N-CSR 1 main.htm

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

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-3221

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

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

Eric D. Roiter, Secretary

82 Devonshire St.

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

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

Date of fiscal year end:

October 31

Date of reporting period:

October 31, 2007

Item 1. Reports to Stockholders

Fidelity®

Global Balanced

Fund

Annual Report

October 31, 2007

(2_fidelity_logos) (Registered_Trademark)

Contents

Chairman's Message

<Click Here>

Ned Johnson's message to shareholders.

Performance

<Click Here>

How the fund has done over time.

Management's Discussion

<Click Here>

The manager's review of fund performance, strategy and outlook.

Shareholder Expense Example

<Click Here>

An example of shareholder expenses.

Investment Changes

<Click Here>

A summary of major shifts in the fund's investments over the past six months.

Investments

<Click Here>

A complete list of the fund's investments with their market values.

Financial Statements

<Click Here>

Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights.

Notes

<Click Here>

Notes to the financial statements.

Report of Independent Registered Public Accounting Firm

<Click Here>

Trustees and Officers

<Click Here>

Board Approval of Investment Advisory Contracts and Management Fees

<Click Here>

Proxy Voting Results

<Click Here>

Distributions

<Click Here>

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.

Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.

Other third party marks appearing herein are the property of their respective owners.

All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.

Annual Report

This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.

A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Annual Report

Chairman's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

Many stock and bond markets around the world have been unsettled of late; however, volatility can often lead to opportunity for patient investors. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.

One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.

You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).

A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.

We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.

Sincerely,

/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Annual Report

Performance: The Bottom Line

Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.

Average Annual Total Returns

Periods ended October 31, 2007

Past 1
year

Past 5
years

Past 10
years

Fidelity® Global Balanced Fund

21.83%

16.78%

9.83%

$10,000 Over 10 Years

Let's say hypothetically that $10,000 was invested in Fidelity® Global Balanced Fund on October 31, 1997. The chart shows how the value of your investment would have changed, and also shows how the Morgan Stanley Capital International SM (MSCI®) World Index performed over the same period.



Annual Report

Management's Discussion of Fund Performance

Comments from Derek Young, Portfolio Manager of Fidelity® Global Balanced Fund

Foreign stocks, with a large assist from a weak U.S. dollar, generally had higher returns for U.S. investors than domestic equities during the 12-month period ending October 31, 2007. Developed-market bonds also performed strongly. The backdrop for global stocks was solid, with robust economic growth and relatively high corporate profitability worldwide. Developed-country equity markets, as measured by the Morgan Stanley Capital InternationalSM (MSCI®) World Index - rose 20.79%, while the Citigroup® World Government Bond Index - which gauges the performance of developed country government bonds - gained 9.42%. Among countries in the MSCI benchmark, Hong Kong, Singapore and Australia had the best showings, while the United States and Japan, two of the largest components of the index, underperformed. Emerging markets were the period's big winners, with stocks advancing 68.33% as measured by the MSCI Emerging Markets index.

Global Balanced rose 21.83% for the yearlong period, putting it well ahead of the 16.25% return of the Fidelity Global Balanced Composite Index, a 60%/40% blend of the MSCI World index and the Citigroup World Government Bond Index. Strong security selection within the fund's individual subportfolios made the biggest contribution to our sizable outperformance. A slight tilt in asset allocation toward equities and away from fixed-income instruments also helped, as did our decision to overweight stocks in the Pacific Basin ex Japan and European regions. Among the top equity picks in our regional subportfolios were Japanese video game maker Nintendo; U.S. consumer electronics giant Apple; and the companies that own the Hong Kong, Singapore and Australian stock exchanges.. Detractors included Japanese bank Mizuho Financial and U.S. retailer JCPenney, the latter of which was sold from the portfolio. An underweighting in investment-grade bonds helped, but was offset a bit by some unproductive security selection and a modest stake in cash.

The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.

Annual Report

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (May 1, 2007 to October 31, 2007).

Actual Expenses

The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Annual Report

Beginning
Account Value
May 1, 2007

Ending
Account Value
October 31, 2007

Expenses Paid
During Period*
May 1, 2007
to October 31, 2007

Actual

$ 1,000.00

$ 1,111.10

$ 5.96

Hypothetical (5% return per year before expenses)

$ 1,000.00

$ 1,019.56

$ 5.70

* Expenses are equal to the Fund's annualized expense ratio of 1.12%; multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

Annual Report

Global Balanced

Investment Changes

Geographic Diversification (% of fund's net assets)

As of October 31, 2007

United States of America 31.2%

Japan 15.8%

Germany 9.8%

France 8.0%

United Kingdom 6.3%

Australia 4.8%

Canada 3.6%

Switzerland 3.3%

Hong Kong 1.8%

Other 15.4%

Percentages are adjusted for the effect of futures contracts, if applicable.

As of April 30, 2007

United States of America 34.6%

Japan 17.5%

Germany 9.0%

France 6.4%

United Kingdom 5.7%

Switzerland 3.9%

Australia 3.4%

Netherlands 3.4%

Finland 3.0%

Other 13.1%

Percentages are adjusted for the effect of futures contracts, if applicable.

Asset Allocation

% of fund's
net assets

% of fund's net assets
6 months ago

Stocks

62.0

58.8

Bonds

33.1

36.6

Convertible Securities

0.1

0.0

Short-Term Investments and Net Other Assets

4.8

4.6

Top Five Stocks as of October 31, 2007

% of fund's
net assets

% of fund's net assets
6 months ago

Exxon Mobil Corp. (United States of America)

1.6

0.8

AT&T, Inc. (United States of America)

1.2

0.8

ABB Ltd. (Switzerland)

1.1

1.1

Merck & Co., Inc. (United States of America)

1.0

0.7

CSL Ltd. (Australia)

0.9

0.3

5.8

Top Five Bond Issuers as of October 31, 2007

(with maturities greater than one year)

% of fund's
net assets

% of fund's net assets
6 months ago

Japan Government

7.9

8.2

German Federal Republic

5.3

6.0

French Republic

2.2

1.5

U.S. Treasury Obligations

2.2

2.0

UK Treasury GILT

0.9

1.3

18.5

Market Sectors as of October 31, 2007

% of fund's
net assets

% of fund's net assets
6 months ago

Financials

20.6

18.7

Industrials

10.7

6.9

Information Technology

9.4

7.3

Energy

7.2

4.6

Materials

5.9

5.0

Health Care

5.2

6.6

Consumer Discretionary

4.3

9.2

Telecommunication Services

3.6

1.9

Consumer Staples

3.4

5.9

Utilities

2.2

2.1

Annual Report

Global Balanced

Showing Percentage of Net Assets

Investments October 31, 2007

Common Stocks - 61.9%

Shares

Value

Argentina - 0.1%

Cresud S.A.C.I.F. y A. sponsored ADR

14,600

$ 360,328

Australia - 4.8%

ASX Ltd.

24,177

1,303,690

Babcock & Brown Ltd.

24,300

703,618

BHP Billiton Ltd.

34,034

1,484,903

BHP Billiton Ltd. sponsored ADR

13,000

1,134,380

Computershare Ltd.

134,355

1,083,311

CSL Ltd.

96,642

3,285,451

Macquarie Bank Ltd.

12,500

998,323

National Australia Bank Ltd.

27,327

1,105,591

Newcrest Mining Ltd.

22,000

670,635

QBE Insurance Group Ltd.

33,400

1,022,126

Sunland Group Ltd.

293,396

1,256,455

United Group Ltd.

59,318

1,187,238

Woolworths Ltd.

38,600

1,209,788

WorleyParsons Ltd.

30,303

1,369,789

Wotif.com Holdings Ltd.

6,218

34,987

TOTAL AUSTRALIA

17,850,285

Austria - 0.1%

voestalpine AG

5,800

521,577

Belgium - 0.4%

Fortis

21,200

677,563

InBev SA

7,000

660,827

TOTAL BELGIUM

1,338,390

Bermuda - 0.4%

Aquarius Platinum Ltd. (United Kingdom)

7,000

268,218

MF Global Ltd.

25,000

739,000

SeaDrill Ltd. (a)

23,800

566,561

TOTAL BERMUDA

1,573,779

Brazil - 0.2%

Bovespa Holding SA (a)

17,000

323,767

Brasil Telecom SA sponsored ADR

14,000

414,260

TOTAL BRAZIL

738,027

Canada - 2.9%

Aber Diamond Corp.

800

35,196

Aeroplan Income Fund

1,300

30,841

Alimentation Couche-Tard, Inc. Class B (sub. vtg.)

2,300

50,010

AltaGas Income Trust

1,300

36,899

Common Stocks - continued

Shares

Value

Canada - continued

Astral Media, Inc. Class A (non-vtg.)

400

$ 19,081

Bank of Montreal

4,200

280,237

Barrick Gold Corp.

2,100

93,412

BCE, Inc.

1,200

52,425

Bombardier, Inc. Class B (sub. vtg.) (a)

30,000

177,928

Brookfield Asset Management, Inc. Class A

3,400

138,960

Brookfield Properties Corp.

2,300

57,431

CAE, Inc.

6,200

83,656

Cameco Corp.

1,900

93,672

Canadian Imperial Bank of Commerce

800

86,422

Canadian National Railway Co.

2,400

134,692

Canadian Natural Resources Ltd.

3,900

324,491

Canadian Oil Sands Trust

3,100

113,927

Canadian Pacific Railway Ltd.

300

21,123

Canadian Tire Corp. Ltd. Class A (non-vtg.)

500

46,018

CGI Group, Inc. Class A (sub. vtg.) (a)

3,700

42,165

CI Financial Income Fund

1,800

54,198

Cognos, Inc. (a)

700

35,231

Corus Entertainment, Inc. Class B (non-vtg.)

1,000

52,690

Duvernay Oil Corp. (a)

700

25,288

Eldorado Gold Corp. (a)

600

4,188

Emergis, Inc. (a)

1,300

10,312

EnCana Corp.

4,200

294,027

Finning International, Inc.

3,600

123,914

First Quantum Minerals Ltd.

100

10,770

Flint Energy Services Ltd. (a)

500

12,884

Fording Canadian Coal Trust

700

25,666

Galleon Energy, Inc. Class A (a)

1,300

19,813

Garda World Security Corp. (a)

1,800

34,715

Gildan Activewear, Inc. (a)

4,200

192,385

Goldcorp, Inc.

5,300

186,527

Great Canadian Gaming Corp. (a)

2,100

31,137

Husky Energy, Inc.

2,600

121,243

ING Canada, Inc.

1,100

52,425

Keyera Facilities Income Fund

1,900

33,686

Kinross Gold Corp. (a)

7,100

140,466

MacDonald Dettwiler & Associates Ltd. (a)

1,100

52,425

Manulife Financial Corp.

8,800

411,853

Mecachrome International, Inc. (a)(g)

600

8,070

Metro, Inc. Class A (sub. vtg.)

1,400

52,682

Miranda Technologies, Inc. (a)

1,300

14,044

National Bank of Canada

1,500

86,820

Common Stocks - continued

Shares

Value

Canada - continued

Nexen, Inc.

2,300

$ 77,925

Niko Resources Ltd.

900

100,847

Nortel Networks Corp. (a)

1,000

16,141

Noveko International, Inc. (a)

2,000

14,594

Onex Corp. (sub. vtg.)

800

33,671

Open Text Corp. (a)

1,300

40,630

Petro-Canada

2,300

132,758

Potash Corp. of Saskatchewan, Inc.

9,400

1,154,508

Power Corp. of Canada (sub. vtg.)

