N-Q 1 main.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811- 2614

Fidelity Exchange Fund
 (Exact name of registrant as specified in charter)

82 Devonshire St., Boston, Massachusetts 02109
 (Address of principal executive offices) (Zip code)

Eric D. Roiter, Secretary

82 Devonshire St.

Boston, Massachusetts 02109
(Name and address of agent for service)

Registrant's telephone number, including area code: 617-563-7000

Date of fiscal year end:

December 31

Date of reporting period:

September 30, 2004

Item 1. Schedule of Investments

Quarterly Holdings Report

for

Fidelity ® Exchange Fund

September 30, 2004

1.807724.100

EXCX-QTLY-1104

Investments September 30, 2004 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 98.4%

Shares

Value

CONSUMER DISCRETIONARY - 18.1%

Auto Components - 0.2%

Dana Corp.

22,174

$ 392,258

Delphi Corp.

12,880

119,655

511,913

Automobiles - 0.3%

General Motors Corp.

15,890

675,007

Hotels, Restaurants & Leisure - 2.6%

McDonald's Corp.

206,970

5,801,369

Household Durables - 0.4%

The Stanley Works

23,948

1,018,508

Media - 9.8%

Cox Communications, Inc. Class A (a)

24,681

817,682

Gannett Co., Inc.

61,737

5,171,091

Knight-Ridder, Inc.

8,396

549,518

McGraw-Hill Companies, Inc.

77,479

6,174,302

News Corp. Ltd. sponsored ADR

1,806

56,582

The DIRECTV Group, Inc. (a)

16,147

284,026

Tribune Co.

102,035

4,198,740

Viacom, Inc. Class B (non-vtg.)

28,041

941,056

Walt Disney Co.

164,487

3,709,182

21,902,179

Multiline Retail - 0.7%

Neiman Marcus Group, Inc. Class B

11,452

609,819

The May Department Stores Co.

33,955

870,267

1,480,086

Specialty Retail - 0.1%

Payless ShoeSource, Inc. (a)

26,320

266,622

Textiles Apparel & Luxury Goods - 4.0%

Coach, Inc. (a)

210,881

8,945,572

TOTAL CONSUMER DISCRETIONARY

40,601,256

CONSUMER STAPLES - 12.6%

Beverages - 3.4%

Anheuser-Busch Companies, Inc.

92,986

4,644,651

The Coca-Cola Co.

72,998

2,923,570

7,568,221

Food & Staples Retailing - 0.3%

SUPERVALU, Inc.

26,367

726,411

Common Stocks - continued

Shares

Value

CONSUMER STAPLES - continued

Food Products - 0.9%

General Mills, Inc.

4,999

$ 224,455

Sara Lee Corp.

71,377

1,631,678

1,856,133

Household Products - 4.2%

Colgate-Palmolive Co.

65,295

2,950,028

Procter & Gamble Co.

117,858

6,378,475

9,328,503

Personal Products - 2.3%

Gillette Co.

124,221

5,184,985

Tobacco - 1.5%

Altria Group, Inc.

72,270

3,399,581

TOTAL CONSUMER STAPLES

28,063,834

ENERGY - 9.6%

Energy Equipment & Services - 1.7%

Schlumberger Ltd. (NY Shares)

50,548

3,402,386

Transocean, Inc. (a)

9,870

353,149

3,755,535

Oil & Gas - 7.9%

Anadarko Petroleum Corp.

5,725

379,911

ChevronTexaco Corp.

87,280

4,681,699

Exxon Mobil Corp.

210,102

10,154,230

Kerr-McGee Corp.

12,470

713,908

Royal Dutch Petroleum Co. (NY Shares)

35,510

1,832,316

17,762,064

TOTAL ENERGY

21,517,599

FINANCIALS - 13.8%

Capital Markets - 1.5%

Lehman Brothers Holdings, Inc.

33,799

2,694,456

Waddell & Reed Financial, Inc. Class A

35,246

775,412

3,469,868

Consumer Finance - 4.9%

American Express Co.

214,203

11,022,886

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Diversified Financial Services - 3.1%

Citigroup, Inc.

115,305

$ 5,087,257

J.P. Morgan Chase & Co.

44,181

1,755,311

6,842,568

Insurance - 4.3%

Berkshire Hathaway, Inc. Class B (a)

1,905

5,469,255

St. Paul Travelers Companies, Inc.

7,061

233,437

Torchmark Corp.

73,192

3,892,351

9,595,043

TOTAL FINANCIALS

30,930,365

HEALTH CARE - 17.3%

Health Care Equipment & Supplies - 5.0%

Becton, Dickinson & Co.

84,290

4,357,793

Guidant Corp.

84,898

5,606,664

Zimmer Holdings, Inc. (a)

16,106

1,273,018

11,237,475

Health Care Providers & Services - 0.1%

Medco Health Solutions, Inc. (a)

5,762

178,046

Pharmaceuticals - 12.2%

Bristol-Myers Squibb Co.

155,144

3,672,258

Eli Lilly & Co.

30,231

1,815,372

Johnson & Johnson

145,669

8,205,535

Merck & Co., Inc.

62,323

2,056,659

Pfizer, Inc.

172,694

5,284,436

Schering-Plough Corp.

132,858

2,532,273

Wyeth

102,174

3,821,308

27,387,841

TOTAL HEALTH CARE

38,803,362

INDUSTRIALS - 15.5%

Aerospace & Defense - 2.6%

Raytheon Co.

35,600

1,352,088

United Technologies Corp.

48,164

4,497,554

5,849,642

Commercial Services & Supplies - 0.4%

Waste Management, Inc.

33,125

905,638

Common Stocks - continued

Shares

Value

INDUSTRIALS - continued

Industrial Conglomerates - 8.5%

3M Co.

55,460

$ 4,435,136

General Electric Co.

438,163

14,713,511

19,148,647

Machinery - 3.5%

Parker Hannifin Corp.

107,426

6,323,094

SPX Corp.

40,291

1,426,301

7,749,395

Road & Rail - 0.5%

Union Pacific Corp.

17,560

1,029,016

TOTAL INDUSTRIALS

34,682,338

INFORMATION TECHNOLOGY - 7.7%

Communications Equipment - 1.6%

Motorola, Inc.

194,748

3,513,254

Computers & Peripherals - 4.1%

Hewlett-Packard Co.

342,175

6,415,781

International Business Machines Corp.

33,898

2,906,415

9,322,196

Electronic Equipment & Instruments - 0.7%

Agilent Technologies, Inc. (a)

71,373

1,539,516

Semiconductors & Semiconductor Equipment - 0.2%

Cabot Microelectronics Corp. (a)

11,977

434,166

Software - 1.1%

Microsoft Corp.

90,290

2,496,519

TOTAL INFORMATION TECHNOLOGY

17,305,651

MATERIALS - 2.7%

Chemicals - 2.7%

Air Products & Chemicals, Inc.

84,853

4,614,306

Cabot Corp.

37,691

1,453,742

6,068,048

Common Stocks - continued

Shares

Value

TELECOMMUNICATION SERVICES - 1.1%

Diversified Telecommunication Services - 1.1%

ALLTEL Corp.

1,756

$ 96,422

Sprint Corp.

118,210

2,379,567

2,475,989

TOTAL COMMON STOCKS

(Cost $24,210,828)

220,448,442

Cash Equivalents - 1.5%

Maturity Amount

Investments in repurchase agreements (Collateralized by U.S. Treasury Obligations, in a joint trading account at 1.72%, dated 9/30/04 due 10/1/04)
(Cost $3,307,000)

$ 3,307,158

3,307,000

TOTAL INVESTMENT PORTFOLIO - 99.9%

(Cost $27,517,828)

223,755,442

NET OTHER ASSETS - 0.1%

211,901

NET ASSETS - 100%

$ 223,967,343

Legend

(a) Non-income producing

Income Tax Information

At September 30, 2004, the aggregate cost of investment securities for income tax purposes was $27,517,826. Net unrealized appreciation aggregated $196,237,616, of which $198,853,358 related to appreciated investment securities and $2,615,742 related to depreciated investment securities.

Quarterly Report

The fund's schedule of investments as of the date on the cover of this report has not been audited. This report is provided for the general information of the fund's shareholders. For more information regarding the fund and its holdings, please see the fund's most recent prospectus and annual report.

Third party trademarks and service marks are the property of their respective owners. All other trademarks and service marks are the property of FMR Corp. or an affiliate.

Quarterly Report

Item 2. Controls and Procedures

(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Exchange Fund's (the "Trust") disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.

(a)(ii) There was no change in the Trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the Trust's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Trust's internal control over financial reporting.

Item 3. Exhibits

Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Fidelity Exchange Fund

By:

/s/Christine Reynolds

Christine Reynolds

President and Treasurer

Date:

November 22, 2004

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:

/s/Christine Reynolds

Christine Reynolds

President and Treasurer

Date:

November 22, 2004

By:

/s/Timothy F. Hayes

Timothy F. Hayes

Chief Financial Officer

Date:

November 22, 2004