FIDELITY HASTINGS STREET TRUST, N-30D, 1996-08-15

FIDELITY HASTINGS STREET TRUST
N-30D, 1996-08-15

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(2_FIDELITY_LOGOS)FIDELITY

GLOBAL BOND
FUND
SEMIANNUAL REPORT
JUNE 30, 1996
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

FUND TALK 7 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 10 A summary of major shifts in the
fund's investments over the past six
months.

INVESTMENTS 11 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 20 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 24 Notes to the financial statements.

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.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY,
ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, FEDERAL
RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISKS,
INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL
1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST
OR SEND MONEY.
PRESIDENT'S MESSAGE

DEAR SHAREHOLDER:
Although stocks have managed to post solid returns through the first six
months of 1996, signs of strength in the economy have led to inflation
fears, causing some uncertainty in bond markets so far this year. In 1995,
both stock and bond markets posted strong results, while the year before,
stocks posted below-average returns and bonds had one of the worst years in
history.
These market ups and downs are a normal part of investing, and there are
some basic principles that are helpful for investors to remember in
different types of markets.
Keeping in mind that the effects of interest rate changes on your bond
investments will only be "paper" gains or losses unless you sell your
shares, staying in your bond fund may be appropriate if your investment
horizon is at least a year or more. The longer your investing time frame,
the more likely it is that you will retain your principal investment
through both up and down markets. For example, a 10-year time frame, such
as saving for a college education, enables you to weather these ups and
downs in a long-term fund, which has higher potential returns. An
intermediate-length fund could be appropriate if your investment horizon is
two to four years, and a short-term bond fund could be the right choice if
you need your money in one or two years.
If your time horizon is less than a year, you might want to consider moving
some of your bond investment into a money market fund, which seeks income
and a stable share price by investing in high-quality, short-term
investments. Of course, there is no assurance that a money market fund will
achieve its goal, and it is important to remember that money market funds
are not insured or guaranteed by any agency of the U.S. government.
No matter what your investment horizon or portfolio diversity, it makes
good sense to follow a regular investment plan - investing a certain amount
of money at the same time each month or quarter - and to review your
portfolio periodically. A periodic investment plan will not, of course,
assure a profit or protect against a loss.
If you have any questions, please call us at 1-800-544-8888. We stand ready
to provide the information you need to make the investments that are right
for you.
Best regards,
Edward C. Johnson 3d
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. A fund's total
return includes changes in a fund's share price, as well as reinvestment of
any dividends (or income) and capital gains (the profits the fund earns
when it sells bonds that have grown in value). You can also look at the
fund's dividends and yields.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JUNE 30, 1996 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

Global Bond -1.11% 0.26% 22.80% 90.54%

Salomon Brothers World Government -1.48% 0.37% 67.59% n/a
Bond Index, Unhedged

General World Income Funds Average 1.69% 8.67% 49.35% n/a

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, five years or since
the fund started on December 30, 1986. For example, if you invested $1,000
in a fund that had a 5% return over the past year, the value of your
investment would be $1,050. You can compare the fund's returns to the
performance of the Salomon Brothers World Government Bond Index, Unhedged -
a market-capitalization weighted index that includes debt issues traded in
14 world government bond markets. Issues included in the Index have
fixed-rate coupons and maturities of at least one year. To measure how the
fund's performance stacked up against its peers, you can compare it to the
general world income funds average, which reflects the performance of 170
mutual funds with similar objectives tracked by Lipper Analytical Services,
Inc. over the past six months. Both benchmarks reflect reinvestment of
dividends and capital gains, if any, but do not reflect any sales charges,
brokerage commissions, or other costs of investing.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JUNE 30, 1996 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Global Bond 0.26% 4.19% 7.01%

Salomon Brothers World Government 0.37% 10.88% n/a
Bond Index, Unhedged

General World Income Funds Average 8.67% 8.27% n/a

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
IMAHDR PRASUN SHR__CHT 19960630 19960725 114826 S00000000000001
Global Bond Fund SB World Gov't.
00451 SB006
1986/12/31 10000.00 10000.00
1987/01/31 10311.24 10300.19
1987/02/28 10451.57 10461.77
1987/03/31 10698.66 10703.84
1987/04/30 10786.19 10826.47
1987/05/31 10625.67 10719.17
1987/06/30 10585.27 10632.94
1987/07/31 10339.13 10420.90
1987/08/31 10556.94 10578.02
1987/09/30 10392.69 10280.39
1987/10/31 10975.54 10972.73
1987/11/30 11449.59 11354.03
1987/12/31 11913.69 11840.71
1988/01/31 11584.23 11776.20
1988/02/29 11669.26 11879.03
1988/03/31 11956.20 12091.08
1988/04/30 11945.58 12032.32
1988/05/31 11892.44 11919.27
1988/06/30 11764.91 11659.32
1988/07/31 11775.53 11588.43
1988/08/31 11690.51 11458.77
1988/09/30 11828.67 11754.49
1988/10/31 12190.02 12297.37
1988/11/30 12413.20 12485.79
1988/12/31 12350.32 12358.69
1989/01/31 12315.76 12177.94
1989/02/28 12212.07 12186.24
1989/03/31 12177.51 12016.99
1989/04/30 12338.80 12176.02
1989/05/31 12131.43 11919.27
1989/06/30 12384.89 12158.78
1989/07/31 12788.12 12712.52
1989/08/31 12603.78 12285.24
1989/09/30 12753.55 12518.36
1989/10/31 12926.37 12623.11
1989/11/30 13064.62 12737.43
1989/12/31 13329.59 12893.27
1990/01/31 13293.50 12722.74
1990/02/28 13125.08 12527.30
1990/03/31 13281.47 12403.40
1990/04/30 13281.47 12365.08
1990/05/31 13461.93 12775.76
1990/06/30 13750.66 13010.16
1990/07/31 14231.87 13417.64
1990/08/31 14147.66 13312.90
1990/09/30 14328.11 13461.71
1990/10/31 14664.96 14063.36
1990/11/30 14821.35 14296.48
1990/12/31 14966.02 14437.63
1991/01/31 15294.80 14798.49
1991/02/28 15439.46 14802.96
1991/03/31 15229.04 14265.18
1991/04/30 15439.46 14484.89
1991/05/31 15623.57 14466.37
1991/06/30 15439.46 14315.00
1991/07/31 15597.48 14620.94
1991/08/31 15744.37 14903.88
1991/09/30 16105.47 15487.00
1991/10/31 16323.48 15649.23
1991/11/30 16241.73 15893.85
1991/12/31 16877.42 16720.32
1992/01/31 16707.23 16423.33
1992/02/29 16778.14 16331.99
1992/03/31 16749.97 16158.91
1992/04/30 16977.66 16274.51
1992/05/31 17290.75 16773.97
1992/06/30 17505.10 17243.41
1992/07/31 17767.43 17645.14
1992/08/31 18025.90 18138.85
1992/09/30 17774.98 18320.88
1992/10/31 17659.43 17823.34
1992/11/30 17394.30 17540.40
1992/12/31 17619.52 17645.14
1993/01/31 17823.07 17952.99
1993/02/28 18097.52 18306.19
1993/03/31 18496.21 18587.21
1993/04/30 18672.10 18980.01
1993/05/31 19015.32 19170.34
1993/06/30 19397.07 19129.46
1993/07/31 19692.25 19183.75
1993/08/31 20189.71 19760.49
1993/09/30 20304.78 19994.89
1993/10/31 20830.76 19961.04
1993/11/30 20764.44 19817.97
1993/12/31 21479.33 19986.59
1994/01/31 21713.86 20147.54
1994/02/28 20531.66 20015.97
1994/03/31 19053.47 19987.23
1994/04/30 18678.26 20010.22
1994/05/31 18782.43 19834.58
1994/06/30 17973.21 20120.71
1994/07/31 18300.43 20281.02
1994/08/31 18527.75 20210.77
1994/09/30 18528.69 20357.03
1994/10/31 18613.12 20683.40
1994/11/30 18690.13 20399.18
1994/12/31 17975.74 20455.39
1995/01/31 17818.85 20884.59
1995/02/28 17768.50 21419.17
1995/03/31 17884.41 22691.45
1995/04/30 18186.00 23111.71
1995/05/31 18734.45 23761.90
1995/06/30 18909.95 23901.77
1995/07/31 18874.86 23957.97
1995/08/31 18291.87 23134.70
1995/09/30 18608.17 23651.40
1995/10/31 18836.41 23827.68
1995/11/30 18963.79 24097.21
1995/12/31 19172.22 24349.49
1996/01/31 18934.57 24048.67
1996/02/29 18942.90 23926.04
1996/03/31 18905.61 23892.83
1996/04/30 18838.01 23797.66
1996/05/31 18850.84 23802.77
1996/06/30 18959.13 23989.91
IMATRL PRASUN SHR__CHT 19960630 19960725 114831 R00000000000123

$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Global Bond Fund on December 31, 1986, shortly after
the fund started. As the chart shows, by June 30, 1996, the value of the
investment would have grown to $18,959 - an 89.59% increase on the initial
investment. For comparison, look at how the Salomon Brothers World
Government Bond Index, Unhedged, did over the same period. With dividends
reinvested, the same $10,000 would have grown to $23,990 - a 139.90%
increase.
UNDERSTANDING
PERFORMANCE
Many markets around the
globe offer the potential for
significant growth over time;
however, investing in foreign
markets means assuming
greater risks than investing in
the United States. Factors like
changes in a country's financial
markets, its local political and
economic climate, and the
fluctuating value of its currency
create these risks. For these
reasons an international fund's
performance may be more
volatile than a fund that invests
exclusively in the United
States.
(checkmark)
DIVIDENDS AND YIELD
PERIODS ENDED JUNE 30, 1996 PAST PAST 6 PAST 1
MONTH MONTHS YEAR

Dividends per share 4.48(cents) 27.87(cents) 57.27(cents)

Annualized dividend rate 5.74% 5.79% 5.87%

30-day annualized yield 4.77% - -

DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on the fund's average share price of $9.50
over the past month, $9.66 over the past six months and $9.76 over the past
year, you can compare the fund's income over these three periods.
The 30-day annualized YIELD is a standard formula for all funds based on
the yields of the bonds in the fund, averaged over the past 30 days. This
figure shows you the yield characteristics of the fund's investments at the
end of the period. It also helps you compare funds from different companies
on an equal basis. It does not reflect the cost of hedging and other
currency gains and losses.
FUND TALK: THE MANAGER'S OVERVIEW

NOTE TO SHAREHOLDERS: Effective February 26, 1996, Ian Spreadbury became
responsible for managing the fund's international investments and Christine
Thompson for its U.S. investments. The following is an interview with Ian
Spreadbury on the fund's performance, its international components and its
outlook, and with Christine Thompson on the fund's U.S. investments.
Q. IAN, HOW HAS THE FUND PERFORMED OVER THE PAST SIX MONTHS?
I.S. All things considered, pretty well. For the six months ended June 30,
1996, the fund had a return of -1.11%. Global Bond outperformed the Salomon
Brothers World Government Bond Index, Unhedged - which had a return of
- -1.48% for the period - but lagged the general world income funds average,
as tracked by Lipper Analytical Services, which had a six-month return of
1.69%. For the 12-month period ended June 30, 1996, the fund had a return
of 0.26%, while the Salomon Brothers index and the Lipper average posted
returns of 0.37% and 8.67%, respectively.
Q. WHAT FACTORS CONTRIBUTED TO THE FUND'S PERFORMANCE RELATIVE TO THE INDEX
AND THE PEER GROUP?
I.S. It's important to realize that because we manage the fund with an eye
toward the composition of the Salomon Brothers index, we feel the index is
a more accurate comparison than the peer group when tracking Global Bond's
performance. Many funds within the peer group are partly hedged back into
U.S. dollars. This fund, on the other hand, has stopped using this
technique in order to provide a broad foreign currency exposure and to try
to reduce volatility relative to the index. With the dollar being extremely
strong over the past six months, funds with a heavy weighting of
dollar-denominated holdings were able to benefit. Relative to the peer
group, the fund's positions in Japan proved to be detrimental to
performance as well.
Q. IAN, WE UNDERSTAND THERE WERE SOME INVESTMENT POLICY CHANGES . . .
I.S. As of June 24, 1996, the fund reserves the right to invest up to 5%
of its assets - down from 35% - in below-investment-grade securities. The
fund does not intend to seek out the lower-quality, below-investment-grade
bonds. Instead, this change helps the fund maintain a degree of flexibility
under unusual circumstances. Further, the fund now uses two additional
agencies to determine the credit quality of it's bonds. Ratings from Duff &
Phelps Rating Co. and Fitch Investors Service, L.P. may be used, along with
those from Moody's Investors Service and Standard & Poor's which the fund
had been using previously.
Q. YOU MENTIONED JAPAN EARLIER AS HAVING HAD A NEGATIVE IMPACT ON THE
FUND'S PERFORMANCE. WHAT HAPPENED THERE?
I.S. One of our strategies is to try to construct the portfolio in
accordance with the composition of the global bond market and,
correspondingly, the fund's index. Since Japan accounts for a sizable
portion of the global bond market, we have held a similarly large weighting
in yen-denominated bonds. While the bonds themselves produced a positive
return, this was more than offset by the negative impact from the fund's
yen exposure, as the yen weakened considerably during the period.
Q. WERE THERE ANY INTERNATIONAL MARKET TRENDS THAT HAD AN IMPACT ON YOUR
INVESTMENT STRATEGY?
I.S. Because the fund is so diversified across regions and currencies, we
were able to participate in the "convergence trade" in Europe, where yield
spreads tightened between such smaller markets as Sweden, Italy and Spain
compared to the larger markets of Germany and the U.S. This convergence
resulted from the belief that the European Monetary Union (EMU) actually
will happen. In order to take part in the EMU, the Maastricht Treaty set
forth certain economic requirements that a country must fulfill. In rushing
to meet this criteria, we've seen a convergence in economic policy among
many European countries as well as a convergence in yields. This has
increased the attractiveness of smaller country bonds and is happening all
over Europe.
Q. HOW WILL THIS FUND REACT WHEN THE DOLLAR IS STRONG? WHEN IT IS WEAK?
I.S. When the U.S. dollar is weak, dollar-based investors in an unhedged,
diversified fund like Global Bond tend to benefit; that's because nearly
two-thirds of the fund is invested in securities denominated in various
currencies. Conversely, when the dollar is strong, the fund most likely
will underperform for the same reasons. It's important for shareholders to
remember that markets can change dramatically overnight. While the fund may
increase its foreign currency risk exposure by not hedging, these risks are
spread across a diverse range of currencies.
Q. CHRIS, CAN YOU CHARACTERIZE THE U.S. BOND MARKET ENVIRONMENT AND YOUR
STRATEGY DURING THE PERIOD?
C.T. Of the major regions monitored by the fund's Salomon Brothers index,
the U.S. return was the poorest as strong U.S. economic growth raised
concerns of inflation. In addition, bond prices dropped as market sentiment
shifted from uncertainty over whether the Federal Reserve Board would ease
or tighten rates to the expectation that the federal funds rate will be
increased. In managing the U.S. portion of the fund, I try to take
advantage of relative price changes within the investment-grade bond
market. I've increased the fund's corporate and mortgage-related holdings
as I feel these sectors offer the potential to outperform Treasury
securities in the coming period.
Q. TURNING BACK TO YOU, IAN, WHAT'S YOUR OUTLOOK?
I.S. Real yields should continue to offer value; however, with the U.S.
economy going so well and the upbeat employment information released toward
the end of the period, there is a concern of an uptick in inflation. On
balance, we would expect bonds to continue to trade in a fairly narrow
range. Some regions will continue to offer good value, but we're not too
optimistic about Japan, given the low level of yields. As with any global
portfolio, political and economic factors can affect the fund, and the
performance of the dollar versus other currencies will also affect
performance.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGERS
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGERS' VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.

