FIDELITY ADVISOR SERIES VIII, N-30D, 1998-06-19

FIDELITY ADVISOR SERIES VIII
N-30D, 1998-06-19

Previous: HAMERSLY WAYNE M, SC 13D, 1998-06-19

Next: OSI PHARMACEUTICALS INC, SC 13G, 1998-06-19

(2_FIDELITY_LOGOS)FIDELITY ADVISOR

(REGISTERED TRADEMARK)
OVERSEAS
FUND - CLASS A, CLASS T, CLASS B AND CLASS C
SEMIANNUAL REPORT
APRIL 30, 1998
CONTENTS

PRESIDENT'S MESSAGE 3 NED JOHNSON ON INVESTING STRATEGIES.

PERFORMANCE 4 HOW THE FUND HAS DONE OVER TIME.

FUND TALK 12 THE MANAGER'S REVIEW OF FUND
PERFORMANCE, STRATEGY AND OUTLOOK.

INVESTMENT CHANGES 16 A SUMMARY OF MAJOR SHIFTS IN THE FUND'S
INVESTMENTS OVER THE PAST SIX MONTHS.

INVESTMENTS 17 A COMPLETE LIST OF THE FUND'S INVESTMENTS
WITH THEIR MARKET VALUES.

FINANCIAL STATEMENTS 31 STATEMENTS OF ASSETS AND LIABILITIES,
OPERATIONS, AND CHANGES IN NET ASSETS,
AS WELL AS FINANCIAL HIGHLIGHTS.

NOTES 40 NOTES TO THE FINANCIAL STATEMENTS.

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE
SUBMITTED FOR THE GENERAL INFORMATION
OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS
IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED
BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC,
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT
INVESTED.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY 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:
Low interest rates and subdued inflation were two main factors that
bolstered stock and bond markets in the U.S. during the first four
months of 1998. The stock market continued to soar to record heights
as corporate earnings proved to be stronger than expected and
investors shrugged off concerns about the effects of economic
difficulties in Asia. The Federal Reserve Board continued its steady
interest rate policy, which boosted the performance of bonds.
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.
First, investors are encouraged to take a long-term view of their
portfolios. If you can afford to leave your money invested through the
inevitable up and down cycles of the financial markets, you will
greatly reduce your vulnerability to any single decline. We know from
experience, for example, that stock prices have gone up over longer
periods of time, have significantly outperformed other types of
investments and have stayed ahead of inflation.
Second, you can further manage your investing risk through
diversification. A stock mutual fund, for instance, is already
diversified, because it invests in many different companies. You can
increase your diversification further by investing in a number of
different stock funds, or in such other investment categories as
bonds. If you have a short investment time horizon, you might want to
consider moving some of your investment into a money market fund,
which seeks income and a stable share price by investing in
high-quality, short-term investments. 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
FIDELITY ADVISOR OVERSEAS FUND - CLASS A
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). The initial offering of Class A shares took place on September
3, 1996. Class A shares bear a 0.25% 12b-1 fee. Returns prior to
September 3, 1996 are those of Class T, the original class of the
fund, and reflect Class T's 0.50% 12b-1 fee (0.65% prior to January 1,
1996). If Fidelity had not reimbursed certain class expenses, the
total returns would have been lower. Prior to December 1, 1992,
Fidelity Advisor Overseas Fund operated under a different investment
objective. Accordingly, the fund's historical performance may not
represent its current investment policies.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED APRIL 30, 1998 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

FIDELITY ADV OVERSEAS - CL A 17.45% 25.16% 87.08% 120.81%

FIDELITY ADV OVERSEAS - CL A 10.70% 17.96% 76.32% 108.11%
(INCL. MAX. 5.75% SALES CHARGE)

MSCI EAFE 15.56% 19.17% 62.18% 85.90%

INTERNATIONAL FUNDS AVERAGE 16.25% 20.89% 80.98% N/A

CUMULATIVE TOTAL RETURNS show Class A's performance in percentage
terms over a set period - in this case, six months, one year, five
years or since the fund started on April 23, 1990. 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 the performance of the Morgan Stanley Capital
International Europe, Australasia, Far East Index (MSCI EAFE Index) -
a market capitalization weighted, unmanaged index of over 1,000
foreign stocks. To measure how Class A's performance stacked up
against its peers, you can compare it to the international funds
average, which reflects the performance of mutual funds with similar
objectives tracked by Lipper Analytical Services, Inc. The past six
months average represents a peer group of 503 mutual funds. These
benchmarks include reinvested dividends and capital gains, if any, and
exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED APRIL 30, 1998 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

FIDELITY ADV OVERSEAS - CL A 25.16% 13.35% 10.37%

FIDELITY ADV OVERSEAS - CL A 17.96% 12.01% 9.56%
(INCL. MAX. 5.75% SALES CHARGE)

MSCI EAFE 19.17% 10.15% 8.03%

INTERNATIONAL FUNDS AVERAGE 20.89% 12.41% N/A

AVERAGE ANNUAL TOTAL RETURNS take Class A shares' 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
FA Overseas -CL A MS EAFE Index (Net)
00252 MS001
1990/04/23 9425.00 10000.00
1990/04/30 9321.33 9870.12
1990/05/31 9726.60 10996.32
1990/06/30 10216.70 10899.46
1990/07/31 10819.90 11052.99
1990/08/31 9528.68 9979.65
1990/09/30 8718.13 8588.84
1990/10/31 9000.88 9927.15
1990/11/30 9010.30 9341.56
1990/12/31 8922.92 9492.89
1991/01/31 9141.47 9799.94
1991/02/28 9550.08 10850.48
1991/03/31 9017.94 10199.10
1991/04/30 9008.44 10299.26
1991/05/31 9017.94 10406.73
1991/06/30 8343.26 9642.03
1991/07/31 8818.39 10115.76
1991/08/31 8951.42 9910.33
1991/09/30 9417.05 10468.87
1991/10/31 9293.52 10617.27
1991/11/30 9055.95 10121.61
1991/12/31 9527.78 10644.32
1992/01/31 9556.71 10416.96
1992/02/29 9778.51 10044.12
1992/03/31 9479.56 9381.04
1992/04/30 9971.38 9425.64
1992/05/31 10376.41 10056.55
1992/06/30 10212.47 9579.54
1992/07/31 9817.08 9334.37
1992/08/31 9547.06 9919.83
1992/09/30 9402.41 9723.94
1992/10/31 8746.65 9213.87
1992/11/30 8630.93 9300.58
1992/12/31 9067.23 9348.68
1993/01/31 9525.46 9347.54
1993/02/28 9730.21 9629.89
1993/03/31 10324.94 10469.29
1993/04/30 11124.41 11462.85
1993/05/31 11416.91 11704.95
1993/06/30 11104.92 11522.33
1993/07/31 11650.90 11925.66
1993/08/31 12421.13 12569.45
1993/09/30 12294.38 12286.52
1993/10/31 12606.37 12665.16
1993/11/30 12118.88 11558.09
1993/12/31 12860.60 12392.67
1994/01/31 13710.16 13440.41
1994/02/28 13524.62 13403.18
1994/03/31 13182.85 12825.89
1994/04/30 13749.22 13370.08
1994/05/31 13495.33 13293.32
1994/06/30 13387.91 13481.18
1994/07/31 13729.69 13610.83
1994/08/31 13856.64 13933.07
1994/09/30 13426.97 13494.24
1994/10/31 13729.69 13943.59
1994/11/30 13192.61 13273.46
1994/12/31 13115.01 13356.58
1995/01/31 12573.88 12843.48
1995/02/28 12603.39 12806.62
1995/03/31 12996.94 13605.38
1995/04/30 13380.65 14117.06
1995/05/31 13528.23 13948.78
1995/06/30 13626.62 13704.16
1995/07/31 14216.94 14557.33
1995/08/31 13803.72 14002.02
1995/09/30 13970.98 14275.48
1995/10/31 13695.49 13891.75
1995/11/30 13823.39 14278.28
1995/12/31 14248.20 14853.55
1996/01/31 14505.82 14914.53
1996/02/29 14535.54 14964.95
1996/03/31 14743.62 15282.75
1996/04/30 15130.04 15727.07
1996/05/31 15130.04 15437.66
1996/06/30 15239.03 15524.55
1996/07/31 14793.16 15070.80
1996/08/31 14892.24 15103.83
1996/09/30 15308.39 15505.07
1996/10/31 15149.86 15346.41
1996/11/30 15932.62 15957.02
1996/12/31 16008.37 15751.75
1997/01/31 16008.37 15203.59
1997/02/28 16365.04 15455.97
1997/03/31 16501.42 15514.70
1997/04/30 16627.30 15600.03
1997/05/31 17665.85 16618.24
1997/06/30 18589.01 17537.23
1997/07/31 19218.43 17823.44
1997/08/31 17770.76 16494.71
1997/09/30 19082.06 17421.22
1997/10/31 17718.30 16086.58
1997/11/30 17655.36 15925.71
1997/12/31 17792.98 16067.61
1998/01/31 18367.31 16805.43
1998/02/28 19392.09 17886.86
1998/03/31 20259.22 18441.00
1998/04/30 20811.02 18590.00
IMATRL PRASUN SHR__CHT 19980430 19980507 151341 R00000000000100
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Advisor Overseas Fund - Class A on April 23,
1990, when the fund started, and the current 5.75% sales charge was
paid. As the chart shows, by April 30, 1998, the value of the
investment would have grown to $20,811 - a 108.11% increase on the
initial investment. For comparison, look at how the MSCI EAFE Index
did over the same period. With dividends reinvested, the same $10,000
would have grown to $18,590 - a 85.90% increase.
UNDERSTANDING
PERFORMANCE
Many markets around the globe
offer the potential for significant
growth over time; however,
investing in foreign markets
means assuming greater risks
than investing in the United
States. Factors like changes in
a country's financial markets,
its local political and economic
climate, and the fluctuating value
of its currency create these risks.
For these reasons an
international fund's performance
may be more volatile than a
fund that invests exclusively in
the United States. Past
performance is no guarantee of
future results and you may have
a gain or loss when you sell
your shares.
(checkmark)
FIDELITY ADVISOR OVERSEAS FUND - CLASS T
PERFORMANCE: THE BOTTOM LINE

FIDELITY ADV OVERSEAS - CL T 17.33% 25.12% 87.18% 120.93%

FIDELITY ADV OVERSEAS - CL T 13.22% 20.74% 80.63% 113.20%
(INCL. MAX. 3.50% SALES CHARGE)

MSCI EAFE 15.56% 19.17% 62.18% 85.90%

INTERNATIONAL FUNDS AVERAGE 16.25% 20.89% 80.98% N/A

CUMULATIVE TOTAL RETURNS show Class T's performance in percentage
terms over a set period - in this case, six months, one year, five
years or since the fund started on April 23, 1990. 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 the performance of the Morgan Stanley Capital
International Europe, Australasia, Far East Index (MSCI EAFE Index) -
a market capitalization weighted, unmanaged index of over 1,000
foreign stocks. To measure how Class T's performance stacked up
against its peers, you can compare it to the international funds
average, which reflects the performance of mutual funds with similar
objectives tracked by Lipper Analytical Services, Inc. The past six
months average represents a peer group of 503 mutual funds. These
benchmarks include reinvested dividends and capital gains, if any, and
exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED APRIL 30, 1998 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

FIDELITY ADV OVERSEAS - CL T 25.12% 13.36% 10.38%

FIDELITY ADV OVERSEAS - CL T 20.74% 12.55% 9.89%
(INCL. MAX. 3.50% SALES CHARGE)

MSCI EAFE 19.17% 10.15% 8.03%

INTERNATIONAL FUNDS AVERAGE 20.89% 12.41% N/A

AVERAGE ANNUAL TOTAL RETURNS take Class T shares' cumulative return
and show you what would have happened if Class T shares had performed
at a constant rate each year.
$10,000 OVER LIFE OF FUND
FA Overseas -CL T MS EAFE Index (Net)
00175 MS001
1990/04/23 9650.00 10000.00
1990/04/30 9543.85 9870.12
1990/05/31 9958.80 10996.32
1990/06/30 10460.60 10899.46
1990/07/31 11078.20 11052.99
1990/08/31 9756.15 9979.65
1990/09/30 8926.25 8588.84
1990/10/31 9215.75 9927.15
1990/11/30 9225.40 9341.56
1990/12/31 9135.93 9492.89
1991/01/31 9359.71 9799.94
1991/02/28 9778.07 10850.48
1991/03/31 9233.22 10199.10
1991/04/30 9223.49 10299.26
1991/05/31 9233.22 10406.73
1991/06/30 8542.43 9642.03
1991/07/31 9028.91 10115.76
1991/08/31 9165.12 9910.33
1991/09/30 9641.86 10468.87
1991/10/31 9515.38 10617.27
1991/11/30 9272.14 10121.61
1991/12/31 9755.23 10644.32
1992/01/31 9784.85 10416.96
1992/02/29 10011.95 10044.12
1992/03/31 9705.86 9381.04
1992/04/30 10209.42 9425.64
1992/05/31 10624.12 10056.55
1992/06/30 10456.27 9579.54
1992/07/31 10051.44 9334.37
1992/08/31 9774.98 9919.83
1992/09/30 9626.87 9723.94
1992/10/31 8955.46 9213.87
1992/11/30 8836.98 9300.58
1992/12/31 9283.69 9348.68
1993/01/31 9752.86 9347.54
1993/02/28 9962.49 9629.89
1993/03/31 10571.42 10469.29
1993/04/30 11389.98 11462.85
1993/05/31 11689.46 11704.95
1993/06/30 11370.02 11522.33
1993/07/31 11929.04 11925.66
1993/08/31 12717.65 12569.45
1993/09/30 12587.88 12286.52
1993/10/31 12907.32 12665.16
1993/11/30 12408.19 11558.09
1993/12/31 13167.62 12392.67
1994/01/31 14037.46 13440.41
1994/02/28 13847.49 13403.18
1994/03/31 13497.56 12825.89
1994/04/30 14077.45 13370.08
1994/05/31 13817.50 13293.32
1994/06/30 13707.52 13481.18
1994/07/31 14057.46 13610.83
1994/08/31 14187.43 13933.07
1994/09/30 13747.51 13494.24
1994/10/31 14057.46 13943.59
1994/11/30 13507.56 13273.46
1994/12/31 13428.10 13356.58
1995/01/31 12874.05 12843.48
1995/02/28 12904.27 12806.62
1995/03/31 13307.21 13605.38
1995/04/30 13700.08 14117.06
1995/05/31 13851.19 13948.78
1995/06/30 13951.92 13704.16
1995/07/31 14556.34 14557.33
1995/08/31 14133.25 14002.02
1995/09/30 14304.50 14275.48
1995/10/31 14022.44 13891.75
1995/11/30 14153.40 14278.28
1995/12/31 14588.34 14853.55
1996/01/31 14852.11 14914.53
1996/02/29 14882.54 14964.95
1996/03/31 15095.59 15282.75
1996/04/30 15491.24 15727.07
1996/05/31 15491.24 15437.66
1996/06/30 15602.83 15524.55
1996/07/31 15146.31 15070.80
1996/08/31 15247.76 15103.83
1996/09/30 15683.99 15505.07
1996/10/31 15521.67 15346.41
1996/11/30 16323.12 15957.02
1996/12/31 16398.87 15751.75
1997/01/31 16398.87 15203.59
1997/02/28 16772.54 15455.97
1997/03/31 16911.33 15514.70
1997/04/30 17039.45 15600.03
1997/05/31 18107.08 16618.24
1997/06/30 19057.28 17537.23
1997/07/31 19708.54 17823.44
1997/08/31 18224.52 16494.71
1997/09/30 19559.07 17421.22
1997/10/31 18171.14 16086.58
1997/11/30 18107.08 15925.71
1997/12/31 18248.38 16067.61
1998/01/31 18819.35 16805.43
1998/02/28 19869.95 17886.86
1998/03/31 20760.67 18441.00
1998/04/30 21320.23 18590.00
IMATRL PRASUN SHR__CHT 19980430 19980507 151526 R00000000000100
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Advisor Overseas Fund - Class T on April 23,
1990, when the fund started, and the current 3.50% sales charge was
paid. As the chart shows, by April 30, 1998, the value of the
investment would have grown to $21,320 - a 113.20% increase on the
initial investment. For comparison, look at how the MSCI EAFE Index
did over the same period. With dividends reinvested, the same $10,000
investment would have grown to $18,590 - a 85.90% increase.
UNDERSTANDING
PERFORMANCE
Many markets around the globe
offer the potential for significant
growth over time; however,
investing in foreign markets
means assuming greater risks
than investing in the United
States. Factors like changes in
a country's financial markets,
its local political and economic
climate, and the fluctuating value
of its currency create these risks.
For these reasons an
international fund's performance
may be more volatile than a
fund that invests exclusively in
the United States. Past
performance is no guarantee of
future results and you may have
a gain or loss when you sell
your shares.
(checkmark)
FIDELITY ADVISOR OVERSEAS 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). The initial offering of Class B shares took place on July 3,
1995. Class B shares bear a 1.00% 12b-1 fee. Returns prior to July 3,
1995 are those of Class T, the original class of the fund, and reflect
Class T's prior 0.65% 12b-1 fee. Had Class B's 12b-1 fee been
reflected, returns prior to July 3, 1995 would have been lower. Class
B's contingent deferred sales charges included in the past six months,
past one year, past five years and life of fund total return figures
are 5%, 5%, 2% and 0%, respectively. If Fidelity had not reimbursed
certain class expenses, the total returns would have been lower. Prior
to December 1, 1992, Fidelity Advisor Overseas Fund operated under a
different investment objective. Accordingly, the fund's historical
performance may not represent its current investment policies.
CUMULATIVE TOTAL RETURNS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PERIODS ENDED APRIL 30, 1998 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

FIDELITY ADV OVERSEAS - CL B 16.97% 24.34% 83.95% 117.12%

FIDELITY ADV OVERSEAS - CL B 11.97% 19.34% 81.95% 117.12%
(INCL. CONTINGENT DEFERRED SALES CHARGE)

MSCI EAFE 15.56% 19.17% 62.18% 85.90%

INTERNATIONAL FUNDS AVERAGE 16.25% 20.89% 80.98% N/A

</TABLE>

CUMULATIVE TOTAL RETURNS show Class B's performance in percentage
terms over a set period - in this case, six months, one year, five
years or since the fund started on April 23, 1990. 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 the performance of the Morgan Stanley Capital
International Europe, Australasia, Far East Index (MSCI EAFE Index) -
a market capitalization weighted, unmanaged index of over 1,000
foreign stocks. To measure how Class B's performance stacked up
against its peers, you can compare it to the international funds
average, which reflects the performance of mutual funds with similar
objectives tracked by Lipper Analytical Services, Inc. The past six
months average represents a peer group of 503 mutual funds. These
benchmarks include reinvested dividends and capital gains, if any, and
exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED APRIL 30, 1998 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

FIDELITY ADV OVERSEAS - CL B 24.34% 12.96% 10.14%

FIDELITY ADV OVERSEAS - CL B 19.34% 12.72% 10.14%
(INCL. CONTINGENT DEFERRED SALES CHARGE)

MSCI EAFE 19.17% 10.15% 8.03%

INTERNATIONAL FUNDS AVERAGE 20.89% 12.41% N/A

AVERAGE ANNUAL TOTAL RETURNS take Class B shares' cumulative return
and show you what would have happened if Class B shares had performed
at a constant rate each year.
$10,000 OVER LIFE OF FUND
FA Overseas -CL B MS EAFE Index (Net)
00654 MS001
1990/04/23 10000.00 10000.00
1990/04/30 9890.00 9870.12
1990/05/31 10320.00 10996.32
1990/06/30 10840.00 10899.46
1990/07/31 11480.00 11052.99
1990/08/31 10110.00 9979.65
1990/09/30 9250.00 8588.84
1990/10/31 9550.00 9927.15
1990/11/30 9560.00 9341.56
1990/12/31 9467.28 9492.89
1991/01/31 9699.18 9799.94
1991/02/28 10132.72 10850.48
1991/03/31 9568.11 10199.10
1991/04/30 9558.02 10299.26
1991/05/31 9568.11 10406.73
1991/06/30 8852.26 9642.03
1991/07/31 9356.38 10115.76
1991/08/31 9497.53 9910.33
1991/09/30 9991.56 10468.87
1991/10/31 9860.49 10617.27
1991/11/30 9608.44 10121.61
1991/12/31 10109.05 10644.32
1992/01/31 10139.74 10416.96
1992/02/29 10375.08 10044.12
1992/03/31 10057.89 9381.04
1992/04/30 10579.71 9425.64
1992/05/31 11009.45 10056.55
1992/06/30 10835.51 9579.54
1992/07/31 10416.00 9334.37
1992/08/31 10129.51 9919.83
1992/09/30 9976.03 9723.94
1992/10/31 9280.27 9213.87
1992/11/30 9157.49 9300.58
1992/12/31 9620.40 9348.68
1993/01/31 10106.59 9347.54
1993/02/28 10323.83 9629.89
1993/03/31 10954.84 10469.29
1993/04/30 11803.09 11462.85
1993/05/31 12113.43 11704.95
1993/06/30 11782.40 11522.33
1993/07/31 12361.70 11925.66
1993/08/31 13178.91 12569.45
1993/09/30 13044.43 12286.52
1993/10/31 13375.46 12665.16
1993/11/30 12858.23 11558.09
1993/12/31 13645.20 12392.67
1994/01/31 14546.59 13440.41
1994/02/28 14349.73 13403.18
1994/03/31 13987.11 12825.89
1994/04/30 14588.03 13370.08
1994/05/31 14318.65 13293.32
1994/06/30 14204.68 13481.18
1994/07/31 14567.31 13610.83
1994/08/31 14702.00 13933.07
1994/09/30 14246.13 13494.24
1994/10/31 14567.31 13943.59
1994/11/30 13997.47 13273.46
1994/12/31 13915.13 13356.58
1995/01/31 13340.98 12843.48
1995/02/28 13372.30 12806.62
1995/03/31 13789.86 13605.38
1995/04/30 14196.98 14117.06
1995/05/31 14353.56 13948.78
1995/06/30 14457.95 13704.16
1995/07/31 15084.29 14557.33
1995/08/31 14645.85 14002.02
1995/09/30 14823.32 14275.48
1995/10/31 14531.03 13891.75
1995/11/30 14666.73 14278.28
1995/12/31 15108.74 14853.55
1996/01/31 15373.43 14914.53
1996/02/29 15384.02 14964.95
1996/03/31 15585.19 15282.75
1996/04/30 15987.52 15727.07
1996/05/31 15966.35 15437.66
1996/06/30 16072.23 15524.55
1996/07/31 15595.78 15070.80
1996/08/31 15691.07 15103.83
1996/09/30 16125.16 15505.07
1996/10/31 15945.17 15346.41
1996/11/30 16771.02 15957.02
1996/12/31 16838.38 15751.75
1997/01/31 16838.38 15203.59
1997/02/28 17205.39 15455.97
1997/03/31 17338.86 15514.70
1997/04/30 17461.20 15600.03
1997/05/31 18540.01 16618.24
1997/06/30 19507.60 17537.23
1997/07/31 20163.79 17823.44
1997/08/31 18628.98 16494.71
1997/09/30 19985.84 17421.22
1997/10/31 18562.25 16086.58
1997/11/30 18484.40 15925.71
1997/12/31 18620.53 16067.61
1998/01/31 19191.27 16805.43
1998/02/28 20249.52 17886.86
1998/03/31 21141.31 18441.00
1998/04/30 21712.06 18590.00
IMATRL PRASUN SHR__CHT 19980430 19980507 151501 R00000000000100
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Advisor Overseas Fund - Class B on April 23,
1990, when the fund started. As the chart shows, by April 30, 1998,
the value of the investment would have been $21,712 - a 117.12%
increase on the initial investment. For comparison, look at how the
MSCI EAFE Index did over the same period. With dividends reinvested,
the same $10,000 investment would have grown to $18,590 - a 85.90%
increase.
UNDERSTANDING
PERFORMANCE
Many markets around the globe
offer the potential for significant
growth over time; however,
investing in foreign markets
means assuming greater risks
than investing in the United
States. Factors like changes in
a country's financial markets,
its local political and economic
climate, and the fluctuating value
of its currency create these risks.
For these reasons an
international fund's performance
may be more volatile than a
fund that invests exclusively in
the United States. Past
performance is no guarantee of
future results and you may have
a gain or loss when you sell
your shares.
(checkmark)
FIDELITY ADVISOR OVERSEAS 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). The initial offering of Class C shares took place on November
3, 1997. Class C shares bear a 1.00% 12b-1 fee. Returns between July
3, 1995 and November 3, 1997 are those of Class B shares and reflect
Class B shares' 1.00% 12b-1 fee. Returns prior to July 3, 1995 are
those of Class T, the original class of the fund, and reflect Class
T's prior 0.65% 12b-1 fee. Had Class C's 12b-1 fee been reflected,
returns prior to July 3, 1995 would have been lower. Class C shares'
contingent deferred sales charge included in the past six months, past
one year, past five year and life of fund total return figures are 1%,
1%, 0% and 0%, respectively. If Fidelity had not reimbursed certain
class expenses, the total returns would have been lower. Prior to
December 1, 1992, Fidelity Advisor Overseas Fund operated under a
different investment objective. Accordingly, the fund's historical
performance may not represent its current investment policies.
CUMULATIVE TOTAL RETURNS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PERIODS ENDED APRIL 30, 1998 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

