FIDELITY
(registered trademark)
MORTGAGE SECURITIES
PORTFOLIO
SEMIANNUAL REPORT
JANUARY 31, 1994
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on minimizing taxes.
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 last six
months.
INVESTMENTS 11 A complete list of the fund's
investments with their market value.
FINANCIAL STATEMENTS 14 Statements of assets and liabilities,
operations, and changes in net
assets as well as financial highlights.
NOTES 18 Footnotes to the financial
statements.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR
ACCOMPANIED BY
AN EFFECTIVE PROSPECTUS. NEITHER THE FUND NOR FIDELITY DISTRIBUTORS
CORPORATION IS A
BANK AND FUND SHARES ARE NOT BACKED OR GUARANTEED BY ANY BANK OR INSURED BY
THE
FDIC.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
No one wants to pay more taxes than they have to. But a recent survey of
500 U.S. households, conducted by Fidelity and Yankelovich Partners, showed
that few people took steps to reduce their taxes under the new tax laws
that went into effect last year. In fact, many people were not completely
aware of the changes until they filed their 1993 tax returns.
Whether or not you're someone whose tax bill increased as a result of these
changes, it may make sense to consider ways to keep more of what you earn.
First, if your employer offers a 401(k) or 403(b) retirement savings plan,
consider enrolling. These plans are set up so you can make regular
contributions -
before taxes - to a retirement savings plan. They offer a disciplined
savings strategy, the ability to accumulate earnings tax-deferred, and
immediate tax savings. For example, if you earn $40,000 a year and
contribute 7% of your salary to your 401(k) plan, your annual contribution
is $2,800. That reduces your taxable income to $37,200 and, if you're in
the
28% tax bracket, saves you $784 in federal taxes. In addition, you pay no
taxes on any earnings until withdrawal.
It may be a good idea to contact your benefits office as soon as possible
to find out when you can enroll or increase your contribution. Most
employers allow employees to make changes only a few times each year.
Second, consider an IRA. Many people are eligible to make an IRA
contribution (up to $2,000) that is fully tax deductible. That includes
people who are not covered by company pension plans, or those within
certain income brackets. Even if you don't qualify for a fully deductible
contribution, any IRA earnings will grow tax-deferred until withdrawal.
Third, consider tax-free investments like municipal bonds and municipal
bond funds. Often these can provide higher after-tax yields than comparable
taxable investments. For example, if you're in the new 36% federal income
tax bracket and invest $10,000 in a taxable investment yielding 7%, you'll
pay $252 in federal taxes and receive $448 in income. That same $10,000
invested in a tax-free bond fund yielding 5.5% would allow you to keep $550
in income.
These are three investment strategies that could help lower your tax bill
in 1994. If you're interested in learning more, please call us at
1-800-544-8888 or visit a Fidelity Investor Center. We look forward to
talking with you.
Best regards,
Edward C. Johnson 3d, Chairman
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.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JANUARY 31, 1994 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND
Mortgage Securities 2.28% 6.72% 58.93% 136.11%
Salomon Brothers Mortgage
Index 2.43% 6.64% 68.27% n/a
Average U.S. Mortgage Fund 2.31% 6.75% 60.68% 134.62%
Consumer Price Index 1.25% 2.52% 20.73% 38.84%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, five years, or
since the fund started on December 31, 1984. For example, if you invested
$1,000 in a fund that had a 5% return over the past year, you would end up
with $1,050. To measure how the fund stacked up against its peers, you can
compare these figures to the Salomon Brothers Mortgage Index - a broad
measure of the performance of mortgage securities. You can also look at the
average U.S. mortgage fund, which reflects the performance of 47 U.S.
