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)

Scott C. Goebel, 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, 2010

Item 1. Schedule of Investments

Quarterly Holdings Report

for

Fidelity ® Exchange Fund

September 30, 2010 

1.807724.106

EXC-QTLY-1110

Investments September 30, 2010 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 94.4%

Shares

Value

CONSUMER DISCRETIONARY - 16.0%

Hotels, Restaurants & Leisure - 7.0%

McDonald's Corp.

154,703

$ 11,526,921

Household Durables - 0.9%

Stanley Black & Decker, Inc.

23,948

1,467,533

Media - 3.6%

DIRECTV (a)

63,000

2,622,690

The Walt Disney Co.

103,073

3,412,747

 

6,035,437

Textiles, Apparel & Luxury Goods - 4.5%

Coach, Inc.

171,957

7,387,273

TOTAL CONSUMER DISCRETIONARY

26,417,164

CONSUMER STAPLES - 13.1%

Beverages - 2.3%

The Coca-Cola Co.

64,758

3,789,638

Household Products - 7.4%

Procter & Gamble Co.

202,397

12,137,748

Tobacco - 3.4%

Altria Group, Inc.

66,070

1,587,001

Philip Morris International, Inc.

72,270

4,048,565

 

5,635,566

TOTAL CONSUMER STAPLES

21,562,952

ENERGY - 12.9%

Energy Equipment & Services - 3.4%

Schlumberger Ltd.

91,096

5,612,425

Oil, Gas & Consumable Fuels - 9.5%

Chevron Corp.

83,712

6,784,858

Exxon Mobil Corp.

142,097

8,780,174

 

15,565,032

TOTAL ENERGY

21,177,457

FINANCIALS - 12.8%

Capital Markets - 0.9%

Ameriprise Financial, Inc.

32,900

1,557,157

Consumer Finance - 4.6%

American Express Co.

179,203

7,531,902

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Diversified Financial Services - 3.0%

CME Group, Inc.

13,000

$ 3,385,850

JPMorgan Chase & Co.

39,181

1,491,621

 

4,877,471

Insurance - 4.3%

Berkshire Hathaway, Inc. Class B (a)

86,050

7,114,614

TOTAL FINANCIALS

21,081,144

HEALTH CARE - 10.8%

Health Care Equipment & Supplies - 0.9%

Becton, Dickinson & Co.

19,900

1,474,590

Pharmaceuticals - 9.9%

Bristol-Myers Squibb Co.

32,894

891,756

Johnson & Johnson

137,969

8,548,559

Merck & Co., Inc.

120,112

4,421,323

Pfizer, Inc.

140,119

2,405,843

 

16,267,481

TOTAL HEALTH CARE

17,742,071

INDUSTRIALS - 11.8%

Aerospace & Defense - 4.3%

Raytheon Co.

31,100

1,421,581

United Technologies Corp.

80,328

5,721,763

 

7,143,344

Commercial Services & Supplies - 0.7%

Waste Management, Inc.

33,125

1,183,888

Industrial Conglomerates - 4.1%

3M Co.

34,830

3,020,109

General Electric Co.

229,226

3,724,923

 

6,745,032

Machinery - 0.9%

SPX Corp.

22,251

1,408,043

Road & Rail - 1.8%

Union Pacific Corp.

35,120

2,872,816

TOTAL INDUSTRIALS

19,353,123

Common Stocks - continued

Shares

Value

INFORMATION TECHNOLOGY - 14.2%

Communications Equipment - 2.4%

Juniper Networks, Inc. (a)

104,000

$ 3,156,400

Motorola, Inc. (a)

86,308

736,207

 

3,892,607

Computers & Peripherals - 7.3%

Hewlett-Packard Co.

285,882

12,027,056

Electronic Equipment & Components - 0.5%

Agilent Technologies, Inc. (a)

27,273

910,100

IT Services - 2.7%

International Business Machines Corp.

32,898

4,412,938

Software - 1.3%

Microsoft Corp.

90,290

2,211,202

TOTAL INFORMATION TECHNOLOGY

23,453,903

MATERIALS - 2.8%

Chemicals - 2.8%

Air Products & Chemicals, Inc.

54,727

4,532,490

TOTAL COMMON STOCKS

(Cost $19,724,667)

155,320,304

Money Market Funds - 5.5%

 

 

 

 

Fidelity Cash Central Fund, 0.25% (b)
(Cost $9,040,922)

9,040,922

9,040,922

Cash Equivalents - 0.0%

Maturity Amount

 

Investments in repurchase agreements in a joint trading account at 0.24%, dated 9/30/10 due 10/1/10 (Collateralized by U.S. Treasury Obligations) #
(Cost $39,000)

$ 39,000

39,000

TOTAL INVESTMENT PORTFOLIO - 99.9%

(Cost $28,804,589)

164,400,226

NET OTHER ASSETS (LIABILITIES) - 0.1%

232,695

NET ASSETS - 100%

$ 164,632,921

Legend

(a) Non-income producing

(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request.

# Additional information on each counterparty to the repurchase agreement is as follows:

Repurchase Agreement / Counterparty

Value

$39,000 due 10/01/10 at 0.24%

BNP Paribas Securities Corp.

$ 7,332

Barclays Capital, Inc.

6,325

Credit Agricole Securities (USA) Inc.

10,767

Deutsche Bank Securities, Inc.

336

J.P. Morgan Securities, Inc.

8,588

Mizuho Securities USA, Inc.

4,037

Morgan Stanley & Co., Inc.

269

RBC Capital Markets Corp.

1,346

 

$ 39,000

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund

Income earned

Fidelity Cash Central Fund

$ 13,703

Other Information

All investments are categorized as Level 1 under the Fair Value Hierarchy with the exception of Cash Equivalents which are categorized as Level 2. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section at the end of this listing.

Income Tax Information

At September 30, 2010, the cost of investment securities for income tax purposes was $28,804,589. Net unrealized appreciation aggregated $135,595,637, of which $137,814,762 related to appreciated investment securities and $2,219,125 related to depreciated investment securities.

Investment Valuation

Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Security transactions are accounted for as of trade date. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value calculation under these procedures may differ from published prices for the same securities. The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels. Level 1 - quoted prices in active markets for identical investments. Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds etc.). Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available). Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the Fund's investments by major category are as follows.

Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts, futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.

Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates fair value and are categorized as Level 2 in the hierarchy.

For additional information on the Fund's policy regarding valuation of investments and other significant accounting policies, please refer to the Fund's most recent semiannual or annual shareholder report.

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 LLC

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/Kenneth B. Robins

 

Kenneth B. Robins

 

President and Treasurer

 

 

Date:

November 29, 2010

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/Kenneth B. Robins

 

Kenneth B. Robins

 

President and Treasurer

 

 

Date:

November 29, 2010

By:

/s/Christine Reynolds

 

Christine Reynolds

 

Chief Financial Officer

 

 

Date:

November 29, 2010