FUND FACTS
GOAL: high total return by
investing in
investment-grade debt
securities from around the
world
START DATE: December 30,
1986
SIZE: as of June 30, 1996
more than $132 million
MANAGER: Ian Spreadbury,
since February 1996; joined
Fidelity in 1995; Christine
Thompson, since February
1996; also manager, Fidelity
U.S. Bond Index Fund, since
1990; Fidelity Intermediate
Bond Fund, since 1995;
Fidelity Target Timeline
Funds, since 1996; joined
Fidelity in 1985
(checkmark)
IAN SPREADBURY ON CURRENCY
HEDGING:
"An example may help
illustrate the mechanics of
currency hedging. If you're a
dollar-denominated investor
and you wish to invest in
Germany, you have to use
deutsche marks to buy those
bonds. The deutsche marks
give you foreign currency
exposure, meaning that the
currency could rise or fall in
value relative to the dollar. To
neutralize this exposure, the
fund would sell the deutsche
marks through forward
currency contracts, effectively
nullifying this exposure. The
fund no longer engages in this
practice; thus it will tend to
outperform its peers when the
dollar is weak and
underperform when the dollar
is strong. Following this new
strategy reflects our
realization of the difficulty in
predicting currency or interest
rate movements on a
consistent basis. Too many
things - be they economic or
political in nature - can
happen to quickly change
investor perception."
INVESTMENT CHANGES

The charts below highlight three different aspects of the fund's
investments: the country where they were issued, their sensitivity to
interest rate changes, and their currency exposure. The top countries in
each table differ because some securities have more interest rate risk than
others, and because securities issued in one country may be denominated in
another country's currency.
TOP COUNTRIES AS OF JUNE 30, 1996
(EXCLUDING REPURCHASE AGREEMENTS) % OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
SIX MONTHS AGO

United States 33 32

Germany 16 17

France 8 7

United Kingdom 6 6

Japan 5 0

TOP COUNTRIES ARE BASED ON THE LOCATION OF THE ISSUER OF EACH SECURITY,
INDICATING WHERE THE FUND IS EXPOSED TO POLITICAL AND CREDIT RISKS.
PERCENTAGES ARE ADJUSTED FOR THE EFFECT OF OPEN FUTURES CONTRACTS, IF
APPLICABLE.
TOP INTEREST RATE EXPOSURES AS OF JUNE 30, 1996
(ESTIMATED, BY COUNTRY) % OF FUND'S % OF INTEREST
TOTAL INTEREST RATE EXPOSURE
RATE EXPOSURE SIX MONTHS AGO

United States 33 34

Japan 22 18

Germany 10 9

France 8 7

United Kingdom 7 6

FIDELITY ESTIMATES INTEREST-RATE EXPOSURES BASED ON THE DURATION, OR
INTEREST RATE SENSITIVITY, OF THE FUND'S HOLDINGS. AS OF JUNE 30, 1996, THE
FUND WAS MOST SENSITIVE TO INTEREST RATE MOVEMENTS IN THE U.S., WHICH
ACCOUNT FOR APPROXIMATELY 33% OF THE FUND'S INTEREST RATE EXPOSURE.
TOP CURRENCY EXPOSURES AS OF JUNE 30, 1996
(ESTIMATED, BY CURRENCY) % OF FUND'S % OF NET ASSETS
NET ASSETS SIX MONTHS AGO

U.S. dollar 32 34

Japanese yen 19 19

German deutsche mark 11 11

French franc 7 7

Italian lira 6 6

THE JAPANESE YEN, AT APPROXIMATELY 19% OF NET ASSETS, WAS THE FUND'S
LARGEST FOREIGN CURRENCY EXPOSURE AS OF JUNE 30, 1996.
INVESTMENTS JUNE 30, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

CORPORATE BONDS - 28.9%
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (A) (NOTE 1)
AUSTRALIA - 1.0%
Queensland Treasury Corp.:
8%, 8/14/01 Aaa AUD 1,390,000 $ 1,066,231
8%, 5/14/03 Aaa AUD 350,000 264,064
1,330,295
CANADA - 1.1%
British Columbia Hydro & Power Authority
yankee 12 1/2%, 1/15/14 Aa2 140,000 163,474
Ford Credit Ltd. 8 3/4%, 3/20/00 A1 CAD 1,000,000 764,914
Methanex Corp. 8 7/8%, 11/15/01 A3 480,000 516,125
1,444,513
FINLAND - 0.3%
Merita Bank Ltd. yankee 6 1/2%, 1/15/06 A3 350,000 325,374
GERMANY - 6.0%
Deutsche Bank Finance NV 4 1/8%, 11/15/99 Aaa JPY 375,000,000 3,645,572
Lake Baden Wuerttemberg Finance NV
euro 3 3/4%, 6/21/99 Aaa JPY 300,000,000 2,887,745
Treuhandanstalt 6 5/8%, 7/9/03 AAA DEM 1,750,000 1,175,123
7,708,440
JAPAN - 5.2%
Export-Import Bank of Japan euro
2 7/8%, 7/28/05 Aaa JPY 750,000,000 6,682,695
KOREA (SOUTH) - 0.3%
Korea Development Bank:
9.29%, 3/13/98 A1 120,000 125,478
9 1/4%, 6/15/98 A1 150,000 156,936
yankee 7%, 7/15/99 A1 150,000 150,720
433,134
NETHERLANDS - 0.3%
Ford Capital BV:
yankee 9 3/8%, 1/1/98 A1 100,000 104,193
gtd. 9%, 8/15/98 A1 250,000 261,968
366,161
CORPORATE BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (A) (NOTE 1)
UNITED KINGDOM - 2.2%
Ford Credit Europe PLC:
euro 8 5/8%, 11/21/97 A1 GBP 200,000 $ 317,844
11.70%, 11/18/98 (b) A1 ITL 1,185,000 820,237
Lloyds Bank PLC 7 3/8%, 3/11/04 Aa3 GBP 500,000 727,509
Midland Bank PLC yankee 7 5/8%, 6/15/06 A1 120,000 121,577
Rolls-Royce PLC 11 5/8, 7/30/98 A3 GBP 250,000 422,239
Severn Trent PLC 11 1/2%, 7/12/99 A1 GBP 235,000 405,387
2,814,793
UNITED STATES OF AMERICA - 12.5%
AMR Corp. 7 3/4%, 12/1/97 Baa3 200,000 203,168
Aristar, Inc. 7 1/2%, 7/1/99 Baa1 250,000 255,243
Bank of Boston Corp. 9 1/2%, 8/15/97 Baa1 320,000 330,998
Banponce Financial Corp. 6.34%, 3/29/99 Baa1 70,000 69,138
Banponce Corp.:
5 3/4%, 3/1/99 Baa1 130,000 126,494
6.378%, 4/8/99 Baa1 120,000 118,325
Columbia Gas System, Inc. 6.61%, 11/28/02 Baa3 130,000 126,684
Comdisco, Inc.:
6 1/2%, 6/15/00 Baa2 600,000 591,792
5 3/4%, 2/15/01 Baa2 200,000 190,948
Enron Corp.:
10%, 6/1/98 Baa2 100,000 105,566
8 1/2%, 2/1/00 Baa2 90,000 91,254
First Fidelity Bancorporation:
8 1/2%, 4/1/98 A2 240,000 247,759
9 5/8%, 8/15/99 A2 40,000 43,112
First Hawaiian, Inc. 6 1/4%, 8/15/00 Baa1 270,000 262,386
First Tennessee National Corp.
6 3/4%, 11/15/05 Baa1 100,000 95,019
Firstar Corp. 7.15%, 9/1/00 A3 320,000 321,616
Fleet Financial Group, Inc. 7 5/8%, 12/1/99 A3 40,000 40,704
Ford Credit Grantor Trust 5.90%, 10/15/00 Aaa 604,733 602,088
General Electric Capital Corp.:
6 1/2%, 2/8/99 Aaa SEK 3,750,000 561,558
7 3/8%, 2/8/99 (b) Aaa ITL 2,150,000 1,378,242
Golden West Financial Corp. 9.15%, 5/23/98 A3 150,000 156,735
Green Tree Financial Corp.:
6.45%, 5/15/27 Aaa 160,000 158,339
6.65%, 7/15/27 Aaa 180,000 180,562
CORPORATE BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (A) (NOTE 1)
UNITED STATES OF AMERICA - CONTINUED
Green Tree Securitized Net Interest Margin Trust,
Series 1994-A, 6.90%, 2/15/04 Baa3 $ 130,859 $ 129,591
InterNorth, Inc. 9 5/8%, 3/15/06 Baa2 230,000 264,068
KFW International Finance, Inc. euro
6%, 11/29/99 Aaa JPY 220,000,000 2,269,085
Kansallis-Osake-Pankki 10%, 5/1/02 A3 100,000 112,807
MBNA Master Credit Card Trust
7 1/4%, 6/15/99 Aaa 390,000 393,413
MCN Investment Corp.:
5.84%, 2/1/99 Baa2 210,000 206,214
6.03%, 2/1/01 Baa2 280,000 270,026
Manufacturers Hanover Corp.
8 1/2%, 2/15/99 A2 130,000 135,772
Morgan Guaranty Trust Co.
11 3/8%, 10/6/97 (b) Aa1 ITL 3,200,000 2,153,485
Occidental Petroleum Corp.:
9.20%, 8/15/97 Baa3 190,000 196,124
5.85%, 11/9/98 Baa3 90,000 88,432
5.93%, 11/9/98 Baa3 130,000 127,959
6 3/4%, 9/16/99 Baa3 120,000 119,759
6.09%, 11/29/99 Baa3 150,000 146,622
Premier Auto Trust 6%, 5/6/00 Aaa 110,000 109,347
Provident Bank 6 1/8%, 12/15/00 A3 510,000 491,650
Quaker Oats Co.:
6.91%, 5/15/03 A3 80,000 79,010
9 1/8%, 7/15/04 A3 30,000 33,458
7.51%, 5/2/05 A3 80,000 80,938
7.30%, 8/29/05 A3 80,000 78,850
Ralcorp Holdings, Inc. 8 3/4%, 9/15/04 Ba1 155,000 158,038
Shawmut National Corp. 8 5/8%, 12/15/99 A3 290,000 304,633
Southwest Gas Corp., Series F,
9 3/4%, 6/15/02 Baa3 90,000 100,431
Standard Credit Card Master Trust I:
6 1/4%, 9/7/98 A2 650,000 649,695
participation certificates 5 1/2%, 9/7/98 A2 85,000 84,203
Tenneco Credit Corp. 10.05%, 8/17/98 Baa2 330,000 352,113
360 Degrees Communications Co.
7 1/8%, 3/1/03 Ba2 200,000 191,252
CORPORATE BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (A) (NOTE 1)
UNITED STATES OF AMERICA - CONTINUED
Union Planters Corp. 6 3/4%, 11/1/05 Baa3 $ 200,000 $ 189,806
WFS Financial Owner Trust 7.05%, 11/20/03 Aaa 270,000 270,338
16,044,849
TOTAL CORPORATE BONDS
(Cost $37,516,515) 37,150,254
U.S. GOVERNMENT AGENCY - MORTGAGE-BACKED SECURITIES - 2.1%
FEDERAL HOME LOAN GUARANTY CORPORATION - 0.1%
7%, 2/1/98 to 6/1/01 Aaa 151,100 151,714
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 2.0%
6%, 4/1/11 Aaa 1,672,625 1,581,668
6 1/2%, 4/1/26 Aaa 1,070,631 1,001,372
2,583,040
TOTAL U.S. GOVERNMENT AGENCY -
MORTGAGE-BACKED SECURITIES
(Cost $2,682,264) 2,734,754
COMMERCIAL MORTGAGE SECURITIES - 0.6%
Resolution Trust Corp. commercial Series 1995-C2
Class A-1B, 6 1/4%, 5/25/27 Aaa 190,000 184,570
Structured Asset Securities Corp. commercial:
Series 1995-C4 Class A-1A, 6.90%, 6/25/26 AAA 193,166 191,476
Series 1996 Class A-1A, 5.711%, 2/25/28 AAA 206,308 204,245
Series 1996 Class A-1B, 5.751%, 2/25/28 AAA 166,000 162,421
TOTAL COMMERCIAL MORTGAGE SECURITIES
(Cost $755,917) 742,712
GOVERNMENT OBLIGATIONS (F) - 61.8%
ARGENTINA - 2.3%
Province of Chaco, Argentina
11 7/8%, 9/10/97 (e) - 2,700,000 2,906,285
AUSTRIA - 3.6%
Republic of Austria euro:
11%, 12/16/97 (b) Aaa ITL 1,700,000 1,144,593
4 1/2%, 9/28/05 Aaa JPY 340,000,000 3,423,089
4,567,682
GOVERNMENT OBLIGATIONS (F) - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (A) (NOTE 1)
BELGIUM - 2.6%
Kingdom of Belgium:
8 3/4%, 6/25/02 AAA BEF 15,000,000 $ 544,094
5.10%, 11/21/04 (d) AAA BEF 50,000,000 1,626,142
7 1/2%, 7/29/08 AAA BEF 35,000,000 1,157,161
3,327,397
CANADA - 2.6%
Canadian Government:
8 1/2%, 3/1/00 Aa1 CAD 500,000 387,408
8 1/2%, 4/1/02 Aa1 CAD 1,450,000 1,129,332
7 1/2%, 12/1/03 Aa1 CAD 1,410,000 1,032,514
7%, 12/1/06 Aa1 CAD 1,200,000 836,053
3,385,307
DENMARK - 1.8%
Kingdom of Denmark:
Bullet:
9%, 11/15/00 Aaa DKK 3,250,000 613,660
8%, 5/15/03 Aaa DKK 2,700,000 486,826
9%, 11/15/98 Aaa DKK 2,500,000 461,533
8%, 3/15/06 Aaa DKK 4,000,000 707,537
2,269,556
FRANCE - 7.6%
French Government:
OAT:
9.70%, 12/13/97 Aaa FRF 12,250,000 2,549,331
9 1/2%, 1/25/01 Aaa FRF 15,500,000 3,476,450
5 1/2%, 4/25/04 Aaa FRF 3,000,000 552,978
8 1/2%, 12/26/12 Aaa FRF 14,000,000 3,141,377
9,720,136
GERMANY - 10.0%
Federal Republic of Germany:
6 1/8%, 3/20/98 Aaa DEM 5,250,000 3,554,641
8 3/8%, 5/21/01 Aaa DEM 4,650,000 3,409,492
8%, 1/21/02 Aaa DEM 7,000,000 5,063,693
6%, 6/20/16 Aaa DEM 1,500,000 873,434
12,901,260
GOVERNMENT OBLIGATIONS (F) - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (A) (NOTE 1)
IRELAND - 0.0%
Republic of Ireland 7.64%, 1/2/02 Aa2 $ 60,000 $ 61,813
ITALY - 2.4%
Republic of Italy 10 1/2%, 9/1/05 (b) A1 ITL 4,400,000 3,088,602
NETHERLANDS - 3.9%
Netherland Government:
6 3/4%, 2/15/99 AAA NLG 3,000,000 1,847,868
7%, 6/15/05 AAA NLG 2,500,000 1,524,244
8 1/4%, 2/15/07 AAA NLG 2,500,000 1,647,950
5,020,062
SPAIN - 2.4%
Kingdom of Spain:
11.45%, 8/30/98 AAA ESP 120,000,000 1,007,871
10.90%, 8/30/03 AAA ESP 200,000,000 1,748,430
10 1/2%, 10/30/03 AAA ESP 35,000,000 300,433
3,056,734
SWEDEN - 1.2%
Kingdom of Sweden 10 1/4%, 5/5/03 Aa1 SEK 9,300,000 1,573,269
UNITED KINGDOM - 4.0%
United Kingdom, Great Britain & Northern Ireland:
10 1/2%, 2/21/97 Aaa GBP 250,000 399,365
9 3/4%, 8/27/02 Aaa GBP 450,000 773,871
13 1/2, 3/26/08 Aaa GBP 850,000 1,742,461
9%, 10/13/08 Aaa GBP 500,000 835,601
8 3/4%, 8/25/17 Aaa GBP 900,000 1,466,098
5,217,396
UNITED STATES OF AMERICA - 17.4%
Farm Credit System Financial Assistance Corp.,
Series A, 9 3/8%, 7/21/03 Aaa 370,000 422,203
Federal Farm Credit Bank:
6.56%, 8/5/02 Aaa 140,000 138,666
6.20%, 9/23/02 Aaa 210,000 204,454
8.06%, 1/4/05 Aaa 1,000,000 1,067,060
Federal Home Loan Bank:
7.70%, 9/20/04 Aaa 460,000 481,634
7.59%, 3/10/05 Aaa 200,000 208,156
Federal Home Loan Mortgage Corp.
6.55%, 1/4/00 Aaa 230,000 230,000
GOVERNMENT OBLIGATIONS (F) - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (A) (NOTE 1)
UNITED STATES OF AMERICA - CONTINUED
Government Trust Certificates:
(assets of Trust guaranteed by U.S. Government
through Defense Security Assistance Agency):
Class 1-C 9 1/4%, 11/15/01 Aaa $ 598,000 $ 638,694
Class 2-E 9.40%, 5/15/02 Aaa 730,000 782,648
(assets of Trust guaranteed by U.S. Government
through Export-Import Bank):
Series 1993-C, 5.20%, 10/15/04 Aaa 71,022 67,116
Series 1993-D, 5.23%, 5/15/05 Aaa 122,553 115,430
Series 1994-A, 7.12%, 4/15/06 Aaa 132,933 134,013
Series 1994-A, 7.39%, 6/26/06 Aaa 33,333 34,019
Series 1994-C, 6.61%, 9/15/99 Aaa 44,623 44,833
Series 1994-F, 8.187%, 12/15/04 Aaa 198,965 208,050
Israel Export Trust Certificate Series 1994-1
(assets of Trust guaranteed by U.S.
Government through Export-Import Bank):
6.88%, 1/26/03 Aaa 140,000 140,438
6 1/8%, 3/15/03 Aaa 162,000 155,850
Overseas Private Investment Corp. (U.S.
Government guaranteed participation
certificates) Series 1994-195,
6.08%, 8/15/04 Aaa 230,000 219,441
Private Export Funding Corp. secured:
Series SS, 5.80%, 2/1/04 Aaa 160,000 153,286
6.90%, 1/31/03 Aaa 100,000 100,367
8 3/4%, 6/30/03 Aaa 880,000 971,291
State of Israel (guaranteed by U.S. Government
through Agency for International
Development) 8%, 11/15/01 Aaa 740,000 781,351
U.S. Treasury:
8 7/8%, 11/15/97 Aaa 1,000,000 1,037,340
9 1/4%, 8/15/98 Aaa 1,670,000 1,770,467
8 7/8%, 2/15/99 Aaa 220,000 233,715
7 3/4%, 12/31/99 Aaa 2,404,000 2,504,655
6 7/8%, 3/31/00 Aaa 259,000 262,763
11 7/8%, 11/15/03 Aaa 560,000 728,347
8 3/4%, 5/15/20 Aaa 7,195,000 8,602,486
22,438,773
TOTAL GOVERNMENT OBLIGATIONS
(Cost $82,071,857) 79,534,272
SUPRANATIONAL OBLIGATIONS - 5.2%
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (A) (NOTE 1)
African Development Bank 7 3/4%, 12/15/01 Aa1 $ 340,000 $ 350,458
InterAmerica Development Bank euro
6%, 10/30/01 Aaa JPY 500,000,000 5,318,810
International Bank Reconstruction &
Development 4 3/4%, 1/15/04 Aaa JPY 100,000,000 1,027,939
TOTAL SUPRANATIONAL OBLIGATIONS
(Cost $8,429,022) 6,697,207
REPURCHASE AGREEMENTS - 1.4%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations), in a joint
trading account at 5.46%, dated
6/28/96 due 7/1/96 $ 1,783,811 1,783,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $133,238,575) $ 128,642,199
CURRENCY ABBREVIATIONS
AUD - Australian dollar
BEF - Belgian franc
CAD - Canadian dollar
DEM - German deutsche mark
DKK - Danish krone
ESP - Spanish peseta
FRF - French franc
GBP - British pound
ITL - Italian lira
JPY - Japanese yen
NLG - Dutch guilder
SEK - Swedish krona
LEGEND
1. Principal amount is stated in United States dollars unless otherwise
noted.
2. Principal amount in thousands.
3. Standard & Poor's credit ratings are used in the absence of a rating by
Moody's Investors Service, Inc.
4. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
5. Restricted securities - Investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on each holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
Province of Chaco,
Argentina 11 7/8%,
9/10/97 3/9/94 $ 2,919,869
6. Some foreign government obligations have not been individually rated by
S&P or Moody's. The ratings listed are assigned to securities by FMR, the
fund's investment adviser, based principally on S&P and Moody's ratings of
the sovereign credit of the issuing government.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows:
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 82.2% AAA, AA, A 89.0%
Baa 3.7% BBB 5.4%
Ba 0.3% BB 0.2%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
For some foreign government obligations, FMR has assigned the ratings of
the sovereign credit of the issuing government. The percentage not rated by
either S&P or Moody's amounted to 2.3% including long-term debt categorized
as other securities.
MARKET SECTOR DIVERSIFICATION
As a Percentage of Total Value of Investment in Securities
Aerospace & Defense 0.3%
Basic Industries 0.4
Commercial Mortgage Securities 0.6
Energy 0.5
Finance 24.5
Government Obligations 63.9
Nondurables 0.3
Repurchase Agreements 1.4
Services 1.0
Supranational Obligations 5.2
Technology 0.6
Transportation 0.2
Utilities 1.1
100.0%
INCOME TAX INFORMATION
At June 30, 1996, the aggregate cost of investment securities for income
tax purposes was $133,240,273. Net unrealized depreciation aggregated
$4,598,074, of which $2,375,691 related to appreciated investment
securities and $6,973,765 related to depreciated investment securities.
At December 31, 1995, the fund had a capital loss carryforward of
approximately $94,677,000 of which $81,883,000 and $12,794,000 will expire
on December 31, 2002 and 2003, respectively.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JUNE 30, 1996 (UNAUDITED)

