N-CSRS 1 main.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811- 3221

Fidelity Charles Street Trust
(Exact name of registrant as specified in charter)

82 Devonshire St., Boston, Massachusetts 02109
(Address of principal executive offices) (Zip code)

Eric D. Roiter, 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:	September 30

Date of reporting period:	March 31, 2004

Item 1. Reports to Stockholders

Fidelity®

Asset Manager: Aggressive®

Semiannual Report

March 31, 2004

(2_fidelity_logos) (Registered_Trademark)

Chairman's Message	<Click Here>	Ned Johnson's message to shareholders.
Investment Changes	<Click Here>	A summary of the fund's investments.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.

For a free copy of the fund's proxy voting guidelines visit www.fidelity.com/goto/proxyguidelines, call 1-800-544-8544, or visit the Securities and Exchange Commission (SEC)'s web site at www.sec.gov.

Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.

Other third party marks appearing herein are the property of their respective owners.

All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.

(Recycle graphic) This report is printed on recycled paper using soy-based inks.

This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.

Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.

Neither the fund nor Fidelity Distributors Corporation is a bank.

For more information on any Fidelity fund, including charges and expenses, call 1-800-544-6666 for a free prospectus. Read it carefully before you invest or send money.

Chairman's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

Many of you have read or heard news stories recently that were critical of mutual funds and made allegations that the mutual fund industry has been less than forthright. I find these reports unsettling and not necessarily an accurate picture of the overall industry, and I would like you to know where we at Fidelity stand.

With specific regard to allegations that certain mutual fund companies were violating the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities, I want to say two things:

First, Fidelity does not have agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not to say that someone could not deceive the company through fraudulent acts. But I underscore that we have no so-called "agreements" which would permit this illegal practice.

Second, Fidelity has been on record for years opposing predatory short-term trading which adversely affects other shareholders in a mutual fund. In fact, in the 1980s, we began charging a fee - which is returned to the fund and, therefore, to investors - to discourage this activity. What's more, several years ago we took the industry lead in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. It is reasonable to assume that another structure can be developed that would alter the system to make it much more difficult for predatory traders to operate. This, however, will only be achieved through close cooperation among regulators, legislators and the industry.

Certainly no industry is perfect, and there have been instances of unethical and illegal activity from time to time within the mutual fund industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. Clearly, every system can be improved. We applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings. But we remain concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems.

For more than 57 years, Fidelity Investments has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Many of them were family and friends. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.

Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.

Best regards,

/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Semiannual Report

Investment Changes

Top Ten Stocks as of March 31, 2004
	% of fund's net assets	% of fund's net assets 6 months ago
Motorola, Inc.	4.0	4.2
Genentech, Inc.	2.7	1.8
Liberty Media Corp. Class A	2.3	3.4
Pfizer, Inc.	2.3	0.2
Univision Communications, Inc. Class A	2.2	2.1
KDDI Corp.	2.0	0.7
Phelps Dodge Corp.	1.8	0.1
Whole Foods Market, Inc.	1.6	0.4
Apache Corp.	1.5	0.0
Zimmer Holdings, Inc.	1.4	1.3
	21.8
Market Sectors as of March 31, 2004
(stocks only)	% of fund's net assets	% of fund's net assets 6 months ago
Information Technology	18.1	35.2
Health Care	16.0	10.2
Consumer Discretionary	15.9	24.1
Financials	10.0	10.8
Energy	6.7	3.1
Materials	6.2	2.2
Industrials	4.5	3.4
Telecommunication Services	3.8	1.5
Consumer Staples	3.1	2.7
Utilities	0.1	0.2

Asset Allocation (% of fund's net assets)
As of March 31, 2004*			As of September 30, 2003 **
	Stock class and Equity futures 87.4%			Stock class 93.1%
	Bond class 9.5%			Bond class 7.1%
	Short-term class 3.1%			Short-term class*** (0.2)%
* Foreign investments		19.9%	** Foreign investments		24.5%

Asset allocations in the pie charts reflect the categorization of assets as defined in the fund's prospectus in effect as of the time periods indicated above. Financial Statement categorizations conform to accounting standards and will differ from the pie chart. Percentages are adjusted for the effect of futures contracts and swap contracts, if applicable.

*** Short-term class is not included in the pie chart.

Semiannual Report

Investments March 31, 2004 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 84.3%
	Shares		Value (Note 1)
CONSUMER DISCRETIONARY - 15.8%
Auto Components - 0.3%
NOK Corp.	25,000		$ 920,687
Hotels, Restaurants & Leisure - 1.9%
McDonald's Corp.	76,300		2,179,891
Royal Caribbean Cruises Ltd.	40,500		1,786,050
Starbucks Corp. (a)	74,100		2,797,275
			6,763,216
Household Durables - 1.4%
Beazer Homes USA, Inc.	6,000		635,460
D.R. Horton, Inc.	17,700		627,111
Daito Trust Construction Co.	27,300		1,062,990
George Wimpey PLC	71,800		579,828
Lennar Corp.:
Class A	19,460		1,051,424
Class B	5,420		275,932
Maytag Corp.	22,400		707,168
			4,939,913
Internet & Catalog Retail - 0.8%
Amazon.com, Inc. (a)	11,100		480,408
eBay, Inc. (a)	11,500		797,295
InterActiveCorp (a)	40,184		1,269,413
Senshukai Co. Ltd.	42,000		483,361
			3,030,477
Media - 9.6%
British Sky Broadcasting Group PLC (BSkyB) sponsored ADR	51,900		2,645,343
Cablevision Systems Corp. - NY Group Class A (a)	16,800		384,384
Clear Channel Communications, Inc.	12,300		520,905
Comcast Corp.:
Class A (a)	15,036		432,135
Class A (special) (a)	4,700		131,036
EchoStar Communications Corp. Class A (a)	24,400		799,100
Fox Entertainment Group, Inc. Class A (a)	12,300		333,330
Lamar Advertising Co. Class A (a)	12,400		498,728
Liberty Media Corp. Class A (a)	749,210		8,203,850
News Corp. Ltd.:
ADR	28,900		1,039,822
sponsored ADR	5,312		168,444
NTL, Inc. (a)	19,564		1,163,080
Playboy Enterprises, Inc. Class B (non-vtg.) (a)	164,500		2,306,290
Radio One, Inc.:
Class A (a)	24,100		447,778
Common Stocks - continued
	Shares		Value (Note 1)
CONSUMER DISCRETIONARY - continued
Media - continued
Radio One, Inc.: - continued
Class D (non-vtg.) (a)	54,200		$ 1,002,700
The DIRECTV Group, Inc. (a)	47,499		730,535
Time Warner, Inc. (a)	187,800		3,166,308
Univision Communications, Inc. Class A (a)	233,400		7,704,534
Viacom, Inc. Class B (non-vtg.)	50,700		1,987,947
Walt Disney Co.	25,150		628,499
			34,294,748
Multiline Retail - 0.1%
Barneys, Inc. warrants 4/1/08 (a)	30		750
Nordstrom, Inc.	10,400		414,960
			415,710
Specialty Retail - 1.5%
CarMax, Inc. (a)	10,500		306,600
Gap, Inc.	48,700		1,067,504
Home Depot, Inc.	64,900		2,424,664
Toys 'R' Us, Inc. (a)	71,700		1,204,560
Yamada Denki Co. Ltd.	9,300		363,009
			5,366,337
Textiles Apparel & Luxury Goods - 0.2%
NIKE, Inc. Class B	11,500		895,505
TOTAL CONSUMER DISCRETIONARY			56,626,593
CONSUMER STAPLES - 3.1%
Beverages - 0.3%
Robert Mondavi Corp. Class A (a)	13,300		502,873
The Coca-Cola Co.	12,400		623,720
			1,126,593
Food & Staples Retailing - 1.9%
Rite Aid Corp. (a)	39,000		212,160
Sysco Corp.	17,300		675,565
Whole Foods Market, Inc.	77,600		5,816,120
			6,703,845
Food Products - 0.5%
McCormick & Co., Inc. (non-vtg.)	47,200		1,582,144
Tyson Foods, Inc. Class A	7,800		140,790
			1,722,934
Common Stocks - continued
	Shares		Value (Note 1)
CONSUMER STAPLES - continued
Personal Products - 0.2%
Avon Products, Inc.	10,200		$ 773,874
Tobacco - 0.2%
Altria Group, Inc.	12,800		696,960
TOTAL CONSUMER STAPLES			11,024,206
ENERGY - 6.7%
Energy Equipment & Services - 3.3%
BJ Services Co. (a)	20,900		904,343
Carbo Ceramics, Inc.	28,870		1,817,367
ENSCO International, Inc.	90,840		2,558,963
GlobalSantaFe Corp.	12,400		344,348
Grant Prideco, Inc. (a)	4,800		74,400
Maverick Tube Corp. (a)	30,900		727,695
Nabors Industries Ltd. (a)	5,200		237,900
Noble Corp. (a)	113,900		4,376,038
Pride International, Inc. (a)	25,700		438,442
Transocean, Inc. (a)	8,800		245,432
			11,724,928
Oil & Gas - 3.4%
Apache Corp.	119,700		5,167,449
Burlington Resources, Inc.	11,500		731,745
Chesapeake Energy Corp.	12,900		172,860
Cross Timbers Royalty Trust	99		2,807
EOG Resources, Inc.	9,000		413,010
Pioneer Natural Resources Co.	19,100		616,930
Teekay Shipping Corp.	11,100		764,790
Total SA sponsored ADR	20,100		1,849,200
Valero Energy Corp.	32,090		1,924,116
XTO Energy, Inc.	16,750		422,770
			12,065,677
TOTAL ENERGY			23,790,605
FINANCIALS - 10.0%
Capital Markets - 2.5%
3i Group PLC	25,800		299,548
Ameritrade Holding Corp. (a)	60,450		930,930
Charles Schwab Corp.	96,100		1,115,721
Daiwa Securities Group, Inc.	41,000		334,228
Common Stocks - continued
	Shares		Value (Note 1)
FINANCIALS - continued
Capital Markets - continued
Goldman Sachs Group, Inc.	24,600		$ 2,567,010
JAFCO Co. Ltd.	8,000		780,282
Merrill Lynch & Co., Inc.	31,700		1,888,052
Morgan Stanley	11,500		658,950
Nomura Holdings, Inc.	24,000		437,760
			9,012,481
Commercial Banks - 3.2%
Mitsubishi Tokyo Financial Group, Inc. (MTFG)	294		2,919,420
Mizuho Financial Group, Inc. (a)	722		3,102,100
Sumitomo Mitsui Financial Group, Inc.	372		2,747,099
UFJ Holdings, Inc. (a)	407		2,584,003
			11,352,622
Diversified Financial Services - 0.2%
Quanta Capital Holdings Ltd. (e)	64,400		805,000
Insurance - 2.4%
ACE Ltd.	53,900		2,299,374
Allstate Corp.	29,600		1,345,616
Axis Capital Holdings Ltd.	13,100		387,105
Millea Holdings, Inc.	138		2,144,049
Progressive Corp.	20,500		1,795,800
Sun Life Financial, Inc.	8,000		214,790
XL Capital Ltd. Class A	5,800		441,032
			8,627,766
Real Estate - 1.0%
Alexandria Real Estate Equities, Inc.	11,800		743,400
Apartment Investment & Management Co. Class A	15,300		475,677
Friedman, Billings, Ramsey Group, Inc. Class A	61,400		1,657,186
LNR Property Corp.	5,600		299,768
Mitsubishi Estate Co. Ltd.	16,000		216,515
			3,392,546
Thrifts & Mortgage Finance - 0.7%
Fannie Mae	10,100		750,935
Freddie Mac	400		23,624
Golden West Financial Corp., Delaware	11,500		1,287,425
Sovereign Bancorp, Inc.	22,400		479,808
			2,541,792
TOTAL FINANCIALS			35,732,207
Common Stocks - continued
	Shares		Value (Note 1)
HEALTH CARE - 16.0%
Biotechnology - 3.7%
Biogen Idec, Inc. (a)	30,100		$ 1,673,560
Genentech, Inc. (a)	93,100		9,851,842
Millennium Pharmaceuticals, Inc. (a)	113,600		1,919,840
			13,445,242
Health Care Equipment & Supplies - 4.4%
Apogent Technologies, Inc. (a)	26,000		797,680
Biomet, Inc.	41,190		1,580,048
Boston Scientific Corp. (a)	11,500		487,370
Fisher Scientific International, Inc. (a)	28,900		1,590,656
Medtronic, Inc.	35,400		1,690,350
St. Jude Medical, Inc. (a)	54,000		3,893,400
Stryker Corp.	5,800		513,474
Zimmer Holdings, Inc. (a)	68,500		5,053,930
			15,606,908
Health Care Providers & Services - 1.8%
Aetna, Inc.	18,800		1,686,736
Cardinal Health, Inc.	7,000		482,300
HCA, Inc.	10,730		435,853
Health Management Associates, Inc. Class A	9,300		215,853
IMS Health, Inc.	10,400		241,904
Tenet Healthcare Corp. (a)	29,300		326,988
UnitedHealth Group, Inc.	47,000		3,028,680
			6,418,314
Pharmaceuticals - 6.1%
Allergan, Inc.	16,200		1,363,392
Barr Pharmaceuticals, Inc. (a)	22,500		1,032,750
Johnson & Johnson	81,500		4,133,680
Merck & Co., Inc.	96,700		4,273,173
Pfizer, Inc.	230,800		8,089,540
Roche Holding AG (participation certificate)	5,610		548,761
Teva Pharmaceutical Industries Ltd. sponsored ADR	11,600		735,556
Watson Pharmaceuticals, Inc. (a)	38,000		1,626,020
			21,802,872
TOTAL HEALTH CARE			57,273,336
INDUSTRIALS - 4.5%
Aerospace & Defense - 0.3%
Boeing Co.	28,000		1,149,960
Common Stocks - continued
	Shares		Value (Note 1)
INDUSTRIALS - continued
Air Freight & Logistics - 1.6%
FedEx Corp.	66,650		$ 5,009,414
United Parcel Service, Inc. Class B	11,200		782,208
			5,791,622
Airlines - 0.0%
JetBlue Airways Corp. (a)	750		18,968
Commercial Services & Supplies - 1.8%
Adecco SA sponsored ADR	26,300		363,992
Cintas Corp.	16,300		708,887
Corinthian Colleges, Inc. (a)	13,600		449,616
Hudson Highland Group, Inc. (a)	3,427		95,545
Monster Worldwide, Inc. (a)	35,100		919,620
Republic Services, Inc.	19,600		530,572
Robert Half International, Inc. (a)	77,300		1,825,826
Waste Management, Inc.	46,100		1,391,298
			6,285,356
Machinery - 0.8%
Caterpillar, Inc.	32,470		2,567,403
THK Co. Ltd.	17,000		335,044
			2,902,447
TOTAL INDUSTRIALS			16,148,353
INFORMATION TECHNOLOGY - 18.1%
Communications Equipment - 6.4%
Avaya, Inc. (a)	26,000		412,880
Cable Design Technologies Corp. (a)	55,700		528,036
Cisco Systems, Inc. (a)	121,700		2,862,384
Comverse Technology, Inc. (a)	19,900		360,986
Juniper Networks, Inc. (a)	32,400		842,724
Motorola, Inc.	807,500		14,211,983
Nokia Corp. sponsored ADR	177,200		3,593,616
			22,812,609
Computers & Peripherals - 1.6%
Dell, Inc. (a)	88,600		2,978,732
EMC Corp. (a)	130,000		1,769,300
Hewlett-Packard Co.	6,500		148,460
Seagate Technology	34,510		556,646
Sun Microsystems, Inc. (a)	67,500		280,800
			5,733,938
Common Stocks - continued
	Shares		Value (Note 1)
INFORMATION TECHNOLOGY - continued
Electronic Equipment & Instruments - 1.2%
Amphenol Corp. Class A (a)	41,600		$ 1,235,520
Celestica, Inc. (sub. vtg.) (a)	6,600		107,479
Molex, Inc.	15,000		455,850
Nichicon Corp.	59,700		741,455
Solectron Corp. (a)	65,900		364,427
Tech Data Corp. (a)	4,100		167,854
Vishay Intertechnology, Inc. (a)	59,060		1,260,340
			4,332,925
Internet Software & Services - 1.6%
Homestore, Inc. (a)	157,400		665,802
Softbank Corp.	50,300		2,349,295
Yahoo Japan Corp. New (a)	224		2,642,371
			5,657,468
IT Services - 0.6%
Affiliated Computer Services, Inc. Class A (a)	6,600		342,540
Ceridian Corp. (a)	57,600		1,135,296
DST Systems, Inc. (a)	12,900		585,015
Pegasus Solutions, Inc. (a)	12,746		148,873
			2,211,724
Office Electronics - 0.2%
Konica Minolta Holdings, Inc.	47,000		670,720
Semiconductors & Semiconductor Equipment - 4.5%
Agere Systems, Inc. Class B (a)	67,200		209,664
Analog Devices, Inc.	22,900		1,099,429
ASML Holding NV (NY Shares) (a)	18,500		339,105
Intel Corp.	11,220		305,184
Intersil Corp. Class A	36,200		806,898
KLA-Tencor Corp. (a)	27,900		1,404,765
Marvell Technology Group Ltd. (a)	6,600		297,330
Microchip Technology, Inc.	10,400		276,224
Micron Technology, Inc. (a)	35,400		591,534
Novellus Systems, Inc. (a)	8,100		257,499
Samsung Electronics Co. Ltd.	8,990		4,498,934
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR (a)	22,020		229,889
Teradyne, Inc. (a)	167,670		3,995,576
Texas Instruments, Inc.	28,800		841,536
Xilinx, Inc. (a)	20,700		786,600
			15,940,167
Common Stocks - continued
	Shares		Value (Note 1)
INFORMATION TECHNOLOGY - continued
Software - 2.0%
BEA Systems, Inc. (a)	229,500		$ 2,928,420
BMC Software, Inc. (a)	10,400		203,320
Mercury Interactive Corp. (a)	25,100		1,124,480
Microsoft Corp.	53,700		1,340,889
Network Associates, Inc. (a)	6,400		115,200
Nippon System Development Co. Ltd.	10,100		220,850
Oracle Corp. (a)	103,400		1,241,834
			7,174,993
TOTAL INFORMATION TECHNOLOGY			64,534,544
MATERIALS - 6.2%
Chemicals - 1.5%
BOC Group PLC	3,400		56,514
Dow Chemical Co.	70,750		2,849,810
Lyondell Chemical Co.	63,100		936,404
Nitto Denko Corp.	24,700		1,354,982
Praxair, Inc.	6,000		222,720
			5,420,430
Construction Materials - 0.3%
Martin Marietta Materials, Inc.	18,500		853,960
Containers & Packaging - 0.3%
Pactiv Corp. (a)	34,900		776,525
Sealed Air Corp. (a)	5,200		258,596
			1,035,121
Metals & Mining - 4.1%
Alcan, Inc.	4,352		193,492
Alcoa, Inc.	55,600		1,928,764
Inco Ltd. (a)	88,580		3,049,171
Newmont Mining Corp.	32,100		1,496,823
Nucor Corp.	15,800		971,384
Peabody Energy Corp.	15,100		702,301
Phelps Dodge Corp. (a)	78,600		6,418,476
			14,760,411
TOTAL MATERIALS			22,069,922
Common Stocks - continued
	Shares		Value (Note 1)
TELECOMMUNICATION SERVICES - 3.8%
Diversified Telecommunication Services - 1.4%
Citizens Communications Co. (a)	66,300		$ 857,922
SBC Communications, Inc.	175,300		4,301,862
			5,159,784
Wireless Telecommunication Services - 2.4%
KDDI Corp.	1,250		7,037,019
Nextel Communications, Inc. Class A (a)	50,100		1,238,973
NTT DoCoMo, Inc.	109		241,544
			8,517,536
TOTAL TELECOMMUNICATION SERVICES			13,677,320
UTILITIES - 0.1%
Electric Utilities - 0.0%
Edison International	6,700		162,743
Multi-Utilities & Unregulated Power - 0.1%
Equitable Resources, Inc.	6,200		275,404
TOTAL UTILITIES			438,147
TOTAL COMMON STOCKS (Cost $249,660,052)		301,315,233
Nonconvertible Preferred Stocks - 0.1%

CONSUMER DISCRETIONARY - 0.1%
Media - 0.1%
CSC Holdings, Inc.:
(depositary shares) Series M, 11.125%	545		56,816
Series H, 11.75%	835		87,153
Granite Broadcasting Corp. 12.75% pay-in-kind	110		53,900
			197,869
FINANCIALS - 0.0%
Commercial Banks - 0.0%
Chevy Chase Bank FSB Series C, 8.00%	445		12,683
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $225,396)		210,552

Nonconvertible Bonds - 9.4%
	Principal Amount		Value (Note 1)
CONSUMER DISCRETIONARY - 2.1%
Auto Components - 0.1%
Dana Corp. 6.5% 3/1/09	$ 35,000		$ 37,275
Stoneridge, Inc. 11.5% 5/1/12	15,000		17,850
United Components, Inc. 9.375% 6/15/13	45,000		48,600
Visteon Corp. 7% 3/10/14	60,000		59,453
			163,178
Hotels, Restaurants & Leisure - 0.6%
Argosy Gaming Co. 7% 1/15/14 (e)	180,000		187,650
Bally Total Fitness Holding Corp.:
9.875% 10/15/07	10,000		8,150
10.5% 7/15/11	40,000		37,300
Boyd Gaming Corp.:
7.75% 12/15/12	50,000		53,625
8.75% 4/15/12	130,000		143,000
Chumash Casino & Resort Enterprise 9% 7/15/10 (e)	85,000		93,925
Circus Circus Enterprises, Inc. 7.625% 7/15/13	10,000		10,900
Friendly Ice Cream Corp. 8.375% 6/15/12 (e)	70,000		71,750
Host Marriott LP 7.125% 11/1/13	120,000		124,200
ITT Corp. 7.375% 11/15/15	110,000		118,800
Mandalay Resort Group 9.375% 2/15/10	20,000		23,800
MGM MIRAGE:
5.875% 2/27/14	60,000		59,925
5.875% 2/27/14 (e)	80,000		79,900
MTR Gaming Group, Inc. 9.75% 4/1/10	30,000		32,100
Park Place Entertainment Corp. 7.875% 3/15/10	60,000		66,900
Royal Caribbean Cruises Ltd. 6.875% 12/1/13	135,000		141,075
Six Flags, Inc.:
8.875% 2/1/10	125,000		128,750
9.75% 4/15/13	100,000		105,750
Station Casinos, Inc.:
6% 4/1/12 (e)	120,000		123,300
6.5% 2/1/14 (e)	180,000		180,900
Sun International Hotels Ltd./Sun International North America, Inc. 8.875% 8/15/11	55,000		60,775
Town Sports International Holdings, Inc. 0% 2/1/14 (d)(e)	185,000		98,975
Town Sports International, Inc. 9.625% 4/15/11	75,000		79,125
Venetian Casino Resort LLC/Las Vegas Sands, Inc. 11% 6/15/10	100,000		114,750
Wheeling Island Gaming, Inc. 10.125% 12/15/09	100,000		108,000
			2,253,325
Nonconvertible Bonds - continued
	Principal Amount		Value (Note 1)
CONSUMER DISCRETIONARY - continued
Household Durables - 0.4%
Beazer Homes USA, Inc. 6.5% 11/15/13 (e)	$ 95,000		$ 99,750
D.R. Horton, Inc. 6.875% 5/1/13	50,000		55,250
Juno Lighting, Inc. 11.875% 7/1/09	75,000		80,438
K. Hovnanian Enterprises, Inc.:
6.5% 1/15/14	20,000		20,450
8.875% 4/1/12	115,000		129,375
KB Home 7.75% 2/1/10	85,000		91,800
Sealy Mattress Co. 8.25% 6/15/14 (e)	100,000		100,000
Standard Pacific Corp.:
5.125% 4/1/09	60,000		59,850
6.875% 5/15/11	20,000		21,200
9.25% 4/15/12	45,000		52,650
Technical Olympic USA, Inc.:
7.5% 3/15/11 (e)	60,000		60,000
10.375% 7/1/12	100,000		112,500
WCI Communities, Inc. 7.875% 10/1/13	145,000		155,150
William Lyon Homes, Inc.:
7.5% 2/15/14 (e)	50,000		51,750
10.75% 4/1/13	190,000		224,675
			1,314,838
Leisure Equipment & Products - 0.0%
The Hockey Co. 11.25% 4/15/09	145,000		162,400
Media - 0.7%
AMC Entertainment, Inc.:
8% 3/1/14 (e)	170,000		168,725
9.5% 2/1/11	61,000		63,898
Cablevision Systems Corp.:
5.66% 4/1/09 (e)(g)	120,000		120,000
8% 4/15/12 (e)	120,000		120,000
Cinemark, Inc. 0% 3/15/14 (d)(e)	140,000		87,325
Corus Entertainment, Inc. 8.75% 3/1/12	150,000		165,000
CSC Holdings, Inc. 7.875% 2/15/18	210,000		225,225
Granite Broadcasting Corp. 9.75% 12/1/10 (e)	40,000		38,800
Gray Television, Inc. 9.25% 12/15/11	175,000		194,250
Houghton Mifflin Co.:
0% 10/15/13 (d)(e)	30,000		16,350
8.25% 2/1/11	80,000		82,000
9.875% 2/1/13	75,000		77,250
Innova S. de R.L. 9.375% 9/19/13	55,000		59,950
LBI Media Holdings, Inc. 0% 10/15/13 (d)	150,000		105,000
Nonconvertible Bonds - continued
	Principal Amount		Value (Note 1)
CONSUMER DISCRETIONARY - continued
Media - continued
LBI Media, Inc. 10.125% 7/15/12	$ 55,000		$ 62,838
Nexstar Finance Holdings LLC/Nexstar Finance Holdings, Inc. 0% 4/1/13 (d)	110,000		80,575
PEI Holdings, Inc. 11% 3/15/10	95,000		109,725
Reader's Digest Association, Inc. 6.5% 3/1/11 (e)	90,000		92,700
Rogers Cable, Inc. 6.25% 6/15/13	50,000		51,125
Sinclair Broadcast Group, Inc. 8% 3/15/12	145,000		157,144
Spanish Broadcasting System, Inc. 9.625% 11/1/09	20,000		21,150
Telewest PLC 11% 10/1/07 (c)	180,000		113,400
TV Azteca SA de CV yankee 10.5% 2/15/07	40,000		41,200
Videotron LTEE 6.875% 1/15/14	95,000		98,800
			2,352,430
Multiline Retail - 0.0%
Barneys, Inc. 9% 4/1/08	130,000		133,900
Specialty Retail - 0.3%
Asbury Automotive Group, Inc. 9% 6/15/12	260,000		275,600
AutoNation, Inc. 9% 8/1/08	45,000		52,425
J. Crew Intermediate LLC 0% 5/15/08 (d)	46,743		35,992
Nebraska Book Co., Inc. 8.625% 3/15/12 (e)	100,000		103,000
Sonic Automotive, Inc. 8.625% 8/15/13	65,000		70,363
Toys 'R' US, Inc. 7.875% 4/15/13	210,000		219,975
United Rentals North America, Inc.:
6.5% 2/15/12 (e)	150,000		148,500
7% 2/15/14 (e)	100,000		94,000
7.75% 11/15/13 (e)	140,000		135,800
			1,135,655
Textiles Apparel & Luxury Goods - 0.0%
Levi Strauss & Co.:
7% 11/1/06	50,000		37,250
11.625% 1/15/08	55,000		42,075
12.25% 12/15/12	45,000		33,975
			113,300
TOTAL CONSUMER DISCRETIONARY			7,629,026
CONSUMER STAPLES - 0.3%
Food & Staples Retailing - 0.1%
Rite Aid Corp.:
6% 12/15/05 (e)	75,000		74,250
Nonconvertible Bonds - continued
	Principal Amount		Value (Note 1)
CONSUMER STAPLES - continued
Food & Staples Retailing - continued
Rite Aid Corp.: - continued
6.875% 8/15/13	$ 75,000		$ 68,625
9.25% 6/1/13	185,000		195,175
9.5% 2/15/11	65,000		72,800
			410,850
Food Products - 0.2%
Del Monte Corp. 9.25% 5/15/11	20,000		22,250
Delaware Monte Corp. 8.625% 12/15/12	150,000		168,375
Doane Pet Care Co. 9.75% 5/15/07	135,000		117,450
Dole Food Co., Inc. 7.25% 6/15/10	45,000		45,900
Smithfield Foods, Inc.:
7.625% 2/15/08	135,000		144,450
7.75% 5/15/13	25,000		27,375
8% 10/15/09	15,000		16,575
United Agriculture Products, Inc. 8.25% 12/15/11 (e)	65,000		67,925
			610,300
TOTAL CONSUMER STAPLES			1,021,150
ENERGY - 0.6%
Energy Equipment & Services - 0.1%
Grant Prideco, Inc. 9% 12/15/09	100,000		112,500
Hanover Compressor Co.:
0% 3/31/07	50,000		38,250
8.625% 12/15/10	20,000		21,500
Key Energy Services, Inc. 8.375% 3/1/08	100,000		105,500
SESI LLC 8.875% 5/15/11	70,000		77,000
			354,750
Oil & Gas - 0.5%
Chesapeake Energy Corp.:
6.875% 1/15/16	46,000		48,300
7.5% 9/15/13	200,000		219,500
8.375% 11/1/08	70,000		77,000
El Paso Production Holding Co. 7.75% 6/1/13	135,000		125,550
General Maritime Corp. 10% 3/15/13	235,000		263,200
Overseas Shipholding Group, Inc.:
7.5% 2/15/24	25,000		25,313
8.25% 3/15/13	175,000		192,500
Pecom Energia SA 9% 5/1/09 (Reg. S)	100,000		105,500
Nonconvertible Bonds - continued
	Principal Amount		Value (Note 1)
ENERGY - continued
Oil & Gas - continued
Petrobras International Finance Co. Ltd. 8.375% 12/10/18	$ 70,000		$ 70,770
Plains Exploration & Production Co. LP Series B, 8.75% 7/1/12	40,000		44,800
Range Resources Corp. 7.375% 7/15/13	40,000		41,600
Teekay Shipping Corp. 8.875% 7/15/11	215,000		249,400
The Coastal Corp.:
6.375% 2/1/09	50,000		41,250
6.5% 6/1/08	120,000		101,100
7.5% 8/15/06	75,000		69,750
7.75% 6/15/10	70,000		60,550
			1,736,083
TOTAL ENERGY			2,090,833
FINANCIALS - 1.4%
Commercial Banks - 0.0%
Chevy Chase Bank FSB 6.875% 12/1/13	130,000		134,550
Diversified Financial Services - 1.2%
Ahold Finance USA, Inc.:
6.25% 5/1/09	160,000		163,200
8.25% 7/15/10	30,000		33,000
American Airlines, Inc. pass thru trust certificates:
6.817% 5/23/11	130,000		118,950
6.977% 11/23/22	8,044		7,280
7.324% 4/15/11	30,000		26,100
7.377% 5/23/19	141,884		107,832
7.379% 5/23/16	107,745		81,886
7.8% 4/1/08	70,000		65,450
8.608% 10/1/12	15,000		14,100
American Tower Escrow Corp. 0% 8/1/08 (d)	30,000		21,075
Arch Western Finance LLC 6.75% 7/1/13 (e)	85,000		90,100
Cellu Tissue Holdings, Inc. 9.75% 3/15/10 (e)	60,000		59,400
Charter Communications Holding II LLC/Charter Communications Holdings II Capital Corp. 10.25% 9/15/10 (e)	30,000		31,050
Charter Communications Holdings LLC/Charter Communications Holdings Capital Corp. 8.625% 4/1/09	50,000		41,625
Continental Airlines, Inc. pass thru trust certificates:
6.748% 9/15/18	7,744		6,583
Nonconvertible Bonds - continued
	Principal Amount		Value (Note 1)
FINANCIALS - continued
Diversified Financial Services - continued
Continental Airlines, Inc. pass thru trust certificates: - continued
6.795% 8/2/18	$ 28,398		$ 24,423
6.9% 1/2/17	52,208		43,855
6.954% 2/2/11	12,383		10,526
7.73% 9/15/12	11,701		9,478
7.82% 4/15/15	25,158		21,385
8.307% 4/2/18	18,606		16,746
8.321% 11/1/06	5,000		4,700
Dana Credit Corp. 8.375% 8/15/07 (e)	35,000		38,500
Delta Air Lines, Inc. pass thru trust certificates:
7.299% 9/18/06	20,000		16,800
7.779% 1/2/12	25,045		19,034
Dex Media West LLC/Dex Media West Finance Co.:
8.5% 8/15/10 (e)	30,000		33,000
9.875% 8/15/13 (e)	30,000		33,300
FIMEP SA 10.5% 2/15/13	120,000		139,500
Gerdau AmeriSteel Corp./GUSAP Partners 10.375% 7/15/11	185,000		209,975
Hilcorp Energy I LP/Hilcorp Finance Co. 10.5% 9/1/10 (e)	160,000		177,600
IOS Capital LLC 7.25% 6/30/08	35,000		38,413
Ispat Inland ULC 9.75% 4/1/14 (e)	160,000		165,600
Jostens Holding Corp. 0% 12/1/13 (d)	215,000		144,050
Leucadia National Corp.:
7% 8/15/13	160,000		165,600
7% 8/15/13 (e)	50,000		51,750
Level 3 Financing, Inc. 10.75% 10/15/11 (e)	45,000		43,650
Midland Funding Corp. II 11.75% 7/23/05	27,493		29,005
Mobile Telesystems Finance SA 8.375% 10/14/10 (e)	10,000		10,400
MSW Energy Holding LLC/MSW Energy Finance Co., Inc. 8.5% 9/1/10	20,000		22,000
MSW Energy Holdings II LLC/MSW Finance Co. II, Inc. 7.375% 9/1/10 (e)	40,000		42,400
Nalco Finance Holdings LLC/Nalco Finance Holdings, Inc. 0% 2/1/14 (d)(e)	125,000		75,000
National Beef Packing Co. LLC/National Beef Finance Corp. 10.5% 8/1/11 (e)	170,000		175,100
Nexstar Finance, Inc. 7% 1/15/14 (e)	30,000		29,625
Northern Telecom Capital Corp.:
7.4% 6/15/06	50,000		52,250
7.875% 6/15/26	35,000		36,400
Nonconvertible Bonds - continued
	Principal Amount		Value (Note 1)
FINANCIALS - continued
Diversified Financial Services - continued
Northwest Airlines, Inc. pass thru trust certificates:
7.068% 7/2/17	$ 20,630		$ 17,948
7.67% 1/2/15	8,597		7,566
Qwest Capital Funding, Inc.:
7% 8/3/09	180,000		158,400
7.25% 2/15/11	70,000		60,200
7.75% 8/15/06	50,000		50,250
Sensus Metering Systems, Inc. 8.625% 12/15/13 (e)	110,000		108,350
Ship Finance International Ltd. 8.5% 12/15/13 (e)	230,000		227,125
TIG Capital Trust I 8.597% 1/15/27 (e)	150,000		130,500
TRW Automotive Acquisition Corp.:
9.375% 2/15/13	127,000		146,050
11% 2/15/13	7,000		8,330
U.S. West Capital Funding, Inc. 6.375% 7/15/08	40,000		35,600
UAP Holding Corp. 0% 7/15/12 (d)(e)	70,000		47,250
Universal City Development Partners Ltd./UCDP Finance, Inc. 11.75% 4/1/10	165,000		191,400
Western Financial Bank 9.625% 5/15/12	190,000		216,600
WH Holdings Ltd./WH Capital Corp. 9.5% 4/1/11 (e)	30,000		31,350
Xerox Capital Trust I 8% 2/1/27	190,000		187,150
			4,371,765
Insurance - 0.1%
Crum & Forster Holdings Corp. 10.375% 6/15/13 (e)	170,000		191,250
Real Estate - 0.1%
iStar Financial, Inc. 6.5% 12/15/13	40,000		42,100
La Quinta Properties, Inc. 8.875% 3/15/11	100,000		112,875
LNR Property Corp.:
7.25% 10/15/13 (e)	55,000		57,475
7.625% 7/15/13	25,000		26,750
Omega Healthcare Investors, Inc. 7% 4/1/14 (e)	80,000		82,000
Senior Housing Properties Trust:
7.875% 4/15/15	40,000		43,200
8.625% 1/15/12	70,000		79,450
			443,850
TOTAL FINANCIALS			5,141,415
Nonconvertible Bonds - continued
	Principal Amount		Value (Note 1)
HEALTH CARE - 0.4%
Health Care Equipment & Supplies - 0.0%
Fisher Scientific International, Inc. 8% 9/1/13	$ 40,000		$ 44,600
Health Care Providers & Services - 0.4%
AmeriPath, Inc. 10.5% 4/1/13 (e)	80,000		81,600
AmerisourceBergen Corp. 7.25% 11/15/12	160,000		175,200
Concentra Operating Corp. 9.5% 8/15/10	130,000		144,950
Genesis HealthCare Corp. 8% 10/15/13 (e)	175,000		185,063
Mariner Health Care, Inc. 8.25% 12/15/13 (e)	295,000		300,900
PacifiCare Health Systems, Inc. 10.75% 6/1/09	62,000		72,540
Psychiatric Solutions, Inc. 10.625% 6/15/13	100,000		114,250
Tenet Healthcare Corp. 7.375% 2/1/13	155,000		139,113
			1,213,616
Pharmaceuticals - 0.0%
Biovail Corp. yankee 7.875% 4/1/10	90,000		87,300
TOTAL HEALTH CARE			1,345,516
INDUSTRIALS - 0.9%
Aerospace & Defense - 0.1%
BE Aerospace, Inc.:
8% 3/1/08	120,000		108,000
9.5% 11/1/08	160,000		153,600
Orbital Sciences Corp. 9% 7/15/11	165,000		181,088
			442,688
Airlines - 0.2%
AMR Corp.:
9% 8/1/12	135,000		114,750
10.2% 3/15/20	35,000		28,175
Continental Airlines, Inc.:
7.875% 7/2/18	60,000		59,550
8% 12/15/05	50,000		46,500
Delta Air Lines, Inc. 7.9% 12/15/09	180,000		119,700
Northwest Airlines Corp. 10% 2/1/09	135,000		110,700
			479,375
Building Products - 0.1%
FastenTech, Inc. 11.5% 5/1/11 (e)	50,000		55,750
Jacuzzi Brands, Inc. 9.625% 7/1/10	70,000		77,350
Nortek Holdings, Inc. 0% 5/15/11 (d)(e)	85,000		63,325
Nortek, Inc. 4.17% 12/31/10 (e)(g)	70,000		70,000
			266,425
Nonconvertible Bonds - continued
	Principal Amount		Value (Note 1)
INDUSTRIALS - continued
Commercial Services & Supplies - 0.1%
Allied Waste North America, Inc.:
5.75% 2/15/11 (e)	$ 30,000		$ 29,025
6.125% 2/15/14 (e)	230,000		222,525
7.875% 1/1/09	4,000		4,170
7.875% 4/15/13	25,000		27,250
9.25% 9/1/12	95,000		107,825
American Color Graphics, Inc. 10% 6/15/10	20,000		17,800
Browning-Ferris Industries, Inc. 6.375% 1/15/08	25,000		25,500
			434,095
Construction & Engineering - 0.0%
Amsted Industries, Inc. 10.25% 10/15/11 (e)	80,000		89,600
Electrical Equipment - 0.1%
General Cable Corp. 9.5% 11/15/10 (e)	120,000		131,100
Industrial Conglomerates - 0.0%
Tyco International Group SA yankee 6.375% 10/15/11	20,000		21,876
Machinery - 0.3%
AGCO Corp.:
8.5% 3/15/06	65,000		65,000
9.5% 5/1/08	50,000		54,750
Columbus McKinnon Corp. 10% 8/1/10	120,000		129,600
Cummins, Inc. 5.65% 3/1/98	30,000		21,600
Dresser, Inc. 9.375% 4/15/11	110,000		119,900
Dunlop Standard Aerospace Holdings PLC:
11.875% 5/15/09 (e)	180,000		191,700
yankee 11.875% 5/15/09	160,000		170,400
Invensys PLC 9.875% 3/15/11 (e)	155,000		158,488
Terex Corp. 7.375% 1/15/14 (e)	100,000		107,000
Trinity Industries, Inc. 6.5% 3/15/14 (e)	55,000		54,863
			1,073,301
Marine - 0.0%
OMI Corp. 7.625% 12/1/13	80,000		82,800
Road & Rail - 0.0%
Kansas City Southern Railway Co. 7.5% 6/15/09	35,000		35,875
Nonconvertible Bonds - continued
	Principal Amount		Value (Note 1)
INDUSTRIALS - continued
Road & Rail - continued
TFM SA de CV yankee:
10.25% 6/15/07	$ 10,000		$ 10,350
11.75% 6/15/09	60,000		60,300
			106,525
TOTAL INDUSTRIALS			3,127,785
INFORMATION TECHNOLOGY - 0.6%
Communications Equipment - 0.1%
Corning, Inc.:
5.9% 3/15/14	90,000		89,325
6.2% 3/15/16	80,000		79,400
L-3 Communications Corp. 6.125% 1/15/14 (e)	50,000		51,250
Lucent Technologies, Inc. 6.45% 3/15/29	115,000		97,175
			317,150
Electronic Equipment & Instruments - 0.1%
Flextronics International Ltd. 6.5% 5/15/13	105,000		109,725
Ingram Micro, Inc. 9.875% 8/15/08	70,000		78,050
PerkinElmer, Inc. 8.875% 1/15/13	70,000		80,675
Solectron Corp. 7.375% 3/1/06	35,000		36,531
			304,981
IT Services - 0.2%
Dex Media, Inc.:
0% 11/15/13 (d)(e)	110,000		70,400
0% 11/15/13 (d)(e)	220,000		140,800
8% 11/15/13 (e)	205,000		202,950
Iron Mountain, Inc.:
6.625% 1/1/16	45,000		44,100
8.625% 4/1/13	150,000		163,500
			621,750
Office Electronics - 0.1%
Xerox Corp.:
7.125% 6/15/10	80,000		84,200
7.2% 4/1/16	30,000		30,900
7.625% 6/15/13	120,000		127,500
			242,600
Semiconductors & Semiconductor Equipment - 0.1%
AMI Semiconductor, Inc. 10.75% 2/1/13	16,000		18,720
Nonconvertible Bonds - continued
	Principal Amount		Value (Note 1)
INFORMATION TECHNOLOGY - continued
Semiconductors & Semiconductor Equipment - continued
Amkor Technology, Inc.:
7.125% 3/15/11 (e)	$ 165,000		$ 165,000
7.75% 5/15/13	100,000		102,000
Viasystems, Inc. 10.5% 1/15/11 (e)	185,000		206,275
			491,995
TOTAL INFORMATION TECHNOLOGY			1,978,476
MATERIALS - 1.4%
Chemicals - 0.3%
Airgas, Inc. 6.25% 7/15/14 (e)	70,000		72,100
Berry Plastics Corp. 10.75% 7/15/12	95,000		107,825
Equistar Chemicals LP/Equistar Funding Corp.:
8.75% 2/15/09	10,000		10,200
10.125% 9/1/08	20,000		21,500
10.625% 5/1/11	255,000		275,400
HMP Equity Holdings Corp. 0% 5/15/08 (e)	110,000		58,300
Huntsman ICI Chemicals LLC 10.125% 7/1/09	115,000		116,150
Huntsman International LLC 9.875% 3/1/09	90,000		97,875
Lyondell Chemical Co.:
9.625% 5/1/07	50,000		51,750
9.875% 5/1/07	45,000		46,800
Millennium America, Inc.:
9.25% 6/15/08	175,000		187,250
9.25% 6/15/08 (e)	30,000		32,100
Nalco Co.:
7.75% 11/15/11 (e)	40,000		41,400
8.875% 11/15/13 (e)	40,000		41,500
NOVA Chemicals Corp. 6.5% 1/15/12 (e)	120,000		123,600
Pliant Corp. 0% 6/15/09 (d)(e)	60,000		48,000
			1,331,750
Construction Materials - 0.1%
Texas Industries, Inc. 10.25% 6/15/11	175,000		198,625
U.S. Concrete, Inc. 8.375% 4/1/14 (e)	60,000		61,500
			260,125
Containers & Packaging - 0.3%
Anchor Glass Container Corp. 11% 2/15/13	155,000		179,025
BWAY Corp. 10% 10/15/10	90,000		96,300
Crown European Holdings SA 10.875% 3/1/13	65,000		75,563
Nonconvertible Bonds - continued
	Principal Amount		Value (Note 1)
MATERIALS - continued
Containers & Packaging - continued
Graphic Packaging International, Inc.:
8.5% 8/15/11	$ 40,000		$ 44,800
9.5% 8/15/13	40,000		45,400
Jefferson Smurfit Corp. U.S. 7.5% 6/1/13	110,000		115,500
Owens-Brockway Glass Container, Inc. 8.875% 2/15/09	200,000		216,000
Owens-Illinois, Inc.:
7.35% 5/15/08	20,000		19,700
7.5% 5/15/10	130,000		125,450
7.8% 5/15/18	95,000		87,638
8.1% 5/15/07	25,000		25,500
			1,030,876
Metals & Mining - 0.3%
AK Steel Corp.:
7.75% 6/15/12	45,000		39,713
7.875% 2/15/09	45,000		40,725
Allegheny Ludlum Corp. 6.95% 12/15/25	75,000		67,500
Allegheny Technologies, Inc. 8.375% 12/15/11	245,000		246,225
California Steel Industries, Inc. 6.125% 3/15/14 (e)	50,000		50,250
Compass Minerals International, Inc. 0% 6/1/13 (d)	110,000		83,600
CSN Islands VII Corp. 10.75% 9/12/08 (e)	60,000		63,750
CSN Islands VIII Corp. 9.75% 12/16/13 (e)	40,000		39,400
Freeport-McMoRan Copper & Gold, Inc.:
6.875% 2/1/14 (e)	80,000		77,800
10.125% 2/1/10	80,000		91,400
Peabody Energy Corp.:
5.875% 4/15/16	55,000		55,275
6.875% 3/15/13	100,000		108,000
Steel Dynamics, Inc.:
9.5% 3/15/09	20,000		22,300
9.5% 3/15/09 (e)	20,000		22,300
			1,008,238
Paper & Forest Products - 0.4%
Ainsworth Lumber Co. Ltd. 6.75% 3/15/14 (e)	80,000		80,400
Bowater, Inc.:
4.11% 3/15/10 (g)	90,000		89,325
6.5% 6/15/13	35,000		34,038
Buckeye Technologies, Inc. 8.5% 10/1/13	110,000		118,250
Nonconvertible Bonds - continued
	Principal Amount		Value (Note 1)
MATERIALS - continued
Paper & Forest Products - continued
Georgia-Pacific Corp.:
8% 1/15/14	$ 100,000		$ 111,500
8% 1/15/24 (e)	55,000		58,300
8.125% 5/15/11	85,000		96,688
8.875% 5/15/31	30,000		33,600
9.5% 12/1/11	70,000		84,000
Norske Skog Canada Ltd.:
7.375% 3/1/14 (e)	50,000		51,375
8.625% 6/15/11	185,000		197,950
Stone Container Corp. 8.375% 7/1/12	205,000		222,938
Tembec Industries, Inc.:
7.75% 3/15/12	75,000		72,375
8.5% 2/1/11	200,000		200,000
yankee 8.625% 6/30/09	65,000		65,000
			1,515,739
TOTAL MATERIALS			5,146,728
TELECOMMUNICATION SERVICES - 1.1%
Diversified Telecommunication Services - 0.8%
Centennial Cellular Operating Co. LLC/Centennial Finance Corp. 10.75% 12/15/08	179,000		182,580
Cincinnati Bell, Inc. 8.375% 1/15/14	130,000		126,100
Citizens Communications Co.:
7.625% 8/15/08	70,000		73,500
9% 8/15/31	40,000		42,200
9.25% 5/15/11	30,000		33,150
Empresa Brasil de Telecomm SA 11% 12/15/08 (e)	140,000		151,550
Eschelon Operating Co. 8.375% 3/15/10 (e)	130,000		110,500
GCI, Inc. 7.25% 2/15/14 (e)	190,000		185,250
Level 3 Communications, Inc.:
9.125% 5/1/08	15,000		12,075
10.5% 12/1/08	180,000		147,600
MCI Communications Corp.:
6.5% 4/15/10 (c)	80,000		63,600
6.95% 8/15/06 (c)	110,000		87,450
7.75% 3/15/24 (c)	65,000		51,513
7.75% 3/23/25 (c)	85,000		67,256
8.25% 1/20/23 (c)	30,000		23,550
Primus Telecom Holding, Inc. 8% 1/15/14 (e)	190,000		181,925
Nonconvertible Bonds - continued
	Principal Amount		Value (Note 1)
TELECOMMUNICATION SERVICES - continued
Diversified Telecommunication Services - continued
Qwest Communications International, Inc. 7.25% 2/15/11 (e)	$ 60,000		$ 57,000
Qwest Corp. 9.125% 3/15/12 (e)	60,000		68,100
Qwest Services Corp.:
13.5% 12/15/10 (e)	175,000		203,000
14% 12/15/14 (e)	290,000		348,000
Telenet Group Holding NV 0% 6/15/14 (d)(e)	330,000		201,300
Telewest Communications PLC yankee 11.25% 11/1/08 (c)	25,000		15,625
Triton PCS, Inc.:
8.75% 11/15/11	20,000		18,850
9.375% 2/1/11	35,000		33,688
U.S. West Communications:
6.875% 9/15/33	160,000		142,000
7.2% 11/10/26	40,000		36,800
7.5% 6/15/23	85,000		77,775
			2,741,937
Wireless Telecommunication Services - 0.3%
American Cellular Corp. 10% 8/1/11	60,000		57,600
Centennial Communications Crop./Centennial Cellular Operating Co. LLC/Centennial Puerto Rico Operations Corp. 8.125% 2/1/14 (e)	60,000		55,200
Crown Castle International Corp. 7.5% 12/1/13	40,000		39,200
DirecTV Holdings LLC/DirecTV Financing, Inc. 8.375% 3/15/13	90,000		103,050
Dobson Communications Corp. 8.875% 10/1/13	150,000		117,000
Millicom International Cellular SA 10% 12/1/13 (e)	110,000		114,950
Nextel Communications, Inc.:
6.875% 10/31/13	205,000		218,325
7.375% 8/1/15	30,000		32,550
Rogers Wireless, Inc.:
6.375% 3/1/14 (e)	160,000		161,600
9.625% 5/1/11	90,000		110,025
Western Wireless Corp. 9.25% 7/15/13	105,000		107,888
			1,117,388
TOTAL TELECOMMUNICATION SERVICES			3,859,325
Nonconvertible Bonds - continued
	Principal Amount		Value (Note 1)
UTILITIES - 0.6%
Electric Utilities - 0.2%
AES Gener SA 7.5% 3/25/14 (e)	$ 20,000		$ 20,400
CMS Energy Corp.:
7.5% 1/15/09	35,000		36,006
7.75% 8/1/10 (e)	60,000		62,400
8.5% 4/15/11	175,000		187,906
8.9% 7/15/08	65,000		69,956
9.875% 10/15/07	30,000		33,038
TECO Energy, Inc.:
7% 5/1/12	80,000		84,000
7.2% 5/1/11	60,000		64,050
			557,756
Gas Utilities - 0.1%
El Paso Energy Corp.:
6.75% 5/15/09	45,000		39,713
6.95% 12/15/07	90,000		82,125
Sonat, Inc.:
6.625% 2/1/08	65,000		56,875
6.75% 10/1/07	65,000		58,094
7.625% 7/15/11	50,000		43,313
			280,120
Multi-Utilities & Unregulated Power - 0.3%
AES Corp.:
7.75% 3/1/14	180,000		178,875
8.5% 11/1/07	60,000		61,350
8.75% 6/15/08	85,000		89,250
8.75% 5/15/13 (e)	195,000		213,769
8.875% 2/15/11	90,000		96,188
9% 5/15/15 (e)	40,000		44,100
9.375% 9/15/10	12,000		13,065
9.5% 6/1/09	10,000		10,863
NRG Energy, Inc. 8% 12/15/13 (e)	145,000		149,713
Williams Companies, Inc.:
7.125% 9/1/11	150,000		157,500
7.875% 9/1/21	65,000		65,894
Nonconvertible Bonds - continued
	Principal Amount		Value (Note 1)
UTILITIES - continued
Multi-Utilities & Unregulated Power - continued
Williams Companies, Inc.: - continued
8.125% 3/15/12	$ 80,000		$ 88,800
8.625% 6/1/10	90,000		99,000
			1,268,367
TOTAL UTILITIES			2,106,243
TOTAL NONCONVERTIBLE BONDS (Cost $32,746,327)		33,446,497
U.S. Treasury Obligations - 0.3%

U.S. Treasury Bills, yield at date of purchase 0.87% to 0.93% 4/22/04 to 6/10/04 (f) (Cost $953,687)	955,000		953,703

Money Market Funds - 5.4%
	Shares
Fidelity Cash Central Fund, 1.08% (b)	18,397,866		18,397,866
Fidelity Securities Lending Cash Central Fund, 1.08% (b)	1,012,420		1,012,420
TOTAL MONEY MARKET FUNDS (Cost $19,410,286)		19,410,286
TOTAL INVESTMENT PORTFOLIO - 99.5% (Cost $302,995,748)			355,336,271
NET OTHER ASSETS - 0.5%			1,937,480
NET ASSETS - 100%		$ 357,273,751

Futures Contracts
	Expiration Date	Underlying Face Amount at Value	Unrealized Appreciation/ (Depreciation)
Purchased
Equity Index Contracts
37 S&P 500 Index Contracts	June 2004	$ 10,405,325	$ 107,953

The face value of futures purchased as a percentage of net assets - 2.9%

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 listing of the fund's holdings as of its most recent fiscal year end is available upon request.

