for all funds based on the
yields of the bonds in the fund, averaged over the past 30 days. This
figure shows you the yield characteristics of the fund's investments at the
end of the period. It also helps you compare funds from different companies
on an equal basis.

A NON-TAXABLE DIVIDENDS: DIVIDENDS PAID ARE BASED ON THE FUND'S INVESTMENT
INCOME AND DO NOT REFLECT CURRENCY RELATED LOSSES. AS A RESULT OF CURRENCY
LOSSES, DIVIDENDS OF APPROXIMATELY 11.8(CENTS) PER SHARE PAID DURING 1995
ARE EXPECTED TO BE A NON-TAXABLE RETURN OF CAPITAL. THE EXACT NON-TAXABLE
AMOUNT TO USE IN PREPARING YOUR INCOME TAX RETURN WILL DEPEND ON YOUR SHARE
ACTIVITY AND WILL BE REPORTED TO YOU IN JANUARY 1996.
FUND TALK: THE MANAGER'S OVERVIEW

An interview with Charles Morrison, Portfolio Manager of Fidelity
Short-Term Bond Portfolio
Q. CHARLIE, HOW HAS THE FUND PERFORMED?
A. It has performed pretty much in line with the market and its competitors
over the past six months. For the six months ended October 31, 1995, the
fund had a total return of 4.55%, compared to 4.89% for the average short
investment grade bond fund tracked by Lipper Analytical Services, and 4.69%
for the Lehman Brothers 1-3 Year Government-Corporate Bond Index. For the
12 months ended October 31, 1995, the fund returned 5.86%, compared to
8.79% for the average investment grade bond fund and 8.93% for the Lehman
Brothers index.
Q. WHAT HAS THE INVESTING MARKET BEEN LIKE, PARTICULARLY FOR THE SHORT-TERM
GOVERNMENT/CORPORATE MARKET?
A. In terms of interest rate moves and impact on total return, the past six
months have been a good run for the short end of the market. Yields on the
two-year Treasury have dropped from just over 6.5% to just over 5.5% over
the six-month period, leading to price gains for short-term bonds. These
interest rate moves were the result of a weaker economic outlook and
expectations that the Federal Reserve Board would cut short-term interest
rates, which they did in early July. Since that time, rates have moved up
and down slightly as a result of the mixed economic reports we've seen.
Overall, though, the backdrop has generally been a positive one for bonds,
with the economy showing moderate growth and inflation staying low.
Q. WHERE HAVE YOU FOUND INVESTMENT OPPORTUNITIES?
A. There have been three main ways in this market that I have taken
advantage of attractive opportunities: reducing corporate exposure, adding
to the fund's stake in commercial mortgage-backed securities and yield
curve positioning. I've reduced the overall corporate exposure to try to
take advantage of the historically narrow yield differential between
corporate and Treasury bonds with similar maturities. Although both the
fundamentals - factors relating to the fiscal health of issuers - and
technicals - the supply of and demand for corporate issues - of the
corporate market are in good shape, the overall valuation of that market
has been increasingly less attractive because corporates have become
relatively expensive.
Q. WHY DID YOU ADD TO YOUR STAKE IN COMMERCIAL MORTGAGE-BACKED INVESTMENTS,
WHICH MADE UP ABOUT 11% OF THE FUND AT THE END OF THE PERIOD?
A. This market is comprised of debt issues secured by the mortgages on
commercial properties. It is an evolving market that provides greater yield
and return potential than similar quality corporate securities. It has done
well over the past six months, as the market has matured and the buyer
universe has grown, increasing liquidity.
Q. LET'S TURN TO THE THIRD AREA YOU MENTIONED, YIELD CURVE POSITIONING.
A. I took advantage of the flattening of the yield curve -when the yield
difference between long-term rates and short-term rates diminishes -by
selling very short, three- to six-month securities, and long, five-year
securities, and purchasing two-year issues. This made sense to me given the
relative historical flatness of the yield curve, and limited the risk to
the fund should the yield curve steepen, with long-term rates going up more
than short-term rates.
Q. THE OVERALL CREDIT QUALITY OF THE FUND IS HIGHER THAN IT WAS SIX MONTHS
AGO. WHY IS THAT?
A. Broadly speaking, at the end of the period the yield difference between
lower-quality and higher-quality corporate securities was as low as it had
been for quite a long time. I took advantage of this by swapping
lower-quality issues for higher-quality securities. This led to a
higher-quality portfolio, with the benefit of not having given up too much
yield. In addition, the commercial mortgage-backed securities purchased
were primarily high-quality - AA- or AAA-rated - issues.
Q. BEYOND COMMERCIAL MORTGAGE-BACKED SECURITIES, IS THERE A PARTICULAR
SECTOR OF THE MARKET YOU'VE BEEN
FOCUSING ON?
A. I've continued to invest in asset-backed securities - bonds issued by
creditors that are backed by loans or credit payments. As of October 31,
1995, asset-backeds comprised 7.2% of the fund's investments. Even though
yield spreads have tightened in this market - with yields falling and
prices rising, relative to Treasuries - value still existed based on the
securities' strong credit quality, liquidity and highly predictable cash
flows. The focus of my asset-backed investments has been in the credit card
and auto finance markets.
Q. WHAT OTHER PARTS OF THE MARKET HAVE YOU BEEN KEEPING YOUR EYE ON?
A. I've been paying close attention to events in the electric utility
market. Over the past year, there has been increased scrutiny applied to
this market, because of concerns related to deregulation and greater
competition. This has caused security valuation in the electric utility
market to be relatively volatile. At the end of the period, the fund's
stake in electric utilities was relatively light at 2.3% of investments,
and was focused primarily on securities that mature in the next six months.
As the market continues to respond to the concerns of increased competitive
environment, I will continue to search for undervalued securities.
Currently, however, valuations aren't at a level where I would feel
comfortable adding positions.
Q. WHAT'S YOUR OUTLOOK?
A. I consider the fund to be defensively positioned at this time. This
comes not from a particular concern over the direction of the economy, but
more from the historically high valuations that exist within many of the
investment alternatives available in the short-maturity sector of the
market. I will continue to focus on special situations that look to provide
value in the market, but don't expect to significantly change the overall
structure of the fund until we see greater variations within the various
subsectors of the market, such as corporates and mortgages.

FUND FACTS
GOAL: high current income
consistent with preservation
of capital by investing
primarily in a broad range of
investment grade,
fixed-income
securities
START DATE: September 15,
1986
SIZE: as of October 31, 1995,
more than $1.2 billion
MANAGER: Charles Morrison,
since February 1995; also
manages Fidelity Advisor Short
Fixed-Income Fund and
Spartan Short-Term Income
Fund, both since February
1995; Vice President of
Fidelity Management Trust
Company since 1992;
joined Fidelity in 1987
(checkmark)
CHARLIE MORRISON ON THE
FEDERAL BUDGET AND THE FEDERAL
RESERVE BOARD:
"There has been a great deal
of discussion lately about
Washington's attempt to
reduce government spending
and the federal budget deficit.
Generally, reduced
government spending leads
to a drag on the economy. In
such a scenario, it would not
be unusual for the Federal
Reserve Board to ease
monetary policy by lowering
interest rates. This is similar
to how the Fed might increase
rates to curb growth and
inflation in a period of high
government spending.
"In terms of overall strategic
direction for the fund, I'll
continue to focus less on
active interest rate
forecasting and more on
adding value through
research-driven security
selection, market sector
rotation, yield curve
positioning and opportunistic
trading."
INVESTMENT CHANGES

QUALITY DIVERSIFICATION AS OF OCTOBER 31, 1995
(MOODY'S RATINGS) % OF FUND'S % OF FUND'S INVESTMENTS
INVESTMENTS 6 MONTHS AGO

Aaa 61.9 46.8

Aa 0.1 0.2

A 13.2 18.6

Baa 13.0 23.3

Ba 2.1 5.8

Not rated 9.7 4.9

TABLE EXCLUDES SHORT-TERM INVESTMENTS. UNRATED DEBT SECURITIES THAT ARE
EQUIVALENT TO BA AND BELOW AT OCTOBER 31, 1995 AND APRIL 30, 1995 ACCOUNT
FOR 1.8% AND 0.3%, RESPECTIVELY, OF THE FUND'S INVESTMENTS.
AVERAGE YEARS TO MATURITY AS OF OCTOBER 31, 1995
6 MONTHS AGO

Years 2.1 2.3

AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY DOLLAR
AMOUNT.
DURATION AS OF OCTOBER 31, 1995
6 MONTHS AGO

Years 1.7 1.7

DURATION SHOWS HOW MUCH A BOND'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
AS OF OCTOBER 31, 1995* AS OF APRIL 30, 1995**
27.3.3
Row: 1, Col: 1, Value: 3.0
Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 11.8
Row: 1, Col: 4, Value: 54.4
Row: 1, Col: 5, Value: 30.8
Row: 1, Col: 1, Value: 2.6
Row: 1, Col: 2, Value: 1.4
Row: 1, Col: 3, Value: 6.6
Row: 1, Col: 4, Value: 38.8
Row: 1, Col: 5, Value: 50.6
Corporate bonds 30.8%
U.S. government
and agency
obligations 55.4%
Mortgage-backed
securities 11.8%
Short-term
investments 0.0%
Other investments 2.0%
Corporate bonds 52.6%
U.S. government
and agency
obligations 38.8%
Mortgage-backed
securities 6.6%
Short-term
investments 0.4%
Other investments 1.6%
FOREIGN
INVESTMENTS 0.8%
**
*
FOREIGN
INVESTMENTS 0.1%
INVESTMENTS OCTOBER 31, 1995 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