mortgage funds tracked by Lipper Analytical Services. These benchmarks
include reinvested dividends and capital gains, if any, and exclude the
effects of sales charges. Comparing the fund's performance to the consumer
price index helps show how your fund did compared to inflation.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JANUARY 31, 1994 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Mortgage Securities 6.72% 9.71% 9.91%
Salomon Brothers Mortgage Index 6.64% 10.97% n/a
Average U.S. Mortgage Fund 6.75% 9.93% 9.82%
Consumer Price Index 2.52% 3.84% 3.68%
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
Mortgage Sec. (040) SB Mortgage Index
12/31/84 10000.00 10000.00
01/31/85 10268.17 10239.00
02/28/85 10182.13 9998.38
03/31/85 10381.15 10262.34
04/30/85 10557.41 10500.43
05/31/85 10895.84 11110.50
06/30/85 11062.37 11307.16
07/31/85 11036.95 11272.11
08/31/85 11202.73 11475.00
09/30/85 11333.92 11603.52
10/31/85 11513.08 11894.77
11/30/85 11773.13 12227.83
12/31/85 11967.05 12566.54
01/31/86 12059.68 12615.55
02/28/86 12267.56 12963.73
03/31/86 12440.08 13154.30
04/30/86 12505.38 13258.22
05/31/86 12358.15 13006.31
06/30/86 12506.49 13194.91
07/31/86 12689.96 13454.85
08/31/86 12909.18 13719.91
09/30/86 12907.75 13740.49
10/31/86 13076.73 13927.36
11/30/86 13269.91 14215.65
12/31/86 13314.34 14255.46
01/31/87 13472.59 14465.01
02/28/87 13563.70 14598.09
03/31/87 13543.66 14576.19
04/30/87 13178.83 14147.65
05/31/87 13147.72 14102.38
06/30/87 13349.38 14340.71
07/31/87 13369.30 14395.21
08/31/87 13326.51 14330.43
09/30/87 12990.10 14000.83
10/31/87 13375.03 14460.05
11/30/87 13502.59 14663.94
12/31/87 13673.42 14834.04
01/31/88 14133.26 15409.60
02/29/88 14285.67 15594.52
03/31/88 14201.00 15479.12
04/30/88 14113.12 15383.15
05/31/88 14054.43 15349.31
06/30/88 14335.70 15734.57
07/31/88 14301.64 15685.80
08/31/88 14319.79 15718.74
09/30/88 14607.80 16092.84
10/31/88 14881.56 16459.76
11/30/88 14684.79 16224.38
12/31/88 14591.89 16140.02
01/31/89 14856.64 16443.45
02/28/89 14777.98 16318.48
03/31/89 14807.18 16323.38
04/30/89 15080.51 16610.67
05/31/89 15437.42 17155.50
06/30/89 15811.03 17591.25
07/31/89 16094.12 18008.16
08/31/89 15924.13 17743.44
09/30/89 15993.65 17867.64
10/31/89 16310.87 18285.75
11/30/89 16468.05 18483.23
12/31/89 16581.56 18586.74
01/31/90 16428.80 18452.91
02/28/90 16538.23 18528.57
03/31/90 16551.22 18604.54
04/30/90 16408.05 18431.52
05/31/90 16885.08 18991.83
06/30/90 17129.86 19305.20
07/31/90 17378.80 19633.39
08/31/90 17332.84 19472.39
09/30/90 17425.36 19630.12
10/31/90 17603.86 19836.24
11/30/90 17989.06 20278.58
12/31/90 18299.37 20613.18
01/31/91 18489.25 20914.13
02/28/91 18607.63 21047.98
03/31/91 18732.78 21201.63
04/30/91 18935.57 21422.13
05/31/91 19034.01 21606.36
06/30/91 19081.61 21630.13
07/31/91 19355.69 21995.68
08/31/91 19725.57 22398.20
09/30/91 20033.52 22828.24
10/31/91 20270.31 23179.80
11/30/91 20394.23 23339.74
12/31/91 20790.41 23836.88
01/31/92 20690.40 23593.74
02/29/92 20896.28 23815.52
03/31/92 20751.87 23710.73
04/30/92 20946.42 23926.50
05/31/92 21292.15 24371.53
06/30/92 21517.75 24668.87
07/31/92 21480.82 24866.22
08/31/92 21619.76 25201.91
09/30/92 21755.49 25395.97
10/31/92 21539.15 25182.64
11/30/92 21643.25 25285.89
12/31/92 21924.12 25594.38
01/31/93 22124.14 25947.58
02/28/93 22313.63 26186.30
03/31/93 22459.34 26343.41
04/30/93 22616.14 26522.55
05/31/93 22683.10 26644.55
06/30/93 22959.81 26903.01
07/31/93 23086.02 27013.31
08/31/93 23129.01 27124.06
09/30/93 23179.53 27148.47
10/31/93 23220.77 27238.06
11/30/93 23172.23 27189.04
12/31/93 23395.87 27392.95
01/31/94 23611.34 27669.62
$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity
Mortgage Securities Portfolio on December 31, 1984, when the fund started.
As the chart shows, by January 31, 1994, the value of your investment would
have grown to $23,611 - a 136.11% increase on your initial investment. For
comparison, look at how the Salomon Brothers Mortgage Index did over the
same period. With dividends reinvested, the same $10,000 investment would
have grown to $27,670 - a 176.70% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, 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)
INCOME
SIX MONTHS
ENDED
JANUARY 31, YEARS ENDED JANUARY 31,
1994 1993 1992 1991 1990 1989
Income return 2.82% 6.73% 7.64% 8.83% 8.37% 9.00%
Capital gain return 0.65% 0.00% 0.00% 0.00% 0.00% 0.00%
Change in share price -1.19% 0.74% 3.34% 2.55% -0.39% 3.53%
Total return 2.28% 7.47% 10.98% 11.38% 7.98% 12.53%
INCOME returns, capital gain returns, and changes in share price are all
part of a bond fund's total return. An income return reflects the dividends
paid by the fund. A capital gain return reflects the amount paid by the
fund to shareholders based on the profits realized from selling bonds that
have grown in value. Both returns assume the dividends or gains are
reinvested. Changes in the fund's share price include changes in the prices
of the bonds owned by the fund.
DIVIDENDS AND YIELD
PERIODS ENDED JANUARY 31, 1994 PAST 30 PAST 6 PAST 1
DAYS MONTHS YEAR
Dividends per share n/a 30.26(cents) 62.50(cents)
Annualized dividend rate n/a 5.57% 5.78%
Annualized yield 6.00% n/a n/a
DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on an average share price of $10.78 over
the past six months and $10.81 over the past year, you can compare the
fund's income over these two periods. The 30-day annualized YIELD is a
standard formula for all funds based on the yields of the bonds in the
fund, averaged over the past 30 days. This figure shows you the yield
characteristics of the fund's investments at the end of the period. It also
helps you compare funds from different companies on an equal basis.
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Kevin Grant, Portfolio Manager of Fidelity
Mortgage Securities Portfolio
Q. KEVIN, HOW DID THE FUND DO?
A. The fund had a total return of 2.28% for the six months ended January
31, 1994. That was slightly ahead of the average U.S. mortgage fund tracked
by Lipper Analytical Services, which returned 2.31% during the same period.
However, the fund lagged the Salomon Brothers Mortgage Index, which had a
2.43% total return. For the 12 months ended January 31, the fund returned
6.72%, compared to 6.75% for the average and 6.64% for the index.
Q. WHAT FACTORS INFLUENCED PERFORMANCE?
A. High levels of prepayments made the mortgage market a minefield of sorts
in 1993. I stepped right into the fray when I took over the fund at the end
of July. Falling interest rates were prompting homeowners to refinance
their mortgages left and right. The bonds at highest risk were those with
coupons - or stated interest rates - of 8 to 9%. Homeowners with those
mortgage rates were eager to refinance when rates fell to near 7% and
below. It turned out, even some mortgage bonds with 7.5 to 8% coupons were
at risk of prepayment. These were new mortgages, and often belonged to
homeowners who had refinanced before and were ready and willing to do it
again.
Q. WHAT WAS YOUR STRATEGY?
A. Prepayments aren't always negative. What hurts most is when they happen
more quickly, or more slowly, than investors expect. That means they're
happening more quickly (or slowly) than is already factored into the price
of the bond. Our numbers were telling us that Ginnie Maes had the highest
prepayment risk among mortgage securities. They were prepaying more quickly
than Fannie Maes or Freddie Macs. So I reduced the fund's stake in GNMAs,
from 29.6% of the fund on July 31 to 21.1% by the end of January. I also
reduced the fund's investments in bonds with coupons of 7 to 7.99% and 8 to
8.99%. As rates fell, those issues landed right in the middle of the
high-risk range for prepayments. Conversely, I boosted the percentage of
bonds with 6 to 6.99% coupons from 4.3% to 23.7% over the past six months.
These are the newest mortgages, and are usually less susceptible to
prepayments. (photo_of_portfolio_manager)
Q. YOU ALSO SLIGHTLY INCREASED THE FUND'S PERCENTAGE OF HIGHER-COUPON BONDS
- - - 10% OR HIGHER - OVER THE PAST SIX MONTHS. WHY?
A. Often, these are older bonds. The thinking is, if the homeowner hasn't
refinanced by now, there's probably a good reason for it, and it probably
won't happen. Often the balances of these loans are so small, it wouldn't
make financial sense to refinance. Other times, the homeowner may be facing
some type of financial dilemma - possibly the loss of a job or a decline in
the home's value - that makes it difficult to refinance anytime soon.
Whatever the situation, there are few of these issues left in the market.
Their yields are so attractive that if you sell them, there may not be a
chance to buy many more.
Q. DID ANYTHING ELSE HELP PERFORMANCE?
A. Yes, a very small but very important part of the fund - interest-only
securities, or IOs. These issues are sections of mortgages that are
"stripped" or divided into parts. The IOs receive their cash flow from
interest payments, as opposed to principal-only securities, or POs, which
derive their income from principal payments. IOs made up 2.2% of the fund
on January 31.
Q. WHAT DID IOS DO FOR THE FUND?
A. When I made the move toward the safer, lower-coupon securities I
mentioned earlier, I was buying bonds with longer maturities. Most were
close to 30 years because they were so new. That lengthened the fund's
average maturity, which, in turn, lengthened its duration. Duration
measures the fund's sensitivity to changes in interest rates. The longer
the fund's duration, the more its share price will drop as interest rates
rise (or rise as rates fall). So when rates are falling and bond prices are
rising, it pays to have a longer duration. But when rates are rising and
bond prices go down, as they did in late fall, it's better to have a
shorter duration. Because the fund's duration was lengthening - it was 6.5
years on January 31 - I needed a hedge against rising rates. A small
position in IOs gave me that hedge. They usually provide a very attractive
yield when rates are stable or rising, which can help offset the negative
effect of a longer duration under similar conditions.
Q. WERE THERE DISAPPOINTMENTS?
A. Sure. In late summer and early fall, I probably could have taken better
advantage of the very low short-term interest rates. Many of my competitors
owned a type of security called an inverse floater. Without going into
detail about how they work, these issues are, in effect, bets on the
stability of overall interest rates. If rates stay low, inverse floaters
can often yield between 9 and 12%. However, if rates go up, investors can
get hurt badly. I stayed away from these securities because I felt rates
were abnormally low, and I worried the Federal Reserve was considering
raising them. Also, inverse floaters aren't very liquid; they can be
difficult to sell quickly if rates begin to go up. But while it would have
been nice to have the income from inverse floaters this past fall, I'm glad
I didn't own them when the Fed raised rates in early February.
Q. WHAT'S YOUR OUTLOOK FOR THE FUND?
A. It's been a rough couple of years for mortgage investors, but I feel the
picture seems to be getting better. The falling interest rates we've seen
over the last year have helped Treasury bonds much more than mortgage
bonds, because of the prepayment factor. However, as rates stabilize or
rise slightly, as I believe they will, prepayments should slow and become
less of a factor. Add low inflation to the equation and you have an
excellent environment for mortgage investing.
FUND FACTS
GOAL: high current income
by investing at least 65% of
total assets in mortgage
securities
START DATE: December 31,
1984
SIZE: as of January 31,
1994, over $374 million
MANAGER: Kevin Grant, since
August 1993; vice president,
Morgan Stanley, 1991-1993;
investment director, Aetna
Bond Investors, 1985-1991
(checkmark)
KEVIN GRANT ON MORTGAGE
BOND INVESTING:
"I invest with a long-term
horizon, and work hard to avoid
unnecessary risk. If a bond
doesn't reward the fund well for
accepting risk, even if I feel the
risky element may not happen
for a while, I'll probably steer
clear. That said, I also look for
short-term trade possibilities.
Sometimes I feel the market
has priced certain instruments
incorrectly, and the fund can
profit from a quick buy and
sale. For example, adjustable
rate mortgages presented an
attractive opportunity in
January. I bought some for the
fund and sold them a week
later at a profit. So even though
I invest with a long-term
outlook, I try to take advantage
of the day-to-day opportunities
that can help enhance the
fund's performance."
(bullet) The fund's investment in
collateralized mortgage
obligations, or CMOs, was 5.7%
on January 31. CMOs are
essentially pools of mortgages
divided into short-, medium- and
long-term portions, allowing
investors to choose a time
frame appropriate to their goals.
The market often incorrectly
prices these instruments,
presenting attractive buying
opportunities.
(bullet) On January 31, 46.7% of the
fund's investments were in
bonds issued by the Federal
National Mortgage
Association, or Fannie Mae,
21.1% by the Government
National Mortgage
Association, or Ginnie Mae,
and 12.4% by the Federal
Home Loan Mortgage
Corporation, or Freddie Mac.
INVESTMENT CHANGES
COUPON DISTRIBUTION AS OF JANUARY 31, 1994
% OF FUND INVESTMENTS % OF FUND INVESTMENTS
6 MONTHS AGO
6 - 6.99% 23.7 4.3
7 - 7.99% 11.6 24.1
8 - 8.99% 10.9 25.0
9 - 9.99% 25.6 22.3
10 - 10.99% 3.6 2.9
11 - 11.99% 3.4 2.9
12 - 12.99% 2.4 2.8
13% and over 1.6 1.5
Zero coupon bonds 0.0 0.7
COUPON DISTRIBUTION SHOWS THE RANGE OF STATED INTEREST RATES ON THE FUND'S
INVESTMENTS, EXCLUDING REPURCHASE AGREEMENTS.
AVERAGE YEARS TO MATURITY AS OF JANUARY 31, 1994
6 MONTHS AGO
Years 6.5 3.8
AVERAGE YEARS TO MATURITY SHOWS THE AVERAGE TIME UNTIL THE PRINCIPAL ON THE
FUND'S BONDS IS EXPECTED TO BE REPAID, WEIGHTED BY DOLLAR AMOUNT.
DURATION AS OF JANUARY 31, 1994
6 MONTHS AGO
Years 2.4 1.9
DURATION SHOWS HOW MUCH A BOND'S PRICE FLUCTUATES WITH CHANGES IN INTEREST
RATES. IF RATES RISE 1%, FOR EXAMPLE, A BOND WITH A FIVE-YEAR DURATION WILL
LOSE ABOUT 5% OF ITS VALUE.
ASSET ALLOCATION
AS OF JANUARY 31, 1994 AS OF JULY 31, 1993
Row: 1, Col: 1, Value: 17.2
Row: 1, Col: 2, Value: 5.7
Row: 1, Col: 3, Value: 20.0
Row: 1, Col: 4, Value: 27.1
Row: 1, Col: 5, Value: 30.0
Mortgage-backed
securities 77.1%
Collateralized
mortgage obligations
(CMOs) 5.7%
Short-term and
other investments 17.2%
Mortgage-backed
securities 79.6%
Collateralized
mortgage obligations
(CMOs) 5.0%
Short-term and
other investments 15.4%
Row: 1, Col: 1, Value: 15.4
Row: 1, Col: 2, Value: 5.0
Row: 1, Col: 3, Value: 20.0
Row: 1, Col: 4, Value: 39.6
Row: 1, Col: 5, Value: 20.0
ASSET ALLOCATIONS IN THE PIE CHART ARE BASED ON TOTAL PORTFOLIO
INVESTMENTS, RATHER THAN NET ASSESTS.
INVESTMENTS JANUARY 31, 1994 (UNAUDITED)
Showing Percentage of Total Value of Investments
U.S. GOVERNMENT AGENCY - MORTGAGE-BACKED SECURITIES - 77.1%
PRINCIPAL VALUE (NOTE 1)
AMOUNT
FEDERAL HOME LOAN MORTGAGE CORPORATION - 12.4%
8%, 10/1/07 to 12/1/18 $ 1,825,884 $ 1,912,544
8 1/4%, 12/1/08 1,272,361 1,336,374
8 1/2%, 11/1/03 to 1/1/20 5,631,870 5,923,184
9%, 11/1/07 to 1/1/24 25,953,513 27,683,649
10%, 1/1/09 to 2/1/23 9,686,237 10,595,886
10 1/2%, 2/1/16 254,905 279,122
11 1/2%, 4/1/12 to 8/1/19 1,703,496 1,897,298
11 3/4%, 6/1/11 123,028 136,408
12 1/4%, 1/1/14 to 8/1/15 701,540 793,180
12 1/2%, 4/1/14 2,466 2,861
12 3/4%, 6/1/05 to 3/1/15 679,601 786,644
13%, 1/1/11 to 6/1/15 4,261,921 4,986,453
56,333,603
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 2.2%
605%, 8/25/10 (b) 114,390 1,487,075
9%, 1/25/17 to 2/25/17 (b) 48,261,036 8,264,703
9,751,778
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 41.4%
6%, 2/1/09 58,450,000 58,596,125
8 1/2%, 2/1/08 20,942,000 22,067,632
6 1/2%, 2/1/24 48,000,000 48,134,880
6 1/2%, 8/1/00 744,678 768,643
7%, 7/1/23 24,890 25,520
8%, 1/1/07 to 7/1/08 319,020 338,060
8 1/4%, 1/1/13 301,987 320,010
8 1/2%, 11/1/03 to 8/1/12 5,097,776 5,424,643
8 3/4%, 11/1/08 to 1/1/09 538,926 571,937
9%, 3/1/01 to 6/1/09 23,002,411 24,476,025
9 1/2%, 11/1/09 to 12/1/20 3,568,884 3,884,853
10%, 10/1/02 to 7/1/04 1,281,175 1,368,450
10 1/2%, 1/1/01 to 5/1/08 2,178,070 2,334,686
11%, 12/1/02 to 9/1/15 9,141,196 10,174,196
12%, 6/1/13 to 3/1/17 4,338,776 4,910,941
12 1/4%, 5/1/13 to 6/1/15 1,421,044 1,604,897
12 1/2%, 2/1/13 to 8/1/15 500,885 568,348
12 3/4%, 6/1/13 to 6/1/15 1,199,232 1,357,750
13 1/2%, 9/1/13 to 12/1/14 356,444 410,361
14%, 5/1/12 to 11/1/14 192,657 223,723
187,561,680
U.S. GOVERNMENT AGENCY - MORTGAGE-BACKED SECURITIES - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 21.1%
7%, 6/15/22 to 11/15/23 $14,409,746 $ 14,830,563
7 1/2%, 1/15/22 to 12/15/23 35,874,968 37,506,791
8%, 12/15/23 to 3/15/23 (a) 6,115,327 6,466,959
8 1/2%, 7/15/16 to 12/15/18 4,663,062 4,960,552
9%, 4/15/01 to 4/15/18 17,161,793 18,463,451
9 1/2%, 6/15/09 to 5/15/22 7,150,095 7,757,453
10 1/2%, 1/15/98 to 12/15/20 1,735,814 1,893,424
11%, 1/15/10 to 11/15/15 2,504,521 2,855,171
11 1/2%, 10/15/10 to 7/15/18 198,881 229,213
12%, 12/15/12 to 10/15/13 577,100 669,437
13 1/2%, 10/15/14 37,566 45,080
95,678,094
TOTAL U.S. GOVERNMENT AGENCY -
MORTGAGE-BACKED SECURITIES
(Cost $343,664,644) 349,325,155
U.S. GOVERNMENT AGENCY - COLLATERALIZED MORTGAGE OBLIGATIONS - 5.2%
FEDERAL HOME LOAN MORTGAGE CORPORATION - 2.1%
9%, 2/25/20 4,524,798 5,107,366
9.05%, 8/15/19 4,135,823 4,506,724
9,614,090
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 3.1%
9 1/2%, 3/25/18 6,997,877 7,780,800
9 1/2%, 12/1/20 5,355,144 6,016,183
13,796,983
TOTAL U.S. GOVERNMENT AGENCY -
COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $25,707,179) 23,411,073
COLLATERALIZED MORTGAGE OBLIGATIONS - 0.5%
MBNA Trust 9 1/2%, 10/25/20 (Cost $2,342,938) 2,242,046 2,272,180
REPURCHASE AGREEMENTS -17.2%
MATURITY VALUE (NOTE 1)
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations), in a
joint trading account at 3.19%
dated 1/31/94 due 2/1/94 $ 78,173,926 $ 78,167,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $449,881,761) $ 453,175,408
LEGEND
(a) Security sold on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
(b) Interest Only Strips represent the right to receive the monthly
interest payments on an underlying pool of mortgage loans. These securities
are subject to the risk of accelerated principal paydowns. The principal
amount represents the notional amount on which current interest is
calculated.
INCOME TAX INFORMATION
At January 31, 1994, the aggregate cost of investment securities for income
tax purposes was $449,881,861. Net unrealized appreciation aggregated
$3,293,547, of which $4,804,875 related to appreciated investment
securities and $1,511,328 related to depreciated investment securities.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
JANUARY 31, 1994 (UNAUDITED)
ASSETS
Investment in securities, at value (including repurchase $ 453,175,408
agreements of $78,167,000) (cost $449,881,761)
(Notes 1 and 2) - See accompanying schedule
Commitment to sell securities on a delayed delivery $ (6,188,189)
basis
Receivable for securities sold on a delayed delivery 6,131,531 (56,658)
basis (Note 2)
Receivable for investments sold, regular delivery 124,520,252
Interest receivable 2,680,498
TOTAL ASSETS 580,319,500
LIABILITIES
Payable to custodian bank $ 1,337,217
Payable for investments purchased 203,348,045
Payable for fund shares redeemed 195,781
Dividends payable 308,648
Accrued management fee 144,813
Other payables and accrued expenses 144,718
TOTAL LIABILITIES 205,479,222
NET ASSETS $ 374,840,278
Net Assets consist of (Note 1):
Paid in capital $ 370,219,197
Undistributed net investment income 2,379,788
Accumulated undistributed net realized gain (loss) on (995,696)
investments
Net unrealized appreciation (depreciation) on: 3,293,647
Investment securities
Delayed delivery (56,658)
NET ASSETS, for 34,757,430 shares outstanding $ 374,840,278
NET ASSET VALUE, offering price and redemption price per $10.78
share ($374,840,278 (divided by) 34,757,430 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JANUARY 31, 1994 (UNAUDITED)
INVESTMENT INCOME $ 15,091,546
Interest
EXPENSES
Management fee (Note 4) $ 916,658
Transfer agent fees (Note 4) 446,011
Accounting fees and expenses (Note 4) 85,637
Non-interested trustees' compensation 1,264
Custodian fees and expenses 51,999
Registration fees 19,449
Audit 24,566
Legal 2,112
Interest (Note 5) 640
Miscellaneous 3,725
TOTAL EXPENSES 1,552,061
NET INVESTMENT INCOME 13,539,485
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 471,972
(NOTES 1, 2 AND 3)
Net realized gain (loss) on investment securities
Change in net unrealized appreciation (depreciation) on: (4,931,132)
Investment securities
Delayed delivery commitments (56,658) (4,987,790)
NET GAIN (LOSS) (4,515,818)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM $ 9,023,667
OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED JANUARY JULY 31,
31, 1993
1994
(UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS
Operations $ 13,539,485 $ 30,772,023
Net investment income
Net realized gain (loss) on investments 471,972 1,875,336
Change in net unrealized appreciation (depreciation) (4,987,790) (1,885,193)
on
investments
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 9,023,667 30,762,166
FROM
OPERATIONS
Distributions to shareholders: (11,105,626) (27,846,286)
From net investment income
From net realized gain (2,607,932) -
TOTAL DISTRIBUTIONS (13,713,558) (27,846,286)
Share transactions 28,657,551 73,434,694
Net proceeds from sales of shares
Reinvestment of distributions from: 8,998,407 22,774,553
Net investment income
Net realized gain 2,283,597 -
Cost of shares redeemed (79,876,742) (120,772,663)
Net increase (decrease) in net assets resulting from (39,937,187) (24,563,416)
share
transactions
TOTAL INCREASE (DECREASE) IN NET ASSETS (44,627,078) (21,647,536)
NET ASSETS
Beginning of period 419,467,356 441,114,892
End of period (including undistributed net investment $ 374,840,278 $ 419,467,356
income of $2,379,788 and $10,956,070,
respectively)
OTHER INFORMATION
Shares
Sold 2,662,022 6,802,713
Issued in reinvestment of distributions from: 834,875 2,109,625
Net investment income
Net realized gain 211,642 -
Redeemed (7,416,606) (11,183,805)
Net increase (decrease) (3,708,067) (2,271,467)
</TABLE>
FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED JULY 31,
ENDED
JANUARY 31,
1994
(UNAUDITED) 1993 1992 1991 1990 1989
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
Net asset value, $ 10.910 $ 10.830 $ 10.480 $ 10.220 $ 10.260 $ 9.910
beginning of
period
Income from .372 .788 .808 .861 .896 .875
Investment
Operations
Net investment
income
Net realized and (.129) (.007) .313 .255 (.119) .306
unrealized gain
(loss) on
investments
Total from .243 .781 1.121 1.116 .777 1.181
investment
operations
Less Distributions (.303) (.701) (.771) (.856) (.817) (.831)
From net interest
income
From net realized (.070) - - - - -
gain on
investments
Total distributions (.373) (.701) (.771) (.856) (.817) (.831)
Net asset value, $ 10.780 $ 10.910 $ 10.830 $ 10.480 $ 10.220 $ 10.260
end of period
TOTAL RETURN(dagger) 2.28% 7.47 10.98 11.38 7.98 12.53
% % % % %
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of $ 374,480 $ 419,467 $ 441,115 $ 410,303 $ 387,426 $ 420,969
period (000s
omitted)
Ratio of expenses .78%* .76 .80 .82 .82 .88
to average net % % % % %
assets
Ratio of net interest 6.78%* 7.18 7.57 8.39 8.78 8.72
income to % % % % %
average net
assets
Portfolio turnover 382%* 278 146 209 110 271
rate % % % % %
</TABLE>
* ANNUALIZED
(dagger) TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
NOTES TO FINANCIAL STATEMENTS
For the period ended January 31, 1994 (Unaudited)
1. SIGNIFICANT ACCOUNTING
POLICIES.
Fidelity Mortgage Securities (the fund) is a fund of Fidelity 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 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. Mortgage security paydown gains
(losses) are taxable as ordinary income and, therefore, increase (decrease)
taxable ordinary income available for distribution.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
mortgage-backed securities and losses deferred due to futures and options
excise tax regulations. The fund also utilized earnings and profits
distributed to shareholders on redemption of shares as a part of the
dividends paid deduction for income tax purposes. Permanent book and tax
basis differences relating to shareholder distributions will result in
reclassifications 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.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
CHANGE IN ACCOUNTING FOR DISTRIBUTIONS TO SHAREHOLDERS. Effective August 1,
1993, the fund adopted Statement of Position 93-2: Determination,
Disclosure, and Financial Statement Presentation of Income, Capital Gain,
and Return of Capital Distributions by Investment Companies. As a result,
the fund changed the classification of distributions to shareholders to
better disclose the differences between financial statement amounts and
distributions determined in accordance with income tax regulations.
Accordingly, amounts as of July 31, 1993 have been reclassified to reflect
a decrease in paid in capital of $356,945, a decrease in undistributed net
investment income of $11,010,141 and a decrease in accumulated net realized
loss on investments of $11,367,086.
2. OPERATING POLICIES.
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. The fund's investment
adviser, Fidelity Management & Research Company (FMR), is responsible
for determining that the value of these underlying securities remains at
least equal to the resale price.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other registered
investment companies having management contracts with FMR, may transfer
uninvested cash balances into a joint trading account. These balances are
invested in one or more repurchase agreements that are collateralized by
U.S. Treasury or Federal Agency obligations.
DELAYED DELIVERY TRANSACTIONS. The fund may purchase or sell securities on
a when-issued or forward commitment basis. Payment and delivery may take
place a month or more after the date of the transaction. The price of the
underlying securities and the date when the securities will be delivered
and paid for are fixed at the time the transaction is negotiated. The fund
may receive compensation for interest forgone in a delayed delivery
transaction. The fund identifies securities as segregated in its custodial
records with a value at least equal to the amount of the purchase
commitment.
3. PURCHASES AND SALES OF
INVESTMENTS.
Purchases and sales of U.S. government and government agency obligations
aggregated $1,040,003,584 and $935,486,031, respectively.
4. FEES AND OTHER
TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly
fee that is calculated on the basis of a group fee rate plus a fixed
individual fund fee rate applied to the
4. FEES AND OTHER
TRANSACTIONS WITH AFFILIATES - CONTINUED
MANAGEMENT FEE - CONTINUED
average net assets of the fund. The group fee rate is the weighted average
of a series of rates ranging from .1325% to .37% and is based on the
monthly average net assets of all the mutual funds advised by FMR. The
annual individual fund fee rate is .30%. For the period, the management fee
was equivalent to an annualized rate of .46% of average net assets.
The Board of Trustees approved a new group fee rate schedule with rates
ranging from .1325% to .3700%. Effective November 1, 1993, FMR has
voluntarily agreed to implement this new group fee rate schedule as it
results in the same or a lower management fee.
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 $12,943 for the
period.
TRANSFER AGENT FEE. FSC, an affiliate of FMR, is the fund's transfer,
dividend disbursing and shareholder servicing agent. FSC receives fees
based on the type, size, number of accounts and the number of transactions
made by shareholders. FSC pays for typesetting, printing and mailing of all
shareholder reports, except proxy statements.
ACCOUNTING FEE. FSC, an affiliate of FMR, 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.
5. 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 balances during the periods for
which loans were outstanding amounted to $6,700,000. The weighted average
interest rate was 3.44%. Interest expense includes $640, paid under the
bank borrowing program.
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)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)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. FOR MORE
INFORMATION ON ANY
FIDELITY FUND INCLUDING MANAGEMENT FEES AND CHARGES, CALL 1-800-544-8888
FOR A FREE
PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
TO VISIT FIDELITY
For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 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
2249 Galiano Street
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
1 West Pennsylvania Ave.
Towson, MD
7401 Wisconsin Avenue
Bethesda, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
101 Cambridge Street
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
26955 Northwestern Hwy.
Southfield, MI
MINNESOTA
38 South Sixth Street
Minneapolis, MN
MISSOURI
700 West 47th Street
Kansas City, 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
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
1903 East Ninth Street
Cleveland, OH
28699 Chagrin Boulevard
Woodmere Village, 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
1010 Lamar Street
Houston, TX
2701 Drexel Drive
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
UTAH
175 East 400 South 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
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Arthur S. Loring, Secretary
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
CUSTODIAN
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)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
