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:

August 31, 2009

Item 1. Schedule of Investments

Quarterly Holdings Report

for

Fidelity® Convertible Securities Fund

August 31, 2009 

1.805819.105

CVS-QTLY-1009

Investments August 31, 2009 (Unaudited)

Showing Percentage of Net Assets

Corporate Bonds - 52.6%

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - 51.0%

CONSUMER DISCRETIONARY - 4.0%

Auto Components - 0.5%

BorgWarner, Inc. 3.5% 4/15/12

$ 910

$ 1,094

Johnson Controls, Inc. 6.5% 9/30/12

3,850

8,925

 

10,019

Diversified Consumer Services - 0.7%

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

490

898

Regis Corp. 5% 7/15/14

4,230

5,224

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

11,000

9,067

 

15,189

Hotels, Restaurants & Leisure - 1.1%

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

8,000

3,040

WMS Industries, Inc.:

2.75% 7/15/10 (f)

4,000

12,843

2.75% 7/15/10

2,800

8,990

 

24,873

Household Durables - 0.0%

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

590

1,054

Media - 1.2%

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

19,297

18,481

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

10,000

7,292

 

25,773

Specialty Retail - 0.5%

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

3,000

2,327

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

9,533

9,591

 

11,918

TOTAL CONSUMER DISCRETIONARY

88,826

CONSUMER STAPLES - 4.9%

Beverages - 0.7%

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

14,000

15,602

Food & Staples Retailing - 2.7%

Nash-Finch Co. 1.6314% 3/15/35 (d)

34,480

13,994

Rite Aid Corp. 8.5% 5/15/15

9,100

8,179

The Great Atlantic & Pacific Tea Co.:

5.125% 6/15/11

18,000

16,920

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

CONSUMER STAPLES - continued

Food & Staples Retailing - continued

The Great Atlantic & Pacific Tea Co.: - continued

6.75% 12/15/12

$ 12,000

$ 10,320

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

14,000

11,256

 

60,669

Food Products - 1.5%

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

22,250

19,075

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

13,000

13,374

 

32,449

TOTAL CONSUMER STAPLES

108,720

ENERGY - 10.4%

Energy Equipment & Services - 2.1%

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

10,000

10,171

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

10,000

6,463

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

20,000

13,944

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

5,000

4,064

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

4,500

5,157

SESI LLC 1.5% 12/15/26 (d)(f)

7,000

6,169

 

45,968

Oil, Gas & Consumable Fuels - 8.3%

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

30,000

27,219

Chesapeake Energy Corp. 2.5% 5/15/37

50,250

39,386

Goodrich Petroleum Corp. 3.25% 12/1/26

6,000

5,195

Patriot Coal Corp. 3.25% 5/31/13 (f)

6,000

4,530

Peabody Energy Corp. 4.75% 12/15/66

107,250

85,800

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

14,500

14,380

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

7,810

6,707

 

183,217

TOTAL ENERGY

229,185

FINANCIALS - 1.7%

Diversified Financial Services - 1.1%

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

30,000

25,575

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

FINANCIALS - continued

Real Estate Investment Trusts - 0.6%

Ventas, Inc. 3.875% 11/15/11 (f)

$ 12,000

$ 12,533

TOTAL FINANCIALS

38,108

HEALTH CARE - 5.2%

Health Care Equipment & Supplies - 3.5%

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

8,500

9,520

Inverness Medical Innovations, Inc.:

3% 5/15/16 (f)

21,000

21,420

3% 5/15/16

10,000

10,200

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

15,000

13,392

Medtronic, Inc. 1.625% 4/15/13

16,000

15,800

SonoSite, Inc. 3.75% 7/15/14

7,000

6,320

 

76,652

Health Care Providers & Services - 0.2%

Omnicare, Inc. 3.25% 12/15/35

7,000

5,285

Life Sciences Tools & Services - 1.5%

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

4,000

3,755

Fisher Scientific International, Inc.:

2.5% 10/1/23 (f)

3,300

6,324

2.5% 10/1/23

7,400

14,180

Nektar Therapeutics 3.25% 9/28/12

9,000

7,505

 

31,764

TOTAL HEALTH CARE

113,701

INDUSTRIALS - 7.0%

Aerospace & Defense - 0.6%

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

14,000

14,255

Airlines - 1.0%

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

10,000

9,913

UAL Corp.:

4.5% 6/30/21 (f)

10,500

5,224

4.5% 6/30/21

5,000

2,488

US Airways Group, Inc. 7% 9/30/20 (f)

4,810

3,992

 

21,617

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

INDUSTRIALS - continued

Construction & Engineering - 0.4%

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

$ 7,000

$ 7,735

Electrical Equipment - 1.8%

C&D Technologies, Inc.:

5.25% 11/1/25 (f)

4,400

2,767

5.25% 11/1/25

32,596

20,495

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

4,000

1,605

General Cable Corp. 1% 10/15/12 (f)

16,000

13,450

SunPower Corp. 4.75% 4/15/14

2,020

2,263

 

40,580

Industrial Conglomerates - 0.1%

Textron, Inc. 4.5% 5/1/13

1,440

1,975

Machinery - 0.7%

Greenbrier Companies, Inc.:

2.375% 5/15/26 (f)

5,500

3,534

2.375% 5/15/26

8,000

5,140

Terex Corp. 4% 6/1/15

1,090

1,344

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

7,000

4,743

 

14,761

Marine - 1.3%

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

34,000

18,020

Horizon Lines, Inc. 4.25% 8/15/12 (f)

15,000

10,950

 

28,970

Road & Rail - 1.1%

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

18,000

24,962

TOTAL INDUSTRIALS

154,855

INFORMATION TECHNOLOGY - 15.9%

Communications Equipment - 1.4%

JDS Uniphase Corp. 1% 5/15/26 (f)

14,000

11,515

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

3,000

3,000

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

10,000

8,000

Nortel Networks Corp. 2.125% 4/15/14 (c)(f)

10,000

4,000

Symmetricom, Inc. 3.25% 6/15/25

5,214

4,345

 

30,860

Computers & Peripherals - 1.7%

EMC Corp. 1.75% 12/1/13 (f)

17,000

20,102

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

INFORMATION TECHNOLOGY - continued

Computers & Peripherals - continued

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

$ 11,000

$ 7,260

SanDisk Corp. 1% 5/15/13

13,000

9,686

 

37,048

Electronic Equipment & Components - 1.7%

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

4,540

3,914

Itron, Inc. 2.5% 8/1/26

7,000

7,703

Merix Corp.:

4% 5/15/13 (f)

11,250

6,061

4% 5/15/13

7,600

4,095

Newport Corp. 2.5% 2/15/12 (f)

3,750

3,240

SYNNEX Corp. 4% 5/15/18 (f)

10,000

11,584

 

36,597

Internet Software & Services - 0.8%

GSI Commerce, Inc. 2.5% 6/1/27 (f)

10,000

8,463

VeriSign, Inc. 3.25% 8/15/37

10,000

8,191

 

16,654

IT Services - 1.7%

Alliance Data Systems Corp.:

1.75% 8/1/13

14,788

13,196

4.75% 5/15/14 (f)

1,300

1,728

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

8,000

2

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

6,000

6,195

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

16,100

17,509

 

38,630

Semiconductors & Semiconductor Equipment - 8.4%

Advanced Micro Devices, Inc.:

5.75% 8/15/12

40,000

32,150

6% 5/1/15

15,000

9,957

Amkor Technology, Inc. 6% 4/15/14 (f)

10,890

21,805

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

7,000

4,900

Intel Corp.:

2.95% 12/15/35

48,000

42,918

3.25% 8/1/39 (f)

7,000

7,455

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

10,333

1,391

Micron Technology, Inc.:

1.875% 6/1/14

10,000

7,731

4.25% 10/15/13

1,130

1,839

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

INFORMATION TECHNOLOGY - continued

Semiconductors & Semiconductor Equipment - continued

ON Semiconductor Corp.:

1.875% 12/15/25 (f)

$ 3,750

$ 4,809

2.625% 12/15/26

35,330

36,436

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

10,000

11,724

Spansion, Inc. 2.25% 6/15/16 (c)(f)

7,267

1,308

 

