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 811-1796

Fidelity Destiny Portfolios
 (Exact name of registrant as specified in charter)

245 Summer St., Boston, Massachusetts 02210
 (Address of principal executive offices)       (Zip code)

Scott C. Goebel, Secretary

245 Summer St.

Boston, Massachusetts 02210
(Name and address of agent for service)

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

Date of fiscal year end:

September 30

 

 

Date of reporting period:

December 31, 2014

Item 1. Schedule of Investments

Quarterly Holdings Report

for

Fidelity Advisor® Capital Development Fund

December 31, 2014 

1.827902.109

ADESII-QTLY-0215

Investments December 31, 2014 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 98.5%

Shares

Value

CONSUMER DISCRETIONARY - 10.0%

Auto Components - 0.1%

BorgWarner, Inc.

75,600

$ 4,154,220

Diversified Consumer Services - 0.5%

H&R Block, Inc.

398,200

13,411,376

Hotels, Restaurants & Leisure - 1.1%

Darden Restaurants, Inc.

49,000

2,872,870

Las Vegas Sands Corp.

123,400

7,176,944

Yum! Brands, Inc.

325,524

23,714,423

 

33,764,237

Household Durables - 0.1%

Taylor Morrison Home Corp. (a)

169,900

3,209,411

Internet & Catalog Retail - 0.0%

ASOS PLC (a)

12,900

517,929

Media - 4.1%

Comcast Corp. Class A

991,500

57,516,915

Liberty Global PLC Class A (a)

108,700

5,457,284

Sinclair Broadcast Group, Inc.
Class A (d)

248,500

6,798,960

Starz Series A (a)

217,800

6,468,660

Time Warner, Inc.

438,610

37,466,066

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

152,800

11,498,200

 

125,206,085

Multiline Retail - 2.5%

Dollar General Corp. (a)

60,300

4,263,210

Target Corp.

942,050

71,511,016

 

75,774,226

Specialty Retail - 1.6%

Lowe's Companies, Inc.

594,600

40,908,480

Sally Beauty Holdings, Inc. (a)

239,800

7,371,452

 

48,279,932

TOTAL CONSUMER DISCRETIONARY

304,317,416

CONSUMER STAPLES - 9.9%

Beverages - 2.7%

Diageo PLC

499,655

14,313,650

Monster Beverage Corp. (a)

42,200

4,572,370

PepsiCo, Inc.

114,900

10,864,944

SABMiller PLC

201,200

10,539,771

The Coca-Cola Co.

974,600

41,147,612

 

81,438,347

Food & Staples Retailing - 1.3%

CVS Health Corp.

186,500

17,961,815

Walgreens Boots Alliance, Inc.

211,200

16,093,440

Whole Foods Market, Inc.

100,800

5,082,336

 

39,137,591

Food Products - 0.3%

Kellogg Co.

142,200

9,305,568

Household Products - 1.8%

Procter & Gamble Co.

620,200

56,494,018

 

Shares

Value

Tobacco - 3.8%

British American Tobacco PLC sponsored ADR

302,164

$ 32,579,322

Lorillard, Inc.

601,124

37,834,745

Philip Morris International, Inc.

324,644

26,442,254

Reynolds American, Inc.

303,800

19,525,226

 

116,381,547

TOTAL CONSUMER STAPLES

302,757,071

ENERGY - 9.2%

Energy Equipment & Services - 1.6%

Cameron International Corp. (a)

63,900

3,191,805

Ensco PLC Class A

302,600

9,062,870

Halliburton Co.

92,200

3,626,226

National Oilwell Varco, Inc.

119,800

7,850,494

Oceaneering International, Inc.

158,500

9,321,385

Schlumberger Ltd.

129,300

11,043,513

U.S. Silica Holdings, Inc. (d)

147,300

3,784,137

 

47,880,430

Oil, Gas & Consumable Fuels - 7.6%

Amyris, Inc. (a)(d)

1,908,302

3,931,102

Anadarko Petroleum Corp.

58,100

4,793,250

Apache Corp.

361,900

22,680,273

BG Group PLC

1,942,398

25,992,589

Cabot Oil & Gas Corp.

169,100

5,007,051

Chevron Corp.

481,927

54,062,571

Cobalt International Energy, Inc. (a)

467,900

4,159,631

Exxon Mobil Corp.

42,200

3,901,390

Imperial Oil Ltd.

437,900

18,864,602

Kinder Morgan Holding Co. LLC

171,800

7,268,858

Markwest Energy Partners LP

125,800

8,452,502

Peabody Energy Corp.

388,900

3,010,086

Suncor Energy, Inc.

1,604,000

50,944,741

The Williams Companies, Inc.

425,358

19,115,589

 

232,184,235

TOTAL ENERGY

280,064,665

FINANCIALS - 19.9%

Banks - 12.4%

Bank of America Corp.