ASSETS

Investment in securities, at value (including repurchase $ 128,642,199
agreements of $1,783,000) (cost $133,238,575) -
See accompanying schedule

Cash 793

Receivable for investments sold 3,331,734

Interest receivable 3,317,812

TOTAL ASSETS 135,292,538

LIABILITIES

Payable for investments purchased $ 2,338,574

Payable for fund shares redeemed 152,624

Distributions payable 27,621

Accrued management fee 77,688

Other payables and accrued expenses 106,874

TOTAL LIABILITIES 2,703,381

NET ASSETS $ 132,589,157

Net Assets consist of:

Paid in capital $ 237,051,878

Distributions in excess of net investment income (382,771)

Accumulated undistributed net realized gain (loss) on (99,859,526)
investments and foreign currency transactions

Net unrealized appreciation (depreciation) on (4,220,424)
investments and assets and liabilities in foreign
currencies

NET ASSETS, for 13,887,951 shares outstanding $ 132,589,157

NET ASSET VALUE, offering price and redemption price per $9.55
share ($132,589,157 (divided by) 13,887,951 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)

INVESTMENT INCOME $ 6,458,506
Interest

Less foreign taxes withheld (24,015)

TOTAL INCOME 6,434,491

EXPENSES

Management fee $ 581,776

Transfer agent fees 236,127

Accounting fees and expenses 58,490

Non-interested trustees' compensation 368

Custodian fees and expenses 25,635

Registration fees 13,713

Audit 41,221

Legal 384

Interest 5,799

Miscellaneous 4,648

Total expenses before reductions 968,161

Expense reductions (3,222) 964,939

NET INVESTMENT INCOME 5,469,552

REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:

Investment securities (4,850,076)

Foreign currency transactions (165,740) (5,015,816)

Change in net unrealized appreciation (depreciation) on:

Investment securities (2,997,703)

Assets and liabilities in foreign currencies 21,489 (2,976,214)

NET GAIN (LOSS) (7,992,030)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ (2,522,478)
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED JUNE DECEMBER 31,
30,1996 1995
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

Operations $ 5,469,552 $ 15,711,403
Net investment income

Net realized gain (loss) (5,015,816) (4,219,694)

Change in net unrealized appreciation (depreciation) (2,976,214) 1,926,842

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (2,522,478) 13,418,551
FROM OPERATIONS

Distributions to shareholders (4,799,966) (13,319,937)
From net investment income

Return of capital - (1,562,828)

TOTAL DISTRIBUTIONS (4,799,966) (14,882,765)

Share transactions 27,058,577 156,242,005
Net proceeds from sales of shares

Reinvestment of distributions 4,174,035 13,157,522

Cost of shares redeemed (88,182,872) (353,875,967)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (56,950,260) (184,476,440)
FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS (64,272,704) (185,940,654)

NET ASSETS

Beginning of period 196,861,861 382,802,515

End of period (including distributions in excess of net $ 132,589,157 $ 196,861,861
investment income of $382,771 and $1,052,357,
respectively)

OTHER INFORMATION
Shares

Sold 2,795,404 15,810,366

Issued in reinvestment of distributions 432,580 1,337,071

Redeemed (9,152,038) (36,076,255)

Net increase (decrease) (5,924,054) (18,928,818)

</TABLE>

FINANCIAL HIGHLIGHTS SIX MONTHS YEARS ENDED DECEMBER 31, TWO MONTHS YEARS ENDED OCTOBER 31,

ENDED JUNE 30, ENDED

1996 DECEMBER

31,

SELECTED PER-SHARE DATA (UNAUDITED) 1995 1994 G 1993 F 1992 1992 E 1991

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.940 $ 9.880 $ 12.610 $ 11.340 $ 11.830 $ 11.980 $ 12.190

Income from Investment Operations .304 .685 .158 .731 .145 .839 .740
Net investment income

Net realized and unrealized gain (loss) (.415) (.049) (2.178) 1.648 (.173) .110 .520

Total from investment operations (.111) .636 (2.020) 2.379 (.028) .949 1.260

Less Distributions (.279) (.516) (.225) (.629) (.332) (1.099) (1.030)
From net investment income

In excess of net investment income - - (.054) - - - -

From net realized gain - - - (.280) (.130) D - (.440)
D

In excess of net realized gain - - (.020) (.200) - - -

Return of capital - (.060) (.411) - - - -

Total distributions (.279) (.576) (.710) (1.109) (.462) (1.099) (1.470)

Net asset value, end of period $ 9.550 $ 9.940 $ 9.880 $ 12.610 $ 11.340 $ 11.830 $ 11.980

TOTAL RETURN B, C (1.11)% 6.66 (16.31)% 21.91% (.23)% 8.18% 11.31%
%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 132,589 $ 196,862 $ 382,803 $ 686,252 $ 279,204 $ 332,333 $ 160,083

Ratio of expenses to average net assets 1.17% A 1.16 1.14% 1.17% 1.37% 1.23% 1.35%
% A

Ratio of expenses to average net assets
after expense 1.16% A, 1.16 1.14% 1.17% 1.37% 1.23% 1.35%

reductions H % A

Ratio of net investment income to average
net assets 6.58% A 6.19 6.50% 6.79% 6.92% 8.02% 7.92%
% A

Portfolio turnover rate 79% A 322 367% 198% 142% 81% 228%
% A

</TABLE>

A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 6 OF NOTES TO FINANCIAL
STATEMENTS).
D INCLUDES AMOUNTS DISTRIBUTED FROM NET REALIZED GAINS ON FOREIGN CURRENCY
RELATED TRANSACTIONS TAXABLE AS ORDINARY INCOME.
E EFFECTIVE JULY 1, 1992, DIVIDENDS FROM NET INVESTMENT INCOME WERE
DECLARED DAILY AND PAID MONTHLY.
F EFFECTIVE JANUARY 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION 93-2,
"DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF INCOME,
CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS
BY INVESTMENT COMPANIES." AS A RESULT, NET INVESTMENT INCOME PER SHARE MAY
REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
G AMOUNTS HAVE BEEN ADJUSTED TO CONFORM WITH PRESENT PERIOD ACCOUNTING
POLICIES.
H FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES (SEE NOTE 6 OF
NOTES TO FINANCIAL STATEMENTS).
NOTES TO FINANCIAL STATEMENTS
For the period ended June 30, 1996 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Global Bond Fund (the fund) is a fund of Fidelity Investment Trust
(the trust) and is authorized to issue an unlimited number of shares. 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. The financial statements have been prepared
in conformity with generally accepted accounting principles which permit
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. Securities for which quotations are readily available
are valued at the last sale price, or if no sale price, at the closing bid
price in the principal market in which such securities are normally traded.
Securities (including restricted securities) for which quotations are not
readily available are valued primarily using dealer-supplied valuations or
at their fair value as determined in good faith under consistently applied
procedures under the general supervision of the Board of Trustees.
Short-term securities maturing within sixty days of their purchase date are
valued at amortized cost or original cost plus accrued interest, both of
which approximate current value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Purchases and
sales of securities, income receipts, and expense payments are translated
into U.S. dollars at the prevailing exchange rate on the respective dates
of the transactions.
Net realized gains and losses on foreign currency transactions represent
net gains and losses from sales and maturities of forward currency
contracts, disposition of foreign currencies, currency gains and losses
realized between the trade and settlement dates on securities transactions,
and the difference between the amount of net investment income accrued and
the U.S. dollar amount actually received. The effects of changes in foreign
currency exchange rates on investments in securities are included with the
net realized and unrealized gain or loss on investment securities.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to U.S. federal
income taxes to the extent that it distributes substantially all of its
taxable income for its fiscal year. The fund may be subject to foreign
taxes on income, gains on investments or
currency repatriation. The fund accrues such taxes as applicable. The
schedule of investments includes information
regarding income taxes under the caption "Income Tax Information."
INVESTMENT INCOME. Interest income, which includes accretion of original
issue discount, is accrued as earned. Interest income is recorded net of
foreign taxes withheld where recovery of such taxes is uncertain.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are declared daily and paid
monthly from net investment income. Distributions from realized gains, if
any, 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. These differences, which may result in distribution
reclassifications, are primarily due to differing treatments for foreign
currency transactions, market discount, capital loss carryforwards and
losses deferred due to wash sales and excise tax regulations.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect the per-share allocation between net investment income and realized
and unrealized gain (loss). Distributions in excess of net investment
income and accumulated undistributed net realized gain (loss) on
investments and foreign currency transactions may include temporary book
and tax basis differences that will reverse in a subsequent period. Any
taxable income or gain remaining at fiscal year end is distributed in the
following year.
For the period ended December 31, 1995, the fund's distributions exceeded
the aggregate amount of taxable income and net realized gains resulting in
a return of capital. This was due to certain foreign currency losses which
decreased taxable income available for distribution after certain
distributions had been made.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
FORWARD FOREIGN CURRENCY CONTRACTS. The fund may use foreign currency
contracts to facilitate transactions in foreign securities and to manage
the fund's currency exposure. Contracts to buy generally are used to
acquire exposure to foreign currencies, while contracts to sell are used to
hedge the fund's investments against currency fluctuations. Also, a
contract to buy or sell can offset a previous contract. Losses may arise
from changes in the value of the foreign currency or if the counterparties
do not perform under the contracts' terms.
The U.S. dollar value of forward foreign currency contracts is determined
using forward currency exchange rates supplied by a quotation service.
Purchases and sales of forward foreign currency contracts having the same
settlement date and broker are offset and any realized gain (loss) is
recognized on the date of offset; otherwise, gain (loss) is recognized on
settlement date.
2. OPERATING POLICIES - CONTINUED
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other affiliated
entities of Fidelity Management & Research Company (FMR), may transfer
uninvested cash balances into one or more joint trading accounts. These
balances are invested in one or more repurchase agreements that mature in
60 days or less from the date of purchase for U.S. Treasury or Federal
Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
Securities are transferred to an account of the fund, or to the Joint
Trading Account, at a bank custodian. The securities are marked-to-market
daily and maintained at a value at least equal to the principal amount of
the repurchase agreement (including accrued interest). FMR, the fund's
investment adviser, is responsible for determining that the value of the
underlying securities remains in accordance with the market value
requirements stated above.
RESTRICTED SECURITIES. The fund is permitted to 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. At the end of the period,
restricted securities (excluding 144A issues) amounted to $2,906,285 or
2.2% of net assets.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $62,489,306 and $118,541,066, respectively, of which U.S.
government and government agency obligations aggregated $31,137,628 and
$45,222,767, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly
fee that is calculated on the basis of a group fee rate plus a fixed
individual fund fee rate applied to the average net assets of the fund. The
group fee rate is the weighted average of a series of rates and is based on
the monthly average net assets of all the mutual funds advised by FMR. The
rates ranged from .1100% to .3700% for the period. In the event that these
rates were lower than the contractual rates in effect during the period,
FMR voluntarily implemented the above rates, as they resulted in the same
or a lower management fee. The annual individual fund fee rate is .55%. For
the period, the management fee was equivalent to an annualized rate of .70%
of average net assets.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
SUB-ADVISER FEE. FMR, on behalf of the fund, entered into sub-advisory
agreements with Fidelity Management & Research (U.K.) Inc., Fidelity
Management & Research Far East Inc., and Fidelity International Investment
Advisors (FIIA). In addition, FIIA entered into a sub-advisory agreement
with its subsidiary, Fidelity International Investment Advisors (U.K.)
Limited (FIIAL U.K.). Under the sub-advisory arrangements, FMR may receive
investment advice and research services and may grant the sub-advisers
investment management authority to buy and sell securities. FMR pays its
sub-advisers either a portion of its management fee or a fee based on costs
incurred for these services. FIIA pays FIIAL U.K. a fee based on costs
incurred for either service.
TRANSFER AGENT FEES. Fidelity Service Co. (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 all shareholder reports, except proxy statements. For the
period, the transfer agent fees were equivalent to an annualized rate of
.28% of average net assets.
ACCOUNTING FEES. FSC maintains the fund's accounting records. The fee is
based on the level of average net assets for the month plus out-of-pocket
expenses.
5. BANK BORROWINGS.
The fund is permitted to have bank borrowings for temporary or emergency
purposes to fund shareholder redemptions. The fund has established
borrowing arrangements with certain banks. Under the most restrictive
arrangement, the fund must pledge to the bank securities having a market
value in excess of 220% of the total bank borrowings. The interest rate on
the borrowings is the bank's base rate, as revised from time to time. The
maximum loan and the average daily loan balances during the period for
which loans were outstanding amounted to $7,136,000 and $6,179,167,
respectively. The weighted average interest rate was 5.63%.
6. EXPENSE REDUCTIONS.
The fund has entered into arrangements with its custodian and transfer
agent whereby interest earned on uninvested cash balances was used to
offset a portion of the fund's expenses. During the period, the fund's
custodian and transfer agent fees were reduced by $1,535 and $1,687,
respectively, under these arrangements.
7. LITIGATION.
The fund is engaged in litigation against the obligor on the inflation
adjusted debt of Siderurgica Brasileiras SA, contesting the calculation of
the principal adjustment. As of period end, the fund no longer holds
Siderurgica Brasileiras SA debt securities. The probability of success of
this litigation cannot be predicted and the amount of recovery cannot be
estimated. Any recovery from this litigation would inure to the benefit of
the fund.
TO CALL FIDELITY

