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 811-2105

Fidelity Fixed-Income Trust
 (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, 2008

Item 1. Schedule of Investments

Quarterly Holdings Report

for

Fidelity® Dynamic StrategiesSM Fund

September 30, 2008 

1.852679.100

DYS-QTLY-1108

Investments September 30, 2008 (Unaudited)

Showing Percentage of Total Value of Investment in Securities

Investments reflect the categorizations of assets as defined by Morningstar as of the reporting date indicated above.

Equity Funds - 56.1%

Shares

Value

Diversified Emerging Markets Funds - 2.0%

Fidelity Emerging Markets Fund (b)

29,674

$ 597,628

iShares MSCI Emerging Markets Index ETF

9,600

331,488

Market Vectors Africa Index ETF (a)

4,500

147,600

Market Vectors Gulf States ETF (a)

7,500

235,950

PowerShares MENA Frontier Countries Portfolio ETF (a)

15,700

299,870

SPDR S&P BRIC 40 ETF

8,975

181,744

SPDR S&P Emerging Middle East & Africa ETF

7,500

410,700

TOTAL DIVERSIFIED EMERGING MARKETS FUNDS

2,204,980

Europe Stock Funds - 0.5%

Fidelity Europe Fund (b)

9,567

279,541

Market Vectors Russia ETF

6,500

187,980

SPDR S&P Emerging Europe ETF

3,300

144,639

TOTAL EUROPE STOCK FUNDS

612,160

Foreign Large Blend Funds - 0.7%

Fidelity Canada Fund (b)

7,792

394,565

iShares MSCI EAFE Index ETF

7,300

410,990

TOTAL FOREIGN LARGE BLEND FUNDS

805,555

Foreign Large Value Funds - 0.1%

PowerShares International Dividend Achievers ETF

5,413

80,762

Foreign Small Mid Growth Funds - 0.3%

Fidelity International Small Cap Opportunities Fund (b)

33,835

308,911

Japan Stock Funds - 0.2%

Fidelity Japan Fund (b)

20,863

226,988

Large Blend Funds - 16.4%

Fidelity Advisor 130/30 Large Cap Institutional Class (b)

255,164

2,237,787

Fidelity Disciplined Equity Fund (b)

143,242

3,303,154

Fidelity Mega Cap Stock Fund (b)

393,709

3,511,884

Fidelity Select Consumer Staples Portfolio (b)

32,416

1,924,557

Fidelity Select Industrials Portfolio (b)

108,214

1,920,801

PowerShares Buyback Achievers ETF

8,000

161,200

Rydex Russell Top 50 ETF

10,000

880,800

S&P Depositary Receipts Trust unit Series 1 ETF

38,600

4,501,918

TOTAL LARGE BLEND FUNDS

18,442,101

Equity Funds - continued

Shares

Value

Large Growth Funds - 2.0%

Fidelity Blue Chip Growth Fund (b)

15,848

$ 556,758

Fidelity Select Consumer Discretionary Portfolio (b)

86,043

1,525,543

iShares Dow Jones US Consumer Services Sector Index ETF

3,300

174,834

TOTAL LARGE GROWTH FUNDS

2,257,135

Latin America Stock Funds - 0.7%

Fidelity Latin America Fund (b)

7,563

328,516

iShares MSCI Brazil Index ETF

7,400

418,100

TOTAL LATIN AMERICA STOCK FUNDS

746,616

Mid-Cap Blend Funds - 1.2%

Fidelity Leveraged Company Stock Fund (b)

17,571

407,478

Fidelity Select Defense & Aerospace Portfolio (b)

4,879

297,550

iShares Dow Jones U.S. Home Construction Index ETF

24,800

442,928

Market Vectors Environmental Services ETF

5,500

247,995

TOTAL MID-CAP BLEND FUNDS

1,395,951

Pacific Asia ex-Japan Stock Funds - 1.0%

Fidelity China Region Fund (b)

16,168

332,729

iPath MSCI India Index ETN (a)

4,110

185,895

iShares MSCI Australia Index ETF

6,550

134,537

iShares MSCI Hong Kong Index ETF

10,200

135,864

iShares MSCI South Korea Index ETF

2,783

110,708

iShares MSCI Taiwan Index ETF

9,200

99,084

SPDR S&P China ETF

2,300

119,209

TOTAL PACIFIC ASIA EX-JAPAN STOCK FUNDS

1,118,026

Small Growth Funds - 0.2%

PowerShares Cleantech ETF

9,455

241,764

Specialty Funds - Communications - 0.5%

Fidelity Select Telecommunications Portfolio (b)

14,907

519,357

Specialty Funds - Financial - 3.9%

Fidelity Select Financial Services Portfolio (b)

