N-Q 1 main.htm

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

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-3587

Fidelity Financial 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:

November 30

 

 

Date of reporting period:

February 28, 2010

Item 1. Schedule of Investments

Quarterly Holdings Report

for

Fidelity® Convertible Securities Fund

February 28, 2010 

1.797939.106

CVS-QTLY-0410

Investments February 28, 2010 (Unaudited)

Showing Percentage of Net Assets

Corporate Bonds - 56.9%

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - 55.7%

CONSUMER DISCRETIONARY - 3.6%

Auto Components - 0.1%

BorgWarner, Inc. 3.5% 4/15/12

$ 910

$ 1,181

Diversified Consumer Services - 0.6%

Ingersoll-Rand Global Holding Co. Ltd. 4.5% 4/15/12

490

910

Regis Corp. 5% 7/15/14

4,230

5,282

Stewart Enterprises, Inc. 3.375% 7/15/16 (g)

11,000

8,841

 

15,033

Hotels, Restaurants & Leisure - 0.8%

WMS Industries, Inc.:

2.75% 7/15/10 (g)

4,000

11,506

2.75% 7/15/10

2,800

8,054

 

19,560

Household Durables - 0.0%

Newell Rubbermaid, Inc. 5.5% 3/15/14

590

1,033

Media - 1.6%

Regal Entertainment Group 6.25% 3/15/11 (g)

19,297

19,683

Virgin Media, Inc. 6.5% 11/15/16 (g)

8,000

9,453

XM Satellite Radio, Inc. 7% 12/1/14 (g)

10,000

9,288

 

38,424

Specialty Retail - 0.5%

Asbury Automotive Group, Inc. 3% 9/15/12 (g)

3,000

2,678

Charming Shoppes, Inc. 1.125% 5/1/14

5,000

3,669

Sonic Automotive, Inc. 5% 10/1/29

1,180

1,239

United Auto Group, Inc. 3.5% 4/1/26

4,533

4,550

 

12,136

TOTAL CONSUMER DISCRETIONARY

87,367

CONSUMER STAPLES - 4.2%

Beverages - 0.6%

Molson Coors Brewing Co. 2.5% 7/30/13

14,000

14,893

Food & Staples Retailing - 2.0%

Nash-Finch Co. 1.6314% 3/15/35 (d)

24,480

11,307

Rite Aid Corp. 8.5% 5/15/15

24,100

24,311

The Pantry, Inc. 3% 11/15/12

14,000

12,521

 

48,139

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

CONSUMER STAPLES - continued

Food Products - 1.6%

Smithfield Foods, Inc. 4% 6/30/13

$ 22,250

$ 22,791

Tyson Foods, Inc. 3.25% 10/15/13

13,000

15,543

 

38,334

TOTAL CONSUMER STAPLES

101,366

ENERGY - 13.9%

Energy Equipment & Services - 2.5%

Exterran Holdings, Inc. 4.25% 6/15/14

10,000

11,930

Global Industries Ltd. 2.75% 8/1/27 (g)

10,000

6,238

Hercules Offshore, Inc. 3.375% 6/1/38 (g)

30,000

24,123

Hornbeck Offshore Services, Inc. 1.625% 11/15/26 (d)(g)

5,000

4,089

Oil States International, Inc. 2.375% 7/1/25 (g)

4,500

6,527

SESI LLC 1.5% 12/15/26 (d)(g)

7,000

6,432

 

59,339

Oil, Gas & Consumable Fuels - 11.4%

Alpha Natural Resources, Inc. 2.375% 4/15/15

35,000

39,260

Chesapeake Energy Corp. 2.5% 5/15/37

70,250

61,167

Goodrich Petroleum Corp. 3.25% 12/1/26

6,000

5,611

Massey Energy Co. 3.25% 8/1/15

10,000

9,015

Patriot Coal Corp. 3.25% 5/31/13 (g)

6,000

4,995

Peabody Energy Corp. 4.75% 12/15/66

117,250

120,169

Pioneer Natural Resources Co. 2.875% 1/15/38

10,000

10,588

Quicksilver Resources, Inc. 1.875% 11/1/24 (g)

14,500

16,937

Western Refining, Inc. 5.75% 6/15/14

7,810

5,711

 

273,453

TOTAL ENERGY

332,792

FINANCIALS - 1.2%

Diversified Financial Services - 1.2%

The NASDAQ Stock Market, Inc. 2.5% 8/15/13

30,000

28,425

HEALTH CARE - 5.2%

Health Care Equipment & Supplies - 3.4%

Beckman Coulter, Inc. 2.5% 12/15/36 (g)

8,500

9,574

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

HEALTH CARE - continued

Health Care Equipment & Supplies - continued

Inverness Medical Innovations, Inc.:

3% 5/15/16 (g)

$ 21,000

$ 22,785

3% 5/15/16

10,000

10,850

Kinetic Concepts, Inc. 3.25% 4/15/15 (g)

15,000

15,585

Medtronic, Inc. 1.625% 4/15/13

16,000

16,560

SonoSite, Inc. 3.75% 7/15/14

7,000

6,987

 

82,341

Health Care Providers & Services - 0.2%

Omnicare, Inc. 3.25% 12/15/35

7,000

5,600

Life Sciences Tools & Services - 0.2%

Charles River Laboratories International, Inc. 2.25% 6/15/13 (g)

4,000

4,000

Pharmaceuticals - 1.4%

Biovail Corp. 5.375% 8/1/14

10,000

11,925

Nektar Therapeutics 3.25% 9/28/12

9,000

8,494

Valeant Pharmaceuticals International 4% 11/15/13

10,000

12,800

 

33,219

TOTAL HEALTH CARE

125,160

INDUSTRIALS - 10.3%

Aerospace & Defense - 0.9%

Alliant Techsystems, Inc. 2.75% 9/15/11

14,000

14,263

GenCorp, Inc. 4.0625% 12/31/39 (g)

7,830

6,176

 

20,439

Airlines - 2.2%

AirTran Holdings, Inc. 7% 7/1/23

10,000

10,013

AMR Corp. 6.25% 10/15/14

1,990

2,306

Continental Airlines, Inc. 4.5% 1/15/15

9,280

11,322

U.S. Airways Group, Inc. 7.25% 5/15/14

1,200

2,168

UAL Corp.:

4.5% 6/30/21 (g)

10,500

9,791

4.5% 6/30/21

5,000

4,663

6% 10/15/29

3,600

7,629

US Airways Group, Inc. 7% 9/30/20 (g)

4,810

4,576

 

52,468

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

INDUSTRIALS - continued

Commercial Services & Supplies - 1.0%

Metalico, Inc. 7% 4/30/28

$ 32,500

$ 23,725

Construction & Engineering - 0.7%

MasTec, Inc. 4.25% 12/15/14 (g)

8,000

8,680

Quanta Services, Inc. 3.75% 4/30/26 (g)

7,000

7,341

 

16,021

Electrical Equipment - 1.6%

C&D Technologies, Inc.:

5.25% 11/1/25 (g)

4,400

2,635

5.25% 11/1/25

32,596

19,517

Evergreen Solar, Inc. 4% 7/15/13

4,000

1,860

General Cable Corp. 4.5% 11/15/29 (d)

14,800

13,249

SunPower Corp. 4.75% 4/15/14

2,020

1,990

 

39,251

Industrial Conglomerates - 0.1%

Textron, Inc. 4.5% 5/1/13

1,440

2,396

Machinery - 0.9%

Greenbrier Companies, Inc.:

2.375% 5/15/26 (g)

5,500

3,885

2.375% 5/15/26

8,000

5,650

Terex Corp. 4% 6/1/15

1,090

1,515

Trinity Industries, Inc. 3.875% 6/1/36

15,000

10,969

 

22,019

Marine - 1.3%

Excel Maritime Carriers Ltd. 1.875% 10/15/27 (g)

34,000

19,040

Horizon Lines, Inc. 4.25% 8/15/12 (g)

15,000

12,413

 

31,453

Road & Rail - 1.6%

Hertz Global Holdings, Inc. 5.25% 6/1/14

28,000

37,590

Trading Companies & Distributors - 0.0%

United Rentals, Inc. 4% 11/15/15

960

898

TOTAL INDUSTRIALS

246,260

INFORMATION TECHNOLOGY - 14.9%

Communications Equipment - 1.8%

CommScope, Inc. 3.25% 7/1/15

10,000

11,475

Finisar Corp. 5% 10/15/29 (g)

2,500

3,422

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

INFORMATION TECHNOLOGY - continued

Communications Equipment - continued

JDS Uniphase Corp. 1% 5/15/26 (g)

$ 14,000

$ 12,075

L-3 Communications Corp. 3% 8/1/35

3,000

3,131

Lucent Technologies, Inc. 2.875% 6/15/25

10,000

8,406

Symmetricom, Inc. 3.25% 6/15/25

5,214

5,136

 

43,645

Computers & Peripherals - 1.7%

EMC Corp. 1.75% 12/1/13 (g)

17,000

20,953

Hutchinson Technology, Inc. 3.25% 1/15/26

11,000

8,910

SanDisk Corp. 1% 5/15/13

13,000

10,707

 

40,570

Electronic Equipment & Components - 1.0%

Anixter International, Inc. 1% 2/15/13 (g)

4,540

4,112

Itron, Inc. 2.5% 8/1/26

5,000

5,891

Newport Corp. 2.5% 2/15/12 (g)

3,750

3,546

SYNNEX Corp. 4% 5/15/18 (g)

10,000

11,776

 

