FIDELITY FIXED INCOME TRUST, N-30D, 1995-06-13

FIDELITY FIXED INCOME TRUST
N-30D, 1995-06-13

Previous: FAYS INC, 10-Q, 1995-06-13

Next: FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY, 10-Q, 1995-06-13

(2_FIDELITY_LOGOS)FIDELITY

INVESTMENT GRADE BOND
FUND
ANNUAL REPORT
APRIL 30, 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.

REPORT OF INDEPENDENT 29 The auditors' opinion.
ACCOUNTANTS

DISTRIBUTIONS 30

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, THE
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT
RISK,
INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. 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 there have been some positive market indications so far in 1995,
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. Each figure
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 APRIL 30, 1995 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

Investment Grade Bond 4.63% 60.27% 153.14%

Lehman Brothers Aggregate Bond Index 6.51% 56.73% 163.84%

Average Corporate BBB-Rated Bond Fund 6.39% 60.33% 155.86%

Consumer Price Index 3.05% 17.84% 42.10%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, 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 75 funds
with similar objectives tracked by Lipper Analytical Services over the past
12 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 APRIL 30, 1995 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

Investment Grade Bond 4.63% 9.89% 9.73%

Lehman Brothers Aggregate Bond Index 6.51% 9.40% 10.19%

Average Corporate BBB-Rated Bond 6.39% 9.88% 9.82%
Fund

Consumer Price Index 3.05% 3.34% 3.58%

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 GradeAggregate Bond I
04/30/85 10000.00 10000.00
05/31/85 10431.11 10522.57
06/30/85 10543.55 10633.81
07/31/85 10487.24 10596.73
08/31/85 10694.97 10795.93
09/30/85 10776.41 10861.04
10/31/85 10989.12 11088.69
11/30/85 11295.88 11355.15
12/31/85 11605.46 11702.24
01/31/86 11658.04 11767.34
02/28/86 12168.95 12231.28
03/31/86 12462.04 12614.15
04/30/86 12558.75 12678.39
05/31/86 12271.16 12436.51
06/30/86 12624.14 12761.18
07/31/86 12689.16 12874.57
08/31/86 12926.65 13193.64
09/30/86 12713.76 13063.86
10/31/86 12902.01 13253.14
11/30/86 13087.54 13437.68
12/31/86 13185.90 13488.98
01/31/87 13372.86 13678.70
02/28/87 13467.88 13773.55
03/31/87 13366.72 13711.46
04/30/87 12917.79 13335.49
05/31/87 12816.39 13283.32
06/30/87 12933.55 13466.13
07/31/87 12935.88 13455.78
08/31/87 12862.55 13383.78
09/30/87 12540.07 13098.78
10/31/87 12886.26 13565.30
11/30/87 13040.61 13673.95
12/31/87 13200.67 13860.22
01/31/88 13709.58 14347.43
02/29/88 13922.56 14517.74
03/31/88 13742.55 14381.49
04/30/88 13660.16 14303.88
05/31/88 13559.61 14207.74
06/30/88 13842.36 14550.51
07/31/88 13799.54 14474.19
08/31/88 13818.03 14512.14
09/30/88 14105.18 14840.68
10/31/88 14333.54 15120.08
11/30/88 14205.16 14936.40
12/31/88 14246.51 14953.22
01/31/89 14395.63 15168.37
02/28/89 14369.62 15058.42
03/31/89 14455.99 15123.53
04/30/89 14718.02 15440.00
05/31/89 15028.28 15845.73
06/30/89 15494.56 16328.20
07/31/89 15854.05 16675.29
08/31/89 15606.48 16428.23
09/30/89 15653.68 16512.31
10/31/89 15970.30 16919.33
11/30/89 16083.48 17080.58
12/31/89 16098.60 17126.29
01/31/90 15881.21 16922.78
02/28/90 15922.15 16977.11
03/31/90 15921.69 16989.61
04/30/90 15794.36 16833.96
05/31/90 16223.85 17332.38
06/30/90 16469.54 17610.49
07/31/90 16714.77 17854.09
08/31/90 16491.57 17615.66
09/30/90 16588.13 17761.39
10/31/90 16437.15 17986.89
11/30/90 16791.25 18374.08
12/31/90 17075.05 18660.37
01/31/91 17251.18 18891.04
02/28/91 17522.07 19052.30
03/31/91 17747.62 19183.37
04/30/91 17976.48 19391.20
05/31/91 18103.72 19504.59
06/30/91 18101.66 19494.68
07/31/91 18342.22 19765.02
08/31/91 18799.85 20192.73
09/30/91 19203.57 20601.91
10/31/91 19394.93 20831.29
11/30/91 19583.68 21022.29
12/31/91 20304.69 21646.62
01/31/92 20050.48 21352.13
02/29/92 20210.50 21490.97
03/31/92 20175.78 21369.81
04/30/92 20246.48 21524.17
05/31/92 20664.20 21930.32
06/30/92 20905.91 22232.14
07/31/92 21529.48 22685.72
08/31/92 21722.69 22915.53
09/30/92 21914.96 23187.17
10/31/92 21614.66 22879.75
11/30/92 21634.65 22884.92
12/31/92 21992.95 23248.83
01/31/93 22508.24 23694.65
02/28/93 23073.14 24109.43
03/31/93 23286.59 24209.89
04/30/93 23410.05 24378.48
05/31/93 23534.30 24409.52
06/30/93 24151.10 24851.89
07/31/93 24523.08 24992.45
08/31/93 25201.45 25430.52
09/30/93 25273.83 25500.37
10/31/93 25573.84 25595.65
11/30/93 25357.71 25377.92
12/31/93 25562.11 25515.46
01/31/94 25961.73 25859.96
02/28/94 25114.83 25410.68
03/31/94 24378.89 24784.20
04/30/94 24193.51 24586.30
05/31/94 24236.30 24582.85
06/30/94 24101.43 24528.52
07/31/94 24480.91 25015.74
08/31/94 24555.51 25046.78
09/30/94 24349.76 24678.14
10/31/94 24253.55 24656.15
11/30/94 24327.77 24601.39
12/31/94 24193.97 24771.27
01/31/95 24474.79 25261.50
02/28/95 24815.33 25862.11
03/31/95 24959.38 26020.78
04/28/95 25313.66 26384.25

$10,000 OVER 10 YEARS: Let's say you invested $10,000 in Investment Grade
Bond Fund on April 30, 1985. As the chart shows, by April 30, 1995, the
value of your investment would have grown to $25,314 - a 153.14% 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 $26,384 - a 163.84%
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,

1995 1994 1993 1992 1991

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

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

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

Dividends per share 3.87(cents) 23.75(cents) 48.70(cents)

Annualized dividend rate 6.73% 6.92% 6.94%

30-day annualized yield 6.73% - -

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 $7.00 over
the past month, $6.92 over the past six months and $7.02 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

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: April 6, 1971
SIZE: as of April 30, 1995,
more than $1 billion
MANAGER: Michael Gray,
since 1987; also manages
Fidelity Intermediate Bond,
Fidelity Advisor Limited Term
Bond and Spartan
Investment Grade Bond
funds; joined
Fidelity in 1982
(checkmark)

MICHAEL GRAY ON THE RECENT
STRENGTH OF CORPORATE BONDS:
"The corporate bond market
has been strong over the past
six months for two reasons.
The first is that overall credit
quality has improved. The
growth in the economy has
helped companies post strong
earnings. In addition,
companies engaged in a fair
amount of cost cutting in the
early '90s, which really has
helped their balance sheets
through this recovery. They
also took advantage of low
interest rates in 1993,
refinancing high-cost debt
with low-cost debt.
"At the same time, a second
factor has helped. There's
been a very limited supply of
new corporate issues. That's
because strong earnings
have made it less necessary
for companies to issue debt in
order to finance capital
improvements or for other
reasons. In 1994, new
corporate issuance was about
25% of what it had been in
1993. With limited supply,
strong demand and improved
credit, it has been a very
favorable environment for
corporate bonds."
INVESTMENT CHANGES

QUALITY DIVERSIFICATION AS OF APRIL 30, 1995
(MOODY'S RATINGS) % OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS
6 MONTHS AGO

Aaa 47.9 34.8

Aa 3.0 3.2

A 9.2 11.3

Baa 14.0 19.3

Ba 3.3 9.1

B 0.0 0.7

Not rated 1.4 4.3

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 APRIL 30, 1995
6 MONTHS AGO

Years 9.5 10.7

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 APRIL 30, 1995
6 MONTHS AGO

Years 4.2 4.0

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 APRIL 30, 1995* AS OF OCTOBER 31, 1994**
27.3.3
Row: 1, Col: 1, Value: 2.0
Row: 1, Col: 2, Value: 20.2
Row: 1, Col: 3, Value: 3.0
Row: 1, Col: 4, Value: 4.0
Row: 1, Col: 5, Value: 43.5
Row: 1, Col: 6, Value: 26.3
Corporate bonds 35.5%
U.S. government
and agency
obligations 28.5%
Foreign government
obligations 18.2%
Stocks 1.3%
Short term
investments 15.0%
Other 1.5%
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: 1.75
Row: 1, Col: 2, Value: 15.0
Row: 1, Col: 3, Value: 2.3
Row: 1, Col: 4, Value: 18.2
Row: 1, Col: 5, Value: 27.5
Row: 1, Col: 6, Value: 35.5
FOREIGN
INVESTMENTS 7.8%
**
*
FOREIGN
INVESTMENTS 25.7%
INVESTMENTS APRIL 30, 1995

Showing Percentage of Total Value of Investment in Securities

NONCONVERTIBLE BONDS - 27.3%
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
BASIC INDUSTRIES - 0.5%
CHEMICALS & PLASTICS - 0.2%
Grace (W.R.) & Co. 7.40%, 2/1/00 Baa3 $ 2,500 $ 2,464
PAPER & FOREST PRODUCTS - 0.3%
Boise Cascade Corp. 9 7/8%, 2/15/01 Baa3 2,500 2,656
TOTAL BASIC INDUSTRIES 5,120
CONSTRUCTION & REAL ESTATE - 0.5%
BUILDING MATERIALS - 0.5%
Cemex SA and Tolmex:
10%, 11/15/96 (d) - 1,750 1,601
8 7/8%, 6/10/98 (d) Ba3 4,888 4,057
5,658
DURABLES - 0.9%
AUTOS, TIRES, & ACCESSORIES - 0.4%
Pep Boys-Manny, Moe & Jack 8 7/8%, 4/15/96 Baa2 4,000 4,054
CONSUMER ELECTRONICS - 0.5%
Black & Decker Corp. 7 1/2%, 4/1/03 Ba1 5,000 4,838
TOTAL DURABLES 8,892
ENERGY - 2.0%
ENERGY SERVICES - 0.9%
McDermott International, Inc.:
10 1/4%, 6/1/95 Baa3 7,000 7,018
9 3/8%, 3/15/02 Baa3 2,500 2,671
9,689
OIL & GAS - 1.1%
Oryx Energy Co. 10%, 4/1/01 Ba3 1,000 1,021
Societe Nationale Elf Aquitaine 7 3/4%, 5/1/99 Aa3 5,000 5,083
Texas Eastern Transmission Corp.:
10 3/8% 11/15/00 Baa2 3,000 3,376
10%, 8/15/01 Baa2 2,350 2,603
12,083
TOTAL ENERGY 21,772
NONCONVERTIBLE BONDS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
FINANCE - 13.2%
ASSET-BACKED SECURITIES - 1.0%
Chase Manhattan Credit Card Master Trust
8 3/4%, 8/15/99 Aaa $ 3,650 $ 3,717
Discover Card Trust, 7 7/8%, 4/16/98 A2 830 836
Premier Auto Trust, 6.65%, 3/4/97 Aaa 6,000 6,005
Standard Credit Card Master Trust I
7.65%, 2/15/00 A2 430 434
10,992
BANKS - 7.2%
Bank of Boston Corp. 6 7/8%, 7/15/03 Baa2 3,000 2,803
Central Fidelity Banks, Inc. 8.15%, 11/15/02 Baa2 4,000 4,057
Chemical Banking Corp. 8 5/8%, 5/1/02 A3 5,000 5,233
Citicorp 9%, 4/15/99 A3 2,000 2,100
Continental Bank N.A.:
12 1/2%, 4/1/01 A2 5,000 6,124
7 7/8%, 2/1/03 A2 3,000 3,020
Crestar Financial Corp. 8 3/4%, 11/15/04 Baa1 4,750 4,999
First Interstate Bancorp:
10 7/8%, 4/15/01 A3 3,500 4,025
9 3/8%, 1/23/02 A3 1,500 1,619
First Maryland Bancorp 8 3/8%, 5/15/02 Baa1 3,000 3,083
First USA Bank 5 3/4%, 1/15/99 Baa3 4,000 3,758
MBNA American Bank, N.A. 7 1/4%, 9/15/02 A3 4,600 4,435
Mercantile Bancorporation, Inc.
7 5/8%, 10/15/02 Baa1 1,000 984
NationsBank Corp. 7 3/4%, 8/15/04 A3 5,000 4,984
Provident Bank:
7 1/8%, 3/15/03 Baa2 2,500 2,374
6 3/8%, 1/15/04 Baa2 600 538
Shawmut National Corp. 7.20%, 4/15/03 Baa2 6,700 6,444
UJB Financial Corp. 8 5/8%, 12/10/02 Baa3 5,500 5,649
Wells Fargo & Co. 8 3/4%, 5/10/02 A3 5,000 5,266
Zions Bancorporation 8 5/8%, 10/15/02 BBB 5,000 5,121
76,616
CREDIT & OTHER FINANCE - 3.7%
Fleet Mortgage Group 6 1/2%, 9/15/99 A3 250 240
Ford Motor Credit Co. 7 1/2%, 1/15/03 A1 5,000 4,928
General Motors Acceptance Corp.:
7 7/8%, 2/23/98 Baa1 9,000 9,123
6%, 7/13/98 Baa1 5,000 4,806
Household Finance Corp. 7.80%, 11/1/96 A2 4,000 4,047
NONCONVERTIBLE BONDS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
FINANCE - CONTINUED
CREDIT & OTHER FINANCE - CONTINUED
Secured Finance, Inc. Kroger gtd. secured
9.05%, 12/15/04 Aaa $ 4,000 $ 4,338
Tenneco Credit Corp.:
10.05%, 8/17/98 Baa2 3,000 3,169
9 5/8%, 8/15/01 Baa2 8,000 8,736
39,387
INSURANCE - 0.2%
Metropolitan Life Insurance Co. 6.30%,
11/1/03 (d) Aa3 500 452
Nationwide Mutual Insurance Co.
6 1/2%, 2/15/04 (d) Aa3 1,500 1,368
1,820
SAVINGS & LOANS - 1.1%
Ahmanson (H.F.):
8 1/4%, 10/1/02 Baa1 750 763
7 7/8%, 9/1/04 Baa2 2,600 2,573
Great Western Bank A Federal Savings Bank
10 1/4%, 6/15/20 A3 800 871
Great Western Financial Corp. 8.60%, 2/1/02 Baa1 2,300 2,376
Home Savings of America 10 1/2%, 6/12/97 A3 5,000 5,149
11,732
TOTAL FINANCE 140,547
INDUSTRIAL MACHINERY & EQUIPMENT - 0.5%
ELECTRICAL EQUIPMENT - 0.5%
Westinghouse Electric Corp. 8 3/8%, 6/15/02 Ba1 5,000 5,032
INDUSTRIAL MACHINERY & EQUIPMENT - 0.0%
Caterpillar Inc. 8%, 2/15/23 A3 500 499
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 5,531
MEDIA & LEISURE - 2.8%
BROADCASTING - 0.6%
Telecommunications, Inc.:
7.13%, 2/2/98 Baa3 4,000 3,961
6.58%, 2/15/05 Baa3 2,500 2,406
6,367
NONCONVERTIBLE BONDS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
MEDIA & LEISURE - CONTINUED
LEISURE DURABLES & TOYS - 0.8%
Brunswick Corp. 8 1/8%, 4/1/97 Baa1 $ 3,500 $ 3,519
Mattel, Inc. 6 7/8%, 8/1/97 Baa1 5,000 4,930
8,449
LODGING & GAMING - 0.1%
First Mexican Acceptance Corp. euro:
secured 8 3/4%, 9/15/96 - 1,500 1,102
10 3/4%, 9/15/96 - 1,500 416
1,518
PUBLISHING - 1.3%
News America Holdings, Inc. 8 5/8%, 2/1/03 Ba1 5,000 5,158
Time Warner Entertainment Co. LP
9 5/8%, 5/1/02 Baa3 8,000 8,646
13,804
TOTAL MEDIA & LEISURE 30,138
NONDURABLES - 0.5%
FOODS - 0.1%
Ralcorp Holdings, Inc. 8 3/4%, 9/15/04 Ba1 800 824
TOBACCO - 0.4%
RJR Nabisco, Inc. gtd. 8 3/4%, 4/15/04 Baa3 4,200 4,177
TOTAL NONDURABLES 5,001
PRECIOUS METALS - 0.1%
Teck Corp. 8.70%, 5/1/02 Baa2 1,500 1,555
RETAIL & WHOLESALE - 0.5%
GROCERY STORES - 0.5%
American Stores Co. 9 1/8%, 4/1/02 Baa3 5,000 5,375
SERVICES - 0.5%
PRINTING - 0.5%
Valassis Communications, Inc. 9.55%, 12/1/03 Baa3 5,000 5,300
NONCONVERTIBLE BONDS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
TECHNOLOGY - 0.4%
COMPUTERS & OFFICE EQUIPMENT - 0.4%
Comdisco, Inc.:
7 3/4%, 1/29/97 Baa2 $ 2,000 $ 2,014
9 1/4%, 7/6/00 Baa2 2,000 2,155
4,169
TRANSPORTATION - 0.8%
AIR TRANSPORTATION - 0.2%
United Air Lines, Inc. equipment trust ctfs.,
9.76%, 5/13/06 Baa2 2,000 2,054
TRUCKING & FREIGHT - 0.6%
Airborne Freight Corp. 8 7/8%, 12/15/02 Baa3 5,500 5,751
Federal Express Corp. 9 7/8%, 4/1/02 Baa2 1,000 1,115
6,866
TOTAL TRANSPORTATION 8,920
UTILITIES - 4.1%
ELECTRIC UTILITY - 3.6%
British Columbia Hydro & Power Authority:
15 1/2%, 7/15/11 Aa1 1,000 1,156
15 1/2%, 11/15/11 Aa2 1,000 1,179
Gulf States Utilities Co. 9.72%, 7/1/98 Ba1 5,450 5,628
Hydro-Quebec 8.4%, 1/15/22 A1 25,000 25,095
Long Island Lighting Co. 7.30%, 7/15/99 Ba1 5,000 4,724
Systems Energy Resources, Inc. 1st mtg.
10 1/2%, 9/1/96 Baa3 1,000 1,044
38,826
GAS - 0.5%
Centragas Transpotadora De Gas
10.65%, 12/1/10 (d) - 1,250 1,213
Transco Energy Co.:
9 1/2%, 12/1/95 Baa2 2,000 2,026
9 3/8%, 8/15/01 Baa2 2,000 2,159
5,398
TOTAL UTILITIES 44,224
TOTAL NONCONVERTIBLE BONDS
(Cost $290,792) 292,202
U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS - 40.5%
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
U.S. TREASURY OBLIGATIONS - 39.7%
8 1/2%, 5/15/97 Aaa $ 31,000 $ 32,114
5 1/8%, 3/31/98 Aaa 57,090 54,681
5 3/8%, 5/31/98 Aaa 400 385
9 1/4%, 8/15/98 Aaa 4,650 4,983
6 3/4%, 6/30/99 Aaa 13,500 13,452
7 1/8%, 9/30/99 Aaa 26,030 26,278
5 3/4%, 8/15/03 Aaa 5,610 5,154
11 7/8%, 11/15/03 Aaa 16,745 21,821
11 5/8%, 11/15/04 Aaa 7,300 9,554
9 7/8%, 11/15/15 Aaa 12,500 15,662
9%, 11/15/18 Aaa 80,270 93,678
8 7/8%, 2/15/19 (e) Aaa 79,300 91,517
8 1/8%, 8/15/19 Aaa 13,340 14,284
7 5/8%, 2/15/25 Aaa 3,500 3,619
stripped coupon payment:
8/15/06 Aaa 9,715 4,309
2/15/08 Aaa 54,000 21,236
stripped principal payment, 0%, 5/15/18 Aaa 65,000 11,439
424,166
U.S. GOVERNMENT AGENCY OBLIGATIONS - 0.8%
Financing Corp. stripped principal payment:
Series 5, 0%, 2/8/18 Aaa 9,200 1,574
Series 11, 0%, 2/8/18 Aaa 900 154
0%, 3/7/19 Aaa 46,000 7,229
8,957
TOTAL U.S. GOVERNMENT AND
GOVERNMENT AGENCY OBLIGATIONS
(Cost $428,631) 433,123
U.S. GOVERNMENT AGENCY - MORTGAGE-BACKED SECURITIES - 6.0%
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 0.6%
9 1/2%, 1/1/25 to 4/1/25 Aaa 5,001 5,223
12 1/2%, 7/1/11 to 7/1/15 Aaa 699 777
6,000
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 5.4%
8%, 4/15/16 to 6/15/23 Aaa 7,303 7,341
9%, 5/15/16 to 4/15/25 Aaa 46,691 48,484
U.S. GOVERNMENT AGENCY - MORTGAGE-BACKED SECURITIES - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
GOVERNMENT NATIONAL
MORTGAGE ASSOCIATION - CONTINUED
10%, 11/15/09 to 9/15/17 Aaa $ 2,008 $ 2,165
57,990
TOTAL U.S. GOVERNMENT AGENCY -
MORTGAGE-BACKED SECURITIES
(Cost $63,055) 63,990
COLLATERALIZED MORTGAGE OBLIGATIONS - 0.0%
PRIVATE SPONSOR - 0.0%
Maryland National Bank pass thru Series 1990-1
Class A, 9 1/2%, 10/25/20 (Cost $391) Aaa 379 377
COMMERCIAL MORTGAGE SECURITIES - 0.9%
FDIC commercial Series 1994-C1
Class II-A1, 6.30%, 9/25/25 Aaa 570 569
Resolution Trust Corp. Commercial Series:
1991-M5 Class A, 9%, 3/25/17 Aa2 2,120 2,171
1994-C2 Class A-2, 7 3/4%, 4/25/25 AAA 911 913
1994-C2 Class A-4, 7 1/2%, 4/25/25 AAA 1,578 1,582
1994-C1 Class A-4, 7 1/4%, 6/25/26 AAA 1,489 1,482
1994-N2 Class 2, 6 1/2%, 12/15/04 (d) Aa2 2,100 2,098
Structured Asset Securities Corp. Commercial Series
1993-C1 Class A-1, 6.60%, 10/25/24 AA 941 914
TOTAL COMMERCIAL MORTGAGE SECURITIES
(Cost $9,662) 9,729
FOREIGN GOVERNMENT OBLIGATIONS (F) - 4.0%
Chaco Province 11 7/8%, 9/10/97 (c) - 833 816
Manitoba Province yankee:
6 7/8%, 9/15/02 A1 3,000 2,909
8.80%, 1/15/20 A1 15,000 16,229
Mexico Value Recovery (rights) (a) - 1 -
FOREIGN GOVERNMENT OBLIGATIONS (F) - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
Ontario Province yankee:
7 3/4%, 6/4/02 Aa3 $ 3,000 $ 3,049
7 3/8%, 1/27/03 Aa3 8,000 7,935
15 1/8%, 5/1/11 Aa3 7,000 7,921
Republic of Uruguay yankee
8 1/4%, 6/8/95 (d) Ba1 4,000 3,995
TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost $45,104) 42,854
NONCONVERTIBLE PREFERRED STOCKS - 1.1%
SHARES

