Fidelity Strategic Income Fund

QUARTERLY FUND REVIEW | AS OF MARCH 31, 2023

Fidelity? Strategic Income Fund

Investment Approach

? Fidelity? Strategic Income Fund is a multi-asset-class strategy that seeks high current income, and potentially also capital appreciation, by investing in a diversified mix of fixed-income securities.

? The fund's assets are allocated among domestic high-yield bonds (including floating-rate debt), U.S. government securities, emerging-markets debt and foreign developed-markets securities, using a target weighting of 45%, 30%, 15% and 10%, respectively. This strategic allocation attempts to take advantage of the low correlation among these fixed-income segments with a goal of optimizing total returns while containing volatility over time.

? Specialized subportfolio managers are responsible for security selection in their respective areas of expertise and represent the primary source of alpha (risk-adjusted excess return), while the lead portfolio managers have the flexibility to make tactical allocation shifts around the target mix to help manage risk and capitalize on relative-value opportunities.

PERFORMANCE SUMMARY

Fidelity Strategic Income Fund Gross Expense Ratio: 0.68%2

Cumulative

3 Month

YTD

1 Year

Annualized

3 Year

5 Year

10 Year/ LOF1

3.14% 3.14% -3.81% 3.84% 2.09% 2.88%

Bloomberg US Universal Bond Index Fidelity Strategic Income Composite Index Morningstar Fund Multisector Bond % Rank in Morningstar Category (1% = Best) # of Funds in Morningstar Category

2.93% 3.18% 2.37%

---

2.93% 3.18% 2.37%

---

-4.61% -3.78% -3.67%

52% 345

-2.02% 1.33% 3.13% 32%

287

1.05% 1.46% 1.47% 28%

250

1.62% 2.40% 2.34% 29%

154

1 Life of Fund (LOF) if performance is less than 10 years. Fund inception date: 10/31/1994. 2 This expense ratio is from the most recent prospectus and generally is based on amounts incurred during the

most recent fiscal year, or estimated amounts for the current fiscal year in the case of a newly launched fund. It does not include any fee waivers or reimbursements, which would be reflected in the fund's net expense ratio.

Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate; therefore, you may have a gain or loss when you sell your shares. Current performance may be higher or lower than the performance stated. Performance shown is that of the fund's Retail Class shares (if multiclass). You may own another share class of the fund with a different expense structure and, thus, have different returns. To learn more or to obtain the most recent month-end or other share-class performance, visit performance, institutional., or . Total returns are historical and include change in share value and reinvestment of dividends and capital gains, if any. Cumulative total returns are reported as of the period indicated.

For definitions and other important information, please see the Definitions and Important Information section of this Fund Review.

FUND INFORMATION

Manager(s): Adam Kramer Ford O'Neil

Trading Symbol: FADMX

Start Date: October 31, 1994

Size (in millions): $13,043.95

Morningstar Category: Fund Multisector Bond Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Fixed income investments entail interest rate risk (as interest rates rise bond prices usually fall), the risk of issuer default, issuer credit risk and inflation risk. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks, all of which are magnified in emerging markets. Although a forward foreign currency exchange contract is used to reduce or hedge a fund's exposure to changes in the value of the currency, suitable hedging transactions may not be available, may not be successful, and may eliminate any benefits to the fund from favorable foreign currency fluctuations. Lowerquality bonds can be more volatile and have greater risk of default than higherquality bonds. Leverage can increase market exposure and magnify investment risk.

Not FDIC Insured ? May Lose Value ? No Bank Guarantee

QUARTERLY FUND REVIEW: Fidelity? Strategic Income Fund | AS OF MARCH 31, 2023

Market Review

Financial markets encountered multiple crosscurrents in the first quarter. These included stress in the U.S. and European banking systems, downtrending but persistent inflationary pressure and falling energy prices. Investors also saw a Federal Reserve intent on pulling off a delicate balancing act of containing inflation and cooling economic growth, while also weighing risk to the financial system. It resulted in a volatile quarter for fixed-income investments.

