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:

April 30, 2010

Item 1. Schedule of Investments

Quarterly Holdings Report

for

Fidelity® Real Estate
Investment Portfolio

April 30, 2010 

1.800348.106

REA-QTLY-0610

Investments April 30, 2010 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 98.4%

Shares

Value (000s)

COMMERCIAL SERVICES & SUPPLIES - 0.4%

Security & Alarm Services - 0.4%

Corrections Corp. of America (a)

645,000

$ 13,364

REAL ESTATE INVESTMENT TRUSTS - 95.3%

REITs - Apartments - 12.6%

Apartment Investment & Management Co. Class A

3,552,374

79,609

AvalonBay Communities, Inc.

103,400

10,758

Education Realty Trust, Inc.

1,330,000

9,403

Equity Residential (SBI)

3,605,200

163,207

Home Properties, Inc.

1,410,500

70,088

Post Properties, Inc.

545,000

14,039

UDR, Inc.

3,140,941

63,793

TOTAL REITS - APARTMENTS

410,897

REITs - Factory Outlets - 0.9%

Tanger Factory Outlet Centers, Inc.

674,100

28,043

REITs - Health Care Facilities - 12.7%

HCP, Inc.

4,987,712

160,205

Healthcare Realty Trust, Inc.

1,800,000

43,452

Medical Properties Trust, Inc.

100,000

1,005

Nationwide Health Properties, Inc.

1,291,700

45,235

Ventas, Inc.

3,482,992

164,502

TOTAL REITS - HEALTH CARE FACILITIES

414,399

REITs - Hotels - 8.2%

DiamondRock Hospitality Co.

1,941,576

21,338

Hospitality Properties Trust (SBI)

1,530,000

40,530

Host Hotels & Resorts, Inc.

10,778,605

175,260

Sunstone Hotel Investors, Inc. (a)

2,449,674

31,184

TOTAL REITS - HOTELS

268,312

REITs - Industrial Buildings - 14.5%

DCT Industrial Trust, Inc.

3,495,000

18,384

Duke Realty LP (d)

6,903,000

93,398

ProLogis Trust

10,835,602

142,705

Public Storage

2,025,500

196,291

U-Store-It Trust

2,396,100

20,654

TOTAL REITS - INDUSTRIAL BUILDINGS

471,432

Common Stocks - continued

Shares

Value (000s)

REITs - Malls - 15.5%

CBL & Associates Properties, Inc. (d)

4,081,400

$ 59,588

Simon Property Group, Inc.

3,692,072

328,667

The Macerich Co. (d)

2,624,156

117,326

TOTAL REITS - MALLS

505,581

REITs - Management/Investment - 2.9%

Digital Realty Trust, Inc. (d)

1,613,300

94,701

Lexington Corporate Properties Trust

150,000

1,062

TOTAL REITS - MANAGEMENT/INVESTMENT

95,763

REITs - Mobile Home Parks - 0.4%

Sun Communities, Inc. (d)

450,000

13,014

REITs - Office Buildings - 12.8%

Boston Properties, Inc.

1,768,600

139,472

Brandywine Realty Trust (SBI)

3,673,900

46,805

Corporate Office Properties Trust (SBI)

1,725,629

69,802

Highwoods Properties, Inc. (SBI)

2,340,970

74,841

HRPT Properties Trust (SBI)

100,000

784

SL Green Realty Corp.

1,357,546

84,399

TOTAL REITS - OFFICE BUILDINGS

416,103

REITs - Shopping Centers - 14.8%

Cedar Shopping Centers, Inc.

2,440,200

19,424

Developers Diversified Realty Corp.

5,299,367

65,129

Excel Trust, Inc. (a)

247,800

3,197

Federal Realty Investment Trust (SBI) (d)

978,200

75,703

Kimco Realty Corp.

6,365,800

99,243

Kite Realty Group Trust

2,565,300

13,904

Vornado Realty Trust

2,479,071

206,680

TOTAL REITS - SHOPPING CENTERS

483,280

TOTAL REAL ESTATE INVESTMENT TRUSTS

3,106,824

Common Stocks - continued

Shares

Value (000s)

REAL ESTATE MANAGEMENT & DEVELOPMENT - 2.7%

Real Estate Operating Companies - 2.6%

Brookfield Properties Corp. (d)

3,315,800

$ 53,349

Forest City Enterprises, Inc. Class A (a)(d)

2,065,000

31,904

TOTAL REAL ESTATE OPERATING COMPANIES

85,253

Real Estate Services - 0.1%

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

181,800

3,149

TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT

88,402

TOTAL COMMON STOCKS

(Cost $2,936,077)

3,208,590

Convertible Preferred Stocks - 0.2%

 

 

 

 

REAL ESTATE MANAGEMENT & DEVELOPMENT - 0.2%

Real Estate Services - 0.2%

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

50,000

5,900

Money Market Funds - 5.0%

 

 

 

 

Fidelity Cash Central Fund, 0.21% (b)

38,506,794

38,507

Fidelity Securities Lending Cash Central Fund, 0.22% (b)(c)

124,689,300

124,689

TOTAL MONEY MARKET FUNDS

(Cost $163,196)

163,196

TOTAL INVESTMENT PORTFOLIO - 103.6%

(Cost $3,104,273)

3,377,686

NET OTHER ASSETS - (3.6)%

(117,726)

NET ASSETS - 100%

$ 3,259,960

Legend

(a) Non-income producing

(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request.

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

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

(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 $5,900,000 or 0.2% of net assets.

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

$ 76

Fidelity Securities Lending Cash Central Fund

389

Total

$ 465

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

$ 46,047

$ 1,791

$ -

Home Properties, Inc.

50,701

26,630

28,774

2,975

-

SL Green Realty Corp.

109,558

1,252

114,783

536

-

Sunstone Hotel Investors, Inc.

20,161

3,063

14,730

-

-

Total

$ 235,326

$ 33,524

$ 204,334

$ 5,302

$ -

Other Information

The following is a summary of the inputs used, as of April 30, 2010, 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:

Common Stocks

$ 3,208,590

$ 3,208,590

$ -

$ -

Convertible Preferred Stocks

5,900

-

5,900

-

Money Market Funds

163,196

163,196

-

-

Total Investments in Securities:

$ 3,377,686

$ 3,371,786

$ 5,900

$ -

Income Tax Information

At April 30, 2010, the cost of investment securities for income tax purposes was $3,284,287,000. Net unrealized appreciation aggregated $93,399,000, of which $636,153,000 related to appreciated investment securities and $542,754,000 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. 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. Factors used in determining value may include market or security specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value calculation under these procedures may differ from published prices for the same securities. 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 an independent pricing service 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 significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts, futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. Utilizing these techniques may result in transfers between Level 1 and Level 2. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are 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. 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 and are categorized as Level 2 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

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:

June 29, 2010

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:

June 29, 2010

By:

/s/Christine Reynolds

 

Christine Reynolds

 

Chief Financial Officer

 

 

Date:

June 29, 2010