FINANCE - 0.2%
CREDIT & OTHER FINANCE - 0.2%
BankAmerica Corp. Series 1, adj. rate 49,200 2,479
UTILITIES - 0.9%
ELECTRIC UTILITY - 0.9%
Gulf States Utilities Co. $1.75 120,000 2,760
Long Island Lighting Co. $7.95 124,040 2,946
Niagara Mohawk Power Corp.,
Series A adj. rate 71,005 1,411
Public Service Co. of New Hampshire Co.,
Series A 80,000 2,100
9,217
TOTAL NONCONVERTIBLE PREFERRED STOCKS
(Cost $11,520) 11,696
REPURCHASE AGREEMENTS - 20.2%
MATURITY
AMOUNT
(000S)
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.93%, dated
4/28/95 due 5/1/95 (Note 3) $ 215,281 215,175
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $1,064,330) $ 1,069,146
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
(000S) (000S)
SOLD
931 U.S. Treasury Bond Contracts June 1995 $ 98,075 $ (1,429)
THE FACE VALUE OF FUTURES SOLD AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 9.2%

LEGEND
(a) Non-income producing
(b) Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
(c) 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
SECURITY DATE COST (000S)
Chaco Province
11 7/8%,
9/10/97 3/9/94 $ 877

(d) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in trans- actions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $14,784,000 or 1.4% of net
assets.
(e) A portion of the security was pledged to cover margin requirements for
futures contracts. At the period end, the value of securities pledged
amounted to $5,198,000.
(f) 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.
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 60.1% AAA, AA, A 58.6%
Baa 14.0% BBB 17.3%
Ba 3.3% BB 1.4%
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 0.5%.
INCOME TAX INFORMATION
At April 30, 1995, the aggregate cost of investment securities for income
tax purposes was $1,065,187,000. Net unrealized appre- ciation aggregated
$3,959,000, of which $14,819,000 related to appreciated invest-
ment securities and $10,860,000 related to depreciated investment
securities.
The fund hereby designates $3,793,000 as a capital gain dividend for the
purpose of the dividend paid deduction.
The fund has elected to defer to its fiscal year ending April 30, 1996
$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 AMOUNTS) APRIL 30, 1995

ASSETS

Investment in securities, at value (including repurchase $ 1,069,146
agreements of $215,175) (cost $1,064,330) -
See accompanying schedule

Cash 1

Receivable for investments sold 2,490

Dividends receivable 29

Interest receivable 17,373

TOTAL ASSETS 1,089,039

LIABILITIES

Payable for fund shares redeemed $ 233

Distributions payable 983

Accrued management fee 411

Other payables and accrued expenses 311

TOTAL LIABILITIES 1,938

NET ASSETS $ 1,087,101

Net Assets consist of:

Paid in capital $ 1,119,205

Distributions in excess of net investment income (5,870)

Accumulated undistributed net realized gain (loss) on (29,671)
investments and foreign currency transactions

Net unrealized appreciation (depreciation) on 3,437
investments and assets and liabilities in foreign
currencies

NET ASSETS, for 155,105 shares outstanding $ 1,087,101

NET ASSET VALUE, offering price and redemption price per $7.01
share ($1,087,101 (divided by) 155,105 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED APRIL 30, 1995

INVESTMENT INCOME $ 1,224
Dividends

Interest 75,632

TOTAL INCOME 76,856

EXPENSES

Management fee $ 4,532

Transfer agent fees 2,245

Accounting fees and expenses 301

Non-interested trustees' compensation 5

Custodian fees and expenses 155

Registration fees 79

Audit 58

Legal 8

Miscellaneous 13

TOTAL EXPENSES 7,396

NET INVESTMENT INCOME 69,460

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

Investment securities (25,882)

Foreign currency transactions (5,703)

Futures contracts 10,029 (21,556)

Change in net unrealized appreciation (depreciation) on:

Investment securities 9,355

Assets and liabilities in foreign currencies 1,170

Futures contracts (12,020) (1,495)

NET GAIN (LOSS) (23,051)

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

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30,
1995 1994

INCREASE (DECREASE) IN NET ASSETS

Operations $ 69,460 $ 71,207
Net investment income

Net realized gain (loss) (21,556) 16,893

Change in net unrealized appreciation (depreciation) (1,495) (51,151)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 46,409 36,949
FROM OPERATIONS

Distributions to shareholders (68,863) (69,241)
From net investment income

In excess of net investment income - (1,785)

From net realized gain (15,380) -

TOTAL DISTRIBUTIONS (84,243) (71,026)

Share transactions 620,869 799,522
Net proceeds from sales of shares

Reinvestment of distributions 70,579 57,516

Cost of shares redeemed (509,255) (898,298)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 182,193 (41,260)
FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS 144,359 (75,337)

NET ASSETS

Beginning of period 942,742 1,018,079

End of period (including distributions in excess $ 1,087,101 $ 942,742
of net investment income of $5,870 and $1,877,
respectively)

OTHER INFORMATION
Shares

Sold 88,842 102,866

Issued in reinvestment of distributions 10,023 7,428

Redeemed (72,842) (115,700)

Net increase (decrease) 26,023 (5,406)

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED APRIL 30,

1995 1994 1993 1992 1991

SELECTED PER-SHARE DATA

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

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

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

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

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

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

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

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

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

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

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period $ 1,087,101 $ 942,742 $ 1,018,079 $ 943,084 $ 454,553

(000 omitted)

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

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

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

</TABLE>

NOTES TO FINANCIAL STATEMENTS
For the period ended April 30, 1995

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.
Effective May 1, 1994, the fund adopted Statement of Position (SOP) 93-4:
Foreign Currency Accounting and Financial Statement Presentation for
Investment Companies. In accordance with this SOP, 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. Further, as permitted under the SOP, the effects of changes in
foreign currency exchange rates on investments in securities are not
segregated in the Statement of Operations from the effects of changes in
market prices of those securities, but 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 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
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
INVESTMENT INCOME - CONTINUED
earned. Investment income is recorded net of foreign taxes withheld where
recovery of such taxes is uncertain.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned 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 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.
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 SEC), the fund, along with other
affiliated entities of
2. OPERATING POLICIES - CONTINUED
JOINT TRADING ACCOUNT - CONTINUED
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 securities, whose market value is required to be at least
102% of the resale price at the time of purchase. FMR, the fund's
investment adviser, is responsible for determining that the value of these
underlying securities remains at least equal to the resale price.
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. The underlying face amount at
value is shown in the schedule of investments under the caption "Futures
Contracts." This amount reflects each contract's exposure to the
underlying instrument at period end. 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 privately placed
restricted securities. These securities 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 $816,000 or .08% of net assets.
3. 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 repurchase agreements were dated April 28,
1995 and due May 1, 1995. The maturity values of the joint trading account
investments were $215,281,000 at 5.93 %. The investments in repurchase
agreements through the joint trading account are summarized as follows:
3. JOINT TRADING ACCOUNT - CONTINUED

Number of dealers or banks 20
Maximum amount with one dealer or bank 18.9%
Aggregate principal amount of agreements $15,961,400,000
Aggregate maturity amount of agreements $15,969,281,000
Aggregate market value of collateral $16,304,796,000
Coupon rates of collateral 0.0% to 15 3/4%
Maturity dates of collateral 4/30/95 to 2/15/25
4. PURCHASES AND SALES
OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $766,642,000 and $726,357,000, respectively, of which U.S.
government and government agency obligations aggregated $667,754,000 and
$421,132,000, respectively.
The market value of futures contracts opened and closed during the period
amounted to $473,670,000 and $537,471,000, respectively.
5. 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 .1325% to .3700% for the period May 1, 1994 to July 31,
1994 and .1200% to .3700% for the period August 1, 1994 to April 30,
1995. In the event that these rates were lower than the contractual rates
in effect during those periods, 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 annual rate of .46% 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 $68,687 for the
period.
5. FEES AND OTHER TRANSACTIONS WITH AFFILIATES -
CONTINUED
TRANSFER AGENT FEES. Fidelity Service Co. (FSC), an affiliate of FMR, is
the fund's transfer, dividend disbursing and shareholder servicing agent.
During the period May 1, 1994 to December 31, 1994, FSC received fees based
on the type, size, number of accounts and the number of transactions made
by shareholders. Effective January 1, 1995, the Board of Trustees approved
a revised transfer agent contract pursuant to which 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.
6. 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.
REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees of Fidelity Fixed-Income Trust and the Shareholders of
Fidelity Investment Grade Bond Fund:
We have audited the accompanying statement of assets and liabilities of
Fidelity Fixed-Income Trust: Fidelity Investment Grade Bond Fund, including
the schedule of portfolio investments, as of April 30, 1995, and the
related statement of operations for the year then ended, the statement of
changes in net assets for each of the two years in the period then ended
and the financial highlights for each of the five years in the period then
ended. These financial statements and financial highlights are the
responsibility of the fund's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of April 30, 1995 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating
the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Fixed-Income Trust: Fidelity Investment Grade Bond Fund as of
April 30, 1995, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then
ended, and the financial highlights for each of the five years in the
period then ended, in conformity with generally accepted accounting
principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
June 8, 1995
DISTRIBUTIONS

The Board of Trustees of Fidelity Investment Grade Bond Fund voted to pay
on June 5, 1995, to shareholders of record at the opening of business on
June 2, 1995, a distribution of $.03 derived from capital gains realized
from sales of portfolio securities.
A total of 27.5% of the dividends distributed during the fiscal year was
derived from interest on U.S. Government securities which is generally
exempt from state income tax.
A total of 1% of the dividends distributed during the fiscal year qualifies
for the dividends-received deductions for corporate shareholders.
The fund will notify shareholders in January 1996 of these percentages for
use in preparing 1995 income tax returns.
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.

(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC
(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND QUOTES*
1-800-544-8544
Just make a selection from this record-ed menu:
PRESS
For quotes on funds you own.
1.
For an individual fund quote.
2.
For the ten most frequently
requested Fidelity fund quotes.
3.
For quotes on Fidelity Select
Portfolios(registered trademark).
4.
To change your Personal
Identification Number (PIN).
5.
To speak with a Fidelity
representative.
6.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC
(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND ACCOUNT
BALANCES 1-800-544-7544
Just make a selection from this record-
ed menu:
PRESS
For balances on funds you own.
1.
For your most recent fund activity
(purchases, redemptions, and
dividends).
2.
To change your Personal
Identification Number (PIN).
3.
To speak with a Fidelity
representative.
4.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD AND
RETURN WILL
VARY AND, EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS
MEANS THAT
YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO
ASSURANCE THAT
MONEY MARKET FUNDS WILL BE ABLE TO MAINTAIN A STABLE $1 SHARE PRICE; AN
INVESTMENT IN
A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.
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
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Michael Gray, Vice President
Arthur S. Loring, Secretary
Stephen P. Jonas, 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
* INDEPENDENT TRUSTEES
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)
AUTOMATED LINES FOR QUICKEST SERVICE

(2_FIDELITY_LOGOS)FIDELITY

SHORT-TERM BOND
PORTFOLIO
ANNUAL REPORT
APRIL 30, 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 11 A summary of major shifts in the
fund's investments over the past six
months.

INVESTMENTS 12 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 22 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 26 Notes to the financial statements.

REPORT OF INDEPENDENT 30 The auditors' opinion.
ACCOUNTANTS

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, THE
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT
RISK,
INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. 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

Short-Term Bond 2.17% 39.09% 73.28%

Lehman Brothers 1-3 Year
Government-Corporate Bond Index 5.78% 42.71% n/a

Average Short Investment Grade Bond Fund 4.78% 41.17% n/a

Consumer Price Index 3.05% 17.84% 38.47%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, 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 124 funds with similar objectives tracked by Lipper
Analytical Services over the past 12 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 APRIL 30, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Short-Term Bond 2.17% 6.82% 6.58%

Lehman Brothers 1-3 Year
Government-Corporate Bond Index 5.78% 7.37% n/a

Average Short Investment Grade Bond Fund 4.78% 7.13% n/a

Consumer Price Index 3.05% 3.34% 3.83%

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 Portf1-3 Year Governm
09/30/86 10000.00 10000.00
10/31/86 10072.04 10089.00
11/30/86 10141.28 10150.54
12/31/86 10172.93 10174.90
01/31/87 10217.55 10247.15
02/28/87 10276.97 10293.26
03/31/87 10278.77 10315.90
04/30/87 10151.53 10243.69
05/31/87 10163.36 10260.08
06/30/87 10278.15 10372.94
07/31/87 10298.83 10429.99
08/31/87 10332.08 10445.64
09/30/87 10267.70 10410.12
10/31/87 10421.06 10616.24
11/30/87 10486.66 10687.37
12/31/87 10576.87 10761.12
01/31/88 10733.38 10923.61
02/29/88 10845.81 11018.64
03/31/88 10845.58 11042.89
04/30/88 10853.15 11057.24
05/31/88 10828.01 11052.82
06/30/88 10940.01 11163.35
07/31/88 10949.14 11171.16
08/31/88 10968.40 11199.09
09/30/88 11070.45 11329.00
10/31/88 11184.45 11443.42
11/30/88 11146.22 11415.96
12/31/88 11180.64 11442.21
01/31/89 11277.04 11533.75
02/28/89 11297.58 11536.06
03/31/89 11332.02 11582.20
04/30/89 11476.36 11769.83
05/31/89 11650.86 11936.97
06/30/89 11846.54 12157.80
07/31/89 11995.07 12338.95
08/31/89 11965.05 12268.62
09/30/89 12014.59 12341.00
10/31/89 12213.08 12533.52
11/30/89 12296.52 12646.32
12/31/89 12356.35 12696.91
01/31/90 12332.48 12709.61
02/28/90 12388.43 12776.97
03/31/90 12434.46 12817.85
04/30/90 12460.85 12849.90
05/31/90 12669.25 13049.07
06/30/90 12760.41 13187.39
07/31/90 12908.39 13346.96
08/31/90 12888.79 13395.01
09/30/90 12911.06 13495.47
10/31/90 12878.98 13634.47
11/30/90 12946.28 13768.09
12/31/90 13070.95 13929.18
01/31/91 13052.87 14055.93
02/28/91 13203.01 14157.14
03/31/91 13460.32 14259.07
04/30/91 13643.91 14398.81
05/31/91 13783.06 14488.08
06/30/91 13833.62 14541.69
07/31/91 13943.78 14669.65
08/31/91 14177.96 14869.16
09/30/91 14324.58 15029.75
10/31/91 14490.56 15192.07
11/30/91 14640.49 15345.51
12/31/91 14904.19 15577.23
01/31/92 14965.37 15561.65
02/29/92 15095.20 15611.45
03/31/92 15198.74 15608.32
04/30/92 15281.39 15750.36
05/31/92 15428.54 15898.41
06/30/92 15572.49 16060.58
07/31/92 15756.97 16248.49
08/31/92 15894.86 16380.10
09/30/92 16026.20 16535.71
10/31/92 15912.81 16436.49
11/30/92 15897.75 16413.48
12/31/92 16005.23 16567.77
01/31/93 16269.08 16745.05
02/28/93 16450.66 16882.35
03/31/93 16552.53 16936.38
04/30/93 16633.84 17043.08
05/31/93 16662.39 17003.88
06/30/93 16843.69 17133.11
07/31/93 16941.17 17172.51
08/31/93 17127.38 17316.76
09/30/93 17190.78 17372.18
10/31/93 17300.59 17412.13
11/30/93 17335.40 17417.36
12/31/93 17466.50 17488.77
01/31/94 17580.29 17600.70
02/28/94 17427.38 17493.33
03/31/94 17095.38 17402.37
04/30/94 16964.22 17336.24
05/31/94 17058.03 17360.51
06/30/94 16900.90 17405.65
07/31/94 17028.10 17564.04
08/31/94 17097.96 17623.75
09/30/94 17125.73 17584.98
10/31/94 17117.15 17625.43
11/30/94 17143.53 17551.40
12/31/94 16751.57 17584.75
01/31/95 16879.46 17825.66
02/28/95 17057.44 18071.65
03/31/95 17165.98 18174.66
04/28/95 17331.74 18338.23