40,038

2,647,339

SPDR Financial Select Sector ETF

88,400

1,764,464

TOTAL SPECIALTY FUNDS - FINANCIAL

4,411,803

Equity Funds - continued

Shares

Value

Specialty Funds - Health - 3.2%

Fidelity Select Biotechnology Portfolio (a)(b)

6,623

$ 435,298

Fidelity Select Health Care Portfolio (b)

21,477

2,130,495

SPDR S&P Biotech ETF

16,621

1,006,069

TOTAL SPECIALTY FUNDS - HEALTH

3,571,862

Specialty Funds - Natural Resources - 13.1%

Claymore Oil Sands Sector ETF

15,442

279,273

Claymore S&P Global Water Index ETF

11,000

216,590

Fidelity Select Energy Portfolio (b)

41,303

1,949,090

Fidelity Select Energy Services Portfolio (b)

6,539

476,505

Fidelity Select Materials Portfolio (b)

12,257

538,092

Fidelity Select Natural Gas Portfolio (b)

15,822

530,369

First Trust ISE Water Index Fund

8,300

164,423

First Trust ISE-Revere Natural Gas Index Fund ETF

25,600

511,232

GreenHaven Continuous Commodity Index ETF (a)

25,500

704,310

Horizons BetaPro DJ-AIG Agricultural Grains Bull Plus ETF (a)

30,000

253,664

Horizons BetaPro NYMEX Natural Gas Bull Plus ETF (a)

15,000

168,264

iShares Dow Jones U.S. Oil & Gas Exploration & Production Index ETF

8,400

469,308

iShares S&P North American Natural Resources
Sector Index ETF

8,527

306,716

Market Vectors Coal ETF (a)

12,800

377,984

Market Vectors Global Alternative Energy ETF

5,700

219,735

Market Vectors Nuclear Energy ETF

2,258

51,460

Market Vectors RVE Hard Assets Producers ETF (a)

3,000

96,600

Market Vectors Solar Energy ETF (a)

6,400

179,136

Market Vectors Steel ETF

1,400

73,654

PowerShares Global Clean Energy ETF

8,100

155,277

PowerShares Global Water ETF

17,000

280,500

PowerShares Global Wind Energy Portfolio ETF (a)

10,200

172,074

PowerShares Water Resources Portfolio ETF

13,800

252,954

PowerShares WilderHill Clean Energy ETF

13,100

193,356

PowerShares WilderHill Progressive Energy ETF

8,000

175,120

SPDR Oil & Gas Equipment & Services ETF

17,000

553,520

SPDR S&P Oil & Gas Exploration & Production ETF

12,500

561,375

United States 12 Month Oil Fund LP ETF (a)

9,999

604,540

United States Natural Gas Fund LP ETF (a)

70,300

2,336,772

United States Oil Fund LP ETF (a)

23,900

1,959,800

TOTAL SPECIALTY FUNDS - NATURAL RESOURCES

14,811,693

Equity Funds - continued

Shares

Value

Specialty Funds - Precious Metals - 1.4%

Fidelity Select Gold Portfolio (b)

15,049

$ 466,826

Horizons BetaPro COMEX Gold Bullion Bull Plus ETF (a)

58,300

927,849

Market Vectors Gold Miners ETF

4,624

158,649

TOTAL SPECIALTY FUNDS - PRECIOUS METALS

1,553,324

Specialty Funds - Real Estate - 1.5%

DJ Wilshire REIT ETF

8,300

559,586

Fidelity International Real Estate Fund (b)

24,173

211,753

Fidelity Real Estate Income Fund (b)

36,735

327,675

Fidelity Real Estate Investment Portfolio (b)

13,782

349,787

iShares FTSE NAREIT Residential Index ETF

3,000

126,180

SPDR DJ Wilshire Global Real Estate ETF

3,000

120,090

TOTAL SPECIALTY FUNDS - REAL ESTATE

1,695,071

Specialty Funds - Technology - 4.7%

Fidelity Select Software & Computer Services Portfolio (a)(b)

3,906

231,700

Fidelity Select Technology Portfolio (a)(b)

44,114

2,426,275

iShares Dow Jones US Technology Sector Index ETF

44,000

2,086,480

SPDR S&P Semiconductor ETF

17,800

611,608

TOTAL SPECIALTY FUNDS - TECHNOLOGY

5,356,063

Specialty Funds - Utilities - 1.7%

Fidelity Select Utilities Growth Portfolio (b)