2,200

94,412

Quebecor, Inc. Class B (sub. vtg.)

1,800

78,161

Research In Motion Ltd. (a)

14,600

1,817,846

Rogers Communications, Inc. Class B (non-vtg.)

6,100

311,008

Royal Bank of Canada

6,300

373,917

Saskatchewan Wheat Pool, Inc. (a)

4,000

54,099

Savanna Energy Services Corp.

300

5,074

Shoppers Drug Mart Corp.

2,300

134,902

Shore Gold, Inc. (a)

5,600

26,986

SNC-Lavalin Group, Inc.

6,500

336,772

Sun Life Financial, Inc.

1,800

104,641

Suncor Energy, Inc.

3,900

427,298

Talisman Energy, Inc.

6,000

130,777

Teck Cominco Ltd. Class B (sub. vtg.)

1,100

55,117

TELUS Corp. (non-vtg.)

3,200

186,367

Toronto-Dominion Bank

4,700

355,163

TransCanada Corp.

6,900

293,626

TransForce Income Fund

1,600

17,911

TSX Group, Inc.

700

37,765

Tundra Semiconductor Corp. Ltd. (a)

600

3,260

Uranium One, Inc. (a)

2,900

32,219

Yamana Gold, Inc.

5,100

76,916

Yellow Pages Income Fund

6,000

90,871

TOTAL CANADA

10,622,227

Cayman Islands - 0.0%

Alibaba.com Ltd. (a)

30,000

96,770

CNinsure, Inc. ADR (a)

1,600

40,464

TOTAL CAYMAN ISLANDS

137,234

Cyprus - 0.2%

Bank of Cyprus Public Co. Ltd.

42,100

817,326

Common Stocks - continued

Shares

Value

Finland - 0.8%

Metso Corp.

9,700

$ 589,679

Nokia Corp. sponsored ADR

64,100

2,546,052

TOTAL FINLAND

3,135,731

France - 3.5%

Accor SA

3,000

286,297

Alcatel-Lucent SA sponsored ADR

39,700

384,693

Alstom SA

8,700

2,053,283

AXA SA

26,100

1,167,453

Bouygues SA

6,400

614,384

Cap Gemini SA

7,800

497,228

Eutelsat Communications

15,100

408,004

Gameloft (a)

45,000

463,544

Groupe Danone

8,500

733,125

LVMH Moet Hennessy - Louis Vuitton

4,700

605,216

Pinault Printemps-Redoute SA

3,000

594,674

Remy Cointreau SA

5,400

415,038

Renault SA

3,300

554,123

Societe Generale Series A

6,000

1,011,000

Suez SA (France)

11,900

773,500

Total SA sponsored ADR

10,800

870,588

Veolia Environnement

8,312

742,416

Vinci SA

8,500

697,264

TOTAL FRANCE

12,871,830

Germany - 4.2%

Adidas-Salomon AG

8,900

593,783

Allianz AG (Reg.)

4,600

1,039,600

Arcandor AG (a)

6,400

205,846

Bayer AG

11,100

914,640

Continental AG

3,700

559,589

DaimlerChrysler AG

15,900

1,751,385

Deutsche Boerse AG

4,700

741,539

E.ON AG

8,200

1,601,460

Hochtief AG

4,900

676,617

Lanxess AG

10,500

524,371

Linde AG

4,400

556,768

MAN AG

5,700

1,017,405

Muenchener Rueckversicherungs-Gesellschaft AG (Reg.)

4,700

901,695

Q-Cells AG (a)

2,000

254,699

RWE AG

7,300

996,705

Common Stocks - continued

Shares

Value

Germany - continued

Siemens AG:

(Reg.)

9,500

$ 1,295,515

sponsored ADR

4,900

668,213

SolarWorld AG

9,200

624,062

Wacker Chemie AG

2,500

613,929

TOTAL GERMANY

15,537,821

Greece - 0.4%

Bank of Piraeus

23,412

938,886

Cosmote Mobile Telecommunications SA

17,400

600,481

TOTAL GREECE

1,539,367

Hong Kong - 1.6%

Hang Seng Bank Ltd.

64,700

1,321,801

Hong Kong Exchanges & Clearing Ltd.

39,000

1,301,900

Li & Fung Ltd.

254,000

1,205,304

Sino Land Co.

60,000

188,077

Sun Hung Kai Properties Ltd.

68,000

1,299,528

Swire Pacific Ltd. (A Shares)

34,000

485,577

TOTAL HONG KONG

5,802,187

India - 0.0%

Bharti Airtel Ltd. (a)

8,400

217,016

Ireland - 0.2%

Anglo Irish Bank Corp. PLC

22,100

371,414

CRH PLC

11,000

419,775

TOTAL IRELAND

791,189

Italy - 0.6%

IFIL Finanziaria di Partecipazioni SpA

7,036

80,215

Intesa Sanpaolo SpA

123,000

972,451

Prysmian SpA

10,600

304,550

Unicredito Italiano SpA

100,900

862,485

TOTAL ITALY

2,219,701

Japan - 6.5%

ABC-Mart, Inc.

7,900

162,705

Aruze Corp.

3,000

129,903

Asahi Glass Co. Ltd.

47,000

647,412

Atlus Co. Ltd.

22,600

116,849

Canon, Inc.

7,000

353,990

Capcom Co. Ltd.

9,700

277,471

Daihen Corp. (a)

17,000

119,070

Common Stocks - continued

Shares

Value

Japan - continued

Daiichi Sankyo Co. Ltd.

10,300

$ 292,975

Eagle Industry Co. Ltd. (f)

17,000

266,044

East Japan Railway Co.

97

799,198

Fuji Machine Manufacturing Co. Ltd.

9,600

214,310

Fujitsu Ltd.

54,000

424,086

Hitachi Metals Ltd.

9,000

116,778

Honda Motor Co. Ltd.

8,100

303,183

Hoya Corp.

7,600

276,805

Ibiden Co. Ltd.

5,400

457,831

Kao Corp.

8,000

229,486

Komatsu Ltd.

13,100

439,294

Konica Minolta Holdings, Inc.

17,500

306,414

Kuraray Co. Ltd.

20,500

267,745

Kyocera Corp.

2,400

205,152

Lawson, Inc.

8,000

276,641

Maeda Road Construction Co. Ltd. (f)

20,000

166,194

Marui Group Co. Ltd.

12,400

128,658

Miraca Holdings, Inc.

11,300

266,830

Mitsubishi Corp.

19,900

619,728

Mitsubishi Electric Corp.

73,000

890,201

Mitsui & Co. Ltd.

29,000

752,367

Mitsui Engineering & Shipbuilding Co.

27,000

159,019

Mitsui O.S.K. Lines Ltd.

59,000

975,336

Mizuho Financial Group, Inc.

162

910,710

Morinaga Milk Industry Co. Ltd.

56,000

181,653

Namco Bandai Holdings, Inc.

8,100

124,910

Nichicon Corp.

12,300

146,784

Nikon Corp.

12,000

385,185

Nintendo Co. Ltd.

4,000

2,512,000

Nippon Oil Corp.

31,000

274,617

Nomura Holdings, Inc.

20,900

372,647

Okinawa Cellular Telephone Co.

65

190,420

Osaka Gas Co. Ltd.

107,000

416,375

Osaka Securities Exchange Co. Ltd.

51

273,496

Sankei Building Co. Ltd. (f)

46,400

488,575

Sho-Bond Corp.

13,600

150,850

Softbank Corp.

13,400

313,023

Sumitomo Electric Industries Ltd.

10,900

176,512

Sumitomo Metal Industries Ltd.

124,000

613,885

Sumitomo Mitsui Financial Group, Inc.

78

639,062

T&D Holdings, Inc.

9,600

577,912

Takeda Pharmaceutical Co. Ltd.

11,600

724,745

Common Stocks - continued

Shares

Value

Japan - continued

Tamron Co. Ltd.

8,800

$ 341,854

The Sumitomo Warehouse Co. Ltd.

20,000

115,265

Tohokushinsha Film Corp.

13,500

130,639

Tokai Carbon Co. Ltd.

50,000

627,169

Tokyo Tomin Bank Ltd.

4,600

153,140

Toyo Engineering Corp.

30,000

184,916

Toyoda Gosei Co. Ltd.

9,100

326,938

Toyota Motor Corp.

23,900

1,367,558

Ube Industries Ltd.

68,000

244,222

Uni-Charm Corp.

5,100

304,298

Yamaha Motor Co. Ltd.

5,200

148,521

TOTAL JAPAN

24,059,556

Luxembourg - 0.6%

Acergy SA

16,200

468,828

ArcelorMittal SA

13,300

1,067,505

ArcelorMittal SA (NY Shares) Class A

9,000

719,550

TOTAL LUXEMBOURG

2,255,883

Mexico - 0.3%

America Movil SAB de CV Series L sponsored ADR

15,000

980,850

Netherlands - 0.4%

Koninklijke Ahold NV

29,060

437,353

Nutreco Holding NV

7,083

483,846

SBM Offshore NV

11,300

434,825

TOTAL NETHERLANDS

1,356,024

Netherlands Antilles - 0.2%

Schlumberger Ltd. (NY Shares)

8,700

840,159

Norway - 0.5%

Marine Harvest ASA (a)

520,000

527,122

Petroleum Geo-Services ASA

21,100

621,224

Renewable Energy Corp. AS (a)

4,600

234,436

Telenor ASA

16,200

380,160

TOTAL NORWAY

1,762,942

Philippines - 0.0%

Vista Land & Lifescapes, Inc.

295,000

37,363

Singapore - 1.4%

DBS Group Holdings Ltd.

71,000

1,111,277

Keppel Corp. Ltd.

114,000

1,171,821

Parkway Holdings Ltd.

156,000

452,453

Common Stocks - continued

Shares

Value

Singapore - continued

Raffles Education Corp. Ltd.

124,000

$ 284,954

Rickmers Maritime

835,000

873,275

Singapore Exchange Ltd.

107,000

1,172,463

TOTAL SINGAPORE

5,066,243

Spain - 0.9%

Banco Santander Central Hispano SA

37,800

821,470

Compania de Distribucion Integral Logista SA

4,500

351,080

Inditex SA

9,100

677,003

Telefonica SA sponsored ADR

15,600

1,551,420

TOTAL SPAIN

3,400,973

Sweden - 0.5%

Atlas Copco AB (A Shares)

31,000

518,395

H&M Hennes & Mauritz AB (B Shares)

10,950

728,995

Investor AB (B Shares)

16,300

402,770

SSAB Svenskt Stal AB (B Shares)

10,850

319,331

TOTAL SWEDEN

1,969,491

Switzerland - 3.3%

ABB Ltd.:

(Reg.)

39,488

1,187,742

sponsored ADR

93,900

2,837,658

Actelion Ltd. (Reg.) (a)

11,765

584,543

Credit Suisse Group (Reg.)

6,583

445,669

Julius Baer Holding AG (Bearer)

7,006

606,062

Lindt & Spruengli AG

20

761,461

Nestle SA (Reg.)

3,408

1,574,496

Pargesa Holding SA

3,569

406,416

Roche Holding AG (participation certificate)

10,832

1,851,189

Sonova Holding AG

7,396

830,079

Swiss Life Holding

2,640

729,345

UBS AG (Reg.)