4,058,600

72,608,354

Citigroup, Inc.

1,314,004

71,100,756

Comerica, Inc.

56,400

2,641,776

JPMorgan Chase & Co.

1,986,310

124,303,279

PNC Financial Services Group, Inc.

121,126

11,050,325

Standard Chartered PLC (United Kingdom)

1,282,311

19,246,613

SunTrust Banks, Inc.

655,900

27,482,210

U.S. Bancorp

428,142

19,244,983

Wells Fargo & Co.

537,350

29,457,527

 

377,135,823

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Capital Markets - 4.6%

BlackRock, Inc. Class A

10,400

$ 3,718,624

Charles Schwab Corp.

706,355

21,324,857

E*TRADE Financial Corp. (a)

268,900

6,522,170

FXCM, Inc. Class A (d)

142,600

2,362,882

Goldman Sachs Group, Inc.

13,600

2,636,088

KKR & Co. LP

303,082

7,034,533

Morgan Stanley

773,400

30,007,920

Northern Trust Corp.

225,295

15,184,883

State Street Corp.

547,690

42,993,665

The Blackstone Group LP

289,100

9,780,253

 

141,565,875

Diversified Financial Services - 0.2%

IntercontinentalExchange Group, Inc.

25,500

5,591,895

Insurance - 2.2%

American International Group, Inc.

352,100

19,721,121

Genworth Financial, Inc. Class A (a)

756,300

6,428,550

Lincoln National Corp.

176,200

10,161,454

MetLife, Inc.

498,500

26,963,865

Principal Financial Group, Inc.

67,100

3,485,174

 

66,760,164

Real Estate Management & Development - 0.2%

Realogy Holdings Corp. (a)

131,100

5,832,639

Thrifts & Mortgage Finance - 0.3%

MGIC Investment Corp. (a)

878,525

8,187,853

Radian Group, Inc.

69,100

1,155,352

 

9,343,205

TOTAL FINANCIALS

606,229,601

HEALTH CARE - 11.5%

Biotechnology - 3.0%

Alnylam Pharmaceuticals, Inc. (a)

34,500

3,346,500

Amgen, Inc.

227,415

36,224,935

BioCryst Pharmaceuticals, Inc. (a)(d)

263,800

3,207,808

Biogen Idec, Inc. (a)

15,000

5,091,750

Clovis Oncology, Inc. (a)(d)

199,600

11,177,600

Discovery Laboratories, Inc. (a)(d)

153,912

178,538

Insmed, Inc. (a)

143,200

2,215,304

Intercept Pharmaceuticals, Inc. (a)

137,658

21,474,648

MEI Pharma, Inc. (a)

872,343

3,724,905

Synageva BioPharma Corp. (a)

20,625

1,913,794

XOMA Corp. (a)

351,648

1,262,416

 

89,818,198

Health Care Equipment & Supplies - 2.8%

Abbott Laboratories

202,300

9,107,546

Alere, Inc. (a)

905,500

34,409,000

Boston Scientific Corp. (a)

2,141,651

28,376,876

 

Shares

Value

St. Jude Medical, Inc.

89,600

$ 5,826,688

Zimmer Holdings, Inc.

61,500

6,975,330

 

84,695,440

Health Care Providers & Services - 2.2%

Catamaran Corp. (a)

103,100

5,335,145

China Cord Blood Corp. (a)

280,200

1,266,504

Community Health Systems, Inc. (a)

104,100

5,613,072

Express Scripts Holding Co. (a)

313,600

26,552,512

McKesson Corp.

137,980

28,641,888

 

67,409,121

Health Care Technology - 0.0%

Castlight Health, Inc. Class B (a)

11,700

136,890

Pharmaceuticals - 3.5%

Actavis PLC (a)

51,000

13,127,910

GlaxoSmithKline PLC sponsored ADR

755,900

32,307,166

Jazz Pharmaceuticals PLC (a)

56,000

9,168,880

Johnson & Johnson

123,860

12,952,040

Novartis AG sponsored ADR

72,391

6,707,750

Teva Pharmaceutical Industries Ltd. sponsored ADR

453,250

26,066,408

TherapeuticsMD, Inc. (a)

346,600

1,542,370

Theravance, Inc.

233,500

3,304,025

XenoPort, Inc. (a)

308,708

2,707,369

 

107,883,918

TOTAL HEALTH CARE

349,943,567

INDUSTRIALS - 11.9%

Aerospace & Defense - 1.6%

Honeywell International, Inc.

43,167

4,313,247

KEYW Holding Corp. (a)

120,517

1,250,966

Rolls-Royce Group PLC

366,600

4,971,030

The Boeing Co.

197,400

25,658,052

United Technologies Corp.

99,400

11,431,000

 

47,624,295

Air Freight & Logistics - 2.1%

C.H. Robinson Worldwide, Inc.