(d) Debt obligation initially issued in zero coupon form which converts to coupon form at a specified rate and date. The rate shown is the rate 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 period end, the value of these securities amounted to $10,980,496 or 3.1% of net assets.

(f) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $754,064.

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

Other Information

The composition of credit quality ratings as a percentage of net assets is as follows (ratings are unaudited):

AAA,AA,A	0.0%
BBB	0.0%
BB	2.3%
B	5.2%
CCC,CC,C	1.8%
Not Rated	0.1%
Equities	87.3%
Short-Term Investments and Net Other Assets	3.3%

We have used ratings from Moody's^® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P^® ratings. Percentages are adjusted for the effect of futures contracts, if applicable.

Distribution of investments by country of issue, as a percentage of total net assets, is as follows:

United States of America	79.9%
Japan	9.6%
Canada	1.7%
Cayman Islands	1.5%
Korea (South)	1.3%
United Kingdom	1.2%
Bermuda	1.0%
Finland	1.0%
Others (individually less than 1%)	2.8%
	100.0%

Purchases and sales of securities, other than short-term securities, aggregated $180,188,923 and $137,887,197, respectively.

The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $4,892 for the period.

Income Tax Information

At September 30, 2003, the fund had a capital loss carryforward of approximately $194,665,000 of which $153,000, $144,004,000 and $50,508,000 will expire on September 30, 2009, 2010 and 2011, respectively.

The fund intends to elect to defer to its fiscal year ending September 30, 2004 approximately $20,016,000 of losses recognized during the period November 1, 2002 to September 30, 2003.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

	March 31, 2004 (Unaudited)

Assets
Investment in securities, at value (including securities loaned of $965,729) (cost $302,995,748) - See accompanying schedule		$ 355,336,271
Receivable for investments sold		4,604,690
Receivable for fund shares sold		746,142
Dividends receivable		399,534
Interest receivable		669,253
Prepaid expenses		977
Other receivables		26,763
Total assets		361,783,630

Liabilities
Payable to custodian bank	$ 15,854
Payable for investments purchased	2,610,654
Payable for fund shares redeemed	575,975
Accrued management fee	168,395
Payable for daily variation on futures contracts	11,100
Other affiliated payables	91,617
Other payables and accrued expenses	23,864
Collateral on securities loaned, at value	1,012,420
Total liabilities		4,509,879

Net Assets		$ 357,273,751
Net Assets consist of:
Paid in capital		$ 489,611,765
Distributions in excess of net investment income		(244,344)
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(184,547,459)
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		52,453,789
Net Assets, for 33,619,039 shares outstanding		$ 357,273,751
Net Asset Value, offering price and redemption price per share ($357,273,751 ÷ 33,619,039 shares)		$ 10.63

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Statement of Operations

	Six months ended March 31, 2004 (Unaudited)

Investment Income
Dividends		$ 1,116,410
Interest		1,031,519
Security lending		23,484
Total income		2,171,413

Expenses
Management fee	$ 919,682
Transfer agent fees	452,331
Accounting and security lending fees	59,873
Non-interested trustees' compensation	706
Custodian fees and expenses	20,438
Registration fees	14,562
Audit	18,575
Legal	3,908
Miscellaneous	1,471
Total expenses before reductions	1,491,546
Expense reductions	(46,123)	1,445,423
Net investment income (loss)		725,990
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities	30,404,339
Foreign currency transactions	(28,337)
Futures contracts	(85,550)
Total net realized gain (loss)		30,290,452
Change in net unrealized appreciation (depreciation) on: Investment securities	10,833,338
Assets and liabilities in foreign currencies	3,347
Futures contracts	107,953
Total change in net unrealized appreciation (depreciation)		10,944,638
Net gain (loss)		41,235,090
Net increase (decrease) in net assets resulting from operations		$ 41,961,080

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Statement of Changes in Net Assets

	Six months ended March 31, 2004 (Unaudited)	Year ended September 30, 2003
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 725,990	$ 1,118,270
Net realized gain (loss)	30,290,452	(21,909,561)
Change in net unrealized appreciation (depreciation)	10,944,638	79,635,426
Net increase (decrease) in net assets resulting from operations	41,961,080	58,844,135
Distributions to shareholders from net investment income	(1,838,394)	(1,488,138)
Share transactions Net proceeds from sales of shares	135,570,771	103,536,414
Reinvestment of distributions	1,804,599	1,457,065
Cost of shares redeemed	(70,578,571)	(62,170,812)
Net increase (decrease) in net assets resulting from share transactions	66,796,799	42,822,667
Total increase (decrease) in net assets	106,919,485	100,178,664

Net Assets
Beginning of period	250,354,266	150,175,602
End of period (including distributions in excess of net investment income of $244,344 and undistributed net investment income of $868,060, respectively)	$ 357,273,751	$ 250,354,266
Other Information Shares
Sold	13,349,446	12,700,671
Issued in reinvestment of distributions	180,460	207,559
Redeemed	(6,939,235)	(7,996,252)
Net increase (decrease)	6,590,671	4,911,978

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Highlights

	Six months ended March 31, 2004	Years ended September 30,
	(Unaudited)	2003	2002	2001	2000	1999 ^E
Selected Per-Share Data
Net asset value, beginning of period	$ 9.26	$ 6.79	$ 9.57	$ 15.32	$ 10.22	$ 10.00
Income from Investment Operations
Net investment income (loss) ^D	.02	.05	.08 ^G	.20	.19	.01
Net realized and unrealized gain (loss)	1.41	2.49	(2.64) ^G	(5.22)	4.98	.21
Total from investment operations	1.43	2.54	(2.56)	(5.02)	5.17	.22
Distributions from net investment income	(.06)	(.07)	(.22)	(.13)	(.02)	-
Distributions from net realized gain	-	-	-	(.60)	(.05)	-
Total distributions	(.06)	(.07)	(.22)	(.73)	(.07)	-
Net asset value, end of period	$ 10.63	$ 9.26	$ 6.79	$ 9.57	$ 15.32	$ 10.22
Total Return ^{B, C}	15.48%	37.74%	(27.58)%	(33.98)%	50.84%	2.20%
Ratios to Average Net Assets ^F
Expenses before expense reductions	.94% ^A	1.03%	.97%	.89%	.96%	57.49% ^A
Expenses net of voluntary waivers, if any	.94% ^A	1.03%	.97%	.89%	.96%	1.20% ^A
Expenses net of all reductions	.91% ^A	1.00%	.88%	.85%	.90%	1.20% ^A
Net investment income (loss)	.46% ^A	.63%	.87% ^G	1.55%	1.32%	4.06% ^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 357,274	$ 250,354	$ 150,176	$ 264,317	$ 565,258	$ 3,065
Portfolio turnover rate	93% ^A	131%	240%	255%	338%	0% ^A

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns would have been lower had certain expenses not been reduced during the periods shown.

^D Calculated based on average shares outstanding during the period.

^E For the period September 24, 1999 (commencement of operations) to September 30, 1999.

^F Expense ratios reflect operating expenses of the fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the fund.

^G Effective October 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities. Per-share data and ratios for periods prior to adoption have not been restated to reflect this change.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Notes to Financial Statements

For the period ended March 31, 2004 (Unaudited)

1. Significant Accounting Policies.

Fidelity Asset Manager: Aggressive (the fund) is a fund of Fidelity Charles Street Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:

Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. Debt securities for which quotations are readily available are valued at their most recent bid prices (sales prices if the principal market is an exchange) in the principal market in which such securities are normally traded, as determined by recognized dealers in such securities, or securities are valued on the basis of information provided by a pricing service. Pricing services use valuation matrices that incorporate both dealer-supplied valuations and valuation models. If prices are not readily available or do not accurately reflect fair value for a security, or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, that security may be valued by another method that the Board of Trustees believes accurately reflects fair value. A security's valuation may differ depending on the method used for determining value. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.

Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.

Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.

Semiannual Report

Notes to Financial Statements - continued

1. Significant Accounting Policies - continued

Foreign Currency - continued

The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.

Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. The fund estimates the components of distributions received from Real Estate Investment Trusts (REITs). Distributions received in excess of income are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectibility of interest is reasonably assured.

Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.

Income Tax Information and Distributions to Shareholders. Each year, the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. Foreign taxes are provided for based on each fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Distributions are recorded on the ex-dividend date.

Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Capital accounts within the financial statements are adjusted for permanent and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due to futures transactions, foreign currency transactions, passive

Semiannual Report

1. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

foreign investment companies (PFIC), defaulted bonds, market discount, non-taxable dividends, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.

The federal tax cost of investments including unrealized appreciation (depreciation) as of period end was as follows:

Unrealized appreciation	$ 59,029,309
Unrealized depreciation	(6,872,811)
Net unrealized appreciation (depreciation)	$ 52,156,498
Cost for federal income tax purposes	$ 303,179,773

2. Operating Policies.

Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. Collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. Collateral is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).

Futures Contracts. The fund may use futures contracts to manage its exposure to the stock market. Buying futures tends to increase the fund's exposure to the underlying instrument, while selling futures tends to decrease the fund's exposure to the underlying instrument or hedge other fund investments. Futures contracts involve, to varying degrees, risk of loss in excess of any futures variation margin reflected in the Statement of Assets and Liabilities. The underlying face amount at value of any open futures contracts at period end is shown in the Schedule of Investments under the caption "Futures Contracts." This amount reflects each contract's exposure to the underlying instrument at period end. Losses may arise from changes in the value of the underlying instruments or if the counterparties do not perform under the contracts' terms. Gains (losses) are realized upon the expiration or closing of the futures contracts. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.

Semiannual Report

Notes to Financial Statements - continued

2. Operating Policies - continued

Restricted Securities. The fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the fund's Schedule of Investments.

3. Purchases and Sales of Investments.

Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.

4. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the fund's average net assets and a group fee rate that averaged .28% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .58% of the fund's average net assets.

Transfer Agent Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, is the fund's transfer, dividend disbursing and shareholder servicing agent. FSC receives account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .28% of average net assets.

Accounting and Security Lending Fees. FSC maintains the fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.

Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $109,856 for the period.

Semiannual Report

4. Fees and Other Transactions with Affiliates - continued

Brokerage Commissions. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms are shown under the caption "Other Information" at the end of the fund's Schedule of Investments.

5. Committed Line of Credit.

The fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The fund has agreed to pay commitment fees on its pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.

6. Security Lending.

The fund lends portfolio securities from time to time in order to earn additional income. The fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the fund and any additional required collateral is delivered to the fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Cash collateral is invested in cash equivalents. The value of loaned securities and cash collateral at period end are disclosed on the fund's Statement of Assets and Liabilities.

7. Expense Reductions.

Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services included payments of certain expenses on behalf of the fund totaling $45,903 for the period. In addition, through arrangements with the fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. During the period, these credits reduced the fund's custody expenses by $220.

Semiannual Report

Managing Your Investments

Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.

By Phone

Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.

(phone_graphic)Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555

Press

1 For mutual fund and brokerage trading.

2 For quotes.*

3 For account balances and holdings.

4 To review orders and mutual
fund activity.

5 To change your PIN.

*0 To speak to a Fidelity representative.

By PC

Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.

(computer_graphic)Fidelity's Web Site
www.fidelity.com

* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.

Semiannual Report

To Visit Fidelity

For directions and hours,
please call 1-800-544-9797.

Arizona

7001 West Ray Road
Chandler, AZ

7373 N. Scottsdale Road
Scottsdale, AZ

California

815 East Birch Street
Brea, CA

1411 Chapin Avenue
Burlingame, CA

851 East Hamilton Avenue
Campbell, CA

123 South Lake Avenue
Pasadena, CA

19200 Von Karman Avenue
Irvine, CA

601 Larkspur Landing Circle
Larkspur, CA

10100 Santa Monica Blvd.
Los Angeles, CA

27101 Puerta Real
Mission Viejo, CA

73-575 El Paseo
Palm Desert, CA

251 University Avenue
Palo Alto, CA

1760 Challenge Way
Sacramento, CA

7676 Hazard Center Drive
San Diego, CA

8 Montgomery Street
San Francisco, CA

21701 Hawthorne Boulevard
Torrance, CA

2001 North Main Street
Walnut Creek, CA

6300 Canoga Avenue
Woodland Hills, CA

Colorado

1625 Broadway
Denver, CO

9185 East Westview Road
Littleton, CO

Connecticut

48 West Putnam Avenue
Greenwich, CT

265 Church Street
New Haven, CT

300 Atlantic Street
Stamford, CT

29 South Main Street
West Hartford, CT

Delaware

222 Delaware Avenue
Wilmington, DE

Florida

4400 N. Federal Highway
Boca Raton, FL

121 Alhambra Plaza
Coral Gables, FL

2948 N. Federal Highway
Ft. Lauderdale, FL

1907 West State Road 434
Longwood, FL

8880 Tamiami Trail, North
Naples, FL

3501 PGA Boulevard
West Palm Beach, FL

8065 Beneva Road
Sarasota, FL

1502 N. Westshore Blvd.
Tampa, FL

Georgia

3445 Peachtree Road, N.E.
Atlanta, GA

1000 Abernathy Road
Atlanta, GA

Illinois

One North LaSalle Street
Chicago, IL

1415 West 22nd Street
Oak Brook, IL

1700 East Golf Road
Schaumburg, IL

3232 Lake Avenue
Wilmette, IL

Indiana

4729 East 82nd Street
Indianapolis, IN

Kansas

5400 College Boulevard
Overland Park, KS

Maine

Three Canal Plaza
Portland, ME

Maryland

7401 Wisconsin Avenue
Bethesda, MD

One W. Pennsylvania Ave.
Towson, MD

Massachusetts

801 Boylston Street
Boston, MA

155 Congress Street
Boston, MA

300 Granite Street
Braintree, MA

44 Mall Road
Burlington, MA

405 Cochituate Road
Framingham, MA

416 Belmont Street
Worcester, MA

Semiannual Report

Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC

Michigan

280 Old N. Woodward Ave.
Birmingham, MI

43420 Grand River Avenue
Novi, MI

29155 Northwestern Hwy.
Southfield, MI

Minnesota

7600 France Avenue South
Edina, MN

Missouri

8885 Ladue Road
Ladue, MO

New Jersey

150 Essex Street
Millburn, NJ

56 South Street
Morristown, NJ

501 Route 17, South
Paramus, NJ

3518 Route 1 North
Princeton, NJ

New York

1055 Franklin Avenue
Garden City, NY

37 West Jericho Turnpike
Huntington Station, NY

1271 Avenue of the Americas
New York, NY

61 Broadway
New York, NY

350 Park Avenue
New York, NY

North Carolina

4611 Sharon Road
Charlotte, NC

Ohio

3805 Edwards Road
Cincinnati, OH

28699 Chagrin Boulevard
Woodmere Village, OH

1324 Polaris Parkway
Columbus, OH

Oregon

16850 SW 72nd Avenue
Tigard, OR

Pennsylvania

600 West DeKalb Pike
King of Prussia, PA

1735 Market Street
Philadelphia, PA

12001 Perry Highway
Wexford, PA

Rhode Island

47 Providence Place
Providence, RI

Tennessee

6150 Poplar Avenue
Memphis, TN

Texas

10000 Research Boulevard
Austin, TX

4017 Northwest Parkway
Dallas, TX

12532 Memorial Drive
Houston, TX

2701 Drexel Drive
Houston, TX

400 East Las Colinas Blvd.
Irving, TX

14100 San Pedro
San Antonio, TX

19740 IH 45 North
Spring, TX

6005 West Park Boulevard
Plano, TX

Utah

215 South State Street
Salt Lake City, UT

Virginia

1861 International Drive
McLean, VA

Washington

411 108th Avenue, N.E.
Bellevue, WA

1518 6th Avenue
Seattle, WA

Washington, DC

1900 K Street, N.W.
Washington, DC

Wisconsin

595 North Barker Road
Brookfield, WI

Semiannual Report

To Write Fidelity

We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.

(letter_graphic)Making Changes
To Your Account

(such as changing name, address, bank, etc.)

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002

(letter_graphic)For Non-Retirement
Accounts

Buying shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003

Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

Selling shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035

Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

General Correspondence

Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500

(letter_graphic)For Retirement
Accounts

Buying shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003

Selling shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035

Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

General Correspondence

Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Investments Money
Management, Inc.

Fidelity Management & Research

(U.K.) Inc.

Fidelity Management & Research

(Far East) Inc.

Fidelity Investments Japan Limited

Fidelity International Investment

Advisors

Fidelity International Investment

Advisors (U.K.) Limited

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Shareholder
Servicing Agent

Fidelity Service Company, Inc.

Boston, MA

Custodian

JPMorgan Chase Bank

New York, NY

Fidelity's Asset Allocation Funds

Asset Manager^SM

Asset Manager: Aggressive®

Asset Manager: Growth®

Asset Manager: Income®

Fidelity Freedom Funds® -
Income, 2000, 2005, 2010, 2015, 2020, 2025, 2030, 2035, 2040

The Fidelity Telephone Connection

Mutual Fund 24-Hour Service

Exchanges/Redemptions
and Account Assistance 1-800-544-6666

Product Information 1-800-544-6666

Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)

TDD Service 1-800-544-0118
(for the deaf and hearing impaired)
(9 a.m. - 9 p.m. Eastern time)

Fidelity Automated Service
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(automated graphic) Automated line for quickest service

(Fidelity Investment logo)(registered trademark)
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AGG-USAN-0504
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Fidelity®

Asset Manager^SM

Semiannual Report

March 31, 2004

(2_fidelity_logos) (Registered_Trademark)

Chairman's Message	<Click Here>	Ned Johnson's message to shareholders.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.
Auditors' Opinion	<Click Here>

Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.

Other third party marks appearing herein are the property of their respective owners.

All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.

(Recycle graphic) This report is printed on recycled paper using soy-based inks.

Neither the fund nor Fidelity Distributors Corporation is a bank.

For more information on any Fidelity fund, including charges and expenses, call 1-800-544-6666 for a free prospectus. Read it carefully before you invest or send money.

Chairman's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

Best regards,

/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Semiannual Report

Investment Changes

Top Five Stocks as of March 31, 2004
	% of fund's net assets	% of fund's net assets 6 months ago
Cardinal Health, Inc.	3.3	3.3
American International Group, Inc.	2.9	2.8
Clear Channel Communications, Inc.	2.5	2.5
Microsoft Corp.	2.3	1.7
Home Depot, Inc.	2.1	2.0
	13.1
Top Five Bond Issuers as of March 31, 2004
(with maturities greater than one year)	% of fund's net assets	% of fund's net assets 6 months ago
Fannie Mae	5.6	6.6
U.S. Treasury Obligations	2.8	5.5
Freddie Mac	0.8	1.8
Government National Mortgage Association	0.7	1.1
Tyco International Group SA	0.4	0.5
	10.3
Top Five Market Sectors as of March 31, 2004
	% of fund's net assets	% of fund's net assets 6 months ago
Financials	16.7	15.6
Health Care	10.3	11.1
Consumer Discretionary	9.7	9.3
Information Technology	7.0	5.8
Consumer Staples	5.3	5.4

Asset Allocation (% of fund's net assets)
As of March 31, 2004*			As of September 30, 2003 **
	Stock class 56.0%			Stock class 52.5%
	Bond class 29.9%			Bond class 34.9%
	Short-term class 14.1%			Short-term class 12.6%
* Foreign investments		8.5%	** Foreign investments		4.2%

The information in the above tables is based on the combined investments of the fund and its pro-rata share of the investments of Fidelity's fixed-income central fund.

Semiannual Report

Investments March 31, 2004

Showing Percentage of Net Assets

Common Stocks - 51.9%
	Shares		Value (Note 1) (000s)
CONSUMER DISCRETIONARY - 6.9%
Auto Components - 0.0%
Aisin Seiki Co. Ltd.	55,000		$ 1,073
NOK Corp.	35,200		1,296
			2,369
Automobiles - 0.2%
Denway Motors Ltd.	1,140,000		1,317
Fiat Spa (a)	455,300		3,147
Honda Motor Co. Ltd.	23,600		1,092
Hyundai Motor Co. Ltd.	9,990		458
Kia Motors Corp.	111,550		1,152
Nissan Motor Co. Ltd.	159,600		1,756
Toyota Motor Corp.	183,500		6,835
			15,757
Distributors - 0.0%
Sixt AG	50,400		1,009
Hotels, Restaurants & Leisure - 0.3%
H.I.S. Co. Ltd.	32,600		857
Hilton Group PLC	674,700		2,827
McDonald's Corp.	801,200		22,890
MyTravel Group PLC (a)	2,920,000		485
William Hill PLC	298,700		2,863
			29,922
Household Durables - 0.2%
Barratt Developments PLC	111,200		1,277
Guangdong Kelon Electrical Holdings Ltd. Series H (a)	800,000		416
Koninklijke Philips Electronics NV	65,600		1,901
Koninklijke Philips Electronics NV (NY Shares)	53,100		1,539
LG Electronics, Inc.	31,690		1,905
Matsushita Electric Industrial Co. Ltd.	114,000		1,758
ReignCom Ltd.	7,196		619
Sanyo Electric Co. Ltd.	195,000		969
SEB SA	17,861		2,295
Sharp Corp.	97,000		1,729
Sony Corp.	58,100		2,429
Sumitomo Forestry Co. Ltd.	109,000		1,254
Techtronic Industries Co.	75,500		245
Waterford Wedgwood PLC unit (a)	1,880,200		547
			18,883
Common Stocks - continued
	Shares		Value (Note 1) (000s)
CONSUMER DISCRETIONARY - continued
Internet & Catalog Retail - 0.0%
N Brown Group PLC	645,800		$ 1,472
Leisure Equipment & Products - 0.0%
Asia Optical Co., Inc.	122,000		1,118
Fuji Photo Film Co. Ltd.	28,000		889
			2,007
Media - 3.6%
Asahi Broadcasting Corp.	6,360		470
British Sky Broadcasting Group PLC (BSkyB)	331,000		4,145
Canal Plus SA	142,400		1,002
Cheil Communications, Inc.	2,540		412
Clear Channel Communications, Inc.	6,564,791		278,019
Dentsu, Inc.	162		494
Dentsu, Inc. New (a)	162		482
Eniro AB	228,300		1,954
ITV PLC	1,408,558		3,464
Maiden Group PLC	204,900		1,021
McGraw-Hill Companies, Inc.	185,400		14,116
Mediaset Spa	144,000		1,602
Modern Times Group AB (MTG) (B Shares) (a)	91,300		1,702
News Corp. Ltd.	309,220		2,781
News Corp. Ltd. sponsored ADR	868,300		27,534
NRJ Group	93,807		1,999
PT Multimedia SGPS SA (a)	86,800		1,926
Publishing & Broadcasting Ltd.	143,029		1,294
Reuters Group PLC	303,800		2,170
Television Broadcasts Ltd.	170,000		803
Time Warner, Inc. (a)	3,522,550		59,390
Tv Asahi Corp.	549		1,132
Vivendi Universal SA (a)	97,400		2,585
Vivendi Universal SA sponsored ADR (a)	49,300		1,308
Wolters Kluwer NV (Certificaten Van Aandelen)	195,100		3,343
			415,148
Multiline Retail - 0.1%
Barneys, Inc. warrants 4/1/08 (a)	1,630		41
Don Quijote Co. Ltd.	18,500		1,224
Hankyu Department Stores, Inc.	54,000		504
Hyundai Department Store Co. Ltd.	21,020		640
Marks & Spencer Group PLC	415,600		2,136
Common Stocks - continued
	Shares		Value (Note 1) (000s)
CONSUMER DISCRETIONARY - continued
Multiline Retail - continued
Next PLC	90,500		$ 2,389
Shinsegae Co. Ltd.	4,130		1,023
Woolworths Group PLC	2,223,200		1,683
			9,640
Specialty Retail - 2.4%
Dixons Group PLC	1,749,800		4,974
Esprit Holdings Ltd.	477,000		2,002
Fast Retailing Co. Ltd.	24,200		1,975
Giordano International Ltd.	1,730,000		1,082
Home Depot, Inc.	6,425,600		240,060
Limited Brands, Inc.	469,380		9,388
Nishimatsuya Chain Co. Ltd.	40,780		1,545
Office Depot, Inc. (a)	130,800		2,462
Otsuka Kagu Ltd.	12,400		473
Pal Co. Ltd.	25,600		1,323
Sa Sa International Holdings Ltd.	1,216,000		492
Staples, Inc.	332,100		8,432
USS Co. Ltd.	19,740		1,639
Wyevale Garden Centres PLC	116,000		774
			276,621
Textiles Apparel & Luxury Goods - 0.1%
Adidas-Salomon AG	22,500		2,623
Arena Brands Holding Corp. Class B (l)	130,444		1,962
Billabong International Ltd.	143,800		856
Bulgari Spa	142,400		1,301
Puma AG	6,900		1,524
Ted Baker PLC	358,600		2,922
			11,188
TOTAL CONSUMER DISCRETIONARY			784,016
CONSUMER STAPLES - 4.8%
Beverages - 1.0%
PepsiCo, Inc.	815,370		43,908
Pernod-Ricard	49,000		5,976
The Coca-Cola Co.	1,254,250		63,089
			112,973
Food & Staples Retailing - 1.8%
Boots Group PLC	87,800		1,004
Common Stocks - continued
	Shares		Value (Note 1) (000s)
CONSUMER STAPLES - continued
Food & Staples Retailing - continued
Casino Guichard Perrachon et Compagnie	18,900		$ 1,817
CVS Corp.	2,774,400		97,936
Ito Yokado Ltd.	53,000		2,409
Lawson, Inc.	24,900		953
Safeway, Inc. (a)	2,115,000		43,527
Wal-Mart Stores, Inc.	973,700		58,120
			205,766
Food Products - 0.4%
Kraft Foods, Inc. Class A	145,000		4,641
People's Food Holdings Ltd.	768,000		684
Unilever NV (NY Shares)	566,600		39,345
Unilever PLC	781,000		7,869
			52,539
Household Products - 0.3%
Kimberly-Clark Corp.	80,400		5,073
Procter & Gamble Co.	275,600		28,905
Reckitt Benckiser PLC	88,000		2,185
			36,163
Personal Products - 0.6%
Alberto-Culver Co.	1,264,700		55,482
Amorepacific Corp.	6,070		1,044
Estee Lauder Companies, Inc. Class A	87,600		3,884
Hengan International Group Co. Ltd.	628,000		423
L'Oreal SA	45,500		3,492
			64,325
Tobacco - 0.7%
Altria Group, Inc.	1,417,100		77,161
TOTAL CONSUMER STAPLES			548,927
ENERGY - 2.8%
Energy Equipment & Services - 1.5%
BJ Services Co. (a)	48,600		2,103
China Oilfield Services Ltd. (H Shares)	1,414,000		426
Diamond Offshore Drilling, Inc.	1,515,500		36,660
ENSCO International, Inc.	1,181,200		33,274
GlobalSantaFe Corp.	1,646,986		45,737
Grant Prideco, Inc. (a)	263,800		4,089
Common Stocks - continued
	Shares		Value (Note 1) (000s)
ENERGY - continued
Energy Equipment & Services - continued
Nabors Industries Ltd. (a)	223,600		$ 10,230
Transocean, Inc. (a)	1,453,300		40,533
			173,052
Oil & Gas - 1.3%
BP PLC sponsored ADR	53,900		2,760
ChevronTexaco Corp.	540,200		47,419
China Petroleum & Chemical Corp. (H Shares)	756,000		290
ConocoPhillips	967,051		67,510
Exxon Mobil Corp.	484,700		20,159
Repsol YPF SA	147,700		3,074
Royal Dutch Petroleum Co. (Hague Registry)	100,500		4,782
			145,994
TOTAL ENERGY			319,046
FINANCIALS - 13.2%
Capital Markets - 1.7%
3i Group PLC	392,800		4,561
D. Carnegie & Co. AB	108,000		1,233
DAB Bank AG (a)	454,800		4,678
JAFCO Co. Ltd.	13,800		1,346
Macquarie Bank Ltd.	23,000		631
Merrill Lynch & Co., Inc.	959,100		57,124
Mitsubishi Securities Co. Ltd.	38,000		522
Morgan Stanley	2,033,500		116,520
Nikko Cordial Corp.	113,000		748
Nomura Holdings, Inc.	136,000		2,481
			189,844
Commercial Banks - 2.1%
Australia & New Zealand Banking Group Ltd.	249,300		3,624
Banca Intesa Spa	317,500		1,052
Banca Nazionale del Lavoro (BNL) (a)	521,500		1,186
Banco Espanol de Credito SA (Reg.)	89,000		1,082
Bank of America Corp.	734,500		59,480
Bank One Corp.	1,509,550		82,301
Chinatrust Financial Holding Co.	703,000		843
Commonwealth Bank of Australia	25,400		649
FleetBoston Financial Corp.	1,219,000		54,733
Hana Bank	34,040		707
Common Stocks - continued
	Shares		Value (Note 1) (000s)
FINANCIALS - continued
Commercial Banks - continued
Kookmin Bank	39,240		$ 1,596
Mitsubishi Tokyo Financial Group, Inc. (MTFG)	327		3,247
Mizuho Financial Group, Inc. (a)	552		2,372
National Australia Bank Ltd.	63,300		1,499
Shinhan Financial Group Co. Ltd.	83,300		1,538
St. George Bank Ltd.	66,400		1,076
Sumitomo Mitsui Financial Group, Inc.	643		4,748
Synovus Financial Corp.	542,500		13,264
Taishin Financial Holdings Co. Ltd.	2,090,000		2,100
UFJ Holdings, Inc. (a)	591		3,752
Westpac Banking Corp.	62,900		846
Wing Hang Bank Ltd.	168,000		1,065
			242,760
Consumer Finance - 0.2%
Aeon Credit Service Ltd.	29,800		1,858
Aiful Corp.	9,900		1,013
Cattles PLC	308,900		1,927
MBNA Corp.	309,500		8,551
ORIX Corp.	11,200		1,236
SFCG Co. Ltd.	8,780		1,768
			16,353
Diversified Financial Services - 2.1%
Citigroup, Inc.	4,462,766		230,725
Deutsche Boerse AG	113,846		6,475
Fubon Financial Holding Co. Ltd.	993,000		1,043
Hong Kong Exchanges & Clearing Ltd.	414,000		887
ING Groep NV (Certificaten Van Aandelen)	114,600		2,527
London Stock Exchange PLC	276,600		1,790
OMHEX AB	80,900		1,133
			244,580
Insurance - 4.6%
AFLAC, Inc.	166,600		6,687
Allianz AG (Reg.)	33,400		3,647
Allmerica Financial Corp. (a)	328,200		11,339
AMBAC Financial Group, Inc.	267,500		19,736
American International Group, Inc.	4,689,969		334,629
Assurances Generales France SA (Bearer)	17,600		1,095
CNP Assurances	29,600		1,714
Common Stocks - continued
	Shares		Value (Note 1) (000s)
FINANCIALS - continued
Insurance - continued
Corporacion Mapfre SA:
rights 4/7/04 (a)	61,100		$ 24
(Reg.)	130,600		1,573
Hartford Financial Services Group, Inc.	829,180		52,819
MBIA, Inc.	347,500		21,788
MetLife, Inc.	1,124,400		40,119
Millea Holdings, Inc.	143		2,222
PartnerRe Ltd.	130,700		7,378
Promina Group Ltd.	491,270		1,397
Prudential PLC	309,700		2,558
QBE Insurance Group Ltd.	172,349		1,477
Skandia Foersaekrings AB	935,600		3,700
St. Paul Companies, Inc.	165,100		6,606
Swiss Life Holding (a)	3,090		478
Travelers Property Casualty Corp. Class B	475,851		8,218
			529,204
Real Estate - 0.1%
Cheung Kong Holdings Ltd.	58,000		488
Hong Kong Land Holdings Ltd.	498,000		901
Japan Retail Fund Investment Corp.	61		450
Mitsubishi Estate Co. Ltd.	137,000		1,854
Sumitomo Realty & Development Co. Ltd.	74,000		960
Sun Hung Kai Properties Ltd.	208,000		1,902
			6,555
Thrifts & Mortgage Finance - 2.4%
Fannie Mae	3,098,200		230,351
Greenpoint Financial Corp.	176,400		7,710
MGIC Investment Corp.	474,900		30,503
New York Community Bancorp, Inc.	176,267		6,042
			274,606
TOTAL FINANCIALS			1,503,902
HEALTH CARE - 10.0%
Biotechnology - 0.1%
Actelion Ltd. (Reg.) (a)	16,801		1,819
Celltech Group PLC (a)	173,400		1,490
Common Stocks - continued
	Shares		Value (Note 1) (000s)
HEALTH CARE - continued
Biotechnology - continued
CSL Ltd.	122,800		$ 1,975
Global Bio-Chem Technology Group Co. Ltd.	680,000		567
			5,851
Health Care Equipment & Supplies - 0.6%
Axis Shield PLC (a)	163,900		469
Baxter International, Inc.	2,217,700		68,505
Coloplast AS Series B	32,900		3,059
Phonak Holding AG	37,140		895
Synthes-Stratec, Inc.	1,054		1,082
			74,010
Health Care Providers & Services - 3.4%
Cardinal Health, Inc.	5,548,280		382,257
Fresenius Medical Care AG	32,800		2,168
Henry Schein, Inc. (a)	101,300		7,235
			391,660
Pharmaceuticals - 5.9%
Galen Holdings PLC	341,600		5,205
Johnson & Johnson	2,583,000		131,010
Merck & Co., Inc.	2,164,820		95,663
Novartis AG sponsored ADR	99,600		4,243
Novo Nordisk AS Series B	79,200		3,682
Pfizer, Inc.	6,494,900		227,646
Recordati Spa	163,212		2,847
Roche Holding AG (participation certificate)	56,020		5,480
Schering-Plough Corp.	1,692,007		27,444
Shire Pharmaceuticals Group PLC (a)	558,300		5,477
SkyePharma PLC (a)	598,400		649
Takeda Chemical Industries Ltd.	62,400		2,777
Tong Ren Tang Technologies Co. Ltd. (H Shares)	218,000		518
Wyeth	4,200,400		157,725
Yamanouchi Pharmaceutical Co. Ltd.	66,400		2,280
			672,646
TOTAL HEALTH CARE			1,144,167
INDUSTRIALS - 3.2%
Aerospace & Defense - 0.2%
United Technologies Corp.	242,400		20,919
Common Stocks - continued
	Shares		Value (Note 1) (000s)
INDUSTRIALS - continued
Air Freight & Logistics - 0.0%
Yamato Transport Co. Ltd.	17,000		$ 285
Building Products - 0.0%
Asahi Glass Co. Ltd.	192,000		2,070
Commercial Services & Supplies - 0.2%
Aramark Corp. Class B	246,000		6,743
ChoicePoint, Inc. (a)	479,956		18,253
Meitec Corp.	24,500		923
Prosegur Comp Securidad SA (Reg.)	11,000		177
Riso Kyoiku Co. Ltd.	265		483
Riso Kyoiku Co. Ltd. New	530		737
Sumisho Lease Co. Ltd.	29,800		1,189
Teraoka Seisakusho Co. Ltd.	7,000		78
			28,583
Electrical Equipment - 0.1%
ABB Ltd. (Switzerland) (Reg.) (a)	380,240		2,245
Alstom SA sponsored ADR	565,800		1,381
Grupo Auxiliar Metalurgico SA (Gamesa)	60,100		2,468
			6,094
Industrial Conglomerates - 2.3%
China Merchants Holdings International Co. Ltd.	490,000		689
General Electric Co.	6,003,260		183,219
Hutchison Whampoa Ltd.	81,000		582
LG Chemical Investment Ltd.	38,270		437
Tyco International Ltd.	2,678,500		76,739
			261,666
Machinery - 0.3%
Ingersoll-Rand Co. Ltd. Class A	490,400		33,176
Sulzer AG (Reg.)	3,180		792
			33,968
Marine - 0.0%
A.P. Moller - Maersk AS Series B	140		1,001
Road & Rail - 0.1%
CSX Corp.	264,500		8,012
East Japan Railway Co.	220		1,154
Union Pacific Corp.	69,200		4,140
			13,306
Common Stocks - continued
	Shares		Value (Note 1) (000s)
INDUSTRIALS - continued
Trading Companies & Distributors - 0.0%
Mitsui & Co. Ltd.	119,000		$ 1,066
Sumitomo Corp.	99,000		890
			1,956
TOTAL INDUSTRIALS			369,848
INFORMATION TECHNOLOGY - 6.2%
Communications Equipment - 0.8%
Alcatel SA sponsored ADR (a)	230,500		3,653
Cisco Systems, Inc. (a)	1,593,814		37,487
Comverse Technology, Inc. (a)	795,900		14,438
Motorola, Inc.	1,514,200		26,650
TANDBERG Television ASA (a)	636,700		3,887
Telefonaktiebolaget LM Ericsson (B Shares) (a)	1,134,400		3,148
			89,263
Computers & Peripherals - 1.0%
Dell, Inc. (a)	1,662,500		55,893
Diebold, Inc.	125,900		6,058
Hewlett-Packard Co.	1,911,100		43,650
Sun Microsystems, Inc. (a)	2,937,700		12,221
			117,822
Electronic Equipment & Instruments - 0.7%
AU Optronics Corp.	441,000		850
Citizen Electronics Co. Ltd.	7,650		473
Flextronics International Ltd. (a)	829,600		14,286
Hon Hai Precision Industries Co. Ltd.	332,000		1,436
Hoya Corp.	17,300		1,684
Interflex Co. Ltd.	41,710		971
Jabil Circuit, Inc. (a)	401,400		11,813
Kingboard Chemical Holdings Ltd.	722,000		1,390
Kudelski SA (Bearer) (a)	27,450		889
Kyocera Corp.	21,700		1,819
Merry Electronics Co. Ltd.	603,000		1,345
Murata Manufacturing Co. Ltd.	13,700		868
Nidec Corp.	13,500		1,401
Nippon Electric Glass Co. Ltd.	55,000		1,282
Samsung Electro-Mechanics Co. Ltd.	33,470		1,362
Samsung SDI Co. Ltd.	2,620		385
Sanmina-SCI Corp. (a)	877,700		9,663
Common Stocks - continued
	Shares		Value (Note 1) (000s)
INFORMATION TECHNOLOGY - continued
Electronic Equipment & Instruments - continued
Solectron Corp. (a)	3,028,900		$ 16,750
TDK Corp.	18,100		1,380
Thermo Electron Corp. (a)	259,800		7,347
Yageo Corp. (a)	1,152,000		626
			78,020
Internet Software & Services - 0.1%
Easynet Group PLC (a)	1,024,300		2,411
Lastminute.com PLC (a)	195,400		711
T-Online International AG (a)	108,900		1,301
Tiscali Spa (a)	160,800		928
Wanadoo SA (a)	150,600		1,584
			6,935
IT Services - 0.5%
Affiliated Computer Services, Inc. Class A (a)	354,000		18,373
First Data Corp.	869,200		36,645
Hitachi Information Systems Co. Ltd.	11,400		391
Nomura Research Institute Ltd.	6,600		749
			56,158
Office Electronics - 0.0%
Canon, Inc.	70,000		3,626
Konica Minolta Holdings, Inc.	66,000		942
Ricoh Co. Ltd.	94,000		1,929
			6,497
Semiconductors & Semiconductor Equipment - 0.6%
Intel Corp.	828,800		22,543
KLA-Tencor Corp. (a)	51,900		2,613
Lam Research Corp. (a)	263,400		6,640
Linear Technology Corp.	77,050		2,852
Novellus Systems, Inc. (a)	56,700		1,802
Samsung Electronics Co. Ltd.	15,390		7,702
Sanken Electric Co. Ltd.	36,000		492
Shinko Electric Industries Co.Ltd.	29,800		926
Taiwan Semiconductor Manufacturing Co. Ltd. (a)	167,000		304
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR (a)	917,962		9,584
United Microelectronics Corp. sponsored ADR (a)	2,016,051		10,483
Xilinx, Inc. (a)	52,800		2,006
			67,947
Common Stocks - continued
	Shares		Value (Note 1) (000s)
INFORMATION TECHNOLOGY - continued
Software - 2.5%
Autonomy Corp. PLC (a)	221,000		$ 1,080
Business Objects SA sponsored ADR (a)	152,000		4,332
Comptel Oyj	292,800		711
F-Secure Oyj (a)	724,500		1,258
London Bridge Software Holdings PLC	143,800		155
Microsoft Corp.	10,318,465		257,652
NDS Group PLC sponsored ADR (a)	50,300		1,392
Nintendo Co. Ltd.	4,300		433
SAP AG	10,800		1,698
VERITAS Software Corp. (a)	593,266		15,965
			284,676
TOTAL INFORMATION TECHNOLOGY			707,318
MATERIALS - 0.5%
Chemicals - 0.2%
Asahi Kasei Corp.	151,000		885
Clariant AG (Reg.)	69,820		988
Dow Chemical Co.	597,700		24,075
Hitachi Chemical Co. Ltd.	7,900		133
Nitto Denko Corp.	37,900		2,079
			28,160
Construction Materials - 0.0%
Anhui Conch Cement Co. Ltd. Class H	228,000		373
Containers & Packaging - 0.0%
Fuji Seal, Inc.	10,900		459
Metals & Mining - 0.2%
Alcan, Inc.	368,100		16,366
Alcoa, Inc.	75,400		2,616
Alumina Ltd.	95,900		394
BHP Billiton Ltd.	325,400		3,056
Nippon Steel Corp.	421,000		981
Rio Tinto Ltd.	44,155		1,165
			24,578
Common Stocks - continued
	Shares		Value (Note 1) (000s)
MATERIALS - continued
Paper & Forest Products - 0.1%
Bowater, Inc.	99,000		$ 4,319
International Paper Co.	78,200		3,305
			7,624
TOTAL MATERIALS			61,194
TELECOMMUNICATION SERVICES - 3.8%
Diversified Telecommunication Services - 3.5%
BellSouth Corp.	1,639,100		45,387
BT Group PLC	1,503,100		5,019
Completel Europe NV (a)	86,413		3,321
Deutsche Telekom AG (Reg.) (a)	242,800		4,380
France Telecom SA (a)	98,200		2,518
France Telecom SA sponsored ADR	142,900		3,664
Jazztel PLC (a)	3,155,200		1,321
Koninklijke KPN NV	299,100		2,340
Nippon Telegraph & Telephone Corp.	430		2,437
Portugal Telecom SGPS SA sponsored ADR	176,000		1,973
Qwest Communications International, Inc. (a)	8,280,000		35,687
SBC Communications, Inc.	7,406,600		181,758
Singapore Telecommunications Ltd.	495,000		689
Song Networks Holding AB (a)	356,400		2,909
Tele2 AB (B Shares)	29,400		1,354
Telecom Italia Spa	533,200		1,673
Telefonica SA	78,400		1,190
Telefonica SA sponsored ADR	91,100		4,149
Verizon Communications, Inc.	2,722,200		99,469
			401,238
Wireless Telecommunication Services - 0.3%
KDDI Corp.	311		1,751
Nextel Communications, Inc. Class A (a)	938,500		23,209
NTT DoCoMo, Inc.	641		1,420
Vodafone Group PLC	3,869,100		9,247
Vodafone Group PLC sponsored ADR	98,300		2,349
			37,976
TOTAL TELECOMMUNICATION SERVICES			439,214
Common Stocks - continued
	Shares		Value (Note 1) (000s)
UTILITIES - 0.5%
Electric Utilities - 0.5%
FirstEnergy Corp.	645,600		$ 25,230
PG&E Corp. (a)	587,700		17,026
TXU Corp.	302,700		8,675
			50,931
Gas Utilities - 0.0%
NiSource, Inc.	243,700		5,179
Multi-Utilities & Unregulated Power - 0.0%
Public Service Enterprise Group, Inc.	29,600		1,391
RWE AG	45,400		2,043
			3,434
TOTAL UTILITIES			59,544
TOTAL COMMON STOCKS (Cost $5,489,532)		5,937,176
Preferred Stocks - 0.2%

Convertible Preferred Stocks - 0.0%
CONSUMER DISCRETIONARY - 0.0%
Media - 0.0%
ITV PLC (a)	119,544		169
Nonconvertible Preferred Stocks - 0.2%
CONSUMER DISCRETIONARY - 0.1%
Automobiles - 0.0%
Porsche AG (non-vtg.)	4,900		2,964
Media - 0.1%
CSC Holdings, Inc.:
(depositary shares) Series M, 11.125%	54,190		5,649
Series H, 11.75%	20,185		2,107
Granite Broadcasting Corp. 12.75% pay-in-kind	4,680		2,293
			10,049
TOTAL CONSUMER DISCRETIONARY			13,013
Preferred Stocks - continued
	Shares		Value (Note 1) (000s)
Nonconvertible Preferred Stocks - continued
FINANCIALS - 0.0%
Commercial Banks - 0.0%
Chevy Chase Bank FSB Series C, 8.00%	40,670		$ 1,159
HEALTH CARE - 0.0%
Health Care Providers & Services - 0.0%
Fresenius Medical Care AG	19,200		874
TELECOMMUNICATION SERVICES - 0.1%
Diversified Telecommunication Services - 0.1%
Telecom Italia Spa (Risp)	792,100		1,805
TOTAL NONCONVERTIBLE PREFERRED STOCKS			16,851
TOTAL PREFERRED STOCKS (Cost $17,400)		17,020

Corporate Bonds - 14.4%
	Principal Amount (000s)
Convertible Bonds - 0.4%
CONSUMER DISCRETIONARY - 0.1%
Specialty Retail - 0.1%
Gap, Inc. 5.75% 3/15/09 (e)	$ 4,359		6,328
HEALTH CARE - 0.0%
Health Care Providers & Services - 0.0%
Service Corp. International (SCI) 6.75% 6/22/08	2,560		2,907
INDUSTRIALS - 0.2%
Industrial Conglomerates - 0.2%
Tyco International Group SA 3.125% 1/15/23	17,040		24,841
INFORMATION TECHNOLOGY - 0.1%
Communications Equipment - 0.1%
Brocade Communications Systems, Inc. 2% 1/1/07	840		777
CIENA Corp. 3.75% 2/1/08	2,800		2,548
			3,325
Semiconductors & Semiconductor Equipment - 0.0%
Amkor Technology, Inc. 5% 3/15/07	2,260		2,181
TOTAL INFORMATION TECHNOLOGY			5,506
TOTAL CONVERTIBLE BONDS			39,582
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - 14.0%
CONSUMER DISCRETIONARY - 2.5%
Auto Components - 0.2%
DaimlerChrysler NA Holding Corp.:
4.05% 6/4/08	$ 2,820		$ 2,850
4.75% 1/15/08	10,580		11,031
7.2% 9/1/09	2,000		2,276
Dana Corp. 6.5% 3/1/09	910		969
Stoneridge, Inc. 11.5% 5/1/12	2,915		3,469
United Components, Inc. 9.375% 6/15/13	930		1,004
Visteon Corp. 7% 3/10/14	1,790		1,774
			23,373
Automobiles - 0.1%
General Motors Corp. 8.25% 7/15/23	8,895		9,929
Hotels, Restaurants & Leisure - 0.6%
Argosy Gaming Co. 7% 1/15/14 (e)	4,020		4,191
Bally Total Fitness Holding Corp.:
9.875% 10/15/07	1,144		932
10.5% 7/15/11	870		811
Boyd Gaming Corp.:
7.75% 12/15/12	2,300		2,467
8.75% 4/15/12	1,690		1,859
Chumash Casino & Resort Enterprise 9% 7/15/10 (e)	2,750		3,039
Circus Circus Enterprises, Inc. 7.625% 7/15/13	2,535		2,763
Friendly Ice Cream Corp. 8.375% 6/15/12 (e)	2,200		2,255
Host Marriott LP 7.125% 11/1/13	5,075		5,253
ITT Corp. 7.375% 11/15/15	1,850		1,998
Mandalay Resort Group 9.375% 2/15/10	1,030		1,226
MGM MIRAGE:
5.875% 2/27/14	4,305		4,300
5.875% 2/27/14 (e)	2,560		2,557
Mohegan Tribal Gaming Authority:
8% 4/1/12	1,900		2,095
8.375% 7/1/11	1,405		1,556
MTR Gaming Group, Inc. 9.75% 4/1/10	1,650		1,766
Park Place Entertainment Corp. 7.875% 3/15/10	1,610		1,795
Royal Caribbean Cruises Ltd. 6.875% 12/1/13	4,990		5,215
Six Flags, Inc.:
8.875% 2/1/10	2,535		2,611
9.75% 4/15/13	3,665		3,876
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
CONSUMER DISCRETIONARY - continued
Hotels, Restaurants & Leisure - continued
Station Casinos, Inc.:
6% 4/1/12 (e)	$ 3,650		$ 3,750
6.5% 2/1/14 (e)	3,570		3,588
Sun International Hotels Ltd./Sun International North America, Inc. 8.875% 8/15/11	4,045		4,470
Town Sports International Holdings, Inc. 0% 2/1/14 (d)(e)	1,725		923
Town Sports International, Inc. 9.625% 4/15/11	2,875		3,033
Venetian Casino Resort LLC/Las Vegas Sands, Inc. 11% 6/15/10	3,830		4,395
			72,724
Household Durables - 0.4%
Beazer Homes USA, Inc.:
6.5% 11/15/13 (e)	2,135		2,242
8.375% 4/15/12	2,590		2,894
D.R. Horton, Inc. 6.875% 5/1/13	880		972
Juno Lighting, Inc. 11.875% 7/1/09	4,310		4,622
K. Hovnanian Enterprises, Inc.:
6.5% 1/15/14	640		654
8.875% 4/1/12	7,300		8,213
10.5% 10/1/07	560		661
KB Home 7.75% 2/1/10	3,345		3,613
Sealy Mattress Co. 8.25% 6/15/14 (e)	2,980		2,980
Standard Pacific Corp.:
5.125% 4/1/09	1,840		1,835
6.875% 5/15/11	2,490		2,639
7.75% 3/15/13	210		233
9.25% 4/15/12	2,220		2,597
Technical Olympic USA, Inc. 7.5% 3/15/11 (e)	1,870		1,870
WCI Communities, Inc. 7.875% 10/1/13	1,850		1,980
William Lyon Homes, Inc.:
7.5% 2/15/14 (e)	2,645		2,738
10.75% 4/1/13	4,935		5,836
			46,579
Leisure Equipment & Products - 0.1%
The Hockey Co. 11.25% 4/15/09	5,110		5,723
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
CONSUMER DISCRETIONARY - continued
Media - 0.8%
AMC Entertainment, Inc.:
8% 3/1/14 (e)	$ 2,080		$ 2,064
9.5% 2/1/11	2,127		2,228
AOL Time Warner, Inc. 7.625% 4/15/31	5,100		5,967
British Sky Broadcasting Group PLC (BSkyB) yankee 8.2% 7/15/09	3,750		4,524
Cablevision Systems Corp.:
5.66% 4/1/09 (e)(i)	3,580		3,580
8% 4/15/12 (e)	3,780		3,780
Cinemark, Inc. 0% 3/15/14 (d)(e)	4,400		2,745
Comcast Corp. 7.05% 3/15/33	5,000		5,556
Continental Cablevision, Inc. 9% 9/1/08	2,650		3,221
Corus Entertainment, Inc. 8.75% 3/1/12	1,960		2,156
CSC Holdings, Inc. 7.875% 2/15/18	2,835		3,041
EchoStar DBS Corp. 5.75% 10/1/08 (e)	4,570		4,707
Granite Broadcasting Corp. 9.75% 12/1/10 (e)	1,590		1,542
Gray Television, Inc. 9.25% 12/15/11	2,385		2,647
Houghton Mifflin Co.:
0% 10/15/13 (d)(e)	920		501
8.25% 2/1/11	2,130		2,183
9.875% 2/1/13	1,985		2,045
Innova S. de R.L. 9.375% 9/19/13	2,580		2,812
LBI Media, Inc. 10.125% 7/15/12	2,815		3,216
Liberty Media Corp. 5.7% 5/15/13	3,000		3,132
News America Holdings, Inc. 7.7% 10/30/25	8,440		10,151
PEI Holdings, Inc. 11% 3/15/10	2,195		2,535
Reader's Digest Association, Inc. 6.5% 3/1/11 (e)	2,790		2,874
Sinclair Broadcast Group, Inc. 8% 3/15/12	3,665		3,972
Spanish Broadcasting System, Inc. 9.625% 11/1/09	2,175		2,300
Telewest PLC 11% 10/1/07 (c)	4,580		2,885
TV Azteca SA de CV yankee 10.5% 2/15/07	1,105		1,138
Videotron LTEE 6.875% 1/15/14	1,000		1,040
			88,542
Multiline Retail - 0.0%
Barneys, Inc. 9% 4/1/08	1,630		1,679
Specialty Retail - 0.3%
Asbury Automotive Group, Inc.:
8% 3/15/14 (e)	2,100		2,100
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
CONSUMER DISCRETIONARY - continued
Specialty Retail - continued
Asbury Automotive Group, Inc.: - continued
9% 6/15/12	$ 3,125		$ 3,313
AutoNation, Inc. 9% 8/1/08	2,255		2,627
J. Crew Intermediate LLC 0% 5/15/08 (d)	5,352		4,121
NBC Acquisition Corp. 0% 3/15/13 (d)(e)	4,270		2,797
Nebraska Book Co., Inc. 8.625% 3/15/12 (e)	2,970		3,059
Sonic Automotive, Inc. 8.625% 8/15/13	3,060		3,312
Toys 'R' US, Inc. 7.875% 4/15/13	4,275		4,478
United Rentals North America, Inc.:
6.5% 2/15/12 (e)	870		861
7% 2/15/14 (e)	1,130		1,062
7.75% 11/15/13 (e)	6,580		6,383
			34,113
Textiles Apparel & Luxury Goods - 0.0%
Levi Strauss & Co.:
7% 11/1/06	1,155		860
11.625% 1/15/08	1,360		1,040
12.25% 12/15/12	875		661
			2,561
TOTAL CONSUMER DISCRETIONARY			285,223
CONSUMER STAPLES - 0.5%
Food & Staples Retailing - 0.2%
Rite Aid Corp.:
6% 12/15/05 (e)	3,305		3,272
6.875% 8/15/13	5,100		4,667
8.125% 5/1/10	3,330		3,596
9.25% 6/1/13	3,160		3,334
9.5% 2/15/11	925		1,036
Safeway, Inc. 6.5% 3/1/11	5,500		6,140
			22,045
Food Products - 0.2%
Del Monte Corp. 9.25% 5/15/11	10,695		11,898
Doane Pet Care Co. 9.75% 5/15/07	4,710		4,098
Dole Food Co., Inc. 7.25% 6/15/10	3,770		3,845
Kraft Foods, Inc. 5.25% 6/1/07	2,950		3,181
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
CONSUMER STAPLES - continued
Food Products - continued
Smithfield Foods, Inc.:
7.625% 2/15/08	$ 965		$ 1,033
7.75% 5/15/13	815		892
8% 10/15/09	390		431
United Agriculture Products, Inc. 8.25% 12/15/11 (e)	1,440		1,505
			26,883
Tobacco - 0.1%
Altria Group, Inc. 7% 11/4/13	4,215		4,645
Philip Morris Companies, Inc.:
7% 7/15/05	5,636		5,940
7.75% 1/15/27	2,400		2,675
			13,260
TOTAL CONSUMER STAPLES			62,188
ENERGY - 0.8%
Energy Equipment & Services - 0.2%
Grant Prideco, Inc.:
9% 12/15/09	880		990
9.625% 12/1/07	3,710		4,211
Hanover Compressor Co.:
0% 3/31/07	5,345		4,089
8.625% 12/15/10	2,300		2,473
Key Energy Services, Inc. 8.375% 3/1/08	5,150		5,433
SESI LLC 8.875% 5/15/11	4,930		5,423
Weatherford International Ltd. 4.95% 10/15/13	975		991
			23,610
Oil & Gas - 0.6%
Amerada Hess Corp.:
6.65% 8/15/11	640		707
7.125% 3/15/33	1,660		1,743
7.375% 10/1/09	1,459		1,671
Chesapeake Energy Corp.:
8.375% 11/1/08	5,905		6,496
9% 8/15/12	1,835		2,119
El Paso Production Holding Co. 7.75% 6/1/13	3,570		3,320
Empresa Nacional de Petroleo 6.75% 11/15/12 (e)	3,750		4,249
General Maritime Corp. 10% 3/15/13	5,460		6,115
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
ENERGY - continued
Oil & Gas - continued
Overseas Shipholding Group, Inc.:
7.5% 2/15/24	$ 695		$ 704
8.25% 3/15/13	5,995		6,595
Pecom Energia SA 9% 5/1/09 (Reg. S)	2,175		2,295
Petrobras International Finance Co. Ltd. 8.375% 12/10/18	2,185		2,209
Plains Exploration & Production Co. LP:
Series B, 8.75% 7/1/12	1,505		1,686
8.75% 7/1/12	2,230		2,498
Range Resources Corp. 7.375% 7/15/13	2,615		2,720
Teekay Shipping Corp. 8.875% 7/15/11	7,920		9,187
The Coastal Corp.:
6.375% 2/1/09	1,365		1,126
6.5% 5/15/06	1,035		953
6.5% 6/1/08	885		746
7.5% 8/15/06	3,010		2,799
7.75% 6/15/10	3,870		3,348
7.75% 10/15/35	1,655		1,283
9.625% 5/15/12	6,590		6,195
Western Oil Sands, Inc. 8.375% 5/1/12	3,900		4,612
			75,376
TOTAL ENERGY			98,986
FINANCIALS - 3.5%
Capital Markets - 0.2%
Bank of New York Co., Inc.:
3.4% 3/15/13 (i)	3,715		3,708
4.25% 9/4/12 (i)	3,570		3,684
Morgan Stanley:
4.75% 4/1/14	3,100		3,019
6.6% 4/1/12	11,865		13,641
			24,052
Commercial Banks - 0.2%
Bank of America Corp. 7.4% 1/15/11	2,050		2,461
Chevy Chase Bank FSB 6.875% 12/1/13	1,605		1,661
Export-Import Bank of Korea:
4.125% 2/10/09 (e)	1,215		1,238
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
FINANCIALS - continued
Commercial Banks - continued
Export-Import Bank of Korea: - continued
5.25% 2/10/14 (e)	$ 4,545		$ 4,706
Korea Development Bank 3.875% 3/2/09	4,250		4,284
Wachovia Corp. 3.625% 2/17/09	5,400		5,488
			19,838
Consumer Finance - 0.4%
Capital One Bank:
4.875% 5/15/08	1,800		1,897
6.5% 6/13/13	3,750		4,079
6.875% 2/1/06	700		756
Ford Motor Credit Co. 7.375% 10/28/09	5,280		5,796
General Motors Acceptance Corp. 7.75% 1/19/10	13,160		14,919
Household Finance Corp.:
5.875% 2/1/09	675		748
6.375% 10/15/11	6,200		7,030
6.375% 11/27/12	3,805		4,306
6.75% 5/15/11	1,125		1,299
Household International, Inc. 8.875% 2/15/08	4,525		5,052
MBNA Corp. 6.25% 1/17/07	1,875		2,054
			47,936
Diversified Financial Services - 2.0%
Ahold Finance USA, Inc.:
6.25% 5/1/09	4,635		4,728
8.25% 7/15/10	3,850		4,235
American Airlines, Inc. pass thru trust certificates:
6.817% 5/23/11	5,000		4,575
6.977% 11/23/22	354		320
7.324% 4/15/11	915		796
7.377% 5/23/19	4,077		3,099
7.379% 5/23/16	2,888		2,195
7.8% 4/1/08	2,205		2,062
8.608% 10/1/12	620		583
10.18% 1/2/13	1,200		900
Cadbury Schweppes U.S. Finance LLC 3.875% 10/1/08 (e)	2,950		3,004
Cellu Tissue Holdings, Inc. 9.75% 3/15/10 (e)	1,580		1,564
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
FINANCIALS - continued
Diversified Financial Services - continued
Charter Communications Holding II LLC/Charter Communications Holdings II Capital Corp. 10.25% 9/15/10 (e)	$ 935		$ 968
Charter Communications Holdings LLC/Charter Communications Holdings Capital Corp. 8.625% 4/1/09	1,430		1,190
Citigroup, Inc. 7.25% 10/1/10	2,050		2,441
Continental Airlines, Inc. pass thru trust certificates:
6.748% 9/15/18	236		201
6.795% 8/2/18	814		700
6.9% 1/2/17	1,443		1,212
6.954% 2/2/11	370		314
7.461% 4/1/13	681		586
7.73% 9/15/12	627		508
7.82% 4/15/15	783		666
8.307% 4/2/18	3,075		2,767
8.321% 11/1/06	1,320		1,241
Dana Credit Corp. 8.375% 8/15/07 (e)	885		974
Delta Air Lines, Inc. pass thru trust certificates:
7.299% 9/18/06	880		739
7.57% 11/18/10	6,255		6,229
7.779% 11/18/05	1,500		1,275
7.779% 1/2/12	1,403		1,066
Deutsche Telekom International Finance BV:
8.5% 6/15/10	4,500		5,525
8.75% 6/15/30	3,800		4,982
Dex Media West LLC/Dex Media West Finance Co.:
8.5% 8/15/10 (e)	1,370		1,507
9.875% 8/15/13 (e)	1,610		1,787
FIMEP SA 10.5% 2/15/13	3,380		3,929
Gerdau AmeriSteel Corp./GUSAP Partners 10.375% 7/15/11	3,955		4,489
Goldman Sachs Capital I 6.345% 2/15/34	4,000		4,113
Hilcorp Energy I LP/Hilcorp Finance Co. 10.5% 9/1/10 (e)	3,405		3,780
IOS Capital LLC 7.25% 6/30/08	2,130		2,338
Ispat Inland ULC 9.75% 4/1/14 (e)	4,790		4,958
Jostens Holding Corp. 0% 12/1/13 (d)	2,295		1,538
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
FINANCIALS - continued
Diversified Financial Services - continued
Leucadia National Corp.:
7% 8/15/13	$ 3,440		$ 3,560
7% 8/15/13 (e)	1,430		1,480
Level 3 Financing, Inc. 10.75% 10/15/11 (e)	2,490		2,415
Midland Funding Corp. II 11.75% 7/23/05	2,039		2,151
Mizuho Financial Group Cayman Ltd. 5.79% 4/15/14 (e)	6,305		6,468
Mobile Telesystems Finance SA 8.375% 10/14/10 (e)	380		395
MSW Energy Holding LLC/MSW Energy Finance Co., Inc. 8.5% 9/1/10	570		627
MSW Energy Holdings II LLC/MSW Finance Co. II, Inc. 7.375% 9/1/10 (e)	2,040		2,162
National Beef Packing Co. LLC/National Beef Finance Corp. 10.5% 8/1/11 (e)	1,920		1,978
Nexstar Finance, Inc. 7% 1/15/14 (e)	1,210		1,195
NiSource Finance Corp. 7.875% 11/15/10	2,325		2,812
Northern Telecom Capital Corp.:
7.4% 6/15/06	900		941
7.875% 6/15/26	925		962
Northwest Airlines, Inc. pass thru trust certificates:
7.068% 7/2/17	1,007		876
7.67% 1/2/15	598		526
Pemex Project Funding Master Trust 7.375% 12/15/14	7,630		8,488
Petronas Capital Ltd. 7.875% 5/22/22 (e)	6,000		7,219
Prime Property Funding II 6.25% 5/15/07	3,990		4,414
Qwest Capital Funding, Inc.:
7% 8/3/09	4,510		3,969
7.25% 2/15/11	4,275		3,677
7.75% 8/15/06	16,650		16,733
Rabobank Capital Funding Trust II 5.26% 12/31/49 (e)(i)	3,860		4,003
Sensus Metering Systems, Inc. 8.625% 12/15/13 (e)	2,010		1,980
Ship Finance International Ltd. 8.5% 12/15/13 (e)	9,420		9,302
Sprint Capital Corp.:
6.125% 11/15/08	1,900		2,094
6.875% 11/15/28	6,100		6,335
Telecom Italia Capital:
4% 11/15/08 (e)	2,060		2,106
5.25% 11/15/13 (e)	2,060		2,124
TIG Capital Trust I 8.597% 1/15/27 (e)	1,300		1,131
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
FINANCIALS - continued
Diversified Financial Services - continued
TRW Automotive Acquisition Corp.:
9.375% 2/15/13	$ 526		$ 605
11% 2/15/13	263		313
U.S. West Capital Funding, Inc. 6.375% 7/15/08	4,677		4,163
Universal City Development Partners Ltd./UCDP Finance, Inc. 11.75% 4/1/10	4,615		5,353
Verizon Global Funding Corp. 7.25% 12/1/10	6,570		7,741
Western Financial Bank 9.625% 5/15/12	5,820		6,635
WH Holdings Ltd./WH Capital Corp. 9.5% 4/1/11 (e)	800		836
Xerox Capital Trust I 8% 2/1/27	6,100		6,009
			223,862
Insurance - 0.2%
Crum & Forster Holdings Corp. 10.375% 6/15/13 (e)	4,025		4,528
Oil Insurance Ltd. 5.15% 8/15/33 (e)(i)	2,700		2,803
Principal Life Global Funding I:
5.125% 6/28/07 (e)	16,000		17,194
6.25% 2/15/12 (e)	4,310		4,889
			29,414
Real Estate - 0.4%
CarrAmerica Realty Corp. 5.25% 11/30/07	3,500		3,769
CenterPoint Properties Trust:
4.75% 8/1/10	1,500		1,551
6.75% 4/1/05	4,360		4,542
EOP Operating LP 7.75% 11/15/07	11,045		12,861
ERP Operating LP 5.2% 4/1/13	1,200		1,249
Gables Realty LP 5.75% 7/15/07	1,000		1,084
iStar Financial, Inc. 6.5% 12/15/13	2,140		2,252
LNR Property Corp.:
7.25% 10/15/13 (e)	2,980		3,114
7.625% 7/15/13	1,460		1,562
Mack-Cali Realty LP 7.25% 3/15/09	2,350		2,722
Omega Healthcare Investors, Inc. 7% 4/1/14 (e)	2,450		2,511
Senior Housing Properties Trust:
7.875% 4/15/15	1,800		1,944
8.625% 1/15/12	2,830		3,212
			42,373
Thrifts & Mortgage Finance - 0.1%
Countrywide Home Loans, Inc. 4% 3/22/11	3,000		2,969
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
FINANCIALS - continued
Thrifts & Mortgage Finance - continued
Independence Community Bank Corp. 3.75% 4/1/14 (i)	$ 1,570		$ 1,561
Washington Mutual, Inc. 4.625% 4/1/14	5,000		4,900
			9,430
TOTAL FINANCIALS			396,905
HEALTH CARE - 0.3%
Health Care Equipment & Supplies - 0.0%
Fisher Scientific International, Inc. 8% 9/1/13	2,130		2,375
Health Care Providers & Services - 0.3%
AmeriPath, Inc.:
10.5% 4/1/13	1,180		1,204
10.5% 4/1/13 (e)	2,340		2,387
AmerisourceBergen Corp. 7.25% 11/15/12	3,840		4,205
Concentra Operating Corp. 9.5% 8/15/10	1,320		1,472
Genesis HealthCare Corp. 8% 10/15/13 (e)	2,560		2,707
Mariner Health Care, Inc. 8.25% 12/15/13 (e)	4,630		4,723
PacifiCare Health Systems, Inc. 10.75% 6/1/09	3,104		3,632
Psychiatric Solutions, Inc. 10.625% 6/15/13	3,035		3,467
Tenet Healthcare Corp. 7.375% 2/1/13	4,415		3,962
			27,759
Pharmaceuticals - 0.0%
Biovail Corp. yankee 7.875% 4/1/10	1,450		1,407
TOTAL HEALTH CARE			31,541
INDUSTRIALS - 1.0%
Aerospace & Defense - 0.1%
BE Aerospace, Inc.:
8% 3/1/08	3,765		3,389
9.5% 11/1/08	1,790		1,718
Orbital Sciences Corp. 9% 7/15/11	1,900		2,085
			7,192
Airlines - 0.1%
AMR Corp. 9% 8/1/12	3,920		3,332
Continental Airlines, Inc.:
7.875% 7/2/18	3,190		3,166
8% 12/15/05	50		47
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
INDUSTRIALS - continued
Airlines - continued
Delta Air Lines, Inc.:
equipment trust certificates 8.54% 1/2/07	$ 496		$ 426
7.9% 12/15/09	3,015		2,005
10% 8/15/08 (e)	1,575		1,130
10.14% 8/14/12	540		367
			10,473
Building Products - 0.1%
FastenTech, Inc. 11.5% 5/1/11 (e)	2,540		2,832
Jacuzzi Brands, Inc. 9.625% 7/1/10	2,335		2,580
Nortek Holdings, Inc. 0% 5/15/11 (d)(e)	3,625		2,701
Nortek, Inc. 4.17% 12/31/10 (e)(i)	1,880		1,880
			9,993
Commercial Services & Supplies - 0.1%
Allied Waste North America, Inc.:
7.875% 1/1/09	159		166
7.875% 4/15/13	935		1,019
9.25% 9/1/12	3,385		3,842
American Color Graphics, Inc. 10% 6/15/10	485		432
Browning-Ferris Industries, Inc. 6.375% 1/15/08	3,360		3,427
			8,886
Construction & Engineering - 0.0%
Amsted Industries, Inc. 10.25% 10/15/11 (e)	4,110		4,603
Electrical Equipment - 0.0%
General Cable Corp. 9.5% 11/15/10 (e)	1,720		1,879
Industrial Conglomerates - 0.2%
Tyco International Group SA yankee:
6.375% 10/15/11	2,815		3,079
6.75% 2/15/11	15,500		17,261
6.875% 1/15/29	4,250		4,461
			24,801
Machinery - 0.3%
AGCO Corp.:
8.5% 3/15/06	2,130		2,130
9.5% 5/1/08	2,640		2,891
Columbus McKinnon Corp. 10% 8/1/10	410		443
Cummins, Inc. 5.65% 3/1/2098	3,645		2,624
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
INDUSTRIALS - continued
Machinery - continued
Dresser, Inc. 9.375% 4/15/11	$ 5,150		$ 5,614
Dunlop Standard Aerospace Holdings PLC yankee 11.875% 5/15/09	10,145		10,804
Invensys PLC 9.875% 3/15/11 (e)	4,595		4,698
Terex Corp. 7.375% 1/15/14 (e)	5,190		5,553
Trinity Industries, Inc. 6.5% 3/15/14 (e)	1,575		1,571
			36,328
Marine - 0.0%
OMI Corp. 7.625% 12/1/13	2,110		2,184
Road & Rail - 0.1%
Kansas City Southern Railway Co. 7.5% 6/15/09	1,155		1,184
TFM SA de CV yankee:
10.25% 6/15/07	495		512
11.75% 6/15/09	5,360		5,387
			7,083
TOTAL INDUSTRIALS			113,422
INFORMATION TECHNOLOGY - 0.7%
Communications Equipment - 0.1%
Corning, Inc.:
5.9% 3/15/14	2,790		2,769
6.2% 3/15/16	2,270		2,253
L-3 Communications Corp. 6.125% 1/15/14 (e)	2,360		2,419
Lucent Technologies, Inc. 6.45% 3/15/29	3,035		2,565
Motorola, Inc. 6.5% 11/15/28	3,880		3,939
			13,945
Electronic Equipment & Instruments - 0.2%
Flextronics International Ltd. 6.5% 5/15/13	4,140		4,326
Ingram Micro, Inc. 9.875% 8/15/08	2,120		2,364
PerkinElmer, Inc. 8.875% 1/15/13	5,495		6,333
Solectron Corp.:
7.375% 3/1/06	3,775		3,940
9.625% 2/15/09	825		912
			17,875
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
INFORMATION TECHNOLOGY - continued
IT Services - 0.1%
Dex Media, Inc.:
0% 11/15/13 (d)(e)	$ 4,360		$ 2,790
0% 11/15/13 (d)(e)	9,650		6,176
8% 11/15/13 (e)	2,470		2,445
Iron Mountain, Inc.:
6.625% 1/1/16	2,630		2,577
8.625% 4/1/13	1,710		1,864
			15,852
Office Electronics - 0.1%
Xerox Corp.:
7.125% 6/15/10	3,345		3,521
7.2% 4/1/16	1,865		1,921
7.625% 6/15/13	4,450		4,728
			10,170
Semiconductors & Semiconductor Equipment - 0.2%
AMI Semiconductor, Inc. 10.75% 2/1/13	1,312		1,535
Amkor Technology, Inc.:
7.125% 3/15/11 (e)	4,910		4,910
7.75% 5/15/13	3,650		3,723
Micron Technology, Inc. 6.5% 9/30/05 (l)	8,000		7,960
Viasystems, Inc. 10.5% 1/15/11 (e)	2,200		2,453
			20,581
TOTAL INFORMATION TECHNOLOGY			78,423
MATERIALS - 1.7%
Chemicals - 0.4%
Airgas, Inc. 6.25% 7/15/14 (e)	2,070		2,132
Berry Plastics Corp. 10.75% 7/15/12	5,975		6,782
Equistar Chemicals LP/Equistar Funding Corp.:
8.75% 2/15/09	1,025		1,046
10.125% 9/1/08	1,650		1,774
10.625% 5/1/11	8,180		8,834
HMP Equity Holdings Corp. 0% 5/15/08 (e)	3,615		1,916
Huntsman ICI Chemicals LLC 10.125% 7/1/09	3,780		3,818
Huntsman International LLC 9.875% 3/1/09	4,075		4,432
Lyondell Chemical Co.:
9.625% 5/1/07	1,330		1,377
9.875% 5/1/07	1,340		1,394
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
MATERIALS - continued
Chemicals - continued
Millennium America, Inc.:
9.25% 6/15/08	$ 6,530		$ 6,987
9.25% 6/15/08 (e)	980		1,049
Nalco Co.:
7.75% 11/15/11 (e)	1,690		1,749
8.875% 11/15/13 (e)	1,720		1,785
NOVA Chemicals Corp. 6.5% 1/15/12 (e)	1,660		1,710
Pliant Corp. 0% 6/15/09 (d)(e)	2,360		1,888
			48,673
Construction Materials - 0.1%
Texas Industries, Inc. 10.25% 6/15/11	7,155		8,121
U.S. Concrete, Inc. 8.375% 4/1/14 (e)	1,780		1,825
			9,946
Containers & Packaging - 0.3%
Anchor Glass Container Corp. 11% 2/15/13	3,495		4,037
BWAY Corp. 10% 10/15/10	1,120		1,198
Crown European Holdings SA 10.875% 3/1/13	2,220		2,581
Graphic Packaging International, Inc.:
8.5% 8/15/11	1,770		1,982
9.5% 8/15/13	1,770		2,009
Jefferson Smurfit Corp. U.S. 7.5% 6/1/13	6,620		6,951
Owens-Brockway Glass Container, Inc. 8.875% 2/15/09	5,260		5,681
Owens-Illinois, Inc.:
7.35% 5/15/08	2,490		2,453
7.5% 5/15/10	2,255		2,176
7.8% 5/15/18	4,495		4,147
8.1% 5/15/07	2,590		2,642
Sealed Air Corp. 5.625% 7/15/13 (e)	900		943
			36,800
Metals & Mining - 0.4%
AK Steel Corp.:
7.75% 6/15/12	970		856
7.875% 2/15/09	970		878
Allegheny Ludlum Corp. 6.95% 12/15/25	1,955		1,760
Allegheny Technologies, Inc. 8.375% 12/15/11	3,215		3,231
California Steel Industries, Inc. 6.125% 3/15/14 (e)	1,250		1,256
Compass Minerals International, Inc. 0% 6/1/13 (d)	6,290		4,780
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
MATERIALS - continued
Metals & Mining - continued
Corporacion Nacional del Cobre (Codelco) 6.375% 11/30/12 (e)	$ 2,185		$ 2,441
CSN Islands VII Corp. 10.75% 9/12/08 (e)	3,405		3,618
CSN Islands VIII Corp. 9.75% 12/16/13 (e)	2,090		2,059
Falconbridge Ltd. yankee 7.35% 6/5/12	2,500		2,925
Freeport-McMoRan Copper & Gold, Inc.:
6.875% 2/1/14 (e)	3,515		3,418
10.125% 2/1/10	2,790		3,188
Peabody Energy Corp.:
5.875% 4/15/16	2,425		2,437
6.875% 3/15/13	2,880		3,110
Steel Dynamics, Inc.:
9.5% 3/15/09	980		1,093
9.5% 3/15/09 (e)	1,000		1,115
			38,165
Paper & Forest Products - 0.5%
Ainsworth Lumber Co. Ltd. 6.75% 3/15/14 (e)	2,390		2,402
Boise Cascade Corp. 7.68% 3/29/06	7,590		8,069
Bowater, Inc.:
4.11% 3/15/10 (i)	2,760		2,739
6.5% 6/15/13	1,060		1,031
Buckeye Technologies, Inc. 8.5% 10/1/13	2,225		2,392
Georgia-Pacific Corp.:
8% 1/15/14	4,530		5,051
8% 1/15/24 (e)	2,150		2,279
8.125% 5/15/11	4,765		5,420
8.875% 5/15/31	1,135		1,271
9.5% 12/1/11	2,330		2,796
International Paper Co.:
4.25% 1/15/09	885		908
5.5% 1/15/14	2,225		2,308
5.85% 10/30/12	3,080		3,307
Norske Skog Canada Ltd.:
7.375% 3/1/14 (e)	1,230		1,264
8.625% 6/15/11	3,785		4,050
Stone Container Corp. 9.75% 2/1/11	6,430		7,169
Tembec Industries, Inc.:
7.75% 3/15/12	2,045		1,973
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
MATERIALS - continued
Paper & Forest Products - continued
Tembec Industries, Inc.: - continued
8.5% 2/1/11	$ 2,635		$ 2,635
yankee 8.625% 6/30/09	1,720		1,720
			58,784
TOTAL MATERIALS			192,368
TELECOMMUNICATION SERVICES - 1.4%
Diversified Telecommunication Services - 1.0%
AT&T Broadband Corp. 8.375% 3/15/13	4,000		4,967
AT&T Corp. 8.75% 11/15/31	2,720		3,208
BellSouth Corp. 6% 10/15/11	3,480		3,860
Centennial Cellular Operating Co. LLC/Centennial Finance Corp. 10.75% 12/15/08	5,089		5,191
Cincinnati Bell, Inc. 8.375% 1/15/14	4,015		3,895
Citizens Communications Co.:
7.625% 8/15/08	1,355		1,423
9% 8/15/31	675		712
9.25% 5/15/11	680		751
Empresa Brasil de Telecomm SA 11% 12/15/08 (e)	5,495		5,948
Eschelon Operating Co. 8.375% 3/15/10 (e)	4,290		3,647
France Telecom SA:
8.75% 3/1/11	3,495		4,268
9.5% 3/1/31	3,000		4,055
GCI, Inc. 7.25% 2/15/14 (e)	7,205		7,025
Level 3 Communications, Inc.:
9.125% 5/1/08	245		197
10.5% 12/1/08	4,240		3,477
MCI Communications Corp.:
6.5% 4/15/10 (c)	3,680		2,926
6.95% 8/15/06 (c)	305		242
7.75% 3/15/24 (c)	2,065		1,637
7.75% 3/23/25 (c)	3,520		2,785
8.25% 1/20/23 (c)	950		746
Primus Telecom Holding, Inc. 8% 1/15/14 (e)	4,660		4,462
Qwest Communications International, Inc. 7.25% 2/15/11 (e)	2,510		2,385
Qwest Corp. 9.125% 3/15/12 (e)	5,675		6,441
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
TELECOMMUNICATION SERVICES - continued
Diversified Telecommunication Services - continued
Qwest Services Corp.:
13.5% 12/15/10 (e)	$ 3,880		$ 4,501
14% 12/15/14 (e)	4,632		5,558
SBC Communications, Inc. 5.875% 2/1/12	4,200		4,589
Telefonica Europe BV 7.75% 9/15/10	3,500		4,227
Telenet Group Holding NV 0% 6/15/14 (d)(e)	5,550		3,386
Telewest Communications PLC yankee 11.25% 11/1/08 (c)	635		397
TELUS Corp. yankee 8% 6/1/11	9,500		11,444
Triton PCS, Inc.:
8.75% 11/15/11	1,445		1,362
9.375% 2/1/11	2,655		2,555
U.S. West Communications:
6.875% 9/15/33	2,370		2,103
7.2% 11/10/26	1,485		1,366
7.5% 6/15/23	2,300		2,105
			117,841
Wireless Telecommunication Services - 0.4%
America Movil SA de CV:
4.125% 3/1/09 (e)	2,315		2,320
5.5% 3/1/14 (e)	2,090		2,084
American Cellular Corp. 10% 8/1/11	3,100		2,976
Crown Castle International Corp. 7.5% 12/1/13	2,160		2,117
DirecTV Holdings LLC/DirecTV Financing, Inc. 8.375% 3/15/13	3,505		4,013
Dobson Communications Corp. 8.875% 10/1/13	4,395		3,428
Millicom International Cellular SA 10% 12/1/13 (e)	4,390		4,588
Nextel Communications, Inc.:
6.875% 10/31/13	4,165		4,436
7.375% 8/1/15	1,495		1,622
Rogers Wireless, Inc.:
6.375% 3/1/14 (e)	5,210		5,262
9.625% 5/1/11	9,750		11,919
Western Wireless Corp. 9.25% 7/15/13	3,320		3,411
			48,176
TOTAL TELECOMMUNICATION SERVICES			166,017
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
UTILITIES - 1.6%
Electric Utilities - 0.8%
AES Gener SA 7.5% 3/25/14 (e)	$ 865		$ 882
CMS Energy Corp.:
7.5% 1/15/09	1,580		1,625
7.75% 8/1/10 (e)	5,105		5,309
8.5% 4/15/11	3,995		4,290
8.9% 7/15/08	855		920
9.875% 10/15/07	2,565		2,825
Dominion Resources, Inc. 6.25% 6/30/12	3,830		4,234
Duke Capital Corp.:
4.37% 3/1/09	2,330		2,356
6.75% 2/15/32	11,025		11,480
Exelon Corp. 6.75% 5/1/11	3,175		3,631
Exelon Generation Co. LLC 5.35% 1/15/14 (e)	4,350		4,484
FirstEnergy Corp. 7.375% 11/15/31	12,030		13,410
Illinois Power Co. 7.5% 6/15/09	5,330		6,023
MidAmerican Energy Holdings, Inc.:
4.625% 10/1/07	2,645		2,783
5.875% 10/1/12	2,885		3,118
Monongahela Power Co. 5% 10/1/06	3,250		3,315
Pacific Gas & Electric Co.:
3.6% 3/1/09	690		693
4.8% 3/1/14	1,085		1,090
6.05% 3/1/34	3,925		3,970
Progress Energy, Inc.:
6.85% 4/15/12	2,910		3,329
7.1% 3/1/11	1,710		1,978
PSI Energy, Inc. 6.65% 6/15/06	1,385		1,518
Public Service Co. of Colorado 7.875% 10/1/12	3,815		4,758
TECO Energy, Inc.:
7% 5/1/12	1,835		1,927
7.2% 5/1/11	1,700		1,815
			91,763
Gas Utilities - 0.2%
El Paso Energy Corp.:
6.75% 5/15/09	1,470		1,297
6.95% 12/15/07	1,760		1,606
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
UTILITIES - continued
Gas Utilities - continued
Ras Laffan Liquid Natural Gas Co. Ltd. yankee 8.294% 3/15/14 (e)	$ 5,560		$ 6,672
Sonat, Inc.:
6.625% 2/1/08	4,090		3,579
6.75% 10/1/07	4,830		4,317
7.625% 7/15/11	4,280		3,708
			21,179
Multi-Utilities & Unregulated Power - 0.6%
AES Corp.:
7.75% 3/1/14	6,530		6,489
8.375% 8/15/07	2,235		2,269
8.5% 11/1/07	3,970		4,059
8.75% 6/15/08	3,298		3,463
8.75% 5/15/13 (e)	3,650		4,001
8.875% 2/15/11	4,068		4,348
9% 5/15/15 (e)	1,650		1,819
9.375% 9/15/10	470		512
9.5% 6/1/09	691		751
Constellation Energy Group, Inc. 6.35% 4/1/07	6,020		6,636
NRG Energy, Inc. 8% 12/15/13 (e)	4,795		4,951
Williams Companies, Inc.:
7.125% 9/1/11	10,765		11,303
7.5% 1/15/31	2,950		2,847
7.875% 9/1/21	3,580		3,629
8.125% 3/15/12	4,540		5,039
8.625% 6/1/10	3,930		4,323
			66,439
TOTAL UTILITIES			179,381
TOTAL NONCONVERTIBLE BONDS			1,604,454
TOTAL CORPORATE BONDS (Cost $1,530,861)		1,644,036
U.S. Government and Government Agency Obligations - 4.3%
	Principal Amount (000s)		Value (Note 1) (000s)
U.S. Government Agency Obligations - 1.3%
Fannie Mae:
4% 9/2/08	$ 6,025		$ 6,253
5.25% 8/1/12	12,314		13,076
6.25% 2/1/11	35,975		40,932
Financing Corp. - coupon STRIPS:
0% 8/8/05	5,482		5,368
0% 11/30/05	1,666		1,618
Freddie Mac:
5.25% 11/5/12	41,275		42,790
5.875% 3/21/11	23,980		26,720
U.S. Department of Housing and Urban Development Government guaranteed participation certificates Series 1996-A, 7.57% 8/1/13	10,090		10,828
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS			147,585
U.S. Treasury Inflation Protected Obligations - 0.2%
U.S. Treasury Inflation-Indexed Bonds 3.625% 4/15/28	17,173		22,631
U.S. Treasury Obligations - 2.8%
U.S. Treasury Bills, yield at date of purchase 0.87% to 0.94% 4/22/04 to 6/10/04 (h)	27,700		27,658
U.S. Treasury Bonds 7.875% 2/15/21	108,250		149,719
U.S. Treasury Notes:
3.25% 8/15/07 (f)	73,000		75,586
6.5% 2/15/10	57,430		68,086
TOTAL U.S. TREASURY OBLIGATIONS			321,049
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $479,591)		491,265
U.S. Government Agency - Mortgage Securities - 5.6%

Fannie Mae - 4.8%
4% 8/1/18 to 4/1/19 (f)	48,997		48,699
4% 3/18/19 (f)	26,000		25,813
5% 2/1/18 to 7/1/18	68,181		70,160
5% 4/1/34 (f)	24,000		24,113
5.5% 2/1/11 to 2/1/29	52,147		54,295
5.5% 4/20/19 to 4/1/34 (f)	68,531		70,666
6% 4/1/09 to 4/1/33	24,493		25,698
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Fannie Mae - continued
6% 4/1/34 (f)	$ 18,041		$ 18,768
6.5% 6/1/08 to 1/1/33	104,698		110,396
6.5% 4/1/19 to 4/1/34 (f)	40,764		43,012
7% 11/1/05 to 2/1/33 (g)	44,763		47,648
7% 4/1/19 (f)	3,318		3,550
7.5% 2/1/22 to 11/1/31	12,453		13,356
8% 6/1/29	6		6
TOTAL FANNIE MAE			556,180
Freddie Mac - 0.1%
5% 11/1/33	485		488
6% 10/1/23 to 9/1/25	2,933		3,064
7.5% 11/1/16 to 6/1/32	5,909		6,370
8% 10/1/27	36		40
8.5% 2/1/19 to 8/1/22	25		28
TOTAL FREDDIE MAC			9,990
Government National Mortgage Association - 0.7%
6% 10/15/08 to 12/15/10	5,423		5,756
6.5% 12/15/07 to 8/15/27	26,824		28,501
7% 6/15/24 to 7/15/32	21,533		22,952
7% 4/1/34 (f)	11,150		11,875
7.5% 3/15/22 to 8/15/28	6,670		7,200
8% 4/15/24 to 12/15/25	484		531
8.5% 3/15/05 to 11/15/31	1,382		1,512
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION			78,327
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES (Cost $629,375)		644,497
Asset-Backed Securities - 1.6%

Accredited Mortgage Loan Trust Series 2003-2 Class A1, 4.23% 10/25/33	4,446		4,501
AmeriCredit Automobile Receivables Trust:
Series 2003-AM Class A4B, 1.57% 11/6/09 (i)	2,895		2,917
Series 2003-BX:
Class A4A, 2.72% 1/6/10	2,520		2,556
Class A4B, 1.48% 1/6/10 (i)	1,870		1,885
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Ameriquest Mortgage Securities, Inc.:
Series 2002-AR1 Class M2, 2.39% 9/25/32 (i)	$ 800		$ 806
Series 2003-3 Class M1, 1.89% 3/25/33 (i)	3,445		3,467
Amortizing Residential Collateral Trust:
Series 2002-BC3N Class B2, 7% 6/25/32 (e)	184		183
Series 2002-BC6 Class A2, 1.44% 8/25/32 (i)	4,456		4,465
Series 2002-BC7 Class M1, 1.89% 10/25/32 (i)	14,953		15,065
Argent Securities, Inc. Series 2003-W3 Class M2, 2.89% 9/25/33 (i)	2,000		2,056
Asset Backed Securities Corp. Home Equity Loan Trust Series 2003-HE2:
Class A2, 1.47% 4/15/33 (i)	4,817		4,835
Class M1, 1.99% 4/15/33 (i)	4,055		4,122
Associates Automobile Receivables Trust Series 2000-1 Class B, 7.83% 8/15/07	5,702		5,829
Bayview Financial Asset Trust Series 2000-F Class A, 1.59% 9/28/43 (i)	10,634		10,680
Capital One Auto Finance Trust Series 2003-A Class A4B, 1.37% 1/15/10 (i)	5,485		5,521
Capital One Master Trust:
Series 2002-3A Class B, 4.55% 2/15/08	16,000		16,377
Series 2002-4 Class A, 4.9% 3/15/10	6,460		6,936
Capital One Multi-Asset Execution Trust:
Series 2002-B1 Class B1, 1.77% 7/15/08 (i)	5,780		5,816
Series 2003-2B Class B2, 3.5% 2/17/09	3,435		3,526
Series 2003-B1 Class B1, 2.26% 2/17/09 (i)	6,530		6,652
CDC Mortgage Capital Trust Series 2003-HE2 Class M2, 2.99% 10/25/33 (i)	1,495		1,543
Chase Credit Card Master Trust Series 2003-6 Class B, 1.44% 2/15/11 (i)	4,305		4,338
Countrywide Home Loans, Inc. Series 2002-6 Class AV1, 1.52% 5/25/33 (i)	7,968		7,989
First USA Secured Note Trust Series 2001-3 Class C, 2.14% 11/19/08 (e)(i)	5,230		5,291
Ford Credit Auto Owner Trust Series 2001-B Class B, 5.71% 9/15/05	3,415		3,457
GSAMP NIMS Trust Series 2002-HE2N Class NOTE, 8.25% 10/20/32 (e)	541		542
Home Equity Asset Trust Series 2003-2:
Class A2, 1.47% 8/25/33 (i)	915		918
Class M1, 1.97% 8/25/33 (i)	1,650		1,676
Home Equity Asset Trust NIMS Trust:
Series 2002-3N Class A, 8% 3/25/33 (e)	79		79
Series 2003-2N Class A, 8% 9/27/33 (e)	936		936
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Household Private Label Credit Card Master Note Trust I:
Series 2002-1 Class A, 5.5% 1/18/11	$ 4,100		$ 4,445
Series 2002-3 Class B, 2.34% 9/15/09 (i)	3,335		3,382
Long Beach Mortgage Loan Trust Series 2003-3:
Class M1, 1.84% 7/25/33 (i)	4,425		4,474
Class M2, 2.94% 7/25/33 (i)	2,265		2,331
MBNA Credit Card Master Note Trust:
Series 2001-B1 Class B1, 1.465% 10/15/08 (i)	2,750		2,758
Series 2001-B2 Class B2, 1.45% 1/15/09 (i)	2,750		2,763
Series 2002-B2 Class B2, 1.47% 10/15/09 (i)	2,750		2,768
Morgan Stanley ABS Capital I, Inc.:
Series 2002-HE3 Class M1, 2.19% 12/27/32 (i)	825		841
Series 2002-NC6N Class NOTE, 9.5% 9/25/32 (e)	98		99
Series 2003-HE1 Class M2, 2.99% 5/25/33 (i)	2,610		2,650
Series 2003-NC6 Class M2, 3.04% 6/27/33 (i)	7,295		7,459
Morgan Stanley Dean Witter Capital I Trust:
Series 2002-NC3 Class M1, 1.81% 8/25/32 (i)	670		677
Series 2002-NC5N Class NOTE, 9.5% 9/25/32 (e)	472		473
Morgan Stanley Dean Witter Capital I, Inc. Series 2003-NC2N Class NOTE, 9.5% 12/25/32 (e)	1,623		1,630
New Century Home Equity Loan Trust Series 2003-2 Class A2, 1.52% 1/25/33 (i)	4,036		4,045
Residential Asset Mortgage Products, Inc. Series 2003-RZ2 Class A1, 3.6% 4/25/33	4,065		4,054
Salomon Brothers Mortgage Securities VII, Inc. Series 2003-UP1 Class A, 3.45% 4/25/32 (e)	3,130		3,133
Sears Credit Account Master Trust II Series 2000-2 Class A, 6.75% 9/16/09	2,500		2,678
Structured Asset Securities Corp. Series 2004-GEL1 Class A, 1.45% 2/25/34 (i)	957		957
TOTAL ASSET-BACKED SECURITIES (Cost $183,993)		186,581
Collateralized Mortgage Obligations - 0.5%

Private Sponsor - 0.2%
CS First Boston Mortgage Securities Corp. Series 2003-TFLA Class F, 1.9433% 4/15/13 (e)(i)	1,775		1,751
Master Alternative Loan Trust Series 2004-3 Class 3A1, 6% 4/25/34	850		882
Merrill Lynch Mortgage Investors, Inc.:
floater Series 2003-A Class 2A1, 1.48% 3/25/28 (i)	7,662		7,685
Series 2003-E Class XA1, 1% 10/25/28 (i)(k)	35,286		509
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Private Sponsor - continued
Merrill Lynch Mortgage Investors, Inc.: - continued
Series 2003-G Class XA1, 1% 1/25/29 (k)	$ 31,104		$ 530
Series 2003-H Class XA1, 1% 1/25/29 (e)(k)	27,456		472
Residential Asset Mortgage Products, Inc. sequential pay Series 2003-SL1 Class A31, 7.125% 4/25/31	5,187		5,446
Residential Finance LP/Residential Finance Development Corp. floater Series 2003-CB1:
Class B3, 2.5425% 6/10/35 (e)(i)	1,467		1,490
Class B4, 2.7425% 6/10/35 (e)(i)	1,314		1,335
Class B5, 3.3425% 6/10/35 (e)(i)	894		911
Class B6, 3.8425% 6/10/35 (e)(i)	533		543
Sequoia Mortgage Funding Trust Series 2003-A Class AX1, 0.8% 10/21/08 (e)(k)	125,670		1,419
Washington Mutual Mortgage Securities Corp. sequential pay Series 2003-MS9 Class 2A1, 7.5% 12/25/33	1,085		1,135
TOTAL PRIVATE SPONSOR			24,108
U.S. Government Agency - 0.3%
Fannie Mae planned amortization class:
Series 1999-54 Class PH, 6.5% 11/18/29	8,575		9,015
Series 1999-57 Class PH, 6.5% 12/25/29	6,978		7,428
Fannie Mae guaranteed REMIC pass thru certificates planned amortization class Series 2002-64 Class PC, 5.5% 12/25/26	4,225		4,325
Freddie Mac Multi-class participation certificates guaranteed:
planned amortization class Series 2435 Class EL, 6% 9/15/27	7,618		7,670
sequential pay Series 2303 Class VT, 6% 2/15/12	1,803		1,811
Series 2707:
Class ZA, 4.5% 11/15/18	1,220		1,216
Class ZE, 5% 11/15/18	911		912
Ginnie Mae guaranteed Multi-family pass thru securities sequential pay Series 2002-35 Class C, 5.8664% 10/16/23 (i)	655		722
TOTAL U.S. GOVERNMENT AGENCY			33,099
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $54,546)		57,207
Commercial Mortgage Securities - 2.4%
	Principal Amount (000s)		Value (Note 1) (000s)
Asset Securitization Corp.:
sequential pay Series 1995-MD4 Class A1, 7.1% 8/13/29	$ 1,613		$ 1,727
Series 1997-D5 Class PS1, 1.315% 2/14/43 (i)(k)	53,793		3,452
Atherton Franchise Loan Funding LLP Series 1998-A Class E, 8.25% 5/15/20 (c)(e)	2,047		92
Banc of America Commercial Mortgage, Inc. Series 2003-1 Class XP1, 1.475% 9/11/36 (e)(i)(k)	122,640		3,564
Banc of America Large Loan, Inc.:
floater Series 2003-BBA2:
Class C, 1.56% 11/15/15 (e)(i)	460		461
Class D, 1.64% 11/15/15 (e)(i)	715		717
Series 2003-BBA2:
Class A3, 1.41% 11/15/15 (e)(i)	2,240		2,242
Class F, 1.99% 11/15/15 (e)(i)	510		513
Class H, 2.49% 11/15/15 (e)(i)	460		463
Class J, 3.04% 11/15/15 (e)(i)	475		478
Class K, 3.69% 11/15/15 (e)(i)	430		430
Bayview Commercial Asset Trust floater Series 2003-1 Class A, 1.67% 8/25/33 (e)(i)	4,890		4,921
Berkeley Federal Bank & Trust FSB Series 1994-1 Class B, 0.289% 8/1/24 (e)(i)	741		630
CBM Funding Corp. sequential pay Series 1996-1:
Class A3PI, 7.08% 11/1/07	5,853		6,348
Class B, 7.48% 2/1/08	9,885		11,035
Chase Commercial Mortgage Securities Corp.:
Series 1999-2:
Class E, 7.734% 1/15/32	1,383		1,621
Class F, 7.734% 1/15/32	750		862
Series 2001-245 Class A2, 6.0658% 2/12/16 (e)(i)	1,695		1,898
COMM floater:
Series 2001-FL5A Class A2, 1.64% 11/15/13 (e)(i)	1,177		1,177
Series 2002-FL7 Class A2, 1.44% 11/15/14 (e)(i)	4,140		4,139
Crest Dartmouth Street 2003 1 Ltd./Crest Dartmouth Street 2003 1 Corp. Series 2003-1A Class C, 6.667% 6/28/38 (e)	3,995		3,998
CS First Boston Mortgage Securities Corp.:
floater Series 2001-TFLA Class B, 1.99% 12/15/11 (e)(i)	8,010		8,003
Series 1997-C2 Class D, 7.27% 1/17/35	11,870		13,557
Series 1998-C1 Class D, 7.17% 5/17/40	1,825		2,049
Series 2003-C3 Class ASP, 1.9632% 5/15/38 (e)(i)(k)	58,530		4,660
Series 2004-C1 Class ASP, 1.2154% 1/15/37 (e)(i)(k)	35,585		1,701
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Deutsche Mortgage & Asset Receiving Corp. sequential pay Series 1998-C1 Class D, 7.231% 6/15/31	$ 12,905		$ 13,772
DLJ Commercial Mortgage Corp. sequential pay Series 1999-CG2 Class A1A, 6.88% 6/10/32	7,705		8,375
Equitable Life Assurance Society of the United States Series 174:
Class B1, 7.33% 5/15/06 (e)	10,400		11,447
Class C1, 7.52% 5/15/06 (e)	8,000		8,823
Class D1, 7.77% 5/15/06 (e)	6,800		7,472
First Union National Bank-Chase Manhattan Bank Commercial Mortgage Trust Series 1999-C2 Class C 6.944% 6/15/31	5,500		6,313
FMAC Loan Receivables Trust weighted average coupon Series 1997-A Class E, 0% 4/15/19 (c)(e)(i)	1,043		0
GAFCO Franchisee Loan Trust Series 1998-1 Class D, 13.5% 6/1/16 (e)(i)	4,600		3,143
Ginnie Mae guaranteed Multi-family pass thru securities:
sequential pay Series 2002-26 Class C, 6.0097% 2/16/24 (i)	4,700		5,206
Series 2003-87 Class C, 5.3155% 8/16/32 (i)	3,500		3,741
Ginnie Mae guaranteed REMIC pass thru securities:
sequential pay Series 2003-47 Class C, 4.227% 10/16/27	5,575		5,664
Series 2003-47 Class XA, 0.0213% 6/16/43 (i)(k)	17,499		872
Greenwich Capital Commercial Funding Corp.:
Series 2002-C1 Class SWDB 5.857% 11/11/19 (e)	5,715		5,888
Series 2003-C1 Class XP, 2.2432% 7/5/35 (e)(i)(k)	29,660		2,719
GS Mortgage Securities Corp. II:
sequential pay:
Series 1998-GLII Class A2, 6.562% 4/13/31	4,250		4,765
Series 2001-LIBA Class A2, 6.615% 2/14/16 (e)	1,660		1,879
Series 1998-GLII Class E, 6.9702% 4/13/31 (i)	3,323		3,435
J.P. Morgan Commercial Mortgage Finance Corp. sequential pay:
Series 1998-C6 Class A3, 6.613% 1/15/30	8,950		10,027
Series 1999-C7 Class A2, 6.507% 10/15/35	4,655		5,269
KSL Resorts Series 2003-1A:
Class A, 1.64% 5/15/13 (e)(i)	1,600		1,600
Class B, 1.79% 5/15/13 (e)(i)	1,000		1,000
Class K, 3.74% 5/15/13 (e)(i)	1,875		1,879
Class L, 3.94% 5/15/13 (e)(i)	1,875		1,879
LB Commercial Conduit Mortgage Trust Series 1999-C1 Class B, 6.93% 6/15/31	3,600		4,164
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (Note 1) (000s)
LB-UBS Commercial Mortgage Trust sequential pay Series 2001-C3 Class A1, 6.058% 6/15/20	$ 13,882		$ 15,207
Leafs CMBS I Ltd./Leafs CMBS I Corp. Series 2002-1A Class C, 4.13% 11/20/37 (e)	4,840		4,515
LTC Commercial Mortgage pass thru certificates sequential pay Series 1998-1 Class A, 6.029% 5/28/30 (e)	4,261		4,283
Morgan Stanley Capital I, Inc. sequential pay Series 1999-WF1 Class A2, 6.21% 11/15/31	1,275		1,429
Morgan Stanley Dean Witter Capital I Trust Series 2003-HQ2 Class X2, 1.5792% 3/12/35 (e)(i)(k)	31,393		2,290
Penn Mutual Life Insurance Co./Penn Insurance & Annuity Co. Series 1996-PML:
Class K, 7.9% 11/15/26 (e)	750		854
Class L, 7.9% 11/15/26 (e)	600		697
Salomon Brothers Mortgage Securities VII, Inc. sequential pay Series 2000-C3 Class A2, 6.592% 12/18/33	4,220		4,842
Structured Asset Securities Corp. Series 1996-CFL Class H, 7.75% 2/25/28 (e)	1,000		1,125
Thirteen Affiliates of General Growth Properties, Inc.:
sequential pay Series 1 Class A2, 6.602% 11/15/07 (e)	11,530		12,834
Series 1:
Class D2, 6.992% 11/15/07 (e)	11,380		12,778
Class E2, 7.224% 11/15/07 (e)	6,760		7,547
Trizechahn Office Properties Trust Series 2001-TZHA:
Class C4, 6.893% 5/15/16 (e)	200		227
Class E3, 7.253% 3/15/13 (e)	4,835		5,156
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $262,028)		273,854
Foreign Government and Government Agency Obligations - 0.2%

Chilean Republic:
5.5% 1/15/13	7,735		8,174
7.125% 1/11/12	4,410		5,149
State of Israel 4.625% 6/15/13	4,440		4,335
United Mexican States:
7.5% 4/8/33	1,900		2,071
8% 9/24/22	5,900		6,815
TOTAL FOREIGN GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $24,204)		26,544
Floating Rate Loans - 0.2%
	Principal Amount (000s)		Value (Note 1) (000s)
CONSUMER DISCRETIONARY - 0.1%
Hotels, Restaurants & Leisure - 0.1%
Hilton Head Communications LP Tranche B term loan 5.25% 3/31/08 (i)	$ 4,250		$ 4,016
Wyndham International, Inc. term loan:
5.875% 6/30/06 (i)	7,784		7,473
6.875% 4/1/06 (i)	1,215		1,179
			12,668
Media - 0.0%
Century Cable Holdings LLC Tranche B term loan 6% 12/31/09 (f)(i)	2,200		2,085
TOTAL CONSUMER DISCRETIONARY			14,753
UTILITIES - 0.1%
Electric Utilities - 0.1%
Allegheny Energy Supply Co. LLC Tranche C term loan 6.25% 6/8/11 (i)	3,700		3,714
TOTAL FLOATING RATE LOANS (Cost $17,796)		18,467

Fixed-Income Funds - 0.4%
	Shares
Fidelity Ultra-Short Central Fund (j) (Cost $44,200)	444,005		44,250
Money Market Funds - 20.1%

Fidelity Cash Central Fund, 1.08% (b)	1,868,959,919		1,868,960
Fidelity Money Market Central Fund, 1.15% (b)	425,013,442		425,013
Fidelity Securities Lending Cash Central Fund, 1.08% (b)	5,406,271		5,406
TOTAL MONEY MARKET FUNDS (Cost $2,299,379)		2,299,379
TOTAL INVESTMENT PORTFOLIO - 101.8% (Cost $11,032,905)			11,640,276
NET OTHER ASSETS - (1.8)%			(210,841)
NET ASSETS - 100%		$ 11,429,435

Futures Contracts
	Expiration Date	Underlying Face Amount at Value (000s)	Unrealized Appreciation/ (Depreciation) (000s)
Purchased
Equity Index Contracts
1,608 S&P 500 Index Contracts	June 2004	$ 452,210	$ 4,619

The face value of futures purchased as a percentage of net assets - 4%

Swap Agreements
		Notional Amount (000s)
Credit Default Swap
Receive quarterly notional amount multiplied by .35% and pay Goldman Sachs upon default event of Devon Energy Corp., par value of the notional amount of Devon Energy Corp. 7.95% 4/15/32	June 2006	$ 1,600	0
Receive quarterly notional amount multiplied by .38% and pay Merrill Lynch, Inc. upon default event of EnCana Corp., par value of the notional amount of EnCana Corp. 4.75% 10/15/13	March 2009	9,500	(80)
Receive quarterly notional amount multiplied by .41% and pay Merrill Lynch, Inc. upon default event of Talisman Energy, Inc., par value of the notional amount of Talisman Energy, Inc. 7.25% 10/15/27	March 2009	2,000	(14)
Receive quarterly notional amount multiplied by .53% and pay Deutsche Bank upon default event of SBC Communications, Inc., par value of the notional amount of SBC Communications, Inc. 6.25% 3/15/11	March 2009	2,400	1
Receive quarterly notional amount multiplied by .53% and pay Lehman Brothers, Inc., upon default event of SBC Communications, Inc., par value of the notional amount of SBC Communications, Inc. 6.25% 3/15/11	March 2009	1,800	1
Receive quarterly notional amount multiplied by .565% and pay Morgan Stanley, Inc. upon default event of Walt Disney Co., par value of the notional amount of Walt Disney Co. 6.375% 3/1/12	March 2009	6,000	(3)
Swap Agreements - continued
	Expiration Date	Notional Amount (000s)	Unrealized Appreciation/ (Depreciation) (000s)
Credit Default Swap - continued
Receive quarterly notional amount multiplied by .59% and pay Merrill Lynch, Inc. upon default event of Raytheon Co., par value of the notional amount of Raytheon Co. 6.55% 3/15/10	March 2009	$ 9,500	$ (23)
Receive quarterly notional amount multiplied by 1.38% and pay Merrill Lynch, Inc. upon default event of Bombardier, Inc., par value of the notional amount of Bombardier, Inc. 6.75% 5/1/12	March 2009	4,650	(49)
Receive quarterly notional amount multiplied by 1.4% and pay Merrill Lynch, Inc. upon default event of Bombardier, Inc., par value of the notional amount of Bombardier, Inc. 6.75% 5/1/12	March 2009	1,600	(17)
TOTAL CREDIT DEFAULT SWAP		39,050	(184)
Interest Rate Swap
Receive quarterly a fixed rate equal to 2.34034% and pay quarterly a floating rate based on 3-month LIBOR with JPMorgan Chase, Inc.	March 2007	20,000	46
Receive quarterly a fixed rate equal to 2.39024% and pay quarterly a floating rate based on 3-month LIBOR with Lehman Brothers, Inc.	July 2006	4,000	43
Receive quarterly a fixed rate equal to 2.5509% and pay quarterly a floating rate based on 3-month LIBOR with JPMorgan Chase, Inc.	Jan. 2007	20,000	192
Receive quarterly a fixed rate equal to 2.745% and pay quarterly a floating rate based on 3-month LIBOR with Lehman Brothers, Inc.	March 2008	33,000	(63)
Receive quarterly a fixed rate equal to 2.819% and pay quarterly a floating rate based on 3-month LIBOR with Lehman Brothers, Inc.	August 2007	18,500	119
Receive quarterly a fixed rate equal to 2.85% and pay quarterly a floating rate based on 3-month LIBOR with Morgan Stanley, Inc.	July 2007	10,000	133
TOTAL INTEREST RATE SWAP		105,500	470
Swap Agreements - continued
	Expiration Date	Notional Amount (000s)	Unrealized Appreciation/ (Depreciation) (000s)
Total Return Swap
Receive monthly a return equal to Lehman Brothers CMBS AAA 8.5+ and pay monthly a floating rate based on 1-month LIBOR minus 65 basis points with Lehman Brothers, Inc.	Oct. 2004	$ 9,500	$ 156
Receive monthly a return equal to Lehman Brothers CMBS Erisa Eligible and pay monthly a floating rate based on 1-month LIBOR minus 50 basis points with Lehman Brothers, Inc.	August 2004	3,750	42
Receive monthly a return equal to Lehman Brothers CMBS Erisa Eligible and pay monthly a floating rate based on 1-month LIBOR minus 50 basis points with Lehman Brothers, Inc.	Sept. 2004	8,180	20
Receive quarterly a return equal to Banc of America Securities LLC AAA 10Yr Commercial Mortgage-Backed Securities Daily Index and pay quarterly a floating rate based on 3-month LIBOR minus 80 basis points with Bank of America	April 2004	10,000	194
Receive quarterly a return equal to Banc of America Securities LLC AAA 10Yr Commercial Mortgage-Backed Securities Daily Index and pay quarterly a floating rate based on 3-month LIBOR minus 75 basis points with Bank of America	May 2004	10,000	188
TOTAL TOTAL RETURN SWAP		41,430	600
		$ 185,980	$ 886

Legend

(a) Non-income producing

(d) Debt obligation initially issued in zero coupon form which converts to coupon form at a specified rate and date. The rate shown is the rate at period end.

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

(g) A portion of the security is subject to a forward commitment to sell.

(h) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $27,658,000.

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

(j) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request.

(k) Security represents right to receive monthly interest payments on an underlying pool of mortgages. Principal shown is the par amount of the mortgage pool.

(l) 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 $9,922,000 or 0.1% of net assets.

Additional information on each holding is as follows:

Security	Acquisition Date	Acquisition Cost (000s)
Arena Brands Holding Corp. Class B	6/18/97	$ 5,269
Micron Technology, Inc. 6.5% 9/30/05	7/15/99 - 8/8/02	$ 6,618

Other Information

The composition of credit quality ratings as a percentage of net assets is as follows (ratings are unaudited):

U.S. Government and U.S. Government Agency Obligations	10.3%
AAA,AA,A	4.9%
BBB	3.8%
BB	3.1%
B	5.4%
CCC,CC,C	1.5%
Not Rated	0.3%
Equities	56.1%
Short-Term Investments and Net Other Assets	14.6%
	100.0%

We have used ratings from Moody's Investors Services, Inc. Where Moody's® ratings are not available, we have used
S&P® ratings. Percentages are adjusted for the effect of futures contracts, if applicable.

The fund invested in loans and loan participations, trade claims or other receivables. At period end the value of these investments amounted to $18,467 or 0.2% of net assets.

Purchases and sales of securities, other than short-term securities, aggregated $4,184,838,000 and $4,677,708,000, respectively, of which long-term U.S. government and government agency obligations aggregated $1,503,222,000 and $1,992,604,000, respectively.

The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $84,000 for the period.

The fund participated in the bank borrowing program. The average daily loan balance during the period for which the loan was outstanding amounted to $24,920,000. The weighted average interest rate was 1.48%.

Income Tax Information

At September 30, 2003, the fund had a capital loss carryforward of approximately $159,024,000 of which $59,714,000 and $99,310,000 will expire on September 30, 2009 and 2010, respectively.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

Amounts in thousands (except per-share amount)	March 31, 2004

Assets
Investment in securities, at value (including securities loaned of $5,203) (cost $11,032,905) - See accompanying schedule		$ 11,640,276
Commitment to sell securities on a delayed delivery basis	$ (11,833)
Receivable for securities sold on a delayed delivery basis	11,838	5
Receivable for investments sold, regular delivery		146,975
Cash		259
Foreign currency held at value (cost $845)		848
Receivable for fund shares sold		5,699
Dividends receivable		7,474
Interest receivable		41,828
Unrealized gain on swap agreements		886
Prepaid expenses		45
Other affiliated receivables		54
Other receivables		953
Total assets		11,845,302

Liabilities
Payable for investments purchased Regular delivery	$ 79,727
Delayed delivery	276,189
Payable for fund shares redeemed	21,743
Accrued management fee	4,999
Notes payable	24,920
Payable for daily variation on futures contracts	482
Other affiliated payables	2,237
Other payables and accrued expenses	164
Collateral on securities loaned, at value	5,406
Total liabilities		415,867

Net Assets		$ 11,429,435
Net Assets consist of:
Paid in capital		$ 10,867,954
Undistributed net investment income		6,484
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(58,033)
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		613,030
Net Assets, for 717,373 shares outstanding		$ 11,429,435
Net Asset Value, offering price and redemption price per share ($11,429,435 ÷ 717,373 shares)		$ 15.93

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Statement of Operations

Amounts in thousands	Six months ended March 31, 2004

Investment Income
Dividends		$ 45,474
Interest		111,914
Security lending		17
Total income		157,405

Expenses
Management fee	$ 29,636
Transfer agent fees	10,740
Accounting and security lending fees	642
Non-interested trustees' compensation	33
Appreciation in deferred trustee compensation account	20
Custodian fees and expenses	184
Registration fees	43
Audit	83
Legal	30
Interest	1
Miscellaneous	67
Total expenses before reductions	41,479
Expense reductions	(470)	41,009
Net investment income (loss)		116,396
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities	84,217
Foreign currency transactions	(348)
Futures contracts	40,384
Swap agreements	2,448
Total net realized gain (loss)		126,701
Change in net unrealized appreciation (depreciation) on: Investment securities	585,770
Assets and liabilities in foreign currencies	12
Futures contracts	13,240
Swap agreements	946
Delayed delivery commitments	5
Total change in net unrealized appreciation (depreciation)		599,973
Net gain (loss)		726,674
Net increase (decrease) in net assets resulting from operations		$ 843,070

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Statement of Changes in Net Assets

Amounts in thousands	Six months ended March 31, 2004	Year ended September 30, 2003
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 116,396	$ 290,597
Net realized gain (loss)	126,701	246,887
Change in net unrealized appreciation (depreciation)	599,973	1,166,409
Net increase (decrease) in net assets resulting from operations	843,070	1,703,893
Distributions to shareholders from net investment income	(136,121)	(295,818)
Share transactions Net proceeds from sales of shares	665,606	1,175,842
Reinvestment of distributions	132,218	287,120
Cost of shares redeemed	(887,865)	(1,652,666)
Net increase (decrease) in net assets resulting from share transactions	(90,041)	(189,704)
Total increase (decrease) in net assets	616,908	1,218,371

Net Assets
Beginning of period	10,812,527	9,594,156
End of period (including undistributed net investment income of $6,484 and undistributed net investment income of $26,209, respectively)	$ 11,429,435	$ 10,812,527
Other Information Shares
Sold	42,387	82,291
Issued in reinvestment of distributions	8,347	20,163
Redeemed	(56,595)	(116,816)
Net increase (decrease)	(5,861)	(14,362)

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Highlights

	Six months ended March 31, 2004	Years ended September 30,
	(Unaudited)	2003	2002	2001	2000	1999
Selected Per-Share Data
Net asset value, beginning of period	$ 14.95	$ 13.01	$ 14.72	$ 19.11	$ 17.28	$ 18.24
Income from Investment Operations
Net investment income (loss)^D	.16	.40	.49^F	.59	.61	.54
Net realized and unrealized gain (loss)	1.01	1.95	(1.62)^F	(3.03)	2.53	2.23
Total from investment operations	1.17	2.35	(1.13)	(2.44)	3.14	2.77
Distributions from net investment income	(.19)	(.41)	(.58)	(.61)	(.58)	(.56)
Distributions from net realized gain	-	-	-	(1.34)	(.73)	(3.17)
Total distributions	(.19)	(.41)	(.58)	(1.95)	(1.31)	(3.73)
Net asset value, end of period	$ 15.93	$ 14.95	$ 13.01	$ 14.72	$ 19.11	$ 17.28
Total Return^{B, C}	7.84%	18.26%	(8.17)%	(13.63)%	18.73%	16.12%
Ratios to Average Net Assets^E
Expenses before expense reductions	.74%^A	.75%	.75%	.73%	.73%	.75%
Expenses net of voluntary waivers, if any	.74%^A	.75%	.75%	.73%	.73%	.75%
Expenses net of all reductions	.73%^A	.74%	.73%	.71%	.71%	.73%
Net investment income (loss)	2.07%^A	2.82%	3.31%^F	3.51%	3.32%	3.01%
Supplemental Data
Net assets, end of period (in millions)	$ 11,429	$ 10,813	$ 9,594	$ 11,177	$ 13,570	$ 12,223
Portfolio turnover rate	92%^A	120%	129%	133%	109%	104%

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns would have been lower had certain expenses not been reduced during the periods shown.

^D Calculated based on average shares outstanding during the period.

^E Expense ratios reflect operating expenses of the fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the fund during periods when reimbursements or reductions occur. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the fund.

^F Effective October 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities. Per-share data and ratios for periods prior to adoption have not been restated to reflect this change.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Notes to Financial Statements

For the period ended March 31, 2004

(Amounts in thousands except ratios)

1. Significant Accounting Policies.

Fidelity Asset Manager (the fund) is a fund of Fidelity Charles Street Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:

Foreign denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.

Semiannual Report

Notes to Financial Statements - continued

(Amounts in thousands except ratios)

1. Significant Accounting Policies - continued

Foreign Currency - continued

Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. The fund estimates the components of distributions received from Real Estate Investment Trusts (REITs). Distributions received in excess of income are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities, which is accrued using the interest method. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectibility of interest is reasonably assured.

Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.

Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), non-interested Trustees must defer receipt of a portion of, and may elect to defer receipt of an additional portion of, their annual compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of the fund or are invested in a cross-section of other Fidelity funds, and are marked-to-market. Deferred amounts remain in the fund until distributed in accordance with the Plan.

Semiannual Report

1. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

The federal tax cost of investments including unrealized appreciation (depreciation) as of period end was as follows:

Unrealized appreciation	$ 917,937
Unrealized depreciation	(336,867)
Net unrealized appreciation (depreciation)	$ 581,070
Cost for federal income tax purposes	$ 11,059,206

2. Operating Policies.

Semiannual Report

Notes to Financial Statements - continued

(Amounts in thousands except ratios)

2. Operating Policies - continued

Delayed Delivery Transactions and When-Issued Securities - continued

a delayed delivery or when-issued security. With respect to purchase commitments, the fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.

Futures Contracts. The fund may use futures contracts to manage its exposure to the stock market and to fluctuations in interest rates. Buying futures tends to increase the fund's exposure to the underlying instrument, while selling futures tends to decrease the fund's exposure to the underlying instrument or hedge other fund investments. Futures contracts involve, to varying degrees, risk of loss in excess of any futures variation margin reflected in the Statement of Assets and Liabilities. The underlying face amount at value of any open futures contracts at period end is shown in the Schedule of Investments under the caption "Futures Contracts." This amount reflects each contract's exposure to the underlying instrument at period end. Losses may arise from changes in the value of the underlying instruments or if the counter-parties do not perform under the contracts' terms. Gains (losses) are realized upon the expiration or closing of the futures contracts. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.

Loans and Other Direct Debt Instruments. The fund may invest in loans and loan participations, trade claims or other receivables. These investments may include standby financing commitments that obligate the fund to supply additional cash to the borrower on demand. Loan participations involve a risk of insolvency of the lending bank or other financial intermediary. Information regarding loans and other direct debt instruments is included under the caption "Other Information" at the end of the fund's Schedule of Investments.

Swap Agreements. The fund may invest in swaps for the purpose of managing its exposure to interest rate, credit or market risk.

Semiannual Report

2. Operating Policies - continued

Swap Agreements - continued

recorded in the accompanying Statement of Operations as realized gains or losses, respectively. The primary risk associated with interest rate swaps is that unfavorable changes in the fluctuation of interest rates could adversely impact the fund.

Total return swaps are agreements to exchange the return generated by one instrument for the return generated by another instrument, for example, the agreement to pay interest in exchange for a market-linked return based on a notional amount. To the extent the total return of the index exceeds the offsetting interest obligation, the fund will receive a payment from the counterparty. To the extent it is less, the fund will make a payment to the counterparty. Periodic payments received or made by the fund are recorded in the accompanying Statement of Operations as realized gains or losses, respectively.

Credit default swaps involve the exchange of a fixed rate premium for protection against the loss in value of an underlying debt instrument in the event of a defined credit event (such as payment default or bankruptcy). Under the terms of the swap, one party acts as a "guarantor" receiving a periodic payment that is a fixed percentage applied to a notional principal amount. In return the party agrees to purchase the notional amount of the underlying instrument, at par, if a credit event occurs during the term of the swap. The fund may enter into credit default swaps in which the fund or its counterparty act as guarantors. By acting as the guarantor of a swap, the fund assumes the market and credit risk of the underlying instrument including liquidity and loss of value. Premiums received or made by the fund are recorded in the accompanying Statement of Operations as realized gains or losses, respectively .

Swaps are marked-to-market daily based on dealer-supplied valuations and changes in value are recorded as unrealized appreciation (depreciation). Gains or losses are realized upon early termination of the swap agreement. Collateral, in the form of cash or securities, may be required to be held in segregated accounts with the fund's custodian in compliance with swap contracts. Risks may exceed amounts recognized on the Statement of Assets and Liabilities. These risks include changes in the returns of the underlying instruments, failure of the counterparties to perform under the contracts' terms and the possible lack of liquidity with respect to the swap agreements. Details of swap agreements open at period end are included in the fund's Schedule of Investments under the caption "Swap Agreements."

Semiannual Report

Notes to Financial Statements - continued

(Amounts in thousands except ratios)

2. Operating Policies - continued

Financing Transactions - continued

securities and bear the same interest rate but will be collateralized by different pools of mortgages. During the period between the sale and repurchase in a mortgage dollar roll transaction, a fund will not be entitled to receive interest and principal payments on the securities sold but will invest the proceeds of the sale in other securities which may enhance the yield and total return. In addition, the difference between the sale price and the future purchase price is recorded as an adjustment to investment income. During the period between the purchase and subsequent sale in a reverse mortgage dollar roll transaction a fund is entitled to interest and principal payments on the securities purchased. The price differential between the purchase and sale is recorded as an adjustment to investment income. Losses may arise due to changes in the value of the securities or if the counterparty does not perform under the terms of the agreement. If the counterparty files for bankruptcy or becomes insolvent, the fund's right to repurchase or sell securities may be limited.

3. Purchases and Sales of Investments.

Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.

4. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .25% of the fund's average net assets and a group fee rate that averaged .28% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .53% of the fund's average net assets.

Semiannual Report

4. Fees and Other Transactions with Affiliates - continued

5. Committed Line of Credit.

6. Security Lending.

Semiannual Report

Notes to Financial Statements - continued

(Amounts in thousands except ratios)

7. Bank Borrowings.

The fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions. The fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. Information regarding the fund's participation in the program is included under the caption "Other Information" at the end of the fund's Schedule of Investments.

8. Expense Reductions.

Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services included payments of certain expenses on behalf of the fund totaling $440 for the period. In addition, through arrangements with the fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. During the period, these credits reduced the fund's custody and transfer agent expenses by $2 and $28, respectively.

Semiannual Report

Independent Auditors' Report

To the Trustees of Fidelity Charles Street Trust and Shareholders of Fidelity Asset Manager:

We have audited the accompanying statement of assets and liabilities of Fidelity Asset Manager (the Fund), a fund of Fidelity Charles Street Trust, including the portfolio of investments, as of March 31, 2004, and the related statement of operations for the period then ended, the statement of changes in net assets for the six months in the period then ended and for the year ended September 30, 2003, and the financial highlights for the six month period ended March 31, 2004 and each of the five years in the period ended September 30, 2003. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of March 31, 2004, by correspondence with the custodian, brokers and agent banks; where replies were not received from brokers, we performed other auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Asset Manager as of March 31, 2004, the results of its operations for the period then ended, the changes in its net assets, and its financial highlights for the above stated periods, in conformity with accounting principles generally accepted in the United States of America.

/s/DELOITTE & TOUCHE LLP

DELOITTE & TOUCHE LLP

Boston, Massachusetts

May 21, 2004

Semiannual Report

Managing Your Investments

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Semiannual Report

To Visit Fidelity

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Semiannual Report

Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC

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Ohio

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Semiannual Report

To Write Fidelity

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Semiannual Report

Investment Adviser

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Semiannual Report

March 31, 2004

(2_fidelity_logos)(Registered_Trademark)

Chairman's Message	<Click Here>	Ned Johnson's message to shareholders.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.

Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.

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For more information on any Fidelity fund, including charges and expenses, call 1-800-544-6666 for a free prospectus. Read it carefully before you invest or send money.

Chairman's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

Best regards,

/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Semiannual Report

Investment Changes

Quality Diversification (% of fund's net assets)
As of March 31, 2004 *		As of September 30, 2003 **
	U.S. Government and U.S. Government Agency Obligations 55.6%		U.S. Government and U.S. Government Agency Obligations 61.5%
	AAA 9.2%		AAA 7.5%
	AA 3.9%		AA 4.0%
	A 15.1%		A 15.1%
	BBB 19.6%		BBB 16.5%
	BB and Below 1.5%		BB and Below 2.0%
	Not Rated 1.0%		Not Rated 0.8%
	Short-Term Investments and Net Other Assets^(dagger) (5.9)%		Short-Term Investments and Net Other Assets^(dagger) (7.4)%

We have used ratings from Moody's ® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P ® ratings. Securities rated BB or below were rated investment grade at the time of acquisition.

Average Years to Maturity as of March 31, 2004
		6 months ago
Years	5.9	5.6

Average years to maturity is based on the average time remaining until principal payments are expected from each of the fund's bonds, weighted by dollar amount.

Duration as of March 31, 2004
		6 months ago
Years	4.4	4.5

Duration shows how much a bond fund's price fluctuates with changes in comparable interest rates. If rates rise 1%, for example, a fund with a five-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example.

Asset Allocation (% of fund's net assets)
As of March 31, 2004 *		As of September 30, 2003 **
	Corporate Bonds 30.1%		Corporate Bonds 29.1%
	U.S. Government and U.S. Government Agency Obligations 55.6%		U.S. Government and U.S. Government Agency Obligations 61.5%
	Asset-Backed Securities 12.1%		Asset-Backed Securities 10.6%
	CMOs and Other Mortgage Related Securities 6.7%		CMOs and Other Mortgage Related Securities 4.3%
	Municipal Bonds 0.0%		Municipal Bonds 0.5%
	Other Investments 1.4%		Other Investments 1.4%
	Short-Term Investments and Net Other Assets^(dagger) (5.9)%		Short-Term Investments and Net Other Assets^(dagger) (7.4)%

* Foreign investments		9.0%		**Foreign investments		7.9%
* Futures and Swaps		4.1%		**Futures and Swaps		0.4%

^(dagger)Short-Term Investments and Net Other Assets are not included in the pie chart.

The information in the above tables is based on the combined investments of the fund and its pro-rata share of the investments of Fidelity's fixed-income central fund.

Semiannual Report

Investments March 31, 2004 (Unaudited)

Showing Percentage of Net Assets

Nonconvertible Bonds - 29.5%
	Principal Amount (000s)		Value (Note 1) (000s)
CONSUMER DISCRETIONARY - 4.1%
Auto Components - 0.7%
DaimlerChrysler NA Holding Corp.:
3.4% 12/15/04	$ 7,100		$ 7,169
4.05% 6/4/08	1,910		1,930
4.75% 1/15/08	8,490		8,852
			17,951
Automobiles - 0.2%
General Motors Corp. 7.2% 1/15/11	3,600		3,945
Media - 3.1%
AOL Time Warner, Inc.:
6.875% 5/1/12	3,700		4,233
7.625% 4/15/31	2,180		2,550
7.7% 5/1/32	4,500		5,320
British Sky Broadcasting Group PLC (BSkyB) yankee 8.2% 7/15/09	6,975		8,414
Clear Channel Communications, Inc. 5.75% 1/15/13	1,400		1,483
Continental Cablevision, Inc.:
8.3% 5/15/06	1,775		1,978
9% 9/1/08	1,500		1,823
Cox Communications, Inc.:
3.875% 10/1/08	2,000		2,028
4.625% 6/1/13	4,800		4,686
7.125% 10/1/12	2,105		2,435
7.75% 11/1/10	6,210		7,410
Liberty Media Corp. 5.7% 5/15/13	3,900		4,072
News America Holdings, Inc.:
7.75% 1/20/24	10,000		11,829
8% 10/17/16	5,400		6,730
TCI Communications, Inc. 9.8% 2/1/12	4,400		5,841
Time Warner Entertainment Co. LP:
8.875% 10/1/12	750		960
10.15% 5/1/12	500		676
Walt Disney Co. 5.375% 6/1/07	4,100		4,402
			76,870
Specialty Retail - 0.1%
Boise Cascade Corp. 7.5% 2/1/08	1,920		2,108
TOTAL CONSUMER DISCRETIONARY			100,874
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
CONSUMER STAPLES - 0.9%
Food & Staples Retailing - 0.5%
Wal-Mart Stores, Inc. 4.125% 2/15/11	$ 11,430		$ 11,606
Food Products - 0.1%
Kraft Foods, Inc. 5.25% 6/1/07	2,140		2,307
Tobacco - 0.3%
Altria Group, Inc. 7% 11/4/13	4,700		5,180
Philip Morris Companies, Inc. 7% 7/15/05	3,600		3,794
			8,974
TOTAL CONSUMER STAPLES			22,887
ENERGY - 0.7%
Energy Equipment & Services - 0.2%
Cooper Cameron Corp. 2.65% 4/15/07	2,835		2,830
Weatherford International Ltd. 4.95% 10/15/13	2,600		2,641
			5,471
Oil & Gas - 0.5%
Anadarko Petroleum Corp. 5% 10/1/12	1,500		1,553
Duke Energy Field Services LLC 7.875% 8/16/10	5,400		6,459
Louis Dreyfus Natural Gas Corp. 6.875% 12/1/07	3,000		3,346
			11,358
TOTAL ENERGY			16,829
FINANCIALS - 16.2%
Capital Markets - 2.3%
Amvescap PLC:
5.9% 1/15/07	2,645		2,883
yankee 6.6% 5/15/05	6,765		7,102
Bank of New York Co., Inc.:
3.4% 3/15/13 (d)	2,400		2,395
4.25% 9/4/12 (d)	2,835		2,926
Credit Suisse First Boston (USA), Inc. 5.875% 8/1/06	3,870		4,191
Goldman Sachs Group, Inc.:
5.7% 9/1/12	3,690		3,993
6.6% 1/15/12	8,325		9,541
J.P. Morgan Chase & Co. 4.875% 3/15/14	3,990		4,033
Lehman Brothers Holdings, Inc. 4% 1/22/08	3,060		3,176
Merrill Lynch & Co., Inc. 4% 11/15/07	5,160		5,370
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
FINANCIALS - continued
Capital Markets - continued
Morgan Stanley:
4.75% 4/1/14	$ 5,960		$ 5,804
6.6% 4/1/12	4,340		4,990
			56,404
Commercial Banks - 1.3%
Export-Import Bank of Korea:
4.125% 2/10/09 (a)	1,320		1,345
5.25% 2/10/14 (a)	4,825		4,996
Fleet Financial Group, Inc. 7.125% 4/15/06	260		287
FleetBoston Financial Corp. 7.25% 9/15/05	3,175		3,427
Korea Development Bank:
3.875% 3/2/09	4,800		4,838
5.75% 9/10/13	9,313		10,041
Popular North America, Inc. 6.125% 10/15/06	3,325		3,629
Wells Fargo Bank NA, San Francisco 7.55% 6/21/10	2,200		2,662
			31,225
Consumer Finance - 4.7%
American General Finance Corp.:
2.75% 6/15/08	305		300
4% 3/15/11	5,500		5,477
4.5% 11/15/07	7,300		7,719
5.875% 7/14/06	3,385		3,666
Capital One Bank:
4.875% 5/15/08	4,370		4,605
6.5% 6/13/13	4,660		5,069
Ford Motor Credit Co.:
6.5% 1/25/07	8,140		8,695
7% 10/1/13	3,600		3,799
7.375% 10/28/09	12,470		13,688
General Electric Capital Corp.:
6% 6/15/12	2,500		2,793
6.125% 2/22/11	14,500		16,362
General Motors Acceptance Corp.:
6.125% 2/1/07	655		704
6.125% 8/28/07	655		706
6.875% 9/15/11	8,375		9,086
Household Finance Corp.:
6.375% 10/15/11	9,910		11,237
6.375% 11/27/12	3,370		3,813
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
FINANCIALS - continued
Consumer Finance - continued
Household Finance Corp.: - continued
6.75% 5/15/11	$ 5,160		$ 5,960
7% 5/15/12	2,045		2,400
MBNA America Bank NA 6.625% 6/15/12	4,320		4,940
MBNA Corp. 7.5% 3/15/12	5,360		6,417
			117,436
Diversified Financial Services - 4.9%
Ameritech Capital Funding Corp. euro 6.25% 5/18/09	2,255		2,517
Cadbury Schweppes U.S. Finance LLC:
3.875% 10/1/08 (a)	3,355		3,417
5.125% 10/1/13 (a)	2,120		2,193
Citigroup, Inc. 7.25% 10/1/10	7,290		8,682
Delta Air Lines, Inc. pass thru trust certificates 7.57% 11/18/10	1,460		1,454
Deutsche Telekom International Finance BV:
5.25% 7/22/13	3,270		3,404
8.25% 6/15/05	2,890		3,111
8.5% 6/15/10	5,165		6,341
8.75% 6/15/30	1,795		2,353
Devon Financing Corp. U.L.C. 7.875% 9/30/31	1,805		2,221
Hutchison Whampoa International Ltd. 6.25% 1/24/14 (a)	3,800		3,942
International Lease Finance Corp. 4.375% 11/1/09	2,800		2,917
Mizuho Financial Group Cayman Ltd. 5.79% 4/15/14 (a)	3,415		3,503
NiSource Finance Corp. 7.875% 11/15/10	7,795		9,427
Pemex Project Funding Master Trust:
6.125% 8/15/08	4,000		4,316
7.375% 12/15/14	14,500		16,131
Petronas Capital Ltd. 7% 5/22/12 (a)	18,165		21,104
Sprint Capital Corp.:
6.125% 11/15/08	3,700		4,078
7.125% 1/30/06	2,520		2,741
Telecom Italia Capital 4% 11/15/08 (a)	5,700		5,827
Verizon Global Funding Corp.:
7.25% 12/1/10	4,980		5,868
7.375% 9/1/12	6,435		7,678
			123,225
Insurance - 0.7%
Aegon NV 4.75% 6/1/13	6,900		7,013
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
FINANCIALS - continued
Insurance - continued
Assurant, Inc. 5.625% 2/15/14 (a)	$ 1,830		$ 1,906
Hartford Financial Services Group, Inc. 4.625% 7/15/13	1,460		1,464
Prudential Financial, Inc. 3.75% 5/1/08	3,310		3,389
Travelers Property Casualty Corp.:
5% 3/15/13	1,710		1,757
6.375% 3/15/33	2,200		2,335
			17,864
Real Estate - 1.5%
Camden Property Trust 5.875% 6/1/07	2,400		2,631
CarrAmerica Realty Corp. 5.25% 11/30/07	2,805		3,020
CenterPoint Properties Trust:
5.75% 8/15/09	3,065		3,363
6.75% 4/1/05	1,100		1,146
EOP Operating LP:
4.75% 3/15/14	4,800		4,735
7.75% 11/15/07	1,210		1,409
Gables Realty LP:
5.75% 7/15/07	5,500		5,962
6.8% 3/15/05	765		796
Healthcare Realty Trust, Inc. 5.125% 4/1/14	3,585		3,539
Merry Land & Investment Co., Inc. 7.25% 6/15/05	3,150		3,348
ProLogis 6.7% 4/15/04	970		972
Regency Centers LP 6.75% 1/15/12	5,055		5,777
			36,698
Thrifts & Mortgage Finance - 0.8%
Countrywide Home Loans, Inc.:
3.25% 5/21/08	965		968
4% 3/22/11	5,990		5,928
5.625% 5/15/07	3,900		4,248
Independence Community Bank Corp. 3.75% 4/1/14 (d)	1,625		1,615
Washington Mutual Bank 6.875% 6/15/11	3,150		3,674
Washington Mutual, Inc. 4.625% 4/1/14	4,575		4,484
			20,917
TOTAL FINANCIALS			403,769
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
INDUSTRIALS - 1.1%
Aerospace & Defense - 0.4%
Raytheon Co.:
5.5% 11/15/12	$ 1,915		$ 2,031
6.15% 11/1/08	4,000		4,447
6.75% 8/15/07	2,420		2,721
			9,199
Commercial Services & Supplies - 0.0%
Boise Cascade Office Products Corp. 7.05% 5/15/05	1,580		1,636
Industrial Conglomerates - 0.7%
Tyco International Group SA yankee:
6.375% 10/15/11	2,700		2,953
6.75% 2/15/11	12,825		14,282
			17,235
TOTAL INDUSTRIALS			28,070
INFORMATION TECHNOLOGY - 0.5%
Communications Equipment - 0.5%
Motorola, Inc.:
6.75% 2/1/06	1,000		1,076
7.625% 11/15/10	1,000		1,164
8% 11/1/11	8,155		9,744
			11,984
MATERIALS - 0.7%
Containers & Packaging - 0.1%
Sealed Air Corp.:
5.625% 7/15/13 (a)	1,020		1,069
6.875% 7/15/33 (a)	2,140		2,325
			3,394
Paper & Forest Products - 0.6%
International Paper Co.:
4.25% 1/15/09	955		980
5.5% 1/15/14	2,410		2,500
5.85% 10/30/12	3,380		3,629
Weyerhaeuser Co.:
5.25% 12/15/09	2,405		2,592
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
MATERIALS - continued
Paper & Forest Products - continued
Weyerhaeuser Co.: - continued
6.125% 3/15/07	$ 1,895		$ 2,073
6.75% 3/15/12	2,130		2,406
			14,180
TOTAL MATERIALS			17,574
TELECOMMUNICATION SERVICES - 2.3%
Diversified Telecommunication Services - 1.6%
AT&T Corp.:
8.05% 11/15/11	1,240		1,450
8.75% 11/15/31	1,580		1,864
BellSouth Corp. 6% 10/15/11	1,375		1,525
British Telecommunications PLC:
8.375% 12/15/10	4,545		5,616
8.875% 12/15/30	1,500		2,001
France Telecom SA 8.75% 3/1/11	7,940		9,697
Koninklijke KPN NV yankee 8% 10/1/10	5,580		6,796
TELUS Corp. yankee 7.5% 6/1/07	10,835		12,325
			41,274
Wireless Telecommunication Services - 0.7%
America Movil SA de CV:
4.125% 3/1/09 (a)	2,390		2,395
5.5% 3/1/14 (a)	5,685		5,668
AT&T Wireless Services, Inc. 7.875% 3/1/11	690		823
Cingular Wireless LLC:
5.625% 12/15/06	6,120		6,606
7.125% 12/15/31	1,500		1,676
			17,168
TOTAL TELECOMMUNICATION SERVICES			58,442
UTILITIES - 3.0%
Electric Utilities - 1.8%
Dominion Resources, Inc.:
6.25% 6/30/12	2,450		2,709
8.125% 6/15/10	3,065		3,731
DTE Energy Co. 7.05% 6/1/11	2,665		3,052
Duke Capital Corp. 6.75% 2/15/32	2,070		2,155
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
UTILITIES - continued
Electric Utilities - continued
FirstEnergy Corp.:
5.5% 11/15/06	$ 2,920		$ 3,105
6.45% 11/15/11	3,965		4,341
Hydro-Quebec yankee 8% 2/1/13	250		321
Illinois Power Co. 7.5% 6/15/09	4,800		5,424
MidAmerican Energy Holdings, Inc.:
4.625% 10/1/07	2,385		2,510
5.875% 10/1/12	1,595		1,724
Oncor Electric Delivery Co. 6.375% 5/1/12	5,720		6,452
Pacific Gas & Electric Co.:
3.6% 3/1/09	715		718
4.2% 3/1/11	845		846
4.8% 3/1/14	1,125		1,130
6.05% 3/1/34	4,060		4,106
Southern California Edison Co. 4.65% 4/1/15	1,545		1,530
			43,854
Gas Utilities - 0.5%
Consolidated Natural Gas Co. 6.85% 4/15/11	1,200		1,386
Ras Laffan Liquid Natural Gas Co. Ltd. yankee 8.294% 3/15/14 (a)	5,200		6,240
Texas Eastern Transmission Corp.:
5.25% 7/15/07	1,395		1,494
7.3% 12/1/10	3,435		4,047
			13,167
Multi-Utilities & Unregulated Power - 0.7%
Constellation Energy Group, Inc.:
6.35% 4/1/07	4,790		5,281
7% 4/1/12	2,805		3,233
Williams Companies, Inc.:
7.125% 9/1/11	6,770		7,109
7.5% 1/15/31	910		878
			16,501
TOTAL UTILITIES			73,522
TOTAL NONCONVERTIBLE BONDS (Cost $674,566)		733,951
U.S. Government and Government Agency Obligations - 17.7%
	Principal Amount (000s)		Value (Note 1) (000s)
U.S. Government Agency Obligations - 7.5%
Fannie Mae:
4.625% 10/15/13	$ 35,000		$ 36,027
5% 5/14/07	16,700		16,776
5.125% 1/2/14	8,700		9,071
5.25% 8/1/12	1,620		1,720
5.5% 7/18/12	8,000		8,329
6% 5/15/11	5,875		6,691
6.125% 3/15/12	15,969		18,297
6.25% 2/1/11	5,425		6,172
6.25% 7/19/11	24,700		25,079
Freddie Mac:
3.375% 4/15/09	16,660		16,852
4.5% 1/15/14	14,050		14,269
5.25% 11/5/12	2,810		2,913
5.875% 3/21/11	17,110		19,065
6% 5/25/12	5,000		5,035
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS			186,296
U.S. Treasury Obligations - 10.2%
U.S. Treasury Bonds:
6.125% 11/15/27	17,300		20,410
6.125% 8/15/29	82,010		97,214
6.25% 5/15/30	1,970		2,378
6.375% 8/15/27	10,880		13,212
8% 11/15/21	41,000		57,559
9.875% 11/15/15	4,860		7,467
11.25% 2/15/15	1,400		2,302
U.S. Treasury Notes:
2.375% 8/15/06	23,695		24,044
4% 11/15/12	18,020		18,479
5% 8/15/11	11,140		12,275
TOTAL U.S. TREASURY OBLIGATIONS			255,340
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $422,626)		441,636
U.S. Government Agency - Mortgage Securities - 34.4%
	Principal Amount (000s)		Value (Note 1) (000s)
Fannie Mae - 29.2%
4% 4/1/19 (b)	$ 19,868		$ 19,725
4.5% 4/1/19 (b)	46,710		47,279
4.5% 7/1/33 to 12/1/33	52,251		51,118
5% 5/1/34 (b)	70,000		70,088
5.5% 1/1/09 to 10/1/33	42,874		44,463
5.5% 4/1/34 (b)	9,659		9,894
6% 4/1/13 to 5/1/32	3,283		3,443
6% 4/1/19 (b)	100,000		105,281
6% 4/1/34 (b)	9,345		9,722
6.5% 3/1/08 to 2/1/33 (b)	158,956		167,782
6.5% 4/1/34 (b)	34,133		35,850
7% 5/1/13 to 6/1/33 (c)	148,104		157,235
7.5% 1/1/26 to 7/1/29	5,304		5,695
9.5% 4/1/17 to 11/1/18	144		162
TOTAL FANNIE MAE			727,737
Freddie Mac - 0.0%
8.5% 5/1/25 to 8/1/27	618		674
Government National Mortgage Association - 5.2%
5.5% 4/15/29 to 8/15/33	6,911		7,115
5.5% 4/1/34 (b)	6,784		6,977
6% 10/15/08 to 7/15/29	2,082		2,192
6.5% 10/15/27 to 8/15/32	4,972		5,254
7% 3/15/23 to 1/15/33	48,964		52,166
7% 4/1/34 (b)	50,000		53,250
7.5% 12/15/05 to 10/15/27	1,922		2,078
8% 1/15/30 to 6/15/32	168		183
8.5% 8/15/29 to 8/15/30	285		312
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION			129,527
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES (Cost $847,947)		857,938
Asset-Backed Securities - 7.5%

ACE Securities Corp.:
Series 2003-FM1 Class M2, 2.94% 11/25/32 (d)	1,920		1,959
Series 2004-HE1:
Class M1, 1.59% 2/25/34 (d)	975		975
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (Note 1) (000s)
ACE Securities Corp.: - continued
Series 2004-HE1:
Class M2, 2.19% 2/25/34 (d)	$ 1,100		$ 1,100
American Express Credit Account Master Trust Series 1999-2 Class B, 6.1% 12/15/06	2,600		2,615
Ameriquest Mortgage Securities, Inc. Series 2004-R2:
Class M1, 1.53% 4/25/34 (b)(d)	545		545
Class M2, 1.58% 4/25/34 (b)(d)	425		425
Asset Backed Securities Corp. Home Equity Loan Trust:
Series 2003-HE2 Class A2, 1.47% 4/15/33 (d)	4,626		4,643
Series 2003-HE7 Class A3, 1.45% 12/15/33 (d)	5,922		5,940
Capital One Master Trust Series 2001-3A Class A, 5.45% 3/16/09	2,715		2,887
Capital One Multi-Asset Execution Trust:
Series 2002-B1 Class B1, 1.77% 7/15/08 (d)	5,185		5,217
Series 2003-2B Class B2, 3.5% 2/17/09	3,750		3,849
Series 2003-A1 Class A1, 1.48% 1/15/09 (d)	18,080		18,176
Series 2003-A4 Class A4, 3.65% 7/15/11	2,224		2,273
Series 2003-B1 Class B1, 2.26% 2/17/09 (d)	7,130		7,263
Series 2003-B4 Class B4, 1.89% 7/15/11 (d)	3,395		3,466
CDC Mortgage Capital Trust Series 2003-HE2 Class M2, 2.99% 10/25/33 (d)	1,670		1,723
Chase Credit Card Owner Trust Series 2004-1 Class B, 1.3035% 5/15/09 (d)	1,855		1,855
Chase Manhattan Auto Owner Trust Series 2001-A Class CTFS, 5.06% 2/15/08	666		680
Citibank Credit Card Issuance Trust:
Series 2000-C2 Class C2, 1.77% 10/15/07 (d)	7,200		7,219
Series 2002-B1 Class B1, 1.44% 6/25/09 (d)	3,960		3,979
Countrywide Home Loans, Inc.:
Series 2004-2 Class M1, 1.59% 5/25/34 (d)	2,300		2,300
Series 2004-3 Class M1, 1.59% 6/25/34 (d)	650		650
Fieldstone Mortgage Investment Corp. Series 2003-1:
Class M1, 1.77% 11/25/33 (d)	700		704
Class M2, 2.84% 11/25/33 (d)	400		402
First Franklin Mortgage Loan Trust Series 2004-FF2:
Class M3, 1.65% 3/25/34 (b)(d)	175		175
Class M4, 2% 3/25/34 (b)(d)	125		125
Class M6, 2.35% 3/25/34 (b)(d)	175		175
Ford Credit Auto Owner Trust:
Series 2001-B Class B, 5.71% 9/15/05	1,775		1,797
Series 2001-C Class B, 5.54% 12/15/05	3,000		3,046
GSAMP Trust Series 2004-FM2:
Class M1, 1.59% 1/25/34 (d)	1,500		1,500
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (Note 1) (000s)
GSAMP Trust Series 2004-FM2: - continued
Class M2, 2.19% 1/25/34 (d)	$ 700		$ 700
Class M3, 2.39% 1/25/34 (d)	700		700
Home Equity Asset Trust:
Series 2003-2:
Class A2, 1.47% 8/25/33 (d)	888		891
Class M1, 1.97% 8/25/33 (d)	1,595		1,620
Series 2003-4:
Class M1, 1.89% 10/25/33 (d)	2,125		2,154
Class M2, 2.99% 10/25/33 (d)	2,515		2,544
Series 2003-5N Class A, 7.5% 1/27/34 (a)	364		364
Home Equity Asset Trust NIMS Trust:
Series 2002-4N Class A, 8% 5/27/33 (a)	727		727
Series 2003-2N Class A, 8% 9/27/33 (a)	1,045		1,045
Honda Auto Receivables Owner Trust Series 2001-2 Class A4, 5.09% 10/18/06	3,525		3,551
Household Home Equity Loan Trust Series 2002-2 Class A, 1.39% 4/20/32 (d)	4,437		4,449
Long Beach Mortgage Loan Trust Series 2003-3 Class M2, 2.94% 7/25/33 (d)	2,545		2,620
MBNA Credit Card Master Note Trust:
Series 2001-B2 Class B2, 1.45% 1/15/09 (d)	24,500		24,616
Series 2003-B3 Class B3, 1.465% 1/18/11 (d)	3,295		3,308
Series 2003-B5 Class B5, 1.46% 2/15/11 (d)	4,705		4,742
Meritage Mortgage Loan Trust Series 2004-1:
Class M1, 1.59% 4/25/34 (d)	925		925
Class M2, 1.64% 4/25/34 (d)	175		175
Class M3, 2.04% 4/25/34 (d)	350		350
Class M4, 2.19% 4/25/34 (d)	235		235
Morgan Stanley ABS Capital I, Inc.:
Series 2002-HE3 Class M1, 2.19% 12/27/32 (d)	885		902
Series 2002-NC6N Class NOTE, 9.5% 9/25/32 (a)	98		99
Series 2003-HE1 Class M2, 2.99% 5/25/33 (d)	2,910		2,955
Series 2003-NC8 Class M1, 1.79% 9/25/33 (d)	1,330		1,335
Morgan Stanley Dean Witter Capital I Trust:
Series 2001-NC4 Class M1, 2.09% 1/25/32 (d)	2,765		2,813
Series 2002-NC1 Class M1, 1.89% 2/25/32 (a)(d)	1,660		1,677
Series 2002-NC3 Class M1, 1.81% 8/25/32 (d)	723		731
Series 2002-NC5N Class NOTE, 9.5% 9/25/32 (a)	457		458
Series 2003-NC2 Class M2, 3.09% 2/25/33 (d)	1,430		1,470
Morgan Stanley Dean Witter Capital I, Inc.:
Series 2002-AM3N Class NOTE, 9.5% 2/25/33 (a)	78		78
Series 2003-NC2N Class NOTE, 9.5% 12/25/32 (a)	684		687
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (Note 1) (000s)
New Century Home Equity Loan Trust Series 2003-2 Class A2, 1.52% 1/25/33 (d)	$ 3,890		$ 3,899
Nissan Auto Lease Trust Series 2003-A Class A3B, 2.57% 6/15/09	4,800		4,864
NovaStar Home Equity Loan Series 2004-1:
Class M1, 1.54% 6/25/34 (d)	650		652
Class M4, 2.065% 6/25/34 (d)	1,065		1,066
Sears Credit Account Master Trust II:
Series 2000-2 Class A, 6.75% 9/16/09	6,300		6,750
Series 2002-4 Class A, 1.22% 8/18/09 (d)	5,500		5,508
SLM Private Credit Student Loan Trust Series 2004-A Class C, 2.07% 6/15/33 (d)	2,165		2,167
Superior Wholesale Inventory Financing Trust VII Series 2003-A8 Class CTFS, 1.54% 3/15/11 (a)(d)	4,670		4,655
TOTAL ASSET-BACKED SECURITIES (Cost $184,126)		186,145
Collateralized Mortgage Obligations - 3.4%

Private Sponsor - 2.4%
Bank of America Mortgage Securities, Inc.:
Series 2003-K:
Class 1A1, 3.4069% 12/25/33 (d)	1,978		1,999
Class 2A1, 4.2457% 12/25/33 (d)	4,469		4,537
Series 2003-L Class 2A1, 4.0764% 1/25/34 (d)	8,144		8,259
Series 2004-B:
Class 1A1, 3.5% 3/25/34 (d)	3,755		3,806
Class 2A2, 4.1831% 3/25/34	2,685		2,736
Series 2004-C Class 1A1, 3.4467% 4/25/34 (d)	5,500		5,571
CS First Boston Mortgage Securities Corp. Series 2004-AR3 Class 6A2, 1.46% 3/25/34 (d)	2,395		2,396
Master Alternative Loan Trust Series 2004-3 Class 3A1, 6% 4/25/34	900		934
Residential Asset Mortgage Products, Inc. sequential pay Series 2003-SL1 Class A31, 7.125% 4/25/31	4,033		4,234
Residential Finance LP/Residential Finance Development Corp. floater:
Series 2003-B:
Class B3, 2.6425% 7/10/35 (a)(d)	4,844		4,922
Class B4, 2.8425% 7/10/35 (a)(d)	3,657		3,716
Class B5, 3.4425% 7/10/35 (a)(d)	3,460		3,525
Class B6, 3.9425% 7/10/35 (a)(d)	1,582		1,611
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Private Sponsor - continued
Residential Finance LP/Residential Finance Development Corp. floater: - continued
Series 2003-CB1:
Class B3, 2.5425% 6/10/35 (a)(d)	$ 1,665		$ 1,691
Class B4, 2.7425% 6/10/35 (a)(d)	1,492		1,515
Class B5, 3.3425% 6/10/35 (a)(d)	1,018		1,037
Class B6, 3.8425% 6/10/35 (a)(d)	603		614
Series 2004-A Class B5, 2.79% 2/10/36 (a)(d)	4,000		4,000
Washington Mutual Mortgage Securities Corp. sequential pay Series 2003-MS9 Class 2A1, 7.5% 12/25/33	1,204		1,259
TOTAL PRIVATE SPONSOR			58,362
U.S. Government Agency - 1.0%
Fannie Mae planned amortization class Series 1994-81 Class PJ, 8% 7/25/23	4,469		4,552
Fannie Mae guaranteed REMIC pass thru certificates planned amortization class Series 2001-53 Class OH, 6.5% 6/25/30	474		481
Freddie Mac planned amortization class Series 2355 Class CD, 6.5% 6/15/30	561		568
Freddie Mac Multi-class participation certificates guaranteed:
planned amortization class Series 1669 Class H, 6.5% 7/15/23	10,000		10,554
Series 2764:
Class ZA, 5% 10/15/32	510		507
Class ZB, 5% 3/15/33	765		761
Class ZC, 4.5% 3/15/19	545		542
Series 2769 Class ZA, 5% 9/15/32	765		763
Ginnie Mae guaranteed Multi-family pass thru securities sequential pay Series 2002-35 Class C, 5.8664% 10/16/23 (d)	745		821
Ginnie Mae guaranteed REMIC pass thru securities sequential pay Series 2003-59 Class D, 3.654% 10/16/27	6,220		6,039
TOTAL U.S. GOVERNMENT AGENCY			25,588
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $82,771)		83,950
Commercial Mortgage Securities - 3.3%
	Principal Amount (000s)		Value (Note 1) (000s)
Bayview Commercial Asset Trust floater Series 2004-1:
Class A, 1.45% 4/25/34 (a)(d)	$ 3,393		$ 3,393
Class B, 2.99% 4/25/34 (a)(d)	399		399
Class M1, 1.65% 4/25/34 (a)(d)	299		299
Class M2, 2.29% 4/25/34 (a)(d)	299		299
Bear Stearns Commercial Mortgage Securities, Inc. floater Series 2003-BA1A Class A1, 1.37% 4/14/15 (a)(d)	7,467		7,465
Chase Commercial Mortgage Securities Corp. Series 2001-245 Class A2, 6.0658% 2/12/16 (a)(d)	1,950		2,184
COMM floater:
Series 2001-FL5A Class A2, 1.64% 11/15/13 (a)(d)	1,131		1,131
Series 2002-FL7 Class A2, 1.44% 11/15/14 (a)(d)	3,975		3,974
Commercial Resecuritization Trust sequential pay Series 1999-ABC1 Class A, 6.74% 1/27/09 (a)	3,924		4,192
CS First Boston Mortgage Securities Corp.:
sequential pay Series 2000-C1 Class A2, 7.545% 4/15/62	3,100		3,693
Series 1997-C2 Class D, 7.27% 1/17/35	1,065		1,216
Deutsche Mortgage & Asset Receiving Corp. sequential pay Series 1998-C1 Class D, 7.231% 6/15/31	1,230		1,313
DLJ Commercial Mortgage Corp. sequential pay Series 2000-CF1 Class A1B, 7.62% 6/10/33	8,000		9,614
Equitable Life Assurance Society of the United States Series 174:
Class B1, 7.33% 5/15/06 (a)	1,000		1,101
Class C1, 7.52% 5/15/06 (a)	1,000		1,103
Ginnie Mae guaranteed REMIC pass thru securities:
sequential pay:
Series 2002-83 Class B, 4.6951% 12/16/24	2,430		2,535
Series 2003-22 Class B, 3.963% 5/16/32	4,210		4,241
Series 2003-36 Class C, 4.254% 2/16/31	3,380		3,433
Series 2003-47 Class C, 4.227% 10/16/27	6,085		6,182
Series 2003-47 Class XA, 0.0213% 6/16/43 (d)(f)	19,091		951
GS Mortgage Securities Corp. II:
sequential pay:
Series 2001-LIBA Class A2, 6.615% 2/14/16 (a)	1,715		1,942
Series 2003-C1 Class A2A, 3.59% 1/10/40	3,130		3,201
Series 1998-GLII Class E, 6.9702% 4/13/31 (d)	490		506
Leafs CMBS I Ltd./Leafs CMBS I Corp. Series 2002-1A Class C, 4.13% 11/20/37 (a)	6,400		5,970
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Thirteen Affiliates of General Growth Properties, Inc. sequential pay Series 1 Class A2, 6.602% 11/15/07 (a)	$ 7,000		$ 7,792
Trizechahn Office Properties Trust Series 2001-TZHA Class E3, 7.253% 3/15/13 (a)	3,260		3,476
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $77,960)		81,605
Foreign Government and Government Agency Obligations - 1.3%

Chilean Republic:
5.5% 1/15/13	3,525		3,725
7.125% 1/11/12	3,915		4,571
New Brunswick Province yankee 7.625% 2/15/13	500		628
State of Israel 4.625% 6/15/13	975		952
United Mexican States:
4.625% 10/8/08	13,845		14,330
7.5% 1/14/12	6,400		7,440
TOTAL FOREIGN GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $29,115)		31,646
Supranational Obligations - 0.1%

Corporacion Andina de Fomento 6.875% 3/15/12 (Cost $3,037)	3,070		3,525

Fixed-Income Funds - 12.3%
	Shares
Fidelity Ultra-Short Central Fund (e) (Cost $306,000)	3,068,203		305,777
Cash Equivalents - 4.9%
	Maturity Amount (000s)		Value (Note 1) (000s)
Investments in repurchase agreements (Collateralized by U.S. Government Obligations, in a joint trading account at 1.08%, dated 3/31/04 due 4/1/04) (Cost $122,357)	$ 122,361		$ 122,357
TOTAL INVESTMENT PORTFOLIO - 114.4% (Cost $2,750,505)			2,848,530
NET OTHER ASSETS - (14.4)%			(357,572)
NET ASSETS - 100%		$ 2,490,958

Swap Agreements
	Expiration Date	Notional Amount (000s)	Unrealized Appreciation/ (Depreciation) (000s)
Credit Default Swap
Receive quarterly notional amount multiplied by .35% and pay Goldman Sachs upon default event of Devon Energy Corp., par value of the notional amount of Devon Energy Corp. 7.95% 4/15/32	June 2006	$ 1,700	$ 0
Receive quarterly notional amount multiplied by .41% and pay Merrill Lynch, Inc. upon default event of Talisman Energy, Inc., par value of the notional amount of Talisman Energy, Inc. 7.25% 10/15/27	March 2009	2,100	(15)
Receive quarterly notional amount multiplied by .44% and pay JPMorgan Chase, Inc. upon default event of Lockheed Martin Corp., par value of the notional amount of Lockheed Martin Corp. 8.2% 12/1/09	Dec. 2008	2,700	(4)
Receive quarterly notional amount multiplied by .53% and pay Deutsche Bank upon default event of SBC Communications, Inc., par value of the notional amount of SBC Communications, Inc. 6.25% 3/15/11	March 2009	2,700	2
Receive quarterly notional amount multiplied by .53% and pay Lehman Brothers, Inc., upon default event of SBC Communications, Inc., par value of the notional amount of SBC Communications, Inc. 6.25% 3/15/11	March 2009	1,900	1
Swap Agreements - continued
	Expiration Date	Notional Amount (000s)	Unrealized Appreciation/ (Depreciation) (000s)
Credit Default Swap - continued
Receive quarterly notional amount multiplied by .565% and pay Morgan Stanley, Inc. upon default event of Walt Disney Co., par value of the notional amount of Walt Disney Co. 6.375% 3/1/12	March 2009	$ 3,000	$ (2)
Receive quarterly notional amount multiplied by .62% and pay Goldman Sachs upon default of SLM Corp., par value of the notional amount of SLM Corp. 1.07% 7/25/35	August 2007	980	11
Receive quarterly notional amount multiplied by 1.38% and pay Merrill Lynch, Inc. upon default event of Bombardier, Inc., par value of the notional amount of Bombardier, Inc. 6.75% 5/1/12	March 2009	500	(11)
Receive quarterly notional amount multiplied by 1.4% and pay Merrill Lynch, Inc. upon default event of Bombardier, Inc., par value of the notional amount of Bombardier, Inc. 6.75% 5/1/12	March 2009	1,700	(36)
Receive quarterly notional amount multiplied by 1.45% and pay Deutsche Bank upon default event of News America, Inc., par value of the notional amount of News America, Inc. 6.625% 1/9/08	April 2010	1,700	79
TOTAL CREDIT DEFAULT SWAP		18,980	25
Interest Rate Swap
Receive quarterly a fixed rate equal to 2.34034% and pay quarterly a floating rate based on 3-month LIBOR with JPMorgan Chase, Inc.	March 2007	25,000	57
Receive quarterly a fixed rate equal to 2.4198% and pay quarterly a floating rate based on 3-month LIBOR with Merrill Lynch, Inc.	Dec. 2005	25,000	321
Receive quarterly a fixed rate equal to 2.5664% and pay quarterly a floating rate based on 3-month LIBOR with Merrill Lynch, Inc.	March 2006	5,200	74
TOTAL INTEREST RATE SWAP		55,200	452
Swap Agreements - continued
	Expiration Date	Notional Amount (000s)	Unrealized Appreciation/ (Depreciation) (000s)
Total Return Swap
Receive monthly a return equal to Lehman Brothers CMBS AAA 8.5+ and pay monthly a floating rate based on 1-month LIBOR minus 65 basis points with Lehman Brothers, Inc.	Oct. 2004	$ 5,200	$ 85
Receive monthly a return equal to Lehman Brothers CMBS Erisa Eligible and pay monthly a floating rate based on 1-month LIBOR minus 50 basis points with Lehman Brothers, Inc.	August 2004	5,415	60
Receive monthly a return equal to Lehman Brothers CMBS Erisa Eligible and pay monthly a floating rate based on 1-month LIBOR minus 50 basis points with Lehman Brothers, Inc.	Sept. 2004	4,800	12
Receive quarterly a return equal to Banc of America Securities LLC AAA 10Yr Commercial Mortgage-Backed Securities Daily Index and pay quarterly a floating rate based on 3-month LIBOR minus 75 basis points with Bank of America	May 2004	5,200	98
Receive quarterly a return equal to Banc of America Securities LLC AAA 10Yr Commercial Mortgage-Backed Securities Daily Index and pay quarterly a floating rate based on 3-month LIBOR minus 80 basis points with Bank of America	April 2004	5,200	101
Receive quarterly a return equal to Banc of America Securities LLC AAA 10Yr Commercial Mortgage-Backed Securities Daily Index and pay quarterly a floating rate based on 3-month LIBOR minus 80 basis points with Bank of America	July 2004	5,200	129
TOTAL TOTAL RETURN SWAP		31,015	485
		$ 105,195	$ 962

Legend

(a) 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 period end, the value of these securities amounted to $143,071,000 or 5.7% of net assets.

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

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

(e) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request.

(f) Security represents right to receive monthly interest payments on an underlying pool of mortgages. Principal shown is the par amount of the mortgage pool.

Other Information

Purchases and sales of securities, other than short-term securities, aggregated $2,120,214,000 and $2,487,283,000, respectively, of which long-term U.S. government and government agency obligations aggregated $1,890,493,000 and $2,238,069,000, respectively.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

Amounts in thousands (except per-share amount)	March 31, 2004 (Unaudited)

Assets
Investment in securities, at value (including securities loaned of $18,687 and repurchase agreements of $122,357) (cost $2,750,505) - See accompanying schedule		$ 2,848,530
Commitment to sell securities on a delayed delivery basis	$ (53,063)
Receivable for securities sold on a delayed delivery basis	53,086	23
Receivable for investments sold, regular delivery		12,916
Cash		577
Receivable for fund shares sold		2,262
Interest receivable		21,394
Unrealized gain on swap agreements		962
Receivable from investment adviser for expense reductions		189
Total assets		2,886,853

Liabilities
Payable for investments purchased Regular delivery	12,794
Delayed delivery	360,486
Payable for fund shares redeemed	1,692
Distributions payable	622
Accrued management fee	1,238
Other affiliated payables	2
Collateral on securities loaned, at value	19,061
Total liabilities		395,895

Net Assets		$ 2,490,958
Net Assets consist of:
Paid in capital		$ 2,373,950
Undistributed net investment income		983
Accumulated undistributed net realized gain (loss) on investments		17,015
Net unrealized appreciation (depreciation) on investments		99,010
Net Assets, for 228,704 shares outstanding		$ 2,490,958
Net Asset Value, offering price and redemption price per share ($2,490,958 ÷ 228,704 shares)		$ 10.89

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Statement of Operations

Amounts in thousands	Six months ended March 31, 2004 (Unaudited)

Investment Income
Interest		$ 53,341
Security lending		15
Total income		53,356

Expenses
Management fee	$ 7,587
Non-interested trustees' compensation	8
Miscellaneous	1
Total expenses before reductions	7,596
Expense reductions	(1,264)	6,332
Net investment income (loss)		47,024
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities	22,959
Swap agreements	1,132
Total net realized gain (loss)		24,091
Change in net unrealized appreciation (depreciation) on: Investment securities	1,617
Swap agreements	783
Delayed delivery commitments	25
Total change in net unrealized appreciation (depreciation)		2,425
Net gain (loss)		26,516
Net increase (decrease) in net assets resulting from operations		$ 73,540

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Statement of Changes in Net Assets

Amounts in thousands	Six months ended March 31, 2004 (Unaudited)	Year ended September 30, 2003
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 47,024	$ 101,171
Net realized gain (loss)	24,091	50,945
Change in net unrealized appreciation (depreciation)	2,425	29,303
Net increase (decrease) in net assets resulting from operations	73,540	181,419
Distributions to shareholders from net investment income	(46,986)	(101,979)
Distributions to shareholders from net realized gain	(38,580)	(48,541)
Total distributions	(85,566)	(150,520)
Share transactions Net proceeds from sales of shares	398,094	1,117,122
Reinvestment of distributions	79,449	139,864
Cost of shares redeemed	(675,031)	(1,331,197)
Net increase (decrease) in net assets resulting from share transactions	(197,488)	(74,211)
Total increase (decrease) in net assets	(209,514)	(43,312)

Net Assets
Beginning of period	2,700,472	2,743,784
End of period (including undistributed net investment income of $983 and undistributed net investment income of $945, respectively)	$ 2,490,958	$ 2,700,472
Other Information Shares
Sold	36,832	103,241
Issued in reinvestment of distributions	7,369	12,989
Redeemed	(62,592)	(123,492)
Net increase (decrease)	(18,391)	(7,262)

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Highlights

	Six months ended March 31, 2004	Years ended September 30,
	(Unaudited)	2003	2002	2001	2000	1999
Selected Per-Share Data
Net asset value, beginning of period	$ 10.93	$ 10.79	$ 10.62	$ 10.00	$ 10.01	$ 10.70
Income from Invest- ment Operations
Net investment income (loss)^D	.201	.402	.521^F	.618	.640	.620
Net realized and unrealized gain (loss)	.125	.344	.218^F	.634	(.005)	(.610)
Total from investment operations	.326	.746	.739	1.252	.635	.010
Distributions from net investment income	(.201)	(.406)	(.508)	(.632)	(.645)	(.620)
Distributions from net realized gain	(.165)	(.200)	(.061)	-	-	(.022)
Distributions in excess of net realized gain	-	-	-	-	-	(.058)
Total distributions	(.366)	(.606)	(.569)	(.632)	(.645)	(.700)
Net asset value, end of period	$ 10.89	$ 10.93	$ 10.79	$ 10.62	$ 10.00	$ 10.01
Total Return^B,C	3.06%	7.13%	7.23%	12.89%	6.63%	.10%
Ratios to Average Net Assets^E
Expenses before expense reductions	.60%^A	.60%	.60%	.60%	.60%	.60%
Expenses net of voluntary waivers, if any	.50%^A	.50%	.50%	.50%	.50%	.47%
Expenses net of all reductions	.50%^A	.50%	.50%	.50%	.50%	.47%
Net investment income (loss)	3.71%^A	3.72%	4.95%^F	6.02%	6.50%	6.04%
Supplemental Data
Net assets, end of period (in millions)	$ 2,491	$ 2,700	$ 2,744	$ 2,441	$ 1,835	$ 1,638
Portfolio turnover rate	152%^A	274%	271%	223%	122%	148%

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns would have been lower had certain expenses not been reduced during the periods shown.

^D Calculated based on average shares outstanding during the period.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Notes to Financial Statements

For the period ended March 31, 2004 (Unaudited)

(Amounts in thousands except ratios)

1. Significant Accounting Policies.

Spartan Investment Grade Bond Fund (the fund) is a fund of Fidelity Charles Street Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:

Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Debt securities for which quotations are readily available are valued at their most recent bid prices (sales prices if the principal market is an exchange) in the principal market in which such securities are normally traded, as determined by recognized dealers in such securities, or securities are valued on the basis of information provided by a pricing service. Pricing services use valuation matrices that incorporate both dealer-supplied valuations and valuation models. If prices are not readily available or do not accurately reflect fair value for a security, or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, that security may be valued by another method that the Board of Trustees believes accurately reflects fair value. A security's valuation may differ depending on the method used for determining value. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.

Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities, which is accrued using the interest method.

Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

1. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders. Each year, the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date.

Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Capital accounts within the financial statements are adjusted for permanent and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due to prior period premium and discount on debt securities, market discount, financing transactions and losses deferred due to wash sales.

The federal tax cost of investments including unrealized appreciation (depreciation) as of period end was as follows:

Unrealized appreciation	$ 102,406
Unrealized depreciation	(2,375)
Net unrealized appreciation (depreciation)	$ 100,031
Cost for federal income tax purposes	$ 2,748,499

2. Operating Policies.

Semiannual Report

2. Operating Policies - continued

Delayed Delivery Transactions and When-Issued Securities - continued

sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in the fund's Schedule of Investments. The fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.

Swap Agreements. The fund may invest in swaps for the purpose of managing its exposure to interest rate, credit or market risk.

Interest rate swaps are agreements to exchange cash flows periodically based on a notional principal amount, for example, the exchange of fixed rate interest payments for floating rate interest payments. Periodic payments received or made by the fund are recorded in the accompanying Statement of Operations as realized gains or losses, respectively. The primary risk associated with interest rate swaps is that unfavorable changes in the fluctuation of interest rates could adversely impact the fund.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

2. Operating Policies - continued

Swap Agreements - continued

underlying instrument, at par, if a credit event occurs during the term of the swap. The fund may enter into credit default swaps in which the fund or its counterparty act as guarantors. By acting as the guarantor of a swap, the fund assumes the market and credit risk of the underlying instrument including liquidity and loss of value. Premiums received or made by the fund are recorded in the accompanying Statement of Operations as realized gains or losses, respectively.

Financing Transactions. To earn additional income, the fund may employ trading strategies which involve the sale and simultaneous agreement to repurchase similar securities ("mortgage dollar rolls") or the purchase and simultaneous agreement to sell similar securities ("reverse mortgage dollar rolls"). The securities traded are mortgage securities and bear the same interest rate but will be collateralized by different pools of mortgages. During the period between the sale and repurchase in a mortgage dollar roll transaction, a fund will not be entitled to receive interest and principal payments on the securities sold but will invest the proceeds of the sale in other securities which may enhance the yield and total return. In addition, the difference between the sale price and the future purchase price is recorded as an adjustment to investment income. During the period between the purchase and subsequent sale in a reverse mortgage dollar roll transaction a fund is entitled to interest and principal payments on the securities purchased. The price differential between the purchase and sale is recorded as an adjustment to investment income. Losses may arise due to changes in the value of the securities or if the counterparty does not perform under the terms of the agreement. If the counterparty files for bankruptcy or becomes insolvent, the fund's right to repurchase or sell securities may be limited.

3. Purchases and Sales of Investments.

Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.

Semiannual Report

4. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee that is based on an annual rate of .60% of the fund's average net assets. FMR pays all other expenses, except the compensation of the non-interested Trustees and certain exceptions such as interest expense. The management fee paid to FMR by the fund is reduced by an amount equal to the fees and expenses paid by the fund to the non-interested Trustees.

5. Committed Line of Credit.

6. Security Lending.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

7. Expense Reductions.

FMR agreed to reimburse the fund to the extent operating expenses exceeded .50% of average net assets. Some expenses, for example interest expense, are excluded from this reimbursement. During the period, this reimbursement reduced the fund's expenses by $1,262.

In addition, through arrangements with the fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. During the period, these credits reduced the fund's expenses by $2.

Semiannual Report

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Semiannual Report

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Semiannual Report

March 31, 2004

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Chairman's Message	<Click Here>	Ned Johnson's message to shareholders.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.

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Dear Shareholder:

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/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Semiannual Report

Investment Changes

Top Ten Stocks as of March 31, 2004
	% of fund's net assets	% of fund's net assets 6 months ago
Cardinal Health, Inc.	4.6	4.6
American International Group, Inc.	4.0	3.9
Clear Channel Communications, Inc.	3.4	3.5
Microsoft Corp.	3.1	2.3
Home Depot, Inc.	2.9	2.8
Citigroup, Inc.	2.8	3.1
Fannie Mae	2.8	3.4
Pfizer, Inc.	2.7	0.7
General Electric Co.	2.2	3.0
SBC Communications, Inc.	2.2	1.0
	30.7
Market Sectors as of March 31, 2004
(stocks only)	% of fund's net assets	% of fund's net assets 6 months ago
Financials	18.4	16.8
Health Care	14.1	15.2
Consumer Discretionary	9.0	8.8
Information Technology	8.5	7.2
Consumer Staples	6.8	6.7
Telecommunication Services	5.2	2.5
Industrials	4.5	5.2
Energy	4.0	5.2
Materials	0.9	0.6
Utilities	0.8	0.7

Asset Allocation (% of fund's net assets)

As of March 31, 2004*			As of September 30, 2003 **
	Stock class and Equity Futures 76.1%			Stock class and Equity Futures 72.8%
	Bond class 17.4%			Bond class 21.1%
	Short-term class 6.5%			Short-term class 6.1%
* Foreign investments		10.8%	** Foreign investments		4.0%

The information in the above tables is based on the combined investments of the fund and its pro-rata share of the investments of Fidelity's fixed-income central fund.

Semiannual Report

Investments March 31, 2004 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 72.0%
	Shares		Value (Note 1) (000s)
CONSUMER DISCRETIONARY - 8.8%
Hotels, Restaurants & Leisure - 0.3%
McDonald's Corp.	367,100		$ 10,488
Household Durables - 0.3%
LG Electronics, Inc.	140,220		8,428
Techtronic Industries Co.	562,000		1,825
			10,253
Media - 4.8%
Clear Channel Communications, Inc.	2,997,709		126,953
McGraw-Hill Companies, Inc.	84,700		6,449
News Corp. Ltd. sponsored ADR	394,700		12,516
NRJ Group	120,280		2,563
SKY Perfect Communications, Inc. (a)	702		1,057
Time Warner, Inc. (a)	1,601,250		26,997
Tv Asahi Corp.	2,632		5,427
			181,962
Multiline Retail - 0.0%
Barneys, Inc. warrants 4/1/08 (a)	710		18
Specialty Retail - 3.1%
Home Depot, Inc.	2,927,600		109,375
Limited Brands, Inc.	209,610		4,192
Office Depot, Inc. (a)	60,100		1,131
Staples, Inc.	152,600		3,875
			118,573
Textiles Apparel & Luxury Goods - 0.3%
Adidas-Salomon AG	32,300		3,766
Arena Brands Holding Corp. Class B (l)	5,556		84
The Swatch Group AG (Reg.)	321,320		8,420
			12,270
TOTAL CONSUMER DISCRETIONARY			333,564
CONSUMER STAPLES - 6.8%
Beverages - 1.4%
PepsiCo, Inc.	370,505		19,952
Pernod-Ricard	40,600		4,951
The Coca-Cola Co.	568,350		28,588
			53,491
Food & Staples Retailing - 2.4%
CVS Corp.	1,266,900		44,722
Common Stocks - continued
	Shares		Value (Note 1) (000s)
CONSUMER STAPLES - continued
Food & Staples Retailing - continued
Safeway, Inc. (a)	984,600		$ 20,263
Wal-Mart Stores, Inc.	444,200		26,514
			91,499
Food Products - 0.8%
Barry Callebaut AG	10,890		2,531
Kraft Foods, Inc. Class A	65,900		2,109
People's Food Holdings Ltd.	2,133,000		1,898
Unilever NV (NY Shares)	258,700		17,964
Unilever PLC	645,800		6,506
			31,008
Household Products - 0.4%
Kimberly-Clark Corp.	36,500		2,303
Procter & Gamble Co.	120,500		12,638
			14,941
Personal Products - 0.7%
Alberto-Culver Co.	573,755		25,171
Estee Lauder Companies, Inc. Class A	39,800		1,765
			26,936
Tobacco - 1.1%
Altadis SA (Spain)	96,700		2,936
Altria Group, Inc.	657,980		35,827
			38,763
TOTAL CONSUMER STAPLES			256,638
ENERGY - 4.0%
Energy Equipment & Services - 2.2%
BJ Services Co. (a)	22,230		962
Diamond Offshore Drilling, Inc.	692,000		16,739
ENSCO International, Inc.	540,000		15,212
GlobalSantaFe Corp.	752,073		20,885
Grant Prideco, Inc. (a)	117,200		1,817
Nabors Industries Ltd. (a)	102,900		4,708
Precision Drilling Corp. (a)	112,300		5,251
Transocean, Inc. (a)	663,700		18,511
			84,085
Oil & Gas - 1.8%
ChevronTexaco Corp.	247,500		21,726
Common Stocks - continued
	Shares		Value (Note 1) (000s)
ENERGY - continued
Oil & Gas - continued
ConocoPhillips	439,621		$ 30,690
EnCana Corp.	147,800		6,391
Exxon Mobil Corp.	226,080		9,403
			68,210
TOTAL ENERGY			152,295
FINANCIALS - 18.4%
Capital Markets - 2.6%
Collins Stewart Tullett PLC	328,300		2,727
Man Group PLC	134,800		4,352
Merrill Lynch & Co., Inc.	434,300		25,867
Morgan Stanley	934,500		53,547
Nikko Cordial Corp.	993,000		6,571
UBS AG (Reg.)	77,350		5,762
			98,826
Commercial Banks - 3.3%
Banco Popular Espanol SA (Reg.)	60,000		3,520
Bank of America Corp.	341,000		27,614
Bank One Corp.	694,400		37,859
FleetBoston Financial Corp.	553,800		24,866
HSBC Holdings PLC (United Kingdom) (Reg.)	332,400		4,973
Sumitomo Mitsui Financial Group, Inc.	1,365		10,080
Synovus Financial Corp.	248,800		6,083
UFJ Holdings, Inc. (a)	1,526		9,688
			124,683
Consumer Finance - 0.2%
Aeon Credit Service Ltd.	37,400		2,331
MBNA Corp.	140,200		3,874
			6,205
Diversified Financial Services - 2.8%
Citigroup, Inc.	2,049,233		105,945
Insurance - 6.2%
AFLAC, Inc.	75,800		3,043
Allianz AG (Reg.)	30,800		3,363
Allmerica Financial Corp. (a)	149,400		5,162
AMBAC Financial Group, Inc.	121,600		8,972
American International Group, Inc.	2,121,600		151,376
Hartford Financial Services Group, Inc.	378,600		24,117
Common Stocks - continued
	Shares		Value (Note 1) (000s)
FINANCIALS - continued
Insurance - continued
MBIA, Inc.	157,400		$ 9,869
MetLife, Inc.	513,700		18,329
PartnerRe Ltd.	60,000		3,387
St. Paul Companies, Inc.	75,700		3,029
Travelers Property Casualty Corp. Class B	151,300		2,613
			233,260
Thrifts & Mortgage Finance - 3.3%
Fannie Mae	1,408,380		104,713
Greenpoint Financial Corp.	80,600		3,523
MGIC Investment Corp.	215,000		13,809
New York Community Bancorp, Inc.	80,533		2,761
			124,806
TOTAL FINANCIALS			693,725
HEALTH CARE - 14.1%
Biotechnology - 0.2%
Actelion Ltd. (Reg.) (a)	160		17
Angiotech Pharmaceuticals, Inc. (a)	56,600		1,381
Celltech Group PLC (a)	57,600		495
CSL Ltd.	281,300		4,525
			6,418
Health Care Equipment & Supplies - 0.9%
Baxter International, Inc.	1,024,300		31,641
Smith & Nephew PLC	384,700		3,889
			35,530
Health Care Providers & Services - 4.7%
Cardinal Health, Inc.	2,533,520		174,557
Fresenius Medical Care AG	15,200		1,005
Henry Schein, Inc. (a)	46,100		3,292
			178,854
Pharmaceuticals - 8.3%
Altana AG	36,200		2,245
AstraZeneca PLC (United Kingdom)	68,400		3,196
Johnson & Johnson	1,175,200		59,606
Merck & Co., Inc.	983,980		43,482
Novartis AG (Reg.)	74,120		3,158
Novo Nordisk AS Series B	39,400		1,832
Common Stocks - continued
	Shares		Value (Note 1) (000s)
HEALTH CARE - continued
Pharmaceuticals - continued
Pfizer, Inc.	2,952,300		$ 103,478
Recordati Spa	66,314		1,157
Roche Holding AG (participation certificate)	80,580		7,882
Schering-Plough Corp.	773,080		12,539
Shire Pharmaceuticals Group PLC (a)	272,100		2,669
Wyeth	1,904,900		71,529
			312,773
TOTAL HEALTH CARE			533,575
INDUSTRIALS - 4.5%
Aerospace & Defense - 0.3%
United Technologies Corp.	111,300		9,605
Building Products - 0.1%
Asahi Glass Co. Ltd.	280,000		3,018
Commercial Services & Supplies - 0.4%
Adecco SA	26,090		1,444
Aramark Corp. Class B	108,500		2,974
Capita Group PLC	238,600		1,374
ChoicePoint, Inc. (a)	220,578		8,389
			14,181
Electrical Equipment - 0.0%
Furukawa Electric Co. Ltd.	365,000		1,418
Industrial Conglomerates - 3.1%
General Electric Co.	2,728,740		83,281
Tyco International Ltd.	1,231,600		35,285
			118,566
Machinery - 0.4%
Ingersoll-Rand Co. Ltd. Class A	224,000		15,154
Road & Rail - 0.2%
CSX Corp.	122,800		3,720
Union Pacific Corp.	32,400		1,938
			5,658
TOTAL INDUSTRIALS			167,600
INFORMATION TECHNOLOGY - 8.5%
Communications Equipment - 1.0%
Cisco Systems, Inc. (a)	728,900		17,144
Common Stocks - continued
	Shares		Value (Note 1) (000s)
INFORMATION TECHNOLOGY - continued
Communications Equipment - continued
Comverse Technology, Inc. (a)	360,700		$ 6,543
Motorola, Inc.	699,800		12,316
Telefonaktiebolaget LM Ericsson (B Shares) (a)	1,101,200		3,056
			39,059
Computers & Peripherals - 1.4%
Dell, Inc. (a)	758,400		25,497
Diebold, Inc.	57,600		2,772
Hewlett-Packard Co.	868,700		19,841
Sun Microsystems, Inc. (a)	1,331,700		5,540
			53,650
Electronic Equipment & Instruments - 0.8%
Flextronics International Ltd. (a)	382,200		6,581
Jabil Circuit, Inc. (a)	185,100		5,447
Sanmina-SCI Corp. (a)	404,700		4,456
Solectron Corp. (a)	1,388,600		7,679
Thermo Electron Corp. (a)	121,200		3,428
Yageo Corp. (a)	3,548,000		1,927
			29,518
IT Services - 0.7%
Affiliated Computer Services, Inc. Class A (a)	162,900		8,455
First Data Corp.	396,900		16,733
			25,188
Office Electronics - 0.1%
Konica Minolta Holdings, Inc.	216,500		3,090
Semiconductors & Semiconductor Equipment - 1.0%
Intel Corp.	379,040		10,310
KLA-Tencor Corp. (a)	24,000		1,208
Lam Research Corp. (a)	120,175		3,030
Linear Technology Corp.	34,800		1,288
MediaTek, Inc.	145,000		1,492
Novellus Systems, Inc. (a)	26,200		833
Samsung Electronics Co. Ltd.	7,160		3,583
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR (a)	420,912		4,394
United Microelectronics Corp. (a)	7,016,000		6,303
United Microelectronics Corp. sponsored ADR (a)	840,201		4,369
Xilinx, Inc. (a)	23,700		901
			37,711
Common Stocks - continued
	Shares		Value (Note 1) (000s)
INFORMATION TECHNOLOGY - continued
Software - 3.5%
Business Objects SA (a)	114,500		$ 3,263
Dassault Systemes SA	88,100		3,668
Microsoft Corp.	4,690,308		117,117
VERITAS Software Corp. (a)	268,800		7,233
			131,281
TOTAL INFORMATION TECHNOLOGY			319,497
MATERIALS - 0.9%
Chemicals - 0.4%
Dow Chemical Co.	270,500		10,896
Nitto Denko Corp.	60,800		3,335
			14,231
Metals & Mining - 0.2%
Alcan, Inc.	165,300		7,349
Alcoa, Inc.	34,500		1,197
			8,546
Paper & Forest Products - 0.3%
Aracruz Celulose SA sponsored ADR	192,600		7,367
Bowater, Inc.	46,300		2,020
International Paper Co.	34,900		1,475
Votorantim Celulose e Papel SA sponsored ADR	38,200		1,329
			12,191
TOTAL MATERIALS			34,968
TELECOMMUNICATION SERVICES - 5.2%
Diversified Telecommunication Services - 4.5%
BellSouth Corp.	744,700		20,621
China Telecom Corp. Ltd. (H Shares) (a)	9,896,000		3,433
Qwest Communications International, Inc. (a)	3,794,000		16,352
SBC Communications, Inc.	3,357,800		82,400
Verizon Communications, Inc.	1,246,000		45,529
Versatel Telecom International NV (a)	1,700,000		4,000
			172,335
Wireless Telecommunication Services - 0.7%
KDDI Corp.	1,211		6,817
Common Stocks - continued
	Shares		Value (Note 1) (000s)
TELECOMMUNICATION SERVICES - continued
Wireless Telecommunication Services - continued
Nextel Communications, Inc. Class A (a)	428,600		$ 10,599
Vodafone Group PLC	3,241,400		7,747
			25,163
TOTAL TELECOMMUNICATION SERVICES			197,498
UTILITIES - 0.8%
Electric Utilities - 0.6%
FirstEnergy Corp.	295,000		11,529
PG&E Corp. (a)	270,800		7,845
TXU Corp.	138,400		3,967
			23,341
Gas Utilities - 0.2%
Centrica PLC	577,400		2,433
NiSource, Inc.	110,200		2,342
			4,775
Multi-Utilities & Unregulated Power - 0.0%
Public Service Enterprise Group, Inc.	13,400		630
TOTAL UTILITIES			28,746
TOTAL COMMON STOCKS (Cost $2,656,324)		2,718,106
Nonconvertible Preferred Stocks - 0.2%

CONSUMER DISCRETIONARY - 0.2%
Media - 0.2%
CSC Holdings, Inc.:
(depositary shares) Series M, 11.125%	20,695		2,157
Series H, 11.75%	23,500		2,453
Granite Broadcasting Corp. 12.75% pay-in-kind	1,960		960
			5,570
FINANCIALS - 0.0%
Commercial Banks - 0.0%
Chevy Chase Bank FSB Series C, 8.00%	16,985		484
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $6,279)		6,054

Corporate Bonds - 13.1%
	Principal Amount (000s)		Value (Note 1) (000s)
Convertible Bonds - 0.5%
CONSUMER DISCRETIONARY - 0.1%
Specialty Retail - 0.1%
Gap, Inc. 5.75% 3/15/09 (e)	$ 1,930		$ 2,802
HEALTH CARE - 0.0%
Health Care Providers & Services - 0.0%
Service Corp. International (SCI) 6.75% 6/22/08	1,170		1,329
INDUSTRIALS - 0.3%
Industrial Conglomerates - 0.3%
Tyco International Group SA 3.125% 1/15/23	7,880		11,487
INFORMATION TECHNOLOGY - 0.1%
Communications Equipment - 0.1%
Brocade Communications Systems, Inc. 2% 1/1/07	380		352
CIENA Corp. 3.75% 2/1/08	1,280		1,165
			1,517
Semiconductors & Semiconductor Equipment - 0.0%
Amkor Technology, Inc. 5% 3/15/07	740		714
TOTAL INFORMATION TECHNOLOGY			2,231
TOTAL CONVERTIBLE BONDS			17,849
Nonconvertible Bonds - 12.6%
CONSUMER DISCRETIONARY - 2.7%
Auto Components - 0.1%
DaimlerChrysler NA Holding Corp.:
4.05% 6/4/08	155		157
4.75% 1/15/08	795		829
7.2% 9/1/09	250		285
Dana Corp. 6.5% 3/1/09	390		415
Stoneridge, Inc. 11.5% 5/1/12	1,230		1,464
United Components, Inc. 9.375% 6/15/13	380		410
Visteon Corp. 7% 3/10/14	720		713
			4,273
Automobiles - 0.0%
General Motors Corp. 8.25% 7/15/23	715		798
Hotels, Restaurants & Leisure - 0.8%
Argosy Gaming Co. 7% 1/15/14 (e)	1,660		1,731
Bally Total Fitness Holding Corp.:
9.875% 10/15/07	545		444
10.5% 7/15/11	355		331
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
CONSUMER DISCRETIONARY - continued
Hotels, Restaurants & Leisure - continued
Boyd Gaming Corp.:
7.75% 12/15/12	$ 955		$ 1,024
8.75% 4/15/12	705		776
Chumash Casino & Resort Enterprise 9% 7/15/10 (e)	1,190		1,315
Circus Circus Enterprises, Inc. 7.625% 7/15/13	430		469
Friendly Ice Cream Corp. 8.375% 6/15/12 (e)	890		912
Host Marriott LP 7.125% 11/1/13	2,120		2,194
ITT Corp. 7.375% 11/15/15	755		815
Mandalay Resort Group 9.375% 2/15/10	430		512
MGM MIRAGE:
5.875% 2/27/14	650		649
5.875% 2/27/14 (e)	1,030		1,029
Mohegan Tribal Gaming Authority 8.375% 7/1/11	530		587
MTR Gaming Group, Inc. 9.75% 4/1/10	720		770
Park Place Entertainment Corp. 7.875% 3/15/10	2,295		2,559
Royal Caribbean Cruises Ltd. 6.875% 12/1/13	2,070		2,163
Six Flags, Inc.:
8.875% 2/1/10	1,050		1,082
9.75% 4/15/13	1,480		1,565
Station Casinos, Inc.:
6% 4/1/12 (e)	1,460		1,500
6.5% 2/1/14 (e)	1,430		1,437
Sun International Hotels Ltd./Sun International North America, Inc. 8.875% 8/15/11	2,495		2,757
Town Sports International Holdings, Inc. 0% 2/1/14 (d)(e)	700		375
Town Sports International, Inc. 9.625% 4/15/11	1,230		1,298
Venetian Casino Resort LLC/Las Vegas Sands, Inc. 11% 6/15/10	1,370		1,572
			29,866
Household Durables - 0.5%
Beazer Homes USA, Inc. 6.5% 11/15/13 (e)	2,305		2,420
D.R. Horton, Inc. 6.875% 5/1/13	370		409
Juno Lighting, Inc. 11.875% 7/1/09	1,985		2,129
K. Hovnanian Enterprises, Inc.:
6.5% 1/15/14	270		276
7.75% 5/15/13	870		935
8.875% 4/1/12	2,760		3,105
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
CONSUMER DISCRETIONARY - continued
Household Durables - continued
KB Home 7.75% 2/1/10	$ 1,400		$ 1,512
Sealy Mattress Co. 8.25% 6/15/14 (e)	1,200		1,200
Standard Pacific Corp.:
5.125% 4/1/09	740		738
6.875% 5/15/11	1,035		1,097
7.75% 3/15/13	85		94
9.25% 4/15/12	925		1,082
Technical Olympic USA, Inc. 7.5% 3/15/11 (e)	750		750
WCI Communities, Inc. 7.875% 10/1/13	760		813
William Lyon Homes, Inc.:
7.5% 2/15/14 (e)	700		725
10.75% 4/1/13	2,120		2,507
			19,792
Leisure Equipment & Products - 0.1%
The Hockey Co. 11.25% 4/15/09	3,280		3,674
Media - 0.7%
AMC Entertainment, Inc.:
8% 3/1/14 (e)	860		854
9.5% 2/1/11	882		924
AOL Time Warner, Inc. 7.625% 4/15/31	410		480
British Sky Broadcasting Group PLC (BSkyB) yankee 8.2% 7/15/09	500		603
Cablevision Systems Corp.:
5.66% 4/1/09 (e)(i)	1,440		1,440
8% 4/15/12 (e)	1,520		1,520
Cinemark, Inc. 0% 3/15/14 (d)(e)	1,760		1,098
Clear Channel Communications, Inc. 4.4% 5/15/11	200		200
Comcast Corp. 7.05% 3/15/33	300		333
Continental Cablevision, Inc. 9% 9/1/08	900		1,094
Corus Entertainment, Inc. 8.75% 3/1/12	980		1,078
CSC Holdings, Inc. 7.875% 2/15/18	500		536
EchoStar DBS Corp. 5.75% 10/1/08 (e)	1,865		1,921
Granite Broadcasting Corp. 9.75% 12/1/10 (e)	660		640
Gray Television, Inc. 9.25% 12/15/11	1,000		1,110
Houghton Mifflin Co.:
0% 10/15/13 (d)(e)	370		202
8.25% 2/1/11	865		887
9.875% 2/1/13	800		824
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
CONSUMER DISCRETIONARY - continued
Media - continued
Innova S. de R.L. 9.375% 9/19/13	$ 1,060		$ 1,155
LBI Media, Inc. 10.125% 7/15/12	1,205		1,377
Liberty Media Corp. 5.7% 5/15/13	200		209
News America Holdings, Inc. 7.7% 10/30/25	650		782
PEI Holdings, Inc. 11% 3/15/10	960		1,109
Reader's Digest Association, Inc. 6.5% 3/1/11 (e)	1,130		1,164
Sinclair Broadcast Group, Inc. 8% 3/15/12	1,525		1,653
Spanish Broadcasting System, Inc. 9.625% 11/1/09	400		423
Telewest PLC 11% 10/1/07 (c)	1,840		1,159
TV Azteca SA de CV yankee 10.5% 2/15/07	595		613
Videotron LTEE 6.875% 1/15/14	420		437
			25,825
Multiline Retail - 0.0%
Barneys, Inc. 9% 4/1/08	710		731
Specialty Retail - 0.4%
Asbury Automotive Group, Inc.:
8% 3/15/14 (e)	880		880
9% 6/15/12	1,320		1,399
AutoNation, Inc. 9% 8/1/08	950		1,107
J. Crew Intermediate LLC 0% 5/15/08 (d)	1,397		1,076
NBC Acquisition Corp. 0% 3/15/13 (d)(e)	1,730		1,133
Nebraska Book Co., Inc. 8.625% 3/15/12 (e)	1,200		1,236
Sonic Automotive, Inc. 8.625% 8/15/13	1,225		1,326
Toys 'R' US, Inc. 7.875% 4/15/13	1,825		1,912
United Rentals North America, Inc.:
6.5% 2/15/12 (e)	365		361
7% 2/15/14 (e)	475		447
7.75% 11/15/13 (e)	2,710		2,629
			13,506
Textiles Apparel & Luxury Goods - 0.1%
Levi Strauss & Co.:
7% 11/1/06	470		350
11.625% 1/15/08	550		421
12.25% 12/15/12	355		268
			1,039
TOTAL CONSUMER DISCRETIONARY			99,504
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
CONSUMER STAPLES - 0.4%
Food & Staples Retailing - 0.1%
Rite Aid Corp.:
6% 12/15/05 (e)	$ 1,475		$ 1,460
6.875% 8/15/13	1,435		1,313
9.25% 6/1/13	380		401
9.5% 2/15/11	1,085		1,215
Safeway, Inc. 6.5% 3/1/11	500		558
			4,947
Food Products - 0.3%
Del Monte Corp. 9.25% 5/15/11	4,895		5,446
Doane Pet Care Co. 9.75% 5/15/07	1,990		1,731
Dole Food Co., Inc. 7.25% 6/15/10	1,185		1,209
Kraft Foods, Inc. 5.25% 6/1/07	250		270
Smithfield Foods, Inc.:
7.625% 2/15/08	410		439
7.75% 5/15/13	340		372
8% 10/15/09	165		182
United Agriculture Products, Inc. 8.25% 12/15/11 (e)	610		637
			10,286
Tobacco - 0.0%
Altria Group, Inc. 7% 11/4/13	345		380
Philip Morris Companies, Inc.:
7% 7/15/05	355		374
7.75% 1/15/27	200		223
			977
TOTAL CONSUMER STAPLES			16,210
ENERGY - 0.9%
Energy Equipment & Services - 0.2%
Grant Prideco, Inc. 9% 12/15/09	400		450
Hanover Compressor Co.:
0% 3/31/07	1,585		1,213
8.625% 12/15/10	340		366
Key Energy Services, Inc. 8.375% 3/1/08	2,750		2,901
SESI LLC 8.875% 5/15/11	1,630		1,793
Weatherford International Ltd. 4.95% 10/15/13	200		203
			6,926
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
ENERGY - continued
Oil & Gas - 0.7%
Amerada Hess Corp.:
6.65% 8/15/11	$ 55		$ 61
7.125% 3/15/33	135		142
7.375% 10/1/09	120		137
Chesapeake Energy Corp.:
7.5% 9/15/13	1,550		1,701
8.375% 11/1/08	1,295		1,425
9% 8/15/12	780		901
El Paso Production Holding Co. 7.75% 6/1/13	1,440		1,339
Empresa Nacional de Petroleo 6.75% 11/15/12 (e)	325		368
General Maritime Corp. 10% 3/15/13	2,635		2,951
Overseas Shipholding Group, Inc.:
7.5% 2/15/24	290		294
8.25% 3/15/13	2,610		2,871
Pecom Energia SA 9% 5/1/09 (Reg. S)	905		955
Petrobras International Finance Co. Ltd. 8.375% 12/10/18	905		915
Plains Exploration & Production Co. LP:
Series B, 8.75% 7/1/12	635		711
8.75% 7/1/12	910		1,019
Range Resources Corp. 7.375% 7/15/13	1,085		1,128
Teekay Shipping Corp. 8.875% 7/15/11	3,150		3,654
The Coastal Corp.:
6.375% 2/1/09	875		722
6.5% 5/15/06	470		433
6.5% 6/1/08	385		324
7.5% 8/15/06	1,315		1,223
7.75% 6/15/10	1,695		1,466
7.75% 10/15/35	155		120
9.625% 5/15/12	405		381
Western Oil Sands, Inc. 8.375% 5/1/12	1,620		1,916
			27,157
TOTAL ENERGY			34,083
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
FINANCIALS - 2.2%
Capital Markets - 0.0%
Bank of New York Co., Inc.:
3.4% 3/15/13 (i)	$ 295		$ 294
4.25% 9/4/12 (i)	290		299
Morgan Stanley 4.75% 4/1/14	1,000		974
			1,567
Commercial Banks - 0.1%
Bank of America Corp. 7.4% 1/15/11	100		120
Chevy Chase Bank FSB 6.875% 12/1/13	670		693
Export-Import Bank of Korea:
4.125% 2/10/09 (e)	100		102
5.25% 2/10/14 (e)	400		414
Korea Development Bank 3.875% 3/2/09	500		504
Wachovia Corp. 3.625% 2/17/09	400		407
			2,240
Consumer Finance - 0.1%
Capital One Bank:
4.875% 5/15/08	200		211
6.5% 6/13/13	325		354
6.875% 2/1/06	105		113
Ford Motor Credit Co. 7.375% 10/28/09	465		510
General Motors Acceptance Corp. 7.75% 1/19/10	1,070		1,213
Household Finance Corp.:
5.875% 2/1/09	55		61
6.375% 10/15/11	600		680
6.375% 11/27/12	310		351
6.75% 5/15/11	100		116
Household International, Inc. 8.875% 2/15/08	350		391
MBNA Corp. 6.25% 1/17/07	165		181
			4,181
Diversified Financial Services - 1.7%
Ahold Finance USA, Inc.:
6.25% 5/1/09	1,110		1,132
8.25% 7/15/10	1,645		1,810
American Airlines, Inc. pass thru trust certificates:
6.817% 5/23/11	2,085		1,908
6.977% 11/23/22	149		135
7.324% 4/15/11	375		326
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
FINANCIALS - continued
Diversified Financial Services - continued
American Airlines, Inc. pass thru trust certificates: - continued
7.377% 5/23/19	$ 1,715		$ 1,303
7.379% 5/23/16	1,210		920
7.8% 4/1/08	920		860
8.608% 10/1/12	260		244
Cadbury Schweppes U.S. Finance LLC 3.875% 10/1/08 (e)	240		244
Cellu Tissue Holdings, Inc. 9.75% 3/15/10 (e)	640		634
Charter Communications Holding II LLC/Charter Communications Holdings II Capital Corp. 10.25% 9/15/10 (e)	375		388
Charter Communications Holdings LLC/Charter Communications Holdings Capital Corp. 8.625% 4/1/09	575		479
Citigroup, Inc. 7.25% 10/1/10	100		119
Continental Airlines, Inc. pass thru trust certificates:
6.748% 9/15/18	101		86
6.795% 8/2/18	331		285
6.9% 1/2/17	679		570
6.954% 2/2/11	152		129
7.461% 4/1/13	282		242
7.73% 9/15/12	253		205
7.82% 4/15/15	324		275
8.307% 4/2/18	1,456		1,310
8.321% 11/1/06	550		517
Dana Credit Corp. 8.375% 8/15/07 (e)	110		121
Delta Air Lines, Inc. pass thru trust certificates:
7.299% 9/18/06	360		302
7.57% 11/18/10	605		602
7.779% 1/2/12	568		431
Deutsche Telekom International Finance BV:
8.5% 6/15/10	400		491
8.75% 6/15/30	400		524
Dex Media West LLC/Dex Media West Finance Co.:
8.5% 8/15/10 (e)	570		627
9.875% 8/15/13 (e)	670		744
FIMEP SA 10.5% 2/15/13	1,510		1,755
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
FINANCIALS - continued
Diversified Financial Services - continued
Gerdau AmeriSteel Corp./GUSAP Partners 10.375% 7/15/11	$ 1,650		$ 1,873
Goldman Sachs Capital I 6.345% 2/15/34	200		206
Hilcorp Energy I LP/Hilcorp Finance Co. 10.5% 9/1/10 (e)	1,405		1,560
IOS Capital LLC 7.25% 6/30/08	880		966
Ispat Inland ULC 9.75% 4/1/14 (e)	1,930		1,998
Jostens Holding Corp. 0% 12/1/13 (d)	955		640
Leucadia National Corp.:
7% 8/15/13	1,380		1,428
7% 8/15/13 (e)	580		600
Level 3 Financing, Inc. 10.75% 10/15/11 (e)	1,030		999
Midland Funding Corp. II 11.75% 7/23/05	894		943
Mizuho Financial Group Cayman Ltd. 5.79% 4/15/14 (e)	500		513
Mobile Telesystems Finance SA 8.375% 10/14/10 (e)	170		177
MSW Energy Holding LLC/MSW Energy Finance Co., Inc. 8.5% 9/1/10	240		264
MSW Energy Holdings II LLC/MSW Finance Co. II, Inc. 7.375% 9/1/10 (e)	850		901
National Beef Packing Co. LLC/National Beef Finance Corp. 10.5% 8/1/11 (e)	815		839
Nexstar Finance, Inc. 7% 1/15/14 (e)	510		504
NiSource Finance Corp. 7.875% 11/15/10	185		224
Northern Telecom Capital Corp.:
7.4% 6/15/06	370		387
7.875% 6/15/26	375		390
Northwest Airlines, Inc. pass thru trust certificates:
7.068% 7/2/17	413		359
7.67% 1/2/15	241		212
Pemex Project Funding Master Trust 7.375% 12/15/14	610		679
Petronas Capital Ltd. 7.875% 5/22/22 (e)	600		722
Prime Property Funding II 6.25% 5/15/07	370		409
Qwest Capital Funding, Inc.:
7% 8/3/09	1,925		1,694
7.25% 2/15/11	1,855		1,595
7.75% 8/15/06	5,820		5,849
Rabobank Capital Funding Trust II 5.26% 12/31/49 (e)(i)	325		337
Sensus Metering Systems, Inc. 8.625% 12/15/13 (e)	825		813
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
FINANCIALS - continued
Diversified Financial Services - continued
Ship Finance International Ltd. 8.5% 12/15/13 (e)	$ 3,900		$ 3,851
Sprint Capital Corp.:
6.125% 11/15/08	175		193
6.875% 11/15/28	425		441
Telecom Italia Capital:
4% 11/15/08 (e)	170		174
5.25% 11/15/13 (e)	170		175
TIG Capital Trust I 8.597% 1/15/27 (e)	525		457
TRW Automotive Acquisition Corp.:
9.375% 2/15/13	232		267
11% 2/15/13	117		139
U.S. West Capital Funding, Inc. 6.375% 7/15/08	2,000		1,780
Universal City Development Partners Ltd./UCDP Finance, Inc. 11.75% 4/1/10	2,005		2,326
Verizon Global Funding Corp. 7.25% 12/1/10	650		766
Western Financial Bank 9.625% 5/15/12	2,480		2,827
WH Holdings Ltd./WH Capital Corp. 9.5% 4/1/11 (e)	320		334
Xerox Capital Trust I 8% 2/1/27	1,585		1,561
			63,090
Insurance - 0.1%
Crum & Forster Holdings Corp. 10.375% 6/15/13 (e)	1,630		1,834
Oil Insurance Ltd. 5.15% 8/15/33 (e)(i)	275		286
Principal Life Global Funding I:
5.125% 6/28/07 (e)	800		860
6.25% 2/15/12 (e)	360		408
			3,388
Real Estate - 0.2%
CarrAmerica Realty Corp. 5.25% 11/30/07	275		296
CenterPoint Properties Trust:
4.75% 8/1/10	250		259
6.75% 4/1/05	530		552
EOP Operating LP 7.75% 11/15/07	750		873
Gables Realty LP 5.75% 7/15/07	200		217
iStar Financial, Inc. 6.5% 12/15/13	880		926
LNR Property Corp.:
7.25% 10/15/13 (e)	1,235		1,291
7.625% 7/15/13	590		631
Mack-Cali Realty LP 7.25% 3/15/09	250		290
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
FINANCIALS - continued
Real Estate - continued
Omega Healthcare Investors, Inc. 7% 4/1/14 (e)	$ 980		$ 1,005
Senior Housing Properties Trust:
7.875% 4/15/15	780		842
8.625% 1/15/12	1,400		1,589
			8,771
Thrifts & Mortgage Finance - 0.0%
Countrywide Home Loans, Inc. 4% 3/22/11	200		198
Independence Community Bank Corp. 3.75% 4/1/14 (i)	130		129
Washington Mutual, Inc. 4.625% 4/1/14	400		392
			719
TOTAL FINANCIALS			83,956
HEALTH CARE - 0.3%
Health Care Equipment & Supplies - 0.0%
Fisher Scientific International, Inc. 8% 9/1/13	890		992
Health Care Providers & Services - 0.2%
AmeriPath, Inc.:
10.5% 4/1/13	520		530
10.5% 4/1/13 (e)	960		979
Concentra Operating Corp. 9.5% 8/15/10	550		613
Genesis HealthCare Corp. 8% 10/15/13 (e)	1,070		1,132
Mariner Health Care, Inc. 8.25% 12/15/13 (e)	775		791
PacifiCare Health Systems, Inc. 10.75% 6/1/09	1,513		1,770
Psychiatric Solutions, Inc. 10.625% 6/15/13	800		914
Tenet Healthcare Corp. 7.375% 2/1/13	1,770		1,589
			8,318
Pharmaceuticals - 0.1%
Biovail Corp. yankee 7.875% 4/1/10	1,025		994
TOTAL HEALTH CARE			10,304
INDUSTRIALS - 1.1%
Aerospace & Defense - 0.1%
BE Aerospace, Inc.:
8% 3/1/08	1,570		1,413
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
INDUSTRIALS - continued
Aerospace & Defense - continued
BE Aerospace, Inc.: - continued
9.5% 11/1/08	$ 750		$ 720
Orbital Sciences Corp. 9% 7/15/11	745		818
			2,951
Airlines - 0.1%
AMR Corp. 9% 8/1/12	1,655		1,407
Continental Airlines, Inc.:
7.875% 7/2/18	1,330		1,320
8% 12/15/05	20		19
Delta Air Lines, Inc.:
equipment trust certificates 8.54% 1/2/07	251		216
7.9% 12/15/09	1,320		878
10% 8/15/08 (e)	660		474
10.14% 8/14/12	280		190
			4,504
Building Products - 0.1%
FastenTech, Inc. 11.5% 5/1/11 (e)	1,110		1,238
Jacuzzi Brands, Inc. 9.625% 7/1/10	985		1,088
Nortek Holdings, Inc. 0% 5/15/11 (d)(e)	1,510		1,125
Nortek, Inc. 4.17% 12/31/10 (e)(i)	770		770
			4,221
Commercial Services & Supplies - 0.1%
Allied Waste North America, Inc.:
7.875% 1/1/09	62		65
7.875% 4/15/13	395		431
9.25% 9/1/12	640		726
American Color Graphics, Inc. 10% 6/15/10	210		187
Browning-Ferris Industries, Inc. 6.375% 1/15/08	2,080		2,122
			3,531
Construction & Engineering - 0.1%
Amsted Industries, Inc. 10.25% 10/15/11 (e)	1,700		1,904
Electrical Equipment - 0.0%
General Cable Corp. 9.5% 11/15/10 (e)	710		776
Industrial Conglomerates - 0.1%
Tyco International Group SA yankee:
6.375% 10/15/11	1,180		1,291
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
INDUSTRIALS - continued
Industrial Conglomerates - continued
Tyco International Group SA yankee: - continued
6.75% 2/15/11	$ 1,345		$ 1,498
6.875% 1/15/29	350		367
			3,156
Machinery - 0.4%
AGCO Corp.:
8.5% 3/15/06	930		930
9.5% 5/1/08	1,530		1,675
Columbus McKinnon Corp. 10% 8/1/10	170		184
Cummins, Inc. 5.65% 3/1/98	1,645		1,184
Dresser, Inc. 9.375% 4/15/11	2,590		2,823
Dunlop Standard Aerospace Holdings PLC yankee 11.875% 5/15/09	5,610		5,975
Invensys PLC 9.875% 3/15/11 (e)	1,865		1,907
Trinity Industries, Inc. 6.5% 3/15/14 (e)	635		633
			15,311
Marine - 0.0%
OMI Corp. 7.625% 12/1/13	875		906
Road & Rail - 0.1%
Kansas City Southern Railway Co. 7.5% 6/15/09	480		492
TFM SA de CV yankee:
10.25% 6/15/07	460		476
11.75% 6/15/09	2,255		2,266
			3,234
TOTAL INDUSTRIALS			40,494
INFORMATION TECHNOLOGY - 0.9%
Communications Equipment - 0.1%
Corning, Inc.:
5.9% 3/15/14	1,120		1,112
6.2% 3/15/16	910		903
L-3 Communications Corp. 6.125% 1/15/14 (e)	980		1,005
Lucent Technologies, Inc. 6.45% 3/15/29	1,235		1,044
Motorola, Inc. 6.5% 11/15/28	345		350
			4,414
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
INFORMATION TECHNOLOGY - continued
Computers & Peripherals - 0.0%
NCR Corp. 7.125% 6/15/09	$ 765		$ 873
Electronic Equipment & Instruments - 0.2%
Flextronics International Ltd. 6.5% 5/15/13	1,705		1,782
Ingram Micro, Inc. 9.875% 8/15/08	1,030		1,148
PerkinElmer, Inc. 8.875% 1/15/13	2,450		2,824
Solectron Corp.:
7.375% 3/1/06	1,400		1,461
9.625% 2/15/09	355		392
			7,607
IT Services - 0.2%
Dex Media, Inc.:
0% 11/15/13 (d)(e)	1,810		1,158
0% 11/15/13 (d)(e)	4,000		2,560
8% 11/15/13 (e)	1,030		1,020
Iron Mountain, Inc.:
6.625% 1/1/16	1,085		1,063
8.625% 4/1/13	720		785
			6,586
Office Electronics - 0.1%
Xerox Corp.:
7.125% 6/15/10	1,390		1,463
7.2% 4/1/16	1,125		1,159
7.625% 6/15/13	1,850		1,966
			4,588
Semiconductors & Semiconductor Equipment - 0.3%
AMI Semiconductor, Inc. 10.75% 2/1/13	574		672
Amkor Technology, Inc.:
7.125% 3/15/11 (e)	1,975		1,975
7.75% 5/15/13	1,285		1,311
Micron Technology, Inc. 6.5% 9/30/05 (l)	5,000		4,975
Viasystems, Inc. 10.5% 1/15/11 (e)	920		1,026
			9,959
TOTAL INFORMATION TECHNOLOGY			34,027
MATERIALS - 1.8%
Chemicals - 0.5%
Airgas, Inc. 6.25% 7/15/14 (e)	830		855
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
MATERIALS - continued
Chemicals - continued
Berry Plastics Corp. 10.75% 7/15/12	$ 2,535		$ 2,877
Equistar Chemicals LP/Equistar Funding Corp.:
8.75% 2/15/09	435		444
10.125% 9/1/08	695		747
10.625% 5/1/11	3,380		3,650
HMP Equity Holdings Corp. 0% 5/15/08 (e)	1,500		795
Huntsman ICI Chemicals LLC 10.125% 7/1/09	730		737
Huntsman International LLC 9.875% 3/1/09	1,685		1,832
Lyondell Chemical Co.:
9.625% 5/1/07	535		554
9.875% 5/1/07	535		556
Millennium America, Inc.:
9.25% 6/15/08	1,275		1,364
9.25% 6/15/08 (e)	935		1,000
Nalco Co.:
7.75% 11/15/11 (e)	710		735
8.875% 11/15/13 (e)	720		747
NOVA Chemicals Corp. 6.5% 1/15/12 (e)	700		721
Pliant Corp. 0% 6/15/09 (d)(e)	980		784
			18,398
Construction Materials - 0.1%
Texas Industries, Inc. 10.25% 6/15/11	2,560		2,906
U.S. Concrete, Inc. 8.375% 4/1/14 (e)	720		738
			3,644
Containers & Packaging - 0.3%
Anchor Glass Container Corp. 11% 2/15/13	1,560		1,802
BWAY Corp. 10% 10/15/10	510		546
Crown European Holdings SA 10.875% 3/1/13	920		1,070
Graphic Packaging International, Inc.:
8.5% 8/15/11	740		829
9.5% 8/15/13	740		840
Jefferson Smurfit Corp. U.S. 7.5% 6/1/13	2,690		2,825
Owens-Brockway Glass Container, Inc. 8.875% 2/15/09	1,290		1,393
Owens-Illinois, Inc.:
7.35% 5/15/08	425		419
7.5% 5/15/10	1,025		989
7.8% 5/15/18	2,160		1,993
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
MATERIALS - continued
Containers & Packaging - continued
Owens-Illinois, Inc.: - continued
8.1% 5/15/07	$ 845		$ 862
Sealed Air Corp. 5.625% 7/15/13 (e)	70		73
			13,641
Metals & Mining - 0.4%
AK Steel Corp.:
7.75% 6/15/12	405		357
7.875% 2/15/09	405		367
Allegheny Ludlum Corp. 6.95% 12/15/25	810		729
Allegheny Technologies, Inc. 8.375% 12/15/11	1,335		1,342
California Steel Industries, Inc. 6.125% 3/15/14 (e)	510		513
Compass Minerals International, Inc. 0% 6/1/13 (d)	2,550		1,938
Corporacion Nacional del Cobre (Codelco) 6.375% 11/30/12 (e)	175		195
CSN Islands VII Corp. 10.75% 9/12/08 (e)	1,395		1,482
CSN Islands VIII Corp. 9.75% 12/16/13 (e)	870		857
Falconbridge Ltd. yankee 7.35% 6/5/12	225		263
Freeport-McMoRan Copper & Gold, Inc.:
6.875% 2/1/14 (e)	1,455		1,415
10.125% 2/1/10	1,160		1,325
Peabody Energy Corp.:
5.875% 4/15/16	640		643
6.875% 3/15/13	1,250		1,350
Steel Dynamics, Inc.:
9.5% 3/15/09	530		591
9.5% 3/15/09 (e)	470		524
			13,891
Paper & Forest Products - 0.5%
Ainsworth Lumber Co. Ltd. 6.75% 3/15/14 (e)	970		975
Boise Cascade Corp. 7.68% 3/29/06	705		749
Bowater, Inc.:
4.11% 3/15/10 (i)	1,110		1,102
6.5% 6/15/13	420		408
Buckeye Technologies, Inc. 8.5% 10/1/13	920		989
Georgia-Pacific Corp.:
8% 1/15/14	1,285		1,433
8% 1/15/24 (e)	895		949
8.125% 5/15/11	2,000		2,275
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
MATERIALS - continued
Paper & Forest Products - continued
Georgia-Pacific Corp.: - continued
8.875% 5/15/31	$ 465		$ 521
9.5% 12/1/11	980		1,176
International Paper Co.:
4.25% 1/15/09	70		72
5.5% 1/15/14	180		187
5.85% 10/30/12	250		268
Norske Skog Canada Ltd.:
7.375% 3/1/14 (e)	500		514
8.625% 6/15/11	1,585		1,696
Stone Container Corp. 9.75% 2/1/11	3,145		3,507
Tembec Industries, Inc.:
7.75% 3/15/12	850		820
8.5% 2/1/11	1,085		1,085
yankee 8.625% 6/30/09	725		725
			19,451
TOTAL MATERIALS			69,025
TELECOMMUNICATION SERVICES - 1.3%
Diversified Telecommunication Services - 0.8%
AT&T Corp. 8.75% 11/15/31	200		236
BellSouth Corp. 6% 10/15/11	285		316
Centennial Cellular Operating Co. LLC/Centennial Finance Corp. 10.75% 12/15/08	2,144		2,187
Cincinnati Bell, Inc. 8.375% 1/15/14	560		543
Citizens Communications Co.:
7.625% 8/15/08	550		578
9% 8/15/31	275		290
9.25% 5/15/11	275		304
Empresa Brasil de Telecomm SA 11% 12/15/08 (e)	1,870		2,024
Eschelon Operating Co. 8.375% 3/15/10 (e)	1,710		1,454
France Telecom SA:
8.75% 3/1/11	340		415
9.5% 3/1/31	280		378
GCI, Inc. 7.25% 2/15/14 (e)	2,110		2,057
Level 3 Communications, Inc.:
9.125% 5/1/08	100		81
10.5% 12/1/08	1,740		1,427
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
TELECOMMUNICATION SERVICES - continued
Diversified Telecommunication Services - continued
MCI Communications Corp.:
6.5% 4/15/10 (c)	$ 1,525		$ 1,212
6.95% 8/15/06 (c)	125		99
7.75% 3/15/24 (c)	855		678
7.75% 3/23/25 (c)	1,460		1,155
8.25% 1/20/23 (c)	400		314
Primus Telecom Holding, Inc. 8% 1/15/14 (e)	1,190		1,139
Qwest Communications International, Inc. 7.25% 2/15/11 (e)	1,050		998
Qwest Corp. 9.125% 3/15/12 (e)	2,480		2,815
Qwest Services Corp.:
13.5% 12/15/10 (e)	1,680		1,949
14% 12/15/14 (e)	1,987		2,384
SBC Communications, Inc. 5.875% 2/1/12	325		355
Telefonica Europe BV 7.75% 9/15/10	450		543
Telenet Group Holding NV 0% 6/15/14 (d)(e)	2,295		1,400
Telewest Communications PLC yankee 11.25% 11/1/08 (c)	255		159
TELUS Corp. yankee 8% 6/1/11	740		891
Triton PCS, Inc.:
8.75% 11/15/11	635		598
9.375% 2/1/11	825		794
U.S. West Communications:
6.875% 9/15/33	980		870
7.2% 11/10/26	630		580
7.5% 6/15/23	935		856
			32,079
Wireless Telecommunication Services - 0.5%
America Movil SA de CV:
4.125% 3/1/09 (e)	190		190
5.5% 3/1/14 (e)	175		174
American Cellular Corp. 10% 8/1/11	1,280		1,229
Crown Castle International Corp. 7.5% 12/1/13	900		882
DirecTV Holdings LLC/DirecTV Financing, Inc. 8.375% 3/15/13	520		595
Dobson Communications Corp. 8.875% 10/1/13	1,825		1,424
Millicom International Cellular SA 10% 12/1/13 (e)	1,825		1,907
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
TELECOMMUNICATION SERVICES - continued
Wireless Telecommunication Services - continued
Nextel Communications, Inc.:
6.875% 10/31/13	$ 1,710		$ 1,821
7.375% 8/1/15	620		673
Rogers Wireless, Inc.:
6.375% 3/1/14 (e)	2,130		2,151
9.625% 5/1/11	4,785		5,850
Western Wireless Corp. 9.25% 7/15/13	1,330		1,367
			18,263
TOTAL TELECOMMUNICATION SERVICES			50,342
UTILITIES - 1.0%
Electric Utilities - 0.3%
AES Gener SA 7.5% 3/25/14 (e)	350		357
CMS Energy Corp.:
7.5% 1/15/09	615		633
7.75% 8/1/10 (e)	455		473
8.5% 4/15/11	1,980		2,126
8.9% 7/15/08	305		328
9.875% 10/15/07	1,295		1,426
Dominion Resources, Inc. 6.25% 6/30/12	445		492
Duke Capital Corp.:
4.37% 3/1/09	190		192
6.75% 2/15/32	880		916
Exelon Corp. 6.75% 5/1/11	260		297
Exelon Generation Co. LLC 5.35% 1/15/14 (e)	400		412
FirstEnergy Corp. 7.375% 11/15/31	1,025		1,143
Illinois Power Co. 7.5% 6/15/09	550		622
MidAmerican Energy Holdings, Inc.:
4.625% 10/1/07	275		289
5.875% 10/1/12	300		324
Monongahela Power Co. 5% 10/1/06	265		270
Pacific Gas & Electric Co.:
3.6% 3/1/09	55		55
4.8% 3/1/14	90		90
6.05% 3/1/34	325		329
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
UTILITIES - continued
Electric Utilities - continued
Progress Energy, Inc.:
6.85% 4/15/12	$ 245		$ 280
7.1% 3/1/11	140		162
PSI Energy, Inc. 6.65% 6/15/06	115		126
Public Service Co. of Colorado 7.875% 10/1/12	395		493
TECO Energy, Inc.:
7% 5/1/12	745		782
7.2% 5/1/11	690		737
			13,354
Gas Utilities - 0.1%
El Paso Energy Corp.:
6.75% 5/15/09	645		569
6.95% 12/15/07	770		703
Ras Laffan Liquid Natural Gas Co. Ltd. yankee 8.294% 3/15/14 (e)	575		690
Sonat, Inc.:
6.75% 10/1/07	1,250		1,117
7.625% 7/15/11	1,905		1,650
			4,729
Multi-Utilities & Unregulated Power - 0.6%
AES Corp.:
7.75% 3/1/14	1,970		1,958
8.375% 8/15/07	550		558
8.5% 11/1/07	1,680		1,718
8.75% 6/15/08	1,399		1,469
8.75% 5/15/13 (e)	1,590		1,743
8.875% 2/15/11	1,746		1,866
9% 5/15/15 (e)	705		777
9.375% 9/15/10	207		225
9.5% 6/1/09	300		326
Constellation Energy Group, Inc. 6.35% 4/1/07	405		446
NRG Energy, Inc. 8% 12/15/13 (e)	2,005		2,070
Williams Companies, Inc.:
7.125% 9/1/11	1,885		1,979
7.5% 1/15/31	370		357
7.875% 9/1/21	1,555		1,576
Corporate Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Nonconvertible Bonds - continued
UTILITIES - continued
Multi-Utilities & Unregulated Power - continued
Williams Companies, Inc.: - continued
8.125% 3/15/12	$ 1,920		$ 2,131
8.625% 6/1/10	1,600		1,760
			20,959
TOTAL UTILITIES			39,042
TOTAL NONCONVERTIBLE BONDS			476,987
TOTAL CORPORATE BONDS (Cost $461,820)		494,836
U.S. Government and Government Agency Obligations - 1.2%

U.S. Government Agency Obligations - 0.3%
Fannie Mae:
4% 9/2/08	600		623
5.25% 8/1/12	1,345		1,428
6.25% 2/1/11	4,010		4,562
Freddie Mac:
5.25% 11/5/12	3,905		4,048
5.875% 3/21/11	2,215		2,468
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS			13,129
U.S. Treasury Inflation Protected Obligations - 0.1%
U.S. Treasury Inflation-Indexed Bonds 3.625% 4/15/28	1,431		1,886
U.S. Treasury Obligations - 0.8%
U.S. Treasury Bills, yield at date of purchase 0.87% to 0.94% 4/22/04 to 6/10/04 (h)	10,500		10,484
U.S. Treasury Bonds 7.875% 2/15/21	7,485		10,352
U.S. Government and Government Agency Obligations - continued
	Principal Amount (000s)		Value (Note 1) (000s)
U.S. Treasury Obligations - continued
U.S. Treasury Notes:
3.25% 8/15/07 (f)	$ 5,500		$ 5,695
6.5% 2/15/10	3,865		4,582
TOTAL U.S. TREASURY OBLIGATIONS			31,113
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $45,528)		46,128
U.S. Government Agency - Mortgage Securities - 1.4%

Fannie Mae - 1.1%
4% 8/1/18 to 3/1/19	5,150		5,118
5% 3/1/18 to 9/1/18	3,751		3,860
5% 4/1/34 (f)	2,000		2,009
5.5% 7/1/16 to 3/1/18	3,457		3,605
5.5% 4/20/19 (f)	1,000		1,041
5.5% 4/20/19 (f)	1,500		1,562
5.5% 4/1/34 (f)	5,707		5,846
6% 1/1/09 to 1/1/29	3,461		3,633
6% 4/1/34 (f)	660		687
6.5% 11/1/13 to 8/1/32	4,801		5,075
6.5% 4/1/19 (f)	1,000		1,063
6.5% 4/1/19 (f)	124		132
6.5% 4/1/34 (f)	807		847
7% 9/1/14 to 6/1/32 (g)	3,726		3,968
7% 4/1/19 (f)	26		27
7.5% 5/1/27 to 11/1/31	1,556		1,669
8% 6/1/10	8		8
TOTAL FANNIE MAE			40,150
Freddie Mac - 0.0%
5% 11/1/33	197		198
7.5% 4/1/22 to 4/1/32	541		583
8% 7/1/25 to 4/1/27	169		184
TOTAL FREDDIE MAC			965
Government National Mortgage Association - 0.3%
6% 6/15/08 to 9/15/10	312		331
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Government National Mortgage Association - continued
6.5% 9/15/08 to 8/15/32	$ 10,161		$ 10,752
7% 1/15/28 to 7/15/28	1,063		1,134
7% 4/1/34 (f)	250		266
7.5% 10/15/22 to 8/15/28	440		476
8% 5/15/25	47		51
8.5% 10/15/29 to 4/15/30	116		127
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION			13,137
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES (Cost $52,656)		54,252
Asset-Backed Securities - 0.4%

Accredited Mortgage Loan Trust Series 2003-2 Class A1, 4.23% 10/25/33	363		367
AmeriCredit Automobile Receivables Trust:
Series 2003-AM Class A4B, 1.57% 11/6/09 (i)	230		232
Series 2003-BX:
Class A4A, 2.72% 1/6/10	200		203
Class A4B, 1.48% 1/6/10 (i)	150		151
Ameriquest Mortgage Securities, Inc.:
Series 2002-AR1 Class M2, 2.39% 9/25/32 (i)	65		65
Series 2003-3 Class M1, 1.89% 3/25/33 (i)	275		277
Amortizing Residential Collateral Trust:
Series 2002-BC3N Class B2, 7% 6/25/32 (e)	17		17
Series 2002-BC6 Class A2, 1.44% 8/25/32 (i)	446		447
Series 2002-BC7 Class M1, 1.89% 10/25/32 (i)	1,550		1,562
Argent Securities, Inc. Series 2003-W3 Class M2, 2.89% 9/25/33 (i)	375		385
Asset Backed Securities Corp. Home Equity Loan Trust Series 2003-HE2:
Class A2, 1.47% 4/15/33 (i)	387		388
Class M1, 1.99% 4/15/33 (i)	325		330
Associates Automobile Receivables Trust Series 2000-1 Class B, 7.83% 8/15/07	454		465
Bayview Financial Asset Trust Series 2000-F Class A, 1.59% 9/28/43 (i)	886		890
Capital One Auto Finance Trust Series 2003-A Class A4B, 1.37% 1/15/10 (i)	440		443
Capital One Master Trust:
Series 2002-3A Class B, 4.55% 2/15/08	1,800		1,842
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Capital One Master Trust: - continued
Series 2002-4 Class A, 4.9% 3/15/10	$ 1,180		$ 1,267
Capital One Multi-Asset Execution Trust:
Series 2002-B1 Class B1, 1.77% 7/15/08 (i)	600		604
Series 2003-2B Class B2, 3.5% 2/17/09	275		282
Series 2003-B1 Class B1, 2.26% 2/17/09 (i)	520		530
CDC Mortgage Capital Trust Series 2003-HE2 Class M2, 2.99% 10/25/33 (i)	120		124
Countrywide Home Loans, Inc. Series 2002-6 Class AV1, 1.52% 5/25/33 (i)	624		625
First USA Secured Note Trust Series 2001-3 Class C, 2.14% 11/19/08 (e)(i)	425		430
Ford Credit Auto Owner Trust Series 2001-B Class B, 5.71% 9/15/05	335		339
GSAMP NIMS Trust Series 2002-HE2N Class NOTE, 8.25% 10/20/32 (e)	44		44
Home Equity Asset Trust Series 2003-2:
Class A2, 1.47% 8/25/33 (i)	73		74
Class M1, 1.97% 8/25/33 (i)	130		132
Home Equity Asset Trust NIMS Trust:
Series 2002-3N Class A, 8% 3/25/33 (e)	7		7
Series 2003-2N Class A, 8% 9/27/33 (e)	76		76
Household Private Label Credit Card Master Note Trust I:
Series 2002-1 Class A, 5.5% 1/18/11	100		108
Series 2002-3 Class B, 2.34% 9/15/09 (i)	270		274
Long Beach Mortgage Loan Trust Series 2003-3:
Class M1, 1.84% 7/25/33 (i)	355		359
Class M2, 2.94% 7/25/33 (i)	180		185
MBNA Credit Card Master Note Trust:
Series 2001-B1 Class B1, 1.465% 10/15/08 (i)	150		150
Series 2001-B2 Class B2, 1.45% 1/15/09 (i)	150		151
Series 2002-B2 Class B2, 1.47% 10/15/09 (i)	150		151
Morgan Stanley ABS Capital I, Inc.:
Series 2002-HE3 Class M1, 2.19% 12/27/32 (i)	70		71
Series 2003-HE1 Class M2, 2.99% 5/25/33 (i)	210		213
Series 2003-NC6 Class M2, 3.04% 6/27/33 (i)	585		598
Morgan Stanley Dean Witter Capital I Trust:
Series 2001-AM1 Class M2, 2.49% 2/25/32 (i)	315		318
Series 2002-NC3 Class M1, 1.81% 8/25/32 (i)	55		56
Series 2002-NC5N Class NOTE, 9.5% 9/25/32 (e)	38		38
Morgan Stanley Dean Witter Capital I, Inc. Series 2003-NC2N Class NOTE, 9.5% 12/25/32 (e)	130		131
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (Note 1) (000s)
New Century Home Equity Loan Trust Series 2003-2 Class A2, 1.52% 1/25/33 (i)	$ 323		$ 323
Residential Asset Mortgage Products, Inc. Series 2003-RZ2 Class A1, 3.6% 4/25/33	323		322
Salomon Brothers Mortgage Securities VII, Inc. Series 2003-UP1 Class A, 3.45% 4/25/32 (e)	251		252
Structured Asset Securities Corp. Series 2004-GEL1 Class A, 1.45% 3/25/34 (i)	74		74
TOTAL ASSET-BACKED SECURITIES (Cost $16,138)		16,372
Collateralized Mortgage Obligations - 0.1%

Private Sponsor - 0.0%
CS First Boston Mortgage Securities Corp. Series 2003-TFLA Class F, 1.9433% 4/15/13 (e)(i)	145		143
Master Alternative Loan Trust Series 2004-3 Class 3A1, 6% 4/25/34	75		78
Merrill Lynch Mortgage Investors, Inc.:
floater Series 2003-A Class 2A1, 1.48% 3/25/28 (i)	611		613
Series 2003-E Class XA1, 1% 10/25/28 (i)(k)	2,875		41
Series 2003-G Class XA1, 1% 1/25/29 (k)	2,547		43
Series 2003-H Class XA1, 1% 11/25/28 (e)(k)	2,250		39
Residential Asset Mortgage Products, Inc. sequential pay Series 2003-SL1 Class A31, 7.125% 4/25/31	422		443
Residential Finance LP/Residential Finance Development Corp. floater Series 2003-CB1:
Class B3, 2.5425% 6/10/35 (e)(i)	119		120
Class B4, 2.7425% 6/10/35 (e)(i)	104		105
Class B5, 3.3425% 6/10/35 (e)(i)	69		70
Class B6, 3.8425% 6/10/35 (e)(i)	44		45
Sequoia Mortgage Funding Trust Series 2003-A Class AX1, 0.8% 10/21/08 (e)(k)	10,240		116
Washington Mutual Mortgage Securities Corp. sequential pay Series 2003-MS9 Class 2A1, 7.5% 12/25/33	99		103
TOTAL PRIVATE SPONSOR			1,959
U.S. Government Agency - 0.1%
Fannie Mae planned amortization class:
Series 1999-54 Class PH, 6.5% 11/18/29	800		841
Series 1999-57 Class PH, 6.5% 12/25/29	700		745
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (Note 1) (000s)
U.S. Government Agency - continued
Fannie Mae guaranteed REMIC pass thru certificates planned amortization class Series 2002-64 Class PC, 5.5% 12/25/26	$ 270		$ 276
Freddie Mac Multi-class participation certificates guaranteed:
planned amortization class Series 2435 Class EL, 6% 9/15/27	626		630
sequential pay Series 2303 Class VT, 6% 2/15/12	143		143
Series 2707:
Class ZA, 4.5% 11/15/18	100		99
Class ZE, 5% 11/15/18	74		74
Ginnie Mae guaranteed Multi-family pass thru securities sequential pay Series 2002-35 Class C, 5.8664% 10/16/23 (i)	55		61
TOTAL U.S. GOVERNMENT AGENCY			2,869
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $4,576)		4,828
Commercial Mortgage Securities - 0.6%

Asset Securitization Corp.:
sequential pay Series 1995-MD4 Class A1, 7.1% 8/13/29	175		187
Series 1997-D5 Class PS1, 1.315% 2/14/43 (i)(k)	3,712		238
Banc of America Commercial Mortgage, Inc. Series 2003-1 Class XP1, 1.475% 9/11/36 (e)(i)(k)	10,555		307
Banc of America Large Loan, Inc.:
floater Series 2003-BBA2:
Class C, 1.56% 11/15/15 (e)(i)	35		35
Class D, 1.64% 11/15/15 (e)(i)	60		60
Series 2003-BBA2:
Class A3, 1.41% 11/15/15 (e)(i)	180		180
Class F, 1.99% 11/15/15 (e)(i)	40		40
Class H, 2.49% 11/15/15 (e)(i)	35		35
Class J, 3.04% 11/15/15 (e)(i)	40		40
Class K, 3.69% 11/15/15 (e)(i)	35		35
Bayview Commercial Asset Trust floater Series 2003-1 Class A, 1.67% 8/25/33 (e)(i)	391		393
Berkeley Federal Bank & Trust FSB Series 1994-1 Class B, 0.289% 8/1/24 (e)(i)	429		365
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (Note 1) (000s)
CBM Funding Corp. sequential pay Series 1996-1:
Class A3PI, 7.08% 11/1/07	$ 705		$ 765
Class B, 7.48% 2/1/08	770		860
Chase Commercial Mortgage Securities Corp.:
Series 1999-2:
Class E, 7.734% 1/15/32	110		129
Class F, 7.734% 1/15/32	60		69
Series 2001-245 Class A2, 6.0658% 2/12/16 (e)(i)	135		151
COMM floater:
Series 2001-FL5A Class A2, 1.64% 11/15/13 (e)(i)	94		94
Series 2002-FL7 Class A2, 1.44% 11/15/14 (e)(i)	330		330
Crest Dartmouth Street 2003 1 Ltd./Crest Dartmouth Street 2003 1 Corp. Series 2003-1A Class C, 6.667% 6/28/38 (e)	315		315
CS First Boston Mortgage Securities Corp.:
floater Series 2001-TFLA Class B, 1.99% 12/15/11 (e)(i)	685		684
Series 1997-C2 Class D, 7.27% 1/17/35	1,380		1,576
Series 1998-C1 Class D, 7.17% 5/17/40	175		196
Series 2003-C3 Class ASP, 1.9632% 5/15/38 (e)(i)(k)	4,675		372
Series 2004-C1 Class ASP, 1.2154% 1/15/37 (e)(i)(k)	2,945		141
Deutsche Mortgage & Asset Receiving Corp. sequential pay Series 1998-C1 Class D, 7.231% 6/15/31	1,420		1,515
First Union National Bank-Chase Manhattan Bank Commercial Mortgage Trust Series 1999-C2 Class C 6.944% 6/15/31	675		775
FMAC Loan Receivables Trust weighted average coupon Series 1997-A Class E, 0% 4/15/19 (c)(e)(i)	359		0
GAFCO Franchisee Loan Trust Series 1998-1 Class D, 13.5% 6/1/16 (e)(i)	1,650		1,127
Ginnie Mae guaranteed Multi-family pass thru securities:
sequential pay Series 2002-26 Class C, 6.0097% 2/16/24 (i)	540		598
Series 2003-87 Class C, 5.3155% 8/16/32 (i)	500		534
Ginnie Mae guaranteed REMIC pass thru securities:
sequential pay Series 2003-47 Class C, 4.227% 10/16/27	480		488
Series 2003-47 Class XA, 0.0213% 6/16/43 (i)(k)	1,508		75
Greenwich Capital Commercial Funding Corp.:
Series 2002-C1 Class SWDB 5.857% 11/11/19 (e)	445		458
Series 2003-C1 Class XP, 2.2432% 7/5/35 (e)(i)(k)	2,370		217
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (Note 1) (000s)
GS Mortgage Securities Corp. II:
sequential pay:
Series 1998-GLII Class A2, 6.562% 4/13/31	$ 470		$ 527
Series 2001-LIBA Class A2, 6.615% 2/14/16 (e)	135		153
Series 1998-GLII Class E, 6.9702% 4/13/31 (i)	430		444
J.P. Morgan Commercial Mortgage Finance Corp. sequential pay Series 1999-C7 Class A2, 6.507% 10/15/35	520		589
KSL Resorts Series 2003-1A:
Class A, 1.64% 5/15/13 (e)(i)	175		175
Class B, 1.79% 5/15/13 (e)(i)	100		100
Class K, 3.74% 5/15/13 (e)(i)	175		175
Class L, 3.94% 5/15/13 (e)(i)	175		175
LB Commercial Conduit Mortgage Trust:
Series 1998-C1 Class B, 6.59% 2/18/30	440		495
Series 1999-C1 Class B, 6.93% 6/15/31	95		110
Leafs CMBS I Ltd./Leafs CMBS I Corp. Series 2002-1A Class C, 4.13% 11/20/37 (e)	360		336
LTC Commercial Mortgage pass thru certificates sequential pay Series 1998-1 Class A, 6.029% 5/28/30 (e)	516		518
Morgan Stanley Capital I, Inc. sequential pay Series 1999-WF1 Class A2, 6.21% 11/15/31	115		129
Morgan Stanley Dean Witter Capital I Trust Series 2003-HQ2 Class X2, 1.5792% 3/12/35 (e)(i)(k)	2,686		196
Penn Mutual Life Insurance Co./Penn Insurance & Annuity Co. Series 1996-PML:
Class K, 7.9% 11/15/26 (e)	1,750		1,994
Class L, 7.9% 11/15/26 (e)	1,300		1,510
Salomon Brothers Mortgage Securities VII, Inc. sequential pay Series 2000-C3 Class A2, 6.592% 12/18/33	360		413
Thirteen Affiliates of General Growth Properties, Inc. Series 1:
Class D2, 6.992% 11/15/07 (e)	1,410		1,583
Class E2, 7.224% 11/15/07 (e)	840		938
Trizechahn Office Properties Trust Series 2001-TZHA Class E3, 7.253% 3/15/13 (e)	350		373
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $22,089)		24,317
Foreign Government and Government Agency Obligations - 0.1%
	Principal Amount (000s)		Value (Note 1) (000s)
Chilean Republic:
5.5% 1/15/13	$ 595		$ 629
7.125% 1/11/12	855		998
State of Israel 4.625% 6/15/13	355		347
United Mexican States:
7.5% 4/8/33	150		164
8% 9/24/22	700		809
TOTAL FOREIGN GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $2,652)		2,947
Floating Rate Loans - 0.2%

CONSUMER DISCRETIONARY - 0.2%
Hotels, Restaurants & Leisure - 0.2%
Hilton Head Communications LP Tranche B term loan 5.25% 3/31/08 (i)	1,800		1,701
Wyndham International, Inc. term loan:
5.875% 6/30/06 (i)	3,298		3,166
6.875% 4/1/06 (i)	548		532
			5,399
Media - 0.0%
Century Cable Holdings LLC Tranche B term loan 6% 12/31/09 (f)(i)	900		853
TOTAL CONSUMER DISCRETIONARY			6,252
UTILITIES - 0.0%
Electric Utilities - 0.0%
Allegheny Energy Supply Co. LLC Tranche C term loan 6.25% 6/8/11 (i)	1,500		1,506
TOTAL FLOATING RATE LOANS (Cost $7,480)		7,758

Fixed-Income Funds - 0.1%
	Shares
Fidelity Ultra-Short Central Fund (j) (Cost $3,300)	33,154		3,304
Money Market Funds - 10.9%
	Shares		Value (Note 1) (000s)
Fidelity Cash Central Fund, 1.08% (b)	389,709,443		$ 389,709
Fidelity Money Market Central Fund, 1.15% (b)	8,056,119		8,056
Fidelity Securities Lending Cash Central Fund, 1.08% (b)	12,563,850		12,564
TOTAL MONEY MARKET FUNDS (Cost $410,329)		410,329
TOTAL INVESTMENT PORTFOLIO - 100.3% (Cost $3,689,171)			3,789,231
NET OTHER ASSETS - (0.3)%			(11,690)
NET ASSETS - 100%		$ 3,777,541

Futures Contracts
	Expiration Date	Underlying Face Amount at Value (000s)	Unrealized Appreciation/ (Depreciation) (000s)
Purchased
Equity Index Contracts
576 S&P 500 Index Contracts	June 2004	$ 161,986	$ 1,451

The face value of futures purchased as a percentage of net assets - 4.3%

Swap Agreements
		Notional Amount (000s)
Credit Default Swap
Receive quarterly notional amount multiplied by .35% and pay Goldman Sachs upon default event of Devon Energy Corp., par value of the notional amount of Devon Energy Corp. 7.95% 4/15/32	June 2006	$ 100	0
Receive quarterly notional amount multiplied by .38% and pay Merrill Lynch, Inc. upon default event of EnCana Corp., par value of the notional amount of EnCana Corp. 4.75% 10/15/13	March 2009	800	(7)
Swap Agreements - continued
	Expiration Date	Notional Amount (000s)	Unrealized Appreciation/ (Depreciation) (000s)
Credit Default Swap - continued
Receive quarterly notional amount multiplied by .41% and pay Merrill Lynch, Inc. upon default event of Talisman Energy, Inc., par value of the notional amount of Talisman Energy, Inc. 7.25% 10/15/27	March 2009	$ 200	$ (2)
Receive quarterly notional amount multiplied by .53% and pay Deutsche Bank upon default event of SBC Communications, Inc., par value of the notional amount of SBC Communications, Inc. 6.25% 3/15/11	March 2009	150	0
Receive quarterly notional amount multiplied by .53% and pay Lehman Brothers, Inc., upon default event of SBC Communications, Inc., par value of the notional amount of SBC Communications, Inc. 6.25% 3/15/11	March 2009	100	0
Receive quarterly notional amount multiplied by .565% and pay Morgan Stanley, Inc. upon default event of Walt Disney Co., par value of the notional amount of Walt Disney Co. 6.375% 3/1/12	March 2009	500	0
Receive quarterly notional amount multiplied by .59% and pay Merrill Lynch, Inc. upon default event of Raytheon Co., par value of the notional amount of Raytheon Co. 6.55% 3/15/10	March 2009	800	(2)
Receive quarterly notional amount multiplied by 1.38% and pay Merrill Lynch, Inc. upon default event of Bombardier, Inc., par value of the notional amount of Bombardier, Inc. 6.75% 5/1/12	March 2009	400	(4)
Receive quarterly notional amount multiplied by 1.4% and pay Merrill Lynch, Inc. upon default event of Bombardier, Inc., par value of the notional amount of Bombardier, Inc. 6.75% 5/1/12	March 2009	100	(1)
TOTAL CREDIT DEFAULT SWAP		3,150	(16)
Swap Agreements - continued
	Expiration Date	Notional Amount (000s)	Unrealized Appreciation/ (Depreciation) (000s)
Interest Rate Swap
Receive quarterly a fixed rate equal to 2.34034% and pay quarterly a floating rate based on 3-month LIBOR with JPMorgan Chase, Inc.	March 2007	$ 2,000	$ 5
Receive quarterly a fixed rate equal to 2.39024% and pay quarterly a floating rate based on 3-month LIBOR with Lehman Brothers, Inc.	July 2006	300	3
Receive quarterly a fixed rate equal to 2.5509% and pay quarterly a floating rate based on 3-month LIBOR with JPMorgan Chase, Inc.	Jan. 2007	200	2
Receive quarterly a fixed rate equal to 2.745% and pay quarterly a floating rate based on 3-month LIBOR with Lehman Brothers, Inc.	March 2008	3,300	(6)
Receive quarterly a fixed rate equal to 2.819% and pay quarterly a floating rate based on 3-month LIBOR with Lehman Brothers, Inc.	August 2007	1,500	10
TOTAL INTEREST RATE SWAP		7,300	14
Total Return Swap
Receive monthly a return equal to Lehman Brothers CMBS AAA 8.5+ and pay monthly a floating rate based on 1-month LIBOR minus 65 basis points with Lehman Brothers, Inc.	Oct. 2004	1,000	16
Receive monthly a return equal to Lehman Brothers CMBS Erisa Eligible and pay monthly a floating rate based on 1-month LIBOR minus 50 basis points with Lehman Brothers, Inc.	August 2004	250	3
Receive monthly a return equal to Lehman Brothers CMBS Erisa Eligible and pay monthly a floating rate based on 1-month LIBOR minus 50 basis points with Lehman Brothers, Inc.	Sept. 2004	680	2
Swap Agreements - continued
	Expiration Date	Notional Amount (000s)	Unrealized Appreciation/ (Depreciation) (000s)
Total Return Swap - continued
Receive quarterly a return equal to Banc of America Securities LLC AAA 10Yr Commercial Mortgage-Backed Securities Daily Index and pay quarterly a floating rate based on 3-month LIBOR minus 80 basis points with Bank of America	April 2004	$ 1,000	$ 19
Receive quarterly a return equal to Banc of America Securities LLC AAA 10Yr Commercial Mortgage-Backed Securities Daily Index and pay quarterly a floating rate based on 3-month LIBOR minus 75 basis points with Bank of America	May 2004	700	13
TOTAL TOTAL RETURN SWAP		3,630	53
		$ 14,080	$ 51

Legend

(a) Non-income producing

(d) Debt obligation initially issued in zero coupon form which converts to coupon form at a specified rate and date. The rate shown is the rate at period end.

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

(g) A portion of the security is subject to a forward commitment to sell.

(h) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $10,484,000.

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

(k) Security represents right to receive monthly interest payments on an underlying pool of mortgages. Principal shown is the par amount of the mortgage pool.

Additional information on each holding is as follows:

Security	Acquisition Date	Acquisition Cost (000s)
Arena Brands Holding Corp. Class B	6/18/97	$ 224
Micron Technology, Inc. 6.5% 9/30/05	7/15/99 - 9/12/02	$ 4,192

Other Information

The composition of credit quality ratings as a percentage of net assets is as follows (ratings are unaudited):

U.S. Government and U.S. Government Agency Obligations	2.4%
AAA,AA,A	0.6%
BBB	0.5%
BB	4.3%
B	6.5%
CCC,CC,C	2.0%
Not Rated	0.6%
Equities	76.5%
Short-Term Investments and Net Other Assets	6.6%
	100.0%

We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. Percentages are adjusted for the effect of futures contracts, if applicable.

Distribution of investments by country of issue, as a percentage of total net assets, is as follows:

United States of America	89.2%
United Kingdom	1.5%
Japan	1.4%
Canada	1.4%
Others (individually less than 1%)	6.5%
	100.0%

Purchases and sales of securities, other than short-term securities, aggregated $1,236,343,000 and $1,344,623,000, respectively, of which long-term U.S. government and government agency obligations aggregated $102,980,000 and $200,658,000, respectively.

The fund invested in loans and loan participations, trade claims or other receivables. At period end the value of these investments amounted to $7,758,000 or 0.2% of net assets.

Income Tax Information

At September 30, 2003, the fund had a capital loss carryforward of approximately $689,318,000 of which $74,519,000, $377,623,000 and $237,176,000 will expire on September 30, 2009, 2010 and 2011, respectively.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

Amounts in thousands (except per-share amount)	March 31, 2004 (Unaudited)

Assets
Investment in securities, at value (including securities loaned of $12,138) (cost $3,689,171) - See accompanying schedule		$ 3,789,231
Commitment to sell securities on a delayed delivery basis	$ (265)
Receivable for securities sold on a delayed delivery basis	265	-
Receivable for investments sold, regular delivery		40,599
Cash		1,280
Foreign currency held at value (cost $7,686)		7,756
Receivable for fund shares sold		3,003
Dividends receivable		3,452
Interest receivable		10,806
Unrealized gain on swap agreements		51
Prepaid expenses		15
Other affiliated receivables		18
Other receivables		330
Total assets		3,856,541

Liabilities
Payable for investments purchased Regular delivery	28,397
Delayed delivery	20,008
Payable for fund shares redeemed	15,113
Accrued management fee	1,815
Payable for daily variation on futures contracts	173
Other affiliated payables	865
Other payables and accrued expenses	65
Collateral on securities loaned, at value	12,564
Total liabilities		79,000

Net Assets		$ 3,777,541
Net Assets consist of:
Paid in capital		$ 4,224,582
Undistributed net investment income		18,209
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(566,893)
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		101,643
Net Assets, for 260,502 shares outstanding		$ 3,777,541
Net Asset Value, offering price and redemption price per share ($3,777,541 ÷ 260,502 shares)		$ 14.50

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Statement of Operations

Amounts in thousands	Six months ended March 31, 2004 (Unaudited)

Investment Income
Dividends		$ 20,988
Interest		26,767
Security lending		19
Total income		47,774

Expenses
Management fee	$ 10,737
Transfer agent fees	3,975
Accounting and security lending fees	474
Non-interested trustees' compensation	12
Appreciation in deferred trustee compensation account	8
Custodian fees and expenses	61
Registration fees	30
Audit	42
Legal	12
Miscellaneous	21
Total expenses before reductions	15,372
Expense reductions	(232)	15,140
Net investment income (loss)		32,634
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities	121,143
Foreign currency transactions	(73)
Futures contracts	14,220
Swap agreements	236
Total net realized gain (loss)		135,526
Change in net unrealized appreciation (depreciation) on: Investment securities	175,677
Assets and liabilities in foreign currencies	80
Futures contracts	6,039
Swap agreements	56
Total change in net unrealized appreciation (depreciation)		181,852
Net gain (loss)		317,378
Net increase (decrease) in net assets resulting from operations		$ 350,012

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Statement of Changes in Net Assets

Amounts in thousands	Six months ended March 31, 2004 (Unaudited)	Year ended September 30, 2003
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 32,634	$ 84,792
Net realized gain (loss)	135,526	(41,216)
Change in net unrealized appreciation (depreciation)	181,852	629,944
Net increase (decrease) in net assets resulting from operations	350,012	673,520
Distributions to shareholders from net investment income	(80,435)	(98,119)
Share transactions Net proceeds from sales of shares	236,061	404,289
Reinvestment of distributions	79,098	96,342
Cost of shares redeemed	(327,750)	(677,813)
Net increase (decrease) in net assets resulting from share transactions	(12,591)	(177,182)
Total increase (decrease) in net assets	256,986	398,219

Net Assets
Beginning of period	3,520,555	3,122,336
End of period (including undistributed net investment income of $18,209 and undistributed net investment income of $66,010, respectively)	$ 3,777,541	$ 3,520,555
Other Information Shares
Sold	16,539	31,982
Issued in reinvestment of distributions	5,626	7,942
Redeemed	(22,960)	(54,887)
Net increase (decrease)	(795)	(14,963)

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Highlights

	Six months ended March 31, 2004	Years ended September 30,
	(Unaudited)	2003	2002	2001	2000	1999
Selected Per-Share Data
Net asset value, beginning of period	$ 13.47	$ 11.30	$ 13.48	$ 20.33	$ 19.05	$ 18.80
Income from Investment Operations
Net investment income (loss)^D	.12	.32	.37^F	.42	.48	.46
Net realized and unrealized gain (loss)	1.22	2.21	(2.13)^F	(4.25)	2.35	2.82
Total from investment operations	1.34	2.53	(1.76)	(3.83)	2.83	3.28
Distributions from net investment income	(.31)	(.36)	(.42)	(.46)	(.45)	(.35)
Distributions from net realized gain	-	-	-	(2.56)	(1.10)	(2.68)
Total distributions	(.31)	(.36)	(.42)	(3.02)	(1.55)	(3.03)
Net asset value, end of period	$ 14.50	$ 13.47	$ 11.30	$ 13.48	$ 20.33	$ 19.05
Total Return^{B, C}	10.02%	22.74%	(13.71)%	(20.93)%	15.50%	18.37%
Ratios to Average Net Assets^E
Expenses before expense reductions	.83%^A	.84%	.84%	.81%	.80%	.83%
Expenses net of voluntary waivers, if any	.83%^A	.84%	.84%	.81%	.80%	.83%
Expenses net of all reductions	.81%^A	.83%	.81%	.78%	.77%	.80%
Net investment income (loss)	1.75%^A	2.53%	2.73%^F	2.62%	2.46%	2.38%
Supplemental Data
Net assets, end of period (in millions)	$ 3,778	$ 3,521	$ 3,122	$ 3,916	$ 5,256	$ 5,051
Portfolio turnover rate	76%^A	72%	101%	143%	197%	101%

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns would have been lower had certain expenses not been reduced during the periods shown.

^D Calculated based on average shares outstanding during the period.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Notes to Financial Statements

For the period ended March 31, 2004 (Unaudited)

(Amounts in thousands except ratios)

1. Significant Accounting Policies.

Fidelity Asset Manager: Growth (the fund) is a fund of Fidelity Charles Street Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

1. Significant Accounting Policies - continued

Foreign Currency - continued

Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. The fund estimates the components of distributions received from Real Estate Investment Trusts (REITs). Distributions received in excess of income are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities, which is accrued using the interest method. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectibility of interest is reasonably assured.

Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.

Semiannual Report

1. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

The federal tax cost of investments including unrealized appreciation (depreciation) as of period end was as follows:

Unrealized appreciation	$ 305,405
Unrealized depreciation	(218,408)
Net unrealized appreciation (depreciation)	$ 86,997
Cost for federal income tax purposes	$ 3,702,234

2. Operating Policies.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

2. Operating Policies - continued

Delayed Delivery Transactions and When-Issued Securities - continued

Futures Contracts. The fund may use futures contracts to manage its exposure to the stock market. Buying futures tends to increase the fund's exposure to the underlying instrument, while selling futures tends to decrease the fund's exposure to the underlying instrument or hedge other fund investments. Futures contracts involve, to varying degrees, risk of loss in excess of any futures variation margin reflected in the Statement of Assets and Liabilities. The underlying face amount at value of any open futures contracts at period end is shown in the Schedule of Investments under the caption "Futures Contracts." This amount reflects each contract's exposure to the underlying instrument at period end. Losses may arise from changes in the value of the underlying instruments or if the counter-parties do not perform under the contracts' terms. Gains (losses) are realized upon the expiration or closing of the futures contracts. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.

Swap Agreements. The fund may invest in swaps for the purpose of managing its exposure to interest rate, credit or market risk.

Semiannual Report

2. Operating Policies - continued

Swap Agreements - continued

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

2. Operating Policies - continued

Financing Transactions - continued

3. Purchases and Sales of Investments.

Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.

4. Fees and Other Transactions with Affiliates.

Semiannual Report

4. Fees and Other Transactions with Affiliates - continued

5. Committed Line of Credit.

6. Security Lending.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

7. Expense Reductions.

Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services included payments of certain expenses on behalf of the fund totaling $217 for the period. In addition, through arrangements with the fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. During the period, these credits reduced the fund's custody and transfer agent expenses by $5 and $10, respectively.

Semiannual Report

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Semiannual Report

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851 East Hamilton Avenue
Campbell, CA

123 South Lake Avenue
Pasadena, CA

19200 Von Karman Avenue
Irvine, CA

601 Larkspur Landing Circle
Larkspur, CA

10100 Santa Monica Blvd.
Los Angeles, CA

27101 Puerta Real
Mission Viejo, CA

73-575 El Paseo
Palm Desert, CA

251 University Avenue
Palo Alto, CA

1760 Challenge Way
Sacramento, CA

7676 Hazard Center Drive
San Diego, CA

8 Montgomery Street
San Francisco, CA

21701 Hawthorne Boulevard
Torrance, CA

2001 North Main Street
Walnut Creek, CA

6300 Canoga Avenue
Woodland Hills, CA

Colorado

1625 Broadway
Denver, CO

9185 East Westview Road
Littleton, CO

Connecticut

48 West Putnam Avenue
Greenwich, CT

265 Church Street
New Haven, CT

300 Atlantic Street
Stamford, CT

29 South Main Street
West Hartford, CT

Delaware

222 Delaware Avenue
Wilmington, DE

Florida

4400 N. Federal Highway
Boca Raton, FL

121 Alhambra Plaza
Coral Gables, FL

2948 N. Federal Highway
Ft. Lauderdale, FL

1907 West State Road 434
Longwood, FL

8880 Tamiami Trail, North
Naples, FL

3501 PGA Boulevard
West Palm Beach, FL

8065 Beneva Road
Sarasota, FL

1502 N. Westshore Blvd.
Tampa, FL

Georgia

3445 Peachtree Road, N.E.
Atlanta, GA

1000 Abernathy Road
Atlanta, GA

Illinois

One North LaSalle Street
Chicago, IL

1415 West 22nd Street
Oak Brook, IL

1700 East Golf Road
Schaumburg, IL

3232 Lake Avenue
Wilmette, IL

Indiana

4729 East 82nd Street
Indianapolis, IN

Kansas

5400 College Boulevard
Overland Park, KS

Maine

Three Canal Plaza
Portland, ME

Maryland

7401 Wisconsin Avenue
Bethesda, MD

One W. Pennsylvania Ave.
Towson, MD

Massachusetts

801 Boylston Street
Boston, MA

155 Congress Street
Boston, MA

300 Granite Street
Braintree, MA

44 Mall Road
Burlington, MA

405 Cochituate Road
Framingham, MA

416 Belmont Street
Worcester, MA

Semiannual Report

Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC

Michigan

280 Old N. Woodward Ave.
Birmingham, MI

43420 Grand River Avenue
Novi, MI

29155 Northwestern Hwy.
Southfield, MI

Minnesota

7600 France Avenue South
Edina, MN

Missouri

8885 Ladue Road
Ladue, MO

New Jersey

150 Essex Street
Millburn, NJ

56 South Street
Morristown, NJ

501 Route 17, South
Paramus, NJ

3518 Route 1 North
Princeton, NJ

New York

1055 Franklin Avenue
Garden City, NY

37 West Jericho Turnpike
Huntington Station, NY

1271 Avenue of the Americas
New York, NY

61 Broadway
New York, NY

350 Park Avenue
New York, NY

North Carolina

4611 Sharon Road
Charlotte, NC

Ohio

3805 Edwards Road
Cincinnati, OH

28699 Chagrin Boulevard
Woodmere Village, OH

1324 Polaris Parkway
Columbus, OH

Oregon

16850 SW 72nd Avenue
Tigard, OR

Pennsylvania

600 West DeKalb Pike
King of Prussia, PA

1735 Market Street
Philadelphia, PA

12001 Perry Highway
Wexford, PA

Rhode Island

47 Providence Place
Providence, RI

Tennessee

6150 Poplar Avenue
Memphis, TN

Texas

10000 Research Boulevard
Austin, TX

4017 Northwest Parkway
Dallas, TX

12532 Memorial Drive
Houston, TX

2701 Drexel Drive
Houston, TX

400 East Las Colinas Blvd.
Irving, TX

14100 San Pedro
San Antonio, TX

19740 IH 45 North
Spring, TX

6005 West Park Boulevard
Plano, TX

Utah

215 South State Street
Salt Lake City, UT

Virginia

1861 International Drive
McLean, VA

Washington

411 108th Avenue, N.E.
Bellevue, WA

1518 6th Avenue
Seattle, WA

Washington, DC

1900 K Street, N.W.
Washington, DC

Wisconsin

595 North Barker Road
Brookfield, WI

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Investments
Money Management, Inc.

Fidelity Management & Research

(U.K.) Inc.

Fidelity Management & Research

(Far East) Inc.

Fidelity Investments Japan Limited

Fidelity International Investment
Advisors

Fidelity International Investment
Advisors (U.K.) Limited

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Shareholder
Servicing Agent

Fidelity Service Company, Inc.

Boston, MA

Custodian

JPMorgan Chase Bank

New York, NY

Fidelity's Asset Allocation Funds

Asset Manager^SM

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Asset Manager: Growth®

Asset Manager: Income®

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Income, 2000, 2005, 2010, 2015, 2020, 2025, 2030, 2035, 2040

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Asset Manager: Income®

Semiannual Report

March 31, 2004

(2_fidelity_logos) (Registered_Trademark)

Chairman's Message	<Click Here>	Ned Johnson's message to shareholders.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.

For a free copy of the fund's proxy voting guidelines visit www.fidelity.com/goto/proxyguidelines, call 1-800-544-8544, or visit the Securities and Exchange Commission (SEC's) website at www.sec.gov.

Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.

Other third party marks appearing herein are the property of their respective owners.

All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.

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Neither the fund nor Fidelity Distributors Corporation is a bank.

For more information on any Fidelity fund, including charges and expenses, call 1-800-544-6666 for a free prospectus. Read it carefully before you invest or send money.

Chairman's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

Best regards,

/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Semiannual Report

Investment Changes

Top Five Bond Issuers as of March 31, 2004
(with maturities greater than one year)	% of fund's net assets	% of fund's net assets 6 months ago
U.S. Treasury Obligations	12.3	7.8
Fannie Mae	7.6	10.8
Freddie Mac	1.0	3.0
Government National Mortgage Association	0.7	0.9
CS First Boston Mortgage Securities Corp.	0.3	0.5
	21.9

Quality Diversification (% of fund's net assets)
As of March 31, 2004 *		As of September 30, 2003 **
	U.S.Government and U.S.Government Agency Obligations 22.2%		U.S.Government and U.S.Government Agency Obligations 23.0%
	AAA,AA,A 6.9%		AAA,AA,A 7.6%
	BBB 5.7%		BBB 5.7%
	BB and Below 3.8%		BB and Below 5.8%
	Not Rated 0.0%		Not Rated 0.1%
	Equities 22.9%		Equities 23.5%
	Short-Term Investments and Net Other Assets 38.5%		Short-Term Investments and Net Other Assets 34.3%

We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. Percentages are adjusted for the effect of futures contracts, if applicable.

Top Five Stocks as of March 31, 2004
	% of fund's net assets	% of fund's net assets 6 months ago
Telefonaktiebolaget LM Ericsson ADR	0.6	0.3
AMR Corp.	0.5	0.6
Kohl's Corp.	0.5	0.0
America Movil SA de CV sponsored ADR	0.5	0.0
Lowe's Companies, Inc.	0.4	0.5
	2.5

Asset Allocation (% of fund's net assets)
As of March 31, 2004 *			As of September 30, 2003 **
	Stock class and equity futures 22.9%			Stock class and equity futures 23.4%
	Bond class 39.7%			Bond class 42.0%
	Short-term class 37.4%			Short-term class 34.6%
* Foreign investments		8.7%	** Foreign investments		5.7%

The information in the above tables is based on the combined investments of the fund and its pro-rata share of the investments of Fidelity's fixed-income central fund.

Semiannual Report

Investments March 31, 2004 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 18.6%
	Shares		Value (Note 1) (000s)
CONSUMER DISCRETIONARY - 2.3%
Auto Components - 0.1%
Modine Manufacturing Co.	40,000		$ 1,042
Hotels, Restaurants & Leisure - 0.1%
Royal Caribbean Cruises Ltd.	30,000		1,323
Media - 0.1%
Mediaset Spa	150,000		1,669
Multiline Retail - 0.7%
Barneys, Inc. warrants 4/1/08 (a)	420		11
Kohl's Corp. (a)	130,000		6,283
Nordstrom, Inc.	50,000		1,995
			8,289
Specialty Retail - 1.3%
AnnTaylor Stores Corp. (a)	30,000		1,284
Best Buy Co., Inc.	62,400		3,227
Big 5 Sporting Goods Corp. (a)	20,000		505
Dixons Group PLC	1,000,000		2,843
French Connection Group PLC	100,000		894
Lowe's Companies, Inc.	96,200		5,400
Williams-Sonoma, Inc. (a)	56,600		1,936
			16,089
Textiles Apparel & Luxury Goods - 0.0%
Polo Ralph Lauren Corp. Class A	8,500		291
TOTAL CONSUMER DISCRETIONARY			28,703
CONSUMER STAPLES - 0.1%
Food Products - 0.1%
SunOpta, Inc. (a)	96,300		957
ENERGY - 0.4%
Oil & Gas - 0.4%
Golar LNG Ltd. (Nasdaq) (a)	100,000		1,516
OMI Corp.	200,000		2,288
Tsakos Energy Navigation Ltd.	50,000		1,510
			5,314
FINANCIALS - 1.7%
Capital Markets - 0.6%
E*TRADE Group, Inc. (a)	150,000		2,003
Goldman Sachs Group, Inc.	21,400		2,233
Common Stocks - continued
	Shares		Value (Note 1) (000s)
FINANCIALS - continued
Capital Markets - continued
Knight Trading Group, Inc. (a)	150,000		$ 1,899
Morgan Stanley	22,700		1,301
			7,436
Commercial Banks - 0.4%
Banco Itau Holding Financeira SA (PN)	12,961,000		1,209
ICICI Bank Ltd. sponsored ADR	127,800		2,038
Silicon Valley Bancshares (a)	35,100		1,139
			4,386
Consumer Finance - 0.2%
Education Lending Group, Inc. (a)	50,000		791
MBNA Corp.	43,900		1,213
			2,004
Diversified Financial Services - 0.2%
CIT Group, Inc.	58,600		2,230
Insurance - 0.2%
Allianz AG sponsored ADR	165,000		1,802
Scottish Re Group Ltd.	49,500		1,197
			2,999
Thrifts & Mortgage Finance - 0.1%
W Holding Co., Inc.	76,500		1,430
TOTAL FINANCIALS			20,485
HEALTH CARE - 2.8%
Biotechnology - 1.7%
Angiotech Pharmaceuticals, Inc. (a)	52,600		1,284
Celgene Corp. (a)	80,000		3,812
Cephalon, Inc. (a)	70,000		4,012
Dendreon Corp. (a)	100,000		1,330
ImClone Systems, Inc. (a)	60,000		3,052
MedImmune, Inc. (a)	40,000		923
Millennium Pharmaceuticals, Inc. (a)	155,400		2,626
Myogen, Inc.	71,000		777
Protein Design Labs, Inc. (a)	60,000		1,429
Tanox, Inc. (a)	100,000		1,489
			20,734
Common Stocks - continued
	Shares		Value (Note 1) (000s)
HEALTH CARE - continued
Health Care Equipment & Supplies - 0.1%
Dade Behring Holdings, Inc. (a)	20,000		$ 890
Illumina, Inc. (a)	100,000		755
			1,645
Health Care Providers & Services - 0.6%
Caremark Rx, Inc. (a)	50,000		1,663
Cerner Corp. (a)	25,000		1,130
UnitedHealth Group, Inc.	60,000		3,866
			6,659
Pharmaceuticals - 0.4%
Elan Corp. PLC sponsored ADR (a)	50,000		1,031
Salix Pharmaceuticals Ltd. (a)	47,800		1,387
Sepracor, Inc. (a)	60,000		2,886
			5,304
TOTAL HEALTH CARE			34,342
INDUSTRIALS - 2.8%
Aerospace & Defense - 0.2%
Embraer - Empresa Brasileira de Aeronautica SA sponsored ADR	90,000		2,889
Air Freight & Logistics - 0.1%
CNF, Inc.	30,000		1,008
Airlines - 1.3%
AMR Corp. (a)	505,806		6,439
British Airways PLC ADR (a)	20,000		1,020
Continental Airlines, Inc. Class B (a)	400,000		5,012
easyJet PLC (a)	500,000		2,833
			15,304
Commercial Services & Supplies - 0.5%
Labor Ready, Inc. (a)	150,000		2,028
Monster Worldwide, Inc. (a)	100,200		2,625
Robert Half International, Inc. (a)	70,000		1,653
			6,306
Electrical Equipment - 0.1%
Fiberstars, Inc. (a)	40,900		345
Kumho Electric Co. Ltd.	30,200		1,311
			1,656
Common Stocks - continued
	Shares		Value (Note 1) (000s)
INDUSTRIALS - continued
Industrial Conglomerates - 0.0%
Cookson Group PLC (a)	500,000		$ 420
Machinery - 0.6%
Bodycote International PLC	300,000		749
Cummins, Inc.	70,300		4,109
Ingersoll-Rand Co. Ltd. Class A	30,000		2,030
			6,888
TOTAL INDUSTRIALS			34,471
INFORMATION TECHNOLOGY - 6.4%
Communications Equipment - 1.4%
Avaya, Inc. (a)	45,700		726
JDS Uniphase Corp. (a)	300,000		1,221
Motorola, Inc.	100,000		1,760
Nokia Corp. sponsored ADR	100,000		2,028
Powerwave Technologies, Inc. (a)	200,000		1,560
Research in Motion Ltd. (a)	18,400		1,718
Sonus Networks, Inc. (a)	150,000		557
Telefonaktiebolaget LM Ericsson ADR (a)	253,700		7,040
			16,610
Computers & Peripherals - 0.5%
Avid Technology, Inc. (a)	40,000		1,845
M-Systems Flash Disk Pioneers Ltd. (a)	115,700		2,358
PalmOne, Inc. (a)	100,000		2,136
			6,339
Electronic Equipment & Instruments - 0.4%
AU Optronics Corp. sponsored ADR	100,000		2,090
Hon Hai Precision Industries Co. Ltd.	400,000		1,730
Solectron Corp. (a)	219,600		1,214
TTM Technologies, Inc. (a)	30,000		370
			5,404
Internet Software & Services - 0.5%
Akamai Technologies, Inc. (a)	135,700		1,783
Blue Coat Systems, Inc. (a)	50,000		2,679
Yahoo!, Inc. (a)	40,000		1,944
			6,406
IT Services - 0.1%
Accenture Ltd. Class A (a)	30,000		744
Common Stocks - continued
	Shares		Value (Note 1) (000s)
INFORMATION TECHNOLOGY - continued
Semiconductors & Semiconductor Equipment - 2.7%
Agere Systems, Inc. Class A (a)	1,089,800		$ 3,498
Axcelis Technologies, Inc. (a)	150,000		1,668
Cohu, Inc.	60,000		1,119
Credence Systems Corp. (a)	180,000		2,138
Intersil Corp. Class A	204,000		4,547
Mattson Technology, Inc. (a)	50,000		598
PMC-Sierra, Inc. (a)	100,000		1,697
Samsung Electronics Co. Ltd.	8,000		4,004
Silicon Image, Inc. (a)	87,800		904
Silicon Laboratories, Inc. (a)	30,000		1,586
Skyworks Solutions, Inc. (a)	300,000		3,498
Teradyne, Inc. (a)	161,700		3,853
Texas Instruments, Inc.	60,000		1,753
Trident Microsystems, Inc. (a)	10,400		166
Ultratech, Inc. (a)	90,000		2,098
			33,127
Software - 0.8%
BEA Systems, Inc. (a)	189,200		2,414
Quest Software, Inc. (a)	257,400		4,208
Red Hat, Inc. (a)	100,000		2,286
VERITAS Software Corp. (a)	50,000		1,346
			10,254
TOTAL INFORMATION TECHNOLOGY			78,884
MATERIALS - 1.0%
Chemicals - 0.3%
Dow Chemical Co.	22,700		914
Georgia Gulf Corp.	87,800		2,647
			3,561
Containers & Packaging - 0.1%
Smurfit-Stone Container Corp. (a)	50,000		880
Metals & Mining - 0.3%
Anglo American PLC ADR	40,000		973
Breakwater Resources Ltd. (a)	500,000		225
Coeur d'Alene Mines Corp. (a)	213,500		1,495
Thyssenkrupp AG	40,000		745
			3,438
Common Stocks - continued
	Shares		Value (Note 1) (000s)
MATERIALS - continued
Paper & Forest Products - 0.3%
Bowater, Inc.	26,300		$ 1,147
Votorantim Celulose e Papel SA sponsored ADR	80,000		2,783
			3,930
TOTAL MATERIALS			11,809
TELECOMMUNICATION SERVICES - 1.0%
Diversified Telecommunication Services - 0.3%
PT Telkomunikasi Indonesia Tbk sponsored ADR	200,000		3,370
Wireless Telecommunication Services - 0.7%
America Movil SA de CV sponsored ADR	150,000		5,798
American Tower Corp. Class A (a)	175,700		1,994
Nextel Communications, Inc. Class A (a)	20,600		509
			8,301
TOTAL TELECOMMUNICATION SERVICES			11,671
UTILITIES - 0.1%
Electric Utilities - 0.0%
Progress Energy, Inc. warrants 12/31/07 (a)	9,200		0
Multi-Utilities & Unregulated Power - 0.1%
AES Corp. (a)	182,400		1,556
TOTAL COMMON STOCKS (Cost $191,267)		228,192
Nonconvertible Preferred Stocks - 0.2%

CONSUMER DISCRETIONARY - 0.2%
Automobiles - 0.2%
Porsche AG (non-vtg.)	3,000		1,815
Media - 0.0%
CSC Holdings, Inc.:
(depositary shares) Series M, 11.125%	920		96
Series H, 11.75%	1,715		179
Granite Broadcasting Corp. 12.75% pay-in-kind	285		140
			415
TOTAL CONSUMER DISCRETIONARY			2,230
Nonconvertible Preferred Stocks - continued
	Shares		Value (Note 1) (000s)
FINANCIALS - 0.0%
Commercial Banks - 0.0%
Chevy Chase Bank FSB Series C, 8.00%	2,235		$ 64
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $2,052)		2,294

Nonconvertible Bonds - 10.9%
	Principal Amount (000s)
CONSUMER DISCRETIONARY - 1.7%
Auto Components - 0.2%
DaimlerChrysler NA Holding Corp.:
4.05% 6/4/08	$ 345		349
4.75% 1/15/08	1,605		1,673
7.2% 9/1/09	300		341
Dana Corp. 6.5% 3/1/09	60		64
Stoneridge, Inc. 11.5% 5/1/12	175		208
United Components, Inc. 9.375% 6/15/13	60		65
Visteon Corp. 7% 3/10/14	100		99
			2,799
Automobiles - 0.1%
General Motors Corp. 8.25% 7/15/23	1,480		1,652
Hotels, Restaurants & Leisure - 0.3%
Argosy Gaming Co. 7% 1/15/14 (e)	220		229
Bally Total Fitness Holding Corp.:
9.875% 10/15/07	80		65
10.5% 7/15/11	45		42
Boyd Gaming Corp.:
7.75% 12/15/12	135		145
8.75% 4/15/12	105		116
Chumash Casino & Resort Enterprise 9% 7/15/10 (e)	210		232
Circus Circus Enterprises, Inc. 7.625% 7/15/13	65		71
Friendly Ice Cream Corp. 8.375% 6/15/12 (e)	120		123
Host Marriott LP 7.125% 11/1/13	290		300
ITT Corp. 7.375% 11/15/15	100		108
Mandalay Resort Group 9.375% 2/15/10	65		77
MGM MIRAGE:
5.875% 2/27/14	90		90
5.875% 2/27/14 (e)	140		140
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
CONSUMER DISCRETIONARY - continued
Hotels, Restaurants & Leisure - continued
Mohegan Tribal Gaming Authority:
8% 4/1/12	$ 130		$ 143
8.375% 7/1/11	110		122
MTR Gaming Group, Inc. 9.75% 4/1/10	120		128
Park Place Entertainment Corp. 7.875% 3/15/10	110		123
Royal Caribbean Cruises Ltd. 6.875% 12/1/13	285		298
Six Flags, Inc.:
8.875% 2/1/10	155		160
9.75% 4/15/13	100		106
Station Casinos, Inc. 6% 4/1/12 (e)	200		206
Sun International Hotels Ltd./Sun International North America, Inc. 8.875% 8/15/11	390		431
Town Sports International Holdings, Inc. 0% 2/1/14 (d)(e)	60		32
Town Sports International, Inc. 9.625% 4/15/11	195		206
Venetian Casino Resort LLC/Las Vegas Sands, Inc. 11% 6/15/10	185		212
			3,905
Household Durables - 0.2%
Beazer Homes USA, Inc. 6.5% 11/15/13 (e)	310		326
D.R. Horton, Inc. 6.875% 5/1/13	55		61
Juno Lighting, Inc. 11.875% 7/1/09	335		359
K. Hovnanian Enterprises, Inc.:
6.5% 1/15/14	45		46
8.875% 4/1/12	145		163
KB Home 7.75% 2/1/10	205		221
Sealy Mattress Co. 8.25% 6/15/14 (e)	170		170
Standard Pacific Corp.:
6.875% 5/15/11	55		58
7.75% 3/15/13	195		216
9.25% 4/15/12	155		181
Technical Olympic USA, Inc.:
7.5% 3/15/11 (e)	110		110
9% 7/1/10	125		136
WCI Communities, Inc. 7.875% 10/1/13	115		123
William Lyon Homes, Inc.:
7.5% 2/15/14 (e)	110		114
10.75% 4/1/13	325		384
			2,668
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
CONSUMER DISCRETIONARY - continued
Leisure Equipment & Products - 0.1%
The Hockey Co. 11.25% 4/15/09	$ 425		$ 476
Media - 0.6%
AMC Entertainment, Inc.:
8% 3/1/14 (e)	120		119
9.5% 2/1/11	126		132
AOL Time Warner, Inc. 7.625% 4/15/31	700		819
British Sky Broadcasting Group PLC (BSkyB) yankee 8.2% 7/15/09	750		905
Cablevision Systems Corp.:
5.66% 4/1/09 (e)(h)	200		200
8% 4/15/12 (e)	210		210
Cinemark, Inc. 0% 3/15/14 (d)(e)	240		150
Clear Channel Communications, Inc. 4.4% 5/15/11	350		349
Comcast Corp. 7.05% 3/15/33	500		556
Continental Cablevision, Inc. 9% 9/1/08	300		365
Corus Entertainment, Inc. 8.75% 3/1/12	140		154
CSC Holdings, Inc. 7.875% 2/15/18	110		118
EchoStar DBS Corp. 5.75% 10/1/08 (e)	255		263
Granite Broadcasting Corp. 9.75% 12/1/10 (e)	90		87
Gray Television, Inc. 9.25% 12/15/11	140		155
Houghton Mifflin Co.:
0% 10/15/13 (d)(e)	55		30
8.25% 2/1/11	125		128
9.875% 2/1/13	120		124
Innova S. de R.L. 9.375% 9/19/13	140		153
LBI Media, Inc. 10.125% 7/15/12	195		223
Liberty Media Corp. 5.7% 5/15/13	400		418
News America Holdings, Inc. 7.7% 10/30/25	990		1,191
PEI Holdings, Inc. 11% 3/15/10	145		167
Reader's Digest Association, Inc. 6.5% 3/1/11 (e)	160		165
Sinclair Broadcast Group, Inc. 8% 3/15/12	120		130
Spanish Broadcasting System, Inc. 9.625% 11/1/09	60		63
Telewest PLC 11% 10/1/07 (c)	265		167
TV Azteca SA de CV yankee 10.5% 2/15/07	60		62
Videotron LTEE 6.875% 1/15/14	60		62
			7,665
Multiline Retail - 0.0%
Barneys, Inc. 9% 4/1/08	420		433
Specialty Retail - 0.2%
Asbury Automotive Group, Inc. 9% 6/15/12	215		228
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
CONSUMER DISCRETIONARY - continued
Specialty Retail - continued
AutoNation, Inc. 9% 8/1/08	$ 160		$ 186
Boise Cascade Corp. 7.5% 2/1/08	135		148
J. Crew Intermediate LLC 0% 5/15/08 (d)	289		222
Nebraska Book Co., Inc. 8.625% 3/15/12 (e)	170		175
Sonic Automotive, Inc. 8.625% 8/15/13	175		189
Toys 'R' US, Inc. 7.875% 4/15/13	290		304
United Rentals North America, Inc.:
6.5% 2/15/12 (e)	55		54
7% 2/15/14 (e)	70		66
7.75% 11/15/13 (e)	310		301
			1,873
Textiles Apparel & Luxury Goods - 0.0%
Levi Strauss & Co.:
7% 11/1/06	80		60
11.625% 1/15/08	85		65
12.25% 12/15/12	60		45
			170
TOTAL CONSUMER DISCRETIONARY			21,641
CONSUMER STAPLES - 0.5%
Food & Staples Retailing - 0.1%
Rite Aid Corp.:
6% 12/15/05 (e)	230		228
6.875% 8/15/13	230		210
9.25% 6/1/13	60		63
9.5% 2/15/11	60		67
Safeway, Inc. 6.5% 3/1/11	1,000		1,116
			1,684
Food Products - 0.2%
Del Monte Corp. 9.25% 5/15/11	725		807
Doane Pet Care Co. 9.75% 5/15/07	290		252
Dole Food Co., Inc. 7.25% 6/15/10	85		87
Kraft Foods, Inc. 5.25% 6/1/07	1,000		1,078
Smithfield Foods, Inc.:
7.625% 2/15/08	65		70
7.75% 5/15/13	55		60
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
CONSUMER STAPLES - continued
Food Products - continued
Smithfield Foods, Inc.: - continued
8% 10/15/09	$ 25		$ 28
United Agriculture Products, Inc. 8.25% 12/15/11 (e)	60		63
			2,445
Tobacco - 0.2%
Altria Group, Inc. 7% 11/4/13	555		612
Philip Morris Companies, Inc.:
7% 7/15/05	600		632
7.75% 1/15/27	400		446
			1,690
TOTAL CONSUMER STAPLES			5,819
ENERGY - 0.5%
Energy Equipment & Services - 0.1%
Grant Prideco, Inc. 9% 12/15/09	70		79
Hanover Compressor Co.:
0% 3/31/07	120		92
8.625% 12/15/10	50		54
SESI LLC 8.875% 5/15/11	240		264
Weatherford International Ltd. 4.95% 10/15/13	400		406
			895
Oil & Gas - 0.4%
Amerada Hess Corp.:
6.65% 8/15/11	90		99
7.125% 3/15/33	235		247
7.375% 10/1/09	205		235
Chesapeake Energy Corp.:
7.5% 9/15/13	200		220
8.375% 11/1/08	215		237
9% 8/15/12	130		150
Empresa Nacional de Petroleo 6.75% 11/15/12 (e)	475		538
General Maritime Corp. 10% 3/15/13	340		381
Overseas Shipholding Group, Inc.:
7.5% 2/15/24	40		41
8.25% 3/15/13	390		429
Plains Exploration & Production Co. LP Series B, 8.75% 7/1/12	100		112
Range Resources Corp. 7.375% 7/15/13	155		161
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
ENERGY - continued
Oil & Gas - continued
Teekay Shipping Corp. 8.875% 7/15/11	$ 410		$ 476
The Coastal Corp.:
6.375% 2/1/09	125		103
6.5% 5/15/06	80		74
6.5% 6/1/08	50		42
7.5% 8/15/06	210		195
7.75% 6/15/10	285		247
7.75% 10/15/35	180		140
9.625% 5/15/12	735		691
Western Oil Sands, Inc. 8.375% 5/1/12	270		319
			5,137
TOTAL ENERGY			6,032
FINANCIALS - 3.5%
Capital Markets - 0.2%
Bank of New York Co., Inc.:
3.4% 3/15/13 (h)	360		359
4.25% 9/4/12 (h)	415		428
Morgan Stanley 4.75% 4/1/14	1,750		1,704
			2,491
Commercial Banks - 0.3%
Bank of America Corp. 7.4% 1/15/11	500		600
Chevy Chase Bank FSB 6.875% 12/1/13	95		98
Export-Import Bank of Korea:
4.125% 2/10/09 (e)	170		173
5.25% 2/10/14 (e)	615		637
Korea Development Bank 3.875% 3/2/09	750		756
Wachovia Corp. 3.625% 2/17/09	900		915
			3,179
Consumer Finance - 0.5%
Capital One Bank:
4.875% 5/15/08	350		369
6.5% 6/13/13	470		511
6.875% 2/1/06	125		135
Ford Motor Credit Co. 7.375% 10/28/09	775		851
General Electric Capital Corp. 3.5% 5/1/08	500		511
General Motors Acceptance Corp. 7.75% 1/19/10	1,680		1,905
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
FINANCIALS - continued
Consumer Finance - continued
Household Finance Corp.:
6.375% 10/15/11	$ 650		$ 737
6.375% 11/27/12	455		515
6.75% 5/15/11	350		404
Household International, Inc. 8.875% 2/15/08	525		586
MBNA Corp. 6.25% 1/17/07	280		307
			6,831
Diversified Financial Services - 1.6%
Ahold Finance USA, Inc.:
6.25% 5/1/09	50		51
8.25% 7/15/10	275		303
American Airlines, Inc. pass thru trust certificates:
6.817% 5/23/11	300		275
6.977% 11/23/22	24		22
7.324% 4/15/11	55		48
7.377% 5/23/19	192		146
7.379% 5/23/16	174		132
7.8% 4/1/08	130		122
8.608% 10/1/12	40		38
Cadbury Schweppes U.S. Finance LLC 3.875% 10/1/08 (e)	385		392
Cellu Tissue Holdings, Inc. 9.75% 3/15/10 (e)	90		89
Charter Communications Holding II LLC/Charter Communications Holdings II Capital Corp. 10.25% 9/15/10 (e)	55		57
Charter Communications Holdings LLC/Charter Communications Holdings Capital Corp. 8.625% 4/1/09	85		71
Citigroup, Inc. 7.25% 10/1/10	500		595
Continental Airlines, Inc. pass thru trust certificates:
6.748% 9/15/18	15		13
6.795% 8/2/18	47		41
6.9% 1/2/17	114		96
6.954% 2/2/11	21		18
7.73% 9/15/12	35		28
7.82% 4/15/15	44		37
8.307% 4/2/18	47		42
8.321% 11/1/06	15		14
Dana Credit Corp. 8.375% 8/15/07 (e)	82		90
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
FINANCIALS - continued
Diversified Financial Services - continued
Delta Air Lines, Inc. pass thru trust certificates:
7.299% 9/18/06	$ 50		$ 42
7.57% 11/18/10	790		787
7.779% 1/2/12	75		57
Deutsche Telekom International Finance BV:
8.5% 6/15/10	600		737
8.75% 6/15/30	500		656
Dex Media West LLC/Dex Media West Finance Co.:
8.5% 8/15/10 (e)	80		88
9.875% 8/15/13 (e)	90		100
FIMEP SA 10.5% 2/15/13	210		244
Gerdau AmeriSteel Corp./GUSAP Partners 10.375% 7/15/11	180		204
Goldman Sachs Capital I 6.345% 2/15/34	800		823
Hilcorp Energy I LP/Hilcorp Finance Co. 10.5% 9/1/10 (e)	185		205
IOS Capital LLC 7.25% 6/30/08	115		126
Ispat Inland ULC 9.75% 4/1/14 (e)	275		285
Jostens Holding Corp. 0% 12/1/13 (d)	140		94
Leucadia National Corp.:
7% 8/15/13	190		197
7% 8/15/13 (e)	80		83
Level 3 Financing, Inc. 10.75% 10/15/11 (e)	145		141
Midland Funding Corp. II 11.75% 7/23/05	179		189
Mizuho Financial Group Cayman Ltd. 5.79% 4/15/14 (e)	930		954
Mobile Telesystems Finance SA 8.375% 10/14/10 (e)	40		42
MSW Energy Holding LLC/MSW Energy Finance Co., Inc. 8.5% 9/1/10	40		44
MSW Energy Holdings II LLC/MSW Finance Co. II, Inc. 7.375% 9/1/10 (e)	120		127
National Beef Packing Co. LLC/National Beef Finance Corp. 10.5% 8/1/11 (e)	125		129
Nexstar Finance, Inc. 7% 1/15/14 (e)	70		69
Northern Telecom Capital Corp.:
7.4% 6/15/06	70		73
7.875% 6/15/26	60		62
Northwest Airlines, Inc. pass thru trust certificates:
7.068% 7/2/17	58		50
7.67% 1/2/15	34		30
Pemex Project Funding Master Trust 7.375% 12/15/14	840		935
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
FINANCIALS - continued
Diversified Financial Services - continued
Petronas Capital Ltd.:
7% 5/22/12 (e)	$ 1,000		$ 1,162
7.875% 5/22/22 (e)	1,100		1,323
Prime Property Funding II 6.25% 5/15/07	435		481
Qwest Capital Funding, Inc.:
7% 8/3/09	300		264
7.75% 8/15/06	940		945
Rabobank Capital Funding Trust II 5.26% 12/31/49 (e)(h)	465		482
Sensus Metering Systems, Inc. 8.625% 12/15/13 (e)	125		123
Ship Finance International Ltd. 8.5% 12/15/13 (e)	545		538
Sprint Capital Corp.:
6.125% 11/15/08	275		303
6.875% 11/15/28	585		608
Telecom Italia Capital:
4% 11/15/08 (e)	270		276
5.25% 11/15/13 (e)	270		278
TRW Automotive Acquisition Corp.:
9.375% 2/15/13	36		41
11% 2/15/13	26		31
U.S. West Capital Funding, Inc. 6.375% 7/15/08	295		263
Universal City Development Partners Ltd./UCDP Finance, Inc. 11.75% 4/1/10	320		371
Verizon Global Funding Corp. 7.25% 12/1/10	1,050		1,237
Western Financial Bank 9.625% 5/15/12	420		479
WH Holdings Ltd./WH Capital Corp. 9.5% 4/1/11 (e)	50		52
Xerox Capital Trust I 8% 2/1/27	265		261
			19,811
Insurance - 0.3%
Crum & Forster Holdings Corp. 10.375% 6/15/13 (e)	225		253
Oil Insurance Ltd. 5.15% 8/15/33 (e)(h)	650		675
Principal Life Global Funding I:
5.125% 6/28/07 (e)	1,800		1,934
6.25% 2/15/12 (e)	505		573
			3,435
Real Estate - 0.5%
CarrAmerica Realty Corp. 5.25% 11/30/07	500		538
CenterPoint Properties Trust:
4.75% 8/1/10	1,200		1,241
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
FINANCIALS - continued
Real Estate - continued
CenterPoint Properties Trust: - continued
6.75% 4/1/05	$ 490		$ 510
EOP Operating LP 7.75% 11/15/07	1,860		2,166
Gables Realty LP 5.75% 7/15/07	250		271
iStar Financial, Inc. 6.5% 12/15/13	120		126
LNR Property Corp.:
7.25% 10/15/13 (e)	175		183
7.625% 7/15/13	100		107
Mack-Cali Realty LP 7.25% 3/15/09	200		232
Omega Healthcare Investors, Inc. 7% 4/1/14 (e)	140		144
Senior Housing Properties Trust:
7.875% 4/15/15	130		140
8.625% 1/15/12	245		278
			5,936
Thrifts & Mortgage Finance - 0.1%
Countrywide Home Loans, Inc. 4% 3/22/11	300		297
Independence Community Bank Corp. 3.75% 4/1/14 (h)	225		224
Washington Mutual, Inc. 4.625% 4/1/14	600		588
			1,109
TOTAL FINANCIALS			42,792
HEALTH CARE - 0.1%
Health Care Equipment & Supplies - 0.0%
Fisher Scientific International, Inc. 8% 9/1/13	120		134
Health Care Providers & Services - 0.1%
AmeriPath, Inc.:
10.5% 4/1/13	160		163
10.5% 4/1/13 (e)	140		143
Concentra Operating Corp. 9.5% 8/15/10	80		89
Genesis HealthCare Corp. 8% 10/15/13 (e)	165		174
Mariner Health Care, Inc. 8.25% 12/15/13 (e)	125		128
PacifiCare Health Systems, Inc. 10.75% 6/1/09	273		319
Psychiatric Solutions, Inc. 10.625% 6/15/13	70		80
Tenet Healthcare Corp. 7.375% 2/1/13	255		229
			1,325
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
HEALTH CARE - continued
Pharmaceuticals - 0.0%
Biovail Corp. yankee 7.875% 4/1/10	$ 150		$ 146
TOTAL HEALTH CARE			1,605
INDUSTRIALS - 0.7%
Aerospace & Defense - 0.0%
BE Aerospace, Inc.:
8% 3/1/08	235		212
9.5% 11/1/08	115		110
Orbital Sciences Corp. 9% 7/15/11	95		104
			426
Airlines - 0.0%
AMR Corp. 9% 8/1/12	235		200
Continental Airlines, Inc.:
7.875% 7/2/18	180		179
8% 12/15/05	5		5
Delta Air Lines, Inc. 7.9% 12/15/09	205		136
			520
Building Products - 0.1%
FastenTech, Inc. 11.5% 5/1/11 (e)	180		201
Jacuzzi Brands, Inc. 9.625% 7/1/10	155		171
Nortek Holdings, Inc. 0% 5/15/11 (d)(e)	210		156
Nortek, Inc. 4.17% 12/31/10 (e)(h)	110		110
			638
Commercial Services & Supplies - 0.1%
Allied Waste North America, Inc.:
6.125% 2/15/14 (e)	100		97
7.875% 1/1/09	13		14
7.875% 4/15/13	55		60
9.25% 9/1/12	155		176
American Color Graphics, Inc. 10% 6/15/10	20		18
Browning-Ferris Industries, Inc. 6.375% 1/15/08	260		265
			630
Construction & Engineering - 0.0%
Amsted Industries, Inc. 10.25% 10/15/11 (e)	230		258
Electrical Equipment - 0.0%
General Cable Corp. 9.5% 11/15/10 (e)	110		120
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
INDUSTRIALS - continued
Industrial Conglomerates - 0.3%
Tyco International Group SA yankee:
6.375% 10/15/11	$ 125		$ 137
6.75% 2/15/11	2,190		2,439
6.875% 1/15/29	600		630
			3,206
Machinery - 0.2%
AGCO Corp. 8.5% 3/15/06	145		145
Columbus McKinnon Corp. 10% 8/1/10	30		32
Cummins, Inc. 5.65% 3/1/98	255		184
Dresser, Inc. 9.375% 4/15/11	405		441
Dunlop Standard Aerospace Holdings PLC yankee 11.875% 5/15/09	950		1,012
Invensys PLC 9.875% 3/15/11 (e)	255		261
Trinity Industries, Inc. 6.5% 3/15/14 (e)	85		85
			2,160
Marine - 0.0%
OMI Corp. 7.625% 12/1/13	130		135
Road & Rail - 0.0%
Kansas City Southern Railway Co. 7.5% 6/15/09	65		67
TFM SA de CV yankee:
10.25% 6/15/07	35		36
11.75% 6/15/09	130		131
			234
TOTAL INDUSTRIALS			8,327
INFORMATION TECHNOLOGY - 0.4%
Communications Equipment - 0.1%
Corning, Inc.:
5.9% 3/15/14	150		149
6.2% 3/15/16	130		129
L-3 Communications Corp. 6.125% 1/15/14 (e)	130		133
Lucent Technologies, Inc. 6.45% 3/15/29	175		148
Motorola, Inc. 6.5% 11/15/28	370		376
			935
Computers & Peripherals - 0.1%
NCR Corp. 7.125% 6/15/09	895		1,022
Electronic Equipment & Instruments - 0.1%
Flextronics International Ltd. 6.5% 5/15/13	240		251
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
INFORMATION TECHNOLOGY - continued
Electronic Equipment & Instruments - continued
Ingram Micro, Inc. 9.875% 8/15/08	$ 165		$ 184
PerkinElmer, Inc. 8.875% 1/15/13	385		444
Solectron Corp.:
7.375% 3/1/06	185		193
9.625% 2/15/09	50		55
			1,127
IT Services - 0.1%
Dex Media, Inc.:
0% 11/15/13 (d)(e)	260		166
0% 11/15/13 (d)(e)	530		339
8% 11/15/13 (e)	145		144
Iron Mountain, Inc.:
6.625% 1/1/16	155		152
8.625% 4/1/13	35		38
			839
Office Electronics - 0.0%
Xerox Corp.:
7.125% 6/15/10	195		205
7.2% 4/1/16	105		108
7.625% 6/15/13	170		181
			494
Semiconductors & Semiconductor Equipment - 0.0%
AMI Semiconductor, Inc. 10.75% 2/1/13	91		106
Amkor Technology, Inc.:
7.125% 3/15/11 (e)	270		270
7.75% 5/15/13	185		189
Viasystems, Inc. 10.5% 1/15/11 (e)	120		134
			699
TOTAL INFORMATION TECHNOLOGY			5,116
MATERIALS - 1.0%
Chemicals - 0.3%
Airgas, Inc. 6.25% 7/15/14 (e)	120		124
Berry Plastics Corp. 10.75% 7/15/12	410		465
Equistar Chemicals LP/Equistar Funding Corp.:
8.75% 2/15/09	75		77
10.125% 9/1/08	105		113
10.625% 5/1/11	490		529
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
MATERIALS - continued
Chemicals - continued
HMP Equity Holdings Corp. 0% 5/15/08 (e)	$ 205		$ 109
Huntsman ICI Chemicals LLC 10.125% 7/1/09	115		116
Huntsman International LLC 9.875% 3/1/09	285		310
Lyondell Chemical Co.:
9.625% 5/1/07	75		78
9.875% 5/1/07	75		78
Millennium America, Inc.:
9.25% 6/15/08	300		321
9.25% 6/15/08 (e)	70		75
Nalco Co.:
7.75% 11/15/11 (e)	100		104
8.875% 11/15/13 (e)	100		104
NOVA Chemicals Corp. 6.5% 1/15/12 (e)	105		108
Pliant Corp. 0% 6/15/09 (d)(e)	290		232
			2,943
Construction Materials - 0.0%
Texas Industries, Inc. 10.25% 6/15/11	340		386
U.S. Concrete, Inc. 8.375% 4/1/14 (e)	100		103
			489
Containers & Packaging - 0.1%
Anchor Glass Container Corp. 11% 2/15/13	235		271
BWAY Corp. 10% 10/15/10	80		86
Crown European Holdings SA 10.875% 3/1/13	135		157
Graphic Packaging International, Inc.:
8.5% 8/15/11	100		112
9.5% 8/15/13	100		114
Owens-Brockway Glass Container, Inc. 8.875% 2/15/09	115		124
Owens-Illinois, Inc.:
7.35% 5/15/08	65		64
7.5% 5/15/10	145		140
7.8% 5/15/18	255		235
8.1% 5/15/07	270		275
Sealed Air Corp. 5.625% 7/15/13 (e)	105		110
			1,688
Metals & Mining - 0.2%
AK Steel Corp.:
7.75% 6/15/12	70		62
7.875% 2/15/09	70		63
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
MATERIALS - continued
Metals & Mining - continued
Allegheny Ludlum Corp. 6.95% 12/15/25	$ 120		$ 108
Allegheny Technologies, Inc. 8.375% 12/15/11	215		216
California Steel Industries, Inc. 6.125% 3/15/14 (e)	70		70
Corporacion Nacional del Cobre (Codelco) 6.375% 11/30/12 (e)	260		290
CSN Islands VII Corp. 10.75% 9/12/08 (e)	180		191
CSN Islands VIII Corp. 9.75% 12/16/13 (e)	120		118
Falconbridge Ltd. yankee 7.35% 6/5/12	500		585
Freeport-McMoRan Copper & Gold, Inc.:
6.875% 2/1/14 (e)	195		190
10.125% 2/1/10	180		206
Peabody Energy Corp.:
5.875% 4/15/16	90		90
6.875% 3/15/13	190		205
Steel Dynamics, Inc.:
9.5% 3/15/09	70		78
9.5% 3/15/09 (e)	70		78
			2,550
Paper & Forest Products - 0.4%
Ainsworth Lumber Co. Ltd. 6.75% 3/15/14 (e)	140		141
Boise Cascade Corp. 7.68% 3/29/06	830		882
Bowater, Inc.:
4.11% 3/15/10 (h)	150		149
6.5% 6/15/13	55		53
Buckeye Technologies, Inc. 8.5% 10/1/13	135		145
Georgia-Pacific Corp.:
8% 1/15/14	185		206
8% 1/15/24 (e)	125		133
8.125% 5/15/11	310		353
8.875% 5/15/31	65		73
9.5% 12/1/11	140		168
International Paper Co.:
4.25% 1/15/09	120		123
5.5% 1/15/14	305		316
5.85% 10/30/12	320		344
Norske Skog Canada Ltd.:
7.375% 3/1/14 (e)	70		72
8.625% 6/15/11	235		251
Stone Container Corp.:
8.375% 7/1/12	130		141
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
MATERIALS - continued
Paper & Forest Products - continued
Stone Container Corp.: - continued
9.75% 2/1/11	$ 255		$ 284
Tembec Industries, Inc.:
7.75% 3/15/12	130		125
8.5% 2/1/11	175		175
yankee 8.625% 6/30/09	115		115
			4,249
TOTAL MATERIALS			11,919
TELECOMMUNICATION SERVICES - 1.0%
Diversified Telecommunication Services - 0.8%
AT&T Broadband Corp. 8.375% 3/15/13	400		497
AT&T Corp. 8.75% 11/15/31	300		354
BellSouth Corp. 6% 10/15/11	480		532
Centennial Cellular Operating Co. LLC/Centennial Finance Corp. 10.75% 12/15/08	302		308
Cincinnati Bell, Inc. 8.375% 1/15/14	80		78
Citizens Communications Co.:
7.625% 8/15/08	95		100
9% 8/15/31	50		53
9.25% 5/15/11	45		50
Empresa Brasil de Telecomm SA 11% 12/15/08 (e)	245		265
Eschelon Operating Co. 8.375% 3/15/10 (e)	230		196
France Telecom SA:
8.75% 3/1/11	510		623
9.5% 3/1/31	440		595
GCI, Inc. 7.25% 2/15/14 (e)	280		273
Level 3 Communications, Inc.:
9.125% 5/1/08	20		16
10.5% 12/1/08	250		205
MCI Communications Corp.:
6.5% 4/15/10 (c)	215		171
6.95% 8/15/06 (c)	220		175
7.75% 3/15/24 (c)	125		99
7.75% 3/23/25 (c)	215		170
8.25% 1/20/23 (c)	60		47
Primus Telecom Holding, Inc. 8% 1/15/14 (e)	175		168
Qwest Communications International, Inc. 7.25% 2/15/11 (e)	140		133
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
TELECOMMUNICATION SERVICES - continued
Diversified Telecommunication Services - continued
Qwest Services Corp.:
13.5% 12/15/10 (e)	$ 260		$ 302
14% 12/15/14 (e)	308		370
SBC Communications, Inc. 5.875% 2/1/12	575		628
Telefonica Europe BV 7.75% 9/15/10	500		604
Telenet Group Holding NV 0% 6/15/14 (d)(e)	325		198
Telewest Communications PLC yankee 11.25% 11/1/08 (c)	35		22
TELUS Corp. yankee 8% 6/1/11	1,375		1,656
Triton PCS, Inc.:
8.75% 11/15/11	70		66
9.375% 2/1/11	155		149
U.S. West Communications:
6.875% 9/15/33	150		133
7.2% 11/10/26	90		83
7.5% 6/15/23	135		124
			9,443
Wireless Telecommunication Services - 0.2%
America Movil SA de CV:
4.125% 3/1/09 (e)	335		336
5.5% 3/1/14 (e)	305		304
American Cellular Corp. 10% 8/1/11	170		163
Crown Castle International Corp. 7.5% 12/1/13	120		118
DirecTV Holdings LLC/DirecTV Financing, Inc. 8.375% 3/15/13	75		86
Dobson Communications Corp. 8.875% 10/1/13	285		222
Millicom International Cellular SA 10% 12/1/13 (e)	540		564
Nextel Communications, Inc.:
6.875% 10/31/13	265		282
7.375% 8/1/15	85		92
Rogers Wireless, Inc.:
6.375% 3/1/14 (e)	290		293
9.625% 5/1/11	360		440
Western Wireless Corp. 9.25% 7/15/13	185		190
			3,090
TOTAL TELECOMMUNICATION SERVICES			12,533
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
UTILITIES - 1.5%
Electric Utilities - 1.0%
AES Gener SA 7.5% 3/25/14 (e)	$ 45		$ 46
CMS Energy Corp.:
7.5% 1/15/09	140		144
8.5% 4/15/11	300		322
8.9% 7/15/08	60		65
9.875% 10/15/07	90		99
Dominion Resources, Inc. 6.25% 6/30/12	685		757
Duke Capital Corp.:
4.37% 3/1/09	305		308
6.75% 2/15/32	2,140		2,228
Exelon Corp. 6.75% 5/1/11	450		515
Exelon Generation Co. LLC 5.35% 1/15/14 (e)	650		670
FirstEnergy Corp. 7.375% 11/15/31	1,955		2,179
Illinois Power Co. 7.5% 6/15/09	580		655
MidAmerican Energy Holdings, Inc.:
4.625% 10/1/07	315		331
5.875% 10/1/12	345		373
Monongahela Power Co. 5% 10/1/06	375		383
Pacific Gas & Electric Co.:
3.6% 3/1/09	100		100
4.8% 3/1/14	155		156
6.05% 3/1/34	565		571
Progress Energy, Inc.:
6.85% 4/15/12	420		480
7.1% 3/1/11	245		283
PSI Energy, Inc. 6.65% 6/15/06	180		197
Public Service Co. of Colorado 7.875% 10/1/12	455		568
TECO Energy, Inc.:
7% 5/1/12	120		126
7.2% 5/1/11	100		107
			11,663
Gas Utilities - 0.1%
El Paso Energy Corp.:
6.75% 5/15/09	105		93
6.95% 12/15/07	125		114
Ras Laffan Liquid Natural Gas Co. Ltd. yankee 8.294% 3/15/14 (e)	610		732
Sonat, Inc.:
6.625% 2/1/08	250		219
Nonconvertible Bonds - continued
	Principal Amount (000s)		Value (Note 1) (000s)
UTILITIES - continued
Gas Utilities - continued
Sonat, Inc.: - continued
6.75% 10/1/07	$ 180		$ 161
7.625% 7/15/11	200		173
			1,492
Multi-Utilities & Unregulated Power - 0.4%
AES Corp.:
7.75% 3/1/14	270		268
8.375% 8/15/07	65		66
8.5% 11/1/07	164		168
8.75% 6/15/08	200		210
8.75% 5/15/13 (e)	245		269
8.875% 2/15/11	269		287
9% 5/15/15 (e)	105		116
9.375% 9/15/10	34		37
9.5% 6/1/09	76		83
10% 12/12/05 (e)	79		79
Constellation Energy Group, Inc. 6.35% 4/1/07	660		728
NRG Energy, Inc. 8% 12/15/13 (e)	300		310
Williams Companies, Inc.:
7.125% 9/1/11	1,055		1,108
7.5% 1/15/31	350		338
7.875% 9/1/21	245		248
8.125% 3/15/12	85		94
8.625% 6/1/10	220		242
			4,651
TOTAL UTILITIES			17,806
TOTAL NONCONVERTIBLE BONDS (Cost $125,113)		133,590
U.S. Government and Government Agency Obligations - 14.6%

U.S. Government Agency Obligations - 2.0%
Fannie Mae:
4% 9/2/08	600		623
5.25% 8/1/12	2,060		2,187
6.25% 2/1/11	5,915		6,730
U.S. Government and Government Agency Obligations - continued
	Principal Amount (000s)		Value (Note 1) (000s)
U.S. Government Agency Obligations - continued
Freddie Mac:
5.25% 11/5/12	$ 5,985		$ 6,205
5.875% 3/21/11	4,760		5,304
Government Loan Trusts (assets of Trust guaranteed by U.S. Government through Agency for International Development) Series 1-B, 8.5% 4/1/06	1,815		1,944
Private Export Funding Corp. secured 6.86% 4/30/04	68		69
U.S. Department of Housing and Urban Development Government guaranteed participation certificates Series 1996-A, 7.63% 8/1/14	1,000		1,075
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS			24,137
U.S. Treasury Inflation Protected Obligations - 0.2%
U.S. Treasury Inflation-Indexed Bonds 3.625% 4/15/28	2,490		3,281
U.S. Treasury Obligations - 12.4%
U.S. Treasury Bills, yield at date of purchase 0.87% to 0.94% 4/22/04 to 6/10/04 (g)	3,750		3,744
U.S. Treasury Bonds:
7.875% 2/15/21	12,160		16,818
10.375% 11/15/09	100,000		105,675
U.S. Treasury Notes:
3.25% 8/15/07 (f)	13,500		13,978
4.375% 5/15/07	8,800		9,413
6.5% 2/15/10	1,775		2,104
TOTAL U.S. TREASURY OBLIGATIONS			151,732
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $178,150)		179,150
U.S. Government Agency - Mortgage Securities - 7.0%

Fannie Mae - 6.5%
4% 9/1/18 to 3/1/19	8,499		8,448
5% 7/1/18	9,197		9,463
5% 4/1/34 (f)	4,000		4,019
5.5% 12/1/13 to 10/1/32	7,965		8,297
5.5% 4/20/19 (f)	8,250		8,590
5.5% 4/1/34 (f)	6,375		6,531
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Fannie Mae - continued
6% 4/1/09 to 12/1/24	$ 2,037		$ 2,138
6% 4/1/34 (f)	93		97
6.5% 5/1/13 to 10/1/33	15,957		16,807
6.5% 4/1/19 (f)	4,239		4,509
6.5% 4/1/34 (f)	2,840		2,982
7% 1/1/13 to 8/1/32 (k)	4,926		5,241
7% 4/1/19 (f)	193		207
7.5% 10/1/09 to 11/1/31	1,616		1,733
11.5% 11/1/15	71		81
TOTAL FANNIE MAE			79,143
Freddie Mac - 0.0%
5% 11/1/33	99		99
7.5% 8/1/28 to 8/1/31	177		191
8.5% 3/1/22 to 5/1/22	5		6
12% 11/1/19	27		31
TOTAL FREDDIE MAC			327
Government National Mortgage Association - 0.5%
6.5% 11/15/08 to 3/15/29	2,796		2,970
7% 3/15/28 to 4/15/32	755		805
7% 4/1/34 (f)	1,500		1,598
7.5% 5/15/22 to 8/15/28	704		760
8.5% 8/15/29 to 11/15/29	387		424
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION			6,557
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES (Cost $84,418)		86,027
Asset-Backed Securities - 2.2%

Accredited Mortgage Loan Trust Series 2003-2 Class A1, 4.23% 10/25/33	577		584
AmeriCredit Automobile Receivables Trust:
Series 2003-AM Class A4B, 1.57% 11/6/09 (h)	300		302
Series 2003-BX:
Class A4A, 2.72% 1/6/10	270		274
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (Note 1) (000s)
AmeriCredit Automobile Receivables Trust: - continued
Class A4B, 1.48% 1/6/10 (h)	$ 200		$ 202
Series 2003-DM Class A4, 2.84% 8/6/10	420		425
Ameriquest Mortgage Securities, Inc.:
Series 2002-AR1 Class M2, 2.39% 9/25/32 (h)	105		106
Series 2003-3 Class M1, 1.89% 3/25/33 (h)	330		332
Amortizing Residential Collateral Trust:
Series 2002-BC3N Class B2, 7% 6/25/32 (e)	24		24
Series 2002-BC6 Class A2, 1.44% 8/25/32 (h)	891		893
Series 2002-BC7 Class M1, 1.89% 10/25/32 (h)	1,790		1,803
Argent Securities, Inc. Series 2003-W3 Class M2, 2.89% 9/25/33 (h)	3,000		3,083
Asset Backed Securities Corp. Home Equity Loan Trust Series 2003-HE2:
Class A2, 1.47% 4/15/33 (h)	466		468
Class M1, 1.99% 4/15/33 (h)	390		396
Associates Automobile Receivables Trust Series 2000-1 Class B, 7.83% 8/15/07	549		561
Bayview Financial Asset Trust Series 2000-F Class A, 1.59% 9/28/43 (h)	2,659		2,670
Capital One Auto Finance Trust Series 2003-A Class A4B, 1.37% 1/15/10 (h)	580		584
Capital One Master Trust:
Series 2002-3A Class B, 4.55% 2/15/08	1,800		1,842
Series 2002-4 Class A, 4.9% 3/15/10	510		548
Capital One Multi-Asset Execution Trust:
Series 2002-B1 Class B1, 1.77% 7/15/08 (h)	690		694
Series 2003-2B Class B2, 3.5% 2/17/09	360		369
Series 2003-B1 Class B1, 2.26% 2/17/09 (h)	685		698
CDC Mortgage Capital Trust Series 2003-HE2 Class M2, 2.99% 10/25/33 (h)	160		165
Chase Credit Card Master Trust Series 2003-6 Class B, 1.44% 2/15/11 (h)	565		569
Countrywide Home Loans, Inc. Series 2002-6 Class AV1, 1.52% 5/25/33 (h)	762		764
First USA Secured Note Trust Series 2001-3 Class C, 2.14% 11/19/08 (e)(h)	690		698
Ford Credit Auto Owner Trust Series 2001-B Class B, 5.71% 9/15/05	405		410
GSAMP NIMS Trust Series 2002-HE2N Class NOTE, 8.25% 10/20/32 (e)	67		67
Home Equity Asset Trust Series 2003-4:
Class M1, 1.89% 10/25/33 (h)	215		218
Class M2, 2.99% 10/25/33 (h)	255		258
Asset-Backed Securities - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Home Equity Asset Trust NIMS Trust:
Series 2002-3N Class A, 8% 3/25/33 (e)	$ 11		$ 11
Series 2003-2N Class A, 8% 9/27/33 (e)	105		105
Household Private Label Credit Card Master Note Trust I:
Series 2002-1 Class A, 5.5% 1/18/11	550		596
Series 2002-3 Class B, 2.34% 9/15/09 (h)	400		406
Long Beach Mortgage Loan Trust Series 2003-3:
Class M1, 1.84% 7/25/33 (h)	470		475
Class M2, 2.94% 7/25/33 (h)	240		247
MBNA Credit Card Master Note Trust:
Series 2001-B1 Class B1, 1.465% 10/15/08 (h)	500		501
Series 2001-B2 Class B2, 1.45% 1/15/09 (h)	500		502
Series 2002-B2 Class B2, 1.47% 10/15/09 (h)	500		503
Morgan Stanley ABS Capital I, Inc.:
Series 2002-HE3 Class M1, 2.19% 12/27/32 (h)	115		117
Series 2002-NC6N Class NOTE, 9.5% 9/25/32 (e)	12		12
Series 2003-HE1 Class M2, 2.99% 5/25/33 (h)	345		350
Series 2003-NC6 Class M2, 3.04% 6/27/33 (h)	800		818
Morgan Stanley Dean Witter Capital I Trust:
Series 2001-AM1 Class M2, 2.49% 2/25/32 (h)	410		414
Series 2002-NC3 Class M1, 1.81% 8/25/32 (h)	90		91
Series 2002-NC5N Class NOTE, 9.5% 9/25/32 (e)	53		53
Morgan Stanley Dean Witter Capital I, Inc. Series 2003-NC2N Class NOTE, 9.5% 12/25/32 (e)	192		192
New Century Home Equity Loan Trust Series 2003-2 Class A2, 1.52% 1/25/33 (h)	388		389
Railcar Trust Series 1992-1 Class A, 7.75% 6/1/04	2		2
Residential Asset Mortgage Products, Inc. Series 2003-RZ2 Class A1, 3.6% 4/25/33	418		417
Salomon Brothers Mortgage Securities VII, Inc. Series 2003-UP1 Class A, 3.45% 4/25/32 (e)	330		330
Structured Asset Securities Corp. Series 2004-GEL1 Class A, 1.45% 2/25/34 (h)	147		147
TOTAL ASSET-BACKED SECURITIES (Cost $26,319)		26,685
Collateralized Mortgage Obligations - 0.6%
	Principal Amount (000s)		Value (Note 1) (000s)
Private Sponsor - 0.2%
CS First Boston Mortgage Securities Corp. Series 2003-TFLA Class F, 1.9433% 4/15/13 (e)(h)	$ 230		$ 227
Master Alternative Loan Trust Series 2004-3 Class 3A1, 6% 4/25/34	125		130
Merrill Lynch Mortgage Investors, Inc.:
floater Series 2003-A Class 2A1, 1.48% 3/25/28 (h)	796		798
Series 2003-E Class XA1, 1% 10/25/28 (h)(j)	4,636		67
Series 2003-G Class XA1, 1% 1/25/29 (j)	4,146		71
Series 2003-H Class XA1, 1% 1/25/29 (e)(j)	3,744		64
Residential Asset Mortgage Products, Inc. sequential pay Series 2003-SL1 Class A31, 7.125% 4/25/31	683		718
Residential Finance LP/Residential Finance Development Corp. floater Series 2003-CB1:
Class B3, 2.5425% 6/10/35 (e)(h)	173		176
Class B4, 2.7425% 6/10/35 (e)(h)	153		156
Class B5, 3.3425% 6/10/35 (e)(h)	104		106
Class B6, 3.8425% 6/10/35 (e)(h)	64		65
Sequoia Mortgage Funding Trust Series 2003-A Class AX1, 0.8% 10/21/08 (e)(j)	16,508		186
Washington Mutual Mortgage Securities Corp. sequential pay Series 2003-MS9 Class 2A1, 7.5% 12/25/33	138		145
TOTAL PRIVATE SPONSOR			2,909
U.S. Government Agency - 0.4%
Fannie Mae planned amortization class:
Series 1999-54 Class PH, 6.5% 11/18/29	900		946
Series 1999-57 Class PH, 6.5% 12/25/29	800		852
Fannie Mae guaranteed REMIC pass thru certificates planned amortization class:
Series 2001-7 Class PQ, 6% 10/25/15	1,150		1,188
Series 2002-64 Class PC, 5.5% 12/25/26	450		461
Freddie Mac Multi-class participation certificates guaranteed:
planned amortization class Series 2435 Class EL, 6% 9/15/27	1,044		1,052
sequential pay Series 2303 Class VT, 6% 2/15/12	190		190
Series 2707:
Class ZA, 4.5% 11/15/18	163		162
Collateralized Mortgage Obligations - continued
	Principal Amount (000s)		Value (Note 1) (000s)
U.S. Government Agency - continued
Freddie Mac Multi-class participation certificates guaranteed: - continued
Class ZE, 5% 11/15/18	$ 121		$ 121
Ginnie Mae guaranteed Multi-family pass thru securities sequential pay Series 2002-35 Class C, 5.8664% 10/16/23 (h)	85		94
TOTAL U.S. GOVERNMENT AGENCY			5,066
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $7,678)		7,975
Commercial Mortgage Securities - 2.7%

Asset Securitization Corp.:
sequential pay Series 1995-MD4 Class A1, 7.1% 8/13/29	686		734
Series 1997-D5 Class PS1, 1.315% 2/14/43 (h)(j)	6,801		436
Banc of America Commercial Mortgage, Inc. Series 2003-1 Class XP1, 1.475% 9/11/36 (e)(h)(j)	14,185		412
Banc of America Large Loan, Inc.:
floater Series 2003-BBA2:
Class C, 1.56% 11/15/15 (e)(h)	60		60
Class D, 1.64% 11/15/15 (e)(h)	95		95
Series 2003-BBA2:
Class A3, 1.41% 11/15/15 (e)(h)	295		295
Class F, 1.99% 11/15/15 (e)(h)	70		70
Class H, 2.49% 11/15/15 (e)(h)	60		60
Class J, 3.04% 11/15/15 (e)(h)	65		65
Class K, 3.69% 11/15/15 (e)(h)	55		55
Bayview Commercial Asset Trust floater Series 2003-1 Class A, 1.67% 8/25/33 (e)(h)	575		579
CBM Funding Corp. sequential pay Series 1996-1:
Class A3PI, 7.08% 11/1/07	619		672
Class B, 7.48% 2/1/08	680		759
Chase Commercial Mortgage Securities Corp.:
Series 1999-2:
Class E, 7.734% 1/15/32	205		240
Class F, 7.734% 1/15/32	110		126
Series 2001-245 Class A2, 6.0658% 2/12/16 (e)(h)	250		280
COMM floater:
Series 2001-FL5A Class A2, 1.64% 11/15/13 (e)(h)	114		114
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (Note 1) (000s)
COMM floater: - continued
Series 2002-FL7:
Class A2, 1.44% 11/15/14 (e)(h)	$ 400		$ 400
Class D, 1.66% 11/15/14 (e)(h)	150		150
Crest Dartmouth Street 2003 1 Ltd./Crest Dartmouth Street 2003 1 Corp. Series 2003-1A Class C, 6.667% 6/28/38 (e)	415		415
CS First Boston Mortgage Securities Corp.:
floater Series 2001-TFLA Class B, 1.99% 12/15/11 (e)(h)	850		849
sequential pay:
Series 1998-C1 Class A1B, 6.48% 5/17/40	645		724
Series 2003-C4 Class A3, 4.7% 8/15/36 (h)	320		335
Series 1997-C2 Class D, 7.27% 1/17/35	1,220		1,393
Series 1998-C1 Class D, 7.17% 5/17/40	205		230
Series 2003-C3 Class ASP, 1.9632% 5/15/38 (e)(h)(j)	6,860		546
Series 2004-C1 Class ASP, 1.2154% 1/15/37 (e)(h)(j)	5,155		246
Deutsche Mortgage & Asset Receiving Corp. sequential pay Series 1998-C1 Class D, 7.231% 6/15/31	1,455		1,553
DLJ Commercial Mortgage Corp. sequential pay Series 1999-CG2 Class A1A, 6.88% 6/10/32	946		1,028
Equitable Life Assurance Society of the United States Series 174:
Class B1, 7.33% 5/15/06 (e)	1,000		1,101
Class C1, 7.52% 5/15/06 (e)	700		772
First Union National Bank-Chase Manhattan Bank Commercial Mortgage Trust Series 1999-C2 Class C 6.944% 6/15/31	525		603
Ginnie Mae guaranteed Multi-family pass thru securities:
sequential pay Series 2002-26 Class C, 6.0097% 2/16/24 (h)	610		676
Series 2003-87 Class C, 5.3155% 8/16/32 (h)	1,000		1,069
Ginnie Mae guaranteed REMIC pass thru securities:
sequential pay Series 2003-47 Class C, 4.227% 10/16/27	645		655
Series 2003-47 Class XA, 0.0213% 6/16/43 (h)(j)	2,025		101
Greenwich Capital Commercial Funding Corp.:
Series 2002-C1 Class SWDB 5.857% 11/11/19 (e)	555		572
Series 2003-C1 Class XP, 2.2432% 7/5/35 (e)(h)(j)	3,495		320
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (Note 1) (000s)
GS Mortgage Securities Corp. II:
sequential pay:
Series 1998-GLII Class A2, 6.562% 4/13/31	$ 130		$ 146
Series 2001-LIBA Class A2, 6.615% 2/14/16 (e)	240		272
Series 1998-GLII Class E, 6.9702% 4/13/31 (h)	350		362
J.P. Morgan Commercial Mortgage Finance Corp. sequential pay:
Series 1998-C6 Class A3, 6.613% 1/15/30	1,100		1,232
Series 1999-C7 Class A2, 6.507% 10/15/35	380		430
KSL Resorts Series 2003-1A:
Class A, 1.64% 5/15/13 (e)(h)	225		225
Class B, 1.79% 5/15/13 (e)(h)	100		100
Class K, 3.74% 5/15/13 (e)(h)	250		251
Class L, 3.94% 5/15/13 (e)(h)	250		251
LB Commercial Conduit Mortgage Trust:
Series 1998-C1 Class B, 6.59% 2/18/30	360		405
Series 1999-C1 Class B, 6.93% 6/15/31	159		184
LB-UBS Commercial Mortgage Trust sequential pay:
Series 2001-C3 Class A1, 6.058% 6/15/20	1,532		1,679
Series 2003-C5 Class A2, 3.478% 7/15/27	1,000		1,014
Leafs CMBS I Ltd./Leafs CMBS I Corp. Series 2002-1A Class C, 4.13% 11/20/37 (e)	700		653
LTC Commercial Mortgage pass thru certificates sequential pay Series 1998-1 Class A, 6.029% 5/28/30 (e)	472		475
Morgan Stanley Capital I, Inc.:
sequential pay Series 1999-WF1 Class A2, 6.21% 11/15/31	160		179
Series 1999-RM1 Class E, 7.0083% 12/15/31 (h)	824		941
Morgan Stanley Dean Witter Capital I Trust Series 2003-HQ2 Class X2, 1.5792% 3/12/35 (e)(h)(j)	3,570		260
Salomon Brothers Mortgage Securities VII, Inc. sequential pay Series 2000-C3 Class A2, 6.592% 12/18/33	480		551
Thirteen Affiliates of General Growth Properties, Inc.:
sequential pay Series 1 Class A2, 6.602% 11/15/07 (e)	1,150		1,280
Series 1:
Class D2, 6.992% 11/15/07 (e)	1,100		1,235
Class E2, 7.224% 11/15/07 (e)	660		737
Commercial Mortgage Securities - continued
	Principal Amount (000s)		Value (Note 1) (000s)
Trizechahn Office Properties Trust Series 2001-TZHA:
Class C4, 6.893% 5/15/16 (e)	$ 800		$ 909
Class E3, 7.253% 3/15/13 (e)	540		576
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $31,696)		33,137
Foreign Government and Government Agency Obligations - 0.3%

Chilean Republic:
5.5% 1/15/13	570		602
6.875% 4/28/09	300		345
7.125% 1/11/12	595		695
State of Israel 4.625% 6/15/13	510		498
United Mexican States:
7.5% 4/8/33	350		382
8% 9/24/22	800		924
TOTAL FOREIGN GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $3,132)		3,446

Fixed-Income Funds - 0.9%
	Shares
Fidelity Ultra-Short Central Fund (i) (Cost $10,500)	105,459		10,510
Money Market Funds - 32.5%

Fidelity Cash Central Fund, 1.08% (b)	261,321,941		261,322
Fidelity Money Market Central Fund, 1.15% (b)	135,550,134		135,550
Fidelity Securities Lending Cash Central Fund, 1.08% (b)	1,075,625		1,076
TOTAL MONEY MARKET FUNDS (Cost $397,948)		397,948
Cash Equivalents - 12.1%
	Maturity Amount (000s)		Value (Note 1) (000s)
Investments in repurchase agreements (Collateralized by U.S. Treasury Obligations, in a joint trading account at 0.99%, dated 3/31/04 due 4/1/04) (Cost $148,083)	$ 148,087		$ 148,083
TOTAL INVESTMENT PORTFOLIO - 102.6% (Cost $1,206,356)			1,257,037
NET OTHER ASSETS - (2.6)%			(31,659)
NET ASSETS - 100%		$ 1,225,378

Futures Contracts
	Expiration Date	Underlying Face Amount at Value (000s)	Unrealized Appreciation/ (Depreciation) (000s)
Purchased
Equity Index Contracts
177 S&P 500 Index Contracts	June 2004	$ 49,777	$ 567

The face value of futures purchased as a percentage of net assets - 4.1%

Swap Agreements
	Expiration Date	Notional Amount (000s)	Unrealized Appreciation/ (Depreciation) (000s)
Credit Default Swap
Receive quarterly notional amount multiplied by .35% and pay Goldman Sachs upon default event of Devon Energy Corp., par value of the notional amount of Devon Energy Corp. 7.95% 4/15/32	June 2006	$ 200	$ 0
Receive quarterly notional amount multiplied by .38% and pay Merrill Lynch, Inc. upon default event of EnCana Corp., par value of the notional amount of EnCana Corp. 4.75% 10/15/13	March 2009	1,400	(12)
Receive quarterly notional amount multiplied by .41% and pay Merrill Lynch, Inc. upon default event of Talisman Energy, Inc., par value of the notional amount of Talisman Energy, Inc. 7.25% 10/15/27	March 2009	300	(2)
Receive quarterly notional amount multiplied by .53% and pay Deutsche Bank upon default event of SBC Communications, Inc., par value of the notional amount of SBC Communications, Inc. 6.25% 3/15/11	March 2009	250	0
Receive quarterly notional amount multiplied by .53% and pay Lehman Brothers, Inc., upon default event of SBC Communications, Inc., par value of the notional amount of SBC Communications, Inc. 6.25% 3/15/11	March 2009	300	0
Receive quarterly notional amount multiplied by .565% and pay Morgan Stanley, Inc. upon default event of Walt Disney Co., par value of the notional amount of Walt Disney Co. 6.375% 3/1/12	March 2009	800	(1)
Receive quarterly notional amount multiplied by .59% and pay Merrill Lynch, Inc. upon default event of Raytheon Co., par value of the notional amount of Raytheon Co. 6.55% 3/15/10	March 2009	1,400	(3)
Swap Agreements - continued
	Expiration Date	Notional Amount (000s)	Unrealized Appreciation/ (Depreciation) (000s)
Credit Default Swap - continued
Receive quarterly notional amount multiplied by 1.38% and pay Merrill Lynch, Inc. upon default event of Bombardier, Inc., par value of the notional amount of Bombardier, Inc. 6.75% 5/1/12	March 2009	$ 700	$ (7)
Receive quarterly notional amount multiplied by 1.4% and pay Merrill Lynch, Inc. upon default event of Bombardier, Inc., par value of the notional amount of Bombardier, Inc. 6.75% 5/1/12	March 2009	200	(2)
		5,500	(27)
Interest Rate Swap
Receive quarterly a fixed rate equal to 2.34034% and pay quarterly a floating rate based on 3-month LIBOR with JPMorgan Chase, Inc.	March 2007	3,000	7
Receive quarterly a fixed rate equal to 2.39024% and pay quarterly a floating rate based on 3-month LIBOR with Lehman Brothers, Inc.	July 2006	400	4
Receive quarterly a fixed rate equal to 2.5509% and pay quarterly a floating rate based on 3-month LIBOR with JPMorgan Chase, Inc.	Jan. 2007	4,000	38
Receive quarterly a fixed rate equal to 2.745% and pay quarterly a floating rate based on 3-month LIBOR with Lehman Brothers, Inc.	March 2008	4,950	(9)
Receive quarterly a fixed rate equal to 2.819% and pay quarterly a floating rate based on 3-month LIBOR with Lehman Brothers, Inc.	August 2007	3,000	19
Receive quarterly a fixed rate equal to 2.85% and pay quarterly a floating rate based on 3-month LIBOR with Morgan Stanley, Inc.	July 2007	5,000	67
		20,350	126
Swap Agreements - continued
	Expiration Date	Notional Amount (000s)	Unrealized Appreciation/ (Depreciation) (000s)
Total Return Swap
Receive monthly a return equal to Lehman Brothers CMBS AAA 8.5+ and pay monthly a floating rate based on 1-month LIBOR minus 65 basis points with Lehman Brothers, Inc.	Oct. 2004	$ 2,000	$ 33
Receive monthly a return equal to Lehman Brothers CMBS Erisa Eligible and pay monthly a floating rate based on 1-month LIBOR minus 50 basis points with Lehman Brothers, Inc.	August 2004	1,000	11
Receive monthly a return equal to Lehman Brothers CMBS Erisa Eligible and pay monthly a floating rate based on 1-month LIBOR minus 50 basis points with Lehman Brothers, Inc.	Sept. 2004	1,185	3
Receive quarterly a return equal to Banc of America Securities LLC AAA 10Yr Commercial Mortgage-Backed Securities Daily Index and pay quarterly a floating rate based on 3-month LIBOR minus 75 basis points with Bank of America	May 2004	1,900	36
Receive quarterly a return equal to Banc of America Securities LLC AAA 10Yr Commercial Mortgage-Backed Securities Daily Index and pay quarterly a floating rate based on 3-month LIBOR minus 80 basis points with Bank of America	April 2004	3,000	58
		9,085	141
		$ 34,985	$ 240

Legend

(a) Non-income producing

(d) Debt obligation initially issued in zero coupon form which converts to coupon form at a specified rate and date. The rate shown is the rate at period end.

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

(g) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $3,744,000.

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

(i) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request.

(j) Security represents right to receive monthly interest payments on an underlying pool of mortgages. Principal shown is the par amount of the mortgage pool.

(k) A portion of the security is subject to a forward commitment to sell.

Other Information

Purchases and sales of securities, other than short-term securities, aggregated $655,700,000 and $632,694,000, respectively, of which long-term U.S. government and government agency obligations aggregated $391,211,000 and $349,849,000, respectively.

Income Tax Information

At September 30, 2003, the fund had a capital loss carryforward of approximately $44,242,000 all of which will expire on September 30, 2010.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

Amounts in thousands (except per-share amount)	March 31, 2004 (Unaudited)

Assets
Investment in securities, at value (including securities loaned of $1,074 and repurchase agreements of $148,083) (cost $1,206,356) - See accompanying schedule		$ 1,257,037
Commitment to sell securities on a delayed delivery basis	(1,592)
Receivable for securities sold on a delayed delivery basis	1,593	1
Receivable for investments sold, regular delivery		20,027
Cash		72
Foreign currency held at value (cost $364)		375
Receivable for fund shares sold		3,793
Dividends receivable		182
Interest receivable		8,007
Unrealized gain on swap agreements		240
Prepaid expenses		4
Other receivables		48
Total assets		1,289,786

Liabilities
Payable for investments purchased Regular delivery	$ 30,677
Delayed delivery	28,644
Payable for fund shares redeemed	3,315
Accrued management fee	426
Payable for daily variation on futures contracts	53
Other affiliated payables	175
Other payables and accrued expenses	42
Collateral on securities loaned, at value	1,076
Total liabilities		64,408

Net Assets		$ 1,225,378
Net Assets consist of:
Paid in capital		$ 1,183,800
Undistributed net investment income		2,939
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(12,860)
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		51,499
Net Assets, for 98,967 shares outstanding		$ 1,225,378
Net Asset Value, offering price and redemption price per share ($1,225,378 ÷ 98,967 shares)		$ 12.38

Semiannual Report

See accompanying notes which are an integral part of the financial statements.

Statement of Operations

Amounts in thousands	Six months ended March 31, 2004 (Unaudited)

Investment Income
Dividends		$ 710
Interest		12,068
Security lending		18
Total income		12,796

Expenses
Management fee	$ 2,348
Transfer agent fees	811
Accounting and security lending fees	170
Non-interested trustees' compensation	3
Custodian fees and expenses	34
Registration fees	48
Audit	32
Legal	4
Miscellaneous	7
Total expenses before reductions	3,457
Expense reductions	(92)	3,365
Net investment income (loss)		9,431
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities	38,270
Foreign currency transactions	(35)
Futures contracts	1,664
Swap agreements	503
Total net realized gain (loss)		40,402
Change in net unrealized appreciation (depreciation) on: Investment securities	10,767
Assets and liabilities in foreign currencies	10
Futures contracts	872
Swap agreements	247
Delayed delivery commitments	1
Total change in net unrealized appreciation (depreciation)		11,897
Net gain (loss)		52,299
Net increase (decrease) in net assets resulting from operations		$ 61,730

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Statement of Changes in Net Assets

Amounts in thousands	Six months ended March 31, 2004 (Unaudited)	Year ended September 30, 2003
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 9,431	$ 22,714
Net realized gain (loss)	40,402	8,865
Change in net unrealized appreciation (depreciation)	11,897	79,429
Net increase (decrease) in net assets resulting from operations	61,730	111,008
Distributions to shareholders from net investment income	(10,481)	(22,996)
Share transactions Net proceeds from sales of shares	346,336	389,005
Reinvestment of distributions	9,904	21,757
Cost of shares redeemed	(153,093)	(376,917)
Net increase (decrease) in net assets resulting from share transactions	203,147	33,845
Total increase (decrease) in net assets	254,396	121,857

Net Assets
Beginning of period	970,982	849,125
End of period (including undistributed net investment income of $2,939 and undistributed net investment income of $3,989, respectively)	$ 1,225,378	$ 970,982
Other Information Shares
Sold	28,398	34,315
Issued in reinvestment of distributions	820	1,963
Redeemed	(12,551)	(33,996)
Net increase (decrease)	16,667	2,282

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Highlights

	Six months ended March 31, 2004	Years ended September 30,
	(Unaudited)	2003	2002	2001	2000	1999
Selected Per-Share Data
Net asset value, beginning of period	$ 11.80	$ 10.61	$ 11.13	$ 12.24	$ 12.15	$ 12.45
Income from Invest- ment Operations
Net investment income (loss)^D	.10	.30	.43	.59	.65	.58
Net realized and unrealized gain (loss)	.60	1.19	(.52)	(.87)	.30	.22
Total from investment operations	.70	1.49	(.09)	(.28)	.95	.80
Distributions from net investment income	(.12)	(.30)	(.43)	(.61)	(.65)	(.57)
Distributions from net realized gain	-	-	-	(.22)	(.21)	(.53)
Total distributions	(.12)	(.30)	(.43)	(.83)	(.86)	(1.10)
Net asset value, end of period	$ 12.38	$ 11.80	$ 10.61	$ 11.13	$ 12.24	$ 12.15
Total Return^{B, C}	5.96%	14.26%	(.92)%	(2.40)%	8.10%	6.65%
Ratios to Average Net Assets^E
Expenses before expense reductions	.63%^A	.64%	.64%	.64%	.65%	.69%
Expenses net of voluntary waivers, if any	.63%^A	.64%	.64%	.64%	.65%	.69%
Expenses net of all reductions	.61%^A	.61%	.63%	.62%	.62%	.67%
Net investment income (loss)	1.71%^A	2.69%	3.90%	5.10%	5.36%	4.72%
Supplemental Data
Net assets, end of period (in millions)	$ 1,225	$ 971	$ 849	$ 916	$ 818	$ 903
Portfolio turnover rate	192%^A	276%	164%	164%	140%	121%

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns would have been lower had certain expenses not been reduced during the periods shown.

^D Calculated based on average shares outstanding during the period.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Notes to Financial Statements

For the period ended March 31, 2004 (Unaudited)

(Amounts in thousands except ratios)

1. Significant Accounting Policies.

Fidelity Asset Manager: Income (the fund) is a fund of Fidelity Charles Street Trust (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

1. Significant Accounting Policies - continued

Foreign Currency - continued

Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. The fund estimates the components of distributions received from Real Estate Investment Trusts (REITs). Distributions received in excess of income are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities, which is accrued using the interest method. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectibility of interest is reasonably assured.

Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.

Semiannual Report

1. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

prior period premium and discount on debt securities, market discount, partnerships, non-taxable dividends, financing transactions, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.

The federal tax cost of investments including unrealized appreciation (depreciation) as of period end was as follows:

Unrealized appreciation	$ 56,824
Unrealized depreciation	(5,748)
Net unrealized appreciation (depreciation)	$ 51,076
Cost for federal income tax purposes	$ 1,205,961

2. Operating Policies.

Delayed Delivery Transactions and When-Issued Securities. The fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in the fund's Schedule of Investments. The fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

2. Operating Policies - continued

Futures Contracts. The fund may use futures contracts to manage its exposure to the stock market. Buying futures tends to increase the fund's exposure to the underlying instrument, while selling futures tends to decrease the fund's exposure to the underlying instrument or hedge other fund investments. Futures contracts involve, to varying degrees, risk of loss in excess of any futures variation margin reflected in the Statement of Assets and Liabilities. The underlying face amount at value of any open futures contracts at period end is shown in the Schedule of Investments under the caption "Futures Contracts." This amount reflects each contract's exposure to the underlying instrument at period end. Losses may arise from changes in the value of the underlying instruments or if the counter-parties do not perform under the contracts' terms. Gains (losses) are realized upon the expiration or closing of the futures contracts. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.

Swap Agreements. The fund may invest in swaps for the purpose of managing its exposure to interest rate, credit or market risk. Interest rate swaps are agreements to exchange cash flows periodically based on a notional principal amount, for example, the exchange of fixed rate interest payments for floating rate interest payments. Periodic payments received or made by the fund are recorded in the accompanying Statement of Operations as realized gains or losses, respectively. The primary risk associated with interest rate swaps is that unfavorable changes in the fluctuation of interest rates could adversely impact the fund. Total return swaps are agreements to exchange the return generated by one instrument for the return generated by another instrument, for example, the agreement to pay interest in exchange for a market-linked return based on a notional amount. To the extent the total return of the index exceeds the offsetting interest obligation, the fund will receive a payment from the counterparty. To the extent it is less, the fund will make a payment to the counterparty. Periodic payments received or made by the fund are recorded in the accompanying Statement of Operations as realized gains or losses, respectively. Credit default swaps involve the exchange of a fixed rate premium for protection against the loss in value of an underlying debt instrument in the event of a defined credit event (such as payment default or bankruptcy). Under the terms of the swap, one party acts as a "guarantor" receiving a periodic payment that is a fixed percentage applied to a notional principal amount. In return the party agrees to

Semiannual Report

2. Operating Policies - continued

Swap Agreements - continued

purchase the notional amount of the underlying instrument, at par, if a credit event occurs during the term of the swap. The fund may enter into credit default swaps in which the fund or its counterparty act as guarantors. By acting as the guarantor of a swap, the fund assumes the market and credit risk of the underlying instrument including liquidity and loss of value. Premiums received or made by the fund are recorded in the accompanying Statement of Operations as realized gains or losses, respectively. Swaps are marked-to-market daily based on dealer-supplied valuations and changes in value are recorded as unrealized appreciation (depreciation). Gains or losses are realized upon early termination of the swap agreement. Collateral, in the form of cash or securities, may be required to be held in segregated accounts with the fund's custodian in compliance with swap contracts. Risks may exceed amounts recognized on the Statement of Assets and Liabilities. These risks include changes in the returns of the underlying instruments, failure of the counterparties to perform under the contracts' terms and the possible lack of liquidity with respect to the swap agreements. Details of swap agreements open at period end are included in the fund's Schedule of Investments under the caption "Swap Agreements."

3. Purchases and Sales of Investments.

Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

(Amounts in thousands except ratios)

4. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the fund's average net assets and a group fee rate that averaged .13% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .43% of the fund's average net assets.

5. Committed Line of Credit.

Semiannual Report

6. Security Lending.

7. Expense Reductions.

Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services included payments of certain expenses on behalf of the fund totaling $88 for the period. In addition, through arrangements with the fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. During the period, these credits reduced the fund's custody and transfer agent expenses by $2 and $2, respectively.

Semiannual Report

Managing Your Investments

By Phone

(phone_graphic)Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555

Press

1 For mutual fund and brokerage trading.

2 For quotes.*

3 For account balances and holdings.

4 To review orders and mutual
fund activity.

5 To change your PIN.

*0 To speak to a Fidelity representative.

By PC

Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.

(computer_graphic)Fidelity's Web Site
www.fidelity.com

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Investments Money
Management, Inc.

Fidelity Management & Research

(U.K.) Inc.

Fidelity Management & Research

(Far East) Inc.

Fidelity Investments Japan Limited

Fidelity International Investment

Advisors

Fidelity International Investment

Advisors (U.K.) Limited

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Shareholder
Servicing Agent

Fidelity Service Company, Inc.

Boston, MA

Custodian

JPMorgan Chase Bank

New York, NY

Fidelity's Asset Allocation Funds

Asset Manager^SM

Asset Manager: Aggressive®

Asset Manager: Growth®

Asset Manager: Income®

Fidelity Freedom Funds® -
Income, 2000, 2005, 2010, 2015, 2020, 2025, 2030, 2035, 2040

The Fidelity Telephone Connection

Mutual Fund 24-Hour Service

Exchanges/Redemptions
and Account Assistance 1-800-544-6666

Product Information 1-800-544-6666

Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)

TDD Service 1-800-544-0118
(for the deaf and hearing impaired)
(9 a.m. - 9 p.m. Eastern time)

Fidelity Automated Service
Telephone (FAST^®) (automated graphic) 1-800-544-5555

(automated graphic) Automated line for quickest service

(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com

AMI-USAN-0504
1.792155.100

Item 2. Code of Ethics

Not applicable.

Item 3. Audit Committee Financial Expert

Not applicable.

Item 4. Principal Accountant Fees and Services

Not applicable.

Item 5. Audit Committee of Listed Registrants

Not applicable.

Item 6. Schedule of Investments

Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not applicable.

Item 8. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

Not applicable.

Item 9. Submission of Matters to a Vote of Security Holders

There were no material changes to the procedures by which shareholders may recommend nominees to the Fidelity Charles Street Trust's Board of Trustees.

Item 10. Controls and Procedures

(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Charles Street 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 half-year that has materially affected, or is reasonably likely to materially affect, the Trust's internal control over financial reporting.

Item 11. Exhibits

(a)	(1)	Not applicable.
(a)	(2)	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.
(a)	(3)	Not applicable.
(b)		Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT.

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 Charles Street Trust

By:	/s/Christine Reynolds
	Christine Reynolds
	President and Treasurer

Date:	May 26, 2004

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/Christine Reynolds
	Christine Reynolds
	President and Treasurer

Date:	May 26, 2004
By:	/s/Timothy F. Hayes
	Timothy F. Hayes
	Chief Financial Officer

Date:	May 25, 2004

Asset Manager: Aggressive®

Contents

Chairman's Message

Investment Changes

Investments March 31, 2004 (Unaudited)

Financial Statements

Notes to Financial Statements

Managing Your Investments

To Visit Fidelity

To Write Fidelity

Asset ManagerSM

Contents

Chairman's Message

Investment Changes

Investments March 31, 2004

Financial Statements

Notes to Financial Statements

Independent Auditors' Report

Managing Your Investments

To Visit Fidelity

To Write Fidelity

Investment Grade Bond

Contents

Chairman's Message

Investment Changes

Investments March 31, 2004 (Unaudited)

Financial Statements

Notes to Financial Statements

Managing Your Investments

To Visit Fidelity

To Write Fidelity

Asset Manager: Growth®

Contents

Chairman's Message

Investment Changes

Investments March 31, 2004 (Unaudited)

Financial Statements

Notes to Financial Statements

Managing Your Investments

To Write Fidelity

To Visit Fidelity

Asset Manager: Income®

Contents

Chairman's Message

Investment Changes

Investments March 31, 2004 (Unaudited)

Financial Statements

Notes to Financial Statements

Managing Your Investments

Asset Manager^SM

Asset Manager: Growth^®