N-Q 1 Destiny_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:

June 30, 2015

Item 1. Schedule of Investments

Investments June 30, 2015 (Unaudited)

Quarterly Holdings Report

for

Fidelity Advisor® Capital Development Fund

June 30, 2015 

1.804793.111

DESIIO-QTLY-0815

Investments June 30, 2015 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 99.6%

Shares

Value

CONSUMER DISCRETIONARY - 10.2%

Automobiles - 0.1%

Harley-Davidson, Inc.

53,400

$ 3,009,090

Diversified Consumer Services - 0.3%

H&R Block, Inc.

278,100

8,245,665

Hotels, Restaurants & Leisure - 1.1%

Interval Leisure Group, Inc.

25,028

571,890

Las Vegas Sands Corp.

140,700

7,396,599

Yum! Brands, Inc.

276,824

24,936,306

 

32,904,795

Household Durables - 0.4%

KB Home

433,300

7,192,780

Taylor Morrison Home Corp. (a)

266,600

5,427,976

 

12,620,756

Internet & Catalog Retail - 0.3%

Priceline Group, Inc. (a)

6,900

7,944,453

Media - 4.4%

Comcast Corp. Class A

876,400

52,706,696

Liberty Global PLC Class A (a)

103,900

5,617,873

Sinclair Broadcast Group, Inc. Class A (d)

287,600

8,026,916

Starz Series A (a)

223,800

10,008,336

Time Warner, Inc.

434,010

37,936,814

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

265,200

17,142,528

 

131,439,163

Multiline Retail - 2.2%

Target Corp.

832,650

67,969,220

Specialty Retail - 1.3%

Lowe's Companies, Inc.

512,600

34,328,822

Lumber Liquidators Holdings, Inc. (a)(d)

208,329

4,314,494

 

38,643,316

Textiles, Apparel & Luxury Goods - 0.1%

Michael Kors Holdings Ltd. (a)

70,000

2,946,300

TOTAL CONSUMER DISCRETIONARY

305,722,758

CONSUMER STAPLES - 7.3%

Beverages - 2.2%

Diageo PLC

556,901

16,127,736

PepsiCo, Inc.

102,400

9,558,016

SABMiller PLC

185,500

9,630,066

The Coca-Cola Co.

801,400

31,438,922

 

66,754,740

Food & Staples Retailing - 1.1%

CVS Health Corp.

154,200

16,172,496

Tesco PLC

552,000

1,839,144

United Natural Foods, Inc. (a)

23,900

1,521,952

Walgreens Boots Alliance, Inc.

142,200

12,007,368

 

31,540,960

 

Shares

Value

Household Products - 1.7%

Procter & Gamble Co.

649,800

$ 50,840,352

Tobacco - 2.3%

British American Tobacco PLC sponsored ADR

260,764

28,227,703

Philip Morris International, Inc.

367,844

29,490,053

Reynolds American, Inc.

167,200

12,483,152

 

70,200,908

TOTAL CONSUMER STAPLES

219,336,960

ENERGY - 8.8%

Energy Equipment & Services - 1.3%

Ensco PLC Class A

658,200

14,658,114

Helmerich & Payne, Inc.

4,200

295,764

National Oilwell Varco, Inc.

87,800

4,238,984

Oceaneering International, Inc.

241,800

11,265,462

Schlumberger Ltd.

115,700

9,972,183

 

40,430,507

Oil, Gas & Consumable Fuels - 7.5%

Amyris, Inc. (a)(d)

1,923,702

3,751,219

Anadarko Petroleum Corp.

56,700

4,426,002

Apache Corp.

425,000

24,492,750

Cabot Oil & Gas Corp.

236,200

7,449,748

Cairn Energy PLC (a)

997,970

2,662,566

Chevron Corp.

460,827

44,455,981

Cobalt International Energy, Inc. (a)

1,211,800

11,766,578

ConocoPhillips Co.

236,300

14,511,183

Golar LNG Ltd.

80,600

3,772,080

Imperial Oil Ltd.

532,100

20,555,504

Kinder Morgan, Inc.

163,600

6,280,604

Legacy Reserves LP

127,900

1,096,103

Markwest Energy Partners LP

193,800

10,926,444

Memorial Resource Development Corp.

80,200

1,521,394

Noble Energy, Inc.