78,200

5,856,398

FedEx Corp.

121,600

21,117,056

Hub Group, Inc. Class A (a)

124,000

4,721,920

United Parcel Service, Inc. Class B

293,400

32,617,278

 

64,312,652

Building Products - 0.1%

Lennox International, Inc.

29,800

2,833,086

Commercial Services & Supplies - 0.6%

ADT Corp. (d)

475,200

17,216,496

Electrical Equipment - 0.5%

AMETEK, Inc.

89,300

4,699,859

Hubbell, Inc. Class B

58,818

6,283,527

OSRAM Licht AG

43,601

1,711,771

Vestas Wind Systems A/S (a)

63,600

2,340,648

 

15,035,805

Common Stocks - continued

Shares

Value

INDUSTRIALS - continued

Industrial Conglomerates - 3.1%

Danaher Corp.

127,195

$ 10,901,883

General Electric Co.

3,292,500

83,201,475

 

94,103,358

Machinery - 1.1%

Cummins, Inc.

19,200

2,768,064

Deere & Co.

129,500

11,456,865

Ingersoll-Rand PLC

90,100

5,711,439

Joy Global, Inc.

69,500

3,233,140

Manitowoc Co., Inc.

80,600

1,781,260

Valmont Industries, Inc.

35,400

4,495,800

WABCO Holdings, Inc. (a)

33,600

3,520,608

 

32,967,176

Professional Services - 0.7%

Acacia Research Corp.

429,068

7,268,412

Bureau Veritas SA

207,709

4,602,004

Exova Group Ltd. PLC (a)

314,000

783,041

Verisk Analytics, Inc. (a)

159,300

10,203,165

 

22,856,622

Road & Rail - 2.0%

CSX Corp.

915,700

33,175,811

J.B. Hunt Transport Services, Inc.

141,700

11,938,225

Kansas City Southern

45,100

5,503,553

Norfolk Southern Corp.

97,800

10,719,858

 

61,337,447

Trading Companies & Distributors - 0.1%

HD Supply Holdings, Inc. (a)

86,200

2,542,038

TOTAL INDUSTRIALS

360,828,975

INFORMATION TECHNOLOGY - 21.3%

Communications Equipment - 2.7%

Cisco Systems, Inc.

1,727,700

48,055,976

QUALCOMM, Inc.

446,000

33,151,180

 

81,207,156

Internet Software & Services - 3.8%

Cornerstone OnDemand, Inc. (a)

157,400

5,540,480

Google, Inc.:

Class A (a)

82,500

43,779,450

Class C (a)

66,000

34,742,400

Twitter, Inc. (a)

117,200

4,203,964

Yahoo!, Inc. (a)

540,959

27,323,839

 

115,590,133

IT Services - 4.9%

Cognizant Technology Solutions Corp. Class A (a)

381,800

20,105,588

Fidelity National Information Services, Inc.

93,200

5,797,040

IBM Corp.

111,500

17,889,060

MasterCard, Inc. Class A

344,100

29,647,656

 

Shares

Value

Paychex, Inc.

458,100

$ 21,150,477

The Western Union Co.

173,400

3,105,594

Unisys Corp. (a)

477,099

14,064,879

Visa, Inc. Class A

136,300

35,737,860

 

147,498,154

Semiconductors & Semiconductor Equipment - 2.0%

Applied Materials, Inc.

947,600

23,614,192

Broadcom Corp. Class A

816,936

35,397,837

Xilinx, Inc.

65,000

2,813,850

 

61,825,879

Software - 4.2%

Adobe Systems, Inc. (a)

151,300

10,999,510

Autodesk, Inc. (a)

152,700

9,171,162

Intuit, Inc.

11,600

1,069,404

Microsoft Corp.

1,659,900

77,102,355

Oracle Corp.

356,850

16,047,545

Parametric Technology Corp. (a)

151,897

5,567,025

salesforce.com, Inc. (a)

145,900

8,653,329

 

128,610,330

Technology Hardware, Storage & Peripherals - 3.7%

Apple, Inc.

956,700

105,600,546

First Data Holdings, Inc. Class B (e)

2,081,477

5,724,062

Samsung Electronics Co. Ltd.

1,767

2,135,030

 

113,459,638

TOTAL INFORMATION TECHNOLOGY

648,191,290

MATERIALS - 3.1%

Chemicals - 2.5%

Airgas, Inc.

129,090

14,868,586

Balchem Corp.

29,200

1,945,888

E.I. du Pont de Nemours & Co.

101,547

7,508,385

FMC Corp.

154,000

8,782,620

Intrepid Potash, Inc. (a)(d)

158,340

2,197,759

LyondellBasell Industries NV Class A

4,100

325,499

Monsanto Co.

235,000

28,075,450

Potash Corp. of Saskatchewan, Inc.

