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)

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:

November 30

Date of reporting period:

August 31, 2007

Item 1. Schedule of Investments

Quarterly Holdings Report

for

Fidelity ® Strategic
Dividend & Income Fund

August 31, 2007

1.806764.103

SDI-QTLY-1007

Investments August 31, 2007 (Unaudited)

Showing Percentage of Net Assets

Corporate Bonds - 15.1%

Principal Amount

Value

Convertible Bonds - 14.1%

CONSUMER DISCRETIONARY - 0.6%

Diversified Consumer Services - 0.2%

Stewart Enterprises, Inc.:

3.125% 7/15/14 (f)

$ 2,000,000

$ 1,773,200

3.375% 7/15/16 (f)

2,000,000

1,758,800

3,532,000

Hotels, Restaurants & Leisure - 0.2%

Six Flags, Inc. 4.5% 5/15/15

3,300,000

2,883,375

Media - 0.2%

Charter Communications, Inc. 5.875% 11/16/09

2,413,000

3,234,144

Specialty Retail - 0.0%

Asbury Automotive Group, Inc. 3% 9/15/12 (f)

1,000,000

854,913

TOTAL CONSUMER DISCRETIONARY

10,504,432

CONSUMER STAPLES - 0.3%

Beverages - 0.1%

Molson Coors Brewing Co. 2.5% 7/30/13

2,000,000

2,095,000

Food & Staples Retailing - 0.2%

Nash-Finch Co. 1.6314% 3/15/35 (d)

7,070,000

3,240,181

TOTAL CONSUMER STAPLES

5,335,181

ENERGY - 2.8%

Energy Equipment & Services - 1.0%

Global Industries Ltd. 2.75% 8/1/27 (f)

1,500,000

1,398,750

Grey Wolf, Inc. 5.32% 4/1/24 (g)

2,300,000

2,873,850

Halliburton Co. 3.125% 7/15/23

4,260,000

7,902,300

Hornbeck Offshore Services, Inc. 1.625% 11/15/26 (d)(f)

1,000,000

1,005,500

SESI LLC 1.5% 12/15/26 (d)(f)

3,000,000

3,141,900

16,322,300

Oil, Gas & Consumable Fuels - 1.8%

Chesapeake Energy Corp.:

2.5% 5/15/37

5,060,000

4,767,532

2.75% 11/15/35 (f)

5,000,000

5,134,500

2.75% 11/15/35

10,200,000

10,474,380

Corporate Bonds - continued

Principal Amount

Value

Convertible Bonds - continued

ENERGY - continued

Oil, Gas & Consumable Fuels - continued

McMoRan Exploration Co. 6% 7/2/08

$ 3,000,000

$ 3,437,100

Peabody Energy Corp. 4.75% 12/15/66

8,000,000

7,900,000

31,713,512

TOTAL ENERGY

48,035,812

FINANCIALS - 0.8%

Real Estate Investment Trusts - 0.8%

Health Care REIT, Inc. 4.75% 12/1/26

3,380,000

3,357,016

Hospitality Properties Trust 3.8% 3/15/27

2,130,000

1,992,828

Ventas, Inc. 3.875% 11/15/11 (f)

8,250,000

8,469,450

13,819,294

HEALTH CARE - 1.9%

Biotechnology - 0.2%

Amgen, Inc. 0.375% 2/1/13

4,500,000

3,853,125

Health Care Equipment & Supplies - 0.7%

Beckman Coulter, Inc.:

2.5% 12/15/36 (f)

2,000,000

2,285,000

2.5% 12/15/36

350,000

399,875

Inverness Medical Innovations, Inc. 3% 5/15/16 (f)

4,000,000

4,700,000

Medtronic, Inc. 1.625% 4/15/13

2,000,000

2,139,200

SonoSite, Inc. 3.75% 7/15/14

3,000,000

2,985,900

12,509,975

Health Care Providers & Services - 0.4%

LifePoint Hospitals, Inc. 3.5% 5/15/14

6,250,000

5,345,014

Omnicare, Inc. 3.25% 12/15/35

1,000,000

783,750

6,128,764

Life Sciences Tools & Services - 0.4%

Fisher Scientific International, Inc.:

2.5% 10/1/23 (f)

565,000

1,316,789

2.5% 10/1/23

2,400,000

5,593,440

6,910,229

Corporate Bonds - continued

Principal Amount

Value

Convertible Bonds - continued

HEALTH CARE - continued

Pharmaceuticals - 0.2%

Alpharma, Inc. 2.125% 3/15/27

$ 3,000,000

$ 2,780,625

MGI Pharma, Inc. 1.6821% 3/2/24 (d)

2,000,000

1,403,200

4,183,825

TOTAL HEALTH CARE

33,585,918

INDUSTRIALS - 1.9%

Aerospace & Defense - 0.3%

AAR Corp. 1.75% 2/1/26 (f)

1,000,000

1,220,200

Alliant Techsystems, Inc. 3% 8/15/24

2,680,000

3,981,024

5,201,224

Airlines - 0.3%

UAL Corp.:

4.5% 6/30/21 (f)

2,000,000

3,008,400

4.5% 6/30/21

310,000

466,302

US Airways Group, Inc. 7% 9/30/20 (f)

490,000

794,413

4,269,115

Building Products - 0.0%

Trex Co., Inc. 6% 7/1/12

580,000

504,600

Commercial Services & Supplies - 0.1%

FTI Consulting, Inc. 3.75% 7/15/12 (f)

1,000,000

1,821,204

Construction & Engineering - 0.5%

Fluor Corp. 1.5% 2/15/24

2,000,000

4,550,492

Quanta Services, Inc. 3.75% 4/30/26 (f)

3,000,000

4,188,099

8,738,591

Electrical Equipment - 0.2%

GrafTech International Ltd. 1.625% 1/15/24

2,720,000

3,060,000

Machinery - 0.2%

Greenbrier Companies, Inc.:

2.375% 5/15/26 (f)

1,000,000

830,256

2.375% 5/15/26

2,000,000

1,660,513

Trinity Industries, Inc. 3.875% 6/1/36

1,000,000

1,020,971

3,511,740

Corporate Bonds - continued

Principal Amount

Value

Convertible Bonds - continued

INDUSTRIALS - continued

Marine - 0.3%

Horizon Lines, Inc. 4.25% 8/15/12 (f)

$ 5,000,000

$ 5,039,500

TOTAL INDUSTRIALS

32,145,974

INFORMATION TECHNOLOGY - 5.5%

Communications Equipment - 1.1%

Ciena Corp. 0.25% 5/1/13

1,560,000

1,658,102

Finisar Corp. 2.5% 10/15/10

6,920,000

8,814,350

JDS Uniphase Corp. 1% 5/15/26 (f)

5,000,000

4,066,000

L-3 Communications Corp. 3% 8/1/35

2,000,000

2,275,000

Symmetricom, Inc. 3.25% 6/15/25

2,000,000

1,581,600

18,395,052

Computers & Peripherals - 0.6%

EMC Corp.:

1.75% 12/1/13 (f)

1,800,000

2,445,750

1.75% 12/1/13

930,000

1,263,638

SanDisk Corp. 1% 5/15/13

7,000,000

6,539,400

10,248,788

Electronic Equipment & Instruments - 1.5%

Anixter International, Inc. 1% 2/15/13 (f)

2,000,000

2,318,400

Flextronics International Ltd. 1% 8/1/10

6,420,000

6,117,618

Itron, Inc. 2.5% 8/1/26

10,000,000

14,232,000

Merix Corp. 4% 5/15/13 (f)

1,000,000

802,500

Newport Corp. 2.5% 2/15/12 (f)

1,000,000

872,000

Solectron Corp. 0.5% 2/15/34

1,000,000

957,500

25,300,018

IT Services - 0.2%

BearingPoint, Inc. 3.1% 12/15/24 (f)

2,000,000

1,644,858

DST Systems, Inc. 4.125% 8/15/23

1,220,000

1,998,205

3,643,063

Semiconductors & Semiconductor Equipment - 1.8%

Advanced Micro Devices, Inc.:

6% 5/1/15 (f)

5,000,000

4,318,750

6% 5/1/15

4,250,000

3,670,938

Amkor Technology, Inc. 2.5% 5/15/11

1,250,000

1,276,250

Conexant Systems, Inc. 4% 3/1/26

3,000,000

2,574,600

Corporate Bonds - continued

Principal Amount

Value

Convertible Bonds - continued

INFORMATION TECHNOLOGY - continued

Semiconductors & Semiconductor Equipment - continued

Credence Systems Corp.:

3.5% 5/15/10 (f)

$ 2,000,000

$ 1,780,000

3.5% 5/15/10

1,000,000

890,000

Intel Corp. 2.95% 12/15/35

3,500,000

3,615,850

ON Semiconductor Corp.:

0% 4/15/24

6,500,000

8,347,950

1.875% 12/15/25 (f)

1,250,000

2,240,875

Photronics, Inc. 2.25% 4/15/08

3,000,000

2,920,500

31,635,713

Software - 0.3%

Borland Software Corp. 2.75% 2/15/12 (f)

2,000,000

1,842,500

Cadence Design Systems, Inc. 1.5% 12/15/13 (f)

2,000,000

2,273,800

Symantec Corp. 1% 6/15/13 (f)

1,000,000

1,119,900

5,236,200

TOTAL INFORMATION TECHNOLOGY

94,458,834

TELECOMMUNICATION SERVICES - 0.3%

Diversified Telecommunication Services - 0.3%

Level 3 Communications, Inc. 3.5% 6/15/12

2,000,000

2,299,400

Time Warner Telecom, Inc. 2.375% 4/1/26

2,000,000

2,644,600

4,944,000

TOTAL CONVERTIBLE BONDS

242,829,445

Nonconvertible Bonds - 1.0%

FINANCIALS - 0.7%

Capital Markets - 0.3%

Goldman Sachs Group, Inc. 5.793%

2,000,000

1,821,800

JPMorgan Chase Capital XXII 6.45% 2/2/37

3,000,000

2,663,700

Lehman Brothers Holdings, Inc.:

6.3713% (g)

1,000,000

897,691

5.857% (g)

1,000,000

918,399

6,301,590

Commercial Banks - 0.4%

Capital One Capital IV 6.745% 2/17/37 (g)

2,000,000

1,646,060

Corporate Bonds - continued

Principal Amount

Value

Nonconvertible Bonds - continued

FINANCIALS - continued

Commercial Banks - continued

HBOS plc 6.657% (f)(g)

$ 5,000,000

$ 4,437,500

Wells Fargo Capital X 5.95% 12/15/36

1,000,000

942,077

7,025,637

TOTAL FINANCIALS

13,327,227

UTILITIES - 0.3%

Multi-Utilities - 0.3%

Wisconsin Energy Corp. 6.25% 5/15/67 (g)

5,000,000

4,843,295

TOTAL NONCONVERTIBLE BONDS

18,170,522

TOTAL CORPORATE BONDS

(Cost $246,017,137)

260,999,967

Common Stocks - 65.2%

Shares

CONSUMER DISCRETIONARY - 4.6%

Automobiles - 0.1%

Winnebago Industries, Inc.

79,000

2,106,930

Diversified Consumer Services - 0.5%

Coinmach Service Corp. unit

156,800

3,002,720

Service Corp. International

355,100

4,339,322

Stewart Enterprises, Inc. Class A

225,800

1,618,986

8,961,028

Hotels, Restaurants & Leisure - 1.6%

Accor SA

31,000

2,661,092

Aristocrat Leisure Ltd. (e)

219,900

2,519,372

Centerplate, Inc. unit

268,800

3,948,672

Gaylord Entertainment Co. (a)

30,700

1,576,445

IHOP Corp.

