FIDELITY INVESTMENT TRUST, N-30B-2, 1994-03-04

FIDELITY INVESTMENT TRUST
N-30B-2, 1994-03-04

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(2_FIDELITY_LOGOS)FIDELITY

SHORT-TERM WORLD INCOME
FUND
ANNUAL REPORT
DECEMBER 31, 1993
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on minimizing taxes.

PERFORMANCE 4 How the fund has done over time.

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

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

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

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

NOTES 25 Footnotes to the financial statements.

REPORT OF INDEPENDENT 29 The auditor's opinion.
ACCOUNTANTS

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE
PROSPECTUS. NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A
BANK, AND FUND
SHARES ARE NOT BACKED OR GUARANTEED BY ANY BANK OR INSURED BY THE FDIC.

PRESIDENT'S MESSAGE

DEAR SHAREHOLDER:
Once the new year begins, many people start reviewing their finances and
calculating their tax bills. No one wants to pay more taxes than they have
to. But a recent survey of 500 U.S. households, conducted by Fidelity and
Yankelovich Partners, showed that few people have taken steps to reduce
their taxes under the new legislation. Many were not even aware that the
new tax laws were retroactive to January 1993.
Whether or not you're someone whose tax bill will increase as a result of
these changes, it may make sense to consider ways to keep more of what you
earn.
First, if your employer offers a 401(k) or 403(b) retirement savings plan,
consider enrolling. These plans are set up so you can make regular
contributions -
before taxes - to a retirement savings plan. They offer a disciplined
savings strategy, the ability to accumulate earnings tax-deferred, and
immediate tax savings. For example, if you earn $40,000 a year and
contribute 7% of your salary to your 401(k) plan, your annual contribution
is $2,800. That reduces your taxable income to $37,200 and, if you're in
the
28% tax bracket, saves you $784 in federal taxes. In addition, you pay no
taxes on any earnings until withdrawal.
It may be a good idea to contact your benefits office as soon as possible
to find out when you can enroll or increase your contribution. Most
employers allow employees to make changes only a few times each year.
Second, consider an IRA. Many people are eligible to make an IRA
contribution (up to $2,000) that is fully tax deductible. That includes
people who are not covered by company pension plans, or those within
certain income brackets. Even if you don't qualify for a fully deductible
contribution, any IRA earnings will grow tax-deferred until withdrawal.
Third, consider adding to your tax-free investments, either municipal bonds
or municipal bond funds. Often these can provide higher after-tax yields
than comparable taxable investments. For example, if you're in the new 36%
federal income tax bracket and invest $10,000 in a taxable investment
yielding 7%, you'll pay $252 in federal taxes and receive $448 in income.
That same $10,000 invested in a tax-free bond fund yielding 5.5% would
allow you to keep $550 in income.
These are three investment strategies that could help lower your tax bill
in 1994. If you're interested in learning more, please call us at
1-800-544-8888 or visit a Fidelity Investor Center.
Wishing you a prosperous new year,
Edward C. Johnson 3d, Chairman
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each figure
includes changes in a fund's share price, as well as reinvestment of any
dividends (or income) and capital gains (the profits the fund earns when it
sells bonds that have grown in value). You can also look at the fund's
dividends and yield.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1993 PAST 1 LIFE OF
YEAR FUND

Short-Term World Income 12.59% 19.35%

Lehman Brothers 1-3 Year Government Bond Index 5.39% n/a

Average Short World Multi-Market Income Fund 5.41% n/a

Consumer Price Index 2.75% 6.27%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one year, or since the fund started on
October 4, 1991. For example, if you had invested $1,000 in a fund that had
a 5% return over the past year, you would have $1,050. You can compare the
fund's returns to the performance of the Lehman Brothers 1-3 Year
Government Bond Index - a broad measure of the performance of short-term
U.S. government bonds. To measure how the fund stacked up against its
peers, you can compare these figures to the average short world
multi-market income fund, which reflects the performance of 48 funds
tracked by Lipper Analytical Services. Both benchmarks include reinvested
dividends and capital gains, if any, and excludes sales charges. Comparing
the fund's performance to the consumer price index helps show how your fund
did compared to inflation. (The periods covered by the CPI numbers are the
closest available match to those covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1993 PAST 1 LIFE OF
YEAR FUND

Short-Term World Income 12.59% 8.19%

Lehman Brothers 1-3 Year Government Bond Index 5.39% n/a

Average Short World Multi-Market Income Fund 5.41% n/a

Consumer Price Index 2.75% 2.73%

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
10/31/91 10000.00 10000.00
11/30/91 9953.55 10103.00
12/31/91 10013.89 10256.57
01/31/92 10073.94 10243.23
02/29/92 10167.77 10273.96
03/31/92 10203.64 10270.88
04/30/92 10340.53 10364.34
05/31/92 10393.31 10460.73
06/30/92 10450.56 10566.39
07/31/92 10563.78 10687.90
08/31/92 10594.05 10774.47
09/30/92 10348.12 10875.75
10/31/92 10510.46 10813.76
11/30/92 10442.46 10797.54
12/31/92 10497.72 10897.96
01/31/93 10595.47 11012.39
02/28/93 10718.77 11100.48
03/31/93 10825.85 11134.90
04/30/93 10901.97 11202.82
05/31/93 11019.77 11175.93
06/30/93 11203.36 11259.75
07/31/93 11348.51 11284.52
08/31/93 11487.10 11378.18
09/30/93 11471.76 11414.59
10/31/93 11633.29 11439.71
11/30/93 11676.62 11441.99
12/31/93 11819.17 11487.76
$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity
Short-Term World Income Fund on October 31, 1991, shortly after the fund
started. As the chart shows, by December 31, 1993, the value of your
investment would have grown to $11,819 - a 18.19% increase on your initial
investment. For comparison, look at how the Lehman Brothers 1-3 Year
Government Bond Index did over the same period. With dividends reinvested,
the same $10,000 investment would have grown to $11,488 - a 14.88%
increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is no
guarantee of how it will do
tomorrow. Bond prices, for
example, move in the opposite
direction of interest rates. In
turn, the share price, return, and
yield of a fund that invests in
bonds will vary. That means if
you sell your shares during a
market downturn, you might
lose money. But if you can ride
out the market's ups and downs,
you may have a gain.
(checkmark)
DIVIDENDS AND YIELD
PERIODS ENDED DECEMBER 31, 1993 PAST 30 PAST 6 PAST 1
DAYS MONTHS YEAR

Dividends per share n/a 37.33(cents) 67.52(cents)

Annualized dividend rate n/a 7.30% 6.76%

Annualized yield 5.94% n/a n/a

DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on an average share price of $10.14 over
the past six months and $9.99 over the past year, you can compare the
fund's income over these two periods. The 30-day annualized YIELD is a
standard formula for all funds based on the yields of the bonds in the
fund, averaged over the past 30 days. This figure shows you the yield
characteristics of the fund's investments at the end of the period and
helps you compare funds from different companies on an equal basis. It does
not reflect the costs of hedging and other currency gains and losses.
FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
Most international bond markets
richly rewarded investors in 1993,
easily outpacing U.S. bond returns.
Falling interest rates and low
inflation fueled strong returns in both
developed nations and, more notably,
in emerging markets. For example, in
Europe and Japan, weak economic
environments led rates to drop, which
benefited bond investors. The
passage of the North American Free
Trade Agreement in November
boosted returns in Latin American
countries, many of which were
already having a strong year. The
Salomon Brothers World
Government Bond Index - which
measures government bond market
performance in developed nations,
including the United States - rose
13.27% for the year. That figure was
dwarfed by the J.P. Morgan
Emerging Markets Bond Index,
which was up 44.17% in 1993. For
comparison, the Lehman Brothers
Aggregate Bond Index - a broad
measure of taxable bonds in the U.S.
market - returned 9.75% for the
year. Though providing returns that
appeared weak compared to those in
overseas markets, the U.S. bond
market posted relatively strong
numbers on a historical basis. Falling
interest rates through most of the year
fueled gains. The yield on the
benchmark 30-year Treasury bond
hit a three decade low in
mid-October, yielding 5.79%. By
year end, mild inflation fears, fueled
by a strengthening economy, had
pushed up the yield on the 30-year
bond to 6.35%.
An interview with Judy Pagliuca, Portfolio Manager of Fidelity
Short-Term World Income Fund
Q. JUDY, HOW DID THE FUND PERFORM?
A. It was a very good year. The fund's total return for the year ended
December 31, 1993 was 12.59%. Meanwhile, the average short world
multi-market income fund had a total return of 5.41%, according to Lipper
Analytical Services.
Q. HOW DO YOU ACCOUNT FOR SUCH A WIDE DISPARITY?
A. The simplest explanation may be the fund's concentration in countries
and regions of the world where I had firm convictions. For example, I
rotated assets during the period in and out of Thailand, Malaysia and
Indonesia; yet the fund's stake in Southeast Asia remained fairly constant
all year at about 25%. Another example would be Mexico, where the fund's
stake in short-term, peso-denominated bonds ranged as high as 27% at times
during the year. So when I've seen what looks like an excellent opportunity
for the fund, I've been willing to commit a large portion of the fund's
assets. Of course, there's always the risk that if I overweight a
particular region that then has economic problems, the fund would suffer
more than other funds with less of a commitment.
Q. WERE THERE OTHER STRATEGIES THAT HELPED?
A. Yes. The fund focuses, of course, on short-term investments. That said,
its average maturity may not exceed three years. In part, that's how the
fund seeks to achieve one of its primary goals - to minimize share-price
fluctuations. But when interest rates are falling and bond prices are
rising - as was the case dramatically in Europe last year - it helps to
have a longer maturity. So I went as far as I could last year in
accumulating longer-term European bonds - right up to the fund's maturity
limit. As of December 31, the fund's average maturity was 2.85 years.
Q. WHAT ABOUT THE IMPACT OF LOWER-RATED BONDS?
A. These bonds have added to the income portion of the fund's return,
although they've also added some risk. On September 1, the fund gained the
authority to invest up to 35% of its assets in bonds rated BBB or BB, but
no more than 10% in BBs alone. With the change, I was able for the first
time to buy corporate and government bonds of certain emerging-market
countries with great potential. For example, I bought both dollar-
denominated Mexican bonds and dollar-and peso-denominated Argentinean
bonds. Both countries have made great strides down the path of economic
reform. That process received a significant boost in October with the
passage of the North American Free Trade Agreement (NAFTA), which helped
the bonds' prices.
Q. HOW DID THE FUND WEATHER THE TURBULENCE THAT PRECEDED THE NAFTA VOTE?
A. Quite well. While I bought dollar-denominated Mexican corporate bonds, I
avoided Mexican peso-denominated bonds in the months leading up to the
vote. Last summer, feeling that the currency risks outweighed the potential
rewards, I also began reducing the fund's stake in Mexican money market
instruments, which are considered AA securities. As a result, the fund
sacrificed some income. But it more than made up for that when I was able
to buy back into the market at reduced prices on the eve of the vote, and
then catch the wave of euphoria that followed NAFTA's passage.
Q. THE FUND HAD A 6.3% STAKE IN INDEXED SECURITIES AT THE END OF DECEMBER.
WHAT ROLE DID THEY PLAY?
A. Indexed securities, a type of structured note, are like customized
bonds. They allow me to make highly specific bets aimed at capitalizing on
the insights of Fidelity's global research staff. For example, European
interest rates are widely expected to continue falling in 1994. But because
I feel that short-term interest rates may fall more quickly than long-term
rates, I've invested in indexed securities that vary in price with
short-term European rates but have the volatility of longer-term bonds.
Q. WERE CURRENCY ISSUES A FACTOR IN THE FUND'S PERFORMANCE LAST YEAR?
A. Yes, although not as much as 1992, when broad devaluations throughout
Europe greatly reduced the value of many investments in U.S. dollars. As a
rule, I try to minimize the impact of currency fluctuations. Sometimes that
involves hedging - either directly by buying forward currency contracts or
indirectly by making offsetting investments in currencies apt to move in
the opposite direction.
Q. WHAT'S YOUR OUTLOOK FOR THE FUND?
A. I'm optimistic that we'll be able to deliver better than money market
returns, with low volatility. But shareholders shouldn't necessarily expect
1994's results to match those of 1993, which were unusually good due to
global bond market conditions. That said, the outlook for next year looks
positive. Interest rates seem likely to keep falling in Europe; and I
continue to see opportunities for further gains in emerging markets.
FUND FACTS
GOAL: high current income with
preservation of capital by
investing in short-term securities
around the world
START DATE: October 4, 1991
SIZE: as of December 31, 1993,
over $422 million
MANAGER: Judy Pagliuca, since
October 1991; manager, Fidelity
Yen, Deutsche Mark, and
Sterling Performance Portfolios,
since November 1989; Fidelity
Global Bond Fund, December
1986 - October 1993
(checkmark)
JUDY PAGLIUCA ON INCOME VS. PRICE
RETURNS:
"The fund's share price suffered
as a result of the 1992 currency
crisis in Europe. So up through
May 1993, one of my primary
aims was to return the fund's
share price to its previous level.
In fact, the market was such that
it lent itself well to that strategy,
and we more than met our goal.
Lately, though, as conditions
have changed, so has the focus
of the fund - back towards
income. Looking ahead, I plan
to pursue more share-price
stability in 1994 and perhaps a
slightly higher income."
(bullet) As of December 31, 1993, the
fund had investments in 17
countries around the world.
(bullet) At the end of December, the
fund was 35% in corporate
securities, 37% in government
securities, 13% in other
(including indexed securities),
and 15% in cash and short-term
investments.
(bullet) In 1993, three factors
contributed roughly equally to
the fund's total return: currency
strategies, interest-rate
movements, and other income
sources.

INVESTMENT CHANGES

The charts below highlight three different aspects of the fund's
investments: the country where they were issued, their sensitivity to
interest-rate changes, and their currency exposure. The top countries in
each table differ because some securities have more interest-rate risk than
others, because securities issued in one country may be denominated in
another country's currency, and because of the effects of currency hedging.
TOP COUNTRIES AS OF DECEMBER 31, 1993

<TABLE>
<CAPTION>
<S> <C> <C>
(BY LOCATION OF ISSUER) % OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS
SIX MONTHS AGO

Mexico 29 24

United States 15 19

Canada 9 9

Ireland 8 0

France 7 6

</TABLE>

TOP COUNTRIES ARE BASED ON THE LOCATION OF THE ISSUER OF EACH SECURITY,
INDICATING WHERE THE FUND IS EXPOSED TO POLITICAL AND CREDIT RISKS. THE
FUND'S LARGEST POSITION AS OF DECEMBER 31 WAS IN SECURITIES OF MEXICAN
ISSUERS.
TOP INTEREST-RATE EXPOSURES AS OF DECEMBER 31, 1993
(ESTIMATED, BY COUNTRY) % OF FUND'S TOTAL % OF INTEREST-RATE
INTEREST-RATE EXPOSURE EXPOSURE SIX MONTHS AGO

United States 23 14

France 12 10

Sweden 11 15

Finland 10 9

Ireland 10 0

FIDELITY ESTIMATES INTEREST-RATE EXPOSURES BASED ON THE DURATION, OR
INTEREST-RATE SENSITIVITY, OF THE FUND'S HOLDINGS. AS OF DECEMBER 31, THE
FUND WAS MOST SENSITIVE TO INTEREST-RATE MOVEMENTS IN THE U.S., WHICH
ACCOUNTED FOR APPROXIMATELY 23% OF THE FUND'S INTEREST-RATE EXPOSURE.
TOP CURRENCY EXPOSURES AS OF DECEMBER 31, 1993
(ESTIMATED, BY CURRENCY) % OF FUND'S NET ASSETS % OF NET ASSETS
SIX MONTHS AGO

U.S. dollar 64 41

Malaysian ringgit 10 5

Mexican peso 10 12

Indonesian rupiah 8 4

Italian lira 5 7

ESTIMATED CURRENCY EXPOSURES INCLUDE THE IMPACT OF HEDGING, WHICH REDUCES
FOREIGN CURRENCY RISK AND INCREASES THE FUND'S U.S. DOLLAR POSITION. THE
MALAYSIAN RINGGIT AND MEXICAN PESO, EACH AT APPROXIMATELY 10% OF ASSETS,
WERE THE FUND'S LARGEST FOREIGN CURRENCY EXPOSURES AS OF DECEMBER 31.
INVESTMENTS DECEMBER 31, 1993

Showing Percentage of Total Value of Investments

NONCONVERTIBLE BONDS - 34.6%
MOODY'S RATINGS (D) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (A)
ARGENTINA - 0.8%
Acindar Industria Argentina De Aceros:
euro 9 1/2%, 10/23/95 - $ 350,000 $ 343,000 0045149G
10 1/2%, 12/10/94 (g) - 250,000 245,000 004514AA
Alpargatas SAIC 9%, 11/26/96 (g) - 2,000,000 1,990,000 020545AB
Invertrad SA 9 1/4%, 10/14/94 (g) - 780,000 778,050 46127RAA
3,356,050
CANADA - 3.9%
Ford Motor Credit Canada:
euro 13 1/8%, 6/7/95 A2 CAD 3,400,000 2,838,585 34599AAA
10 1/2%, 5/17/96 Aa3 CAD 4,300,000 3,606,242 34599AAJ
General Motors Acceptance Corp. Canada Ltd.
10%, 8/30/95 A1 CAD 2,400,000 1,940,155 379992AB
11 7/8%, 9/7/95 A1 CAD 3,900,000 3,220,322 379992AA
General Motors Canada 10.85%, 7/24/96 - CAD 4,000,000 3,358,578
375997AA
Montreal Canada Ltd. euro 11 1/4%, 3/7/96 A+ CAD 1,400,000 1,177,726
6148529A
16,141,608
COLOMBIA - 1.0%
Financiera Energetica Nacional 6 5/8%,
12/13/96 (g) - 4,000,000 3,980,000 317703AA
CZECH REPUBLIC - 0.3%
Komercni Banka 17%, 5/3/98 (b)(f) - CSK 40,000,000 1,338,884 50499CAB
FRANCE - 4.8%
Credit Local De France 8 7/8%, 6/10/02 (c) Aaa FRF 100,000 20,162,190
226998AG
INDONESIA - 1.2%
Indorayon Yankee 9 1/8%, 10/15/00 BB 2,000,000 2,010,000 69364LAB
PT Semen Cibinong 9%, 12/15/98 (g) - 3,000,000 3,030,000 69364UAA
5,040,000
MEXICO - 12.9%
Apasco SA euro 10 1/4%, 12/11/96 Ba2 385,000 408,100 037993AA
Banco Nacional de Comercio Exterior SNC
7 1/2%, 7/1/00 Ba2 1,400,000 1,417,500 059612AC
NONCONVERTIBLE BONDS - CONTINUED
MOODY'S RATINGS (D) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (A)
MEXICO - CONTINUED
Bancomer SNC euro:
8%, 7/7/98 - $ 7,450,000 $ 7,822,500 05999KAT
8%, 4/14/00 Ba2 2,475,000 2,543,062 0596129A
8%, 8/5/03 Ba2 1,050,000 1,078,875 0596129C
Cemex SA notes 8 7/8%, 6/10/98 (g) Ba2 2,000,000 2,152,500 151290AG
Controladora Comercial Mexicana SA de CV
euro 8 3/4%, 4/21/98 - 110,000 115,637 212996AA
Desc (Soc De Fomento Indust) euro 11%,
12/15/97 - 6,480,000 7,354,800 252996AB
El Puerto de Liverpool SA de CV
7 1/4%, 10/19/96 (g) . - 3,000,000 3,037,500 28383QAA
Empresas ICA Sociedad Controladora
SA de CV 9 3/4%, 2/11/98 (g) - 5,220,000 5,768,100 292448AA
First Mexican Acceptance Corp. 8 3/4%,
9/15/96 - 2,900,000 2,993,902 321998AB
Fomento Economico Mexicano SA de CV
euro 9 1/2%, 7/22/97 - 2,530,000 2,751,375 3444189A
Grupo Condumex SA de CV:
6 1/4%, 7/27/96 (g) - 1,500,000 1,492,500 399904AA
6 1/4%, 7/27/96 - 750,000 746,250 3999049A
Grupo Simec 8 7/8%, 12/15/98 (g) - 3,000,000 3,056,250 40049LAA
Grupo Televisa SA euro 10%, 11/9/97 Ba2 2,600,000 2,879,500 40049J9C
Hylsa SA De CV 0%, 4/28/94 (g) - 2,000,000 1,962,688 4490869B
ICA euro 9 3/4%, 2/11/98 - 2,980,000 3,292,900 2924489A
Nafin Finance Trust II 6%, 3/31/99 (b)(g) - 3,000,000 2,992,500
62971RAA
53,866,439
NEW ZEALAND - 0.3%
Telecommunication Corp. of New Zealand
euro 10%, 7/10/98 Aa1 NZD 2,000,000 1,271,156 8792789A
SWEDEN - 0.4%
Svenska Fastighetskredit AB 12%, 9/18/96 Aa2 SEK 6,000,000 802,766
953995AC
Swedish National Housing Finance Corp.
mtg. 12 1/2%, 1/23/97 - SEK 7,000,000 960,723 956995AA
1,763,489
THAILAND - 1.0%
Industrial Finance Corp. Thailand 7 1/4%,
12/2/96 (c) - THB 100,000 3,923,970 457998AB
NONCONVERTIBLE BONDS - CONTINUED
MOODY'S RATINGS (D) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (A)
UNITED STATES OF AMERICA - 8.0%
Aristar, Inc. 8.55%, 6/1/95 Baa1 $ 1,000,000 $ 1,054,000 040420AK
Associates Corp. of North America 6%, 12/1/95 A1 2,250,000 2,308,792
046003ED
Commercial Credit Group, Inc. 9 7/8%, 12/1/95 A2 7,000,000 7,651,070
201615BP
Ford Motor Credit Co.:
7.9%, 9/26/95 A2 3,000,000 3,163,590 3454005S
9.55%, 10/5/95 A2 1,000,000 1,081,250 34599BFJ
General Motors Acceptance Corp. 6%, 1/25/95 Baa1 5,000,000 5,087,700
37042MG7
Supervalu, Inc. 5 7/8%, 11/15/95 A3 10,500,000 10,716,825 868536AA
U.S. Leasing International, Inc. 8 3/4%, 5/1/96 A2 2,000,000 2,164,300
912129AB
33,227,527
TOTAL NONCONVERTIBLE BONDS
(Cost $144,284,310) 144,071,313
GOVERNMENT OBLIGATIONS - 37.5%