21,292

978,571

iShares S&P Global Infrastructure Index ETF

4,000

145,880

iShares S&P Global Utilities Sector Index ETF

6,600

355,740

SPDR FTSE Macquarie Global Infrastructure 100 ETF

8,700

405,333

TOTAL SPECIALTY FUNDS - UTILITIES

1,885,524

World Stock Funds - 0.8%

iShares S&P Global Consumer Staples Sector Index ETF

9,287

516,079

Market Vectors Agribusiness ETF

10,000

368,400

TOTAL WORLD STOCK FUNDS

884,479

TOTAL EQUITY FUNDS

(Cost $76,129,984)

63,130,125

Fixed-Income Funds - 29.9%

Shares

Value

Bank Loan Funds - 1.6%

Fidelity Floating Rate High Income Fund (b)

204,648

$ 1,811,137

Conservative Allocation Funds - 2.6%

Fidelity Strategic Real Return Fund (b)

315,544

2,959,802

Emerging Markets Bond Funds - 2.3%

Fidelity New Markets Income Fund (b)

200,983

2,636,893

High Yield Bond Funds - 1.6%

Fidelity High Income Fund (b)

231,267

1,757,632

Inflation-Protected Bond Funds - 9.4%

Fidelity Inflation Protected Bond Fund (b)

971,616

10,561,464

Intermediate-Term Bond Funds - 12.4%

Fidelity Investment Grade Bond Fund (b)

1,672,998

11,175,629

iShares Lehman Aggregate Bond ETF

28,200

2,780,238

TOTAL INTERMEDIATE-TERM BOND FUNDS

13,955,867

TOTAL FIXED-INCOME FUNDS

(Cost $35,671,311)

33,682,795

Other - 2.2%

 

 

 

World Bond Funds - 2.2%

CurrencyShares Australian Dollar Trust ETF

1,718

136,426

CurrencyShares Canadian Dollar Trust ETF

1,498

141,172

CurrencyShares Euro Trust ETF

1,069

150,643

CurrencyShares Japanese Yen Trust ETF (a)

1,421

133,418

CurrencyShares Mexican Peso Trust ETF

560

51,425

CurrencyShares Swiss Franc Trust ETF

1,775

158,259

PowerShares DB US Dollar Index Bearish ETF

5,758

155,293

SPDR DB International Government Inflation-Protected Bond ETF

21,400

1,104,240

WisdomTree Dreyfus Brazilian Real ETF (a)

7,600

171,912

WisdomTree Dreyfus Chinese Yuan ETF (a)

7,700

193,732

WisdomTree Dreyfus Indian Rupee ETF (a)

7,700

174,636

TOTAL OTHER

(Cost $2,817,205)

2,571,156

Cash Equivalents - 2.1%

Maturity Amount

Value

Investments in repurchase agreements in a joint trading account at 0.17%, dated 9/30/08 due 10/1/08 (Collateralized by U.S. Treasury Obligations) #

(Cost $2,349,000)

$ 2,349,000

$ 2,349,000

Short-Term Funds - 9.7%

 

Shares

 

 

Fidelity Institutional Money Market Portfolio
Institutional Class (b)

(Cost $10,833,368)

10,833,368

10,833,368

TOTAL INVESTMENT IN SECURITIES - 100%

(Cost $127,800,868)

$ 112,566,444

Legend

(a) Non-income producing

(b) Affiliated company

Security Type Abbreviations

ETF - Exchange-Traded Fund

ETN - Exchange-Traded Note

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

Repurchase Agreement / Counterparty

Value

$2,349,000 due 10/01/08 at 0.17%

BNP Paribas Securities Corp.

$ 1,734,019

Barclays Capital, Inc.

168,894

ING Financial Markets LLC

446,087

 

$ 2,349,000

Affiliated Underlying Funds

Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows:

