N-Q 1 fin.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)

Eric D. Roiter, Secretary

82 Devonshire St.

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

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

Date of fiscal year end:

November 30

Date of reporting period:

February 28, 2006

Item 1. Schedule of Investments

Quarterly Holdings Report

for

Fidelity ® Strategic
Dividend & Income Fund

(A Class of Fidelity Advisor
Strategic Dividend & Income Fund)

February 28, 2006

SDI-QTLY-0406

1.814104.101

Investments February 28, 2006 (Unaudited)

Showing Percentage of Net Assets

Corporate Bonds - 12.7%

Principal Amount

Value

Convertible Bonds - 12.4%

CONSUMER DISCRETIONARY - 2.4%

Hotels, Restaurants & Leisure - 1.4%

Carnival Corp. 1.132% 4/29/33 (d)

$5,820,000

$4,331,651

Kerzner International Ltd. 2.375% 4/15/24

4,660,000

5,914,472

Six Flags, Inc. 4.5% 5/15/15

3,300,000

5,855,520

16,101,643

Media - 1.0%

Charter Communications, Inc.:

5.875% 11/16/09 (f)

700,000

501,333

5.875% 11/16/09

10,160,000

7,276,490

XM Satellite Radio Holdings, Inc. 1.75% 12/1/09

580,000

468,292

XM Satellite Radio, Inc. 1.75% 12/1/09 (f)

3,300,000

2,664,420

10,910,535

TOTAL CONSUMER DISCRETIONARY

27,012,178

CONSUMER STAPLES - 0.1%

Food & Staples Retailing - 0.1%

Nash-Finch Co. 1.6314% 3/15/35 (d)

1,520,000

619,081

ENERGY - 1.5%

Energy Equipment & Services - 0.7%

Halliburton Co. 3.125% 7/15/23

4,260,000

7,941,364

Oil, Gas & Consumable Fuels - 0.8%

Chesapeake Energy Corp. 2.75% 11/15/35 (f)

5,000,000

5,237,500

McMoRan Exploration Co. 6% 7/2/08

3,000,000

3,950,040

9,187,540

TOTAL ENERGY

17,128,904

FINANCIALS - 0.6%

Consumer Finance - 0.6%

American Express Co.:

1.85% 12/1/33 (d)(f)

1,800,000

1,949,580

1.85% 12/1/33 (d)

3,850,000

4,169,935

6,119,515

HEALTH CARE - 2.7%

Biotechnology - 1.0%

Amgen, Inc. 0.375% 2/1/13 (f)

5,000,000

5,203,250

Corporate Bonds - continued

Principal Amount

Value

Convertible Bonds - continued

HEALTH CARE - continued

Biotechnology - continued

Protein Design Labs, Inc. 2% 2/15/12 (f)

$1,540,000

$2,193,730

Serologicals Corp.:

4.75% 8/15/33 (f)

770,000

1,317,855

4.75% 8/15/33

1,500,000

2,567,250

11,282,085

Health Care Equipment & Supplies - 1.7%

Bausch & Lomb, Inc. 4.704% 8/1/23 (h)

3,640,000

4,966,598

Cytyc Corp. 2.25% 3/15/24

2,470,000

2,747,875

Fisher Scientific International, Inc.:

2.5% 10/1/23 (f)

995,000

1,513,992

2.5% 10/1/23

2,400,000

3,651,840

Medtronic, Inc. 1.25% 9/15/21

5,480,000

5,474,520

18,354,825

TOTAL HEALTH CARE

29,636,910

INDUSTRIALS - 1.6%

Aerospace & Defense - 0.1%

AAR Corp. 1.75% 2/1/26 (f)

1,000,000

1,051,690

Airlines - 0.2%

US Airways Group, Inc. 7% 9/30/20 (f)

1,140,000

1,819,087

Commercial Services & Supplies - 0.1%

FTI Consulting, Inc. 3.75% 7/15/12 (f)

1,000,000

1,143,800

Electrical Equipment - 0.1%

GrafTech International Ltd. 1.625% 1/15/24

2,180,000

1,569,600

Industrial Conglomerates - 0.6%

Tyco International Group SA yankee 3.125% 1/15/23

5,310,000

6,597,675

Marine - 0.5%

OMI Corp. 2.875% 12/1/24

6,300,000

5,599,440

TOTAL INDUSTRIALS

17,781,292

INFORMATION TECHNOLOGY - 3.5%

Communications Equipment - 0.6%

Comverse Technology, Inc. 0% 5/15/23

2,000,000

3,230,000

Corporate Bonds - continued

Principal Amount

Value

Convertible Bonds - continued

INFORMATION TECHNOLOGY - continued

Communications Equipment - continued

Finisar Corp. 2.5% 10/15/10

$1,430,000

$1,438,938

Juniper Networks, Inc. 0% 6/15/08

2,260,000

2,414,584

7,083,522

Computers & Peripherals - 0.2%

Maxtor Corp. 6.8% 4/30/10

1,510,000

1,704,639

Electronic Equipment & Instruments - 1.1%

Flextronics International Ltd. 1% 8/1/10

6,420,000

5,994,996

Vishay Intertechnology, Inc. 3.625% 8/1/23

6,560,000

6,557,376

12,552,372

Internet Software & Services - 0.4%

aQuantive, Inc. 2.25% 8/15/24

1,800,000

3,831,750

IT Services - 0.5%

DST Systems, Inc.:

Series A, 4.125% 8/15/23 (f)

1,240,000

1,567,360

4.125% 8/15/23

3,470,000

4,386,080

5,953,440

Semiconductors & Semiconductor Equipment - 0.7%

EMCORE Corp. 5% 5/15/11

1,000,000

1,096,250

ON Semiconductor Corp.:

0% 4/15/24

6,500,000

5,655,000

1.875% 12/15/25 (f)

1,250,000

1,405,488

8,156,738

TOTAL INFORMATION TECHNOLOGY

39,282,461

TOTAL CONVERTIBLE BONDS

137,580,341

Nonconvertible Bonds - 0.3%

FINANCIALS - 0.3%

Diversified Financial Services - 0.1%

Wachovia Capital Trust III 5.8% (h)

2,000,000

1,988,688

Corporate Bonds - continued

Principal Amount

Value

Nonconvertible Bonds - continued

FINANCIALS - continued

Thrifts & Mortgage Finance - 0.2%

Washington Mutual Preferred Funding Trust I 6.534% (f)(g)(h)

$2,000,000

$2,001,760

TOTAL FINANCIALS

3,990,448

TOTAL CORPORATE BONDS

(Cost $135,292,387)

141,570,789

Common Stocks - 70.0%

Shares

CONSUMER DISCRETIONARY - 7.3%

Auto Components - 0.1%

Gentex Corp.

55,000

916,300

Automobiles - 0.3%

Ford Motor Co.

200,000

1,594,000

General Motors Corp. (e)

38,000

771,780

Hyundai Motor Co.

7,000

593,681

2,959,461

Diversified Consumer Services - 0.4%

Apollo Group, Inc. Class A (a)

25,500

1,259,190

Coinmach Service Corp. unit

156,800

2,602,880

Service Corp. International (SCI)

143,000

1,136,850

4,998,920

Hotels, Restaurants & Leisure - 1.3%

Centerplate, Inc. unit

318,800

4,138,024

Gaylord Entertainment Co. (a)

21,000

937,650

McDonald's Corp.

110,800

3,868,028

Red Robin Gourmet Burgers, Inc. (a)

31,000

1,239,690

Starwood Hotels & Resorts Worldwide, Inc. unit

65,700

4,171,950

14,355,342

Household Durables - 0.4%

D.R. Horton, Inc.

37,000

1,262,070

KB Home

8,500

569,755

Sony Corp. sponsored ADR

63,000

2,953,440

4,785,265

Common Stocks - continued

Shares

Value

CONSUMER DISCRETIONARY - continued

Internet & Catalog Retail - 0.2%

Coldwater Creek, Inc. (a)

60,000

$1,348,200

Expedia, Inc. (a)

23,750

450,538

IAC/InterActiveCorp (a)

17,750

519,010

2,317,748

Leisure Equipment & Products - 0.7%

Eastman Kodak Co.

261,500

7,335,075

Leapfrog Enterprises, Inc. Class A (a)

25,000

291,250

7,626,325

Media - 1.9%

CBS Corp. Class B

53,565

1,310,200

Clear Channel Communications, Inc.

25,500

721,650

Clear Channel Outdoor Holding, Inc. Class A

40,000

873,600

Gannett Co., Inc.

15,000

932,400

Lamar Advertising Co. Class A (a)

60,000

3,061,200

Live Nation, Inc. (a)

6,450

115,133

Media General, Inc. Class A

28,000

1,402,800

News Corp. Class A

52,400

853,072

Omnicom Group, Inc.

7,000

558,740

The Walt Disney Co.

146,700

4,106,133

Time Warner, Inc.

170,900

2,958,279

Univision Communications, Inc. Class A (a)

108,500

3,629,325

Viacom, Inc. Class B (non-vtg.)

11,565

462,137

20,984,669

Multiline Retail - 0.6%

99 Cents Only Stores (a)

70,000

796,600

Federated Department Stores, Inc.

58,000

4,120,320

KarstadtQuelle AG (a)(e)

40,000

979,429

Lotte Shopping Co. Ltd. GDR (a)(f)

46,000

989,000

6,885,349

Specialty Retail - 1.3%

Best Buy Co., Inc.

70,500

3,797,130

Circuit City Stores, Inc.

26,200

629,586

Eddie Bauer Holdings, Inc. (a)

20,000

300,000

Gymboree Corp. (a)

64,000

1,463,040

Home Depot, Inc.

113,100

4,767,165

Maidenform Brands, Inc.

3,500

33,880

Office Depot, Inc. (a)

10,000

356,800

Staples, Inc.

60,000

1,472,400

Common Stocks - continued

Shares

Value

CONSUMER DISCRETIONARY - continued

Specialty Retail - continued

TJX Companies, Inc.

20,000

$489,800

Urban Outfitters, Inc. (a)

22,000

618,200

13,928,001

Textiles, Apparel & Luxury Goods - 0.1%

Deckers Outdoor Corp. (a)(e)

29,000

983,100

TOTAL CONSUMER DISCRETIONARY

80,740,480

CONSUMER STAPLES - 3.1%

Beverages - 0.4%

Coca-Cola Enterprises, Inc.

55,800

1,096,470

Diageo PLC sponsored ADR

13,000

802,100

PepsiCo, Inc.

11,500

679,765

The Coca-Cola Co.

30,000

1,259,100

3,837,435

Food & Staples Retailing - 0.7%

CVS Corp.

45,000

1,274,850

Kroger Co. (a)

183,000

3,667,320

Safeway, Inc.

48,600

1,181,466

Wal-Mart Stores, Inc.

46,500

2,109,240

8,232,876

Food Products - 0.4%

B&G Foods, Inc. unit

156,900

2,351,931

McCormick & Co., Inc. (non-vtg.)

32,000

1,050,560

Nestle SA (Reg.)

4,000

1,176,112

4,578,603

Household Products - 0.6%

Colgate-Palmolive Co.

118,000

6,428,640

Personal Products - 0.2%

Avon Products, Inc.

94,000

2,711,900

Tobacco - 0.8%

Altria Group, Inc.

121,300

8,721,470

TOTAL CONSUMER STAPLES

34,510,924

ENERGY - 7.2%

Energy Equipment & Services - 2.7%

BJ Services Co.

111,800

3,500,458

FMC Technologies, Inc. (a)

27,000

1,266,840

Common Stocks - continued

Shares

Value

ENERGY - continued

Energy Equipment & Services - continued

GlobalSantaFe Corp.

36,800

$2,036,512

Halliburton Co.

113,200

7,697,600

National Oilwell Varco, Inc. (a)

102,514

6,241,052

Pride International, Inc. (a)

97,300

3,013,381

Schlumberger Ltd. (NY Shares)

35,000

4,025,000

Smith International, Inc.

63,000

2,439,990

30,220,833

Oil, Gas & Consumable Fuels - 4.5%

Amerada Hess Corp.

15,000

2,074,650

Apache Corp.

18,400

1,231,328

Chevron Corp.

104,100

5,879,568

ConocoPhillips

32,400

1,975,104

CONSOL Energy, Inc.

9,000

576,180

El Paso Corp.

177,000

2,315,160

Exxon Mobil Corp.

242,300

14,385,351

Houston Exploration Co. (a)

30,000

1,735,200

International Coal Group, Inc. (a)

47,500

406,125

Massey Energy Co.

30,000

1,116,000

Occidental Petroleum Corp.

22,300

2,041,342

OMI Corp.

50,000

875,000

Overseas Shipholding Group, Inc.

12,000

606,840

Quicksilver Resources, Inc. (a)

76,450

2,776,664

Teekay Shipping Corp.

142,050

5,525,745

Ultra Petroleum Corp. (a)

11,000

572,440

USEC, Inc.

25,000

311,000

Valero Energy Corp.

70,000

3,765,300

XTO Energy, Inc.

43,000

1,801,270

49,970,267

TOTAL ENERGY

80,191,100

FINANCIALS - 25.3%

Capital Markets - 3.2%

Bear Stearns Companies, Inc.

8,200

1,102,408

Charles Schwab Corp.

107,000

1,734,470

Investors Financial Services Corp.

26,000

1,172,860

Lehman Brothers Holdings, Inc.

14,800

2,160,060

Merrill Lynch & Co., Inc.

81,600

6,300,336

Merrill Lynch & Co., Inc. (depositary shares) Series 1, unit

277,700

7,095,235

Morgan Stanley

82,000

4,892,120

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Capital Markets - continued

Nomura Holdings, Inc.

107,000

$2,064,030

Nuveen Investments, Inc. Class A

20,000

963,400

State Street Corp.

83,000

5,185,840

TradeStation Group, Inc. (a)

89,500

1,421,260

UBS AG (NY Shares)

18,000

1,912,140

36,004,159

Commercial Banks - 2.4%

Banco Bradesco SA (PN) sponsored ADR (non-vtg.) (e)

61,000

2,529,060

Bank of America Corp.

204,914

9,395,307

Kookmin Bank sponsored ADR

14,000

1,060,500

Korea Exchange Bank (a)

130,000

1,857,487

UCBH Holdings, Inc.

68,600

1,227,940

Wachovia Corp.

137,884

7,731,156

Wells Fargo & Co.

40,800

2,619,360

26,420,810

Diversified Financial Services - 1.9%

CBOT Holdings, Inc. Class A

300

35,265

Citigroup, Inc.

161,000

7,465,570

Grubb & Ellis Realty Advisors, Inc. unit

21,300

129,930

IntercontinentalExchange, Inc.

1,400

76,650

JPMorgan Chase & Co.

319,904

13,160,851

20,868,266

Insurance - 5.4%

ACE Ltd.

117,200

6,531,556

American International Group, Inc.

379,000

25,150,437

Aspen Insurance Holdings Ltd.

50,000

1,160,500

Endurance Specialty Holdings Ltd.

18,000

567,000

Hartford Financial Services Group, Inc.

76,000

6,260,880

Hilb Rogal & Hobbs Co.

43,000

1,661,950

Montpelier Re Holdings Ltd.

20,000

344,800

Muenchener Rueckversicherungs-Gesellschaft AG (Reg.)

6,500

881,409

Navigators Group, Inc. (a)

7,000

328,300

PartnerRe Ltd.

61,000

3,697,210

Platinum Underwriters Holdings Ltd.

49,700

1,521,814

Scottish Re Group Ltd.

35,000

875,000

Swiss Reinsurance Co. (Reg.)

12,000

854,758

The St. Paul Travelers Companies, Inc.

60,000

2,578,800

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Insurance - continued

W.R. Berkley Corp.

92,700

$5,366,403

XL Capital Ltd. Class A

33,000

2,229,150

60,009,967

Real Estate - 11.1%

Alexandria Real Estate Equities, Inc.