ARGENTINA - 2.9%
Argentina Republic BOCON:
Peso 3.64%, 9/1/02 - ARP 3,230,784 2,381,208 039995AJ
3.64%, 4/1/01 - ARP 12,257,337 9,726,778 039995AH
12,107,986
CANADA - 5.5%
Alberta Finance Corp.:
0%, 6/15/96 Aa1 CAD 3,250,000 2,165,027 012993AG
0%, 6/15/97 Aa1 CAD 1,300,000 806,310 012993AK
Canadian Government 9 1/4%, 5/1/96
Series H80 Aaa CAD 7,500,000 6,214,715 135087RR
Ontario Hydro euro 10 5/8%, 1/8/96 Aa2 CAD 8,900,000 7,496,402 683078DT
Ontario Province 8 3/4%, 4/16/97 Aa2 CAD 6,720,000 5,568,894 6832349G
Quebec Province 10 1/4%, 4/7/98 Aa3 CAD 1,000,000 872,707 748148KF
23,124,055
DENMARK - 6.1%
Denmark Government:
9%, 11/15/95 Aa1 DKK 55,000,000 8,515,210 249998AE
9%, 11/15/00 Aa1 DKK 29,000,000 4,980,648 2485059A
GOVERNMENT OBLIGATIONS - CONTINUED
MOODY'S RATINGS (D) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (A)
DENMARK - CONTINUED
Kingdom of Denmark:
9%, 11/15/96 Aa1 DKK 44,300,000 $ 7,078,325 249998AK
9%, 11/15/98 Aa1 DKK 29,000,000 4,841,941 249998AQ
25,416,124
FINLAND - 0.4%
Finland Republic 11 3/4%, 3/15/96 Aa2 FIM 8,000,000 1,537,270 3178739F
FRANCE - 1.7%
Republic of France:
BTAN 8 1/2%, 11/12/97 Aaa FRF 30,000,000 5,682,210 351996AT
OAT 8 1/2%, 4/25/03 Aaa FRF 7,000,000 1,428,029 351996AQ
7,110,239
INDONESIA - 2.9%
Indonesia 0%, 1/27/94 (c) - IDR 13,000,000 6,098,887
Indonesia 0%, 5/19/94 (c) - IDR 13,125,000 5,974,160
12,073,047
IRELAND - 7.8%
Ireland Government:
9%, 7/30/96 Aa3 IEP 12,500,000 18,907,842 4626779E
9%, 7/15/01 Aa3 IEP 6,300,000 10,314,444 4626779J
9 1/4%, 7/11/03 Aa3 IEP 2,000,000 3,381,416 4626779H
32,603,702
MEXICO - 2.7%
Mexican Bondes 12.73%, 9/22/94 (g) - MXN 24,500,000 7,918,564 597998TE
Mexican Government Cetes, 5/26/94 - MXN 10,000,000 3,086,381 597998UK
11,004,945
SWEDEN - 2.7%
Kingdom of Sweden 10 3/4%, 1/23/97 Aa2 SEK 83,000,000 11,107,915
8702009Q
TRINIDAD AND TOBAGO - 0.2%
Trinidad and Tobago 9.75%, 11/3/00 Ba2 906,000 935,445
GOVERNMENT OBLIGATIONS - CONTINUED
MOODY'S RATINGS (D) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (A)
UNITED KINGDOM - 4.6%
United Kingdom Treasury 12%, 11/20/98 Aaa GBP 10,300,000 $ 19,158,998
9107689R
TOTAL GOVERNMENT OBLIGATIONS
(Cost $157,420,346) 156,179,726
OTHER SECURITIES - 13.0%

COLLATERALIZED NOTES - 6.7%
MEXICO - 6.7%
Wilton Investments Ltd. sr. (collateralized by
Mexican and U.S. govt. securities) (f)
Series B, 0%, 3/4/94 12,010,000 11,905,273 972998AB
Series C, 0%, 6/3/94 16,330,000 15,959,799 972998AD
27,865,072
INDEXED SECURITIES - 6.3%
FINLAND - 1.6%
Finnish Export Credit note 3.5628%, 4/19/94
(inversely indexed to 1-year FIM HELIBOR
rate, multiplied by 10) (b)(h) 5,000,000 6,584,500 31899HAF
UNITED KINGDOM - 0.6%
Barclays Bank PLC note 3 5/8%, 3/25/94
(inversely indexed to 1-year FIM HELIBOR rate,
multiplied by 10) (b)(h) 2,000,000 2,647,600 06738C9S
UNITED STATES OF AMERICA - 4.1%
AIG Matched Funding Corp. note 2.88%, 9/23/94
(coupon inversely indexed to HELIBOR and
principal indexed to value of 2-year Finnish
securities both multiplied by 6) (b)(h) 1,900,000 2,046,110 012994AH
Bankers Trust Company note:
4.2075%, 8/31/94 (coupon inversely
indexed to 6-month HELIBOR
rate, multiplied by 6) (b)(h) 300,000 329,400 0669918F
14.4375% 7/15/94 (indexed to
CSK denom. CEZ a.s. bond
16 1/2%, 6/25/98) (b)(h) 3,000,000 3,074,100 0669917L
OTHER SECURITIES - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (A)
INDEXED SECURITIES - CONTINUED
UNITED STATES OF AMERICA - CONTINUED
Citibank Nassau 22.01%, 8/31/94 (coupon inversely
indexed to 1-month CAD Bankers' Acceptance
rate, multiplied by 11) (b)(h) $ 1,000,000 $ 1,188,000 223991AM
ITT Corp. Note:
3.465%, 2/25/94 (inversely indexed to
1-year SEK swap rate, multiplied
by 10) (b)(h) 3,700,000 4,462,940 4506799D
3.66%, 6/27/94 (inversely indexed
to 1-year SEK swap rate, multiplied
by 10) (b)(h) 5,000,000 5,469,500 4506799M
Merck & Co. note 3.78%, 1/25/95 (inversely
indexed to 2-year SEK swap rate, multiplied
by 10) (b)(h) 500,000 561,800 5893319P
17,131,850
TOTAL INDEXED SECURITIES 26,363,950
TOTAL OTHER SECURITIES
(Cost $50,122,570) 54,229,022
CERTIFICATES OF DEPOSIT - 2.5%

THAILAND - 2.5%
Siam Comm. Bank Co. Ltd. 7 3/8%, 11/7/94 (c) THB 150,000 5,897,670
7885109P
Thai Military Bank Ltd. 8.52%, 9/20/96 THB 10,000,000 402,195 901999AD
Thai Military Bank TCD 8%, 10/21/96 (c) THB 100,000 3,975,310 901999AA
TOTAL CERTIFICATES OF DEPOSIT
(Cost $10,372,439) 10,275,175
COMMERCIAL PAPER - 9.0%

ARGENTINA - 1.4%
Bridas Energy Corp. 0%, 6/14/94 5,890,000 5,695,630 107995AA
MEXICO - 6.9%
Bancomer SNC 0%, 2/3/94 MXN 19,391,290 6,175,246 05999KBE
Nacional Financiera:
SNC 0%, 6/2/94 MXN 53,035,348 16,263,035 66299CAH
0%, 3/1/94 MXN 20,184,079 6,379,624 66299CAC
28,817,905
COMMERCIAL PAPER - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (A)
NETHERLANDS - 0.7%
Unilever (Czech) 0%, 10/05/94 (c) CSK 100,000 $ 3,092,515 9047849B
TOTAL COMMERCIAL PAPER
(Cost $37,334,829) 37,606,050
REPURCHASE AGREEMENTS - 3.4%
MATURITY
AMOUNT
UNITED STATES - 3.4%
Investments in repurchase agreements
(U.S. Treasury obligations), in a
joint trading account at 3.23%
dated 12/31/93 due 1/3/94 $ 14,205,823 14,202,000
CALL OPTION ON MEXICAN TREASURY BONDS - 0.0%
EXPIRATION DATE/ UNDERLYING FACE
STRIKE PRICE AMOUNT AT VALUE
1 Call Option (Cost $26,000) Feb. 94/78 $ 1,000,000 55,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $413,762,494) $ 416,618,286
FORWARD FOREIGN CURRENCY CONTRACTS
SETTLEMENT UNREALIZED
DATE(S) VALUE GAIN/(LOSS)
CONTRACTS TO BUY
39,945,550 FIM 2/17/94 $6,868,867 $ 31,217
37,486,360 FRF 2/2/94 6,312,366 (89,744)
4,849,837 DEM 1/4/94 to 1/19/94 2,787,438 (91,472)
43,586,500,000 IDR 1/26/94 to 5/31/94 20,316,095 41,575
36,890,919,276 ITL 2/28/94 21,319,429 (145,003)
364,939,038 JPY 1/10/94 to 1/19/94 3,264,352 (119,237)
109,111,950 MYR 1/31/94 to 4/29/94 40,552,796 (977,963)
31,369,480 NZD 3/1/94 17,488,485 453,289
TOTAL CONTRACTS TO BUY
(Payable amount $119,807,166) $ 118,909,828 $ (897,338)
THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 28.5%
CONTRACTS TO SELL
459,908,922 BEF 1/26/94 $ 12,649,305 $ 176,390
10,123,801. GBP 2/28/94 14,903,348 19,134
51,316,925 CAD 1/13/94 to 1/27/94 38,811,758 (289,352)
133,300,267 DKK 2/1/94 19,554,210 (200,269)
46,274,361 FIM 2/17/94 7,957,142 (87,353)
319,603,419 FRF 2/2/94 53,818,341 2,092,109
11,427,673 DEM 1/4/94 to 2/28/94 6,564,183 220,529
22,937,356 IEP 1/31/94 32,189,139 (171,267)
1,528,921,838 JPY 1/10/94 to 2/28/94 13,874,537 188,840
108,996,123 SEK 2/25/94 12,983,349 35,957
TOTAL CONTRACTS TO SELL
(Receivable amount $215,290,030) $ 213,305,312 $ 1,984,718
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 51.2%
CURRENCY TYPE ABBREVIATIONS
ARP - Argentinean peso
BEF - Belgian franc
GBP - British pound
CAD - Canadian dollar
CSK - Czech koruna
DKK - Danish krone
FIM - Finnish markka
FRF - French franc
DEM - German Deutsche mark
IDR - Indonesian rupiah
IEP - Irish pound
ITL - Italian lira
JPY - Japanese yen
MYR - Malaysian ringgit
MXN - Mexican peso
NZD - New Zealand dollar
SGD - Singapore dollar
SEK - Swedish krona
CHF - Swiss franc
THB - Thai baht
LEGEND
1. Principal amount is stated in United States dollars unless otherwise
noted.
2. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
3. Principal amount in thousands.
4. Standard & Poor's Corporation credit ratings are used in the absence
of a rating by Moody's Investors Service, Inc.
5. Debt obligation initially issued in zero coupon form which converts to
coupon form at a specified rate and date.
6. Restricted securities - investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on each holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
Wilton Investments, Ltd.
sr. (collateralized by
Mexican and U.S.
govt. securities):
Series B, 0%, 3/4/94 3/3/93 $ 11,114,174
Series C, 0%, 6/3/94 3/3/93 14,824,211
Komercni Banka
17%, 5/3/98 10/14/93 1,387,543
7. 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 $30,485,088 or 7.2% of net
assets.
8. An Inverse floating rate security is a security where the coupon is
inversely indexed to a floating interest rate multiplied by a specified
factor. If the floating rate is high enough, the coupon rate may be zero or
be a negative amount that is carried forward to reduce future interest
and/or principal payments. The price may be considerably more volatile than
the price of a comparable fixed rate security.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 44.2% AAA, AA, A 44.2%
Baa 1.5% BBB 1.3%
Ba 2.7% BB 1.5%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
For some foreign government obligations, FMR has assigned the ratings of
the sovereign credit of the issuing government. The percentage not rated by
either S&P or Moody's amounted to 18% including long-term debt
categorized as other securities.
INCOME TAX INFORMATION
At December 31, 1993, the aggregate cost of investment securities for
income tax purposes was $413,905,257. Net unrealized appreciation
aggregated $2,713,029, of which $8,253,758 related to appreciated
investment securities and $5,540,729 related to depreciated investment
securities.
At December 31, 1993, the fund had a capital loss carryforward of
approximately $2,673,000 which will expire on December 31, 1999.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
DECEMBER 31, 1993

ASSETS 9. 10.

11.Investment in securities, at value (including repurchase 12. $ 416,618,286
agreements of $14,202,000) (cost $413,762,494) (Notes 1
and 2) - See accompanying schedule

13.Long foreign currency contracts held, at value (cost 14. 118,909,828
$119,807,166) (Note 2)

15.Short foreign currency contracts (Note 2) $ (213,305,312) 16.
Contracts held, at value

17. Receivable for contracts held 215,290,030 1,984,718

18.Receivable for investments sold 19. 125,000

20.Net receivable for closed foreign currency contracts 21. 24,877
(Note 2)

22.Receivable for fund shares sold 23. 1,731,604

24.Interest receivable 25. 7,814,555

26. TOTAL ASSETS 27. 547,208,868

LIABILITIES 28. 29.

30.Payable to custodian bank 23,902 31.

32.Payable for foreign currency contracts held (Note 1) 119,807,166 33.

34.Payable for investments purchased 3,896,127 35.

36.Accrued management fee 210,832 37.

38.Other payables and accrued expenses 669,271 39.

40. TOTAL LIABILITIES 41. 124,607,298

42.NET ASSETS 43. $ 422,601,570

44.Net Assets consist of (Note 1): 45. 46.

47.Paid in capital 48. $ 424,619,777

49.Distributions in excess of net investment income 50. (3,288,856)

51.Accumulated undistributed net realized gain (loss) on 52. (2,672,523)
investments

53.Net unrealized appreciation (depreciation) on: 54. 55.

56. Investment securities 57. 2,855,792

58. Foreign currency contracts 59. 1,087,380

60.NET ASSETS, for 41,461,833 shares outstanding 61. $ 422,601,570

62.NET ASSET VALUE, offering price and redemption price per 63. $10.19
share ($422,601,570 (divided by) 41,461,833 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED DECEMBER 31, 1993

INVESTMENT INCOME 65. $ 37,638,738
64.Interest

66.Foreign exchange gain (loss) 67. (613,706)

68. 69. 37,025,032

70.Less foreign taxes withheld 71. (994,447)

72. TOTAL INCOME 73. 36,030,585

EXPENSES 74. 75.

76.Management fee (Note 4) $ 2,464,314 77.

78.Transfer agent fees (Note 4) 862,626 79.

80.Accounting fees and expenses (Note 4) 245,437 81.

82.Non-interested trustees' compensation 2,814 83.

84.Custodian fees and expenses 273,579 85.

86.Registration fees 12,572 87.

88.Audit 92,673 89.

90.Legal 7,857 91.

92.Interest (Note 5) 44,629 93.

94.Miscellaneous 5,873 95.

96. TOTAL EXPENSES 97. 4,012,374

98.NET INVESTMENT INCOME 99. 32,018,211

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 101. 102.
(NOTES 1, 2 AND 3)
100.Net realized gain (loss) on:

103. Investment securities (17,088,634) 104.

105. Foreign currency contracts 8,465,389 106.

107. Foreign currency transactions 176,232 (8,447,013)

108.Change in net unrealized appreciation (depreciation) 109. 110.
on:

111. Investment securities 29,714,624 112.

113. Foreign currency contracts (5,823,894) 23,890,730

114.NET GAIN (LOSS) 115. 15,443,717

116.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM 117. $ 47,461,928
OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C> <C>
YEAR ENDED TWO MONTH YEAR ENDED
DECEMBER 31, PERIOD ENDED OCTOBER 31,
1993 DECEMBER 31, 1992
1992

INCREASE (DECREASE) IN NET ASSETS

118.Operations $ 32,018,211 $ 8,126,054 $ 38,756,712
Net investment income

119. Net realized gain (loss) on (8,447,013) 3,287,861 (16,023,720)
investments

120. Change in net unrealized 23,890,730 (12,461,165) (7,631,729)
appreciation
(depreciation) on investments

121. 47,461,928 (1,047,250) 15,101,263
NET INCREASE (DECREASE) IN NET
ASSETS
RESULTING FROM OPERATIONS

122.Distributions to shareholders

123.From net investment income (21,723,094) (6,086,464) (32,109,150)

124.In excess of net investment income (5,275,639) - -

125. TOTAL DISTRIBUTIONS (26,998,733) (6,086,464) (32,109,150)

126.Share transactions 244,787,159 38,446,142 1,156,316,627
Net proceeds from sales of shares

127. Reinvestment of distributions from 23,206,212 4,931,388 27,808,282
net
investment income

128. Cost of shares redeemed (324,700,962) (225,845,601) (562,987,710)

129. (56,707,591) (182,468,071) (621,137,199)
Net increase (decrease) in net assets
resulting from share transactions

130. (36,244,396) (189,601,785) 604,129,312
TOTAL INCREASE (DECREASE) IN NET
ASSETS

NET ASSETS 131. 132. 133.

134. Beginning of period 458,845,966 648,447,751 44,318,439

135. $ 422,601,570 $ 458,845,966 $ 648,447,751
End of period (including under (over)
distribution of net investment income
of $(3,288,856), $8,700,435
and $6,660,845 respectively)

OTHER INFORMATION 137. 138. 139.
136.Shares

140. Sold 24,404,726 3,952,074 115,938,949

141. Issued in reinvestment of 2,318,125 508,846 2,801,913
distributions
from net investment income

142. Redeemed (32,640,159) (23,265,233) (56,973,558)

143. Net increase (decrease) (5,917,308) (18,804,313) 61,767,304

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
144. YEAR ENDED TWO MONTH YEAR ENDED OCTOBER 4, 1991
DECEMBER 31, PERIOD ENDED OCTOBER 31, (COMMENCEMENT
DECEMBER 31, OF OPERATIONS) TO
OCTOBER 31,

145. 1993 1992 1992 1991

146. 147. 148. 149.

