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, 2010

Item 1. Schedule of Investments

Quarterly Holdings Report

for

Fidelity ® Convertible Securities Fund

August 31, 2010 

1.805819.106

CVS-QTLY-1010

Investments August 31, 2010 (Unaudited)

Showing Percentage of Net Assets

Corporate Bonds - 63.4%

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - 62.9%

CONSUMER DISCRETIONARY - 6.1%

Auto Components - 0.1%

BorgWarner, Inc. 3.5% 4/15/12

$ 910

$ 1,307

Automobiles - 2.6%

Ford Motor Co. 4.25% 11/15/16

40,000

55,536

Diversified Consumer Services - 0.7%

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

490

920

Regis Corp. 5% 7/15/14

4,230

5,372

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

11,000

9,522

 

15,814

Hotels, Restaurants & Leisure - 0.2%

MGM Mirage, Inc. 4.25% 4/15/15 (g)

6,300

5,162

Household Durables - 0.1%

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

590

1,118

Media - 1.6%

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

14,000

14,315

Virgin Media, Inc. 6.5% 11/15/16

8,000

10,969

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

10,000

9,719

 

35,003

Specialty Retail - 0.8%

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

3,000

2,929

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

10,000

8,038

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

1,180

1,177

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

4,533

4,527

 

16,671

TOTAL CONSUMER DISCRETIONARY

130,611

CONSUMER STAPLES - 3.7%

Beverages - 0.7%

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

14,000

15,305

Food & Staples Retailing - 1.2%

Nash-Finch Co. 1.6314% 3/15/35 (e)

24,480

11,705

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

14,000

13,125

 

24,830

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

CONSUMER STAPLES - continued

Food Products - 1.8%

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

$ 22,250

$ 22,751

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

13,000

15,519

 

38,270

TOTAL CONSUMER STAPLES

78,405

ENERGY - 15.1%

Energy Equipment & Services - 2.7%

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

10,000

11,819

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

10,000

6,538

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

30,000

20,727

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

5,000

4,209

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

4,500

6,277

SESI LLC 1.5% 12/15/26 (e)(g)

7,000

6,677

 

56,247

Oil, Gas & Consumable Fuels - 12.4%

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

35,000

37,303

Chesapeake Energy Corp. 2.5% 5/15/37

70,250

57,998

Goodrich Petroleum Corp. 3.25% 12/1/26

6,000

5,790

International Coal Group, Inc. 4% 4/1/17

2,160

2,264

Massey Energy Co. 3.25% 8/1/15

5,000

4,314

Peabody Energy Corp. 4.75% 12/15/66

102,250

105,318

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

20,000

23,250

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

14,500

15,270

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

17,810

13,375

 

264,882

TOTAL ENERGY

321,129

FINANCIALS - 1.4%

Diversified Financial Services - 1.4%

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

30,000

29,441

HEALTH CARE - 5.6%

Health Care Equipment & Supplies - 3.1%

Alere, Inc. 3% 5/15/16

10,000

8,900

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

8,500

8,575

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

HEALTH CARE - continued

Health Care Equipment & Supplies - continued

Inverness Medical Innovations, Inc. 3% 5/15/16 (g)

$ 21,000

$ 18,690

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

15,000

14,151

Medtronic, Inc. 1.625% 4/15/13

10,000

10,010

SonoSite, Inc. 3.75% 7/15/14

7,000

7,326

 

67,652

Health Care Providers & Services - 0.3%

Omnicare, Inc. 3.25% 12/15/35

7,000

5,828

Life Sciences Tools & Services - 0.2%

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

4,000

3,768

Pharmaceuticals - 2.0%

Biovail Corp. 5.375% 8/1/14

10,000

16,333

Nektar Therapeutics 3.25% 9/28/12

9,000

8,674

Valeant Pharmaceuticals International 4% 11/15/13

10,000

18,250

 

43,257

TOTAL HEALTH CARE

120,505

INDUSTRIALS - 11.5%

Aerospace & Defense - 1.0%

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

14,000

13,860

GenCorp, Inc. 4.0625% 12/31/39 (g)

7,830

6,665

 

20,525

Airlines - 3.9%

AMR Corp. 6.25% 10/15/14

17,990

16,941

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

9,280

12,308

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

11,200

24,120

UAL Corp.:

4.5% 6/30/21 (g)

10,500

10,486

4.5% 6/30/21

5,000

4,994

6% 10/15/29

3,600

9,224

US Airways Group, Inc. 7% 9/30/20 (g)

4,810

4,810

 

82,883

Commercial Services & Supplies - 1.3%

Metalico, Inc. 7% 4/30/28

32,500

27,658

Construction & Engineering - 0.4%

MasTec, Inc. 4.25% 12/15/14 (g)

8,000

7,680

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

INDUSTRIALS - continued

Electrical Equipment - 0.6%

General Cable Corp. 4.5% 11/15/29 (e)

$ 14,800

$ 12,648

Industrial Conglomerates - 0.1%

Textron, Inc. 4.5% 5/1/13

1,440

2,139

Machinery - 1.6%

Greenbrier Companies, Inc.:

2.375% 5/15/26 (g)

5,500

4,565

2.375% 5/15/26

8,000

6,640

Terex Corp. 4% 6/1/15

8,090

10,727

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

15,000

12,394

 

34,326

Marine - 1.0%

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

34,000

21,080

Road & Rail - 1.6%

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

28,000

35,168

Trading Companies & Distributors - 0.0%

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

960

1,183

TOTAL INDUSTRIALS

245,290

INFORMATION TECHNOLOGY - 15.1%

Communications Equipment - 1.8%

CommScope, Inc. 3.25% 7/1/15

10,000

10,026

Finisar Corp. 5% 10/15/29 (g)

2,500

3,569

JDS Uniphase Corp. 1% 5/15/26 (g)

14,000

12,880

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

3,000

3,011

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

10,000

8,806

 

38,292

Computers & Peripherals - 1.7%

EMC Corp. 1.75% 12/1/13 (g)

17,000

21,686

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

5,000

3,713

SanDisk Corp. 1% 5/15/13

13,000

11,960

 

37,359

Electronic Equipment & Components - 1.1%

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

4,540

4,339

Itron, Inc. 2.5% 8/1/26

5,000

5,272

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

$ 3,649

SYNNEX Corp. 4% 5/15/18 (g)

10,000

10,442

 

23,702

Internet Software & Services - 0.5%

VeriSign, Inc. 3.25% 8/15/37

10,000

10,155

IT Services - 1.8%

Alliance Data Systems Corp. 4.75% 5/15/14

10,200

13,936

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

8,000

0

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

6,000

5,895

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

8,100

8,617

Telvent GIT SA 5.5% 4/15/15 (g)

10,000

9,513

 

37,961

Semiconductors & Semiconductor Equipment - 7.8%

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

11,917

11,664

Amkor Technology, Inc. 6% 4/15/14

10,890

20,223

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

4,000

1,160

Intel Corp. 3.25% 8/1/39 (g)

58,000

64,972

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

6,130

8,973

ON Semiconductor Corp.:

1.875% 12/15/25 (g)

3,750

4,188

2.625% 12/15/26

35,330

33,674

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

10,000

10,469

SunPower Corp. 4.75% 4/15/14

2,020

1,644

Xilinx, Inc. 3.125% 3/15/37

10,000

8,996

 

165,963

Software - 0.4%

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

9,085

9,443

TOTAL INFORMATION TECHNOLOGY

322,875

MATERIALS - 2.3%

Chemicals - 1.3%

Ferro Corp. 6.5% 8/15/13

27,000

27,675

Containers & Packaging - 0.2%

Owens-Brockway Glass Container, Inc. 3% 6/1/15 (g)

5,010

4,754

Metals & Mining - 0.8%

ArcelorMittal SA 5% 5/15/14

2,170

2,676

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

MATERIALS - continued

Metals & Mining - continued

Goldcorp, Inc. 2% 8/1/14

$ 5,000

$ 6,088

Newmont Mining Corp. 1.625% 7/15/17

5,000

7,253

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

860

960

 

16,977

TOTAL MATERIALS

49,406

TELECOMMUNICATION SERVICES - 2.1%

Diversified Telecommunication Services - 0.8%

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

10,000

9,500

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

6,000

6,780

 

16,280

Wireless Telecommunication Services - 1.3%

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

33,000

28,628

TOTAL TELECOMMUNICATION SERVICES

44,908

TOTAL CONVERTIBLE BONDS

1,342,570

Nonconvertible Bonds - 0.5%

CONSUMER DISCRETIONARY - 0.1%

Hotels, Restaurants & Leisure - 0.1%

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

2,278

2,278

FINANCIALS - 0.4%

Consumer Finance - 0.4%

GMAC LLC:

7.5% 12/31/13

4,264

4,349

8% 12/31/18

3,812

3,669

 

8,018

TOTAL NONCONVERTIBLE BONDS

10,296

TOTAL CORPORATE BONDS

(Cost $1,363,304)

1,352,866

Common Stocks - 13.2%

Shares

Value (000s)

CONSUMER DISCRETIONARY - 1.7%

Auto Components - 0.4%

Johnson Controls, Inc.

