FIDELITY INVESTMENT TRUST, N-30D, 1995-02-23

FIDELITY INVESTMENT TRUST
N-30D, 1995-02-23

Previous: THORNBURG LIMITED TERM MUNICIPAL FUND INC, NSAR-A, 1995-02-23

Next: NS GROUP INC, 10-K/A, 1995-02-23

(2_FIDELITY_LOGOS)FIDELITY

SHORT-TERM WORLD INCOME
FUND
ANNUAL REPORT
DECEMBER 31, 1994
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

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

INVESTMENT CHANGES 11 A summary of major shifts in the
fund's investments over the past six
months.

INVESTMENTS 12 A complete list of the fund's
investments with their market
values.

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

NOTES 24 Notes to the financial statements.

REPORT OF INDEPENDENT 30 The auditors' opinion.
ACCOUNTANTS

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE
PROSPECTUS. 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. FOR MORE
INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES, CALL
1-800-544-8888 FOR
A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE

DEAR SHAREHOLDER:
The unsettling period that began for bond investors when the Federal
Reserve Board raised short-term interest rates in February continued into
the fourth quarter of 1994. The Board raised the federal funds rate - the
rate banks charge each other for overnight loans - five times from February
through August, taking it from 3.00% to 4.75%. A sixth increase in November
lifted the rate to 5.50%. The Fed rate hikes were intended to forestall
inflation that could result from an improving U.S. economy, and they led to
negative returns for many bond investments and below-average returns for
many stocks.
The volatility we have witnessed this year follows a period in which there
was a nearly perfect investing environment. Although there was a
late-summer rally in stocks and, to a lesser extent in bond markets, it is
impossible to predict where interest rates might go or what might happen in
the markets in the months ahead. That's why it probably is a good time to
again review your investment portfolio and how well it matches your goals.
Keeping in mind that the negative effects of rising rates on your bond
investments will only be "paper" losses unless you sell your shares,
staying in your bond fund may be appropriate. The longer your investing
time frame, the more likely it is that you will retain your principal
investment through both up and down markets. For example, a 10-year time
frame, such as saving for a college education, enables you to weather these
ups and downs in a long-term fund, which has higher potential returns. An
intermediate-length fund could be appropriate if your investment horizon is
two to four years, and a short-term bond fund could be the right choice if
you need your money in one or two years.
If your time horizon is less than a year, you might want to consider moving
some of your bond investment into a money market fund, which seeks income
and a stable share price by investing in high-quality, short-term
investments. As with any mutual fund, of course, there is no assurance that
a money market fund will achieve its goal, and money market funds are not
insured by any agency of the U.S. government.
No matter what your investment horizon or portfolio diversity, it makes
good sense to follow a regular investment plan - investing a certain amount
of money at the same time each month or quarter - and to review your
portfolio periodically, as we have discussed here. A periodic investment
plan will not, of course, assure a profit or protect against a loss.
If you have any questions, please call us at 1-800-544-8888. We stand ready
to provide the information you need to make the investments that are right
for 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 DECEMBER 31, 1994 PAST 1 LIFE OF
YEAR FUND

Short-Term World Income -5.80% 12.43%

Lehman Brothers 1-3 Year Government Bond Index 0.52% n/a

Average Short World Multi-Market Income Fund -4.25% n/a

Consumer Price Index 2.67% 9.11%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one year, or since the fund started on
October 4, 1991. For example, if you had invested $1,000 in a fund that had
a 5% return over the past year, you would end up with $1,050. You can
compare the fund's returns to the performance of the Lehman Brothers 1-3
Year Government Bond Index - a broad gauge 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 currently reflects the performance of 37
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 (CPI) 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 DECEMBER 31, 1994 PAST 1 LIFE OF
YEAR FUND

Short-Term World Income -5.80% 3.67%

Lehman Brothers 1-3 Year Government Bond Index 0.52% n/a

Average Short World Multi-Market Income Fund -4.25% n/a

Consumer Price Index 2.67% 2.71%

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 Inc1-3 Year Government
10/31/91 10000.00 10000.00
11/30/91 9953.55 10102.72
12/31/91 10013.89 10256.01
01/31/92 10073.94 10242.24
02/29/92 10167.77 10273.17
03/31/92 10203.64 10269.78
04/30/92 10340.53 10363.47
05/31/92 10393.31 10459.19
06/30/92 10450.56 10564.62
07/31/92 10563.78 10695.56
08/31/92 10594.05 10773.00
09/30/92 10348.12 10873.91
10/31/92 10510.46 10811.60
11/30/92 10442.46 10795.80
12/31/92 10497.72 10896.49
01/31/93 10595.47 11010.50
02/28/93 10718.77 11098.09
03/31/93 10825.85 11132.18
04/30/93 10901.97 11199.91
05/31/93 11019.77 11172.82
06/30/93 11203.36 11256.12
07/31/93 11348.51 11280.51
08/31/93 11487.10 11374.20
09/30/93 11471.76 11410.54
10/31/93 11633.29 11436.05
11/30/93 11676.62 11437.86
12/31/93 11819.17 11483.24
01/31/94 11890.82 11555.03
02/28/94 11700.79 11484.82
03/31/94 11369.98 11426.80
04/30/94 11248.01 11383.23
05/31/94 11417.36 11398.58
06/30/94 11157.62 11427.25
07/31/94 11239.12 11529.97
08/31/94 11320.87 11567.90
09/30/94 11380.65 11541.71
10/31/94 11422.04 11568.12
11/30/94 11462.72 11520.04
12/30/94 11134.25 11542.39
$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity
Short-Term World Income Fund on October 31, 1991, shortly after the fund
started. As the chart shows, by December 31, 1994, the value of your
investment would have grown to $11,134 - an 11.34% 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 $11,542 - a 15.42%
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

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED DECEMBER 31, 1994 PAST PAST 6 PAST 1
MONTH MONTHS YEAR

Dividends per share A 6.52(cents) 36.67(cents) 70.56(cents)

Annualized dividend rate 8.42% 7.86% 7.43%

30-day annualized yield 8.85% - -

</TABLE>

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 $9.12
over the past month, $9.25 over the past six months and $9.50 over the past
year, you can compare the fund's income distributions over these three
periods.
The 30-day annualized YIELD is a standard formula for all bond funds based
on the yields of the bonds in the fund, averaged over the past 30 days.
This figure shows you the yield characteristics of the fund's investments
at the end of the period. It also helps you compare funds from different
companies on an equal basis. It does not reflect the cost of hedging and
other currency gains and losses.

A NON-TAXABLE DIVIDENDS: DIVIDENDS PAID ARE BASED ON THE FUND'S INVESTMENT
INCOME AND DO NOT REFLECT CURRENCY RELATED LOSSES. AS A RESULT OF CURRENCY
LOSSES, DIVIDENDS OF APPROXIMATELY 45.7(cents) PER SHARE PAID DURING 1994
WERE A NON-TAXABLE RETURN OF CAPITAL. THE EXACT NON-TAXABLE AMOUNT TO USE
IN PREPARING YOUR INCOME TAX RETURN WILL DEPEND ON YOUR SHARE ACTIVITY AND
WAS REPORTED TO YOU IN JANUARY, 1995.
FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
Most global bond markets were
hurt by rising interest rates during
the 12 months ended December
31, 1994. Yields rose - and prices
fell - on most fixed-income
investments. Starting in February,
the Federal Reserve Board raised
U.S. short-term interest rates six
times in 1994. Higher interest rates
followed in many foreign countries.
The sell-off was most pronounced in
emerging markets, where many
investors held highly leveraged
positions - investments made
with borrowed money. Emerging
market issues showed some signs
of stabilizing in the second half of
the year, until late December, when
Mexico devalued the peso. This
had a corresponding negative
effect on other emerging markets.
The J.P. Morgan Emerging
Markets Bond Index fell 18.68% for
the 12 months ended December
31, 1994. Developed markets
recovered somewhat during the
second half of the year, and bond
holders benefited from higher
yields and lower volatility. Despite
disappointing bond market results,
weakness in the U.S. dollar
caused the Salomon Brothers
World Government Bond Index -
which measures bond market
performance in developed nations
and includes U.S. issues - to post
a positive 2.34% return for the
year. For comparison, the Lehman
Brothers Aggregate Bond Index -
a broad measure of taxable bonds
in the U.S. market - returned
- -2.92% for the year.
An interview with Scott Kuldell, Portfolio Manager of Fidelity Short-Term
World Income Fund
Q. HOW HAS THE FUND PERFORMED OVER THE PAST YEAR, SCOTT?
A. It has been a difficult and turbulent year for global bond markets. For
the 12 months ended December 31, 1994, the fund had a total return of
- -5.80%. That trailed the average short world multi-market income fund,
which returned -4.25% during the same period, according to Lipper
Analytical Services.
Q. IN MID-DECEMBER, THE MEXICAN GOVERNMENT DEVALUED THE PESO IN AN ATTEMPT
TO SHORE UP THE DWINDLING FOREIGN EXCHANGE RESERVES OF THE NATION'S CENTRAL
BANK. HOW DID THE SUBSEQUENT MARKET FALL IN MEXICO AND OTHER EMERGING
MARKETS AFFECT THE FUND?
A. The devaluation occurred with less than two weeks to go in the period,
and it had a significant negative effect on the fund's share price.
However, I did make some moves to soften the blow. First, let me say that
the devaluation came as a complete surprise. Through a six-year old
agreement with business and labor leaders, the Mexican government had made
a commitment to maintaining a stable exchange rate for the peso. That
policy had brought about single-digit inflation and credibility in world
markets. For example, the North American Free Trade Agreement (NAFTA) would
have been impossible without it. Among the risks to Mexico of devaluation
were a loss of credibility among world investors, severely limiting its
ability to borrow money; a likely long and deep recession; and a return to
much higher inflation. With these negatives facing the new president and
finance minister - who were cabinet members of the previous administration
- - I believed they would fight to retain the previous policy.
Q. HOW LARGE WAS THE FUND'S INVESTMENT IN MEXICO AT THE TIME OF THE
DEVALUATION?
A. By mid-December, the fund's stake in Mexico totaled more than 30% - made
up of both peso-denominated government bonds and U.S. dollar-denominated
corporate bonds. In the days following the devaluation, yields rose - and
prices fell - significantly in Mexico's bond market. Because I felt that
the future prospects of the country's government debt had seriously
deteriorated, I immediately sold most of the fund's peso-denominated bonds.
I also sold many bonds issued by corporations that I believed would be
least able to make interest and principal payments to bond holders amid a
shakier economic environment. However, I did retain some short-term
corporate bonds issued by larger, stronger companies that I believe will be
able to meet their payment obligations. Many of these bonds had yields in
excess of 20% at the end of December, which I believe is excellent
compensation when measured against their risk. Overall, the fund's stake in
Mexico had decreased to 22% by the end of December.
Q. THE FALL OF GLOBAL BOND MARKETS - ESPECIALLY EMERGING MARKETS - EARLIER
IN 1994 AND THE MORE RECENT MEXICO CRISIS MAKE INTERNATIONAL BOND INVESTING
SEEM PRETTY RISKY. HOW DO YOU LIMIT POTENTIAL RISKS?
A. As with any type of investing, risks are usually commensurate with
potential rewards. That said, I began taking measures to significantly
limit volatility within the fund last spring. By December, I had shortened
the fund's duration - a measure of its sensitivity to changes in interest
rates - generally by purchasing bonds with shorter maturities. In addition,
I had sold some of the fund's more volatile investments in emerging market
nations such as Argentina. However, the fund will always be exposed to some
degree to what I call event risk - the risk that a sudden unforeseeable
event somewhere in the world will negatively affect the fund's investments.
Q. IS THERE ANY WAY TO PROTECT THE FUND AGAINST EVENT RISK?
A. There's no way to eliminate event risk as long as the fund is invested
overseas. But one way to limit this risk is to keep very close tabs on the
social, economic and political climate of each country in which the fund is
invested. Fidelity's extensive team of researchers and analysts help me do
that. However, as the Mexico crisis illustrated, negative events often can
be difficult to foresee. I believe the best way to try to reduce event risk
is to keep the fund extremely well diversified, both in terms of the types
of bonds and the countries in which it invests. Therefore, no matter how
attractive a particular country's bonds appear, I don't anticipate having
as much as one-third of the fund invested in any single foreign country
going forward.
Q. WHERE DID YOU FIND SUCCESSFUL OPPORTUNITIES OVER THE PAST SIX MONTHS?
A. With interest rates continuing to rise in many countries, I had to be
very selective. That said, short-term bank certificates of deposit in
Thailand have provided the fund with very attractive yields at low levels
of volatility. The country's economy is growing at a strong clip, but
inflation - a bond holder's worst enemy - has remained in check. The fund's
investment in Thailand roughly ranged between 5% and 17% during 1994, and
was 9% on December 31. In addition, the fund benefited from owning
short-term government bonds in New Zealand. The central bank there is
mandated by law to keep inflation between 0% and 2%, and the country's
currency has remained very strong over the past several months. The fund
had a 4% investment in New Zealand at the end of 1994.
Q. SCOTT, IN THE PAST YOU'VE DISCUSSED HOW THE FUND USES DERIVATIVE
INVESTMENTS KNOWN AS FORWARD FOREIGN CURRENCY CONTRACTS TO HEDGE SOME OF
ITS OVERSEAS INVESTMENTS. WAS THAT STRATEGY SUCCESSFUL?
A. You can answer that question in two ways. Using these contracts did
successfully reduce the fund's exposure to foreign currency risk - the
chance that movements in a country's currency will negatively affect the
fund's investments there. They accomplish that by effectively tying the
value of the foreign investments that I've hedged to the U.S. dollar. In
fact, I wouldn't have purchased some of the fund's European investments if
I couldn't have hedged them. I don't feel that it's in the best interests
of shareholders to expose the fund to that added currency risk and
volatility. However, there is a risk to hedging. If the dollar falls in
value - which it did during the first half of 1994 - the fund gives up a
portion of any currency gains made by these foreign investments.
Q. THE FUND HAD A RETURN OF CAPITAL IN 1994. WHAT DOES THAT MEAN FOR
SHAREHOLDERS?
A. For tax purposes, currency-related losses count against taxable income
in the fund, causing certain dividends to be non-taxable for shareholders.
The return of capital has no impact on the fund's performance; it's
strictly a matter of how its distributions are taxed.
Q. LET'S DISCUSS YOUR OUTLOOK FOR THE NEXT SIX MONTHS.
A. As is often the case, there are reasons for both optimism and pessimism.
First, the Mexico situation has created a level of uncertainty and
skepticism in foreign markets - and especially in emerging markets - that
could serve to depress these markets in the near term. On the flip side,
however, many markets have already fallen to very attractive levels of
valuation. For example, the yields on dollar-denominated bonds issued by
Mexican corporations that I view as strong and vibrant are now similar to
those of junk bonds issued by U.S. corporations that are in default. In
other words, the yields in many overseas markets may already reflect a
significant amount of bad news. Going forward, the fund should benefit from
these attractive yields, while I focus first and foremost on limiting risk.