Fund

Value, beginning of period

Purchases

Sales
Proceeds

Income

Value,
end of
period

Fidelity Advisor 130/30 Large Cap Institutional Class

$ -

$ 2,796,656

$ 111,018

$ -

$ 2,237,787

Fidelity Blue Chip Growth Fund

444,481

447,210

210,903

2,915

556,758

Fidelity Canada Fund

169,084

333,976

34,672

-

394,565

Fund

Value, beginning of period

Purchases

Sales
Proceeds

Income

Value,
end of
period

Fidelity China Region Fund

142,380

351,140

35,091

-

332,729

Fidelity Disciplined Equity Fund

717,241

3,379,369

196,507

-

3,303,154

Fidelity Emerging Markets Fund

297,782

693,525

69,923

-

597,628

Fidelity Europe Fund

345,247

345,883

263,352

-

279,541

Fidelity Floating Rate High Income Fund

609,666

1,421,532

102,966

45,685

1,811,137

Fidelity High Income Fund

607,690

1,451,274

103,465

71,471

1,757,632

Fidelity Inflation Protected Bond Fund

3,642,705

7,764,350

503,729

80,307

10,561,464

Fidelity Institutional Money Market Portfolio Institutional Class

1,603,844

20,207,126

10,977,602

171,567

10,833,368

Fidelity International Real Estate Fund

280,906

150,707

80,190

-

211,753

Fidelity International Small Cap Opportunities Fund

137,234

349,005

34,959

-

308,911

Fidelity Investment Grade Bond Fund

3,981,503

8,425,821

533,833

276,992

11,175,629

Fidelity Japan Fund

339,403

338,310

358,228

-

226,988

Fidelity Latin America Fund

148,712

349,891

34,962

-

328,516

Fidelity Leveraged Company Stock Fund

175,313

492,532

111,006

625

407,478

Fidelity Mega Cap Stock Fund

248,246

4,098,495

136,393

20,646

3,511,884

Fidelity New Markets Income Fund

917,387

2,149,386

146,959

82,879

2,636,893

Fidelity Real Estate Income Fund

299,331

166,520

80,191

15,059

327,675

Fidelity Real Estate Investment Portfolio

277,123

154,737

80,189

3,189

349,787

Fidelity Select Biotechnology Portfolio

337,279

350,035

263,357

-

435,298

Fidelity Select Consumer Discretionary Portfolio

461,775

1,339,586

90,716

-

1,525,543

Fidelity Select Consumer Staples Portfolio

524,718

1,670,546

114,876

142

1,924,557

Fidelity Select Defense & Aerospace Portfolio

344,605

387,454

263,355

881

297,550

Fidelity Select Energy Portfolio

662,466

2,213,964

157,543

199

1,949,090

Fidelity Select Energy Services Portfolio

185,066

499,675

35,654

-

476,505

Fidelity Select Financial Services Portfolio

988,074

2,555,610

164,484

1,214

2,647,339

Fidelity Select Gold Portfolio

156,080

483,625

35,649

-

466,826

Fidelity Select Health Care Portfolio

631,545

1,920,634

124,837

1,227

2,130,495

Fund

Value, beginning of period

Purchases

Sales
Proceeds

Income

Value,
end of
period

Fidelity Select Industrials Portfolio

607,200

1,809,251

122,092

1,102

1,920,801

Fidelity Select Materials Portfolio

176,730

577,332

40,136

-

538,092

Fidelity Select Natural Gas Portfolio

16,861

831,394

89,974

-

530,369

Fidelity Select Software & Computer Services Portfolio

362,234

173,176

192,830

-

231,700

Fidelity Select Technology Portfolio

852,533

2,525,403

176,086

-

2,426,275

Fidelity Select Telecommunications Portfolio

189,360

521,691

34,911

749

519,357

Fidelity Select Utilities Growth Portfolio

183,689

1,181,957

74,865

-

978,571

Fidelity Strategic Real
Return Fund

1,072,188

2,306,868

178,828

48,682

2,959,802

Total

$ 23,137,681

$ 77,215,646

$ 16,366,331

$ 835,531

$ 74,109,447

Other Information

The following is a summary of the inputs used, as of September 30, 2008, involving the Fund's assets carried at value. 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, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section at the end of this listing.

Valuation Inputs at Reporting Date:

Description

Total

Level 1

Level 2

Level 3

Investments in Securities

$ 112,566,444

$ 110,217,444

$ 2,349,000

$ -

Income Tax Information

At September 30, 2008, the aggregate cost of investment securities for income tax purposes was $127,882,508. Net unrealized depreciation aggregated $15,316,064, of which $433,307 related to appreciated investment securities and $15,749,371 related to depreciated investment securities.

Investment Valuation

Investments in the affiliated Underlying Funds are valued at their closing net asset value (NAV) each business day. Exchange Traded Funds (ETFs) are valued at their 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. In the event there were no sales during the day or closing prices are not available, ETFs are valued at the last quoted price. Security transactions are accounted for as of trade date. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost, which approximates value.

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. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under these procedures may differ from published prices for the same securities.

The Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:

Level 1 - Quoted prices in active markets for identical securities.

Level 2 - Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others.

Level 3 - Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available.

Changes in valuation techniques may result in transfers in or out of an investment's assigned level within 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

Quarterly Holdings Report

for

Fidelity® Dynamic StrategiesSM Fund
Class A
Class T
Class B
Class C
Institutional Class

September 30, 2008

Class A, Class T, Class B, Class C
and Institutional Class
are classes of Fidelity®
Dynamic StrategiesSM Fund 

1.852739.100

ADYS-QTLY-1108

Investments September 30, 2008 (Unaudited)

Showing Percentage of Total Value of Investment in Securities

Investments reflect the categorizations of assets as defined by Morningstar as of the reporting date indicated above.