63,600

2,714,448

Rice Energy, Inc. (a)

141,900

2,955,777

SM Energy Co.

55,600

2,564,272

Suncor Energy, Inc.

1,507,100

41,508,599

The Williams Companies, Inc.

300,158

17,226,068

 

224,637,320

TOTAL ENERGY

265,067,827

FINANCIALS - 21.7%

Banks - 14.0%

Bank of America Corp.

4,764,600

81,093,492

Citigroup, Inc.

1,401,104

77,396,985

Comerica, Inc.

223,400

11,464,888

Fifth Third Bancorp

267,700

5,573,514

JPMorgan Chase & Co.

1,935,510

131,150,153

Lloyds Banking Group PLC

1,034,000

1,387,834

PNC Financial Services Group, Inc.

99,516

9,518,705

Regions Financial Corp.

1,239,500

12,841,220

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Banks - continued

Standard Chartered PLC (United Kingdom)

1,109,960

$ 17,771,611

SunTrust Banks, Inc.

637,300

27,416,646

U.S. Bancorp

559,542

24,284,123

Wells Fargo & Co.

364,550

20,502,292

 

420,401,463

Capital Markets - 4.9%

Charles Schwab Corp.

618,255

20,186,026

E*TRADE Financial Corp. (a)

268,300

8,035,585

Goldman Sachs Group, Inc.

19,200

4,008,768

KKR & Co. LP

303,082

6,925,424

Morgan Stanley

752,300

29,181,717

Northern Trust Corp.

261,295

19,978,616

State Street Corp.

613,190

47,215,630

The Blackstone Group LP

278,500

11,382,295

 

146,914,061

Diversified Financial Services - 0.1%

IntercontinentalExchange Group, Inc.

18,400

4,114,424

Insurance - 2.0%

American International Group, Inc.

387,600

23,961,432

MetLife, Inc.

462,800

25,912,172

Principal Financial Group, Inc.

176,200

9,037,298

 

58,910,902

Real Estate Management & Development - 0.2%

Realogy Holdings Corp. (a)

146,700

6,853,824

Thrifts & Mortgage Finance - 0.5%

MGIC Investment Corp. (a)(d)

1,232,500

14,025,850

Radian Group, Inc.

69,100

1,296,316

 

15,322,166

TOTAL FINANCIALS

652,516,840

HEALTH CARE - 12.9%

Biotechnology - 3.4%

Alnylam Pharmaceuticals, Inc. (a)

34,500

4,135,515

Amgen, Inc.

188,915

29,002,231

BioCryst Pharmaceuticals, Inc. (a)

146,000

2,179,780

Biogen, Inc. (a)

47,700

19,267,938

Celldex Therapeutics, Inc. (a)

11,700

295,074

Clovis Oncology, Inc. (a)

49,300

4,332,484

Discovery Laboratories, Inc. (a)

1,202,400

817,632

Genocea Biosciences, Inc. (a)

41,600

571,168

Insmed, Inc. (a)

147,800

3,609,276

Intercept Pharmaceuticals, Inc. (a)

144,314

34,834,513

Spark Therapeutics, Inc.

28,600

1,723,722

 

100,769,333

Health Care Equipment & Supplies - 3.5%

Abbott Laboratories

166,600

8,176,728

 

Shares

Value

Alere, Inc. (a)

693,500

$ 36,582,125

Boston Scientific Corp. (a)

2,156,751

38,174,493

Medtronic PLC

81,200

6,016,920

Neovasc, Inc. (a)

80,100

547,884

St. Jude Medical, Inc.

103,000

7,526,210

Zimmer Biomet Holdings, Inc.

80,500

8,793,015

 

105,817,375

Health Care Providers & Services - 1.9%

Express Scripts Holding Co. (a)

313,100

27,847,114

McKesson Corp.

122,380

27,512,248

 

55,359,362

Health Care Technology - 0.0%

Castlight Health, Inc. Class B (a)

80,700

656,898

Life Sciences Tools & Services - 0.1%

Bruker Corp. (a)

80,500

1,643,005

Pharmaceuticals - 4.0%

Allergan PLC (a)

56,900

17,266,874

GlaxoSmithKline PLC sponsored ADR

812,400

33,836,460

Jazz Pharmaceuticals PLC (a)

56,000

9,859,920

Johnson & Johnson

212,760

20,735,590

Novartis AG sponsored ADR

26,091

2,565,789

Teva Pharmaceutical Industries Ltd. sponsored ADR

484,150

28,613,265

TherapeuticsMD, Inc. (a)

492,500

3,871,050

Theravance, Inc.