$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 April 30, 1995, the value of your investment would have
grown to $17,332 - a 73.32% 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 $18,338 - an 83.38% 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

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED APRIL 30,

1995 1994 1993 1992 1991

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

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

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

</TABLE>

Dividends per share A 4.38(cents) 26.69(cents) 54.77(cents)

Annualized dividend rate 6.11% 6.18% 6.20%

30-day annualized yield 6.30% - -

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 $8.72 over
the past month, $8.71 over the past six months and $8.84 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

MARKET RECAP
A rally starting in mid-November
1994 helped resuscitate the U.S.
bond market, which had been
reeling from several months of
sharply rising interest rates. For
the 12 months ended April 30,
1995, the Lehman Brothers
Aggregate Bond Index - a broad
measure of U.S. taxable bonds -
had a total return of 6.51%. During
the period, the Federal Reserve
Board raised the federal funds rate
- - the rate banks charge each
other for overnight loans - to
6.00%. From March 1994 through
October 1994, these actions,
combined with a strengthening
economy, sparked inflation fears,
leading to a sharp sell-off in the
bond markets. However, from
November 1994 through April
1995 prices in the taxable bond
market rebounded. Investors
gained confidence that the
economy was beginning to slow -
reducing the risk of inflation - and
that the Fed may have been
nearing the end of its interest-rate
increases. Outside of the U.S.,
interest rates in many foreign
markets moved higher - and
prices lower - through 1994,
before rebounding with the U.S.
market during the first four months
of 1995. While the J.P. Morgan
Emerging Markets Bond Index
was down 1.69% following market
corrections in spring 1994 and
Mexico's devaluation of the peso
in December 1994, bond markets
in the developed world showed
stronger results. A weak U.S.
dollar helped the Salomon
Brothers World Government Bond
Index - which includes U.S.
issues - to post a 15.50% return.
NOTE TO SHAREHOLDERS: On
February 13, 1995, Charles Morrison (right photo) became portfolio manager
of Fidelity Short-Term Bond Portfolio. The following is an interview with
Donald Taylor - who managed the fund during most of the period covered by
this report - with some comments from Charlie Morrison on changes in the
fund, outlook and strategy.
Q. DON, HOW HAS THE FUND PERFORMED?
D.T. For the 12 months ended April 30, 1995, the fund had a total return of
2.17%. During the same period, the average short-term investment grade bond
fund returned 4.78%, according to Lipper Analytical Services, and the
Lehman Brothers 1-3 Year Government-Corporate Bond Index was up 5.78%.
Q. WHAT ACCOUNTED FOR THE FUND'S SUB-PAR PERFORMANCE?
A. The fund's exposure to emerging market debt, especially in Mexico. I was
using diversification as a strategy to try to reduce risk and enhance
returns, because different market sectors or regions tend not to move in
tandem. Given low expectations for the U.S. bond market in early 1994, I
sought opportunities abroad in both developed and emerging markets.
Unfortunately, European bond markets declined, in part because
stronger-than-expected growth fueled inflation fears, and many emerging
markets were hurt by rising rates in the U.S. The situation for the fund
worsened in December, when Mexico unexpectedly devalued the peso in an
attempt to shore up the dwindling foreign currency reserves of its central
bank.
Q. HOW DID THAT AFFECT THE FUND?
A. The fund had less than 10% of its assets in Mexico at the time of the
devaluation. However, that was enough to cause the fund's net asset value
to drop due to peso devaluation as well as the declining market of
dollar-denominated Mexican bonds.
Q. WHY WAS THE FUND INVESTED IN MEXICO?
A. Last year, our research indicated that the country's long-term prospects
were solid. More importantly, the Mexican government had made a commitment
to maintaining a stable peso. With that backdrop, it made sense to explore
opportunities in Mexico, in order to diversify the fund's investments so
that returns could be enhanced.
Q. DID YOU MAINTAIN THE FUND'S INVESTMENTS IN MEXICO AFTER THE DEVALUATION?
A. No. I sought to liquidate the fund's Mexican holdings as quickly as
possible. Unfortunately, I had to do that into the teeth of a very
difficult market. Nevertheless, the fund held no peso-denominated debt as
of February 1, 1995, and held less than 1% in dollar-denominated Mexican
debt at the end of the period.
Q. DID CURRENCIES AFFECT THE FUND?
A. In general, currencies were a negative factor this year. For some
non-dollar bonds, I used currency forward contracts to hedge currency risk.
Some of the currencies I hedged appreciated versus the dollar, causing the
fund to realize losses when the contracts matured. The fund also realized
currency losses from selling some unhedged bonds whose currencies had
weakened versus the dollar. For tax purposes, these currency losses will
cause part of this year's dividend to be treated as a return of capital,
which won't be taxable to the fund's shareholders.
Q. TURNING TO YOU, CHARLIE, WHAT CHANGES HAVE YOU MADE TO THE FUND?
C.M. I've been working to reduce the volatility of the fund. I've done this
in two ways. First, since I believe the current environment for foreign
bonds isn't attractive, I've dropped the fund's foreign position to under
1% of its investments. Because of this reduction, the currency issues Don
mentioned should be less of a factor going forward. Second, I've reduced
the fund's holdings in long-duration corporate positions. Duration is a
measure of the average time required to receive all cash flows - principal
and interest - from a bond. It is also a good indicator of how sensitive a
bond is to movements in interest rates. I also have moved the fund's
duration so that it is in line with the duration of the fund's benchmark
index, the Lehman Brothers 1-3 year Government-Corporate Bond Index.
Overall, my goal will be to generate returns that are better than the
short-term market as a whole, while limiting downside volatility.
Q. WHERE HAVE YOU FOUND OPPORTUNITIES?
A. Given the fact that short-term bonds across most sectors of the market
are relatively rich - or priced too high in light of their historical
levels - I began to position the fund somewhat defensively over the recent
period. I have been focused on upgrading the credit quality of the fund, in
addition to shortening the average maturity of its corporate bond
investments. However, I'm continuing to concentrate a large portion of the
fund's investments in corporate bonds, primarily in higher-quality finance
issues and asset-backed securities - bonds issued by creditors that are
backed by loans or credit payments. I believe these investments continue to
be supported by positive fundamentals - or factors relating to the fiscal
health of an issuer - and technicals - or market environment variables,
such as supply and demand.
Q. YOU'VE ALSO INVESTED IN SOME COMMERCIAL MORTGAGE SECURITIES. WHAT'S
THEIR APPEAL?
A. The portfolio's investments in commercial mortgages consist primarily of
high quality - AA- or AAA-rated - well-structured securities that offer
incremental yield above most other alternatives in the short end of the
market. The commercial mortgage-backed market trades cheaply due to the
fact that it is a relatively new and under-followed market. There are few
firms that have committed the same resources as Fidelity to follow this
market, which offers me a tremendous opportunity to buy attractive
securities.
Q. HOW DO THESE INVESTMENTS FIT INTO THE PORTFOLIO?
A. I look at them as an alternative to investing in corporate bonds. Unlike
investments such as Ginnie Mae mortgage pass-throughs - securities issued
by the Government National Mortgage Association that are backed by the full
faith and credit of the U.S. government - these issues depend on the
underlying economic fundamentals of the businesses that are responsible for
supporting and retiring the mortgages on their properties. An important
benefit of commercial mortgage-backed securities versus corporate bonds is
that commercial mortgage-backed securities are secured obligations - they
are backed by real estate. I have focused my efforts in the commercial
mortgage-backed market primarily on the highest quality, shortest duration
securities. As I have said, these may offer attractive investment
opportunities due to the fact that the market is still relatively new and
currently under-followed.
Q. WHAT'S YOUR OUTLOOK GOING FORWARD?
A. I have positioned the fund relatively defensively, given my view that
many sectors of the market already reflect a great deal of positive news.
However, as I've said, there are opportunities to add value to the fund
through sector weighting and security selection. I'll continue to focus on
commercial mortgage-backed, asset-backed and very short corporate
securities. In addition, I'm maintaining a neutral duration - that is,
matching the fund's benchmark index - given uncertainty over the direction
of interest rates, a result of conflicting economic statistics and unclear
Federal Reserve Board interest rate policy.

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 April 30, 1995,
more than $1.3 billion
MANAGER: Donald Taylor,
1989 - February 1995;
Charles Morrison, starting
February 13, 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 HIS
INVESTMENT APPROACH:
"My approach will center
around trying to provide
consistency and stability of
performance. I plan to focus
less on making active bets on
the direction of interest rates,
and more on looking for areas
where I think I can truly add
value. The way I'll do this is
fourfold: First, there is
security selection using
corporate credit and
mortgage research to uncover
attractive investment
opportunities. Second, I'll
focus on market sector
rotation, deciding when to
focus more of the fund's
investments in different
sectors, such as corporates
or mortgage-backed
securities. Yield curve
positioning is third. This
strategy involves focusing the
fund's investments on
particular parts of the maturity
spectrum. Finally, due to
short-term volatility in the
markets, from time to time
opportunities arise to buy or
sell securities that are
temporarily under-priced or
over-priced. I'll seek to take
advantage of this through
opportunistic trading.
DISTRIBUTIONS
A total of 15.29% of the
dividends distributed during
the fiscal year was derived
from interest on U.S.
Government securities, that
generally is exempt from state
income tax. The fund will
notify shareholders in January
1996 of the applicable
percentage for use in
preparing 1995 income tax
returns.
INVESTMENT CHANGES

QUALITY DIVERSIFICATION AS OF APRIL, 30 1995
(MOODY'S RATINGS) % OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS
6 MONTHS AGO

Aaa 46.8 12.7

Aa 0.2 0.4

A 18.6 15.4

Baa 23.3 22.7

Ba 5.8 5.4

Not Rated 4.9 13.2

TABLE EXCLUDES SHORT-TERM INVESTMENTS. UNRATED DEBT SECURITIES THAT ARE
EQUIVALENT TO BA AND BELOW AT
APRIL 30, 1995 AND OCTOBER 31, 1994 ACCOUNT FOR 0.3% AND 1.6%,
RESPECTIVELY, OF THE FUND'S INVESTMENTS.
AVERAGE YEARS TO MATURITY AS OF APRIL 30, 1995
6 MONTHS AGO

Years 2.3 2.1

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 APRIL 30, 1995
6 MONTHS AGO

Years 1.7 1.2

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 APRIL 30, 1995* AS OF OCTOBER 31, 1994**
Row: 1, Col: 1, Value: 8.199999999999999
Row: 1, Col: 2, Value: 1.4
Row: 1, Col: 3, Value: 0.0
Row: 1, Col: 4, Value: 37.8
Row: 1, Col: 5, Value: 52.6
Corporate bonds 44.8%
U.S. government and
agency obligations 14.1%
Foreign government
obligations 10.4%
Short-term
investments 22.1%
Other investments 8.6%
Corporate bonds 52.6%
U.S. government and
agency obligations 38.8%
Foreign government
obligations 0.0%
Short-term
investments 0.4%
Other investments 8.2%
Row: 1, Col: 1, Value: 8.6
Row: 1, Col: 2, Value: 22.1
Row: 1, Col: 3, Value: 10.4
Row: 1, Col: 4, Value: 14.1
Row: 1, Col: 5, Value: 44.8
* TOTAL FOREIGN
INVESTMENTS 0.1%
** TOTAL FOREIGN
INVESTMENTS 18.1%