134,200

4,744,013

Syngenta AG (Switzerland)

21,536

6,927,219

 

75,375,419

Containers & Packaging - 0.1%

Rock-Tenn Co. Class A

51,000

3,109,980

Metals & Mining - 0.5%

Freeport-McMoRan, Inc.

623,500

14,564,960

TOTAL MATERIALS

93,050,359

TELECOMMUNICATION SERVICES - 1.6%

Diversified Telecommunication Services - 1.6%

Verizon Communications, Inc.

1,049,906

49,114,603

Common Stocks - continued

Shares

Value

UTILITIES - 0.1%

Independent Power Producers & Renewable Electricity Producers - 0.1%

Dynegy, Inc. (a)

137,000

$ 4,157,950

TOTAL COMMON STOCKS

(Cost $2,572,325,808)

2,998,655,497

Convertible Preferred Stocks - 0.0%

 

 

 

 

CONSUMER DISCRETIONARY - 0.0%

Leisure Products - 0.0%

NJOY, Inc. Series D (e)

(Cost $474,963)

28,061

226,452

Money Market Funds - 2.4%

 

 

 

 

Fidelity Cash Central Fund, 0.13% (b)

44,066,494

44,066,494

Fidelity Securities Lending Cash Central Fund, 0.13% (b)(c)

27,642,234

27,642,234

TOTAL MONEY MARKET FUNDS

(Cost $71,708,728)

71,708,728

TOTAL INVESTMENT PORTFOLIO - 100.9%

(Cost $2,644,509,499)


3,070,590,677

NET OTHER ASSETS (LIABILITIES) - (0.9)%

(26,493,371)

NET ASSETS - 100%

$ 3,044,097,306

Legend

(a) Non-income producing

(b) Affiliated fund that is generally 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. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.

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

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

(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $5,950,514 or 0.2% of net assets.

Additional information on each restricted holding is as follows:

Security

Acquisition Date

Acquisition Cost

First Data Holdings, Inc. Class B

6/26/14

$ 8,325,908

NJOY, Inc. Series D

2/14/14

$ 474,963

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

$ 4,433

Fidelity Securities Lending Cash Central Fund

261,591

Total

$ 266,024

Other Information

The following is a summary of the inputs used, as of December 31, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section at the end of this listing.

Valuation Inputs at Reporting Date:

Description

Total

Level 1

Level 2

Level 3

Investments in Securities:

Equities:

Consumer Discretionary

$ 304,543,868

$ 304,317,416

$ -

$ 226,452

Consumer Staples

302,757,071

288,443,421

14,313,650

-

Energy

280,064,665

254,072,076

25,992,589

-

Financials

606,229,601

606,229,601

-

-

Health Care

349,943,567

349,943,567

-

-

Industrials

360,828,975

359,117,204

1,711,771

-

Information Technology

648,191,290

640,332,198

2,135,030

5,724,062

Materials

93,050,359

86,123,140

6,927,219

-

Telecommunication Services

49,114,603

49,114,603

-

-

Utilities

4,157,950

4,157,950

-

-

Money Market Funds

71,708,728

71,708,728

-

-

Total Investments in Securities:

$ 3,070,590,677

$ 3,013,559,904

$ 51,080,259

$ 5,950,514

Income Tax Information

At December 31, 2014, the cost of investment securities for income tax purposes was $2,650,103,717. Net unrealized appreciation aggregated $420,486,960. of which $527,989,381 related to appreciated investment securities and $107,502,421 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. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations. The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels: Level 1 - quoted prices in active markets for identical investments: Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds etc.): Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available). Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the Fund's investments by major category are as follows:

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

Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.

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® Diversified Stock Fund

December 31, 2014 

1.827901.109

ADESI-QTLY-0215

Investments December 31, 2014 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 96.5%

Shares

Value

CONSUMER DISCRETIONARY - 12.4%

Auto Components - 0.4%

BorgWarner, Inc.

50,000

$ 2,747,500

Gentex Corp.

150,000

5,419,500

 

8,167,000

Automobiles - 0.3%

Toyota Motor Corp. sponsored ADR

50,000

6,274,000

Hotels, Restaurants & Leisure - 2.4%

Bloomin' Brands, Inc. (a)

125,000

3,095,000

Darden Restaurants, Inc.

225,000

13,191,750

Las Vegas Sands Corp.

75,000

4,362,000

McDonald's Corp.

100,000

9,370,000

Texas Roadhouse, Inc. Class A

175,000

5,908,000

Yum! Brands, Inc.

250,000

18,212,500

 

54,139,250

Household Durables - 1.1%

Jarden Corp. (a)

112,500

5,386,500

KB Home

375,000

6,206,250

Taylor Morrison Home Corp. (a)

325,000

6,139,250

Tupperware Brands Corp.

100,000

6,300,000

 

24,032,000

Internet & Catalog Retail - 0.1%

zulily, Inc. Class A (a)(d)

100,000

2,340,000

Leisure Products - 1.2%

Brunswick Corp.

300,000

15,378,000

New Academy Holding Co. LLC unit (a)(e)(f)

60,000

10,234,800

 

25,612,800

Media - 2.8%

CBS Corp. Class B

75,000

4,150,500

Comcast Corp. Class A (special) (non-vtg.)

800,000

46,052,000

Sinclair Broadcast Group, Inc. Class A (d)

300,000

8,208,000

Starz Series A (a)

100,000

2,970,000

 

61,380,500

Multiline Retail - 1.8%

Dollar General Corp. (a)

250,000

17,675,000

Target Corp.

300,000

22,773,000

 

40,448,000

Specialty Retail - 1.4%

Cabela's, Inc. Class A (a)

25,000

1,317,750

Fast Retailing Co. Ltd.

17,500

6,368,165

Lumber Liquidators Holdings, Inc. (a)

50,000

3,315,500

Sally Beauty Holdings, Inc. (a)

175,000

5,379,500

TJX Companies, Inc.

225,000

15,430,500

 

31,811,415

Textiles, Apparel & Luxury Goods - 0.9%

Arezzo Industria e Comercio SA

500,000

5,071,101

Brunello Cucinelli SpA (d)

201,500

4,518,079

 

Shares

Value

Japan Tobacco, Inc.

300,000

$ 8,256,836

Michael Kors Holdings Ltd. (a)

30,000

2,253,000

 

20,099,016

TOTAL CONSUMER DISCRETIONARY

274,303,981

CONSUMER STAPLES - 7.9%

Beverages - 1.5%

Molson Coors Brewing Co. Class B

100,000

7,452,000

PepsiCo, Inc.

100,000

9,456,000

The Coca-Cola Co.

383,300

16,182,926

 

33,090,926

Food & Staples Retailing - 1.9%

CVS Health Corp.

300,000

28,893,000

Whole Foods Market, Inc.

260,000

13,109,200

 

42,002,200

Food Products - 0.7%

Amira Nature Foods Ltd. (a)(d)

267,000

3,831,450

Kellogg Co.

175,000

11,452,000

 

15,283,450

Household Products - 2.2%

Procter & Gamble Co.

525,000

47,822,250

Tobacco - 1.6%

British American Tobacco PLC sponsored ADR

100,000

10,782,000

Lorillard, Inc.

200,000

12,588,000

Philip Morris International, Inc.

150,000

12,217,500

 

35,587,500

TOTAL CONSUMER STAPLES

173,786,326

ENERGY - 8.7%

Energy Equipment & Services - 1.9%

Ensco PLC Class A

400,000

11,980,000

National Oilwell Varco, Inc.

225,000

14,744,250

Oceaneering International, Inc.

50,000

2,940,500

Schlumberger Ltd.

100,000

8,541,000

U.S. Silica Holdings, Inc. (d)

150,000

3,853,500

 

42,059,250

Oil, Gas & Consumable Fuels - 6.8%

Anadarko Petroleum Corp.

45,000

3,712,500

Apache Corp.

150,000

9,400,500

Cabot Oil & Gas Corp.

175,000

5,181,750

Cameco Corp. (d)

250,000

4,099,243

Chevron Corp.

375,000

42,067,500

Cloud Peak Energy, Inc. (a)

125,000

1,147,500

CONSOL Energy, Inc.

475,000

16,059,750

Foresight Energy LP

126,000

2,125,620

Peabody Energy Corp. (d)

525,000

4,063,500

QEP Resources, Inc.

125,000

2,527,500

Common Stocks - continued

Shares

Value

ENERGY - continued

Oil, Gas & Consumable Fuels - continued

Suncor Energy, Inc.

1,250,000

$ 39,701,326

The Williams Companies, Inc.

437,500

19,661,250

 

149,747,939

TOTAL ENERGY

191,807,189

FINANCIALS - 16.4%

Banks - 5.4%

Bank of America Corp.

1,500,000

26,835,000

FirstMerit Corp.

200,000

3,778,000

JPMorgan Chase & Co.

725,000

45,370,500

Standard Chartered PLC (United Kingdom)

475,000

7,129,426

SunTrust Banks, Inc.

275,000

11,522,500

Wells Fargo & Co.

425,000

23,298,500

 

117,933,926

Capital Markets - 5.3%

Apollo Global Management LLC Class A

300,000

7,074,000

KKR & Co. LP

1,210,000

28,084,100

Morgan Stanley

662,500

25,705,000

State Street Corp.

275,000

21,587,500

The Blackstone Group LP

1,000,000

33,830,000

Uranium Participation Corp. (a)

225,000

997,375

 

117,277,975

Diversified Financial Services - 0.5%

KKR Renaissance Co-Invest LP unit (a)(f)

50,000

10,711,000

Insurance - 3.7%

Allied World Assurance Co.