10,200

897,804

Apartment Investment & Management Co. Class A

21,000

930,510

AvalonBay Communities, Inc.

30,160

3,106,480

Boston Properties, Inc.

63,314

5,360,796

CBL & Associates Properties, Inc.

94,440

4,023,144

CenterPoint Properties Trust (SBI)

19,900

992,015

CentraCore Properties Trust

39,100

1,056,482

Columbia Equity Trust, Inc.

58,300

1,007,424

Developers Diversified Realty Corp.

4,300

215,817

Duke Realty Corp.

127,788

4,485,359

Equity Lifestyle Properties, Inc.

55,760

2,659,194

Equity Office Properties Trust

170,110

5,349,960

Equity Residential (SBI)

155,280

7,031,078

General Growth Properties, Inc.

139,725

7,040,743

GMH Communities Trust

66,600

1,106,892

Healthcare Realty Trust, Inc.

40,400

1,507,324

Heritage Property Investment Trust, Inc.

56,200

2,155,832

Host Marriott Corp.

142,400

2,766,832

Inland Real Estate Corp.

133,140

2,049,025

Innkeepers USA Trust (SBI)

44,400

778,332

Kilroy Realty Corp.

20,620

1,542,788

Kimco Realty Corp.

126,180

4,533,647

MeriStar Hospitality Corp. (a)

142,000

1,464,020

National Health Investors, Inc.

18,900

503,118

National Health Realty, Inc.

12,600

249,480

Newcastle Investment Corp.

25,800

617,136

Pan Pacific Retail Properties, Inc.

44,210

3,059,774

Pennsylvania (REIT) (SBI)

12,300

496,920

Plum Creek Timber Co., Inc.

112,680

4,186,062

Post Properties, Inc.

17,300

768,120

Potlatch Corp.

7,300

266,012

ProLogis Trust

156,765

8,233,298

Public Storage, Inc.

30,140

2,351,523

Ramco-Gershenson Properties Trust (SBI)

23,300

677,098

Rayonier, Inc.

28,320

1,220,592

Reckson Associates Realty Corp.

77,760

3,180,384

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Real Estate - continued

Shurgard Storage Centers, Inc. Class A

8,500

$545,105

Simon Property Group, Inc.

71,210

5,908,294

SL Green Realty Corp.

42,600

3,702,366

Sovran Self Storage, Inc.

33,200

1,726,400

Tanger Factory Outlet Centers, Inc.

55,400

1,789,420

Taubman Centers, Inc.

46,500

1,847,910

The Mills Corp.

40,500

1,600,965

Trizec Properties, Inc.

212,050

5,146,454

United Dominion Realty Trust, Inc. (SBI)

241,320

6,455,310

Ventas, Inc.

120,150

3,724,650

Vornado Realty Trust

36,750

3,270,383

123,588,272

Thrifts & Mortgage Finance - 1.3%

Doral Financial Corp.

87,000

970,920

Fannie Mae

124,400

6,802,192

Freddie Mac

55,900

3,767,101

Golden West Financial Corp., Delaware

17,800

1,264,334

Hudson City Bancorp, Inc.

96,000

1,239,360

W Holding Co., Inc.

24,480

196,819

14,240,726

TOTAL FINANCIALS

281,132,200

HEALTH CARE - 7.4%

Biotechnology - 1.7%

Alkermes, Inc. (a)

12,000

304,920

Alnylam Pharmaceuticals, Inc. (a)

105,000

1,688,400

Amgen, Inc. (a)

8,000

603,920

Biogen Idec, Inc. (a)

48,000

2,268,000

BioMarin Pharmaceutical, Inc. (a)

95,000

1,242,600

Cephalon, Inc. (a)(e)

96,000

7,630,080

Genentech, Inc. (a)

8,250

706,943

Illumina, Inc. (a)

65,400

1,663,122

ImClone Systems, Inc. (a)

40,000

1,535,600

MedImmune, Inc. (a)

35,000

1,277,150

ONYX Pharmaceuticals, Inc. (a)

12,000

342,000

Theravance, Inc. (a)

9,100

255,346

19,518,081

Health Care Equipment & Supplies - 2.2%

Aspect Medical Systems, Inc. (a)

15,000

401,850

Common Stocks - continued

Shares

Value

HEALTH CARE - continued

Health Care Equipment & Supplies - continued

Baxter International, Inc.

212,600

$8,046,910

C.R. Bard, Inc.

15,000

982,350

Cooper Companies, Inc.

8,000

419,760

Dionex Corp. (a)

15,000

823,050

Foxhollow Technologies, Inc. (a)

5,900

156,704

Inverness Medical Innovations, Inc. (a)

50,000

1,324,500

Medtronic, Inc.

38,100

2,055,495

PerkinElmer, Inc.

95,000

2,260,050

Thermo Electron Corp. (a)

114,400

3,960,528

Varian, Inc. (a)

15,000

598,500

Waters Corp. (a)

73,000

3,119,290

24,148,987

Health Care Providers & Services - 0.6%

American Retirement Corp. (a)

11,400

306,888

Community Health Systems, Inc. (a)

20,000

758,400

Emdeon Corp. (a)

75,000

790,500

Healthspring, Inc.

2,100

49,560

McKesson Corp.

16,000

866,080

Psychiatric Solutions, Inc. (a)

27,600

911,628

UnitedHealth Group, Inc.

38,200

2,224,386

WebMD Health Corp. Class A

21,800

810,088

6,717,530

Pharmaceuticals - 2.9%

Allergan, Inc.

11,000

1,190,860

Johnson & Johnson

10,000

576,500

Merck & Co., Inc.

185,000

6,449,100

Pfizer, Inc.

498,000

13,042,620

Schering-Plough Corp.

163,600

3,026,600

Teva Pharmaceutical Industries Ltd. sponsored ADR

39,000

1,637,610

Wyeth

121,800

6,065,640

31,988,930

TOTAL HEALTH CARE

82,373,528

INDUSTRIALS - 8.4%

Aerospace & Defense - 3.3%

Embraer - Empresa Brasileira de Aeronautica SA
sponsored ADR

26,000

1,033,500

General Dynamics Corp.

13,200

1,627,164

Goodrich Corp.

45,000

1,882,800

Common Stocks - continued

Shares

Value

INDUSTRIALS - continued

Aerospace & Defense - continued

Hexcel Corp. (a)

151,000

$3,249,520

Honeywell International, Inc.

591,300

24,213,735

Raytheon Co.

36,300

1,575,420

Rockwell Collins, Inc.

11,000

584,650

United Technologies Corp.

52,000

3,042,000

37,208,789

Air Freight & Logistics - 0.2%

EGL, Inc. (a)

35,000

1,415,750

Expeditors International of Washington, Inc.

11,000

855,690

2,271,440

Airlines - 0.4%

ACE Aviation Holdings, Inc. Class A (a)

28,900

852,132

AirTran Holdings, Inc. (a)

74,000

1,315,720

JetBlue Airways Corp. (a)

55,000

627,000

Southwest Airlines Co.

45,100

756,327

UAL Corp. (a)

13,000

461,110

US Airways Group, Inc. (a)

10,500

347,445

4,359,734

Building Products - 0.1%

Masco Corp.

31,100

970,009

Commercial Services & Supplies - 0.5%

Cendant Corp.

95,000

1,578,900

Robert Half International, Inc.

60,200

2,162,384

The Brink's Co.

32,000

1,567,040

5,308,324

Construction & Engineering - 0.6%

Chicago Bridge & Iron Co. NV (NY Shares)

10,000

244,700

Fluor Corp.

54,100

4,668,830

Jacobs Engineering Group, Inc. (a)

23,000

1,972,020

6,885,550

Electrical Equipment - 0.3%

ABB Ltd. sponsored ADR (a)

25,000

301,250

Cooper Industries Ltd. Class A

10,000

837,000

Rockwell Automation, Inc.

30,000

2,045,100

3,183,350

Industrial Conglomerates - 2.1%

General Electric Co.

566,200

18,610,994

Common Stocks - continued

Shares

Value

INDUSTRIALS - continued

Industrial Conglomerates - continued

Smiths Group PLC

58,000

$955,345

Tyco International Ltd.

126,800

3,270,172

22,836,511

Machinery - 0.4%

Deere & Co.

40,000

3,050,800

Watts Water Technologies, Inc. Class A

27,000

966,060

4,016,860

Road & Rail - 0.2%

Norfolk Southern Corp.

42,700

2,185,386

Old Dominion Freight Lines, Inc. (a)

12,000

316,320

2,501,706

Trading Companies & Distributors - 0.2%

H&E Equipment Services, Inc.

3,600

90,324

Interline Brands, Inc. (a)

15,000

348,750

WESCO International, Inc. (a)

36,000

2,063,520

2,502,594

Transportation Infrastructure - 0.1%

Grupo Aeroportuario del Pacifico SA de CV sponsored ADR

23,600

679,680

TOTAL INDUSTRIALS

92,724,547

INFORMATION TECHNOLOGY - 5.8%

Communications Equipment - 0.8%

Alcatel SA sponsored ADR (a)

20,000

270,000

Comverse Technology, Inc. (a)

84,000

2,415,840

Dycom Industries, Inc. (a)

55,000

1,174,250

Extreme Networks, Inc. (a)

100,000

463,000

MasTec, Inc. (a)

86,700

1,122,765

Nokia Corp. sponsored ADR

112,000

2,080,960

Nortel Networks Corp. (a)

330,000

943,800

8,470,615

Computers & Peripherals - 1.2%

EMC Corp. (a)

18,000

252,360

Hewlett-Packard Co.

302,900

9,938,149

Palm, Inc. (a)

8,000

330,400

Seagate Technology

115,000

3,055,550

13,576,459

Electronic Equipment & Instruments - 1.1%

Agilent Technologies, Inc. (a)

114,100

4,107,600

Common Stocks - continued

Shares

Value

INFORMATION TECHNOLOGY - continued

Electronic Equipment & Instruments - continued

Amphenol Corp. Class A

14,000

$703,220

Avnet, Inc. (a)

5,000

125,650

Jabil Circuit, Inc. (a)

28,000

1,059,800

Molex, Inc.

25,000

795,750

Symbol Technologies, Inc.

163,200

1,896,384

Trimble Navigation Ltd. (a)

35,000

1,431,850

Vishay Intertechnology, Inc. (a)

127,000

1,844,040

11,964,294

Internet Software & Services - 0.5%

Digital River, Inc. (a)

13,000

489,320

eBay, Inc. (a)

44,500

1,782,670

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

6,900

2,502,078

Yahoo!, Inc. (a)

25,000

801,500

5,575,568

IT Services - 0.3%

Ceridian Corp. (a)

60,000

1,551,600

First Data Corp.

45,000

2,030,850

3,582,450

Office Electronics - 0.2%

Xerox Corp. (a)

92,000

1,370,800

Zebra Technologies Corp. Class A (a)

15,000

662,100

2,032,900

Semiconductors & Semiconductor Equipment - 0.8%

Altera Corp. (a)

30,000

601,200

Freescale Semiconductor, Inc. Class A (a)

51,500

1,384,835

Intel Corp.

35,000

721,000

Marvell Technology Group Ltd. (a)

19,000

1,163,180

Maxim Integrated Products, Inc.

22,000

859,980

Micron Technology, Inc. (a)

99,000

1,535,490

PMC-Sierra, Inc. (a)

56,800

579,928

Samsung Electronics Co. Ltd.

1,480

1,037,702

Teradyne, Inc. (a)

50,000

839,500

8,722,815

Software - 0.9%

BEA Systems, Inc. (a)

85,900

985,273

Cognos, Inc. (a)

20,000

768,737

Macrovision Corp. (a)

35,000

707,350

Microsoft Corp.

133,900

3,601,910

NAVTEQ Corp. (a)

40,000

1,852,400

Common Stocks - continued

Shares

Value

INFORMATION TECHNOLOGY - continued

Software - continued

Symantec Corp. (a)

102,000

$1,722,780

Ulticom, Inc. (a)

40,000

447,200

10,085,650

TOTAL INFORMATION TECHNOLOGY

64,010,751

MATERIALS - 3.0%

Chemicals - 1.3%

Chemtura Corp.

85,100

942,908

Cytec Industries, Inc.

23,000

1,226,820

E.I. du Pont de Nemours & Co.

76,600

3,082,384

Ecolab, Inc.

35,100

1,270,269

Georgia Gulf Corp.

28,000

803,600

Lyondell Chemical Co.

44,733

935,814

Monsanto Co.

7,000

587,160

NOVA Chemicals Corp.

37,000

1,205,272

Praxair, Inc.

40,000

2,159,200

Rockwood Holdings, Inc.

38,000

870,200

Rohm & Haas Co.

27,000

1,343,250

14,426,877

Construction Materials - 0.2%

Martin Marietta Materials, Inc.

16,000

1,560,000

Containers & Packaging - 0.5%

Ball Corp.

15,000

639,000

Owens-Illinois, Inc. (a)

84,700

1,587,278

Packaging Corp. of America

84,400

1,925,164

Smurfit-Stone Container Corp. (a)

125,000

1,640,000

5,791,442

Metals & Mining - 1.0%

Alcoa, Inc.

69,700

2,043,604

Allegheny Technologies, Inc.

9,000

454,590

Freeport-McMoRan Copper & Gold, Inc. Class B

18,000

911,340

Mittal Steel Co. NV Class A (NY Shares)

28,000

927,360

Newmont Mining Corp.

104,800

5,546,016

Oregon Steel Mills, Inc. (a)

35,000

1,325,800

11,208,710

TOTAL MATERIALS

32,987,029

Common Stocks - continued

Shares

Value

TELECOMMUNICATION SERVICES - 1.9%

Diversified Telecommunication Services - 0.9%

AT&T, Inc.

237,800

$6,560,902

CenturyTel, Inc.

48,689

1,751,830

Covad Communications Group, Inc. (a)

375,000

487,500

Verizon Communications, Inc.

34,800

1,172,760

9,972,992

Wireless Telecommunication Services - 1.0%

American Tower Corp. Class A (a)

168,000

5,347,440

Leap Wireless International, Inc. (a)

16,000

673,760

Sprint Nextel Corp.

228,885

5,500,107

11,521,307

TOTAL TELECOMMUNICATION SERVICES

21,494,299

UTILITIES - 0.6%

Electric Utilities - 0.2%

PPL Corp.

50,600

1,609,080

Westar Energy, Inc.

20,000

430,400

2,039,480

Independent Power Producers & Energy Traders - 0.2%

AES Corp. (a)

55,600

961,880

Mirant Corp. (a)

53,377

1,313,074

2,274,954

Multi-Utilities - 0.2%

CMS Energy Corp. (a)

94,700

1,333,376

PG&E Corp.