INVESTMENTS APRIL 30, 1995

Showing Percentage of Total Value of Investment in Securities

NONCONVERTIBLE BONDS - 52.6%
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
AEROSPACE & DEFENSE - 1.0%
AEROSPACE & DEFENSE - 0.9%
Lockheed Corp. 4 7/8%, 2/15/96 Baa1 $ 12,415 $ 12,237
SHIPBUILDING & REPAIR - 0.1%
Tennessee Gas Pipeline Co. 9 1/4%, 5/15/96 Baa2 1,420 1,451
TOTAL AEROSPACE & DEFENSE 13,688
BASIC INDUSTRIES - 0.5%
PAPER & FOREST PRODUCTS - 0.5%
Boise Cascade Corp. 9 5/8%, 7/15/98
(callable 1995) Baa3 2,060 2,066
Chesapeake Corp. 11 3/4%, 8/1/95 Baa3 4,600 4,675
6,741
ENERGY - 1.4%
ENERGY SERVICES - 1.4%
McDermott International, Inc. 10 1/4%, 6/1/95 Baa3 17,790 17,835
FINANCE - 30.0%
ASSET-BACKED SECURITIES - 9.5%
Caterpillar Financial Asset Trust 6.65%, 6/25/00 A2 4,157 4,118
Chase Manhattan Credit Card Master Trust
8 3/4%, 8/15/99 Aaa 5,160 5,255
Concord Leasing, Inc. (b):
6.66%, 1/15/98 AAA 1,099 1,095
5.04%, 7/15/98 AAA 2,383 2,333
5.31%, 1/20/99 AAA 1,923 1,894
Discover Card Master Trust I 6.90%, 2/16/00 A2 4,030 3,990
Discover Card Trust:
7 7/8%, 4/16/98 A2 1,170 1,178
6 1/8%, 5/15/98 A2 2,100 2,076
General Motors Acceptance Corp. Grantor Trust
1995-A, 7.15%, 3/15/00 Aaa 15,750 15,799
Midlantic Grantor Trust, Class B, 5.15%, 9/15/97 A1 1,304 1,298
Premier Auto Trust:
6.85%, 10/4/97 Aaa 18,500 18,505
4.90%, 12/15/98 Aaa 14,500 14,194
8.05%, 4/4/00 Aaa 11,500 11,836
SCFC Recreational Vehicle Loan Trust 7 1/4%,
9/15/06 Aaa 712 710
NONCONVERTIBLE BONDS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
FINANCE - CONTINUED
ASSET-BACKED SECURITIES - CONTINUED
Standard Credit Card Master Trust:
5 7/8%, 7/7/96 Aaa $ 13,000 $ 12,992
participation certificate, 9%, 8/7/97 A2 4,200 4,304
8 1/4%, 10/7/97 A2 14,370 14,617
1995-4 (B) 7.65%, 2/15/00 A2 1,800 1,818
United Federal Savings Bank Grantor Trust:
1994-B (B) 6.975%, 7/10/00 Baa2 1,758 1,742
7.275%, 11/10/00 Baa2 1,783 1,767
Union Federal Savings 1994-D 8.20%, 1/10/01 Baa2 1,507 1,520
123,041
BANKS - 12.5%
Bank of Boston Corp.:
9 1/2%, 8/15/97 Baa2 2,315 2,433
10.30%, 9/1/00 Baa2 1,250 1,265
Baybanks, Inc. 6 3/8%, 9/30/97 (c) Baa2 8,500 8,426
Chemical Bank Corp. euro 0%, 2/16/97 Baa1 1,000 870
Citicorp:
euro 5.6875%, 7/10/97 (c) A3 1,030 1,025
Person to Person, Inc. 6.3125%, 1/30/97 (c) A3 8,250 8,198
5.70%, 2/12/96 A2 9,000 8,931
Continental Bank Mortgage Corp. 9 7/8%,
6/15/96 A2 4,600 4,727
First Bank Systems, Inc.:
euro 6.3125%, 11/29/96 (c) A3 8,850 8,844
9.89%, 3/6/96 A3 650 667
First Fidelity Bancorporation 9 3/4%, 5/25/95 A3 6,075 6,083
First Interstate Bancorp 10 1/2%, 3/1/96 A2 3,815 3,926
Fleet Financial Group, Inc.:
5 5/8%, 7/1/95 A2 9,250 9,234
7 7/8%, 7/19/96 A2 5,000 5,061
Fleet/Norstar Financial Group, Inc. 7.65%,
3/1/97 A2 5,000 5,048
Keycorp.:
8.55%, 5/30/95 A1 1,300 1,302
8.96%, 5/30/96 A1 2,000 2,044
7.10%, 3/28/97 A1 3,180 3,185
Manufacturers Hanover Trust, euro 6 1/2%,
7/15/97 (c) A3 15,500 15,500
Marine Midland Bank:
euro 6 3/8%, 9/27/96 (c) Baa1 17,750 17,732
8 5/8%, 3/1/97 Baa1 19,567 19,992
NONCONVERTIBLE BONDS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
FINANCE - CONTINUED
BANKS - CONTINUED
Mellon Financial Co.:
6 1/8%, 11/15/95 A2 $ 3,750 $ 3,741
6 1/2%, 12/1/97 A2 1,000 986
Meridian Bancorp, Inc. 6 3/8%, 12/1/96 (c) Baa1 7,450 7,419
National City Corp. 0%, 1/31/97 (c) A2 4,100 4,080
Security Pacific Corp. 10.05%, 5/1/95 A2 3,500 3,500
Shawmut Corp. 8 7/8%, 4/1/96 Baa1 4,325 4,388
TrustCorp, Inc. 11 1/8%, 9/1/95 A1 710 720
U.S. Bancorp 8.40%, 5/31/95 A3 200 200
Wells Fargo and Company euro 6.1875%,
4/28/00 (c) A3 2,000 1,968
161,495
CREDIT & OTHER FINANCE - 6.3%
Aristar, Inc.:
8.55%, 6/1/95 A3 2,590 2,592
7 3/8%, 2/15/97 A3 2,000 2,011
Beneficial Corp. 9 3/8%, 6/2/95 A2 4,400 4,409
Chrysler Financial Corp.:
6%, 4/15/96 A3 15,000 14,853
6 1/2%, 5/27/97 A3 3,000 2,949
10.34%, 5/15/08 A3 3,000 3,093
Ford Motor Credit Co.:
euro 9 5/8%, 2/27/96 A2 3,100 3,185
9%, 6/28/96 A2 950 972
General Motors Acceptance Corp.:
9.40%, 5/18/95 Baa1 3,350 3,354
7 3/4%, 1/17/97 Baa1 6,890 6,966
7.60% 2/10/97 Baa1 1,000 1,009
7 7/8%, 2/27/97 Baa1 4,920 4,984
7.90%, 3/12/97 Baa1 8,070 8,179
Greyhound Financial Corp.:
6.94%, 1/28/98 Baa2 4,000 3,957
6.95%, 1/28/98 Baa2 2,000 1,979
Tenneco Credit Corp. 9%, 7/15/95 Baa2 900 904
Third Mexican Acceptance Corp. coll. notes gtd.
by Grupo Sidek SA and Grupo Situr SA
10 1/2%, 3/15/98 (b) - 5,500 1,650
NONCONVERTIBLE BONDS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
FINANCE - CONTINUED
CREDIT & OTHER FINANCE - CONTINUED
Westinghouse Credit Corp.:
8.79%, 5/22/96 Ba1 $ 12,000 $ 12,140
8.84%, 10/21/96 Ba1 600 612
9.06%, 6/3/98 Ba1 1,000 1,029
80,827
INSURANCE - 0.4%
ITT Hartford Group, Inc. 7 1/4%, 12/1/96 A1 5,700 5,704
SAVINGS & LOANS - 1.3%
Golden West Financial Corp. 10 1/4%, 5/15/97 A3 5,350 5,643
Home Savings of America 10 1/2%, 6/12/97 A3 6,850 7,054
World Savings & Loan 5 1/4%, 2/15/96 A1 5,000 4,958
17,655
TOTAL FINANCE 388,722
HEALTH - 0.4%
MEDICAL EQUIPMENT & SUPPLIES - 0.4%
Cardinal Distribution, Inc. 8%, 3/1/97 Baa1 5,000 5,052
INDUSTRIAL MACHINERY & EQUIPMENT - 0.7%
ELECTRICAL EQUIPMENT - 0.2%
Westinghouse Electric Corp. 7 3/4%, 4/15/96 Ba1 2,000 2,005
INDUSTRIAL MACHINERY & EQUIPMENT - 0.5%
Tenneco Corp. gtd.:
euro 10 3/4%, 6/15/95 Baa2 3,510 3,526
11%, 11/15/95 Baa2 3,400 3,468
6,994
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 8,999
MEDIA & LEISURE - 5.8%
BROADCASTING - 2.0%
Time Warner, Inc. 6.05%, 7/1/95 (b) Ba1 26,000 25,958
LEISURE DURABLES & TOYS - 2.1%
Brunswick Corp. 8 1/8%, 4/1/97 Baa1 11,525 11,588
Mattel, Inc. 6 7/8%, 8/1/97 Baa1 15,150 14,939
26,527
NONCONVERTIBLE BONDS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
MEDIA & LEISURE - CONTINUED
PUBLISHING - 1.7%
News America Holdings, Inc. 12%, 12/15/01 Ba1 $ 19,083 $ 21,471
TOTAL MEDIA & LEISURE 73,956
NONDURABLES - 3.2%
TOBACCO - 3.2%
Philip Morris Companies, Inc.:
9.40%, 10/1/95 A2 7,150 7,223
8 7/8%, 7/1/96 A2 1,990 2,032
9.80%, 12/15/98 A2 5,520 5,623
RJR Nabisco, Inc. 9 1/4%, 5/1/95 Baa3 26,000 26,000
40,878
RETAIL & WHOLESALE - 2.3%
GENERAL MERCHANDISE STORES - 0.8%
Sears Roebuck & Co.:
8.95%, 11/27/96 A2 545 567
9.22%, 1/30/97 A2 3,760 3,906
7 3/4%, 2/27/97 A2 4,890 4,943
7.30%, 6/12/97 A2 545 546
9,962
GROCERY STORES - 1.5%
American Stores Co.:
8.21%, 4/16/97 Baa3 1,000 1,015
8 1/4%, 4/21/98 Baa3 4,700 4,791
8.44%, 4/24/98 Baa3 4,700 4,814
Supervalu, Inc. 5 7/8%, 11/15/95 A3 8,900 8,868
19,488
TOTAL RETAIL & WHOLESALE 29,450
SERVICES - 0.1%
ADVERTISING - 0.1%
Valassis Inserts, Inc. 9 3/8%, 3/15/99 Ba2 1,600 1,640
TECHNOLOGY - 2.1%
COMPUTERS & OFFICE EQUIPMENT - 2.1%
Comdisco, Inc.:
8.95%, 5/15/95 Baa2 2,500 2,501
6.89%, 8/30/96 Baa2 5,490 5,476
9 3/4%, 1/15/97 Baa2 3,900 4,055
NONCONVERTIBLE BONDS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
TECHNOLOGY - CONTINUED
COMPUTERS & OFFICE EQUIPMENT - CONTINUED
Comdisco, Inc. - continued
7 3/4%, 1/29/97 Baa2 $ 4,000 $ 4,029
7.73%, 2/18/97 Baa2 10,950 11,023
27,084
TRANSPORTATION - 1.2%
AIR TRANSPORTATION - 0.8%
AMR Corp.:
9.76%, 1/11/96 Baa3 900 916
7 3/4%, 12/1/97 Baa3 7,520 7,556
9 1/2%, 7/15/98 Baa3 1,280 1,345
9,817
TRUCKING & FREIGHT - 0.4%
Federal Express Corp. 9 3/4%, 5/15/96 Baa2 4,600 4,723
TOTAL TRANSPORTATION 14,540
UTILITIES - 3.9%
ELECTRIC UTILITY - 2.7%
Gulf States Utilities Co. 9.72%, 7/1/98 Ba1 5,550 5,731
Long Island Lighting Co.:
8 3/4%, 5/1/96 Baa3 7,750 7,868
7.30%, 7/15/99 Ba1 5,000 4,724
Public Service Co. of New Hampshire 1st mtg.:
8 7/8%, 5/15/96 Baa3 6,550 6,641
9.17%, 5/15/98 Baa3 3,250 3,369
United Illuminating Co. 7 3/8%, 1/15/98 Baa3 6,550 6,497
34,830
GAS - 1.2%
Florida Gas 7 3/4%, 11/1/97 (b) Baa2 3,570 3,604
Panhandle Eastern Pipe Line Co. 9 7/8%,
10/15/96 Baa2 10,706 10,895
Transcontinental Gas Pipe Line Corp. 9%,
11/15/96 Baa1 1,370 1,408
15,907
TOTAL UTILITIES 50,737
TOTAL NONCONVERTIBLE BONDS
(Cost $692,422) 679,322
U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS - 38.8%
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
U.S. TREASURY OBLIGATIONS - 31.3%
7 1/2%, 2/29/96 Aaa $ 3,200 $ 3,229
7 3/4%, 3/31/96 Aaa 8,800 8,904
4 3/8%, 11/15/96 Aaa 85,000 82,357
6 3/4%, 2/28/97 Aaa 1,600 1,605
8 1/2%, 5/15/97 Aaa 5,100 5,283
5 1/8%, 3/31/98 Aaa 139,365 133,485
6 3/4%, 6/30/99 Aaa 169,910 169,300
TOTAL U.S. TREASURY OBLIGATIONS 404,163
U.S. GOVERNMENT AGENCY OBLIGATIONS - 7.5%
Federal Home Loan Banks 7.59%, 12/23/96 Aaa 8,030 8,139
Federal Home Loan Mortgage Corporation
4.60%, 3/1/99 (callable 1996) Aaa 3,890 3,678
Federal National Mortgage Association:
5.30%, 8/25/98 Aaa 53,735 50,964
4.70%, 9/10/98 (callable 1996) Aaa 6,070 5,645
4.94%, 10/30/98 (callable 1995) Aaa 15,920 14,875
Government Trust Certificates Class 1-C
(assets of Trust guaranteed by U.S. government
through Defense Security Assistance Agency)
9 1/4%, 11/15/01 Aaa 1,750 1,879
State of Israel (guaranteed by U.S. Government
through Agency for International Development):
5 1/4%, 3/15/98 Aaa 2,140 2,049
4 7/8%, 9/15/98 Aaa 4,490 4,207
6%, 2/15/99 Aaa 1,070 1,034
7 3/4%, 11/15/99 Aaa 1,600 1,635
Tennessee Valley Authority 8 1/4%, 11/15/96 Aaa 3,410 3,486
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS 97,591
TOTAL U.S. GOVERNMENT AND
GOVERNMENT AGENCY OBLIGATIONS
(Cost $493,807) 501,754
COLLATERALIZED MORTGAGE OBLIGATIONS - 0.3%
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
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 $ 3,920
Maryland National Bank pass thru Series 1990-1
Class A, 9 1/2%, 10/25/20 Aaa 332 330
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $4,247) 4,250
COMMERCIAL MORTGAGE SECURITIES - 6.3%
CS First Boston Mortgage Securities Corp.
commercial floater Series 1994-CFB1
Class A-1, 6.675%, 1/25/28 (c) Aaa 9,265 9,254
FDIC commercial Series 1994-C1:
Class II-A1, 6.30%, 9/25/25 Aaa 1,310 1,308
Class II-A2, 7.85%, 9/25/25 Aaa 9,495 9,574
Lennar Central Partner LP commercial floater (b)(c):
Series 1994-1 Class B, 7 1/8%, 9/15/01 - 10,631 10,631
Series 1995-1 Class C, 7.55%, 5/15/03 - 2,700 2,657
Nomura Asset Securities Corp. commercial
floater Series 1994-MD-II Class A-6,
7.39%, 7/4/03 (c) - 3,446 3,452
Resolution Trust Corp. commercial:
floater (c):
Series 1992-C3 Class A-2, 6.975%, 8/25/23 Aa2 2,288 2,290
Series 1993-C2 Class A-2, 6.995%, 12/15/04 AAA 4,345 4,375
Series 1994-C1 Class A-3, 6.675%, 6/25/26 AAA 6,812 6,813
Series1994-C1 Class A-4, 7 1/4%, 6/25/26 AAA 2,975 2,962
Series1994-C2 Class A-2, 7 3/4%, 4/25/25 AAA 1,594 1,597
Series1994-C2 Class A-4, 7 1/2%, 4/25/25 AAA 2,924 2,932
Series1994-N2 Class 3, 7 1/2%, 12/15/04 (b) Baa2 6,800 6,796
SC Finance Corp. commercial floater
7.6125%, 8/1/04 (b)(c) - 9,400 9,353
SKW Real Estate LP commercial 6.45%, 4/15/02 (b) AA 3,300 3,298
Structured Asset Securities Corp. commercial
Series 1993-C1 Class A-1, 6.60%, 10/25/24 AA+ 3,320 3,224
TOTAL COMMERCIAL MORTGAGE SECURITIES
(Cost $80,406) 80,516
MUNICIPAL SECURITIES - 1.6%
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
Louisiana Pub. Facs. Auth. Rev. 9.95%, 6/1/96 A3 $ 16,735 $ 17,249
Shreveport Louisiana Water & Sewer Revenue,
taxable refunding 0%, 12/1/96 Aaa 3,500 3,133
TOTAL MUNICIPAL SECURITIES
(Cost $21,216) 20,382
REPURCHASE AGREEMENTS - 0.4%
MATURITY
AMOUNT
(000S)
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.93%, dated
4/28/95 due 5/1/95 $ 5,708 5,705
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $1,297,803) $ 1,291,929
FORWARD FOREIGN CURRENCY CONTRACTS
AMOUNTS IN THOUSANDS SETTLEMENT UNREALIZED
DATE VALUE GAIN/(LOSS)
CONTRACTS TO BUY
5,660 AUD 6/6/95 $ 4,111 $ (147)
963 DEM 6/6/95 696 69
547 GBP 6/5/95 882 22
300,325 JPY 6/5/95 3,592 517
TOTAL CONTRACTS TO BUY
(Payable amount $8,820) $ 9,281 461
THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 0.7%
CONTRACTS TO SELL
5,660 AUD 6/6/95 $ 4,111 194
963 DEM 6/6/95 696 (81)
547 GBP 6/5/95 882 (517)
300,325 JPY 6/5/95 3,592 (28)
TOTAL CONTRACTS TO SELL
(Receivable amount $8,849) $ 9,281 (432)
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 0.7%
$ 29
CURRENCY ABBREVIATIONS
AUD - Australian dollar
GBP - British pound
DEM - German deutsche mark
JPY - Japanese yen
LEGEND
(g) Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
(h) 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 $69,269,000 or 5.3% of net
assets.
(i) 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 (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 65.6% AAA, AA, A 65.2%
Baa 23.3% BBB 27.2%
Ba 5.8% BB 2.6%
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 2.0%.
INCOME TAX INFORMATION
At April 30, 1995, the aggregate cost of investment securities for income
tax purposes was $1,297,817,000. Net unrealized depreciation aggregated
$5,888,000, of which $12,167,000 related to appreciated investment
securities and $18,055,000 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
$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 THOUSANDS (EXCEPT PER-SHARE AMOUNTS) APRIL 30, 1995

ASSETS

Investment in securities, at value (including repurchase $ 1,291,929
agreements of $5,705) (cost $1,297,803) -
See accompanying schedule

Cash 2,794

Receivable for investments sold 1,350

Unrealized appreciation on foreign currency contracts 802

Receivable for closed foreign currency contracts 1

Interest receivable 23,123

Other receivables 167

TOTAL ASSETS 1,320,166

LIABILITIES

Payable for investments purchased $ 12,589

Unrealized depreciation on foreign currency contracts 773

Payable for fund shares redeemed 1,615

Distributions payable 820

Accrued management fee 513

Other payables and accrued expenses 336

TOTAL LIABILITIES 16,646

NET ASSETS $ 1,303,520

Net Assets consist of:

Paid in capital $ 1,466,325

Distributions in excess of net investment income (18,863)

Accumulated undistributed net realized gain (loss) on (138,097)
investments and foreign currency transactions

Net unrealized appreciation (depreciation) on (5,845)
investments and assets and liabilities in foreign
currencies

NET ASSETS, for 149,509 shares outstanding $ 1,303,520

NET ASSET VALUE, offering price and redemption price per $8.72
share ($1,303,520 (divided by) 149,509 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED APRIL 30, 1995

INVESTMENT INCOME $ 118,799
Interest

EXPENSES

Management fee $ 7,676

Transfer agent fees 2,889

Accounting fees and expenses 440

Non-interested trustees' compensation 10

Custodian fees and expenses 465

Registration fees 47

Audit 51

Legal 16

Miscellaneous 23

TOTAL EXPENSES 11,617

NET INVESTMENT INCOME 107,182

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

Investment securities (137,265)

Foreign currency transactions (9,017) (146,282)

Change in net unrealized appreciation (depreciation) on:

Investment securities 64,259

Assets and liabilities in foreign currencies 5,273 69,532

NET GAIN (LOSS) (76,750)

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

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30,
1995 1994

INCREASE (DECREASE) IN NET ASSETS

Operations $ 107,182 $ 149,523
Net investment income

Net realized gain (loss) (146,282) (14,646)

Change in net unrealized appreciation (depreciation) 69,532 (95,992)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 30,432 38,885
FROM OPERATIONS

Distributions to shareholders (81,691) (138,857)
From net investment income

In excess of net investment income - (8,052)

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

TOTAL DISTRIBUTIONS (104,014) (146,909)

Share transactions 686,551 2,498,928
Net proceeds from sales of shares

Reinvestment of distributions 89,372 124,898

Cost of shares redeemed (1,361,013) (2,543,350)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (585,090) 80,476
FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS (658,672) (27,548)

NET ASSETS

Beginning of period 1,962,192 1,989,740

End of period (including distributions in excess $ 1,303,520 $ 1,962,192
of net investment income of $(18,863) and
$(8,733), respectively)

OTHER INFORMATION
Shares

Sold 77,385 263,357

Issued in reinvestment of distributions 10,112 13,198

Redeemed (154,192) (269,588)

Net increase (decrease) (66,695) 6,967

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED APRIL 30,

1995 1994 1993 1992 1991

SELECTED PER-SHARE DATA

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

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

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

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

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

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

Return of capital (.118) - - - -

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

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

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

RATIOS AND SUPPLEMENTAL DATA

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

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

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

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

</TABLE>

A EFFECTIVE MAY 1, 1993, THE FUND BEGAN REFLECTING IN NET INVESTMENT INCOME
PER SHARE CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES IN
ACCORDANCE WITH NEW GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.
NOTES TO FINANCIAL STATEMENTS
For the period ended April 30, 1995

7. 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.
Effective May 1, 1994, the fund adopted Statement of Position (SOP) 93-4:
Foreign Currency Accounting and Financial Statement Presentation for
Investment Companies. In accordance with this SOP, net realized gains and
losses on foreign currency transactions represent net gains and losses from
sales and maturities of forward currency contracts, 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. Further, as
permitted under the SOP, the effects of changes in foreign currency
exchange rates on investments in securities are not segregated in the
Statement of Operations from the effects of changes in market prices of
those securities, but 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 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.
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 pay- down
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.
8. 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. These contracts involve market risk in
excess of the unrealized gain or loss reflected in the fund's Statement of
Assets and Liabilities. The U.S. dollar value of the currencies the fund
has committed to buy or sell is shown in the schedule of investments under
the caption "Forward Foreign Currency Contracts." This amount represents
the aggregate exposure to each currency the fund has acquired or hedged
through currency contracts at period end. Losses may arise from changes in
the value of the foreign currency or if the counterparties do not
2. OPERATING POLICIES - CONTINUED
FORWARD FOREIGN CURRENCY
CONTRACTS - CONTINUED
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. Contracts that
have been offset with different counterparties are reflected as both a
contract to buy and a contract to sell in the schedule of investments under
the caption "Forward Foreign Currency Contracts."
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 securities, whose market value is required to be at least
102% of the resale price at the time of purchase. FMR, the fund's
investment adviser, is responsible for determining that the value of these
underlying securities remains at least equal to the resale price.
9. PURCHASES AND SALES
OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $1,485,054,000 and $1,822,133,000, respectively, of which U.S.
government and government agency obligations aggregated $1,050,047,000 and
$695,141,000, respectively.
10. 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 .1325% to .3700% for the period May 1, 1994 to July 31,
1994 and .1200% to .3700% for the period August 1, 1994 to April 30, 1995.
In the event that these rates were lower than the contractual rates in
effect during those periods, 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 annual rate of .46% of average net assets.
DISTRIBUTION AND SERVICE PLAN. Pursuant to the Distribution and Service
Plan (the Plan), and in accordance with
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
DISTRIBUTION AND SERVICE PLAN - CONTINUED
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 $128,000 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.
During the period May 1, 1994 to December 31, 1994, FSC received fees based
on the type, size, number of accounts and the number of transactions made
by shareholders. Effective January 1, 1995, the Board of Trustees approved
a revised transfer agent contract pursuant to which 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 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.
REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees of Fidelity Fixed-Income Trust and the Shareholders of
Fidelity Short-Term Bond Portfolio:
We have audited the accompanying statement of assets and liabilities of
Fidelity Fixed-Income Trust: Fidelity Short-Term Bond Portfolio, including
the schedule of portfolio investments, as of April 30, 1995, and the
related statement of operations for the year then ended, the statement of
changes in net assets for each of the two years in the period then ended
and the financial highlights for each of the five years in the period then
ended. These financial statements and financial highlights are the
responsibility of the fund's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of April 30, 1995 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating
the overall financial
statement presentation. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Fixed-Income Trust: Fidelity Short-Term Bond Portfolio as of
April 30, 1995, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then
ended, and the financial highlights for each of the five years in the
period then ended, in conformity with generally accepted accounting
principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
June 8, 1995
TO CALL FIDELITY

(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC
(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND QUOTES*
1-800-544-8544
Just make a selection from this record-ed menu:
PRESS
For quotes on funds you own.
1.
For an individual fund quote.
2.
For the ten most frequently
requested Fidelity fund quotes.
3.
For quotes on Fidelity Select
Portfolios(registered trademark).
4.
To change your Personal
Identification Number (PIN).
5.
To speak with a Fidelity
representative.
6.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC
(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND ACCOUNT
BALANCES 1-800-544-7544
Just make a selection from this record-
ed menu:
PRESS
For balances on funds you own.
1.
For your most recent fund activity
(purchases, redemptions, and
dividends).
2.
To change your Personal
Identification Number (PIN).
3.
To speak with a Fidelity
representative.
4.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD AND
RETURN WILL
VARY AND, EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS
MEANS THAT
YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO
ASSURANCE THAT
MONEY MARKET FUNDS WILL BE ABLE TO MAINTAIN A STABLE $1 SHARE PRICE; AN
INVESTMENT IN
A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.
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
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Arthur S. Loring, Secretary
Stephen P. Jonas, 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
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
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 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)

(2_FIDELITY_LOGOS)SPARTAN(registered trademark)

GOVERNMENT INCOME
FUND
ANNUAL REPORT
APRIL 30, 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 15 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 19 Notes to the financial statements.

