FIDELITY ADVISOR SERIES 8, N-30D, 1995-02-21

FIDELITY ADVISOR SERIES 8
N-30D, 1995-02-21

Previous: FIRST INVESTORS NEW YORK INSURED TAX FREE FUND INC, 24F-2NT, 1995-02-21

Next: PACCAR FINANCIAL CORP, 424B3, 1995-02-21

(2_FIDELITY_LOGOS)FIDELITY ADVISOR
(registered trademark)

EMERGING MARKETS
INCOME FUND - CLASS A AND CLASS B
ANNUAL REPORT
DECEMBER 31, 1994
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

FUND TALK 11 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 14 A summary of major shifts in the
fund's investments over the past
seven months.

INVESTMENTS 15 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 22 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 26 Notes to the financial statements.

REPORT OF INDEPENDENT 33 The auditors' opinion.
ACCOUNTANTS

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, THE FEDERAL
RESERVE
BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISK, INCLUDING
THE POSSIBLE LOSS
OF PRINCIPAL. NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A
BANK. FOR MORE
INFORMATION ON ANY FIDELITY ADVISOR FUND, INCLUDING CHARGES AND EXPENSES,
CONTACT YOUR
INVESTMENT PROFESSIONAL FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU
INVEST OR SEND
MONEY.
PRESIDENT'S MESSAGE

DEAR SHAREHOLDER:
The unsettling period that began for bond investors when the Federal
Reserve Board raised short-term interest rates in February continued in the
fourth quarter of 1994. The Board raised the federal funds rate - the rate
banks charge each other for overnight loans - five times from February
through August, taking it from 3.00% to 4.75%. A sixth increase in November
lifted the rate to 5.50%. The Fed rate hikes were intended to forestall
inflation that could result from an improving U.S. economy, and they led to
negative returns for many bond investments and below-average returns for
many stocks.
The volatility we have witnessed this year follows a period in which there
was a nearly perfect investing environment. Although there was a
late-summer rally in stocks and, to a lesser extent in bond markets, it is
impossible to predict where interest rates might go or what might happen in
the markets in the months ahead. That's why it probably is a good time to
again review your investment portfolio and how well it matches your goals.
Keeping in mind that the negative effects of rising rates on your bond
investments will only be "paper" losses unless you sell your shares,
staying in your bond fund may be appropriate. 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. As with any mutual fund, of course, there is no assurance that
a money market fund will achieve its goal, and money market funds are not
insured 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, as we have discussed here. A periodic investment
plan will not, of course, assure a profit or protect against a loss.
Remember to contact your investment professional if you need help with your
investments.
Best regards,
Edward C. Johnson 3d
ADVISOR EMERGING MARKETS INCOME FUND - CLASS A
PERFORMANCE: THE BOTTOM LINE

Advisor Emerging Markets Income - Class A 4.19% 2.47%

Advisor Emerging Markets Income - Class A
(incl. max. 4.75% sales charge) -0.76% -2.40%

JP Morgan Emerging Market Bond Index 1.58% n/a

Average General World Income Fund 0.40% n/a

Consumer Price Index 1.15% 2.04%

CUMULATIVE TOTAL RETURNS show Class A's performance in percentage terms
over a set period - in this case, six months, or since the fund began on
March 10, 1994. For example, if you had invested $1,000 in a fund that had
a 5% return over the past year, you would end up with $1,050. You can
compare Class A's returns to those of the JP Morgan Emerging Market Bond
Index - a broad gauge of bond performance in developing countries over the
past six months. To measure how Class A's performance stacked up against
its peers, you can compare it to the average general world income fund,
which currently reflects the performance of 150 funds tracked by Lipper
Analytical Services over the past 6 months. These benchmarks include
reinvested dividends and capital gains, if any, and exclude the effects of
sales charges. Comparing Class A's performance to the consumer price index
(CPI) helps show how the class did compared to inflation. (The CPI returns
begin on the month end closest to the fund's start date).
AVERAGE ANNUAL TOTAL RETURNS will appear once the fund is a year old.
$10,000 OVER LIFE OF FUND
Fidelity Advisor EmeJP Morgan Emerging M
03/31/94 9525.00 10000.00
04/30/94 9650.33 10005.00
05/31/94 10272.40 10695.35
06/30/94 9775.19 9834.37
07/31/94 9994.52 10076.30
08/31/94 11198.68 10796.75
09/30/94 11518.44 10902.56
10/31/94 11221.57 10594.02
11/30/94 10988.35 10702.08
12/30/94 10184.33 9989.32

$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity
Advisor Emerging Markets Income Fund - Class A on March 31, 1994, shortly
after the fund started, and paid the maximum 4.75% sales charge. As the
chart shows, by December 31, 1994, the value of your investment would have
grown to $10,184 - a 1.84% increase on your initial investment. For
comparison, look at how the JP Morgan Emerging Market Bond Index did over
the same period. With dividends reinvested, the same $10,000 investment
would have fallen to $9,989 - a 0.11% decrease.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, 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)

TOTAL RETURN COMPONENTS
PERIOD ENDED DECEMBER 31,
1994

LIFE OF
FUND

Dividend return 4.80%

Capital appreciation return -2.33%

Total return 2.47%

DIVIDEND returns and capital appreciation returns are both part of a class'
total return. A dividend return reflects the actual dividends paid by the
class. A capital appreciation return reflects both the amount paid by the
class to shareholders as capital gain distributions and changes in the
class' share price. Both returns assume the dividends or gains are
reinvested and exclude the effects of sales charges.
DIVIDENDS AND YIELD

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED DECEMBER 31, 1994 PAST PAST 6 LIFE OF
MONTH MONTHS FUND

Dividends per share 8.35(cents) 36.62(cents) 50.29(cents)

Annualized dividend rate 9.60% 6.89% 6.01%

30-day annualized yield 8.71% - -

</TABLE>

DIVIDENDS per share show the income paid by the class for a set period. If
you annualize this number, based on an average net asset value of $10.24
over the past month, $10.55 over the past six months and $10.29 over the
life of the fund, you can compare the class' 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 to compare
funds from different companies on an equal basis. The offering share price
used in the calculation of the yield includes the effect of Class A's
maximum 4.75% sales charge. If Fidelity had not reimbursed certain Class A
expenses during the period shown, the yield would have been 8.06%.
ADVISOR EMERGING MARKETS INCOME FUND - CLASS B
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, 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.
On June 30, 1994, the fund began offering Class B shares. All performance
information for Class B prior to June 30, 1994 reflects the performance of
Class A, and therefore does not reflect different Class B 12b-1 fee and
transfer agent fee arrangements (see Notes to the Financial Statements),
which if included, would have lowered Class B's performance. If Fidelity
had not reimbursed certain Class B expenses during the period shown, the
total returns and dividends would have been lower. Cumulative total returns
for Class B are listed on the following page.
CUMULATIVE TOTAL RETURNS
PERIOD ENDED DECEMBER 31, 1994 PAST 6 LIFE OF
MONTHS FUND

Advisor Emerging Markets Income - Class B 3.67% 1.96%

Advisor Emerging Markets Income - Class B
(incl. 4.00% contingent deferred sales charge) -0.26% -1.85%

JP Morgan Emerging Market Bond Index 1.58% n/a

Average General World Income Fund 0.40% n/a

Consumer Price Index 1.15% 2.04%

CUMULATIVE TOTAL RETURNS show Class B's performance in percentage terms
over a set period - in this case, six months, or since the fund began on
March 10, 1994. For example, if you had invested $1,000 in a fund that had
a 5% return over the past year, you would end up with $1,050. You can
compare Class B's returns to those of the JP Morgan Emerging Market Bond
Index - a broad gauge of the bond performance in developing countries over
the past six months. To measure how Class B's performance stacked up
against its peers, you can compare it to the average general world income
fund, which currently reflects the performance of 150 funds tracked by
Lipper Analytical Services over the past six months. These benchmarks
include reinvested dividends and capital gains, if any, and exclude the
effects of sales charges. Comparing Class B's performance to the consumer
price index (CPI) helps show how the class did compared to inflation. (The
CPI returns begin on the month end closest to the fund's start date).
AVERAGE ANNUAL TOTAL RETURNS will appear once the fund is a year old.
$10,000 OVER LIFE OF FUND
Fidelity Advisor EmeJP Morgan Emerging M
03/31/94 9600.00 10000.00
04/30/94 9726.32 10005.00
05/31/94 10353.28 10695.35
06/30/94 9852.16 9834.37
07/31/94 10060.02 10076.30
08/31/94 11262.67 10796.75
09/30/94 11586.03 10902.56
10/31/94 11290.00 10594.02
11/30/94 11038.14 10702.08
12/30/94 10213.29 9989.32

$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity
Advisor Emerging Markets Income Fund - Class B on March 31, 1994, shortly
after the fund started and paid the maximum 4% contingent deferred sales
charge upon redemption at the end of the period. As the chart shows, by
December 31, 1994, the value of your investment would have grown to $10,241
- - a 2.41% increase on your initial investment. For comparison, look at how
the JP Morgan Emerging Market Bond Index did over the same period. With
dividends reinvested, the same $10,000 investment would have fallen to
$9,989 - a 0.11% decrease.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, 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)
TOTAL RETURN COMPONENTS
PERIOD ENDED DECEMBER 31,
1994

LIFE OF
FUND

Dividend return 4.30%

Capital appreciation return -2.34%

Total return 1.96%

Dividends per share 7.67(cents) 31.41(cents)

Annualized dividend rate 8.81% 5.87%

30-day annualized yield 8.19% -

DIVIDENDS per share show the income paid by the class for a set period. If
you annualize this number, based on an average net asset value of $10.25
over the past month and $10.56 over the life of the fund, you can compare
the class' income distributions over these two 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. The offering share price used in the calculation of the
yield excludes the effect of Class B's contingent deferred sales charge. If
Fidelity had not reimbursed certain Class B expenses during the period
shown, the yield would have been 7.84%.
FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
Most global bond markets were
hurt by rising interest rates during
the 12 months ended December
31, 1994. Starting in February, the
Federal Reserve Board raised
U.S. short-term interest rates six
times in 1994. Higher interest
rates followed in many foreign
countries. Yields rose - and
prices fell - on most fixed-income
investments. The sell-off that
resulted was most pronounced in
emerging markets, where many
investors held highly leveraged
positions - investments made
with borrowed money. Emerging
market issues showed some
signs of strengthening in the
second half of the year, until
December 19, when Mexico
devalued the peso. This had a
corresponding negative effect on
other emerging markets. The J.P.
Morgan Emerging Markets Bond
Index fell 18.68% for the 12
months ended December 31,
1994. Developed markets
recovered somewhat during the
second half of the year, with bond
holders benefiting from higher
yields and lower volatility. The
Salomon Brothers World
Government Bond Index -
which measures bond market
performance in developed
nations and includes U.S. issues
- - rose 2.34% for the year. For
comparison, the Lehman
Brothers Aggregate Bond Index
- - a broad measure of taxable
bonds in the U.S. market -
returned -2.92% for the year.
NOTE TO SHAREHOLDERS:
Robert Citrone - who managed Fidelity Advisor Emerging Markets Income since
March 1994 - has left Fidelity. The following is an interview about the
fund's performance with Dwight Churchill, the head of Fidelity's taxable
bond fund group. Jonathan Kelly has taken over management of the fund on a
temporary basis. In the sidebar at the end of this report, Mr. Kelly
discusses his view of emerging markets.
Q. HOW DID THE FUND DO, DWIGHT?
A. It's done better than its peers. Since its inception on March 10, 1994,
through December 31, 1994, Fidelity Advisor Emerging Markets Income - Class
A and Class B shares had total returns of 2.47% and 1.96%, respectively.
For the best available comparison to its peers and to its bench mark - the
J.P. Morgan Emerging Market Bond Index - we can look at the period from
March 31, 1994, through December 31, 1994. During that time, the fund's
Class A and Class B shares returned 6.92% and 6.39%, respectively. The
average general world income fund tracked by Lipper Analytical Services
returned -1.27% during the same period, while the J.P. Morgan Emerging
Market Bond Index fell 0.11%.
Q. WHAT HELPED THE FUND TOP THE AVERAGES?
A. The fund's investments in Brazil, Ecuador and Argentina were a big help.
These were among the top markets represented in the fund, and they did well
through the second half of the year. Bulgaria was another country that was
a positive influence. Bulgaria is an improving credit story, but not well
understood by the rest of the market. Bulgaria is starting from a low base,
but I believe the country has sufficient support from the World Bank and
the International Monetary Fund to move forward with reforms. The fund also
had a lot of floating rate debt, which reduced the risk that rising
interest rates would hurt the fund.
Q. WHY IS THAT?
A. As interest rates rose, the floating rate bonds did not get hurt as
much. That's because the coupons - the interest the bonds pay - reset
either every 30 days or every six months. So, as rates were rising, the
coupons were resetting. Remember, as interest rates rise, bond prices fall,
so these floaters did not decline in the same way fixed-rate bonds did.
Q. LOOKING BACK OVER THE PAST SIX MONTHS, WHAT COULD HAVE BEEN DONE
DIFFERENTLY?
A. Most emerging market investors wish they could have foreseen the dire
consequences of the Mexican situation, although the devaluation came as a
complete surprise.
Q. HOW DID THOSE PROBLEMS AFFECT THE FUND?
A. The fund did not have many peso-denominated investments or exposure to
Mexico. However, the problems there - related to the government's
devaluation of the currency - had a negative affect on the fund's
investments in other Latin American countries such as Brazil, Argentina and
Ecuador. Even though these other countries' economies and currencies were
more solid, the Mexican crisis had a negative impact during the last part
of December.
Q. WHY IS MEXICO SO INFLUENTIAL?
A. It's one of the largest emerging market countries, a core emerging
market with a lot of outstanding debt. It is seen as a bellwether country
and is one of the highest-rated countries in the emerging markets. The
general consensus was that its debt was going to achieve an
investment-grade rating, and that it would help pull up the rest of the
Latin American markets. Unfortunately, this peso crisis is a setback. Over
time, there may be a "de-linking" of Latin American markets, as countries
demonstrate their independence by continuing economic reforms designed to
stimulate growth and lower inflation. But for now, when there are problems
in Mexico, the rest of Latin America is affected.
Q. WHAT'S YOUR OUTLOOK GOING FORWARD?
A. It's been a difficult year for fixed-income investments, especially in
the emerging markets. It looks like 1995 will be starting out with some
challenges. However, emerging market bond prices are quite compelling now,
and there have been some very productive years in the past. It appears
market fundamentals - such as growth rates, inflation and credit quality -
have improved and will continue to improve.

FUND FACTS
GOAL: high current income,
followed by capital
appreciation, by investing
largely in bonds and other
fixed-income securities from
countries with emerging
markets
START DATE: March 10, 1994
SIZE: as of December 31,
1994, more than $35 million
MANAGER: Jonathan Kelly,
since February 1995; joined
Fidelity in 1991
(checkmark)
JONATHAN KELLY ON
EMERGING MARKETS:
"Looking forward, I'd
distinguish between short-
and long-term outlooks. Short
term, I am somewhat cautious
as a result of the Mexican
peso devaluation and its
aftermath. Mexico has been
the benchmark country in
Latin America for the past
few years and its demise has
been difficult for emerging
markets worldwide. And
although the rescue package
organized by the U.S. and the
International Monetary
Fund has helped to reduce
default risk in Mexico, the
country still faces significant
challenges. I anticipate that
market volatility could remain
high as the Mexican shock is
digested.
"Longer term, I believe
emerging markets will
continue to produce growth
rates that exceed those in
developed countries. And
those countries that pursue
economic reform will see their
creditworthiness improve and
will offer investors attractive
rates of return. I also believe
that over time, the market will
effectively distinguish the
countries that successfully
reform and those that do not.
For example, should Mexico
continue to stumble, it would
not preclude Argentina or
Brazil from distinguishing
themselves if it successfully
continues down the path of
reform."
INVESTMENT CHANGES

TOP COUNTRIES AS OF DECEMBER 31, 1994
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
MAY 31, 1994

Argentina 16.2 25.5

Ecuador 11.8 6.4

Bulgaria 10.8 0

Panama 9.0 0

Mexico 6.4 16.5

TOP COUNTRIES ARE BASED ON THE LOCATION OF THE ISSUER OF EACH SECURITY,
INDICATING WHERE THE FUND IS EXPOSED TO POLITICAL AND CREDIT RISKS. THE
FUND'S LARGEST POSITION AS OF DECEMBER 31 WAS IN SECURITIES OF ARGENTINEAN
ISSUERS.
AVERAGE YEARS TO MATURITY AS OF DECEMBER 31, 1994
MAY 31, 1994

Years 8.6 12.8

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 DECEMBER 31, 1994 AS OF MAY 31, 1994
26
Row: 1, Col: 1, Value: 38.3
Row: 1, Col: 2, Value: 6.9
Row: 1, Col: 3, Value: 50.3
Row: 1, Col: 4, Value: 4.5
Row: 1, Col: 1, Value: 30.4
Row: 1, Col: 2, Value: 3.1
Row: 1, Col: 3, Value: 51.0
Row: 1, Col: 4, Value: 15.5
Corporate bonds 4.5%
Government
obligations 50.3%
Stocks 6.9%
Short-term and
other investments 38.3%
Corporate bonds 15.5%
Government
obligations 51.0%
Stocks 3.1%
Short-term and
other investments 30.4%
QUALITY DIVERSIFICATION
(MOODY'S RATINGS) % OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
AS OF DECEMBER 31, AS OF MAY 31, 1994
1994

Aaa, Aa, A 0.8 0.0

Baa 0.0 0.0

Ba 8.9 19.6

B 16.1 9.2

Caa, Ca, C 0.0 0.0

Nonrated 37.7 33.3

THIS CHART EXCLUDES SHORT-TERM INVESTMENTS. UNRATED DEBT SECURITIES THAT
ARE EQUIVALENT TO BA AND BELOW AT DECEMBER 31, 1994 ACCOUNT FOR 37.4% OF
THE FUND'S INVESTMENTS.
INVESTMENTS DECEMBER 31, 1994

Showing Percentage of Investment in Securities

CORPORATE BONDS - 4.5%
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (B) (NOTE 1)
CONVERTIBLE BONDS - 1.8%
ARGENTINA - 0.1%
Banco De Galicia Y Buenos Aires 7%, 8/01/02 B1 $ 75,000 $ 57,750
GRAND CAYMAN (UK OVERSEAS TER) - 0.3%
Bank Of Asia Public Co. Ltd. 3 3/4%, 2/09/04 - 160,000 143,200
INDIA - 0.4%
Nippon Denro Ispat euro 3%, 4/1/01 (d) - 220,000 149,050
MALAYSIA - 0.4%
Technology Resources Industries BHD 2 3/4%,
11/28/04 (d) - 150,000 143,250
PHILIPPINES - 0.3%
International Container Term Services, Inc.
unsecured conv. 6%, 2/19/00 (d) - 100,000 117,000
THAILAND - 0.3%
Bangkok Bank Public Ltd. euro
3 1/4%, 3/3/04 (d) - 150,000 136,500
TOTAL CONVERTIBLE BONDS 746,750
NONCONVERTIBLE BONDS - 2.7%
ARGENTINA - 0.1%
Brid Sapic euro 11 3/4%, 2/24/97 - 50,000 49,188
INDONESIA - 0.5%
Indorayon Yankee 9 1/8%, 10/15/00 BB 240,000 196,800
MEXICO - 0.7%
Banamex SA 11 1/4%, 12/02/96 (d) Ba2 MXN 1,730,000 290,640
NIGERIA - 1.4%
Central Bank of Nigeria Promissory
Note 5.092% 1/5/10 - 2,000,000 594,760
TOTAL NONCONVERTIBLE BONDS 1,131,388
TOTAL CORPORATE BONDS
(Cost $2,205,644) 1,878,138
GOVERNMENT OBLIGATIONS - 50.3% (F)
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (B) (NOTE 1)
ARGENTINA - 14.6%
Argentina Republic:
BOCON
0%, 4/1/01 B1 $ 1,204,299 $ 764,578
3.1875%, 4/1/07 B1 11,163,528 5,151,321
Peso Letras 0%, 2/24/95 - ARP 150,000 145,318
6,061,217
BRAZIL - 2.1%
Brazil Federative Republic:
euro 6 3/4%, 4/15/12 (e) - 250,000 148,438
8%, 4/15/14 B2 BRR 1,530,000 732,488
880,926
BULGARIA - 10.8%
Republic of Bulgaria (e):
6.0625%, 7/28/11 - 3,500,000 1,465,625
6.0625%, 7/28/24 Tranche A - 6,500,000 3,022,500
4,488,125
ECUADOR - 8.8%
Republic of Ecuador:
past due interest (d)(g) - 6,750,000 2,480,625
30 year discount bonds (d)(g) - 2,000,000 1,080,000
past due interest (d) - 115,000 78,200
3,638,825
MEXICO - 3.6%
Mexican Government Brady 6 1/4%, 12/31/19 Ba3 2,750,000 1,485,000
Mexico Value Recovery (rights) (a) - 2,750,000 28
1,485,028
PANAMA - 5.8%
Republic of Panama 7 1/8%, 5/10/02 - 2,950,000 2,389,500
GOVERNMENT OBLIGATIONS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (B) (NOTE 1)
VENEZUELA - 4.6%
Republic of Venezuela (e):
Flirb:
A, 7%, 3/31/07 Ba2 $ 500,000 $ 230,000
B, 7%, 3/31/07 Ba2 1,500,000 690,000
7%, 3/31/20 (e) Ba3 2,000,000 1,010,000
1,930,000
TOTAL GOVERNMENT OBLIGATIONS
(Cost $22,873,456) 20,873,621
COMMON STOCKS - 6.4%
SHARES
ARGENTINA - 1.4%
Alpargatas SA Industrias Y Comercial (Reg.) (a) 280,000 193,192
Banco del Sequia Argentina Class B (a) 20,000 46,998
Banco del Sud SA 10,000 75,996
Citicorp Equity Inv. Class B 13,300 56,522
Interamericania de Auto Ord. 10,000 87,496
Mirgor Sacifia Class C sponsored ADR (a)(d) 22,220 122,210
582,414
BRAZIL - 1.6%
Coteminas PN 264,600 90,594
Klabin Industria de Papel e Celulose PN 82,000 121,983
Iochpe Maxion PN Ord. 549,000 382,422
Minas Gerais State (warrants) (a)(d) 500 30,000
Telebras PN 223,410 9,998
634,997
MALAYSIA - 0.2%
Mycom BHD 55,000 90,033
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE1)
MEXICO - 2.1%
Banacci de CV Class C 14,000 $ 41,160
Cemex SA, Series B 56,000 291,760
Cifra SA Class C 40,000 76,000
Elektra (Grupo) SA US CPO (a) 18,000 128,520
Empresas Ica Sociedad Controladora SA de CV sponsored
ADR representing Ord. (Part. Cert.) 4,000 62,000
Fondo Opcion SA De CV CL2 Series B (a) 50,000 104,000
Grupo Embotellador de Mexico CPO GDR (a) 1,800 25,875
Grupo Carso SA de CV Class A-1 10,000 73,000
Tolmex SA Class B2 7,600 63,840
866,155
PERU - 1.1%
Southern Peru Copper Corp. (a) 83,608 467,283
VENEZUELA - 0.0%
Republic of Venezuela Oil Recovery Rights (a) 14,280 --
TOTAL COMMON STOCKS
(Cost $3,408,737) 2,640,882
NONCONVERTIBLE PREFERRED STOCKS - 0.5%
BRAZIL - 0.5%
Cosipa (CIA Sidurg Paulista) B (Cost $223,837) 77,000 224,091
OTHER SECURITIES - 10.0%
PRINCIPAL
AMOUNT (B)
ECUADOR - 3.0%
Republic of Ecuador (a):
loan participation under 1983 and 1984
extension and refinancing agreements $ 750,000 346,875
loan participation under 1984 consolidation
agreement(e) 500,000 240,625
loan participation under 1985 multi-year
refinancing agreement JPY 100,000,000 439,940
loan participation 500,000 231,250
1,258,690
OTHER SECURITIES - CONTINUED
PRINCIPAL VALUE
AMOUNT (B) (NOTE 1)
PANAMA - 3.2%
Republic of Panama (a):
loan participation (g) JPY 237,023,000 $ 1,164,328
loan participation refinanced under credit
agreement(g) JPY 29,400,000 148,843
1,313,171
PERU - 0.5%
Empressa de Electricidad del Peru SA loan
participation (a) 410,000 215,250
RUSSIA - 3.3%
Bank for Foreign Economic Affairs of the USSR
(Vneshekonombank) loan participation (a)(g) CHF 4,500,000 893,812
Bank for Foreign Economic Affairs of the USSR
(Vneshekonombank) loan participation (a)(g) 1,000,000 275,000
Bank for Foreign Economic Affairs of the USSR
(Vneshekonombank) loan participation (a)(g) JPY 60,000,000 135,329
International Bank for Economic Cooperation
(Russia) loan participation (a) 250,000 67,500
1,371,641
TOTAL OTHER SECURITIES
(Cost $4,428,323) 4,158,752
REPURCHASE AGREEMENTS - 28.3%
MATURITY
AMOUNT
Investments in repurchase agreements,
(U.S. Treasury obligations), in a joint
trading account at 5.77%, dated
12/30/94 due 1/3/95 $ 11,747,527 11,740,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $44,879,997) $ 41,515,484
FORWARD FOREIGN CURRENCY CONTRACTS
SETTLEMENT UNREALIZED
DATES VALUE GAIN/(LOSS)
CONTRACTS TO BUY
1,354,950 BRR 1/31/95 $ 1,562,803 $ 62,803
(Payable amount $1,500,000)
THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 3.8%
CONTRACTS TO SELL
39,912,000 JPY 2/16/95 $ 402,239 6,905
1,044,080 CHF 2/16/95 799,951 10,041
TOTAL CONTRACTS TO SELL
(Receivable amount $1,219,136) $ 1,202,190 16,946
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 2.9%
$ 79,749
CURRENCY ABBREVIATIONS
ARP - Argentine peso
BRR - Brazilian real
JPY - Japanese yen
MXN - Mexican peso
CHF - Swiss franc
LEGEND
(a) Non-income producing
(b) Principal amount is stated in United States dollars unless otherwise
noted.
(c) Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
(d) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $4,627,475 or 13.2% of net
assets.
(e) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(f) 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.
(g) Security purchased on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
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 0.8% AAA, AA, A 0.0%
Baa 0.0% BBB 0.0%
Ba 8.9% BB 13.5%
B 16.1% B 4.6%
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 37.7% including long-term debt
categorized as other securities. FMR has determined that unrated debt
securities that are lower quality account for 37.4% of the total value of
investment in securities.
INCOME TAX INFORMATION
At December 31, 1994, the aggregate cost of investment securities for
income tax purposes was $44,939,580. Net unrealized depreciation aggregated
$3,424,096, of which $363,607 related to appreciated investment securities
and $3,787,703 related to depreciated investment securities.
The fund intends to elect to defer to its fiscal year ending December 31,
1995 $832,000 of losses recognized during the period November 1, 1994 to
December 31, 1994.
INDUSTRY DIVERSIFICATION
As a Percentage of Total Value
of Investment in Securities (Unaudited)
Basic Industries 3.1%
Construction & Real Estate 1.3
Durables 2.3
Energy 0.1
Finance 3.3
Government Obligations 60.4
Holding Companies 0.3
Nondurables 0.1
Repurchase Agreements 28.3
Retail & Wholesale 0.5
Utilities 0.3
100.0%
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS DECEMBER 31, 1994

Investment in securities, at value (including repurchase $ 41,515,484
agreements of $11,740,000) (cost $44,879,997) -
See accompanying schedule

Cash 66,760

Receivable for investments sold 1,279,348
Regular delivery

Delayed delivery 1,180,000

Unrealized appreciation on foreign currency contracts 79,749

Receivable for fund shares sold 618,806

Interest receivable 551,138

Other receivables 14,105

Receivable from investment adviser for expense 65,053
reductions

TOTAL ASSETS 45,370,443

LIABILITIES

Payable for investments purchased $ 1,819,907
Regular delivery

Delayed delivery 7,712,442

Payable for fund shares redeemed 536,230

Accrued management fee 27,205

Distribution fees payable 11,671

Other payables and accrued expenses 200,111

TOTAL LIABILITIES 10,307,566

NET ASSETS $ 35,062,877

Net Assets consist of:

Paid in capital $ 39,594,452

Distributions in excess of net investment income (541,145)

Accumulated undistributed net realized gain (loss) on (721,426)
investments and foreign currency transactions

Net unrealized appreciation (depreciation) on (3,269,004)
investments and assets and liabilities in foreign
currencies

NET ASSETS $ 35,062,877

CLASS A: $9.52
NET ASSET VALUE, and redemption price per share
($30,028,773 (divided by) 3,155,827 shares)

Maximum offering price per share (100/95.25 of $9.52) $9.99

CLASS B: $9.52
NET ASSET VALUE, offering price and redemption price
per share ($5,034,104 (divided by) 528,602 shares) A

</TABLE>

A REDEMPTION PRICE PER SHARE IS EQUAL TO NET ASSET VALUE LESS ANY
APPLICABLE CONTINGENT DEFERRED SALES CHARGE.
STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
MARCH 10, 1994 (COMMENCEMENT OF OPERATIONS) TO DECEMBER 31, 1994

INVESTMENT INCOME $ 6,786
Dividends

Interest 1,416,104

TOTAL INCOME 1,422,890

EXPENSES

Management fee $ 122,088

Transfer agent fees - Class A 58,079

Transfer agent fees - Class B 11,261

Distribution fees - Class A 39,935

Distribution fees - Class B 12,986

Accounting fees and expenses 36,412

Non-interested trustees' compensation 42

Custodian fees and expenses 22,964

Registration fees - Class A 52,251

Registration fees - Class B 29,867

Audit 30,932

Legal 2,645

Miscellaneous 151

Total expenses before reductions 419,613

Expense reductions (146,297) 273,316

NET INVESTMENT INCOME 1,149,574

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

Investment securities 89,853

Foreign currency transactions (19,341) 70,512

Change in net unrealized appreciation (depreciation) on:

Investment securities (3,364,513)

Assets and liabilities in foreign currencies 95,509 (3,269,004)

NET GAIN (LOSS) (3,198,492)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ (2,048,918)
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C>
MARCH 10, 1994
(COMMENCEMENT OF
OPERATIONS) TO
DECEMBER 31,
1994

INCREASE (DECREASE) IN NET ASSETS

Operations $ 1,149,574
Net investment income

Net realized gain (loss) 70,512

Change in net unrealized appreciation (depreciation) (3,269,004)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (2,048,918)

Distributions to shareholders from:
Net investment income

Class A (757,141)

Class B (58,330)

In excess of net investment income

Class A (322,864)

Class B (24,873)

Net realized gain

Class A (44,276)

Class B (4,694)

In excess of net realized gain

Class A (1,148,710)

Class B (121,779)

</TABLE>

TOTAL DISTRIBUTIONS (2,482,667)

<TABLE>
<CAPTION>
<S> <C>
Share transactions - net increase (decrease) 39,594,462

TOTAL INCREASE (DECREASE) IN NET ASSETS 35,062,877

NET ASSETS

Beginning of period -

End of period (including under (over) distribution of net investment $ 35,062,877
income of $(541,145))

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C>
CLASS A CLASS B
PERIOD ENDED PERIOD ENDED
DECEMBER 31, DECEMBER 31,
1994 D 1994 E

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 10.000 $ 9.700

Income from Investment Operations

Net investment income .356 .167

Net realized and unrealized gain (loss) on investments (.073) .227

Total from investment operations .283 .394

Less Distributions

From net investment income (.353) (.220)

In excess of net investment income (.150) (.094)

From net realized gain (.010) (.010)

In excess of net realized gain (.250) (.250)

Total distributions (.763) (.574)

Net asset value, end of period $ 9.520 $ 9.520

TOTAL RETURN B, C 2.47% 3.67%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 30,029 $ 5,034

Ratio of expenses to average net assets 1.50% A 2.25% A

Ratio of expenses to average net assets before 2.15% A 2.60% A,
expense reductions F

Ratio of net investment income to average net assets 6.60% A 5.86% A

Portfolio turnover 354% A 354% A

</TABLE>

A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND 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 FOR THE PERIOD MARCH 10, 1994 (COMMENCEMENT OF SALE OF CLASS A SHARES) TO
DECEMBER 31, 1994.
E FOR THE PERIOD JUNE 30, 1994 (COMMENCEMENT OF SALE OF CLASS B SHARES) TO
DECEMBER 31, 1994.
F LIMITED IN ACCORDANCE WITH A STATE EXPENSE LIMITATION.
NOTES TO FINANCIAL STATEMENTS
For the period ended December 31, 1994

1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Advisor Emerging Markets Income Fund (the fund) is a fund of
Fidelity Fidelity Advisor Series VIII (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 fund offers Class A and Class B shares, each of which has equal rights
as to assets and voting privileges. Each class has exclusive voting rights
with respect to its distribution plan. The fund commenced sale of Class A
shares on March 10, 1994 and Class B shares on June 30, 1994. Investment
income, realized and unrealized capital gains and losses, and the common
expenses of the fund are allocated on a pro-rata basis to each class based
on the relative net assets of each class to the total net assets of the
fund. Each class of shares differs in its respective distribution, transfer
agent, registration, and certain other class-specific fees and expenses.
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.
Reported 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
not segregated in the Statement of Operations from the effects of changes
in market prices of those securities, but are included with the net
realized and unrealized gain or loss on investment securities.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
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 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. Dividend income is recorded on the ex-dividend date,
except certain dividends from foreign securities where the ex-dividend date
may have passed are recorded as soon as the fund is informed of the
ex-dividend date. Interest income is accrued as earned. Investment income
is recorded net of foreign taxes withheld where recovery of such taxes is
uncertain.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are declared daily and paid
monthly from net investment income. Income dividends are declared
separately for each class, while capital gain distributions are declared at
the fund level and allocated to each class on a pro-rata basis based on the
number of shares held by each class 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 are primarily due to differing treatments for
foreign currency transactions and market discount.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect net investment income per share. Distributions in excess of net
investment income may include temporary book and tax basis differences
which will reverse in a subsequent period.
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
2. OPERATING POLICIES -
CONTINUED
FORWARD FOREIGN CURRENCY
CONTRACTS - CONTINUED
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 of offset, otherwise gain (loss) is recognized on
settlement date.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. The fund's investment
adviser, Fidelity Management & Research Company (FMR), is responsible for
determining that the value of these underlying securities remains at least
equal to the resale price.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other affiliated
entities of 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, and are collateralized by U.S. Treasury or Federal Agency
obligations.
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 fund
identifies securities as segregated in its custodial records with a value
at least equal to the amount of the purchase commitment.
3. JOINT TRADING ACCOUNT.
At the end of the period, the fund had 20% or more of its total investments
in repurchase agreements through a joint trading account. These repurchase
agreements were with entities whose creditworthiness has been reviewed and
found satisfactory by FMR. The repurchase agreements were dated December
30, 1994 and due January 3, 1995. The maturity values of the joint trading
account investments were $11,747,527 at 5.77%. The investments in
repurchase agreements through the joint trading account are summarized as
follows:
SUMMARY OF JOINT TRADING
Number of dealers or banks 23
Maximum amount with one dealer or bank 19.4%
Aggregate principal amount of agreements $15,687,225,000
Aggregate maturity amount of agreements $15,687,284,038
Aggregate market value of collateral $16,045,330,965
Coupon rates of collateral 3 7/8% to 15 3/4%
Maturity dates of collateral 1/3/95 to 11/15/24
4. PURCHASES AND SALES
OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $79,931,082 and $47,094,998, respectively.
5. 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 .1325% to
.3700% for the period March 9, 1994 to July 31, 1994 and .1200% to .3700%
for the period August 1, 1994 to December 31, 1994. In the event that these
rates were lower than the contractual rates in effect during those periods,
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.
5. FEES AND OTHER
TRANSACTIONS WITH AFFILIATES -
CONTINUED
SUB-ADVISER FEE. FMR, on behalf of the fund, entered into sub-advisory
agreements with affiliates of FMR. In addition, one of the sub-advisers,
Fidelity International Investment Advisors (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.
DISTRIBUTION AND SERVICE PLAN. In accordance with Rule 12b-1 of the 1940
Act, the Trustees have adopted separate distribution plans with respect to
the fund's Class A shares ("Class A Plan") and Class B shares ("Class B
Plan"), pursuant to which the fund pays Fidelity Distributors Corporation
(FDC), an affiliate of FMR, a distribution and service fee. This fee is
based on annual rates of .25% and 1.00% (of which .75% represents a
distribution fee and .25% represents a shareholder service fee) of the
average net assets of the Class A and Class B shares, respectively. For the
period, the fund paid FDC $39,935 and $12,986 under the Class A Plan and
Class B Plan, respectively, of which $31,604 and $3,215 were paid to
securities dealers, banks and other financial institutions for the
distribution of Class A and Class B shares, and providing shareholder
support services.
In addition, FMR or FDC may use its resources to pay administrative and
promotional expenses related to the sale of the fund's shares. Subject to
the approval of the Board of Trustees, the Plans also authorize payments to
third parties that assist in the sale of the fund's shares or render
shareholder support services. No payments were made to third parties under
the Plan during the period.
SALES LOAD. FDC receives a front-end sales charge of up to 4.75% for
selling Class A shares of the fund. For the period, FDC received sales
charges of $406,046 on sales of Class A shares of the fund, of which
$346,912 was paid to securities dealers, banks, and other financial
institutions. FDC also receives the proceeds of a contingent deferred sales
charge levied on Class B share redemptions occurring within five years of
purchase. The charge is based on declining rates which range from 4% to 1%
of the lesser of the cost of shares at the initial date of purchase or the
net asset value of the redeemed shares, excluding any reinvested dividends
and capital gains. For the period, FDC received contingent deferred sales
charges of $2,877 on Class B share redemptions from the fund. When Class B
shares are sold, FDC pays commissions from its own resources to dealers
through which the sales are made.
5. FEES AND OTHER
TRANSACTIONS WITH AFFILIATES -
CONTINUED
TRANSFER AGENT FEES. State Street Bank and Trust Company (State Street) is
the transfer, dividend disbursing, and shareholder servicing agent for the
fund's Class A shares, while Fidelity Investments Institutional Operations
Company (FIIOC), an affiliate of FMR (collectively, with State Street,
referred to as the Transfer Agents) acts in that capacity for the fund's
Class B shares. The Transfer Agents receive fees based on the type, size,
number of accounts, and the number of transactions made by shareholders of
the respective classes of the fund. With respect to the Class A shares,
State Street has delegated certain transfer, dividend paying, and
shareholder services to FIIOC for which FIIOC receives its allocable share
of all such fees. FIIOC pays for typesetting, printing and mailing of all
shareholder reports, except proxy statements.
ACCOUNTING FEES. Fidelity Service Co. (FSC), an affiliate of FMR, 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.
BROKERAGE COMMISSIONS. The fund placed a portion of its portfolio
transactions with brokerage firms which are affiliates of FMR. The
commissions paid to these affiliated firms were $184 for the period.
6. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse the fund's operating expenses
(excluding interest, taxes, brokerage commissions and extraordinary
expenses) above an annual rate of 1.50% and 2.25% of average net assets for
Class A and Class B, respectively. For the period, the reimbursement
reduced expenses by $105,549 and $40,748 for Class A and Class B,
respectively.
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. SHARE TRANSACTIONS.
Share transactions for both classes were as follows:
SHARES DOLLARS
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31
1994 1994
CLASS A A
Shares sold 5,699,727 $ 60,093,354
Reinvestment of distributions 203,573 2,117,041
Shares redeemed (2,747,473) (28,236,220)
Net increase (decrease) 3,155,827 $ 33,974,175
CLASS B B
Shares sold 545,353 $ 5,812,924
Reinvestment of distributions 18,090 187,018
Shares redeemed (34,841) (379,655)
Net increase (decrease) 528,602 $ 5,620,287
A SHARE TRANSACTIONS FOR CLASS A ARE FOR THE PERIOD MARCH 10, 1994
(COMMENCEMENT OF SALE OF SHARES) TO DECEMBER 31, 1994.
B SHARE TRANSACTIONS FOR CLASS B ARE FOR THE PERIOD JUNE 30, 1994
(COMMENCEMENT OF SALE OF SHARES) TO DECEMBER 31, 1994
REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees of Fidelity Advisor Series VIII and the Shareholders of
Fidelity Advisor Emerging Markets Income Fund:
We have audited the accompanying statement of assets and liabilities of
Fidelity Advisor Series VIII: Fidelity Advisor Emerging Markets Income
Fund, including the schedule of portfolio investments, as of December 31,
1994, and the related statement of operations and the statement of changes
in net assets for the period March 10, 1994 (commencement of operations) to
December 31, 1994 and the financial highlights for the period March 10,
1994 (commencement of operations) to December 31, 1994 (Class A) and for
the period June 30, 1994 (commencement of sale of Class B shares) to
December 31, 1994 (Class B). These financial statements and financial
highlights are the responsibility of the fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1994 by correspondence with the
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Advisor Series VIII: Fidelity Advisor Emerging Markets Income
Fund as of December 31, 1994, the results of its operations and the
statements of changes in net assets for the period March 10, 1994
(commencement of operations) to December 31, 1994 and the financial
highlights for the period March 10, 1994 (commencement of operations) to
December 31, 1994 (Class A) and for the period June 30, 1994 (commencement
of sale of Class B shares) to December 31, 1994 (Class B), in conformity
with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
February 9, 1995

INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Arthur S. Loring, Secretary
Gary L. French, 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
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
State Street Bank and Trust Company
Boston, MA - Class A
Fidelity Investments Institutional
Operations Company
Boston, MA - Class B
CUSTODIAN
Chase Manhattan Bank, N.A.
New York, NY
GROWTH FUNDS
Fidelity Advisor Overseas Fund
Fidelity Advisor Equity Portfolio Growth
Fidelity Advisor Global Resources Fund
Fidelity Advisor Growth
Opportunities Fund
Fidelity Advisor Strategic
Opportunities Fund
GROWTH AND INCOME FUNDS
Fidelity Advisor Equity Portfolio Income
Fidelity Advisor Income & Growth Fund
INCOME FUNDS
Fidelity Advisor Emerging Markets Income Fund
Fidelity Advisor High Yield Fund
Fidelity Advisor Strategic Income Fund
Fidelity Advisor Government Investment Fund
Fidelity Advisor Limited Term Bond Fund
Fidelity Advisor Short Fixed-Income Fund
TAX-EXEMPT FUNDS
Fidelity Advisor High Income
Municipal Fund
Fidelity Advisor Limited Term Tax-Exempt Fund
Fidelity Advisor Short-Intermediate Tax-Exempt Fund
MONEY MARKET FUNDS
Daily Money Fund: Money Market Portfolio
Daily Money Fund: U.S. Treasury Portfolio
Daily Tax-Exempt Money Fund
(REGISTERED TRADEMARK)
(registered trademark)
DISTRIBUTIONS

The Board of Trustees of Fidelity Advisor Emerging Markets Income Fund
voted to pay to shareholders of record at the opening of business on record
date, the following distributions derived from capital gains realized from
sales of portfolio securities, and dividends derived from net investment
income:
PAY DATE RECORD DATE DIVIDENDS CAPITAL GAINS
Class A xx/xx/xx xx/xx/xx $__ $__
Class B xx/xx/xx xx/xx/xx $__ $__

(2_FIDELITY_LOGOS)FIDELITY ADVISOR
(registered trademark)

STRATEGIC INCOME -
CLASS A AND CLASS B
ANNUAL REPORT
DECEMBER 31, 1994
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

FUND TALK 8 The manager's review of fund
performance, strategy and outlook.

INVESTMENT SUMMARY 11 A summary of the fund's
investments.

INVESTMENTS 12 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 19 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 23 Notes to the financial statements.

REPORT OF INDEPENDENT 28 The auditors' opinion.
ACCOUNTANTS

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, THE
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT
RISK,
INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. NEITHER THE FUND NOR FIDELITY
DISTRIBUTORS
CORPORATION IS A BANK. FOR MORE INFORMATION ON ANY FIDELITY ADVISOR FUND,
INCLUDING
CHARGES AND EXPENSES, CONTACT YOUR INVESTMENT PROFESSIONAL FOR A FREE
PROSPECTUS.
READ
IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE

DEAR SHAREHOLDER:
The unsettling period that began for bond investors when the Federal
Reserve Board raised short-term interest rates in February continued in the
fourth quarter of 1994. The Board raised the federal funds rate - the rate
banks charge each other for overnight loans - five times from February
through August, taking it from 3.00% to 4.75%. A sixth increase in November
lifted the rate to 5.50%. The Fed rate hikes were intended to forestall
inflation that could result from an improving U.S. economy, and they led to
negative returns for many bond investments and below-average returns for
many stocks.
The volatility we have witnessed this year follows a period in which there
was a nearly perfect investing environment. Although there was a
late-summer rally in stocks and, to a lesser extent in bond markets, it is
impossible to predict where interest rates might go or what might happen in
the markets in the months ahead. That's why it probably is a good time to
again review your investment portfolio and how well it matches your goals.
Keeping in mind that the negative effects of rising rates on your bond
investments will only be "paper" losses unless you sell your shares,
staying in your bond fund may be appropriate. 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. As with any mutual fund, of course, there is no assurance that
a money market fund will achieve its goal, and money market funds are not
insured 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, as we have discussed here. A periodic investment
plan will not, of course, assure a profit or protect against a loss.
Remember to contact your investment professional if you need help with your
investments.
Best regards,
Edward C. Johnson 3d
ADVISOR STRATEGIC INCOME FUND - CLASS A
PERFORMANCE: THE BOTTOM LINE

Advisor Strategic Income - Class A 0.17%

Advisor Strategic Income - Class A
(incl. max. 4.75% sales charge) -4.58%

Consumer Price Index 0.13%

CUMULATIVE TOTAL RETURNS show Class A's performance in percentage terms
over a set period - in this case, since the fund began on October 31, 1994.
For example, if you had invested $1,000 in a fund that had a 5% return over
the past year, you would end up with $1,050. Comparing Class A's
performance to the consumer price index (CPI) helps show how the class did
compared to inflation. (The CPI return begins on the month end closest to
the fund's start date).
AVERAGE ANNUAL TOTAL RETURNS and the growth of a hypothetical $10,000
investment in the fund will appear once the fund is a year old.

TOTAL RETURN COMPONENTS
PERIOD ENDED DECEMBER 31,
1994

LIFE OF
FUND

Dividend return 0.97%

Capital appreciation return -0.80%

Total return 0.17%

Dividends per share 5.74(cents)

Annualized dividend rate 6.77%

30-day annualized yield 7.67%

DIVIDENDS per share show the income paid by the class for a set period. The
annualized dividend rate is based on an average net asset value of $9.99
over the past month. 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 to compare
funds from different companies on an equal basis. The offering share price
used in the calculation of the yield includes the effect of Class A's
maximum 4.75% sales charge. If Fidelity had not reimbursed certain Class A
expenses during the period shown, the yield would have been 5.69%.
ADVISOR STRATEGIC INCOME FUND - CLASS B
PERFORMANCE: THE BOTTOM LINE

Advisor Strategic Income - Class B -0.06%

Advisor Strategic Income - Class B
(incl. 4.00% contingent deferred sales charge) -4.03%

Consumer Price Index 0.13%

CUMULATIVE TOTAL RETURNS show Class B's performance in percentage terms
over a set period - in this case, since the fund began on October 31, 1994.
For example, if you had invested $1,000 in a fund that had a 5% return over
the past year, you would end up with $1,050. Comparing Class B's
performance to the consumer price index (CPI) helps show how the class did
compared to inflation. (The CPI return begins on the month end closest to
the fund's start date).
AVERAGE ANNUAL TOTAL RETURNS and the growth of a hypothetical $10,000
investment in the fund will appear once the fund is a year old.
TOTAL RETURN COMPONENTS
PERIOD ENDED DECEMBER 31,
1994

LIFE OF
FUND

Dividend return 0.84%

Capital appreciation return -0.90%

Total return -0.06%

Dividends per share 4.88(cents)

Annualized dividend rate 5.76%

30-day annualized yield 6.81%

DIVIDENDS per share show the income paid by the class for a set period. The
annualized dividend rate is based on an average net asset value of $9.98
over the past month. 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. The offering share price
used in the calculation of the yield excludes the effect of Class B's
contingent deferred sales charge. If Fidelity had not reimbursed certain
Class B expenses during the period shown, the yield would have been 5.18%.
FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
Sharply rising interest rates and
ongoing inflation worries caused
a severe downturn in U.S. bond
markets in 1994. Yields rose
sharply - and prices fell - on
virtually all types of fixed-income
investments. For the 12 months
ended December 31, 1994, the
Lehman Brothers Aggregate
Bond Index - a broad measure
of taxable bonds in the U.S. bond
market - had a total return of
- -2.92%. The Federal Reserve
Board raised the federal funds
rate - the rate banks charge
each other for overnight loans -
from 3.00% to 5.50% from
February to November. The Fed
was hoping to head off future
inflation that might be triggered by
an improving U.S. economy.
However, investors heavily sold
bonds at the very threat of
inflation because inflation
diminishes the value of their
fixed-rate interest payments.
Higher interest rates in many
foreign bond markets followed
the rate hikes in the United
States. Despite disappointing
bond market results, weakness in
the U.S. dollar caused the
Salomon Brothers World
Government Bond Index - a
measure of bond market
performance in developed
nations that includes U.S. issues
- - to post a positive 2.34% return
for the year. The JP Morgan
Emerging Markets Bond Index
was down 18.68% during the
same period, on the heels of
market corrections in many
emerging markets earlier in the
year and Mexico's devaluation of
the peso in December.
An interview with Donald Taylor, Portfolio Manager of Fidelity Advisor
Strategic Income Fund
Q. DON, HOW HAS THE FUND PERFORMED?
A. I've been generally pleased with
the fund's performance so far. From the fund's inception on October 31,
1994, to December 31, 1994, Fidelity Advisor Strategic Income - Class A and
Class B shares had cumulative total returns of 0.17% and -0.06%,
respectively. During the same period, the average general bond fund tracked
by Lipper Analytical Services returned -1.12%.
Q. GRANTED TWO MONTHS IS A VERY SHORT PERIOD IN WHICH TO JUDGE PERFORMANCE,
BUT WHY DID THE FUND TOP THE AVERAGE?
A. Because I kept a large position in cash and short-term investments in
November. The fund was one of the top performing funds in its category
during that month, because I was putting the fund's assets to work slowly.
I was concerned about the market, and, as a result, kept a fairly large
cash position, probably more than the average general bond fund. In
December, the fund's performance probably more closely mirrored that of the
average general bond fund.
Q. WHAT ARE THE MAIN CATEGORIES THAT THE FUND INVESTS IN?
A. There are three: U.S. government securities - including U.S. agency
mortgage-backed securities; foreign fixed-income securities, including
those in emerging markets and U.S. corporate securities. The corporate
issues for the most part will be lower-quality high-yield bonds, also
called junk bonds. Of course, junk bonds and emerging market securities can
carry additional risk.
Q. CAN YOU REVIEW THE FUND'S STRATEGY FOR US?
A. The fund is trying to take advantage of a variety of fixed-income
categories that often have different returns. For instance, going into the
recession at the end of 1990, Treasury bonds did very well, while corporate
high-yield bonds did poorly. Before dropping off in 1994, emerging markets
did very well in 1993. In most years, there's a disparity between the
categories. The fund has a broad universe to choose from, and hopes to add
value by overweighting somewhat in the area that seems most appealing.
However, shifting sector weights to take advantage of relative value may
help to soften underperformance within one of them.
Q. LET'S TOUCH ON HOW EACH OF THE CATEGORIES HAVE BEEN DOING.
A. I'll start with Treasuries. I've put that part of the portfolio into
what's called a barbell structure - overweighting two ends of the maturity
spectrum and investing relatively little in between. On one end, I've kept
a higher percentage of short-term cash investments. On the other end of the
barbell was a percentage in 25-year Treasuries, which were offering
attractive yields. The strategy in the U.S. government portion of the fund
worked well during the past two months.
Q. WHAT ABOUT CORPORATES?
A. I've added high-yield bonds gradually into the portfolio since it
started. This market tends to be weak in the fourth quarter and this year
was no exception. I took advantage of weakening prices in this area during
the quarter.
Q. AND, FINALLY, FOREIGN ISSUES?
A. There are a lot of choices when it comes to foreign bonds. I make
investment decisions after weighing relative value among developed markets
versus emerging markets. I expect that most of my investments in developed
markets will be in local currency, and I'll decide in each case whether to
hedge against currency risk by using forward currency contracts. The
overwhelming majority of the fund's emerging market investments should be
in dollar-denominated instruments. During the past two months, I have been
gradually building up my foreign investments. At year end, most of my
foreign investments were in what I call the Dollar Bloc, which includes
Australia and New Zealand. The fund also had some direct exposure to the
peso when the Mexican government devalued the currency in December. I sold
all of this peso-denominated debt as quickly as possible, at a loss. I'm
starting the new year without any peso-denominated investments.
Q. WHAT'S YOUR OUTLOOK GOING FORWARD?
A. It appears the Federal Reserve Board will raise interest rates again. It
seems committed to slowing growth and heading off inflation. I'll be
looking to position the U.S. government portion more aggressively when it
appears Fed interest rate increases are ending. As far as high-yield
corporates are concerned, if the economy stays strong, corporate issuers
should stay healthy and meet their obligations. If recessionary fears
build, I'll reduce the weighting in this category, but maintain investments
in companies that have solid prospects in spite of a weakening economy. In
developed markets, the Dollar Bloc and core European countries such as
Germany and France look attractive in the near future. As for emerging
markets, in the near term a lot depends on how the Mexican crisis is
handled. Longer-term, many emerging market countries have favorable
prospects, and may not be so particularly influenced by what happens in
Mexico.
FUND FACTS
GOAL: seeks a high level of
current income by investing
in bonds allocated among
three broad categories: U.S.
government securities; U.S.
corporate securities, including
lower-quality, high-yield
securities; and foreign
fixed-income securities,
including those in emerging
markets; may also seek
capital appreciation
START DATE: October 31,
1994
SIZE: as of December 31,
1994, more than $20 million
MANAGER: Donald Taylor,
since October 1994; joined
Fidelity in 1986
(checkmark)
DON TAYLOR ON INVESTMENT
STRATEGY:
"When I invest, I work
simultaneously on two
different levels. First, I might
have some allocation
preferences relative to the
three different categories of
securities in the fund. I plan to
stay broadly diversified in
each group, but I might focus
more on one or another at
different times under different
circumstances. At the same
time, I'll be trying to find the
individual securities I like best
within those categories."
(solid bullet) The fund is authorized to
invest in derivative instruments,
such as futures and forward
currency contracts. Futures
track the broad performance of
a market, and are used to
invest cash temporarily or
to manage the duration - or
interest rate sensitivity - of
the fund. Forward currency
contracts are used to hedge
against currency risk - the
risk that movements in the
currency of the country in
which an investment is made
will reduce returns from those
investments. The fund held
some forward currency
contracts at the end of the
period.
DISTRIBUTIONS
A total of 26.4% of the
dividends distributed during
the fiscal year was derived
from interest on U.S.
Government securities which
is generally exempt from state
income tax.
* The fund notified
shareholders in January 1995
of the applicable percentage
for use in preparing 1994
income tax returns.
INVESTMENT SUMMARY

TOP FIVE HOLDINGS AS OF DECEMBER 31, 1994
(BY ISSUER, EXCLUDING REPURCHASE AGREEMENTS) % OF FUND'S INVESTMENTS

U.S. Treasury Obligations (various issues) 26.4

Specialty Equipment Cos., Inc. 2.5

SDW Holdings Corp. 2.2

Brazil Federative Republic (various issues) 2.1

Revlon Worldwide Corp. 2.0

TOP FIVE INDUSTRIES AS OF DECEMBER 31, 1994
% OF FUND'S INVESTMENTS

Retail & Wholesale 6.5

Media & Leisure 5.5

Basic Industries 3.2

Finance 3.2

Nondurables 2.9

QUALITY DIVERSIFICATION AS OF DECEMBER 31, 1994
(MOODY'S RATINGS) % OF FUND'S INVESTMENTS

Aaa, Aa, A 28.9

Baa 0

Ba 1.6

B 27.9

Caa, Ca, C 0

Nonrated 9.4

TABLE EXCLUDES SHORT-TERM INVESTMENTS. UNRATED DEBT SECURITIES THAT ARE
EQUIVALENT TO
BA AND BELOW AT DECEMBER 31, 1994, ACCOUNT FOR 6.9% OF THE FUND'S
INVESTMENTS.
ASSET ALLOCATION
AS OF DECEMBER 31,1994

Nonconvertible Bonds 30.9%
Convertible Bonds, Preferred Stock 6.8%
Government Obligations 44.3%
Other 1.0%
Short-term investments 17.0%
Row: 1, Col: 1, Value: 17.0
Row: 1, Col: 2, Value: 1.0
Row: 1, Col: 3, Value: 44.3
Row: 1, Col: 4, Value: 6.8
Row: 1, Col: 5, Value: 30.9
INVESTMENTS DECEMBER 31, 1994

Showing Percentage of Total Value of Investment in Securities

CORPORATE BONDS - 32.3%
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (B) (NOTE 1)
CONVERTIBLE BONDS - 1.4%
HEALTH - 1.4%
MEDICAL FACILITIES MANAGEMENT - 1.4%
Huntingdon International Holdings 7 1/2%,
9/25/06 PLC - $ 600,000 $ 273,000
NONCONVERTIBLE BONDS - 30.9%
AEROSPACE & DEFENSE - 1.5%
K & F Industries, Inc. 11 7/8%, 12/1/03 B1 300,000 292,500
BASIC INDUSTRIES - 3.2%
CHEMICALS & PLASTICS - 1.5%
NL Industries, Inc. 11 3/4%, 10/15/03 B1 300,000 300,000
METALS & MINING - 1.2%
Kaiser Aluminum & Chemical Corp.
12 3/4%, 2/1/03 B2 240,000 241,800
PACKAGING & CONTAINERS - 0.5%
Grupo Industrial Durango 9.6875%,
11/18/96 (d)(e) BB 100,000 94,000
Total Basic Industries 635,800
CONSTRUCTION & REAL ESTATE - 0.9%
CONSTRUCTION - 0.9%
US Home Corp. 9 3/4%, 6/15/03 Ba3 200,000 173,000
DURABLES - 2.9%
AUTOS, TIRES, & ACCESSORIES - 1.5%
Harvard Industries, Inc. 12%, 7/15/04 B2 300,000 305,250
TEXTILES & APPAREL - 1.4%
Synthetic Industries, Inc. 12 3/4%, 12/1/02 B3 300,000 267,000
Total Durables 572,250
CORPORATE BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (B) (NOTE 1)
NONCONVERTIBLE BONDS - CONTINUED
ENERGY - 1.2%
OIL & GAS - 1.2%
Flores & Rucks, Inc. 13 1/2%, 12/01/04 B3 $ 100,000 $ 100,250
Mesa Capital Corp. secured 0%,
6/30/98 (g) B3 150,000 129,000
229,250
FINANCE - 2.1%
ASSET-BACKED SECURITIES - 1.1%
Premier Auto Trust 1993-3 4.9%, 12/15/98 Aaa 219,999 210,855
INSURANCE - 1.0%
American Life Holdings 11 1/4%, 9/15/04 B1 200,000 194,000
Total Finance 404,855
INDUSTRIAL MACHINERY & EQUIPMENT - 2.5%
Specialty Equipment Cos., Inc.
11 3/8%, 12/1/03 B3 500,000 485,000
MEDIA & LEISURE - 5.5%
BROADCASTING - 0.9%
Viacom, Inc. 8%, 7/7/06 B2 200,000 171,500
LEISURE DURABLES & TOYS - 1.5%
IHF Cap, Inc. 13%, 7/15/02 unit (1 Icon Health &
Fitness, Inc. & 1 IHF Cap, Inc. warrant)(d) B3 300,000 295,500
LODGING & GAMING - 3.1%
Aztar Corp. 13 3/4%, 10/1/04 B2 100,000 101,500
Grand Casino Resorts, Inc. gtd. 1st mtg.
12 1/2%, 2/1/00 220,000 207,900
Harrah's Jazz Co. 14 1/4%, 11/15/01 B1 300,000 314,250
623,650
TOTAL MEDIA & LEISURE 1,090,650
NONDURABLES - 2.9%
FOODS - 0.9%
Specialty Foods Corp. 11 1/4%, 8/15/03 B3 200,000 175,000
CORPORATE BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (B) (NOTE 1)
NONCONVERTIBLE BONDS - CONTINUED
NONDURABLES - CONTINUED
HOUSEHOLD PRODUCTS - 2.0%
Revlon Worldwide Corp. secured 0%, 3/15/98 B3 $ 684,000 $ 400,140
TOTAL NONDURABLES 575,140
RETAIL & WHOLESALE - 5.4%
APPAREL STORES - 1.4%
Specialty Retailers, Inc. 11%, 8/15/03 B3 300,000 273,000
GROCERY STORES - 1.0%
Pathmark Stores, Inc. 0%, 11/1/03 (g) B3 400,000 204,000
RETAIL & WHOLESALE, MISCELLANEOUS - 3.0%
Florists Transworld Delivery Ftd. 14%,
12/15/01 (d) B3 300,000 300,000
Rickel Home Centers, Inc. 13 1/2%, 12/15/01 B2 300,000 288,000
588,000
TOTAL RETAIL & WHOLESALE 1,065,000
TRANSPORTATION - 1.8%
RAILROADS - 1.0%
Transtar Holdings L.P./Transtar Cap Corp.,
Series B, 0%, 12/15/03 (g) B- 400,000 207,000
TRUCKING & FREIGHT - 0.8%
Trism, Inc. 10 3/4%, 12/15/00 B2 160,000 152,000
Total Transportation 359,000
UTILITIES - 1.0%
GAS - 1.0%
Centragas Transpotadora De Gas
10.65%, 12/1/10 (d) BBB- 200,000 191,000
TOTAL NONCONVERTIBLE BONDS 6,073,445
TOTAL CORPORATE BONDS
(Cost $6,271,720) 6,346,445
U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS - 26.4%
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (B) (NOTE 1)
U.S. TREASURY OBLIGATIONS - 26.2%
7 1/2%, 10/31/99 Aaa $ 700,000 $ 689,908
7 3/4%, 11/30/99 Aaa 185,000 184,306
6 1/4%, 2/15/03 Aaa 370,000 334,617
5 3/4%, 8/15/03 Aaa 640,000 556,198
7 7/8%, 11/15/04 Aaa 470,000 471,321
8 1/8%, 8/15/19 Aaa 1,900,000 1,925,232
United States Treasury Bill, yields at time of
purchase 5.365% - 5.612%, 3/9/95 - 1,000,000 990,205
TOTAL U.S. TREASURY OBLIGATIONS 5,151,787
U.S. GOVERNMENT AGENCY OBLIGATIONS - 0.2%
Government Trust Certificates, Series 1994-F,
(assets of Trust guaranteed by U.S.
Government through Export-Import
Bank) 8.187%, 12/15/04 Aaa 47,646 47,482
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS
(Cost $5,165,421) 5,199,269
COMMERCIAL MORTGAGE OBLIGATIONS - 1.0%
Resolution Trust Corp. commercial Series1994-C2
Class E, 8%, 4/25/25 (Cost $199,735) BB 249,106 201,776
FOREIGN GOVERNMENT OBLIGATIONS (F) - 17.9%
Argentina Republic:
Bote 4.102%, 4/3/00 (e) - 65,000 48,081
BOCON 5.625%, 4/1/01 (e) B1 423,809 269,065
Letras 0%, 2/24/95 - ARP 200,000 193,757
Commonwealth of Australia:
7%, 4/15/00 Aaa AUD 450,000 301,857
6 3/4%, 11/15/06 Aaa AUD 335,000 198,773
Brazil Federative Republic:
IDU euro 7.8125%, 1/1/01 (e) B1 98,000 81,830
New Money 6 3/4%, 4/15/09 (e) - 200,000 123,000
euro 6 3/4%, 4/15/12 (e) - 100,000 59,375
8%, 4/15/14 B2 306,000 146,498
French Government OAT 8 1/2%, 4/25/23 Aaa FRF 1,000,000 184,205
German Republic 6 1/4%, 1/4/24 Aaa DEM 550,000 287,512
FOREIGN GOVERNMENT OBLIGATIONS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (B) (NOTE 1)
Mexican Government:
Brady 6 1/4%, 12/31/19 Ba3 $ 250,000 $ 135,000
Tesabono 0%, 1/26/95 - 181,000 178,325
Mexico Value Recovery (rights) (a) - 200,000 2
Morrocco Trust 5.9375%, 1/3/09 (d)(e) - 250,000 165,000
New Zealand Government 10%, 7/15/97 Aaa NZD 450,000 292,129
Polish Government past due interest Bearer
3 1/4%, 10/27/14 (e) - 900,000 398,250
Republic of Bulgaria 6.0625%, 7/28/24 (e) - 700,000 325,500
Republic of Ecuador past due interest (d)(h) - 400,000 147,000
TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost $3,640,750) 3,535,159
PREFERRED STOCKS - 5.4%
SHARES
CONVERTIBLE PREFERRED STOCKS - 1.0%
CONSTRUCTION & REAL ESTATE - 1.0%
REAL ESTATE - 1.0%
Catellus Development Corp. exchangeable
$3.625 (d) 5,000 195,000
NONCONVERTIBLE PREFERRED STOCKS - 4.4%
FINANCE - 1.1%
SAVINGS & LOANS - 1.1%
Greater New York Savings Bank Series B 10,000 222,500
HOLDING COMPANIES - 2.2%
SDW Holdings Corp. (d) 16,500 429,000
RETAIL & WHOLESALE - 1.1%
GROCERY STORES - 1.1%
Supermarkets General Holdings Corp.
exchangeable pay-in-kind $3.52 (a) 10,000 207,500
TOTAL NONCONVERTIBLE PREFERRED STOCKS 859,000
TOTAL PREFERRED STOCKS
(Cost $1,050,622) 1,054,000
REPURCHASE AGREEMENTS - 17.0%
MATURITY VALUE (NOTE 1)
AMOUNT
Investments in repurchase agreements,
(U.S. Treasury obligations), in a
joint trading account ar 5.77%,
dated 12/30/94 due 1/3/95 $ 3,349,146 $ 3,347,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $19,675,248) $ 19,683,649
FORWARD FOREIGN CURRENCY CONTRACTS
SETTLEMENT UNREALIZED
DATE(S) VALUE GAIN/(LOSS)
CONTRACTS TO SELL
393,325 AUD 3/14/95 to 6/6/95 $ 303,279 $ (2,279)
516,463 DEM 3/9/95 to 6/6/95 334,075 (5,337)
1,070,000 FRF 3/9/95 200,573 (2,362)
19,190 GBP 6/5/95 30,050 (50)
7,804,336 JPY 3/14/95 to 6/5/95 79,690 117
TOTAL CONTRACTS TO SELL
(Receivable amount $937,756) $ 947,667 (9,911)
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 4.8%
CURRENCY ABBREVIATIONS
ARP - Argentine peso
AUD - Australian dollar
GBP - British pound
FRF - French franc
DEM - German deutsche mark
JPY - Japanese yen
NZD - New Zealand dollar
LEGEND
(h) Non-income producing
(i) Principal amount is stated in United States dollars unless otherwise
noted.
(j) Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
(k) 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 $1,816,500 or 9.1% of net assets.
(l) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(m) 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.
(n) Debt obligation initially issued in zero coupon form which converts to
coupon form at a specified rate and date.
(o) Security purchased on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
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 28.9% AAA, AA, A 28.9%
Baa 0.0% BBB 1.0%
Ba 1.6% BB 2.5%
B 27.9% B 25.6%
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 6.9%. FMR has determined that unrated
debt securities that are lower quality account for 6.9% of the total value
of investment in securities.
Distribution of investments by country of issue, as a percentage of total
value of investment in securities, is as follows:
United States 79.3
Argentina 2.6
Australia 2.5
Brazil 2.1
Mexico 2.1
Poland 2.0
Bulgaria 1.7
New Zealand 1.5
Germany 1.5
United Kingdom 1.4
Others (individually less than 1%) 3.3
TOTAL 100.0%
INCOME TAX INFORMATION
At December 31, 1994, the aggregate cost of investment securities for
income tax purposes was $19,675,248. Net unrealized appreciation aggregated
$8,401, of which $166,754 related to appreciated investment securities and
$158,353 related to depreciated investment securities.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
DECEMBER 31, 1994

ASSETS

Investment in securities, at value (including repurchase $ 19,683,649
agreements of $3,347,000) (cost $19,675,248) -
See accompanying schedule

Cash 174,662

Unrealized appreciation on foreign currency contracts 117

Receivable for fund shares sold 1,071,654

Interest receivable 317,816

Receivable from investment adviser for expense 31,118
reductions

TOTAL ASSETS 21,279,016

LIABILITIES

Payable for investments purchased $ 986,667
Regular delivery

Delayed delivery 158,000

Unrealized depreciation on foreign currency contracts 10,028

Dividends payable 9,093

Accrued management fee 8,105

Distribution fees payable 8,606

Other payables and accrued expenses 32,699

TOTAL LIABILITIES 1,213,198

NET ASSETS $ 20,065,818

NET ASSETS CONSIST OF:

Paid in capital $ 20,238,139

Distributions in excess of net investment income (163,199
)

Accumulated undistributed net realized gain (loss) on (8,302
investments and foreign currency transactions )

Net unrealized appreciation (depreciation) on investments (820)
and assets and liabilities in foreign currencies

NET ASSETS $ 20,065,818

CALCULATION OF MAXIMUM OFFERING PRICE $9.92
CLASS A:
NET ASSET VALUE, and redemption price per share
($10,686,908 (divided by) 1,077,719 shares)

Maximum offering price per share (100/95.25 of $9.92) $10.41

CLASS B: $9.91
NET ASSET VALUE, offering price and redemption price per
share ($9,378,910 (divided by) 946,065 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
OCTOBER 31, 1994 (COMMENCEMENT OF
OPERATIONS) TO DECEMBER 31, 1994

INVESTMENT INCOME $ 123,653
Interest

EXPENSES

Management fee $ 10,348

Transfer agent fees 3,332
Class A

Class B 1,406

Distribution fees 2,114
Class A

Class B 8,620

Accounting fees and expenses 7,500

Non-interested trustees' compensation 2

Custodian fees and expenses 2,500

Registration fees 4,531
Class A

Class B 3,637

Audit 17,002

Total expenses before reductions 60,992

Expense reductions (31,118) 29,874

NET INVESTMENT INCOME 93,779

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

Investment securities (166,388)

Foreign currency transactions (6) (166,394)

Change in net unrealized appreciation
(depreciation) on:

Investment securities 8,401

Assets and liabilities in foreign currencies (9,221) (820)

NET GAIN (LOSS) (167,214)

NET INCREASE (DECREASE) IN NET ASSETS $ (73,435)
RESULTING
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
OCTOBER 31, 1994
(COMMENCEMENT OF
OPERATIONS)
TO DECEMBER 31, 1994

INCREASE (DECREASE) IN NET ASSETS

Operations $ 93,779
Net investment income

Net realized gain (loss) (166,394)

Change in net unrealized appreciation (depreciation) (820)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM (73,435)
OPERATIONS

Distributions to shareholders from
Net investment income

Class A (53,334)

Class B (45,552)

Total distributions (98,886)

Share transactions - net increase (decrease) 20,238,139

TOTAL INCREASE (DECREASE) IN NET ASSETS 20,065,818

NET ASSETS

Beginning of period -

END OF PERIOD (including distributions in excess of net investment $ 20,065,818

income of $163,199)

</TABLE>

FINANCIAL HIGHLIGHTS CLASS A & CLASS B

<TABLE>
<CAPTION>
<S> <C> <C>
CLASS A CLASS B
PERIOD ENDED PERIOD ENDED
DECEMBER 31, DECEMBER 31,
1994 D 1994 D

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 10.000 $ 10.000

Income from Investment Operations

Net investment income .064 E .072 E

Net realized and unrealized gain (loss) on investments (.046) (.078)

Total from investment operations .018 (.006)

Less Distributions

From net investment income (.098) (.084)

Net asset value, end of period $ 9.920 $ 9.910

TOTAL RETURN B, C .17% (.06)%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 10,687 $ 9,379

Ratio of expenses to average net assets 1.35% A 2.10% A

Ratio of expenses to average net assets before 2.50% A 2.50% A
expense reductions F

Ratio of net investment income to average net assets 5.80% A 5.06% A

Portfolio turnover 104% A 104% A

</TABLE>

A ANNUALIZED
B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN. (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS.)
C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D FOR THE PERIOD OCTOBER 31, 1994 (COMMENCEMENT OF SALES OF CLASS A & CLASS
B SHARES) TO DECEMBER 31, 1994.
E NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
F LIMITED IN ACCORDANCE WITH A STATE EXPENSE LIMITATION.
NOTES TO FINANCIAL STATEMENTS
For the period ended December 31, 1994

9. SIGNIFICANT ACCOUNTING
POLICIES.
Fidelity Advisor Strategic Income Fund (the fund) is a fund of Fidelity
Advisor Series VIII (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 fund offers Class A and Class B shares, each of which has equal rights
as to assets and voting privileges. Each class has exclusive voting rights
with respect to its distribution plan. Investment income, realized and
unrealized capital gains and losses, and the common expenses of the fund
are allocated on a prorata basis to each class based on the relative net
assets of each class to the total net assets of the fund. Each class of
shares differs in its respective distribution, transfer agent,
registration, and certain other class-specific fees and expenses.
SECURITY VALUATION. Securities for which quotations are readily available
are valued by a pricing service at their market values as determined by
their most recent bid prices (sales prices if the principal market is an
exchange) in the principal market in which such securities are normally
traded. Securities for which market quotations are not readily available
(and in certain cases debt securities which trade on an exchange) 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.
Reported 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
not segregated in the Statement of Operations from the effects of changes
in market prices of those securities, but are included with the net
realized and unrealized gain or loss on investment securities.
INCOME TAXES. The fund intends to qualify as a regulated investment company
under Subchapter M of the
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
INCOME TAXES - CONTINUED
Internal Revenue Code. By so qualifying, the fund will not be subject to
income taxes to the extent that it distributes 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.
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 recorded on the
ex-dividend date. Income dividends are declared separately for each class,
while capital gain distributions are declared at the fund level and
allocated to each class on a prorata basis based on the number of shares
held by each class 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 are primarily due to differing treatments for
foreign currency transactions and market discount.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect net investment income per share. Distributions in excess of net
investment income 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.
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.
10. 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.
2. OPERATING POLICIES -
CONTINUED
FORWARD FOREIGN CURRENCY CONTRACTS - CONTINUED
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.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. The fund's investment
adviser, Fidelity Management & Research Company (FMR), is responsible for
determining that the value of these underlying securities remains at least
equal to the resale price.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission (the SEC), the fund, along with other
affiliated entities of 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, and are collateralized by U.S. Treasury or Federal Agency
obligations.
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 fund
identifies securities as segregated in its custodial records with a value
at least equal to the amount of the purchase commitment.
11. PURCHASES AND SALES OF
INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $16,107,102 and $1,151,876, respectively, of which U.S.
government and government agency obligations aggregated $4,685,561 and
$683,129, respectively.
12. 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 .1200% to .3700% October 31, 1994 to December 31, 1994.
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.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
DISTRIBUTION AND SERVICE PLAN. In accordance with Rule 12b-1 of the 1940
Act, the Trustees have adopted separate distribution plans with respect to
the fund's Class A shares ("Class A Plan") and Class B shares ("Class B
Plan"), pursuant to which the fund pays Fidelity Distributors Corporation
(FDC), an affiliate of FMR, a distribution and service fee. This fee is
based on annual rates of .25% and 1.00% (of which .75% represents a
distribution fee and .25% represents a shareholder service fee) of the
average net assets of the Class A and Class B shares, respectively. For the
period, the fund paid FDC $2,114 and $8,620 under the Class A Plan and
Class B Plan, respectively, of which $1,626 and $2,155 were paid to
securities dealers, banks and other financial institutions for the
distribution of Class A and Class B shares, and providing shareholder
support services.
In addition, FMR or FDC may use its resources to pay administrative and
promotional expenses related to the sale of the fund's shares. Subject to
the approval of the Board of Trustees, the Plans also authorize payments to
third parties that assist in the sale of the fund's shares or render
shareholder support services. No payments were made under the Plans during
the period.
SALES LOAD. FDC receives a front-end sales charge of up to 4.75% for
selling Class A shares of the fund. For the period, FDC received sales
charges of $197,904 on sales of Class A shares of the fund, all of which
was paid to securities dealers, banks, and other financial institutions.
FDC also receives the proceeds of a contingent deferred sales charge levied
on Class B share redemptions occurring within five years of purchase. The
charge is based on declining rates which range from 4% to 1% of the lesser
of the cost of shares at the initial date of purchase or the net asset
value of the redeemed shares, excluding any reinvested dividends and
capital gains. For the period, FDC received contingent deferred sales
charges of $9,542 on Class B share redemptions from the fund. When Class B
shares are sold, FDC pays commissions from its own resources to dealers
through which the sales are made.
TRANSFER AGENT FEES. State Street Bank and Trust Company (State Street) is
the transfer, dividend disbursing, and shareholder servicing agent for the
fund's Class A shares, while Fidelity Investments Institutional Operations
Company (FIIOC), an affiliate of FMR (collectively, with State Street,
referred to as the Transfer Agents) acts in that capacity for the fund's
Class B shares. The Transfer Agents receive fees based on the type, size,
number of accounts, and the number of transactions made by shareholders of
the respective classes of the fund. With respect to the Class A shares,
State Street has delegated certain transfer, dividend paying, and
shareholder services to FIIOC for which FIIOC receives its allocable share
of all such fees. FIIOC pays for typesetting, printing and mailing of all
shareholder reports, except proxy statements.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES- CONTINUED
ACCOUNTING FEES. Fidelity Service Co. (FSC), an affiliate of FMR, 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.
13. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse the funds' operating expenses
(excluding interest, taxes, brokerage commissions and extraordinary
expenses) above an annual rate of 1.35% and 2.10% of average net assets for
Class A and Class B, respectively. For the period, the reimbursement
reduced expenses by $16,887 and $14,231 for Class A and Class B,
respectively.
14. SHARE TRANSACTIONS.
Share transactions for both classes were as follows:
SHARES DOLLARS
PERIOD ENDED PERIOD ENDED
DECEMBER 31, DECEMBER 31,
1994 A 1994 A
CLASS A
Shares sold 1,089,553 $ 10,913,598
Reinvestment of distributions 4,800 47,705
Shares redeemed (16,634) (187,175)
Net increase (decrease) 1,077,719 $ 10,774,128
CLASS B
Shares sold 983,229 $ 9,833,907
Reinvestment of distributions 4,120 40,895
Shares redeemed (41,284) (410,791)
Net increase (decrease) 946,065 $ 9,464,011
A SHARE TRANSACTIONS FOR CLASS A AND CLASS B ARE FOR THE PERIOD OCTOBER 31,
1994 (COMMENCEMENT OF SALE OF SHARES) TO DECEMBER 31, 1994.
REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees of Fidelity Advisor
Series VIII and the Shareholders of
Fidelity Advisor Strategic Income Fund:
We have audited the accompanying statement of assets and liabilities of
Fidelity Advisor Series VIII: Fidelity Advisor Strategic Income Fund,
including the schedule of portfolio investments, as of December 31, 1994,
and the related statement of operations, the statement of changes in net
assets and the financial highlights for the period October 31, 1994
(commencement of operations of Class A and Class B shares) to December 31,
1994. These financial statements and financial highlights are the
responsibility of the fund's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on
our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1994 by correspondence with the
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Advisor Series VIII: Fidelity Advisor Strategic Income Fund as
of December 31, 1994, the results of its operations, the changes in its net
assets, and the financial highlights for the period October 31, 1994
(commencement of operations of Class A and Class B shares) to December 31,
1994 in conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
February 9, 1995

INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Arthur S. Loring, Secretary
Gary L. French, 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
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
State Street Bank and Trust Company
Boston, MA - Class A
Fidelity Investments Institutional
Operations Company
Boston, MA - Class B
CUSTODIAN
Bank of New York
New York, NY
GROWTH FUNDS
Fidelity Advisor Overseas Fund
Fidelity Advisor Equity Portfolio Growth
Fidelity Advisor Global Resources Fund
Fidelity Advisor Growth
Opportunities Fund
Fidelity Advisor Strategic
Opportunities Fund
GROWTH AND INCOME FUNDS
Fidelity Advisor Equity Portfolio Income
Fidelity Advisor Income & Growth Fund
INCOME FUNDS
Fidelity Advisor Emerging Markets Income Fund
Fidelity Advisor High Yield Fund
Fidelity Advisor Strategic Income Fund
Fidelity Advisor Government Investment Fund
Fidelity Advisor Limited Term Bond Fund
Fidelity Advisor Short Fixed-Income Fund
TAX-EXEMPT FUNDS
Fidelity Advisor High Income
Municipal Fund
Fidelity Advisor Limited Term Tax-Exempt Fund
Fidelity Advisor Short-Intermediate Tax-Exempt Fund
MONEY MARKET FUNDS
Daily Money Fund: Money Market Portfolio
Daily Money Fund: U.S. Treasury Portfolio
Daily Tax-Exempt Money Fund
(REGISTERED TRADEMARK)
(registered trademark)
DISTRIBUTIONS

A total of 26.4% of the dividends distributed during the fiscal year was
derived from interest on U.S. Government securities which is generally
exempt from state income tax.
*The fund notified shareholders in January 1995 of the applicable
percentage for use in preparing 1994 income tax returns.

(2_FIDELITY_LOGOS)FIDELITY ADVISOR
(registered trademark)

STRATEGIC OPPORTUNITIES
FUND - CLASS A & CLASS B
ANNUAL REPORT
DECEMBER 31, 1994
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on stock market
strategies.

PERFORMANCE 4 How the fund has done over time.

FUND TALK 9 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 12 A summary of major shifts in the
fund's investments over the past six
months.

INVESTMENTS 13 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 21 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 27 Notes to the financial statements.

REPORT OF INDEPENDENT 33 The auditors' opinion.
ACCOUNTANTS

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, THE FEDERAL
RESERVE BOARD OR
ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISK, INCLUDING THE
POSSIBLE LOSS OF
PRINCIPAL. NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A
BANK. FOR MORE
INFORMATION ON ANY FIDELITY ADVISOR FUND, INCLUDING CHARGES AND EXPENSES,
CONTACT YOUR
INVESTMENT PROFESSIONAL FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU
INVEST OR SEND
MONEY.
PRESIDENT'S MESSAGE

DEAR SHAREHOLDER:
The unsettling period that began for investors when the Federal Reserve
Board raised short-term interest rates in February continued into the
fourth quarter of 1994. The Board raised the federal funds rate - the rate
banks charge each other for overnight loans - five times from February
through August, taking it from 3.00% to 4.75%. A sixth increase in November
lifted the rate to 5.50%. The Fed rate hikes were intended to forestall
inflation that could result from an improving U.S. economy, and they led to
below-average returns for many stocks and negative returns for many bond
investments.
The volatility we have witnessed this year follows a period in which there
was a nearly perfect investing environment. Although there was a
late-summer rally in stocks and, to a lesser extent in bond markets, it is
impossible to predict where interest rates might go or what might happen in
the markets in the months ahead. That's why it probably is a good time to
again review your investment portfolio and how well it matches your goals.
If you can leave your money invested over the long term, you can avoid much
of the volatility that generally accompanies the stock market in the short
term, as we have been witnessing this year. You also can help to manage
risk through diversification of investments. A stock fund is already
diversified because it invests in many issues. You can diversify even
further by placing some of your money in several different stock funds or
in other investment categories, such as bonds.
If you have a short investment time horizon, you might want to consider
moving some of your investment into a money market fund, which seeks income
and a stable share price by investing in high-quality, short-term
investments. As with any mutual fund, 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 by any agency of the U.S.
government.
Finally, 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, as we have discussed here. A periodic investment
plan will not, of course, assure a profit or protect against a loss.
Remember to contact your investment professional if you need help with your
investments.
Best regards,
Edward C. Johnson 3d
ADVISOR STRATEGIC OPPORTUNITIES FUND - CLASS A
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, plus reinvestment of any
dividends (or income) and capital gains (the profits the fund earns when it
sells securities that have grown in value). On August 20, 1986, the fund
began offering Class A shares. All performance information for Class A
prior to August 20, 1986 reflects the performance of Initial Class shares
and therefore does not reflect Class A's 12b-1 fee and different transfer
agent fee arrangements (see Notes to Financial Statements), which if
included, would have lowered Class A's performance. If Fidelity had not
reimbursed certain Class A expenses during the periods shown, the total
returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1994 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

Advisor Strategic Opportunities - Class A -7.17% 44.18% 285.19%

Advisor Strategic Opportunities - Class A
(incl. 4.75% sales charge) -11.58% 37.33% 266.89%

S&P 500(registered trademark) 1.32% 51.77% 283.58%

Average Capital Appreciation Fund -3.38% 54.58% 228.09%

CUMULATIVE TOTAL RETURNS show Class A's performance in percentage terms
over a set period - in this case, one year, five years, or 10 years. For
example, if you invested $1,000 in a fund that had a 5% return over the
past year, you would end up with $1,050. You can compare Class A's returns
to those of the Standard & Poor's Composite Index of 500 Stocks - a common
proxy for the U.S. stock market. To measure how Class A's performance
stacked up against its peers, you can compare it to the average capital
appreciation fund, which currently reflects the performance of 139 capital
appreciation funds with similar objectives tracked by Lipper Analytical
Services. These benchmarks include reinvested dividends and capital gains,
if any, and exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1994 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

Advisor Strategic Opportunities - Class A -7.17% 7.59% 14.44%

Advisor Strategic Opportunities - Class A
(incl. 4.75% sales charge) -11.58% 6.55% 13.88%

S&P 500 1.32% 8.70% 14.39%

Average Capital Appreciation Fund -3.38% 8.70% 11.83%

AVERAGE ANNUAL TOTAL RETURNS take Class A shares' actual (or cumulative)
return and show you what would have happened if Class A shares had
performed at a constant rate each year.
$10,000 OVER 10 YEARS
Fidelity Advisor SpeStandard & Poor's 50
12/31/84 9525.00 10000.00
01/31/85 10565.84 10779.00
02/28/85 10557.10 10911.58
03/31/85 10399.66 10919.22
04/30/85 10355.93 10909.39
05/31/85 10985.68 11539.96
06/30/85 11230.58 11721.13
07/31/85 11431.75 11703.55
08/31/85 11562.95 11604.07
09/30/85 11108.13 11240.86
10/31/85 11729.14 11760.19
11/30/85 12489.98 12566.94
12/31/85 13101.85 13175.18
01/31/86 13684.59 13248.96
02/28/86 14840.35 14239.98
03/31/86 15908.70 15034.57
04/30/86 15636.75 14864.68
05/31/86 15947.55 15655.49
06/30/86 16802.23 15920.06
07/31/86 16268.05 15030.13
08/31/86 17365.54 16145.37
09/30/86 16229.20 14810.15
10/31/86 16860.50 15664.69
11/30/86 17121.80 16045.34
12/31/86 16759.92 15636.19
01/31/87 18135.04 17742.38
02/28/87 18321.15 18443.20
03/31/87 18858.79 18976.21
04/30/87 18300.47 18807.33
05/31/87 18476.24 18970.95
06/30/87 19055.24 19928.98
07/31/87 19820.34 20939.38
08/31/87 20213.23 21720.42
09/30/87 19706.61 21244.74
10/31/87 16087.87 16668.63
11/30/87 15353.79 15295.13
12/31/87 15698.38 16459.09
01/31/88 16928.21 17152.02
02/29/88 17482.84 17951.30
03/31/88 17205.52 17396.61
04/30/88 17314.04 17589.71
05/31/88 17615.47 17742.74
06/30/88 18821.18 18557.13
07/31/88 18712.67 18486.61
08/31/88 18133.92 17858.07
09/30/88 18724.72 18618.82
10/31/88 19050.27 19136.43
11/30/88 19170.84 18862.78
12/31/88 19191.01 19192.87
01/31/89 20278.01 20597.79
02/28/89 20190.55 20084.91
03/31/89 20615.35 20552.89
04/30/89 21402.48 21619.58
05/31/89 22389.52 22495.17
06/30/89 22564.43 22366.95
07/31/89 24113.71 24386.69
08/31/89 24426.06 24864.67
09/30/89 24426.06 24762.72
10/31/89 24026.25 24188.23
11/30/89 24675.95 24681.66
12/31/89 25446.88 25274.02
01/31/90 23764.12 23578.14
02/28/90 23892.57 23882.30
03/31/90 23892.57 24515.18
04/30/90 22916.32 23902.30
05/31/90 23661.36 26232.77
06/30/90 23892.57 26054.39
07/31/90 23956.80 25971.01
08/31/90 22274.04 23623.23
09/30/90 22107.05 22472.78
10/31/90 22094.21 22376.15
11/30/90 23070.46 23821.65
12/31/90 23622.27 24486.27
01/31/91 24385.58 25553.87
02/28/91 25845.23 27380.98
03/31/91 26662.10 28043.60
04/30/91 27023.66 28110.90
05/31/91 27987.84 29325.29
06/30/91 27104.01 27982.19
07/31/91 27920.88 29286.16
08/31/91 28523.49 29980.25
09/30/91 28630.62 29479.58
10/31/91 28054.79 29874.60
11/30/91 27371.84 28670.66
12/31/91 29074.12 31950.58
01/31/92 29121.29 31356.30
02/29/92 29687.37 31763.93
03/31/92 28932.60 31144.53
04/30/92 29482.95 32060.18
05/31/92 30442.13 32217.28
06/30/92 30442.13 31737.24
07/31/92 31385.58 33035.29
08/31/92 30835.23 32358.07
09/30/92 30709.44 32739.89
10/31/92 30961.03 32854.48
11/30/92 32281.86 33974.82
12/31/92 32816.69 34392.71
01/31/93 33436.85 34681.61
02/28/93 34384.31 35153.28
03/31/93 35452.36 35895.02
04/30/93 34746.07 35026.36
05/31/93 35555.72 35965.06
06/30/93 35848.58 36069.36
07/31/93 36606.55 35925.08
08/31/93 38897.69 37286.64
09/30/93 38794.33 36999.54
10/31/93 40017.42 37765.43
11/30/93 38329.21 37406.66
12/31/93 39523.16 37859.28
01/31/94 39865.19 39146.49
02/28/94 38440.07 38085.62
03/31/94 36957.96 36425.09
04/30/94 37261.98 36891.33
05/31/94 37337.99 37496.35
06/30/94 37337.99 36577.69
07/31/94 38231.06 37777.44
08/31/94 38459.08 39326.31
09/30/94 37927.03 38362.82
10/31/94 37528.00 39225.98
11/30/94 36368.91 37797.37
12/30/94 36709.08 38357.90

$10,000 OVER 10 YEARS: Let's say you invested $10,000 in Fidelity Advisor
Strategic Opportunities Fund - Class A on December 31, 1984, and paid the
maximum 4.75% sales charge. As the chart shows, by December 31, 1994, the
value of your investment would have grown to $36,689 - a 266.89% increase
on your initial investment. For comparison, look at how the S&P 500 did
over the same period. With dividends reinvested, the same $10,000
investment would have grown to $38,358 - a 283.58% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. The stock market,
for example, has a history of
growth in the long run and
volatility in the short run. In
turn, the share price and
return of a fund that invests in
stocks 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)
ADVISOR STRATEGIC OPPORTUNITIES FUND - CLASS B
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, plus reinvestment of any
dividends (or income) and capital gains (the profits the fund earns when it
sells securities that have grown in value). On June 30, 1994, the fund
began offering Class B shares. All performance information for Class B
prior to June 30, 1994 reflects the performance of Initial Class shares up
to August 19, 1986, and the performance of Class A thereafter, and
therefore does not reflect different Class B 12b-1 fee and transfer agent
fee arrangements (see Notes to Financial Statements), which if included,
would have lowered Class B's performance. If Fidelity had not reimbursed
certain Class B expenses during the periods shown, the total returns would
have been lower. Class B's contingent deferred sales charges included in
the past 1 year, past 5 years and past 10 years total return figures are
4%, 1% and 0%, respectively.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1994 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

Advisor Strategic Opportunities - Class B -7.22% 44.11% 285.00%

Advisor Strategic Opportunities - Class B
(incl. contingent deferred sales charge) -10.79% 43.17% 285.00%

S&P 500(registered trademark) 1.32% 51.77% 283.58%

Average Capital Appreciation Fund -3.38% 54.58% 228.09%

CUMULATIVE TOTAL RETURNS show Class B's performance in percentage terms
over a set period - in this case, one year, five years, or 10 years. For
example, if you invested $1,000 in a fund that had a 5% return over the
past year, you would end up with $1,050. You can compare Class B's returns
to those of the Standard & Poor's Composite Index of 500 Stocks - a common
proxy for the U.S. stock market. To measure how Class B's performance
stacked up against its peers, you can compare it to the average capital
appreciation fund, which currently reflects the performance of 139 capital
appreciation funds with similar objectives tracked by Lipper Analytical
Services. These benchmarks include reinvested dividends and capital gains,
if any, and exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1994 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

Advisor Strategic Opportunities - Class B -7.22% 7.58% 14.43%

Advisor Strategic Opportunities - Class B
(incl. contingent deferred sales charge) -10.79% 7.44% 14.43%

S&P 500 1.32% 8.70% 14.39%

Average Capital Appreciation Fund -3.38% 8.70% 11.83%

AVERAGE ANNUAL TOTAL RETURNS take Class B shares' actual (or cumulative)
return and show you what would have happened if Class B shares had
performed at a constant rate each year.
$10,000 OVER 10 YEARS
Fidelity Advisor SpeStandard & Poor's 50
12/31/84 9525.00 10000.00
01/31/85 10565.84 10779.00
02/28/85 10557.10 10911.58
03/31/85 10399.66 10919.22
04/30/85 10355.93 10909.39
05/31/85 10985.68 11539.96
06/30/85 11230.58 11721.13
07/31/85 11431.75 11703.55
08/31/85 11562.95 11604.07
09/30/85 11108.13 11240.86
10/31/85 11729.14 11760.19
11/30/85 12489.98 12566.94
12/31/85 13101.85 13175.18
01/31/86 13684.59 13248.96
02/28/86 14840.35 14239.98
03/31/86 15908.70 15034.57
04/30/86 15636.75 14864.68
05/31/86 15947.55 15655.49
06/30/86 16802.23 15920.06
07/31/86 16268.05 15030.13
08/31/86 17365.54 16145.37
09/30/86 16229.20 14810.15
10/31/86 16860.50 15664.69
11/30/86 17121.80 16045.34
12/31/86 16759.92 15636.19
01/31/87 18145.38 17742.38
02/28/87 18331.49 18443.20
03/31/87 18889.81 18976.21
04/30/87 18341.83 18807.33
05/31/87 18527.94 18970.95
06/30/87 19117.27 19928.98
07/31/87 19903.06 20939.38
08/31/87 20295.95 21720.42
09/30/87 19778.99 21244.74
10/31/87 16180.93 16668.63
11/30/87 15446.84 15295.13
12/31/87 15801.75 16459.09
01/31/88 17055.28 17152.02
02/29/88 17621.78 17951.30
03/31/88 17308.40 17396.61
04/30/88 17416.87 17589.71
05/31/88 17718.20 17742.74
06/30/88 18935.58 18557.13
07/31/88 18827.10 18486.61
08/31/88 18260.60 17858.07
09/30/88 18863.26 18618.82
10/31/88 19200.75 19136.43
11/30/88 19309.23 18862.78
12/31/88 19389.89 19192.87
01/31/89 20554.03 20597.79
02/28/89 20466.41 20084.91
03/31/89 20892.01 20552.89
04/30/89 21680.62 21619.58
05/31/89 22669.52 22495.17
06/30/89 22857.28 22366.95
07/31/89 24421.99 24386.69
08/31/89 24722.42 24864.67
09/30/89 24747.45 24762.72
10/31/89 24346.89 24188.23
11/30/89 25022.84 24681.66
12/31/89 25784.76 25274.02
01/31/90 24111.60 23578.14
02/28/90 24254.27 23882.30
03/31/90 24280.21 24515.18
04/30/90 23294.48 23902.30
05/31/90 24059.72 26232.77
06/30/90 24293.18 26054.39
07/31/90 24383.98 25971.01
08/31/90 22697.85 23623.23
09/30/90 22529.24 22472.78
10/31/90 22529.24 22376.15
11/30/90 23527.94 23821.65
12/31/90 24084.42 24486.27
01/31/91 24886.33 25553.87
02/28/91 26367.82 27380.98
03/31/91 27210.50 28043.60
04/30/91 27591.07 28110.90
05/31/91 28583.26 29325.29
06/30/91 27699.80 27982.19
07/31/91 28542.49 29286.16
08/31/91 29167.70 29980.25
09/30/91 29290.03 29479.58
10/31/91 28719.18 29874.60
11/30/91 28039.59 28670.66
12/31/91 29790.16 31950.58
01/31/92 29854.26 31356.30
02/29/92 30447.18 31763.93
03/31/92 29694.01 31144.53
04/30/92 30270.90 32060.18
05/31/92 31264.44 32217.28
06/30/92 31280.47 31737.24
07/31/92 32241.96 33035.29
08/31/92 31713.14 32358.07
09/30/92 31600.96 32739.89
10/31/92 31857.36 32854.48
11/30/92 33219.47 33974.82
12/31/92 33804.28 34392.71
01/31/93 34440.10 34681.61
02/28/93 35429.15 35153.28
03/31/93 36559.49 35895.02
04/30/93 35853.03 35026.36
05/31/93 36718.45 35965.06
06/30/93 37054.02 36069.36
07/31/93 37866.45 35925.08
08/31/93 40250.76 37286.64
09/30/93 40127.13 36999.54
10/31/93 41416.43 37765.43
11/30/93 39685.59 37406.66
12/31/93 40927.52 37859.28
01/31/94 41318.24 39146.49
02/28/94 39892.12 38085.62
03/31/94 38387.87 36425.09
04/30/94 38700.44 36891.33
05/31/94 38817.65 37496.35
06/30/94 38817.65 36577.69
07/31/94 39794.44 37777.44
08/31/94 40048.41 39326.31
09/30/94 39520.94 38362.82
10/31/94 39130.23 39225.98
11/30/94 37938.54 37797.37
12/30/94 38307.37 38357.90

$10,000 OVER 10 YEARS: Let's say you invested $10,000 in Fidelity Advisor
Strategic Opportunities Fund - Class B on December 31, 1984. As the chart
shows, by December 31, 1994, the value of your investment would have grown
to $38,500 - a 285.00% increase on your initial investment. For comparison,
look at how the S&P 500 did over the same period. With dividends
reinvested, the same $10,000 investment would have grown to $38,358 - a
283.58% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. The stock market,
for example, has a history of
growth in the long run and
volatility in the short run. In
turn, the share price and
return of a fund that invests in
stocks 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)
The fund commenced operations on December 31, 1983 by offering Initial
Class shares. Initial Class shares are sold without a 12b-1 fee. New
investors may not purchase Initial Class shares. If Fidelity had not
reimbursed certain Initial Class expenses during the periods shown, the
total returns would have been lower.
CUMULATIVE TOTAL RETURNS

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED DECEMBER 31, 1994 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

Advisor Strategic Opportunities Fund - Initial -6.35% 48.64% 302.39%
Class

Advisor Strategic Opportunities Fund - Initial -10.80% 41.58% 283.28%
Class (including 4.75% sales charge)

</TABLE>

AVERAGE ANNUAL TOTAL RETURNS

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED DECEMBER 31, 1994 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

Advisor Strategic Opportunities Fund - Initial -6.35% 8.25% 14.94%
Class

Advisor Strategic Opportunities Fund - Initial -10.80% 7.20% 14.38%
Class (including 4.75% sales charge)

</TABLE>

FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
Sharply rising interest rates and
ongoing inflation worries caused
a severe downturn in U.S. bond
markets in 1994. Yields rose
sharply - and prices fell - on
virtually all types of fixed-income
investments. For the 12 months
ended December 31, 1994, the
Lehman Brothers Aggregate
Bond Index - a broad measure
of taxable bonds in the U.S. bond
market - had a total return of
- -2.92%. The Federal Reserve
Board raised the federal funds
rate - the rate banks charge
each other for overnight loans -
from 3.00% to 5.50% from
February to November. The Fed
was hoping to head off future
inflation that might be triggered by
an improving U.S. economy.
However, investors heavily sold
bonds at the very threat of
inflation because inflation
diminishes the value of their
fixed-rate interest payments.
Higher interest rates in many
foreign bond markets followed
the rate hikes in the United
States. Despite disappointing
bond market results, weakness in
the U.S. dollar caused the
Salomon Brothers World
Government Bond Index - a
measure of bond market
performance in developed
nations that includes U.S. issues
- - to post a positive 2.34% return
for the year. The JP Morgan
Emerging Markets Bond Index
was down 18.68% during the
same period, on the heels of
market corrections in many
emerging markets earlier in the
year and Mexico's devaluation of
the peso in December.
An interview with Daniel R. Frank,
Portfolio Manager of Fidelity
Advisor Strategic Opportunities Fund
Q. DAN, HOW HAS THE FUND PERFORMED OVER THE PAST YEAR?
A. Not as well as I would have liked. For the year ended December 31, 1994,
the Class A shares had a total return of -7.17%, and Class B shares had a
total return of -7.22%, lagging the average capital appreciation fund,
which returned -3.38% for the period, according to Lipper Analytical
Services.
Q. WHY DID IT UNDERPERFORM MOST OF ITS PEERS OVER THE PAST YEAR?
A. Mostly because it had a large position in long-duration U.S. Treasury
securities. These securities performed poorly in 1994 due to rising
interest rates and correspondingly reduced bond prices. The fund was also
hurt because it had limited exposure to late-cycle cyclical stocks, which
performed well over the period. Late-cycle cyclicals - such as paper,
steel, chemicals and aluminum - typically turn in their strongest
performance late in an economic upturn, which is where we appeared to be at
the end of the period.
Q. YOUR TOP 10 STOCKS REMAIN DOMINATED BY REGIONAL BELL OPERATING COMPANIES
(RBOCS), WHICH MADE UP ABOUT 25% OF THE FUND AT THE END OF THE PERIOD. HAS
YOUR STAKE IN THESE COMPANIES PAID OFF?
A. As I've suggested in the past, I see RBOCs as a long-term investment
opportunity. Their outlook is good domestically - with many RBOCs cutting
costs and the industry becoming increasingly deregulated, which should
encourage growth. They also have attractive overseas business
opportunities as many developed, as well as developing, countries are
upgrading their phone systems to improve their communications capabilities.
The U.S. regional Bells are major investors in these global opportunities.
I also should point out that these phone companies generally aren't as
susceptible to changes in interest rates as other utilities, such as
electric companies. In fact, I think that in the future RBOCs will be
viewed less as utilities and more like normal global businesses.
Q. FUNDAMENTALLY, HOW DID THE RBOCS PERFORM OVER THE PERIOD?
A. Over the past year, BellSouth, Ameritech, Bell Atlantic and NYNEX have
been successfully lobbying to reduce state rate restrictions that could
impair their profitability. In addition, they've cut costs, rolled out new
products and services for both consumer and business markets, expanded
cellular operations and pursued global opportunities. As a result, I
believe they're well positioned for long-term growth.
Q. LET'S DISCUSS SOME OTHER TRENDS IN THE FUND. BETWEEN SEPTEMBER 1993 AND
DECEMBER 1994, THE FUND'S INVESTMENT IN FINANCIAL STOCKS INCREASED
DRAMATICALLY - FROM ABOUT 3% TO AROUND 10%. WHAT'S BEHIND THIS?
A. My strategy was to increase the fund's investment in financial companies
that I thought would emerge as winners in the consolidating banking
industry. Over the past year, the fund has targeted small banks and savings
and loans across the country, focusing on well-capitalized institutions
with strong local market presence that are healthy and possibly ripe for a
takeover. In fact, in the fall of 1994, financial stocks made up more than
35% of the fund's holding. I've paid special attention to companies with
heavy insider ownership, recent insider purchase activity and ongoing stock
repurchase activity because I think they're working to enhance their stock
value. Because of sell-offs of companies facing corporate takeovers - and
by the fund's profit taking - I have reduced the position back to about
10%.
Q. HOW ABOUT THE FUND'S DECREASE IN FOREIGN HOLDINGS . . .
A. I've steadily reduced its foreign investments from about 18.1% in
September 1993 to 4.8% in September 1994 to around 2.4% in December 1994.
This decrease largely reflects my decision to sell most of the fund's Hong
Kong-based stocks, the bulk of its foreign holdings, in January 1994. While
Hong Kong performed well throughout 1992 and 1993, it collapsed at the
beginning of 1994. The Southeast Asian markets in general and Hong Kong in
particular were inflated by a real estate-driven mania that I felt was
unsustainable.
Q. DAN, DO YOU REGRET ANY OF YOUR INVESTMENT DECISIONS OVER THE PAST YEAR?
A. Sure. I wish I hadn't owned any bonds and that the fund was 100%
invested in chemicals, aluminum, paper and steel, which were all excellent
performers. I should point out that every year for the past decade that
I've run the fund, I've made some investment decisions I've regretted.
However, I've learned not to adjust my overall philosophy of investing to
accommodate the concept "du jour," but rather to invest the fund's assets
for the long term, seeking real value, avoiding fads, and, hopefully,
providing above average long-term returns with below-average risk.
Q. WHAT'S YOUR OUTLOOK FOR THE FUND OVER THE NEXT YEAR?
A. It's hard, if not impossible, to make predictions about the markets over
the next year. However, I do plan to continue to seek out individual
companies whose stock prices represent both value and opportunity.
FUND FACTS
GOAL: to increase the value of
the fund's shares over the
long term by investing in
securities believed to be
involved in a special situation
START DATE: December 31,
1983
SIZE: as of December 31,
1994, more than $410 million
MANAGER: Daniel R. Frank,
since inception; joined Fidelity
in 1979
(checkmark)
DAN FRANK ON INVESTING IN
BABY BELLS:
"First of all, the moniker "Baby
Bell" is highly misleading. The
Baby Bells are, in fact, among
the world's largest and most
profitable businesses. For
example, in 1995 Ameritech
will have revenues
approaching $13 billion and
net income of $1.8 billion, and
BellSouth will have revenues
approaching $18 billion and
net income in excess of $2.2
billion. Ten years ago the
numbers were $8.3 billion and
$990 million for Ameritech
and revenues of $9.6 billion
and net income of $1.25
billion for BellSouth. As you
can see, the Baby Bells are
anything but babies and have
consistent, stable growth
patterns characteristic of
some of the best global
enterprises."
DISTRIBUTIONS
A total of 26.4% of the
dividends distributed during
the fiscal year was derived
from interest on U.S.
Government securities which
is generally exempt from state
income tax.
INVESTMENT CHANGES

TOP TEN STOCKS AS OF DECEMBER 31, 1994
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS AS OF
SEPTEMBER 30, 1994

BellSouth Corp. 5.2 4.5

I-Stat Corporation 5.0 4.4

Ameritech Corp. 4.9 4.4

Bell Atlantic Corp. 4.6 4.0

NYNEX Corp. 4.4 3.4

Southwestern Bell Corp. 4.2 3.5

Viacom, Inc. Class B (non-vtg.) 3.6 2.5

PepsiCo, Inc. 1.5 0.0

Regis Corporation 1.4 1.3

Hershey Foods Corp. 1.3 0.0

TOP FIVE INDUSTRIES AS OF DECEMBER 31, 1994
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE INDUSTRIES AS
OF
SEPTEMBER 30, 1994

Utilities 25.9 24.7

Finance 9.5 38.4

Nondurables 6.3 1.8

Health 6.2 4.4

Media & Leisure 5.2 5.0

ASSET ALLOCATION
AS OF DECEMBER 31, 1994* AS OF SEPTEMBER 30, 1994**
Stocks 66.1%
Bonds 20.0%
Other 0.5%
Short-term
Investments 13.4%
FOREIGN
INVESTMENTS 2.4%
Stocks 82.2%
Bonds 16.5%
Short-term
Investments 1.3%

FOREIGN
INVESTMENTS 4.8%
Row: 1, Col: 1, Value: 13.4
Row: 1, Col: 2, Value: 1.5
Row: 1, Col: 3, Value: 20.0
Row: 1, Col: 4, Value: 30.0
Row: 1, Col: 5, Value: 36.1
Row: 1, Col: 1, Value: 2.0
Row: 1, Col: 2, Value: 16.5
Row: 1, Col: 3, Value: 41.5
Row: 1, Col: 4, Value: 40.0
*
*
*
INVESTMENTS DECEMBER 31, 1994

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 66.1%
SHARES
AEROSPACE & DEFENSE - 0.2%
Alliant Techsystems, Inc. (a) 23,800 $ 966,875
BASIC INDUSTRIES - 0.9%
CHEMICALS & PLASTICS - 0.3%
Minnesota Mining & Manufacturing Co. 20,000 1,067,500
PACKAGING & CONTAINERS - 0.6%
Ball Corp. 32,000 1,008,000
M.C. Packaging 4,000,000 1,550,800
2,558,800
TOTAL BASIC INDUSTRIES 3,626,300
CONSTRUCTION & REAL ESTATE - 1.2%
BUILDING MATERIALS - 0.9%
Masco Corp. 30,000 678,750
Sherwin-Williams Co. 100,000 3,312,459
3,991,209
CONSTRUCTION - 0.3%
Kaufman & Broad Home Corp. 90,000 1,158,750
TOTAL CONSTRUCTION & REAL ESTATE 5,149,959
DURABLES - 0.5%
AUTOS, TIRES, & ACCESSORIES - 0.5%
General Motors Corp. Class E 20,000 770,000
Genuine Parts Company 40,000 1,440,000
2,210,000
ENERGY - 4.7%
COAL - 1.1%
MAPCO, Inc. 92,000 4,715,000
ENERGY SERVICES - 0.4%
Baker Hughes, Inc. 40,000 730,000
Schlumberger Ltd. 20,000 1,007,500
1,737,500
COMMON STOCKS - CONTINUED
SHARES
ENERGY - CONTINUED
OIL & GAS - 3.2%
Amerada Hess Corp. 75,000 $ 3,421,875
Box Energy Corp. Class B (a) 100,000 1,075,000
Exxon Corp. 80,000 4,860,000
Shell Canada Ltd. Class A 60,000 1,829,660
Texaco, Inc. 40,000 2,395,000
13,581,535
TOTAL ENERGY 20,034,035
FINANCE - 9.5%
BANKS - 3.8%
BB & T Financial Corp. 550 15,400
Barnett Banks, Inc. 20,000 767,500
Citizens Bancorp of Maryland 30,000 802,500
F & M Bancorporation, Inc. 20,000 420,000
F & M National Corp. 46,000 730,250
FNB Rochester Corp. (a) 100,000 525,000
First Citizens Bancshares, Inc. 30,000 1,305,000
Jefferson Bankshares, Inc. 52,000 1,027,000
Northern Trust Corp. 10,000 350,000
PNC Financial Corp. 40,000 845,000
Premier Bankshares Corp. 10,000 165,000
RS Financial Corp. 15,000 352,500
Republic New York Corp. 40,000 1,810,000
Riggs National Corp. (a) 242,000 2,026,750
River Forest Bancorp 28,000 917,000
St. Francis Capital Corp. (a) 45,000 630,000
UAB Financial Corp. 27,500 859,375
United Bankshares, Inc. 23,000 540,500
Wachovia Corp. 30,000 967,500
Wilmington Trust Corp. 40,000 910,000
15,966,275
CREDIT & OTHER FINANCE - 0.2%
Life Bancorp, Inc. (a) 110,000 1,017,500
INSURANCE - 0.2%
American General Corp. 30,000 847,500
COMMON STOCKS - CONTINUED
SHARES
FINANCE - CONTINUED
SAVINGS & LOANS - 4.9%
American Federal Bank FSB 120,000 $ 1,290,000
American Savings of Florida FSB (a) 206,000 4,042,750
Bedford Bancshares, Inc. (a) 50,000 525,000
Bell Bancorp, Inc. 30,000 712,500
Boston Bancorp 30,100 876,663
Coastal Bancorp, Inc. 104,000 1,495,000
Coral Gables Fedcorp, Inc. (a) 95,000 2,042,500
FFVA Financial Corp. 35,000 673,750
Fidelity Federal Savings Bank 35,000 376,250
First Financial Holdings, Inc. 105,000 1,680,000
First Palm Beach Bancorp, Inc. 80,000 1,330,000
First Southeast Financial Corp. 82,500 1,072,500
HMN Financial, Inc. (a) 110,000 1,237,500
Home Federal Bancorp 39,000 936,000
NS Bancorp, Inc. 20,000 530,000
Palfed, Inc. (a) 65,000 463,125
Pennfed Financial Services, Inc. (a) 40,000 410,000
Sho-Me Financial Corp. (a) 55,000 543,125
Virginia First Financial Corp. 28,000 343,000
20,579,663
SECURITIES INDUSTRY - 0.4%
Edwards (A.G.), Inc. 35,000 630,000
John Nuveen Co. Class A 40,000 915,000
1,545,000
TOTAL FINANCE 39,955,938
HEALTH - 6.2%
DRUGS & PHARMACEUTICALS - 0.1%
Sepracor, Inc. (a) 70,000 288,750
MEDICAL EQUIPMENT & SUPPLIES - 6.1%
Baxter International, Inc. 120,000 3,390,000
Corvita Corp. (a) 75,000 337,500
I-Stat Corporation (a)(e) 1,093,100 20,768,900
McKesson Corp. 30,000 978,750
25,475,150
TOTAL HEALTH 25,763,900
COMMON STOCKS - CONTINUED
SHARES
HOLDING COMPANIES - 0.2%
Lam Soon (Hong Kong) Ltd. 2,200,000 $ 788,964
INDUSTRIAL MACHINERY & EQUIPMENT - 1.0%
ELECTRICAL EQUIPMENT - 0.5%
ACTV, Inc. (a)(e) 440,000 1,595,000
Mei Ah International 5,000,000 387,700
1,982,700
INDUSTRIAL MACHINERY & EQUIPMENT - 0.5%
Cooper Industries, Inc. 55,000 1,876,875
Sweetwater, Inc. (a) 31,000 193,750
2,070,625
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 4,053,325
MEDIA & LEISURE - 5.2%
BROADCASTING - 5.2%
Viacom, Inc.:
Class B (non-vtg.) (a) 370,000 15,031,250
Class B (warrants) (a) 300,000 1,612,500
Class C (warrants) (a) 1,600,000 5,300,000
21,943,750
NONDURABLES - 6.3%
BEVERAGES - 1.5%
PepsiCo, Inc. 170,000 6,162,500
FOODS - 3.8%
CPC International, Inc. 90,000 4,792,500
Hershey Foods Corp. 115,000 5,563,125
Lam Soon Food Industries Ltd. 3,400,000 641,512
Tootsie Roll Industries, Inc. 69,400 4,268,100
Yaohan Food Process & Trading Co. (a) 4,600,000 725,236
15,990,473
HOUSEHOLD PRODUCTS - 0.8%
Avon Products, Inc. 55,000 3,286,250
COMMON STOCKS - CONTINUED
SHARES
NONDURABLES - CONTINUED
TOBACCO - 0.2%
RJR Nabisco Holdings Corp. (a) 130,000 $ 715,000
TOTAL NONDURABLES 26,154,223
RETAIL & WHOLESALE - 0.1%
GENERAL MERCHANDISE STORES - 0.0%
Federated Department Stores, Inc. (a) 100 1,868
Federated Department Stores, Inc.:
Class C (warrants) (a) 6,306 32,318
Class D (warrants) (a) 6,306 35,471
69,657
GROCERY STORES - 0.1%
Four Seas Mercantile Holdings Ltd. 1,786,000 473,165
RETAIL & WHOLESALE, MISCELLANEOUS - 0.0%
Right Start, Inc. (a) 55,000 116,875
TOTAL RETAIL & WHOLESALE 659,697
SERVICES - 2.9%
PRINTING - 0.2%
Starlite Holdings Ltd. 7,000,000 687,540
SERVICES - 2.7%
Kinder-Care Learning Centers, Inc. (a) 450,000 5,512,500
Regis Corporation (a) 385,000 5,775,000
11,287,500
TOTAL SERVICES 11,975,040
TECHNOLOGY - 0.6%
PHOTOGRAPHIC EQUIPMENT - 0.6%
Showscan Corp. (a)(e) 360,000 2,340,000
COMMON STOCKS - CONTINUED
SHARES
TRANSPORTATION - 1.6%
RAILROADS - 1.6%
CSX Corp. 35,000 $ 2,436,875
Chicago & North Western Holdings Corp. (a) 20,000 385,000
Union Pacific Corp. 85,000 3,878,125
6,700,000
UTILITIES - 25.0%
TELEPHONE SERVICES - 25.0%
Ameritech Corp. 510,000 20,591,250
Bell Atlantic Corp. 390,900 19,447,275
BellSouth Corp. 400,000 21,650,000
NYNEX Corp. 500,000 18,375,000
Pacific Telesis Group 115,000 3,277,500
Southern New England Telecommunications Corp. 110,000 3,533,750
Southwestern Bell Corp. 435,000 17,563,125
104,437,900
TOTAL COMMON STOCKS
(Cost $278,194,432) 276,759,906
NONCONVERTIBLE BONDS - 1.8%
MOODY'S RATINGS PRINCIPAL
(UNAUDITED) AMOUNT (C)
DURABLES - 0.3%
HOME FURNISHINGS - 0.3%
Interco, Inc. 10%, 6/1/01 - $ 1,368,000 1,374,840
RETAIL & WHOLESALE - 0.1%
GENERAL MERCHANDISE STORES - 0.1%
Federated Department Stores, Inc.:
Series A 10.97%, 6/30/99 - 89,571 89,571
Series B 11.29%, 6/30/02 - 133,859 134,863
224,434
SERVICES - 0.5%
EDUCATIONAL SERVICES - 0.5%
Kindercare Learning Centers, Inc.
10 3/8%, 6/1/01 Ba3 $ 2,000,000 $ 2,010,000
NONCONVERTIBLE BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (B) (NOTE 1)
SERVICES - CONTINUED
SERVICES - 0.0%
JWP, Inc. 12%, 4/1/96 (b) - 4,000,000 140,000
TOTAL SERVICES 2,150,000
UTILITIES - 0.9%
GAS - 0.9%
Columbia Gas Systems, Inc. (b):
9.30%, 9/1/01 - 100,000 118,000
10 1/4%, 8/1/11 Caa 1,000,000 1,250,000
9.24%, 12/30/14 - 1,000,000 1,177,500
9.30%, 12/18/19 Caa 1,000,000 1,175,000
3,720,500
TOTAL NONCONVERTIBLE BONDS
(Cost $7,017,792) 7,469,774
U.S. TREASURY OBLIGATIONS - 17.4%
7 1/2%, 10/31/99 Aaa 5,000,000 4,928,100
9 1/8%, 5/15/18 Aaa 20,000,000 22,340,626
Stripped Interest Payment 0%:
2/15/00 Aaa 10,000,000 6,751,900
2/15/12 Aaa 150,000,000 38,724,000
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $74,345,375) 72,744,626
FOREIGN GOVERNMENT OBLIGATIONS (D) - 0.8%
French Government (f):
OAT Strip, 4/25/23 Aaa FRF 100,000 1,657,790
Principal Strip, 4/25/23 Aaa FRF 90,000 1,492,011
TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost $4,561,751) 3,149,801
COMMERCIAL PAPER - 0.5%
Columbia Gas Systems 6.05%, 4/30/96 (b)
(Cost $2,050,000) - $ 2,000,000 $ 2,060,000
REPURCHASE AGREEMENTS - 13.4%
MOODY'S RATINGS MATURITY VALUE
(UNAUDITED) AMOUNT (NOTE 1)
Investments in repurchase agreements,
(U.S.Treasury obligations), in a
joint trading account at 5.77%,
dated 12/30/94 due 1/3/95 $ 56,313,080 $ 56,277,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $422,446,350) $ 418,461,107
CURRENCY ABBREVIATIONS
FRF - French franc
LEGEND
(p) Non-income producing
(q) Non-income producing - issuer filed for protection under the Federal
Bankruptcy Code or is in default of interest payment.
(r) Principal amount is stated in United States dollars unless otherwise
noted.
(s) 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.
(t) Affiliated company (see Note 7 of Notes to Financial Statements).
(u) 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 18.1% AAA, AA, A 18.2%
Baa 0.0% BBB 0.0%
Ba 0.5% BB 0.5%
B 0.0% B 0.0%
Caa 0.6% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.6%
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 1.2%.
INCOME TAX INFORMATION
At December 31, 1994, the aggregate cost of investment securities for
income tax purposes was $423,230,532. Net unrealized depreciation
aggregated $4,769,425 of which $15,388,036 related to appreciated
investment securities and $20,157,461 related to depreciated investment
securities.
At December 31, 1994, the fund had a capital loss carryforward of
approximately $1,141,000 all of which will expire on December 31, 2002.
The fund has elected to defer to its fiscal year ending December 31, 1995
$4,261,000 of losses recognized during the period November 1, 1994 to
December 31, 1994.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS DECEMBER 31, 1994

Investment in securities, at value (including repurchase $ 418,461,107
agreements of $56,277,000) (cost $422,446,350) -
See accompanying schedule

Receivable for investments sold 5,892,229

Receivable for fund shares sold 1,660,434

Dividends, interest and other receivables 1,357,455

Receivable from investment adviser for expense reductions 30,000

TOTAL ASSETS 427,401,225

LIABILITIES

Payable to custodian bank $ 46,487

Payable for investments purchased 14,000,181

Payable for fund shares redeemed 2,283,764

Accrued management fee 267,414

Distribution fees payable 212,252

Other payables and accrued expenses 227,745

TOTAL LIABILITIES 17,037,843

NET ASSETS $ 410,363,382

Net Assets consist of:

Paid in capital $ 420,474,189

Accumulated undistributed net realized gain (loss) on (6,114,968)
investments and foreign currency transactions

Net unrealized appreciation (depreciation) on (3,995,839)
investments and assets and liabilities in foreign
currencies

NET ASSETS $ 410,363,382

CALCULATION OF MAXIMUM OFFERING PRICE $18.70
CLASS A:
NET ASSET VALUE and redemption price per share
($375,690,536 (divided by) 20,087,763 shares)

Maximum offering price per share (100/95.25 of $18.70) $19.63

CLASS B: $18.57
NET ASSET VALUE and offering price per share
($17,090,001 (divided by) 920,278 shares) A

INITIAL CLASS: $18.86
NET ASSET VALUE and redemption price per share
($17,582,845 (divided by) 932,508 shares)

Maximum offering price per share (100/95.25 of $18.86) $19.80

</TABLE>

A REDEMPTION PRICE PER SHARE IS EQUAL TO NET ASSET VALUE LESS ANY
APPLICABLE CONTINGENT DEFERRED SALES CHARGE.
STATEMENT OF OPERATIONS
INVESTMENT INCOME THREE MONTHS YEAR ENDED
ENDED SEPTEMBER 30,
DECEMBER 31, 1994
1994

<TABLE>
<CAPTION>
<S> <C> <C>
Dividends $ 2,125,140 $ 7,634,312

Interest 1,700,478 5,728,849

TOTAL INCOME 3,825,618 13,363,161

EXPENSES

Management fee 645,013 2,222,910
Basic fee

Performance adjustment 37,843 359,674

Transfer agent fees 364,602 1,103,957
Class A

Class B 21,148 7,993

Initial Class 9,567 37,897

Distribution fees 611,292 2,172,076
Class A

Class B 31,856 8,429

Accounting fees and expenses 61,356 215,648

Non-interested trustees' compensation 4,513 2,084

Custodian fees and expenses 10,508 46,885

Registration fees 15,817 141,321
Class A

Class B 4,058 854

Initial Class 6,535 23,159

Audit 44,112 51,746

Miscellaneous 269 89,689

Total expenses before reductions 1,868,489 6,484,322

Expense reductions (110,791) (24,630)

TOTAL EXPENSES AFTER REDUCTIONS 1,757,698 6,459,692

NET INVESTMENT INCOME 2,067,920 6,903,469

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

Investment securities (including realized loss of $1,513 (5,790,745) 8,313,205
and $0 from sales of investments in
affiliated issues, respectively)

Foreign currency transactions 967 (33,012)

Change in net unrealized appreciation (depreciation)
on:

Investment securities (9,641,151) (23,315,297)

Assets and liabilities in foreign currencies (235) (10,361)

NET GAIN (LOSS) (15,431,164) (15,045,465)

NET DECREASE IN NET ASSETS RESULTING FROM $ (13,363,244) $ (8,141,996)
OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C> <C>
THREE MONTHS YEAR ENDED YEAR ENDED
ENDED SEPTEMBER 30, SEPTEMBER 30,
DECEMBER 31, 1994 1993
1994

INCREASE (DECREASE) IN NET ASSETS

Operations $ 2,067,920 $ 6,903,469 $ 5,033,318
Net investment income

Net realized gain (loss) (5,789,778) 8,280,193 25,283,326

Change in net unrealized appreciation (9,641,386) (23,325,658) 25,715,063
(depreciation)

NET INCREASE (DECREASE) IN NET ASSETS (13,363,244) (8,141,996) 56,031,707
RESULTING FROM OPERATIONS

Distributions to shareholders from:
Net investment income

Class A (6,826,359) (5,752,632) (5,678,505)

Class B (382,214) - -

Initial Class (464,141) (458,027) (627,961)

Net realized gain

Class A (5,071,018) (22,876,692) (12,054,370)

Class B (211,573) - -

Initial Class (241,353) (1,535,740) (1,085,476)

TOTAL DISTRIBUTIONS (13,196,658) (30,623,091) (19,446,312)

Share transactions - net increase 23,899,770 161,198,427 41,361,732
(decrease)

TOTAL INCREASE (DECREASE) IN NET (2,660,132) 122,433,340 77,947,127
ASSETS

NET ASSETS

Beginning of period 413,023,514 290,590,174 212,643,047

End of period (including undistributed $ 410,363,382 $ 413,023,514 $ 290,590,174
net investment income of $0,
$5,875,182, and $8,916,803,
respectively)

</TABLE>

FINANCIAL HIGHLIGHTS CLASS A

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
THREE MONTHS YEARS ENDED SEPTEMBER 30,
ENDED
DECEMBER 31,

1994 1994 1993 1992 D 1991 1990

SELECTED PER-SHARE DATA

Net asset value, $ 19.96 $ 22.52 $ 19.53 $ 21.38 $ 17.21 $ 19.55
beginning of period

Income from Investment
Operations

Net investment .10 F .39 F .33 .61 .66 .70
income

Net realized and (.75) (.81) 4.44 .58 4.26 (2.49)
unrealized gain (loss)
on investments

Total from invest- (.65) (.42) 4.77 1.19 4.92 (1.79)
ment operations

Less Distributions

From net investment (.35) (.43) (.57) (.62) (.75) (.55)
income

From net (.26) (1.71) (1.21) (2.42) - -
realized gain

Total distributions (.61) (2.14) (1.78) (3.04) (.75) (.55)

Net asset value, end $ 18.70 $ 19.96 $ 22.52 $ 19.53 $ 21.38 $ 17.21
of period

TOTAL RETURN A, B (3.26)% (2.24) 26.33% 7.26 29.51 (9.49)
% % % %

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period $ 375,691 $ 385,349 $ 269,833 $ 194,710 $ 199,604 $ 172,086
(000 omitted)

Ratio of expenses to 1.73% E, 1.84% 1.57% 1.46 1.56 1.59%
average net assets G C % %

Ratio of expenses to 1.84% E 1.85% 1.73% 1.46 1.56 1.59%
average net assets % %
before expense
reductions

Ratio of net investment 2.03% E 1.89% 2.06% 3.22 3.61 3.70%
income to average % %
net assets

Portfolio turnover 228% E 1.59% 183% 211 223 114%
% %

</TABLE>

A 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.
B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C INCLUDES REIMBURSEMENT OF $.03 PER SHARE FROM FIDELITY MANAGEMENT &
RESEARCH COMPANY FOR ADJUSTMENTS TO PRIOR PERIOD'S FEES.
D AS OF OCTOBER 1, 1991, THE FUND DISCONTINUED THE USE OF EQUALIZATION
ACCOUNTING.
E ANNUALIZED
F NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
G INCLUDES THE EFFECT OF ANNUALIZING A VOLUNTARY REIMBURSEMENT OF FEES BY
FMR. SEE NOTE 6 OF NOTES TO FINANCIAL STATEMENTS.
FINANCIAL HIGHLIGHTS CLASS B

<TABLE>
<CAPTION>
<S> <C> <C>
SELECTED PER-SHARE DATA THREE YEAR ENDED
MONTHS SEPTEMBER 30,
ENDED 1994 C
DECEMBER 31,
1994

Net asset value, beginning of period $ 19.98 $ 19.65

Income from Investment Operations

Net investment income .06 E .05 E

Net realized and unrealized gain (loss) on investments (.74) .28

Total from investment operations (.68) .33

Less Distributions

From net investment income (.47) -

From net realized gain (.26) -

Total distributions (.73) -

Net asset value, end of period $ 18.57 $ 19.98

TOTAL RETURN A, B (3.41)% 1.68%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 17,090 $ 8,824

Ratio of expenses to average net assets 2.53% 2.63% D
D

Ratio of expenses to average net assets before expense 2.58% 2.84% D
reductions D

Ratio of net investment income to average net assets 1.22% 1.11% D
D

Portfolio turnover 228% 159% D
D

</TABLE>

A 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.
B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C FOR THE PERIOD JUNE 30, 1994 (COMMENCEMENT OF SALE OF CLASS B SHARES) TO
SEPTEMBER 30, 1994.
D ANNUALIZED
E NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
NOTES TO FINANCIAL STATEMENTS
For the period ended December 31, 1994

1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Advisor Strategic Opportunities Fund (the fund) is a fund of
Fidelity Advisor Series VIII (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. On November
9, 1994, the Board of Trustees approved a change in the fiscal year-end of
the trust to December 31. Accordingly, the financial statements of the fund
are presented for the three-month period ended December 31, 1994.
The fund offers Class A, Class B, and Initial Class shares, each of which
has equal rights as to assets and voting privileges. Each class has
exclusive voting rights with respect to its distribution plan. The fund
commenced sale of Class B shares on June 30, 1994. Investment income,
realized and unrealized capital gains and losses, and the common expenses
of the fund are allocated on a prorata basis to each class based on the
relative net assets of each class to the total net assets of the fund. Each
class of shares differs in its respective distribution, transfer agent,
registration, and certain other class-specific fees and expenses.
The following summarizes the significant accounting policies of the fund:
SECURITY VALUATION. Securities for which exchange quotations are readily
available are valued at the last sale price, or if no sale price, at the
closing bid price. Securities for which exchange quotations are not readily
available (and in certain cases debt securities which trade on an
exchange), 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.
Reported net realized gains and losses on foreign currency transactions
represent 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 not segregated in the Statement of Operations
from the effects of changes in market prices of those securities, but are
included with the net realized and unrealized gain or loss on investment in
securities.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
INCOME TAXES - CONTINUED
not subject to income taxes to the extent that it distributes 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. Dividend income is recorded on the ex-dividend date,
except certain dividends from foreign securities where the ex-dividend date
may have passed, are recorded as soon as the fund is informed of the
ex-dividend date. Interest income is accrued as earned. Investment income
is recorded net of foreign taxes withheld where recovery of such taxes is
uncertain.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date. Income dividends are declared separately for each class,
while capital gain distributions are declared at the fund level and
allocated to each class on a prorata basis based on the number of shares
held by each class 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 are primarily due to differing treatments for
foreign currency transactions, market discount, and losses deferred due to
wash sales. The fund also utilized earnings and profits distributed to
shareholders on redemption of shares as a part of the dividends paid
deduction for income tax purposes.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect net investment income per share. 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 enter into forward foreign
currency contracts. The U.S. dollar value of forward foreign currency
contracts is determined using forward currency exchange rates supplied by a
quotation service. Losses may arise due to changes in the value of the
foreign currency or if the counterparty does not perform under the
contract.
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.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. The fund's investment
adviser, Fidelity Management & Research Company (FMR), is responsible for
determining that the value of these underlying securities remains at least
equal to the resale price.
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 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, and are collateralized by U.S. Treasury or Federal Agency
obligations.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $215,976,403 and $245,921,688, respectively, of which U.S.
government and government agency obligations aggregated $16,542,169 and $0,
respectively.
4. FEES AND OTHER
TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly
basic 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 .2700% to .5200% for the period October 1, 1994 to
December 31, 1994. In the event that these rates were lower than the
contractual rates in effect during those periods, FMR voluntarily
implemented the above rates, as they resulted in the same or a lower
management fee. The annual individual fund fee rate is .30%. The basic fee
is subject to a performance adjustment (up to a maximum of (plus/minus)
.20%) based on the fund's investment performance as compared to the
appropriate index over a specified period of time. For the period, the
management fee was equivalent to an annualized rate of .67% of average net
assets after the performance adjustment.
DISTRIBUTION AND SERVICE PLAN. In accordance with Rule 12b-1 of the 1940
Act, the Trustees have adopted separate distribution plans with respect to
the fund's Class A shares ("Class A Plan") and Class B shares ("Class B
Plan"), pursuant to which the fund pays Fidelity Distributors Corporation
(FDC), an affiliate of FMR, a distribution and service fee. This fee is
based on annual rates of .65% and 1.00% (of which .75% represents a
distribution fee and .25% represents a shareholder service fee) of the
average net assets of the Class A and Class B shares, respectively. For the
period, the fund paid FDC $611,292 and $31,856 under the Class A Plan and
Class B Plan, respectively, of which $470,225 and $7,964 were paid to
securities dealers, banks and other financial institutions for the
distribution of Class A and Class B shares, and providing shareholder
support services.
In addition, FMR or FDC may use its resources to pay administrative and
promotional expenses related to the sale of the fund's shares. Subject to
the approval of the Board of Trustees, the Plans also authorize payments to
third parties that assist in the sale of the fund's shares or render
shareholder support services. FMR or FDC has informed the fund that
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
DISTRIBUTION AND SERVICE PLAN - CONTINUED
payments made to third parties under the Class A Plan and the Class B Plan
amounted to $24,520 and $58, respectively, for the period.
SALES LOAD. FDC receives a front-end sales charge of up to 4.75% for
selling Class A and Initial Class shares of the fund. For the period, FDC
received sales charges of $553,970 on sales of Class A shares and Initial
Class shares of the fund, of which $322,059 was paid to security dealers,
banks, and other financial institutions. FDC also receives the proceeds of
a contingent deferred sales charge levied on Class B share redemptions
occurring within five years of purchase. The charge is based on declining
rates which range from 4% to 1% of the lesser of the cost of shares at the
initial date of purchase or the net asset value of the redeemed shares,
excluding any reinvested dividends and capital gains. For the period, FDC
received contingent deferred sales charges of $12,037 on Class B share
redemptions from the fund. When Class B shares are sold, FDC pays
commissions from its own resources to dealers through which the sales are
made.
TRANSFER AGENT FEES. State Street Bank and Trust Company (State Street),
Fidelity Investments Institutional Operations Company (FIIOC), an affiliate
of FMR, and Fidelity Service Co. (FSC), also an affiliate of FMR,
(collectively referred to as the Transfer Agents) are the transfer,
dividend disbursing, and shareholder servicing agents for the fund's Class
A shares, Class B shares, and Initial Class shares, respectively. The
Transfer Agents receive fees based on the type, size, number of accounts,
and the number of transactions made by shareholders of the respective
classes of the fund. With respect to the Class A shares, State Street has
delegated certain transfer, dividend paying, and shareholder services to
FIIOC for which FIIOC receives its allocable share of all such fees. FIIOC
and FSC pay for typesetting, printing and mailing of all shareholder
reports, except proxy statements.
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.
BROKERAGE COMMISSIONS. The fund placed a portion of its portfolio
transactions with brokerage firms which are affiliates of FMR. The
commissions paid to these affiliated firms were $70,462 for the period.
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 periods for
which loans were outstanding amounted to $1,013,000 and $938,500,
respectively.
5. BANK BORROWINGS -
CONTINUED
The weighted average interest rate was 5.15%. Miscellaneous expense
includes interest expense of $269 paid under the bank borrowing program.
6. EXPENSE REDUCTIONS.
FMR has directed certain portfolio trades to brokers who paid a portion of
the fund's expenses. For the period, the fund's expenses were reduced by
$6,320 or an annualized rate of .01% of average net assets under this
arrangement.
In addition, FMR voluntarily agreed to reimburse a portion of the fund's
audit expenses and certain other expenses for Class A. For the period, the
reimbursement reduced audit expenses by $30,000 or an annualized rate of
.03% of the fund's average net assets, and reduced other expenses of Class
A by $74,471 or an annualized rate of .08% of the class' average net
assets.
7. TRANSACTIONS WITH AFFILIATED COMPANIES.
An affiliated company is a company in which the fund has ownership of at
least 5% of the voting securities. Transactions with companies which are or
were affiliates are as follows:
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES
PURCHASE SALES DIVIDEND MARKET
AFFILIATE COST COST INCOME VALUE
ACTV, Inc. (a) $ - $ 76,325 $ - $ 1,595,000
I-Stat Corporation (a) - - - 20,768,900
Showscan Corp. (a) - - - 2,340,000
TOTALS $ - $ 76,325 $ - $ 24,703,900
(a) Non-income producing.
8. SHARE TRANSACTIONS.
Share transactions for the three classes were as follows:
SHARES
THREE MONTHS ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, SEPTEMBER 30, SEPTEMBER 30,
1994 1994 A 1993
CLASS A
Shares sold 1,516,748 9,950,363 3,301,716
Reinvestment of distributions 494,691 946,630 578,982
Shares redeemed (1,234,112) (3,569,676) (1,866,302)
Net increase (decrease) 777,327 7,327,317 2,014,396
CLASS B
Shares sold 485,395 444,178 -
Reinvestment of distributions 29,181 - -
Shares redeemed (36,053) (2,423) -
Net increase (decrease) 478,523 441,755 -
INITIAL CLASS
Shares sold 22,104 10,959 13,084
Reinvestment of distributions 32,999 86,923 82,900
Shares redeemed (54,526) (77,300) (94,063)
Net increase (decrease) 577 20,582 1,921

DOLLARS
THREE MONTHS ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, SEPTEMBER 30, SEPTEMBER 30,
1994 1994 A 1993
CLASS A
Shares sold $ 29,239,750 $ 204,646,521 $ 68,310,190
Reinvestment of distributions 9,270,516 19,661,509 10,786,432
Shares redeemed (23,824,539) (72,396,373) (37,662,274)
Net increase (decrease) $ 14,685,727 $ 151,911,657 $ 41,434,348
CLASS B
Shares sold $ 9,362,672 $ 8,900,939 $ -
Reinvestment of distributions 542,478 - -
Shares redeemed (702,223) (48,808) -
Net increase (decrease) $ 9,202,927 $ 8,852,131 $ -
INITIAL CLASS
Shares sold $ 432,827 $ 228,789 $ 304,306
Reinvestment of distributions 623,021 1,818,425 1,550,218
Shares redeemed (1,044,732) (1,612,575) (1,927,140)
Net increase (decrease) $ 11,116 $ 434,639 $ (72,616)
A SHARE TRANSACTIONS FOR CLASS B ARE FOR THE PERIOD JUNE 30, 1994
(COMMENCEMENT OF SALE OF SHARES) TO SEPTEMBER 30, 1994.
REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees of Fidelity Advisor Series VIII and the Shareholders of
Fidelity Advisor Strategic Opportunities Fund:
We have audited the accompanying statement of assets and liabilities of
Fidelity Advisor Series VIII: Fidelity Advisor Strategic Opportunities
Fund, including the schedule of portfolio investments, as of December 31,
1994, and the related statements of operations for the three month period
then ended and the year ended September 30, 1994, the statements of
changes in net assets for the three month period ended December 31, 1994
and for each of the two years in the period ended September 30, 1994, and
the financial highlights for the three month period ended December 31,
1994 and for each of the five years in the period ended September 30, 1994
(Class A and Initial Class) and for the three month period ending December
31, 1994 and the period June 30, 1994 (commencement of sale of Class B
shares) to September 30, 1994 . These financial statements and financial
highlights are the responsibility of the fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1994 by correspondence with the
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Advisor Series VIII: Fidelity Advisor Strategic Opportunities
Fund as of December 31, 1994, the results of its operations for the three
month period then ended and the year ended September 30, 1994, the changes
in its net assets for the three month period ended December 31, 1994 and
each of the two years in the period ended September 30, 1994, and the
financial highlights for the three month period ended December 31, 1994
and for each of the five years in the period ended September 30, 1994
(Class A and Initial Class) and for the three month period ending December
31, 1994 and the period June 30, 1994 (commencement of sale of Class B
shares) to September 30, 1994 , in conformity with generally accepted
accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
February 9, 1995
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Daniel R. Frank, Vice President
William J. Hayes, Vice President
Arthur S. Loring, Secretary
Gary L. French, Treasurer
Leonard M. Rush, Assistant Treasurer
John H. Costello, Assistant Treasurer
Robert H. Morrison, Manager,
Security Transactions
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
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
State Street Bank and Trust Company
Boston, MA - Class A
Fidelity Investments Institutional
Operations Company
Boston, MA - Class B
CUSTODIAN
Brown Brothers Harriman & Co.
Boston, MA
EQUITY FUNDS
Fidelity Advisor Overseas Fund
Fidelity Advisor Equity Portfolio Growth
Fidelity Advisor Global Resources Fund
Fidelity Advisor Growth
Opportunities Fund
Fidelity Advisor Strategic
Opportunities Fund
GROWTH AND INCOME FUNDS
Fidelity Advisor Equity Portfolio Income
Fidelity Advisor Income & Growth Fund
INCOME FUNDS
Fidelity Advisor Emerging Markets Income Fund
Fidelity Advisor High Yield Fund
Fidelity Advisor Strategic Income Fund
Fidelity Advisor Government Investment Fund
Fidelity Advisor Limited Term Bond Fund
Fidelity Advisor Short Fixed-Income Fund
TAX-EXEMPT FUNDS
Fidelity Advisor High Income
Municipal Fund
Fidelity Advisor Limited Term Tax-Exempt Fund
Fidelity Advisor Short-Intermediate Tax-Exempt Fund
MONEY MARKET FUNDS
Daily Money Fund: Money Market Portfolio
Daily Money Fund: U.S. Treasury Portfolio
Daily Tax-Exempt Money Fund
(REGISTERED TRADEMARK)
(registered trademark)

(2_FIDELITY_LOGOS)FIDELITY ADVISOR

STRATEGIC OPPORTUNITIES
FUND - INITIAL CLASS
ANNUAL REPORT
DECEMBER 31, 1994
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on stock market
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 19 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 25 Notes to the financial statements.

REPORT OF INDEPENDENT 31 The auditors' opinion.
ACCOUNTANTS

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, THE FEDERAL
RESERVE BOARD OR
ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISK, INCLUDING THE
POSSIBLE LOSS OF
PRINCIPAL. NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A
BANK. FOR MORE
INFORMATION ON ANY FIDELITY ADVISOR FUND, INCLUDING CHARGES AND EXPENSES,
CONTACT YOUR
INVESTMENT PROFESSIONAL FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU
INVEST OR SEND
MONEY.
PRESIDENT'S MESSAGE

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED DECEMBER 31, 1994 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

Advisor Strategic Opportunities - Initial Class -6.35% 48.64% 302.39%

Advisor Strategic Opportunities - Initial Class
(incl. 4.75% sales charge) -10.80% 41.58% 283.28%

S&P 500(registered trademark) 1.32% 51.77% 283.58%

Average Capital Appreciation Fund -3.38% 54.58% 228.09%

</TABLE>

CUMULATIVE TOTAL RETURNS show Initial Class' performance in percentage
terms over a set period - in this case, one year, five years, or 10 years.
For example, if you invested $1,000 in a fund that had a 5% return over the
past year, you would end up with $1,050. You can compare Initial Class'
returns to those of the Standard & Poor's Composite Index of 500 Stocks - a
common proxy for the U.S. stock market. To measure how Initial Class'
performance stacked up against its peers, you can compare it to the average
capital appreciation fund, which currently reflects the performance of 139
capital appreciation funds with similar objectives tracked by Lipper
Analytical Services. These benchmarks include reinvested dividends and
capital gains, if any, and exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED DECEMBER 31, 1994 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

Advisor Strategic Opportunities - Initial Class -6.35% 8.25% 14.94%

Advisor Strategic Opportunities - Initial Class
(incl. 4.75% sales charge) -10.80% 7.20% 14.38%

S&P 500 1.32% 8.70% 14.39%

Average Capital Appreciation Fund -3.38% 8.70% 11.83%

</TABLE>

AVERAGE ANNUAL TOTAL RETURNS take the Initial Class shares' actual (or
cumulative) return and show you what would have happened if Initial Class
shares had performed at a constant rate each year.
$10,000 OVER 10 YEARS

$38,358
$38,328
$10,000 OVER 10 YEARS: Let's say you invested $10,000 in Fidelity Advisor
Strategic Opportunities Fund - Initial Class on December 31, 1984, and paid
the maximum 4.75% sales charge. As the chart shows, by December 31, 1994,
the value of your investment would have grown to $38,328 - a 283.28%
increase on your initial investment. For comparison, look at how the S&P
500 did over the same period. With dividends reinvested, the same $10,000
investment would have grown to $38,358 - a 283.58% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. The stock market,
for example, has a history of
growth in the long run and
volatility in the short run. In
turn, the share price and
return of a fund that invests in
stocks 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)
On August 20, 1986, the fund began offering Class A shares, and on June 30,
1994, the fund began offering Class B shares. All performance information
for Class A prior to August 20, 1986 reflects the performance of Initial
Class and therefore does not reflect Class A's 12b-1 fee and different
transfer agent fee arrangements (see Notes to Financial Statements), which
if included, would have lowered Class A's performance. All performance
information for Class B prior to June 30, 1994 reflects the performance of
Initial Class up to August 19, 1986 and the performance of Class A
thereafter and therefore does not reflect Class B's different 12b-1 fee and
revised transfer agent fee arrangements (see Notes to Financial
Statements), which if included, would have lowered Class B's performance.
Class B's contingent deferred sales charge included in the past 1 year,
past 5 years and past 10 years total return figures are 4%, 1% and 0%,
respectively. If Fidelity had not reimbursed certain Class A and Class B
expenses during the periods shown, the total returns would have
been lower.
CUMULATIVE TOTAL RETURNS

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED DECEMBER 31, 1994 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

Advisor Strategic Opportunities Fund - Class A -7.17% 44.18% 285.19%

Advisor Strategic Opportunities Fund - Class A
(including 4.75% sales charge) -11.58% 37.33% 266.89%

Advisor Strategic Opportunities Fund - Class B -7.22% 44.11% 285.00%

Advisor Strategic Opportunities Fund - Class B
(including contingent deferred sales charge) -10.79% 43.17% 285.00%

</TABLE>

AVERAGE ANNUAL TOTAL RETURNS

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED DECEMBER 31, 1994 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

Advisor Strategic Opportunities Fund - Class A -7.17% 7.59% 14.44%

Advisor Strategic Opportunities Fund - Class A
(including 4.75% sales charge) -11.58% 6.55% 13.88%

Advisor Strategic Opportunities Fund - Class B -7.22% 7.58% 14.43%

Advisor Strategic Opportunities Fund - Class B
(including contingent deferred sales charge) -10.79% 7.44% 14.43%

</TABLE>

FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
Sharply rising interest rates and
ongoing inflation worries caused
a severe downturn in U.S. bond
markets in 1994. Yields rose
sharply - and prices fell - on
virtually all types of fixed-income
investments. For the 12 months
ended December 31, 1994, the
Lehman Brothers Aggregate
Bond Index - a broad measure
of taxable bonds in the U.S. bond
market - had a total return of
- -2.92%. The Federal Reserve
Board raised the federal funds
rate - the rate banks charge
each other for overnight loans -
from 3.00% to 5.50% from
February to November. The Fed
was hoping to head off future
inflation that might be triggered by
an improving U.S. economy.
However, investors heavily sold
bonds at the very threat of
inflation because inflation
diminishes the value of their
fixed-rate interest payments.
Higher interest rates in many
foreign bond markets followed
the rate hikes in the United
States. Despite disappointing
bond market results, weakness in
the U.S. dollar caused the
Salomon Brothers World
Government Bond Index - a
measure of bond market
performance in developed
nations that includes U.S. issues
- - to post a positive 2.34% return
for the year. The JP Morgan
Emerging Markets Bond Index
was down 18.68% during the
same period, on the heels of
market corrections in many
emerging markets earlier in the
year and Mexico's devaluation of
the peso in December.
An interview with Daniel R. Frank,
Portfolio Manager of Fidelity
Advisor Strategic Opportunities Fund
Q. DAN, HOW HAS THE FUND PERFORMED OVER THE PAST YEAR?
A. Not as well as I would have liked. For the year ended December 31, 1994,
the Initial Class had a total return of -6.35%, lagging the average capital
appreciation fund, which returned -3.38% for the period, according to
Lipper Analytical Services.
Q. WHY DID IT UNDERPERFORM MOST OF ITS PEERS OVER THE PAST YEAR?
A. Mostly because it had a large position in long-duration U.S. Treasury
securities. These securities performed poorly in 1994 due to rising
interest rates and correspondingly reduced bond prices. The fund was also
hurt because it had limited exposure to late-cycle cyclical stocks, which
performed well over the period. Late-cycle cyclicals - such as paper,
steel, chemicals and aluminum - typically turn in their strongest
performance late in an economic upturn, which is where we appeared to be at
the end of the period.
Q. YOUR TOP 10 STOCKS REMAIN DOMINATED BY REGIONAL BELL OPERATING COMPANIES
(RBOCS), WHICH MADE UP ABOUT 25% OF THE FUND AT THE END OF THE PERIOD. HAS
YOUR STAKE IN THESE COMPANIES PAID OFF?
A. As I've suggested in the past, I see RBOCs as a long-term investment
opportunity. Their outlook is good domestically - with many RBOCs cutting
costs and the industry becoming increasingly deregulated, which should
encourage growth. They also have attractive overseas business opportunities
as many developed, as well as developing, countries are upgrading their
phone systems to improve their communications capabilities. The U.S.
regional Bells are major investors in these global opportunities. I also
should point out that these phone companies generally aren't as susceptible
to changes in interest rates as other utilities, such as electric
companies. In fact, I think that in the future RBOCs will be viewed less as
utilities and more like normal global businesses.
Q. FUNDAMENTALLY, HOW DID THE RBOCS PERFORM OVER THE PERIOD?
A. Over the past year, BellSouth, Ameritech, Bell Atlantic and NYNEX have
been successfully lobbying to reduce state rate restrictions that could
impair their profitability. In addition, they've cut costs, rolled out new
products and services for both consumer and business markets, expanded
cellular operations and pursued global opportunities. As a result, I
believe they're well positioned for long-term growth.
Q. LET'S DISCUSS SOME OTHER TRENDS IN THE FUND. BETWEEN SEPTEMBER 1993 AND
DECEMBER 1994, THE FUND'S INVESTMENT IN FINANCIAL STOCKS INCREASED
DRAMATICALLY - FROM ABOUT 3% TO AROUND 10%. WHAT'S BEHIND THIS?
A. My strategy was to increase the fund's investment in financial companies
that I thought would emerge as winners in the consolidating banking
industry. Over the past year, the fund has targeted small banks and savings
and loans across the country, focusing on well-capitalized institutions
with strong local market presence that are healthy and possibly ripe for a
takeover. In fact, in the fall of 1994, financial stocks made up more than
35% of the fund's holdings. I've paid special attention to companies with
heavy insider ownership, recent insider purchase activity and ongoing stock
repurchase activity because I think they're working to enhance their stock
value. Because of sell-offs of companies facing corporate takeovers - and
by the fund's profit taking - I have reduced the position back to about
10%.
Q. HOW ABOUT THE FUND'S DECREASE IN FOREIGN HOLDINGS . . .
A. I've steadily reduced its foreign investments from about 18.1% in
September 1993 to 4.8% in September 1994 to around 2.4% in December 1994.
This decrease largely reflects my decision to sell most of the fund's Hong
Kong-based stocks, the bulk of its foreign holdings, in January 1994. While
Hong Kong performed well throughout 1992 and 1993, it collapsed at the
beginning of 1994. The Southeast Asian markets in general and Hong Kong in
particular were inflated by a real estate-driven mania that I felt was
unsustainable.
Q. DAN, DO YOU REGRET ANY OF YOUR INVESTMENT DECISIONS OVER THE PAST YEAR?
A. Sure. I wish I hadn't owned any bonds and that the fund was 100%
invested in chemicals, aluminum, paper and steel, which were all excellent
performers. I should point out that every year for the past decade that
I've run the fund, I've made some investment decisions I've regretted.
However, I've learned not to adjust my overall philosophy of investing to
accommodate the concept "du jour," but rather to invest the fund's assets
for the long term, seeking real value, avoiding fads, and, hopefully,
providing above average long-term returns with below-average risk.
Q. WHAT'S YOUR OUTLOOK FOR THE FUND OVER THE NEXT YEAR?
A. It's hard, if not impossible, to make predictions about the markets over
the next year. However, I do plan to continue to seek out individual
companies whose stock prices represent both value and opportunity.
FUND FACTS
GOAL: to increase the value
of the fund's shares over the
long term by investing in
securities believed to be
involved in a special situation
START DATE: December 31,
1983
SIZE: as of December 31, 1994,
more than $410 million
MANAGER: Daniel R. Frank,
since inception; joined
Fidelity in 1979
(checkmark)
DAN FRANK ON INVESTING IN
BABY BELLS:
"First of all, the moniker "Baby
Bell" is highly misleading. The
Baby Bells are, in fact, among
the world's largest and most
profitable businesses. For
example, in 1995 Ameritech
will have revenues
approaching $13 billion and
net income of $1.8 billion, and
BellSouth will have revenues
approaching $18 billion and
net income in excess of $2.2
billion. Ten years ago the
numbers were $8.3 billion and
$990 million for Ameritech
and revenues of $9.6 billion
and net income of $1.25
billion for BellSouth. As you
can see, the Baby Bells are
anything but babies and have
consistent, stable growth
patterns characteristic of
some of the best global
enterprises."
DISTRIBUTIONS
A total of 26.4% of the
dividends distributed during
the fiscal year was derived
from interest on U.S.
Government securities which
is generally exempt from state
income tax.
INVESTMENT CHANGES

TOP TEN STOCKS AS OF DECEMBER 31, 1994
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS AS OF
SEPTEMBER 30, 1994

BellSouth Corp. 5.2 4.5

I-Stat Corporation 5.0 4.4

Ameritech Corp. 4.9 4.4

Bell Atlantic Corp. 4.6 4.0

NYNEX Corp. 4.4 3.4

Southwestern Bell Corp. 4.2 3.5

Viacom, Inc. Class B (non-vtg.) 3.6 2.5

PepsiCo, Inc. 1.5 0.0

Regis Corporation 1.4 1.3

Hershey Foods Corp. 1.3 0.0

TOP FIVE INDUSTRIES AS OF DECEMBER 31, 1994
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE INDUSTRIES AS
OF
SEPTEMBER 30, 1994

Utilities 25.9 24.7

Finance 9.5 38.4

Nondurables 6.3 1.8

Health 6.2 4.4

Media & Leisure 5.2 5.0

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 66.1%
SHARES
AEROSPACE & DEFENSE - 0.2%
Alliant Techsystems, Inc. (a) 23,800 $ 966,875
BASIC INDUSTRIES - 0.9%
CHEMICALS & PLASTICS - 0.3%
Minnesota Mining & Manufacturing Co. 20,000 1,067,500
PACKAGING & CONTAINERS - 0.6%
Ball Corp. 32,000 1,008,000
M.C. Packaging 4,000,000 1,550,800
2,558,800
TOTAL BASIC INDUSTRIES 3,626,300
CONSTRUCTION & REAL ESTATE - 1.2%
BUILDING MATERIALS - 0.9%
Masco Corp. 30,000 678,750
Sherwin-Williams Co. 100,000 3,312,459
3,991,209
CONSTRUCTION - 0.3%
Kaufman & Broad Home Corp. 90,000 1,158,750
TOTAL CONSTRUCTION & REAL ESTATE 5,149,959
DURABLES - 0.5%
AUTOS, TIRES, & ACCESSORIES - 0.5%
General Motors Corp. Class E 20,000 770,000
Genuine Parts Company 40,000 1,440,000
2,210,000
ENERGY - 4.7%
COAL - 1.1%
MAPCO, Inc. 92,000 4,715,000
ENERGY SERVICES - 0.4%
Baker Hughes, Inc. 40,000 730,000
Schlumberger Ltd. 20,000 1,007,500
1,737,500
COMMON STOCKS - CONTINUED
SHARES
ENERGY - CONTINUED
OIL & GAS - 3.2%
Amerada Hess Corp. 75,000 $ 3,421,875
Box Energy Corp. Class B (a) 100,000 1,075,000
Exxon Corp. 80,000 4,860,000
Shell Canada Ltd. Class A 60,000 1,829,660
Texaco, Inc. 40,000 2,395,000
13,581,535
TOTAL ENERGY 20,034,035
FINANCE - 9.5%
BANKS - 3.8%
BB & T Financial Corp. 550 15,400
Barnett Banks, Inc. 20,000 767,500
Citizens Bancorp of Maryland 30,000 802,500
F & M Bancorporation, Inc. 20,000 420,000
F & M National Corp. 46,000 730,250
FNB Rochester Corp. (a) 100,000 525,000
First Citizens Bancshares, Inc. 30,000 1,305,000
Jefferson Bankshares, Inc. 52,000 1,027,000
Northern Trust Corp. 10,000 350,000
PNC Financial Corp. 40,000 845,000
Premier Bankshares Corp. 10,000 165,000
RS Financial Corp. 15,000 352,500
Republic New York Corp. 40,000 1,810,000
Riggs National Corp. (a) 242,000 2,026,750
River Forest Bancorp 28,000 917,000
St. Francis Capital Corp. (a) 45,000 630,000
UAB Financial Corp. 27,500 859,375
United Bankshares, Inc. 23,000 540,500
Wachovia Corp. 30,000 967,500
Wilmington Trust Corp. 40,000 910,000
15,966,275
CREDIT & OTHER FINANCE - 0.2%
Life Bancorp, Inc. (a) 110,000 1,017,500
INSURANCE - 0.2%
American General Corp. 30,000 847,500
COMMON STOCKS - CONTINUED
SHARES
FINANCE - CONTINUED
SAVINGS & LOANS - 4.9%
American Federal Bank FSB 120,000 $ 1,290,000
American Savings of Florida FSB (a) 206,000 4,042,750
Bedford Bancshares, Inc. (a) 50,000 525,000
Bell Bancorp, Inc. 30,000 712,500
Boston Bancorp 30,100 876,663
Coastal Bancorp, Inc. 104,000 1,495,000
Coral Gables Fedcorp, Inc. (a) 95,000 2,042,500
FFVA Financial Corp. 35,000 673,750
Fidelity Federal Savings Bank 35,000 376,250
First Financial Holdings, Inc. 105,000 1,680,000
First Palm Beach Bancorp, Inc. 80,000 1,330,000
First Southeast Financial Corp. 82,500 1,072,500
HMN Financial, Inc. (a) 110,000 1,237,500
Home Federal Bancorp 39,000 936,000
NS Bancorp, Inc. 20,000 530,000
Palfed, Inc. (a) 65,000 463,125
Pennfed Financial Services, Inc. (a) 40,000 410,000
Sho-Me Financial Corp. (a) 55,000 543,125
Virginia First Financial Corp. 28,000 343,000
20,579,663
SECURITIES INDUSTRY - 0.4%
Edwards (A.G.), Inc. 35,000 630,000
John Nuveen Co. Class A 40,000 915,000
1,545,000
TOTAL FINANCE 39,955,938
HEALTH - 6.2%
DRUGS & PHARMACEUTICALS - 0.1%
Sepracor, Inc. (a) 70,000 288,750
MEDICAL EQUIPMENT & SUPPLIES - 6.1%
Baxter International, Inc. 120,000 3,390,000
Corvita Corp. (a) 75,000 337,500
I-Stat Corporation (a)(e) 1,093,100 20,768,900
McKesson Corp. 30,000 978,750
25,475,150
TOTAL HEALTH 25,763,900
COMMON STOCKS - CONTINUED
SHARES
HOLDING COMPANIES - 0.2%
Lam Soon (Hong Kong) Ltd. 2,200,000 $ 788,964
INDUSTRIAL MACHINERY & EQUIPMENT - 1.0%
ELECTRICAL EQUIPMENT - 0.5%
ACTV, Inc. (a)(e) 440,000 1,595,000
Mei Ah International 5,000,000 387,700
1,982,700
INDUSTRIAL MACHINERY & EQUIPMENT - 0.5%
Cooper Industries, Inc. 55,000 1,876,875
Sweetwater, Inc. (a) 31,000 193,750
2,070,625
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 4,053,325
MEDIA & LEISURE - 5.2%
BROADCASTING - 5.2%
Viacom, Inc.:
Class B (non-vtg.) (a) 370,000 15,031,250
Class B (warrants) (a) 300,000 1,612,500
Class C (warrants) (a) 1,600,000 5,300,000
21,943,750
NONDURABLES - 6.3%
BEVERAGES - 1.5%
PepsiCo, Inc. 170,000 6,162,500
FOODS - 3.8%
CPC International, Inc. 90,000 4,792,500
Hershey Foods Corp. 115,000 5,563,125
Lam Soon Food Industries Ltd. 3,400,000 641,512
Tootsie Roll Industries, Inc. 69,400 4,268,100
Yaohan Food Process & Trading Co. (a) 4,600,000 725,236
15,990,473
HOUSEHOLD PRODUCTS - 0.8%
Avon Products, Inc. 55,000 3,286,250
COMMON STOCKS - CONTINUED
SHARES
NONDURABLES - CONTINUED
TOBACCO - 0.2%
RJR Nabisco Holdings Corp. (a) 130,000 $ 715,000
TOTAL NONDURABLES 26,154,223
RETAIL & WHOLESALE - 0.1%
GENERAL MERCHANDISE STORES - 0.0%
Federated Department Stores, Inc. (a) 100 1,868
Federated Department Stores, Inc.:
Class C (warrants) (a) 6,306 32,318
Class D (warrants) (a) 6,306 35,471
69,657
GROCERY STORES - 0.1%
Four Seas Mercantile Holdings Ltd. 1,786,000 473,165
RETAIL & WHOLESALE, MISCELLANEOUS - 0.0%
Right Start, Inc. (a) 55,000 116,875
TOTAL RETAIL & WHOLESALE 659,697
SERVICES - 2.9%
PRINTING - 0.2%
Starlite Holdings Ltd. 7,000,000 687,540
SERVICES - 2.7%
Kinder-Care Learning Centers, Inc. (a) 450,000 5,512,500
Regis Corporation (a) 385,000 5,775,000
11,287,500
TOTAL SERVICES 11,975,040
TECHNOLOGY - 0.6%
PHOTOGRAPHIC EQUIPMENT - 0.6%
Showscan Corp. (a)(e) 360,000 2,340,000
COMMON STOCKS - CONTINUED
SHARES
TRANSPORTATION - 1.6%
RAILROADS - 1.6%
CSX Corp. 35,000 $ 2,436,875
Chicago & North Western Holdings Corp. (a) 20,000 385,000
Union Pacific Corp. 85,000 3,878,125
6,700,000
UTILITIES - 25.0%
TELEPHONE SERVICES - 25.0%
Ameritech Corp. 510,000 20,591,250
Bell Atlantic Corp. 390,900 19,447,275
BellSouth Corp. 400,000 21,650,000
NYNEX Corp. 500,000 18,375,000
Pacific Telesis Group 115,000 3,277,500
Southern New England Telecommunications Corp. 110,000 3,533,750
Southwestern Bell Corp. 435,000 17,563,125
104,437,900
TOTAL COMMON STOCKS
(Cost $278,194,432) 276,759,906
NONCONVERTIBLE BONDS - 1.8%
MOODY'S RATINGS PRINCIPAL
(UNAUDITED) AMOUNT (C)
DURABLES - 0.3%
HOME FURNISHINGS - 0.3%
Interco, Inc. 10%, 6/1/01 - $ 1,368,000 1,374,840
RETAIL & WHOLESALE - 0.1%
GENERAL MERCHANDISE STORES - 0.1%
Federated Department Stores, Inc.:
Series A 10.97%, 6/30/99 - 89,571 89,571
Series B 11.29%, 6/30/02 - 133,859 134,863
224,434
SERVICES - 0.5%
EDUCATIONAL SERVICES - 0.5%
Kindercare Learning Centers, Inc.
10 3/8%, 6/1/01 Ba3 $ 2,000,000 $ 2,010,000
NONCONVERTIBLE BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (B) (NOTE 1)
SERVICES - CONTINUED
SERVICES - 0.0%
JWP, Inc. 12%, 4/1/96 (b) - 4,000,000 140,000
TOTAL SERVICES 2,150,000
UTILITIES - 0.9%
GAS - 0.9%
Columbia Gas Systems, Inc. (b):
9.30%, 9/1/01 - 100,000 118,000
10 1/4%, 8/1/11 Caa 1,000,000 1,250,000
9.24%, 12/30/14 - 1,000,000 1,177,500
9.30%, 12/18/19 Caa 1,000,000 1,175,000
3,720,500
TOTAL NONCONVERTIBLE BONDS
(Cost $7,017,792) 7,469,774
U.S. TREASURY OBLIGATIONS - 17.4%
7 1/2%, 10/31/99 Aaa 5,000,000 4,928,100
9 1/8%, 5/15/18 Aaa 20,000,000 22,340,626
Stripped Interest Payment 0%:
2/15/00 Aaa 10,000,000 6,751,900
2/15/12 Aaa 150,000,000 38,724,000
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $74,345,375) 72,744,626
FOREIGN GOVERNMENT OBLIGATIONS (D) - 0.8%
French Government (f):
OAT Strip, 4/25/23 Aaa FRF 100,000 1,657,790
Principal Strip, 4/25/23 Aaa FRF 90,000 1,492,011
TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost $4,561,751) 3,149,801
COMMERCIAL PAPER - 0.5%
Columbia Gas Systems 6.05%, 4/30/96 (b)
(Cost $2,050,000) - $ 2,000,000 $ 2,060,000
REPURCHASE AGREEMENTS - 13.4%
MOODY'S RATINGS MATURITY VALUE
(UNAUDITED) AMOUNT (NOTE 1)
Investments in repurchase agreements,
(U.S.Treasury obligations), in a
joint trading account at 5.77%,
dated 12/30/94 due 1/3/95 $ 56,313,080 $ 56,277,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $422,446,350) $ 418,461,107
CURRENCY ABBREVIATIONS
FRF - French franc
LEGEND
(v) Non-income producing
(w) Non-income producing - issuer filed for protection under the Federal
Bankruptcy Code or is in default of interest payment.
(x) Principal amount is stated in United States dollars unless otherwise
noted.
(y) 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.
(z) Affiliated company (see Note 7 of Notes to Financial Statements).
(aa) 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 18.1% AAA, AA, A 18.2%
Baa 0.0% BBB 0.0%
Ba 0.5% BB 0.5%
B 0.0% B 0.0%
Caa 0.6% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.6%
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 1.2%.
INCOME TAX INFORMATION
At December 31, 1994, the aggregate cost of investment securities for
income tax purposes was $423,230,532. Net unrealized depreciation
aggregated $4,769,425 of which $15,388,036 related to appreciated
investment securities and $20,157,461 related to depreciated investment
securities.
At December 31, 1994, the fund had a capital loss carryforward of
approximately $1,141,000 all of which will expire on December 31, 2002.
The fund has elected to defer to its fiscal year ending December 31, 1995
$4,261,000 of losses recognized during the period November 1, 1994 to
December 31, 1994.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS DECEMBER 31, 1994

Investment in securities, at value (including repurchase $ 418,461,107
agreements of $56,277,000) (cost $422,446,350) -
See accompanying schedule

Receivable for investments sold 5,892,229

Receivable for fund shares sold 1,660,434

Dividends, interest and other receivables 1,357,455

Receivable from investment adviser for expense reductions 30,000

TOTAL ASSETS 427,401,225

LIABILITIES

Payable to custodian bank $ 46,487

Payable for investments purchased 14,000,181

Payable for fund shares redeemed 2,283,764

Accrued management fee 267,414

Distribution fees payable 212,252

Other payables and accrued expenses 227,745

TOTAL LIABILITIES 17,037,843

NET ASSETS $ 410,363,382

Net Assets consist of:

Paid in capital $ 420,474,189

Accumulated undistributed net realized gain (loss) on (6,114,968)
investments and foreign currency transactions

Net unrealized appreciation (depreciation) on (3,995,839)
investments and assets and liabilities in foreign
currencies

NET ASSETS $ 410,363,382

CALCULATION OF MAXIMUM OFFERING PRICE $18.70
CLASS A:
NET ASSET VALUE and redemption price per share
($375,690,536 (divided by) 20,087,763 shares)

Maximum offering price per share (100/95.25 of $18.70) $19.63

CLASS B: $18.57
NET ASSET VALUE and offering price per share
($17,090,001 (divided by) 920,278 shares) A

INITIAL CLASS: $18.86
NET ASSET VALUE and redemption price per share
($17,582,845 (divided by) 932,508 shares)

Maximum offering price per share (100/95.25 of $18.86) $19.80

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
Dividends $ 2,125,140 $ 7,634,312

Interest 1,700,478 5,728,849

TOTAL INCOME 3,825,618 13,363,161

EXPENSES

Management fee 645,013 2,222,910
Basic fee

Performance adjustment 37,843 359,674

Transfer agent fees 364,602 1,103,957
Class A

Class B 21,148 7,993

Initial Class 9,567 37,897

Distribution fees 611,292 2,172,076
Class A

Class B 31,856 8,429

Accounting fees and expenses 61,356 215,648

Non-interested trustees' compensation 4,513 2,084

Custodian fees and expenses 10,508 46,885

Registration fees 15,817 141,321
Class A

Class B 4,058 854

Initial Class 6,535 23,159

Audit 44,112 51,746

Miscellaneous 269 89,689

Total expenses before reductions 1,868,489 6,484,322

Expense reductions (110,791) (24,630)

TOTAL EXPENSES AFTER REDUCTIONS 1,757,698 6,459,692

NET INVESTMENT INCOME 2,067,920 6,903,469

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

Investment securities (including realized loss of $1,513 (5,790,745) 8,313,205
and $0 from sales of investments in
affiliated issues, respectively)

Foreign currency transactions 967 (33,012)

Change in net unrealized appreciation (depreciation)
on:

Investment securities (9,641,151) (23,315,297)

Assets and liabilities in foreign currencies (235) (10,361)

NET GAIN (LOSS) (15,431,164) (15,045,465)

NET DECREASE IN NET ASSETS RESULTING FROM $ (13,363,244) $ (8,141,996)
OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C> <C>
THREE MONTHS YEAR ENDED YEAR ENDED
ENDED SEPTEMBER 30, SEPTEMBER 30,
DECEMBER 31, 1994 1993
1994

INCREASE (DECREASE) IN NET ASSETS

Operations $ 2,067,920 $ 6,903,469 $ 5,033,318
Net investment income

Net realized gain (loss) (5,789,778) 8,280,193 25,283,326

Change in net unrealized appreciation (9,641,386) (23,325,658) 25,715,063
(depreciation)

NET INCREASE (DECREASE) IN NET ASSETS (13,363,244) (8,141,996) 56,031,707
RESULTING FROM OPERATIONS

Distributions to shareholders from:
Net investment income

Class A (6,826,359) (5,752,632) (5,678,505)

Class B (382,214) - -

Initial Class (464,141) (458,027) (627,961)

Net realized gain

Class A (5,071,018) (22,876,692) (12,054,370)

Class B (211,573) - -

Initial Class (241,353) (1,535,740) (1,085,476)

TOTAL DISTRIBUTIONS (13,196,658) (30,623,091) (19,446,312)

Share transactions - net increase 23,899,770 161,198,427 41,361,732
(decrease)

TOTAL INCREASE (DECREASE) IN NET (2,660,132) 122,433,340 77,947,127
ASSETS

NET ASSETS

Beginning of period 413,023,514 290,590,174 212,643,047

End of period (including undistributed $ 410,363,382 $ 413,023,514 $ 290,590,174
net investment income of $0,
$5,875,182, and $8,916,803,
respectively)

</TABLE>

FINANCIAL HIGHLIGHTS INITIAL CLASS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
THREE MONTHS YEARS ENDED SEPTEMBER 30,
ENDED
DECEMBER 31,

1994 1994 1993 1992 D 1991 1990

SELECTED PER-SHARE DATA

Net asset value, $ 20.23 $ 22.72 $ 19.72 $ 21.55 $ 17.37 $ 19.77
beginning of period

Income from Investment
Operations

Net investment .13 E .54 E .45 .73 .77 .80
income

Net realized and (.74) (.81) 4.46 .58 4.26 (2.49)
unrealized gain (loss)
on investments

Total from investment (.61) (.27) 4.91 1.31 5.03 (1.69)
operations

Less Distributions

From net investment (.50) (.51) (.70) (.72) (.85) (.71)
income

From net realized (.26) (1.71) (1.21) (2.42) - -
gain

Total distributions (.76) (2.22) (1.91) (3.14) (.85) (.71)

Net asset value, end $ 18.86 $ 20.23 $ 22.72 $ 19.72 $ 21.55 $ 17.37
of period

TOTAL RETURN A, B (3.02)% (1.51) 26.98% 7.89 30.01 (8.96)
% % % %

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period $ 17,583 $ 18,850 $ 20,707 $ 17,933 $ 19,193 $ 15,988
(000 omitted)

Ratio of expenses to 1.11% F 1.14% .89% .87 1.00 1.03%
average net assets C % %

Ratio of expenses to 1.14% F 1.15% 1.05% .87 1.00 1.03%
average net assets % %
before
expense reductions

Ratio of net investment 2.65% F 2.60% 2.74% 3.78 4.12 4.21%
income to average % %
net assets

Portfolio turnover 228% F 159% 183% 211 223 114%
% %

</TABLE>

A 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.)
B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C INCLUDES REIMBURSEMENTS OF $.03 PER SHARE FROM FIDELITY MANAGEMENT &
RESEARCH COMPANY FOR ADJUSTMENTS TO PRIOR PERIOD'S FEES.
D AS OF OCTOBER 1, 1991, THE FUND DISCONTINUED THE USE OF EQUALIZATION
ACCOUNTING.
E NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
F ANNUALIZED
NOTES TO FINANCIAL STATEMENTS
For the period ended December 31, 1994

To the Trustees of Fidelity Advisor Series VIII and the Shareholders of
Fidelity Advisor Strategic Opportunities Fund:
We have audited the accompanying statement of assets and liabilities of
Fidelity Advisor Series VIII: Fidelity Advisor Strategic Opportunities
Fund, including the schedule of portfolio investments, as of December 31,
1994, and the related statements of operations for the three month period
then ended and the year ended September 30, 1994, the statements of
changes in net assets for the three month period ended December 31, 1994
and for each of the two years in the period ended September 30, 1994, and
the financial highlights for the three month period ended December 31,
1994 and for each of the five years in the period ended September 30, 1994
(Class A and Initial Class) and for the three month period ending December
31, 1994 and the period June 30, 1994 (commencement of sale of Class B
shares) to September 30, 1994 . These financial statements and financial
highlights are the responsibility of the fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1994 by correspondence with the
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Advisor Series VIII: Fidelity Advisor Strategic Opportunities
Fund as of December 31, 1994, the results of its operations for the three
month period then ended and the year ended September 30, 1994, the changes
in its net assets for the three month period ended December 31, 1994 and
each of the two years in the period ended September 30, 1994, and the
financial highlights for the three month period ended December 31, 1994
and for each of the five years in the period ended September 30, 1994
(Class A and Initial Class) and for the three month period ending December
31, 1994 and the period June 30, 1994 (commencement of sale of Class B
shares) to September 30, 1994 , in conformity with generally accepted
accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
February 9, 1995
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Daniel R. Frank, Vice President
William J. Hayes, Vice President
Arthur S. Loring, Secretary
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Robert H. Morrison, Manager,
Security Transactions
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
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Company
Boston, MA
CUSTODIAN
Brown Brothers Harriman & Co.
Boston, MA
EQUITY FUNDS
Fidelity Advisor Overseas Fund
Fidelity Advisor Equity Portfolio Growth
Fidelity Advisor Global Resources Fund
Fidelity Advisor Growth
Opportunities Fund
Fidelity Advisor Strategic
Opportunities Fund
GROWTH AND INCOME FUNDS
Fidelity Advisor Equity Portfolio Income
Fidelity Advisor Income & Growth Fund
INCOME FUNDS
Fidelity Advisor Emerging Markets Income Fund
Fidelity Advisor High Yield Fund
Fidelity Advisor Strategic Income Fund
Fidelity Advisor Government Investment Fund
Fidelity Advisor Limited Term Bond Fund
Fidelity Advisor Short Fixed-Income Fund
TAX-EXEMPT FUNDS
Fidelity Advisor High Income
Municipal Fund
Fidelity Advisor Limited Term Tax-Exempt Fund
Fidelity Advisor Short-Intermediate Tax-Exempt Fund
MONEY MARKET FUNDS
Daily Money Fund: Money Market Portfolio
Daily Money Fund: U.S. Treasury Portfolio
Daily Tax-Exempt Money Fund
(REGISTERED TRADEMARK)
(registered trademark)