N-Q 1 main.htm

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

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-3587

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

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

Scott C. Goebel, Secretary

82 Devonshire St.

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

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

Date of fiscal year end:

November 30

 

 

Date of reporting period:

February 28, 2009

Item 1. Schedule of Investments

Quarterly Holdings Report

for

Fidelity ® Convertible Securities Fund

February 28, 2009 

1.797939.105

CVS-QTLY-0409

Investments February 28, 2009 (Unaudited)

Showing Percentage of Net Assets

Corporate Bonds - 60.6%

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - 59.8%

CONSUMER DISCRETIONARY - 4.3%

Diversified Consumer Services - 0.8%

Stewart Enterprises, Inc.:

3.125% 7/15/14 (g)

$ 12,000

$ 6,093

3.375% 7/15/16 (g)

12,000

5,154

 

11,247

Hotels, Restaurants & Leisure - 0.9%

Ambassadors International, Inc. 3.75% 4/15/27 (g)

8,000

2,000

WMS Industries, Inc.:

2.75% 7/15/10 (g)

4,000

5,620

2.75% 7/15/10

2,800

3,934

 

11,554

Media - 1.5%

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

19,297

17,174

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

10,000

2,700

 

19,874

Specialty Retail - 1.1%

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

3,000

1,064

Eddie Bauer Holdings, Inc.:

5.25% 4/1/14 (g)

15,750

4,544

5.25% 4/1/14

2,000

577

United Auto Group, Inc.:

3.5% 4/1/26 (g)

10,000

6,460

3.5% 4/1/26

2,533

1,636

 

14,281

TOTAL CONSUMER DISCRETIONARY

56,956

CONSUMER STAPLES - 5.5%

Beverages - 1.1%

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

14,000

14,304

Food & Staples Retailing - 3.0%

Nash-Finch Co. 1.6314% 3/15/35 (e)

34,480

13,353

Rite Aid Corp. 8.5% 5/15/15

9,100

2,389

The Great Atlantic & Pacific Tea Co.:

5.125% 6/15/11

18,000

9,360

6.75% 12/15/12

12,000

5,880

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

14,000

9,331

 

40,313

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

CONSUMER STAPLES - continued

Food Products - 1.4%

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

$ 12,250

$ 7,572

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

13,000

10,805

 

18,377

TOTAL CONSUMER STAPLES

72,994

ENERGY - 13.9%

Energy Equipment & Services - 2.0%

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

10,000

3,488

Grey Wolf, Inc. 1.4088% 4/1/24 (h)

3,880

3,841

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

20,000

7,080

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

5,000

3,021

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

4,500

3,361

SESI LLC 1.5% 12/15/26 (e)(g)

7,000

5,044

 

25,835

Oil, Gas & Consumable Fuels - 11.9%

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

25,500

17,452

Chesapeake Energy Corp. 2.5% 5/15/37

75,250

45,692

Goodrich Petroleum Corp. 3.25% 12/1/26

6,000

4,313

Patriot Coal Corp. 3.25% 5/31/13 (g)

6,000

2,685

Peabody Energy Corp. 4.75% 12/15/66

107,250

72,662

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

14,500

10,585

St. Mary Land & Exploration Co. 3.5% 4/1/27 (g)

8,000

5,763

 

159,152

TOTAL ENERGY

184,987

FINANCIALS - 2.5%

Diversified Financial Services - 1.8%

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

30,000

23,775

Real Estate Investment Trusts - 0.7%

Ventas, Inc. 3.875% 11/15/11 (g)

12,000

9,720

TOTAL FINANCIALS

33,495

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

HEALTH CARE - 6.3%

Health Care Equipment & Supplies - 4.1%

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

$ 8,500

$ 7,682

Inverness Medical Innovations, Inc.:

3% 5/15/16 (g)

21,000

15,960

3% 5/15/16

10,000

7,600

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

15,000

10,248

Medtronic, Inc. 1.625% 4/15/13

8,000

6,960

SonoSite, Inc. 3.75% 7/15/14

7,000

5,865

 

54,315

Health Care Providers & Services - 0.3%

Omnicare, Inc. 3.25% 12/15/35

7,000

4,708

Life Sciences Tools & Services - 1.9%

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

4,000

3,190

Fisher Scientific International, Inc.:

2.5% 10/1/23 (g)

3,300

5,181

2.5% 10/1/23

7,400

11,618

Nektar Therapeutics 3.25% 9/28/12

9,000

5,807

 

25,796

TOTAL HEALTH CARE

84,819

INDUSTRIALS - 7.8%

Aerospace & Defense - 1.0%

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

14,000

13,532

Airlines - 1.3%

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

10,000

7,600

UAL Corp.:

4.5% 6/30/21 (g)

10,500

4,396

4.5% 6/30/21

5,000

2,094

US Airways Group, Inc. 7% 9/30/20 (g)

4,810

3,084

 

17,174

Construction & Engineering - 0.5%

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

7,000

6,930

Electrical Equipment - 2.5%

C&D Technologies, Inc.:

5.25% 11/1/25 (g)

4,400

2,508

5.25% 11/1/25

32,596

18,580

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

INDUSTRIALS - continued

Electrical Equipment - continued

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

$ 4,000

$ 920

General Cable Corp. 1% 10/15/12 (g)

16,000

10,885

 

32,893

Machinery - 0.6%

Greenbrier Companies, Inc.:

2.375% 5/15/26 (g)

5,500

2,138

2.375% 5/15/26

8,000

3,110

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

7,000

2,949

 

8,197

Marine - 1.9%

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

34,000

6,871

Horizon Lines, Inc. 4.25% 8/15/12 (g)

40,000

19,200

 

26,071

TOTAL INDUSTRIALS

104,797

INFORMATION TECHNOLOGY - 18.1%

Communications Equipment - 2.1%

Finisar Corp. 2.5% 10/15/10

15,760

7,878

JDS Uniphase Corp. 1% 5/15/26 (g)

14,000

8,260

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

3,000

2,918

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

10,000

4,346

Nortel Networks Corp. 2.125% 4/15/14 (d)(g)

10,000

1,300

Symmetricom, Inc. 3.25% 6/15/25

5,214

3,909

 

28,611

Computers & Peripherals - 2.0%

EMC Corp. 1.75% 12/1/13 (g)

17,000

16,061

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

11,000

2,970

SanDisk Corp. 1% 5/15/13

13,000

7,020

 

26,051

Electronic Equipment & Components - 3.8%

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

4,540

3,391

Flextronics International Ltd. 1% 8/1/10

30,580

27,446

L-1 Identity Solutions, Inc. 3.75% 5/15/27

10,000

6,353

Merix Corp.:

4% 5/15/13 (g)

11,250

2,672

4% 5/15/13

7,600

1,805

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

INFORMATION TECHNOLOGY - continued

Electronic Equipment & Components - continued

Newport Corp. 2.5% 2/15/12 (g)

$ 3,750

$ 2,488

SYNNEX Corp. 4% 5/15/18 (g)

10,000

7,012

 

51,167

Internet Software & Services - 0.4%

GSI Commerce, Inc. 2.5% 6/1/27 (g)

10,000

4,900

IT Services - 1.9%

BearingPoint, Inc. 3.1% 12/15/24 (g)

8,000

4

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

6,000

5,667

DST Systems, Inc. Series A:

4.125% 8/15/23 (g)

4,300

4,042

4.125% 8/15/23

16,800

15,792

 

25,505

Semiconductors & Semiconductor Equipment - 7.0%

Advanced Micro Devices, Inc.:

5.75% 8/15/12

40,000

16,050

6% 5/1/15

15,000

5,475

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

7,000

2,100

Credence Systems Corp.:

3.5% 5/15/10 (g)

8,000

1,600

3.5% 5/15/10

7,500

1,500

Intel Corp. 2.95% 12/15/35

38,000

29,293

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

10,000

3,699

ON Semiconductor Corp.:

1.875% 12/15/25 (g)

3,750

2,736

2.625% 12/15/26

35,330

22,325

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

10,000

8,515

Spansion, Inc. 2.25% 6/15/16 (d)(g)

7,267

36

 

93,329

Software - 0.9%

Borland Software Corp. 2.75% 2/15/12 (g)

13,000

7,743

Symantec Corp. 1% 6/15/13

5,000

4,631

 

12,374

TOTAL INFORMATION TECHNOLOGY

241,937

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

MATERIALS - 0.2%

Metals & Mining - 0.2%

Newmont Mining Corp. 3% 2/15/12

$ 2,120

$ 2,480

TELECOMMUNICATION SERVICES - 1.2%

Diversified Telecommunication Services - 0.8%

Level 3 Communications, Inc. 3.5% 6/15/12

16,000

6,671

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

6,000

4,140

 

10,811

Wireless Telecommunication Services - 0.4%

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

8,000

5,447

TOTAL TELECOMMUNICATION SERVICES

16,258

TOTAL CONVERTIBLE BONDS

798,723

Nonconvertible Bonds - 0.8%

CONSUMER STAPLES - 0.2%

Personal Products - 0.2%

Revlon Consumer Products Corp. 9.5% 4/1/11

3,745

2,519

FINANCIALS - 0.2%

Consumer Finance - 0.2%

GMAC LLC:

7.5% 12/31/13 (g)

4,264

1,791

8% 12/31/18 (g)

3,812

915

 

2,706

INFORMATION TECHNOLOGY - 0.4%

Semiconductors & Semiconductor Equipment - 0.4%

Amkor Technology, Inc.:

7.75% 5/15/13

1,995

1,137

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Nonconvertible Bonds - continued

INFORMATION TECHNOLOGY - continued

Semiconductors & Semiconductor Equipment - continued

Amkor Technology, Inc.: - continued

9.25% 6/1/16

$ 5,935

$ 3,324

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

20,000

889

 

5,350

TOTAL NONCONVERTIBLE BONDS

10,575

TOTAL CORPORATE BONDS

(Cost $1,297,244)

809,298

Common Stocks - 3.2%

Shares

 

CONSUMER DISCRETIONARY - 0.6%

Diversified Consumer Services - 0.3%

Service Corp. International

1,143,000

3,863

Hotels, Restaurants & Leisure - 0.3%

Domino's Pizza, Inc. (a)

170,400

1,164

Las Vegas Sands Corp. (a)(f)

1,539,400

3,510

 

4,674

TOTAL CONSUMER DISCRETIONARY

8,537

ENERGY - 1.1%

Oil, Gas & Consumable Fuels - 1.1%

McMoRan Exploration Co. (a)(f)

500,000

2,295

Teekay Corp.

795,625

12,563

 

14,858

FINANCIALS - 0.7%

Commercial Banks - 0.7%

KeyCorp

1,297,800

9,098

Diversified Financial Services - 0.0%

CIT Group, Inc.

136,300

334

Common Stocks - continued

Shares

Value (000s)

FINANCIALS - continued

Thrifts & Mortgage Finance - 0.0%

Washington Mutual, Inc.

2,959,042

$ 74

TOTAL FINANCIALS

9,506

INFORMATION TECHNOLOGY - 0.8%

Electronic Equipment & Components - 0.1%

L-1 Identity Solutions, Inc. (a)

100,000

460

Semiconductors & Semiconductor Equipment - 0.7%

Amkor Technology, Inc. (a)

843,200

1,442

EMCORE Corp. (a)(f)

172,258

119

ON Semiconductor Corp. (a)

2,169,500

7,940

 

9,501

TOTAL INFORMATION TECHNOLOGY

9,961

TOTAL COMMON STOCKS

(Cost $99,824)

42,862

Convertible Preferred Stocks - 32.0%

 

 

 

 

CONSUMER DISCRETIONARY - 0.8%

Automobiles - 0.5%

Ford Motor Co. Capital Trust II 6.50%

450,000

3,488

General Motors Corp. Series C, 6.25%

1,501,467

3,829

 

7,317

Media - 0.3%

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

10,000

3,588

TOTAL CONSUMER DISCRETIONARY

10,905

CONSUMER STAPLES - 3.5%

Food Products - 3.5%

Archer Daniels Midland Co. 6.25%

600,000

21,204

Bunge Ltd.:

4.875%

237,000

15,047

5.125%

22,000

10,108

 

46,359

Convertible Preferred Stocks - continued

Shares

Value (000s)

ENERGY - 8.0%

Oil, Gas & Consumable Fuels - 8.0%

Chesapeake Energy Corp. 4.50%

135,271

$ 7,863

El Paso Corp. 4.99% (g)

154,990

95,320

Goodrich Petroleum Corp. 5.375%

100,000

3,526

 

106,709

FINANCIALS - 11.1%

Commercial Banks - 6.3%

Huntington Bancshares, Inc. 8.50%

40,000

10,430

KeyCorp Series A, 7.75%

300,000

18,450

Wells Fargo & Co. 7.50%

120,550

55,453

 

84,333

Diversified Financial Services - 4.8%

Bank of America Corp. Series L, 7.25%

178,285

63,291

CIT Group, Inc. Series C, 8.75%

25,300

377

 

63,668

TOTAL FINANCIALS

148,001

MATERIALS - 8.2%

Chemicals - 2.7%

Celanese Corp. 4.25%

2,893,200

36,252

Metals & Mining - 5.5%

Freeport-McMoRan Copper & Gold, Inc.:

5.50%

18,400

14,080

6.75%

1,093,500

59,144

 

73,224

TOTAL MATERIALS

109,476

UTILITIES - 0.4%

Independent Power Producers & Energy Traders - 0.4%

NRG Energy, Inc. Series A, 5.75%

26,800

5,183

TOTAL CONVERTIBLE PREFERRED STOCKS

(Cost $894,235)

426,633

Floating Rate Loans - 0.8%

 

Principal Amount (000s)

Value (000s)

CONSUMER DISCRETIONARY - 0.2%

Media - 0.2%

Education Media and Publishing Group Ltd. Tranche 2LN, term loan 10.7563% 12/12/14 (h)

$ 7,371

$ 2,211

FINANCIALS - 0.6%

Diversified Financial Services - 0.6%

CCO Holdings, LLC Tranche 3LN, term loan 3.9588% 9/6/14 (h)

15,000

8,700

TOTAL FLOATING RATE LOANS

(Cost $18,838)

10,911

Money Market Funds - 2.4%

Shares

 

Fidelity Cash Central Fund, 0.59% (b)

27,131,324

27,131

Fidelity Securities Lending Cash Central Fund, 0.66% (b)(c)

4,942,707

4,943

TOTAL MONEY MARKET FUNDS

(Cost $32,074)

32,074

Cash Equivalents - 0.2%

Maturity Amount (000s)

 

Investments in repurchase agreements in a joint trading account at 0.26%, dated 2/27/09 due 3/2/09 (Collateralized by U.S. Treasury Obligations) #
(Cost $2,451)

$ 2,451

2,451

TOTAL INVESTMENT PORTFOLIO - 99.2%

(Cost $2,344,666)

1,324,229

NET OTHER ASSETS - 0.8%

10,102

NET ASSETS - 100%

$ 1,334,331

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) Non-income producing - Issuer is in default.

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

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

(g) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $392,910,000 or 29.4% of net assets.

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

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

Repurchase Agreement / Counterparty

Value
(Amounts in thousands)

$2,451,000 due 3/02/09 at 0.26%

BNP Paribas Securities Corp.

$ 1,210

Banc of America Securities LLC

451

Barclays Capital, Inc.

643

Deutsche Bank Securities, Inc.

147

 

$ 2,451

Affiliated Central Funds

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

Fund

Income earned
(Amounts in thousands)

Fidelity Cash Central Fund

$ 86

Fidelity Securities Lending Cash Central Fund

14

Total

$ 100

Other Information

The following is a summary of the inputs used, as of February 28, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Investment Valuation section at the end of this listing.

Valuation Inputs at Reporting Date:

Description
(Amounts in thousands)

Total

Level 1

Level 2

Level 3

Investments in Securities

$ 1,324,229

$ 103,816

$ 1,218,202

$ 2,211

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

(Amounts in thousands)

Investments in Securities

Beginning Balance

$ 11,213

Total Realized Gain (Loss)

(7,309)

Total Unrealized Gain (Loss)

2,389

Cost of Purchases

135

Proceeds of Sales

(1,178)

Amortization/Accretion

45

Transfer in/out of Level 3

(3,084)

Ending Balance

$ 2,211

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

Income Tax Information

At February 28, 2009, the aggregate cost of investment securities for income tax purposes was $2,340,758,000. Net unrealized depreciation aggregated $1,016,529,000, of which $9,058,000 related to appreciated investment securities and $1,025,587,000 related to depreciated investment securities.

Investment Valuation

Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Security transactions are accounted for as of trade date. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.

Debt securities, including restricted securities, 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 available dealer supplied prices. A significant portion of the Fund's securities are valued at period end by a single source or dealer. 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, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value. Actual prices received at disposition may differ.

When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value calculation under these procedures may differ from published prices for the same securities.

The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157). SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:

Level 1 - Quoted prices in active markets for identical securities.

Level 2 - Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others.

Level 3 - Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available.

Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.

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

Quarterly Report

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

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

Quarterly Report

Quarterly Holdings Report

for

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

February 28, 2009

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

1.884072.100

ACVS-QTLY-0409

Investments February 28, 2009 (Unaudited)

Showing Percentage of Net Assets

Corporate Bonds - 60.6%

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - 59.8%

CONSUMER DISCRETIONARY - 4.3%

Diversified Consumer Services - 0.8%

Stewart Enterprises, Inc.:

3.125% 7/15/14 (g)

$ 12,000

$ 6,093

3.375% 7/15/16 (g)

12,000

5,154

 

11,247

Hotels, Restaurants & Leisure - 0.9%

Ambassadors International, Inc. 3.75% 4/15/27 (g)

8,000

2,000

WMS Industries, Inc.:

2.75% 7/15/10 (g)

4,000

5,620

2.75% 7/15/10

2,800

3,934

 

11,554

Media - 1.5%

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

19,297

17,174

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

10,000

2,700

 

19,874

Specialty Retail - 1.1%

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

3,000

1,064

Eddie Bauer Holdings, Inc.:

5.25% 4/1/14 (g)

15,750

4,544

5.25% 4/1/14

2,000

577

United Auto Group, Inc.:

3.5% 4/1/26 (g)

10,000

6,460

3.5% 4/1/26

2,533

1,636

 

14,281

TOTAL CONSUMER DISCRETIONARY

56,956

CONSUMER STAPLES - 5.5%

Beverages - 1.1%

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

14,000

14,304

Food & Staples Retailing - 3.0%

Nash-Finch Co. 1.6314% 3/15/35 (e)

34,480

13,353

Rite Aid Corp. 8.5% 5/15/15

9,100

2,389

The Great Atlantic & Pacific Tea Co.:

5.125% 6/15/11

18,000

9,360

6.75% 12/15/12

12,000

5,880

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

14,000

9,331

 

40,313

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

CONSUMER STAPLES - continued

Food Products - 1.4%

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

$ 12,250

$ 7,572

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

13,000

10,805

 

18,377

TOTAL CONSUMER STAPLES

72,994

ENERGY - 13.9%

Energy Equipment & Services - 2.0%

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

10,000

3,488

Grey Wolf, Inc. 1.4088% 4/1/24 (h)

3,880

3,841

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

20,000

7,080

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

5,000

3,021

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

4,500

3,361

SESI LLC 1.5% 12/15/26 (e)(g)

7,000

5,044

 

25,835

Oil, Gas & Consumable Fuels - 11.9%

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

25,500

17,452

Chesapeake Energy Corp. 2.5% 5/15/37

75,250

45,692

Goodrich Petroleum Corp. 3.25% 12/1/26

6,000

4,313

Patriot Coal Corp. 3.25% 5/31/13 (g)

6,000

2,685

Peabody Energy Corp. 4.75% 12/15/66

107,250

72,662

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

14,500

10,585

St. Mary Land & Exploration Co. 3.5% 4/1/27 (g)

8,000

5,763

 

159,152

TOTAL ENERGY

184,987

FINANCIALS - 2.5%

Diversified Financial Services - 1.8%

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

30,000

23,775

Real Estate Investment Trusts - 0.7%

Ventas, Inc. 3.875% 11/15/11 (g)

12,000

9,720

TOTAL FINANCIALS

33,495

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

HEALTH CARE - 6.3%

Health Care Equipment & Supplies - 4.1%

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

$ 8,500

$ 7,682

Inverness Medical Innovations, Inc.:

3% 5/15/16 (g)

21,000

15,960

3% 5/15/16

10,000

7,600

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

15,000

10,248

Medtronic, Inc. 1.625% 4/15/13

8,000

6,960

SonoSite, Inc. 3.75% 7/15/14

7,000

5,865

 

54,315

Health Care Providers & Services - 0.3%

Omnicare, Inc. 3.25% 12/15/35

7,000

4,708

Life Sciences Tools & Services - 1.9%

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

4,000

3,190

Fisher Scientific International, Inc.:

2.5% 10/1/23 (g)

3,300

5,181

2.5% 10/1/23

7,400

11,618

Nektar Therapeutics 3.25% 9/28/12

9,000

5,807

 

25,796

TOTAL HEALTH CARE

84,819

INDUSTRIALS - 7.8%

Aerospace & Defense - 1.0%

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

14,000

13,532

Airlines - 1.3%

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

10,000

7,600

UAL Corp.:

4.5% 6/30/21 (g)

10,500

4,396

4.5% 6/30/21

5,000

2,094

US Airways Group, Inc. 7% 9/30/20 (g)

4,810

3,084

 

17,174

Construction & Engineering - 0.5%

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

7,000

6,930

Electrical Equipment - 2.5%

C&D Technologies, Inc.:

5.25% 11/1/25 (g)

4,400

2,508

5.25% 11/1/25

32,596

18,580

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

INDUSTRIALS - continued

Electrical Equipment - continued

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

$ 4,000

$ 920

General Cable Corp. 1% 10/15/12 (g)

16,000

10,885

 

32,893

Machinery - 0.6%

Greenbrier Companies, Inc.:

2.375% 5/15/26 (g)

5,500

2,138

2.375% 5/15/26

8,000

3,110

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

7,000

2,949

 

8,197

Marine - 1.9%

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

34,000

6,871

Horizon Lines, Inc. 4.25% 8/15/12 (g)

40,000

19,200

 

26,071

TOTAL INDUSTRIALS

104,797

INFORMATION TECHNOLOGY - 18.1%

Communications Equipment - 2.1%

Finisar Corp. 2.5% 10/15/10

15,760

7,878

JDS Uniphase Corp. 1% 5/15/26 (g)

14,000

8,260

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

3,000

2,918

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

10,000

4,346

Nortel Networks Corp. 2.125% 4/15/14 (d)(g)

10,000

1,300

Symmetricom, Inc. 3.25% 6/15/25

5,214

3,909

 

28,611

Computers & Peripherals - 2.0%

EMC Corp. 1.75% 12/1/13 (g)

17,000

16,061

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

11,000

2,970

SanDisk Corp. 1% 5/15/13

13,000

7,020

 

26,051

Electronic Equipment & Components - 3.8%

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

4,540

3,391

Flextronics International Ltd. 1% 8/1/10

30,580

27,446

L-1 Identity Solutions, Inc. 3.75% 5/15/27

10,000

6,353

Merix Corp.:

4% 5/15/13 (g)

11,250

2,672

4% 5/15/13

7,600

1,805

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

INFORMATION TECHNOLOGY - continued

Electronic Equipment & Components - continued

Newport Corp. 2.5% 2/15/12 (g)

$ 3,750

$ 2,488

SYNNEX Corp. 4% 5/15/18 (g)

10,000

7,012

 

51,167

Internet Software & Services - 0.4%

GSI Commerce, Inc. 2.5% 6/1/27 (g)

10,000

4,900

IT Services - 1.9%

BearingPoint, Inc. 3.1% 12/15/24 (g)

8,000

4

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

6,000

5,667

DST Systems, Inc. Series A:

4.125% 8/15/23 (g)

4,300

4,042

4.125% 8/15/23

16,800

15,792

 

25,505

Semiconductors & Semiconductor Equipment - 7.0%

Advanced Micro Devices, Inc.:

5.75% 8/15/12

40,000

16,050

6% 5/1/15

15,000

5,475

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

7,000

2,100

Credence Systems Corp.:

3.5% 5/15/10 (g)

8,000

1,600

3.5% 5/15/10

7,500

1,500

Intel Corp. 2.95% 12/15/35

38,000

29,293

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

10,000

3,699

ON Semiconductor Corp.:

1.875% 12/15/25 (g)

3,750

2,736

2.625% 12/15/26

35,330

22,325

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

10,000

8,515

Spansion, Inc. 2.25% 6/15/16 (d)(g)

7,267

36

 

93,329

Software - 0.9%

Borland Software Corp. 2.75% 2/15/12 (g)

13,000

7,743

Symantec Corp. 1% 6/15/13

5,000

4,631

 

12,374

TOTAL INFORMATION TECHNOLOGY

241,937

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

MATERIALS - 0.2%

Metals & Mining - 0.2%

Newmont Mining Corp. 3% 2/15/12

$ 2,120

$ 2,480

TELECOMMUNICATION SERVICES - 1.2%

Diversified Telecommunication Services - 0.8%

Level 3 Communications, Inc. 3.5% 6/15/12

16,000

6,671

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

6,000

4,140

 

10,811

Wireless Telecommunication Services - 0.4%

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

8,000

5,447

TOTAL TELECOMMUNICATION SERVICES

16,258

TOTAL CONVERTIBLE BONDS

798,723

Nonconvertible Bonds - 0.8%

CONSUMER STAPLES - 0.2%

Personal Products - 0.2%

Revlon Consumer Products Corp. 9.5% 4/1/11

3,745

2,519

FINANCIALS - 0.2%

Consumer Finance - 0.2%

GMAC LLC:

7.5% 12/31/13 (g)

4,264

1,791

8% 12/31/18 (g)

3,812

915

 

2,706

INFORMATION TECHNOLOGY - 0.4%

Semiconductors & Semiconductor Equipment - 0.4%

Amkor Technology, Inc.:

7.75% 5/15/13

1,995

1,137

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Nonconvertible Bonds - continued

INFORMATION TECHNOLOGY - continued

Semiconductors & Semiconductor Equipment - continued

Amkor Technology, Inc.: - continued

9.25% 6/1/16

$ 5,935

$ 3,324

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

20,000

889

 

5,350

TOTAL NONCONVERTIBLE BONDS

10,575

TOTAL CORPORATE BONDS

(Cost $1,297,244)

809,298

Common Stocks - 3.2%

Shares

 

CONSUMER DISCRETIONARY - 0.6%

Diversified Consumer Services - 0.3%

Service Corp. International

1,143,000

3,863

Hotels, Restaurants & Leisure - 0.3%

Domino's Pizza, Inc. (a)

170,400

1,164

Las Vegas Sands Corp. (a)(f)

1,539,400

3,510

 

4,674

TOTAL CONSUMER DISCRETIONARY

8,537

ENERGY - 1.1%

Oil, Gas & Consumable Fuels - 1.1%

McMoRan Exploration Co. (a)(f)

500,000

2,295

Teekay Corp.

795,625

12,563

 

14,858

FINANCIALS - 0.7%

Commercial Banks - 0.7%

KeyCorp

1,297,800

9,098

Diversified Financial Services - 0.0%

CIT Group, Inc.

136,300

334

Common Stocks - continued

Shares

Value (000s)

FINANCIALS - continued

Thrifts & Mortgage Finance - 0.0%

Washington Mutual, Inc.

2,959,042

$ 74

TOTAL FINANCIALS

9,506

INFORMATION TECHNOLOGY - 0.8%

Electronic Equipment & Components - 0.1%

L-1 Identity Solutions, Inc. (a)

100,000

460

Semiconductors & Semiconductor Equipment - 0.7%

Amkor Technology, Inc. (a)

843,200

1,442

EMCORE Corp. (a)(f)

172,258

119

ON Semiconductor Corp. (a)

2,169,500

7,940

 

9,501

TOTAL INFORMATION TECHNOLOGY

9,961

TOTAL COMMON STOCKS

(Cost $99,824)

42,862

Convertible Preferred Stocks - 32.0%

 

 

 

 

CONSUMER DISCRETIONARY - 0.8%

Automobiles - 0.5%

Ford Motor Co. Capital Trust II 6.50%

450,000

3,488

General Motors Corp. Series C, 6.25%

1,501,467

3,829

 

7,317

Media - 0.3%

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

10,000

3,588

TOTAL CONSUMER DISCRETIONARY

10,905

CONSUMER STAPLES - 3.5%

Food Products - 3.5%

Archer Daniels Midland Co. 6.25%

600,000

21,204

Bunge Ltd.:

4.875%

237,000

15,047

5.125%

22,000

10,108

 

46,359

Convertible Preferred Stocks - continued

Shares

Value (000s)

ENERGY - 8.0%

Oil, Gas & Consumable Fuels - 8.0%

Chesapeake Energy Corp. 4.50%

135,271

$ 7,863

El Paso Corp. 4.99% (g)

154,990

95,320

Goodrich Petroleum Corp. 5.375%

100,000

3,526

 

106,709

FINANCIALS - 11.1%

Commercial Banks - 6.3%

Huntington Bancshares, Inc. 8.50%

40,000

10,430

KeyCorp Series A, 7.75%

300,000

18,450

Wells Fargo & Co. 7.50%

120,550

55,453

 

84,333

Diversified Financial Services - 4.8%

Bank of America Corp. Series L, 7.25%

178,285

63,291

CIT Group, Inc. Series C, 8.75%

25,300

377

 

63,668

TOTAL FINANCIALS

148,001

MATERIALS - 8.2%

Chemicals - 2.7%

Celanese Corp. 4.25%

2,893,200

36,252

Metals & Mining - 5.5%

Freeport-McMoRan Copper & Gold, Inc.:

5.50%

18,400

14,080

6.75%

1,093,500

59,144

 

73,224

TOTAL MATERIALS

109,476

UTILITIES - 0.4%

Independent Power Producers & Energy Traders - 0.4%

NRG Energy, Inc. Series A, 5.75%

26,800

5,183

TOTAL CONVERTIBLE PREFERRED STOCKS

(Cost $894,235)

426,633

Floating Rate Loans - 0.8%

 

Principal Amount (000s)

Value (000s)

CONSUMER DISCRETIONARY - 0.2%

Media - 0.2%

Education Media and Publishing Group Ltd. Tranche 2LN, term loan 10.7563% 12/12/14 (h)

$ 7,371

$ 2,211

FINANCIALS - 0.6%

Diversified Financial Services - 0.6%

CCO Holdings, LLC Tranche 3LN, term loan 3.9588% 9/6/14 (h)

15,000

8,700

TOTAL FLOATING RATE LOANS

(Cost $18,838)

10,911

Money Market Funds - 2.4%

Shares

 

Fidelity Cash Central Fund, 0.59% (b)

27,131,324

27,131

Fidelity Securities Lending Cash Central Fund, 0.66% (b)(c)

4,942,707

4,943

TOTAL MONEY MARKET FUNDS

(Cost $32,074)

32,074

Cash Equivalents - 0.2%

Maturity Amount (000s)

 

Investments in repurchase agreements in a joint trading account at 0.26%, dated 2/27/09 due 3/2/09 (Collateralized by U.S. Treasury Obligations) #
(Cost $2,451)

$ 2,451

2,451

TOTAL INVESTMENT PORTFOLIO - 99.2%

(Cost $2,344,666)

1,324,229

NET OTHER ASSETS - 0.8%

10,102

NET ASSETS - 100%

$ 1,334,331

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) Non-income producing - Issuer is in default.

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

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

(g) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $392,910,000 or 29.4% of net assets.

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

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

Repurchase Agreement / Counterparty

Value
(Amounts in thousands)

$2,451,000 due 3/02/09 at 0.26%

BNP Paribas Securities Corp.

$ 1,210

Banc of America Securities LLC

451

Barclays Capital, Inc.

643

Deutsche Bank Securities, Inc.

147

 

$ 2,451

Affiliated Central Funds

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

Fund

Income earned
(Amounts in thousands)

Fidelity Cash Central Fund

$ 86

Fidelity Securities Lending Cash Central Fund

14

Total

$ 100

Other Information

The following is a summary of the inputs used, as of February 28, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Investment Valuation section at the end of this listing.

Valuation Inputs at Reporting Date:

Description
(Amounts in thousands)

Total

Level 1

Level 2

Level 3

Investments in Securities

$ 1,324,229

$ 103,816

$ 1,218,202

$ 2,211

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

(Amounts in thousands)

Investments in Securities

Beginning Balance

$ 11,213

Total Realized Gain (Loss)

(7,309)

Total Unrealized Gain (Loss)

2,389

Cost of Purchases

135

Proceeds of Sales

(1,178)

Amortization/Accretion

45

Transfer in/out of Level 3

(3,084)

Ending Balance

$ 2,211

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

Income Tax Information

At February 28, 2009, the aggregate cost of investment securities for income tax purposes was $2,340,758,000. Net unrealized depreciation aggregated $1,016,529,000, of which $9,058,000 related to appreciated investment securities and $1,025,587,000 related to depreciated investment securities.

Investment Valuation

Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Security transactions are accounted for as of trade date. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.

Debt securities, including restricted securities, 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 available dealer supplied prices. A significant portion of the Fund's securities are valued at period end by a single source or dealer. 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, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value. Actual prices received at disposition may differ.

When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value calculation under these procedures may differ from published prices for the same securities.

The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157). SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:

Level 1 - Quoted prices in active markets for identical securities.

Level 2 - Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others.

Level 3 - Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available.

Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.

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

Quarterly Report

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

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

Quarterly Report

Quarterly Holdings Report

for

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

February 28, 2009 

1.797940.105

EII-QTLY-0409

Investments February 28, 2009 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 96.1%

Shares

Value (000s)

CONSUMER DISCRETIONARY - 13.9%

Auto Components - 0.9%

Gentex Corp.

565,800

$ 4,526

Johnson Controls, Inc.

1,450,000

16,501

Magna International, Inc. Class A

223,600

5,737

The Goodyear Tire & Rubber Co. (a)

2,228,400

9,894

 

36,658

Automobiles - 0.3%

Fiat SpA

943,300

4,218

Harley-Davidson, Inc. (d)

807,558

8,156

 

12,374

Diversified Consumer Services - 0.9%

H&R Block, Inc.

1,745,400

33,337

Hotels, Restaurants & Leisure - 0.4%

Starbucks Corp. (a)

1,379,200

12,620

Starwood Hotels & Resorts Worldwide, Inc.

245,300

2,843

 

15,463

Household Durables - 2.7%

Black & Decker Corp.

273,100

6,464

Lennar Corp. Class A

334,900

2,237

Newell Rubbermaid, Inc.

1,181,000

6,673

The Stanley Works

279,800

7,487

Toll Brothers, Inc. (a)

4,600,000

72,910

Whirlpool Corp.

509,200

11,320

 

107,091

Media - 3.3%

Comcast Corp. Class A

2,378,600

31,065

Interpublic Group of Companies, Inc. (a)

901,400

3,434

Liberty Global, Inc. Class A (a)

405,734

4,978

McGraw-Hill Companies, Inc.

198,100

3,909

Scripps Networks Interactive, Inc. Class A

768,800

15,307

The Walt Disney Co.

848,800

14,234

Time Warner Cable, Inc. (a)

530,600

9,673

Time Warner, Inc.

4,897,853

37,371

Viacom, Inc. Class B (non-vtg.) (a)

306,900

4,723

Virgin Media, Inc.

912,900

4,364

 

129,058

Multiline Retail - 2.1%

JCPenney Co., Inc.

484,900

7,434

Kohl's Corp. (a)

1,168,371

41,057

Common Stocks - continued

Shares

Value (000s)

CONSUMER DISCRETIONARY - continued

Multiline Retail - continued

Macy's, Inc.

837,319

$ 6,590

Target Corp.

930,400

26,340

 

81,421

Specialty Retail - 3.3%

Home Depot, Inc.

2,800,000

58,492

Lowe's Companies, Inc.

856,700

13,570

PetSmart, Inc.

454,100

9,100

RadioShack Corp.

355,800

2,608

Staples, Inc.

1,783,700

28,450

Tiffany & Co., Inc. (d)

519,000

9,882

Williams-Sonoma, Inc.

665,300

5,808

 

127,910

Textiles, Apparel & Luxury Goods - 0.0%

Liz Claiborne, Inc.

523,482

1,461

TOTAL CONSUMER DISCRETIONARY

544,773

CONSUMER STAPLES - 5.7%

Beverages - 1.0%

Carlsberg AS Series B

374,400

12,617

Heineken NV (Bearer)

188,500

5,032

The Coca-Cola Co.

545,200

22,271

 

39,920

Food & Staples Retailing - 1.3%

CVS Caremark Corp.

474,800

12,221

Wal-Mart Stores, Inc.

672,000

33,089

Winn-Dixie Stores, Inc. (a)

433,600

4,193

 

49,503

Food Products - 1.1%

Hershey Co.

33,400

1,125

Kraft Foods, Inc. Class A

364,890

8,312

Nestle SA (Reg.)

666,265

21,779

Tyson Foods, Inc. Class A

1,464,769

12,348

 

43,564

Household Products - 1.1%

Kimberly-Clark Corp.

410,900

19,357

Procter & Gamble Co.

527,800

25,424

 

44,781

Common Stocks - continued

Shares

Value (000s)

CONSUMER STAPLES - continued

Personal Products - 0.3%

Avon Products, Inc.

548,592

$ 9,650

Tobacco - 0.9%

Philip Morris International, Inc.

1,059,059

35,447

TOTAL CONSUMER STAPLES

222,865

ENERGY - 18.9%

Energy Equipment & Services - 2.7%

BJ Services Co.

388,100

3,753

Halliburton Co.

804,100

13,115

Nabors Industries Ltd. (a)

921,600

8,949

Noble Corp.

1,376,500

33,848

Pride International, Inc. (a)

321,400

5,541

Schlumberger Ltd. (NY Shares)

1,032,200

39,286

 

104,492

Oil, Gas & Consumable Fuels - 16.2%

Anadarko Petroleum Corp.

175,898

6,148

Apache Corp.

396,100

23,406

Chesapeake Energy Corp.

342,800

5,361

Chevron Corp.

2,447,600

148,594

ConocoPhillips

2,200,000

82,170

CONSOL Energy, Inc.

222,500

6,063

Devon Energy Corp.

142,786

6,235

EOG Resources, Inc.

482,486

24,144

Exxon Mobil Corp.

2,705,700

183,718

Hess Corp.

506,500

27,700

Occidental Petroleum Corp.

770,295

39,955

Peabody Energy Corp.

213,300

5,049

Royal Dutch Shell PLC:

Class A sponsored ADR

939,100

41,292

Class B ADR (d)

235,100

9,987

Total SA sponsored ADR

366,618

17,304

Williams Companies, Inc.

770,100

8,702

 

635,828

TOTAL ENERGY

740,320

FINANCIALS - 17.3%

Capital Markets - 5.7%

Bank of New York Mellon Corp.

2,557,424

56,698

Common Stocks - continued

Shares

Value (000s)

FINANCIALS - continued

Capital Markets - continued

Credit Suisse Group sponsored ADR

672,900

$ 16,257

Deutsche Bank AG (NY Shares)

210,100

5,370

Goldman Sachs Group, Inc.

560,000

51,005

Morgan Stanley

3,600,000

70,344

State Street Corp.

357,900

9,044

T. Rowe Price Group, Inc.

243,400

5,535

UBS AG (NY Shares)

1,091,300

9,876

 

224,129

Commercial Banks - 4.1%

Huntington Bancshares, Inc. (d)

385,900

563

KeyCorp

1,385,174

9,710

Mitsubishi UFJ Financial Group, Inc. sponsored ADR

3,591,900

16,056

PNC Financial Services Group, Inc. (d)

1,391,000

38,030

U.S. Bancorp, Delaware

974,000

13,938

Wells Fargo & Co.

6,600,000

79,860

 

158,157

Consumer Finance - 0.2%

Capital One Financial Corp.

270,900

3,264

SLM Corp. (a)

867,281

3,989

 

7,253

Diversified Financial Services - 4.7%

Bank of America Corp.

8,717,016

34,432

CIT Group, Inc.

1,330,351

3,259

Citigroup, Inc.

5,700,000

8,550

CME Group, Inc.

32,300

5,892

JPMorgan Chase & Co.

5,800,000

132,530

 

184,663

Insurance - 2.0%

ACE Ltd.

680,000

24,827

Allianz AG sponsored ADR

423,600

2,804

American International Group, Inc.

916,700

385

Hartford Financial Services Group, Inc.

600,700

3,664

MBIA, Inc. (a)

300,630

824

MetLife, Inc.

326,200

6,022

Montpelier Re Holdings Ltd.

1,094,500

13,900

The Travelers Companies, Inc.

753,133

27,226

 

79,652

Common Stocks - continued

Shares

Value (000s)

FINANCIALS - continued

Real Estate Investment Trusts - 0.4%

HCP, Inc.

572,600

$ 10,461

Senior Housing Properties Trust (SBI)

472,882

5,968

 

16,429

Thrifts & Mortgage Finance - 0.2%

New York Community Bancorp, Inc.

779,260

7,676

TOTAL FINANCIALS

677,959

HEALTH CARE - 9.1%

Biotechnology - 0.7%

Amgen, Inc. (a)

606,900

29,696

Health Care Equipment & Supplies - 0.7%

Boston Scientific Corp. (a)

1,329,105

9,330

Covidien Ltd.

544,000

17,228

 

26,558

Health Care Providers & Services - 0.1%

UnitedHealth Group, Inc.

183,260

3,601

Pharmaceuticals - 7.6%

Bristol-Myers Squibb Co.

1,046,046

19,258

Johnson & Johnson

1,296,300

64,815

Merck & Co., Inc.

1,546,700

37,430

Pfizer, Inc.

5,953,100

73,283

Schering-Plough Corp.

1,404,600

24,426

Wyeth

1,921,800

78,448

 

297,660

TOTAL HEALTH CARE

357,515

INDUSTRIALS - 8.6%

Aerospace & Defense - 2.8%

General Dynamics Corp.

167,083

7,322

Honeywell International, Inc.

1,663,000

44,618

Spirit AeroSystems Holdings, Inc. Class A (a)

756,800

7,507

The Boeing Co.

514,717

16,183

United Technologies Corp.

840,428

34,315

 

109,945

Building Products - 0.2%

Masco Corp.

1,207,900

6,221

Common Stocks - continued

Shares

Value (000s)

INDUSTRIALS - continued

Commercial Services & Supplies - 0.2%

Avery Dennison Corp.

399,500

$ 8,050

Electrical Equipment - 0.0%

Regal-Beloit Corp.

32,700

938

Industrial Conglomerates - 3.1%

3M Co.

497,771

22,629

General Electric Co.

4,712,100

40,100

Rheinmetall AG

287,642

9,401

Siemens AG sponsored ADR

581,400

29,430

Textron, Inc.

1,232,000

6,961

Tyco International Ltd.

621,400

12,459

 

120,980

Machinery - 1.8%

Caterpillar, Inc.

90,000

2,215

Cummins, Inc.

365,700

7,607

Danaher Corp.

227,100

11,528

Eaton Corp.

382,200

13,817

Illinois Tool Works, Inc.

288,772

8,028

Ingersoll-Rand Co. Ltd. Class A

585,553

8,303

Kennametal, Inc.

445,800

7,275

SPX Corp.

275,500

12,199

 

70,972

Professional Services - 0.1%

Equifax, Inc.

245,487

5,278

Road & Rail - 0.4%

Burlington Northern Santa Fe Corp.

88,500

5,201

Union Pacific Corp.

265,200

9,950

 

15,151

TOTAL INDUSTRIALS

337,535

INFORMATION TECHNOLOGY - 9.0%

Communications Equipment - 1.0%

Cisco Systems, Inc. (a)

2,253,800

32,838

Motorola, Inc.

2,080,892

7,325

 

40,163

Computers & Peripherals - 2.0%

EMC Corp. (a)

328,200

3,446

Hewlett-Packard Co.

1,132,855

32,887

Common Stocks - continued

Shares

Value (000s)

INFORMATION TECHNOLOGY - continued

Computers & Peripherals - continued

International Business Machines Corp.

446,000

$ 41,045

Seagate Technology

258,578

1,112

 

78,490

Electronic Equipment & Components - 0.2%

Tyco Electronics Ltd.

835,971

7,925

Internet Software & Services - 0.2%

VeriSign, Inc. (a)

398,300

7,699

IT Services - 0.8%

MoneyGram International, Inc. (a)

340,342

476

The Western Union Co.

1,185,000

13,225

Visa, Inc.

294,200

16,684

 

30,385

Office Electronics - 0.1%

Xerox Corp.

1,005,780

5,210

Semiconductors & Semiconductor Equipment - 2.8%

Analog Devices, Inc.

868,993

16,198

Applied Materials, Inc.

3,100,000

28,551

Intel Corp.

3,495,300

44,530

Micron Technology, Inc. (a)

802,300

2,583

National Semiconductor Corp.

1,607,900

17,526

 

109,388

Software - 1.9%

CA, Inc.

552,441

9,364

Microsoft Corp.

1,494,254

24,132

Oracle Corp. (a)

1,600,000

24,864

Symantec Corp. (a)

1,029,833

14,243

 

72,603

TOTAL INFORMATION TECHNOLOGY

351,863

MATERIALS - 1.2%

Chemicals - 0.7%

E.I. du Pont de Nemours & Co.

782,009

14,670

H.B. Fuller Co.

314,400

3,584

Linde AG

124,400

7,966

 

26,220

Metals & Mining - 0.5%

Alcoa, Inc.

1,207,232

7,521

Common Stocks - continued

Shares

Value (000s)

MATERIALS - continued

Metals & Mining - continued

Commercial Metals Co.

496,300

$ 5,067

Nucor Corp.

249,600

8,399

 

20,987

TOTAL MATERIALS

47,207

TELECOMMUNICATION SERVICES - 8.4%

Diversified Telecommunication Services - 7.7%

AT&T, Inc.

7,670,400

182,325

Qwest Communications International, Inc.

8,350,400

28,308

Verizon Communications, Inc.

3,198,800

91,262

 

301,895

Wireless Telecommunication Services - 0.7%

Sprint Nextel Corp. (a)

3,645,347

11,993

Vodafone Group PLC sponsored ADR

814,900

14,464

 

26,457

TOTAL TELECOMMUNICATION SERVICES

328,352

UTILITIES - 4.0%

Electric Utilities - 2.0%

Allegheny Energy, Inc.

1,054,100

24,919

Entergy Corp.

400,500

26,990

Exelon Corp.

574,401

27,123

 

79,032

Independent Power Producers & Energy Traders - 0.4%

AES Corp. (a)

2,190,900

13,803

Multi-Utilities - 1.6%

Public Service Enterprise Group, Inc.

1,348,900

36,811

Wisconsin Energy Corp.

678,500

27,018

 

63,829

TOTAL UTILITIES

156,664

TOTAL COMMON STOCKS

(Cost $4,985,537)

3,765,053

Convertible Preferred Stocks - 0.8%

Shares

Value (000s)

FINANCIALS - 0.2%

Commercial Banks - 0.1%

Fifth Third Bancorp 8.50%

36,700

$ 1,107

Huntington Bancshares, Inc. 8.50%

7,600

1,982

 

3,089

Diversified Financial Services - 0.1%

Bank of America Corp. Series L, 7.25%

14,200

5,041

Insurance - 0.0%

American International Group, Inc. Series A, 8.50%

466,700

2,151

TOTAL FINANCIALS

10,281

HEALTH CARE - 0.3%

Pharmaceuticals - 0.3%

Schering-Plough Corp. 6.00%

76,000

12,922

MATERIALS - 0.3%

Metals & Mining - 0.3%

Freeport-McMoRan Copper & Gold, Inc. 6.75%

190,100

10,282

TOTAL CONVERTIBLE PREFERRED STOCKS

(Cost $68,639)

33,485

Money Market Funds - 4.4%

 

 

 

 

Fidelity Cash Central Fund, 0.59% (b)

113,256,578

113,257

Fidelity Securities Lending Cash Central Fund, 0.66% (b)(c)

58,030,400

58,030

TOTAL MONEY MARKET FUNDS

(Cost $171,287)

171,287

TOTAL INVESTMENT PORTFOLIO - 101.3%

(Cost $5,225,463)

3,969,825

NET OTHER ASSETS - (1.3)%

(50,230)

NET ASSETS - 100%

$ 3,919,595

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.

Affiliated Central Funds

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

Fund

Income earned
(Amounts in thousands)

Fidelity Cash Central Fund

$ 64

Fidelity Securities Lending Cash Central Fund

93

Total

$ 157

Other Information

The following is a summary of the inputs used, as of February 28, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section at the end of this listing.

Valuation Inputs at Reporting Date:

Description
(Amounts in thousands)

Total

Level 1

Level 2

Level 3

Investments in Securities

$ 3,969,825

$ 3,877,309

$ 92,516

$ -

Income Tax Information

At February 28, 2009, the aggregate cost of investment securities for income tax purposes was $5,316,205,000. Net unrealized depreciation aggregated $1,346,380,000, of which $131,830,000 related to appreciated investment securities and $1,478,210,000 related to depreciated investment securities.

Investment Valuation

Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Security transactions are accounted for as of trade date. 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, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.

When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value calculation under these procedures may differ from published prices for the same securities.

The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157). SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:

Level 1 - Quoted prices in active markets for identical securities.

Level 2 - Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others.

Level 3 - Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available.

Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.

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

Quarterly Report

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

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

Quarterly Report

Quarterly Holdings Report

for

Fidelity ® Independence Fund
Independence Class K

February 28, 2009 

1.797942.105

FRE-QTLY-0409

Investments February 28, 2009 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 99.3%

Shares

Value (000s)

CONSUMER DISCRETIONARY - 7.5%

Auto Components - 0.1%

The Goodyear Tire & Rubber Co. (a)

1,000,000

$ 4,440

Distributors - 0.2%

Genuine Parts Co.

200,000

5,628

Diversified Consumer Services - 2.5%

Apollo Group, Inc. Class A (non-vtg.) (a)

550,000

39,875

DeVry, Inc.

600,000

31,170

 

71,045

Hotels, Restaurants & Leisure - 0.4%

Darden Restaurants, Inc.

250,000

6,785

Krispy Kreme Doughnuts, Inc. warrants 3/2/12 (a)

11,563

1

Starwood Hotels & Resorts Worldwide, Inc.

500,000

5,795

 

12,581

Household Durables - 0.4%

Gafisa SA sponsored ADR (d)

1,239,900

10,242

Media - 2.1%

Comcast Corp. Class A (special) (non-vtg.)

2,000,000

24,300

The DIRECTV Group, Inc. (a)

1,800,000

35,892

 

60,192

Multiline Retail - 0.8%

Target Corp.

800,000

22,648

Specialty Retail - 1.0%

Best Buy Co., Inc.

450,000

12,969

Lowe's Companies, Inc.

1,000,000

15,840

 

28,809

TOTAL CONSUMER DISCRETIONARY

215,585

CONSUMER STAPLES - 8.7%

Beverages - 0.3%

The Coca-Cola Co.

200,000

8,170

Food & Staples Retailing - 5.2%

Costco Wholesale Corp.

1,200,000

50,808

Wal-Mart Stores, Inc.

1,964,700

96,742

 

147,550

Household Products - 1.8%

Procter & Gamble Co.

1,078,200

51,937

Common Stocks - continued

Shares

Value (000s)

CONSUMER STAPLES - continued

Tobacco - 1.4%

Philip Morris International, Inc.

1,200,000

$ 40,164

TOTAL CONSUMER STAPLES

247,821

ENERGY - 14.8%

Energy Equipment & Services - 2.3%

Noble Corp.

600,000

14,754

Transocean Ltd. (a)

850,000

50,805

 

65,559

Oil, Gas & Consumable Fuels - 12.5%

Apache Corp.

125,000

7,386

Cabot Oil & Gas Corp.

725,200

14,772

Chesapeake Energy Corp.

2,010,400

31,443

Chevron Corp.

600,000

36,426

China Shenhua Energy Co. Ltd. (H Shares)

4,885,000

9,440

El Paso Corp.

3,000,000

20,250

Exxon Mobil Corp.

1,564,900

106,254

Hess Corp.

500,000

27,345

Occidental Petroleum Corp.

400,000

20,748

Petroleo Brasileiro SA - Petrobras sponsored ADR

1,400,000

38,822

PT Bumi Resources Tbk

20,000,000

1,230

Quicksilver Resources, Inc. (a)

667,800

4,007

Southwestern Energy Co. (a)

1,100,000

31,647

Ultra Petroleum Corp. (a)

233,079

8,190

 

357,960

TOTAL ENERGY

423,519

FINANCIALS - 13.9%

Capital Markets - 4.6%

Bank of New York Mellon Corp.

600,000

13,302

Goldman Sachs Group, Inc.

600,000

54,648

Morgan Stanley

2,500,000

48,850

State Street Corp.

650,000

16,426

 

133,226

Commercial Banks - 2.7%

Industrial & Commercial Bank of China

8,700,000

3,504

PNC Financial Services Group, Inc.

750,000

20,505

Common Stocks - continued

Shares

Value (000s)

FINANCIALS - continued

Commercial Banks - continued

Uniao de Bancos Brasileiros SA (Unibanco) GDR

79,100

$ 4,139

Wells Fargo & Co.

4,100,000

49,610

 

77,758

Consumer Finance - 0.2%

SLM Corp. (a)

1,100,000

5,060

Diversified Financial Services - 2.7%

Apollo Global Management LLC (a)(e)

1,703,400

3,407

Bank of America Corp.

4,000,000

15,800

JPMorgan Chase & Co.

2,500,000

57,125

 

76,332

Insurance - 3.7%

ACE Ltd.

500,000

18,255

China Life Insurance Co. Ltd. ADR (d)

1,000,000

41,590

Everest Re Group Ltd.

200,000

13,026

MBIA, Inc. (a)(d)

1,000,000

2,740

RenaissanceRe Holdings Ltd.

449,973

20,262

The Travelers Companies, Inc.

300,000

10,845

 

106,718

TOTAL FINANCIALS

399,094

HEALTH CARE - 26.4%

Biotechnology - 11.5%

Amgen, Inc. (a)

150,000

7,340

Biogen Idec, Inc. (a)

800,000

36,832

Celgene Corp. (a)

483,300

21,618

Cephalon, Inc. (a)(d)

800,000

52,472

Genentech, Inc. (a)

300,000

25,665

Genzyme Corp. (a)

800,000

48,744

Gilead Sciences, Inc. (a)

1,800,000

80,640

Myriad Genetics, Inc. (a)

350,000

27,598

Vertex Pharmaceuticals, Inc. (a)

900,000

27,207

 

328,116

Health Care Equipment & Supplies - 3.6%

Baxter International, Inc.

1,100,000

56,001

Covidien Ltd.

1,500,000

47,505

 

103,506

Health Care Providers & Services - 3.6%

Express Scripts, Inc. (a)

1,400,000

70,420

Common Stocks - continued

Shares

Value (000s)

HEALTH CARE - continued

Health Care Providers & Services - continued

Humana, Inc. (a)

600,000

$ 14,202

Medco Health Solutions, Inc. (a)

400,000

16,232

Tenet Healthcare Corp. (a)

2,000,000

2,220

 

103,074

Pharmaceuticals - 7.7%

Abbott Laboratories

700,000

33,138

Elan Corp. PLC sponsored ADR (a)

1,640,800

10,140

Johnson & Johnson

600,000

30,000

Merck & Co., Inc.

2,300,000

55,660

Pfizer, Inc.

4,500,000

55,395

Schering-Plough Corp.

1,800,000

31,302

Wyeth

100,000

4,082

 

219,717

TOTAL HEALTH CARE

754,413

INDUSTRIALS - 4.6%

Aerospace & Defense - 1.1%

AeroVironment, Inc. (a)(d)

450,000

14,049

Northrop Grumman Corp.

300,000

11,208

The Boeing Co.

200,000

6,288

 

31,545

Airlines - 3.0%

AMR Corp. (a)

1,500,000

6,135

Continental Airlines, Inc. Class B (a)

2,200,000

22,044

Delta Air Lines, Inc. (a)

11,296,875

56,823

US Airways Group, Inc. (a)

500,000

1,425

 

86,427

Construction & Engineering - 0.0%

China Communications Construction Co. Ltd. (H Shares)

2,000,000

1,900

Electrical Equipment - 0.4%

First Solar, Inc. (a)

100,000

10,574

Industrial Conglomerates - 0.1%

Textron, Inc.

500,000

2,825

TOTAL INDUSTRIALS

133,271

Common Stocks - continued

Shares

Value (000s)

INFORMATION TECHNOLOGY - 9.7%

Communications Equipment - 2.1%

Cisco Systems, Inc. (a)

1,518,800

$ 22,129

QUALCOMM, Inc.

500,000

16,715

Research In Motion Ltd. (a)

300,000

11,982

Starent Networks Corp. (a)

600,000

9,486

 

60,312

Computers & Peripherals - 1.6%

Apple, Inc. (a)

514,200

45,923

Electronic Equipment & Components - 0.2%

Itron, Inc. (a)

100,000

4,466

Internet Software & Services - 1.0%

Equinix, Inc. (a)

300,000

13,923

Google, Inc. Class A (sub. vtg.) (a)

25,000

8,450

Omniture, Inc. (a)

600,000

6,816

 

29,189

IT Services - 3.1%

Cognizant Technology Solutions Corp. Class A (a)

500,000

9,200

Lender Processing Services, Inc.

241,600

6,328

MasterCard, Inc. Class A (d)

250,000

39,508

Visa, Inc.

600,000

34,026

 

89,062

Semiconductors & Semiconductor Equipment - 0.4%

Entropic Communications, Inc. (a)

626,000

357

Intel Corp.

500,000

6,370

Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR

800,000

6,032

 

12,759

Software - 1.3%

Nintendo Co. Ltd.

101,700

28,679

Oracle Corp. (a)

500,000

7,770

 

36,449

TOTAL INFORMATION TECHNOLOGY

278,160

MATERIALS - 8.0%

Chemicals - 3.7%

FMC Corp.

800,000

32,344

Intrepid Potash, Inc.

200,000

4,488

Monsanto Co.

40,401

3,081

Potash Corp. of Saskatchewan, Inc.

98,900

8,305

Common Stocks - continued

Shares

Value (000s)

MATERIALS - continued

Chemicals - continued

Terra Industries, Inc.

800,000

$ 20,632

The Mosaic Co.

847,700

36,493

 

105,343

Containers & Packaging - 0.3%

Crown Holdings, Inc. (a)

400,000

8,432

Metals & Mining - 4.0%

Agnico-Eagle Mines Ltd.

326,400

16,408

Barrick Gold Corp.

400,000

12,090

Freeport-McMoRan Copper & Gold, Inc. Class B

550,000

16,731

Goldcorp, Inc.

500,000

14,527

Impala Platinum Holdings Ltd.

920,800

10,806

Newmont Mining Corp.

1,049,000

43,670

 

114,232

TOTAL MATERIALS

228,007

TELECOMMUNICATION SERVICES - 3.2%

Diversified Telecommunication Services - 1.7%

Qwest Communications International, Inc.

1,000,000

3,390

Verizon Communications, Inc.

1,550,000

44,222

 

47,612

Wireless Telecommunication Services - 1.5%

America Movil SAB de CV Series L sponsored ADR

200,000

5,096

China Mobile (Hong Kong) Ltd. sponsored ADR

200,000

8,670

Sprint Nextel Corp. (a)

4,408,743

14,505

TIM Participacoes SA sponsored ADR (non-vtg.)

700,000

9,919

Vivo Participacoes SA sponsored ADR

300,000

4,863

 

43,053

TOTAL TELECOMMUNICATION SERVICES

90,665

UTILITIES - 2.5%

Electric Utilities - 0.2%

Exelon Corp.

150,000

7,083

Gas Utilities - 0.2%

Questar Corp.

200,000

5,766

Independent Power Producers & Energy Traders - 0.7%

NRG Energy, Inc. (a)

1,007,200

19,036

Common Stocks - continued

Shares

Value (000s)

UTILITIES - continued

Multi-Utilities - 1.4%

PG&E Corp.

400,000

$ 15,288

Sempra Energy

400,000

16,628

Wisconsin Energy Corp.

200,000

7,964

 

39,880

TOTAL UTILITIES

71,765

TOTAL COMMON STOCKS

(Cost $3,490,095)

2,842,300

Money Market Funds - 3.3%

 

 

 

 

Fidelity Securities Lending Cash Central Fund, 0.66% (b)(c)
(Cost $92,952)

92,952,425

92,952

TOTAL INVESTMENT PORTFOLIO - 102.6%

(Cost $3,583,047)

2,935,252

NET OTHER ASSETS - (2.6)%

(74,032)

NET ASSETS - 100%

$ 2,861,220

Legend

(a) Non-income producing

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

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

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

(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $3,407,000 or 0.1% of net assets.

Affiliated Central Funds

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

Fund

Income earned
(Amounts in thousands)

Fidelity Cash Central Fund

$ 79

Fidelity Securities Lending Cash Central Fund

188

Total

$ 267

Other Information

The following is a summary of the inputs used, as of February 28, 2009, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section at the end of this listing.

Valuation Inputs at Reporting Date:

Description
(Amounts in thousands)

Total

Level 1

Level 2

Level 3

Investments in Securities

$ 2,935,252

$ 2,890,498

$ 44,754

$ -

Income Tax Information

At February 28, 2009, the aggregate cost of investment securities for income tax purposes was $3,664,860,000. Net unrealized depreciation aggregated $729,608,000, of which $49,108,000 related to appreciated investment securities and $778,716,000 related to depreciated investment securities.

Investment Valuation

Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Security transactions are accounted for as of trade date. 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, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.

When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value calculation under these procedures may differ from published prices for the same securities.

The Fund is subject to the provisions of Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157). SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:

Level 1 - Quoted prices in active markets for identical securities.

Level 2 - Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others.

Level 3 - Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available.

Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.

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

Quarterly Report

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

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

Quarterly Report

Item 2. Controls and Procedures

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

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

Item 3. Exhibits

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

SIGNATURES

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

Fidelity Financial Trust

By:

/s/Kenneth B. Robins

 

Kenneth B. Robins

 

President and Treasurer

 

 

Date:

April 29, 2009

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

By:

/s/Kenneth B. Robins

 

Kenneth B. Robins

 

President and Treasurer

 

 

Date:

April 29, 2009

By:

/s/Christine Reynolds

 

Christine Reynolds

 

Chief Financial Officer

 

 

Date:

April 29, 2009