25,325

Internet Software & Services - 0.4%

VeriSign, Inc. 3.25% 8/15/37

10,000

8,815

IT Services - 1.3%

Alliance Data Systems Corp. 4.75% 5/15/14 (g)

10,200

13,821

BearingPoint, Inc. 3.1% 12/15/24 (c)(g)

8,000

0*

CACI International, Inc. 2.125% 5/1/14

6,000

6,330

DST Systems, Inc. 4.125% 8/15/23

10,100

10,088

 

30,239

Semiconductors & Semiconductor Equipment - 8.3%

Advanced Micro Devices, Inc. 6% 5/1/15

25,000

23,033

Amkor Technology, Inc. 6% 4/15/14 (g)

10,890

23,727

Conexant Systems, Inc. 4% 3/1/26

7,000

6,703

Intel Corp. 3.25% 8/1/39 (g)

58,000

65,108

LTX-Credence Corp. 3.5% 5/15/11

10,333

7,750

Micron Technology, Inc. 4.25% 10/15/13

6,130

11,770

ON Semiconductor Corp.:

1.875% 12/15/25 (g)

3,750

4,784

2.625% 12/15/26

35,330

35,948

PMC-Sierra, Inc. 2.25% 10/15/25

10,000

11,638

Xilinx, Inc. 3.125% 3/15/37

10,000

9,325

 

199,786

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

INFORMATION TECHNOLOGY - continued

Software - 0.4%

Nuance Communications, Inc. 2.75% 8/15/27

$ 9,085

$ 9,239

TOTAL INFORMATION TECHNOLOGY

357,619

MATERIALS - 0.7%

Metals & Mining - 0.7%

ArcelorMittal SA 5% 5/15/14

2,170

3,167

Goldcorp, Inc. 2% 8/1/14 (g)

5,000

5,594

Newmont Mining Corp. 1.625% 7/15/17

5,000

6,387

Steel Dynamics, Inc. 5.125% 6/15/14

860

1,046

 

16,194

TELECOMMUNICATION SERVICES - 1.7%

Diversified Telecommunication Services - 0.8%

Level 3 Communications, Inc. 7% 3/15/15

10,000

11,838

Time Warner Telecom, Inc. 2.375% 4/1/26

6,000

6,315

 

18,153

Wireless Telecommunication Services - 0.9%

Leap Wireless International, Inc. 4.5% 7/15/14

26,000

22,394

TOTAL TELECOMMUNICATION SERVICES

40,547

TOTAL CONVERTIBLE BONDS

1,335,730

Nonconvertible Bonds - 1.2%

CONSUMER DISCRETIONARY - 0.1%

Hotels, Restaurants & Leisure - 0.1%

Ambassadors International, Inc. 10% 1/15/12
pay-in-kind (g)

2,186

2,186

FINANCIALS - 0.3%

Consumer Finance - 0.3%

GMAC LLC:

7.5% 12/31/13

4,264

4,179

8% 12/31/18

3,812

3,526

 

7,705

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Nonconvertible Bonds - continued

INFORMATION TECHNOLOGY - 0.8%

Semiconductors & Semiconductor Equipment - 0.8%

Freescale Semiconductor, Inc. 9.875% 12/15/14
pay-in-kind (h)

$ 22,024

$ 18,769

TOTAL NONCONVERTIBLE BONDS

28,660

TOTAL CORPORATE BONDS

(Cost $1,361,321)

1,364,390

Common Stocks - 14.7%

Shares

 

CONSUMER DISCRETIONARY - 1.3%

Auto Components - 0.4%

Johnson Controls, Inc.

344,134

10,703

Diversified Consumer Services - 0.4%

Service Corp. International

1,143,000

9,213

Hotels, Restaurants & Leisure - 0.5%

Ambassadors International, Inc. (a)(f)

1,843,012

922

Domino's Pizza, Inc. (a)

130,400

1,629

Las Vegas Sands Corp. (a)(e)

558,200

9,283

 

11,834

TOTAL CONSUMER DISCRETIONARY

31,750

ENERGY - 0.3%

Oil, Gas & Consumable Fuels - 0.3%

McMoRan Exploration Co. (a)(e)

450,000

7,776

FINANCIALS - 6.4%

Commercial Banks - 2.7%

Huntington Bancshares, Inc.

5,820,500

27,997

KeyCorp

5,214,100

37,281

 

65,278

Common Stocks - continued

Shares

Value (000s)

FINANCIALS - continued

Diversified Financial Services - 3.6%

Bank of America Corp.

5,181,985

$ 86,332

Thrifts & Mortgage Finance - 0.1%

Washington Mutual, Inc. (a)

2,959,042

784

TOTAL FINANCIALS

152,394

INFORMATION TECHNOLOGY - 2.1%

Communications Equipment - 0.6%

EMCORE Corp. (a)(e)

172,258

203

Finisar Corp. (a)(e)

1,174,120

14,712

 

14,915

Electronic Equipment & Components - 0.5%

L-1 Identity Solutions, Inc. (a)

100,000

852

Viasystems Group, Inc. (a)

183,215

3,998

Viasystems Group, Inc. (a)(g)

183,214

3,598

Viasystems Group, Inc. (a)(g)

183,214

3,518

 

11,966

Semiconductors & Semiconductor Equipment - 1.0%

Amkor Technology, Inc. (a)

843,200

5,076

ON Semiconductor Corp. (a)

2,169,500

17,269

 

22,345

TOTAL INFORMATION TECHNOLOGY

49,226

MATERIALS - 4.5%

Chemicals - 4.5%

Celanese Corp. Class A

3,465,630

108,093

UTILITIES - 0.1%

Independent Power Producers & Energy Traders - 0.1%

NRG Energy, Inc. (a)

167,000

3,647

TOTAL COMMON STOCKS

(Cost $286,900)

352,886

Convertible Preferred Stocks - 22.1%

 

 

 

 

CONSUMER DISCRETIONARY - 2.0%

Automobiles - 0.8%

Ford Motor Co. Capital Trust II 6.50% (a)

450,000

19,805

Convertible Preferred Stocks - continued

Shares

Value (000s)

CONSUMER DISCRETIONARY - continued

Leisure Equipment & Products - 0.5%

Callaway Golf Co. 7.50% (g)

100,000

$ 12,700

Media - 0.7%

Interpublic Group of Companies, Inc. 5.25%

10,000

7,539

LodgeNet Entertainment Corp. 10.00% (g)

4,997

8,964

 

16,503

TOTAL CONSUMER DISCRETIONARY

49,008

CONSUMER STAPLES - 2.1%

Food Products - 2.1%

Archer Daniels Midland Co. 6.25%

600,000

24,696

Bunge Ltd.:

4.875%

237,000

20,471

5.125%

10,000

5,944

 

51,111

ENERGY - 5.4%

Oil, Gas & Consumable Fuels - 5.4%

El Paso Corp.:

4.99% (g)

119,290

115,152

4.99%

10,000

9,653

Goodrich Petroleum Corp. 5.375%

100,000

3,729

 

128,534

FINANCIALS - 7.4%

Commercial Banks - 4.9%

Huntington Bancshares, Inc. 8.50%

2,100

1,863

Wells Fargo & Co. 7.50%

120,550

114,884

 

116,747

Diversified Financial Services - 2.2%

Bank of America Corp. Series L, 7.25%

47,085

42,730

Citigroup, Inc. 7.50%

85,400

9,160

 

51,890

Insurance - 0.3%

Assured Guaranty Ltd. 8.50%

100,000

8,672

TOTAL FINANCIALS

177,309

Convertible Preferred Stocks - continued

Shares

Value (000s)

HEALTH CARE - 1.6%

Health Care Providers & Services - 1.6%

Tenet Healthcare Corp. 7.00% (a)

40,000

$ 39,223

MATERIALS - 3.6%

Metals & Mining - 3.6%

Freeport-McMoRan Copper & Gold, Inc. 6.75%

803,200

86,183

TOTAL CONVERTIBLE PREFERRED STOCKS

(Cost $559,655)

531,368

Floating Rate Loans - 0.4%

 

Principal Amount (000s)

 

CONSUMER DISCRETIONARY - 0.0%

Media - 0.0%

Education Media and Publishing Group Ltd. Tranche 2LN, term loan 17.5% 12/12/14 (h)

$ 8,362

836

FINANCIALS - 0.4%

Diversified Financial Services - 0.4%

CCO Holdings, LLC Tranche 3LN, term loan 2.7556% 9/6/14 (h)

9,000

8,100

TOTAL FLOATING RATE LOANS

(Cost $14,946)

8,936

Money Market Funds - 6.6%

Shares

 

Fidelity Cash Central Fund, 0.16% (i)

132,593,352

132,593

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

25,751,925

25,752

TOTAL MONEY MARKET FUNDS

(Cost $158,345)

158,345

TOTAL INVESTMENT PORTFOLIO - 100.7%

(Cost $2,381,167)

2,415,925

NET OTHER ASSETS - (0.7)%

(17,652)

NET ASSETS - 100%

$ 2,398,273

Legend

(a) Non-income producing

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

(c) Non-income producing - Issuer is in default.

(d) 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.

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

(f) Affiliated company

(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 $572,307,000 or 23.9% of net assets.

(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. 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.

* Amount represents less than $1,000.

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
(Amounts in thousands)

Fidelity Cash Central Fund

$ 60

Fidelity Securities Lending Cash Central Fund

15

Total

$ 75

Other Affiliated Issuers

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

Affiliate
(Amounts in thousands)

Value
beginning of period

Purchases

Sales
Proceeds

Dividend
Income

Value
end of period

Ambassadors International, Inc.