NONCONVERTIBLE BONDS - 30.8%
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
AEROSPACE & DEFENSE - 0.1%
SHIP BUILDING & REPAIR - 0.1%
Tennessee Gas Pipeline Co.
9 1/4%, 5/15/96 Baa2 $ 1,420 $ 1,442
BASIC INDUSTRIES - 0.8%
CHEMICALS & PLASTICS - 0.8%
Methanex Corp.
8 7/8%, 11/15/01 A3 8,440 9,252
FINANCE - 18.8%
ASSET-BACKED SECURITIES - 8.7%
Boatmens Auto Trust 6.35%, 10/15/01 A2 1,375 1,379
Case Equipment Loan Trust:
6.15%, 9/15/02 Aaa 15,090 15,128
6.45%, 9/15/02 A3 3,000 3,008
Caterpillar Financial Asset Trust
6.65%, 6/25/00 A2 3,240 3,255
Concord Leasing, Inc. (c):
5.04%, 7/15/98 AAA 1,526 1,507
5.31%, 1/20/99 AAA 1,090 1,077
Discover Card Master Trust I 6.90%, 2/16/00 A2 4,030 4,090
Discover Card Trust:
7 7/8%, 4/16/98 A2 1,170 1,177
6 1/8%, 5/15/98 A2 2,100 2,096
General Motors Acceptance Corp. Grantor Trust
1995-A, 7.15%, 3/15/00 Aaa 12,142 12,317
KeyCorp Auto Grantor Trust 5.80%, 7/15/00 A3 1,244 1,238
MBNA Master Credit Card Trust
7 3/4%, 10/15/98 Aaa 2,150 2,183
Midlantic Grantor Trust, Class B,
5.15%, 9/15/97 A1 716 715
Premier Auto Trust:
4.95%, 2/2/99 A2 408 403
8.05%, 4/4/00 Aaa 11,500 12,053
SCFC Recreational Vehicle Loan Trust
7 1/4%, 9/15/06 Aaa 613 617
Standard Credit Card Master Trust I:
participation certificates, 9%, 8/7/97 A2 4,200 4,291
8 1/4%, 10/7/97 A2 14,370 14,648
4.85%, 3/7/99 A2 2,500 2,455
7.65%, 2/15/00 A2 1,800 1,857
6 3/4%, 6/07/00 Aaa 10,700 10,891
NONCONVERTIBLE BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
FINANCE - CONTINUED
ASSET-BACKED SECURITIES - CONTINUED
Toyota Auto Receivables Grantor Trust
6.15%, 1/15/99 Baa2 $ 2,329 $ 2,321
Union Acceptance Corp. 7.075%, 7/10/02 Baa2 1,685 1,696
United Federal Savings Bank Grantor Trust :
6.975%, 7/10/00 Baa2 1,401 1,412
7.275%, 11/10/00 Baa2 1,399 1,415
8.20%, 1/10/01 Baa2 1,237 1,270
104,499
BANKS - 4.5%
Bank of Boston Corp. 9 1/2%, 8/15/97 Baa1 2,315 2,447
Chemical Bank Corp. euro 0%, 2/16/97 Baa1 1,000 920
Continental Bank Mortgage Corp.
9 7/8%, 6/15/96 A2 4,600 4,698
First Bank Systems, Inc. 9.89%, 3/6/96 A3 650 659
First Fidelity Bancorporation 8 1/2%, 4/1/98 A3 2,200 2,317
Fleet/Norstar Financial Group, Inc.
7.65%, 3/1/97 A2 5,000 5,094
KeyCorp:
8.96%, 5/30/96 A1 2,000 2,031
7.10%, 3/28/97 A1 3,180 3,225
Manufacturers Hanover Trust, NY euro
6.1875%, 7/15/97 (d) A3 12,400 12,385
Marine Midland Banks, Inc. 8 5/8%, 3/1/97 Baa1 19,567 20,114
Mellon Financial Co. 6 1/2%, 12/1/97 A2 1,000 1,009
54,899
CREDIT & OTHER FINANCE - 4.6%
Advanta Corp. 8.18%, 2/9/97 Baa3 3,970 4,062
Aristar, Inc. 7 3/8%, 2/15/97 A3 2,000 2,031
Chrysler Financial Corp. 6 1/2%, 5/27/97 A3 3,000 3,015
Ford Motor Credit Corp.:
9%, 6/28/96 A2 950 968
6.05%, 3/31/98 A1 3,170 3,168
General Motors Acceptance Corp.:
7 3/4%, 1/17/97 A3 6,890 7,028
7.60%, 2/10/97 A3 1,000 1,019
7 7/8%, 2/27/97 A3 4,920 5,035
7.90%, 3/12/97 A3 8,070 8,265
7 1/8%, 5/23/97 A3 1,600 1,626
NONCONVERTIBLE BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
FINANCE - CONTINUED
CREDIT & OTHER FINANCE - CONTINUED
Greyhound Financial Corp.:
6.94%, 1/28/98 Baa2 $ 4,000 $ 4,054
6.95%, 1/28/98 Baa2 2,000 2,027
Westinghouse Credit Corp.:
8.79%, 5/22/96 Ba1 12,000 12,113
8.84%, 10/21/96 Ba1 600 612
9.06%, 6/3/98 Ba1 1,000 1,051
56,074
INSURANCE - 0.5%
ITT Hartford Group, Inc. 7 1/4%, 12/1/96 A1 5,700 5,762
SAVINGS & LOANS - 0.5%
Golden West Financial Corp.
10 1/4%, 5/15/97 A3 5,350 5,668
TOTAL FINANCE 226,902
HEALTH - 0.4%
MEDICAL EQUIPMENT & SUPPLIES - 0.4%
Cardinal Distribution, Inc. 8%, 3/1/97 A3 5,000 5,098
INDUSTRIAL MACHINERY & EQUIPMENT - 0.5%
ELECTRICAL EQUIPMENT - 0.2%
Westinghouse Electric Corp. 7 3/4%, 4/15/96 Ba1 2,000 2,011
INDUSTRIAL MACHINERY & EQUIPMENT - 0.3%
Tenneco Corp. gtd. 11%, 11/15/95 Baa2 3,400 3,400
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 5,411
MEDIA & LEISURE - 2.2%
LEISURE DURABLES & TOYS - 2.2%
Brunswick Corp. 8 1/8%, 4/1/97 Baa1 11,525 11,722
Mattel, Inc. 6 7/8%, 8/1/97 Baa1 15,150 15,233
26,955
NONCONVERTIBLE BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
NONDURABLES - 0.2%
TOBACCO - 0.2%
Philip Morris Companies, Inc.
8 7/8%, 7/1/96 A2 $ 1,990 $ 2,029
RETAIL & WHOLESALE - 1.8%
GENERAL MERCHANDISE STORES - 0.9%
Sears, Roebuck & Co.:
8.95%, 11/27/96 A2 545 562
9.22%, 1/30/97 A2 3,760 3,906
7 3/4%, 2/27/97 A2 4,890 5,002
7.30%, 6/12/97 A2 545 556
10,026
GROCERY STORES - 0.9%
American Stores Co.:
8.21%, 4/16/97 Baa3 1,000 1,026
8 1/4%, 4/21/98 Baa3 4,700 4,894
8.44%, 4/24/98 Baa3 4,700 4,914
10,834
TOTAL RETAIL & WHOLESALE 20,860
TECHNOLOGY - 1.9%
COMPUTERS & OFFICE EQUIPMENT - 1.9%
Comdisco, Inc.:
6.89%, 8/30/96 Baa2 5,490 5,524
7 3/4%, 1/29/97 Baa2 4,000 4,071
7.73%, 2/18/97 Baa2 10,950 11,144
7 1/4%, 4/15/98 Baa2 2,320 2,370
23,109
TRANSPORTATION - 1.2%
AIR TRANSPORTATION - 0.8%
AMR Corp.:
9.76%, 1/11/96 Baa3 900 905
7 3/4%, 12/1/97 Baa3 7,520 7,673
9 1/2%, 7/15/98 Baa3 1,280 1,373
9,951
NONCONVERTIBLE BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
TRANSPORTATION - CONTINUED
TRUCKING & FREIGHT - 0.4%
Federal Express Corp. 9 3/4%, 5/15/96 Baa2 $ 4,600 $ 4,683
TOTAL TRANSPORTATION 14,634
UTILITIES - 2.9%
ELECTRIC UTILITY - 2.3%
Gulf States Utilities Co. 5%, 1/1/96 Baa3 1,200 1,197
Long Island Lighting Co. 8 3/4%, 5/1/96 Baa3 9,395 9,510
Public Service Co. of New Hampshire 1st mtg.:
8 7/8%, 5/15/96 Ba1 6,550 6,662
9.17%, 5/15/98 Ba1 3,250 3,426
United Illuminating Co. 7 3/8%, 1/15/98 Baa3 6,550 6,677
27,472
GAS - 0.6%
Florida Gas 7 3/4%, 11/1/97 (c) Baa2 3,570 3,670
Transcontinental Gas Pipe Line Corp.
9%, 11/15/96 Baa1 1,370 1,408
extendible 6.21%, 5/15/00 Baa1 2,800 2,799
7,877
TOTAL UTILITIES 35,349
TOTAL NONCONVERTIBLE BONDS
(Cost $370,575) 371,041
U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS - 55.4%
U.S. TREASURY OBLIGATIONS - 52.5%
4 3/8%, 11/15/96 Aaa 2,375 2,345
7 1/4%, 11/15/96 Aaa 138,180 140,425
8 1/2%, 5/15/97 Aaa 16,316 16,999
8 3/4%, 10/15/97 Aaa 141,950 150,023
5 1/8%, 3/31/98 Aaa 163,385 161,369
9%, 5/15/98 Aaa 4,610 4,967
9 1/4%, 8/15/98 Aaa 74,695 81,418
9 1/8%, 5/15/99 Aaa 5,500 6,082
7 3/4%, 12/31/99 Aaa 65,425 70,056
TOTAL U.S. TREASURY OBLIGATIONS 633,684
U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS - CONTINUED
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
U.S. GOVERNMENT AGENCY OBLIGATIONS - 2.9%
Federal Home Loan Mortgage Corp.
4.78%, 2/10/97 (callable) Aaa $ 1,650 $ 1,627
Government Trust Certificates:
(assets of Trust guaranteed by U.S. government
through Defense Security Assistance Agency):
Class 1-C 9 1/4%, 11/15/01 Aaa 2,962 3,259
Class 3-B 8.55%, 11/15/97 Aaa 2,894 2,946
(assets of Trust guaranteed by U.S. Government
through Export-Import Bank):
Series 1994-C, 6.61%, 9/15/99 Aaa 760 769
Series 1995-A, 6.28%, 6/15/04 Aaa 4,517 4,522
Private Export Funding Corp.
Series CC, 9 1/2%, 3/31/99 Aaa 700 774
6.86%, 4/30/04 Aaa 1,544 1,576
State of Israel (guaranteed by U.S. Government
through Agency for International Development):
5 1/4%, 3/15/98 Aaa 5,340 5,275
4 7/8%, 9/15/98 Aaa 4,490 4,378
6%, 2/15/99 Aaa 1,670 1,675
7 3/4%, 11/15/99 Aaa 6,910 7,321
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS 34,122
TOTAL U.S. GOVERNMENT AND
GOVERNMENT AGENCY OBLIGATIONS
(Cost $658,522) 667,806
COLLATERALIZED MORTGAGE OBLIGATIONS - 0.5%
PRIVATE SPONSOR - 0.3%
General Electric Capital Mortgage Services, Inc.
planned amortization class Series 1993-18
Class A-5, 6%, 2/25/02 AAA 3,965 3,945
U.S. GOVERNMENT AGENCY OBLIGATIONS - 0.2%
Federal National Mortgage Association planned
amortization class Series 155-PC,
5 1/4%, 3/25/13 Aaa 2,610 2,575
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $6,472) 6,520
COMMERCIAL MORTGAGE SECURITIES - 11.3%
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
CS First Boston Mortgage Securities Corp.
commercial:
floater Series 1994-CFB1
Class A-1, 6.425%, 1/25/28 (d) Aaa $ 8,191 $ 8,180
Series 1995-AEWI Class A1,
6.665%, 11/25/27 AAA 3,700 3,698
FDIC commercial Series 1994-C1 Class II-A1,
6.30%, 9/25/25 Aaa 2,799 2,797
Kearny Street Mortgage commercial (c):
Class II-B, 6.60%, 10/15/02 - 2,200 2,205
Class II-C, 7.30%, 10/15/03 - 900 903
Class II-D, 7 3/4%, 10/15/05 - 600 602
floater Series 1995-1 Class A-1,
7.0399%, 2/20/30 (d) AAA 1,785 1,812
Lennar Central Partner LP commercial (c):
floater Series 1994-1 Class B,
6 7/8%, 9/15/01 (d) - 10,631 10,634
Series 1995-1 Class C, 7.55%, 5/15/03 - 2,700 2,700
Meritor Mortgage Security Corp. commercial
Series 1987-1 Class A-3, 9.40%, 6/1/99 Baa3 2,822 2,843
Merrill Lynch Mortgage Investments, Inc.
commercial Series 1995-C2, Class A-1,
7.38%, 6/15/21 Aaa 2,100 2,137
Morgan Stanley Capital commercial
Series 1995-1 Class A1, 7%, 2/15/02 (c) AAA 12,995 13,150
Nomura Asset Securities Corp. commercial
floater Series 1994-MD-II Class
A-6, 7.14%, 7/4/03 (d) - 2,952 2,936
Oregon pass thru certificates commercial
Series 1995 Class 1-A, 7.15%, 6/25/26 (c) AAA 10,609 10,649
Resolution Trust Corp. commercial:
floater (d):
Series 1992-C3 Class A-2,
6.725%, 8/25/23 Aa2 989 990
Series 1993-C2 Class A-2,
6.8075%, 3/25/25 AAA 7,656 7,704
Series 1994-C1 Class A-3,
6.4875%, 6/25/26 AAA 6,590 6,586
Resolution Trust Corp. commercial: - continued
Series 1994-C1 Class A-4, 7 1/4%,
6/25/26 AAA 2,385 2,378
Series 1994-C2 Class A-4, 7 1/2%,
4/25/25 AAA 1,591 1,593
Series 1994-C2 Class A-2, 7 3/4%,
4/25/25 AAA 1,172 1,177
Series 1994-N2 Class 3, 7 1/2%,
12/15/04 (c) Baa2 6,800 6,830
Series 1995-C1 Class A-2A, 6 1/4%,
2/25/27 Aaa 4,476 4,454
Series 1995-C1 Class A-4A, 6 1/4%,
2/25/27 Aaa 2,648 2,635
COMMERCIAL MORTGAGE SECURITIES - CONTINUED
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
SC Finance Corp. commercial floater
7.382%, 8/1/04 (c)(d) - $ 9,400 $ 9,441
SKW Real Estate LP commercial (c):
Class A, 6.45%, 4/15/02 (b) AA 6,087 6,093
Series II Class C, 7.45%, 4/15/03 BBB 3,800 3,810
Structured Asset Securities Corp. commercial
Series 1993-C1 Class A-1,
6.60%, 10/25/24 AA+ 2,887 2,874
Whitehall Partners commercial Series 1995-C1
Class A-2, 6.91%, 7/20/25 (c) - 14,863 14,965
TOTAL COMMERCIAL MORTGAGE SECURITIES
(Cost $136,310) 136,776
CERTIFICATES OF DEPOSIT - 0.3%
Advanta National Bank 6.26%, 9/1/97
(Cost $3,996) - 4,000 4,000
MUNICIPAL SECURITIES - 1.7%
Louisiana Pub. Facs. Auth. Rev.
9.95%, 6/1/96 A3 16,735 17,096
Shreveport Louisiana Water & Sewer Rev.
Taxable Rfdg. 0%, 12/1/96 Aaa 3,500 3,285
TOTAL MUNICIPAL SECURITIES
(Cost $21,305) 20,381
REPURCHASE AGREEMENTS - 0.0%
MATURITY
AMOUNT (000S)
Investments in repurchase agreements
(U.S. Treasury obligations) in a
joint trading account at 5.88%,
dated 10/31/95 due 11/1/95 $ 254 254
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $1,197,434) $ 1,206,778
LEGEND
6. Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
7. Debt obligation initially issued at one coupon which converts to a
higher coupon at a specified date.
8. Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $90,048,000 or 7.4% of net
assets.
9. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows:
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 75.2% AAA, AA, A 77.5%
Baa 13.0% BBB 14.4%
Ba 2.1% BB 1.7%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%The percentage not rated by either S&P or Moody's amounted to
4.0%.
INCOME TAX INFORMATION
At October 31, 1995, the aggregate cost of investment securities for income
tax purposes was $1,197,441,000. Net unrealized appreciation aggregated
$9,337,000, of which $14,380,000 related to appreciated investment
securities and $5,043,000 related to depreciated investment securities.
At April 30, 1995, the fund had a capital loss carryforward of
approximately $61,551,000 of which $873,000, $6,892,000, $7,352,000,
$2,771,000, $4,373,000 and $39,290,000 will expire on April 30, 1996, 1997,
1998, 1999, 2002 and 2003, respectively.
The fund intends to elect to defer to its fiscal year ending April 30, 1996
approximately $88,633,000 of losses recognized during the period November
1, 1994 to April 30, 1995.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDSAMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNT) OCTOBER 31, 1995
(UNAUDITED)

ASSETS

Investment in securities, at value (including repurchase $ 1,206,778
agreements of $254) (cost $1,197,434) -
See accompanying schedule

Interest receivable 18,821

Other receivables 39

TOTAL ASSETS 1,225,638

LIABILITIES

Payable for fund shares redeemed $ 1,714

Distributions payable 721

Accrued management fee 462

Other payables and accrued expenses 325

TOTAL LIABILITIES 3,222

NET ASSETS $ 1,222,416

Net Assets consist of:

Paid in capital $ 1,367,593

Distributions in excess of net investment income (18,386)

Accumulated undistributed net realized gain (loss) on (136,195)
investments and foreign currency transactions

Net unrealized appreciation (depreciation) on 9,404
investments and assets and liabilities in foreign
currencies

NET ASSETS, for 138,309 shares outstanding $ 1,222,416

NET ASSET VALUE, offering price and redemption price per $8.84
share ($1,222,416 (divided by) 138,309 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDSAMOUNTS IN THOUSANDS SIX MONTHS ENDED OCTOBER 31, 1995
(UNAUDITED)

INVESTMENT INCOME $ 44,028
Interest

EXPENSES

Management fee $ 2,862

Transfer agent fees 1,257

Accounting fees and expenses 180

Non-interested trustees' compensation 3

Custodian fees and expenses 19

Registration fees 21

Audit 24

Legal 3

TOTAL EXPENSES 4,369

NET INVESTMENT INCOME 39,659

REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:

Investment securities 3,694

Foreign currency transactions (1,792) 1,902

Change in net unrealized appreciation (depreciation) on:

Investment securities 15,218

Assets and liabilities in foreign currencies 31 15,249

NET GAIN (LOSS) 17,151

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 56,810
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS YEAR ENDED
ENDED OCTOBER APRIL 30,
31,1995 1995
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

Operations $ 39,659 $ 107,182
Net investment income

Net realized gain (loss) 1,902 (146,282)

Change in net unrealized appreciation (depreciation) 15,249 69,532

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 56,810 30,432
FROM OPERATIONS

Distributions to shareholders (39,182) (81,691)
From net investment income

Return of capital (Note 1) - (22,323)

TOTAL DISTRIBUTIONS (39,182) (104,014)

Share transactions 187,386 686,551
Net proceeds from sales of shares

Reinvestment of distributions 34,396 89,372

Cost of shares redeemed (320,514) (1,361,013)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (98,732) (585,090)
FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS (81,104) (658,672)

NET ASSETS

Beginning of period 1,303,520 1,962,192

End of period (including distributions in excess of net $ 1,222,416 $ 1,303,520
investment income of $18,386 and $18,863,
respectively)

OTHER INFORMATION
Shares

Sold 21,226 77,385

Issued in reinvestment of distributions 3,895 10,112

Redeemed (36,321) (154,192)

Net increase (decrease) (11,200) (66,695)

</TABLE>

FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED APRIL 30,
ENDED
OCTOBER 31, 1995

(UNAUDITED) 1995 1994 C 1993 1992 1991

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA

Net asset value, $ 8.720 $ 9.080 $ 9.510 $ 9.430 $ 9.180 $ 9.170
beginning of
period

Income from .266 .462 .588 .744 .810 .792
Investment
Operations
Net investment
income

Net realized and .127 (.274) (.392) .063 .251 .040
unrealized
gain (loss)

Total from .393 .188 .196 .807 1.061 .832
investment
operations

Less Distributions (.273) (.430) (.592) (.727) (.811) (.822)
From net
investment income

In excess of net - - (.034) - - -
investment
income

Return of capital - (.118) - - - -

Total distributions (.273) (.548) (.626) (.727) (.811) (.822)

Net asset value, end of $ 8.840 $ 8.720 $ 9.080 $ 9.510 $ 9.430 $ 9.180
period

TOTAL RETURN B 4.55% 2.17% 1.99% 8.85% 12.00% 9.49%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of $ 1,222 $ 1,304 $ 1,962 $ 1,990 $ 984 $ 235
period (in millions)

Ratio of expenses to .68% .69% .80% .77% .86% .83%
average net assets A

Ratio of net investment 6.21% 6.37% 6.70% 7.68% 8.23% 8.65%
income to average A
net assets

Portfolio turnover rate 163% 113% 73% 63% 87% 164%
A

</TABLE>

A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C EFFECTIVE MAY 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION 93-2,
"DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF INCOME,
CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES."
AS A RESULT, NET INVESTMENT INCOME PER SHARE MAY REFLECT CERTAIN
RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
NOTES TO FINANCIAL STATEMENTS
For the period ended October 31, 1995 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Short-Term Bond Portfolio (the fund) is a fund of Fidelity
Fixed-Income Trust (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 following
summarizes the significant accounting policies of the fund:
SECURITY VALUATION. Securities are valued based upon a computerized matrix
system and/or appraisals by a pricing service, both of which consider
market transactions and dealer-supplied valuations. Short-term securities
maturing within sixty days of their purchase date are valued either at
amortized cost or original cost plus accrued interest, both of which
approximate current value. Securities for which market quotations are not
readily available are valued at their fair value as determined in good
faith under consistently applied procedures under the general supervision
of the Board of Trustees.
FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Purchases and
sales of securities, income receipts, and expense payments are translated
into U.S. dollars at the prevailing exchange rate on the respective dates
of the transactions.
Net realized gains and losses on foreign currency transactions represent
net gains and losses from sales and maturities of forward currency
contracts, disposition of foreign currencies, currency gains and losses
realized between the trade and settlement dates on securities transactions,
and the difference between the amount of net investment income accrued and
the U.S. dollar amount actually received. The effects of changes in foreign
currency exchange rates on investments in securities are included with the
net realized and unrealized gain or loss on investment securities.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes substantially all of its taxable income for
its fiscal year. The schedule of investments includes information regarding
income taxes under the caption "Income Tax Information."
INVESTMENT INCOME. Interest income, which includes accretion of original
issue discount, is accrued as earned.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are declared daily and paid
monthly from net investment income. Distributions from realized gains, if
any, are recorded on the ex-dividend date.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences, which may result in distribution
reclassifications, are primarily due to differing treatments for paydown
gains/losses on certain securities, foreign currency transactions, market
discount, capital loss carryforwards and losses deferred due to wash sales
and excise tax regulations.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect the per-share allocation between net investment income and realized
and unrealized gain (loss). Distributions in excess of net investment
income and accumulated undistributed net realized gain (loss) on
investments and foreign currency transactions may include temporary book
and tax basis differences that will reverse in a subsequent period. Any
taxable income or gain remaining at fiscal year end is distributed in the
following year.
For the period ended April 30, 1995, the fund's distributions exceeded the
aggregate amount of taxable income and net realized gains resulting in a
return of capital. This was due to certain foreign currency losses which
decreased taxable income available for distribution after certain
distributions had been made. (The tax treatment of distributions for the
1995 calendar year will be reported to shareholders prior to February 1,
1996.)
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
FORWARD FOREIGN CURRENCY CONTRACTS. The fund may use foreign currency
contracts to facilitate transactions in foreign securities and to manage
the fund's currency exposure. Contracts to buy generally are used to
acquire exposure to foreign currencies, while contracts to sell are used to
hedge the fund's investments against currency fluctuations. Also, a
contract to buy or sell can offset a previous contract. Losses may arise
from changes in the value of the foreign currency or if the counterparties
do not perform under the contracts' terms.
The U.S. dollar value of forward foreign currency contracts is determined
using forward currency exchange rates supplied by a quotation service.
Purchases and sales of forward foreign currency contracts having the same
settlement date and broker are offset and any realized gain (loss) is
recognized on the date of offset; otherwise, gain (loss) is recognized on
settlement date.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other affiliated
entities of Fidelity Management & Research Company (FMR), may transfer
uninvested cash balances into one or more
2. OPERATING POLICIES - CONTINUED
JOINT TRADING ACCOUNT - CONTINUED
joint trading accounts. These balances are invested in one or more
repurchase agreements that mature in 60 days or less from the date of
purchase, and are collateralized by U.S. Treasury or Federal Agency
obligations.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying U.S. Treasury or Federal Agency Securities, the market
value of which is required to be at least equal to the repurchase price.
For term repurchase agreement transactions, the underlying securities are
marked-to-market daily and maintained at a value at least equal to the
repurchase price. FMR, the fund's investment adviser, is responsible for
determining that the value of the underlying securities remains in
accordance with the market value requirements stated above.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $1,011,773,000 and $1,111,496,000, respectively, of which U.S.
government and government agency obligations aggregated $920,731,000 and
$705,579,000, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly
fee that is calculated on the basis of a group fee rate plus a fixed
individual fund fee rate applied to the average net assets of the fund. The
group fee rate is the weighted average of a series of rates and is based on
the monthly average net assets of all the mutual funds advised by FMR. The
rates ranged from .1200% to .3700% for the period. In the event that these
rates were lower than the contractual rates in effect during the period,
FMR voluntarily implemented the above rates, as they resulted in the same
or a lower management fee. The annual individual fund fee rate is .30%. For
the period, the management fee was equivalent to an annualized rate of .45%
of average net assets.
DISTRIBUTION AND SERVICE PLAN. Pursuant to the Distribution and Service
Plan (the Plan), and in accordance with Rule 12b-1 of the 1940 Act, FMR or
the fund's distributor, Fidelity Distributors Corporation (FDC), an
affiliate of FMR, may use their resources to pay administrative and
promotional expenses related to the sale of the fund's shares. Subject to
the approval of the Board of Trustees, the Plan also authorizes payments to
third parties that assist in the sale of the fund's shares or render
shareholder support services. FMR or FDC has informed the fund that
payments made to third parties under the Plan amounted to $46,000 for the
period.
TRANSFER AGENT FEES. Fidelity Service Co. (FSC), an affiliate of FMR, is
the fund's transfer, dividend disbursing and shareholder servicing agent.
FSC receives account fees and asset-based fees
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT FEES - CONTINUED
that vary according to account size and type of account. FSC pays for
typesetting, printing and mailing of all shareholder reports, except proxy
statements.
ACCOUNTING FEES. FSC maintains the fund's accounting records. The fee is
based on the level of average net assets for the month plus out-of-pocket
expenses.
TO CALL FIDELITY