73,400

4,614,658

McDonald's Corp.

128,849

6,345,813

Starwood Hotels & Resorts Worldwide, Inc.

41,500

2,536,480

WMS Industries, Inc. (a)

94,300

2,776,192

26,978,724

Household Durables - 0.7%

Bassett Furniture Industries, Inc.

80,957

934,244

Common Stocks - continued

Shares

Value

CONSUMER DISCRETIONARY - continued

Household Durables - continued

Beazer Homes USA, Inc.

19,500

$ 206,115

Black & Decker Corp.

26,400

2,290,200

La-Z-Boy, Inc.

117,277

1,130,550

The Stanley Works

41,510

2,355,277

Whirlpool Corp.

53,000

5,109,730

12,026,116

Internet & Catalog Retail - 0.1%

B2W Companhia Global Do Varejo

15,200

581,040

FTD Group, Inc.

30,500

541,985

1,123,025

Leisure Equipment & Products - 0.4%

Brunswick Corp.

68,000

1,710,200

Eastman Kodak Co.

105,700

2,819,019

MarineMax, Inc. (a)

24,400

447,496

Polaris Industries, Inc.

32,900

1,570,975

6,547,690

Media - 0.5%

Charter Communications, Inc. Class A (a)

977,700

2,718,006

News Corp.:

Class A

86,700

1,753,941

Class B

8,400

182,616

R.H. Donnelley Corp. (a)

47,100

2,770,893

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

41,865

1,651,993

9,077,449

Multiline Retail - 0.2%

Retail Ventures, Inc. (a)

39,791

460,382

Sears Holdings Corp. (a)

15,400

2,210,824

Tuesday Morning Corp.

90,385

953,562

3,624,768

Specialty Retail - 0.2%

AutoZone, Inc. (a)

6,500

788,385

Collective Brands, Inc. (a)

80,200

1,895,126

Foot Locker, Inc.

79,800

1,333,458

4,016,969

Textiles, Apparel & Luxury Goods - 0.3%

G-III Apparel Group Ltd. (a)

83,500

1,432,025

Liz Claiborne, Inc.

69,000

2,357,730

Common Stocks - continued

Shares

Value

CONSUMER DISCRETIONARY - continued

Textiles, Apparel & Luxury Goods - continued

Lululemon Athletica, Inc.

2,100

$ 71,547

VF Corp.

22,000

1,756,700

5,618,002

TOTAL CONSUMER DISCRETIONARY

80,080,701

CONSUMER STAPLES - 2.8%

Beverages - 0.1%

Remy Cointreau SA

23,200

1,656,814

Food & Staples Retailing - 0.2%

Rite Aid Corp. (a)

541,700

2,746,419

Food Products - 1.2%

B&G Foods, Inc. unit

156,900

3,258,813

BioMar Holding AS

46,600

2,049,785

Bunge Ltd.

28,900

2,642,616

Cermaq ASA

135,500

2,324,424

Chiquita Brands International, Inc. (a)(e)

234,337

3,655,657

Marine Harvest ASA (a)

2,100,000

2,464,061

Ralcorp Holdings, Inc. (a)

21,200

1,309,948

Tyson Foods, Inc. Class A

145,400

3,133,370

20,838,674

Household Products - 0.4%

Procter & Gamble Co.

115,800

7,562,898

Personal Products - 0.4%

Avon Products, Inc.

136,600

4,692,210

Prestige Brands Holdings, Inc. (a)

133,000

1,459,010

6,151,220

Tobacco - 0.5%

Altria Group, Inc.

92,800

6,441,248

Japan Tobacco, Inc.

460

2,554,121

8,995,369

TOTAL CONSUMER STAPLES

47,951,394

ENERGY - 7.9%

Energy Equipment & Services - 3.0%

Diamond Offshore Drilling, Inc.

84,300

8,864,988

GlobalSantaFe Corp.

122,800

8,668,452

National Oilwell Varco, Inc. (a)

147,689

18,904,192

Common Stocks - continued

Shares

Value

ENERGY - continued

Energy Equipment & Services - continued

Oceaneering International, Inc. (a)

99,280

$ 6,667,645

Transocean, Inc. (a)

81,200

8,533,308

51,638,585

Oil, Gas & Consumable Fuels - 4.9%

Cabot Oil & Gas Corp.

127,400

4,247,516

Canadian Natural Resources Ltd.

95,600

6,535,073

CONSOL Energy, Inc.

101,100

4,031,868

Exxon Mobil Corp.

57,400

4,920,902

Noble Energy, Inc.

62,000

3,724,340

Peabody Energy Corp.

88,600

3,766,386

Plains Exploration & Production Co. (a)

180,000

6,755,400

Range Resources Corp.

113,022

4,103,829

Teekay Corp.

142,050

8,233,218

Valero Energy Corp.

498,761

34,170,110

Williams Companies, Inc.

101,900

3,158,900

83,647,542

TOTAL ENERGY

135,286,127

FINANCIALS - 24.9%

Capital Markets - 1.5%

Ares Capital Corp.

153,900

2,527,038

Bank New York Mellon Corp.

64,439

2,605,269

Bear Stearns Companies, Inc.

60,400

6,563,064

Franklin Resources, Inc.

16,600

2,187,382

Janus Capital Group, Inc.

92,500

2,459,575

Merrill Lynch & Co., Inc. (depositary shares) Series 1, unit

277,700

6,595,375

T. Rowe Price Group, Inc.

41,300

2,119,516

25,057,219

Commercial Banks - 1.6%

Cathay General Bancorp

59,846

1,945,593

Commerce Bancorp, Inc.

72,400

2,659,252

East West Bancorp, Inc.

100,131

3,584,690

PNC Financial Services Group, Inc.

45,500

3,201,835

UCBH Holdings, Inc.

125,600

2,087,472

Wachovia Corp.

85,209

4,173,537

Wells Fargo & Co.

262,400

9,588,096

27,240,475

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Consumer Finance - 0.1%

Advance America Cash Advance Centers, Inc.

98,400

$ 1,234,920

Discover Financial Services (a)

23,550

544,947

1,779,867

Diversified Financial Services - 3.4%

Bank of America Corp.

355,314

18,007,314

Citigroup, Inc.

448,100

21,006,928

JPMorgan Chase & Co.

451,704

20,109,862

59,124,104

Insurance - 4.0%

AFLAC, Inc.

68,100

3,630,411

American Equity Investment Life Holding Co.

6,066

61,934

American International Group, Inc.

175,600

11,589,600

Aspen Insurance Holdings Ltd.

367,618

9,223,536

Axis Capital Holdings Ltd.

107,495

3,880,570

Endurance Specialty Holdings Ltd.

245,195

9,775,925

Everest Re Group Ltd.

39,300

4,003,884

Hartford Financial Services Group, Inc.

35,100

3,120,741

MetLife, Inc.

46,000

2,946,300

National Financial Partners Corp.

57,400

2,801,120

Platinum Underwriters Holdings Ltd.

280,566

9,730,029

Principal Financial Group, Inc.

51,000

2,829,990

Prudential Financial, Inc.

45,100

4,049,078

Universal American Financial Corp. (a)

101,900

2,115,444

69,758,562

Real Estate Investment Trusts - 12.1%

Alexandria Real Estate Equities, Inc.

78,400

7,317,072

American Financial Realty Trust (SBI)

204,500

1,693,260

Annaly Capital Management, Inc.

184,700

2,602,423

Archstone-Smith Trust

79,600

4,680,480

AvalonBay Communities, Inc.

74,860

8,562,487

Boston Properties, Inc.

61,214

6,125,685

BRE Properties, Inc. Class A

106,500

5,915,010

CBL & Associates Properties, Inc.

29,155

960,949

Corporate Office Properties Trust (SBI)

148,700

6,404,509

DCT Industrial Trust, Inc.

305,051

3,117,621

Developers Diversified Realty Corp.

102,100

5,460,308

Duke Realty LP

121,670

4,111,229

Equity Lifestyle Properties, Inc.

34,160

1,663,592

Equity One, Inc.

16,400

429,024

Equity Residential (SBI)

165,680

6,666,963

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Real Estate Investment Trusts - continued

General Growth Properties, Inc.

267,425

$ 13,293,697

GMH Communities Trust

126,100

991,146

Health Care Property Investors, Inc.

153,500

4,669,470

Healthcare Realty Trust, Inc.

105,700

2,639,329

Hersha Hospitality Trust

31,600

345,388

Highwoods Properties, Inc. (SBI)

127,500

4,550,475

Home Properties, Inc.

183,400

9,320,388

Host Hotels & Resorts, Inc.

321,245

7,160,551

Inland Real Estate Corp.

280,800

4,346,784

Kilroy Realty Corp.

91,400

5,587,282

Kimco Realty Corp.

110,238

4,720,391

LaSalle Hotel Properties (SBI)

91,500

3,810,060

Pennsylvania (REIT) (SBI)

48,700

1,842,321

Plum Creek Timber Co., Inc.

45,800

1,920,394

Post Properties, Inc.

35,100

1,400,841

Potlatch Corp.

61,630

2,775,815

ProLogis Trust

204,665

12,312,646

Public Storage

131,436

9,960,220

Rayonier, Inc.

64,220

2,744,763

Simon Property Group, Inc.

174,410

16,554,997

SL Green Realty Corp.

29,100

3,244,941

Strategic Hotel & Resorts, Inc.

266,200

5,475,734

Tanger Factory Outlet Centers, Inc.

94,400

3,593,808

Taubman Centers, Inc.

20,800

1,072,864

Thornburg Mortgage, Inc. (SBI)

218,200

2,570,396

UDR, Inc.

87,340

2,193,107

Unibail-Rodamco

2,600

626,068

Ventas, Inc.

102,550

3,905,104

Vornado Realty Trust

85,850

9,150,752

208,490,344

Real Estate Management & Development - 0.4%

Brookfield Properties Corp.

124,000

2,861,921

CB Richard Ellis Group, Inc. Class A (a)

43,900

1,295,928

Grubb & Ellis Co. (a)

70,800

641,448

Mitsubishi Estate Co. Ltd.

96,000

2,569,837

7,369,134

Thrifts & Mortgage Finance - 1.8%

Countrywide Financial Corp.

203,600

4,041,460

Downey Financial Corp.

23,800

1,346,842

Fannie Mae

129,500

8,496,495

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Thrifts & Mortgage Finance - continued

FirstFed Financial Corp., Delaware (a)

25,600

$ 1,286,400

Freddie Mac

136,300

8,397,443

Hudson City Bancorp, Inc.

219,600

3,122,712

New York Community Bancorp, Inc.

213,100

3,769,739

30,461,091

TOTAL FINANCIALS

429,280,796

HEALTH CARE - 2.6%

Biotechnology - 0.1%

Amgen, Inc. (a)

24,700

1,237,717

Health Care Equipment & Supplies - 0.9%

American Medical Systems Holdings, Inc. (a)

75,300

1,385,520

Becton, Dickinson & Co.

72,700

5,593,538

C.R. Bard, Inc.

65,400

5,453,706

Covidien Ltd. (a)

36,625

1,458,774

Varian Medical Systems, Inc. (a)

56,374

2,276,946

16,168,484

Health Care Providers & Services - 0.5%

Amedisys, Inc. (a)

70,907

2,678,866

Brookdale Senior Living, Inc.