7,949

426,782

TOTAL SWITZERLAND

12,241,442

United Kingdom - 4.0%

3i Group plc

19,575

441,567

Barclays PLC

16,700

212,299

BG Group PLC

58,500

1,079,326

BP PLC

60,900

791,599

Burberry Group PLC

32,700

418,107

GlaxoSmithKline PLC

21,300

545,813

Gyrus Group PLC (a)

53,800

478,171

Common Stocks - continued

Shares

Value

United Kingdom - continued

HSBC Holdings PLC sponsored ADR

12,900

$ 1,283,808

Man Group plc

46,200

564,786

Next PLC

12,900

592,180

Reckitt Benckiser Group PLC

16,900

979,942

Royal Bank of Scotland Group PLC

36,800

395,169

Royal Dutch Shell PLC Class A (United Kingdom)

59,300

2,595,205

Scottish & Southern Energy PLC

22,500

727,875

Standard Chartered PLC (United Kingdom)

25,100

973,756

Vodafone Group PLC

179,500

704,897

Vodafone Group PLC sponsored ADR

32,700

1,284,129

Xstrata PLC

11,300

809,813

TOTAL UNITED KINGDOM

14,878,442

United States of America - 22.9%

Adobe Systems, Inc. (a)

21,500

1,029,850

AES Corp. (a)

39,800

852,118

AFLAC, Inc.

10,000

627,800

Akamai Technologies, Inc. (a)

16,000

627,040

Albemarle Corp.

21,000

1,002,960

Allergan, Inc.

9,200

621,736

American Superconductor Corp. (a)(f)

39,700

1,077,855

American Tower Corp. Class A (a)

600

26,508

Amphenol Corp. Class A

19,000

841,130

Amylin Pharmaceuticals, Inc. (a)

17,900

805,858

Apple, Inc. (a)

12,400

2,355,380

AT&T, Inc.

106,700

4,458,993

athenahealth, Inc.

1,500

57,345

Broadcom Corp. Class A (a)

500

16,275

Bucyrus International, Inc. Class A

200

16,500

Cabot Oil & Gas Corp.

7,400

293,706

Calgon Carbon Corp. (a)

33,400

497,660

Celgene Corp. (a)

9,500

627,000

Cisco Systems, Inc. (a)

67,950

2,246,427

Cognizant Technology Solutions Corp. Class A (a)

19,400

804,324

Constellation Energy Group, Inc.

5,200

492,440

CSX Corp.

20,000

895,400

CyberSource Corp. (a)

43,300

707,955

DealerTrack Holdings, Inc. (a)

13,400

657,806

Eaton Corp.

22,000

2,036,760

EMC Corp. (a)

37,000

939,430

Exelixis, Inc. (a)

20,900

229,900

Exxon Mobil Corp.

64,900

5,970,151

Common Stocks - continued

Shares

Value

United States of America - continued

Fannie Mae

45,800

$ 2,612,432

FMC Corp.

10,000

575,000

Freeport-McMoRan Copper & Gold, Inc. Class B

11,000

1,294,480

Fuel Tech, Inc. (a)(f)

50,775

1,501,417

General Growth Properties, Inc.

19,140

1,040,450

Gilead Sciences, Inc. (a)

21,200

979,228

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

4,280

3,025,960

Hewlett-Packard Co.

59,000

3,049,120

Infinera Corp.

13,200

291,324

Intel Corp.

45,000

1,210,500

Inverness Medical Innovations, Inc. (a)

20,400

1,225,836

J.B. Hunt Transport Services, Inc.

24,200

670,824

Lehman Brothers Holdings, Inc.

36,700

2,324,578

Mastercard, Inc. Class A

2,570

487,144

Merck & Co., Inc.

63,100

3,676,206

Microsoft Corp.

43,000

1,582,830

Molson Coors Brewing Co. Class B

7,400

423,502

Monsanto Co.

15,050

1,469,332

NRG Energy, Inc. (a)

200

9,132

Oracle Corp. (a)

45,000

997,650

PACCAR, Inc.

24,000

1,333,440

Petrohawk Energy Corp. (a)

30,100

556,850

Phorm, Inc. (a)

5,000

213,363

PPL Corp.

19,800

1,023,660

Precision Castparts Corp.

7,000

1,048,670

Principal Financial Group, Inc.

4,000

270,680

Quanta Services, Inc. (a)

20,600

679,800

Quicksilver Resources, Inc. (a)

10,350

589,950

Raytheon Co.

13,000

826,930

Raytheon Co. warrants 6/16/11 (a)

112

3,080

Schering-Plough Corp.

20,000

610,400

Service Corp. International

78,800

1,140,236

State Street Corp.

39,100

3,119,007

T. Rowe Price Group, Inc.

30,000

1,927,200

The Coca-Cola Co.

32,000

1,976,320

Tim Hortons, Inc.

900

34,110

Titanium Metals Corp. (a)

46,300

1,629,760

Union Pacific Corp.

22,000

2,816,880

US Gold Corp. (a)

2,100

9,807

Valero Energy Corp.

500

35,215

Visual Sciences, Inc. (a)

60,000

1,092,000

VMware, Inc. Class A (f)

9,400

1,173,402

Common Stocks - continued

Shares

Value

United States of America - continued

Washington Group International, Inc. (a)

6,100

$ 593,835

Weatherford International Ltd. (a)

15,000

973,650

Williams Companies, Inc.

57,200

2,087,228

TOTAL UNITED STATES OF AMERICA

85,028,725

TOTAL COMMON STOCKS

(Cost $191,214,287)

229,952,108

Nonconvertible Preferred Stocks - 0.1%

Italy - 0.1%

Istituto Finanziario Industriale SpA (IFI) (a)
(Cost $141,452)

6,600

274,814

Corporate Bonds - 10.5%

Principal Amount (d)

Convertible Bonds - 0.1%

United Kingdom - 0.1%

Shire PLC 2.75% 5/9/14

$ 300,000

315,150

Nonconvertible Bonds - 10.4%

Australia - 0.0%

QBE Capital Funding II LP 6.797% (g)(i)

130,000

127,140

Bermuda - 0.2%

Northern Offshore Ltd. 10.2031% 6/14/10 (g)(i)

100,000

100,000

Sea Production Ltd. 9.825% 2/14/12 (g)(i)

100,000

97,500

SeaDrill Ltd.:

6.46% 1/23/08 (g)(i)

NOK

1,500,000

279,512

6.96% 1/23/09 (g)(i)

NOK

1,500,000

278,813

TOTAL BERMUDA

755,825

British Virgin Islands - 0.0%

CEMEX SAB de CV 6.196% (i)

100,000

100,000

Cayman Islands - 0.2%

Finans Capital Finance Ltd. (Reg. S) 9% 10/7/14 (e)

160,000

164,026

MUFG Capital Finance 5 Ltd. 6.299% (i)

GBP

100,000

194,986

PetroProd Ltd. 11.2475% 1/12/12 (g)(i)

100,000

99,000

SMFG Finance Ltd. 6.164% (i)

GBP

75,000

143,701

Vale Overseas Ltd. 6.875% 11/21/36

325,000

337,851

TOTAL CAYMAN ISLANDS

939,564

Corporate Bonds - continued

Principal Amount (d)

Value

Nonconvertible Bonds - continued

Cyprus - 0.1%

Colgrade Ltd. 8.25% 6/28/10

$ 180,000

$ 174,240

Mizuho Capital Investment Europe 1 Ltd. 5.02% (i)

EUR

100,000

138,201

TOTAL CYPRUS

312,441

France - 2.3%

CMA CGM SA (Reg. S) 5.5% 5/16/12

EUR

195,000

267,738

Compagnie de Financement Foncier 4.625% 9/23/17

EUR

1,700,000

2,464,167

Compagnie de St. Gobain 5.004% 4/11/12 (i)

EUR

175,000

249,762

Credit Agricole SA:

4.695% 1/19/10 (i)

EUR

800,000

1,154,972

4.746% 9/30/08 (i)

EUR

1,500,000

2,170,809

Dexia Municipal Agency 4.5% 11/13/17

EUR

1,450,000

2,073,870

France Telecom SA 4.375% 2/21/12

EUR

100,000

141,781

Natixis SA 4.876% 1/26/17 (i)

EUR

100,000

141,244

TOTAL FRANCE

8,664,343

Germany - 0.3%

Bayer AG:

4.867% 4/10/10 (i)

EUR

200,000

288,818

5.625% 5/23/18

GBP

150,000

298,657

BayernLB Capital Trust I 6.2032% 3/29/49 (i)

250,000

224,440

Muenchener Rueckversicherungs-Gesellschaft AG 5.767% (i)

EUR

250,000

349,269

Wuerttembergische Lebens AG 5.375% 6/1/26 (i)

EUR

100,000

138,839

TOTAL GERMANY

1,300,023

Hong Kong - 0.2%

Chong Hing Bank Ltd. 6.6244% 12/16/16 (i)

175,000

178,143

Dah Sing Bank Ltd. 6.3713% 6/3/16 (i)

250,000

251,275

Wing Hang Bank Ltd. 6% (i)

260,000

252,969

TOTAL HONG KONG

682,387

India - 0.1%

Export-Import Bank of India 1.465% 6/7/12 (i)

JPY

40,000,000

345,275

ICICI Bank Ltd. (Reg. S) 5.7875% 1/12/10 (i)

125,000

123,759

TOTAL INDIA

469,034

Ireland - 0.4%

Ardagh Glass Group plc 10.75% 3/1/15 pay-in-kind

EUR

94,837

132,247

Bank of Ireland UK Holdings PLC 7.4% (i)

EUR

200,000

304,799

Corporate Bonds - continued

Principal Amount (d)

Value

Nonconvertible Bonds - continued

Ireland - continued

JSC Vneshtorgbank 7% 4/13/09 (Issued by Dali Capital PLC for JSC Vneshtorgbank)

RUB

7,000,000

$ 283,211

ROSBANK (OJSC JSCB) 8% 9/30/09 (Issued by Dali Capital PLC for ROSBANK (OJSC JSCB))

RUB

3,800,000

152,973

Saphir Finance PLC 6.8509% (i)

GBP

50,000

69,648

TransCapitalInvest Ltd. (Reg. S) 5.67% 3/5/14

$ 400,000

382,800

VTB24 Capital PLC 6.54% 12/7/09 (i)

270,000

265,302

TOTAL IRELAND

1,590,980

Italy - 0.3%

Banca Italease SpA 4.46% 2/2/10 (i)

EUR

400,000

556,438

IFIL Finanziaria di Partecipazioni SpA 5.375% 6/12/17

EUR

150,000

210,288

Intesa Sanpaolo SpA 6.375% 11/12/17 (i)

GBP

150,000

310,152

TOTAL ITALY

1,076,878

Kazakhstan - 0.2%

Alliance Bank JSC 9% 6/27/08

360,000

351,900

ATF Bank JSC 8.875% 11/9/09

200,000

202,100

Bank Caspian JSC 7.875% 10/17/08

100,000

96,350

TOTAL KAZAKHSTAN

650,350

Korea (South) - 0.2%

GS Caltex Corp. (Reg. S) 5.5% 4/24/17

300,000

287,289

Hyundai Capital Services, Inc. 5.625% 1/24/12

200,000

197,500

Woori Bank (Reg. S) 6.208% 5/2/67 (i)

300,000

283,407

TOTAL KOREA (SOUTH)

768,196

Luxembourg - 0.8%

Fiat Finance & Trade Ltd. 5.625% 11/15/11

EUR

100,000

146,908

Gaz Capital SA (Luxembourg) 6.58% 10/31/13

GBP

100,000

200,131

Glencore Finance (Europe) SA:

6.5% 2/27/19

GBP

200,000

403,556

8%

450,000

454,320

ICB OJSC 6.2% 9/29/15 (Issued by Or-ICB for ICB OJSC) (i)