-

$ 4,640

-

-

$ 922

Other Information

The following is a summary of the inputs used, as of February 28, 2010, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Investment Valuation section at the end of this listing.

Valuation Inputs at Reporting Date:

Description
(Amounts in thousands)

Total

Level 1

Level 2

Level 3

Investments in Securities:

Equities:

Consumer Discretionary

$ 80,758

$ 31,750

$ 49,008

$ -

Consumer Staples

51,111

-

51,111

-

Energy

136,310

7,776

128,534

-

Financials

329,703

319,168

10,535

-

Health Care

39,223

-

39,223

-

Information Technology

49,226

42,110

7,116

-

Materials

194,276

108,093

86,183

-

Utilities

3,647

3,647

-

-

Corporate Bonds

1,364,390

-

1,362,204

2,186

Floating Rate Loans

8,936

-

8,936

-

Money Market Funds

158,345

158,345

-

-

Total Investments in Securities:

$ 2,415,925

$ 670,889

$ 1,742,850

$ 2,186

The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:

Investments in Securities:

(Amounts in thousands)

Beginning Balance

$ 3,577

Total Realized Gain (Loss)

-

Total Unrealized Gain (Loss)

5,640

Cost of Purchases

-

Proceeds of Sales

-

Amortization/Accretion

719

Transfers in/out of Level 3

(7,750)

Ending Balance

$ 2,186

The change in unrealized gain (loss) for the period attributable to Level 3 securities held at February 28, 2010

$ -

The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period.

Income Tax Information

At February 28, 2010, the cost of investment securities for income tax purposes was $2,372,868,000. Net unrealized appreciation aggregated $43,057,000, of which $227,983,000 related to appreciated investment securities and $184,926,000 related to depreciated investment securities.

Investment Valuation

Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Security transactions are accounted for as of trade date. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value calculation under these procedures may differ from published prices for the same securities. The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels. Level 1 - quoted prices in active markets for identical investments. Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.). Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available). Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the Fund's investments by major category are as follows.

Debt securities, including restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For corporate bonds and floating rate loans, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.

Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy.

Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.

For additional information on the Fund's policy regarding valuation of investments and other significant accounting policies, please refer to the Fund's most recent semiannual or annual shareholder report.

Quarterly Report

The fund's schedule of investments as of the date on the cover of this report has not been audited. This report is provided for the general information of the fund's shareholders. For more information regarding the fund and its holdings, please see the fund's most recent prospectus and annual report.

Third party trademarks and service marks are the property of their respective owners. All other trademarks and service marks are the property of FMR LLC or an affiliate.

Quarterly Report

Quarterly Holdings Report

for

Fidelity® Advisor Convertible
Securities Fund
Class A
Class T
Class B
Class C
Institutional Class

February 28, 2010

Class A, Class T, Class B, Class C and
Institutional Class
are classes of Fidelity® Convertible
Securities Fund 

1.884072.101

ACVS-QTLY-0410

Investments February 28, 2010 (Unaudited)

Showing Percentage of Net Assets

Corporate Bonds - 56.9%

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - 55.7%

CONSUMER DISCRETIONARY - 3.6%

Auto Components - 0.1%

BorgWarner, Inc. 3.5% 4/15/12

$ 910

$ 1,181

Diversified Consumer Services - 0.6%

Ingersoll-Rand Global Holding Co. Ltd. 4.5% 4/15/12

490

910

Regis Corp. 5% 7/15/14

4,230

5,282

Stewart Enterprises, Inc. 3.375% 7/15/16 (g)

11,000

8,841

 

15,033

Hotels, Restaurants & Leisure - 0.8%

WMS Industries, Inc.:

2.75% 7/15/10 (g)

4,000

11,506

2.75% 7/15/10

2,800

8,054

 

19,560

Household Durables - 0.0%

Newell Rubbermaid, Inc. 5.5% 3/15/14

590

1,033

Media - 1.6%

Regal Entertainment Group 6.25% 3/15/11 (g)

19,297

19,683

Virgin Media, Inc. 6.5% 11/15/16 (g)

8,000

9,453

XM Satellite Radio, Inc. 7% 12/1/14 (g)

10,000

9,288

 

38,424

Specialty Retail - 0.5%

Asbury Automotive Group, Inc. 3% 9/15/12 (g)

3,000

2,678

Charming Shoppes, Inc. 1.125% 5/1/14

5,000

3,669

Sonic Automotive, Inc. 5% 10/1/29

1,180

1,239

United Auto Group, Inc. 3.5% 4/1/26

4,533

4,550

 

12,136

TOTAL CONSUMER DISCRETIONARY

87,367

CONSUMER STAPLES - 4.2%

Beverages - 0.6%

Molson Coors Brewing Co. 2.5% 7/30/13

14,000

14,893

Food & Staples Retailing - 2.0%

Nash-Finch Co. 1.6314% 3/15/35 (d)

24,480

11,307

Rite Aid Corp. 8.5% 5/15/15

24,100

24,311

The Pantry, Inc. 3% 11/15/12

14,000

12,521

 

48,139

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

CONSUMER STAPLES - continued

Food Products - 1.6%

Smithfield Foods, Inc. 4% 6/30/13

$ 22,250

$ 22,791

Tyson Foods, Inc. 3.25% 10/15/13

13,000

15,543

 

38,334

TOTAL CONSUMER STAPLES

101,366

ENERGY - 13.9%

Energy Equipment & Services - 2.5%

Exterran Holdings, Inc. 4.25% 6/15/14

10,000

11,930

Global Industries Ltd. 2.75% 8/1/27 (g)

10,000

6,238

Hercules Offshore, Inc. 3.375% 6/1/38 (g)

30,000

24,123

Hornbeck Offshore Services, Inc. 1.625% 11/15/26 (d)(g)

5,000

4,089

Oil States International, Inc. 2.375% 7/1/25 (g)

4,500

6,527

SESI LLC 1.5% 12/15/26 (d)(g)

7,000

6,432

 

59,339

Oil, Gas & Consumable Fuels - 11.4%

Alpha Natural Resources, Inc. 2.375% 4/15/15

35,000

39,260

Chesapeake Energy Corp. 2.5% 5/15/37

70,250

61,167

Goodrich Petroleum Corp. 3.25% 12/1/26

6,000

5,611

Massey Energy Co. 3.25% 8/1/15

10,000

9,015

Patriot Coal Corp. 3.25% 5/31/13 (g)

6,000

4,995

Peabody Energy Corp. 4.75% 12/15/66

117,250

120,169

Pioneer Natural Resources Co. 2.875% 1/15/38

10,000

10,588

Quicksilver Resources, Inc. 1.875% 11/1/24 (g)

14,500

16,937

Western Refining, Inc. 5.75% 6/15/14

7,810

5,711

 

273,453

TOTAL ENERGY

332,792

FINANCIALS - 1.2%

Diversified Financial Services - 1.2%

The NASDAQ Stock Market, Inc. 2.5% 8/15/13

30,000

28,425

HEALTH CARE - 5.2%

Health Care Equipment & Supplies - 3.4%

Beckman Coulter, Inc. 2.5% 12/15/36 (g)

8,500

9,574

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

HEALTH CARE - continued

Health Care Equipment & Supplies - continued

Inverness Medical Innovations, Inc.:

3% 5/15/16 (g)

$ 21,000

$ 22,785

3% 5/15/16

10,000

10,850

Kinetic Concepts, Inc. 3.25% 4/15/15 (g)

15,000

15,585

Medtronic, Inc. 1.625% 4/15/13

16,000

16,560

SonoSite, Inc. 3.75% 7/15/14

7,000

6,987

 

82,341

Health Care Providers & Services - 0.2%

Omnicare, Inc. 3.25% 12/15/35

7,000

5,600

Life Sciences Tools & Services - 0.2%

Charles River Laboratories International, Inc. 2.25% 6/15/13 (g)

4,000

4,000

Pharmaceuticals - 1.4%

Biovail Corp. 5.375% 8/1/14

10,000

11,925

Nektar Therapeutics 3.25% 9/28/12

9,000

8,494

Valeant Pharmaceuticals International 4% 11/15/13

10,000

12,800

 

33,219

TOTAL HEALTH CARE

125,160

INDUSTRIALS - 10.3%

Aerospace & Defense - 0.9%

Alliant Techsystems, Inc. 2.75% 9/15/11

14,000

14,263

GenCorp, Inc. 4.0625% 12/31/39 (g)

7,830

6,176

 

20,439

Airlines - 2.2%

AirTran Holdings, Inc. 7% 7/1/23

10,000

10,013

AMR Corp. 6.25% 10/15/14

1,990

2,306

Continental Airlines, Inc. 4.5% 1/15/15

9,280

11,322

U.S. Airways Group, Inc. 7.25% 5/15/14

1,200

2,168

UAL Corp.:

4.5% 6/30/21 (g)

10,500

9,791

4.5% 6/30/21

5,000

4,663

6% 10/15/29

3,600

7,629

US Airways Group, Inc. 7% 9/30/20 (g)

4,810

4,576

 

52,468

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

INDUSTRIALS - continued

Commercial Services & Supplies - 1.0%

Metalico, Inc. 7% 4/30/28

$ 32,500

$ 23,725

Construction & Engineering - 0.7%

MasTec, Inc. 4.25% 12/15/14 (g)

8,000

8,680

Quanta Services, Inc. 3.75% 4/30/26 (g)

7,000

7,341

 

16,021

Electrical Equipment - 1.6%

C&D Technologies, Inc.:

5.25% 11/1/25 (g)