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you would ever like to change your PIN, just choose the "Change your
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you call. If you forget your PIN, please
call a Fidelity representative at 1-800-
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AND CAPITAL GAINS, AND THE EFFECTS OF ANY SALES CHARGES.
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INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
INVESTMENT SUB-ADVISERS
Fidelity Management & Research
(U.K.) Inc., London, England
Fidelity Management & Research
(Far East) Inc., Tokyo, Japan
Fidelity International Investment
Advisors
Fidelity International Investment
Advisors (U.K.) Ltd.
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Fred L. Henning, Jr., Vice President
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
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William O. McCoy
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The Chase Manhattan Bank
New York, NY
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(2_FIDELITY_LOGOS)FIDELITY

NEW MARKETS INCOME
FUND
SEMIANNUAL REPORT
JUNE 30, 1996
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

FUND TALK 7 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 10 A summary of major shifts in the
fund's investments over the past six
months.

INVESTMENTS 11 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 17 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 21 Notes to the financial statements.

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. A fund's total
return includes changes in a fund's share price, plus reinvestment of any
dividends (or income) and capital gains (the profits the fund earns when it
sells securities that have grown in value). You can also look at the fund's
income to measure performance. If Fidelity had not reimbursed certain
expenses, the life of fund total returns would have been lower.
CUMULATIVE TOTAL RETURNS
<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED JUNE 30, 1996 PAST 6 PAST 1 LIFE OF
MONTHS YEAR FUND

New Markets Income 13.95% 33.73% 42.55%

J.P. Morgan Emerging Markets Bond Index Plus 15.47% 33.84% n/a

Emerging Markets Debt Funds Average 15.16% 33.18% n/a
</TABLE>
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, or since the fund
started on May 4, 1993. For example, if you invested $1,000 in a fund that
had a 5% return over the past year, the value of your investment would be
$1,050. You can compare the fund's returns to those of the J.P. Morgan
Emerging Markets Bond Index Plus - a market-capitalization weighted total
return index which includes U.S. dollar- and other external
currency-denominated Brady bonds, loans and Eurobonds, and local market
debt instruments traded in emerging markets. To measure how the fund's
performance stacked up against its peers, you can compare it to the
emerging markets debt funds average, which reflects the performance of 16
mutual funds with similar objectives tracked by Lipper Analytical Services,
Inc. over the past six months. Both benchmarks include reinvested dividends
and capital gains, if any.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JUNE 30, 1996 PAST 1 LIFE OF
YEAR FUND

New Markets Income 33.73% 11.86%

J.P. Morgan Emerging Markets Bond Index Plus 33.84% n/a

Emerging Markets Debt Funds Average 33.18% n/a

$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity New Markets Income Fund on May 4, 1993, when the fund
started. As the chart shows, by June 30, 1996, the value of the investment
would have grown to $14,255 - a 42.55% increase on the initial investment.
For comparison, look at how the J.P. Morgan Emerging Markets Bond Index, a
market-capitalization weighted total return index which includes U.S.
dollar-denominated sovereign restructured debt issues, did over the same
period. With dividends and capital gains, if any, reinvested, the same
$10,000 would have grown to $15,409 - a 54.09% increase. (Data for the
fund's comparative index, the J.P. Morgan Emerging Markets Bond Index Plus,
is available only from December 31, 1993. Data for a related index is
therefore more suitable for this comparison.)
UNDERSTANDING
PERFORMANCE
Many markets around the
globe offer the potential for
significant growth over time;
however, investing in foreign
markets means assuming
greater risks than investing in the
United States. Factors like
changes in a country's financial
markets, its local political and
economic climate, and the
fluctuating value of its currency
create these risks. For these
reasons an international fund's
performance may be more
volatile than a fund that invests
exclusively in the United
States.
(checkmark)
DIVIDENDS AND YIELD
PERIODS ENDED JUNE 30, 1996 PAST PAST 6 PAST 1
MONTH MONTHS YEAR

Dividends per share 6.67(cents) 42.15(cents) 94.93(cents)

Annualized dividend rate 7.63% 8.15% 9.66%

30-day annualized yield 9.58% - -

DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on an average share price of $10.64 over
the past month, $10.37 over the past six months and $9.83 over the past
year, you can compare the fund's income over these three periods.
The 30-day annualized YIELD is a standard formula for all bond funds based
on the yields of the bonds in the fund, averaged over the past 30 days.
This figure shows you the yield characteristics of the fund's investments
at the end of the period. It also helps you compare funds from different
companies on an equal basis. It does not reflect the cost of hedging and
other currency gains and losses.
FUND TALK: THE MANAGER'S OVERVIEW

An interview with John Carlson, Portfolio Manager of Fidelity New Markets
Income Fund
Q. HOW DID THE FUND PERFORM, JOHN?
A. For the six months ended June 30, 1996, the fund returned 13.95%. That
compares to a total return of 15.47% for the J.P. Morgan Emerging Markets
Bond Index Plus over the same period, and 15.16% for the emerging markets
debt funds average, according to Lipper Analytical Services. For the 12
months ended June 30, 1996, the fund returned 33.73%, while the index had a
total return of 33.84% and the Lipper average returned 33.18%.
Q. THE EMERGING DEBT MARKET RALLIED STRONGLY LATE LAST YEAR. HOW WAS IT
ABLE TO SUSTAIN THAT STRENGTH IN THE FIRST HALF OF 1996?
A. I think that a couple of factors helped to set the stage for a
continuation of the rally. First, the dealer community wasn't holding much
emerging market debt coming into the period, and spreads remained
attractive relative to U.S. Treasuries even after the initial phase of the
rally. There was also the perception that much new money was poised to
enter the market. These factors, combined with the fact that the rally was
touched off by good economic news coming out of Latin America, put some of
the other emerging areas in position to fuel the rally's next stage. That's
what we saw in the first quarter, as investment performance in countries
such as Ecuador, Bulgaria, Nigeria and Venezuela caught up to the major
Latin American nations. Additionally, just as the rally appeared to be
losing steam, Moody's Investors Service re-rated all Brady bonds - which
had been rated a notch below the issuing country's Eurobond external debt -
up to the level of the sovereign issuer. This made Poland the first country
to have its Brady bonds rated as investment-grade, and gave the entire
market a lift. Another boost to the market was provided by rumors that
Russia planned an issuance of Eurobonds prior to the first round of its
presidential elections, even though the country didn't proceed with the
issuance.
Q. HOW DID THE RISE IN INTEREST RATES IN THE U.S. AFFECT THE EMERGING DEBT
MARKET?
A. Well, it certainly provided a breather for the rally and, in fact, gave
investors a chance to step back and consider the global backdrop of the
rate environment. As they did, there was a move toward two areas in
particular: pre-Brady, non-performing loans and floating-rate Eastern
Europe debt. The fund was able to take advantage of both of these areas
during the period.
Q. ALTHOUGH THE FUND'S HEAVIEST WEIGHTINGS ARE STILL IN BRAZIL AND
ARGENTINA, THOSE TWO COUNTRIES TRADED POSITIONS DURING THE PERIOD. WHY DID
BRAZIL OVERTAKE ARGENTINA AS THE FUND'S TOP GEOGRAPHIC AREA?
A. As two of the most developed countries in the market, Brazil and
Argentina have done something of a tango in terms of relative economic
performance and, therefore, in the fund's holdings. Some of it is simply
due to market fluctuations; the Argentinean market is more closely tied to
the U.S. interest-rate environment than Brazil, which relies more heavily
on internal debt financing. The other reason is that Argentina has not had
the growth that many had expected so far this year. Brazil has its own
issues to grapple with, including getting on track toward pension and tax
reform, but the fundamentals of both countries remained strong at the end
of the period.
Q. HOW DID THE FUND'S SMALLER POSITIONS IN AREAS SUCH AS SOUTH AFRICA AND
SOUTHEAST ASIA FARE?
A. Pretty well, in general. We were fortunate to have taken profits in late
1995 and invest further down the yield curve in South Africa in 1996. So we
were relatively well positioned when the South African rand was devalued
early in the year, and its agricultural and mineral exports helped its
economic performance. The fund's investments in countries such as Vietnam
and Indonesia have performed on a fairly stable and predictable basis, and
they've continued to be good areas of diversification for the fund.
Q. WERE THERE ANY DISAPPOINTMENTS OVER THE PERIOD?
A. I'd say that the two biggest ones both took place in the first quarter.
Although we expected Poland's Brady bonds to be upgraded to
investment-grade at some point, I had actually reduced the fund's position
in the country after the communist party won the presidency. I felt that
situation created political uncertainty that would, if anything, delay the
upgrade. In fact, virtually all of the appreciation happened in one day, so
there was no second chance at that particular opportunity. My other regret
was that, even though I recognized the steepness in the emerging market
credit curve that existed at the beginning of the year, I did not invest
more heavily in the high-yield end of the market, especially Bulgaria and
Nigeria, to capture more fully the strong gains in those areas.
Q. SO, JOHN, WHAT'S AHEAD?
A. Even in this event-driven market, it's been an extraordinary 12 months.
We've had to digest the lingering effects of the Mexican peso crisis,
elections in Argentina, Russia and Ecuador, and hard work with the
International Monetary Fund in Venezuela, to name a few. I look for a more
stable political scene globally, which will give the market time to sort
out the fundamental economic issues that remain to be addressed in many
emerging market areas. Given all that, I think there are both absolute and
relative areas of value within the market, and we'll continue to look for
opportunity credit by credit.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.

TOP COUNTRIES AS OF JUNE 30, 1996
(EXCLUDING REPURCHASE AGREEMENTS) % OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Brazil 22.7 19.8

Argentina 20.9 25.1

Venezuela 10.5 4.8

Russia 6.6 4.5

Mexico 6.3 9.6

TOP COUNTRIES ARE BASED ON THE LOCATION OF THE ISSUER OF EACH SECURITY,
INDICATING WHERE THE FUND IS EXPOSED TO POLITICAL AND CREDIT RISKS.
PERCENTAGES ARE ADJUSTED FOR THE EFFECTS OF OPEN FUTURES CONTRACTS, IF ANY.
TOP FIVE FIXED-INCOME SECURITIES AS OF JUNE 30, 1996
<TABLE>
<CAPTION>
<S> <C> <C>
(BY ISSUER, WITH MATURITIES % OF FUND'S % OF FUND'S
OF MORE THAN ONE YEAR) INVESTMENTS INVESTMENTS IN THESE
SECURITIES
6 MONTHS AGO

Federative Republic of Brazil (various 20.0 18.3
issues)

Argentina Republic (various issues) 17.6 22.7

Republic of Venezuela (various issues) 10.5 4.8

Bank for Foreign Economic Affairs of 6.3 4.5
Russia
(Vnesheconombank)

Mexican Government (various issues) 5.2 7.7
</TABLE>
AVERAGE YEARS TO MATURITY AS OF JUNE 30, 1996
6 MONTHS AGO

Years 14.0 13.5

AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM
EACH OF THE FUND'S BONDS, WEIGHTED BY DOLLAR AMOUNT.
ASSET ALLOCATION
AS OF JUNE 30, 1996 AS OF DECEMBER 31, 1995
Corporate bonds 9.7%
Government
obligations 67.7%
Stocks 0.1%
Other 16.3%
Short-term
investments 6.2%
Corporate bonds 7.9%
Government
obligations 67.2%
Stocks 0.0%
Other 13.0%
Short-term
investments 11.9%
Row: 1, Col: 1, Value: 6.2
Row: 1, Col: 2, Value: 16.3
Row: 1, Col: 3, Value: 2.1
Row: 1, Col: 4, Value: 67.7
Row: 1, Col: 5, Value: 9.699999999999999
Row: 1, Col: 1, Value: 11.9
Row: 1, Col: 2, Value: 13.0
Row: 1, Col: 3, Value: 0.0
Row: 1, Col: 4, Value: 67.2
Row: 1, Col: 5, Value: 7.9
INVESTMENTS JUNE 30, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