35,200

1,339,360

2,672,736

TOTAL UTILITIES

6,987,170

TOTAL COMMON STOCKS

(Cost $658,901,853)

777,152,028

Preferred Stocks - 14.0%

Convertible Preferred Stocks - 4.9%

CONSUMER DISCRETIONARY - 0.2%

Hotels, Restaurants & Leisure - 0.2%

Six Flags, Inc. 7.25% PIERS

82,700

1,906,235

Preferred Stocks - continued

Shares

Value

Convertible Preferred Stocks - continued

CONSUMER DISCRETIONARY - continued

Media - 0.0%

Emmis Communications Corp. Series A, 6.25%

10,100

$404,000

TOTAL CONSUMER DISCRETIONARY

2,310,235

ENERGY - 2.1%

Oil, Gas & Consumable Fuels - 2.1%

Chesapeake Energy Corp. 4.50%

15,000

1,370,700

El Paso Corp. 4.99% (f)

10,000

11,580,500

Valero Energy Corp. 2.00%

96,600

10,334,268

23,285,468

FINANCIALS - 0.2%

Diversified Financial Services - 0.2%

Carriage Services Capital Trust 7.00% TIDES

45,000

1,755,000

INDUSTRIALS - 0.2%

Road & Rail - 0.2%

Kansas City Southern:

4.25%

1,370

1,077,272

5.125%

1,000

1,018,750

2,096,022

MATERIALS - 1.2%

Chemicals - 0.7%

Celanese Corp. 4.25%

252,600

7,701,774

Containers & Packaging - 0.4%

Owens-Illinois, Inc. 4.75%

113,510

3,916,095

Metals & Mining - 0.1%

Freeport-McMoRan Copper & Gold, Inc. 5.50% (f)

1,050

1,201,044

TOTAL MATERIALS

12,818,913

UTILITIES - 1.0%

Electric Utilities - 0.6%

AES Trust VII 6.00%

140,500

6,727,140

Preferred Stocks - continued

Shares

Value

Convertible Preferred Stocks - continued

UTILITIES - continued

Independent Power Producers & Energy Traders - 0.4%

NRG Energy, Inc.:

4.00% (f)

3,900

$4,727,436

Series A, 5.75%

1,000

232,960

4,960,396

TOTAL UTILITIES

11,687,536

TOTAL CONVERTIBLE PREFERRED STOCKS

53,953,174

Nonconvertible Preferred Stocks - 9.1%

CONSUMER DISCRETIONARY - 0.1%

Household Durables - 0.1%

Hovnanian Enterprises, Inc. Series A, 7.625%

40,000

977,440

CONSUMER STAPLES - 0.1%

Food Products - 0.1%

H.J. Heinz Finance Co. 6.226%

10

1,026,500

ENERGY - 0.1%

Oil, Gas & Consumable Fuels - 0.1%

Apache Corp. (depositary shares) Series B, 5.68%

9,875

992,438

FINANCIALS - 5.9%

Capital Markets - 1.3%

Bear Stearns Companies, Inc.:

Series E, 6.155%

15,000

768,300

Series G, 5.49%

15,000

736,800

Goldman Sachs Group, Inc.:

Series A, 3.9106%

120,000

3,108,000

Series C, 4.9931%

40,000

1,051,600

Lehman Brothers Holdings, Inc. (depositary shares) Series F, 6.50%

169,015

4,363,967

Merrill Lynch & Co., Inc. Series H, 3.97%

120,000

3,038,400

Morgan Stanley Capital Trust IV 6.60%

80,000

2,026,400

15,093,467

Commercial Banks - 1.3%

ABN AMRO Capital Funding Trust V 5.90%

20,000

483,000

ABN Amro Capital Funding Trust VII 6.08%

40,400

1,003,940

First Tennessee Bank NA, Memphis 3.90% (f)

5,000

5,143,750

Preferred Stocks - continued

Shares

Value

Nonconvertible Preferred Stocks - continued

FINANCIALS - continued

Commercial Banks - continued

HSBC USA, Inc.:

Series F, 3.87%

160,000

$4,144,000

Series G, 4.9175%

80,000

2,104,000

Santander Finance Preferred SA Unipersonal 6.41%

69,400

1,731,530

14,610,220

Consumer Finance - 0.3%

SLM Corp.:

4.07%

10,000

1,035,000

Series A, 6.97%

43,400

2,421,720

3,456,720

Diversified Financial Services - 0.2%

CIT Group, Inc. Series B, 5.189%

15,000

1,481,850

JPMorgan Chase & Co. (depositary shares) Series H, 6.625%

6,530

333,683

1,815,533

Insurance - 0.2%

AmerUs Group Co. 7.25%

40,000

1,051,200

MetLife, Inc. Series A, 4.39%

40,000

1,040,400

2,091,600

Real Estate - 0.6%

Apartment Investment & Management Co.:

Series Q, 10.10%

46,510

1,163,215

Series V, 8.00%

79,000

2,006,600

Duke Realty Corp. (depositary shares) Series K, 6.50%

95,800

2,371,050

Host Marriott Corp. Series E, 8.875%

20,000

534,400

Vornado Realty Trust Series E, 7.00%

40,000

1,022,400

7,097,665

Thrifts & Mortgage Finance - 2.0%

Fannie Mae:

7.00%

42,200

2,304,120

Series H, 5.81%

69,200

3,477,300

Series L, 5.125%

90,900

4,197,762

Series N, 5.50%

71,650

3,457,113

Freddie Mac:

Series F, 5.00%

58,500

2,574,000

Series H, 5.10%

10,300

471,843

Series K, 5.79%

35,200

1,763,520

Preferred Stocks - continued

Shares

Value

Nonconvertible Preferred Stocks - continued

FINANCIALS - continued

Thrifts & Mortgage Finance - continued

Freddie Mac: - continued

Series O, 5.81%

19,500

$995,475

Series R, 5.70%

57,000

2,775,900

22,017,033

TOTAL FINANCIALS

66,182,238

INDUSTRIALS - 0.0%

Aerospace & Defense - 0.0%

RC Trust I 7.00% (a)

9,680

485,513

MATERIALS - 0.1%

Chemicals - 0.1%

E.I. du Pont de Nemours & Co. Series B, 4.50%

9,900

811,800

Metals & Mining - 0.0%

Alcoa, Inc. 3.75%

6,400

468,800

TOTAL MATERIALS

1,280,600

UTILITIES - 2.8%

Electric Utilities - 2.4%

Alabama Power Co. 5.30%

88,600

2,223,860

Duquesne Light Co. 6.50%

106,050

5,445,668

Entergy Louisiana LLC 6.95% (f)

7,500

751,875

FPL Group Capital Trust I 5.875%

20,000

491,200

Heco Capital Trust III 6.50%

12,000

305,160

Pacific Gas & Electric Co.:

Series A, 5.00%

16,900

365,378

Series B, 5.50%

61,900

1,460,840

Series D 5.00%

69,200

1,477,420

Southern California Edison Co.:

4.78%

46,500

1,010,910

5.349%

40,000

4,000,000

6.125%

30,000

3,045,000

Series B, 4.08%

27,271

518,422

Series C:

4.24%

94,600

1,787,940

Preferred Stocks - continued

Shares

Value

Nonconvertible Preferred Stocks - continued

UTILITIES - continued

Electric Utilities - continued

Southern California Edison Co.: - continued

6.00%

20,000

$2,000,000

Series D, 4.32%

70,000

1,386,000

26,269,673

Multi-Utilities - 0.4%

Consolidated Edison Co. of New York, Inc. Series A, 5.00%

28,705

2,627,943

San Diego Gas & Electric Co. 1.70%

67,548

1,745,697

4,373,640

TOTAL UTILITIES

30,643,313

TOTAL NONCONVERTIBLE PREFERRED STOCKS

101,588,042

TOTAL PREFERRED STOCKS

(Cost $145,407,547)

155,541,216

Money Market Funds - 4.4%

Fidelity Cash Central Fund, 4.57% (b)

40,024,022

40,024,022

Fidelity Securities Lending Cash Central Fund, 4.58% (b)(c)

9,336,750

9,336,750

TOTAL MONEY MARKET FUNDS

(Cost $49,360,772)

49,360,772

TOTAL INVESTMENT PORTFOLIO - 101.1%

(Cost $988,962,559)

1,123,624,805

NET OTHER ASSETS - (1.1)%

(12,578,458)

NET ASSETS - 100%

$1,111,046,347

Security Type Abbreviations

PIERS-Preferred Income Equity
Redeemable Securities

TIDES-Term Income Deferred
Equity Securities

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)Debt obligation 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)Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the period end, the value of these securities amounted to $53,964,450 or 4.9% of net assets.

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

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

Affiliated Central Funds

Information regarding fiscal year to date income earned by the fund from the affiliated Central funds is as follows:

Fund

Income earned

Fidelity Cash Central Fund

$364,800

Fidelity Securities Lending Cash Central Fund

19,557

Total

$384,357

Income Tax Information

At February 28, 2006, the aggregate cost of investment securities for income tax purposes was $990,837,896. Net unrealized appreciation aggregated $132,786,909, of which $151,392,465 related to appreciated investment securities and $18,605,556 related to depreciated investment securities.

Investment Valuation

Investments are valued as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Security transactions are accounted for as of trade date. Wherever possible, the fund uses independent pricing services approved by the Board of Trustees to value its investments. 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 yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. 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. 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. The frequency of when fair value pricing is used is unpredictable. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities. Investments in open-end mutual 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.

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 Corp. or an affiliate.

Quarterly Report

Quarterly Holdings Report

for

Fidelity ® Convertible Securities Fund

February 28, 2006

CVS-QTLY-0406

1.797939.102

Investments February 28, 2006 (Unaudited)

Showing Percentage of Net Assets

Corporate Bonds - 59.5%

Principal Amount (000s) (d)

Value
(000s)

Convertible Bonds - 58.7%

CONSUMER DISCRETIONARY - 9.3%

Auto Components - 0.5%

American Axle & Manufacturing Holdings, Inc. 2% 2/15/24 (f)

$12,500

$9,056

Hotels, Restaurants & Leisure - 4.6%

Kerzner International Ltd.:

2.375% 4/15/24 (h)

4,000

5,077

2.375% 4/15/24

18,900

23,988

Six Flags, Inc. 4.5% 5/15/15

27,700

49,151

WMS Industries, Inc.:

2.75% 7/15/10 (h)

4,000

6,220

2.75% 7/15/10

2,800

4,354

88,790

Leisure Equipment & Products - 0.3%

Eastman Kodak Co. 3.375% 10/15/33 (h)

5,800

6,188

Media - 3.3%

Charter Communications, Inc.:

5.875% 11/16/09 (h)

11,300

8,093

5.875% 11/16/09

30,840

22,087

Lamar Advertising Co. 2.875% 12/31/10

8,200

9,286

XM Satellite Radio Holdings, Inc. 1.75% 12/1/09

400

323

XM Satellite Radio, Inc. 1.75% 12/1/09 (h)

30,300

24,464

64,253

Specialty Retail - 0.6%

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

10,000

10,910

TOTAL CONSUMER DISCRETIONARY

179,197

CONSUMER STAPLES - 0.4%

Food & Staples Retailing - 0.4%

Nash-Finch Co. 1.6314% 3/15/35 (f)

18,480

7,527

ENERGY - 7.0%

Energy Equipment & Services - 4.3%

Halliburton Co. 3.125% 7/15/23

39,400

73,448

Maverick Tube Corp. 1.875% 11/15/25 (h)

3,000

3,915

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

4,500

5,816

83,179

Corporate Bonds - continued

Principal Amount (000s) (d)

Value
(000s)

Convertible Bonds - continued

ENERGY - continued

Oil, Gas & Consumable Fuels - 2.7%

McMoRan Exploration Co.:

6% 7/2/08 (h)

$1,000

$1,317

6% 7/2/08

12,900

16,985

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

24,500

33,910

52,212

TOTAL ENERGY

135,391

FINANCIALS - 2.6%

Consumer Finance - 2.5%

American Express Co.:

1.85% 12/1/33 (f)(h)

31,800

34,443

1.85% 12/1/33 (f)

12,600

13,647

48,090

Insurance - 0.1%

Scottish Re Group Ltd. 4.5% 12/1/22

1,800

2,141

TOTAL FINANCIALS

50,231

HEALTH CARE - 9.8%

Biotechnology - 2.5%

Amgen, Inc. 0.375% 2/1/13 (h)

25,000

26,016

Protein Design Labs, Inc. 2% 2/15/12 (h)

15,500

22,080

48,096

Health Care Equipment & Supplies - 6.1%

Bausch & Lomb, Inc. 4.704% 8/1/23 (i)

29,500

40,251

Cooper Companies, Inc. 2.625% 7/1/23

10,000

12,625

Cytyc Corp. 2.25% 3/15/24

6,480

7,209

Fisher Scientific International, Inc.:

2.5% 10/1/23 (h)

15,600

23,737

2.5% 10/1/23

7,400

11,260

Medtronic, Inc. 1.25% 9/15/21

23,000

22,977

118,059

Pharmaceuticals - 1.2%

Roche Holdings, Inc. 0% 7/25/21 (h)

30,000

23,775

TOTAL HEALTH CARE

189,930

Corporate Bonds - continued

Principal Amount (000s) (d)

Value
(000s)

Convertible Bonds - continued

INDUSTRIALS - 8.4%

Aerospace & Defense - 0.1%

AAR Corp. 1.75% 2/1/26 (h)

$2,500

$2,629

Airlines - 2.0%

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

10,000

18,388

US Airways Group, Inc. 7% 9/30/20 (h)

12,160

19,404

37,792

Commercial Services & Supplies - 0.7%

FTI Consulting, Inc. 3.75% 7/15/12 (h)

11,995

13,720

Construction & Engineering - 1.3%

Fluor Corp. 1.5% 2/15/24

15,700

24,707

Electrical Equipment - 0.2%

GrafTech International Ltd. 1.625% 1/15/24

3,820

2,750

Industrial Conglomerates - 3.2%

Tyco International Group SA:

3.125% 1/15/23 (h)

39,900

49,576

yankee 3.125% 1/15/23

10,100

12,549

62,125

Marine - 0.9%

OMI Corp. 2.875% 12/1/24

20,400

18,132

TOTAL INDUSTRIALS

161,855

INFORMATION TECHNOLOGY - 14.9%

Communications Equipment - 3.4%

AudioCodes Ltd. 2% 11/9/24 (h)

10,000

9,105

Comverse Technology, Inc. 0% 5/15/23

11,800

19,057

Finisar Corp. 2.5% 10/15/10

10,000

10,063

Juniper Networks, Inc. 0% 6/15/08

20,900

22,330

SafeNet, Inc. 2.5% 12/15/10 (h)

5,450

4,874

65,429

Computers & Peripherals - 1.7%

Maxtor Corp.:

2.375% 8/15/12 (h)

10,000

15,900

6.8% 4/30/10

15,000

16,934

32,834

Corporate Bonds - continued

Principal Amount (000s) (d)

Value
(000s)

Convertible Bonds - continued

INFORMATION TECHNOLOGY - continued

Electronic Equipment & Instruments - 4.5%

Flextronics International Ltd. 1% 8/1/10

$7,580

$7,078

Vishay Intertechnology, Inc. 3.625% 8/1/23

80,700

80,668

87,746

Internet Software & Services - 0.4%

aQuantive, Inc. 2.25% 8/15/24

3,150

6,706

IT Services - 1.9%

DST Systems, Inc.:

Series A, 4.125% 8/15/23 (h)

12,300

15,547

4.125% 8/15/23

16,800

21,235

36,782

Semiconductors & Semiconductor Equipment - 3.0%

Amkor Technology, Inc. 5% 3/15/07

9,800

9,580

EMCORE Corp. 5% 5/15/11

9,000

9,866

Intel Corp. 2.95% 12/15/35 (h)

10,000

8,908

ON Semiconductor Corp.:

0% 4/15/24

29,500

25,665

1.875% 12/15/25 (h)

3,750

4,216

58,235

TOTAL INFORMATION TECHNOLOGY

287,732

MATERIALS - 1.0%

Metals & Mining - 1.0%

Alamos Gold, Inc. 5.5% 2/15/10 (h)

CAD

10,250

15,788

Coeur d'Alene Mines Corp. 1.25% 1/15/24

4,600

4,334

20,122

TELECOMMUNICATION SERVICES - 4.4%

Wireless Telecommunication Services - 4.4%

American Tower Corp.:

3.25% 8/1/10 (h)

11,900

31,856

3.25% 8/1/10

7,255

19,422

ICO North America, Inc. 7.5% 8/15/09 (j)

5,905

7,736

NII Holdings, Inc.:

2.875% 2/1/34 (h)

2,000

4,001

2.875% 2/1/34

11,500

23,008

86,023

Corporate Bonds - continued

Principal Amount (000s) (d)

Value
(000s)

Convertible Bonds - continued

UTILITIES - 0.9%

Multi-Utilities - 0.9%

CMS Energy Corp. 3.375% 7/15/23

$11,800

$16,544

TOTAL CONVERTIBLE BONDS

1,134,552

Nonconvertible Bonds - 0.8%

CONSUMER DISCRETIONARY - 0.5%

Auto Components - 0.5%

IdleAire Technologies Corp. 0% 12/15/12 unit (e)(h)

12,510

9,257

CONSUMER STAPLES - 0.1%

Food Products - 0.1%

Doane Pet Care Co. 10.625% 11/15/15 (h)

2,080

2,192

ENERGY - 0.2%

Oil, Gas & Consumable Fuels - 0.2%

El Paso Corp. 6.95% 6/1/28 (h)

3,420

3,266

TOTAL NONCONVERTIBLE BONDS

14,715

TOTAL CORPORATE BONDS

(Cost $997,114)

1,149,267

Common Stocks - 18.5%

Shares

CONSUMER DISCRETIONARY - 2.6%

Diversified Consumer Services - 0.6%

Coinmach Service Corp. Class A

359,400

3,371

Service Corp. International (SCI)

1,143,000

9,087

12,458

Household Durables - 0.3%

Jarden Corp. (a)

161,700

4,849

Media - 1.7%

EchoStar Communications Corp. Class A (a)

1,099,069

32,280

TOTAL CONSUMER DISCRETIONARY

49,587

Common Stocks - continued

Shares

Value
(000s)

ENERGY - 4.9%

Energy Equipment & Services - 1.0%

Hercules Offshore, Inc.