184,423

Software - 0.2%

Symantec Corp. 1% 6/15/13

5,000

5,055

TOTAL INFORMATION TECHNOLOGY

349,267

MATERIALS - 0.3%

Metals & Mining - 0.3%

ArcelorMittal SA 5% 5/15/14

2,170

3,018

Newmont Mining Corp. 3% 2/15/12

2,120

2,433

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

860

1,054

 

6,505

TELECOMMUNICATION SERVICES - 1.6%

Diversified Telecommunication Services - 0.8%

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

16,000

11,676

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

6,000

5,415

 

17,091

Wireless Telecommunication Services - 0.8%

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

26,000

18,915

TOTAL TELECOMMUNICATION SERVICES

36,006

TOTAL CONVERTIBLE BONDS

1,125,173

Nonconvertible Bonds - 1.6%

CONSUMER DISCRETIONARY - 0.3%

Auto Components - 0.3%

TRW Automotive, Inc.:

7% 3/15/14 (f)

1,300

1,131

7.25% 3/15/17 (f)

6,230

5,233

 

6,364

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Nonconvertible Bonds - continued

CONSUMER STAPLES - 0.1%

Personal Products - 0.1%

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

$ 3,745

$ 3,534

FINANCIALS - 0.3%

Consumer Finance - 0.3%

GMAC LLC:

7.5% 12/31/13 (f)

4,264

3,539

8% 12/31/18 (f)

3,812

2,783

 

6,322

INFORMATION TECHNOLOGY - 0.9%

Semiconductors & Semiconductor Equipment - 0.9%

Amkor Technology, Inc.:

7.75% 5/15/13

1,995

1,955

9.25% 6/1/16

5,935

5,950

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

20,988

11,619

 

19,524

TOTAL NONCONVERTIBLE BONDS

35,744

TOTAL CORPORATE BONDS

(Cost $1,263,942)

1,160,917

Common Stocks - 10.9%

Shares

 

CONSUMER DISCRETIONARY - 0.9%

Diversified Consumer Services - 0.4%

Service Corp. International

1,143,000

8,092

Hotels, Restaurants & Leisure - 0.5%

Domino's Pizza, Inc. (a)

170,400

1,379

Las Vegas Sands Corp. (a)(e)

628,200

8,958

 

10,337

TOTAL CONSUMER DISCRETIONARY

18,429

ENERGY - 0.2%

Oil, Gas & Consumable Fuels - 0.2%

McMoRan Exploration Co. (a)(e)

500,000

4,170

Common Stocks - continued

Shares

Value (000s)

FINANCIALS - 8.2%

Commercial Banks - 2.8%

Huntington Bancshares, Inc. (e)

5,820,500

$ 26,541

KeyCorp

5,414,100

36,058

 

62,599

Diversified Financial Services - 5.4%

Bank of America Corp.

6,722,385

118,242

Thrifts & Mortgage Finance - 0.0%

Washington Mutual, Inc.

2,959,042

547

TOTAL FINANCIALS

181,388

INFORMATION TECHNOLOGY - 1.4%

Communications Equipment - 0.4%

EMCORE Corp. (a)(e)

172,258

183

Finisar Corp. (a)

9,392,960

8,266

 

8,449

Electronic Equipment & Components - 0.0%

L-1 Identity Solutions, Inc. (a)

100,000

717

Semiconductors & Semiconductor Equipment - 1.0%

Amkor Technology, Inc. (a)

843,200

4,671

ON Semiconductor Corp. (a)

2,169,500

17,508

 

22,179

TOTAL INFORMATION TECHNOLOGY

31,345

UTILITIES - 0.2%

Independent Power Producers & Energy Traders - 0.2%

NRG Energy, Inc. (a)

167,000

4,484

TOTAL COMMON STOCKS

(Cost $209,620)

239,816

Convertible Preferred Stocks - 25.9%

 

 

 

 

CONSUMER DISCRETIONARY - 1.6%

Automobiles - 0.6%

Ford Motor Co. Capital Trust II 6.50%

450,000

13,100

Leisure Equipment & Products - 0.5%

Callaway Golf Co. 7.50% (a)(f)

100,000

11,850

Convertible Preferred Stocks - continued

Shares

Value (000s)

CONSUMER DISCRETIONARY - continued

Media - 0.5%

LodgeNet Entertainment Corp. 10.00% (a)(f)

4,997

$ 9,897

TOTAL CONSUMER DISCRETIONARY

34,847

CONSUMER STAPLES - 2.7%

Food Products - 2.7%

Archer Daniels Midland Co. 6.25%

600,000

23,028

Bunge Ltd.:

4.875%

237,000

21,280

5.125%

22,000

14,393

 

58,701

ENERGY - 4.8%

Oil, Gas & Consumable Fuels - 4.8%

El Paso Corp. 4.99% (f)

119,290

100,638

Goodrich Petroleum Corp. 5.375%

100,000

4,455

 

105,093

FINANCIALS - 6.9%

Commercial Banks - 4.7%

Huntington Bancshares, Inc. 8.50%

2,100

1,663

Wells Fargo & Co. 7.50%

120,550

102,769

 

104,432

Diversified Financial Services - 1.8%

Bank of America Corp. Series L, 7.25%

47,085

40,634

Insurance - 0.4%

Assured Guaranty Ltd. 8.50%

100,000

8,125

TOTAL FINANCIALS

153,191

MATERIALS - 9.9%

Chemicals - 4.1%

Celanese Corp. 4.25%

2,750,500

90,464

Convertible Preferred Stocks - continued

Shares

Value (000s)

MATERIALS - continued

Metals & Mining - 5.8%

Freeport-McMoRan Copper & Gold, Inc.:

5.50%

18,400

$ 24,987

6.75%

1,093,500

103,646

 

128,633

TOTAL MATERIALS

219,097

TOTAL CONVERTIBLE PREFERRED STOCKS

(Cost $628,443)

570,929

Floating Rate Loans - 0.7%

 

Principal Amount
(000s)

 

CONSUMER DISCRETIONARY - 0.1%

Media - 0.1%

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

$ 7,822

1,721

FINANCIALS - 0.3%

Diversified Financial Services - 0.3%

CCO Holdings, LLC Tranche 3LN, term loan 6.75% 9/6/14 (g)

9,000

7,560

MATERIALS - 0.3%

Chemicals - 0.3%

Georgia Gulf Corp. term loan 9.4114% 10/3/13 (g)

6,598

6,334

TOTAL FLOATING RATE LOANS

(Cost $18,104)

15,615

Money Market Funds - 10.2%

Shares

Value (000s)

Fidelity Cash Central Fund, 0.33% (h)

203,669,092

$ 203,669

Fidelity Securities Lending Cash Central Fund, 0.23% (b)(h)

20,830,800

20,831

TOTAL MONEY MARKET FUNDS

(Cost $224,500)

224,500

TOTAL INVESTMENT PORTFOLIO - 100.3%

(Cost $2,344,609)

2,211,777

NET OTHER ASSETS - (0.3)%

(6,248)

NET ASSETS - 100%

$ 2,205,529

Legend

(a) Non-income producing

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

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

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

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

(f) 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 $481,430,000 or 21.8% of net assets.

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

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

Affiliated Central Funds

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

Fund

Income earned
(Amounts in thousands)

Fidelity Cash Central Fund

$ 256

Fidelity Securities Lending Cash Central Fund

112

Total

$ 368

Other Information

The following is a summary of the inputs used, as of August 31, 2009, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs and their aggregation into the levels used in the tables below please refer to the Investment Valuation section at the end of this listing.

Valuation Inputs at Reporting Date:

Description
(Amounts in thousands)

Total

Level 1

Level 2

Level 3

Investments in Securities:

Equities:

Consumer Discretionary

$ 53,276

$ 18,429

$ 34,847

$ -

Consumer Staples

58,701

-

58,701

-

Energy

109,263

4,170

105,093

-

Financials

334,579

326,454

8,125

-

Information Technology

31,345

31,345

-

-

Materials

219,097

-

219,097

-

Utilities

4,484

4,484

-

-

Corporate Bonds

1,160,917

-

1,159,526

1,391

Floating Rate Loans

15,615

-

15,615

-

Money Market Funds

224,500

224,500

-

-

Total Investments in Securities:

$ 2,211,777

$ 609,382

$ 1,601,004

$ 1,391

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

Investments in Securities
(Amounts in thousands)

 

Beginning Balance

$ 11,213

Total Realized Gain (Loss)

(7,309)

Total Unrealized Gain (Loss)

1,637

Cost of Purchases

1,977

Proceeds of Sales

(1,178)

Amortization/Accretion

764

Transfer in/out of Level 3

(5,713)

Ending Balance

$ 1,391

The change in unrealized gain (loss) attributable to Level 3 securities at August 31, 2009

$ (666)

The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations.

Income Tax Information

At August 31, 2009, the aggregate cost of investment securities for income tax purposes was $2,335,059,000. Net unrealized depreciation aggregated $123,282,000, of which $181,149,000 related to appreciated investment securities and $304,431,000 related to depreciated investment securities.

Investment Valuation

Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Security transactions are accounted for as of trade date. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. Generally Accepted Accounting Principles (GAAP) establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are classified into three levels. Level 1 includes readily available unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes observable inputs other than quoted prices included in Level 1 that are observable either directly or indirectly. Level 3 includes unobservable inputs when market prices are not readily available or reliable. Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy. Valuation techniques of the Fund's major categories of assets and liabilities are as follows.

Debt securities, including restricted securities, are valued based on quotations received from dealers who make markets in such securities or by independent pricing services. For corporate bonds and floating rate loans pricing services generally utilize matrix pricing which considers 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, including securities backed by subprime mortgage loans, 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.

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

August 31, 2009

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

1.884073.100

ACVS-QTLY-1009

Investments August 31, 2009 (Unaudited)

Showing Percentage of Net Assets

Corporate Bonds - 52.6%

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - 51.0%

CONSUMER DISCRETIONARY - 4.0%

Auto Components - 0.5%

BorgWarner, Inc. 3.5% 4/15/12

$ 910

$ 1,094

Johnson Controls, Inc. 6.5% 9/30/12

3,850

8,925

 

10,019

Diversified Consumer Services - 0.7%

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

490

898

Regis Corp. 5% 7/15/14

4,230

5,224

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

11,000

9,067

 

15,189

Hotels, Restaurants & Leisure - 1.1%

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

8,000

3,040

WMS Industries, Inc.:

2.75% 7/15/10 (f)

4,000

12,843

2.75% 7/15/10

2,800

8,990

 

24,873

Household Durables - 0.0%

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

590

1,054

Media - 1.2%

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

19,297

18,481

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

10,000

7,292

 

25,773

Specialty Retail - 0.5%

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

3,000

2,327

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

9,533

9,591

 

11,918

TOTAL CONSUMER DISCRETIONARY

88,826

CONSUMER STAPLES - 4.9%

Beverages - 0.7%

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

14,000

15,602

Food & Staples Retailing - 2.7%

Nash-Finch Co. 1.6314% 3/15/35 (d)

34,480

13,994

Rite Aid Corp. 8.5% 5/15/15

9,100

8,179

The Great Atlantic & Pacific Tea Co.:

5.125% 6/15/11

18,000

16,920

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

CONSUMER STAPLES - continued

Food & Staples Retailing - continued

The Great Atlantic & Pacific Tea Co.: - continued

6.75% 12/15/12

$ 12,000

$ 10,320

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

14,000

11,256

 

60,669

Food Products - 1.5%

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

22,250

19,075

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

13,000

13,374

 

32,449

TOTAL CONSUMER STAPLES

108,720

ENERGY - 10.4%

Energy Equipment & Services - 2.1%

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

10,000

10,171

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

10,000

6,463

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

20,000

13,944

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

5,000

4,064

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

4,500

5,157

SESI LLC 1.5% 12/15/26 (d)(f)

7,000

6,169

 

45,968

Oil, Gas & Consumable Fuels - 8.3%

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

30,000

27,219

Chesapeake Energy Corp. 2.5% 5/15/37

50,250

39,386

Goodrich Petroleum Corp. 3.25% 12/1/26

6,000

5,195

Patriot Coal Corp. 3.25% 5/31/13 (f)

6,000

4,530

Peabody Energy Corp. 4.75% 12/15/66

107,250

85,800

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

14,500

14,380

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

7,810

6,707

 

183,217

TOTAL ENERGY

229,185

FINANCIALS - 1.7%

Diversified Financial Services - 1.1%

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

30,000

25,575

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

FINANCIALS - continued

Real Estate Investment Trusts - 0.6%

Ventas, Inc. 3.875% 11/15/11 (f)

$ 12,000

$ 12,533

TOTAL FINANCIALS

38,108

HEALTH CARE - 5.2%

Health Care Equipment & Supplies - 3.5%

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

8,500

9,520

Inverness Medical Innovations, Inc.:

3% 5/15/16 (f)

21,000

21,420

3% 5/15/16

10,000

10,200

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

15,000

13,392

Medtronic, Inc. 1.625% 4/15/13

16,000

15,800

SonoSite, Inc. 3.75% 7/15/14

7,000

6,320

 

76,652

Health Care Providers & Services - 0.2%

Omnicare, Inc. 3.25% 12/15/35

7,000

5,285

Life Sciences Tools & Services - 1.5%

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

4,000

3,755

Fisher Scientific International, Inc.:

2.5% 10/1/23 (f)

3,300

6,324

2.5% 10/1/23

7,400

14,180

Nektar Therapeutics 3.25% 9/28/12

9,000

7,505

 

31,764

TOTAL HEALTH CARE

113,701

INDUSTRIALS - 7.0%

Aerospace & Defense - 0.6%

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

14,000

14,255

Airlines - 1.0%

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

10,000

9,913

UAL Corp.:

4.5% 6/30/21 (f)

10,500

5,224

4.5% 6/30/21

5,000

2,488

US Airways Group, Inc. 7% 9/30/20 (f)

4,810

3,992

 

21,617

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

INDUSTRIALS - continued

Construction & Engineering - 0.4%

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

$ 7,000

$ 7,735

Electrical Equipment - 1.8%

C&D Technologies, Inc.:

5.25% 11/1/25 (f)

4,400

2,767

5.25% 11/1/25

32,596

20,495

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

4,000

1,605

General Cable Corp. 1% 10/15/12 (f)

16,000

13,450

SunPower Corp. 4.75% 4/15/14

2,020

2,263

 

40,580

Industrial Conglomerates - 0.1%

Textron, Inc. 4.5% 5/1/13

1,440

1,975

Machinery - 0.7%

Greenbrier Companies, Inc.:

2.375% 5/15/26 (f)

5,500

3,534

2.375% 5/15/26

8,000

5,140

Terex Corp. 4% 6/1/15

1,090

1,344

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

7,000

4,743

 

14,761

Marine - 1.3%

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

34,000

18,020

Horizon Lines, Inc. 4.25% 8/15/12 (f)

15,000

10,950

 

28,970

Road & Rail - 1.1%

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

18,000

24,962

TOTAL INDUSTRIALS

154,855

INFORMATION TECHNOLOGY - 15.9%

Communications Equipment - 1.4%

JDS Uniphase Corp. 1% 5/15/26 (f)

14,000

11,515

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

3,000

3,000

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

10,000

8,000

Nortel Networks Corp. 2.125% 4/15/14 (c)(f)

10,000

4,000

Symmetricom, Inc. 3.25% 6/15/25

5,214

4,345

 

30,860

Computers & Peripherals - 1.7%

EMC Corp. 1.75% 12/1/13 (f)

17,000

20,102

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

INFORMATION TECHNOLOGY - continued

Computers & Peripherals - continued

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

$ 11,000

$ 7,260

SanDisk Corp. 1% 5/15/13

13,000

9,686

 

37,048

Electronic Equipment & Components - 1.7%

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

4,540

3,914

Itron, Inc. 2.5% 8/1/26

7,000

7,703

Merix Corp.:

4% 5/15/13 (f)

11,250

6,061

4% 5/15/13

7,600

4,095

Newport Corp. 2.5% 2/15/12 (f)

3,750

3,240

SYNNEX Corp. 4% 5/15/18 (f)

10,000

11,584

 

36,597

Internet Software & Services - 0.8%

GSI Commerce, Inc. 2.5% 6/1/27 (f)

10,000

8,463

VeriSign, Inc. 3.25% 8/15/37

10,000

8,191

 

16,654

IT Services - 1.7%

Alliance Data Systems Corp.:

1.75% 8/1/13

14,788

13,196

4.75% 5/15/14 (f)

1,300

1,728

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

8,000

2

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

6,000

6,195

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

16,100

17,509

 

38,630

Semiconductors & Semiconductor Equipment - 8.4%

Advanced Micro Devices, Inc.:

5.75% 8/15/12

40,000

32,150

6% 5/1/15

15,000

9,957

Amkor Technology, Inc. 6% 4/15/14 (f)

10,890

21,805

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

7,000

4,900

Intel Corp.:

2.95% 12/15/35

48,000

42,918

3.25% 8/1/39 (f)

7,000

7,455

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

10,333

1,391

Micron Technology, Inc.:

1.875% 6/1/14

10,000

7,731

4.25% 10/15/13

1,130

1,839

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

INFORMATION TECHNOLOGY - continued

Semiconductors & Semiconductor Equipment - continued

ON Semiconductor Corp.:

1.875% 12/15/25 (f)

$ 3,750

$ 4,809

2.625% 12/15/26

35,330

36,436

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

10,000

11,724

Spansion, Inc. 2.25% 6/15/16 (c)(f)

7,267

1,308

 

184,423

Software - 0.2%

Symantec Corp. 1% 6/15/13

5,000

5,055

TOTAL INFORMATION TECHNOLOGY

349,267

MATERIALS - 0.3%

Metals & Mining - 0.3%

ArcelorMittal SA 5% 5/15/14

2,170

3,018

Newmont Mining Corp. 3% 2/15/12

2,120

2,433

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

860

1,054

 

6,505

TELECOMMUNICATION SERVICES - 1.6%

Diversified Telecommunication Services - 0.8%

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

16,000

11,676

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

6,000

5,415

 

17,091

Wireless Telecommunication Services - 0.8%

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

26,000

18,915

TOTAL TELECOMMUNICATION SERVICES

36,006

TOTAL CONVERTIBLE BONDS

1,125,173

Nonconvertible Bonds - 1.6%

CONSUMER DISCRETIONARY - 0.3%

Auto Components - 0.3%

TRW Automotive, Inc.:

7% 3/15/14 (f)

1,300

1,131

7.25% 3/15/17 (f)

6,230

5,233

 

6,364

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Nonconvertible Bonds - continued

CONSUMER STAPLES - 0.1%

Personal Products - 0.1%

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

$ 3,745

$ 3,534

FINANCIALS - 0.3%

Consumer Finance - 0.3%

GMAC LLC:

7.5% 12/31/13 (f)

4,264

3,539

8% 12/31/18 (f)

3,812

2,783

 

6,322

INFORMATION TECHNOLOGY - 0.9%

Semiconductors & Semiconductor Equipment - 0.9%

Amkor Technology, Inc.:

7.75% 5/15/13

1,995

1,955

9.25% 6/1/16

5,935

5,950

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

20,988

11,619

 

19,524

TOTAL NONCONVERTIBLE BONDS

35,744

TOTAL CORPORATE BONDS

(Cost $1,263,942)

1,160,917

Common Stocks - 10.9%

Shares

 

CONSUMER DISCRETIONARY - 0.9%

Diversified Consumer Services - 0.4%

Service Corp. International

1,143,000

8,092

Hotels, Restaurants & Leisure - 0.5%

Domino's Pizza, Inc. (a)

170,400

1,379

Las Vegas Sands Corp. (a)(e)

628,200

8,958

 

10,337

TOTAL CONSUMER DISCRETIONARY

18,429

ENERGY - 0.2%

Oil, Gas & Consumable Fuels - 0.2%

McMoRan Exploration Co. (a)(e)

500,000

4,170

Common Stocks - continued

Shares

Value (000s)

FINANCIALS - 8.2%

Commercial Banks - 2.8%

Huntington Bancshares, Inc. (e)

5,820,500

$ 26,541

KeyCorp

5,414,100

36,058

 

62,599

Diversified Financial Services - 5.4%

Bank of America Corp.

6,722,385

118,242

Thrifts & Mortgage Finance - 0.0%

Washington Mutual, Inc.

2,959,042

547

TOTAL FINANCIALS

181,388

INFORMATION TECHNOLOGY - 1.4%

Communications Equipment - 0.4%

EMCORE Corp. (a)(e)

172,258

183

Finisar Corp. (a)

9,392,960

8,266

 

8,449

Electronic Equipment & Components - 0.0%

L-1 Identity Solutions, Inc. (a)

100,000

717

Semiconductors & Semiconductor Equipment - 1.0%

Amkor Technology, Inc. (a)

843,200

4,671

ON Semiconductor Corp. (a)

2,169,500

17,508

 

22,179

TOTAL INFORMATION TECHNOLOGY

31,345

UTILITIES - 0.2%

Independent Power Producers & Energy Traders - 0.2%

NRG Energy, Inc. (a)

167,000

4,484

TOTAL COMMON STOCKS

(Cost $209,620)

239,816

Convertible Preferred Stocks - 25.9%

 

 

 

 

CONSUMER DISCRETIONARY - 1.6%

Automobiles - 0.6%

Ford Motor Co. Capital Trust II 6.50%

450,000

13,100

Leisure Equipment & Products - 0.5%

Callaway Golf Co. 7.50% (a)(f)

100,000

11,850

Convertible Preferred Stocks - continued

Shares

Value (000s)

CONSUMER DISCRETIONARY - continued

Media - 0.5%

LodgeNet Entertainment Corp. 10.00% (a)(f)

4,997

$ 9,897

TOTAL CONSUMER DISCRETIONARY

34,847

CONSUMER STAPLES - 2.7%

Food Products - 2.7%

Archer Daniels Midland Co. 6.25%

600,000

23,028

Bunge Ltd.:

4.875%

237,000

21,280

5.125%

22,000

14,393

 

58,701

ENERGY - 4.8%

Oil, Gas & Consumable Fuels - 4.8%

El Paso Corp. 4.99% (f)

119,290

100,638

Goodrich Petroleum Corp. 5.375%

100,000

4,455

 

105,093

FINANCIALS - 6.9%

Commercial Banks - 4.7%

Huntington Bancshares, Inc. 8.50%

2,100

1,663

Wells Fargo & Co. 7.50%

120,550

102,769

 

104,432

Diversified Financial Services - 1.8%

Bank of America Corp. Series L, 7.25%

47,085

40,634

Insurance - 0.4%

Assured Guaranty Ltd. 8.50%

100,000

8,125

TOTAL FINANCIALS

153,191

MATERIALS - 9.9%

Chemicals - 4.1%

Celanese Corp. 4.25%

2,750,500

90,464

Convertible Preferred Stocks - continued

Shares

Value (000s)

MATERIALS - continued

Metals & Mining - 5.8%

Freeport-McMoRan Copper & Gold, Inc.:

5.50%

18,400

$ 24,987

6.75%

1,093,500

103,646

 

128,633

TOTAL MATERIALS

219,097

TOTAL CONVERTIBLE PREFERRED STOCKS

(Cost $628,443)

570,929

Floating Rate Loans - 0.7%

 

Principal Amount
(000s)

 

CONSUMER DISCRETIONARY - 0.1%

Media - 0.1%

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

$ 7,822

1,721

FINANCIALS - 0.3%

Diversified Financial Services - 0.3%

CCO Holdings, LLC Tranche 3LN, term loan 6.75% 9/6/14 (g)

9,000

7,560

MATERIALS - 0.3%

Chemicals - 0.3%

Georgia Gulf Corp. term loan 9.4114% 10/3/13 (g)

6,598

6,334

TOTAL FLOATING RATE LOANS

(Cost $18,104)

15,615

Money Market Funds - 10.2%

Shares

Value (000s)

Fidelity Cash Central Fund, 0.33% (h)

203,669,092

$ 203,669

Fidelity Securities Lending Cash Central Fund, 0.23% (b)(h)

20,830,800

20,831

TOTAL MONEY MARKET FUNDS

(Cost $224,500)

224,500

TOTAL INVESTMENT PORTFOLIO - 100.3%

(Cost $2,344,609)

2,211,777

NET OTHER ASSETS - (0.3)%

(6,248)

NET ASSETS - 100%

$ 2,205,529

Legend

(a) Non-income producing

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

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

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

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

(f) 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 $481,430,000 or 21.8% of net assets.

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

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

Affiliated Central Funds

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

Fund

Income earned
(Amounts in thousands)

Fidelity Cash Central Fund

$ 256

Fidelity Securities Lending Cash Central Fund

112

Total

$ 368

Other Information

The following is a summary of the inputs used, as of August 31, 2009, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs and their aggregation into the levels used in the tables below please refer to the Investment Valuation section at the end of this listing.

Valuation Inputs at Reporting Date:

Description
(Amounts in thousands)

Total

Level 1

Level 2

Level 3

Investments in Securities:

Equities:

Consumer Discretionary

$ 53,276

$ 18,429

$ 34,847

$ -

Consumer Staples

58,701

-

58,701

-

Energy

109,263

4,170

105,093

-

Financials

334,579

326,454

8,125

-

Information Technology

31,345

31,345

-

-

Materials

219,097

-

219,097

-

Utilities

4,484

4,484

-

-

Corporate Bonds

1,160,917

-

1,159,526

1,391

Floating Rate Loans

15,615

-

15,615

-

Money Market Funds

224,500

224,500

-

-

Total Investments in Securities:

$ 2,211,777

$ 609,382

$ 1,601,004

$ 1,391

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

Investments in Securities
(Amounts in thousands)

 

Beginning Balance

$ 11,213

Total Realized Gain (Loss)

(7,309)

Total Unrealized Gain (Loss)

1,637

Cost of Purchases

1,977

Proceeds of Sales

(1,178)

Amortization/Accretion

764

Transfer in/out of Level 3

(5,713)

Ending Balance

$ 1,391

The change in unrealized gain (loss) attributable to Level 3 securities at August 31, 2009

$ (666)

The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations.

Income Tax Information

At August 31, 2009, the aggregate cost of investment securities for income tax purposes was $2,335,059,000. Net unrealized depreciation aggregated $123,282,000, of which $181,149,000 related to appreciated investment securities and $304,431,000 related to depreciated investment securities.

Investment Valuation

Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Security transactions are accounted for as of trade date. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. Generally Accepted Accounting Principles (GAAP) establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are classified into three levels. Level 1 includes readily available unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes observable inputs other than quoted prices included in Level 1 that are observable either directly or indirectly. Level 3 includes unobservable inputs when market prices are not readily available or reliable. Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy. Valuation techniques of the Fund's major categories of assets and liabilities are as follows.

Debt securities, including restricted securities, are valued based on quotations received from dealers who make markets in such securities or by independent pricing services. For corporate bonds and floating rate loans pricing services generally utilize matrix pricing which considers 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, including securities backed by subprime mortgage loans, 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.

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

August 31, 2009 

1.805774.105

EII-QTLY-1009

Investments August 31, 2009 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 97.7%

Shares

Value (000s)

CONSUMER DISCRETIONARY - 14.8%

Auto Components - 1.5%

Gentex Corp.

230,000

$ 3,356

Johnson Controls, Inc.

1,407,100

34,854

Magna International, Inc. Class A (sub. vtg.)

122,400

5,546

The Goodyear Tire & Rubber Co. (a)

2,117,900

34,924

 

78,680

Automobiles - 0.7%

Fiat SpA (a)

943,300

11,171

Harley-Davidson, Inc. (c)

1,057,258

25,353

 

36,524

Diversified Consumer Services - 0.6%

H&R Block, Inc.

1,835,500

31,717

Hotels, Restaurants & Leisure - 0.5%

Starbucks Corp. (a)

1,379,200

26,191

Household Durables - 3.6%

Black & Decker Corp.

314,029

13,855

Lennar Corp. Class A

409,800

6,208

Newell Rubbermaid, Inc.

1,684,800

23,452

The Stanley Works

279,800

11,452

Toll Brothers, Inc. (a)

4,600,050

104,605

Whirlpool Corp.

546,900

35,116

 

194,688

Internet & Catalog Retail - 0.2%

Liberty Media Corp. Interactive Series A (a)

966,236

9,257

Media - 2.8%

Belo Corp. Series A

912,073

3,046

Comcast Corp. Class A

2,281,000

34,945

Informa PLC

1,805,725

8,361

Interpublic Group of Companies, Inc. (a)

1,069,100

6,725

The Walt Disney Co.

1,329,525

34,621

Time Warner, Inc.

1,549,417

43,244

Viacom, Inc. Class B (non-vtg.) (a)

441,100

11,045

Virgin Media, Inc.

912,900

10,434

 

152,421

Multiline Retail - 1.9%

Kohl's Corp. (a)

911,971

47,049

Macy's, Inc.

837,319

12,995

Target Corp.

945,500

44,439

 

104,483

Common Stocks - continued

Shares

Value (000s)

CONSUMER DISCRETIONARY - continued

Specialty Retail - 3.0%

Home Depot, Inc.

2,657,300

$ 72,518

Lowe's Companies, Inc.

1,031,800

22,184

OfficeMax, Inc.

237,000

2,680

RadioShack Corp.

355,800

5,383

Staples, Inc.

1,710,500

36,964

Tiffany & Co., Inc.

517,000

18,808

 

158,537

Textiles, Apparel & Luxury Goods - 0.0%

Liz Claiborne, Inc.

523,482

2,225

TOTAL CONSUMER DISCRETIONARY

794,723

CONSUMER STAPLES - 5.2%

Beverages - 1.1%

Carlsberg AS Series B

344,488

24,749

The Coca-Cola Co.

703,900

34,329

 

59,078

Food & Staples Retailing - 1.0%

CVS Caremark Corp.

474,800

17,814

Wal-Mart Stores, Inc.

335,600

17,072

Walgreen Co.

350,300

11,868

Winn-Dixie Stores, Inc. (a)

433,600

5,971

 

52,725

Food Products - 0.8%

Nestle SA (Reg.)

657,942

27,325

Tyson Foods, Inc. Class A

1,164,869

13,967

 

41,292

Household Products - 1.1%

Kimberly-Clark Corp.

445,200

26,917

Procter & Gamble Co.

606,000

32,791

 

59,708

Personal Products - 0.4%

Avon Products, Inc.

634,204

20,212

Tobacco - 0.8%

Philip Morris International, Inc.

1,004,959

45,937

TOTAL CONSUMER STAPLES

278,952

Common Stocks - continued

Shares

Value (000s)

ENERGY - 14.8%

Energy Equipment & Services - 2.6%

BJ Services Co.

633,104

$ 10,168

Halliburton Co.

804,100

19,065

Nabors Industries Ltd. (a)

921,600

16,294

Noble Corp.

1,220,700

42,761

Pride International, Inc. (a)

401,529

10,351

Schlumberger Ltd.

718,776

40,395

Seahawk Drilling, Inc. (a)

26,768

597

 

139,631

Oil, Gas & Consumable Fuels - 12.2%

Anadarko Petroleum Corp.

237,798

12,572

Apache Corp.

384,400

32,655

Chevron Corp.

2,322,800

162,457

ConocoPhillips

2,087,900

94,018

CONSOL Energy, Inc.

222,500

8,324

Devon Energy Corp.

204,786

12,570

EOG Resources, Inc.

468,286

33,717

Exxon Mobil Corp.

2,157,500

149,191

Marathon Oil Corp.

715,045

22,073

Occidental Petroleum Corp.

646,595

47,266

Peabody Energy Corp.

213,300

6,971

Reliance Industries Ltd. (a)

107,823

4,440

Royal Dutch Shell PLC:

Class A sponsored ADR

1,009,000

55,969

Class B ADR

235,100

12,728

 

654,951

TOTAL ENERGY

794,582

FINANCIALS - 25.5%

Capital Markets - 5.7%

Bank of New York Mellon Corp.

2,037,824

60,340

Credit Suisse Group sponsored ADR

604,700

30,773

Goldman Sachs Group, Inc.

557,200

92,194

Morgan Stanley

2,534,499

73,399

State Street Corp.

357,900

18,783

UBS AG:

(For. Reg.) (a)

621,000

11,432

(NY Shares) (a)

1,091,300

19,993

 

306,914

Common Stocks - continued

Shares

Value (000s)

FINANCIALS - continued

Commercial Banks - 6.8%

Associated Banc-Corp.

880,042

$ 9,126

Comerica, Inc.

555,200

14,807

Huntington Bancshares, Inc.

738,300

3,367

KeyCorp

3,049,074

20,307

Mitsubishi UFJ Financial Group, Inc. sponsored ADR

3,528,300

22,369

PNC Financial Services Group, Inc.

1,460,600

62,207

Standard Chartered PLC (United Kingdom)

342,100

7,775

SunTrust Banks, Inc.

399,500

9,336

U.S. Bancorp, Delaware

1,542,000

34,880

Wells Fargo & Co.

6,548,900

180,226

 

364,400

Consumer Finance - 1.0%

Capital One Financial Corp.

830,600

30,973

Discover Financial Services

1,226,400

16,863

SLM Corp. (a)

867,281

7,719

 

55,555

Diversified Financial Services - 8.8%

Bank of America Corp.

11,103,473

195,310

Citigroup, Inc.

6,570,083

32,850

CME Group, Inc.

15,088

4,391

JPMorgan Chase & Co.

5,504,200

239,215

 

471,766

Insurance - 2.5%

ACE Ltd.

659,900

34,434

Hartford Financial Services Group, Inc.

600,700

14,249

Lincoln National Corp.

317,100

8,004

MBIA, Inc. (a)

300,630

2,020

MetLife, Inc.

326,200

12,317

Montpelier Re Holdings Ltd.

1,094,500

17,611

The Travelers Companies, Inc.

730,933

36,854

XL Capital Ltd. Class A

553,600

9,605

 

135,094

Real Estate Investment Trusts - 0.5%

HCP, Inc.

572,600

16,308

Segro PLC

253,112

1,482

Senior Housing Properties Trust (SBI)

472,882

9,486

 

27,276

Real Estate Management & Development - 0.0%

Indiabulls Real Estate Ltd.

310,276

1,752

Common Stocks - continued

Shares

Value (000s)

FINANCIALS - continued

Thrifts & Mortgage Finance - 0.2%

New York Community Bancorp, Inc. (c)

868,560

$ 9,241

TOTAL FINANCIALS

1,371,998

HEALTH CARE - 8.5%

Biotechnology - 0.7%

Amgen, Inc. (a)

582,100

34,775

Biogen Idec, Inc. (a)

95,170

4,778

 

39,553

Health Care Equipment & Supplies - 0.9%

Baxter International, Inc.

189,700

10,798

Boston Scientific Corp. (a)

1,329,105

15,617

Covidien PLC

544,000

21,526

 

47,941

Health Care Providers & Services - 0.3%

CIGNA Corp.

206,400

6,074

Fresenius Medical Care AG & Co. KGaA

159,300

7,158

UnitedHealth Group, Inc.

47,400

1,327

 

14,559

Pharmaceuticals - 6.6%

Abbott Laboratories

318,600

14,410

Bristol-Myers Squibb Co.

696,346

15,410

Johnson & Johnson

922,200

55,738

Merck & Co., Inc.

1,470,000

47,672

Pfizer, Inc.

5,649,600

94,348

Schering-Plough Corp.

1,346,900

37,956

Wyeth

1,823,700

87,264

 

352,798

TOTAL HEALTH CARE

454,851

INDUSTRIALS - 9.5%

Aerospace & Defense - 2.8%

General Dynamics Corp.

167,083

9,890

Honeywell International, Inc.

1,578,200

58,015

Spirit AeroSystems Holdings, Inc. Class A (a)

756,800

11,746

The Boeing Co.

505,617

25,114

United Technologies Corp.

797,728

47,353

 

152,118

Common Stocks - continued

Shares

Value (000s)

INDUSTRIALS - continued

Building Products - 0.3%

Masco Corp.

1,254,600

$ 18,167

Commercial Services & Supplies - 0.1%

Republic Services, Inc.

191,583

4,906

Electrical Equipment - 0.4%

Cooper Industries Ltd. Class A

397,300

12,813

Rockwell Automation, Inc.

63,200

2,645

Schneider Electric SA

79,061

7,288

 

22,746

Industrial Conglomerates - 3.1%

General Electric Co.

4,471,800

62,158

Koninklijke Philips Electronics NV (NY Shares)

174,552

3,936

Rheinmetall AG

344,942

16,834

Siemens AG sponsored ADR

493,200

42,829

Textron, Inc.

1,326,600

20,377

Tyco International Ltd.

621,400

19,692

 

165,826

Machinery - 2.2%

Briggs & Stratton Corp.

748,526

13,204

Caterpillar, Inc.

95,700

4,336

Cummins, Inc.

412,900

18,713

Danaher Corp.

190,300

11,553

Eaton Corp.

382,200

20,620

Illinois Tool Works, Inc.

237,872

9,948

Ingersoll-Rand Co. Ltd.

585,553

18,088

Kennametal, Inc.

532,200

11,735

Vallourec SA

55,600

8,446

 

116,643

Road & Rail - 0.6%

Burlington Northern Santa Fe Corp.

88,500

7,347

CSX Corp.

174,900

7,433

Union Pacific Corp.

265,200

15,862

 

30,642

TOTAL INDUSTRIALS

511,048

Common Stocks - continued

Shares

Value (000s)

INFORMATION TECHNOLOGY - 8.1%

Communications Equipment - 1.1%

Cisco Systems, Inc. (a)

2,138,900

$ 46,200

Motorola, Inc.

2,080,892

14,941

 

61,141

Computers & Peripherals - 1.4%

Dell, Inc. (a)

479,800

7,595

Hewlett-Packard Co.

1,084,255

48,672

International Business Machines Corp.

174,800

20,635

 

76,902

Electronic Equipment & Components - 0.9%

Arrow Electronics, Inc. (a)

237,538

6,566

Avnet, Inc. (a)

475,100

12,661

Tyco Electronics Ltd.

1,152,971

26,311

 

45,538

IT Services - 0.0%

MoneyGram International, Inc. (a)

340,342

905

Office Electronics - 0.2%

Xerox Corp.

1,089,380

9,423

Semiconductors & Semiconductor Equipment - 3.2%

Analog Devices, Inc.

786,893

22,230

Applied Materials, Inc.

3,062,600

40,365

Intel Corp.

3,347,600

68,023

Micron Technology, Inc. (a)

1,472,300

10,851

National Semiconductor Corp.

1,678,202

25,458

Varian Semiconductor Equipment Associates, Inc. (a)

119,900

3,665

 

170,592

Software - 1.3%

Microsoft Corp.

1,433,054

35,325

Oracle Corp.

1,534,300

33,555

 

68,880

TOTAL INFORMATION TECHNOLOGY

433,381

MATERIALS - 1.3%

Chemicals - 0.7%

Dow Chemical Co.

414,932

8,834

E.I. du Pont de Nemours & Co.

768,209

24,529

H.B. Fuller Co.

351,492

6,938

 

40,301

Common Stocks - continued

Shares

Value (000s)

MATERIALS - continued

Metals & Mining - 0.6%

Alcoa, Inc.

1,207,232

$ 14,547

Freeport-McMoRan Copper & Gold, Inc.

79,300

4,994

Nucor Corp.

249,600

11,117

 

30,658

TOTAL MATERIALS

70,959

TELECOMMUNICATION SERVICES - 6.4%

Diversified Telecommunication Services - 5.8%

AT&T, Inc.

7,279,300

189,626

Qwest Communications International, Inc. (c)

8,103,600

29,092

Verizon Communications, Inc.

3,035,800

94,231

 

312,949

Wireless Telecommunication Services - 0.6%

Sprint Nextel Corp. (a)

3,645,347

13,342

Vodafone Group PLC sponsored ADR

814,900

17,700

 

31,042

TOTAL TELECOMMUNICATION SERVICES

343,991

UTILITIES - 3.6%

Electric Utilities - 2.1%

Allegheny Energy, Inc.

1,123,897

29,682

American Electric Power Co., Inc.

379,609

11,931

Entergy Corp.

388,700

30,707

Exelon Corp.

557,401

27,881

FirstEnergy Corp.

238,000

10,741

Southern Co.

95,700

2,986

 

113,928

Independent Power Producers & Energy Traders - 0.8%

AES Corp.

2,279,900

31,166

Constellation Energy Group, Inc.

365,400

11,565

 

42,731

Common Stocks - continued

Shares

Value (000s)

UTILITIES - continued

Multi-Utilities - 0.7%

Public Service Enterprise Group, Inc.

263,300

$ 8,339

Wisconsin Energy Corp.

658,500

29,942

 

38,281

TOTAL UTILITIES

194,940

TOTAL COMMON STOCKS

(Cost $4,679,814)

5,249,425

Convertible Preferred Stocks - 0.9%

 

 

 

 

FINANCIALS - 0.2%

Commercial Banks - 0.1%

Huntington Bancshares, Inc. 8.50%

7,600

6,018

Insurance - 0.1%

Assured Guaranty Ltd. 8.50%

47,400

3,851

TOTAL FINANCIALS

9,869

HEALTH CARE - 0.4%

Pharmaceuticals - 0.4%

Schering-Plough Corp. 6.00%

76,000

18,400

MATERIALS - 0.3%

Metals & Mining - 0.3%

Freeport-McMoRan Copper & Gold, Inc. 6.75%

190,100

18,018

TOTAL CONVERTIBLE PREFERRED STOCKS

(Cost $28,021)

46,287

Convertible Bonds - 0.8%

 

Principal Amount (000s)

 

CONSUMER DISCRETIONARY - 0.2%

Auto Components - 0.1%

Johnson Controls, Inc. 6.5% 9/30/12

$ 3,430

7,951

Diversified Consumer Services - 0.0%

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

1,260

2,310

Convertible Bonds - continued

 

Principal Amount (000s)

Value (000s)

CONSUMER DISCRETIONARY - continued

Household Durables - 0.1%

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

$ 1,450

$ 2,589

TOTAL CONSUMER DISCRETIONARY

12,850

INDUSTRIALS - 0.1%

Industrial Conglomerates - 0.1%

Textron, Inc. 4.5% 5/1/13

1,840

2,524

INFORMATION TECHNOLOGY - 0.2%

Semiconductors & Semiconductor Equipment - 0.2%

Intel Corp. 3.25% 8/1/39 (d)

7,930

8,446

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

1,820

2,962

 

11,408

MATERIALS - 0.3%

Metals & Mining - 0.3%

Alcoa, Inc. 5.25% 3/15/14

3,210

6,556

ArcelorMittal SA 5% 5/15/14

2,570

3,575

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

4,290

6,714

 

16,845

TOTAL CONVERTIBLE BONDS

(Cost $27,800)

43,627

Money Market Funds - 1.5%

Shares

 

Fidelity Cash Central Fund, 0.33% (e)

14,229,495

14,229

Fidelity Securities Lending Cash Central Fund, 0.23% (b)(e)

64,619,000

64,619

TOTAL MONEY MARKET FUNDS

(Cost $78,848)

78,848

TOTAL INVESTMENT PORTFOLIO - 100.9%

(Cost $4,814,483)

5,418,187

NET OTHER ASSETS - (0.9)%

(47,317)

NET ASSETS - 100%

$ 5,370,870

Legend

(a) Non-income producing

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

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

(d) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $8,446,000 or 0.2% of net assets.

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

Affiliated Central Funds

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

Fund

Income earned
(Amounts in thousands)

Fidelity Cash Central Fund

$ 141

Fidelity Securities Lending Cash Central Fund

1,798

Total

$ 1,939

Other Information

The following is a summary of the inputs used, as of August 31, 2009, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section at the end of this listing.

Valuation Inputs at Reporting Date:

Description
(Amounts in thousands)

Total

Level 1

Level 2

Level 3

Investments in Securities:

Equities:

Consumer Discretionary

$ 794,723

$ 794,723

$ -

$ -

Consumer Staples

278,952

278,952

-

-

Energy

794,582

794,582

-

-

Financials

1,381,867

1,366,584

15,283

-

Health Care

473,251

454,851

18,400

-

Industrials

511,048

511,048

-

-

Information Technology

433,381

433,381

-

-

Materials

88,977

70,959

18,018

-

Telecommunication Services

343,991

343,991

-

-

Utilities

194,940

194,940

-

-

Corporate Bonds

43,627

-

43,627

-

Money Market Funds

78,848

78,848

-

-

Total Investments in Securities:

$ 5,418,187

$ 5,322,859

$ 95,328

$ -

Income Tax Information

At August 31, 2009, the aggregate cost of investment securities for income tax purposes was $4,958,143,000. Net unrealized appreciation aggregated $460,044,000, of which $926,945,000 related to appreciated investment securities and $466,901,000 related to depreciated investment securities.

Investment Valuation

Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Security transactions are accounted for as of trade date. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. Generally Accepted Accounting Principles (GAAP) establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are classified into three levels. Level 1 includes readily available unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes observable inputs other than quoted prices included in Level 1 that are observable either directly or indirectly. Level 3 includes unobservable inputs when market prices are not readily available or reliable. Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy. Valuation techniques of the Fund's major categories of assets and liabilities are as follows.

Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. 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, are valued based on quotations received from dealers who make markets in such securities or by independent pricing services. For corporate bonds pricing services generally utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as available dealer supplied prices. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.

When current market prices or quotations are not readily available or 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.

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

August 31, 2009 

1.805765.105

FRE-QTLY-1009

Investments August 31, 2009 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 99.8%

Shares

Value (000s)

CONSUMER DISCRETIONARY - 10.9%

Auto Components - 2.6%

Autoliv, Inc.

1,000,000

$ 32,070

BorgWarner, Inc.

500,000

14,835

Magna International, Inc. Class A (sub. vtg.)

500,000

22,657

The Goodyear Tire & Rubber Co. (a)

1,500,000

24,735

TRW Automotive Holdings Corp. (a)

450,000

7,943

 

102,240

Automobiles - 0.3%

Ford Motor Co. (a)

1,500,000

11,400

Hotels, Restaurants & Leisure - 1.0%

Ctrip.com International Ltd. sponsored ADR (a)

800,000

39,152

Household Durables - 1.1%

Gafisa SA sponsored ADR (a)(c)

1,439,900

42,203

Internet & Catalog Retail - 2.5%

Amazon.com, Inc. (a)

600,000

48,714

B2W Companhia Global Do Varejo

300,000

7,759

Priceline.com, Inc. (a)(c)

250,000

38,495

 

94,968

Multiline Retail - 1.7%

Target Corp.

1,400,000

65,800

Specialty Retail - 1.6%

Lowe's Companies, Inc.

2,200,000

47,300

TJX Companies, Inc.

450,000

16,178

 

63,478

Textiles, Apparel & Luxury Goods - 0.1%

Fuqi International, Inc. (a)(c)

132,200

3,428

TOTAL CONSUMER DISCRETIONARY

422,669

CONSUMER STAPLES - 2.3%

Food & Staples Retailing - 1.1%

Costco Wholesale Corp.

800,000

40,784

Food Products - 1.0%

Bunge Ltd.

400,000

26,804

Corn Products International, Inc.

400,000

11,864

 

38,668

Personal Products - 0.2%

Hengan International Group Co. Ltd.

1,500,000

8,303

TOTAL CONSUMER STAPLES

87,755

Common Stocks - continued

Shares

Value (000s)

ENERGY - 12.7%

Energy Equipment & Services - 5.5%

Halliburton Co.

400,000

$ 9,484

Noble Corp.

1,000,000

35,030

Pride International, Inc. (a)

300,000

7,734

Schlumberger Ltd.

600,000

33,720

Seahawk Drilling, Inc. (a)

20,000

446

Transocean Ltd. (a)

1,000,000

75,840

Weatherford International Ltd. (a)

2,500,000

49,875

 

212,129

Oil, Gas & Consumable Fuels - 7.2%

Chesapeake Energy Corp.

2,810,400

64,190

Concho Resources, Inc. (a)

800,000

26,072

EOG Resources, Inc.

200,000

14,400

EXCO Resources, Inc. (a)

700,000

10,262

Hess Corp.

75,000

3,794

Occidental Petroleum Corp.

500,000

36,550

PT Bumi Resources Tbk

15,000,000

4,315

Quicksilver Resources, Inc. (a)(c)

1,000,000

10,820

Range Resources Corp.

300,000

14,511

SandRidge Energy, Inc. (a)

1,200,000

14,640

Southwestern Energy Co. (a)

1,100,000

40,546

Suncor Energy, Inc.

1,004,000

30,718

Ultra Petroleum Corp. (a)

133,079

6,179

 

276,997

TOTAL ENERGY

489,126

FINANCIALS - 28.2%

Capital Markets - 5.6%

Deutsche Bank AG (NY Shares)

1,000,000

67,580

Goldman Sachs Group, Inc.

58,300

9,646

Morgan Stanley

2,465,300

71,395

State Street Corp.

850,000

44,608

The Blackstone Group LP

1,700,000

21,913

 

215,142

Commercial Banks - 6.8%

China Construction Bank Corp. (H Shares)

15,279,000

11,533

Industrial & Commercial Bank of China Ltd.

14,700,000

10,033

PNC Financial Services Group, Inc.

1,650,000

70,274

Wells Fargo & Co.

6,250,000

172,000

 

263,840

Common Stocks - continued

Shares

Value (000s)

FINANCIALS - continued

Diversified Financial Services - 10.6%

Apollo Global Management LLC (a)(d)

1,703,400

$ 5,962

Bank of America Corp.

9,839,081

173,067

BM&F BOVESPA SA

500,000

3,087

CME Group, Inc.

100,000

29,104

Hong Kong Exchange & Clearing Ltd.

1,000,000

17,418

IntercontinentalExchange, Inc. (a)

350,000

32,830

JPMorgan Chase & Co.

3,300,000

143,418

Singapore Exchange Ltd.

500,000

2,901

 

407,787

Insurance - 5.0%

Assurant, Inc.

200,000

5,990

Assured Guaranty Ltd.

492,800

9,807

Hartford Financial Services Group, Inc.

2,700,000

64,044

Lincoln National Corp.

1,318,500

33,279

MBIA, Inc. (a)(c)

1,000,000

6,720

Principal Financial Group, Inc.

400,000

11,360

Prudential Financial, Inc.

300,000

15,174

XL Capital Ltd. Class A

2,800,000

48,580

 

194,954

Real Estate Investment Trusts - 0.2%

Host Hotels & Resorts, Inc.

500,000

4,985

Segro PLC

338,600

1,982

 

6,967

TOTAL FINANCIALS

1,088,690

HEALTH CARE - 10.5%

Biotechnology - 3.9%

Dendreon Corp. (a)

400,000

9,348

Gilead Sciences, Inc. (a)

1,000,000

45,060

Myriad Genetics, Inc. (a)

800,000

24,456

United Therapeutics Corp. (a)

400,000

36,604

Vertex Pharmaceuticals, Inc. (a)

900,000

33,669

 

149,137

Health Care Equipment & Supplies - 0.4%

Covidien PLC

350,000

13,850

Health Care Providers & Services - 4.6%

Express Scripts, Inc. (a)

1,600,000

115,552

Common Stocks - continued

Shares

Value (000s)

HEALTH CARE - continued

Health Care Providers & Services - continued

Humana, Inc. (a)

800,000

$ 28,560

Medco Health Solutions, Inc. (a)

600,000

33,132

 

177,244

Health Care Technology - 0.6%

Cerner Corp. (a)(c)

400,000

24,684

Life Sciences Tools & Services - 1.0%

Illumina, Inc. (a)

400,000

14,108

Life Technologies Corp. (a)

600,000

26,718

 

40,826

TOTAL HEALTH CARE

405,741

INDUSTRIALS - 8.3%

Aerospace & Defense - 0.2%

AeroVironment, Inc. (a)(c)

250,000

7,033

Airlines - 3.7%

AMR Corp. (a)

2,500,000

13,650

Continental Airlines, Inc. Class B (a)

2,200,000

29,194

Delta Air Lines, Inc. (a)

12,796,875

92,393

Southwest Airlines Co.

1,000,000

8,180

 

143,417

Electrical Equipment - 0.6%

First Solar, Inc. (a)(c)

185,000

22,492

Industrial Conglomerates - 0.4%

Textron, Inc.

1,158,300

17,791

Road & Rail - 3.4%

CSX Corp.

1,400,000

59,500

Union Pacific Corp.

1,200,000

71,772

 

131,272

TOTAL INDUSTRIALS

322,005

INFORMATION TECHNOLOGY - 15.4%

Communications Equipment - 2.6%

Cisco Systems, Inc. (a)

718,800

15,526

Juniper Networks, Inc. (a)

1,100,000

25,377

QUALCOMM, Inc.

700,000

32,494

Common Stocks - continued

Shares

Value (000s)

INFORMATION TECHNOLOGY - continued

Communications Equipment - continued

Research In Motion Ltd. (a)

100,000

$ 7,306

Riverbed Technology, Inc. (a)

1,000,000

19,280

 

99,983

Computers & Peripherals - 2.9%

Apple, Inc. (a)

664,200

111,725

HTC Corp.

12,500

126

 

111,851

Electronic Equipment & Components - 0.0%

Agilent Technologies, Inc.

32,522

835

Internet Software & Services - 6.6%

Baidu.com, Inc. sponsored ADR (a)

150,000

49,509

eBay, Inc. (a)

2,000,000

44,280

Equinix, Inc. (a)(c)

100,000

8,426

Google, Inc. Class A (a)

175,000

80,792

NetEase.com, Inc. sponsored ADR (a)(c)

700,000

29,393

Tencent Holdings Ltd.

2,750,000

40,911

 

253,311

IT Services - 0.7%

Visa, Inc. Class A

400,000

28,440

Semiconductors & Semiconductor Equipment - 0.2%

NVIDIA Corp. (a)

500,000

7,260

Software - 2.4%

Citrix Systems, Inc. (a)

800,000

28,544

Microsoft Corp.

1,800,000

44,370

Rovi Corp. (a)

600,000

18,264

 

91,178

TOTAL INFORMATION TECHNOLOGY

592,858

MATERIALS - 10.3%

Chemicals - 7.0%

Ashland, Inc.

800,000

29,344

Dow Chemical Co.

4,100,000

87,289

E.I. du Pont de Nemours & Co.

600,000

19,158

Potash Corp. of Saskatchewan, Inc.

73,900

6,561

Rockwood Holdings, Inc. (a)

900,000

18,333

Terra Industries, Inc.

1,700,000

52,887

Common Stocks - continued

Shares

Value (000s)

MATERIALS - continued

Chemicals - continued

The Mosaic Co.

847,700

$ 41,088

Westlake Chemical Corp. (c)

600,000

14,424

 

269,084

Construction Materials - 0.4%

Vulcan Materials Co. (c)

300,000

15,012

Containers & Packaging - 0.7%

Owens-Illinois, Inc. (a)

800,000

27,152

Metals & Mining - 2.2%

Agnico-Eagle Mines Ltd. (Canada)

426,400

24,460

Alcoa, Inc.

2,637,500

31,782

Freeport-McMoRan Copper & Gold, Inc.

450,000

28,341

 

84,583

TOTAL MATERIALS

395,831

TELECOMMUNICATION SERVICES - 1.2%

Wireless Telecommunication Services - 1.2%

Sprint Nextel Corp. (a)

7,500,000

27,450

Vivo Participacoes SA sponsored ADR

900,000

20,484

 

47,934

TOTAL COMMON STOCKS

(Cost $3,136,381)

3,852,609

Money Market Funds - 3.9%

 

 

 

 

Fidelity Cash Central Fund, 0.33% (e)

4,614,552

4,615

Fidelity Securities Lending Cash Central Fund, 0.23% (b)(e)

147,581,557

147,582

TOTAL MONEY MARKET FUNDS

(Cost $152,197)

152,197

TOTAL INVESTMENT PORTFOLIO - 103.7%

(Cost $3,288,578)

4,004,806

NET OTHER ASSETS - (3.7)%

(142,401)

NET ASSETS - 100%

$ 3,862,405

Legend

(a) Non-income producing

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

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

(d) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $5,962,000 or 0.2% of net assets.

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

Affiliated Central Funds

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

Fund

Income earned
(Amounts in thousands)

Fidelity Cash Central Fund

$ 93

Fidelity Securities Lending Cash Central Fund

1,561

Total

$ 1,654

Other Information

All investments are categorized as Level 1 under the Fair Value Hierarchy. 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 please refer to the Investment Valuation section at the end of this listing.

Income Tax Information

At August 31, 2009, the aggregate cost of investment securities for income tax purposes was $3,361,905,000. Net unrealized appreciation aggregated $642,901,000, of which $804,240,000 related to appreciated investment securities and $161,339,000 related to depreciated investment securities.

Investment Valuation

Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Security transactions are accounted for as of trade date. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. Generally Accepted Accounting Principles (GAAP) establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are classified into three levels. Level 1 includes readily available unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes observable inputs other than quoted prices included in Level 1 that are observable either directly or indirectly. Level 3 includes unobservable inputs when market prices are not readily available or reliable. Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy. Valuation techniques of the Fund's major categories of assets and liabilities are as follows.

Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. 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.

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:

October 30, 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:

October 30, 2009

By:

/s/Christine Reynolds

 

Christine Reynolds

 

Chief Financial Officer

 

 

Date:

October 30, 2009