FIDELITY ADVISOR SERIES VIII, N-30D, 1998-02-25

FIDELITY ADVISOR SERIES VIII
N-30D, 1998-02-25

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(2_FIDELITY_LOGOS)FIDELITY ADVISOR

(REGISTERED TRADEMARK)
EMERGING MARKETS INCOME
FUND - CLASS A, CLASS T, CLASS B
AND CLASS C
ANNUAL REPORT
DECEMBER 31, 1997
CONTENTS

PRESIDENT'S MESSAGE 3 NED JOHNSON ON INVESTING STRATEGIES.

PERFORMANCE 4 HOW THE FUND HAS DONE OVER TIME.

FUND TALK 19 THE MANAGER'S REVIEW OF FUND
PERFORMANCE, STRATEGY AND OUTLOOK.

INVESTMENT CHANGES 22 A SUMMARY OF MAJOR SHIFTS IN THE FUND'S
INVESTMENTS OVER THE PAST SIX MONTHS.

INVESTMENTS 23 A COMPLETE LIST OF THE FUND'S INVESTMENTS
WITH THEIR MARKET VALUES.

FINANCIAL STATEMENTS 30 STATEMENTS OF ASSETS AND LIABILITIES,
OPERATIONS, AND CHANGES IN NET ASSETS,
AS WELL AS FINANCIAL HIGHLIGHTS.

NOTES 39 NOTES TO FINANCIAL STATEMENTS.

REPORT OF INDEPENDENT 49 THE AUDITORS' OPINION.
ACCOUNTANTS

DISTRIBUTIONS 50

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE
SUBMITTED FOR THE GENERAL INFORMATION
OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS
IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED
BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC,
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT
INVESTED.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY 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

(PHOTO_OF_EDWARD_C_JOHNSON_3D)DEAR SHAREHOLDER:
Although financial turmoil in Pacific Basin countries was a catalyst
for significant volatility in U.S. markets throughout the fourth
quarter, the Standard & Poor's 500 Index rose more than 33% in 1997,
about three times its historical annual average. Meanwhile, bond
markets - primarily influenced by a relatively steady flow of positive
news on the inflation front - continued to post solid returns as the
year drew to a close.
While it's impossible to predict the future direction of the markets
with any degree of certainty, there are certain basic principles that
can help investors plan for their future needs.
The longer your investment time frame, the less likely it is that you
will be affected by short-term market volatility. A 10-year investment
horizon appropriate for saving for a college education, for example,
enables you to weather market cycles in a long-term fund, which may
have a higher risk potential, but also has a higher potential rate of
return.
An intermediate-length fund could make sense if your investment
horizon is two to four years, while 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. These
funds seek income and a stable share price by investing in
high-quality, short-term investments. Of course, it's important to
remember that there is no assurance that a money market fund will
achieve its goal of maintaining a stable net asset value of $1.00 per
share, and that these types of funds are neither insured nor
guaranteed by any agency of the U.S. government.
Finally, no matter what your time horizon or portfolio diversity, it
makes good sense to follow a regular investment plan, investing a
certain amount of money in a fund at the same time each month or
quarter and periodically reviewing your overall portfolio. By doing
so, you won't get caught up in the excitement of a rapidly rising
market, nor will you buy all your shares at market highs. While this
strategy - known as dollar cost averaging - won't assure a profit or
protect you from a loss in a declining market, it should help you
lower the average cost of your purchases.
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

FIDELITY ADV EMERGING MARKETS INCOME - CL A 16.52% 79.38%

FIDELITY ADV EMERGING MARKETS INCOME - CL A 10.98% 70.86%
(INCL. MAX. 4.75% SALES CHARGE)

JP EMBI PLUS 13.02% 80.83%

EMERGING MARKETS DEBT FUNDS AVERAGE 13.80% N/A

CUMULATIVE TOTAL RETURNS show Class A's performance in percentage
terms over a set period - in this case, one year or since the fund
started on March 10, 1994. For example, if you had invested $1,000 in
a fund that had a 5% return over the past year, the value of your
investment would be $1,050. You can compare Class A's returns to those
of the J.P. Morgan Emerging Markets Bond Index Plus - a market
capitalization weighted total return index of U.S. dollar- and other
external currency-denominated Brady bonds, loans, Eurobonds, and local
market debt instruments traded in emerging markets. To measure how
Class A's performance stacked up against its peers, you can compare it
to the emerging markets debt funds average, which reflects the
performance of mutual funds with similar objectives tracked by Lipper
Analytical Services, Inc. The past one year average represents a peer
group of 27 mutual funds. These benchmarks reflect reinvestment of
dividends and capital gains, if any, and exclude the effect of sales
charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1997 PAST 1 LIFE OF
YEAR FUND

FIDELITY ADV EMERGING MARKETS INCOME - CL A 16.52% 16.56%

FIDELITY ADV EMERGING MARKETS INCOME - CL A 10.98% 15.08%
(INCL. MAX. 4.75% SALES CHARGE)

JP EMBI PLUS 13.02% 16.80%

EMERGING MARKETS DEBT FUNDS AVERAGE 13.80% N/A

AVERAGE ANNUAL TOTAL RETURNS take Class A's cumulative return and show
you what would have happened if Class A shares had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
IMAHDR PRASUN SHR__CHT 19971231 19980130 122130 S00000000000001
FA Emerg Mkt Inc -CL A JP EMBI Plus
00255 JP004
1994/03/10 9525.00 10000.00
1994/03/31 9128.32 8807.82
1994/04/30 9248.44 8643.25
1994/05/31 9844.60 9282.15
1994/06/30 9368.11 8810.67
1994/07/31 9578.30 8971.50
1994/08/31 10732.31 9714.11
1994/09/30 11038.76 10014.32
1994/10/31 10754.24 9697.82
1994/11/30 10530.74 9687.51
1994/12/31 9760.21 9059.99
1995/01/31 8639.66 8623.61
1995/02/28 8022.18 8222.51
1995/03/31 7787.58 8056.78
1995/04/30 8456.16 8918.88
1995/05/31 8960.63 9695.07
1995/06/30 9011.12 9909.06
1995/07/31 9026.46 9869.98
1995/08/31 9219.78 10140.13
1995/09/30 9586.60 10536.55
1995/10/31 9514.14 10422.17
1995/11/30 9831.92 10724.86
1995/12/31 10442.10 11485.35
1996/01/31 11211.15 12358.18
1996/02/29 10586.42 11676.46
1996/03/31 10686.18 11942.44
1996/04/30 11237.32 12593.99
1996/05/31 11532.65 12811.92
1996/06/30 11823.71 13262.30
1996/07/31 11956.95 13539.46
1996/08/31 12386.31 14036.78
1996/09/30 13388.33 14942.02
1996/10/31 13770.24 15043.72
1996/11/30 14535.78 15810.38
1996/12/31 14663.83 16000.37
1997/01/31 15280.06 16442.93
1997/02/28 15536.21 16729.03
1997/03/31 14899.95 16123.30
1997/04/30 15411.66 16602.74
1997/05/31 16070.48 17247.58
1997/06/30 16565.95 17644.32
1997/07/31 17279.12 18376.34
1997/08/31 17182.38 18301.91
1997/09/30 17731.83 18861.14
1997/10/31 15976.27 16688.46
1997/11/30 16553.99 17480.82
1997/12/31 17085.71 18083.31
IMATRL PRASUN SHR__CHT 19971231 19980130 122131 R00000000000049
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Advisor Emerging Markets Income Fund - Class A on
March 10, 1994, when the fund started, and the current 4.75% sales
charge was paid. As the chart shows, by December 31, 1997, the value
of the investment would have grown to $17,086 - a 70.86% increase on
the initial investment. For comparison, look at how the J.P. Morgan
Emerging Markets Bond Index Plus did over the same period. With
dividends and capital gains, if any, reinvested, the same $10,000
investment would have grown to $18,083 - an 80.83% increase.
UNDERSTANDING
PERFORMANCE
Many markets around the globe
offer the potential for significant
growth over time; however,
investing in foreign markets means
assuming greater risks than investing
in the United States. Factors like
changes in a country's financial
markets, its local political and
economic climate, and the
fluctuating value of its currency
create these risks. For these reasons
an international fund's performance
may be more volatile than a fund
that invests exclusively in the United
States. Past performance is no
guarantee of future results and
you may have a gain or loss when
you sell your shares.
(checkmark)

TOTAL RETURN COMPONENTS
YEARS ENDED DECEMBER 31, MARCH 10, 1994
(COMMENCEMENT
OF OPERATIONS) TO
DECEMBER 31,

1997 1996 1995 1994

DIVIDEND RETURN 8.37% 9.38% 9.51% 4.80%

CAPITAL APPRECIATION RETURN 8.15% 31.05% -2.52% -2.33%

TOTAL RETURN 16.52% 40.43% 6.99% 2.47%

TOTAL RETURN COMPONENTS include both dividend returns and capital
appreciation returns. 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 capital gains paid by the class are reinvested, if any,
and exclude the effect of sales charges.
DIVIDENDS AND YIELD
PERIODS ENDED DECEMBER 31, 1997 PAST 1 PAST 6 PAST 1
MONTH MONTHS YEAR

DIVIDENDS PER SHARE 21.30(CENTS) 61.07(CENTS) 98.38(CENTS)

ANNUALIZED DIVIDEND RATE 20.73% 9.50% 7.93%

30-DAY ANNUALIZED YIELD N/A - -

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 $12.10 over the past one month, $12.75 over the past six
months, and $12.40 over the past one year, 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. Yield information will be reported once
Class A has a longer, more stable operating history.
ADVISOR EMERGING MARKETS INCOME FUND - CLASS T
PERFORMANCE: THE BOTTOM LINE

FIDELITY ADV EMERGING MARKETS INCOME - CL T 16.47% 79.29%

FIDELITY ADV EMERGING MARKETS INCOME - CL T 12.40% 73.02%
(INCL. MAX. 3.50% SALES CHARGE)

JP EMBI PLUS 13.02% 80.83%

EMERGING MARKETS DEBT FUNDS AVERAGE 13.80% N/A

CUMULATIVE TOTAL RETURNS show Class T's performance in percentage
terms over a set period - in this case, one year or since the fund
started on March 10, 1994. For example, if you had invested $1,000 in
a fund that had a 5% return over the past year, the value of your
investment would be $1,050. You can compare Class T's returns to those
of the J.P. Morgan Emerging Markets Bond Index Plus - a market
capitalization weighted total return index of U.S. dollar- and other
external currency-denominated Brady bonds, loans, Eurobonds, and local
market debt instruments traded in emerging markets. To measure how
Class T's performance stacked up against its peers, you can compare it
to the emerging markets debt funds average, which reflects the
performance of mutual funds with similar objectives tracked by Lipper
Analytical Services, Inc. The past one year average represents a peer
group of 27 mutual funds. These benchmarks reflect reinvestment of
dividends and capital gains, if any, and exclude the effect of sales
charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1997 PAST 1 LIFE OF
YEAR FUND

FIDELITY ADV EMERGING MARKETS INCOME - CL T 16.47% 16.54%

FIDELITY ADV EMERGING MARKETS INCOME - CL T 12.40% 15.46%
(INCL. MAX. 3.50% SALES CHARGE)

JP EMBI PLUS 13.02% 16.80%

EMERGING MARKETS DEBT FUNDS AVERAGE 13.80% N/A

AVERAGE ANNUAL TOTAL RETURNS take Class T's cumulative return and show
you what would have happened if Class T had performed at a constant
rate each year.
$10,000 OVER LIFE OF FUND
IMAHDR PRASUN SHR__CHT 19971231 19980130 120734 S00000000000001
FA Emerg Mkt Inc -CL T JP EMBI Plus
00635 JP004
1994/03/10 9650.00 10000.00
1994/03/31 9248.12 8807.82
1994/04/30 9369.81 8643.25
1994/05/31 9973.79 9282.15
1994/06/30 9491.05 8810.67
1994/07/31 9704.00 8971.50
1994/08/31 10873.16 9714.11
1994/09/30 11183.62 10014.32
1994/10/31 10895.38 9697.82
1994/11/30 10668.94 9687.51
1994/12/31 9888.29 9059.99
1995/01/31 8753.04 8623.61
1995/02/28 8127.46 8222.51
1995/03/31 7889.78 8056.78
1995/04/30 8567.13 8918.88
1995/05/31 9078.23 9695.07
1995/06/30 9129.37 9909.06
1995/07/31 9144.92 9869.98
1995/08/31 9340.78 10140.13
1995/09/30 9712.41 10536.55
1995/10/31 9639.00 10422.17
1995/11/30 9960.95 10724.86
1995/12/31 10579.14 11485.35
1996/01/31 11358.28 12358.18
1996/02/29 10725.35 11676.46
1996/03/31 10826.42 11942.44
1996/04/30 11384.79 12593.99
1996/05/31 11684.00 12811.92
1996/06/30 11978.87 13262.30
1996/07/31 12113.86 13539.46
1996/08/31 12548.86 14036.78
1996/09/30 13572.33 14942.02
1996/10/31 13947.71 15043.72
1996/11/30 14723.78 15810.38
1996/12/31 14854.44 16000.37
1997/01/31 15480.72 16442.93
1997/02/28 15740.89 16729.03
1997/03/31 15095.79 16123.30
1997/04/30 15612.28 16602.74
1997/05/31 16280.02 17247.58
1997/06/30 16795.95 17644.32
1997/07/31 17517.42 18376.34
1997/08/31 17419.65 18301.91
1997/09/30 17975.36 18861.14
1997/10/31 16195.49 16688.46
1997/11/30 16765.19 17480.82
1997/12/31 17301.56 18083.31
IMATRL PRASUN SHR__CHT 19971231 19980130 120735 R00000000000049
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Advisor Emerging Markets Income Fund - Class T on
March 10, 1994, when the fund started, and the current 3.50% sales
charge was paid. As the chart shows, by December 31, 1997, the value
of your investment would have grown to $17,302 - a 73.02% increase on
the initial investment. For comparison, look at how the J.P. Morgan
Emerging Markets Bond Index Plus did over the same period. With
dividends and capital gains, if any, reinvested, the same $10,000
investment would have grown to $18,083 - an 80.83% increase.
UNDERSTANDING
PERFORMANCE
Many markets around the globe
offer the potential for significant
growth over time; however,
investing in foreign markets means
assuming greater risks than investing
in the United States. Factors like
changes in a country's financial
markets, its local political and
economic climate, and the
fluctuating value of its currency
create these risks. For these reasons
an international fund's performance
may be more volatile than a fund
that invests exclusively in the United
States. Past performance is no
guarantee of future results and you
may have a gain or loss when you
sell your shares.
(checkmark)

TOTAL RETURN COMPONENTS

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

1997 1996 1995 1994

DIVIDEND RETURN 8.32% 9.46% 9.51% 4.80%

CAPITAL APPRECIATION RETURN 8.15% 30.95% -2.52% -2.33%

TOTAL RETURN 16.47% 40.41% 6.99% 2.47%

</TABLE>

DIVIDENDS PER SHARE 21.13(CENTS) 60.51(CENTS) 97.81(CENTS)

ANNUALIZED DIVIDEND RATE 20.56% 9.41% 7.89%

30-DAY ANNUALIZED YIELD 7.50% - -

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 $12.10 over the past one month, $12.75 over the past six
months and $12.40 over the past one year, 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 T's maximum
3.50% sales charge.
ADVISOR EMERGING MARKETS INCOME FUND - CLASS B
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate 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.
Total return reflects the change in the value of an investment,
assuming reinvestment of the class' dividend income and capital gains
(the profits earned upon the sale of securities that have grown in
value). You can also look at income, as reflected in its yield, to
measure performance.
The initial offering of Class B shares took place on June 30, 1994.
Class B shares bear a 0.90% 12b-1 fee (1.00% prior to January 1,
1996). Returns prior to June 30, 1994 are those of Class T, the
original class of the fund, and reflect Class T shares' 0.25% 12b-1
fee. Had Class B's 12b-1 fee been reflected, returns prior to June 30,
1994 would have been lower. Effective January 2, 1997, Class B's
contingent deferred sales charge is based on a declining scale that
ranges from 5% to 1% on Class B shares redeemed within six years of
purchase. This scale is revised from the previous scale of 4% to 1% on
shares redeemed within five years of purchase. Class B's contingent
deferred sales charge included in the past one year and life of fund
total return figures are 5% and 3%, respectively. If Fidelity had not
reimbursed certain class expenses, the life of fund total returns and
dividends would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1997 PAST 1 LIFE OF
YEAR FUND

FIDELITY ADV EMERGING MARKETS INCOME - CL B 15.70% 75.17%

FIDELITY ADV EMERGING MARKETS INCOME - CL B 10.95% 72.17%
(INCL. CONTINGENT DEFERRED SALES CHARGE)

JP EMBI PLUS 13.02% 80.83%

EMERGING MARKETS DEBT FUNDS AVERAGE 13.80% N/A

CUMULATIVE TOTAL RETURNS show Class B's performance in percentage
terms over a set period - in this case, one year or since the fund
started on March 10, 1994. For example, if you had invested $1,000 in
a fund that had a 5% return over the past year, the value of your
investment would be $1,050. You can compare Class B's returns to those
of the J.P. Morgan Emerging Markets Bond Index Plus - a market
capitalization weighted total return index of U.S. dollar- and other
external currency-denominated Brady bonds, loans, Eurobonds, and local
market debt instruments traded in emerging markets. To measure how
Class B's performance stacked up against its peers, you can compare it
to the emerging markets debt funds average, which reflects the
performance of mutual funds tracked by Lipper Analytical Services,
Inc. The past one year average represents a peer group of 27 mutual
funds. These benchmarks reflect reinvestment of dividends and capital
gains, if any, and exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1997 PAST 1 LIFE OF
YEAR FUND

FIDELITY ADV EMERGING MARKETS INCOME - CL B 15.70% 15.83%

FIDELITY ADV EMERGING MARKETS INCOME - CL B 10.95% 15.31%
(INCL. CONTINGENT DEFERRED SALES CHARGE)

JP EMBI PLUS 13.02% 16.80%

EMERGING MARKETS DEBT FUNDS AVERAGE 13.80% N/A

AVERAGE ANNUAL TOTAL RETURNS take Class B's cumulative return and show
you what would have happened if Class B had performed at a constant
rate each year.
$10,000 OVER LIFE OF FUND
IMAHDR PRASUN SHR__CHT 19971231 19980130 120810 S00000000000001
FA Emerg Mkt Inc -CL B JP EMBI Plus
00637 JP004
1994/03/10 10000.00 10000.00
1994/03/31 9583.54 8807.82
1994/04/30 9709.65 8643.25
1994/05/31 10335.54 9282.15
1994/06/30 9833.49 8810.67
1994/07/31 10040.95 8971.50
1994/08/31 11241.32 9714.11
1994/09/30 11564.08 10014.32
1994/10/31 11268.61 9697.82
1994/11/30 11017.23 9687.51
1994/12/31 10193.95 9059.99
1995/01/31 9038.73 8623.61
1995/02/28 8378.26 8222.51
1995/03/31 8128.48 8056.78
1995/04/30 8820.18 8918.88
1995/05/31 9339.33 9695.07
1995/06/30 9396.83 9909.06
1995/07/31 9406.70 9869.98
1995/08/31 9601.70 10140.13
1995/09/30 9965.41 10536.55
1995/10/31 9895.07 10422.17
1995/11/30 10218.26 10724.86
1995/12/31 10844.25 11485.35
1996/01/31 11634.97 12358.18
1996/02/29 10982.00 11676.46
1996/03/31 11079.09 11942.44
1996/04/30 11643.23 12593.99
1996/05/31 11954.38 12811.92
1996/06/30 12236.78 13262.30
1996/07/31 12367.99 13539.46
1996/08/31 12816.56 14036.78
1996/09/30 13838.82 14942.02
1996/10/31 14224.26 15043.72
1996/11/30 15017.11 15810.38
1996/12/31 15140.08 16000.37
1997/01/31 15767.56 16442.93
1997/02/28 16021.82 16729.03
1997/03/31 15358.01 16123.30
1997/04/30 15874.05 16602.74
1997/05/31 16540.59 17247.58
1997/06/30 17052.77 17644.32
1997/07/31 17772.51 18376.34
1997/08/31 17663.27 18301.91
1997/09/30 18214.91 18861.14
1997/10/31 16393.62 16688.46
1997/11/30 16988.86 17480.82
1997/12/31 17217.40 18083.31
IMATRL PRASUN SHR__CHT 19971231 19980130 120813 R00000000000049
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Advisor Emerging Markets Income Fund - Class B on
March 10, 1994, when the fund started. As the chart shows, by December
31, 1997, the value of the investment including the effect of the
applicable contingent deferred sales charge, would have been $17,217 -
a 72.17% increase on the initial investment. For comparison, look at
how the J.P. Morgan Emerging Markets Bond Index Plus did over the same
period. With dividends and capital gains, if any, reinvested, the same
$10,000 investment would have grown to $18,083 - an 80.83% increase.
UNDERSTANDING
PERFORMANCE
MANY MARKETS AROUND THE GLOBE
OFFER THE POTENTIAL FOR SIGNIFICANT
GROWTH OVER TIME; HOWEVER,
INVESTING IN FOREIGN MARKETS MEANS
ASSUMING GREATER RISKS THAN
INVESTING IN THE UNITED STATES.
FACTORS LIKE CHANGES IN A COUNTRY'S
FINANCIAL MARKETS, ITS LOCAL POLITICAL
AND ECONOMIC CLIMATE, AND THE
FLUCTUATING VALUE OF ITS CURRENCY
CREATE THESE RISKS. FOR THESE
REASONS AN INTERNATIONAL FUND'S
PERFORMANCE MAY BE MORE VOLATILE
THAN A FUND THAT INVESTS EXCLUSIVELY
IN THE UNITED STATES. PAST
PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS AND YOU MAY HAVE A
GAIN OR LOSS WHEN YOU SELL YOUR
SHARES.
(CHECKMARK)
TOTAL RETURN COMPONENTS
YEARS ENDED DECEMBER 31, MARCH 10, 1994
(COMMENCEMENT
OF OPERATIONS) TO
DECEMBER 31,

1997 1996 1995 1994

DIVIDEND RETURN 7.57% 8.54% 8.69% 4.30%

CAPITAL APPRECIATION RETURN 8.13% 31.07% -2.31% -2.34%

TOTAL RETURN 15.70% 39.61% 6.38% 1.96%

DIVIDENDS PER SHARE 20.31(CENTS) 56.17(CENTS) 89.24(CENTS)

ANNUALIZED DIVIDEND RATE 19.70% 8.71% 7.17%

30-DAY ANNUALIZED YIELD 6.85% - -

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 $12.14 over the past one month, $12.79 over the past six
months, and $12.44 over the past one year, 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 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.
ADVISOR EMERGING MARKETS INCOME FUND - CLASS C
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate 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.
Total return reflects the change in the value of an investment,
assuming reinvestment of the class' dividend income and capital gains
(the profits earned upon the sale of securities that have grown in
value). You can also look at income to measure performance.
The initial offering of Class C shares took place on November 3, 1997.
Class C shares bear a 1.00% 12b-1 fee that is reflected in returns
after November 3, 1997. Returns between June 30, 1994 and November 3,
1997 are those of Class B shares and reflect Class B shares' 0.90%
12b-1 fee. (1.00% prior to January 1, 1996). Returns prior to June 30,
1994 are those of Class T shares and reflect Class T shares' 0.25%
12b-1 fee. Had Class C shares' 12b-1 fee been reflected, returns from
November 3, 1997 through January 1, 1996 and prior to June 30, 1994
would have been lower. Class C's contingent deferred sales charge
included in the past one year total return figure is 1.00%. If
Fidelity had not reimbursed certain class expenses, the total returns
and dividends would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1997 PAST 1 LIFE OF
YEAR FUND

FIDELITY ADV EMERGING MARKETS INCOME - CL C 15.58% 75.03%

FIDELITY ADV EMERGING MARKETS INCOME - CL C 14.58% 75.03%
(INCL. CONTINGENT DEFERRED SALES CHARGE)

JP EMBI PLUS 13.02% 80.83%

EMERGING MARKETS DEBT FUNDS AVERAGE 13.80% N/A

CUMULATIVE TOTAL RETURNS show Class C's performance in percentage
terms over a set period - in this case, one year or since the fund
started on March 10, 1994. For example, if you had invested $1,000 in
a fund that had a 5% return over the past year, the value of your
investment would be $1,050. You can compare Class C's returns to those
of the J.P. Morgan Emerging Markets Bond Index Plus - a market
capitalization weighted total return index of U.S. dollar- and other
external currency-denominated Brady bonds, loans, Eurobonds, and local
market debt instruments traded in emerging markets. To measure how
Class C's performance stacked up against its peers, you can compare it
to the emerging markets debt funds average, which reflects the
performance of mutual funds tracked by Lipper Analytical Services,
Inc. The past one year average represents a peer group of 27 mutual
funds. These benchmarks reflect reinvestment of dividends and capital
gains, if any, and exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1997 PAST 1 LIFE OF
YEAR FUND

FIDELITY ADV EMERGING MARKETS INCOME - CL C 15.58% 15.81%

FIDELITY ADV EMERGING MARKETS INCOME - CL C 14.58% 15.81%
(INCL. CONTINGENT DEFERRED SALES CHARGE)

JP EMBI PLUS 13.02% 16.80%

EMERGING MARKETS DEBT FUNDS AVERAGE 13.80% N/A

AVERAGE ANNUAL TOTAL RETURNS take Class C's cumulative return and show
you what would have happened if Class C had performed at a constant
rate each year.
$10,000 OVER LIFE OF FUND
IMAHDR PRASUN SHR__CHT 19971231 19980130 120858 S00000000000001
FA Emerg Mkt Inc -CL C JP EMBI Plus
00488 JP004
1994/03/10 10000.00 10000.00
1994/03/31 9583.17 8807.82
1994/04/30 9709.74 8643.25
1994/05/31 10336.62 9282.15
1994/06/30 9820.53 8810.67
1994/07/31 10028.15 8971.50
1994/08/31 11229.20 9714.11
1994/09/30 11552.94 10014.32
1994/10/31 11256.94 9697.82
1994/11/30 11006.35 9687.51
1994/12/31 10180.30 9059.99
1995/01/31 9026.70 8623.61
1995/02/28 8365.12 8222.51
1995/03/31 8118.72 8056.78
1995/04/30 8811.66 8918.88
1995/05/31 9331.11 9695.07
1995/06/30 9389.60 9909.06
1995/07/31 9399.03 9869.98
1995/08/31 9594.43 10140.13
1995/09/30 9958.87 10536.55
1995/10/31 9888.04 10422.17
1995/11/30 10212.76 10724.86
1995/12/31 10840.78 11485.35
1996/01/31 11633.20 12358.18
1996/02/29 10977.80 11676.46
1996/03/31 11075.58 11942.44
1996/04/30 11641.10 12593.99
1996/05/31 11952.78 12811.92
1996/06/30 12236.74 13262.30
1996/07/31 12368.72 13539.46
1996/08/31 12817.53 14036.78
1996/09/30 13841.96 14942.02
1996/10/31 14227.42 15043.72
1996/11/30 15021.73 15810.38
1996/12/31 15143.81 16000.37
1997/01/31 15773.18 16442.93
1997/02/28 16026.88 16729.03
1997/03/31 15361.22 16123.30
1997/04/30 15879.45 16602.74
1997/05/31 16547.66 17247.58
1997/06/30 17060.51 17644.32
1997/07/31 17781.95 18376.34
1997/08/31 17672.14 18301.91
1997/09/30 18225.10 18861.14
1997/10/31 16393.15 16688.46
1997/11/30 16973.53 17480.82
1997/12/31 17503.14 18083.31
IMATRL PRASUN SHR__CHT 19971231 19980130 120901 R00000000000049
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Advisor Emerging Markets Income Fund - Class C on
March 10, 1994, when the fund started. As the chart shows, by December
31, 1997, the value of the investment would have been $17,503 - a
75.03% increase on the initial investment. For comparison, look at how
the J.P. Morgan Emerging Markets Bond Index Plus did over the same
period. With dividends and capital gains, if any, reinvested, the same
$10,000 investment would have grown to $18,083 - an 80.83% increase.
UNDERSTANDING
PERFORMANCE
MANY MARKETS AROUND THE GLOBE
OFFER THE POTENTIAL FOR SIGNIFICANT
GROWTH OVER TIME; HOWEVER,
INVESTING IN FOREIGN MARKETS MEANS
ASSUMING GREATER RISKS THAN
INVESTING IN THE UNITED STATES.
FACTORS LIKE CHANGES IN A COUNTRY'S
FINANCIAL MARKETS, ITS LOCAL POLITICAL
AND ECONOMIC CLIMATE, AND THE
FLUCTUATING VALUE OF ITS CURRENCY
CREATE THESE RISKS. FOR THESE
REASONS AN INTERNATIONAL FUND'S
PERFORMANCE MAY BE MORE VOLATILE
THAN A FUND THAT INVESTS EXCLUSIVELY
IN THE UNITED STATES. PAST
PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS AND YOU MAY HAVE A
GAIN OR LOSS WHEN YOU SELL YOUR
SHARES.
(CHECKMARK)
TOTAL RETURN COMPONENTS
YEARS ENDED DECEMBER 31, MARCH 10, 1994
(COMMENCEMENT
OF OPERATIONS) TO
DECEMBER 31,

1997 1996 1995 1994

DIVIDEND RETURN 8.08% 8.54% 8.69% 4.30%

CAPITAL APPRECIATION RETURN 7.50% 31.07% -2.31% -2.34%

TOTAL RETURN 15.58% 39.61% 6.38% 1.96%

DIVIDENDS PER SHARE 20.26(CENTS) 28.56(CENTS)

ANNUALIZED DIVIDEND RATE 19.73% 14.93%

30-DAY ANNUALIZED YIELD N/A -

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 $12.09 over the past one month, and $12.04 over the life of
class, 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. Yield
information will be reported once Class C has a longer, more stable,
operating history.
FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
The year that ended December 31,
1997, displayed the complexity and
variety of the world's financial
markets. The serenity of low interest
rates and subdued inflation that had
boosted a number of markets was
rudely interrupted in late October
when Asian markets stumbled
dramatically. Developed-market
government bonds benefited from
this crisis, as investors sought the
perceived safety of high-quality
issues. A strong U.S. dollar, however,
undermined gains for U.S.-based
investors in the Japanese and most
European markets. The Salomon
Brothers World Government Bond
Index - a measure of government
bond market performance in
developed nations - returned just
0.23% for the period. Inflation was
well-controlled throughout Europe,
and bond prices in countries such as
Spain and Italy were buoyed by
steady progress toward meeting the
requirements for membership in the
European Monetary Union (EMU).
Unlike other European currencies,
the pound sterling maintained its
strength, helping boost bond
performance in the United Kingdom.
The Asian volatility staggered
emerging bond markets in October
and left lingering concerns as the
new year began. The J.P. Morgan
Emerging Markets Bond Index
returned 16.15% for the period. Most
of these gains were posted during the
first three quarters of the year,
boosted by low interest rates and
positive government reforms. A lack
of inflation, declining interest rates
and the late-year flight to quality
boosted bonds in the U.S., with the
Lehman Brothers Aggregate Bond
Index returning 9.65% in 1997.
An interview with John Carlson, Portfolio Manager of Fidelity Advisor
Emerging Markets Income Fund
Q. HOW DID THE FUND PERFORM, JOHN?
A. Quite well. For the 12 months that ended December 31, 1997, the
fund's Class A, Class T, Class B and Class C shares posted returns of
16.52%, 16.47%, 15.70% and 15.58%, respectively. The emerging markets
debt funds average, as tracked by Lipper Analytical Services, returned
13.80% during this time. The J.P. Morgan Emerging Markets Bond Index
Plus returned 13.02%.
Q. HOW WOULD YOU CHARACTERIZE THE CLIMATE FOR EMERGING-MARKET DEBT
SECURITIES OVER THE PAST YEAR?
A. Overall, emerging-market debt had a good run through much of 1997.
From January through late October, the market enjoyed a favorable
backdrop of low interest-rate levels and continued economic reform
which resulted in a favorable credit spread environment. Credit
spreads measure the premium an investor pays for global risk. The last
quarter of the year, however, was a different story altogether.
Concerns about weakness in Southeast Asia and the resulting
late-October market declines in both Asian and U.S. equity markets,
put pressure on emerging-market investments.
Q. SOUTHEAST ASIA HAD A MAJOR COLLAPSE DURING THE PERIOD AS SEVERAL
CURRENCIES DECLINED. HOW BADLY WAS THE FUND AFFECTED?
A. The impact was minimal. The fund's exposure to Southeast Asia
historically has been limited for a number of reasons. First, there
have always been very few long-term, non-investment-grade debt
opportunities in that region. Second, the currencies of both Japan and
China had depreciated by almost 50% over the past couple of years. In
comparing the other regional currencies in Asia to both Japan and
China, it was my feeling that the smaller Asian markets were becoming
less competitive as their currencies were appreciating relative to
those in Japan and China. Finally, the historically high level of
economic growth of many of the Asian "tigers" appeared unsustainable
in light of excess global capacity and competitive pressures.
Q. DID YOU PURSUE ANY PARTICULAR STRATEGIES GIVEN THIS VOLATILITY?
A. Around late August, I perceived increased risk in the marketplace
due to some initial weakness in currency and equity markets as well as
some strong words of caution from the chairman of the U.S. Federal
Reserve Board. Despite these factors, though, volatility was
decreasing and options - which give the buyer the right, but not the
obligation, to buy or sell a security within a specified period of
time at a set price - were cheap. As a result, I bought an option
position on a Brazilian bond that worked out quite favorably. When the
market corrected dramatically in late October, the fund had at risk
only the amount that it had paid for the premium on the option. If I
hadn't had the option - and the fund owned the security itself - the
fund's losses would have been considerably higher. Owning the option
gave the fund some exposure to Brazil, which I felt was important, and
allowed the fund to participate in the early-fall rally of Brazilian
Brady bonds, which are dollar-denominated and issued by foreign
governments. When the market corrected, the option provided downside
protection.
Q. SIX MONTHS AGO, YOU WERE OPTIMISTIC ABOUT THE FUND'S EXPOSURE TO
RUSSIA. HOW DID RUSSIAN BONDS PERFORM DURING THE PERIOD?
A. At the beginning of the year, the fund was underweighted in Russian
bonds relative to the index. As fiscal reform in Russia appeared
promising, I began to raise the fund's Russian exposure in the late
spring and early summer and the bonds performed well. As economic
conditions weakened in Asia, however, I felt that Russia - being a
major emerging-market country with some remaining fiscal concerns -
would be vulnerable. I subsequently began decreasing the fund's
Russian exposure - and adding Russian options - to try to limit the
fund's downside risk. This strategy has paid off, as pressure on the
Russian bond market continued toward the close of the period.
Q. WHICH OTHER POSITIONS CONTRIBUTED POSITIVELY TO PERFORMANCE? WHICH
WERE DISAPPOINTMENTS?
A. The fund's positions in Bulgaria, Argentina and Brazil also turned
in strong performances. On a down note, I reduced the fund's positions
in Ecuador earlier in the year due to political uncertainty. However,
the bonds continued to rally.
Q. WHAT'S YOUR OUTLOOK?
A. With all that has gone on in recent months, I'm certainly
concerned. While global volatility has been alarming, one bright spot
may be that the dislocation - or re-pricing of certain emerging-market
securities downward - may present ample opportunities. Shareholders
should expect a continuation of the same disciplined investment
approach: I'll keep a close eye on risk, credit spreads and interest
rates as they relate to the portfolio.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET AND OTHER CONDITIONS.
JOHN CARLSON EXPLORES THE
"CONTAGION EFFECT":
"ALONG WITH THE SOUTHEAST ASIAN
TURMOIL WE'VE WITNESSED RECENTLY,
THE PHRASE "CONTAGION" HAS ALMOST
BECOME PART OF THE MARKET'S DAILY
LANGUAGE. CONTAGION REFERS TO BOTH
THE REAL AND PSYCHOLOGICAL EFFECTS
THAT IMPACT INVESTOR BEHAVIOR WITHIN
OR ACROSS MARKETS. THERE ARE A NUMBER
OF CATCHY PHRASES THAT DESCRIBE THIS
LINK BETWEEN MARKETS, SUCH AS `WHEN
THE U.S. ECONOMY SNEEZES, MEXICO
CATCHES A COLD.'
"ASIAN CONTAGION, BEGINNING LAST YEAR
AS A CURRENCY CRISIS IN THAILAND, IS AN
EXAMPLE. AS SPECULATION AGAINST THE
SUSTAINABILITY OF THAILAND'S CURRENCY
REGIME INCREASED, THAI AUTHORITIES
DEVALUED THE COUNTRY'S CURRENCY.
PRESSURE SPILLED OVER TO OTHER
SOUTHEAST ASIAN COUNTRIES, RESULTING
IN A WAVE OF COMPETITIVE DEVALUATIONS
IN COUNTRIES SUCH AS INDONESIA, THE
PHILIPPINES AND SINGAPORE. INVESTORS
WONDERED WHERE IT WOULD STOP, AND
THIS UNCERTAINTY HAD RAMIFICATIONS
IN BOTH BRAZIL AND RUSSIA.
"BUT THE CONTAGION WASN'T LIMITED TO
CURRENCY PRESSURES. INVESTORS
SUFFERING LOSSES IN SOUTHEAST ASIAN
MARKETS TOOK PROFITS BY SELLING EQUITY
POSITIONS IN OTHER REGIONS. THIS
COMPOUNDED THE DOWNWARD
PRESSURE ON MANY CURRENCIES,
RESULTING IN ADDITIONAL SELLING. STOCK
MARKETS IN EMERGING COUNTRIES SUCH
AS ARGENTINA SUFFERED MAJOR LOSSES,
AS DID THOSE IN HONG KONG. THE
EFFECTS OF SUCH DEVELOPMENTS WILL BE
SLOWER GLOBAL ECONOMIC GROWTH,
WHICH HAS LED TO CONCERNS ABOUT
GROWTH RATES IN THE U.S. AND OTHER
DEVELOPED COUNTRIES IN THE YEAR
AHEAD."
FUND FACTS
GOAL: A HIGH LEVEL OF CURRENT
INCOME BY INVESTING PRIMARILY
IN DEBT SECURITIES AND OTHER
INSTRUMENTS OF ISSUERS IN
EMERGING MARKETS; AS A
SECONDARY OBJECTIVE, THE FUND
MAY SEEK CAPITAL APPRECIATION
START DATE: MARCH 10, 1994
SIZE: AS OF DECEMBER 31,
1997, MORE THAN $120 MILLION
MANAGER: JOHN CARLSON, SINCE
1995; JOINED FIDELITY IN 1995
(CHECKMARK)
INVESTMENT CHANGES

TOP FIVE COUNTRIES AS OF DECEMBER 31, 1997
(EXCLUDING CASH EQUIVALENTS) % OF FUND'S % OF FUND'S INVESTMENTS
INVESTMENTS IN THESE COUNTRIES
6 MONTHS AGO

BRAZIL 18.6 13.3

ARGENTINA 15.3 14.2

MEXICO 9.9 8.8

RUSSIA 6.8 9.8

VENEZUELA 5.2 10.6

TOP COUNTRIES ARE BASED UPON LOCATION OF ISSUER OF EACH SECURITY,
INCLUDING WHERE THE FUND IS EXPOSED TO POTENTIAL POLITICAL AND CREDIT
RISKS.
TOP FIVE HOLDINGS AS OF DECEMBER 31, 1997

<TABLE>
<CAPTION>
<S> <C> <C>
(BY ISSUER, EXCLUDING CASH EQUIVALENTS) % OF FUND'S % OF FUND'S INVESTMENTS
INVESTMENTS IN THESE HOLDINGS
6 MONTHS AGO

BRAZILIAN FEDERATIVE REPUBLIC 18.1 11.6

ARGENTINIAN REPUBLIC 12.2 12.4

UNITED MEXICAN STATES 5.6 8.8

BULGARIAN REPUBLIC BRADY 4.8 5.4

VENEZUELAN REPUBLIC 4.7 10.6

</TABLE>

AVERAGE YEARS TO MATURITY AS OF DECEMBER 31, 1997
6 MONTHS AGO

YEARS 15.3 14.4

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 (% OF FUND'S INVESTMENTS)
AS OF DECEMBER 31, 1997 AS OF JUNE 30, 1997

CORPORATE BONDS 8.3%
FOREIGN GOVERNMENT
OBLIGATIONS 68.8%
OTHER 9.5%
SHORT-TERM
INVESTMENTS 13.4%
CORPORATE BONDS 4.8%
FOREIGN GOVERNMENT
OBLIGATIONS 68.2%
OTHER 12.5%
SHORT-TERM
INVESTMENTS 14.5%
ROW: 1, COL: 1, VALUE: 13.4
ROW: 1, COL: 2, VALUE: 9.5
ROW: 1, COL: 3, VALUE: 68.8
ROW: 1, COL: 4, VALUE: 8.300000000000001
ROW: 1, COL: 1, VALUE: 14.5
ROW: 1, COL: 2, VALUE: 12.5
ROW: 1, COL: 3, VALUE: 68.2
ROW: 1, COL: 4, VALUE: 4.8
INVESTMENTS DECEMBER 31, 1997

SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENT IN SECURITIES

NONCONVERTIBLE BONDS - 8.3%
MOODY'S RATINGS (C) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (B) (NOTE 1)
ARGENTINA - 3.1%
Compania Latinoamericana de Infraestructura &
Servicios SA:
11 5/8%, 6/1/04 (f) BB- $ 1,450,000 $ 1,479,000
11 5/8%, 6/1/04 BB- 790,000 805,800
Telefonica De Argentina 11 7/8%, 11/1/04 Ba3 1,220,000 1,418,250
3,703,050
KOREA (SOUTH) - 0.5%
Korea Development Bank:
yankee 7 1/4%, 5/15/06 Ba1 420,000 327,600
6 5/8%, 11/21/03 Ba1 360,000 280,800
608,400
MEXICO - 4.2%
Banco Nacional de Comercio Exterior SNC
11 1/4%, 5/30/06 (Reg.) Ba2 3,410,000 3,802,150
Petroleos Mexicanos 9 1/2%, 9/15/27 BB 1,180,000 1,174,100
4,976,250
VENEZUELA - 0.5%
Bariven SA 10 5/8%, 3/17/02 Ba2 600,000 651,000
TOTAL NONCONVERTIBLE BONDS
(Cost $10,112,524) 9,938,700
FOREIGN GOVERNMENT OBLIGATIONS (I) - 68.8%
ANGOLA - 0.1%
Banco Nacional de Angola 0%, 9/10/27 - 539,628 161,888
ARGENTINA - 12.2%
Argentinian Republic:
Brady par euro 5 1/2%, 3/31/23 (e) Ba3 11,675,000 8,559,234
BOCON 3.29%, 4/1/07 (h) Ba3 ARS 25,563 17,866
global bond:
11 3/8%, 1/30/17 Ba3 690,000 754,860
11 3/8%, 1/30/17 Ba3 1,210,000 1,323,740
9 3/4%, 9/19/27 Ba3 3,161,000 3,028,633
11 3/4%, 2/12/07 Ba3 ARS 990,000 930,777
14,615,110
FOREIGN GOVERNMENT OBLIGATIONS (I) - CONTINUED
MOODY'S RATINGS (C) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (B) (NOTE 1)
BRAZIL - 18.1%
Brazilian Federative Republic:
Brady:
capitalization bond 8%, 4/15/14 B1 $ 16,579,383 $ 13,035,540
debt conversion bond euro
6 3/4%, 4/15/12 (h) B1 6,925,000 5,263,000
par 5 1/4%, 4/15/24 (e) B1 1,220,000 879,162
global bond 10 1/8%, 5/15/27 B1 2,570,000 2,409,375
21,587,077
BULGARIA - 4.8%
Bulgarian Republic Brady:
discount 6.6875%, 7/28/24 (h) B2 2,390,000 1,840,300
FLIRB A 2 1/4%, 7/28/12 (h) B2 6,385,000 3,886,869
5,727,169
DOMINICAN REPUBLIC - 0.8%
Dominican Republic Brady 6.6875%, 8/30/09 (h) B1 1,267,200 983,664
ECUADOR - 3.8%
Ecuador Republic Brady:
par euro 3 1/2%, 2/28/25 (e) B1 5,395,000 2,973,994
past due interest euro
6.6875%, 2/28/15 (bearer) (h) B1 2,340,219 1,529,918
4,503,912
IVORY COAST - 0.3%
Ivory Coast past due interest
0%, 12/29/49 (g) - 880,000 345,400
JORDAN - 0.9%
Kingdom of Jordan 5%, 12/23/23 (f)(h) Ba3 1,500,000 1,020,000
KAZAKHSTAN - 0.9%
Kazakhstan Republic 9 1/4%, 12/20/99 (Reg.) Ba3 1,120,000 1,092,000
MEXICO - 5.6%
Mexico Value recovery rights 6/30/03:
discount A - 1,000 -
discount C - 2,000 -
FOREIGN GOVERNMENT OBLIGATIONS (I) - CONTINUED
MOODY'S RATINGS (C) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (B) (NOTE 1)
MEXICO - CONTINUED
United Mexican States:
Brady discount:
par A 6 1/4%, 12/31/19 unit Ba2 $ 3,520,000 $ 2,934,800
par B 6 1/4%, 12/31/19 unit Ba2 2,050,000 1,709,187
global bond 11 1/2%, 5/15/26 Ba2 1,691,000 2,003,835
6,647,822
PANAMA - 1.5%
Panamanian Republic:
Brady par 3 1/4%, 7/17/26 (e) Ba1 1,470,000 940,800
euro 7 7/8%, 2/13/02 (Reg.) Ba1 830,000 801,987
1,742,787
PERU - 3.5%
Peruvian Republic Brady FLIRB:
3 1/4%, 3/7/17 (f)(h) B2 1,350,000 800,719
3 1/4%, 3/7/17 (h) B2 5,720,000 3,392,675
4,193,394
PHILIPPINES - 0.8%
Philippine Government Brady par 6 1/2%,
12/1/17 (e) Ba1 1,080,000 901,800
POLAND - 3.4%
Polish Republic:
Brady par 3%, 10/27/24 (e) Baa 5,240,000 3,216,050
7 1/8%, 7/1/04 Baa 840,000 840,000
4,056,050
RUSSIA - 3.7%
Bank for Foreign Economic Affairs of Russia
(Vnesheconombank) interest notes:
6.7188%, 12/15/15 (f) Ba2 3,305,956 2,326,567
6.7188%, 12/15/15 Ba2 840,000 591,150
Russian Government euro 10%, 6/26/07 Ba2 1,650,000 1,524,187
4,441,904
FOREIGN GOVERNMENT OBLIGATIONS (I) - CONTINUED
MOODY'S RATINGS (C) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (B) (NOTE 1)
TURKEY - 3.7%
Turkish Republic Treasury Bill:
0%, 5/13/98 (j) - TRL 212,310 $ 725,608
0%, 8/5/98 (j) - TRL 112,570 320,434
0%, 8/12/98 (j) - TRL 747,500 2,095,149
0%, 9/16/98 (j) - TRL 472,730 1,238,550
4,379,741
VENEZUELA - 4.7%
Venezuelan Republic:
Brady:
debt conversion bond
6.8125%, 12/18/07 (h) Ba2 3,095,239 2,768,304
par A 6 3/4%, 3/31/20 unit Ba2 500,000 433,750
par A euro 6 3/4%, 3/31/20 Ba2 2,840,000 2,463,700
Oil recovery rights 3/31/20 - 14,230 -
5,665,754
TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost $80,015,378) 82,065,472
SOVEREIGN LOAN PARTICIPATIONS - 8.1%
CAMEROON - 0.2%
Cameroon Republic loan participation (a):
- - Societe Generale - DEM 980,000 152,572
- Societe Generale - FRF 1,960,000 91,110
243,682
CONGO - 0.2%
Congo Republic loan participation (a) :
- - Societe Generale - 464,670 139,401
- Societe Generale - DEM 255,860 42,679
- Societe Generale - FRF 841,728 41,922
224,002
IVORY COAST - 1.5%
Ivory Coast restructured loan (a):
- - Morgan (J.P.) Securities, Inc. - 2,750,000 1,189,375
- Paribas Capital Markets - 1,440,000 622,800
1,812,175
SOVEREIGN LOAN PARTICIPATIONS - CONTINUED
MOODY'S RATINGS (C) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (B) (NOTE 1)
MOROCCO - 4.0%
Moroccan Kingdom loan participation:
- The Chase Manhattan Bank
6.6563%, 1/1/09 (h) - $ 1,560,000 $ 1,343,550
- ING Bank NV 6.6563%, 1/1/09 (h) - 750,000 645,938
- Merrill Lynch Pierce, Fenner & Smith, Inc.
6.6563%, 1/1/09 (h) - 500,000 430,625
- Paribas Capital Markets 6.6563%, 1/1/09 (h) - 670,000 577,038
Series A,
- Morgan Guaranty Trust
Company of New York 6.6563%, 1/1/09 (h) - 2,070,000 1,782,788
4,779,939
RUSSIA - 2.2%
Bank for Foreign Economic Affairs of Russia
(Vnesheconombank) loan participation:
- The Chase Manhattan Bank 6.7188%,
12/15/20 (h) - 1,730,000 1,130,250
- ING Bank NV 6.7188%, 12/15/20 (h) - 2,430,000 1,503,563
2,633,813
TOTAL SOVEREIGN LOAN PARTICIPATIONS
(Cost $8,863,725) 9,693,611
CASH EQUIVALENTS - 13.4%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations), in a joint
trading account at 6.40%, dated
12/31/97 due 1/2/98 $ 15,964,676 15,959,000
PURCHASED OPTIONS - 1.4%
EXPIRATION DATE/ UNDERLYING FACE
STRIKE PRICE AMOUNT AT VALUE
BRAZIL - 0.5%
Merril Lynch International Call Option
on $7,559,372 notional amount of
Brazilian Federative Republic Brady Mar. 98/
Capitalization bond 8%, 4/15/14 72 3/4 $ 5,943,556 549,566
PURCHASED OPTIONS - CONTINUED
EXPIRATION DATE/ UNDERLYING FACE VALUE (NOTE 1)
STRIKE PRICE AMOUNT AT VALUE
RUSSIA - 0.9%
The Chase Manhattan Bank Call Option on
$4,400,000 notional amount of Bank for
Foreign Economic Affairs of Russia
(Vnesheconombank) loan participation
restructured under 1997 agreement Mar. 98/
6.7188%, 12/15/20 55 $ 2,722,500 $ 363,440
Merrill Lynch International Call Option on
$8,700,000 notional amount of Bank for
Foreign Economic Affairs of Russia
(Vnesheconombank) loan participation
restructured under 1997 agreement Mar. 98/
6.7188%, 12/15/20 54 5/8 5,383,125 774,300
1,137,740
TOTAL PURCHASED OPTIONS
(Cost $1,195,207) 1,687,306
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $116,145,834) $ 119,344,089
SECURITY TYPE ABBREVIATIONS
FLIRB - Front Loaded Interest
Reduction Bonds
CURRENCY ABBREVIATIONS
ARS - Argentine peso
FRF - French franc
DEM - German deutsche mark
TRL - Turkish lira
LEGEND
1. Non-income producing
2. Principal amount is stated in United States dollars unless
otherwise noted.
3. Standard & Poor's credit ratings are used in the absence of a
rating by Moody's Investors Service, Inc.
4. Debt obligation initially issued at zero coupon form which converts
to coupon form at a specified rate and date.
5. Debt obligation initially issued at one coupon which converts to a
higher coupon at a specified date. The rate shown is the rate at
period end.
6. 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 $5,626,286 or
4.7% of net assets.
7. Security purchased on a delayed delivery or when-issued basis (see
Note 2 of Notes to Financial Statements).
8. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
9. For foreign government obligations not 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.
10. Principal amount in millions.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total
value of investment in securities, is as follows (ratings are
unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 0.0% AAA, AA, A 0.0%
Baa 3.4% BBB 5.4%
Ba 35.7% BB 48.9%B 31.0% B 5.2%
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 Moody's or S&P amounted to 8.5%. FMR has determined that
unrated debt securities that are lower quality account for 8.5% of the
total value of investment in securities.
INCOME TAX INFORMATION
At December 31, 1997, the aggregate cost of investment securities for
income tax purposes was $118,800,140. Net unrealized appreciation
aggregated $543,949, of which $3,975,175 related to appreciated
investment securities and $3,431,226 related to depreciated investment
securities.
The fund hereby designates approximately $1,123,000 as a capital gain
dividend for the pupose of the dividend paid deduction.
The fund intends to elect to defer to its fiscal year ending December
31, 1998 approximately $1,921,000 of losses recognized during the
period November 1, 1997 to December 31, 1997.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
DECEMBER 31, 1997

11.ASSETS 12. 13.

14.INVESTMENT IN SECURITIES, AT VALUE (INCLUDING REPURCHASE 15. $ 119,344,089
AGREEMENTS OF $15,959,000) (COST $116,145,834) -
SEE ACCOMPANYING SCHEDULE

16.CASH 17. 194,664

18.RECEIVABLE FOR INVESTMENTS SOLD 19. 1,038,487
REGULAR DELIVERY

20. DELAYED DELIVERY 5,090,913

21.INTEREST RECEIVABLE 22. 1,573,821

23.PREPAID EXPENSES 24. 11,415

25. 26.TOTAL ASSETS 27. 127,253,389

28.LIABILITIES 29. 30.

31.PAYABLE FOR INVESTMENTS PURCHASED $ 1,108,160 32.
REGULAR DELIVERY

33. DELAYED DELIVERY 5,003,768 34.

35.DISTRIBUTIONS PAYABLE 434,536 36.

37.ACCRUED MANAGEMENT FEE 62,783 38.

39.DISTRIBUTION FEES PAYABLE 36,536 40.

41.OTHER PAYABLES AND ACCRUED EXPENSES 104,803 42.

43. 44.TOTAL LIABILITIES 45. 6,750,586

46.47.NET ASSETS 48. $ 120,502,803

49.NET ASSETS CONSIST OF: 50. 51.

52.PAID IN CAPITAL 53. $ 116,636,598

54.UNDISTRIBUTED NET INVESTMENT INCOME 55. 424,276

56.ACCUMULATED UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON 57. 272,315
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS

58.NET UNREALIZED APPRECIATION (DEPRECIATION) ON 59. 3,169,614
INVESTMENTS AND ASSETS AND LIABILITIES IN FOREIGN CURRENCIES

60.61.NET ASSETS 62. $ 120,502,803

</TABLE>

STATEMENT OF ASSETS AND LIABILITIES - CONTINUED
DECEMBER 31, 1997

63.CALCULATION OF MAXIMUM OFFERING PRICE 66. $11.12
64.CLASS A:
65.NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
($2,312,524 (DIVIDED BY) 207,996 SHARES)

67.MAXIMUM OFFERING PRICE PER SHARE (100/95.25 OF 68. $11.67
$11.12)

69.CLASS T: 71. $11.11
70.NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
($93,228,277 (DIVIDED BY) 8,391,971 SHARES)

72.MAXIMUM OFFERING PRICE PER SHARE (100/96.50 OF 73. $11.51
$11.11)

74.CLASS B: 76. $11.16
75.NET ASSET VALUE AND OFFERING PRICE PER SHARE
($23,575,672 (DIVIDED BY) 2,113,426 SHARES) A

77.CLASS C: 79. $11.11
78.NET ASSET VALUE, AND OFFERING PRICE PER SHARE
($66,047 (DIVIDED BY) 5,946 SHARES) A

80.INSTITUTIONAL CLASS: 82. $11.06
81.NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE
PER
SHARE ($1,320,283 (DIVIDED BY) 119,357 SHARES)

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>
YEAR ENDED DECEMBER 31, 1997

83.INVESTMENT INCOME 85. $ 10,335,858
84.INTEREST

86.LESS FOREIGN TAXES WITHHELD (143,617)

87. TOTAL INCOME 10,192,241

88.EXPENSES 89. 90.

91.MANAGEMENT FEE $ 822,554 92.

93.TRANSFER AGENT FEES 316,479 94.

95.DISTRIBUTION FEES 432,618 96.

97.ACCOUNTING FEES AND EXPENSES 91,562 98.

99.NON-INTERESTED TRUSTEES' COMPENSATION 481 100.

101.CUSTODIAN FEES AND EXPENSES 54,721 102.

103.REGISTRATION FEES 87,228 104.

105.AUDIT 68,324 106.

107.LEGAL 8,247 108.

109.REPORTS TO SHAREHOLDERS 55,754 110.

111.MISCELLANEOUS 504 112.

113. TOTAL EXPENSES BEFORE REDUCTIONS 1,938,472 114.

115. EXPENSE REDUCTIONS (62,107) 1,876,365

116.117.NET INVESTMENT INCOME 118. 8,315,876

119.REALIZED AND UNREALIZED GAIN (LOSS) 121. 122.
120.NET REALIZED GAIN (LOSS) ON:

123. INVESTMENT SECURITIES 13,132,464 124.

125. FOREIGN CURRENCY TRANSACTIONS 2,535 13,134,999

126.CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) 127. 128.
ON:

129. INVESTMENT SECURITIES (4,782,094) 130.

131. ASSETS AND LIABILITIES IN FOREIGN CURRENCIES (28,772) (4,810,866)

132.133.NET GAIN (LOSS) 134. 8,324,133

135.136.NET INCREASE (DECREASE) IN NET ASSETS RESULTING 137. $ 16,640,009
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1997 1996

138.INCREASE (DECREASE) IN NET ASSETS

139.OPERATIONS $ 8,315,876 $ 5,003,629
NET INVESTMENT INCOME

140. NET REALIZED GAIN (LOSS) 13,134,999 14,771,228

141. CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) (4,810,866) 4,852,770

142. 16,640,009 24,627,627
143.NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS

144.DISTRIBUTIONS TO SHAREHOLDERS (9,380,291) (4,919,274)
FROM NET INVESTMENT INCOME

145. FROM NET REALIZED GAIN (14,029,285) (3,337,616)

146. 147.TOTAL DISTRIBUTIONS (23,409,576) (8,256,890)

148.SHARE TRANSACTIONS - NET INCREASE (DECREASE) 27,548,589 37,461,113

149. 20,779,022 53,831,850
150.TOTAL INCREASE (DECREASE) IN NET ASSETS

151.NET ASSETS 152. 153.

154. BEGINNING OF PERIOD 99,723,781 45,891,931

155. $ 120,502,803 $ 99,723,781
END OF PERIOD (INCLUDING UNDISTRIBUTED NET INVESTMENT
INCOME OF $424,276 AND $306,279, RESPECTIVELY)

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS A
156. YEARS ENDED DECEMBER 31,

157. 1997 1996 E

<TABLE>
<CAPTION>
<S> <C> <C>
158.SELECTED PER-SHARE DATA D

159.NET ASSET VALUE, BEGINNING OF PERIOD $ 11.720 $ 10.520

160.INCOME FROM INVESTMENT OPERATIONS

161. NET INVESTMENT INCOME .953 .274

162. NET REALIZED AND UNREALIZED GAIN (LOSS) .891 1.574

163. TOTAL FROM INVESTMENT OPERATIONS 1.844 1.848

164.LESS DISTRIBUTIONS

165. FROM NET INVESTMENT INCOME (.984) (.238)

166. FROM NET REALIZED GAIN (1.460) (.410)

167. TOTAL DISTRIBUTIONS (2.444) (.648)

168.NET ASSET VALUE, END OF PERIOD $ 11.120 $ 11.720

169.TOTAL RETURN B, C 16.52% 17.71%

170.RATIOS AND SUPPLEMENTAL DATA

171.NET ASSETS, END OF PERIOD (000 OMITTED) $ 2,313 $ 478

172.RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.40% F 1.40% A, F

173.RATIO OF EXPENSES TO AVERAGE NET ASSETS AFTER EXPENSE REDUCTIONS 1.38% G 1.40% A

174.RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS 7.74% 7.31% A

175.PORTFOLIO TURNOVER RATE 660% 410%

</TABLE>

A ANNUALIZED
B THE TOTAL RETURNS 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 NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD SEPTEMBER 3, 1996 (COMMENCEMENT OF SALE OF CLASS A
SHARES) TO DECEMBER 31, 1996.
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES
(SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
FINANCIAL HIGHLIGHTS - CLASS T

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
176. YEARS ENDED DECEMBER 31,

177. 1997 1996 1995 1994 E

178.SELECTED PER-SHARE DATA

179.NET ASSET VALUE, $ 11.710 $ 9.280 $ 9.520 $ 10.000
BEGINNING OF PERIOD

180.INCOME FROM INVESTMENT OPERATIONS

181. NET INVESTMENT INCOME .877 D .758 D .860 .356

182. NET REALIZED AND UNREALIZED GAIN .961 2.832 (.323) (.073)
(LOSS)

183. TOTAL FROM INVESTMENT OPERATIONS 1.838 3.590 .537 .283

184.LESS DISTRIBUTIONS

185. FROM NET INVESTMENT INCOME (.978) (.750) (.777) (.503)

186. FROM NET REALIZED GAIN (1.460) (.410) - (.260)

187. TOTAL DISTRIBUTIONS (2.438) (1.160) (.777) (.763)

188.NET ASSET VALUE, END OF PERIOD $ 11.110 $ 11.710 $ 9.280 $ 9.520

189.TOTAL RETURN B, C 16.47% 40.41% 6.99% 2.47%

190.RATIOS AND SUPPLEMENTAL DATA

191.NET ASSETS, END OF PERIOD (000 $ 93,228 $ 78,861 $ 36,205 $ 30,029
OMITTED)

192.RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.47% 1.49% 1.50% F 1.50% A, F

193.RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.45% G 1.48% G 1.50% 1.50% A

AFTER EXPENSE REDUCTIONS

194.RATIO OF NET INVESTMENT INCOME TO 7.08% 7.23% 9.32% 6.60% A
AVERAGE
NET ASSETS

195.PORTFOLIO TURNOVER RATE 660% 410% 305% 354% A

</TABLE>

A ANNUALIZED
B THE TOTAL RETURNS 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 NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD MARCH 10, 1994 (COMMENCEMENT OF OPERATIONS) TO
DECEMBER 31, 1994.
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES
(SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
FINANCIAL HIGHLIGHTS - CLASS B

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
196. YEARS ENDED DECEMBER 31,

197. 1997 1996 1995 1994 E

198.SELECTED PER-SHARE DATA

199.NET ASSET VALUE, BEGINNING OF PERIOD $ 11.750 $ 9.300 $ 9.520 $ 9.700

200.INCOME FROM INVESTMENT OPERATIONS

201. NET INVESTMENT INCOME .806 D .686 D .835 .167

202. NET REALIZED AND UNREALIZED GAIN .956 2.853 (.342) .227
(LOSS)

203. TOTAL FROM INVESTMENT OPERATIONS 1.762 3.539 .493 .394

204.LESS DISTRIBUTIONS

205. FROM NET INVESTMENT INCOME (.892) (.679) (.713) (.314)

206. FROM NET REALIZED GAIN (1.460) (.410) - (.260)

207. TOTAL DISTRIBUTIONS (2.352) (1.089) (.713) (.574)

208.NET ASSET VALUE, END OF PERIOD $ 11.160 $ 11.750 $ 9.300 $ 9.520

209.TOTAL RETURN B, C 15.70% 39.61% 6.38% 3.67%

210.RATIOS AND SUPPLEMENTAL DATA

211.NET ASSETS, END OF PERIOD (000 $ 23,576 $ 17,746 $ 9,486 $ 5,034
OMITTED)

212.RATIO OF EXPENSES TO AVERAGE NET 2.15% 2.15% F 2.25% F 2.25% A, F
ASSETS

213.RATIO OF EXPENSES TO AVERAGE NET 2.13% G 2.15% 2.25% 2.25% A
ASSETS AFTER EXPENSE REDUCTIONS

214.RATIO OF NET INVESTMENT INCOME TO 6.48% 6.56% 8.48% 5.86% A
AVERAGE
NET ASSETS

215.PORTFOLIO TURNOVER RATE 660% 410% 305% 354% A

</TABLE>

A ANNUALIZED
B THE TOTAL RETURNS 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 CONTINGENT DEFERRED SALES CHARGE
AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD JUNE 30, 1994 (COMMENCEMENT OF SALE OF CLASS B
SHARES) TO DECEMBER 31, 1994.
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES
(SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
FINANCIAL HIGHLIGHTS - CLASS C
216. YEAR ENDED
DECEMBER 31,

217. 1997 E

218.SELECTED PER-SHARE DATA D

219.NET ASSET VALUE, BEGINNING OF PERIOD $ 12.190

220.INCOME FROM INVESTMENT OPERATIONS

221. NET INVESTMENT INCOME .154

222. NET REALIZED AND UNREALIZED GAIN (LOSS) .322

223. TOTAL FROM INVESTMENT OPERATIONS .476

224.LESS DISTRIBUTIONS

225. FROM NET INVESTMENT INCOME (.286)

226. FROM NET REALIZED GAIN (1.270)

227. TOTAL DISTRIBUTIONS (1.556)

228.NET ASSET VALUE, END OF PERIOD $ 11.110

229.TOTAL RETURN B, C 4.16%

230.RATIOS AND SUPPLEMENTAL DATA

231.NET ASSETS, END OF PERIOD (000 OMITTED) $ 66

232.RATIO OF EXPENSES TO AVERAGE NET ASSETS 2.25% A, F

233.RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS 9.04% A

234.PORTFOLIO TURNOVER RATE 660%

A ANNUALIZED
B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS).
C TOTAL RETURNS DO NOT INCLUDE THE CONTINGENT DEFERRED SALES CHARGE
AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD NOVEMBER 3, 1997 (COMMENCEMENT OF SALE OF CLASS C
SHARES) TO DECEMBER 31, 1997.
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS

<TABLE>
<CAPTION>
<S> <C> <C> <C>
235. YEARS ENDED DECEMBER 31,

236. 1997 1996 1995 E

237.SELECTED PER-SHARE DATA

238.NET ASSET VALUE, BEGINNING OF PERIOD $ 11.650 $ 9.280 $ 8.400

239.INCOME FROM INVESTMENT OPERATIONS

240. NET INVESTMENT INCOME .860 D .786 D .393

241. NET REALIZED AND UNREALIZED GAIN (LOSS) 1.008 2.779 .876

242. TOTAL FROM INVESTMENT OPERATIONS 1.868 3.565 1.269

243.LESS DISTRIBUTIONS

244. FROM NET INVESTMENT INCOME (.998) (.785) (.389)

245. FROM NET REALIZED GAIN (1.460) (.410) -

246. TOTAL DISTRIBUTIONS (2.458) (1.195) (.389)

247.NET ASSET VALUE, END OF PERIOD $ 11.060 $ 11.650 $ 9.280

248.TOTAL RETURN B, C 16.84% 40.21% 15.52%

249.RATIOS AND SUPPLEMENTAL DATA

250.NET ASSETS, END OF PERIOD (000 OMITTED) $ 1,320 $ 2,639 $ 201

251.RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.25% F 1.25% F 1.25% A, F

252.RATIO OF EXPENSES TO AVERAGE NET ASSETS AFTER 1.23% G 1.25% 1.25% A
EXPENSE REDUCTIONS

253.RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS 6.85% 7.46% 9.09% A

254.PORTFOLIO TURNOVER RATE 660% 410% 305% A

</TABLE>

A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO
FINANCIAL STATEMENTS).
D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD JULY 3, 1995 (COMMENCEMENT OF SALE OF INSTITUTIONAL
CLASS SHARES) TO DECEMBER 31, 1995.
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES
(SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
NOTES TO FINANCIAL STATEMENTS
For the period ended December 31, 1997

1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Advisor Emerging Markets 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, Class T, Class B,Class C, and Institutional
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 C shares on
November 3, 1997. Investment income, realized and unrealized capital
gains and losses, the common expenses of the fund, and certain
fund-level expense reductions, if any, 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, expenses, and expense reductions.
The financial statements have been prepared in conformity with
generally accepted accounting principles which permit management to
make certain estimates and assumptions at the date of the financial
statements. The following summarizes the significant accounting
policies of the fund:
SECURITY VALUATION. Securities for which quotations are readily
available are valued at the last sale price, or if no sale price, at
the closing bid price in the principal market in which such securities
are normally traded. Securities (including restricted securities) for
which quotations are not readily available are valued primarily using
dealer-supplied valuations or at their fair value as determined in
good faith under consistently applied procedures under the general
supervision of the Board of Trustees. Short-term securities with
remaining maturities of sixty days or less for which quotations are
not readily available 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. Income
receipts and expense payments are translated into U.S. dollars at the
prevailing exchange rate on the respective dates of the transactions.
Purchases and sales of securities are translated into U.S. dollars at
the contractual currency exchange rates established at the time of
each trade.
Net realized gains and losses on foreign currency transactions
represent net gains and losses from sales and maturities of foreign
currency contracts and foreign currency options, disposition of
foreign currencies, and the difference between the amount of net
investment income accrued and the U.S. dollar amount actually
received. The effects of changes in foreign currency exchange rates on
investments in securities are included with the net realized and
unrealized gain or loss on investment securities.
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
substantially all of its taxable income for its fiscal year. The fund
may be subject to foreign taxes on income and gains on investments
which are accrued based upon the fund's understanding of the tax rules
and regulations that exist in the markets in which it invests. The
fund accrues such taxes as applicable. The schedule of investments
includes information regarding income taxes under the caption "Income
Tax Information."
INVESTMENT INCOME. Interest income, which includes accretion of
original issue discount, is accrued as earned. Interest income is
recorded net of foreign taxes withheld where recovery of such taxes is
uncertain.
EXPENSES. Most expenses of the trust can be directly attributed to a
fund. Expenses which cannot be directly attributed are apportioned
among the funds in the trust.
PREPAID EXPENSES. Fidelity Management & Research Company (FMR) bears
all organizational expenses except for registering and qualifying
Class C and shares of Class C for distribution under federal and
state securities law. These expenses are borne by Class C and
amortized over one year.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are declared daily and
paid monthly from net investment income. Distributions from realized
gains, if any, are recorded on the ex-dividend date. Income dividends
and capital gain distributions are declared separately for each class.
Income and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles. These differences, which may result in
distribution reclassifications, are primarily due to differing
treatments for foreign currency transactions, market discount 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.
Undistributed net investment income and accumulated undistributed net
realized gain (loss) on investments and foreign currency transactions
may include temporary book and tax basis differences which will
reverse in a subsequent period. Any taxable income or gain remaining
at fiscal year end is distributed in the following year.
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.
FOREIGN CURRENCY CONTRACTS. The fund generally uses foreign currency
contracts to facilitate transactions in foreign-denominated
securities. 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 foreign currency contracts is
determined using contractual currency exchange rates established at
the time of each trade. The cost of the foreign currency contracts is
included in the cost basis of the associated investment.
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 for U.S. Treasury or Federal Agency
obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
securities are transferred to an account of the fund, or to the Joint
Trading Account, at a bank custodian. The securities are
marked-to-market daily and maintained at a value at least equal to the
principal amount of the repurchase agreement (including accrued
interest). FMR, the fund's investment adviser, is responsible for
determining that the value of the underlying securities remains in
accordance with the market value requirements stated above.
WHEN-ISSUED SECURITIES. The fund may purchase or sell securities on a
when-issued basis. Payment and delivery may take place a month or more
after the date of the transaction. The price of the underlying
securities is fixed at the time the transaction is negotiated. The
market values of the securities purchased on a when-issued or forward
commitment basis are identified as such in the fund's schedule of
investments. The fund may receive compensation for interest forgone in
the purchase of a when-issued security. With respect to purchase
commitments, the fund identifies securities as segregated in its
custodial records with a value at least equal to the amount of the
commitment. The payables and receivables associated with the purchases
and sales of when-issued securities having the same settlement date
and broker are offset. When-issued securities that have been purchased
from and sold to different brokers are reflected as both payables and
receivables in the statement of assets and liabilities under the
caption "Delayed delivery." Losses may arise due to changes in the
market value of the underlying securities, if the counterparty does
not perform under the contract, or if the issuer does not issue the
securities due to political, economic, or other factors.
OPTIONS. The fund may use options to manage its exposure to the bond
market and to fluctuations in interest rates and currency values.
Writing puts and buying calls tend to increase the fund's exposure to
the underlying instrument. Buying puts and writing calls tend to
decrease the fund's exposure to the underlying instrument, or hedge
other fund investments. The underlying face amount at value of any
open options at period end is shown in the schedule of investments
under the caption "Purchased Options."
2. OPERATING POLICIES - CONTINUED
OPTIONS - CONTINUED
This amount reflects each contract's exposure to the underlying
instrument at period end. Losses may arise from changes in the value
of the underlying instruments, if there is an illiquid secondary
market for the contracts, or if the counterparties do not perform
under the contracts' terms.
Exchange-traded options are valued using the last sale price or, in
the absence of a sale, the last offering price. Options traded
over-the-counter are valued using dealer-supplied valuations.
RESTRICTED SECURITIES. The fund is permitted to invest in securities
that are subject to legal or contractual restrictions on resale. These
securities generally may be resold in transactions exempt from
registration or to the public if the securities are registered.
Disposal of these securities may involve time-consuming negotiations
and expense, and prompt sale at an acceptable price may be difficult.
At the end of the period, the fund had no investments in restricted
securities (excluding 144A issues).
LOANS AND OTHER DIRECT DEBT INSTRUMENTS. The fund is permitted to
invest in loans and loan participations, trade claims or other
receivables. These investments may include standby financing
commitments that obligate the fund to supply additional cash to the
borrower on demand. Loan participations involve a risk of insolvency
of the lending bank or other financial intermediary. At the end of the
period, these investments amounted to $9,693,611 or 8.0% of net
assets.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $694,024,569 and $687,968,561, respectively, of which U.S.
government and government agency obligations aggregated $7,607,283 and
$7,577,474, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a
monthly fee that is calculated on the basis of a group fee rate plus a
fixed individual fund fee rate applied to the average net assets of
the fund. The group fee rate is the weighted average of a series of
rates and is based on the monthly average net assets of all the mutual
funds advised by FMR. The rates ranged from .1100% to .3700% for the
period. The annual individual fund fee rate is .55%. In the event
that these rates were lower than the contractual rates in effect
during the period, FMR voluntarily implemented the above rates, as
they resulted in the same or a lower management fee. For the period,
the management fee was equivalent to an annual rate of .69% of average
net assets.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
SUB-ADVISER FEE. FMR, on behalf of the fund, entered into sub-advisory
agreements with Fidelity Management & Research (U.K.) Inc., Fidelity
Management & Research (Far East) Inc., Fidelity International
Investment Advisors (FIIA), and Fidelity Investment Japan Ltd (FIJ).
In addition, FIIA entered into a sub-advisory agreement with its
subsidiary, Fidelity International Investment Advisors (U.K.) Limited
(FIIA (U.K.) L). 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 FIIA(U.K.)L 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 each class of shares (collectively referred to as "the
Plans"). Under certain of the Plans, the class pays Fidelity
Distributors Corporation (FDC), an affiliate of FMR, a distribution
and service fee. This fee is based on the following annual rates of
the average net assets of each applicable class:
CLASS A .15%

CLASS T .25%

CLASS B .90%*

CLASS C 1.00%**

* .65% REPRESENTS A DISTRIBUTION FEE AND .25% REPRESENTS A SHAREHOLDER
SERVICE FEE.
** .75% REPRESENTS A DISTRIBUTION FEE AND .25% REPRESENTS A
SHAREHOLDER SERVICE FEE.
For the period, each class paid FDC the following amounts, a portion
of which was paid to securities dealers, banks and other financial
institutions for the distribution of each class' applicable shares,
and providing shareholder support services:
PAID TO DEALERS'
FDC PORTION

CLASS A $ 1,903 $ 1,903

CLASS T 230,572 230,572

CLASS B 200,096 55,579

CLASS C 47 0

$ $
432,618 288,054

4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
DISTRIBUTION AND SERVICE PLAN - CONTINUED
Under the Plans, FMR or FDC may use its resources to pay
administrative and promotional expenses related to the sale of each
class' shares. The Plans also authorize payments to third parties that
assist in the sale of each class' shares or render shareholder support
services. For the period, the following amounts were paid to third
parties under the Plans:
CLASS A $ 1,393

CLASS T 13,689

CLASS C 54

SALES LOAD. FDC receives a front-end sales charge of up to 4.75% for
selling Class A shares (4.25% prior to August 1, 1997), and 3.50% for
selling Class T shares of the fund, respectively. FDC receives the
proceeds of contingent deferred sales charges levied on Class B share
redemptions occurring within six years of purchase (five years prior
to January 2, 1997) and Class C share redemptions occurring within one
year of purchase. Contingent deferred sales charges are based on
declining rates ranging from 5% to 1% (4% to 1% prior to January 2,
1997) for Class B and 1% for Class C, 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 the following sales charge amounts
related to each class, a portion of which is paid to securities
dealers, banks, and other financial institutions:
PAID TO DEALERS'
FDC PORTION

CLASS A $ 29,709 $ 23,247

CLASS T 142,370 111,640

CLASS B 68,657 0*

CLASS C 0 0*

$ $
240,736 134,887

* WHEN CLASS B AND CLASS C SHARES ARE INITIALLY SOLD, FDC PAYS
COMMISSIONS FROM ITS OWN RESOURCES TO DEALERS THROUGH WHICH THE SALES
ARE MADE.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT FEES. Each class of the fund has entered into a
separate transfer, dividend disbursing, and shareholder servicing
agent (collectively referred to as the Transfer Agents) contract with
respect to its shares. The Transfer Agents receive account fees and
asset-based fees that vary according to the account size and type of
account of the shareholders of the respective classes of the fund.
FIIOC pays for typesetting, printing and mailing of all shareholder
reports. For the period, the following amounts were paid to each
transfer agent:
TRANSFER AMOUNT % OF
AGENT AVERAGE
NET ASSETS

CLASS A FIIOC * $ 5,219 .41

CLASS T ** FIIOC * 240,599 .26

CLASS B FIIOC * 62,159 .28

CLASS C FIIOC * 9 .19***

INSTITUTIONAL CLASS FIIOC * 8,493 .24

$
316,479

* FIDELITY INVESTMENTS INSTITUTIONAL OPERATIONS COMPANY, INC. (FIIOC),
AN AFFILIATE OF FMR.
** PRIOR TO JANUARY 1, 1997 STATE STREET BANK AND TRUST COMPANY WAS
THE TRANSFER AGENT FOR THE FUND'S CLASS T SHARES. STATE STREET,
HOWEVER, HAD DELEGATED CERTAIN
TRANSFER, DIVIDEND DISBURSING, AND SHAREHOLDER SERVICES TO FIIOC FOR
WHICH FIIOC RECEIVED ITS ALLOCABLE SHARE OF ALL SUCH FEES.
*** ANNUALIZED
ACCOUNTING FEES. Fidelity Service Company, 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.
5. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse operating expenses (excluding
interest, taxes, brokerage commissions and extraordinary expenses)
above the following annual rates or range of annual rates of average
net assets for each of the following classes:
FMR REIMBURSEMENT
EXPENSE
LIMITATIONS

CLASS A 1.40% $ 26,261

CLASS C 2.25% 6,143

INSTITUTIONAL CLASS 1.25% 11,552

$
43,956

In addition, the fund has entered into an arrangement with its
custodian whereby credits realized as a result of uninvested cash
balances were used to reduce a portion of expenses. During the period,
the fund's custodian fees were reduced by $18,151 under the custodian
arrangement.
6. 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.
7. DISTRIBUTIONS TO SHAREHOLDERS.
Distributions to shareholders of each class were as follows:
YEARS ENDED DECEMBER 31,

1997 A 1996 B

CLASS A

FROM NET INVESTMENT INCOME $ 119,401 $ 5,916

FROM NET REALIZED GAIN 244,650 15,462

TOTAL $ $
364,051 21,378

CLASS T

FROM NET INVESTMENT INCOME $ 7,364,838 $ 3,931,995

FROM NET REALIZED GAIN 10,866,769 2,638,864

TOTAL $ $
18,231,607 6,570,859

CLASS B

FROM NET INVESTMENT INCOME $ 1,641,148 $ 844,871

FROM NET REALIZED GAIN 2,697,569 595,454

TOTAL $ $
4,338,717 1,440,325

CLASS C

FROM NET INVESTMENT INCOME $ 1,052 $ -

FROM NET REALIZED GAIN 6,680 -

TOTAL $ $
7,732 -

INSTITUTIONAL CLASS

FROM NET INVESTMENT INCOME $ 253,852 $ 136,492

FROM NET REALIZED GAIN 213,617 87,836

TOTAL $ $
467,469 224,328

$ $
23,409,576 8,256,890

A DISTRIBUTIONS FOR CLASS C ARE FOR THE PERIOD NOVEMBER 3, 1997
(COMMENCEMENT OF SALE OF SHARES) TO DECEMBER 31, 1997.
B DISTRIBUTIONS FOR CLASS A ARE FOR THE PERIOD SEPTEMBER 3, 1996
(COMMENCEMENT OF SALE OF SHARES) TO DECEMBER 31, 1996.
8. SHARE TRANSACTIONS.
Share transactions for each class of shares were as follows:

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SHARES DOLLARS

YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,

1997 A 1996 B 1997 A 1996 B

CLASS A 157,759 45,480 $ 1,980,163 $ 518,247
SHARES SOLD

REINVESTMENT OF DISTRIBUTIONS 27,924 1,560 317,016 18,190

SHARES REDEEMED (18,479) (6,248) (229,598) (75,540)

NET INCREASE (DECREASE) 167,204 40,792 $ $
2,067,581 460,897

CLASS T 5,560,853 8,120,736 $ 68,604,516 $ 85,014,110
SHARES SOLD

REINVESTMENT OF DISTRIBUTIONS 1,422,242 523,792 16,356,926 5,729,874

SHARES REDEEMED (5,324,070) (5,813,045) (65,213,725) (60,826,882)

NET INCREASE (DECREASE) 1,659,025 2,831,483 $ $
19,747,717 29,917,102

CLASS B 741,442 657,075 $ 9,189,867 $ 6,890,016
SHARES SOLD

REINVESTMENT OF DISTRIBUTIONS 323,757 116,167 3,726,061 1,270,300

SHARES REDEEMED (462,457) (282,713) (5,697,389) (2,964,969)

NET INCREASE (DECREASE) 602,742 490,529 $ $
7,218,539 5,195,347

CLASS C 5,254 - $ 65,143 $ -
SHARES SOLD

REINVESTMENT OF DISTRIBUTIONS 692 - 7,663 -

SHARES REDEEMED - - - -

NET INCREASE (DECREASE) 5,946 - $ $
72,806 -

INSTITUTIONAL CLASS 670,672 1,151,436 $ 8,055,126 $ 12,012,762
SHARES SOLD

REINVESTMENT OF DISTRIBUTIONS 36,986 19,417 437,820 214,294

SHARES REDEEMED (814,803) (966,036) (10,051,000) (10,339,289)

NET INCREASE (DECREASE) (107,145) 204,817 $ $
(1,558,054) 1,887,767

</TABLE>

A SHARE TRANSACTIONS FOR CLASS C ARE FOR THE PERIOD NOVEMBER 3, 1997
(COMMENCEMENT OF SALE OF SHARES) TO DECEMBER 31, 1997.
B SHARE TRANSACTIONS FOR CLASS A ARE FOR THE PERIOD SEPTEMBER 3, 1996
(COMMENCEMENT OF SALE OF SHARES) TO DECEMBER 31, 1996.
9. REGISTRATION FEES.
For the period, each class paid the following amounts to register its
shares for sale:
REGISTRATION
FEES

CLASS A $ 24,842

CLASS T 29,615

CLASS B 11,576

CLASS C 6,146

INSTITUTIONAL CLASS 15,049

$
87,228

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, 1997, and the related statement of operations for the
year then ended, the statement of changes in net assets for each of
the two years in the period then ended and the financial highlights of
Class A, Class T, Class B, Class C, and Institutional Class for each
of the periods indicated therein. 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, 1997 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
Emerging Markets Income Fund as of December 31, 1997, the results of
its operations for the year then ended, the changes in its net assets
for each of the two years in the period then ended, and the financial
highlights of Class A, Class T, Class B, Class C, and Institutional
Class for each of the periods indicated therein, in conformity with
generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
February 17, 1998
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 follow
ing distributions derived from capital gains realized from sales of
portfolio securities, and dividends derived from net investment
income:

CLASS A
Pay Date 2/10/97 1/2/98
Record Date 2/7/97 12/26/97
Dividends $ - $ -
Short-Term
Capital Gains $.19 $1.19
Long-Term
Capital Gains $ - $.08
Long-Term
Capital Gain Breakdown:
28% rate 100% 91.27%
20% rate -% 8.73%

CLASS B
Pay Date 2/10/97 1/2/98
Record Date 2/7/97 12/26/97
Dividends $ - $ -
Short-Term
Capital Gains $.19 $1.19
Long-Term
Capital Gains $ - $.08
Long-Term
Capital Gain Breakdown:
28% rate 100% 91.27%
20% rate -% 8.73%

CLASS T
Pay Date 2/10/97 1/2/98
Record Date 2/7/97 12/26/97
Dividends $ - $ -
Short-Term
Capital Gains $.19 $1.19
Long-Term
Capital Gains $ - $.08
Long-Term
Capital Gain Breakdown:
28% rate 100% 91.27%
20% rate -% 8.73%

CLASS C
Pay Date 1/2/98
Record Date 12/26/97
Dividends $ -
Short-Term
Capital Gains $1.19
Long-Term
Capital Gains $.08
Long-Term
Capital Gain Breakdown:
28% rate 91.27%
20% rate 8.73%

The percentage of the dividends distributed during the fiscal year for
the following classes representing income derived from sources within,
and taxes paid to, foreign countries or possessions of the United
States:
Income Foreign Tax credit
Percent Percent
Class A 36.89% 0.05%
Class T 36.88% 0.04%
Class B 36.88% 0.04%
Class C 36.90% 0.06%
The fund will notify shareholders in January 1998 of the applicable
percentage for use in preparing 1997 income tax returns.

INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
INVESTMENT SUB-ADVISER
Fidelity Management & Research
(U.K.) Inc., London, England
Fidelity Management & Research
(Far East) Inc., Tokyo, Japan
Fidelity Investments Japan Limited
Tokyo, Japan
Fidelity International Investment Advisors
Pembroke, Bermuda
Fidelity International Investment
Advisors (U.K.) Limited
London, England
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Bart A. Grenier, Vice President
John H. Carlson, Vice President
Eric D. Roiter, Secretary
Richard A. Silver, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Gary Burkhead
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
CUSTODIAN
The Chase Manhattan Bank
Brooklyn, NY
FOCUS FUNDS
Fidelity Advisor Consumer
Industries Fund
Fidelity Advisor Cyclical
Industries Fund
Fidelity Advisor Financial
Services Fund
Fidelity Advisor Health Care Fund
Fidelity Advisor Natural
Resources Fund
Fidelity Advisor Technology Fund
Fidelity Advisor Utilities Growth Fund
GROWTH FUNDS
Fidelity Advisor International Capital Appreciation Fund
Fidelity Advisor Overseas Fund
Fidelity Advisor TechnoQuant
Growth Fund
SM
Fidelity Advisor Mid Cap Fund
Fidelity Advisor Equity Growth Fund
Fidelity Advisor Growth
Opportunities Fund
Fidelity Advisor Strategic
Opportunities Fund
Fidelity Advisor Large Cap Fund
GROWTH AND INCOME FUNDS
Fidelity Advisor Growth & Income Fund
Fidelity Advisor Equity Income Fund
Fidelity Advisor Balanced Fund
TAXABLE INCOME FUNDS
Fidelity Advisor Emerging Markets Income Fund
Fidelity Advisor High Yield Fund
Fidelity Advisor Strategic Income Fund
Fidelity Advisor Mortgage
Securities Fund
Fidelity Advisor Government Investment Fund
Fidelity Advisor Intermediate Bond Fund
Fidelity Advisor Short Fixed-Income Fund
MUNICIPAL FUNDS
Fidelity Advisor Municipal Income Fund
Fidelity Advisor Intermediate Municipal Income Fund
Fidelity Advisor Short-Intermediate Municipal Income Fund
MONEY MARKET FUNDS
Prime Fund
Treasury Fund
Tax-Exempt Fund

(REGISTERED TRADEMARK)

(2_FIDELITY_LOGOS)SPARTAN(registered trademark)

(REGISTERED TRADEMARK)
GINNIE MAE
ANNUAL REPORT
AUGUST 31, 1993
CONTENTS

PRESIDENT'S MESSAGE 3 NED JOHNSON ON INVESTING STRATEGIES.

PERFORMANCE 4 HOW THE FUND HAS DONE OVER TIME.

FUND TALK 7 THE MANAGER'S REVIEW OF FUND
PERFORMANCE, STRATEGY AND OUTLOOK.

INVESTMENT CHANGES 10 A SUMMARY OF MAJOR SHIFTS IN THE FUND'S
INVESTMENTS OVER THE PAST SIX MONTHS.

INVESTMENTS 11 A COMPLETE LIST OF THE FUND'S INVESTMENTS
WITH THEIR MARKET VALUES.

FINANCIAL STATEMENTS 18 STATEMENTS OF ASSETS AND LIABILITIES,
OPERATIONS, AND CHANGES IN NET ASSETS,
AS WELL AS FINANCIAL HIGHLIGHTS.

NOTES 27 NOTES TO FINANCIAL STATEMENTS.

REPORT OF INDEPENDENT 37 THE AUDITORS' OPINION.
ACCOUNTANTS

DISTRIBUTIONS 38

FIDELITY ADV EMERGING MARKETS INCOME - INST CL 16.84% 79.77%

JP EMBI PLUS 13.02% 80.83%

EMERGING MARKETS DEBT FUNDS AVERAGE 13.80% N/A

CUMULATIVE TOTAL RETURNS show Institutional Class' performance in
percentage terms over a set period - in this case, one year or since
the fund started on March 10, 1994. For example, if you had invested
$1,000 in a fund that had a 5% return over the past year, the value of
your investment would be $1,050. You can compare Institutional Class'
returns to those of the J.P. Morgan Emerging Markets Bond Index Plus -
a market capitalization weighted total return index of U.S. dollar-
and other external currency-denominated Brady bonds, loans, Eurobonds,
and local market debt instruments traded in emerging markets. To
measure how Institutional Class' performance stacked up against its
peers, you can compare it to the emerging markets debt funds average,
which reflects the performance of mutual funds with similar objectives
tracked by Lipper Analytical Services, Inc. The past one year average
represents a peer group of 27 mutual funds. These benchmarks reflect
reinvestment of dividends and capital gains, if any, and exclude the
effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED AUGUST 31, 1993 PAST 1 LIFE OF
YEAR FUND

FIDELITY ADV EMERGING MARKETS INCOME - INST CL 16.84% 16.62%

JP EMBI PLUS 13.02% 16.80%

EMERGING MARKETS DEBT FUNDS AVERAGE 13.80% N/A

AVERAGE ANNUAL TOTAL RETURNS take Institutional Class' cumulative
return and show you what would have happened if Institutional Class
had performed at a constant rate each year. (Note: Lipper calculates
average annual total returns by annualizing each fund's total return,
then taking an arithmetic average. This may produce a slightly
different figure than that obtained by averaging the cumulative total
returns and annualizing the result.)
$10,000 OVER LIFE OF FUND
IMAHDR PRASUN SHR__CHT 19971231 19980130 120931 S00000000000001
FA Emerg Mkt Inc -CL I JP EMBI Plus
00607 JP004
1994/03/10 10000.00 10000.00
1994/03/31 9583.54 8807.82
1994/04/30 9709.65 8643.25
1994/05/31 10335.54 9282.15
1994/06/30 9835.28 8810.67
1994/07/31 10055.96 8971.50
1994/08/31 11267.52 9714.11
1994/09/30 11589.24 10014.32
1994/10/31 11290.55 9697.82
1994/11/30 11055.90 9687.51
1994/12/31 10246.94 9059.99
1995/01/31 9070.51 8623.61
1995/02/28 8422.24 8222.51
1995/03/31 8175.93 8056.78
1995/04/30 8877.85 8918.88
1995/05/31 9407.49 9695.07
1995/06/30 9460.49 9909.06
1995/07/31 9475.87 9869.98
1995/08/31 9680.80 10140.13
1995/09/30 10067.96 10536.55
1995/10/31 10006.53 10422.17
1995/11/30 10342.00 10724.86
1995/12/31 10973.18 11485.35
1996/01/31 11783.93 12358.18
1996/02/29 11129.68 11676.46
1996/03/31 11236.56 11942.44
1996/04/30 11814.51 12593.99
1996/05/31 12138.03 12811.92
1996/06/30 12405.84 13262.30
1996/07/31 12548.91 13539.46
1996/08/31 13004.74 14036.78
1996/09/30 14072.63 14942.02
1996/10/31 14437.84 15043.72
1996/11/30 15247.88 15810.38
1996/12/31 15385.48 16000.37
1997/01/31 16041.23 16442.93
1997/02/28 16314.63 16729.03
1997/03/31 15662.08 16123.30
1997/04/30 16190.90 16602.74
1997/05/31 16888.76 17247.58
1997/06/30 17414.21 17644.32
1997/07/31 18169.75 18376.34
1997/08/31 18069.89 18301.91
1997/09/30 18652.76 18861.14
1997/10/31 16799.47 16688.46
1997/11/30 17426.13 17480.82
1997/12/31 17976.50 18083.31
IMATRL PRASUN SHR__CHT 19971231 19980130 120933 R00000000000049
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Advisor Emerging Markets Income Fund -
Institutional Class on March 10, 1994, when the fund started. As the
chart shows, by December 31, 1997, the value of the investment would
have grown to $17,977 - a 79.77% increase on the initial investment.
For comparison, look at how the J.P. Morgan Emerging Markets Bond
Index Plus did over the same period. With dividends and capital gains,
if any, reinvested, the same $10,000 investment would have grown to
$18,083 - an 80.83% increase.
UNDERSTANDING
PERFORMANCE
Many markets around the globe
offer the potential for significant
growth over time; however,
investing in foreign markets means
assuming greater risks than
investing in the United States.
Factors like changes in a country's
financial markets, its local political
and economic climate, and the
fluctuating value of its currency
create these risks. For these
reasons an international fund's
performance may be more volatile
than a fund that invests exclusively
in the United States. Past
performance is no guarantee of
future results and you may have a
gain or loss when you sell your
shares.
(checkmark)

TOTAL RETURN COMPONENTS
YEARS ENDED DECEMBER 31, MARCH 10, 1994
(COMMENCEMENT
OF OPERATIONS) TO
DECEMBER 31,

1997 1996 1995 1994

DIVIDEND RETURN 8.54% 9.89% 9.61% 4.80%

CAPITAL APPRECIATION RETURN 8.30% 30.32% -2.52% -2.33%

TOTAL RETURN 16.84% 40.21% 7.09% 2.47%

TOTAL RETURN COMPONENTS include both dividend returns and capital
appreciation returns. 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 capital gains paid by the class are reinvested, if any,
and exclude the effects of sales charges.
DIVIDENDS AND YIELD
PERIODS ENDED AUGUST 31, 1993 PAST 1 PAST 6 PAST 1
MONTH MONTHS YEAR

DIVIDENDS PER SHARE 21.45(CENTS) 61.98(CENTS) 99.83(CENTS)

ANNUALIZED DIVIDEND RATE 20.98% 9.69% 8.09%

30-DAY ANNUALIZED YIELD 8.04% - -

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 $12.04 over the past one month, $12.69 over the past six
months, and $12.34 over the past one year, 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. If Fidelity had not reimbursed certain
class expenses, the yield would have been 7.65%.
FUND TALK: THE MANAGER'S OVERVIEW

An interview with John Carlson, Portfolio Manager of Fidelity Advisor
Emerging Markets Income Fund
Q. HOW DID THE FUND PERFORM, JOHN?
Q. HOW WOULD YOU CHARACTERIZE THE CLIMATE FOR EMERGING-MARKET DEBT
SECURITIES OVER THE PAST YEAR?
A. Overall, emerging-market debt had a good run through much of 1997.
From January through late October, the market enjoyed a favorable
backdrop of low interest-rate levels and continued economic reform
which resulted in a favorable credit spread environment. Credit
spreads measure the premium an investor pays for global risk. The last
quarter of the year, however, was a different story altogether.
Concerns about weakness in Southeast Asia and the resulting
late-October market declines in both Asian and U.S. equity markets,
put pressure on emerging-market investments.
Q. SOUTHEAST ASIA HAD A MAJOR COLLAPSE DURING THE PERIOD AS SEVERAL
CURRENCIES DECLINED. HOW BADLY WAS THE FUND AFFECTED?
A. The impact was minimal. The fund's exposure to Southeast Asia
historically has been limited for a number of reasons. First, there
have always been very few long-term, non-investment-grade debt
opportunities in that region. Second, the currencies of both Japan and
China had depreciated by almost 50% over the past couple of years. In
comparing the other regional currencies in Asia to both Japan and
China, it was my feeling that the smaller Asian markets were becoming
less competitive as their currencies were appreciating relative to
those in Japan and China. Finally, the historically high level of
economic growth of many of the Asian "tigers" appeared unsustainable
in light of excess global capacity and competitive pressures.
Q. DID YOU PURSUE ANY PARTICULAR STRATEGIES GIVEN THIS VOLATILITY?
A. Around late August, I perceived increased risk in the marketplace
due to some initial weakness in currency and equity markets as well as
some strong words of caution from the chairman of the U.S. Federal
Reserve Board. Despite these factors, though, volatility was
decreasing and options - which give the buyer the right, but not the
obligation, to buy or sell a security within a specified period of
time at a set price - were cheap. As a result, I bought an option
position on a Brazilian bond that worked out quite favorably. When the
market corrected dramatically in late October, the fund had at risk
only the amount that it had paid for the premium on the option. If I
hadn't had the option - and the fund owned the security itself - the
fund's losses would have been considerably higher. Owning the option
gave the fund some exposure to Brazil, which I felt was important, and
allowed the fund to participate in the early-fall rally of Brazilian
Brady bonds, which are dollar-denominated and issued by foreign
governments. When the market corrected, the option provided downside
protection.
Q. SIX MONTHS AGO, YOU WERE OPTIMISTIC ABOUT THE FUND'S EXPOSURE TO
RUSSIA. HOW DID RUSSIAN BONDS PERFORM DURING THE PERIOD?
A. At the beginning of the year, the fund was underweighted in Russian
bonds relative to the index. As fiscal reform in Russia appeared
promising, I began to raise the fund's Russian exposure in the late
spring and early summer and the bonds performed well. As economic
conditions weakened in Asia, however, I felt that Russia - being a
major emerging-market country with some remaining fiscal concerns -
would be vulnerable. I subsequently began decreasing the fund's
Russian exposure - and adding Russian options - to try to limit the
fund's downside risk. This strategy has paid off, as pressure on the
Russian bond market continued toward the close of the period.
Q. WHICH OTHER POSITIONS CONTRIBUTED POSITIVELY TO PERFORMANCE? WHICH
WERE DISAPPOINTMENTS?
A. The fund's positions in Bulgaria, Argentina and Brazil also turned
in strong performances. On a down note, I reduced the fund's positions
in Ecuador earlier in the year due to political uncertainty. However,
the bonds continued to rally.
Q. WHAT'S YOUR OUTLOOK?
A. With all that has gone on in recent months, I'm certainly
concerned. While global volatility has been alarming, one bright spot
may be that the dislocation - or re-pricing of certain emerging-market
securities downward - may present ample opportunities. Shareholders
should expect a continuation of the same disciplined investment
approach: I'll keep a close eye on risk, credit spreads and interest
rates as they relate to the portfolio.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET AND OTHER CONDITIONS.
JOHN CARLSON EXPLORES THE
"CONTAGION EFFECT":
"ALONG WITH THE SOUTHEAST ASIAN
TURMOIL WE'VE WITNESSED RECENTLY,
THE PHRASE "CONTAGION" HAS ALMOST
BECOME PART OF THE MARKET'S DAILY
LANGUAGE. CONTAGION REFERS TO BOTH
THE REAL AND PSYCHOLOGICAL EFFECTS
THAT IMPACT INVESTOR BEHAVIOR WITHIN
OR ACROSS MARKETS. THERE ARE A NUMBER
OF CATCHY PHRASES THAT DESCRIBE THIS
LINK BETWEEN MARKETS, SUCH AS `WHEN
THE U.S. ECONOMY SNEEZES, MEXICO
CATCHES A COLD.'
"ASIAN CONTAGION, BEGINNING LAST YEAR
AS A CURRENCY CRISIS IN THAILAND, IS AN
EXAMPLE. AS SPECULATION AGAINST THE
SUSTAINABILITY OF THAILAND'S CURRENCY
REGIME INCREASED, THAI AUTHORITIES
DEVALUED THE COUNTRY'S CURRENCY.
PRESSURE SPILLED OVER TO OTHER
SOUTHEAST ASIAN COUNTRIES, RESULTING
IN A WAVE OF COMPETITIVE DEVALUATIONS
IN COUNTRIES SUCH AS INDONESIA, THE
PHILIPPINES AND SINGAPORE. INVESTORS
WONDERED WHERE IT WOULD STOP, AND
THIS UNCERTAINTY HAD RAMIFICATIONS
IN BOTH BRAZIL AND RUSSIA.
"BUT THE CONTAGION WASN'T LIMITED TO
CURRENCY PRESSURES. INVESTORS
SUFFERING LOSSES IN SOUTHEAST ASIAN
MARKETS TOOK PROFITS BY SELLING EQUITY
POSITIONS IN OTHER REGIONS. THIS
COMPOUNDED THE DOWNWARD
PRESSURE ON MANY CURRENCIES,
RESULTING IN ADDITIONAL SELLING. STOCK
MARKETS IN EMERGING COUNTRIES SUCH
AS ARGENTINA SUFFERED MAJOR LOSSES,
AS DID THOSE IN HONG KONG. THE
EFFECTS OF SUCH DEVELOPMENTS WILL BE
SLOWER GLOBAL ECONOMIC GROWTH,
WHICH HAS LED TO CONCERNS ABOUT
GROWTH RATES IN THE U.S. AND OTHER
DEVELOPED COUNTRIES IN THE YEAR
AHEAD."
FUND FACTS
GOAL: A HIGH LEVEL OF CURRENT
INCOME BY INVESTING PRIMARILY
IN DEBT SECURITIES AND OTHER
INSTRUMENTS OF ISSUERS IN
EMERGING MARKETS; AS A
SECONDARY OBJECTIVE, THE FUND
MAY SEEK CAPITAL APPRECIATION
START DATE: MARCH 10, 1994
SIZE: AS OF DECEMBER 31,
1997, MORE THAN $120 MILLION
MANAGER: JOHN CARLSON, SINCE
1995; JOINED FIDELITY IN 1995
(CHECKMARK)
INVESTMENT CHANGES

TOP FIVE COUNTRIES AS OF AUGUST 31, 1993
(EXCLUDING CASH EQUIVALENTS) % OF FUND'S % OF FUND'S INVESTMENTS
INVESTMENTS IN THESE COUNTRIES
6 MONTHS AGO

BRAZIL 18.6 13.3

ARGENTINA 15.3 14.2

MEXICO 9.9 8.8

RUSSIA 6.8 9.8

VENEZUELA 5.2 10.6

TOP COUNTRIES ARE BASED UPON LOCATION OF ISSUER OF EACH SECURITY,
INCLUDING WHERE THE FUND IS EXPOSED TO POTENTIAL POLITICAL AND CREDIT
RISKS.
TOP FIVE HOLDINGS AS OF AUGUST 31, 1993

<TABLE>
<CAPTION>
<S> <C> <C>
(BY ISSUER, EXCLUDING CASH EQUIVALENTS) % OF FUND'S % OF FUND'S INVESTMENTS
INVESTMENTS IN THESE HOLDINGS
6 MONTHS AGO

BRAZILIAN FEDERATIVE REPUBLIC 18.1 11.6

ARGENTINIAN REPUBLIC 12.2 12.4

UNITED MEXICAN STATES 5.6 8.8

BULGARIAN REPUBLIC BRADY 4.8 5.4

VENEZUELAN REPUBLIC 4.7 10.6

</TABLE>

AVERAGE YEARS TO MATURITY AS OF AUGUST 31, 1993
6 MONTHS AGO

YEARS 15.3 14.4

SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENT IN SECURITIES

NONCONVERTIBLE BONDS - 8.3%
MOODY'S RATINGS (C) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (B) (NOTE 1)
ARGENTINA - 3.1%
Compania Latinoamericana de Infraestructura &
Servicios SA: 20445PAA
11 5/8%, 6/1/04 (f) BB- $ 1,450,000 $ 1,479,000 20445PAA
11 5/8%, 6/1/04 BB- 790,000 805,800 20445P9A
Telefonica De Argentina 11 7/8%, 11/1/04 Ba3 1,220,000 1,418,250
879378AC
3,703,050
KOREA (SOUTH) - 0.5%
Korea Development Bank: 500630AM 500630AM
yankee 500630AM7 1/4%, 5/15/06 Ba1 420,000 327,600 500630AM
6 5/8%, 11/21/03 Ba1 360,000 500630AN 280,800 500630AN
608,400
MEXICO - 4.2%
Banco Nacional de Comercio Exterior SNC
11 1/4%, 5/30/06 (Reg.) Ba2 3,410,000 3,802,150 0596129F
Petroleos Mexicanos 9 1/2%, 9/15/27 BB 1,180,000 1,174,100
71654QAM
4,976,250
VENEZUELA - 0.5%
Bariven SA 10 5/8%, 3/17/02 Ba2 600,000 651,000 0675939B
TOTAL NONCONVERTIBLE BONDS
(Cost $10,112,524) 9,938,700
FOREIGN GOVERNMENT OBLIGATIONS (I) - 68.8%
ANGOLA - 0.1%
Banco Nacional de Angola 0%, 9/10/27 - 539,628 161,888 06999TAA
ARGENTINA - 12.2%
Argentinian Republic: 039995AD
Brady par euro 5 1/2%, 3/31/23 (e) Ba3 11,675,000 8,559,234
039995AD 039995AW
BOCON 3.29%, 4/1/07 (h) Ba3 ARS 25,563 17,866 039995AW
global bond: 039995BS
11 3/8%, 1/30/17 Ba3 690,000 754,860 039995BS
11 3/8%, 1/30/17 Ba3 1,210,000 1,323,740 040114AR
9 3/4%, 9/19/27 Ba3 3,161,000 3,028,633 039995BR
11 3/4%, 2/12/07 Ba3 ARS 990,000 039995BP 930,777 039995BP
14,615,110
FOREIGN GOVERNMENT OBLIGATIONS (I) - CONTINUED
MOODY'S RATINGS (C) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (B) (NOTE 1)
BRAZIL - 18.1%
Brazilian Federative Republic: 1057569L
Brady: 1057569L
capitalization bond 8%, 4/15/14 B1 $ 16,579,383 $ 13,035,540
1057569L
debt conversion bond euro 1057569J
6 3/4%, 4/15/12 (h) B1 6,925,000 5,263,000 1057569J
par 5 1/4%, 4/15/24 (e) B1 1,220,000 879,162 1057569V
global bond 10 1/8%, 5/15/27 B1 2,570,000 2,409,375 10599NAB
21,587,077
BULGARIA - 4.8%
Bulgarian Republic Brady: 12099EAA
discount 6.6875%, 7/28/24 (h) B2 2,390,000 1,840,300 12099EAA
FLIRB A 2 1/4%, 7/28/12 (h) B2 6,385,000 12099EAD 3,886,869
12099EAD
5,727,169
DOMINICAN REPUBLIC - 0.8%
Dominican Republic Brady 25999TAA6.6875%, 8/30/09 (h) B1 1,267,200
983,664 25999TAA
ECUADOR - 3.8%
Ecuador Republic Brady: 88399HAW
par euro 3 1/2%, 2/28/25 (e) B1 5,395,000 2,973,994 88399HAW
past due interest euro
6.6875%, 2/28/15 (bearer) (h) B1 2,340,219 88399HBB 1,529,918
88399HBB
4,503,912
IVORY COAST - 0.3%
Ivory Coast past due interest
0%, 12/29/49 (g) - 880,000 345,400 46199SAG
JORDAN - 0.9%
Kingdom of Jordan 5%, 12/23/23 (f)(h) Ba3 1,500,000 1,020,000
240993AE
KAZAKHSTAN - 0.9%
Kazakhstan Republic 9 1/4%, 12/20/99 (Reg.) Ba3 1,120,000 1,092,000
49699KAA
MEXICO - 5.6%
Mexico Value recovery rights 6/30/03:
discount A - 1,000 59799832-
discount C - 2,000 59799834-
FOREIGN GOVERNMENT OBLIGATIONS (I) - CONTINUED
MOODY'S RATINGS (C) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (B) (NOTE 1)
MEXICO - CONTINUED
United Mexican States: 5979982B
Brady discount: 5979982B
par A 6 1/4%, 12/31/19 unit Ba2 $ 3,520,000 $ 2,934,800 5979982B
par B 6 1/4%, 12/31/19 unit Ba2 2,050,000 1,709,187 5979982C
global bond 11 1/2%, 5/15/26 Ba2 1,691,000 2,003,835 593048AX
6,647,822
PANAMA - 1.5%
Panamanian Republic: 6982999Y
Brady par 3 1/4%, 7/17/26 (e) Ba1 1,470,000 940,800 6982999Y
euro 7 7/8%, 2/13/02 (Reg.) Ba1 830,000 6982999S 801,987
6982999S
1,742,787
PERU - 3.5%
Peruvian Republic Brady FLIRB: 715638AG
3 1/4%, 3/7/17 (f)(h) B2 1,350,000 800,719 715638AG
3 1/4%, 3/7/17 (h) B2 5,720,000 3,392,675 7156389S
4,193,394
PHILIPPINES - 0.8%
Philippine Government Brady par 6 1/2%,
12/1/17 (e) Ba1 1,080,000 901,800 7182869C
POLAND - 3.4%
Polish Republic: 732996BF
Brady par 3%, 10/27/24 (e) Baa 5,240,000 3,216,050 732996BF
7 1/8%, 7/1/04 Baa 840,000 7310119A 7310119A 7310119A 840,000
7310119A
4,056,050
RUSSIA - 3.7%
Bank for Foreign Economic Affairs of Russia 928564AB
(Vnesheconombank) interest notes: 928564AB
6.7188%, 12/15/15 (f) Ba2 3,305,956 2,326,567 928564AB
6.7188%, 12/15/15 Ba2 840,000 591,150 9285649A
Russian Government 78307A9B euro 10%, 6/26/07 Ba2 1,650,000
78307A9B 1,524,187 78307A9B
4,441,904
FOREIGN GOVERNMENT OBLIGATIONS (I) - CONTINUED
MOODY'S RATINGS (C) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (B) (NOTE 1)
TURKEY - 3.7%
Turkish Republic Treasury Bill:
0%, 5/13/98 (j) - TRL 212,310 $ 725,608 9001239K
0%, 8/5/98 (j) - TRL 112,570 320,434 9001239R
0%, 8/12/98 (j) - TRL 747,500 2,095,149 9001239N
0%, 9/16/98 (j) - TRL 472,730 1,238,550 9001239Q
4,379,741
VENEZUELA - 4.7%
Venezuelan Republic: 9226469A
Brady: 9226469A
debt conversion bond
6.8125%, 9226469A12/18/07 (h) Ba2 3,095,239 2,768,304 9226469A
par A 6 3/4%, 3/31/20 unit Ba2 500,000 433,750 92299NAH
par A euro 9226469C6 3/4%, 3/31/20 Ba2 2,840,000 2,463,700
9226469C
Oil recovery rights 3/31/20 - 14,230 92264698 92264698-
5,665,754
TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost $80,015,378) 82,065,472
SOVEREIGN LOAN PARTICIPATIONS - 8.1%
CAMEROON - 0.2%
Cameroon Republic loan participation (a):
- - Societe Generale - DEM 980,000 152,572 06999LAB
- Societe Generale - FRF 1,960,000 06999LAA 91,110 06999LAA
243,682
CONGO - 0.2%
Congo Republic loan participation (a) :
- - Societe Generale - 464,670 139,401 20699EAA
- Societe Generale - DEM 255,860 42,679 20699EAE
- Societe Generale - FRF 841,728 20699EAD 41,922 20699EAD
224,002
IVORY COAST - 1.5%
Ivory Coast restructured loan (a):
- - Morgan (J.P.) Securities, Inc. - 2,750,000 1,189,375 46199SAC
- Paribas Capital Markets - 1,440,000 622,800 46199SAE
1,812,175
SOVEREIGN LOAN PARTICIPATIONS - CONTINUED
MOODY'S RATINGS (C) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (B) (NOTE 1)
MOROCCO - 4.0%
Moroccan Kingdom loan participation: 99799CAJ
- The Chase Manhattan Bank
6.6563%, 1/1/09 (h) - $ 1,560,000 $ 1,343,550 99799CAP
- ING Bank NV 6.6563%, 1/1/09 (h) - 750,000 645,938 99799CAQ
- Merrill Lynch Pierce, Fenner & Smith, Inc.
6.6563%, 1/1/09 (h) - 500,000 430,625 99799CAL
- Paribas Capital Markets 6.6563%, 1/1/09 (h) - 670,000 99799CAN
577,038 99799CAN
Series A,
- Morgan Guaranty Trust 99799CAJ
Company of New York 6.6563%, 1/1/09 (h) - 2,070,000 99799CAJ
1,782,788 99799CAJ
4,779,939
RUSSIA - 2.2%
Bank for Foreign Economic Affairs of Russia
(Vnesheconombank) loan participation:
- The Chase Manhattan Bank 6.7188%,
12/15/20 (h) - 1,730,000 1,130,250 9285649C
- ING Bank NV 6.7188%, 12/15/20 (h) - 2,430,000 1,503,563
9285649E
2,633,813
TOTAL SOVEREIGN LOAN PARTICIPATIONS
(Cost $8,863,725) 9,693,611
CASH EQUIVALENTS - 13.4%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations), in a joint
trading account at 6.40%, dated
12/31/97 due 1/2/98 $ 15,964,676 15,959,000 65899ERP
PURCHASED OPTIONS - 1.4%
EXPIRATION DATE/ UNDERLYING FACE
STRIKE PRICE AMOUNT AT VALUE
BRAZIL - 0.5%
Merril Lynch International Call Option 10575697 10575697 10575697
10575697 10575697 10575697 10575697 10575697
on $7,559,372 notional amount of 10575697 10575697 10575697
10575697 10575697 10575697 10575697 10575697
Brazilian Federative Republic Brady 10575697 10575697 10575697
10575697 10575697 10575697 10575697 10575697 Mar. 98 10575697
10575697 10575697 10575697 10575697 10575697/
10575697 10575697 10575697 10575697 10575697
10575697Capitalization bond 8%, 4/15/14 10575697 10575697 10575697
10575697 10575697 1057569772 3/4 $ 5,943,556 10575697 549,566
10575697
PURCHASED OPTIONS - CONTINUED
EXPIRATION DATE/ UNDERLYING FACE VALUE (NOTE 1)
STRIKE PRICE AMOUNT AT VALUE
RUSSIA - 0.9%
The Chase Manhattan Bank Call Option 05399H33 05399H33 05399H33
05399H33 05399H33 05399H33 05399H33 05399H33 05399H33 05399H34
05399H34on 05399H33 05399H33 05399H33 05399H33 05399H33
05399H33 05399H33 05399H33 05399H33 05399H34 05399H34
05399H33 $4,400,000 05399H33notional amount of Bank for 05399H33
05399H33 05399H33 05399H33 05399H33 05399H33 05399H33 05399H34
05399H34
05399H33 Foreign Economic Affairs of 05399H33Russia 05399H33
05399H33 05399H33 05399H33 05399H33 05399H34 05399H34
05399H33 (Vnesheconombank) 05399H33loan participation 05399H33
05399H33 05399H33 05399H34 05399H34
05399H33 restructured 05399H33 under 1997 agreement 05399H33
05399H34 05399H34 Mar. 98/
05399H33 6.7188%, 12/15/20 55 05399H34 05399H34 05399H34
05399H34 05399H34 05399H34$ 2,722,500 05399H34$ 05399H34 363,440
05399H34
05399H33Merrill Lynch International Call Option on 05399H33
$8,700,000 05399H33notional amount of Bank for 05399H33
Foreign Economic Affairs of 05399H33Russia 05399H33
(Vnesheconombank) 05399H33loan participation 05399H33
restructured 05399H33 under 1997 agreement 05399H33 Mar. 98/
6.7188%, 12/15/20 54 5/8 5,383,125 05399H33 05399H33 774,300
05399H33
1,137,740
TOTAL PURCHASED OPTIONS
(Cost $1,195,207) 1,687,306
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $116,145,834) $ 119,344,089
SECURITY TYPE ABBREVIATIONS
FLIRB - Front Loaded Interest
Reduction Bonds
CURRENCY ABBREVIATIONS
ARS - Argentine peso
FRF - French franc
DEM - German deutsche mark
TRL - Turkish lira
LEGEND
11. Non-income producing
12. Principal amount is stated in United States dollars unless
otherwise noted.
13. Standard & Poor's credit ratings are used in the absence of a
rating by Moody's Investors Service, Inc.
14. Debt obligation initially issued at zero coupon form which
converts to coupon form at a specified rate and date.
15. Debt obligation initially issued at one coupon which converts to a
higher coupon at a specified date. The rate shown is the rate at
period end.
16. 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
$5,626,286 or 4.7% of net assets.
17. Security purchased on a delayed delivery or when-issued basis (see
Note 2 of Notes to Financial Statements).
18. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
19. For foreign government obligations not 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.
20. Principal amount in millions.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total
value of investment in securities, is as follows (ratings are
unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 0.0% AAA, AA, A 0.0%
Baa 3.4% BBB 5.4%
Ba 35.7% BB 48.9%B 31.0% B 5.2%
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 Moody's or S&P amounted to 8.5%. FMR has determined that
unrated debt securities that are lower quality account for 8.5% of the
total value of investment in securities.
INCOME TAX INFORMATION
At December 31, 1997, the aggregate cost of investment securities for
income tax purposes was $118,800,140. Net unrealized appreciation
aggregated $543,949, of which $3,975,175 related to appreciated
investment securities and $3,431,226 related to depreciated investment
securities.
The fund hereby designates approximately $1,123,000 as a capital gain
dividend for the pupose of the dividend paid deduction.
The fund intends to elect to defer to its fiscal year ending December
31, 1998 approximately $1,921,000 of losses recognized during the
period November 1, 1997 to December 31, 1997.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
DECEMBER 31, 1997

265.ASSETS 266. 267.

268.INVESTMENT IN SECURITIES, AT VALUE (INCLUDING REPURCHASE 269. $ 119,344,089
AGREEMENTS OF $15,959,000) (COST $116,145,834) -
SEE ACCOMPANYING SCHEDULE

270.CASH 271. 194,664

272.RECEIVABLE FOR INVESTMENTS SOLD 273. 1,038,487
REGULAR DELIVERY

274. DELAYED DELIVERY 5,090,913

275.INTEREST RECEIVABLE 276. 1,573,821

277.PREPAID EXPENSES 278. 11,415

279. 280.TOTAL ASSETS 281. 127,253,389

282.LIABILITIES 283. 284.

285.PAYABLE FOR INVESTMENTS PURCHASED $ 1,108,160 286.
REGULAR DELIVERY

287. DELAYED DELIVERY 5,003,768 288.

289.DISTRIBUTIONS PAYABLE 434,536 290.

291.ACCRUED MANAGEMENT FEE 62,783 292.

293.DISTRIBUTION FEES PAYABLE 36,536 294.

295.OTHER PAYABLES AND ACCRUED EXPENSES 104,803 296.

297. 298.TOTAL LIABILITIES 299. 6,750,586

300.301.NET ASSETS 302. $ 120,502,803

303.NET ASSETS CONSIST OF: 304. 305.

306.PAID IN CAPITAL 307. $ 116,636,598

308.UNDISTRIBUTED NET INVESTMENT INCOME 309. 424,276

310.ACCUMULATED UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON 311. 272,315
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS

312.NET UNREALIZED APPRECIATION (DEPRECIATION) ON 313. 3,169,614
INVESTMENTS AND ASSETS AND LIABILITIES IN FOREIGN CURRENCIES

314.315.NET ASSETS 316. $ 120,502,803

</TABLE>

STATEMENT OF ASSETS AND LIABILITIES - CONTINUED
DECEMBER 31, 1997

317.CALCULATION OF MAXIMUM OFFERING PRICE 320. $11.12
318.CLASS A:
319.NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
($2,312,524 (DIVIDED BY) 207,996 SHARES)

321.MAXIMUM OFFERING PRICE PER SHARE (100/95.25 OF 322. $11.67
$11.12)

323.CLASS T: 325. $11.11
324.NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
($93,228,277 (DIVIDED BY) 8,391,971 SHARES)

326.MAXIMUM OFFERING PRICE PER SHARE (100/96.50 OF 327. $11.51
$11.11)

328.CLASS B: 330. $11.16
329.NET ASSET VALUE AND OFFERING PRICE PER SHARE
($23,575,672 (DIVIDED BY) 2,113,426 SHARES) A

331.CLASS C: 333. $11.11
332.NET ASSET VALUE, AND OFFERING PRICE PER SHARE
($66,047 (DIVIDED BY) 5,946 SHARES) A

334.INSTITUTIONAL CLASS: 336. $11.06
335.NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE
PER
SHARE ($1,320,283 (DIVIDED BY) 119,357 SHARES)

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>
YEAR ENDED DECEMBER 31, 1997

337.INVESTMENT INCOME 339. $ 10,335,858
338.INTEREST

340.LESS FOREIGN TAXES WITHHELD (143,617)

341. TOTAL INCOME 10,192,241

342.EXPENSES 343. 344.

345.MANAGEMENT FEE $ 822,554 346.

347.TRANSFER AGENT FEES 316,479 348.

349.DISTRIBUTION FEES 432,618 350.

351.ACCOUNTING FEES AND EXPENSES 91,562 352.

353.NON-INTERESTED TRUSTEES' COMPENSATION 481 354.

355.CUSTODIAN FEES AND EXPENSES 54,721 356.

357.REGISTRATION FEES 87,228 358.

359.AUDIT 68,324 360.

361.LEGAL 8,247 362.

363.REPORTS TO SHAREHOLDERS 55,754 364.

365.MISCELLANEOUS 504 366.

367. TOTAL EXPENSES BEFORE REDUCTIONS 1,938,472 368.

369. EXPENSE REDUCTIONS (62,107) 1,876,365

370.371.NET INVESTMENT INCOME 372. 8,315,876

373.REALIZED AND UNREALIZED GAIN (LOSS) 375. 376.
374.NET REALIZED GAIN (LOSS) ON:

377. INVESTMENT SECURITIES 13,132,464 378.

379. FOREIGN CURRENCY TRANSACTIONS 2,535 13,134,999

380.CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) 381. 382.
ON:

383. INVESTMENT SECURITIES (4,782,094) 384.

385. ASSETS AND LIABILITIES IN FOREIGN CURRENCIES (28,772) (4,810,866)

386.387.NET GAIN (LOSS) 388. 8,324,133

389.390.NET INCREASE (DECREASE) IN NET ASSETS RESULTING 391. $ 16,640,009
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1997 1996

392.INCREASE (DECREASE) IN NET ASSETS

393.OPERATIONS $ 8,315,876 $ 5,003,629
NET INVESTMENT INCOME

394. NET REALIZED GAIN (LOSS) 13,134,999 14,771,228

395. CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) (4,810,866) 4,852,770

396. 16,640,009 24,627,627
397.NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS

398.DISTRIBUTIONS TO SHAREHOLDERS (9,380,291) (4,919,274)
FROM NET INVESTMENT INCOME

399. FROM NET REALIZED GAIN (14,029,285) (3,337,616)

400. 401.TOTAL DISTRIBUTIONS (23,409,576) (8,256,890)

402.SHARE TRANSACTIONS - NET INCREASE (DECREASE) 27,548,589 37,461,113

403. 20,779,022 53,831,850
404.TOTAL INCREASE (DECREASE) IN NET ASSETS

405.NET ASSETS 406. 407.

408. BEGINNING OF PERIOD 99,723,781 45,891,931

409. $ 120,502,803 $ 99,723,781
END OF PERIOD (INCLUDING UNDISTRIBUTED NET INVESTMENT
INCOME OF $424,276 AND $306,279, RESPECTIVELY)

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS A
410. YEARS ENDED DECEMBER 31,

411. 1997 1996 E

<TABLE>
<CAPTION>
<S> <C> <C>
412.SELECTED PER-SHARE DATA D

413.NET ASSET VALUE, BEGINNING OF PERIOD $ 11.720 $ 10.520

414.INCOME FROM INVESTMENT OPERATIONS

415. NET INVESTMENT INCOME .953 .274

416. NET REALIZED AND UNREALIZED GAIN (LOSS) .891 1.574

417. TOTAL FROM INVESTMENT OPERATIONS 1.844 1.848

418.LESS DISTRIBUTIONS

419. FROM NET INVESTMENT INCOME (.984) (.238)

420. FROM NET REALIZED GAIN (1.460) (.410)

421. TOTAL DISTRIBUTIONS (2.444) (.648)

422.NET ASSET VALUE, END OF PERIOD $ 11.120 $ 11.720

423.TOTAL RETURN B, C 16.52% 17.71%

424.RATIOS AND SUPPLEMENTAL DATA

425.NET ASSETS, END OF PERIOD (000 OMITTED) $ 2,313 $ 478

426.RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.40% F 1.40% A, F

427.RATIO OF EXPENSES TO AVERAGE NET ASSETS AFTER EXPENSE REDUCTIONS 1.38% G 1.40% A

428.RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS 7.74% 7.31% A

429.PORTFOLIO TURNOVER RATE 660% 410%

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
430. YEARS ENDED DECEMBER 31,

431. 1997 1996 1995 1994 E

432.SELECTED PER-SHARE DATA

433.NET ASSET VALUE, $ 11.710 $ 9.280 $ 9.520 $ 10.000
BEGINNING OF PERIOD

434.INCOME FROM INVESTMENT OPERATIONS

435. NET INVESTMENT INCOME .877 D .758 D .860 .356

436. NET REALIZED AND UNREALIZED GAIN .961 2.832 (.323) (.073)
(LOSS)

437. TOTAL FROM INVESTMENT OPERATIONS 1.838 3.590 .537 .283

438.LESS DISTRIBUTIONS

439. FROM NET INVESTMENT INCOME (.978) (.750) (.777) (.503)

440. FROM NET REALIZED GAIN (1.460) (.410) - (.260)

441. TOTAL DISTRIBUTIONS (2.438) (1.160) (.777) (.763)

442.NET ASSET VALUE, END OF PERIOD $ 11.110 $ 11.710 $ 9.280 $ 9.520

443.TOTAL RETURN B, C 16.47% 40.41% 6.99% 2.47%

444.RATIOS AND SUPPLEMENTAL DATA

445.NET ASSETS, END OF PERIOD (000 $ 93,228 $ 78,861 $ 36,205 $ 30,029
OMITTED)

446.RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.47% 1.49% 1.50% F 1.50% A, F

447.RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.45% G 1.48% G 1.50% 1.50% A

AFTER EXPENSE REDUCTIONS

448.RATIO OF NET INVESTMENT INCOME TO 7.08% 7.23% 9.32% 6.60% A
AVERAGE
NET ASSETS

449.PORTFOLIO TURNOVER RATE 660% 410% 305% 354% A

</TABLE>

A ANNUALIZED
B THE TOTAL RETURNS 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 NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD MARCH 10, 1994 (COMMENCEMENT OF OPERATIONS) TO
DECEMBER 31, 1994.
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES
(SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
FINANCIAL HIGHLIGHTS - CLASS B

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
450. YEARS ENDED DECEMBER 31,

451. 1997 1996 1995 1994 E

452.SELECTED PER-SHARE DATA

453.NET ASSET VALUE, BEGINNING OF PERIOD $ 11.750 $ 9.300 $ 9.520 $ 9.700

454.INCOME FROM INVESTMENT OPERATIONS

455. NET INVESTMENT INCOME .806 D .686 D .835 .167

456. NET REALIZED AND UNREALIZED GAIN .956 2.853 (.342) .227
(LOSS)

457. TOTAL FROM INVESTMENT OPERATIONS 1.762 3.539 .493 .394

458.LESS DISTRIBUTIONS

459. FROM NET INVESTMENT INCOME (.892) (.679) (.713) (.314)

460. FROM NET REALIZED GAIN (1.460) (.410) - (.260)

461. TOTAL DISTRIBUTIONS (2.352) (1.089) (.713) (.574)

462.NET ASSET VALUE, END OF PERIOD $ 11.160 $ 11.750 $ 9.300 $ 9.520

463.TOTAL RETURN B, C 15.70% 39.61% 6.38% 3.67%

464.RATIOS AND SUPPLEMENTAL DATA

465.NET ASSETS, END OF PERIOD (000 $ 23,576 $ 17,746 $ 9,486 $ 5,034
OMITTED)

466.RATIO OF EXPENSES TO AVERAGE NET 2.15% 2.15% F 2.25% F 2.25% A, F
ASSETS

467.RATIO OF EXPENSES TO AVERAGE NET 2.13% G 2.15% 2.25% 2.25% A
ASSETS AFTER EXPENSE REDUCTIONS

468.RATIO OF NET INVESTMENT INCOME TO 6.48% 6.56% 8.48% 5.86% A
AVERAGE
NET ASSETS

469.PORTFOLIO TURNOVER RATE 660% 410% 305% 354% A

</TABLE>

A ANNUALIZED
B THE TOTAL RETURNS 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 CONTINGENT DEFERRED SALES CHARGE
AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD JUNE 30, 1994 (COMMENCEMENT OF SALE OF CLASS B
SHARES) TO DECEMBER 31, 1994.
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES
(SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
FINANCIAL HIGHLIGHTS - CLASS C
470. YEAR ENDED
DECEMBER 31,

471. 1997 E

472.SELECTED PER-SHARE DATA D

473.NET ASSET VALUE, BEGINNING OF PERIOD $ 12.190

474.INCOME FROM INVESTMENT OPERATIONS

475. NET INVESTMENT INCOME .154

476. NET REALIZED AND UNREALIZED GAIN (LOSS) .322

477. TOTAL FROM INVESTMENT OPERATIONS .476

478.LESS DISTRIBUTIONS

479. FROM NET INVESTMENT INCOME (.286)

480. FROM NET REALIZED GAIN (1.270)

481. TOTAL DISTRIBUTIONS (1.556)

482.NET ASSET VALUE, END OF PERIOD $ 11.110

483.TOTAL RETURN B, C 4.16%

484.RATIOS AND SUPPLEMENTAL DATA

485.NET ASSETS, END OF PERIOD (000 OMITTED) $ 66

486.RATIO OF EXPENSES TO AVERAGE NET ASSETS 2.25% A, F

487.RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS 9.04% A

488.PORTFOLIO TURNOVER RATE 660%

<TABLE>
<CAPTION>
<S> <C> <C> <C>
489. YEARS ENDED DECEMBER 31,

490. 1997 1996 1995 E

491.SELECTED PER-SHARE DATA

492.NET ASSET VALUE, BEGINNING OF PERIOD $ 11.650 $ 9.280 $ 8.400

493.INCOME FROM INVESTMENT OPERATIONS

494. NET INVESTMENT INCOME .860 D .786 D .393

495. NET REALIZED AND UNREALIZED GAIN (LOSS) 1.008 2.779 .876

496. TOTAL FROM INVESTMENT OPERATIONS 1.868 3.565 1.269

497.LESS DISTRIBUTIONS

498. FROM NET INVESTMENT INCOME (.998) (.785) (.389)

499. FROM NET REALIZED GAIN (1.460) (.410) -

500. TOTAL DISTRIBUTIONS (2.458) (1.195) (.389)

501.NET ASSET VALUE, END OF PERIOD $ 11.060 $ 11.650 $ 9.280

502.TOTAL RETURN B, C 16.84% 40.21% 15.52%

503.RATIOS AND SUPPLEMENTAL DATA

504.NET ASSETS, END OF PERIOD (000 OMITTED) $ 1,320 $ 2,639 $ 201

505.RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.25% F 1.25% F 1.25% A, F

506.RATIO OF EXPENSES TO AVERAGE NET ASSETS AFTER 1.23% G 1.25% 1.25% A
EXPENSE REDUCTIONS

507.RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS 6.85% 7.46% 9.09% A

508.PORTFOLIO TURNOVER RATE 660% 410% 305% A

</TABLE>

CLASS T .25%

CLASS B .90%*

CLASS C 1.00%**

CLASS A $ 1,903 $ 1,903

CLASS T 230,572 230,572

CLASS B 200,096 55,579

CLASS C 47 0

$ $
432,618 288,054

CLASS T 13,689

CLASS C 54

CLASS A $ 29,709 $ 23,247

CLASS T 142,370 111,640

CLASS B 68,657 0*

CLASS C 0 0*

$ $
240,736 134,887

CLASS A FIIOC * $ 5,219 .41

CLASS T ** FIIOC * 240,599 .26

CLASS B FIIOC * 62,159 .28

CLASS C FIIOC * 9 .19***

INSTITUTIONAL CLASS FIIOC * 8,493 .24

$
316,479

CLASS A 1.40% $ 26,261

CLASS C 2.25% 6,143

INSTITUTIONAL CLASS 1.25% 11,552

$
43,956

1997 A 1996 B

CLASS A

FROM NET INVESTMENT INCOME $ 119,401 $ 5,916

FROM NET REALIZED GAIN 244,650 15,462

TOTAL $ $
364,051 21,378

CLASS T

FROM NET INVESTMENT INCOME $ 7,364,838 $ 3,931,995

FROM NET REALIZED GAIN 10,866,769 2,638,864

TOTAL $ $
18,231,607 6,570,859

CLASS B

FROM NET INVESTMENT INCOME $ 1,641,148 $ 844,871

FROM NET REALIZED GAIN 2,697,569 595,454

TOTAL $ $
4,338,717 1,440,325

CLASS C

FROM NET INVESTMENT INCOME $ 1,052 $ -

FROM NET REALIZED GAIN 6,680 -

TOTAL $ $
7,732 -

INSTITUTIONAL CLASS

FROM NET INVESTMENT INCOME $ 253,852 $ 136,492

FROM NET REALIZED GAIN 213,617 87,836

TOTAL $ $
467,469 224,328

$ $
23,409,576 8,256,890

C DISTRIBUTIONS FOR CLASS C ARE FOR THE PERIOD NOVEMBER 3, 1997
(COMMENCEMENT OF SALE OF SHARES) TO DECEMBER 31, 1997.
D DISTRIBUTIONS FOR CLASS A ARE FOR THE PERIOD SEPTEMBER 3, 1996
(COMMENCEMENT OF SALE OF SHARES) TO DECEMBER 31, 1996.
8. SHARE TRANSACTIONS.
Share transactions for each class of shares were as follows:

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SHARES DOLLARS

YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,

1997 A 1996 B 1997 A 1996 B

CLASS A 157,759 45,480 $ 1,980,163 $ 518,247
SHARES SOLD

REINVESTMENT OF DISTRIBUTIONS 27,924 1,560 317,016 18,190

SHARES REDEEMED (18,479) (6,248) (229,598) (75,540)

NET INCREASE (DECREASE) 167,204 40,792 $ $
2,067,581 460,897

CLASS T 5,560,853 8,120,736 $ 68,604,516 $ 85,014,110
SHARES SOLD

REINVESTMENT OF DISTRIBUTIONS 1,422,242 523,792 16,356,926 5,729,874

SHARES REDEEMED (5,324,070) (5,813,045) (65,213,725) (60,826,882)

NET INCREASE (DECREASE) 1,659,025 2,831,483 $ $
19,747,717 29,917,102

CLASS B 741,442 657,075 $ 9,189,867 $ 6,890,016
SHARES SOLD

REINVESTMENT OF DISTRIBUTIONS 323,757 116,167 3,726,061 1,270,300

SHARES REDEEMED (462,457) (282,713) (5,697,389) (2,964,969)

NET INCREASE (DECREASE) 602,742 490,529 $ $
7,218,539 5,195,347

CLASS C 5,254 - $ 65,143 $ -
SHARES SOLD

REINVESTMENT OF DISTRIBUTIONS 692 - 7,663 -

SHARES REDEEMED - - - -

NET INCREASE (DECREASE) 5,946 - $ $
72,806 -

INSTITUTIONAL CLASS 670,672 1,151,436 $ 8,055,126 $ 12,012,762
SHARES SOLD

REINVESTMENT OF DISTRIBUTIONS 36,986 19,417 437,820 214,294

SHARES REDEEMED (814,803) (966,036) (10,051,000) (10,339,289)

NET INCREASE (DECREASE) (107,145) 204,817 $ $
(1,558,054) 1,887,767

</TABLE>

CLASS A $ 24,842

CLASS T 29,615

CLASS B 11,576

CLASS C 6,146

INSTITUTIONAL CLASS 15,049

$
87,228

REPORT OF INDEPENDENT ACCOUNTANTS

The Board of Trustees of Fidelity Advisor Emerging Markets Income Fund
Institutional Class 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 2/10/97 1/2/98
Record Date 2/7/97 12/26/97
Dividends $ - $ -
Short-Term
Capital Gains $.19 $1.19
Long-Term
Capital Gains $ - $ .08
Long-Term
Capital Gain Breakdown:
28% rate 100% 91.27%
20% rate -% 8.73%

The percentage of dividends distributed during the fiscal year for the
Institutional Class representing income derived from sources within,
and taxes paid to, foreign countries or possessions of the United
States are 36.86% and 0.02%, respectively.
The fund will notify shareholders in January 1998 of the applicable
percentage for use in preparing 1997 income tax returns.
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
INVESTMENT SUB-ADVISER
Fidelity Management & Research
(U.K.) Inc., London, England
Fidelity Management & Research
(Far East) Inc., Tokyo, Japan
Fidelity Investments Japan Limited
Tokyo, Japan
Fidelity International Investment Advisors
Pembroke, Bermuda
Fidelity International Investment
Advisors (U.K.) Limited
London, England
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Bart A. Grenier, Vice President
John H. Carlson, Vice President
Eric D. Roiter, Secretary
Richard A. Silver, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Gary Burkhead
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
CUSTODIAN
The Chase Manhattan Bank
Brooklyn, NY
FOCUS FUNDS
Fidelity Advisor Consumer
Industries Fund
Fidelity Advisor Cyclical
Industries Fund
Fidelity Advisor Financial
Services Fund
Fidelity Advisor Health Care Fund
Fidelity Advisor Natural
Resources Fund
Fidelity Advisor Technology Fund
Fidelity Advisor Utilities Growth Fund
GROWTH FUNDS
Fidelity Advisor International Capital Appreciation Fund
Fidelity Advisor Overseas Fund
Fidelity Advisor TechnoQuant
Growth Fund
SM
Fidelity Advisor Mid Cap Fund
Fidelity Advisor Equity Growth Fund
Fidelity Advisor Growth
Opportunities Fund
Fidelity Advisor Strategic
Opportunities Fund
Fidelity Advisor Large Cap Fund
GROWTH AND INCOME FUNDS
Fidelity Advisor Growth & Income Fund
Fidelity Advisor Equity Income Fund
Fidelity Advisor Balanced Fund
TAXABLE INCOME FUNDS
Fidelity Advisor Emerging Markets Income Fund
Fidelity Advisor High Yield Fund
Fidelity Advisor Strategic Income Fund
Fidelity Advisor Mortgage
Securities Fund
Fidelity Advisor Government Investment Fund
Fidelity Advisor Intermediate Bond Fund
Fidelity Advisor Short Fixed-Income Fund
MUNICIPAL FUNDS
Fidelity Advisor Municipal Income Fund
Fidelity Advisor Intermediate Municipal Income Fund
Fidelity Advisor Short-Intermediate Municipal Income Fund
MONEY MARKET FUNDS
Prime Fund
Treasury Fund
Tax-Exempt Fund

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