52,100

1,907,902

Capital Senior Living Corp. (a)

46,700

378,270

DaVita, Inc. (a)

51,700

2,973,784

Emeritus Corp. (a)

16,200

439,830

Henry Schein, Inc. (a)

800

46,552

Sun Healthcare Group, Inc. (a)

54,700

813,389

9,238,593

Health Care Technology - 0.2%

Cerner Corp. (a)

47,400

2,703,696

Pharmaceuticals - 0.9%

Merck & Co., Inc.

230,800

11,579,236

MGI Pharma, Inc. (a)

109,500

2,580,915

Wyeth

42,200

1,953,860

16,114,011

TOTAL HEALTH CARE

45,462,501

Common Stocks - continued

Shares

Value

INDUSTRIALS - 6.2%

Aerospace & Defense - 1.3%

General Dynamics Corp.

55,800

$ 4,383,648

Honeywell International, Inc.

107,800

6,052,970

Lockheed Martin Corp.

26,700

2,647,038

Precision Castparts Corp.

23,500

3,062,285

United Technologies Corp.

87,300

6,515,199

22,661,140

Air Freight & Logistics - 0.2%

United Parcel Service, Inc. Class B

37,000

2,806,820

Airlines - 0.2%

Delta Air Lines, Inc. (a)

42,500

717,400

UAL Corp. (a)

19,200

911,424

US Airways Group, Inc. (a)

56,400

1,745,580

3,374,404

Commercial Services & Supplies - 0.5%

Corrections Corp. of America (a)

33,600

862,176

Dun & Bradstreet Corp.

17,400

1,697,370

Equifax, Inc.

21,000

808,920

The Brink's Co.

13,100

751,416

The Geo Group, Inc. (a)

34,700

1,033,019

Waste Management, Inc.

87,500

3,296,125

8,449,026

Construction & Engineering - 1.1%

Fluor Corp.

91,148

11,589,468

Shaw Group, Inc. (a)

154,700

7,742,735

19,332,203

Electrical Equipment - 0.1%

Cooper Industries Ltd. Class A

30,500

1,560,685

Industrial Conglomerates - 0.8%

General Electric Co.

259,500

10,086,765

Siemens AG sponsored ADR

28,700

3,596,110

13,682,875

Machinery - 1.4%

Eaton Corp.

18,100

1,705,382

Flowserve Corp.

57,606

4,113,644

Illinois Tool Works, Inc.

47,000

2,733,990

Oshkosh Truck Co.

40,000

2,315,600

Common Stocks - continued

Shares

Value

INDUSTRIALS - continued

Machinery - continued

Pentair, Inc.

82,449

$ 3,061,331

SPX Corp.

115,400

10,391,770

24,321,717

Road & Rail - 0.5%

Kansas City Southern (a)

1,803

54,793

Knight Transportation, Inc.

103,000

1,894,170

Landstar System, Inc.

39,600

1,703,196

P.A.M. Transportation Services, Inc. (a)

48,863

914,227

Union Pacific Corp.

34,500

3,849,165

8,415,551

Trading Companies & Distributors - 0.1%

Rush Enterprises, Inc. Class A (a)

99,669

2,527,606

TOTAL INDUSTRIALS

107,132,027

INFORMATION TECHNOLOGY - 10.3%

Communications Equipment - 1.0%

Alcatel-Lucent SA sponsored ADR

124,200

1,359,990

Avocent Corp. (a)

101,900

3,008,088

Comverse Technology, Inc. (a)

87,300

1,462,275

Juniper Networks, Inc. (a)

98,400

3,239,328

Motorola, Inc.

167,200

2,834,040

Nokia Corp. sponsored ADR

152,300

5,007,624

16,911,345

Computers & Peripherals - 2.0%

Dell, Inc. (a)

105,000

2,966,250

Diebold, Inc.

83,564

3,665,953

Hewlett-Packard Co.

110,800

5,467,980

Intermec, Inc. (a)

144,900

3,557,295

International Business Machines Corp.

75,000

8,751,750

NCR Corp. (a)

77,100

3,837,267

SanDisk Corp. (a)

80,800

4,529,648

Sun Microsystems, Inc. (a)

141,900

760,584

33,536,727

Electronic Equipment & Instruments - 1.5%

Agilent Technologies, Inc. (a)

71,000

2,584,400

Amphenol Corp. Class A

246,400

8,897,504

Arrow Electronics, Inc. (a)

98,700

4,141,452

Avnet, Inc. (a)

95,700

3,761,967

Common Stocks - continued

Shares

Value

INFORMATION TECHNOLOGY - continued

Electronic Equipment & Instruments - continued

Flextronics International Ltd. (a)

264,400

$ 3,011,516

Ingram Micro, Inc. Class A (a)

87,000

1,708,680

Tyco Electronics Ltd. (a)

39,025

1,360,802

25,466,321

Internet Software & Services - 0.4%

Google, Inc. Class A (sub. vtg.) (a)

7,500

3,864,375

VeriSign, Inc. (a)

117,900

3,796,380

7,660,755

IT Services - 0.2%

Mastercard, Inc. Class A

28,600

3,917,914

Semiconductors & Semiconductor Equipment - 4.0%

Advanced Micro Devices, Inc. (a)

173,600

2,256,800

Advantest Corp. ADR

41,200

1,516,160

Analog Devices, Inc.

47,100

1,737,048

Applied Materials, Inc.

181,000

3,866,160

ASML Holding NV (NY Shares) (a)

134,100

3,978,747

Axcelis Technologies, Inc. (a)

219,100

1,031,961

Broadcom Corp. Class A (a)

72,800

2,511,600

Cirrus Logic, Inc. (a)

166,700

1,135,227

Cypress Semiconductor Corp. (a)

78,300

1,960,632

Diodes, Inc. (a)

104,283

3,160,818

Fairchild Semiconductor International, Inc. (a)

125,500

2,354,380

FormFactor, Inc. (a)

70,100

3,179,736

Hittite Microwave Corp. (a)

102,359

4,336,951

Integrated Device Technology, Inc. (a)

247,129

3,865,098

Intel Corp.

145,500

3,746,625

Intersil Corp. Class A

74,500

2,482,340

Lam Research Corp. (a)

47,000

2,520,610

Linear Technology Corp.

50,600

1,719,894

Marvell Technology Group Ltd. (a)

98,700

1,635,459

Maxim Integrated Products, Inc.

83,400

2,502,834

Microchip Technology, Inc.

45,700

1,760,364

Micron Technology, Inc. (a)

76,800

879,360

National Semiconductor Corp.

98,500

2,592,520

Nec Electronics Corp. (a)

68,600

1,889,677

ON Semiconductor Corp. (a)

531,000

6,223,320

RF Micro Devices, Inc. (a)(e)

146,300

870,485

Saifun Semiconductors Ltd. (a)

30,400

305,824

Volterra Semiconductor Corp. (a)

243,629

2,645,811

68,666,441

Common Stocks - continued

Shares

Value

INFORMATION TECHNOLOGY - continued

Software - 1.2%

Business Objects SA sponsored ADR (a)

89,920

$ 3,948,387

Cadence Design Systems, Inc. (a)

109,900

2,387,028

Microsoft Corp.

124,400

3,574,012

Nintendo Co. Ltd.

7,600

3,535,520

Symantec Corp. (a)

123,000

2,313,630

Ubisoft Entertainment SA (a)

85,704

5,320,701

21,079,278

TOTAL INFORMATION TECHNOLOGY

177,238,781

MATERIALS - 1.4%

Chemicals - 0.6%

Agrium, Inc.

61,900

2,828,157

Arkema (a)

25,700

1,595,865

Celanese Corp. Class A

61,400

2,205,488

Monsanto Co.

55,100

3,842,674

10,472,184

Metals & Mining - 0.7%

Alcoa, Inc.

91,400

3,338,842

Titanium Metals Corp. (a)

261,200

8,188,620

11,527,462

Paper & Forest Products - 0.1%

Neenah Paper, Inc.

46,175

1,601,811

TOTAL MATERIALS

23,601,457

TELECOMMUNICATION SERVICES - 2.7%

Diversified Telecommunication Services - 2.4%

AT&T, Inc.

588,915

23,480,041

CenturyTel, Inc. (e)

48,689

2,336,098

Level 3 Communications, Inc. (a)

287,274

1,502,443

Qwest Communications International, Inc. (a)

301,900

2,702,005

Verizon Communications, Inc.

292,600

12,254,088

42,274,675

Common Stocks - continued

Shares

Value

TELECOMMUNICATION SERVICES - continued

Wireless Telecommunication Services - 0.3%

NII Holdings, Inc. (a)

11,200

$ 886,816

Sprint Nextel Corp.

193,900

3,668,588

4,555,404

TOTAL TELECOMMUNICATION SERVICES

46,830,079

UTILITIES - 1.8%

Electric Utilities - 0.7%

Entergy Corp.

38,300

3,968,646

PPL Corp.

181,111

8,740,417

12,709,063

Independent Power Producers & Energy Traders - 0.7%

AES Corp. (a)

342,500

6,202,675

Constellation Energy Group, Inc.

77,600

6,436,144

Mirant Corp. (a)

885

34,488

12,673,307

Multi-Utilities - 0.4%

CMS Energy Corp.

259,300

4,231,776

Public Service Enterprise Group, Inc.

23,500

1,997,265

6,229,041

TOTAL UTILITIES

31,611,411

TOTAL COMMON STOCKS

(Cost $988,610,734)

1,124,475,274

Preferred Stocks - 15.8%

Convertible Preferred Stocks - 4.2%

CONSUMER DISCRETIONARY - 0.2%

Automobiles - 0.1%

General Motors Corp. Series C, 6.25%

98,500

2,093,125

Hotels, Restaurants & Leisure - 0.0%

Six Flags, Inc. 7.25% PIERS

2,100

40,425

Media - 0.1%

Emmis Communications Corp. Series A, 6.25%

10,100

426,321

TOTAL CONSUMER DISCRETIONARY

2,559,871

Preferred Stocks - continued

Shares

Value

Convertible Preferred Stocks - continued

ENERGY - 1.0%

Oil, Gas & Consumable Fuels - 1.0%

Chesapeake Energy Corp.:

4.50%

20,500

$ 1,947,500

6.25%

8,000

2,105,520

El Paso Corp. 4.99%

10,000

13,751,947

17,804,967

FINANCIALS - 0.2%

Diversified Financial Services - 0.1%

Carriage Services Capital Trust 7.00% TIDES

45,000

1,800,000

Real Estate Investment Trusts - 0.1%

HRPT Properties Trust 6.50%

40,000

892,800

TOTAL FINANCIALS

2,692,800

INDUSTRIALS - 0.1%

Road & Rail - 0.1%

Kansas City Southern:

4.25%

1,370

1,304,853

5.125%

1,000

1,199,690

2,504,543

MATERIALS - 1.1%

Chemicals - 0.7%

Celanese Corp. 4.25%

252,600

11,788,842

Containers & Packaging - 0.1%

Owens-Illinois, Inc. 4.75%

63,510

2,813,493

Metals & Mining - 0.3%

Freeport-McMoRan Copper & Gold, Inc. 5.50%

2,550

4,889,753

TOTAL MATERIALS

19,492,088

UTILITIES - 1.6%

Electric Utilities - 0.5%

AES Trust VII 6.00%

180,700

8,854,300

Independent Power Producers & Energy Traders - 0.5%

NRG Energy, Inc.:

4.00% (f)

3,900

7,662,759

Series A, 5.75%

1,000

337,300

8,000,059

Preferred Stocks - continued

Shares

Value

Convertible Preferred Stocks - continued

UTILITIES - continued

Multi-Utilities - 0.6%

CMS Energy Corp. 4.50%

116,000

$ 9,926,120

TOTAL UTILITIES

26,780,479

TOTAL CONVERTIBLE PREFERRED STOCKS

71,834,748

Nonconvertible Preferred Stocks - 11.6%

CONSUMER DISCRETIONARY - 0.0%

Media - 0.0%

CBS Corp. 6.75%

40,000

953,600

CONSUMER STAPLES - 0.1%

Food Products - 0.1%

H.J. Heinz Finance Co. 6.226%

10

1,005,000

ENERGY - 0.2%

Oil, Gas & Consumable Fuels - 0.2%

Apache Corp. (depositary shares) Series B, 5.68%

29,375

2,673,125

Devon Energy Corp. 6.49%

13,750

1,375,688

4,048,813

FINANCIALS - 8.4%

Capital Markets - 1.5%

Bear Stearns Companies, Inc.:

Series E, 6.155%

15,000

702,600

Series G, 5.49%

15,000

596,250

Deutsche Bank Contingent Capital Trust II 6.55%

80,000

1,920,800

Goldman Sachs Group, Inc.:

Series A, 3.9106%

120,000

2,836,800

Series B, 6.20%

100,000

2,450,000

Series C, 4.9931%

40,000

963,600

Series D

160,000

3,806,400

Lehman Brothers Holdings, Inc.:

(depositary shares) Series F, 6.50%

169,015

4,159,459

Series D, 5.67%

34,900

1,570,500

Merrill Lynch & Co., Inc.:

Series 5, 5.86%

80,000

1,800,800

Preferred Stocks - continued

Shares

Value

Nonconvertible Preferred Stocks - continued

FINANCIALS - continued

Capital Markets - continued

Merrill Lynch & Co., Inc.: - continued

Series H, 3.97%

120,000

$ 2,787,600

Morgan Stanley Capital Trust IV 6.60%

80,000

1,929,600

25,524,409

Commercial Banks - 1.4%

ABN AMRO Capital Funding Trust V 5.90%

20,000

449,000

ABN Amro Capital Funding Trust VII 6.08%

40,400

914,656

Barclays Bank PLC Series 2, 6.625%

40,000

986,800

BNY Capital V 5.95%

115,000

2,582,900

First Tennessee Bank NA, Memphis 3.90% (f)

5,000

4,740,000

Keycorp Capital IX 6.75%

40,000

942,800

Royal Bank of Scotland Group PLC Series R, 6.125%

40,000

930,000

Santander Finance Preferred SA Unipersonal (f)

40,000

900,000

Santander Finance Preferred SA Unipersonal:

6.41%

69,400

1,655,190

6.50% (f)

40,000

930,000

6.80% (f)

160,000

3,880,000

U.S. Bancorp, Delaware Series B, 0.00%

40,000

1,000,000

USB Capital XII 6.30%

80,000

1,848,000

Wachovia Capital Trust IX 6.375%

120,000

2,796,000

24,555,346

Consumer Finance - 0.2%

Ford Motor Credit Co. LLC 7.375%

40,000

780,400

HSBC USA, Inc.:

Series G, 4.9175%

80,000

2,000,800

Series H, 6.50%

40,000

1,052,400

SLM Corp. 4.07%

1,200

89,460

3,923,060

Diversified Financial Services - 1.1%

Bank of America Corp.:

Series D

20,000

507,000

Series E

40,000

952,000

CIT Group, Inc. Series B, 5.189%

15,000

1,290,000

Citigroup Capital XVI Series C, 6.45%

120,000

2,881,200

Citigroup Capital XVII 6.35%

80,000

1,895,200

Deutsche Bank Capital Funding Trust VIII 6.375%

140,000

3,350,200

General Electric Capital Corp. 6.05%

80,000

1,950,400

Preferred Stocks - continued

Shares

Value

Nonconvertible Preferred Stocks - continued

FINANCIALS - continued

Diversified Financial Services - continued

ING Groep NV 6.375%

80,000

$ 1,912,800

Merrill Lynch Capital Trust II 6.45%

200,000

4,740,000

19,478,800

Insurance - 0.2%

American International Group, Inc. 6.45%

80,000

1,948,800

MetLife, Inc. Series A, 4.39%

40,000

1,000,000

2,948,800

Real Estate Investment Trusts - 0.9%

Apartment Investment & Management Co. Series V, 8.00%

79,000

1,962,360

Duke Realty LP (depositary shares) Series K, 6.50%

95,800

2,155,500

Hospitality Properties Trust:

Series B, 8.875%

200,000

5,044,000

Series C, 7.00%

100,000

2,250,000

Host Hotels & Resorts, Inc. Series E, 8.875%

20,000

506,200

Public Storage Series M, 6.625%

80,000

1,830,400

Vornado Realty Trust Series E, 7.00%

40,000

941,600

14,690,060

Thrifts & Mortgage Finance - 3.1%

Countrywide Capital V 7.00%

80,000

1,500,000

Fannie Mae:

5.10%

27,562

1,163,116

7.00%

42,200

2,250,526

Series H, 5.81%

71,200

3,417,600

Series I, 5.375%

5,000

227,500

Series L, 5.125%

140,900

6,065,745

Series N, 5.50%

92,650

4,238,738

Freddie Mac:

5.30%

40,000

1,720,000

5.57%

546,000

12,732,720

5.90%

40,000

970,000

6.02%

20,000

498,800

Series F, 5.00%

58,500

2,515,500

Series H, 5.10%

10,300

453,200

Series K, 5.79%

35,200

1,672,000

Series O, 5.81%

19,500

937,950

Series R, 5.70%

117,000

5,522,400

Series S, adj. rate

10,000

515,000

Series T 6.42%

10,000

542,500

Series W, 5.66%

141,600

3,343,176

Preferred Stocks - continued

Shares

Value

Nonconvertible Preferred Stocks - continued

FINANCIALS - continued

Thrifts & Mortgage Finance - continued

Indymac Bank F S B Pasadena Cali 8.50% (f)

80,000

$ 1,040,000

Sovereign Bancorp, Inc. Series C, 7.30%

80,000

2,108,000

53,434,471

TOTAL FINANCIALS

144,554,946

MATERIALS - 0.1%

Chemicals - 0.1%

E.I. du Pont de Nemours & Co. Series B, 4.50%

9,900

777,150

Metals & Mining - 0.0%

Alcoa, Inc. 3.75%

6,400

466,944

TOTAL MATERIALS

1,244,094

TELECOMMUNICATION SERVICES - 0.4%

Diversified Telecommunication Services - 0.4%

AT&T, Inc. 6.375%

281,800

6,782,926

UTILITIES - 2.4%

Electric Utilities - 2.2%

Alabama Power Co.:

4.60%

2,000

156,000

5.20%

120,000

2,644,800

5.30%

88,600

2,084,758

5.625%

80,000

1,936,000

Baltimore Gas & Electric Co. Series 1993, 6.70%

10,000

1,022,000

Duquesne Light Co. 6.50%

106,050

5,010,863

Entergy Louisiana LLC 6.95%

7,500

727,500

FPL Group Capital Trust I 5.875%

20,000

463,000

Mid-American Energy Co. 4.40%

5,000

400,000

Pacific Gas & Electric Co.:

Series A, 5.00%

16,900

376,025

Series B, 5.50%

61,900

1,429,890

Series D 5.00%

69,200

1,515,480

PPL Electric Utilities Corp. 6.25%

230,000

5,520,000

Preferred Stocks - continued

Shares

Value

Nonconvertible Preferred Stocks - continued

UTILITIES - continued

Electric Utilities - continued

Southern California Edison Co.:

4.78%

46,500

$ 1,009,050

5.349%

40,000

4,005,000

6.125%

35,000

3,395,000

Series B, 4.08%

27,271

504,514

Series C:

4.24%

94,600

1,783,210

6.00%

20,000

1,880,000

Series D, 4.32%

70,000

1,372,000

37,235,090

Independent Power Producers & Energy Traders - 0.0%

Heco Capital Trust III 6.50%

12,000

294,000

Multi-Utilities - 0.2%

Consolidated Edison Co. of New York, Inc. Series A, 5.00%

28,705

2,583,450

San Diego Gas & Electric Co. 1.70%

67,548

1,766,806

4,350,256

TOTAL UTILITIES

41,879,346

TOTAL NONCONVERTIBLE PREFERRED STOCKS

200,468,725

TOTAL PREFERRED STOCKS

(Cost $269,468,120)

272,303,473

Preferred Securities - 0.5%

Principal Amount

FINANCIALS - 0.5%

Commercial Banks - 0.3%

PNC Preferred Funding Trust I 6.517% (f)(g)

$ 3,000,000

2,971,540

SunTrust Preferred Capital I 5.853% (g)

1,000,000

991,074

3,962,614

Diversified Financial Services - 0.1%

Wachovia Capital Trust III 5.8% (g)

2,000,000

2,048,581

Preferred Securities - continued

Principal Amount

Value

FINANCIALS - continued

Thrifts & Mortgage Finance - 0.1%

Washington Mutual Preferred Funding Trust I 6.534% (f)(g)

$ 2,000,000

$ 1,872,298

TOTAL PREFERRED SECURITIES

(Cost $8,000,000)

7,883,493

Money Market Funds - 3.6%

Shares

Fidelity Cash Central Fund, 5.48% (b)

57,462,035

57,462,035

Fidelity Securities Lending Cash Central Fund, 5.49% (b)(c)

4,640,260

4,640,260

TOTAL MONEY MARKET FUNDS

(Cost $62,102,295)

62,102,295

Cash Equivalents - 0.3%

Maturity Amount

Investments in repurchase agreements in a joint trading account at 5.02%, dated 8/31/07 due 9/4/07 (Collateralized by U.S. Treasury Obligations) #
(Cost $5,868,000)

$ 5,871,271

5,868,000

TOTAL INVESTMENT PORTFOLIO - 100.5%

(Cost $1,580,066,286)

1,733,632,502

NET OTHER ASSETS - (0.5)%

(9,108,312)

NET ASSETS - 100%

$ 1,724,524,190

Security Type Abbreviations

PIERS - Preferred Income Equity Redeemable Securities

TIDES - Term Income Deferred Equity Securities

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.

(c) Investment made with cash collateral received from securities on loan.

(d) Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end.

(e) Security or a portion of the security is on loan at period end.

(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $102,900,304 or 6.0% of net assets.

(g) The coupon rate shown on floating or adjustable rate securities represents the rate at period end.

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

Repurchase Agreement / Counterparty

Value

$5,868,000 due 9/04/07 at 5.02%

Banc of America Securities LLC

$ 512,847

Citigroup Global Markets, Inc.

1,864,741

Lehman Brothers, Inc.

1,577,858

UBS Securities LLC

1,912,554

$ 5,868,000

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

$ 3,881,012

Fidelity Securities Lending Cash Central Fund

19,387

Total

$ 3,900,399

Income Tax Information

At August 31, 2007, the aggregate cost of investment securities for income tax purposes was $1,583,963,306. Net unrealized appreciation aggregated $149,669,196, of which $212,209,316 related to appreciated investment securities and $62,540,120 related to depreciated investment securities.

Investment Valuation

Investments are valued as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Security transactions are accounted for as of trade date. Wherever possible, the fund uses independent pricing services approved by the Board of Trustees to value its investments. Debt securities, including restricted securities, for which quotations are readily available, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. 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. 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. When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. The frequency of when fair value pricing is used is unpredictable. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. 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 value.

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 ® Advisor Strategic
Dividend & Income Fund
Class A
Class T
Class B
Class C
Institutional Class

August 31, 2007

Class A, Class T, Class B, Class C and
Institutional Class
are classes of Fidelity® Strategic
Dividend & Income Fund

1.805772.103

ASDI-QTLY-1007

Investments August 31, 2007 (Unaudited)

Showing Percentage of Net Assets

Corporate Bonds - 15.1%

Principal Amount

Value

Convertible Bonds - 14.1%

CONSUMER DISCRETIONARY - 0.6%

Diversified Consumer Services - 0.2%

Stewart Enterprises, Inc.:

3.125% 7/15/14 (f)

$ 2,000,000

$ 1,773,200

3.375% 7/15/16 (f)

2,000,000

1,758,800

3,532,000

Hotels, Restaurants & Leisure - 0.2%

Six Flags, Inc. 4.5% 5/15/15

3,300,000

2,883,375

Media - 0.2%

Charter Communications, Inc. 5.875% 11/16/09

2,413,000

3,234,144

Specialty Retail - 0.0%

Asbury Automotive Group, Inc. 3% 9/15/12 (f)

1,000,000

854,913

TOTAL CONSUMER DISCRETIONARY

10,504,432

CONSUMER STAPLES - 0.3%

Beverages - 0.1%

Molson Coors Brewing Co. 2.5% 7/30/13

2,000,000

2,095,000

Food & Staples Retailing - 0.2%

Nash-Finch Co. 1.6314% 3/15/35 (d)

7,070,000

3,240,181

TOTAL CONSUMER STAPLES

5,335,181

ENERGY - 2.8%

Energy Equipment & Services - 1.0%

Global Industries Ltd. 2.75% 8/1/27 (f)

1,500,000

1,398,750

Grey Wolf, Inc. 5.32% 4/1/24 (g)

2,300,000

2,873,850

Halliburton Co. 3.125% 7/15/23

4,260,000

7,902,300

Hornbeck Offshore Services, Inc. 1.625% 11/15/26 (d)(f)

1,000,000

1,005,500

SESI LLC 1.5% 12/15/26 (d)(f)

3,000,000

3,141,900

16,322,300

Oil, Gas & Consumable Fuels - 1.8%

Chesapeake Energy Corp.:

2.5% 5/15/37

5,060,000

4,767,532

2.75% 11/15/35 (f)

5,000,000

5,134,500

2.75% 11/15/35

10,200,000

10,474,380

Corporate Bonds - continued

Principal Amount

Value

Convertible Bonds - continued

ENERGY - continued

Oil, Gas & Consumable Fuels - continued

McMoRan Exploration Co. 6% 7/2/08

$ 3,000,000

$ 3,437,100

Peabody Energy Corp. 4.75% 12/15/66

8,000,000

7,900,000

31,713,512

TOTAL ENERGY

48,035,812

FINANCIALS - 0.8%

Real Estate Investment Trusts - 0.8%

Health Care REIT, Inc. 4.75% 12/1/26

3,380,000

3,357,016

Hospitality Properties Trust 3.8% 3/15/27

2,130,000

1,992,828

Ventas, Inc. 3.875% 11/15/11 (f)

8,250,000

8,469,450

13,819,294

HEALTH CARE - 1.9%

Biotechnology - 0.2%

Amgen, Inc. 0.375% 2/1/13

4,500,000

3,853,125

Health Care Equipment & Supplies - 0.7%

Beckman Coulter, Inc.:

2.5% 12/15/36 (f)

2,000,000

2,285,000

2.5% 12/15/36

350,000

399,875

Inverness Medical Innovations, Inc. 3% 5/15/16 (f)

4,000,000

4,700,000

Medtronic, Inc. 1.625% 4/15/13

2,000,000

2,139,200

SonoSite, Inc. 3.75% 7/15/14

3,000,000

2,985,900

12,509,975

Health Care Providers & Services - 0.4%

LifePoint Hospitals, Inc. 3.5% 5/15/14

6,250,000

5,345,014

Omnicare, Inc. 3.25% 12/15/35

1,000,000

783,750

6,128,764

Life Sciences Tools & Services - 0.4%

Fisher Scientific International, Inc.:

2.5% 10/1/23 (f)

565,000

1,316,789

2.5% 10/1/23

2,400,000

5,593,440

6,910,229

Corporate Bonds - continued

Principal Amount

Value

Convertible Bonds - continued

HEALTH CARE - continued

Pharmaceuticals - 0.2%

Alpharma, Inc. 2.125% 3/15/27

$ 3,000,000

$ 2,780,625

MGI Pharma, Inc. 1.6821% 3/2/24 (d)

2,000,000

1,403,200

4,183,825

TOTAL HEALTH CARE

33,585,918

INDUSTRIALS - 1.9%

Aerospace & Defense - 0.3%

AAR Corp. 1.75% 2/1/26 (f)

1,000,000

1,220,200

Alliant Techsystems, Inc. 3% 8/15/24

2,680,000

3,981,024

5,201,224

Airlines - 0.3%

UAL Corp.:

4.5% 6/30/21 (f)

2,000,000

3,008,400

4.5% 6/30/21

310,000

466,302

US Airways Group, Inc. 7% 9/30/20 (f)

490,000

794,413

4,269,115

Building Products - 0.0%

Trex Co., Inc. 6% 7/1/12

580,000

504,600

Commercial Services & Supplies - 0.1%

FTI Consulting, Inc. 3.75% 7/15/12 (f)

1,000,000

1,821,204

Construction & Engineering - 0.5%

Fluor Corp. 1.5% 2/15/24

2,000,000

4,550,492

Quanta Services, Inc. 3.75% 4/30/26 (f)

3,000,000

4,188,099

8,738,591

Electrical Equipment - 0.2%

GrafTech International Ltd. 1.625% 1/15/24

2,720,000

3,060,000

Machinery - 0.2%

Greenbrier Companies, Inc.:

2.375% 5/15/26 (f)

1,000,000

830,256

2.375% 5/15/26

2,000,000

1,660,513

Trinity Industries, Inc. 3.875% 6/1/36

1,000,000

1,020,971

3,511,740

Corporate Bonds - continued

Principal Amount

Value

Convertible Bonds - continued

INDUSTRIALS - continued

Marine - 0.3%

Horizon Lines, Inc. 4.25% 8/15/12 (f)

$ 5,000,000

$ 5,039,500

TOTAL INDUSTRIALS

32,145,974

INFORMATION TECHNOLOGY - 5.5%

Communications Equipment - 1.1%

Ciena Corp. 0.25% 5/1/13

1,560,000

1,658,102

Finisar Corp. 2.5% 10/15/10

6,920,000

8,814,350

JDS Uniphase Corp. 1% 5/15/26 (f)

5,000,000

4,066,000

L-3 Communications Corp. 3% 8/1/35

2,000,000

2,275,000

Symmetricom, Inc. 3.25% 6/15/25

2,000,000

1,581,600

18,395,052

Computers & Peripherals - 0.6%

EMC Corp.:

1.75% 12/1/13 (f)

1,800,000

2,445,750

1.75% 12/1/13

930,000

1,263,638

SanDisk Corp. 1% 5/15/13

7,000,000

6,539,400

10,248,788

Electronic Equipment & Instruments - 1.5%

Anixter International, Inc. 1% 2/15/13 (f)

2,000,000

2,318,400

Flextronics International Ltd. 1% 8/1/10

6,420,000

6,117,618

Itron, Inc. 2.5% 8/1/26

10,000,000

14,232,000

Merix Corp. 4% 5/15/13 (f)

1,000,000

802,500

Newport Corp. 2.5% 2/15/12 (f)

1,000,000

872,000

Solectron Corp. 0.5% 2/15/34

1,000,000

957,500

25,300,018

IT Services - 0.2%

BearingPoint, Inc. 3.1% 12/15/24 (f)

2,000,000

1,644,858

DST Systems, Inc. 4.125% 8/15/23

1,220,000

1,998,205

3,643,063

Semiconductors & Semiconductor Equipment - 1.8%

Advanced Micro Devices, Inc.:

6% 5/1/15 (f)

5,000,000

4,318,750

6% 5/1/15

4,250,000

3,670,938

Amkor Technology, Inc. 2.5% 5/15/11

1,250,000

1,276,250

Conexant Systems, Inc. 4% 3/1/26

3,000,000

2,574,600

Corporate Bonds - continued

Principal Amount

Value

Convertible Bonds - continued

INFORMATION TECHNOLOGY - continued

Semiconductors & Semiconductor Equipment - continued

Credence Systems Corp.:

3.5% 5/15/10 (f)

$ 2,000,000

$ 1,780,000

3.5% 5/15/10

1,000,000

890,000

Intel Corp. 2.95% 12/15/35

3,500,000

3,615,850

ON Semiconductor Corp.:

0% 4/15/24

6,500,000

8,347,950

1.875% 12/15/25 (f)

1,250,000

2,240,875

Photronics, Inc. 2.25% 4/15/08

3,000,000

2,920,500

31,635,713

Software - 0.3%

Borland Software Corp. 2.75% 2/15/12 (f)

2,000,000

1,842,500

Cadence Design Systems, Inc. 1.5% 12/15/13 (f)

2,000,000

2,273,800

Symantec Corp. 1% 6/15/13 (f)

1,000,000

1,119,900

5,236,200

TOTAL INFORMATION TECHNOLOGY

94,458,834

TELECOMMUNICATION SERVICES - 0.3%

Diversified Telecommunication Services - 0.3%

Level 3 Communications, Inc. 3.5% 6/15/12

2,000,000

2,299,400

Time Warner Telecom, Inc. 2.375% 4/1/26

2,000,000

2,644,600

4,944,000

TOTAL CONVERTIBLE BONDS

242,829,445

Nonconvertible Bonds - 1.0%

FINANCIALS - 0.7%

Capital Markets - 0.3%

Goldman Sachs Group, Inc. 5.793%

2,000,000

1,821,800

JPMorgan Chase Capital XXII 6.45% 2/2/37

3,000,000

2,663,700

Lehman Brothers Holdings, Inc.:

6.3713% (g)

1,000,000

897,691

5.857% (g)

1,000,000

918,399

6,301,590

Commercial Banks - 0.4%

Capital One Capital IV 6.745% 2/17/37 (g)

2,000,000

1,646,060

Corporate Bonds - continued

Principal Amount

Value

Nonconvertible Bonds - continued

FINANCIALS - continued

Commercial Banks - continued

HBOS plc 6.657% (f)(g)

$ 5,000,000

$ 4,437,500

Wells Fargo Capital X 5.95% 12/15/36

1,000,000

942,077

7,025,637

TOTAL FINANCIALS

13,327,227

UTILITIES - 0.3%

Multi-Utilities - 0.3%

Wisconsin Energy Corp. 6.25% 5/15/67 (g)

5,000,000

4,843,295

TOTAL NONCONVERTIBLE BONDS

18,170,522

TOTAL CORPORATE BONDS

(Cost $246,017,137)

260,999,967

Common Stocks - 65.2%

Shares

CONSUMER DISCRETIONARY - 4.6%

Automobiles - 0.1%

Winnebago Industries, Inc.

79,000

2,106,930

Diversified Consumer Services - 0.5%

Coinmach Service Corp. unit

156,800

3,002,720

Service Corp. International

355,100

4,339,322

Stewart Enterprises, Inc. Class A

225,800

1,618,986

8,961,028

Hotels, Restaurants & Leisure - 1.6%

Accor SA

31,000

2,661,092

Aristocrat Leisure Ltd. (e)

219,900

2,519,372

Centerplate, Inc. unit

268,800

3,948,672

Gaylord Entertainment Co. (a)

30,700

1,576,445

IHOP Corp.

73,400

4,614,658

McDonald's Corp.

