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Morningstar FundInvestor

August 2 013

Data through July 31, 2013 Fidelity Total Bond

Ticker Status Yield SEC Yield Total Assets Mstar Category FTBFX Open 2.6% 2.73% $12,793 mil Intermediate-Term Bond

Morningstar Analyst Rating 07-31-13

Investment Style Fixed Income Income Rtn %Rank Cat

Historical Profile Return Risk Rating Above Avg Average Above Avg

Manager Change Partial Manager Change

14.0 16.0 18.0

Morningstar Pillars Process Performance

Positive Positive Positive Neutral Positive

Growth of $10,000

Investment Values of Fund Investment Values of BC Agg Bnd Performance Quartile (within Category) History

12.0

People Parent Price

10.0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 07-13

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 ¨

10.29

10.52 5.87 1.77 -0.10 3.02 2.85

10.63

10.42 2.46 0.03 0.63 4.10 -1.64

10.45

10.33

9.20 -5.56

10.47 19.80 13.87 13.30

10.72 8.55 2.01 -0.87 4.15 4.40

10.92 7.40 -0.44 -3.39 3.82 3.58

10.95 6.51 2.30 -0.70 2.97 3.54

10.58 -1.90 0.41 1.43 1.51 -3.41

NAV

3.42*

5.47 1.13 0.17 3.52 1.95 0.36 0.09 0.65 3.25 7

5.15 0.82 1.34 4.62 0.53 0.47 0.02 0.45 4.95 13

4.13

Total Return % +/-BC Agg Bnd

-10.80 -2.84 -10.62 -3.42

. . . . .

+/-Barcap 5-10 Yr Gov

5.07

5.03

5.34

Income Return % Capital Return %

-10.59 -0.94

14.46

Total Rtn % Rank Cat

Pillar Spectrum Positive

0.05 0.00

0.31 0.06 0.65 2.77 336 300

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

0.42 0.21 0.45 4.37 130

0.40 0.18 0.45 3.89 168

0.32 0.36 0.45 3.29 155

0.16 0.00

Income $

§ Negative

¶ Neutral

Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil

. . . 45

. . .

Performance 07-31-13 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total

. 366

2009 2010 2011 2012 2013

2.38 7.71 2.55 2.76 1.08 2.18 1.26 2.20 0.30 -2.50

6.68 1.83 19.80

3,003

9,221

11,864 12,894 11,937 10,956 11,443 8,280

3.29 -0.28 2.16 1.78 2.33 0.58

8.55 7.40 6.51

Portfolio Analysis 06-30-13

Rating and Risk Time Load-Adj

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:963

$000

1 Yr 3 Yr 5 Yr

-0.69 4.45 6.59 5.45 5.52

Trailing

Total

+/- BC +/- Barcap %Rank Growth of

US Treasury Note 1.375% Fannie Mae 3% 30 Year Fannie Mae 3.5% 30 Year Fidelity Cent Invt Portf US Treasury Note 1% US Treasury Note 2.375% US Treasury Note 2% US Treasury Note 1.75% Fannie Mae 4% 30 Year US Treasury Bond 3.125% US Treasury Note 0.25% US Treasury Note 0.875% US Treasury Note 0.875% Fannie Mae 4.5% 30 Year US Treasury Note 0.125%

05-31-20 576,425 555,890 4.62

Return% Agg Bnd 5-10 Yr Gov

Cat

$10,000

+Avg +Avg +Avg

Avg

547,937 535,590 4.45 449,457 453,807 3.77 3,823 404,865 3.36

3 Mo 6 Mo 1 Yr

-3.34 -0.17 -1.48 0.14 -0.69 1.22 4.45 1.26 6.59 1.36 5.45 0.56

1.52 0.89 1.37 -0.27 -0.28 -0.37

41 9,666 31 9,852 49 9,931 30 11,395 29 13,759

+Avg

10 Yr Incept

Avg

05-31-18 408,858 401,671 3.34 02-28-15 374,922 387,839 3.22 02-15-23 325,698 313,205 2.60 05-31-16 263,340 271,569 2.26 02-15-43 268,625 251,081 2.09 08-15-15 227,529 226,694 1.88 04-30-17 203,188 202,125 1.68 01-31-18 192,574 189,069 1.57 247,019 257,606 2.14

