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 811-1352

Fidelity Devonshire 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:

July 31

 

 

Date of reporting period:

October 31, 2009

Item 1. Schedule of Investments

Quarterly Holdings Report

for

Fidelity® Real Estate
Investment Portfolio

October 31, 2009 

1.809107.105

REA-QTLY-1209

Investments October 31, 2009 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 99.3%

Shares

Value (000s)

REAL ESTATE INVESTMENT TRUSTS - 96.6%

REITs - Apartments - 16.3%

Apartment Investment & Management Co. Class A (d)

6,027,374

$ 74,438

AvalonBay Communities, Inc.

920,000

63,278

Equity Residential (SBI)

3,455,400

99,792

Home Properties, Inc. (d)

1,835,200

71,903

UDR, Inc.

5,103,041

73,382

TOTAL REITS - APARTMENTS

382,793

REITs - Factory Outlets - 2.4%

Tanger Factory Outlet Centers, Inc.

1,461,100

55,624

REITs - Health Care Facilities - 12.4%

HCP, Inc.

2,740,712

81,098

Healthcare Realty Trust, Inc.

1,425,000

29,683

Nationwide Health Properties, Inc.

1,418,700

45,753

Ventas, Inc.

3,382,392

135,735

TOTAL REITS - HEALTH CARE FACILITIES

292,269

REITs - Hotels - 6.3%

DiamondRock Hospitality Co. (a)

2,238,000

17,031

Host Hotels & Resorts, Inc.

10,105,000

102,162

Sunstone Hotel Investors, Inc.

3,751,774

28,326

TOTAL REITS - HOTELS

147,519

REITs - Industrial Buildings - 12.9%

DCT Industrial Trust, Inc.

3,365,000

15,243

Duke Realty LP

5,668,000

63,708

First Industrial Realty Trust, Inc.

1,530,000

6,656

ProLogis Trust

12,892,302

146,070

Public Storage

789,600

58,115

U-Store-It Trust

2,546,100

14,513

TOTAL REITS - INDUSTRIAL BUILDINGS

304,305

REITs - Malls - 15.5%

CBL & Associates Properties, Inc. (c)

4,081,400

33,304

Common Stocks - continued

Shares

Value (000s)

REAL ESTATE INVESTMENT TRUSTS - CONTINUED

REITs - Malls - continued

Simon Property Group, Inc.

3,927,404

$ 266,632

The Macerich Co. (c)

2,144,999

63,921

TOTAL REITS - MALLS

363,857

REITs - Management/Investment - 3.2%

Digital Realty Trust, Inc. (c)

1,628,300

73,485

Franklin Street Properties Corp.

190,000

2,048

TOTAL REITS - MANAGEMENT/INVESTMENT

75,533

REITs - Office Buildings - 14.2%

Boston Properties, Inc.

1,706,600

103,710

Brandywine Realty Trust (SBI)

3,338,900

31,920

Corporate Office Properties Trust (SBI)

1,708,629

56,709

Highwoods Properties, Inc. (SBI)

2,326,270

64,019

SL Green Realty Corp. (c)

2,044,746

79,254

TOTAL REITS - OFFICE BUILDINGS

335,612

REITs - Shopping Centers - 13.4%

Cedar Shopping Centers, Inc.

1,205,200

7,316

Developers Diversified Realty Corp. (c)

7,089,767

60,901

Federal Realty Investment Trust (SBI)

808,200

47,708

Glimcher Realty Trust

181,400

490

Kimco Realty Corp.

3,500,000

44,240

Kite Realty Group Trust

1,830,000

6,789

Ramco-Gershenson Properties Trust (SBI)

272,100

2,405

Regency Centers Corp.

776,000

26,035

Vornado Realty Trust

2,001,938

119,235

TOTAL REITS - SHOPPING CENTERS

315,119

TOTAL REAL ESTATE INVESTMENT TRUSTS

2,272,631

Common Stocks - continued

Shares

Value (000s)

REAL ESTATE MANAGEMENT & DEVELOPMENT - 2.7%

Real Estate Operating Companies - 2.4%

Brookfield Properties Corp.