150.SELECTED PER-SHARE DATA

151.Net asset value, beginning $ 9.680 $ 9.800 $ 10.040 $ 10.000
of period

152.Income from Investment .564 .191 .835 .061
Operations
Net investment income

153. Net realized and .621 (.203) (.338) .037
unrealized
gain (loss) on investments

154. Total from investment 1.185 (.012) .497 .098
operations

155.Less Distributions (.543) (.108) (.737) (.058)
From net investment income

156. In excess of net investment (.132) - - -
income

157. Total distributions (.675) (.108) (.737) (.058)

158.Net asset value, end of $ 10.190 $ 9.680 $ 9.800 $ 10.040
period

159.TOTAL RETURN (dagger)(double dagger) 12.59% (.12)% 5.10% .98%

160.RATIOS AND SUPPLEMENTAL
DATA

161.Net assets, end of period $ 423 $ 459 $ 648 $ 44
(in millions)

162.Ratio of expenses to average 1.00% 1.20%* 1.09 1.00%*
net assets

163.Ratio of expenses to average 1.00% 1.23%* 1.09 2.87%*
net assets before expense
reductions

164.Ratio of net investment 8.00% 8.63%* 9.04 9.07%*
income to average net assets

165.Portfolio turnover rate 160% 117%* 154 62%*

</TABLE>

* ANNUALIZED
(dagger) TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
(double dagger) THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN.
NOTES TO FINANCIAL STATEMENTS
For the period ended December 31, 1993

1. SIGNIFICANT ACCOUNTING
POLICIES.
Fidelity Short-Term World Income Fund (the fund) is a fund of Fidelity
Investment Trust (the trust) and is authorized to issue an unlimited number
of shares. The trust is registered under the Investment Company Act of
1940, as amended (the 1940 Act), as an open-end management investment
company organized as a Massachusetts business trust. The following
summarizes the significant accounting policies of the fund:
SECURITY VALUATION. Securities for which quotations are readily available
are valued at the last sale price, or if no sale price, at the closing bid
price in the principal market in which such securities are normally traded.
Securities (including restricted securities) for which quotations are not
readily available are valued primarily using dealer-supplied valuations or
at their fair value as determined in good faith under consistently applied
procedures under the general supervision of the Board of Trustees.
Short-term securities maturing within sixty days 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, other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the current exchange rate. Purchases and sales of securities,
income receipts and expense payments are translated into U.S. dollars at
the exchange rate on the dates of the transactions.
It is not practical to identify the portion of each amount shown in the
fund's Statement of Operations under the caption "Realized and Unrealized
Gain (Loss) on Investments" that arises from changes in foreign currency
exchange rates. Investment income includes net realized and unrealized
currency gains and losses recognized between accrual and payment dates.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes all of its taxable income for its fiscal
year. The schedule of investments includes information regarding income
taxes under the caption "Income Tax Information."
INVESTMENT INCOME. Interest income, which includes accretion of original
issue discount, is accrued as earned. Investment income is recorded net of
foreign taxes withheld where recovery of such taxes is not assured.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are declared daily and paid
monthly from net interest income. Distributions from realized gains, if
any, are recorded on the ex-dividend date.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
foreign currency transactions, market discount and losses deferred due to
wash sales. Permanent book and tax differences relating to shareholder
distributions will result in reclassifications to paid in capital.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
CHANGE IN ACCOUNTING FOR DISTRIBUTIONS TO SHAREHOLDERS. Effective January
1, 1993, the fund adopted Statement of Position 93-2: Determination,
Disclosure, and Financial Statement Presentation of Income, Capital Gain,
and Return of Capital Distributions by Investment Companies. As a result,
the fund changed the classification of distributions to shareholders to
better disclose the differences between financial statement amounts and
distributions determined in accordance with income tax regulations.
Accordingly, amounts as of December 31, 1992 have been reclassified to
reflect a decrease in paid in capital of $2,763,265 , a decrease in
undistributed net interest income of $7,186,738 and a decrease in
accumulated net realized loss on investments of $9,950,003.
2. OPERATING POLICIES.
FORWARD FOREIGN CURRENCY CONTRACTS. The fund may enter into forward foreign
currency contracts. These contracts involve market risk in excess of the
amount reflected in the fund's Statement of Assets and Liabilities. The
face or contract amount in U.S. dollars reflects the total exposure the
fund has in that particular currency contract. The U.S. dollar value of
forward foreign currency contracts is determined using forward currency
exchange rates supplied by a quotation service. Losses may arise due to
changes in the value of the foreign currency or if the counterparty does
not perform under the contract.
Purchases and sales of forward foreign currency contracts having the same
settlement date and broker are offset and presented net on the Statement of
Assets and Liabilities. Gain (loss) on the purchase or sale of forward
foreign currency contracts having the same settlement date and broker is
recognized on the date of offset, otherwise gain (loss) is recognized on
settlement date.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. The fund's investment
adviser, Fidelity Management & Research Company (FMR), is responsible
for determining that the value of these underlying securities remains at
least equal to the resale price.
2. OPERATING POLICIES -
CONTINUED
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other registered
investment companies having management contracts with FMR, may transfer
uninvested cash balances into a joint trading account. These balances are
invested in one or more repurchase agreements that are collateralized by
U.S. Treasury or Federal Agency obligations.
INDEXED SECURITIES. The fund may invest in indexed securities whose value
is linked either directly or inversely to changes in foreign currencies,
interest rates, commodities, indices, or other reference instruments.
Indexed securities may be more volatile than the reference instrument
itself, but any loss is limited to the amount of the original investment.
RESTRICTED SECURITIES. The fund is permitted to invest in privately placed
restricted securities. These securities may be resold in transactions
exempt from registration or to the public if the securities are registered.
Disposal of these securities may involve time-consuming negotiations and
expense, and prompt sale at an acceptable price may be difficult. At the
end of the period, restricted securities (excluding 144A issues) amounted
to $29,203,956 or 6.9% of net assets.
3. PURCHASES AND SALES OF
INVESTMENTS.
Purchases and sales of securities, other
than short-term securities, aggregated $511,713,786 and $502,643,241,
respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly
fee that is calculated on the basis of a group fee rate plus a fixed
individual fund fee rate applied to the average net assets of the fund. The
group fee rate is the weighted average of a series of rates ranging from
.1325% to .37% and is based on the monthly average net assets of all the
mutual funds advised by FMR. The annual individual fund fee rate is .45%.
For the period, the management fee was equivalent to an annual rate of .62%
of average net assets.
The Board of Trustees approved a new group fee rate schedule with rates
ranging from .2850% to .5200%. Effective November 1, 1993, FMR has
voluntarily agreed to implement this new group fee rate schedule as it
results in the same or a lower management fee.
SUB-ADVISER FEE. FMR, on behalf of the fund, entered into sub-advisory
agreements with affiliates of FMR. In addition, one of the sub-advisers,
Fidelity International Investment Advisors (FIIA), entered into a
sub-advisory agreement with its subsidiary, Fidelity International
Investment Advisors (U.K.) Limited (FIIAL U.K.). Under the sub-advisory
arrangements, FMR may receive investment advice and research services and
may grant the sub-advisers investment management authority to buy and sell
securities. FMR pays its sub-advisers either a portion of its management
fee or a fee based on costs incurred for these services. FIIA pays FIIAL
U.K. a fee based on costs incurred for either service.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
DISTRIBUTION AND SERVICE PLAN. Pursuant to the Distribution and Service
Plan (the Plan), and in accordance with Rule 12b-1 of the 1940 Act, FMR or
the fund's distributor, Fidelity Distributors Corporation (FDC), an
affiliate of FMR, may use their resources to pay administrative and
promotional expenses related to the sale of the fund's shares. Subject to
the approval of the Board of Trustees, the Plan also authorizes payments to
third parties that assist in the sale of the fund's shares or render
shareholder support services. FMR or FDC has informed the fund that
payments made to third parties under the Plan amounted to $1,763 for the
period.
TRANSFER AGENT FEE. Fidelity Service Co. (FSC), an affiliate of FMR, is the
fund's transfer, dividend disbursing and shareholder servicing agent. FSC
receives fees based on the type, size, number of accounts and the number of
transactions made by shareholders. FSC pays for typesetting, printing and
mailing of all shareholder reports, except proxy statements.
ACCOUNTING FEE. FSC maintains the fund's accounting records. The fee is
based on the level of average net assets for the month plus out-of-pocket
expenses.
5. BANK BORROWINGS.
The fund is permitted to have bank borrowings for temporary or emergency
purposes to fund shareholder redemptions. The fund has established
borrowing arrangements with certain banks. Under the most restrictive
arrangement, the fund must pledge to the bank securities having a market
value in excess of 220% of the total bank borrowings. The interest rate on
the borrowings is the bank's base rate, as revised from time to time. The
maximum loan and the average daily loan balances during the periods for
which loans were outstanding amounted to $14,993,000 and $5,533,773,
respectively. The weighted average interest rate was 3.73%.
REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees of Fidelity Investment Trust and the Shareholders of
Fidelity Short-Term World Income Fund:
We have audited the accompanying statement of assets and liabilities of
Fidelity Investment Trust: Fidelity Short-Term World Income Fund, including
the schedule of portfolio investments, as of December 31, 1993, and the
related statement of operations for the year then ended, the statement of
changes in net assets for the year then ended, for the two month period
ended December 31, 1992, and for the year ended October 31, 1992, and the
financial highlights for the year then ended, for the two month period
ended December 31, 1992, for the year ended October 31, 1992 and for the
period October 4, 1991 (commencement of operations) to December 31, 1991.
These financial statements and financial highlights are the responsibility
of the Fund's management. Our responsibility is to express an opinion on
these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1993 by correspondence with the
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Investment Trust: Fidelity Short-Term World Income Fund, as of
December 31, 1993, the results of its operations for the year then ended,
the changes in its net assets for the year then ended, for the two month
period ended December 31, 1992, and for the year ended October 31, 1992,
and the financial highlights for the year then ended, for the two month
period ended December 31, 1992, for the year ended October 31, 1992 and for
the period October 4, 1991 (commencement of operations) to December 31,
1991, in conformity with generally accepted accounting principles.
COOPERS & LYBRAND
Boston, Massachusetts
February 4, 1994
TO CALL FIDELITY

FOR FUND INFORMATION AND QUOTES
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you call. If you forget your PIN, please
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HISTORICAL AND
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(LETTER_GRAPHIC)(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 2269
Boston, MA 02107-2269
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Fidelity Investments
P.O. Box 30280
Salt Lake City, UT 84130-0280
(LETTER_GRAPHIC)(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
Additional Payments
P.O. Box 2656
Boston, MA 02293-0656
Fidelity Investments
Additional Payments
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Dallas, TX 75262-0024
Fidelity Investments
Additional Payments
P.O. Box 31455
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OVERNIGHT EXPRESS
Fidelity Investments
Additional Payments
World Trade Center
164 Northern Avenue
Boston, MA 02210
SELLING SHARES
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P.O. Box 193
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Fidelity Investments
P.O. Box 660602
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Fidelity Investments
P.O. Box 30281
Salt Lake City, UT 84130-0281
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions
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Fidelity Investments
P.O. Box 193
Boston, MA 02101-0193
Fidelity Investments
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Dallas, TX 75266-0602
(LETTER_GRAPHIC)(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 620024
Dallas, TX 75262-0024
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
INVESTMENT ADVISER
Fidelity Management & Research
Company
Boston, MA
INVESTMENT SUB-ADVISERS
Fidelity Management & Research
(U.K.) Inc. London, England
Fidelity Management & Research
(Far East) Inc. Tokyo, Japan
Fidelity International Investment
Advisors
Fidelity International Investment
Advisors (U.K.) Limited
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Judy Pagliuca, Vice President
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Arthur S. Loring, Secretary
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
CUSTODIAN
Brown Brothers Harriman & Co.
Boston, MA
FIDELITY'S TAXABLE BOND FUNDS
Capital & Income Fund
Ginnie Mae Portfolio
Global Bond Fund
Government Securities Fund
Intermediate Bond Fund
Investment Grade Bond Fund
Mortgage Securities Portfolio
New Markets Income Fund
Short-Intermediate Government Fund
Short-Term Bond Portfolio
Short-Term World Income Fund
Spartan(Registered trademark) Ginnie Mae Fund
Spartan Government Income Fund
Spartan High Income Fund
Spartan Investment Grade Bond Fund
Spartan Limited Maturity
Government Fund
Spartan Long-Term Government Bond
Fund
Spartan Short-Intermediate
Government Fund
Spartan Short-Term Income Fund
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)

* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE

(2_FIDELITY_LOGOS)FIDELITY

SHORT-TERM WORLD INCOME
FUND
ANNUAL REPORT
DECEMBER 31, 1993
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on minimizing taxes.

PERFORMANCE 4 How the fund has done over time.

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

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

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

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

NOTES 26 Footnotes to the financial statements.

REPORT OF INDEPENDENT 31 The auditor's opinion.
ACCOUNTANTS

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each figure
includes changes in a fund's share price, as well as reinvestment of any
dividends (or income) and capital gains (the profits the fund earns when it
sells bonds that have grown in value). You can also look at the fund's
income.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1993 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Global Bond 21.91% 73.92% 115.87%

Salomon Brothers World
Government Bond Index 13.27% 61.81% n/a

Average General World Income Fund 17.03% 64.86% n/a

Consumer Price Index 2.75% 21.00% 31.95%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one year, five years or since the fund
started on December 30, 1986. For example, if you had invested $1,000 in a
fund that had a 5% return over the past year, you would have $1,050. You
can compare these figures to the performance of the Salomon Brothers World
Government Bond Index - a widely used world government bond indicator. You
can also compare them to the average general world income fund, which
reflects the performance of 91 funds tracked by Lipper Analytical Services.
Both benchmarks include reinvested dividends and capital gains, if any, and
exclude sales charges. Comparing the fund's performance to the consumer
price index helps show how your fund did compared to inflation. (The
periods covered by the CPI numbers are the closest available match to those
covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1993 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Global Bond 21.91% 11.70% 11.60%

Salomon Brothers World
Government Bond Index 13.27% 10.10% n/a

Average General World Income Fund 17.03% 10.45% n/a

Consumer Price Index 2.75% 3.89% 4.04%

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
Global Bond SB World Govt Bond
12/31/86 10000.00 10000.00
01/31/87 10311.24 10300.00
02/28/87 10451.57 10460.68
03/31/87 10698.66 10702.32
04/30/87 10786.19 10825.40
05/31/87 10625.67 10718.23
06/30/87 10585.26 10632.48
07/31/87 10339.12 10419.83
08/31/87 10556.93 10577.17
09/30/87 10392.69 10279.95
10/31/87 10975.54 10972.82
11/30/87 11449.60 11354.68
12/31/87 11913.70 11840.66
01/31/88 11584.24 11776.72
02/29/88 11669.26 11879.17
03/31/88 11956.21 12091.81
04/30/88 11945.58 12032.56
05/31/88 11892.44 11919.45
06/30/88 11764.91 11659.61
07/31/88 11775.54 11588.49
08/31/88 11690.51 11458.70
09/30/88 11828.67 11754.33
10/31/88 12190.02 12297.38
11/30/88 12413.20 12485.53
12/31/88 12350.33 12358.18
01/31/89 12315.77 12177.75
02/28/89 12212.08 12186.27
03/31/89 12177.52 12016.88
04/30/89 12338.81 12175.51
05/31/89 12131.43 11918.60
06/30/89 12384.89 12158.17
07/31/89 12788.12 12712.58
08/31/89 12603.79 12285.44
09/30/89 12753.56 12517.63
10/31/89 12926.37 12622.78
11/30/89 13064.62 12737.65
12/31/89 13329.61 12894.32
01/31/90 13293.51 12724.12
02/28/90 13125.09 12528.16
03/31/90 13281.48 12404.14
04/30/90 13281.48 12365.68
05/31/90 13461.94 12777.46
06/30/90 13750.67 13012.56
07/31/90 14231.88 13419.86
08/31/90 14147.67 13315.18
09/30/90 14328.12 13462.98
10/31/90 14664.97 14064.78

11/30/90 14821.37 14298.25
12/31/90 14966.03 14439.80
01/31/91 15294.81 14800.80
02/28/91 15439.47 14805.24
03/31/91 15229.05 14267.81
04/30/91 15439.47 14487.53
05/31/91 15623.59 14468.70
06/30/91 15439.47 14318.23
07/31/91 15597.50 14624.64
08/31/91 15744.39 14908.35
09/30/91 16105.49 15491.27
10/31/91 16323.50 15653.93
11/30/91 16241.75 15899.70
12/31/91 16877.45 16726.48
01/31/92 16707.26 16430.42
02/29/92 16778.17 16338.41
03/31/92 16749.99 16165.22
04/30/92 16977.69 16280.00
05/31/92 17290.77 16779.79
06/30/92 17505.13 17249.63
07/31/92 17767.47 17651.54
08/31/92 18025.93 18145.79
09/30/92 17775.02 18327.24
10/31/92 17659.47 17828.74
11/30/92 17394.34 17545.27
12/31/92 17619.56 17650.54
01/31/93 17823.11 17959.42
02/28/93 18097.55 18313.22
03/31/93 18496.24 18595.25
04/30/93 18672.13 18987.61
05/31/93 19015.36 19177.48
06/30/93 19397.12 19137.21
07/31/93 19692.29 19190.79
08/31/93 20189.75 19768.44
09/30/93 20304.83 20003.68
10/31/93 20830.81 19969.67
11/30/93 20764.50 19827.89
12/31/93 21479.39 19996.43

$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity
Global Bond Fund on December 31, 1986, shortly after the fund started. As
the chart shows, by December 31, 1993, the value of your investment would
have grown to $21,479 - a 114.79% increase on your initial investment. For
comparison, look at how the Salomon Brothers World Government Bond Index
did over the same period. With dividends reinvested, the same $10,000 would
have grown to $19,996 - a 99.96% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is no
guarantee of how it will do
tomorrow. Bond prices, for
example, move in the opposite
direction of interest rates. In
turn, the share price, return, and
yield of a fund that invests in
bonds will vary. That means if
you sell your shares during a
market downturn, you might
lose money. But if you can ride
out the market's ups and
downs, you may have a gain.
(checkmark)
DIVIDENDS AND YIELD
PERIODS ENDED DECEMBER 31, 1993 PAST 30 PAST 6 PAST 1
DAYS MONTHS YEAR

Dividends per share n/a 28.49(cents) 62.88(cents)

Annualized dividend rate n/a 4.58% 5.25%

Annualized yield 6.21% n/a n/a

DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on an average share price of $12.33 over
the past six months and $11.97 over the past year, you can compare the
fund's income over these two periods. The 30-day annualized YIELD is a
standard formula for all funds based on the yields of the bonds in the
fund, averaged over the past 30 days. This figure shows you the yield
characteristics of the fund's investments at the end of the period and
helps you compare funds from different companies on an equal basis. It does
not reflect the costs of hedging and other currency gains and losses.
FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
Most all international bond markets
richly rewarded investors in 1993. In
general, returns in overseas markets
easily outpaced those in the United
States. Falling interest rates and low
inflation fueled strong returns in both
developed nations and, more notably,
in emerging markets. For example, in
Europe and Japan, weak economic
environments led rates to drop, which
benefited bond investors. The passage
of the North American Free Trade
Agreement in November boosted
interest and bettered returns in Latin
American countries, many of which
were already having a strong year. The
Salomon Brothers World Government
Bond Index - which measures bond
market performance in developed
nations and includes U.S. issues -
rose 13.27% for the year. That figure
was dwarfed by the J.P. Morgan
Emerging Markets Bond Index, which
was up 44.17% in 1993. For
comparison, the Lehman Brothers
Aggregate Bond Index - a broad
measure of taxable bonds in the U.S.
market - returned 9.75% for the year.
Though providing returns that
appeared weak compared to those in
overseas markets, the U.S. bond market
posted relatively strong numbers on a
historical basis. Falling interest rates
through most of the year fueled gains.
The yield on the benchmark 30-year
Treasury bond hit a three decade low in
mid-October, yielding 5.79%. By
year-end, mild inflation fears, fueled by
a strengthening economy, had pushed
up the yield on the 30-year bond to
6.35%. This slightly dampened overall
1993 results for U.S. bond investors.
An interview with Jonathan Kelly, Portfolio Manager of Fidelity Global Bond
Fund
Q. JONATHAN, ALTHOUGH YOU JUST STARTED RUNNING THE FUND LAST OCTOBER, CAN
YOU REVIEW ITS PERFORMANCE FOR 1993?
A. Sure. The total return for the year ended December 31, 1993 was 21.91%.
The average general world income fund had a total return during the same
period of 17.03%, according to Lipper Analytical Services, while the
Salomon Brothers World Government Bond Index was up 13.27%.
Q. WHAT BOOSTED PERFORMANCE?
A. There were three main factors. First was the fund's stake in European
bonds, which averaged about 40% during the period. As interest rates fell
across Europe, bond prices across the continent rose between 20% and 30%
when measured in local currency. In some cases, those currencies declined
relative to the dollar, which made hedging necessary to preserve gains. But
nearly every country provided attractive returns, including traditionally
high-yielding countries - Italy, Spain and Sweden - and so-called core
markets with their more stable currencies: Germany, France and Denmark.
Q. WHAT ELSE HELPED BESIDES EUROPE?
A. The second most important factor was the fund's average 30% stake in
emerging markets, mainly Mexico and Argentina. During the course of 1993,
Argentina surpassed Mexico as the fund's primary focus in Latin America.
Both countries appear to be on the right track in terms of fiscal and
monetary policies. But because Argentina is still much cheaper than Mexico,
the potential rewards could be that much greater. In both countries, I
invested in local currency instruments, which tend to be short-term issues,
as well as so-called Brady Bonds. Brady Bonds are long-term,
dollar-denominated and backed by the U.S. government.
Q. AND THE THIRD FACTOR?
A. Third would be a type of structured notes, which are listed among the
fund's investments under "indexed securities." They totaled about 7.5% of
the fund's investments by the end of December. Indexed securities are like
customized bonds. The most common variety in the fund have been designed to
take advantage of falling interest rates in Europe; specifically the
possibility that short-term interest rates in countries like Sweden,
Finland and Italy may fall more dramatically than long-term rates. I might
have just bought short-term bonds, but then the potential for price gains
would have been negligible. Instead, I bought indexed securities designed
to produce a return tied to changes in short-term interest rates but with
the added volatility of a longer-term bond. These are pure interest-rate
bets, fully hedged to minimize the effect of currency fluctuations.
Q. ANY REGRETS THIS PERIOD?
A. Very few. Bonds performed so well in countries around the world during
1993 that it was hard to do anything wrong. We did experience some
turbulence during the first two weeks in November, caused by uncertainty
over the prospects of the North American Free Trade Agreement (NAFTA).
However, because I believed strongly all along that NAFTA would pass, I
preserved the fund's Latin American exposure. Once NAFTA passed, the fund
recovered, and later rode the wave of post-NAFTA euphoria. With the benefit
of hindsight, I might have lightened up in Latin America prior to the vote
to avoid the dip in the fund's share price.
Q. YOU'VE ESTABLISHED A POSITION IN NEW ZEALAND IN RECENT MONTHS. WHAT'S
THE STORY THERE?
A. New Zealand may be one of the most exciting bond markets in the world
today. Uncertainty surrounding last fall's national elections led to a
sharp selloff of both currency and bonds. Immediately after the election,
the 10-year bond was yielding 6.4%; this in a country with 1.3% inflation
and a strong central bank determined to keep inflation low. Since then, the
value of the fund's 6.7% stake in New Zealand bonds has risen as interest
rates have fallen more than half a percentage point and the currency has
rallied.
Q. WHAT'S YOUR OUTLOOK FOR THE GLOBAL BOND MARKET IN 1994?
A. It's positive. In Europe, real interest rates - interest minus inflation
- - remain high. With most major European economies still mired in recession,
chances are we'll see bond yields decline. It won't be as easy to make
money in Europe as it was last year; some countries will do better than
others. But in general, I think the European markets could continue to
produce strong, if not as spectacular, results in 1994. I feel the same way
about the emerging markets. NAFTA is behind us now, which is a plus.
Moreover, Mexico, which currently has a country rating of BB, may receive
an investment-grade rating of BBB before the year is over. That would open
the way for new money to invest in Mexico that can't invest there now,
which could strengthen prices. In other emerging markets - Argentina,
Malaysia, Indonesia - the trends still favor lower interest rates and
stronger currencies. But again, 1993 was a fantastic year; it will be hard
to match in 1994.
FUND FACTS
GOAL: high total return by
investing in debt securities
from around the world
START DATE: December 30, 1986
SIZE: as of December 31, 1993,
over $686 million
NEW MANAGER: Jonathan Kelly,
since October 1993; international
fixed-income assistant, Fidelity
Advisor Income and Growth
Portfolio, since May 1993, and
Fidelity International Growth
and Income Fund, since
December 1993; analyst,
international fixed-income and
foreign exchange, since 1991
(checkmark)
JONATHAN KELLY ON HEDGING
CURRENCIES:
"Generally, I try not to take a lot
of currency risk. For example, I
happen to believe that the
outlook for the dollar is quite
strong in 1994 relative to most
European currencies.
Continental Europe - and
Germany in particular - seems
unlikely to emerge from
recession, at least through the
first half of the year. Moreover,
interest rates could easily
continue falling across Europe.
Neither prospect bodes well for
the value of European
currencies. That's why I've
hedged more than two-thirds of
the fund's European
investments, and would consider
hedging the whole position if I
felt the dollar was set to make
another big move."
(bullet) At the end of December, 40%
of the fund's investments were
securities issued in Europe (or
indexed securities tied in one way
or another to European countries),
35% in Latin America and 5% in
Asia.
(bullet) The emphasis in Europe was
on French and Danish bonds.
France has kept inflation low by
pursuing a tight monetary
policy, despite the recession.
The fund selectively
emphasized Italy and Spain at
different times during the year.
DISTRIBUTIONS
The Board of Trustees of
Fidelity Global Bond Fund
voted to pay on February 7,
1994, to shareholders of record
at the opening of business on
February 4, 1994, a distribution
of $.02 derived from capital
gains realized from sales of
portfolio securities.
INVESTMENT CHANGES

<TABLE>
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(BY LOCATION OF ISSUER) % OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS
SIX MONTHS AGO

Argentina 20 16

Mexico 18 21

Denmark 9 3

Canada 7 1

United States 7 15

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TOP COUNTRIES ARE BASED ON THE LOCATION OF THE ISSUER OF EACH SECURITY,
INDICATING WHERE THE FUND IS EXPOSED TO POLITICAL AND CREDIT RISKS. THE
FUND'S LARGEST POSITION AS OF DECEMBER 31 WAS IN SECURITIES OF ARGENTINEAN
ISSUERS.
TOP INTEREST-RATE EXPOSURES AS OF DECEMBER 31, 1993
(ESTIMATED, BY COUNTRY) % OF FUND'S TOTAL % OF INTEREST-
INTEREST-RATE EXPOSURE RATE EXPOSURE
SIX MONTHS AGO

United States 29 44

France 17 11

Canada 11 1

Denmark 9 5

Finland 8 6

FIDELITY ESTIMATES INTEREST-RATE EXPOSURES BASED ON THE DURATION, OR
INTEREST-RATE SENSITIVITY, OF THE FUND'S HOLDINGS. AS OF DECEMBER 31, THE
FUND WAS MOST SENSITIVE TO INTEREST-RATE MOVEMENTS IN THE U.S., WHICH
ACCOUNTED FOR APPROXIMATELY 29% OF THE FUND'S INTEREST-RATE EXPOSURE.
TOP CURRENCY EXPOSURES AS OF DECEMBER 31, 1993
(ESTIMATED, BY CURRENCY) % OF FUND'S NET ASSETS % OF NET ASSETS
SIX MONTHS AGO

U.S. dollar 63 55

Malaysian ringgit 11 4

Danish krone 9 3

Indonesian rupiah 7 4

New Zealand dollar 7 2

ESTIMATED CURRENCY EXPOSURES INCLUDE THE IMPACT OF HEDGING, WHICH REDUCES
FOREIGN CURRENCY RISK AND INCREASES THE FUND'S U.S. DOLLAR POSITION. THE
MALAYSIAN RINGGIT, AT APPROXIMATELY 11% OF ASSETS, WAS THE FUND'S LARGEST
FOREIGN CURRENCY EXPOSURE AS OF DECEMBER 31.
INVESTMENTS DECEMBER 31, 1993

Showing Percentage of Total Value of Investments

CORPORATE BONDS - 10.6%
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (C) AMOUNT (A)
CONVERTIBLE BONDS - 1.5%
ARGENTINA - 0.4%
Alpargatas SAIC 9%, 3/15/98 (e) - $ 3,070,000 $ 2,931,850 020545AA
FRANCE - 0.5%
Alcatel Alsthom 6 1/2%, 1/1/00 - FRF 12,500 1,974,573 20436392
Promodes 5 1/2%, 1/1/00 - FRF 4,900 997,550 74699693
2,972,123
NEW ZEALAND - 0.1%
Brierley Investments Ltd. 9%, 6/30/98 - NZD 1,257,300 913,259 1090149A
PHILIPPINES - 0.4%
International Container Term Services, Inc.
unsecured 6%, 2/19/00 (e) - 1,800,000 2,718,000 459360AA
THAILAND - 0.1%
Asia Credit 3 3/4%, 11/17/03 (e) - 305,000 448,350 044909AA
TOTAL CONVERTIBLE BONDS 9,983,582
NONCONVERTIBLE BONDS - 9.1%
ARGENTINA - 1.8%
Alto Parana:
euro 12%, 3/4/95 - 1,000,000 980,000 021999AB
12%, 3/4/95 (e) - 1,000,000 980,000 021999AA
12%, 3/4/95 - 3,000,000 2,940,000 021999AE
Brid Sapic euro 11 3/4%, 2/24/97 - 3,000,000 3,120,000 107994AA
Invertrad SA 9 1/4%, 10/14/94 (e) - 2,100,000 2,094,750 46127RAA
Petrolera Argentina San Jorge SA secured
11%, 2/9/98 (e) - 1,500,000 1,563,750 71654PAA
11,678,500
CZECH REPUBLIC - 0.2%
Komercni Banka 17%, 5/3/98 (d)(f) - CSK 30,000,000 1,004,163 50499CAB
MEXICO - 5.4%
Bancomer SA 9%, 6/1/00 (e) - 4,000,000 4,300,000 059682AA
Controladors Comercial Mexicana SA de CV
euro 8 3/4%, 4/21/98 (e) - 750,000 788,437 21238AAA
CORPORATE BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (C) AMOUNT (A)
NONCONVERTIBLE BONDS - CONTINUED
MEXICO - CONTINUED
Empresas La Moderna SA 10 1/4%,
11/12/97 (e) - $ 2,000,000 $ 2,180,000 292449AA
First Mexican Acceptance Corp. euro
10 3/4%, 9/15/96 - 1,500,000 1,564,920 321998AA
Grupo Dina (Consorcio G):
10 1/2%, 11/18/97 (e) - 4,000,000 4,400,000 210996AA
euro 10 1/2%, 11/18/97 - 900,000 990,000 210996AB
Grupo Imsa SA de CV euro 8 3/4%, 7/7/98 (e) - 2,500,000 2,568,750
40048TAA
Nacional Financiera SA 9 3/8%,
7/15/02 (e) - 3,000,000 3,292,500 6295989A
Offshore Mexican Bond Ltd. secured new peso
linked 0%, 7/20/94 (e) - 4,020,000 5,231,025 676257AA
Tolmex SA de CV 8 3/8%, 11/1/03 Ba2 10,000,000 10,500,000 889557AA
35,815,632
THAILAND - 0.3%
Industrial Finance Corp. Thailand 7 1/2%,
12/2/98 - THB 50,000,000 1,967,470 457998AC
UNITED KINGDOM - 0.8%
Abbey National Treasury Services PLC 7 3/4%,
6/23/98 Aa2 GBP 1,250,000 1,961,641 010998AG
Hanson PLC 10 3/8%, 10/20/97 A1 GBP 1,000,000 1,678,610 411996EM
Leeds Permanent Building Society 7 3/8%,
5/6/98 Aa3 GBP 1,250,000 1,929,331 524992FV
5,569,582
UNITED STATES OF AMERICA - 0.6%
PDV America, Inc. gtd. 7 7/8%, 8/1/03 Baa3 3,650,000 3,636,312 69329RAC
TOTAL NONCONVERTIBLE BONDS 59,671,659
TOTAL CORPORATE BONDS
(Cost $65,385,692) 69,655,241
GOVERNMENT OBLIGATIONS - 75.3%
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (C) AMOUNT (A)
ARGENTINA - 17.8%
Argentina Republic:
Brady:
euro 4%, 3/31/23 B1 $ 55,000,000 $ 37,743,750 039995AD
4%, 3 /31/23 (e) - 2,212,000 1,517,985 0401149Y
4%, 3/31/23 (e) - 5,250,000 3,615,937 0401149G
BOCON:
3 1/4%, 4/1/01 (f) B1 50,539,247 43,797,312 039995AF
3.80%, 4/1/01 (f) - ARP 14,703,600 11,668,004 039995AH
3 1/4%, 9/1/02 (f) - 5,177,315 4,249,022 039995AM
3.80%, 4/1/07 (f) - ARP 20,991,655 14,310,628 039995AW
FRB 4.1875%, 3/31/05 (e)(f) - 458,511 402,344 0401149U
117,304,982
AUSTRIA - 1.9%
Austrian Government 7%, 1/20/03 - ATS 144,000,000 12,607,747 0525919D
BRAZIL - 6.0%
Brazil Federative Republic IDU euro 4.3125%,
1/1/01 (f) B2 38,000,000 31,587,500 1057569E
Siderurgica Brasileiras SA inflation indexed
6%, 8/15/99 - BRC 51,502,300 8,021,205 82599PAA
39,608,705
CANADA - 7.3%
Canadian Government 11.75%, 2/1/03 Aaa CAD 29,000,000 29,378,476
136992QX
Ontario Province 7 3/4%, 12/8/03 Aa2 CAD 25,000,000 19,699,452 6832349H
49,077,928
DENMARK - 8.7%
Denmark Government:
9%, 11/15/00 Aa1 DKK 118,000,000 20,266,087 2485059A
8%, 5/15/03 Aa1 DKK 159,800,000 26,586,693 249998AG
7%, 12/15/04 Aa1 DKK 68,000,000 10,705,029 249998AV
57,557,809
FRANCE - 6.2%
French Government:
Oat:
8 1/2%, 11/25/02 Aaa FRF 16,000,000 3,244,872 3517779U
8 1/2%, 4/25/03 Aaa FRF 27,500,000 5,610,113 351996AQ
GOVERNMENT OBLIGATIONS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (C) AMOUNT (A)
FRANCE - CONTINUED
French Government - continued
OAT - continued
8 1/2%, 10/25/19 Aaa FRF 43,000,000 $ 9,349,722 3517779Q
8 1/2%, 4/25/23 Aaa FRF 70,000,000 15,338,743 351996AC
Strips 4/25/23 Aaa FRF 280,000,000 7,455,308 351996BL
40,998,758
INDONESIA - 1.2%
Indonesian Bank (SBI):
0%, 4/28/94 (b) - IDR 13,000,000 5,951,741 351996BL
0%, 5/19/94 (b) - IDR 4,400,000 2,002,766 06099MAC
7,954,507
IRELAND - 3.2%
Ireland Government 9 1/4%, 7/11/03 Aa3 IEP 12,500,000 21,133,847
4626779H
ITALY - 1.0%
Italian Government 11%, 6/1/03 (b) - ITL 10,000,000 6,629,772 4626779H
MEXICO - 7.5%
Mexican Government:
Brady:
Par A, 6 1/4%, 12/31/19 Ba3 31,500,000 26,302,500 597998MM
Par B, 6 1/4%, 12/31/19 Ba3 10,550,000 8,809,250 597998PF
Par FF, 6.63%, 12/31/19 Ba2 FRF 77,000,000 10,602,299 597998VQ
Cetes, 3/10/94 - MXN 13,000,000 4,101,278 597998VH
49,815,327
MOROCCO - 1.6%
Morocco Trust 4.3125%, 1/3/09 (e)(f) - 13,000,000 10,513,750 617727AA
NETHERLANDS - 3.7%
Netherland Government 7 1/2%, 1/15/23 Aaa NLG 40,650,000 24,559,202
001994AP
NEW ZEALAND - 6.6%
New Zealand Government:
10%, 3/15/02 Aa3 NZD 6,000,000 4,252,410 6501629D
8%, 4/15/04 Aa3 NZD 60,000,000 39,002,988 6501629K
43,255,398
GOVERNMENT OBLIGATIONS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (C) AMOUNT (A)
UNITED KINGDOM - 2.6%
United Kingdom Treasury:
12%, 11/20/98 Aaa GBP 4,000,000 $ 7,440,388 9107689R
9 3/4%, 8/27/02 Aaa GBP 5,270,000 9,595,954 467991AR
17,036,342
TOTAL GOVERNMENT OBLIGATIONS
(Cost $469,668,702) 498,054,074
COMMON STOCKS - 0.5%
SHARES
MEXICO - 0.5%
Grupo Carso SA de CV Class A-1 (h) 310,800 3,392,183 40099594
Mexico Value Recovery rights 6/30/03 (h) 31,025,000 311 59304893
TOTAL COMMON STOCKS
(Cost $2,143,726) 3,392,494
CONVERTIBLE PREFERRED STOCKS - 0.3%

NETHERLANDS - 0.3%
ABN-AMRO Holdings NV 6% (Cost $1,980,514) 52,000 1,910,586 00399194
OTHER SECURITIES - 8.6%
PRINCIPAL
AMOUNT (A)
COLLATERALIZED NOTES - 1.0%
MEXICO - 1.0%
Wilton Investments Ltd. sr. notes (collateralized by
Mexican govt. and U.S. govt. securities)
Series B, 0%, 3/4/94 (d) $ 6,600,000 6,542,448 972998AB
INDEXED SECURITIES - 7.5%
FINLAND - 0.4%
Finnish Export Credit note 3.5628%, 4/19/94
(inversely indexed to 1-year FIM HELIBOR
rate, multiplied by 10) 2,000,000 2,633,800 31899HAF
OTHER SECURITIES - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (A)
INDEXED SECURITIES - CONTINUED
UNITED KINGDOM - 0.6%
Barclays Bank PLC note 3 5/8%, 3/25/94
(inversely indexed to 1-year FIM HELIBOR rate,
multiplied by 10) $ 2,700,000 $ 3,574,260 06738C9S
UNITED STATES OF AMERICA - 6.5%
AIG Matched Funding Corp. note 2.8805%, 9/23/94
(coupon inversely indexed to HELIBOR and principal
indexed to value of 2-year Finnish securities,
both multiplied by 6) (f)(g) 1,800,000 1,938,420 012994AH
Bankers Trust Company note:
1.1386%, 11/14/94 (coupon inversely indexed
to HELIBOR and principal indexed to value
of 2-year Finnish securities, both
multiplied by 8) (f)(g) 600,000 619,320 0669919C
1.1125%, 11/16/94 (coupon inversely
indexed to HELIBOR and principal indexed to
value of 2-year Finnish securities, both
multiplied by 8) (f)(g) 1,000,000 1,032,200 0669919F
0%, 12/5/94 (coupon inversely indexed
to ITL LIBOR and principal indexed to value
of 2-year Italian securities, both
multiplied by 8) (g) 1,000,000 1,133,100 0669919G
3.282%, 12/5/94 (coupon inversely indexed
to value of HELIBOR and principal indexed to
value of 2-year Finnish securities, both
multiplied by 8) (f)(g) 1,200,000 1,227,600 0669919H
2.77%, 12/6/94 (coupon inversely indexed
to HELIBOR and principal indexed to value of
2-year Finnish securities, both
multiplied by 8) (f)(g) 600,000 614,280 0669919J
14.4375%, 7/15/94 (indexed to CSK denom.
CEZ a.s. bond 16 1/2%, 6/25/98) 1,000,000 1,024,700 0669917L
4.2075%, 8/31/94 (coupon inversely indexed
to HELIBOR and principal indexed to value of
2-year Finnish securities, both
multiplied by 6) (f)(g) 300,000 329,400 0669918F
3.09%, 12/7/94 (coupon inversely indexed to
HELIBOR and principal indexed to value of 2-year
Finnish securities, both multiplied by 8) (f)(g) 900,000 923,670
0669919K
3.3125%, 12/8/94 (coupon inversely indexed
to HELIBOR and principal indexed to value of
2-year Finnish securities, both multiplied by
8) (f)(g) 1,300,000 1,333,540 0669919M
OTHER SECURITIES - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (A)
INDEXED SECURITIES - CONTINUED
UNITED STATES OF AMERICA - CONTINUED
Bankers Trust Company note - continued
13.3825, 12/23/94 (coupon inversely indexed
to CAD Bankers' Acceptance rate and
principal indexed to value of 1-year
Canadian securities, both multiplied
by 13) (f)(g) $ 2,000,000 $ 2,063,800 0669919R
4.81%,12/29/94 (coupon inversely indexed
to HELIBOR and principal indexed to value of
2-year Finnish securities, both multiplied by
8) (f)(g) 1,000,000 998,400 0669919S
Bayerische Landesbank cert. of dep.:
4.9525%, 12/22/94 (coupon inversely
indexed to HELIBOR and principal indexed to
value of 2-year Finnish securities, both
multiplied by 8) (f)(g) 1,000,000 1,019,700 072999AP
6.0725%,12/22/94 (coupon inversely
indexed to HELIBOR and principal indexed
to value of 2-year Finnish securities, both
multiplied by 8) (f)(g) 2,500,000 2,635,750 072999AN
Citibank Nassau:
0%, 10/20/94 (coupon inversely indexed to
STIBOR and principal indexed to value of
2-year Swedish securities, both multiplied
by 9) (g) 3,000,000 3,178,500 223991AR
14.47625%, 10/20/94 (coupon inversely indexed
to CAD Bankers' Acceptance rate and principal
indexed to value of 3-year Canadian securities,
both multiplied by 5.5) (f)(g) 4,000,000 4,476,400 223991AS
0%, 10/25/94 (coupon inversely indexed to
STIBOR and principal indexed to value of
2-year Swedish securities, both multiplied
by 9) (g) 3,000,000 3,173,400 223991AT
0%, 11/4/94 (coupon inversely indexed to ITL
LIBOR and principal indexed to value of 2-year
Italian securities, both multiplied by 8) (g) 1,900,000 1,971,630
223991AW
0%, 11/10/94 (coupon inversely indexed to ITL
LIBOR and principal indexed to value of 2-year
Italian securities, both multiplied by 8) (g) 3,000,000 3,089,100
223991AY
0%, 11/17/94 (coupon inversely indexed to
LIBOR and principal indexed to value of
2-year Italian securities, both multiplied
by 8.5) (g) 2,000,000 2,146,200 223991BC
OTHER SECURITIES - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (A)
INDEXED SECURITIES - CONTINUED
UNITED STATES OF AMERICA - CONTINUED
Citibank Nassau - continued
0%, 12/5/94 (coupon inversely indexed to
LIBOR and principal indexed to value of
2-year Italian securities, both multiplied
by 8) (g) $ 1,000,000 $ 1,121,300 223991BG
0%, 12/23/94 (coupon inversely indexed to
STIBOR and principal indexed to value of
2-year Swedish securities, both
multiplied by 9) (g) 1,000,000 1,029,500 223991BM
16.1825%, 12/29/94 (coupon inversely
indexed to CAD Bankers Acceptance rate
and principal indexed to value of 1-year
Canadian securities, both multiplied
by 13) (f)(g) 1,000,000 1,042,600 223991BP
ITT Corp. note:
3.465%, 2/25/94 (inversely indexed to
1-year SEK swap rate, multiplied by 10) 2,000,000 2,412,400 4506799D
3.66%, 6/27/94 (inversely indexed to
1-year SEK swap rate, multiplied by 10) 1,300,000 1,422,070 4506799M
Sara Lee Corp. 0%, 11/4/94 (inversely indexed
to ITL LIBOR and principal indexed to 2-year
Italian securities, both multiplied by 8) (g) 1,100,000 1,146,200
8031119V
43,103,180
TOTAL INDEXED SECURITIES 49,311,240
PURCHASED BANK DEBT - 0.1%
COLOMBIA - 0.1%
Republic of Colombia amortizing loan
participation 6 3/8%, 1/31/98 (f) 800,385 760,366 1953259E
TOTAL OTHER SECURITIES
(Cost $52,494,141) 56,614,054
CERTIFICATES OF DEPOSIT - 1.1%
THAILAND - 1.1%
Siam Commercial Bank 7 1/4%, 11/29/96 THB 70,000,000 $ 2,751,714
7885109N
Thai Military Bank Ltd.:
8.52%, 9/20/96 THB 20,000,000 804,390 901999AD
8%, 10/21/96 THB 100,000,000 3,975,310 901999AA
TOTAL CERTIFICATES OF DEPOSIT
(Cost $7,600,536) 7,531,414
COMMERCIAL PAPER - 3.6%
PRINCIPAL VALUE (NOTE 1)
AMOUNT (A)
MEXICO - 3.6%
Bancomer 0%, 2/24/94 MXN 16,518,906 $ 5,228,452 05999KBG
Citibank Mexico 0%, 3/24/94 MXN 16,148,740 5,063,768 17699AAJ
National Financiera:
0%, 5/12/94 MXN 23,224,438 7,168,546 66299CAL
0%, 6/1/94 MXN 19,911,765 6,107,834 66299CAG
TOTAL COMMERCIAL PAPER
(Cost $23,412,288) 23,568,600
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $622,685,599) $ 660,726,463
FORWARD FOREIGN CURRENCY CONTRACTS
SETTLEMENT UNREALIZED
DATE(S) VALUE GAIN/(LOSS)
CONTRACTS TO BUY
10,842,973 CAD 1/20/94 $ 8,200,767 $ 93,664
101,604,500 DEM 1/20/94 to 2/16/94 58,282,245 (1,717,755)
202,714,122 DKK 2/9/94 29,713,763 (109,140)
666,985,978 ESP 1/14/94 4,647,592 (81,799)
116,950,000 FIM 2/16/94 20,111,469 (95,177)
228,763,750 FRF 1/27/94 38,542,198 (246,250)
1,544,100,000 GRD 2/28/94 6,011,079 (77,644)
85,663,000,000 IDR 1/26/94 to 6/30/94 39,877,609 102,333
15,263,025,000 ITL 2/3/94 to 3/8/94 8,823,298 (141,279)
2,533,552,370 JPY 1/24/94 22,672,184 (864,794)
223,505,200 MYR 1/31/94 to 9/30/94 82,756,351 (3,130,796)
80,227,129 SEK 1/20/94 to 2/25/94 9,583,748 (211,123)
7,962,500 SGD 3/21/94 4,943,871 (56,129)
TOTAL CONTRACTS TO BUY
(Payable amount $340,702,063) $ 334,166,174 $ (6,535,889)
THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 50.6%
FORWARD FOREIGN CURRENCY CONTRACTS - CONTINUED
SETTLEMENT UNREALIZED
DATE(S) VALUE GAIN/(LOSS)
CONTRACTS TO SELL
49,042,000 ATS 4/5/94 $ 3,998,353 $ 1,647
2,004,447,561 BEF 1/13/94 to 3/31/94 55,119,971 27,225
58,947,278 CAD 1/20/94 to 3/29/94 44,566,635 13,994
103,828,681 DEM 1/18/94 to 2/28/94 59,559,135 949,700
202,714,122 DKK 2/9/94 29,713,763 199,905
666,985,978 ESP 1/14/94 4,647,592 346,500
116,950,000 FIM 2/16/94 20,111,469 (111,469)
465,477,325 FRF 1/27/94 to 3/28/94 78,302,486 1,156,774
1,544,100,000 GRD 2/28/94 6,011,079 (11,079)
9,804,473 IEP 1/31/94 13,759,107 (17,063)
20,920,093,750 ITL 2/3/94 to 3/8/94 12,102,509 288,050
7,036,374,258 JPY 1/19/94 to 3/24/94 63,057,221 1,323,246
7,884,593 GBP 1/14/94 to 3/29/94 11,616,394 162,884
23,314,000 MYR 1/31/94 to 2/14/94 8,670,309 369,055
29,129,500 NLG 4/5/94 14,888,120 111,880
80,227,129 SEK 1/20/94 to 2/25/94 9,583,748 261,943
70,000,000 THB 1/25/94 2,740,250 23,271
TOTAL CONTRACTS TO SELL
(Receivable amount $443,544,604) $ 438,448,141 $ 5,096,463
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 66.4%
CURRENCY TYPE ABBREVIATIONS
ARP - Argentinean peso
ATS - Austrian schilling
BEF - Belgian franc
BRC - Brazilian cruzeiro
GBP - British pound
CAD - Canadian dollar
CSK - Czech koruna
DKK - Danish krone
NLG - Dutch guilder
FIM - Finnish markka
FRF - French franc
DEM - German Deutsche mark
GRD - Greek drachma
IDR - Indonesian rupiah
IEP - Irish pound
ITL - Italian lira
JPY - Japanese yen
MYR - Malaysian ringgit
MXN - Mexican peso
NZD - New Zealand dollar
SGD - Singapore dollar
ESP - Spanish peseta
SEK - Swedish krona
THB - Thai baht
USD - United States dollar
LEGEND
1. Principal amount is stated in United States dollars unless otherwise
noted.
2. Principal amount in thousands.
3. Standard & Poor's Corporation credit ratings are used in the absence
of a rating by Moody's Investors Service, Inc.
4. Restricted securities - investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on each holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
Komercni Banka 17%,
5/3/98 10/14/93 $ 1,040,657
Wilton Investments Ltd.
sr. notes (collateralized
by Mexican gov't. and
U.S. govt. securities)
Series B, 0%,
3/4/94 3/3/93 6,107,706

5. Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $49,547,428 or 7.2% of net
assets.
6. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
7. Inverse floating rate security is a security where the coupon is
inversely indexed to a floating interest rate multiplied by a specified
factor. If the floating rate is high enough, the coupon rate may be zero or
be a negative amount that is carried forward to reduce future interest
and/or principal payments. The price may be considerably more volatile than
the price of a comparable fixed rate security.
8. Non-income producing
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 39.2% AAA, AA, A 38.9%
Baa 0.6% BBB 0.0%
Ba 8.5% BB 3.5%
B 17.1% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
For some foreign government obligations, FMR has assigned the ratings of
the sovereign credit of the issuing government. The percentage not rated by
either S&P or Moody's amounted to 19.9% including long-term debt
categorized as other securities.
Non-rated securities considered to be Baa or better quality by FMR are 9.4%
of the fund's total investments.
INCOME TAX INFORMATION
At December 31, 1993, the aggregate cost of investment securities for
income tax purposes was $623,005,230. Net unrealized appreciation
aggregated $37,721,233, of which $39,214,535 related to appreciated
investment securities and $1,493,302 related to depreciated investment
securities.
The fund hereby designates $2,000,000 as a capital gain dividend for the
purpose of the dividend paid deduction.
At December 31, 1993, the fund was required to defer $3,940,000 of losses
on futures contracts, options and foreign currency transactions.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
DECEMBER 31, 1993

ASSETS 9. 10.

11.Investment in securities, at value (cost $622,685,599) 12. $ 660,726,463
(Notes 1 and 2) - See accompanying schedule

13.Long foreign currency contracts held, at value (cost 14. 334,166,174
$340,702,063) (Note 2)

15.Short foreign currency contracts (Note 2) $ (438,448,141) 16.
Contracts held, at value

17. Receivable for contracts held 443,544,604 5,096,463

18.Receivable for investments sold 19. 34,481,888

20.Receivable for fund shares sold 21. 3,620,162

22.Interest receivable 23. 13,752,933

24.Other receivables 25. 134,804

26. TOTAL ASSETS 27. 1,051,978,887

LIABILITIES 28. 29.

30.Payable to custodian bank 949,402 31.

32.Payable for foreign currency contracts held (Note 1) 340,702,063 33.

34.Payable for investments purchased 20,410,609 35.

36.Net payable for closed foreign currency contracts (Note 2) 422,282 37.

38.Payable for fund shares redeemed 1,417,225 39.

40.Dividends payable 1,013,277 41.

42.Accrued management fee 386,326 43.

44.Other payables and accrued expenses 426,038 45.

46. TOTAL LIABILITIES 47. 365,727,222

48.NET ASSETS 49. $ 686,251,665

50.Net Assets consist of (Note 1): 51. 52.

53.Paid in capital 54. $ 654,410,342

55.Distributions in excess of net investment income 56. (5,486,305)

57.Accumulated undistributed net realized gain (loss) on 58. 726,190
investments

59.Net unrealized appreciation (depreciation) on: 60. 61.

62. Investment securities 63. 38,040,864

64. Foreign currency contracts 65. (1,439,426)

66.NET ASSETS, for 54,410,932 shares outstanding 67. $ 686,251,665

68.NET ASSET VALUE, offering price and redemption price per 69. $12.61
share ($686,251,665 (divided by) 54,410,932 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED DECEMBER 31, 1993

INVESTMENT INCOME 71. $ 16,600
70.Dividends

72.Interest 73. 34,206,827

74.Foreign exchange gain (loss) 75. 601,542

76. 34,824,969

77.Less foreign taxes withheld 78. (245,761)

79. TOTAL INCOME 80. 34,579,208

EXPENSES 81. 82.

83.Management fee (Note 4) $ 3,097,304 84.

85.Transfer agent fees (Note 4) 1,091,926 86.

87.Accounting fees and expenses (Note 4) 255,949 88.

89.Non-interested trustees' compensation 2,658 90.

91.Custodian fees and expenses 382,013 92.

93.Registration fees 175,456 94.

95.Audit 69,741 96.

97.Legal 6,249 98.

99.Interest (Note 5) 7,303 100.

101.Miscellaneous 5,105 102.

103. TOTAL EXPENSES 104. 5,093,704

105.NET INVESTMENT INCOME 106. 29,485,504

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 108. 109.
(NOTES 1, 2 AND 3)
107.Net realized gain (loss) on:

110. Investment securities 12,747,307 111.

112. Foreign currency contracts (596,495) 113.

114. Foreign currency transactions (1,374,748) 115.

116. Written options 692,000 117.

118. Futures contracts (206,142) 11,261,922

119.Change in net unrealized appreciation (depreciation) on: 120. 121.

122. Investment securities 50,606,393 123.

124. Foreign currency contracts (4,282,440) 125.

126. Written options (248,816) 127.

128. Assets and liabilities denominated in foreign (189,424) 45,885,713
currencies

129.NET GAIN (LOSS) 130. 57,147,635

131.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM 132. $ 86,633,139
OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C> <C>
YEAR ENDED TWO MONTH YEAR ENDED
DECEMBER 31, PERIOD ENDED OCTOBER 31,
1993 DECEMBER 31, 1992
1992

INCREASE (DECREASE) IN NET ASSETS

133.Operations $ 29,485,504 $ 3,473,330 $ 20,251,049
Net investment income

134. Net realized gain (loss) on investments 11,261,922 2,233,829 (830,180)

135. Change in net unrealized appreciation 45,885,713 (6,815,456) (3,171,471)
(depreciation) on investments

136. 86,633,139 (1,108,297) 16,249,398
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS

137.Distributions to shareholders (22,241,596) (8,450,422) (22,178,081)
From net investment income

138. From net realized gain (11,261,922) (3,133,512) -

139. In excess of net realized gain (8,138,598) - -

140. (41,642,116) (11,583,934) (22,178,081)
TOTAL DISTRIBUTIONS

141.Share transactions 684,294,760 27,096,394 398,366,459
Net proceeds from sales of shares

142. Reinvestment of distributions 37,152,801 9,907,186 20,198,683

143. Cost of shares redeemed (359,391,059) (77,439,904) (240,386,472)

144. 362,056,502 (40,436,324) 178,178,670
Net increase (decrease) in net assets resulting
from share transactions

145. 407,047,525 (53,128,555) 172,249,987
TOTAL INCREASE (DECREASE) IN NET ASSETS

NET ASSETS 146. 147. 148.

149. Beginning of period 279,204,140 332,332,695 160,082,708

150. $ 686,251,665 $ 279,204,140 $ 332,332,695
End of period (including distributions in
excess of net investment income of
$5,486,305 and $2,041,681and $2,935,411,
respectively)

OTHER INFORMATION 152. 153. 154.
151.Shares

155. Sold 56,470,051 2,332,660 33,211,702

156. Issued in reinvestment of distributions 3,054,696 869,030 1,693,232

157. Redeemed (29,744,063) (6,669,796) (20,165,177)

158. Net increase (decrease) 29,780,684 (3,468,106) 14,739,757

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS YEAR ENDED TWO MONTH YEARS ENDED OCTOBER 31,
DECEMBER 31, PERIOD ENDED
DECEMBER 31,

159. 1993 1992 1992(double dagger) 1991 1990 1989

</TABLE>

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

161.Net asset value, beginning of period $ 11.340 $ 11.830 $ 11.980 $ 12.19 $ 11.22 $ 11.47

162.Income from Investment Operations

163. Net investment income .731 .145 .839 .74 .89(diamond) .82(diamond)

164. Net realized and unrealized gain (loss) on
investments 1.648 (.173) .110# .52 .57 (.17)

165. Total from investment operations 2.379 (.028) .949 1.26 1.46 .65

166.Less Distributions

167. From net investment income (.629) (.332) (1.099) (1.03) (.49) (.81)

168. From net realized gain (.280) (.130)** - (.44)** - (.09)**

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

170. Total distributions (1.109) (.462) (1.099) (1.47) (.49) (.90)

171.Net asset value, end of period $ 12.610 $ 11.340 $ 11.830 $ 11.98 $ 12.19 $ 11.22

172.TOTAL RETURN (dagger) 21.91% (.23)% 8.18% 11.31% 13.45% 6.04%
(pound)

173.RATIOS AND SUPPLEMENTAL DATA

174.Net assets, end of period (in millions) $ 686 $ 279 $ 332 $ 160 $ 126 $ 57

175.Ratio of expenses to average net assets 1.17% 1.37%* 1.23% 1.35% 1.40% 1.50%

176.Ratio of expenses to average net assets before
expense reductions 1.17% 1.37%* 1.23% 1.35% 1.40% 1.65%

177.Ratio of net investment income to average net assets 6.79% 6.92%* 8.02% 7.92% 7.82% 7.56%

178.Portfolio turnover rate 198% 142%* 81% 228% 154% 150%

</TABLE>

* ANNUALIZED ** INCLUDES AMOUNTS DISTRIBUTED FROM NET REALIZED GAINS ON
FOREIGN CURRENCY RELATED TRANSACTIONS TAXABLE AS ORDINARY INCOME. (dagger)
TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
(diamond) THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIOD SHOWN. (double dagger) EFFECTIVE JULY 1,
1992, DIVIDENDS FROM NET INVESTMENT INCOME WERE DECLARED DAILY AND PAID
MONTHLY. (pound) FOR THE PERIODS ENDED OCTOBER 31, 1990 AND 1989, NET
INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED USING AVERAGE SHARES
OUTSTANDING DURING THE YEAR. # THE AMOUNT SHOWN FOR A SHARE OUTSTANDING
DOES NOT CORRESPOND WITH THE AGGREGATE NET LOSS ON INVESTMENTS FOR THE
PERIOD ENDED DUE TO THE TIMING OF SALES AND REPURCHASES OF THE FUND IN
RELATION TO FLUCTUATING MARKET VALUES OF THE INVESTMENTS OF THE FUND.

25
ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS
For the period ended December 31, 1993

1. SIGNIFICANT ACCOUNTING
POLICIES.
Fidelity Global Bond Fund (the fund) is a fund of Fidelity Investment Trust
(the trust) and is authorized to issue an unlimited number of shares. The
trust is registered under the Investment Company Act of 1940, as amended
(the 1940 Act), as an open-end management investment company organized as a
Massachusetts business trust. The following summarizes the significant
accounting policies of the fund:
SECURITY VALUATION. Securities for which quotations are readily available
are valued at the last sale price, or if no sale price, at the closing bid
price in the principal market in which such securities are normally traded.
Securities (including restricted securities) for which quotations are not
readily available are valued primarily using dealer-supplied valuations or
at their fair value as determined in good faith under consistently applied
procedures under the general supervision of the Board of Trustees.
Short-term securities maturing within sixty days 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, other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the current exchange rate. Purchases and sales of securities,
income receipts and expense payments are translated into U.S. dollars at
the exchange rate on the dates of the transactions.
It is not practical to identify the portion of each amount shown in the
fund's Statement of Operations under the caption "Realized and Unrealized
Gain (Loss) on Investments" that arises from changes in foreign currency
exchange rates. Investment income includes net realized and unrealized
currency gains and losses recognized between accrual and payment dates.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes all of its taxable income for its fiscal
year. The schedule of investments includes information regarding income
taxes under the caption "Income Tax Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date,
except certain dividends from foreign securities where the ex-dividend date
may have passed, are recorded as soon as the fund is informed of the
ex-dividend date. Interest income, 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 not assured.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are declared daily and paid
monthly from net investment income. Distributions from realized gains, if
any, are recorded on the ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
futures and options transactions, foreign currency transactions, market
discount and losses deferred due to wash sales. Permanent book and tax
differences relating to shareholder distributions will result in
reclassifications to paid in capital.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
CHANGE IN ACCOUNTING FOR DISTRIBUTIONS TO SHAREHOLDERS. Effective January
1, 1993, the fund adopted Statement of Position 93-2: Determination,
Disclosure, and Financial Statement Presentation of Income, Capital Gain,
and Return of Capital Distributions by Investment Companies. As a result,
the fund changed the classification of distributions to shareholders to
better disclose the differences between financial statement amounts and
distributions determined in accordance with income tax regulations.
Accordingly, amounts as of December 31, 1992 have been reclassified to
reflect an increase in paid in capital of $706,680, an increase in
distributions in excess of net investment income of $2,954,786 and a
decrease in accumulated net realized loss on investments of $2,248,106.
2. OPERATING POLICIES.
FORWARD FOREIGN CURRENCY CONTRACTS. The fund may enter into forward foreign
currency contracts. These contracts involve market risk in excess of the
amount reflected in the fund's Statement of Assets and Liabilities. The
face or contract amount in U.S. dollars reflects the total exposure the
fund has in that particular currency contract. The U.S. dollar value of
forward foreign currency contracts is determined using forward currency
exchange rates supplied by a quotation service. Losses may arise due to
changes in the value of the foreign currency or if the counterparty does
not perform under the contract.
Purchases and sales of forward foreign currency contracts having the same
settlement date and broker are offset and presented net on the Statement of
Assets and Liabilities. Gain (loss) on the purchase or sale of forward
foreign currency contracts having the same settlement date and broker is
recognized on the date of offset, otherwise gain (loss) is recognized on
settlement date.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. The fund's investment
adviser,
2. OPERATING POLICIES -
CONTINUED
REPURCHASE AGREEMENTS - CONTINUED
Fidelity Management & Research Company (FMR), is responsible for
determining that the value of these underlying securities remains at least
equal to the resale price.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other registered
investment companies having management contracts with FMR, may transfer
uninvested cash balances into a joint trading account. These balances are
invested in one or more repurchase agreements that are collateralized by
U.S. Treasury or Federal Agency obligations.
FUTURES CONTRACTS AND OPTIONS. The fund may invest in futures contracts and
write options. These investments involve, to varying degrees, elements of
market risk and risks in excess of the amount recognized in the Statement
of Assets and Liabilities. The face or contract amounts reflect the extent
of the involvement the fund has in the particular classes of instruments.
Risks may be caused by an imperfect correlation between movements in the
price of the instruments and the price of the underlying securities and
interest rates. Risks also may arise if there is an illiquid secondary
market for the instruments, or due to the inability of counterparties to
perform.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Options traded
on an exchange are valued using the last sale price or, in the absence of a
sale, the last offering price. Options traded over-the-counter are valued
using dealer-supplied valuations.
INDEXED SECURITIES. The fund may invest in indexed securities whose value
is linked either directly or inversely to changes in foreign currencies,
interest rates, commodities, indices, or other reference instruments.
Indexed securities may be more volatile than the reference instrument
itself, but any loss is limited to the amount of the original investment.
RESTRICTED SECURITIES. The fund is permitted to invest in privately placed
restricted securities. These securities may be resold in transactions
exempt from registration or to the public if the securities are registered.
Disposal of these securities may involve time-consuming negotiations and
expense, and prompt sale at an acceptable price may be difficult. At the
end of the period, restricted securities (excluding 144A issues) amounted
to $7,546,611 or 1.1% of net assets.
3. PURCHASES AND SALES OF
INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $1,048,879,671 and $786,270,685, respectively.
The face value of futures contracts opened and closed amounted to
$6,318,531.
The following is a summary of the fund's written options activity:
SUMMARY OF WRITTEN OPTIONS
NUMBER OF AGGREGATE FACE VALUE
CONTRACTS OF CONTRACTS
Put Options on DEM:
Outstanding at December 31, 1992 - $ -
Contracts opened 1 20,000,000
Contracts closed (1) (20,000,000)
Outstanding at December 31, 1993 - $ -
Put Options on Argentine Collateralized Par Bonds:
Outstanding at December 31, 1992 (1) $ 16,000,000
Contracts opened - -
Contracts closed (1) (16,000,000)
Outstanding at December 31, 1993 - $ -
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly
fee that is calculated on the basis of a group fee rate plus a fixed
individual fund fee rate applied to the average net assets of the fund. The
group fee rate is the weighted average of a series of rates ranging from
.14% to .37% and is based on the monthly average net assets of all the
mutual funds advised by FMR. The annual individual fund fee rate is .55%.
For the period, the management fee was equivalent to an annual rate of
.71% of average net assets.
The Board of Trustees approved a new group fee rate schedule with rates
ranging from .1325% to .3700%. Effective November 1, 1993, FMR has
voluntarily agreed to implement this new group fee rate schedule as it
results in the same or a lower management fee.
SUB-ADVISER FEE. FMR, on behalf of the fund, entered into sub-advisory
agreements with affiliates of FMR. In addition, one of the sub-advisers,
Fidelity International Investment Advisors (FIIA), entered into a
sub-advisory agreement with its subsidiary, Fidelity International
Investment Advisors (U.K.) Limited (FIIAL U.K.). Under the sub-advisory
arrangements, FMR may receive investment advice and research services and
may grant the sub-advisers investment management authority to buy and sell
securities. FMR pays its sub-advisers
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
SUB-ADVISER FEE - CONTINUED
either a portion of its management fee or a fee based on costs incurred for
these services. FIIA pays FIIAL U.K. a fee based on costs incurred for
either service.
DISTRIBUTION AND SERVICE PLAN. Pursuant to the Distribution and Service
Plan (the Plan), and in accordance with Rule 12b-1 of the 1940 Act, FMR or
the fund's distributor, Fidelity Distributors Corporation (FDC), an
affiliate of FMR, may use their resources to pay administrative and
promotional expenses related to the sale of the fund's shares. Subject to
the approval of the Board of Trustees, the Plan also authorizes payments to
third parties that assist in the sale of the fund's shares or render
shareholder support services. FMR or FDC has informed the fund that
payments made to third parties under the Plan amounted to $16,923 for the
period.
TRANSFER AGENT FEE. Fidelity Service Co. (FSC), an affiliate of FMR, is the
fund's transfer, dividend disbursing and shareholder servicing agent. FSC
receives fees based on the type, size, number of accounts and the number of
transactions made by shareholders. FSC pays for typesetting, printing and
mailing of all shareholder reports, except proxy statements.
ACCOUNTING FEE. FSC maintains the fund's accounting records. The fee is
based on the level of average net assets for the month plus out-of-pocket
expenses.
5. BANK BORROWINGS.
The fund is permitted to have bank borrowings for temporary or emergency
purposes to fund shareholder redemptions. The fund has established
borrowing arrangements with certain banks. Under the most restrictive
arrangement, the fund must pledge to the bank securities having a market
value in excess of 220% of the total bank borrowings. The interest rate on
the borrowings is the bank's base rate, as revised from time to time. The
maximum loan and the average daily loan balances during the periods for
which loans were outstanding amounted to $10,955,000 and $5,171,786,
respectively. The weighted average interest rate was 3.63%.
REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees of Fidelity Investment Trust and the Shareholders of
Fidelity Global Bond Fund:
We have audited the accompanying statement of assets and liabilities of
Fidelity Investment Trust: Fidelity Global Bond Fund, including the
schedule of portfolio investments, as of December 31, 1993, and the related
statement of operations for the year then ended, the statement of changes
in net assets for the year then ended, for the two month period ended
December 31, 1992, and for the year ended October 31, 1992, and the
financial highlights for the year then ended, for the two month period
ended December 31, 1992 and for the four years ended October 31, 1992.
These financial statements and financial highlights are the responsibility
of the Fund's management. Our responsibility is to express an opinion on
these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1993 by correspondence with the
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Investment Trust: Fidelity Global Bond Fund, as of December 31,
1993, the results of its operations for the year then ended, the changes in
its net assets for the year then ended, for the two month period ended
December 31, 1992, and for the year ended October 31, 1992, and the
financial highlights for the year then ended, for the two month period
ended December 31, 1992 and for the four years ended October 31, 1992, in
conformity with generally accepted accounting principles.
COOPERS & LYBRAND
Boston, Massachusetts
February 4, 1994
INVESTMENT ADVISER
Fidelity Management & Research
Company
Boston, MA
INVESTMENT SUB-ADVISERS
Fidelity Management & Research
(U.K.) Inc. London, England
Fidelity Management & Research
(Far East) Inc. Tokyo, Japan
Fidelity International Investment
Advisors
Fidelity International Investment Advisors (U.K.) Limited
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Arthur S. Loring, Secretary
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
CUSTODIAN
The Chase Manhattan Bank, N.A.
New York, NY
FIDELITY'S TAXABLE BOND FUNDS
Capital & Income Fund
Ginnie Mae Portfolio
Global Bond Fund
Government Securities Fund
Intermediate Bond Fund
Investment Grade Bond Fund
Mortgage Securities Portfolio
New Markets Income Fund
Short-Intermediate Government Fund
Short-Term Bond Portfolio
Short-Term World Income Fund
Spartan(Registered trademark) Ginnie Mae Fund
Spartan Government Income Fund
Spartan High Income Fund
Spartan Investment Grade Bond Fund
Spartan Limited Maturity
Government Fund
Spartan Long-Term Government Bond
Fund
Spartan Short-Intermediate
Government Fund
Spartan Short-Term Income Fund
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)

(2_FIDELITY_LOGOS)FIDELITY

SHORT-TERM WORLD INCOME
FUND
ANNUAL REPORT
DECEMBER 31, 1993
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on minimizing taxes.

PERFORMANCE 4 How the fund has done over time.

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

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

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

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

NOTES 24 Footnotes to the financial statements.

REPORT OF INDEPENDENT 29 The auditor's opinion.
ACCOUNTANTS

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each figure
includes changes in a fund's share price, as well as reinvestment of any
dividends (or income) and capital gains (the profits the fund earns when it
sells investments that have grown in value). You can also look at the
fund's income.
CUMULATIVE TOTAL RETURNS
PERIOD ENDED DECEMBER 31, 1993 LIFE OF
FUND

New Markets Income 38.84%

J.P. Morgan Emerging Markets Bond Index n/a

Average General World Income Fund n/a

Consumer Price Index 1.25%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, since the fund began on May 4, 1993. You
can compare these figures to the J.P. Morgan Emerging Markets Bond Index -
a broad measure of bond performance in developing countries available at
month end. You can also compare them to the average general world income
fund, which reflects the performance of 91 funds tracked by Lipper
Analytical Services. Both benchmarks include reinvested dividends and
capital gains, if any, and exclude sales charges. (Neither comparison is
available as of the fund's exact start date. However, six-month and
one-year comparisons will appear in the fund's next report.) Comparing the
fund's performance to the consumer price index helps show how your fund did
compared to inflation.
AVERAGE ANNUAL TOTAL RETURNS
PERIOD ENDED DECEMBER 31, 1993 LIFE OF
FUND

New Markets Income 64.04%

J.P. Morgan Emerging Markets Bond Index n/a

Average General World Income Fund n/a

Consumer Price Index 1.87%

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year. Since the fund is less than a year old, the return
is an annualized number.
$10,000 OVER LIFE OF FUND
New Mkts Inc JPM Emerging Mkts
05/31/93 10000.00 10000.00
06/30/93 10397.83 10350.00
07/31/93 10924.43 10781.60
08/31/93 11248.31 10998.31
09/30/93 11606.79 11142.38
10/31/93 12523.78 12081.69
11/30/93 12661.09 11960.87
12/31/93 13478.16 12691.68
$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity New
Markets Income Fund on May 31, 1993, shortly after the fund started. As the
chart shows, by December 31, 1993, the value of your investment would have
grown to $13,478 - a 34.78% increase on your initial investment. For
comparison, look at how the J.P. Morgan Emerging Markets Bond Index did
over the same period. With dividends reinvested, the same $10,000 would
have grown to $12,692 - a 26.92% increase
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is no
guarantee of how it will do
tomorrow. Bond prices, for
example, move in the opposite
direction of interest rates. In
turn, the share price, return, and
yield of a fund that invests in
bonds will vary. That means if
you sell your shares during a
market downturn, you might
lose money. But if you can ride
out the market's ups and
downs, you may have a gain.
(checkmark)
INCOME
MAY 4, 1993
(START OF OPERATIONS)
TO DECEMBER 31,
1993

Income return 6.32%
Capital gain return 1.82%

Change in share price 30.70%
Total return 38.84%
INCOME returns, capital gain returns, and changes in share price are all
part of a bond fund's total return. An income return reflects the dividends
paid by the fund. A capital gain return reflects the amount paid by the
fund to shareholders based on the profits realized from selling bonds that
have grown in value. The returns assume the dividends or gains are
reinvested. Changes in the fund's share price include changes in the prices
of the fund's bonds and any capital gains the fund pays.
DIVIDENDS AND YIELD
PERIODS ENDED DECEMBER 31, 1993 PAST 30 PAST 6
DAYS MONTHS

Dividends per share n/a 41.94(cents)

Annualized dividend rate n/a 7.04%

Annualized yield 7.54% n/a

DIVIDENDS per share show the income paid by the fund for a set period. You
can annualize this number, based on an average share price of $11.82 over
the past six months. The 30-day annualized YIELD is a standard formula for
all funds based on the yields of the bonds in the fund, averaged over the
past 30 days. This figure shows you the yield characteristics of the fund's
investments at the end of the period. It also helps you compare funds from
different companies on an equal basis.
FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
Most international bond markets
richly rewarded investors in 1993,
easily outpacing U.S. bond markets.
Falling interest rates and low
inflation fueled strong returns in both
developed nations and, more notably,
in emerging markets. For example, in
Europe and Japan, weak economic
environments led rates to drop, which
benefited bond investors. The
passage of the North American Free
Trade Agreement in November
boosted returns in Latin American
countries, many of which were
already having a strong year. The
Salomon Brothers World
Government Bond Index - which
measures government bond market
performance in developed nations,
including the United States - rose
13.27% for the year. That figure was
dwarfed by the J.P. Morgan
Emerging Markets Bond Index,
which was up 44.17% in 1993. For
comparison, the Lehman Brothers
Aggregate Bond Index - a broad
measure of taxable bonds in the U.S.
market - returned 9.75% for the
year. Though providing returns that
appeared weak compared to those in
overseas markets, the U.S. bond
market posted relatively strong
numbers on a historical basis. Falling
interest rates through most of the year
fueled gains. The yield on the
benchmark 30-year Treasury bond
hit a three decade low in
mid-October, yielding 5.79%. By
year end, mild inflation fears, fueled
by a strengthening economy, had
pushed up the yield on the 30-year
bond to 6.35%.
An interview with Rob Citrone,
Portfolio Manager of Fidelity New Markets Income Fund
Q. ROB, WHAT ARE THE LATEST PERFORM-ANCE NUMBERS?
A. New Markets Income is not yet one year old, but the results so far have
been encouraging. The fund's total return from its start date on May 4,
1993 through December 31, 1993 was 38.84%. The best comparison I can make
with the fund's peers covers the period from May 31, 1993 through the end
of December. During that time, the fund's total return was 34.78%, compared
to 8.89% for the average general world income fund, according to Lipper
Analytical Services.
Q. WHY DID NEW MARKETS INCOME DO SO MUCH BETTER THAN MOST OTHER
INTERNATIONAL BOND FUNDS?
A. To be fair, the fund shone in part because its aim is to invest mainly
in emerging markets; most other funds in the general world income category
do not have the same goal. To understand what that meant last year,
consider that during 1993 the J.P. Morgan Emerging Markets Bond Index rose
44.17%, while the broader-based Salomon Brothers World Government Bond
Index was up only 13.27%. Beyond that, though, I focused the fund on two
countries whose markets excelled even by comparison with other emerging
markets: Argentina and Mexico.
Q. ARGENTINA FIRST. WHAT WAS YOUR STRATEGY THERE?
A. Probably the most significant bet the fund made was in a group of
Argentine government bonds called BOCONs. When I bought them they were
yielding three or four percentage points more than other Argentine
government bonds which I felt carried about the same overall risk.
Eventually, the market concurred: yields on the BOCONs fell, prices rose,
and the fund profited. The first BOCONs I bought were denominated in U.S.
dollars. But following the Argentine mid-term elections in October - which
led to a strengthening of the ruling party's hand - I moved into
peso-denominated debt, and that, too, paid off for the fund. All told,
Argentine securities totaled about 30% of the fund's investments at the end
of December.
Q. AND MEXICO?
A. Mexican investments as a percentage of the fund have actually declined
over the last six months, from more than 20% to about 14%. I still think
the country is a good risk/reward trade, and that's why it remains a focus
of the fund. But the big bet in Mexico was on the country's improving
credit quality; as that has been factored into the market, I've taken
profits and looked for new opportunities elsewhere.
Q. WHERE HAVE YOU FOUND THEM?
A. In Brazil, for example, where the fund's stake has more than doubled
since last June to almost 15%. Among my largest investments in Brazil have
been IDU bonds, which stands for interest due and unpaid. These are bonds
that were created as a result of debt restructuring during the late 1980s
and early 1990s. Like the Argentine BOCONs, the IDUs were yielding
significantly more than comparable Brazilian bonds when I bought them; as
the yield spread has narrowed, the fund has made money. IDUs, by the way,
are dollar-denominated. Lately, as my outlook for Brazil has improved, I've
moved increasingly into bonds denominated in the local currency.
Q. ISN'T THAT MORE RISKY?
A. It can be. Non-dollar denominated bonds carry currency risk - the risk
that the currency in the issuer's country may become less valuable compared
to the dollar. That can happen quickly in many Latin American markets due
to sudden changes in the political or economic landscapes of these
countries. Brazil has elections upcoming, and the next few months are key.
The country is moving toward positive economic reform, and I think most
Brazilians see this and want to sustain the momentum. But there are leftist
parties that are campaigning hard for positions of power. If they succeed,
Brazil's financial markets will face a lot of uncertainty. So I'm watching
the situation very closely.
Q. WHAT'S AHEAD FOR THE FUND?
A. Lately I've begun to diversify, more than doubling the number of
countries where the fund has investments. In countries like Jordan,
Ecuador, Panama and Peru, I've been adding securities that are candidates
to become so-called Brady bonds. Brady bonds are created when a portion of
a country's bad debt is converted into dollar-denominated bonds backed by
the U.S. Treasury; once the deal goes through, the price of the bonds goes
up. Around the world, the process is accelerating. Probably my biggest
regret this period is that I didn't begin investing more in these kinds of
bonds sooner. But the fact that I believe many such opportunities still
exist is a major reason why my outlook for the fund remains positive - even
if I don't expect to be able to match last year's performance.
FUND FACTS
GOAL: high current income,
followed by share price gains;
by investing largely in bonds
and other fixed-income
securities from countries with
emerging markets
START DATE: May 4, 1993
SIZE: as of December 31, 1993,
over $286 million
MANAGER: Rob Citrone, since
May 4, 1993; strategist,
emerging markets
fixed-income investments,
since 1990, M.B.A.,
University of Virginia, 1990
(checkmark)
ROB CITRONE ON NAFTA:
"NAFTA was viewed by the
investment community as either
a confirmation or a denial of
economic progress - not just in
Mexico, but throughout Latin
America. So it was as much
about market psychology as it
was about trade. I regarded
NAFTA as critical for the
region, and positioned the fund
aggressively on the assumption
that it would pass. Basically, that
meant preserving a large stake in
dollar-denominated bonds,
which have longer maturities
and therefore tend to be more
volatile than either bonds
denominated in local currency
or new issue debt. As a result,
the fund's performance suffered
during the final weeks of the
debate, but has since performed
better than it might have had I
taken a more conservative
approach."
(bullet) As of December 31, 1993,
29% of the fund's bonds were
non-dollar denominated (issued
in local currencies). Of these,
more than half were bonds
issued in either Argentina or
Brazil.
DISTRIBUTION
The Board of Trustees of
Fidelity New Markets Income
Fund voted to pay on February
7, 1994, to shareholders of
record at the opening of business
on February 4, 1994, a
distribution of $.20 derived from
capital gains realized from sale
of portfolio securities.
INVESTMENT CHANGES

TOP COUNTRIES AS OF DECEMBER 31, 1993

<TABLE>
<CAPTION>
<S> <C> <C>
(BY LOCATION OF ISSUER) % OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS
SIX MONTHS AGO

Argentina 29 25

Brazil 14 7

Mexico 14 21

United States 13 10

Nigeria 5 5

</TABLE>

TOP COUNTRIES ARE BASED ON THE LOCATION OF THE ISSUER OF EACH SECURITY,
INDICATING WHERE THE FUND IS EXPOSED TO POLITICAL AND CREDIT RISKS. THE
FUND'S LARGEST POSITION AS OF DECEMBER 31 WAS IN SECURITIES OF ARGENTINIAN
ISSUERS.
CURRENCY EXPOSURE AS OF DECEMBER 31, 1993
(ESTIMATED, BY CURRENCY) % OF FUND'S NET ASSETS % OF NET ASSETS
SIX MONTHS AGO

U.S. dollar 71 72

Argentinian peso 14 0

Brazilian cruzeiro 7 0

Mexican peso 4 21

South African rand 2 0

ESTIMATED CURRENCY EXPOSURES INCLUDE THE IMPACT OF HEDGING, WHICH REDUCES
FOREIGN CURRENCY RISK AND INCREASES THE FUND'S U.S. DOLLAR POSITION. THE
ARGENTINIAN PESO, AT APPROXIMATELY 14% OF ASSETS, WAS THE FUND'S LARGEST
FOREIGN CURRENCY EXPOSURE AS OF DECEMBER 31.
AVERAGE MATURITY AS OF DECEMBER 31, 1993
SIX MONTHS AGO

Years 10.5 7.3

THIS IS THE AVERAGE MATURITY OF THE BONDS IN THE FUND'S PORTFOLIO, WEIGHTED
BY DOLLAR AMOUNT.
ASSET ALLOCATION
AS OF DECEMBER 31, 1993 AS OF JUNE 30, 1993
Row: 1, Col: 1, Value: 21.2
Row: 1, Col: 2, Value: 6.0
Row: 1, Col: 3, Value: 54.3
Row: 1, Col: 4, Value: 18.5
Corporate bonds 18.5%
Government
obligations 54.3%
Common stocks 6.0%
Short term and
other investments 21.2%
Corporate bonds 38.7%
Government
obligations 29.1%
Common stocks 0.7%
Short term and
other investments 31.5%
Row: 1, Col: 1, Value: 30.5
Row: 1, Col: 2, Value: 1.7
Row: 1, Col: 3, Value: 29.1
Row: 1, Col: 4, Value: 38.7
INVESTMENTS DECEMBER 31, 1993

Showing Percentage of Total Value of Investment in Securities

CORPORATE BONDS - 18.5%
MOODY'S RATINGS (D) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (A)
CONVERTIBLE BONDS - 4.2%
ARGENTINA - 2.4%
Alpargatas SA euro 9%, 3/15/98 - $ 3,500,000 $ 3,342,500 0205459A
Alpargatas SAIC 9%, 3/15/98 (f) - 3,760,000 3,590,800 020545AA
6,933,300
INDIA - 0.1%
Scici Ltd. euro 3 1/2%, 4/1/04 (f) - 270,000 359,775 79599KAA
INDONESIA - 0.9%
Indorayon euro 7%, 5/2/06 - 2,500,000 2,500,000 467994AA
PHILIPPINES - 0.8%
International Container Term Services, Inc.
unsecured 6%, 2/19/00 (f) - 1,500,000 2,265,000 459360AA
TOTAL CONVERTIBLE BONDS 12,058,075
NONCONVERTIBLE BONDS - 14.3%
ARGENTINA - 1.3%
Acindar Industria Argentina De Aceros euro
9 1/4%, 11/12/98 (f) - 1,000,000 990,000 004514AE
Brid Sapic euro 11 3/4%, 2/24/97 - 1,700,000 1,768,000 107994AA
Invertrad SA 9 1/4%, 10/14/94 (f) - 920,000 917,700 46127RAA
Petrolera Argentina San Jorge SA, secured
11%, 2/9/98 (f) - 100,000 104,250 71654PAA
3,779,950
BRAZIL - 0.9%
Telebras 17 1/2%, 7/1/05 (g) B2 BRC 132,857,816 2,529,560 954997AE
CANADA - 0.3%
Sears Canada, Inc. 11.7%, 7/10/00 - CAD 1,000,000 897,484 81234DAB
CZECH REPUBLIC - 0.3%
Komercni Banka 17%, 5/3/98 (e)(g) - CSK 30,000,000 1,004,163 50499CAB
INDONESIA - 1.2%
Indorayon Yankee 9 1/8%, 10/15/00 BB 1,500,000 1,507,500 69364LAB
PT Semen Cibinong 9%, 12/15/98 (f) - 2,000,000 2,020,000 69364UAA
3,527,500
CORPORATE BONDS - CONTINUED
MOODY'S RATINGS (D) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (A)
NONCONVERTIBLE BONDS - CONTINUED
MALAYSIA - 0.5%
Public Bank Malaysia 6 1/2%, 9/14/94 - MYR 4,000,000 $ 1,483,598 844996AA
MEXICO - 4.4%
Bancomer SA 9%, 6/1/00 (f) - 1,500,000 1,612,500 059682AA
First Mexican Acceptance Corp. euro
10 3/4%, 9/15/96 - 2,000,000 2,086,560 321998AA
Grupo Imsa SA de CV euro 8 3/4%, 7/7/98 (f) - 500,000 513,750 40048TAA
Grupo Simec 8 7/8%, 12/15/98 (f) - 1,000,000 1,018,750 40049LAA
Hylsa de CV 11%, 2/23/98 (f) - 500,000 543,750 449086AA
Offshore Mexican Bond Ltd. jr. secured new peso
linked 0%, 7/20/94 (f) - 500,000 650,625 676257AA
Third Mexican Acceptance Corp. coll. notes gtd.
by Grupo Sidek SA and Grupo Situr SA
10 1/2%, 3/15/98 (f) - 250,000 261,982 884149AB
Transport Maritima Mexicana 9 1/4%, 5/12/03 Ba2 1,000,000 1,042,500
893868AA
Tribasa Toll Road Trust 10 1/2%, 12/1/11 (f) - 4,750,000 4,928,125
896015AA
12,658,542
PHILIPPINES - 1.2%
Subic Power Corp. 9 1/2%, 12/28/08 (f) - 3,500,000 3,552,500 86482AA6
VENEZUELA - 4.2%
Venezuela Republic 7 3/8%, 12/18/07 (g) Ba1 17,000,000 12,303,750
9226469A
TOTAL NONCONVERTIBLE BONDS 41,737,047
TOTAL CORPORATE BONDS
(Cost $52,198,534) 53,795,122
GOVERNMENT OBLIGATIONS - 54.3%

ARGENTINA - 22.3%
Argentina Republic:
BOCON:
3.64%, 4/1/01 - ARP 21,559,115 17,108,465 039995AH
3.1875%, 4/1/07 B1 12,312,300 9,402,903 039995AQ
3.8%, 4/1/07 - ARP 28,419,582 19,375,147 039995AW
GOVERNMENT OBLIGATIONS - CONTINUED
MOODY'S RATINGS (D) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (A)
ARGENTINA - CONTINUED
Argentina Republic - continued
Brady euro 4%, 3/31/23 B1 $ 500,000 $ 343,125 039995AD
euro 4.1875%, 3/31/05 B1 16,750,000 14,698,125 039995AU
euro 4 1/4%, 3/31/05 (g) B1 1,500,000 1,316,250 039995AK
4.1875%, 3/31/05 (f)(g) - 3,000,000 2,632,500 039995AT
64,876,515
BRAZIL - 13.2%
Brazil Federative Republic IDU euro 4.3125%,
1/1/01 (g) - 24,460,000 20,332,375 1057569E
Siderurgica Brasileira SA inflation indexed
6%, 8/15/99 - BRC 115,175,600 17,937,978 82599PAA
38,270,353
FRANCE - 0.7%
French Government Strips 0%, 4/25/23 Aaa FRF 80,000,000 2,130,088
351996BL
INDONESIA - 0.6%
Indonesian Bank (SBI) 0%, 4/28/94 (c) - IDR 4,000,000 1,831,305 06099MAB
MEXICO - 6.9%
Mexican Government Brady:
6 1/4%, 12/31/19 Ba3 16,750,000 13,986,250 597998MM
6.63%, 12/31/19 Ba2 FRF 44,000,000 6,058,457 597998VQ
20,044,707
MOROCCO - 1.6%
Morocco Trust 4.3125%, 1/3/09 (f)(g) - 5,750,000 4,650,312 617727AA
NIGERIA - 4.5%
Central Bank of Nigeria promissory note
5.092%, 1/5/10 - 7,000,000 3,080,000 997999AF
Nigeria Brady 5 1/2%, 11/15/20 - 16,750,000 9,987,187 997999AC
13,067,187
RUSSIA - 0.3%
Vnesheconombank 7 1/2%, 9/27/96 - DEM 2,000,000 937,752 88399HAA
SOUTH AFRICA - 2.4%
South African Government 13%, 8/31/10 - ZAR 28,000,000 6,983,682
760998AA
GOVERNMENT OBLIGATIONS - CONTINUED
MOODY'S RATINGS (D) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (A)
TRINIDAD AND TOBAGO - 1.8%
Trinidad and Tobago:
euro 11 1/2%, 11/20/97 Ba2 $ 2,000,000 $ 2,170,000
9 3/4%, 11/03/00 Ba2 3,038,000 3,136,735
5,306,735
TOTAL GOVERNMENT OBLIGATIONS
(Cost $147,401,612) 158,098,636
COMMON STOCKS - 6.0%
SHARES
ARGENTINA - 2.8%
Alpargatas SA Industrias Y Commercial (Reg.) 430,000 374,831 02054592
Banco Frances Del Rio PL (Reg.) 25,518 324,712 21199692
Molinos Rio de La Plata (Reg.) 33,120 424,764 60899C22
Perez Companc Class B (b) 50,000 313,110 71399723
Telecom Argentina Stet France (b) 160,000 1,006,763 90899992
Telefonica Argentina Class B 55,000 403,938 87999D92
YPF Sociedad Anonima (b) 206,268 5,284,586 98424593
8,132,704
BRAZIL - 0.1%
Telebras PN (Reg.) 7,300,000 248,889 95499792
CHILE - 0.1%
Soc Quimica Y Minera de Chile ADR (b) 5,800 176,900 83363510
MEXICO - 2.2%
Banacci SA de CV Class C 32,000 278,171 06399893
Cemex SA, Series B (b) 13,000 387,572 15299293
Desc (Soc. de Fomento Indus.) Class B 20,000 144,237 25299692
Emvasa Del Valle de Enah Ord. (b) 98,000 452,769 29299E22
Farmacia Benevides SA de CV Ord (b) 52,000 277,077 31299422
Fomento Economico Mexicano SA (FEMSA) 'B' 58,000 381,874 34441892
Fondo Opcion SA de CV CL2 Series B (b) 322,000 901,932 34499892
Grupo Carso SA de CV Class A-1 (b) 82,000 894,978 40099594
Grupo Casa Autrey SA sponsored ADR (b) 6,000 146,250 40048P10
Grupo Embotellador de Mexico Class B (b) 64,000 1,174,501 40048J94
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
MEXICO - CONTINUED
Grupo Financiero Bancomer SA de CV sponsored ADR,
Series C (b)(f) 3,200 $ 133,600 40048610
Grupo Tribasa SA de CV sponsored ADR (b) 6,300 218,138 40049F10
Mexico Value Recovery rights (b) 12,136,000 121 59304893
Sears Roebuck de Mexico SA (b) 28,000 539,086 81240K92
Telefonos de Mexico SA sponsored ADR representing shares
Ord. Class L (b) 5,400 364,500 87940378
Tolmex B2 SA (b) 18,000 250,644 94399492
6,545,450
PANAMA - 0.2%
Panamerican Beverages, Inc. Class A 12,500 478,125 69829W10
TURKEY - 0.6%
Turkiye Garanti Bankasi ADR (b)(f) 260,000 1,820,000 90014810
TOTAL COMMON STOCKS
(Cost $14,514,498) 17,402,068
OTHER SECURITIES - 14.8%
PRINCIPAL
AMOUNT (A)
INDEXED SECURITIES - 8.0%
UNITED STATES OF AMERICA - 8.0%
Bankers Trust Company note 18.62%, 9/26/94
(coupon inversely indexed to CAD Banker's
Acceptance rate and principal indexed to
value of 1-year Canadian securities multiplied
by 13) (g)(h) $ 1,000,000 1,227,200 0669918M
Disney Corp. 0%, 9/30/94 (coupon inversely
indexed to STIBOR and principal indexed to
value of 2-year Swedish securities, both
multiplied by 8.5) (g)(h) 2,000,000 2,198,600 25469HBB
General Electric Capital Corp.:
13.31%, 10/29/96 (indexed to MXN) (g) 2,000,000 2,000,000 36962FPE
13.31%, 10/29/96 (indexed to MXN) (f)(g) 1,500,000 1,500,000 369995YN
Morgan Guaranty Trust Co.:
cert. of dep. .748%, 1/4/94 (indexed to the
change in yield on Argentina Par Bonds) 5,282,111 6,278,319 06099MAB
cert. of dep. 0%, 3/14/94 (indexed to the
change in yield on Argentina Par Bonds) 2,313,799 3,124,323 61799KAA
OTHER SECURITIES - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (A)
INDEXED SECURITIES - CONTINUED
UNITED STATES OF AMERICA - CONTINUED
Morgan Guaranty Trust Co. - continued
cert. of dep. 8.816%, 3/16/94 (indexed to the
change in yield on Mexican Par Bonds) $ 3,295,323 $ 4,387,723 61799FAH
cert. of dep. 0%, 6/6/94 (indexed to $482 par
of Westport Investments Ltd. sr. notes,
collateralized by Mexican govt. securities,
per $100 par) 1,843,443 1,767,862 61799FAE
cert. of dep. 0%, 8/22/94 (indexed to $481
par of Westport Investments Ltd. sr. notes,
collateralized by Mexican govt. securities,
per $100 par) 1,000,000 944,000 61799FAF
TOTAL INDEXED SECURITIES 23,428,027
PURCHASED BANK DEBT - 6.8%
COLOMBIA - 0.0%
Republic of Colombia amortizing
loan participation 6 3/8% 1/31/98 (g) 160,621 152,591 1953259E
ECUADOR - 2.7%
Republic of Ecuador amortizing
loan particpation 0%, 8/15/06 (g) 12,000,000 7,860,000 88399HAA
JAMAICA - 0.3%
Government of Jamaica amortizing
loan participation 4.0625%, 10/15/00 (g) 951,219 813,293 4701609B
JORDAN - 1.5%
Jordan loan participation 8 3/4%, 12/23/00 KUD 1,797,000 3,609,038
Jordan loan participation, past due interest KUD 357,511 718,013
4,327,051
POLAND - 0.8%
Polish People's Republic, past due interest CHF 1,787,467 597,624
732996AB
Polish People's Republic loan participation
6 3/8%, 1/20/02 CHF 5,000,000 1,671,707 732996AA
2,269,331
OTHER SECURITIES - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (A)
PURCHASED BANK DEBT - CONTINUED
TRINIDAD AND TOBAGO - 1.5%
Republic of Trinidad & Tobago loan participation:
Tranche A, 8.6425%, 9/30/01 (g) JPY 298,375,000 $ 2,321,361
Tranche B, 8.6425%, 9/30/01 (g) JPY 246,750,000 1,919,719
4,241,080
TOTAL PURCHASED BANK DEBT 19,663,346
TOTAL OTHER SECURITIES
(Cost $37,247,166) 43,091,373
CERTIFICATES OF DEPOSIT - 1.4%

THAILAND - 1.4%
Siam Commercial Bank TCD 7 1/4%,
11/29/96 (Cost $3,958,075) THB 100,000,000 3,931,020 7885109N
COMMERCIAL PAPER - 0.3%

MEXICO - 0.3%
Banco Nacional De Mexico SA 0%, 12/8/94
(Cost $845,533) MXN 3,090,000 894,289 0596179M
REPURCHASE AGREEMENTS - 4.7%
MATURITY
AMOUNT
UNITED STATES - 4.7%
Investments in repurchase agreements
(U.S. Treasury obligations), in a joint
trading account at 3.23% dated
12/31/93 due 1/3/94 $ 13,620,665 13,617,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $269,782,418) $ 290,829,508
WRITTEN OPTIONS
EXPIRATION DATE/ UNDERLYING FACE UNREALIZED
STRIKE PRICE AMOUNT AT VALUE GAIN/(LOSS)
CALL
Call Option on VZB
(Premium received $325,500) Jan. 1994/70.75 $ 271,250 $ 54,250
THE VALUE OF WRITTEN CALL OPTIONS AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 0.1%
FORWARD FOREIGN CURRENCY CONTRACTS
SETTLEMENT UNREALIZED
DATE(S) VALUE GAIN/(LOSS)
CONTRACTS TO BUY
11,174,778 DKK
(Payable amount $1,649,049) 1/28/94 $ 1,639,891 $ (9,158)
THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 0.6%
CONTRACTS TO SELL
181,879,080 BEF 1/26/94 to 3/16/94 $ 4,993,391 $ (17,890)
11,174,778 DKK 1/28/94 1,639,891 18,087
20,035,585 FRF 1/21/94 3,377,695 84,331
583,117,500 JPY 3/28/94 5,230,952 19,048
100,000,000 THB 1/25/94 3,914,644 33,244
TOTAL CONTRACTS TO SELL
(Receivable amount $19,293,393) $ 19,156,573 $ 136,820
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 6.6%
CURRENCY TYPE ABBREVIATIONS
ARP - Argentinean peso
BEF - Belgian franc
BRC - Brazilian cruzeiro
CAD - Canadian dollar
CSK - Czeck koruna
DKK - Danish krone
FRF - French franc
DEM - German Deutsche mark
IDR - Indonesian rupiah
JPY - Japanese yen
KUD - Kuwaiti dinar
MYR - Malaysian ringgit
MXN - Mexican peso
ZAR - South African rand
CHF - Swiss franc
THB - Thai baht
VZB - Venezuelan bolivar
LEGEND
1. Principal amount is stated in United States dollars unless otherwise
noted.
2. Non-income producing
3. Principal amount in thousands.
4. Standard & Poor's Corporation credit ratings are used in the absence
of a rating by Moody's Investors Service, Inc.
5. Restricted securities - investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on the holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
Komercni Banka
17%, 5/3/98 10/14/93 $ 1,040,670
6. Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $34,065,919 or 11.9% of net
assets.
7. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
8. Inverse floating rate security is a security where the coupon is
inversely indexed to a floating interest rate multiplied by a specified
factor. If the floating rate is high enough, the coupon rate may be zero or
be a negative amount that is carried forward to reduce future interest
and/or principal payments. The price may be considerably more volatile than
the price of a comparable fixed rate security.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 0.7% AAA, AA, A 0.7%
Baa 0.0% BBB 0.0%
Ba 13.3% BB 16.3%
B 9.7% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
For some foreign government obligations, FMR has assigned the ratings of
the sovereign credit of the issuing government. The percentage not rated by
either S&P or Moody's amounted to 56.3% including long-term debt
categorized as other securities. Non-rated securities considered to be Baa
or better quality by FMR are 23.4% of the fund's total investments.
INCOME TAX INFORMATION
At December 31, 1993, the aggregate cost of investment securities for
income tax purposes was $270,118,293. Net unrealized appreciation
aggregated $20,711,215, of which $21,251,364 related to appreciated
investment securities and $540,149 related to depreciated investment
securities.
The fund hereby designates $3,250,000 as a capital gain dividend for the
purpose of the dividend paid deduction.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS DECEMBER 31, 1993

9.Investment in securities, at value (including repurchase 10. $ 290,829,508
agreements of $13,617,000) (cost $269,782,418) (Notes 1
and 2) - See accompanying schedule

11.Long foreign currency contracts held, at value (cost 12. 1,639,891
$1,649,049) (Note 2)

13.Short foreign currency contracts (Note 2) $ (19,156,573) 14.
Contracts held, at value

15. Receivable for contracts held 19,293,393 136,820

16.Receivable for investments sold 17. 12,546,924

18.Net receivable for closed foreign currency contracts 19. 31,124

20.Receivable for fund shares sold 21. 832,295

22.Dividends receivable 23. 45,467

24.Interest receivable 25. 5,060,129

26.Receivable from investment adviser for expense 27. 63,259
reductions (Note 7)

28. TOTAL ASSETS 29. 311,185,417

LIABILITIES 30. 31.