CORPORATE BONDS - 9.7%
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (A) (NOTE 1)
CONVERTIBLE BONDS - 0.8%
GRAND CAYMAN - 0.4%
Ashanti Capital Ltd. 5 1/2%, 3/15/03 - $ 750,000 $ 700,313
THAILAND - 0.4%
Robinson Department Store PCL (Reg.)
3 1/4%, 7/27/00 - 750,000 817,500
TOTAL CONVERTIBLE BONDS 1,517,813
NONCONVERTIBLE BONDS - 8.9%
ARGENTINA - 3.3%
Alpargatas SA Industrial y Comercial:
euro 10 1/2%, 10/21/96 - 2,000,000 1,985,000
9%, 11/26/96 - 2,620,000 2,583,975
Invergas SA 12 1/2%, 12/16/99 - 1,650,000 1,765,500
6,334,475
BRAZIL - 2.7%
Abril SA:
euro 12%, 10/25/03 - 1,395,000 1,433,363
12%, 10/25/03 (e) - 400,000 411,000
Opp Petroquimica SA 11 1/2%, 2/23/04 (e) - 3,300,000 3,279,375
5,123,738
COLOMBIA - 0.7%
Comunicaciones Celulares SA yankee 0%,
11/15/03 (d) B3 2,090,000 1,243,550
INDONESIA - 1.1%
Matahari International Finance Co. BV
11 1/4%, 3/15/01 (e) BB 2,050,000 2,137,125
MEXICO - 1.1%
Grupo Televisa SA de CV yankee 0%,
5/15/08 (d)(e) Ba3 3,750,000 2,034,375
TOTAL NONCONVERTIBLE BONDS 16,873,263
TOTAL CORPORATE BONDS
(Cost $18,176,754) 18,391,076
GOVERNMENT OBLIGATIONS (G) - 68.6%
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (A) (NOTE 1)
ARGENTINA - 17.6%
Argentina Republic:
BOCON:
3.57%, 4/1/01 (j) BBB ARS 6,070,058 $ 4,778,242
3.57%, 4/1/07 (j) BB- ARS 4,138,674 2,445,144
Brady euro:
6.3125%, 3/31/05 (j) B1 15,741,000 12,277,980
5 1/4%, 3/31/23 (i) B2 25,215,000 13,805,213
33,306,579
BRAZIL - 20.0%
Federative Republic of Brazil:
exit bond 6%, 9/15/13 B1 3,000,000 1,876,875
par 5%, 4/15/24 (i) B1 3,980,000 2,186,513
Brady:
eligible interest 6.50%, 4/15/06 (j) B1 5,125,000 4,103,203
debt conversion bond euro 6.5625%,
4/15/12 (j) B1 14,175,000 9,621,281
capitalization bond 8%, 4/15/14 B1 21,865,086 13,488,025
new money 6.5625%, 4/15/09 (j) B1 9,125,000 6,695,469
37,971,366
BULGARIA - 0.5%
Republic of Bulgaria FLIRB 2%,
7/28/12 (j) - 2,800,000 924,000
ECUADOR - 4.7%
Republic of Ecuador Brady:
past due interest euro 6.0625%, 2/28/15 (j) - 14,005,082 6,232,261
par euro 3 1/4%, 2/28/25 (i) - 5,000,000 1,796,875
discount euro 6.0625%, 2/28/25 (j) - 1,600,000 902,000
8,931,136
MEXICO - 5.2%
Mexico Value recovery rights (a) 12,194,000 122
Mexican Government Brady:
par 6 1/4%, 12/31/19 Ba2 2,270,000 1,466,988
discount 6.4531%, 12/31/19 (j) Ba2 2,300,000 1,804,063
discount 6.3984%, 12/31/19 (j) Ba2 4,150,000 3,255,156
United Mexican States global bond
11 1/2%, 5/15/26 Ba2 3,605,000 3,294,069
9,820,398
GOVERNMENT OBLIGATIONS (G) - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (A) (NOTE 1)
PHILIPPINES - 1.5%
Republic of the Philippines FLIRB
5%, 6/1/08 (j) Ba2 $ 3,250,000 $ 2,912,813
RUSSIA - 6.3%
Bank for Foreign Economic Affairs of Russia
(Vnesheconombank) interest note
0%, 12/31/16 (e)(f) - 22,500,000 12,037,500
SOUTH AFRICA - 1.4%
Republic of South Africa:
12%, 2/28/05 Baa1 ZAR 10,875,000 2,183,994
13%, 8/31/10 Baa1 ZAR 2,600,000 530,660
2,714,654
TURKEY - 0.9%
Republic of Turkey Treasury Bills (h)
0%, 7/10/96 to 8/14/96 - TRL 143,227,500 1,628,398
VENEZUELA - 10.5%
Republic of Venezuela (oil recovery rights) (a) 3,037,000 -
Republic of Venezuela:
par A euro 6.75%, 3/31/20 Ba2 5,150,000 3,154,375
par B euro 6.75%, 3/31/20 Ba3 5,250,000 3,215,625
Brady:
FLIRB A, 7%, 3/31/07 (j) Ba2 4,750,000 3,422,969
FLIRB B, 7%, 3/31/07 (j) Ba2 3,250,000 2,342,031
debt conversion bond 6.625%,
12/18/07 (j) Ba2 10,975,000 7,744,234
19,879,234
TOTAL GOVERNMENT OBLIGATIONS
(Cost $127,169,281) 130,126,078
COMMON STOCKS - 0.1%
SHARES
COLOMBIA - 0.1%
Comunicaciones Celulares SA (warrants) (a)(e)
(Cost $0) 2,090 104,500
INDEXED SECURITIES - 0.8%
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (A) (NOTE 1)
UNITED STATES OF AMERICA - 0.8%
Goldman Sachs Group L.P. 4.87%, 8/20/96
(indexed to Philippine peso)
(Cost $1,520,000) $ 1,520,000 $ 1,547,056
PURCHASED BANK DEBT - 15.2%
IVORY COAST - 2.1%
Ivory Coast Restructured Loans (a) 20,250,000 3,999,375
MOROCCO - 2.9%
Kingdom of Morocco, Series A loan participation
6.4375%, 1/1/09 (j) 7,650,000 5,498,438
PANAMA - 4.9%
Republic of Panama loan participation refinanced
under credit agreement (k) 9,250,000 9,342,500
PERU - 4.6%
Republic of Peru loan participation under
1983 agreement (a) 9,400,000 8,624,500
VIETNAM - 0.7%
Socialist Republic of Vietnam loans restructured
under 1985 agreement (a) DEM 2,400,000 1,353,887
TOTAL PURCHASED BANK DEBT
(Cost $23,016,789) 28,818,700
COMMERCIAL PAPER - 0.4%
INDONESIA - 0.4%
Polysindo Eka Perkasa PT 0%, 11/14/96 (h)
(Cost $799,688) IDR 2,000,000 802,578
REPURCHASE AGREEMENTS - 4.9%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations), in a
joint trading account at 5.46%,
dated 6/28/96 due 7/1/96 $ 9,393,272 9,389,000
PURCHASED OPTIONS - 0.3%
EXPIRATION DATE/ UNDERLYING FACE VALUE
STRIKE PRICE AMOUNT AT VALUE (NOTE 1)
RUSSIA - 0.3%
Chase Manhattan Bank, N.A. Call Option on
$8,000,000 notional amount of Bank for
Foreign Economic Affairs of the U.S.S.R.
(Vnesheconombank) (Cost $370,000) Sept. 96/44 $ 3,870,000 $ 480,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $180,441,512) $ 189,658,988
SECURITY TYPE ABBREVIATIONS
FLIRB - Front Loaded Interest Reduction Bonds
CURRENCY ABBREVIATIONS
ARS - Argentine peso
DEM - German deutsche mark
IDR - Indonesian rupiah
ZAR - South African rand
TRL - Turkish lira
LEGEND
1. Non-income producing
2. Principal amount is stated in United States dollars unless otherwise
noted.
3. Standard & Poor's credit ratings are used in the absence of a rating by
Moody's Investors Service, Inc.
4. Debt obligation initially issued in zero coupon form which converts to
coupon form at a specified rate and date.
5. Security exempt from registration under
Rule 144A of the Securities Act of 1933. These securities may be resold in
transactions exempt from registration, normally to qualified institutional
buyers. At the period end, the value of these securities amounted to
$20,003,875 or 10.4% of net assets.
6. Security purchased on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
7. Some foreign government obligations have not been individually rated by
S&P or Moody's. The ratings listed are assigned to securities by FMR, the
fund's investment adviser, based principally on S&P and Moody's ratings of
the sovereign credit of the issuing government.
8. Principal amount in thousands.
9. Debt obligation initially issued at one coupon which converts to a
higher coupon at a specified date.
10. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
11. Partial interest payment received on the last interest payment date.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 0.0% AAA, AA, A 0.0%
Baa 1.4% BBB 4.0%
Ba 18.3% BB 24.0%
B 34.4% B 31.1%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
For some foreign government obligations, FMR has assigned the ratings of
the sovereign credit of the issuing government.The percentage not rated by
either S&P or Moody's amounted to 33.6% including long-term debt
categorized as other securities. FMR has determined that unrated debt
securities that are lower quality account for 33.6% of the total value of
investment in securities.
INCOME TAX INFORMATION
At June 30, 1996, the aggregate cost of investment securities for income
tax purposes was $180,475,512. Net unrealized appreciation aggregated
$9,183,476 of which $10,482,963 related to appreciated investment
securities and $1,299,487 related to depreciated investment securities.
At December 31,1995, the fund had a capital loss carryforward of
approximately $51,234,000 of which $6,130,000 and $45,104,000 will expire
on December 31, 2002 and 2003, respectively.

MARKET SECTOR DIVERSIFICATION (UNAUDITED)
As a Percentage of Total Value of Investment in Securities
Basic Industries 1.7%
Durables 2.8
Finance 1.5
Government Obligations 68.6
Indexed Securities 0.8
Media & Leisure 2.1
Other 15.2
Purchased Options 0.3
Retail & Wholesale 0.4
Repurchase Agreements 4.9
Utilities 1.7
100.0%
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JUNE 30, 1996 (UNAUDITED)

ASSETS

Investment in securities, at value (including repurchase $ 189,658,988
agreements of $9,389,000) (cost $180,441,512) -
See accompanying schedule

Receivable for investments sold 40,098,812

Receivable for fund shares sold 311,862

Interest receivable 2,726,291

Redemption fees receivable 95

TOTAL ASSETS 232,796,048

LIABILITIES

Payable for investments purchased $ 28,308,423
Regular delivery

Delayed delivery 11,886,750

Distributions payable 95,461

Accrued management fee 107,068

Other payables and accrued expenses 99,969

TOTAL LIABILITIES 40,497,671

NET ASSETS $ 192,298,377

Net Assets consist of:

Paid in capital $ 211,930,402

Undistributed net investment income 5,283,866

Accumulated undistributed net realized gain (loss) on (34,134,071)
investments and foreign currency transactions

Net unrealized appreciation (depreciation) on 9,218,180
investments and assets and liabilities in foreign
currencies

NET ASSETS, for 17,658,439 shares outstanding $ 192,298,377

NET ASSET VALUE, offering price and redemption price per $10.89
share ($192,298,377 (divided by) 17,658,439 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)

INVESTMENT INCOME $ 8,955,184
Interest

Less foreign taxes withheld (2,867)

TOTAL INCOME 8,952,317

EXPENSES

Management fee $ 661,517

Transfer agent fees 178,178

Accounting fees and expenses 71,583

Non-interested trustees' compensation 358

Custodian fees and expenses 61,559

Registration fees 28,900

Audit 44,259

Legal 330

Interest 5,856

Miscellaneous 2,486

Total expenses before reductions 1,055,026

Expense reductions (1,390) 1,053,636

NET INVESTMENT INCOME 7,898,681

REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:

Investment securities 17,460,188

Foreign currency transactions (51,093) 17,409,095

Change in net unrealized appreciation (depreciation) on:

Investment securities (2,857,196)

Assets and liabilities in foreign currencies 3,595 (2,853,601)

NET GAIN (LOSS) 14,555,494

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 22,454,175
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED JUNE DECEMBER 31,
30,1996 1995
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

Operations $ 7,898,681 $ 15,583,912
Net investment income

Net realized gain (loss) 17,409,095 (31,111,821)

Change in net unrealized appreciation (depreciation) (2,853,601) 27,836,979

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 22,454,175 12,309,070
FROM OPERATIONS

Distributions to shareholders (5,016,810) (16,705,028)
From net investment income

In excess of net investment income (2,700,453) -

TOTAL DISTRIBUTIONS (7,717,263) (16,705,028)

Share transactions 87,808,890 196,063,449
Net proceeds from sales of shares

Reinvestment of distributions 6,956,967 15,014,270

Cost of shares redeemed (94,139,450) (209,771,056)

Redemption fees 435,581 474,977

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 1,061,988 1,781,640
FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS 15,798,900 (2,614,318)

NET ASSETS

Beginning of period 176,499,477 179,113,795

End of period (including undistributed net investment $ 192,298,377 $ 176,499,477
income of $5,283,866 and $5,102,448, respectively)

OTHER INFORMATION
Shares

Sold 8,453,021 22,179,711

Issued in reinvestment of distributions 668,384 1,656,239

Redeemed (9,198,655) (23,674,517)

Net increase (decrease) (77,250) 161,433

</TABLE>

FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED DECEMBER MAY 4, 1993
ENDED JUNE 30, 31, (COMMENCEME
1996 NT OF
OPERATIONS) TO
DECEMBER 31,

(UNAUDITED) 1995 1994 1993

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SELECTED PER-SHARE DATA

Net asset value, $ 9.950 $ 10.190 $ 13.070 $ 10.000
beginning of period

Income from Investment Operations .433 1.222 .573 E .486 D
Net investment income

Net realized and unrealized .905 (.583) (2.687) 3.302
gain (loss)

Total from investment operations 1.338 .639 (2.114) 3.788

Less Distributions

From net investment income (.274) (.916) (.529) (.486)

In excess of net investment (.148) - (.057) (.062)
income

From net realized gain - - (.180) (.170)

Total distributions (.422) (.916) (.766) (.718)

Redemption fees added to .024 .037 - -
paid in capital

Net asset value, end of period $ 10.890 $ 9.950 $ 10.190 $ 13.070

TOTAL RETURN B, C 13.95% 7.97% (16.55)% 38.84%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period $ 192,298 $ 176,499 $ 179,114 $ 286,593
(000 omitted)

Ratio of expenses to average 1.12% A 1.17% 1.28% F, 1.24% A,
net assets G G

Ratio of net investment income to 8.37% A 9.51% 5.87% 6.29% A
average net assets

Portfolio turnover rate 469% A 306% 409% 324% A

</TABLE>

A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 6 OF NOTES TO
FINANCIAL STATEMENTS).
D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
E INCLUDES INTEREST EXPENSE OF $.008 PER SHARE.
F INCLUDES INTEREST EXPENSE OF .08% OF AVERAGE NET ASSETS.
G FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
NOTES TO FINANCIAL STATEMENTS
For the period ended June 30, 1996 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity New Markets Income Fund (the fund) is a fund of Fidelity
Investment Trust (the trust) and is authorized to issue an unlimited number
of shares. 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. The financial
statements have been prepared in conformity with generally accepted
accounting principles which permit 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. Securities for which quotations are readily available
are valued at the last sale price, or if no sale price, at the closing bid
price in the principal market in which such securities are normally traded.
Securities (including restricted securities) for which quotations are not
readily available are valued primarily using dealer-supplied valuations or
at their fair value as determined in good faith under consistently applied
procedures under the general supervision of the Board of Trustees.
Short-term securities maturing within sixty days of their purchase date are
valued at amortized cost or original cost plus accrued interest, both of
which approximate current value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Purchases and
sales of securities, income receipts, and expense payments are translated
into U.S. dollars at the prevailing exchange rate on the respective dates
of the transactions.
Net realized gains and losses on foreign currency transactions represent
net gains and losses from sales and maturities of forward currency
contracts, disposition of foreign currencies, currency gains and losses
realized between the trade and settlement dates on securities transactions,
and the difference between the amount of net investment income accrued and
the U.S. dollar amount actually received. The effects of changes in foreign
currency exchange rates on investments in securities are included with the
net realized and unrealized gain or loss on investment securities.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to U.S. federal
income taxes to the extent that it distributes substantially all of its
taxable income for its fiscal year. The fund may be subject to foreign
taxes on income, gains on investments or currency repatriation. The fund
accrues such taxes as applicable. The schedule of investments includes
information regarding income taxes under the caption "Income Tax
Information."
INVESTMENT INCOME. Interest income, which includes accretion of original
issue discount, is accrued as earned. Investment income is recorded net of
foreign taxes withheld where recovery of such taxes is uncertain.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS.
Dividends are declared daily and paid monthly from net investment income.
Distributions to shareholders from realized capital gains on investments,
if any, 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. These differences, which may result in distribution
reclassifications, are primarily due to differing treatments for paydown
gains/losses on certain securities, foreign currency transactions, market
discount, capital loss carryforwards and losses deferred due to wash sales
and excise tax regulations.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect the per-share allocation between net investment income and realized
and unrealized gain (loss). Undistributed net investment income and
accumulated undistributed net realized gain (loss) on investments and
foreign currency transactions may include temporary book and tax basis
differences which will reverse in a subsequent period. Any taxable income
or gain remaining at fiscal year end is distributed in the following year.
REDEMPTION FEES. Shares held in the fund less than 180 days are subject to
a redemption fee equal to 1% of the proceeds of the redeemed shares. The
fee, which is retained by the fund, is accounted for as an addition to paid
in capital.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
FORWARD FOREIGN CURRENCY CONTRACTS. The fund may use foreign currency
contracts to facilitate transactions in foreign securities and to manage
the fund's currency exposure. Contracts to buy generally are used to
acquire exposure to foreign currencies, while contracts to sell are used to
hedge the fund's investments against currency fluctuations. Also, a
contract to buy or sell can offset a previous contract. Losses may arise
from changes in the value of the foreign currency or if the counterparties
do not perform under the contracts' terms.
The U.S. dollar value of forward foreign currency contracts is determined
using forward currency exchange rates supplied by a quotation service.
Purchases and sales of forward foreign currency contracts having the same
settlement date and broker are offset and any realized gain (loss) is
recognized on the date of offset; otherwise, gain (loss) is recognized on
settlement date.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along
2. OPERATING POLICIES -
CONTINUED
JOINT TRADING ACCOUNT - CONTINUED
with other affiliated entities of Fidelity Management & Research Company
(FMR), may transfer uninvested cash balances into one or more joint trading
accounts. These balances are invested in one or more repurchase agreements
that mature in 60 days or less from the date of purchase for U.S. Treasury
or Federal Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
Securities are transferred to an account of the fund, or to the Joint
Trading Account, at a bank custodian. The securities are marked-to-market
daily and maintained at a value at least equal to the principal amount of
the repurchase agreement (including accrued interest). FMR, the fund's
investment adviser, is responsible for determining that the value of the
underlying securities remains in accordance with the market value
requirements stated above.
INTERFUND LENDING PROGRAM.
Pursuant to an Exemptive Order issued by the SEC, the fund, along with
other registered investment companies having management contracts with FMR,
may participate in an interfund lending program. This program provides an
alternative credit facility allowing the fund to borrow from, or lend money
to, other participating funds.
DELAYED DELIVERY TRANSACTIONS. The fund may purchase or sell securities on
a when-issued or forward commitment
basis. Payment and delivery may take place a month or more after the date
of the transaction. 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. The market value of the securities purchased
or sold on a when-issued or forward commitment 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 security. Losses
may arise due to changes in the market value of the underlying securities
or if the counterparty does not perform under the contract.
FUTURES CONTRACTS AND OPTIONS. The fund may use futures and options
contracts to manage its exposure to the stock and bond markets and to
fluctuations in interest rates and currency values. Buying futures, writing
puts, and buying calls tend to increase the fund's exposure to the
underlying instrument. Selling futures, buying puts, and writing calls tend
to decrease the fund's exposure to the underlying instrument, or hedge
other fund investments. The underlying face amount at value is shown in the
schedule of investments under the caption "Purchased Options." This amount
reflects each contract's exposure to the underlying instrument at the
period end. Losses may arise from changes in the value of the underlying
instruments, if there is an illiquid secondary market for the contracts, or
if the counterparties do not perform under the contracts' terms.
2. OPERATING POLICIES -
CONTINUED
FUTURES CONTRACTS AND OPTIONS - CONTINUED
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Exchange-traded
options are valued using the last sale price or, in the absence of a sale,
the last offering price. Options traded over-the-counter are valued using
dealer-supplied valuations.
LOANS AND OTHER DIRECT DEBT INSTRUMENTS. The fund is permitted to invest in
loans and loan participations, trade claims or other receivables. These
investments may include standby financing commitments that obligate the
fund to supply additional cash to the borrower on demand. Loan
participations involve a risk of insolvency of the lending bank or other
financial intermediary. At the end of the period, these investments
amounted to $28,818,700 or 15.2% of net assets.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $402,679,382 and $402,376,687, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly
fee that is calculated on the basis of a group fee rate plus a fixed
individual fund fee rate applied to the average net assets of the fund. The
group fee rate is the weighted average of a series of rates and is based on
the monthly average net assets of all the mutual funds advised by FMR. The
rates ranged from .1100% to .3700% for the period. In the event that these
rates were lower than the contractual rates in effect during the period,
FMR voluntarily implemented the above rates, as they resulted in the same
or a lower management fee. The annual individual fund fee rate is .55%. For
the period, the management fee was equivalent to an annualized rate of .70%
of average net assets.
SUB-ADVISER FEE. FMR, on behalf of the fund, entered into sub-advisory
agreements with Fidelity Management & Research (U.K.) Inc., Fidelity
Management & Research Far East Inc., Fidelity International Investment
Advisors (FIIA), and Fidelity Investments Japan Ltd. In addition, FIIA
entered into a sub-advisory agreement with its subsidiary, Fidelity
International Investment Advisors (U.K.) Limited (FIIAL U.K.). Under the
sub-advisory arrangements, FMR may receive investment advice and research
services and may grant the sub-advisers investment management authority to
buy and sell securities. FMR pays its sub-advisers either a portion of its
management fee or a fee based on costs incurred for these services. FIIA
pays FIIAL U.K. a fee based on costs incurred for either service.
TRANSFER AGENT FEES. Fidelity Service Co. (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
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT FEES - CONTINUED
type of account. FSC pays for typesetting, printing and mailing of all
shareholder reports, except proxy statements. For the period, the transfer
agent fees were equivalent to an annualized rate of .19% of average net
assets.
ACCOUNTING FEES. FSC maintains the fund's accounting records. The fee is
based on the level of average net assets for the month plus out-of-pocket
expenses.
5. INTERFUND LENDING PROGRAM.
The fund participated in the interfund lending program as a borrower. The
maximum loan and the average daily loan balances during the period for
which loans were outstanding amounted to $7,822,000 and $4,020,556,
respectively. The weighted average interest rate was 5.83%. Interest
expense includes $5,856 paid under the interfund lending program.
6. EXPENSE REDUCTIONS.
The fund has entered into an arrangement with its transfer agent whereby
interest earned on uninvested cash balances was used to offset a portion of
the fund's expenses. During the period, the fund's transfer agent fees were
reduced by $1,390 under this arrangement.
7. CREDIT RISK.
The fund's relatively large investment in countries with limited or
developing capital markets may involve greater risks than investments in
more developed markets and the prices of such investments may be volatile.
The yields of emerging market debt obligations reflect, among other things,
perceived credit risk. The consequences of political, social or economic
changes in these markets may have disruptive effects on the market prices
of the fund's investments and the income they generate, as well as the
fund's ability to repatriate such amounts.
8. LITIGATION.
The fund is engaged in litigation against the obligor on the inflation
adjusted debt of Siderurgica Brasileiras SA, contesting the calculation of
the principal adjustment. As of period end, the fund no longer holds
Siderurgica Brasileiras SA debt securities. The probability of success of
this litigation cannot be predicted and the amount of recovery cannot be
estimated. Any recovery from this litigation would inure to the benefit of
the fund.
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For directions and hours,
please call 1-800-544-9797.
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WISCONSIN
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Boston, MA
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(U.K.) Inc., London, England
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(Far East) Inc., Tokyo, Japan
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Advisors
Fidelity International Investment
Advisors (U.K.) Limited
Fidelity Investments Japan Ltd.
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Robert A. Lawrence, Vice President
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
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(2_FIDELITY_LOGOS)FIDELITY

SHORT-TERM WORLD BOND
FUND

SEMIANNUAL REPORT
JUNE 30, 1996
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

FUND TALK 7 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 10 A summary of major shifts in the
fund's investments over the past six
months.

INVESTMENTS 11 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 17 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 21 Notes to the financial statements.

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. A fund's total
return includes changes in a fund's share price, as well as reinvestment of
any dividends (or income) and capital gains (the profits the fund earns
when it sells bonds that have grown in value). You can also look at the
fund's dividends and yield. If Fidelity had not reimbursed certain fund
expenses, life of fund figures would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JUNE 30, 1996 PAST 6 PAST 1 LIFE OF
MONTHS YEAR FUND

Short-Term World Bond 1.96% 6.44% 23.56%

Salomon Bros. World Govt. Bond Index 2.66% 7.57% n/a
1-3 Yrs. Hdgd.

Short World Multi-Market Funds Average 3.45% 8.55% n/a

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, or since the fund
started on October 4, 1991. For example, if you invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment would
be $1,050. You can compare the fund's returns to the performance of the
Salomon Brothers World Government Bond Index 1-3 Years Currency-Hedged into
U.S. Dollar Terms, which is a market-capitalization weighted index that
includes debt issues traded in 14 world government bond markets. To measure
how the fund's performance stacked up against its peers, you can compare it
to the short world multi-market funds average, which reflects the
performance of 34 mutual funds with similar objectives tracked by Lipper
Analytical Services, Inc. over the past six months. Both benchmarks include
reinvested dividends and capital gains, if any, and exclude sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JUNE 30, 1996 PAST 1 LIFE OF
YEAR FUND

Short-Term World Bond 6.44% 4.56%

Salomon Bros. World Govt. Bond Index 7.57% n/a
1-3 Yrs. Hdgd.

Short World Multi-Market Funds Average 8.55% n/a

$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Short-Term World Bond Fund on October 31, 1991,
shortly after the fund started. As the chart shows, by June 30, 1996, the
value of the investment would have grown to $12,237 - a 22.37% increase on
the initial investment. For comparison, look at how the Salomon Brothers
World Government Bond Index 1-3 Years Currency-Hedged into U.S. Dollar
Terms did over the same period. With dividends and capital gains, if any,
reinvested, the same $10,000 investment would have grown to $13,252 - a
32.52% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, generally move in
the opposite direction of
interest rates. In turn, the
share price, return, and yield
of a fund that invests in
bonds will vary. That means if
you sell your shares during a
market downturn, you might
lose money. But if you can ride
out the market's ups and
downs, you may have a gain.
(checkmark)
DIVIDENDS AND YIELD
PERIODS ENDED JUNE 30, 1996 PAST 1 PAST 6 PAST 1
MONTH MONTHS YEAR

Dividends per share 4.40(cents) 27.44(cents) 55.00(cents)

Annualized dividend rate 6.02% 6.15% 6.15%

30-day annualized yield 4.99% - -

DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on the fund's average share price of $8.89
over the past month, $8.95 over the past six months and $8.95 over the past
year, you can compare the fund's income distributions over these three
periods.
The 30-day annualized YIELD is a standard formula for all bond funds based
on the yields of the bonds in the fund, averaged over the past 30 days.
This figure shows you the yield characteristics of the fund's investments
at the end of the period. It also helps you compare funds from different
companies on an equal basis. It does not reflect the cost of hedging and
other currency gains and losses.
FUND TALK: THE MANAGER'S OVERVIEW

NOTE TO SHAREHOLDERS: Effective February 26, 1996, Charles Morrison (right
photo) and Luc Huyghebaert became co-managers of the fund. Charles Morrison
joined Fidelity in 1987 and also manages Fidelity Advisor Short
Fixed-Income Fund, Fidelity Short-Term Bond Fund and Spartan Short-Term
Bond Fund. He will manage the U.S. portion of the fund. Luc Huyghebaert,
who is based in London and will manage the international portion of the
fund, joined Fidelity International, Limited, a sister company of Fidelity
Investments, in 1994. He manages several funds for FIL, including
International Bond Fund, European Bond Fund, Yen Bond Fund and DM Short
Term Bond Fund. The following is their discussion of the fund's performance
over the past six months and their outlook for the future.
Q. CHARLIE, HOW HAS THE FUND
PERFORMED?
C.M. For the six months ended June 30, 1996, the fund had a total return of
1.96%. That lagged the short world multi-market funds average tracked by
Lipper Analytical Services, Inc., which posted a return of 3.45%, and the
Salomon Brothers World Government Bond Index 1-3 Years Currency-Hedged into
U.S. Dollar Terms, which returned 2.66% during the same period. For the 12
months ended June 30, 1996, the fund had a total return of 6.44%, while the
short world multi-market funds average and the Salomon Brothers index
returned 8.55% and 7.57%, respectively.
Q. LUC, WHY DID THE FUND'S PERFORMANCE TRAIL THAT OF THE INDEX AND THE
AVERAGE?
L.H. The main reason that the fund underperformed was that it had a heavier
weighting of U.S. assets than the index and the Lipper average. As a result
of a reversal in the interest-rate trend, the U.S. market has been one of
the weaker performers in the universe in which the fund invests. The more
attractive performance of other markets mainly resulted from strong
contributions from three countries - Italy, Sweden and Spain. The fund did
not participate more aggressively in the positive performance of these
markets because they too often have experienced unexpected volatility.
Q. CHARLIE, THE U.S. MARKET STRUGGLED DURING THE PAST SIX MONTHS. CAN YOU
GIVE US AN IDEA WHY?
C.M. Back in March, the employment growth statistics for the month of
February were reported at a much higher level than the market had
previously
been expecting. Whereas the Federal Reserve Board had been in an easing
mode at the time and had lowered the fed funds rate - the rate banks charge
each other for overnight loans - in December 1995 and then again in January
1996, expectations regarding the direction of interest rates flip-flopped
following the strength seen in the February employment report. Since that
report, the economy has continued to show many signs of strength. As a
result, interest rates have continued their climb. The yield on the
two-year Treasury note reached a low of 4.8% in early February, but rose to
6.3% at the end of the period.
Q. WHAT CHANGES HAVE YOU MADE TO THE U.S. PORTION OF THE FUND?
C.M. The most significant changes to the fund have come in the corporate
sector, as I have changed the composition of the corporate exposure within
the U.S. portion of the fund. Most notably, I have significantly reduced
investments in the finance sector, while I have increased exposure to the
asset-backed and industrial sectors. These changes were made to more
broadly diversify the fund. The industrial corporate bonds largely came
from the tobacco, cable, entertainment and airline sectors - and consisted
of very short-term bonds that offered enhanced yield. The asset-backed
securities - bonds issued by financial institutions that are backed by
loans or credit payments - also were attractive because they offered both
higher quality and additional yield relative to other alternatives.
Q. WHAT'S YOUR OUTLOOK ON THE DOMESTIC SIDE?
C.M. The U.S. portion of the fund is positioned defensively at this time.
Many sectors in the short end of the U.S. market continue to trade at very
high valuations. It makes sense to be patient in this environment and be
very selective adding new positions to the fund. With that said, however,
there are opportunities to outperform, and I will continue to seek out
attractive corporate and mortgage-backed securities.
Q. TURNING BACK TO YOU, LUC, WHAT CAN YOU TELL US ABOUT THE PERFORMANCE OF
FOREIGN MARKETS OVER THE PERIOD?
L.H. Besides the performance of Italy, Sweden and Spain that I already
mentioned, the performances of the other markets have all, to a certain
degree, been restrained by the trend in the United States. Even though the
core of Europe had a very different outlook and expectations than the U.S.,
those markets have clearly slowed unexpectedly due to the influence of the
reversal in the U.S. Overall, European economies remained flat. While
French rates have converged with those in Germany, short-term rates in the
United Kingdom remained relatively high. That's partly because the U.K. had
a slightly more buoyant economy and an element of political uncertainty due
to upcoming elections. Japan remained unattractive as current yields
remained low.
Q. WHAT'S YOUR OUTLOOK FOR THE FOREIGN MARKETS OVER THE NEXT SIX MONTHS?
L.H. Investors probably will keep a close eye on the U.S. market, as that
market tends to influence the others. If the Federal Reserve Board
increases interest rates, it might have repercussions in the other
developed markets.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGERS
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGERS' VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.

