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:

November 30

 

 

Date of reporting period:

February 28, 2009

Item 1. Schedule of Investments

Quarterly Holdings Report

for

Fidelity ® Strategic
Dividend & Income Fund

February 28, 2009 

1.814104.104

SDI-QTLY-0409

Investments February 28, 2009 (Unaudited)

Showing Percentage of Net Assets

Corporate Bonds - 17.7%

 

Principal Amount

Value

Convertible Bonds - 15.5%

CONSUMER DISCRETIONARY - 0.8%

Hotels, Restaurants & Leisure - 0.1%

Carnival Corp. 2% 4/15/21

$ 290,000

$ 259,028

Scientific Games Corp. 0.75% 12/1/24 (e)

240,000

208,344

 

467,372

Media - 0.6%

Interpublic Group of Companies, Inc. 4.75% 3/15/23

580,000

358,092

Lamar Advertising Co. 2.875% 12/31/10

1,940,000

1,455,000

Regal Entertainment Group 6.25% 3/15/11 (g)

1,130,000

1,005,700

 

2,818,792

Specialty Retail - 0.1%

United Auto Group, Inc. 3.5% 4/1/26

260,000

167,952

Textiles, Apparel & Luxury Goods - 0.0%

Iconix Brand Group, Inc. 1.875% 6/30/12

200,000

129,500

TOTAL CONSUMER DISCRETIONARY

3,583,616

CONSUMER STAPLES - 1.6%

Beverages - 0.2%

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

970,000

991,049

Food & Staples Retailing - 0.7%

Nash-Finch Co. 1.6314% 3/15/35 (e)

1,320,000

511,183

The Great Atlantic & Pacific Tea Co. 5.125% 6/15/11

5,470,000

2,844,400

 

3,355,583

Food Products - 0.5%

Archer Daniels Midland Co. 0.875% 2/15/14

900,000

828,000

Smithfield Foods, Inc. 4% 6/30/13

980,000

605,738

Tyson Foods, Inc. 3.25% 10/15/13

1,070,000

889,309

 

2,323,047

Personal Products - 0.2%

Chattem, Inc.:

1.625% 5/1/14

430,000

372,638

2% 11/15/13

210,000

226,086

 

598,724

TOTAL CONSUMER STAPLES

7,268,403

Corporate Bonds - continued

 

Principal Amount

Value

Convertible Bonds - continued

ENERGY - 1.3%

Energy Equipment & Services - 0.1%

SESI LLC 1.5% 12/15/26 (e)(g)

$ 690,000

$ 497,214

Oil, Gas & Consumable Fuels - 1.2%

Alpha Natural Resources, Inc. 2.375% 4/15/15

1,960,000

1,341,424

Chesapeake Energy Corp. 2.5% 5/15/37

3,980,000

2,416,656

Peabody Energy Corp. 4.75% 12/15/66

2,930,000

1,985,075

 

5,743,155

TOTAL ENERGY

6,240,369

FINANCIALS - 1.7%

Diversified Financial Services - 0.4%

The NASDAQ Stock Market, Inc. 2.5% 8/15/13 (g)

2,300,000

1,822,750

Real Estate Investment Trusts - 1.3%

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

2,910,000

2,559,927

Host Hotels & Resorts LP 2.625% 4/15/27 (g)

735,000

532,875

SL Green Realty Corp. 3% 3/30/27 (g)

600,000

365,250

Ventas, Inc. 3.875% 11/15/11 (g)

3,220,000

2,608,200

 

6,066,252

TOTAL FINANCIALS

7,889,002

HEALTH CARE - 4.0%

Biotechnology - 0.7%

Amgen, Inc.:

0.125% 2/1/11

1,300,000

1,197,703

0.375% 2/1/13

1,310,000

1,159,350

Cephalon, Inc. 2% 6/1/15

420,000

589,890

Gilead Sciences, Inc. 0.625% 5/1/13

280,000

348,964

 

3,295,907

Health Care Equipment & Supplies - 1.8%

Beckman Coulter, Inc.:

2.5% 12/15/36 (g)

2,000,000

1,807,600

2.5% 12/15/36

1,430,000

1,292,434

Inverness Medical Innovations, Inc.:

3% 5/15/16 (g)

4,000,000

3,040,000

3% 5/15/16

1,700,000

1,292,000

Corporate Bonds - continued

 

Principal Amount

Value

Convertible Bonds - continued

HEALTH CARE - continued

Health Care Equipment & Supplies - continued

Kinetic Concepts, Inc. 3.25% 4/15/15 (g)

$ 600,000

$ 409,920

Medtronic, Inc. 1.625% 4/15/13

590,000

513,330

 

8,355,284

Health Care Providers & Services - 0.8%

Chemed Corp. 1.875% 5/15/14

150,000

110,625

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

5,280,000

3,802,656

 

3,913,281

Life Sciences Tools & Services - 0.4%

Fisher Scientific International, Inc. 2.5% 10/1/23

1,270,000

1,993,900

Pharmaceuticals - 0.3%

Mylan, Inc.:

1.25% 3/15/12

790,000

664,627

3.75% 9/15/15 (g)

450,000

481,185

 

1,145,812

TOTAL HEALTH CARE

18,704,184

INDUSTRIALS - 1.1%

Aerospace & Defense - 0.4%

Alliant Techsystems, Inc.:

2.75% 9/15/11

730,000

705,618

3% 8/15/24

1,080,000

1,116,828

 

1,822,446

Commercial Services & Supplies - 0.0%

United Rentals North America, Inc. 1.875% 10/15/23

140,000

92,778

Construction & Engineering - 0.1%

Quanta Services, Inc. 3.75% 4/30/26

190,000

188,100

Electrical Equipment - 0.2%

General Cable Corp.:

0.875% 11/15/13

570,000

370,500

1% 10/15/12

990,000

673,497

 

1,043,997

Machinery - 0.2%

AGCO Corp. 1.25% 12/15/36

380,000

280,022

Barnes Group, Inc.:

3.375% 3/15/27

320,000

187,200

Corporate Bonds - continued

 

Principal Amount

Value

Convertible Bonds - continued

INDUSTRIALS - continued

Machinery - continued

Barnes Group, Inc.: - continued

3.75% 8/1/25

$ 220,000

$ 181,500

Danaher Corp. 0% 1/22/21

130,000

107,146

 

755,868

Marine - 0.0%

Horizon Lines, Inc. 4.25% 8/15/12

190,000

89,737

Professional Services - 0.2%

CBIZ, Inc. 3.125% 6/1/26

270,000

233,888

FTI Consulting, Inc. 3.75% 7/15/12

510,000

646,425

 

880,313

TOTAL INDUSTRIALS

4,873,239

INFORMATION TECHNOLOGY - 4.0%

Communications Equipment - 0.7%

Finisar Corp. 2.5% 10/15/10

2,250,000

1,124,775

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

1,290,000

1,254,525

Lucent Technologies, Inc.:

2.875% 6/15/23

700,000

593,250

2.875% 6/15/25

800,000

347,688

 

3,320,238

Computers & Peripherals - 0.4%

EMC Corp.:

1.75% 12/1/11

310,000

301,956

1.75% 12/1/13

1,240,000

1,171,502

Maxtor Corp. 2.375% 8/15/12

390,000

231,348

 

1,704,806

Electronic Equipment & Components - 0.6%

Anixter International, Inc. 0% 7/7/33

190,000

98,148

Flextronics International Ltd. 1% 8/1/10

697,000

625,558

FLIR Systems, Inc. 3% 6/1/23

40,000

73,576

Itron, Inc. 2.5% 8/1/26

870,000

806,751

L-1 Identity Solutions, Inc. 3.75% 5/15/27

2,075,000

1,318,248

 

2,922,281

Internet Software & Services - 0.3%

VeriSign, Inc. 3.25% 8/15/37

1,930,000

1,305,066

Corporate Bonds - continued

 

Principal Amount

Value

Convertible Bonds - continued

INFORMATION TECHNOLOGY - continued

IT Services - 1.0%

CACI International, Inc. 2.125% 5/1/14

$ 4,410,000

$ 4,165,245

VeriFone Holdings, Inc. 1.375% 6/15/12

870,000

399,069

 

4,564,314

Semiconductors & Semiconductor Equipment - 0.8%

Advanced Micro Devices, Inc. 6% 5/1/15

2,240,000

817,600

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

190,000

113,468

Diodes, Inc. 2.25% 10/1/26

420,000

296,520

Intel Corp. 2.95% 12/15/35

1,560,000

1,202,573

Micron Technology, Inc. 1.875% 6/1/14

460,000

170,136

ON Semiconductor Corp. 2.625% 12/15/26

1,860,000

1,175,334

 

3,775,631

Software - 0.2%

Symantec Corp. 1% 6/15/13

1,130,000

1,046,663

TOTAL INFORMATION TECHNOLOGY

18,638,999

MATERIALS - 0.2%

Chemicals - 0.1%

Ferro Corp. 6.5% 8/15/13

400,000

134,500

Metals & Mining - 0.1%

Century Aluminum Co. 1.75% 8/1/24

350,000

161,000

Newmont Mining Corp. 3% 2/15/12

190,000

222,300

Placer Dome, Inc. 2.75% 10/15/23

150,000

194,820

 

578,120

TOTAL MATERIALS

712,620

TELECOMMUNICATION SERVICES - 0.8%

Diversified Telecommunication Services - 0.3%

Qwest Communications International, Inc. 3.5% 11/15/25

770,000

703,588

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

660,000

455,400

 

1,158,988

Wireless Telecommunication Services - 0.5%

American Tower Corp. 3% 8/15/12

100,000

142,110

Corporate Bonds - continued

 

Principal Amount

Value

Convertible Bonds - continued

TELECOMMUNICATION SERVICES - continued

Wireless Telecommunication Services - continued

Leap Wireless International, Inc. 4.5% 7/15/14 (g)