4,400

2,635

5.25% 11/1/25

32,596

19,517

Evergreen Solar, Inc. 4% 7/15/13

4,000

1,860

General Cable Corp. 4.5% 11/15/29 (d)

14,800

13,249

SunPower Corp. 4.75% 4/15/14

2,020

1,990

 

39,251

Industrial Conglomerates - 0.1%

Textron, Inc. 4.5% 5/1/13

1,440

2,396

Machinery - 0.9%

Greenbrier Companies, Inc.:

2.375% 5/15/26 (g)

5,500

3,885

2.375% 5/15/26

8,000

5,650

Terex Corp. 4% 6/1/15

1,090

1,515

Trinity Industries, Inc. 3.875% 6/1/36

15,000

10,969

 

22,019

Marine - 1.3%

Excel Maritime Carriers Ltd. 1.875% 10/15/27 (g)

34,000

19,040

Horizon Lines, Inc. 4.25% 8/15/12 (g)

15,000

12,413

 

31,453

Road & Rail - 1.6%

Hertz Global Holdings, Inc. 5.25% 6/1/14

28,000

37,590

Trading Companies & Distributors - 0.0%

United Rentals, Inc. 4% 11/15/15

960

898

TOTAL INDUSTRIALS

246,260

INFORMATION TECHNOLOGY - 14.9%

Communications Equipment - 1.8%

CommScope, Inc. 3.25% 7/1/15

10,000

11,475

Finisar Corp. 5% 10/15/29 (g)

2,500

3,422

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

INFORMATION TECHNOLOGY - continued

Communications Equipment - continued

JDS Uniphase Corp. 1% 5/15/26 (g)

$ 14,000

$ 12,075

L-3 Communications Corp. 3% 8/1/35

3,000

3,131

Lucent Technologies, Inc. 2.875% 6/15/25

10,000

8,406

Symmetricom, Inc. 3.25% 6/15/25

5,214

5,136

 

43,645

Computers & Peripherals - 1.7%

EMC Corp. 1.75% 12/1/13 (g)

17,000

20,953

Hutchinson Technology, Inc. 3.25% 1/15/26

11,000

8,910

SanDisk Corp. 1% 5/15/13

13,000

10,707

 

40,570

Electronic Equipment & Components - 1.0%

Anixter International, Inc. 1% 2/15/13 (g)

4,540

4,112

Itron, Inc. 2.5% 8/1/26

5,000

5,891

Newport Corp. 2.5% 2/15/12 (g)

3,750

3,546

SYNNEX Corp. 4% 5/15/18 (g)

10,000

11,776

 

25,325

Internet Software & Services - 0.4%

VeriSign, Inc. 3.25% 8/15/37

10,000

8,815

IT Services - 1.3%

Alliance Data Systems Corp. 4.75% 5/15/14 (g)

10,200

13,821

BearingPoint, Inc. 3.1% 12/15/24 (c)(g)

8,000

0*

CACI International, Inc. 2.125% 5/1/14

6,000

6,330

DST Systems, Inc. 4.125% 8/15/23

10,100

10,088

 

30,239

Semiconductors & Semiconductor Equipment - 8.3%

Advanced Micro Devices, Inc. 6% 5/1/15

25,000

23,033

Amkor Technology, Inc. 6% 4/15/14 (g)

10,890

23,727

Conexant Systems, Inc. 4% 3/1/26

7,000

6,703

Intel Corp. 3.25% 8/1/39 (g)

58,000

65,108

LTX-Credence Corp. 3.5% 5/15/11

10,333

7,750

Micron Technology, Inc. 4.25% 10/15/13

6,130

11,770

ON Semiconductor Corp.:

1.875% 12/15/25 (g)

3,750

4,784

2.625% 12/15/26

35,330

35,948

PMC-Sierra, Inc. 2.25% 10/15/25

10,000

11,638

Xilinx, Inc. 3.125% 3/15/37

10,000

9,325

 

199,786

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

INFORMATION TECHNOLOGY - continued

Software - 0.4%

Nuance Communications, Inc. 2.75% 8/15/27

$ 9,085

$ 9,239

TOTAL INFORMATION TECHNOLOGY

357,619

MATERIALS - 0.7%

Metals & Mining - 0.7%

ArcelorMittal SA 5% 5/15/14

2,170

3,167

Goldcorp, Inc. 2% 8/1/14 (g)

5,000

5,594

Newmont Mining Corp. 1.625% 7/15/17

5,000

6,387

Steel Dynamics, Inc. 5.125% 6/15/14

860

1,046

 

16,194

TELECOMMUNICATION SERVICES - 1.7%

Diversified Telecommunication Services - 0.8%

Level 3 Communications, Inc. 7% 3/15/15

10,000

11,838

Time Warner Telecom, Inc. 2.375% 4/1/26

6,000

6,315

 

18,153

Wireless Telecommunication Services - 0.9%

Leap Wireless International, Inc. 4.5% 7/15/14

26,000

22,394

TOTAL TELECOMMUNICATION SERVICES

40,547

TOTAL CONVERTIBLE BONDS

1,335,730

Nonconvertible Bonds - 1.2%

CONSUMER DISCRETIONARY - 0.1%

Hotels, Restaurants & Leisure - 0.1%

Ambassadors International, Inc. 10% 1/15/12
pay-in-kind (g)

2,186

2,186

FINANCIALS - 0.3%

Consumer Finance - 0.3%

GMAC LLC:

7.5% 12/31/13

4,264

4,179

8% 12/31/18

3,812

3,526

 

7,705

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Nonconvertible Bonds - continued

INFORMATION TECHNOLOGY - 0.8%

Semiconductors & Semiconductor Equipment - 0.8%

Freescale Semiconductor, Inc. 9.875% 12/15/14
pay-in-kind (h)

$ 22,024

$ 18,769

TOTAL NONCONVERTIBLE BONDS

28,660

TOTAL CORPORATE BONDS

(Cost $1,361,321)

1,364,390

Common Stocks - 14.7%

Shares

 

CONSUMER DISCRETIONARY - 1.3%

Auto Components - 0.4%

Johnson Controls, Inc.

344,134

10,703

Diversified Consumer Services - 0.4%

Service Corp. International

1,143,000

9,213

Hotels, Restaurants & Leisure - 0.5%

Ambassadors International, Inc. (a)(f)

1,843,012

922

Domino's Pizza, Inc. (a)

130,400

1,629

Las Vegas Sands Corp. (a)(e)

558,200

9,283

 

11,834

TOTAL CONSUMER DISCRETIONARY

31,750

ENERGY - 0.3%

Oil, Gas & Consumable Fuels - 0.3%

McMoRan Exploration Co. (a)(e)

450,000

7,776

FINANCIALS - 6.4%

Commercial Banks - 2.7%

Huntington Bancshares, Inc.

5,820,500

27,997

KeyCorp

5,214,100

37,281

 

65,278

Common Stocks - continued

Shares

Value (000s)

FINANCIALS - continued

Diversified Financial Services - 3.6%

Bank of America Corp.

5,181,985

$ 86,332

Thrifts & Mortgage Finance - 0.1%

Washington Mutual, Inc. (a)

2,959,042

784

TOTAL FINANCIALS

152,394

INFORMATION TECHNOLOGY - 2.1%

Communications Equipment - 0.6%

EMCORE Corp. (a)(e)

172,258

203

Finisar Corp. (a)(e)

1,174,120

14,712

 

14,915

Electronic Equipment & Components - 0.5%

L-1 Identity Solutions, Inc. (a)

100,000

852

Viasystems Group, Inc. (a)

183,215

3,998

Viasystems Group, Inc. (a)(g)

183,214

3,598

Viasystems Group, Inc. (a)(g)

183,214

3,518

 

11,966

Semiconductors & Semiconductor Equipment - 1.0%

Amkor Technology, Inc. (a)

843,200

5,076

ON Semiconductor Corp. (a)

2,169,500

17,269

 

22,345

TOTAL INFORMATION TECHNOLOGY

49,226

MATERIALS - 4.5%

Chemicals - 4.5%

Celanese Corp. Class A

3,465,630

108,093

UTILITIES - 0.1%

Independent Power Producers & Energy Traders - 0.1%

NRG Energy, Inc. (a)

167,000

3,647

TOTAL COMMON STOCKS

(Cost $286,900)

352,886

Convertible Preferred Stocks - 22.1%

 

 

 

 

CONSUMER DISCRETIONARY - 2.0%

Automobiles - 0.8%

Ford Motor Co. Capital Trust II 6.50% (a)

450,000

19,805

Convertible Preferred Stocks - continued

Shares

Value (000s)

CONSUMER DISCRETIONARY - continued

Leisure Equipment & Products - 0.5%

Callaway Golf Co. 7.50% (g)

100,000

$ 12,700

Media - 0.7%

Interpublic Group of Companies, Inc. 5.25%

10,000

7,539

LodgeNet Entertainment Corp. 10.00% (g)

4,997

8,964

 

16,503

TOTAL CONSUMER DISCRETIONARY

49,008

CONSUMER STAPLES - 2.1%

Food Products - 2.1%

Archer Daniels Midland Co. 6.25%

600,000

24,696

Bunge Ltd.:

4.875%

237,000

20,471

5.125%

10,000

5,944

 

51,111

ENERGY - 5.4%

Oil, Gas & Consumable Fuels - 5.4%

El Paso Corp.:

4.99% (g)

119,290

115,152

4.99%

10,000

9,653

Goodrich Petroleum Corp. 5.375%

100,000

3,729

 