253,700

4,584,359

 

121,333,307

TOTAL HEALTH CARE

385,579,280

INDUSTRIALS - 12.1%

Aerospace & Defense - 1.4%

KEYW Holding Corp. (a)(d)

120,517

1,123,218

Meggitt PLC

294,000

2,154,523

The Boeing Co.

194,100

26,925,552

United Technologies Corp.

113,200

12,557,276

 

42,760,569

Air Freight & Logistics - 1.9%

FedEx Corp.

106,800

18,198,720

Hub Group, Inc. Class A (a)

244,400

9,859,096

United Parcel Service, Inc. Class B

292,200

28,317,102

 

56,374,918

Building Products - 0.2%

Caesarstone Sdot-Yam Ltd.

23,400

1,603,836

Lennox International, Inc.

55,600

5,987,564

 

7,591,400

Commercial Services & Supplies - 0.5%

ADT Corp. (d)

425,900

14,297,463

Electrical Equipment - 1.0%

AMETEK, Inc.

158,100

8,660,718

Emerson Electric Co.

226,600

12,560,438

Common Stocks - continued

Shares

Value

INDUSTRIALS - continued

Electrical Equipment - continued

Hubbell, Inc. Class B

59,718

$ 6,466,265

OSRAM Licht AG

41,678

1,995,892

 

29,683,313

Industrial Conglomerates - 3.4%

Danaher Corp.

85,095

7,283,281

General Electric Co.

3,610,900

95,941,613

 

103,224,894

Machinery - 1.0%

Deere & Co.

112,700

10,937,535

Ingersoll-Rand PLC

97,400

6,566,708

Joy Global, Inc. (d)

122,400

4,430,880

Rexnord Corp. (a)

156,000

3,729,960

Valmont Industries, Inc.

41,300

4,909,331

 

30,574,414

Professional Services - 0.5%

Acacia Research Corp.

464,768

4,076,015

Verisk Analytics, Inc. (a)

120,300

8,753,028

WageWorks, Inc. (a)

32,800

1,326,760

 

14,155,803

Road & Rail - 1.9%

CSX Corp.

859,200

28,052,880

Genesee & Wyoming, Inc. Class A (a)

36,500

2,780,570

J.B. Hunt Transport Services, Inc.

126,300

10,367,967

Kansas City Southern

99,300

9,056,160

Norfolk Southern Corp.

86,200

7,530,432

 

57,788,009

Trading Companies & Distributors - 0.3%

HD Supply Holdings, Inc. (a)

217,700

7,658,686

TOTAL INDUSTRIALS

364,109,469

INFORMATION TECHNOLOGY - 21.9%

Communications Equipment - 3.0%

Cisco Systems, Inc.

1,603,800

44,040,348

QUALCOMM, Inc.

757,100

47,417,173

 

91,457,521

Electronic Equipment & Components - 0.0%

TE Connectivity Ltd.

22,900

1,472,470

Internet Software & Services - 3.9%

Cornerstone OnDemand, Inc. (a)

157,600

5,484,480

Google, Inc.:

Class A (a)

84,600

45,687,384

Class C

70,383

36,635,055

Twitter, Inc. (a)

317,500

11,499,850

Yahoo!, Inc. (a)

448,759

17,631,741

 

116,938,510

 

Shares

Value

IT Services - 5.3%

Cognizant Technology Solutions Corp. Class A (a)

267,300

$ 16,329,357

Fidelity National Information Services, Inc.

88,200

5,450,760

IBM Corp.

191,900

31,214,454

MasterCard, Inc. Class A

407,100

38,055,708

Paychex, Inc.

362,500

16,994,000

The Western Union Co.

166,200

3,378,846

Unisys Corp. (a)

530,199

10,598,678

Visa, Inc. Class A

547,500

36,764,625

 

158,786,428

Semiconductors & Semiconductor Equipment - 0.9%

Broadcom Corp. Class A

386,736

19,913,037

Marvell Technology Group Ltd.

430,600

5,677,461

 

25,590,498

Software - 4.0%

Adobe Systems, Inc. (a)

131,600

10,660,916

Autodesk, Inc. (a)

141,100

7,065,583

Microsoft Corp.

1,564,500

69,072,675

Oracle Corp.

529,050

21,320,715

Parametric Technology Corp. (a)

72,997

2,994,337

Salesforce.com, Inc. (a)

127,300

8,863,899

 

119,978,125

Technology Hardware, Storage & Peripherals - 4.8%

Apple, Inc.

852,700

106,949,898

EMC Corp.

1,017,600

26,854,464

First Data Holdings, Inc. Class B (e)

2,081,477

9,803,757

 

143,608,119

TOTAL INFORMATION TECHNOLOGY

657,831,671

MATERIALS - 3.3%

Chemicals - 2.6%

Airgas, Inc.

141,690

14,987,968

E.I. du Pont de Nemours & Co.

97,547

6,238,131

Intrepid Potash, Inc. (a)(d)

158,340

1,890,580

LyondellBasell Industries NV Class A

26,200

2,712,224

Monsanto Co.

281,200

29,973,108

Potash Corp. of Saskatchewan, Inc.

250,100

7,745,291

Syngenta AG (Switzerland)

32,455

13,242,352

 

76,789,654

Containers & Packaging - 0.3%

MeadWestvaco Corp.

87,300

4,119,687

Rock-Tenn Co. Class A

63,800

3,840,760

 

7,960,447

Metals & Mining - 0.4%

Freeport-McMoRan, Inc.

719,100

13,389,642

TOTAL MATERIALS

98,139,743

Common Stocks - continued

Shares

Value

TELECOMMUNICATION SERVICES - 1.2%

Diversified Telecommunication Services - 1.2%

Verizon Communications, Inc.

790,006

$ 36,822,180

UTILITIES - 0.2%

Independent Power and Renewable Electricity Producers - 0.2%

Dynegy, Inc. (a)

169,800

4,966,650

TOTAL COMMON STOCKS

(Cost $2,570,383,440)


2,990,093,378

Convertible Preferred Stocks - 0.0%

 

 

 

 

CONSUMER DISCRETIONARY - 0.0%

Leisure Products - 0.0%

NJOY, Inc. Series D (a)(e)

(Cost $474,963)

28,061


13,927

Money Market Funds - 1.4%

 

 

 

 

Fidelity Cash Central Fund, 0.15% (b)

9,964,862

9,964,862

Fidelity Securities Lending Cash Central Fund, 0.17% (b)(c)

32,666,746

32,666,746

TOTAL MONEY MARKET FUNDS

(Cost $42,631,608)


42,631,608

TOTAL INVESTMENT
PORTFOLIO - 101.0%

(Cost $2,613,490,011)

3,032,738,913

NET OTHER ASSETS (LIABILITIES) - (1.0)%

(31,077,134)

NET ASSETS - 100%

$ 3,001,661,779

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 $9,817,684 or 0.3% 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

$ 8,325,908

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

$ 9,768

Fidelity Securities Lending Cash Central Fund

743,158

Total

$ 752,926

Other Information

The following is a summary of the inputs used, as of June 30, 2015, 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

$ 305,736,685

$ 305,722,758

$ -

$ 13,927

Consumer Staples

219,336,960

201,370,080

17,966,880

-

Energy

265,067,827

265,067,827

-

-

Financials

652,516,840

651,129,006

1,387,834

-

Health Care

385,579,280

385,579,280

-

-

Industrials

364,109,469

364,109,469

-

-

Information Technology

657,831,671

648,027,914

-

9,803,757

Materials

98,139,743

84,897,391

13,242,352

-

Telecommunication Services

36,822,180

36,822,180

-

-

Utilities

4,966,650

4,966,650

-

-

Money Market Funds

42,631,608

42,631,608

-

-

Total Investments in Securities:

$ 3,032,738,913

$ 2,990,324,163

$ 32,597,066

$ 9,817,684

Income Tax Information

At June 30, 2015, the cost of investment securities for income tax purposes was $2,616,310,350. Net unrealized appreciation aggregated $416,428,563, of which $539,458,915 related to appreciated investment securities and $123,030,352 related to depreciated investment securities.