If more than one address is listed, please locate the address that is
closest to you. We'll give your correspondence immediate attention and send
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P.O. Box 770001
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Attn: Redemptions - CP6I
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OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6R
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
INVESTMENT ADVISER
Fidelity Management & Research
Company Boston, MA
INVESTMENT SUB-ADVISERS
Fidelity Management & Research (U.K.) Inc., London, England
Fidelity Management & Research
(Far East) Inc., Tokyo, Japan
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Fred L. Henning, Jr., Vice President
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
CUSTODIAN
The Bank of New York
New York, NY
FIDELITY'S TAXABLE BOND FUNDS
Capital & Income
Ginnie Mae
Global Bond
Government Securities
Intermediate Bond
Investment Grade Bond
Mortgage Securities
New Markets Income
Short-Intermediate Government
Short-Term Bond
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Spartan Ginnie Mae
Spartan Government Income
Spartan High Income
Spartan Investment Grade Bond
Spartan Limited Maturity
Government
Spartan Long-Term Government Bond
Spartan Short-Intermediate
Government
Spartan Short-Term Income
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
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Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)

(registered trademark)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
TO VISIT FIDELITY

(2_FIDELITY_LOGOS)SPARTAN(registered trademark)

GOVERNMENT INCOME
FUND
SEMIANNUAL REPORT
OCTOBER 31, 1995
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

FUND TALK 7 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 10 A summary of major shifts in the
fund's investments over the past six
months.

INVESTMENTS 11 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 16 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 20 Notes to the financial statements.

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. A fund's total
return includes changes in a fund's share price, reinvestment of any
dividends (or income) and capital gains (the profits the fund earns when it
sells bonds that have grown in value), and the effect of the $5 account
closeout fee on an average sized account. You can also look at the fund's
income to measure performance. If Fidelity had not reimbursed certain fund
expenses, the past five years and life of fund total returns would have
been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1995 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

Spartan Government Income 8.22% 15.63% 52.39% 85.64%

Salomon Brothers Treasury/Agency Index 8.34% 15.45% 57.76% n/a

Average General U.S. Government Bond 7.78% 14.70% 51.19% n/a
Fund

Consumer Price Index 1.18% 2.81% 15.13% 27.55%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, five years or since
the fund started on December 20, 1988. For example, if you invested $1,000
in a fund that had a 5% return over the past year, the value of your
investment would be $1,050. You can compare the fund's returns to the
performance of the Salomon Brothers Treasury/Agency Index - a broad measure
of the performance of U.S. government bonds. To measure how the fund's
performance stacked up against its peers, you can compare it to the average
general U.S. government bond fund, which reflects the performance of 185
funds with similar objectives tracked by Lipper Analytical Services over
the past six months. This benchmark includes reinvested dividends and
capital gains, if any. Comparing the fund's performance to the consumer
price index (CPI) helps show how your fund did compared to inflation. (The
CPI returns begin on the month end closest to the fund's start date.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Spartan Government Income 15.63% 8.79% 9.43%

Salomon Brothers Treasury/Agency Index 15.45% 9.55% n/a

Average General U.S. Government Bond Fund 14.70% 8.59% n/a

Consumer Price Index 2.81% 2.86% 3.62%

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
Spartan GovernmenSalomon Brothers T
12/31/88 10000.00 10000.00
01/31/89 10175.40 10134.27
02/28/89 10097.78 10056.19
03/31/89 10104.09 10115.66
04/30/89 10313.82 10305.03
05/31/89 10606.35 10567.01
06/30/89 10945.29 10924.95
07/31/89 11196.70 11152.26
08/31/89 10999.20 10963.62
09/30/89 11064.30 11013.97
10/31/89 11349.30 11300.03
11/30/89 11477.32 11406.57
12/31/89 11522.54 11423.72
01/31/90 11374.73 11266.46
02/28/90 11423.41 11275.95
03/31/90 11432.64 11287.26
04/30/90 11290.09 11192.03
05/31/90 11644.08 11492.68
06/30/90 11829.42 11675.85
07/31/90 12017.08 11830.92
08/31/90 11838.33 11659.79
09/30/90 11934.42 11782.76
10/31/90 12100.99 11976.14
11/30/90 12373.83 12233.01
12/31/90 12578.78 12426.75
01/31/91 12724.51 12558.47
02/28/91 12819.09 12611.74
03/31/91 12879.73 12680.70
04/30/91 13014.49 12831.76
05/31/91 13078.93 12876.64
06/30/91 13080.97 12868.25
07/31/91 13251.79 13030.61
08/31/91 13535.40 13320.68
09/30/91 13808.89 13608.93
10/31/91 13957.32 13714.01
11/30/91 14056.63 13856.68
12/31/91 14478.81 14332.10
01/31/92 14300.45 14110.26
02/29/92 14396.79 14166.82
03/31/92 14350.80 14081.44
04/30/92 14452.94 14182.14
05/31/92 14693.76 14428.80
06/30/92 14881.82 14638.60
07/31/92 15120.94 15001.64
08/31/92 15198.57 15155.62
09/30/92 15326.07 15365.05
10/31/92 15148.13 15142.12
11/30/92 15271.79 15114.39
12/31/92 15509.70 15369.80
01/31/93 15678.96 15714.60
02/28/93 15894.57 16021.09
03/31/93 15936.89 16064.14
04/30/93 16060.25 16202.07
05/31/93 16126.36 16177.62
06/30/93 16393.88 16540.66
07/31/93 16488.97 16642.46
08/31/93 16710.04 17012.44
09/30/93 16688.57 17087.61
10/31/93 16720.09 17132.85
11/30/93 16522.81 16944.58
12/31/93 16648.09 17020.10
01/31/94 16896.96 17253.99
02/28/94 16548.56 16894.95
03/31/94 16104.37 16501.62
04/30/94 15876.77 16374.65
05/31/94 15892.09 16358.96
06/30/94 15850.93 16325.39
07/31/94 16166.65 16610.36
08/31/94 16192.46 16614.73
09/30/94 15955.78 16381.95
10/31/94 15947.83 16365.53
11/30/94 15923.85 16329.40
12/31/94 16051.03 16441.78
01/31/95 16365.74 16763.97
02/28/95 16727.41 17115.34
03/31/95 16810.12 17217.13
04/30/95 17039.33 17438.98
05/31/95 17682.39 18154.12
06/30/95 17826.75 18291.68
07/31/95 17766.76 18228.19
08/31/95 17969.09 18436.53
09/30/95 18151.91 18602.91
10/31/95 18436.89 18892.98

$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Spartan
Government Income Fund on December 31, 1988, shortly after the fund
started. As the chart shows, by October 31, 1995, the value of your
investment would have grown to $18,442 - an 84.42% increase on your initial
investment. This assumes you still owned the fund on October 31, 1995, and
therefore does not include the effect of the $5 account closeout fee on an
average sized account. For comparison, look at how the Salomon Brothers
Treasury/Agency Index did over the same period. With dividends reinvested,
the same $10,000 investment would have grown to $18,893 - an 88.93%
increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is no
guarantee of how it will do
tomorrow. Bond prices, for
example, generally move in
the opposite direction of
interest rates. In turn, the
share price, return, and yield of
a fund that invests in bonds
will vary. That means if you
sell your shares during a
market downturn, you might
lose money. But if you can ride
out the market's ups and
downs, you may have a gain.
(checkmark)
TOTAL RETURN COMPONENTS
SIX MONTHS YEARS ENDED APRIL 30,
ENDED
OCTOBER 31,

1995 1995 1994 1993 1992 1991

Dividend return 3.41% 7.82% 5.09% 6.81% 8.22% 9.19%

Capital appreciation 4.81% -0.51% -6.24% 4.30% 2.82% 6.07%
return

Total return 8.22% 7.31% -1.15% 11.11% 11.04% 15.26%

DIVIDEND returns and capital appreciation returns are both part of a bond
fund's total return. A dividend return reflects the actual dividends paid
by the fund. A capital appreciation return reflects both the amount paid by
the fund to shareholders as capital gain distributions and changes in the
fund's share price. Both returns assume the dividends or gains are
reinvested. Capital appreciation and total returns include the effect of
the $5 account closeout fee on an average sized account.
DIVIDENDS AND YIELD
PERIODS ENDED OCTOBER 31, 1995 PAST PAST 6 PAST
MONTH MONTHS YEAR

Dividends per share 5.49(cents) 33.03(cents) 74.90(cents)

Annualized dividend rate 6.22% 6.38% 7.48%

30-day annualized yield 5.84% - -

DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on an average share price of $10.39 over
the past month, $10.27 over the past six months and $10.01 over the past
year, you can compare the fund's income over these three periods. The
30-day annualized YIELD is a standard formula for all funds based on the
yields of the bonds in the fund, averaged over the past 30 days. This
figure shows you the yield characteristics of the fund's investments at the
end of the period. It also helps you compare funds from different companies
on an equal basis.
FUND TALK: THE MANAGER'S OVERVIEW

An interview with Robert Ives, Portfolio Manager of Spartan Government
Income Fund
Q. SO, BOB, HOW DID THE FUND DO DURING THE SEMIANNUAL PERIOD?
A. Pretty well. For the six-month period ended October 31, 1995, the fund
had a total return of 8.22%. That topped the average U.S. government bond
fund, which returned 7.78% for the same period, as tracked by Lipper
Analytical Services. The fund's benchmark, the Salomon Brothers
Treasury/Agency Index, returned 8.34% for the period.
Q. IT APPEARS THE BOND MARKET CONTINUED TO PERFORM WELL . . .
A. Yes, it certainly did. Economic growth has slowed noticeably as 1995 has
progressed. This slowing of growth caused the bond market to rally as
inflation fears, which are sparked by signs of growth, waned. That caused a
general drop in interest rates, particularly in the longer maturity bonds
of the yield curve. In fact, the yield curve has flattened dramatically.
Q. WHAT AREAS OF THE BOND MARKET HELPED THE FUND THE MOST?
A. The chief reason for the very strong performance of the fund was its
position in U.S. Treasury bonds. In a bond rally, the greatest price
appreciation usually comes from the bonds with the longer maturities.
Therefore, the fund's Treasury holdings with maturities of 10 years or more
tended to help the most. The fund's holdings in
U.S. government agencies - such as Fannie Mae - performed well in the
period, as did most collateralized mortgage obligations or CMOs held by the
fund.
Q. WHAT INVESTMENTS DOES THE FUND HOLD IN THE CMO MARKET?
A. Planned amortization class bonds, or PACs, which are a class of CMOs.
PACs are known for the greater predictability of their cash flow relative
to the more common mortgage pass-through security. In the mortgage-backed
securities market, investors fear prepayment risk, or the possibility that
these securities' underlying pool of mortgages will be paid off early and
force bond holders to invest at less attractive rates. Because of certain
financial characteristics, PACs tend to lessen these risks. Earlier this
year, I bought these securities because their yields were much greater than
Treasury note yields. Today, I'm reducing the fund's position in PACs
because they have performed well relative to Treasuries and are not likely
to continue to do so.
Q. WERE THERE ANY DISAPPOINTMENTS?
A. Sure. While some PAC bonds performed well during the period, most
mortgage pass-through securities did not perform as well as Treasury
securities.
Q. WHAT ARE PASS-THROUGH SECURITIES, AND WHY DID THEY UNDERPERFORM
TREASURIES?
A. Mortgage pass-through securities - such as Ginnie Maes - represent
pooled mortgages whose principal and interest payments are "passed-through"
by Ginnie Mae to investors. As discussed before, when interest rates fall,
investors in mortgage-related securities fear increases in the prepayment
rates of the securities' underlying mortgages. Over the fund's reporting
period, increasing prepayment fears caused the prices of mortgage
pass-throughs to lag Treasury bonds.
Q. EARLIER, YOU DISCUSSED PREPAYMENT RISK. DO YOU ANTICIPATE LOWERING THE
FUND'S EXPOSURE TO MORTGAGE-BACKED SECURITIES BECAUSE OF PREPAYMENT RISKS?
A. If anything, I would consider adding to the fund's mortgage position. In
the past few months, mortgage securities have become even more attractive
as prepayment fears have been priced into the market and made mortgages
cheap relative to Treasuries. Should fears escalate, it could signal a
buying opportunity. That said, there are ways that I've attempted to limit
prepayment risk while still owning mortgage securities.
Q. SPECIFICALLY, HOW HAVE YOU DONE THAT?
A. I've done this by owning shorter duration CMOs and higher-coupon
seasoned mortgages - or those containing mortgage securities that have been
outstanding for 10 years or more. Fewer of these securities are likely to
have their mortgages paid off early.
Q. HOW IS THE FUND CURRENTLY STRUCTURED?
A. The fund currently has large positions in mortgage-backed securities,
U.S. government agencies and CMOs. In general, over the past few months
mortgage securities have come to offer a significant yield advantage over
Treasuries. During that time, rising prepayment fears have been priced in
the mortgage-related markets - thus making them cheap relative to
Treasuries. Additionally, the fund's duration - or its price sensitivity to
a given change in interest rates - is approximately that of the overall
market.
Q. WHAT'S YOUR MARKET OUTLOOK, BOB?
A. I think the most important thing in the next few months is the budget
situation in Washington. If the White House and Congress can make some
headway, I think it will be very positive for the bond market and it might
lead the Federal Reserve to ease short-term interest rates. That said,
however, it is unlikely investors will see the same stellar performance in
the bond market next year as we have seen in 1995.

