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)

Scott C. Goebel, Secretary

82 Devonshire St.

Boston, Massachusetts 02109
(Name and address of agent for service)

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

Date of fiscal year end:

October 31

Date of reporting period:

April 30, 2008

Item 1. Reports to Stockholders

Fidelity®

Global Balanced

Fund

Semiannual Report

April 30, 2008

(2_fidelity_logos) (Registered_Trademark)

Contents

Chairman's Message

<Click Here>

Ned Johnson's message to shareholders.

Shareholder Expense Example

<Click Here>

An example of shareholder expenses.

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.

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.

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 LLC or an affiliated company.

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.

A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Chairman's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

Continuation of a credit squeeze, flat consumer spending and a potential recession weighed heavily on stocks in the opening months of 2008, though positive results in investment-grade bonds and money markets offered some comfort to investors. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.

One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.

You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).

A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.

We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.

Sincerely,

/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Semiannual Report

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2007 to April 30, 2008).

Actual Expenses

The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Semiannual Report

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Beginning
Account Value
November 1, 2007

Ending
Account Value
April 30, 2008

Expenses Paid
During Period*
November 1, 2007 to April 30, 2008

Actual

$ 1,000.00

$ 959.80

$ 5.55

Hypothetical (5% return per year before expenses)

$ 1,000.00

$ 1,019.19

$ 5.72

* Expenses are equal to the Fund's annualized expense ratio of 1.14%; multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).

Semiannual Report

Investment Changes (Unaudited)

Geographic Diversification (% of fund's net assets)

As of April 30, 2008

United States of America 38.5%

Japan 15.4%

Germany 10.3%

United Kingdom 7.2%

France 4.6%

Australia 3.9%

Canada 3.4%

Switzerland 2.2%

Italy 1.4%

Other 13.1%

Percentages are adjusted for the effect of futures contracts, if applicable.

As of October 31, 2007

United States of America 31.2%

Japan 15.8%

Germany 9.8%

France 8.0%

United Kingdom 6.3%

Australia 4.8%

Canada 3.6%

Switzerland 3.3%

Hong Kong 1.8%

Other 15.4%



Percentages are adjusted for the effect of futures contracts, if applicable.

Asset Allocation

% of fund's
net assets

% of fund's net assets
6 months ago

Stocks

56.4

62.0

Bonds

35.2

33.1

Convertible Securities

0.1

0.1

Short-Term Investments and Net Other Assets

8.3

4.8

Top Five Stocks as of April 30, 2008

% of fund's
net assets

% of fund's net assets
6 months ago

Southwestern Energy Co. (United States of America)

1.6

0.0

Norfolk Southern Corp. (United States of America)

1.5

0.0

NRG Energy, Inc. (United States of America)

1.5

0.0

T. Rowe Price Group, Inc. (United States of America)

1.2

0.5

Apple, Inc. (United States of America)

1.1

0.6

6.9

Top Five Bond Issuers as of April 30, 2008

(with maturities greater than one year)

% of fund's
net assets

% of fund's net assets
6 months ago

Japan Government

9.4

7.9

German Federal Republic

7.6

5.3

French Republic

1.7

2.2

U.S. Treasury Obligations

1.6

2.2

UK Treasury GILT

0.9

0.9

21.2

Market Sectors as of April 30, 2008

% of fund's
net assets

% of fund's net assets
6 months ago

Financials

20.1

20.6

Energy

9.1

7.2

Industrials

7.9

10.7

Information Technology

5.3

9.4

Consumer Discretionary

5.5

4.3

Materials

5.4

5.9

Consumer Staples

4.6

3.4

Health Care

3.7

5.2

Utilities

3.0

2.2

Telecommunication Services

1.7

3.6

Semiannual Report

Investments April 30, 2008 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 56.2%

Shares

Value

Argentina - 0.0%

Cresud S.A.C.I.F. y A. sponsored ADR

10,700

$ 174,945

Australia - 3.8%

BHP Billiton Ltd.

40,634

1,637,589

Brambles Ltd.

111,350

934,775

Cochlear Ltd.

5,944

317,899

Commonwealth Bank of Australia

27,999

1,184,491

Computershare Ltd.

123,760

1,044,793

CSL Ltd.

110,949

4,164,129

QBE Insurance Group Ltd.

46,139

1,100,636

Rio Tinto Ltd.

6,891

884,511

Sunland Group Ltd.

180,594

485,484

Telstra Corp. Ltd.

200,372

861,844

Toll Holdings Ltd.

120,489

901,254

Wesfarmers Ltd. (h)

33,975

1,198,555

Woolworths Ltd.

36,163

978,979

WorleyParsons Ltd.

17,104

625,974

TOTAL AUSTRALIA

16,320,913

Belgium - 0.3%

Fortis

34,300

937,050

Umicore SA

9,000

482,052

TOTAL BELGIUM

1,419,102

Bermuda - 0.3%

Aquarius Platinum Ltd. (United Kingdom)

29,300

461,677

Seadrill Ltd.

24,700

752,161

TOTAL BERMUDA

1,213,838

Canada - 2.6%

Aeroplan Income Fund

1,300

19,685

Agrium, Inc.

1,200

94,358

Alimentation Couche-Tard, Inc. Class B (sub. vtg.)

2,800

38,812

B2Gold Corp.

8,900

12,019

Bank of Montreal

4,000

198,987

Barrick Gold Corp.

3,400

130,686

BCE, Inc.

4,700

171,741

Birchcliff Energy Ltd. (a)

1,000

10,922

Bombardier, Inc. Class B (sub. vtg.) (a)

40,300

264,105

Brookfield Asset Management, Inc. Class A

3,900

127,212

Brookfield Properties Corp.

2,000

40,260

CAE, Inc.

5,800

66,575

Cameco Corp.

3,800

132,100

Common Stocks - continued

Shares

Value

Canada - continued

Canadian Imperial Bank of Commerce

1,700

$ 125,200

Canadian National Railway Co.

800

41,895

Canadian Natural Resources Ltd.

5,000

424,734

Canadian Oil Sands Trust

5,400

242,520

Canadian Pacific Railway Ltd.

19,700

1,357,150

CGI Group, Inc. Class A (sub. vtg.) (a)

5,400

62,895

CI Financial Income Fund

1,200

26,738

Corus Entertainment, Inc. Class B (non-vtg.)

2,000

38,427

Duvernay Oil Corp. (a)

800

38,185

Eldorado Gold Corp. (a)

4,700

32,061

Enbridge, Inc.

600

24,677

EnCana Corp.

13,000

1,048,804

Finning International, Inc.

3,300

98,138

Flint Energy Services Ltd. (a)

1,300

29,057

Fording Canadian Coal Trust

1,600

98,596

Garda World Security Corp. (a)

2,500

41,828

Gildan Activewear, Inc. (a)

3,700

94,824

Goldcorp, Inc.

6,900

245,347

Great Canadian Gaming Corp. (a)

2,500

25,196

Harry Winston Diamond Corp.

800

23,704

Husky Energy, Inc.

3,100

139,994

ING Canada, Inc.

1,200

46,589

Keyera Facilities Income Fund

3,500

72,808

Kinross Gold Corp.

5,500

103,927

MacDonald Dettwiler & Associates Ltd. (a)

900

36,640

Manulife Financial Corp.

10,700

418,289

Mecachrome International, Inc. (a)(g)

600

4,427

Metro, Inc. Class A (sub. vtg.)

1,000

24,228

National Bank of Canada

2,100

112,038

Nexen, Inc.

2,300

79,704

Niko Resources Ltd.

1,100

99,394

Noveko International, Inc. (a)

4,500

27,033

Onex Corp. (sub. vtg.)

800

25,086

Open Text Corp. (a)

1,500

55,392

Orezone Resources, Inc. Class A (a)

22,300

28,786

Petro-Canada

2,000

100,209

Potash Corp. of Saskatchewan, Inc.

2,600

478,270

Power Corp. of Canada (sub. vtg.)

2,800

98,199

Quebecor, Inc. Class B (sub. vtg.)

2,200

62,629

Research In Motion Ltd. (a)

3,600

437,868

Rogers Communications, Inc. Class B (non-vtg.)

6,400

284,762

Royal Bank of Canada

7,000

333,770

Common Stocks - continued

Shares

Value

Canada - continued

Shoppers Drug Mart Corp.

2,700

$ 142,601

Shore Gold, Inc. (a)

6,600

23,855

Silver Wheaton Corp. (a)

22,900

303,560

SNC-Lavalin Group, Inc.

7,000

351,077

Sun Life Financial, Inc.

1,500

72,520

Suncor Energy, Inc.

4,400

496,535

Talisman Energy, Inc.

5,600

113,268

Thomson Reuters Corp.

1,000

37,037

Toronto-Dominion Bank

6,600

433,250

TransCanada Corp.

8,900

326,095

TransForce Income Fund

1,500

11,364

TSX Group, Inc.

1,000

42,002

Viterra, Inc. (a)(h)

5,900

80,670

Yamana Gold, Inc.

9,400

120,498

Yellow Pages Income Fund

4,000

43,571

TOTAL CANADA

11,095,383

Cyprus - 0.1%

Bank of Cyprus Public Co. Ltd.

26,700

369,297

Finland - 0.2%

Neste Oil Oyj

16,500

500,996

Nokia Corp. sponsored ADR

14,000

420,980

TOTAL FINLAND

921,976

France - 2.1%

Alstom SA

3,000

697,812

AXA SA

12,100

446,967

BNP Paribas SA

9,500

1,027,009

Credit Agricole SA

13,000

439,372

Eutelsat Communications

25,300

748,446

Groupe Danone

11,600

1,029,302

Pernod Ricard SA

7,700

889,515

Societe Generale (a)

500

57,917

Societe Generale Series A

2,000

234,665

Suez SA (France)

16,100

1,143,584

Total SA sponsored ADR

20,100

1,688,400

Veolia Environnement

7,612

553,039

TOTAL FRANCE

8,956,028

Germany - 2.4%

Adidas-Salomon AG

7,600

486,320

Allianz AG (Reg.)

5,500

1,117,310

Common Stocks - continued

Shares

Value

Germany - continued

Commerzbank AG

10,400

$ 378,286

Continental AG

5,000

589,549

Daimler AG (Reg.)

10,200

792,939

Deutsche Postbank AG

3,500

307,724

E.ON AG

8,700

1,775,247

ESCADA AG (a)

6,100

119,034

Fresenius AG

4,500

381,736

K&S AG

1,800

757,543

Linde AG

6,000

881,397

Muenchener Rueckversicherungs-Gesellschaft AG (Reg.)

5,100

989,310

RWE AG (f)

7,000

807,994

SAP AG sponsored ADR (f)

10,400

522,392

SolarWorld AG

6,100

329,200

Vossloh AG

1,200

174,106

TOTAL GERMANY

10,410,087

Greece - 0.1%

Public Power Corp. of Greece

9,800

414,291

Hong Kong - 0.9%

CNOOC Ltd.

149,000

264,488

Esprit Holdings Ltd.

90,700

1,116,125

Hang Seng Bank Ltd.

55,900

1,119,700

Hong Kong Exchanges & Clearing Ltd.

12,500

255,352

Li & Fung Ltd.

278,000

1,150,433

TOTAL HONG KONG

3,906,098

Ireland - 0.1%

C&C Group PLC

40,700

279,562

Italy - 1.1%

A2A SpA

74,200

273,947

ENI SpA sponsored ADR

14,800

1,139,896

Fiat SpA

23,500

528,166

Finmeccanica SpA

18,800

657,410

IFIL Finanziaria di Partecipazioni SpA

9,536

79,956

Intesa Sanpaolo SpA

99,100

743,822

Prysmian SpA

10,600

253,030

UniCredit SpA

146,200

1,114,004

TOTAL ITALY

4,790,231

Japan - 4.7%

ABC-Mart, Inc.

3,800

98,342

ACOM Co. Ltd.

13,370

413,487

Common Stocks - continued

Shares

Value

Japan - continued

Aeon Co. Ltd.

7,600

$ 111,399

Asahi Glass Co. Ltd.

58,000

692,458

Atlus Co. Ltd. (a)

6,300

36,908

Bridgestone Corp.

34,000

625,669

Capcom Co. Ltd.

7,900

237,962

Central Japan Ry Co.

95

932,429

Daihen Corp. (f)

19,000

68,578

Daiichi Sankyo Co. Ltd.

7,700

212,137

Daiwa House Industry Co. Ltd.

31,000

350,578

Disco Corp.

3,700

181,781

East Japan Railway Co.

46

367,023

Fuji Machine Manufacturing Co. Ltd.

6,300

125,418

Fuji Oil Co. Ltd.

20,100

186,299

Fujifilm Holdings Corp.

15,800

610,750

Fujitsu Ltd.

29,000

185,507

Hitachi Ltd.

90,000

606,905

Hitachi Metals Ltd.

17,000

255,229

Hitachi Software Engineerng Co. Ltd.

4,500

110,789

Honda Motor Co. Ltd.

14,600

465,913

Ito En Ltd. (f)

5,000

86,997

Japan Tobacco, Inc.

89

432,710

Kansai Electric Power Co., Inc.

13,900

331,956

Kobayashi Pharmaceutical Co. Ltd.

1,700

59,473

Konica Minolta Holdings, Inc.

14,000

210,942

Kubota Corp.

24,000

168,125

Kuraray Co. Ltd.

9,500

113,236

Lawson, Inc.

9,900

428,417

Marui Group Co. Ltd.

21,000

208,403

Matsumotokiyoshi Holdings Co. Ltd.

16,400

343,622

Mitsubishi Corp.

6,300

202,776

Mitsubishi UFJ Financial Group, Inc. sponsored ADR

50,000

549,500

Mitsubishi UFJ Lease & Finance Co. Ltd.

3,960

194,361

Mitsui & Co. Ltd.

23,000

540,100

Mitsui Chemicals, Inc.

18,000

110,452

Mitsui O.S.K. Lines Ltd.

32,000

441,758

Mizuho Financial Group, Inc.

97

504,730

Namco Bandai Holdings, Inc.

15,100

189,445

New City Residence Investment Corp.

46

115,540

Nikon Corp.

8,000

231,127

Nintendo Co. Ltd.

1,000

549,520

Nippon Mining Holdings, Inc.

17,000

105,594

Nippon Suisan Kaisha Co. Ltd.

22,400

99,681

Common Stocks - continued

Shares

Value

Japan - continued

Nomura Holdings, Inc.

22,400

$ 391,087

NSK Ltd.

8,000

66,662

Obayashi Corp.

15,000

72,860

Okinawa Cellular Telephone Co.

70

121,550

Osaka Securities Exchange Co. Ltd.

36

195,804

Rakuten, Inc.

686

428,462

Ryohin Keikaku Co. Ltd.

1,800

119,499

Sankei Building Co. Ltd.

13,200

90,906

Sankyo Co. Ltd. (Gunma)

5,500

331,228

SHO-BOND Holdings Co. Ltd.

8,000

92,615

Sompo Japan Insurance, Inc.

74,000

824,380

Sony Corp.

1,000

46,098

Square Enix Co. Ltd.

2,400

78,307

Sumitomo Electric Industries Ltd.

19,400

250,335

Sumitomo Metal Mining Co. Ltd.

12,000

218,168

Sumitomo Mitsui Financial Group, Inc.

149

1,282,020

Sumitomo Trust & Banking Co. Ltd.

85,000

764,123

Takashimaya Co. Ltd.

13,000

142,715

THK Co. Ltd.

8,300

184,556

Toho Pharmaceutical Co. Ltd.

5,800

119,854

Tohokushinsha Film Corp.

7,500

74,800

Tokai Carbon Co. Ltd.

7,000

73,329

Tokuyama Corp.

22,000

199,696

Tokyo Electron Ltd.

2,300

149,372

Toyoda Gosei Co. Ltd.

3,900

142,512

Toyota Motor Corp.

6,100

310,822

Uni-Charm Corp.

4,100

285,591

TOTAL JAPAN

20,151,377

Luxembourg - 0.4%

ArcelorMittal SA:

(France)

12,600

1,117,051

(NY Reg.) Class A

7,000

623,630

TOTAL LUXEMBOURG

1,740,681

Netherlands - 0.4%

Koninklijke KPN NV

60,300

1,109,373

Unilever NV (NY Shares)

26,300

882,102

TOTAL NETHERLANDS

1,991,475

Netherlands Antilles - 0.2%

Schlumberger Ltd. (NY Shares)

7,000

703,850

Common Stocks - continued

Shares

Value

Norway - 0.4%

Petroleum Geo-Services ASA

23,500

$ 641,749

Pronova BioPharma ASA

69,100

238,931

Renewable Energy Corp. AS (a)

11,300

386,842

Telenor ASA

18,600

376,385

TOTAL NORWAY

1,643,907

Papua New Guinea - 0.3%

Lihir Gold Ltd. (a)

74,936

207,809

New Britain Palm Oil Ltd.

40,200

453,989

Oil Search Ltd.

135,736

608,157

TOTAL PAPUA NEW GUINEA

1,269,955

Russia - 0.1%

OAO Gazprom sponsored ADR

7,800

412,620

Singapore - 0.8%

DBS Group Holdings Ltd.

79,000

1,156,950

Keppel Corp. Ltd.

44,000

334,843

Raffles Education Corp. Ltd.

680,000

581,668

Rickmers Maritime

715,000

558,882

Singapore Exchange Ltd.

61,000

386,395

United Overseas Bank Ltd.

29,000

436,251

TOTAL SINGAPORE

3,454,989

Spain - 1.0%

Banco Santander SA

30,800

665,934

Iberdrola SA

35,000

514,148

Inditex SA

3,900

212,968

Repsol YPF SA sponsored ADR

11,400

462,498

Tecnicas Reunidas SA

8,100

614,669

Telefonica SA sponsored ADR

20,900

1,805,342

TOTAL SPAIN

4,275,559

Sweden - 0.4%

H&M Hennes & Mauritz AB (B Shares)

10,100

600,498

Skandinaviska Enskilda Banken AB (A Shares)

19,000

461,696

TELE2 AB (B Shares)

23,700

528,408

TOTAL SWEDEN

1,590,602

Switzerland - 2.1%

ABB Ltd. sponsored ADR

23,800

729,946

Credit Suisse Group (Reg.)

10,300

573,437

Julius Baer Holding AG

6,462

479,475

Lindt & Spruengli AG

23

753,203

Common Stocks - continued

Shares

Value

Switzerland - continued

Nestle SA (Reg.)

4,618

$ 2,214,537

Novartis AG (Reg.)

16,405

826,698

Roche Holding AG (participation certificate)

4,081

680,429

SGS Societe Generale de Surveillance Holding SA (Reg.)

312

441,027

Sonova Holding AG

7,565

640,149

Syngenta AG sponsored ADR

14,100

834,438

UBS AG:

(NY Shares)

8,900

298,951

(NY Shares) rights 5/9/08 (a)

8,900

14,948

Zurich Financial Services AG (Reg.)

2,700

826,491

TOTAL SWITZERLAND

9,313,729

United Kingdom - 4.3%

Anglo American PLC (United Kingdom)

16,600

1,078,932

Bellway PLC

16,600

231,860

BG Group PLC

50,600

1,238,453

Bovis Homes Group PLC

28,900

267,335

British American Tobacco PLC

21,700

813,991

British Sky Broadcasting Group PLC (BSkyB) sponsored ADR

12,100

520,300

GlaxoSmithKline PLC

35,300

780,854

HSBC Holdings PLC sponsored ADR

24,000

2,082,960

Informa PLC

35,600

244,551

Kesa Electricals PLC

31,800

131,669

Lloyds TSB Group PLC

74,800

643,219

Man Group PLC

54,700

632,424

Persimmon PLC

17,600

202,786

Reckitt Benckiser Group PLC

25,500

1,489,577

Redrow PLC

18,300

93,873

Rio Tinto PLC (Reg.)

10,900

1,270,614

Royal Dutch Shell PLC Class A (United Kingdom)

63,000

2,540,268

Signet Group PLC

158,100

216,110

Standard Chartered PLC (United Kingdom)

23,700

845,360

Tesco PLC

93,500

797,517

Tullow Oil PLC

25,300

379,283

Vodafone Group PLC

243,100

769,307

Vodafone Group PLC sponsored ADR

23,700

750,342

Xstrata PLC

7,200

564,886

TOTAL UNITED KINGDOM

18,586,471

United States of America - 27.1%

Albemarle Corp.

83,900

3,138,699

American Express Co.

36,000

1,728,720

Common Stocks - continued

Shares

Value

United States of America - continued

American International Group, Inc.

54,000

$ 2,494,800

American Tower Corp. Class A (a)

700

30,394

Apple, Inc. (a)

28,000

4,870,600

Burlington Northern Santa Fe Corp.

25,000

2,563,750

Cabot Oil & Gas Corp.

64,500

3,674,565

Capital One Financial Corp.

9,000

477,000

Caterpillar, Inc.

11,000

900,680

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

25,000

578,000

Chattem, Inc. (a)

13,000

908,440

Cisco Systems, Inc. (a)

64,950

1,665,318

CIT Group, Inc.

21,700

236,313

Citigroup, Inc.

144,000

3,638,880

Comerica, Inc.

4,000

138,920

Cummins, Inc.

11,600

726,740

D.R. Horton, Inc.

157,000

2,431,930

Eaton Corp.

39,700

3,487,248

Electronic Arts, Inc. (a)

10,000

514,700

Fifth Third Bancorp

6,000

128,580

FMC Corp.

17,000

1,067,260

Freeport-McMoRan Copper & Gold, Inc. Class B

19,000

2,161,250

General Growth Properties, Inc.

32,100

1,314,816

Gilead Sciences, Inc. (a)

58,200

3,012,432

Google, Inc. Class A (sub. vtg.) (a)

7,563

4,343,355

Harley-Davidson, Inc.

51,600

1,973,700

James River Coal Co. (a)(f)

111,500

2,478,645

Johnson Controls, Inc.

78,800

2,778,488

JPMorgan Chase & Co.

40,000

1,906,000

Lehman Brothers Holdings, Inc.

14,000

619,360

Marshall & Ilsley Corp.

10,000

249,800

Medco Health Solutions, Inc. (a)

57,000

2,823,780

Monsanto Co.

540

61,571

Myriad Genetics, Inc. (a)

7,000

290,780

Nabors Industries Ltd. (a)

23,500

882,190

Norfolk Southern Corp.

107,900

6,428,682

NRG Energy, Inc. (a)

145,200

6,381,540

Oracle Corp. (a)

53,900

1,123,815

PACCAR, Inc.

49,600

2,347,072

Peabody Energy Corp.

13,000

794,690

Philip Morris International, Inc. (a)

38,000

1,939,140

Polo Ralph Lauren Corp. Class A

33,000

2,049,630

Principal Financial Group, Inc.

11,000

590,260

Range Resources Corp.

71,100

4,719,618

Common Stocks - continued

Shares

Value

United States of America - continued

Raytheon Co. warrants 6/16/11 (a)

112

$ 3,086

Regions Financial Corp.

20,000

438,400

Ryder System, Inc.

19,000

1,300,930

Southwestern Energy Co. (a)

165,000

6,981,150

Sovereign Bancorp, Inc.

15,000

112,050

State Street Corp.

19,000

1,370,660

T. Rowe Price Group, Inc.

86,400

5,059,584

Tim Hortons, Inc.

1,100

37,785

Union Pacific Corp.

8,300

1,205,077

Visa, Inc.

51,000

4,255,950

VMware, Inc. Class A

11,100

739,704

W.R. Grace & Co. (a)

39,000

989,040

Wachovia Corp.

88,000

2,565,200

Wal-Mart Stores, Inc.

29,000

1,681,420

Winnebago Industries, Inc. (f)

26,000

418,340

Zions Bancorp

63,000

2,920,050

TOTAL UNITED STATES OF AMERICA

116,750,577

TOTAL COMMON STOCKS

(Cost $219,077,795)

242,157,543

Preferred Stocks - 0.1%

Convertible Preferred Stocks - 0.0%

United States of America - 0.0%

CIT Group, Inc. Series C, 8.75%

3,500

190,365

Nonconvertible Preferred Stocks - 0.1%

Italy - 0.1%

Istituto Finanziario Industriale SpA (IFI) (a)

8,900

235,778

TOTAL PREFERRED STOCKS

(Cost $386,709)

426,143

Investment Companies - 0.1%

United States of America - 0.1%

United States Natural Gas Fund LP ETF (a)
(Cost $354,813)

7,300

376,680

Corporate Bonds - 10.0%

Principal Amount (d)

Value

Convertible Bonds - 0.1%

United Kingdom - 0.1%

Shire PLC 2.75% 5/9/14

$ 300,000

$ 277,200

Nonconvertible Bonds - 9.9%

Australia - 0.1%

Macquarie Bank Ltd. 5.404% 6/20/13 (i)

EUR

100,000

155,548

QBE Capital Funding II LP 6.797% (g)(i)

130,000

111,668

TOTAL AUSTRALIA

267,216

Bermuda - 0.1%

Northern Offshore Ltd. 7.3675% 6/14/10 (g)(i)

100,000

95,000

Rubicon Offshore Holdings Ltd. 7.7088% 4/16/12 (g)(i)

200,000

178,000

Sea Production Ltd. 7.3175% 2/14/12 (g)(i)

100,000

92,000

SeaDrill Ltd. 7.59% 1/23/09 (g)(i)

NOK

1,000,000

195,481

TOTAL BERMUDA

560,481

British Virgin Islands - 0.0%

CEMEX SAB de CV 6.196% (i)

100,000

96,220

Cayman Islands - 0.3%

Bosphorus Financial Services Ltd. 4.865% 2/15/12 (i)

250,000

245,000

Cullinan Finance Ltd. 4.377% 8/5/08 (i)

EUR

200,000

311,992

Finans Capital Finance Ltd. 9% 10/7/14 (Reg. S) (e)

160,000

165,600

MUFG Capital Finance 5 Ltd. 6.299% (i)

GBP

100,000

156,815

PetroProd Ltd. 8.71% 1/12/12 (g)(i)

200,000

180,000

SMFG Finance Ltd. 6.164% (i)

GBP

75,000

118,699

Vale Overseas Ltd. 6.875% 11/21/36

325,000

328,933

TOTAL CAYMAN ISLANDS

1,507,039

Cyprus - 0.2%

Colgrade Ltd. 8.25% 6/28/10

380,000

371,374

Mizuho Capital Investment Europe 1 Ltd. 5.02% (i)

EUR

100,000

137,767

Remedial Cyprus PCL 7.9213% 3/28/12 (g)(i)

200,000

179,500

TOTAL CYPRUS

688,641

France - 0.8%

BNP Paribas SA 3.2925% 11/23/15 (i)

200,000

192,720

Caisse Nationale des Caisses d' Epargne et de Prevoyance 6.117% (i)

EUR

150,000

210,682

CMA CGM SA 5.5% 5/16/12 (Reg. S)

EUR

195,000

273,087

Compagnie de Financement Foncier 4.625% 9/23/17

EUR

650,000

1,008,302

Compagnie de St. Gobain 4.994% 4/11/12 (i)

EUR

175,000

258,858

Credit Logement SA 5.206% 12/2/49 (i)

EUR

250,000

362,956

Corporate Bonds - continued

Principal Amount (d)

Value

Nonconvertible Bonds - continued

France - continued

Dexia Credit Local de France 3.005% 6/27/13 (i)

$ 500,000

$ 499,000

Natixis SA 5.087% 1/26/17 (i)

EUR

100,000

145,368

Societe Generale:

4.576% 6/7/17 (i)

EUR

100,000

142,374

6.999%

EUR

50,000

75,848

Vivendi 5.75% 4/4/13 (Reg. S)

300,000

293,880

TOTAL FRANCE

3,463,075

Germany - 0.3%

Bayer AG:

4.842% 4/10/10 (i)

EUR

200,000

309,316

5.625% 5/23/18

GBP

150,000

275,381

BayernLB Capital Trust I 6.2032% (i)

250,000

170,500

Dresdner Bank AG 7.75% 4/27/12

300,000

301,500

Wuerttembergische Lebens AG 5.375% 6/1/26 (i)

EUR

100,000

145,457

TOTAL GERMANY

1,202,154

Hong Kong - 0.1%

Chong Hing Bank Ltd. 3.73% 12/16/16 (i)

175,000

171,430

Dah Sing Bank Ltd. 3.8256% 6/3/16 (i)

250,000

235,000

Wing Hang Bank Ltd. 6% (i)

260,000

237,481

TOTAL HONG KONG

643,911

India - 0.1%

Export-Import Bank of India 1.4769% 6/7/12 (i)

JPY

40,000,000

383,077

ICICI Bank Ltd. 3.25% 1/12/10 (Reg. S) (i)

125,000

119,683

TOTAL INDIA

502,760

Ireland - 0.6%

Allied Irish Banks PLC 5.158% 6/12/13 (i)

EUR

400,000

619,757

Ardagh Glass Group PLC 10.75% 3/1/15 pay-in-kind

EUR

99,935

142,436

Bank of Ireland UK Holdings PLC 7.4% (i)

EUR

400,000

607,767

JSC Vneshtorgbank 7% 4/13/09 (Issued by Dali Capital PLC for JSC Vneshtorgbank)

RUB

7,000,000

294,931

ROSBANK (OJSC JSCB) 8% 9/30/09 (Issued by Dali Capital PLC for ROSBANK (OJSC JSCB))

RUB

3,800,000

156,288

TransCapitalInvest Ltd. 5.67% 3/5/14 (Reg. S)

400,000

376,412

Corporate Bonds - continued

Principal Amount (d)

Value

Nonconvertible Bonds - continued

Ireland - continued

Vostochny Express Bank 9.875% 7/3/09 (Issued by Orient Express Finance for Vostochny Express Bank)

RUB

2,000,000

$ 80,354

VTB24 Capital PLC 3.82% 12/7/09 (i)

$ 270,000

259,524

TOTAL IRELAND

2,537,469

Italy - 0.2%

Banca Italease SpA 4.574% 2/2/10 (i)

EUR

400,000

559,854

IFIL Finanziaria di Partecipazioni SpA 5.375% 6/12/17

EUR

150,000

210,109

Intesa Sanpaolo SpA 6.375% 11/12/17 (i)

GBP

150,000

289,132

TOTAL ITALY

1,059,095

Kazakhstan - 0.1%

Alliance Bank JSC 9% 6/27/08

360,000

357,566

ATF Bank JSC 8.875% 11/9/09

200,000

204,802

Bank Caspian JSC 7.875% 10/17/08

100,000

98,313

TOTAL KAZAKHSTAN

660,681

Korea (South) - 0.2%

GS Caltex Corp. 5.5% 4/24/17 (Reg. S)

300,000

262,314

Hyundai Capital Services, Inc. 5.625% 1/24/12

200,000

190,096

Woori Bank 6.208% 5/2/67 (Reg. S) (i)

300,000

247,860

TOTAL KOREA (SOUTH)

700,270

Luxembourg - 0.7%

Fiat Finance & Trade Ltd. 5.625% 11/15/11

EUR

100,000

150,724

Gaz Capital SA (Luxembourg) 6.58% 10/31/13

GBP

100,000

185,301

Glencore Finance (Europe) SA:

6.5% 2/27/19

GBP

200,000

346,218

8%

450,000

444,780

ICB OJSC 6.2% 9/29/15 (Issued by Or-ICB for ICB OJSC) (i)

500,000

478,980

Lux-Development SA 6.1% 10/31/16 (e)

EUR

200,000

306,584

RBD Capital SA 6.5% 8/11/08

400,000

400,520

Russian Standard Finance SA 6.825% 9/16/09

EUR

150,000

221,326

Slavinvestbank LLC 9.875% 12/21/09 (Issued by Slavinvest Finance SA for Slavinvestbank LLC)

210,000

191,892

TNK-BP Finance SA 7.5% 7/18/16

250,000

240,000

VTB Capital SA 4.8119% 11/2/09 (i)

175,000

172,428

TOTAL LUXEMBOURG

3,138,753

Corporate Bonds - continued

Principal Amount (d)

Value

Nonconvertible Bonds - continued

Malaysia - 0.1%

IOI Ventures (L) Bhd 5.25% 3/16/15

$ 300,000

$ 289,539

Multi-National - 0.1%

WT Finance (Aust) Pty Ltd./Westfield Europe Finance PLC/WEA Finance 3.625% 6/27/12

EUR

300,000

409,452

Netherlands - 0.8%

ALB Finance BV 8.75% 4/20/11

100,000

83,433

ASML Holding NV 5.75% 6/13/17

EUR

250,000

322,055

Asset Repackaging Trust Five BV 12.274% 12/21/11 pay-in-kind (i)

EUR

113,322

168,946

BOATS Investments (Netherlands) BV 11% 3/31/17 pay-in-kind

EUR

289,554

431,920

CenterCredit International BV 8.625% 1/30/14 (Reg. S)

100,000

88,402

Deutsche Telekom International Finance BV 6.625% 7/11/11 (i)

EUR

125,000

202,547

EDP Finance BV 5.375% 11/2/12

200,000

201,488

Eureko BV 5.125% (i)

EUR

200,000

270,351

Intergas Finance BV 6.375% 5/14/17 (Reg. S)

300,000

258,750

Invitel Holdings NN 12.997% 4/15/13 (Reg. S) (i)

EUR

206,484

253,039

Media Nusantara Citra BV 10.75% 9/12/11

148,958

157,288

SABIC Europe BV 4.5% 11/28/13

EUR

200,000

281,092

Siemens Financieringsmaatschap NV 6.125% 9/14/66 (i)

GBP

150,000

269,607

TuranAlem Finance BV 6.25% 9/27/11

EUR

250,000

322,336

TOTAL NETHERLANDS

3,311,254

Norway - 0.9%

Africa Offshore Services AS 8.6963% 6/29/12 (g)(i)

100,000

93,500

Aker Floating Production ASA 8.14% 7/3/08 (i)

100,000

100,000

DDI Holding AS:

7.4494% 3/15/12 (g)(i)

100,000

97,500

9.3% 1/19/12 (j)

89,201

86,525

Kommunalbanken AS 5.125% 5/30/12

1,900,000

1,999,047

MPF Corp. (Norway) AS 9.2919% 9/20/11 (g)(i)

300,000

297,000

MPU-Multi Purpose Unit-Offshore Lift ASA 10.9% 12/22/11 (g)(i)

NOK

1,500,000

306,483

Ocean RIG ASA 6.7% 4/4/11 (g)(i)

200,000

199,000

OffRig Drilling ASA 9.75% 4/27/11 (g)

100,000

96,000

Petrolia Drilling ASA 10.75% 2/14/11

NOK

500,000

98,232

Petromena AS 10.85% 11/19/10 (g)

100,000

95,000

Corporate Bonds - continued

Principal Amount (d)

Value

Nonconvertible Bonds - continued

Norway - continued

ProdJack AS:

11.25% 2/22/13 (g)

$ 100,000

$ 90,000

11.25% 3/8/13 (g)

100,000

90,000

Sevan Marine ASA 7.7438% 5/14/13 (g)(i)

100,000

92,000

TOTAL NORWAY

3,740,287

Russia - 0.1%

Bank St. Petersburg 9.501% 11/25/09 (Issued by BSPB Finance PLC for Bank St. Petersburg)

250,000

251,528

Raspadskaya Securities Ltd. 7.5% 5/22/12

200,000

193,284

TOTAL RUSSIA

444,812

Spain - 0.2%

Bancaja Emisiones SA 4.625% (i)

EUR

275,000

285,830

Corporacion Mapfre SA 5.921% 7/24/37 (i)

EUR

250,000

337,588

Santander Issuances SA Unipersonal 5.204% 7/25/17 (i)

EUR

150,000

220,162

Telefonica Emisiones SAU 5.888% 1/31/14

GBP

100,000

192,516

TOTAL SPAIN

1,036,096

Sweden - 0.2%

PA Resources AB 9.5% 1/9/09 (g)

100,000

100,000

Svenska Handelsbanken AB 2.95% 3/15/16 (i)

200,000

193,418

Telefonaktiebolaget LM Ericsson 7.875% 6/5/08

GBP

200,000

398,449

TOTAL SWEDEN

691,867

Switzerland - 0.1%

UBS AG London Branch 6.625% 4/11/18

GBP

200,000

399,026

United Arab Emirates - 0.1%

Emirates Bank International PJSC 3.6% 12/7/16 (i)

300,000

266,835

United Kingdom - 1.4%

Alliance & Leicester PLC 4.25% 12/30/08

GBP

170,000

327,748

Amlin PLC 6.5% 12/19/26 (i)

GBP

125,000

212,668

Anglo American Capital PLC 6.875% 5/1/18 (h)

GBP

200,000

398,529

Bank of Scotland 6.375% 8/16/19

GBP

400,000

724,086

Barclays Bank PLC 6.75% 1/16/23 (i)

GBP

300,000

594,089

Broadgate PLC 6.8019% 10/5/25 (i)

GBP

41,750

67,503

Cattles PLC 7.125% 7/5/17

GBP

100,000

157,022

Getin Finance PLC 6.359% 5/13/09 (i)

EUR

100,000

150,990

ICICI Bank UK PLC 3.7094% 2/27/12 (i)

125,000

110,873

Corporate Bonds - continued

Principal Amount (d)

Value

Nonconvertible Bonds - continued

United Kingdom - continued

Lloyds TSB Group PLC 6.267% (g)(i)

$ 200,000

$ 166,243

Novae Group PLC 8.375% 4/27/17 (i)

GBP

50,000

90,776

Old Mutual Capital Funding L.P. 8%

200,000

194,800

Old Mutual PLC 4.5% 1/18/17 (i)

EUR

150,000

210,772

OTE PLC 5.375% 2/14/11

EUR

100,000

156,121

Rexam PLC 4.375% 3/15/13

EUR

250,000

353,316

Royal Bank of Scotland Group PLC 2.8475% 10/1/08 (i)

1,100,000

1,099,230

Royal Bank of Scotland PLC:

3.22% 7/24/14 (i)

200,000

197,848

5.331% (i)

EUR

100,000

124,383

UBS AG Jersey Branch 2.8838% 4/18/16 (i)

200,000

183,860

Ukrsotsbank 8% 2/22/10 (Issued by Credit Suisse First Boston International for Ukrsotsbank)

300,000

300,126

Vodafone Group PLC 3.3694% 2/27/12 (i)

160,000

151,182

TOTAL UNITED KINGDOM

5,972,165

United States of America - 2.1%

BA Covered Bond 4.125% 4/5/12

EUR

1,700,000

2,584,524

Banca Popolare di Lodi Investor Trust III 6.742% (i)

EUR

200,000

279,406

Bear Stearns Companies, Inc. 4.924% 9/26/13 (i)

EUR

240,000

348,445

BSP Finance BV 10.75% 11/1/11

100,000

93,000

Citigroup, Inc. 4.25% 2/25/30 (i)

EUR

100,000

111,993

Countrywide Home Loans, Inc. 3.25% 5/21/08

100,000

99,744

DaimlerChrysler NA Holding Corp.:

3.2975% 3/13/09 (i)

100,000

99,027

4.375% 3/16/10

EUR

250,000

383,465

General Electric Co. 5.25% 12/6/17

200,000

199,037

Goldman Sachs Group, Inc. 6.15% 4/1/18

200,000

202,310

HVB Funding Trust VIII 7.055% (i)

EUR

800,000

1,235,492

Lehman Brothers Holdings, Inc. 5.375% 10/17/12

EUR

250,000

360,528

Merrill Lynch & Co., Inc. 6.15% 4/25/13

500,000

498,955

Morgan Stanley 5.084% 7/20/12 (i)

EUR

430,000

624,613

PPL Energy Supply LLC 6.5% 5/1/18

160,000

160,452

Procter & Gamble Co. 5.125% 10/24/17

EUR

150,000

234,521

Schering-Plough Corp. 5.375% 10/1/14

EUR

200,000

290,945

SLM Corp.:

4.806% 12/15/10 (i)

EUR

200,000

270,813

Corporate Bonds - continued

Principal Amount (d)

Value

Nonconvertible Bonds - continued

United States of America - continued

SLM Corp.: - continued

4.936% 6/17/13 (i)

EUR

112,000

$ 137,703

WaMu Covered Bond Program 4.375% 5/19/14

EUR

550,000

811,004

TOTAL UNITED STATES OF AMERICA

9,025,977

TOTAL NONCONVERTIBLE BONDS

42,615,075

TOTAL CORPORATE BONDS

(Cost $42,180,249)

42,892,275

Government Obligations - 24.6%

Belgium - 0.9%

Belgian Kingdom:

4% 3/28/14

EUR

1,550,000

2,392,967

5% 3/28/35

EUR

825,000

1,322,166

TOTAL BELGIUM

3,715,133

Canada - 0.8%

Canadian Government 5.25% 6/1/12

CAD

3,250,000

3,496,517

Finland - 0.5%

Finnish Government 4.375% 7/4/19

EUR

1,350,000

2,099,645

France - 1.7%

French Republic:

4% 4/25/18

EUR

465,000

706,845

4.25% 4/25/19

EUR

350,000

540,156

5.5% 4/25/29

EUR

3,590,000

6,181,037

TOTAL FRANCE

7,428,038

Germany - 7.6%

German Federal Republic:

Inflation-Indexed Bond 1.5% 4/15/16

EUR

1,786,683

2,722,632

3.75% 1/4/17

EUR

9,300,000

14,101,258

4% 7/4/16

EUR

637,500

985,438

4% 1/4/18 (h)

EUR

785,000

1,213,209

4.25% 1/4/14

EUR

1,490,000

2,361,166

4.25% 7/4/14

EUR

6,880,000

10,882,893

4.25% 7/4/39

EUR

265,000

387,919

TOTAL GERMANY

32,654,515

Government Obligations - continued

Principal Amount (d)

Value

Japan - 10.6%

Japan Government:

0.5466% 5/8/08

JPY

550,000,000

$ 5,287,774

0.9% 6/20/13

JPY

360,000,000

3,416,573

0.92% 11/20/20 (i)

JPY

225,000,000

2,023,702

1.1% 12/20/12

JPY

150,000,000

1,440,144

1.3% 12/20/11

JPY

210,000,000

2,038,313

1.3% 3/20/15

JPY

900,000,000

8,662,933

1.5% 3/20/14

JPY

400,000,000

3,907,500

1.9% 6/20/16

JPY

826,000,000

8,256,982

2.5% 9/20/36

JPY

350,000,000

3,394,563

2.5% 9/20/37

JPY

250,000,000

2,420,986

Real Return Bond 1.1% 12/10/16

JPY

524,046,000

4,973,026

TOTAL JAPAN

45,822,496

United Kingdom - 0.9%

UK Treasury GILT:

4.75% 12/7/38

GBP

500,000

1,035,182

5% 3/7/18

GBP

1,425,000

2,906,921

TOTAL UNITED KINGDOM

3,942,103

United States of America - 1.6%

U.S. Treasury Bonds 5% 5/15/37

$ 265,000

287,194

U.S. Treasury Inflation-Indexed Notes 1.625% 1/15/15

6,097,025

6,275,174

U.S. Treasury Notes:

3.5% 2/15/18

40,000

39,150

4.375% 8/15/12

185,000

196,404

5.125% 5/15/16

215,000

238,028

TOTAL UNITED STATES OF AMERICA

7,035,950

TOTAL GOVERNMENT OBLIGATIONS

(Cost $100,880,465)

106,194,397

U.S. Government Agency - Mortgage Securities - 0.5%

Fannie Mae - 0.5%

6% 5/1/38 (h)
(Cost $2,301,416)

2,250,000

2,299,380

Asset-Backed Securities - 0.4%

Principal Amount (d)

Value

Clock Finance BV Series 2007-1 Class B2, 4.543% 2/25/15 (i)

EUR

100,000

$ 135,422

Leek Finance PLC Series 2005-15X Class BA, 6.435% 3/21/37 (i)

GBP

100,000

177,222

Mermaid Secured Finance Ltd. Series 2007-1:

Class C, 5.148% 1/30/40 (i)

EUR

50,000

72,138

Class D, 5.348% 1/30/40 (i)

EUR

100,000

141,873

Preferred Term Securities XII Ltd. 4.42% 12/24/33 (g)(i)

400,000

352,000

Preferred Term Securities XXIII Ltd. 3% 12/22/36 (g)(i)

327,273

293,384

Prime Bricks Series 2007-1:

Class B, 5.148% 1/30/40 (i)

EUR

50,000

72,357

Class C, 5.438% 1/30/40 (i)

EUR

50,000

70,796

Promise K 2006-1 GmbH Series I 2006-1 Class D, 5.099% 3/10/17 (i)

EUR

100,000

127,636

Provide Bricks Series 2007-1 Class B, 4.738% 1/30/40 (i)

EUR

200,000

294,236

Whinstone Capital Management Ltd. Series 2005-1X Class B1, 6.7775% 10/25/45 (i)

GBP

70,098

111,498

TOTAL ASSET-BACKED SECURITIES

(Cost $1,896,892)

1,848,562

Collateralized Mortgage Obligations - 0.3%

Private Sponsor - 0.3%

Arkle Master Issuer PLC:

floater:

Series 2006-1X Class 5M1, 4.625% 2/17/52 (i)

EUR

100,000

136,761

Series 2007-1X Class 1C, 3.33% 2/17/52 (i)

200,000

198,560

Series 2006-1X Class 2C, 4.705% 2/17/52 (i)

EUR

150,000

229,435

Arran Residential Mortgages Funding No. 1 PLC Series 2006-1X Class CC, 4.821% 4/12/56 (i)

EUR

100,000

145,721

Permanent Master Issuer PLC floater Series 2006-1 Class 2C, 3.1131% 7/17/42 (i)

400,000

359,172

TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS

(Cost $1,082,252)

1,069,649

Commercial Mortgage Securities - 0.3%

France - 0.0%

Paris Prime Community Real Estate Series 2006-1 Class B, 5.044% 4/22/14 (g)(i)

EUR

72,109

103,355

Commercial Mortgage Securities - continued

Principal Amount (d)

Value

Ireland - 0.1%

European Property Capital Series 4 Class C, 6.165% 7/20/14 (i)

GBP

41,701

$ 77,937

German Residential Asset Note Distributor PLC Series 1 Class A, 5.024% 7/20/16 (i)

EUR

179,264

263,905

Rivoli Pan Europe PLC Series 2006-1 Class B 4.654% 8/3/18 (i)

EUR

100,000

134,988

TOTAL IRELAND

476,830

Japan - 0.1%

JLOC 37 LLC (Reg. S) Series X Class B1, 1.3125% 1/15/15 (i)

JPY

16,846,000

160,118

Netherlands - 0.0%

Skyline BV Series 2007-1 Class D, 5.604% 7/22/43 (i)

EUR

100,000

121,766

United Kingdom - 0.1%

Canary Wharf Finance II PLC Series 3MUK Class C2, 6.4338% 10/22/37 (i)

GBP

150,000

231,820

TOTAL COMMERCIAL MORTGAGE SECURITIES

(Cost $1,091,768)

1,093,889

Supranational Obligations - 0.4%

European Investment Bank 5.625% 6/7/32
(Cost $1,749,508)

GBP

800,000

1,748,562

Preferred Securities - 0.0%

Cayman Islands - 0.0%

MUFG Capital Finance 1 Ltd. 6.346% (i)
(Cost $175,000)

$ 175,000

161,098

Money Market Funds - 7.0%

Shares

Fidelity Cash Central Fund, 2.51% (b)

28,682,685

28,682,685

Fidelity Securities Lending Cash Central Fund, 2.44% (b)(c)

1,494,750

1,494,750

TOTAL MONEY MARKET FUNDS

(Cost $30,177,435)

30,177,435

Cash Equivalents - 0.0%

Maturity Amount

Value

Investments in repurchase agreements in a joint trading account at 1.95%, dated 4/30/08 due 5/1/08 (Collateralized by U.S. Treasury Obligations) #
(Cost $44,000)

$ 44,002

$ 44,000

TOTAL INVESTMENT PORTFOLIO - 99.9%

(Cost $401,398,302)

430,489,613

NET OTHER ASSETS - 0.1%

565,545

NET ASSETS - 100%

$ 431,055,158

Currency Abbreviations

CAD

-

Canadian dollar

EUR

-

European Monetary Unit

GBP

-

British pound

JPY

-

Japanese yen

NOK

-

Norwegian krone

RUB

-

Russian ruble

Legend

(a) Non-income producing

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

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

(d) Principal amount is stated in United States dollars unless otherwise noted.

(e) Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end.

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

(g) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $3,507,541 or 0.8% of net assets.

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

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

(j) 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 $86,525 or 0.0% of net assets.

Additional information on each holding is as follows:

Security

Acquisition Date

Acquisition Cost

DDI Holding AS 9.3% 1/19/12

3/22/07

$ 92,212

# Additional Information on each counterparty to the repurchase agreement is as follows:

Repurchase Agreement / Counterparty

Value

$44,000 due 5/01/08 at 1.95%

BNP Paribas Securities Corp.

$ 20,530

Fortis Securities LLC

9,393

HSBC Securities (USA), Inc.

4,692

ING Financial Markets LLC

9,385

$ 44,000

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund

Income earned

Fidelity Cash Central Fund

$ 426,537

Fidelity Securities Lending Cash Central Fund

18,021

Total

$ 444,558

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

2.1%

AAA,AA,A

28.0%

BBB

2.7%

BB

0.8%

B

0.1%

CCC,CC,C

0.0%

Not Rated

1.6%

Equities

56.4%

Short-Term Investments and Net Other Assets

8.3%

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. All ratings are as of the report date and do not reflect subsequent downgrades. Percentages are adjusted for the effect of futures contracts, if applicable.

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

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

April 30, 2008 (Unaudited)

Assets

Investment in securities, at value (including securities loaned of $1,423,335 and repurchase agreements of $44,000) - See accompanying schedule:

Unaffiliated issuers (cost $371,220,867)

$ 400,312,178

Fidelity Central Funds (cost $30,177,435)

30,177,435

Total Investments (cost $401,398,302)

$ 430,489,613

Cash

3,644

Foreign currency held at value (cost $315)

323

Receivable for investments sold
Regular delivery

18,920,416

Delayed delivery

3,458,912

Receivable for fund shares sold

1,054,128

Dividends receivable

551,366

Interest receivable

1,921,309

Distributions receivable from Fidelity Central Funds

61,478

Prepaid expenses

704

Other receivables

30,961

Total assets

456,492,854

Liabilities

Payable for investments purchased
Regular delivery

$ 16,789,477

Delayed delivery

6,058,771

Payable for fund shares redeemed

687,031

Accrued management fee

246,290

Other affiliated payables

92,599

Other payables and accrued expenses

68,778

Collateral on securities loaned, at value

1,494,750

Total liabilities

25,437,696

Net Assets

$ 431,055,158

Net Assets consist of:

Paid in capital

$ 403,055,019

Undistributed net investment income

2,467,039

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions

(3,590,166)

Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies

29,123,266

Net Assets, for 19,363,282 shares outstanding

$ 431,055,158

Net Asset Value, offering price and redemption price per share ($431,055,158 ÷ 19,363,282 shares)

$ 22.26

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

Semiannual Report

Financial Statements - continued

Statement of Operations

Six months ended April 30, 2008 (Unaudited)

Investment Income

Dividends

$ 2,322,136

Interest

2,806,037

Income from Fidelity Central Funds

444,558

5,572,731

Less foreign taxes withheld

(126,307)

Total income

5,446,424

Expenses

Management fee

$ 1,357,242

Transfer agent fees

431,831

Accounting and security lending fees

99,639

Custodian fees and expenses

207,811

Independent trustees' compensation

762

Registration fees

31,294

Audit

52,955

Legal

730

Miscellaneous

6,029

Total expenses before reductions

2,188,293

Expense reductions

(43,573)

2,144,720

Net investment income (loss)

3,301,704

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities:

Unaffiliated issuers (net of foreign taxes of $(957))

(3,022,067)

Foreign currency transactions

247,351

Total net realized gain (loss)

(2,774,716)

Change in net unrealized appreciation (depreciation) on:

Investment securities (net of decrease in deferred foreign taxes of $2,855)

(14,715,579)

Assets and liabilities in foreign currencies

(49,289)

Total change in net unrealized appreciation (depreciation)

(14,764,868)

Net gain (loss)

(17,539,584)

Net increase (decrease) in net assets resulting from operations

$ (14,237,880)

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

Semiannual Report

Statement of Changes in Net Assets

Six months ended April 30, 2008
(Unaudited)

Year ended
October 31,
2007

Increase (Decrease) in Net Assets

Operations

Net investment income (loss)

$ 3,301,704

$ 4,830,566

Net realized gain (loss)

(2,774,716)

32,398,007

Change in net unrealized appreciation (depreciation)

(14,764,868)

24,988,350

Net increase (decrease) in net assets resulting
from operations

(14,237,880)

62,216,923

Distributions to shareholders from net investment income

(5,015,376)

(2,296,243)

Distributions to shareholders from net realized gain

(27,812,540)

(24,110,533)

Total distributions

(32,827,916)

(26,406,776)

Share transactions

Proceeds from sales of shares

131,154,251

157,223,429

Reinvestment of distributions

31,418,376

25,322,315

Cost of shares redeemed

(55,726,481)

(107,252,455)

Net increase (decrease) in net assets resulting from share transactions

106,846,146

75,293,289

Redemption fees

13,278

14,161

Total increase (decrease) in net assets

59,793,628

111,117,597

Net Assets

Beginning of period

371,261,530

260,143,933

End of period (including undistributed net investment income of $2,467,039 and undistributed net investment income of $4,821,537, respectively)

$ 431,055,158

$ 371,261,530

Other Information

Shares

Sold

5,887,635

6,881,716

Issued in reinvestment of distributions

1,384,069

1,178,330

Redeemed

(2,525,359)

(4,712,119)

Net increase (decrease)

4,746,345

3,347,927

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

Semiannual Report

Financial Highlights

Six months ended April 30, 2008

Years ended October 31,

(Unaudited)

2007

2006

2005

2004

2003

Selected Per-Share Data

Net asset value, beginning of period

$ 25.40

$ 23.08

$ 21.95

$ 19.69

$ 18.06

$ 14.84

Income from Investment
Operations

Net investment income (loss) D

.19

.35

.28

.17 G

.10 H

.15

Net realized and unrealized gain (loss)

(1.17)

4.27

2.66

2.54

1.85

3.29

Total from investment operations

(.98)

4.62

2.94

2.71

1.95

3.44

Distributions from net investment income

(.33)

(.20)

(.14)

(.13)

(.32)

(.22)

Distributions from net realized gain

(1.83)

(2.10)

(1.67)

(.32)

-

-

Total distributions

(2.16)

(2.30)

(1.81)

(.45)

(.32)

(.22)

Redemption fees added to paid in capital D, J

-

-

-

-

-

-

Net asset value, end of period

$ 22.26

$ 25.40

$ 23.08

$ 21.95

$ 19.69

$ 18.06

Total Return B, C

(4.02)%

21.83%

14.23%

13.92%

10.93%

23.49%

Ratios to Average Net Assets E, I

Expenses before reductions

1.14% A

1.14%

1.18%

1.17%

1.20%

1.29%

Expenses net of fee waivers, if any

1.14% A

1.14%

1.18%

1.17%

1.20%

1.29%

Expenses net of all reductions

1.12% A

1.12%

1.14%

1.15%

1.19%

1.28%

Net investment income (loss)

1.72% A

1.55%

1.27%

.80% G

.54% H

.98%

Supplemental Data

Net assets, end of period (000 omitted)

$ 431,055

$ 371,262

$ 260,144

$ 191,247

$ 137,619

$ 115,864

Portfolio turnover rate F

243% A

169%

208%

95%

94%

113%

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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

G Investment income per share reflects a special dividend which amounted to $.03 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .66%.

H Net investment income per share includes approximately $.05 per share received as a result of a reorganization of an issuer that was in bankruptcy. Excluding this non-recurring amount, the ratio of net investment income (loss) to average net assets would have been .26%.

I 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 fee 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.

J Amount represents less than $.01 per share.

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

Semiannual Report

Notes to Financial Statements

For the period ended April 30, 2008 (Unaudited)

1. Organization.

Fidelity Global Balanced 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.

2. Investments in Fidelity Central Funds.

The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.

The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.

A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC's web site or upon request.

3. Significant Accounting Policies.

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. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:

Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.

Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Debt securities, including restricted securities, for which quotations are readily available, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

3. Significant Accounting Policies - continued

Security Valuation - continued

yield or price of bonds of comparable quality, coupon, maturity and type as well as available dealer supplied prices. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.

When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds and monitoring current market trading activity, interest rates, credit quality and default rate for debt instruments. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.

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.

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. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain

Semiannual Report

3. Significant Accounting Policies - continued

Investment Transactions and Income - continued

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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are 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.

Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements in connection with the tax positions expected to be taken in the initial filing of the Fund's tax return. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service. Foreign taxes are provided for based on the 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. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), market discount, partnerships, deferred trustees compensation and losses deferred due to wash sales.

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

Unrealized appreciation

$ 35,997,933

Unrealized depreciation

(8,613,287)

Net unrealized appreciation (depreciation)

$ 27,384,646

Cost for federal income tax purposes

$ 403,104,967

Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to 1.00% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.

New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and results in expanded disclosures about fair value measurements.

4. Operating Policies.

Repurchase Agreements. 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 which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.

Delayed Delivery Transactions and When-Issued Securities. The Fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and

Semiannual Report

4. Operating Policies - continued

Delayed Delivery Transactions and When-Issued Securities - continued

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. The payables and receivables associated with the purchases and sales of delayed delivery securities having the same coupon, settlement date and broker are offset. Delayed delivery or when-issued securities that have been purchased from and sold to different brokers are reflected as both payables and receivables in the fund's Statement of Assets and Liabilities under the caption "Delayed delivery". 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.

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.

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $470,162,527 and $409,781,233, respectively.

6. 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 .45% of the Fund's average net assets and a group fee rate that averaged .26% 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 .71% of the Fund's average net assets.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

6. Fees and Other Transactions with Affiliates - continued

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc, (FIIOC), an affiliate of FMR, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. Prior to January 1, 2008, Fidelity Service Company, Inc. (FSC), also an affiliate of FMR was the Fund's transfer agent. For the period the transfer agent fees were equivalent to an annualized rate of .22% 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.

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 were $5,669 for the period.

7. 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, which amounted to $365 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.

8. Security Lending.

The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, 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. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses

Semiannual Report

8. Security Lending - continued

associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $18,021.

9. 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 $37,417 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 $1,274 and $4,882, respectively.

10. Other.

The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.

In December 2006, the Independent Trustees, with the assistance of independent counsel, completed an investigation regarding gifts, gratuities and business entertainment provided by certain brokers to certain individuals who were employed on FMR's domestic equity trading desk during the period 2002 to 2004. The Independent Trustees and FMR agreed that, despite the absence of proof that the Fidelity mutual funds experienced diminished execution quality as a result of the improper receipt of gifts and business entertainment, the conduct at issue was serious and was worthy of redress. Accordingly, the Independent Trustees requested, and FMR agreed to make, a payment of $42 million plus accrued interest, which equaled approximately $7.3 million, to certain Fidelity mutual funds.

In March 2008, the Trustees approved a method for allocating this payment among the funds and, in total, FMR paid the fund $9,378, which is recorded in the accompanying Statement of Operations.

In a related administrative order dated March 5, 2008, the U.S. Securities and Exchange Commission ("SEC") announced a settlement with FMR and FMR Co., Inc. (an affiliate

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

10. Other - continued

of FMR) involving the SEC's regulatory rules for investment advisers and the improper receipt of gifts, gratuities and business entertainment. Without admitting or denying the SEC's findings, FMR agreed to pay an $8 million civil penalty to the United States Treasury.

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 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

To Visit Fidelity

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

Arizona

7001 West Ray Road
Chandler, AZ

15445 N. Scottsdale Road
Scottsdale, AZ

California

815 East Birch Street
Brea, CA

1411 Chapin Avenue
Burlingame, CA

851 East Hamilton Avenue
Campbell, CA

19200 Von Karman Avenue
Irvine, CA

601 Larkspur Landing Circle
Larkspur, CA

2000 Avenue of the Stars
Los Angeles, CA

27101 Puerta Real
Mission Viejo, CA

73-575 El Paseo
Palm Desert, CA

251 University Avenue
Palo Alto, CA

123 South Lake Avenue
Pasadena, CA

16656 Bernardo Ctr. Drive
Rancho Bernardo, CA

1220 Roseville Parkway
Roseville, CA

1740 Arden Way
Sacramento, CA

7676 Hazard Center Drive
San Diego, CA

11943 El Camino Real
San Diego, CA

8 Montgomery Street
San Francisco, CA

3793 State Street
Santa Barbara, CA

1200 Wilshire Boulevard
Santa Monica, CA

398 West El Camino Real
Sunnyvale, CA

111 South Westlake Blvd
Thousand Oaks, CA

21701 Hawthorne Boulevard
Torrance, CA

2001 North Main Street
Walnut Creek, CA

6326 Canoga Avenue
Woodland Hills, CA

Colorado

281 East Flatiron Circle
Broomfield, CO

1625 Broadway
Denver, CO

9185 Westview Road
Lone Tree, 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

400 Delaware Avenue
Wilmington, DE

Florida

175 East Altamonte Drive
Altamonte Springs, FL

4400 N. Federal Highway
Boca Raton, FL

121 Alhambra Plaza
Coral Gables, FL

2948 N. Federal Highway
Ft. Lauderdale, FL

4671 Town Center Parkway
Jacksonville, FL

8880 Tamiami Trail, North
Naples, FL

230 Royal Palm Way
Palm Beach, FL

3501 PGA Boulevard
Palm Beach Gardens, FL

3550 Tamiami Trail, South
Sarasota, FL

1502 N. Westshore Blvd.
Tampa, FL

2465 State Road 7
Wellington, FL

Georgia

3445 Peachtree Road, N.E.
Atlanta, GA

1000 Abernathy Road
Atlanta, GA

Illinois

One North LaSalle Street
Chicago, IL

401 North Michigan Avenue
Chicago, IL

One Skokie Valley Road
Highland Park, IL

1415 West 22nd Street
Oak Brook, IL

15105 S LaGrange Road
Orland Park, IL

1572 East Golf Road
Schaumburg, IL

Indiana

4729 East 82nd Street
Indianapolis, IN

8480 Keystone Crossing
Indianapolis, IN

Kansas

5400 College Boulevard
Overland Park, KS

Maine

Three Canal Plaza
Portland, ME

Maryland

7315 Wisconsin Avenue
Bethesda, MD

610 York Road
Towson, MD

Massachusetts

801 Boylston Street
Boston, MA

155 Congress Street
Boston, MA

300 Granite Street
Braintree, MA

44 Mall Road
Burlington, MA

238 Main Street
Cambridge, MA

200 Endicott Street
Danvers, MA

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

Semiannual Report

405 Cochituate Road
Framingham, MA

551 Boston Turnpike
Shrewsbury, MA

Michigan

500 E. Eisenhower Pkwy.
Ann Arbor, MI

280 Old N. Woodward Ave.
Birmingham, MI

30200 Northwestern Hwy.
Farmington Hills, MI

43420 Grand River Avenue
Novi, MI

Minnesota

7740 France Avenue South
Edina, MN

8342 3rd Street North
Oakdale, MN

Missouri

1524 South Lindbergh Blvd.
St. Louis, MO

Nevada

2225 Village Walk Drive
Henderson, NV

New Jersey

501 Route 73 South
Marlton, NJ

150 Essex Street
Millburn, NJ

35 Morris Street
Morristown, NJ

396 Route 17, North
Paramus, NJ

3518 Route 1 North
Princeton, NJ

530 Broad Street
Shrewsbury, NJ

New Mexico

2261 Q Street NE
Albuquerque, NM

New York

1130 Franklin Avenue
Garden City, NY

37 West Jericho Turnpike
Huntington Station, NY

1271 Avenue of the Americas
New York, NY

980 Madison Avenue
New York, NY

61 Broadway
New York, NY

350 Park Avenue
New York, NY

200 Fifth Avenue
New York, NY

733 Third Avenue
New York, NY

11 Penn Plaza
New York, NY

2070 Broadway
New York, NY

1075 Northern Blvd.
Roslyn, NY

799 Central Park Avenue
Scarsdale, NY

North Carolina

4611 Sharon Road
Charlotte, NC

7011 Fayetteville Road
Durham, NC

Ohio

3805 Edwards Road
Cincinnati, OH

1324 Polaris Parkway
Columbus, OH

1800 Crocker Road
Westlake, OH

28699 Chagrin Boulevard
Woodmere Village, OH

Oregon

7493 SW Bridgeport Road
Tigard, OR

Pennsylvania

600 West DeKalb Pike
King of Prussia, PA

1735 Market Street
Philadelphia, PA

12001 Perry Highway
Wexford, PA

Rhode Island

10 Memorial Boulevard
Providence, RI

Tennessee

3018 Peoples Street
Johnson City, TN

7628 West Farmington Blvd.
Germantown, TN

2035 Mallory Lane
Franklin, TN

Texas

10000 Research Boulevard
Austin, TX

4001 Northwest Parkway
Dallas, TX

12532 Memorial Drive
Houston, TX

2701 Drexel Drive
Houston, TX

6560 Fannin Street
Houston, TX

1701 Lake Robbins Drive
The Woodlands, TX

6500 N. MacArthur Blvd.
Irving, TX

6005 West Park Boulevard
Plano, TX

14100 San Pedro
San Antonio, TX

1576 East Southlake Blvd.
Southlake, TX

Utah

279 West South Temple
Salt Lake City, UT

Virginia

1861 International Drive
McLean, VA

Washington

10500 NE 8th Street
Bellevue, WA

1518 6th Avenue
Seattle, WA

Washington, DC

1900 K Street, N.W.
Washington, DC

Wisconsin

16020 West Bluemound Road
Brookfield, WI

Semiannual Report

Semiannual Report

Semiannual Report

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management & Research
(U.K.) Inc.

Fidelity Research & Analysis Company

Fidelity International Investment
Advisors

Fidelity Investments Japan Limited

Fidelity International Investment
Advisors (U.K.) Limited

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.
Boston, MA

Fidelity Service Company, Inc.
Boston, MA

Custodian

Brown Brothers Harriman & Company

The Fidelity Telephone Connection

Mutual Fund 24-Hour Service

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

Product Information 1-800-544-8888

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

GBL-USAN-0608
1.848652.100

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. Investments

(a) Not applicable.

(b) Not applicable

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

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Not applicable.

Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

Not applicable.

Item 10. 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 11. 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 second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trust's internal control over financial reporting.

Item 12. 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/ John Hebble

John Hebble

President and Treasurer

Date:

June 27, 2008

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/ John Hebble

John Hebble

President and Treasurer

Date:

June 27, 2008

By:

/s/Joseph B. Hollis

Joseph B. Hollis

Chief Financial Officer

Date:

June 27, 2008