4,300,800

$ 44,682

Forest City Enterprises, Inc. Class A

1,350,000

11,772

TOTAL REAL ESTATE OPERATING COMPANIES

56,454

Real Estate Services - 0.3%

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

811,800

8,402

TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT

64,856

TOTAL COMMON STOCKS

(Cost $2,802,310)

2,337,487

Convertible Preferred Stocks - 0.2%

 

 

 

 

REAL ESTATE MANAGEMENT & DEVELOPMENT - 0.2%

Real Estate Services - 0.2%

Grubb & Ellis Co. 12.00% (a)(e)(f)
(Cost $5,000)

50,000

5,000

Money Market Funds - 8.7%

 

 

 

 

Fidelity Cash Central Fund, 0.20% (g)

10,232,378

10,232

Fidelity Securities Lending Cash Central Fund, 0.15% (b)(g)

194,058,625

194,059

TOTAL MONEY MARKET FUNDS

(Cost $204,291)

204,291

TOTAL INVESTMENT PORTFOLIO - 108.2%

(Cost $3,011,601)

2,546,778

NET OTHER ASSETS - (8.2)%

(193,540)

NET ASSETS - 100%

$ 2,353,238

Legend

(a) Non-income producing

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

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

(d) Affiliated company

(e) 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 $5,000,000 or 0.2% of net assets.

(f) Security or a portion of the security purchased on a delayed delivery or when-issued basis.

(g) 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.

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
(Amounts in thousands)

Fidelity Cash Central Fund

$ 40

Fidelity Securities Lending Cash Central Fund

189

Total

$ 229

Other Affiliated Issuers

An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows:

Affiliates
(Amounts in thousands)

Value, beginning of period

Purchases

Sales Proceeds

Dividend Income

Value, end of period

Apartment Investment & Management Co. Class A

$ 54,906

$ 2,579

$ -

$ 585

$ 74,438

Home Properties, Inc.

50,701

16,692

-

1,049

71,903

SL Green Realty Corp.

109,558

-

81,382

248

-

Sunstone Hotel Investors, Inc.

20,161

3,063

2,386

-

-

Total

$ 235,326

$ 22,334

$ 83,768

$ 1,882

$ 146,341

Other Information

The following is a summary of the inputs used, as of October 31, 2009, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section at the end of this listing.

Valuation Inputs at Reporting Date:

Description
(Amounts in thousands)

Total

Level 1

Level 2

Level 3

Investments in Securities:

Equities:

Financials

$ 2,342,487

$ 2,337,487

$ 5,000

$ -

Money Market Funds

204,291

204,291

-

-

Total Investments in Securities:

$ 2,546,778

$ 2,541,778

$ 5,000

$ -

Income Tax Information

At October 31, 2009, the cost of investment securities for income tax purposes was $3,200,510,000. Net unrealized depreciation aggregated $653,732,000, of which $252,645,000 related to appreciated investment securities and $906,377,000 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 Fund uses independent pricing services approved by the Board of Trustees to value its investments. Generally Accepted Accounting Principles (GAAP) establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are classified into three levels. Level 1 includes readily available unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes observable inputs other than quoted prices included in Level 1 that are observable either directly or indirectly. Level 3 includes unobservable inputs when market prices are not readily available or reliable. Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy. Valuation techniques of the Fund's major categories of assets and liabilities 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 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.

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.

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 Devonshire 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 Devonshire Trust

By:

/s/Kenneth B. Robins

 

Kenneth B. Robins

 

President and Treasurer

 

 

Date:

December 30, 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/Kenneth B. Robins

 

Kenneth B. Robins

 

President and Treasurer

 

 

Date:

December 30, 2009

By:

/s/Christine Reynolds

 

Christine Reynolds

 

Chief Financial Officer

 

 

Date:

December 30, 2009