32.Payable to custodian bank 7,357,846 33.

34.Payable for foreign currency contracts held (Note 2) 1,649,049 35.

36.Payable for investments purchased 14,515,340 37.

38.Dividends payable 389,485 39.

40.Accrued management fee 148,551 41.

42.Written options, at value (premium received $325,500) 271,250 43.

44.Other payables and accrued expenses 260,785 45.

46. TOTAL LIABILITIES 47. 24,592,306

48.NET ASSETS 49. $ 286,593,111

50.Net Assets consist of (Note 1): 51. 52.

53.Paid in capital 54. $ 257,454,650

55.Distributions in excess of net investment income 56. (119,792)

57.Accumulated undistributed net realized gain (loss) on 58. 8,029,251
investments

59.Net unrealized appreciation (depreciation) on: 60. 61.

62. Investment securities 63. 21,047,090

64. Foreign currency contracts 65. 127,662

66. Written options 67. 54,250

68.NET ASSETS, for 21,920,123 shares outstanding 69. $ 286,593,111

70.NET ASSET VALUE, offering price and redemption price per 71. $13.07
share ($286,593,111 (divided by) 21,920,123 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
MAY 4, 1993 (COMMENCEMENT OF OPERATIONS) TO DECEMBER 31, 1993

INVESTMENT INCOME 73. $ 121,686
72.Dividends

74.Interest 75. 5,747,886

76. 77. 5,869,572

78.Less foreign taxes withheld 79. (143,616)

80. TOTAL INCOME 81. 5,725,956

EXPENSES 82. 83.

84.Management fee (Note 4) $ 538,269 85.

86.Transfer agent fees (Note 4) 339,764 87.

88.Accounting fees and expenses (Note 4) 52,922 89.

90.Non-interested trustees' compensation 342 91.

92.Custodian fees and expenses 129,189 93.

94.Registration fees 153,476 95.

96.Audit 24,431 97.

98.Legal 243 99.

100.Interest (Notes 5 and 6) 33,710 101.

102.Miscellaneous 511 103.

104. Total expenses before reductions 1,272,857 105.

106. Expense reductions (Note 7) (327,595) 945,262

107.NET INVESTMENT INCOME 108. 4,780,694

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 110. 111.
(NOTES 1, 2 AND 3)
109.Net realized gain (loss) on:

112. Investment securities 12,104,510 113.

114. Foreign currency contracts (205,595) 11,898,915

115.Change in net unrealized appreciation (depreciation) on: 116. 117.

118. Investment securities 21,047,090 119.

120. Foreign currency contracts 127,662 121.

122. Written options 54,250 21,229,002

123.NET GAIN (LOSS) 124. 33,127,917

125.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM 126. $ 37,908,611
OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C>
MAY 4, 1993
(COMMENCEMENT OF
OPERATIONS) TO
DECEMBER 31, 1993

INCREASE (DECREASE) IN NET ASSETS

127.Operations $ 4,780,694
Net investment income

128. Net realized gain (loss) on investments 11,898,915

129. Change in net unrealized appreciation (depreciation) on investments 21,229,002

130. 37,908,611
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

131.Distributions to shareholders (4,780,694)
From net investment income

132. In excess of net investment income (740,943)

133. From net realized gain (3,248,513)

134. (8,770,150)
TOTAL DISTRIBUTIONS

135.Share transactions 484,045,051
Net proceeds from sales of shares

136. Reinvestment of distributions from: 4,825,257
Net investment income

137. 3,048,378
Net realized gain

138. Cost of shares redeemed (234,464,036)

139. 257,454,650
Net increase (decrease) in net assets resulting from share transactions

140. 286,593,111
TOTAL INCREASE (DECREASE) IN NET ASSETS

NET ASSETS 141.

142. Beginning of period -

143. End of period (including distributions in excess of net investment $ 286,593,111
income
of $119,792)

OTHER INFORMATION 145.
144.Shares

146. Sold 40,919,744

147. Issued in reinvestment of distributions from: 391,513
Net investment income

148. 239,841
Net realized gain

149. Redeemed (19,630,975)

150. Net increase (decrease) 21,920,123

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C>
151. MAY 4, 1993
(COMMENCEMENT OF
OPERATIONS) TO
DECEMBER 31, 1993

152.SELECTED PER-SHARE DATA

153.Net asset value, beginning of period $ 10.000

154.Income from Investment Operations .486
Net investment income (double dagger)(double dagger)

155. Net realized and unrealized gain (loss) on investments 3.302

156. Total from investment operations 3.788

157.Less Distributions (.486)
From net investment income

158. In excess of net investment income (.062)

159. From net realized gain on investments (.170)

160. Total distributions (.718)

161.Net asset value, end of period $ 13.070

162.TOTAL RETURN (dagger)(double dagger) 38.84%

163.RATIOS AND SUPPLEMENTAL DATA

164.Net assets, end of period (000 omitted) $ 286,593

165.Ratio of expenses to average net assets (dagger)(dagger) 1.24%*

166.Ratio of expenses to average net assets before expense reductions (dagger)(dagger) 1.68%*

167.Ratio of net investment income to average net assets 6.29%*

168.Portfolio turnover rate 324%*

</TABLE>

* ANNUALIZED
(dagger) TOTAL RETURN FOR A PERIOD OF LESS THAN ONE YEAR IS NOT ANNUALIZED.
(dagger)(dagger) SEE NOTE 7 OF NOTES TO FINANCIAL STATEMENTS.
(double dagger) THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES
NOT BEEN REDUCED DURING THE PERIOD SHOWN.
(double dagger)(double dagger) NET INVESTMENT INCOME PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE SHARE OUTSTANDING DURING THE PERIOD.
NOTES TO FINANCIAL STATEMENTS
For the period ended December 31, 1993

1. SIGNIFICANT ACCOUNTING
POLICIES.
Fidelity New Markets Income Fund (the fund) is a fund of Fidelity
Investment Trust (the trust) and is authorized to issue an unlimited number
of shares. The trust is registered under the Investment Company Act of
1940, as amended (the 1940 Act), as an open-end management investment
company organized as a Massachusetts business trust. The following
summarizes the significant accounting policies of the fund:
SECURITY VALUATION. Securities for which quotations are readily available
are valued at the last sale price, or if no sale price, at the closing bid
price in the principal market in which such securities are normally traded.
Securities (including restricted securities) for which quotations are not
readily available are valued primarily using dealer-supplied valuations or
at their fair value as determined in good faith under consistently applied
procedures under the general supervision of the Board of Trustees.
Short-term securities maturing within sixty days 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, other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the current exchange rate. Purchases and sales of securities,
income receipts and expense payments are translated into U.S. dollars at
the exchange rate on the dates of the transactions.
It is not practical to identify the portion of each amount shown in the
fund's Statement of Operations under the caption "Realized and Unrealized
Gain (Loss) on Investments" that arises from changes in foreign currency
exchange rates. Investment income includes net realized and unrealized
currency gains and losses recognized between accrual and payment dates.
INCOME TAXES. The fund intends to qualify as a regulated investment company
under Subchapter M of the Internal Revenue Code. By so qualifying, the fund
will not be subject to income taxes to the extent that it distributes all
of its taxable income for its fiscal year. The schedule of investments
includes information regarding income taxes under the caption "Income Tax
Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date,
except certain dividends from foreign securities where the ex-dividend date
may have passed, are recorded as soon as the funds are informed of the
ex-dividend date. Interest income, which includes accretion of original
issue discount, is accrued as earned. Investment income is recorded net of
foreign taxes where recovery of such taxes is not assured.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are declared daily and paid
monthly from net investment income. Distributions from realized gains, if
any, are recorded on the ex-dividend date.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
mortgage-backed securities, foreign currency transactions, market discount
and losses deferred due to wash sales. The fund also utilized earnings and
profits distributed to shareholders on redemption of shares as a part of
the dividends paid deduction for income tax purposes. Permanent book and
tax basis differences relating to shareholder distributions will result in
reclassifications to paid in capital.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
FORWARD FOREIGN CURRENCY CONTRACTS. The fund may enter into forward foreign
currency contracts. These contracts involve market risk in excess of the
amount reflected in the fund's Statement of Assets and Liabilities. The
face or contract amount in U.S. dollars reflects the total exposure the
fund has in that particular currency contract. The U.S. dollar value of
forward foreign currency contracts is determined using forward currency
exchange rates supplied by a quotation service.
Losses may arise due to changes in the value of the foreign currency or if
the counterparty does not perform under the contract.
Purchases and sales of forward foreign currency contracts having the same
settlement date and broker are offset and presented net on the Statement of
Assets and Liabilities. Gain (loss) on the purchase or sale of forward
foreign currency contracts having the same settlement date and broker is
recognized on the date of offset, otherwise gain (loss) is recognized on
settlement date.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. The fund's investment
adviser, Fidelity Management & Research Company (FMR), is responsible
for determining that the value of these underlying securities remains at
least equal to the resale price.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission (the SEC), the fund, along with other
registered investment companies having management contracts with FMR, may
transfer uninvested cash balances into a joint trading account. These
balances are invested in one or more repurchase agreements that are
collateralized by U.S. Treasury or Federal Agency obligations.
INTERFUND LENDING PROGRAM. Pursuant to an Exemptive Order issued by the
SEC, the fund, along with other registered investment companies having
management contracts with FMR, may
2. OPERATING POLICIES - CONTINUED
INTERFUND LENDING PROGRAM - CONTINUED
participate in an interfund lending program. This program provides an
alternative credit facility allowing the fund to borrow from, or lend money
to, other participating funds.
FUTURES CONTRACTS AND OPTIONS. The fund may invest in futures contracts and
write options. These investments involve, to varying degrees, elements of
market risk and risks in excess of the amount recognized in the Statement
of Assets and Liabilities. The face or contract amounts reflect the extent
of the involvement the fund has in the particular classes of instruments.
Risks may be caused by an imperfect correlation between movements in the
price of the instruments and the price of the underlying securities and
interest rates. Risks also may arise if there is an illiquid secondary
market for the instruments, or due to the inability of counterparties to
perform.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Options traded
on an exchange are valued using the last sale price or, in the absence of a
sale, the last offering price. Options traded over-the-counter are valued
using dealer-supplied valuations.
INDEXED SECURITIES. The fund may invest in indexed securities whose value
is linked either directly or inversely to changes in foreign currencies,
interest rates, commodities, indices, or other reference instruments.
Indexed securities may be more volatile than the reference instrument
itself, but any loss is limited to the amount of the original investment.
RESTRICTED SECURITIES. The fund is permitted to invest in privately placed
restricted securities. These securities may be resold in transactions
exempt from registration or to the public if the securities are registered.
Disposal of these securities may involve time-
consuming negotiations and expense, and prompt sale at an acceptable price
may be difficult. At the end of the period, restricted securities
(excluding 144A issues) amounted to $1,004,163 or .4% of net assets.
3. PURCHASES AND SALES OF
INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $495,904,261 and $231,518,832, respectively.
THE FOLLOWING IS A SUMMARY OF THE FUND'S WRITTEN OPTIONS ACTIVITY:
SUMMARY OF WRITTEN OPTIONS
NUMBER OF AGGREGATE FACE VALUE
CONTRACTS OF CONTRACTS
Call Options on VZB:
Outstanding at May 4, 1993 - -
Contracts opened 1 $ 271,250
Contracts closed - -
Outstanding at December 31, 1993 1 $ 271,250
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly
fee that is calculated on the basis of a group fee rate plus a fixed
individual fund fee rate applied to the average net assets of the fund. The
group fee rate is the weighted average of a series of rates ranging from
.14% to .37% and is based on the monthly average net assets of all the
mutual funds advised by FMR. The annual individual fund fee rate is .55%.
For the period, the management fee was equivalent to an annualized rate of
.71% of average net assets.
The Board of Trustees approved a new group fee rate schedule with rates
ranging from .1325% to .3700%. Effective November 1, 1993, FMR has
voluntarily agreed to implement this new group fee rate schedule as it
results in the same or a lower management fee.
SUB-ADVISER FEE. FMR, on behalf of the fund, entered into sub-advisory
agreements with affiliates of FMR. In addition, one of the sub-advisers,
Fidelity International Investment Advisors (FIIA), entered into a
sub-advisory agreement with its subsidiary, Fidelity International
Investment Advisors (U.K.) Limited (FIIAL U.K.). Under the sub-advisory
arrangements, FMR may receive investment advice and research services and
may grant the sub-advisers investment management authority to buy and sell
securities. FMR pays its sub-advisers either a portion of its management
fee or a fee based on costs incurred for these services. FIIA pays FIIAL
U.K. a fee based on costs incurred for either service.
DISTRIBUTION AND SERVICE PLAN. Pursuant to the Distribution and Service
Plan (the Plan), and in accordance with Rule 12b-1 of the 1940 Act, FMR or
the fund's distributor, Fidelity Distributors Corporation (FDC), an
affiliate of FMR, may use their resources to pay administrative and
promotional expenses related to the sale of the fund's shares. Subject to
the approval of the Board of Trustees, the Plan also authorizes payments to
third parties that assist in the sale of the fund's shares or render
shareholder support services.
TRANSFER AGENT FEE. Fidelity Service Co. (FSC), an affiliate of FMR, is the
fund's transfer, dividend disbursing and shareholder servicing agent. FSC
receives fees based on the type, size, number of accounts and the number of
transactions made by shareholders. FSC pays for typesetting, printing and
mailing of all shareholder reports, except proxy statements.
ACCOUNTING FEE. FSC maintains the fund's accounting records. The fee is
based on the level of average net assets for the month plus out-of-pocket
expenses.
5. INTERFUND LENDING PROGRAM.
The fund participated in the interfund lending program as a borrower. The
maximum loan and the average daily loan balances during the periods for
which loans were outstanding amounted to $17,400,000 and $7,245,600,
respectively. The weighted average interest rate was 3.56%. Interest
expense includes $21,419 paid under the interfund lending program.
6. BANK BORROWINGS.
The fund is permitted to have bank borrowings for temporary or emergency
purposes to fund shareholder redemptions. The fund has established
borrowing arrangements with certain banks. Under the most restrictive
arrangement, the fund must pledge to the bank securities having a market
value in excess of 220% of the total bank borrowings. The interest rate on
the borrowings is the bank's base rate, as revised from time to time. The
maximum loan and the average daily loan balances during the periods for
which loans were outstanding amounted to $26,857,000 and $16,164,250,
respectively. The weighted average interest rate was 3.42%. Interest
expense includes $12,291 paid under the bank borrowing program.
7. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse the fund's operating expenses
(excluding interest, taxes, brokerage commissions and extraordinary
expenses) above an annual rate of 1.20% of average net assets. For the
period, the reimbursement reduced the expenses by $327,595.
8. CREDIT RISK.
The fund's relatively large investment in countries with limited or
developing capital markets may involve greater risks than investments in
more developed markets and the prices of such investments may be volatile.
The yields of emerging market debt obligations reflect, among other things,
perceived credit risk. The consequences of political, social or economic
changes in these markets may have disruptive effects on the market prices
of the fund's investments and the income they generate.
REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees of Fidelity Investment Trust and the Shareholders of
Fidelity New Markets Income Fund:
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments (except for Moody's and Standard
& Poor's ratings), and the related statements of operation and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Fidelity New Markets Income
Fund (a fund of Fidelity Investment Trust) at December 31, 1993, and the
results of its operations, the changes in its net assets and the financial
highlights for the period indicated in conformity with generally accepted
accounting principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of
the Fidelity New Markets Income Fund's management; our responsibility is to
express an opinion on these financial statements based on our audit. We
conducted our audit of these financial statements in accordance with
generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audit, which included
confirmation of securities owned at December 31, 1993 by correspondence
with the custodian and brokers and the application of alternative auditing
procedures where confirmations from brokers were not received, provide a
reasonable basis for the opinion expressed above.
PRICE WATERHOUSE
Boston, Massachusetts
February 7, 1994
TO CALL FIDELITY

Please locate the address that is closest to you. We'll give your
correspondence immediate attention and send you written confirmation upon
completion of your request. Please send ALL correspondence about retirement
accounts to Dallas.
(LETTER_GRAPHIC)(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 2269
Boston, MA 02107-2269
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Fidelity Investments
P.O. Box 30280
Salt Lake City, UT 84130-0280
(LETTER_GRAPHIC)(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
Additional Payments
P.O. Box 2656
Boston, MA 02293-0656
Fidelity Investments
Additional Payments
P.O. Box 620024
Dallas, TX 75262-0024
Fidelity Investments
Additional Payments
P.O. Box 31455
Salt Lake City, UT 84131-0455
OVERNIGHT EXPRESS
Fidelity Investments
Additional Payments
World Trade Center
164 Northern Avenue
Boston, MA 02210
SELLING SHARES
Fidelity Investments
P.O. Box 193
Boston, MA 02103-0878
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Fidelity Investments
P.O. Box 30281
Salt Lake City, UT 84130-0281
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions
World Trade Center
164 Northern Avenue
Boston, MA 02210
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02101-0193
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
(LETTER_GRAPHIC)(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 620024
Dallas, TX 75262-0024
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
INVESTMENT ADVISER
Fidelity Management & Research
Company
Boston, MA
INVESTMENT SUB-ADVISERS
Fidelity Management & Research
(U.K.) Inc. (FMR U.K.)
London, England
Fidelity Management & Research
(Far East) Inc. (FMR Far East)
Tokyo, Japan
Fidelity International Investment
Advisors (FIIA)
Fidelity International Investment
Advisors (U.K.) Limited (FIIAL U.K.)
Fidelity Investments Japan Ltd. (FIJ)
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Arthur S. Loring, Secretary
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
CUSTODIAN
Chase Manhattan Bank, N.A.
New York, NY
FIDELITY'S TAXABLE BOND FUNDS
Capital & Income Fund
Ginnie Mae Portfolio
Global Bond Fund
Government Securities Fund
Intermediate Bond Fund
Investment Grade Bond Fund
Mortgage Securities Portfolio
New Markets Income Fund
Short-Intermediate Government Fund
Short-Term Bond Portfolio
Short-Term World Income Fund
Spartan Ginnie Mae Fund
Spartan Government Income Fund
Spartan High Income Fund
Spartan Investment Grade Bond Fund
Spartan Limited Maturity Government
Fund
Spartan Long-Term Government Bond
Fund
Spartan Short-Intermediate Government Fund
Spartan Short-Term Income Fund
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)