U.S. taxable investment-grade bonds, as measured by the Bloomberg U.S. Aggregate Bond Index, gained 2.96% in the quarter. The positive return followed a year in which the Aggregate index returned -13.01% ? its worst-ever calendar-year result. In the first quarter, we saw a continuation of the rally in risk assets that started the previous quarter, when slowing inflation raised market hopes for easier monetary policy and the Fed proceeded to communicate its intent to moderate the pace of its rate hikes.

In all, since March 2022, the Fed has raised its benchmark interest rate nine times, by 4.75 percentage points, while also shrinking its agency mortgage and Treasury portfolio. The emergence of stress in the banking system following the failure of two regional banks ? Silicon Valley Bank on March 10, and Signature Bank on March 12 ? compelled the Fed to further slow the pace of its monetary tightening campaign. On March 22, with Treasury yields plunging, the central bank raised its benchmark rate by 25 basis points (0.25 percentage points), rather than the 50-basis-point move that was all but certain just a week before.

The failures of SVB and Signature, and the takeover of Credit Suisse by UBS, led to broader concerns about the possibility of further contagion within the banking system. This resulted in underperformance across the banking sector for the quarter, but the

broader bond market shook off the anxiety and the Aggregate index advanced 2.54% in March after declining by roughly the same amount in February, when new inflation and jobs data indicated the market was still running hot.

Against this backdrop, bond valuations fluctuated considerably but ended up posting widespread gains for the quarter. After tightening in January, credit spreads widened in February and March amid heightened volatility.

Overall, the Fidelity Strategic Income Composite IndexSM rose 3.18% in the first quarter. Performance gains in January (+3.14%) and March (+1.72%) bookended a -1.67% return for the index in February. In order of weighting, the Composite index consists of five fixed-income asset classes: domestic high-yield bonds (including floating-rate debt), U.S. government securities, emerging-markets debt and foreign developed-markets securities.

High yield bonds, as measured by the ICE BofA U.S. High Yield Constrained Index, advanced 3.72% in Q1, outpacing the 2.98% increase in government securities, according to the Bloomberg U.S. Government Bond Index. The high-yield bond market enjoyed a strong uptick in January (+3.91%), then lost ground in February (-1.79%) before rallying in March (+1.11%).

Outside the U.S., foreign developed-markets bonds, as measured by the Bloomberg Global Aggregate Developed Markets ex USD GDP Weighted Index (Hedged), rose 3.06%, whereas emergingmarkets debt, according to the Bloomberg Emerging Markets Aggregate USD Bond Index, increased 2.15%. Lastly, the Morningstar LSTA U.S. Performing Loans index, a measure of floating-rate debt performance, gained 3.32%.

THREE-MONTH RETURNS

Asset Class High-Yield Bonds1

Total Return 3.72%

U.S. Government Securities2

2.98%

Foreign Developed-Markets Debt3

3.06%

Emerging-Markets Debt4

2.15%

Floating-Rate High-Yield Debt5

3.32%

1ICE BofA US High Yield Constrained Index 2Bloomberg US Government Bond Index 3Bloomberg Global Aggregate Developed Markets ex USD GDP Weighted Index Hedged to USD 4Bloomberg Emerging Markets Aggregate USD Bond Index 5Morningstar LSTA US Performing Loans

2 | For definitions and other important information, please see Definitions and Important Information section of this Fund Review.

QUARTERLY FUND REVIEW: Fidelity? Strategic Income Fund | AS OF MARCH 31, 2023

Performance Review

DETAILED FUND ATTRIBUTION RELATIVE TO BENCHMARK

Strategy: Asset Allocation

High-Yield Bonds

The fund experienced little meaningful relative performance impact from this asset class during Q1. (Neutral)

U.S. Government Securities

The portfolio's allocation to U.S. government securities was essentially neutral compared with the Composite index. (Neutral)

Foreign Developed-Markets Debt

A significantly smaller-than-index stake in this lagging segment of the fixed-income market slightly added to the fund's relative return this period. (Slight Positive)

Emerging-Markets Debt

The portfolio's nearly neutral exposure to this category resulted in no meaningful effect on the fund's relative performance in Q1. (Neutral)

Floating-Rate High-Yield Debt

An overweight in this asset class modestly added to the portfolio's relative result the past three months, since the category slightly outperformed the Composite index. (Slight Positive)