17,500

$532

National Oilwell Varco, Inc. (a)

320,900

19,536

20,068

Oil, Gas & Consumable Fuels - 3.9%

El Paso Corp.

754,200

9,865

General Maritime Corp.

162,000

5,934

OMI Corp.

200,000

3,500

Sasol Ltd. sponsored ADR (g)

612,600

21,073

Teekay Shipping Corp.

895,626

34,840

75,212

TOTAL ENERGY

95,280

FINANCIALS - 0.7%

Capital Markets - 0.7%

Lazard Ltd. unit

400,000

13,876

INDUSTRIALS - 1.7%

Airlines - 0.3%

Ryanair Holdings PLC sponsored ADR (a)

130,000

6,902

Building Products - 1.0%

American Standard Companies, Inc.

503,600

19,932

Commercial Services & Supplies - 0.1%

Global Cash Access Holdings, Inc.

71,600

1,210

Machinery - 0.3%

FreightCar America, Inc.

76,700

5,407

Marine - 0.0%

American Commercial Lines, Inc.

4,100

156

TOTAL INDUSTRIALS

33,607

INFORMATION TECHNOLOGY - 2.5%

Computers & Peripherals - 1.2%

Seagate Technology

846,000

22,478

Internet Software & Services - 0.0%

Homestore, Inc. (a)

31,846

198

Common Stocks - continued

Shares

Value
(000s)

INFORMATION TECHNOLOGY - continued

Semiconductors & Semiconductor Equipment - 1.3%

Amkor Technology, Inc. (a)

1,243,200

$11,040

ON Semiconductor Corp. (a)

2,169,500

14,297

25,337

TOTAL INFORMATION TECHNOLOGY

48,013

MATERIALS - 5.8%

Chemicals - 3.4%

Celanese Corp. Class A

2,700,000

57,780

Monsanto Co.

100,000

8,388

66,168

Containers & Packaging - 0.7%

Temple-Inland, Inc.

299,900

12,797

Paper & Forest Products - 1.7%

Aracruz Celulose SA (PN-B) sponsored ADR

247,300

12,155

Weyerhaeuser Co.

300,000

20,487

32,642

TOTAL MATERIALS

111,607

UTILITIES - 0.3%

Independent Power Producers & Energy Traders - 0.3%

Mirant Corp. (a)

190,060

4,675

TOTAL COMMON STOCKS

(Cost $310,148)

356,645

Convertible Preferred Stocks - 18.8%

CONSUMER DISCRETIONARY - 2.0%

Automobiles - 1.4%

General Motors Corp. Series B, 5.25%

1,750,000

26,513

Hotels, Restaurants & Leisure - 0.1%

Six Flags, Inc. 7.25% PIERS

54,700

1,261

Media - 0.5%

Interpublic Group of Companies, Inc. Series B, 5.25% (h)

10,000

9,804

TOTAL CONSUMER DISCRETIONARY

37,578

Convertible Preferred Stocks - continued

Shares

Value
(000s)

CONSUMER STAPLES - 0.4%

Food & Staples Retailing - 0.4%

Rite Aid Corp. 5.50%

370,000

$7,901

ENERGY - 11.5%

Oil, Gas & Consumable Fuels - 11.5%

Chesapeake Energy Corp.:

4.50%

70,000

6,397

5.00% (h)

55,000

7,288

5.00%

155,000

20,538

5.00% (h)

149,600

15,165

El Paso Corp. 4.99% (h)

101,400

117,424

Goodrich Petroleum Corp. Series B, 5.375% (h)

93,500

4,701

Valero Energy Corp. 2.00%

473,800

50,687

222,200

FINANCIALS - 0.6%

Diversified Financial Services - 0.4%

Citigroup Funding, Inc. 4.583%

270,000

8,402

Thrifts & Mortgage Finance - 0.2%

Doral Financial Corp. 4.75% (h)

21,400

3,424

TOTAL FINANCIALS

11,826

INDUSTRIALS - 0.6%

Commercial Services & Supplies - 0.6%

Allied Waste Industries, Inc. Series D, 6.25%

40,000

12,119

MATERIALS - 3.6%

Chemicals - 3.6%

Celanese Corp. 4.25%

2,121,600

64,688

Huntsman Corp. 5.00%

125,000

5,553

70,241

UTILITIES - 0.1%

Independent Power Producers & Energy Traders - 0.1%

NRG Energy, Inc. Series A, 5.75%

5,800

1,351

TOTAL CONVERTIBLE PREFERRED STOCKS

(Cost $323,181)

363,216

Money Market Funds - 3.6%

Shares

Value
(000s)

Fidelity Cash Central Fund, 4.57% (b)

65,140,293

$65,140

Fidelity Securities Lending Cash Central Fund, 4.58% (b)(c)

4,791,600

4,792

TOTAL MONEY MARKET FUNDS

(Cost $69,932)

69,932

TOTAL INVESTMENT PORTFOLIO - 100.4%

(Cost $1,700,375)

1,939,060

NET OTHER ASSETS - (0.4)%

(8,259)

NET ASSETS - 100%

$1,930,801

Currency Abbreviation

CAD-Canadian dollar

Security Type Abbreviation

PIERS-Preferred Income Equity
Redeemable Securities

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

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

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

(h)Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the period end, the value of these securities amounted to $604,006,000 or 31.3% of net assets.

(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 $7,736,000 or 0.4% of net assets.

Additional information on each holding is as follows:

Security

Acquisition Date

Acquisition Cost (000s)

ICO North America, Inc. 7.5% 8/15/09

8/12/05

$5,905

Affiliated Central Funds

Information regarding fiscal year to date income earned by the fund from the affiliated Central funds is as follows:

Fund

Income earned
(Amounts in thousands)

Fidelity Cash Central Fund

$196

Fidelity Securities Lending Cash Central Fund

2

Total

$198

Income Tax Information

At February 28, 2006, the aggregate cost of investment securities for income tax purposes was $1,699,329,000. Net unrealized appreciation aggregated $239,731,000, of which $296,857,000 related to appreciated investment securities and $57,126,000 related to depreciated investment securities.

Investment Valuation

Investments are valued as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Security transactions are accounted for as of trade date. Wherever possible, the fund uses independent pricing services approved by the Board of Trustees to value its investments. 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 yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. 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. 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. The frequency of when fair value pricing is used is unpredictable. The value of securities used for NAV calculation under fair value pricingmay differ from published prices for the same securities. Investments in open-end mutual 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.

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 Corp. or an affiliate.

Quarterly Report

Quarterly Holdings Report

for

Fidelity ® Independence Fund

February 28, 2006

FRE-QTLY-0406

1.797942.102

Investments February 28, 2006 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 97.3%

Shares

Value (000s)

CONSUMER DISCRETIONARY - 10.4%

Diversified Consumer Services - 1.5%

Bright Horizons Family Solutions, Inc. (a)

221,000

$7,406

Sothebys Holdings, Inc. Class A (ltd. vtg.) (a)

1,950,500

41,195

Universal Technical Institute, Inc. (a)

571,200

17,599

66,200

Hotels, Restaurants & Leisure - 3.5%

Carnival Corp. unit

1,243,010

64,201

Domino's Pizza, Inc.

570,900

14,558

Kerzner International Ltd. (a)

478,766

32,216

Ruth's Chris Steak House, Inc. (e)

1,563,305

33,642

Starwood Hotels & Resorts Worldwide, Inc. unit

218,600

13,881

158,498

Household Durables - 0.4%

Garmin Ltd.

139,700

9,614

Samson Holding Ltd.

9,727,000

5,674

15,288

Internet & Catalog Retail - 0.9%

Coldwater Creek, Inc. (a)

637,800

14,331

VistaPrint Ltd.

761,294

27,528

41,859

Media - 0.1%

Digital Music Group, Inc.

66,300

655

McGraw-Hill Companies, Inc.

82,200

4,364

5,019

Multiline Retail - 0.9%

Target Corp.

776,500

42,242

Specialty Retail - 2.5%

A.C. Moore Arts & Crafts, Inc. (a)

165,000

2,970

bebe Stores, Inc.

396,259

6,804

Best Buy Co., Inc.

600,231

32,328

Circuit City Stores, Inc.

2,329,200

55,971

Guitar Center, Inc. (a)

337,999

17,495

115,568

Common Stocks - continued

Shares

Value (000s)

CONSUMER DISCRETIONARY - continued

Textiles, Apparel & Luxury Goods - 0.6%

Carter's, Inc. (a)

166,100

$10,629

Polo Ralph Lauren Corp. Class A

294,400

17,063

27,692

TOTAL CONSUMER DISCRETIONARY

472,366

CONSUMER STAPLES - 4.7%

Food & Staples Retailing - 0.9%

Walgreen Co.

873,800

39,199

Household Products - 1.7%

Colgate-Palmolive Co.

1,415,500

77,116

Personal Products - 2.1%

Avon Products, Inc.

1,894,200

54,648

Herbalife Ltd. (a)

1,379,452

42,749

97,397

TOTAL CONSUMER STAPLES

213,712

ENERGY - 6.7%

Energy Equipment & Services - 3.1%

Halliburton Co.

1,108,500

75,378

Schlumberger Ltd. (NY Shares)

326,700

37,571

Smith International, Inc.

684,100

26,495

139,444

Oil, Gas & Consumable Fuels - 3.6%

Arch Coal, Inc.

592,400

43,310

Cameco Corp.

158,400

5,890

Chesapeake Energy Corp.

597,500

17,740

Quicksilver Resources, Inc. (a)

203,100

7,377

Range Resources Corp.

162,500

3,889

Ultra Petroleum Corp. (a)

711,600

37,032

Valero Energy Corp.

914,900

49,212

164,450

TOTAL ENERGY

303,894

FINANCIALS - 15.8%

Capital Markets - 1.2%

E*TRADE Financial Corp. (a)

1,436,600

36,748

Common Stocks - continued

Shares

Value (000s)

FINANCIALS - continued

Capital Markets - continued

Merrill Lynch & Co., Inc.

127,500

$9,844

TD Ameritrade Holding Corp.

379,300

8,254

54,846

Commercial Banks - 1.7%

Canadian Western Bank, Edmonton

591,300

19,777

East West Bancorp, Inc.

556,482

20,974

PrivateBancorp, Inc.

771,900

29,278

Wells Fargo & Co.

142,800

9,168

79,197

Consumer Finance - 1.5%

American Express Co.

1,135,800

61,197

SLM Corp.

81,500

4,597

65,794

Insurance - 10.3%

AFLAC, Inc.

121,700

5,629

AMBAC Financial Group, Inc.

364,000

27,355

American International Group, Inc.

2,048,400

135,932

Aon Corp.

1,578,900

62,540

Aspen Insurance Holdings Ltd.

352,100

8,172

Axis Capital Holdings Ltd.

639,900

19,811

Everest Re Group Ltd.

353,200

34,981

Markel Corp. (a)

27,800

9,134

National Financial Partners Corp.

161,400

9,498

Navigators Group, Inc. (a)

209,045

9,804

PartnerRe Ltd.

509,400

30,875

Platinum Underwriters Holdings Ltd.

296,500

9,079

Prudential Financial, Inc.

600,200

46,239

RLI Corp.

241,500

12,732

White Mountains Insurance Group Ltd.

18,300

10,102

Willis Group Holdings Ltd.

244,700

8,427

XL Capital Ltd. Class A

418,400

28,263

468,573

Real Estate - 1.1%

CapitalSource, Inc. (d)

2,026,828

49,880

TOTAL FINANCIALS

718,290

Common Stocks - continued

Shares

Value (000s)

HEALTH CARE - 15.4%

Biotechnology - 3.1%

Altus Pharmaceuticals, Inc.

283,300

$5,949

Biogen Idec, Inc. (a)

1,331,768

62,926

Invitrogen Corp. (a)

496,800

35,238

Myogen, Inc. (a)

575,700

21,819

Renovis, Inc. (a)

240,600

5,211

Serologicals Corp. (a)

254,700

6,161

Theravance, Inc. (a)

176,900

4,964

142,268

Health Care Equipment & Supplies - 4.1%

Alcon, Inc.

77,800

8,959

Bausch & Lomb, Inc.

53,300

3,689

Baxter International, Inc.

657,700

24,894

Becton, Dickinson & Co.

319,500

20,400

DENTSPLY International, Inc.

388,600

22,146

Fisher Scientific International, Inc. (a)

138,700

9,454

Intuitive Surgical, Inc. (a)

36,200

3,265

Kinetic Concepts, Inc. (a)

455,800

16,910

Mentor Corp.

87,700

3,775

Nobel Biocare Holding AG (Switzerland)

99,483

22,218

ResMed, Inc. (a)

290,300

11,783

Respironics, Inc. (a)

570,700

20,751

SonoSite, Inc. (a)

127,122

5,131

St. Jude Medical, Inc. (a)

179,800

8,199

Sybron Dental Specialties, Inc. (a)

100,300

3,837

185,411

Health Care Providers & Services - 5.0%

American Retirement Corp. (a)

346,800

9,336

Covance, Inc. (a)

90,600

5,114

Henry Schein, Inc. (a)

1,723,800

80,415

Sunrise Senior Living, Inc. (a)

387,800

13,751

UnitedHealth Group, Inc.

2,085,100

121,415

230,031

Pharmaceuticals - 3.2%

Allergan, Inc.

172,000

18,621

Johnson & Johnson

874,600

50,421

Novartis AG sponsored ADR (d)

401,400

21,375

Common Stocks - continued

Shares

Value (000s)

HEALTH CARE - continued

Pharmaceuticals - continued

ViroPharma, Inc. (a)

808,800

$15,650

Wyeth

778,660

38,777

144,844

TOTAL HEALTH CARE

702,554

INDUSTRIALS - 11.0%

Aerospace & Defense - 0.5%

Rockwell Collins, Inc.

464,700

24,699

Air Freight & Logistics - 0.4%

Forward Air Corp.

473,055

16,784

UTI Worldwide, Inc.

13,800

1,444

18,228

Airlines - 1.0%

Ryanair Holdings PLC sponsored ADR (a)(d)

872,000

46,294

Commercial Services & Supplies - 2.0%

Avery Dennison Corp. (d)

384,931

23,096

Huron Consulting Group, Inc. (a)

369,400

10,136

Monster Worldwide, Inc. (a)

654,581

32,048

Navigant Consulting, Inc. (a)

1,269,400

24,741

Ritchie Brothers Auctioneers, Inc.