REPORT OF INDEPENDENT 21 The auditors' opinion.
ACCOUNTANTS

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, THE
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT
RISK,
INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. 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. Each figure
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.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED APRIL 30, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Spartan Government Income 7.31% 50.91% 71.52%

Lehman Brothers Government Bond Index 6.51% 55.76% n/a

Salomon Brothers Treasury/Agency Index 6.50% 55.80% n/a

Average General U.S. Government Bond Fund 5.32% 48.78% n/a

Consumer Price Index 3.05% 17.84% 26.06%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, 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
Lehman Brothers Government Bond Index and the Salomon Brothers
Treasury/Agency Index - both broad measures 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 153 funds with similar objectives
tracked by Lipper Analytical Services over the past 12 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 APRIL 30, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Spartan Government Income 7.31% 8.58% 8.85%

Lehman Brothers Government Bond Index 6.51% 9.27% n/a

Salomon Brothers Treasury/Agency Index 6.50% 9.27% n/a

Average General U.S. Government Bond Fund 5.32% 8.25% n/a

Consumer Price Index 3.05% 3.34% 3.72%

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 GovernmeGovernment Bond
12/31/88 10000.00 10000.00
01/31/89 10175.40 10127.14
02/28/89 10097.77 10044.69
03/31/89 10104.09 10106.16
04/30/89 10313.81 10322.92
05/31/89 10606.34 10566.35
06/30/89 10945.27 10918.90
07/31/89 11196.69 11149.49
08/31/89 10999.20 10961.86
09/30/89 11064.30 11009.01
10/31/89 11349.29 11293.91
11/30/89 11477.31 11403.28
12/31/89 11522.54 11422.54
01/31/90 11374.73 11260.83
02/28/90 11423.41 11283.30
03/31/90 11432.64 11280.83
04/30/90 11290.09 11181.34
05/31/90 11644.07 11493.15
06/30/90 11829.42 11675.10
07/31/90 12017.07 11824.47
08/31/90 11838.33 11659.80
09/30/90 11934.42 11771.63
10/31/90 12100.99 11963.96
11/30/90 12373.82 12229.11
12/31/90 12578.79 12418.22
01/31/91 12724.51 12551.54
02/28/91 12819.09 12623.38
03/31/91 12879.74 12687.57
04/30/91 13014.50 12826.81
05/31/91 13078.93 12876.68
06/30/91 13080.97 12858.41
07/31/91 13251.78 13010.99
08/31/91 13535.40 13312.68
09/30/91 13808.89 13591.90
10/31/91 13957.31 13710.90
11/30/91 14056.63 13848.41
12/31/91 14478.80 14320.21
01/31/92 14300.44 14097.27
02/29/92 14396.78 14152.33
03/31/92 14350.80 14069.62
04/30/92 14452.94 14158.25
05/31/92 14693.76 14419.45
06/30/92 14881.81 14626.10
07/31/92 15120.92 14994.69
08/31/92 15198.56 15134.43
09/30/92 15326.05 15348.48
10/31/92 15148.12 15127.02
11/30/92 15271.77 15100.85
12/31/92 15509.68 15355.14
01/31/93 15678.93 15681.27
02/28/93 15894.54 15995.31
03/31/93 15936.86 16048.88
04/30/93 16060.21 16172.32
05/31/93 16126.32 16154.55
06/30/93 16393.84 16513.02
07/31/93 16488.93 16613.75
08/31/93 16709.99 16984.57
09/30/93 16688.52 17049.50
10/31/93 16720.05 17113.94
11/30/93 16522.77 16926.31
12/31/93 16648.04 16991.73
01/31/94 16896.90 17224.29
02/28/94 16548.51 16859.65
03/31/94 16104.32 16480.43
04/30/94 15876.72 16350.82
05/31/94 15892.04 16329.84
06/30/94 15850.88 16292.31
07/31/94 16166.61 16591.78
08/31/94 16192.41 16594.99
09/30/94 15955.73 16361.19
10/31/94 15947.78 16348.85
11/30/94 15923.80 16318.97
12/31/94 16050.98 16418.22
01/31/95 16365.69 16723.86
02/28/95 16727.36 17083.82
03/31/95 16810.08 17190.96
04/28/95 17039.29 17415.63
$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 April 30, 1995, the value of your
investment would have grown to $17,039 - a 70.39% increase on your initial
investment. This assumes you still owned the fund on April 30, 1995, and
therefore does not include the effect of the $5 account closeout fee. 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 $17,433 - a 74.33% increase. Beginning with this report
the fund will compare its performance to the Salomon Brothers
Treasury/Agency Index rather than the Lehman Brothers Government Bond
Index. Although the difference in performance between the indexes is small,
the Salomon Brothers Treasury/Agency Index includes fewer securities and is
more straightforward to monitor on a daily basis. For comparison purposes,
both indexes are shown on Performance: The Bottom Line, Page 4.
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,

1995 1994 1993 1992 1991

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

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

Total return 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 APRIL 30, 1995 PAST PAST 6 PAST
MONTH MONTHS YEAR

Dividends per share 5.46(cents) 41.87(cents) 74.46(cents)

Annualized dividend rate 6.68% 8.66% 7.58%

30-day annualized yield 6.51% - -

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 $9.94 over
the past month, $9.75 over the past six months and $9.82 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

FUND FACTS
GOAL: high current income
by investing mainly in
securities of any maturity
issued or guaranteed by the
U.S. government and its
agencies
START DATE: December 20,
1988
SIZE: as of April 30, 1995,
more than $239 million
MANAGER: Robert Ives, since
1993; manager, Fidelity
Advisor Government
Investment and Fidelity
Advisor Annuity Government
Investment, and Fidelity
Government Securities funds
since February 1995; Fidelity
Mortgage Securities
Portfolio, January 1993 -
August 1993; Fidelity Ginnie
Mae Portfolio, 1993 -
February 1995; Spartan
Ginnie Mae Fund, 1993 -
February 1995; joined Fidelity
in 1991
(checkmark)
ROBERT IVES ON HIS INVESTMENT
PHILOSOPHY:
"I generally don't position the
fund to take advantage of
rising or falling interest rates.
Instead, I keep the fund's
duration - a measure of how
sensitive the fund's share
price is to changes in interest
rates - in line with the bond
market in general. In my view,
finding sectors - and
individual issues within those
sectors - that offer the best
value is the most prudent way
to achieve total return. With
this strategy I try to buy
securities when they are
inexpensive - based on what
I believe to be their actual
value - before the market
comes to the same
conclusion. I look for
opportunities with good
risk/reward trade-offs -
those situations where I feel
there is a combination of low
risk and higher potential for
gain. I also seek to diversify
my investments, so that the
fund's performance is not
overly dependent on the
performance of a particular
type or class of security."
DISTRIBUTIONS
A total of 39.02% of the
dividends distributed during
the fiscal year was derived
from interest on U.S.
government securities that is
generally exempt from state
income tax.
The fund will notify
shareholders in January 1996
of the applicable percentage
for use in preparing 1995
income tax returns.
INVESTMENT CHANGES

COUPON DISTRIBUTION AS OF APRIL 30, 1995
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS
6 MONTHS AGO

Under 6 % 19.5 0.4

6 - 6.99% 8.8 15.8

7 - 7.99% 8.3 19.6

8 - 8.99% 29.8 19.6

9 - 9.99% 22.1 16.3

10 - 10.99% 2.0 6.9

11 - 11.99% 1.5 1.3

12 - 12.99% 5.4 13.5

13% and over 0.5 0.5

Zero Coupon Bonds 0.2 3.5

COUPON DISTRIBUTION SHOWS THE RANGE OF STATED INTEREST RATES ON THE FUND'S
INVESTMENTS, EXCLUDING REPURCHASE AGREEMENTS.
AVERAGE YEARS TO MATURITY AS OF APRIL 30, 1995
6 MONTHS AGO

Years 9.3 10.3

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 APRIL 30, 1995
6 MONTHS AGO

Years 4.7 5.3

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 APRIL 30, 1995 AS OF OCTOBER 31, 1994
Row: 1, Col: 1, Value: 1.9
Row: 1, Col: 2, Value: 14.9
Row: 1, Col: 3, Value: 64.3
Row: 1, Col: 4, Value: 18.9
Mortgage-backed
securities 35.9%**
U.S. government
and government
agency
obligations 48.2%
CMO's and other
mortgage related
securities 13.3%
Other 2.6%
GNMA SECURITIES 12.4%
Mortgage-backed
securities 18.9%*
U.S. government
and government
agency
obligations 64.3%
CMO's and other
mortgage related
securities 14.9%
Other 1.9%
GNMA SECURITIES 1.1%
Row: 1, Col: 1, Value: 2.6
Row: 1, Col: 2, Value: 13.3
Row: 1, Col: 3, Value: 48.2
Row: 1, Col: 4, Value: 35.9
*
**
INVESTMENTS APRIL 30, 1995

Showing Percentage of Total Value of Investment in Securities

U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS - 64.3%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
U.S. TREASURY OBLIGATIONS - 46.8%
8%, 10/15/96 $ 16,607,000 $ 16,952,093
4 3/8%, 11/15/96 18,240,000 17,672,918
7 1/4%, 11/30/96 6,285,000 6,350,804
5 3/8%, 5/31/98 7,100,000 6,827,076
6 1/4%, 2/15/03 830,000 790,318
9%, 11/15/18 23,470,000 27,390,194
8 7/8%, 2/15/19 15,000,000 17,310,900
8 1/8%, 8/15/19 6,505,000 6,965,424
12%, 8/15/23 7,200,000 10,013,616
110,273,343
U.S. GOVERNMENT AGENCY OBLIGATIONS - 17.5%
Federal Home Loan Bank:
7.59%, 12/23/96 270,000 273,670
4.55%, 8/3/98 (callable) 2,500,000 2,364,000
5.92%, 3/18/99 450,000 433,476
Federal Home Loan Mortgage Corp. 6.47%, 7/7/97 430,000 426,842
Federal National Mortgage Association:
5.24%, 7/15/98 4,870,000 4,617,369
4.70%, 9/10/98 590,000 548,654
4.94%, 10/30/98 600,000 560,625
0%, 11/30/99 606,000 438,435
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 2,825,000 3,032,553
Class T-2, 9 5/8%, 5/15/02 2,330,000 2,517,868
Government Trust Certificates, (assets of Trust guaranteed by
U.S. Government through Export-Import Bank):
Series 1992-A, 7.02%, 9/1/04 845,500 838,292
Series 1994-F, 8.178%, 12/15/04 13,810,673 14,254,189
Private Export Funding Corp. 5.65%, 3/15/03 280,000 264,765
State of Israel (guaranteed by U.S. Government through
Agency for International Development)
4 7/8%, 9/15/98 1,060,000 993,088
8%, 11/15/01 6,000,000 6,220,440
6 1/8%, 3/15/03 1,200,000 1,116,750
8 1/2%, 4/1/06 780,000 828,750
Student Loan Marketing Association 8.14%, 10/15/03 650,000 678,361
U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
U.S. GOVERNMENT AGENCY OBLIGATIONS - CONTINUED
Tennessee Valley Authority 8 1/4%, 11/15/96 $ 570,000 $ 582,648
Twelve Federal Land Banks 7.95%, 10/21/96 290,000 295,075
41,285,850
TOTAL U.S. GOVERNMENT AND
GOVERNMENT AGENCY OBLIGATIONS
(Cost $149,953,369) 151,559,193
U.S. GOVERNMENT AGENCY - MORTGAGE-BACKED SECURITIES - 18.9%
FEDERAL HOME LOAN MORTGAGE CORPORATION - 13.5%
6 1/2%, 5/1/08 1,157,296 1,109,188
7 1/2%, 6/1/07 892,776 881,385
8%, 2/1/17 to 3/1/17 1,536,674 1,528,944
8 1/2%, 7/1/08 to 11/1/19 2,481,446 2,523,972
9%, 8/1/08 to 4/1/20 2,484,929 2,564,169
9 1/2%, 6/1/09 to 8/1/24 14,719,735 15,294,224
10%, 3/1/10 to 8/1/21 4,338,165 4,649,154
10 1/2%, 10/1/15 to 1/1/16 146,169 156,687
12%, 9/1/03 to 12/1/15 243,275 264,393
12 1/4%, 3/1/11 to 11/1/15 679,274 736,835
12 1/2%, 2/1/14 to 6/1/19 1,330,808 1,471,196
13%, 12/1/97 to 6/1/16 532,983 591,356
13 1/2%, 10/1/11 1,175 1,323
31,772,826
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 4.3%
6 1/2%, 1/1/24 960 887
7%, 11/1/06 568,431 554,954
7.778%, 7/1/01 5,000,000 5,075,000
8 1/4%, 12/1/01 1,994,737 2,062,059
11%, 8/1/10 1,096,596 1,189,104
11 1/4%, 5/1/14 489,152 529,566
12 1/2%, 3/1/16 156,323 173,518
13%, 9/1/13 100,873 112,978
13 1/2%, 5/1/11 to 11/1/14 317,216 356,868
10,054,934
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 1.1%
7 1/2%, 3/15/17 to 6/15/23 941,864 930,617
8 1/2%, 1/15/06 to 7/15/08 261,824 272,539
9 1/2%, 6/15/09 to 11/15/09 1,167,550 1,239,031
U.S. GOVERNMENT AGENCY - MORTGAGE-BACKED SECURITIES - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - CONTINUED
10%, 1/15/16 $ 5,851 $ 6,320
11%, 4/15/13 to 6/15/13 73,919 81,495
11 1/2%, 4/15/10 to 4/15/13 97,597 108,576
13 1/2%, 7/15/11 96,286 109,044
2,747,622
TOTAL U.S. GOVERNMENT AGENCY -
MORTGAGE-BACKED SECURITIES
(Cost $44,606,556) 44,575,382
COLLATERALIZED MORTGAGE OBLIGATIONS - 13.1%
PRIVATE SPONSOR - 0.2%
DLJ Acceptance Trust planned amortization class,
Series 1989, Class 1-F, 11%, 8/1/19 416,415 448,426
U.S. GOVERNMENT AGENCY - 12.9%
Federal Home Loan Mortgage Corporation:
planned amortization class:
Series 1417-C, 5 3/8%, 6/15/01 1,250,000 1,227,539
Series 1485-C, 5%, 9/15/01 1,800,000 1,737,844
Series 1475-D, 5.85%, 10/15/02 2,000,000 1,931,875
Series 1515-D, 6%, 9/15/05 4,000,000 3,795,625
Series 1380-K, 6 3/4%, 10/15/07 2,500,000 2,378,125
sequential pay Series 1353 Class A, 5 1/2%, 11/15/04 202,095 193,000
Federal National Mortgage Association:
planned amortization class:
Series 1992, Class 155-D, 6.20%, 11/25/01 500,000 486,328
Series 1992, Class 193-D, 5 3/4%, 12/25/01 3,900,000 3,753,750
Series 1992, Class 151-E, 6%, 5/25/04 6,155,000 5,919,379
Series 1993, Class 18-PC, 5 1/2%, 3/25/01 2,065,000 2,023,377
Series 1993-28, Class PD, 5 1/4%, 10/25/01 1,000,000 970,000
Z Bond Series 1987-2, 11%, 11/25/17 1,126,336 1,223,834
U.S. Department of Veteran's Affairs Vendee Mortgage Trust
sequential pay Series 1993-3, Class 2-E, 6%, 11/15/16 5,500,000 4,713,672
30,354,348
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $30,827,564) 30,802,774
COMMERCIAL MORTGAGE SECURITIES - 1.8%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
Federal National Mortgage Association commercial
Series 1994-M3, Class A, 7.71%, 4/1/06
(Cost $4,201,485) $ 4,272,244 $ 4,310,293
REPURCHASE AGREEMENTS - 1.9%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.93%, dated
4/28/95 due 5/1/95 $ 4,459,203 4,457,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $234,045,974) $ 235,704,642
INCOME TAX INFORMATION
At April 30, 1995, the aggregate cost of investment securities for income
tax purposes was $234,326,783. Net unrealized appreciation aggregated
$1,377,859, of which $2,820,397 related to appreciated investment
securities and $1,442,538 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
$5,411,453 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 APRIL 30, 1995

ASSETS

Investment in securities, at value (including repurchase $ 235,704,642
agreements of $4,457,000) (cost $234,045,974) -
See accompanying schedule

Cash 851

Receivable for investments sold 474,069

Interest receivable 4,113,181

TOTAL ASSETS 240,292,743

LIABILITIES

Payable for fund shares redeemed $ 55,927

Distributions payable 207,990

Accrued management fee 129,730

TOTAL LIABILITIES 393,647

NET ASSETS $ 239,899,096

Net Assets consist of:

Paid in capital $ 258,371,102

Distributions in excess of net investment income (1,315,256)

Accumulated undistributed net realized gain (loss) on (18,815,418)
investments

Net unrealized appreciation (depreciation) on 1,658,668
investments

NET ASSETS, for 24,120,697 shares outstanding $ 239,899,096

NET ASSET VALUE, offering price and redemption price per $9.95
share ($239,899,096 (divided by) 24,120,697 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED APRIL 30, 1995

INVESTMENT INCOME $ 20,153,570
Interest

EXPENSES

Management fee $ 1,638,449

Non-interested trustees' compensation 1,265

TOTAL EXPENSES 1,639,714

NET INVESTMENT INCOME 18,513,856

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

Investment securities (12,943,294)

Futures contracts (79,969) (13,023,263)

Change in net unrealized appreciation (depreciation) on:

Investment securities 11,319,515

Delayed delivery commitments (175,910) 11,143,605

NET GAIN (LOSS) (1,879,658)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 16,634,198
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30,
1995 1994

INCREASE (DECREASE) IN NET ASSETS

Operations $ 18,513,856 $ 26,977,562
Net investment income

Net realized gain (loss) (13,023,263) (6,693,220)

Change in net unrealized appreciation (depreciation) 11,143,605 (18,819,747)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 16,634,198 1,464,595
FROM OPERATIONS

Distributions to shareholders (17,802,636) (21,081,236)
From net investment income

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

From net realized gain - (3,856,086)

In excess of net realized gain - (6,127,536)

TOTAL DISTRIBUTIONS (18,959,510) (31,064,858)

Share transactions 36,150,573 76,411,385
Net proceeds from sales of shares

Reinvestment of distributions 15,816,845 26,884,876

Cost of shares redeemed (96,396,776) (244,767,610)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (44,429,358) (141,471,349)
FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS (46,754,670) (171,071,612)

NET ASSETS

Beginning of period 286,653,766 457,725,378

End of period (including under (over) distribution of net $ 239,899,096 $ 286,653,766
investment income of $(1,315,256) and $1,429,535,
respectively)

OTHER INFORMATION
Shares

Sold 3,685,770 7,048,083

Issued in reinvestment of distributions 1,612,595 2,500,119

Redeemed (9,835,808) (22,782,018)

Net increase (decrease) (4,537,443) (13,233,816)

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED APRIL 30,

1995 1994 1993 1992 1991

SELECTED PER-SHARE DATA

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

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

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

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

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

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

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

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

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

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

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

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period $ 240 $ 287 $ 458 $ 483 $ 430
(in millions)

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

Ratio of expenses to average net .65 .65 .65 .65 .65
assets before expense % % % % %
reductions

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

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

</TABLE>

A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE.
C 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.
NOTES TO FINANCIAL STATEMENTS
For the period ended April 30, 1995

11. 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 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.
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.
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.
12. OPERATING POLICIES.
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 securities, whose market value is required to be at least
102% of the resale price at the time of purchase. FMR, the fund's
investment adviser, is responsible for determining that the value of these
underlying securities remains at least equal to the resale price.
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. 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.
13. PURCHASES AND SALES
OF INVESTMENTS.
Purchases and sales of long-term U.S. government and government agency
obligations aggregated $734,429,175 and $774,722,763, respectively.
The market value of futures contracts opened and closed during the period
amounted to $7,426,109 and $7,346,141, respectively.
14. 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
$9,480 for the period.
REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees of Fidelity Fixed-Income Trust and the Shareholders of
Spartan Government Income Fund:
We have audited the accompanying statement of assets and liabilities of
Fidelity Fixed-Income Trust: Spartan Government Income Fund, including the
schedule of portfolio investments, as of April 30, 1995, and the related
statement of operations for the year then ended, the statement of changes
in net assets for each of the two years in the period then ended and the
financial highlights for each of the five years in the period then ended.
These financial statements and financial highlights are the responsibility
of the fund's management. Our responsibility is to express an opinion on
these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of April 30, 1995 by correspondence with the custodian
and brokers. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Fixed-Income Trust: Spartan Government Income Fund as of April
30, 1995, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then
ended, and the financial highlights for each of the five years in the
period then ended, in conformity with generally accepted accounting
principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
June 8, 1995
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
you written confirmation upon completion of your request.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
100 Crosby Parkway - KP2C
Covington, KY 41015-4399
SELLING SHARES
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Fidelity Investments
P.O. Box 30281
Salt Lake City, UT 84130-0281
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions
World Trade Center
164 Northern Avenue
Boston, MA 02210
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
INVESTMENT ADVISER
Fidelity Management & Research
Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Arthur S. Loring, Secretary
Stephen P. Jonas, 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

HIGH INCOME
FUND
ANNUAL REPORT
APRIL 30, 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 22 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 26 Notes to the financial statements.