344,134

$ 9,130

Diversified Consumer Services - 0.4%

Service Corp. International

1,143,000

8,790

Hotels, Restaurants & Leisure - 0.9%

Ambassadors International, Inc. (a)(h)

230,377

615

WMS Industries, Inc. (a)

515,671

18,224

 

18,839

Media - 0.0%

HMH Holdings, Inc. (a)(i)

52,880

304

HMH Holdings, Inc. warrants 3/9/17 (a)

164,823

82

 

386

TOTAL CONSUMER DISCRETIONARY

37,145

ENERGY - 0.3%

Oil, Gas & Consumable Fuels - 0.3%

McMoRan Exploration Co. (a)(f)

450,000

6,386

FINANCIALS - 5.8%

Commercial Banks - 3.2%

Huntington Bancshares, Inc.

5,820,500

30,790

KeyCorp

5,014,100

36,954

 

67,744

Diversified Financial Services - 2.6%

Bank of America Corp.

4,481,985

55,801

TOTAL FINANCIALS

123,545

INFORMATION TECHNOLOGY - 1.9%

Communications Equipment - 0.7%

Finisar Corp. (a)(f)

1,174,120

15,017

Electronic Equipment & Components - 0.4%

Viasystems Group, Inc. (a)

549,643

7,843

Semiconductors & Semiconductor Equipment - 0.8%

Amkor Technology, Inc. (a)

843,200

4,275

ON Semiconductor Corp. (a)

2,169,500

13,408

 

17,683

TOTAL INFORMATION TECHNOLOGY

40,543

Common Stocks - continued

Shares

Value (000s)

MATERIALS - 3.3%

Chemicals - 3.3%

Celanese Corp. Class A

2,661,930

$ 71,074

UTILITIES - 0.2%

Independent Power Producers & Energy Traders - 0.2%

NRG Energy, Inc. (a)

167,000

3,393

TOTAL COMMON STOCKS

(Cost $270,763)

282,086

Convertible Preferred Stocks - 21.8%

 

 

 

 

CONSUMER DISCRETIONARY - 2.1%

Automobiles - 1.0%

Ford Motor Co. Capital Trust II 6.50%

450,000

20,772

Leisure Equipment & Products - 0.5%

Callaway Golf Co. 7.50%

100,000

10,613

Media - 0.6%

Interpublic Group of Companies, Inc. 5.25%

10,000

8,781

LodgeNet Entertainment Corp. 10.00% (g)

4,997

4,495

 

13,276

TOTAL CONSUMER DISCRETIONARY

44,661

CONSUMER STAPLES - 2.3%

Food Products - 2.3%

Archer Daniels Midland Co. 6.25%

600,000

24,606

Bunge Ltd.:

4.875%

237,000

19,641

5.125%

10,000

5,191

 

49,438

ENERGY - 6.7%

Oil, Gas & Consumable Fuels - 6.7%

Apache Corp. 6.00% (a)

94,200

5,090

El Paso Corp.:

4.99% (g)

119,290

125,240

4.99%

10,000

10,500

Goodrich Petroleum Corp. 5.375%

100,000

3,060

 

143,890

Convertible Preferred Stocks - continued

Shares

Value (000s)

FINANCIALS - 9.3%

Commercial Banks - 5.7%

Huntington Bancshares, Inc. 8.50%

2,100

$ 2,174

Wells Fargo & Co. 7.50%

120,550

119,103

 

121,277

Diversified Financial Services - 3.3%

Bank of America Corp. Series L, 7.25%

47,085

44,731

Citigroup, Inc. 7.50%

215,400

24,653

 

69,384

Insurance - 0.3%

Assured Guaranty Ltd. 8.50%

100,000

6,579

TOTAL FINANCIALS

197,240

HEALTH CARE - 1.4%

Health Care Providers & Services - 1.4%

Tenet Healthcare Corp. 7.00%

40,000

29,793

TOTAL CONVERTIBLE PREFERRED STOCKS

(Cost $492,456)

465,022

Money Market Funds - 1.9%

 

 

 

 

Fidelity Cash Central Fund, 0.24% (b)

23,293,577

23,294

Fidelity Securities Lending Cash Central Fund, 0.27% (b)(c)

16,293,425

16,293

TOTAL MONEY MARKET FUNDS

(Cost $39,587)

39,587

Cash Equivalents - 0.1%

Maturity Amount (000s)

Value (000s)

Investments in repurchase agreements in a joint trading account at 0.24%, dated 8/31/10 due 9/1/10 (Collateralized by U.S. Government Obligations) #
(Cost $2,529)

$ 2,529

$ 2,529

TOTAL INVESTMENT PORTFOLIO - 100.4%

(Cost $2,168,639)

2,142,090

NET OTHER ASSETS (LIABILITIES) - (0.4)%

(9,417)

NET ASSETS - 100%

$ 2,132,673

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 - Security 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 $453,093,000 or 21.2% of net assets.

(h) Affiliated company

(i) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $304,000 or 0.0% of net assets.

Additional information on each holding is as follows:

Security

Acquisition Date

Acquisition Cost (000s)

HMH Holdings, Inc.

8/1/08 - 12/31/09

$ 6,902

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

Repurchase Agreement / Counterparty

Value
(Amounts in thousands)

$2,529,000 due 9/01/10 at 0.24%

BNP Paribas Securities Corp.

$ 1,105

Repurchase Agreement / Counterparty

Value
(Amounts in thousands)

Banc of America Securities LLC

414

Barclays Capital, Inc.

1,010

 

$ 2,529

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

$ 150

Fidelity Securities Lending Cash Central Fund

40

Total

$ 190

Other Affiliated Issuers

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

Affiliate
(Amounts in thousands)

Value
beginning of
period

Purchases

Sales
Proceeds

Dividend
Income

Value
end of
period

Ambassadors International, Inc.

$ 758

-

-

-

$ 615

Other Information

The following is a summary of the inputs used, as of August 31, 2010, involving the Fund's assets and liabilities carried at fair 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

$ 81,806

$ 47,372

$ 34,048

$ 386

Consumer Staples

49,438

-

49,438

-

Energy

150,276

11,476

138,800

-

Financials

320,785

168,276

152,509

-

Health Care

29,793

-

29,793

-

Information Technology

40,543

40,543

-

-

Materials

71,074

71,074

-

-

Utilities

3,393

3,393

-

-

Corporate Bonds

1,352,866

-

1,350,588

2,278

Money Market Funds

39,587

39,587

-

-

Cash Equivalents

2,529

-

2,529

-

Total Investments in Securities:

$ 2,142,090

$ 381,721

$ 1,757,705

$ 2,664

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

(Amounts in thousands)

 

Investments in Securities:

Beginning Balance

$ 3,577

Total Realized Gain (Loss)

6,233

Total Unrealized Gain (Loss)

1,141

Cost of Purchases

479

Proceeds of Sales

(9,558)

Amortization/Accretion

791

Transfers in to Level 3

1

Transfers out of Level 3

-

Ending Balance

$ 2,664

The change in unrealized gain (loss) for the period attributable to Level 3 securities held at August 31, 2010

$ (1)

The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges.

Income Tax Information

At August 31, 2010, the cost of investment securities for income tax purposes was $2,162,129,000. Net unrealized depreciation aggregated $20,039,000, of which $161,687,000 related to appreciated investment securities and $181,726,000 related to depreciated investment securities.

Investment Valuation

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

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

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

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

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

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, 2010

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

1.884073.101

ACVS-QTLY-1010

Investments August 31, 2010 (Unaudited)

Showing Percentage of Net Assets

Corporate Bonds - 63.4%

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - 62.9%

CONSUMER DISCRETIONARY - 6.1%

Auto Components - 0.1%

BorgWarner, Inc. 3.5% 4/15/12

$ 910

$ 1,307

Automobiles - 2.6%

Ford Motor Co. 4.25% 11/15/16

40,000

55,536

Diversified Consumer Services - 0.7%

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

490

920

Regis Corp. 5% 7/15/14

4,230

5,372

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

11,000

9,522

 

15,814

Hotels, Restaurants & Leisure - 0.2%

MGM Mirage, Inc. 4.25% 4/15/15 (g)

6,300

5,162

Household Durables - 0.1%

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

590

1,118

Media - 1.6%

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

14,000

14,315

Virgin Media, Inc. 6.5% 11/15/16

8,000

10,969

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

10,000

9,719

 

35,003

Specialty Retail - 0.8%

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

3,000

2,929

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

10,000

8,038

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

1,180

1,177

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

4,533

4,527

 

16,671

TOTAL CONSUMER DISCRETIONARY

130,611

CONSUMER STAPLES - 3.7%

Beverages - 0.7%

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

14,000

15,305

Food & Staples Retailing - 1.2%

Nash-Finch Co. 1.6314% 3/15/35 (e)

24,480

11,705

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

14,000

13,125

 

24,830

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

CONSUMER STAPLES - continued

Food Products - 1.8%

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

$ 22,250

$ 22,751

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

13,000

15,519

 

38,270

TOTAL CONSUMER STAPLES

78,405

ENERGY - 15.1%

Energy Equipment & Services - 2.7%

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

10,000

11,819

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

10,000

6,538

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

30,000

20,727

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

5,000

4,209

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

4,500

6,277

SESI LLC 1.5% 12/15/26 (e)(g)

7,000

6,677

 

56,247

Oil, Gas & Consumable Fuels - 12.4%

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

35,000

37,303

Chesapeake Energy Corp. 2.5% 5/15/37

70,250

57,998

Goodrich Petroleum Corp. 3.25% 12/1/26

6,000

5,790

International Coal Group, Inc. 4% 4/1/17

2,160

2,264

Massey Energy Co. 3.25% 8/1/15

5,000

4,314

Peabody Energy Corp. 4.75% 12/15/66

102,250

105,318

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

20,000

23,250

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

14,500

15,270

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

17,810

13,375

 

264,882

TOTAL ENERGY

321,129

FINANCIALS - 1.4%

Diversified Financial Services - 1.4%

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

30,000

29,441

HEALTH CARE - 5.6%

Health Care Equipment & Supplies - 3.1%

Alere, Inc. 3% 5/15/16

10,000

8,900

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

8,500

8,575

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

HEALTH CARE - continued

Health Care Equipment & Supplies - continued

Inverness Medical Innovations, Inc. 3% 5/15/16 (g)

$ 21,000

$ 18,690

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

15,000

14,151

Medtronic, Inc. 1.625% 4/15/13

10,000

10,010

SonoSite, Inc. 3.75% 7/15/14

7,000

7,326

 

67,652

Health Care Providers & Services - 0.3%

Omnicare, Inc. 3.25% 12/15/35

7,000

5,828

Life Sciences Tools & Services - 0.2%

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

4,000

3,768

Pharmaceuticals - 2.0%

Biovail Corp. 5.375% 8/1/14

10,000

16,333

Nektar Therapeutics 3.25% 9/28/12

9,000

8,674

Valeant Pharmaceuticals International 4% 11/15/13

10,000

18,250

 

43,257

TOTAL HEALTH CARE

120,505

INDUSTRIALS - 11.5%

Aerospace & Defense - 1.0%

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

14,000

13,860

GenCorp, Inc. 4.0625% 12/31/39 (g)

7,830

6,665

 

20,525

Airlines - 3.9%

AMR Corp. 6.25% 10/15/14

17,990

16,941

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

9,280

12,308

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

11,200

24,120

UAL Corp.:

4.5% 6/30/21 (g)

10,500

10,486

4.5% 6/30/21

5,000

4,994

6% 10/15/29

3,600

9,224

US Airways Group, Inc. 7% 9/30/20 (g)

4,810

4,810

 

82,883

Commercial Services & Supplies - 1.3%

Metalico, Inc. 7% 4/30/28

32,500

27,658

Construction & Engineering - 0.4%

MasTec, Inc. 4.25% 12/15/14 (g)

8,000

7,680

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

INDUSTRIALS - continued

Electrical Equipment - 0.6%

General Cable Corp. 4.5% 11/15/29 (e)

$ 14,800

$ 12,648

Industrial Conglomerates - 0.1%

Textron, Inc. 4.5% 5/1/13

1,440

2,139

Machinery - 1.6%

Greenbrier Companies, Inc.:

2.375% 5/15/26 (g)

5,500

4,565

2.375% 5/15/26

8,000

6,640

Terex Corp. 4% 6/1/15

8,090

10,727

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

15,000

12,394

 

34,326

Marine - 1.0%

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

34,000

21,080

Road & Rail - 1.6%

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

28,000

35,168

Trading Companies & Distributors - 0.0%

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

960

1,183

TOTAL INDUSTRIALS

245,290

INFORMATION TECHNOLOGY - 15.1%

Communications Equipment - 1.8%

CommScope, Inc. 3.25% 7/1/15

10,000

10,026

Finisar Corp. 5% 10/15/29 (g)

2,500

3,569

JDS Uniphase Corp. 1% 5/15/26 (g)

14,000

12,880

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

3,000

3,011

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

10,000

8,806

 

38,292

Computers & Peripherals - 1.7%

EMC Corp. 1.75% 12/1/13 (g)

17,000

21,686

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

5,000

3,713

SanDisk Corp. 1% 5/15/13

13,000

11,960

 

37,359

Electronic Equipment & Components - 1.1%

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

4,540

4,339

Itron, Inc. 2.5% 8/1/26

5,000

5,272

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

$ 3,649

SYNNEX Corp. 4% 5/15/18 (g)

10,000

10,442

 

23,702

Internet Software & Services - 0.5%

VeriSign, Inc. 3.25% 8/15/37

10,000

10,155

IT Services - 1.8%

Alliance Data Systems Corp. 4.75% 5/15/14

10,200

13,936

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

8,000

0

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

6,000

5,895

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

8,100

8,617

Telvent GIT SA 5.5% 4/15/15 (g)

10,000

9,513

 

37,961

Semiconductors & Semiconductor Equipment - 7.8%

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

11,917

11,664

Amkor Technology, Inc. 6% 4/15/14

10,890

20,223

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

4,000

1,160

Intel Corp. 3.25% 8/1/39 (g)

58,000

64,972

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

6,130

8,973

ON Semiconductor Corp.:

1.875% 12/15/25 (g)

3,750

4,188

2.625% 12/15/26

35,330

33,674

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

10,000

10,469

SunPower Corp. 4.75% 4/15/14

2,020

1,644

Xilinx, Inc. 3.125% 3/15/37

10,000

8,996

 

165,963

Software - 0.4%

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

9,085

9,443

TOTAL INFORMATION TECHNOLOGY

322,875

MATERIALS - 2.3%

Chemicals - 1.3%

Ferro Corp. 6.5% 8/15/13

27,000

27,675

Containers & Packaging - 0.2%

Owens-Brockway Glass Container, Inc. 3% 6/1/15 (g)

5,010

4,754

Metals & Mining - 0.8%

ArcelorMittal SA 5% 5/15/14

2,170

2,676

Corporate Bonds - continued

 

Principal Amount (000s)

Value (000s)

Convertible Bonds - continued

MATERIALS - continued

Metals & Mining - continued

Goldcorp, Inc. 2% 8/1/14

$ 5,000

$ 6,088

Newmont Mining Corp. 1.625% 7/15/17

5,000

7,253

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

860

960

 

16,977

TOTAL MATERIALS

49,406

TELECOMMUNICATION SERVICES - 2.1%

Diversified Telecommunication Services - 0.8%

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

10,000

9,500

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

6,000

6,780

 

16,280

Wireless Telecommunication Services - 1.3%

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

33,000

28,628

TOTAL TELECOMMUNICATION SERVICES

44,908

TOTAL CONVERTIBLE BONDS

1,342,570

Nonconvertible Bonds - 0.5%

CONSUMER DISCRETIONARY - 0.1%

Hotels, Restaurants & Leisure - 0.1%

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

2,278

2,278

FINANCIALS - 0.4%

Consumer Finance - 0.4%

GMAC LLC:

7.5% 12/31/13

4,264

4,349

8% 12/31/18

3,812

3,669

 

8,018

TOTAL NONCONVERTIBLE BONDS

10,296

TOTAL CORPORATE BONDS

(Cost $1,363,304)

1,352,866

Common Stocks - 13.2%

Shares

Value (000s)

CONSUMER DISCRETIONARY - 1.7%

Auto Components - 0.4%

Johnson Controls, Inc.

344,134

$ 9,130

Diversified Consumer Services - 0.4%

Service Corp. International

1,143,000

8,790

Hotels, Restaurants & Leisure - 0.9%

Ambassadors International, Inc. (a)(h)

230,377

615

WMS Industries, Inc. (a)

515,671

18,224

 

18,839

Media - 0.0%

HMH Holdings, Inc. (a)(i)

52,880

304

HMH Holdings, Inc. warrants 3/9/17 (a)

164,823

82

 

386

TOTAL CONSUMER DISCRETIONARY

37,145

ENERGY - 0.3%

Oil, Gas & Consumable Fuels - 0.3%

McMoRan Exploration Co. (a)(f)

450,000

6,386

FINANCIALS - 5.8%

Commercial Banks - 3.2%

Huntington Bancshares, Inc.

5,820,500

30,790

KeyCorp

5,014,100

36,954

 

67,744

Diversified Financial Services - 2.6%

Bank of America Corp.

4,481,985

55,801

TOTAL FINANCIALS

123,545

INFORMATION TECHNOLOGY - 1.9%

Communications Equipment - 0.7%

Finisar Corp. (a)(f)

1,174,120

15,017

Electronic Equipment & Components - 0.4%

Viasystems Group, Inc. (a)

549,643

7,843

Semiconductors & Semiconductor Equipment - 0.8%

Amkor Technology, Inc. (a)

843,200

4,275

ON Semiconductor Corp. (a)

2,169,500

13,408

 

17,683

TOTAL INFORMATION TECHNOLOGY

40,543

Common Stocks - continued

Shares

Value (000s)

MATERIALS - 3.3%

Chemicals - 3.3%

Celanese Corp. Class A

2,661,930

$ 71,074

UTILITIES - 0.2%

Independent Power Producers & Energy Traders - 0.2%

NRG Energy, Inc. (a)

167,000

3,393

TOTAL COMMON STOCKS

(Cost $270,763)

282,086

Convertible Preferred Stocks - 21.8%

 

 

 

 

CONSUMER DISCRETIONARY - 2.1%

Automobiles - 1.0%

Ford Motor Co. Capital Trust II 6.50%

450,000

20,772

Leisure Equipment & Products - 0.5%

Callaway Golf Co. 7.50%

100,000

10,613

Media - 0.6%

Interpublic Group of Companies, Inc. 5.25%

10,000

8,781

LodgeNet Entertainment Corp. 10.00% (g)

4,997

4,495

 

13,276

TOTAL CONSUMER DISCRETIONARY

44,661

CONSUMER STAPLES - 2.3%

Food Products - 2.3%

Archer Daniels Midland Co. 6.25%

600,000

24,606

Bunge Ltd.:

4.875%

237,000

19,641

5.125%

10,000

5,191

 

49,438

ENERGY - 6.7%

Oil, Gas & Consumable Fuels - 6.7%

Apache Corp. 6.00% (a)

94,200

5,090

El Paso Corp.:

4.99% (g)

119,290

125,240

4.99%

10,000

10,500

Goodrich Petroleum Corp. 5.375%

100,000

3,060

 

143,890

Convertible Preferred Stocks - continued

Shares

Value (000s)

FINANCIALS - 9.3%

Commercial Banks - 5.7%

Huntington Bancshares, Inc. 8.50%

2,100

$ 2,174

Wells Fargo & Co. 7.50%

120,550

119,103

 

121,277

Diversified Financial Services - 3.3%

Bank of America Corp. Series L, 7.25%

47,085

44,731

Citigroup, Inc. 7.50%

215,400

24,653

 

69,384

Insurance - 0.3%

Assured Guaranty Ltd. 8.50%

100,000

6,579

TOTAL FINANCIALS

197,240

HEALTH CARE - 1.4%

Health Care Providers & Services - 1.4%

Tenet Healthcare Corp. 7.00%

40,000

29,793

TOTAL CONVERTIBLE PREFERRED STOCKS

(Cost $492,456)

465,022

Money Market Funds - 1.9%

 

 

 

 

Fidelity Cash Central Fund, 0.24% (b)

23,293,577

23,294

Fidelity Securities Lending Cash Central Fund, 0.27% (b)(c)

16,293,425

16,293

TOTAL MONEY MARKET FUNDS

(Cost $39,587)

39,587

Cash Equivalents - 0.1%

Maturity Amount (000s)

Value (000s)

Investments in repurchase agreements in a joint trading account at 0.24%, dated 8/31/10 due 9/1/10 (Collateralized by U.S. Government Obligations) #
(Cost $2,529)

$ 2,529

$ 2,529

TOTAL INVESTMENT PORTFOLIO - 100.4%

(Cost $2,168,639)

2,142,090

NET OTHER ASSETS (LIABILITIES) - (0.4)%

(9,417)

NET ASSETS - 100%

$ 2,132,673

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 - Security 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 $453,093,000 or 21.2% of net assets.

(h) Affiliated company

(i) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $304,000 or 0.0% of net assets.

Additional information on each holding is as follows:

Security

Acquisition Date

Acquisition Cost (000s)

HMH Holdings, Inc.

8/1/08 - 12/31/09

$ 6,902

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

Repurchase Agreement / Counterparty

Value
(Amounts in thousands)

$2,529,000 due 9/01/10 at 0.24%

BNP Paribas Securities Corp.

$ 1,105

Repurchase Agreement / Counterparty

Value
(Amounts in thousands)

Banc of America Securities LLC

414

Barclays Capital, Inc.

1,010

 

$ 2,529

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

$ 150

Fidelity Securities Lending Cash Central Fund

40

Total

$ 190

Other Affiliated Issuers

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

Affiliate
(Amounts in thousands)

Value
beginning of
period

Purchases

Sales
Proceeds

Dividend
Income

Value
end of
period

Ambassadors International, Inc.

$ 758

-

-

-

$ 615

Other Information

The following is a summary of the inputs used, as of August 31, 2010, involving the Fund's assets and liabilities carried at fair 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

$ 81,806

$ 47,372

$ 34,048

$ 386

Consumer Staples

49,438

-

49,438

-

Energy

150,276

11,476

138,800

-

Financials

320,785

168,276

152,509

-

Health Care

29,793

-

29,793

-

Information Technology

40,543

40,543

-

-

Materials

71,074

71,074

-

-

Utilities

3,393

3,393

-

-

Corporate Bonds

1,352,866

-

1,350,588

2,278

Money Market Funds

39,587

39,587

-

-

Cash Equivalents

2,529

-

2,529

-

Total Investments in Securities:

$ 2,142,090

$ 381,721

$ 1,757,705

$ 2,664

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

(Amounts in thousands)

 

Investments in Securities:

Beginning Balance

$ 3,577

Total Realized Gain (Loss)

6,233

Total Unrealized Gain (Loss)

1,141

Cost of Purchases

479

Proceeds of Sales

(9,558)

Amortization/Accretion

791

Transfers in to Level 3

1

Transfers out of Level 3

-

Ending Balance

$ 2,664

The change in unrealized gain (loss) for the period attributable to Level 3 securities held at August 31, 2010

$ (1)

The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges.

Income Tax Information

At August 31, 2010, the cost of investment securities for income tax purposes was $2,162,129,000. Net unrealized depreciation aggregated $20,039,000, of which $161,687,000 related to appreciated investment securities and $181,726,000 related to depreciated investment securities.

Investment Valuation

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

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

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

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

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

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, 2010 

1.805774.106

EII-QTLY-1010

Investments August 31, 2010 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 97.7%

Shares

Value (000s)

CONSUMER DISCRETIONARY - 14.0%

Auto Components - 1.5%

Johnson Controls, Inc.

1,384,792

$ 36,739

Michelin CGDE Series B

199,256

14,802

The Goodyear Tire & Rubber Co. (a)

1,988,500

18,374

 

69,915

Automobiles - 1.3%

Daimler AG (Germany) (a)

280,476

13,637

Fiat SpA

943,300

11,053

Harley-Davidson, Inc.

1,291,958

31,420

Thor Industries, Inc.

192,700

4,498

Winnebago Industries, Inc. (a)

374,600

3,214

 

63,822

Diversified Consumer Services - 0.4%

H&R Block, Inc.

1,670,400

21,465

Hotels, Restaurants & Leisure - 0.1%

Sands China Ltd.

4,090,800

6,353

Household Durables - 3.9%

KB Home

276,700

2,853

Lennar Corp. Class A

562,700

7,411

Newell Rubbermaid, Inc.

1,675,100

25,160

Pulte Group, Inc. (a)

639,300

5,134

Stanley Black & Decker, Inc.

664,086

35,622

Techtronic Industries Co. Ltd.

3,853,000

3,348

Toll Brothers, Inc. (a)

4,402,250

76,071

Whirlpool Corp.

360,488

26,734

 

182,333

Internet & Catalog Retail - 0.2%

Liberty Media Corp. Interactive Series A (a)

776,284

8,190

Media - 2.3%

Belo Corp. Series A (a)

912,073

4,770

Comcast Corp.:

Class A

998,400

17,093

Class A (special) (non-vtg.)

839,800

13,496

The Walt Disney Co.

1,001,714

32,646

Time Warner, Inc.

1,371,317

41,112

 

109,117

Multiline Retail - 1.8%

Kohl's Corp. (a)

553,812

26,018

Macy's, Inc.

1,036,419

20,148

Common Stocks - continued

Shares

Value (000s)

CONSUMER DISCRETIONARY - continued

Multiline Retail - continued

Target Corp.

696,000

$ 35,607

Tuesday Morning Corp. (a)

468,400

1,738

 

83,511

Specialty Retail - 2.2%

Home Depot, Inc.

1,929,200

53,651

Lowe's Companies, Inc.

966,000

19,610

OfficeMax, Inc. (a)

445,500

4,339

RadioShack Corp. (e)

523,800

9,680

Staples, Inc.

907,116

16,119

 

103,399

Textiles, Apparel & Luxury Goods - 0.3%

Phillips-Van Heusen Corp.

159,454

7,284

Warnaco Group, Inc. (a)

114,059

4,777

 

12,061

TOTAL CONSUMER DISCRETIONARY

660,166

CONSUMER STAPLES - 4.7%

Beverages - 0.8%

Carlsberg AS Series B

155,100

14,616

The Coca-Cola Co.

453,790

25,376

 

39,992

Food & Staples Retailing - 1.1%

CVS Caremark Corp.

578,700

15,625

Kroger Co.

1,003,900

19,807

Walgreen Co.

567,427

15,252

Winn-Dixie Stores, Inc. (a)

547,110

3,589

 

54,273

Food Products - 0.7%

Nestle SA

592,937

30,722

Household Products - 1.1%

Kimberly-Clark Corp.

17,900

1,153

Procter & Gamble Co.

829,999

49,526

 

50,679

Tobacco - 1.0%

Philip Morris International, Inc.

889,359

45,749

TOTAL CONSUMER STAPLES

221,415

Common Stocks - continued

Shares

Value (000s)

ENERGY - 14.6%

Energy Equipment & Services - 2.5%

Baker Hughes, Inc.

842,563

$ 31,664

Halliburton Co.

801,745

22,617

Noble Corp.

1,101,291

34,272

Pride International, Inc. (a)

904,329

21,297

Schlumberger Ltd.

23,405

1,248

Transocean Ltd. (a)

114,028

5,804

 

116,902

Oil, Gas & Consumable Fuels - 12.1%

Anadarko Petroleum Corp.

449,398

20,668

Apache Corp.

201,200

18,078

BP PLC sponsored ADR

627,159

21,844

Chevron Corp.

1,607,470

119,210

ConocoPhillips

1,100,400

57,694

CONSOL Energy, Inc.

515,700

16,606

Devon Energy Corp.

204,786

12,345

EOG Resources, Inc.

159,486

13,855

Exxon Mobil Corp.

2,098,892

124,170

Marathon Oil Corp.

755,668

23,040

Occidental Petroleum Corp.

458,195

33,485

Royal Dutch Shell PLC:

Class A sponsored ADR

1,401,200

74,334

Class B ADR

235,100

12,068

Southwestern Energy Co. (a)

678,330

22,195

Ultra Petroleum Corp. (a)

130,703

5,099

 

574,691

TOTAL ENERGY

691,593

FINANCIALS - 26.4%

Capital Markets - 4.7%

Bank of New York Mellon Corp.

1,544,610

37,488

Bank Sarasin & Co. Ltd. Series B (Reg.)

185,123

6,711

Goldman Sachs Group, Inc.

349,497

47,860

Morgan Stanley

2,684,992

66,292

State Street Corp.

797,900

27,990

UBS AG (a)

621,000

10,420

UBS AG (NY Shares) (a)

1,585,835

26,690

 

223,451

Commercial Banks - 8.4%

Associated Banc-Corp.

1,929,552

23,270

Common Stocks - continued

Shares

Value (000s)

FINANCIALS - continued

Commercial Banks - continued

Barclays PLC

2,355,803

$ 10,817

BB&T Corp.

772,623

17,090

Comerica, Inc.

455,900

15,688

Huntington Bancshares, Inc.

1,520,800

8,045

KeyCorp

3,006,674

22,159

Marshall & Ilsley Corp.

807,676

5,290

Mitsubishi UFJ Financial Group, Inc. sponsored ADR

3,711,800

17,631

Mizuho Financial Group, Inc.

3,888,600

5,963

PNC Financial Services Group, Inc.

1,958,800

99,820

U.S. Bancorp, Delaware

1,389,500

28,902

Wells Fargo & Co.

5,933,408

139,732

 

394,407

Consumer Finance - 1.7%

American Express Co.

603,870

24,076

Capital One Financial Corp.

623,033

23,588

Discover Financial Services

1,697,100

24,625

SLM Corp. (a)

867,281

9,583

 

81,872

Diversified Financial Services - 8.3%

Bank of America Corp.

11,346,273

141,261

Citigroup, Inc. (a)

13,110,598

48,771

CME Group, Inc.

35,388

8,779

JPMorgan Chase & Co.

4,529,153

164,677

Moody's Corp. (e)

1,300,186

27,486

 

390,974

Insurance - 1.7%

Berkshire Hathaway, Inc. Class B (a)

107,800

8,492

First American Financial Corp.

447,275

6,633

Hartford Financial Services Group, Inc.

438,600

8,842

Marsh & McLennan Companies, Inc.

389,700

9,244

Montpelier Re Holdings Ltd.

705,135

11,169

The Travelers Companies, Inc.

298,052

14,599

Unum Group

700,461

14,044

XL Capital Ltd. Class A

386,032

6,914

 

79,937

Real Estate Investment Trusts - 1.0%

Boston Properties, Inc.

125,575

10,222

Common Stocks - continued

Shares

Value (000s)

FINANCIALS - continued

Real Estate Investment Trusts - continued

HCP, Inc.

955,097

$ 33,639

Segro PLC

1,191,112

4,940

 

48,801

Real Estate Management & Development - 0.6%

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

1,043,300

17,131

Indiabulls Real Estate Ltd. (a)

2,558,497

9,103

Unite Group PLC (a)

631,797

1,822

 

28,056

TOTAL FINANCIALS

1,247,498

HEALTH CARE - 8.4%

Biotechnology - 1.3%

Amgen, Inc. (a)

657,100

33,538

Cephalon, Inc. (a)

141,400

8,005

Gilead Sciences, Inc. (a)

620,159

19,758

 

61,301

Health Care Equipment & Supplies - 1.1%

C. R. Bard, Inc.

188,805

14,506

CareFusion Corp. (a)

761,943

16,443

Covidien PLC

152,090

5,375

Stryker Corp.

376,200

16,248

 

52,572

Health Care Providers & Services - 0.5%

UnitedHealth Group, Inc.

704,700

22,353

Pharmaceuticals - 5.5%

Johnson & Johnson

782,824

44,637

Merck & Co., Inc.

2,403,228

84,497

Pfizer, Inc.

6,776,735

107,953

Sanofi-Aventis

440,127

25,200

 

262,287

TOTAL HEALTH CARE

398,513

INDUSTRIALS - 11.0%

Aerospace & Defense - 2.9%

Goodrich Corp.

118,058

8,085

Honeywell International, Inc.

1,022,400

39,966

Spirit AeroSystems Holdings, Inc. Class A (a)

756,800

14,637

Common Stocks - continued

Shares

Value (000s)

INDUSTRIALS - continued

Aerospace & Defense - continued

The Boeing Co.

455,717

$ 27,858

United Technologies Corp.

706,128

46,047

 

136,593

Building Products - 0.4%

Armstrong World Industries, Inc. (a)

111,359

4,376

Masco Corp.

1,273,300

13,357

 

17,733

Commercial Services & Supplies - 0.2%

Pitney Bowes, Inc.

326,700

6,286

Republic Services, Inc.

128,700

3,788

 

10,074

Construction & Engineering - 0.7%

Fluor Corp.

310,894

13,885

KBR, Inc.

901,526

20,915

 

34,800

Industrial Conglomerates - 3.6%

General Electric Co.

5,122,586

74,175

Koninklijke Philips Electronics NV unit

380,200

10,611

Rheinmetall AG

326,942

18,100

Siemens AG sponsored ADR

436,500

39,516

Textron, Inc.

789,400

13,475

Tyco International Ltd.

364,800

13,600

 

169,477

Machinery - 2.4%

Briggs & Stratton Corp.

1,106,995

20,092

Caterpillar, Inc.

95,700

6,236

Cummins, Inc.

390,500

29,057

Eaton Corp.

86,500

6,010

Ingersoll-Rand Co. Ltd.

622,053

20,235

Kennametal, Inc.

442,300

11,146

Navistar International Corp. (a)

246,330

10,316

Parker Hannifin Corp.

37,100

2,195

SPX Corp.

134,400

7,534

 

112,821

Common Stocks - continued

Shares

Value (000s)

INDUSTRIALS - continued

Road & Rail - 0.8%

CSX Corp.

370,300

$ 18,474

Union Pacific Corp.

261,500

19,074

 

37,548

TOTAL INDUSTRIALS

519,046

INFORMATION TECHNOLOGY - 6.1%

Communications Equipment - 0.6%

Cisco Systems, Inc. (a)

821,015

16,461

Comverse Technology, Inc. (a)

1,494,580

7,772

Motorola, Inc. (a)

873,192

6,575

 

30,808

Computers & Peripherals - 0.8%

Hewlett-Packard Co.

966,675

37,198

Electronic Equipment & Components - 1.3%

Agilent Technologies, Inc. (a)

662,484

17,867

Arrow Electronics, Inc. (a)

237,538

5,435

Avnet, Inc. (a)

475,100

10,880

Tyco Electronics Ltd.

1,039,071

25,478

 

59,660

IT Services - 0.3%

CoreLogic, Inc. (a)

270,575

4,673

MoneyGram International, Inc. (a)

340,342

687

Visa, Inc. Class A

112,961

7,792

 

13,152

Office Electronics - 0.3%

Xerox Corp.

1,570,023

13,251

Semiconductors & Semiconductor Equipment - 2.8%

Analog Devices, Inc.

202,300

5,640

Applied Materials, Inc.

2,710,500

28,162

Intel Corp.

2,962,700

52,499

Micron Technology, Inc. (a)

1,472,300

9,518

National Semiconductor Corp.

1,571,502

19,817

Samsung Electronics Co. Ltd.

11,955

7,538

Teradyne, Inc. (a)

303,600

2,726

Varian Semiconductor Equipment Associates, Inc. (a)

331,900

8,238

 

134,138

TOTAL INFORMATION TECHNOLOGY

288,207

Common Stocks - continued

Shares

Value (000s)

MATERIALS - 2.6%

Chemicals - 1.8%

Clariant AG (Reg.) (a)

1,368,862

$ 17,610

Dow Chemical Co.

615,432

14,998

E.I. du Pont de Nemours & Co.

722,609

29,461

Monsanto Co.

251,051

13,218

Wacker Chemie AG

53,700

8,147

 

83,434

Construction Materials - 0.1%

HeidelbergCement AG

177,100

7,104

Metals & Mining - 0.6%

Alcoa, Inc.

1,207,232

12,326

Commercial Metals Co.

407,409

5,309

Freeport-McMoRan Copper & Gold, Inc.

124,737

8,979

 

26,614

Paper & Forest Products - 0.1%

Weyerhaeuser Co.

270,650

4,249

TOTAL MATERIALS

121,401

TELECOMMUNICATION SERVICES - 6.0%

Diversified Telecommunication Services - 5.5%

AT&T, Inc.

4,799,500

129,730

Frontier Communications Corp.

759,173

5,868

Qwest Communications International, Inc.

7,302,900

41,261

Telenet Group Holding NV

38,000

1,134

Verizon Communications, Inc.

2,787,455

82,258

 

260,251

Wireless Telecommunication Services - 0.5%

Sprint Nextel Corp. (a)

6,167,447

25,163

TOTAL TELECOMMUNICATION SERVICES

285,414

UTILITIES - 3.9%

Electric Utilities - 2.7%

Allegheny Energy, Inc.

847,097

19,102

American Electric Power Co., Inc.

1,215,309

43,034

Entergy Corp.

282,700

22,288

FirstEnergy Corp.

1,028,331

37,565

PPL Corp.

143,600

3,900

 

125,889

Common Stocks - continued

Shares

Value (000s)

UTILITIES - continued

Independent Power Producers & Energy Traders - 0.5%

AES Corp. (a)

2,587,200

$ 26,493

Multi-Utilities - 0.7%

Alliant Energy Corp.

375,540

13,151

CMS Energy Corp.

467,200

8,176

PG&E Corp.

131,700

6,158

Public Service Enterprise Group, Inc.

188,162

6,014

 

33,499

TOTAL UTILITIES

185,881

TOTAL COMMON STOCKS

(Cost $4,596,722)

4,619,134

Preferred Stocks - 1.2%

 

 

 

 

Convertible Preferred Stocks - 1.0%

ENERGY - 0.1%

Oil, Gas & Consumable Fuels - 0.1%

Apache Corp. 6.00% (a)

102,900

5,560

FINANCIALS - 0.8%

Commercial Banks - 0.2%

Huntington Bancshares, Inc. 8.50%

7,600

7,866

Diversified Financial Services - 0.2%

Citigroup, Inc. 7.50%

81,000

9,270

Insurance - 0.4%

Hartford Financial Services Group, Inc. Series F 7.25%

285,900

6,317

XL Capital Ltd. 10.75%

462,200

12,512

 

18,829

TOTAL FINANCIALS

35,965

UTILITIES - 0.1%

Electric Utilities - 0.1%

PPL Corp. 9.50% (a)

112,300

6,340

TOTAL CONVERTIBLE PREFERRED STOCKS

47,865

Preferred Stocks - continued

Shares

Value (000s)

Nonconvertible Preferred Stocks - 0.2%

CONSUMER DISCRETIONARY - 0.2%

Automobiles - 0.2%

Volkswagen AG

76,000

$ 7,564

TOTAL PREFERRED STOCKS

(Cost $49,153)

55,429

Convertible Bonds - 0.8%

 

Principal Amount (000s)

 

CONSUMER DISCRETIONARY - 0.6%

Automobiles - 0.3%

Ford Motor Co. 4.25% 11/15/16

$ 9,710

13,481

Hotels, Restaurants & Leisure - 0.2%

MGM Mirage, Inc. 4.25% 4/15/15 (f)

8,780

7,194

Leisure Equipment & Products - 0.0%

Eastman Kodak Co. 7% 4/1/17 (f)

1,890

1,613

Media - 0.1%

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

3,190

3,908

TOTAL CONSUMER DISCRETIONARY

26,196

FINANCIALS - 0.1%

Thrifts & Mortgage Finance - 0.1%

MGIC Investment Corp. 9% 4/1/63 (a)(d)(f)

5,910

5,777

INDUSTRIALS - 0.0%

Airlines - 0.0%

AMR Corp. 6.25% 10/15/14

1,800

1,695

INFORMATION TECHNOLOGY - 0.1%

Semiconductors & Semiconductor Equipment - 0.1%

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

5,220

4,525

TOTAL CONVERTIBLE BONDS

(Cost $35,640)

38,193

Money Market Funds - 0.4%

Shares

Value (000s)

Fidelity Securities Lending Cash Central Fund,0.27% (b)(c)
(Cost $21,049)

21,049,050

$ 21,049

TOTAL INVESTMENT PORTFOLIO - 100.1%

(Cost $4,702,564)

4,733,805

NET OTHER ASSETS (LIABILITIES) - (0.1)%

(5,343)

NET ASSETS - 100%

$ 4,728,462

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

(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 $18,492,000 or 0.4% 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

$ 24

Fidelity Securities Lending Cash Central Fund

531

Total

$ 555

Other Information

The following is a summary of the inputs used, as of August 31, 2010, involving the Fund's assets and liabilities carried at fair 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

$ 667,730

$ 654,093

$ 13,637

$ -

Consumer Staples

221,415

221,415

-

-

Energy

697,153

697,153

-

-

Financials

1,283,463

1,232,810

50,653

-

Health Care

398,513

373,313

25,200

-

Industrials

519,046

519,046

-

-

Information Technology

288,207

288,207

-

-

Materials

121,401

121,401

-

-

Telecommunication Services

285,414

285,414

-

-

Utilities

192,221

185,881

6,340

-

Corporate Bonds

38,193

-

38,193

-

Money Market Funds

21,049

21,049

-

-

Total Investments in Securities:

$ 4,733,805

$ 4,599,782

$ 134,023

$ -

Income Tax Information

At August 31, 2010, the cost of investment securities for income tax purposes was $4,841,577,000. Net unrealized depreciation aggregated $107,772,000, of which $579,949,000 related to appreciated investment securities and $687,721,000 related to depreciated investment securities.

Investment Valuation

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

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

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

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

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

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

Quarterly Report

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

see the fund's most recent prospectus and annual report.

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

or an affiliate.

Quarterly Report

Quarterly Holdings Report

for

Fidelity ® Independence Fund
Independence
Class K

August 31, 2010 

1.805765.106

FRE-QTLY-1010

Investments August 31, 2010 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 99.8%

Shares

Value (000s)

CONSUMER DISCRETIONARY - 16.5%

Automobiles - 1.5%

Bayerische Motoren Werke AG (BMW)

700,000

$ 36,966

Daimler AG (Germany) (a)

300,000

14,586

 

51,552

Hotels, Restaurants & Leisure - 3.6%

Chipotle Mexican Grill, Inc. (a)

150,000

22,625

Ctrip.com International Ltd. sponsored ADR (a)

1,296,900

52,511

Las Vegas Sands Corp. (a)(d)

769,000

21,786

Starwood Hotels & Resorts Worldwide, Inc.

600,000

28,038

 

124,960

Household Durables - 1.5%

Cyrela Brazil Realty SA

1,463,800

18,336

Gafisa SA sponsored ADR (d)

2,584,000

35,582

 

53,918

Internet & Catalog Retail - 2.5%

Amazon.com, Inc. (a)

519,800

64,887

Priceline.com, Inc. (a)

82,000

23,901

 

88,788

Media - 0.3%

Discovery Communications, Inc. (a)

300,000

11,325

Multiline Retail - 2.7%

Dollarama, Inc.

200,000

4,746

Macy's, Inc.

2,970,800

57,752

Nordstrom, Inc.

1,075,100

31,092

 

93,590

Specialty Retail - 1.5%

Tiffany & Co., Inc. (d)

400,000

15,852

Williams-Sonoma, Inc.

1,336,100

34,685

 

50,537

Textiles, Apparel & Luxury Goods - 2.9%

Coach, Inc.

400,000

14,336

Deckers Outdoor Corp. (a)

750,000

32,603

Fossil, Inc. (a)

500,000

23,745

Phillips-Van Heusen Corp.

625,800

28,587

 

99,271

TOTAL CONSUMER DISCRETIONARY

573,941

Common Stocks - continued

Shares

Value (000s)

CONSUMER STAPLES - 1.5%

Personal Products - 1.5%

Estee Lauder Companies, Inc. Class A

471,600

$ 26,443

Hengan International Group Co. Ltd.

2,781,000

24,650

 

51,093

ENERGY - 7.3%

Energy Equipment & Services - 2.2%

Dril-Quip, Inc. (a)

278,300

14,714

Schlumberger Ltd.

1,142,006

60,903

 

75,617

Oil, Gas & Consumable Fuels - 5.1%

Chesapeake Energy Corp.

600,000

12,408

Concho Resources, Inc. (a)

666,300

38,925

ConocoPhillips

100,000

5,243

EXCO Resources, Inc.

500,000

6,725

Occidental Petroleum Corp.

362,100

26,462

Petrohawk Energy Corp. (a)

1,100,000

16,632

Pioneer Natural Resources Co.

600,000

34,692

Southwestern Energy Co. (a)

854,900

27,972

Whiting Petroleum Corp. (a)

100,000

8,484

 

177,543

TOTAL ENERGY

253,160

FINANCIALS - 13.8%

Commercial Banks - 6.6%

Comerica, Inc.

200,000

6,882

Huntington Bancshares, Inc.

2,000,000

10,580

Itau Unibanco Banco Multiplo SA ADR

514,700

11,102

Marshall & Ilsley Corp.

1,200,000

7,860

PNC Financial Services Group, Inc.

1,306,000

66,554

Regions Financial Corp.

4,087,200

26,281

Wells Fargo & Co.

4,278,600

100,761

 

230,020

Consumer Finance - 1.8%

American Express Co.

1,591,400

63,449

Diversified Financial Services - 4.8%

Apollo Global Management LLC (a)(e)

1,703,400

11,924

Citigroup, Inc. (a)

10,000,000

37,200

JPMorgan Chase & Co.

3,250,200

118,177

 

167,301

Common Stocks - continued

Shares

Value (000s)

FINANCIALS - continued

Real Estate Investment Trusts - 0.6%

Public Storage

200,000

$ 19,604

TOTAL FINANCIALS

480,374

HEALTH CARE - 7.6%

Biotechnology - 1.1%

Dendreon Corp. (a)

100,000

3,584

Gilead Sciences, Inc. (a)

400,000

12,744

United Therapeutics Corp. (a)

485,300

22,431

 

38,759

Health Care Equipment & Supplies - 1.6%

Edwards Lifesciences Corp. (a)

275,000

15,832

Intuitive Surgical, Inc. (a)

80,000

21,202

Varian Medical Systems, Inc. (a)

100,000

5,324

Volcano Corp. (a)

600,000

13,260

 

55,618

Health Care Providers & Services - 3.5%

Emergency Medical Services Corp. Class A (a)

200,000

9,610

Express Scripts, Inc. (a)

1,677,800

71,474

HMS Holdings Corp. (a)

271,500

14,167

Medco Health Solutions, Inc. (a)

649,800

28,253

 

123,504

Health Care Technology - 0.4%

SXC Health Solutions Corp. (a)

200,000

15,655

Pharmaceuticals - 1.0%

Biovail Corp. (d)

444,100

10,159

Valeant Pharmaceuticals International (a)

400,000

23,076

 

33,235

TOTAL HEALTH CARE

266,771

INDUSTRIALS - 19.4%

Aerospace & Defense - 2.7%

BE Aerospace, Inc. (a)

500,000

13,475

Goodrich Corp.

394,200

26,995

The Boeing Co.

889,500

54,375

 

94,845

Common Stocks - continued

Shares

Value (000s)

INDUSTRIALS - continued

Air Freight & Logistics - 0.7%

Air Lease Corp. Class A (a)(e)

500,600

$ 10,012

FedEx Corp.

200,000

15,610

 

25,622

Airlines - 7.1%

Continental Airlines, Inc. Class B (a)

3,400,000

75,956

Delta Air Lines, Inc. (a)

10,650,775

111,407

Southwest Airlines Co.

3,966,900

43,834

UAL Corp. (a)

788,500

16,708

 

247,905

Industrial Conglomerates - 2.2%

General Electric Co.

5,188,600

75,131

Machinery - 5.4%

Caterpillar, Inc.

593,000

38,640

Cummins, Inc.

582,200

43,322

Kennametal, Inc.

900,000

22,680

MAN SE

300,000

25,814

PACCAR, Inc.

400,000

16,396

Parker Hannifin Corp.

627,500

37,123

Sandvik AB

300,000

3,554

 

187,529

Road & Rail - 1.3%

CSX Corp.

462,700

23,084

Union Pacific Corp.

281,400

20,525

 

43,609

TOTAL INDUSTRIALS

674,641

INFORMATION TECHNOLOGY - 28.5%

Communications Equipment - 5.6%

Cisco Systems, Inc. (a)

4,499,300

90,211

Juniper Networks, Inc. (a)

1,242,300

33,791

Research In Motion Ltd. (a)

1,175,600

50,386

Riverbed Technology, Inc. (a)

500,000

19,180

 

193,568

Computers & Peripherals - 7.4%

Apple, Inc. (a)

645,700

157,141

EMC Corp. (a)

2,200,000

40,128

Isilon Systems, Inc. (a)

400,000

7,980

Common Stocks - continued

Shares

Value (000s)

INFORMATION TECHNOLOGY - continued

Computers & Peripherals - continued

NetApp, Inc. (a)

1,000,000

$ 40,440

Seagate Technology (a)

1,261,600

12,780

 

258,469

Internet Software & Services - 6.6%

Akamai Technologies, Inc. (a)

600,000

27,642

Baidu.com, Inc. sponsored ADR (a)

331,671

26,013

eBay, Inc. (a)

2,000,400

46,489

Google, Inc. Class A (a)

175,000

78,754

Rackspace Hosting, Inc. (a)

200,000

3,938

Tencent Holdings Ltd.

2,587,500

47,333

 

230,169

IT Services - 1.1%

Cognizant Technology Solutions Corp. Class A (a)

700,000

40,324

Semiconductors & Semiconductor Equipment - 4.1%

Altera Corp.

800,000

19,736

ARM Holdings PLC sponsored ADR

900,000

15,012

Broadcom Corp. Class A

1,145,500

34,331

Marvell Technology Group Ltd. (a)

2,577,400

41,084

NXP Semiconductors NV

872,000

9,657

Xilinx, Inc.

900,000

21,735

 

141,555

Software - 3.7%

Citrix Systems, Inc. (a)

270,600

15,679

Informatica Corp. (a)

1,350,200

43,422

NCsoft Corp.

35,000

6,714

Nintendo Co. Ltd.

20,000

5,565

RealPage, Inc.

146,043

2,449

Rovi Corp. (a)

985,300

42,870

Taleo Corp. Class A (a)

500,000

12,815

 

129,514

TOTAL INFORMATION TECHNOLOGY

993,599

MATERIALS - 4.6%

Chemicals - 4.1%

Dow Chemical Co.

3,392,200

82,668

Ferro Corp. (a)

669,400

7,163

LyondellBasell Industries NV Class A (a)

1,200,000

24,600

Common Stocks - continued

Shares

Value (000s)

MATERIALS - continued

Chemicals - continued

Monsanto Co.

200,000

$ 10,530

Rockwood Holdings, Inc. (a)

778,300

20,119

 

145,080

Metals & Mining - 0.5%

Alcoa, Inc.

1,126,600

11,503

Thyssenkrupp AG

200,000

5,474

 

16,977

TOTAL MATERIALS

162,057

TELECOMMUNICATION SERVICES - 0.6%

Wireless Telecommunication Services - 0.6%

NII Holdings, Inc. (a)

600,000

21,750

TOTAL COMMON STOCKS

(Cost $3,292,647)

3,477,386

Money Market Funds - 1.1%

 

 

 

 

Fidelity Cash Central Fund, 0.24% (b)

2,239,655

2,240

Fidelity Securities Lending Cash Central Fund, 0.27% (b)(c)

34,633,300

34,633

TOTAL MONEY MARKET FUNDS

(Cost $36,873)

36,873

TOTAL INVESTMENT PORTFOLIO - 100.9%

(Cost $3,329,520)

3,514,259

NET OTHER ASSETS (LIABILITIES) - (0.9)%

(31,520)

NET ASSETS - 100%

$ 3,482,739

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 $21,936,000 or 0.6% 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

$ 9

Fidelity Securities Lending Cash Central Fund

415

Total

$ 424

Other Information

The following is a summary of the inputs used, as of August 31, 2010, involving the Fund's assets and liabilities carried at fair 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

$ 573,941

$ 559,355

$ 14,586

$ -

Consumer Staples

51,093

51,093

-

-

Energy

253,160

253,160

-

-

Financials

480,374

468,450

11,924

-

Health Care

266,771

266,771

-

-

Industrials

674,641

664,629

-

10,012

Information Technology

993,599

993,599

-

-

Materials

162,057

162,057

-

-

Telecommunication Services

21,750

21,750

-

-

Money Market Funds

36,873

36,873

-

-

Total Investments in Securities:

$ 3,514,259

$ 3,477,737

$ 26,510

$ 10,012

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

(Amounts in thousands)

 

Investments in Securities:

Beginning Balance

$ -

Total Realized Gain (Loss)

-

Total Unrealized Gain (Loss)

-

Cost of Purchases

10,012

Proceeds of Sales

-

Amortization/Accretion

-

Transfers in to Level 3

-

Transfers out of Level 3

-

Ending Balance

$ 10,012

The change in unrealized gain (loss) for the period attributable to Level 3 securities held at August 31, 2010

$ -

The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges.

Income Tax Information

At August 31, 2010, the cost of investment securities for income tax purposes was $3,352,539,000. Net unrealized appreciation aggregated $161,720,000, of which $418,395,000 related to appreciated investment securities and $256,675,000 related to depreciated investment securities.

Investment Valuation

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

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

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

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

Quarterly Report

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

see the fund's most recent prospectus and annual report.

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

or an affiliate.

Quarterly Report

Item 2. Controls and Procedures

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

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

Item 3. Exhibits

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

SIGNATURES

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

Fidelity Financial Trust

By:

/s/Kenneth B. Robins

 

Kenneth B. Robins

 

President and Treasurer

 

 

Date:

November 1, 2010

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

By:

/s/Kenneth B. Robins

 

Kenneth B. Robins

 

President and Treasurer

 

 

Date:

November 1, 2010

By:

/s/Christine Reynolds

 

Christine Reynolds

 

Chief Financial Officer

 

 

Date:

November 1, 2010