300,600

11,398,752

American International Group, Inc.

250,000

14,002,500

Brasil Insurance Participacoes e Administracao SA

1,000,000

1,279,061

MetLife, Inc.

400,000

21,636,000

The Chubb Corp.

200,000

20,694,000

The Travelers Companies, Inc.

125,000

13,231,250

 

82,241,563

Thrifts & Mortgage Finance - 1.5%

Radian Group, Inc. (d)

2,000,190

33,443,177

TOTAL FINANCIALS

361,607,641

HEALTH CARE - 10.2%

Biotechnology - 2.6%

Alnylam Pharmaceuticals, Inc. (a)

30,000

2,910,000

Amgen, Inc.

150,000

23,893,500

Biogen Idec, Inc. (a)

25,000

8,486,250

Clovis Oncology, Inc. (a)

75,000

4,200,000

Gilead Sciences, Inc. (a)

125,000

11,782,500

Infinity Pharmaceuticals, Inc. (a)

225,000

3,800,250

 

Shares

Value

Intercept Pharmaceuticals, Inc. (a)

11,400

$ 1,778,400

MEI Pharma, Inc. (a)

450,000

1,921,500

 

58,772,400

Health Care Equipment & Supplies - 1.5%

Baxter International, Inc.

90,000

6,596,100

Boston Scientific Corp. (a)

650,000

8,612,500

Medtronic, Inc.

150,000

10,830,000

St. Jude Medical, Inc.

100,000

6,503,000

 

32,541,600

Health Care Providers & Services - 2.8%

Catamaran Corp. (a)

250,000

12,936,822

China Cord Blood Corp. (a)

675,000

3,051,000

Community Health Systems, Inc. (a)

90,000

4,852,800

Express Scripts Holding Co. (a)

200,000

16,934,000

HCA Holdings, Inc. (a)

100,000

7,339,000

McKesson Corp.

40,000

8,303,200

Qualicorp SA (a)

500,000

5,229,102

Universal American Spin Corp. (a)

300,000

2,784,000

 

61,429,924

Health Care Technology - 0.6%

Allscripts Healthcare Solutions, Inc. (a)

250,000

3,192,500

MedAssets, Inc. (a)

474,974

9,385,486

 

12,577,986

Pharmaceuticals - 2.7%

Astellas Pharma, Inc.

200,000

2,784,421

Dermira, Inc.

200,000

3,622,000

GlaxoSmithKline PLC sponsored ADR

400,000

17,096,000

Jazz Pharmaceuticals PLC (a)

51,200

8,382,976

Mylan, Inc. (a)

75,000

4,227,750

Pfizer, Inc.

550,000

17,132,500

The Medicines Company (a)

150,000

4,150,500

TherapeuticsMD, Inc. (a)

675,000

3,003,750

 

60,399,897

TOTAL HEALTH CARE

225,721,807

INDUSTRIALS - 11.4%

Aerospace & Defense - 1.4%

The Boeing Co.

125,000

16,247,500

United Technologies Corp.

125,000

14,375,000

 

30,622,500

Air Freight & Logistics - 2.4%

C.H. Robinson Worldwide, Inc.

55,000

4,118,950

Expeditors International of Washington, Inc.

150,000

6,691,500

FedEx Corp.

70,000

12,156,200

PostNL NV (a)

1,500,000

5,626,733

United Parcel Service, Inc. Class B

225,000

25,013,250

 

53,606,633

Common Stocks - continued

Shares

Value

INDUSTRIALS - continued

Airlines - 0.4%

American Airlines Group, Inc.

125,000

$ 6,703,750

Copa Holdings SA Class A

19,906

2,063,058

 

8,766,808

Construction & Engineering - 0.6%

Balfour Beatty PLC

500,000

1,652,116

Jacobs Engineering Group, Inc. (a)

225,000

10,055,250

 

11,707,366

Electrical Equipment - 0.7%

AMETEK, Inc.

100,000

5,263,000

Babcock & Wilcox Co.

66,353

2,010,496

Eaton Corp. PLC

125,000

8,495,000

 

15,768,496

Industrial Conglomerates - 2.6%

Danaher Corp.

175,000

14,999,250

General Electric Co.

1,700,000

42,959,000

 

57,958,250

Machinery - 1.1%

Cummins, Inc.

50,000

7,208,500

Deere & Co.

125,000

11,058,750

Valmont Industries, Inc.

40,000

5,080,000

 

23,347,250

Professional Services - 1.0%

Acacia Research Corp.

640,100

10,843,294

Towers Watson & Co.

105,000

11,882,850

 

22,726,144

Road & Rail - 1.2%

CSX Corp.

150,000

5,434,500

J.B. Hunt Transport Services, Inc.

75,000

6,318,750

Kansas City Southern

37,500

4,576,125

Union Pacific Corp.

87,500

10,423,875

 

26,753,250

TOTAL INDUSTRIALS

251,256,697

INFORMATION TECHNOLOGY - 22.8%

Communications Equipment - 3.3%

Cisco Systems, Inc.

1,525,000

42,417,875

Juniper Networks, Inc.

250,000

5,580,000

QUALCOMM, Inc.

337,500

25,086,375

 

73,084,250

Electronic Equipment & Components - 0.9%

Hitachi Ltd.

1,100,000

8,118,842

TE Connectivity Ltd.

175,000

11,068,750

 

19,187,592

 

Shares

Value

Internet Software & Services - 5.0%

Cornerstone OnDemand, Inc. (a)

125,000

$ 4,400,000

eBay, Inc. (a)

150,000

8,418,000

Google, Inc. Class C (a)

130,000

68,431,999

Twitter, Inc. (a)

125,000

4,483,750

Yahoo!, Inc. (a)

500,000

25,255,000

 

110,988,749

IT Services - 5.6%

Cognizant Technology Solutions Corp. Class A (a)

187,500

9,873,750

IBM Corp.

275,000

44,121,000

MasterCard, Inc. Class A

325,000

28,002,000

Paychex, Inc.

200,000

9,234,000

Visa, Inc. Class A

125,000

32,775,000

 

124,005,750

Semiconductors & Semiconductor Equipment - 2.1%

Applied Materials, Inc.

550,000

13,706,000

Broadcom Corp. Class A

750,000

32,497,500

 

46,203,500

Software - 3.5%

Microsoft Corp.

750,000

34,837,500

Oracle Corp.

800,000

35,976,000

ServiceNow, Inc. (a)

100,000

6,785,000

 

77,598,500

Technology Hardware, Storage & Peripherals - 2.4%

Apple, Inc.

425,000

46,911,500

First Data Holdings, Inc. Class B (f)

2,164,642

5,952,766

 

52,864,266

TOTAL INFORMATION TECHNOLOGY

503,932,607

MATERIALS - 2.7%

Chemicals - 1.5%

Airgas, Inc.

25,000

2,879,500

FMC Corp.

100,000

5,703,000

Monsanto Co.

100,000

11,947,000

Potash Corp. of Saskatchewan, Inc.

200,000

7,070,064

Tronox Ltd. Class A

239,300

5,714,484

 

33,314,048

Containers & Packaging - 0.3%

AEP Industries, Inc. (a)

800

46,520

Packaging Corp. of America

75,000

5,853,750

 

5,900,270

Metals & Mining - 0.5%

Freeport-McMoRan, Inc.

450,000

10,512,000

Paper & Forest Products - 0.4%

West Fraser Timber Co. Ltd.

150,000

8,581,942

TOTAL MATERIALS

58,308,260

Common Stocks - continued

Shares

Value

TELECOMMUNICATION SERVICES - 2.3%

Diversified Telecommunication Services - 2.3%

Verizon Communications, Inc.

1,100,000

$ 51,458,000

UTILITIES - 1.7%

Electric Utilities - 1.5%

Exelon Corp.

425,000

15,759,000

Southern Co.

350,000

17,188,500

 

32,947,500

Independent Power Producers & Renewable Electricity Producers - 0.2%

Dynegy, Inc. (a)

109,414

3,320,715

TOTAL UTILITIES

36,268,215

TOTAL COMMON STOCKS

(Cost $1,784,158,889)

2,128,450,723

Convertible Preferred Stocks - 0.0%

 

 

 

 

CONSUMER DISCRETIONARY - 0.0%

Leisure Products - 0.0%

NJOY, Inc.:

Series C (a)(f)

65,160

525,841

Series D (f)

20,764

167,565

(Cost $878,142)

693,406

Convertible Bonds - 0.3%

 

Principal Amount

 

ENERGY - 0.1%

Oil, Gas & Consumable Fuels - 0.1%

Amyris, Inc. 3% 2/27/17

$ 2,000,000

1,690,080

INFORMATION TECHNOLOGY - 0.2%

Semiconductors & Semiconductor Equipment - 0.2%

GT Advanced Technologies, Inc. 3% 10/1/17

10,000,000

4,962,500

TOTAL CONVERTIBLE BONDS

(Cost $4,422,774)

6,652,580

Money Market Funds - 4.5%

Shares

Value

Fidelity Cash Central Fund, 0.13% (b)

78,465,596

$ 78,465,596

Fidelity Securities Lending Cash Central Fund, 0.13% (b)(c)

19,993,513

19,993,513

TOTAL MONEY MARKET FUNDS

(Cost $98,459,109)

98,459,109

TOTAL INVESTMENT PORTFOLIO - 101.3%

(Cost $1,887,918,914)


2,234,255,818

NET OTHER ASSETS (LIABILITIES) - (1.3)%

(27,636,968)

NET ASSETS - 100%

$ 2,206,618,850

Legend

(a) Non-income producing

(b) Affiliated fund that is generally 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. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.

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

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

(e) Investment is owned by an entity that is treated as a U.S. Corporation for tax purposes in which the Fund holds a percentage ownership.

(f) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $27,591,972 or 1.3% of net assets.

Additional information on each restricted holding is as follows:

Security

Acquisition Date

Acquisition Cost

First Data Holdings, Inc. Class B

6/26/14

$ 8,658,568

KKR Renaissance Co-Invest LP unit

7/25/13

$ 5,275,000

New Academy Holding Co. LLC unit

8/1/11

$ 6,324,000

NJOY, Inc. Series C

6/7/13

$ 526,688

NJOY, Inc. Series D

2/14/14

$ 351,454

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

$ 25,349

Fidelity Securities Lending Cash Central Fund

116,498

Total

$ 141,847

Other Information

The following is a summary of the inputs used, as of December 31, 2014, involving the Fund's assets and liabilities carried at fair 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:

Equities:

Consumer Discretionary

$ 274,997,387

$ 249,444,180

$ 14,625,001

$ 10,928,206

Consumer Staples

173,786,326

173,786,326

-

-

Energy

191,807,189

191,807,189

-

-

Financials

361,607,641

350,896,641

-

10,711,000

Health Care

225,721,807

222,937,386

2,784,421

-

Industrials

251,256,697

251,256,697

-

-

Information Technology

503,932,607

489,860,999

8,118,842

5,952,766

Materials

58,308,260

58,308,260

-

-

Telecommunication Services

51,458,000

51,458,000

-

-

Utilities

36,268,215

36,268,215

-

-

Corporate Bonds

6,652,580

-

6,652,580

-

Money Market Funds

98,459,109

98,459,109

-

-

Total Investments in Securities:

$ 2,234,255,818

$ 2,174,483,002

$ 32,180,844

$ 27,591,972

The following is a summary of transfers between Level 1 and Level 2 for the period ended December 31, 2014. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed at the end of this listing:

Transfers

Total

Level 1 to Level 2

$ 28,108,160

Level 2 to Level 1

$ 0

Valuation Inputs at Reporting Date:

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

Investments in Securities:

Beginning Balance

$ 24,066,374

Net Realized Gain (Loss) on Investment Securities

-

Net Unrealized Gain (Loss) on Investment Securities

3,525,598

Cost of Purchases

-

Proceeds of Sales

-

Amortization/Accretion

-

Transfers into Level 3

-

Transfers out of Level 3

-

Ending Balance

$ 27,591,972

The change in unrealized gain (loss) for the period attributable to Level 3 securities held at December 31, 2014

$ 3,525,598

The information used in the above reconciliation represents fiscal year to date activity for any Investments in 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 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges.

Income Tax Information

At December 31, 2014, the cost of investment securities for income tax purposes was $1,892,003,187. Net unrealized appreciation aggregated $342,252,631, of which $430,456,971 related to appreciated investment securities and $88,204,340 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. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations. The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels: Level 1 - quoted prices in active markets for identical investments: Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds etc.): Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available). Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the Fund's investments by major category are as follows:

Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. Equity securities, including restricted securities, for which observable inputs are not available, are valued using alternate valuation approaches, including the market approach and the income approach and are categorized as Level 3 in the hierarchy. The market approach generally consists of using comparable market transactions while the income approach generally consists of using the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.

Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices.

When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.

Investments in open-end mutual funds including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.

The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.

Asset Type

Fair Value at 12/31/14

Valuation
Technique(s)

Unobservable Input

Amount or Range /
Weighted Average

Impact to
Valuation from an
Increase in Input*

Equities

$ 27,591,972

Discounted cash flow

Discount rate

10.0% - 15.0%/12.5%

Decrease

 

 

 

FCF multiple

14.6

Increase

 

 

 

Discount rate

15%

Decrease

 

 

Market comparable

EV/EBITDA multiple

8.6 - 11.9/10.3

Increase

 

 

 

EV/Sales multiple

6

Increase

* Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or lower fair value measurements.

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

Quarterly Report

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

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

Quarterly Report

Item 2. Controls and Procedures

(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Destiny Portfolios'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 Destiny Portfolios

By:

/s/Kenneth B. Robins

 

Kenneth B. Robins

 

President and Treasurer

 

 

Date:

March 2, 2015

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

By:

/s/Kenneth B. Robins

 

Kenneth B. Robins

 

President and Treasurer

 

 

Date:

March 2, 2015

By:

/s/Howard J. Galligan III

 

Howard J. Galligan III

 

Chief Financial Officer

 

 

Date:

March 2, 2015