COUPON DISTRIBUTION AS OF OCTOBER 31, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Under 5% 2.5 9.4

5 - 5.99% 7.7 10.1

6 - 6.99% 10.6 8.8

7 - 7.99% 6.1 8.3

8 - 8.99% 30.4 29.8

9 - 9.99% 24.3 22.1

10 - 10.99% 1.8 2.0

11 - 11.99% 5.3 1.5

12 - 12.99% 9.9 5.4

13% and over 0.4 0.5

Zero Coupon Bonds 0.2 0.2

COUPON DISTRIBUTION SHOWS THE RANGE OF STATED INTEREST RATES ON THE FUND'S
INVESTMENTS, EXCLUDING REPURCHASE AGREEMENTS.
AVERAGE YEARS TO MATURITY AS OF OCTOBER 31, 1995
6 MONTHS AGO

Years 9.6 9.3

AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY DOLLAR
AMOUNT.
DURATION AS OF OCTOBER 31, 1995
6 MONTHS AGO

Years 5.0 4.7

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
AS OF OCTOBER 31, 1995 AS OF APRIL 30, 1995
Mortgage-backed
securities 14.6%*
U.S. government and
government agency
obligations 76.3%
CMOs and other
mortgage related
securities 8.3%
Short-term
investments 0.8%
Mortgage-backed
securities 18.9%**
U.S. government and
government agency
obligations 64.3%
CMOs and other
mortgage related
securities 14.9%
Short-term
investments 1.9%
Row: 1, Col: 1, Value: 2.8
Row: 1, Col: 2, Value: 8.300000000000001
Row: 1, Col: 3, Value: 74.3
Row: 1, Col: 4, Value: 14.6
Row: 1, Col: 1, Value: 2.9
Row: 1, Col: 2, Value: 14.9
Row: 1, Col: 3, Value: 64.3
Row: 1, Col: 4, Value: 17.9
* GNMA SECURITIES 0.7%
** GNMA SECURITIES 1.1%
INVESTMENTS OCTOBER 31, 1995 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS - 76.3%
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
U.S. TREASURY OBLIGATIONS - 52.1%
8%, 10/15/96 $ 11,907,000 $ 12,165,620
4 3/8%, 11/15/96 4,340,000 4,287,095
7 1/4%, 11/15/96 860,000 873,975
8 1/2%, 5/15/97 11,949,000 12,449,305
9 1/4%, 8/15/98 3,580,000 3,902,200
5 1/8%, 12/31/98 1,965,000 1,931,226
7 3/4%, 12/31/99 5,600,000 5,996,368
11 7/8%, 11/15/03 3,595,000 4,922,885
11 3/4%, 2/15/10 4,080,000 5,694,782
12 3/4%, 11/15/10 7,290,000 10,857,507
9%, 11/15/18 23,470,000 30,653,932
8 7/8%, 2/15/19 15,000,000 19,382,850
8 1/8%, 8/15/19 2,205,000 2,654,269
12%, 8/15/23 7,200,000 10,801,152
126,573,166
U.S. GOVERNMENT AGENCY OBLIGATIONS - 24.2%
Federal Agricultural Mortgage Corp.
7.01%, 2/10/05 700,000 737,429
Federal Farm Credit Bank:
6.56%, 8/5/02 455,000 464,555
6.20%, 9/23/02 650,000 650,910
6.40%, 10/3/02 200,000 202,400
Federal Home Loan Bank:
4.78%, 2/10/97 (callable) 310,000 305,713
5.40%, 8/3/98 (callable) (a) 2,500,000 2,461,750
5.92%, 3/18/99 450,000 449,861
6.37%, 6/30/03 310,000 312,870
Federal National Mortgage Association:
6.52%, 9/15/97 11,000,000 11,143,946
3%, 7/13/98 (a) 450,000 456,258
0%, 11/30/99 606,000 474,195
7.40%, 7/1/04 230,000 245,939
Government Trust Certificates (assets of the Trust
guaranteed by U.S. Government through
Defense Security Assistance Agency):
Class 3-B, 8.55%, 11/15/97 532,184 541,801
Class 1-C, 9 1/4%, 11/15/01 2,983,000 3,281,837
Class 2-E, 9.40%, 5/15/02 190,000 209,897
Class T-2, 9 5/8%, 5/15/02 2,621,000 2,894,580
U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS - CONTINUED
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
U.S. GOVERNMENT AGENCY OBLIGATIONS - CONTINUED
Government Trust Certificates (assets of Trust
guaranteed by U.S. Government through
Export-Import Bank):
Series 1994-C, 6.610%, 9/15/99 $ 147,496 $ 149,253
Series 1995-A, 6.28%, 6/15/04 870,000 871,044
Series 1992-A, 7.02%, 9/1/04 801,000 825,629
Series 1994-F, 8.178%, 12/15/04 13,051,907 13,943,666
Private Export Funding Corp.:
secured notes, Series CC, 9 1/2%, 3/31/99 260,000 287,539
5 3/4%, 4/30/98 515,000 513,209
6.90%, 1/31/03 90,000 93,366
5.65%, 3/15/03 667,500 658,489
8 3/4%, 6/30/03 880,000 1,011,484
5.80%, 2/1/04 120,000 117,540
6.86%, 4/30/04 294,300 300,489
State of Israel (guaranteed by U.S. Government
through Agency for International Development):
5 1/4%, 3/15/98 410,000 405,002
4 7/8%, 9/15/98 1,060,000 1,033,500
5 3/4%, 3/15/00 690,000 682,672
8%, 11/15/01 6,190,000 6,753,909
6 1/4%, 8/15/02 2,170,000 2,185,722
6 1/8%, 3/15/03 1,200,000 1,193,256
8 1/2%, 4/1/06 1,590,000 1,784,282
Student Loan Marketing Association:
7.56%, 12/9/96 200,000 203,719
8.14%, 10/15/03 650,000 717,641
Twelve Federal Land Banks 7.95%, 10/21/96 290,000 295,800
58,861,152
TOTAL U.S. GOVERNMENT AND
GOVERNMENT AGENCY OBLIGATIONS
(Cost $176,665,028) 185,434,318
U.S. GOVERNMENT AGENCY - MORTGAGE-BACKED SECURITIES - 14.6%
FEDERAL HOME LOAN MORTGAGE CORPORATION - 10.6%
6 1/2%, 5/1/08 1,087,111 1,078,957
7 1/2%, 6/1/07 815,564 836,760
9%, 8/1/08 to 4/1/20 2,337,822 2,468,277
9 1/2%, 6/1/09 to 8/1/24 13,425,017 14,227,808
U.S. GOVERNMENT AGENCY - MORTGAGE-BACKED SECURITIES - CONTINUED
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
FEDERAL HOME LOAN MORTGAGE CORPORATION - CONTINUED
10%, 7/1/09 to 2/1/21 $ 3,782,815 $ 4,123,334
10 1/2%, 10/1/15 to 1/1/16 142,211 155,538
12%, 9/1/03 to 12/1/15 213,327 240,130
12 1/4%, 3/1/11 to 7/1/14 625,924 704,703
12 1/2%, 2/1/14 to 6/1/19 1,176,156 1,352,342
13%, 8/1/10 to 6/1/15 454,831 528,171
13 1/2%, 10/1/11 1,165 1,376
25,717,396
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 3.3%
6.345%, 3/1/99 1,797,815 1,807,366
6 1/2%, 2/1/10 to 1/1/24 1,290,757 1,289,118
7%, 11/1/06 518,544 525,820
8 1/4%, 12/1/01 1,986,523 2,125,580
11%, 8/1/10 993,517 1,105,496
11 1/4%, 5/1/14 416,369 463,922
12 1/2%, 3/1/16 139,607 161,813
13%, 9/1/13 92,793 108,654
13 1/2%, 5/1/11 to 1/1/15 266,591 314,756
7,902,525
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 0.7%
8 1/2%, 1/15/06 to 7/15/08 243,139 255,813
9 1/2%, 6/15/09 to 11/15/09 1,094,879 1,183,277
10%, 1/15/16 4,729 5,185
11%, 4/15/13 to 6/15/13 67,169 75,280
11 1/2%, 4/15/10 to 4/15/13 96,507 109,278
13 1/2%, 7/15/11 86,559 103,357
1,732,190
TOTAL U.S. GOVERNMENT AGENCY -
MORTGAGE-BACKED SECURITIES
(Cost $34,626,303) 35,352,111
COLLATERALIZED MORTGAGE OBLIGATIONS - 8.3%
PRIVATE SPONSOR - 0.2%
DLJ Acceptance Trust planned amortization class,
Series 1989, Class 1-F, 11%, 8/1/19 369,666 405,709
COLLATERALIZED MORTGAGE OBLIGATIONS - CONTINUED
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
U.S. GOVERNMENT AGENCY - 8.1%
Federal Home Loan Mortgage Corporation:
planned amortization class:
Series 1417-C, 5 3/8%, 6/15/01 $ 1,242,300 $ 1,233,371
Series 1485-C, 5%, 9/15/01 1,800,000 1,772,719
Series 1515-D, 6%, 9/15/05 4,000,000 3,940,000
sequential pay Series 1353, Class A, 5 1/2%, 11/15/04 177,959 174,789
Series 1993:
Class 72-B, 5%, 1/25/02 1,372,308 1,354,715
Class 135-PC, 5 1/2%, 7/25/02 1,970,000 1,940,450
Federal National Mortgage Association:
planned amortization class:
Series 1992, Class 193-D, 5 3/4%, 12/25/01 3,900,000 3,875,625
Series 1993-28, Class PD, 5 1/4%, 10/25/01 1,000,000 988,438
Series 1994-M3, Class A, 7.71%, 4/1/06 4,237,581 4,383,248
19,663,355
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $19,243,185) 20,069,064
REPURCHASE AGREEMENTS - 0.8%
MATURITY
AMOUNT

Investments in repurchase agreement,
(U.S. Treasury obligations) in a
joint trading account at 5.88%,
dated 10/31/95 due 11/1/95 $ 2,056,336 2,056,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $232,590,516) $ 242,911,493
LEGEND
5. Debt obligation initially issued at one coupon which converts to a
higher coupon at a specified date.
INCOME TAX INFORMATION
At October 31, 1995, the aggregate cost of investment securities for income
tax purposes was $232,702,524. Net unrealized appreciation aggregated
$10,208,969, of which $10,484,325 related to appreciated investment
securities and $275,356 related to depreciated investment securities.
At April 30, 1995, the fund had a capital loss carryforward of
approximately $13,235,000 all of which will expire on April 30, 2003.
The fund has elected to defer to its fiscal year ending April 30, 1996
approximately $5,412,000 of losses recognized during the period November 1,
1994 to April 30, 1995.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS OCTOBER 31, 1995 (UNAUDITED)

ASSETS

Investment in securities, at value (including repurchase $ 242,911,493
agreements of $2,056,000) (cost $232,590,516) -
See accompanying schedule

Cash 182,834

Receivable for investments sold 9,850,967

Interest receivable 4,906,998

TOTAL ASSETS 257,852,292

LIABILITIES

Payable for investments purchased $ 11,850,779

Distributions payable 208,262

Accrued management fee 132,272

TOTAL LIABILITIES 12,191,313

NET ASSETS $ 245,660,979

Net Assets consist of:

Paid in capital $ 252,691,679

Distributions in excess of net investment income (1,191,845)

Accumulated undistributed net realized gain (loss) (16,159,832)
on investments

Net unrealized appreciation (depreciation) on 10,320,977
investments

NET ASSETS, for 23,561,908 shares outstanding $ 245,660,979

NET ASSET VALUE, offering price and redemption price per $10.43
share ($245,660,979 (divided by) 23,561,908 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS ENDED OCTOBER 31, 1995 (UNAUDITED)

INVESTMENT INCOME $ 8,749,186
Interest

EXPENSES

Management fee $ 790,276

Non-interested trustees' compensation 545

TOTAL EXPENSES 790,821

NET INVESTMENT INCOME 7,958,365

REALIZED AND UNREALIZED GAIN (LOSS) 2,655,586
Net realized gain (loss) on investment securities

Change in net unrealized appreciation (depreciation) on 8,662,309
investment securities

NET GAIN (LOSS) 11,317,895

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 19,276,260
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED APRIL 30,
OCTOBER 31,1995 1995
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

Operations $ 7,958,365 $ 18,513,856
Net investment income

Net realized gain (loss) 2,655,586 (13,023,263)

Change in net unrealized appreciation (depreciation) 8,662,309 11,143,605

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 19,276,260 16,634,198
FROM OPERATIONS

Distributions to shareholders (7,834,954) (17,802,636)
From net investment income

In excess of net investment income - (1,156,874)

TOTAL DISTRIBUTIONS (7,834,954) (18,959,510)

Share transactions 19,280,881 36,150,573
Net proceeds from sales of shares

Reinvestment of distributions 6,550,945 15,816,845

Cost of shares redeemed (31,511,249) (96,396,776)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (5,679,423) (44,429,358)
FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS 5,761,883 (46,754,670)

NET ASSETS

Beginning of period 239,899,096 286,653,766

End of period (including distributions in excess $ 245,660,979 $ 239,899,096
of net investment income of $(1,191,845) and
$(1,315,256), respectively)

OTHER INFORMATION
Shares

Sold 1,873,447 3,685,770

Issued in reinvestment of distributions 636,074 1,612,595

Redeemed (3,068,310) (9,835,808)

Net increase (decrease) (558,789) (4,537,443)

</TABLE>

FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED APRIL 30,
ENDED
OCTOBER 31, 1995

(UNAUDITED) 1995 1994 E 1993 1992 1991

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE
DATA

Net asset value, $ 9.950 $ 10.000 $ 10.930 $ 10.900 $ 10.640 $ 10.030
beginning of period

Income from .334 .640 .624 .784 .846 .870
Investment
Operations
Net investment
income

Net realized and .476 .055 D (.720) .370 .294 .610
unrealized gain
(loss)

Total from investment .810 .695 (.096) 1.154 1.140 1.480
operations

Less Distributions (.330) (.700) (.574) (.704) (.840) (.870)
From net investment
income

In excess of net - (.045) - - - -
investment income

From net realized gain - - (.100) (.420) (.040) -

In excess of net - - (.160) - - -
realized gain

Total distributions (.330) (.745) (.834) (1.124) (.880) (.870)

Net asset value, end $ 10.430 $ 9.950 $ 10.000 $ 10.930 $ 10.900 $ 10.640
of period

TOTAL RETURN B, C 8.23% 7.32% (1.14) 11.12% 11.05% 15.27%
%

RATIOS AND
SUPPLEMENTAL DATA

Net assets, end of $ 245,661 $ 239,899 $ 286,654 $ 457,725 $ 482,837 $ 430,443
period (000 omitted)

Ratio of expenses to .65% .65% .65% .65% .65% .53%
average net assets A F

Ratio of net investment 6.51% 7.34% 6.79% 7.11% 7.77% 8.35%
income to average A
net assets

Portfolio turnover rate 138% 303% 354% 170% 59% 96%
A

</TABLE>

A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D THE AMOUNT SHOWN FOR A SHARE OUTSTANDING DOES NOT CORRESPOND WITH THE
AGGREGATE NET LOSS ON INVESTMENTS FOR THE PERIOD ENDED DUE TO THE TIMING OF
SALES AND REPURCHASES OF FUND SHARES IN RELATION TO FLUCTUATING MARKET
VALUES OF THE INVESTMENTS OF THE FUND.
E EFFECTIVE MAY 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION 93-2,
"DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF INCOME,
CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES."
AS A RESULT, NET INVESTMENT INCOME PER SHARE MAY REFLECT CERTAIN
RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
F FMR VOLUNTARILY AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES
DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
NOTES TO FINANCIAL STATEMENTS
For the period ended October 31, 1995 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Spartan Government Income Fund (the fund) is a fund of Fidelity
Fixed-Income Trust (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 following
summarizes the significant accounting policies of the fund:
SECURITY VALUATION. Securities are valued based upon a computerized matrix
system and/or appraisals by a pricing service, both of which consider
market transactions and dealer-supplied valuations. Short-term securities
maturing within sixty days of their purchase date are valued either at
amortized cost or original cost plus accrued interest, both of which
approximate current value. Securities for which market quotations are not
readily available are valued at their fair value as determined in good
faith under consistently applied procedures under the general supervision
of the Board of Trustees.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes substantially all of its taxable income for
its fiscal year. The schedule of investments includes information regarding
income taxes under the caption "Income Tax Information."
INVESTMENT INCOME. Interest income, which includes accretion of original
issue discount, is accrued as earned.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are declared daily and paid
monthly from net investment income. Distributions from realized gains, if
any, are recorded on the ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences, which may result in distribution
reclassifications, are primarily due to differing treatments for paydown
gains/losses on certain securities, futures and options transactions,
market discount and losses deferred due to wash sales and excise tax
regulations.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect the per-share allocation between net investment income and realized
and unrealized gain (loss). Distributions in excess of net investment
income and accumulated undistributed net realized gain (loss) on
investments may include temporary book and tax basis differences that will
reverse in a subsequent period. Any taxable income or gain remaining at
fiscal year end is distributed in the following year.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other affiliated
entities of Fidelity Management & Research Company (FMR), may transfer
uninvested cash balances into one or more joint trading accounts. These
balances are invested in one or more repurchase agreements that mature in
60 days or less from the date of purchase, and are collateralized by U.S.
Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying U.S. Treasury or Federal Agency Securities, the market
value of which is required to be at least equal to the repurchase price.
For term repurchase agreement transactions, the underlying securities are
marked-to-market daily and maintained at a value at least equal to the
repurchase price. FMR, the fund's investment adviser, is responsible for
determining that the value of the underlying securities remains in
accordance with the market value requirements stated above.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of long-term U.S. government and government agency
obligations aggregated $165,316,313 and $167,039,628, respectively.
4. FEES AND OTHER
TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR pays all expenses,
except the compensation of the non-interested Trustees and certain
exceptions such as interest, taxes, brokerage commissions and extraordinary
expenses. FMR receives a fee that is computed daily at an annual rate of
.65% of the fund's average net assets.
FMR also bears the cost of providing shareholder services to the fund. To
offset the cost of providing these services, FMR or its affiliates collect
certain transaction fees from the fund's shareholders which amounted to
$2,517 for the period.
5. PROPOSED REORGANIZATION.
The Board of Trustees of the Fidelity Fixed-Income Trust has approved an
Agreement and Plan of Reorganization and Liquidation ("Agreement") between
the fund and Spartan Long-Term Government Bond Fund ("Reorganization"). The
Agreement provides for the transfer of substantially all of the assets and
the assumption of substantially all of the liabilities of Spartan Long-Term
Government Bond Fund in exchange solely for
5. PROPOSED REORGANIZATION - CONTINUED
the number of shares of the fund having the same aggregate net asset value
as the outstanding shares of Spartan Long-Term Government Bond Fund at the
close of business on the day the Reorganization is effective. The
Reorganization can be consummated only if, among other things, it is
approved by the vote of a majority (as defined by the Investment Company
Act of 1940) of outstanding voting securities of Spartan Long-Term
Government Bond Fund. A Special Meeting of Shareholders (Meeting) of
Spartan Long-Term Government Bond Fund will be held on May 7, 1996 to
approve the Agreement. If the Agreement is approved at the Meeting, the
Reorganization is expected to become effective on or about May 31, 1996.
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INVESTMENT ADVISER
Fidelity Management & Research
Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Fred L. Henning, Jr., Vice President
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
CUSTODIAN
The Bank of New York
New York, NY
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(2_FIDELITY_LOGOS)SPARTAN

HIGH INCOME
FUND
SEMIANNUAL REPORT
OCTOBER 31, 1995
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

FUND TALK 7 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 10 A summary of major shifts in the
fund's investments over the past six
months.