Equity Funds - 56.1%

Shares

Value

Diversified Emerging Markets Funds - 2.0%

Fidelity Emerging Markets Fund (b)

29,674

$ 597,628

iShares MSCI Emerging Markets Index ETF

9,600

331,488

Market Vectors Africa Index ETF (a)

4,500

147,600

Market Vectors Gulf States ETF (a)

7,500

235,950

PowerShares MENA Frontier Countries Portfolio ETF (a)

15,700

299,870

SPDR S&P BRIC 40 ETF

8,975

181,744

SPDR S&P Emerging Middle East & Africa ETF

7,500

410,700

TOTAL DIVERSIFIED EMERGING MARKETS FUNDS

2,204,980

Europe Stock Funds - 0.5%

Fidelity Europe Fund (b)

9,567

279,541

Market Vectors Russia ETF

6,500

187,980

SPDR S&P Emerging Europe ETF

3,300

144,639

TOTAL EUROPE STOCK FUNDS

612,160

Foreign Large Blend Funds - 0.7%

Fidelity Canada Fund (b)

7,792

394,565

iShares MSCI EAFE Index ETF

7,300

410,990

TOTAL FOREIGN LARGE BLEND FUNDS

805,555

Foreign Large Value Funds - 0.1%

PowerShares International Dividend Achievers ETF

5,413

80,762

Foreign Small Mid Growth Funds - 0.3%

Fidelity International Small Cap Opportunities Fund (b)

33,835

308,911

Japan Stock Funds - 0.2%

Fidelity Japan Fund (b)

20,863

226,988

Large Blend Funds - 16.4%

Fidelity Advisor 130/30 Large Cap Institutional Class (b)

255,164

2,237,787

Fidelity Disciplined Equity Fund (b)

143,242

3,303,154

Fidelity Mega Cap Stock Fund (b)

393,709

3,511,884

Fidelity Select Consumer Staples Portfolio (b)

32,416

1,924,557

Fidelity Select Industrials Portfolio (b)

108,214

1,920,801

PowerShares Buyback Achievers ETF

8,000

161,200

Rydex Russell Top 50 ETF

10,000

880,800

S&P Depositary Receipts Trust unit Series 1 ETF

38,600

4,501,918

TOTAL LARGE BLEND FUNDS

18,442,101

Equity Funds - continued

Shares

Value

Large Growth Funds - 2.0%

Fidelity Blue Chip Growth Fund (b)

15,848

$ 556,758

Fidelity Select Consumer Discretionary Portfolio (b)

86,043

1,525,543

iShares Dow Jones US Consumer Services Sector Index ETF

3,300

174,834

TOTAL LARGE GROWTH FUNDS

2,257,135

Latin America Stock Funds - 0.7%

Fidelity Latin America Fund (b)

7,563

328,516

iShares MSCI Brazil Index ETF

7,400

418,100

TOTAL LATIN AMERICA STOCK FUNDS

746,616

Mid-Cap Blend Funds - 1.2%

Fidelity Leveraged Company Stock Fund (b)

17,571

407,478

Fidelity Select Defense & Aerospace Portfolio (b)

4,879

297,550

iShares Dow Jones U.S. Home Construction Index ETF

24,800

442,928

Market Vectors Environmental Services ETF

5,500

247,995

TOTAL MID-CAP BLEND FUNDS

1,395,951

Pacific Asia ex-Japan Stock Funds - 1.0%

Fidelity China Region Fund (b)

16,168

332,729

iPath MSCI India Index ETN (a)

4,110

185,895

iShares MSCI Australia Index ETF

6,550

134,537

iShares MSCI Hong Kong Index ETF

10,200

135,864

iShares MSCI South Korea Index ETF

2,783

110,708

iShares MSCI Taiwan Index ETF

9,200

99,084

SPDR S&P China ETF

2,300

119,209

TOTAL PACIFIC ASIA EX-JAPAN STOCK FUNDS

1,118,026

Small Growth Funds - 0.2%

PowerShares Cleantech ETF

9,455

241,764

Specialty Funds - Communications - 0.5%

Fidelity Select Telecommunications Portfolio (b)

14,907

519,357

Specialty Funds - Financial - 3.9%

Fidelity Select Financial Services Portfolio (b)

40,038

2,647,339

SPDR Financial Select Sector ETF

88,400

1,764,464

TOTAL SPECIALTY FUNDS - FINANCIAL

4,411,803

Equity Funds - continued

Shares

Value

Specialty Funds - Health - 3.2%

Fidelity Select Biotechnology Portfolio (a)(b)