FUND FACTS
GOAL: high current income
with preservation of capital
by investing in short-term debt
securities around the world
START DATE: October 4, 1991
SIZE: as of December 31, 1994,
more than $265 million
MANAGER: Scott Kuldell,
since April 1994; manager,
Fidelity Deutsche Mark,
Sterling and Yen Portfolios,
since March 1994; joined
Fidelity in 1987
(checkmark)
SCOTT KULDELL ON WHO SHOULD
INVEST IN THE FUND:
"As we've seen in 1994, there
are several risks to
fixed-income investing
overseas, but by the same
token, the long-term rewards
can be excellent. I see the
fund not as a single
investment on its own, or
even as a large chunk of an
investor's portfolio. Rather, I
feel that the fund is best
utilized as a smaller,
complementary portion of a
diversified fixed-income
portfolio. It's appropriate for
investors who are looking for
some foreign exposure and
the potential for higher yields
than U.S. short-term bonds
with comparable maturities."
(solid bullet) On December 31, the
country in which the fund had
its largest stake was the
United States, at 27%. Six
months ago, the fund had its
largest stake in Mexico, at
24%.
(solid bullet) On December 31, the fund
had a small stake in options
tied to the Mexican peso.
These options were
purchased to hedge the
fund's peso-denominated
bonds against unfavorable
currency movements. As the
value of the peso fell in
December, the value of the
options rose. Because the
options allowed the fund to
lock in more favorable rates of
exchange for the sale of these
bonds than otherwise would
have been available, they
protected the fund against
some peso-related losses.
INVESTMENT CHANGES

The charts below highlight three different aspects of the fund's
investments: the country where they were issued, their sensitivity to
interest-rate changes, and their currency exposure. The top countries in
each table differ because some securities have more interest-rate risk than
others, because securities issued in one country may be denominated in
another country's currency, and because of the effects of currency hedging.
TOP COUNTRIES AS OF DECEMBER 31, 1994
(BY LOCATION OF ISSUER) % OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
SIX MONTHS AGO

United States 27 19

Mexico 22 24

Argentina 10 6

Thailand 9 5

Finland 5 4

TOP COUNTRIES ARE BASED ON THE LOCATION OF THE ISSUER OF EACH SECURITY,
INDICATING WHERE THE FUND IS EXPOSED TO POLITICAL AND CREDIT RISKS. THE
FUND'S LARGEST POSITION AS OF DECEMBER 31 WAS IN SECURITIES OF UNITED
STATES ISSUERS.
TOP INTEREST-RATE EXPOSURES AS OF DECEMBER 31, 1994
(ESTIMATED, BY COUNTRY) % OF FUND'S TOTAL % OF INTEREST-RATE
INTEREST-RATE EXPOSURE EXPOSURE SIX MONTHS
AGO

United States 34 29

Thailand 11 3

Finland 9 16

New Zealand 8 8

Czech Republic 7 3

FIDELITY ESTIMATES INTEREST-RATE EXPOSURES BASED ON THE DURATION, OR
INTEREST-RATE SENSITIVITY, OF THE FUND'S HOLDINGS. AS OF DECEMBER 31, THE
FUND WAS MOST SENSITIVE TO INTEREST-RATE MOVEMENTS IN THE U.S., WHICH
ACCOUNTED FOR APPROXIMATELY 34% OF THE FUND'S INTEREST-RATE EXPOSURE.
TOP CURRENCY EXPOSURES AS OF DECEMBER 31, 1994
(ESTIMATED, BY CURRENCY) % OF FUND'S % OF NET ASSETS
NET ASSETS SIX MONTHS AGO

U.S. dollar 62 50

Thai baht 10 16

Czech koruna 8 3

Argentine peso 7 4

New Zealand dollar 4 4

THE U.S. DOLLAR EXPOSURE ABOVE INCLUDES THE EFFECTS OF FOREIGN INVESTMENTS
WHOSE CURRENCY RISK IS FULLY HEDGED. THE THAI BAHT, AT APPROXIMATELY 10% OF
ASSETS, WAS THE FUND'S LARGEST FOREIGN CURRENCY EXPOSURE AS OF DECEMBER 31.
INVESTMENTS DECEMBER 31, 1994

Showing Percentage of Total Value of Investment in Securities

NONCONVERTIBLE BONDS - 20.8%
MOODY'S RATINGS (B) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (A) (NOTE 1)
CANADA - 2.9%
Ford Motor Credit Co. of Canada Ltd.
10 1/2%, 5/17/96 Aa3 CAD 4,300,000 $ 3,119,409
General Motors Acceptance Corp. of Canada Ltd.:
10%, 8/30/95 A1 CAD 2,400,000 1,723,946
11 7/8%, 9/7/95 A1 CAD 3,900,000 2,840,081
7,683,436
CZECH REPUBLIC - 4.1%
CEZ AS 16 1/2%, 6/25/98 (c) - CSK 89,320 3,414,239
Ceskoslovenska Obchodni Banka (c):
14%, 1/27/95 (d) - CSK 146,000 5,225,486
11 1/8%, 8/26/97(d) - CSK 28,000 990,122
Komercni Banka 10.65%, 5/3/98 (c)(d)(f) - CSK 40,000 1,397,280
11,027,127
MEXICO - 11.9%
Cemex SA 8 7/8%, 6/10/98 (e) Ba2 1,970,000 1,716,363
El Puerto de Liverpool SA de CV
7 1/4%, 10/19/96 (e) - 5,800,000 5,227,250
Empaques Ponderosa SA euro
8 3/4%, 12/6/96 - 6,410,000 5,640,800
First Mexican Acceptance Corp. SA
8 3/4%, 9/15/96 - 2,100,000 2,068,731
Fomento Economico Mexicano SA de CV
euro 9 1/2%, 7/22/97 - 5,530,000 4,928,613
Gruma SA de CV euro 9 3/4%, 3/9/98 - 3,000,000 2,745,000
Grupo Condumex SA de CV:
6 1/4%, 7/27/96 (e) - 4,990,000 4,559,613
6 1/4%, 7/27/96 - 1,500,000 1,370,625
Grupo Industrial Durango SA
9 3/4%, 11/18/96 (e)(f) BB 1,600,000 1,504,000
Grupo Simec SA 8 7/8%, 12/15/98 (e) - 2,530,000 1,903,825
31,664,820
NEW ZEALAND - 0.5%
Telecommunication Corp. of New Zealand euro
10%, 7/10/98 Aa1 NZD 2,000,000 1,301,105
NONCONVERTIBLE BONDS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (A) (NOTE 1)
THAILAND - 1.4%
Industrial Finance Corp.
7 1/4%, 12/2/96 (c) - THB 100,000 $ 3,759,810
TOTAL NONCONVERTIBLE BONDS
(Cost $60,408,250) 55,436,298
GOVERNMENT OBLIGATIONS (G) - 35.4%
ARGENTINA - 10.3%
Argentina Republic:
Bote CNEA euro 3.5625%, 9/1/97 (f) - 7,500,000 4,360,583
Letras 0%, 2/24/95 (c) - ARP 20,000 19,375,691
Province of Chaco 11 7/8%, 9/10/97 (d) - 3,100,000 3,069,000
Province of Cordoba 10%, 1/28/95 (d) - 613,540 570,593
27,375,867
AUSTRALIA - 2.2%
Australian Government 12 1/2%, 3/15/97 AA AUD 7,100,000 5,753,607
CANADA - 0.6%
Canadian Government 8 1/4%, 3/1/97 Aaa CAD 2,400,000 1,693,131
FINLAND - 4.9%
Finland Republic:
11 3/4%, 3/15/96 Aa2 FIM 8,000,000 1,768,659
6 1/2%, 9/15/96 Aaa FIM 46,000,000 9,451,284
11%, 1/15/99 Aa2 FIM 8,000,000 1,771,192
12,991,135
FRANCE - 1.1%
Republic of France 6 1/2%, 10/12/96 Aaa FRF 16,000,000 2,951,470
ITALY - 1.9%
Republic of Italy 8 1/2%, 8/1/97 (c) A1 ITL 9,000,000 5,151,430
MEXICO - 1.1%
Mexican Government Tesabono 0%, 1/26/95 - 2,928,000 2,884,729
NEW ZEALAND - 3.5%
New Zealand Government 9%, 11/15/96 Aaa NZD 14,800,000 9,401,268
GOVERNMENT OBLIGATIONS (G) - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (A) (NOTE 1)
SPAIN - 3.5%
Kingdom of Spain 10.55%, 11/30/96 (c) - ESP 1,215,000 $ 9,179,372
UNITED KINGDOM - 2.6%
United Kingdom, Great Britain &
Northern Ireland 10 1/2%, 2/21/97 Aaa GBP 4,250,000 6,938,493
UNITED STATES OF AMERICA - 3.7%
U.S. Treasury Note 7 1/4%, 11/30/96 Aaa 10,000,000 9,923,400
TOTAL GOVERNMENT OBLIGATIONS
(Cost $95,294,130) 94,243,902
COLLATERALIZED NOTES - 3.9%
MEXICO - 3.9%
Ridgefield Investments Ltd. sr. notes (collateralized by
Mexican govt. securities) 0%, 2/2/95 (e)
(Cost $14,996,727) 15,073,000 10,413,937
CERTIFICATES OF DEPOSIT - 5.2%
THAILAND - 5.2%
Siam Commercial Bank PCL
7 1/4%, 11/29/96 (c) THB 100,000 3,745,470
Thai Farmers Bank PCL 10.10%, 8/9/96 (c) THB 100,000 4,017,130
Thai Military Bank PCL (c):
9.3%, 2/23/95 THB 60,000 2,389,008
8%, 10/21/96 THB 100,000 3,821,550
TOTAL CERTIFICATES OF DEPOSIT
(Cost $14,301,015) 13,973,158
COMMERCIAL PAPER - 13.5%
PRINCIPAL VALUE
AMOUNT (A) (NOTE 1)
MEXICO - 2.4%
Banco Nacional de Mexico SA:
0%, 1/12/95 MXN 14,013,400 $ 2,768,683
0%, 2/2/95 MXN 17,944,300 3,477,211
6,245,894
NETHERLANDS - 3.3%
Unilever NV (c):
0%, 1/3/95 CSK 100,000 3,574,230
0%, 2/3/95 CSK 100,000 3,543,010
0%, 4/6/95 CSK 50,000 1,732,410
8,849,650
THAILAND - 2.2%
Finance One PCL 0%, 2/1/95 (c) THB 50,000 1,975,700
Industrial Finance Corp. 0%, 6/15/95 (c) THB 100,000 3,800,040
5,775,740
UNITED STATES OF AMERICA - 5.6%
Philip Morris Co., Inc. 5.83%, 1/17/95 5,000,000 4,985,485
Preferred Receivables Fund Corp.
5.87%, 1/20/95 10,000,000 9,965,847
14,951,332
TOTAL COMMERCIAL PAPER
(Cost $38,733,542) 35,822,616
BANK NOTES - 1.1%
PRINCIPAL VALUE
AMOUNT (A) (NOTE 1)
CANADA - 1.1%
General Motors of Canada Ltd. 10.85%, 7/24/96
(Cost $3,563,155) CAD 4,000,000 $ 2,911,477
REPURCHASE AGREEMENTS - 17.6%
MATURITY
AMOUNT
Investments in repurchase agreements,
(U.S. Treasury obligations), in a joint
trading account at 5.77%, dated
12/30/94 due 1/3/95 $ 46,852,018 46,822,000
PURCHASED OPTIONS - 2.5%
EXPIRATION DATE/ UNDERLYING FACE
STRIKE PRICE AMOUNT AT VALUE
Put option on MXN Jan. 95/4.00 $ 6,400,000 1,705,600
Put option on MXN Feb. 95/3.4892 10,500,000 4,984,665
TOTAL PURCHASED OPTIONS
(Cost $1,340,133) 6,690,265
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $275,458,952) $ 266,313,653
FORWARD FOREIGN CURRENCY CONTRACTS
SETTLEMENT UNREALIZED
DATE(S) VALUE GAIN/(LOSS)
CONTRACTS TO BUY
3,494,558 AUD 2/10/95 $ 2,703,809 $ 3,809
3,778,363 CAD 1/27/95 2,695,077 (54,923)
1,177,927 DEM 1/13/95 760,424 11,424
3,533,721 GBP 1/18/95 to 5/5/95 5,535,167 (11,365)
13,594,800,000 IDR 6/22/95 5,967,255 (32,745)
7,232,229,000 ITL 2/6/95 4,451,219 36,585
1,133,854,000 JPY 1/4/95 to 1/13/95 11,372,872 (71,190)
16,520,197 NZD 3/6/95 to 7/21/95 10,575,404 354,444
11,819,700 SGD 3/13/95 8,131,478 55,653
96,402,398 THB 2/28/95 3,827,391 (3,802)
TOTAL CONTRACTS TO BUY
(Payable amount $55,732,206) $ 56,020,096 287,890
THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 21.0%
CONTRACTS TO SELL
15,851,108 AUD 2/10/95 $ 12,264,319 (215,698)
21,196,159 CAD 1/27/95 15,119,075 560,878
27,971,140 DEM 1/13/95 to 3/13/95 18,085,660 (287,578)
1,172,424,843 ESP 9/27/95 8,748,948 152,615
62,086,117 FIM 3/22/95 13,123,856 (310,661)
16,129,850 FRF 1/17/95 3,022,572 31,977
10,378,824 GBP 1/18/95 to 5/5/95 13,324,347 (223,837)
9,855,390,500 ITL 2/6/95 6,065,696 284,305
1,881,337,000 JPY 1/4/95 to 3/13/95 18,911,848 (949,412)
16,520,197 NZD 3/6/95 to 7/21/95 10,575,404 (148,531)
TOTAL CONTRACTS TO SELL
(Receivable amount $118,135,783) $ 119,241,725 (1,105,942)
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 44.8%
$ (818,052)
CURRENCY ABBREVIATIONS
ARP - Argentine peso
AUD - Australian dollar
GBP - British pound
CAD - Canadian dollar
CSK - Czech koruna
ESP - Spanish peseta
FIM - Finnish markka
FRF - French franc
DEM - German deutsche mark
IDR - Indonesian rupiah
ITL - Italian lira
JPY - Japanese yen
MXN - Mexican peso
NZD - New Zealand dollar
SGD - Singapore dollar
THB - Thai baht
LEGEND
(a) Principal amount is stated in United States dollars unless otherwise
noted.
(b) Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
(c) Principal amount in thousands.
(d) 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
Ceskoslovenska
Obchodni Banka:
14%,1/27/95 3/14/94 $4,928,411
11 1/8%,8/26/97 9/1/94 $1,003,548
Komercni Banka
10.65%, 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-
5/31/94 $613,540
(e) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $25,324,988 or 9.5% of net
assets.
(f) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(g) Some 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 21.8% AAA, AA, A 24.0%
Baa 0.0% BBB 0.0%
Ba 0.6% BB 0.6%
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
22.9%. FMR has determined that unrated debt securities that are lower
quality account for 4.9% of the total value of investment in securities.
INCOME TAX INFORMATION
At December 31, 1994, the aggregate cost of investment securities for
income tax purposes was $275,647,875. Net unrealized depreciation
aggregated $9,334,222, of which $6,570,672 related to appreciated
investment securities and $15,904,894 related to depreciated investment
securities.
At December 31, 1994, the fund had a capital loss carryforward of
approximately $16,391,000 of which $349,000, $2,324,000 and $13,718,000
will expire
on December 31, 1999, 2000 and 2002,
respectively.
The fund has elected to defer to its fiscal year ending December 31, 1995
$5,989,239 of losses recognized during the period November 1, 1994 to
December 31, 1994.
For the period, interest from foreign countries was $19,858,339 or $0.67
per share. Taxes accrued or paid to foreign countries were $532,677 or
$0.02 per share.
INDUSTRY DIVERSIFICATION
As a Percentage of Total Value of
Investments in Securities (Unaudited)
Basic Industries 3.4%
Certificates of Deposit 5.2
Construction & Real Estate 0.6
Finance 8.2
Foreign Government Obligations 31.7
Media & Leisure 0.8
Nondurables 2.9
Retail & Wholesale 2.0
Repurchase Agreements 17.6
Short-Term Obligations 19.9
Technology 2.2
U.S. Government Obligations 3.7
Utilities 1.8
100.0%
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
DECEMBER 31, 1994

ASSETS

Investment in securities, at value (including repurchase $ 266,313,653
agreements of $46,822,000) (cost $275,458,952) -
See accompanying schedule

Receivable for investments sold 12,458,524

Unrealized appreciation on foreign currency contracts 1,598,653

Receivable for closed foreign currency contracts 129,210

Interest receivable 4,153,653

TOTAL ASSETS 284,653,693

LIABILITIES

Payable to custodian bank $ 179,074

Payable for investments purchased 13,459,472

Unrealized depreciation on foreign currency contracts 2,416,705

Payable for closed foreign currency contracts 29,753

Payable for fund shares redeemed 2,565,754

Dividends payable 270,203

Accrued management fee 136,346

Other payables and accrued expenses 189,186

TOTAL LIABILITIES 19,246,493

NET ASSETS $ 265,407,200

Net Assets consist of:

Paid in capital $ 298,303,927

Distributions in excess of net investment income (4,188,209)

Accumulated undistributed net realized gain (loss) on (19,233,639)
investments and foreign currency transactions

Net unrealized appreciation (depreciation) on (9,474,879)
investments and assets and liabilities in foreign
currencies

NET ASSETS, for 29,792,946 shares outstanding $ 265,407,200

NET ASSET VALUE, offering price and redemption price per $8.91
share ($265,407,200 (divided by) 29,792,946 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED DECEMBER 31, 1994

INVESTMENT INCOME 28,705,931
Interest

Less foreign taxes withheld (532,677)

TOTAL INCOME 28,173,254

EXPENSES

Management fee $ 2,008,467

Transfer agent fees 721,300

Accounting fees and expenses 198,213

Non-interested trustees' compensation 1,968

Custodian fees and expenses 208,898

Registration fees 28,817

Audit 132,865

Legal 2,964

Interest 26,193

Miscellaneous 4,187

TOTAL EXPENSES 3,333,872

NET INVESTMENT INCOME 24,839,382

REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:

Investment securities (28,430,592)

Foreign currency transactions (5,524,508)

Written options 23,239 (33,931,861)

Change in net unrealized appreciation (depreciation) on:

Investment securities (17,351,223)

Assets and liabilities in foreign currencies 3,933,172 (13,418,051)

NET GAIN (LOSS) (47,349,912)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ (22,510,530)
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1994 1993

INCREASE (DECREASE) IN NET ASSETS

Operations $ 24,839,382 $ 32,018,211
Net investment income

Net realized gain (loss) (33,931,861) (8,447,013)

Change in net unrealized appreciation (depreciation) (13,418,051) 23,890,730

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (22,510,530) 47,461,928
FROM OPERATIONS

Distributions to shareholders: (6,841,239) (21,723,094)
From net investment income

In excess of net investment income (1,710,314) (5,275,639)

Return of capital (Note 1) (15,696,807) -

TOTAL DISTRIBUTIONS (24,248,360) (26,998,733)

Share transactions 192,214,787 244,787,159
Net proceeds from sales of shares

Reinvestment of distributions 20,522,507 23,206,212

Cost of shares redeemed (323,172,774) (324,700,962)

Net increase (decrease) in net assets resulting from (110,435,480) (56,707,591)
share transactions

TOTAL INCREASE (DECREASE) IN NET ASSETS (157,194,370) (36,244,396)

NET ASSETS

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

End of period (including distributions in excess of net $ 265,407,200 $ 422,601,570
investment income of $4,188,209 and $3,288,856,
respectively)

OTHER INFORMATION
Shares

Sold 20,004,614 24,404,726

Issued in reinvestment of distributions 2,165,313 2,318,125

Redeemed (33,838,814) (32,640,159)

Net increase (decrease) (11,668,887) (5,917,308)

</TABLE>

FINANCIAL HIGHLIGHTS

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

1994 1993 1992 1992 1991

SELECTED PER-SHARE DATA

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

Income from Investment .644 .564 .191 .835 .061
Operations
Net investment
income

Net realized and (1.218) .621 (.203) (.338) .037
unrealized gain
(loss)

Total from investment (.574) 1.185 (.012) .497 .098
operations

Less Distributions (.199) (.543) (.108) (.737) (.058)
From net investment
income

In excess of net (.050) (.132) - - -
invest
ment income

Return of capital (.457) - - - -

Total distributions (.706) (.675) (.108) (.737) (.058)

Net asset value, end of $ 8.910 $ 10.190 $ 9.680 $ 9.800 $ 10.040
period

TOTAL RETURN B, C (5.80)% 12.59% (.12)% 5.10% .98%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of $ 265,407 $ 422,602 $ 458,846 $ 648,448 $ 44,318
period (000 omitted)

Ratio of expenses to 1.01% 1.00% 1.20% 1.09% 1.00% A
average net assets A

Ratio of expenses to 1.01% 1.00% 1.23% 1.09% 2.87% A
average net assets A
before expense
reductions

Ratio of net investment 7.54% 8.00% 8.63% 9.04% 9.07% A
income to average net A
assets

Portfolio turnover rate 134% 160% 117% 154% 62% A
A

</TABLE>

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 of their purchase date 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, 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 investment securities.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes all of its taxable income for its fiscal
year. The schedule of investments includes information regarding income
taxes under the caption "Income Tax Information."

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 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, capital loss carryforwards and losses deferred due to wash sales,
futures and options.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect net investment income per share. Distributions in excess of 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 December 31, 1994, the fund's distributions exceeded
the aggregate amount of taxable income and net realized gains resulting in
a return of capital. This was due to certain foreign currency losses which
decreased taxable income available for distribution after certain
distributions had been made. (The tax treatment of distributions for the
1994 calendar year was reported to shareholders prior to February 1, 1995.)
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 use foreign currency contracts to facilitate
transactions in foreign securities and to manage the fund's currency
exposure. Contracts to buy generally are used to acquire exposure to
foreign currencies, while contracts to sell are used to hedge the fund's
investments against currency fluctuations. Also, a contract to buy or sell
can offset a previous contract. These contracts involve market risk in
excess of the unrealized gain or loss reflected in the fund's Statement of
Assets and Liabilities. The U.S. dollar value of the currencies the fund
has committed to buy or sell is shown in the schedule of investments under
the caption "Forward Foreign Currency Contracts." This amount represents
the
2. OPERATING POLICIES -
CONTINUED
FORWARD FOREIGN CURRENCY
CONTRACTS - CONTINUED
aggregate exposure to each currency
the fund has acquired or hedged through currency contracts at period end.
Losses may arise from changes in the value of the foreign currency or if
the counterparties do not perform under the contracts' terms.
The U.S. dollar value of forward foreign currency contracts is determined
using forward currency exchange rates supplied by a quotation service.
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. Contracts that have been offset with different
counterparties are reflected as both a contract to buy and a contract to
sell in the schedule of investments under the caption "Forward Foreign
Currency Contracts."
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 affiliated
entities of FMR, may transfer uninvested cash balances into one or more
joint trading accounts. These balances are invested in one or more
repurchase agreements that mature in 60 days or less from the date of
purchase, and are collateralized by U.S. Treasury or Federal Agency
obligations.
FUTURES CONTRACTS AND OPTIONS.
The fund may use futures and options contracts to manage its exposure to
the bond market and to fluctuations in interest rates and currency values.
Buying futures, writing puts, and buying calls tend to increase the fund's
exposure to the underlying instrument. Selling futures, buying puts, and
writing calls tend to decrease the fund's exposure to the underlying
instrument, or hedge other fund investments. The underlying face amount at
value is shown in the schedule of investments under the caption "Purchased
Options." This amount reflects each contract's exposure to the underlying
instrument at period end. Losses may arise from changes in the value of the
underlying instruments, if there is an illiquid secondary market for the
contracts, or if the counterparties do not perform under the contracts'
terms.
2. OPERATING POLICIES - CONTINUED
FUTURE CONTRACTS AND OPTIONS - CONTINUED
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Exchange-traded
options are valued using the last sale price or, in the absence of a sale,
the last offering price. Options traded over-the-counter are valued using
dealer-supplied valuations.
INDEXED SECURITIES. The fund may invest in indexed securities whose values
are linked either directly or inversely to changes in foreign currencies,
interest rates, commodities, indices, or other underlying instruments. The
fund uses these securities to increase or decrease its exposure to
different underlying instru
ments and to gain exposure to markets that might be difficult to invest in
through conventional securities. Indexed securities may be more volatile
than their underlying instruments, 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 $11,252,481 or 4.2% of net assets.
3. PURCHASES AND SALES
OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $322,441,390 and $404,183,886, respectively of which purchases
of U.S. government and government agencies aggregated $9,922,656.
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 December 31, 1993 - -
Contracts opened 1 $ 4,650,000
Contracts closed (1) (4,650,000)
Outstanding at December 31, 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 and is based on
the monthly average net assets of all the mutual funds advised by FMR. The
rates ranged from .1325% to .3700% for the period January 1, 1994 to July
31, 1994 and .1200% to .3700% for the period August 1, 1994 to December 31,
1994. In the event that these rates were lower than the contractual rates
in effect during those periods, FMR voluntarily implemented the above
rates, as they resulted in the same or a lower management fee. The annual
individual fund fee rate is .45%. For the period, the management fee was
equivalent to an annual rate of .61% of average net assets.
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 manage-
ment 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 $4,008 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.
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 $7,688,464,
respectively. The weighted average interest rate was 4.38%.
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:
We have audited the accompanying statement of assets and liabilities of
Fidelity Investment Trust: Short-Term World Income Fund, including the
schedule of portfolio investments, as of December 31, 1994, and the related
statement of operations for the year then ended, the statement of changes
in net assets for each of the two years in the period then ended and the
financial highlights for each of the two years in the period then ended,
for the two month period ended December 31, 1992, for the year ended
October 31, 1992 and for the period October 4, 1991 (commencement of
operations) to 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 December 31, 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
December 31, 1994, the results of its operations for the year then ended,
the changes in its net assets for each of the two years in the period then
ended, and the financial highlights for each of the two years in the period
then ended , for the two month period ended December 31, 1992, for the year
ended October 31, 1992 and for the period October 4, 1991 (commencement of
operations) to October 31, 1991, in conformity with generally accepted
accounting principles.
/s/COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
February 10, 1995
TO CALL FIDELITY

FOR FUND INFORMATION AND QUOTES
The Fidelity Telephone Connection offers you special automated telephone
services for quotes and balances. The services are easy to use,
confidential and quick. All you need is a Touch Tone telephone.
YOUR PERSONAL IDENTIFICATION NUMBER
(PIN)
The first time you call one of our automated telephone services, we'll ask
you
to set up your Personal Identification
Number (PIN). The PIN assures that
only you have automated telephone
access to your account information.
Please have your Customer Number
(T-account #) handy when you call --
you'll need it to establish your PIN. If
you would ever like to change your PIN, just choose the "Change your
Personal
Identification Number" option when
you call. If you forget your PIN, please
call a Fidelity representative at 1-800-
544-6666 for assistance.

(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND
QUOTES*
1-800-544-8544
Just make a selection from this record-ed menu:
PRESS
For quotes on funds you own.
1.
For an individual fund quote.
2.
For the ten most frequently
requested Fidelity fund quotes.
3.
For quotes on Fidelity Select
Portfolios.(registered trademark)
4.
To change your Personal
Identification Number (PIN).
5.
To speak with a Fidelity
representative.
6.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND
ACCOUNT
BALANCES 1-800-544-7544
Just make a selection from this record-
ed menu:
PRESS
For balances on funds you own.
1.
For your most recent fund activity
(purchases, redemptions, and
dividends).
2.
To change your Personal
Identification Number (PIN).
3.
To speak with a Fidelity
representative.
4.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD AND
RETURN WILL
VARY AND, EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS
MEANS THAT
YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO
ASSURANCE THAT
MONEY MARKET FUNDS WILL BE ABLE TO MAINTAIN A STABLE $1 SHARE PRICE; AN
INVESTMENT IN
A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.
TOTAL
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE, REINVESTMENT OF
DIVIDENDS
AND CAPITAL GAINS, AND THE EFFECTS OF ANY SALES CHARGES.
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
Arthur S. Loring, Secretary
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
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
Ginnie Mae
Global Bond
Government Securities
Intermediate Bond
Investment Grade Bond
Mortgage Securities
New Markets Income
Short-Intermediate Government
Short-Term Bond
Short-Term World Income
Spartan(Registered trademark) Ginnie Mae
Spartan Government Income
Spartan High Income
Spartan Investment Grade Bond
Spartan Limited Maturity Government
Spartan Long-Term Government Bond
Spartan Short-Intermediate Government
Spartan Short-Term Income
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)
(registered trademark)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE

(2_FIDELITY_LOGOS)FIDELITY

GLOBAL BOND
FUND
ANNUAL REPORT
DECEMBER 31, 1994
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

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

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

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

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

NOTES 22 Notes to the financial statements.

REPORT OF INDEPENDENT 28 The auditors' opinion.
ACCOUNTANTS

DISTRIBUTION 29

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 yields.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1994 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Global Bond -16.31% 34.86% 80.66%

Salomon Brothers World Government Bond Index 2.34% 58.69% n/a

Average General World Income Fund -6.49% 43.77% n/a

Consumer Price Index 2.67% 18.72% 35.48%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one year, five years or since the fund
started on December 30, 1986. For example, if you had invested $1,000 in a
fund that had a 5% return over the past year, you would have $1,050. You
can compare these figures to the performance of the Salomon Brothers World
Government Bond Index - a widely used world government bond indicator. You
can also compare them to the average general world income fund, which
currently reflects the performance of 106 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 (CPI) 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 DECEMBER 31, 1994 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Global Bond -16.31% 6.16% 7.66%

Salomon Brothers World Government Bond Index 2.34% 9.68% n/a

Average General World Income Fund -6.49% 7.49% n/a

Consumer Price Index 2.67% 3.49% 3.87%

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
Global Bond Fund (45World Government Bon
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
07/31/94 18300.48 20289.95
08/31/94 18527.80 20218.93
09/30/94 18528.75 20364.51
10/31/94 18613.18 20690.34
11/30/94 18690.19 20404.81
12/30/94 17975.80 20461.95
$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity
Global Bond Fund on December 31, 1986, shortly after the fund started. As
the chart shows, by December 31, 1994, the value of your investment would
have grown to $17,976 - a 79.76% 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 $20,462 - a 104.62% 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

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED DECEMBER 31, 1994 PAST PAST 6 PAST 1
MONTH MONTHS YEAR

Dividends per share A 6.48(cents) 36.04(cents) 69.04(cents)

Annualized dividend rate 7.48% 6.92% 6.35%

30-day annualized yield 8.36% - -

</TABLE>

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
$10.20 over the past month, $10.33 over the past six months and $10.87 over
the past year, you can compare the fund's income over these three periods.
The 30-day annualized YIELD is a standard formula for all funds based on
the yields of the bonds in the fund, averaged over the past 30 days. This
figure shows you the yield characteristics of the fund's investments at the
end of the period. 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.
A NON-TAXABLE DIVIDENDS: DIVIDENDS PAID ARE BASED ON THE FUND'S INVESTMENT
INCOME AND DO NOT REFLECT CURRENCY RELATED LOSSES. AS A RESULT OF CURRENCY
LOSSES, DIVIDENDS OF APPROXIMATELY 41.1(cents) PER SHARE PAID DURING 1994
WERE A NON-TAXABLE RETURN OF CAPITAL. THE EXACT NON-TAXABLE AMOUNT TO USE
IN PREPARING YOUR INCOME TAX RETURN WILL DEPEND ON YOUR SHARE ACTIVITY AND
WAS REPORTED TO YOU IN JANUARY 1995.
FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
Most global bond markets were
hurt by rising interest rates during
the 12 months ended December
31, 1994. Starting in February, the
Federal Reserve Board raised
U.S. short-term interest rates six
times in 1994. Higher interest
rates followed in many foreign
countries. Yields rose - and
prices fell - on most fixed-income
investments. The sell-off that
resulted was most pronounced in
emerging markets, where many
investors held highly leveraged
positions - investments made
with borrowed money. Emerging
market issues showed some
signs of strengthening in the
second half of the year, until
December 19, when Mexico
devalued the peso. This had a
corresponding negative effect on
other emerging markets. The J.P.
Morgan Emerging Markets Bond
Index fell 18.68% for the 12
months ended December 31,
1994. Developed markets
recovered somewhat during the
second half of the year, with bond
holders benefiting from higher
yields and lower volatility. The
Salomon Brothers World
Government Bond Index -
which measures bond market
performance in developed
nations and includes U.S. issues
- - rose 2.34% for the year. For
comparison, the Lehman
Brothers Aggregate Bond Index
- - a broad measure of taxable
bonds in the U.S. market -
returned -2.92% for the year.
An interview with Jonathan Kelly, Portfolio Manager of Fidelity Global Bond
Fund
Q. JONATHAN, HOW HAS THE FUND PERFORMED?
A. For the 12 months ended December 31, 1994, the fund had a total return
of -16.31%. The average general world income fund returned -6.49% over the
same period, according to Lipper Analytical Services. I'd like to point out
that all of the loss occurred during the first half of the year. Over the
past six months - as I've followed through on my plan to reduce the amount
of emerging market debt to about 20% of the fund- the fund achieved a small
positive return and finished much closer to the Lipper average than it
otherwise would have finished. The fund was poised for an even stronger
performance for the past six months, but suffered from the fallout from
Mexico's currency crisis at the end of December.
Q. IS THAT CRISIS THE MAIN REASON WHY THE FUND'S PERFORMANCE FELL BELOW THE
AVERAGE FOR THE YEAR?
A. Not really. As I said, it was more tied to the fund's positioning in the
first half of the year. At that time, the fund had a much larger stake in
emerging markets than it does now. These markets fell in sympathy with the
U.S. market - and even further - when the Federal Reserve Board started
raising short-term interest rates in February. Another factor affecting
performance was that I fully hedged the fund's European currency exposure.
When the dollar depreciated, especially during the first half of the year,
the fund missed an opportunity to add value through currency gains.
Q. HOW DID THE PROBLEMS WITH CURRENCY DEVALUATION IN MEXICO AFFECT THE
FUND?
A. First of all, the fund had approximately 10% Mexican peso exposure when
the crisis began, meaning that some of the fund's Mexican investments were
not protected against depreciation. These investments were intended to take
advantage of higher interest rates, which was consistent with my focus on
boosting the yield of the fund. I was purchasing one-month and three-month
CDs from the Mexican government that were yielding 16% to 18%, and cashing
them in to buy new ones as they matured on a monthly basis. Unfortunately,
many of these investments were set to mature in late December or early
January. By the end of the period, the fund still had a stake in Latin
American Brady bonds - dollar-denominated bonds which are partially backed
by U.S. government securities - but I had sold or let mature all of the
fund's Mexican peso-denominated debt, because I believed there could be
continued downward pressure on the Mexican peso.
Q. LET'S TURN BACK TO CURRENCY HEDGING . . .
A. I use derivative investments called foreign forward currency contracts
to try to control currency risk - the risk that depreciation in the
currency of the country in which an investment is made will reduce returns
from those investments. Unfortunately, as the European currencies I hedged
appreciated versus the dollar, the fund realized losses when the contracts
matured. The risk that local currency will appreciate - making the
investment in the contract unnecessary - is the main risk associated with
foreign forward currency contracts. However, the losses in foreign currency
contracts were offset by gains in the dollar value of the hedged bonds. For
tax purposes, the currency losses will cause part of this year's dividend
to be treated as a return of capital, which won't be taxable to the fund's
shareholders.
Q. WHERE HAVE YOU BEEN FINDING OPPORTUNITIES OVER THE PAST SIX MONTHS?
A. I've been "coming home" to the U.S. because of attractive yield
opportunities, such as the two-year bond that was yielding more than 7.5%
at the end of the period. In addition, the developed, English-speaking
countries such as New Zealand, Australia and Canada - what I call the
"Dollar Bloc" - are looking attractive. That's because their central banks
are in the later stages of raising interest rates to temper inflation,
setting the stage for a more favorable bond market.
Q. WHAT'S YOUR OUTLOOK FOR 1995?
A. Although bond markets aren't out of the woods yet, there are more
opportunities for higher yields in both the U.S. and the Dollar Bloc. And
while most European central banks haven't followed suit by raising interest
rates, there is still some value in long-term bonds in the core countries,
such as Germany and France, and the intermediate-term sector of the U.K. My
outlook is cautiously optimistic; but bond yields are higher than they were
a year ago, and rates on shorter-term bonds - which tend to be less
volatile - are attractive.
FUND FACTS
GOAL: high total return by
investing in debt securities
from around the world
START DATE: December 30, 1986
SIZE: as of December 31, 1994
more than $382 million
MANAGER: Jonathan Kelly,
since October 1993; Fidelity
Advisor Emerging Markets
and New Markets Income
Funds, both since January
1995; joined Fidelity in 1991
(checkmark)
JONATHAN KELLY ON EMERGING
MARKET INVESTING:
"Given the volatility of
emerging markets in 1994, I've
continued to limit the fund's
emerging market exposure to
around 20% of the fund's
investments. Most, if not all, of
my emerging market
investments have been - and
will continue to be - Brady
bonds. These securities are
dollar-denominated, and many
have their principal backed by
U.S. bonds. However, the Brady
bonds are still susceptible to the
negative influence of broad
emerging market volatility. For
instance, nearly all Brady bonds
- - including those the fund held
in Argentina and Brazil -
dropped in value as a result of
the Mexican currency crisis,
even in countries where the
economic backdrop was quite
positive.
"In spite of their volatility, I
won't eliminate emerging
market investments from the
portfolio altogether because
they continue to offer an
attractive way to take
advantage of higher yields.
Instead, I believe the fund can
benefit from emerging market
investments, and, at the same
time, limit its volatility by
keeping emerging market
investments to around 20% of
the fund."
(solid bullet) The top two emerging
market countries in the fund
were Argentina at 13.8% and
Brazil at 6.7% at the end of the
period. These countries were
affected negatively by the
fallout from the Mexican
currency situation, but have
made progress distinguishing
themselves economically from
Mexico.
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 change and their currency exposure. The top countries in each
table differ because some securities have more interest-rate risk than
others, because securities issued in one country may be denominated in
another country's currency, and because of the effects of currency hedging.
TOP COUNTRIES AS OF DECEMBER 31, 1994
(BY LOCATION OF ISSUER) % OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

United States 39 28

Argentina 14 18

United Kingdom 8 7

Brazil 7 5

Germany 6 2

TOP COUNTRIES ARE BASED ON THE LOCATION OF THE ISSUER OF EACH SECURITY,
INDICATING WHERE THE FUND IS EXPOSED TO POLITICAL AND CREDIT RISKS. THE
FUND'S LARGEST POSITION AS OF DECEMBER 31 WAS IN SECURITIES OF UNITED
STATES ISSUERS.
TOP INTEREST-RATE EXPOSURES AS OF DECEMBER 31, 1994
(ESTIMATED, BY COUNTRY) % OF FUND'S % OF FUND'S INTEREST-
TOTAL INTEREST-RATE RATE EXPOSURE
EXPOSURE SIX MONTHS AGO

United States 22 30

Germany 18 6

France 13 11

United Kingdom 8 9

Argentina 8 4

FIDELITY ESTIMATES INTEREST-RATE EXPOSURES BASED ON THE DURATION, OR
INTEREST-RATE SENSITIVITY, OF THE FUND'S HOLDINGS. AS OF DECEMBER 31, THE
FUND WAS MOST SENSITIVE TO INTEREST-RATE MOVEMENTS IN THE U.S., WHICH
ACCOUNTED FOR APPROXIMATELY 22% OF THE FUND'S INTEREST-RATE EXPOSURE.
TOP CURRENCY EXPOSURES AS OF DECEMBER 31, 1994
(ESTIMATED, BY CURRENCY) % OF FUND'S % OF NET ASSETS
NET ASSETS SIX MONTHS AGO

U.S. dollar 74 29

Singapore dollar 7 5

New Zealand dollar 5 5

Indonesian rupiah 4 4

Argentine peso 3 3

THE U.S. DOLLAR EXPOSURE ABOVE INCLUDES THE EFFECTS OF FOREIGN INVESTMENTS
WHOSE CURRENCY RISK IS FULLY HEDGED. THE SINGAPORE DOLLAR, AT APPROXIMATELY
7% OF ASSETS, WAS THE FUND'S LARGEST FOREIGN CURRENCY EXPOSURE AS OF
DECEMBER 31.
INVESTMENTS DECEMBER 31, 1994

Showing Percentage of Total Value of Investment in Securities

CORPORATE BONDS - 6.6%
MOODY'S RATINGS (B) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (A) (NOTE 1)
CONVERTIBLE BONDS - 3.2%
JAPAN - 3.2%
Canon, Inc. 1.30%, 12/19/08 (b) A JPY 900,000 $ 10,375,940
Nitto Denko Corp. 3.90%, 3/30/ 01 (b) - JPY 170,000 2,155,890
TOTAL CONVERTIBLE BONDS 12,531,830
NONCONVERTIBLE BONDS - 3.4%
ARGENTINA - 1.5%
Alto Parana:
euro 12%, 3/4/95 - 1,000,000 650,000
12%, 3/4/95 (d) - 1,000,000 650,000
12%, 3/4/95 (d) - 3,000,000 1,950,000
Brid Sapic euro 11 3/4%, 2/24/97 - 2,500,000 2,459,375
5,709,375
CZECH REPUBLIC - 0.5%
Ceskoslovenska Obchodni Banka 11 1/8%,
8/26/97 (c) - CSK 52,000,000 1,838,797
MEXICO - 1.4%
First Mexican Acceptance Corp. SA euro
10 3/4%, 9/15/96 - 1,500,000 1,478,190
Grupo Dina (Consorcio G) 10 1/2%,
11/18/97 - 2,070,000 1,718,100
Grupo Industrial Durango SA 9.6875%,
11/18/96 (d) (e) BB 2,400,000 2,256,000
5,452,290
TOTAL NONCONVERTIBLE BONDS 13,000,462
TOTAL CORPORATE BONDS
(Cost $27,288,641) 25,532,292
GOVERNMENT OBLIGATIONS (F) - 76.8%
MOODY'S RATINGS (B) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (A) (NOTE 1)
ARGENTINA - 12.3%
Argentina Republic:
Brady euro 4 1/4%, 3/31/23 (e) B1 $ 10,000,000 $ 4,200,000
BOCON 6%, 4/1/01 (e) B1 41,488,394 26,339,902
Peso Letras 0%, 2/24/95 - ARP 12,250,000 11,867,611
Province of Chaco 11 7/8%, 9/10/97 (c) - 5,400,000 5,346,000
Province of Cordoba 10%, 1/28/95 (c) - 258,335 240,251
47,993,764
AUSTRALIA - 5.4%
Commonwealth of Australia 9%, 9/15/04 Aa2 AUD 29,000,000 21,113,081
BRAZIL - 6.7%
Brazil Federative Republic:
IDU euro 7.8125%, 1/1/01 (e) B1 21,735,000 18,148,725
8%, 4/15/14 B2 16,218,000 7,764,368
25,913,093
BULGARIA - 0.8%
Republic of Bulgaria 6.0625%, 7/28/24
Tranche A (e) - 7,000,000 3,255,000
CANADA - 3.5%
Canadian Government 9%, 12/1/04 Aaa CAD 19,000,000 13,455,453
CZECH REPUBLIC - 0.5%
Czech Republic 14%, 7/8/96 - CSK 50,000,000 1,848,604
DENMARK - 1.7%
Danish Government:
Bullet 7%, 12/15/04 Aa1 DKK 20,500,000 2,921,543
7%, 11/10/24 Aaa DKK 28,000,000 3,497,928
6,419,471
FINLAND - 1.1%
Finland Government 9 1/2%, 3/15/04 Aa2 FIM 20,000,000 4,059,440
GOVERNMENT OBLIGATIONS (F) - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (A) (NOTE 1)
FRANCE - 3.7%
French Government:
8 1/2%, 12/26/12 Aaa FRF 35,000,000 $ 6,580,945
Strip 10/25/19 Aaa FRF 350,000,000 7,921,004
14,501,949
GERMANY - 6.0%
Federal Republic of Germany 6 1/4%,
1/4/24 Aaa DEM 45,000,000 23,523,717
ITALY - 1.9%
Italian Government 8 1/2%, 1/1/04 (b) - ITL 15,000,000 7,505,327
MEXICO - 0.8%
Mexican Government Brady 6.63%, 12/31/19 Ba2 FRF 35,000,000 3,262,602
Mexico Value Recovery (rights) (g) - 8,700,000 87
3,262,689
UNITED KINGDOM - 8.3%
United Kingdom Treasury 10%, 2/26/01 Aaa GBP 19,500,000 32,198,184
UNITED STATES OF AMERICA - 24.1%
U.S. Treasury Notes:
7 1/4%, 11/30/96 Aaa 40,000,000 39,693,600
6 1/4%, 2/15/03 Aaa 42,000,000 37,983,540
5 3/4%, 8/15/03 Aaa 8,930,000 7,760,706
7 7/8, 11/15/04 Aaa 8,560,000 8,584,054
94,021,900
TOTAL GOVERNMENT OBLIGATIONS
(Cost $303,627,564) 299,071,672
INTEREST INDEXED SECURITIES - 3.0%
UNITED STATES OF AMERICA - 3.0%
Bankers Trust Company note:
5.20313%, 3/15/95 (inversely indexed to 3
month DEM LIBOR rate, multiplied by 10) 1,948,000 1,964,948
INTEREST INDEXED SECURITIES - CONTINUED
PRINCIPAL VALUE
AMOUNT (A) (NOTE 1)
UNITED STATES OF AMERICA - CONTINUED
5.37%, 3/15/95 (inversely indexed to 3
month DEM LIBOR rate, multiplied by 10) $ 2,000,000 $ 2,024,200
5.81%, 3/15/95 (inversely indexed to 3
month DEM LIBOR rate, multiplied by 10) 2,000,000 2,035,800
Citibank Nassau cert. of dep.:
5.13%, 3/15/95 (inversely indexed to 3 month
DEM LIBOR rate multiplied by 10) 2,000,000 1,968,200
5.12%, 3/15/95 (inversely indexed to 3 month
DEM LIBOR rate multiplied by 10) 2,000,000 1,955,400
5.17%, 3/15/95 (inversely indexed to 3 month
DEM LIBOR rate multiplied by 10) 1,925,000 1,942,133
TOTAL INTEREST INDEXED SECURITIES
(Cost $11,873,000) 11,890,681
CERTIFICATES OF DEPOSIT - 1.0%
THAILAND - 1.0%
Thai Farmers Bank Republic Co.
10.10%, 8/9/96 THB 50,000,000 2,008,565
Thai Military Bank Ltd. 8%, 10/28/96 THB 50,000,000 1,910,175
TOTAL CERTIFICATES OF DEPOSIT
(Cost $3,996,519) 3,918,740
COMMERCIAL PAPER - 0.8%
NETHERLANDS - 0.8%
Unilever NV 0%, 4/6/95 (Cost $3,146,062) CSK 90,000,000 3,118,342
REPURCHASE AGREEMENTS - 11.8%
MATURITY
AMOUNT
Investments in repurchase agreements,
(U.S. Treasury obligations), in a
joint trading account at 5.77%,
dated 12/30/94 due 1/3/95 $ 46,045,501 46,016,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $395,947,786) $ 389,547,727
FORWARD FOREIGN CURRENCY CONTRACTS
SETTLEMENT UNREALIZED
DATE(S) VALUE GAIN/(LOSS)
CONTRACTS TO BUY
11,556,928 AUD 1/30/95 $ 8,946,911 $ 20,539
7,327,835 CAD 1/30/95 5,226,813 (104,697)
51,246,707 DEM 1/5/95 to 1/30/95 33,083,907 203,968
38,477,156 FRF 1/11/95 to 3/7/95 7,210,497 78,669
33,870,000,000 IDR 3/20/95 to 6/22/95 14,979,943 (20,057)
14,061,362,040 ITL 1/17/95 8,667,077 (48,954)
424,962,500 JPY 1/30/95 4,274,782 11,332
40,432,304 NZD 6/7/95 25,578,799 552,846
39,006,500 SGD 1/27/95 to 2/10/95 26,799,453 96,549
TOTAL CONTRACTS TO BUY
(Payable amount $133,977,987) $ 134,768,182 790,195
THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 34.6%
CONTRACTS TO SELL
24,944,299 AUD 1/30/95 19,310,878 (156,586)
26,166,245 CAD 1/30/95 18,663,912 728,247
85,627,873 DEM 1/5/95 to 3/7/95 55,294,402 684,188
31,289,867 DKK 2/17/95 5,144,160 (32,968)
20,761,840 FIM 3/20/95 4,388,452 (88,780)
141,303,810 FRF 1/11/95 to 3/7/95 26,485,206 (180,998)
20,428,128 GBP 2/7/95 31,994,535 720,198
25,083,853,920 ITL 1/17/95 15,461,069 387,538
1,934,565,000 JPY 1/30/95 19,460,173 (38,263)
7,749,452 NZD 6/7/95 4,902,536 930
TOTAL CONTRACTS TO SELL
(Receivable amount $203,128,829) $ 201,105,323 2,023,506
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 51.6%
$ 2,813,701
CURRENCY ABBREVIATIONS
ARP - Argentine peso
AUD - Australian dollar
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
NZD - New Zealand dollar
SGD - Singapore dollar
THB - Thai baht
LEGEND
(h) Principal amount is stated in United States dollars unless otherwise
noted.
(i) Principal amount in thousands.
(j) 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
Ceskoslovenska
Obchodni Banka
11 1/8%, 8/26/97 9/1/94 $ 1,863,732
Province of Chaco
11 7/8%, 9/10/97 3/9/94 5,547,749
Province of Cordoba 1/27/94 191,668
10%, 1/28/95 5/31/94 66,667
(k) 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 $4,856,000 or 1.3% of net
assets.
(l) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(m) Some 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.
(n) Non-income producing
(o) Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
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 56.4% AAA, AA, A 56.4%
Baa 0.0% BBB 0.0%
Ba 0.8% BB 1.4%
B 14.5% 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 9.0% including long-term debt
categorized
as other securities. FMR has determined that unrated debt securities that
are lower quality account for 4.0% of the total value of investment in
securities.
INCOME TAX INFORMATION
At December 31, 1994, the aggregate cost of investment securities for
income tax purposes was $398,691,171. Net unrealized depreciation
aggregated $9,143,444, of which $4,274,500 related to appreciated
investment securities and $13,417,944 related to depreciated investment
securities.
At December 31, 1994, the fund had a capital loss carryforward of
approximately $82,106,000 all of which will expire on December 31, 2002.
The fund has elected to defer to its fiscal year ending December 31, 1995
$3,982,000 of losses recognized during the period November 1, 1994 to
December 31, 1994.
For the period ended December 31, 1994, interest from foreign countries
were $27,798,562 or $0.72 per share. Taxes paid to foreign countries were
$741,553 or $0.02 per share.
INDUSTRY DIVERSIFICATION
As a Percentage of Total Value of Investments
Basic Industries 1.4%
Durables 0.4
Energy 0.6
Finance 5.3
Government Obligations 76.8
Media & Leisure 0.4
Repurchase Agreements 11.8
Technology 3.3
100.0%
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
DECEMBER 31, 1994

ASSETS

Investment in securities, at value (including repurchase $ 389,547,727
agreements of $46,016,000) (cost $395,947,786) -
See accompanying schedule

Receivable for investments sold 7,881,793

Unrealized appreciation on foreign currency contracts 3,723,500

Receivable for closed foreign currency contracts 514,881

Interest receivable 7,734,091

Other receivables 502,071

TOTAL ASSETS 409,904,063

LIABILITIES

Payable to custodian bank $ 581,817

Payable for investments purchased 21,785,837

Unrealized depreciation on foreign currency contracts 909,799

Payable for closed foreign currency contracts 23,627

Payable for fund shares redeemed 3,118,990

Dividends payable 156,855

Accrued management fee 252,831

Other payables and accrued expenses 271,792

TOTAL LIABILITIES 27,101,548

NET ASSETS $ 382,802,515

Net Assets consist of:

Paid in capital $ 479,053,010

Distributions in excess of net investment income (8,617,556)

Accumulated undistributed net realized gain (loss) on (84,461,887)
investments and foreign currency transactions

Net unrealized appreciation (depreciation) on (3,171,052)
investments and assets and liabilities in foreign
currencies

NET ASSETS, for 38,740,823 shares outstanding $ 382,802,515

NET ASSET VALUE, offering price and redemption price per $9.88
share ($382,802,515 (divided by) 38,740,823 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED DECEMBER 31, 1994

INVESTMENT INCOME $ 116,545
Dividends

Interest 43,019,320

43,135,865

Less foreign taxes withheld (741,553)

TOTAL INCOME 42,394,312

EXPENSES

Management fee $ 3,938,370

Transfer agent fees 1,373,885

Accounting fees and expenses 312,138

Non-interested trustees' compensation 3,304

Custodian fees and expenses 476,787

Registration fees 45,487

Audit 91,764

Legal 12,341

Interest 53,707

Reports to shareholders 5,825

Miscellaneous 5,351

Total expenses 6,318,959

NET INVESTMENT INCOME 36,075,353

REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:

Investment securities (94,253,458)

Foreign currency transactions (15,643,682)

Futures contracts 249,193 (109,647,947)

Change in net unrealized appreciation (depreciation) on:

Investment securities (44,440,923)

Assets and liabilities in foreign currencies 4,668,433 (39,772,490)

NET GAIN (LOSS) (149,420,437)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ (113,345,084)
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1994 1993

INCREASE (DECREASE) IN NET ASSETS

Operations $ 36,075,353 $ 29,485,504
Net investment income

Net realized gain (loss) (109,647,947) 11,261,922

Change in net unrealized appreciation (depreciation) (39,772,490) 45,885,713

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (113,345,084) 86,633,139
FROM OPERATIONS

Distributions to shareholders: (11,242,839) (22,241,596)
From net investment income

In excess of net investment income (2,708,940) -

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

In excess of net realized gain (1,579,995) (8,138,598)

Return of capital (20,501,873) -

TOTAL DISTRIBUTIONS (36,033,647) (41,642,116)

Share transactions 657,341,508 684,294,760
Net proceeds from sales of shares

Reinvestment of distributions 32,369,334 37,152,801

Cost of shares redeemed (843,781,261) (359,391,059)

Net increase (decrease) in net assets resulting from (154,070,419) 362,056,502
share transactions

TOTAL INCREASE (DECREASE) IN NET ASSETS (303,449,150) 407,047,525

NET ASSETS

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

End of period (including distributions in excess $ 382,802,515 $ 686,251,665
of net investment income of $(8,617,556) and
$(5,486,305), respectively)

OTHER INFORMATION
Shares

Sold 58,056,699 56,470,051

Issued in reinvestment of distributions 2,994,322 3,054,696

Redeemed (76,721,130) (29,744,063)

Net increase (decrease) (15,670,109) 29,780,684

</TABLE>

FINANCIAL HIGHLIGHTS

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

SELECTED PER-SHARE 1994 1993 1992 1992 D 1991 1990
DATA

Net asset value, $ 12.610 $ 11.340 $ 11.830 $ 11.980 $ 12.190 $ 11.220
beginning of period

Income from .569 .731 .145 .839 .74 .89 E
Investment
Operations
Net investment
income

Net realized and un- (2.589) 1.648 (.173) .110 .52 .57
realized gain (loss)

Total from (2.020) 2.379 (.028) .949 1.26 1.46
investment
operations

Less Distributions (.225) (.629) (.332) (1.099) (1.03) (.49)
From net investment
income

In excess of net (.054) - - - - -
investment income

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

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

Return of capital (.411) - - - - -

Total distributions (.710) (1.109) (.462) (1.099) (1.47) (.49)

Net asset value, $ 9.880 $ 12.610 $ 11.340 $ 11.830 $ 11.980 $ 12.190
end period

TOTAL RETURN B,F (16.31)% 21.91% (.23)% 8.18 11.31% 13.45
% %

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of $ 383 $ 686 $ 279 $ 332 $ 160 $ 126
period (in millions)

Ratio of expenses to 1.14% 1.17% 1.37% A 1.23 1.35% 1.40
average net assets % %

Ratio of net investment 6.50% 6.79% 6.92% A 8.02 7.92% 7.82
income to average % %
net assets

Portfolio turnover rate 367% 198% 142% A 81 228% 154
% %

</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 NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
F THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIOD SHOWN (SEE NOTE 7 OF NOTES TO FINANCIAL
STATEMENTS).
NOTES TO FINANCIAL STATEMENTS
For the period ended December 31, 1994

7. SIGNIFICANT ACCOUNTING
POLICIES.
Fidelity Global Bond (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 of their purchase date 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 investment securities.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to U.S. federal
income taxes to the extent that it distributes all of its taxable income
for its fiscal year. 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 and may
affect net investment income per share. Distributions in excess of 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 December 31, 1994, the fund's distributions exceeded
the aggregate amount of taxable income and net realized gains resulting in
a return of capital. This was due to certain foreign currency losses which
decreased taxable income available for distribution after certain
distributions had been made. (The tax treatment of distributions for the
1994 calendar year was reported to shareholders prior to February 1, 1995.)
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.
8. OPERATING POLICIES.
FORWARD FOREIGN CURRENCY CONTRACTS. The fund may use foreign currency
contracts to facilitate transactions in foreign securities and to manage
the fund's currency exposure. Contracts to buy generally are used to
acquire exposure to foreign currencies, while contracts to sell are used to
hedge the fund's investments against currency fluctuations. Also, a
contract to buy or sell can offset a previous contract. These contracts
involve market risk in excess of the unrealized gain or loss reflected in
the fund's Statement of Assets and Liabilities. The U.S. dollar value of
the currencies the fund has committed to buy or sell is shown in the
schedule of investments under the caption "Forward Foreign Currency
Contracts." This amount
2. OPERATING POLICIES -
CONTINUED
FORWARD FOREIGN CURRENCY
CONTRACTS - CONTINUED
represents the aggregate exposure to each currency the fund has acquired or
hedged through currency contracts at period end. Losses may arise from
changes in the value of the foreign currency or if the counterparties do
not perform under the contracts' terms.
The U.S. dollar value of forward foreign currency contracts is determined
using forward currency exchange rates supplied by a quotation service.
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. Contracts that have been offset with different
counterparties are reflected as both a contract to buy and a contract to
sell in the schedule of investments under the caption "Forward Foreign
Currency Contracts."
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
affiliated entities of FMR, may transfer uninvested cash balances into one
or more joint trading accounts. These balances are invested in one or more
repurchase agreements that mature in 60 days or less from the date of
purchase, and are collateralized by U.S. Treasury or Federal Agency
obligations.
FUTURES CONTRACTS AND OPTIONS.
The fund may use futures and options contracts to manage its exposure to
the bond market and to fluctuations in interest rates and currency values.
Buying futures, writing puts, and buying calls tend to increase the fund's
exposure to the underlying instrument. Selling futures, buying puts, and
writing calls tend to decrease the fund's exposure to the underlying
instrument, or hedge other fund investments. Losses may arise from changes
in the value of the underlying instruments, if there is an illiquid
secondary market for the contracts, or if the counterparties do not perform
under the contracts' terms.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Exchange-traded
options are valued using the last sale price or, in the absence of a sale,
the last offering price. Options traded over-the-counter are valued using
dealer-supplied valuations.
INDEXED SECURITIES. The fund may invest in indexed securities whose values
are linked either directly or inversely to changes in foreign currencies,
interest rates, commodities, indices, or other underlying instruments. The
fund uses
2. OPERATING POLICIES -
CONTINUED
INDEXED SECURITIES - CONTINUED
these securities to increase or decrease its exposure to different
underlying instruments and to gain exposure to markets that might be
difficult to invest in through conventional securities. Indexed securities
may be more volatile than their underlying instruments, but any loss is
limited to the amount of the original investment.
RESTRICTED SECURITIES. The fund is permitted to invest in privately placed
restricted securities. These securities may be resold in transactions
exempt from registration or to the public if the securities are registered.
Disposal of these securities may involve time-consuming negotiations and
expense, and prompt sale at an acceptable price may be difficult. At the
end of the period, restricted securities (excluding 144A issues) amounted
to $7,425,048 or 1.9% of net assets.
9. PURCHASES AND SALES
OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $1,694,535,023 and $1,874,198,881, respectively.
The market value of futures contracts opened and closed during the period
amounted to $66,834,193 and $65,701,776, 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 December 31, 1994 - $ -
10. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, Fidelity Management &
Research Company (FMR) receives a monthly fee that is calculated on the
basis of a group fee rate plus a fixed individual fund fee rate applied to
the average net assets of the fund. The group fee rate is the weighted
average of a series of rates and is based on the monthly average net assets
of all the mutual funds advised by FMR. The rates ranged from .1325% to
.3700% for the period January 1, 1994 to July 31, 1994 and .1200% to .3700%
for the period August 1, 1994 to December 31, 1994. In the event that these
rates were lower than the contractual rates in effect during those periods,
FMR voluntarily implemented the above rates, as they resulted in the same
or a lower management fee. The annual individual fund fee rate is .55%. For
the period, the management fee was equivalent to an annual rate of .71% of
average net assets.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
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 $48,197 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.
11. 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 $28,214,000 and $19,015,571,
respectively. The weighted average interest rate was 3.7%. Interest expense
includes $13,576 paid under the 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.
12. 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 $22,610,000 and $9,762,194,
respectively. The weighted average interest rate was 4.8%.
13. 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 Global Bond Fund:
We have audited the accompanying statement of assets and liabilities of
Fidelity Investment Trust: Fidelity Global Bond Fund, including the
schedule of portfolio investments, as of December 31, 1994, and the related
statement of operations for the year then ended, the statements of changes
in net assets for each of the two years in the period then ended, and the
financial highlights for each of the two years in the period then ended,
for the two month period ended December 31, 1992 and for each of the three
years in the period ended October 31, 1992. These financial statements and
financial highlights are the responsibility of the fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included con- firmation of
securities owned as of December 31, 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
as of December 31, 1994, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the
period then ended, and the financial highlights for each of the two years
in the period then ended, for the two month period ended December 31, 1992
and for each of the three years in the period ended October 31, 1992, in
conformity with generally accepted accounting principles.
/s/COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
February 10, 1995
DISTRIBUTIONS

A total of 2.6% of the dividends distributed during the fiscal year was
derived from interest on U.S. Government securities which is generally
exempt from state income tax.
The fund notified shareholders in January 1995 of the applicable percentage
for use in preparing 1994 income tax returns.
TO CALL FIDELITY

If more than one address is listed, please locate the address that is
closest to you. We'll give your correspondence immediate attention and send
you written confirmation upon completion of your request.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
100 Crosby Parkway - KP2C
Covington, KY 41015-4399
SELLING SHARES
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Fidelity Investments
P.O. Box 30281
Salt Lake City, UT 84130-0281
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions
World Trade Center
164 Northern Avenue
Boston, MA 02210
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602

INVESTMENT ADVISER
Fidelity Management & Research
Company
Boston, MA
INVESTMENT SUB-ADVISERS
Fidelity Management & Research
(U.K.) Inc. London, England
Fidelity Management & Research
(Far East) Inc. Tokyo, Japan
Fidelity International Investment
Advisors
Fidelity International Investment
Advisors (U.K.) Limited
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Arthur S. Loring, Secretary
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
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
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)
(registered trademark)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE

(2_FIDELITY_LOGOS)FIDELITY

NEW MARKETS INCOME
FUND
ANNUAL REPORT
DECEMBER 31, 1994
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

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

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

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

FINANCIAL STATEMENTS 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 29 The auditors' opinion.
ACCOUNTANTS

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMA-
TION 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 IN-
VESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. NEITHER THE FUND
NOR FIDELITY
DISTRIBUTORS CORPORATION IS A BANK. FOR MORE INFORMATION ON ANY FIDELITY
FUND, INCLUDING
CHARGES AND EXPENSES, CALL 1-800-544-8888 FOR A FREE PROSPECTUS. READ IT
CAREFULLY BEFORE
YOU INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE

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. A fund's total
return includes changes in a fund's share price, plus reinvestment of any
dividends (or income) and capital gains (the profits the fund earns when it
sells investments that have grown in value). You can also look at the
fund's income to measure performance. If Fidelity had not reimbursed
certain fund expenses during the periods shown, the total returns and
dividends would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1994 PAST 1 LIFE OF
YEAR FUND

New Markets Income -16.55% 15.86%

J.P. Morgan Emerging Markets Bond Index -18.68% n/a

Average General World Income Fund -6.49% n/a

Consumer Price Index 2.67% 3.96%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one year, or since the fund began on May
4, 1993. For example, if you had invested $1,000 in a fund that had a 5%
return over the past year, you would end up with $1,050. You can compare
the fund's returns to those of the J.P. Morgan Emerging Markets Bond Index
- - a broad measure of bond performance in developing countries available at
month end. To measure how the fund's performance stacked up against its
peers, you can compare it to the average general world income fund, which
currently reflects the performance of 106 funds tracked by Lipper
Analytical Services. Both benchmarks include reinvested dividends and
capital gains, if any, and exclude the effects of sales charges. Comparing
the fund's performance to the consumer price index (CPI) helps show how the
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 DECEMBER 31, 1994 PAST 1 LIFE OF
YEAR FUND

New Markets Income -16.55% 9.26%

J.P. Morgan Emerging Markets Bond Index -18.68% n/a

Average General World Income Fund -6.49% n/a

Consumer Price Index 2.67% 2.35%

$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity New
Markets Income Fund on May 31, 1993, shortly after the fund started. As the
chart shows, by December 31, 1994, the value of your investment would have
grown to $11,247 - a 12.47% 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 $10,321 - a 3.21% 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

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED DECEMBER 31, 1994 PAST PAST 6 PAST
MONTH MONTHS YEAR

Dividends per share 4.32(cents) 30.21(cents) 56.59(cents)

Annualized dividend rate 4.78% 5.69% 5.23%

30-day annualized yield 9.80% - -

</TABLE>

DIVIDENDS per share show the income paid by the fund for a set period and
do not reflect any tax reclassifications. If you annualize this number,
based on an average net asset value of $10.64 over the past month, $10.54
over the past six months and $10.82 over the past year, you can compare the
fund's income over these three periods.
The 30-day annualized YIELD is a standard formula for all bond funds based
on the yields of the bonds in the fund, averaged over the past 30 days.
This figure shows you the yield characteristics of the fund's investments
at the end of the period. It also helps you compare funds from different
companies on an equal basis. It does not reflect the cost of hedging and
other currency gains and losses. If Fidelity had not reimbursed certain
fund expenses during the period shown, the yield would have been 9.58%.
FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
Most global bond markets were
hurt by rising interest rates during
the 12 months ended December
31, 1994. Starting in February, the
Federal Reserve Board raised
U.S. short-term interest rates six
times in 1994. Higher interest
rates followed in many foreign
countries. Yields rose - and
prices fell - on most fixed-income
investments. The sell-off that
resulted was most pronounced in
emerging markets, where many
investors held highly leveraged
positions - investments made
with borrowed money. Emerging
market issues showed some
signs of strengthening in the
second half of the year, until
December 19, when Mexico
devalued the peso. This had a
corresponding negative effect on
other emerging markets. The J.P.
Morgan Emerging Markets Bond
Index fell 18.68% for the 12
months ended December 31,
1994. Developed markets
recovered somewhat during the
second half of the year, with bond
holders benefiting from higher
yields and lower volatility. The
Salomon Brothers World
Government Bond Index -
which measures bond market
performance in developed
nations and includes U.S. issues
- - rose 2.34% for the year. For
comparison, the Lehman
Brothers Aggregate Bond Index
- - a broad measure of taxable
bonds in the U.S. market -
returned -2.92% for the year.
NOTE TO SHAREHOLDERS:
Robert Citrone - who managed Fidelity New Markets Income Fund since March
1994 - has left Fidelity. The following is an interview about the fund's
performance with Dwight Churchill (right photo), the head of Fidelity's
taxable bond fund group. Jonathan Kelly has taken over management of the
fund on a temporary basis. In the sidebar at the end of this report, Mr.
Kelly discusses his view of emerging markets.
Q. HOW DID THE FUND DO, DWIGHT?
A. It was a terrible year for all bond markets - especially emerging
markets - and the fund's performance reflects that. For the 12 months ended
December 31, 1994, the fund had a total return of -16.55%. During the same
period, the average general world income fund returned -6.49%, according to
Lipper Analytical Services. It's important to remember that the fund
underperformed relative to the Lipper average for the same reason it beat
the average in 1993: it invests mainly in emerging markets. Many other
funds in the group don't share that objective. The J.P. Morgan Emerging
Markets Bond Index offers another comparison. For the 12 months ended
December 31, 1994, the index had a total return of -18.68%.
Q. WHY WAS THE YEAR SO BAD FOR EMERGING MARKETS?
A. In the second half of the year, the main negative influence was Mexico's
devaluation of the peso in December. Although the fund was underweighted in
Mexico compared to its benchmark index, the problems in Mexico had
far-reaching effects on all emerging markets. The crisis shook investor
confidence, raising fears that similar events might occur elsewhere. Even
the market for Brady bonds - emerging market securities that are
dollar-denominated and partially backed by U.S. government bonds - suffered
from the fallout. As a result, the bond markets of countries such as
Argentina, Brazil and Ecuador fell sharply, even though they had more solid
economies and currencies.
Q. WHAT ABOUT EARLIER IN THE YEAR?
A. In the first half of 1994, the Federal Reserve Board's interest-rate
increases translated into problems for bond markets worldwide. Because
emerging market countries were pressured to raise interest rates to prevent
a flight of capital to developed markets, emerging market countries saw
marked rate increases and price drops. Pressure from interest-rate
increases and the Mexico situation made 1994 a difficult year for emerging
market investing.
Q. YOU MENTIONED THAT THE FUND DID SLIGHTLY BETTER THAN THE EMERGING
MARKETS BOND INDEX. WHY?
A. The fund was overweighted relative to the index in Brazil and Ecuador,
two of the best-performing markets in the last half of 1994. Bulgaria was
another country that had a positive influence on the fund's performance. We
believe Bulgaria has sufficient support from the World Bank and the
International Monetary Fund to move forward with reforms. The fund also had
a lot of floating-rate debt, which reduced the risk that rising interest
rates would hurt the fund, since floating-rate coupons - the interest the
bonds pay - reset either every 30 days or six months. These floaters did
not decline in price in the same way fixed-rate bonds did.
Q. MOST OF THE FUND'S INVESTMENTS HAVE BEEN FOCUSED IN LATIN AMERICA. WHAT
ABOUT THE FAR EAST?
A. When we choose where to invest the fund, we look for more attractive
yields relative to the risk involved with the investments. During 1994, we
felt that the best choices were in Latin America, not the Far East.
Q. LOOKING BACK OVER THE PAST SIX MONTHS, WHAT COULD HAVE BEEN DONE
DIFFERENTLY?
A. Most emerging market investors wish they could have foreseen the dire
consequences of the Mexican situation, although the devaluation came as a
complete surprise.
Q. WHAT'S YOUR OUTLOOK GOING FORWARD?
A. It's been a difficult year for fixed-income investments, especially in
the emerging markets. It looks like 1995 will be starting out with some
challenges. However, emerging market bond prices are quite compelling now,
and there have been some very productive years in the past. It appears
market fundamentals - such as growth rates, inflation and credit quality -
have improved and will continue to improve.
FUND FACTS
GOAL: high current income,
followed by share price gains,
by investing largely in bonds
and other fixed-income
securities from countries with
emerging markets
START DATE: May 4, 1993
SIZE: as of December 31,
1994, more than $179 million
MANAGER: Jonathan Kelly,
since February, 1995; Fidelity
Global Bond Fund, since
1991, and Fidelity Advisor
Emerging Markets Income
Fund, since February 1995;
joined Fidelity in 1991
(checkmark)
JONATHAN KELLY ON
EMERGING MARKETS:
"Looking forward, I'd
distinguish between short-
and long-term outlooks. Short
term, I am somewhat
cautious as a result of the
Mexican peso devaluation
and its aftermath. Mexico has
been the benchmark country
in Latin America for the past
few years and its demise has
been difficult for emerging
markets worldwide.
And although the rescue
package organized by the
U.S. and the International
Monetary Fund has helped to
reduce default risk in Mexico,
the country still faces
significant challenges. I
anticipate that market
volatility could remain high as
the Mexican shock is
digested.
"Longer term, I believe
emerging markets will
continue to produce growth
rates that exceed those in
developed countries. And
those countries that pursue
economic reform will see their
creditworthiness improve and
will offer investors attractive
rates of return. I also believe
that over time, the market will
effectively distinguish the
countries that successfully
reform and those that do not.
For example, should Mexico
continue to stumble, it would
not preclude Argentina or
Brazil from distinguishing
itself if it successfully
continues down the path of
reform."
INVESTMENT CHANGES

The charts below highlight two different aspects of the fund's investments:
the country where they were issued and their currency exposure. The top
countries in each table may differ because securities issued in one country
may be denominated in another country's currency, and because of the
effects of currency hedging.
TOP COUNTRIES AS OF DECEMBER 31, 1994
(BY LOCATION OF ISSUER) % OF FUND'S % OF FUND'S INVESTMENTS
INVESTMENTS 6 MONTHS AGO

Brazil 23.2 27.2

Ecuador 13.6 7.8

Argentina 13.5 23.3

Mexico 8.3 6.1

Bulgaria 6.9 0.0

TOP COUNTRIES ARE BASED ON THE LOCATION OF THE ISSUER OF EACH SECURITY,
INDICATING WHERE THE FUND IS EXPOSED TO POLITICAL AND CREDIT RISKS. THE
FUND'S LARGEST POSITION AS OF DECEMBER 31 WAS IN SECURITIES OF BRAZILIAN
ISSUERS.
TOP CURRENCY EXPOSURES AS OF DECEMBER 31, 1994
(ESTIMATED, BY CURRENCY) % OF FUND'S % OF NET ASSETS
NET ASSETS 6 MONTHS AGO

U.S. dollar 66 58

Brazilian real 22 18

Japanese yen 5 0

Mexican peso 2 19

Swiss franc 2 2

THE U.S. DOLLAR EXPOSURE ABOVE INCLUDES THE EFFECTS OF FOREIGN INVESTMENTS
WHOSE CURRENCY RISK IS FULLY HEDGED. THE BRAZILIAN REAL, AT APPROXIMATELY
22% OF ASSETS, WAS THE FUND'S LARGEST FOREIGN CURRENCY EXPOSURE AS OF
DECEMBER 31.
AVERAGE YEARS TO MATURITY AS OF DECEMBER 31, 1994
6 MONTHS AGO

Years 9.5 10.1

AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY DOLLAR
AMOUNT.
ASSET ALLOCATION
AS OF DECEMBER 31, 1994 AS OF JUNE 30, 1994
Row: 1, Col: 1, Value: 4.8
Row: 1, Col: 2, Value: 20.5
Row: 1, Col: 3, Value: 9.4
Row: 1, Col: 4, Value: 58.8
Row: 1, Col: 5, Value: 6.5
Row: 1, Col: 1, Value: 0.0
Row: 1, Col: 2, Value: 28.8
Row: 1, Col: 3, Value: 10.4
Row: 1, Col: 4, Value: 47.1
Row: 1, Col: 5, Value: 13.7
Corporate bonds 6.5%
Government
obligations 58.8%
Stocks 9.4%
Other 20.5%
Short-term
investments 4.8%
Corporate bonds 13.7%
Government
obligations 47.1%
Stocks 10.4%
Other 28.8%
Short-term
investments 0.0%
INVESTMENTS DECEMBER 31, 1994

Showing Percentage of Total Value of Investment in Securities

CORPORATE BONDS - 6.5%
MOODY'S RATINGS (B) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (A) (NOTE 1)
CONVERTIBLE BONDS - 5.3%
GRAND CAYMAN - 0.7%
Bank of Asia Public Co. Ltd. 3 3/4%, 2/9/04 - $ 1,405,000 $ 1,257,475
INDIA - 1.1%
Industrial Credit & Investment Corp.:
2 1/2%, 4/3/00 (f) - 70,000 51,450
euro 2 1/2%, 4/3/00 - 275,000 204,875
Nippon Denro Ispat euro 3%, 4/1/01 (f) - 1,875,000 1,270,313
SCICI Ltd. euro 3 1/2%, 4/1/04 - 470,000 408,900
1,935,538
INDONESIA - 0.7%
Inti Indorayon Utama, PT 7%, 5/2/06 - 1,500,000 1,380,000
MALAYSIA - 0.4%
Technology Resources Industries BHD
2 3/4%, 11/28/04 (f) - 750,000 716,250
PHILIPPINES - 1.9%
International Container Term Services, Inc.
unsecured 6%, 2/19/00 (f) - 2,900,000 3,393,000
THAILAND - 0.5%
Bangkok Bank Public Ltd. euro
3 1/4%, 3/3/04 (f) - 1,100,000 1,001,000
TOTAL CONVERTIBLE BONDS 9,683,263
NONCONVERTIBLE BONDS - 1.2%
MEXICO - 1.2%
First Mexican Acceptance Corp.
euro 10 3/4%, 9/15/96 - 2,000,000 1,970,920
Third Mexican Acceptance Corp. coll. notes
gtd. by Grupo Sidek SA and Grupo Situr SA
10 1/2%, 3/15/98 (f) - 250,000 203,125
TOTAL NONCONVERTIBLE BONDS 2,174,045
TOTAL CORPORATE BONDS
(Cost $13,478,018) 11,857,308
GOVERNMENT OBLIGATIONS (I) - 58.8%
MOODY'S RATINGS (B) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (A) (NOTE 1)
ARGENTINA - 11.7%
Argentina Republic:
BOCON:
0%, 4/1/01 B1 $ 3,897,971 $ 2,474,720
3.1875%, 4/1/07 B1 39,386,979 18,174,807
Letras 0%, 2/24/95 - ARP 400,000 387,514
Province of Cordoba 10%, 1/28/95 (e) - 387,500 360,375
21,397,416
BRAZIL - 19.9%
Brazil Federative Republic 8%, 4/15/14 B2 14,280,000 6,836,550
Siderurgica Brasileiras SA inflation indexed 6%,
8/15/99 (h) - BRR 166,037,600 29,449,026
36,285,576
BULGARIA - 6.9%
Republic of Bulgaria:
6.0625%, 7/28/11 - 15,500,000 6,490,625
Tranche A, 6.0625%, 7/28/24 (g) - 13,000,000 6,045,000
12,535,625
ECUADOR - 5.8%
Republic of Ecuador (f):
past due interest (j) - 26,500,000 9,738,750
7 5/8%, 12/21/04 - 1,159,000 788,120
10,526,870
MEXICO - 4.4%
Mexican Government Brady:
6 1/4%, 12/31/19 Ba3 12,000,000 6,480,000
6.63%, 12/31/19 Ba3 FRF 16,500,000 1,538,084
Mexico Value Recovery (rights) (a) - 13,757,000 138
8,018,222
NIGERIA - 3.8%
Central Bank of Nigeria promissory note
5.092% 1/5/10 - 23,500,000 6,988,430
PANAMA - 1.8%
Republic of Panama euro 7 1/8%, 5/10/02 - 4,000,000 3,240,000
GOVERNMENT OBLIGATIONS (I) - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (A) (NOTE 1)
VENEZUELA - 4.5%
Republic of Venezuela:
FLIRB:
A, 7%, 3/31/07 (g) Ba2 $ 4,500,000 $ 2,070,000
B, 7%, 3/31/07 (g) Ba2 4,750,000 2,185,000
discount 7%, 3/31/20 (g) Ba3 4,000,000 2,020,000
6 5/8%, 3/31/20 Ba3 4,000,000 2,020,000
8,295,000
TOTAL GOVERNMENT OBLIGATIONS
(Cost $108,850,615) 107,287,139
COMMON STOCKS - 8.9%
SHARES
ARGENTINA - 1.8%
Alpargatas SA Industrias Y Comercial (Reg.) (a) 1,300,000 896,961
Banco del Sud SA 40,400 307,025
Banco del Sequia Argentina Class B (a) 300,000 704,964
Banco Frances del Rio de la Prata SA 40 264
Citicorp Equity Investors Class B 71,000 301,735
Interamericania de Auto Ord. 28,900 252,862
Mirgor Sacifia Class C sponsored ADR (a)(f) 166,670 916,685
3,380,496
BRAZIL - 2.8%
Coteminas PN 947,200 324,302
Iochpe Maxion PN Ord. 2,740,000 1,908,629
Klabin Industria de Papel e Celulose PN 1,548,000 2,302,797
Minas Gerais State:
euro (warrants) (a) 2,600 156,000
preference (warrants) (a)(f) 4,500 270,000
Telebras PN (Pfd. Reg.) 2,856,467 127,827
5,089,555
MALAYSIA - 0.4%
Mycom BHD 415,000 679,344
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
MEXICO - 2.7%
BANACCI SA de CV Class C 136,000 $ 399,840
Cifra SA Class C 420,000 798,000
Elektra (Grupo) SA US CPO (a) 132,000 942,480
Empresas Ica Sociedad Controladora SA de CV sponsored
ADR representing Ord. participation certificates 35,000 542,500
Fondo Opcion SA de CV Class 2 Series B (a) 272,000 565,760
Grupo Embotellador de Mexico CPO GDR (a) 19,100 274,563
Grupo Carso SA de CV Class A-1 100,000 730,000
Tolmex SA Class B2 76,700 644,280
4,897,423
PERU - 0.8%
Southern Peru Copper Corp. T Shares (a) 256,392 1,432,970
TURKEY - 0.4%
Turkiye Garanti Bankasi ADR (f) 325,000 773,500
VENEZUELA - 0.0%
Republic of Venezuela Oil Recovery (rights) (a) 57,120 -
TOTAL COMMON STOCKS
(Cost $22,253,503) 16,253,288
CONVERTIBLE PREFERRED STOCKS - 0.5%
BRAZIL - 0.5%
Cosipa (CIA Sidurg Paulista) B
(Cost $973,837) 335,000 974,940
OTHER SECURITIES - 20.5%
PRINCIPAL
AMOUNT (C)
COLLATERALIZED NOTES - 0.0%
MEXICO - 0.0%
Ridgefield Investments Ltd. sub. participating
notes 0%, 2/2/95 (residual interest in Mexican
government securities collateral) (a)(f) $ 5,306,277 -
OTHER SECURITIES - CONTINUED
PRINCIPAL VALUE
AMOUNT (C) (NOTE 1)
PURCHASED BANK DEBT - 20.5%
ECUADOR - 7.8%
Republic of Ecuador (a):
loan participation under 1983 and 1984
extension and refinancing agreements $ 8,000,000 $ 3,700,000
loan participation under 1985 multi-year
refinancing agreement (d) JPY 1,400,000 6,159,160
loan participation 9,522,122 4,403,982
14,263,142
PANAMA - 3.5%
Republic of Panama (a):
loan participation refinanced under
credit agreement 2,000,000 1,060,000
loan participation refinanced under
credit agreement (d) JPY 814,495 4,001,044
loan participation (d) JPY 264,800 1,340,603
6,401,647
PERU - 1.3%
Empressa de Electricidad del Peru SA loan
participation (a) 4,500,000 2,362,500
RUSSIA - 5.3%
International Bank for Economic Cooperation
loan participation (a) 14,500,000 3,915,000
Bank for Foreign Economic Affairs of the USSR
(Vnesheconombank) (a):
loan participation CHF 17,000,000 3,376,623
loan participation 5,000,000 1,375,000
loan participation JPY 480,000,000 1,082,688
9,749,311
TRINIDAD & TOBAGO - 2.0%
Republic of Trinidad & Tobago loan participation (d)(g):
Tranche A, 7.1425%, 9/30/00 JPY 255,750 2,012,676
Tranche B, 8.6425%, 9/30/01 JPY 211,500 1,664,442
3,677,118
OTHER SECURITIES - CONTINUED
PRINCIPAL VALUE
AMOUNT (C) (NOTE 1)
PURCHASED BANK DEBT - CONTINUED
VIETNAM - 0.6%
Socialist Republic of Vietnam loans restructured
under 1985 agreement (a) DEM 2,500,000 $ 1,032,591
TOTAL PURCHASED BANK DEBT 37,486,309
TOTAL OTHER SECURITIES
(Cost $44,195,311) 37,486,309
REPURCHASE AGREEMENTS - 4.8%
MATURITY
AMOUNT
Investments in repurchase agreements,
(U.S. Treasury obligations), in a
joint trading account at 5.77%,
dated 12/30/94 due 1/3/95 $ 8,738,599 8,733,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $198,484,284) $ 182,591,984
FORWARD FOREIGN CURRENCY CONTRACTS
SETTLEMENT UNREALIZED
DATE VALUE GAIN/(LOSS)
CONTRACTS TO BUY
3,161,550 BRR 1/31/95 $ 3,646,540 $ 146,540
9,893,800 CHF 3/8/95 7,558,289 15,989
TOTAL CONTRACTS TO BUY
(Payable amount $11,042,300) $ 11,204,829 162,529
THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 6.1%
FORWARD FOREIGN CURRENCY CONTRACTS
SETTLEMENT UNREALIZED
DATE VALUE GAIN/(LOSS)
CONTRACTS TO SELL
129,182,376 BEF 1/18/95 $ 4,058,976 $ 17,979
9,893,800 CHF 3/8/95 7,558,289 (45,912)
1,358,009 DEM 1/19/95 876,804 27,917
807,126,500 JPY 3/8/95 8,152,972 (9,433)
187,880,000 ESP 1/18/95 1,424,839 34,196
TOTAL CONTRACTS TO SELL
(Receivable amount $22,096,627) $ 22,071,880 24,747
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 12.1%
$ 187,276
SECURITY TYPE ABBREVIATION
FLIRB - Front Loaded Interest Reduction Bonds
CURRENCY ABBREVIATIONS
ARP - Argentine peso
BEF - Belgian franc
BRR - Brazilian real
FRF - French franc
DEM - German deutsche mark
JPY - Japanese yen
ESP - Spanish peseta
CHF - Swiss franc
LEGEND
(p) Non-income producing
(q) Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
(r) Principal amount is stated in United States dollars unless otherwise
noted.
(s) Principal amount in thousands.
(t) 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 $ 387,500
(u) 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 $19,122,193 or 10.7% of net
assets.
(v) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(w) Principal amount shown is original face amount and does not reflect the
inflation adjustments.
(x) Some 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.
(y) Security purchased on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
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 8.9% BB 10.8%
B 15.1% B 4.5%
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 66.9% including long-term debt
categorized as other securities. FMR has determined that unrated debt
securities that are lower quality account for 44.8% of the total value of
investment in securities.
INDUSTRY DIVERSIFICATION
As a Percentage of Total Value of Investment in Securities (Unaudited)
Basic Industries 6.0%
Construction & Real Estate 1.0
Durables 2.8
Finance 2.9
Government Obligations 79.3
Holding Companies 0.6
Media & Leisure 1.1
Nondurables 0.2
Repurchase Agreements 4.8
Retail & Wholesale 0.9
Utilities 0.4
100.0%
INCOME TAX INFORMATION
At December 31, 1994, the aggregate cost of investment securities for
income tax purposes was $200,756,396. Net unrealized depreciation
aggregated $18,164,412, of which $8,573,570 related to appreciated
investment securities and $26,737,982 related to depreciated investment
securities.
At December 31, 1994, the fund had a capital loss carryforward of
approximately $6,130,000 which will expire on December 31, 2002.
The fund has elected to defer to its fiscal year ending December 31, 1995
$6,362,000 of losses recognized during the period November 1, 1994 to
December 31, 1994.
For the period, interest and dividends from foreign countries were
$14,331,989 or $.82 per share. Taxes accrued or paid to foreign countries
were $316,983 or $.02 per share.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
DECEMBER 31, 1994

ASSETS

Investment in securities, at value (including repurchase $ 182,591,984
agreements of $8,733,000) (cost $198,484,284) - See
accompanying schedule

Cash 16,890

Receivable for investments sold 27,590,039
Regular delivery

Delayed delivery 14,074,375

Unrealized appreciation on foreign currency contracts 242,621

Interest receivable 3,080,636

Other receivables 190,378

TOTAL ASSETS 227,786,923

LIABILITIES

Payable for investments purchased $ 22,905,046
Regular delivery

Delayed delivery 24,148,057

Unrealized depreciation on foreign currency contracts 55,345

Payable for fund shares redeemed 1,099,972

Dividends payable 75,784

Accrued management fee 132,879

Other payables and accrued expenses 256,045

TOTAL LIABILITIES 48,673,128

NET ASSETS $ 179,113,795

Net Assets consist of:

Paid in capital $ 209,086,775

Distributions in excess of net investment income (323,538)

Accumulated undistributed net realized gain (loss) on (13,884,244)
investments and foreign currency transactions

Net unrealized appreciation (depreciation) on (15,765,198)
investments and assets and liabilities in foreign
currencies

NET ASSETS, for 17,574,256 shares outstanding $ 179,113,795

NET ASSET VALUE, offering price and redemption price per $10.19
share ($179,113,795 (divided by) 17,574,256 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED DECEMBER 31, 1994

INVESTMENT INCOME $ 296,994
Dividends

Interest 16,992,242

17,289,236

Less foreign taxes withheld (316,983)

TOTAL INCOME 16,972,253

EXPENSES

Management fee $ 1,686,850

Transfer agent fees 1,115,908

Accounting fees and expenses 143,864

Non-interested trustees' compensation 1,277

Custodian fees and expenses 230,417

Registration fees 76,556

Audit 86,337

Legal 35,500

Interest 184,221

Miscellaneous 4,070

Total expenses before reductions 3,565,000

Expense reductions (529,663) 3,035,337

NET INVESTMENT INCOME 13,936,916

REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:

Investment securities (10,318,934)

Foreign currency transactions (4,965,276)

Written options 325,498 (14,958,712)

Change in net unrealized appreciation (depreciation) on:

Investment securities (36,939,390)

Written options (54,250)

Assets and liabilities in foreign currencies (560) (36,994,200)

NET GAIN (LOSS) (51,952,912)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM $ (38,015,996)
OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED MAY 4,1993
DECEMBER 31, (COMMENCEMENT
1994 OF OPERATIONS) TO
DECEMBER 31,
1993

INCREASE (DECREASE) IN NET ASSETS

Operations $ 13,936,916 $ 4,780,694
Net investment income

Net realized gain (loss) (14,958,712) 11,898,915

Change in net unrealized appreciation (depreciation) (36,994,200) 21,229,002

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (38,015,996) 37,908,611
FROM OPERATIONS

Distributions to shareholders: (11,818,195) (4,780,694)
From net investment income

In excess of net investment income (1,279,408) (740,943)

From net realized gain (4,749,230) (3,248,513)

TOTAL DISTRIBUTIONS (17,846,833) (8,770,150)

Share transactions 898,437,029 484,045,051
Net proceeds from sales of shares

Reinvestment of distributions 15,556,080 7,873,635

Cost of shares redeemed (965,609,596) (234,464,036)

Net increase (decrease) in net assets resulting from (51,616,487) 257,454,650
share transactions

TOTAL INCREASE (DECREASE) IN NET ASSETS (107,479,316) 286,593,111

NET ASSETS

Beginning of period 286,593,111 -

End of period (including distributions in excess of net $ 179,113,795 $ 286,593,111
investment income of $323,538 and $119,792,
respectively)

OTHER INFORMATION
Shares

Sold 81,572,692 40,919,744

Issued in reinvestment of distributions 1,354,349 631,354

Redeemed (87,272,908) (19,630,975)

Net increase (decrease) (4,345,867) 21,920,123

</TABLE>

FINANCIAL HIGHLIGHTS

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

1994 1993

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 13.070 $ 10.000

Income from Investment Operations .573 D .486 G
Net investment income

Net realized and unrealized gain (loss) (2.687) 3.302

Total from investment operations (2.114) 3.788

Less Distributions (.529) E (.486)
From net investment income

In excess of net investment income (.057) (.062)

From net realized gain on investments (.180) E (.170)

Total distributions (.766) (.718)

Net asset value, end of period $ 10.190 $ 13.070

TOTAL RETURN B, C (16.55)% 38.84%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 179,114 $ 286,593

Ratio of expenses to average net assets 1.28% F 1.24% A

Ratio of expenses to average net assets before expense 1.50% F 1.68% A
reductions

Ratio of net investment income to average net assets 5.87% 6.29% A

Portfolio turnover rate 409% 324% A

</TABLE>

A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
SEE NOTE 7 OF NOTES TO FINANCIAL STATEMENTS.
D INCLUDES INTEREST EXPENSE OF $.008 PER SHARE.
E THE AMOUNTS SHOWN REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO
TAX DIFFERENCES.
SEE NOTE 1 OF NOTES TO FINANCIAL STATEMENTS.
F INCLUDES INTEREST EXPENSE OF .08% OF AVERAGE NET ASSETS.
G NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
NOTES TO FINANCIAL STATEMENTS
For the period ended December 31, 1994

14. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity New Markets Income Fund (the fund) is a fund of Fidelity
Investment Trust (the trust) and is authorized to issue an unlimited number
of shares. The trust is registered under the Investment Company Act of
1940, as amended (the 1940 Act), as an open-end management investment
company organized as a Massachusetts business trust. The following
summarizes the significant accounting policies of the fund:
SECURITY VALUATION. Securities for which quotations are readily available
are valued at the last sale price, or if no sale price, at the closing bid
price in the principal market in which such securities are normally traded.
Securities (including restricted securities) for which quotations are not
readily available are valued primarily using dealer-supplied valuations or
at their fair value as determined in good faith under consistently applied
procedures under the general supervision of the Board of Trustees.
Short-term securities maturing within sixty days of their purchase date 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, 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 investment securities.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to U.S. federal
income taxes to the extent that it distributes all of its taxable income
for its fiscal year. 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."
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
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
INVESTMENT INCOME - CONTINUED
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, futures and options and
excise tax regulations. 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 and may
affect net investment income per share. Distributions in excess of 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.
REDEMPTION FEES. Effective February 13, 1995, shares held in the fund less
than 180 days are subject to a redemption fee equal to 1.00% of the
proceeds of the redeemed shares. A portion of the fee is accounted for as a
reduction of transfer agent expenses. This portion of the redemption fee is
used to offset the transaction costs and other expenses that short-term
trading imposes on the fund and its shareholders. The remainder of the
redemption fee is accounted for as an addition to paid in capital.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
15. OPERATING POLICIES.
FORWARD FOREIGN CURRENCY
CONTRACTS. The fund may use foreign currency contracts to facilitate
transactions in foreign securities and to manage the fund's currency
exposure. Contracts to buy generally are used to acquire exposure to
foreign currencies, while contracts to sell are used to hedge the fund's
investments against currency fluctuations. Also, a contract to buy or sell
can offset a previous contract. These contracts involve market risk in
excess of the unrealized gain or loss reflected in the fund's Statement of
Assets and Liabilities. The U.S. dollar value of the currencies the fund
has committed to buy or sell is shown in the schedule of investments under
the caption "Forward Foreign Currency Contracts." This amount represents
the aggregate exposure to each currency the fund has acquired or hedged
through currency contracts at period end. Losses may arise from changes in
the value
2. OPERATING POLICIES - CONTINUED
FORWARD FOREIGN CURRENCY
CONTRACTS - CONTINUED
of the foreign currency or if the counterparties do not perform under the
contracts' terms. The U.S. dollar value of forward foreign currency
contracts is determined using forward currency exchange rates supplied by a
quotation service. 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. Contracts that have been offset
with different counterparties are reflected as both a contract to buy and a
contract to sell in the schedule of investments under the caption "Forward
Foreign Currency Contracts."
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
affiliated entities of FMR, may transfer uninvested cash balances into one
or more joint trading accounts. These balances are invested in one or more
repurchase agreements that mature in 60 days or less from the date of
purchase, and 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.
DELAYED DELIVERY TRANSACTIONS.
The fund may purchase or sell securities on a when-issued or forward
commitment basis. Payment and delivery may take place a month or more after
the date of the transaction. The price of the underlying securities and the
date when the securities will be delivered and paid for are fixed at the
time the transaction is negotiated. The fund identifies securities as
segregated in its custodial records with a value at least equal to the
amount of the purchase commitment.
FUTURES CONTRACTS AND OPTIONS. The fund may use futures and options
contracts to manage its exposure to the bond market and to fluctuations in
interest rates and currency values. Buying futures, writing puts, and
buying calls tend to increase the fund's exposure to the underlying
instrument. Selling futures, buying puts, and writing calls tend to
decrease the fund's exposure to the underlying instrument, or hedge other
fund investments. Losses may arise from changes in the value of the
underlying instruments, if there is an illiquid secondary market for the
contracts, or if the counterparties do not perform under the contracts'
terms.

2. OPERATING POLICIES - CONTINUED
FUTURE CONTRACTS AND OPTIONS - CONTINUED
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Exchange-traded
options are valued using the last sale price or, in the absence of a sale,
the last offering price. Options traded over-the-counter are valued using
dealer-supplied valuations.
RESTRICTED SECURITIES. The fund is permitted to invest in 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 $360,375 or 0.2% of net assets.
LOANS AND OTHER DIRECT DEBT INSTRUMENTS. The fund is permitted to invest in
loans and loan participations, trade claims or other receivables. These
investments may include standby financing commitments that obligate the
fund to supply additional cash to the borrower on demand. Loan
participations involve a risk of insolvency of the lending bank or other
financial intermediary. At the end of the period, these investments
amounted to $37,486,309 or 20.9% of net assets.
16. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $854,735,139 and $913,530,408, 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)
Contracts closed - -
Outstanding at December 31, 1994 - $ -
17. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly
fee that is calculated on the basis of a group fee rate plus a fixed
individual fund fee rate applied to the average net assets of the fund. The
group fee rate is the weighted average of a series of rates and is based on
the monthly average net assets of all the mutual funds advised by FMR. The
rates ranged from .1325% to .3700% for the period January 1, 1994 to July
31, 1994 and .1200% to .3700% for the period August 1, 1994 to December 31,
1994. In the event that these rates were lower than the contractual rates
in effect during those periods, FMR voluntarily implemented the above
rates, as they resulted in the same or a lower
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
MANAGEMENT FEE - CONTINUED
management fee. The annual individual fund fee rate is .55%. For the
period, the management fee was equivalent to an annual rate of .71% of
average net assets.
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.) and Fidelity Investments
Japan Limited (FIJ). 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. and FIJ 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. No payments were made to third parties under
the Plan during 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.
BROKERAGE COMMISSIONS. The fund placed a portion of its portfolio
transactions with brokerage firms which are affiliates of FMR. The
commissions paid to these affiliated firms were $2,397 for the period.
18. 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 $20,479,947,
respectively. The weighted average interest rate was 4.19%. Interest
expense includes $90,575 paid under the interfund lending program.
19. 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
6. BANK BORROWINGS - CONTINUED
time. The maximum loan and the average daily loan balances during the
periods for which loans were outstanding amounted to $39,000,000 and
$11,659,323, respectively. The weighted average interest rate was 4.67%.
Interest expense includes $93,646 paid under the bank borrowing program.
20. 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 $529,663.
21. 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.
22. LITIGATION.
The fund is engaged in litigation against the obligor on the inflation
adjusted debt of Siderurgica Brasileiras SA, contesting the calculation of
the principal adjustment. The probability of success cannot be predicted
and the amount of recovery cannot be estimated. Any recovery from this
litigation would inure to the benefit of the fund.
REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees of Fidelity Investment Trust and the Shareholders of
Fidelity New Markets Income Fund:
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments (except for Moody's and Standard &
Poor's ratings), and the related statements of operations and of changes in
net assets and the financial highlights present fairly, in all material
respects, the financial position of Fidelity New Markets Income Fund (a
fund of Fidelity Investment Trust) at December 31, 1994, the results of its
operations for the year then ended, the changes in its net assets and the
financial highlights for the periods indicated in conformity with generally
accepted accounting principles. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Fidelity New Markets Income Fund's management; our
responsibility is to express an opinion on these financial statements based
on our audits. We conducted our audits of these financial statements in
accordance with generally accepted auditing standards which require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which
included confirmation of securities owned at December 31, 1994 by
correspondence with the custodian and brokers and the application of
alternative auditing procedures where confirmations from brokers were not
received, provide a reasonable basis for the opinion expressed above.
/s/PRICE WATERHOUSE LLP
Boston, Massachusetts
February 13, 1995
TO VISIT FIDELITY

For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 East Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19100 Von Karman Avenue
Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
811 Wilshire Boulevard
Los Angeles, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
455 Market Street
San Francisco, CA
1400 Civic Drive
Walnut Creek, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
185 Asylum Street
Hartford, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
DELAWARE
222 Delaware Avenue
Wilmington, DE
FLORIDA
4400 N. Federal Highway
Boca Raton, FL
90 Alhambra Plaza
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
4001 Tamiami Trail, North
Naples, FL
1907 West State Road 434
Orlando, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
2000 66th Street, North
St. Petersburg, FL
GEORGIA
3525 Piedmont Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
HAWAII
700 Bishop Street
Honolulu, HI
ILLINOIS
215 East Erie Street
Chicago, IL
One North Franklin
Chicago, IL
540 Lake Cook Road
Deerfield, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
LOUISIANA
201 St. Charles Avenue
New Orleans, LA
MAINE
3 Canal Plaza
Portland, ME
MARYLAND
1 West Pennsylvania Ave.
Towson, MD
7401 Wisconsin Avenue
Bethesda, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
101 Cambridge Street
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
26955 Northwestern Hwy.
Southfield, MI
MINNESOTA
38 South Sixth Street
Minneapolis, MN
MISSOURI
700 West 47th Street
Kansas City, MO
8885 Ladue Road
Ladue, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
60B South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
505 Millburn Avenue
Short Hills, NJ
NEW YORK
1050 Franklin Avenue
Garden City, NY
999 Walt Whitman Road
Melville, L.I., NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
2200 West Main Street
Durham, NC
4611 Sharon Road
Charlotte, NC
OHIO
600 Vine Street
Cincinnati, OH
1903 East Ninth Street
Cleveland, OH
28699 Chagrin Boulevard
Woodmere Village, OH
OREGON
121 S.W. Morrison Street
Portland, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
5100 Poplar Avenue
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
7001 Preston Road
Dallas, TX
1155 Dairy Ashford
Houston, TX
1010 Lamar Street
Houston, TX
2701 Drexel Drive
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
UTAH
215 South State Street
Salt Lake City, UT
VERMONT
199 Main Street
Burlington, VT
VIRGINIA
8180 Greensboro Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
1001 Fourth Avenue
Seattle, WA
WASHINGTON, DC
1775 K Street, N.W.
Washington, DC
WISCONSIN
222 East Wisconsin Avenue
Milwaukee, WI

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
Arthur S. Loring, Secretary
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
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
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)
(registered trademark)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE