(2_FIDELITY_LOGOS)(registered trademark)
FIDELITY ADVISOR
OVERSEAS
FUND - CLASS A, CLASS T, CLASS B AND CLASS C
SEMIANNUAL REPORT
APRIL 30, 1999
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 15 A summary of major shifts in
the fund's investments over
the past six months.
INVESTMENTS 16 A complete list of the fund's
investments with their
market values.
FINANCIAL STATEMENTS 30 Statements of assets and
liabilities, operations, and
changes in net assets, as
well as financial highlights.
NOTES 39 Notes to the financial
statements.
Third party marks appearing herein are the property of their
respective owners.
All other marks appearing herein are registered or unregistered
trademarks or service marks of FMR Corp. or an affiliated company.
This report is printed on recycled paper using soy-based inks.
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:
With 13 record-high closings, the Dow Jones Industrial Average surged
nearly 1,000 points in April. What's particularly noteworthy about
this performance is that, in some cases, gains were fueled by a
rotation out of growth stocks and into issues more sensitive to
economic swings. The strength in blue chips, combined with heavy
global, corporate and agency bond issuance, contributed to the
downward pressure on government security prices.
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 an investment in a money market fund is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. Although money market funds seek to preserve the
value of your investment at $1.00 per share, it is possible to lose
money by investing in these types of funds.
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. Of course, you should
consider your financial ability to continue your purchases through
periods of low price levels before undertaking such a strategy.
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 shares' 0.50% 12b-1 fee (0.65% prior to
January 1, 1996). If Fidelity had not reimbursed certain class
expenses, the past one year, five years and life of fund 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.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CUMULATIVE TOTAL RETURNS
PERIODS ENDED APRIL 30, 1999 PAST 6 MONTHS PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
FIDELITY ADV OVERSEAS - CL A 15.80% 2.26% 54.79% 125.81%
FIDELITY ADV OVERSEAS - CL A 9.14% -3.62% 45.89% 112.82%
(INCL. 5.75% SALES CHARGE)
MSCI EAFE(registered trademark) 15.40% 9.74% 52.59% 104.01%
International Funds Average 15.11% 3.24% 50.24% n/a
</TABLE>
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 - a market
capitalization-weighted index that is designed to represent the
performance of developed stock markets outside the United States and
Canada. As of April 30, 1999, the index included over 1,022 equity
securities of companies domiciled in 21 countries. 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 Inc. The past
six months average represents a peer group of 597 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, 1999 PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
FIDELITY ADV OVERSEAS - CL A 2.26% 9.13% 9.44%
FIDELITY ADV OVERSEAS - CL A -3.62% 7.85% 8.73%
(INCL. 5.75% SALES CHARGE)
MSCI EAFE 9.74% 8.82% 8.22%
International Funds Average 3.24% 8.29% 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 (Net MA tax)
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
1998/05/31 20777.24 18503.19
1998/06/30 20563.27 18646.59
1998/07/31 20720.93 18839.02
1998/08/31 16948.37 16508.44
1998/09/30 16903.33 16005.92
1998/10/31 18378.57 17678.06
1998/11/30 19437.14 18587.25
1998/12/31 19842.06 19324.04
1999/01/31 20127.80 19270.51
1999/02/28 19590.61 18814.77
1999/03/31 20402.12 19603.86
1999/04/30 21282.21 20401.34
IMATRL PRASUN SHR__CHT 19990430 19990514 110859 R00000000000112
$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, 1999, the value of the
investment would have grown to $21,282 - a 112.82% 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 $20,401 - a 104.01% increase.
(checkmark)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.
FIDELITY ADVISOR OVERSEAS FUND - CLASS T
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). 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.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CUMULATIVE TOTAL RETURNS
PERIODS ENDED APRIL 30, 1999 PAST 6 MONTHS PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
FIDELITY ADV OVERSEAS - CL T 15.66% 2.09% 54.62% 125.55%
FIDELITY ADV OVERSEAS - CL T 11.61% -1.48% 49.20% 117.66%
(INCL. 3.50% SALES CHARGE)
MSCI EAFE 15.40% 9.74% 52.59% 104.01%
International Funds Average 15.11% 3.24% 50.24% n/a
</TABLE>
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 - a market
capitalization-weighted index that is designed to represent the
performance of developed stock markets outside the United States and
Canada. As of April 30, 1999, the index included over 1,022 equity
securities of companies domiciled in 21 countries. 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 Inc. The past
six months average represents a peer group of 597 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, 1999 PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
FIDELITY ADV OVERSEAS - CL T 2.09% 9.11% 9.43%
FIDELITY ADV OVERSEAS - CL T -1.48% 8.33% 9.00%
(INCL. 3.50% SALES CHARGE)
MSCI EAFE 9.74% 8.82% 8.22%
International Funds Average 3.24% 8.29% 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 (Net MA tax)
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
1998/05/31 21274.55 18503.19
1998/06/30 21057.58 18646.59
1998/07/31 21217.45 18839.02
1998/08/31 17346.24 16508.44
1998/09/30 17311.98 16005.92
1998/10/31 18819.35 17678.06
1998/11/30 19892.79 18587.25
1998/12/31 20311.77 19324.04
1999/01/31 20600.29 19270.51
1999/02/28 20034.79 18814.77
1999/03/31 20865.73 19603.86
1999/04/30 21765.91 20401.34
IMATRL PRASUN SHR__CHT 19990430 19990514 111918 R00000000000112
$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, 1999, the value of the
investment would have grown to $21,766 - a 117.66% 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 $20,401 - a 104.01% increase.
(checkmark)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.
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 shares' prior 0.65% 12b-1 fee. Had Class B shares' 12b-1 fee
been reflected, returns prior to July 3, 1995 would have been lower.
Class B shares' 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.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CUMULATIVE TOTAL RETURNS
PERIODS ENDED APRIL 30, 1999 PAST 6 MONTHS PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
FIDELITY ADV OVERSEAS - CL B 15.27% 1.51% 51.08% 120.40%
FIDELITY ADV OVERSEAS - CL B 10.27% -3.49% 49.08% 120.40%
(INCL. CONTINGENT DEFERRED
SALES CHARGE)
MSCI EAFE 15.40% 9.74% 52.59% 104.01%
International Funds Average 15.11% 3.24% 50.24% 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 - a market
capitalization-weighted index that is designed to represent the
performance of developed stock markets outside the United States and
Canada. As of April 30, 1999, the index included over 1,022 equity
securities of companies domiciled in 21 countries. 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 Inc. The past
six months average represents a peer group of 597 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, 1999 PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
FIDELITY ADV OVERSEAS - CL B 1.51% 8.60% 9.15%
FIDELITY ADV OVERSEAS - CL B -3.49% 8.31% 9.15%
(INCL. CONTINGENT DEFERRED
SALES CHARGE)
MSCI EAFE 9.74% 8.82% 8.22%
International Funds Average 3.24% 8.29% 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 (Net MA tax)
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
1998/05/31 21664.49 18503.19
1998/06/30 21426.68 18646.59
1998/07/31 21569.37 18839.02
1998/08/31 17645.50 16508.44
1998/09/30 17586.05 16005.92
1998/10/31 19119.93 17678.06
1998/11/30 20190.07 18587.25
1998/12/31 20612.57 19324.04
1999/01/31 20888.37 19270.51
1999/02/28 20312.80 18814.77
1999/03/31 21140.18 19603.86
1999/04/30 22039.50 20401.34
IMATRL PRASUN SHR__CHT 19990430 19990514 110903 R00000000000112
$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, 1999,
the value of the investment would have been $22,040 - a 120.40%
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 $20,401 - a 104.01%
increase.
(checkmark)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.
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
shares' prior 0.65% 12b-1 fee. Had Class C shares' 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.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CUMULATIVE TOTAL RETURNS
PERIODS ENDED APRIL 30, 1999 PAST 6 MONTHS PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
FIDELITY ADV OVERSEAS - CL C 15.47% 1.52% 51.10% 120.43%
FIDELITY ADV OVERSEAS - CL C 14.47% 0.52% 51.10% 120.43%
(INCL. CONTINGENT DEFERRED
SALES CHARGE)
MSCI EAFE 15.40% 9.74% 52.59% 104.01%
International Funds Average 15.11% 3.24% 50.24% 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 - a market
capitalization-weighted index that is designed to represent the
performance of stock markets outside the United States and Canada. As
of April 30, 1999, the index included over 1,022 equity securities of
companies domiciled in 21 countries. 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 Inc. The past six
months average represents a peer group of 597 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, 1999 PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
FIDELITY ADV OVERSEAS - CL C 1.52% 8.61% 9.15%
FIDELITY ADV OVERSEAS - CL C 0.52% 8.61% 9.15%
(INCL. CONTINGENT DEFERRED
SALES CHARGE)
MSCI EAFE 9.74% 8.82% 8.22%
International Funds Average 3.24% 8.29% 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 (Net MA tax)
00485 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 18479.42 15925.71
1997/12/31 18612.04 16067.61
1998/01/31 19195.12 16805.43
1998/02/28 20256.34 17886.86
1998/03/31 21154.29 18441.00
1998/04/30 21714.05 18590.00
1998/05/31 21667.40 18503.19
1998/06/30 21422.50 18646.59
1998/07/31 21574.11 18839.02
1998/08/31 17644.12 16508.44
1998/09/30 17585.81 16005.92
1998/10/31 19090.17 17678.06
1998/11/30 20186.37 18587.25
1998/12/31 20603.40 19324.04
1999/01/31 20886.61 19270.51
1999/02/28 20308.39 18814.77
1999/03/31 21146.22 19603.86
1999/04/30 22043.04 20401.34
IMATRL PRASUN SHR__CHT 19990430 19990514 111918 R00000000000112
$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, 1999,
the value of the investment would have been $22,043 - a 120.43%
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 $20,401 - a 104.01%
increase.
(checkmark)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.
FUND TALK: THE MANAGER'S OVERVIEW
MARKET RECAP
In recent months, the black cloud
hanging over many global
economies last fall began to give
way to brighter forecasts. Although
it is too soon to tell whether rallies in
Latin America, Japan and Asia
are sustainable, they did represent
an important turning point. During
the six-month period ending April 30,
1999, the Morgan Stanley Capital
International EAFE Index - which
measures the performance of stock
markets in Europe, Australasia and
the Far East - returned 15.40%.
While the global economy still has
many obstacles to overcome,
government initiatives to aid banks,
corporate restructuring in Japan
and stable currencies in Asia and
emerging markets improved investor
sentiment. Turning to Europe, the
indexes posted mixed results as
volatility prevailed. Toward the end
of 1998, European stocks surged in
response to a strong U.S. market,
increased merger and acquisition
activity and enthusiasm about the
European Union's single currency
- - the euro. Many European markets
stalled in 1999, however, as the
outlook for economic growth and
corporate profits deteriorated. The
U.K. stock market was among the
strongest performers in Europe as
the economy improved amid a
favorable environment of declining
interest rates and encouraging
earnings growth. Elsewhere, positive
economic developments in the form
of lower-than-expected inflation
reports and signs that commodity
prices had bottomed fueled optimism
in Brazil and Mexico.
(photograph of Richard Mace)
An interview with Richard Mace, Portfolio Manager of Fidelity Advisor
Overseas Fund
Q. HOW DID THE FUND PERFORM, RICK?
A. For the six months that ended April 30, 1999, the fund's Class A,
Class T, Class B and Class C shares returned 15.80%, 15.66%, 15.27%
and 15.47%, respectively. The Morgan Stanley Capital International
Europe, Australasia, Far East (EAFE) Index returned 15.40% during that
time. The international funds average, as tracked by Lipper Inc., had
a six-month return of 15.11% as of April 30, 1999. For the 12 months
that ended April 30, 1999, the fund's Class A, Class T, Class B and
Class C shares returned 2.26%, 2.09%, 1.51% and 1.52%, respectively.
The EAFE index and Lipper average returned 9.74% and 3.24%,
respectively, during the same time.
Q. WHAT FACTORS CONTRIBUTED POSITIVELY TO THE FUND'S PERFORMANCE
DURING THE PAST SIX-MONTH PERIOD?
A. Good stock selection in several industries - including
telecommunications - helped performance. The telecommunications
industry has undergone a major transformation, sparked primarily by
worldwide privatization, deregulation and technological advances. This
spawned a rash of mergers, acquisitions and alliances among industry
participants seeking to expand their global market shares and defend
their positions at home. The fund's stakes in companies such as
Japan's NTT Mobile and DDI Corp., and the United Kingdom's British
Telecommunications and Vodafone Group performed very well. The fund's
energy-related investments - including Elf Aquitane, BP Amoco and
Shell - also performed well as the price of oil perked up again.
Q. WHAT FACTORS HINDERED THE FUND'S PERFORMANCE?
A. A major underweighting - relative to the EAFE index - in Japanese
banks detracted from performance. Bank shares in general soared
following the Japanese government's unveiling of a plan to inject
capital into the country's troubled banking system. I could find no
great benefit to the shareholders of these banks, so I decided to
avoid them. In addition, the fund's food and household products
positions declined during the period, namely Swiss-based Nestle and
France's Group Danone. These companies were hit particularly hard as
investors became concerned that economic weakness would bite into
their sales.
Q. WHICH OTHER INVESTMENTS STOOD OUT AMONG THE FUND'S TOP
CONTRIBUTORS?
A. The fund's long-standing position in Finnish telecom company Nokia
generated good results. When I looked at the stock a year and a half
ago, it was trading at a price-to-earnings (P/E) ratio of 20 and the
company was growing its earnings at an annual clip of 30% to 40%. On
that basis, when I compared Nokia to its counterpart growth stocks in
the U.S., the stock should have been trading at a higher P/E multiple.
Thus, I felt the valuation was attractive.
Q. THE FUND'S COMBINED INVESTMENTS IN JAPAN, THE U.K. AND FRANCE
TOTALED 51% AT THE CLOSE OF THE PERIOD. HOW DID YOU POSITION THE FUND
WITHIN THESE MARKETS AND HOW DID EACH PERFORM?
A. The fund was underweighted - at 17% and 21%, respectively - in both
Japan and the U.K. relative to the EAFE index during the period. At
13%, the fund was overweighted in France. The underweighting in Japan
hurt somewhat, as the Japanese market turned the corner a bit and beat
the EAFE's return over the past six months. The fund's U.K. positions,
while moderately underweighted relative to the index, outperformed the
index. The fund's investments in France performed well for the most
part, but the weak performance of the euro muted much of that
performance. It's important to note that the fund's country weightings
are accumulated strictly as a result of my stock selection process. If
our research team uncovers more stocks that meet my investing criteria
in a particular country, the fund may be overweighted in that market.
Q. WHAT'S YOUR OUTLOOK?
A. I'm optimistic that Europe's economies can continue to improve.
Since the beginning of 1999, the European Central Bank has cut
interest rates and the euro has depreciated 9% against the dollar.
This could bode well for European exporters. Consumer spending is also
expected to be fairly strong, and stronger domestic growth could allow
more small company stocks to perform well. My outlook on Japan is a
bit more tentative. We've begun to see signs of gradual improvement,
but nothing to write home about yet. I'd like to see more concrete
evidence of a turnaround in Japan before I commit to that market.
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 AND DO NOT NECESSARILY REPRESENT THE VIEWS OF FIDELITY OR
ANY OTHER PERSON IN THE FIDELITY ORGANIZATION. ANY SUCH VIEWS ARE
SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS
AND FIDELITY DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE
VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS FOR A FIDELITY FUND ARE BASED ON NUMEROUS
FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON
BEHALF OF ANY FIDELITY FUND.
(checkmark)FUND FACTS
GOAL: seeks growth of capital
primarily through investments
in foreign securities
START DATE: April 23, 1990
SIZE: as of April 30, 1999,
more than $1.3 billion
MANAGER: Richard Mace,
since 1996; joined Fidelity
in 1987
RICK MACE ON HOW HIS
INVESTMENT STRATEGY
SHAPES THE BLUEPRINTS
FOR PORTFOLIO CONSTRUCTION:
"International investing entails
greater risks than domestic
investing. With that in mind, I try to
maximize the risk-adjusted return
of the fund. Generally, I'm looking
for stocks that have two or three
times more upside potential than
downside. To keep the risk level
in check, the fund typically has been
broadly diversified - with over 300
different holdings. The portfolio
hasn't been highly concentrated,
with the top 10 positions accounting
for only 16% of the fund's total
assets at the end of the period.
"Country and industry weightings
are also widely diversified; more
than two-thirds of the portfolio
have been constructed through
individual security selection
rather than through market or
industry selection factors. Most
of my investment ideas emanate
from our research analysts, located
in the U.S., London, Tokyo, and
Hong Kong. Largely through this
research, I was drawn to the
opportunities that cyclical stocks
seemed to offer. These stocks
performed well during the period,
and the fund benefited from its
positions in energy companies.
Again, I try not to make large bets
on any given industry, but I do try
to pick those investments that have
the best risk-return characteristics."
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C>
TOP FIVE STOCKS AS OF APRIL
30, 1999
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS IN
THESE STOCKS 6 MONTHS AGO
Elf Aquitaine (France, Oil & 2.1 1.7
Gas)
BP Amoco PLC (United Kingdom, 1.8 0.9
Oil & Gas)
Shell Transport & Trading Co. 1.7 0.8
PLC (Reg.) (United Kingdom,
Oil & Gas)
Telecom Italia Spa (Italy, 1.5 0.1
Telephone Services)
SmithKline Beecham PLC 1.4 1.4
(United Kingdom, Drugs &
Pharmaceuticals)
TOP FIVE MARKET SECTORS AS OF
APRIL 30, 1999
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS IN
THESE MARKET SECTORS 6
MONTHS AGO
FINANCE 23.9 20.9
UTILITIES 15.3 13.7
ENERGY 7.9 7.1
HEALTH 7.9 8.2
NONDURABLES 5.7 4.5
TOP FIVE COUNTRIES AS OF
APRIL 30, 1999
(EXCLUDING CASH EQUIVALENTS) % OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS IN
THESE COUNTRIES 6 MONTHS AGO
United Kingdom 21.1 16.8
Japan 16.9 14.8
France 13.0 15.0
Germany 8.2 9.0
Netherlands 7.3 7.6
</TABLE>
PERCENTAGES ARE ADJUSTED FOR THE EFFECT OF FUTURES CONTRACTS, IF
APPLICABLE.
ASSET ALLOCATION (% OF FUND'S
INVESTMENTS)
AS OF APRIL 30, 1999
Stocks, investment
companies and
equity futures 93.5%
Convertible Bonds 0.8%
Government
Obligations 0.1%
Short-term
investments 5.6%
Row: 1, Col: 1, Value: 93.5
Row: 1, Col: 2, Value: 0.8
Row: 1, Col: 3, Value: 0.1
Row: 1, Col: 4, Value: 5.6
AS OF OCTOBER 31, 1998
Stocks, investment
companies and
equity futures 92.8%
Convertible Bonds 0.0%
Government
Obligations 0.2%
Short-term
investments 7.0%
Row: 1, Col: 1, Value: 92.8
Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 0.2
Row: 1, Col: 4, Value: 7.0
INVESTMENTS APRIL 30, 1999 (UNAUDITED)
Showing Percentage of Total Value of Investment in Securities
<TABLE>
<CAPTION>
<S> <C> <C> <C>
COMMON STOCKS - 89.0%
SHARES VALUE (NOTE 1) (000S)
AUSTRALIA - 2.8%
AMP Ltd. 139,200 $ 1,625
Australia & New Zealand 572,466 4,532
Banking Group Ltd.
Brambles Industries Ltd. 31,550 927
Broken Hill Proprietary Co. 318,845 3,602
Ltd. (The)
Cable & Wireless Optus Ltd. 801,200 1,802
(a)
Coles Myer Ltd. 463,526 2,461
Commonwealth Bank of Australia 73,300 1,334
CSR Ltd. 154,400 413
David Jones Ltd. 447,200 451
Fosters Brewing Group Ltd. 340,800 994
Goodman Fielder Ltd. 701,400 677
National Australia Bank Ltd. 263,000 5,117
News Corp. Ltd. 415,174 3,477
News Corp. Ltd. sponsored ADR 27,300 834
(ltd. vtg.)
North Ltd. 293,700 622
Rio Tinto Ltd. 139,300 2,345
Smith (Howard) Ltd. 27,100 230
WMC Ltd. 1,589,054 6,863
Woodside Petroleum Ltd. 128,900 878
39,184
BELGIUM - 0.5%
Electrabel SA 8,100 2,677
Fortis B 81,000 2,723
Solvay & Compagnie SA 10,900 762
Tractebel 4,600 634
6,796
CANADA - 1.0%
BCE, Inc. 186,200 8,498
Celestica, Inc. (sub-vtg.) (a) 32,000 1,274
Cinar Films, Inc. Class B 86,600 1,808
(sub. vtg.) (a)
Newbridge Networks Corp. (a) 20,800 771
Noranda, Inc. 69,500 930
13,281
DENMARK - 0.6%
Den Danske Bank Group AS 19,100 2,203
International Service Systems 19,600 1,153
AS Class B
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
DENMARK - CONTINUED
Tele Danmark AS Class B 12,200 $ 1,260
Unidanmark AS Class A 44,600 3,068
7,684
FINLAND - 2.2%
Helsinki Telephone Corp. 18,300 773
Class E
Merita Ltd. Series A 88,800 531
Nokia AB 252,200 18,710
Sampo Insurance Co. Ltd. 61,000 1,925
Sonera Group PLC (e) 46,600 928
Stora Enso Oyj 40,600 475
Teito Corp. Class B 43,000 1,716
UPM-Kymmene Corp. 172,200 5,224
30,282
FRANCE - 12.7%
Alcatel Alsthom Compagnie 20,300 2,468
Generale d'Electricite SA
(RFD)
Atos SA (a) 22,400 1,921
AXA SA de CV 86,190 11,152
Banque Nationale de Paris 143,100 11,886
Canal Plus SA 5,600 1,561
Cap Gemini SA 21,978 3,367
Castorama Dubois 14,500 3,477
Investissements SA
Club Mediterranee SA (a) 14,000 1,297
Coflexip SA sponsored ADR 51,300 2,283
Compagnie de St. Gobain 25,200 4,336
Compagnie Financiere de 32,200 3,430
Paribas Class A (Reg.)
Elf Aquitaine 183,763 28,716
France Telecom SA 131,900 10,677
Groupe Danone 25,700 6,884
L'Oreal SA 3,100 1,989
Lafarge SA 18,654 1,817
Lagardere S.C.A. (Reg.) 42,600 1,691
LVMH Moet Hennessy Louis 3,900 1,048
Vuitton
Michelin SA (Compagnie 59,851 2,722
Generale des Etablissements)
Class B
Pechiney SA Class A 10,243 434
Pinault Printemps SA 10,700 1,779
Rhone-Poulenc SA Class A 94,405 4,449
Sanofi SA 41,645 6,539
Scor SA 72,400 3,618
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
FRANCE - CONTINUED
Seita 18,900 $ 1,141
Societe Generale, France 38,100 6,834
Class A
Suez Lyonnaise des Eaux 41,400 7,057
Television Francaise 1 SA 21,000 4,113
(T.F.1)
Total SA Class B 113,890 15,489
Union Assurances Federales SA 32,900 3,672
Valeo SA 27,300 2,312
Vivendi SA 61,500 14,397
174,556
GERMANY - 7.4%
Allianz AG (Reg.) 23,100 7,264
BASF AG 201,900 8,893
Bayer AG 132,400 5,530
Bayerische Hypo-und 54,800 3,525
Vereinsbank AG
Continental Gummi-Werke AG 22,300 560
DaimlerChrysler AG (Reg.) 161,547 15,862
Deutsche Bank AG 25,100 1,455
Deutsche Bank AG (RFD) 75,000 4,209
Deutsche Lufthansa AG (Reg.) 134,500 3,126
Deutsche Telekom AG 294,300 11,626
Fresenius Medical Care AG 19,800 1,055
Hoechst AG 24,800 1,178
Holzmann (Phillip) AG (a) 1,200 192
Mannesmann AG 114,820 15,026
Metro AG 29,700 2,107
Munich Reinsurance AG:
(Reg.) 9,900 1,959
(RFD) 9,900 1,971
RWE AG 63,500 2,891
Schering AG 18,200 2,100
Siemens AG 62,100 4,583
Veba AG 44,100 2,423
Viag AG 7,300 3,664
Volkswagen AG 14,200 999
102,198
HONG KONG - 0.5%
Cheung Kong Holdings Ltd. 170,000 1,546
China Telecom (Hong Kong) 110,000 252
Ltd. (a)
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
HONG KONG - CONTINUED
Dah Sing Financial Holdings 286,000 $ 902
Ltd.
Dao Heng Bank Group Ltd. 350,000 1,422
Johnson Electric Holdings 541,000 1,616
Ltd.
Sun Hung Kai Properties Ltd. 98,927 868
Wing Hang Bank Ltd. 128,000 391
6,997
IRELAND - 0.7%
Bank of Ireland, Inc. 358,910 7,187
CRH PLC 103,516 2,044
9,231
ITALY - 4.0%
Assicurazioni Generali Spa 295,400 11,519
Banca Commerciale Italiana Spa 488,100 4,038
Banca di Roma 1,932,050 3,173
Eni Spa sponsored ADR 671,600 4,424
Italgas Spa 213,400 961
Olivetti & Co. Spa 234,000 815
San Paolo-IMI Spa 307,000 4,625
Telecom Italia Mobile Spa 328,000 1,979
Telecom Italia Spa 1,914,828 20,333
Unicredito Italiano Spa 682,900 3,481
Unione Immobiliare Spa 590,100 337
55,685
JAPAN - 14.7%
Aiful Corp. (e) 40,800 3,339
Bank of Tokyo-Mitsubishi Ltd. 63,000 930
Banyu Pharmaceutical Co. Ltd. 200,000 3,686
Canon, Inc. 139,000 3,400
Dai Nippon Printing Co. Ltd. 47,000 745
Daiwa House Industry Co. Ltd. 117,000 1,397
Daiwa Securities Co. Ltd. 320,000 1,957
DDI Corp. 2,069 10,277
Fancl Corp. 7,800 1,111
Fuji Bank Ltd. 347,000 2,709
Fuji Photo Film Co. Ltd. 172,000 6,498
Furukawa Electric Co. Ltd. 951,000 4,158
Hitachi Ltd. 198,000 1,445
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
JAPAN - CONTINUED
Honda Motor Co. Ltd. 252,000 $ 11,135
Hoya Corp. 19,000 995
Ito-Yokado Co. Ltd. 110,000 6,754
Kao Corp. 150,000 3,807
Kirin Brewery Co. Ltd. 59,000 667
Kokusai Securities Co. Ltd. 19,000 237
Kyocera Corp. 51,000 3,029
Matsushita Electric 468,000 8,899
Industrial Co. Ltd.
Minolta Co. Ltd. 546,000 3,023
Mitsubishi Electric Corp. 1,282,000 4,478
Mitsubishi Estate Co. Ltd. 398,000 4,071
Mitsubishi Trust & Banking 207,000 2,271
Corp.
Mitsui Fudosan Co. Ltd. 177,000 1,631
NGK Insulators Ltd. 98,000 1,194
Nichicon Corp. 54,000 712
Nikko Securities Co. Ltd. 1,080,000 6,197
Nikon Corp. (a) 62,000 852
Nippon Telegraph & Telephone 277 3,016
Corp.
Nomura Securities Co. Ltd. 573,000 6,182
NTT Mobile Communication 170 9,968
Network, Inc. (a)
Omron Corp. 630,000 8,681
Orix Corp. 48,000 3,864
Paris Miki, Inc. 560 19
Ricoh Co. Ltd. 200,000 1,927
Rohm Co. Ltd. 8,000 965
Ryohin Keikaku Co. Ltd. 10,700 1,949
Sankyo Co. Ltd. 69,000 1,448
Secom Ltd. 37,000 3,614
Sekisui House Ltd. 172,000 1,926
Sharp Corp. 483,000 5,664
Shimano, Inc. 27,000 688
Shin-Etsu Chemical Co. Ltd. 87,000 2,769
Shohkoh Fund & Co. Ltd. 4,100 2,404
Softbank Corp. 13,400 1,784
Sony Corp. 38,000 3,515
Sumitomo Realty & Development 292,000 1,274
Co. Ltd.
Takeda Chemical Industries 396,000 17,216
Ltd.
Takefuji Corp. 45,500 3,773
Takefuji Corp. (e) 32,700 2,712
Terumo Corp. 190,000 4,138
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
JAPAN - CONTINUED
THK Co. Ltd. 203,600 $ 3,530
Tokyo Electron Ltd. 32,000 1,823
Toyota Motor Corp. 59,000 1,689
Yahoo Japan Corp. 4 1,387
Yamanouchi Pharmaceutical Co. 87,000 2,755
Ltd.