65,300

3,117

93,138

Construction & Engineering - 1.7%

Fluor Corp.

298,500

25,761

Jacobs Engineering Group, Inc. (a)

595,900

51,092

76,853

Electrical Equipment - 0.1%

Roper Industries, Inc.

116,000

5,228

Industrial Conglomerates - 1.6%

3M Co.

965,800

71,073

Machinery - 2.1%

A.S.V., Inc. (a)(d)

151,100

4,862

Bucyrus International, Inc. Class A

216,780

13,653

Danaher Corp.

443,972

26,896

Gardner Denver, Inc. (a)

118,373

7,263

Joy Global, Inc.

788,163

40,638

93,312

Common Stocks - continued

Shares

Value (000s)

INDUSTRIALS - continued

Trading Companies & Distributors - 1.6%

Fastenal Co.

385,600

$16,932

MSC Industrial Direct Co., Inc. Class A

408,500

19,351

WESCO International, Inc. (a)

664,250

38,075

74,358

TOTAL INDUSTRIALS

503,183

INFORMATION TECHNOLOGY - 26.3%

Communications Equipment - 1.9%

Comverse Technology, Inc. (a)

1,038,620

29,871

Nice Systems Ltd. sponsored ADR (a)

134,800

7,018

QUALCOMM, Inc.

1,017,200

48,022

84,911

Computers & Peripherals - 3.1%

Intermec, Inc. (a)

915,783

28,096

Seagate Technology

4,246,537

112,830

140,926

Electronic Equipment & Instruments - 0.8%

Agilent Technologies, Inc. (a)

1,052,100

37,876

Internet Software & Services - 5.0%

Digitas, Inc. (a)

162,300

2,293

eBay, Inc. (a)

927,100

37,140

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

329,460

119,469

Traffic.com, Inc.

82,200

882

VeriSign, Inc. (a)

2,197,900

52,002

Yahoo!, Inc. (a)

547,340

17,548

229,334

IT Services - 4.9%

First Data Corp.

1,450,900

65,479

Infosys Technologies Ltd.

1,412,236

90,235

Paychex, Inc.

606,900

24,306

RightNow Technologies, Inc. (a)(d)

242,600

4,000

Satyam Computer Services Ltd.

2,309,075

40,140

224,160

Semiconductors & Semiconductor Equipment - 4.2%

Applied Materials, Inc.

717,300

13,155

ASML Holding NV (NY Shares) (a)

636,500

13,163

Maxim Integrated Products, Inc.

636,000

24,861

Common Stocks - continued

Shares

Value (000s)

INFORMATION TECHNOLOGY - continued

Semiconductors & Semiconductor Equipment - continued

MEMC Electronic Materials, Inc. (a)

2,561,900

$85,798

Microchip Technology, Inc.

316,500

11,141

Q-Cells AG

113,800

11,560

Saifun Semiconductors Ltd.

234,200

6,956

SiRF Technology Holdings, Inc. (a)

621,329

23,256

189,890

Software - 6.4%

Blackbaud, Inc.

128,400

2,350

Macrovision Corp. (a)

927,400

18,743

Microsoft Corp.

7,948,300

213,810

NAVTEQ Corp. (a)

748,600

34,668

Red Hat, Inc. (a)

147,042

3,951

Verint Systems, Inc. (a)

210,945

7,643

Wind River Systems, Inc. (a)

696,556

10,776

291,941

TOTAL INFORMATION TECHNOLOGY

1,199,038

MATERIALS - 4.9%

Chemicals - 1.3%

Ecolab, Inc.

135,900

4,918

Monsanto Co.

202,500

16,986

Praxair, Inc.

693,110

37,414

59,318

Metals & Mining - 3.6%

BHP Billiton Ltd. sponsored ADR

1,629,000

58,791

Carpenter Technology Corp.

498,100

41,636

Compass Minerals International, Inc.

514,900

12,847

Mittal Steel Co. NV Class A (NY Shares) (d)

1,499,500

49,663

162,937

TOTAL MATERIALS

222,255

TELECOMMUNICATION SERVICES - 2.1%

Diversified Telecommunication Services - 0.1%

Qwest Communications International, Inc. (a)

828,700

5,237

Wireless Telecommunication Services - 2.0%

America Movil SA de CV Series L sponsored ADR

1,387,200

48,177

Common Stocks - continued

Shares

Value (000s)

TELECOMMUNICATION SERVICES - continued

Wireless Telecommunication Services - continued

American Tower Corp. Class A (a)

500,600

$15,934

Sprint Nextel Corp.

1,186,700

28,516

92,627

TOTAL TELECOMMUNICATION SERVICES

97,864

TOTAL COMMON STOCKS

(Cost $3,839,281)

4,433,156

Convertible Preferred Stocks - 0.0%

INFORMATION TECHNOLOGY - 0.0%

Communications Equipment - 0.0%

Chorum Technologies, Inc. Series E (a)(f)

41,400

0

TOTAL CONVERTIBLE PREFERRED STOCKS

(Cost $621)

0

U.S. Treasury Obligations - 0.2%

Principal Amount (000s)

U.S. Treasury Bills, yield at date of purchase 3.9% 3/9/06
(Cost $7,593)

$7,600

7,593

Money Market Funds - 5.4%

Shares

Fidelity Cash Central Fund, 4.57% (b)

127,772,115

127,772

Fidelity Securities Lending Cash Central Fund, 4.58% (b)(c)

120,304,150

120,304

TOTAL MONEY MARKET FUNDS

(Cost $248,076)

248,076

TOTAL INVESTMENT PORTFOLIO - 102.9%

(Cost $4,095,571)

4,688,825

NET OTHER ASSETS - (2.9)%

(130,509)

NET ASSETS - 100%

$4,558,316

Legend

(a)Non-income producing

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

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

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

(e)Affiliated company

(f)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 $0 or 0.0% of net assets.

Additional information on each holding is as follows:

Security

Acquisition Date

Acquisition Cost (000s)

Chorum Technologies, Inc. Series E

9/19/00

$621

Affiliated Central Funds

Information regarding fiscal year to date income earned by the fund from the affiliated Central funds is as follows:

Fund

Income earned
(Amounts in thousands)

Fidelity Cash Central Fund

$1,529

Fidelity Securities Lending Cash Central Fund

345

Total

$1,874

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

Ruth's Chris Steak House, Inc.

$16,823

$13,394

$-

$-

$33,642

Income Tax Information

At February 28, 2006, the aggregate cost of investment securities for income tax purposes was $4,098,027,000. Net unrealized appreciation aggregated $590,798,000, of which $682,950,000 related to appreciated investment securities and $92,152,000 related to depreciated investment securities.

Investment Valuation

Investments are valued as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Security transactions are accounted for as of trade date. 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. Investments in open-end mutual 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. The frequency of when fair value pricing is used is unpredictable. The value of securities used under fair value pricing may differ from published prices for the same securities.

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

Quarterly Report

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

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

Quarterly Report

Quarterly Holdings Report

for

Fidelity ® Equity Income II Fund

February 28, 2006

EII-QTLY-0406

1.797940.102

Investments February 28, 2006 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 98.5%

Shares

Value (000s)

CONSUMER DISCRETIONARY - 9.6%

Auto Components - 1.4%

Johnson Controls, Inc.

1,768,400

$126,034

Magna International, Inc. Class A

572,100

42,675

168,709

Automobiles - 1.1%

Monaco Coach Corp. (d)(e)

1,737,725

24,867

Toyota Motor Corp. sponsored ADR

935,300

99,956

Winnebago Industries, Inc.

97,000

3,116

127,939

Hotels, Restaurants & Leisure - 1.3%

International Game Technology

290,900

10,405

Marriott International, Inc. Class A

218,200

14,925

Royal Caribbean Cruises Ltd.

1,599,900

70,492

Starwood Hotels & Resorts Worldwide, Inc. unit

460,600

29,248

Wynn Resorts Ltd. (a)

506,500

33,657

158,727

Household Durables - 0.6%

Matsushita Electric Industrial Co. Ltd. ADR

2,570,800

54,270

Sony Corp. sponsored ADR

533,200

24,996

79,266

Media - 3.9%

CBS Corp. Class B

824,200

20,160

Gannett Co., Inc.

2,328,800

144,758

News Corp. Class B (d)

2,963,600

50,826

Omnicom Group, Inc.

727,300

58,053

The New York Times Co. Class A (d)

4,738,110

133,709

The Walt Disney Co.

2,159,200

60,436

467,942

Multiline Retail - 0.5%

Dollar General Corp.

3,609,300

62,874

Specialty Retail - 0.7%

Best Buy Co., Inc.

339,300

18,275

Staples, Inc.

954,000

23,411

TJX Companies, Inc.

1,745,200

42,740

84,426

Common Stocks - continued

Shares

Value (000s)

CONSUMER DISCRETIONARY - continued

Textiles, Apparel & Luxury Goods - 0.1%

VF Corp.

213,100

$11,678

TOTAL CONSUMER DISCRETIONARY

1,161,561

CONSUMER STAPLES - 7.5%

Beverages - 0.9%

Diageo PLC sponsored ADR

310,300

19,146

The Coca-Cola Co.

2,243,800

94,172

113,318

Food & Staples Retailing - 4.0%

CVS Corp.

1,470,600

41,662

Wal-Mart Stores, Inc.

9,771,500

443,235

484,897

Food Products - 1.1%

Archer-Daniels-Midland Co.

387,800

12,301

Kellogg Co.

387,800

17,183

Nestle SA sponsored ADR

701,800

51,723

Sara Lee Corp.

2,084,500

36,833

Unilever NV (NY Shares)

193,900

13,494

131,534

Household Products - 0.4%

Colgate-Palmolive Co.

242,400

13,206

Procter & Gamble Co.

533,300

31,961

45,167

Personal Products - 0.1%

Avon Products, Inc.

581,700

16,782

Tobacco - 1.0%

Altria Group, Inc.

1,611,200

115,845

TOTAL CONSUMER STAPLES

907,543

ENERGY - 9.4%

Oil, Gas & Consumable Fuels - 9.4%

Amerada Hess Corp.

809,100

111,907

Canadian Natural Resources Ltd.

1,973,800

107,867

ConocoPhillips

1,187,800

72,408

El Paso Corp.

1,842,200

24,096

Exxon Mobil Corp.

10,222,700

606,920

Occidental Petroleum Corp.

533,300

48,818

Common Stocks - continued

Shares

Value (000s)

ENERGY - continued

Oil, Gas & Consumable Fuels - continued

Peabody Energy Corp.

1,403,400

$67,742

Talisman Energy, Inc.

1,987,600

104,458

1,144,216

FINANCIALS - 35.9%

Capital Markets - 6.5%

American Capital Strategies Ltd.

758,000

27,061

Ameriprise Financial, Inc.

581,800

26,460

Investors Financial Services Corp.

836,697

37,743

Lehman Brothers Holdings, Inc.

282,200

41,187

Mellon Financial Corp.

339,400

12,249

Merrill Lynch & Co., Inc.

3,285,500

253,673

Nomura Holdings, Inc. sponsored ADR

2,725,400

52,573

Northern Trust Corp.

2,813,700

148,338

Nuveen Investments, Inc. Class A

989,800

47,679

State Street Corp.

2,362,800

147,628

794,591

Commercial Banks - 6.8%

Bank of America Corp.

6,220,000

285,187

Cathay General Bancorp

606,713

21,617

East West Bancorp, Inc.

2,298,870

86,644

KeyCorp

1,139,200

42,458

Mitsubishi UFJ Financial Group, Inc. sponsored ADR

4,251,800

63,352

Popular, Inc.

25,745

526

UCBH Holdings, Inc.

2,757,344

49,356

Wachovia Corp.

2,728,057

152,962

Wells Fargo & Co.

1,378,400

88,493

Wilmington Trust Corp., Delaware

727,400

31,140

821,735

Consumer Finance - 2.2%

Capital One Financial Corp.

591,500

51,815

SLM Corp.

3,852,600

217,325

269,140

Diversified Financial Services - 3.3%

Citigroup, Inc.

8,511,177

394,663

NETeller PLC (a)

446,000

5,883

400,546

Insurance - 7.0%

Allstate Corp.

392,000

21,474

Common Stocks - continued

Shares

Value (000s)

FINANCIALS - continued

Insurance - continued

American International Group, Inc.

7,162,180

$475,282

Aspen Insurance Holdings Ltd.

679,200

15,764

Genworth Financial, Inc. Class A (non-vtg.)

931,400

29,637

Hartford Financial Services Group, Inc.

733,200

60,401

Marsh & McLennan Companies, Inc.

1,018,900

31,494

MetLife, Inc. unit

1,378,100

37,912

Prudential Financial, Inc.

1,137,500

87,633

RenaissanceRe Holdings Ltd.

319,900

14,252

Swiss Reinsurance Co. (Reg.)

269,954

19,229

Willis Group Holdings Ltd.

245,100

8,441

XL Capital Ltd. Class A

632,700

42,739

844,258

Real Estate - 4.5%

CapitalSource, Inc. (d)

703,629

17,316

Equity Lifestyle Properties, Inc.

714,671

34,083

Equity Residential (SBI)

478,400

21,662

General Growth Properties, Inc.

7,751,026

390,574

Macquarie Goodman Group unit

1,865,723

6,995

Mitsui Fudosan Co. Ltd.

409,000

8,466

The Mills Corp.

1,260,400

49,824

United Dominion Realty Trust, Inc. (SBI)

820,400

21,946

550,866

Thrifts & Mortgage Finance - 5.6%

Fannie Mae

4,232,524

231,434

Freddie Mac

3,249,900

219,011

Golden West Financial Corp., Delaware

2,543,700

180,679

Hudson City Bancorp, Inc.

4,071,600

52,564

683,688

TOTAL FINANCIALS

4,364,824

HEALTH CARE - 10.0%

Biotechnology - 0.5%

Amylin Pharmaceuticals, Inc. (a)

782,700

33,954

Biogen Idec, Inc. (a)

636,200

30,060

64,014

Common Stocks - continued

Shares

Value (000s)

HEALTH CARE - continued

Health Care Equipment & Supplies - 1.3%

Becton, Dickinson & Co.

1,711,700

$109,292

Hospira, Inc. (a)

1,119,300

44,436

153,728

Health Care Providers & Services - 1.9%

Aetna, Inc.

731,400

37,301

Brookdale Senior Living, Inc.

97,000

3,212

Cardinal Health, Inc.

1,430,600

103,862

Healthspring, Inc.

290,000

6,844

Omnicare, Inc.

690,900

42,041

UnitedHealth Group, Inc.

711,100

41,407

234,667

Pharmaceuticals - 6.3%

Forest Laboratories, Inc. (a)

145,500

6,678

Johnson & Johnson

1,593,300

91,854

Merck & Co., Inc.

3,102,400

108,150

Mylan Laboratories, Inc.

775,700

17,841

Pfizer, Inc.

9,638,890

252,443

Roche Holding AG sponsored ADR (d)

184,000

13,524

Wyeth

5,544,400

276,111

766,601

TOTAL HEALTH CARE

1,219,010

INDUSTRIALS - 9.5%

Aerospace & Defense - 0.9%

Raytheon Co.

727,200

31,560

Rockwell Collins, Inc.

242,400

12,884

United Technologies Corp.

1,016,800

59,483

103,927

Air Freight & Logistics - 0.2%

UTI Worldwide, Inc.

203,623

21,305

Airlines - 0.7%

AirTran Holdings, Inc. (a)

2,485,300

44,189

UAL Corp. (a)

1,211,967

42,988

87,177

Commercial Services & Supplies - 0.3%

Avery Dennison Corp.

581,800

34,908

Common Stocks - continued

Shares

Value (000s)

INDUSTRIALS - continued

Electrical Equipment - 0.7%

Rockwell Automation, Inc.

1,154,600

$78,709

Industrial Conglomerates - 1.3%

General Electric Co.

4,872,910

160,173

Machinery - 1.4%

Crane Co.

484,000

18,629

Dover Corp.

484,800

23,241

Eaton Corp.

1,417,400

98,750

Illinois Tool Works, Inc.

402,800

34,576

175,196

Road & Rail - 3.9%

Burlington Northern Santa Fe Corp.

2,586,200

203,379

Canadian National Railway Co.

936,000

43,828

Laidlaw International, Inc.

1,439,373

39,727

Norfolk Southern Corp.

3,303,714

169,084

Union Pacific Corp.

242,400

21,465

477,483

Transportation Infrastructure - 0.1%

Grupo Aeroportuario del Pacifico SA de CV sponsored ADR

349,500

10,066

TOTAL INDUSTRIALS

1,148,944

INFORMATION TECHNOLOGY - 7.7%

Communications Equipment - 0.6%

Cisco Systems, Inc. (a)

1,623,200

32,854

Lucent Technologies, Inc. (a)

5,623,900

15,747

Nortel Networks Corp. (a)

7,368,600

21,074

69,675

Computers & Peripherals - 2.7%

EMC Corp. (a)

1,493,300

20,936

Hewlett-Packard Co.

5,096,100

167,203

NCR Corp. (a)

2,230,300

89,413

Sun Microsystems, Inc. (a)

13,525,300

56,401

333,953

Electronic Equipment & Instruments - 1.0%

Avnet, Inc. (a)

4,167,500

104,729

Symbol Technologies, Inc.

1,424,400

16,552

121,281

Common Stocks - continued

Shares

Value (000s)

INFORMATION TECHNOLOGY - continued

IT Services - 0.2%

Automatic Data Processing, Inc.

450,800

$20,822

Semiconductors & Semiconductor Equipment - 2.5%

Advanced Micro Devices, Inc. (a)

1,276,700

49,370

Entegris, Inc. (a)

1,357,495

14,199

FormFactor, Inc. (a)

288,000

10,610

KLA-Tencor Corp.

1,453,000

75,890

Lam Research Corp. (a)

657,600

28,343

Microchip Technology, Inc.

290,900

10,240

MKS Instruments, Inc. (a)(e)

3,588,800

80,246

National Semiconductor Corp.

1,298,600

36,426

305,324

Software - 0.7%

Hyperion Solutions Corp. (a)

1,357,500

45,544

Microsoft Corp.

1,406,140

37,825

83,369

TOTAL INFORMATION TECHNOLOGY

934,424

MATERIALS - 3.8%

Chemicals - 1.7%

Airgas, Inc.

751,500

27,347

Bayer AG sponsored ADR

512,500

20,623

FMC Corp. (a)(e)

1,943,200

118,166

Koppers Holdings, Inc.

313,680

5,929

Praxair, Inc.

335,700

18,121

Sigma Aldrich Corp.

299,001

19,259

209,445

Containers & Packaging - 0.4%

Ball Corp.

1,185,200

50,490

Metals & Mining - 1.7%

Alcan, Inc.

339,400

14,817

Alcoa, Inc.

1,212,000

35,536

Mittal Steel Co. NV Class A (NY Shares)

387,800

12,844

Newmont Mining Corp.

1,134,500

60,038

United States Steel Corp. (d)

1,405,814

76,617

199,852

TOTAL MATERIALS

459,787

Common Stocks - continued

Shares

Value (000s)

TELECOMMUNICATION SERVICES - 4.2%

Diversified Telecommunication Services - 3.7%

AT&T, Inc.

8,241,200

$227,375

BellSouth Corp.

4,063,700

128,332

Qwest Communications International, Inc. (a)

6,984,400

44,141

Verizon Communications, Inc.

1,555,370

52,416

452,264

Wireless Telecommunication Services - 0.5%

Sprint Nextel Corp.

2,466,400

59,268

TOTAL TELECOMMUNICATION SERVICES

511,532

UTILITIES - 0.9%

Electric Utilities - 0.5%

E.ON AG sponsored ADR

833,800

30,884

Exelon Corp.

564,200

32,221

63,105

Independent Power Producers & Energy Traders - 0.2%

Dynegy, Inc. Class A (a)

1,551,600

8,394

Mirant Corp. (a)

581,700

14,310

22,704

Multi-Utilities - 0.2%

Public Service Enterprise Group, Inc.

429,400

29,796

TOTAL UTILITIES

115,605

TOTAL COMMON STOCKS

(Cost $10,424,899)

11,967,446

Convertible Preferred Stocks - 0.2%

FINANCIALS - 0.1%

Insurance - 0.1%

Platinum Underwriters Holdings Ltd. Series A, 6.00%

152,200

4,633

UTILITIES - 0.1%

Electric Utilities - 0.1%

Entergy Corp. 7.625%

307,600

15,918

TOTAL CONVERTIBLE PREFERRED STOCKS

(Cost $20,057)

20,551

Convertible Bonds - 0.3%

Principal Amount (000s)

Value (000s)

INDUSTRIALS - 0.2%

Airlines - 0.2%

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

$3,230

$5,939

America West Holding Corp. 7.5% 1/18/09

8,830

10,441

Continental Airlines, Inc. 4.5% 2/1/07

9,710

9,462

25,842

INFORMATION TECHNOLOGY - 0.1%

Semiconductors & Semiconductor Equipment - 0.1%

ASM International NV:

4.25% 12/6/11 (f)

5,740

5,869

4.25% 12/6/11

2,910

3,008

8,877

TOTAL CONVERTIBLE BONDS

(Cost $29,923)

34,719

Money Market Funds - 1.4%

Shares

Fidelity Cash Central Fund, 4.57% (b)

27,645,923

27,646

Fidelity Securities Lending Cash Central Fund, 4.58% (b)(c)

142,652,950

142,653

TOTAL MONEY MARKET FUNDS

(Cost $170,299)

170,299

TOTAL INVESTMENT PORTFOLIO - 100.4%

(Cost $10,645,178)

12,193,015

NET OTHER ASSETS - (0.4)%

(51,817)

NET ASSETS - 100%

$12,141,198

Legend

(a)Non-income producing

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

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

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

(e)Affiliated company

(f)Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the period end, the value of these securities amounted to $5,869,000 or 0.0% of net assets.

Affiliated Central Funds

Information regarding fiscal year to date income earned by the fund from the affiliated Central funds is as follows:

Fund

Income earned
(Amounts in thousands)

Fidelity Cash Central Fund

$379

Fidelity Securities Lending Cash Central Fund

162

Total

$541

Other Affiliated Issuers

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

Affiliates
(Amounts in thousands)

Value, beginning of period

Purchases

Sales Proceeds

Dividend Income

Value,
end of
period

FMC Corp.

$99,205

$4,424

$-

$-

$118,166

MKS Instruments, Inc.

67,721

-

-

-

80,246

Monaco Coach Corp.

25,770

-

-

104

24,867

Total

$192,696

$4,424

$-

$104

$223,279

Income Tax Information

At February 28, 2006, the aggregate cost of investment securities for income tax purposes was $10,679,251,000. Net unrealized appreciation aggregated $1,513,764,000, of which $1,698,417,000 related to appreciated investment securities and $184,653,000 related to depreciated investment securities.

Investment Valuation

Investments are valued as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Security transactions are accounted for as of trade date. 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 yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. Investments in open-end mutual funds, including 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. The frequency of when fair value pricing is used is unpredictable. The value of securities used under fair value pricing may differ from published prices for the same securities.

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

Quarterly Report

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

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

Quarterly Report

Quarterly Holdings Report

for

Fidelity ® Advisor Strategic
Dividend & Income Fund
Class A
Class T
Class B
Class C
Institutional Class

February 28, 2006

ASDI-QTLY-0406

1.814340.101

Investments February 28, 2006 (Unaudited)

Showing Percentage of Net Assets

Corporate Bonds - 12.7%

Principal Amount

Value

Convertible Bonds - 12.4%

CONSUMER DISCRETIONARY - 2.4%

Hotels, Restaurants & Leisure - 1.4%

Carnival Corp. 1.132% 4/29/33 (d)

$5,820,000

$4,331,651

Kerzner International Ltd. 2.375% 4/15/24

4,660,000

5,914,472

Six Flags, Inc. 4.5% 5/15/15

3,300,000

5,855,520

16,101,643

Media - 1.0%

Charter Communications, Inc.:

5.875% 11/16/09 (f)

700,000

501,333

5.875% 11/16/09

10,160,000

7,276,490

XM Satellite Radio Holdings, Inc. 1.75% 12/1/09

580,000

468,292

XM Satellite Radio, Inc. 1.75% 12/1/09 (f)

3,300,000

2,664,420

10,910,535

TOTAL CONSUMER DISCRETIONARY

27,012,178

CONSUMER STAPLES - 0.1%

Food & Staples Retailing - 0.1%

Nash-Finch Co. 1.6314% 3/15/35 (d)

1,520,000

619,081

ENERGY - 1.5%

Energy Equipment & Services - 0.7%

Halliburton Co. 3.125% 7/15/23

4,260,000

7,941,364

Oil, Gas & Consumable Fuels - 0.8%

Chesapeake Energy Corp. 2.75% 11/15/35 (f)

5,000,000

5,237,500

McMoRan Exploration Co. 6% 7/2/08

3,000,000

3,950,040

9,187,540

TOTAL ENERGY

17,128,904

FINANCIALS - 0.6%

Consumer Finance - 0.6%

American Express Co.:

1.85% 12/1/33 (d)(f)

1,800,000

1,949,580

1.85% 12/1/33 (d)

3,850,000

4,169,935

6,119,515

HEALTH CARE - 2.7%

Biotechnology - 1.0%

Amgen, Inc. 0.375% 2/1/13 (f)

5,000,000

5,203,250

Corporate Bonds - continued

Principal Amount

Value

Convertible Bonds - continued

HEALTH CARE - continued

Biotechnology - continued

Protein Design Labs, Inc. 2% 2/15/12 (f)

$1,540,000

$2,193,730

Serologicals Corp.:

4.75% 8/15/33 (f)

770,000

1,317,855

4.75% 8/15/33

1,500,000

2,567,250

11,282,085

Health Care Equipment & Supplies - 1.7%

Bausch & Lomb, Inc. 4.704% 8/1/23 (h)

3,640,000

4,966,598

Cytyc Corp. 2.25% 3/15/24

2,470,000

2,747,875

Fisher Scientific International, Inc.:

2.5% 10/1/23 (f)

995,000

1,513,992

2.5% 10/1/23

2,400,000

3,651,840

Medtronic, Inc. 1.25% 9/15/21

5,480,000

5,474,520

18,354,825

TOTAL HEALTH CARE

29,636,910

INDUSTRIALS - 1.6%

Aerospace & Defense - 0.1%

AAR Corp. 1.75% 2/1/26 (f)

1,000,000

1,051,690

Airlines - 0.2%

US Airways Group, Inc. 7% 9/30/20 (f)

1,140,000

1,819,087

Commercial Services & Supplies - 0.1%

FTI Consulting, Inc. 3.75% 7/15/12 (f)

1,000,000

1,143,800

Electrical Equipment - 0.1%

GrafTech International Ltd. 1.625% 1/15/24

2,180,000

1,569,600

Industrial Conglomerates - 0.6%

Tyco International Group SA yankee 3.125% 1/15/23

5,310,000

6,597,675

Marine - 0.5%

OMI Corp. 2.875% 12/1/24

6,300,000

5,599,440

TOTAL INDUSTRIALS

17,781,292

INFORMATION TECHNOLOGY - 3.5%

Communications Equipment - 0.6%

Comverse Technology, Inc. 0% 5/15/23

2,000,000

3,230,000

Corporate Bonds - continued

Principal Amount

Value

Convertible Bonds - continued

INFORMATION TECHNOLOGY - continued

Communications Equipment - continued

Finisar Corp. 2.5% 10/15/10

$1,430,000

$1,438,938

Juniper Networks, Inc. 0% 6/15/08

2,260,000

2,414,584

7,083,522

Computers & Peripherals - 0.2%

Maxtor Corp. 6.8% 4/30/10

1,510,000

1,704,639

Electronic Equipment & Instruments - 1.1%

Flextronics International Ltd. 1% 8/1/10

6,420,000

5,994,996

Vishay Intertechnology, Inc. 3.625% 8/1/23

6,560,000

6,557,376

12,552,372

Internet Software & Services - 0.4%

aQuantive, Inc. 2.25% 8/15/24

1,800,000

3,831,750

IT Services - 0.5%

DST Systems, Inc.:

Series A, 4.125% 8/15/23 (f)

1,240,000

1,567,360

4.125% 8/15/23

3,470,000

4,386,080

5,953,440

Semiconductors & Semiconductor Equipment - 0.7%

EMCORE Corp. 5% 5/15/11

1,000,000

1,096,250

ON Semiconductor Corp.:

0% 4/15/24

6,500,000

5,655,000

1.875% 12/15/25 (f)

1,250,000

1,405,488

8,156,738

TOTAL INFORMATION TECHNOLOGY

39,282,461

TOTAL CONVERTIBLE BONDS

137,580,341

Nonconvertible Bonds - 0.3%

FINANCIALS - 0.3%

Diversified Financial Services - 0.1%

Wachovia Capital Trust III 5.8% (h)

2,000,000

1,988,688

Corporate Bonds - continued

Principal Amount

Value

Nonconvertible Bonds - continued

FINANCIALS - continued

Thrifts & Mortgage Finance - 0.2%

Washington Mutual Preferred Funding Trust I 6.534% (f)(g)(h)

$2,000,000

$2,001,760

TOTAL FINANCIALS

3,990,448

TOTAL CORPORATE BONDS

(Cost $135,292,387)

141,570,789

Common Stocks - 70.0%

Shares

CONSUMER DISCRETIONARY - 7.3%

Auto Components - 0.1%

Gentex Corp.

55,000

916,300

Automobiles - 0.3%

Ford Motor Co.

200,000

1,594,000

General Motors Corp. (e)

38,000

771,780

Hyundai Motor Co.

7,000

593,681

2,959,461

Diversified Consumer Services - 0.4%

Apollo Group, Inc. Class A (a)

25,500

1,259,190

Coinmach Service Corp. unit

156,800

2,602,880

Service Corp. International (SCI)

143,000

1,136,850

4,998,920

Hotels, Restaurants & Leisure - 1.3%

Centerplate, Inc. unit

318,800

4,138,024

Gaylord Entertainment Co. (a)

21,000

937,650

McDonald's Corp.

110,800

3,868,028

Red Robin Gourmet Burgers, Inc. (a)

31,000

1,239,690

Starwood Hotels & Resorts Worldwide, Inc. unit

65,700

4,171,950

14,355,342

Household Durables - 0.4%

D.R. Horton, Inc.

37,000

1,262,070

KB Home

8,500

569,755

Sony Corp. sponsored ADR

63,000

2,953,440

4,785,265

Common Stocks - continued

Shares

Value

CONSUMER DISCRETIONARY - continued

Internet & Catalog Retail - 0.2%

Coldwater Creek, Inc. (a)

60,000

$1,348,200

Expedia, Inc. (a)

23,750

450,538

IAC/InterActiveCorp (a)

17,750

519,010

2,317,748

Leisure Equipment & Products - 0.7%

Eastman Kodak Co.

261,500

7,335,075

Leapfrog Enterprises, Inc. Class A (a)

25,000

291,250

7,626,325

Media - 1.9%

CBS Corp. Class B

53,565

1,310,200

Clear Channel Communications, Inc.

25,500

721,650

Clear Channel Outdoor Holding, Inc. Class A

40,000

873,600

Gannett Co., Inc.

15,000

932,400

Lamar Advertising Co. Class A (a)

60,000

3,061,200

Live Nation, Inc. (a)

6,450

115,133

Media General, Inc. Class A

28,000

1,402,800

News Corp. Class A

52,400

853,072

Omnicom Group, Inc.

7,000

558,740

The Walt Disney Co.

146,700

4,106,133

Time Warner, Inc.

170,900

2,958,279

Univision Communications, Inc. Class A (a)

108,500

3,629,325

Viacom, Inc. Class B (non-vtg.)

11,565

462,137

20,984,669

Multiline Retail - 0.6%

99 Cents Only Stores (a)

70,000

796,600

Federated Department Stores, Inc.

58,000

4,120,320

KarstadtQuelle AG (a)(e)

40,000

979,429

Lotte Shopping Co. Ltd. GDR (a)(f)

46,000

989,000

6,885,349

Specialty Retail - 1.3%

Best Buy Co., Inc.

70,500

3,797,130

Circuit City Stores, Inc.

26,200

629,586

Eddie Bauer Holdings, Inc. (a)

20,000

300,000

Gymboree Corp. (a)

64,000

1,463,040

Home Depot, Inc.

113,100

4,767,165

Maidenform Brands, Inc.

3,500

33,880

Office Depot, Inc. (a)

10,000

356,800

Staples, Inc.

60,000

1,472,400

Common Stocks - continued

Shares

Value

CONSUMER DISCRETIONARY - continued

Specialty Retail - continued

TJX Companies, Inc.

20,000

$489,800

Urban Outfitters, Inc. (a)

22,000

618,200

13,928,001

Textiles, Apparel & Luxury Goods - 0.1%

Deckers Outdoor Corp. (a)(e)

29,000

983,100

TOTAL CONSUMER DISCRETIONARY

80,740,480

CONSUMER STAPLES - 3.1%

Beverages - 0.4%

Coca-Cola Enterprises, Inc.

55,800

1,096,470

Diageo PLC sponsored ADR

13,000

802,100

PepsiCo, Inc.

11,500

679,765

The Coca-Cola Co.

30,000

1,259,100

3,837,435

Food & Staples Retailing - 0.7%

CVS Corp.

45,000

1,274,850

Kroger Co. (a)

183,000

3,667,320

Safeway, Inc.

48,600

1,181,466

Wal-Mart Stores, Inc.

46,500

2,109,240

8,232,876

Food Products - 0.4%

B&G Foods, Inc. unit

156,900

2,351,931

McCormick & Co., Inc. (non-vtg.)

32,000

1,050,560

Nestle SA (Reg.)

4,000

1,176,112

4,578,603

Household Products - 0.6%

Colgate-Palmolive Co.

118,000

6,428,640

Personal Products - 0.2%

Avon Products, Inc.

94,000

2,711,900

Tobacco - 0.8%

Altria Group, Inc.

121,300

8,721,470

TOTAL CONSUMER STAPLES

34,510,924

ENERGY - 7.2%

Energy Equipment & Services - 2.7%

BJ Services Co.

111,800

3,500,458

FMC Technologies, Inc. (a)

27,000

1,266,840

Common Stocks - continued

Shares

Value

ENERGY - continued

Energy Equipment & Services - continued

GlobalSantaFe Corp.

36,800

$2,036,512

Halliburton Co.

113,200

7,697,600

National Oilwell Varco, Inc. (a)

102,514

6,241,052

Pride International, Inc. (a)

97,300

3,013,381

Schlumberger Ltd. (NY Shares)

35,000

4,025,000

Smith International, Inc.

63,000

2,439,990

30,220,833

Oil, Gas & Consumable Fuels - 4.5%

Amerada Hess Corp.

15,000

2,074,650

Apache Corp.

18,400

1,231,328

Chevron Corp.

104,100

5,879,568

ConocoPhillips

32,400

1,975,104

CONSOL Energy, Inc.

9,000

576,180

El Paso Corp.

177,000

2,315,160

Exxon Mobil Corp.

242,300

14,385,351

Houston Exploration Co. (a)

30,000

1,735,200

International Coal Group, Inc. (a)

47,500

406,125

Massey Energy Co.

30,000

1,116,000

Occidental Petroleum Corp.

22,300

2,041,342

OMI Corp.

50,000

875,000

Overseas Shipholding Group, Inc.

12,000

606,840

Quicksilver Resources, Inc. (a)

76,450

2,776,664

Teekay Shipping Corp.

142,050

5,525,745

Ultra Petroleum Corp. (a)

11,000

572,440

USEC, Inc.

25,000

311,000

Valero Energy Corp.

70,000

3,765,300

XTO Energy, Inc.

43,000

1,801,270

49,970,267

TOTAL ENERGY

80,191,100

FINANCIALS - 25.3%

Capital Markets - 3.2%

Bear Stearns Companies, Inc.

8,200

1,102,408

Charles Schwab Corp.

107,000

1,734,470

Investors Financial Services Corp.

26,000

1,172,860

Lehman Brothers Holdings, Inc.

14,800

2,160,060

Merrill Lynch & Co., Inc.

81,600

6,300,336

Merrill Lynch & Co., Inc. (depositary shares) Series 1, unit

277,700

7,095,235

Morgan Stanley

82,000

4,892,120

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Capital Markets - continued

Nomura Holdings, Inc.

107,000

$2,064,030

Nuveen Investments, Inc. Class A

20,000

963,400

State Street Corp.

83,000

5,185,840

TradeStation Group, Inc. (a)

89,500

1,421,260

UBS AG (NY Shares)

18,000

1,912,140

36,004,159

Commercial Banks - 2.4%

Banco Bradesco SA (PN) sponsored ADR (non-vtg.) (e)

61,000

2,529,060

Bank of America Corp.

204,914

9,395,307

Kookmin Bank sponsored ADR

14,000

1,060,500

Korea Exchange Bank (a)

130,000

1,857,487

UCBH Holdings, Inc.

68,600

1,227,940

Wachovia Corp.

137,884

7,731,156

Wells Fargo & Co.

40,800

2,619,360

26,420,810

Diversified Financial Services - 1.9%

CBOT Holdings, Inc. Class A

300

35,265

Citigroup, Inc.

161,000

7,465,570

Grubb & Ellis Realty Advisors, Inc. unit

21,300

129,930

IntercontinentalExchange, Inc.

1,400

76,650

JPMorgan Chase & Co.

319,904

13,160,851

20,868,266

Insurance - 5.4%

ACE Ltd.

117,200

6,531,556

American International Group, Inc.

379,000

25,150,437

Aspen Insurance Holdings Ltd.

50,000

1,160,500

Endurance Specialty Holdings Ltd.

18,000

567,000

Hartford Financial Services Group, Inc.

76,000

6,260,880

Hilb Rogal & Hobbs Co.

43,000

1,661,950

Montpelier Re Holdings Ltd.

20,000

344,800

Muenchener Rueckversicherungs-Gesellschaft AG (Reg.)

6,500

881,409

Navigators Group, Inc. (a)

7,000

328,300

PartnerRe Ltd.

61,000

3,697,210

Platinum Underwriters Holdings Ltd.

49,700

1,521,814

Scottish Re Group Ltd.

35,000

875,000

Swiss Reinsurance Co. (Reg.)

12,000

854,758

The St. Paul Travelers Companies, Inc.

60,000

2,578,800

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Insurance - continued

W.R. Berkley Corp.

92,700

$5,366,403

XL Capital Ltd. Class A

33,000

2,229,150

60,009,967

Real Estate - 11.1%

Alexandria Real Estate Equities, Inc.

10,200

897,804

Apartment Investment & Management Co. Class A

21,000

930,510

AvalonBay Communities, Inc.

30,160

3,106,480

Boston Properties, Inc.

63,314

5,360,796

CBL & Associates Properties, Inc.

94,440

4,023,144

CenterPoint Properties Trust (SBI)

19,900

992,015

CentraCore Properties Trust

39,100

1,056,482

Columbia Equity Trust, Inc.

58,300

1,007,424

Developers Diversified Realty Corp.

4,300

215,817

Duke Realty Corp.

127,788

4,485,359

Equity Lifestyle Properties, Inc.

55,760

2,659,194

Equity Office Properties Trust

170,110

5,349,960

Equity Residential (SBI)

155,280

7,031,078

General Growth Properties, Inc.

139,725

7,040,743

GMH Communities Trust

66,600

1,106,892

Healthcare Realty Trust, Inc.

40,400

1,507,324

Heritage Property Investment Trust, Inc.

56,200

2,155,832

Host Marriott Corp.

142,400

2,766,832

Inland Real Estate Corp.

133,140

2,049,025

Innkeepers USA Trust (SBI)

44,400

778,332

Kilroy Realty Corp.

20,620

1,542,788

Kimco Realty Corp.

126,180

4,533,647

MeriStar Hospitality Corp. (a)

142,000

1,464,020

National Health Investors, Inc.

18,900

503,118

National Health Realty, Inc.

12,600

249,480

Newcastle Investment Corp.

25,800

617,136

Pan Pacific Retail Properties, Inc.

44,210

3,059,774

Pennsylvania (REIT) (SBI)

12,300

496,920

Plum Creek Timber Co., Inc.

112,680

4,186,062

Post Properties, Inc.

17,300

768,120

Potlatch Corp.

7,300

266,012

ProLogis Trust

156,765

8,233,298

Public Storage, Inc.

30,140

2,351,523

Ramco-Gershenson Properties Trust (SBI)

23,300

677,098

Rayonier, Inc.

28,320

1,220,592

Reckson Associates Realty Corp.

77,760

3,180,384

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Real Estate - continued

Shurgard Storage Centers, Inc. Class A

8,500

$545,105

Simon Property Group, Inc.

71,210

5,908,294

SL Green Realty Corp.

42,600

3,702,366

Sovran Self Storage, Inc.

33,200

1,726,400

Tanger Factory Outlet Centers, Inc.

55,400

1,789,420

Taubman Centers, Inc.

46,500

1,847,910

The Mills Corp.

40,500

1,600,965

Trizec Properties, Inc.

212,050

5,146,454

United Dominion Realty Trust, Inc. (SBI)

241,320

6,455,310

Ventas, Inc.

120,150

3,724,650

Vornado Realty Trust

36,750

3,270,383

123,588,272

Thrifts & Mortgage Finance - 1.3%

Doral Financial Corp.

87,000

970,920

Fannie Mae

124,400

6,802,192

Freddie Mac

55,900

3,767,101

Golden West Financial Corp., Delaware

17,800

1,264,334

Hudson City Bancorp, Inc.

96,000

1,239,360

W Holding Co., Inc.

24,480

196,819

14,240,726

TOTAL FINANCIALS

281,132,200

HEALTH CARE - 7.4%

Biotechnology - 1.7%

Alkermes, Inc. (a)

12,000

304,920

Alnylam Pharmaceuticals, Inc. (a)

105,000

1,688,400

Amgen, Inc. (a)

8,000

603,920

Biogen Idec, Inc. (a)

48,000

2,268,000

BioMarin Pharmaceutical, Inc. (a)

95,000

1,242,600

Cephalon, Inc. (a)(e)

96,000

7,630,080

Genentech, Inc. (a)

8,250

706,943

Illumina, Inc. (a)

65,400

1,663,122

ImClone Systems, Inc. (a)

40,000

1,535,600

MedImmune, Inc. (a)

35,000

1,277,150

ONYX Pharmaceuticals, Inc. (a)

12,000

342,000

Theravance, Inc. (a)

9,100

255,346

19,518,081

Health Care Equipment & Supplies - 2.2%

Aspect Medical Systems, Inc. (a)

15,000

401,850

Common Stocks - continued

Shares

Value

HEALTH CARE - continued

Health Care Equipment & Supplies - continued

Baxter International, Inc.

212,600

$8,046,910

C.R. Bard, Inc.

15,000

982,350

Cooper Companies, Inc.

8,000

419,760

Dionex Corp. (a)

15,000

823,050

Foxhollow Technologies, Inc. (a)

5,900

156,704

Inverness Medical Innovations, Inc. (a)

50,000

1,324,500

Medtronic, Inc.

38,100

2,055,495

PerkinElmer, Inc.

95,000

2,260,050

Thermo Electron Corp. (a)

114,400

3,960,528

Varian, Inc. (a)

15,000

598,500

Waters Corp. (a)

73,000

3,119,290

24,148,987

Health Care Providers & Services - 0.6%

American Retirement Corp. (a)

11,400

306,888

Community Health Systems, Inc. (a)

20,000

758,400

Emdeon Corp. (a)

75,000

790,500

Healthspring, Inc.

2,100

49,560

McKesson Corp.

16,000

866,080

Psychiatric Solutions, Inc. (a)

27,600

911,628

UnitedHealth Group, Inc.

38,200

2,224,386

WebMD Health Corp. Class A

21,800

810,088

6,717,530

Pharmaceuticals - 2.9%

Allergan, Inc.

11,000

1,190,860

Johnson & Johnson

10,000

576,500

Merck & Co., Inc.

185,000

6,449,100

Pfizer, Inc.

498,000

13,042,620

Schering-Plough Corp.

163,600

3,026,600

Teva Pharmaceutical Industries Ltd. sponsored ADR

39,000

1,637,610

Wyeth

121,800

6,065,640

31,988,930

TOTAL HEALTH CARE

82,373,528

INDUSTRIALS - 8.4%

Aerospace & Defense - 3.3%

Embraer - Empresa Brasileira de Aeronautica SA
sponsored ADR

26,000

1,033,500

General Dynamics Corp.

13,200

1,627,164

Goodrich Corp.

45,000

1,882,800

Common Stocks - continued

Shares

Value

INDUSTRIALS - continued

Aerospace & Defense - continued

Hexcel Corp. (a)

151,000

$3,249,520

Honeywell International, Inc.

591,300

24,213,735

Raytheon Co.

36,300

1,575,420

Rockwell Collins, Inc.

11,000

584,650

United Technologies Corp.

52,000

3,042,000

37,208,789

Air Freight & Logistics - 0.2%

EGL, Inc. (a)

35,000

1,415,750

Expeditors International of Washington, Inc.

11,000

855,690

2,271,440

Airlines - 0.4%

ACE Aviation Holdings, Inc. Class A (a)

28,900

852,132

AirTran Holdings, Inc. (a)

74,000

1,315,720

JetBlue Airways Corp. (a)

55,000

627,000

Southwest Airlines Co.

45,100

756,327

UAL Corp. (a)

13,000

461,110

US Airways Group, Inc. (a)

10,500

347,445

4,359,734

Building Products - 0.1%

Masco Corp.

31,100

970,009

Commercial Services & Supplies - 0.5%

Cendant Corp.

95,000

1,578,900

Robert Half International, Inc.

60,200

2,162,384

The Brink's Co.

32,000

1,567,040

5,308,324

Construction & Engineering - 0.6%

Chicago Bridge & Iron Co. NV (NY Shares)

10,000

244,700

Fluor Corp.

54,100

4,668,830

Jacobs Engineering Group, Inc. (a)

23,000

1,972,020

6,885,550

Electrical Equipment - 0.3%

ABB Ltd. sponsored ADR (a)

25,000

301,250

Cooper Industries Ltd. Class A

10,000

837,000

Rockwell Automation, Inc.

30,000

2,045,100

3,183,350

Industrial Conglomerates - 2.1%

General Electric Co.

566,200

18,610,994

Common Stocks - continued

Shares

Value

INDUSTRIALS - continued

Industrial Conglomerates - continued

Smiths Group PLC

58,000

$955,345

Tyco International Ltd.

126,800

3,270,172

22,836,511

Machinery - 0.4%

Deere & Co.

40,000

3,050,800

Watts Water Technologies, Inc. Class A

27,000

966,060

4,016,860

Road & Rail - 0.2%

Norfolk Southern Corp.

42,700

2,185,386

Old Dominion Freight Lines, Inc. (a)

12,000

316,320

2,501,706

Trading Companies & Distributors - 0.2%

H&E Equipment Services, Inc.

3,600

90,324

Interline Brands, Inc. (a)

15,000

348,750

WESCO International, Inc. (a)

36,000

2,063,520

2,502,594

Transportation Infrastructure - 0.1%

Grupo Aeroportuario del Pacifico SA de CV sponsored ADR

23,600

679,680

TOTAL INDUSTRIALS

92,724,547

INFORMATION TECHNOLOGY - 5.8%

Communications Equipment - 0.8%

Alcatel SA sponsored ADR (a)

20,000

270,000

Comverse Technology, Inc. (a)

84,000

2,415,840

Dycom Industries, Inc. (a)

55,000

1,174,250

Extreme Networks, Inc. (a)

100,000

463,000

MasTec, Inc. (a)

86,700

1,122,765

Nokia Corp. sponsored ADR

112,000

2,080,960

Nortel Networks Corp. (a)

330,000

943,800

8,470,615

Computers & Peripherals - 1.2%

EMC Corp. (a)

18,000

252,360

Hewlett-Packard Co.

302,900

9,938,149

Palm, Inc. (a)

8,000

330,400

Seagate Technology

115,000

3,055,550

13,576,459

Electronic Equipment & Instruments - 1.1%

Agilent Technologies, Inc. (a)

114,100

4,107,600

Common Stocks - continued

Shares

Value

INFORMATION TECHNOLOGY - continued

Electronic Equipment & Instruments - continued

Amphenol Corp. Class A

14,000

$703,220

Avnet, Inc. (a)

5,000

125,650

Jabil Circuit, Inc. (a)

28,000

1,059,800

Molex, Inc.

25,000

795,750

Symbol Technologies, Inc.

163,200

1,896,384

Trimble Navigation Ltd. (a)

35,000

1,431,850

Vishay Intertechnology, Inc. (a)

127,000

1,844,040

11,964,294

Internet Software & Services - 0.5%

Digital River, Inc. (a)

13,000

489,320

eBay, Inc. (a)

44,500

1,782,670

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

6,900

2,502,078

Yahoo!, Inc. (a)

25,000

801,500

5,575,568

IT Services - 0.3%

Ceridian Corp. (a)

60,000

1,551,600

First Data Corp.

45,000

2,030,850

3,582,450

Office Electronics - 0.2%

Xerox Corp. (a)

92,000

1,370,800

Zebra Technologies Corp. Class A (a)

15,000

662,100

2,032,900

Semiconductors & Semiconductor Equipment - 0.8%

Altera Corp. (a)

30,000

601,200

Freescale Semiconductor, Inc. Class A (a)

51,500

1,384,835

Intel Corp.

35,000

721,000

Marvell Technology Group Ltd. (a)

19,000

1,163,180

Maxim Integrated Products, Inc.

22,000

859,980

Micron Technology, Inc. (a)

99,000

1,535,490

PMC-Sierra, Inc. (a)

56,800

579,928

Samsung Electronics Co. Ltd.

1,480

1,037,702

Teradyne, Inc. (a)

50,000

839,500

8,722,815

Software - 0.9%

BEA Systems, Inc. (a)

85,900

985,273

Cognos, Inc. (a)

20,000

768,737

Macrovision Corp. (a)

35,000

707,350

Microsoft Corp.

133,900

3,601,910

NAVTEQ Corp. (a)

40,000

1,852,400

Common Stocks - continued

Shares

Value

INFORMATION TECHNOLOGY - continued

Software - continued

Symantec Corp. (a)

102,000

$1,722,780

Ulticom, Inc. (a)

40,000

447,200

10,085,650

TOTAL INFORMATION TECHNOLOGY

64,010,751

MATERIALS - 3.0%

Chemicals - 1.3%

Chemtura Corp.

85,100

942,908

Cytec Industries, Inc.

23,000

1,226,820

E.I. du Pont de Nemours & Co.

76,600

3,082,384

Ecolab, Inc.

35,100

1,270,269

Georgia Gulf Corp.

28,000

803,600

Lyondell Chemical Co.

44,733

935,814

Monsanto Co.

7,000

587,160

NOVA Chemicals Corp.

37,000

1,205,272

Praxair, Inc.

40,000

2,159,200

Rockwood Holdings, Inc.

38,000

870,200

Rohm & Haas Co.

27,000

1,343,250

14,426,877

Construction Materials - 0.2%

Martin Marietta Materials, Inc.

16,000

1,560,000

Containers & Packaging - 0.5%

Ball Corp.

15,000

639,000

Owens-Illinois, Inc. (a)

84,700

1,587,278

Packaging Corp. of America

84,400

1,925,164

Smurfit-Stone Container Corp. (a)

125,000

1,640,000

5,791,442

Metals & Mining - 1.0%

Alcoa, Inc.

69,700

2,043,604

Allegheny Technologies, Inc.

9,000

454,590

Freeport-McMoRan Copper & Gold, Inc. Class B

18,000

911,340

Mittal Steel Co. NV Class A (NY Shares)

28,000

927,360

Newmont Mining Corp.

104,800

5,546,016

Oregon Steel Mills, Inc. (a)

35,000

1,325,800

11,208,710

TOTAL MATERIALS

32,987,029

Common Stocks - continued

Shares

Value

TELECOMMUNICATION SERVICES - 1.9%

Diversified Telecommunication Services - 0.9%

AT&T, Inc.

237,800

$6,560,902

CenturyTel, Inc.

48,689

1,751,830

Covad Communications Group, Inc. (a)

375,000

487,500

Verizon Communications, Inc.

34,800

1,172,760

9,972,992

Wireless Telecommunication Services - 1.0%

American Tower Corp. Class A (a)

168,000

5,347,440

Leap Wireless International, Inc. (a)

16,000

673,760

Sprint Nextel Corp.

228,885

5,500,107

11,521,307

TOTAL TELECOMMUNICATION SERVICES

21,494,299

UTILITIES - 0.6%

Electric Utilities - 0.2%

PPL Corp.

50,600

1,609,080

Westar Energy, Inc.

20,000

430,400

2,039,480

Independent Power Producers & Energy Traders - 0.2%

AES Corp. (a)

55,600

961,880

Mirant Corp. (a)

53,377

1,313,074

2,274,954

Multi-Utilities - 0.2%

CMS Energy Corp. (a)

94,700

1,333,376

PG&E Corp.

35,200

1,339,360

2,672,736

TOTAL UTILITIES

6,987,170

TOTAL COMMON STOCKS

(Cost $658,901,853)

777,152,028

Preferred Stocks - 14.0%

Convertible Preferred Stocks - 4.9%

CONSUMER DISCRETIONARY - 0.2%

Hotels, Restaurants & Leisure - 0.2%

Six Flags, Inc. 7.25% PIERS

82,700

1,906,235

Preferred Stocks - continued

Shares

Value

Convertible Preferred Stocks - continued

CONSUMER DISCRETIONARY - continued

Media - 0.0%

Emmis Communications Corp. Series A, 6.25%

10,100

$404,000

TOTAL CONSUMER DISCRETIONARY

2,310,235

ENERGY - 2.1%

Oil, Gas & Consumable Fuels - 2.1%

Chesapeake Energy Corp. 4.50%

15,000

1,370,700

El Paso Corp. 4.99% (f)

10,000

11,580,500

Valero Energy Corp. 2.00%

96,600

10,334,268

23,285,468

FINANCIALS - 0.2%

Diversified Financial Services - 0.2%

Carriage Services Capital Trust 7.00% TIDES

45,000

1,755,000

INDUSTRIALS - 0.2%

Road & Rail - 0.2%

Kansas City Southern:

4.25%

1,370

1,077,272

5.125%

1,000

1,018,750

2,096,022

MATERIALS - 1.2%

Chemicals - 0.7%

Celanese Corp. 4.25%

252,600

7,701,774

Containers & Packaging - 0.4%

Owens-Illinois, Inc. 4.75%

113,510

3,916,095

Metals & Mining - 0.1%

Freeport-McMoRan Copper & Gold, Inc. 5.50% (f)

1,050

1,201,044

TOTAL MATERIALS

12,818,913

UTILITIES - 1.0%

Electric Utilities - 0.6%

AES Trust VII 6.00%

140,500

6,727,140

Preferred Stocks - continued

Shares

Value

Convertible Preferred Stocks - continued

UTILITIES - continued

Independent Power Producers & Energy Traders - 0.4%

NRG Energy, Inc.:

4.00% (f)

3,900

$4,727,436

Series A, 5.75%

1,000

232,960

4,960,396

TOTAL UTILITIES

11,687,536

TOTAL CONVERTIBLE PREFERRED STOCKS

53,953,174

Nonconvertible Preferred Stocks - 9.1%

CONSUMER DISCRETIONARY - 0.1%

Household Durables - 0.1%

Hovnanian Enterprises, Inc. Series A, 7.625%

40,000

977,440

CONSUMER STAPLES - 0.1%

Food Products - 0.1%

H.J. Heinz Finance Co. 6.226%

10

1,026,500

ENERGY - 0.1%

Oil, Gas & Consumable Fuels - 0.1%

Apache Corp. (depositary shares) Series B, 5.68%

9,875

992,438

FINANCIALS - 5.9%

Capital Markets - 1.3%

Bear Stearns Companies, Inc.:

Series E, 6.155%

15,000

768,300

Series G, 5.49%

15,000

736,800

Goldman Sachs Group, Inc.:

Series A, 3.9106%

120,000

3,108,000

Series C, 4.9931%

40,000

1,051,600

Lehman Brothers Holdings, Inc. (depositary shares) Series F, 6.50%

169,015

4,363,967

Merrill Lynch & Co., Inc. Series H, 3.97%

120,000

3,038,400

Morgan Stanley Capital Trust IV 6.60%

80,000

2,026,400

15,093,467

Commercial Banks - 1.3%

ABN AMRO Capital Funding Trust V 5.90%

20,000

483,000

ABN Amro Capital Funding Trust VII 6.08%

40,400

1,003,940

First Tennessee Bank NA, Memphis 3.90% (f)

5,000

5,143,750

Preferred Stocks - continued

Shares

Value

Nonconvertible Preferred Stocks - continued

FINANCIALS - continued

Commercial Banks - continued

HSBC USA, Inc.:

Series F, 3.87%

160,000

$4,144,000

Series G, 4.9175%

80,000

2,104,000

Santander Finance Preferred SA Unipersonal 6.41%

69,400

1,731,530

14,610,220

Consumer Finance - 0.3%

SLM Corp.:

4.07%

10,000

1,035,000

Series A, 6.97%

43,400

2,421,720

3,456,720

Diversified Financial Services - 0.2%

CIT Group, Inc. Series B, 5.189%

15,000

1,481,850

JPMorgan Chase & Co. (depositary shares) Series H, 6.625%

6,530

333,683

1,815,533

Insurance - 0.2%

AmerUs Group Co. 7.25%

40,000

1,051,200

MetLife, Inc. Series A, 4.39%

40,000

1,040,400

2,091,600

Real Estate - 0.6%

Apartment Investment & Management Co.:

Series Q, 10.10%

46,510

1,163,215

Series V, 8.00%

79,000

2,006,600

Duke Realty Corp. (depositary shares) Series K, 6.50%

95,800

2,371,050

Host Marriott Corp. Series E, 8.875%

20,000

534,400

Vornado Realty Trust Series E, 7.00%

40,000

1,022,400

7,097,665

Thrifts & Mortgage Finance - 2.0%

Fannie Mae:

7.00%

42,200

2,304,120

Series H, 5.81%

69,200

3,477,300

Series L, 5.125%

90,900

4,197,762

Series N, 5.50%

71,650

3,457,113

Freddie Mac:

Series F, 5.00%

58,500

2,574,000

Series H, 5.10%

10,300

471,843

Series K, 5.79%

35,200

1,763,520

Preferred Stocks - continued

Shares

Value

Nonconvertible Preferred Stocks - continued

FINANCIALS - continued

Thrifts & Mortgage Finance - continued

Freddie Mac: - continued

Series O, 5.81%

19,500

$995,475

Series R, 5.70%

57,000

2,775,900

22,017,033

TOTAL FINANCIALS

66,182,238

INDUSTRIALS - 0.0%

Aerospace & Defense - 0.0%

RC Trust I 7.00% (a)

9,680

485,513

MATERIALS - 0.1%

Chemicals - 0.1%

E.I. du Pont de Nemours & Co. Series B, 4.50%

9,900

811,800

Metals & Mining - 0.0%

Alcoa, Inc. 3.75%

6,400

468,800

TOTAL MATERIALS

1,280,600

UTILITIES - 2.8%

Electric Utilities - 2.4%

Alabama Power Co. 5.30%

88,600

2,223,860

Duquesne Light Co. 6.50%

106,050

5,445,668

Entergy Louisiana LLC 6.95% (f)

7,500

751,875

FPL Group Capital Trust I 5.875%

20,000

491,200

Heco Capital Trust III 6.50%

12,000

305,160

Pacific Gas & Electric Co.:

Series A, 5.00%

16,900

365,378

Series B, 5.50%

61,900

1,460,840

Series D 5.00%

69,200

1,477,420

Southern California Edison Co.:

4.78%

46,500

1,010,910

5.349%

40,000

4,000,000

6.125%

30,000

3,045,000

Series B, 4.08%

27,271

518,422

Series C:

4.24%

94,600

1,787,940

Preferred Stocks - continued

Shares

Value

Nonconvertible Preferred Stocks - continued

UTILITIES - continued

Electric Utilities - continued

Southern California Edison Co.: - continued

6.00%

20,000

$2,000,000

Series D, 4.32%

70,000

1,386,000

26,269,673

Multi-Utilities - 0.4%

Consolidated Edison Co. of New York, Inc. Series A, 5.00%

28,705

2,627,943

San Diego Gas & Electric Co. 1.70%

67,548

1,745,697

4,373,640

TOTAL UTILITIES

30,643,313

TOTAL NONCONVERTIBLE PREFERRED STOCKS

101,588,042

TOTAL PREFERRED STOCKS

(Cost $145,407,547)

155,541,216

Money Market Funds - 4.4%

Fidelity Cash Central Fund, 4.57% (b)

40,024,022

40,024,022

Fidelity Securities Lending Cash Central Fund, 4.58% (b)(c)

9,336,750

9,336,750

TOTAL MONEY MARKET FUNDS

(Cost $49,360,772)

49,360,772

TOTAL INVESTMENT PORTFOLIO - 101.1%

(Cost $988,962,559)

1,123,624,805

NET OTHER ASSETS - (1.1)%

(12,578,458)

NET ASSETS - 100%

$1,111,046,347

Security Type Abbreviations

PIERS-Preferred Income Equity
Redeemable Securities

TIDES-Term Income Deferred
Equity Securities

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)Debt obligation 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)Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the period end, the value of these securities amounted to $53,964,450 or 4.9% of net assets.

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

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

Affiliated Central Funds

Information regarding fiscal year to date income earned by the fund from the affiliated Central funds is as follows:

Fund

Income earned

Fidelity Cash Central Fund

$364,800

Fidelity Securities Lending Cash Central Fund

19,557

Total

$384,357

Income Tax Information

At February 28, 2006, the aggregate cost of investment securities for income tax purposes was $990,837,896. Net unrealized appreciation aggregated $132,786,909, of which $151,392,465 related to appreciated investment securities and $18,605,556 related to depreciated investment securities.

Investment Valuation

Investments are valued as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Security transactions are accounted for as of trade date. Wherever possible, the fund uses independent pricing services approved by the Board of Trustees to value its investments. 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 yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. 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. 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. The frequency of when fair value pricing is used is unpredictable. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities. Investments in open-end mutual 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.

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 Corp. 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/Christine Reynolds

Christine Reynolds

President and Treasurer

Date:

April 17, 2006

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

By:

/s/Christine Reynolds

Christine Reynolds

President and Treasurer

Date:

April 17, 2006

By:

/s/Paul M. Murphy

Paul M. Murphy

Chief Financial Officer

Date:

April 17, 2006