$ 3,130,000

$ 2,131,217

Nextel Communications, Inc. 5.25% 1/15/10

180,000

169,200

 

2,442,527

TOTAL TELECOMMUNICATION SERVICES

3,601,515

UTILITIES - 0.0%

Multi-Utilities - 0.0%

CMS Energy Corp. 2.875% 12/1/24

230,000

225,607

TOTAL CONVERTIBLE BONDS

71,737,554

Nonconvertible Bonds - 2.2%

FINANCIALS - 1.8%

Capital Markets - 0.5%

JPMorgan Chase Capital XXII 6.45% 2/2/37

3,000,000

2,149,860

Lehman Brothers Holdings, Inc.:

2.0863% (d)(h)

1,000,000

100

5.857% (d)(h)

1,000,000

100

 

2,150,060

Commercial Banks - 0.5%

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

2,000,000

840,000

Wells Fargo Capital X 5.95% 12/15/36

1,000,000

710,000

Wells Fargo Capital XIII 7.7% (h)

2,000,000

973,760

 

2,523,760

Diversified Financial Services - 0.8%

Citigroup, Inc. 8.4% (h)

1,000,000

325,000

Goldman Sachs Capital II 5.793% (h)

2,000,000

776,832

JPMorgan Chase & Co. 7.9% (h)

4,000,000

2,759,440

 

3,861,272

TOTAL FINANCIALS

8,535,092

Corporate Bonds - continued

 

Principal Amount

Value

Nonconvertible Bonds - continued

UTILITIES - 0.4%

Multi-Utilities - 0.4%

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

$ 3,000,000

$ 1,830,000

TOTAL NONCONVERTIBLE BONDS

10,365,092

TOTAL CORPORATE BONDS

(Cost $103,872,050)

82,102,646

Common Stocks - 59.2%

Shares

 

CONSUMER DISCRETIONARY - 5.5%

Auto Components - 0.2%

Federal-Mogul Corp. Class A (a)

118,800

768,636

Gentex Corp.

35,700

285,600

 

1,054,236

Diversified Consumer Services - 0.5%

Brinks Home Security Holdings, Inc. (a)

23,800

499,086

H&R Block, Inc.

41,600

794,560

Hillenbrand, Inc.

71,300

1,195,701

 

2,489,347

Hotels, Restaurants & Leisure - 0.8%

Gaylord Entertainment Co. (a)(f)

47,800

313,568

Las Vegas Sands Corp. unit

16,900

642,200

McDonald's Corp.

44,649

2,332,910

WMS Industries, Inc. (a)

13,000

235,690

 

3,524,368

Household Durables - 2.2%

Black & Decker Corp.

23,600

558,612

Centex Corp.

153,900

955,719

D.R. Horton, Inc.

150,358

1,270,525

KB Home

160,098

1,424,872

Meritage Homes Corp. (a)

131,900

1,308,448

NVR, Inc. (a)

2,100

698,817

Pulte Homes, Inc.

197,200

1,810,296

Ryland Group, Inc.

100,900

1,425,717

The Stanley Works

23,510

629,128

 

10,082,134

Common Stocks - continued

Shares

Value

CONSUMER DISCRETIONARY - continued

Media - 0.4%

The Walt Disney Co.

59,600

$ 999,492

Time Warner, Inc.

109,100

832,433

 

1,831,925

Specialty Retail - 1.1%

Home Depot, Inc.

100,600

2,101,534

Lowe's Companies, Inc.

52,200

826,848

OfficeMax, Inc.

91,600

349,912

Staples, Inc.

57,000

909,150

The Children's Place Retail Stores, Inc. (a)

51,840

947,635

 

5,135,079

Textiles, Apparel & Luxury Goods - 0.3%

Polo Ralph Lauren Corp. Class A

14,700

506,709

VF Corp.

14,100

731,790

 

1,238,499

TOTAL CONSUMER DISCRETIONARY

25,355,588

CONSUMER STAPLES - 3.0%

Beverages - 0.4%

Carlsberg AS:

Series A

12,500

480,522

Series B

3,475

117,102

Molson Coors Brewing Co. Class B

10,900

384,007

The Coca-Cola Co.

24,321

993,513

 

1,975,144

Food & Staples Retailing - 0.7%

Kroger Co.

41,600

859,872

Wal-Mart Stores, Inc.

42,500

2,092,700

Winn-Dixie Stores, Inc. (a)

35,666

344,890

 

3,297,462

Food Products - 0.7%

B&G Foods, Inc. unit

156,900

1,471,722

Cermaq ASA

2,800

11,328

Ralcorp Holdings, Inc. (a)

13,900

842,340

Tyson Foods, Inc. Class A

86,500

729,195

 

3,054,585

Household Products - 0.6%

Procter & Gamble Co.

55,400

2,668,618

Common Stocks - continued

Shares

Value

CONSUMER STAPLES - continued

Tobacco - 0.6%

British American Tobacco PLC (United Kingdom)

55,300

$ 1,413,343

Philip Morris International, Inc.

44,000

1,472,680

 

2,886,023

TOTAL CONSUMER STAPLES

13,881,832

ENERGY - 8.7%

Energy Equipment & Services - 0.8%

National Oilwell Varco, Inc. (a)

80,300

2,146,419

Noble Corp.

56,250

1,383,188

 

3,529,607

Oil, Gas & Consumable Fuels - 7.9%

Chesapeake Energy Corp.

90,800

1,420,112

Chevron Corp.

111,300

6,757,023

ConocoPhillips

81,200

3,032,820

Exxon Mobil Corp.

266,340

18,084,475

Foundation Coal Holdings, Inc.

72,700

1,169,016

Noble Energy, Inc.

35,000

1,593,900

Range Resources Corp.

34,000

1,209,380

Southwestern Energy Co. (a)

75,800

2,180,766

Ultra Petroleum Corp. (a)

38,500

1,352,890

 

36,800,382

TOTAL ENERGY

40,329,989

FINANCIALS - 20.0%

Capital Markets - 2.0%

Bank of New York Mellon Corp.

95,139

2,109,232

Charles Schwab Corp.

87,500

1,112,125

Goldman Sachs Group, Inc.

34,000

3,096,720

Morgan Stanley

141,200

2,759,048

 

9,077,125

Commercial Banks - 2.3%

Comerica, Inc.

46,700

700,967

KeyCorp

188,700

1,322,787

Pacific Continental Corp.

35,500

399,020

PacWest Bancorp

61,800

845,424

PNC Financial Services Group, Inc.

34,300

937,762

TCF Financial Corp.

63,600

779,736

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Commercial Banks - continued

U.S. Bancorp, Delaware

110,700

$ 1,584,117

Wells Fargo & Co.

336,500

4,071,650

 

10,641,463

Diversified Financial Services - 2.2%

Bank of America Corp.

553,569

2,186,598

Citigroup, Inc.

526,300

789,450

JPMorgan Chase & Co.

317,740

7,260,359

 

10,236,407

Insurance - 2.4%

ACE Ltd.

31,900

1,164,669

Axis Capital Holdings Ltd.

82,918

1,855,705

Endurance Specialty Holdings Ltd.

71,500

1,599,455

Everest Re Group Ltd.

51,700

3,367,221

MetLife, Inc.

25,798

476,231

Reinsurance Group of America, Inc.

9,761

265,499

RenaissanceRe Holdings Ltd.

28,800

1,296,864

The Travelers Companies, Inc.

34,000

1,229,100

 

11,254,744

Real Estate Investment Trusts - 10.5%

Alexandria Real Estate Equities, Inc.

32,800

1,310,688

American Campus Communities, Inc.

34,000

582,080

Apartment Investment & Management Co. Class A

153,984

803,796

AvalonBay Communities, Inc.

21,675

919,454

Boston Properties, Inc.

37,314

1,383,976

Camden Property Trust (SBI)

74,400

1,397,976

CBL & Associates Properties, Inc.

233,700

724,470

Corporate Office Properties Trust (SBI)

85,400

2,135,000

Developers Diversified Realty Corp.

169,500

500,025

DiamondRock Hospitality Co.

225,800

697,722

Digital Realty Trust, Inc.

86,900

2,597,441

Duke Realty LP

100,200

691,380

Equity Residential (SBI)

96,180

1,692,768

HCP, Inc.

74,100

1,353,807

Healthcare Realty Trust, Inc.

115,600

1,675,044

Highwoods Properties, Inc. (SBI)

124,500

2,351,805

Home Properties, Inc. (f)

52,400

1,390,696

Host Hotels & Resorts, Inc.

92,845

343,527

Inland Real Estate Corp.

130,900

1,021,020

Kilroy Realty Corp.

26,300

489,443

Kimco Realty Corp.

105,538

934,011

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Real Estate Investment Trusts - continued

LaSalle Hotel Properties (SBI)

89,700

$ 477,204

Omega Healthcare Investors, Inc.

46,500

610,545

Plum Creek Timber Co., Inc.

43,500

1,141,005

Potlatch Corp.

59,830

1,362,329

ProLogis Trust

268,165

1,552,675

Public Storage

58,036

3,219,837

Rayonier, Inc.

30,120

801,192

Regency Centers Corp.

53,500

1,443,430

Simon Property Group, Inc.

103,910

3,439,421

SL Green Realty Corp.

91,800

1,066,716

Sunstone Hotel Investors, Inc.

364,256

797,721

Tanger Factory Outlet Centers, Inc. (f)

31,400

866,640

The Macerich Co. (f)

73,700

841,654

UDR, Inc.

76,000

601,160

Ventas, Inc.

121,300

2,616,441

Vornado Realty Trust

88,950

2,911,334

Westfield Group unit

4,986

33,436

 

48,778,869

Real Estate Management & Development - 0.5%

Brookfield Properties Corp.