FIDELITY ADV OVERSEAS - CL C 16.98% 24.36% 83.97% 117.14%

FIDELITY ADV OVERSEAS - CL C 15.98% 23.36% 83.97% 117.14%
(INCL. CONTINGENT DEFERRED SALES CHARGE)

MSCI EAFE 15.56% 19.17% 62.18% 85.90%

INTERNATIONAL FUNDS AVERAGE 16.25% 20.89% 80.98% N/A

</TABLE>

CUMULATIVE TOTAL RETURNS show Class C's performance in percentage
terms over a set period - in this case, six months, one year, five
years or since the fund started on April 23, 1990. 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 the performance of the Morgan Stanley Capital
International Europe, Australasia, Far East Index (MSCI EAFE Index) -
a market capitalization weighted, unmanaged index of over 1,000
foreign stocks. To measure how Class C's performance stacked up
against its peers, you can compare it to the international funds
average, which reflects the performance of mutual funds with similar
objectives tracked by Lipper Analytical Services, Inc. The past six
months average represents a peer group of 503 mutual funds. These
benchmarks include reinvested dividends and capital gains, if any, and
exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED APRIL 30, 1998 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

FIDELITY ADV OVERSEAS - CL C 24.36% 12.97% 10.14%

FIDELITY ADV OVERSEAS - CL C 23.36% 12.97% 10.14%
(INCL. CONTINGENT DEFERRED SALES CHARGE)

MSCI EAFE 19.17% 10.15% 8.03%

INTERNATIONAL FUNDS AVERAGE 20.89% 12.41% N/A

AVERAGE ANNUAL TOTAL RETURNS take Class C shares' cumulative return
and show you what would have happened if Class C shares had performed
at a constant rate each year.
$10,000 OVER LIFE OF FUND
FA Overseas -CL C MS EAFE Index (Net)
00485 MS001
1990/04/23 10000.00 10000.00
1990/04/30 9890.01 9870.12
1990/05/31 10320.00 10996.32
1990/06/30 10840.00 10899.46
1990/07/31 11480.00 11052.99
1990/08/31 10110.00 9979.65
1990/09/30 9250.01 8588.84
1990/10/31 9550.01 9927.15
1990/11/30 9560.00 9341.56
1990/12/31 9467.29 9492.89
1991/01/31 9699.18 9799.94
1991/02/28 10132.72 10850.48
1991/03/31 9568.12 10199.10
1991/04/30 9558.03 10299.26
1991/05/31 9568.12 10406.73
1991/06/30 8852.27 9642.03
1991/07/31 9356.38 10115.76
1991/08/31 9497.53 9910.33
1991/09/30 9991.57 10468.87
1991/10/31 9860.49 10617.27
1991/11/30 9608.44 10121.61
1991/12/31 10109.06 10644.32
1992/01/31 10139.75 10416.96
1992/02/29 10375.08 10044.12
1992/03/31 10057.89 9381.04
1992/04/30 10579.72 9425.64
1992/05/31 11009.46 10056.55
1992/06/30 10835.51 9579.54
1992/07/31 10416.01 9334.37
1992/08/31 10129.52 9919.83
1992/09/30 9976.04 9723.94
1992/10/31 9280.27 9213.87
1992/11/30 9157.49 9300.58
1992/12/31 9620.40 9348.68
1993/01/31 10106.59 9347.54
1993/02/28 10323.83 9629.89
1993/03/31 10954.85 10469.29
1993/04/30 11803.10 11462.85
1993/05/31 12113.44 11704.95
1993/06/30 11782.41 11522.33
1993/07/31 12361.70 11925.66
1993/08/31 13178.92 12569.45
1993/09/30 13044.44 12286.52
1993/10/31 13375.47 12665.16
1993/11/30 12858.24 11558.09
1993/12/31 13645.20 12392.67
1994/01/31 14546.59 13440.41
1994/02/28 14349.74 13403.18
1994/03/31 13987.11 12825.89
1994/04/30 14588.04 13370.08
1994/05/31 14318.66 13293.32
1994/06/30 14204.69 13481.18
1994/07/31 14567.32 13610.83
1994/08/31 14702.01 13933.07
1994/09/30 14246.14 13494.24
1994/10/31 14567.32 13943.59
1994/11/30 13997.48 13273.46
1994/12/31 13915.13 13356.58
1995/01/31 13340.99 12843.48
1995/02/28 13372.31 12806.62
1995/03/31 13789.86 13605.38
1995/04/30 14196.99 14117.06
1995/05/31 14353.57 13948.78
1995/06/30 14457.96 13704.16
1995/07/31 15084.30 14557.33
1995/08/31 14645.86 14002.02
1995/09/30 14823.33 14275.48
1995/10/31 14531.04 13891.75
1995/11/30 14666.74 14278.28
1995/12/31 15108.75 14853.55
1996/01/31 15373.44 14914.53
1996/02/29 15384.03 14964.95
1996/03/31 15585.19 15282.75
1996/04/30 15987.53 15727.07
1996/05/31 15966.36 15437.66
1996/06/30 16072.23 15524.55
1996/07/31 15595.78 15070.80
1996/08/31 15691.08 15103.83
1996/09/30 16125.17 15505.07
1996/10/31 15945.18 15346.41
1996/11/30 16771.03 15957.02
1996/12/31 16838.38 15751.75
1997/01/31 16838.38 15203.59
1997/02/28 17205.41 15455.97
1997/03/31 17338.86 15514.70
1997/04/30 17461.20 15600.03
1997/05/31 18540.02 16618.24
1997/06/30 19507.61 17537.23
1997/07/31 20163.80 17823.44
1997/08/31 18628.99 16494.71
1997/09/30 19985.85 17421.22
1997/10/31 18562.26 16086.58
1997/11/30 18479.43 15925.71
1997/12/31 18612.05 16067.61
1998/01/31 19195.13 16805.43
1998/02/28 20256.35 17886.86
1998/03/31 21154.30 18441.00
1998/04/30 21714.06 18590.00
IMATRL PRASUN SHR__CHT 19980430 19980507 151525 R00000000000100
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Advisor Overseas Fund - Class C on April 23,
1990, when the fund started. As the chart shows, by April 30, 1998,
the value of the investment would have been $21,714 - a 117.14%
increase on the initial investment. For comparison, look at how the
MSCI EAFE Index did over the same period. With dividends reinvested,
the same $10,000 investment would have grown to $18,590 - a 85.90%
increase.
UNDERSTANDING
PERFORMANCE
Many markets around the globe
offer the potential for significant
growth over time; however,
investing in foreign markets
means assuming greater risks
than investing in the United
States. Factors like changes in
a country's financial markets,
its local political and economic
climate, and the fluctuating value
of its currency create these risks.
For these reasons an
international fund's performance
may be more volatile than a
fund that invests exclusively in
the United States. Past
performance is no guarantee of
future results and you may have
a gain or loss when you sell
your shares.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
During the six-months that ended
April 30, 1998, some of the world's
financial markets enjoyed robust
growth, while others continued to
unravel. For the period, the
Morgan Stanley Capital
International EAFE Index - which
measures stock performance in
Europe, Australia and the Far East
- - returned 15.56%. Most
economies in Europe continued to
thrive amidst an environment of
relatively benign inflation and
reduced interest rates, as many
countries prepared for the advent
of the European Monetary Union
in January 1999. Many
corporations followed the path to
efficiency through restructuring
and merger and acquisition
activity. Strong individual
performers included Portugal,
Spain and Italy. Latin American
markets struggled, however, as
economic turmoil in Southeast
Asia prompted a massive
sell-off of most emerging-market
stocks at the beginning of the
period. The Brazilian market
rebounded, performing fairly well
during the period after interest
rates fell, but Mexico and
Venezuela were victims of
plummeting oil prices at the end of
1997. Southeast Asian markets -
the origin of most of the volatility in
emerging markets - performed
poorly. The depreciation of many
currencies in the region prompted
central banks to dramatically raise
interest rates, slowing economies
by making borrowing more
expensive. Japan suffered from
sharply falling stock prices and
depreciating currencies, while the
failure of several Japanese
financial firms raised concerns
about widespread corporate
bankruptcies. Hong Kong fared
significantly better than other
Asian markets because of its
more mature and less volatile
nature.
An interview with Richard Mace, Portfolio Manager of Fidelity Advisor
Overseas Fund
Q. HOW DID THE FUND PERFORM, RICK?
A. It performed well. For the six months that ended April 30, 1998,
the fund's Class A, Class T, Class B and Class C shares returned
17.45%, 17.33%, 16.97% and 16.98%, respectively. These returns topped
the 15.56% return of the Morgan Stanley Capital International Europe,
Australasia and Far East (EAFE) Index, and the 16.25% return for the
international funds average tracked by Lipper Analytical Services. For
the 12 months that ended April 30, 1998, the fund's Class A, Class T,
Class B and Class C shares returned 25.16%, 25.12%, 24.34% and 24.36%,
respectively, compared to 19.17% and 20.89% for the EAFE index and
Lipper peer group, respectively.
Q. WHAT FACTORS HELPED THE FUND BEAT THE INDEX AND THE LIPPER AVERAGE
OVER THE PAST SIX MONTHS?
A. Almost all of the fund's outperformance in the period was due to
stock selection. European financial positions made particularly strong
contributions to performance, as low interest rates, benign inflation,
improving economies and surging securities markets provided a
favorable environment for banks and insurers. In addition, merger and
acquisition activity within this sector continued to boost valuations.
Particular standouts included companies that were among the fund's 25
largest holdings, including Swiss banking companies Credit Suisse and
Julius Baer, as well as French bank Societe Generale Paris and
Germany's BHF Bank. Insurers also aided performance and included Dutch
company ING Groep and Sweden's Skandia Foersaekrings, as well as Axa
and Union Assurances Federales in France. Telecommunications stocks
also were among the fund's most stellar performers. In addition to
recent merger and consolidation activity, the cellular market in both
the United Kingdom and Italy was particularly strong, and fund
holdings of Britain's Vodafone Group and Italy's Telecom Italia and
Telecom Italia Mobile were among the fund's best performers.
Q. LET'S TAKE A LOOK AT THE FUND'S TOP FIVE HOLDINGS. FOUR OF THEM
WERE TOP FIVE HOLDINGS SIX MONTHS AGO. IS THAT STABILITY TYPICAL OF
YOUR STRATEGY?
A. Yes, it is. I don't have a particular holding period in mind when I
choose investments for the fund. I start by looking for undervalued
stocks of companies with favorable fundamentals. If a company's
business prospects continue as hoped and its stock's valuation doesn't
rise above a reasonable range, I tend to hold onto it for some time.
This is the kind of careful analytical process I use when selecting
stocks. I'll stay with a stock if it's the right stock to own.
Q. WHICH STOCKS PROVIDED THE BEST PERFORMANCE FOR THE FUND DURING THE
PAST SIX MONTHS?
A. Alcatel Alsthom was one of the top contributors to performance.
This is a French electronics equipment company with a superb
management team. The team has been concentrating on the divestiture of
peripheral businesses and non-core assets, instead aiming its focus on
its core, high-return businesses. An enormous increase in free cash
flow has resulted from this program, enabling the company to reduce
debt and thus improve its balance sheet. One of its main businesses is
in the manufacture of telecommunications equipment, a very fast
growing sector of late. British cellular company Vodafone was another
major holding in the telecommunications sector that boosted
performance. Vodafone has been growing its business at a pace that has
exceeded expectations in both magnitude and sustainability. Also among
the fund's top performers for the period was the British-based
business-services company Rentokil, which provides a wide range of
services to businesses worldwide, such as cleaning, maintenance and
landscaping. I bought it because it was cheap and its businesses were
growing at a very rapid rate.
Q. WHICH INVESTMENTS DIDN'T TURN OUT AS WELL AS YOU WOULD HAVE LIKED?
A. Japanese financial holdings hurt performance the most. With the
Japanese economy remaining stagnant and continued concerns about asset
quality, banks were especially hard hit. Securities brokers were hurt
by the equity market's poor performance because their fortunes are
highly correlated with the level of market activity. Similarly, real
estate company holdings also suffered from the general decline in the
domestic economy, despite some signs that real estate prices might be
bottoming. Among the fund's financial holdings most hurt by these
events were Long Term Credit Bank, Daiwa Securities and Sumitomo
Realty & Development Company.
Q. RICK, LET'S TAKE A LOOK AT THE FUND'S COUNTRY WEIGHTINGS.
A. The fund's country and regional weightings are a result of my
stock-picking process. I don't try to pick markets that I feel will
outperform. Instead, I try to find good companies with good growth
prospects that are selling at reasonable valuations, wherever that
takes us. However, looking more closely at the question, the Japanese
component of the fund continued to decline over the past six months;
and at the end of the period the fund remained significantly
underweighted in that market relative to the Japanese component in the
EAFE index. The decline in the Japanese weighting was due mostly to
the effect of changes in the relative valuations elsewhere in the
portfolio. Most European positions experienced strong price
appreciation, while valuations in the Japanese component declined over
the period. Relative to the index, the fund was overweighted in
Europe, especially in France, the Netherlands, Ireland, Sweden,
Finland and Norway, while it was underweighted in the U.K., Germany,
Switzerland, Spain and Italy. Emerging market exposure was modestly
increased from 3.7% to 4.1% over the period, with most of the
additions centered in Brazil. The fund continued to be underweighted
in the Southeast Asian markets, which accounted for only 0.2% of total
fund assets.
Q. WHAT HAS BEEN YOUR STRATEGY IN TERMS OF EMERGING MARKETS?
A. With the exception of Latin America and South Africa, I have
generally avoided the emerging markets as I could find few situations
where the returns seemed to justify the economic, political and
currency risks that have plagued some of these markets. However,
significant additions were made to holdings of Brazilian telephone
company Telebras that appeared to be cheaply priced. This company was
the fund's 11th largest position at the end of April.
Q. LOOKING OUT OVER THE NEAR FUTURE, WHAT'S YOUR OUTLOOK?
A. I think the European economies will continue to improve. However,
stock selection will be especially critical. Company earnings must
come through as expected in order to justify the lofty stock
valuations that the markets have placed on them. If earnings
disappoint, we run the risk of a stock correction. In Japan, I am
continuing to look for signs of an improvement in the economy and have
pinpointed a number of companies that could be early beneficiaries of
a turnaround as candidates for purchase. I also will be keeping close
watch on the emerging markets, where we are beginning to see some
significant improvement in valuations. However, unlike my approach to
investing in the developed markets, country and regional factors play
as much of a role in my decision making as stock selection. In
general, emerging markets are more volatile than developed markets.
Accordingly, when I make an investment in a stock in an emerging
market, I expect a higher level of return to compensate shareholders
for the higher level of risk there. Up to this point, I have not found
many stocks outside of Latin America and South Africa that meet these
criteria.
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.

RICK MACE ON COUNTRY
VERSUS INDUSTRY SELECTION IN
THE INVESTMENT PROCESS:
"When discussing the investment
performance and portfolio
positioning of the fund, we often
refer to the fund's country and
regional weightings relative to an
index or peer group. However,
studies have shown that a stock's
performance is becoming
increasingly correlated with that of
its industry and decreasingly
correlated with the performance of
its national market. If you look at a
stock such as Japan's Honda Motor
Company, you see a company that
is more correlated with the world
auto market than with the
Japanese equity market. We
believe an industry focus is most
important when one is looking at a
fund's positioning. We manage our
international funds using a matrix
that includes both country and
industry analysis. Fidelity has both
country and industry expertise, but
we don't think we add much value
through country selection. We
believe that we add the most value
through stock selection that
depends more on industry work. As
an example, the fund is
underweighted in Germany. This is
not indicative of my view of the
German market, but a result of the
fact that I have found more
attractive stocks in other markets
in Europe. With the European
Monetary Union coming on line,
we think that our analytical focus
on industries makes more sense,
because the environment is
rapidly changing. I firmly believe
that global investors are slowly
moving toward our style of industry
analysis as opposed to country
selection."
FUND FACTS
GOAL: seeks growth of capital
primarily through investments
in foreign securities
START DATE: April 23, 1990
SIZE: as of April 30, 1998,
more than $1.3 billion
MANAGER: Richard Mace,
since 1996; joined Fidelity
in 1987
(checkmark)
INVESTMENT CHANGES

TOP FIVE STOCKS AS OF APRIL 30, 1998

<TABLE>
<CAPTION>
<S> <C> <C>
% OF FUND'S % OF FUND'S INVESTMENTS
INVESTMENTS IN THESE STOCKS
6 MONTHS AGO

ALCATEL ALSTHOM COMPAGNIE GENERALE 2.3 2.1
D'ELECTRICITE SA (FRANCE, ELECTRICAL EQUIPMENT)

PHILIPS ELECTRONICS NV (BEARER) 2.0 1.9
(NETHERLANDS, ELECTRICAL EQUIPMENT)

TOTAL SA CLASS B (FRANCE, OIL & GAS) 2.0 2.3

NOVARTIS AG (REG.) (SWITZERLAND, DRUGS 1.8 2.1
& PHARMACEUTICALS)

CREDIT SUISSE GROUP (REG.) (SWITZERLAND, BANKS) 1.4 1.3

</TABLE>

TOP FIVE MARKET SECTORS AS OF APRIL 30, 1998
% OF FUND'S % OF FUND'S INVESTMENTS
INVESTMENTS IN THESE MARKET SECTORS
6 MONTHS AGO

FINANCE 20.6 16.9

HEALTH 9.0 10.2

BASIC INDUSTRIES 8.5 10.1

UTILITIES 8.3 7.5

ENERGY 7.3 7.7

TOP FIVE COUNTRIES AS OF APRIL 30, 1998
(EXCLUDING CASH EQUIVALENTS) % OF FUND'S % OF FUND'S INVESTMENTS
INVESTMENTS IN THESE COUNTRIES
6 MONTHS AGO

JAPAN 16.3 21.0

UNITED KINGDOM 14.9 15.8

FRANCE 13.5 12.3

NETHERLANDS 8.8 8.6

SWITZERLAND 5.9 5.0

TOP COUNTRIES ARE BASED UPON LOCATION OF ISSUER OF EACH SECURITY,
INCLUDING WHERE THE FUND IS EXPOSED TO POTENTIAL POLITICAL AND CREDIT
RISKS. PERCENTAGES ARE ADJUSTED FOR THE EFFECT OF OPEN FUTURES
CONTRACTS, IF APPLICABLE.
ASSET ALLOCATION (% OF FUND'S INVESTMENTS)
AS OF APRIL 30, 1998 AS OF OCTOBER 31, 1997
ROW: 1, COL: 1, VALUE: 92.5
ROW: 1, COL: 2, VALUE: 1.1
ROW: 1, COL: 3, VALUE: 6.4
STOCKS, CLOSED-END
INVESTMENT COMPANIES
AND EQUITY FUTURES 94.1%
FOREIGN GOVERNMENT
OBLIGATIONS 0.0%
SHORT-TERM
INVESTMENTS 5.9%
STOCKS, CLOSED-END
INVESTMENT COMPANIES
AND EQUITY FUTURES 93.5%
FOREIGN GOVERNMENT
OBLIGATIONS 0.1%
SHORT-TERM
INVESTMENTS 6.4%
ROW: 1, COL: 1, VALUE: 94.09999999999999
ROW: 1, COL: 2, VALUE: 0.0
ROW: 1, COL: 3, VALUE: 5.9
INVESTMENTS APRIL 30, 1998 (UNAUDITED)

SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENT IN SECURITIES

COMMON STOCKS - 89.9%
SHARES VALUE (NOTE 1)
(000S)
ARGENTINA - 0.3%
Bansud SA Class B (a) 55,900 $ 526
Telecom Argentina Class B sponsored ADR 63,400 2,282
YPF Sociedad Anonima sponsored ADR representing
Class D shares 58,600 2,044
4,852
AUSTRALIA - 2.5%
Australia & New Zealand Banking Group Ltd. 773,200 5,379
Brambles Industries Ltd. 126,150 2,592
Broken Hill Proprietary Co. Ltd. (The) 251,400 2,451
CSR Ltd. 308,900 984
Coles Myer Ltd. 428,900 2,068
Colonial Ltd. 474,209 1,664
Commonwealth Bank of Australia (c) 124,900 1,495
Leighton Holdings Ltd. 251,600 957
National Australia Bank Ltd. (a) 182,600 2,587
National Mutual Holdings Ltd. 606,909 1,432
News Corp. Ltd. 291,474 1,947
QNI Ltd. 649,853 380
Rio Tinto Ltd. 80,700 1,115
Western Mining Holdings Ltd. 1,278,354 4,537
Westpac Banking Corp. 92,900 622
Woodside Petroleum Ltd. 231,200 1,507
Woolworths Ltd. 768,400 2,637
34,354
AUSTRIA - 0.2%
OMV AG 12,600 1,869
Voest-Alpine Stahl AG 24,000 984
2,853
BRAZIL - 1.7%
Compania Energertica Minas Gerais 93,794,000 4,552
Petrobras PN (Pfd. Reg.) 18,832,000 4,776
Telebras sponsored ADR 122,300 14,898
24,226
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
CANADA - 2.9%
Abitibi-Consolidated, Inc. 52,900 $ 785
Alcan Aluminium Ltd. 171,800 5,571
Alliance Forest Products, Inc. (a) 48,300 1,018
Alliance Forest Products, Inc. (a)(c) 54,300 1,144
BCE, Inc. 157,400 6,699
Canadian Pacific Ltd. 17,300 508
Canadian National Railway Co. 9,500 618
Canadian Natural Resources Ltd. (a) 111,600 2,398
Cominco Ltd. 187,200 3,068
Domtar, Inc. 313,100 2,625
Greenstone Resources Ltd. (a) 89,500 544
Inco Ltd. 98,700 1,728
National Bank of Canada 232,100 4,785
Noranda, Inc. 230,800 4,758
Renaissance Energy Ltd. (a) 15,700 302
Rio Alto Exploration Ltd. (a) 207,800 2,396
St. Laurent Paperboard, Inc. (a)(c) 98,000 1,332
40,279
DENMARK - 0.9%
Den Danske Bank Group AS 34,900 4,229
International Service Systems AS, Series B 50,700 2,739
Jyske Bank AS (Reg.) 4,300 499
Novo-Nordisk AS Class B 15,700 2,544
Unidanmark AS Class A 26,800 2,250
12,261
FINLAND - 2.4%
Cultor OY, Series 1 36,400 2,150
Enso OY Class R 488,100 5,192
Huhtamaki Ord. 50,100 2,895
Metsa-Serla Ltd. Class B 661,400 6,854
Nokia Corp. AB, Series A 64,400 4,323
Outokumpu OY Class A 96,300 1,351
Pohjola Class B 48,830 2,705
UPM-Kymmene Corp. 201,000 6,028
Valmet OY 116,100 1,919
33,417
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FRANCE - 13.5%
Alcatel Alsthom Compagnie Generale d'Electricite SA 173,500 $ 31,452
Accor SA 21,768 5,927
Axa SA 64,090 7,517
Atos SA (a) 14,200 2,371
Cap Gemini Sogeti SA 60,000 7,785
Coflexip sponsored ADR 48,000 3,420
Compagnie de Saint Gobain 9,900 1,648
Credit Commercial de France Ord. 57,500 4,585
Elf Sanofi SA 34,000 4,118
Eramet SA 48,075 2,412
Generale des Eaux, Cie 8,600 1,576
GAN (Groupe des Assurances Nationales) (a) 201,300 5,728
Groupe Danone 19,600 4,624
LVMH (Moet-Hennessy Louis Vuitton) sponsored ADR 9,800 2,016
Lafarge SA 31,250 2,949
Lafarge SA RFD (a) 2,604 239
Lagardere S.C.A. (Reg.) 90,500 3,458
Michelin SA (Compagnie Generale des Etablissements)
Class B 87,651 5,517
Nationale Elf Aquitaine 92,300 12,098
Pechiney SA Class A 155,743 6,960
Peugeot SA Ord. 8,800 1,526
Renault SA Ord. (a) 56,400 2,614
Rhone Poulenc SA Class A 208,505 10,187
Royal Canin SA (c) 27,600 1,663
Scor SA 44,500 2,741
Societe Generale Class A 57,200 11,897
Total SA Class B 229,590 27,271
Unibail (a) 8,700 1,243
Usinor Sacilor 286,200 4,279
Union Assurances federale SA 31,200 4,877
Valeo SA 23,800 2,364
187,062
GERMANY - 4.5%
Allianz AG 27,400 8,870
BHF Bank AG 211,700 8,782
BASF AG 144,900 6,568
Bayer AG 104,800 4,675
Continental Gummi-Werke AG 59,200 1,689
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
GERMANY - CONTINUED
Daimler-Benz AG Ord. 52,500 $ 5,199
Deutsche Bank AG 22,400 1,776
Deutsche Lufthansa AG 173,100 4,096
Hoechst AG Ord. 114,700 4,636
Mannesmann AG Ord. 13,352 11,048
Philipp Holzmann AG (a) 4,200 1,258
Veba AG Ord. 58,900 3,919
62,516
HONG KONG - 0.7%
China Telecom (Hong Kong) Ltd. 1,314,000 2,538
CLP Holdings Ltd. 230,000 1,104
Dairy Farm International Holdings Ltd. 622,000 796
Hutchison Whampoa Ltd. Ord. 152,000 940
Johnson Electric Holdings Ltd. 436,000 1,477
Li & Fung Ltd. 92,000 154
National Mutual Asia Ltd. 642,000 514
Peregrine Investments Holdings Ltd. 725,000 -
Sun Hung Kai Properties Ltd. 68,000 404
Vtech Holdings Ltd. 345,000 1,211
9,138
IRELAND, REP OF (SOUTHERN) - 1.4%
Bank of Ireland, Inc. 374,810 7,646
CRH PLC 94,442 1,338
Elan Corp. PLC ADR (a) 30,300 1,883
Independent Newspapers PLC 560,666 3,372
Smurfit (Jefferson) Group PLC (UK) 469,500 1,742
Smurfit (Jefferson) Group PLC 945,300 3,448
19,429
ITALY - 1.4%
Assicurazioni Generali Spa 206,100 6,169
Credito Italiano Ord. 669,400 3,502
Eni Spa 452,800 3,032
Telecom Italia:
Mobile Spa 1,063,000 6,086
Spa 133,330 1,004
19,793
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
JAPAN - 16.3%
Acom Co. Ltd. 66,500 $ 3,500
Aiful Corp. (c) 39,800 2,625
Aiwa Co. Ltd. 26,100 776
Asahi Breweries Ltd. 196,000 2,557
Bank of Tokyo-Mitsubishi Ltd. 65,000 802
Banyu Pharmaceutical Co. Ltd. 152,000 1,957
Bridgestone Corp. 127,000 2,888
Canon, Inc. 228,000 5,373
Circle K Japan Co. Ltd. 8,800 361
Citizen Watch Co. Ltd. Ord. 299,000 2,003
Daiwa House Industry Co. Ltd. 70,000 564
Daiwa Securities Co. Ltd. 486,000 1,829
Dainippon Ink & Chemicals, Inc. 244,000 781
Denny's Japan Co. Ltd. 50,000 1,280
Fuji Bank Ltd. 315,000 1,767
Fuji Photo Film Co. Ltd. 253,000 8,971
Fujitsu Ltd. 149,000 1,733
Fujitec Co. Ltd. 189,000 1,167
Hitachi Ltd. 597,000 4,265
Hitachi Maxell Ltd. 313,000 5,938
Honda Motor Co. Ltd. 303,000 10,950
Ito-Yokado Co. Ltd. 75,000 3,868
Jafco Co. Ltd. 28,000 930
Kao Corp. 186,000 2,724
Long Term Credit Bank of Japan Ltd. (The) 1,241,000 2,027
Mabuchi Motor Co. 12,500 721
Matsushita Electric Industrial Co. Ltd. 479,000 7,645
Matsushita Communication Industrial Co. Ltd. 57,000 1,678
Matsushita Electric Works Co. Ltd. 445,000 3,987
Meitec Corp. 34,000 1,113
Minebea Co. Ltd. 628,000 6,997
Minolta Camera Co. Ltd. 537,000 3,477
Mitsubishi Electric Co. Ord. 936,000 2,396
Mitsubishi Estate Co. Ltd. 415,000 3,999
Mitsubishi Heavy Industries Ltd. 234,000 863
Mitsubishi Trust & Banking Corp. 127,000 1,205
Mitsui Fudosan Co. Ltd. 185,000 1,683
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
JAPAN - CONTINUED
Nintendo Co. Ltd. Ord. 66,000 $ 6,032
Nippon Telegraph & Telephone Corp. Ord. 255 2,227
Nichicon Corp. 68,000 737
Nichiei Co. Ltd. 21,230 1,646
Nomura Securities Co. Ltd. 507,000 6,170
Omron Corp. 334,000 5,218
Orix Corp. 88,900 6,124
Rohm Co. Ltd. 61,000 6,861
Sakura Bank Ltd. 1,239,000 4,244
Sankyo Co. Ltd. 785,000 19,385
Sekisui House Ltd. 138,000 1,074
Sharp Corp. 140,000 1,096
Shin-Etsu Chemical Co. Ltd. 115,000 2,234
Shohkoh Fund & Co. Ltd. 4,400 1,395
Sony Corp. 101,600 8,631
Sony Music Entertainment Japan, Inc. 78,300 3,054
Sumitomo Realty & Development Co. Ltd. 595,000 2,845
Sumitomo Special Metals Co. 32,000 715
TDK Corp. 69,000 5,434
THK Co. Ltd. 336,200 3,215
Takeda Chemical Industries Ltd. 467,000 13,290
Takefuji Corp. 48,400 2,533
Takefuji Corp. (c) 35,000 1,831
Terumo Corp. 52,000 759
Tokio Marine & Fire Insurance Co. Ltd. (The) 193,000 2,092
Toyota Motor Corp. 60,000 1,558
Tokyo Electron Ltd. 51,000 1,997
Tokyo Seimitsu Co. Ltd. 35,000 1,025
Uni Charm Corp. Ord. 51,000 1,920
Yamanouchi Pharmaceutical Co. Ltd. 121,000 2,851
225,593
LUXEMBOURG - 0.1%
Stolt Comex Seaway SA (a) 59,600 1,937
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
MEXICO - 1.1%
Groupo Financiero Banamex-Accival Class B (a) 627,000 $ 1,957
Grupo Carso SA de CV Class A-1 94,000 591
Grupo Financiero Bancomer Class B 9,243,000 6,378
Grupo Elektra SA 341,200 487
Grupo Financiero Inbursa SA Class B 300,000 915
Telefonos de Mexico SA sponsored ADR representing Ord.
Class L shares 81,500 4,615
14,943
MALAYSIA - 0.1%
Malayan Banking BHD 17,000 50
Oriental Holdings BHD 624,800 1,306
1,356
NETHERLANDS - 8.8%
AKZO Nobel NV 79,000 16,064
Ahold NV 123,944 3,862
Beter Bed Holding NV 53,900 1,807
Benckiser NV Class B 55,800 3,254
Hagemeyer NV 78,700 3,756
ING Groep NV 223,903 14,474
Koninklijke Hoogovens NV 87,700 3,947
Nutreco Holding NV 120,800 4,308
Philips Electronics NV (Bearer) 307,400 27,666
Royal Dutch Petroleum Co. Ord. 257,900 14,587
Royal Ptt Nederland NV 46,800 2,417
Unilever NV Ord. 226,000 16,073
VNU Ord. 77,300 2,500
Vendex International NV 27,600 1,769
Vendex International NV (c) 54,500 3,493
Vedior NV 44,900 1,364
121,341
NETHERLANDS ANTILLES - 0.1%
Schlumberger Ltd. 20,800 1,724
NEW ZEALAND - 0.1%
Air New Zealand Ltd. Class B 346,000 489
Sky Network Television Ltd. (a) 232,100 347
836
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
NORWAY - 0.4%
Den Norske Bank AS Class A Free shares 98,600 $ 518
NCL Holdings AS (a) 827,333 3,978
Schibsted AS, Series B 58,500 1,112
5,608
PERU - 0.1%
Compania de Minas Buenaventura SA Class B sponsored ADR 49,400 766
PORTUGAL - 0.8%
BPI-SGPS SA (Reg.) 131,500 6,108
Banco Pinto & Sotto Mayor SA (Reg.) 63,300 1,592
Electricidade de Portugal SA 72,500 1,890
Portugal Telecom SA 10,500 564
Telecel Comunicacoes Pessoais SA (a) 4,000 717
10,871
RUSSIA - 0.1%
Vimpel Communications sponsored ADR (a) 30,500 1,647
SINGAPORE - 0.1%
Kim Engineering Holdings Ltd. 1,700,000 622
Singapore International Airlines Ltd. 61,000 397
1,019
SOUTH AFRICA - 0.3%
Amalgamated Banks of South Africa Ltd. 60,300 522
Gencor Ltd. (Reg.) 102,420 244
Sasol, Ltd. 336,700 3,398
4,164
SPAIN - 2.0%
Banco Bilbao Vizcaya SA Ord. (Reg.) 141,700 7,284
Corporacion Mapfre Compania Internacional
de Reaseguros SA (Reg.) 27,600 1,082
Iberdrola SA 96,400 1,549
Mapfre Vida SA 24,500 1,221
Repsol SA Ord. 37,400 2,048
Telefonica de Espana SA Ord. 338,800 14,129
27,313
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
SWEDEN - 5.5%
ABB AB:
Series A 184,000 $ 2,977
Series B 94,000 1,454
Astra AB Class A Free shares 693,900 14,226
Electrolux AB 54,500 5,060
Ericsson (L.M.) Telephone Co. Class B 60,200 3,096
ForeningsSparbanken AB, Series A 90,100 2,811
Granges AB (Reg.) 11,050 201
IBS (International Business Systems) AB Class B Free shares (a)
159,300 2,455
Investor AB Class B Free shares 50,000 2,817
Mandamus AB rights 6/15/98 90,100 141
Nordbanken Holding AB 402,900 2,961
SKF AB Ord. 72,000 1,448
Skandia Foersaekrings AB 61,900 4,302
Svenska Handelsbanken 147,900 6,694
Swedish Match Co. 2,675,200 9,244
Volvo AB Class B 529,800 15,760
75,647
SWITZERLAND - 5.9%
Adecco SA (Bearer) 5,700 2,487
Compagnie Financiere Richemont AG Class A Unit (Bearer) 392 561
Credit Suisse Group (Reg.) 88,600 19,475
Holderbank Financiere Glarus AG (Bearer) 200 209
Julius Baer Holding AG 3,229 8,904
Nestle SA (Reg.) 6,193 12,004
Novartis AG (Reg.) 15,439 25,504
Roche Holding AG 300 3,038
Swiss Bank Corp. (Reg.) 12,500 4,338
Union Bank of Switzerland Ord. (Bearer) 3,200 5,150
81,670
UNITED KINGDOM - 14.9%
BAT Industries PLC Ord. 560,500 5,287
BBA Group PLC 169,745 1,394
Bank of Scotland 226,000 2,775
Barclays PLC Ord. 241,000 6,946
Barratt Developments PLC 529,800 2,837
Billiton PLC 512,100 1,463
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
UNITED KINGDOM - CONTINUED
Boots Co. PLC Class L (The) 102,000 $ 1,579
British Aerospace PLC 253,581 8,465
British Petroleum PLC Ord. 744,768 11,753
British Telecommunications PLC Ord. 280,000 3,036
Cable & Wireless PLC Ord. 218,500 2,501
Caradon PLC 2,169,060 7,013
Commercial Union PLC 107,400 2,008
Cookson Group PLC 2,529,700 11,348
Courtaulds Textiles PLC 331,400 1,777
Devro PLC 73,300 665
Dorling Kindersley Holdings PLC, Class L 106,700 458
Dr Solomons Group PLC sponsored ADR (a) 124,400 3,701
English China Clay PLC 120,400 496
Gallaher Group PLC 674,300 3,515
Glaxo Wellcome PLC 328,000 9,262
HSBC Holdings PLC 206,800 6,081
HSBC Holdings PLC Ord. 124,987 3,941
Hazlewood Foods PLC Ord. 158,700 506
Inchcape PLC Ord. 585,200 2,188
Johnson Matthey PLC 103,900 1,052
Ladbroke Group PLC Ord. 740,000 4,065
Lloyds TSB Group PLC 1,053,744 15,766
National Grid Co. PLC 326,230 2,104
Pearson, PLC 123,200 1,929
Perpetual PLC 1,700 114
Pilkington PLC Ord. 825,500 1,731
Rentokil Initial PLC 1,452,300 9,348
Rio Tinto PLC (Reg.) 290,200 4,163
Royal & Sun Alliance Insurance Group PLC 142,024 1,585
Saatchi & Saatchi PLC 283,300 748
Scholl PLC 220,000 1,378
Shell Transport & Trading Co. PLC (Reg.) 1,526,900 11,353
Siebe, PLC 171,500 3,828
SmithKline Beecham PLC Ord. 1,240,402 14,777
Somerfield PLC 779,500 4,406
Tarmac PLC 643,800 1,245
Thames Water PLC Ord. 92,700 1,510
Tomkins PLC Ord. 112,600 662
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
UNITED KINGDOM - CONTINUED
Unigate PLC 210,900 $ 2,558
Unilever PLC Ord. 682,800 7,267
Vodafone Group PLC 1,080,913 11,829
WPP Group PLC (a) 259,900 1,648
206,061
UNITED STATES OF AMERICA - 0.7%
Aluminum Co. of America 58,800 4,557
Brio Technology, Inc. 500 5
D.R. Horton, Inc. 94,900 1,756
Heller Financial, Inc. Class A 4,400 119
Newmont Mining Corp. 29,200 940
Transocean Offshore, Inc. 32,400 1,810
9,187
VENEZUELA - 0.1%
Compania Anonima Nacional Telefonos de Venezuela
sponsored ADR 25,900 868
TOTAL COMMON STOCKS
(Cost $927,508) 1,242,731
PREFERRED STOCKS - 2.3%
CONVERTIBLE PREFERRED STOCKS - 0.1%
UNITED STATES OF AMERICA - 0.1%
WBK Trust $3.135 STRYPES 52,900 1,805
NONCONVERTIBLE PREFERRED STOCKS - 2.2%
AUSTRALIA - 0.1%
Sydney Harbour Casino Holdings Ltd. (a) 940,300 666
GERMANY - 0.7%
Boss (Hugo) AG 400 735
SAP AG (Systeme Anwendungen Produkte) 15,100 7,735
Wella AG 1,800 1,664
10,134
PREFERRED STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
NONCONVERTIBLE PREFERRED STOCKS - CONTINUED
ITALY - 1.4%
Banca Intesa Spa 100 $ -
Telecom Italia:
Mobile Spa de Risp 2,251,900 8,107
Spa 2,032,225 10,708
18,815
TOTAL NONCONVERTIBLE PREFERRED STOCKS 29,615
TOTAL PREFERRED STOCKS
(Cost $15,413) 31,420
CLOSED-END INVESTMENT COMPANIES - 0.5%
EMERGING MARKETS - 0.2%
Morgan Stanley Asia-Pacific Fund, Inc. 109,900 817
Templeton Dragon Fund, Inc. 112,700 1,240
2,057
GERMANY - 0.3%
Emerging Germany Fund, Inc. 44,900 643
New Germany Fund, Inc. (The) 208,100 3,720
4,363
TOTAL CLOSED-END INVESTMENT COMPANIES
(Cost $6,301) 6,420
FOREIGN GOVERNMENT OBLIGATIONS - 0.1%
MOODY'S PRINCIPAL
RATINGS AMOUNT (000S)
ITALY - 0.1%
Italian Republic 5%, 6/28/01
(Cost $1,957) Aa3 $ 1,190 2,062
GOVERNMENT OBLIGATIONS - 0.1%
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
UNITED STATES OF AMERICA - 0.1%
U.S. Treasury Bill yield at date of purchase
4.97% 7/23/98 (d) (Cost $692) $ 700 $ 692
CASH EQUIVALENTS - 7.1%
SHARES

Taxable Central Cash Fund (b)
(Cost $98,775) 98,774,861 98,775
TOTAL INVESTMENT IN SECURITIES - 100.0%
(Cost $1,050,646) $ 1,382,100
FUTURES CONTRACTS
AMOUNTS IN THOUSANDS EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
PURCHASED
141 Nikkei 225 Futures Contracts June 1998 $ 11,033 $ (952)
THE FACE VALUE OF FUTURES PURCHASED AS A PERCENTAGE OF TOTAL
INVESTMENT IN SECURITIES - 0.8%
LEGEND
(a) Non-income producing
(b) At period end, the seven-day yield of the Taxable Central Cash
Fund was 5.51%. The yield refers to the income earned by investing in
the fund over the seven-day period, expressed as an annual percentage.
(c) 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
$13,583,000 or 1.0% of net assets.
(d) Security or a portion of the security was pledged to cover margin
requirements for futures contracts. At the period end, the value of
securities pledged amounted to $658,000.
Distribution of investments by country of issue, as a percentage of
total value of investment in securities, is as follows:
MARKET SECTOR DIVERSIFICATION
As a Percentage of Total Value of Investment
in Securities
Aerospace & Defense 0.6%
Basic Industries 8.5
Cash Equivalents 7.1
Construction & Real Estate 3.3
Durables 6.5
Energy 7.3
Finance 20.6
Health 9.0
Holding Companies 1.5
Industrial Machinery & Equipment 7.1
Media & Leisure 2.7
Nondurables 5.7
Precious Metals 0.5
Retail & Wholesale 2.4
Services 1.9
Technology 6.4
Transportation 0.6
Utilities 8.3
100.0%
INCOME TAX INFORMATION
At April 30, 1998, the aggregate cost of investment securities for
income tax purposes was $1,050,982,000. Net unrealized appreciation
aggregated $331,118,000, of which $386,679,000 related to appreciated
investment securities and $55,561,000 related to depreciated
investment securities.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS APRIL 30, 1998 (UNAUDITED)

ASSETS

INVESTMENT IN SECURITIES, AT VALUE (COST $1,050,646) - $ 1,382,100
SEE ACCOMPANYING SCHEDULE

RECEIVABLE FOR INVESTMENTS SOLD 18,045

RECEIVABLE FOR FUND SHARES SOLD 5,146

DIVIDENDS RECEIVABLE 6,115

INTEREST RECEIVABLE 408

RECEIVABLE FOR DAILY VARIATION ON FUTURES CONTRACTS 123

OTHER RECEIVABLES 16

PREPAID EXPENSES 7

TOTAL ASSETS 1,411,960

LIABILITIES

PAYABLE FOR INVESTMENTS PURCHASED $ 10,568

PAYABLE FOR FUND SHARES REDEEMED 2,214

DISTRIBUTIONS PAYABLE 12

ACCRUED MANAGEMENT FEE 1,072

DISTRIBUTIONS FEES PAYABLE 577

OTHER PAYABLES AND ACCRUED EXPENSES 520

TOTAL LIABILITIES 14,963

NET ASSETS $ 1,396,997

NET ASSETS CONSIST OF:

PAID IN CAPITAL $ 1,049,070

DISTRIBUTION IN EXCESS OF NET INVESTMENT INCOME (2,488)

ACCUMULATED UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON 19,958
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS

NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS 330,457
AND ASSETS AND LIABILITIES IN FOREIGN CURRENCIES

NET ASSETS $ 1,396,997

</TABLE>

STATEMENT OF ASSETS AND LIABILITIES - CONTINUED

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNTS) APRIL 30, 1998 (UNAUDITED)

CALCULATION OF MAXIMUM OFFERING PRICE $18.48
CLASS A:
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
($8,754 (DIVIDED BY) 473.63 SHARES)

MAXIMUM OFFERING PRICE PER SHARE (100/94.25 OF $18.48) $19.61

CLASS T: $18.67
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
($1,276,247 (DIVIDED BY) 68,367 SHARES)

MAXIMUM OFFERING PRICE PER SHARE (100/96.50 OF $18.67) $19.35

CLASS B: $18.26
NET ASSET VALUE AND OFFERING PRICE PER SHARE
($56,122 (DIVIDED BY) 3,073 SHARES) A

CLASS C: $18.62
NET ASSET VALUE AND OFFERING PRICE
PER SHARE ($5,813 (DIVIDED BY) 312.22 SHARES) A

INSTITUTIONAL CLASS: $18.47
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE
PER SHARE ($50,061 (DIVIDED BY) 2,710 SHARES)

</TABLE>

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

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS ENDED APRIL 30, 1998 (UNAUDITED)

INVESTMENT INCOME $ 11,299
DIVIDENDS

INTEREST 2,262

13,561

LESS FOREIGN TAXES WITHHELD (1,248)

TOTAL INCOME 12,313

EXPENSES

MANAGEMENT FEE $ 4,635
BASIC FEE

PERFORMANCE ADJUSTMENT 990

TRANSFER AGENT FEES 1,368

DISTRIBUTION FEES 3,125

ACCOUNTING FEES AND EXPENSES 324

NON-INTERESTED TRUSTEES' COMPENSATION 2

CUSTODIAN FEES AND EXPENSES 330

REGISTRATION FEES 103

AUDIT 30

LEGAL 9

REPORT TO SHAREHOLDERS 134

FOREIGN TAX EXPENSE 36

MISCELLANEOUS 5

TOTAL EXPENSES BEFORE REDUCTIONS 11,091

EXPENSE REDUCTIONS (127) 10,964

NET INVESTMENT INCOME 1,349

REALIZED AND UNREALIZED GAIN (LOSS)
NET REALIZED GAIN (LOSS) ON:

INVESTMENT SECURITIES 21,013

FOREIGN CURRENCY TRANSACTIONS (175)

FUTURES CONTRACTS (577) 20,261

CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON:

INVESTMENT SECURITIES 182,367

ASSETS AND LIABILITIES IN FOREIGN CURRENCIES (80)

FUTURES CONTRACTS (129) 182,158

NET GAIN (LOSS) 202,419

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 203,768
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1998 OCTOBER 31,
(UNAUDITED) 1997

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS $ 1,349 $ 9,334
NET INVESTMENT INCOME

NET REALIZED GAIN (LOSS) 20,261 84,440

CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) 182,158 83,254

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 203,768 177,028
FROM OPERATIONS

DISTRIBUTIONS TO SHAREHOLDERS (8,837) (10,798)
FROM NET INVESTMENT INCOME

IN EXCESS OF NET INVESTMENT INCOME (2,489) -

FROM NET REALIZED GAIN (66,916) (42,335)

TOTAL DISTRIBUTIONS (78,242) (53,133)

SHARE TRANSACTIONS - NET INCREASE (DECREASE) 77,446 39,574

TOTAL INCREASE (DECREASE) IN NET ASSETS 202,972 163,469

NET ASSETS

BEGINNING OF PERIOD 1,194,025 1,030,556

END OF PERIOD (INCLUDING UNDER (OVER) DISTRIBUTION OF $ 1,396,997 $ 1,194,025
NET INVESTMENT INCOME OF $(2,488) AND $10,180,
RESPECTIVELY)

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS A
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1998

(UNAUDITED) 1997 1996 D

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

NET ASSET VALUE, BEGINNING OF PERIOD $ 16.89 $ 15.29 $ 14.98

INCOME FROM INVESTMENT OPERATIONS

NET INVESTMENT INCOME E .05 .09 .04

NET REALIZED AND UNREALIZED GAIN (LOSS) 2.71 2.39 .27

TOTAL FROM INVESTMENT OPERATIONS 2.76 2.48 .31

LESS DISTRIBUTIONS

FROM NET INVESTMENT INCOME (.16) (.25) -

IN EXCESS OF NET INVESTMENT INCOME (.05) - -

FROM NET REALIZED GAIN (.96) (.63) -

TOTAL DISTRIBUTIONS (1.17) (.88) -

NET ASSET VALUE, END OF PERIOD $ 18.48 $ 16.89 $ 15.29

TOTAL RETURN B, C 17.45% 16.95% 2.07%

RATIOS AND SUPPLEMENTAL DATA

NET ASSETS, END OF PERIOD (000 OMITTED) $ 8,754 $ 5,001 $ 637

RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.56% A, F 1.90% F 1.16% A, F

RATIO OF EXPENSES TO AVERAGE NET ASSETS AFTER EXPENSE 1.55% A, G 1.89% G 1.16% A
REDUCTIONS

RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS .57% A .53% 1.74% A

PORTFOLIO TURNOVER 62% A 70% 82%

AVERAGE COMMISSION RATE H $ .0078 $ .0111 $ .0133

</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 FOR THE PERIOD SEPTEMBER 3, 1996 (COMMENCEMENT OF SALE OF CLASS A
SHARES) TO OCTOBER 31, 1996.
E NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
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).
H FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS
REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR
SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY
FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES
EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION
RATE STRUCTURES MAY DIFFER.

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS - CLASS T
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1998

(UNAUDITED) 1997 1996 1995 1994 1993
SELECTED PER-SHARE DATA

NET ASSET VALUE, $ 17.02 $ 15.30 $ 13.92 $ 14.06 $ 12.93 $ 9.07
BEGINNING OF PERIOD

INCOME FROM INVESTMENT
OPERATIONS

NET INVESTMENT INCOME .02 D .13 D .19 D, E .07 .01 .03

NET REALIZED AND 2.75 2.38 1.29 (.11) 1.14 3.93
UNREALIZED GAIN (LOSS)

TOTAL FROM INVESTMENT 2.77 2.51 1.48 (.04) 1.15 3.96
OPERATIONS

LESS DISTRIBUTIONS (.12) (.16) (.09) - - (.07)
FROM NET INVESTMENT
INCOME

IN EXCESS OF NET (.04) - - - - -
INVESTMENT INCOME

FROM NET REALIZED GAIN (.96) (.63) (.01) (.02) (.02) (.03) H

IN EXCESS OF NET - - - (.08) - -
REALIZED GAIN

TOTAL DISTRIBUTIONS (1.12) (.79) (.10) (.10) (.02) (.10)

NET ASSET VALUE, $ 18.67 $ 17.02 $ 15.30 $ 13.92 $ 14.06 $ 12.93
END OF PERIOD

TOTAL RETURN B, C 17.33% 17.07% 10.69% (.25)% 8.91% 44.13%

RATIOS AND SUPPLEMENTAL
DATA

NET ASSETS, END OF $ 1,276,247 $ 1,110,936 $ 995,004 $ 741,928 $ 653,774 $ 221,370
PERIOD (000 OMITTED)

RATIO OF EXPENSES TO 1.80% A 1.66% 1.61% 1.90% 2.12% 2.38%
AVERAGE NET ASSETS

RATIO OF EXPENSES TO 1.79% A, F 1.65% F 1.60% F 1.90% 2.12% 2.38%
AVERAGE NET ASSETS
AFTER EXPENSE
REDUCTIONS

RATIO OF NET INVESTMENT .22% A .80% 1.30% 1.01% .05% (.18)%
INCOME TO AVERAGE NET
ASSETS

PORTFOLIO TURNOVER 62% A 70% 82% 47% 34% 42%

AVERAGE COMMISSION $ .0078 $ .0111 $ .0133
RATE G

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 INVESTMENT INCOME PER SHARE REFLECTS A
SPECIAL DIVIDEND WHICH AMOUNTED TO $.04 PER SHARE.
F 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).
G FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND
IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR
SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM
PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED
IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES
MAY DIFFER.
H INCLUDES AMOUNTS DISTRIBUTED FROM NET REALIZED GAINS ON FOREIGN CURRENCY
RELATED TRANSACTIONS TAXABLE AS ORDINARY INCOME.

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS - CLASS B
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1998

(UNAUDITED) 1997 1996 1995 F
SELECTED PER-SHARE DATA

NET ASSET VALUE, BEGINNING OF PERIOD $ 16.69 $ 15.06 $ 13.92 $ 13.89

INCOME FROM INVESTMENT OPERATIONS

NET INVESTMENT INCOME (LOSS) (.02) D .02 D .08 D, E .01

NET REALIZED AND UNREALIZED GAIN (LOSS) 2.68 2.36 1.26 .02

TOTAL FROM INVESTMENT OPERATIONS 2.66 2.38 1.34 .03

LESS DISTRIBUTIONS

FROM NET INVESTMENT INCOME (.10) (.12) (.19) -

IN EXCESS OF NET INVESTMENT INCOME (.03) - - -

FROM NET REALIZED GAIN (.96) (.63) (.01) -

TOTAL DISTRIBUTIONS (1.09) (.75) (.20) -

NET ASSET VALUE, END OF PERIOD $ 18.26 $ 16.69 $ 15.06 $ 13.92

TOTAL RETURN B, C 16.97% 16.41% 9.73% .22%

RATIOS AND SUPPLEMENTAL DATA

NET ASSETS, END OF PERIOD (000 OMITTED) $ 56,122 $ 39,841 $ 18,668 $ 2,999

RATIO OF EXPENSES TO AVERAGE NET ASSETS 2.31% A, G 2.30% 2.37% 1.97% A, G

RATIO OF EXPENSES TO AVERAGE NET ASSETS AFTER 2.30% A, H 2.29% H 2.37% 1.97% A
EXPENSE REDUCTIONS

RATIO OF NET INVESTMENT INCOME (LOSS) TO (.23)% A .15% .53% .94% A
AVERAGE NET ASSETS

PORTFOLIO TURNOVER 62% A 70% 82% 47%

AVERAGE COMMISSION RATE I $ .0078 $ .0111 $ .0133

</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 (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
E INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH
AMOUNTED TO $.04 PER SHARE.
F FOR THE PERIOD JULY 3, 1995 (COMMENCEMENT OF SALE OF CLASS B SHARES)
TO OCTOBER 31, 1995.
G 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).
H 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).
I FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS
REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR
SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY
FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES
EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION
RATE STRUCTURES MAY DIFFER.
FINANCIAL HIGHLIGHTS - CLASS C
SIX MONTHS ENDED
APRIL 30, 1998

(UNAUDITED) E

SELECTED PER-SHARE DATA

NET ASSET VALUE, BEGINNING OF PERIOD $ 17.23

INCOME FROM INVESTMENT OPERATIONS

NET INVESTMENT INCOME D .04

NET REALIZED AND UNREALIZED GAIN (LOSS) 2.47

TOTAL FROM INVESTMENT OPERATIONS 2.51

LESS DISTRIBUTIONS

FROM NET INVESTMENT INCOME (.12)

IN EXCESS OF NET INVESTMENT INCOME (.04)

FROM NET REALIZED GAIN (.96)

TOTAL DISTRIBUTIONS (1.12)

NET ASSET VALUE, END OF PERIOD $ 18.62

TOTAL RETURN B, C 15.59%

RATIOS AND SUPPLEMENTAL DATA

NET ASSETS, END OF PERIOD (000 OMITTED) $ 5,813

RATIO OF EXPENSES TO AVERAGE NET ASSETS 2.30% A, F

RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS .44% A

PORTFOLIO TURNOVER 62% A

AVERAGE COMMISSION RATE G $ .0078

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 NOVEMBER 3, 1997 (COMMENCEMENT OF SALE OF CLASS C
SHARES) TO APRIL 30, 1998.
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 FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS
REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR
SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY
FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES
EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION
RATE STRUCTURES MAY DIFFER.

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1998

(UNAUDITED) 1997 1996 1995 F
SELECTED PER-SHARE DATA

NET ASSET VALUE, BEGINNING OF PERIOD $ 16.92 $ 15.20 $ 13.97 $ 13.89

INCOME FROM INVESTMENT OPERATIONS

NET INVESTMENT INCOME .06 D .22 D .21 D, E .05

NET REALIZED AND UNREALIZED GAIN (LOSS) 2.71 2.36 1.24 .03

TOTAL FROM INVESTMENT OPERATIONS 2.77 2.58 1.45 .08

LESS DISTRIBUTIONS

FROM NET INVESTMENT INCOME (.20) (.23) (.21) -

IN EXCESS OF NET INVESTMENT INCOME (.06) - - -

FROM NET REALIZED GAIN (.96) (.63) (.01) -

TOTAL DISTRIBUTIONS (1.22) (.86) (.22) -

NET ASSET VALUE, END OF PERIOD $ 18.47 $ 16.92 $ 15.20 $ 13.97

TOTAL RETURN B, C 17.54% 17.73% 10.51% .58%

RATIOS AND SUPPLEMENTAL DATA

NET ASSETS, END OF PERIOD (000 OMITTED) $ 50,061 $ 38,247 $ 16,247 $ 1,482

RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.31% A, G 1.17% 1.44% .97% A, G

RATIO OF EXPENSES TO AVERAGE NET ASSETS AFTER 1.30% A, H 1.16% H 1.43% H .97% A
EXPENSE REDUCTIONS

RATIO OF NET INVESTMENT INCOME TO AVERAGE .74% A 1.31% 1.46% 1.94% A
NET ASSETS

PORTFOLIO TURNOVER 62% A 70% 82% 47%

AVERAGE COMMISSION RATE I $ .0078 $ .0111 $ .0133

</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 INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH
AMOUNTED TO $.04 PER SHARE.
F FOR THE PERIOD JULY 3, 1995 (COMMENCEMENT OF SALE OF INSTITUTIONAL
CLASS SHARES) TO OCTOBER 31, 1995.
G 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).
H 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).
I FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS
REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR
SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY
FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES
EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION
RATE STRUCTURES MAY DIFFER.
NOTES TO FINANCIAL STATEMENTS
For the period ended April 30, 1998 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Advisor Overseas 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 require management to
make certain estimates and assumptions at the date of the financial
statements. The following summarizes the significant accounting
policies of the fund:
SECURITY VALUATION. 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. If trading or events occurring in other markets
after the close of the principal market in which securities are traded
is expected to materially affect the value of those securities, then
they are valued at their fair value taking this trading or these
events into account. Fair value is determined in good faith under
consistently applied procedures under the general supervision of the
Board of Trustees. Securities (including restricted securities) for
which quotations are not readily available are valued primarily using
dealer-supplied valuations or at their fair value. 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. Equity securities that have reached the limit for aggregate
foreign ownership may trade at a premium to the local share price. If
the broker-quoted premium is not readily available as a result of
limited share activity, the securities are valued at the last sale
price of the local shares in the principal market in which such
securities are normally traded.
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
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
FOREIGN CURRENCY TRANSLATION - CONTINUED
period end. Purchases and sales of securities, income receipts and
expense payments are translated into U.S. dollars at the prevailing
exchange rate on the respective dates of the transactions.
Net realized gains and losses on foreign currency transactions
represent net gains and losses from sales and maturities of foreign
currency contracts, disposition of foreign currencies, the difference
between the amount of net investment income accrued and the U.S.
dollar amount actually received, and gains and losses between trade
date and settlement on purchases and sales of securities. The effects
of changes in foreign currency exchange rates on investments in
securities are included with the net realized and unrealized gain or
loss on investment securities.
INCOME TAXES. As a qualified regulated investment company under
Subchapter M of the Internal Revenue Code, the fund is not subject to
U.S. federal income taxes to the extent that it distributes
substantially all of its taxable income for its fiscal year. The fund
may be subject to foreign taxes on income 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. Dividend income is recorded on the ex-dividend
date, except certain dividends from foreign securities where the
ex-dividend date may have passed, are recorded as soon as the fund is
informed of the ex-dividend date. Non-cash dividends included in
dividend income, if any, are recorded at the fair market value of the
securities received. Interest income, which includes accretion of
original issue discount, is accrued as earned. Investment income is
recorded net of foreign taxes withheld where recovery of such taxes is
uncertain.
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 recorded on the
ex-dividend date. Income dividends and capital gain distributions are
declared separately for each class.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
Income and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles. These differences, which may result in
distribution reclassifications, are primarily due to differing
treatments for futures transactions, foreign currency transactions,
passive foreign investment companies (PFIC), 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.
Distributions in excess of net investment income and accumulated
undistributed net realized gain (loss) on investments and foreign
currency transactions may include temporary book and tax basis
differences 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.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission (the SEC), the fund, along with
other affiliated entities of FMR, may transfer uninvested cash
balances into one or more joint trading accounts. These balances are
invested in one or more repurchase agreements 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.
2. OPERATING POLICIES - CONTINUED
TAXABLE CENTRAL CASH FUND. Pursuant to an Exemptive Order issued by
the SEC, the fund may invest in the Taxable Central Cash Fund (the
Cash Fund) managed by Fidelity Investments Money Management, Inc.,
(formerly FMR Texas, Inc.) an affiliate of FMR. The Cash Fund is an
open-end money market fund available only to investment companies and
other accounts managed by FMR and its affiliates. The Cash Fund seeks
preservation of capital, liquidity, and current income by investing in
U.S. Treasury securities and repurchase agreements for these
securities. Income distributions from the Cash Fund are declared daily
and paid monthly from net interest income. Income distributions earned
by the fund are recorded as interest income in the accompanying
financial statements.
FUTURES CONTRACTS. The fund may use futures contracts to manage its
exposure to the stock market and to fluctuations in currency values.
Buying futures tends to increase the fund's exposure to the underlying
instrument, while selling futures tends to decrease the fund's
exposure to the underlying instrument or hedge other fund investments.
Futures contracts involve, to varying degrees, risk of loss in excess
of the futures variation margin reflected in the Statement of Assets
and Liabilities. The underlying face amount at value of any open
futures contracts at period end is shown in the schedule of
investments under the caption "Futures Contracts." 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 or if the counterparties do not perform under
the contracts' terms. Gains (losses) are realized upon the expiration
or closing of the futures contracts. Futures contracts are valued at
the settlement price established each day by the board of trade or
exchange on which they are traded.
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).
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $355,757,000 and $384,758,000, respectively, of which U.S.
government and government agency obligations aggregated $1,383,000 and
$1,250,000, respectively.
The market value of futures contracts opened and closed during the
period amounted to $22,917,000 and $17,332,000, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a
monthly basic fee that is calculated on the basis of a group fee rate
plus a fixed individual fund fee rate applied to the average net
assets of the fund. The group fee rate is the weighted average of a
series of rates and is based on the monthly average net assets of all
the mutual funds advised by FMR. The rates ranged from .2500% to
.5200% for the period. The annual individual fund fee rate is .45%. In
the event that these rates were lower than the contractual rates in
effect during the period, FMR voluntarily implemented the above rates,
as they resulted in the same or a lower management fee. The basic fee
is subject to a performance adjustment (up to a maximum of
(plus/minus).20% of the fund's average net assets over the performance
period) based on the investment performance of the asset-weighted
average return of all classes as compared to the appropriate index
over a specified period of time. For the period, the management fee
was equivalent to an annualized rate of .92% of average net assets
after the performance adjustment.
SUB-ADVISER FEE. FMR, on behalf of the fund, entered into sub-advisory
agreements with Fidelity Management & Research (U.K.) Inc., Fidelity
Management & Research (Far East) Inc., Fidelity International
Investment Advisors (FIIA), and Fidelity Investments Japan Limited
(FIJ). In addition, FIIA entered into a sub-advisory agreement with
its subsidiary, Fidelity International Investment Advisors (U.K.)
Limited (FIIAL U.K.). Under the sub-advisory arrangements, FMR may
receive investment advice and research services and may grant the
sub-advisers investment management authority to buy and sell
securities. FMR pays its sub-advisers either a portion of its
management fee or a fee based on costs incurred for these services.
FIIA pays FIIAL U.K. a fee based on costs incurred for either service.
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. For the period, this fee was based on the following
annual rates of the average net assets of each applicable class:
CLASS A .25%

CLASS T .50%

CLASS B 1.00% *

CLASS C 1.00% *

* .75% REPRESENTS A DISTRIBUTION FEE AND .25% REPRESENTS A SHAREHOLDER
SERVICE FEE.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
DISTRIBUTION AND SERVICE PLAN - CONTINUED
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 PAID TO RETAINED
FDC INVESTMENT BY FDC
PROFESSIONALS

CLASS A $ 8,000 $ 8,000 $ -

CLASS T 2,879,000 2,832,000 47,000

CLASS B 227,000 57,000 170,000

CLASS C 11,000 0 11,000

$ 3,125,000 $ 2,897,000 $ 228,000

Under the Plans, FMR 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 $ 5,000

CLASS T 156,000

CLASS B 23,000

CLASS C 5,000

$ 189,000

SALES LOAD. FDC receives a front-end sales charge of up to 5.75% for
selling Class A shares, and 3.50% for selling Class T shares of the
fund. FDC receives the proceeds of contingent deferred sales charges
levied on Class B share redemptions occurring within six years of
purchase 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% 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. In addition, purchases of Class A and
Class T shares that were subject to a finder's fee bear a contingent
deferred sales charge on assets that do not remain in the fund for at
least one year. The Class A and Class T contingent deferred sales
charge is based on 0.25% 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.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
SALES LOAD - CONTINUED
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 PAID TO
FDC INVESTMENT
PROFESSIONALS

CLASS A $ 49,000 $ 30,000

CLASS T 304,000 210,000

CLASS B 63,000 0*

CLASS C 400 0*

$ 416,400 $ 240,000

* 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.
TRANSFER AGENT FEES. Fidelity Investments Institutional Operations
Company, Inc., (FIIOC), an affiliate of FMR, is the transfer, dividend
disbursing and shareholder servicing agent for each class of the
fund(collectively referred to as the transfer agent) for the fund's
Class A, Class T, Class B, Class C and Institutional Class. FIIOC
receives 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, except proxy statements. For the period,
the following amounts were paid to FIIOC:
AMOUNT % OF
AVERAGE
NET ASSETS

CLASS A $ 11,000 .34*

CLASS T 1,251,000 .22*

CLASS B 68,000 .31*

CLASS C 3,000 .27*

INSTITUTIONAL CLASS 35,000 .17*

$ 1,368,000

* ANNUALIZED
ACCOUNTING FEES. Fidelity Service Company, Inc. (FSC), an affiliate of
FMR, maintains the fund's accounting records. The fee is based on the
level of average net assets for the month plus out-of-pocket expenses.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
BROKERAGE COMMISSIONS. The fund placed a portion of its portfolio
transactions with brokerage firms which are affiliates of FMR. The
commissions paid to these affiliated firms were $34,000 for the
period.
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 1.55% $ 11,000

CLASS T 1.80% -

CLASS B 2.30% 27,000

CLASS C 2.30% 14,000

INSTITUTIONAL CLASS 1.30% 19,000

$ 71,000

Effective November 1, 1997, Class A, Class T, Class B, and the
Institutional Class' expense limitations were changed from 2.00% to
1.55%, 2.25% to 1.80%, 2.75% to 2.30% and from 1.75% to 1.30% of each
class' average net assets, respectively.
FMR has directed certain portfolio trades to brokers who paid a
portion of the fund's expenses. For the period, the fund's expenses
were reduced by $56,000 under this arrangement.
6. DISTRIBUTIONS TO SHAREHOLDERS.
Distributions to shareholders of each class were as follows:
AMOUNTS IN THOUSANDS SIX MONTHS ENDED APRIL 30,

1998 A 1997

FROM NET INVESTMENT INCOME

CLASS A $ 53 $ 15

CLASS T 8,064 10,326

CLASS B 250 155

CLASS C 2 -

INSTITUTIONAL CLASS 468 302

TOTAL $ 8,837 $ 10,798

IN EXCESS OF NET INVESTMENT INCOME

CLASS A $ 15 $ -

CLASS T 2,270 -

CLASS B 71 -

CLASS C 1 -

INSTITUTIONAL CLASS 132 -

TOTAL $ 2,489 $ -

FROM NET REALIZED GAIN

CLASS A $ 311 $ 38

CLASS T 62,025 40,659

CLASS B 2,341 812

CLASS C 27 -

INSTITUTIONAL CLASS 2,212 826

TOTAL $ 66,916 $ 42,335

$ 78,242 $ 53,133

A DISTRIBUTIONS FOR CLASS C ARE FOR THE PERIOD NOVEMBER 3, 1997
(COMMENCEMENT OF SALE OF SHARES) TO APRIL 30, 1998.
7. SHARE TRANSACTIONS.
Share transactions for each class of shares were as follows:

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

AMOUNTS IN THOUSANDS SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31,

1998 A 1997 1998 A 1997

CLASS A 305 333 $ 5,209 $ 5,654
SHARES SOLD

REINVESTMENT OF DISTRIBUTIONS 23 3 371 52

SHARES REDEEMED (150) (82) (2,533) (1,418)

NET INCREASE (DECREASE) 178 254 $ 3,047 $ 4,288

CLASS T 20,172 29,400 $ 344,884 $ 487,493
SHARES SOLD

REINVESTMENT OF DISTRIBUTIONS 4,208 3,178 67,693 47,914

SHARES REDEEMED (21,276) (32,358) (362,440) (538,266)

NET INCREASE (DECREASE) 3,104 220 $ 50,137 $ (2,859)

CLASS B 1,227 1,517 $ 20,535 $ 25,441
SHARES SOLD

REINVESTMENT OF DISTRIBUTIONS 153 63 2,417 931

SHARES REDEEMED (694) (432) (11,465) (7,271)

NET INCREASE (DECREASE) 686 1,148 $ 11,487 $ 19,101

CLASS C 378 - $ 6,515 $ -
SHARES SOLD

REINVESTMENT OF DISTRIBUTIONS 1 - 16 -

SHARES REDEEMED (67) - (1,175) -

NET INCREASE (DECREASE) 312 - $ 5,356 $ -

INSTITUTIONAL CLASS 800 2,508 $ 13,508 $ 41,330
SHARES SOLD

REINVESTMENT OF DISTRIBUTIONS 146 68 2,327 1,019

SHARES REDEEMED (497) (1,384) (8,416) (23,305)

NET INCREASE (DECREASE) 449 1,192 $ 7,419 $ 19,044

</TABLE>

A DISTRIBUTIONS SHARE TRANSACTIONS FOR CLASS C ARE FOR THE PERIOD
NOVEMBER 3, 1997 (COMMENCEMENT OF SALE OF SHARES) TO APRIL 30, 1998.
8. REGISTRATION FEES.
For the period, each class paid the following amounts to register its
shares for sale:
REGISTRATION
FEES

CLASS A $ 8,000

CLASS T 35,000

CLASS B 10,000

CLASS C 14,000

INSTITUTIONAL CLASS 36,000

$ 103,000

INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
INVESTMENT SUB-ADVISERS
Fidelity Management & Research (U.K.) Inc., London, England
Fidelity Management & Research
(Far East) Inc., Tokyo, Japan
Fidelity International Investment Advisors
Fidelity International Investment Advisors (U.K.) Limited
Fidelity Investments Japan Limited
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Richard A. Spillane, Jr., Vice President
Richard Mace, Jr., 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, N.A.
New York, 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
MONEY MARKET FUNDS
Prime Fund
Treasury Fund
Tax-Exempt Fund

(REGISTERED TRADEMARK)

(2_FIDELITY_LOGOS)FIDELITY ADVISOR

(REGISTERED TRADEMARK)
OVERSEAS
FUND - INSTITUTIONAL CLASS
SEMIANNUAL REPORT
APRIL 30, 1998
CONTENTS

PRESIDENT'S MESSAGE 3 NED JOHNSON ON INVESTING STRATEGIES.

PERFORMANCE 4 HOW THE FUND HAS DONE OVER TIME.

FUND TALK 6 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 25 STATEMENTS OF ASSETS AND LIABILITIES,
OPERATIONS, AND CHANGES IN NET ASSETS,
AS WELL AS FINANCIAL HIGHLIGHTS.

NOTES 34 NOTES TO THE FINANCIAL STATEMENTS.

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). The initial offering of Institutional Class shares took place
on July 3, 1995. Institutional Class shares are sold to eligible
investors without a sales load or 12b-1 fee. Returns prior to July 3,
1995 are those of Class T, the original class of the fund, and reflect
Class T's prior 0.65% 12b-1 fee. If Fidelity had not reimbursed
certain class expenses, the total returns would have been lower. Prior
to December 1, 1992, Fidelity Advisor Overseas Fund operated under a
different investment objective. Accordingly, the fund's historical
performance may not represent its current investment policies.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED APRIL 30, 1998 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

FIDELITY ADV OVERSEAS - INST CL 17.54% 25.64% 88.94% 123.01%

MSCI EAFE 15.56% 19.17% 62.18% 85.90%

INTERNATIONAL FUNDS AVERAGE 16.25% 20.89% 80.98% N/A

CUMULATIVE TOTAL RETURNS show Institutional Class performance in
percentage terms over a set period - in this case, six months, one
year, five years or since the fund started on April 23, 1990. 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 the performance of the
Morgan Stanley Capital International Europe, Australasia, Far East
Index (MSCI EAFE Index) - a market capitalization weighted, unmanaged
index of over 1,000 foreign stocks. To measure how Institutional
Class' performance stacked up against its peers, you can compare it to
the international funds average, which reflects the performance of
mutual funds with similar objectives tracked by Lipper Analytical
Services, Inc. The past six months average represents a peer group of
503 mutual funds. These benchmarks include reinvested dividends and
capital gains, if any, and exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED APRIL 30, 1998 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

FIDELITY ADV OVERSEAS - INST CL 25.64% 13.57% 10.51%

MSCI EAFE 19.17% 10.15% 8.03%

INTERNATIONAL FUNDS AVERAGE 20.89% 12.41% N/A

AVERAGE ANNUAL TOTAL RETURNS take Institutional Class' cumulative
return and show you what would have happened if Institutional Class
shares had performed at a constant rate each year.
$10,000 OVER LIFE OF FUND
FA Overseas -CL I MS EAFE Index (Net)
00655 MS001
1990/04/23 10000.00 10000.00
1990/04/30 9890.00 9870.12
1990/05/31 10320.00 10996.32
1990/06/30 10840.00 10899.46
1990/07/31 11480.00 11052.99
1990/08/31 10110.00 9979.65
1990/09/30 9250.00 8588.84
1990/10/31 9550.00 9927.15
1990/11/30 9560.00 9341.56
1990/12/31 9467.28 9492.89
1991/01/31 9699.18 9799.94
1991/02/28 10132.72 10850.48
1991/03/31 9568.11 10199.10
1991/04/30 9558.02 10299.26
1991/05/31 9568.11 10406.73
1991/06/30 8852.26 9642.03
1991/07/31 9356.38 10115.76
1991/08/31 9497.53 9910.33
1991/09/30 9991.56 10468.87
1991/10/31 9860.49 10617.27
1991/11/30 9608.44 10121.61
1991/12/31 10109.05 10644.32
1992/01/31 10139.74 10416.96
1992/02/29 10375.08 10044.12
1992/03/31 10057.89 9381.04
1992/04/30 10579.71 9425.64
1992/05/31 11009.45 10056.55
1992/06/30 10835.51 9579.54
1992/07/31 10416.00 9334.37
1992/08/31 10129.51 9919.83
1992/09/30 9976.03 9723.94
1992/10/31 9280.27 9213.87
1992/11/30 9157.49 9300.58
1992/12/31 9620.40 9348.68
1993/01/31 10106.59 9347.54
1993/02/28 10323.83 9629.89
1993/03/31 10954.84 10469.29
1993/04/30 11803.09 11462.85
1993/05/31 12113.43 11704.95
1993/06/30 11782.40 11522.33
1993/07/31 12361.70 11925.66
1993/08/31 13178.91 12569.45
1993/09/30 13044.43 12286.52
1993/10/31 13375.46 12665.16
1993/11/30 12858.23 11558.09
1993/12/31 13645.20 12392.67
1994/01/31 14546.59 13440.41
1994/02/28 14349.73 13403.18
1994/03/31 13987.11 12825.89
1994/04/30 14588.03 13370.08
1994/05/31 14318.65 13293.32
1994/06/30 14204.68 13481.18
1994/07/31 14567.31 13610.83
1994/08/31 14702.00 13933.07
1994/09/30 14246.13 13494.24
1994/10/31 14567.31 13943.59
1994/11/30 13997.47 13273.46
1994/12/31 13915.13 13356.58
1995/01/31 13340.98 12843.48
1995/02/28 13372.30 12806.62
1995/03/31 13789.86 13605.38
1995/04/30 14196.98 14117.06
1995/05/31 14353.56 13948.78
1995/06/30 14457.95 13704.16
1995/07/31 15094.73 14557.33
1995/08/31 14677.17 14002.02
1995/09/30 14865.07 14275.48
1995/10/31 14583.22 13891.75
1995/11/30 14729.37 14278.28
1995/12/31 15182.32 14853.55
1996/01/31 15447.38 14914.53
1996/02/29 15479.18 14964.95
1996/03/31 15691.23 15282.75
1996/04/30 16115.31 15727.07
1996/05/31 16094.11 15437.66
1996/06/30 16200.13 15524.55
1996/07/31 15723.03 15070.80
1996/08/31 15829.05 15103.83
1996/09/30 16284.95 15505.07
1996/10/31 16115.31 15346.41
1996/11/30 16963.49 15957.02
1996/12/31 17055.42 15751.75
1997/01/31 17066.64 15203.59
1997/02/28 17447.89 15455.97
1997/03/31 17604.88 15514.70
1997/04/30 17750.65 15600.03
1997/05/31 18860.77 16618.24
1997/06/30 19858.75 17537.23
1997/07/31 20553.97 17823.44
1997/08/31 19006.54 16494.71
1997/09/30 20408.20 17421.22
1997/10/31 18972.90 16086.58
1997/11/30 18905.62 15925.71
1997/12/31 19065.21 16067.61
1998/01/31 19668.92 16805.43
1998/02/28 20779.75 17886.86
1998/03/31 21709.47 18441.00
1998/04/30 22301.10 18590.00
IMATRL PRASUN SHR__CHT 19980430 19980611 095943 R00000000000100
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Advisor Overseas Fund - Institutional Class on
April 23, 1990, when the fund started. As the chart shows, by April
30, 1998, the value of the investment would have grown to $22,301 - a
123.01% increase on the initial investment. For comparison, look at
how the MSCI EAFE Index did over the same period. With dividends
reinvested, the same $10,000 would have grown to $18,590 - a 85.90%
increase.
UNDERSTANDING
PERFORMANCE
Many markets around the globe
offer the potential for significant
growth over time; however,
investing in foreign markets
means assuming greater risks
than investing in the United
States. Factors like changes in
a country's financial markets,
its local political and economic
climate, and the fluctuating value
of its currency create these risks.
For these reasons an
international fund's performance
may be more volatile than a
fund that invests exclusively in
the United States. Past
performance is no guarantee of
future results and you may have
a gain or loss when you sell
your shares.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
During the six-months that ended
April 30, 1998, some of the world's
financial markets enjoyed robust
growth, while others continued to
unravel. For the period, the
Morgan Stanley Capital
International EAFE Index - which
measures stock performance in
Europe, Australia and the Far East
- - returned 15.56%. Most
economies in Europe continued to
thrive amidst an environment of
relatively benign inflation and
reduced interest rates, as many
countries prepared for the advent
of the European Monetary Union
in January 1999. Many
corporations followed the path to
efficiency through restructuring
and merger and acquisition
activity. Strong individual
performers included Portugal,
Spain and Italy. Latin American
markets struggled, however, as
economic turmoil in Southeast
Asia prompted a massive
sell-off of most emerging-market
stocks at the beginning of the
period. The Brazilian market
rebounded, performing fairly well
during the period after interest
rates fell, but Mexico and
Venezuela were victims of
plummeting oil prices at the end of
1997. Southeast Asian markets -
the origin of most of the volatility in
emerging markets - performed
poorly. The depreciation of many
currencies in the region prompted
central banks to dramatically raise
interest rates, slowing economies
by making borrowing more
expensive. Japan suffered from
sharply falling stock prices and
depreciating currencies, while the
failure of several Japanese
financial firms raised concerns
about widespread corporate
bankruptcies. Hong Kong fared
significantly better than other
Asian markets because of its
more mature and less volatile
nature.
An interview with Richard Mace, Portfolio Manager of Fidelity Advisor
Overseas Fund
Q. HOW DID THE FUND PERFORM, RICK?
A. It performed well. For the six months that ended April 30, 1998,
the fund's Institutional Class shares returned 17.54%, topping the
15.56% return of the Morgan Stanley Capital International Europe,
Australasia and Far East (EAFE) Index, and the 16.25% return for the
international funds average tracked by Lipper Analytical Services. For
the 12 months that ended April 30, 1998, the fund's Institutional
Class shares returned 25.64%, compared to 19.17% and 20.89% for the
EAFE index and Lipper peer group, respectively.
Q. WHAT FACTORS HELPED THE FUND BEAT THE INDEX AND THE LIPPER AVERAGE
OVER THE PAST SIX MONTHS?
A. Almost all of the fund's outperformance in the period was due to
stock selection. European financial positions made particularly strong
contributions to performance, as low interest rates, benign inflation,
improving economies and surging securities markets provided a
favorable environment for banks and insurers. In addition, merger and
acquisition activity within this sector continued to boost valuations.
Particular standouts included companies that were among the fund's 25
largest holdings, including Swiss banking companies Credit Suisse and
Julius Baer, as well as French bank Societe Generale Paris and
Germany's BHF Bank. Insurers also aided performance and included Dutch
company ING Groep and Sweden's Skandia Foersaekrings, as well as Axa
and Union Assurances Federales in France. Telecommunications stocks
also were among the fund's most stellar performers. In addition to
recent merger and consolidation activity, the cellular market in both
the United Kingdom and Italy was particularly strong, and fund
holdings of Britain's Vodafone Group and Italy's Telecom Italia and
Telecom Italia Mobile were among the fund's best performers.
Q. LET'S TAKE A LOOK AT THE FUND'S TOP FIVE HOLDINGS. FOUR OF THEM
WERE TOP FIVE HOLDINGS SIX MONTHS AGO. IS THAT STABILITY TYPICAL OF
YOUR STRATEGY?
A. Yes, it is. I don't have a particular holding period in mind when I
choose investments for the fund. I start by looking for undervalued
stocks of companies with favorable fundamentals. If a company's
business prospects continue as hoped and its stock's valuation doesn't
rise above a reasonable range, I tend to hold onto it for some time.
This is the kind of careful analytical process I use when selecting
stocks. I'll stay with a stock if it's the right stock to own.
Q. WHICH STOCKS PROVIDED THE BEST PERFORMANCE FOR THE FUND DURING THE
PAST SIX MONTHS?
A. Alcatel Alsthom was one of the top contributors to performance.
This is a French electronics equipment company with a superb
management team. The team has been concentrating on the divestiture of
peripheral businesses and non-core assets, instead aiming its focus on
its core, high-return businesses. An enormous increase in free cash
flow has resulted from this program, enabling the company to reduce
debt and thus improve its balance sheet. One of its main businesses is
in the manufacture of telecommunications equipment, a very fast
growing sector of late. British cellular company Vodafone was another
major holding in the telecommunications sector that boosted
performance. Vodafone has been growing its business at a pace that has
exceeded expectations in both magnitude and sustainability. Also among
the fund's top performers for the period was the British-based
business-services company Rentokil, which provides a wide range of
services to businesses worldwide, such as cleaning, maintenance and
landscaping. I bought it because it was cheap and its businesses were
growing at a very rapid rate.
Q. WHICH INVESTMENTS DIDN'T TURN OUT AS WELL AS YOU WOULD HAVE LIKED?
A. Japanese financial holdings hurt performance the most. With the
Japanese economy remaining stagnant and continued concerns about asset
quality, banks were especially hard hit. Securities brokers were hurt
by the equity market's poor performance because their fortunes are
highly correlated with the level of market activity. Similarly, real
estate company holdings also suffered from the general decline in the
domestic economy, despite some signs that real estate prices might be
bottoming. Among the fund's financial holdings most hurt by these
events were Long Term Credit Bank, Daiwa Securities and Sumitomo
Realty & Development Company.
Q. RICK, LET'S TAKE A LOOK AT THE FUND'S COUNTRY WEIGHTINGS.
A. The fund's country and regional weightings are a result of my
stock-picking process. I don't try to pick markets that I feel will
outperform. Instead, I try to find good companies with good growth
prospects that are selling at reasonable valuations, wherever that
takes us. However, looking more closely at the question, the Japanese
component of the fund continued to decline over the past six months;
and at the end of the period the fund remained significantly
underweighted in that market relative to the Japanese component in the
EAFE index. The decline in the Japanese weighting was due mostly to
the effect of changes in the relative valuations elsewhere in the
portfolio. Most European positions experienced strong price
appreciation, while valuations in the Japanese component declined over
the period. Relative to the index, the fund was overweighted in
Europe, especially in France, the Netherlands, Ireland, Sweden,
Finland and Norway, while it was underweighted in the U.K., Germany,
Switzerland, Spain and Italy. Emerging market exposure was modestly
increased from 3.7% to 4.1% over the period, with most of the
additions centered in Brazil. The fund continued to be underweighted
in the Southeast Asian markets, which accounted for only 0.2% of total
fund assets.
Q. WHAT HAS BEEN YOUR STRATEGY IN TERMS OF EMERGING MARKETS?
A. With the exception of Latin America and South Africa, I have
generally avoided the emerging markets as I could find few situations
where the returns seemed to justify the economic, political and
currency risks that have plagued some of these markets. However,
significant additions were made to holdings of Brazilian telephone
company Telebras that appeared to be cheaply priced. This company was
the fund's 11th largest position at the end of April.
Q. LOOKING OUT OVER THE NEAR FUTURE, WHAT'S YOUR OUTLOOK?
A. I think the European economies will continue to improve. However,
stock selection will be especially critical. Company earnings must
come through as expected in order to justify the lofty stock
valuations that the markets have placed on them. If earnings
disappoint, we run the risk of a stock correction. In Japan, I am
continuing to look for signs of an improvement in the economy and have
pinpointed a number of companies that could be early beneficiaries of
a turnaround as candidates for purchase. I also will be keeping close
watch on the emerging markets, where we are beginning to see some
significant improvement in valuations. However, unlike my approach to
investing in the developed markets, country and regional factors play
as much of a role in my decision making as stock selection. In
general, emerging markets are more volatile than developed markets.
Accordingly, when I make an investment in a stock in an emerging
market, I expect a higher level of return to compensate shareholders
for the higher level of risk there. Up to this point, I have not found
many stocks outside of Latin America and South Africa that meet these
criteria.
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.

<TABLE>
<CAPTION>
<S> <C> <C>
TOP FIVE STOCKS AS OF APRIL 30, 1998
% OF FUND'S % OF FUND'S INVESTMENTS
INVESTMENTS IN THESE STOCKS
6 MONTHS AGO

ALCATEL ALSTHOM COMPAGNIE GENERALE 2.3 2.1
D'ELECTRICITE SA (FRANCE, ELECTRICAL EQUIPMENT)

PHILIPS ELECTRONICS NV (BEARER) 2.0 1.9
(NETHERLANDS, ELECTRICAL EQUIPMENT)

TOTAL SA CLASS B (FRANCE, OIL & GAS) 2.0 2.3

NOVARTIS AG (REG.) (SWITZERLAND, DRUGS 1.8 2.1
& PHARMACEUTICALS)

CREDIT SUISSE GROUP (REG.) (SWITZERLAND, BANKS) 1.4 1.3

</TABLE>

TOP FIVE MARKET SECTORS AS OF APRIL 30, 1998
% OF FUND'S % OF FUND'S INVESTMENTS
INVESTMENTS IN THESE MARKET SECTORS
6 MONTHS AGO

FINANCE 20.6 16.9

HEALTH 9.0 10.2

BASIC INDUSTRIES 8.5 10.1

UTILITIES 8.3 7.5

ENERGY 7.3 7.7

TOP FIVE COUNTRIES AS OF APRIL 30, 1998
(EXCLUDING CASH EQUIVALENTS) % OF FUND'S % OF FUND'S INVESTMENTS
INVESTMENTS IN THESE COUNTRIES
6 MONTHS AGO

JAPAN 16.3 21.0

UNITED KINGDOM 14.9 15.8

FRANCE 13.5 12.3

NETHERLANDS 8.8 8.6

SWITZERLAND 5.9 5.0

SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENT IN SECURITIES

<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF ASSETS AND LIABILITIES
AMOUNTS IN THOUSANDS APRIL 30, 1998 (UNAUDITED)

ASSETS

INVESTMENT IN SECURITIES, AT VALUE (COST $1,050,646) - $ 1,382,100
SEE ACCOMPANYING SCHEDULE

RECEIVABLE FOR INVESTMENTS SOLD 18,045

RECEIVABLE FOR FUND SHARES SOLD 5,146

DIVIDENDS RECEIVABLE 6,115

INTEREST RECEIVABLE 408

RECEIVABLE FOR DAILY VARIATION ON FUTURES CONTRACTS 123

OTHER RECEIVABLES 16

PREPAID EXPENSES 7

TOTAL ASSETS 1,411,960

LIABILITIES

PAYABLE FOR INVESTMENTS PURCHASED $ 10,568

PAYABLE FOR FUND SHARES REDEEMED 2,214

DISTRIBUTIONS PAYABLE 12

ACCRUED MANAGEMENT FEE 1,072

DISTRIBUTIONS FEES PAYABLE 577

OTHER PAYABLES AND ACCRUED EXPENSES 520

TOTAL LIABILITIES 14,963

NET ASSETS $ 1,396,997

NET ASSETS CONSIST OF:

PAID IN CAPITAL $ 1,049,070

DISTRIBUTION IN EXCESS OF NET INVESTMENT INCOME (2,488)

ACCUMULATED UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON 19,958
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS

NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS 330,457
AND ASSETS AND LIABILITIES IN FOREIGN CURRENCIES

NET ASSETS $ 1,396,997

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF ASSETS AND LIABILITIES - CONTINUED
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNTS) APRIL 30, 1998 (UNAUDITED)

CALCULATION OF MAXIMUM OFFERING PRICE $18.48
CLASS A:
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
($8,754 (DIVIDED BY) 473.63 SHARES)

MAXIMUM OFFERING PRICE PER SHARE (100/94.25 OF $18.48) $19.61

CLASS T: $18.67
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
($1,276,247 (DIVIDED BY) 68,367 SHARES)

MAXIMUM OFFERING PRICE PER SHARE (100/96.50 OF $18.67) $19.35

CLASS B: $18.26
NET ASSET VALUE AND OFFERING PRICE PER SHARE
($56,122 (DIVIDED BY) 3,073 SHARES) A

CLASS C: $18.62
NET ASSET VALUE AND OFFERING PRICE
PER SHARE ($5,813 (DIVIDED BY) 312.22 SHARES) A

INSTITUTIONAL CLASS: $18.47
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE
PER SHARE ($50,061 (DIVIDED BY) 2,710 SHARES)

</TABLE>

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

<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS SIX MONTHS ENDED APRIL 30, 1998 (UNAUDITED)

INVESTMENT INCOME $ 11,299
DIVIDENDS

INTEREST 2,262

13,561

LESS FOREIGN TAXES WITHHELD (1,248)

TOTAL INCOME 12,313

EXPENSES

MANAGEMENT FEE $ 4,635
BASIC FEE

PERFORMANCE ADJUSTMENT 990

TRANSFER AGENT FEES 1,368

DISTRIBUTION FEES 3,125

ACCOUNTING FEES AND EXPENSES 324

NON-INTERESTED TRUSTEES' COMPENSATION 2

CUSTODIAN FEES AND EXPENSES 330

REGISTRATION FEES 103

AUDIT 30

LEGAL 9

REPORT TO SHAREHOLDERS 134

FOREIGN TAX EXPENSE 36

MISCELLANEOUS 5

TOTAL EXPENSES BEFORE REDUCTIONS 11,091

EXPENSE REDUCTIONS (127) 10,964

NET INVESTMENT INCOME 1,349

REALIZED AND UNREALIZED GAIN (LOSS)
NET REALIZED GAIN (LOSS) ON:

INVESTMENT SECURITIES 21,013

FOREIGN CURRENCY TRANSACTIONS (175)

FUTURES CONTRACTS (577) 20,261

CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON:

INVESTMENT SECURITIES 182,367

ASSETS AND LIABILITIES IN FOREIGN CURRENCIES (80)

FUTURES CONTRACTS (129) 182,158

NET GAIN (LOSS) 202,419

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 203,768
FROM OPERATIONS

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
AMOUNTS IN THOUSANDS SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1998 OCTOBER 31,
(UNAUDITED) 1997

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS $ 1,349 $ 9,334
NET INVESTMENT INCOME

NET REALIZED GAIN (LOSS) 20,261 84,440

CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) 182,158 83,254

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 203,768 177,028
FROM OPERATIONS

DISTRIBUTIONS TO SHAREHOLDERS (8,837) (10,798)
FROM NET INVESTMENT INCOME

IN EXCESS OF NET INVESTMENT INCOME (2,489) -

FROM NET REALIZED GAIN (66,916) (42,335)

TOTAL DISTRIBUTIONS (78,242) (53,133)

SHARE TRANSACTIONS - NET INCREASE (DECREASE) 77,446 39,574

TOTAL INCREASE (DECREASE) IN NET ASSETS 202,972 163,469

NET ASSETS

BEGINNING OF PERIOD 1,194,025 1,030,556

END OF PERIOD (INCLUDING UNDER (OVER) DISTRIBUTION OF $ 1,396,997 $ 1,194,025
NET INVESTMENT INCOME OF $(2,488) AND $10,180,
RESPECTIVELY)

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C>
FINANCIAL HIGHLIGHTS - CLASS A
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1998

(UNAUDITED) 1997 1996 D
SELECTED PER-SHARE DATA

NET ASSET VALUE, BEGINNING OF PERIOD $ 16.89 $ 15.29 $ 14.98

INCOME FROM INVESTMENT OPERATIONS

NET INVESTMENT INCOME E .05 .09 .04

NET REALIZED AND UNREALIZED GAIN (LOSS) 2.71 2.39 .27

TOTAL FROM INVESTMENT OPERATIONS 2.76 2.48 .31

LESS DISTRIBUTIONS

FROM NET INVESTMENT INCOME (.16) (.25) -

IN EXCESS OF NET INVESTMENT INCOME (.05) - -

FROM NET REALIZED GAIN (.96) (.63) -

TOTAL DISTRIBUTIONS (1.17) (.88) -

NET ASSET VALUE, END OF PERIOD $ 18.48 $ 16.89 $ 15.29

TOTAL RETURN B, C 17.45% 16.95% 2.07%

RATIOS AND SUPPLEMENTAL DATA

NET ASSETS, END OF PERIOD (000 OMITTED) $ 8,754 $ 5,001 $ 637

RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.56% A, F 1.90% F 1.16% A, F

RATIO OF EXPENSES TO AVERAGE NET ASSETS AFTER EXPENSE 1.55% A, G 1.89% G 1.16% A
REDUCTIONS

RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS .57% A .53% 1.74% A

PORTFOLIO TURNOVER 62% A 70% 82%

AVERAGE COMMISSION RATE H $ .0078 $ .0111 $ .0133

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS - CLASS T
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1998

(UNAUDITED) 1997 1996 1995 1994 1993
SELECTED PER-SHARE DATA

NET ASSET VALUE, $ 17.02 $ 15.30 $ 13.92 $ 14.06 $ 12.93 $ 9.07
BEGINNING OF PERIOD

INCOME FROM INVESTMENT
OPERATIONS

NET INVESTMENT INCOME .02 D .13 D .19 D, E .07 .01 .03

NET REALIZED AND 2.75 2.38 1.29 (.11) 1.14 3.93
UNREALIZED GAIN (LOSS)

TOTAL FROM INVESTMENT 2.77 2.51 1.48 (.04) 1.15 3.96
OPERATIONS

LESS DISTRIBUTIONS (.12) (.16) (.09) - - (.07)
FROM NET INVESTMENT
INCOME

IN EXCESS OF NET (.04) - - - - -
INVESTMENT INCOME

FROM NET REALIZED GAIN (.96) (.63) (.01) (.02) (.02) (.03) H

IN EXCESS OF NET - - - (.08) - -
REALIZED GAIN

TOTAL DISTRIBUTIONS (1.12) (.79) (.10) (.10) (.02) (.10)

NET ASSET VALUE, $ 18.67 $ 17.02 $ 15.30 $ 13.92 $ 14.06 $ 12.93
END OF PERIOD

TOTAL RETURN B, C 17.33% 17.07% 10.69% (.25)% 8.91% 44.13%

RATIOS AND SUPPLEMENTAL DATA

NET ASSETS, END OF $ 1,276,247 $ 1,110,936 $ 995,004 $ 741,928 $ 653,774 $ 221,370
PERIOD (000 OMITTED)

RATIO OF EXPENSES TO 1.80% A 1.66% 1.61% 1.90% 2.12% 2.38%
AVERAGE NET ASSETS

RATIO OF EXPENSES TO 1.79% A, F 1.65% F 1.60% F 1.90% 2.12% 2.38%
AVERAGE NET ASSETS
AFTER EXPENSE
REDUCTIONS

RATIO OF NET INVESTMENT .22% A .80% 1.30% 1.01% .05% (.18)%
INCOME TO AVERAGE NET
ASSETS

PORTFOLIO TURNOVER 62% A 70% 82% 47% 34% 42%

AVERAGE COMMISSION $ .0078 $ .0111 $ .0133
RATE G

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 INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND
WHICH AMOUNTED TO $.04 PER SHARE.
F 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).
G FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995,
A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE
PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED.
THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND
DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS
WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES
MAY DIFFER.
H INCLUDES AMOUNTS DISTRIBUTED FROM NET REALIZED GAINS ON FOREIGN
CURRENCY RELATED TRANSACTIONS TAXABLE AS ORDINARY INCOME.

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS - CLASS B
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1998

(UNAUDITED) 1997 1996 1995 F
SELECTED PER-SHARE DATA

NET ASSET VALUE, BEGINNING OF PERIOD $ 16.69 $ 15.06 $ 13.92 $ 13.89

INCOME FROM INVESTMENT OPERATIONS

NET INVESTMENT INCOME (LOSS) (.02) D .02 D .08 D, E .01

NET REALIZED AND UNREALIZED GAIN (LOSS) 2.68 2.36 1.26 .02

TOTAL FROM INVESTMENT OPERATIONS 2.66 2.38 1.34 .03

LESS DISTRIBUTIONS

FROM NET INVESTMENT INCOME (.10) (.12) (.19) -

IN EXCESS OF NET INVESTMENT INCOME (.03) - - -

FROM NET REALIZED GAIN (.96) (.63) (.01) -

TOTAL DISTRIBUTIONS (1.09) (.75) (.20) -

NET ASSET VALUE, END OF PERIOD $ 18.26 $ 16.69 $ 15.06 $ 13.92

TOTAL RETURN B, C 16.97% 16.41% 9.73% .22%

RATIOS AND SUPPLEMENTAL DATA

NET ASSETS, END OF PERIOD (000 OMITTED) $ 56,122 $ 39,841 $ 18,668 $ 2,999

RATIO OF EXPENSES TO AVERAGE NET ASSETS 2.31% A, G 2.30% 2.37% 1.97% A, G

RATIO OF EXPENSES TO AVERAGE NET ASSETS AFTER 2.30% A, H 2.29% H 2.37% 1.97% A
EXPENSE REDUCTIONS

RATIO OF NET INVESTMENT INCOME (LOSS) TO (.23)% A .15% .53% .94% A
AVERAGE NET ASSETS

PORTFOLIO TURNOVER 62% A 70% 82% 47%

AVERAGE COMMISSION RATE I $ .0078 $ .0111 $ .0133

</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 (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
E INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH
AMOUNTED TO $.04 PER SHARE.
F FOR THE PERIOD JULY 3, 1995 (COMMENCEMENT OF SALE OF CLASS B SHARES)
TO OCTOBER 31, 1995.
G 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).
H 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).
I FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS
REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR
SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY
FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES
EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION
RATE STRUCTURES MAY DIFFER.
FINANCIAL HIGHLIGHTS - CLASS C
SIX MONTHS ENDED
APRIL 30, 1998

(UNAUDITED) E

SELECTED PER-SHARE DATA

NET ASSET VALUE, BEGINNING OF PERIOD $ 17.23

INCOME FROM INVESTMENT OPERATIONS

NET INVESTMENT INCOME D .04

NET REALIZED AND UNREALIZED GAIN (LOSS) 2.47

TOTAL FROM INVESTMENT OPERATIONS 2.51

LESS DISTRIBUTIONS

FROM NET INVESTMENT INCOME (.12)

IN EXCESS OF NET INVESTMENT INCOME (.04)

FROM NET REALIZED GAIN (.96)

TOTAL DISTRIBUTIONS (1.12)

NET ASSET VALUE, END OF PERIOD $ 18.62

TOTAL RETURN B, C 15.59%

RATIOS AND SUPPLEMENTAL DATA

NET ASSETS, END OF PERIOD (000 OMITTED) $ 5,813

RATIO OF EXPENSES TO AVERAGE NET ASSETS 2.30% A, F

RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS .44% A

PORTFOLIO TURNOVER 62% A

AVERAGE COMMISSION RATE G $ .0078

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 NOVEMBER 3, 1997 (COMMENCEMENT OF SALE OF CLASS C
SHARES) TO APRIL 30, 1998.
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 FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS
REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR
SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY
FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES
EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION
RATE STRUCTURES MAY DIFFER.

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1998

(UNAUDITED) 1997 1996 1995 F
SELECTED PER-SHARE DATA

NET ASSET VALUE, BEGINNING OF PERIOD $ 16.92 $ 15.20 $ 13.97 $ 13.89

INCOME FROM INVESTMENT OPERATIONS

NET INVESTMENT INCOME .06 D .22 D .21 D, E .05

NET REALIZED AND UNREALIZED GAIN (LOSS) 2.71 2.36 1.24 .03

TOTAL FROM INVESTMENT OPERATIONS 2.77 2.58 1.45 .08

LESS DISTRIBUTIONS

FROM NET INVESTMENT INCOME (.20) (.23) (.21) -

IN EXCESS OF NET INVESTMENT INCOME (.06) - - -

FROM NET REALIZED GAIN (.96) (.63) (.01) -

TOTAL DISTRIBUTIONS (1.22) (.86) (.22) -

NET ASSET VALUE, END OF PERIOD $ 18.47 $ 16.92 $ 15.20 $ 13.97

TOTAL RETURN B, C 17.54% 17.73% 10.51% .58%

RATIOS AND SUPPLEMENTAL DATA

NET ASSETS, END OF PERIOD (000 OMITTED) $ 50,061 $ 38,247 $ 16,247 $ 1,482

RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.31% A, G 1.17% 1.44% .97% A, G

RATIO OF EXPENSES TO AVERAGE NET ASSETS AFTER 1.30% A, H 1.16% H 1.43% H .97% A
EXPENSE REDUCTIONS

RATIO OF NET INVESTMENT INCOME TO AVERAGE .74% A 1.31% 1.46% 1.94% A
NET ASSETS

PORTFOLIO TURNOVER 62% A 70% 82% 47%

AVERAGE COMMISSION RATE I $ .0078 $ .0111 $ .0133

</TABLE>

CLASS T .50%

CLASS B 1.00% *

CLASS C 1.00% *

CLASS A $ 8,000 $ 8,000 $ -

CLASS T 2,879,000 2,832,000 47,000

CLASS B 227,000 57,000 170,000

CLASS C 11,000 0 11,000

$ 3,125,000 $ 2,897,000 $ 228,000

CLASS T 156,000

CLASS B 23,000

CLASS C 5,000

$ 189,000

CLASS A $ 49,000 $ 30,000

CLASS T 304,000 210,000

CLASS B 63,000 0*

CLASS C 400 0*

$ 416,400 $ 240,000

CLASS A $ 11,000 .34*

CLASS T 1,251,000 .22*

CLASS B 68,000 .31*

CLASS C 3,000 .27*

INSTITUTIONAL CLASS 35,000 .17*

$ 1,368,000

CLASS A 1.55% $ 11,000

CLASS T 1.80% -

CLASS B 2.30% 27,000

CLASS C 2.30% 14,000

INSTITUTIONAL CLASS 1.30% 19,000

$ 71,000

1998 A 1997

FROM NET INVESTMENT INCOME

CLASS A $ 53 $ 15

CLASS T 8,064 10,326

CLASS B 250 155

CLASS C 2 -

INSTITUTIONAL CLASS 468 302

TOTAL $ 8,837 $ 10,798

IN EXCESS OF NET INVESTMENT INCOME

CLASS A $ 15 $ -

CLASS T 2,270 -

CLASS B 71 -

CLASS C 1 -

INSTITUTIONAL CLASS 132 -

TOTAL $ 2,489 $ -

FROM NET REALIZED GAIN

CLASS A $ 311 $ 38

CLASS T 62,025 40,659

CLASS B 2,341 812

CLASS C 27 -

INSTITUTIONAL CLASS 2,212 826

TOTAL $ 66,916 $ 42,335

$ 78,242 $ 53,133

B DISTRIBUTIONS FOR CLASS C ARE FOR THE PERIOD NOVEMBER 3, 1997
(COMMENCEMENT OF SALE OF SHARES) TO APRIL 30, 1998.
7. SHARE TRANSACTIONS.
Share transactions for each class of shares were as follows:

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

AMOUNTS IN THOUSANDS SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31,

1998 A 1997 1998 A 1997

CLASS A 305 333 $ 5,209 $ 5,654
SHARES SOLD

REINVESTMENT OF DISTRIBUTIONS 23 3 371 52

SHARES REDEEMED (150) (82) (2,533) (1,418)

NET INCREASE (DECREASE) 178 254 $ 3,047 $ 4,288

CLASS T 20,172 29,400 $ 344,884 $ 487,493
SHARES SOLD

REINVESTMENT OF DISTRIBUTIONS 4,208 3,178 67,693 47,914

SHARES REDEEMED (21,276) (32,358) (362,440) (538,266)

NET INCREASE (DECREASE) 3,104 220 $ 50,137 $ (2,859)

CLASS B 1,227 1,517 $ 20,535 $ 25,441
SHARES SOLD

REINVESTMENT OF DISTRIBUTIONS 153 63 2,417 931

SHARES REDEEMED (694) (432) (11,465) (7,271)

NET INCREASE (DECREASE) 686 1,148 $ 11,487 $ 19,101

CLASS C 378 - $ 6,515 $ -
SHARES SOLD

REINVESTMENT OF DISTRIBUTIONS 1 - 16 -

SHARES REDEEMED (67) - (1,175) -

NET INCREASE (DECREASE) 312 - $ 5,356 $ -

INSTITUTIONAL CLASS 800 2,508 $ 13,508 $ 41,330
SHARES SOLD

REINVESTMENT OF DISTRIBUTIONS 146 68 2,327 1,019

SHARES REDEEMED (497) (1,384) (8,416) (23,305)

NET INCREASE (DECREASE) 449 1,192 $ 7,419 $ 19,044

</TABLE>

CLASS A $ 8,000

CLASS T 35,000

CLASS B 10,000

CLASS C 14,000

INSTITUTIONAL CLASS 36,000

$ 103,000

INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
INVESTMENT SUB-ADVISERS
Fidelity Management & Research (U.K.) Inc., London, England
Fidelity Management & Research
(Far East) Inc., Tokyo, Japan
Fidelity International Investment Advisors
Fidelity International Investment Advisors (U.K.) Limited
Fidelity Investments Japan Limited
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Richard A. Spillane, Jr., Vice President
Richard Mace, Jr., 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
William J. McCoy *
Marvin L. Mann *
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, N.A.
New York, 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
MONEY MARKET FUNDS
Prime Fund
Treasury Fund
Tax-Exempt Fund

(REGISTERED TRADEMARK)

(2_FIDELITY_LOGOS)FIDELITY ADVISOR

(REGISTERED TRADEMARK)
INTERNATIONAL
CAPITAL APPRECIATION
FUND - CLASS A, CLASS T, CLASS B
AND CLASS C
SEMIANNUAL REPORT
APRIL 30, 1998
CONTENTS

PRESIDENT'S MESSAGE 3 NED JOHNSON ON INVESTING STRATEGIES.

PERFORMANCE 4 HOW THE FUND HAS DONE OVER TIME.

FUND TALK 12 THE MANAGER'S REVIEW OF FUND
PERFORMANCE, STRATEGY AND OUTLOOK.

INVESTMENT SUMMARY 15 A SUMMARY OF THE FUND'S INVESTMENTS.

INVESTMENTS 16 A COMPLETE LIST OF THE FUND'S INVESTMENTS
WITH THEIR MARKET VALUES.

FINANCIAL STATEMENTS 25 STATEMENTS OF ASSETS AND LIABILITIES,
OPERATIONS, AND CHANGES IN NET ASSETS,
AS WELL AS FINANCIAL HIGHLIGHTS.

NOTES 34 NOTES TO THE FINANCIAL STATEMENTS.

(photo_of_Edward_C_Johnson_3d)
DEAR SHAREHOLDER:
Low interest rates and subdued inflation were two main factors that
bolstered stock and bond markets in the U.S. during the first four
months of 1998. The stock market continued to soar to record heights
as corporate earnings proved to be stronger than expected and
investors shrugged off concerns about the effects of economic
difficulties in Asia. The Federal Reserve Board continued its steady
interest rate policy, which boosted the performance of bonds.
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.
First, investors are encouraged to take a long-term view of their
portfolios. If you can afford to leave your money invested through the
inevitable up and down cycles of the financial markets, you will
greatly reduce your vulnerability to any single decline. We know from
experience, for example, that stock prices have gone up over longer
periods of time, have significantly outperformed other types of
investments and have stayed ahead of inflation.
Second, you can further manage your investing risk through
diversification. A stock mutual fund, for instance, is already
diversified, because it invests in many different companies. You can
increase your diversification further by investing in a number of
different stock funds, or in such other investment categories as
bonds. If you have a short investment time horizon, you might want to
consider moving some of your investment into a money market fund,
which seeks income and a stable share price by investing in
high-quality, short-term investments. 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
FIDELITY ADVISOR INTERNATIONAL CAPITAL APPRECIATION FUND - CLASS A
PERFORMANCE: THE BOTTOM LINE

FIDELITY ADV INTL CAP APP - CL A 18.00%

FIDELITY ADV INTL CAP APP - CL A 11.21%
(INCL. MAX. 5.75% SALES CHARGE)

MSCI WORLD EX US 12.52%

CUMULATIVE TOTAL RETURNS show Class A's performance in percentage
terms over a set period - in this case, since the fund started on
November 3, 1997. 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 the performance
of the Morgan Stanley Capital International AC World Index Free ex USA
(MSCI World ex US) - an unmanaged, market capitalization weighted
index that is designed to represent the performance of developed stock
markets, excluding the United States, throughout the world. This
benchmark includes reinvested dividends and capital gains, if any.
AVERAGE ANNUAL TOTAL RETURNS
AVERAGE ANNUAL TOTAL RETURNS take Class A shares' cumulative return
and show you what would have happened if Class A shares had performed
at a constant rate each year. These numbers will be reported once the
fund is a year old.
$10,000 OVER LIFE OF FUND
FA Intl Cap App -CL A MS World ex USA (Gross)
00288 MS025
1997/11/03 9425.00 10000.00
1997/11/30 9179.95 9717.68
1997/12/31 9368.45 9829.52
1998/01/31 9641.78 10123.55
1998/02/28 10282.68 10799.04
1998/03/31 10867.03 11172.17
1998/04/30 11120.51 11252.19
IMATRL PRASUN SHR__CHT 19980430 19980507 145257 R00000000000009
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Advisor International Capital Appreciation Fund -
Class A on November 3, 1997, when the fund started, and the current
5.75% sales charge was paid. As the chart shows, by April 30, 1998,
the value of the investment would have grown to $11,121 - an 11.21%
increase on the initial investment. For comparison, look at how the
Morgan Stanley Capital International AC World Index Free ex USA did
over the same period. With dividends reinvested, the same $10,000
would have grown to $11,252 - a 12.52% 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)
FIDELITY ADVISOR INTERNATIONAL CAPITAL APPRECIATION FUND - CLASS T
PERFORMANCE: THE BOTTOM LINE

FIDELITY ADV INTL CAP APP - CL T 17.80%

FIDELITY ADV INTL CAP APP - CL T 13.68%
(INCL. MAX. 3.50% SALES CHARGE)

MSCI WORLD EX US 12.52%

CUMULATIVE TOTAL RETURNS show Class T's performance in percentage
terms over a set period - in this case, since the fund started on
November 3, 1997. 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 the performance
of the Morgan Stanley Capital International AC World Index Free ex USA
(MSCI World ex US) - an unmanaged, market capitalization weighted
index that is designed to represent the performance of developed stock
markets, excluding the United States, throughout the world. This
benchmark includes reinvested dividends and capital gains, if any.
AVERAGE ANNUAL TOTAL RETURNS
AVERAGE ANNUAL TOTAL RETURNS take Class T shares' cumulative return
and show you what would have happened if Class T shares had performed
at a constant rate each year. These numbers will be reported once the
fund is a year old.
$10,000 OVER LIFE OF FUND
FA Intl Cap App -CL T MS World ex USA (Gross)
00292 MS025
1997/11/03 9650.00 10000.00
1997/11/30 9399.10 9717.68
1997/12/31 9592.10 9829.52
1998/01/31 9862.30 10123.55
1998/02/28 10518.50 10799.04
1998/03/31 11116.80 11172.17
1998/04/30 11367.70 11252.19
IMATRL PRASUN SHR__CHT 19980430 19980518 163938 R00000000000009
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Advisor International Capital Appreciation Fund -
Class T on November 3, 1997, when the fund started, and the current
3.50% sales charge was paid. As the chart shows, by April 30, 1998,
the value of the investment would have grown to $11,368 - a 13.68%
increase on the initial investment. For comparison, look at how the
Morgan Stanley Capital International AC World Index Free ex USA did
over the same period. With dividends reinvested, the same $10,000
would have grown to $11,252 - a 12.52% 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)
FIDELITY ADVISOR INTERNATIONAL CAPITAL APPRECIATION FUND - CLASS B
PERFORMANCE: THE BOTTOM LINE

FIDELITY ADV INTL CAP APP - CL B 17.50%

FIDELITY ADV INTL CAP APP - CL B 12.50%
(INCL. CONTINGENT DEFERRED SALES CHARGE)

MSCI WORLD EX US 12.52%

CUMULATIVE TOTAL RETURNS show Class B's performance in percentage
terms over a set period - in this case, since the fund started on
November 3, 1997. 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 the performance
of the Morgan Stanley Capital International AC World Index Free ex USA
(MSCI World ex US) - an unmanaged, market capitalization weighted
index that is designed to represent the performance of developed stock
markets, excluding the United States, throughout the world. This
benchmark includes reinvested dividends and capital gains, if any.
AVERAGE ANNUAL TOTAL RETURNS
AVERAGE ANNUAL TOTAL RETURNS take Class B shares' cumulative return
and show you what would have happened if Class B shares had performed
at a constant rate each year. These numbers will be reported once the
fund is a year old.
$10,000 OVER LIFE OF FUND
FA Intl Cap App -CL B MS World ex USA (Gross)
00290 MS025
1997/11/03 10000.00 10000.00
1997/11/30 9730.00 9717.68
1997/12/31 9930.00 9829.52
1998/01/31 10200.00 10123.55
1998/02/28 10870.00 10799.04
1998/03/31 11490.00 11172.17
1998/04/30 11250.00 11252.19
IMATRL PRASUN SHR__CHT 19980430 19980611 113602 R00000000000009
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Advisor International Capital Appreciation Fund -
Class B on November 3, 1997, when the fund started. As the chart
shows, by April 30, 1998, the value of the investment, including the
effect of the applicable contingent deferred sales charge, would have
been $11,250 - a 12.50% increase on the initial investment. For
comparison, look at how the Morgan Stanley Capital International AC
World Index Free ex USA did over the same period. With dividends
reinvested, the same $10,000 would have grown to $11,252 - a 12.52%
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)
FIDELITY ADVISOR INTERNATIONAL CAPITAL APPRECIATION FUND - CLASS C
PERFORMANCE: THE BOTTOM LINE

FIDELITY ADV INTL CAP APP - CL C 17.50%

FIDELITY ADV INTL CAP APP - CL C 16.50%
(INCL. CONTINGENT DEFERRED
SALES CHARGE)

MSCI WORLD EX US 12.52%

CUMULATIVE TOTAL RETURNS show Class C's performance in percentage
terms over a set period - in this case, since the fund started on
November 3, 1997. 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 the performance
of the Morgan Stanley Capital International AC World Index Free ex
USA (MSCI World ex US) - an unmanaged, market capitalization weighted
index that is designed to represent the performance of developed stock
markets, excluding the United States, throughout the world. This
benchmark includes reinvested dividends and capital gains, if any.
AVERAGE ANNUAL TOTAL RETURNS
AVERAGE ANNUAL TOTAL RETURNS take Class C shares' cumulative return
and show you what would have happened if Class C shares had performed
at a constant rate each year. These numbers will be reported once the
fund is a year old.
$10,000 OVER LIFE OF FUND
FA Intl Cap App -CL C MS World ex USA (Gross)
00281 MS025
1997/11/03 10000.00 10000.00
1997/11/30 9730.00 9717.68
1997/12/31 9930.00 9829.52
1998/01/31 10210.00 10123.55
1998/02/28 10880.00 10799.04
1998/03/31 11490.00 11172.17
1998/04/30 11650.00 11252.19
IMATRL PRASUN SHR__CHT 19980430 19980507 150417 R00000000000009
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Advisor International Capital Appreciation Fund -
Class C on November 3, 1997, when the fund started. As the chart
shows, by April 30, 1998, the value of the investment, including the
effect of the applicable contingent deferred sales charge, would have
been $11,650 - a 16.50% increase on the initial investment. For
comparison, look at how the Morgan Stanley Capital International AC
World Index Free ex USA did over the same period. With dividends
reinvested, the same $10,000 would have grown to $11,252 - a 12.52%
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)
FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
During the six-months that ended
April 30, 1998, some of the world's
financial markets enjoyed robust
growth, while others continued to
unravel. For the period, the
Morgan Stanley Capital
International EAFE Index - which
measures stock performance in
Europe, Australia and the Far East
- - returned 15.56%. Most
economies in Europe continued to
thrive amidst an environment of
relatively benign inflation and
reduced interest rates, as many
countries prepared for the advent
of the European Monetary Union in
January 1999. Many corporations
followed the path to efficiency
through restructuring and merger
and acquisition activity. Strong
individual performers included
Portugal, Spain and Italy. Latin
American markets struggled,
however, as economic turmoil in
Southeast Asia prompted a
massive sell-off of most
emerging-market stocks at the
beginning of the period. The
Brazilian market rebounded,
performing fairly well during the
period after interest rates fell, but
Mexico and Venezuela were victims
of plummeting oil prices at the end
of 1997. Southeast Asian markets
- - the origin of most of the volatility
in emerging markets - performed
poorly. The depreciation of many
currencies in the region prompted
central banks to dramatically raise
interest rates, slowing economies
by making borrowing more
expensive. Japan suffered from
sharply falling stock prices and
depreciating currencies, while the
failure of several Japanese
financial firms raised concerns
about widespread corporate
bankruptcies. Hong Kong fared
significantly better than other Asian
markets because of its more mature
and less volatile nature.
An interview with Kevin McCarey, Portfolio Manager of Fidelity Advisor
International Capital Appreciation Fund
Q. HOW DID THE FUND PERFORM, KEVIN?
A. The fund got off to a good start. From November 3, 1997 - the
fund's inception date - through April 30, 1998, the fund's Class A, T,
B and C shares returned 18.00%, 17.80%, 17.50% and 17.50%,
respectively. The Morgan Stanley Capital International AC World Index
Free ex USA returned 12.52% during that period. Future reports will
show the fund's performance over six- and 12-month periods.
Q. WHAT TYPES OF INVESTMENTS HAVE YOU FOCUSED ON IN THE SHORT TIME THE
FUND HAS BEEN UP AND RUNNING?
A. Although international markets have been quite volatile since the
fund's launch, I've perused the globe for different opportunities over
the past six months. At the end of the period, the fund's two largest
industry weightings were in the finance and utilities sectors. Finance
stocks have done quite well over the past couple of years, due to a
combination of favorable economic climates and positive restructuring
stories. Examples held in the portfolio included Grupo Financiero
Bancomer in Mexico and Credito Italiano in Italy. Utilities have been
attractive to me primarily due to the amazing growth in worldwide
telecommunications demand. The fund's single-largest holding at the
end of the period, in fact, was the large Brazilian telecom company,
Telebras. This fund has a fairly flexible mandate in that it can
pursue investment opportunities in both developed countries and
emerging-market countries.
Q. WHAT ARE THE DIFFERENCES BETWEEN DEVELOPED AND EMERGING-MARKET
COUNTRIES?
A. In a nutshell, developed regions - such as Germany and the United
Kingdom - tend to have more mature economies and more efficient
trading markets, but slower gross domestic product (GDP) growth.
Emerging-market countries, on the other hand, tend to be more volatile
with less stable economies and governments. However, GDP growth is
typically faster, and some markets tend to be less liquid. The risk of
sharp currency devaluations is also more likely in emerging-market
regions, as we most recently saw in Southeast Asia in late 1997. With
solid research, though - and I feel we have one of the best global
research groups in the industry - I'm confident that we can capture
some of the attractive return potential inherent in these types of
investments. I think there are a lot of interesting emerging-market
opportunities out there, given the current press about this area.
Q. WHAT DID YOU LIKE ABOUT TELEBRAS?
A. Telebras is an emerging-market position that I found to be one of
the cheapest companies of its kind in the world. The company is
currently in the midst of splitting up into one long-distance company
and several local operating companies - much like AT&T's split into
one long-distance company and the Baby Bells back in the 1980s. In the
case of Telebras, the company is going one step further by breaking
its fixed-line businesses - or standard phone lines into homes - away
from its cellular phone businesses. I think this move may unlock a lot
of value in Telebras. Since there is lots of room to grow in Brazil, I
also expect that the Telebras companies will continue to experience
strong subscriber growth rates. Fixed lines are growing at a 12% to
14% clip, but less than 10% of the population has a phone. In
contrast, developed economies typically have a 60% phone penetration
rate. Additionally, cellular subscriber growth rates are even faster
due to even lower penetration levels.
Q. THE FUND ALSO HAD SIGNIFICANT POSITIONS IN MEDISON CO. AND NCL
HOLDINGS . . .
A. The fund's position in Medison illustrates my investment strategy
of focusing on individual stock selection rather than country
selection. Medison is a South Korean-based manufacturer of ultrasound
equipment and, while Korea itself has had its share of economic
problems, I've been attracted to this particular stock. The company
has been effective in generating low-cost products and has decent new
technology as well. NCL Holdings symbolizes the nice run that leisure
stocks have had recently. NCL is the world's third-largest cruise ship
operator, and its business and revenues have been growing steadily.
Q. WHAT'S YOUR OUTLOOK?
A. Many of the positive factors that have fueled the European markets
should remain in place. We've seen strong economies, low interest
rates, high consumer confidence and beneficial corporate
restructurings. To add a word of caution, though, European markets
have been on a roll for quite some time and I wouldn't be surprised to
see some form of stock price consolidation. On the emerging-market
front, medium-term prospects look good, but I wouldn't attempt to
predict short-term prospects. Many countries have had setbacks lately
and that could make for some good bargain shopping going forward.
Lastly, while Japan has certainly had its share of economic problems,
we've seen flickers of positive trends lately.
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.

KEVIN MCCAREY EXPLORES
MARKET CONDITIONS IN
EUROPE AND JAPAN:
"For the most part, European
markets continued to benefit from
the drive towards a uniform
currency, commonly known as the
European Monetary Union (EMU).
As the EMU has come closer to
reality, the resulting convergence
in economic and fiscal policies
across Europe has had a
multi-faceted effect. Interest rates
have hovered at low levels, and
consumer confidence is up across
the board. Additionally, we've also
seen a number of cross-border
mergers, as companies in different
countries have become more
comfortable conducting business
with each other. Corporate
restructurings in general continue
to be a common theme, as
companies look for ways to
increase profitability, market
share and - in some cases - size.
All of this has been mostly positive
for European markets.
"In Japan, economic progress and
change tends to be more gradual
than revolutionary. Thus, Japanese
companies have not followed their
European counterparts in terms of
corporate redesign. We have seen
some initial progress in the form of
share buybacks and better return
on capital, but some companies
have experienced weak domestic
demand and have been challenged
by the effects of deregulation.
Despite these problems, however,
there are still some interesting
stocks to be uncovered."
FUND FACTS
GOAL: seeks capital
appreciation by investing in
securities of foreign issuers
START DATE: November 3, 1997
SIZE: as of April 30, 1998,
more than $17 million
MANAGER: Kevin McCarey,
since inception; joined Fidelity
in 1985
(checkmark)
INVESTMENT SUMMARY

TOP FIVE STOCKS AS OF APRIL 30, 1998
% OF FUND'S
INVESTMENTS

TELEBRAS SPONSORED ADR 2.4
(BRAZIL, TELEPHONE SERVICES)

MEDISON CO. LTD. (KOREA (SOUTH), MEDICAL 1.4
EQUIPMENT & SUPPLIES)

TDK CORP. (JAPAN, ELECTRONICS) 1.3

ALCATEL ALSTHOM COMPAGNIE GENERALE 1.3
D'ELECTRICITE SA (FRANCE, ELECTRICAL EQUIPMENT)

NCL HOLDINGS AS (NORWAY, ENTERTAINMENT) 1.3

TOP FIVE MARKET SECTORS AS OF APRIL 30, 1998
% OF FUND'S INVESTMENTS

FINANCE 20.4

UTILITIES 10.5

HEALTH 7.0

INDUSTRIAL MACHINERY & EQUIPMENT 6.1

RETAIL & WHOLESALE 6.0

TOP FIVE COUNTRIES AS OF APRIL 30, 1998
(EXCLUDING CASH EQUIVALENTS) % OF FUND'S INVESTMENTS

UNITED KINGDOM 15.1

JAPAN 12.4

FRANCE 10.9

NETHERLANDS 6.4

GERMANY 5.6

TOP COUNTRIES ARE BASED UPON LOCATION OF ISSUER OF EACH SECURITY,
INCLUDING WHERE THE FUND IS EXPOSED TO POTENTIAL POLITICAL AND CREDIT
RISKS.
ASSET ALLOCATION (% OF FUND'S INVESTMENTS)
AS OF APRIL 30, 1998

ROW: 1, COL: 1, VALUE: 89.09999999999999
ROW: 1, COL: 2, VALUE: 10.9
STOCKS 89.1%
SHORT-TERM INVESTMENTS 10.9%
INVESTMENTS APRIL 30, 1998 (UNAUDITED)

SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENT IN SECURITIES

COMMON STOCKS - 86.2%
SHARES VALUE (NOTE 1)
ARGENTINA - 0.7%
Bansud SA Class B (a) 6,600 $ 62,048
Telecom Argentina Class B sponsored ADR 480 17,280
YPF Sociedad Anonima sponsored ADR representing
Class D shares 1,000 34,875
114,203
AUSTRALIA - 1.3%
Australia & New Zealand Banking Group Ltd. 13,000 90,433
Coles Myer Ltd. 4,900 23,631
David Jones Ltd. 50,000 56,871
National Mutual Holdings Ltd. 15,000 35,390
QNI Ltd. 40,000 23,398
229,723
BRAZIL - 3.3%
Compania Energertica Minas Gerais 1,000,000 48,533
Ericsson Telecomunicacoes SA (Reg.) (a) 100,000 3,061
Petrobras PN (Pfd. Reg.) 400,000 101,439
Telebras sponsored ADR 3,500 426,344
579,377
CANADA - 3.4%
Alcan Aluminium Ltd. 800 25,941
Bank of Montreal 1,400 76,313
Bell Canada International, Inc. 6,000 134,177
Canadian Fracmaster Ltd. (a) 1,000 12,963
Cinar Films, Inc. Class B (sub-vtg.) (a) 1,200 23,062
CGI Group, Inc. Class A (sub-vtg.) (a) 1,900 52,315
Power Corporation of Canada 2,400 95,852
Teleglobe, Inc. 2,500 109,193
Videotron Group Ltd. 5,900 71,949
601,765
CHILE - 0.3%
Supermercados Unimarc SA sponsored ADR 5,000 54,063
CZECH REPUBLIC - 0.1%
SPT Telecom AS (a) 130 18,893
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
FINLAND - 1.7%
Merita Ltd., Series A 9,600 $ 64,094
Metsa-Serla Ltd. Class B 14,500 150,266
Nokia Corp. AB sponsored ADR 1,300 86,938
301,298
FRANCE - 10.9%
Accor SA 700 190,597
Alcatel Alsthom Compagnie Generale d'Electricite SA 1,300 235,625
Axa SA 700 82,100
Atos SA (a) 120 20,035
BQE National Paris Ord. 400 33,691
Bongrain SA 100 51,466
Cap Gemini Sogeti SA 700 90,821
Christian Dior SA 300 40,618
Coflexip sponsored ADR 1,500 106,875
Compagnie Generale de Geophysique SA (a) 200 29,039
Generale des Eaux, Cie 600 111,438
Credit Commercial de France Ord. 580 46,250
Groupe Danone 320 75,488
Michelin SA (Compagnie Generale des Etablissements)
Class B 1,100 69,240
NRJ SA 440 74,923
Nationale Elf Aquitaine 1,100 144,181
Pathe SA 100 21,729
Pechiney SA Class A 400 17,875
Renault SA Ord. (a) 1,700 78,794
Rhone Poulenc SA Class A 550 26,872
Societe Generale Class A 600 124,794
Total SA Class B 1,260 149,664
Unibail (a) 300 42,861
Union Assurances Federale SA 300 46,898
1,911,874
GERMANY - 4.2%
Allianz AG (Reg.) 300 97,121
BHF Bank AG 4,100 170,082
BASF AG 1,000 45,325
Daimler-Benz AG Ord. 300 29,709
Deutsche Lufthansa AG 4,100 97,027
Hoechst AG Ord. 700 28,290
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
GERMANY - CONTINUED
Hornbach Baumarket AG (Bearer) 600 $ 27,396
Mannesmann AG Ord. 210 173,762
Philipp Holzmann AG (a) 250 74,893
743,605
HONG KONG - 4.3%
China Telecom (Hong Kong) Ltd. 20,000 38,625
Dairy Farm International Holdings Ltd. 140,000 179,200
Goldlion Holdings Ltd. 350,000 85,823
JCG Holdings Ltd. 170,000 77,886
Johnson Electric Holdings Ltd. 24,000 81,306
Li & Fung Ltd. 80,000 134,220
Sun Hung Kai Properties Ltd. 1,000 5,937
Vtech Holdings Ltd. 45,000 157,966
760,963
INDIA - 1.8%
Dr. Reddy's Laboratories Ltd. 10,000 111,050
Morgan Stanley India Investment Fund, Inc. (a) 16,000 140,000
State Bank of India 10,000 72,516
323,566
INDONESIA - 0.4%
Daya Guna Samudera TBK 40,000 36,625
PT Indah Kiat Pulp & Paper Corp. 100,000 27,500
64,125
IRELAND - 0.9%
Bank of Ireland, Inc. 2,900 59,161
Elan Corp. PLC ADR (a) 1,050 65,231
Smurfit (Jefferson) Group PLC 10,400 37,937
162,329
ITALY - 1.3%
Assicurazioni Generali Spa 1,100 32,925
Banca Commerciale Italiana Spa 7,000 35,389
Credito Italiano Ord. 13,200 69,050
Finmeccanica Spa (a) 26,500 38,976
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
ITALY - CONTINUED
Istituto Nazionale Delle Assicurazioni Spa 11,200 $ 33,388
Toro Assicurazioni Spa Ord. 1,500 26,234
235,962
JAPAN - 12.4%
Aiwa Co. Ltd. 2,000 59,477
Asahi Breweries Ltd. 2,000 26,094
Banyu Pharmaceutical Co. Ltd. 6,000 77,244
Benesse Corp. 2,700 87,002
Fuji Bank Ltd. 6,000 33,653
Fuji Heavy Industries Ltd. 12,000 53,574
Fuji Fire & Marine Insurance Co. Ltd. 15,000 35,573
Honda Motor Co. Ltd. 5,000 180,689
Ito En Ltd. 2,200 64,099
Kirin Beverage Corp. 6,000 116,996
Long Term Credit Bank of Japan Ltd. (The) 40,000 65,349
Mabuchi Motor Co. 1,600 92,272
Matsushita Electric Industrial Co. Ltd. 6,000 95,765
Matsushita Electric Works Co. Ltd. 6,000 53,755
Matsumotokiyoshi Co. Ltd. 800 27,525
Meiwa Estate Co. Ltd. 2,100 18,814
Meitec Corp. 3,000 98,250
Minebea Co. Ltd. 5,000 55,712
Mitsubishi Estate Co. Ltd. 5,000 48,184
Mitsubishi Trust & Banking Corp. 6,000 56,917
Nintendo Co. Ltd. Ord. 100 9,140
Orix Corp. 200 13,778
Paris Miki, Inc. 2,640 42,335
Sankyo Co. Ltd. 5,000 123,471
Sony Corp. 900 76,458
Sumitomo Realty & Development Co. Ltd. 7,000 33,465
TDK Corp. 3,000 236,251
Takeda Chemical Industries Ltd. 2,000 56,917
Takefuji Corp. 2,000 104,649
Tokyo Seimitsu Co. Ltd. 1,000 29,287
Yamanouchi Pharmaceutical Co. Ltd. 4,000 94,259
Yasuda Trust & Banking 7,000 9,328
2,176,282
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
KOREA (SOUTH) - 1.4%
Medison Co. Ltd. 30,000 $ 244,669
LUXEMBOURG - 0.5%
Stolt Comex Seaway SA (a) 2,650 86,125
MEXICO - 2.0%
Consorcio G Grupo Dina SA de CV sponsored ADR (a) 2,400 12,450
Grupo Financiero Banamex-Accival Class B (a) 24,000 74,894
Grupo Financiero Bancomer Class B 240,000 165,615
Grupo Gigante SA de CV Class B (a) 110,000 48,316
Grupo Elektra SA 14,000 19,981
Tubos De Acero De Mexico ADR (a) 1,800 33,075
354,331
MALAYSIA - 0.2%
Berjaya Sports Toto BHD 10,000 23,711
Jaya Tiasa Holdings BHD 7,000 10,971
34,682
NETHERLANDS - 6.4%
AKZO Nobel NV 450 91,473
Benckiser NV Class B 450 26,240
Fortis Amev NV 2,200 128,612
ING Groep NV 1,630 105,367
Koninklijke KNP BT NV 1,500 41,174
Melia Inversiones Americanas NV (a) 500 24,917
Philips Electronics NV:
warrants 6/30/98 2,200 156,684
(Bearer) 1,700 153,000
PolyGram NV ADR 4,000 173,252
Samas-Groep NV 1,400 86,760
VNU Ord. 1,200 38,815
Vendex International NV 500 32,049
Vedior NV 2,000 60,735
1,119,078
NORWAY - 1.3%
NCL Holdings AS (a) 46,000 221,175
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
PORTUGAL - 0.8%
BPI-SGPS SA (Reg.) 2,100 $ 97,534
Portugal Telecom SA 500 26,848
Telecel Comunicacoes Pessoais SA (a) 100 17,926
142,308
RUSSIA - 1.2%
Vimpel Communications sponsored ADR (a) 4,000 216,000
SINGAPORE - 0.4%
DBS Land Ltd. 50,000 75,466
SOUTH AFRICA - 0.6%
Amalgamated Banks of South Africa Ltd. 6,300 54,541
Sasol, Ltd. 2,900 29,267
Standard Bank Investment Corp. 500 29,583
113,391
SPAIN - 1.9%
Actividades de Construccion y Servicios (ACS) SA 1,900 62,293
Corporacion Mapfre Compania Internacional
de Reaseguros SA (Reg.) 1,000 39,212
Iberdrola SA 2,200 35,343
Portland Valderrivas SA Ord. 260 31,881
Repsol SA Ord. 600 32,851
Telefonica de Espana SA Ord. 3,000 125,111
326,691
SWEDEN - 2.4%
Astra AB Class A Free shares 6,500 133,259
Hemkopskedjan AB, Series B 3,600 48,971
Incentive AB Class A 700 67,693
Industrial-Matematik International Corp. (a) 3,000 66,750
Svenska Handelsbanken 1,200 54,309
Volvo AB Class B 1,800 53,544
424,526
SWITZERLAND - 4.5%
Credit Suisse Group (Reg.) 835 183,541
Forbo Holding AG (Reg.) (a) 50 25,644
Julius Baer Holding AG 48 132,365
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
SWITZERLAND - CONTINUED
Moevenpick Holding AG (a) 100 $ 57,617
Nestle SA (Reg.) 70 135,682
Novartis AG (Reg.) 60 99,114
Swiss Bank Corp. (Reg.) 350 121,461
Von Roll Holding AG (a) 1,000 32,971
788,395
TURKEY - 0.1%
Yapi Ve Kredi Bankasi AS 500,000 24,500
UNITED KINGDOM - 15.1%
Alpha Airports Group PLC 25,000 39,264
ARM Holdings PLC sponsored ADR 700 28,263
BAT Industries PLC Ord. 7,500 70,675
Britax International PLC 10,500 28,420
Bank of Scotland 5,400 66,314
Barclays PLC Ord. 1,600 46,114
British Aerospace PLC 6,500 216,987
British Petroleum PLC Ord. 3,017 47,610
British Telecommunications PLC Ord. 4,800 52,049
Commercial Union PLC 6,300 117,786
Cordiant PLC 10,000 19,548
Corporate Services Group PLC 6,000 24,160
Courtaulds Textiles PLC 5,700 30,571
Devro PLC 13,500 122,478
Dr. Solomon's Group PLC sponsored ADR (a) 1,500 44,625
Glaxo Wellcome PLC 700 19,766
HSBC Holdings PLC Ord. 3,700 116,654
Hazlewood Foods PLC Ord. 19,000 60,316
Iceland Group PLC 15,000 55,763
Johnson Matthey PLC 2,000 20,250
KBC Advanced Technologies PLC 3,300 19,022
Kingfisher PLC 2,300 41,733
Lloyds TSB Group PLC 9,000 134,658
Mayflower Corp. 8,000 32,347
Minerva PLC 10,200 40,049
Misys PLC Ord. 702 33,721
National Westminster Bank PLC Ord. 1,000 19,999
Next PLC 3,000 24,811
Pearson PLC 2,500 39,138
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
UNITED KINGDOM - CONTINUED
Rentokil Initial PLC 3,000 $ 19,310
Saatchi & Saatchi PLC 67,200 177,399
Scholl PLC 6,000 37,593
Shell Transport & Trading Co. PLC (Reg.) 21,500 159,854
Siebe PLC 2,000 44,644
SmithKline Beecham PLC Ord. 9,034 107,620
Somerfield PLC 10,800 61,050
Unilever PLC Ord. 15,400 163,902
Ultra Electronics Holdings PLC 4,700 31,804
Vodafone Group PLC 9,016 98,669
Wickes PLC 15,000 88,218
Williams Holdings PLC Class L 3,000 23,007
Yorkshire Water PLC 5,000 40,099
2,666,260
UNITED STATES OF AMERICA - 0.3%
Global Telesystems Group, Inc. (a) 1,100 51,700
VENEZUELA - 0.1%
Compania Anonima Nacional Telefonos de Venezuela
sponsored ADR 600 20,100
TOTAL COMMON STOCKS
(Cost $13,693,178) 15,187,425
NONCONVERTIBLE PREFERRED STOCKS - 2.9%
GERMANY - 1.4%
Dyckerhoff AG (non-vtg.) 150 51,618
Porsche AG 15 38,254
SAP AG (Systeme Anwendungen Produkte) 220 112,701
Wella AG 44 40,670
243,243
ITALY - 1.5%
Telecom Italia Spa 29,100 153,323
Telecom Italia Mobile Spa de Risp 30,000 108,000
261,323
TOTAL PREFERRED STOCKS
(Cost $435,825) 504,566
CASH EQUIVALENTS - 10.9%
SHARES VALUE (NOTE 1)
Taxable Central Cash Fund (b)
(Cost $1,923,501) 1,923,501 $1,923,501
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $16,052,504) $ 17,615,492
LEGEND
(a) Non-income producing
(b) At period end, the seven-day yield of the Taxable Central Cash
Fund was 5.51%. The yield refers to the income earned by investing in
the fund over the seven-day period, expressed as an annual percentage.
OTHER INFORMATION
MARKET SECTOR DIVERSIFICATION (UNAUDITED)
As a Percentage of Total Value of Investment
in Securities
Aerospace & Defense 1.2%
Basic Industries 3.7
Cash Equivalents 10.9
Construction & Real Estate 4.1
Durables 4.9
Energy 4.2
Finance 20.4
Health 7.0
Holding Companies 0.2
Industrial Machinery & Equipment 6.1
Media & Leisure 5.5
Nondurables 5.6
Retail & Wholesale 6.0
Services 3.1
Technology 5.8
Transportation 0.8
Utilities 10.5
100.0%
INCOME TAX INFORMATION
At April 30, 1998, the aggregate cost of investment securities for
income tax purposes was $16,052,504. Net unrealized appreciation
aggregated $1,562,988, of which $1,938,272 related to appreciated
investment securities and $375,284 related to depreciated investment
securities.
FINANCIAL STATEMENTS

<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1998 (UNAUDITED)

ASSETS

INVESTMENT IN SECURITIES, AT VALUE (COST $16,052,504) - $ 17,615,492
SEE ACCOMPANYING SCHEDULE

FOREIGN CURRENCY HELD AT VALUE (COST $188,618) 188,399

RECEIVABLE FOR INVESTMENTS SOLD 729,512

RECEIVABLE FOR FUND SHARES SOLD 310,444

DIVIDENDS RECEIVABLE 48,559

INTEREST RECEIVABLE 6,517

PREPAID EXPENSES 56,818

RECEIVABLE FROM INVESTMENT ADVISER FOR EXPENSE REDUCTIONS 8,042

TOTAL ASSETS 18,963,783

LIABILITIES

PAYABLE TO CUSTODIAN BANK $ 17

PAYABLE FOR INVESTMENTS PURCHASED 1,444,946

PAYABLE FOR FUND SHARES REDEEMED 4,808

OTHER PAYABLES AND ACCRUED EXPENSES 49,338

TOTAL LIABILITIES 1,499,109

NET ASSETS $ 17,464,674

NET ASSETS CONSIST OF:

PAID IN CAPITAL $ 15,675,424

UNDISTRIBUTED NET INVESTMENT INCOME 9,216

ACCUMULATED UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON 219,695
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS

NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS 1,560,339
AND ASSETS AND LIABILITIES IN FOREIGN CURRENCIES

NET ASSETS $ 17,464,674

</TABLE>

STATEMENT OF ASSETS AND LIABILITIES - CONTINUED
APRIL 30, 1998 (UNAUDITED)

CALCULATION OF MAXIMUM OFFERING PRICE $11.80
CLASS A:
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
($590,752 (DIVIDED BY) 50,061 SHARES)

MAXIMUM OFFERING PRICE PER SHARE (100/94.25 OF $11.80) $12.52

CLASS T: $11.78
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
($7,461,610 (DIVIDED BY) 633,265 SHARES)

MAXIMUM OFFERING PRICE PER SHARE (100/96.50 OF $11.78) $12.21

CLASS B: $11.75
NET ASSET VALUE AND OFFERING PRICE PER SHARE
($2,582,981 (DIVIDED BY) 219,836 SHARES) A

CLASS C: $11.75
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE
PER SHARE ($1,367,626 (DIVIDED BY) 116,421 SHARES) A

INSTITUTIONAL CLASS: $11.81
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE
PER SHARE ($5,461,705 (DIVIDED BY) 462,536 SHARES)

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

<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF OPERATIONS
NOVEMBER 3, 1997 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1998 (UNAUDITED)

INVESTMENT INCOME $ 83,788
DIVIDENDS

INTEREST 32,845

116,633

LESS FOREIGN TAXES WITHHELD (8,408)

TOTAL INCOME 108,225

EXPENSES

MANAGEMENT FEE $ 35,526

TRANSFER AGENT FEES 9,740

DISTRIBUTION FEES 15,246

ACCOUNTING FEES AND EXPENSES 29,740

NON-INTERESTED TRUSTEES' COMPENSATION 13

CUSTODIAN FEES AND EXPENSES 53,812

REGISTRATION FEES 84,450

AUDIT 14,529

LEGAL 48

FOREIGN TAX EXPENSE 1,086

MISCELLANEOUS 223

TOTAL EXPENSES BEFORE REDUCTIONS 244,413

EXPENSE REDUCTIONS (145,404) 99,009

NET INVESTMENT INCOME 9,216

REALIZED AND UNREALIZED GAIN (LOSS)
NET REALIZED GAIN (LOSS) ON:

INVESTMENT SECURITIES 228,241

FOREIGN CURRENCY TRANSACTIONS (8,546) 219,695

CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON:

INVESTMENT SECURITIES 1,562,988

ASSETS AND LIABILITIES IN FOREIGN CURRENCIES (2,649) 1,560,339

NET GAIN (LOSS) 1,780,034

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 1,789,250
FROM OPERATIONS

</TABLE>

<TABLE>
<CAPTION>
<S> <C>
STATEMENT OF CHANGES IN NET ASSETS
NOVEMBER 3, 1997
(COMMENCEMENT
OF OPERATIONS) TO
APRIL 30, 1998
(UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS

OPERATIONS $ 9,216
NET INVESTMENT INCOME

NET REALIZED GAIN (LOSS) 219,695

CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) 1,560,339

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 1,789,250
FROM OPERATIONS

SHARE TRANSACTIONS - NET INCREASE (DECREASE) 15,675,424

TOTAL INCREASE (DECREASE) IN NET ASSETS 17,464,674

NET ASSETS

BEGINNING OF PERIOD -

END OF PERIOD (INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF $9,216) $ 17,464,674

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS A
PERIOD ENDED
APRIL 30, 1998 E

(UNAUDITED)

SELECTED PER-SHARE DATA

NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00

INCOME FROM INVESTMENT OPERATIONS

NET INVESTMENT INCOME D .02

NET REALIZED AND UNREALIZED GAIN (LOSS) 1.78

TOTAL FROM INVESTMENT OPERATIONS 1.80

NET ASSET VALUE, END OF PERIOD $ 11.80

TOTAL RETURN B, C 18.00%

RATIOS AND SUPPLEMENTAL DATA

NET ASSETS, END OF PERIOD (000 OMITTED) $ 591

RATIO OF EXPENSES TO AVERAGE NET ASSETS 2.02% A, F

RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS .33% A

PORTFOLIO TURNOVER 152% A

AVERAGE COMMISSION RATE G $ .0051

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 RETURN DOES 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 NOVEMBER 3, 1997 (COMMENCEMENT OF SALE OF CLASS A
SHARES) TO APRIL 30, 1998.
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 A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE
FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY
VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF
TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND
COMMISSION RATE STRUCTURES MAY DIFFER.
FINANCIAL HIGHLIGHTS - CLASS T
PERIOD ENDED
APRIL 30, 1998 E

(UNAUDITED)

SELECTED PER-SHARE DATA

NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00

INCOME FROM INVESTMENT OPERATIONS

NET INVESTMENT INCOME D .01

NET REALIZED AND UNREALIZED GAIN (LOSS) 1.77

TOTAL FROM INVESTMENT OPERATIONS 1.78

NET ASSET VALUE, END OF PERIOD $ 11.78

TOTAL RETURN B, C 17.80%

RATIOS AND SUPPLEMENTAL DATA

NET ASSETS, END OF PERIOD (000 OMITTED) $ 7,462

RATIO OF EXPENSES TO AVERAGE NET ASSETS 2.28% A, F

RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS .12% A

PORTFOLIO TURNOVER 152% A

AVERAGE COMMISSION RATE G $ .0051

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 RETURN DOES 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 NOVEMBER 3, 1997 (COMMENCEMENT OF SALE OF CLASS T
SHARES) TO APRIL 30, 1998.
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 A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE
FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY
VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF
TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND
COMMISSION RATE STRUCTURES MAY DIFFER.
FINANCIAL HIGHLIGHTS - CLASS B
PERIOD ENDED
APRIL 30, 1998 E

(UNAUDITED)

SELECTED PER-SHARE DATA

NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00

INCOME FROM INVESTMENT OPERATIONS

NET INVESTMENT INCOME (LOSS) D (.02)

NET REALIZED AND UNREALIZED GAIN (LOSS) 1.77

TOTAL FROM INVESTMENT OPERATIONS 1.75

NET ASSET VALUE, END OF PERIOD $ 11.75

TOTAL RETURN B, C 17.50%

RATIOS AND SUPPLEMENTAL DATA

NET ASSETS, END OF PERIOD (000 OMITTED) $ 2,583

RATIO OF EXPENSES TO AVERAGE NET ASSETS 2.79% A, F

RATIO OF NET INVESTMENT INCOME (LOSS) TO AVERAGE NET ASSETS (.29)% A

PORTFOLIO TURNOVER 152% A

AVERAGE COMMISSION RATE G $ .0051

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 RETURN DOES NOT INCLUDE THE CONTINGENT DEFERRED SALES CHARGE
AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D NET INVESTMENT INCOME (LOSS) 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 B
SHARES) TO APRIL 30, 1998.
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 A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE
FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY
VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF
TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND
COMMISSION RATE STRUCTURES MAY DIFFER.
FINANCIAL HIGHLIGHTS - CLASS C
PERIOD ENDED
APRIL 30, 1998 E

(UNAUDITED)

SELECTED PER-SHARE DATA

NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00

INCOME FROM INVESTMENT OPERATIONS

NET INVESTMENT INCOME (LOSS) D (.03)

NET REALIZED AND UNREALIZED GAIN (LOSS) 1.78

TOTAL FROM INVESTMENT OPERATIONS 1.75

NET ASSET VALUE, END OF PERIOD $ 11.75

TOTAL RETURN B, C 17.50%

RATIOS AND SUPPLEMENTAL DATA

NET ASSETS, END OF PERIOD (000 OMITTED) $ 1,368

RATIO OF EXPENSES TO AVERAGE NET ASSETS 2.78% A, F

RATIO OF NET INVESTMENT INCOME (LOSS) TO AVERAGE NET ASSETS (.51)% A

PORTFOLIO TURNOVER 152% A

AVERAGE COMMISSION RATE G $ .0051

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 RETURN DOES NOT INCLUDE THE CONTINGENT DEFERRED SALES CHARGE
AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D NET INVESTMENT INCOME (LOSS) 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 APRIL 30, 1998.
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 A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE
FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY
VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF
TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND
COMMISSION RATE STRUCTURES MAY DIFFER.
FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS
PERIOD ENDED
APRIL 30, 1998 E

(UNAUDITED)

SELECTED PER-SHARE DATA

NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00

INCOME FROM INVESTMENT OPERATIONS

NET INVESTMENT INCOME D .02

NET REALIZED AND UNREALIZED GAIN (LOSS) 1.79

TOTAL FROM INVESTMENT OPERATIONS 1.81

NET ASSET VALUE, END OF PERIOD $ 11.81

TOTAL RETURN B, C 18.10%

RATIOS AND SUPPLEMENTAL DATA

NET ASSETS, END OF PERIOD (000 OMITTED) $ 5,462

RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.76% A, F

RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS .41% A

PORTFOLIO TURNOVER 152% A

AVERAGE COMMISSION RATE G $ .0051

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 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
INSTITUTIONAL CLASS SHARES) TO APRIL 30, 1998.
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 A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE
FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY
VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF
TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND
COMMISSION RATE STRUCTURES MAY DIFFER.
NOTES TO FINANCIAL STATEMENTS
For the period ended April 30, 1998 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Advisor International Capital Appreciation 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. 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 require management to
make certain estimates and assumptions at the date of the financial
statements. The following summarizes the significant accounting
policies of the fund:
SECURITY VALUATION. 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. If trading or events occurring in other markets
after the close of the principal market in which securities are traded
is expected to materially affect the value of those securities, then
they are valued at their fair value taking this trading or these
events into account. Fair value is determined in good faith under
consistently applied procedures under the general supervision of the
Board of Trustees.
Securities for which quotations are not readily available are valued
primarily using dealer-supplied valuations or at their fair value.
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. Equity securities that have reached the limit for
aggregate foreign ownership may trade at a premium to the local share
price. If the broker-quoted premium is not readily available as a
result of limited share activity, the securities are valued at the
last sale price of the local share in the principal market in which
such securities are normally traded.
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
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
FOREIGN CURRENCY TRANSLATION - CONTINUED
period end. Purchases and sales of securities, income receipts and
expense payments are translated into U.S. dollars at the prevailing
exchange rate on the respective dates of the transactions.
Net realized gains and losses on foreign currency transactions
represent net gains and losses from sales and maturities of foreign
currency contracts, disposition of foreign currencies, the difference
between the amount of net investment income accrued and the U.S.
dollar amount actually received, and gains and losses between trade
date and settlement on purchases and sales of securities. The effects
of changes in foreign currency exchange rates on investments in
securities are included with the net realized and unrealized gain or
loss on investment securities.
INCOME TAXES. The fund intends to qualify as a regulated investment
company under Subchapter M of the Internal Revenue Code. By so
qualifying, the fund will not be subject to 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. Dividend income is recorded on the ex-dividend
date, except certain dividends from foreign securities where the
ex-dividend date may have passed, are recorded as soon as the fund is
informed of the ex-dividend date. Non-cash dividends included in
dividend income, if any, are recorded at the fair market value of the
securities received. Interest income is accrued as earned. Investment
income is recorded net of foreign taxes withheld where recovery of
such taxes is uncertain.
EXPENSES. Most expenses of the trust can be directly attributed to a
fund. Expenses which cannot be directly attributed are apportioned
among the funds in the trust.
PREPAID EXPENSES. Fidelity Management & Research Company (FMR) bears
all organizational expenses except for registering and qualifying each
class and shares of each class for distribution under federal and
state securities law. These expenses are borne by each class and
amortized over one year.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions 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 may result in distribution
reclassifications.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
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.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission (the SEC), the fund, along with
other affiliated entities of FMR, may transfer uninvested cash
balances into one or more joint trading accounts. These balances are
invested in one or more repurchase agreements 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.
TAXABLE CENTRAL CASH FUND. Pursuant to an Exemptive Order issued by
the SEC, the fund may invest in the Taxable Central Cash Fund (the
Cash Fund) managed by Fidelity Investments Money Management, Inc.,
(formerly FMR Texas, Inc.) an affiliate of FMR. The Cash Fund is an
open-end money market fund available only to investment companies and
other accounts managed by FMR and its affiliates. The Cash Fund seeks
preservation of capital, liquidity, and current income by investing in
U.S. Treasury securities and repurchase agreements for these
securities. Income distributions from the Cash Fund are declared daily
and paid monthly from net interest income. Income distributions earned
by the fund are recorded as interest income in the accompanying
financial statements.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $21,014,204 and $7,113,442, 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 .2500% to .5200% for the
period. The annual individual fund fee rate is .45%. 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 annualized rate of .75% of average net
assets.
SUB-ADVISER FEE. FMR, on behalf of the fund, entered into sub-advisory
agreements with Fidelity Management & Research (U.K.) Inc., Fidelity
Management & Research (Far East) Inc., Fidelity International
Investment Advisors (FIIA), and Fidelity Investments Japan Limited
(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. For the period, this fee was based on the following
annual rates of the average net assets of each applicable class:
CLASS A .25%

CLASS T .50%

CLASS B 1.00% *

CLASS C 1.00% *

CLASS A $ 386 $ 386 $ -

CLASS T 7,414 5,668 1,746

CLASS B 4,502 1,125 3,377

CLASS C 2,944 - 2,944

$ 15,246 $ 7,179 $ 8,067

CLASS T 59

CLASS B 39

CLASS C 2,563

CLASS A $ 8,088 $ 5,286

CLASS T 25,249 16,766

CLASS B 5 0 *

CLASS C 247 0 *

$ 33,589 $ 22,052

* 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.
TRANSFER AGENT FEES. Fidelity Investments Institutional Operations
Company, Inc., (FIIOC), an affiliate of FMR, is the transfer, dividend
disbursing and shareholder servicing agent for each class of the fund
(collectively referred to as the transfer agent) for the fund's Class
A, Class T, Class B, Class C and Institutional Class. FIIOC receives
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, except proxy statements. For the period, the
following amounts were paid to FIIOC:
AMOUNT % OF
AVERAGE
NET ASSETS

CLASS A $ 575 .37 *

CLASS T 3,520 .24 *

CLASS B 1,362 .30 *

CLASS C 913 .31 *

INSTITUTIONAL CLASS 3,370 .14 *

$ 9,740

* ANNUALIZED.
ACCOUNTING FEES. Fidelity Services Company, Inc. maintains the fund's
accounting records. The fee is based on the level of average net
assets for the month plus out-of-pocket expenses.
BROKERAGE COMMISSIONS. The fund placed a portion of its portfolio
transactions with brokerage firms which are affiliates of FMR. The
commissions paid to these affiliated firms were $105 for the period.
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 2.00% $ 17,998

CLASS T 2.25% 36,546

CLASS B 2.75% 22,312

CLASS C 2.75% 18,367

INSTITUTIONAL CLASS 1.75% 50,166

$ 145,389

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 $15 under the custodian
arrangement.
6. BENEFICIAL INTEREST.
At the end of the period, FMR was record owner of approximately 34% of
the total outstanding shares of the fund.
7. SHARE TRANSACTIONS.
Share transactions for each class of shares were as follows:
SHARES DOLLARS

NOVEMBER 3, 1997 NOVEMBER 3, 1997
(COMMENCEMENT (COMMENCEMENT
OF OPERATIONS) TO OF OPERATIONS) TO
APRIL 30, APRIL 30,

1998 1998

CLASS A 52,087 $ 547,853
SHARES SOLD

SHARES REDEEMED (2,026) (22,802)

NET INCREASE (DECREASE) 50,061 $ 525,051

CLASS T 649,353 $ 7,050,323
SHARES SOLD

SHARES REDEEMED (16,088) (179,168)

NET INCREASE (DECREASE) 633,265 $ 6,871,155

CLASS B 223,094 $ 2,437,811
SHARES SOLD

SHARES REDEEMED (3,258) (37,403)

NET INCREASE (DECREASE) 219,836 $ 2,400,408

CLASS C 129,752 $ 1,400,959
SHARES SOLD

SHARES REDEEMED (13,331) (147,949)

NET INCREASE (DECREASE) 116,421 $ 1,253,010

INSTITUTIONAL CLASS 462,536 $ 4,625,800
SHARES SOLD

8. REGISTRATION FEES.
For the period, each class paid the following amounts to register its
shares for sale:
REGISTRATION
FEES

CLASS A $ 15,923

CLASS T 17,821

CLASS B 16,430

CLASS C 14,232

INSTITUTIONAL CLASS 20,044

$ 84,450

INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
INVESTMENT SUB-ADVISERS
Fidelity Management & Research
(U.K.) Inc., London, England
Fidelity Management & Research
(Far East) Inc., Tokyo, Japan
Fidelity International Investment Advisors
Fidelity International Investment Advisors (U.K.) Limited
Fidelity Investments Japan Limited
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Richard Spillane, Jr., Vice President
Kevin McCarey, 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 AGENTS
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
CUSTODIAN
Brown Brothers Harriman & Co.
Boston, MA
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
MONEY MARKET FUNDS
Prime Fund
Treasury Fund
Tax-Exempt Fund

(REGISTERED TRADEMARK)

(2_FIDELITY_LOGOS)FIDELITY ADVISOR

(REGISTERED TRADEMARK)
GINNIE MAEINTERNATIONAL
CAPITAL APPRECIATION
FUND - INSTITUTIONAL CLASS
SEMIANNUAL REPORT
APRIL 30, 1998
CONTENTS

PRESIDENT'S MESSAGE 3 NED JOHNSON ON INVESTING STRATEGIES.

PERFORMANCE 4 HOW THE FUND HAS DONE OVER TIME.

FUND TALK 6 THE MANAGER'S REVIEW OF FUND
PERFORMANCE, STRATEGY AND OUTLOOK.

INVESTMENT SUMMARY 9 A SUMMARY OF THE FUND'S INVESTMENTS.

INVESTMENTS 10 A COMPLETE LIST OF THE FUND'S INVESTMENTS
WITH THEIR MARKET VALUES.

FINANCIAL STATEMENTS 19 STATEMENTS OF ASSETS AND LIABILITIES,
OPERATIONS, AND CHANGES IN NET ASSETS,
AS WELL AS FINANCIAL HIGHLIGHTS.

NOTES 28 NOTES TO THE FINANCIAL STATEMENTS.

(photo_of_Edward_C_Johnson_3d)
DEAR SHAREHOLDER:
Low interest rates and subdued inflation were two main factors that
bolstered stock and bond markets in the U.S. during the first four
months of 1998. The stock market continued to soar to record heights
as corporate earnings proved to be stronger than expected and
investors shrugged off concerns about the effects of economic
difficulties in Asia. The Federal Reserve Board continued its steady
interest rate policy, which boosted the performance of bonds.
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.
First, investors are encouraged to take a long-term view of their
portfolios. If you can afford to leave your money invested through the
inevitable up and down cycles of the financial markets, you will
greatly reduce your vulnerability to any single decline. We know from
experience, for example, that stock prices have gone up over longer
periods of time, have significantly outperformed other types of
investments and have stayed ahead of inflation.
Second, you can further manage your investing risk through
diversification. A stock mutual fund, for instance, is already
diversified, because it invests in many different companies. You can
increase your diversification further by investing in a number of
different stock funds, or in such other investment categories as
bonds. If you have a short investment time horizon, you might want to
consider moving some of your investment into a money market fund,
which seeks income and a stable share price by investing in
high-quality, short-term investments. 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
FIDELITY ADVISOR INTERNATIONAL CAPITAL APPRECIATION FUND -
INSTITUTIONAL CLASS
PERFORMANCE: THE BOTTOM LINE

FIDELITY ADV INTL CAP APP - INST CL 18.10%

MSCI WORLD EX US 12.52%

CUMULATIVE TOTAL RETURNS show Institutional Class performance in
percentage terms over a set period - in this case, since the fund
started on November 3, 1997. 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 the performance of the Morgan Stanley Capital International
AC World Index Free ex USA (MSCI World ex US) - an unmanaged, market
capitalization weighted index that is designed to represent the
performance of developed stock markets, excluding the United States,
throughout the world. This benchmark includes reinvested dividends and
capital gains, if any.
AVERAGE ANNUAL TOTAL RETURNS
AVERAGE ANNUAL TOTAL RETURNS take Institutional Class' cumulative
return and show you what would have happened if Institutional Class
shares' had performed at a constant rate each year. These numbers will
be reported once the fund is a year old.
$10,000 OVER LIFE OF FUND
FA Intl Cap App -CL I MS World ex USA (Gross)
00291 MS025
1997/11/03 10000.00 10000.00
1997/11/30 9740.00 9717.68
1997/12/31 9950.00 9829.52
1998/01/31 10230.00 10123.55
1998/02/28 10910.00 10799.04
1998/03/31 11540.00 11172.17
1998/04/30 11810.00 11252.19
IMATRL PRASUN SHR__CHT 19980430 19980507 145401 R00000000000009
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Advisor International Capital Appreciation Fund -
Institutional Class on November 3, 1997, when the fund started. As the
chart shows, by April 30, 1998, the value of the investment would have
grown to $11,810 - an 18.10% increase on the initial investment. For
comparison, look at how the Morgan Stanley Capital International AC
World Index Free ex USA did over the same period. With dividends
reinvested, the same $10,000 would have grown to $11,252 - a 12.52%
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)
FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
During the six-months that ended
April 30, 1998, some of the world's
financial markets enjoyed robust
growth, while others continued to
unravel. For the period, the
Morgan Stanley Capital
International EAFE Index - which
measures stock performance in
Europe, Australia and the Far East
- - returned 15.56%. Most
economies in Europe continued to
thrive amidst an environment of
relatively benign inflation and
reduced interest rates, as many
countries prepared for the advent
of the European Monetary Union in
January 1999. Many corporations
followed the path to efficiency
through restructuring and merger
and acquisition activity. Strong
individual performers included
Portugal, Spain and Italy. Latin
American markets struggled,
however, as economic turmoil in
Southeast Asia prompted a
massive sell-off of most
emerging-market stocks at the
beginning of the period. The
Brazilian market rebounded,
performing fairly well during the
period after interest rates fell, but
Mexico and Venezuela were victims
of plummeting oil prices at the end
of 1997. Southeast Asian markets
- - the origin of most of the volatility
in emerging markets - performed
poorly. The depreciation of many
currencies in the region prompted
central banks to dramatically raise
interest rates, slowing economies
by making borrowing more
expensive. Japan suffered from
sharply falling stock prices and
depreciating currencies, while the
failure of several Japanese
financial firms raised concerns
about widespread corporate
bankruptcies. Hong Kong fared
significantly better than other Asian
markets because of its more mature
and less volatile nature.
An interview with Kevin McCarey, Portfolio Manager of Fidelity Advisor
International Capital Appreciation Fund
Q. HOW DID THE FUND PERFORM, KEVIN?
A. The fund got off to a good start. From November 3, 1997 - the
fund's inception date - through April 30, 1998, the fund's
Institutional Class shares returned 18.10%. The Morgan Stanley Capital
International AC World Index Free ex USA returned 12.52% during that
period. Future reports will show the fund's performance over six- and
12-month periods.
Q. WHAT TYPES OF INVESTMENTS HAVE YOU FOCUSED ON IN THE SHORT TIME THE
FUND HAS BEEN UP AND RUNNING?
A. Although international markets have been quite volatile since the
fund's launch, I've perused the globe for different opportunities over
the past six months. At the end of the period, the fund's two largest
industry weightings were in the finance and utilities sectors. Finance
stocks have done quite well over the past couple of years, due to a
combination of favorable economic climates and positive restructuring
stories. Examples held in the portfolio included Grupo Financiero
Bancomer in Mexico and Credito Italiano in Italy. Utilities have been
attractive to me primarily due to the amazing growth in worldwide
telecommunications demand. The fund's single-largest holding at the
end of the period, in fact, was the large Brazilian telecom company,
Telebras. This fund has a fairly flexible mandate in that it can
pursue investment opportunities in both developed countries and
emerging-market countries.
Q. WHAT ARE THE DIFFERENCES BETWEEN DEVELOPED AND EMERGING-MARKET
COUNTRIES?
A. In a nutshell, developed regions - such as Germany and the United
Kingdom - tend to have more mature economies and more efficient
trading markets, but slower gross domestic product (GDP) growth.
Emerging-market countries, on the other hand, tend to be more volatile
with less stable economies and governments. However, GDP growth is
typically faster, and some markets tend to be less liquid. The risk of
sharp currency devaluations is also more likely in emerging-market
regions, as we most recently saw in Southeast Asia in late 1997. With
solid research, though - and I feel we have one of the best global
research groups in the industry - I'm confident that we can capture
some of the attractive return potential inherent in these types of
investments. I think there are a lot of interesting emerging-market
opportunities out there, given the current press about this area.
Q. WHAT DID YOU LIKE ABOUT TELEBRAS?
A. Telebras is an emerging-market position that I found to be one of
the cheapest companies of its kind in the world. The company is
currently in the midst of splitting up into one long-distance company
and several local operating companies - much like AT&T's split into
one long-distance company and the Baby Bells back in the 1980s. In the
case of Telebras, the company is going one step further by breaking
its fixed-line businesses - or standard phone lines into homes - away
from its cellular phone businesses. I think this move may unlock a lot
of value in Telebras. Since there is lots of room to grow in Brazil, I
also expect that the Telebras companies will continue to experience
strong subscriber growth rates. Fixed lines are growing at a 12% to
14% clip, but less than 10% of the population has a phone. In
contrast, developed economies typically have a 60% phone penetration
rate. Additionally, cellular subscriber growth rates are even faster
due to even lower penetration levels.
Q. THE FUND ALSO HAD SIGNIFICANT POSITIONS IN MEDISON CO. AND NCL
HOLDINGS . . .
A. The fund's position in Medison illustrates my investment strategy
of focusing on individual stock selection rather than country
selection. Medison is a South Korean-based manufacturer of ultrasound
equipment and, while Korea itself has had its share of economic
problems, I've been attracted to this particular stock. The company
has been effective in generating low-cost products and has decent new
technology as well. NCL Holdings symbolizes the nice run that leisure
stocks have had recently. NCL is the world's third-largest cruise ship
operator, and its business and revenues have been growing steadily.
Q. WHAT'S YOUR OUTLOOK?
A. Many of the positive factors that have fueled the European markets
should remain in place. We've seen strong economies, low interest
rates, high consumer confidence and beneficial corporate
restructurings. To add a word of caution, though, European markets
have been on a roll for quite some time and I wouldn't be surprised to
see some form of stock price consolidation. On the emerging-market
front, medium-term prospects look good, but I wouldn't attempt to
predict short-term prospects. Many countries have had setbacks lately
and that could make for some good bargain shopping going forward.
Lastly, while Japan has certainly had its share of economic problems,
we've seen flickers of positive trends lately.
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.