128,849

6,345,813

Starwood Hotels & Resorts Worldwide, Inc.

41,500

2,536,480

WMS Industries, Inc. (a)

94,300

2,776,192

26,978,724

Household Durables - 0.7%

Bassett Furniture Industries, Inc.

80,957

934,244

Common Stocks - continued

Shares

Value

CONSUMER DISCRETIONARY - continued

Household Durables - continued

Beazer Homes USA, Inc.

19,500

$ 206,115

Black & Decker Corp.

26,400

2,290,200

La-Z-Boy, Inc.

117,277

1,130,550

The Stanley Works

41,510

2,355,277

Whirlpool Corp.

53,000

5,109,730

12,026,116

Internet & Catalog Retail - 0.1%

B2W Companhia Global Do Varejo

15,200

581,040

FTD Group, Inc.

30,500

541,985

1,123,025

Leisure Equipment & Products - 0.4%

Brunswick Corp.

68,000

1,710,200

Eastman Kodak Co.

105,700

2,819,019

MarineMax, Inc. (a)

24,400

447,496

Polaris Industries, Inc.

32,900

1,570,975

6,547,690

Media - 0.5%

Charter Communications, Inc. Class A (a)

977,700

2,718,006

News Corp.:

Class A

86,700

1,753,941

Class B

8,400

182,616

R.H. Donnelley Corp. (a)

47,100

2,770,893

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

41,865

1,651,993

9,077,449

Multiline Retail - 0.2%

Retail Ventures, Inc. (a)

39,791

460,382

Sears Holdings Corp. (a)

15,400

2,210,824

Tuesday Morning Corp.

90,385

953,562

3,624,768

Specialty Retail - 0.2%

AutoZone, Inc. (a)

6,500

788,385

Collective Brands, Inc. (a)

80,200

1,895,126

Foot Locker, Inc.

79,800

1,333,458

4,016,969

Textiles, Apparel & Luxury Goods - 0.3%

G-III Apparel Group Ltd. (a)

83,500

1,432,025

Liz Claiborne, Inc.

69,000

2,357,730

Common Stocks - continued

Shares

Value

CONSUMER DISCRETIONARY - continued

Textiles, Apparel & Luxury Goods - continued

Lululemon Athletica, Inc.

2,100

$ 71,547

VF Corp.

22,000

1,756,700

5,618,002

TOTAL CONSUMER DISCRETIONARY

80,080,701

CONSUMER STAPLES - 2.8%

Beverages - 0.1%

Remy Cointreau SA

23,200

1,656,814

Food & Staples Retailing - 0.2%

Rite Aid Corp. (a)

541,700

2,746,419

Food Products - 1.2%

B&G Foods, Inc. unit

156,900

3,258,813

BioMar Holding AS

46,600

2,049,785

Bunge Ltd.

28,900

2,642,616

Cermaq ASA

135,500

2,324,424

Chiquita Brands International, Inc. (a)(e)

234,337

3,655,657

Marine Harvest ASA (a)

2,100,000

2,464,061

Ralcorp Holdings, Inc. (a)

21,200

1,309,948

Tyson Foods, Inc. Class A

145,400

3,133,370

20,838,674

Household Products - 0.4%

Procter & Gamble Co.

115,800

7,562,898

Personal Products - 0.4%

Avon Products, Inc.

136,600

4,692,210

Prestige Brands Holdings, Inc. (a)

133,000

1,459,010

6,151,220

Tobacco - 0.5%

Altria Group, Inc.

92,800

6,441,248

Japan Tobacco, Inc.

460

2,554,121

8,995,369

TOTAL CONSUMER STAPLES

47,951,394

ENERGY - 7.9%

Energy Equipment & Services - 3.0%

Diamond Offshore Drilling, Inc.

84,300

8,864,988

GlobalSantaFe Corp.

122,800

8,668,452

National Oilwell Varco, Inc. (a)

147,689

18,904,192

Common Stocks - continued

Shares

Value

ENERGY - continued

Energy Equipment & Services - continued

Oceaneering International, Inc. (a)

99,280

$ 6,667,645

Transocean, Inc. (a)

81,200

8,533,308

51,638,585

Oil, Gas & Consumable Fuels - 4.9%

Cabot Oil & Gas Corp.

127,400

4,247,516

Canadian Natural Resources Ltd.

95,600

6,535,073

CONSOL Energy, Inc.

101,100

4,031,868

Exxon Mobil Corp.

57,400

4,920,902

Noble Energy, Inc.

62,000

3,724,340

Peabody Energy Corp.

88,600

3,766,386

Plains Exploration & Production Co. (a)

180,000

6,755,400

Range Resources Corp.

113,022

4,103,829

Teekay Corp.

142,050

8,233,218

Valero Energy Corp.

498,761

34,170,110

Williams Companies, Inc.

101,900

3,158,900

83,647,542

TOTAL ENERGY

135,286,127

FINANCIALS - 24.9%

Capital Markets - 1.5%

Ares Capital Corp.

153,900

2,527,038

Bank New York Mellon Corp.

64,439

2,605,269

Bear Stearns Companies, Inc.

60,400

6,563,064

Franklin Resources, Inc.

16,600

2,187,382

Janus Capital Group, Inc.

92,500

2,459,575

Merrill Lynch & Co., Inc. (depositary shares) Series 1, unit

277,700

6,595,375

T. Rowe Price Group, Inc.

41,300

2,119,516

25,057,219

Commercial Banks - 1.6%

Cathay General Bancorp

59,846

1,945,593

Commerce Bancorp, Inc.

72,400

2,659,252

East West Bancorp, Inc.

100,131

3,584,690

PNC Financial Services Group, Inc.

45,500

3,201,835

UCBH Holdings, Inc.

125,600

2,087,472

Wachovia Corp.

85,209

4,173,537

Wells Fargo & Co.

262,400

9,588,096

27,240,475

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Consumer Finance - 0.1%

Advance America Cash Advance Centers, Inc.

98,400

$ 1,234,920

Discover Financial Services (a)

23,550

544,947

1,779,867

Diversified Financial Services - 3.4%

Bank of America Corp.

355,314

18,007,314

Citigroup, Inc.

448,100

21,006,928

JPMorgan Chase & Co.

451,704

20,109,862

59,124,104

Insurance - 4.0%

AFLAC, Inc.

68,100

3,630,411

American Equity Investment Life Holding Co.

6,066

61,934

American International Group, Inc.

175,600

11,589,600

Aspen Insurance Holdings Ltd.

367,618

9,223,536

Axis Capital Holdings Ltd.

107,495

3,880,570

Endurance Specialty Holdings Ltd.

245,195

9,775,925

Everest Re Group Ltd.

39,300

4,003,884

Hartford Financial Services Group, Inc.

35,100

3,120,741

MetLife, Inc.

46,000

2,946,300

National Financial Partners Corp.

57,400

2,801,120

Platinum Underwriters Holdings Ltd.

280,566

9,730,029

Principal Financial Group, Inc.

51,000

2,829,990

Prudential Financial, Inc.

45,100

4,049,078

Universal American Financial Corp. (a)

101,900

2,115,444

69,758,562

Real Estate Investment Trusts - 12.1%

Alexandria Real Estate Equities, Inc.

78,400

7,317,072

American Financial Realty Trust (SBI)

204,500

1,693,260

Annaly Capital Management, Inc.

184,700

2,602,423

Archstone-Smith Trust

79,600

4,680,480

AvalonBay Communities, Inc.

74,860

8,562,487

Boston Properties, Inc.

61,214

6,125,685

BRE Properties, Inc. Class A

106,500

5,915,010

CBL & Associates Properties, Inc.

29,155

960,949

Corporate Office Properties Trust (SBI)

148,700

6,404,509

DCT Industrial Trust, Inc.

305,051

3,117,621

Developers Diversified Realty Corp.

102,100

5,460,308

Duke Realty LP

121,670

4,111,229

Equity Lifestyle Properties, Inc.

34,160

1,663,592

Equity One, Inc.

16,400

429,024

Equity Residential (SBI)

165,680

6,666,963

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Real Estate Investment Trusts - continued

General Growth Properties, Inc.

267,425

$ 13,293,697

GMH Communities Trust

126,100

991,146

Health Care Property Investors, Inc.

153,500

4,669,470

Healthcare Realty Trust, Inc.

105,700

2,639,329

Hersha Hospitality Trust

31,600

345,388

Highwoods Properties, Inc. (SBI)

127,500

4,550,475

Home Properties, Inc.

183,400

9,320,388

Host Hotels & Resorts, Inc.

321,245

7,160,551

Inland Real Estate Corp.

280,800

4,346,784

Kilroy Realty Corp.

91,400

5,587,282

Kimco Realty Corp.

110,238

4,720,391

LaSalle Hotel Properties (SBI)

91,500

3,810,060

Pennsylvania (REIT) (SBI)

48,700

1,842,321

Plum Creek Timber Co., Inc.

45,800

1,920,394

Post Properties, Inc.

35,100

1,400,841

Potlatch Corp.

61,630

2,775,815

ProLogis Trust

204,665

12,312,646

Public Storage

131,436

9,960,220

Rayonier, Inc.

64,220

2,744,763

Simon Property Group, Inc.

174,410

16,554,997

SL Green Realty Corp.

29,100

3,244,941

Strategic Hotel & Resorts, Inc.

266,200

5,475,734

Tanger Factory Outlet Centers, Inc.

94,400

3,593,808

Taubman Centers, Inc.

20,800

1,072,864

Thornburg Mortgage, Inc. (SBI)

218,200

2,570,396

UDR, Inc.

87,340

2,193,107

Unibail-Rodamco

2,600

626,068

Ventas, Inc.

102,550

3,905,104

Vornado Realty Trust

85,850

9,150,752

208,490,344

Real Estate Management & Development - 0.4%

Brookfield Properties Corp.

124,000

2,861,921

CB Richard Ellis Group, Inc. Class A (a)

43,900

1,295,928

Grubb & Ellis Co. (a)

70,800

641,448

Mitsubishi Estate Co. Ltd.

96,000

2,569,837

7,369,134

Thrifts & Mortgage Finance - 1.8%

Countrywide Financial Corp.

203,600

4,041,460

Downey Financial Corp.

23,800

1,346,842

Fannie Mae

129,500

8,496,495

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Thrifts & Mortgage Finance - continued

FirstFed Financial Corp., Delaware (a)

25,600

$ 1,286,400

Freddie Mac

136,300

8,397,443

Hudson City Bancorp, Inc.

219,600

3,122,712

New York Community Bancorp, Inc.

213,100

3,769,739

30,461,091

TOTAL FINANCIALS

429,280,796

HEALTH CARE - 2.6%

Biotechnology - 0.1%

Amgen, Inc. (a)

24,700

1,237,717

Health Care Equipment & Supplies - 0.9%

American Medical Systems Holdings, Inc. (a)

75,300

1,385,520

Becton, Dickinson & Co.

72,700

5,593,538

C.R. Bard, Inc.

65,400

5,453,706

Covidien Ltd. (a)

36,625

1,458,774

Varian Medical Systems, Inc. (a)

56,374

2,276,946

16,168,484

Health Care Providers & Services - 0.5%

Amedisys, Inc. (a)

70,907

2,678,866

Brookdale Senior Living, Inc.

52,100

1,907,902

Capital Senior Living Corp. (a)

46,700

378,270

DaVita, Inc. (a)

51,700

2,973,784

Emeritus Corp. (a)

16,200

439,830

Henry Schein, Inc. (a)

800

46,552

Sun Healthcare Group, Inc. (a)

54,700

813,389

9,238,593

Health Care Technology - 0.2%

Cerner Corp. (a)

47,400

2,703,696

Pharmaceuticals - 0.9%

Merck & Co., Inc.

230,800

11,579,236

MGI Pharma, Inc. (a)

109,500

2,580,915

Wyeth

42,200

1,953,860

16,114,011

TOTAL HEALTH CARE

45,462,501

Common Stocks - continued

Shares

Value

INDUSTRIALS - 6.2%

Aerospace & Defense - 1.3%

General Dynamics Corp.

55,800

$ 4,383,648

Honeywell International, Inc.

107,800

6,052,970

Lockheed Martin Corp.

26,700

2,647,038

Precision Castparts Corp.

23,500

3,062,285

United Technologies Corp.

87,300

6,515,199

22,661,140

Air Freight & Logistics - 0.2%

United Parcel Service, Inc. Class B

37,000

2,806,820

Airlines - 0.2%

Delta Air Lines, Inc. (a)

42,500

717,400

UAL Corp. (a)

19,200

911,424

US Airways Group, Inc. (a)

56,400

1,745,580

3,374,404

Commercial Services & Supplies - 0.5%

Corrections Corp. of America (a)

33,600

862,176

Dun & Bradstreet Corp.

17,400

1,697,370

Equifax, Inc.

21,000

808,920

The Brink's Co.

13,100

751,416

The Geo Group, Inc. (a)

34,700

1,033,019

Waste Management, Inc.

87,500

3,296,125

8,449,026

Construction & Engineering - 1.1%

Fluor Corp.

91,148

11,589,468

Shaw Group, Inc. (a)

154,700

7,742,735

19,332,203

Electrical Equipment - 0.1%

Cooper Industries Ltd. Class A

30,500

1,560,685

Industrial Conglomerates - 0.8%

General Electric Co.

259,500

10,086,765

Siemens AG sponsored ADR

28,700

3,596,110

13,682,875

Machinery - 1.4%

Eaton Corp.

18,100

1,705,382

Flowserve Corp.

57,606

4,113,644

Illinois Tool Works, Inc.

47,000

2,733,990

Oshkosh Truck Co.

40,000

2,315,600

Common Stocks - continued

Shares

Value

INDUSTRIALS - continued

Machinery - continued

Pentair, Inc.

82,449

$ 3,061,331

SPX Corp.

115,400

10,391,770

24,321,717

Road & Rail - 0.5%

Kansas City Southern (a)

1,803

54,793

Knight Transportation, Inc.

103,000

1,894,170

Landstar System, Inc.

39,600

1,703,196

P.A.M. Transportation Services, Inc. (a)

48,863

914,227

Union Pacific Corp.

34,500

3,849,165

8,415,551

Trading Companies & Distributors - 0.1%

Rush Enterprises, Inc. Class A (a)

99,669

2,527,606

TOTAL INDUSTRIALS

107,132,027

INFORMATION TECHNOLOGY - 10.3%

Communications Equipment - 1.0%

Alcatel-Lucent SA sponsored ADR

124,200

1,359,990

Avocent Corp. (a)

101,900

3,008,088

Comverse Technology, Inc. (a)

87,300

1,462,275

Juniper Networks, Inc. (a)

98,400

3,239,328

Motorola, Inc.

167,200

2,834,040

Nokia Corp. sponsored ADR

152,300

5,007,624

16,911,345

Computers & Peripherals - 2.0%

Dell, Inc. (a)

105,000

2,966,250

Diebold, Inc.

83,564

3,665,953

Hewlett-Packard Co.

110,800

5,467,980

Intermec, Inc. (a)

144,900

3,557,295

International Business Machines Corp.

75,000

8,751,750

NCR Corp. (a)

77,100

3,837,267

SanDisk Corp. (a)

80,800

4,529,648

Sun Microsystems, Inc. (a)

141,900

760,584

33,536,727

Electronic Equipment & Instruments - 1.5%

Agilent Technologies, Inc. (a)

71,000

2,584,400

Amphenol Corp. Class A

246,400

8,897,504

Arrow Electronics, Inc. (a)

98,700

4,141,452

Avnet, Inc. (a)

95,700

3,761,967

Common Stocks - continued

Shares

Value

INFORMATION TECHNOLOGY - continued

Electronic Equipment & Instruments - continued

Flextronics International Ltd. (a)

264,400

$ 3,011,516

Ingram Micro, Inc. Class A (a)

87,000

1,708,680

Tyco Electronics Ltd. (a)

39,025

1,360,802

25,466,321

Internet Software & Services - 0.4%

Google, Inc. Class A (sub. vtg.) (a)

7,500

3,864,375

VeriSign, Inc. (a)

117,900

3,796,380

7,660,755

IT Services - 0.2%

Mastercard, Inc. Class A

28,600

3,917,914

Semiconductors & Semiconductor Equipment - 4.0%

Advanced Micro Devices, Inc. (a)

173,600

2,256,800

Advantest Corp. ADR

41,200

1,516,160

Analog Devices, Inc.

47,100

1,737,048

Applied Materials, Inc.

181,000

3,866,160

ASML Holding NV (NY Shares) (a)

134,100

3,978,747

Axcelis Technologies, Inc. (a)

219,100

1,031,961

Broadcom Corp. Class A (a)

72,800

2,511,600

Cirrus Logic, Inc. (a)

166,700

1,135,227

Cypress Semiconductor Corp. (a)

78,300

1,960,632

Diodes, Inc. (a)

104,283

3,160,818

Fairchild Semiconductor International, Inc. (a)

125,500

2,354,380

FormFactor, Inc. (a)

70,100

3,179,736

Hittite Microwave Corp. (a)

102,359

4,336,951

Integrated Device Technology, Inc. (a)

247,129

3,865,098

Intel Corp.

145,500

3,746,625

Intersil Corp. Class A

74,500

2,482,340

Lam Research Corp. (a)

47,000

2,520,610

Linear Technology Corp.

50,600

1,719,894

Marvell Technology Group Ltd. (a)

98,700

1,635,459

Maxim Integrated Products, Inc.

83,400

2,502,834

Microchip Technology, Inc.

45,700

1,760,364

Micron Technology, Inc. (a)

76,800

879,360

National Semiconductor Corp.

98,500

2,592,520

Nec Electronics Corp. (a)

68,600

1,889,677

ON Semiconductor Corp. (a)

531,000

6,223,320

RF Micro Devices, Inc. (a)(e)

146,300

870,485

Saifun Semiconductors Ltd. (a)

30,400

305,824

Volterra Semiconductor Corp. (a)

243,629

2,645,811

68,666,441

Common Stocks - continued

Shares

Value

INFORMATION TECHNOLOGY - continued

Software - 1.2%

Business Objects SA sponsored ADR (a)

89,920

$ 3,948,387

Cadence Design Systems, Inc. (a)

109,900

2,387,028

Microsoft Corp.

124,400

3,574,012

Nintendo Co. Ltd.

7,600

3,535,520

Symantec Corp. (a)

123,000

2,313,630

Ubisoft Entertainment SA (a)

85,704

5,320,701

21,079,278

TOTAL INFORMATION TECHNOLOGY

177,238,781

MATERIALS - 1.4%

Chemicals - 0.6%

Agrium, Inc.

61,900

2,828,157

Arkema (a)

25,700

1,595,865

Celanese Corp. Class A

61,400

2,205,488

Monsanto Co.

55,100

3,842,674

10,472,184

Metals & Mining - 0.7%

Alcoa, Inc.

91,400

3,338,842

Titanium Metals Corp. (a)

261,200

8,188,620

11,527,462

Paper & Forest Products - 0.1%

Neenah Paper, Inc.

46,175

1,601,811

TOTAL MATERIALS

23,601,457

TELECOMMUNICATION SERVICES - 2.7%

Diversified Telecommunication Services - 2.4%

AT&T, Inc.

588,915

23,480,041

CenturyTel, Inc. (e)

48,689

2,336,098

Level 3 Communications, Inc. (a)

287,274

1,502,443

Qwest Communications International, Inc. (a)

301,900

2,702,005

Verizon Communications, Inc.

292,600

12,254,088

42,274,675

Common Stocks - continued

Shares

Value

TELECOMMUNICATION SERVICES - continued

Wireless Telecommunication Services - 0.3%

NII Holdings, Inc. (a)

11,200

$ 886,816

Sprint Nextel Corp.

193,900

3,668,588

4,555,404

TOTAL TELECOMMUNICATION SERVICES

46,830,079

UTILITIES - 1.8%

Electric Utilities - 0.7%

Entergy Corp.

38,300

3,968,646

PPL Corp.

181,111

8,740,417

12,709,063

Independent Power Producers & Energy Traders - 0.7%

AES Corp. (a)

342,500

6,202,675

Constellation Energy Group, Inc.

77,600

6,436,144

Mirant Corp. (a)

885

34,488

12,673,307

Multi-Utilities - 0.4%

CMS Energy Corp.

259,300

4,231,776

Public Service Enterprise Group, Inc.

23,500

1,997,265

6,229,041

TOTAL UTILITIES

31,611,411

TOTAL COMMON STOCKS

(Cost $988,610,734)

1,124,475,274

Preferred Stocks - 15.8%

Convertible Preferred Stocks - 4.2%

CONSUMER DISCRETIONARY - 0.2%

Automobiles - 0.1%

General Motors Corp. Series C, 6.25%

98,500

2,093,125

Hotels, Restaurants & Leisure - 0.0%

Six Flags, Inc. 7.25% PIERS

2,100

40,425

Media - 0.1%

Emmis Communications Corp. Series A, 6.25%

10,100

426,321

TOTAL CONSUMER DISCRETIONARY

2,559,871

Preferred Stocks - continued

Shares

Value

Convertible Preferred Stocks - continued

ENERGY - 1.0%

Oil, Gas & Consumable Fuels - 1.0%

Chesapeake Energy Corp.:

4.50%

20,500

$ 1,947,500

6.25%

8,000

2,105,520

El Paso Corp. 4.99%

10,000

13,751,947

17,804,967

FINANCIALS - 0.2%

Diversified Financial Services - 0.1%

Carriage Services Capital Trust 7.00% TIDES

45,000

1,800,000

Real Estate Investment Trusts - 0.1%

HRPT Properties Trust 6.50%

40,000

892,800

TOTAL FINANCIALS

2,692,800

INDUSTRIALS - 0.1%

Road & Rail - 0.1%

Kansas City Southern:

4.25%

1,370

1,304,853

5.125%

1,000

1,199,690

2,504,543

MATERIALS - 1.1%

Chemicals - 0.7%

Celanese Corp. 4.25%

252,600

11,788,842

Containers & Packaging - 0.1%

Owens-Illinois, Inc. 4.75%

63,510

2,813,493

Metals & Mining - 0.3%

Freeport-McMoRan Copper & Gold, Inc. 5.50%

2,550

4,889,753

TOTAL MATERIALS

19,492,088

UTILITIES - 1.6%

Electric Utilities - 0.5%

AES Trust VII 6.00%

180,700

8,854,300

Independent Power Producers & Energy Traders - 0.5%

NRG Energy, Inc.:

4.00% (f)