202,284
LUXEMBOURG - 0.1%
Stolt Comex Seaway SA 63,500 794
MALAYSIA - 0.1%
Malayan Banking BHD 34,000 90
Oriental Holdings BHD 686,800 1,455
1,545
MEXICO - 0.6%
Banacci SA de CV Class O (a) 753,000 1,906
Elektra SA de CV Unit 341,200 238
Empresas ICA Sociedad 134,900 885
Controladora SA de CV
sponsored ADR
Grupo Financiero Bancomer SA 14,267,000 4,906
de CV Series A
Tubos de Acero de Mexico SA 60,600 670
sponsored ADR
8,605
NETHERLANDS - 7.2%
ABN AMRO Holding NV 206,200 4,923
Aegon NV 44,300 4,257
Ahrend NV 31,000 604
Akzo Nobel NV 274,200 12,411
CSM NV 24,400 1,307
Equant NV (Reg.) (a) 52,500 4,686
Fortis Amev NV 199,400 7,115
Heineken NV 60,400 3,038
ING Groep NV 232,208 14,334
Koninklijke (Royal) Philips 123,500 10,657
Electronics NV
Koninklijke Ahold NV 140,053 5,212
Koninklijke KPN NV 134,600 5,629
Nutreco Holding NV 43,604 1,771
Royal Dutch Petroleum Co. 51,200 3,005
(Hague Registry)
Samas Groep NV 48,400 712
STMicroelectronics NV (a) 24,100 2,458
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
NETHERLANDS - CONTINUED
TNT Post Group NV 50,200 $ 1,355
Unilever NV 101,900 6,991
Vedior NV 121,735 2,745
Vendex NV CVA 58,300 1,454
Vnu NV 86,100 3,492
Wolters Kluwer NV 22,000 960
99,116
NEW ZEALAND - 0.1%
Lion Nathan Ltd. 314,900 793
PORTUGAL - 0.2%
Electricidade de Portugal SA 93,600 1,764
Portugal Telecom SA 11,000 459
2,223
SINGAPORE - 0.5%
Allgreen Properties Ltd. 170,000 103
Development Bank of Singapore 171,000 1,815
Ltd. (For. Reg.)
Oversea-Chinese Banking Corp. 227,000 2,128
(For. Reg.)
Overseas Union Bank Ltd. 352,000 1,806
United Overseas Bank Ltd. 199,000 1,537
(For. Reg.)
7,389
SPAIN - 2.8%
Banco Bilbao Vizcaya SA (Reg.) 159,200 2,387
Banco Santander Central 364,630 7,938
Hispano SA
Endesa SA 194,200 4,326
Iberdrola SA 208,000 2,918
Mapfre Vida SA 26,200 823
Repsol SA 46,800 763
Telefonica SA 390,600 18,342
Telefonica SA sponsored ADR 10 1
Union Electrica Fenosa SA 44,100 588
38,086
SWEDEN - 1.8%
ABB AB Series A 149,300 2,085
Electrolux AB 148,400 3,016
Ericsson (L.M.) Telefon AB 253,700 6,850
Class B
Nordbanken Holding AB 337,100 2,124
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
SWEDEN - CONTINUED
Skandia Foersaekrings AB 112,000 $ 2,170
Svenska Handelsbanken 90,500 3,399
Swedish Match Co. 1,001,900 3,299
Volvo AB Class B 86,800 2,300
25,243
SWITZERLAND - 6.2%
ABB AG 960 1,402
Credit Suisse Group (Reg.) 53,488 10,617
Gretag Imaging Holding AG 14,800 1,413
(Reg.) (a)
Holderbank Financiere Glarus 607 732
AG (Bearer)
Julius Baer Holding AG 1,627 5,301
Nestle SA (Reg.) 8,788 16,279
Novartis AG (Reg.) 12,170 17,832
Roche Holding AG 756 8,899
participation certificates
Swiss Reinsurance Co. (Reg.) 1,900 4,162
Swisscom AG 11,200 4,115
United Bank of Switzerland AG 39,839 13,541
Zurich Allied AG (Reg.) 1,000 645
84,938
TAIWAN - 0.4%
Taiwan Semiconductor 1,548,000 5,231
Manufacturing Co. Ltd.
UNITED KINGDOM - 21.1%
Abbey National PLC 163,600 3,700
Allied Domecq PLC 204,100 1,598
Allied Zurich PLC (a) 678,900 9,012
Amvescap PLC 296,800 3,156
Asda Group PLC 547,300 1,832
Ashtead Group PLC 240,500 881
Bank of Scotland 100,000 1,498
Bass PLC 93,300 1,468
BBA Group PLC 159,660 1,278
Boots Co. PLC 141,700 1,878
BP Amoco PLC 1,344,080 25,356
British Aerospace PLC 193,308 1,448
British American Tobacco PLC 341,300 2,867
British Energy PLC 151,300 1,287
British Telecommunications PLC 856,700 14,371
BTP PLC 91,100 613
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
UNITED KINGDOM - CONTINUED
BTR Siebe PLC 549,900 $ 2,810
Cadbury Schweppes PLC 212,700 2,842
Caradon PLC 3,224,260 8,207
CGU PLC 210,600 3,330
Cookson Group PLC 734,900 2,072
Courtaulds Textiles PLC 340,100 956
Diageo PLC 485,100 5,607
Dixons Group PLC 158,500 3,388
Gallaher Group PLC 112,900 651
General Electric Co. PLC 347,600 3,687
Glaxo Wellcome PLC 530,800 15,460
Hays PLC 98,800 1,100
HSBC Holdings PLC 28,503 1,074
HSBC Holdings PLC Ord. 319,313 12,186
Kingfisher PLC 455,400 6,823
Ladbroke Group PLC 243,500 1,188
Lloyds TSB Group PLC 1,059,800 17,082
Marks & Spencer PLC 58,800 402
Misys PLC 109,261 1,027
National Grid Group PLC 347,630 2,410
National Westminster Bank PLC 92,700 2,236
Orange PLC (a) 254,600 3,470
Pearson PLC 166,900 3,555
Peninsular & Oriental Steam 79,400 1,156
Navigation Co.
Prudential Corp. PLC 290,000 4,142
Rentokil Initial PLC 1,450,711 8,548
Reuters Group PLC 394,200 5,347
Rio Tinto PLC (Reg.) 126,700 2,216
RMC Industries, Inc. 55,500 840
Royal & Sun Alliance 296,924 2,564
Insurance Group PLC
Royal Bank of Scotland Group 160,100 3,781
PLC
Saatchi & Saatchi PLC 159,300 618
Sainsbury (J.) PLC 251,900 1,603
Schroders PLC 24,700 591
Scottish & Newcastle PLC 89,100 1,115
Scottish & Southern Energy PLC 222,100 2,088
Shell Transport & Trading Co. 3,041,500 23,033
PLC (Reg.)
SmithKline Beecham PLC 1,483,802 19,494
Somerfield PLC 107,900 603
South African Breweries PLC 219,300 1,835
(a)
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
UNITED KINGDOM - CONTINUED
Standard Chartered PLC 220,300 $ 3,989
Tarmac PLC 2,236,684 4,270
Tomkins PLC 244,300 1,040
Unilever PLC 1,063,700 9,523
Vodafone Group PLC 838,213 15,035
Wimpey George PLC 339,000 928
WPP Group PLC 201,900 1,786
289,951
UNITED STATES OF AMERICA - 0.8%
AirTouch Communications, Inc. 57,200 5,341
(a)
Baker Hughes, Inc. 44,500 1,329
Halliburton Co. 42,000 1,790
McDermott International, Inc. 13,100 380
Newmont Mining Corp. 29,200 703
Noble Drilling Corp. (a) 27,000 530
Smith International, Inc. 8,500 381
Weatherford International, 25,100 850
Inc. (a)
11,304
TOTAL COMMON STOCKS 1,223,396
(Cost $920,880)
PREFERRED STOCKS - 1.3%
CONVERTIBLE PREFERRED STOCKS
- - 0.3%
AUSTRALIA - 0.3%
WBK Trust $3.135 STRYPES 107,700 3,736
NONCONVERTIBLE PREFERRED
STOCKS - 1.0%
GERMANY - 0.6%
Dyckerhoff AG 4,300 1,197
SAP AG (Systeme Anwendungen 14,200 5,367
Produkte)
Volkswagen AG 23,500 1,002
Wella AG 1,900 1,509
9,075
PREFERRED STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
NONCONVERTIBLE PREFERRED
STOCKS - CONTINUED
ITALY - 0.4%
Banca Intesa Spa 11,900 $ 31
Telecom Italia Spa Risp 940,525 5,060
5,091
TOTAL NONCONVERTIBLE 14,166
PREFERRED STOCKS
TOTAL PREFERRED STOCKS 17,902
(Cost $12,639)
INVESTMENT COMPANIES - 1.0%
EMERGING MARKETS - 0.3%
Asia Tigers Fund, Inc. 89,200 775
Emerging Markets 56,800 497
Infrastructure Fund, Inc.
Emerging Markets 45,900 476
Telecommunication Fund, Inc.
Morgan Stanley Emerging 68,800 761
Markets Fund, Inc. (a)
Templeton Dragon Fund, Inc. 194,400 1,871
4,380
GERMANY - 0.2%
New Germany Fund, Inc. (The) 228,200 2,738
HONG KONG - 0.1%
Asia Pacific Fund, Inc. 131,600 1,184
MULTI-NATIONAL - 0.3%
European Warrant Fund, Inc. 74,500 1,145
Morgan Stanley Asia-Pacific 375,700 3,428
Fund, Inc.
4,573
TAIWAN - 0.1%
Taiwan Fund, Inc. 50,200 816
TOTAL INVESTMENT COMPANIES 13,691
(Cost $14,187)
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
CONVERTIBLE BONDS - 0.8%
MOODY'S RATINGS (B) PRINCIPAL AMOUNT (D) (000S) VALUE (NOTE 1) (000S)
FRANCE - 0.3%
Groupe Danone 3% 1/1/02 A1 EUR 1,083 $ 1,883
Suez Lyonnaise des Eaux 4% A+ EUR 793 1,721
1/1/06
3,604
NETHERLANDS - 0.1%
Koninklijke Ahold NV 3% Baa1 NLG 2,970 1,897
9/30/03
UNITED STATES OF AMERICA - 0.4%
Nestle Holdings, Inc. 3% - 3,430 4,185
6/17/02
Roche Holdings, Inc. liquid - 1,980 1,218
yield option note 0% 4/20/10
(e)
5,403
TOTAL CONVERTIBLE BONDS 10,904
(Cost $11,861)
GOVERNMENT OBLIGATIONS - 0.4%
ITALY - 0.1%
Italian Republic 5% 6/28/01 Aa3 1,190 2,210
UNITED STATES OF AMERICA - 0.3%
U.S. Treasury Bills, yield at - 4,100 4,070
date of purchase 4.34%
7/1/99 (f)
TOTAL GOVERNMENT OBLIGATIONS 6,280
(Cost $6,027)
CASH EQUIVALENTS - 7.5%
SHARES
Taxable Central Cash Fund (c) 102,515,517 102,516
(Cost $102,516)
TOTAL INVESTMENT IN $ 1,374,689
SECURITIES - 100%
(Cost $1,068,110)
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FUTURES CONTRACTS
EXPIRATION DATE UNDERLYING FACE AMOUNT (000S) UNREALIZED GAIN/(LOSS) (000S)
PURCHASED
341 Nikkei 225 Index Jun. 1999 $ 28,422 $ 2,085
Contracts (Japan)
21 Topix Index Contracts Jun. 1999 2,297 97
(Japan)
$ 30,719 $ 2,182
The face value of futures purchased as a percentage of investment in
securities - 2.2%
</TABLE>
SECURITY TYPE ABBREVIATIONS
STRYPES - Structured Yield Product
Exchangeable for Common Stock
CURRENCY ABBREVIATIONS
EUR - European Monetary Unit
NLG - Dutch guilder
LEGEND
(a) Non-income producing
(b) Standard & Poor's credit ratings are used in the absence of a
rating by Moody's Investors Service, Inc.
(c) At period end, the seven-day yield on the Taxable Central Cash
Fund was 4.79%. The yield refers to the income earned by investing in
the fund over the seven-day period, expressed as an annual percentage.
(d) Principal amount is stated in United States dollars unless
otherwise noted.
(e) 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 $8,197,000 or 0.6% of net assets.
(f) 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 $3,275,000.
INCOME TAX INFORMATION
At April 30, 1999, the aggregate cost
of investment securities for income tax purposes was $1,069,622,000.
Net unrealized appreciation aggregated $305,067,000, of which
$338,734,000 related to appreciated investment securities and
$33,667,000 related to depreciated investment securities.
MARKET SECTOR
DIVERSIFICATION (UNAUDITED)
As a Percentage of Total Value of Investment in Securities
AEROSPACE & DEFENSE 0.1%
BASIC INDUSTRIES 3.8
CASH EQUIVALENTS 7.5
CONSTRUCTION & REAL ESTATE 3.1
DURABLES 4.8
ENERGY 7.9
FINANCE 23.9
GOVERNMENT OBLIGATIONS 0.4
HEALTH 7.9
HOLDING COMPANIES 0.4
INDUSTRIAL MACHINERY & 3.7
EQUIPMENT
INVESTMENT COMPANIES 1.0
MEDIA & LEISURE 1.9
NONDURABLES 5.7
PRECIOUS METALS 0.6
RETAIL & WHOLESALE 3.1
SERVICES 2.8
TECHNOLOGY 5.6
TRANSPORTATION 0.5
UTILITIES 15.3
100.0%
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
AMOUNTS IN THOUSANDS APRIL
30, 1999 (UNAUDITED)
ASSETS
Investment in securities, at $ 1,374,689
value (cost $1,068,110) -
See accompanying schedule
Foreign currency held at 2,987
value (cost $2,957)
Receivable for investments 5,552
sold
Receivable for fund shares 2,265
sold
Dividends receivable 5,222
Interest receivable 520
Other receivables 22
TOTAL ASSETS 1,391,257
LIABILITIES
Payable for investments $ 16,531
purchased
Payable for fund shares 9,785
redeemed
Distributions payable 18
Accrued management fee 1,035
Distribution fees payable 571
Payable for daily variation 432
on futures contracts
Other payables and accrued 600
expenses
TOTAL LIABILITIES 28,972
NET ASSETS $ 1,362,285
Net Assets consist of:
Paid in capital $ 1,006,225
Distributions in excess of (4,946)
net investment income
Accumulated undistributed net 52,020
realized gain (loss) on
investments and foreign
currency transactions
Net unrealized appreciation 308,986
(depreciation) on
investments and assets and
liabilities in foreign
currencies
NET ASSETS $ 1,362,285
STATEMENT OF ASSETS AND LIABILITIES - CONTINUED
AMOUNTS IN THOUSANDS (EXCEPT
PER-SHARE AMOUNTS) APRIL 30,
1999 (UNAUDITED)
CALCULATION OF MAXIMUM $18.62
OFFERING PRICE CLASS A: NET
ASSET VALUE and redemption
price per share ($15,576
(divided by) 836.50 shares)
Maximum offering price per $19.76
share (100/94.25 of $18.62)
CLASS T: NET ASSET VALUE and $18.86
redemption price per share
($1,173,583 (divided by)
62,234 shares)
Maximum offering price per $19.54
share (100/96.50 of $18.86)
CLASS B: NET ASSET VALUE and $18.38
offering price per share
($70,604 (divided by) 3,841
shares) A
CLASS C: NET ASSET VALUE and $18.68
offering price per share
($20,313 (divided by)
1,087.50 shares) A
INSTITUTIONAL CLASS: NET $18.61
ASSET VALUE, offering price
and redemption price per
share ($82,209 (divided by)
4,417 shares)
A REDEMPTION PRICE PER SHARE IS EQUAL TO NET ASSET VALUE LESS ANY
APPLICABLE CONTINGENT DEFERRED SALES CHARGE.