6,623

$ 435,298

Fidelity Select Health Care Portfolio (b)

21,477

2,130,495

SPDR S&P Biotech ETF

16,621

1,006,069

TOTAL SPECIALTY FUNDS - HEALTH

3,571,862

Specialty Funds - Natural Resources - 13.1%

Claymore Oil Sands Sector ETF

15,442

279,273

Claymore S&P Global Water Index ETF

11,000

216,590

Fidelity Select Energy Portfolio (b)

41,303

1,949,090

Fidelity Select Energy Services Portfolio (b)

6,539

476,505

Fidelity Select Materials Portfolio (b)

12,257

538,092

Fidelity Select Natural Gas Portfolio (b)

15,822

530,369

First Trust ISE Water Index Fund

8,300

164,423

First Trust ISE-Revere Natural Gas Index Fund ETF

25,600

511,232

GreenHaven Continuous Commodity Index ETF (a)

25,500

704,310

Horizons BetaPro DJ-AIG Agricultural Grains Bull Plus ETF (a)

30,000

253,664

Horizons BetaPro NYMEX Natural Gas Bull Plus ETF (a)

15,000

168,264

iShares Dow Jones U.S. Oil & Gas Exploration & Production Index ETF

8,400

469,308

iShares S&P North American Natural Resources
Sector Index ETF

8,527

306,716

Market Vectors Coal ETF (a)

12,800

377,984

Market Vectors Global Alternative Energy ETF

5,700

219,735

Market Vectors Nuclear Energy ETF

2,258

51,460

Market Vectors RVE Hard Assets Producers ETF (a)

3,000

96,600

Market Vectors Solar Energy ETF (a)

6,400

179,136

Market Vectors Steel ETF

1,400

73,654

PowerShares Global Clean Energy ETF

8,100

155,277

PowerShares Global Water ETF

17,000

280,500

PowerShares Global Wind Energy Portfolio ETF (a)

10,200

172,074

PowerShares Water Resources Portfolio ETF

13,800

252,954

PowerShares WilderHill Clean Energy ETF

13,100

193,356

PowerShares WilderHill Progressive Energy ETF

8,000

175,120

SPDR Oil & Gas Equipment & Services ETF

17,000

553,520

SPDR S&P Oil & Gas Exploration & Production ETF

12,500

561,375

United States 12 Month Oil Fund LP ETF (a)

9,999

604,540

United States Natural Gas Fund LP ETF (a)

70,300

2,336,772

United States Oil Fund LP ETF (a)

23,900

1,959,800

TOTAL SPECIALTY FUNDS - NATURAL RESOURCES

14,811,693

Equity Funds - continued

Shares

Value

Specialty Funds - Precious Metals - 1.4%

Fidelity Select Gold Portfolio (b)

15,049

$ 466,826

Horizons BetaPro COMEX Gold Bullion Bull Plus ETF (a)

58,300

927,849

Market Vectors Gold Miners ETF

4,624

158,649

TOTAL SPECIALTY FUNDS - PRECIOUS METALS

1,553,324

Specialty Funds - Real Estate - 1.5%

DJ Wilshire REIT ETF

8,300

559,586

Fidelity International Real Estate Fund (b)

24,173

211,753

Fidelity Real Estate Income Fund (b)

36,735

327,675

Fidelity Real Estate Investment Portfolio (b)

13,782

349,787

iShares FTSE NAREIT Residential Index ETF

3,000

126,180

SPDR DJ Wilshire Global Real Estate ETF

3,000

120,090

TOTAL SPECIALTY FUNDS - REAL ESTATE

1,695,071

Specialty Funds - Technology - 4.7%

Fidelity Select Software & Computer Services Portfolio (a)(b)

3,906

231,700

Fidelity Select Technology Portfolio (a)(b)

44,114

2,426,275

iShares Dow Jones US Technology Sector Index ETF

44,000

2,086,480

SPDR S&P Semiconductor ETF

17,800

611,608

TOTAL SPECIALTY FUNDS - TECHNOLOGY

5,356,063

Specialty Funds - Utilities - 1.7%

Fidelity Select Utilities Growth Portfolio (b)

21,292

978,571

iShares S&P Global Infrastructure Index ETF

4,000

145,880

iShares S&P Global Utilities Sector Index ETF

6,600

355,740

SPDR FTSE Macquarie Global Infrastructure 100 ETF

8,700

405,333

TOTAL SPECIALTY FUNDS - UTILITIES

1,885,524

World Stock Funds - 0.8%

iShares S&P Global Consumer Staples Sector Index ETF

9,287

516,079

Market Vectors Agribusiness ETF

10,000

368,400

TOTAL WORLD STOCK FUNDS

884,479

TOTAL EQUITY FUNDS

(Cost $76,129,984)

63,130,125

Fixed-Income Funds - 29.9%

Shares

Value

Bank Loan Funds - 1.6%

Fidelity Floating Rate High Income Fund (b)

204,648

$ 1,811,137

Conservative Allocation Funds - 2.6%

Fidelity Strategic Real Return Fund (b)

315,544

2,959,802

Emerging Markets Bond Funds - 2.3%

Fidelity New Markets Income Fund (b)

200,983

2,636,893

High Yield Bond Funds - 1.6%

Fidelity High Income Fund (b)

231,267

1,757,632

Inflation-Protected Bond Funds - 9.4%

Fidelity Inflation Protected Bond Fund (b)

971,616

10,561,464

Intermediate-Term Bond Funds - 12.4%

Fidelity Investment Grade Bond Fund (b)

1,672,998

11,175,629

iShares Lehman Aggregate Bond ETF

28,200

2,780,238

TOTAL INTERMEDIATE-TERM BOND FUNDS

13,955,867

TOTAL FIXED-INCOME FUNDS

(Cost $35,671,311)

33,682,795

Other - 2.2%

 

 

 

World Bond Funds - 2.2%

CurrencyShares Australian Dollar Trust ETF

1,718

136,426

CurrencyShares Canadian Dollar Trust ETF

1,498

141,172

CurrencyShares Euro Trust ETF

1,069

150,643

CurrencyShares Japanese Yen Trust ETF (a)

1,421

133,418

CurrencyShares Mexican Peso Trust ETF

560

51,425

CurrencyShares Swiss Franc Trust ETF

1,775

158,259

PowerShares DB US Dollar Index Bearish ETF

5,758

155,293

SPDR DB International Government Inflation-Protected Bond ETF

21,400

1,104,240

WisdomTree Dreyfus Brazilian Real ETF (a)

7,600

171,912

WisdomTree Dreyfus Chinese Yuan ETF (a)

7,700

193,732

WisdomTree Dreyfus Indian Rupee ETF (a)

7,700

174,636

TOTAL OTHER

(Cost $2,817,205)

2,571,156

Cash Equivalents - 2.1%

Maturity Amount

Value

Investments in repurchase agreements in a joint trading account at 0.17%, dated 9/30/08 due 10/1/08 (Collateralized by U.S. Treasury Obligations) #

(Cost $2,349,000)

$ 2,349,000

$ 2,349,000

Short-Term Funds - 9.7%

 

Shares

 

 

Fidelity Institutional Money Market Portfolio
Institutional Class (b)

(Cost $10,833,368)

10,833,368

10,833,368

TOTAL INVESTMENT IN SECURITIES - 100%

(Cost $127,800,868)

$ 112,566,444

Legend

(a) Non-income producing

(b) Affiliated company

Security Type Abbreviations

ETF - Exchange-Traded Fund

ETN - Exchange-Traded Note

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

Repurchase Agreement / Counterparty

Value

$2,349,000 due 10/01/08 at 0.17%

BNP Paribas Securities Corp.

$ 1,734,019

Barclays Capital, Inc.

168,894

ING Financial Markets LLC

446,087

 

$ 2,349,000

Affiliated Underlying Funds

Information regarding the Fund's fiscal year to date purchases and sales of the affiliated Underlying Funds and income earned by the Fund from investments in affiliated Underlying Funds is as follows:

Fund

Value, beginning of period

Purchases

Sales
Proceeds

Income

Value,
end of
period

Fidelity Advisor 130/30 Large Cap Institutional Class

$ -

$ 2,796,656

$ 111,018

$ -

$ 2,237,787

Fidelity Blue Chip Growth Fund

444,481

447,210

210,903

2,915

556,758

Fidelity Canada Fund

169,084

333,976

34,672

-

394,565

Fund

Value, beginning of period

Purchases

Sales
Proceeds

Income

Value,
end of
period

Fidelity China Region Fund

142,380

351,140

35,091

-

332,729

Fidelity Disciplined Equity Fund

717,241

3,379,369

196,507

-

3,303,154

Fidelity Emerging Markets Fund

297,782

693,525

69,923

-

597,628

Fidelity Europe Fund

345,247

345,883

263,352

-

279,541

Fidelity Floating Rate High Income Fund

609,666

1,421,532

102,966

45,685

1,811,137

Fidelity High Income Fund

607,690

1,451,274

103,465

71,471

1,757,632

Fidelity Inflation Protected Bond Fund

3,642,705

7,764,350

503,729

80,307

10,561,464

Fidelity Institutional Money Market Portfolio Institutional Class

1,603,844

20,207,126

10,977,602

171,567

10,833,368

Fidelity International Real Estate Fund

280,906

150,707

80,190

-

211,753

Fidelity International Small Cap Opportunities Fund

137,234

349,005

34,959

-

308,911

Fidelity Investment Grade Bond Fund

3,981,503

8,425,821

533,833

276,992

11,175,629

Fidelity Japan Fund

339,403

338,310

358,228

-

226,988

Fidelity Latin America Fund

148,712

349,891

34,962

-

328,516

Fidelity Leveraged Company Stock Fund

175,313

492,532

111,006

625

407,478

Fidelity Mega Cap Stock Fund

248,246

4,098,495

136,393

20,646

3,511,884

Fidelity New Markets Income Fund

917,387

2,149,386

146,959

82,879

2,636,893

Fidelity Real Estate Income Fund

299,331

166,520

80,191

15,059

327,675

Fidelity Real Estate Investment Portfolio

277,123

154,737

80,189

3,189

349,787

Fidelity Select Biotechnology Portfolio

337,279

350,035

263,357

-

435,298

Fidelity Select Consumer Discretionary Portfolio

461,775

1,339,586

90,716

-

1,525,543

Fidelity Select Consumer Staples Portfolio

524,718

1,670,546

114,876

142

1,924,557

Fidelity Select Defense & Aerospace Portfolio

344,605

387,454

263,355

881

297,550

Fidelity Select Energy Portfolio

662,466

2,213,964

157,543

199

1,949,090

Fidelity Select Energy Services Portfolio

185,066

499,675

35,654

-

476,505

Fidelity Select Financial Services Portfolio

988,074

2,555,610

164,484

1,214

2,647,339

Fidelity Select Gold Portfolio

156,080

483,625

35,649

-

466,826

Fidelity Select Health Care Portfolio

631,545

1,920,634

124,837

1,227

2,130,495

Fund

Value, beginning of period

Purchases

Sales
Proceeds

Income

Value,
end of
period

Fidelity Select Industrials Portfolio

607,200

1,809,251

122,092

1,102

1,920,801

Fidelity Select Materials Portfolio

176,730

577,332

40,136

-

538,092

Fidelity Select Natural Gas Portfolio

16,861

831,394

89,974

-

530,369

Fidelity Select Software & Computer Services Portfolio

362,234

173,176

192,830

-

231,700

Fidelity Select Technology Portfolio

852,533

2,525,403

176,086

-

2,426,275

Fidelity Select Telecommunications Portfolio

189,360

521,691

34,911

749

519,357

Fidelity Select Utilities Growth Portfolio

183,689

1,181,957

74,865

-

978,571

Fidelity Strategic Real
Return Fund

1,072,188

2,306,868

178,828

48,682

2,959,802

Total

$ 23,137,681

$ 77,215,646

$ 16,366,331

$ 835,531

$ 74,109,447

Other Information

The following is a summary of the inputs used, as of September 30, 2008, involving the Fund's assets carried at value. 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, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section at the end of this listing.

Valuation Inputs at Reporting Date:

Description

Total

Level 1

Level 2

Level 3

Investments in Securities

$ 112,566,444

$ 110,217,444

$ 2,349,000

$ -

Income Tax Information

At September 30, 2008, the aggregate cost of investment securities for income tax purposes was $127,882,508. Net unrealized depreciation aggregated $15,316,064, of which $433,307 related to appreciated investment securities and $15,749,371 related to depreciated investment securities.

Investment Valuation

Investments in the affiliated Underlying Funds are valued at their closing net asset value (NAV) each business day. Exchange Traded Funds (ETFs) are valued at their 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. In the event there were no sales during the day or closing prices are not available, ETFs are valued at the last quoted price. Security transactions are accounted for as of trade date. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost, which approximates value.

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. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under these procedures may differ from published prices for the same securities.

The Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:

Level 1 - Quoted prices in active markets for identical securities.

Level 2 - Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others.

Level 3 - Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available.

Changes in valuation techniques may result in transfers in or out of an investment's assigned level within 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 visit advisor.fidelity.com or call Fidelity at 1-877-208-0098 for a free copy of 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 Fixed-Income Trust'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 Fixed-Income Trust

By:

/s/John R. Hebble

 

John R. Hebble

 

President and Treasurer

 

 

Date:

December 5, 2008

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/John R. Hebble

 

John R. Hebble

 

President and Treasurer

 

 

Date:

December 5, 2008

By:

/s/Christine Reynolds

 

Christine Reynolds

 

Chief Financial Officer

 

 

Date:

December 5, 2008