Investment Valuation

Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Security transactions are accounted for as of trade date. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by 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 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 reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee. 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

Investments June 30, 2015 (Unaudited)

Quarterly Holdings Report

for

Fidelity Advisor® Diversified Stock Fund

June 30, 2015 

1.804792.111

DESIO-QTLY-0815

Investments June 30, 2015 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 98.9%

Shares

Value

CONSUMER DISCRETIONARY - 10.2%

Automobiles - 0.5%

General Motors Co.

300,000

$ 9,999,000

Hotels, Restaurants & Leisure - 1.1%

McDonald's Corp.

90,000

8,556,300

Yum! Brands, Inc.

150,000

13,512,000

 

22,068,300

Household Durables - 1.3%

Jarden Corp. (a)

75,000

3,881,250

KB Home (e)

475,000

7,885,000

Taylor Morrison Home Corp. (a)

351,053

7,147,439

Tupperware Brands Corp.

125,000

8,067,500

 

26,981,189

Leisure Products - 1.1%

Brunswick Corp.

225,000

11,443,500

New Academy Holding Co. LLC unit (a)(g)(h)

60,000

11,169,600

 

22,613,100

Media - 3.0%

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

500,000

29,970,000

DIRECTV (a)

200,000

18,558,000

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

200,000

12,928,000

 

61,456,000

Multiline Retail - 1.6%

Dollar General Corp.

125,000

9,717,500

Target Corp.

287,500

23,468,625

 

33,186,125

Specialty Retail - 1.1%

Cabela's, Inc. Class A (a)(e)

90,000

4,498,200

GNC Holdings, Inc.

100,000

4,448,000

Lumber Liquidators Holdings, Inc. (a)(e)

150,000

3,106,500

TJX Companies, Inc.

175,000

11,579,750

 

23,632,450

Textiles, Apparel & Luxury Goods - 0.5%

Arezzo Industria e Comercio SA

575,000

4,440,433

Tory Burch LLC unit (a)(f)(h)

70,274

4,999,995

 

9,440,428

TOTAL CONSUMER DISCRETIONARY

209,376,592

CONSUMER STAPLES - 5.3%

Beverages - 0.8%

Diageo PLC sponsored ADR

75,000

8,703,000

Molson Coors Brewing Co. Class B

100,000

6,981,000

 

15,684,000

Food & Staples Retailing - 1.9%

CVS Health Corp.

275,000

28,842,000

 

Shares

Value

Sprouts Farmers Market LLC (a)

125,000

$ 3,372,500

Whole Foods Market, Inc.

175,000

6,902,000

 

39,116,500

Food Products - 0.3%

Amira Nature Foods Ltd. (a)(e)

267,000

3,067,830

Hormel Foods Corp.

75,000

4,227,750

 

7,295,580

Household Products - 2.1%

Procter & Gamble Co.

550,000

43,032,000

Personal Products - 0.2%

Avon Products, Inc. (e)

525,000

3,286,500

TOTAL CONSUMER STAPLES

108,414,580

ENERGY - 8.4%

Energy Equipment & Services - 1.9%

Ensco PLC Class A

350,000

7,794,500

Helmerich & Payne, Inc.

37,500

2,640,750

National Oilwell Varco, Inc.

150,000

7,242,000

Nuverra Environmental Solutions, Inc. (a)

10,885

68,249

Oceaneering International, Inc.

87,500

4,076,625

Schlumberger Ltd.

212,500

18,315,375

 

40,137,499

Oil, Gas & Consumable Fuels - 6.5%

Anadarko Petroleum Corp.

150,000

11,709,000

Apache Corp.

137,500

7,924,125

Cabot Oil & Gas Corp.

170,000

5,361,800

Cameco Corp. (e)

275,000

3,934,548

Chevron Corp.

350,000

33,764,500

CONSOL Energy, Inc. (e)

425,000

9,239,500

Foresight Energy LP

200,000

2,540,000

QEP Resources, Inc.

225,000

4,164,750

Suncor Energy, Inc.

950,000

26,164,932

The Williams Companies, Inc.

425,000

24,390,750

Williams Partners LP

100,000

4,843,000

 

134,036,905

TOTAL ENERGY

174,174,404

FINANCIALS - 22.7%

Banks - 10.4%

Bank of America Corp.

2,200,000

37,444,000

Comerica, Inc.