128,534

FINANCIALS - 7.4%

Commercial Banks - 4.9%

Huntington Bancshares, Inc. 8.50%

2,100

1,863

Wells Fargo & Co. 7.50%

120,550

114,884

 

116,747

Diversified Financial Services - 2.2%

Bank of America Corp. Series L, 7.25%

47,085

42,730

Citigroup, Inc. 7.50%

85,400

9,160

 

51,890

Insurance - 0.3%

Assured Guaranty Ltd. 8.50%

100,000

8,672

TOTAL FINANCIALS

177,309

Convertible Preferred Stocks - continued

Shares

Value (000s)

HEALTH CARE - 1.6%

Health Care Providers & Services - 1.6%

Tenet Healthcare Corp. 7.00% (a)

40,000

$ 39,223

MATERIALS - 3.6%

Metals & Mining - 3.6%

Freeport-McMoRan Copper & Gold, Inc. 6.75%

803,200

86,183

TOTAL CONVERTIBLE PREFERRED STOCKS

(Cost $559,655)

531,368

Floating Rate Loans - 0.4%

 

Principal Amount (000s)

 

CONSUMER DISCRETIONARY - 0.0%

Media - 0.0%

Education Media and Publishing Group Ltd. Tranche 2LN, term loan 17.5% 12/12/14 (h)

$ 8,362

836

FINANCIALS - 0.4%

Diversified Financial Services - 0.4%

CCO Holdings, LLC Tranche 3LN, term loan 2.7556% 9/6/14 (h)

9,000

8,100

TOTAL FLOATING RATE LOANS

(Cost $14,946)

8,936

Money Market Funds - 6.6%

Shares

 

Fidelity Cash Central Fund, 0.16% (i)

132,593,352

132,593

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

25,751,925

25,752

TOTAL MONEY MARKET FUNDS

(Cost $158,345)

158,345

TOTAL INVESTMENT PORTFOLIO - 100.7%

(Cost $2,381,167)

2,415,925

NET OTHER ASSETS - (0.7)%

(17,652)

NET ASSETS - 100%

$ 2,398,273

Legend

(a) Non-income producing

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

(c) Non-income producing - Issuer is in default.

(d) 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.

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

(f) Affiliated company

(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 $572,307,000 or 23.9% of net assets.

(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. 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.

* Amount represents less than $1,000.

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
(Amounts in thousands)

Fidelity Cash Central Fund

$ 60

Fidelity Securities Lending Cash Central Fund

15

Total

$ 75

Other Affiliated Issuers

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

Affiliate
(Amounts in thousands)

Value
beginning of period

Purchases

Sales
Proceeds

Dividend
Income

Value
end of period

Ambassadors International, Inc.

-

$ 4,640

-

-

$ 922

Other Information

The following is a summary of the inputs used, as of February 28, 2010, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Investment Valuation section at the end of this listing.

Valuation Inputs at Reporting Date:

Description
(Amounts in thousands)

Total

Level 1

Level 2

Level 3

Investments in Securities:

Equities:

Consumer Discretionary

$ 80,758

$ 31,750

$ 49,008

$ -

Consumer Staples

51,111

-

51,111

-

Energy

136,310

7,776

128,534

-

Financials

329,703

319,168

10,535

-

Health Care

39,223

-

39,223

-

Information Technology

49,226

42,110

7,116

-

Materials

194,276

108,093

86,183

-

Utilities

3,647

3,647

-

-

Corporate Bonds

1,364,390

-

1,362,204

2,186

Floating Rate Loans

8,936

-

8,936

-

Money Market Funds

158,345

158,345

-

-

Total Investments in Securities:

$ 2,415,925

$ 670,889

$ 1,742,850

$ 2,186

The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:

Investments in Securities:

(Amounts in thousands)

Beginning Balance

$ 3,577

Total Realized Gain (Loss)

-

Total Unrealized Gain (Loss)

5,640

Cost of Purchases

-

Proceeds of Sales

-

Amortization/Accretion

719

Transfers in/out of Level 3

(7,750)

Ending Balance

$ 2,186

The change in unrealized gain (loss) for the period attributable to Level 3 securities held at February 28, 2010

$ -

The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period.

Income Tax Information

At February 28, 2010, the cost of investment securities for income tax purposes was $2,372,868,000. Net unrealized appreciation aggregated $43,057,000, of which $227,983,000 related to appreciated investment securities and $184,926,000 related to depreciated investment securities.

Investment Valuation

Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Security transactions are accounted for as of trade date. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value calculation under these procedures may differ from published prices for the same securities. The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels. Level 1 - quoted prices in active markets for identical investments. Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.). Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available). Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the Fund's investments by major category are as follows.

Debt securities, including restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For corporate bonds and floating rate loans, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.

Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy.

Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.

For additional information on the Fund's policy regarding valuation of investments and other significant accounting policies, please refer to the Fund's most recent semiannual or annual shareholder report.

Quarterly Report

The fund's schedule of investments as of the date on the cover of this report has not been audited. This report is provided for the general information of the fund's shareholders. For more information regarding the fund and its holdings, please visit advisor.fidelity.com or call Fidelity at 1-877-208-0098 for a free copy of the fund's most recent prospectus and annual report.

Third party trademarks and service marks are the property of their respective owners. All other trademarks and service marks are the property of FMR LLC or an affiliate.

Quarterly Report

Quarterly Holdings Report

for

Fidelity® Equity-Income II Fund
Equity-Income II
Class K

February 28, 2010 

1.797940.106

EII-QTLY-0410

Investments February 28, 2010 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 97.7%

Shares

Value (000s)

CONSUMER DISCRETIONARY - 15.3%

Auto Components - 1.6%

ArvinMeritor, Inc. (a)

116,400

$ 1,357

Johnson Controls, Inc.

1,603,292

49,862

Michelin CGDE Series B

126,853

8,848

The Goodyear Tire & Rubber Co. (a)

2,043,400

26,544

 

86,611

Automobiles - 1.1%

Bayerische Motoren Werke AG (BMW)

118,252

4,795

Daimler AG (Reg.)

173,140

7,239

Fiat SpA

943,300

9,928

Harley-Davidson, Inc. (c)

1,260,758

31,027

Thor Industries, Inc.

141,200

4,791

 

57,780

Diversified Consumer Services - 0.6%

H&R Block, Inc.

1,732,100

29,931

Hotels, Restaurants & Leisure - 0.6%

Sands China Ltd.

4,090,800

5,797

Starbucks Corp. (a)

1,134,800

25,998

 

31,795

Household Durables - 3.4%

Black & Decker Corp.

314,029

22,758

KB Home

276,700

4,505

Lennar Corp. Class A

562,700

9,234

Newell Rubbermaid, Inc.

1,731,800

23,812

Toll Brothers, Inc. (a)

4,402,250

82,894

Whirlpool Corp.

437,388

36,811

 

180,014

Internet & Catalog Retail - 0.2%

Liberty Media Corp. Interactive Series A (a)

966,236

12,165

Media - 2.9%

Belo Corp. Series A

912,073

6,138

Comcast Corp. Class A

2,173,300

35,729

Informa PLC

1,805,725

9,239

Interpublic Group of Companies, Inc. (a)

1,273,300

9,550

The Walt Disney Co.

1,254,625

39,194

Time Warner, Inc.

1,449,817

42,103

Virgin Media, Inc.

432,802

7,011

Vivendi

249,417

6,282

 

155,246

Common Stocks - continued

Shares

Value (000s)

CONSUMER DISCRETIONARY - continued

Multiline Retail - 2.0%

Kohl's Corp. (a)

585,512

$ 31,512

Macy's, Inc.

1,357,619

25,998

Target Corp.

884,700

45,580

Tuesday Morning Corp. (a)

468,400

2,675

 

105,765

Specialty Retail - 2.9%

Home Depot, Inc.

2,486,200

77,569

Lowe's Companies, Inc.

992,700

23,537

OfficeMax, Inc. (a)

400,800

6,401

RadioShack Corp.

594,100

11,621

Staples, Inc.

1,463,500

37,700

 

156,828

TOTAL CONSUMER DISCRETIONARY

816,135

CONSUMER STAPLES - 5.0%

Beverages - 1.1%

Carlsberg AS Series B

264,888

20,455

The Coca-Cola Co.

664,300

35,022

 

55,477

Food & Staples Retailing - 1.1%

CVS Caremark Corp.

586,400

19,791

Kroger Co.

994,200

21,972

Walgreen Co.

350,300

12,345

Winn-Dixie Stores, Inc. (a)

547,110

5,985

 

60,093

Food Products - 1.1%

Bunge Ltd.

207,500

12,365

Nestle SA (Reg.)

626,851

31,185

Tyson Foods, Inc. Class A

1,009,769

17,206

 

60,756

Household Products - 0.7%

Procter & Gamble Co.

577,400

36,538

Personal Products - 0.1%

Avon Products, Inc.

232,290

7,071

Tobacco - 0.9%

Philip Morris International, Inc.

940,359

46,059

TOTAL CONSUMER STAPLES

265,994

Common Stocks - continued

Shares

Value (000s)

ENERGY - 14.9%

Energy Equipment & Services - 2.9%

Baker Hughes, Inc.

319,000

$ 15,286

BJ Services Co.

633,104

13,833

Halliburton Co.

704,200

21,232

Nabors Industries Ltd. (a)

910,300

20,063

Noble Corp.

910,300

38,469

Pride International, Inc. (a)

401,529

11,235

Schlumberger Ltd.

578,176

35,327

 

155,445

Oil, Gas & Consumable Fuels - 12.0%

Anadarko Petroleum Corp.

547,098

38,368

Apache Corp.