REPORT OF INDEPENDENT 30 The auditors' opinion.
ACCOUNTANTS

DISTRIBUTIONS 31

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, THE
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT
RISK,
INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. 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. Each figure
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 APRIL 30, 1995 PAST 1 LIFE OF
YEAR FUND

Spartan High Income 11.07% 119.10%

Merrill Lynch High Yield Master Index 10.57% n/a

Average High Yield Fund 5.54% n/a

Consumer Price Index 3.05% 15.43%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one year 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 99 funds with similar objectives tracked by Lipper
Analytical Services over the past 12 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 APRIL 30, 1995 PAST 1 LIFE OF
YEAR FUND

Spartan High Income 11.07% 18.27%

Merrill Lynch High Yield Master Index 10.57% n/a

Average High Yield Fund 5.54% n/a

Consumer Price Index 3.05% 3.12%

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 High InHigh Yield Master
08/31/90 10000.00 10000.00
09/30/90 9666.58 9565.08
10/31/90 9488.97 9321.68
11/30/90 9712.91 9400.64
12/31/90 9879.66 9536.10
01/31/91 10039.05 9670.90
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 11899.81 11502.87
07/31/91 12288.56 11778.49
08/31/91 12387.49 12026.05
09/30/91 12558.12 12179.23
10/31/91 13022.90 12541.14
11/30/91 13174.26 12686.00
12/31/91 13272.68 12833.38
01/31/92 13875.84 13282.07
02/29/92 14386.68 13611.94
03/31/92 14757.51 13801.86
04/30/92 14868.94 13902.32
05/31/92 15045.73 14124.07
06/30/92 15268.46 14299.56
07/31/92 15561.56 14589.28
08/31/92 15833.91 14782.43
09/30/92 16003.58 14950.86
10/31/92 15772.91 14762.03
11/30/92 15906.16 14971.10
12/31/92 16126.52 15163.87
01/31/93 16524.61 15537.26
02/28/93 16871.10 15831.36
03/31/93 17288.89 16105.83
04/30/93 17390.22 16221.43
05/31/93 17600.84 16439.79
06/30/93 18208.26 16748.66
07/31/93 18446.38 16928.68
08/31/93 18600.85 17090.06
09/30/93 18663.16 17174.39
10/31/93 19072.16 17497.91
11/30/93 19362.08 17593.61
12/31/93 19652.41 17769.53
01/31/94 20316.94 18158.95
02/28/94 20313.38 18028.36
03/31/94 19820.43 17440.87
04/30/94 19599.27 17237.06
05/31/94 19680.10 17175.65
06/30/94 19676.53 17554.18
07/31/94 19699.47 17677.55
08/31/94 19701.68 17800.38
09/30/94 19858.40 17793.59
10/31/94 19970.31 17838.82
11/30/94 19906.80 17687.07
12/31/94 20282.57 17562.60
01/31/95 20422.36 17810.77
02/28/95 20905.93 18366.48
03/31/95 21226.78 18622.08
04/28/95 21764.84 19058.09

$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 April 30, 1995, the value of your investment would have
grown to $21,770 - a 117.70% increase on your initial investment. This
assumes you still own the fund on April 30, 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
$19,048 - a 90.48% 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
(COMMENCEMENT
OF
OPERATIONS)
TO APRIL 30,

1995 1994 1993 1992 1991

Dividend return 9.46% 8.94% 10.88% 14.44% 8.93%

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

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

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 APRIL 30, 1995 PAST PAST 6 PAST
MONTH MONTHS YEAR

Dividends per share 7.09(cents) 48.81(cents) 103.58(cents)

Annualized dividend rate 7.26% 8.51% 8.94%

30-day annualized yield 8.51% - -

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 $11.88 over
the past month, $11.57 over the past six months, $11.58 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

MARKET RECAP
A late 1994 and early 1995 rally
sparked by diminished fears of
sharp interest rate increases helped
generate positive total returns for
high-yield bond investors for the 12
months ended April 30, 1995. The
Merrill Lynch High Yield Master
Index had a total return of 10.57%
for the period. High yield issues
outpaced those in most other U.S.
bond markets. The Lehman
Brothers Aggregate Bond Index -
a broader measure of the
performance of taxable bonds in
the U.S. - returned 6.51% during
the same period. The Federal
Reserve Board, concerned that an
improving economy might trigger
higher inflation, raised the fed funds
rate - the rate banks charge each
other for over- night loans - to
6.00% through February 1995.
Through much of 1994, these hikes
ignited heavy selling in all sectors
of the bond market. However,
indications of an economic
slowdown and muted inflation
pushed yields on benchmark
Treasury issues down during the
first four months of 1995. As a
result, bond prices rebounded.
Continued strong earnings reports
also have had a positive effect on
credit quality enhancement in the
high-yield market. In addition, the
forces of supply and demand have
spurred bond prices in the high-yield
market higher. While there has
been a limited supply of new
high-yield issues, demand has
increased, sparked in part by the
return of investors to U.S. markets
on the heels of Mexico's
December 1994 devaluation of the
peso.
An interview with David Glancy, Portfolio Manager of Spartan High Income
Fund
Q. DAVID, HOW HAS THE FUND PERFORMED?
A. For the 12 months ended April 30, 1995, the fund had a total return of
11.07%. That beat the average high-yield fund, which returned 5.54% for the
same period, as tracked by Lipper Analytical Services.
Q. WHAT LED TO SUCH STRONG PERFORMANCE FOR THE FUND?
A. The fund is fairly concentrated in several large positions, many of
which performed well during the period. For instance, I bought Revlon early
last year for about 40 cents on the dollar; by the end of October it traded
at about 55 cents on the dollar; by April of this year, it had risen to
about 64 cents on the dollar. Harrah's Jazz, the fund's second largest
holding at the end of the period, also appreciated and helped performance.
As usual, the high-yield market experienced its share of disappointments
and I avoided most of those, which was another positive.
Q. WHAT OTHER FACTORS HELPED?
A. I kept a fair amount of the fund in cash and other short-term
investments during most of 1994. Last year, interest rates rose and all
bond prices - including high-yield bond prices - fell. Having an
above-average level of cash and short-term investments helped cushion some
of the price volatility in the market. Toward the end of 1994, cash and
short-term investments were a safe haven from the bond market's decline and
I wanted to make sure that if the fund were to experience significant
redemptions - which it didn't - I wouldn't be forced to sell securities in
the fund. In fact, the opposite happened and money has come into the fund
recently.
Q. EVEN THOUGH THE BOND MARKET HAS IMPROVED DRAMATICALLY SO FAR THIS YEAR,
CASH AND SHORT-TERM INVESTMENTS CONTINUED TO GROW TO 30.8% OF ASSETS AT THE
END OF APRIL. HOW DOES THIS FIT INTO YOUR STRATEGY NOW?
A. Late last year and early this year, many of the fund's largest holdings
appreciated to the point where I thought they were at full value. So I sold
some of those positions. While I'd like to put some of that cash to work,
I'm not seeing the types of opportunities I normally like.
Q. WHY NOT?
A. The supply of high-yielding issues is quite low, and demand is strong.
There hasn't been a lot of new issuance so far in 1995 because companies
are turning to banks and the equity market, rather than the bond market,
for financing. That adds up to very little supply. What supply there is,
isn't that attractive in my view. I haven't seen a lot of bonds that I
think adequately compensate the investor for the risk they carry. So, I've
taken a more patient, disciplined approach, keeping cash and short-term
investments on hand and adding to existing holdings.
Q. WHICH OF THE FUND'S CURRENT HOLDINGS DO YOU THINK REMAIN UNDERVALUED?
A. In my opinion, many of the fund's largest positions have the potential
to do quite well. One example is Mesa Capital Corp., which was the fund's
third largest holding at 4.3% of total investments at the end of the
period. The company announced plans to reduce its debt by selling some
assets. If that happens as planned, the bonds could be called - or redeemed
- - at about 100 cents on the dollar. I bought many of these issues when they
were trading at about 83 cents on the dollar. American Premier, one of the
nation's leading property and casualty insurers, is another security that I
believe holds hidden value. In my view, investors haven't taken into
account the company's stake in non-related businesses and the positive
effects of its impending merger with another insurer.
Q. IN HINDSIGHT, DO YOU HAVE
ANY REGRETS?
A. In the first four months of 1995, I probably positioned the fund too
conservatively with a fair amount of cash to fully participate in the bond
market rally.
Q. WHAT IS YOUR GAME PLAN FOR THE FUND GOING FORWARD?
A. If the market turns, which I believe it eventually will, I would like to
have enough cash on hand to buy the things I like, hopefully at lower
prices than they are today. But until market conditions change, I'll most
likely continue to keep a fair amount of cash and short-term investments on
hand, and concentrate on pursuing attractive opportunities and attempting
to avoid credit mistakes.

FUND FACTS
GOAL: high current income by
investing mainly in
high-yielding debt securities
with an emphasis on
lower-quality securities
START DATE: August 29, 1990
SIZE: as of April 30, 1994
more than $809 million
MANAGER: David Glancy,
since April 1993; joined
Fidelity in 1990
(checkmark)
DAVID GLANCY ON BUSINESS AND
INTEREST RATE RISK:
"With a high-yield bond,
investors generally are
compensated with a relatively
high yield for taking a
significant business risk, or
the risk that the underlying
company will not be able to
pay the bond's principal or
interest on time. Given that, I
don't think it's wise to take on
too much interest rate risk as
well.
"Interest rates are as low as
they have been since the junk
bond market was created and
spreads are tight. Exposure to
loss from interest rate
increases and spread
widening is high. So, I've tried
to concentrate in low-duration
positions, or those that are
less sensitive to changing
interest rates, where I'm
comfortable with the business
risks."
(solid bullet) Of the fund's total
investments, 30.8% was in
cash and other short-term
investments, while 67.4% was
invested in convertible and
non-convertible corporate
bonds and preferred and
common stocks at the end of
the period.
INVESTMENT CHANGES

TOP FIVE HOLDINGS AS OF APRIL 30, 1995
(BY ISSUER, EXCLUDING REPURCHASE % OF FUND'S % OF FUND'S
AGREEMENTS) INVESTMENTS INVESTMENTS
IN THESE HOLDINGS
6 MONTHS AGO

American Financial Corp. 6.0 1.2

Harrah's Jazz Co. 4.8 0.0

Mesa Capital Corp. 4.3 0.0

American Premier Group, Inc. 3.3 0.4

TransTexas Gas Corp. 3.2 0.0

TOP FIVE MARKET SECTORS AS OF APRIL 30, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE MARKET SECTORS
6 MONTHS AGO

Media & Leisure 23.5 37.2

Finance 15.8 6.6

Energy 7.7 1.6

Nondurables 5.6 11.9

Retail & Wholesale 4.2 4.6

QUALITY DIVERSIFICATION AS OF APRIL 30, 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 4.4 1.4

B 17.6 35.7

Caa, Ca, C 11.5 7.7

Nonrated 18.7 30.1

UNRATED DEBT SECURITIES THAT ARE EQUIVALENT TO BA AND BELOW AT APRIL 30,
1995 AND OCTOBER 31, 1994 ACCOUNT FOR 18.7% AND 30.1% OF THE FUND'S
INVESTMENTS, RESPECTIVELY.
ASSET ALLOCATION
AS OF APRIL 30, 1995 AS OF OCTOBER 31, 1994
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
Row: 1, Col: 1, Value: 4.8
Row: 1, Col: 2, Value: 12.5
Row: 1, Col: 3, Value: 7.0
Row: 1, Col: 4, Value: 6.6
Row: 1, Col: 5, Value: 69.09999999999999
Nonconvertible
bonds 51.1%
Convertible bonds,
preferred stock 4.9%
Common stock 11.4%
Short-term
investments 30.8%
Other 1.8%
Nonconvertible
bonds 69.1%
Convertible bonds,
preferred stock 6.6%
Common stock 7.0%
Short-term
investments 12.5%
Other 4.8%
INVESTMENTS APRIL 30, 1995

Showing Percentage of Total Value of Investment in Securities

CORPORATE BONDS - 51.5%
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
CONVERTIBLE BONDS - 0.4%
INDUSTRIAL MACHINERY & EQUIPMENT - 0.1%
ELECTRICAL EQUIPMENT - 0.1%
Ampex Corp. Series C, 0%, 6/30/97 - $ 805,000 $ 470,120
MEDIA & LEISURE - 0.3%
LODGING & GAMING - 0.3%
Bally Entertainment Corp. 10%,12/15/06 Caa 2,840,000 2,428,202
TOTAL CONVERTIBLE BONDS 2,898,322
NONCONVERTIBLE BONDS - 51.1%
AEROSPACE & DEFENSE - 0.5%
Rohr, Inc. 11 5/8%, 5/15/03 Ba3 3,920,000 4,076,800
BASIC INDUSTRIES - 0.3%
CHEMICALS & PLASTICS - 0.3%
American Pacific Corp. 11%, 12/15/02 (f) - 2,300,000 2,185,000
CONSTRUCTION & REAL ESTATE - 1.2%
BUILDING MATERIALS - 0.2%
Adience, Inc. 11%, 6/15/02 - 2,823,003 2,046,677
CONSTRUCTION - 0.5%
Baldwin Co. Series B, 10 3/8%, 8/1/03 B2 2,750,000 1,746,250
Engle Homes, Inc. 11 3/4%, 12/15/00 B2 2,500,000 2,250,000
3,996,250
REAL ESTATE - 0.5%
Littlefield Co. Series B,10%, 12/31/95 (e) - 4,070,000 4,070,000
TOTAL CONSTRUCTION & REAL ESTATE 10,112,927
DURABLES - 0.8%
TEXTILES & APPAREL - 0.8%
Hat Brands, Inc.:
12 5/8%, 9/15/02 - 3,470,000 3,652,175
Series D, 12 5/8%, 9/15/02 - 3,000,000 3,157,500
6,809,675
CORPORATE BONDS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
NONCONVERTIBLE BONDS - CONTINUED
ENERGY - 6.1%
ENERGY SERVICES - 3.7%
Falcon Drilling, Inc. 12 1/2%, 3/15/05 (f) B3 $ 4,000,000 $ 4,040,000
TransTexas Gas Corp. 10 1/2%, 9/1/00 B1 25,300,000 26,691,500
30,731,500
OIL & GAS - 2.4%
TransAmerican Refining Corp. 16 1/2%,
2/15/02 (h) Caa 18,500,000 19,471,250
TOTAL ENERGY 50,202,750
FINANCE - 11.9%
CREDIT & OTHER FINANCE - 4.3%
Mesa Capital Corp. secured 0%, 6/30/98 (d) Caa 37,190,000 35,702,400
INSURANCE - 6.2%
American Annuity Group, Inc. 11 1/8%, 2/1/03 B2 1,370,000 1,411,100
American Financial Corp.:
12%, 9/3/99 - 21,943,000 22,052,715
Series A, 12%, 9/3/99 - 223,000 224,115
Series B, 12%, 9/3/99 - 20,530,000 20,632,650
9 3/4%, 4/20/04 B+ 7,190,000 7,046,200
51,366,780
SAVINGS & LOANS - 1.2%
First Nationwide Holdings, Inc.
12 1/4%, 5/15/01 Ba3 9,830,000 10,272,350
SECURITIES INDUSTRY - 0.2%
ECM Corp. extendible 14%, 6/1/02 (f) - 1,330,551 1,463,606
TOTAL FINANCE 98,805,136
HOLDING COMPANIES - 0.2%
New Street Capital Corp. Unit 12%, 2/28/98 (e) - 1,764,052 1,729,953
INDUSTRIAL MACHINERY & EQUIPMENT - 0.7%
RHI Holdings, Inc. 11 7/8%, 3/1/99 (e) - 650,000 628,875
Terex Corp. 13 3/4%, 5/15/02 (f) - 5,000,000 5,012,500
5,641,375
CORPORATE BONDS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
NONCONVERTIBLE BONDS - CONTINUED
MEDIA & LEISURE - 17.2%
BROADCASTING - 6.0%
Citicasters, Inc. 9 3/4%, 2/15/04 B- $ 8,625,000 $ 8,495,625
PTI Holdings, Inc. 7%, 12/17/02 - 3,120,526 1,841,110
Robin Media Group, Inc. 11 1/8%, 4/1/97 - 19,010,000 18,724,850
SCI Television, Inc. secured 11%, 6/30/05 B3 10,761,118 11,191,563
Univision Network Holding LP 7%, 12/17/02 - 16,112,365 9,506,295
49,759,443
ENTERTAINMENT - 2.0%
Players International, Inc. 10 7/8%,
4/15/05 (f) Ba3 5,330,000 5,369,975
Stratosphere Corp. 14 1/4%, 5/15/02 B2 10,880,000 11,097,600
16,467,575
LEISURE DURABLES & TOYS - 1.4%
Compact Video, Inc. 12 3/4%, 7/1/96 - 11,250,000 11,250,000
LODGING & GAMING - 7.8%
Bally Gaming International, Inc.
10 3/8%, 7/15/98 - 7,500,000 7,725,000
Grand Casino Resorts, Inc. gtd.
12 1/2%, 2/1 00 Ba3 15,740,000 16,487,650
Harrah's Jazz Co. 14 1/4%, 11/15/01 B1 36,280,000 39,545,200
Maritime Group Ltd. pay-in-kind 14%,
2/15/97 (b) - 2,389,627 1,075,332
64,833,182
TOTAL MEDIA & LEISURE 142,310,200
NONDURABLES - 4.1%
HOUSEHOLD PRODUCTS - 4.1%
McAndrews & Forbes Group, Inc.
12 1/4%, 7/1/96 - 11,255,000 11,255,000
Revlon Worldwide Corp. secured 0%, 3/15/98 B3 35,304,000 22,418,040
33,673,040
RETAIL & WHOLESALE - 3.2%
APPAREL STORES - 0.2%
Lamonts Apparel Corp. 10 1/4%, 11/1/99 (b)(f) - 3,081,000 1,586,715
GENERAL MERCHANDISE STORES - 1.2%
Parisian, Inc. 9 7/8%, 7/15/03 Caa 14,835,000 10,532,850
CORPORATE BONDS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
NONCONVERTIBLE BONDS - CONTINUED
RETAIL & WHOLESALE - CONTINUED
GROCERY STORES - 1.5%
Dominicks Fine Foods 10 7/8%,
5/1/05 (f) B3 $ 1,560,000 $ 1,575,600
Purity Supreme, Inc. 11 3/4%, 8/1/99 B3 9,855,000 10,643,400
12,219,000
RETAIL & WHOLESALE, MISCELLANEOUS - 0.3%
Town & Country Corp.:
11 1/2%, 9/15/97 B1 517,000 292,105
13%, 5/31/98 B3 3,125,782 1,190,235
13%, 12/15/98 Ca 2,110,000 928,400
2,410,740
TOTAL RETAIL & WHOLESALE 26,749,305
SERVICES - 1.3%
LEASING & RENTAL - 0.3%
Scotsman Holdings, Inc. pay-in-kind
11%, 3/1/04 - 3,037,676 2,577,559
SERVICES - 1.0%
Borg Warner Security Corp. 9 1/8%, 5/1/03 B2 10,000,000 8,550,000
TOTAL SERVICES 11,127,559
TECHNOLOGY - 3.2%
COMMUNICATIONS EQUIPMENT - 3.1%
Echostar Communications Corp.
Unit 0%, 6/1/04 (d) Caa 49,638,000 25,811,760
COMPUTERS & OFFICE EQUIPMENT - 0.1%
Alpine Group, Inc. 13 1/2%, 1/5/96 (e) Caa 480,000 477,600
TOTAL TECHNOLOGY 26,289,360
CORPORATE BONDS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
NONCONVERTIBLE BONDS - CONTINUED
TRANSPORTATION - 0.4%
AIR TRANSPORTATION - 0.4%
Continental Airlines, Inc. 2nd priority secured
equipment certificate 11%, 3/15/00 (b) Caa $ 480,000 $ 48
U.S. Air, Inc.:
9 5/8%, 2/1/01 B3 330,000 270,600
10%, 7/1/03 B3 3,400,000 2,762,500
3,033,148
TOTAL NONCONVERTIBLE BONDS 422,746,228
TOTAL CORPORATE BONDS
(Cost $419,712,772) 425,644,550
COMMERCIAL MORTGAGE SECURITIES - 0.7%
La Salle National Trust NA, Trust No. 118501
11 3/4%, 12/29/08 (Cost $5,985,614) (e) - 5,985,614 5,985,614
COMMON STOCKS - 11.4%
SHARES
BASIC INDUSTRIES - 0.2%
CHEMICALS & PLASTICS - 0.2%
Atlantis Group, Inc. (Trivest/Winston) (a)(e) 39,687 228,200
Rexene Corp. (a) 76,400 964,550
1,192,750
PACKAGING & CONTAINERS - 0.0%
Crown Packaging Holdings Ltd. (warrants) (a) 4,576 132,704
total Basic industries 1,325,454
DURABLES - 0.2%
TEXTILES & APPAREL - 0.2%
Hat Brands, Inc. (warrants) (a)(e) 29,995 329,947
HM/Hat Brands Trust Class I Units (a)(e)(i) 1,500,000 1,500,000
1,829,947
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
ENERGY - 0.2%
OIL & GAS - 0.2%
TransAmerican Refining Corp. (warrants) (a) 406,123 $ 1,319,900
FINANCE - 3.9%
INSURANCE - 3.8%
American Premier Group, Inc. 1,113,900 27,569,025
Vesta Insurance Group Corp. 117,800 3,931,575
31,500,600
SECURITIES INDUSTRY - 0.1%
ECM Corp. LP interest (f) 5,400 540,000
TOTAL FINANCE 32,040,600
INDUSTRIAL MACHINERY & EQUIPMENT - 0.1%
ELECTRICAL EQUIPMENT - 0.1%
Ampex Corp. (a):
Class A 34,982 65,591
Class A (warrants) 98,726 185,111
Class C 394,359 739,423
990,125
INDUSTRIAL MACHINERY & EQUIPMENT - 0.0%
Terex Corp. (rights) (a) 13,020 6,510
Thermadyne Holdings Corp. (a) 1 13
6,523
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 996,648
MEDIA & LEISURE - 5.3%
BROADCASTING - 1.9%
Citicasters, Inc. (a) 400,900 14,031,500
Chancellor Trust Class I Unit (a)(e) 74 1,494,949
15,526,449
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
MEDIA & LEISURE - CONTINUED
LODGING & GAMING - 3.4%
Bally Gaming International, Inc. (warrants) (a) 225,000 $ 1,546,875
Grand Casinos, Inc. (a) 262,100 7,273,275
Maritime Group Ltd. (warrants) (a) 25,920 259
Showboat, Inc. (i) 944,050 14,396,763
Sun International Hotels Ltd. (a) 37,073 1,297,555
Sun International Hotels Ltd. Class B (a) 7,785 245,422
WMS Industries, Inc. (a) 170,800 3,223,850
27,983,999
TOTAL MEDIA & LEISURE 43,510,448
NONDURABLES - 0.3%
BEVERAGES - 0.3%
Heileman G Brewing, Inc. Class 1 (a)(e) 150 2,400,000
RETAIL & WHOLESALE - 0.0%
APPAREL STORES - 0.0%
Lamonts Apparel, Inc. (a):
(New) 562,103 175,657
(warrants) 92,674 1
175,658
GROCERY STORES - 0.0%
FF Holdings Corp. (a)(e) 455 910
Grand Union Co. (warrants) (a) 1,079 -
Grand Union Capital Corp. Class B (a) 2,009 -
Purity Supreme, Inc. (warrants) (a)(e) 19,870 199
1,109
TOTAL RETAIL & WHOLESALE 176,767
SERVICES - 0.0%
LEASING & RENTAL - 0.0%
Scotsman Holdings, Inc. (a) 22,309 291,802
TECHNOLOGY - 0.6%
ELECTRONICS - 0.6%
Berg Electronics Holdings Corp. (a)(f) 1,075,080 5,375,400
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TRANSPORTATION - 0.0%
AIR TRANSPORTATION - 0.0%
CHC Helicopter Corp. (warrants) (a) 30,960 $ -
UTILITIES - 0.6%
GAS - 0.6%
Columbia Gas System, Inc. (The) (a) 167,200 4,932,400
UGI Corp. (warrants) (a) 37,100 5,565
4,937,965
TOTAL COMMON STOCKS
(Cost $86,786,402) 94,204,931
PREFERRED STOCKS - 4.5%
CONVERTIBLE PREFERRED STOCKS - 2.2%
NONDURABLES - 1.2%
HOUSEHOLD PRODUCTS - 1.2%
Revlon Group, Inc., Series B,
exchangeable pay-in-kind $14.875 99,488 9,948,800
RETAIL & WHOLESALE - 1.0%
GROCERY STORES - 1.0%
Supermarkets General Holdings Corp.
exchangeable pay-in-kind $3.52 (a) 301,641 7,842,666
TECHNOLOGY - 0.0%
COMPUTERS & OFFICE EQUIPMENT - 0.0%
Alpine Group, Inc. 8% cumulative (a) 3,161 142,245
TOTAL CONVERTIBLE PREFERRED STOCKS 17,933,711
NONCONVERTIBLE PREFERRED STOCKS - 2.3%
BASIC INDUSTRIES - 0.0%
IRON & STEEL - 0.0%
Stelco, Inc. cumulative, Series B, 7.76% (a) 23,803 355,478
PREFERRED STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
ENERGY - 1.4%
OIL & GAS - 1.4%
Gulf Canada Resources Ltd. (a)(e) 53,931 $ 155,052
Gulf Canada Resources Ltd. Series 1, adj. rate 4,071,900 11,452,219
11,607,271
INDUSTRIAL MACHINERY & EQUIPMENT - 0.2%
ELECTRICAL EQUIPMENT - 0.2%
Ampex Corp. 8% (a) (e) 2,723 1,501,054
MEDIA & LEISURE - 0.7%
BROADCASTING - 0.7%
Panamsat Corp. 12 3/4% (a) 6,021 6,111,315
TOTAL NONCONVERTIBLE PREFERRED STOCKS 19,575,118
TOTAL PREFERRED STOCKS
(Cost $35,314,417) 37,508,829
PURCHASED BANK DEBT - 1.1%
PRINCIPAL
AMOUNT
El Paso Electric Co. term loan:
secured loan $2,640,038 2,560,837
variable rate 2,890,000 2,803,300
Trivest 1992 Special Fund Ltd. loan 13.6 (g) 3,475,681
TOTAL PURCHASED BANK DEBT
(Cost $8,093,803) 8,839,818
REPURCHASE AGREEMENTS - 30.8%
MATURITY
AMOUNT

Investments in repurchase agreements
(U.S. Treasury obligations) in a
joint trading account at 5.93%,
dated 4/28/95 due 5/1/95 (Note 3) $ 254,518,713 254,393,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $810,286,008) $ 826,576,742
LEGEND
(j) Non-income producing
(k) Non-income producing - issuer filed for protection under the Federal
Bankruptcy Code or is in default of interest payment.
(l) Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
(m) Debt obligation initially issued in zero coupon form which converts to
coupon form at a specified rate and date.
(n) 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
SECURITY DATE COST
Alpine Group, Inc.
13 1/2%,
1/5/96 1/4/95 $ 471,791
Ampex Corp. 8% 2/16/95 $ 1,429,575
Atlantis Group, Inc.
(Trivest/Winston) 4/6/93 $ 46,451
Chancellor Trust
Class 1 Unit 10/12/94 $ 1,494,949
FF Holdings Corp. 10/2/92 $ 18,200
Gulf Canada
Resources Ltd. 10/15/93 $ 133,814
Hat Brands, Inc. 9/2/92 to
(warrants) 2/23/94 $ 0
Heileman G
Brewing, Inc.
Class 1 1/21/94 $ 3,000,000
HM/Hat Brands
Trust Class 1
Units 2/22/94 $ 1,500,000
LaSalle National
Trust NA, Trust
No. 118501
11 3/4%,
12/29/08 12/29/93 $ 5,985,614
Littlefield Co.
Series B, 10%,
12/31/95 2/28/94 $ 4,070,000
New Street
Capital Corp.
Unit 12%,
2/28/98 2/25/94 $ 1,570,000
Purity Supreme Inc.
(warrants) 7/29/92 $ 77
Rexnord Holdings,
Inc. 11 7/8%,
3/1/99 10/15/92 $ 585,000
(o) 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 $27,148,796 or 3.4% of net
assets.
(p) Represents number of units held.
(q) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(r) Affiliated company (see Note 7 of Notes to Financial Statements).
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 0.0%
Ba 4.4% BB 10.7%
B 17.6% B 17.4%
Caa 11.4% CCC 1.5%
Ca, C 0.1% 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 16.8% including long-term debt
categorized as other securities. FMR has determined that unrated debt
securities that are lower quality account for 16.8% of the total value of
investment in securities.
INCOME TAX INFORMATION
At April 30. 1995, the aggregate cost of investment securities for income
tax purposes was $812,633,883. Net unrealized appreciation aggregated
$13,942,859, of which $30,095,162 related to appreciated investment
securities and $16,152,303 related to depreciated investment securities.
The fund has elected to defer to its fiscal year ending April 30, 1996
$8,292,955 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 APRIL 30, 1995

ASSETS

Investment in securities, at value (including repurchase $ 826,576,742
agreements of $254,393,000) (cost $810,286,008) -
See accompanying schedule

Cash 844

Receivable for investments sold 40,181,400

Receivable for fund shares sold 1,514,828

Dividends receivable 91,218

Interest receivable 10,588,472

TOTAL ASSETS 878,953,504

LIABILITIES

Payable for investments purchased $ 67,821,284

Distributions payable 1,016,097

Accrued management fee 518,713

TOTAL LIABILITIES 69,356,094

NET ASSETS $ 809,597,410

Net Assets consist of:

Paid in capital $ 788,854,722

Undistributed net investment income 10,926,170

Accumulated undistributed net realized gain (loss) on (6,480,493)
investments and foreign currency transactions

Net unrealized appreciation (depreciation) on 16,297,011
investments and assets and liabilities in foreign
currencies

NET ASSETS, for 67,536,672 shares outstanding $ 809,597,410

NET ASSET VALUE, offering price and redemption price per $11.99
share ($809,597,410 (divided by) 67,536,672 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED APRIL 30, 1995

INVESTMENT INCOME $ 3,547,840
Dividends (including $19,834 received from affiliated
issuers)

Interest 57,407,000

TOTAL INCOME 60,954,840

EXPENSES

Management fee $ 5,294,287

Non-interested trustees' compensation 3,153

TOTAL EXPENSES 5,297,440

NET INVESTMENT INCOME 55,657,400

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

Investment securities (including realized gain of 2,194,617
$16,041 on sales of investments in affiliated issuers)

Foreign currency transactions 1,475 2,196,092

Change in net unrealized appreciation (depreciation) on:

Investment securities 13,966,970

Assets and liabilities in foreign currencies 6,277 13,973,247

NET GAIN (LOSS) 16,169,339

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 71,826,739
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30,
1995 1994

INCREASE (DECREASE) IN NET ASSETS

Operations $ 55,657,400 $ 54,180,591
Net investment income

Net realized gain (loss) 2,196,092 45,427,612

Change in net unrealized appreciation (depreciation) 13,973,247 (25,158,437)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 71,826,739 74,449,766
FROM OPERATIONS

Distributions to shareholders (52,851,507) (52,719,224)
From net investment income

In excess of net investment income (6,230,960) (4,190,784)

From net realized gain (4,360,064) (40,280,405)

TOTAL DISTRIBUTIONS (63,442,531) (97,190,413)

Share transactions 362,722,717 376,388,246
Net proceeds from sales of shares

Reinvestment of distributions 49,860,605 80,688,781

Cost of shares redeemed (252,615,522) (397,341,830)

Redemption fees 560,383 2,273,295

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 160,528,183 62,008,492
FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS 168,912,391 39,267,845

NET ASSETS

Beginning of period 640,685,019 601,417,174

End of period (including undistributed net investment $ 809,597,410 $ 640,685,019
income of $10,926,170 and $6,547,551,
respectively)

OTHER INFORMATION
Shares

Sold 31,214,251 30,409,458

Issued in reinvestment of distributions 4,296,903 6,545,733

Redeemed (21,902,511) (32,248,109)

Net increase (decrease) 13,608,643 4,707,082

</TABLE>

FINANCIAL HIGHLIGHTS

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

1995 1994 1993 1992 1991

SELECTED PER-SHARE DATA

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

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

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

Total from investment 1.215 1.458 1.847 2.906 1.413
operations

Less Distributions (.927) (.976) (1.183) (1.342) (.796)
From net investment
income

In excess of net investment (.109) (.078) - - -
income

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

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

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

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

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

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period $ 809,597 $ 640,685 $ 601,417 $ 370,933 $ 100,840
(000 omitted)

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

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

Portfolio turnover rate 172 213 136 99 72% 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 BEGAN REFLECTING IN NET INVESTMENT INCOME
PER SHARE CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES IN
ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.
NOTES TO FINANCIAL STATEMENTS
For the period ended April 30, 1995

15. 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 (sales prices if the principal market is an
exchange) in the principal market 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.
Effective May 1, 1994, the fund adopted Statement of Position (SOP) 93-4:
Foreign Currency Accounting and Financial Statement Presentation for
Investment Companies. In accordance with this SOP, 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. Further, as permitted under the SOP, the effects of changes in
foreign currency exchange rates on investments in securities are not
segregated in the Statement of Operations from the effects of changes in
market prices of those securities, but 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 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 and dividend income is recorded on the
ex-dividend date. The fund may place a debt obligation on non-accrual
status and reduce related
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
INVESTMENT INCOME - CONTINUED
interest income by ceasing current accruals and writing off interest
receivables when the collection of all or a portion of interest has become
doubtful based on consistently applied procedures, 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 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.
16. 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 securities, whose market value is required to be at least
102% of the resale price at the time of purchase. FMR, the fund's
investment adviser, is responsible for determining that the value of these
underlying securities remains at least equal to the resale price.
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 privately placed
restricted securities. These securities 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 $20,502,353 or 2.5% of net assets.
17. 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 repurchase agreements were dated April 28,
1995 and due May 1, 1995. The maturity values of the joint trading account
investments were $254,518,713 at 5.93 %. The investments in repurchase
agreements through the joint trading account are summarized as follows:

21. TRANSACTIONS WITH
AFFILIATED COMPANIES.
An affiliated company is a company in which the fund has ownership of at
least 5% of the voting securities. Transactions with companies which are or
were affiliates are as follows:
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES
PURCHASE SALES DIVIDEND MARKET
AFFILIATE COST COST INCOME VALUE
HM/Hat Brands Trust Class 1
Units (a) $ - $ - $ - $ 1,500,000
Showboat, Inc. 2,635,222 1,295,420 19,834 14,396,763
TOTALS $ 2,635,222 $ 1,295,420 $ 19,834 $ 15,896,763
(a) Non-income producing
REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees of Fidelity Fixed-Income Trust and the Shareholders of
Spartan High Income Fund:
We have audited the accompanying statement of assets and liabilities of
Fidelity Fixed-Income Trust: Spartan High Income Fund, including the
schedule of portfolio investments, as of April 30, 1995, and the related
statement of operations for the year then ended, the statement of changes
in net assets for each of the two years in the period then ended and the
financial highlights for each of the four years in the period then ended
and for the period April 29, 1990, (commencement of operations) to April
30, 1991. These financial statements and financial highlights are the
responsibility of the fund's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of April 30, 1995 by correspondence with the custodian
and brokers. An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Fixed-Income Trust: Spartan High Income Fund as of April 30,
1995, the results of its operations for the year then ended, the changes in
its net assets for each of the two years in the period then ended, and the
financial highlights for each of the four years in the period then ended
and for the period April 29, 1990 (commencement of operations) to April 30,
1991, in conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
June 8, 1995
DISTRIBUTIONS

The Board of Trustees of Spartan High Income Fund voted to pay on June 5,
1995, to shareholders of record at the opening of business on June 2, 1995,
a distribution of $.07 derived from capital gains realized from sales of
portfolio securities.
A total of 9% of the dividends distributed during the fiscal year qualifies
for the dividendsreceived deductions for corporate shareholders.
The fund will notify shareholders in January 1996 of the applicable
percentage for use in preparing 1995 income tax returns.
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
Stephen P. Jonas, 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
ANNUAL REPORT
APRIL 30, 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.

REPORT OF INDEPENDENT 20 The auditors' opinion.
ACCOUNTANTS

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, THE
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT
RISK,
INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. 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. Each figure
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 APRIL 30, 1995 PAST 1 LIFE OF
YEAR FUND

Spartan Short-Intermediate Government 6.58% 10.56%

Lehman Brothers 1-3 Year Government Bond Index 5.70% n/a

Salomon Brothers 1-5 Year Treasury Index 5.86% n/a

Average Short-Term U.S. Government Fund 4.51% n/a

Consumer Price Index 3.05% 7.05%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, 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 Lehman
Brothers 1-3 Year Government Bond Index or to the Salomon Brothers 1-5 Year
Treasury Index - both broad measures 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 125 funds with similar objectives
tracked by Lipper Analytical Services over the past 12 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 APRIL 30, 1995 PAST 1 LIFE OF
YEAR FUND

Spartan Short-Intermediate Government 6.58% 4.33%

Lehman Brothers 1-3 Year Government Bond Index 5.70% n/a

Salomon Brothers 1-5 Year Treasury Index 5.86% n/a

Average Short-Term U.S. Government Fund 4.51% n/a

Consumer Price Index 3.05% 2.96%

$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 April 30, 1995, the value of your
investment, with dividends reinvested, would have grown to $11,013 - a
10.13% increase on your initial investment. This assumes you still owned
the fund on April 30, 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 $11,118 - an
11.18% increase. Beginning with this report the fund will compare its
performance to the Salomon Brothers 1-5 Year Treasury Index rather than the
Lehman Brothers 1-3 Year Government Bond Index. The Salomon Brothers
Index's average maturity is closer to the range permitted for the fund,
which normally maintains an average maturity of between two and five years.
For comparison purposes, both indexes are shown on Page 4.
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, DECEMBER 18, 1992
(COMMENCEMENT OF
OPERATIONS) TO

1995 1994 APRIL 30, 1993

Dividend return 7.12% 6.14% 2.53%

Capital appreciation return -0.54% -5.87% 0.88%

Total return 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 APRIL 30, 1995 PAST PAST 6 PAST 1
MONTH MONTHS YEAR

Dividends per share 5.48(cents) 34.04(cents) 64.99(cents)

Annualized dividend rate 7.06% 7.37% 6.94%

30-day annualized yield 6.66% - -

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 $9.45 over
the past month, $9.32 over the past six months and $9.37 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 6.11% and the dividend
rate and total returns would have been lower.
FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
A rally starting in mid-November
1994 helped resuscitate the U.S.
bond market, which had been
reeling from several months of
sharply rising interest rates. For
the 12 months ended April 30,
1995, the Lehman Brothers
Aggregate Bond Index - a broad
measure of U.S. taxable bonds -
had a total return of 6.51%. During
the period, the Federal Reserve
Board raised the federal funds
rate - the rate banks charge each
other for overnight loans - to
6.00%. From March 1994 through
October 1994, these actions,
combined with a strengthening
economy, sparked inflation fears,
leading to a sharp sell-off in the
bond markets. However, from
November 1994 through April
1995 prices in the taxable bond
market rebounded. Investors
gained confidence that the
economy was beginning to slow
- - reducing the risk of inflation -
and that the Fed may have been
nearing the end of its interest-rate
increases. Outside of the U.S.,
interest rates in many foreign
markets moved higher - and
prices lower - through 1994,
before rebounding with the U.S.
market during the first four months
of 1995.
An interview with Curt Hollingsworth, Portfolio Manager of Spartan
Short-Intermediate Government Fund
Q. CURT, HOW HAS THE FUND PERFORMED?
A. For the 12 months ended April 30, 1995, the fund had a total return of
6.58%. That compared favorably to the average short-term U.S. government
fund's return of 4.51% for the same period, as tracked by Lipper Analytical
Services, and to the 5.86% return of the Salomon Brothers 1-5 Year Treasury
Index.
Q. WHY WAS THE FUND ABLE TO PERFORM BETTER THAN ITS PEERS?
A. The key element was how the fund was structured along the maturity
spectrum during different periods of time. A year ago, the fund had a
relatively large weighting in cash, which is obviously a very short-term
investment, and also in longer-term securities. At that point, the fund was
relatively light in intermediate securities with maturities of two to three
years. As interest rates rose, yields on intermediate-term securities rose
more than yields on longer-term securities. This strategy, known as a
"barbell," helped the fund's performance throughout most of 1994.
Q. BUT INTEREST RATES STOPPED RISING BY THE END OF 1994 - AND SO FAR,
YIELDS HAVE FALLEN IN 1995. DID YOU ALTER YOUR STRATEGY?
A. Yes. The yield curve, or the difference in yield between securities with
various maturities, was quite flat. When that occurs, longer-term bonds
offer very little additional yield over shorter securities. Based on
historical information, I felt that the yield curve wouldn't flatten much
more, and, if anything, might steepen a little. In the fourth quarter of
1994, I moved the fund to a "laddered" maturity distribution, meaning it
was more diversified across securities with maturities ranging from one to
five years in most cases. In fact, the curve started to steepen in late
December, and the fund benefited from having a laddered structure.
Q. MORTGAGE-BACKED SECURITIES REPRESENTED ONLY A SMALL PORTION OF THE
FUND'S INVESTMENTS AT THE END OF THE PERIOD. THAT'S SOMEWHAT SURPRISING
GIVEN THAT A YEAR AGO THEY REPRESENTED MORE THAN HALF OF THE FUND...
A. Early in the period the fund owned more Ginnie Mae securities because
they offered a significant yield advantage over comparable Treasury
securities. When the yield spread between Ginnie Maes and U.S. Treasuries
increases - as it had by early 1994 - Ginnie Mae securities typically do
quite well going forward. But by the end of 1994, the yield advantage of
owning Ginnie Mae securities became less and less, so I started selling
them to take profits. In their place, I bought U.S. Treasury and agency
securities. As of April 30, 1995, only 2.4% of the fund was invested in
Ginnie Maes, while 90% was invested in U.S. Treasury and agency issues.
Q. WHY DID GINNIE MAES LOSE THEIR YIELD ADVANTAGE?
A. Because higher interest rates slowed prepayment activity. Typically,
sellers of mortgage-backed securities need to compensate buyers with higher
yields than comparable U.S. Treasury bonds because of prepayment risk - the
risk that mortgage holders will pay off their loans early. As interest
rates rose, prepayment activity dropped since homeowners were less likely
to refinance at higher rates. As a result, buyers of Ginnie Maes did not
demand as much of a yield advantage.
Q. WHAT TYPES OF AGENCY ISSUES ARE ATTRACTIVE?
A. I favored State of Israel guaranteed notes, which are fully guaranteed
as to principal and interest payments by the United States of America,
acting through the Agency for International Development. These securities
offer an attractive yield relative to Treasuries, and are non-callable, and
so cannot be redeemed before their maturity date. That means there is no
uncertainty as to when the bond holder will receive principal and interest
payments.
Q. WHAT DO YOU SEE LOOKING OUT OVER THE NEXT SIX MONTHS?
A. It's very difficult to predict the direction of interest rates. As a
result, I don't intend to actively manage the fund's duration in
anticipation of interest rate changes. Instead, I try to manage the fund so
that it will have approximately the same duration as the Salomon Brothers
1-5 Year Treasury Index. Duration is an estimate of how sensitive the
fund's share price is to a change in comparable interest rates. As I
mentioned earlier, based on the current shape of the yield curve, I have
laddered the fund. During the next six months if I concluded that the yield
curve were likely to steepen further, I might give the fund a "bulleted"
maturity distribution by overweighting intermediate securities such as
two-year and three-year Treasury notes, whose yields would probably drop
more than the yields on longer-term bonds. As far as sector weights go, I
will most likely invest more of the fund in Ginnie Mae securities when they
once again offer significantly higher yields than comparable Treasuries.
FUND FACTS
GOAL: high current income
with preservation of capital
START DATE: December 18,
1992
SIZE: as of April 30, 1995,
more than $93 million
MANAGER: Curt
Hollingsworth, since 1992;
also manages Fidelity
Short-Intermediate
Government, Spartan Limited
Maturity Government,
Spartan Long-Term
Government Bond funds and
Fidelity Institutional
Short-Intermediate
Government Portfolio;
Fidelity Government
Securities Fund, 1990 -
February 1995; Fidelity
Advisor Government
Investment Fund, 1992 -
February 1995; joined Fidelity
in 1983
(checkmark)
CURT HOLLINGSWORTH ON THE
DOLLAR AND ITS IMPACT ON
INTEREST RATES:
"The weakening U.S. dollar
has garnered a lot of media
attention lately. Many analysts
have forecast that the Federal
Reserve Board might be forced
to raise interest rates in order
to support the dollar. However,
in my view, the exchange rate
won't be the driving factor in
determining Fed policy.
Instead, inflation and the
economy will play bigger roles
in determining Fed actions.
"It's important to remember
that most of today's headlines
relate to the dollar's value
relative to the yen or the
deutsche mark. However, the
dollar has been strong
against the currencies of
Mexico and Canada, two of
our three biggest trading
partners. In fact, while the
value of the dollar has fallen
against the yen and
deutsche mark since 1990, it
has risen against a broader
index of 101 foreign
currencies that is weighted by
the volume of trade with the
United States."
DISTRIBUTIONS
A total of 55.24% of the
dividends distributed during
the fiscal year was derived
from interest on U.S.
government securities that is
generally exempt from state
income tax.
The fund will notify
shareholders in January 1996
of the applicable percentage
for use in preparing 1995
income tax returns.
INVESTMENT CHANGES

COUPON DISTRIBUTION AS OF APRIL 30, 1995
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS
6 MONTHS AGO

Under 7% 7.0 0.0

7 - 7.99% 25.4 22.3

8 - 8.99% 59.0 6.6

9 - 9.99% 0.0 37.4

10 - 10.99% 0.8 10.9

11% and over 0.2 0.4

COUPON DISTRIBUTION SHOWS THE RANGE OF STATED INTEREST RATES ON THE FUND'S
INVESTMENTS, EXCLUDING REPURCHASE AGREEMENTS.
AVERAGE YEARS TO MATURITY AS OF APRIL 30, 1995
6 MONTHS AGO

Years 2.7 4.2

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 APRIL 30, 1995
6 MONTHS AGO

Years 2.2 2.8

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 APRIL 30, 1995 AS OF OCTOBER 31, 1994
Row: 1, Col: 1, Value: 7.6
Row: 1, Col: 2, Value: 90.0
Row: 1, Col: 3, Value: 2.4
Mortgage-backed
securities 34.4%
U.S. government
and government
agency obligations 43.3%
Short-term
investments 22.3%
Row: 1, Col: 1, Value: 22.3
Row: 1, Col: 2, Value: 43.3
Row: 1, Col: 3, Value: 34.4
Mortgage-backed
securities 2.4%
U.S. government
and government
agency obligations 90.0%
Short-term
investments 7.6%

INVESTMENTS APRIL 30, 1995

Showing Percentage of Total Value of Investment in Securities

U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS - 90.0%
SHARES VALUE (NOTE 1)
(000S)
U.S. TREASURY OBLIGATIONS - 77.4%
4 3/8%, 11/15/96 $ 5,815,000 $ 5,634,212
8 1/2%, 5/15/97 26,940,000 27,908,224
8 3/4%, 10/15/97 23,490,000 24,572,654
5 3/8%, 5/31/98 560,000 538,474
7 1/8%, 9/30/99 11,720,000 11,831,692
TOTAL U.S. TREASURY OBLIGATIONS 70,485,256
U.S. GOVERNMENT AGENCY OBLIGATIONS - 12.6%
State of Israel (guaranteed by U.S. Government
through Agency for International Development):
4 7/8%, 9/15/98 120,000 112,425
6%, 2/15/99 50,000 48,304
7 1/8%, 8/15/99 11,188,000 11,197,566
7 3/4%, 11/15/99 90,000 91,980
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS 11,450,275
TOTAL U.S. GOVERNMENT AND GOVERNMENT
AGENCY OBLIGATIONS (Cost $81,828,743) 81,935,531
U.S. GOVERNMENT AGENCY - MORTGAGE-BACKED SECURITIES - 2.4%
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 2.4%
8 1/2%, 9/15/21 to 11/15/21 1,154,271 1,177,537
10%, 6/15/13 to 10/15/17 719,517 776,493
12%, 1/15/14 to 3/15/14 93,355 102,224
13%, 9/15/14 74,122 83,061
TOTAL U.S. GOVERNMENT AGENCY -
MORTGAGE-BACKED SECURITIES (Cost $2,150,642) 2,139,315
REPURCHASE AGREEMENTS - 7.6%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a
joint trading account at 5.93%,
dated 4/28/95 due 5/1/95 $6,917,417 6,914,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $90,893,385) $ 90,988,846
INCOME TAX INFORMATION
At April 30, 1995, the aggregate cost of investment securities for income
tax purposes was $91,163,666. Net unrealized depreciation aggregated
$174,820, of which $84,051 related to appreciated investment securities and
$258,871 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 ended April 30, 1996
$922,000 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 APRIL 30, 1995

ASSETS

Investment in securities, at value (including repurchase $ 90,988,846
agreements of $6,914,000) (cost $90,893,385) -
See accompanying schedule

Cash 963

Receivable for investments sold 938,625

Receivable for fund shares sold 731,803

Interest receivable 1,517,210

TOTAL ASSETS 94,177,447

LIABILITIES

Payable for investments purchased $ 217,703

Distributions payable 64,217

Accrued management fee 7,588

TOTAL LIABILITIES 289,508

NET ASSETS $ 93,887,939

Net Assets consist of:

Paid in capital $ 97,482,301

Distributions in excess of net investment income (4,469)

Accumulated undistributed net realized gain (loss) (3,685,354)
on investments

Net unrealized appreciation (depreciation) on 95,461
investments

NET ASSETS, for 9,947,071 shares outstanding $ 93,887,939

NET ASSET VALUE, offering price and redemption price per $9.44
share ($93,887,939 (divided by) 9,947,071 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED APRIL 30, 1995

INVESTMENT INCOME $ 4,205,743
Interest

EXPENSES

Management fee $ 366,621

Non-interested trustees' compensation 245

Interest 396

Total expenses before reductions 367,262

Expense reductions (310,316) 56,946

NET INVESTMENT INCOME 4,148,797

REALIZED AND UNREALIZED GAIN (LOSS) (2,078,331)
Net realized gain (loss) on investment securities

Change in net unrealized appreciation (depreciation) 2,114,235
on investment securities

NET GAIN (LOSS) 35,904

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

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30,
1995 1994

INCREASE (DECREASE) IN NET ASSETS

Operations $ 4,148,797 $ 4,525,900
Net investment income

Net realized gain (loss) (2,078,331) (2,409,978)

Change in net unrealized appreciation (depreciation) 2,114,235 (1,986,615)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 4,184,701 129,307
FROM OPERATIONS

Distributions to shareholders (3,933,715) (3,830,040)
From net investment income

In excess of net investment income - (64,564)

In excess of net realized gain - (57,694)

TOTAL DISTRIBUTIONS (3,933,715) (3,952,298)

Share transactions 90,170,216 74,995,739
Net proceeds from sales of shares

Reinvestment of distributions 3,267,353 2,805,719

Cost of shares redeemed (53,526,180) (75,106,348)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 39,911,389 2,695,110
FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS 40,162,375 (1,127,881)

NET ASSETS

Beginning of period 53,725,564 54,853,445

End of period (including distributions in excess of $ 93,887,939 $ 53,725,564
net investment income of $4,469 and $87,429,
respectively)

OTHER INFORMATION
Shares

Sold 9,650,275 7,484,068

Issued in reinvestment of distributions 348,431 344,283

Redeemed (5,715,464) (7,602,226)

Net increase (decrease) 4,283,242 226,125

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C>
YEAR ENDED YEAR ENDED DECEMBER 18,
APRIL 30, APRIL 30, 1992
(COMMENCEMENT
OF OPERATIONS) TO
APRIL 30,

1995 1994 1993

SELECTED PER-SHARE DATA

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

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

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

Total from investment operations .600 .037 .340

Less Distributions (.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 (.650) (.637) (.250)

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

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

RATIOS AND SUPPLEMENTAL DATA

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

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

Ratio of expenses to average net assets .65% .65% .65%A
before expense reductions

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

Portfolio turnover rate 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.
NOTES TO FINANCIAL STATEMENTS
For the period ended April 30, 1995

22. 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 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.
23. 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 securities, whose market value is required to be at least
102% of the resale price at the time of purchase. FMR, the fund's
investment adviser, is responsible for determining that the value of these
underlying securities remains at least equal to the resale price.
24. PURCHASES AND SALES
OF INVESTMENTS.
Purchases and sales of long-term U.S. government and government agency
obligations aggregated $175,322,843 and $134,375,909, respectively.
25. 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
$3,223 for the period.
26. BANK BORROWINGS.
The fund is permitted to have bank borrowings for temporary or emergency
purposes to fund shareholder redemptions. The fund has established
borrowing arrangements with certain banks. Under the most restrictive
arrangement, the fund must pledge to the bank securities having a market
value in excess of 220% of the total bank borrowings. The interest rate on
the borrowings is the bank's base rate, as revised from time to time. The
maximum loan and the average daily loan balance during the period for which
the loan was outstanding amounted to $2,305,000. The weighted average
interest rate was 6.19%.
27. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse the fund's operating expenses
(excluding interest, taxes, brokerage commissions and extraordinary
expenses) above an annual rate of .10% of average net assets. For the
period, the reimbursement reduced the expenses by $310,316. Effective May
1, 1995, FMR voluntarily agreed to reimburse the fund to the extent that
operating expenses were in excess of an annual rate of .20% of average net
assets.
28. LITIGATION.
In October, 1994 a complaint was filed in the Court of Common Pleas of
Philadelphia County against the trust, FMR, Fidelity Distributors
Corporation, and FMR Corp. The complaint was filed by a former shareholder
of the fund and seeks to have the case certified as a class action on
behalf of specified groups of shareholders of the fund. The complaint
alleges that, in violation of a Pennsylvania consumer protection statute
and federal securities laws, the fund's Registration statements contained
misleading statements regarding the dollar-weighted average maturity of the
fund's portfolio. The complaint seeks recision 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
this action vigorously.
On April 12, 1995 the Court of Common Pleas dismissed the complaint on the
ground that the state court was inconvenient for litigation of the former
shareholder's claims. On April 21, 1995 the former shareholder filed a
substantially similar complaint in the United States District Court in
Philadelphia.
REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees of Fidelity Fixed-Income Trust and the Shareholders of
Spartan Short-Intermediate Government Fund:
We have audited the accompanying statement of assets and liabilities of
Fidelity Fixed-Income Trust: Spartan Short-Intermediate Government Fund,
including the schedule of portfolio investments, as of April 30, 1995, and
the related statement of operations for the year then ended, the statement
of changes in net assets for each of the two years in the period then ended
and the financial highlights for each of the two years in the period then
ended and for the period December 18, 1992 (commencement of operations) to
April 30, 1993. These financial statements and financial highlights are the
responsibility of the fund's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of April 30, 1995 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Fixed-Income Trust: Spartan Short-Intermediate Government Fund
as of April 30, 1995, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the
period then ended, and the financial highlights for each of the two years
in the period then ended and for the period December 18, 1992 (commencement
of operations) to April 30, 1993, in conformity with generally accepted
accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
June 8, 1995
TO CALL FIDELITY

For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 East Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19100 Von Karman Avenue
Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
811 Wilshire Boulevard
Los Angeles, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
455 Market Street
San Francisco, CA
1400 Civic Drive
Walnut Creek, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
185 Asylum Street
Hartford, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
DELAWARE
222 Delaware Avenue
Wilmington, DE
FLORIDA
4400 N. Federal Highway
Boca Raton, FL
90 Alhambra Plaza
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
4001 Tamiami Trail, North
Naples, FL
1907 West State Road 434
Orlando, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
2000 66th Street, North
St. Petersburg, FL
GEORGIA
3525 Piedmont Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
HAWAII
700 Bishop Street
Honolulu, HI
ILLINOIS
215 East Erie Street
Chicago, IL
One North Franklin
Chicago, IL
540 Lake Cook Road
Deerfield, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
LOUISIANA
201 St. Charles Avenue
New Orleans, LA
MAINE
3 Canal Plaza
Portland, ME
MARYLAND
7401 Wisconsin Avenue
Bethesda, MD
1 West Pennsylvania Ave.
Towson, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
26955 Northwestern Hwy.
Southfield, MI
MINNESOTA
7600 France Avenue South
Edina, MN
MISSOURI
700 West 47th Street
Kansas City, MO
8885 Ladue Road
Ladue, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
60B South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
505 Millburn Avenue
Short Hills, NJ
NEW YORK
1050 Franklin Avenue
Garden City, NY
999 Walt Whitman Road
Melville, L.I., NY
1271 Avenue of the
Americas
New York, NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
4611 Sharon Road
Charlotte, NC
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
1903 East Ninth Street
Cleveland, OH
OREGON
121 S.W. Morrison Street
Portland, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
5100 Poplar Avenue
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
7001 Preston Road
Dallas, TX
1155 Dairy Ashford
Houston, TX
2701 Drexel Drive
Houston, TX
1010 Lamar Street
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
UTAH
215 South State Street
Salt Lake City, UT
VERMONT
199 Main Street
Burlington, VT
VIRGINIA
8180 Greensboro Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
1001 Fourth Avenue
Seattle, WA
WASHINGTON, DC
1775 K Street, N.W.
Washington, DC
WISCONSIN
222 East Wisconsin Avenue
Milwaukee, WI

INVESTMENT ADVISER
Fidelity Management & Research
Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Arthur S. Loring, Secretary
Stephen P. Jonas, 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
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
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)