The charts below highlight three different aspects of the fund's
investments: the country where they were issued, their sensitivity to
interest rate changes, and their currency exposure. The top countries in
each table differ because some securities have more interest rate risk than
others, because securities issued in one country may be denominated in
another country's currency, and because of the effects of currency hedging.
TOP COUNTRIES AS OF JUNE 30, 1996
(EXCLUDING REPURCHASE AGREEMENTS) % OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

United States 58 41

Italy 8 12

Germany 7 6

France 4 5

Netherlands Antilles 4 0

TOP COUNTRIES ARE BASED ON THE LOCATION OF THE ISSUER OF EACH SECURITY,
INDICATING WHERE THE FUND IS
EXPOSED TO POLITICAL AND CREDIT RISKS. PERCENTAGES ARE ADJUSTED FOR THE
EFFECT OF OPEN FUTURES CONTRACTS,
IF APPLICABLE.
TOP INTEREST RATE EXPOSURES AS OF JUNE 30, 1996
(ESTIMATED, BY COUNTRY) % OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS IN THESE
SECURITIES
6 MONTHS AGO

United States 60 40

Japan 9 16

Germany 7 6

Italy 7 10

France 5 6

FIDELITY ESTIMATES INTEREST-RATE EXPOSURES BASED ON THE DURATION, OR
INTEREST RATE SENSITIVITY, OF THE FUND'S HOLDINGS. AS OF JUNE 30, 1996, THE
FUND WAS MOST SENSITIVE TO INTEREST RATE MOVEMENTS IN THE U.S., WHICH
ACCOUNTED FOR APPROXIMATELY 60% OF THE FUND'S INTEREST RATE EXPOSURE.
TOP CURRENCY EXPOSURES AS OF JUNE 30, 1996
(ESTIMATED, BY COUNTRY) % OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS IN THESE
SECURITIES
6 MONTHS AGO

U.S. dollar 99 99

THE U.S. DOLLAR EXPOSURE ABOVE INCLUDES THE EFFECTS OF FOREIGN INVESTMENTS
WHOSE CURRENCY RISK IS FULLY HEDGED. THERE WERE NO FOREIGN CURRENCY
EXPOSURES IN EXCESS OF 0.5% AS OF JUNE 30, 1996.
INVESTMENTS JUNE 30, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

NONCONVERTIBLE BONDS - 37.0%
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (A) (NOTE 1)
AUSTRALIA - 0.7%
New South Wales Treasury Corp. 7 1/2%,
2/1/98 Aa2 AUD 800,000 $ 625,315
CANADA - 1.6%
Ford Credit Canada Ltd. 8.90%, 2/23/98 A1 CAD 1,000,000 762,715
General Motors Acceptance Corp. of Canada Ltd.
8.30%, 4/12/98 A3 CAD 1,000,000 755,528
1,518,243
FRANCE - 1.8%
Credit Local De France 5 5/8%, 1/4/99 Aaa FRF 9,000,000 1,770,669
GERMANY - 1.7%
Rheinische Hypothekenbank AG, Series 499,
5 1/2%, 12/20/99 Aaa DEM 2,500,000 1,660,380
NETHERLANDS - 0.2%
Ford Capital BV yankee 9 3/8%, 1/1/98 A1 150,000 156,290
NETHERLANDS ANTILLES - 4.3%
Deutsche Bank Finance NV 4 3/8%, 7/16/98 Aaa JPY 425,000,000 4,100,656
UNITED KINGDOM - 0.9%
Abbey National Treasury Services PLC 7 3/4%,
6/23/98 Aa2 GBP 550,000 870,185
UNITED STATES OF AMERICA - 25.8%
AMR Corp. 7 3/4%, 12/1/97 Baa3 600,000 609,504
Advanta National Bank 6.41%, 4/30/98 Baa2 300,000 298,329
Aristar, Inc. 7 1/2%, 7/1/99 Baa1 300,000 306,291
BankAmerica Corp. 6%, 7/15/97 A1 1,000,000 999,260
Banponce Financial Corp.:
6.34%, 3/29/99 Baa1 80,000 79,014
6.88%, 6/16/00 Baa1 80,000 79,690
Banponce Corp. 6.378%, 4/8/99 Baa1 130,000 128,185
Beneficial Corp.:
8.26%, 8/20/96 A2 1,000,000 1,003,100
8.80%, 6/15/98 A2 1,600,000 1,666,096
Capital One Bank:
8 1/8%, 2/27/98 Baa3 530,000 541,830
6.66%, 8/17/98 Baa3 650,000 648,694
Caterpillar Financial Asset Trust 6.55%, 5/22/02 A3 280,000 278,732
Chase Manhattan Corp.:
6 5/8%, 1/15/98 A1 1,000,000 1,003,320
8%, 6/15/99 A2 1,000,000 1,033,400
NONCONVERTIBLE BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (A) (NOTE 1)
UNITED STATES OF AMERICA - CONTINUED
Comdisco, Inc.:
5.76%, 1/19/99 Baa2 $ 1,000,000 $ 981,200
7 1/4%, 4/15/98 Baa2 1,000,000 1,012,050
Delta Air Lines, Inc. 9 7/8%, 1/1/98 Baa3 160,000 167,229
Discover Card Trust 7 1/2%, 6/16/00 A2 290,000 294,167
Finova Capital Corp.:
5.98%, 10/31/97 Baa1 480,000 478,618
6.14%, 11/2/98 Baa1 100,000 99,113
First Chicago Corp. 9 7/8%, 7/1/1999 A2 1,000,000 1,085,120
First Interstate Bancorp. 8 5/8%, 4/1/99 A2 1,000,000 1,047,140
First USA Bank:
6 1/8%, 10/30/97 Baa3 200,000 199,912
8.20%, 2/15/98 Baa3 1,000,000 1,023,460
General Motors Acceptance Corp.:
5 3/4%, 12/10/97 A3 720,000 715,874
6.40%, 6/8/98 A3 1,000,000 1,000,140
Green Tree Financial Corp.:
5 1/2%, 1/31/00 Aaa 52,012 51,118
6 1/2%, 6/15/27 Aaa 120,000 119,474
6.65%, 7/15/27 Aaa 260,000 260,811
Household Finance Corp. 7.55%, 3/16/98 A2 560,000 570,606
Nationsbank Corp. 5 1/8%, 9/15/98 A2 1,000,000 972,750
Northwest Financial, Inc. 6%, 8/15/97 Aa3 1,100,000 1,095,490
Premier Auto Trust:
8.05%, 4/4/00 Aaa 130,000 133,413
6%, 5/6/00 Aaa 250,000 248,515
6.35%, 7/6/00 A3 240,000 237,900
RJR Nabisco, Inc.:
8%, 1/15/00 Baa3 180,000 180,005
8%, 7/15/01 Baa3 280,000 277,060
Structured Asset Securities Corp. commercial Series
1995-C4 Class A1A, 6.90%, 6/25/26 AAA 231,799 229,771
Time Warner, Inc. 7.45%, 2/1/98 Ba1 1,180,000 1,192,779
WFS Financial Grantor Trust:
6.05%, 6/1/00 Aaa 740,000 736,994
7.05%, 11/20/03 Aaa 650,000 650,813
Wells Fargo & Co. 8.20%, 11/1/96 A1 1,000,000 1,007,140
24,744,107
TOTAL NONCONVERTIBLE BONDS
(Cost $36,325,327) 35,445,845
GOVERNMENT OBLIGATIONS (E) - 57.6%
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (A) (NOTE 1)
ARGENTINA - 1.7%
Province of Chaco 11 7/8%, 9/10/97 (d) - $ 1,549,999 $ 1,668,422
BELGIUM - 1.7%
Kingdom of Belgium 5.10%, 11/21/04 (c) Aa BEF 50,000,000 1,626,142
DENMARK - 1.1%
Kingdom of Denmark:
6 1/4%, 2/10/97 Aaa DKK 2,000,000 344,813
9%, 11/15/98 Aaa DKK 4,000,000 738,453
1,083,266
FRANCE - 2.6%
French Government:
B-Tan 8 1/2%, 11/12/97 Aaa FRF 10,000,000 2,045,626
OAT 8 1/8%, 5/25/99 Aaa FRF 2,000,000 419,942
2,465,568
GERMANY - 5.5%
Federal Republic of Germany:
6 1/8%, 7/21/97 Aaa DEM 5,000,000 3,360,446
6 3/4%, 8/20/98 Aaa DEM 2,700,000 1,855,553
5,215,999
ITALY - 7.5%
Republic of Italy (f):
8 1/2%, 8/01/97 A1 ITL 5,000,000 3,255,375
8 1/2%, 1/1 /99 A1 ITL 6,000,000 3,934,986
7,190,361
NETHERLANDS - 1.0%
Dutch Government 6 3/4%, 2/15/99 Aaa NLG 1,600,000 985,530
SPAIN - 2.2%
Kingdom of Spain (f):
11.60%, 1/15/97 AAA ESP 50,000 398,416
11.45%, 8/30/98 AAA ESP 200,000 1,679,785
2,078,201
SWEDEN - 1.0%
Swedish Government 11%, 1/21/99 Aa1 SEK 5,500,000 911,151
GOVERNMENT OBLIGATIONS (E) - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (A) (NOTE 1)
UNITED KINGDOM - 0.9%
United Kingdom, Great Britain & Northern Ireland
14%, 5/22/01 Aaa GBP 500,000 $ 879,503
UNITED STATES OF AMERICA - 32.4%
Federal Home Loan Mortgage Corporation:
7.00% 11/1/97 to 6/1/01 Aaa 309,100 310,355
Federal Home Loan Bank
4.83% 9/21/98 callable Aaa 275,000 267,223
Government Trust Certificates (assets of Trust
guaranteed by U.S. Government through
Defense Security Assistance Agency):
Class 1-C, 9 1/4%, 11/15/01 Aaa 166,000 177,296
Class T-2 9 5/8%, 5/15/02 Aaa 80,000 85,672
U.S. Treasury Notes:
8 1/2%, 5/15/97 Aaa 420,000 429,647
8 3/4%, 10/15/97 Aaa 8,600,000 8,895,582
8 7/8%, 11/15/97 Aaa 1,692,000 1,755,179
6.125%, 3/31/98 Aaa 12,820,000 12,830,000
9 1/4%, 8/15/98 Aaa 333,000 353,033
8 7/8%, 2/15/99 Aaa 100,000 106,234
7 3/4%, 12/31/99 Aaa 4,740,000 4,938,464
6 7/8%, 3/31/00 Aaa 870,000 882,641
31,031,326
TOTAL GOVERNMENT OBLIGATIONS
(Cost $54,868,344) 55,135,469
SUPRANATIONAL OBLIGATIONS - 5.4%
Eurofima euro 11 3/8%, 11/30/99 Aaa GBP 200,000 348,658
International Bank for Reconstruction &
Development Worldbank
4 1/2%, 12/22/97 (f) Aaa JPY 500,000 4,790,119
TOTAL SUPRANATIONAL OBLIGATIONS
(Cost $5,962,595) $ 5,138,777
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $97,156,266) $ 95,720,091
FORWARD FOREIGN CURRENCY CONTRACTS
SETTLEMENT UNREALIZED
DATE VALUE GAIN/(LOSS)
CONTRACTS TO BUY
2,064,525 DKK 7/17/96 $ 351,762 $ 1,129
1,720,000 SEK 7/17/96 258,663 827
TOTAL CONTRACTS TO BUY
(Payable amount $608,469) $ 610,425 $ 1,956
THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 0.6%
CONTRACTS TO SELL
764,331 AUD 7/31/96 $ 600,769 $ (769)
50,000,000 BEF 9/27/96 1,603,520 (8,878)
1,360,114 GBP 7/31/96 2,110,742 (59,690)
2,019,298 CAD 7/29/96 1,481,884 (1,442)
8,258,017 DKK 7/17/96 1,407,033 13,505
1,622,394 NLG 8/13/96 952,119 11,871
22,009,465 FRF 7/09/96 4,271,673 102,661
10,738,313 DEM 7/31/96 7,057,626 14,008
11,000,000 ITL 9/27/96 7,111,456 3,680
965,700,000 JPY 7/31/96 8,844,771 405,229
270,106 ESP 8/13/96 2,101,581 13,700
7,358,661 SEK 7/17/96 1,106,638 (21,450)
TOTAL CONTRACTS TO SELL
(Receivable amount $39,122,237) $ 38,649,812 $ 472,425
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 40.4%
CURRENCY ABBREVIATIONS
AUD - Australian dollar
BEF - Belgian franc
GBP - British pound
CAD - Canadian dollar
DKK - Danish krone
NLG - Dutch guilder
FRF - French franc
DEM - German deutsche mark
ITL - Italian lira
JPY - Japanese yen
ESP - Spanish peseta
SEK - Swedish krona
LEGEND
1. Principal amount is stated in United States dollars unless otherwise
noted.
2. Standard & Poor's credit ratings are used in the absence of a rating by
Moody's Investors Service, Inc.
3. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
4. Restricted securities - Investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on each holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
Province of Chaco
11 7/8%, 9/10/97 3/9/94 $ 2,207,850
5. Some foreign government obligations have not been individually rated by
S&P or Moody's. The ratings listed are assigned to securities by FMR, the
fund's investment adviser, based principally on S&P and Moody's ratings of
the sovereign credit of the issuing government.
6. Principal amount in thousands.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 84.4% AAA, AA, A 86.8%
Baa 7.4% BBB 9.0%
Ba 1.3% BB 0.8%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
For some foreign government obligations, FMR has assigned the ratings of
the sovereign credit of the issuing government. The percentage not rated by
either S&P or Moody's amounted to 1.7% including long-term debt categorized
as other securities.
MARKET SECTOR DIVERSIFICATION
As a Percentage of Total Value of Investment in Securities (Unaudited)
Commercial Mortgage Securities 0.2
Finance 31.5
Foreign Government Obligations 25.2
U.S. Government Obligations 32.4
Media & Leisure 1.2
Nondurables 0.5
Services 0.7
Supranational Obligations 5.4
Technology 2.1
Transportation 0.8
100.0%
INCOME TAX INFORMATION
At June 30, 1996, the aggregate cost of invest- ment securities for income
tax purposes was $97,156,266. Net unrealized depreciation aggregated
$1,436,175, of which $1,248,125 related to appreciated investment
securities and $(2,684,300) related to depreciated investment securities.
At December 31, 1995, the fund had a capital loss carryforward of
approximately $32,196,000 of which $349,000, $2,324,000, $13,718,000 and
$15,805,000 will expire on December 31, 1999, 2000, 2002 and 2003,
respectively.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JUNE 30, 1996 (UNAUDITED)

ASSETS

Investment in securities, at value (cost $97,156,266) - $ 95,720,091
See accompanying schedule

Receivable for investments sold 1,420,449

Unrealized appreciation on foreign currency contracts 566,898

Receivable for closed foreign currency contracts 2,568

Interest receivable 2,419,568

TOTAL ASSETS 100,129,574

LIABILITIES

Payable to custodian bank $ 123,056

Payable for investments purchased 1,220,086

Unrealized depreciation on foreign currency contracts 92,517

Payable for closed foreign currency contracts 404

Payable for fund shares redeemed 101,761

Distributions payable 91,490

Accrued management fee 49,113

Other payables and accrued expenses 63,875

TOTAL LIABILITIES 1,742,302

NET ASSETS $ 98,387,272

Net Assets consist of:

Paid in capital $ 132,478,063

Distributions in excess of net investment income (1,229,692)

Accumulated undistributed net realized gain (loss) on (32,177,973)
investments and foreign currency transactions

Net unrealized appreciation (depreciation) on (683,126)
investments and assets and liabilities in foreign
currencies

NET ASSETS, for 11,044,424 shares outstanding $ 98,387,272

NET ASSET VALUE, offering price and redemption price per $8.91
share ($98,387,272 (divided by) 11,044,424 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)

INVESTMENT INCOME 3,951,167
Interest

Less foreign taxes withheld (76,983)

TOTAL INCOME 3,874,184

EXPENSES

Management fee $ 325,773

Transfer agent fees 97,829

Accounting fees and expenses 38,179

Non-interested trustees' compensation 210

Custodian fees and expenses 16,201

Registration fees 13,141

Audit 41,646

Legal 242

Miscellaneous 1,981

Total expenses before reductions 535,202

Expense reductions (1,993) 533,209

NET INVESTMENT INCOME 3,340,975

REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:

Investment securities (1,181,925)

Foreign currency transactions 1,199,863 17,938

Change in net unrealized appreciation (depreciation) on:

Investment securities (1,489,339)

Assets and liabilities in foreign currencies 250,737 (1,238,602)

NET GAIN (LOSS) (1,220,664)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 2,120,311
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED JUNE DECEMBER 31,
30,1996 1995
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

Operations $ 3,340,975 $ 10,659,268
Net investment income

Net realized gain (loss) 17,938 (9,940,229)

Change in net unrealized appreciation (depreciation) (1,238,602) 10,030,355

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 2,120,311 10,749,394
FROM OPERATIONS

Distributions to shareholders (2,954,784) (10,715,310)
From net investment income

In excess of net investment income (393,408) -

TOTAL DISTRIBUTIONS (3,348,192) (10,715,310)

Share transactions 6,424,676 27,319,850
Net proceeds from sales of shares

Reinvestment of distributions 2,758,082 8,969,845

Cost of shares redeemed (31,501,268) (179,797,316)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (22,318,510) (143,507,621)
FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS (23,546,391) (143,473,537)

NET ASSETS

Beginning of period 121,933,663 265,407,200

End of period (including distributions in excess $ 98,387,272 $ 121,933,663
of net investment income of $(1,229,692) and
$(1,222,475), respectively)

OTHER INFORMATION
Shares

Sold 716,344 3,087,868

Issued in reinvestment of distributions 308,351 1,012,063

Redeemed (3,518,176) (20,354,972)

Net increase (decrease) (2,493,481) (16,255,041)

</TABLE>

SIX MONTHS YEARS ENDED DECEMBER 31, TWO MONTHS YEAR ENDED OCTOBER 4, 1991

FINANCIAL HIGHLIGHTS ENDED JUNE 30, ENDED OCTOBER 31, (COMMENCEMENT

1996 DECEMBER 31, OF OPERATIONS) TO

OCTOBER 31,

(UNAUDITED) 1995 1994 1993 D 1992 1992 1991

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 9.010 $ 8.910 $ 10.190 $ 9.680 $ 9.800 $ 10.040 $ 10.000

Income from Investment Operations .253 .619 .644 .564 .191 .835 .061
Net investment income

Net realized and unrealized gain (loss) (.079) .049 (1.218) .621 (.203) (.338) .037

Total from investment operations .174 .668 (.574) 1.185 (.012) .497 .098

Less Distributions

From net investment income (.242) (.568) (.199) (.543) (.108) (.737) (.058)

In excess of net investment income (.032) - (.050) (.132) - - -

Return of capital - - (.457) - - - -

Total distributions (.274) (.568) (.706) (.675) (.108) (.737) (.058)

Net asset value, end of period $ 8.910 $ 9.010 $ 8.910 $ 10.190 $ 9.680 $ 9.800 $ 10.040

TOTAL RETURN B, C 1.96% 7.79% (5.80)% 12.59% (.12)% 5.10% .98%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 98,387 $ 121,934 $ 265,407 $ 422,602 $ 458,846 $ 648,448 $ 44,318

Ratio of expenses to average net assets .98% 1.06% 1.01% 1.00% 1.20% A, 1.09% 1.00% A
A E , E

Ratio of net investment income to average 6.15% 6.42% 7.54% 8.00% 8.63% A 9.04% 9.07% A
net assets A

Portfolio turnover rate 180% 284% 134% 160% 117% A 154% 62% A
A

</TABLE>

A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
D EFFECTIVE JANUARY 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION 93-2,
"DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF INCOME,
CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES."
AS A RESULT, NET INVESTMENT INCOME PER SHARE MAY REFLECT CERTAIN
RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
E FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
NOTES TO FINANCIAL STATEMENTS
For the period ended June 30, 1996 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Short-Term World Bond Fund (the fund) is a fund of Fidelity
Investment Trust (the trust) and is authorized to issue an unlimited number
of shares. 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. The financial
statements have been prepared in conformity with generally accepted
accounting principles which permit 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. Securities for which quotations are readily available
are valued at the last sale price, or if no sale price, at the closing bid
price in the principal market in which such securities are normally traded.
Securities (including restricted securities) for which quotations are not
readily available are valued primarily using dealer-supplied valuations or
at their fair value as determined in good faith under consistently applied
procedures under the general supervision of the Board of Trustees.
Short-term securities maturing within sixty days of their purchase date are
valued at amortized cost or original cost plus accrued interest, both of
which approximate current value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Purchases and
sales of securities, income receipts, and expense payments are translated
into U.S. dollars at the prevailing exchange rate on the respective dates
of the transactions.
Net realized gains and losses on foreign currency transactions represent
net gains and losses from sales and maturities of forward currency
contracts, disposition of foreign currencies, currency gains and losses
realized between the trade and settlement dates on securities transactions,
and the difference between the amount of net investment income accrued and
the U.S. dollar amount actually received. The effects of changes in foreign
currency exchange rates on investments in securities are included with the
net realized and unrealized gain or loss on investment securities.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes substantially all of its taxable income for
its fiscal year. The schedule of investments includes information regarding
income taxes under the caption "Income Tax Information."
INVESTMENT INCOME. Interest income, which includes accretion of original
issue discount, is accrued as earned. Interest income is recorded net of
foreign taxes withheld where recovery of such taxes is uncertain.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid
monthly from net interest income. Distributions to shareholders from
realized capital gains on investments, if any, 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. These differences, which may result in distribution
reclassifications, are primarily due to differing treatments for futures
and options transactions, foreign currency transactions, market discount,
capital loss carryforwards, and losses deferred due to wash sales, futures
and options, excise tax regulations.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect the per-share allocation between net investment income and realized
and unrealized gain (loss). Distributions in excess of net investment
income and accumulated undistributed net realized gain (loss) on
investments and foreign currency transactions may include temporary book
and tax basis differences that will reverse in a subsequent period. Any
taxable income or gain remaining at fiscal year end is distributed in the
following year.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
FORWARD FOREIGN CURRENCY CONTRACTS. The fund may use foreign currency
contracts to facilitate transactions in foreign securities and to manage
the fund's currency exposure. Contracts to buy generally are used to
acquire exposure to foreign currencies, while contracts to sell are used to
hedge the fund's investments against currency fluctuations. Also, a
contract to buy or sell can offset a previous contract. These contracts
involve market risk in excess of the unrealized gain or loss reflected in
the fund's Statement of Assets and Liabilities. The U.S. dollar value of
the currencies the fund has committed to buy or sell is shown in the
schedule of investments under the caption "Forward Foreign Currency
Contracts." This amount represents the aggregate exposure to each currency
the fund has acquired or hedged through currency contracts at period end.
Losses may arise from changes in the value of the foreign currency or if
the counterparties do not perform under the contracts' terms.
The U.S. dollar value of forward foreign currency contracts is determined
using forward currency exchange rates supplied by a quotation service.
Purchases and sales of forward foreign currency contracts having the same
settlement date and broker are offset and any realized gain (loss) is
recognized on the date
2. OPERATING POLICIES -
CONTINUED
FORWARD FOREIGN CURRENCY
CONTRACTS - CONTINUED
of offset; otherwise, gain (loss) is recognized on settlement date.
Contracts that have been offset with different counterparties are reflected
as both a contract to buy and a contract to sell in the schedule of
investments under the caption "Forward Foreign Currency Contracts."
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other affiliated
entities of Fidelity Management & Research Company (FMR), may transfer
uninvested cash balances into one or more joint trading accounts. These
balances are invested in one or more repurchase agreements that mature in
60 days or less from the date of purchase for U.S. Treasury or Federal
Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
Securities are transferred to an account of the fund, or to the Joint
Trading Account, at a bank custodian. The securities are marked-to-market
daily and maintained at a value at least equal to the principal amount of
the repurchase agreement (including accrued interest). FMR, the fund's
investment adviser, is responsible for determining that the value of the
underlying securities remains in accordance with the market value
requirements stated above.
FUTURES CONTRACTS AND OPTIONS. The fund may use futures and options
contracts to manage its exposure to the bond market and to fluctuations in
interest rates. Buying futures, writing puts, and buying calls tend to
increase the fund's exposure to the underlying instrument. Selling futures,
buying puts, and writing calls tend to decrease the fund's exposure to the
underlying instrument, or hedge other fund investments. Losses may arise
from changes in the value of the underlying instruments, if there is an
illiquid secondary market for the contracts, or if the counterparties do
not perform under the contracts' terms.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Exchange-traded
options are valued using the last sale price or, in the absence of a sale,
the last offering price. Options traded over-the-counter are valued using
dealer-supplied valuations.
INDEXED SECURITIES. The fund may invest in indexed securities whose values
are linked either directly or inversely to changes in foreign currencies,
interest rates, commodities, indices, or other underlying instruments. The
fund uses these securities to increase or decrease its exposure to
different underlying instruments and to gain exposure to markets that might
be difficult to invest in through conventional securities. Indexed
securities may be more volatile than their underlying instruments, but any
loss is limited to the amount of the original investment.
2. OPERATING POLICIES -
CONTINUED
RESTRICTED SECURITIES. The fund is permitted to 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. At the end of the period,
restricted securities (excluding 144A issues) amounted to $1,668,422 or
1.7% of net assets.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $41,763,791 and $62,894,670, respectively, of which U.S.
government and government agency obligations aggregated $50,596,168 and
$46,621,036, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, Fidelity Management &
Research Company (FMR) receives a monthly fee that is calculated on the
basis of a group fee rate plus a fixed individual fund fee rate applied to
the average net assets of the fund. The group fee rate is the weighted
average of a series of rates and is based on the monthly average net assets
of all the mutual funds advised by FMR. The rates ranged from .1100% to
.3700% for the period. In the event that these rates were lower than the
contractual rates in effect during the period, FMR voluntarily implemented
the above rates, as they resulted in the same or a lower management fee.
The annual individual fund fee rate is .45%. For the period, the management
fee was equivalent to an annualized rate of .60% of average net assets.
SUB-ADVISER FEE. FMR, on behalf of the fund, entered into sub-advisory
agreements with Fidelity Management & Research (U.K.) Inc., Fidelity
Management & Research Far East Inc., and Fidelity International Investment
Advisors (FIIA). In addition, FIIA entered into a sub-advisory agreement
with its subsidiary, Fidelity International Investment Advisors (U.K.)
Limited (FIIAL U.K.). Under the sub-advisory arrangements, FMR may receive
investment advice and research services and may grant the sub-advisers
investment management authority to buy and sell securities. FMR pays its
sub-advisers either a portion of its management fee or a fee based on costs
incurred for these services. FIIA pays FIIAL U.K. a fee based on costs
incurred for either service.
TRANSFER AGENT FEES. Fidelity Service Co. (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 all shareholder reports, except proxy statements. For the
period, the transfer agent fees were equivalent to an annualized rate of
.18% of average net assets.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES -
CONTINUED
ACCOUNTING FEES. FSC maintains the fund's accounting records. The fee is
based on the level of average net assets for the month plus out-of-pocket
expenses.
5. EXPENSE REDUCTIONS.
The fund has entered into an arrangement with its custodian whereby
interest earned on uninvested cash balances was used to offset a portion of
the fund's expenses. During the period, the fund's custodian fees were
reduced by $1,993.
6. PROPOSED REORGANIZATION.
The Board of Trustees of Fidelity Short-Term World Bond Fund has approved
an Agreement and Plan of Reorganization ("Agreement") between the fund and
Fidelity Short-Term Bond Fund ("Reorganization"). The Agreement provides
for the transfer of substantially all of the assets and the assumption of
substantially all of the liabilities of the fund to Fidelity Short-Term
Bond Fund in exchange solely for the number of shares of Fidelity
Short-Term Bond Fund having the same aggregate net asset value as the
outstanding shares of the fund at the close of business on the day that the
Reorganization is effective. The Reorganization can be consummated only if,
among other things, it is approved by the vote of a majority (as defined by
the Investment Company Act of 1940) of
outstanding voting securities of the fund. A Special Meeting of
Shareholders ("Meeting") of the fund will be held on October 11, 1996 to
vote on the Agreement. A detailed description of the proposed transaction
and voting information will be sent to shareholders of the fund in August
1996. If the Agreement is approved at the Meeting, the Reorganization is
expected to become effective on or about October 31, 1996.
Effective July 16, 1996, the fund's shares are no longer available for
purchase or exchange for new accounts of the fund. However, existing
shareholders of the fund can continue to purchase shares of the fund up to
the close of business on August 14, 1996, at which time the fund will be
closed to all share purchases except for reinvestment of dividends or other
distributions.
TO CALL FIDELITY

INVESTMENT ADVISER
Fidelity Management & Research
Company, Boston, MA
INVESTMENT SUB-ADVISERS
Fidelity Management & Research (U.K.) Inc., London, England
Fidelity Management & Research
(Far East) Inc., Tokyo, Japan
Fidelity International Investment Advisors
Fidelity International Investment Advisors (U.K.) Limited
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Fred L. Henning, Jr., Vice President
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox *
Phyllis Burke Davis *
Richard J. Flynn *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Edward H. Malone *
Marvin L. Mann *
Gerald C. McDonough *
Thomas R. Williams *
ADVISORY BOARD
William O. McCoy
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
CUSTODIAN
Brown Brothers Harriman & Co.
Boston, MA
FIDELITY'S TAXABLE BOND FUNDS
Capital & Income
Ginnie Mae
Global Bond
Government Securities
Intermediate Bond
Investment Grade Bond
Mortgage Securities
New Markets Income
Short-Intermediate Government
Short-Term Bond
Short-Term World Bond
Spartan(Registered trademark) Ginnie Mae
Spartan Government Income
Spartan High Income
Spartan Investment Grade Bond
Spartan Limited Maturity Government
Spartan Short-Intermediate Government
Spartan Short-Term Bond
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
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)
(registered trademark)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE