FIDELITY INVESTMENT TRUST, N-30B-2, 1994-08-19

FIDELITY INVESTMENT TRUST
N-30B-2, 1994-08-19

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(2_FIDELITY_LOGOS)FIDELITY

GLOBAL BOND
FUND
SEMIANNUAL REPORT
JUNE 30, 1994
CONTENTS

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

PERFORMANCE 4 How the fund has done over time.

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

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

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

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

NOTES 23 Notes to the financial statements.

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

DEAR SHAREHOLDER:
The past few months have been an
unsettling time for bond investors. The bond market declined after the
Federal Reserve Board raised short-term interest rates from February
through May. These rate hikes caused bond yields to rise and bond prices to
fall. While nobody knows whether rates will continue to go up, this may be
a good time to review the effect rising rates have on your bond fund
investment, and consider how well your current bond fund holdings match
your original investment goals.
Most investors choose bond funds to generate income and to help diversify
their investment portfolios. Despite the recent market downturn, bond
mutual funds still satisfy these needs. Where investors have felt the
negative effect of rising rates is in the market value of their investment,
which has eroded as bond prices have fallen. It's important
to remember, however, that this loss in principal is only "on paper" until
you choose to sell your shares. That's why your investing time horizon is
key.
If your time horizon is short - one year or less - you may want to consider
shifting all or part of your bond fund investment into short-term
investments.
If you don't need your money within the next year, staying in your bond
fund may be the appropriate strategy for you. The longer your investing
time frame, the better your chances of retaining your principal investment
through periods of rising AND falling rates. For example, if you plan to
use your money in one to two years, a short-term bond fund may be the right
choice. If your time frame is two to four years, a fund with an
intermediate length average maturity may be best. If you have a longer-term
goal - say a child's college education that's 10 years away - you may be
willing to ride out the bond market's peaks and valleys in exchange for the
higher potential returns of a longer-term fund.
If you have questions, please call us at 1-800-544-8888. We would be happy
to send you a Fidelity FundMatch kit, which can help you determine the mix
of investments that is right for you. You might also find it convenient to
set up
a regular investment plan using the Fidelity Automatic Account BuilderSM.
We look forward to hearing from you.
Best regards,
Edward C. Johnson 3d
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 JUNE 30, 1994 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

Global Bond -16.32% -7.34% 45.12% 80.63%

Salomon Brothers World Government
Bond Index 0.67% 5.18% 65.56% n/a

Average General World Income Fund -6.90% 0.34% 52.68% n/a

Consumer Price Index 1.51% 2.49% 19.26% 33.94%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, 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 125 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 CPI returns begin on the month end closest to
the fund's start date.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JUNE 30, 1994 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Global Bond -7.34% 7.73% 8.19%

Salomon Brothers World Government
Bond Index 5.18% 10.61% n/a

Average General World Income Fund 0.34% 8.76% n/a

Consumer Price Index 2.49% 3.59% 3.97%

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 Fund (451) SB World Gov't Bond Index
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
01/31/94 21713.92 20156.40
02/28/94 20531.72 20025.38
03/31/94 19053.53 19997.35
04/30/94 18678.31 20019.34
05/31/94 18782.48 19843.17
06/30/94 17973.26 20128.91

$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 June 30, 1994, the value of your investment would have
grown to $17,973 - a 79.73% 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 $20,129 - a 101.29% 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 JUNE 30, 1994 PAST 30 PAST 6 PAST 1
DAYS MONTHS YEAR

Dividends per share 4.73(cents) 33.00(cents) 72.99(cents)

Annualized dividend rate 5.51% 5.83% 6.14%

30-day annualized yield 7.67% - -

DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on the fund's average share price of
$10.44 over the past month, $11.42 over the past six months and $11.88 over
the past year, you can compare the fund's income over these three periods.
Dividends per share are based on the fund's interest and dividend income
and do not include gains or losses from currency transactions. However,
because the fund has realized currency losses that will offset income for
tax purposes, a portion of the dividends for the past six months may be
non-taxable to shareholders. The tax status of the fund's dividends will be
calculated at the close of the year and reported to shareholders on the
annual tax statement in January.
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. It does not reflect the cost of hedging and other
currency gains and losses.
FUND TALK: THE MANAGER'S OVERVIEW

An interview with Jonathan Kelly, Portfolio Manager of Global Bond
Q. JONATHAN, GLOBAL BOND HAS GOTTEN OFF TO A ROCKY START IN 1994.
A. Yes. The fund's total return for the six months ended June 30, 1994, was
- -16.32%. Over the same period, the average general world income fund had a
total return of -6.90%, according to Lipper Analytical Services. For the
year ended June 30, 1994, the fund returned -7.34%, compared to the 0.34%
for the Lipper average.
Q. WHAT HAPPENED?
A. My long-term strategy of integrating emerging market bonds with bond
markets of the developed world didn't perform as I had hoped. The main
reason for the drop was an increase in interest rates that caused a
reduction in bond prices in Europe and Latin America. The emerging markets
dropped nearly 20% during the first half of 1994 according to the J.P.
Morgan Emerging Markets Bond Index. At the start of the year, the fund had
30% to 35% of its assets invested in these markets.
Q. WHICH COUNTRIES' BOND MARKETS HURT THE FUND THE MOST?
A. Those in Latin America. Mexico's political instability - partially a
result of the assassination of the presidential candidate Mr. Colosio - as
well as its general economic slowdown really hurt the whole region.
Unfortunately, when Mexico has problems, the entire Latin American region
tends to suffer.
Q. SO THE FUND WAS HURT MOSTLY
IN MEXICO?
A. No, in Argentina actually. I was relatively heavily invested there. I
felt - and continue to feel - that the country was on the right track in
terms of fiscal and monetary policy, and inflation was low. But three
problems led to losses there. First, there was the global and U.S. bond
turbulence caused by rising interest rates. Second was the effect of
Mexican instability that I already mentioned. And third, investors in local
Argentine short-term instruments fled in large numbers when the market
dropped, mostly because they were operating with borrowed money and had to
sell quickly. So, despite what I believed was an improving economy during
the first half of 1994, the Argentine market performed very poorly.
Q. WHAT ABOUT THE DROP IN THE VALUE OF THE DOLLAR? HOW DID THAT AFFECT THE
FUND'S PERFORMANCE?
A. I tend to be conservative about hedging foreign exchange risk, and the
fund did not benefit significantly from a weakening dollar. Many world bond
funds make large bets on exchange rates in order to elevate the expected
return of the fund, but I haven't during this six-month period.
Q. WHY NOT?
A. Trying to make money speculating on currencies is not a successful
long-term strategy because currencies are hard to predict and can be very
volatile. It's important to note that when a currency is devalued, the
money is lost for good. Because the large majority of the fund's losses
were in bonds rather than in currencies, if underlying market factors such
as interest rates and inflation improve, the fund has a chance to make back
the losses.
Q. ARE YOU ABANDONING THE FUND'S POSITION IN EMERGING MARKETS?
A. No. I still like Latin American markets. I expect to see a positive
result out of August's presidential election in Mexico, and am hoping that
the new government will continue the process of economic reform. Argentina
remains the fund's first choice in the region because of its favorable
economic policy. It's important to note that the fund's solid returns in
1993 had a lot to do with the performance of the emerging markets in which
the fund was involved. And I'll point out the fund successfully invested
this year in bonds issued in the Czech Republic, where the currency was
stable and yields fell. At one point, I had as much as one percent of the
fund in Czech securities and they earned a double-digit return. I was
looking for more opportunities to invest in there, but this is such a new
market that there are not many securities available, although I still have
a small investment there. However, one of my clear objectives now is to
reduce volatility. My goal is to bring about a neutral position by
investing about 20% of the fund in emerging markets and the remaining 80%
in developed markets. While emerging markets will continue to be an
important part of the fund, it's unlikely I'll reach the higher ratios of
the past. When I took over the fund, the ratio had been as high as 47% in
emerging markets.
Q. THE FUND HAS ABOUT 20% OF ITS
ASSETS IN CASH. ARE YOU BEING CAUTIOUS ABOUT THE NEAR FUTURE?
A. Yes. In my opinion, of late, global bond markets have been operating
more on psychology than on reaction to inflation levels. I want to
position the fund more defensively. I'm very sensitive to volatility in the
fund and in the global bond markets. Before I jump back in with a fully
invested position, I want to be comfortable that things have leveled out.
Q. WHAT'S YOUR OUTLOOK FOR THE NEXT SIX MONTHS?
A. I'm cautiously optimistic. On the negative side, economies around the
world are largely out of recession. All things being equal, economic
recoveries are bad for bonds because they're generally associated with
higher interest rates and lower bond values. On the positive side,
inflation in the developed world is extremely low, as low as it's been
since the 1960s. In addition, the combination of low inflation and the
sell-off earlier in the year has created very high real yields. Real yields
- - a bond's stated interest rate minus inflation - are generally a good
measure of value. I'm focused on reducing volatility. At the same time
there's the potential for earning decent returns. Over the long term, I
believe the fund can produce attractive returns relative to the U.S.
market.

FUND FACTS
GOAL: high total return by
investing in debt securities
from around the world
START DATE: December 30,
1986
SIZE: as of June 30, 1994,
more than $519 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;
joined Fidelity in 1991
(checkmark)
JONATHAN KELLY ON MEXICO'S
INFLUENCE ON LATIN AMERICAN
MARKETS:
"Since Mexico is the largest of
the Latin American emerging
markets, when it has
problems, the entire market
tends to suffer. I call it a
systematic effect. It's like
when Mexico sneezes the
rest of the Latin markets catch
a cold. For example, even
though the fundamental news
regarding inflation and fiscal
policy on Argentina's market
was bullish earlier in the year,
it actually performed worse
than Mexico after the
assassination of the Mexican
presidential candidate. I think
that's because Argentina is
perceived to be a riskier
credit. Oftentimes, when
there are bearish markets, the
largest of a grouping tends to
go down the least, while the
smaller ones go down more.
Even though it was Mexico
that faced political
uncertainty, its market
performed better than the
others. Mexico is viewed as
the core of the Latin American
emerging markets."
(bullet) The fund is an active user of
derivatives. The fund uses both
forward currency contracts and
currency options to move in
and out of different currencies.
In addition, the fund was using
indexed securities to try to
benefit from possible declines
in short-term foreign interest
rates, and used interest rate
futures during the period.
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 JUNE 30, 1994

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

Argentina 18 20

Mexico 12 18

United Kingdom 7 3

United States 7 7

Brazil 5 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 JUNE 30 WAS IN SECURITIES OF ARGENTINEAN
ISSUERS.
TOP INTEREST-RATE EXPOSURES AS OF JUNE 30, 1994
(ESTIMATED, BY COUNTRY) % OF FUND'S TOTAL % OF INTEREST-
INTEREST-RATE EXPOSURE RATE EXPOSURE
SIX MONTHS AGO

United States 30 29

France 11 17

United Kingdom 9 3

Canada 8 11

Italy 7 7

FIDELITY ESTIMATES INTEREST-RATE EXPOSURES BASED ON THE DURATION, OR
INTEREST-RATE SENSITIVITY, OF THE FUND'S HOLDINGS. AS OF JUNE 30, THE FUND
WAS MOST SENSITIVE TO INTEREST-RATE MOVEMENTS IN THE U.S., WHICH ACCOUNTED
FOR APPROXIMATELY 30% OF THE FUND'S INTEREST-RATE EXPOSURE.
TOP CURRENCY EXPOSURES AS OF JUNE 30, 1994
(ESTIMATED, BY CURRENCY) % OF FUND'S NET ASSETS % OF NET ASSETS
SIX MONTHS AGO

U.S. dollar 61 63

Thai baht 9 1

Italian lira 7 1

New Zealand dollar 5 7

Singapore dollar 5 1

ESTIMATED CURRENCY EXPOSURES INCLUDE THE IMPACT OF HEDGING, WHICH REDUCES
FOREIGN CURRENCY RISK AND INCREASES THE FUND'S U.S. DOLLAR POSITION. THE
THAI BAHT, AT APPROXIMATELY 9% OF ASSETS, WAS THE FUND'S LARGEST FOREIGN
CURRENCY EXPOSURE AS OF JUNE 30.
INVESTMENTS JUNE 30, 1994 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securites

CORPORATE BONDS - 13.9%
MOODY'S RATINGS (C) PRINCIPAL VALUE (NOTE 1)
AMOUNT (A)
CONVERTIBLE BONDS - 6.4%
JAPAN - 4.6%
Bridgestone Corp. 3.70%, 12/31/98 - JPY 170,000,000 $ 2,259,759
Canon, Inc. 1.30%, 12/19/08 A JPY 810,000,000 9,739,764
Matsushita Electric Works Co. Ltd. 2.70%,
5/31/02 - JPY 530,000,000 6,735,929
Nippondenso Co. Ltd. 1.60%, 12/20/02 - JPY 131,000,000 1,724,065
Shin-Etsu Chemical Co. Ltd. 1.30%, 3/31/99 A2 JPY 90,000,000 1,077,624
Sony Corp.:
1.40%, 9/30/03 Aa3 JPY 183,000,000 2,172,594
1.40%, 3/31/05 Aa3 JPY 50,000,000 485,795
24,195,530
LUXEMBOURG - 0.8%
Softe SA euro 4 1/4%, 7/30/98 (b) - ITL 6,250,000 4,353,750
NEW ZEALAND - 0.6%
Brierley Investements Ltd. 9%, 6/30/98 - NZD 4,608,400 3,095,594
PHILLIPINES - 0.4%
International Container Term Services, Inc.
unsecured 6%, 2/19/00 (e) - 1,800,000 2,340,000
TOTAL CONVERTIBLE BONDS 33,984,874
NONCONVERTIBLE BONDS - 7.5%
ARGENTINA - 1.4%
Alpargatas SA euro 9% 3/15/98 - 570,000 518,700
Alto Parana:
euro 12%, 3/4/95 - 1,000,000 370,000
12%, 3/4/95 (e) - 1,000,000 370,000
12%, 3/4/95 (e) - 3,000,000 1,110,000
Brid Sapic euro 11 3/4%, 2/24/97 - 3,000,000 2,910,000
Invertrad SA 9 1/4%, 10/14/94 (e) - 2,100,000 2,084,250
7,362,950
CZECH REPUBLIC - 0.2%
Komercni Banka 9 5/8%, 5/3/98 (d)(f) - CSK 30,000,000 991,911
CORPORATE BONDS - CONTINUED
MOODY'S RATINGS (C) PRINCIPAL VALUE (NOTE 1)
AMOUNT (A)
NONCONVERTIBLE BONDS - CONTINUED
INDONESIA - 0.2%
Indorayon Yankee 9 1/8%, 10/15/00 BB $ 1,100,000 $ 946,000
MEXICO - 2.3%
Bancomext 8%, 8/5/03 (e) Ba2 2,000,000 1,687,500
Empresas La Moderna SA 10 1/4%,
11/12/97 (e) - 2,000,000 2,040,000
First Mexican Acceptance Corp. euro
10 3/4%, 9/15/96 - 1,500,000 1,534,260
Grupo Dina (Consorcio G) 10 1/2%,
11/18/97 (e) - 4,000,000 3,950,000
Nacional Financiera SA 9 3/8%,
7/15/02 (e) - 3,000,000 2,820,000
12,031,760
MOROCCO - 3.4%
Morocco Trust 4 1/2%, 1/3/09 (e)(f) - 25,000,000 17,937,500
TOTAL NONCONVERTIBLE BONDS 39,270,121
TOTAL CORPORATE BONDS
(Cost 74,020,251) 73,254,995
GOVERNMENT OBLIGATIONS (I) - 57.9%
ARGENTINA - 16.8%
Argentina Republic:
BOCON (f):
3 1/4%, 4/1/01 - ARP 20,818,059 11,273,762
4 1/2%, 4/1/01 B1 24,018,148 16,445,298
3 1/4%, 9/1/02 - ARP 5,419,296 2,377,478
3 1/4%, 4/1/07 - ARP 5,179,433 2,041,262
Brady:
euro 4 1/4%, 3/31/23 (f) B1 7,000,000 3,456,250
4 1/4%, 3/31/23 (e)(f) - 5,000,000 2,468,750
euro 5%, 3/31/05 BB- 59,500,000 42,468,125
5%, 3/31/05 (e) - 396,000 282,645
Province of Chaco 11 7/8%, 9/10/97 (d) - 5,400,000 5,454,000
Province of Cordoba 10%, 1/28/95 (d) - 1,808,333 1,765,476
88,033,046
GOVERNMENT OBLIGATIONS - CONTINUED
MOODY'S RATINGS (C) PRINCIPAL VALUE (NOTE 1)
AMOUNT (A)
BRAZIL - 5.4%
Brazil Federative Republic IDU euro
6.0625%, 1/1/01 (f) B2 $ 34,550,000 $ 24,012,250
Siderurgica Brasileiras SA inflation indexed
6%, 8/15/99 (g) - BRC 36,149,300 4,384,596
28,396,846
CANADA - 5.2%
Canadian Government:
Stripped Coupon:
9/15/11 Aaa CAD 7,242,000 1,025,634
12/1/11 Aaa CAD 5,070,000 718,029
13 3/4%, 3/15/00 Aaa CAD 3,000,000 2,601,482
6 1/2%, 6/1/04 Aaa CAD 20,000,000 11,885,054
12 1/2%, 3/1/06 Aaa CAD 2,285,000 2,010,370
13%, 10/1/07 Aaa CAD 3,600,000 3,298,753
Province of Ontario 7 3/4%, 12/8/03 Aa2 CAD 9,000,000 5,758,243
27,297,565
CZECH REPUBLIC - 0.4%
Czech Republic 14%, 7/8/96 - CSK 50,000,000 1,908,195
DENMARK - 1.4%
Danish Government Bullet 7%, 12/15/04 Aa1 DKK 50,000,000 7,267,915
GERMANY - 1.8%
German Government 6 1/4%, 1/4/24 Aaa DEM 18,000,000 9,555,325
FINLAND - 1.6%
Finnish Government 9 1/2%, 3/15/04 Aa2 FIM 45,000,000 8,430,507
FRANCE - 0.7%
French Government Strips 4/25/23 Aaa FRF 200,000,000 3,515,460
ITALY - 4.0%
Italian Government (b):
8 1/2%, 1/1/99 A1 ITL 20,550,000 12,117,476
8 1/2%, 4/1/99 - ITL 11,200,000 6,578,637
11%, 6/01/03 Aa3 ITL 3,710,000 2,341,752
21,037,865
GOVERNMENT OBLIGATIONS - CONTINUED
MOODY'S RATINGS (C) PRINCIPAL VALUE (NOTE 1)
AMOUNT (A)
MEXICO - 8.2%
Mexican Government:
Brady:
5.8125%, 12/31/19 (f) Ba3 $ 15,000,000 $ 12,300,000
6.63%, 12/31/19 Ba2 FRF 93,250,000 10,448,662
Cetes:
0%, 7/21/94 - MXN 59,740,000 17,449,391
0%, 7/28/94 - MXN 9,195,000 2,677,405
42,875,458
NEW ZEALAND - 4.8%
New Zealand Government:
8%, 7/15/98 Aaa NZD 10,000,000 5,999,189
10%, 3/15/02 Aaa NZD 9,000,000 6,037,591
8%, 4/15/04 Aaa NZD 21,350,000 12,938,992
24,975,772
UNITED KINGDOM - 6.8%
United Kingdom of Great Britain & Northern
Ireland 12%, 11/20/98 Aaa GBP 20,500,000 35,697,521
UNITED STATES OF AMERICA - 0.8%
U.S. Treasury Stripped Coupon 5/15/14 Aaa 20,000,000 4,183,600
TOTAL GOVERNMENT OBLIGATIONS
(Cost $319,450,756) 303,175,075
INDEXED SECURITIES - 6.0%
UNITED STATES OF AMERICA - 6.0%
Bankers Trust Company:
4 1/2%, 12/9/94 (inversely indexed to
3-month U.S. Treasury Bill, multiplied by 12) 4,000,000 3,842,800
4 3/4%, 12/21/94 (inversely indexed to
3-month JPY LIBOR rate, multiplied by 12) 3,000,000 3,062,400
4.73%, 12/21/94 (inversely indexed to
3-month JPY LIBOR rate, multiplied by 12) 2,000,000 2,006,400
4.90%, 12/21/94 (inversely indexed to
3-month ITL LIBOR rate, multiplied by 12) 2,000,000 1,911,800
4.90%, 12/21/94 (inversely indexed to
3-month JPY LIBOR rate, multiplied by 12) 2,000,000 2,000,000
INDEXED SECURITIES - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (A)
UNITED STATES OF AMERICA - CONTINUED
5%, 3/17/95 (inversely indexed to 3-month
GBP LIBOR rate, multiplied by 12) $ 5,000,000 $ 4,769,500
5.0625%, 3/17/95 (inversely indexed to 3-month
GBP LIBOR rate, multiplied by 12) 2,000,000 1,931,400
5.3125%, 3/17/95 (inversely indexed to
3-month GBP LIBOR rate, multiplied by 12) 2,000,000 1,876,000
5.30%, 6/21/95 (inversely indexed to
3-month FRF PIBOR rate, multiplied by 12) 3,000,000 2,701,200
5.35%, 6/23/95 (inversely indexed to
3-month GBP LIBOR rate, multiplied by 12) 1,000,000 910,600
Bayer Landesbank cert. of dep. 4.8286%,
12/21/94 (inversely indexed to 3-month
FIM HELIBOR rate, multiplied by 12) 3,900,000 3,435,900
Citibank Nassau cert. of dep. 5.70%, 6/21/95
(inversely indexed to 3-month FRF PIBOR rate,
multiplied by 12) 3,000,000 2,753,400
TOTAL INDEXED SECURITIES
(Cost $32,900,000) 31,201,400
COMMERCIAL PAPER - 1.4%
MEXICO - 1.4%
Grupo Embotellador de Mexico 0%,
8/10/94 (d) (Cost $7,434,669) 7,500,000 7,433,920
REPURCHASE AGREEMENTS - 20.8%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations), in a joint
trading account at 4.29% dated
6/30/94 due 7/1/94 (Note 3) $ 109,131,003 109,118,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $542,923,676) $ 524,183,390
FORWARD FOREIGN CURRENCY CONTRACTS
SETTLEMENT UNREALIZED
DATE(S) VALUE GAIN/(LOSS)
CONTRACTS TO BUY
40,024,111 CAD 7/12/94 to 8/8/94 $ 28,901,230 $ (15,499)
601,804,643 DEM 7/15/94 to 10/5/94 378,957,268 8,653,452
19,215,556 DKK 9/9/94 3,074,577 1,317
14,685,700 FRF 7/29/94 to 8/8/94 2,695,155 83,771
44,760,000,000 IDR 12/23/94 19,984,844 (15,156)
24,056,965,500 ITL 7/6/94 to 9/20/94 15,144,458 271,277
3,805,343,000 JPY 7/7/94 to 10/5/94 38,758,122 872,107
111,850,000 MYR 9/26/94 to 9/30/94 43,301,288 381,270
40,027,500 SGD 7/18/94 to 7/27/94 26,245,562 563,655
1,267,225,000 THB 9/21/94 to 9/23/94 50,247,830 247,830
TOTAL CONTRACTS TO BUY
(Payable amount $596,266,310) $ 607,310,334 11,044,024
THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 115.9% (H)
CONTRACTS TO SELL
53,863,956 CAD 7/12/94 to 8/8/94 $ 38,889,427 (129,777)
466,246,414 DEM 7/15/94 to 9/23/94 293,614,285 (6,362,762)
56,737,271 DKK 9/9/94 9,078,227 (117,286)
58,050,000 FIM 9/9/94 10,962,396 (476,554)
105,977,450 FRF 7/29/94 to 9/28/94 19,430,199 (222,928)
4,599,136,000 JPY 7/7/94 to 9/21/94 46,764,038 (2,164,038)
19,798,993 GBP 8/5/94 30,555,984 (771,328)
46,500,000 MYR 9/26/94 to 9/28/94 17,999,658 (196,426)
76,551,746 NLG 7/6/94 to 9/6/94 42,983,528 (2,044,593)
TOTAL CONTRACTS TO SELL
(Receivable amount $497,792,050) $ 510,277,742 (12,485,692)
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 97.3% (H)
$ (1,441,668)
CURRENCY ABBREVIATIONS
ARP - Argentinean peso
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
IDR - Indonesian rupiah
ITL - Italian lira
JPY - Japanese yen
MYR - Malaysian ringgit
MXN - Mexican peso
NZD - New Zealand dollar
SGD - Singapore dollar
THB - Thai baht
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:
SECURITY ACQUISITION ACQUISITION
DATE COST
Grupo Embotellador
de Mexico 0%,
8/10/94 5/5/94 $ 7,434,669
Province of Chaco
11 7/8%, 9/10/97 3/9/94 5,547,749
Province of Cordoba
10%, 1/28/95 1/27/94 1,808,334
Komercni Banka
9 5/8%, 5/3/98 10/14/93 1,040,657
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 $37,090,645 or 7.1% of net
assets.
6. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
7. Principal amount shown is original face amount and does not reflect the
inflation adjustments.
8. Forward foreign currency contracts include contracts with the same
settlement date which have been offset with different brokers with a value
of $355,277,966 or 67.8% as a percentage of investments in securities.
9. Most foreign government obligations have not been individually rated by
S&P or Moody's. The ratings listed are assigned to securities by FMR, the
fund's investment adviser, based principally on S&P and Moody's ratings of
the sovereign credit of the issuing government.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows:
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 23.8% AAA, AA, A 23.5%
Baa 0.0% BBB 0.0%
Ba 4.6% BB 10.1%
B 9.5% 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 16.7% including long-term debt
categorized as other securities. FMR has determined that unrated debt
securities that are lower quality account for 3.6% of the total value of
investment in securities.
INCOME TAX INFORMATION
At June 30, 1994, the aggregate cost of investment securities for income
tax purposes was $542,923,677. Net unrealized depreciation aggregated
$18,740,287, of which $4,628,223 related to appreciated investment
securities and $23,368,510 related to depreciated investment securities.
At December 31, 1993, the fund was required to defer $3,940,000 of losses
on futures contracts, options and foreign currency transactions.
INDUSTRY DIVERSIFICATION
As a Percentage of Total Value of Investments
Basic Industries 1.6%
Construction & Real Estate 0.3
Durables 1.8
Energy 0.6
Finance 7.0
Government Obligations 60.4
Holding Companies 1.4
Industrial Machinery & Equipment 1.3
Media & Leisure 0.3
Nondurables 1.8
Repurchase Agreements 20.8
Technology 1.9
Utilities 0.8
100.0%
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JUNE 30, 1994 (UNAUDITED)

ASSETS

Investment in securities, at value (including repurchase $ 524,183,390
agreements of $109,118,000) (cost $542,923,676)
(Notes 1 and 2) - See accompanying schedule

Cash 122,318

Receivable for investments sold 28,717,924

Unrealized appreciation on foreign currency contracts (Note 11,371,128
2)

Interest receivable 6,871,976

Other receivables 424,176

TOTAL ASSETS 571,690,912

LIABILITIES

Payable for investments purchased $ 22,216,261

Unrealized depreciation on foreign currency contracts (Note 12,812,796
2)

Payable for closed foreign currency contracts (Note 2) 14,620,758

Payable for fund shares redeemed 1,655,081

Dividends payable 143,008

Accrued management fee 319,384

Other payables and accrued expenses 625,688

TOTAL LIABILITIES 52,392,976

NET ASSETS $ 519,297,936

Net Assets consist of (Note 1):

Paid in capital $ 623,974,971

Distributions in excess of net investment income (Note 1) (4,386,721)

Accumulated undistributed net realized gain (loss) on (79,872,423)
investments and foreign currency transactions

Net unrealized appreciation (depreciation) on investments (20,417,891)
and assets and liabilities in foreign currencies

NET ASSETS, for 50,765,912 shares outstanding $ 519,297,936

NET ASSET VALUE, offering price and redemption price per $10.23
share ($519,297,936 (divided by) 50,765,912 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JUNE 30, 1994 (UNAUDITED)

INVESTMENT INCOME $ 116,545
Dividends

Interest (Note 6) 22,941,463

TOTAL INCOME 23,058,008

EXPENSES

Management fee (Note 5) $ 2,241,470

Transfer agent fees (Note 5) 849,588

Accounting fees and expenses (Note 5) 169,456

Non-interested trustees' compensation 1,931

Custodian fees and expenses 375,410

Registration fees 38,214

Audit 52,436

Legal 2,373

Interest (Note 7) 26,171

Miscellaneous 5,891

TOTAL EXPENSES 3,762,940

NET INVESTMENT INCOME 19,295,068

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
(NOTES 1, 2 AND 4)
Net realized gain (loss) on:

Investment securities (65,521,073)

Foreign currency transactions (13,997,130)

Futures contracts 690,805 (78,827,398)

Change in net unrealized appreciation (depreciation) on:

Investment securities (56,781,150)

Assets and liabilities in foreign currencies (238,179) (57,019,329)

NET GAIN (LOSS) (135,846,727)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM $ (116,551,659)
OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED DECEMBER 31,
JUNE 30, 1994 1993
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

Operations $ 19,295,068 $ 29,485,504
Net investment income

Net realized gain (loss) (78,827,398) 11,261,922

Change in net unrealized appreciation (depreciation) (57,019,329) 45,885,713

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (116,551,659) 86,633,139
FROM OPERATIONS

Distributions to shareholders: (18,195,484) (22,241,596)
From net investment income

From net realized gain - (11,261,922)

In excess of net realized gain (1,190,563) (8,138,598)

TOTAL DISTRIBUTIONS (19,386,047) (41,642,116)

Share transactions 568,150,170 684,294,760
Net proceeds from sales of shares

Reinvestment of distributions 17,271,923 37,152,801

Cost of shares redeemed (616,438,116) (359,391,059)

Net increase (decrease) in net assets resulting from (31,016,023) 362,056,502
share transactions

TOTAL INCREASE (DECREASE) IN NET ASSETS (166,953,729) 407,047,525

NET ASSETS

Beginning of period 686,251,665 279,204,140

End of period (including distributions in excess of net $ 519,297,936 $ 686,251,665
investment income of $(4,386,721) and
$(5,486,305), respectively)

OTHER INFORMATION
Shares

Sold 49,227,564 56,470,051

Issued in reinvestment of distributions 1,527,183 3,054,696

Redeemed (54,399,767) (29,744,063)

Net increase (decrease) (3,645,020) 29,780,684

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS SIX MONTHS YEAR ENDED TWO MONTH YEARS ENDED OCTOBER 31,
ENDED DECEMBER 31, PERIOD ENDED
JUNE 30, 1994 DECEMBER 31,

(UNAUDITED) 1993 1992 1992D 1991 1990 1989

</TABLE>

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 12.610 $ 11.340 $ 11.830 $ 11.980 $ 12.19 $ 11.22 $ 11.47

Income from Investment Operations

Net investment income .344 .731 .145 .839 .74 .89E .82E

Net realized and unrealized gain (loss) on investments (2.374) 1.648 (.173) .110 .52 .57 (.17)

Total from investment operations (2.030) 2.379 (.028) .949 1.26 1.46 .65

Less Distributions

From net investment income (.330) (.629) (.332) (1.099) (1.03) (.49) (.81)

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

In excess of net realized gain (.020) (.200) - - - - -

Total distributions (.350) (1.109) (.462) (1.099) (1.47) (.49) (.90)

Net asset value, end of period $ 10.230 $ 12.610 $ 11.340 $ 11.830 $ 11.98 $ 12.19 $ 11.22

TOTAL RETURN B (16.32)% 21.91% (.23)% 8.18% 11.31% 13.45% 6.04%F

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (in millions) $ 519 $ 686 $ 279 $ 332 $ 160 $ 126 $ 57

Ratio of expenses to average net assets 1.20%A 1.17% 1.37%A 1.23% 1.35% 1.40% 1.50%

Ratio of expenses to average net assets before expense 1.20%A 1.17% 1.37%A 1.23% 1.35% 1.40% 1.65%

reductions

Ratio of net investment income to average net assets 6.17%A 6.79% 6.92%A 8.02% 7.92% 7.82% 7.56%

Portfolio turnover rate 289%A 198% 142%A 81% 228% 154% 150%

</TABLE>

A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C INCLUDES AMOUNTS DISTRIBUTED FROM NET REALIZED GAINS ON FOREIGN CURRENCY
RELATED TRANSACTIONS TAXABLE AS ORDINARY INCOME.
D EFFECTIVE JULY 1, 1992, DIVIDENDS FROM NET INVESTMENT INCOME WERE
DECLARED DAILY AND PAID MONTHLY.
E FOR THE PERIODS ENDED OCTOBER 31, 1990 AND 1989, NET INVESTMENT INCOME
PER SHARE HAS BEEN CALCULATED USING AVERAGE SHARES OUTSTANDING DURING THE
YEAR.
F THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIOD SHOWN.
SEMIANNUAL REPORT
22
NOTES TO FINANCIAL STATEMENTS
For the period ended June 30, 1994 (Unaudited)

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 and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Purchases and
sales of securities, income receipts, and expense payments are translated
into U.S. dollars at the prevailing exchange rate on the respective dates
of the transactions.
Effective January 1, 1994, the fund adopted Statement of Position (SOP)
93-4: Foreign Currency Accounting and Financial Statement Presentation for
Investment Companies. In accordance with this SOP, reported net realized
gains and losses on foreign currency transactions represent net gains and
losses from sales and maturities of forward currency contracts ,
disposition of foreign currencies, currency gains and losses realized
between the trade and settlement dates on securities transactions, and the
difference between the amount of net investment income accrued and the U.S.
dollar amount actually received. Further, as permitted under the SOP, the
effects of changes in foreign currency exchange rates on investments in
securities are not segregated in the Statement of Operations from the
effects of changes in market prices of those securities, but are included
with the net realized and unrealized gain or loss on investments.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to U.S. federal
income taxes to the extent that it distributes all of its taxable income
for its fiscal year. By so qualifying, the fund may be subject to foreign
taxes on income, gains on investments or currency repatriation. The fund
accrues such taxes as applicable. The schedule of investments includes
information regarding income taxes under the caption "Income Tax
Information."
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
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 uncertain.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are declared daily and paid
monthly from net investment income. 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
basis differences relating to shareholder distributions will result in
reclassifications to paid in capital.
If the fund's dividends exceed its taxable income in any year, as a result
of currency losses or otherwise, all or a portion of the fund's dividends
may be treated as a return of capital. Any return of capital will be
reported to shareholders on their annual tax statement in January.
For the period ended June 30, 1994, the fund's dividends from net
investment income exceeded its taxable income after deducting realized
currency losses. If these losses are not offset by additional income or
gains before the fund's fiscal year end, a portion of the fund's dividends
will be treated as a return of capital to shareholders.
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
2. OPERATING POLICIES - CONTINUED
FORWARD FOREIGN CURRENCY
CONTRACTS - CONTINUED
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 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 $15,645,307 or 3.0% of net assets.
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.
3. JOINT TRADING ACCOUNT.
At the end of the period, the fund had 20% or more of its total investments
in repurchase agreements through a joint trading account. These repurchase
agreements were with entities whose creditworthiness has been reviewed and
found satisfactory by FMR. The repurchase agreements were dated June 30,
1994 and due July 1, 1994. The maturity values of the joint trading account
investments were $109,131,003 at 4.29%. The investments in repurchase
agreements through the joint trading account are summarized as follows:
SUMMARY OF JOINT TRADING

Number of dealers or banks 23
Maximum amount with one dealer or bank 11.9%
Aggregate principal amount of agreements $13,660,719,000
Aggregate maturity amount of agreements $13,662,347,871
Aggregate market value of collateral $13,947,398,451
Coupon rates of collateral 3 7/8% to 14%
Maturity dates of collateral 7/15/94 to 8/15/23
4. PURCHASES AND SALES OF
INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $772,028,263 and $915,616,023, respectively.
The market value of futures contracts opened and closed amounted to
$25,007,746 and $24,316,941, 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 JPY:
Outstanding at January 1, 1994 - -
Contracts opened 1 $ 4,690,542
Contracts closed 1 (4,690,542)
Outstanding at June 30, 1994 - $ -
5. 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
.72% of average net assets.
The Board of Trustees previously approved a group fee rate schedule with
5. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
MANAGEMENT FEE - CONTINUED
rates ranging from .1325% to .3700% Effective November 1, 1993, FMR
voluntarily agreed to implement this new group fee rate schedule as it
resulted in the same or a lower management fee. In July 1994, the Board of
Trustees approved a new group fee rate schedule with rates ranging from
.12% to .37%. Effective August 1, 1994, FMR has voluntarily agreed to
implement this new group fee rate schedule as it results in the same or a
futher reduction 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. FMR or FDC has informed the fund that
payments made to third parties under the Plan amounted to $24,633 for the
period.
TRANSFER AGENT FEES. 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 FEES. FSC maintains the fund's accounting records. The fee is
based on the level of average net assets for the month plus out-of-pocket
expenses.
6. INTERFUND LENDING PROGRAM.
The fund participated in the interfund lending program as a lender. The
maximum loan and the average daily loan balances during the periods for
which loans were outstanding amounted to $16,919,000. The weighted average
interest rate was 4.0%. Interest earned from the interfund lending program
amounted to $1,903 and is included in interest income on the Statement of
Operations.
7. 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 $16,475,000 and $7,489,250,
respectively. The weighted average interest rate was 3.8%.
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you call. If you forget your PIN, please
call a Fidelity representative at 1-800-
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INVESTMENT IN
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TOTAL
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE, REINVESTMENT OF
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ARIZONA
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FLORIDA
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Ft. Lauderdale, FL
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GEORGIA
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HAWAII
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ILLINOIS
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MAINE
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MARYLAND
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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
Thomas J. Steffanci, Vice President
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, 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
Chase Manhattan Bank, N.A.
New York, NY
FIDELITY'S TAXABLE BOND FUNDS
Capital & Income Fund
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Global Bond Fund
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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
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TDD Service 1-800-544-0118
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* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE

(2_FIDELITY_LOGOS)FIDELITY

NEW MARKETS INCOME
FUND
SEMIANNUAL REPORT
JUNE 30, 1994
CONTENTS

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

PERFORMANCE 4 How the fund has done over time.

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

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

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

FINANCIAL STATEMENTS 18 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 22 Notes to the financial statements.

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 dividends and yields.
CUMULATIVE TOTAL RETURNS
PERIOD ENDED JUNE 30, 1994 PAST 6 PAST 1 LIFE OF
MONTHS YEAR FUND

New Markets Income -24.63% -2.30% 4.65%

J.P. Morgan Emerging Markets Bond -19.94% -1.83% n/a
Index

Average General World Income Fund -6.90% 0.34% n/a

Consumer Price Index 1.51% 2.49% 2.78%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, or 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
125 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 CPI returns begin on the month
end closest to the fund's start date.)
AVERAGE ANNUAL TOTAL RETURNS
PERIOD ENDED JUNE 30, 1994 PAST 1 LIFE OF
YEAR FUND

New Markets Income -2.30% 4.00%

J.P. Morgan Emerging Markets Bond Index -1.83% n/a

Average General World Income Fund 0.34% n/a

Consumer Price Index 2.49% 2.38%

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
19930531 10000.00 10000.00
19930630 10397.83 10350.00
19930731 10924.43 10781.60
19930831 11248.31 10998.31
19930930 11606.78 11142.38
19931031 12523.77 12081.69
19931130 12661.08 11960.87
19931231 13478.16 12691.68
19940131 13983.39 12725.95
19940228 12575.86 11667.15
19940331 10685.31 10332.43
19940430 10235.00 10337.59
19940531 10771.76 11050.89
19940630 10158.90 10161.29

$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 June 30, 1994, the value of your investment would have
grown to $10,159 - a 1.59% 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 $10,161 - a 1.61% 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 JUNE 30, 1994 PAST PAST 6 PAST 1
MONTH MONTHS YEAR

Dividends per share 4.59(cents) 26.39(cents) 68.32(cents)

Annualized dividend rate 5.67% 4.79% 5.96%

30-day annualized yield 8.60% - -

DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on the fund's average share price of $9.85
over the past month, $11.10 over the past six months and $11.46 over the
past year, you can compare the fund's income over these three periods.
Dividends per share are based on the fund's net investment income and do
not include gains or losses from currency transactions. Hovever, because
the fund has realized currency losses that will offset income for tax
purposes, a portion of the dividends for the past six months may be
non-taxable to shareholders. The tax status of the fund's dividends will be
calculated at the close of the year and reported to shareholders on the
annual tax statement in January.
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. It does not reflect the cost of hedging and other
currency gains and losses.
FUND TALK: THE MANAGER'S OVERVIEW

An interview with Robert Citrone, Portfolio Manager of Fidelity New Markets
Income Fund
Q. ROB, HOW HAS THE FUND PERFORMED?
A. Emerging markets suffered severe corrections in the first half of 1994,
which are reflected in the fund's returns. For the six months ended June
30, 1994, the fund had a total return of -24.63%. During the same period,
the average general world income fund returned -6.90%, according to Lipper
Analytical Services. The fund fell 2.30% for the 12 months ended June 30,
while the average fund rose 0.34%. I think it's important to note that the
fund has under-performed its Lipper average so far in 1994 for the same
reason it out-performed the average in 1993: it invests mainly in emerging
markets and many other funds in the group don't share that same objective.
For another comparison, we can look at the J.P. Morgan Emerging Markets
Bond Index, which had a total return of -19.94% for the six months ended
June 30, 1994, and -1.83% for the prior 12 months.
Q. BEFORE WE TAKE A CLOSER LOOK AT THE FUND'S RECENT RETURNS, LET'S REVIEW
WHAT HAS HAPPENED IN THE EMERGING MARKETS IN 1994.
A. To put it simply, most of the world's bond markets fell dramatically
over the past six months, and emerging markets suffered the biggest drop.
The sell-off began in early February, when the Federal Reserve Board raised
short-term interest rates in the United States. The correction accelerated
in the emerging markets, in part, because so many investors in these
markets were investing mostly with borrowed money. When bond yields rose -
and prices fell - many of these investors couldn't hold onto their
positions and had to sell.
Q. WHY DID THE FUND UNDER-PERFORM THE EMERGING MARKETS INDEX?
A. Over most of the past six months, the fund had roughly a 20% stake in
what I call pre-Brady countries, which had the worst performing debt among
emerging market nations. These are countries such as Ecuador, Panama, Peru
and Poland, which are trying to restructure their economies. To do that
they have to consolidate their outstanding debt. The process involves
converting that debt into dollar-denominated bonds, called Brady bonds,
which are partially backed by U.S. government securities. Once the deal
goes through, these bonds become more valuable in the marketplace, which
makes these investments attractive.
Q. WHAT CAUSED THE DEBT OF THE PRE-BRADY COUNTRIES TO FALL SO HARD DURING
THE CORRECTION?
A. The Brady process allows these countries to receive a significant
reduction not only in their debt servicing costs, but also in their amount
of debt outstanding. This is called the amount of "forgiveness." In the
midst of Poland's Brady deal, the country received a much higher level of
forgiveness than the market anticipated. This resulted in a short-term drop
in the value of Poland's debt, and accelerated the sell-off of other
pre-Brady debt. In addition, these investments are among the riskiest in
the emerging markets. When the broad correction began in February,
investors fled in larger numbers for investments that appeared more stable.
Most of my pre-Brady investments fell 40% to 50% in value over the past
several months.
Q. WHAT MAKES THESE SECURITIES RISKIER THAN OTHERS IN THE FUND?
A. Two big factors. First, you're investing in less-developed countries,
where political and economic instability is often a fact of life. That can
result in heightened volatility. Second, you have "deal risk." That's the
risk that the Brady deal may not go through. However, the market normally
rewards investors with higher returns for assuming these increased risks.
Q. WERE THERE ANY OTHER FACTORS THAT CAUSED THE FUND TO LAG THE INDEX?
A. Yes, the fund had a large amount of redemptions from shareholders once
the markets began falling. Its assets fell from more than $350 million at
the end of January to less than $150 million by the end of March. To meet
those redemptions, I had to sell some of the fund's investments in a
falling market, which is costly to do. In addition, when a player the size
of Fidelity begins selling in emerging markets, it can substantially push
down bond prices, which decreases the value of the fund's remaining
investments.
Q. THERE'S BEEN A LOT OF TALK LATELY ABOUT DERIVATIVES. WHAT ARE THEY AND
DO YOU USE THEM IN THE FUND?
A. In a broad sense, derivatives are financial arrangements whose prices
are derived from other securities, currencies or indices. There are many
kinds of derivatives and the fund has the flexibility to use some of them
when I feel that they can add value. I have used forward foreign currency
contracts to manage - increase or decrease - the fund's exposure to various
foreign currencies. The fund also usually has a small investment in indexed
securities, or structured notes, linked mainly to foreign interest rates or
currencies. These indexed securities are like customized bonds, and let me
design investments that target the specific combination of market and
currency exposure I believe the fund needs. Over the past six months, for
example, the fund owned a small stake in indexed securities tied to the
Mexican peso. Unfortunately, these securities performed poorly when the
peso fell amid the turmoil surrounding the assassination of the country's
leading presidential candidate last spring. I also have bought or written
options on bonds to try to enhance the fund's return.
Q. LET'S FAST FORWARD TO THE FUTURE. WHAT'S YOUR OUTLOOK?
A. I'm positive. It's important to keep in mind that emerging market bond
prices fell recently for several reasons, but deteriorating political and
economic conditions in these countries were not among them. Several nations
in which the fund invests are taking positive steps toward bettering their
economies and stabilizing their governments. That's one reason I think
there's potential for solid price gains in emerging market bonds. In
addition, yields have reached such high levels that even if "spreads" - the
difference in yield between these bonds and U.S. Treasuries - remain at
wide levels and Treasuries remain flat, these markets would return in
excess of 10% over the next 12 months. Emerging market bonds also may
receive a boost from the outcome of elections in Mexico and Brazil this
year; I'll be watching closely how they shape up. And finally, U.S.
interest rates are a factor. If they stabilize over the next several
months, I think it will help calm jittery emerging markets investors.
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 June 30, 1994,
more than $164 million
MANAGER: Robert Citrone,
since May 1993; manager,
Fidelity Advisor Emerging
Markets Income Fund since
March 1994; strategist,
emerging markets
fixed-income investments,
since 1990; joined Fidelity in
1990
(checkmark)
ROB CITRONE ON THE FUND'S
SHIFTING STRATEGY:
"Over the past six months,
I've increased the fund's
stake in Brazil from 14% to
27%, and decreased its stake
in Mexico from 14% to 6%.
Both countries have elections
coming up later this year. In
Brazil, Lula - a left-wing
candidate who appears to
oppose important economic
reforms - is running against
Cordoso - the country's
former economic minister who
recently put together a plan to
fight inflation. I think that bond
yields in Brazil reflect, in part,
investors' fear that Lula is
likely to win, which could
hamper reform efforts. But I
think as the election draws
closer, a Cordosa win could
become more likely, which
may drive up bond prices.
``There's not as much risk in
the Mexican elections. It
appears the PRI candidate,
Zedillo, stands an excellent
chance of winning, and his
economic policies appear
solid. But then, the potential
for rising bond prices is not as
great in Mexico as it is in
Brazil. If I see these situations
changing, I may shift
investments out of Brazil and
back into Mexico, which tends
to be a less volatile market."
INVESTMENT CHANGES

TOP COUNTRIES AS OF JUNE 30, 1994

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

Brazil 27 14

Argentina 23 29

Ecuador 8 3

Poland 7 1

Mexico 6 14

</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 JUNE 30 WAS IN SECURITIES OF BRAZILIAN
ISSUERS.
CURRENCY EXPOSURE AS OF JUNE 30, 1994
(ESTIMATED, BY CURRENCY) % OF FUND'S NET ASSETS % OF NET ASSETS
SIX MONTHS AGO

U.S. dollar 61 71

Mexican peso 19 4

Brazilian cruzeiro 18 7

Argentinian peso 2 14

South African rand 0 2

ESTIMATED CURRENCY EXPOSURES INCLUDE THE IMPACT OF HEDGING, WHICH REDUCES
FOREIGN CURRENCY RISK AND INCREASES THE FUND'S U.S. DOLLAR POSITION. THE
MEXICAN PESO, AT APPROXIMATELY 19% OF ASSETS, WAS THE FUND'S LARGEST
FOREIGN CURRENCY EXPOSURE AS OF JUNE 30.
AVERAGE MATURITY AS OF JUNE 30, 1994
SIX MONTHS AGO

Years 10.1 10.5

THIS IS THE AVERAGE MATURITY OF THE BONDS IN THE FUND'S PORTFOLIO, WEIGHTED
BY DOLLAR AMOUNT.
ASSET ALLOCATION
AS OF JUNE 30, 1994 AS OF DECEMBER 31, 1993
Row: 1, Col: 1, Value: 28.8
Row: 1, Col: 2, Value: 10.4
Row: 1, Col: 3, Value: 47.1
Row: 1, Col: 4, Value: 13.7
Corporate bonds 13.7%
Government
obligations 47.1%
Common stocks 10.4%
Short-term and
other investments 28.8%
Corporate bonds 18.5%
Government
obligations 54.3%
Common stocks 6.0%
Short-term and
other investments 21.2%
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
INVESTMENTS JUNE 30, 1994 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

CORPORATE BONDS - 13.7%
MOODY'S RATINGS (C) PRINCIPAL VALUE (NOTE 1)
AMOUNT (A)
CONVERTIBLE BONDS - 3.4%
INDIA - 0.2%
Industrial Credit & Investment Corp. 2 1/2%,
4/3/00 (g) - 70,000 $ 60,200
Scici Ltd. euro 3 1/2%, 4/1/04 (g) - 270,000 336,150
396,350
INDONESIA - 1.5%
Indorayon euro 7%, 5/2/06 BB 2,500,000 2,325,000
PHILIPPINES - 1.7%
International Container Term Services, Inc.
unsecured 6%, 2/19/00 (g) -- 2,000,000 2,600,000
TOTAL CONVERTIBLE BONDS 5,321,350
NONCONVERTIBLE BONDS - 10.3%
ARGENTINA - 2.8%
Alpargatas SA euro 9%, 3/15/98 (g) -- 4,881,000 4,441,710
BRAZIL - 1.9%
Telebras 17 1/2%, 7/1/05 (c)(h) - BRC 132,858 2,913,678
INDONESIA - 1.5%
Indorayon Yankee 9 1/8%, 10/15/00 BB 2,750,000 2,365,000
MEXICO - 4.1%
Bancomer SA 9%, 6/1/00 (g) -- 1,500,000 1,473,750
First Mexican Acceptance Corp. euro 10 3/4%,
9/15/96 -- 2,000,000 2,045,680
Third Mexican Acceptance Corp. coll. notes gtd.
by Grupo Sidek SA and Grupo Situr SA
10 1/2%, 3/15/98 (g) -- 250,000 246,250
Tribasa Toll Road Trust 10 1/2%, 12/1/11 (g) -- 3,000,000 2,670,000
6,435,680
TOTAL NONCONVERTIBLE BONDS 16,156,068
TOTAL CORPORATE BONDS
(Cost $21,732,280) 21,477,418
GOVERNMENT OBLIGATIONS (K) - 47.1%
MOODY'S RATINGS (C) PRINCIPAL VALUE (NOTE 1)
AMOUNT (A)
ARGENTINA - 15.2%
Argentina Republic:
BOCON:
3 1/4%, 4/1/01 B1 $ 7,105,625 $ 4,865,243
3.1875%, 9/1/02 -- 25,690,451 15,496,532
Brady euro 4%, 3/31/23 B1 1,500,000 740,625
Province of Cordoba, 10%, 1/28/95 (f) -- 2,712,500 2,648,214
23,750,614
BRAZIL - 21.0%
Brazil Federative Republic:
euro 5 1/4%, 4/15/12 (h) -- 10,250,000 4,920,000
8%, 4/15/14 B2 19,000,000 7,671,250
Siderurgica Brasileiras SA inflation indexed 6%,
8/15/99 (c)(i) -- BRC 166,037 20,138,916
32,730,166
JORDAN - 3.3%
Jordan Government (g):
par 4%, 12/23/23 (e) -- 7,030,216 3,304,201
par euro 4%, 12/23/23 (e) -- 1,000,000 470,000
discount 5.8125%, 12/23/23 (h) -- 1,000,000 685,000
interest arrears euro 0% (h) -- 1,000,000 715,000
5,174,201
MEXICO - 1.2%
Mexican Government Brady 6.63%, 12/31/19 Ba2 FRF 16,500,000 1,848,825
MOROCCO - 0.9%
Morocco Trust 4 1/2%, 1/3/09 (g)(h) -- 2,000,000 1,435,000
NIGERIA - 5.1%
Central Bank of Nigeria promissory note
5.092%, 1/5/10 - 29,500,000 8,080,433
PHILIPPINES - 0.4%
Republic of Philippines 5 1/4%, 12/1/17 -- 1,000,000 625,000
TOTAL GOVERNMENT OBLIGATIONS
(Cost $83,133,088) 73,644,239
COMMON STOCKS - 10.4%
SHARES VALUE (NOTE 1)

ARGENTINA - 5.3%
Alpargatas SA Industrias Y Comercial (Reg.) (a) 1,580,000 $ 1,171,949
Banco de Galicia Y Buenos Aires SA sponsored ADR
representing Class B shares (a) 26,000 705,250
Banco del Sud SA 26,800 394,923
Banco Frances del Rio PL (For. Reg.) 94,500 710,420
Terrabusi Class B (a) 104,000 489,951
YPF Sociedad Anonima D shares 206,268 4,900,068
8,372,561
BRAZIL - 4.3%
Compania Siderurgica Nacional (a) 76,200,000 1,967,373
Minas Gerais State (warrants) (a) 7,100 369,200
Telebras PN (Reg.) (a) 115,000 4,328,177
6,664,750
MEXICO - 0.5%
Fondo Opcion SA de CV Class 2, Series B (a) 322,000 837,178
TURKEY - 0.3%
Turkiye Garanti Bankasi ADR (a)(g) 325,000 455,000
TOTAL COMMON STOCKS
(Cost $17,597,867) 16,329,489
OTHER SECURITIES - 28.8%
PRINCIPAL
AMOUNT (B)
COLLATERALIZED NOTES - 0.3%
MEXICO - 0.3%
Ridgefield Investments Ltd. sub. participating
notes 0%, 2/2/95 (residual interest in Mexican
gov't securities collateral) (g) $ 5,306,276 $ 527,444
OTHER SECURITIES - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (B)
INDEXED SECURITIES - 0.7%
UNITED STATES OF AMERICA - 0.7%
Morgan Guaranty Trust Co.:
cert. of dep. 2.967%, 7/25/94 (indexed to the
change in yield on Argentine Par Bonds) $ 2,110,833 $ 89,795
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) 1,000,000 994,500
TOTAL INDEXED SECURITIES 1,084,295
PURCHASED BANK DEBT - 27.8%
ECUADOR - 7.8%
Republic of Ecuador (a):
loan participation under 1983 and 1984
extension and refinancing agreements 8,000,000 3,320,000
loan participation under 1985
multi-year refinancing agreement (c) JPY 1,200,000 4,140,000
loan participation 0% 9,522,121 4,761,061
12,221,061
JAMAICA - 0.4%
Government of Jamaica amortizing loan
participation 4.0625%, 10/15/00 (h) 902,439 749,024
PANAMA - 4.5%
Republic of Panama :
loan participation under refinancing
agreement 0% (a) 4,000,000 2,020,000
loan participation 0% (a) 10,000,000 4,950,000
6,970,000
PERU - 2.1%
Empressa de Electricidad del Peru SA loan
participation 0% (a) 7,750,000 3,255,000
POLAND - 7.1%
Polish People's Republic:
loans under 1988 restructuring agreement
0% (h)(j) CHF 28,999,999 8,100,558
past due interest CHF 10,970,451 3,064,372
11,164,930
OTHER SECURITIES - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (B)
PURCHASED BANK DEBT - CONTINUED
RUSSIA - 2.7%
International Bank for Economic Cooperation
loan participation (a) $ 14,500,000 $ 4,205,000
TRINIDAD AND TOBAGO - 2.5%
Republic of Trinidad & Tobago loan participation:
Tranche A, 7 1/8%, 9/30/00 (c)(h) JPY 277,063 2,136,656
Tranche B, 7 1/8%, 9/30/00 (c)(h) JPY 229,125 1,801,845
3,938,501
VIETNAM - 0.7%
Socialist Republic of Vietnam loans restructured
under 1985 agreement (a) DEM 2,500,000 1,055,151
TOTAL PURCHASED BANK DEBT 43,558,667
TOTAL OTHER SECURITIES
(Cost $56,356,713) 45,170,406
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $178,819,948) $ 156,621,552
FORWARD FOREIGN CURRENCY CONTRACTS
SETTLEMENT UNREALIZED
DATE(S) VALUE GAIN/(LOSS)
CONTRACTS TO BUY
329,776,750 BEF 7/18/94 $ 10,084,990 $ 501,205
1,627,242,500 JPY 7/5/94 16,517,354 453,185
TOTAL CONTRACTS TO BUY
(Payable amount $25,647,954) $ 26,602,344 954,390
THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 17.0%
FORWARD FOREIGN CURRENCY CONTRACTS - CONTINUED
UNREALIZED
SETTLEMENT GAIN/ DATE(S) VALUE (LOSS)
CONTRACTS TO SELL
458,959,126 BEF 7/18/94 $ 14,035,551 $ (1,062,350)
9,893,800 CHF 12/8/94 7,444,489 (444,499)
1,358,009 DEM 7/19/94 855,222 (63,703)
187,880,000 ESP 7/18/94 1,430,192 (92,682)
2,434,369,000 JPY 7/5/94 to 9/8/94 24,751,518 (892,767)
TOTAL CONTRACTS TO SELL
(Receivable amount $45,960,971) $ 48,516,972 (2,556,001)
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 31.0%
$ (1,601,611)
CURRENCY ABBREVIATIONS
BEF - Belgian franc
BRC - Brazilian cruzeiro
FRF - French franc
DEM - German Deutsche mark
JPY - Japanese yen
ESP - Spanish peseta
CHF - Swiss franc
LEGEND
1. Non-income producing
2. Principal amount is stated in United States dollars unless otherwise
noted.
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. The coupon rate shown will convert to a fixed rate at a specified time.
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
Province of Cordoba
10%, 1/28/95 1/27/94 $ 3,000,000

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 $19,419,705 or 11.8% of net
assets.
8. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
9. Principal amount shown is original face amount and does not reflect the
inflation adjustments.
10. Partial interest payment received on the last interest payment date.
11. Most foreign government obligations have not been individually rated by
S&P and Moody's. The ratings listed are assigned to securities by FMR, the
fund's investment advisor, based principally on S&P and Moody's ratings of
the sovereign credit of the issuing government.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 0.0% AAA, AA, A 0.0%
Baa 0.0% BBB 0.0%
Ba 2.4% BB 2.6%
B 8.1% 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 72.4% including long-term debt
categorized as other securities. FMR has determined that unrated debt
securities that are lower quality account for 24.5% of the total value of
investment in securities.
INDUSTRY DIVERSIFICATION
As a Percentage of Total Value of Investment in Securities (Unaudited)
Basic Industries 5.9%
Construction & Real Estate 2.2
Durables 3.5
Energy 3.1
Finance 16.6
Government Obligations 62.4
Media & Leisure 1.3
Nondurables 0.3
Utilities 4.7
100.0%
INCOME TAX INFORMATION
At June 30, 1994, the aggregate cost of investment securities for income
tax purposes was $178,819,948. Net unrealized depreciation aggregated
$22,198,396, of which $2,648,233 related to appreciated investment
securities and $24,846,629 related to depreciated investment securities.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JUNE 30, 1994 (UNAUDITED)

ASSETS

Investment in securities, at value (cost $178,819,948) $ 156,621,552
(Notes 1 and 2) - See accompanying schedule

Cash 5,137,326

Receivable for investments sold 69,145,524

Unrealized appreciation on foreign currency contracts (Note 2) 954,390

Interest receivable 3,063,143

Receivable from investment adviser for expense reductions (Note 51,071
7)

TOTAL ASSETS 234,973,006

LIABILITIES

Payable for investments purchased $ 58,596,288

Unrealized depreciation on foreign currency contracts (Note 2) 2,556,001

Payable for fund shares redeemed 2,810,453

Dividends payable 103,665

Accrued management fee 123,845

Interfund loan payable (Note 5) 6,083,000

Other payables and accrued expenses 482,137

TOTAL LIABILITIES 70,755,389

NET ASSETS $ 164,217,617

Net Assets consist of (Note 1):

Paid in capital $ 208,080,034

Undistributed net investment income 1,121,017

Accumulated undistributed net realized gain (loss) on (20,425,113)
investments and foreign currency transactions

Net unrealized appreciation (depreciation) on investments and (24,558,321)
assets and liabilities in foreign currencies

NET ASSETS, for 17,335,880 shares outstanding $ 164,217,617

NET ASSET VALUE, offering price and redemption price per $9.47
share ($164,217,617 (divided by) 17,335,880 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JUNE 30, 1994 (UNAUDITED)

INVESTMENT INCOME $ 155,146
Dividends

Interest 7,231,823

7,386,969

Less foreign taxes withheld (6,887)

TOTAL INCOME 7,380,082

EXPENSES

Management fee (Note 4) $ 823,674

Transfer agent fees (Note 4) 610,433

Accounting fees and expenses (Note 4) 70,222

Non-interested trustees' compensation 705

Custodian fees and expenses 220,694

Registration fees 55,102

Audit 30,744

Legal 619

Interest (Notes 5 and 6) 89,984

Miscellaneous 1,058

Total expenses before reductions 1,903,235

Expense reductions (Note 7) (439,628) 1,463,607

NET INVESTMENT INCOME 5,916,475

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

Investment securities (16,001,685)

Foreign currency transactions (3,371,840)

Written options 325,498 (19,048,027)

Change in net unrealized appreciation (depreciation) on:

Investment securities (43,245,486)

Written options (54,250)

Assets and liabilities in foreign currencies (2,487,587) (45,787,323)

NET GAIN (LOSS) (64,835,350)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM $ (58,918,875)
OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS MAY 4, 1993
ENDED JUNE 30, (COMMENCEMENT
1994 OF
(UNAUDITED) OPERATIONS) TO
DECEMBER 31,
1993

INCREASE (DECREASE) IN NET ASSETS

Operations $ 5,916,475 $ 4,780,694
Net investment income

Net realized gain (loss) (19,048,027) 11,898,915

Change in net unrealized appreciation (depreciation) (45,787,323) 21,229,002

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (58,918,875) 37,908,611
FROM OPERATIONS

Distributions to shareholders: (4,414,254) (4,780,694)
From net investment income

In excess of net investment income (1,033,956) (740,943)

From net realized gain (5,385,204) (3,248,513)

TOTAL DISTRIBUTIONS (10,833,414) (8,770,150)

Share transactions 429,634,335 484,045,051
Net proceeds from sales of shares

Reinvestment of distributions 9,508,826 7,873,635

Cost of shares redeemed (491,766,366) (234,464,036)

Net increase (decrease) in net assets resulting from (52,623,205) 257,454,650
share transactions

TOTAL INCREASE (DECREASE) IN NET ASSETS (122,375,494) 286,593,111

NET ASSETS

Beginning of period 286,593,111 -

End of period (including under (over) distribution of net $ 164,217,617 $ 286,593,111
investment income of $1,121,017 and $(119,792),
respectively)

OTHER INFORMATION
Shares

Sold 37,586,404 40,919,744

Issued in reinvestment of distributions 785,360 631,354

Redeemed (42,956,007) (19,630,975)

Net increase (decrease) (4,584,243) 21,920,123

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED MAY 4, 1993
JUNE 30, 1994 (COMMENCEMENT OF
(UNAUDITED) OPERATIONS) TO
DECEMBER 31,
1993

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 13.070 $ 10.000

Income from Investment Operations .334 .486E
Net investment income

Net realized and unrealized gain (loss) (3.470) 3.302

Total from investment operations (3.136) 3.788

Less Distributions (.214) (.486)
From net investment income

In excess of net investment income (.050) (.062)

From net realized gain on investments (.200) (.170)

Total distributions (.464) (.718)

Net asset value, end of period $ 9.470 $ 13.070

TOTAL RETURNB, D (24.63)% 38.84%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 164,218 $ 286,593

Ratio of expenses to average net assetsC 1.28%A 1.24%A

Ratio of expenses to average net assets before 1.66%A 1.68%A
expense reductionsC

Ratio of net investment income to average net 5.17%A 6.29%A
assets

Portfolio turnover rate 472%A 324%A

</TABLE>

A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C SEE NOTE 7 OF NOTES TO FINANCIAL STATEMENTS.
D THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
E NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
NOTES TO FINANCIAL STATEMENTS
For the period ended June 30, 1994 (Unaudited)

1. SIGNIFICANT ACCOUNTING
POLICIES.
Fidelity New Markets Income (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 and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Purchases and
sales of securities, income receipts, and expense payments are translated
into U.S. dollars at the prevailing exchange rate on the respective dates
of the transactions.
Effective January 1, 1994, the fund adopted Statement of Position (SOP)
93-4: Foreign Currency Accounting and Financial Statement Presentation for
Investment Companies. In accordance with this SOP, reported net realized
gains and losses on foreign currency transactions represent net gains and
losses from sales and maturities of forward currency contracts and foreign
currency options written, disposition of foreign currencies, currency gains
and losses realized between the trade and settlement dates on securities
transactions, and the difference between the amount of net investment
income accrued and the U.S. dollar amount actually received. Further, as
permitted under the SOP, the effects of changes in foreign currency
exchange rates on investments in securities are not segregated in the
Statement of Operations from the effects of changes in market prices of
those securities, but are included with the net realized and unrealized
gain or loss on investments.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to U.S. federal
income taxes to the extent that it distributes all of its taxable income
for its fiscal year. By so qualifying, the fund may be subject to foreign
taxes on income, gains on investments or currency repatriation. The fund
accrues such taxes as applicable. The schedule of investments includes
information regarding income taxes under the caption "Income Tax
Information."
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
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 uncertain.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are declared daily and paid
monthly from net investment income. 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. The fund also utilized
earnings and profits distributed to shareholders on redemption of shares as
a part of the dividends paid deduction for income tax purposes.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital.
Undistributed net investment income may include temporary book and tax
basis differences which will reverse in a subsequent period. Any taxable
income or gain remaining at fiscal year end is distributed in the following
year.
For the period ended June 30, 1994, the fund's dividends from net
investment income exceeded its taxable income after deducting realized
currency losses. If these losses are not offset by additional income or
gains before the fund's fiscal year end, a portion of the fund's dividends
will be treated as a return of capital to shareholders.
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
2. OPERATING POLICIES - CONTINUED
FORWARD FOREIGN CURRENCY
CONTRACTS.- CONTINUED.
and any realized gain (loss) is recognized on the date of offset, otherwise
gain (loss) is recognized on settlement date.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. The fund's investment
adviser, Fidelity Management & Research Company (FMR), is responsible for
determining that the value of these underlying securities remains at least
equal to the resale price.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission (the SEC), the fund, along with other
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 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
2. OPERATING POLICIES - CONTINUED
RESTRICTED SECURITIES.- CONTINUED.
prompt sale at an acceptable price may be difficult. At the end of the
period, restricted securities (excluding 144A issues) amounted to
$2,648,214 or 1.6% of net assets.
3. PURCHASES AND SALES
OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $463,482,212 and $528,059,762, 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 Venezuela discount bonds 0%, 12/18/07:
Outstanding at December 31, 1993 1 $ 15,500,000
Contracts opened -- -- Contracts expired (1) (15,500,000)
Outstanding at June 30, 1994 - $ -

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
.72% of average net assets.
The Board of Trustees previously approved a group fee rate schedule with
rates ranging from .1325% to .3700%. Effective November 1, 1993, FMR
voluntarily implemented this group fee
rate schedule as it resulted in the same or lower management fee. In July
1994, the Board of Trustees approved a new group fee rate schedule with
rates ranging from .12% to .37%. Effective August 1, 1994, FMR has
voluntarily agreed to implement this new group fee rate schedule as it
results in the same or a further reduction in the 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
4. FEES AND OTHER
TRANSACTIONS WITH AFFILIATES - CONTINUED
SUB-ADVISER FEE- CONTINUED.
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. FMR or FDC has informed the fund that no
payments were made to third parties under the Plan.
TRANSFER AGENT FEES. 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 FEES. FSC maintains the fund's accounting records. The fee is
based on the level of average net assets for the month plus out-of-pocket
expenses.
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 $ 61,041,000 and $ 19,567,737,
respectively. The weighted average interest rate was 2.91%. Interest
expense includes $49,612 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 $39,000,000 and $18,928,263,
respectively. The weighted average interest rate was 4.13%. Interest
expense includes $40,372 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 $439,628.
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, as well as the
fund's ability to repatriate such amounts.
TO CALL FIDELITY

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P.O. Box 660602
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TO VISIT FIDELITY

INVESTMENT ADVISER
Fidelity Management & Research
Company
Boston, MA
INVESTMENT SUB-ADVISERS
Fidelity Management & Research
(U.K.) Inc. London, England
Fidelity Management & Research
(Far East) Inc. Tokyo, Japan
Fidelity International Investment
Advisors
Fidelity International Investment
Advisors (U.K.) Limited
Fidelity Investments Japan Limited
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Michael Gray, Vice President
Thomas J. Steffanci, Vice President
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, 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
Chase Manhattan Bank, N.A.
New York, NY
FIDELITY'S TAXABLE BOND FUNDS
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Ginnie Mae Portfolio
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Government Securities Fund
Intermediate Bond Fund
Investment Grade Bond Fund
Mortgage Securities Portfolio
New Markets Income Fund
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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
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(8 a.m. - 9 p.m.)
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for the deaf and hearing impaired
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* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE

(2_FIDELITY_LOGOS)FIDELITY

SHORT-TERM WORLD INCOME
FUND
SEMIANNUAL REPORT
JUNE 30, 1994
CONTENTS

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

PERFORMANCE 4 How the fund has done over time.

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

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

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

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

NOTES 23 Notes to the financial statements.

REPORT OF INDEPENDENT 28 The auditor's opinion.
ACCOUNTANTS

Short-Term World Income -5.60% -0.41% 12.67%

Lehman Brothers 1-3 Year
Government Bond Index -0.49% 1.52% n/a

Average Short World Multi-Market
Income Fund -2.82% -0.80% n/a

Consumer Price Index 1.51% 2.49% 7.87%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, 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 exclude sales charges. Comparing
the fund's performance to the Consumer Price Index helps show how your fund
did compared to inflation. (The CPI returns begin on the month- end closest
to the fund's start date.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JUNE 30, 1994 PAST 1 LIFE OF
YEAR FUND

Short-Term World Income -0.41% 4.45%

Lehman Brothers 1-3 Year Government Bond Index 1.52% n/a

Average Short World Multi-Market Income Fund -0.80% n/a

Consumer Price Index 2.49% 2.79%

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

Short-Term World Income Fund (465)LB 1-3 Year Govt. Index
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
01/31/94 11890.82 11558.99
02/28/94 11700.79 11488.48
03/31/94 11369.98 11429.89
04/30/94 11248.01 11386.45
05/31/94 11417.36 11402.39
06/30/94 11157.62 11430.90

$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 June 30, 1994, the value of your investment
would have grown to $11,158 - an 11.58% 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 $11,431- a 14.31% 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 JUNE 30, 1994 PAST 30 PAST 6 PAST 1
DAYS MONTHS YEAR

Dividends per share 5.25(cents) 33.88(cents) 71.22(cents)

Annualized dividend rate 6.80% 7.01% 7.16%

30-day annualized yield 7.31% - -

DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on the fund's average share price of $9.39
over the past month, $9.75 over the past six months and $9.95 over the past
year, you can compare the fund's income over these three periods.
Dividends per share are based on the fund's net investment income and do
not include gains or losses from currency transactions. However, because
the fund has realized currency losses that will offset income for tax
purposes, a portion of the dividends for the past six months may be
non-taxable to shareholders. The tax status of the fund's dividends will be
calculated at the close of the year and reported to shareholders on the
annual tax statement in January.
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. It does not reflect the cost of hedging and other
currency gains and losses.
FUND TALK: THE MANAGER'S OVERVIEW

An interview with Scott Kuldell, Portfolio Manager of Fidelity Short-Term
World Income
Q. SCOTT, HOW DID THE FUND PERFORM?
A. The fund's total return for the six months ended June 30, 1994, was
- -5.60%. That was below the -2.82% return for the average short world
multi-market income fund during the same period, according to Lipper
Analytical Services. The 12-month comparison looks a little better with the
fund returning -0.41% versus -0.80% for the Lipper average.
Q. WHY DID THE FUND TRAIL THE AVERAGE OVER THE PAST SIX MONTHS?
A. I started managing the fund during April of this year. Up to that time,
the fund was very aggressively positioned to take advantage of declining
interest rates worldwide. This was based on the conviction that inflation
in most major economies would be stable to declining. We also expected that
foreign central banks would hold the line on short-term interest rates.
That is exactly what happened. However, despite these economic conditions -
which are generally favorable for fixed-income investments - bond markets
sold off on a global basis. The fund's aggressive approach enabled it to
outperform the competition by a wide margin in 1993. Conversely, the
performance suffered more this year when the markets moved against us.
Q. HOW DID YOU RESPOND TO THE GLOBAL MARKET VOLATILITY?
A. Since April, I have significantly reduced the fund's exposure to
volatility. This has been my top priority. I've done this by cutting the
fund's interest rate exposure in Europe and by moving money into
shorter-term, less volatile, Asian securities.
Q. WHICH ASIAN MARKETS DO YOU LIKE?
A. Thailand is the most attractive. Although emerging markets pose greater
risk than other markets, Thailand's economy is growing rapidly and the
currency has been very stable. Inflation has increased slightly - due to
large amounts of capital flowing into the economy - and interest rates have
risen as a result. So, this set of circumstances allows us to acquire what
is really the ideal type of security for the fund: high-yielding with low
volatility.
Q. THE FUND HAS A SIGNIFICANT STAKE IN LATIN AMERICA. WHICH MARKETS HAVE
YOU FOCUSED ON THERE?
A. Currently, I have about 18% of the fund invested in dollar-denominated
Mexican corporate bonds. Our fixed-income research team - which
significantly investigates the various factors that comprise credit quality
- - has uncovered many securities of companies that are very profitable and
have much higher credit quality than the major credit-rating agencies will
affirm. The rating agencies - such as Standard & Poor's or Moody's - view
the rating that they give to a country's government securities as the
ceiling for ratings on all other securities issued in that country. So, for
example, if the securities of a particular government are rated BB, which
is below investment grade, then no other bond can receive a rating higher
than that. Evaluating the creditworthiness of emerging market securities is
one of the strengths of Fidelity's fixed-income research operation. The
fund can buy corporate securities - at very attractive yields - that we
have determined to be of investment grade quality but have not been
designated as such by the rating agencies.
Q. YOU'VE ALSO BEEN ACTIVE IN CANADA AND THE CZECH REPUBLIC. WHAT'S THE
STORY WITH THESE TWO MARKETS?
A. Canada is experiencing deflation. It actually had a recent Consumer
Price Index number that was negative. The two-year government bond is
yielding about 8.5%. So real yields - the yields minus the prevailing
inflation rate - are extremely high, creating tremendous values in the
market. The main cause of this is the uncertainty around the upcoming
election. The party favoring the secession of Quebec has a good chance of
winning. I think it's unlikely that Quebec would actually vote to secede
from the rest of the country, but it's not out of the question. Whatever
the outcome, the uncertainty is being reflected in the prices of the
country's securities, creating a terrific buying opportunity. As for the
Czech Republic, many formerly government-controlled industries are being
privatized. It has a stable currency and an export-driven economy that is
beginning to accelerate. The fund is getting a 10%-11% yield on a Czech
short-term security with very low volatility.
Q. DERIVATIVES HAVE BEEN GETTING A LOT OF ATTENTION LATELY. HOW EXTENSIVELY
DO YOU USE THEM IN THE FUND, AND FOR WHAT PURPOSES?
A. We use two types of derivatives in the fund. The first is forward
currency contracts, or currency options, which are used primarily for
hedging. That is, they protect the fund's non-dollar-denominated bonds
against unfavorable movements in currency exchange rates. For example, if I
buy a French bond I might simultaneously sell a French franc forward
contract. By doing this, I lock in the dollar-franc exchange rate reflected
in the contract. This protects the fund's investment should the franc
weaken in value against the dollar. The fund also uses structured notes. We
use these mainly to take advantage of declining short-term interest rates
in other countries. They give the fund the potential for greater capital
appreciation than would be possible from simply holding the country's
short-term securities. The flip side of this, however, is if short rates go
up, the value of these instruments will fall. I've reduced the fund's
structured note holdings as part of my strategy for moderating the fund's
volatility. They currently make up only 4% of the portfolio.
Q. WHAT IS YOUR GAME PLAN FOR THE REST OF THE YEAR?
A. The main objective is to keep the fund's net asset value stable. My
emphasis in the current market environment is on high levels of income, as
opposed to capital appreciation plus income. This is a shift from the past,
when the fund was structured more aggressively. I've positioned the fund to
emphasize income without taking on a lot of interest rate risk.
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 June 30, 1994,
more than $314 million
MANAGER: Scott Kuldell,
since April 1994; analyst,
1987-
1994; joined Fidelity in 1987
(checkmark)
SCOTT KULDELL ON HIS INVESTMENT
APPROACH:
"I was a quantitative analyst
before I became a portfolio
manager, so I'm very
interested in measuring risk.
I'm doing a lot of work on
correlation measures for
various markets. This involves
quantifying the volatility of
different markets and their
securities under different
economic scenarios. I'm
hopeful that this work will
develop into a fairly predictive
model of volatility. In managing
a fund that is globally invested
but also relatively conservative,
I have to understand and
monitor a multiplicity of risk and
return variables. By quantifying
these risks as much as
possible, I'll be better equipped
to steer the fund away from the
kind of volatility that we've seen
this year."
(bullet) By the end of June, the
fund's aggregate exposure to
European interest rates had
been reduced
by 40%.
(bullet) A significant aspect of the
fund's long-term strategy is to
maintain a continuous U.S.
dollar hedge against the more
volatile currencies, such as
those of Europe. As of June
30, virtually all of the fund's
18.3% weighting in European
bonds was hedged, reducing
the fund's overall currency
risk.
(bullet) As of June 30, 36.9% of the
fund's investments were in
government securities, 31.4%
were in corporate bonds and
31.7% were in short-term and
other securities.

INVESTMENT CHANGES

Mexico 24 29

United States 19 15

Canada 10 9

United Kingdom 8 5

Argentina 6 5

TOP COUNTRIES ARE BASED ON THE LOCATION OF THE ISSUER OF EACH SECURITY,
INDICATING WHERE THE FUND IS EXPOSED TO POLITICAL AND CREDIT RISKS. THE
FUND'S LARGEST POSITION AS OF JUNE 30 WAS IN SECURITIES OF MEXICAN ISSUERS.
TOP INTEREST-RATE EXPOSURES AS OF JUNE 30, 1994
(ESTIMATED, BY COUNTRY) % OF FUND'S TOTAL % OF INTEREST-RATE
INTEREST-RATE EXPOSURE EXPOSURE SIX MONTHS
AGO

United States 29 23

Finland 16 10

Canada 10 9

Argentina 8 7

New Zealand 8 0

FIDELITY ESTIMATES INTEREST-RATE EXPOSURES BASED ON THE DURATION, OR
INTEREST-RATE SENSITIVITY, OF THE FUND'S HOLDINGS. AS OF JUNE 30, 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 JUNE 30, 1994
(ESTIMATED, BY CURRENCY) % OF FUND'S NET ASSETS % OF NET ASSETS
SIX MONTHS AGO

U.S. dollar 62 64

Thai baht 16 3

Malaysian ringgit 7 10

Mexican peso 5 10

Italian lira 5 5

ESTIMATED CURRENCY EXPOSURES INCLUDE THE IMPACT OF HEDGING, WHICH REDUCES
FOREIGN CURRENCY RISK AND INCREASES THE FUND'S U.S. DOLLAR POSITION. THE
THAI BAHT, AT APPROXIMATELY 16% OF ASSETS, WAS THE FUND'S LARGEST FOREIGN
CURRENCY EXPOSURE AS OF JUNE 30.
INVESTMENTS JUNE 30, 1994

Showing Percentage of Total Value of Investments

NONCONVERTIBLE BONDS - 31.4%
MOODY'S RATINGS (C) PRINCIPAL VALUE (NOTE 1)
AMOUNT (A)
ARGENTINA - 0.3%
Invertrad SA 9 1/4%, 10/14/94 (e) - $ 780,000 $ 774,150
CANADA - 7.2%
Ford Motor Co. of Canada Ltd. 8.23%,
4/16/99 A2 CAD 7,000,000 4,838,894
Ford Motor Credit Co. of Canada 10 1/2%,
5/17/96 Aa3 CAD 4,300,000 3,178,565
General Motors Acceptance Corp. Canada Ltd.:
10%, 8/30/95 A1 CAD 2,400,000 1,752,395
11 7/8%, 9/7/95 A1 CAD 3,900,000 2,898,108
General Motors Canada 10.85%, 7/24/96 A2 CAD 4,000,000 2,968,661
Ontario Hydro euro 10 5/8%, 1/8/96 Aa3 CAD 8,900,000 6,628,755
22,265,378
COLOMBIA - 1.4%
Financiera Energetica Nacional 6 5/8%,
12/13/96 (e) - 4,500,000 4,336,875
CZECH REPUBLIC - 2.1%
Ceskoslovenska Obchodni Banka 14%,
1/27/95 (c) - CSK 146,000 5,238,130
Komercni Banka 9 5/8%, 5/3/98 (c)(d)(f) - CSK 40,000 1,322,548
6,560,678
INDONESIA - 0.9%
PT Semen Cibinong 9%, 12/15/98 (e) - 3,000,000 2,835,000
MEXICO - 17.9%
Apasco SA euro 10 1/4%, 12/11/96 Ba2 385,000 392,700
Bancomer SNC euro 8%, 7/7/98 - 7,450,000 7,152,000
Bancomext:
euro:
8%, 4/14/00 Ba2 2,475,000 2,252,250
8%, 8/5/03 Ba2 1,050,000 885,938
yankee 7 1/2%, 7/1/00 Ba2 1,400,000 1,282,750
Cemex SA 8 7/8%, 6/10/98 (e) Ba2 2,000,000 1,970,000
Controladora Comercial Mexicana SA de CV
euro:
8 3/4%, 4/21/98 - 110,000 106,425
8 3/4%, 4/21/98 (e) - 750,000 725,625
NONCONVERTIBLE BONDS - CONTINUED
MOODY'S RATINGS (C) PRINCIPAL VALUE (NOTE 1)
AMOUNT (A)
MEXICO - CONTINUED
Desc (Soc De Fomento Indust) euro 11%,
12/15/97 - $ 6,480,000 $ 6,658,200
El Puerto de Liverpool SA de CV 7 1/4%,
10/19/96 (e) - 5,100,000 4,927,875
Empaques Ponderosa SA euro 8 3/4%,
12/6/96 - 1,230,000 1,211,550
Empresas ICA Sociedad Controladora SA de CV:
euro 9 3/4%, 2/11/98 - 2,980,000 3,017,250
9 3/4%, 2/11/98 (e) - 5,220,000 5,285,250
First Mexican Acceptance Corp. 8 3/4%,
9/15/96 - 2,200,000 2,232,208
Fomento Economico Mexicano SA de CV euro
9 1/2%, 7/22/97 - 2,530,000 2,552,137
Grupo Condumex SA de CV:
6 1/4%, 7/27/96 - 1,500,000 1,440,000
6 1/4%, 7/27/96 (e) - 4,490,000 4,310,400
Grupo Dina (Consorcio) euro 10 1/2%,
11/18/97 - 900,000 888,750
Grupo Simec 8 7/8%, 12/15/98 (e) - 3,000,000 2,843,700
Grupo Televisa SA euro 10%, 11/9/97 Ba2 2,600,000 2,613,000
Nafin Finance Trust II 7.2313%, 3/31/99 (e) (f) - 2,511,600 2,486,484
55,234,492
NEW ZEALAND - 0.4%
Telecommunication Corp. of New Zealand euro
10%, 7/10/98 Aa1 NZD 2,000,000 1,243,887
THAILAND - 1.2%
Industrial Finance Corp. Thailand 7 1/4%,
12/2/96 (c) - THB 100,000 3,799,280
TOTAL NONCONVERTIBLE BONDS
(Cost $104,013,614) 97,049,740
GOVERNMENT OBLIGATIONS (H)- 36.9%
ARGENTINA - 6.0%
Argentina Republic BOCON (f):
3 1/4%, 4/1/01 - ARP 14,546,932 7,877,711
3 1/4%, 9/1/02 - ARP 7,351,339 3,225,077
Province of Chaco 11 7/8%, 9/10/97 (d) - 3,100,000 3,131,000
GOVERNMENT OBLIGATIONS (H) - CONTINUED
MOODY'S RATINGS (C) PRINCIPAL VALUE (NOTE 1)
AMOUNT (A)
ARGENTINA - CONTINUED
Province of Cordoba 10%, 1/28/95 (d) - $ 4,294,791 $ 4,193,005
18,426,793
AUSTRALIA - 5.4%
Australian Government 12 1/2%, 3/15/97 AA AUD 21,000,000 16,778,191
CANADA - 3.0%
Alberta Municipal Financing Corp.:
0%, 6/15/96 Aa1 CAD 3,250,000 1,992,174
0%, 6/15/97 Aa1 CAD 1,300,000 726,947
Canadian Government 9 3/4%, 10/1/97 Aaa CAD 6,465,000 4,785,946
Montreal Canada euro 11 1/4%, 3/7/96 A+ CAD 1,400,000 1,032,655
Province of Quebec 10 1/4%, 4/7/98 Aa3 CAD 1,000,000 738,117
9,275,839
DENMARK - 1.5%
Danish Government Bullet 9%, 11/15/00 Aa1 DKK 29,000,000 4,830,814
FINLAND - 3.6%
Finland Republic:
11 3/4%, 3/15/96 Aa2 FIM 8,000,000 1,594,783
11%, 1/15/99 Aa2 FIM 47,000,000 9,514,163
11,108,946
FRANCE - 1.9%
Republic of France BTAN 8 1/2%, 11/12/97 Aaa FRF 30,000,000 5,807,679
ITALY - 1.6%
Italian Government 8 1/2%, 1/1/97 (c) A1 ITL 8,200,000 4,994,103
MEXICO - 2.3%
Mexican Government Cetes 0%, 7/14/94 - MXN 23,830,000 6,980,908
NEW ZEALAND - 3.7%
New Zealand Government:
8%, 7/15/98 Aaa NZD 10,250,000 6,149,169
6 1/2%, 2/15/00 Aaa NZD 5,750,000 3,230,435
8%, 4/15/04 Aaa NZD 3,200,000 1,939,334
11,318,938
GOVERNMENT OBLIGATIONS (H) - CONTINUED
MOODY'S RATINGS (C) PRINCIPAL VALUE (NOTE 1)
AMOUNT (A)
TRINIDAD & TOBAGO - 0.3%
Trinadad and Tobago 9 3/4%, 11/3/00 (e) Ba2 $ 906,000 $ 860,700
UNITED KINGDOM - 7.6%
United Kingdom Treasury 10%, 11/15/96 Aaa GBP 14,400,000 23,477,292
TOTAL GOVERNMENT OBLIGATIONS
(Cost $121,303,782) 113,860,203
OTHER SECURITIES - 8.4%
COLLATERALIZED NOTES - 4.2%
GRAND CAYMAN - 4.2%
Ridgefield Investments Ltd. sr. notes 0%, 2/2/95
(collateralized by Mexican govt. securities) (e) 15,073,000 12,934,141
INDEXED SECURITIES - 4.2%
UNITED STATES OF AMERICA - 4.2%
AIG Matched Funding Corp. note 13.4165%, 9/23/94
(coupon inversely indexed to HELIBOR and principal
indexed to value of 2-year Finnish securities, both
multiplied by 6) (g) 1,900,000 1,362,300
Bankers Trust Company note:
10.0675%, 4/24/95 (coupon inversely indexed to
HELIBOR rate and principal indexed to value of
2-year Finnish securities, both multiplied by 4) (g) 7,000,000
5,493,600
5.45%, 6/21/95 (inversely indexed to 3-month
DEM LIBOR rate, multiplied by 10) 3,000,000 2,833,500
14.4375%, 7/15/94 (indexed to CSK denom.
CEZ a.s. bond 16 1/2%, 6/25/98) 3,000,000 3,183,000
12,872,400
TOTAL OTHER SECURITIES
(Cost $29,467,934) 25,806,541
CERTIFICATES OF DEPOSIT - 3.3%
PRINCIPAL VALUE (NOTE 1)
AMOUNT (A)
THAILAND - 3.3%
Siam Comm. Bank Co. Ltd. 7 3/8%, 11/7/94 (c) THB 150,000 $ 6,000,615
Thai Military Bank Public Co. Ltd.:
8.52%, 9/20/96 (c) THB 10,000 391,283
8%, 10/21/96 (c) THB 100,000 3,868,450
TOTAL CERTIFICATES OF DEPOSIT
(Cost $10,372,439) 10,260,348
COMMERCIAL PAPER - 6.3%
MEXICO - 3.6%
Bancomer 0%, 7/21/94 (c) MXN 34,230 9,984,063
Grupo Embotellador de Mexico 0%, 8/10/94 (d) 1,000,000 991,189
10,975,252
NETHERLANDS - 1.1%
Unilever (Czech) 0%, 10/05/94 (c) CSK 100,000 3,456,600
UNITED STATES OF AMERICA - 1.6%
Corporate Asset Funding Co. 4.30%, 7/7/94 5,000,000 4,996,987
TOTAL COMMERCIAL PAPER
(Cost $19,358,998) 19,428,839
REPURCHASE AGREEMENTS - 13.4%
MATURITY
AMOUNT
UNITED STATES OF AMERICA - 13.4%
Investments in repurchase agreements
(U.S. Treasury obligations), in a joint
trading account at 4.29% dated
6/30/94 due 7/1/94 $ 41,502,945 41,498,000
PURCHASED OPTIONS - 0.3%
EXPIRATION DATE/ UNDERLYING FACE VALUE
STRIKE PRICE AMOUNT AT VALUE (NOTE1)
Put Option on MXN
(Cost $1,209,732) Feb. 95/3.4892 $ 15,475,313 $ 814,537
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $327,224,499) $ 308,718,208
FORWARD FOREIGN CURRENCY CONTRACTS
SETTLEMENT UNREALIZED
DATE(S) VALUE GAIN/(LOSS)
CONTRACTS TO BUY
20,146,500,000 IDR 12/27/94 $ 8,988,055 $ (11,945)
14,363,910,116 ITL 8/31/94 9,035,288 101,397
55,435,800 MYR 7/29/94 21,362,461 1,233,267
1,014,400,000 THB 7/5/94 to 10/5/94 40,348,254 348,254
204,847,240 BEF 8/8/94 6,262,124 202,124
104,885,590 FRF 8/2/94 19,247,958 674,435
755,730 DEM 7/5/94 476,014 1,905
590,790,000 JPY 1/4/95 6,091,629 91,628
TOTAL CONTRACTS TO BUY
(Payable amount $109,170,718) $ 111,811,783 2,641,065
THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 36.2%
CONTRACTS TO SELL
24,388,930 AUD 11/10/94 $ 17,690,483 (197,262)
314,672,922 BEF 8/8/94 9,619,466 (380,006)
15,400,234 GBP 8/17/94 to 5/5/95 23,749,333 (644,287)
27,263,400 CAD 7/27/94 19,686,641 (38,052)
30,672,200 DKK 12/6/94 4,893,719 (193,719)
61,708,074 FIM 7/19/94 11,661,060 (486,013)
220,398,860 FRF 8/2/94 40,446,243 (2,111,340)
11,991,085 DEM 7/5/94 to 10/5/94 7,549,579 (547,308)
127,050,000 THB 7/5/94 5,078,518 (4,637)
1,571,048,000 JPY 7/13/94 to 1/4/95 16,141,644 (1,533,484)
TOTAL CONTRACTS TO SELL
(Receivable amount $150,380,578) $ 156,516,686 (6,136,108)
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 50.7%
$ (3,495,043)
CURRENCY ABBREVIATIONS
ARP - Argentinean peso
AUD - Australian dollar
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
ITL - Italian lira
JPY - Japanese yen
MYR - Malaysian ringgit
MXN - Mexican peso
NZD - New Zealand dollar
THB - Thai baht
LEGEND
1. Principal amount is stated in United States dollars unless otherwise
noted.
2. Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
3. Principal amount in thousands.
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
9 5/8% , 5/3/98 10/14/93 1,387,543
Province of Chaco
11 7/8%, 9/10/97 3/9/94 3,184,819
Province of Cordoba
10%, 1 /28/95 1/27/94 4,750,000
Grupo Embotellador de Mexico
0%, 8/10/94 5/5/94 979,965
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 $44,290,200 or 14.1% of net
assets.
6. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
7. 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. The rate shown
is the rate at period end.
8. Most foreign government obligations have not been individually rated by
S&P or Moody's. The ratings listed are assigned to securities by FMR, the
fund's investment adviser, based principally on S&P and Moody's ratings of
the sovereign credit of the issuing government.
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 30.3% AAA, AA, A 32.9%
Baa 0.0% BBB 0.0%
Ba 3.3% BB 1.2%
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 30.2%. FMR has determined that unrated
debt securities that are lower quality account for 4.6% of the total value
of investment in securities.
INCOME TAX INFORMATION
At June 30, 1994, the aggregate cost of investment securities for income
tax purposes was $327,224,499. Net unrealized depreciation aggregated
$18,506,291, of which $1,521,517 related to appreciated investment
securities and $20,027,808 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.
INDUSTRY DIVERSIFICATION
As a Percentage of Total Value of Investment in Securities (Unaudited)
Basic Industries 3.7%
Construction & Real Estate 4.4
Durables 0.3
Finance 31.2
Foreign Government Obligations 36.9
Media & Leisure 1.5
Nondurables 2.2
Retail & Wholesale 1.9
Repurchase Agreements 13.4
Technology 1.9
Utilities 2.6
100.0%
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JUNE 30, 1994

ASSETS

Investment in securities, at value (including repurchase $ 308,718,208
agreements of $41,498,000) (cost $327,224,499)
(Notes 1 and 2) - See accompanying schedule

Cash 777

Receivable for investments sold 16,335,423

Unrealized appreciation on foreign currency contracts (Note 2) 2,653,010

Interest receivable 6,295,600

TOTAL ASSETS 334,003,018

LIABILITIES

Payable for investments purchased $ 12,015,230

Unrealized depreciation on foreign currency contracts (Note 2) 6,148,053

Payable for fund shares redeemed 966,334

Dividends payable 233,394

Accrued management fee 165,227

Other payables and accrued expenses 284,181

TOTAL LIABILITIES 19,812,419

NET ASSETS $ 314,190,599

Net Assets consist of (Note 1):

Paid in capital $ 351,228,847

Distributions in excess of net investment income (3,004,460)

Accumulated undistributed net realized gain (loss) on (12,244,631)
investments and foreign currency transactions

Net unrealized appreciation (depreciation) on investments (21,789,157)
and assets and liabilities in foreign currencies

NET ASSETS, for 33,819,142 shares outstanding $ 314,190,599

NET ASSET VALUE, offering price and redemption price per $9.29
share ($314,190,599 (divided by) 33,819,142 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JUNE 30, 1994

INVESTMENT INCOME $ 15,382,286
Interest

Less foreign taxes withheld (9,598)

15,372,688

EXPENSES

Management fee (Note 4) $ 1,151,172

Transfer agent fees (Note 4) 428,970

Accounting fees and expenses (Note 4) 113,430

Non-interested trustees' compensation 1,166

Custodian fees and expenses 203,540

Registration fees 15,010

Audit 64,734

Legal 1,509

Interest (Note 5) 17,755

Miscellaneous 2,231

TOTAL EXPENSES 1,999,517

NET INVESTMENT INCOME 13,373,171

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

Investment securities (8,267,554)

Foreign currency transactions (1,304,554) (9,572,108)

Change in net unrealized appreciation (depreciation) on:

Investment securities (20,966,888)

Assets and liabilities in foreign currencies (4,765,441) (25,732,329)

NET GAIN (LOSS) (35,304,437)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM $ (21,931,266)
OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31,
1994 1993

INCREASE (DECREASE) IN NET ASSETS

Operations $ 13,373,171 $ 32,018,211
Net investment income

Net realized gain (loss) (9,572,108) (8,447,013)

Change in net unrealized appreciation (depreciation) (25,732,329) 23,890,730

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (21,931,266) 47,461,928
FROM OPERATIONS

Distributions to shareholders: (13,088,775) (21,723,094)
From net investment income

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

TOTAL DISTRIBUTIONS (13,088,775) (26,998,733)

Share transactions 108,971,511 244,787,159
Net proceeds from sales of shares

Reinvestment of distributions 11,163,902 23,206,212

Cost of shares redeemed (193,526,343) (324,700,962)

Net increase (decrease) in net assets resulting from (73,390,930) (56,707,591)
share transactions

TOTAL INCREASE (DECREASE) IN NET ASSETS (108,410,971) (36,244,396)

NET ASSETS

Beginning of period 422,601,570 458,845,966

End of period (including distributions in excess of net $ 314,190,599 $ 422,601,570
investment income of $3,004,460 and $3,288,856,
respectively)

OTHER INFORMATION
Shares

Sold 10,991,713 24,404,726

Issued in reinvestment of distributions 1,149,811 2,318,125

Redeemed (19,784,215) (32,640,159)

Net increase (decrease) (7,642,691) (5,917,308)

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SIX MONTHS YEAR ENDED TWO MONTH YEAR ENDED OCTOBER 4, 1991
ENDED JUNE DECEMBER PERIOD OCTOBER 31, (COMMENCEMENT
30, 31, ENDED 1992 OF OPERATIONS) TO
1994 1993 DECEMBER OCTOBER 31,
31, 1991
1992

</TABLE>

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

Net asset value, $ 10.190 $ 9.680 $ 9.800 $ 10.040 $ 10.000
beginning of period

Income from Investment .349D .564 .191 .835 .061
Operations
Net investment
income

Net realized and (.910) .621 (.203) (.338) .037
unrealized gain
(loss)

Total from investment (.561) 1.185 (.012) .497 .098
operations

Less Distributions (.339) (.543) (.108) (.737) (.058)
From net investment
income

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

Total distributions (.339) (.675) (.108) (.737) (.058)

Net asset value, end of $ 9.290 $ 10.190 $ 9.680 $ 9.800 $ 10.040
period

TOTAL RETURNB, C (5.60) 12.59% (.12) 5.10% .98%
% %

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of $ 314,191 $ 422,602 $ 458,846 $ 648,448 $ 44,318
period (000 omitted)

Ratio of expenses to 1.07% 1.00% 1.20% 1.09% 1.00%
average net assets A A

Ratio of expenses to 1.07% 1.00% 1.23% 1.09% 2.87%
average net assets A A
before expense
reductions

Ratio of net investment 7.16% 8.00% 8.63% 9.04% 9.07%
income to average net A A
assets

Portfolio turnover rate 113% 160% 117% 154% 62%
A A

</TABLE>

A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
D FOR THE PERIOD, NET INVESTMENT INCOME PER SHARE WAS CALCULATED USING
AVERAGE SHARES OUTSTANDING.
NOTES TO FINANCIAL STATEMENTS
For the period ended June 30, 1994

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 and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Purchases and
sales of securities, income receipts, and expense payments are translated
into U.S. dollars at the prevailing exchange rate on the respective dates
of the transactions.
Effective January 1, 1994, the fund adopted Statement of Position (SOP)
93-4: Foreign Currency Accounting and Financial Statement Presentation for
Investment Companies. In accordance with this SOP, reported net realized
gains and losses on foreign currency transactions represent net gains and
losses from sales and maturities of forward currency contracts and foreign
currency options written, disposition of foreign currencies, currency gains
and losses realized between the trade and settlement dates on securities
transactions, and the difference between the amount of net investment
income accrued and the U.S. dollar amount actually received. Further, as
permitted under the SOP, the effects of changes in foreign currency
exchange rates on investments in securities are not segregated in the
Statement of Operations from the effects of changes in market prices of
those securities, but are included with the net realized and unrealized
gain or loss on investments.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to U.S. federal
income taxes to the extent that it distributes all of its taxable income
for its fiscal year. By so qualifying, the fund may be subject to foreign
taxes on income, gains on investments or currency repatriation. The fund
accrues such taxes as applicable. The schedule of investments includes
information regarding income taxes under the caption "Income Tax
Information."
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
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 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
foreign currency transactions, market discount, capital loss carryforwards
and losses deferred due to wash sales.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital.
Undistributed net investment income may include temporary book and tax
basis differences which will reverse in a subsequent period. Any taxable
income or gain remaining at fiscal year end is distributed in the following
year.
For the period ended June 30, 1994, the fund's dividends from net
investment income exceeded its taxable income after deducting realized
currency losses. If these losses are not offset by additional income or
gains before the fund's fiscal year end, a portion of the fund's dividends
will be treated as a return of capital to shareholders.
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 any realized gain (loss) is
recognized on the date of offset, otherwise gain (loss) is recognized on
settlement date.
2. OPERATING POLICIES -
CONTINUED
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.
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 $9,637,742 or 3.1% of net assets.
3. PURCHASES AND SALES OF
INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $160,471,302 and $253,732,533, respectively.
The following is a summary of the fund's written options activity:
NUMBER OF AGGREGATE FACE VALUE
CONTRACTS OF CONTRACTS
Call Options on JPY:
Outstanding at December 31, 1993 - -
Contracts opened 1 $ 4,650,000
Contracts closed (1) (4,650,000)
Outstanding at June 30, 1994 - $ -
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 .45%.
For the period, the management fee was equivalent to a annualized rate of
.62% of average net assets.
The Board of Trustees previously approved a group fee rate schedule with
rates ranging from .1325% to .3700%. Effective November 1, 1993, FMR
voluntarily agreed to implement this new group fee rate schedule as it
resulted in the same or a lower management fee.
In July 1994, the Board of Trustees approved a new group fee rate
schedule with rates ranging from .12% to .37%. Effective August 1, 1994,
FMR has voluntarily agreed to implement this new group fee rate schedule
as it results in the same or a further reduction in the 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,
4. FEES AND OTHER
TRANSACTIONS WITH AFFILIATESCONTINUED
DISTRIBUTION AND SERVICE PLAN - CONTINUED
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 $3,634 for the period.
TRANSFER AGENT FEES. 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 FEES. FSC maintains the funds' 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 $28,246,000 and $8,792,947,
respectively. The weighted average interest rate was 3.83%.
6. CREDIT RISK
The fund's relatively large investment in countries with limited or
developing capital markets may involve greater risks than investments in
more developed markets and the prices of such investments may be volatile.
The yields of emerging market debt obligations reflect, among other things,
perceived credit risk. The consequences of political, social or economic
changes in these markets may have disruptive effects on the market prices
of the fund's investments and the income they generate, as well as the
fund's ability to repatriate such amounts.
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 June 30, 1994, and the related
statement of operations for the six months then ended, the statement of
changes in net assets for the six months then ended and for the year ended
December 31, 1993 and the financial highlights for the six months ended
June 30, 1994, for the year ended December 31, 1993, 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 October 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 June 30, 1994 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Investment Trust: Fidelity Short-Term World Income Fund as of
June 30, 1994, the results of its operations for the six months then ended,
the changes in its net assets for the six months then ended and for the
year ended December 31, 1993, and the financial highlights for the six
months ended June 30, 1994, for the year ended December 31, 1993, 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
October 31, 1991, in conformity with
generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
August 10, 1994
TO CALL FIDELITY

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
Thomas J. Steffanci, Vice President
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, 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