362,800

37,601

Chevron Corp.

2,030,000

146,769

Cloud Peak Energy, Inc.

174,700

2,657

ConocoPhillips

1,337,600

64,205

CONSOL Energy, Inc.

404,300

20,361

Devon Energy Corp.

204,786

14,102

EOG Resources, Inc.

371,686

34,957

Exxon Mobil Corp.

1,667,300

108,375

Marathon Oil Corp.

696,545

20,165

Occidental Petroleum Corp.

604,995

48,309

Reliance Industries Ltd.

452,840

9,615

Royal Dutch Shell PLC:

Class A sponsored ADR

1,481,400

81,092

Class B ADR

235,100

12,371

 

638,947

TOTAL ENERGY

794,392

FINANCIALS - 27.0%

Capital Markets - 5.0%

Bank of New York Mellon Corp.

1,413,710

40,319

Credit Suisse Group sponsored ADR (c)

307,000

13,692

Goldman Sachs Group, Inc.

404,800

63,290

Morgan Stanley

2,615,292

73,699

Nomura Holdings, Inc.

662,600

4,880

State Street Corp.

843,500

37,882

T. Rowe Price Group, Inc.

189,185

9,590

Common Stocks - continued

Shares

Value (000s)

FINANCIALS - continued

Capital Markets - continued

UBS AG:

(For. Reg.) (a)

621,000

$ 8,594

(NY Shares) (a)

1,091,300

15,125

 

267,071

Commercial Banks - 8.6%

Associated Banc-Corp.

1,647,755

21,273

BB&T Corp.

236,100

6,736

Comerica, Inc.

555,200

20,032

Huntington Bancshares, Inc.

1,520,800

7,315

KeyCorp

3,049,074

21,801

Marshall & Ilsley Corp.

788,400

5,582

Mitsubishi UFJ Financial Group, Inc. sponsored ADR

3,711,800

19,004

PNC Financial Services Group, Inc.

2,070,900

111,332

Standard Chartered PLC (United Kingdom)

531,398

12,659

Sumitomo Mitsui Financial Group, Inc.

107,700

3,463

SunTrust Banks, Inc.

218,500

5,202

U.S. Bancorp, Delaware

1,469,100

36,155

Wells Fargo & Co.

6,842,600

187,077

 

457,631

Consumer Finance - 1.4%

American Express Co.

626,670

23,933

Capital One Financial Corp.

646,333

24,399

Discover Financial Services

1,367,000

18,660

SLM Corp. (a)

867,281

9,696

 

76,688

Diversified Financial Services - 8.8%

Bank of America Corp.

11,995,273

199,841

Citigroup, Inc.

8,273,183

28,129

CME Group, Inc.

15,088

4,552

JPMorgan Chase & Co.

5,150,000

216,140

Moody's Corp. (c)

764,640

20,355

 

469,017

Insurance - 1.9%

ACE Ltd.

428,620

21,427

Allstate Corp.

194,600

6,081

Berkshire Hathaway, Inc. Class B (a)(c)

107,800

8,638

Hartford Financial Services Group, Inc.

600,700

14,639

Montpelier Re Holdings Ltd.

1,205,300

21,382

Common Stocks - continued

Shares

Value (000s)

FINANCIALS - continued

Insurance - continued

The First American Corp.

270,575

$ 8,721

The Travelers Companies, Inc.

386,552

20,329

 

101,217

Real Estate Investment Trusts - 0.8%

Developers Diversified Realty Corp.

1,253,417

13,299

HCP, Inc.

811,100

23,343

Segro PLC

1,191,112

5,789

 

42,431

Real Estate Management & Development - 0.5%

Allgreen Properties Ltd.

2,732,000

2,177

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

1,043,300

13,772

Indiabulls Real Estate Ltd. (a)

2,558,497

8,890

Unite Group PLC (a)

583,497

2,586

 

27,425

TOTAL FINANCIALS

1,441,480

HEALTH CARE - 7.4%

Biotechnology - 0.9%

Amgen, Inc. (a)

554,600

31,396

Biogen Idec, Inc. (a)

220,870

12,150

Cephalon, Inc. (a)

84,300

5,789

 

49,335

Health Care Equipment & Supplies - 0.7%

Boston Scientific Corp. (a)

1,114,605

8,627

C. R. Bard, Inc.

115,905

9,711

CareFusion Corp. (a)

405,343

10,231

Covidien PLC

121,627

5,974

 

34,543

Health Care Providers & Services - 0.5%

UnitedHealth Group, Inc.

724,100

24,518

Pharmaceuticals - 5.3%

Johnson & Johnson

756,700

47,672

Merck & Co., Inc.

2,540,628

93,698

Common Stocks - continued

Shares

Value (000s)

HEALTH CARE - continued

Pharmaceuticals - continued

Pfizer, Inc.

7,164,335

$ 125,734

Sanofi-Aventis

230,781

16,841

 

283,945

TOTAL HEALTH CARE

392,341

INDUSTRIALS - 10.1%

Aerospace & Defense - 2.9%

Honeywell International, Inc.

1,080,800

43,405

Lockheed Martin Corp.

81,800

6,361

Orbital Sciences Corp. (a)

232,422

4,288

Raytheon Co.

143,300

8,059

Spirit AeroSystems Holdings, Inc. Class A (a)

756,800

14,470

The Boeing Co.

481,717

30,425

United Technologies Corp.

746,428

51,242

 

158,250

Building Products - 0.3%

Armstrong World Industries, Inc. (a)

62,933

2,317

Masco Corp.

1,273,300

17,024

 

19,341

Construction & Engineering - 0.2%

Fluor Corp.

226,900

9,711

Electrical Equipment - 0.3%

Cooper Industries PLC Class A

145,794

6,613

Schneider Electric SA

79,061

8,442

 

15,055

Industrial Conglomerates - 3.3%

General Electric Co.

4,184,100

67,197

Koninklijke Philips Electronics NV (NY Shares)

221,352

6,486

Rheinmetall AG

335,942

21,035

Siemens AG sponsored ADR (c)

461,500

39,809

Textron, Inc.

922,100

18,368

Tyco International Ltd.

605,400

21,831

 

174,726

Machinery - 2.4%

Briggs & Stratton Corp.

830,626

14,544

Caterpillar, Inc.

95,700

5,460

Cummins, Inc.

412,900

23,444

Eaton Corp.

367,700

25,048

Common Stocks - continued

Shares

Value (000s)

INDUSTRIALS - continued

Machinery - continued

Ingersoll-Rand Co. Ltd.

585,553

$ 18,685

Kennametal, Inc.

532,200

13,864

The Stanley Works

279,800

16,019

Vallourec SA

55,600

10,624

 

127,688

Road & Rail - 0.7%

CSX Corp.

380,500

18,059

Union Pacific Corp.

265,200

17,867

 

35,926

TOTAL INDUSTRIALS

540,697

INFORMATION TECHNOLOGY - 7.2%

Communications Equipment - 0.9%

Cisco Systems, Inc. (a)

1,406,266

34,214

Motorola, Inc. (a)

1,920,192

12,980

 

47,194

Computers & Peripherals - 1.2%

Hewlett-Packard Co.

947,975

48,148

International Business Machines Corp.

127,200

16,175

 

64,323

Electronic Equipment & Components - 1.3%

Agilent Technologies, Inc. (a)

680,784

21,417

Arrow Electronics, Inc. (a)

237,538

6,701

Avnet, Inc. (a)

475,100

13,118

Tyco Electronics Ltd.

1,098,471

28,154

 

69,390

IT Services - 0.1%

Hewitt Associates, Inc. Class A (a)

233,844

8,884

MoneyGram International, Inc. (a)

340,342

943

 

9,827

Office Electronics - 0.2%

Xerox Corp.

1,089,380

10,207

Semiconductors & Semiconductor Equipment - 3.0%

Applied Materials, Inc.

2,865,600

35,075

Intel Corp.

3,132,100

64,302

Micron Technology, Inc. (a)

1,472,300

13,339

National Semiconductor Corp.

1,614,802

23,382

Novellus Systems, Inc. (a)

182,200

4,030

Common Stocks - continued

Shares

Value (000s)

INFORMATION TECHNOLOGY - continued

Semiconductors & Semiconductor Equipment - continued

Samsung Electronics Co. Ltd.

10,133

$ 6,499

Teradyne, Inc. (a)

303,600

3,033

Varian Semiconductor Equipment Associates, Inc. (a)

331,900

9,984

 

159,644

Software - 0.5%

Microsoft Corp.

605,854

17,364

Oracle Corp.

343,986

8,479

 

25,843

TOTAL INFORMATION TECHNOLOGY

386,428

MATERIALS - 1.9%

Chemicals - 1.0%

Clariant AG (Reg.) (a)

570,786

6,184

Dow Chemical Co.

414,932

11,747

E.I. du Pont de Nemours & Co.

757,109

25,530

Monsanto Co.

132,800

9,382

 

52,843

Metals & Mining - 0.7%

Alcoa, Inc.

1,207,232

16,056

Commercial Metals Co.

303,509

4,978

Nucor Corp.

396,900

16,432

 

37,466

Paper & Forest Products - 0.2%

Weyerhaeuser Co.

270,650

10,934

TOTAL MATERIALS

101,243

TELECOMMUNICATION SERVICES - 5.5%

Diversified Telecommunication Services - 4.8%

AT&T, Inc.

5,074,000

125,886

Qwest Communications International, Inc.

7,720,600

35,206

Verizon Communications, Inc.

3,235,400

93,600

 

254,692

Common Stocks - continued

Shares

Value (000s)

TELECOMMUNICATION SERVICES - continued

Wireless Telecommunication Services - 0.7%

Sprint Nextel Corp. (a)

6,520,347

$ 21,713

Vodafone Group PLC sponsored ADR

646,800

14,081

 

35,794

TOTAL TELECOMMUNICATION SERVICES

290,486

UTILITIES - 3.4%

Electric Utilities - 2.5%

Allegheny Energy, Inc.

1,216,497

27,554

American Electric Power Co., Inc.

1,260,409

42,375

Entergy Corp.

370,300

28,132

FirstEnergy Corp.

904,274

34,950

 

133,011

Independent Power Producers & Energy Traders - 0.8%

AES Corp.

2,250,400

26,307

Constellation Energy Group, Inc.

365,400

12,815

 

39,122

Multi-Utilities - 0.1%

CMS Energy Corp.

467,200

7,134

TOTAL UTILITIES

179,267

TOTAL COMMON STOCKS

(Cost $4,612,382)

5,208,463

Preferred Stocks - 1.0%

 

 

 

 

Convertible Preferred Stocks - 0.9%

FINANCIALS - 0.5%

Commercial Banks - 0.1%

Huntington Bancshares, Inc. 8.50%

7,600

6,741

Diversified Financial Services - 0.2%

Citigroup, Inc. 7.50%

81,000

8,688

Insurance - 0.2%

XL Capital Ltd. 10.75%

462,200

12,794

TOTAL FINANCIALS

28,223

Preferred Stocks - continued

Shares

Value (000s)

Convertible Preferred Stocks - continued

MATERIALS - 0.4%

Metals & Mining - 0.4%

Freeport-McMoRan Copper & Gold, Inc. 6.75%

190,100

$ 20,398

TOTAL CONVERTIBLE PREFERRED STOCKS

48,621

Nonconvertible Preferred Stocks - 0.1%

FINANCIALS - 0.1%

Insurance - 0.1%

Fondiaria-Sai SpA (Risparmio Shares)

513,733

5,221

TOTAL PREFERRED STOCKS

(Cost $38,443)

53,842

Convertible Bonds - 0.8%

 

Principal Amount (000s)

 

CONSUMER DISCRETIONARY - 0.4%

Automobiles - 0.3%

Ford Motor Co. 4.25% 11/15/16

$ 9,710

13,781

Leisure Equipment & Products - 0.0%

Eastman Kodak Co. 7% 4/1/17 (d)

1,890

2,073

Media - 0.1%

Liberty Global, Inc. 4.5% 11/15/16 (d)

3,190

3,868

TOTAL CONSUMER DISCRETIONARY

19,722

INDUSTRIALS - 0.2%

Airlines - 0.1%

AMR Corp. 6.25% 10/15/14

1,800

2,086

UAL Corp. 6% 10/15/29

2,270

4,811

 

6,897

Industrial Conglomerates - 0.1%

Textron, Inc. 4.5% 5/1/13

1,840

3,062

TOTAL INDUSTRIALS

9,959

INFORMATION TECHNOLOGY - 0.1%

Semiconductors & Semiconductor Equipment - 0.1%

Micron Technology, Inc. 1.875% 6/1/14

5,220

4,691

Convertible Bonds - continued

 

Principal Amount (000s)

Value (000s)

MATERIALS - 0.1%

Metals & Mining - 0.1%

United States Steel Corp. 4% 5/15/14

$ 4,290

$ 7,781

TOTAL CONVERTIBLE BONDS

(Cost $29,087)

42,153

Money Market Funds - 0.8%

Shares

 

Fidelity Cash Central Fund, 0.16% (e)

15,413,194

15,413

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

27,824,860

27,825

TOTAL MONEY MARKET FUNDS

(Cost $43,238)

43,238

TOTAL INVESTMENT PORTFOLIO - 100.3%

(Cost $4,723,150)

5,347,696

NET OTHER ASSETS - (0.3)%

(16,500)

NET ASSETS - 100%

$ 5,331,196

Legend

(a) Non-income producing

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

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

(d) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $5,941,000 or 0.1% of net assets.

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

Affiliated Central Funds

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

Fund

Income earned
(Amounts in thousands)

Fidelity Cash Central Fund

$ 9

Fidelity Securities Lending Cash Central Fund

142

Total

$ 151

Other Information

The following is a summary of the inputs used, as of February 28, 2010, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section at the end of this listing.

Valuation Inputs at Reporting Date:

Description
(Amounts in thousands)

Total

Level 1

Level 2

Level 3

Investments in Securities:

Equities:

Consumer Discretionary

$ 816,135

$ 808,896

$ 7,239

$ -

Consumer Staples

265,994

265,994

-

-

Energy

794,392

794,392

-

-

Financials

1,474,924

1,454,709

20,215

-

Health Care

392,341

375,500

16,841

-

Industrials

540,697

540,697

-

-

Information Technology

386,428

386,428

-

-

Materials

121,641

101,243

20,398

-

Telecommunication Services

290,486

290,486

-

-

Utilities

179,267

179,267

-

-

Corporate Bonds

42,153

-

42,153

-

Money Market Funds

43,238

43,238

-

-

Total Investments in Securities:

$ 5,347,696

$ 5,240,850

$ 106,846

$ -

Income Tax Information

At February 28, 2010, the cost of investment securities for income tax purposes was $4,861,173,000. Net unrealized appreciation aggregated $486,523,000, of which $961,777,000 related to appreciated investment securities and $475,254,000 related to depreciated investment securities.

Investment Valuation

Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Security transactions are accounted for as of trade date. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value calculation under these procedures may differ from published prices for the same securities. The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels. Level 1 - quoted prices in active markets for identical investments. Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds etc.). Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available). Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the Fund's investments by major category are as follows.

Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts, futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.

Debt securities, including restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy.

Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.

When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.

For additional information on the Fund's policy regarding valuation of investments and other significant accounting policies, please refer to the Fund's most recent semiannual or annual shareholder report.

Quarterly Report

The fund's schedule of investments as of the date on the cover of this report has not been audited. This report is provided for the general information of the fund's shareholders. For more information regarding the fund and its holdings, please see the fund's most recent prospectus and annual report.

Third party trademarks and service marks are the property of their respective owners. All other trademarks and service marks are the property of FMR LLC or an affiliate.

Quarterly Report

Quarterly Holdings Report

for

Fidelity® Independence Fund
Independence
Class K

February 28, 2010 

1.797942.106

FRE-QTLY-0410

Investments February 28, 2010 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 99.2%

Shares

Value (000s)

CONSUMER DISCRETIONARY - 9.5%

Auto Components - 0.3%

The Goodyear Tire & Rubber Co. (a)

963,800

$ 12,520

Hotels, Restaurants & Leisure - 1.8%

Ctrip.com International Ltd. sponsored ADR (a)

1,915,800

73,241

Household Durables - 1.3%

Cyrela Brazil Realty SA

1,463,800

18,152

Gafisa SA sponsored ADR (c)

1,092,000

33,535

 

51,687

Internet & Catalog Retail - 2.9%

Amazon.com, Inc. (a)

724,800

85,816

Priceline.com, Inc. (a)

122,000

27,665

 

113,481

Media - 0.1%

VisionChina Media, Inc. ADR (a)

400,000

3,080

Multiline Retail - 1.6%

Macy's, Inc.

500,000

9,575

Nordstrom, Inc. (c)

585,500

21,628

Target Corp.

589,600

30,376

 

61,579

Specialty Retail - 0.8%

Williams-Sonoma, Inc.

1,551,900

33,304

Textiles, Apparel & Luxury Goods - 0.7%

Deckers Outdoor Corp. (a)

200,000

24,040

Fuqi International, Inc. (a)(c)

172,200

3,177

 

27,217

TOTAL CONSUMER DISCRETIONARY

376,109

CONSUMER STAPLES - 1.7%

Personal Products - 1.7%

Estee Lauder Companies, Inc. Class A

780,700

46,943

Hengan International Group Co. Ltd.

2,781,000

19,114

 

66,057

ENERGY - 6.1%

Energy Equipment & Services - 2.5%

Dril-Quip, Inc. (a)

278,300

15,229

Seadrill Ltd. (c)

1,659,000

38,149

Common Stocks - continued

Shares

Value (000s)

ENERGY - continued

Energy Equipment & Services - continued

Seahawk Drilling, Inc. (a)

170,000

$ 3,494

Transocean Ltd. (a)

513,400

40,980

 

97,852

Oil, Gas & Consumable Fuels - 3.6%

Concho Resources, Inc. (a)

766,300

35,595

EXCO Resources, Inc.

500,000

9,455

Occidental Petroleum Corp.

769,900

61,477

Southwestern Energy Co. (a)

854,900

36,376

 

142,903

TOTAL ENERGY

240,755

FINANCIALS - 21.4%

Capital Markets - 1.3%

Morgan Stanley

1,096,600

30,902

The Blackstone Group LP

1,366,200

19,099

 

50,001

Commercial Banks - 6.6%

China Merchants Bank Co. Ltd. (H Shares)

5,725,000

14,102

Comerica, Inc.

350,000

12,628

Itau Unibanco Banco Multiplo SA ADR

1,317,400

26,295

PNC Financial Services Group, Inc.

1,471,500

79,108

Wells Fargo & Co.

4,729,300

129,299

 

261,432

Consumer Finance - 1.7%

American Express Co.

1,810,200

69,132

Diversified Financial Services - 8.1%

Apollo Global Management LLC (a)(d)

1,703,400

10,220

Bank of America Corp.

7,158,381

119,259

CME Group, Inc.

99,500

30,018

Hong Kong Exchanges and Clearing Ltd.

954,400

15,972

IntercontinentalExchange, Inc. (a)

93,600

10,042

JPMorgan Chase & Co.

3,233,400

135,706

 

321,217

Insurance - 3.6%

Assured Guaranty Ltd.

692,800

14,618

Hartford Financial Services Group, Inc.

2,196,100

53,519

Common Stocks - continued

Shares

Value (000s)

FINANCIALS - continued

Insurance - continued

Lincoln National Corp.

1,358,900

$ 34,217

XL Capital Ltd. Class A

2,194,800

40,099

 

142,453

Real Estate Management & Development - 0.1%

Indiabulls Real Estate Ltd. (a)

1,000,000

3,475

TOTAL FINANCIALS

847,710

HEALTH CARE - 11.9%

Biotechnology - 2.1%

Biogen Idec, Inc. (a)

150,000

8,252

Dendreon Corp. (a)

400,000

12,492

United Therapeutics Corp. (a)

785,300

45,084

Vertex Pharmaceuticals, Inc. (a)

449,000

18,234

 

84,062

Health Care Equipment & Supplies - 1.0%

Intuitive Surgical, Inc. (a)

80,000

27,771

Sonova Holding AG Class B

100,000

12,472

 

40,243

Health Care Providers & Services - 6.3%

Aetna, Inc.

185,500

5,563

CIGNA Corp.

975,900

33,434

Emergency Medical Services Corp. Class A (a)

200,000

10,412

Express Scripts, Inc. (a)

1,341,100

128,759

Medco Health Solutions, Inc. (a)

574,800

36,350

UnitedHealth Group, Inc.

971,000

32,878

 

247,396

Health Care Technology - 0.8%

Cerner Corp. (a)

383,200

31,786

Life Sciences Tools & Services - 0.7%

Life Technologies Corp. (a)

574,800

29,177

Pharmaceuticals - 1.0%

Merck & Co., Inc.

1,068,600

39,410

TOTAL HEALTH CARE

472,074

INDUSTRIALS - 12.5%

Aerospace & Defense - 1.1%

The Boeing Co.

700,000

44,212

Common Stocks - continued

Shares

Value (000s)

INDUSTRIALS - continued

Airlines - 6.9%

AMR Corp. (a)

1,592,000

$ 14,630

Continental Airlines, Inc. Class B (a)

2,900,000

59,914

Delta Air Lines, Inc. (a)

10,782,775

139,317

Southwest Airlines Co.

4,722,100

59,404

 

273,265

Industrial Conglomerates - 0.4%

Textron, Inc.

787,000

15,677

Machinery - 2.4%

Cummins, Inc.

487,900

27,703

Danaher Corp.

200,000

14,794

Kennametal, Inc.

500,000

13,025

Parker Hannifin Corp.

585,500

35,312

Timken Co.

200,000

5,246

 

96,080

Professional Services - 0.6%

Robert Half International, Inc.

800,000

22,320

Road & Rail - 1.1%

CSX Corp.

562,700

26,706

Union Pacific Corp.

281,400

18,958

 

45,664

TOTAL INDUSTRIALS

497,218

INFORMATION TECHNOLOGY - 30.3%

Communications Equipment - 4.1%

Cisco Systems, Inc. (a)

2,549,300

62,024

Juniper Networks, Inc. (a)

942,300

26,366

Research In Motion Ltd. (a)

700,000

49,616

Riverbed Technology, Inc. (a)

500,000

13,625

ZTE Corp. (H Shares)

1,500,000

9,276

 

160,907

Computers & Peripherals - 5.9%

Apple, Inc. (a)

638,300

130,609

Hewlett-Packard Co.

975,900

49,566

Seagate Technology

2,611,600

51,997

 

232,172

Electronic Equipment & Components - 0.8%

Agilent Technologies, Inc. (a)

1,052,000

33,096

Common Stocks - continued

Shares

Value (000s)

INFORMATION TECHNOLOGY - continued

Internet Software & Services - 6.9%

Baidu.com, Inc. sponsored ADR (a)

51,200

$ 26,556

eBay, Inc. (a)

2,627,600

60,487

Google, Inc. Class A (a)

243,500

128,276

Tencent Holdings Ltd.

2,921,700

57,288

 

272,607

IT Services - 1.6%

Cognizant Technology Solutions Corp. Class A (a)

400,000

19,252

Visa, Inc. Class A

530,500

45,241

 

64,493

Semiconductors & Semiconductor Equipment - 4.1%

Aixtron AG (c)

400,000

11,763

Broadcom Corp. Class A

957,900

30,001

Intel Corp.

1,751,700

35,962

Marvell Technology Group Ltd. (a)

2,504,400

48,385

NVIDIA Corp. (a)

1,268,600

20,551

PMC-Sierra, Inc. (a)

2,054,100

17,049

 

163,711

Software - 6.9%

Citrix Systems, Inc. (a)

1,530,900

65,844

Informatica Corp. (a)

1,366,200

34,865

Microsoft Corp.

4,793,800

137,390

Rovi Corp. (a)

485,300

16,258

Taleo Corp. Class A (a)

500,000

11,770

VMware, Inc. Class A (a)

100,000

4,951

 

271,078

TOTAL INFORMATION TECHNOLOGY

1,198,064

MATERIALS - 4.3%

Chemicals - 3.5%

Dow Chemical Co.

3,432,400

97,171

Ferro Corp.

669,400

5,482

Rockwood Holdings, Inc. (a)

878,300

21,070

The Mosaic Co.

239,500

13,984

 

137,707

Metals & Mining - 0.8%

Alcoa, Inc.

2,526,600

33,604

TOTAL MATERIALS

171,311

Common Stocks - continued

Shares

Value (000s)

TELECOMMUNICATION SERVICES - 1.5%

Wireless Telecommunication Services - 1.5%

American Tower Corp. Class A (a)

400,000

$ 17,064

NII Holdings, Inc. (a)

600,000

22,452

Vivo Participacoes SA sponsored ADR

683,100

18,485

 

58,001

TOTAL COMMON STOCKS

(Cost $3,171,101)

3,927,299

Money Market Funds - 1.5%

 

 

 

 

Fidelity Cash Central Fund, 0.16% (e)

13,236,850

13,237

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

48,184,402

48,184

TOTAL MONEY MARKET FUNDS

(Cost $61,421)

61,421

TOTAL INVESTMENT PORTFOLIO - 100.7%

(Cost $3,232,522)

3,988,720

NET OTHER ASSETS - (0.7)%

(29,597)

NET ASSETS - 100%

$ 3,959,123

Legend

(a) Non-income producing

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

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

(d) 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 $10,220,000 or 0.3% of net assets.

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

Affiliated Central Funds

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

Fund

Income earned
(Amounts in thousands)

Fidelity Cash Central Fund

$ 2

Fidelity Securities Lending Cash Central Fund

206

Total

$ 208

Other Information

The following is a summary of the inputs used, as of February 28, 2010, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section at the end of this listing.

Valuation Inputs at Reporting Date:

Description
(Amounts in thousands)

Total

Level 1

Level 2

Level 3

Investments in Securities:

Equities:

Consumer Discretionary

$ 376,109

$ 376,109

$ -

$ -

Consumer Staples

66,057

66,057

-

-

Energy

240,755

240,755

-

-

Financials

847,710

837,490

10,220

-

Health Care

472,074

472,074

-

-

Industrials

497,218

497,218

-

-

Information Technology

1,198,064

1,198,064

-

-

Materials

171,311

171,311

-

-

Telecommunication Services

58,001

58,001

-

-

Money Market Funds

61,421

61,421

-

-

Total Investments in Securities:

$ 3,988,720

$ 3,978,500

$ 10,220

$ -

Income Tax Information

At February 28, 2010, the cost of investment securities for income tax purposes was $3,285,638,000. Net unrealized appreciation aggregated $703,082,000, of which $790,968,000 related to appreciated investment securities and $87,886,000 related to depreciated investment securities.

Investment Valuation

Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Security transactions are accounted for as of trade date. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value calculation under these procedures may differ from published prices for the same securities. The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels. Level 1 - quoted prices in active markets for identical investments. Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds etc.). Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available). Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the Fund's investments by major category are as follows.

Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security specific events arise, comparisons to the valuation of American Depositary Receipts, futures contracts, Exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.

Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as Level 2 in the hierarchy.

For additional information on the Fund's policy regarding valuation of investments and other significant accounting policies, please refer to the Fund's most recent semiannual or annual shareholder report.

Quarterly Report

The fund's schedule of investments as of the date on the cover of this report has not been audited. This report is provided for the general information of the fund's shareholders. For more information regarding the fund and its holdings, please see the fund's most recent prospectus and annual report.

Third party trademarks and service marks are the property of their respective owners. All other trademarks and service marks are the property of FMR LLC or an affiliate.

Quarterly Report

Item 2. Controls and Procedures

(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Financial Trust's (the "Trust") disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.

(a)(ii) There was no change in the Trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the Trust's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Trust's internal control over financial reporting.

Item 3. Exhibits

Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Fidelity Financial Trust

By:

/s/Kenneth B. Robins

 

Kenneth B. Robins

 

President and Treasurer

 

 

Date:

April 29, 2010

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:

/s/Kenneth B. Robins

 

Kenneth B. Robins

 

President and Treasurer

 

 

Date:

April 29, 2010

By:

/s/Christine Reynolds

 

Christine Reynolds

 

Chief Financial Officer

 

 

Date:

April 29, 2010