88,800

439,561

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

373,600

1,079,704

Forestar Group, Inc. (a)

98,300

739,216

 

2,258,481

Thrifts & Mortgage Finance - 0.1%

Washington Federal, Inc.

63,185

719,677

TOTAL FINANCIALS

92,966,766

HEALTH CARE - 6.8%

Biotechnology - 0.7%

Amgen, Inc. (a)

51,700

2,529,681

Biogen Idec, Inc. (a)

16,900

778,076

 

3,307,757

Health Care Equipment & Supplies - 1.1%

Baxter International, Inc.

30,000

1,527,300

C.R. Bard, Inc.

15,088

1,210,963

Covidien Ltd.

55,582

1,760,282

Hospira, Inc. (a)

25,900

600,880

 

5,099,425

Common Stocks - continued

Shares

Value

HEALTH CARE - continued

Health Care Providers & Services - 0.7%

AmerisourceBergen Corp.

23,700

$ 752,712

Capital Senior Living Corp. (a)

10,500

30,450

Emeritus Corp. (a)

124,401

835,975

Medco Health Solutions, Inc. (a)

26,370

1,070,095

Universal Health Services, Inc. Class B

18,600

685,038

 

3,374,270

Pharmaceuticals - 4.3%

Johnson & Johnson

79,400

3,970,000

Merck & Co., Inc.

121,900

2,949,980

Pfizer, Inc.

555,800

6,841,898

Schering-Plough Corp.

82,900

1,441,631

Teva Pharmaceutical Industries Ltd. sponsored ADR

27,700

1,234,866

Wyeth

79,400

3,241,108

 

19,679,483

TOTAL HEALTH CARE

31,460,935

INDUSTRIALS - 2.6%

Aerospace & Defense - 0.8%

Heico Corp. Class A

16,414

327,788

Lockheed Martin Corp.

9,500

599,545

Northrop Grumman Corp.

31,700

1,184,312

Raytheon Co.

21,000

839,370

Stanley, Inc. (a)

20,600

638,806

 

3,589,821

Airlines - 0.1%

AirTran Holdings, Inc. (a)

57,521

171,988

Delta Air Lines, Inc. (a)

57,375

288,596

US Airways Group, Inc. (a)

36,500

104,025

 

564,609

Building Products - 0.3%

Masco Corp.

75,900

390,885

Owens Corning (a)

111,900

934,365

 

1,325,250

Commercial Services & Supplies - 0.4%

R.R. Donnelley & Sons Co.

55,400

431,566

Republic Services, Inc.

80,470

1,601,353

 

2,032,919

Common Stocks - continued

Shares

Value

INDUSTRIALS - continued

Machinery - 0.3%

Cummins, Inc.

31,100

$ 646,880

PACCAR, Inc.

33,200

832,324

 

1,479,204

Professional Services - 0.1%

Equifax, Inc.

25,700

552,550

Road & Rail - 0.5%

Con-way, Inc.

58,594

885,355

Ryder System, Inc.

17,400

397,764

Union Pacific Corp.

22,400

840,448

 

2,123,567

Trading Companies & Distributors - 0.1%

Beacon Roofing Supply, Inc. (a)

21,500

235,855

TOTAL INDUSTRIALS

11,903,775

INFORMATION TECHNOLOGY - 6.4%

Communications Equipment - 0.6%

Cisco Systems, Inc. (a)

83,300

1,213,681

Juniper Networks, Inc. (a)

116,700

1,658,307

 

2,871,988

Computers & Peripherals - 0.4%

International Business Machines Corp.

14,400

1,325,232

NCR Corp. (a)

87,900

696,168

 

2,021,400

Electronic Equipment & Components - 1.6%

Agilent Technologies, Inc. (a)

12,500

173,375

Amphenol Corp. Class A

124,600

3,167,332

Arrow Electronics, Inc. (a)

72,233

1,201,235

Avnet, Inc. (a)

67,700

1,169,179

Flextronics International Ltd. (a)

105,400

217,124

Ingram Micro, Inc. Class A (a)

89,350

973,022

Tyco Electronics Ltd.

33,325

315,921

 

7,217,188

Internet Software & Services - 0.3%

VeriSign, Inc. (a)

72,400

1,399,492

IT Services - 1.4%

Fidelity National Information Services, Inc.

43,000

752,500

Lender Processing Services, Inc.

75,182

1,969,017

NCI, Inc. Class A (a)

71,340

1,940,448

Common Stocks - continued

Shares

Value

INFORMATION TECHNOLOGY - continued

IT Services - continued

The Western Union Co.

37,400

$ 417,384

Visa, Inc.

26,700

1,514,157

 

6,593,506

Semiconductors & Semiconductor Equipment - 2.1%

Analog Devices, Inc.

42,600

794,064

Applied Materials, Inc.

92,500

851,925

ASML Holding NV (NY Shares)

55,500

839,715

Intel Corp.

108,100

1,377,194

Lam Research Corp. (a)

43,395

848,806

ON Semiconductor Corp. (a)

379,300

1,388,238

Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR

116,333

877,151

Texas Instruments, Inc.

100,800

1,446,480

Varian Semiconductor Equipment Associates, Inc. (a)

65,200

1,189,900

 

9,613,473

TOTAL INFORMATION TECHNOLOGY

29,717,047

MATERIALS - 1.3%

Chemicals - 0.6%

Albemarle Corp.

51,856

1,003,414

Arkema

16,100

214,571

Celanese Corp. Class A

82,100

701,134

Lubrizol Corp.

15,919

437,613

Solutia, Inc. (a)

98,620

369,825

 

2,726,557

Containers & Packaging - 0.4%

Pactiv Corp. (a)

38,100

603,123

Rock-Tenn Co. Class A

16,900

466,609

Temple-Inland, Inc.

123,711

587,627

 

1,657,359

Metals & Mining - 0.3%

Barrick Gold Corp.

10,600

320,379

Freeport-McMoRan Copper & Gold, Inc. Class B

10,600

322,452

Goldcorp, Inc.

10,700

310,869

Kinross Gold Corp.

22,100

349,528

Newmont Mining Corp.

8,000

333,040

 

1,636,268

TOTAL MATERIALS

6,020,184

Common Stocks - continued

Shares

Value

TELECOMMUNICATION SERVICES - 2.3%

Diversified Telecommunication Services - 2.3%

AT&T, Inc.

271,115

$ 6,444,404

Verizon Communications, Inc.

148,200

4,228,146

 

10,672,550

UTILITIES - 2.6%

Electric Utilities - 1.2%

Entergy Corp.

21,300

1,435,407

Exelon Corp.

56,500

2,667,930

FirstEnergy Corp.

38,100

1,621,536

 

5,724,873

Multi-Utilities - 1.4%

Sempra Energy

59,700

2,481,729

Wisconsin Energy Corp.

99,700

3,970,054

 

6,451,783

TOTAL UTILITIES

12,176,656

TOTAL COMMON STOCKS

(Cost $420,322,901)

274,485,322

Preferred Stocks - 21.2%

 

 

 

 

Convertible Preferred Stocks - 6.7%

CONSUMER DISCRETIONARY - 0.2%

Hotels, Restaurants & Leisure - 0.0%

Six Flags, Inc. 7.25% PIERS

2,100

1,903

Media - 0.2%

Emmis Communications Corp. Series A, 6.25%

10,100

19,998

Interpublic Group of Companies, Inc. 5.25%

2,500

896,875

 

916,873

TOTAL CONSUMER DISCRETIONARY

918,776

CONSUMER STAPLES - 0.5%

Food Products - 0.5%

Archer Daniels Midland Co. 6.25%

26,300

929,442

Preferred Stocks - continued

Shares

Value

Convertible Preferred Stocks - continued

CONSUMER STAPLES - continued

Food Products - continued

Bunge Ltd.:

4.875%

700

$ 44,442

5.125%

2,800

1,286,494

 

2,260,378

ENERGY - 1.0%

Oil, Gas & Consumable Fuels - 1.0%

Chesapeake Energy Corp. 4.50%

20,500

1,191,563

El Paso Corp.:

4.99% (g)

3,000

1,845,090

4.99%

2,200

1,353,066

 

4,389,719

FINANCIALS - 1.1%

Commercial Banks - 0.5%

KeyCorp Series A, 7.75%

12,100

744,150

Wells Fargo & Co. 7.50%

3,439

1,581,940

 

2,326,090

Diversified Financial Services - 0.5%

Bank of America Corp. Series L, 7.25%

3,582

1,271,610

Carriage Services Capital Trust 7.00% TIDES

45,000

1,125,000

CIT Group, Inc. Series C, 8.75%

8,000

119,360

 

2,515,970

Insurance - 0.0%

American International Group, Inc. Series A, 8.50%

13,300

61,313

Real Estate Investment Trusts - 0.1%

HRPT Properties Trust 6.50%

34,390

318,383

TOTAL FINANCIALS

5,221,756

HEALTH CARE - 0.6%

Health Care Providers & Services - 0.2%

HealthSouth Corp. Series A 6.50%

2,800

1,093,708

Pharmaceuticals - 0.4%

Mylan, Inc. 6.50%

2,115

1,718,438

TOTAL HEALTH CARE

2,812,146

Preferred Stocks - continued

Shares

Value

Convertible Preferred Stocks - continued

INDUSTRIALS - 0.3%

Commercial Services & Supplies - 0.1%

Avery Dennison Corp. 7.875%

14,800

$ 381,840

Road & Rail - 0.2%

Kansas City Southern 5.125%

1,645

1,124,325

TOTAL INDUSTRIALS

1,506,165

INFORMATION TECHNOLOGY - 0.0%

Communications Equipment - 0.0%

Lucent Technologies Capital Trust I 77.50%

600

150,000

MATERIALS - 1.3%

Chemicals - 0.2%

Celanese Corp. 4.25%

86,600

1,085,098

Metals & Mining - 1.1%

Freeport-McMoRan Copper & Gold, Inc.:

5.50%

3,302

2,526,813

6.75%

48,000

2,596,176

 

5,122,989

TOTAL MATERIALS

6,208,087

TELECOMMUNICATION SERVICES - 0.1%

Wireless Telecommunication Services - 0.1%

Crown Castle International Corp. 6.25% PIERS

7,200

309,600

UTILITIES - 1.6%

Independent Power Producers & Energy Traders - 0.3%

NRG Energy, Inc. 4.00% (g)

1,650

1,563,375

Multi-Utilities - 1.3%

CMS Energy Corp. 4.50%

100,000

5,874,000

TOTAL UTILITIES

7,437,375

TOTAL CONVERTIBLE PREFERRED STOCKS

31,214,002

Nonconvertible Preferred Stocks - 14.5%

CONSUMER DISCRETIONARY - 0.1%

Media - 0.1%

CBS Corp. 6.75%

40,000

481,200

Preferred Stocks - continued

Shares

Value

Nonconvertible Preferred Stocks - continued

CONSUMER STAPLES - 0.5%

Food Products - 0.5%

H.J. Heinz Finance Co. 8.00% (g)

30

$ 2,430,000

ENERGY - 0.3%

Oil, Gas & Consumable Fuels - 0.3%

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

19,375

1,472,500

FINANCIALS - 5.5%

Capital Markets - 1.2%

Deutsche Bank Contingent Capital Trust II 6.55%

80,000

697,600

Goldman Sachs Group, Inc.:

Series C, 4.9931%

40,000

506,000

Series D, 4.00%

200,000

2,400,000

Morgan Stanley Capital I Trust 6.60%

120,000

1,701,600

 

5,305,200

Commercial Banks - 1.7%

ABN AMRO Capital Funding Trust V 5.90%

20,000

70,000

ABN Amro Capital Funding Trust VII 6.08%

40,400

144,228

Barclays Bank PLC Series 2

40,000

250,000

BNY Capital V 5.95%

115,000

1,979,150

First Tennessee Bank NA, Memphis 3.90% (g)

5,000

1,000,000

Keycorp Capital IX 6.75%

40,000

417,200

Royal Bank of Scotland Group PLC Series R, 6.125%

40,000

160,000

Santander Finance Preferred SA Unipersonal:

4.00%

40,000

300,000

6.50%

40,000

530,000

6.80%

160,000

1,953,600

USB Capital XII 6.30%

80,000

1,200,000

 

8,004,178

Consumer Finance - 0.0%

SLM Corp. 4.07%

1,200

15,420

Diversified Financial Services - 0.9%

Bank of America Corp.:

3.00%

70,000

309,400

4.00%

97,700

505,109

Series D, 6.204%

20,000

146,000

Series E, 4.00%

80,000

448,000

Series H, 8.20%

80,000

699,200

Preferred Stocks - continued

Shares

Value

Nonconvertible Preferred Stocks - continued

FINANCIALS - continued

Diversified Financial Services - continued

Deutsche Bank Capital Funding Trust VIII 6.375%

80,000

$ 704,000

General Electric Capital Corp. 6.05%

80,000

1,356,000

 

4,167,709

Insurance - 0.1%

MetLife, Inc. Series A, 4.39%

40,000

424,000

Real Estate Investment Trusts - 1.2%

Apartment Investment & Management Co. Series V, 8.00%

79,000

850,040

Hospitality Properties Trust:

Series B, 8.875%

125,000

1,525,000

Series C, 7.00%

100,000

1,009,000

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

20,000

342,000

Public Storage Series M, 6.625%

80,000

1,373,600

Vornado Realty Trust Series E, 7.00%

40,000

558,800

 

5,658,440

Thrifts & Mortgage Finance - 0.4%

Fannie Mae:

Series E, 5.10%

27,562

6,891

Series H, 5.81%

71,200

119,616

Series I, 5.375%

5,000

6,750

Series L, 5.125%

140,900

112,720

Series N, 5.50%

92,650

74,120

Series O, 7.00%

42,200

37,136

Series R, 7.65%

40,000

28,000

Series T, 8.25%

40,000

30,000

Freddie Mac:

5.30%

40,000

14,000

Series F, 5.00%

68,500

32,880

Series H, 5.10%

10,300

4,223

Series K, 5.79%

25,200

12,600

Series O, 5.81%

19,500

15,600

Series R, 5.70%

117,000

76,050

Series S, 4.00%

10,000

5,000

Series U, 5.90%

40,000

14,000

Series V, 5.57%

566,000

181,120

Preferred Stocks - continued

Shares

Value

Nonconvertible Preferred Stocks - continued

FINANCIALS - continued

Thrifts & Mortgage Finance - continued

Freddie Mac: - continued

Series W, 5.66%

161,600

$ 54,944

Sovereign Bancorp, Inc. Series C, 7.30%

80,000

887,200

 

1,712,850

TOTAL FINANCIALS

25,287,797

MATERIALS - 0.3%

Chemicals - 0.2%

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

9,900

714,285

Metals & Mining - 0.1%

Alcoa, Inc. 3.75%

6,400

393,600

TOTAL MATERIALS

1,107,885

TELECOMMUNICATION SERVICES - 1.0%

Diversified Telecommunication Services - 1.0%

AT&T, Inc. 6.375%

181,800

4,574,088

UTILITIES - 6.8%

Electric Utilities - 5.9%

Alabama Power Co.:

4.60%

2,000

80,000

5.20%

84,600

1,789,290

5.625%

80,000

1,540,000

6.45%

80,000

1,640,000

Baltimore Gas & Electric Co. Series 1993, 6.70%

10,000

880,000

Duquesne Light Co. 6.50%

106,050

3,711,750

FPL Group Capital Trust I 5.875%

20,000

486,800

FPL Group Capital, Inc. Series E, 7.45%

80,000

2,052,800

Mid-American Energy Co. 4.40%

5,000

370,625

Pacific Gas & Electric Co.:

Series A, 5.00%

16,900

363,350

Series B, 5.50%

61,900

1,509,741

Series D 5.00%

69,200

1,522,400

PPL Electric Utilities Corp. 6.25%

230,000

4,980,949

Southern California Edison Co.:

6.125%

35,000

2,730,000

Series B, 4.08%

27,271

477,788

Preferred Stocks - continued

Shares

Value

Nonconvertible Preferred Stocks - continued

UTILITIES - continued

Electric Utilities - continued

Southern California Edison Co.: - continued

Series C:

4.24%

94,600

$ 1,702,800

6.00%

20,000

1,100,000

Series D, 4.32%

15,000

276,000

 

27,214,293

Independent Power Producers & Energy Traders - 0.0%

Heco Capital Trust III 6.50%

12,000

276,000

Multi-Utilities - 0.9%

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

28,705

2,443,944

San Diego Gas & Electric Co. 1.70%

67,548

1,661,262

 

4,105,206

TOTAL UTILITIES

31,595,499

TOTAL NONCONVERTIBLE PREFERRED STOCKS

66,948,969

TOTAL PREFERRED STOCKS

(Cost $204,913,757)

98,162,971

Preferred Securities - 0.3%

Principal Amount

 

FINANCIALS - 0.3%

Commercial Banks - 0.3%

PNC Preferred Funding Trust I 6.517% 12/31/49 (g)(h)

$ 3,000,000

1,241,274

SunTrust Preferred Capital I 5.853% 12/15/49 (h)

1,000,000

212,221

 

1,453,495

TOTAL PREFERRED SECURITIES

(Cost $4,000,000)

1,453,495

Money Market Funds - 1.4%

Shares

Value

Fidelity Cash Central Fund, 0.59% (b)

4,927,654

$ 4,927,654

Fidelity Securities Lending Cash Central Fund, 0.66% (b)(c)

1,775,400

1,775,400

TOTAL MONEY MARKET FUNDS

(Cost $6,703,054)

6,703,054

TOTAL INVESTMENT PORTFOLIO - 99.8%

(Cost $739,811,762)

462,907,488

NET OTHER ASSETS - 0.2%

958,397

NET ASSETS - 100%

$ 463,865,885

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) Non-income producing - Issuer is in default.

(e) 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.

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

(g) 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 $22,781,650 or 4.9% of net assets.

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

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

$ 22,382

Fidelity Securities Lending Cash Central Fund

3,355

Total

$ 25,737

Other Information

The following is a summary of the inputs used, as of February 28, 2009, 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 tables 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

$ 462,907,488

$ 325,551,014

$ 136,256,474

$ 1,100,000

The following is a reconciliation of assets for which Level 3 inputs were used in determining value:

 

Investments in Securities

Beginning Balance

$ 2,000,000

Total Realized Gain (Loss)

(78,312)

Total Unrealized Gain (Loss)

(1,047,800)

Cost of Purchases

-

Proceeds of Sales

(231,688)

Amortization/Accretion

-

Transfer in/out of Level 3

457,800

Ending Balance

$ 1,100,000

The information used in the above reconciliation represents fiscal year to date activity for any Investment Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period.

Income Tax Information

At February 28, 2009, the aggregate cost of investment securities for income tax purposes was $755,197,579. Net unrealized depreciation aggregated $292,290,091, of which $7,473,377 related to appreciated investment securities and $299,763,468 related to depreciated investment securities.

Investment Valuation

Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Security transactions are accounted for as of trade date. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.

Debt securities, including restricted securities, are valued by independent pricing services or by dealers who make markets in such securities. Certain of the Fund's securities are valued at period end by a single source or dealer. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as available 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. 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. Actual prices received at disposition may differ.

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 net asset value calculation under these procedures may differ from published prices for the same securities.