INVESTMENTS 11 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 23 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 27 Notes to the financial statements.

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. A fund's total
return includes changes in a fund's share price, reinvestment of any
dividends (or income) and capital gains (the profits the fund earns when it
sells securities that have grown in value), and the effect of the $5
account closeout fee. You can also look at the fund's income as part of its
performance.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1995 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

Spartan High Income 9.08% 18.91% 150.26% 139.01%

Merrill Lynch High Yield Master Index 7.71% 17.17% 120.20% n/a

Average High Yield Fund 6.68% 12.73% 113.47% n/a

Consumer Price Index 1.18% 2.81% 15.13% 16.79%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, five years, or
since the fund started on August 29, 1990. For example, if you invested
$1,000 in a fund that had a 5% return over the past year, the value of your
investment would be $1,050. You can compare the fund's returns to the
performance of the Merrill Lynch High Yield Master Index - a broad measure
of the high yield bond market. To measure how the fund's performance
stacked up against its peers, you can compare it to the average high
current yield fund, which reflects the performance of 128 funds with
similar objectives tracked by Lipper Analytical Services over the past six
months. These benchmarks include reinvested dividends and capital gains, if
any. Comparing the fund's performance to the consumer price index (CPI)
helps show how your fund did compared to inflation. (The CPI returns begin
on the month end closest to the fund's start date.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Spartan High Income 18.91% 20.14% 18.33%

Merrill Lynch High Yield Master Index 17.17% 17.10% n/a

Average High Yield Fund 12.73% 16.27% n/a

Consumer Price Index 2.81% 2.86% 3.05%

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
Spartan HighHigh Yiel
08/31/90 10000.00 10000
09/30/90 9666.58 9565.084
10/31/90 9488.97 9321.678
11/30/90 9712.91 9400.644
12/31/90 9879.66 9536.101
01/31/91 10039.05 9670.901
02/28/91 10651.21 10388.71
03/31/91 11174.31 10835.38
04/30/91 11458.94 11221.24
05/31/91 11606.17 11276.04
06/30/91 11899.82 11502.87
07/31/91 12288.58 11778.49
08/31/91 12387.51 12026.05
09/30/91 12558.14 12179.23
10/31/91 13022.92 12541.14
11/30/91 13174.27 12686
12/31/91 13272.68 12833.38
01/31/92 13875.85 13282.07
02/29/92 14386.70 13611.94
03/31/92 14757.53 13801.86
04/30/92 14868.95 13902.32
05/31/92 15045.74 14124.07
06/30/92 15268.47 14299.56
07/31/92 15561.57 14589.28
08/31/92 15833.92 14782.43
09/30/92 16003.59 14950.86
10/31/92 15772.92 14762.03
11/30/92 15906.17 14971.1
12/31/92 16126.54 15163.87
01/31/93 16524.63 15537.26
02/28/93 16871.13 15831.36
03/31/93 17288.91 16105.83
04/30/93 17390.25 16221.43
05/31/93 17600.87 16439.79
06/30/93 18208.29 16748.66
07/31/93 18446.41 16928.68
08/31/93 18600.88 17090.06
09/30/93 18663.19 17174.39
10/31/93 19072.20 17497.91
11/30/93 19362.11 17593.61
12/31/93 19652.45 17769.53
01/31/94 20316.99 18158.95
02/28/94 20313.43 18028.36
03/31/94 19820.47 17440.87
04/30/94 19599.30 17237.06
05/31/94 19680.14 17175.65
06/30/94 19676.56 17238.86
07/31/94 19699.51 17360.05
08/31/94 19701.72 17480.63
09/30/94 19858.45 17474.01
10/31/94 19970.36 17518.42
11/30/94 19906.84 17369.4
12/31/94 20282.62 17562.6
01/31/95 20422.40 17810.77
02/28/95 20905.97 18366.48
03/31/95 21226.83 18622.08
04/30/95 21769.89 19058.09
05/31/95 22190.66 19653.51
06/30/95 22480.32 19803.62
07/31/95 22913.07 20030.02
08/31/95 23197.50 20151.59
09/30/95 23402.80 20382.14
10/31/95 23748.30 20526.62

$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Spartan High
Income Fund on August 31, 1990, shortly after the fund started. As the
chart shows, by October 31, 1995, the value of your investment would have
grown to $23,748 - a 137.48% increase on your initial investment. This
assumes you still own the fund on October 31, 1995, and therefore does not
include the effect of the $5 account closeout fee. For comparison, look at
how the Merrill Lynch High Yield Master Index did over the same period.
With dividends reinvested, the same $10,000 investment would have grown to
$20,527 - a 105.27% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, generally move in
the opposite direction of
interest rates. In turn, the
share price, return, and yield
of a fund that invests in
bonds will vary. That means if
you sell your shares during a
market downturn, you might
lose money. But if you can
ride out the market's ups and
downs, you may have a gain.
(checkmark)
TOTAL RETURN COMPONENTS
YEARS ENDED APRIL 30, AUGUST 29, 1990
SIX (COMMENCEMENT
MONTHS OF
ENDED OPERATIONS)
OCTOBER TO APRIL 30,
31,

1995 1995 1994 1993 1992 1991

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Dividend return 5.49% 9.46% 8.94% 10.88% 14.44% 8.93%

Capital appreciation 3.59% 1.61% 3.75% 6.07% 15.30% 6.39%

return

Total return 9.08% 11.07% 12.69% 16.95% 29.74% 15.32%

</TABLE>

DIVIDEND returns and capital appreciation returns are both part of a bond
fund's total return. A dividend return reflects the actual dividends paid
by the fund. A capital appreciation return reflects both the amount paid by
the fund to shareholders as capital gain distributions and changes in the
fund's share price based on the gains it has from selling securities that
have grown in value, and changes in the value of the securities the fund
still holds. Both returns assume the dividends or gains are reinvested.
Capital appreciation and total returns include the effect of the $5 account
closeout fee.
DIVIDENDS AND YIELD
PERIODS ENDED OCTOBER 31, 1995 PAST PAST 6 PAST
MONTH MONTHS YEAR

Dividends per share 8.08(cents) 63.05(cents) 111.87(cents)

Annualized dividend rate 7.73% 10.28% 9.42%

30-day annualized yield 8.61% - -

DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on an average share price of $12.31 over
the past month, $12.17 over the past six months, $11.87 over the past year,
you can compare the fund's income over these three periods. The 30-day
annualized YIELD is a standard formula for all bond funds based on the
yields of the bonds in the fund, averaged over the past 30 days. This
figure shows you the yield characteristics of the fund's investments at the
end of the period. It also helps you compare funds from different companies
on an equal basis.
FUND TALK: THE MANAGER'S OVERVIEW

An interview with David Glancy, Portfolio Manager of Spartan High Income
Fund
Q. DAVID, HOW HAS THE FUND
PERFORMED?
A. For the six- and 12-month periods ending October 31, 1995, the fund had
total returns of 9.08% and 18.91%, respectively. For the same six- and
12-month periods, the average high-yield fund returned 6.68% and 12.73%
respectively, as tracked by Lipper Analytical Services. The Merrill Lynch
High Yield Master Index returned 7.71% for the six-month period and 17.17%
for the 12-month period.
Q. OVER THE PAST 12 MONTHS, HIGH-YIELD BONDS WERE AMONG THE BEST-PERFORMING
FIXED INCOME INVESTMENTS. WHAT'S BEHIND THAT STRENGTH?
A. A number of factors. The significant decline in interest rates we've
seen during that period has helped all bonds, including the high-yield
variety. Next, a steadily growing economy and strong earnings reports
appeared to fuel investors beliefs that the overall credit quality of the
high-yield market was improving. Finally, demand for high- yield bonds has
been quite strong as yield-hungry investors looked to the high-yield sector
for additional income.
Q. WHAT HELPED THE FUND PERFORM SO WELL OVER THE PAST SIX MONTHS?
A. It came down to individual bond selection. On the positive side, some of
the fund's largest holdings were also among its biggest gainers during the
past six months. Part of my strategy is to take concentrated positions in
situations that Fidelity's in-house research identifies as having the
strongest income or capital appreciation potential.
Q. WHICH HOLDINGS IN PARTICULAR DID WELL DURING THE PERIOD?
A. Echostar Communications Corp., a satellite programmer and the fund's
largest investment at 6.5% of its assets as of October 31, 1995, performed
quite well. The company is one of only three that own the rights to an
orbital slot - or location in the sky - from which to broadcast. The price
of Echostar bonds rose when the value of that orbital slot was confirmed.
Another example of a strong performer is Relvon, which has made tremendous
progress since 1991. A number of successful product launches helped to
improve the company's operating results and achieve the No. 2 position in
the $2.3 billion U.S. cosmetics industry.
Q. WERE THERE ANY HOLDINGS THAT DIDN'T DO AS WELL AS YOU HAD HOPED?
A. Sure. Harrah's Jazz, which was building the only land-based casino in
New Orleans and made up 3.8% of the fund's investments at the end of the
period, performed terribly. The value of these bonds suffered as revenues
generated from its temporary casino location proved to be lower than
expected. After the period ended, Harrah's Jazz filed for bankruptcy
protection basing its claim upon its bank's unwillingness to fund the
balance of the construction costs for a permanent facility. While it's
clear that this investment was a major disappointment, it also serves to
demonstrate the risks inherent with high-yield bonds. There is a reasonably
good chance that a permanent casino will be built. If the project
ultimately succeeds, the returns to bond holders could be very attractive.
Q. WHAT'S THE ATTRACTION TO AMERICAN FINANCIAL GROUP?
A. American Financial Group's (AFG) debt and equity are both large
positions for the fund and are currently very cheap. The BB-rated debt
trades at 370 basis points (one one-hundredth of a percentage point) higher
than comparable Treasury bonds. Normally that difference, or spread, would
be about 250 basis points. What's more, AFG could be investment grade by
1997. The stock yields 3.5%, trades at nine times 1996 estimated earnings
per share.
Q. THE FUND'S HOLDINGS IN SHORT-TERM INVESTMENTS DROPPED TO 18.1% AT THE
END OF THE PERIOD, FROM 30.8% SIX MONTHS EARLIER. WHY?
A. Part of the reason for the fund's high stake in short-term investments
six months ago - including cash - was because, at the time, a few of the
fund's holdings had appreciated to the point where I thought they were at
full value. I sold some of those positions and kept cash on hand for a
time. That was because the supply of high-yielding issues was quite low and
demand was strong. At that time, I wasn't able to find a lot of bonds that
I felt were attractive and which I thought would potentially compensate the
investor for the risk they carried.
Q. WHERE DID YOU PUT SOME OF THAT CASH TO WORK?
A. Recently, I put part of the cash to work in situations I thought were
undervalued. I added bonds issued by the retailer Parisian. These
securities had been depressed due to a weak retail environment and an
overly aggressive expansion strategy. At the time I bought them, the
company was grouped by many investors into the depressed retail sector.
However, intensive internal research revealed a strong management team,
attractive asset valuations and realistic projections of operational
improvements. In my view, those factors make it a compelling investment.
Q. WHAT'S AHEAD FOR THE FUND?
A. I'll continue to invest a portion of the fund in bonds that I feel have
the potential to post solid total returns and to offset some of the risk of
those positions by maintaining a relatively high cash weighting. I don't
think it's wise to take on too much interest rate risk. Also, I'll probably
maintain relatively large cash balances to be used to buy attractive bonds
if they become more attractively priced. As always, I'll concentrate on
finding attractive opportunities and attempting to avoid credit mistakes.
Q. SO WHAT WILL BE YOUR STRATEGY?
A. I've positioned the fund to try to minimize its exposure to interest
rate risk. That strategy entails focusing on situations with discernible
business risk and the potential for appreciation, versus relying on
additional interest rate improvement.

TOP FIVE HOLDINGS AS OF OCTOBER 31, 1995
(BY ISSUER, EXCLUDING REPURCHASE % OF FUND'S % OF FUND'S
AGREEMENTS) INVESTMENTS INVESTMENTS
IN THESE HOLDINGS
6 MONTHS AGO

Echostar Communications Corp 6.5 3.1

Harrah's Jazz Co. 3.8 4.8

American Financial Group 3.8 0.0

Carter Hawley Hale Stores, Inc. 2.7 0.0

Robin Media Group, Inc. 2.6 2.3

TOP FIVE MARKET SECTORS AS OF OCTOBER 31, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE MARKET SECTORS
6 MONTHS AGO

Media & Leisure 30.0 23.5

Finance 11.5 15.8

Retail & Wholesale 9.6 4.2

Technology 7.2 3.8

Nondurables 6.5 5.6

QUALITY DIVERSIFICATION AS OF OCTOBER 31, 1995
(MOODY'S RATINGS) % OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Aaa, Aa, A 0.0 0.0

Baa 0.0 0.0

Ba 12.0 4.4

B 25.4 17.6

Caa, Ca, C 16.3 11.5

Nonrated 14.5 18.7

UNRATED DEBT SECURITIES THAT ARE EQUIVALENT TO BA AND BELOW AT OCTOBER 31,
1995 AND APRIL 30, 1995 ACCOUNT FOR 13.6% AND 18.7% OF THE FUND'S
INVESTMENTS, RESPECTIVELY.
ASSET ALLOCATION
AS OF OCTOBER 31, 1995* AS OF APRIL 30, 1995**
Row: 1, Col: 1, Value: 1.2
Row: 1, Col: 2, Value: 18.1
Row: 1, Col: 3, Value: 9.6
Row: 1, Col: 4, Value: 7.2
Row: 1, Col: 5, Value: 63.9
Row: 1, Col: 1, Value: 2.0
Row: 1, Col: 2, Value: 30.6
Row: 1, Col: 3, Value: 11.4
Row: 1, Col: 4, Value: 4.9
Row: 1, Col: 5, Value: 51.1
Nonconvertible
bonds 63.9%
Convertible bonds,
preferred stock 7.2%
Common stock 9.9%
Short-term
investments 18.1%
Other 0.9%
FOREIGN
INVESTMENTS 1.5%
Nonconvertible
bonds 51.1%
Convertible bonds,
preferred stock 4.9%
Common stock 11.4%
Short-term
investments 30.8%
Other 1.8%
FOREIGN
INVESTMENTS 1.6%
*
**
INVESTMENTS OCTOBER 31, 1995 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

CORPORATE BONDS - 66.9%
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
CONVERTIBLE BONDS - 3.0%
INDUSTRIAL MACHINERY & EQUIPMENT - 0.1%
ELECTRICAL EQUIPMENT - 0.1%
Ampex Corp., Series C, 0%, 6/30/97 - $ 805 $ 784
MEDIA & LEISURE - 0.2%
LODGING & GAMING - 0.2%
Bally Entertainment Corp. 10%, 12/15/06 Caa 2,556 2,492
RETAIL & WHOLESALE - 2.7%
GENERAL MERCHANDISE STORES - 2.7%
Carter Hawley Hale Stores, Inc. 6 1/4%,
12/31/00 Caa 27,910 27,770
TOTAL CONVERTIBLE BONDS 31,046
NONCONVERTIBLE BONDS - 63.9%
AEROSPACE & DEFENSE - 0.4%
Rohr, Inc. 11 5/8%, 5/15/03 Ba3 3,920 4,194
BASIC INDUSTRIES - 3.0%
CHEMICALS & PLASTICS - 1.2%
American Pacific Corp. 11%, 2/21/02 (g) - 2,300 2,070
G-I Holdings, Inc., Series B, 0%, 10/1/98 Ba3 14,000 10,430
12,500
IRON & STEEL - 0.5%
Republic Engineered Steels, Inc.
9 7/8%, 12/15/01 B2 5,230 4,812
METALS & MINING - 1.1%
Jorgensen Earle M Co. 10 3/4%, 3/1/00 B2 11,750 11,309
PAPER & FOREST PRODUCTS - 0.2%
Stone Container Corp.:
10 3/4%, 10/1/02 B1 1,740 1,820
11 1/2%, 10/1/04 B1 370 385
2,205
TOTAL BASIC INDUSTRIES 30,826
CORPORATE BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
CONGLOMERATES - 1.3%
Penn Central Corp. 9 3/4%, 8/1/99 Ba3 $ 13,150 $ 13,347
CONSTRUCTION & REAL ESTATE - 1.2%
CONSTRUCTION - 0.8%
WCI Communities LP 17%, 7/24/98 (f) - 8,000 7,900
REAL ESTATE - 0.4%
Littlefield Co. Series B, 10%, 12/31/95 (f) - 4,070 3,688
TOTAL CONSTRUCTION & REAL ESTATE 11,588
DURABLES - 1.0%
TEXTILES & APPAREL - 1.0%
Hat Brands, Inc. (a):
Series B, 12 5/8%, 9/15/02 - 3,470 3,644
Series D, 12 5/8%, 9/15/02 - 3,000 3,150
Salant Corp. 10 1/2%, 12/31/98 Caa 3,680 3,238
10,032
ENERGY - 3.7%
ENERGY SERVICES - 0.5%
Falcon Drilling, Inc. 12 1/2%, 3/15/05 B3 5,000 5,350
OIL & GAS - 3.2%
Mesa Capital Corp. secured 12 3/4%,
6/30/98 (d) Caa 29,330 26,397
United Meridian Corp. 10 3/8%, 10/15/05 B2 6,380 6,492
32,889
TOTAL ENERGY 38,239
FINANCE - 7.6%
CREDIT & OTHER FINANCE - 0.1%
Tembec Finance Corp. yankee
9 7/8%, 9/30/05 B1 630 614
INSURANCE - 5.2%
American Annuity Group, Inc.
11 1/8%, 2/1/03 Ba3 6,850 7,364
CORPORATE BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
FINANCE - CONTINUED
INSURANCE - CONTINUED
American Financial Corp.:
10%, 10/20/99 Ba3 $ 449 $ 452
9 3/4%, 4/20/04 Ba3 27,760 27,968
Series B, 9 3/4%, 4/20/04 Ba3 4,000 4,030
CCP Insurance, Inc. 10 1/2%, 12/15/04 Ba2 12,640 13,335
53,149
SAVINGS & LOANS - 2.2%
Berkeley Federal Bank & Trust FSB
12%, 6/15/05 B1 5,000 5,100
First Nationwide Holdings, Inc.
12 1/4%, 5/15/01 Ba3 15,830 17,651
22,751
SECURITIES INDUSTRY - 0.1%
ECM Corp. extendible 14%, 6/1/02 (g) - 1,026 1,129
TOTAL FINANCE 77,643
MEDIA & LEISURE - 24.8%
BROADCASTING - 9.3%
Citicasters, Inc. 9 3/4%, 2/15/04 (a) B- 8,625 8,668
NWCG Holdings Corp. 0%, 6/15/99 Caa 14,000 9,415
PTI Holdings, Inc. 7%, 12/17/02 - 3,121 1,904
Robin Media Group, Inc. 11 1/8%, 4/1/97 - 26,260 26,982
SCI Television, Inc. secured 11%, 6/30/05 B2 23,591 24,977
Telemundo Group, Inc. 10 1/4%, 12/30/01 - 13,999 13,579
Univision Network Holding LP 7%, 12/17/02 - 15,642 9,464
94,989
ENTERTAINMENT - 0.4%
Plitt Theatres, Inc. 10 7/8%, 6/15/04 B3 4,410 4,057
LEISURE DURABLES & TOYS - 1.1%
Compact Video, Inc. 12 3/4%, 7/1/96 - 11,250 11,250
LODGING & GAMING - 14.0%
Bally's Casino Holdings, Inc.
10 1/2%, 6/15/98 B2 8,930 6,921
Bally Gaming International, Inc.
10 3/8%, 7/15/98 - 7,500 7,725
GNF Corp., Series B, 10 5/8%, 4/1/03 B2 10,820 9,467
CORPORATE BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
MEDIA & LEISURE - CONTINUED
LODGING & GAMING - CONTINUED
Grand Casino Resorts, Inc. gtd.
12 1/2%, 2/1/00 Ba3 $ 20,740 $ 23,229
Griffin Gaming & Entertainment, Inc.
secured 8.21%, 6/30/00 (h) B3 8,543 7,542
HMH Properties, Inc. 9 1/2%,
5/15/05 (g) B1 4,000 4,020
Harrah's Jazz Co. 14 1/4%, 11/15/01 (b) B1 44,520 38,955
Horseshoe Gaming LLC 12 3/4%,
9/30/00 (g) - 5,000 4,963
Maritime Group Ltd. pay-in-kind
14%, 2/15/97 (b)(h) - 2,390 454
Showboat, Inc. 13%, 8/1/09 B2 5,000 5,500
Stratosphere Corp. 14 1/4%, 5/15/02 B2 5,980 6,384
Trump Hotels & Casino Resorts Holdings
LP/Trump Hotels & Casino Resorts Funding, Inc.
secured 15 1/2%, 6/15/05 B3 16,290 16,086
Trump Plaza Funding, Inc. gtd. mtg.
10 7/8%, 6/15/01 B3 11,930 11,214
142,460
TOTAL MEDIA & LEISURE 252,756
NONDURABLES - 5.4%
HOUSEHOLD PRODUCTS - 5.4%
McAndrews & Forbes Group, Inc.
12 1/4%, 7/1/96 - 16,265 16,347
Revlon Consumer Products Corp.
10 1/2%, 2/15/03 B3 14,880 15,289
Revlon Worldwide Corp.
secured 0%, 3/15/98 B3 32,074 23,895
55,531
RETAIL & WHOLESALE - 6.0%
APPAREL STORES - 0.3%
AnnTaylor, Inc. 8 3/4%, 6/15/00 B1 2,250 1,845
Lamonts Apparel Inc. 10 1/4%, 11/1/99 (b)(g) - 3,081 770
2,615
GENERAL MERCHANDISE STORES - 2.3%
Parisian, Inc. 9 7/8%, 7/15/03 Caa 27,945 23,753
CORPORATE BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
RETAIL & WHOLESALE - CONTINUED
GROCERY STORES - 3.4%
Di Giorgio Corp. 12%, 2/15/03 B2 $ 1,595 $ 1,244
Pathmark Stores, Inc.:
9 5/8%, 5/1/03 B2 9,000 8,888
0%, 11/1/03 (d) B3 4,620 2,980
Purity Supreme, Inc. 11 3/4%, 8/1/99 B3 20,135 22,023
35,135
TOTAL RETAIL & WHOLESALE 61,503
SERVICES - 0.4%
LEASING & RENTAL - 0.2%
Scotsman Holdings, Inc. pay-in-kind
11%, 3/1/04 - 2,575 2,167
SERVICES - 0.2%
Borg Warner Security Corp.
9 1/8%, 5/1/03 Caa 2,170 1,877
TOTAL SERVICES 4,044
TECHNOLOGY - 6.5%
COMMUNICATIONS EQUIPMENT - 6.5%
Echostar Communications Corp. Unit 0%,
6/1/04 (d) Caa 103,918 66,508
TRANSPORTATION - 1.8%
AIR TRANSPORTATION - 1.8%
Continental Airlines, Inc. 2nd priority secured
equipment certificate 11%, 3/15/00 (b) Caa 480 -
Continental Airlines Corp. 10.22%, 7/1/00 (f) - 10,060 9,054
US Air, Inc.:
9 5/8%, 2/1/01 B3 4,710 4,192
10%, 7/1/03 B3 6,000 5,295
18,541
CORPORATE BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
UTILITIES - 0.8%
ELECTRIC UTILITY - 0.8%
Del Norte Funding Corp. (b):
lease obligation, 9.95%, 1/2/98 Ca $ 3,150 $ 2,000
9.05%, 1/2/93 Ca 511 324
secured lease obligation, 11 1/4%, 1/2/14 Ca 1,895 1,203
El Paso Funding Corp. lease obligation (b):
9 3/8%, 10/1/96 Ca 720 455
9.20%, 7/2/97 Ca 1,490 946
10 3/8%, 1/2/11 Ca 470 297
8.10%, 7/2/11 D 764 439
10 3/4%, 4/1/13 Ca 3,500 2,214
7,878
TOTAL NONCONVERTIBLE BONDS 652,630
TOTAL CORPORATE BONDS
(Cost $662,617) 683,676
COMMON STOCKS - 9.9%
SHARES

BASIC INDUSTRIES - 0.4%
CHEMICALS & PLASTICS - 0.4%
Atlantis Group, Inc. (Trivest/Winston) (a)(f) 39,687 258
Trivest 1992 Special Fund LP 13.6(e) 3,343
3,601
PACKAGING & CONTAINERS - 0.0%
Crown Packaging Holdings Ltd.
(warrants) (a) 4,576 87
TOTAL BASIC INDUSTRIES 3,688
DURABLES - 0.4%
AUTOS, TIRES, & ACCESSORIES - 0.2%
Freuhauf Trailer Corp. (warrants) (a)(f) 1,125,000 2,250
HOME FURNISHINGS - 0.0%
Polyvision Corp. (a) 11,329 28
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE1)
(000S)
DURABLES - CONTINUED
TEXTILES & APPAREL - 0.2%
Hat Brands, Inc. (warrants) (a)(f) 29,995 $ 330
HM/Hat Brands Trust unit Class I (a)(e)(f) 1,500,000 1,500
1,830
TOTAL DURABLES 4,108
FINANCE - 3.8%
INSURANCE - 3.8%
American Financial Group, Inc. 1,374,800 38,494
SECURITIES INDUSTRY - 0.0%
ECM Corp. LP (a)(g) 5,400 540
TOTAL FINANCE 39,034
HOLDING COMPANIES - 0.5%
SDW Holdings Corp. Unit (a)(g) 15,189 4,557
INDUSTRIAL MACHINERY & EQUIPMENT - 0.0%
ELECTRICAL EQUIPMENT - 0.0%
Ampex Corp. Class A (warrants) (a) 98,726 308
INDUSTRIAL MACHINERY & EQUIPMENT - 0.0%
Terex Corp. (rights) (a)(f) 13,020 2
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 310
MEDIA & LEISURE - 4.1%
BROADCASTING - 0.6%
Citicasters, Inc. 145,000 4,477
Chancellor Trust unit Class I (a)(f) 74 1,495
5,972
LODGING & GAMING - 3.5%
Bally Gaming International, Inc. (warrants) (a) 225,000 1,547
Harrah's Entertainment, Inc. 30,000 742
Horseshoe Gaming LLC (warrants) (a) 2,500,000 500
Maritime Group Ltd. (warrants) (a) 25,920 -
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE1)
(000S)
MEDIA & LEISURE - CONTINUED
LODGING & GAMING - CONTINUED
Showboat, Inc. 751,650 $ 18,040
Sun International Hotels Ltd. (a) 74,146 2,224
Sun Internaitonal Hotels Ltd. Class B (a) 15,570 479
WMS Industries, Inc. (a) 626,600 12,297
35,829
TOTAL MEDIA & LEISURE 41,801
NONDURABLES - 0.0%
BEVERAGES - 0.0%
Heileman G Brewing Inc. unit Class 1 (a)(f) 150 150
RETAIL & WHOLESALE - 0.0%
APPAREL STORES - 0.0%
Lamonts Apparel Inc. (a) 562,103 18
Lamonts Apparel Inc. (warrants) (a) 92,674 -
18
GROCERY STORES - 0.0%
FF Holdings Corp. (a)(f) 455 1
Grand Union Capital Corp. Class B (a) 2,009 -
Purity Supreme, Inc. (warrants) (a)(f) 19,870 -
1
TOTAL RETAIL & WHOLESALE 19
SERVICES - 0.0%
LEASING & RENTAL - 0.0%
Scotsman Holdings, Inc. (a) 17,917 234
TECHNOLOGY - 0.7%
COMMUNICATIONS EQUIPMENT - 0.0%
Echostar Communications Corp. Class A 5,000 72
ELECTRONICS - 0.7%
Berg Electronics Holdings Corp. (a)(g) 1,175,620 7,054
TOTAL TECHNOLOGY 7,126
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE1)
(000S)
TRANSPORTATION - 0.0%
AIR TRANSPORTATION - 0.0%
CHC Helicopter Corp. (warrants) (a) 30,960 $ -
UTILITIES - 0.0%
GAS - 0.0%
UGI Corp. (warrants) (a) 37,100 6
TOTAL COMMON STOCKS
(Cost $85,943) 101,033
PREFERRED STOCKS - 4.2%
CONVERTIBLE PREFERRED STOCKS - 0.9%
RETAIL & WHOLESALE - 0.9%
GROCERY STORES - 0.9%
Supermarkets General Holdings Corp.
exchangeable pay-in-kind $3.52 (a) 319,208 9,097
TECHNOLOGY - 0.0%
ELECTRONICS - 0.0%
Alpine Group, Inc. 8% cumulative 6,037 272
TOTAL CONVERTIBLE PREFERRED STOCKS 9,369
NONCONVERTIBLE PREFERRED STOCKS - 3.3%
ENERGY - 1.1%
OIL & GAS - 1.1%
Gulf Canada Resources Ltd. (f) 53,931 148
Gulf Canada Resources Ltd., Series 1
adj. rate 4,071,900 11,509
11,657
INDUSTRIAL MACHINERY & EQUIPMENT - 0.2%
ELECTRICAL EQUIPMENT - 0.2%
Ampex Corp. 8% (a)(f) 2,723 1,683
PREFERRED STOCKS - CONTINUED
SHARES VALUE (NOTE1)
(000S)
MEDIA & LEISURE - 0.9%
BROADCASTING - 0.9%
Cablevision System Corp., Series G exchangeable
pay-in-kind (a)(g) 87,000 $ 8,983
NONDURABLES - 1.1%
HOUSEHOLD PRODUCTS - 1.1%
Revlon Group, Inc., Series B,
exchangeable $14.875 113,039 11,643
TOTAL NONCONVERTIBLE PREFERRED STOCKS 33,966
TOTAL PREFERRED STOCKS
(Cost $39,836) 43,335
PURCHASED BANK DEBT - 0.9%($1,000 Sr. secured disc. notes & 6 warrants)
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
El Paso Electric Co.:
secured (i) $ 2,890 $ 2,948
secured loan RGRT Facility (b) 2,640 2,693
unsecured (b) 5,000 3,100
TOTAL PURCHASED BANK DEBT
(Cost $7,409) 8,741
REPURCHASE AGREEMENTS - 18.1%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a
joint trading account at 5.88%,
dated 10/31/95 due 11/1/95 $ 184,484 184,454
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $980,259) $ 1,021,239
LEGEND
1. Non-income producing
2. Non-income producing - issuer filed for protection under the Federal
Bankruptcy Code or is in default of interest payment.
3. Standard & Poor's credit ratings are used in the absence of a rating by
Moody's Investors Service, Inc.
4. Debt obligation initially issued in zero coupon form which converts to
coupon form at a specified rate and date.
5. Represents number of units held.
6. Restricted securities - Investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on each holding is as follows:
ACQUISITION
ACQUISITION COST
SECURITY DATE (000S)
Ampex Corp. 8% 2/16/95 $ 1,430
Atlantis Group, Inc.
(Trivest/Winston) 4/6/93 $ 46,451
Chancellor Trust unit
Class 1 10/12/94 $ 1,495
Continental Airlines Corp.
10.22%, 7/1/00 7/1/95 $ 8,753
FF Holdings Corp. 10/2/92 $ 18
Freuhauf Trailer Corp. 5/16/95 to
(warrants) 5/18/95 $ 1,335
Gulf Canada
Resources Ltd. 10/15/93 $ 134
Hat Brands, Inc. 9/2/92 to
(warrants) 2/23/94 $ 0
Heileman G
Brewing, Inc. unit
Class 1 1/21/94 $ 3,000
H/M Hat Brands
Trust unit Class 1
2/22/94 $ 1,500
ACQUISITION
ACQUISITION COST
SECURITY DATE (000S)
Littlefield Co.
Series B, 10%,
12/31/95 2/28/94 $ 4,070
Purity Supreme Inc.
(warrants) 4/25/95 $ 0
Terex Corp. (rights). 7/29/92 $ 0
WCI Communities LP
17%, 7/24/98 7/24/95 $ 7,900
7. Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $34,086,000 or 3.3% of net
assets.
8. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end. The due dates on these types of
securiteies reflects the next interest rate reset date or, when applicable,
the final maturity date.
9. Issuer filed for protection under the Federal Bankruptcy Code, but is
currently paying interest under court stipulation.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 0.0% AAA, AA, A 0.0%
Baa 0.0% BBB 1.3%
Ba 12.0% BB 9.3%
B 25.4% B 31.2%
Caa 15.6% CCC 9.7%
Ca, C 0.7% CC, C 0.0%
D 0.5%
For some foreign government obligations, FMR has assigned the ratings of
the sovereign credit of the issuing government. The percentage not rated by
either S&P or Moody's amounted to 13.6% including long-term debt
categorized as other securities. FMR has determined that unrated debt
securities that are lower quality account for 13.6% of the total value of
investment in securities.
INCOME TAX INFORMATION
At October 31, 1995, the aggregate cost of investment securities for income
tax purposes was $980,627,749. Net unrealized appreciation aggregated
$40,611,650, of which $58,446,821 related to appreciated investment
securities and $17,835,171 related to depreciated investment securities.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNTS) OCTOBER 31, 1995 (UNAUDITED)

ASSETS

Investment in securities, at value (including repurchase $ 1,021,239
agreements of $184,454) (cost $980,259) -
See accompanying schedule

Cash 1

Receivable for investments sold 15,878

Receivable for fund shares sold 634

Dividends receivable 294

Interest receivable 18,081

TOTAL ASSETS 1,056,127

LIABILITIES

Payable for investments purchased $ 7,273

Distributions payable 1,352

Accrued management fee 677

TOTAL LIABILITIES 9,302

NET ASSETS $ 1,046,825

Net Assets consist of:

Paid in capital $ 998,943

Undistributed net investment income 3,582

Accumulated undistributed net realized gain (loss) on 3,319
investments and foreign currency transactions

Net unrealized appreciation (depreciation) on 40,981
investments and assets and liabilities in foreign
currencies

NET ASSETS, for 84,753 shares outstanding $ 1,046,825

NET ASSET VALUE, offering price and redemption price per $12.35
share ($1,046,825 (divided by) 84,753 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS ENDED OCTOBER 31, 1995 (UNAUDITED)

INVESTMENT INCOME $ 2,493
Dividends

Interest 40,371

TOTAL INCOME 42,864

EXPENSES

Management fee $ 3,633

Non-interested trustees' compensation 2

TOTAL EXPENSES 3,635

NET INVESTMENT INCOME 39,229

REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:

Investment securities 14,710

Foreign currency transactions 2 14,712

Change in net unrealized appreciation (depreciation) on:

Investment securities 24,689

Assets and liabilities in foreign currencies (5) 24,684

NET GAIN (LOSS) 39,396

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 78,625
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS YEAR ENDED
ENDED OCTOBER APRIL 30,
31,1995 1995
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

Operations $ 39,229 $ 55,658
Net investment income

Net realized gain (loss) 14,712 2,196

Change in net unrealized appreciation (depreciation) 24,684 13,973

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 78,625 71,827
FROM OPERATIONS

Distributions to shareholders (38,677) (52,852)
From net investment income

In excess of net investment income (7,896) (6,231)

From net realized gain (2,390) (4,360)

In excess of net realized gain (2,523) -

TOTAL DISTRIBUTIONS (51,486) (63,443)

Share transactions 268,825 362,723
Net proceeds from sales of shares

Reinvestment of distributions 41,306 49,861

Cost of shares redeemed (100,332) (252,616)

Redemption fees 290 560

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 210,089 160,528
FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS 237,228 168,912

NET ASSETS

Beginning of period 809,597 640,685

End of period (including undistributed net investment $ 1,046,825 $ 809,597
income of $3,582 and $10,926, respectively)

OTHER INFORMATION
Shares

Sold 22,073 31,214

Issued in reinvestment of distributions 3,401 4,297

Redeemed (8,258) (21,903)

Net increase (decrease) 17,216 13,608

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS ENDED YEARS ENDED APRIL 30, AUGUST 29, 1990
OCTOBER 31, 1995 (COMMENCEMEN
T OF OPERATIONS)
TO

(UNAUDITED) 1995 1994 C 1993 1992 APRIL 30, 1991

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA

Net asset value, $ 11.990 $ 11.880 $ 12.220 $ 11.900 $ 10.640 $ 10.000
beginning of
period

Income from .511 1.076 1.101 1.175 1.292 .811
Investment
Operations
Net investment
income

Net realized and .546 .139 .357 .672 1.614 .602
unrealized gain
(loss)

Total from invest- 1.057 1.215 1.458 1.847 2.906 1.413
ment operations

Less Distributions (.524) (.927) (.976) (1.183) (1.342) (.796)
From net invest-
ment income

In excess of net (.107) (.109) (.078) - - -
in-
vestment
income

From net realized (.030) (.080) (.790) (.370) (.320) -
gain

In excess of net (.040) - - - - -
realized gain

Total distributions (.701) (1.116) (1.844) (1.553) (1.662) (.796)

Redemption fees .004 .011 .046 .026 .016 .023
added to paid
in capital

Net asset value, $ 12.350 $ 11.990 $ 11.880 $ 12.220 $ 11.900 $ 10.640
end of period

TOTAL RETURN B 9.09% 11.07 12.70 16.96 29.76 15.33%
% % % %

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of $ 1,047 $ 810 $ 641 $ 601 $ 371 $ 101
period (in millions)

Ratio of expenses .80% .80 .75 .70 .70 .70%
to average net A % % % % A
assets

Ratio of net 8.59% 8.41 8.07 9.57 11.43 11.98%
investment A % % % % A
income to
average net
assets

Portfolio turnover 208% 172 213 136 99 72%
rate A % % % % A

</TABLE>

A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C EFFECTIVE MAY 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION 93-2,
"DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF INCOME,
CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES."
AS A RESULT, NET INVESTMENT INCOME PER SHARE MAY REFLECT CERTAIN
RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
NOTES TO FINANCIAL STATEMENTS
For the period ended October 31, 1995 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Spartan High Income Fund (the fund) is a fund of Fidelity Fixed-Income
Trust (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 following summarizes the
significant accounting policies of the fund:
SECURITY VALUATION. Securities for which quotations are readily available
are valued by a pricing service at their market values as determined by
their most recent bid prices in the principal market (sales prices if the
principal market is an exchange) in which such securities are normally
traded. Securities (including restricted securities) for which market
quotations are not readily available are valued at their fair value as
determined in good faith under consistently applied procedures under the
general supervision of the Board of Trustees. Short-term securities
maturing within sixty days of their purchase date are valued at amortized
cost or original cost plus accrued interest, both of which approximate
current value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Purchases and
sales of securities, income receipts, and expense payments are translated
into U.S. dollars at the prevailing exchange rate on the respective dates
of the transactions.
Net realized gains and losses on foreign currency transactions represent
net gains and losses from sales and maturities of forward currency
contracts, disposition of foreign currencies, currency gains and losses
realized between the trade and settlement dates on securities transactions,
and the difference between the amount of net investment income accrued and
the U.S. dollar amount actually received. The effects of changes in foreign
currency exchange rates on investments in securities are included with the
net realized and unrealized gain or loss on investment securities.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes substantially all of its taxable income for
its fiscal year. The schedule of investments includes information regarding
income taxes under the caption "Income Tax Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date;
except certain dividends from foreign securities where the ex-dividend date
may have passed, are recorded as soon as the fund is informed of the
ex-dividend date. Interest income, which includes accretion of original
issue discount, is accrued as earned. Investment income is recorded net of
foreign taxes withheld where recovery of such taxes is uncertain. The fund
may place a debt obligation on non-accrual status and reduce related
interest income by ceasing current accruals and
1. SIGNIFICANT ACCOUNTING POLICIES- CONTINUED
INVESTMENT INCOME - CONTINUED
writing off interest receivables when the collection of all or a portion of
interest has become doubtful based on consistently applied procedures,
under the general supervision of the Board of Trustees of the fund. A debt
obligation is removed from non-accrual status when the issuer resumes
interest payments or when collectibility of interest is reasonably assured.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are declared daily and paid
monthly from net investment income. Distributions from realized gains, if
any, are recorded on the ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences, which may result in distribution
reclassifications, are primarily due to differing treatments for paydown
gains/losses on certain securities, foreign currency transactions, market
discount, partnerships and losses deferred due to wash sales.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect the per-share allocation between net investment income and realized
and unrealized gain (loss). Undistributed net investment income and
accumulated undistributed net realized gain (loss) on investments and
foreign currency transactions may include temporary book and tax basis
differences which will reverse in a subsequent period. Any taxable income
or gain remaining at fiscal year end is distributed in the following year.
REDEMPTION FEES. Shares held in the fund less than 270 days are subject to
a redemption fee equal to 1% of the proceeds of the redeemed shares. The
fee, which is retained by the fund, is accounted for as an addition to paid
in capital.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
FORWARD FOREIGN CURRENCY CONTRACTS. The fund may use foreign currency
contracts to facilitate transactions in foreign securities and to manage
the fund's currency exposure. Contracts to buy generally are used to
acquire exposure to foreign currencies, while contracts to sell are used to
hedge the fund's investments against currency fluctuations. Also, a
contract to buy or sell can offset a previous contract. Losses may arise
from changes in the value of the foreign currency or if the counterparties
do not perform under the contracts' terms.
The U.S. dollar value of forward foreign currency contracts is determined
using forward currency exchange rates supplied by a quotation service.
Purchases and sales of forward foreign currency contracts having the same
settlement date and broker are offset and any realized gain (loss) is
recognized on the date of offset; otherwise, gain (loss) is recognized on
settlement date.
2. OPERATING POLICIES - CONTINUED
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission (the SEC), the fund, along with other
affiliated entities of Fidelity Management & Research Company (FMR), may
transfer uninvested cash balances into one or more joint trading accounts.
These balances are invested in one or more repurchase agreements that
mature in 60 days or less from the date of purchase, and are collateralized
by U.S. Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying U.S. Treasury or Federal Agency Securities, the market
value of which is required to be at least equal to the repurchase price.
For term repurchase agreement transactions, the underlying securities are
marked-to-market daily and maintained at a value at least equal to the
repurchase price. FMR, the fund's investment adviser, is responsible for
determining that the value of the underlying securities remains in
accordance with the market value requirements stated above.
INTERFUND LENDING PROGRAM. Pursuant to an Exemptive Order issued by the
SEC, the fund, along with other registered investment companies having
management contracts with FMR, may participate in an interfund lending
program. This program provides an alternative
credit facility allowing the fund to borrow from, or lend money to, other
participating funds.
RESTRICTED SECURITIES. The fund is permitted to 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. At the end of the period,
restricted securities (excluding 144A issues) amounted to $28,459,000 or
2.8% of net assets.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $1,018,731,000 and $799,208,000, respectively, of which U.S.
government and government agency obligations aggregated $82,148,000 and
$87,934,000, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR pays all expenses,
except the compensation of the non-interested Trustees and certain
exceptions such as interest, taxes, brokerage commissions and extraordinary
expenses. FMR receives a fee that is computed daily at an annual rate of
.80% of the fund's average net assets.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
MANAGEMENT FEE - CONTINUED
FMR also bears the cost of providing shareholder services to the fund. To
offset the cost of providing these services, FMR or its affiliates collect
certain transaction fees from the fund's shareholders which amounted to
$8,000 for the period.
BROKERAGE COMMISSIONS. The fund placed a portion of its portfolio
transactions with brokerage firms which are affiliates of FMR. The
commissions paid to these affiliated firms were $1,000 for the period.
TO CALL FIDELITY

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1.
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2.
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requested Fidelity fund quotes.
3.
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4.
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5.
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2.
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* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD AND
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MEANS THAT
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TOTAL
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE, REINVESTMENT OF
DIVIDENDS
AND CAPITAL GAINS, AND THE EFFECTS OF ANY SALES CHARGES.
INVESTMENT ADVISER
Fidelity Management & Research
Company, Boston, MA
INVESTMENT SUB-ADVISERS
Fidelity Management & Research (U.K.) Inc. London, England
Fidelity Management & Research
(Far East) Inc. Tokyo, Japan
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Robert A. Lawrence, Vice President
David Glancy, Vice President
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
CUSTODIAN
The Bank of New York
New York, NY
FIDELITY'S TAXABLE BOND FUNDS
Capital & Income
Ginnie Mae
Global Bond
Government Securities
Intermediate Bond
Investment Grade Bond
Mortgage Securities
New Markets Income
Short-Intermediate Government
Short-Term Bond
Short-Term World Income
Spartan(Registered trademark) Ginnie Mae
Spartan Government Income
Spartan High Income
Spartan Investment Grade Bond
Spartan Limited Maturity Government
Spartan Long-Term Government Bond
Spartan Short-Intermediate Government
Spartan Short-Term Income
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
(registered trademark)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE

(2_FIDELITY_LOGOS)SPARTAN(registered trademark)

SHORT-INTERMEDIATE
GOVERNMENT
FUND
SEMIANNUAL REPORT
OCTOBER 31, 1995
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

FUND TALK 7 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 10 A summary of major shifts in the
fund's investments over the past six
months.

INVESTMENTS 11 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 13 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 17 Notes to the financial statements.

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.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY,
ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC,
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL
1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST
OR SEND MONEY.
PRESIDENT'S MESSAGE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. A fund's total
return includes changes in a fund's share price, reinvestment of any
dividends (or income) and capital gains (the profits the fund earns when it
sells bonds that have grown in value), and the effect of the $5 account
closeout fee. You can also look at the fund's income to measure
performance. If Fidelity had not reimbursed certain fund expenses, the
fund's returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1995 PAST 6 PAST 1 LIFE OF
MONTHS YEAR FUND

Spartan Short-Intermediate Government 5.14% 10.55% 16.25%

Salomon Brothers 1-5 Year Treasury Index 5.39% 10.19% n/a

Average Short-Term U.S. Government Fund 4.97% 9.25% n/a

Consumer Price Index 1.18% 2.81% 8.32%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, or since the fund
started on December 18, 1992. For example, if you invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment would
be $1,050. You can compare the fund's returns to the performance of the
Salomon Brothers 1-5 Year Treasury Index - a broad measure of the
performance of short-term government bonds. To measure how the fund's
performance stacked up against its peers, you can compare it to the average
short-term U.S. government fund, which reflects the performance of 147
funds with similar objectives tracked by Lipper Analytical Services over
the past six months. These benchmarks include reinvested dividends and
capital gains, if any. Comparing the fund's performance to the consumer
price index (CPI) helps show how your fund did compared to inflation. (The
CPI returns begin on the month end closest to the fund's start date.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1995 PAST 1 LIFE OF
YEAR FUND

Spartan Short-Intermediate Government 10.55% 5.38%

Salomon Brothers 1-5 Year Treasury Index 10.19% n/a

Average Short-Term U.S. Government Fund 9.25% n/a

Consumer Price Index 2.81% 2.86%

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
Spartan Short-InterSalomon Brothers Tr
12/31/92 10000.00 10000.00
01/31/93 10120.93 10161.27
02/28/93 10208.15 10274.24
03/31/93 10247.68 10308.74
04/30/93 10301.41 10392.06
05/31/93 10297.86 10355.25
06/30/93 10377.82 10467.96
07/31/93 10413.09 10487.64
08/31/93 10480.38 10613.64
09/30/93 10496.09 10650.19
10/31/93 10523.26 10668.85
11/30/93 10502.89 10646.36
12/31/93 10568.05 10689.55
01/31/94 10658.95 10775.93
02/28/94 10563.57 10670.89
03/31/94 10376.92 10562.53
04/30/94 10330.94 10502.72
05/31/94 10338.65 10516.52
06/30/94 10346.79 10533.90
07/31/94 10479.56 10644.82
08/31/94 10503.93 10678.05
09/30/94 10454.19 10620.03
10/31/94 10473.12 10633.83
11/30/94 10457.15 10577.10
12/31/94 10513.02 10605.21
01/31/95 10660.02 10770.06
02/28/95 10847.55 10946.66
03/31/95 10902.60 11006.21
04/30/95 11012.59 11118.15
05/31/95 11255.21 11372.45
06/30/95 11321.07 11439.67
07/31/95 11342.01 11467.27
08/31/95 11422.19 11543.69
09/30/95 11476.32 11603.75
10/31/95 11579.72 11717.48

$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Spartan
Short-Intermediate Government Fund on December 31, 1992, shortly after the
fund started. As the chart shows, by October 31, 1995, the value of your
investment, with dividends reinvested, would have grown to $11,580 - a
15.80% increase on your initial investment. This assumes you still owned
the fund on October 31, 1995 and therefore does not include the effect of
the $5 account closeout fee. For comparison, look at how the Salomon
Brothers 1-5 Year Treasury Index did over the same period. With dividends
reinvested, the same $10,000 investment would have grown to $11,717 - a
17.17% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, generally move in the
opposite direction of interest
rates. In turn, the share price,
return, and yield of a fund that
invests in bonds will vary. That
means if you sell your shares
during a market downturn, you
might lose money. But if you
can ride out the market's ups
and downs, you may have a
gain.
(checkmark)
TOTAL RETURN COMPONENTS
SIX MONTHS YEARS ENDED APRIL 30, DECEMBER 18, 1992
ENDED (COMMENCEMENT OF
OCTOBER 31, OPERATIONS) TO

1995 1995 1994 APRIL 30, 1993

Dividend return 3.67% 7.12% 6.14% 2.53%

Capital appreciation 1.47% -0.54% -5.87% 0.88%
return

Total return 5.14% 6.58% 0.27% 3.41%

DIVIDEND returns and capital appreciation returns are both part of a bond
fund's total return. A dividend return reflects the actual dividends paid
by the fund. A capital appreciation return reflects both the amount paid by
the fund to shareholders as capital gain distributions and changes in the
fund's share price. Both returns assume the dividends or gains are
reinvested. Capital appreciation returns and total returns include the
effect of the $5 account closeout fee on an average sized account.
DIVIDENDS AND YIELD
PERIODS ENDED OCTOBER 31, 1995 PAST PAST 6 PAST 1
MONTH MONTHS YEAR

Dividends per share 5.60(cents) 34.07(cents) 68.11(cents)

Annualized dividend rate 6.89% 7.07% 7.22%

30-day annualized yield 5.41% - -

DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on an average share price of $9.57 over
the past month, $9.56 over the past six months and $9.44 over the past
year, you can compare the fund's income over these three periods. The
30-day annualized YIELD is a standard formula for all funds based on the
yields of the bonds in the fund, averaged over the past 30 days. This
figure shows you the yield characteristics of the fund's investments at the
end of the period. It also helps you compare funds from different companies
on an equal basis. If the adviser had not reimbursed certain fund expenses
during the periods shown, the yield would have been 5.27% and the dividend
rate and total returns would have been lower.
FUND TALK: THE MANAGER'S OVERVIEW