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

23 17,001 . . . . . Tax Analysis Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat

Alpha

1.5

0.6

Beta

0.92

1.02

R-Squared

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

2.64 4.71 3.68

34 28 25

1.74 1.76 1.68

84 77 76

Standard Deviation

2.86 4.45 1.51

Mean

Sharpe Ratio

Potential Capital Gain Exposure: 1% of assets

171,144 181,992 1.51

Morningstar’s Take by Sarah Bush 07-31-13 Fidelity Total Bond is a keeper. One of several Fidelity entrants in the intermediate-term bond category, this fund shares many strengths with its siblings. For starters, it boasts an experienced investment team, anchored here by eight-year veteran manager Ford O’Neil. The fund’s risk-conscious and valuation-sensitive strategy will also look familiar as will its cheap price tag. Where this fund distinguishes itself is in its relatively wide-ranging mandate. O’Neil has the flexibility to invest up to 20% in the so-called "plus" sectors (that don’t appear in the Barclays U.S. Aggregate Index) of high-yield, emerging-markets debt and floating-rate bank loans. But while the fund’s adventurous ways can leave it exposed when credit markets sell off--the fund fell 5.6% in 2008--O’Neil has generally made good use of this flexibility. The fund came roaring back in 2009, after O’Neil built up a combined stake in battered emerging-markets and high-yield debt to near the portfolio’s 20% limit. He had trimmed this position to 12%-14% of assets by

04-30-15 150,334 149,747 1.24

mid-2011, a move that helped the fund weather that year’s turbulent third quarter, as did an overweighting to the 30-year Treasury. After spending the latter part of 2012 in a relatively cautious stance, O’Neil has recently taken a more aggressive tack. As of June 2013, the fund dedicated a third of the portfolio to corporates, up from roughly 25% in fall 2012; O’Neil noted that he took advantage of the June 2013 sell-off to buy junk bonds (12%). That, together with 4% in emerging markets, left it with a 16% plus stake, relatively high by historical standards. After carrying a high double-digit position in mortgages earlier in the year, he recently increased exposure there, which stood at 27% as of June. It isn’t invincible. It lost 1.8% for the year to date through late July 2013 despite some well-timed adjustments to the mortgage portfolio and a decision to unload its Treasury Inflation-Protected Securities stake. However, its 5.3% annualized return under O’Neil’s tenure outpaces 70% of its peers’, and it remains a top choice.

GNMA 3.5% GNMA 4.5% GNMA 5%

140,041 143,733 1.19 129,454 138,613 1.15

08-15-33 121,745 132,262 1.10

Freddie Mac 3.5% 30 Year

128,667 130,353 1.08 119,354 126,480 1.05

FHLB 4.5%

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 29 Agency MBS Pass-Through 18 Agency MBS ARM 0 Agency MBS CMO 3 Non-Agency Residential MBS 2 Commercial MBS 4 Asset-Backed 1 Municipal 2 Cash & Equivalents 7 Other 0 Composition - Net Cash 6.3 Bonds 90.2 Stocks 0.0 Other 3.4

figure provided by fund

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

5.4 Yrs

. BBB

3.66%

102.59% of par

% of Bonds Rel Cat

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

0.1 0.0 88.7 1.1 10.0 0.8 0.9 0.3 0.3 0.5

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 06-30-13

Sales Fees:

No-load 0.20% 3Yr:$144 Monthly

AAA

6 0 4

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

Management Fee:

B 5 Below B 1 NR/NA 1

10-15-02

Actual Fees:

Mgt:0.32% Dist: .

Fidelity Management & Research Company

Expense Projections: Income Distribution:

5Yr:$252 10Yr:$567

11 17

FMR Co., Inc. (FMRC)

BBB

Fidelity Retail-NTF, CommonWealth NTF

Mutual Funds ß ®

© 2013Morningstar, Inc.All rights reserved. The information herein isnot representedorwarranted tobe accurate, correct, complete or timely. Pastperformance is no guarantee of future results.Access updated reports at To order reprints, call 312-696-6100. mfb.morningstar.com.

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