The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157). 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 ® Advisor Strategic
Dividend & Income Fund
Class A
Class T
Class B
Class C
Institutional Class

February 28, 2009

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

1.814340.104

ASDI-QTLY-0409

Investments February 28, 2009 (Unaudited)

Showing Percentage of Net Assets

Corporate Bonds - 17.7%

 

Principal Amount

Value

Convertible Bonds - 15.5%

CONSUMER DISCRETIONARY - 0.8%

Hotels, Restaurants & Leisure - 0.1%

Carnival Corp. 2% 4/15/21

$ 290,000

$ 259,028

Scientific Games Corp. 0.75% 12/1/24 (e)

240,000

208,344

 

467,372

Media - 0.6%

Interpublic Group of Companies, Inc. 4.75% 3/15/23

580,000

358,092

Lamar Advertising Co. 2.875% 12/31/10

1,940,000

1,455,000

Regal Entertainment Group 6.25% 3/15/11 (g)

1,130,000

1,005,700

 

2,818,792

Specialty Retail - 0.1%

United Auto Group, Inc. 3.5% 4/1/26

260,000

167,952

Textiles, Apparel & Luxury Goods - 0.0%

Iconix Brand Group, Inc. 1.875% 6/30/12

200,000

129,500

TOTAL CONSUMER DISCRETIONARY

3,583,616

CONSUMER STAPLES - 1.6%

Beverages - 0.2%

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

970,000

991,049

Food & Staples Retailing - 0.7%

Nash-Finch Co. 1.6314% 3/15/35 (e)

1,320,000

511,183

The Great Atlantic & Pacific Tea Co. 5.125% 6/15/11

5,470,000

2,844,400

 

3,355,583

Food Products - 0.5%

Archer Daniels Midland Co. 0.875% 2/15/14

900,000

828,000

Smithfield Foods, Inc. 4% 6/30/13

980,000

605,738

Tyson Foods, Inc. 3.25% 10/15/13

1,070,000

889,309

 

2,323,047

Personal Products - 0.2%

Chattem, Inc.:

1.625% 5/1/14

430,000

372,638

2% 11/15/13

210,000

226,086

 

598,724

TOTAL CONSUMER STAPLES

7,268,403

Corporate Bonds - continued

 

Principal Amount

Value

Convertible Bonds - continued

ENERGY - 1.3%

Energy Equipment & Services - 0.1%

SESI LLC 1.5% 12/15/26 (e)(g)

$ 690,000

$ 497,214

Oil, Gas & Consumable Fuels - 1.2%

Alpha Natural Resources, Inc. 2.375% 4/15/15

1,960,000

1,341,424

Chesapeake Energy Corp. 2.5% 5/15/37

3,980,000

2,416,656

Peabody Energy Corp. 4.75% 12/15/66

2,930,000

1,985,075

 

5,743,155

TOTAL ENERGY

6,240,369

FINANCIALS - 1.7%

Diversified Financial Services - 0.4%

The NASDAQ Stock Market, Inc. 2.5% 8/15/13 (g)

2,300,000

1,822,750

Real Estate Investment Trusts - 1.3%

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

2,910,000

2,559,927

Host Hotels & Resorts LP 2.625% 4/15/27 (g)

735,000

532,875

SL Green Realty Corp. 3% 3/30/27 (g)

600,000

365,250

Ventas, Inc. 3.875% 11/15/11 (g)

3,220,000

2,608,200

 

6,066,252

TOTAL FINANCIALS

7,889,002

HEALTH CARE - 4.0%

Biotechnology - 0.7%

Amgen, Inc.:

0.125% 2/1/11

1,300,000

1,197,703

0.375% 2/1/13

1,310,000

1,159,350

Cephalon, Inc. 2% 6/1/15

420,000

589,890

Gilead Sciences, Inc. 0.625% 5/1/13

280,000

348,964

 

3,295,907

Health Care Equipment & Supplies - 1.8%

Beckman Coulter, Inc.:

2.5% 12/15/36 (g)

2,000,000

1,807,600

2.5% 12/15/36

1,430,000

1,292,434

Inverness Medical Innovations, Inc.:

3% 5/15/16 (g)

4,000,000

3,040,000

3% 5/15/16

1,700,000

1,292,000

Corporate Bonds - continued

 

Principal Amount

Value

Convertible Bonds - continued

HEALTH CARE - continued

Health Care Equipment & Supplies - continued

Kinetic Concepts, Inc. 3.25% 4/15/15 (g)

$ 600,000

$ 409,920

Medtronic, Inc. 1.625% 4/15/13

590,000

513,330

 

8,355,284

Health Care Providers & Services - 0.8%

Chemed Corp. 1.875% 5/15/14

150,000

110,625

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

5,280,000

3,802,656

 

3,913,281

Life Sciences Tools & Services - 0.4%

Fisher Scientific International, Inc. 2.5% 10/1/23

1,270,000

1,993,900

Pharmaceuticals - 0.3%

Mylan, Inc.:

1.25% 3/15/12

790,000

664,627

3.75% 9/15/15 (g)

450,000

481,185

 

1,145,812

TOTAL HEALTH CARE

18,704,184

INDUSTRIALS - 1.1%

Aerospace & Defense - 0.4%

Alliant Techsystems, Inc.:

2.75% 9/15/11

730,000

705,618

3% 8/15/24

1,080,000

1,116,828

 

1,822,446

Commercial Services & Supplies - 0.0%

United Rentals North America, Inc. 1.875% 10/15/23

140,000

92,778

Construction & Engineering - 0.1%

Quanta Services, Inc. 3.75% 4/30/26

190,000

188,100

Electrical Equipment - 0.2%

General Cable Corp.:

0.875% 11/15/13

570,000

370,500

1% 10/15/12

990,000

673,497

 

1,043,997

Machinery - 0.2%

AGCO Corp. 1.25% 12/15/36

380,000

280,022

Barnes Group, Inc.:

3.375% 3/15/27

320,000

187,200

Corporate Bonds - continued

 

Principal Amount

Value

Convertible Bonds - continued

INDUSTRIALS - continued

Machinery - continued

Barnes Group, Inc.: - continued

3.75% 8/1/25

$ 220,000

$ 181,500

Danaher Corp. 0% 1/22/21

130,000

107,146

 

755,868

Marine - 0.0%

Horizon Lines, Inc. 4.25% 8/15/12

190,000

89,737

Professional Services - 0.2%

CBIZ, Inc. 3.125% 6/1/26

270,000

233,888

FTI Consulting, Inc. 3.75% 7/15/12

510,000

646,425

 

880,313

TOTAL INDUSTRIALS

4,873,239

INFORMATION TECHNOLOGY - 4.0%

Communications Equipment - 0.7%

Finisar Corp. 2.5% 10/15/10

2,250,000

1,124,775

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

1,290,000

1,254,525

Lucent Technologies, Inc.:

2.875% 6/15/23

700,000

593,250

2.875% 6/15/25

800,000

347,688

 

3,320,238

Computers & Peripherals - 0.4%

EMC Corp.:

1.75% 12/1/11

310,000

301,956

1.75% 12/1/13

1,240,000

1,171,502

Maxtor Corp. 2.375% 8/15/12

390,000

231,348

 

1,704,806

Electronic Equipment & Components - 0.6%

Anixter International, Inc. 0% 7/7/33

190,000

98,148

Flextronics International Ltd. 1% 8/1/10

697,000

625,558

FLIR Systems, Inc. 3% 6/1/23

40,000

73,576

Itron, Inc. 2.5% 8/1/26

870,000

806,751

L-1 Identity Solutions, Inc. 3.75% 5/15/27

2,075,000

1,318,248

 

2,922,281

Internet Software & Services - 0.3%

VeriSign, Inc. 3.25% 8/15/37

1,930,000

1,305,066

Corporate Bonds - continued

 

Principal Amount

Value

Convertible Bonds - continued

INFORMATION TECHNOLOGY - continued

IT Services - 1.0%

CACI International, Inc. 2.125% 5/1/14

$ 4,410,000

$ 4,165,245

VeriFone Holdings, Inc. 1.375% 6/15/12

870,000

399,069

 

4,564,314

Semiconductors & Semiconductor Equipment - 0.8%

Advanced Micro Devices, Inc. 6% 5/1/15

2,240,000

817,600

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

190,000

113,468

Diodes, Inc. 2.25% 10/1/26

420,000

296,520

Intel Corp. 2.95% 12/15/35

1,560,000

1,202,573

Micron Technology, Inc. 1.875% 6/1/14

460,000

170,136

ON Semiconductor Corp. 2.625% 12/15/26

1,860,000

1,175,334

 

3,775,631

Software - 0.2%

Symantec Corp. 1% 6/15/13

1,130,000

1,046,663

TOTAL INFORMATION TECHNOLOGY

18,638,999

MATERIALS - 0.2%

Chemicals - 0.1%

Ferro Corp. 6.5% 8/15/13

400,000

134,500

Metals & Mining - 0.1%

Century Aluminum Co. 1.75% 8/1/24

350,000

161,000

Newmont Mining Corp. 3% 2/15/12

190,000

222,300

Placer Dome, Inc. 2.75% 10/15/23

150,000

194,820

 

578,120

TOTAL MATERIALS

712,620

TELECOMMUNICATION SERVICES - 0.8%

Diversified Telecommunication Services - 0.3%

Qwest Communications International, Inc. 3.5% 11/15/25

770,000

703,588

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

660,000

455,400

 

1,158,988

Wireless Telecommunication Services - 0.5%

American Tower Corp. 3% 8/15/12

100,000

142,110

Corporate Bonds - continued

 

Principal Amount

Value

Convertible Bonds - continued

TELECOMMUNICATION SERVICES - continued

Wireless Telecommunication Services - continued

Leap Wireless International, Inc. 4.5% 7/15/14 (g)

$ 3,130,000

$ 2,131,217

Nextel Communications, Inc. 5.25% 1/15/10

180,000

169,200

 

2,442,527

TOTAL TELECOMMUNICATION SERVICES

3,601,515

UTILITIES - 0.0%

Multi-Utilities - 0.0%

CMS Energy Corp. 2.875% 12/1/24

230,000

225,607

TOTAL CONVERTIBLE BONDS

71,737,554

Nonconvertible Bonds - 2.2%

FINANCIALS - 1.8%

Capital Markets - 0.5%

JPMorgan Chase Capital XXII 6.45% 2/2/37

3,000,000

2,149,860

Lehman Brothers Holdings, Inc.:

2.0863% (d)(h)

1,000,000

100

5.857% (d)(h)

1,000,000

100

 

2,150,060

Commercial Banks - 0.5%

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

2,000,000

840,000

Wells Fargo Capital X 5.95% 12/15/36

1,000,000

710,000

Wells Fargo Capital XIII 7.7% (h)

2,000,000

973,760

 

2,523,760

Diversified Financial Services - 0.8%

Citigroup, Inc. 8.4% (h)

1,000,000

325,000

Goldman Sachs Capital II 5.793% (h)

2,000,000

776,832

JPMorgan Chase & Co. 7.9% (h)

4,000,000

2,759,440

 

3,861,272

TOTAL FINANCIALS

8,535,092

Corporate Bonds - continued

 

Principal Amount

Value

Nonconvertible Bonds - continued

UTILITIES - 0.4%

Multi-Utilities - 0.4%

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

$ 3,000,000

$ 1,830,000

TOTAL NONCONVERTIBLE BONDS

10,365,092

TOTAL CORPORATE BONDS

(Cost $103,872,050)

82,102,646

Common Stocks - 59.2%

Shares

 

CONSUMER DISCRETIONARY - 5.5%

Auto Components - 0.2%

Federal-Mogul Corp. Class A (a)

118,800

768,636

Gentex Corp.

35,700

285,600

 

1,054,236

Diversified Consumer Services - 0.5%

Brinks Home Security Holdings, Inc. (a)

23,800

499,086

H&R Block, Inc.

41,600

794,560

Hillenbrand, Inc.

71,300

1,195,701

 

2,489,347

Hotels, Restaurants & Leisure - 0.8%

Gaylord Entertainment Co. (a)(f)

47,800

313,568

Las Vegas Sands Corp. unit

16,900

642,200

McDonald's Corp.

44,649

2,332,910

WMS Industries, Inc. (a)

13,000

235,690

 

3,524,368

Household Durables - 2.2%

Black & Decker Corp.

23,600

558,612

Centex Corp.

153,900

955,719

D.R. Horton, Inc.

150,358

1,270,525

KB Home

160,098

1,424,872

Meritage Homes Corp. (a)

131,900

1,308,448

NVR, Inc. (a)

2,100

698,817

Pulte Homes, Inc.

197,200

1,810,296

Ryland Group, Inc.

100,900

1,425,717

The Stanley Works

23,510

629,128

 

10,082,134

Common Stocks - continued

Shares

Value

CONSUMER DISCRETIONARY - continued

Media - 0.4%

The Walt Disney Co.

59,600

$ 999,492

Time Warner, Inc.

109,100

832,433

 

1,831,925

Specialty Retail - 1.1%

Home Depot, Inc.

100,600

2,101,534

Lowe's Companies, Inc.

52,200

826,848

OfficeMax, Inc.

91,600

349,912

Staples, Inc.

57,000

909,150

The Children's Place Retail Stores, Inc. (a)

51,840

947,635

 

5,135,079

Textiles, Apparel & Luxury Goods - 0.3%

Polo Ralph Lauren Corp. Class A

14,700

506,709

VF Corp.

14,100

731,790

 

1,238,499

TOTAL CONSUMER DISCRETIONARY

25,355,588

CONSUMER STAPLES - 3.0%

Beverages - 0.4%

Carlsberg AS:

Series A

12,500

480,522

Series B

3,475

117,102

Molson Coors Brewing Co. Class B

10,900

384,007

The Coca-Cola Co.

24,321

993,513

 

1,975,144

Food & Staples Retailing - 0.7%

Kroger Co.

41,600

859,872

Wal-Mart Stores, Inc.

42,500

2,092,700

Winn-Dixie Stores, Inc. (a)

35,666

344,890

 

3,297,462

Food Products - 0.7%

B&G Foods, Inc. unit

156,900

1,471,722

Cermaq ASA

2,800

11,328

Ralcorp Holdings, Inc. (a)

13,900

842,340

Tyson Foods, Inc. Class A

86,500

729,195

 

3,054,585

Household Products - 0.6%

Procter & Gamble Co.

55,400

2,668,618

Common Stocks - continued

Shares

Value

CONSUMER STAPLES - continued

Tobacco - 0.6%

British American Tobacco PLC (United Kingdom)

55,300

$ 1,413,343

Philip Morris International, Inc.

44,000

1,472,680

 

2,886,023

TOTAL CONSUMER STAPLES

13,881,832

ENERGY - 8.7%

Energy Equipment & Services - 0.8%

National Oilwell Varco, Inc. (a)

80,300

2,146,419

Noble Corp.

56,250

1,383,188

 

3,529,607

Oil, Gas & Consumable Fuels - 7.9%

Chesapeake Energy Corp.

90,800

1,420,112

Chevron Corp.

111,300

6,757,023

ConocoPhillips

81,200

3,032,820

Exxon Mobil Corp.

266,340

18,084,475

Foundation Coal Holdings, Inc.

72,700

1,169,016

Noble Energy, Inc.

35,000

1,593,900

Range Resources Corp.

34,000

1,209,380

Southwestern Energy Co. (a)

75,800

2,180,766

Ultra Petroleum Corp. (a)

38,500

1,352,890

 

36,800,382

TOTAL ENERGY

40,329,989

FINANCIALS - 20.0%

Capital Markets - 2.0%

Bank of New York Mellon Corp.

95,139

2,109,232

Charles Schwab Corp.

87,500

1,112,125

Goldman Sachs Group, Inc.

34,000

3,096,720

Morgan Stanley

141,200

2,759,048

 

9,077,125

Commercial Banks - 2.3%

Comerica, Inc.

46,700

700,967

KeyCorp

188,700

1,322,787

Pacific Continental Corp.

35,500

399,020

PacWest Bancorp

61,800

845,424

PNC Financial Services Group, Inc.

34,300

937,762

TCF Financial Corp.

63,600

779,736

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Commercial Banks - continued

U.S. Bancorp, Delaware

110,700

$ 1,584,117

Wells Fargo & Co.

336,500

4,071,650

 

10,641,463

Diversified Financial Services - 2.2%

Bank of America Corp.

553,569

2,186,598

Citigroup, Inc.

526,300

789,450

JPMorgan Chase & Co.

317,740

7,260,359

 

10,236,407

Insurance - 2.4%

ACE Ltd.

31,900

1,164,669

Axis Capital Holdings Ltd.

82,918

1,855,705

Endurance Specialty Holdings Ltd.

71,500

1,599,455

Everest Re Group Ltd.

51,700

3,367,221

MetLife, Inc.

25,798

476,231

Reinsurance Group of America, Inc.

9,761

265,499

RenaissanceRe Holdings Ltd.

28,800

1,296,864

The Travelers Companies, Inc.

34,000

1,229,100

 

11,254,744

Real Estate Investment Trusts - 10.5%

Alexandria Real Estate Equities, Inc.

32,800

1,310,688

American Campus Communities, Inc.

34,000

582,080

Apartment Investment & Management Co. Class A

153,984

803,796

AvalonBay Communities, Inc.

21,675

919,454

Boston Properties, Inc.

37,314

1,383,976

Camden Property Trust (SBI)

74,400

1,397,976

CBL & Associates Properties, Inc.

233,700

724,470

Corporate Office Properties Trust (SBI)

85,400

2,135,000

Developers Diversified Realty Corp.

169,500

500,025

DiamondRock Hospitality Co.

225,800

697,722

Digital Realty Trust, Inc.

86,900

2,597,441

Duke Realty LP

100,200

691,380

Equity Residential (SBI)

96,180

1,692,768

HCP, Inc.

74,100

1,353,807

Healthcare Realty Trust, Inc.

115,600

1,675,044

Highwoods Properties, Inc. (SBI)

124,500

2,351,805

Home Properties, Inc. (f)

52,400

1,390,696

Host Hotels & Resorts, Inc.

92,845

343,527

Inland Real Estate Corp.

130,900

1,021,020

Kilroy Realty Corp.

26,300

489,443

Kimco Realty Corp.

105,538

934,011

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Real Estate Investment Trusts - continued

LaSalle Hotel Properties (SBI)

89,700

$ 477,204

Omega Healthcare Investors, Inc.

46,500

610,545

Plum Creek Timber Co., Inc.

43,500

1,141,005

Potlatch Corp.

59,830

1,362,329

ProLogis Trust

268,165

1,552,675

Public Storage

58,036

3,219,837

Rayonier, Inc.

30,120

801,192

Regency Centers Corp.

53,500

1,443,430

Simon Property Group, Inc.

103,910

3,439,421

SL Green Realty Corp.

91,800

1,066,716

Sunstone Hotel Investors, Inc.

364,256

797,721

Tanger Factory Outlet Centers, Inc. (f)

31,400

866,640

The Macerich Co. (f)

73,700

841,654

UDR, Inc.

76,000

601,160

Ventas, Inc.

121,300

2,616,441

Vornado Realty Trust

88,950

2,911,334

Westfield Group unit

4,986

33,436

 

48,778,869

Real Estate Management & Development - 0.5%

Brookfield Properties Corp.

88,800

439,561

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

373,600

1,079,704

Forestar Group, Inc. (a)

98,300

739,216

 

2,258,481

Thrifts & Mortgage Finance - 0.1%

Washington Federal, Inc.

63,185

719,677

TOTAL FINANCIALS

92,966,766

HEALTH CARE - 6.8%

Biotechnology - 0.7%

Amgen, Inc. (a)

51,700

2,529,681

Biogen Idec, Inc. (a)

16,900

778,076

 

3,307,757

Health Care Equipment & Supplies - 1.1%

Baxter International, Inc.

30,000

1,527,300

C.R. Bard, Inc.

15,088

1,210,963

Covidien Ltd.

55,582

1,760,282

Hospira, Inc. (a)

25,900

600,880

 

5,099,425

Common Stocks - continued

Shares

Value

HEALTH CARE - continued

Health Care Providers & Services - 0.7%

AmerisourceBergen Corp.

23,700

$ 752,712

Capital Senior Living Corp. (a)

10,500

30,450

Emeritus Corp. (a)

124,401

835,975

Medco Health Solutions, Inc. (a)

26,370

1,070,095

Universal Health Services, Inc. Class B

18,600

685,038

 

3,374,270

Pharmaceuticals - 4.3%

Johnson & Johnson

79,400

3,970,000

Merck & Co., Inc.

121,900

2,949,980

Pfizer, Inc.

555,800

6,841,898

Schering-Plough Corp.

82,900

1,441,631

Teva Pharmaceutical Industries Ltd. sponsored ADR

27,700

1,234,866

Wyeth

79,400

3,241,108

 

19,679,483

TOTAL HEALTH CARE

31,460,935

INDUSTRIALS - 2.6%

Aerospace & Defense - 0.8%

Heico Corp. Class A

16,414

327,788

Lockheed Martin Corp.

9,500

599,545

Northrop Grumman Corp.

31,700

1,184,312

Raytheon Co.

21,000

839,370

Stanley, Inc. (a)

20,600

638,806

 

3,589,821

Airlines - 0.1%

AirTran Holdings, Inc. (a)

57,521

171,988

Delta Air Lines, Inc. (a)

57,375

288,596

US Airways Group, Inc. (a)

36,500

104,025

 

564,609

Building Products - 0.3%

Masco Corp.

75,900

390,885

Owens Corning (a)

111,900

934,365

 

1,325,250

Commercial Services & Supplies - 0.4%

R.R. Donnelley & Sons Co.

55,400

431,566

Republic Services, Inc.

80,470

1,601,353

 

2,032,919

Common Stocks - continued

Shares

Value

INDUSTRIALS - continued

Machinery - 0.3%

Cummins, Inc.

31,100

$ 646,880

PACCAR, Inc.

33,200

832,324

 

1,479,204

Professional Services - 0.1%

Equifax, Inc.

25,700

552,550

Road & Rail - 0.5%

Con-way, Inc.

58,594

885,355

Ryder System, Inc.

17,400

397,764

Union Pacific Corp.

22,400

840,448

 

2,123,567

Trading Companies & Distributors - 0.1%

Beacon Roofing Supply, Inc. (a)

21,500

235,855

TOTAL INDUSTRIALS

11,903,775

INFORMATION TECHNOLOGY - 6.4%

Communications Equipment - 0.6%

Cisco Systems, Inc. (a)

83,300

1,213,681

Juniper Networks, Inc. (a)

116,700

1,658,307

 

2,871,988

Computers & Peripherals - 0.4%

International Business Machines Corp.

14,400

1,325,232

NCR Corp. (a)

87,900

696,168

 

2,021,400

Electronic Equipment & Components - 1.6%

Agilent Technologies, Inc. (a)

12,500

173,375

Amphenol Corp. Class A

124,600

3,167,332

Arrow Electronics, Inc. (a)

72,233

1,201,235

Avnet, Inc. (a)

67,700

1,169,179

Flextronics International Ltd. (a)

105,400

217,124

Ingram Micro, Inc. Class A (a)

89,350

973,022

Tyco Electronics Ltd.

33,325

315,921

 

7,217,188

Internet Software & Services - 0.3%

VeriSign, Inc. (a)

72,400

1,399,492

IT Services - 1.4%

Fidelity National Information Services, Inc.

43,000

752,500

Lender Processing Services, Inc.

75,182

1,969,017

NCI, Inc. Class A (a)

71,340

1,940,448

Common Stocks - continued

Shares

Value

INFORMATION TECHNOLOGY - continued

IT Services - continued

The Western Union Co.

37,400

$ 417,384

Visa, Inc.

26,700

1,514,157

 

6,593,506

Semiconductors & Semiconductor Equipment - 2.1%

Analog Devices, Inc.

42,600

794,064

Applied Materials, Inc.

92,500

851,925

ASML Holding NV (NY Shares)

55,500

839,715

Intel Corp.

108,100

1,377,194

Lam Research Corp. (a)

43,395

848,806

ON Semiconductor Corp. (a)

379,300

1,388,238

Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR

116,333

877,151

Texas Instruments, Inc.

100,800

1,446,480

Varian Semiconductor Equipment Associates, Inc. (a)

65,200

1,189,900

 

9,613,473

TOTAL INFORMATION TECHNOLOGY

29,717,047

MATERIALS - 1.3%

Chemicals - 0.6%

Albemarle Corp.

51,856

1,003,414

Arkema

16,100

214,571

Celanese Corp. Class A

82,100

701,134

Lubrizol Corp.

15,919

437,613

Solutia, Inc. (a)

98,620

369,825

 

2,726,557

Containers & Packaging - 0.4%

Pactiv Corp. (a)

38,100

603,123

Rock-Tenn Co. Class A

16,900

466,609

Temple-Inland, Inc.

123,711

587,627

 

1,657,359

Metals & Mining - 0.3%

Barrick Gold Corp.

10,600

320,379

Freeport-McMoRan Copper & Gold, Inc. Class B

10,600

322,452

Goldcorp, Inc.

10,700

310,869

Kinross Gold Corp.

22,100

349,528

Newmont Mining Corp.

8,000

333,040

 

1,636,268

TOTAL MATERIALS

6,020,184

Common Stocks - continued

Shares

Value

TELECOMMUNICATION SERVICES - 2.3%

Diversified Telecommunication Services - 2.3%

AT&T, Inc.

271,115

$ 6,444,404

Verizon Communications, Inc.

148,200

4,228,146

 

10,672,550

UTILITIES - 2.6%

Electric Utilities - 1.2%

Entergy Corp.

21,300

1,435,407

Exelon Corp.

56,500

2,667,930

FirstEnergy Corp.

38,100

1,621,536

 

5,724,873

Multi-Utilities - 1.4%

Sempra Energy

59,700

2,481,729

Wisconsin Energy Corp.

99,700

3,970,054

 

6,451,783

TOTAL UTILITIES

12,176,656

TOTAL COMMON STOCKS

(Cost $420,322,901)

274,485,322

Preferred Stocks - 21.2%

 

 

 

 

Convertible Preferred Stocks - 6.7%

CONSUMER DISCRETIONARY - 0.2%

Hotels, Restaurants & Leisure - 0.0%

Six Flags, Inc. 7.25% PIERS

2,100

1,903

Media - 0.2%

Emmis Communications Corp. Series A, 6.25%

10,100

19,998

Interpublic Group of Companies, Inc. 5.25%

2,500

896,875

 

916,873

TOTAL CONSUMER DISCRETIONARY

918,776

CONSUMER STAPLES - 0.5%

Food Products - 0.5%

Archer Daniels Midland Co. 6.25%

26,300

929,442

Preferred Stocks - continued

Shares

Value

Convertible Preferred Stocks - continued

CONSUMER STAPLES - continued

Food Products - continued

Bunge Ltd.:

4.875%

700

$ 44,442

5.125%

2,800

1,286,494

 

2,260,378

ENERGY - 1.0%

Oil, Gas & Consumable Fuels - 1.0%

Chesapeake Energy Corp. 4.50%

20,500

1,191,563

El Paso Corp.:

4.99% (g)

3,000

1,845,090

4.99%

2,200

1,353,066

 

4,389,719

FINANCIALS - 1.1%

Commercial Banks - 0.5%

KeyCorp Series A, 7.75%

12,100

744,150

Wells Fargo & Co. 7.50%

3,439

1,581,940

 

2,326,090

Diversified Financial Services - 0.5%

Bank of America Corp. Series L, 7.25%

3,582

1,271,610

Carriage Services Capital Trust 7.00% TIDES

45,000

1,125,000

CIT Group, Inc. Series C, 8.75%

8,000

119,360

 

2,515,970

Insurance - 0.0%

American International Group, Inc. Series A, 8.50%

13,300

61,313

Real Estate Investment Trusts - 0.1%

HRPT Properties Trust 6.50%

34,390

318,383

TOTAL FINANCIALS

5,221,756

HEALTH CARE - 0.6%

Health Care Providers & Services - 0.2%

HealthSouth Corp. Series A 6.50%

2,800

1,093,708

Pharmaceuticals - 0.4%

Mylan, Inc. 6.50%

2,115

1,718,438

TOTAL HEALTH CARE

2,812,146

Preferred Stocks - continued

Shares

Value

Convertible Preferred Stocks - continued

INDUSTRIALS - 0.3%

Commercial Services & Supplies - 0.1%

Avery Dennison Corp. 7.875%

14,800

$ 381,840

Road & Rail - 0.2%

Kansas City Southern 5.125%

1,645

1,124,325

TOTAL INDUSTRIALS

1,506,165

INFORMATION TECHNOLOGY - 0.0%

Communications Equipment - 0.0%

Lucent Technologies Capital Trust I 77.50%

600

150,000

MATERIALS - 1.3%

Chemicals - 0.2%

Celanese Corp. 4.25%

86,600

1,085,098

Metals & Mining - 1.1%

Freeport-McMoRan Copper & Gold, Inc.:

5.50%

3,302

2,526,813

6.75%

48,000

2,596,176

 

5,122,989

TOTAL MATERIALS

6,208,087

TELECOMMUNICATION SERVICES - 0.1%

Wireless Telecommunication Services - 0.1%

Crown Castle International Corp. 6.25% PIERS

7,200

309,600

UTILITIES - 1.6%

Independent Power Producers & Energy Traders - 0.3%

NRG Energy, Inc. 4.00% (g)

1,650

1,563,375

Multi-Utilities - 1.3%

CMS Energy Corp. 4.50%

100,000

5,874,000

TOTAL UTILITIES

7,437,375

TOTAL CONVERTIBLE PREFERRED STOCKS

31,214,002

Nonconvertible Preferred Stocks - 14.5%

CONSUMER DISCRETIONARY - 0.1%

Media - 0.1%

CBS Corp. 6.75%

40,000

481,200

Preferred Stocks - continued

Shares

Value

Nonconvertible Preferred Stocks - continued

CONSUMER STAPLES - 0.5%

Food Products - 0.5%

H.J. Heinz Finance Co. 8.00% (g)

30

$ 2,430,000

ENERGY - 0.3%

Oil, Gas & Consumable Fuels - 0.3%

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

19,375

1,472,500

FINANCIALS - 5.5%

Capital Markets - 1.2%

Deutsche Bank Contingent Capital Trust II 6.55%

80,000

697,600

Goldman Sachs Group, Inc.:

Series C, 4.9931%

40,000

506,000

Series D, 4.00%

200,000

2,400,000

Morgan Stanley Capital I Trust 6.60%

120,000

1,701,600

 

5,305,200

Commercial Banks - 1.7%

ABN AMRO Capital Funding Trust V 5.90%

20,000

70,000

ABN Amro Capital Funding Trust VII 6.08%

40,400

144,228

Barclays Bank PLC Series 2

40,000

250,000

BNY Capital V 5.95%

115,000

1,979,150

First Tennessee Bank NA, Memphis 3.90% (g)

5,000

1,000,000

Keycorp Capital IX 6.75%

40,000

417,200

Royal Bank of Scotland Group PLC Series R, 6.125%

40,000

160,000

Santander Finance Preferred SA Unipersonal:

4.00%

40,000

300,000

6.50%

40,000

530,000

6.80%

160,000

1,953,600

USB Capital XII 6.30%

80,000

1,200,000

 

8,004,178

Consumer Finance - 0.0%

SLM Corp. 4.07%

1,200

15,420

Diversified Financial Services - 0.9%

Bank of America Corp.:

3.00%

70,000

309,400

4.00%

97,700

505,109

Series D, 6.204%

20,000

146,000

Series E, 4.00%

80,000

448,000

Series H, 8.20%

80,000

699,200

Preferred Stocks - continued

Shares

Value

Nonconvertible Preferred Stocks - continued

FINANCIALS - continued

Diversified Financial Services - continued

Deutsche Bank Capital Funding Trust VIII 6.375%

80,000

$ 704,000

General Electric Capital Corp. 6.05%

80,000

1,356,000

 

4,167,709

Insurance - 0.1%

MetLife, Inc. Series A, 4.39%

40,000

424,000

Real Estate Investment Trusts - 1.2%

Apartment Investment & Management Co. Series V, 8.00%

79,000

850,040

Hospitality Properties Trust:

Series B, 8.875%

125,000

1,525,000

Series C, 7.00%

100,000

1,009,000

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

20,000

342,000

Public Storage Series M, 6.625%

80,000

1,373,600

Vornado Realty Trust Series E, 7.00%

40,000

558,800

 

5,658,440

Thrifts & Mortgage Finance - 0.4%

Fannie Mae:

Series E, 5.10%

27,562

6,891

Series H, 5.81%

71,200

119,616

Series I, 5.375%

5,000

6,750

Series L, 5.125%

140,900

112,720

Series N, 5.50%

92,650

74,120

Series O, 7.00%

42,200

37,136

Series R, 7.65%

40,000

28,000

Series T, 8.25%

40,000

30,000

Freddie Mac:

5.30%

40,000

14,000

Series F, 5.00%

68,500

32,880

Series H, 5.10%

10,300

4,223

Series K, 5.79%

25,200

12,600

Series O, 5.81%

19,500

15,600

Series R, 5.70%

117,000

76,050

Series S, 4.00%

10,000

5,000

Series U, 5.90%

40,000

14,000

Series V, 5.57%

566,000

181,120

Preferred Stocks - continued

Shares

Value

Nonconvertible Preferred Stocks - continued

FINANCIALS - continued

Thrifts & Mortgage Finance - continued

Freddie Mac: - continued

Series W, 5.66%

161,600

$ 54,944

Sovereign Bancorp, Inc. Series C, 7.30%

80,000

887,200

 

1,712,850

TOTAL FINANCIALS

25,287,797

MATERIALS - 0.3%

Chemicals - 0.2%

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

9,900

714,285

Metals & Mining - 0.1%

Alcoa, Inc. 3.75%

6,400

393,600

TOTAL MATERIALS

1,107,885

TELECOMMUNICATION SERVICES - 1.0%

Diversified Telecommunication Services - 1.0%

AT&T, Inc. 6.375%

181,800

4,574,088

UTILITIES - 6.8%

Electric Utilities - 5.9%

Alabama Power Co.:

4.60%

2,000

80,000

5.20%

84,600

1,789,290

5.625%

80,000

1,540,000

6.45%

80,000

1,640,000

Baltimore Gas & Electric Co. Series 1993, 6.70%

10,000

880,000

Duquesne Light Co. 6.50%

106,050

3,711,750

FPL Group Capital Trust I 5.875%

20,000

486,800

FPL Group Capital, Inc. Series E, 7.45%

80,000

2,052,800

Mid-American Energy Co. 4.40%

5,000

370,625

Pacific Gas & Electric Co.:

Series A, 5.00%

16,900

363,350

Series B, 5.50%

61,900

1,509,741

Series D 5.00%

69,200

1,522,400

PPL Electric Utilities Corp. 6.25%

230,000

4,980,949

Southern California Edison Co.:

6.125%

35,000

2,730,000

Series B, 4.08%

27,271

477,788

Preferred Stocks - continued

Shares

Value

Nonconvertible Preferred Stocks - continued

UTILITIES - continued

Electric Utilities - continued

Southern California Edison Co.: - continued

Series C:

4.24%

94,600

$ 1,702,800

6.00%

20,000

1,100,000

Series D, 4.32%

15,000

276,000

 

27,214,293

Independent Power Producers & Energy Traders - 0.0%

Heco Capital Trust III 6.50%

12,000

276,000

Multi-Utilities - 0.9%

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

28,705

2,443,944

San Diego Gas & Electric Co. 1.70%

67,548

1,661,262

 

4,105,206

TOTAL UTILITIES

31,595,499

TOTAL NONCONVERTIBLE PREFERRED STOCKS

66,948,969

TOTAL PREFERRED STOCKS

(Cost $204,913,757)

98,162,971

Preferred Securities - 0.3%

Principal Amount

 

FINANCIALS - 0.3%

Commercial Banks - 0.3%

PNC Preferred Funding Trust I 6.517% 12/31/49 (g)(h)

$ 3,000,000

1,241,274

SunTrust Preferred Capital I 5.853% 12/15/49 (h)

1,000,000

212,221

 

1,453,495

TOTAL PREFERRED SECURITIES

(Cost $4,000,000)

1,453,495

Money Market Funds - 1.4%

Shares

Value

Fidelity Cash Central Fund, 0.59% (b)

4,927,654

$ 4,927,654

Fidelity Securities Lending Cash Central Fund, 0.66% (b)(c)

1,775,400

1,775,400

TOTAL MONEY MARKET FUNDS

(Cost $6,703,054)

6,703,054

TOTAL INVESTMENT PORTFOLIO - 99.8%

(Cost $739,811,762)

462,907,488

NET OTHER ASSETS - 0.2%

958,397

NET ASSETS - 100%

$ 463,865,885

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) Non-income producing - Issuer is in default.

(e) 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.

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

(g) 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 $22,781,650 or 4.9% of net assets.

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

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

$ 22,382

Fidelity Securities Lending Cash Central Fund

3,355

Total

$ 25,737

Other Information

The following is a summary of the inputs used, as of February 28, 2009, 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 tables 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

$ 462,907,488

$ 325,551,014

$ 136,256,474

$ 1,100,000

The following is a reconciliation of assets for which Level 3 inputs were used in determining value:

 

Investments in Securities

Beginning Balance

$ 2,000,000

Total Realized Gain (Loss)

(78,312)

Total Unrealized Gain (Loss)

(1,047,800)

Cost of Purchases

-

Proceeds of Sales

(231,688)

Amortization/Accretion

-

Transfer in/out of Level 3

457,800

Ending Balance

$ 1,100,000

The information used in the above reconciliation represents fiscal year to date activity for any Investment Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period.

Income Tax Information

At February 28, 2009, the aggregate cost of investment securities for income tax purposes was $755,197,579. Net unrealized depreciation aggregated $292,290,091, of which $7,473,377 related to appreciated investment securities and $299,763,468 related to depreciated investment securities.

Investment Valuation

Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Security transactions are accounted for as of trade date. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.

Debt securities, including restricted securities, are valued by independent pricing services or by dealers who make markets in such securities. Certain of the Fund's securities are valued at period end by a single source or dealer. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as available 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. 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. Actual prices received at disposition may differ.

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 net asset value calculation under these procedures may differ from published prices for the same securities.

The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157). 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:

April 29, 2009

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:

April 29, 2009

By:

/s/Christine Reynolds

 

Christine Reynolds

 

Chief Financial Officer

 

 

Date:

April 29, 2009