An interview with Curt Hollingsworth, Portfolio Manager of Spartan
Short-Intermediate Government Fund
Q. CURT, HOW HAS THE FUND PERFORMED?
A. It has done well. For the six- and 12-month periods ended October 31,
1995, the fund had total returns of 5.14% and 10.55%, respectively. Those
beat the total returns for the average short-term U.S. government bond
fund, which returned 4.97% for the same six-month period and 9.25% for the
same 12-month period, according to Lipper Analytical Services. The Salomon
Brothers 1-5 Year Treasury Index had a total return of 5.39% for the
six-month period and 10.19% for the 12-month period.
Q. WHAT IS MEANT BY TOTAL RETURN?
A. Total return is simply the "total" amount of return to the fund's
shareholder, and reflects a sum of income and changes in share price.
Interest income is the main source of return for a bond fund over the long
term. However, over the shorter term, changes in a bond fund's share price
can play a significant role. Fortunately, total return is easy to explain
by using a "dollars in, dollars out" example. If someone invested $100 in
this bond fund a year ago and reinvested all dividends and capital gains,
the investment would have been worth $110.55 as of October 31, 1995. That
is what is meant by a total return of 10.55%.
Q. HASN'T IT BEEN A PARTICULARLY GOOD YEAR FOR BONDS?
A. Yes, quite good. Since November 1994, we've seen a big bull market in
bonds that has completely reversed all of the sharp declines that occurred
through much of 1994. In some ways, it's been a rather quiet rally,
especially after headlines in 1994 highlighted the severe downturn. But,
again, all of last year's bond market losses have been recouped this year.
Q. WHAT HELPED THE FUND TOP THE LIPPER AVERAGE OVER THE PAST YEAR?
A. My sense is that as interest rates were rising in 1994, other bond fund
managers structured their funds so that they would have shorter and shorter
durations. Duration is a measure of a bond's or bond fund's sensitivity to
changes in interest rates. The shorter a fund's duration, the less
sensitive its share price is to changes in interest rates. Perhaps other
fund managers were concerned that interest rates would keep rising and
didn't expect the decline in rates we saw in 1995. While interest rates
were rising, this fund didn't undergo a marked decrease in duration. It
stayed the course and maintained a duration that was in line with the
market for Treasury notes maturing in one to five years. As a result, the
fund was better able to participate in the bond market rally we've seen
since November 1994, as interest rates have come down significantly.
Q. HAVEN'T YOU ONCE AGAIN INCREASED THE FUND'S STAKE IN GINNIE MAES
RECENTLY?
A. Yes, I have increased the fund's Ginnie Mae position to 17.6% of
investments as of October 31, 1995. In the fall, the prices of Ginnie Maes
became relatively less expensive than Treasury bond alternatives. This
happened because as Treasury prices were rising dramatically, Ginnie Mae
prices were rising more slowly, causing the Ginnie Maes to become
undervalued. As a result, Ginnie Maes now offer significantly higher yields
than Treasuries. In order to take advantage of this, I invested more of the
fund in Ginnie Maes. Looking ahead, I believe that these securities can
appreciate and help enhance the income and performance of the fund.
Q. WHAT ARE GINNIE MAES?
A. Ginnie Maes are mortgage-backed securities issued by the Government
National Mortgage Asociation (GNMA). These securities are backed by the
full faith and credit of the United States government. As a result, there
are no securities of a higher credit quality than Ginnie Maes. I invest in
Ginnie Maes when I expect that they will outperform comparable Treasury
notes.
Q. WHAT OTHER CHANGES HAVE YOU MADE TO THE FUND'S STRUCTURE?
A. During the past year, I have added State of Israel notes that are fully
guaranteed by the United States, acting through the Agency for
International Development. These agency notes were purchased because they
offered higher yields than comparable Treasuries.
Q. THE FUND'S AVERAGE MATURITY WAS LITTLE CHANGED FROM SIX MONTHS AGO. WHY?
A. My approach is not to guess the direction of the market, but rather to
focus my attention on identifying the most attractive sectors within the
market and the most undervalued securities within each sector. As a result,
I don't intend to time the market by shifting direction in anticipation of
interest rate changes. Instead, I will manage the fund so that it will have
approximately the same duration as the Salomon Brothers 1-5 Year Treasury
Index.
Q. WHAT'S YOUR OUTLOOK?
A. My outlook is that both inflation and interest rates will be more stable
in the coming year than they have been in recent years. As a result, I plan
to spend more time looking for opportunities in the Ginnie Mae market,
because these securities tend to perform better during periods of
stability. If I am successful in uncovering these opportunities, they could
add yield and return that will benefit the fund's shareholders.

COUPON DISTRIBUTION AS OF OCTOBER 31, 1995
% OF FUND'S % OF FUND'S INVESTMENTS
INVESTMENTS 6 MONTHS AGO

Under 7% 1.7 7.0

7 - 7.99% 24.2 25.4

8 - 8.99% 39.0 59.0

9 - 9.99% 11.6 0.0

10 - 10.99% 1.0 0.8

11% and over 0.2 0.2

COUPON DISTRIBUTION SHOWS THE RANGE OF STATED INTEREST RATES ON THE FUND'S
INVESTMENTS, EXCLUDING REPURCHASE AGREEMENTS.
AVERAGE YEARS TO MATURITY AS OF OCTOBER 31, 1995
6 MONTHS AGO

Years 2.6 2.7

AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY DOLLAR
AMOUNT.
DURATION AS OF OCTOBER 31, 1995
6 MONTHS AGO

Years 2.2 2.2

Mortgage-backed
securities 2.4%
U.S. Treasury
obligations 77.4%
U.S. government
agency obligations 12.6%
Repurchase
agreements 7.6%

Row: 1, Col: 1, Value: 22.3
Row: 1, Col: 2, Value: 12.5
Row: 1, Col: 3, Value: 47.6
Row: 1, Col: 4, Value: 17.6
Row: 1, Col: 1, Value: 7.6
Row: 1, Col: 2, Value: 12.6
Row: 1, Col: 3, Value: 77.40000000000001
Row: 1, Col: 4, Value: 2.4
INVESTMENTS OCTOBER 31, 1995 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS - 60.1%
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (B) AMOUNT (000S) (000S)
U.S. TREASURY OBLIGATIONS - 47.6%
7 1/4%, 11/15/96 $ 1,500,000 $ 1,524,378
8 1/2%, 5/15/97 660,000 687,634
8 3/4%, 10/15/97 24,270,000 25,650,235
9%, 5/15/98 3,360,000 3,619,862
9 1/4%, 8/15/98 9,060,000 9,875,400
7 3/4%, 12/31/99 13,116,000 14,044,350
55,401,859
U.S. GOVERNMENT AGENCY OBLIGATIONS - 12.5%
State of Israel (guaranteed by U.S. Government
through Agency for International Development):
5 1/4%, 3/15/98 220,000 217,318
4 7/8%, 9/15/98 120,000 117,000
6%, 2/15/99 50,000 50,146
7 1/8%, 8/15/99 11,638,000 12,080,779
7 3/4%, 11/15/99 514,000 544,568
5 3/4%, 3/15/00 280,000 277,026
6.05%, 8/15/00 1,260,000 1,263,578
14,550,415
TOTAL U.S. GOVERNMENT AND GOVERNMENT
AGENCY OBLIGATIONS (Cost $68,999,188) 69,952,274
U.S. GOVERNMENT AGENCY - MORTGAGE-BACKED SECURITIES - 17.6%
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 17.6%
8.00%, 11/15/10 18,400,000 19,055,592
10.00%, 6/15/13 to 11/15/25 1,114,072 1,219,802
12.00%, 1/15/14 to 3/15/14 83,745 95,207
13.00%, 9/15/14 73,618 86,039
TOTAL U.S. GOVERNMENT AGENCY -
MORTGAGE-BACKED SECURITIES (Cost $20,442,600) 20,456,640
REPURCHASE AGREEMENTS - 22.3%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a
joint trading account at 5.88%,
dated 10/31/95 due 11/1/95 (Note 3) $ 26,014,248 26,010,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $115,451,788) $ 116,418,914
INCOME TAX INFORMATION
At October 31, 1995, the aggregate cost of investment securities for income
tax purposes was $115,451,788. Net unrealized appre- ciation aggregated
$967,126, of which $995,232 related to appreciated investment securities
and $28,106 related to depreciated investment securities.
At April 30, 1995 the fund had a capital loss carryforward of approximately
$2,494,000 of which $168,000 and $2,326,000 will expire on April 30, 2002
and 2003, respectively.
The fund has elected to defer to its fiscal year ending April 30, 1996
approximately $1,181,000 of losses recognized during the period November 1,
1994 to April 30, 1995.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS OCTOBER 31, 1995 (UNAUDITED)

ASSETS

Investment in securities, at value (including repurchase $ 116,418,914
agreements of $26,010,000) (cost $115,451,788) -
See accompanying schedule

Cash 608

Interest receivable 1,093,575

TOTAL ASSETS 117,513,097

LIABILITIES

Payable for investments purchased $ 19,540,578

Payable for fund shares redeemed 59,202

Distributions payable 69,837

Accrued management fee 39,847

TOTAL LIABILITIES 19,709,464

NET ASSETS $ 97,803,633

Net Assets consist of:

Paid in capital $ 99,927,327

Distributions in excess of net investment income (6,046)

Accumulated undistributed net realized gain (loss) (3,084,774)
on investments

Net unrealized appreciation (depreciation) on 967,126
investments

NET ASSETS, for 10,204,956 shares outstanding $ 97,803,633

NET ASSET VALUE, offering price and redemption price per $9.58
share ($97,803,633 (divided by) 10,204,956 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS ENDED OCTOBER 31, 1995 (UNAUDITED)

INVESTMENT INCOME $ 3,619,973
Interest

EXPENSES

Management fee $ 314,488

Non-interested trustees' compensation 175

Total expenses before reductions 314,663

Expense reductions (146,158) 168,505

NET INVESTMENT INCOME 3,451,468

REALIZED AND UNREALIZED GAIN (LOSS) 600,580
Net realized gain (loss) on investment securities

Change in net unrealized appreciation (depreciation) on 871,665
investment securities

NET GAIN (LOSS) 1,472,245

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 4,923,713
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS YEAR ENDED
ENDED OCTOBER APRIL 30,
31, 1995 1995
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

Operations $ 3,451,468 $ 4,148,797
Net investment income

Net realized gain (loss) 600,580 (2,078,331)

Change in net unrealized appreciation (depreciation) 871,665 2,114,235

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 4,923,713 4,184,701
FROM OPERATIONS

Distributions to shareholders from net investment income (3,453,045) (3,933,715)

Share transactions 39,561,364 90,170,216
Net proceeds from sales of shares

Reinvestment of distributions 2,960,111 3,267,353

Cost of shares redeemed (40,076,449) (53,526,180)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 2,445,026 39,911,389
FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS 3,915,694 40,162,375

NET ASSETS

Beginning of period 93,887,939 53,725,564

End of period (including distributions in excess of $ 97,803,633 $ 93,887,939
net investment income of $6,046 and $4,469,
respectively)

OTHER INFORMATION
Shares

Sold 4,135,625 9,650,275

Issued in reinvestment of distributions 309,302 348,431

Redeemed (4,187,042) (5,715,464)

Net increase (decrease) 257,885 4,283,242

</TABLE>

FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED APRIL DECEMBER 18, 1992
ENDED 30, (COMMENCEMENT
OCTOBER 31, OF OPERATIONS) TO
1995 APRIL 30,

(UNAUDITED) 1995 1994 E 1993

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 9.440 $ 9.490 $ 10.090 $ 10.000

Income from Investment Operations .341 .665 .616 .257
Net investment income

Net realized and unrealized .140 (.065) (.579) .083
gain (loss) D

Total from investment operations .481 .600 .037 .340

Less Distributions (.341) (.650) (.617) (.250)
From net investment income

In excess of net investment income - - (.010) -

In excess of net realized gain - - (.010) -
on investments

Total distributions (.341) (.650) (.637) (.250)

Net asset value, end of period $ 9.580 $ 9.440 $ 9.490 $ 10.090

TOTAL RETURN B, C 5.15% 6.60% .29% 3.43%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 97,804 $ 93,888 $ 53,726 $ 54,853

Ratio of expenses to average .35% A, .10% .10% .02% A,
net assets F F F F

Ratio of net investment income to 7.08% A 7.35% 7.33% 7.28% A
average net assets

Portfolio turnover rate 180% A 282% 271% 587% A

</TABLE>

A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 6 OF NOTES TO FINANCIAL
STATEMENTS).
C TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D THE AMOUNT SHOWN FOR A SHARE OUTSTANDING DOES NOT CORRESPOND WITH THE
AGGREGATE NET GAIN ON INVESTMENTS FOR THE PERIOD ENDED DUE TO THE TIMING OF
SALES AND REPURCHASES OF FUND SHARES IN RELATION TO FLUCTUATING MARKET
VALUES OF THE INVESTMENTS OF THE FUND.
E EFFECTIVE MAY 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION 93-2,
"DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF
INCOME, CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT
COMPANIES." AS A RESULT, NET INVESTMENT INCOME PER SHARE MAY REFLECT
CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
F FMR VOLUNTARILY AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES
DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
NOTES TO FINANCIAL STATEMENTS
For the period ended October 31, 1995 (Unaudited)

5. SIGNIFICANT ACCOUNTING POLICIES.
Spartan Short-Intermediate Government Fund (the fund) is a fund of Fidelity
Fixed-Income Trust (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 following
summarizes the significant accounting policies of the fund:
SECURITY VALUATION. Securities are valued based upon a computerized matrix
system and/or appraisals by a pricing service, both of which consider
market transactions and dealer-supplied valuations. Short-term securities
maturing within sixty days of their purchase date are valued either at
amortized cost or original cost plus accrued interest, both of which
approximate current value. Securities for which market quotations are not
readily available are valued at their fair value as determined in good
faith under consistently applied procedures under the general supervision
of the Board of Trustees.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes substantially all of its taxable income for
its fiscal year. The schedule of investments includes information regarding
income taxes under the caption "Income Tax Information."
INVESTMENT INCOME. Interest income, which includes accretion of original
issue discount, is accrued as earned.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS.
Distributions are declared daily and paid monthly from net investment
income. Distributions from realized gains, if any, are recorded on the
ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences, which may result in distribution
reclassifications, are primarily due to differing treatments for paydown
gains/losses on certain securities, market discount, capital loss
carryforwards and losses deferred due to wash sales and excise tax
regulations.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect the per-share allocation between net investment income and realized
and unrealized gain (loss). Distributions in excess of net investment
income and accumulated undistributed net realized gain (loss) on
investments may include temporary book and tax basis differences that will
reverse in a subsequent period. Any taxable income or gain remaining at
fiscal year end is distributed in the following year.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
6. OPERATING POLICIES.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other affiliated
entities of Fidelity Management & Research Company (FMR), may transfer
uninvested cash balances into one or more joint trading accounts. These
balances are invested in one or more repurchase agreements that mature in
60 days or less from the date of purchase, and are collateralized by U.S.
Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying U.S. Treasury or Federal Agency Securities, the market
value of which is required to be at least equal to the repurchase price.
For term repurchase agreement transactions, the underlying securities are
marked-to-market daily and maintained at a value at least equal to the
repurchase price. FMR, the fund's investment adviser, is responsible for
determining that the value of the underlying securities remains in
accordance with the market value requirements stated above.
7. JOINT TRADING ACCOUNT.
At the end of the period, the fund had 20% or more of its total investments
in repurchase agreements through a joint trading account. These repurchase
agreements were with entities whose creditworthiness has been reviewed and
found satisfactory by FMR. The maturity values of the joint trading account
investments were $26,014,248 at 5.88%. The investments in repurchase
agreements through the joint trading account are summarized as follows:
SUMMARY OF JOINT TRADING
Dated 10/31/95, due 11/1/95
Number of dealers or banks 25
Maximum amount with one dealer or bank 15.0%
Aggregate principal amount of agreements $18,413,950,000
Aggregate maturity amount of agreements $18,416,960,000
Aggregate market value of collateral $18,835,133,000
Coupon rates of collateral 0.0% to 15.75%
Maturity dates of collateral 11/15/95 to 11/15/24
8. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of long-term U.S. government and government agency
obligations aggregated $87,479,295 and $82,617,473, respectively.
9. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR pays all expenses,
except the compensation of the non-interested Trustees and certain
exceptions such as interest, taxes, brokerage commissions and extraordinary
expenses. FMR receives a fee that is computed daily at an annual rate of
.65% of the fund's average net assets.
FMR also bears the cost of providing shareholder services to the fund. To
offset the cost of providing these services, FMR or its affiliates collect
certain transaction fees from the fund's shareholders which amounted to
$2,870 for the period.
10. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse the fund's operating expenses
(excluding interest, taxes, brokerage commissions and extraordinary
expenses) above a specified percentage of average net assets. During the
period, this expense limitation ranged from .20% to .50% of average net
assets and the reimbursement reduced expenses by $146,158.
11. LITIGATION.
On April 21, 1995, a former shareholder of the fund filed a complaint in
the United States District Court in Philadelphia against Fidelity Fixed
Income Trust, FMR, Fidelity Distributors Corporation and FMR Corp. The
complaint alleges that, in violation of the federal securities laws and a
Pennsylvania consumer protection statute, the fund's prospectuses and
registration statements prior to June 1995 contained misleading statements
regarding the dollar-weighted average maturity of the fund's portfolio. By
order dated November 22, 1995, the Court certified the suit as a class
action, on behalf of those persons who purchased fund shares pursuant to
the fund's 1992, 1993, and 1994 prospectuses and registration statements,
with respect to the former shareholder's claims under sections 11 and 15 of
the Securities Act of 1933 and the state consumer protection statute. The
Court denied certification of the suit as a class action under section 12
of the Securities Act of 1933. The complaint seeks rescission and
unspecified monetary damages and attorney's fees, and such other relief as
the Court may grant. The defendants deny the allegations in the complaint
and intend to defend the action vigorously.

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