Strategy: Security Selection

High-Yield Bonds

High-yield bond security selection aided the fund's relative performance, as picks within this subportfolio outpaced the category benchmark, particularly in the technology & electronics and media segments. (Positive)

U.S. Government Securities

Picks among U.S. government bonds, including an out-of-index position in U.S. Treasury futures, contributed to the portfolio's relative result this past quarter. (Positive)

Foreign Developed-Markets Debt

Positioning in this subportfolio detracted, especially in Japan and, to a lesser extent, Sweden and the U.S. (Slight Negative)

Emerging-Markets Debt

Picks in this category modestly detracted from the fund's relative result this quarter. (Slight Negative)

Floating-Rate High-Yield Debt

The floating-rate subportfolio performed closely in line with its category benchmark in Q1, equating to a neutral performance impact for the fund. (Neutral)

ASSET ALLOCATION PERFORMANCE SUMMARY

Asset Class High-Yield Debt Floating-Rate Debt U.S. Government & Investment Grade Debt Foreign-Developed Markets Debt Emerging Markets Debt Invested Assets Subtotals Top-Level Cash & Net Other Assets Net Expenses

Total Value Added *1 basis point = 0.01%.

Benchmark ICE BofA US HY Const Morningstar LSTA Per Loan BBg Government Bond BBG G.AGG xUS GDP Wgt HGD Bloomberg EM Agg USD Bond FID Strat Inc Comp Idx ---

Average Relative Weight 1.3% 1.9% -0.2% -3.7% 15.3% 14.6% -2.5% 0.0%

Relative Contribution (basis points)* 67 89 40 -150 191 237 -197 -19

20

Net Other Assets can include fund receivables, fund payables, and offsets to other derivative positions, as well as certain assets that do not fall into any of the portfolio composition categories. Depending on the extent to which the fund invests in derivatives and the number of positions that are held for future settlement, Net Other Assets can be a negative number.

3 | For definitions and other important information, please see Definitions and Important Information section of this Fund Review.

QUARTERLY FUND REVIEW: Fidelity? Strategic Income Fund | AS OF MARCH 31, 2023

Outlook and Positioning

The fund employs a lead portfolio-manager/subportfolio-manager structure. The two co-lead portfolio managers make allocation decisions across the portfolios' major asset classes. Individual selection decisions within each asset class are made by experienced and specialized managers within their respective areas of expertise.

Our asset allocation investment process is a disciplined, multi-step approach incorporating many economic and market signals. It begins with strategic allocation across the range of the portfolio's asset classes. Depending on the co-lead managers' outlook for each type of investment, they may over- or underweight an asset class versus the neutral mix. This is done judiciously, with an eye toward long-term trends and in a strategic manner to help preserve the integrity of the portfolios. Separate from the asset allocation process, each subportfolio has its own dedicated portfolio manager who employs an asset class specific process for security selection. The aim of the fund's investment approach is to offer a welldiversified strategy with the potential to deliver income regardless of the interest rate environment, as well as to provide a mix of upside potential and downside ballast.

Our main goal this quarter was to continue to reduce the fund's exposure to floating-rate loans. As of March 31, we continue to see some opportunity for these securities to outperform, as the asset class offers a high yield. However, we also believe their risk is rising and, with it, their potential for outsized outperformance is declining.

Late in 2022, we started to find the developed international bond asset class more attractive than we have in some time. After the sharp rise in interest rates, we saw significantly improved valuations, with the subportfolio's managers becoming particularly excited about the opportunities among European corporate bonds. We added significantly to our exposure, thus reducing our target underweight. Because this move extended the duration (interestrate sensitivity) of the portfolio, we simultaneously limited the fund's allocation to U.S. Treasury futures.

As of March 31, the fund's largest target overweights were in U.S. high-yield debt, floating-rate loans and cash. In our view, the opportunity cost of holding cash has fallen along with the steep rise in short-term interest rates. Also, maintaining a little more cash in the portfolio provides us with more cushion for error should financial markets remain volatile. Our largest target underweight as at quarter end was in developed international bonds. We finished the quarter with roughly neutral exposure to U.S. government securities. We also had a neutral allocation to emerging-market debt, where we saw limited opportunity for credit spread tightening.

Looking ahead, we note that the current economic cycle keeps lengthening, which makes large relative positioning bets unwarranted, as we anticipate further volatility ahead and as the market's expectation for an economic slowdown increases. As of March 31, we are not necessarily anticipating a deep downturn, however, so we're maintaining the fund's modest "risk-on" stance.

CREDIT-QUALITY DIVERSIFICATION

Credit Quality

Portfolio Weight

U.S. Government

30.52%

AAA

1.15%

AA

1.18%

A

2.43%

BBB

10.25%

BB

17.55%

B

22.32%

CCC & Below

3.56%

Short-Term Rated

0.00%

Not Rated/Not Available

0.99%

Cash & Net Other Assets

10.05%

Net Other Assets can include fund receivables, fund payables, and offsets to other derivative positions, as well as certain assets that do not fall into any of the portfolio composition categories. Depending on the extent to which the fund invests in derivatives and the number of positions that are held for future settlement, Net Other Assets can be a negative number.

Credit ratings for a rated issuer or security are categorized using the highest credit rating among the following three Nationally Recognized Statistical Rating Organizations ("NRSRO"): Moody's Investors Service (Moody's); Standard & Poor's Rating Services (S&P); or Fitch, Inc. Securities that are not rated by any of these three NRSRO's (e.g. equity securities) are categorized as Not Rated. All U.S. government securities are included in the U.S. Government category. The table information is based on the combined investments of the fund and its pro-rata share of any investments in other Fidelity funds.

CHARACTERISTICS

Duration 30-Day SEC Yield 30-Day SEC Restated Yield Net Asset Value

Portfolio 4.56 years

5.57% --

$11.11

4 | For definitions and other important information, please see Definitions and Important Information section of this Fund Review.

QUARTERLY FUND REVIEW: Fidelity? Strategic Income Fund | AS OF MARCH 31, 2023

SUBPORTFOLIO COMPOSITION

Asset Class

Portfolio Weight

Strategic Allocation

Relative Weight

Relative Change From Prior Quarter

High-Yield Debt

41.52%

40.00%

1.52%

0.55%

Corporate Bonds

33.29%

--

--

--

Bank Loans

2.02%

--

--

--

Convertibles Securities

0.20%

--

--

--

Equity, Rights & Warrants

3.26%

--

--

--

Cash & Net Other Assets

2.76%

--

--

--

Floating-Rate Debt

5.92%

5.00%

0.92%

-1.91%

Term & Revolving Loans

5.07%

--

--

--

Other Floating-Rate Securities

0.26%

--

--

--

Fixed-Rate Bonds

0.28%

--

--

--

Equity, Rights & Warrants

0.10%

--

--

--

Cash & Net Other Assets

0.21%

--

--

--

U.S. Government & Investment-Grade Debt

29.97%

30.00%

-0.03%

0.19%

Sovereign Bonds

27.48%

--

--

--

Securitized Debt

2.92%

--

--

--

Futures, Options & Swaps

0.06%

--

--

--

Cash & Net Other Assets

-0.49%

--

--

--

Foreign Developed-Markets Debt

7.34%

10.00%

-2.66%

2.28%

Corporate Bonds

3.04%

--

--

--

Sovereign Bonds

4.27%

--

--

--

Futures, Options & Swaps

-0.01%

--

--

--

Cash & Net Other Assets

0.04%

--

--

--

Emerging-Markets Debt

15.06%

15.00%

0.06%

-0.70%

Corporate Bonds

3.84%

--

--

--

Sovereign Bonds

10.38%

--

--

--

Floating-Rate Debt

0.41%

--

--

--

Equity, Rights & Warrants

0.00%

--

--

--

Cash & Net Other Assets

0.43%

--

--

--

Top Level Fund

0.19%

--

0.19%

-0.40%

Top-Level ETFs, Futures, Options & Swaps

1.46%

--

--

--

Top-Level Cash & Net Other Assets

-1.27%

--

--

--

Net Other Assets can include fund receivables, fund payables, and offsets to other derivative positions, as well as certain assets that do not fall into any of the portfolio composition categories. Depending on the extent to which the fund invests in derivatives and the number of positions that are held for future settlement, Net Other Assets can be a negative number.

5 | For definitions and other important information, please see Definitions and Important Information section of this Fund Review.

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