500,000

490,495

Lux-Development SA 6.1% 10/31/16 (e)

EUR

200,000

290,035

RBD Capital SA 6.5% 8/11/08

400,000

398,280

Russian Standard Finance SA 6.825% 9/16/09

EUR

150,000

204,050

TNK-BP Finance SA 7.5% 7/18/16

250,000

240,798

TOTAL LUXEMBOURG

2,828,573

Corporate Bonds - continued

Principal Amount (d)

Value

Nonconvertible Bonds - continued

Malaysia - 0.1%

IOI Ventures (L) Bhd 5.25% 3/16/15

$ 300,000

$ 295,350

Multi-National - 0.1%

WT Finance (Aust) Pty Ltd./Westfield Europe Finance PLC/WEA Finance 3.625% 6/27/12

EUR

200,000

271,302

Netherlands - 0.8%

ALB Finance BV 8.75% 4/20/11

100,000

88,250

ASML Holding NV 5.75% 6/13/17

EUR

250,000

339,367

Asset Repackaging Trust Five BV 12.155% 12/21/11 pay-in-kind (i)

EUR

106,713

155,379

BOATS Investments (Netherlands) BV 11% 3/31/17 pay-in-kind

EUR

274,220

395,513

CenterCredit International BV (Reg. S) 8.625% 1/30/14

100,000

87,252

Deutsche Telekom International Finance BV 4.5% 10/25/13

EUR

115,000

161,930

EDP Finance BV 5.375% 11/2/12

200,000

199,900

Eureko BV 5.125% (i)

EUR

200,000

276,889

Intergas Finance BV (Reg. S) 6.375% 5/14/17

300,000

279,750

Media Nusantara Citra BV 10.75% 9/12/11

148,958

158,194

SABIC Europe BV 4.5% 11/28/13

EUR

200,000

278,361

Siemens Financieringsmaatschap NV 6.125% 9/14/66 (i)

GBP

150,000

303,584

TuranAlem Finance BV 6.25% 9/27/11

EUR

250,000

321,300

TOTAL NETHERLANDS

3,045,669

Norway - 0.9%

Africa Offshore Services AS 10.93% 6/29/12 (i)

100,000

98,500

Aker Floating Production ASA 8.14% 7/3/08 (i)

100,000

100,000

DDI Holding AS:

9.3% 1/19/12 (j)

100,000

103,750

10.2594% 3/15/12 (g)(i)

100,000

102,500

Kommunalbanken AS 5.125% 5/30/12

1,900,000

1,934,200

MPF Corp. (Norway) AS 12.3375% 9/20/11 (g)(i)

200,000

192,000

OffRig Drilling ASA 9.75% 4/27/11 (g)

100,000

100,000

Petromena AS 10.85% 11/19/10 (g)

100,000

101,000

ProdJack AS:

11.25% 2/22/13 (g)

100,000

98,000

11.25% 3/8/13 (g)

100,000

97,500

Corporate Bonds - continued

Principal Amount (d)

Value

Nonconvertible Bonds - continued

Norway - continued

Sevan Marine ASA 9.25% 12/20/11 (g)

$ 100,000

$ 101,500

Sinvest ASA 10.95% 12/22/09 (g)(i)

NOK

1,500,000

289,703

TOTAL NORWAY

3,318,653

Russia - 0.1%

Bank St. Petersburg 9.501% 11/25/09 (Issued by BSPB Finance PLC for Bank St. Petersburg)

250,000

244,250

Tyumen Oil Co. 11% 11/6/07

175,000

174,563

TOTAL RUSSIA

418,813

Spain - 0.2%

Bancaja Emisiones SA 4.625% (i)

EUR

275,000

327,756

Santander Finance Preferred SA Unipersonal 7.005% (i)

GBP

100,000

203,310

Telefonica Emisiones SAU 5.888% 1/31/14

GBP

100,000

204,200

TOTAL SPAIN

735,266

United Kingdom - 0.9%

Alliance & Leicester PLC 4.25% 12/30/08

GBP

170,000

344,489

Amlin PLC 6.5% 12/19/26 (i)

GBP

125,000

245,245

Getin Finance PLC 6.309% 5/13/09 (i)

EUR

100,000

140,939

ICICI Bank UK PLC 6.125% 2/27/12 (i)

125,000

120,873

Novae Group plc 8.375% 4/27/17 (i)

GBP

50,000

104,607

Old Mutual plc 4.5% 1/18/17 (i)

EUR

150,000

209,496

Rexam PLC 4.375% 3/15/13 (g)

EUR

250,000

349,273

Royal Bank of Scotland Group PLC 5.3806% 10/1/08 (i)

1,500,000

1,499,189

Vodafone Group PLC 5.785% 2/27/12 (i)

160,000

158,750

TOTAL UNITED KINGDOM

3,172,861

United States of America - 2.0%

BA Covered Bond 4.125% 4/5/12

EUR

1,700,000

2,416,090

Banca Popolare di Lodi Investor Trust III 6.742% (i)

EUR

200,000

290,600

BSP Finance BV 10.75% 11/1/11

100,000

101,500

DaimlerChrysler NA Holding Corp.:

4.375% 3/16/10

EUR

250,000

359,831

6.1331% 3/13/09 (i)

100,000

99,996

HSBC Finance Corp. 4.875% 5/30/17

EUR

350,000

493,703

Morgan Stanley 4.953% 7/20/12 (i)

EUR

430,000

610,275

Pemex Project Funding Master Trust (Reg. S) 5.5% 2/24/25

EUR

500,000

703,139

Procter & Gamble Co. 5.125% 10/24/17

EUR

150,000

218,385

Corporate Bonds - continued

Principal Amount (d)

Value

Nonconvertible Bonds - continued

United States of America - continued

Schering-Plough Corp. 5.375% 10/1/14

EUR

200,000

$ 291,273

SLM Corp.:

4.88% 6/15/09 (i)

EUR

100,000

140,273

4.93% 12/15/10 (i)

EUR

200,000

271,876

UniCredito Italiano Capital Trust I 4.028% (i)

EUR

420,000

530,481

WaMu Covered Bond Program 4.375% 5/19/14

EUR

550,000

781,047

TOTAL UNITED STATES OF AMERICA

7,308,469

TOTAL NONCONVERTIBLE BONDS

38,832,117

TOTAL CORPORATE BONDS

(Cost $37,757,001)

39,147,267

Government Obligations - 21.7%

Canada - 0.7%

Canadian Government 5.25% 6/1/12

CAD

2,250,000

2,484,008

Finland - 0.5%

Finnish Government 3.875% 9/15/17

EUR

1,350,000

1,884,882

France - 2.2%

French Republic:

1% 7/25/17

EUR

1,800,000

2,425,813

5.5% 4/25/29

EUR

3,590,000

5,857,062

TOTAL FRANCE

8,282,875

Germany - 5.3%

German Federal Republic:

3.75% 12/12/08

EUR

11,740,000

16,927,946

3.75% 7/4/13

EUR

100,000

141,794

4% 4/13/12

EUR

600,000

863,525

4% 7/4/16

EUR

637,500

908,204

4.25% 7/4/17

EUR

580,000

839,808

TOTAL GERMANY

19,681,277

Ireland - 0.2%

Irish Republic 4.5% 10/18/18

EUR

450,000

655,474

Italy - 0.5%

Italian Republic 6% 5/1/31

EUR

1,210,000

2,042,652

Government Obligations - continued

Principal Amount (d)

Value

Japan - 9.2%

Japan Government:

0.5822% to 0.5928% 2/4/08

JPY

550,000,000

$ 4,760,881

0.9% 11/20/20 (i)

JPY

375,000,000

3,117,956

1.3% 12/20/11

JPY

210,000,000

1,841,587

1.3% 3/20/15

JPY

900,000,000

7,795,526

1.5% 3/20/14

JPY

300,000,000

2,645,665

1.9% 6/20/16

JPY

660,000,000

5,924,493

2.5% 9/20/36

JPY

350,000,000

3,070,951

Real Return Bond 1.1% 12/10/16

JPY

570,284,000

4,931,479

TOTAL JAPAN

34,088,538

United Kingdom - 0.9%

UK Treasury GILT 5% 3/7/18

GBP

1,575,000

3,297,753

United States of America - 2.2%

U.S. Treasury Bonds 5% 5/15/37

$ 300,000

311,930

U.S. Treasury Inflation-Indexed Notes:

1.625% 1/15/15

1,116,174

1,083,646

2% 7/15/14

1,103,090

1,103,240

U.S. Treasury Notes:

3.375% 12/15/08

465,000

461,767

4.375% 8/15/12

185,000

187,356

4.5% 5/15/17

950,000

952,746

4.625% 2/29/12

130,000

132,641

4.75% 5/31/12

1,020,000

1,046,536

4.75% 8/15/17

200,000

204,406

5% 8/15/11

2,500,000

2,588,085

TOTAL UNITED STATES OF AMERICA

8,072,353

TOTAL GOVERNMENT OBLIGATIONS

(Cost $77,113,906)

80,489,812

U.S. Government Agency - Mortgage Securities - 0.6%

Fannie Mae - 0.6%

6% 11/1/37 (h)
(Cost $2,251,758)

2,250,000

2,266,063

Asset-Backed Securities - 0.7%

Principal Amount (d)

Value

Bosphorus Financial Services Ltd. (Reg. S) 7.16% 2/15/12 (i)

$ 250,000

$ 248,750

Clock Finance BV Series 2007-1 Class B2, 4.256% 2/25/15 (i)

EUR

100,000

143,721

Mermaid Secured Finance Ltd. Series 2007-1:

Class C, 4.905% 1/30/40 (i)

EUR

50,000

70,991

Class D, 5.105% 1/30/40 (i)

EUR

100,000

141,258

Preferred Term Securities XII Ltd. 7.3144% 12/24/33 (g)(i)

400,000

400,000

Preferred Term Securities XXIII Ltd. 5.8944% 12/22/36 (g)(i)

331,814

316,882

Prime Bricks Series 2007-1:

Class B, 4.905% 1/30/40 (i)

EUR

50,000

70,991

Class C, 5.105% 1/30/40 (i)

EUR

50,000

70,636

Promise K 2006-1 GmbH Series I 2006-1 Class D, 5.425% 3/10/17 (i)

EUR

100,000

136,752

Provide Bricks Series 2007-1 Class B, 4.965% 1/30/40 (i)

EUR

200,000

282,226

Red & Black Consumer PLC Series 2006-1 Class C, 4.706% 5/15/21 (i)

EUR

300,000

433,640

Whinstone Capital Management Ltd. Series 2005-1X Class B1, 7.1719% 10/25/45 (i)

GBP

140,311

286,608

TOTAL ASSET-BACKED SECURITIES

(Cost $2,559,984)

2,602,455

Collateralized Mortgage Obligations - 0.2%

Private Sponsor - 0.2%

Arkle Master Issuer PLC floater Series 2007-1X Class 1C, 5.77% 2/17/52 (i)

200,000

200,000

Permanent Master Issuer PLC floater Series 2006-1
Class 2C, 5.6425% 7/17/42 (i)

400,000

388,560

TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS

(Cost $600,000)

588,560

Commercial Mortgage Securities - 0.3%

Principal Amount (d)

Value

Ireland - 0.1%

European Property Capital Series 4 Class C, 6.3194% 7/20/14 (i)

GBP

41,701

$ 84,543

German Residential Asset Note Distributor PLC Series 1 Class A, 4.893% 7/20/16 (i)