3,900

7,662,759

Series A, 5.75%

1,000

337,300

8,000,059

Preferred Stocks - continued

Shares

Value

Convertible Preferred Stocks - continued

UTILITIES - continued

Multi-Utilities - 0.6%

CMS Energy Corp. 4.50%

116,000

$ 9,926,120

TOTAL UTILITIES

26,780,479

TOTAL CONVERTIBLE PREFERRED STOCKS

71,834,748

Nonconvertible Preferred Stocks - 11.6%

CONSUMER DISCRETIONARY - 0.0%

Media - 0.0%

CBS Corp. 6.75%

40,000

953,600

CONSUMER STAPLES - 0.1%

Food Products - 0.1%

H.J. Heinz Finance Co. 6.226%

10

1,005,000

ENERGY - 0.2%

Oil, Gas & Consumable Fuels - 0.2%

Apache Corp. (depositary shares) Series B, 5.68%

29,375

2,673,125

Devon Energy Corp. 6.49%

13,750

1,375,688

4,048,813

FINANCIALS - 8.4%

Capital Markets - 1.5%

Bear Stearns Companies, Inc.:

Series E, 6.155%

15,000

702,600

Series G, 5.49%

15,000

596,250

Deutsche Bank Contingent Capital Trust II 6.55%

80,000

1,920,800

Goldman Sachs Group, Inc.:

Series A, 3.9106%

120,000

2,836,800

Series B, 6.20%

100,000

2,450,000

Series C, 4.9931%

40,000

963,600

Series D

160,000

3,806,400

Lehman Brothers Holdings, Inc.:

(depositary shares) Series F, 6.50%

169,015

4,159,459

Series D, 5.67%

34,900

1,570,500

Merrill Lynch & Co., Inc.:

Series 5, 5.86%

80,000

1,800,800

Preferred Stocks - continued

Shares

Value

Nonconvertible Preferred Stocks - continued

FINANCIALS - continued

Capital Markets - continued

Merrill Lynch & Co., Inc.: - continued

Series H, 3.97%

120,000

$ 2,787,600

Morgan Stanley Capital Trust IV 6.60%

80,000

1,929,600

25,524,409

Commercial Banks - 1.4%

ABN AMRO Capital Funding Trust V 5.90%

20,000

449,000

ABN Amro Capital Funding Trust VII 6.08%

40,400

914,656

Barclays Bank PLC Series 2, 6.625%

40,000

986,800

BNY Capital V 5.95%

115,000

2,582,900

First Tennessee Bank NA, Memphis 3.90% (f)

5,000

4,740,000

Keycorp Capital IX 6.75%

40,000

942,800

Royal Bank of Scotland Group PLC Series R, 6.125%

40,000

930,000

Santander Finance Preferred SA Unipersonal (f)

40,000

900,000

Santander Finance Preferred SA Unipersonal:

6.41%

69,400

1,655,190

6.50% (f)

40,000

930,000

6.80% (f)

160,000

3,880,000

U.S. Bancorp, Delaware Series B, 0.00%

40,000

1,000,000

USB Capital XII 6.30%

80,000

1,848,000

Wachovia Capital Trust IX 6.375%

120,000

2,796,000

24,555,346

Consumer Finance - 0.2%

Ford Motor Credit Co. LLC 7.375%

40,000

780,400

HSBC USA, Inc.:

Series G, 4.9175%

80,000

2,000,800

Series H, 6.50%

40,000

1,052,400

SLM Corp. 4.07%

1,200

89,460

3,923,060

Diversified Financial Services - 1.1%

Bank of America Corp.:

Series D

20,000

507,000

Series E

40,000

952,000

CIT Group, Inc. Series B, 5.189%

15,000

1,290,000

Citigroup Capital XVI Series C, 6.45%

120,000

2,881,200

Citigroup Capital XVII 6.35%

80,000

1,895,200

Deutsche Bank Capital Funding Trust VIII 6.375%

140,000

3,350,200

General Electric Capital Corp. 6.05%

80,000

1,950,400

Preferred Stocks - continued

Shares

Value

Nonconvertible Preferred Stocks - continued

FINANCIALS - continued

Diversified Financial Services - continued

ING Groep NV 6.375%

80,000

$ 1,912,800

Merrill Lynch Capital Trust II 6.45%

200,000

4,740,000

19,478,800

Insurance - 0.2%

American International Group, Inc. 6.45%

80,000

1,948,800

MetLife, Inc. Series A, 4.39%

40,000

1,000,000

2,948,800

Real Estate Investment Trusts - 0.9%

Apartment Investment & Management Co. Series V, 8.00%

79,000

1,962,360

Duke Realty LP (depositary shares) Series K, 6.50%

95,800

2,155,500

Hospitality Properties Trust:

Series B, 8.875%

200,000

5,044,000

Series C, 7.00%

100,000

2,250,000

Host Hotels & Resorts, Inc. Series E, 8.875%

20,000

506,200

Public Storage Series M, 6.625%

80,000

1,830,400

Vornado Realty Trust Series E, 7.00%

40,000

941,600

14,690,060

Thrifts & Mortgage Finance - 3.1%

Countrywide Capital V 7.00%

80,000

1,500,000

Fannie Mae:

5.10%

27,562

1,163,116

7.00%

42,200

2,250,526

Series H, 5.81%

71,200

3,417,600

Series I, 5.375%

5,000

227,500

Series L, 5.125%

140,900

6,065,745

Series N, 5.50%

92,650

4,238,738

Freddie Mac:

5.30%

40,000

1,720,000

5.57%

546,000

12,732,720

5.90%

40,000

970,000

6.02%

20,000

498,800

Series F, 5.00%

58,500

2,515,500

Series H, 5.10%

10,300

453,200

Series K, 5.79%

35,200

1,672,000

Series O, 5.81%

19,500

937,950

Series R, 5.70%

117,000

5,522,400

Series S, adj. rate

10,000

515,000

Series T 6.42%

10,000

542,500

Series W, 5.66%

141,600

3,343,176

Preferred Stocks - continued

Shares

Value

Nonconvertible Preferred Stocks - continued

FINANCIALS - continued

Thrifts & Mortgage Finance - continued

Indymac Bank F S B Pasadena Cali 8.50% (f)

80,000

$ 1,040,000

Sovereign Bancorp, Inc. Series C, 7.30%

80,000

2,108,000

53,434,471

TOTAL FINANCIALS

144,554,946

MATERIALS - 0.1%

Chemicals - 0.1%

E.I. du Pont de Nemours & Co. Series B, 4.50%

9,900

777,150

Metals & Mining - 0.0%

Alcoa, Inc. 3.75%

6,400

466,944

TOTAL MATERIALS

1,244,094

TELECOMMUNICATION SERVICES - 0.4%

Diversified Telecommunication Services - 0.4%

AT&T, Inc. 6.375%

281,800

6,782,926

UTILITIES - 2.4%

Electric Utilities - 2.2%

Alabama Power Co.:

4.60%

2,000

156,000

5.20%

120,000

2,644,800

5.30%

88,600

2,084,758

5.625%

80,000

1,936,000

Baltimore Gas & Electric Co. Series 1993, 6.70%

10,000

1,022,000

Duquesne Light Co. 6.50%

106,050

5,010,863

Entergy Louisiana LLC 6.95%

7,500

727,500

FPL Group Capital Trust I 5.875%

20,000

463,000

Mid-American Energy Co. 4.40%

5,000

400,000

Pacific Gas & Electric Co.:

Series A, 5.00%

16,900

376,025

Series B, 5.50%

61,900

1,429,890

Series D 5.00%

69,200

1,515,480

PPL Electric Utilities Corp. 6.25%

230,000

5,520,000

Preferred Stocks - continued

Shares

Value

Nonconvertible Preferred Stocks - continued

UTILITIES - continued

Electric Utilities - continued

Southern California Edison Co.:

4.78%

46,500

$ 1,009,050

5.349%

40,000

4,005,000

6.125%

35,000

3,395,000

Series B, 4.08%

27,271

504,514

Series C:

4.24%

94,600

1,783,210

6.00%

20,000

1,880,000

Series D, 4.32%

70,000

1,372,000

37,235,090

Independent Power Producers & Energy Traders - 0.0%

Heco Capital Trust III 6.50%

12,000

294,000

Multi-Utilities - 0.2%

Consolidated Edison Co. of New York, Inc. Series A, 5.00%

28,705

2,583,450

San Diego Gas & Electric Co. 1.70%

67,548

1,766,806

4,350,256

TOTAL UTILITIES

41,879,346

TOTAL NONCONVERTIBLE PREFERRED STOCKS

200,468,725

TOTAL PREFERRED STOCKS

(Cost $269,468,120)

272,303,473

Preferred Securities - 0.5%

Principal Amount

FINANCIALS - 0.5%

Commercial Banks - 0.3%

PNC Preferred Funding Trust I 6.517% (f)(g)

$ 3,000,000

2,971,540

SunTrust Preferred Capital I 5.853% (g)

1,000,000

991,074

3,962,614

Diversified Financial Services - 0.1%

Wachovia Capital Trust III 5.8% (g)

2,000,000

2,048,581

Preferred Securities - continued

Principal Amount

Value

FINANCIALS - continued

Thrifts & Mortgage Finance - 0.1%

Washington Mutual Preferred Funding Trust I 6.534% (f)(g)

$ 2,000,000

$ 1,872,298

TOTAL PREFERRED SECURITIES

(Cost $8,000,000)

7,883,493

Money Market Funds - 3.6%

Shares

Fidelity Cash Central Fund, 5.48% (b)

57,462,035

57,462,035

Fidelity Securities Lending Cash Central Fund, 5.49% (b)(c)

4,640,260

4,640,260

TOTAL MONEY MARKET FUNDS

(Cost $62,102,295)

62,102,295

Cash Equivalents - 0.3%

Maturity Amount

Investments in repurchase agreements in a joint trading account at 5.02%, dated 8/31/07 due 9/4/07 (Collateralized by U.S. Treasury Obligations) #
(Cost $5,868,000)

$ 5,871,271

5,868,000

TOTAL INVESTMENT PORTFOLIO - 100.5%

(Cost $1,580,066,286)

1,733,632,502

NET OTHER ASSETS - (0.5)%

(9,108,312)

NET ASSETS - 100%

$ 1,724,524,190

Security Type Abbreviations

PIERS - Preferred Income Equity Redeemable Securities

TIDES - Term Income Deferred Equity Securities

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.

(c) Investment made with cash collateral received from securities on loan.

(d) Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end.

(e) Security or a portion of the security is on loan at period end.

(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $102,900,304 or 6.0% of net assets.

(g) The coupon rate shown on floating or adjustable rate securities represents the rate at period end.

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

Repurchase Agreement / Counterparty

Value

$5,868,000 due 9/04/07 at 5.02%

Banc of America Securities LLC

$ 512,847

Citigroup Global Markets, Inc.

1,864,741

Lehman Brothers, Inc.

1,577,858

UBS Securities LLC

1,912,554

$ 5,868,000

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

$ 3,881,012

Fidelity Securities Lending Cash Central Fund

19,387

Total

$ 3,900,399

Income Tax Information

At August 31, 2007, the aggregate cost of investment securities for income tax purposes was $1,583,963,306. Net unrealized appreciation aggregated $149,669,196, of which $212,209,316 related to appreciated investment securities and $62,540,120 related to depreciated investment securities.

Investment Valuation

Investments are valued as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Security transactions are accounted for as of trade date. Wherever possible, the fund uses independent pricing services approved by the Board of Trustees to value its investments. Debt securities, including restricted securities, for which quotations are readily available, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. 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. 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. When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. The frequency of when fair value pricing is used is unpredictable. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. 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 value.

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/Kimberley Monasterio

Kimberley Monasterio

President and Treasurer

Date:

October 30, 2007

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/ Kimberley Monasterio

Kimberley Monasterio

President and Treasurer

Date:

October 30, 2007

By:

/s/Joseph B. Hollis

Joseph B. Hollis

Chief Financial Officer

Date:

October 30, 2007