175,000

8,981,000

Commerce Bancshares, Inc. (e)

100,000

4,677,000

First Niagara Financial Group, Inc.

625,000

5,900,000

FirstMerit Corp.

225,000

4,686,750

Huntington Bancshares, Inc.

700,000

7,917,000

JPMorgan Chase & Co.

700,000

47,432,000

KeyCorp

600,000

9,012,000

M&T Bank Corp.

50,000

6,246,500

Regions Financial Corp.

1,100,000

11,396,000

Standard Chartered PLC (United Kingdom)

475,000

7,605,243

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Banks - continued

SunTrust Banks, Inc.

375,000

$ 16,132,500

U.S. Bancorp

400,000

17,360,000

UMB Financial Corp.

150,000

8,553,000

Wells Fargo & Co.

375,000

21,090,000

 

214,432,993

Capital Markets - 6.0%

Ares Capital Corp.

400,000

6,584,000

KKR & Co. LP

1,210,000

27,648,500

Morgan Stanley

637,500

24,728,625

State Street Corp.

325,000

25,025,000

The Blackstone Group LP

950,000

38,826,500

 

122,812,625

Diversified Financial Services - 0.4%

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

50,000

8,356,500

Insurance - 3.9%

Allied World Assurance Co.

175,000

7,563,500

American International Group, Inc.

425,000

26,273,500

MetLife, Inc.

425,000

23,795,750

The Chubb Corp.

250,000

23,785,000

 

81,417,750

Thrifts & Mortgage Finance - 2.0%

MGIC Investment Corp. (a)

500,000

5,690,000

Radian Group, Inc. (e)

1,900,900

35,660,884

 

41,350,884

TOTAL FINANCIALS

468,370,752

HEALTH CARE - 9.8%

Biotechnology - 2.0%

Alnylam Pharmaceuticals, Inc. (a)

17,500

2,097,725

Amgen, Inc.

130,000

19,957,600

Anacor Pharmaceuticals, Inc. (a)

37,500

2,903,625

Biogen, Inc. (a)

10,000

4,039,400

Clovis Oncology, Inc. (a)

30,000

2,636,400

Intercept Pharmaceuticals, Inc. (a)

16,500

3,982,770

Spark Therapeutics, Inc.

50,000

3,013,500

Trevena, Inc. (a)

400,000

2,504,000

 

41,135,020

Health Care Equipment & Supplies - 1.7%

Baxter International, Inc.

90,000

6,293,700

Boston Scientific Corp. (a)

500,000

8,850,000

Medtronic PLC

275,000

20,377,500

 

35,521,200

Health Care Providers & Services - 1.5%

Express Scripts Holding Co. (a)

200,000

17,788,000

 

Shares

Value

HCA Holdings, Inc. (a)

100,000

$ 9,072,000

Qualicorp SA

500,000

3,169,728

 

30,029,728

Pharmaceuticals - 4.6%

Dermira, Inc.

125,000

2,193,750

GlaxoSmithKline PLC sponsored ADR

475,000

19,783,750

Jazz Pharmaceuticals PLC (a)

80,000

14,085,600

Johnson & Johnson

475,000

46,293,500

Teva Pharmaceutical Industries Ltd. sponsored ADR

150,000

8,865,000

TherapeuticsMD, Inc. (a)

600,000

4,716,000

 

95,937,600

TOTAL HEALTH CARE

202,623,548

INDUSTRIALS - 11.5%

Aerospace & Defense - 1.7%

The Boeing Co.

150,000

20,808,000

United Technologies Corp.

125,000

13,866,250

 

34,674,250

Air Freight & Logistics - 2.2%

FedEx Corp.

70,000

11,928,000

PostNL NV (a)

2,665,600

11,848,344

United Parcel Service, Inc. Class B

225,000

21,804,750

 

45,581,094

Airlines - 0.2%

Copa Holdings SA Class A

62,500

5,161,875

Construction & Engineering - 0.6%

Jacobs Engineering Group, Inc. (a)

300,000

12,186,000

Electrical Equipment - 1.1%

AMETEK, Inc.

137,500

7,532,250

Babcock & Wilcox Co.

150,000

4,920,000

Eaton Corp. PLC

150,000

10,123,500

 

22,575,750

Industrial Conglomerates - 3.1%

Danaher Corp.

175,000

14,978,250

General Electric Co.

1,850,000

49,154,500

 

64,132,750

Machinery - 1.0%

Cummins, Inc.

50,000

6,559,500

Deere & Co.

100,000

9,705,000

Joy Global, Inc. (e)

100,000

3,620,000

 

19,884,500

Professional Services - 0.9%

Acacia Research Corp.

685,000

6,007,450

Towers Watson & Co.

100,000

12,580,000

 

18,587,450

Common Stocks - continued

Shares

Value

INDUSTRIALS - continued

Road & Rail - 0.7%

CSX Corp.

175,000

$ 5,713,750

J.B. Hunt Transport Services, Inc.

100,000

8,209,000

 

13,922,750

TOTAL INDUSTRIALS

236,706,419

INFORMATION TECHNOLOGY - 23.3%

Communications Equipment - 3.5%

Cisco Systems, Inc.

1,400,000

38,444,000

QUALCOMM, Inc.

525,000

32,880,750

 

71,324,750

Electronic Equipment & Components - 0.7%

Hitachi Ltd.

1,100,000

7,251,542

TE Connectivity Ltd.

112,500

7,233,750

 

14,485,292

Internet Software & Services - 4.6%

Cornerstone OnDemand, Inc. (a)

125,000

4,350,000

eBay, Inc. (a)

150,000

9,036,000

Google, Inc. Class C

120,329

62,632,448

Twitter, Inc. (a)

112,500

4,074,750

Yahoo!, Inc. (a)

400,000

15,716,000

 

95,809,198

IT Services - 5.2%

IBM Corp.

287,500

46,764,750

MasterCard, Inc. Class A

225,000

21,033,000

Paychex, Inc.

150,000

7,032,000

Visa, Inc. Class A

475,000

31,896,250

 

106,726,000

Semiconductors & Semiconductor Equipment - 2.0%

Altera Corp.

200,000

10,240,000

Applied Materials, Inc.

225,000

4,324,500

Broadcom Corp. Class A

300,000

15,447,000

Lam Research Corp.

137,500

11,185,625

 

41,197,125

Software - 2.2%

Microsoft Corp.

400,000

17,660,000

Oracle Corp.

600,000

24,180,000

ServiceNow, Inc. (a)

50,000

3,715,500

 

45,555,500

Technology Hardware, Storage & Peripherals - 5.1%

Apple, Inc.

500,000

62,712,498

EMC Corp.

1,200,000

31,668,000

First Data Holdings, Inc. Class B (h)

2,164,642

10,195,464

 

104,575,962

TOTAL INFORMATION TECHNOLOGY

479,673,827

 

Shares

Value

MATERIALS - 3.8%

Chemicals - 2.3%

Airgas, Inc.

50,000

$ 5,289,000

LyondellBasell Industries NV Class A

100,000

10,352,000

Monsanto Co.

200,000

21,318,000

Potash Corp. of Saskatchewan, Inc.

225,000

6,967,974

Tronox Ltd. Class A

245,700

3,594,591

 

47,521,565

Containers & Packaging - 1.0%

AEP Industries, Inc. (a)

100,580

5,552,016

MeadWestvaco Corp.

200,000

9,438,000

Rock-Tenn Co. Class A

106,198

6,393,120

 

21,383,136

Metals & Mining - 0.5%

Eldorado Gold Corp.

500,000

2,073,659

Freeport-McMoRan, Inc.

450,000

8,379,000

 

10,452,659

TOTAL MATERIALS

79,357,360

TELECOMMUNICATION SERVICES - 2.3%

Diversified Telecommunication Services - 2.3%

Verizon Communications, Inc.

1,000,000

46,610,000

UTILITIES - 1.6%

Electric Utilities - 1.4%

Exelon Corp.

475,000

14,924,500

Southern Co.

350,000

14,665,000

 

29,589,500

Independent Power and Renewable Electricity Producers - 0.2%

Dynegy, Inc. (a)

150,000

4,387,500

TOTAL UTILITIES

33,977,000

TOTAL COMMON STOCKS

(Cost $1,774,006,387)


2,039,284,482

Convertible Preferred Stocks - 0.0%

 

 

 

 

CONSUMER DISCRETIONARY - 0.0%

Leisure Products - 0.0%

NJOY, Inc.:

Series C (a)(h)

65,160

32,339

Series D (a)(h)

20,764

10,305

 

42,644

TOTAL CONVERTIBLE PREFERRED STOCKS

(Cost $878,142)


42,644

Convertible Bonds - 0.2%

 

Principal Amount

Value

ENERGY - 0.1%

Oil, Gas & Consumable Fuels - 0.1%

Amyris, Inc. 3% 2/27/17

$ 2,000,000

$ 1,763,180

INFORMATION TECHNOLOGY - 0.1%

Semiconductors & Semiconductor Equipment - 0.1%

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

10,000,000

2,750,000

TOTAL CONVERTIBLE BONDS

(Cost $4,673,922)


4,513,180

Money Market Funds - 2.2%

Shares

 

Fidelity Cash Central Fund, 0.15% (b)

16,080,632

16,080,632

Fidelity Securities Lending Cash Central Fund, 0.17% (b)(c)

30,020,175

30,020,175

TOTAL MONEY MARKET FUNDS

(Cost $46,100,807)


46,100,807

TOTAL INVESTMENT
PORTFOLIO - 101.3%

(Cost $1,825,659,258)

2,089,941,113

NET OTHER ASSETS (LIABILITIES) - (1.3)%

(27,519,280)

NET ASSETS - 100%

$ 2,062,421,833

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) Non-income producing - Security is in default.

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

(f) Investment is owned by an entity that is treated as a corporation for U.S. tax purposes and is owned by the Fund.

(g) 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.

(h) 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 $34,764,203 or 1.7% 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

Tory Burch LLC unit

5/14/15

$ 4,999,995

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

$ 63,643

Fidelity Securities Lending Cash Central Fund

380,073

Total

$ 443,716

Other Information

The following is a summary of the inputs used, as of June 30, 2015, 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

$ 209,419,236

$ 193,206,997

$ -

$ 16,212,239

Consumer Staples

108,414,580

108,414,580

-

-

Energy

174,174,404

174,174,404

-

-

Financials

468,370,752

460,014,252

-

8,356,500

Health Care

202,623,548

202,623,548

-

-

Industrials

236,706,419

236,706,419

-

-

Information Technology

479,673,827

469,478,363

-

10,195,464

Materials

79,357,360

79,357,360

-

-

Valuation Inputs at Reporting Date:

Description

Total

Level 1

Level 2

Level 3

Investments in Securities:

Equities:

Telecommunication Services

$ 46,610,000

$ 46,610,000

$ -

$ -

Utilities

33,977,000

33,977,000

-

-

Corporate Bonds

4,513,180

-

4,513,180

-

Money Market Funds

46,100,807

46,100,807

-

-

Total Investments in Securities:

$ 2,089,941,113

$ 2,050,663,730

$ 4,513,180

$ 34,764,203

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

5,697,834

Cost of Purchases

4,999,995

Proceeds of Sales

-

Amortization/Accretion

-

Transfers into Level 3

-

Transfers out of Level 3

-

Ending Balance

$ 34,764,203

The change in unrealized gain (loss) for the period attributable to Level 3 securities held at June 30, 2015

$ 5,697,834

The information used in the above reconciliations 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 June 30, 2015, the cost of investment securities for income tax purposes was $1,828,904,473. Net unrealized appreciation aggregated $261,036,640, of which $366,623,026 related to appreciated investment securities and $105,586,386 related to depreciated investment securities.

Investment Valuation

Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Security transactions are accounted for as of trade date. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by 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 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 reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee. 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 06/30/15

Valuation
Technique(s)

Unobservable Input

Amount or Range /
Weighted Average

Impact to
Valuation from an
Increase in Input*

Equities

$ 34,764,203

Discounted cash flow

Free cash flow multiple

17.7

Increase

 

 

 

Discount rate

8.0%

Decrease

 

 

Expected transaction price

Transaction price

$0.50

Increase

 

 

Last transaction price

Transaction price

$71.15

Increase

 

 

Market comparable

EV/EBITDA multiple

9.2 - 14.2 / 11.9

Increase

 

 

 

Discount rate

15.0%

Decrease

 

 

 

Discount for lack of marketability

15.0%

Decrease

* 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:

August 31, 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:

August 31, 2015

By:

/s/Howard J. Galligan III

 

Howard J. Galligan III

 

Chief Financial Officer

 

 

Date:

August 31, 2015