(PUB) Morningstar FundInvestor

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July 2 014

Morningstar FundInvestor

Data through June 30, 2014 Fidelity Total Bond

Ticker Status Yield SEC Yield Total Assets Mstar Category FTBFX Open 2.9% 2.44% $15,127 mil Intermediate-Term Bond

Morningstar Analyst Rating 06-06-14

Investment Style Fixed Income Income Rtn %Rank Cat

Historical Profile Return Risk Rating Above Avg Above Avg Above Avg

Manager Change Partial Manager Change

14.0 16.0 18.0

Morningstar Pillars Process Performance

∞ ∞ ∞ ∞ ∞

Positive Positive Positive Positive Positive

Growth of $10,000

NAV Total Return % +/-BC Agg Bnd +/-BC Agg Bnd Income Return % Capital Return % Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil Total Rtn % Rank Cat Income $ Investment Values of Fund Investment Values of BC Agg Bnd Performance Quartile (within Category) History

12.0

People Parent Price

10.0

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 06-14

Morningstar Analyst Rating Morningstar evaluates mutual funds based on five key pillars, which its analysts believe lead to funds that are more likely to outperform over the long term on a risk-adjusted basis. Analyst Rating Spectrum Œ „ ´ˇ ¨

10.52

10.63

10.42 2.46 0.03 0.03 4.10 -1.64

10.45

10.33

9.20 -5.56

10.47 19.80 13.87 13.87

10.72

10.92 7.40 -0.44 -0.44 3.82 3.58

10.95

10.44 -0.92 1.10 1.10 2.78 -3.70

10.74

5.87 1.77 1.77 3.02 2.85 0.31 0.06 0.65 2.77 336 300 26

5.47 1.13 1.13 3.52 1.95 0.36 0.09 0.65 3.25 7

5.15 0.82 0.82 4.62 0.53 0.47 0.02 0.45 4.95 13

4.13

8.55 2.01 2.01 4.15 4.40 0.42 0.21 0.45 4.37 130 29

6.51 2.30 2.30 2.97 3.54 0.32 0.36 0.45 3.29 155 53

4.34 0.41 0.41 1.45 2.89 0.15 0.00 39

-10.80 -2.84 -10.80 -2.84

5.07

5.03

5.34

-10.59 -0.94

14.46

Pillar Spectrum Positive ∞

0.43 0.04 0.61 3.87 193 497

0.52 0.03 0.45 5.25 116

0.51 0.07 0.45 5.12 122

0.48 0.03 0.45 5.52 104

0.40 0.18 0.45 3.89 168

0.30 0.11 0.45 2.75 201

§ Negative

¶ Neutral

. . .

Performance 06-30-14 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total 8.55 7.40 6.51

. 366

2010 2011 2012 2013 2014

2.55 2.76 1.08 2.18 1.26 2.20 0.30 -2.50

3.29 -0.28 2.16 1.78 2.33 0.58

3,003

9,221

13,902 11,611 12,894 11,937 10,956 11,443 8,280

Portfolio Analysis 05-31-14

Rating and Risk Time Load-Adj

0.84 0.47 -0.92

2.17

Date of Maturity

Amount

Value % Net $000 Assets

Morningstar

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

. . . .

Period Return % Rtn vs Cat

Total Fixed-Income:1052

$000

1 Yr 3 Yr 5 Yr

5.71 4.61 6.88 5.53 5.55

Trailing

Total

+/- BC

+/- BC %Rank Growth of

US Treasury Note 1.25% US Treasury Note 2.25% US Treasury Note 2.75% Fidelity Cent Invt Portf Fannie Mae 3% 30 Year Fannie Mae 4% 30 Year Fannie Mae 3.5% 30 Year US Treasury Note 1.5% US Treasury Note 1.375% US Treasury Note 1.625% US Treasury Note 0.875% US Treasury Note 1.375% US Treasury Note 0.875% US Treasury Note 0.75% US Treasury Bond 3.625% US Treasury Note 1% Verizon Comms 6.55%

10-31-18 786,376 776,669 5.82 03-31-21 473,646 474,497 3.56 02-15-24 451,742 455,483 3.42

Return% Agg Bnd Agg Bnd

Cat

$10,000

+Avg +Avg +Avg

Avg Avg

3 Mo 6 Mo 1 Yr

2.12 0.08 4.34 0.41 5.71 1.34 4.61 0.95 6.88 2.03 5.53 0.60

0.08 0.41 1.34 0.95 2.03 0.60

47 10,212 39 10,434 33 10,571 31 11,448 26 13,947

10 Yr Incept

+Avg

3,988 431,811 3.24 366,300 357,613 2.68 336,184 352,512 2.64 338,733 342,392 2.57

3 Yr Avg 5 Yr Avg 10 Yr Avg 15 Yr Avg

Other Measures

Standard Index

Best Fit Index

BC Agg Bnd

BC US Universal

20 17,130 . . . . . Tax Analysis Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat

Alpha

1.0

0.1

01-31-19 321,637 319,878 2.40 07-31-18 302,602 301,845 2.26 03-31-19 276,810 276,291 2.07 04-30-17 203,188 203,188 1.52 09-30-18 203,561 202,432 1.52 01-31-18 192,574 190,046 1.42 02-28-18 178,380 174,938 1.31 02-15-44 147,770 152,111 1.14 05-31-18 123,485 121,671 0.91 09-15-43 98,171 120,935 0.91

Beta

0.97

1.06

R-Squared

3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated)

2.93 5.10 3.74

36 30 24

1.61 1.66 1.70

88 84 82

Standard Deviation

2.92 4.61 1.54

Mean

Sharpe Ratio

Potential Capital Gain Exposure: 3% of assets

Morningstar’s Take by Sarah Bush 06-06-14 Fidelity Total Bond puts its family s many resources to good use. One of several Fidelity entrants in the intermediate-term bond category, this fund distinguishes itself with its relatively wide-ranging mandate. Manager Ford O’Neil keeps the fund s duration close to that of its Barclays U.S. Aggregate Bond benchmark but is more adventurous when it comes to credit risk. The fund has the flexibility to buy emerging-markets bonds and can invest up to 20% in below-investment-grade debt. (This represents a slight widening of the fund s investment universe; prior to mid-2013, the fund was limited to a combined 20% stake in high-yield and emerging-markets fare.) This flexibility is in good hands. For starters, O Neil, a Fidelity veteran, draws on the firm s deep bench of managers and analysts, including its well-respected government and high-yield teams, for input on valuations and security selection. O Neil has a solid track record of adjusting the fund s sector weightings. For example, he took advantage of 2008 s credit crisis

to build a nearly 20% combined stake in battered emerging-markets and junk bonds and the fund roared back in 2009. He then trimmed risk enough to miss the worst of 2011 s rocky third quarter. As of spring 2014, O Neil argued that credit offered the best opportunity in what he viewed as a richly priced fixed-income market. As a result, the fund looked aggressive by historical standards, featuring an overweighting to corporates (33% as of April 2014) relative to the benchmark, including a 13% stake in high yield; emerging markets accounted for another 5%. Meanwhile O Neil was particularly cautious on agency mortgages, which at 19% represent a sizable underweighting relative to the index. The fund s taste for credit risk leaves it vulnerable to losses when the economy slows or markets experience a flight to quality. However, over time shareholders have been well-rewarded: The fund s 5.6% annualized gain over O Neil s 14-year tenure outpaces 75% of its peers. Add in a cheap price tag and it earns a Morningstar Analyst Rating of Gold.

GNMA 3.5% GNMA 4.5%

113,195 116,589 0.87 98,188 107,026 0.80 98,605 106,275 0.80

Fannie Mae 4.5% 30 Year

Sector Breakdown

% of assets

Current Investment Style

US Treasury

Duration Ltd Mod Ext

Non US Government Government Related

2 4

Quality High Med Low

Corporate 30 Agency MBS Pass-Through 11 Agency MBS ARM 0 Agency MBS CMO 2 Non-Agency Residential MBS 3 Commercial MBS 4 Asset-Backed 1 Municipal 2 Cash & Equivalents 8 Other 0 Composition - Net Cash 6.3 Bonds 90.5 Stocks 0.0 Other 3.3

figure provided by fund

1 Avg Eff Duration Avg Eff Maturity Avg Credit Quality Avg Wtd Coupon Avg Wtd Price Coupon Range

5.1 Yrs

. BBB

3.54%

112.43% of par

% of Bonds Rel Cat

0% PIK 0% to 6% 6% to 8% 8% to 10%

0.1 0.0 88.9 1.1 9.6 0.8 1.1 0.4 0.2 0.4

More than 10%

Address:

Fidelity Income Fund Boston, MA 02109 800-544-8544 advisor.fidelity.com

Minimum Purchase: Min Auto Inv Plan:

$2500 $2500

Add: $0 IRA: $2500

1.00=Category Average

Add: .

Credit Analysis

Special Securities Restricted/Illiquid Secs Exotic Mortgage-Backed Emerging-Markets Secs Options/Futures/Warrants

% bonds 05-31-14

Sales Fees:

No-load 0.31% 3Yr:$144 Monthly

AAA

7 0 5

Web Address: Inception: Advisor: Subadvisor: NTF Plans:

Management Fee:

B 4 Below B 1 NR/NA 0

10-15-02

Actual Fees:

Mgt:0.31% Dist: .

Fidelity Management & Research Company

Expense Projections: Income Distribution:

5Yr:$252 10Yr:$567

12 18

FMR Co., Inc. (FMRC)

BBB

Fidelity Retail-NTF, CommonWealth NTF

Mutual Funds ß ®

© 2014Morningstar, Inc.All rights reserved. The information herein isnot representedorwarranted tobe accurate, correct, completeor timely.Pastperformance isnoguaranteeof future results.Accessupdated reports at To order reprints, call 312-696-6100. mfb.morningstar.com.

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