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS SIX
MONTHS ENDED APRIL 30, 1999
(UNAUDITED)
INVESTMENT INCOME $ 9,337
Dividends
Interest 2,789
12,126
Less foreign taxes withheld (971)
TOTAL INCOME 11,155
EXPENSES
Management fee Basic fee $ 4,827
Performance adjustment 1,118
Transfer agent fees 1,312
Distribution fees 3,273
Accounting fees and expenses 324
Non-interested trustees' 2
compensation
Custodian fees and expenses 300
Registration fees 52
Audit 24
Legal 3
Miscellaneous 5
Total expenses before 11,240
reductions
Expense reductions (244) 10,996
NET INVESTMENT INCOME 159
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities 53,865
Foreign currency transactions 520
Futures contracts 4,225 58,610
Change in net unrealized
appreciation (depreciation)
on:
Investment securities 134,281
Assets and liabilities in 11
foreign currencies
Futures contracts 1,343 135,635
NET GAIN (LOSS) 194,245
NET INCREASE (DECREASE) IN $ 194,404
NET ASSETS RESULTING FROM
OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
AMOUNTS IN THOUSANDS SIX MONTHS ENDED APRIL 30, YEAR ENDED OCTOBER 31, 1998
1999 (UNAUDITED)
INCREASE (DECREASE) IN NET
ASSETS
Operations Net investment $ 159 $ 4,291
income
Net realized gain (loss) 58,610 17,409
Change in net unrealized 135,635 25,052
appreciation (depreciation)
NET INCREASE (DECREASE) IN 194,404 46,752
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (160) (11,326)
From net investment income
In excess of net investment (3,285) -
income
From net realized gain (10,438) (66,913)
TOTAL DISTRIBUTIONS (13,883) (78,239)
Share transactions - net (66,113) 85,339
increase (decrease)
TOTAL INCREASE (DECREASE) 114,408 53,852
IN NET ASSETS
NET ASSETS
Beginning of period 1,247,877 1,194,025
End of period (including $ 1,362,285 $ 1,247,877
under (over) distribution of
net investment income of
$(4,946) and $2,133,
respectively)
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS - CLASS A
SIX MONTHS ENDED APRIL 30, 1999 YEARS ENDED OCTOBER 31,
(UNAUDITED) 1998 1997 1996 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 16.32 $ 16.89 $ 15.29 $ 14.98
period
Income from Investment
Operations
Net investment income D .02 .09 .09 .04
Net realized and unrealized 2.53 .51 2.39 .27
gain (loss)
Total from investment 2.55 .60 2.48 .31
operations
Less Distributions
From net investment income (.01) (.21) (.25) -
In excess of net investment (.10) - - -
income
From net realized gain (.14) (.96) (.63) -
Total distributions (.25) (1.17) (.88) -
Net asset value, end of period $ 18.62 $ 16.32 $ 16.89 $ 15.29
TOTAL RETURN B, C 15.80% 3.73% 16.95% 2.07%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in $ 16 $ 12 $ 5 $ 1
millions)
Ratio of expenses to average 1.55% A 1.55% F 1.90% F 1.16% A, F
net assets
Ratio of expenses to average 1.51% A, G 1.54% G 1.89% G 1.16% A
net assets after expense
reductions
Ratio of net investment .25% A .51% .53% 1.74% A
income to average net assets
Portfolio turnover 100% A 74% 70% 82%
</TABLE>
A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD SEPTEMBER 3, 1996 (COMMENCEMENT OF SALE OF CLASS A
SHARES) TO OCTOBER 31, 1996.
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS CLASS - T
SIX MONTHS ENDED APRIL 30, 1999 YEARS ENDED OCTOBER 31,
(UNAUDITED) 1998 1997 1996 1995 1994
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 16.48 $ 17.02 $ 15.30 $ 13.92 $ 14.06 $ 12.93
period
Income from Investment
Operations
Net investment income .00 D .06 D .13 D .19 D, E .07 .01
Net realized and unrealized 2.56 .52 2.38 1.29 (.11) 1.14
gain (loss)
Total from investment 2.56 .58 2.51 1.48 (.04) 1.15
operations
Less Distributions
From net investment income - (.16) (.16) (.09) - -
In excess of net investment (.04) - - - - -
income
From net realized gain (.14) (.96) (.63) (.01) (.02) (.02)
In excess of net realized gain - - - - (.08) -
Total distributions (.18) (1.12) (.79) (.10) (.10) (.02)
Net asset value, end of period $ 18.86 $ 16.48 $ 17.02 $ 15.30 $ 13.92 $ 14.06
TOTAL RETURN B, C 15.66% 3.57% 17.07% 10.69% (.25)% 8.91%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in $ 1,174 $ 1,086 $ 1,111 $ 995 $ 742 $ 654
millions)
Ratio of expenses to average 1.73% A 1.74% 1.66% 1.61% 1.90% 2.12%
net assets
Ratio of expenses to average 1.70% A, F 1.72% F 1.65% F 1.60% F 1.90% 2.12%
net assets after expense
reductions
Ratio of net investment .02% A .35% .80% 1.30% 1.01% .05%
income to average net assets
Portfolio turnover 100% A 74% 70% 82% 47% 34%
</TABLE>
A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN
LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
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.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS - CLASS B
SIX MONTHS ENDED APRIL 30, 1999 YEARS ENDED OCTOBER 31,
(UNAUDITED) 1998 1997 1996 1995 F
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 16.08 $ 16.69 $ 15.06 $ 13.92 $ 13.89
period
Income from Investment
Operations
Net investment income (loss) (.05) D (.03) D .02 D .08 D, E .01
Net realized and unrealized 2.49 .51 2.36 1.26 .02
gain (loss)
Total from investment 2.44 .48 2.38 1.34 .03
operations
Less Distributions
From net investment income - (.13) (.12) (.19) -
From net realized gain (.14) (.96) (.63) (.01) -
Total distributions (.14) (1.09) (.75) (.20) -
Net asset value, end of $ 18.38 $ 16.08 $ 16.69 $ 15.06 $ 13.92
period
TOTAL RETURN B, C 15.27% 3.00% 16.41% 9.73% .22%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 71 $ 58 $ 40 $ 19 $ 3
(in millions)
Ratio of expenses to average 2.30% A, G 2.30% G 2.30% 2.37% 1.97% A, G
net assets
Ratio of expenses to average 2.26% A, H 2.29% H 2.29% H 2.37% 1.97% A
net assets after expense
reductions
Ratio of net investment (.53)% A (.19)% .15% .53% .94% A
income (loss) to average
net assets
Portfolio turnover 100% A 74% 70% 82% 47%
</TABLE>
A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
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.
H FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.
<TABLE>
<CAPTION>
<S> <C> <C>
FINANCIAL HIGHLIGHTS - CLASS C
SIX MONTHS ENDED APRIL 30, 1999 YEAR ENDED OCTOBER 31,
(UNAUDITED) 1998 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 16.37 $ 17.23
period
Income from Investment
Operations
Net investment income (loss) D (.04) (.03)
Net realized and unrealized 2.55 .29
gain (loss)
Total from investment 2.51 .26
operations
Less Distributions
From net investment income - (.16)
In excess of net investment (.06) -
income
From net realized gain (.14) (.96)
Total distributions (.20) (1.12)
Net asset value, end of period $ 18.68 $ 16.37
TOTAL RETURN B, C 15.47% 2.84%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in $ 20 $ 15
millions)
Ratio of expenses to average 2.24% A, F 2.30% A, F
net assets
Ratio of expenses to average 2.21% A, G 2.30% A
net assets after expense
reductions
Ratio of net investment (.43)% A (.20)% A
income (loss) to average net
assets
Portfolio turnover 100% A 74%
</TABLE>
A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
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 FOR THE PERIOD NOVEMBER 3, 1997 (COMMENCEMENT OF SALE OF CLASS C
SHARES) TO OCTOBER 31, 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.
G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS
SIX MONTHS ENDED APRIL 30, 1999 YEARS ENDED OCTOBER 31,
(UNAUDITED) 1998 1997 1996 1995 F
SELECTED PER-SHARE DATA
Net asset value, beginning $ 16.36 $ 16.92 $ 15.20 $ 13.97 $ 13.89
of period
Income from Investment
Operations
Net investment income .05 D .13 D .22 D .21 D, E .05
Net realized and unrealized 2.50 .53 2.36 1.24 .03
gain (loss)
Total from investment 2.55 .66 2.58 1.45 .08
operations
Less Distributions
From net investment income (.01) (.26) (.23) (.21) -
In excess of net investment (.15) - - - -
income
From net realized gain (.14) (.96) (.63) (.01) -
Total distributions (.30) (1.22) (.86) (.22) -
Net asset value, end of $ 18.61 $ 16.36 $ 16.92 $ 15.20 $ 13.97
period
TOTAL RETURN B, C 15.80% 4.11% 17.73% 10.51% .58%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 82 $ 77 $ 38 $ 16 $ 1
(in millions)
Ratio of expenses to average 1.18% A 1.26% 1.17% 1.44% .97% A, G
net assets
Ratio of expenses to average 1.14% A, H 1.24% H 1.16% H 1.43% H .97% A
net assets after expense
reductions
Ratio of net investment .58% A .76% 1.31% 1.46% 1.94% A
income to average net assets
Portfolio turnover 100% A 74% 70% 82% 47%
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
D 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.
H FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.
NOTES TO FINANCIAL STATEMENTS
For the period ended April 30, 1999 (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
matters that affect that class. Class B shares will automatically
convert to Class A shares after a holding period of seven years from
the initial date of purchase. 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, 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
are 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.
FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Purchases
and sales of securities, income receipts and expense payments are
translated into U.S. dollars at the prevailing exchange rate on the
respective dates of the transactions.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
FOREIGN CURRENCY TRANSLATION - CONTINUED
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
and settlement date 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.
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, which may result in
distribution reclassifications, are primarily due to differing
treatments for futures transactions, foreign currency transactions,
passive foreign investment companies (PFIC) 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
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
and accumulated undistributed net realized gain (loss) on investments
and foreign currency transactions may include temporary book and tax
basis differences that will reverse in a subsequent period. Any
taxable income or gain remaining at fiscal year end is distributed in
the following year.
SECURITY TRANSACTIONS. Security transactions are accounted for as of
trade date. Gains and losses on securities sold are determined on the
basis of identified cost.
2. OPERATING POLICIES.
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 Fidelity Management & Research Company
(FMR), may transfer uninvested cash balances into one or more joint
trading accounts. These balances are invested in one or more
repurchase agreements 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., 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.
2. OPERATING POLICIES - CONTINUED
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 $596,381,000 and $596,561,000, respectively.
The market value of futures contracts opened and closed during the
period amounted to $89,558,000 and $130,600,000, 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
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
MANAGEMENT FEE - CONTINUED
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 (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. A portion of this fee may be reallowed to securities
dealers, banks and other financial institutions for the distribution
of each class of shares and providing shareholder support services.
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.
For the period, each class paid FDC the following amounts, a portion
of which was retained by FDC:
PAID TO FDC RETAINED BY FDC
CLASS A $ 18,000 $ -
CLASS T 2,846,000 59,000
CLASS B 321,000 242,000
CLASS C 88,000 66,000
$ 3,273,000 $ 367,000
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
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. A
portion of the sales charges paid to FDC are paid to securities
dealers, banks and other financial institutions.
For the period, sales charge amounts paid to and retained by FDC were
as follows:
PAID TO FDC RETAINED BY FDC
CLASS A $ 50,000 $ 19,000
CLASS T 227,000 71,000
CLASS B 122,000 122,000 *
CLASS C 6,000 6,000 *
$ 405,000 $ 218,000
* WHEN CLASS B AND CLASS C SHARES ARE INITIALLY SOLD, FDC PAYS
COMMISSIONS FROM ITS OWN RESOURCES TO SECURITIES DEALERS,
BANKS, AND OTHER FINANCIAL INSTITUTIONS 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.
FIIOC receives account fees and asset-based fees that vary according
to the account size and type of account of the shareholders of the
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT FEES - CONTINUED
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 $ 19,000 .27 *
CLASS T 1,124,000 .20 *
CLASS B 89,000 .28 *
CLASS C 20,000 .23 *
INSTITUTIONAL CLASS 60,000 .15 *
$ 1,312,000
* ANNUALIZED.
ACCOUNTING FEES. Fidelity Service Company, Inc., an affiliate of FMR,
maintains the fund's accounting records. The fee is based on the level
of average net assets for the month plus out-of-pocket expenses.
BROKERAGE COMMISSIONS. The fund placed a portion of its portfolio
transactions with brokerage firms which are affiliates of FMR. The
commissions paid to these affiliated firms were $1,900 for the period.
5. EXPENSE REDUCTIONS.
Effective January 1, 1999, 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 EXPENSE LIMITATIONS REIMBURSEMENT
CLASS A 1.55% $ -
CLASS T 1.80% -
CLASS B 2.30% 6,000
CLASS C 2.30% 1,000
INSTITUTIONAL CLASS 1.30% -
$ 7,000
FMR has also 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 $237,000 under this arrangement.
6. DISTRIBUTIONS TO SHAREHOLDERS.
Distributions to shareholders of each class were as follows:
AMOUNTS IN THOUSANDS SIX MONTHS ENDED YEAR ENDED
APRIL 30, OCTOBER 31,
1999 1998 A
FROM NET INVESTMENT INCOME
Class A $ 4 $ 68
Class T 120 10,334
Class B - 321
Class C 2 3
Institutional Class 34 600
Total $ 160 $ 11,326
IN EXCESS OF NET INVESTMENT
INCOME
Class A $ 74 $ -
Class T 2,475 -
Class C 47 -
Institutional Class 689 -
Total $ 3,285 $ -
FROM NET REALIZED GAIN
Class A $ 99 $ 310
Class T 9,084 62,023
Class B 507 2,341
Class C 116 27
Institutional Class 632 2,212
Total $ 10,438 $ 66,913
$ 13,883 $ 78,239
A DISTRIBUTIONS FOR CLASS C ARE FOR THE PERIOD NOVEMBER 3, 1997
(COMMENCEMENT OF SALE OF SHARES) TO OCTOBER 31, 1998.
7. SHARE TRANSACTIONS.
Transactions for each class of shares for the periods are as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
SHARES DOLLARS
AMOUNTS IN THOUSANDS SIX MONTHS ENDED APRIL 30, YEAR ENDED OCTOBER 31, SIX MONTHS ENDED APRIL 30,
1999 1998 A 1999
CLASS A Shares sold 2,135 $ 31,348
1,808
Reinvestment of distributions 11 23 173
Shares redeemed (1,746) (1,691) (30,605)
Net increase (decrease) 73 467 $ 916
CLASS T Shares sold 38,149 47,385 $ 676,505
Reinvestment of distributions 648 4,208 10,981
Shares redeemed (42,455) (50,964) (756,204)
Net increase (decrease) (3,658) 629 $ (68,718)
CLASS B Shares sold 1,031 2,567 $ 17,755
Reinvestment of distributions 27 153 454
Shares redeemed (848) (1,476) (14,663)
Net increase (decrease) 210 1,244 $ 3,546
CLASS C Shares sold 4,073 1,843 $ 71,621
Reinvestment of distributions 9 1 143
Shares redeemed (3,889) (949) (68,974)
Net increase (decrease) 193 895 $ 2,790
INSTITUTIONAL CLASS Shares 1,375 3,622 $ 24,104
sold
Reinvestment of distributions 36 146 601
Shares redeemed (1,677) (1,346) (29,352)
Net increase (decrease) (266) 2,422 $ (4,647)
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
DOLLARS
AMOUNTS IN THOUSANDS YEAR ENDED OCTOBER 31,
1998 A
CLASS A Shares sold $ 35,934
Reinvestment of distributions 371
Shares redeemed (28,405)
Net increase (decrease) $ 7,900
CLASS T Shares sold $ 815,252
Reinvestment of distributions 67,693
Shares redeemed (879,988)
Net increase (decrease) $ 2,957
CLASS B Shares sold $ 43,550
Reinvestment of distributions 2,417
Shares redeemed (24,505)
Net increase (decrease) $ 21,462
CLASS C Shares sold $ 30,151
Reinvestment of distributions 16
Shares redeemed (14,817)
Net increase (decrease) $ 15,350
INSTITUTIONAL CLASS Shares $ 58,034
sold
Reinvestment of distributions 2,327
Shares redeemed (22,691)
Net increase (decrease) $ 37,670
</TABLE>
A SHARE TRANSACTIONS FOR CLASS C ARE FOR THE PERIOD NOVEMBER 3, 1997
(COMMENCEMENT OF SALE OF SHARES) TO OCTOBER 31, 1998.
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 Investments Japan Limited,
Tokyo, Japan
Fidelity International Investment Advisors, Pembroke, Bermuda
Fidelity International Investment Advisors (U.K.) Limited, London,
England
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Richard A. Spillane, Jr., Vice President
Richard R. Mace, Jr., Vice President
Eric D. Roiter, Secretary
Richard A. Silver, Treasurer
Matthew N. Karstetter, Deputy Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
*INDEPENDENT TRUSTEES
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
Abigail P. Johnson
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
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 Latin America Fund
Fidelity Advisor Japan Fund
Fidelity Advisor Europe Capital Appreciation Fund
Fidelity Advisor International
Capital Appreciation Fund
Fidelity Advisor Overseas Fund
Fidelity Advisor Diversified International Fund
Fidelity Advisor Global Equity Fund
Fidelity Advisor TechnoQuantSM
Growth Fund
Fidelity Advisor Small Cap Fund
Fidelity Advisor Strategic
Opportunities Fund
Fidelity Advisor Mid Cap Fund
Fidelity Advisor Retirement Growth Fund
Fidelity Advisor Equity Growth Fund
Fidelity Advisor Large Cap Fund
Fidelity Advisor Dividend Growth Fund
Fidelity Advisor Growth
Opportunities Fund
OS-SANN-0699 77850
1.703565.101
GROWTH AND INCOME FUNDS
Fidelity Advisor Growth & Income Fund
Fidelity Advisor Equity Income Fund
Fidelity Advisor Asset Allocation 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
(2_FIDELITY_LOGOS)(registered trademark)
(2_FIDELITY_LOGOS)(registered trademark)
FIDELITY ADVISOR
OVERSEAS
FUND - INSTITUTIONAL CLASS
SEMIANNUAL REPORT
APRIL 30, 1999
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 9 A summary of major shifts in
the fund's investments over
the past six months.
INVESTMENTS 10 A complete list of the fund's
investments with their
market values.
FINANCIAL STATEMENTS 24 Statements of assets and
liabilities, operations, and
changes in net assets, as
well as financial highlights.
NOTES 33 Notes to the financial
statements.
Third party marks appearing herein are the property of their
respective owners.
All other marks appearing herein are registered or unregistered
trademarks or service marks of FMR Corp. or an affiliated company.
This report is printed on recycled paper using soy-based inks.
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:
With 13 record-high closings, the Dow Jones Industrial Average surged
nearly 1,000 points in April. What's particularly noteworthy about
this performance is that, in some cases, gains were fueled by a
rotation out of growth stocks and into issues more sensitive to
economic swings. The strength in blue chips, combined with heavy
global, corporate and agency bond issuance, contributed to the
downward pressure on government security prices.
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 an investment in a money market fund is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. Although money market funds seek to preserve the
value of your investment at $1.00 per share, it is possible to lose
money by investing in these types of funds.
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. Of course, you should
consider your financial ability to continue your purchases through
periods of low price levels before undertaking such a strategy.
Remember to contact your investment professional if you need help with
your investments.
Best regards,
Edward C. Johnson 3d
FIDELITY ADVISOR OVERSEAS FUND - INSTITUTIONAL CLASS
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 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 shares' prior 0.65% 12b-1 fee. If Fidelity had not reimbursed
certain class expenses, the past five years and life of fund 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.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CUMULATIVE TOTAL RETURNS
PERIODS ENDED APRIL 30, 1999 PAST 6 MONTHS PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
FIDELITY ADV OVERSEAS - INST CL 15.80% 2.57% 56.80% 128.74%
MSCI EAFE(registered trademark) 15.40% 9.74% 52.59% 104.01%
International Funds Average 15.11% 3.24% 50.24% n/a
</TABLE>
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 - a market capitalization-weighted index that is designed to
represent the performance of developed stock markets outside the
United States and Canada. As of April 30, 1999, the index included
over 1,022 equity securities of companies domiciled in 21 countries.
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 Inc. The past six months average represents a peer
group of 597 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, 1999 PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
FIDELITY ADV OVERSEAS - INST CL 2.57% 9.41% 9.60%
MSCI EAFE 9.74% 8.82% 8.22%
International Funds Average 3.24% 8.29% 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 (Net MA tax)
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
1998/05/31 22276.95 18503.19
1998/06/30 22047.54 18646.59
1998/07/31 22216.58 18839.02
1998/08/31 18183.79 16508.44
1998/09/30 18135.49 16005.92
1998/10/31 19753.44 17678.06
1998/11/30 20864.27 18587.25
1998/12/31 21312.82 19324.04
1999/01/31 21620.10 19270.51
1999/02/28 21042.42 18814.77
1999/03/31 21927.38 19603.86
1999/04/30 22873.80 20401.34
IMATRL PRASUN SHR__CHT 19990430 19990514 112108 R00000000000112
$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, 1999, the value of the investment would have grown to $22,874 - a
128.74% 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 $20,401 - a 104.01%
increase.
(checkmark)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.
FUND TALK: THE MANAGER'S OVERVIEW
MARKET RECAP
In recent months, the black cloud
hanging over many global
economies last fall began to give
way to brighter forecasts. Although
it is too soon to tell whether rallies in
Latin America, Japan and Asia
are sustainable, they did represent
an important turning point. During
the six-month period ending April 30,
1999, the Morgan Stanley Capital
International EAFE Index - which
measures the performance of stock
markets in Europe, Australasia and
the Far East - returned 15.40%.
While the global economy still has
many obstacles to overcome,
government initiatives to aid banks,
corporate restructuring in Japan
and stable currencies in Asia and
emerging markets improved investor
sentiment. Turning to Europe, the
indexes posted mixed results as
volatility prevailed. Toward the end
of 1998, European stocks surged in
response to a strong U.S. market,
increased merger and acquisition
activity and enthusiasm about the
European Union's single currency
- - the euro. Many European markets
stalled in 1999, however, as the
outlook for economic growth and
corporate profits deteriorated. The
U.K. stock market was among the
strongest performers in Europe as
the economy improved amid a
favorable environment of declining
interest rates and encouraging
earnings growth. Elsewhere, positive
economic developments in the form
of lower-than-expected inflation
reports and signs that commodity
prices had bottomed fueled optimism
in Brazil and Mexico.
(photograph of Richard Mace)
An interview with Richard Mace, Portfolio Manager of Fidelity Advisor
Overseas Fund
Q. HOW DID THE FUND PERFORM, RICK?
A. For the six months that ended April 30, 1999, the fund's
Institutional Class shares returned 15.80%. The Morgan Stanley Capital
International Europe, Australasia, Far East (EAFE) Index returned
15.40% during that time. The international funds average, as tracked
by Lipper Inc., had a six-month return of 15.11% as of April 30, 1999.
For the 12 months that ended April 30, 1999, the fund's Institutional
Class shares returned 2.57%. The EAFE index and Lipper average
returned 9.74% and 3.24%, respectively, during the same time.
Q. WHAT FACTORS CONTRIBUTED POSITIVELY TO THE FUND'S PERFORMANCE
DURING THE PAST SIX-MONTH PERIOD?
A. Good stock selection in several industries - including
telecommunications - helped performance. The telecommunications
industry has undergone a major transformation, sparked primarily by
worldwide privatization, deregulation and technological advances. This
spawned a rash of mergers, acquisitions and alliances among industry
participants seeking to expand their global market shares and defend
their positions at home. The fund's stakes in companies such as
Japan's NTT Mobile and DDI Corp., and the United Kingdom's British
Telecommunications and Vodafone Group performed very well. The fund's
energy-related investments - including Elf Aquitane, BP Amoco and
Shell - also performed well as the price of oil perked up again.
Q. WHAT FACTORS HINDERED THE FUND'S PERFORMANCE?
A. A major underweighting - relative to the EAFE index - in Japanese
banks detracted from performance. Bank shares in general soared
following the Japanese government's unveiling of a plan to inject
capital into the country's troubled banking system. I could find no
great benefit to the shareholders of these banks, so I decided to
avoid them. In addition, the fund's food and household products
positions declined during the period, namely Swiss-based Nestle and
France's Group Danone. These companies were hit particularly hard as
investors became concerned that economic weakness would bite into
their sales.
Q. WHICH OTHER INVESTMENTS STOOD OUT AMONG THE FUND'S TOP
CONTRIBUTORS?
A. The fund's long-standing position in Finnish telecom company Nokia
generated good results. When I looked at the stock a year and a half
ago, it was trading at a price-to-earnings (P/E) ratio of 20 and the
company was growing its earnings at an annual clip of 30% to 40%. On
that basis, when I compared Nokia to its counterpart growth stocks in
the U.S., the stock should have been trading at a higher P/E multiple.
Thus, I felt the valuation was attractive.
Q. THE FUND'S COMBINED INVESTMENTS IN JAPAN, THE U.K. AND FRANCE
TOTALED 51% AT THE CLOSE OF THE PERIOD. HOW DID YOU POSITION THE FUND
WITHIN THESE MARKETS AND HOW DID EACH PERFORM?
A. The fund was underweighted - at 17% and 21%, respectively - in both
Japan and the U.K. relative to the EAFE index during the period. At
13%, the fund was overweighted in France. The underweighting in Japan
hurt somewhat, as the Japanese market turned the corner a bit and beat
the EAFE's return over the past six months. The fund's U.K. positions,
while moderately underweighted relative to the index, outperformed the
index. The fund's investments in France performed well for the most
part, but the weak performance of the euro muted much of that
performance. It's important to note that the fund's country weightings
are accumulated strictly as a result of my stock selection process. If
our research team uncovers more stocks that meet my investing criteria
in a particular country, the fund may be overweighted in that market.
Q. WHAT'S YOUR OUTLOOK?
A. I'm optimistic that Europe's economies can continue to improve.
Since the beginning of 1999, the European Central Bank has cut
interest rates and the euro has depreciated 9% against the dollar.
This could bode well for European exporters. Consumer spending is also
expected to be fairly strong, and stronger domestic growth could allow
more small company stocks to perform well. My outlook on Japan is a
bit more tentative. We've begun to see signs of gradual improvement,
but nothing to write home about yet. I'd like to see more concrete
evidence of a turnaround in Japan before I commit to that market.
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 AND DO NOT NECESSARILY REPRESENT THE VIEWS OF FIDELITY OR
ANY OTHER PERSON IN THE FIDELITY ORGANIZATION. ANY SUCH VIEWS ARE
SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS
AND FIDELITY DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE
VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS FOR A FIDELITY FUND ARE BASED ON NUMEROUS
FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON
BEHALF OF ANY FIDELITY FUND.
(checkmark)FUND FACTS
GOAL: seeks growth of capital
primarily through investments
in foreign securities
START DATE: April 23, 1990
SIZE: as of April 30, 1999,
more than $1.3 billion
MANAGER: Richard Mace,
since 1996; joined Fidelity
in 1987
RICK MACE ON HOW HIS
INVESTMENT STRATEGY
SHAPES THE BLUEPRINTS
FOR PORTFOLIO CONSTRUCTION:
"International investing entails
greater risks than domestic
investing. With that in mind, I try to
maximize the risk-adjusted return
of the fund. Generally, I'm looking
for stocks that have two or three
times more upside potential than
downside. To keep the risk level
in check, the fund typically has been
broadly diversified - with over 300
different holdings. The portfolio
hasn't been highly concentrated,
with the top 10 positions accounting
for only 16% of the fund's total
assets at the end of the period.
"Country and industry weightings
are also widely diversified; more
than two-thirds of the portfolio
have been constructed through
individual security selection
rather than through market or
industry selection factors. Most
of my investment ideas emanate
from our research analysts, located
in the U.S., London, Tokyo, and
Hong Kong. Largely through this
research, I was drawn to the
opportunities that cyclical stocks
seemed to offer. These stocks
performed well during the period,
and the fund benefited from its
positions in energy companies.
Again, I try not to make large bets
on any given industry, but I do try
to pick those investments that have
the best risk-return characteristics."
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C>
TOP FIVE STOCKS AS OF APRIL
30, 1999
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS IN
THESE STOCKS 6 MONTHS AGO
Elf Aquitaine (France, Oil & 2.1 1.7
Gas)
BP Amoco PLC (United Kingdom, 1.8 0.9
Oil & Gas)
Shell Transport & Trading Co. 1.7 0.8
PLC (Reg.) (United Kingdom,
Oil & Gas)
Telecom Italia Spa (Italy, 1.5 0.1
Telephone Services)
SmithKline Beecham PLC 1.4 1.4
(United Kingdom, Drugs &
Pharmaceuticals)
TOP FIVE MARKET SECTORS AS OF
APRIL 30, 1999
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS IN
THESE MARKET SECTORS 6
MONTHS AGO
FINANCE 23.9 20.9
UTILITIES 15.3 13.7
ENERGY 7.9 7.1
HEALTH 7.9 8.2
NONDURABLES 5.7 4.5
TOP FIVE COUNTRIES AS OF
APRIL 30, 1999
(EXCLUDING CASH EQUIVALENTS) % OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS IN
THESE COUNTRIES 6 MONTHS AGO
United Kingdom 21.1 16.8
Japan 16.9 14.8
France 13.0 15.0
Germany 8.2 9.0
Netherlands 7.3 7.6
</TABLE>
PERCENTAGES ARE ADJUSTED FOR THE EFFECT OF FUTURES CONTRACTS, IF
APPLICABLE.
ASSET ALLOCATION (% OF FUND'S
INVESTMENTS)
AS OF APRIL 30, 1999
Stocks, investment
companies and
equity futures 93.5%
Convertible Bonds 0.8%
Government
Obligations 0.1%
Short-term
investments 5.6%
Row: 1, Col: 1, Value: 93.5
Row: 1, Col: 2, Value: 0.8
Row: 1, Col: 3, Value: 0.1
Row: 1, Col: 4, Value: 5.6
AS OF OCTOBER 31, 1998
Stocks, investment
companies and
equity futures 92.8%
Convertible Bonds 0.0%
Government
Obligations 0.2%
Short-term
investments 7.0%
Row: 1, Col: 1, Value: 92.8
Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 0.2
Row: 1, Col: 4, Value: 7.0
INVESTMENTS APRIL 30, 1999 (UNAUDITED)
Showing Percentage of Total Value of Investment in Securities
<TABLE>
<CAPTION>
<S> <C> <C> <C>
COMMON STOCKS - 89.0%
SHARES VALUE (NOTE 1) (000S)
AUSTRALIA - 2.8%
AMP Ltd. 139,200 $ 1,625
Australia & New Zealand 572,466 4,532
Banking Group Ltd.
Brambles Industries Ltd. 31,550 927
Broken Hill Proprietary Co. 318,845 3,602
Ltd. (The)
Cable & Wireless Optus Ltd. 801,200 1,802
(a)
Coles Myer Ltd. 463,526 2,461
Commonwealth Bank of Australia 73,300 1,334
CSR Ltd. 154,400 413
David Jones Ltd. 447,200 451
Fosters Brewing Group Ltd. 340,800 994
Goodman Fielder Ltd. 701,400 677
National Australia Bank Ltd. 263,000 5,117
News Corp. Ltd. 415,174 3,477
News Corp. Ltd. sponsored ADR 27,300 834
(ltd. vtg.)
North Ltd. 293,700 622
Rio Tinto Ltd. 139,300 2,345
Smith (Howard) Ltd. 27,100 230
WMC Ltd. 1,589,054 6,863
Woodside Petroleum Ltd. 128,900 878
39,184
BELGIUM - 0.5%
Electrabel SA 8,100 2,677
Fortis B 81,000 2,723
Solvay & Compagnie SA 10,900 762
Tractebel 4,600 634
6,796
CANADA - 1.0%
BCE, Inc. 186,200 8,498
Celestica, Inc. (sub-vtg.) (a) 32,000 1,274
Cinar Films, Inc. Class B 86,600 1,808
(sub. vtg.) (a)
Newbridge Networks Corp. (a) 20,800 771
Noranda, Inc. 69,500 930
13,281
DENMARK - 0.6%
Den Danske Bank Group AS 19,100 2,203
International Service Systems 19,600 1,153
AS Class B
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
DENMARK - CONTINUED
Tele Danmark AS Class B 12,200 $ 1,260
Unidanmark AS Class A 44,600 3,068
7,684
FINLAND - 2.2%
Helsinki Telephone Corp. 18,300 773
Class E
Merita Ltd. Series A 88,800 531
Nokia AB 252,200 18,710
Sampo Insurance Co. Ltd. 61,000 1,925
Sonera Group PLC (e) 46,600 928
Stora Enso Oyj 40,600 475
Teito Corp. Class B 43,000 1,716
UPM-Kymmene Corp. 172,200 5,224
30,282
FRANCE - 12.7%
Alcatel Alsthom Compagnie 20,300 2,468
Generale d'Electricite SA
(RFD)
Atos SA (a) 22,400 1,921
AXA SA de CV 86,190 11,152
Banque Nationale de Paris 143,100 11,886
Canal Plus SA 5,600 1,561
Cap Gemini SA 21,978 3,367
Castorama Dubois 14,500 3,477
Investissements SA
Club Mediterranee SA (a) 14,000 1,297
Coflexip SA sponsored ADR 51,300 2,283
Compagnie de St. Gobain 25,200 4,336
Compagnie Financiere de 32,200 3,430
Paribas Class A (Reg.)
Elf Aquitaine 183,763 28,716
France Telecom SA 131,900 10,677
Groupe Danone 25,700 6,884
L'Oreal SA 3,100 1,989
Lafarge SA 18,654 1,817
Lagardere S.C.A. (Reg.) 42,600 1,691
LVMH Moet Hennessy Louis 3,900 1,048
Vuitton
Michelin SA (Compagnie 59,851 2,722
Generale des Etablissements)
Class B
Pechiney SA Class A 10,243 434
Pinault Printemps SA 10,700 1,779
Rhone-Poulenc SA Class A 94,405 4,449
Sanofi SA 41,645 6,539
Scor SA 72,400 3,618
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
FRANCE - CONTINUED
Seita 18,900 $ 1,141
Societe Generale, France 38,100 6,834
Class A
Suez Lyonnaise des Eaux 41,400 7,057
Television Francaise 1 SA 21,000 4,113
(T.F.1)
Total SA Class B 113,890 15,489
Union Assurances Federales SA 32,900 3,672
Valeo SA 27,300 2,312
Vivendi SA 61,500 14,397
174,556
GERMANY - 7.4%
Allianz AG (Reg.) 23,100 7,264
BASF AG 201,900 8,893
Bayer AG 132,400 5,530
Bayerische Hypo-und 54,800 3,525
Vereinsbank AG
Continental Gummi-Werke AG 22,300 560
DaimlerChrysler AG (Reg.) 161,547 15,862
Deutsche Bank AG 25,100 1,455
Deutsche Bank AG (RFD) 75,000 4,209
Deutsche Lufthansa AG (Reg.) 134,500 3,126
Deutsche Telekom AG 294,300 11,626
Fresenius Medical Care AG 19,800 1,055
Hoechst AG 24,800 1,178
Holzmann (Phillip) AG (a) 1,200 192
Mannesmann AG 114,820 15,026
Metro AG 29,700 2,107
Munich Reinsurance AG:
(Reg.) 9,900 1,959
(RFD) 9,900 1,971
RWE AG 63,500 2,891
Schering AG 18,200 2,100
Siemens AG 62,100 4,583
Veba AG 44,100 2,423
Viag AG 7,300 3,664
Volkswagen AG 14,200 999
102,198
HONG KONG - 0.5%
Cheung Kong Holdings Ltd. 170,000 1,546
China Telecom (Hong Kong) 110,000 252
Ltd. (a)
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
HONG KONG - CONTINUED
Dah Sing Financial Holdings 286,000 $ 902
Ltd.
Dao Heng Bank Group Ltd. 350,000 1,422
Johnson Electric Holdings 541,000 1,616
Ltd.
Sun Hung Kai Properties Ltd. 98,927 868
Wing Hang Bank Ltd. 128,000 391
6,997
IRELAND - 0.7%
Bank of Ireland, Inc. 358,910 7,187
CRH PLC 103,516 2,044
9,231
ITALY - 4.0%
Assicurazioni Generali Spa 295,400 11,519
Banca Commerciale Italiana Spa 488,100 4,038
Banca di Roma 1,932,050 3,173
Eni Spa sponsored ADR 671,600 4,424
Italgas Spa 213,400 961
Olivetti & Co. Spa 234,000 815
San Paolo-IMI Spa 307,000 4,625
Telecom Italia Mobile Spa 328,000 1,979
Telecom Italia Spa 1,914,828 20,333
Unicredito Italiano Spa 682,900 3,481
Unione Immobiliare Spa 590,100 337
55,685
JAPAN - 14.7%
Aiful Corp. (e) 40,800 3,339
Bank of Tokyo-Mitsubishi Ltd. 63,000 930
Banyu Pharmaceutical Co. Ltd. 200,000 3,686
Canon, Inc. 139,000 3,400
Dai Nippon Printing Co. Ltd. 47,000 745
Daiwa House Industry Co. Ltd. 117,000 1,397
Daiwa Securities Co. Ltd. 320,000 1,957
DDI Corp. 2,069 10,277
Fancl Corp. 7,800 1,111
Fuji Bank Ltd. 347,000 2,709
Fuji Photo Film Co. Ltd. 172,000 6,498
Furukawa Electric Co. Ltd. 951,000 4,158
Hitachi Ltd. 198,000 1,445
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
JAPAN - CONTINUED
Honda Motor Co. Ltd. 252,000 $ 11,135
Hoya Corp. 19,000 995
Ito-Yokado Co. Ltd. 110,000 6,754
Kao Corp. 150,000 3,807
Kirin Brewery Co. Ltd. 59,000 667
Kokusai Securities Co. Ltd. 19,000 237
Kyocera Corp. 51,000 3,029
Matsushita Electric 468,000 8,899
Industrial Co. Ltd.
Minolta Co. Ltd. 546,000 3,023
Mitsubishi Electric Corp. 1,282,000 4,478
Mitsubishi Estate Co. Ltd. 398,000 4,071
Mitsubishi Trust & Banking 207,000 2,271
Corp.
Mitsui Fudosan Co. Ltd. 177,000 1,631
NGK Insulators Ltd. 98,000 1,194
Nichicon Corp. 54,000 712
Nikko Securities Co. Ltd. 1,080,000 6,197
Nikon Corp. (a) 62,000 852
Nippon Telegraph & Telephone 277 3,016
Corp.
Nomura Securities Co. Ltd. 573,000 6,182
NTT Mobile Communication 170 9,968
Network, Inc. (a)
Omron Corp. 630,000 8,681
Orix Corp. 48,000 3,864
Paris Miki, Inc. 560 19
Ricoh Co. Ltd. 200,000 1,927
Rohm Co. Ltd. 8,000 965
Ryohin Keikaku Co. Ltd. 10,700 1,949
Sankyo Co. Ltd. 69,000 1,448
Secom Ltd. 37,000 3,614
Sekisui House Ltd. 172,000 1,926
Sharp Corp. 483,000 5,664
Shimano, Inc. 27,000 688
Shin-Etsu Chemical Co. Ltd. 87,000 2,769
Shohkoh Fund & Co. Ltd. 4,100 2,404
Softbank Corp. 13,400 1,784
Sony Corp. 38,000 3,515
Sumitomo Realty & Development 292,000 1,274
Co. Ltd.
Takeda Chemical Industries 396,000 17,216
Ltd.
Takefuji Corp. 45,500 3,773
Takefuji Corp. (e) 32,700 2,712
Terumo Corp. 190,000 4,138
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
JAPAN - CONTINUED
THK Co. Ltd. 203,600 $ 3,530
Tokyo Electron Ltd. 32,000 1,823
Toyota Motor Corp. 59,000 1,689
Yahoo Japan Corp. 4 1,387
Yamanouchi Pharmaceutical Co. 87,000 2,755
Ltd.
202,284
LUXEMBOURG - 0.1%
Stolt Comex Seaway SA 63,500 794
MALAYSIA - 0.1%
Malayan Banking BHD 34,000 90
Oriental Holdings BHD 686,800 1,455
1,545
MEXICO - 0.6%
Banacci SA de CV Class O (a) 753,000 1,906
Elektra SA de CV Unit 341,200 238
Empresas ICA Sociedad 134,900 885
Controladora SA de CV
sponsored ADR
Grupo Financiero Bancomer SA 14,267,000 4,906
de CV Series A
Tubos de Acero de Mexico SA 60,600 670
sponsored ADR
8,605
NETHERLANDS - 7.2%
ABN AMRO Holding NV 206,200 4,923
Aegon NV 44,300 4,257
Ahrend NV 31,000 604
Akzo Nobel NV 274,200 12,411
CSM NV 24,400 1,307
Equant NV (Reg.) (a) 52,500 4,686
Fortis Amev NV 199,400 7,115
Heineken NV 60,400 3,038
ING Groep NV 232,208 14,334
Koninklijke (Royal) Philips 123,500 10,657
Electronics NV
Koninklijke Ahold NV 140,053 5,212
Koninklijke KPN NV 134,600 5,629
Nutreco Holding NV 43,604 1,771
Royal Dutch Petroleum Co. 51,200 3,005
(Hague Registry)
Samas Groep NV 48,400 712
STMicroelectronics NV (a) 24,100 2,458
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
NETHERLANDS - CONTINUED
TNT Post Group NV 50,200 $ 1,355
Unilever NV 101,900 6,991
Vedior NV 121,735 2,745
Vendex NV CVA 58,300 1,454
Vnu NV 86,100 3,492
Wolters Kluwer NV 22,000 960
99,116
NEW ZEALAND - 0.1%
Lion Nathan Ltd. 314,900 793
PORTUGAL - 0.2%
Electricidade de Portugal SA 93,600 1,764
Portugal Telecom SA 11,000 459
2,223
SINGAPORE - 0.5%
Allgreen Properties Ltd. 170,000 103
Development Bank of Singapore 171,000 1,815
Ltd. (For. Reg.)
Oversea-Chinese Banking Corp. 227,000 2,128
(For. Reg.)
Overseas Union Bank Ltd. 352,000 1,806
United Overseas Bank Ltd. 199,000 1,537
(For. Reg.)
7,389
SPAIN - 2.8%
Banco Bilbao Vizcaya SA (Reg.) 159,200 2,387
Banco Santander Central 364,630 7,938
Hispano SA
Endesa SA 194,200 4,326
Iberdrola SA 208,000 2,918
Mapfre Vida SA 26,200 823
Repsol SA 46,800 763
Telefonica SA 390,600 18,342
Telefonica SA sponsored ADR 10 1
Union Electrica Fenosa SA 44,100 588
38,086
SWEDEN - 1.8%
ABB AB Series A 149,300 2,085
Electrolux AB 148,400 3,016
Ericsson (L.M.) Telefon AB 253,700 6,850
Class B
Nordbanken Holding AB 337,100 2,124
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
SWEDEN - CONTINUED
Skandia Foersaekrings AB 112,000 $ 2,170
Svenska Handelsbanken 90,500 3,399
Swedish Match Co. 1,001,900 3,299
Volvo AB Class B 86,800 2,300
25,243
SWITZERLAND - 6.2%
ABB AG 960 1,402
Credit Suisse Group (Reg.) 53,488 10,617
Gretag Imaging Holding AG 14,800 1,413
(Reg.) (a)
Holderbank Financiere Glarus 607 732
AG (Bearer)
Julius Baer Holding AG 1,627 5,301
Nestle SA (Reg.) 8,788 16,279
Novartis AG (Reg.) 12,170 17,832
Roche Holding AG 756 8,899
participation certificates
Swiss Reinsurance Co. (Reg.) 1,900 4,162
Swisscom AG 11,200 4,115
United Bank of Switzerland AG 39,839 13,541
Zurich Allied AG (Reg.) 1,000 645
84,938
TAIWAN - 0.4%
Taiwan Semiconductor 1,548,000 5,231
Manufacturing Co. Ltd.
UNITED KINGDOM - 21.1%
Abbey National PLC 163,600 3,700
Allied Domecq PLC 204,100 1,598
Allied Zurich PLC (a) 678,900 9,012
Amvescap PLC 296,800 3,156
Asda Group PLC 547,300 1,832
Ashtead Group PLC 240,500 881
Bank of Scotland 100,000 1,498
Bass PLC 93,300 1,468
BBA Group PLC 159,660 1,278
Boots Co. PLC 141,700 1,878
BP Amoco PLC 1,344,080 25,356
British Aerospace PLC 193,308 1,448
British American Tobacco PLC 341,300 2,867
British Energy PLC 151,300 1,287
British Telecommunications PLC 856,700 14,371
BTP PLC 91,100 613
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
UNITED KINGDOM - CONTINUED
BTR Siebe PLC 549,900 $ 2,810
Cadbury Schweppes PLC 212,700 2,842
Caradon PLC 3,224,260 8,207
CGU PLC 210,600 3,330
Cookson Group PLC 734,900 2,072
Courtaulds Textiles PLC 340,100 956
Diageo PLC 485,100 5,607
Dixons Group PLC 158,500 3,388
Gallaher Group PLC 112,900 651
General Electric Co. PLC 347,600 3,687
Glaxo Wellcome PLC 530,800 15,460
Hays PLC 98,800 1,100
HSBC Holdings PLC 28,503 1,074
HSBC Holdings PLC Ord. 319,313 12,186
Kingfisher PLC 455,400 6,823
Ladbroke Group PLC 243,500 1,188
Lloyds TSB Group PLC 1,059,800 17,082
Marks & Spencer PLC 58,800 402
Misys PLC 109,261 1,027
National Grid Group PLC 347,630 2,410
National Westminster Bank PLC 92,700 2,236
Orange PLC (a) 254,600 3,470
Pearson PLC 166,900 3,555
Peninsular & Oriental Steam 79,400 1,156
Navigation Co.
Prudential Corp. PLC 290,000 4,142
Rentokil Initial PLC 1,450,711 8,548
Reuters Group PLC 394,200 5,347
Rio Tinto PLC (Reg.) 126,700 2,216
RMC Industries, Inc. 55,500 840
Royal & Sun Alliance 296,924 2,564
Insurance Group PLC
Royal Bank of Scotland Group 160,100 3,781
PLC
Saatchi & Saatchi PLC 159,300 618
Sainsbury (J.) PLC 251,900 1,603
Schroders PLC 24,700 591
Scottish & Newcastle PLC 89,100 1,115
Scottish & Southern Energy PLC 222,100 2,088
Shell Transport & Trading Co. 3,041,500 23,033
PLC (Reg.)
SmithKline Beecham PLC 1,483,802 19,494
Somerfield PLC 107,900 603
South African Breweries PLC 219,300 1,835
(a)
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
UNITED KINGDOM - CONTINUED
Standard Chartered PLC 220,300 $ 3,989
Tarmac PLC 2,236,684 4,270
Tomkins PLC 244,300 1,040
Unilever PLC 1,063,700 9,523
Vodafone Group PLC 838,213 15,035
Wimpey George PLC 339,000 928
WPP Group PLC 201,900 1,786
289,951
UNITED STATES OF AMERICA - 0.8%
AirTouch Communications, Inc. 57,200 5,341
(a)
Baker Hughes, Inc. 44,500 1,329
Halliburton Co. 42,000 1,790
McDermott International, Inc. 13,100 380
Newmont Mining Corp. 29,200 703
Noble Drilling Corp. (a) 27,000 530
Smith International, Inc. 8,500 381
Weatherford International, 25,100 850
Inc. (a)
11,304
TOTAL COMMON STOCKS 1,223,396
(Cost $920,880)
PREFERRED STOCKS - 1.3%
CONVERTIBLE PREFERRED STOCKS
- - 0.3%
AUSTRALIA - 0.3%
WBK Trust $3.135 STRYPES 107,700 3,736
NONCONVERTIBLE PREFERRED
STOCKS - 1.0%
GERMANY - 0.6%
Dyckerhoff AG 4,300 1,197
SAP AG (Systeme Anwendungen 14,200 5,367
Produkte)
Volkswagen AG 23,500 1,002
Wella AG 1,900 1,509
9,075
PREFERRED STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
NONCONVERTIBLE PREFERRED
STOCKS - CONTINUED
ITALY - 0.4%
Banca Intesa Spa 11,900 $ 31
Telecom Italia Spa Risp 940,525 5,060
5,091
TOTAL NONCONVERTIBLE 14,166
PREFERRED STOCKS
TOTAL PREFERRED STOCKS 17,902
(Cost $12,639)
INVESTMENT COMPANIES - 1.0%
EMERGING MARKETS - 0.3%
Asia Tigers Fund, Inc. 89,200 775
Emerging Markets 56,800 497
Infrastructure Fund, Inc.
Emerging Markets 45,900 476
Telecommunication Fund, Inc.
Morgan Stanley Emerging 68,800 761
Markets Fund, Inc. (a)
Templeton Dragon Fund, Inc. 194,400 1,871
4,380
GERMANY - 0.2%
New Germany Fund, Inc. (The) 228,200 2,738
HONG KONG - 0.1%
Asia Pacific Fund, Inc. 131,600 1,184
MULTI-NATIONAL - 0.3%
European Warrant Fund, Inc. 74,500 1,145
Morgan Stanley Asia-Pacific 375,700 3,428
Fund, Inc.
4,573
TAIWAN - 0.1%
Taiwan Fund, Inc. 50,200 816
TOTAL INVESTMENT COMPANIES 13,691
(Cost $14,187)
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
CONVERTIBLE BONDS - 0.8%
MOODY'S RATINGS (B) PRINCIPAL AMOUNT (D) (000S) VALUE (NOTE 1) (000S)
FRANCE - 0.3%
Groupe Danone 3% 1/1/02 A1 EUR 1,083 $ 1,883
Suez Lyonnaise des Eaux 4% A+ EUR 793 1,721
1/1/06
3,604
NETHERLANDS - 0.1%
Koninklijke Ahold NV 3% Baa1 NLG 2,970 1,897
9/30/03
UNITED STATES OF AMERICA - 0.4%
Nestle Holdings, Inc. 3% - 3,430 4,185
6/17/02
Roche Holdings, Inc. liquid - 1,980 1,218
yield option note 0% 4/20/10
(e)
5,403
TOTAL CONVERTIBLE BONDS 10,904
(Cost $11,861)
GOVERNMENT OBLIGATIONS - 0.4%
ITALY - 0.1%
Italian Republic 5% 6/28/01 Aa3 1,190 2,210
UNITED STATES OF AMERICA - 0.3%
U.S. Treasury Bills, yield at - 4,100 4,070
date of purchase 4.34%
7/1/99 (f)
TOTAL GOVERNMENT OBLIGATIONS 6,280
(Cost $6,027)
CASH EQUIVALENTS - 7.5%
SHARES
Taxable Central Cash Fund (c) 102,515,517 102,516
(Cost $102,516)
TOTAL INVESTMENT IN $ 1,374,689
SECURITIES - 100%
(Cost $1,068,110)
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FUTURES CONTRACTS
EXPIRATION DATE UNDERLYING FACE AMOUNT (000S) UNREALIZED GAIN/(LOSS) (000S)
PURCHASED
341 Nikkei 225 Index Jun. 1999 $ 28,422 $ 2,085
Contracts (Japan)
21 Topix Index Contracts Jun. 1999 2,297 97
(Japan)
$ 30,719 $ 2,182
The face value of futures purchased as a percentage of investment in
securities - 2.2%
</TABLE>
SECURITY TYPE ABBREVIATIONS
STRYPES - Structured Yield Product
Exchangeable for Common Stock
CURRENCY ABBREVIATIONS
EUR - European Monetary Unit
NLG - Dutch guilder
LEGEND
(a) Non-income producing
(b) Standard & Poor's credit ratings are used in the absence of a
rating by Moody's Investors Service, Inc.
(c) At period end, the seven-day yield on the Taxable Central Cash
Fund was 4.79%. The yield refers to the income earned by investing in
the fund over the seven-day period, expressed as an annual percentage.
(d) Principal amount is stated in United States dollars unless
otherwise noted.
(e) 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 $8,197,000 or 0.6% of net assets.
(f) 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 $3,275,000.
INCOME TAX INFORMATION
At April 30, 1999, the aggregate cost
of investment securities for income tax purposes was $1,069,622,000.
Net unrealized appreciation aggregated $305,067,000, of which
$338,734,000 related to appreciated investment securities and
$33,667,000 related to depreciated investment securities.
MARKET SECTOR
DIVERSIFICATION (UNAUDITED)
As a Percentage of Total Value of Investment in Securities
AEROSPACE & DEFENSE 0.1%
BASIC INDUSTRIES 3.8
CASH EQUIVALENTS 7.5
CONSTRUCTION & REAL ESTATE 3.1
DURABLES 4.8
ENERGY 7.9
FINANCE 23.9
GOVERNMENT OBLIGATIONS 0.4
HEALTH 7.9
HOLDING COMPANIES 0.4
INDUSTRIAL MACHINERY & 3.7
EQUIPMENT
INVESTMENT COMPANIES 1.0
MEDIA & LEISURE 1.9
NONDURABLES 5.7
PRECIOUS METALS 0.6
RETAIL & WHOLESALE 3.1
SERVICES 2.8
TECHNOLOGY 5.6
TRANSPORTATION 0.5
UTILITIES 15.3
100.0%
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
AMOUNTS IN THOUSANDS APRIL
30, 1999 (UNAUDITED)
ASSETS
Investment in securities, at $ 1,374,689
value (cost $1,068,110) -
See accompanying schedule
Foreign currency held at 2,987
value (cost $2,957)
Receivable for investments 5,552
sold
Receivable for fund shares 2,265
sold
Dividends receivable 5,222
Interest receivable 520
Other receivables 22
TOTAL ASSETS 1,391,257
LIABILITIES
Payable for investments $ 16,531
purchased
Payable for fund shares 9,785
redeemed
Distributions payable 18
Accrued management fee 1,035
Distribution fees payable 571
Payable for daily variation 432
on futures contracts
Other payables and accrued 600
expenses
TOTAL LIABILITIES 28,972
NET ASSETS $ 1,362,285
Net Assets consist of:
Paid in capital $ 1,006,225
Distributions in excess of (4,946)
net investment income
Accumulated undistributed net 52,020
realized gain (loss) on
investments and foreign
currency transactions
Net unrealized appreciation 308,986
(depreciation) on
investments and assets and
liabilities in foreign
currencies
NET ASSETS $ 1,362,285
STATEMENT OF ASSETS AND LIABILITIES - CONTINUED
AMOUNTS IN THOUSANDS (EXCEPT
PER-SHARE AMOUNTS) APRIL 30,
1999 (UNAUDITED)
CALCULATION OF MAXIMUM $18.62
OFFERING PRICE CLASS A: NET
ASSET VALUE and redemption
price per share ($15,576
(divided by) 836.50 shares)
Maximum offering price per $19.76
share (100/94.25 of $18.62)
CLASS T: NET ASSET VALUE and $18.86
redemption price per share
($1,173,583 (divided by)
62,234 shares)
Maximum offering price per $19.54
share (100/96.50 of $18.86)
CLASS B: NET ASSET VALUE and $18.38
offering price per share
($70,604 (divided by) 3,841
shares) A
CLASS C: NET ASSET VALUE and $18.68
offering price per share
($20,313 (divided by)
1,087.50 shares) A
INSTITUTIONAL CLASS: NET $18.61
ASSET VALUE, offering price
and redemption price per
share ($82,209 (divided by)
4,417 shares)
A REDEMPTION PRICE PER SHARE IS EQUAL TO NET ASSET VALUE LESS ANY
APPLICABLE CONTINGENT DEFERRED SALES CHARGE.
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS SIX
MONTHS ENDED APRIL 30, 1999
(UNAUDITED)
INVESTMENT INCOME $ 9,337
Dividends
Interest 2,789
12,126
Less foreign taxes withheld (971)
TOTAL INCOME 11,155
EXPENSES
Management fee Basic fee $ 4,827
Performance adjustment 1,118
Transfer agent fees 1,312
Distribution fees 3,273
Accounting fees and expenses 324
Non-interested trustees' 2
compensation
Custodian fees and expenses 300
Registration fees 52
Audit 24
Legal 3
Miscellaneous 5
Total expenses before 11,240
reductions
Expense reductions (244) 10,996
NET INVESTMENT INCOME 159
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities 53,865
Foreign currency transactions 520
Futures contracts 4,225 58,610
Change in net unrealized
appreciation (depreciation)
on:
Investment securities 134,281
Assets and liabilities in 11
foreign currencies
Futures contracts 1,343 135,635
NET GAIN (LOSS) 194,245
NET INCREASE (DECREASE) IN $ 194,404
NET ASSETS RESULTING FROM
OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
AMOUNTS IN THOUSANDS SIX MONTHS ENDED APRIL 30, YEAR ENDED OCTOBER 31, 1998
1999 (UNAUDITED)
INCREASE (DECREASE) IN NET
ASSETS
Operations Net investment $ 159 $ 4,291
income
Net realized gain (loss) 58,610 17,409
Change in net unrealized 135,635 25,052
appreciation (depreciation)
NET INCREASE (DECREASE) IN 194,404 46,752
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (160) (11,326)
From net investment income
In excess of net investment (3,285) -
income
From net realized gain (10,438) (66,913)
TOTAL DISTRIBUTIONS (13,883) (78,239)
Share transactions - net (66,113) 85,339
increase (decrease)
TOTAL INCREASE (DECREASE) 114,408 53,852
IN NET ASSETS
NET ASSETS
Beginning of period 1,247,877 1,194,025
End of period (including $ 1,362,285 $ 1,247,877
under (over) distribution of
net investment income of
$(4,946) and $2,133,
respectively)
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS - CLASS A
SIX MONTHS ENDED APRIL 30, 1999 YEARS ENDED OCTOBER 31,
(UNAUDITED) 1998 1997 1996 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 16.32 $ 16.89 $ 15.29 $ 14.98
period
Income from Investment
Operations
Net investment income D .02 .09 .09 .04
Net realized and unrealized 2.53 .51 2.39 .27
gain (loss)
Total from investment 2.55 .60 2.48 .31
operations
Less Distributions
From net investment income (.01) (.21) (.25) -
In excess of net investment (.10) - - -
income
From net realized gain (.14) (.96) (.63) -
Total distributions (.25) (1.17) (.88) -
Net asset value, end of period $ 18.62 $ 16.32 $ 16.89 $ 15.29
TOTAL RETURN B, C 15.80% 3.73% 16.95% 2.07%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in $ 16 $ 12 $ 5 $ 1
millions)
Ratio of expenses to average 1.55% A 1.55% F 1.90% F 1.16% A, F
net assets
Ratio of expenses to average 1.51% A, G 1.54% G 1.89% G 1.16% A
net assets after expense
reductions
Ratio of net investment .25% A .51% .53% 1.74% A
income to average net assets
Portfolio turnover 100% A 74% 70% 82%
</TABLE>
A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD SEPTEMBER 3, 1996 (COMMENCEMENT OF SALE OF CLASS A
SHARES) TO OCTOBER 31, 1996.
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS CLASS - T
SIX MONTHS ENDED APRIL 30, 1999 YEARS ENDED OCTOBER 31,
(UNAUDITED) 1998 1997 1996 1995 1994
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 16.48 $ 17.02 $ 15.30 $ 13.92 $ 14.06 $ 12.93
period
Income from Investment
Operations
Net investment income .00 D .06 D .13 D .19 D, E .07 .01
Net realized and unrealized 2.56 .52 2.38 1.29 (.11) 1.14
gain (loss)
Total from investment 2.56 .58 2.51 1.48 (.04) 1.15
operations
Less Distributions
From net investment income - (.16) (.16) (.09) - -
In excess of net investment (.04) - - - - -
income
From net realized gain (.14) (.96) (.63) (.01) (.02) (.02)
In excess of net realized gain - - - - (.08) -
Total distributions (.18) (1.12) (.79) (.10) (.10) (.02)
Net asset value, end of period $ 18.86 $ 16.48 $ 17.02 $ 15.30 $ 13.92 $ 14.06
TOTAL RETURN B, C 15.66% 3.57% 17.07% 10.69% (.25)% 8.91%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in $ 1,174 $ 1,086 $ 1,111 $ 995 $ 742 $ 654
millions)
Ratio of expenses to average 1.73% A 1.74% 1.66% 1.61% 1.90% 2.12%
net assets
Ratio of expenses to average 1.70% A, F 1.72% F 1.65% F 1.60% F 1.90% 2.12%
net assets after expense
reductions
Ratio of net investment .02% A .35% .80% 1.30% 1.01% .05%
income to average net assets
Portfolio turnover 100% A 74% 70% 82% 47% 34%
</TABLE>
A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN
LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
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.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS - CLASS B
SIX MONTHS ENDED APRIL 30, 1999 YEARS ENDED OCTOBER 31,
(UNAUDITED) 1998 1997 1996 1995 F
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 16.08 $ 16.69 $ 15.06 $ 13.92 $ 13.89
period
Income from Investment
Operations
Net investment income (loss) (.05) D (.03) D .02 D .08 D, E .01
Net realized and unrealized 2.49 .51 2.36 1.26 .02
gain (loss)
Total from investment 2.44 .48 2.38 1.34 .03
operations
Less Distributions
From net investment income - (.13) (.12) (.19) -
From net realized gain (.14) (.96) (.63) (.01) -
Total distributions (.14) (1.09) (.75) (.20) -
Net asset value, end of $ 18.38 $ 16.08 $ 16.69 $ 15.06 $ 13.92
period
TOTAL RETURN B, C 15.27% 3.00% 16.41% 9.73% .22%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 71 $ 58 $ 40 $ 19 $ 3
(in millions)
Ratio of expenses to average 2.30% A, G 2.30% G 2.30% 2.37% 1.97% A, G
net assets
Ratio of expenses to average 2.26% A, H 2.29% H 2.29% H 2.37% 1.97% A
net assets after expense
reductions
Ratio of net investment (.53)% A (.19)% .15% .53% .94% A
income (loss) to average
net assets
Portfolio turnover 100% A 74% 70% 82% 47%
</TABLE>
A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
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.
H FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.
<TABLE>
<CAPTION>
<S> <C> <C>
FINANCIAL HIGHLIGHTS - CLASS C
SIX MONTHS ENDED APRIL 30, 1999 YEAR ENDED OCTOBER 31,
(UNAUDITED) 1998 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 16.37 $ 17.23
period
Income from Investment
Operations
Net investment income (loss) D (.04) (.03)
Net realized and unrealized 2.55 .29
gain (loss)
Total from investment 2.51 .26
operations
Less Distributions
From net investment income - (.16)
In excess of net investment (.06) -
income
From net realized gain (.14) (.96)
Total distributions (.20) (1.12)
Net asset value, end of period $ 18.68 $ 16.37
TOTAL RETURN B, C 15.47% 2.84%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in $ 20 $ 15
millions)
Ratio of expenses to average 2.24% A, F 2.30% A, F
net assets
Ratio of expenses to average 2.21% A, G 2.30% A
net assets after expense
reductions
Ratio of net investment (.43)% A (.20)% A
income (loss) to average net
assets
Portfolio turnover 100% A 74%
</TABLE>
A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
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 FOR THE PERIOD NOVEMBER 3, 1997 (COMMENCEMENT OF SALE OF CLASS C
SHARES) TO OCTOBER 31, 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.
G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS
SIX MONTHS ENDED APRIL 30, 1999 YEARS ENDED OCTOBER 31,
(UNAUDITED) 1998 1997 1996 1995 F
SELECTED PER-SHARE DATA
Net asset value, beginning $ 16.36 $ 16.92 $ 15.20 $ 13.97 $ 13.89
of period
Income from Investment
Operations
Net investment income .05 D .13 D .22 D .21 D, E .05
Net realized and unrealized 2.50 .53 2.36 1.24 .03
gain (loss)
Total from investment 2.55 .66 2.58 1.45 .08
operations
Less Distributions
From net investment income (.01) (.26) (.23) (.21) -
In excess of net investment (.15) - - - -
income
From net realized gain (.14) (.96) (.63) (.01) -
Total distributions (.30) (1.22) (.86) (.22) -
Net asset value, end of $ 18.61 $ 16.36 $ 16.92 $ 15.20 $ 13.97
period
TOTAL RETURN B, C 15.80% 4.11% 17.73% 10.51% .58%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 82 $ 77 $ 38 $ 16 $ 1
(in millions)
Ratio of expenses to average 1.18% A 1.26% 1.17% 1.44% .97% A, G
net assets
Ratio of expenses to average 1.14% A, H 1.24% H 1.16% H 1.43% H .97% A
net assets after expense
reductions
Ratio of net investment .58% A .76% 1.31% 1.46% 1.94% A
income to average net assets
Portfolio turnover 100% A 74% 70% 82% 47%
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
D 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.
H FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.
NOTES TO FINANCIAL STATEMENTS
For the period ended April 30, 1999 (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
matters that affect that class. Class B shares will automatically
convert to Class A shares after a holding period of seven years from
the initial date of purchase. 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, 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
are 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.
FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Purchases
and sales of securities, income receipts and expense payments are
translated into U.S. dollars at the prevailing exchange rate on the
respective dates of the transactions.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
FOREIGN CURRENCY TRANSLATION - CONTINUED
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
and settlement date 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.
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, which may result in
distribution reclassifications, are primarily due to differing
treatments for futures transactions, foreign currency transactions,
passive foreign investment companies (PFIC) 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
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
and accumulated undistributed net realized gain (loss) on investments
and foreign currency transactions may include temporary book and tax
basis differences that will reverse in a subsequent period. Any
taxable income or gain remaining at fiscal year end is distributed in
the following year.
SECURITY TRANSACTIONS. Security transactions are accounted for as of
trade date. Gains and losses on securities sold are determined on the
basis of identified cost.
2. OPERATING POLICIES.
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 Fidelity Management & Research Company
(FMR), may transfer uninvested cash balances into one or more joint
trading accounts. These balances are invested in one or more
repurchase agreements 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., 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.
2. OPERATING POLICIES - CONTINUED
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 $596,381,000 and $596,561,000, respectively.
The market value of futures contracts opened and closed during the
period amounted to $89,558,000 and $130,600,000, 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
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
MANAGEMENT FEE - CONTINUED
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 (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. A portion of this fee may be reallowed to securities
dealers, banks and other financial institutions for the distribution
of each class of shares and providing shareholder support services.
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.
For the period, each class paid FDC the following amounts, a portion
of which was retained by FDC:
PAID TO FDC RETAINED BY FDC
CLASS A $ 18,000 $ -
CLASS T 2,846,000 59,000
CLASS B 321,000 242,000
CLASS C 88,000 66,000
$ 3,273,000 $ 367,000
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
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. A
portion of the sales charges paid to FDC are paid to securities
dealers, banks and other financial institutions.
For the period, sales charge amounts paid to and retained by FDC were
as follows:
PAID TO FDC RETAINED BY FDC
CLASS A $ 50,000 $ 19,000
CLASS T 227,000 71,000
CLASS B 122,000 122,000 *
CLASS C 6,000 6,000 *
$ 405,000 $ 218,000
* WHEN CLASS B AND CLASS C SHARES ARE INITIALLY SOLD, FDC PAYS
COMMISSIONS FROM ITS OWN RESOURCES TO SECURITIES DEALERS,
BANKS, AND OTHER FINANCIAL INSTITUTIONS 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.
FIIOC receives account fees and asset-based fees that vary according
to the account size and type of account of the shareholders of the
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT FEES - CONTINUED
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 $ 19,000 .27 *
CLASS T 1,124,000 .20 *
CLASS B 89,000 .28 *
CLASS C 20,000 .23 *
INSTITUTIONAL CLASS 60,000 .15 *
$ 1,312,000
* ANNUALIZED.
ACCOUNTING FEES. Fidelity Service Company, Inc., an affiliate of FMR,
maintains the fund's accounting records. The fee is based on the level
of average net assets for the month plus out-of-pocket expenses.
BROKERAGE COMMISSIONS. The fund placed a portion of its portfolio
transactions with brokerage firms which are affiliates of FMR. The
commissions paid to these affiliated firms were $1,900 for the period.
5. EXPENSE REDUCTIONS.
Effective January 1, 1999, 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 EXPENSE LIMITATIONS REIMBURSEMENT
CLASS A 1.55% $ -
CLASS T 1.80% -
CLASS B 2.30% 6,000
CLASS C 2.30% 1,000
INSTITUTIONAL CLASS 1.30% -
$ 7,000
FMR has also 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 $237,000 under this arrangement.
6. DISTRIBUTIONS TO SHAREHOLDERS.
Distributions to shareholders of each class were as follows:
AMOUNTS IN THOUSANDS SIX MONTHS ENDED YEAR ENDED
APRIL 30, OCTOBER 31,
1999 1998 A
FROM NET INVESTMENT INCOME
Class A $ 4 $ 68
Class T 120 10,334
Class B - 321
Class C 2 3
Institutional Class 34 600
Total $ 160 $ 11,326
IN EXCESS OF NET INVESTMENT
INCOME
Class A $ 74 $ -
Class T 2,475 -
Class C 47 -
Institutional Class 689 -
Total $ 3,285 $ -
FROM NET REALIZED GAIN
Class A $ 99 $ 310
Class T 9,084 62,023
Class B 507 2,341
Class C 116 27
Institutional Class 632 2,212
Total $ 10,438 $ 66,913
$ 13,883 $ 78,239
A DISTRIBUTIONS FOR CLASS C ARE FOR THE PERIOD NOVEMBER 3, 1997
(COMMENCEMENT OF SALE OF SHARES) TO OCTOBER 31, 1998.
7. SHARE TRANSACTIONS.
Transactions for each class of shares for the periods are as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
SHARES DOLLARS
AMOUNTS IN THOUSANDS SIX MONTHS ENDED APRIL 30, YEAR ENDED OCTOBER 31, SIX MONTHS ENDED APRIL 30,
1999 1998 A 1999
CLASS A Shares sold 2,135 $ 31,348
1,808
Reinvestment of distributions 11 23 173
Shares redeemed (1,746) (1,691) (30,605)
Net increase (decrease) 73 467 $ 916
CLASS T Shares sold 38,149 47,385 $ 676,505
Reinvestment of distributions 648 4,208 10,981
Shares redeemed (42,455) (50,964) (756,204)
Net increase (decrease) (3,658) 629 $ (68,718)
CLASS B Shares sold 1,031 2,567 $ 17,755
Reinvestment of distributions 27 153 454
Shares redeemed (848) (1,476) (14,663)
Net increase (decrease) 210 1,244 $ 3,546
CLASS C Shares sold 4,073 1,843 $ 71,621
Reinvestment of distributions 9 1 143
Shares redeemed (3,889) (949) (68,974)
Net increase (decrease) 193 895 $ 2,790
INSTITUTIONAL CLASS Shares 1,375 3,622 $ 24,104
sold
Reinvestment of distributions 36 146 601
Shares redeemed (1,677) (1,346) (29,352)
Net increase (decrease) (266) 2,422 $ (4,647)
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
DOLLARS
AMOUNTS IN THOUSANDS YEAR ENDED OCTOBER 31,
1998 A
CLASS A Shares sold $ 35,934
Reinvestment of distributions 371
Shares redeemed (28,405)
Net increase (decrease) $ 7,900
CLASS T Shares sold $ 815,252
Reinvestment of distributions 67,693
Shares redeemed (879,988)
Net increase (decrease) $ 2,957
CLASS B Shares sold $ 43,550
Reinvestment of distributions 2,417
Shares redeemed (24,505)
Net increase (decrease) $ 21,462
CLASS C Shares sold $ 30,151
Reinvestment of distributions 16
Shares redeemed (14,817)
Net increase (decrease) $ 15,350
INSTITUTIONAL CLASS Shares $ 58,034
sold
Reinvestment of distributions 2,327
Shares redeemed (22,691)
Net increase (decrease) $ 37,670
</TABLE>
A SHARE TRANSACTIONS FOR CLASS C ARE FOR THE PERIOD NOVEMBER 3, 1997
(COMMENCEMENT OF SALE OF SHARES) TO OCTOBER 31, 1998.
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 Investments Japan Limited,
Tokyo, Japan
Fidelity International Investment Advisors, Pembroke, Bermuda
Fidelity International Investment Advisors (U.K.) Limited, London,
England
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Richard A. Spillane, Jr., Vice President
Richard R. Mace, Jr., Vice President
Eric D. Roiter, Secretary
Richard A. Silver, Treasurer
Matthew N. Karstetter, Deputy Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
*INDEPENDENT TRUSTEES
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
Abigail P. Johnson
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
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 Latin America Fund
Fidelity Advisor Japan Fund
Fidelity Advisor Europe Capital Appreciation Fund
Fidelity Advisor International
Capital Appreciation Fund
Fidelity Advisor Overseas Fund
Fidelity Advisor Diversified International Fund
Fidelity Advisor Global Equity Fund
Fidelity Advisor TechnoQuantSM
Growth Fund
Fidelity Advisor Small Cap Fund
Fidelity Advisor Strategic
Opportunities Fund
Fidelity Advisor Mid Cap Fund
Fidelity Advisor Retirement Growth Fund
Fidelity Advisor Equity Growth Fund
Fidelity Advisor Large Cap Fund
Fidelity Advisor Dividend Growth Fund
Fidelity Advisor Growth
Opportunities Fund
OSI-SANN-0699 77851
1.703566.101
GROWTH AND INCOME FUNDS
Fidelity Advisor Growth & Income Fund
Fidelity Advisor Equity Income Fund
Fidelity Advisor Asset Allocation 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
(2_FIDELITY_LOGOS)(registered trademark)