EUR

182,612

249,700

Rivoli Pan Europe PLC Series 2006-1 Class B 4.297% 8/3/18 (i)

EUR

100,000

139,360

TOTAL IRELAND

473,603

Japan - 0.1%

JLOC 37 LLC (Reg. S) Series X Class B1, 1.3819% 1/15/15 (i)

JPY

19,168,000

165,855

Netherlands - 0.0%

Skyline BV Series 2007-1 Class D, 5.463% 7/22/43 (i)

EUR

100,000

137,636

United Kingdom - 0.1%

Broadgate PLC 7.0438% 10/5/25 (i)

GBP

44,750

91,968

Canary Wharf Finance II plc Series 3MUK Class C2, 6.8256% 10/22/37 (i)

GBP

150,000

296,358

TOTAL UNITED KINGDOM

388,326

TOTAL COMMERCIAL MORTGAGE SECURITIES

(Cost $1,107,692)

1,165,420

Supranational Obligations - 0.5%

European Investment Bank 5.625% 6/7/32
(Cost $1,750,663)

GBP

800,000

1,825,206

Preferred Securities - 0.0%

Cayman Islands - 0.0%

MUFG Capital Finance 1 Ltd. 6.346% (i)
(Cost $175,000)

$ 175,000

169,783

Money Market Funds - 6.3%

Shares

Value

Fidelity Cash Central Fund, 4.97% (b)

19,416,523

$ 19,416,523

Fidelity Securities Lending Cash Central Fund, 5.02% (b)(c)

3,878,463

3,878,463

TOTAL MONEY MARKET FUNDS

(Cost $23,294,986)

23,294,986

TOTAL INVESTMENT PORTFOLIO - 102.8%

(Cost $337,966,729)

381,776,474

NET OTHER ASSETS - (2.8)%

(10,514,944)

NET ASSETS - 100%

$ 371,261,530

Currency Abbreviations

CAD

-

Canadian dollar

EUR

-

European Monetary Unit

GBP

-

British pound

JPY

-

Japanese yen

NOK

-

Norwegian krone

RUB

-

Russian ruble

Legend

(a) Non-income producing

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

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

(d) Principal amount is stated in United States dollars unless otherwise noted.

(e) 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 $3,138,393 or 0.8% of net assets.

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

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

(j) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $103,750 or 0.0% of net assets.

Additional information on each holding is as follows:

Security

Acquisition Date

Acquisition Cost

DDI Holding AS 9.3% 1/19/12

3/22/07

$ 103,375

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

Fidelity Cash Central Fund

$ 696,362

Fidelity Securities Lending Cash Central Fund

56,757

Total

$ 753,119

Other Information

The composition of credit quality ratings as a percentage of net assets is as follows (ratings are unaudited):

U.S. Government and U.S. Government Agency Obligations

2.8%

AAA,AA,A

25.1%

BBB

2.9%

BB

0.6%

B

0.0%

CCC,CC,C

0.0%

Not Rated

1.8%

Equities

62.0%

Short-Term Investments and Net Other Assets

4.8%

100.0%

We have used ratings from Moody's Investors Services, Inc. Where Moody's ratings are not available, we have used S&P ratings. Percentages are adjusted for the effect of futures contracts, if applicable.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements

Statement of Assets and Liabilities

October 31, 2007

Assets

Investment in securities, at value (including securities loaned of $3,836,382) - See accompanying schedule:

Unaffiliated issuers (cost $314,671,743)

$ 358,481,488

Fidelity Central Funds (cost $23,294,986)

23,294,986

Total Investments (cost $337,966,729)

$ 381,776,474

Foreign currency held at value (cost $786,508)

801,746

Receivable for investments sold

12,410,835

Receivable for fund shares sold

1,340,683

Dividends receivable

281,034

Interest receivable

1,808,232

Distributions receivable from Fidelity Central Funds

78,242

Prepaid expenses

107

Other receivables

11,205

Total assets

398,508,558

Liabilities

Payable to custodian bank

$ 34,287

Payable for investments purchased
Regular delivery

20,513,250

Delayed delivery

2,256,258

Payable for fund shares redeemed

120,948

Accrued management fee

207,765

Other affiliated payables

77,973

Other payables and accrued expenses

158,084

Collateral on securities loaned, at value

3,878,463

Total liabilities

27,247,028

Net Assets

$ 371,261,530

Net Assets consist of:

Paid in capital

$ 291,239,903

Undistributed net investment income

4,821,537

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions

31,311,956

Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies

43,888,134

Net Assets, for 14,616,937 shares outstanding

$ 371,261,530

Net Asset Value, offering price and redemption price per share ($371,261,530 ÷ 14,616,937 shares)

$ 25.40

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements - continued

Statement of Operations

Year ended October 31, 2007

Investment Income

Dividends

$ 3,606,176

Interest

4,144,130

Income from Fidelity Central Funds

753,119

8,503,425

Less foreign taxes withheld

(184,930)

Total income

8,318,495

Expenses

Management fee

$ 2,212,280

Transfer agent fees

733,184

Accounting and security lending fees

161,168

Custodian fees and expenses

265,581

Independent trustees' compensation

1,103

Registration fees

50,027

Audit

95,993

Legal

11,013

Miscellaneous

19,824

Total expenses before reductions

3,550,173

Expense reductions

(62,244)

3,487,929

Net investment income (loss)

4,830,566

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities:

Unaffiliated issuers (net of foreign taxes of $38,652)

32,294,840

Foreign currency transactions

103,167

Total net realized gain (loss)

32,398,007

Change in net unrealized appreciation (depreciation) on:

Investment securities (net of increase in deferred foreign taxes of $2,855)

24,915,384

Assets and liabilities in foreign currencies

72,966

Total change in net unrealized appreciation (depreciation)

24,988,350

Net gain (loss)

57,386,357

Net increase (decrease) in net assets resulting from operations

$ 62,216,923

See accompanying notes which are an integral part of the financial statements.

Annual Report

Statement of Changes in Net Assets

Year ended
October 31,
2007

Year ended
October 31,
2006

Increase (Decrease) in Net Assets

Operations

Net investment income (loss)

$ 4,830,566

$ 2,891,675

Net realized gain (loss)

32,398,007

27,388,723

Change in net unrealized appreciation (depreciation)

24,988,350

(1,208,311)

Net increase (decrease) in net assets resulting
from operations

62,216,923

29,072,087

Distributions to shareholders from net investment income

(2,296,243)

(1,257,249)

Distributions to shareholders from net realized gain

(24,110,533)

(15,002,921)

Total distributions

(26,406,776)

(16,260,170)

Share transactions
Proceeds from sales of shares

157,223,429

103,989,584

Reinvestment of distributions

25,322,315

15,532,156

Cost of shares redeemed

(107,252,455)

(63,446,357)

Net increase (decrease) in net assets resulting from share transactions

75,293,289

56,075,383

Redemption fees

14,161

9,915

Total increase (decrease) in net assets

111,117,597

68,897,215

Net Assets

Beginning of period

260,143,933

191,246,718

End of period (including undistributed net investment income of $4,821,537 and undistributed net investment income of $2,652,173, respectively)

$ 371,261,530

$ 260,143,933

Other Information

Shares

Sold

6,881,716

4,699,494

Issued in reinvestment of distributions

1,178,330

741,039

Redeemed

(4,712,119)

(2,883,798)

Net increase (decrease)

3,347,927

2,556,735

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights

Years ended October 31,

2007

2006

2005

2004

2003

Selected Per-Share Data

Net asset value, beginning of period

$ 23.08

$ 21.95

$ 19.69

$ 18.06

$ 14.84

Income from Investment Operations

Net investment income (loss) B

.35

.28

.17 E

.10 F

.15

Net realized and unrealized gain (loss)

4.27

2.66

2.54

1.85

3.29

Total from investment operations

4.62

2.94

2.71

1.95

3.44

Distributions from net investment income

(.20)

(.14)

(.13)

(.32)

(.22)

Distributions from net realized gain

(2.10)

(1.67)

(.32)

-

-

Total distributions

(2.30)

(1.81)

(.45)

(.32)

(.22)

Redemption fees added to paid in capital B

- H

-H

-H

-H

-H

Net asset value, end of period

$ 25.40

$ 23.08

$ 21.95

$ 19.69

$ 18.06

Total Return A

21.83%

14.23%

13.92%

10.93%

23.49%

Ratios to Average Net Assets C, G

Expenses before reductions

1.14%

1.18%

1.17%

1.20%

1.29%

Expenses net of fee waivers, if any

1.14%

1.18%

1.17%

1.20%

1.29%

Expenses net of all reductions

1.12%

1.14%

1.15%

1.19%

1.28%

Net investment income (loss)

1.55%

1.27%

.80% E

.54% F

.98%

Supplemental Data

Net assets, end of period (000 omitted)

$ 371,262

$ 260,144

$ 191,247

$ 137,619

$ 115,864

Portfolio turnover rate D

169%

208%

95%

94%

113%

A Total returns would have been lower had certain expenses not been reduced during the periods shown.

B Calculated based on average shares outstanding during the period.

C Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

E Investment income per share reflects a special dividend which amounted to $.03 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .66%.

F Net investment income per share includes approximately $.05 per share received as a result of a reorganization of an issuer that was in bankruptcy. Excluding this non-recurring amount, the ratio of net investment income (loss) to average net assets would have been .26%.

G Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.

H Amount represents less than $.01 per share.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Notes to Financial Statements

For the period ended October 31, 2007

1. Organization.

Fidelity Global Balanced Fund (the Fund) is a fund of Fidelity Charles Street Trust (the trust)(formerly of Fidelity Investment Trust) and is authorized to issue an unlimited number of shares. Effective, April 19, 2007, the Board of Trustees approved an Agreement and Plan of Reorganization whereby the Fund reorganized into Fidelity Charles Street Trust effective June 29, 2007 (Trust Reorganization). The Trust Reorganization does not impact the Fund's investment strategies or Fidelity Management & Research Company's(FMR) management of the Fund. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.

2. Investments in Fidelity Central Funds.

The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.

The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.

A complete list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request.

3. Significant Accounting Policies.

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the Fund:

Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.

Annual Report

Notes to Financial Statements - continued

3. Significant Accounting Policies - continued

Security Valuation - continued

Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Debt securities, including restricted securities, for which quotations are readily available, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as 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 do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds and monitoring current market trading activity, interest rates, credit quality and default rates for debt instruments. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.

Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.

Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.

Annual Report

3. Significant Accounting Policies - continued

Foreign Currency - continued

The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Inflation-indexed bonds are fixed-income securities whose principal value is periodically adjusted according to the rate of inflation. Interest is accrued based on the principal value which is adjusted for inflation. Any increase in the principal amount of an inflation-indexed bond is recorded as interest income, even though the principal is not received until maturity. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.

Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known. All legal and other expenses associated with the Trust Reorganization will be paid by FMR.

Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Annual Report

Notes to Financial Statements - continued

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

Distributions are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund will claim a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.

Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), market discount, partnerships, deferred trustees compensation, and losses deferred due to wash sales.

The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:

Unrealized appreciation

$ 47,527,379

Unrealized depreciation

(4,267,832)

Net unrealized appreciation (depreciation)

43,259,547

Undistributed ordinary income

15,437,697

Undistributed long-term capital gain

16,368,674

Cost for federal income tax purposes

$ 338,516,927

The tax character of distributions paid was as follows:

October 31, 2007

October 31, 2006

Ordinary Income

$ 8,496,094

$ 5,569,465

Long-term Capital Gains

17,910,682

10,690,705

Total

$ 26,406,776

$ 16,260,170

Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to 1.00% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.

New Accounting Pronouncements. In July 2006, Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement 109 (FIN 48), was issued and is effective on the last business day of the semiannual reporting period for fiscal years beginning after December 15, 2006. FIN 48 sets forth a threshold for financial statement recognition, measurement and disclosure of a tax position taken or expected to be taken on a tax return. Management

Annual Report

3. Significant Accounting Policies - continued

New Accounting Pronouncements - continued

has concluded that the adoption of FIN 48 will not result in a material impact on the Fund's net assets, results of operations and financial statement disclosures.

In addition, in September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosures.

4. Operating Policies.

Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.

Delayed Delivery Transactions and When-Issued Securities. The Fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.

Annual Report

Notes to Financial Statements - continued

4. Operating Policies - continued

Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $535,266,881 and $466,290,958, respectively.

6. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annual management fee rate was .71% of the Fund's average net assets.

Transfer Agent Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FSC receives account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period the transfer agent fees were equivalent to an annual rate of .23% of average net assets.

Accounting and Security Lending Fees. FSC maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.

Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $2,173 for the period.

Annual Report

7. Committed Line of Credit.

The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $630 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.

8. Security Lending.

The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $56,757.

9. Expense Reductions.

Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $43,732 for the period. In addition, through arrangements with the Fund's transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's transfer agent expenses by $14,966.

Annual Report

Notes to Financial Statements - continued

10. Credit Risk.

The Fund invests a portion of its assets in securities of issuers that hold mortgage securities, including subprime mortgage securities. The value of these securities is sensitive to changes in economic conditions, including delinquencies and/or defaults, and may be adversely affected by shifts in the market's perception of the issuers and changes in interest rates.

11. Other.

The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.

The United States Securities and Exchange Commission ("SEC") is conducting an investigation of FMR (covering the years 2002 to 2004) arising from gifts, gratuities and business entertainment provided by certain brokers to certain individuals who were employed on FMR's domestic equity trading desk during that period. FMR is in discussions with the SEC staff regarding the possible resolution of the matter, but as of period-end no final resolution has been reached.

In December 2006, the Independent Trustees completed their own investigation of the matter with the assistance of independent counsel. The Independent Trustees and FMR agree that, despite the absence of proof that the Fidelity mutual funds experienced diminished execution quality as a result of the improper receipt of gifts and business entertainment, the conduct at issue was serious and is worthy of redress. Accordingly, the Independent Trustees have requested and FMR has agreed to pay $42 million to Fidelity mutual funds, plus interest to be determined at the time that payment is made. A method of allocating this payment among the funds has not yet been determined. The total payment to the Fund is not anticipated to have a material impact on the Fund's net assets. In addition, FMR reimbursed related legal expenses which are recorded in the accompanying Statement of Operations as an expense reduction.

Annual Report

Report of Independent Registered Public Accounting Firm

To the Trustees of Fidelity Charles Street Trust and the Shareholders of Fidelity Global Balanced Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Global Balanced Fund (a fund of Fidelity Charles Street Trust) at October 31, 2007, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Global Balanced Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2007 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

Boston, Massachusetts

December 20, 2007

Annual Report

Trustees and Officers

The Trustees, Members of the Advisory Board, and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Except for James C. Curvey, each of the Trustees oversees 370 funds advised by FMR or an affiliate. Mr. Curvey oversees 340 funds advised by FMR or an affiliate.

The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers and Advisory Board Members hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.

The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.

Interested Trustees*:

Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation

Edward C. Johnson 3d (77)

Year of Election or Appointment: 1981

Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR LLC; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL).

James C. Curvey (72)

Year of Election or Appointment: 2007

Mr. Curvey also serves as Trustee (2007-present) or Member of the Advisory Board (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-present) and Director of FMR LLC. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR LLC (1997-2000) and President of Fidelity Strategic Investments (2000-2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution).

* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR. FMR Corp. merged with FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Age; Principal Occupation

Dennis J. Dirks (59)

Year of Election or Appointment: 2005

Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present).

Albert R. Gamper, Jr. (65)

Year of Election or Appointment: 2006

Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System.

George H. Heilmeier (71)

Year of Election or Appointment: 2004

Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame.

James H. Keyes (67)

Year of Election or Appointment: 2007

Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions).

Marie L. Knowles (61)

Year of Election or Appointment: 2001

Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California.

Ned C. Lautenbach (63)

Year of Election or Appointment: 2000

Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations.

Cornelia M. Small (63)

Year of Election or Appointment: 2005

Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002-present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy.

William S. Stavropoulos (68)

Year of Election or Appointment: 2001

Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science.

Kenneth L. Wolfe (68)

Year of Election or Appointment: 2005

Prior to his retirement in 2001, Mr. Wolfe was Chairman and Chief Executive Officer of Hershey Foods Corporation (1993-2001). He currently serves as a member of the boards of Adelphia Communications Corporation (2003-present), Bausch & Lomb, Inc., and Revlon Inc. (2004-present).

Advisory Board Members and Executive Officers**:

Correspondence intended for Mr. Mauriello, Mr. Thomas, and Mr. Wiley may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for each executive officer and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation

Peter S. Lynch (63)

Year of Election or Appointment: 2003

Member of the Advisory Board of Fidelity Charles Street Trust. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund.

Joseph Mauriello (63)

Year of Election or Appointment: 2007

Member of the Advisory Board of Fidelity Charles Street Trust. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services firm, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd., (global insurance and re-insurance company, 2006-present) and of Arcadia Resources Inc., (health care services and products, 2007-present). He also served as a Director of the Hamilton Funds of the Bank of New York (2006-2007).

David M. Thomas (58)

Year of Election or Appointment: 2007

Member of the Advisory Board of Fidelity Charles Street Trust. Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and health-care information solutions). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands Inc. (consumer products holding company), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present).

Michael E. Wiley (57)

Year of Election or Appointment: 2007

Member of the Advisory Board of Fidelity Charles Street Trust. Mr. Wiley also serves as Sr. Energy Advisor of Katzenbach Partners, LLC (consulting firm, 2006-present) and a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). He serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production company, 2005-present). In addition, he also serves as a Director of Post Oak Bank (privately-held bank, 2004-present), and an Advisory Director of Riverstone Holdings (private investment firm). Previously, Mr. Wiley served as Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services company, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production company, 2001-2005).

Kimberley H. Monasterio (43)

Year of Election or Appointment: 2007

President and Treasurer of Global Balanced. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004).

Ren Y. Cheng (50)

Year of Election or Appointment: 2007

Vice President of Global Balanced. Mr. Cheng also serves as Vice President of certain Asset Allocation Funds (2007-present). Mr. Cheng is Chief Investment Officer of the Global Asset Allocation group (2007-present). Mr. Cheng also serves as Vice President of FMR and FMR Co., Inc. Mr. Cheng served as Managing Director of the Global Asset Allocation group (2005-2007). Previously, Mr. Cheng served as a portfolio manager for the Fidelity Freedom Funds.

Boyce I. Greer (51)

Year of Election or Appointment: 2005

Vice President of Global Balanced. Mr. Greer also serves as Vice President of certain Asset Allocation Funds (2005-present), Fixed-Income Funds (2006-present), and Money Market Funds (2006-present). Mr. Greer is also a Trustee of other investment companies advised by FMR (2003-present). Mr. Greer is an Executive Vice President of FMR (2005-present) and FMR Co., Inc. (2005-present), and Senior Vice President of Fidelity Investments Money Management, Inc. (2006-present). Previously, Mr. Greer served as Vice President of certain Fidelity Equity Funds (2005-2007), a Director and Managing Director of Strategic Advisers, Inc. (2002-2005), and Executive Vice President (2000-2002) and Money Market Group Leader (1997-2002) of the Fidelity Investments Fixed Income Division. Mr. Greer also served as Vice President of Fidelity's Money Market Funds (1997-2002), Senior Vice President of FMR (1997-2002), and Vice President of FIMM (1998-2002).

Eric D. Roiter (58)

Year of Election or Appointment: 1998

Secretary of Global Balanced. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005).

Scott C. Goebel (39)

Year of Election or Appointment: 2007

Assistant Secretary of Global Balanced. Mr. Goebel also serves as Assistant Secretary of other Fidelity funds (2007-present), and is an employee of FMR.

R. Stephen Ganis (41)

Year of Election or Appointment: 2006

Anti-Money Laundering (AML) officer of Global Balanced. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR LLC (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002).

Joseph B. Hollis (59)

Year of Election or Appointment: 2006

Chief Financial Officer of Global Balanced. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005).

Kenneth A. Rathgeber (60)

Year of Election or Appointment: 2004

Chief Compliance Officer of Global Balanced. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002).

Bryan A. Mehrmann (46)

Year of Election or Appointment: 2005

Deputy Treasurer of Global Balanced. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004).

Kenneth B. Robins (38)

Year of Election or Appointment: 2005

Deputy Treasurer of Global Balanced. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002).

Robert G. Byrnes (40)

Year of Election or Appointment: 2005

Assistant Treasurer of Global Balanced. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003).

Peter L. Lydecker (53)

Year of Election or Appointment: 2004

Assistant Treasurer of Global Balanced. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR.

Paul M. Murphy (60)

Year of Election or Appointment: 2007

Assistant Treasurer of Global Balanced. Mr. Murphy also serves as Assistant Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2007-present). Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity Funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services Group (FPCMS) (1994-2007).

Gary W. Ryan (49)

Year of Election or Appointment: 2005

Assistant Treasurer of Global Balanced. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005).

** FMR Corp. merged with FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees

Fidelity Global Balanced

Each year, typically in July, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.

The Board meets regularly each month except August and takes into account throughout the year matters bearing on Advisory Contracts. The Board, acting directly and through its separate committees, considers at each of its meetings factors that are relevant to the annual renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. At the time of the renewal, the Board had 12 standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has adopted a written charter outlining the structure and purposes of the committee. One such committee, the Equity Contract Committee, meets periodically as needed throughout the year to consider matters specifically related to the annual renewal of Advisory Contracts. The committee requests and receives information on, and makes recommendations to the Independent Trustees concerning, the approval and annual review of the Advisory Contracts.

At its July 2007 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the Advisory Contracts for the fund. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the management fee and total expenses of the fund; (iii) the total costs of the services to be provided by and the profits to be realized by the investment adviser and its affiliates from the relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders. The Board also approved amendments to the fund's agreements with foreign sub-advisers to clarify that each sub-adviser provides services as an independent contractor.

In determining whether to renew the Advisory Contracts for the fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contract is consistent with Fidelity's fiduciary duty under applicable law. In addition to evaluating the specific factors noted above, the Board, in reaching its determination, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.

Annual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the background of the fund's portfolio manager and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.

Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board noted that Fidelity's analysts have access to a variety of technological tools that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers.

Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services. The Board also considered that Fidelity voluntarily pays for market data out of its own resources. The Board also considered the agreement reached between the Independent Trustees and Fidelity in December 2006 following an independent review of matters relating to receipt of travel, entertainment, gifts and gratuities in violation of Fidelity policies.

Annual Report

The Board noted that the growth of fund assets across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.

Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing for a large variety of mutual fund investor services. For example, fund shareholders are offered the privilege of exchanging shares of the fund for shares of other Fidelity funds, as set forth in the fund's prospectus, without paying a sales charge. The Board noted that, since the last Advisory Contract renewals in July 2006, Fidelity has taken a number of actions that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure the investment research teams; (ii) contractually agreeing to reduce the management fee on Fidelity Advisor Floating Rate High Income Fund; (iii) contractually agreeing to reduce the management fees on Fidelity's California, Massachusetts, New Jersey, and New York AMT Tax-Free Money Market Funds, launching new Institutional Classes and Service Classes of these funds, and contractually agreeing to impose expense limitations on these funds; (iv) eliminating the exchange fee on the Fidelity Select Portfolios and reducing the pricing and bookkeeping fee rates for these funds; (v) reducing the maximum transfer agency fee rates on high income funds and certain equity funds; (vi) proposing amended management contracts that, if approved by shareholders, will add a performance adjustment component to the management fees paid by 18 Fidelity Advisor equity funds; (vii) contractually agreeing to reduce fees for Ultra-Short Central Fund and the money market Central Funds; (viii) waiving the Fidelity Advisor funds' contingent deferred sales charge on certain redemptions made through systematic withdrawal programs; and (ix) amending the management contracts for equity and fixed-income funds whose management contracts incorporate a "group fee" structure by adding four new fee "breakpoints" to the group fee rate schedules.

Investment Performance and Compliance. The Board considered whether the fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance, as well as the fund's relative investment performance measured against (i) a proprietary custom index, and (ii) a peer group of mutual funds deemed appropriate by the Board over multiple periods. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2006, the fund's cumulative total returns, the cumulative total returns of a proprietary custom index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Morningstar, Inc. as having an investment style similar to that of the fund based on underlying portfolio holdings. The fund's proprietary custom index is an index developed by FMR that represents the performance of the fund's general investment categories in both equity and bond securities. The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten number noted below each chart corresponds to the percentile box and represents the percentage of funds in the peer group whose performance was equal to or lower than that of the fund.

Annual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Fidelity Global Balanced Fund

The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of the fund was in the third quartile for all the periods shown. The Board also stated that the investment performance of the fund was higher than its benchmark for the three- and five-year periods, although the fund's one-year cumulative total return was lower than its benchmark. The Board discussed with FMR actions to be taken by FMR to improve the fund's disappointing performance relative to its peer group. The Board will continue to closely monitor the performance of the fund in the coming year.

The Board considered that FMR has taken steps to refocus and strengthen equity research, equity portfolio management, and compliance.

Annual Report

Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance, the Board concluded that the nature, extent, and quality of the services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.

Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared. The Board also considered supplemental information about how the fund's management fee and total expenses ranked relative to groups based on Lipper classifications, which take into account a fund's market capitalization and style.

The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group." The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 31% means that 69% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.

Annual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Fidelity Global Balanced Fund

The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2006.

Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.

In its review of the fund's total expenses, the Board considered the fund's management fee as well as other fund expenses, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of the fund compared to competitive fund median expenses. The fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

The Board noted that the fund's total expenses ranked above its competitive median for 2006.

In its review of total expenses, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.

Based on its review, the Board concluded that the fund's total expenses were reasonable, although above the median of the universe presented for comparison, in light of the services that the fund and its shareholders receive and the other factors considered.

Annual Report

Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.

On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.

PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of the results of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.

The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.

The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and determined that the amount of profit is a fair entrepreneurial profit for the management of the fund.

Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions, including reductions that occur through operation of the transfer agent agreement. The transfer agent fee varies in part based on the number of accounts in the fund. If the number of accounts decreases or the average account size increases, the overall transfer agent fee rate decreases.

Annual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule. In connection with the renewal of the fund's management contract, the Board approved amendments to the fund's management contract that added four new fee breakpoints to the group fee rate schedule for assets under FMR's management above $1,386 billion. The Board considered that the group fee rate declines under both the present and amended schedules, but that under the amended schedule, the group fee rate declines faster as assets under FMR's management exceed $1,386 billion. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.

The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.

Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on several topics, including (i) fund performance trends and actions to be taken by FMR to improve certain funds' overall performance; (ii) Fidelity's portfolio manager compensation structure, including its effects on fund profitability and the extent to which portfolio manager compensation is linked to fund performance; (iii) Fidelity's fee structures; (iv) the funds' sub-advisory arrangements; and (v) accounts managed by Fidelity other than the Fidelity funds.

Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.

Annual Report

Proxy Voting Results

A special meeting of the fund's shareholders was held on September 19, 2007. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.

PROPOSAL 1

To amend the Declaration of Trust to reduce the required quorum for shareholder meetings.A

# of
Votes

% of
Votes

Affirmative

6,953,965,017.17

79.755

Against

1,116,475,941.81

12.805

Abstain

402,432,004.05

4.615

Broker Non-Votes

246,268,969.22

2.825

TOTAL

8,719,141,932.25

100.000

PROPOSAL 2

To elect a Board of Trustees.A

James C. Curvey

Affirmative

8,328,205,089.40

95.516

Withheld

390,936,842.85

4.484

TOTAL

8,719,141,932.25

100.000

Dennis J. Dirks

Affirmative

8,352,585,592.40

95.796

Withheld

366,556,339.85

4.204

TOTAL

8,719,141,932.25

100.000

Albert R. Gamper, Jr.

Affirmative

8,351,144,334.10

95.779

Withheld

367,997,598.15

4.221

TOTAL

8,719,141,932.25

100.000

George H. Heilmeier

Affirmative

8,337,589,827.43

95.624

Withheld

381,552,104.82

4.376

TOTAL

8,719,141,932.25

100.000

Edward C. Johnson 3d

Affirmative

8,318,438,978.01

95.404

Withheld

400,702,954.24

4.596

TOTAL

8,719,141,932.25

100.000

James H. Keyes

Affirmative

8,352,335,774.33

95.793

Withheld

366,806,157.92

4.207

TOTAL

8,719,141,932.25

100.000

Marie L. Knowles

Affirmative

8,344,274,535.68

95.701

Withheld

374,867,396.57

4.299

TOTAL

8,719,141,932.25

100.000

Ned C. Lautenbach

Affirmative

8,346,116,027.99

95.722

Withheld

373,025,904.26

4.278

TOTAL

8,719,141,932.25

100.000

Cornelia M. Small

Affirmative

8,347,140,792.84

95.734

Withheld

372,001,139.41

4.266

TOTAL

8,719,141,932.25

100.000

William S. Stavropoulos

Affirmative

8,337,376,352.74

95.622

Withheld

381,765,579.51

4.378

TOTAL

8,719,141,932.25

100.000

Kenneth L. Wolfe

Affirmative

8,346,909,016.15

95.731

Withheld

372,232,916.10

4.269

TOTAL

8,719,141,932.25

100.000

A Denotes trust-wide proposal and voting results.

Annual Report

Distributions

The Board of Trustees of Fidelity Global Balanced Fund voted to pay on December 10, 2007, to shareholders of record at the opening of business on December 7, 2007, a distribution of $1.83 per share derived from capital gains realized from sales of portfolio securities and a dividend of $0.33 per share from net investment income.

The fund hereby designates as a capital gain dividend with respect to the taxable year ended October 31, 2007, $16,479,356 or, if subsequently determined to be different, the net capital gain of such year.

The fund designates 24% of the dividends distributed in December during the fiscal year as amounts which may be taken into account as a dividend for the purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.

The amounts per share which represent income derived from sources within, and taxes paid to, foreign countries or possessions of the United States are $0.251 and $0.0138 for the dividend paid December 11, 2006.

The fund will notify shareholders in January 2008 of amounts for use in preparing 2007 income tax returns.

Annual Report

Managing Your Investments

Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.

By Phone

Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.

(phone_graphic)

Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555

Press

1   For mutual fund and brokerage trading.

2   For quotes.*

3   For account balances and holdings.

4   To review orders and mutual
fund activity.

5   To change your PIN.

*0   To speak to a Fidelity representative.

By PC

Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.

(computer_graphic)

Fidelity's Web Site
www.fidelity.com

* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.

Annual Report

To Write Fidelity

We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.

(letter_graphic)

Making Changes
To Your Account

(such as changing name, address, bank, etc.)

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002

(letter_graphic)

For Non-Retirement
Accounts

Buying shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003

Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

Selling shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035

Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

General Correspondence

Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500

(letter_graphic)

For Retirement
Accounts

Buying shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003

Selling shares

Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035

Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015

General Correspondence

Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500

Annual Report

To Visit Fidelity

For directions and hours,
please call 1-800-544-9797.

Arizona

7001 West Ray Road
Chandler, AZ

15445 N. Scottsdale Road
Scottsdale, AZ

California

815 East Birch Street
Brea, CA

1411 Chapin Avenue
Burlingame, CA

851 East Hamilton Avenue
Campbell, CA

19200 Von Karman Avenue
Irvine, CA

601 Larkspur Landing Circle
Larkspur, CA

10100 Santa Monica Blvd.
Los Angeles, CA

27101 Puerta Real
Mission Viejo, CA

73-575 El Paseo
Palm Desert, CA

251 University Avenue
Palo Alto, CA

123 South Lake Avenue
Pasadena, CA

16995 Bernardo Ctr. Drive
Rancho Bernardo, CA

1220 Roseville Parkway
Roseville, CA

1740 Arden Way
Sacramento, CA

7676 Hazard Center Drive
San Diego, CA

11943 El Camino Real
San Diego, CA

8 Montgomery Street
San Francisco, CA

3793 State Street
Santa Barbara, CA

1200 Wilshire Boulevard
Santa Monica, CA

21701 Hawthorne Boulevard
Torrance, CA

2001 North Main Street
Walnut Creek, CA

6300 Canoga Avenue
Woodland Hills, CA

Colorado

1625 Broadway
Denver, CO

9185 Westview Road
Lone Tree, CO

Connecticut

48 West Putnam Avenue
Greenwich, CT

265 Church Street
New Haven, CT

300 Atlantic Street
Stamford, CT

29 South Main Street
West Hartford, CT

Delaware

400 Delaware Avenue
Wilmington, DE

Florida

4400 N. Federal Highway
Boca Raton, FL

121 Alhambra Plaza
Coral Gables, FL

2948 N. Federal Highway
Ft. Lauderdale, FL

4671 Town Center Parkway
Jacksonville, FL

1907 West State Road 434
Longwood, FL

8880 Tamiami Trail, North
Naples, FL

3501 PGA Boulevard
Palm Beach Gardens, FL

3550 Tamiami Trail, South
Sarasota, FL

1502 N. Westshore Blvd.
Tampa, FL

2465 State Road 7
Wellington, FL

Georgia

3445 Peachtree Road, N.E.
Atlanta, GA

1000 Abernathy Road
Atlanta, GA

Illinois

One North LaSalle Street
Chicago, IL

875 North Michigan Ave.
Chicago, IL

1415 West 22nd Street
Oak Brook, IL

1572 East Golf Road
Schaumburg, IL

3232 Lake Avenue
Wilmette, IL

Indiana

4729 East 82nd Street
Indianapolis, IN

Kansas

5400 College Boulevard
Overland Park, KS

Maine

Three Canal Plaza
Portland, ME

Maryland

7315 Wisconsin Avenue
Bethesda, MD

One W. Pennsylvania Ave.
Towson, MD

Massachusetts

801 Boylston Street
Boston, MA

155 Congress Street
Boston, MA

300 Granite Street
Braintree, MA

44 Mall Road
Burlington, MA

238 Main Street
Cambridge, MA

405 Cochituate Road
Framingham, MA

416 Belmont Street
Worcester, MA

Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC

Annual Report

Michigan

500 E. Eisenhower Pkwy.
Ann Arbor, MI

280 Old N. Woodward Ave.
Birmingham, MI

43420 Grand River Avenue
Novi, MI

29155 Northwestern Hwy.
Southfield, MI

Minnesota

7600 France Avenue South
Edina, MN

Missouri

1524 South Lindbergh Blvd.
St. Louis, MO

Nevada

2225 Village Walk Drive
Henderson, NV

New Jersey

150 Essex Street
Millburn, NJ

56 South Street
Morristown, NJ

396 Route 17, North
Paramus, NJ

3518 Route 1 North
Princeton, NJ

530 Broad Street
Shrewsbury, NJ

New York

1055 Franklin Avenue
Garden City, NY

37 West Jericho Turnpike
Huntington Station, NY

1271 Avenue of the Americas
New York, NY

980 Madison Avenue
New York, NY

61 Broadway
New York, NY

350 Park Avenue
New York, NY

200 Fifth Avenue
New York, NY

733 Third Avenue
New York, NY

11 Penn Plaza
New York, NY

2070 Broadway
New York, NY

1075 Northern Blvd.
Roslyn, NY

799 Central Park Avenue
Scarsdale, NY

North Carolina

4611 Sharon Road
Charlotte, NC

7011 Fayetteville Road
Durham, NC

Ohio

3805 Edwards Road
Cincinnati, OH

1324 Polaris Parkway
Columbus, OH

28699 Chagrin Boulevard
Woodmere Village, OH

Oregon

7493 SW Bridgeport Road
Tigard, OR

Pennsylvania

600 West DeKalb Pike
King of Prussia, PA

1735 Market Street
Philadelphia, PA

12001 Perry Highway
Wexford, PA

Rhode Island

47 Providence Place
Providence, RI

Tennessee

6150 Poplar Avenue
Memphis, TN

Texas

10000 Research Boulevard
Austin, TX

4001 Northwest Parkway
Dallas, TX

12532 Memorial Drive
Houston, TX

2701 Drexel Drive
Houston, TX

6560 Fannin Street
Houston, TX

6500 N. MacArthur Blvd.
Irving, TX

6005 West Park Boulevard
Plano, TX

14100 San Pedro
San Antonio, TX

1576 East Southlake Blvd.
Southlake, TX

19740 IH 45 North
Spring, TX

Utah

279 West South Temple
Salt Lake City, UT

Virginia

1861 International Drive
McLean, VA

Washington

411 108th Avenue, N.E.
Bellevue, WA

1518 6th Avenue
Seattle, WA

Washington, DC

1900 K Street, N.W.
Washington, DC

Wisconsin

595 North Barker Road
Brookfield, WI

Annual Report

Annual Report

Annual Report

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management & Research
(U.K.) Inc.

Fidelity Research & Analysis Company

Fidelity International Investment
Advisors

Fidelity Investments Japan Limited

Fidelity International Investment
Advisors (U.K.) Limited

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Service Agent

Fidelity Service Company, Inc.
Boston, MA

Custodian

Brown Brothers Harriman & Company

The Fidelity Telephone Connection

Mutual Fund 24-Hour Service

Exchanges/Redemptions
and Account Assistance 1-800-544-6666

Product Information 1-800-544-8888

Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)

TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)

Fidelity Automated Service
Telephone (FAST®) (automated graphic)    1-800-544-5555

(automated graphic)    Automated line for quickest service

(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com

GBL-UANN-1207
1.848649.100

Item 2. Code of Ethics

As of the end of the period, October 31, 2007, Fidelity Charles Street Trust (the trust) has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its President and Treasurer and its Chief Financial Officer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.

Item 3. Audit Committee Financial Expert

The Board of Trustees of the trust has determined that Marie L. Knowles is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Ms. Knowles is independent for purposes of Item 3 of Form N-CSR.

Item 4. Principal Accountant Fees and Services

(a) Audit Fees.

For the fiscal years ended October 31, 2007 and October 31, 2006, the aggregate Audit Fees billed by PricewaterhouseCoopers LLP (PwC) for professional services rendered for the audits of the financial statements, or services that are normally provided in connection with statutory and regulatory filings or engagements for those fiscal years, for the Fidelity Global Balanced Fund (the fund) and for all funds in the Fidelity Group of Funds are shown in the table below.

Fund

2007A

2006A

Fidelity Global Balanced Fund

$77,000

$74,000

All funds in the Fidelity Group of Funds audited by PwC

$14,400,000

$13,400,000

A

Aggregate amounts may reflect rounding.

(b) Audit-Related Fees.

In each of the fiscal years ended October 31, 2007 and October 31, 2006, the aggregate Audit-Related Fees billed by PwC for services rendered for assurance and related services to the fund that are reasonably related to the performance of the audit or review of the fund's financial statements, but not reported as Audit Fees, are shown in the table below.

Fund

2007A

2006A

Fidelity Global Balanced Fund

$0

$0

A

Aggregate amounts may reflect rounding.

In each of the fiscal years ended October 31, 2007 and October 31, 2006, the aggregate Audit-Related Fees that were billed by PwC that were required to be approved by the Audit Committee for services rendered on behalf of Fidelity Management & Research Company (FMR) and entities controlling, controlled by, or under common control with FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the fund ("Fund Service Providers") for assurance and related services that relate directly to the operations and financial reporting of the fund that are reasonably related to the performance of the audit or review of the fund's financial statements, but not reported as Audit Fees, are shown in the table below.

Billed By

2007A

2006A

PwC

$0

$0

A

Aggregate amounts may reflect rounding.

Fees included in the audit-related category comprise assurance and related services (e.g., due diligence services) that are traditionally performed by the independent registered public accounting firm. These audit-related services include due diligence related to mergers and acquisitions, accounting consultations and audits in connection with acquisitions, internal control reviews, attest services that are not required by statute or regulation and consultation concerning financial accounting and reporting standards.

(c) Tax Fees.

In each of the fiscal years ended October 31, 2007 and October 31, 2006, the aggregate Tax Fees billed by PwC for professional services rendered for tax compliance, tax advice, and tax planning for the fund is shown in the table below.

Fund

2007A

2006A

Fidelity Global Balanced Fund

$4,800

$4,600

A

Aggregate amounts may reflect rounding.

In each of the fiscal years ended October 31, 2007 and October 31, 2006, the aggregate Tax Fees billed by PwC that were required to be approved by the Audit Committee for professional services rendered on behalf of the Fund Service Providers for tax compliance, tax advice, and tax planning that relate directly to the operations and financial reporting of the fund is shown in the table below.

Billed By

2007A

2006A

PwC

$0

$0

A

Aggregate amounts may reflect rounding.

Fees included in the Tax Fees category comprise all services performed by professional staff in the independent registered public accounting firm's tax division except those services related to the audit. Typically, this category would include fees for tax compliance, tax planning, and tax advice. Tax compliance, tax advice, and tax planning services include preparation of original and amended tax returns, claims for refund and tax payment-planning services, assistance with tax audits and appeals, tax advice related to mergers and acquisitions and requests for rulings or technical advice from taxing authorities.

(d) All Other Fees.

In each of the fiscal years ended October 31, 2007 and October 31, 2006, the aggregate Other Fees billed by PwC for all other non-audit services rendered to the fund is shown in the table below.

Fund

2007A

2006A

Fidelity Global Balanced Fund

$1,400

$1,300

A

Aggregate amounts may reflect rounding.

In each of the fiscal years ended October 31, 2007 and October 31, 2006, the aggregate Other Fees billed by PwC that were required to be approved by the Audit Committee for all other non-audit services rendered on behalf of the Fund Service Providers that relate directly to the operations and financial reporting of the fund is shown in the table below.

Billed By

2007A

2006A

PwC

$275,000

$20,000

A

Aggregate amounts may reflect rounding.

Fees included in the All Other Fees category include services related to internal control reviews, strategy and other consulting, financial information systems design and implementation, consulting on other information systems, and other tax services unrelated to the fund.

(e) (1)

Audit Committee Pre-Approval Policies and Procedures:

The trust's Audit Committee must pre-approve all audit and non-audit services provided by the independent registered public accounting firm relating to the operations or financial reporting of the fund. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.

The trust's Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee's consideration of non-audit services by the audit firms that audit the Fidelity funds. The policies and procedures require that any non-audit service provided by a fund audit firm to a Fidelity Fund and any non-audit service provided by a fund auditor to a Fund Service Provider that relates directly to the operations and financial reporting of a Fidelity fund (Covered Service) are subject to approval by the Audit Committee before such service is provided. Non-audit services provided by a fund audit firm for a Fund Service Provider that do not relate directly to the operations and financial reporting of a Fidelity fund (Non-Covered Service) but that are expected to exceed $50,000 are also subject to pre-approval by the Audit Committee.

All Covered Services, as well as Non-Covered Services that are expected to exceed $50,000, must be approved in advance of provision of the service either: (i) by formal resolution of the Audit Committee, or (ii) by oral or written approval of the service by the Chair of the Audit Committee (or if the Chair is unavailable, such other member of the Audit Committee as may be designated by the Chair to act in the Chair's absence). The approval contemplated by (ii) above is permitted where the Treasurer determines that action on such an engagement is necessary before the next meeting of the Audit Committee. Neither pre-approval nor advance notice of Non-Covered Service engagements for which fees are not expected to exceed $50,000 is required; such engagements are to be reported to the Audit Committee monthly.

(e) (2)

Services approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X:

Audit-Related Fees:

There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended October 31, 2007 and October 31, 2006 on behalf of the fund.

There were no amounts that were required to be approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended October 31, 2007 and October 31, 2006 on behalf of the Fund Service Providers that relate directly to the operations and financial reporting of the fund.

Tax Fees:

There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended October 31, 2007 and October 31, 2006 on behalf of the fund.

There were no amounts that were required to be approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended October 31, 2007 and October 31, 2006 on behalf of the Fund Service Providers that relate directly to the operations and financial reporting of the fund.

All Other Fees:

There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended October 31, 2007 and October 31, 2006 on behalf of the fund.

There were no amounts that were required to be approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended October 31, 2007 and October 31, 2006 on behalf of the Fund Service Providers that relate directly to the operations and financial reporting of the fund.

(f) Not applicable.

(g) For the fiscal years ended October 31, 2007 and October 31, 2006, the aggregate fees billed by PwC of $2,005,000A and $725,000A for non-audit services rendered on behalf of the fund, FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and Fund Service Providers relating to Covered Services and Non-Covered Services are shown in the table below.

2007A

2006A

Covered Services

$280,000

$25,000

Non-Covered Services

$1,725,000

$700,000

A

Aggregate amounts may reflect rounding.

(h) The trust's Audit Committee has considered Non-Covered Services that were not pre-approved that were provided by PwC to Fund Service Providers to be compatible with maintaining the independence of PwC in its audit of the fund, taking into account representations from PwC, in accordance with Independence Standards Board Standard No.1, regarding its independence from the fund and its related entities.

Item 5. Audit Committee of Listed Registrants

Not applicable.

Item 6. Schedule of Investments

Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Not applicable.

Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders

There were no material changes to the procedures by which shareholders may recommend nominees to the trust's Board of Trustees.

Item 11. Controls and Procedures

(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the trust's 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 second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the trust's internal control over financial reporting.

Item 12. Exhibits

(a)

(1)

Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH.

(a)

(2)

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.

(a)

(3)

Not applicable.

(b)

Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT.

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 Charles Street Trust

By:

/s/Kimberley Monasterio

Kimberley Monasterio

President and Treasurer

Date:

December 27, 2007

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/Kimberley Monasterio

Kimberley Monasterio

President and Treasurer

Date:

December 27, 2007

By:

/s/Joseph B. Hollis

Joseph B. Hollis

Chief Financial Officer

Date:

December 27, 2007