FIDELITY INVESTMENT TRUST, N-30D, 1995-12-22

FIDELITY INVESTMENT TRUST
N-30D, 1995-12-22

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(2_FIDELITY_LOGOS)FIDELITY'S
TARGETED INTERNATIONAL EQUITY
FUNDS
FIDELITY CANADA FUND
FIDELITY EMERGING MARKETS FUND
FIDELITY EUROPE FUND
FIDELITY EUROPE CAPITAL APPRECIATION FUND
FIDELITY FRANCE FUND*
FIDELITY GERMANY FUND*
FIDELITY HONG KONG AND CHINA FUND*
FIDELITY JAPAN FUND
FIDELITY JAPAN SMALL COMPANIES FUND*
FIDELITY LATIN AMERICA FUND
FIDELITY NORDIC FUND*
FIDELITY PACIFIC BASIN FUND
FIDELITY SOUTHEAST ASIA FUND
FIDELITY UNITED KINGDOM FUND*
ANNUAL REPORT
FOR THE YEAR ENDING
OCTOBER 31, 1995
AND
PROSPECTUS
DATED DECEMBER 30, 1995
* Prospectus only
CONTENTS

<TABLE>
<CAPTION>
<S> <C> <C>
MARKET RECAP A-4 A REVIEW OF WHAT HAPPENED IN WORLD
MARKETS DURING THE LAST YEAR

CANADA FUND PERFORMANCE
A-6 FUND TALK: THE MANAGER'S OVERVIEW
INVESTMENT CHANGES
A-9 INVESTMENTS
A-12 FINANCIAL STATEMENTS

EMERGING MARKETS FUND PERFORMANCE
A-15 FUND TALK: THE MANAGER'S OVERVIEW
INVESTMENT CHANGES
A-18 INVESTMENTS
A-24 FINANCIAL STATEMENTS

EUROPE FUND PERFORMANCE
A-27 FUND TALK: THE MANAGER'S OVERVIEW
INVESTMENT CHANGES
A-30 INVESTMENTS
A-33 FINANCIAL STATEMENTS

EUROPE CAPITAL APPRECIATION FUND PERFORMANCE
A-36 FUND TALK: THE MANAGER'S OVERVIEW
INVESTMENT CHANGES
A-39 INVESTMENTS
A-41 FINANCIAL STATEMENTS

JAPAN FUND PERFORMANCE
A-44 FUND TALK: THE MANAGER'S OVERVIEW
INVESTMENT CHANGES
A-47 INVESTMENTS
A-50 FINANCIAL STATEMENTS

LATIN AMERICA FUND A-52 PERFORMANCE
A-53 FUND TALK: THE MANAGER'S OVERVIEW
A-55 INVESTMENT CHANGES
A-56 INVESTMENTS
A-59 FINANCIAL STATEMENTS

PACIFIC BASIN FUND PERFORMANCE
A-62 FUND TALK: THE MANAGER'S OVERVIEW
INVESTMENT CHANGES
A-65 INVESTMENTS
A-70 FINANCIAL STATEMENTS

SOUTHEAST ASIA FUND PERFORMANCE
A-73 FUND TALK: THE MANAGER'S OVERVIEW
INVESTMENT CHANGES
A-76 INVESTMENTS
A-79 FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS A-81 NOTES TO THE FINANCIAL STATEMENTS

REPORTS OF INDEPENDENT ACCOUNTANTS A-85 THE AUDITORS' OPINION / COOPERS & LYBRAND L.L.P.
A-86 THE AUDITORS' OPINION / PRICE WATERHOUSE LLP

FIDELITY'S TARGETED INTERNATIONAL EQUITY
FUNDS PROSPECTUS P-1

</TABLE>

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL INFORMATION OF THE SHAREHOLDERS OF THE FUNDS. THIS REPORT IS
NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE FUNDS
UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY,
ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, FEDERAL
RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISKS,
INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
NEITHER THE FUNDS 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.
MARKET RECAP

Overseas stock markets have not turned in the same strong performance that
the U.S. market has in 1995. Slow growth, a string of negative events in
Japan, and Mexico's currency crisis in late 1994 helped spark a flight of
capital to the U.S., in spite of positive news regarding interest rate
declines in many markets. For the 12 months ended October 31, 1995, the
Morgan Stanley EAFE Index - which measures stock performance in Europe,
Australia and the Far East - had a total return of -0.37%.
EUROPE: European markets produced fairly strong results. The Morgan Stanley
Europe Index rose 13.21% during the 12 months ended October 31. The
economic recovery in many European economies stalled in 1995, despite
interest rate declines. Strong dollar-based returns in Switzerland were
bolstered by the strength of the Swiss franc, as well as the solid
performance of insurance companies and consumer nondurable stocks, such as
pharmaceuticals. Strong performances by the Finnish and Swedish markets
also were marked by a lack of breadth, as large-capitalization stocks that
make up significant portions of local indexes posted strong returns. Italy
and Austria produced negative returns; Norway fared a bit better; Belgium,
Denmark, Germany, Ireland, the Netherlands, Spain and the United Kingdom
posted solid, double-digit returns.
JAPAN AND THE FAR EAST: Japan's stock market continued to struggle in 1995
as the country's economy stalled. According to Morgan Stanley Capital
International, Japanese stocks fell 13.1% in U.S. dollars over the 12
months ended October 31. The drop was due to a number of factors that
affected investor sentiment: the Barings debacle, the Kobe earthquake, the
subway nerve gas attack, the strength of the yen versus other currencies, a
lack of consumer confidence, political and banking scandals, and a
weakening economy. A lack of foreign capital exacerbated the issue. The
Morgan Stanley Far East ex-Japan Free Index - a measure of Far East markets
excluding Japan - fell 7.54% during the period, in spite of strong returns
in Hong Kong. A lack of investor interest, slowing economies and fears of
interest rate increases spurred weakness in the Far East.
EMERGING MARKETS: Emerging markets struggled in 1995, hurt by the flight
of capital to the U.S. The Morgan Stanley Emerging Markets Free Index had a
total return of -19.43% for the 12 months ended October 31. Rising interest
rates in late 1994 and
early 1995, as well as Mexico's peso devaluation in December 1994,
contributed significantly to this exodus. While interest rates have
declined in the U.S., they have not in Southeast Asia, adding to mounting
trade deficits and making it more expensive for companies to borrow. Except
for Peru and Venezuela, returns across Latin America were negative, even
though Brazil and Chile took steps to alleviate inflation, increase
savings, raise foreign exchange reserves and improve economic growth. The
top performing markets through October 1995 were Turkey, Greece and South
Africa. Other emerging markets making positive gains in 1995 included
Israel and Jordan.
U.S. AND CANADA: Strong corporate earnings and a favorable interest rate
environment helped the U.S. stock market post robust returns during the
period. The Standard & Poor's Composite Index of 500 Stocks was up 26.44% -
well above its historical annual average of roughly 12%. With inflation
posing little threat, interest rates fell during the first half of 1995.
Technology companies - whose goods and services benefited from both
corporate and consumer demand - posted the strongest earnings growth and
stock price gains. Canadian stocks did not perform as well over the past 12
months. Stocks included in the Toronto Stock Exchange 300 Index returned
7.07% for the period.
BONDS: Many global bond markets turned in strong performances during the 12
months ended October 31, 1995, sparked by declines in interest rates. In
the U.S., yields fell - and prices rose - on most fixed-income investments.
Indications of a slowing U.S. economy and a relative absence of inflation
pressures helped to push interest rates down. In an effort to thwart the
possibility of a recession, the Federal Reserve Board lowered U.S.
short-term interest rates in July, after raising them seven successive
times in 1994 and early 1995. Slowing economies in developed countries also
helped push interest rates down. For the 12 months ended October 31, 1995,
the Salomon Brothers Non-U.S. World Government Bond Index - which tracks
the performance of government bonds in 13 developed countries excluding the
U.S. - had a total return of 15.19%. That nearly matched the Lehman
Brothers Government Bond Index - a broad measure of taxable bonds in the
U.S. market - which returned 15.38%. For the same period, the J.P. Morgan
Emerging Markets Bond Index had a total return of 8.01%.

S&P 500 EAFE
* YEAR TO DATE THROUGH OCTOBER 31, 1995.
Row: 1, Col: 1, Value: 22.38
Row: 1, Col: 2, Value: 23.69
Row: 2, Col: 1, Value: 6.1
Row: 2, Col: 2, Value: 7.38
Row: 3, Col: 1, Value: 31.57
Row: 3, Col: 2, Value: 56.16
Row: 4, Col: 1, Value: 18.56
Row: 4, Col: 2, Value: 69.44000000000001
Row: 5, Col: 1, Value: 5.1
Row: 5, Col: 2, Value: 24.63
Row: 6, Col: 1, Value: 16.61
Row: 6, Col: 2, Value: 28.27
Row: 7, Col: 1, Value: 31.69
Row: 7, Col: 2, Value: 10.53
Row: 8, Col: 1, Value: -3.1
Row: 8, Col: 2, Value: -23.45
Row: 9, Col: 1, Value: 30.47
Row: 9, Col: 2, Value: 12.13
Row: 10, Col: 1, Value: 7.619999999999999
Row: 10, Col: 2, Value: -12.17
Row: 11, Col: 1, Value: 10.08
Row: 11, Col: 2, Value: 32.56
Row: 12, Col: 1, Value: -2.56
Row: 12, Col: 2, Value: 7.89
Row: 13, Col: 1, Value: 29.3
Row: 13, Col: 2, Value: 4.01
%
CANADA
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
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (income) and capital gains (the profits the
fund earns when it sells securities that have grown in value). The fund has
a 3% sales charge.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED PAST 1 PAST 5 LIFE OF
OCTOBER 31, 1995 YEAR YEARS FUND

CANADA 2.22% 47.44% 113.81%

CANADA (INCL. 3% SALES CHARGE) -0.85% 43.02% 107.40%

TSE 300 (Toronto Stock
Exchange 300) Index 7.07% 45.64% 90.40%

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 November 17, 1987. For example, if you invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment would
be $1,050. You can compare the fund's returns to the performance of the
Toronto Stock Exchange (TSE) 300 index - a broad measure of the performance
of the Canadian stock market. This index includes reinvested dividends and
capital gains, if any, and excludes the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED PAST 1 PAST 5 LIFE OF
OCTOBER 31, 1995 YEAR YEARS FUND

CANADA 2.22% 8.07% 10.01%

CANADA (INCL. 3% SALES CHARGE) -0.85% 7.42% 9.59%

TSE 300 (Toronto Stock
Exchange 300) Index 7.07% 7.81% 8.42%

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
Canada (309Toronto Stoc
11/17/87 9700.00 10000.00
11/30/87 9767.90 10153.53
12/31/87 10446.90 10895.36
01/31/88 10340.20 10759.36
02/29/88 11048.30 11447.90
03/31/88 11737.00 12111.13
04/30/88 12008.60 12268.35
05/31/88 11436.30 11947.11
06/30/88 12319.00 12906.84
07/31/88 12144.40 12762.32
08/31/88 11562.40 12139.94
09/30/88 11804.90 12401.15
10/31/88 12357.80 12753.48
11/30/88 12212.30 12830.11
12/31/88 12480.81 13188.28
01/31/89 13422.57 14213.27
02/28/89 13045.87 13881.50
03/31/89 13263.96 14027.96
04/30/89 13531.62 14346.43
05/31/89 13987.63 14383.31
06/30/89 14661.73 14845.75
07/31/89 15553.93 15890.01
08/31/89 15633.23 16147.42
09/30/89 15534.10 15922.92
10/31/89 15316.01 15949.98
11/30/89 15405.23 16197.04
12/31/89 15849.10 16474.68
01/31/90 14563.76 15023.40
02/28/90 14646.68 14920.74
03/31/90 14895.46 15084.12
04/30/90 14180.23 13930.65
05/31/90 15113.14 14884.87
06/30/90 15465.57 14908.13
07/31/90 15589.96 15161.03
08/31/90 14688.15 14235.18
09/30/90 14449.74 13514.44
10/31/90 14066.21 13073.85
11/30/90 14522.30 13439.96
12/31/90 14978.60 14019.82
01/31/91 15045.02 14077.13
02/28/91 16428.85 15100.37
03/31/91 17148.44 15213.01
04/30/91 17281.29 15194.26
05/31/91 18045.17 15713.88
06/30/91 18067.31 15474.06
07/31/91 18011.95 15696.55
08/31/91 17856.97 15774.78
09/30/91 17259.15 15380.42
10/31/91 18023.03 16117.15
11/30/91 17347.72 15691.20
12/31/91 17627.42 15764.11
01/31/92 17945.14 15903.64
02/29/92 18051.04 15778.39
03/31/92 17545.05 15003.00
04/30/92 17333.24 14750.06
05/31/92 17486.21 14781.51
06/30/92 17392.07 14899.21
07/31/92 17839.23 15353.94
08/31/92 17568.58 15073.09
09/30/92 16815.48 14065.44
10/31/92 16744.87 14331.45
11/30/92 16697.80 13610.56
12/31/92 17121.47 14127.27
01/31/93 17027.21 13986.24
02/28/93 18087.72 14844.82
03/31/93 19077.54 15446.95
04/30/93 19572.45 16106.36
05/31/93 19843.47 16559.37
06/30/93 20856.85 16822.63
07/31/93 20102.71 16806.78
08/31/93 20609.40 17107.05
09/30/93 19596.02 16373.43
10/31/93 20998.26 17654.85
11/30/93 20515.13 17182.05
12/31/93 21482.47 18005.65
01/31/94 22427.27 18880.15
02/28/94 21470.66 18093.83
03/31/94 20679.39 17332.87
04/30/94 20525.86 17106.99
05/31/94 20620.34 17383.62
06/30/94 19486.57 16219.73
07/31/94 19864.49 16810.87
08/31/94 20608.53 17737.69
09/30/94 20714.82 18158.66
10/31/94 20289.65 17783.29
11/30/94 18813.40 16716.54
12/31/94 18907.95 16946.85
01/31/95 17584.40 16109.65
02/28/95 18305.26 16775.46
03/31/95 19451.56 17486.08
04/30/95 20042.43 17912.15
05/31/95 20668.76 18470.49
06/30/95 20952.38 18822.99
07/31/95 21673.24 19330.28
08/31/95 21401.44 19231.88
09/30/95 21708.69 19371.75
10/31/95 20739.66 19040.25

Let's say you invested $10,000 in Fidelity Canada Fund on November 17,
1987, when the fund started, and paid the 3% sales charge. By October 31,
1995, the value of your investment would have grown to $20,740 - a 107.40%
increase on your initial investment. That compares to $10,000 invested in
the Toronto Stock Exchange (TSE) 300 index, which would have grown to
$19,040 over the same period - a 90.40% increase.

UNDERSTANDING PERFORMANCE
Many markets around the globe offer the
potential for significant growth over time;
however, investing in foreign markets means
assuming greater risks than investing in the
United States. Factors like changes in a
country's financial markets, its local political
and economic climate, and the fluctuating
value of its currency create these risks. For
these reasons an international fund's
performance may be more volatile than a fund
that invests exclusively in the United States.
Past performance is no guarantee of future
results and you may have a gain or loss when
you sell your shares.
(checkmark)
CANADA
FUND TALK: THE MANAGER'S OVERVIEW

An interview with George Domolky, Portfolio Manager of Fidelity Canada Fund
Q. HOW DID THE FUND PERFORM, GEORGE?
A. For the 12 months ended October 31, 1995, the fund had a 2.22% return.
That lagged the Toronto Stock Exchange (TSE) 300 index's 7.07% return.
Q. WHAT MADE THE PAST YEAR SO TOUGH ON CANADIAN STOCKS?
A. Throughout the past year, the Canadian equity markets experienced a fair
amount of turbulence as the threat of a Quebec separation cast a pall over
the country's investment picture. This, coupled with a slowdown in the
economic growth rate of the United States - Canada's largest trading
partner - and a weak Canadian dollar, caused further uncertainty. The fact
that North American inflation rates were at historical lows, hovering
around 2 percent, was also a negative factor. That's because natural
resources, which represent the majority of the Canadian market, tend to be
better when inflation picks up and lag when inflation stays low.
Q. WHAT CAUSED THE FUND TO LAG THE RETURNS OF THE BROAD MARKET?
A. The fund was heavily weighted in energy, gold, and base metals, all of
which suffered from the above and other factors.
Q. LET'S TAKE THESE INDUSTRIES ONE AT A TIME, STARTING WITH ENERGY.
A. Generally speaking, energy prices have been languishing for more than a
year. An abundant supply and an unusually warm 1994-95 winter depressed
prices of both natural gas and oil. While the price of natural gas picked
up a bit during a brief period in the spring, it more or less decreased
during the first three quarters of 1995. Excess supply resulting from the
warmer-than-normal winter led to a build-up of natural gas inventories. At
the same time, drilling was strong. New supply and excess inventory kept
natural gas prices low. Meanwhile, oil suffered from the fact that
worldwide economic growth began to moderate. Looking ahead, the supply and
demand fundamentals could turn more favorable for both fuels. A normal
winter could be enough to bring down supplies and send natural gas prices
higher. At the same time, oil prices seem to be firming as OPEC nations
exercise restraint in maintaining their production quotas. For those
reasons, the fund is currently heavily weighted in the energy sector.
Q. LOOKING AT GOLD, HOW DID THIS SECTOR FARE?
A. Throughout the year, gold had a tough time breaking through the
$400-an-ounce barrier, trading in a narrow range between $365 and $400 per
ounce. Gold was unable to break out of that range mainly because of central
bank selling and producer forward selling whenever the cash price
approached $400 an ounce. Historically, the fortunes of gold have been
closely tied to fears of inflation; when inflation is on the rise, so is
the price of gold. That's because gold acts mainly as a hedge against
inflation. But going forward, I think that the price of gold will be
determined more by supply and demand fundamentals. The eventual disparity
between supply and demand in favor of demand could boost gold past the $400
mark. That's why I continued to favor gold stocks like Barrick Gold.
Recently it had impressive exploration successes in Nevada.
Q. WHAT ABOUT THE BASE METAL STOCKS?
A. The fund continues to have a relatively large weighting in these stocks,
with large holdings in Alcan Aluminum and Noranda. Base metals - aluminum,
copper, nickel, and zinc - started out the year well when world economies
were in an expansionary phase and the demand for these metals increased as
inventories were depleted. As world economic growth moved toward a more
moderate pace, base metal prices, and base metal stocks, moderated as well.
I anticipate that the demand for base metals - especially nickel and
aluminum - could increase if the world economies pick up again. Since
supply for these metals is relatively tight, that should be a positive for
the sector.
Q. WHICH STOCKS WERE STRONG CONTRIBUTORS TO THE FUND'S PERFORMANCE?
A. Canadian Pacific (CP) Limited, proved to be a good turnaround story and
one of the fund's leading performers during the past six months. In my
view, the privatization of Canadian national railroads should continue to
help the profitability of the country's railroad industry in general. Two
of Canada's leading mutual fund companies, Trimark Financial Group and
MacKenzie Financial Corp., were up significantly during the past six
months. In my opinion, the Canadian mutual fund industry is just at the
initial stages of a long growth period.
Q. WHERE ARE YOU FINDING OPPORTUNITIES?
A. Technology companies like Rand Technology is one recent addition to the
fund. I believe this company is attractive because it offers relatively
high rates of earnings growth and solid prospects.
Q. WHAT'S YOUR OUTLOOK FOR THE CANADIAN STOCK MARKET?
A. The threat that Quebec would separate from Canada has been an
overwhelmingly negative backdrop for the country's equity markets. Now that
the Quebec secession referendum is behind us, at least for the time being,
investor jitters appear to have subsided. I believe we'll see a more
orderly equity market driven by fundamentals and earnings growth next year.
Many Canadian stocks are undervalued, in my view, relative to similar
markets. That relative value could attract more investors to the country. I
believe that the fund is very well positioned to take advantage of an
eventual pickup in the North American economies, which I anticipate for the
second half of 1996, and a continuing low interest rate environment.

FUND FACTS
GOAL: to increase the value of the fund's
shares by investing mainly in equity securities
of Canadian issuers
START DATE: November 17, 1987
SIZE: as of October 31, 1995, more than
$326 million
MANAGER: George Domolky, since the fund's
inception in 1987; manager, Fidelity Select
Food and Agriculture Portfolio, 1985-1987;
assistant, Fidelity Magellan Fund, 1983-1986;
joined Fidelity in 1981
(checkmark)
GEORGE DOMOLKY'S OUTLOOK FOR CANADIAN ECONOMY:
"Growth in the domestic Canadian economy was
projected to be about 2.3% for 1995, one of the
strongest among the G-7 nations, and a reasonable
GDP growth rate of 2.8% was projected for 1996.
The federal provincial governments have started a
program of balancing budgets and curtailing
entitlements. This should have a positive effect on
interest rates and the Canadian dollar."
(solid bullet) Energy (28.1%), Basic Industries (16.9%) and
Precious Metals (9.2%) were the top three market
sectors represented in the Canada Fund as of
October 31, 1995. They accounted for more than 54.2
of the fund's investments.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER,
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
CANADA
INVESTMENT CHANGES

GEOGRAPHIC DIVERSIFICATION
AS OF OCTOBER 31, 1995

United States 8.5%
Row: 1, Col: 1, Value: 8.1
Row: 1, Col: 2, Value: 91.90000000000001
Canada 91.5%
AS OF APRIL 30, 1995
United States 14.4%
Row: 1, Col: 1, Value: 14.4
Row: 1, Col: 2, Value: 85.59999999999999
Canada 85.6%
ASSET ALLOCATION
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Stocks 96.8 95.9

Bonds 0.9 0.5

Short-term investments 2.3 3.6

TOP TEN STOCKS
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Renaissance Energy Ltd. 6.4 4.6
(Oil & Gas)

Noranda, Inc. 4.6 3.2
(Metals & Mining)

Canadian Pacific Ltd. Ord. 3.9 5.7
(Railroads)

Pancanadian Petroleum Ltd. 3.8 2.2
(Oil & Gas)

Alcan Aluminium Ltd. 3.7 5.5
(Metals & Mining)

BCE Mobile Communications, Inc. 3.5 0.4
(Cellular)

Northstar Energy Corp. 2.9 1.3
(Oil & Gas)

Canadian Natural Resources Ltd. 2.8 2.7
(Oil & Gas)

Torstar Corp. Class B 2.8 2.3
(Publishing)

Seagram Co. Ltd. 2.7 0.0
(Beverages)

TOP TEN MARKET SECTORS
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Energy 28.1 26.1

Basic Industries 16.9 15.7

Precious Metals 9.2 13.7

Finance 8.6 8.8

Transportation 5.5 5.7

Nondurables 5.2 4.9

Industrial Machinery & Equipment 4.2 2.8

Conglomerates 3.8 1.4

Media & Leisure 3.7 4.9

Utilities 3.5 3.0

CANADA
INVESTMENTS OCTOBER 31, 1995

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 96.6%
SHARES VALUE (NOTE 1)
AEROSPACE & DEFENSE - 0.4%
CAE, Inc. 180,000 $ 1,271,848
BASIC INDUSTRIES - 16.9%
CHEMICALS & PLASTICS - 1.8%
Betz Laboratories, Inc. 4,100 165,025
Dupont Canada Inc. Class A, Series 1 56,700 859,251
Engelhard Corp. 34,300 853,213
Intertape Polymer Group, Inc. 100,500 2,933,897
Maax, Inc. (a) 81,200 535,999
5,347,385
IRON & STEEL - 1.3%
Linamar Corp. 218,700 3,415,917
Samuel Manu-Tech, Inc. 50,000 418,371
3,834,288
METALS & MINING - 12.4%
Alcan Aluminium Ltd. 342,106 10,845,867
Bre-X Minerals Ltd. 10,000 342,927
Cominco Ltd. (a) 80,600 1,543,659
Falconbridge Ltd. 196,000 4,318,706
Falconbridge Ltd. first installment receipts (e) 15,400 143,454
Inco Ltd. 174,022 5,986,253
Noranda, Inc. 675,744 13,507,341
36,688,207
PAPER & FOREST PRODUCTS - 1.4%
Merfin Hygenic Products Ltd. 436,200 1,906,043
Riverside Forest Products 124,400 1,688,583
St. Laurent Paperboard, Inc. 38,300 551,925
4,146,551
TOTAL BASIC INDUSTRIES 50,016,431
CONGLOMERATES - 3.8%
Brascan Ltd. Class A 418,000 6,528,821
Suncor, Inc. first Installment receipts (g) 390,000 4,894,942
11,423,763
CONSTRUCTION & REAL ESTATE - 1.1%
REAL ESTATE INVESTMENT TRUSTS - 1.1%
Trizec Ltd. (a) 415,000 3,009,483
Trizec Ltd. Class A (warrants) (a) 100,000 185,943
3,195,426
DURABLES - 1.3%
AUTOS, TIRES, & ACCESSORIES - 1.0%
Magna International, Inc. Class A 70,700 3,076,199
UAP, Inc. Class A 50 581
3,076,780
CONSUMER DURABLES - 0.3%
Unican Security Systems Ltd. Class B 45,000 920,417
TOTAL DURABLES 3,997,197
ENERGY - 28.1%
ENERGY SERVICES - 2.7%
Enserv Corp. (a) 94,700 757,177
Nowsco Well Service Ltd. 547,400 6,514,243
Precision Drilling Class A (a) 53,900 631,406
Veritas Energy Service, Inc. (a) 40,000 193,380
8,096,206
OIL & GAS - 25.4%
Barrett Resources Corp. (a) 84,700 1,969,275
Barrington Petroleum Ltd. (a) 161,500 354,351

SHARES VALUE (NOTE 1)
Blue Range Resource Corp. Class A (a) 46,900 $ 322,666
Blue Range Resource Corp.
Class A (a)(b) 60,000 412,793
Canadian Natural Resources Ltd. (a) 713,600 8,425,732
Canada Occidental Petroleum Ltd. 54,000 1,586,463
Conwest Exploration Ltd. 53,200 934,808
Ensign Resource Service Group Ord. 68,100 240,591
Excel Energy, Inc. (warrants) (a) 25,000 186
Global Natural Resources, Inc. (a) 40,000 400,000
Inverness Petroleum Ltd. (a) 58,400 233,470
Morgan Hydrocarbons, Inc. (a) 347,000 1,032,354
Morrison Petroleums Ltd. 285,800 1,514,559
Newfield Exploration Co. (a) 70,400 2,076,800
Northstar Energy Corp. (a) 1,046,900 8,467,860
Pancanadian Petroleum Ltd. 341,000 11,413,165
Pan East Petroleum Corp., Inc. (a) 200,000 520,640
Paramount Resources Ltd. 331,400 3,142,692
Petro-Canada first installment receipts (a)(f) 74,000 357,754
Pinnacle Resources Ltd. (a) 50,000 548,531
Poco Petroleums Ltd. (a) 190,000 1,218,855
Renaissance Energy Ltd. (a) 856,022 18,861,772
Renaissance Energy Ltd. (a)(b) 15,000 330,513
Richland Petroleum Corp. Class A (a) 10,000 50,205
Rio Alto Exploration Ltd. (a) 715,300 2,101,476
Rio Alto Exploration Ltd. (a)(b) 11,000 32,317
Summit Resources Ltd. 168,300 1,079,649
Talisman Energy, Inc. (a) 85,000 1,533,098
Tarragon Oil & Gas Ltd. (a) 521,500 4,460,580
Tri Link Resources Ltd. Class A (a) 84,900 820,900
Ulster Petroleums Ltd. (a) 256,600 906,545
75,350,600
TOTAL ENERGY 83,446,806
FINANCE - 8.4%
CREDIT & OTHER FINANCE - 3.1%
Power Corporation of Canada 90,000 1,363,890
Trimark Financial Corp. 290,200 7,824,284
9,188,174
SECURITIES INDUSTRY - 5.3%
First Marathon, Inc. Class A (non-vtg.) 176,900 1,809,130
Investors Group, Inc. 450,000 5,731,685
Mackenzie Financial Corp. 652,900 5,705,894
Pioneer Group, Inc. 84,500 2,218,125
Power Financial Corp. 18,100 410,599
15,875,433
TOTAL FINANCE 25,063,607
INDUSTRIAL MACHINERY & EQUIPMENT - 4.2%
ELECTRICAL EQUIPMENT - 0.9%
Leitch Technology (a) 149,800 2,729,713
INDUSTRIAL MACHINERY & EQUIPMENT - 3.3%
ATS Automation 800 11,589
Enerflex Systems Ltd. 15,000 193,845
Exco Technologies Ltd. (a)(d) 977,800 6,636,240
Osmonics, Inc. (a) 47,400 805,800
Trojan Technologies Corp. (a) 290,400 1,619,933
Valmont Industries, Inc. 18,700 458,150
9,725,557
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 12,455,270
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
MEDIA & LEISURE - 3.7%
BROADCASTING - 0.5%
Cogeco, Inc. 65,000 $ 338,416
Shaw Cablesystems Ltd. Class B (b) 193,500 953,468
Videotron Group Ltd. 36,800 273,708
1,565,592
PUBLISHING - 3.2%
Thomson Corp. 93,198 1,256,388
Torstar Corp. Class B 509,000 8,186,779
9,443,167
TOTAL MEDIA & LEISURE 11,008,759
NONDURABLES - 5.2%
AGRICULTURE - 0.0%
DEKALB Genetics Corp. Class B 900 38,475
BEVERAGES - 2.7%
Seagram Co. Ltd. 220,000 7,976,943
FOODS - 2.5%
Corporate Foods Ltd. 45,300 496,969
GoodMark Foods, Inc. 70,300 1,300,550
RalCorp Holdings, Inc. (a) 14,000 322,000
Tootsie Roll Industries, Inc. 82,682 2,986,887
Weston George Ltd. 65,000 2,175,530
7,281,936
TOTAL NONDURABLES 15,297,354
PRECIOUS METALS - 9.1%
Agnico Eagle Mines Ltd. 364,200 4,029,360
Barrick Gold Corp. 272,400 6,331,350
Battle Mountain Gold Co. 37,500 285,938
Euro-Nevada Mining Corp. 105,400 3,488,509
Franco Nevada Mining Corp. 45,600 2,475,865
Greenstone Resources Ltd. (a) 50,000 120,863
Kinross Gold Corp. (a) 457,000 3,399,033
Newmont Mining Corp. 60,000 2,265,000
Pan American Silver Corp. (a) 79,600 525,437
Placer Dome, Inc. 140,000 3,071,774
Prime Resources Group, Inc. (a) 95,300 691,093
Rayrock Yellowknife Resources, Inc. (a) 46,200 343,622
27,027,844
RETAIL & WHOLESALE - 2.1%
GENERAL MERCHANDISE STORES - 0.6%
Hudson's Bay Co. Ord. 51,000 953,049
Sears Canada, Inc. 166,500 835,906
1,788,955
GROCERY STORES - 1.5%
Loblaw Companies Ltd. 91,800 1,920,324
Van Houtte (A.L.) 186,500 2,635,552
4,555,876
TOTAL RETAIL & WHOLESALE 6,344,831
SERVICES - 1.7%
G & K Services, Inc. Class A 97,500 2,169,375
Loewen Group, Inc. 75,000 2,998,327
5,167,702

SHARES VALUE (NOTE 1)
TECHNOLOGY - 1.6%
COMMUNICATIONS EQUIPMENT - 0.1%
Northern Telecom Ltd. 22 $ 792
SR Telecom, Inc. 30,000 331,908
332,700
COMPUTER SERVICES & SOFTWARE - 1.1%
Rand A Technology Corp. (a) 189,000 2,706,025
Simware, Inc. (a) 2,600 24,375
Systems Xcellence, Inc. (warrants)(a) 100,000 410,004
3,140,404
COMPUTERS & OFFICE EQUIPMENT - 0.2%
Beamscope Canada, Inc. (a) 50,000 595,017
ELECTRONIC INSTRUMENTS - 0.2%
Mosaic Technologies, Inc. (a) 30,000 451,841
TOTAL TECHNOLOGY 4,519,962
TRANSPORTATION - 5.5%
RAILROADS - 5.5%
Bombardier, Inc. Class B 380,800 4,637,858
Canadian Pacific Ltd. Ord. 730,100 11,607,205
TOTAL TRANSPORTATION 16,245,063
UTILITIES - 3.5%
CELLULAR - 3.5%
BCE Mobile Communications, Inc. (a) 345,700 10,349,145
GAS - 0.0%
Nova Corp. 451 3,480
TOTAL UTILITIES 10,352,625
TOTAL COMMON STOCKS
(Cost $264,690,714) 286,834,488
PREFERRED STOCKS - 0.2%
CONVERTIBLE PREFERRED STOCKS - 0.0%
PRECIOUS METALS - 0.0%
Battle Mountain Gold Co. $3.25 2,000 95,500
NONCONVERTIBLE PREFERRED STOCKS - 0.2%
FINANCE - 0.2%
SECURITIES INDUSTRY - 0.2%
A G F Management Ltd. Class A 41,400 473,429
TOTAL PREFERRED STOCKS
(Cost $584,121) 568,929
CONVERTIBLE BONDS - 0.9%
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (C)
DURABLES - 0.8%
AUTOS, TIRES, & ACCESSORIES - 0.8%
Magna International, Inc.
7 1/4%, 7/5/05 Baa3 CAD 2,750,000 2,301,041
CONVERTIBLE BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (C)
PRECIOUS METALS - 0.1%
Agnico Eagle Mines Ltd. yankee
3 1/2%, 1/27/04 B1 $ 220,000 $ 167,750
TOTAL CONVERTIBLE BONDS
(Cost $2,298,869) 2,468,791
REPURCHASE AGREEMENTS - 2.3%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a
joint trading account at 5.88%,
dated 10/31/95 due 11/1/95 $ 6,964,137 6,963,000
TOTAL INVESTMENTS - 100%
(Cost $274,536,704) $ 296,835,208
CURRENCY ABBREVIATIONS
CAD - Canadian dollar
LEGEND
1. Non-income producing
2. 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 $1,729,091 or 0.5% of net
assets.
3. Principal amount is stated in United States dollars unless otherwise
noted.
4. A company in which the fund has ownership of at least 5% of the voting
securities is an affiliated company. A summary of the transactions during
the period in which the issuers were affiliates is as follows:
PURCHASES SALES DIVIDEND MARKET
AFFILIATE COST COST INCOME VALUE
Exco Technologies Ltd. $ 29,807 $ - $ - $ 6,636,240
Maax, Inc. 39,397 239,868 - -
TOTALS $ 69,204 $ 239,868 $ - $ 6,636,240

5. Purchased on an installment basis. Market value reflects only those
payments made through October 31, 1995. The remaining installments
aggregating CAD $292,600 are due July 31, 1996 and January 31, 1997.
6. Purchased on an installment basis. Market value reflects only those
payments made through October 31, 1995. The remaining installments
aggregating CAD $629,000 are due September 23, 1996 and March 24, 1997.
7. Purchased on an installment basis. Market value reflects only those
payments made through October 31, 1995. The remaining installments
aggregating CAD $10,140,000 are due June 10, 1996 and December 31, 1996.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $251,142,180 and $321,844,515, respectively.
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 $120,137 for the period (see Note 4 of Notes to Financial
Statements).
The fund participated in the bank borrowing program. The maximum loan and
the average daily loan balances during the period for which loans were
outstanding amounted to $5,448,000 and $3,832,000, respectively. The
weighted average interest rate was 6.4% (see Note 6 of Notes to Financial
Statements).
INCOME TAX INFORMATION
At October 31, 1995, the aggregate cost of investment securities for income
tax purposes was $274,729,220. Net unrealized appreciation aggregated
$22,105,988, of which $36,677,540 related to appreciated investment
securities and $14,571,552 related to depreciated investment securities.
At October 31, 1995, the fund had a capital loss carryforward of
approximately $10,603,000 of which $5,787,000 and $4,816,000 will expire on
October 31, 2002 and 2003, respectively.
For the period, interest and dividends from foreign countries were
$4,155,218 or $0.22 per share. Taxes accrued or paid to foreign countries
were $599,499 or $0.03 per share.
CANADA
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
OCTOBER 31, 1995

ASSETS

Investment in securities, at value (including repurchase agreements of $6,963,000) (cost $274,536,704) - See $ 296,835,208
accompanying schedule

Cash 902

Receivable for investments sold 36,513,084

Receivable for fund shares sold 3,185,126

Dividends receivable 213,945

Interest receivable 49,318

Redemption fees receivable 1,011

TOTAL ASSETS 336,798,594

LIABILITIES

Payable for investments purchased $ 3,581,975

Payable for fund shares redeemed 6,110,391

Accrued management fee 188,616

Other payables and accrued expenses 154,594

TOTAL LIABILITIES 10,035,576

NET ASSETS $ 326,763,018

Net Assets consist of:

Paid in capital $ 314,438,805

Undistributed net investment income 748,004

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions (10,723,865
)

Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies 22,300,074

NET ASSETS for 18,621,671 $ 326,763,018
shares outstanding

NET ASSET VALUE and redemption price per share ($326,763,018 (divided by) 18,621,671 shares) $17.55

Maximum offering price per share (100/97 of $17.55) $18.09

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED OCTOBER 31, 1995

INVESTMENT INCOME $ 4,385,285
Dividends

Interest 917,073

5,302,358

Less foreign taxes withheld (599,499
)

TOTAL INCOME 4,702,859

EXPENSES

Management fee $ 2,666,061
Basic fee

Performance adjustment (167,417
)

Transfer agent

Fees 1,124,463

Redemption fees (764
)

Accounting fees and expenses 210,073

Non-interested trustees' compensation 2,204

Custodian fees and expenses 61,033

Registration fees 32,178

Audit 36,133

Legal 15,229

Interest 1,363

Miscellaneous 3,424

Total expenses before reductions 3,983,980

Expense reductions (201,478 3,782,502
)

NET INVESTMENT INCOME 920,357

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

Investment securities (including (4,198,646
realized loss of $72,772 on sales of )
investments in affiliated issuers)

Foreign currency transactions (26,778 (4,225,424
) )

Change in net unrealized appreciation (depreciation) on:

Investment securities 10,766,839

Assets and liabilities in foreign currencies 2,216 10,769,055

NET GAIN (LOSS) 6,543,631

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 7,463,988

OTHER INFORMATION $872,526
Sales charges paid to FDC

Deferred sales charges withheld $3,075
by FDC

Accounting fees paid to FSC $209,005

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1995 1994

<TABLE>
<CAPTION>
<S> <C> <C>
Operations $ 920,357 $ (292,208)
Net investment income (loss)

Net realized gain (loss) (4,225,424) (5,844,101)

Change in net unrealized appreciation (depreciation) 10,769,055 1,032,561

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 7,463,988 (5,103,748)

Distributions to shareholders (211,418) -
From net investment income

In excess of net realized gain - (242,990)

TOTAL DISTRIBUTIONS (211,418) (242,990)

Share transactions 261,903,643 568,300,531
Net proceeds from sales of shares

Reinvestment of distributions 205,156 238,390

Cost of shares redeemed (310,934,479) (290,839,654)

Redemption fees 6,103 -

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS (48,819,577) 277,699,267

TOTAL INCREASE (DECREASE) IN NET ASSETS (41,567,007) 272,352,529

NET ASSETS 368,330,025 95,977,496
Beginning of period

End of period (including undistributed net investment income (loss) of $748,004 and $(11,337),
respectively) $ 326,763,018 $ 368,330,025

OTHER INFORMATION
Shares

Sold 15,725,874 32,698,397

Issued in reinvestment of distributions 12,903 13,408

Redeemed (18,554,447) (16,658,932)

Net increase (decrease) (2,815,670) 16,052,873

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED OCTOBER 31,

SELECTED PER-SHARE DATA 1995 1994 D 1993 1992 1991

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 17.18 $ 17.82 $ 14.23 $ 16.28 $ 13.57

Income from Investment Operations

Net investment income (loss) .05 - (.15) (.02) C .03 C

Net realized and unrealized gain (loss) .33 (.60) 3.76 (1.11) 3.59

Total from investment operations .38 (.60) 3.61 (1.13) 3.62

Less Distributions (.01) - (.02) - (.06)
From net investment income

From net realized gain - - - (.92) (.85)

In excess of net realized gain - (.04) - - -

Total distributions (.01) (.04) (.02) (.92) (.91)

Redemption fees added to paid in capital .00 - - - -

Net asset value, end of period $ 17.55 $ 17.18 $ 17.82 $ 14.23 $ 16.28

TOTAL RETURN A, B 2.22% (3.37)% 25.40% (7.09)% 28.13%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 326,763 $ 368,330 $ 95,977 $ 21,701 $ 23,327

Ratio of expenses to average net assets 1.09% 1.57% 2.00% 2.00% 2.01%
E E E

Ratio of expenses to average net assets after expense reductions 1.08% 1.57% 2.00% 2.00% 2.01%

Ratio of net investment income (loss) to average net assets .26% (.14)% (.66)% (.11)% .17%

Portfolio turnover rate 75% 59% 131% 55% 68%

A TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE.
B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN. (SEE NOTE 7 OF NOTES TO FINANCIAL
STATEMENTS.)
C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
D EFFECTIVE NOVEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION
93-2, "DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION
OF INCOME,
CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES."
AS A RESULT, NET INVESTMENT INCOME PER SHARE MAY REFLECT CERTAIN
RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
E FMR VOLUNTARILY AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES
DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN
HIGHER.

</TABLE>

EMERGING MARKETS
PERFORMANCE: THE BOTTOM LINE

EMERGING MARKETS -21.17% 59.48%

EMERGING MARKETS
(INCL. 3% SALES CHARGE) -23.53% 54.69%

Morgan Stanley Emerging
Markets Free Index -19.43% 161.90%

Average Emerging Markets Fund -18.99% 66.60%

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
November 1, 1990. For example, if you invested $1,000 in a fund that had a
5% return over the past year, the value of your investment would be $1,050.
You can compare the fund's returns to the performance of the Morgan Stanley
Emerging Markets Free Index - a broad measure of the performance of stocks
in developing countries, weighted by each country's market capitalization
(or the total value of its outstanding shares). Mexico, Malaysia, Brazil,
and Thailand are most heavily weighted, and together account for over 60%
of the index. Keep in mind that before February 1992, the fund's objective
was more broadly defined, and did not focus specifically on emerging
markets. However, to measure how the fund's performance stacked up against
its peers, you can compare it to the average emerging markets fund, which
reflects the performance of 46 funds with similar objectives tracked by
Lipper Analytical Services over the past 12 months. These benchmarks
include reinvested dividends and capital gains, if any, and exclude the
effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED PAST 1 LIFE OF
OCTOBER 31, 1995 YEAR FUND

EMERGING MARKETS -21.17% 9.78%

EMERGING MARKETS
(INCL. 3% SALES CHARGE) -23.53% 9.11%

Morgan Stanley Emerging Markets Free Index -19.43% 21.23%

Average Emerging Markets Fund -18.99% 10.74%

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
Fidelity EmerginMorgan Stanley EMF
11/01/90 9700.00 10000.00
11/30/90 9564.20 9479.74
12/31/90 9777.33 9880.37
01/31/91 9709.16 10679.30
02/28/91 10118.17 12260.21
03/31/91 10108.44 12766.06
04/30/91 10332.42 12903.41
05/31/91 10332.42 13918.67
06/30/91 9972.10 13421.82
07/31/91 10186.34 14119.08
08/31/91 10108.44 14418.70
09/30/91 10225.30 13869.26
10/31/91 10127.91 14439.40
11/30/91 9991.58 14225.77
12/31/91 10438.08 15824.40
01/31/92 10517.68 17656.36
02/29/92 10826.15 18442.83
03/31/92 10806.24 19068.46
04/30/92 11064.96 18940.35
05/31/92 11542.58 18873.02
06/30/92 11522.68 17002.12
07/31/92 11144.56 17189.36
08/31/92 10865.95 16390.47
09/30/92 10796.29 16450.88
10/31/92 10995.30 17332.58
11/30/92 10905.75 17144.49
12/31/92 11048.91 17652.99
01/31/93 11201.38 17738.37
02/28/93 11770.60 18033.91
03/31/93 12095.86 18628.41
04/30/93 12482.12 19056.85
05/31/93 12756.56 19581.32
06/30/93 12919.19 20162.41
07/31/93 13142.82 20705.31
08/31/93 14057.63 22457.49
09/30/93 14372.73 23058.76
10/31/93 16446.31 25127.66
11/30/93 17096.84 26239.62
12/31/93 20082.32 30576.92
01/31/94 19501.26 31133.23
02/28/94 18950.78 30579.38
03/31/94 17115.84 27812.28
04/30/94 16952.74 27255.97
05/31/94 17391.08 28188.79
06/30/94 16167.79 27411.79
07/31/94 17401.28 29116.21
08/31/94 19613.39 32729.91
09/30/94 20112.90 33101.88
10/31/94 19623.58 32504.77
11/30/94 18267.77 30814.71
12/31/94 16480.81 28339.78
01/31/95 14212.53 25324.70
02/28/95 14376.01 24675.15
03/31/95 14089.92 24831.93
04/30/95 14386.23 25945.92
05/31/95 15837.11 27326.23
06/30/95 16021.03 27407.06
07/31/95 16828.21 28022.26
08/31/95 16317.33 27362.19
09/30/95 16245.81 27232.33
10/31/95 15469.28 26189.87

Let's say you invested $10,000 in Fidelity Emerging Markets Fund on
November 1, 1990, when the fund started, and paid the 3% sales charge. By
October 31, 1995, the value of your investment would have grown to $15,469
- - a 54.69% increase on your initial investment. That compares to $10,000
invested in the Morgan Stanley Emerging Markets Free Index, which would
have grown to $26,190 over the same period - a 161.90% increase.

An interview with Richard Hazlewood, Portfolio Manager of Fidelity Emerging
Markets Fund
Q. HOW DID THE FUND PERFORM, RICHARD?
A. For the 12 months ended October 31, 1995, the fund had a total return of
- -21.17%. During the same period, the Morgan Stanley Emerging Markets Free
Index posted a return of -19.43%. The average emerging markets fund, as
tracked by Lipper Analytical Services, had a total return of -18.99% for
the 12-month period.
Q. WAS THERE ANY PARTICULAR REASON THE FUND UNDERPERFORMED?
A. The fund has generally underperformed in down markets and outperformed
in up ones. This has a lot to do with the breadth of stocks I've selected
for the portfolio. My large capitalization stocks have tended to do well,
but the fund's overweighting in mid- and small-capitalization stocks has
pulled it down. A stabilization of interest rates should benefit the
smaller stocks. Smaller companies, rather than large ones, tend to be more
sensitive to changes in interest rates - which impact their borrowing costs
- - because they have a greater effect on a smaller company's balance sheet.
Performance was considerably better over the past six months because of the
solid returns of some of the fund's large-company stocks.
Q. DO YOU THINK EMERGING MARKETS MAY BE ON THE UPSWING?
A. I think the key thing is interest rates. Emerging markets have come
through a difficult period that began when interest rates rose in early
1994 and included events like the Mexican peso devaluation - all of which
caused a general flight of capital back to the U.S. Historically, emerging
markets tend to do well when interest rates decline. All I can say is
price-to-earnings multiples - a standard measure of valuation - generally
have contracted and most stocks have become cheaper. In a stable or falling
rate scenario, I believe the only real threat that could change the whole
playing field is currency devaluation.
Q. WHY DO SOUTHEAST ASIAN COMPANIES CURRENTLY MAKE UP THE LARGEST PART OF
YOUR PORTFOLIO?
A. First, I should point out that I've tended to overweight the regions
where I've found the best stocks. Breaking it down by countries, that would
be Malaysia and Thailand. Let me broaden out a bit, though. Long-term, Asia
has the highest savings rate in the world. Also, most Southeast Asian
markets have shown tremendous growth in recent years. That said, looking at
a short-term horizon, one problem I see with Southeast Asia is that the
economic cycle is out of kilter with the U.S. Interest rates in the U.S.
have been falling for some time, but it appears they haven't peaked in
Southeast Asia yet - thus detracting from its attractiveness as an
investment location and causing mounting trade deficits.
Q. YOU MENTIONED MALAYSIA AND THAILAND. WHAT STOCKS DO YOU LIKE IN THOSE
COUNTRIES?
A. Malaysia and Thailand are, in my opinion, the best places for stock
picking. I've found good quality managements and fast-growing companies -
many of which can offer reasonable valuations as well. Thai banks are
currently about 12% of the fund. Basically, the Thai banking industry is
very well managed with earnings growing at 20% to 30% per annum. I also
favored many independent power producers (IPPs) from these countries.
Currently, there is a trend away from traditional electric utilities to
these private businesses. Some examples owned by the fund at the end of the
period included YTL Corporation and Malakoff BHD, both of Malaysia.
Q. MUCH HAS BEEN WRITTEN ABOUT THE ECONOMIC PROBLEMS OF MEXICO AND LATIN
AMERICA - OR THE SO CALLED "TEQUILA EFFECT." WHAT'S YOUR VIEW OF THE
SITUATION AND HAVE YOU BEEN ABLE TO FIND ANY BRIGHT SPOTS?
A. I think the key problem with Latin America has been the lack of saving.
Basically, many governments and individuals have been spending more than
they are saving. It's the opposite of the high savings rates in Asia. My
short-term view is that it's going to be tough going for many of these
Latin American markets because local interest rates have gone up a great
deal and many of their economies - especially Mexico - are in bad shape.
Long term, however, I think there is a positive side. In Brazil, the
administration of President Fernando Henrique Cardoso has taken steps
necessary to improve the Brazilian economy, such as dampening inflation by
introducing a new currency, raising huge foreign exchange reserves in
excess of $50 billion, introducing an ambitious privatization program and
encouraging savings. Chile also has taken steps to alleviate its savings
problem. The best example of this is the country's large pension funds.
Q. SO WHAT WERE SOME OF THE STOCKS YOU LIKED IN LATIN AMERICA?
A. The fund remains underweighted in Latin America, but there are a few
attractive situations I've found. In Brazil, I liked the telecommunications
company Telebras. This company is basically a privatization play, but it
has been growing its cellular phone business as well. In Mexico, I
basically concentrated the fund's holdings in three companies: Grupo Carso,
a conglomerate with a tobacco business; paper company Kimberly-Clark de
Mexico; and Cifra, a Mexican version of Wal-Mart.
Q. WHAT ARE SOME OF THE MAJOR SHIFTS IN HOLDINGS YOU'VE CARRIED OUT THIS
YEAR.
A. I've reduced commodity cyclical - or economically sensitive - stocks,
such as chemicals, paper, iron and steel. These stocks tend to perform well
at the beginning of a growth cycle rather than the mature phase of growth
most emerging markets are in now. I've also reduced the fund's exposure to
large telecommunications companies. In fact, I've all but eliminated
exposure to long-distance companies. In my opinion, long-distance and
international telephone rates are grossly overpriced everywhere in the
world. I believe it's just a matter of time before pricing collapses and
these stocks decline. At the end of the period, I only owned telecom
companies that are involved in the cellular communications business, such
as Telebras.
Q. WERE THERE ANY MAJOR DISAPPOINTMENTS?
A. Yes. Hong Kong-based construction and real estate development firm
Hopewell Holdings had been disappointing. The company is involved with
developing a highway that would link Hong Kong with the city of Guangzhou,
located in the People's Republic of China. Unfortunately, the cost of the
road greatly exceeded its projections. Thus, it has taken on a large amount
of debt to finish the road.
Q. WHAT'S YOUR OUTLOOK, RICHARD?
A. As I said before, the performance of these markets is going to have a
lot to do with interest rates. If rates peak or even begin to fall, you
could see money flowing back into these economies. Global investors may
also notice how attractive many emerging markets appear on a valuation
basis relative to larger markets like the U.S.

FUND FACTS
GOAL: to increase the value of the fund's
shares by investing mainly in equity securities of
emerging market issuers which can be found in
regions such as Southeast Asia, Latin America and
Eastern Europe
START DATE: November 1, 1990
SIZE: as of October 31, 1995, more than
$1.0 billion
MANAGER: Richard Hazlewood, since 1993;
assistant Fidelity Low-Priced Stock Fund and
Fidelity Contrafund, 1992-93; analyst,
Japanese stocks, 1991-92; joined Fidelity in
1991
(checkmark)
RICHARD HAZLEWOOD ON STOCK SELECTION IN EMERGING
MARKETS:
"The key story to this fund is stock selection.
Basically, I take a bottom-up approach to picking
individual stocks. I look for companies with strong
potential growth that are trading at a discount.
Quality management is also a must. I spend a great
deal of time traveling the world visiting many of these
companies, meeting with management and doing
on-site fundamental research. I go where there is the
best stock picking opportunities."
(solid bullet) Major shifts: The fund's top holding on April 30,
1995, Telefonos de Mexico, which made up 2.8% of
the fund, has been eliminated from the portfolio as of
October 31, 1995.
(solid bullet) The Mexico Bolsa Index, which is a common
proxy for the Mexican market, was the worst
performing index out of 53 world indices with a
- -58.4% return for the year ended October 31, 1995,
according to Bloomberg.
(solid bullet) Krung Thai Bank was the largest contributor to
the fund with a total return of 60.2% for the six
months ended October 31, 1995.
(solid bullet) The fund's top industry allocation, finance,
consisted mainly of Thai and Malaysian banks.
World-wide, however, the Asia/Pacific financial
industry underperformed the rest of the world,
according to Dow Jones. For the 10 months ended
October 31, 1995, U.S. financial stocks, the world
leader, returned 38.9%, while Asia/Pacfic financial
stocks returned -9.9%.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER,
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
EMERGING MARKETS
INVESTMENT CHANGES

GEOGRAPHIC DIVERSIFICATION
AS OF OCTOBER 31, 1995

Sigapore 4.0%
India 4.2%
Row: 1, Col: 1, Value: 4.2
Row: 1, Col: 2, Value: 17.2
Row: 1, Col: 3, Value: 4.9
Row: 1, Col: 4, Value: 15.2
Row: 1, Col: 5, Value: 5.1
Row: 1, Col: 6, Value: 20.6
Row: 1, Col: 7, Value: 5.1
Row: 1, Col: 8, Value: 5.2
Row: 1, Col: 9, Value: 9.0
Row: 1, Col: 10, Value: 5.8
Row: 1, Col: 11, Value: 4.0
Row: 1, Col: 12, Value: 3.6
Argentina 3.6%
Thailand 17.2
%
Indonesia 5.8%
Brazil 9.0%
Philippines 4.9
%
Hong Kong 5.2%
Korea (South) 5.1%
Other 15.2
%
Mexico 5.2%
Malaysia 20.6%
AS OF APRIL 30, 1995
4.6.86.8
India 5.9%
Argentina 4.3%
Row: 1, Col: 1, Value: 5.9
Row: 1, Col: 2, Value: 16.3
Row: 1, Col: 3, Value: 3.8
Row: 1, Col: 4, Value: 17.3
Row: 1, Col: 5, Value: 3.8
Row: 1, Col: 6, Value: 7.4
Row: 1, Col: 7, Value: 20.3
Row: 1, Col: 8, Value: 4.5
Row: 1, Col: 9, Value: 9.6
Row: 1, Col: 10, Value: 6.8
Row: 1, Col: 11, Value: 4.3
Brazil 6.8%
Thailand 16.3
%
Hong Kong 9.6%
Korea (South) 4.5%
Philippines 3.8
%
Other 17.3
%
Malaysia 20.3%
United States 3.8%
Mexico 7.4%
ASSET ALLOCATION
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Stocks and closed-end
investment companies 96.4 92.1

Bonds 1.1 4.3

Short-term investments 2.5 3.6

TOP TEN STOCKS
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Industrial Finance Corp. (For. Reg.) 3.4 2.5
(Thailand, Credit & Other Finance)

Hong Leong Bank BHD 2.9 0.2
(Malaysia, Banks)

Krung Thai Bank (For. Reg.) 2.5 2.3
(Thailand, Banks)

Thai Militarty Bank Ltd. (For. Reg.) 2.4 1.4
(Thailand, Banks)

Electrobras PN Class B 2.3 1.5
(Brazil, Electric Utility)

Thai Farmers Bank PCL 2.2 2.2
(Thailand, Banks)

Siam City Bank PCL (For. Reg.) 2.1 1.6
(Thailand, Banks)

Bangkok Bank Ltd. 1.9 2.3
(Thailand, Banks)

Hume Industries BHD 1.8 1.1
(Malaysia, Building Materials)

Grupo Carso SA de CV Class A-1 1.8 2.2
(Mexico, Conglomerates)

TOP TEN MARKET SECTORS
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Finance 36.9 29.4

Construction & Real Estate 11.7 11.2

Basic Industries 10.7 12.7

Utilities 10.4 15.7

Nondurables 7.0 4.2

Holding Companies 4.7 6.6

Retail & Wholesale 3.7 2.9

Durables 3.0 3.0

Technology 2.2 1.8

Conglomerates 1.9 2.2

EMERGING MARKETS
INVESTMENTS OCTOBER 31, 1995

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 95.9%
SHARES VALUE (NOTE 1)
ARGENTINA - 3.6%
Astra Comp Argentina de
Petroleum (Reg.) 2,034,270 $ 3,010,569
Banco de Galicia Y Buenos Aires SA
sponsored ADR representing
Class B shares 406,602 7,776,263
Banco Frances del Rio de la Plata SA ADR 229,200 5,013,750
Banco Frances del Rio de la Plata SA 344,459 2,504,217
Buenos Aires Embotelladora SA
sponsored ADR 124,300 2,843,363
Central Costanera SA ADR (b) 109,700 2,989,325
Molinos Rio de La Plata SA Class B (Reg) 500,215 3,126,344
Perez Companc Class B 1,958,151 8,635,014
Telecom Argentina Stet France
Telecom SA 876,779 3,375,430
39,274,275
AUSTRALIA - 0.0%
Odin Mining & Investment Co. (a) 280,750 70,454
BANGLADESH - 0.2%
Advanced Chemical Industries 150,000 485,890
Bangladesh Lamps Ltd. 322 22,788
Beximco Pharmaceuticals Ltd. 392,680 871,027
Padma Textile Mills Ltd. 74,250 710,613
2,090,318
BERMUDA - 0.4%
AES China Generating Co. Class A (a) 10,000 100,000
Central European Media Class C (a) 51,000 1,173,000
Credicorp Ltd. 194,604 3,210,966
4,483,966
BRAZIL - 8.8%
Acesita Cia Acos Especiais Itabira:
Ord. 318,566,578 2,650,569
(warrants) (a) 18,324,626 191
Bradesco PN 848,608,724 7,766,806
Brahma (Cia Cervejaria):
PN Class B (Pfd. Reg.) 17,457,373 6,662,252
PN (warrants) (a) 130,763 19,720
ON (warrants) (a) 1,676,255 331,241
Brasmotor PN 5,048,100 1,181,303
Casa Anglo PN Ord. 9,831,557 613,514
Compania Paulista de Forca Luz Ord. 34,602,260 1,707,262
Compania Vale do Rio Doce PN Ord. 74,572,600 12,021,580
Coteminas PN 10,656,252 3,324,884
Eletrobras PN Class B 86,989,300 24,789,463
Itaubanco PN (Pfd. Reg.) 12,670,000 3,755,539
Itausa Investimentos Itau SA 773,900 442,689
Iven SA (a) 2,320,000 1,302,940
Karsten PN 1,451,638 45,746
Klabin Industria de Papel e Celulose PN 1,413,887 1,323,451
Light Servicos de Electricidade SA Ord. 2,890,000 873,162
Lojas Americanas 165,754,800 3,965,021
Moinho Santista-Industrias Gerais SA
Ord. (a) 343,700 228,776
Perdigao SA Comercio e Industria PDG
(pfd shares) (a) 9,720,200 17,591
Souza Cruz Industria Comerico 631,600 4,519,405
Telebras PN (Pfd. Reg.) 207,071,000 8,396,978
Telesp PN (Pfd. Reg.) 48,411,308 6,948,770
Unibanco PN 51,278,034 1,797,264
Votorantim Celulose E Paper SA
(Pfd. Reg.) 47,768,505 1,440,755
96,126,872

SHARES VALUE (NOTE 1)
CANADA - 0.0%
Bolivar Goldfields Ltd. (a) 51,750 $ 36,566
CHILE - 1.5%
Banco Osorno y la Union SA Series A
sponsored ADR 204,900 2,766,150
Compania Cervecerias Unidas SA ADR 148,500 3,434,063
Cristalerias de Chile SA sponsored ADR 73,200 1,775,100
Empresas Telex Chile SA sponsored ADR 128,300 1,154,700
Provida SA sponsored ADR 189,700 4,647,650
Santa Isabel SA sponsored ADR (a) 34,900 789,613
Soc Quimica y Minera de Chile ADR 30,000 1,301,250
Vina Concha Stet y Toro SA
sponsored ADR 20,200 353,500
16,222,026
CHINA (PEOPLES REP) - 0.6%
China First Pencil Co. Ltd. Class B (a)(e) 3,959,762 1,235,446
Huaneng Power International, Inc.
Class N sponsored ADR (a) 10,000 166,250
Qingling Motors Co. Ltd. Class H 1,000,000 218,592
Shandong Huaneng Power Development
Ltd. Class N sponsored ADR 10,170 81,360
Shanghai Hero Ltd. Class B (e) 3,314,480 961,199
Shanghai Industrial Sewing Machine Corp.
Class B 1,135,600 193,052
Shanghai New Asia Class B (a) 100,000 48,000
Shanghai Refrigerator Compressor Co.
Class B (a)(e) 3,644,420 1,749,322
Shanghai Tyre & Rubber Class B shares 150,000 41,100
Shanghi Vacuum Electron Devices Co.
Ltd. (a)(e) 6,743,518 1,483,574
Tsingtao Brewery Co. Ltd. 952,000 252,428
6,430,323
COLOMBIA - 0.9%
Banco de Columbia GDR (b) 371,900 2,184,913
Banco Ganadero Class C sponsored ADR 54,200 528,450
Banco Industrial Columbiano sponsored
ADR 182,000 2,479,750
CADENALCO Gran Cadena de
Almacenes Colombianos ADR (b) 15,500 197,625
Carulla & CIA SA Class B sponsored
ADR (b) 80,720 585,220
Cementos Argos SA 28,200 169,667
Compania Nacional de Chocolates 130,000 1,036,350
Noel (Industria Alimenticias) 95,000 357,233
Suramericana de Seguros SA 116,567 2,057,237
9,596,445
CZECH REPUBLIC - 0.0%
Deza Valasske Mezirici AS 1,000 76,482
GREECE - 0.3%
Alpha Credit Bank 40,000 2,404,447
Hellenic Bottling Co. SA 11,250 358,728
2,763,175
HONG KONG - 4.8%
Consolidated Electric Power Asia Ltd. 5,166,200 10,457,624
Dah Sing Financial Holdings Ltd. 2,259,675 5,114,834
Dao Heng Bank Group Ltd. 1,202,000 4,407,629
First Pacific Bancshares Holding Ltd. 7,050,000 1,449,885
Guoco Group Ltd. 1,514,000 7,010,619
International Bank of Asia Ltd. 2,610,000 1,552,908
JCG Holdings Ltd. 10,686,000 7,809,282
Kumagai Gumi 1,000,000 756,665
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
HONG KONG - CONTINUED
Kwong Sang Hong International Ltd. 5,000,000 $ 1,280,509
Liu Chong Hing Bank Ltd. 1,133,000 1,392,198
Liu Chong Hing Investment Ltd. 11,058,000 10,941,717
Magnum International Holdings Ltd. 3,750,000 179,465
Magnum International Holdings Ltd.
(warrants) (a) 250,000 3,880
Nanyang Holdings Ltd. 430,000 378,203
52,735,418
HUNGARY - 0.0%
Pannonplast Plastic Industries PLC 25,000 323,255
INDIA - 4.0%
Alacrity Housing Ltd. 160,000 128,655
Apollo Hospitals Enterprises Ltd. 100,000 97,953
Bajaj Auto 176,300 3,851,360
Bajaj Auto Ltd. GDR 20,000 525,000
Bharat Heavy Electricals Ltd. 1,000,000 2,777,667
Bharti Telecom Ltd. 14,000 29,883
CESC Ltd. GDR (a) 26,000 70,200
Chemplast Sanmar Ltd. (b) 315,000 1,105,263
Core Parenterals Ltd. GDR (a) 348,000 1,392,000
Cosmo Films Ltd. 20,275 84,776
Crompton Greaves Ltd. 300,000 1,833,333
E.I.D.-Parry GDR 50,000 162,500
Finolex Cables Ltd. GDR 55,000 330,000
Finolex Cables Ltd. GDR (b) 175,000 1,050,000
Great Eastern Shipping Co. Ltd. 600,000 844,737
Great Eastern Shipping Co. Ltd. GDR 172,700 1,447,226
Gujarat Ambuja Cement Ltd. GDR 40,000 315,200
HDFC Bank Ltd. (a) 500 501
Himachal Futuristic Communications Ltd. 20,000 32,456
Hindalco Industries Ltd. GDR 20,000 620,000
Housing Development Finance Corp. Ltd. 48,500 3,667,939
Indian Rayon & Industries, Inc. GDR 85,000 956,250
Industrial Credit & Investments Corp. Ltd. 1,425,900 3,744,097
JCT Electronics Ltd. 50,000 40,310
JK Corp. Ltd. GDR (a) 75,000 216,000
JK Corp. Ltd. GDR (b) 250,000 720,000
Larsen and Toubro Ltd. GDR 151,000 1,080,842
Mahindra & Mahindra Ltd. GDR 225,000 2,475,000
Maral Overseas Ltd. (a) 405,000 438,158
Mukand Ltd. 95,000 733,333
Nicholas Piramal India Ltd. 25,000 179,094
Prime Securities 300,000 446,053
Reliance Industries Ltd. 1,000,000 7,000,728
SCICI Ltd. 110,000 114,985
Shriram Industrial Enterprises Ltd.:
GDR (b) 105,600 594,528
GDR (warrants) (a)(b) 35,200 352
State Bank Of India 20,000 122,450
Tata Electric Companies GDR 1,000 310,000
Tata Electric Companies GDR (b) 1,200 372,000
Tata Engineering & Locomotive Ltd. 21,280 242,083
Tata Engineering & Locomotive Ltd.
(warrants) (a)(b) 357,000 2,052,750
Unitech Ltd. 254,350 959,390
Zee Telefilms Ltd. 88,300 406,122
43,571,174
INDONESIA - 5.8%
APAC Centertex Corp. PT (For. Reg.) (a) 1,221,000 766,150
Andayani Megah PT 1,695,500 1,455,847
Asahimas Flat Glass PT (b) 1,000,000 1,144,871
Bank Bali PT (For. Reg.) 175,000 408,411

SHARES VALUE (NOTE 1)
Bank Bali PT (For. Reg) (warrants) (a) 100,000 $ 59,886
Bank Niaga PT 663,000 2,364,731
Barito Pacific Timber PT (For. Reg.) 80,000 55,482
Bimantara Citra (For. Reg.) (a) 613,500 472,755
Dharmala International Land 1,000,000 561,427
Duta Anggada Realty Ord. 3,295,000 2,067,538
Indo Rama Synthetics PT (For. Reg.) 262,500 869,799
Lippo Bank (For. Reg.) 1,193,050 2,416,572
Matahari Putra Prima PT (For. Reg.) 8,482,500 17,741,923
Modernland Realty PT 100,000 140,907
Mulia Industrindo PT (For.) 1,450,000 4,277,855
Pakuwon Jati PT (For. Reg.) 4,006,500 3,396,089
Panin Bank PT (For. Reg.) 2,463,750 2,712,188
Putra Surya Perkasa PT (For. Reg.) 2,886,833 1,080,498
Roda Vivatex PT (For. Reg.) 2,360,000 1,948,482
SUCACO PT 50,000 123,294
Sampoerna Hanjaya Mandala (For. Reg.) 1,380,000 12,760,908
Sekar Bumi PT (For. Reg.) (a)(b) 361,500 477,543
Semen Gresik (For. Reg.) 1,012,500 2,630,451
Trias Sentosa (For. Reg.) 803,000 1,767,945
United Tractors PT (For. Reg.) 584,000 1,157,200
62,858,752
ISRAEL - 0.1%
Elbit Computer Ltd. 7,500 146,250
Gilat Satellite Networks 5,000 111,250
Koor Industries Ltd. 10,640 936,385
Optrotech Ltd. 10,000 132,500
Teva Pharmaceutical Industries Ltd. ADR 4,000 157,000
1,483,385
KOREA (SOUTH) - 5.0%
Cho Hung Bank Co. Ltd. 85,037 1,122,490
Chosun Brewery 16,674 642,161
Chosun Brewery (New) (a) 5,100 173,966
Dae Chang Industrial Co. 3,457 65,964
Dai Han Investment & Finance 1,999 53,035
Dong Yang Tin Plate Industries (a) 6,370 218,952
Han Chang Co. Ltd.(a) 2,097 95,374
Hotel Shilla (a) 83,000 1,247,468
Hyundai International Merchant Bank 20,400 762,517
Hyundai Motor Service Co. Ltd. 34,750 1,866,799
Hyundai Securities Co. Ltd. 31,202 664,696
Ke Yang Electric Machinery 10,000 355,486
Kookmin Bank (a) 92,800 1,889,838
Kookmin Bank (New) (a) 13,746 195,945
Korea Electric Power Corp. 249,410 10,960,885
Korea Electric Power Corp. sponsored
ADR (a) 113,000 2,782,625
Korea Electronics Co. Ltd. 10,000 365,941
Korea First Securities Co. Ltd. 61 941
Korea Mobile Telecommunications Corp. 12,100 10,719,840
LG Securities Co. Ltd. 30,690 673,844
Mando Machinery Corp. 1,000 65,111
Samsung Electronics Co. Ltd.:
(vtg.) 49,900 11,120,625
(New) (a) 606 131,076
GDS (vtg.) (a) 1,068 122,393
Samsung Fire & Marine Insurance 2,305 1,137,663
Shinhan Bank (a) 25,680 585,960
Shinhan Investment & Finance 31,952 659,794
Ssangyong Oil Refining (a) 40,000 1,155,329
Sunny-Emi Co. (a) 10,300 329,805
Tae Gu Department Store Co. 41,500 1,182,382
Yeonhap Insupanel Co. 945 15,315
Yu Hwa Securities Co. 39,030 596,812
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
KOREA (SOUTH) - CONTINUED
Yukong Ltd.:
GDR (a)(b) 23,006 $ 432,969
NV GDR (b) 192,000 2,016,000
54,410,001
LUXEMBOURG - 0.0%
Quilmes Industries SA 26,700 469,920
MALAYSIA - 20.4%
Advance Synergy BHD (a) 100,000 120,413
Affin Holdings BHD 1,164,000 2,198,603
Arab Malaysian Corp. BHD 4,476,000 15,059,439
Arab Malaysian Finance BHD (For. Reg.) 3,068,666 10,747,123
Bandar Raya Development BHD 2,276,000 3,403,364
Berjaya Group BHD 17,109,000 10,782,682
Boustead Holdings Berhad 1,378,000 2,765,489
Buildcon BHD 1,026,000 2,119,626
East Asiatic BHD 350,000 600,492
Gadek BHD 1,380,000 7,548,254
Golden Pharos BHD 592,000 1,043,644
Hong Leong Bank BHD 11,826,000 31,877,266
Hong Leong Credit BHD 3,825,000 16,255,780
Hume Industries BHD 3,750,000 20,068,864
IOI Properties BHD (rights) (a) 750 -
Industrial Oxygen, Inc. BHD 3,000 2,810
Johan Holdings BHD 1,002,000 737,330
Kamunting Corp. BHD 1,990,000 1,331,235
Kent (George) BHD 331,000 622,599
Larut Consolidated BHD 1,632,000 2,093,584
MGR Corp. BHD 1,481,000 2,354,448
Malakoff BHD 4,234,000 12,579,124
Malaysian Industrial Development
Finance BHD Ord. 701,000 1,368,209
Malaysian Plantations BHD 5,017,000 4,126,131
Malaysian Resources Corp. BHD 3,305,000 4,812,002
Metacorp BHD 1,540,000 3,908,706
Multi-Purpose Holdings BHD 1,492,000 1,996,183
OSK Holdings BHD 418,000 605,308
Oyl Industries BHD 1,649,000 12,393,861
Park May BHD 584,000 1,332,887
Prime Utilities BHD 50,000 462,371
Public Finance BHD (For. Reg.) 2,718,000 5,112,460
Sungei Bagen Rubber Co. BHD 10,000 468,273
TA Enterprise BHD 1,801,000 2,062,336
Tongkah Holdings BHD (a) 2,499,600 4,229,525
Westmont Land BHD 4,486,000 6,849,259
Wing Tiek Holdings BHD 1,000 4,289
YTL Corp. BHD 3,456,400 18,769,629
YTL Corp. BHD (warrants) (a) 1,150,800 4,483,195
Yeo Hiap Seng BHD 184,000 372,887
Zalik BHD 2,578,333 4,930,919
222,600,599
MEXICO - 5.1%
Cemex SA, Series B 899,900 2,798,276
Cifra SA Class C 4,985,300 5,115,658
Corporacion Geo SA de CV (a) 283,960 764,184
Corporacion Geo SA de CV Class B
sponsored ADR (a)(b) 12,700 133,350
Desc SA de CV, Series C
sponsored ADR (a) 100,000 1,200,000
Emvasa del Valle de Enah Ord. (a) 1,217,000 1,114,652
Far-Ben SA de CV Series B (a) 575,800 545,281
Fomento Economico Mexicano SA de
CV (FEMSA) Class B 527,100 1,099,646

SHARES VALUE (NOTE 1)
Groupo Financiero Serfin SA sponsored
ADR (a) 400,000 $ 1,550,000
Gruma SA Class B 250,614 743,872
Grupo Carso SA de CV Class A-1 (a) 3,696,000 19,485,625
Grupo Casa Autrey SA sponsored ADR 108,900 1,388,475
Grupo Elektra SA 151,200 598,389
Grupo Financiero Bancomer Class B (a) 7,864,900 2,045,430
Grupo Financiero Inbursa SA Class B 537,000 1,464,890
Grupo Financiero Probursa B1 Ord. (a) 28,737 1,259
Grupo Modelo SA de CV Class C Ord. 182,600 699,429
Grupo Posadas SA de CV Class L (a) 390,000 115,208
Grupo Televisa SA de CV
sponsored ADR (b) 287,400 4,921,725
Internacional de Ceramica SA
sponsored ADR (a) 250,000 1,437,500
Kimberly-Clark de Mexico SA Class A 500,000 6,572,438
Sears Roebuck de Mexico SA de CV (a) 681,000 1,876,961
Sears Roebuck de Mexico SA de
CV ADR representing Series B-1 (a)(b) 47,000 235,000
Tolmex SA Class B2 27,500 103,975
56,011,223
PAKISTAN - 1.4%
Adamjee Insurance Ltd. 161,125 494,243
Al-Faysal Investment Bank Ltd. (a) 464,000 417,199
Askari Commercial Bank (a) 413,080 467,797
Askari Commercial Bank (rights) (a) 179,600 86,215
Askari Leasing Ltd. (a) 384,400 370,741
Askari Leasing Ltd. (rights) (a) 384,400 233,117
Bank of Punjab (a) 33,150 26,159
Crescent Investment Bank Ltd. 715,000 591,825
DG Kahn Cement Ltd. (e) 912,550 980,052
Dandot Cement Co. Ltd. (a) 593,750 409,898
Engro Chemical Pakistan Ltd. 24,000 95,395
Fauji Fertilizer Co. Ltd. 850,000 1,366,326
First Grindlays Modarba 565,200 289,042
Hub Power Co. Ltd. (a) 2,000,000 1,239,730
Hub Power Co. Ltd. GDR (a) 112,600 1,857,900
Ibrahim Energy Ltd. (a) 237,000 228,579
Maple Leaf Cement Factory Ltd. (a) 240,000 190,088
Muslim Commercial Bank Ltd. (a) 299,250 334,319
National Development Leasing Corp. 469,300 253,846
Nishat Tek Ltd. (a) 51,700 42,672
PEL Appliances Ltd. (a) 8,250 21,881
Packages Ltd. 10,000 34,195
Pak Electron Ltd. (a) 50,000 77,450
Pakistan State Oil Co. Ltd. 304,640 3,169,871
Pakland Cement Ltd. (a) 300,000 415,291
Sui Southern Gas Pipelines Ltd. (a) 831,960 709,245
Sunflo Cit-Russ Ltd. (a) 2,350,000 480,657
Trust Leasing Corp. Ltd. (a) 290,550 144,202
Union Bank Ltd. 555,300 385,278
15,413,213
PANAMA - 1.0%
Banco Latino Americano de
Exportaciones SA Class E 127,100 5,306,425
Panamerican Beverages, Inc. Class A 211,000 5,776,125
11,082,550
PERU - 1.7%
Banco Wiese Ltd. 209,720 346,606
Banco Weise Ltd. sponsored ADR 177,118 1,173,407
Cementos Lima SA Class C (b) 60,692 900,349
Cementos Notre Pacasmayo SA Class T 101,865 224,022
Consor De Alim Fabril Pacifico (a) 511,726 529,994
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
PERU - CONTINUED
Minsur SA Class T 255,489 $ 1,776,825
Southern Peru Copper Corp.
Series 2 (a) 107,478 368,997
Telefonica del Peru (CPT):
Class A 586,231 1,033,461
Class B 6,665,174 11,896,851
18,250,512
PHILIPPINES - 4.9%
Aboitiz Equity Ventures, Inc. (a) 5,191,600 988,021
Aboitiz Equity Ventures, Inc. (a)(b) 1,504,400 286,304
Ayala Corp. Class B 3,966,656 4,041,383
Ayala Land, Inc. Class B 1,079,531 1,245,134
Bankard, Inc. (a) 1,100,000 454,633
Belle Resources Corp. (a) 5,103,999 775,117
Benpress Holdings Corp. GDR (a) 89,100 512,325
Benpress Holdings Corp. GDR (a)(b) 192,500 1,155,000
C & P Homes, Inc. (a)(b) 1,600,000 1,030,373
Filinvest Land, Inc. ORD (a) 550,000 148,020
First Phillipines Holdings Corp. 354,110 748,791
Guoco Holdings, Inc. Class B (e) 36,485,000 6,522,693
House of Investments, Inc. 5,095,000 1,116,551
Interport Resources Corp. Class B (a) 100,000,000 69,200
Ionics Circuits, Inc. (a) 500,000 701,653
Kuok Philippine Properties, Inc. (a) 311,200 13,879
Lepanto Consolidated Mining Co. (a) 92,170,000 673,293
Liberty Telecoms Holdings, Inc. (a) 63,304,000 3,163,985
Liberty Telecoms Holdings, Inc. (a)(b) 20,919,000 1,045,548
Manila Mining Corp. Class B 351,788,000 946,767
Megaworld Properties & Holdings, Inc. (a) 6,004,000 3,000,846
Metropolitan Bank & Trust Co. 22,551 416,166
Metro Pacific, Inc. Class B 83,830,766 12,086,326
Mondragon International
Philippines, Inc. (a) 6,487,000 2,045,114
Negros Navigation Co. (a) 2,625,000 287,630
PICOP Resources 12,675,000 4,142,157
Philex Mining Corp. (a) 7,552,934 871,158
Private Development Corp. of the
Philippines (a) 2,016,000 1,608,305
Robinson's Land Corp. (a) 16,673,000 2,467,937
SM Prime Holdings, Inc. (a) 1,300,000 349,865
Sanitary Wares Manufacure Corp. 186,000 63,645
San Miguel Corp. Class B 6,500 21,492
Steniel Manufacturing Corp. 3,280,750 567,604
United Paragon Mining Corp. (a) 4,500,000 1,125
53,568,040
POLAND - 0.3%
BRE (Bank Rozwoju Eksportu) 20,000 311,455
Debica SA Class A 5,000 69,099
Krosno Krosnienskie Szkala SA 14,000 228,292
Okocimskie Zaklady Piwowarskie SA (a) 20,000 481,044
RAFAKO (a) 10,000 76,233
Warta SA (Reg) (a) 7,203 138,011
Wedel SA 5,000 220,139
Zaklady Piwowarskie W Zywcu SA 15,500 1,232,165
2,756,438
PORTUGAL - 0.0%
CIN 6,250 189,467
Mague (Constru Metalom) 1,586 30,991
Unicer (Uniao Cervejeira) SA 10,000 162,388
382,846
RUSSIA - 0.1%
Mosenergo AO sponsored ADR (a)(b) 65,000 568,750

SHARES VALUE (NOTE 1)
SINGAPORE - 4.0%
ABR Holdings Ltd. 500,000 $ 944,130
Asiamatrix Ltd. 420,000 614,851
Focal Finance Ltd. 503,200 960,849
Hong Leong Finance Ltd.:
(For. Reg.) 909,000 2,751,429
(warrants) (a) 424,600 369,348
Keppel Finance Ltd. 1,848,000 2,326,337
L&M Group Investments Ltd. 500,000 937,058
Overseas Union Trust Ltd. (For. Reg.) 751,000 2,018,246
Singapore Finance Ltd. 3,211,400 4,973,809
Singapore Finance Ltd.(warrants) (a) 200,000 104,668
Tat Lee Finance Ltd. 1,292,000 1,726,931
Tat Lee Finance Ltd. (warrants) (a) 494,023 269,022
Transmarco Ltd. (e) 1,513,000 14,766,195
Van Der Horst Ltd. 2,007,000 10,290,488
43,053,361
SOUTH AFRICA - 2.5%
AECI Ltd. 100,000 699,157
Amalgamated Banks of South Africa Ltd. 204,880 968,999
Anglo American Corp. of
South Africa (Reg.) 80,000 4,551,374
Anglo American Industrial Corp. Ltd. 30,000 1,513,469
Anglovaal Ltd. Class N (b) 72,600 2,756,898
Cashbuild Ltd. 10,000 15,080
De Beers Consolidated Mines Ltd. ADR 10,000 275,000
Nampak Ltd. (a) 20,000 102,817
Nedcor Ltd. 30,300 431,997
Nedcor Ltd. unit (a)(b) 85,000 4,887,500
Polifin Ltd. (a) 45,100 97,069
Power Technologies Ltd. 500,000 945,918
Sasol Ltd. 102,781 887,683
Smith (CG) Ltd. (a) 20,000 130,235
South African Brewers Ltd. 268,400 8,812,365
South African Brewers Ltd. Sponsored ADR 5,000 163,125
Southern Life Association Ltd., The 10,000 94,592
Standard Bank Investment Corp. 5,000 190,555
27,523,833
SRI LANKA - 0.4%
Aitken Spence & Co. Ltd. 95,000 369,744
Asia Capital Ltd. (a) 903,100 185,460
Blue Diamond Jewelry Worldwide Ltd. 572,282 218,257
Development Finance Corp. of Ceylon (a) 282,488 1,668,519
John Keells Holdings Ltd. 86,500 287,600
John Keells Holdings Ltd. GDR 77,500 503,750
Kelani Tyres Ltd. (Loc. Reg.) (a) 136,920 36,151
Lanka Ceramic Ltd. (a) 101,300 81,230
Lanka Tiles Ltd. 181,100 154,075
National Development Bank 196,600 845,922
Sampath Bank Ltd. 90,000 84,491
Vanik, Inc. Ltd. 48,000 26,286
Vanik, Inc. Ltd. (warrants) (a) 9,600 657
4,462,142
TAIWAN (FREE CHINA) - 0.3%
Advanced Semiconductor Engineering, Inc.
GDR (a)(b) 33,000 404,250
GVC Corp. GDR (a)(b) 27,239 231,532
Hocheng Corp. GDR (b) 634 5,231
Yageo Corp. GDR (a) 174,669 1,790,357
Yageo Corp. GDR (a)(b) 35,721 366,140
2,797,510
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
THAILAND - 17.2%
Ayudhya Insurance Co. 291,000 $ 2,012,080
Ayudhya Life Assurance Co. (For. Reg.) 7,500 34,274
Bangkok Bank Ltd. 1,986,800 20,527,240
Bangkok Expressway PCL (For. Reg.) (a) 4,317,900 6,992,029
Bangkok Insurance PCL (For. Reg.) 146,500 2,386,847
Bangkok Metropolitan Bank PCL:
(For. Reg.) 6,445,866 6,403,602
(Loc. Reg.) (a) 700,000 695,410
Bangkok Union Insurance Co. Ltd.
(For. Reg.) (a) 50,000 115,239
Berli Jucker PCL 55,000 124,578
Bumrungrad Hospital PCL (For. Reg.) (a) 50,000 85,436
Charan Insurance PCL (For. Reg.) 288,500 940,075
Christiani & Nielsen (For. Reg.) (a) 100,000 153,984
Deves Insurance Co., Ltd. 20,000 193,920
General Engineering Ltd. (a) 20,000 35,764
Industrial Finance Corp. (For. Reg.) 11,144,266 36,534,947
International Broadcasting Corp.
(For. Reg.) 20,000 42,122
Kiatnakin Finance & Securities PCL
(warrants) (a) 24,516 -
Krung Thai Bank (For. Reg.) 6,918,910 27,494,178
Nithipat Capital PCL 765,200 2,341,363
Nithipat Capital PCL (warrants) (a) 160,866 -
Pacific Insurance PCL 66 163
Phatra Insurance PCL (For. Reg.) 26,000 175,641
Property Perfect PCL (For. Reg.)
(warrants) (a) 4,444 8,123
Quality Houses Co. Ltd. (For. Reg.) 50,000 220,544
Raimon Land Co. Ltd. (For. Reg.) 900,000 2,020,664
SCF Finance and Securities
Co. Ltd. (rights) (a) 129,675 -
Safety Insurance PCL (For. Reg.) 363,200 534,012
Securities One PCL (warrants) (a) 36,483 -
Siam City Bank PCL (For. Reg.) 17,903,000 22,765,587
Siam City Credit Finance &
Securities Co. Ltd.:
PCL 67,100 287,971
(rights) (a) 102,977 -
Siam Commercial Life Assurance
(For. Reg.) (a) 215,100 307,713
Siam General Factoring PCL (For. Reg.) (a) 145,000 331,313
S Khon Kaen Food Industry PCL
(For. Reg.) 30,700 89,056
Somprasong Land and Development
PCL (For. Reg.) (a) 300,000 572,223
Swedish Motors Corp. PCL (For. Reg.) 228,400 1,016,523
Thai Farmers Bank PCL 2,907,100 24,028,484
Thai Military Bank Ltd. (For. Reg.) 6,606,680 25,990,913
Thai Reinsurance Co. Ltd. (For. Reg.) 170,000 587,721
Thai Wah Food Products PCL (For. Reg.) 270,375 244,428
Thai Wah Resorts Development PCL
(For. Reg.) 450,000 317,405
Tong Hua Daily News Co., Ltd.
(For. Reg.) 657,500 914,465
187,526,037
TURKEY - 0.1%
Akbank 500,000 131,517
Aksigoria (b) 230,875 31,039
Altinyildiz Mensucat Ve Konfeksiyon
Fabrikalari AS 540,000 152,560
Anadolu Anonim Turk Sigoria SK 400,000 32,343
Bossa Ticaret Ve Sanayi Isletmeleri (a)(b) 1,500,000 140,285

SHARES VALUE (NOTE 1)
Medya Holdings AS Class C 200,000 $ 6,430
Turkiye Garanti Bankasi AS 4,015,250 379,431
873,605
UNITED KINGDOM - 0.1%
Antofagasta Holdings PLC 280,000 1,349,747
UNITED STATES OF AMERICA - 0.1%
Capco Automotive Products Corp 158,600 1,209,325
VENEZUELA - 0.3%
CA Venepal GDR Class A ADR (a)(b) 2,864 5,728
Corimon SA CA sponsored ADR (a) 16,700 70,975
Electricidad de Caracas 2,382,228 2,041,489
Mavesa SA sponsored ADR (b) 272,650 1,057,852
Venezolana de Prerreducidos Caroni
Venpreca CA GDR (b) 1,500 8,070
3,184,114
TOTAL COMMON STOCKS
(Cost $1,071,604,856) 1,045,636,652
PREFERRED STOCKS - 0.5%
CONVERTIBLE PREFERRED STOCKS - 0.2%
MALAYSIA - 0.2%
Arab Malaysian Finance BHD unsecured
7 1/2%, 11/20/99 (For. Reg.) (a) 3,242,666 1,722,616
NONCONVERTIBLE PREFERRED STOCKS - 0.3%
BRAZIL - 0.2%
COSIPA (CIA Sidurg Paulista) Class B (a) 1,427,000 2,137,161
KOREA (SOUTH) - 0.1%
Hotel Shilla (a) 22,550 206,299
Hyundai Motor Service Co. Ltd. 42,860 1,296,303
Korea First Securities Co. Ltd. 2,060 22,211
Shinhan Investment & Finance Co. Ltd. 9,045 102,845
1,627,658
TOTAL NONCONVERTIBLE PREFERRED STOCKS 3,764,819
TOTAL PREFERRED STOCKS
(Cost $7,732,843) 5,487,435
CONVERTIBLE BONDS - 1.1%
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (C)
HONG KONG - 0.4%
Lai Fung Overseas Finance Ltd.
euro 5 1/2%, 2/5/98 (d) - $ 5,690,000 4,608,900
INDIA - 0.2%
Gujarat Ambuja Cement Ltd.:
3 1/2%, 6/30/99 (b) - 190,000 262,200
euro 3 1/2%, 6/30/99 - 1,150,000 1,587,000
1,849,200
MEXICO - 0.1%
Alfa SA de CV 8%, 9/15/00 (b) - 500,000 478,750
Grupo Financiero Invermexico
7 1/2%, 6/16/01 (b) - 1,000,000 280,000
758,750
CONVERTIBLE BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (C)
NETHERLANDS - 0.4%
Liblife International NV
euro 6 1/2%, 9/30/04 - $ 4,000,000 $ 4,490,000
TOTAL CONVERTIBLE BONDS
(Cost $12,856,988) 11,706,850
REPURCHASE AGREEMENTS - 2.5%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.88%, dated
10/31/95 due 11/1/95 $ 27,478,487 27,474,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $1,119,668,687) $ 1,090,304,937
LEGEND
1. Non-income producing
2. Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $37,115,233 or 3.4% of net
assets.
3. Principal amount is stated in United States dollars unless otherwise
noted.
4. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
5. A company in which the fund has ownership of at least 5% of the voting
securities is a affiliated company. A summary of the transactions during
the period in which the issuers were affiliates is a follows:
PURCHASES SALES DIVIDEND MARKET
AFFILIATE COST COST INCOME VALUE
Berjaya South Island BHD $ 1,630,448 $ 5,108,180 $ 38,646 $ -
China First Pencil Co. Ltd. Class B 33,190 - - 1,235,446
DG Kahn Cement Ltd. 157,813 - - 980,052
Guoco Holdings, Inc. Class B 1,293,908 - 30,253 6,522,693
Mondragon International
Philippines, Inc. - 784,688 - -
North Borneo Timber BHD - 6,814,756 - -
Shanghai Hero Ltd. Class B - - - 961,199
Shanghai Refrigerator
Compressor Co. Class B 46,354 - - 1,749,322
Shanghai Vacuum Electron
Devices Co. Ltd. 96,278 - - 1,483,574
Transmarco Ltd. 1,644,339 2,323,089 61,734 14,766,195
TOTALS $ 4,902,330 $ 15,030,713 $ 130,633 $ 27,698,481
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $1,047,699,607 and $1,532,101,039, respectively.
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 $86,207 for the period (see Note 4 of Notes to Financial
Statements).
The fund participated in the bank borrowing program. The maximum loan and
the average daily loan balances during the period for which loans were
outstanding amounted to $2,135,000. The weighted average interest rate was
6.4% (see Note 6 of Notes to Financial Statements).
INCOME TAX INFORMATION
At October 31, 1995, the aggregate cost of investment securities for income
tax purposes was $1,131,727,069. Net unrealized depreciation aggregated
$41,422,132, of which $137,337,459 related to appreciated investment
securities and $178,759,591 related to depreciated investment securities.
At October 31, 1995, the fund had a capital loss carryforward of
approximately $11,421,000 all of which will expire on September 30, 2002.
The fund has elected to defer to its fiscal year ending September 30, 1996
approximately $92,140,000 of losses recognized during the period October 1,
1994 to September 30, 1995.
For the period, interest and dividends from foreign countries were
$23,800,531 or $0.33 per share. Taxes accrued or paid to foreign countries
were $2,515,975 or $0.03 per share.
MARKET SECTOR DIVERSIFICATION (UNAUDITED)
As a Percentage of Total Value of Investments in Securities
Basic Industries 10.7
Conglomerates 1.9
Construction & Real Estate 11.7
Durables 3.0
Energy 0.9
Finance 36.9
Health 0.2
Holding Companies 4.7
Industrial Machinery & Equipment 1.3
Media & Leisure 1.8
Nondurables 7.0
Precious Metals 0.5
Repurchase Agreements 2.5
Retail & Wholesale 3.7
Services 0.3
Technology 2.2
Transportation 0.3
Utilities 10.4
100.0%
EMERGING MARKETS
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
OCTOBER 31, 1995

ASSETS

Investment in securities, at value (including repurchase agreements of $27,474,000) (cost $1,119,668,687) - $ 1,090,304,937
See accompanying schedule

Cash 627,673

Receivable for investments sold 15,107,525

Receivable for fund shares sold 711,653

Dividends receivable 1,576,051

Interest receivable 325,329

Redemption fees receivable 386

TOTAL ASSETS 1,108,653,554

LIABILITIES

Payable for investments purchased $ 4,815,614

Payable for fund shares redeemed 6,326,692

Accrued management fee 735,473

Other payables and accrued expenses 1,192,617

TOTAL LIABILITIES 13,070,396

NET ASSETS $ 1,095,583,158

Net Assets consist of:

Paid in capital $ 1,254,740,388

Undistributed net investment income 2,812,777

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions (132,540,126
)

Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies (29,429,881
)

NET ASSETS, for 72,342,948 shares outstanding $ 1,095,583,158

NET ASSET VALUE and redemption price per share ($1,095,583,158 (divided by) 72,342,948 shares) $15.14

Maximum offering price per share (100/97.00 of $15.14) $15.61

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED OCTOBER 31, 1995

INVESTMENT INCOME $ 22,189,600
Dividends (including $130,633 received from affiliated issuers)

Interest 4,228,474

26,418,074

Less foreign taxes withheld (2,515,975
)

TOTAL INCOME 23,902,099

EXPENSES

Management fee $ 10,483,318

Transfer agent

Fees 4,560,626

Redemption fees (67,140
)

Accounting fees and expenses 564,844

Non-interested trustees' compensation 12,712

Custodian fees and expenses 1,776,872

Registration fees 71,308

Audit 68,116

Legal 72,308

Interest 1,145

Miscellaneous 19,885

Total expenses before reductions 17,563,994

Expense reductions (2,769 17,561,225
)

NET INVESTMENT INCOME 6,340,874

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

Investment securities (including realized loss of $(302,572) on sales of investments in affiliated
issuers) (105,159,525
)

Foreign currency transactions (3,272,140 (108,431,665
) )

Change in net unrealized appreciation (depreciation) on:

Investment securities (290,773,855
)

Assets and liabilities in foreign 44,596 (290,729,259
currencies )

NET GAIN (LOSS) (399,160,924
)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ (392,820,050
)

OTHER INFORMATION $2,207,409
Sales charges paid to FDC

Accounting fees paid to FSC $560,714

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1995 1994

<TABLE>
<CAPTION>
<S> <C> <C>
Operations $ 6,340,874 $ 6,347,187
Net investment income

Net realized gain (loss) (108,431,665) (18,434,477)

Change in net unrealized appreciation (depreciation) (290,729,259) 152,006,813

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (392,820,050) 139,919,523

Distributions to shareholders (3,891,795) (2,588,073)
From net investment income

In excess of net investment income - (549,335)

TOTAL DISTRIBUTIONS (3,891,795) (3,137,408)

Share transactions 402,587,670 2,784,381,422
Net proceeds from sales of shares

Reinvestment of distributions 3,798,329 3,076,294

Cost of shares redeemed (892,234,446) (1,715,598,654)

Redemption fees 1,772,044 9,993,085

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS (484,076,403) 1,081,852,147

TOTAL INCREASE (DECREASE) IN NET ASSETS (880,788,248) 1,218,634,262

NET ASSETS

Beginning of period 1,976,371,406 757,737,144

End of period (including undistributed net investment income of $2,812,777 and $2,603,242,
respectively) $ 1,095,583,158 $ 1,976,371,406

OTHER INFORMATION
Shares

Sold 25,937,062 151,470,579

Issued in reinvestment of distributions 218,179 178,437

Redeemed (56,461,457) (95,823,026)

Net increase (decrease) (30,306,216) 55,825,990

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.

</TABLE>

FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED OCTOBER 31,

SELECTED PER-SHARE DATA 1995 1994 D 1993 1992 1991

</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 19.25 $ 16.18 $ 11.05 $ 10.40 $ 10.00

Income from Investment Operations

Net investment income .05 .06 .06 E .08 .12

Net realized and unrealized gain (loss) (4.13) 2.97 5.28 .76 .30

Total from investment operations (4.08) 3.03 5.34 .84 .42

Less Distributions (.04) (.04) (.08) (.08) (.04)
From net investment income

In excess of net investment income - (.01) - - -

From net realized gain - - (.15) (.14) -

Total distributions (.04) (.05) (.23) (.22) (.04)

Redemption fees added to paid in capital .01 .09 .02 .03 .02

Net asset value, end of period $ 15.14 $ 19.25 $ 16.18 $ 11.05 $ 10.40

TOTAL RETURN A, B (21.17)% 19.32% 49.58% 8.56% 4.41%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 1,095,583 $ 1,976,371 $ 757,737 $ 13,732 $ 6,450

Ratio of expenses to average net assets 1.28% 1.52% 1.91% 2.60% 2.60%
C C

Ratio of net investment income to average net assets .46% .39% .44% .90% 1.34%

Portfolio turnover rate 78% 107% 57% 159% 45%

A TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE.
B 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.)
C LIMITED IN ACCORDANCE WITH A STATE EXPENSE LIMITATION.
D EFFECTIVE NOVEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION
93-2, "DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION
OF INCOME,
CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT
COMPANIES." AS A RESULT, NET INVESTMENT INCOME PER SHARE MAY REFLECT
CERTAIN
RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
E NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OURTSTANDING DURING THE PERIOD.

</TABLE>

EUROPE
PERFORMANCE: THE BOTTOM LINE

EUROPE 12.76% 58.87% 167.67%

EUROPE (INCL. 3% SALES CHARGE) 9.37% 54.11% 159.64%

Morgan Stanley Europe Index 13.21% 66.07% 168.94%

Average European
Region Fund 9.33% 42.45% n/a

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 October 1, 1986. For example, if you invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment would
be $1,050. You can compare the fund's returns to the performance of the
Morgan Stanley Europe Index - a broad measure of the performance of stocks
in Europe, weighted by each country's market capitalization (or the total
value of its outstanding shares). To measure how the fund's performance
stacked up against its peers, you can compare it to the average European
region fund, which reflects the performance of 41 funds with similar
objectives tracked by Lipper Analytical Services over the past 12 months.
These benchmarks include reinvested dividends and capital gains, if any,
and exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED PAST 1 PAST 5 LIFE OF
OCTOBER 31, 1995 YEAR YEARS FUND

EUROPE 12.76% 9.70% 11.44%

EUROPE (INCL. 3% SALES CHARGE) 9.37% 9.03% 11.07%

Morgan Stanley Europe Index 13.21% 10.68% 11.51%

Average European Region Fund 9.33% 6.70% n/a

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
Europe (301) Europe Index
10/01/86 9700.00 10000.00
10/31/86 9690.30 10061.24
11/30/86 10078.30 10600.17
12/31/86 10485.70 10866.14
01/31/87 11563.06 11347.33
02/28/87 12300.92 11751.88
03/31/87 12922.28 12332.46
04/30/87 13456.26 12815.21
05/31/87 13679.56 12743.90
06/30/87 14232.95 13107.17
07/31/87 15252.37 13548.56
08/31/87 15572.75 13660.75
09/30/87 16135.86 13749.78
10/31/87 11737.82 11135.61
11/30/87 11213.55 10645.49
12/31/87 12048.50 11264.74
01/31/88 11475.68 10802.62
02/29/88 11533.94 11438.32
03/31/88 12067.91 11753.00
04/30/88 12407.72 11972.00
05/31/88 12271.80 11748.03
06/30/88 11999.95 11629.54
07/31/88 11873.74 11655.59
08/31/88 11252.38 11126.51
09/30/88 11776.65 11732.04
10/31/88 12582.47 12818.60
11/30/88 12737.81 12976.68
12/31/88 12751.82 13046.37
01/31/89 13357.16 13518.81
02/28/89 13386.93 13365.30
03/31/89 13615.17 13462.17
04/30/89 14200.67 13835.82
05/31/89 13813.65 13126.86
06/30/89 14190.74 13668.45
07/31/89 15460.96 15277.34
08/31/89 15341.88 15086.51
09/30/89 16036.53 15345.58
10/31/89 14925.09 14339.46
11/30/89 15798.36 15135.61
12/31/89 16874.83 16764.74
01/31/90 17085.64 16719.83
02/28/90 16643.94 16319.18
03/31/90 17145.87 16549.43
04/30/90 16804.56 16110.24
05/31/90 17838.53 17421.38
06/30/90 18581.38 18033.25
07/31/90 19705.70 18792.65
08/31/90 17356.68 16929.38
09/30/90 15640.08 14935.59
10/31/90 16342.78 16194.23
11/30/90 16322.71 16356.96
12/31/90 16100.10 16120.73
01/31/91 16418.61 16663.17
02/28/91 17415.23 18120.73
03/31/91 16480.26 16904.64
04/30/91 16439.16 16727.91
05/31/91 16511.08 17221.35
06/30/91 15062.38 15776.03
07/31/91 15822.69 16867.89
08/31/91 16141.20 17175.85
09/30/91 16726.84 17692.04
10/31/91 16367.24 17319.34
11/30/91 15874.06 16911.64
12/31/91 16769.89 18234.47
01/31/92 16844.23 18229.22
02/29/92 17046.02 18299.21
03/31/92 16461.89 17658.79
04/30/92 17545.19 18633.42
05/31/92 18405.46 19693.79
06/30/92 18235.53 19327.03
07/31/92 17577.05 18636.54
08/31/92 17630.16 18575.77
09/30/92 17354.02 18268.54
10/31/92 16058.31 16993.88
11/30/92 16047.69 16985.58
12/31/92 16346.71 17375.24
01/31/93 16260.10 17404.43
02/28/93 16357.53 17603.55
03/31/93 17429.27 18509.13
04/30/93 18003.03 18917.36
05/31/93 18219.54 19120.87
06/30/93 17710.74 18841.54
07/31/93 17721.56 18906.21
08/31/93 19161.37 20565.25
09/30/93 19139.72 20501.36
10/31/93 19951.64 21355.45
11/30/93 19561.92 20894.47
12/31/93 20787.26 22463.18
01/31/94 22287.59 23607.14
02/28/94 21765.73 22771.11
03/31/94 21156.90 22126.61
04/30/94 21765.73 23042.85
05/31/94 20928.59 22063.34
06/30/94 20678.54 21831.69
07/31/94 21624.40 22975.89
08/31/94 22309.33 23704.62
09/30/94 22004.92 22764.65
10/31/94 23026.89 23756.36
11/30/94 22168.00 22846.39
12/31/94 22087.73 22976.26
01/31/95 21612.84 22796.38
02/28/95 21999.37 23312.88
03/31/95 22529.48 24394.72
04/30/95 23291.51 25174.86
05/31/95 23755.35 25690.31
06/30/95 24429.02 25932.49
07/31/95 25522.37 27284.20
08/31/95 25036.44 26229.45
09/30/95 26140.82 27021.80
10/31/95 25964.12 26894.17

Let's say you invested $10,000 in Fidelity Europe Fund on October 1, 1986,
when the fund started, and paid the 3% sales charge. By October 31, 1995,
the value of your investment would have grown to $25,964 - a 159.64%
increase on your initial investment. That compares to $10,000 invested in
the Morgan Stanley Europe index, which would have grown to $26,894 over the
same period - a 168.94% increase.

An interview with Sally Walden, Portfolio Manager of Fidelity Europe Fund
Q. HOW HAS THE FUND PERFORMED, SALLY?
A. For the 12-month period ended October 31, 1995, the fund returned
12.76%, versus the Morgan Stanley Europe Index which returned 13.21%. The
fund outperformed the average European fund which achieved a return of
9.33% over the same period, according to Lipper Analytical Services. The
first six months of the period saw the fund underperform the index but the
second half saw strong outperformance.
Q. WHAT FACTORS INFLUENCED THE PERFORMANCE OF THE FUND RELATIVE TO THE
INDEX?
A. The fund's performance began to improve relative to the index during the
second six months of the period. Investor confidence improved and, in
general, small- and medium-sized companies began to outperform large
companies. Many of the largest holdings of small- and medium-sized
companies in the fund performed extremely well during this period. By
September, the U.K., German, Swiss and a number of the Scandinavian markets
were reaching all-time highs. Many investors also were focusing on "growth"
companies in which the fund concentrates as opposed to more economically
sensitive companies.
Q. WHAT FACTORS INFLUENCED EUROPEAN STOCK MARKETS DURING THE PAST 12
MONTHS?
A. One of the most surprising events during the year was the slowdown in
economic growth across much of Europe. Investors had expected growth to
pick up during the year but slower growth in the U.S., a stronger
deutschemark, the absence of any meaningful recovery in consumer demand in
Europe and a buildup of inventories contributed to a slowdown in growth.
This meant inflation expectations were revised downward in Europe. In
Germany, inflation fell to under 2% and remained generally low in other
countries - the exceptions being Italy and Spain. This enabled interest
rates to decline in many of the deutschemark bloc countries: Germany,
Austria, the Netherlands, Belgium and Switzerland. Bond yields also fell
against this background but also were influenced by the declines in U.S.
bond yields. Although lower growth resulted in downward revisions to profit
growth, lower returns on cash deposits and lower bond yields encouraged
many investors to increase their holdings in equities. Thus, we saw markets
start to improve from about April/May onward.
Q. WHICH PARTICULAR HOLDINGS HELPED THE FUND DO WELL?
A. Nokia, a Finnish cellular communications company, was the star performer
in the period - doubling in value over the year. Gehe, a German
pharmaceuticals company, saw strong profit growth and I believe management
has been successful in improving efficiency at recently acquired companies.
Other holdings that have done well include Skandia, a Swedish insurance
company; SGS Thomson, a semiconductor manufacturer; and Standard Chartered,
a bank with a strong presence in the Far East.
Q. WERE EUROPEAN CURRENCY MARKETS VOLATILE DURING THE PERIOD?
A. Yes. There seemed to be two sources of the volatility. One was a
consequence of a weaker dollar which disrupted foreign exchange rates in
Europe, and the other was the uncertainty surrounding the timing and
membership of a single European currency. Many German investors feared that
the deutschemark would lose value in the run up to a single currency and
have been shifting their cash into the Swiss franc. Some of this has found
its way into the German equity market and this is also one reason why the
Swiss market has been so strong this year. The French franc came under
pressure as investors in general believe France's economic policies are
deflationary and that eventually it will have to cut interest rates and go
for growth. The Italian lira suffered from political uncertainty and
although it did have a period of relative strength, the lira came under
renewed weakness after the German government implied Italy would not be in
a position to join the single currency in 1999. Finally, the Swedish krona
and Finnish markka actually strengthened against the deutschemark in the
latter part of the year after a period of weakness.
Q. WHAT NEW OPPORTUNITIES DID YOU FIND DURING THE PAST SIX MONTHS?
A. Shares were purchased in Hoganas, a Swedish company, which currently
dominates the market for powdered metal. Sales are growing at 20% per
annum. Bank of Ireland is benefiting from a strong Irish economy that is
generating good loan growth. The company is over-capitalized and could give
shareholders higher dividends. Cookson, a U.K. conglomerate that has a
couple of high margin businesses related to semiconductors, has been
showing good growth. Shares were purchased in Seita, a French tobacco
company that I believed was attractively valued relative to other tobacco
stocks worldwide.
Q. THE FUND ALSO HAD A LARGE EXPOSURE TO THE MEDIA SECTOR AND SOME
FINANCIAL STOCKS. WHY?
A. Media companies often have strong national or local franchises, tend to
generate cash and have good long term growth potential. Changes in
legislation surrounding media are also creating attractive investment
opportunities. There is less of a theme to holdings in the finance sector.
Many of the companies are attractive in their own right. Skandia offers a
highly efficient fund management administration system. Bank of Ireland is
selling on very attractive valuations.
Q. WHICH INVESTMENTS DIDN'T TURN OUT AS YOU WOULD HAVE LIKED?
A. Some of the finance stocks in France have not performed as expected.
Higher short-term interest rates, which have been needed to protect the
franc's rate against the deutschemark, and problems with bad loans in the
property market have had an adverse impact on the performance of BNP and
Credit Local de France. In the UK, WH Smith, a retailer of books,
newspapers and stationery, has been hit by increased competition and
profits were disappointing. Holdings in these companies have been sold or
reduced.
Q. WHAT IS YOUR CURRENT STRATEGY?
A. In terms of overall themes, media and telecommunications remain
significant. There are also a number of service sector growth companies
that I believe have strong market leadership in their chosen field.
Companies with strong consumer brands are also well represented in the
portfolio. Finally, the fund continues to be biased towards medium-sized
companies. Such companies tend to be under-researched and so can offer good
potential rewards.
Q. WHAT'S YOUR OUTLOOK GOING FORWARD?
A. Many economic indicators point to a slowdown in growth prospects over
the coming year. However, inflationary pressures remain muted which could
result in lower interest rates. The bond market should also remain
supportive of equities. Although profit growth is being revised downward,
the negative impact of this should be offset by lower interest rates. Share
valuations are reasonable. Companies that offer good "visibility" of
earnings are likely to be favored by investors.

FUND FACTS
GOAL: to increase the value of the fund's shares
by investing mainly in equity securities of
Western European issuers
START DATE: October 1, 1986
SIZE: as of October 31, 1995, more than
$492 million
MANAGER: Sally Walden, since July 1992; also
manages various funds for non-U.S. investors,
joined Fidelity in 1984
(checkmark)
SALLY WALDEN ON CURRENT TRENDS IN WESTERN EUROPEAN
COMPANIES:
"The financial position of many Western European
companies has improved since the end of the
recession in 1992/93. The growth experienced since
then, coupled with lower interest rates, has enabled
many companies to rebuild their balance sheets. Debt
levels have declined as has the cost of financing them.
Many companies have reduced their inventory levels
and cash has been accumulated. In the past, such
cash resources would be spent on new capital
equipment, but this is now more difficult to justify in a
period of slow economic growth. This raises the
question of what companies will do with their cash.
"In the past year we have seen many companies in
Anglo-Saxon countries use their cash resources to
buy back their own shares, which boosts earnings per
share, or grant special, one-time dividends to
shareholders. In some cases, cash has also been
used to acquire companies. However, we have yet to
see such activity in continental Europe. Up until now,
share buybacks or special dividends have been either
illegal or highly tax inefficient, but this could be
changing. Such changes could unlock value for
investors and drive up the share prices of such
companies. It would, therefore, be rewarding to know
where such changes are likely and which companies
would take advantage of the changes.
"Corporate and industrial structures can sometimes
make mergers and acquisitions difficult to achieve in
Europe. Some firms are majority owned by families
while others operate in very fragmented industries -
particularly in the consumer related sectors. However,
I expect that many of the families that own the small-
and medium- sized firms may divest their interest over
the coming years or become more shareholder
friendly. This could unlock value in these companies.
In addition, I believe consolidation within some
fragmented industries appears likely.
DISTRIBUTIONS
The Board of Trustees of Fidelity Europe Fund voted
to pay on December 11, 1995, to shareholders of
record at the opening of business on December 8,
1995, a distribution of $.81 derived from capital gains
realized from sales of portfolio securities and a
dividend of $.12 from net investment income.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER,
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
EUROPE
INVESTMENT CHANGES

GEOGRAPHIC DIVERSIFICATION
AS OF OCTOBER 31, 1995

United States 8.4%
Sweden 10.2%
Row: 1, Col: 1, Value: 8.300000000000001
Row: 1, Col: 2, Value: 30.2
Row: 1, Col: 3, Value: 5.7
Row: 1, Col: 4, Value: 4.4
Row: 1, Col: 5, Value: 8.300000000000001
Row: 1, Col: 6, Value: 3.4
Row: 1, Col: 7, Value: 6.2
Row: 1, Col: 8, Value: 9.800000000000001
Row: 1, Col: 9, Value: 8.300000000000001
Row: 1, Col: 10, Value: 3.8
Row: 1, Col: 11, Value: 10.2
Belgium 3.8%
United
Kingdom 30.2%
Netherlands 6.2%
France 9.7%
Germany 9.8%
Switzerland 5.7%
Italy 3.4%
Spain 4.4%
Other 8.2%
AS OF APRIL 30, 1995
United States 8.1%
Sweden 8.2%
Row: 1, Col: 1, Value: 8.1
Row: 1, Col: 2, Value: 28.4
Row: 1, Col: 3, Value: 6.9
Row: 1, Col: 4, Value: 4.4
Row: 1, Col: 5, Value: 5.3
Row: 1, Col: 6, Value: 3.5
Row: 1, Col: 7, Value: 5.4
Row: 1, Col: 8, Value: 11.6
Row: 1, Col: 9, Value: 3.4
Row: 1, Col: 10, Value: 5.2
Row: 1, Col: 11, Value: 9.6
Row: 1, Col: 12, Value: 8.199999999999999
France 9.6%
United
Kingdom 28.4%
Belgium 5.2%
Finland 3.4%
Germany 11.6%
Switzerland 6.9%
Netherlands 5.4%
Spain 4.4%
Other 5.3%
Italy 3.5%
ASSET ALLOCATION
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Stocks 92.9 92.9

Bonds 0.2 0.3

Short-term investments 6.9 6.8

TOP TEN STOCKS
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Nokia Corp. AB, Series K 1.8 2.0
(Finland, Communications Equipment)

Gehe AG 1.8 1.7
(Germany, Medical Equipment &
Supplies)

Skandia Foersaekrings AB 1.7 0.0
(Sweden, Insurance)

Kuoni Reisen Holding AG Class B (Reg.) 1.6 1.8
(Switzerland, Entertainment)

Television Francaise 1 SA 1.6 1.6
(France, Broadcasting)

International Cabletel, Inc. 1.5 1.3
(United States, Cellular)

Ericsson (L.M.) Telephone Co. Class B 1.3 1.0
(Sweden, Communications Equipment)

PolyGram NV Ord. 1.3 1.3
(Netherlands, Entertainment)

BIC 1.3 1.2
(France, Consumer Electronics)

Swiss Reinsurance Corp. (Reg.) 1.2 0.8
(Switzerland, Insurance)

TOP TEN MARKET SECTORS
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Finance 16.7 13.0

Media & Leisure 16.6 14.5

Health 9.8 10.6

Retail & Wholesale 7.6 8.0

Technology 6.8 6.3

Durables 6.6 7.4

Utilities 6.2 6.9

Services 4.3 2.4

Nondurables 4.2 5.8

Construction & Real Estate 3.9 4.5

EUROPE
INVESTMENTS OCTOBER 31, 1995

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 90.9%
SHARES VALUE (NOTE 1)
BELGIUM - 3.6%
Audiofina 9,766 $ 5,110,705
Colruyt SA 95 23,791
Generale de Banque SA 11,762 3,831,284
Immob de Belgique 6,225 432,202
Quick Restaurants SA 54,245 4,965,432
UCB Group 3,007 3,451,039
17,814,453
BERMUDA - 0.4%
Bona Shipholdings Ltd. (a) 203,570 2,092,760
DENMARK - 1.9%
Kobenhaven Lufthave AS 33,230 2,495,065
Teledanmark AS Class B 48,825 2,548,324
Unidanmark AS Class A 95,010 4,367,276
9,410,665
FINLAND - 2.2%
Nokia Corp. AB, Series K 153,920 8,995,336
WSOY (Werner Soderstrom) Class B 20,030 1,817,240
10,812,576
FRANCE - 9.7%
Axa SA 65,500 3,643,584
BIC 66,120 6,283,601
Canal Plus 34,400 5,953,507
Castorama Dubois 14,800 2,403,769
Christian Dior SA 26,000 2,556,068
Credit Local de France (b) 38,750 3,072,222
Ecco SA 17,453 2,709,549
Guilbert SA, Ste 27,400 3,294,173
Salomon SA Class A 5,584 3,227,455
Scor SA 40 1,194
Seita 73,200 2,548,694
Taittinger SA 3,660 1,326,820
Television Francaise 1 SA 77,720 8,038,628
Total SA Class B 50,328 3,115,027
48,174,291
GERMANY - 7.8%
Bayer AG 14,116 3,751,841
Gehe AG 18,241 8,947,951
Holsten Brauerei AG 4,865 1,070,635
Mannesmann AG Ord. 16,540 5,439,947
Otto Reichelt AG 150,800 2,676,321
Rhoen Klinikum AG 27,000 2,530,082
Rhoen Klinikum AG (rights) (a) 27,000 517,517
Schering AG 85,200 5,939,474
Tarkett AG (a) 25,000 596,316
Tarkett AG (a)(b) 38,000 906,400
Veba AG Ord. 120,610 4,948,037
Wella AG 2,700 1,493,132
38,817,653
IRELAND - 2.6%
Bank of Ireland U.S. Holdings, Inc. 380,000 2,534,490
CRH PLC 595,660 3,954,051
IWP International (U.K. Reg.) 367,530 2,439,701
Independent Newspapers PLC 655,000 3,928,688
12,856,930
ITALY - 3.4%
De Rigo Spa sponsored ADR 828 17,078
Industrie Natuzzi Spa ADR 139,500 5,580,000
Istituto Nazionale Delle Assicurazioni
Spa 1,284,930 1,689,285

SHARES VALUE (NOTE 1)
Mondadori Arnoldo Editore Spa 21,550 $ 159,805
Mondadori Arnoldo Editore Spa (b) 216,900 1,608,434
Telecom Italia Mobile Spa (a) 2,394,040 4,033,573
Telecom Italia Ord. 2,394,040 3,673,997
16,762,172
NETHERLANDS - 6.2%
Grolsche Bierbrouwerij NV 65,020 2,282,271
Heineken NV 26,962 4,783,222
Philips Electronics NV (Bearer) 99,700 3,853,323
PolyGram NV Ord. 102,390 6,390,049
SGS Thomson Microelectronics NV 83,090 3,837,541
Unilever NV ADR 28,900 3,785,900
VNU Ord. 41,430 5,806,447
30,738,753
NORWAY - 1.1%
Bergesen Group:
Class A 61,140 1,266,896
Class B 27,820 571,996
Bohler-Gruppen AS (a) 48,700 38,331
Fokus Bank AS (a) 331,700 1,758,268
Fokus Bank AS (a)(b) 35,000 185,527
Helikopter Services AS 130,495 1,634,987
5,456,005
SPAIN - 4.4%
Banco Popular Espanol 24,400 3,878,000
Centros Comerciales Continente SA 112,705 2,822,244
Corporacion Financiera Alba SA 47,970 2,654,078
Corporacion Mapfrecia International de
Reaseguros SA (Reg.) 78,070 3,999,488
EL Aguila SA (a) 151,693 1,092,936
Empresa Nacional De Electricidad
SA Ord. 48,660 2,421,034
FOCSA (Fomento Construcciones Y
Contratas SA) 37,935 2,680,325
Mapfre Vida SA 3,688 194,980
Vallehermoso SA 130,295 2,109,284
21,852,369
SWEDEN - 10.2%
Assa Abloy AB Class B (a) 309,650 2,055,209
Astra AB Class A Free shares 132,445 4,874,810
Autoliv AB 41,850 2,405,209
Ericsson (L.M.) Telephone Co. Class B 308,000 6,550,918
Forsheda AB B Free shares 107,200 1,956,647
Hennes & Mauritz AB B Free shares 39,000 2,553,211
Hoganas AB Class B Free shares 112,800 3,045,751
ICB Shipping Class B 351,160 2,913,400
Nordbanken AB (b) 29,500 436,094
Securitas B Free shares 152,500 5,912,012
Skandia Foersaekrings AB 323,113 8,212,713
Svenska Handelsbanken 135,000 2,372,422
TV 4 AB Class A 128,930 2,820,034
Volvo AB Class B 205,320 4,630,254
50,738,684
SWITZERLAND - 5.7%
Ares Serono Class B (Bearer) 8,740 5,729,256
BBC Brown Boveri & Cie (Bearer) 4,840 5,608,693
Baloise Holding (Reg.) 1,575 3,228,993
Kuoni Reisen Holding AG Class B (Reg.) 5,056 8,052,231
Swiss Reinsurance Corp. (Reg.) 5,453 5,959,196
28,578,369
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
UNITED KINGDOM - 30.2%
Abbey National PLC Ord. 406,470 $ 3,440,190
Angerstein Underwriting Trust PLC 1,356,770 1,897,772
Asda Group PLC 3,072,000 4,976,678
Associated British Ports PLC Ord. 706,550 3,405,942
BAA PLC Ord. 305,734 2,377,406
Barclays PLC Ord. 391,370 4,592,810
Boots Co. PLC (The) 578,630 5,116,766
CLM Insurance Fund PLC 1,219,500 1,792,500
Cadbury-Schweppes PLC Ord. 487,646 4,027,036
Chubb Security PLC 529,620 2,783,239
Comcast UK Cable Partners PLC Class A (a) 132,900 1,711,088
Compass Group PLC Ord. 611,077 4,152,971
Cookson Group 548,000 2,537,714
De la Rue PLC 166,943 2,378,639
Electrocomponents PLC 656,320 3,360,897
Flextech PLC (a) 727,580 5,485,215
H.T.V. Group Ord. 15,200 61,981
London Insurance Market Investment
Trust PLC 3,189,770 5,243,089
MAI PLC 614,960 3,192,837
MFI Furniture Group PLC 1,007,307 2,244,789
Mirror Group Newspaper PLC 2,041,140 5,371,326
Next PLC 400,000 2,588,859
Nynex CableComms Group ADR Units (a) 110,000 2,227,500
Prudential Corp. PLC 864,470 5,403,696
Reuters Holdings PLC Ord. 556,180 5,168,770
Royal Bank of Scotland Group PLC Ord. 528,160 4,278,129
Scottish Television PLC 624,130 4,902,594
Smith & Nephew PLC 829,590 2,546,942
Smithkline Beecham Ord. Units 426,260 4,365,601
Smiths Industries PLC Ord. 259,970 2,383,119
Standard Chartered Bank PLC 514,860 4,223,291
Storehouse PLC 773,000 3,665,180
Takare PLC Ord. 1,199,600 3,886,734
Telewest Communications PLC (a) 716,750 2,005,097
Tesco PLC Ord. 1,018,620 4,829,787
Ulster Television PLC Ord. 234,020 3,524,848
Unitech PLC 337,000 2,809,615
Vendome Luxury Group PLC SA 440,000 3,890,875
Vodafone Group PLC 1,333,825 5,512,709
Westminster Health Care Holdings PLC 448,870 2,337,602
Wickes PLC 1,433,850 2,821,419
Wolseley Ord. 533,250 3,303,782
Zeneca Group PLC Ord. 177,480 3,305,776
150,132,810
UNITED STATES OF AMERICA - 1.5%
International Cabletel, Inc. (a) 276,800 7,335,200
TOTAL COMMON STOCKS
(Cost $341,676,487) 451,573,690
NONCONVERTIBLE PREFERRED STOCKS - 2.0%
GERMANY - 2.0%
Boss (Hugo) AG 4,850 4,045,540
Hornbach AG 3,030 3,043,659
Moebel Walther AG 5,825 2,563,802
Porsche AG (RFD) (a) 1,117 507,493
TOTAL NONCONVERTIBLE PREFERRED STOCKS
(Cost $7,662,857) 10,160,494
CONVERTIBLE BONDS - 0.2%
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (C)
BELGIUM - 0.2%
Audiofina 5% 12/31/96 - BEF 26,010,000 $ 893,161
NORWAY - 0.0%
Color Lines 7 1/2%,
12/31/00 - NOK 2,299 347,130
TOTAL CONVERTIBLE BONDS
(Cost $1,094,316) 1,240,291
REPURCHASE AGREEMENTS - 6.9%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.88%, dated
10/31/95 due 11/1/95 $ 34,061,562 34,056,000
TOTAL INVESTMENT IN SECURITIES - 100%
Cost $384,489,660) $497,030,475
CURRENCY ABBREVIATIONS
BEF - Belgian franc
NOK - Norwegian krone
LEGEND
1. Non-income producing
2. 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 $6,208,677 or 1.3% of net
assets.
3. Principal amount is stated in United States dollars unless otherwise
noted.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $173,345,959 and $240,812,591, respectively.
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 $3,526 for the period (see Note 4 of Notes to Financial
Statements).
The fund participated in the bank borrowing program. The maximum loan and
the average daily loan balances during the period for which loans were
outstanding amounted to $2,235,000 and $1,401,333, respectively. The
weighted average interest rate was 5.9% (see Note 6 of Notes to Financial
Statements).
INCOME TAX INFORMATION
At October 31, 1995, the aggregate cost of investment securities for income
tax purposes was $385,127,747. Net unrealized appreciation aggregated
$111,902,728, of which $123,586,564 related to appreciated investment
securities and $11,683,836 related to depreciated investment securities.
The fund hereby designates $10,365,838 as a capital gain dividend for the
purpose of the dividend paid deduction.
For the period, interest and dividends from foreign countries were
$10,719,025 or $0.51 per share. Taxes accrued or paid to foreign countries
were $1,237,772 or $0.06 per share.
MARKET SECTOR DIVERSIFICATION (UNAUDITED)
As a Percentage of Total Value of Investments in Securities
Aerospace & Defense 0.5%
Basic Industries 2.7
Construction & Real Estate 3.9
Durables 6.6
Energy 0.6
Finance 16.7
Health 9.8
Holding Companies 0.8
Industrial Machinery & Equipment 2.4
Media & Leisure 16.6
Nondurables 4.2
Repurchase Agreements 6.8
Retail & Wholesale 7.6
Services 4.3
Technology 6.8
Transportation 3.5
Utilities 6.2
100.0%
EUROPE
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
OCTOBER 31, 1995

ASSETS

Investment in securities, at value (including repurchase agreements of $34,056,000) (cost $384,489,660) - $ 497,030,475
See accompanying schedule

Cash 547

Receivable for investments sold 828,249

Receivable for fund shares sold 633,612

Dividends receivable 1,533,585

Interest receivable 37,458

Redemption fees receivable 82

TOTAL ASSETS 500,064,008

LIABILITIES

Payable for investments purchased $ 3,924,708

Payable for fund shares redeemed 2,645,421

Accrued management fee 347,234

Other payables and accrued expenses 279,284

TOTAL LIABILITIES 7,196,647

NET ASSETS $ 492,867,361

Net Assets consist of:

Paid in capital $ 351,304,467

Undistributed net investment income 3,463,355

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions 25,555,140

Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies 112,544,399

NET ASSETS, for 20,964,906 shares outstanding $ 492,867,361

NET ASSET VALUE and redemption price per share ($492,867,361 (divided by) 20,964,906 shares) $23.51

Maximum offering price per share (100/97.00 of $23.51) $24.24

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED OCTOBER 31, 1995

INVESTMENT INCOME $ 10,651,950
Dividends

Interest 1,451,020

12,102,970

Less foreign taxes withheld (1,237,772
)

TOTAL INCOME 10,865,198

EXPENSES

Management fee $ 3,621,828
Basic fee

Performance adjustment 145,908

Transfer agent 1,618,602
Fees

Redemption fees (914
)

Accounting fees and expenses 285,300

Non-interested trustees' compensation 10,267

Custodian fees and expenses 246,489

Registration fees 43,929

Audit 47,494

Legal 22,413

Interest 691

Miscellaneous 3,862

Total expenses before reductions 6,045,869

Expense reductions (475,027 5,570,842
)

NET INVESTMENT INCOME 5,294,356

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

Investment securities 26,560,699

Foreign currency transactions (32,975 26,527,724
)

Change in net unrealized appreciation (depreciation) on:

Investment securities 24,445,008

Assets and liabilities in foreign currencies (19,343 24,425,665
)

NET GAIN (LOSS) 50,953,389

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 56,247,745

OTHER INFORMATION $389,484
Sales charges paid to FDC

Deferred sales charges withheld $66,854
by FDC

Accounting fees paid to FSC $283,887

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1995 1994

<TABLE>
<CAPTION>
<S> <C> <C>
Operations $ 5,294,356 $ 4,182,034
Net investment income

Net realized gain (loss) 26,527,724 51,768,128

Change in net unrealized appreciation (depreciation) 24,425,665 11,323,676

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 56,247,745 67,273,838

Distributions to shareholders (4,575,941) (2,098,083)
From net investment income

From net realized gain (2,516,901) -

TOTAL DISTRIBUTIONS (7,092,842) (2,098,083)

Share transactions 382,348,507 549,191,101
Net proceeds from sales of shares

Reinvestment of distributions 6,951,448 2,047,747

Cost of shares redeemed (453,061,566) (637,883,238)

Redemption fees 13,949 -

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS (63,747,662) (86,644,390)

TOTAL INCREASE (DECREASE) IN NET ASSETS (14,592,759) (21,468,635)

NET ASSETS

Beginning of period 507,460,120 528,928,755

End of period (including undistributed net investment income of $3,463,355 and $2,640,665,
respectively) $ 492,867,361 $ 507,460,120

OTHER INFORMATION
Shares

Sold 18,216,804 27,996,564

Issued in reinvestment of distributions 354,493 109,623

Redeemed (21,565,625) (32,845,483)

Net increase (decrease) (2,994,328) (4,739,296)

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED OCTOBER 31,

SELECTED PER-SHARE DATA 1995 1994 B 1993 1992 F 1991

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 21.18 $ 18.43 $ 15.12 $ 15.93 $ 16.28

Income from Investment Operations

Net investment income .27 .18 .25 .27 .43 E

Net realized and unrealized gain (loss) 2.37 2.65 3.35 (.57) (.40)

Total from investment operations 2.64 2.83 3.60 (.30) .03

Less Distributions (.20) (.08) (.29) (.48) (.35)
From net investment income

From net realized gain (.11) - - (.03) D (.03) D

Total distributions (.31) (.08) (.29) (.51) (.38)

Redemption fees added to paid in capital .00 - - - -

Net asset value, end of period $ 23.51 $ 21.18 $ 18.43 $ 15.12 $ 15.93

TOTAL RETURN A, C 12.76% 15.41% 24.24% (1.89)% .15%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 492,867 $ 507,460 $ 528,929 $ 431,223 $ 297,831

Ratio of expenses to average net assets 1.18% 1.35% 1.25% 1.22% 1.31%
G

Ratio of net investment income to average net assets 1.12% .85% 1.44% 2.38% 2.83%

Portfolio turnover rate 38% 49% 76% 95% 80%

A TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE.
B EFFECTIVE NOVEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION
93-2, "DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION
OF INCOME,
CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT
COMPANIES." AS A RESULT, NET INVESTMENT INCOME PER SHARE MAY REFLECT
CERTAIN
RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
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 AMOUNTS DISTRIBUTED FROM NET REALIZED GAINS ON FOREIGN
CURRENCY RELATED TRANSACTIONS TAXABLE AS ORDINARY INCOME.
E INCLUDES $.05 PER SHARE FROM RECOVERY OF FOREIGN TAXES PREVIOUSLY
WITHHELD ON DIVIDEND AND INTEREST PAYMENTS.
F AS OF NOVEMBER 1, 1991 THE FUND DISCONTINUED THE USE OF EQUALIZATION
ACCOUNTING.
G FMR VOLUNTARILY AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES
DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE
RATIO WOULD HAVE BEEN
HIGHER.

</TABLE>

EUROPE CAPITAL APPRECIATION
PERFORMANCE: THE BOTTOM LINE

EUROPE CAPITAL APPRECIATION 6.43% 20.80%

EUROPE CAPITAL APPRECIATION (INCL. 3% SALES CHARGE)
3.24% 17.18%

Morgan Stanley Europe Index 13.21% 21.31%

Average European Region Fund 9.33% n/a

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
December 21, 1993. For example, if you invested $1,000 in a fund that had a
5% return over the past year, the value of your investment would be $1,050.
You can compare the fund's returns to the performance of the Morgan Stanley
Europe Index - a broad measure of the performance of stocks in Europe,
weighted by each country's market capitalization (or the total value of its
outstanding shares). To measure how the fund's performance stacked up
against its peers, you can compare it to the average European region fund,
which reflects the performance of 41 funds with similar objectives tracked
by Lipper Analytical Services over the past 12 months. These benchmarks
include reinvested dividends and capital gains, if any, and exclude the
effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED PAST 1 LIFE OF
OCTOBER 31, 1995 YEAR FUND

EUROPE CAPITAL APPRECIATION 6.43% 10.68%

EUROPE CAPITAL APPRECIATION
(INCL. 3% SALES CHARGE) 3.24% 8.88%

Morgan Stanley Europe Index 13.21% 10.93%

Average European Region Fund 9.33% n/a

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
Fidelity Europe Europe Index
12/21/93 9700.00 10000.00
12/31/93 9729.10 10132.25
01/31/94 11145.30 10648.25
02/28/94 10670.00 10271.15
03/31/94 10786.40 9980.44
04/30/94 11242.30 10393.72
05/31/94 10825.20 9951.90
06/30/94 10602.10 9847.41
07/31/94 11145.30 10363.51
08/31/94 11339.30 10692.22
09/30/94 10941.60 10268.23
10/31/94 11009.50 10715.55
11/30/94 10534.20 10305.10
12/31/94 10398.40 10363.68
01/31/95 10272.30 10282.54
02/28/95 10563.30 10515.52
03/31/95 10786.40 11003.49
04/30/95 11300.50 11355.38
05/31/95 11475.10 11587.88
06/30/95 11640.00 11697.12
07/31/95 12241.40 12306.82
08/31/95 11737.00 11831.07
09/30/95 12086.20 12188.47
10/31/95 11717.60 12130.90

Let's say you invested $10,000 in Fidelity Europe Capital Appreciation Fund
on December 21, 1993, when the fund started and paid the 3% sales charge.
By October 31, 1995, the value of your investment would have grown to
$11,718 - a 17.18% increase on your initial investment. That compares to
$10,000 invested in the Morgan Stanley Europe index, which would have grown
to $12,131 over the same period - a 21.31% increase.

An interview with Kevin McCarey, Portfolio Manager of Fidelity Europe
Capital Appreciation Fund
Q. KEVIN, HOW DID THE FUND PERFORM?
A. For the 12 months ended October 31, 1995, the fund returned 6.43%. That
trailed the Morgan Stanley Europe index, which returned 13.21%, and the
average European region fund which returned 9.33% for the same time period,
according to Lipper Analytical Services.
Q. WHY DID THE FUND UNDERPERFORM?
A. For most of the year, I've been slowly switching the fund from
emphasizing small- and mid-cap value names to focusing on larger "blue
chip" stocks that I believe are still reasonably priced. During the period,
however, being underweighted in large-cap growth names hurt the fund since
those were the kinds of stocks that outperformed. Another reason for
underperformance was the fact that many mid-cap stocks with somewhat
disappointing earnings were excessively punished by the drop in their stock
price. For example, Hornbach Baumarkt, a German home repair chain, dropped
significantly even though the earnings weren't too bad. Finally, the fund
was overweighted in French stocks, which performed quite poorly during the
period.
Q. WHY DID YOU CHOOSE TO OVERWEIGHT THE FUND IN FRENCH STOCKS?
A. France had underperformed Europe for the year-and-a-half leading up to
the spring of 1995. I believed the election of a pro-business conservative
leadership during the period would have been a more neutral, if not a
positive, backdrop. For both of those reasons, I began adding to the fund's
French holdings. The strategy worked for about a month, but France has
continued to underperform Europe during the past six months. One of the
reasons is that many investors have been very skeptical of the political
process in France and its ability to cut the budget deficit. Because of
this uncertainty, the French franc has been somewhat weakened and the
country has chosen to keep short-term interest rates higher than they
otherwise might be. This has led to pressure on the stock market and a
weaker-than-expected economy.
Q. WHAT CHANGES IN STRATEGY HAVE YOU MADE WITH RESPECT TO THE FRENCH
HOLDINGS?
A. Though I've trimmed back holdings in certain French securities -
especially in economically sensitive or cyclical stocks - I am currently
overweighted versus the Morgan Stanley Europe Index. I still think many of
the stocks in France are well positioned even though some of them haven't
performed well lately. Total SA is one of the fund's largest holdings.
Because it's one of the 10 largest oil companies in the world, one wouldn't
expect Total to be captive to the whims of the French stock market.
However, since it's such a big part of the local index, it seems to move up
and down with the market. During the past six months, Total has signed a
contract with Iran to help its development efforts, a project which could
be a positive for the company. In addition, it has one of the fastest
rising production profiles of all multi-national oil companies, due largely
to recent discoveries in Colombia and Southeast Asia. I also think it's one
of the best managed oil companies. My interest in the stock, however, is
based on the company's attractive outlook, and has little to do with the
fact it happens to be located in France.
Q. WHAT OTHER STRATEGIC CHANGES HAVE YOU MADE TO THE FUND?
A. A year ago I trimmed the fund's exposure to cyclicals and began to buy
pharmaceuticals, which are now about 8% of investments. As of October 31,
Roche Holdings was the fund's largest holding. I think it's one of the
fastest-growing pharmaceutical companies. If the relative price movement of
a pharmaceutical is determined by its drug pipeline, Roche certainly has
one of the most interesting pipelines in the business. SmithKline Beecham,
a drug company in the U.K., is new to the fund's top 10 holdings. Both
SmithKline and Roche benefited from cost-cutting associated with
acquisitions made last year.
Q. WHAT ABOUT SOME OF THE FUND'S OTHER TOP 10 HOLDINGS . . .
A. I've increased the fund's position in Svedala, a Swedish mining and
construction equipment company. It derives about one-third of its revenues
from serving emerging markets that are spending on capital equipment in
order to develop their economies. I view the stock as generally inexpensive
in light of its recent pricing and productivity improvements. New to the
fund's top 10 is English brewer Guinness. Unlike many of the blue chip
growth stocks, Guinness has underperformed the market in the past 18 to 24
months. I think it's a growth-oriented, resilient business that is both
generating cash flow and is reasonably priced - just the kind of stock I'm
looking for. Finally, Brown, Boveri & Cie (BBC) is a Swiss engineering
company that makes train locomotives and power generators. The company is
generating reasonable growth and is seeing good volume. BBC is also
attractive to me because it's selling to the emerging markets and is still
reasonably priced.
Q. WHAT'S AHEAD FOR THE FUND IN THE NEXT SIX MONTHS?
A. The fund is still overweighted in France relative to its index and I
think a lot of the fund's holdings are well positioned there. Because of
economic and currency swings, currency selection was a negative in the most
recent period. However, stock selection during the past six months proved
neutral as some good stock picks offset the underweighting in blue-chip
growth companies. Over the next six months, I believe that investors will
be less focused on the biggest growth companies. The fund's holdings of
several medium cap companies that have focused managements should once
again help the fund's performance.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER,
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.

FUND FACTS
GOAL: long-term growth of capital by investing
mainly in equity securities of Eastern and
Western European issuers
START DATE: December 21, 1993
SIZE: as of October 31, 1995, more than
$194 million
MANAGER: Kevin McCarey, since 1993;
manager, Plymouth Europe Fund (now Fidelity
Advisor Overseas Fund), 1992-1993; Fidelity
Select Regional Banks Portfolio, 1986-1989;
joined Fidelity in 1985
(checkmark)
KEVIN MCCAREY ON COMPANIES WITH EXPOSURE TO THE
EMERGING MARKETS:
"With the economic slowdown in the U.S. and in
Europe, and the fact that the Japanese economy
hasn't picked up, one of the main areas in which a
company can achieve higher volumes and consistent
sales growth is in those parts of the world that are still
growing the quickest, the emerging markets.
Companies that are actively supplying the emerging
markets are attractive since these economies have
not matured and there's still plenty of opportunity.
"The emerging markets of Latin America, Southeast
Asia and Eastern Europe are still currently the
fastest-growing parts of the world. The fund owns a
number of stocks that are significant exporters to
these regions and/or have local operations there.
There are basically two kinds of trends to look for in
picking stocks that benefit from growth in emerging
markets.
"As salaries rise in these regions, the consumer
demand for `western' products is increasing. The fund
owns positions in Volkswagen, Guinness, LVMH,
Hellenic Bottling, Michelin and Benetton, all of which
are major exporters to the emerging regions.
"Another on-going theme is that as these economies
are developing they are buying capital equipment to
build up their infrastructure - roads, bridges and
telephones. Companies that appear in this segment
of the market include Ericsson, Brown Boveri,
Vodafone, Svedala, Atlas Copco and Valmet.
"Finally, though the activity in the emerging markets of
Eastern Europe is exciting, I don't have much
exposure there because I believe the local stock
markets in those countries are depressed. I also think
that due to recent privatizations and increased
efficiency, there is more supply of stock than demand,
which does not make for inviting investment
prospects."
EUROPE CAPITAL APPRECIATION
INVESTMENT CHANGES

GEOGRAPHIC DIVERSIFICATION
AS OF OCTOBER 31, 1995

Finland 5.3%
Ireland 3.5%
Row: 1, Col: 1, Value: 5.3
Row: 1, Col: 2, Value: 22.6
Row: 1, Col: 3, Value: 10.8
Row: 1, Col: 4, Value: 11.7
Row: 1, Col: 5, Value: 8.800000000000001
Row: 1, Col: 6, Value: 8.6
Row: 1, Col: 7, Value: 6.5
Row: 1, Col: 8, Value: 4.5
Row: 1, Col: 9, Value: 17.7
Row: 1, Col: 10, Value: 3.5
United
Kingdom 22.6%
France 17.7%
Germany 4.5%
Italy 6.5%
Switzerland 10.8%
Netherlands 8.6%
Sweden 11.7
%
Other 8.8%
AS OF APRIL 30, 1995

Norway 3.3%
Row: 1, Col: 1, Value: 3.3
Row: 1, Col: 2, Value: 15.9
Row: 1, Col: 3, Value: 6.6
Row: 1, Col: 4, Value: 15.6
Row: 1, Col: 5, Value: 5.7
Row: 1, Col: 6, Value: 15.6
Row: 1, Col: 7, Value: 6.9
Row: 1, Col: 8, Value: 8.199999999999999
Row: 1, Col: 9, Value: 6.5
Row: 1, Col: 10, Value: 15.7
France 15.7%
United
Kingdom 15.9%
Germany 6.5%
Switzerland 6.6%
Italy 8.2%
Sweden 15.6
%
Netherlands 6.9%
Spain 5.7%
Other 15.6
%
ASSET ALLOCATION
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Stocks 97.3 95.9

Bonds 1.9 0.0

Short-term investments 0.8 4.1

TOP TEN STOCKS
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Roche Holdings AG (part. certs.) 4.6 2.3
(Switzerland, Drugs & Pharmaceuticals)

Total SA Class B 2.9 2.0
(France, Oil & Gas)

Svedala Industri 2.8 2.2
(Sweden, Industrial Machinery &
Equipment)

C.S. Holdings (Reg.) 2.6 0.0
(Switzerland, Banks)

Guinness PLC Ord. 2.2 0.0
(United Kingdom, Beverages)

SmithKline Beecham PLC Class A 1.9 0.0
(United Kingdom, Drug & Pharmaceutical)

BBC Brown Boveri & Cie (Bearer) 1.8 0.0
(Switzerland, Electrical Equipment)

Valmet OY Class A 1.8 1.2
(Finland, Industrial Machinery &
Equipment)

KLM Royal Dutch Airlines Ord. 1.8 0.0
(Netherlands, Air Transportation)

Vodafone Group PLC 1.7 2.3
(United Kingdom, Cellular)

TOP TEN MARKET SECTORS
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Finance 18.9 19.7

Industrial Machinery & Equipment 13.2 6.9

Nondurables 9.3 3.0

Health 8.0 6.2

Construction & Real Estate 6.8 3.4

Media & Leisure 6.0 3.0

Basic Industries 6.0 9.3

Durables 5.9 9.8

Retail & Wholesale 5.9 9.9

Energy 5.1 11.9

EUROPE CAPITAL APPRECIATION
INVESTMENTS OCTOBER 31, 1995

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 97.3%
SHARES VALUE (NOTE 1)
AUSTRIA - 0.1%
Hemingway Holdings AG (a) 3,500 $ 91,794
DENMARK - 0.4%
Unidanmark AS Class A 16,700 767,640
FINLAND - 5.3%
America Group Ltd. Class A 38,000 601,760
Fiskars OY, Series A 7,100 359,722
Huhtamaki Ord. 102,000 3,028,596
Kemira OY 252,200 2,121,700
Nokia Corp. AB, Series A 9,000 515,370
Valmet OY Class A 123,000 3,420,250
10,047,398
FRANCE - 17.7%
Alcatel Alsthom CGE 33,000 2,822,488
BIS SA Ord. (a) 30,500 2,861,034
Canal Plus 17,500 3,028,674
Club Mediterranee SA:
Ord. 21,000 1,649,462
(rights) (a) 21,000 20,731
Credit Commercial de France Ord. 51,000 2,538,249
Ecco SA 17,000 2,639,222
Elf Sanofi SA 6,930 442,697
Eramet SA 21,400 1,446,398
LVMH 14,300 2,849,749
Michelin SA Cie Generale des
Etablissements Class B 75,000 3,033,794
Pechiney International SA 5,096 266,151
Simco
(Reg.) 16,000 1,294,419
(Reg) (New) (a) 452 36,567
Skis Rossignol SA 7,900 2,109,903
Total SA Class B 90,000 5,570,507
Vallourec SA (a) 30,000 1,179,109
33,789,154
GERMANY - 4.5%
Asko 1,500 778,405
Bayer AG 9,200 2,445,235
Gildemeister AG (a) 12,600 1,426,685
Hornbach Baumarkt AG (Bearer) 19,000 957,654
Karstadt AG 1,800 784,581
Praktiker Bau und Heim AG (a)(b) 10,500 331,701
Volkswagen AG 6,000 1,889,043
8,613,304
GREECE - 2.7%
Alpha Credit Bank 43,000 2,584,781
Ergo Bank SA (Reg.) 20,000 861,809
Hellenic Bottling Co. SA 51,000 1,626,234
5,072,824
HONG KONG - 0.7%
HSBC Holdings Ord. 94,000 1,398,015
IRELAND - 3.5%
Anglo Irish Bank 3,000,000 3,034,560
Bank of Ireland U.S. Holdings, Inc. 340,000 2,267,701
Jurys Hotel Group PLC (U.K. Reg.) 420,000 1,327,620
6,629,881
ITALY - 6.5%
Banca Fideuram Spa 800,000 854,674
Benetton Group Spa (a) 149,600 1,550,576
Credito Italiano Ord. 1,850,000 2,107,809

SHARES VALUE (NOTE 1)
Italcementi Fabbriche Ruinite Cemento
Spa, Bergamo 101,000 $ 625,645
Italgas Spa 393,000 1,045,695
SAI (Sta Assieuratrice Industriale) Spa 175,000 1,783,488
Stet (Societa Finanziaria Telefonica) Spa
Ord. 617,700 1,749,552
Telecom Italia Mobile Spa (a) 1,644,600 2,770,887
12,488,326
LIECHTENSTEIN - 0.6%
Bil GT Gruppe AG (part. certs.) 2,000 1,228,333
NETHERLANDS - 8.6%
Amev NV CVA 18,700 1,174,156
BAM Groep NV 26,800 1,596,148
International Nederlanden Groep NV 51,336 3,060,709
KLM Royal Dutch Airlines Ord. 102,131 3,371,365
Macintosh Confectie NV 50,000 1,457,264
Philips Electronics NV 75,000 2,896,875
SGS-Thomson Microelectronics NV (a) 10,000 452,500
Samas-Groep NV 53,268 2,328,766
16,337,783
NORWAY - 0.8%
Tomra Systems AS 230,000 1,451,932
POLAND - 0.3%
Zaklady Piwowarskie W Zywcu SA 7,000 556,461
SPAIN - 2.4%
Banco Bilbao Vizcaya SA Ord. (Reg.) 26,000 794,918
Banco de Santander SA Ord. (Reg.) 68,800 3,000,131
Corporacion Mapfrecia International de
Reaseguros SA (Reg.) 5,792 296,721
Uralita SA 54,200 546,443
4,638,213
SWEDEN - 9.8%
Atlas Copco AB Class A Free shares 187,100 2,836,431
Esselte AB Class B Free shares 61,400 903,037
Euroc AB, Series A 112,000 2,787,625
Mo Och Domsjoe (Modo) AB Class B 33,000 1,682,531
Nordbanken AB (b) 13,000 192,177
SKF AB Ord. 65,000 1,235,425
Securitas B Free shares 30,900 1,197,909
Stora Kopparbergs Bergslags AB
Class A Free shares 142,500 1,730,386
Svedala Industri 212,700 5,406,295
Trygg Hansa B Free shares (a) 56,000 802,498
18,774,314
SWITZERLAND - 10.8%
BBC Brown Boveri & Cie (Bearer) 3,000 3,476,463
C. S. Holdings (Reg.) 48,000 4,899,252
Logitech International SA (Reg.) (a) 300 32,996
Roche Holdings AG (part. certs.) 1,200 8,710,955
Sabdoz AG (Reg.) 3,000 2,473,383
Zurich Versicherungs AG (Reg.) (a) 3,800 1,086,670
20,679,719
UNITED KINGDOM - 22.6%
Barratt Developments PLC 900,000 2,759,553
Bass PLC Ord. 128,200 1,343,371
Berkeley Group PLC 425,000 2,723,794
British Land Ord. 142,200 815,832
British Petroleum PLC ADR 25,000 2,206,250
Cookson Group 357,500 1,655,534
Farnell Electronics PLC 128,700 1,360,815
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
UNITED KINGDOM - CONTINUED
Grand Metropolitan PLC 460,000 $ 3,184,391
Guinness PLC Ord. 520,000 4,166,838
Inchcape Berhad Ord. 226,300 1,117,710
Lex Service Ord. 480,000 2,503,512
London Clubs International PLC 240,000 1,559,005
Next PLC 167,100 1,081,496
Premier Consolidated Oilfields Ltd. Ord. (a) 800,000 331,905
Prudential Corp. PLC 224,000 1,400,197
Smithkline Beecham PLC Class A 350,000 3,653,721
Storehouse PLC 300,000 1,422,450
Telegraph PLC (The) 257,500 1,660,473
United Biscuits Holdings PLC 240,570 1,039,904
Vodafone Group PLC 800,000 3,306,408
Waste Management International PLC
sponsored ADR (a) 160,000 1,620,000
Woolworth Holdings PLC Ord. 310,000 2,329,736
43,242,879
TOTAL COMMON STOCKS
(Cost $176,240,980) 185,807,970
CONVERTIBLE BONDS - 1.9%
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (C)
SWEDEN - 1.9%
Ericsson (L.M.) Telephone Co.
4 1/4%, 6/30/00
(Cost $3,856,316) A2 SEK 12,500,000 3,658,003
REPURCHASE AGREEMENTS - 0.8%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.88%, dated
10/31/95 due 11/1/95 $ 1,514,247 1,514,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $181,611,296) $ 190,979,973
CURRENCY ABBREVIATIONS
SEK - Swedish krona
LEGEND
1. Non-income producing
2. 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 $523,878 or 0.3% of net
assets.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $424,374,148 and $588,401,182, respectively.
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 $74,000 for the period (see Note 4 of Notes to Financial
Statements).
The fund participated in the bank borrowing program. The maximum loan and
the average daily loan balances during the period for which loans were
outstanding amounted to $13,497,000 and $7,080,000, respectively. The
weighted average interest rate was 6.3% (see Note 6 of Notes to Financial
Statements).
INCOME TAX INFORMATION
At October 31, 1995, the aggregate cost of investment securities for income
tax purposes was $181,664,071. Net unrealized appreciation aggregated
$9,315,902, of which $15,770,323 related to appreciated investment
securities and $6,454,421 related to depreciated investment securities.
At October 31, 1995, the fund had a capital loss carryforward of
approximately $1,744,000 all of which will expire on October 31, 2003.
For the period, interest and dividends from foreign countries were
$7,186,941 or $0.45 per share. Taxes accrued or paid to foreign countries
were $794,837 or $0.05 per share.
MARKET SECTOR DIVERSIFICATION (UNAUDITED)
As a Percentage of Total Value of Investments in Securities
Basic Industries 6.0%
Construction & Real Estate 6.8
Durables 5.9
Energy 5.1
Finance 18.9
Health 8.0
Holding Companies 0.5
Industrial Machinery & Equipment 13.2
Media & Leisure 6.0
Nondurables 9.3
Repurchase Agreements 0.8
Retail & Wholesale 5.9
Services 3.5
Technology 3.7
Transportation 1.8
Utilities 4.6
100.0%
EUROPE CAPITAL APPRECIATION
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
OCTOBER 31, 1995

ASSETS

Investment in securities, at value (including repurchase agreements of $1,514,000) (cost $181,611,296) - $ 190,979,973
See accompanying schedule

Cash 5,262

Receivable for investments sold 4,442,391

Receivable for fund shares sold 124,923

Dividends receivable 981,573

Interest receivable 56,763

Redemption fees receivable 63

TOTAL ASSETS 196,590,948

LIABILITIES

Payable for investments purchased $ 1,119,648

Payable for fund shares redeemed 776,698

Accrued management fee 129,416

Other payables and accrued expenses 132,398

TOTAL LIABILITIES 2,158,160

NET ASSETS $ 194,432,788

Net Assets consist of:

Paid in capital $ 183,456,993

Undistributed net investment income 3,687,757

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions (2,081,200
)

Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies 9,369,238

NET ASSETS, for 16,100,670 $ 194,432,788
shares outstanding

NET ASSET VALUE and redemption price per share ($194,432,788 (divided by) 16,100,670 shares) $12.08

Maximum offering price per share (100/97.00 of $12.08) $12.45

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED OCTOBER 31, 1995

INVESTMENT INCOME $ 7,210,341
Dividends

Interest 766,431

7,976,772

Less foreign taxes withheld (794,837
)

TOTAL INCOME 7,181,935

EXPENSES

Management fee $ 1,962,713
Basic fee

Performance adjustment 208,549

Transfer agent 868,715
Fees

Redemption fees (430
)

Accounting fees and expenses 154,672

Non-interested trustees' compensation 2,137

Custodian fees and expenses 206,635

Registration fees 14,775

Audit 41,914

Legal 4,427

Interest 18,591

Miscellaneous 1,787

Total expenses before reductions 3,484,485

Expense reductions (2,438 3,482,047
)

NET INVESTMENT INCOME 3,699,888

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

Investment securities (1,136,503
)

Foreign currency transactions (12,404 (1,148,907
) )

Change in net unrealized appreciation (depreciation) on:

Investment securities 9,365,525

Assets and liabilities in foreign currencies (24,802 9,340,723
)

NET GAIN (LOSS) 8,191,816

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 11,891,704

OTHER INFORMATION $155,891
Sales charges paid to FDC

Accounting fees paid to FSC $153,762

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS YEAR ENDED DECEMBER 21,
OCTOBER 31, 1993
1995 (COMMENCEMENT
OF
OPERATIONS) TO
OCTOBER 31,
1994

<TABLE>
<CAPTION>
<S> <C> <C>
Operations $ 3,699,888 $ 1,968,835
Net investment income

Net realized gain (loss) (1,148,907) 55,763

Change in net unrealized appreciation (depreciation) 9,340,723 28,515

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 11,891,704 2,053,113

Share transactions 303,427,272 942,473,601
Net proceeds from sales of shares

Cost of shares redeemed (473,746,104) (591,671,795)

Redemption fees 4,997 -

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS (170,313,835) 350,801,806

TOTAL INCREASE (DECREASE) IN NET ASSETS (158,422,131) 352,854,919

NET ASSETS

Beginning of period 352,854,919 -

End of period (including undistributed net investment income (loss) of $3,687,757 and $(168,912),$ 194,432,788 $ 352,854,919
respectively)

OTHER INFORMATION
Shares

Sold 26,489,106 83,509,152

Redeemed (41,479,214) (52,418,374)

Net increase (decrease) (14,990,108) 31,090,778

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.

</TABLE>

FINANCIAL HIGHLIGHTS
YEAR ENDED DECEMBER 21,
OCTOBER 31, 1993
(COMMENCEMENT
OF
OPERATIONS) TO
OCTOBER 31,

SELECTED PER-SHARE DATA 1995 1994

<TABLE>
<CAPTION>
<S> <C> <C>
Net asset value, beginning of period $ 11.35 $ 10.00

Income from Investment Operations

Net investment income .23 .08 D

Net realized and unrealized gain (loss) .50 1.27 B

Total from investment operations .73 1.35

Redemption fees added to paid in capital .00 -

Net asset value, end of period $ 12.08 $ 11.35

TOTAL RETURN A 6.43% 13.50%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 194,433 $ 352,855

Ratio of expenses to average net assets 1.36% 1.54% C

Ratio of net investment income to average net assets 1.45% .79% C

Portfolio turnover rate 176% 317% C

A TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
B THE AMOUNT SHOWN FOR A SHARE OUTSTANDING DOES NOT CORRESPOND WITH THE
AGGREGATE NET GAIN ON INVESTMENTS FOR THE PERIOD ENDED DUE TO THE
TIMING OF
SALES AND REPURCHASES OF FUND SHARES IN RELATION TO FLUCTUATING MARKET
VALUES OF THE INVESTMENTS OF THE FUND.
C ANNUALIZED.
D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.

</TABLE>

JAPAN
PERFORMANCE: THE BOTTOM LINE

JAPAN -12.96% 28.35%

JAPAN (INCL. 3% SALES CHARGE) -15.57% 24.50%

TOPIX Index -14.84% 27.16%

Average Japanese Fund -11.26% n/a

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
September 15, 1992. For example, if you invested $1,000 in a fund that had
a 5% return over the past year, the value of your investment would be
$1,050. You can compare the fund's returns to the performance of the TOPIX
index - a broad measure of the Japanese stock market's performance, similar
to the Standard & Poor's 500 stock index in the U.S. To measure how the
fund's performance stacked up against its peers, you can compare it to the
average Japanese fund, which reflects the performance of 12 funds with
similar objectives - in this case, a very small peer group - tracked by
Lipper Analytical Services over the past 12 months. These benchmarks
include reinvested dividends and capital gains, if any, and exclude the
effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED PAST 1 LIFE OF
OCTOBER 31, 1995 YEAR FUND

JAPAN -12.96% 8.30%

JAPAN (INCL. 3% SALES CHARGE) -15.57% 7.25%

TOPIX Index -14.84% 7.98%

Average Japanese Fund -11.26% n/a

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
Fidelity Japan FundTOPIX Total Return
09/15/92 9700.00 10000.00
09/30/92 9641.80 9811.27
10/31/92 9544.80 9332.17
11/30/92 9641.80 9572.82
12/31/92 9661.20 9433.21
01/31/93 9748.50 9384.24
02/28/93 10301.40 9811.42
03/31/93 11484.80 11248.65
04/30/93 13036.80 13164.83
05/31/93 13405.40 13960.79
06/30/93 12610.00 13384.04
07/31/93 13453.90 14324.51
08/31/93 13686.70 14644.62
09/30/93 13318.10 13883.59
10/31/93 12949.50 13630.65
11/30/93 11252.00 11425.15
12/31/93 11637.09 11710.09
01/31/94 13010.29 13580.32
02/28/94 13621.71 14243.17
03/31/94 13391.17 13839.98
04/30/94 13701.90 14380.65
05/31/94 14082.78 14642.50
06/30/94 14934.77 15458.92
07/31/94 14443.62 14904.58
08/31/94 14393.51 14941.03
09/30/94 14042.69 14546.44
10/31/94 14303.30 14931.14
11/30/94 13331.03 14046.14
12/31/94 13552.55 14293.80
01/31/95 12387.96 13541.08
02/28/95 11810.82 12774.70
03/31/95 12758.98 13878.24
04/30/95 12913.57 14542.52
05/31/95 12181.84 13603.56
06/30/95 12016.94 12954.90
07/31/95 12820.82 13954.75
08/31/95 12769.29 13412.04
09/30/95 12738.37 13423.28
10/31/95 12449.80 12716.06

Let's say you invested $10,000 in Fidelity Japan Fund on September 15,
1992, when the fund started and paid the 3% sales charge. By October 31,
1995, the value of your investment would have grown to $12,450 - a 24.50%
increase on your initial investment. That compares to $10,000 invested in
the TOPIX index, which would have grown to $12,716 over the same period - a
27.16% increase.

An interview with Shigeki Makino, Portfolio Manager of Fidelity Japan Fund
Q. HOW HAS THE FUND PERFORMED OVER THE PAST YEAR, SHIGEKI?
A. The fund had a total return of -12.96% for the year ended October 31,
1995, outperforming the TOPIX Index - a measure of the overall performance
of the Japanese stock market - which returned -14.84% over the same period.
However, the fund trailed the average Japanese fund tracked by Lipper
Analytical Services, which returned -11.26% over the same 12-month period.
Q. LET'S TALK ABOUT THE FUND'S RELATIVE PERFORMANCE . . .
A. As a matter of policy, I try to keep the fund fully invested. In
addition, I do not try to predict the direction of currency rates. During
the period, the market was down and the yen was weak. Because many other
funds probably were more aggressive in currency hedging, and probably were
not as fully invested - keeping more of a stake in cash, short-term
investments and bonds - their performance beat that of Japan Fund. At the
same time, the fund beat the index because it had more of a stake in
electronics and pharmaceutical stocks than is represented in the index.
These were two of the best performing sectors in the market over the
period. Many pharmaceutical company stocks benefited from their defensive
nature; in a weak economy, demand for their products remained steady. And
many electronics stocks performed well because they had robust earnings
growth in an economy that wasn't very strong.
Q. WERE THERE PARTICULAR STOCKS WHOSE PERFORMANCE DETRACTED FROM THE FUND'S
RETURN?
A. One was Sony. Some of the reasons were because it wrote off a huge loss
in its motion picture business, and also suffered from a slowdown in
consumer demand in the U.S. and Southeast Asia, especially China. As a
result, Sony had to reduce its prices. In addition, the smaller company
stocks were, in general, a disappointment. The over-the-counter market was
down more than 15% in local currency over the period.
Q. WHAT HAS THE JAPANESE ECONOMY AND INVESTMENT ENVIRONMENT BEEN LIKE OVER
THE PAST SIX MONTHS?
A. Six months ago, economic prospects in Japan were very dim because the
yen was so strong. Such an environment made it very difficult for most
Japanese companies, as the strong yen made their products very expensive
overseas. Over the past six months, we've seen the yen weaken, providing
some hope that the economy would recover and corporate earnings would
improve. Unfortunately, those hopes have fallen short, because growth in
the developed world has slowed, decreasing demand worldwide. In addition,
there has been some latent over-capacity in a variety of manufacturing
areas, holding back the economy. Inventories are coming down a bit, but are
still reasonably high, and consumption is fairly weak.
Q. STILL, THERE MUST HAVE BEEN SOME POSITIVE SIGNS . . .
A. Sure. First of all, long-term interest rates currently are much higher
than short-term ones. That can provide an incentive for investors to borrow
money in the short run and invest more for the long run. Additional capital
spending could help the stock market and the economy overall. Second, going
forward it should be easier for many companies to post improving
performance numbers compared to previous periods, because the recent
numbers have been so weak. Third, sentiment in the market is fairly
pessimistic, making many stocks cheap compared to alternative investments
in bonds. Finally, we're starting to see significant changes in the
attitude of management with respect to shareholders. It appears that
taxation rules will be eased regarding share repurchases, which could help
returns on equity - the amount earned on a company's shareholder equity -
significantly.
Q. LET'S TAKE A LOOK AT THOSE STOCKS THAT WERE POSITIVE CONTRIBUTORS TO THE
FUND'S PERFORMANCE.
A. Three of the top performers were stocks of companies that have made
concerted efforts to increase shareholder value; we've talked about two in
the past. One of those is Omron, a company that makes control devices used
in manufacturing processes. The other is Fuji Photo Film, which did well
because investors started to appreciate the company's attempts to improve
shareholder relations. I found its stock to be very cheap, benefiting from
its defensive nature, meaning its business is relatively stable. The third
top performer was Yamanouchi Pharmaceutical, a company that is becoming
more shareholder friendly. It also benefited from its defensive
characteristics. Honda also has done well, benefiting from growth in
Southeast Asia for its motorcycle products, and the depreciation of the yen
- - which helped overseas auto sales. The introduction of two new
recreational vehicles in Japan also is helping it increase market share.
Finally, NEC has thrived on an increase in semiconductor demand. Its PC
business also has grown because more people are using computers in Japan,
and its communications arm has shown strong earnings because cellular
infrastructure spending has grown faster than many expected.
Q. NEC FALLS INTO THE TECHNOLOGY SECTOR. YOUR INVESTMENTS IN TECHNOLOGY
HAVE INCREASED OVER 12% OVER THE PAST SIX MONTHS, SO THAT THEY MAKE UP
APPROXIMATELY 30% OF THE FUND AT THE END OF THE PERIOD. WHAT'S THE
ATTRACTION THERE?
A. There are four reasons for this. First, I find it to be one of the few
areas that offers attractive valuations - stock prices relative to other
measures such as earnings or cash flow. Second, electronics companies tend
to be among the few Japanese companies that are globally competitive.
Third, the yen's strength over the recent past has forced most electronics
companies to restructure operationally. Finally, these stocks have
underperformed the market significantly over the past 10 to 12 years,
making them attractive from a contrarian perspective.
Q. BUT DOESN'T SUCH A LARGE STAKE IN ONE SECTOR MAKE THE FUND MORE
VOLATILE?
A. I would agree that the fund's concentration in this area may make it
more volatile than the TOPIX index. On the flip side, I'd rather invest in
companies that I think will do well than keep the fund more in line with
the index, which would result in my buying stocks that I don't think are
attractive. In addition, it's important to differentiate the fund's
electronics holdings - which tend to be stocks of diversified companies -
from companies purely devoted to making equipment for something like
semiconductor production. For example, I'd call Hitachi an
electronics-related investment, but if the semiconductor cycle ends, it has
other parts to its business to help protect its value. I've stayed away
from stocks of strictly semiconductor equipment makers or other stocks that
are highly susceptible to the semiconductor cycle.
Q. WHAT'S YOUR OUTLOOK FOR THE NEXT SIX MONTHS?
A. While the yen's depreciation should have a positive impact, I believe
the economy will be reasonably slow. Within that backdrop, I'll be focusing
on areas that have strong business prospects. I find one of the few areas
with that kind of outlook, again, is electronics companies or those firms
with electronics subsidiaries or some exposure to electronics. Among the
risks to the fund are rapid yen appreciation and lower interest rates. That
would hurt the electronics exporters and the economy. In a sluggish
economy, I'll maintain the fund's investments as they are now, with
exposure to electronics, while avoiding banks, utilities and other
interest-rate sensitive sectors.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER,
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.

FUND FACTS
GOAL: to increase the value of the fund's
shares by investing mainly in equity securities
of Japanese issuers
START DATE: September 15, 1992
SIZE: as of October 31, 1995, more than
$343 million
MANAGER: Shigeki Makino, since 1994;
analyst, Fidelity Japan Fund, 1993-1994;
joined Fidelity in 1990
(checkmark)
SHIGEKI MAKINO ON WHAT HE BELIEVES IT WILL TAKE FOR THE
JAPANESE ECONOMY AND STOCK MARKET TO TURN AROUND:
"More than anything else, I think it will take time for
Japan to turn things around. In general, Japanese
companies need to change the way they operate
before the economy and the market rebound. Perhaps
that means getting out of certain businesses or
eliminating production capacity, especially in the
manufacturing sector. In the service sector that may
mean restructuring and becoming more productive,
focusing more on a performance-based career
system. In many ways, Japan resembles the U.S. in
the 1970s; it's making a transition from a
manufacturing economy to a service or value-added
economy. Those companies that change quickly
likely will benefit significantly.
"Currency has something to do with it, too. When the
currency of a country strengthens, it's easy to get
priced out of global markets.
"For Japan to get going again, we probably need to
see a significantly weaker yen - to achieve 3% to
4% growth rates in the gross domestic product -
or we have to see an acceleration of change in
Japan's economy."
(solid bullet) Problems in Japan's banking industry have
worsened. Banks are seeing rising funding costs
because of a lack of trust. The manager finds credit
spreads - the difference between the rate a bank
earns from lending and the rate it pays for funding -
to be peaking. Most banks are not competing
globally. They have an ever-growing problem related
to bad loans and declining values of real estate
collateral. There have been scandals, rocking such
institutions as Daiwa Bank. And most stocks in the
banking sector are overvalued. The main problems
have occurred within the city bank sector, as well as
in non-banking areas such as housing corporations
and other real estate-oriented areas, as well as
leasing companies. The manager has avoided these
problems, with minimal investments in these
troubled areas.
JAPAN
INVESTMENT CHANGES

GEOGRAPHIC DIVERSIFICATION
AS OF OCTOBER 31, 1995

United States 1.7%
Other 3.1%
Row: 1, Col: 1, Value: 1.7
Row: 1, Col: 2, Value: 3.1
Row: 1, Col: 3, Value: 95.2
Japan 95.2%
AS OF APRIL 30, 1995
United States 10.9%
Row: 1, Col: 1, Value: 10.9
Row: 1, Col: 2, Value: 2.5
Row: 1, Col: 3, Value: 86.59999999999999
Other 2.5%
Japan 86.6%
ASSET ALLOCATION
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Stocks, closed-end investment
companies and equity futures 97.4 88.8

Bonds 0.9 0.3

Short-term investments 1.7 10.9

TOP TEN STOCKS
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Omron Corp. 5.3 2.1
(Electrical Equipment)

Hitachi Ltd. 4.7 2.2
(Electronics)

NEC Corp. 4.4 0.0
(Computers & Office Equipment)

Mitsubishi Electric Co. Ord. 3.7 2.5
(Electrical Equipment)

Fuji Photo Film Co. Ltd. 3.4 3.5
(Photographic Equipment)

Rohm Co. Ltd. 2.9 1.5
(Electronics)

Yamanouchi Pharmaceutical Co. Ltd. 2.5 2.3
(Drugs & Pharmaceuticals)

Honda Motor Co. Ltd. 2.5 0.9
(Autos, Tires, & Accessories)

Matsushita Electric Industrial Co. Ltd. 2.4 2.1
(Consumer Electronics)

Ito-Yokado Co. Ltd. 2.2 1.4
(General Merchandise Stores)

TOP TEN MARKET SECTORS
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Technology 29.7 17.0

Industrial Machinery & Equipment 15.7 12.4

Durables 14.8 16.1

Finance 8.5 7.7

Retail & Wholesale 6.7 6.4

Basic Industries 4.7 10.5

Health 4.1 4.1

Media & Leisure 4.0 1.8

Construction & Real Estate 2.2 2.5

Services 1.4 3.0

JAPAN
INVESTMENTS OCTOBER 31, 1995

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 91.7%
SHARES VALUE (NOTE 1)
BASIC INDUSTRIES - 4.7%
CHEMICALS & PLASTICS - 2.4%
JSP Corp. 60,000 $ 693,744
Sekisui Chemical Co. Ltd. 270,000 3,518,691
Shin-Etsu Chemical Co. Ltd. 150,000 3,071,873
Tayca Corp. (a) 223,000 721,082
8,005,390
IRON & STEEL - 1.8%
Kobe Steel (a) 2,018,000 5,299,339
Osaka Steel Co. Ltd. 18,000 275,146
Sumitomo Metal Industries Ltd. (a) 240,000 651,413
6,225,898
METALS & MINING - 0.5%
Sumitomo Sitix Corp. 100,000 1,793,151
TOTAL BASIC INDUSTRIES 16,024,439
CONSTRUCTION & REAL ESTATE - 2.2%
BUILDING MATERIALS - 1.7%
Arc Land Sakamoto Co. Ltd. 11,000 142,276
Berger International 761,000 452,079
C.I. Holdings BHD 85,000 299,361
Chofu Seisaku Co. Ltd. 55,000 1,293,420
Nippon Electric Glass Co. Ltd. 202,000 3,740,924
5,928,060
CONSTRUCTION - 0.5%
Daito Trust Construction 100,200 883,641
Kaneshita Construction Co. Ltd. Ord. 62,000 783,695
1,667,336
TOTAL CONSTRUCTION & REAL ESTATE 7,595,396
DURABLES - 14.6%
AUTOS, TIRES, & ACCESSORIES - 5.7%
Bridgestone Corp. 100,000 1,391,407
Calsonic Corp. 235,000 1,611,876
Daido Metal Co. Ltd. 220,000 1,377,493
Honda Motor Co. Ltd. 482,000 8,406,839
Kansei Corp. 93,000 745,422
Kasai Kogyo Co. Ltd. 205,000 723,139
Keihin Seiki Manuufacturing Co. Ltd. 94,000 554,485
Mitsuba Electric Manufacturing Co. Ltd. 63,000 642,007
Sumitomo Rubber Industries Ltd. 117,000 934,349
Toyoda Gosei Co. 186,000 1,157,317
Toyota Motor Corp. 109,000 2,029,298
19,573,632
CONSUMER DURABLES - 0.5%
Aderans Co. Ltd. 113,000 1,849,101
CONSUMER ELECTRONICS - 5.9%
Citizen Watch Co. Ltd. Ord. 270,000 1,854,588
Daiichi Corp. Ord. 97,000 2,005,487
Matsushita Electric Industrial Co. Ltd. 569,000 8,084,366
Rinnai Corp. Ord. 70,000 1,550,145
Sony Corp. 130,400 5,877,615
Zojirushi Thermos 64,000 752,535
20,124,736
HOME FURNISHINGS - 0.8%
Komatsu Wall Industry Co. Ltd. 77,000 1,297,732
Matsuyadenki Co. Ltd. 74,000 659,115
Shimachu 27,000 714,321
2,671,168

SHARES VALUE (NOTE 1)
TEXTILES & APPAREL - 1.7%
Chiyoda Corp. 103,200 $ 2,032,551
Daidoh Ltd. 75,000 551,173
Danto Corp. 32,000 366,861
Danto Corp. (rights) 6,400 70,237
Morishita Co. Ltd. 44,000 314,732
Roda Vivatex PT (For. Reg.) 661,000 545,740
Tokyo Style Co. Ltd. 50,000 759,394
Yagi Corp. 87,000 1,022,978
5,663,666
TOTAL DURABLES 49,882,303
FINANCE - 6.4%
BANKS - 0.6%
Akita Bank Ltd. 301,000 1,990,838
Union Bank of Philippines (a) 24,600 27,901
2,018,739
CREDIT & OTHER FINANCE - 2.5%
Acom Co. Ltd. 130,000 4,241,830
Japan Securities Finance Co. Ltd. 91,000 1,141,345
Nichiei Co. Ltd. 25,000 1,555,534
Promise Co. Ltd. 40,000 1,579,540
8,518,249
SECURITIES INDUSTRY - 3.3%
Daiko Shoken Business Co. 21,000 257,214
Daiwa Securities Co. Ltd. 270,000 3,174,759
Nomura Securities Co. Ltd. 391,000 7,164,470
Osaka Securities Finance Co. Ltd. Ord. 165,000 784,136
11,380,579
TOTAL FINANCE 21,917,567
HEALTH - 4.1%
DRUGS & PHARMACEUTICALS - 2.5%
Yamanouchi Pharmaceutical Co. Ltd. 383,000 8,556,563
MEDICAL EQUIPMENT & SUPPLIES - 1.6%
Hitachi Medical Corp. Ord. 52,000 662,388
Hoya Corp. 160,000 4,703,346
5,365,734
TOTAL HEALTH 13,922,297
INDUSTRIAL MACHINERY & EQUIPMENT -15.7%
ELECTRICAL EQUIPMENT - 12.2%
Hitachi Koki Co. Ltd. Ord. 88,000 786,399
Icom, Inc. 108,000 994,758
Inaba Denkisangyo Co. Ltd. 57,000 1,228,749
Mirai Industry Co. Ltd. 70,000 1,515,849
Mitsubishi Electric Co. Ord. 1,672,000 12,516,859
Murata Manufacturing Co. Ltd. 154,000 5,417,275
Omron Corp. 777,000 18,196,365
USC Corp. 21,000 674,930
Yaesu Musen Co. Ltd. 33,000 371,858
41,703,042
INDUSTRIAL MACHINERY & EQUIPMENT - 3.5%
Aida Engineering Ltd. Ord. 172,000 1,210,093
Amada Metrecs Co. Ltd. 146,000 1,974,230
Amadasonoike Co. Ltd. 146,000 895,556
Fuji Machine Manufacturing Co. Ltd.
Ord. 107,000 4,036,549
Heiwa Corp. 8,000 213,218
Okuma Corp. (a) 234,000 1,731,125
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
Shintokogio Ltd. 99,000 $ 737,250
Tsugami Corp. 91,000 459,213
Zuiko Corp. 46,000 766,253
12,023,487
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 53,726,529
MEDIA & LEISURE - 4.0%
LEISURE DURABLES & TOYS - 2.2%
Nintendo Co. Ltd. Ord. 60,000 4,421,145
Shimano, Inc. 127,000 2,364,411
Takara Co. Ltd. 84,000 650,238
7,435,794
RESTAURANTS - 1.8%
Edosawa Co. Ltd. 18,000 405,664
Joyfull Co. Ltd. 31,000 583,215
Ohsho Food Service Corp. 78,000 1,520,945
Skylark Co. Ltd. 109,000 1,698,202
Yoshinoya D&C Co. Ltd. Ord. 126 2,000,098
6,208,124
TOTAL MEDIA & LEISURE 13,643,918
NONDURABLES - 0.6%
FOODS - 0.5%
Chubu Suisan Co. Ltd. 150,000 693,744
Morozoff Ltd. 47,000 175,004
Sonton Food Industry Co. Ltd. 80,000 940,669
1,809,417
HOUSEHOLD PRODUCTS - 0.1%
Uni Charm Corp. Ord. 13,000 292,979
TOTAL NONDURABLES 2,102,396
RETAIL & WHOLESALE - 6.7%
APPAREL STORES - 0.5%
Charle Co. Ltd. 95,000 1,377,688
Esprit Asia Holdings Ltd. 1,436,000 487,564
1,865,252
APPLIANCE STORES - 0.4%
Japan CBM Corp. 50,000 1,371,809
GENERAL MERCHANDISE STORES - 2.6%
Ito-Yokado Co. Ltd. 140,000 7,668,414
Matsumotokiyoshi Co. Ltd. 17,400 409,191
Nikku Sangyo Co. Ltd. 32,000 344,912
Shinseido Co. Ltd. 28,000 290,824
8,713,341
GROCERY STORES - 1.2%
Heiwado Co. Ltd. 85,000 1,607,467
Heromini Supermarket PT (For. Reg.) 285,500 584,578
Izumi Co. Ord. 70,000 1,330,655
Marukyo Corp. 48,000 686,689
4,209,389
RETAIL & WHOLESALE, MISC - 2.0%
Amway Japan Ltd. 82,500 3,152,712
Senshukai Co. Ltd. 33,000 620,842
Tachibana Shokai Ltd. 31,000 300,720
Uny Co. Ltd. 156,000 2,690,314
6,764,588
TOTAL RETAIL & WHOLESALE 22,924,379

SHARES VALUE (NOTE 1)
SERVICES - 1.4%
LEASING & RENTAL - 1.0%
Orix Corp. 93,000 $ 3,280,584
PRINTING - 0.4%
Riso Kagaku Corp. 15,000 1,211,112
TOTAL SERVICES 4,491,696
TECHNOLOGY - 29.7%
COMMUNICATIONS EQUIPMENT - 0.2%
Aiphone Co. Ltd. 41,000 662,878
COMPUTER SERVICES & SOFTWARE - 0.4%
Hitachi Information Systems Co. Ltd. 83,000 1,041,007
ISR Group Ltd. (a) 70,000 67,604
Multipolar PT (For. Reg.) 690,000 394,980
1,503,591
COMPUTERS & OFFICE EQUIPMENT - 7.4%
Canon, Inc. 335,000 5,744,452
Fujitsu Ltd. 256,000 3,060,311
Fujitsu Ltd. (warrants) (a) 148 258,135
NEC Corp. 1,133,000 14,987,507
Nihon Unisys Ltd. 121,000 1,209,348
25,259,753
ELECTRONICS - 17.4%
Aiwa Co. Ltd. 85,000 1,849,003
Apollo Electronics Co. Ltd. 16,000 396,649
Hirose Electric Co. Ltd. 38,250 2,447,430
Hitachi Ltd. 1,555,000 15,998,726
KOA 270,000 4,391,750
Nichicon Corp. 390,000 5,273,627
Nitto Denko Corp. 395,000 6,308,853
Rohm Co. Ltd. 160,000 9,735,927
Ryoden Trading Co. Ltd. 135,000 1,055,607
Ryosan Co. Ltd. 81,000 2,254,079
Ryoyo Electro Corp. Ord. 169,000 3,957,768
Toshiba Corp. 400,000 2,904,316
U-Shin Ltd. 51,000 309,833
Varitronix International Ltd. 340,000 648,662
Wako Electric Co. Ltd. 80,000 1,928,372
59,460,602
PHOTOGRAPHIC EQUIPMENT - 4.3%
Fuji Photo Film Co. Ltd. 463,000 11,478,027
Konica Corp. 460,000 3,087,551
14,565,578
TOTAL TECHNOLOGY 101,452,402
TRANSPORTATION - 0.7%
TRUCKING & FREIGHT - 0.7%
Fukuyama Transporting Co. Ltd. 95,000 797,756
Hitachi Transport System Co. 182,000 1,605,017
2,402,773
UTILITIES - 0.9%
TELEPHONE SERVICES - 0.9%
DDI Corp. Ord. 378 3,070,519
TOTAL COMMON STOCKS
(Cost $320,789,756) 313,156,614
CLOSED-END INVESTMENT COMPANIES - 1.4%
SHARES VALUE (NOTE 1)
FINANCE - 1.4%
Morgan Stanley Asia-Pacific Fund, Inc.
(Cost $4,470,596) 428,500 $ 4,713,500
CONVERTIBLE BONDS - 0.9%
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (C)
DURABLES - 0.2%
AUTOS, TIRES, & ACCESSORIES - 0.2%
Kiriu Machine Manufacturing
Co. Ltd. 5 1/5%, 9/30/98 - JPY 69,000,000 756,563
FINANCE - 0.7%
CREDIT & OTHER FINANCE - 0.7%
MBL International Finance
Bermuda Trust 3%,
11/30/02 Aa3 $ 2,310,000 2,396,625
TOTAL CONVERTIBLE BONDS
(Cost $3,255,566) 3,153,188
U.S. TREASURY OBLIGATIONS- 0.3%
U.S. Treasury Bill, yield at time of
purchase 5 1/4%, 12/7/95 (c)
(Cost $994,781) Aaa 1,000,000 994,950
REPURCHASE AGREEMENTS - 5.7%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.88%, dated
10/31/95 due 11/1/95 $ 19,383,165 19,380,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $348,890,699) $341,398,252
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT OF VALUE GAIN/(LOSS)
PURCHASED
166 Nikkei Stock Average
Contracts Dec. 1995 $ 14,661,950 $(106,804)
THE FACE VALUE OF FUTURES PURCHASED AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 4.3%
CURRENCY ABBREVIATIONS
JPY - Japanese yen
LEGEND
1. Non-income producing
2. Principal amount is stated in United States dollars unless otherwise
noted.
3. Security pledged to cover margin requirements for futures contracts. At
the period end, the value of securities pledged amounted to $845,708.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $282,002,662 and $364,705,773, respectively.
The market value of futures contracts opened and closed during the period
amounted to $39,812,804 and $23,932,875, respectively (see Note 2 of Notes
to Financial Statements).
The fund participated in the bank borrowing program. The maximum loan and
the average daily loan balances during the period for which loans were
outstanding amounted to $8,356,000 and $5,260,286, respectively. The
weighted average interest rate was 6.5% (see Note 6 of Notes to Financial
Statements).
INCOME TAX INFORMATION
At October 31, 1995, the aggregate cost of investment securities for income
tax purposes was $349,390,042. Net unrealized depreciation aggregated
$7,991,790, of which $17,181,674 related to appreciated investment
securities and $25,173,464 related to depreciated investment securities.
At October 31, 1995, the fund had a capital loss carryforward of
approximately $34,385,000 all of which will expire on October 31, 2003.
For the period, interest and dividends from foreign countries were
$2,891,369 or $0.10 per share. Taxes accrued or paid to foreign countries
were $430,520 or $0.02 per share.
JAPAN
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
OCTOBER 31, 1995

ASSETS

Investment in securities, at value (including repurchase agreements of $19,380,000) (cost $348,890,699) - $ 341,398,252
See accompanying schedule

Cash 161

Receivable for investments sold 4,240,791

Receivable for fund shares sold 1,109,956

Dividends receivable 936,790

Interest receivable 6,644

Redemption fees receivable 1,219

Receivable for daily variation on futures contracts 62,250

TOTAL ASSETS 347,756,063

LIABILITIES

Payable for investments purchased $ 1,999,941

Payable for fund shares redeemed 1,366,581

Accrued management fee 203,721

Other payables and accrued expenses 204,706

TOTAL LIABILITIES 3,774,949

NET ASSETS $ 343,981,114

Net Assets consist of:

Paid in capital $ 386,798,095

Accumulated net investment loss (419,251
)

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions (34,777,290
)

Net unrealized appreciation (depreciation) on investments (7,620,440
and assets and liabilities in )
foreign currencies

NET ASSETS, for 28,466,696 shares outstanding $ 343,981,114

NET ASSET VALUE and redemption price per share ($343,981,114 (divided by) 28,466,696 shares) $12.08

Maximum offering price per share (100/97.00 of $12.08) $12.45

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED OCTOBER 31, 1995

INVESTMENT INCOME $ 2,906,233
Dividends

Interest 1,251,639

4,157,872

Less foreign taxes withheld (430,520
)

TOTAL INCOME 3,727,352

EXPENSES

Management fee $ 2,621,095
Basic fee

Performance adjustment (362,948
)

Transfer agent 1,188,195
Fees

Redemption fees (47,405
)

Accounting fees and expenses 206,549

Non-interested trustees' compensation 3,173

Custodian fees and expenses 238,522

Registration fees 32,284

Audit 35,276

Legal 20,634

Interest 6,629

Miscellaneous 5,906

Total expenses before reductions 3,947,910

Expense reductions (750 3,947,160
)

NET INVESTMENT INCOME (LOSS) (219,808
)

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

Investment securities (33,224,417
)

Foreign currency transactions (4,057,023
)

Futures contracts (1,111,175 (38,392,615
) )

Change in net unrealized appreciation (depreciation) on:

Investment securities (19,936,966
)

Assets and liabilities in foreign currencies 555,395

Futures contracts (106,804 (19,488,375
) )

NET GAIN (LOSS) (57,880,990
)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ (58,100,798
)

OTHER INFORMATION $375,382
Sales charges paid to FDC

Accounting fees paid to FSC $205,394

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1995 1994

Operations $ (219,808) $ (1,174,746)

Net investment income (loss)

Net realized gain (loss) (38,392,615) 20,876,210

Change in net unrealized appreciation (depreciation) (19,488,375) 9,594,977

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (58,100,798) 29,296,441

Distributions to shareholders from net realized gains (10,783,293) (2,956,786)

Share transactions 328,361,252 1,298,877,029

Net proceeds from sales of shares

Reinvestment of distributions 10,600,847 2,893,660

Cost of shares redeemed (396,639,291) (977,683,984)

Redemption fees 903,307 1,017,597

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS (56,773,885) 325,104,302

TOTAL INCREASE (DECREASE) IN NET ASSETS (125,657,976) 351,443,957

NET ASSETS

Beginning of period 469,639,090 118,195,133

End of period (including undistributed net investment (loss) income of $(419,251) and $316,078, $ 343,981,114 $ 469,639,090

respectively)

OTHER INFORMATION

Sold 26,845,585 95,609,478

Issued in reinvestment of distributions 830,825 247,321

Redeemed (32,128,159) (71,792,044)

Net increase (decrease) (4,451,749) 24,064,755

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
YEARS ENDED OCTOBER 31, SEPTEMBER 15, 1992
(COMMENCEMENT OF
OPERATIONS) TO
OCTOBER 31,

SELECTED PER-SHARE DATA 1995 1994 B 1993 1992

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 14.27 $ 13.35 $ 9.84 $ 10.00

Income from Investment Operations

Net investment income (loss) (.02) (.04) F (.09) -

Net realized and unrealized gain (loss) (1.89) 1.31 3.60 (.16)

Total from investment operations (1.91) 1.27 3.51 (.16)

Less distributions from net realized gain (.36) (.39) - -

Redemption fees added to paid in capital .08 .04 - -

Net asset value, end of period $ 12.08 $ 14.27 $ 13.35 $ 9.84

TOTAL RETURN A, C (12.96)% 10.45% 35.67% (1.60)%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 343,981 $ 469,639 $ 118,195 $ 2,953

Ratio of expenses to average net assets 1.15% 1.42% 1.71% 2.00% D,
E

Ratio of net investment income (loss) to average net assets (.06)% (.32)% (.77)% .03% E

Portfolio turnover rate 86% 153% 257% -%

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
A TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS
OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
B EFFECTIVE NOVEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION
93-2, "DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION
OF INCOME, CAPITAL
GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES." AS
A RESULT, NET INVESTMENT INCOME PER SHARE MAY REFLECT CERTAIN
RECLASSIFICATIONS
RELATED TO BOOK TO TAX DIFFERENCES.
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 STATEMENT).
D FMR VOLUNTARILY AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES
DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE
RATIO WOULD HAVE BEEN
HIGHER.
E ANNUALIZED.
F NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.

</TABLE>

LATIN AMERICA
PERFORMANCE: THE BOTTOM LINE

LATIN AMERICA -39.85% -1.84%

LATIN AMERICA (INCL. 3% SALES CHARGE) -41.66% -4.79%

Morgan Stanley Latin America Free Index -31.33% 23.65%

Average Latin America Fund -38.94% n/a

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
April 19, 1993. For example, if you invested $1,000 in a fund that had a 5%
return over the past year, the value of your investment would be $1,050.
You can compare the fund's returns to the performance of the Morgan Stanley
Latin America Free Index, a broad measure of the performance of stocks in
Latin American markets weighted by each country's market capitalization (or
the total value of the shares outstanding). To measure how the fund's
performance stacked up against its peers, you can compare it to the average
Latin American fund, which reflects the performance of 17 funds with
similar objectives - in this case, a very small peer group - tracked by
Lipper Analytical Services over the past 12 months. These benchmarks
include reinvested dividends and capital gains, if any, and exclude the
effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED PAST 1 LIFE OF
OCTOBER 31, 1995 YEAR FUND

LATIN AMERICA -39.85% -0.73%

LATIN AMERICA (INCL. 3% SALES CHARGE) -41.66% -1.92%

Morgan Stanley Latin America Free Index -31.33% 8.73%

Average Latin American Fund -38.94% n/a

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
Fidelity Latin AMorgan Stanley E
04/19/93 9700.00 10000.00
04/30/93 9641.80 9568.13
05/31/93 9874.60 9818.14
06/30/93 10379.00 10436.73
07/31/93 10737.90 10716.71
08/31/93 11746.70 11640.43
09/30/93 11960.10 11844.71
10/31/93 12881.60 12314.07
11/30/93 13861.30 13120.91
12/31/93 15722.24 14784.37
01/31/94 16981.97 17217.49
02/28/94 16093.32 16719.16
03/31/94 14462.50 15584.66
04/30/94 13437.14 14395.32
05/31/94 14169.54 15245.68
06/30/94 12851.22 14269.20
07/31/94 14042.59 15621.61
08/31/94 16132.38 18162.47
09/30/94 16679.24 18941.58
10/31/94 15829.65 18005.81
11/30/94 15360.92 17492.25
12/31/94 12079.76 14879.00
01/31/95 10331.75 13254.17
02/28/95 8710.70 11334.14
03/31/95 8564.22 10943.14
04/30/95 9618.88 12522.51
05/31/95 9667.71 12807.01
06/30/95 9804.43 13006.60
07/31/95 10331.75 13409.01
08/31/95 10527.06 13562.20
09/30/95 10361.05 13446.57
10/31/95 9521.23 12364.71

Let's say you invested $10,000 in Fidelity Latin America Fund on April 19,
1993, when the fund started, and paid the 3% sales charge. By October 31,
1995, your investment would have been valued at $9,521 - a -4.79% decrease
on your initial investment. That compares to $10,000 invested in the Morgan
Stanley Latin America Free index, which would have grown to $12,365 over
the same period - a 23.65% increase.

An interview with Patti Satterthwaite, Portfolio Manager of Fidelity Latin
America Fund
Q. HOW HAS THE FUND PERFORMED, PATTI?
A. The past year was a difficult time for Latin American Funds, including
this one. The fund's total return for the 12 months ended October 31, 1995,
was -39.85%. That trailed the average Latin American fund, which returned -
38.94% for the same period, as tracked by Lipper Analytical Services. The
fund also trailed the Morgan Stanley Latin America Free Index, which
returned -31.33%.
Q. WHAT MADE THIS PAST YEAR SO DIFFICULT?
A. Throughout the year, the Latin American markets continued to suffer from
the lingering effects of the Mexican peso devaluation. As a result,
investment interest and equity trading volumes in the region remained
sluggish despite a slight improvement in economic activity and falling
interest rates. The decline was triggered when the Mexican government
devalued the peso last December. That, in turn, triggered a bear market in
the entire Latin American region that lasted throughout the spring.
Q. DID CONDITIONS IMPROVE DURING THE YEAR?
A. From the summer to the early fall - when the peso was relatively stable
- - the Latin American markets showed some improvement. At the time, many
investors seemed less negative about the viability of the region's
economies. What's more, Latin American governments consistently stuck to
their policies of maintaining low inflation, budget and trade surpluses.
But the peso experienced more weakness in the fall, and a bad market for
Latin America ensued. In October alone, Brazil was down 9.4%, Argentina
fell 5.7%, Columbia was down 7.8% and Mexico was off 13.2%.
Q. WHAT CAUSED THE FUND TO UNDERPERFORM THE INDEX OVER THE PAST YEAR?
A. In the final months of 1994 this fund was one of the more heavily
weighted funds in Mexico, and therefore was one of the hardest hit by the
currency devaluation there.
Q. LET'S TAKE THESE COUNTRIES ONE AT A TIME. HOW HAVE YOU CHANGED THE
FUND'S HOLDINGS IN BRAZIL?
A. I increased the fund's stake in Brazil to 37.5% at the end of the
period, from 29.8% six months earlier. I believe Brazil's economy is
growing at a healthy pace, the rate of inflation has declined, and its
trade deficit is improving. I also believe an additional positive is the
fact that the country wasn't forced to devalue and defend its currency the
way Mexico and Argentina were. I changed the holdings within Brazil by
reducing the fund's steel and paper holdings. Generally speaking, earnings
for these companies are expected to deteriorate as worldwide metal and
paper prices fall. On the other hand, I maintained holdings in Telebras,
which has been a solid performer over the past six months. The company is a
state holding company controlling 28 telephone operating subsidiaries that
are monopoly suppliers of local and long distance services in Brazil. The
fund's top holding as of October 31, 1995, was Panamerican Beverages, a
multi-regional Coca-Cola bottler that serves Mexico, Brazil and Colombia.
The company has been able to keep its operating margins above its
competitors in Mexico. What's more, its volumes are up 50% in Brazil.
Q. WHAT OTHER NAMES DO YOU LIKE IN BRAZIL?
A. I also like Brahma, Brazil's largest and the world's eighth-largest beer
company. The company has 50% market share in Brazil, its volumes are up
substantially this year compared to last, and its pricing is a positive.
Beer demand is beginning to outstrip supply. For the country's summer
season, the government has actually allowed imports in to meet high demand.
Also, I believe the stock is priced attractively relative to other beer
companies around the world. In addition, holdings in telecommunications
companies such as Telesp were increased. I believe they are most likely to
gain from rate increases and industry privatization.
Q. NOW TURNING TO MEXICO, HOW DID YOU ALTER THOSE HOLDINGS?
A. As I already mentioned, throughout the year I reduced the fund's
holdings in Mexico to 21.1% at the end of the period, from 39.8% a year
ago. I think the country's economic growth rate will lag that of other
Latin American countries. I added Grupo Modelo, a beer company, which has
no debt, more than 50% market share and aggressive plans to gain more.
Another large holding is the retailer Cifra. In spite of a poor economy,
Cifra has gained significant market share by aggressively cutting costs and
improving its operating efficiency.
Q. MOVING TO ARGENTINA, WHY DID YOU REDUCE THE NUMBER OF HOLDINGS IN THAT
COUNTRY?
A. Mainly due to political uncertainty surrounding the finance minister's
resignation and because I was able to find more attractive opportunities
elsewhere. One exception is Perez Companc, which is the fund's largest
Argentine holding, and one of the fund's top 10 holdings at the end of the
period. This conglomerate has an oil and energy focus. The company had a
strong financial profile as many of its businesses were recently privatized
companies.
Q. WHAT ABOUT PERU, CHILE AND COLOMBIA?
A. I increased the fund's holdings in Peru, based on improving earnings
prospects and a falling inflation rate. In that country I liked Telefonica
del Peru, which is the fastest growing telephone company in Latin America.
With a monopoly franchise until the year 2000, it doesn't face any
near-term competitive pressures. I have continued to keep the fund's
holdings in Chile and Colombia rather light. In Chile, expensively valued
equities and low earnings growth kept my weightings low. The Colombian
equity markets suffered in part from political scandals within the
government.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER,
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.

FUND FACTS
GOAL: high total investment return by investing
mainly in equity and debt securities of Latin
American issuers
START DATE: April 19, 1993
SIZE: as of October 31, 1995, more than
$466 million
MANAGER: Patti Satterthwaite, since 1993;
assistant manager, Latin American portion of
Fidelity Emerging Markets Fund, since 1990;
securities and Latin American analyst,
1986-1990; joined Fidelity in 1986
(checkmark)
PATTI SATTERTHWAITE ON HER OUTLOOK:
"The rate of economic growth for Latin American
countries probably isn't going to be as quick as many
might have believed a year ago. That's primarily due
to a diminished amount of foreign capital available to
finance this growth. One positive sign is that despite
all the volatility in the markets, the region generally
has stuck to its policies of reducing inflation and
building budget and trade surpluses. In my view, the
Mexican peso's recent decline has more to do with
speculative trading than economic fundamentals. But
for Latin American markets to improve, we're going to
have to see economic growth and a period of
stability for the peso."
LATIN AMERICA
INVESTMENT CHANGES

GEOGRAPHIC DIVERSIFICATION
AS OF OCTOBER 31, 1995

Other 4.9%
Peru 3.8%
Row: 1, Col: 1, Value: 4.9
Row: 1, Col: 2, Value: 21.1
Row: 1, Col: 3, Value: 7.3
Row: 1, Col: 4, Value: 37.5
Row: 1, Col: 5, Value: 13.9
Row: 1, Col: 6, Value: 5.7
Row: 1, Col: 7, Value: 5.8
Row: 1, Col: 8, Value: 3.8
Panama 5.8%
United States 5.7%
Mexico 21.1%
Argentina 13.9%
Chile 7.3%
Brazil 37.5%
AS OF APRIL 30, 1995
Peru 3.4%
Panama 3.7%
United States 18.7%
Row: 1, Col: 1, Value: 18.7
Row: 1, Col: 2, Value: 3.7
Row: 1, Col: 3, Value: 19.9
Row: 1, Col: 4, Value: 7.5
Row: 1, Col: 5, Value: 29.8
Row: 1, Col: 6, Value: 13.3
Row: 1, Col: 7, Value: 3.7
Row: 1, Col: 8, Value: 3.4
Argentina 13.3%
Other 3.7%
Brazil 29.8%
Mexico 19.9%
Chile 7.5%
ASSET ALLOCATION
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Stocks and closed-end
investment companies 92.4 79.5

Bonds 2.3 2.2

Short-term investments 5.3 18.3

TOP TEN STOCKS

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

Panamerican Beverages, Inc. 4.5 2.8
Class A
(Panama, Beverages)

Perez Companc Class B 3.8 2.9
(Argentina, Basic Industries)

Grupo Carso SA de CV Class A-1 3.6 4.1
(Mexico, Conglomerates)

Telesp PN (Pref. Reg.) 3.2 2.1
(Brazil, Telephone Services)

Brahma (Cia Cervejaria) PN Class B 3.1 1.5
(Pfd. Reg.) (Brazil, Beverages)

Compania Vale do Rio Doce PN Ord. (Brazil, Metals & Mining) 2.8 2.1

Telefonica del Peru (CPT) Class B 2.6 0.9
(Peru, Telephone Services)

Cemex SA, Series B 2.6 2.2
(Mexico, Building Materials)

Telebras ON 2.5 1.4
(Brazil, Telephone Services)

Bradesco PN 2.5 0.8
(Brazil, Banks)

</TABLE>

TOP TEN MARKET SECTORS
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Utilities 23.5 23.6

Nondurables 16.1 11.3

Basic Industries 16.0 16.6

Finance 15.0 8.5

Construction & Real Estate 6.0 4.8

Retail & Wholesale 4.2 4.8

Durables 3.8 3.1

Conglomerates 3.8 4.1

Holding Companies 1.7 0.7

Energy 1.6 2.6

LATIN AMERICA
INVESTMENTS OCTOBER 31, 1995

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 91.0%
SHARES VALUE (NOTE 1)
ARGENTINA - 13.5%
Astra Comp Argentina de Petroleum
(Reg.) 3,222,440 $ 4,768,973
Banco de Galicia Y Buenos Aires SA
sponsored ADR representing
Class B shares 350,171 6,697,020
Banco del Sud SA (a) 84,700 423,479
Banco Frances del Rio de la Plata SA 426,500 3,100,655
Banco Frances del Rio de la Plata SA ADR 172,100 3,764,688
Buenos Aires Embotelladora SA
sponsored ADR 165,600 3,788,100
Capex SA Class A (b) 92,000 593,370
Central Costanera SA Class B
Sponsored ADR (b) 120,700 3,289,075
Citicorp Equity Inv. Class B 31,815 95,440
Commercial del Plata (a) 897,200 1,812,253
Mirgor Sacifia Class C sponsored
ADR (b) 245,710 429,993
Molinos Rio de La Plata SA Class B (Reg) 921,673 5,760,456
Perez Companc Class B 3,971,211 17,512,165
Telecom Argentina Stet France
Telecom SA 1,264,900 4,869,622
Telefonica de Argentina SA Class B 2,193,000 4,626,999
61,532,288
BERMUDA - 1.5%
Credicorp Ltd. 401,029 6,616,979
BRAZIL - 35.0%
Acesita Cia Acos Especiais Itabira Ord. 758,461,301 6,310,626
Acesita Cia Acos Especiais Itabira
(warrants)(a) 43,628,304 454
Bradesco PN 1,225,025,036 11,211,919
Brahma (Cia Cervejaria):
ON (warrants) (a) 1,510,428 298,473
PN Class B (Pfd. Reg.) 36,793,095 14,043,751
PN (warrants) (a) 117,827 17,769
Brasmotor PN 26,016,100 6,088,012
Celesc PN Class B Ord. (a) 5,371,000 4,077,826
Compania Paulista de Forca Luz Ord. 74,903,597 3,695,714
Compania Vale do Rio Doce PN Ord. 79,838,000 12,870,397
Coteminas PN 22,725,310 7,090,581
Eletrobras:
ON 5,979,000 1,697,626
PN Class B 37,949,110 10,814,411
Iochpe Maxion PN Ord. 3,645,311 1,137,345
Itaubanco PN (Pfd. Reg.) 10,120,100 2,999,718
Itausa Investimentos Itau SA 5,221,000 2,986,532
Iven SA (a) 5,895,300 3,310,872
Klabin Industria de Papel e Celulose PN 6,243,165 5,843,836
Light Servicos de Electricidade SA Ord. 27,138,400 8,199,382
Lojas Americanas 64,208,300 1,535,927
Marco Polo PN Ord. Class B (a) 4,052,000 737,494
Minas Gerais State Preference
(warrants) (a)(b) 2,000 50,000
Moinho Santista-Industrias Gerais SA
Ord. (a) 610,700 406,498
Perdigao SA Comercio e Industria
PDG (a) 528,800,100 956,970
Petrobras PN (Pfd. Reg.) 9,596,700 828,521
Rhodia Ster SA GDR (b) 214,000 2,782,000
Souza Cruz Industria Comerico 597,600 4,276,119
Telebras:
ON 341,974,800 11,360,027
(Pfd. Reg.) 257,712,597 10,450,555

SHARES VALUE (NOTE 1)
Telerj SA PN (a) 1,864,540 $ 129,926
Telepar:
PN 7,029,944 2,193,430
PN (rights) (a) 8,393 -
ON (rights) (a) 81 -
Telesp:
ON 580,000 84,482
PN (Pfd. Reg.) 101,378,857 14,551,526
Unibanco PN 59,279,808 2,077,722
Votorantim Celulose e Paper SA
(Pfd. Reg.) 145,251,499 4,380,960
159,497,401
CANADA - 0.0%
Bolivar Goldfields Ltd. (a) 51,750 36,566
CHILE - 7.3%
Banco Osorno y la Union SA
Series A sponsored ADR 343,900 4,642,650
Chilectra SA sponsored ADR 40,400 1,696,800
Chilgener SA sponsored ADR 136,800 3,283,200
Compania Cervecerias Unidas SA ADR 180,300 4,169,438
Cristalerias de Chile SA sponsored ADR 124,700 3,023,975
Empresa Nacional de Electricidad SA 115,000 2,472,500
Empresas Telex Chile SA sponsored ADR 115,200 1,036,800
Enersis SA sponsored ADR 167,100 4,198,388
Maderas Y Sinteticos SA sponsored ADR 111,500 1,993,063
Provida SA sponsored ADR 124,300 3,045,350
Santa Isabel SA sponsored ADR (a) 14,700 332,588
Soc Quimica y Minera de Chile ADR 38,000 1,648,250
Vina Concha y Toro SA
sponsored ADR 97,500 1,706,250
33,249,252
COLOMBIA - 2.3%
Banco de Columbia GDR (b) 420,600 2,471,025
Banco Ganadero Class C
sponsored ADR 76,600 746,850
Banco Industrial Columbiano
sponsored ADR 132,000 1,798,500
CADENALCO, Gran Cadena de
Almacenes Colombianos ADR (b) 15,500 197,625
Carulla & CIA SA Class B
sponsored ADR (b) 105,840 767,340
Cementos Argos SA 105,013 631,816
Compania Nacional de Chocolates 136,000 1,084,182
Noel (Industria Alimenticias) 112,997 424,907
Suramericana de Seguros SA 122,450 2,161,064
10,283,309
LUXEMBOURG - 0.4%
Quilmes Industries SA 111,000 1,953,600
MEXICO - 20.3%
Apasco SA de CV 805,600 2,971,895
Cemex SA, Series B 3,751,613 11,665,793
Cifra SA Class C 10,727,200 11,007,699
Corporacion Geo SA de CV (a) 781,873 2,104,150
Corporacion Geo SA de CV Class B
sponsored ADR (a)(b) 40,800 428,400
DESC (Sociedad de Fomento Industrial) SA:
Class B (a) 1,570,500 5,083,314
Class C (a) 480,048 1,506,299
Empaques Ponderosa SA Class B Ord. 167,500 355,124
Empresas Ica Sociedad Controladora SA
de CV sponsored ADR representing
Ord. (Part. Cert.) 368,600 3,501,700
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
MEXICO - CONTINUED
Emvasa del Valle de Enah Ord. (a) 2,243,600 $ 2,054,916
Far-Ben SA de CV Series B (a) 1,698,700 1,608,663
Fomento Economico Mexicano SA
(FEMSA) Class B 3,422,200 7,139,459
Fondo Opcion SA de CV Class 2,
Series B (a) 142,000 155,748
Groupo Financiero Serfin SA sponsored
ADR (a) 166,300 644,413
Gruma SA Class B 693,396 2,058,137
Grupo Carso SA de CV Class A-1 (a) 3,131,700 16,510,588
Grupo Casa Autrey SA sponsored ADR 21,300 271,575
Grupo Cementos Chihuahua Class B 4,102,300 2,899,152
Grupo Elektra SA 411,500 1,628,551
Grupo Financiero Bancomer Class B (a) 4,603,300 1,197,183
Grupo Financiero Banorte SA de CV
Class B 1,190,000 1,227,844
Grupo Financiero Inbursa SA Class B 1,837,000 5,011,180
Grupo Modelo SA de CV Class C Ord. 348,100 1,333,358
Grupo Posadas SA de CV Ord. (a) 1,292,000 410,883
Grupo Televisa GDS (b) 238,500 4,084,313
Herdez SA de CV Class A (a) 1,567,900 392,252
Kimberly Clark de Mexico SA Class A 31,000 407,491
Sears Roebuck de Mexico SA de CV (a) 638,900 1,760,926
Tolmex SA Class B2 787,200 2,976,339
Transport Maritima Mexicana SA
de CV Class A (a) 47,300 290,820
92,688,165
PANAMA - 5.8%
Banco Latino Americano de
Exportaciones SA Class E 149,900 6,258,325
Panamerican Beverages, Inc. Class A 742,100 20,314,988
26,573,313
PERU - 3.8%
Banco Wiese Ltd. 304,773 503,702
Banco Weise Ltd. sponsored ADR 173,819 1,151,551
Cementos Notre Pacasmayo SA Class T 146,582 322,364
Consor De Alim Fabril Pacifico (a) 839,903 869,886
Minsur SA Class T 123,731 860,500
Southern Peru Copper Corp. Series 2 (a) 169,279 581,174
Tele 2000 SA (a) 251,376 247,055
Telefonica del Peru (CPT):
Class A 400,700 706,390
Class B 6,661,414 11,890,140
17,132,762
UNITED KINGDOM - 0.1%
Antofagasta Holdings PLC 140,000 674,874
UNITED STATES OF AMERICA - 0.4%
Capco Automotive Products Corp. 261,200 1,991,650
VENEZUELA - 0.6%
Electricidad de Caracas 1,447,735 1,240,660
Mavesa SA sponsored ADR (b) 342,622 1,329,349
2,570,009
TOTAL COMMON STOCKS
(Cost $504,931,620) 414,800,168
NONCONVERTIBLE PREFERRED STOCKS - 1.4%
SHARES VALUE (NOTE 1)
BRAZIL - 1.4%
COSIPA (CIA Sidurg Paulista) Class B (a)
(Cost $9,086,675) 4,321,400 $ 6,471,987
CONVERTIBLE BONDS - 0.3%
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (C)
MEXICO - 0.3%
Alfa SA de CV 8%, 9/15/00 (b) - $ 1,000,000 957,500
Grupo Financiero Invermexico
7 1/2%, 6/16/01 (b) - 1,000,000 280,000
TOTAL CONVERTIBLE BONDS
(Cost $2,000,000) 1,237,500
GOVERNMENT OBLIGATIONS (F) - 2.0%
ARGENTINA - 0.4%
Province of Chaco yankee
11 7/8%, 9/10/97 (e) - 1,733,334 1,785,334
BRAZIL - 1.1%
Siderurgica Brasileiras inflation
indexed 6%, 8/15/99 (d) - BRR 37,408,700 5,129,719
MEXICO - 0.5%
Mexican Government Cetes
0%, 2/8/96 - MXN 19,700,000 2,463,185
TOTAL GOVERNMENT OBLIGATIONS
(Cost $8,956,491) 9,378,238
REPURCHASE AGREEMENTS - 5.3%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.88%, dated
10/31/95 due 11/1/95 $ 24,118,939 24,115,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $549,089,786) $ 456,002,893
CURRENCY ABBREVIATIONS
BRR - Brazilian real
MXN - Mexican peso
LEGEND
1. Non-income producing
2. 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 $17,659,990 or 3.8% of net
assets.
3. Principal amount is stated in United States dollars unless otherwise
noted.
4. Principal amount shown is original face amount and does not reflect the
inflation adjustments.
5. Restricted securities - Investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on each holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
Province of Chaco yankee
11 7/8%, 9/10/97 3/9/94 $ 2,717,987
6. 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
At the end of the period, restricted securities (excluding 144A issues)
amounted to $1,785,334 or 0.4% of net assets (see Note 2 of Notes to
Financial Statements).
Purchases and sales of securities, other than short-term securities,
aggregated $295,870,271 and $373,836,797, respectively.
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 $53,346 for the period (see Note 4 of Notes to Financial
Statements).
INCOME TAX INFORMATION
At October 31, 1995, the aggregate cost of investment securities for income
tax purposes was $556,133,089. Net unrealized depreciation aggregated
$100,130,196, of which $36,791,098 related to appreciated investment
securities and $136,921,294 related to depreciated investment securities.
At October 31, 1995, the fund had a capital loss carryforward of
approximately $147,415,000 all of which will expire on October 31, 2003.
For the period, interest and dividends from foreign countries were
$10,874,581 or $0.23 per share. Taxes accrued or paid to foreign countries
were $552,854 or $0.01 per share.
MARKET SECTOR DIVERSIFICATION (UNAUDITED)
Basic Industries 16.0%
Conglomerates 3.8
Construction & Real Estate 6.0
Durables 3.8
Energy 1.6
Finance 15.0
Government Obligations 2.0
Holding Companies 1.7
Media & Leisure 0.9
Nondurables 16.1
Repurchase Agreements 5.3
Retail & Wholesale 4.2
Transportation 0.1
Utilities 23.5
100.0%
LATIN AMERICA
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
OCTOBER 31, 1995

ASSETS

Investment in securities, at value (including repurchase agreements of $24,115,000) (cost $549,089,786) - $ 456,002,893
See accompanying schedule

Cash 37

Receivable for investments sold 13,477,093

Receivable for fund shares sold 1,344,738

Dividends receivable 431,048

Interest receivable 140,170

Redemption fees receivable 211

TOTAL ASSETS 471,396,190

LIABILITIES

Payable for investments purchased $ 1,910,624

Payable for fund shares redeemed 2,384,084

Accrued management fee 318,253

Other payables and accrued expenses 494,471

TOTAL LIABILITIES 5,107,432

NET ASSETS $ 466,288,758

Net Assets consist of:

Paid in capital $ 708,295,751

Undistributed net investment income 4,391,206

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions (153,243,272
)

Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies (93,154,927
)

NET ASSETS, for 47,807,952 shares outstanding $ 466,288,758

NET ASSET VALUE and redemption price per share ($466,288,758 (divided by) 47,807,952 shares) $9.75

Maximum offering price per share (100/97.00 of $9.75) $10.05

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED OCTOBER 31, 1995

INVESTMENT INCOME $ 9,077,820
Dividends

Interest 5,404,934

14,482,754

Less foreign taxes withheld (552,854
)

TOTAL INCOME 13,929,900

EXPENSES

Management fee $ 4,473,579

Transfer agent 2,242,350
Fees

Redemption fees (81,552
)

Accounting fees and expenses 324,942

Non-interested trustees' compensation 5,807

Custodian fees and expenses 1,122,709

Registration fees 62,128

Audit 55,609

Legal 27,398

Miscellaneous 9,713

TOTAL EXPENSES 8,242,683

NET INVESTMENT INCOME 5,687,217

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

Investment securities (net of Brazilian IPMF tax of $502,803) (149,438,501
)

Foreign currency transactions (740,449 (150,178,950
) )

Change in net unrealized appreciation (depreciation) on:

Investment securities (183,896,089
)

Assets and liabilities in (11,018 (183,907,107
foreign currencies ) )

NET GAIN (LOSS) (334,086,057
)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ (328,398,840
)

OTHER INFORMATION $1,673,435
Sales charges paid to FDC

Accounting fees paid to FSC $323,090

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1995 1994

<TABLE>
<CAPTION>
<S> <C> <C>
Operations $ 5,687,217 $ 3,669,803
Net investment income

Net realized gain (loss) (150,178,950) 2,312,139

Change in net unrealized appreciation (depreciation) (183,907,107) 58,380,222

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (328,398,840) 64,362,164

Distributions to shareholders - (1,988,207)
From net investment income

From net realized gain - (1,988,193)

TOTAL DISTRIBUTIONS - (3,976,400)

Share transactions 430,328,990 1,515,609,862
Net proceeds from sales of shares

Reinvestment of distributions - 3,877,609

Cost of shares redeemed (526,564,610) (1,041,351,744)

Redemption fees 2,393,237 7,074,858

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS (93,842,383) 485,210,585

TOTAL INCREASE (DECREASE) IN NET ASSETS (422,241,223) 545,596,349

NET ASSETS

Beginning of period 888,529,981 342,933,632

End of period (including undistributed net investment income of $4,391,206 and $2,630,483,
respectively) $ 466,288,758 $ 888,529,981

OTHER INFORMATION
Shares

Sold 41,302,837 95,990,469

Issued in reinvestment of distributions - 261,277

Redeemed (48,312,015) (67,265,359)

Net increase (decrease) (7,009,178) 28,986,387

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.

</TABLE>

FINANCIAL HIGHLIGHTS
YEARS ENDED APRIL 19, 1993
OCTOBER 31, (COMMENCEMENT
OF
OPERATIONS) TO

SELECTED PER-SHARE DATA 1995 1994 C OCTOBER 31, 1993

<TABLE>
<CAPTION>
<S> <C> <C> <C>
Net asset value, beginning of period $ 16.21 $ 13.28 $ 10.00

Income from Investment Operations

Net investment income .04 .07 .03

Net realized and unrealized gain (loss) (6.52) 2.82 3.23

Total from investment operations (6.48) 2.89 3.26

Less Distributions - (.05) -
From net investment income

From net realized gain - (.05) -

Total distributions - (.10) -

Redemption fees added to paid in capital .02 .14 .02

Net asset value, end of period $ 9.75 $ 16.21 $ 13.28

TOTAL RETURN A (39.85)% 22.89% 32.80%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 466,289 $ 888,530 $ 342,934

Ratio of expenses to average net assets 1.41% 1.48% 1.94% B

Ratio of net investment income to average net assets .97% .47% 1.21% B

Portfolio turnover rate 57% 77% 72% B

A TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
B ANNUALIZED.
C EFFECTIVE NOVEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION
93-2, "DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION
OF INCOME, CAPITAL
GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES."
AS A RESULT, NET INVESTMENT INCOME PER SHARE MAY REFLECT CERTAIN
RECLASSIFICATIONS
RELATED TO BOOK TO TAX DIFFERENCES.

</TABLE>

PACIFIC BASIN
PERFORMANCE: THE BOTTOM LINE

PACIFIC BASIN -15.87% 36.41% 86.48%

PACIFIC BASIN
(INCL. 3% SALES CHARGE) -18.39% 32.32% 80.88%

Morgan Stanley Pacific Index -11.21% 20.39% 66.09%

Average Pacific Region Fund -9.48% 44.12% n/a

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 October 1, 1986. For example, if you invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment would
be $1,050. You can compare the fund's returns to the performance of the
Morgan Stanley Pacific Index, a broad measure of the performance of stocks
in the Pacific region, weighted by each country's market capitalization (or
total value of its outstanding shares). To measure how the fund's
performance stacked up against its peers, you can compare it to the average
Pacific region fund, which reflects the performance of 36 funds with
similar objectives tracked by Lipper Analytical Services over the past 12
months. These benchmarks include reinvested dividends and capital gains, if
any, and exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED PAST 1 PAST 5 LIFE OF
OCTOBER 31, 1995 YEAR YEARS FUND

PACIFIC BASIN -15.87% 6.41% 7.10%

PACIFIC BASIN
(INCL. 3% SALES CHARGE) -18.39% 5.76% 6.74%

Morgan Stanley Pacific Index -11.21% 3.78% 5.74%

Average Pacific Region Fund -9.48% 7.45% n/a

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
Pacific Basin (3Pacific Index
10/01/86 9700.00 10000.00
10/31/86 9603.00 8862.00
11/30/86 10146.20 9399.07
12/31/86 10611.80 10088.05
01/31/87 12300.82 11598.87
02/28/87 12689.17 11904.22
03/31/87 13951.29 13131.82
04/30/87 15349.33 15062.31
05/31/87 15397.87 15062.31
06/30/87 14329.93 14116.01
07/31/87 14407.60 13782.70
08/31/87 15203.70 15420.34
09/30/87 14999.82 14974.05
10/31/87 12058.11 13345.52
11/30/87 12339.66 13875.39
12/31/87 13264.02 14088.57
01/31/88 13264.02 14793.36
02/29/88 13813.42 15831.10
03/31/88 14578.65 17064.31
04/30/88 15118.23 17280.12
05/31/88 14578.65 16620.65
06/30/88 13744.74 16055.73
07/31/88 13479.85 16785.08
08/31/88 13430.80 15542.64
09/30/88 13627.01 16142.75
10/31/88 13725.12 17469.62
11/30/88 14608.08 18911.35
12/31/88 14649.48 19018.54
01/31/89 14926.25 19193.41
02/28/89 15252.46 19438.67
03/31/89 14896.60 18821.29
04/30/89 15282.11 18832.42
05/31/89 14689.02 17780.12
06/30/89 14006.96 16987.42
07/31/89 15677.51 19192.02
08/31/89 14837.29 18004.64
09/30/89 16063.02 19105.05
10/31/89 15598.43 18593.72
11/30/89 16102.56 19478.89
12/31/89 16325.66 19500.06
01/31/90 15770.16 18396.74
02/28/90 14782.59 16611.35
03/31/90 13867.04 13619.98
04/30/90 13712.73 13711.64
05/31/90 15039.77 15616.28
06/30/90 15266.09 14987.13
07/31/90 15780.44 14873.33
08/31/90 13681.87 13454.50
09/30/90 11449.57 11345.09
10/31/90 13260.10 13796.09
11/30/90 12046.22 12266.22
12/31/90 11882.90 12788.36
01/31/91 12112.22 13186.92
02/28/91 13206.70 14812.56
03/31/91 13039.92 14005.66
04/30/91 13602.80 14365.60
05/31/91 13508.99 14309.99
06/30/91 13279.67 13374.87
07/31/91 13446.44 13825.95
08/31/91 12539.59 13124.61
09/30/91 13321.36 14157.05
10/31/91 13707.03 14759.53
11/30/91 13060.77 13809.99
12/31/91 13373.48 14233.78
01/31/92 13029.50 13682.29
02/29/92 12904.42 12724.00
03/31/92 12091.38 11513.90
04/30/92 11966.29 10986.10
05/31/92 12925.26 11842.95
06/30/92 12654.25 10911.67
07/31/92 12091.38 10759.99
08/31/92 12445.78 12234.05
09/30/92 12362.39 11953.73
10/31/92 12508.32 11531.67
11/30/92 12456.20 11749.15
12/31/92 12354.67 11614.67
01/31/93 12480.95 11593.05
02/28/93 13207.07 12155.13
03/31/93 14101.58 13623.52
04/30/93 15532.78 15794.04
05/31/93 16290.48 16253.52
06/30/93 15448.59 15987.05
07/31/93 16269.43 16932.23
08/31/93 17016.60 17433.05
09/30/93 17058.70 16781.05
10/31/93 18395.19 17153.59
11/30/93 17490.17 14733.35
12/31/93 20250.36 15760.40
01/31/94 20799.71 17584.75
02/28/94 21004.37 18038.08
03/31/94 19431.73 17042.36
04/30/94 19970.31 17779.27
05/31/94 20562.74 18202.23
06/30/94 20476.56 18797.67
07/31/94 20433.48 18394.37
08/31/94 21402.91 18714.06
09/30/94 21122.85 18245.66
10/31/94 21499.85 18707.18
11/30/94 19733.33 17663.27
12/31/94 19680.70 17782.12
01/31/95 17857.29 16659.13
02/28/95 17565.54 16246.54
03/31/95 18124.72 17493.87
04/30/95 18331.37 18237.90
05/31/95 18221.97 17508.42
06/30/95 18051.78 16766.42
07/31/95 19230.92 17975.25
08/31/95 19024.27 17298.16
09/30/95 18805.46 17458.39
10/31/95 18088.25 16609.48

Let's say you invested $10,000 in Fidelity Pacific Basin Fund on October 1,
1986, when the fund started, and paid the 3% sales charge. By October 31,
1995, the value of your investment would have grown to $18,088 - an 80.88%
increase on your initial investment. That compares to $10,000 invested in
the Morgan Stanley Pacific index, which would have grown to $16,609 over
the same period - a 66.09% increase.

An interview with Simon Fraser, Portfolio Manager of Fidelity Pacific Basin
Fund
Q. SIMON, HOW DID THE FUND PERFORM?
A. It's been disappointing. For the 12 months ended October 31, 1995, the
fund returned -15.87%. That trailed the Morgan Stanley Pacific Index, which
returned -11.21%, and the average Pacific region fund, which returned
- -9.48% for the same time period, according to Lipper Analytical Services.
Q. WHY DID THE FUND UNDERPERFORM THE INDEX?
A. As I've mentioned in other reports, this is a broadly diversified Asian
fund, and there's no one index to benchmark the fund's performance. The
Morgan Stanley index, for example, has about 80% of its assets invested in
Japan while this fund usually has between 40% and 60% of its assets
invested there. The fund's performance during the past six months was
better than average, with most of the damage occurring in the first half of
the year. For the six months ending October 31, 1995, the fund returned
- -1.33% while the Morgan Stanley Index returned -8.93%. Beginning in about
August, Japanese markets began rebounding nicely, but at the same time the
yen weakened, which somewhat offset the gains. Toward the end of the
period, the fund was also hurt by its exposure to Thailand and Malaysia.
Q. THE FUND HAS ABOUT 40% OF ITS ASSETS INVESTED IN JAPAN. WHAT WAS YOUR
JAPANESE INVESTMENT STRATEGY DURING THE PERIOD?
A. In recent months, the percentage growth of personal computers in Japan
has been greater than in other parts of the world. It was only within the
past year that Microsoft Windows(trademark) has become available in Japan
in Japanese language form. In addition, U.S. companies such as Compaq, AST
and Apple have begun to penetrate the Japanese market in the past 18 - 24
months. As a result, prices have come down sharply and volumes have
increased. Many Japanese technology stocks have been the best performers,
and were an area of concentration for the fund. NEC is currently the
second-largest producer of commodity DRAM chips in the world. It's been a
good investment because as its stock price has gone up, its earnings growth
continues to be dramatic. Toshiba, a producer of personal computers and
lap- tops, has also performed well. Other technology stocks that helped
during the period include NGK Spark Plug and Kyocera, both suppliers of
ceramic packages for Intel semiconductor chips and smaller holdings within
the fund, have done very well due to the boom in Intel's business.
Q. THE FUND'S HOLDINGS IN AUSTRALIA HAVE DONE WELL. WHAT'S THE STORY THERE?
A. The Australian economy has been going through a recovery phase in recent
years and there are some signs that it's begun to slow. In the late 1980s,
many companies in Australia became overburdened with debt when they went on
buying sprees throughout the world to acquire companies that weren't
compatible with their underlying businesses. As a result, many Australian
companies became over-diversified, over-stretched and over-borrowed. Since
then, managers with more financial acumen have begun running these troubled
companies. They've begun restructuring balance sheets by selling business
that don't fit with their core businesses and have concentrated more on
taking their talent outside of the country to spur growth rather than
growing by diversifying into other, often inappropriate ventures. The main
attraction in Australia has been the valuation of individual companies
rather than any broad market themes.
Q. WHAT PARTICULAR STOCKS LOOKED ATTRACTIVE IN AUSTRALIA DURING THE PERIOD?
A. Fosters Brewing is a good example of a company that got overly stretched
in the 1980s. Recently, it has managed to restructure and become more
focused on its core beer business. Fosters recently sold its UK operations,
which has left it with a large amount of cash. Oil Search Ltd. is another
Australian stock in the fund's top 10 holdings as of October 31, 1995. An
oil exploration company, it's had considerable success in discovering oil
wells and bringing them into production in Papua, New Guinea.
Q. WHAT ABOUT THAILAND AND MALAYSIA . . .
A. Some of the fund's holdings in Malaysia and Thailand were negative for
the fund during the period. In both countries, economic growth has been
very strong - between 8% and 9% per year - yet the stock markets have
become quite weak. The fear has been that their economies have been growing
too fast and that interest rates will have to go up sharply in order to
slow it down. So far, interest rates have been held down artificially which
led to the overheated economy in the first place. That's why the stock
markets in these countries haven't reacted to the overall decline in
interest rates we've seen in other economies around the world. When U.S.
interest rates started to come down in the spring of 1995, and U.S. markets
started to take off again, most thought that Southeast Asian markets would
do the same since they're highly geared into the U.S. interest rate cycle;
but it didn't happen. While some Southeast Asian markets have reacted more
quickly, these markets have been slow to take the appropriate measures to
slow down their economies. As a result, some of the holdings there did not
perform well.
Q. DID YOU ESTABLISH ANY INVESTMENT THEMES ACROSS THE MARKETS DURING THE
PAST SIX MONTHS?
A. Yes. I think growth in Southeast Asian economies has increased consumer
demand. I've begun adding to the fund's consumer-related holdings in
Malaysia, Thailand and Indonesia. In general, these companies produce a lot
of cash and have very strong balance sheets and are much more geared to
consumer spending patterns than to interest rates and economic activity. In
Indonesia, Sampoerna is the largest producer of clove cigarettes and is
growing by about 40% per year. Astra International is an assembler of
Japanese autos in Indonesia that performed very well during the period.
Q. WHAT'S YOUR OUTLOOK FOR THE NEXT SIX MONTHS?
A. I think the corporate restructuring of Japan is beginning to bring
considerable success to many of the companies there, and that the earnings
recovery will continue to come through. In addition, the fact that the yen
has started to decline is also good for Japanese companies that export. I
expect the recovery in Japan to continue to be a major theme for this fund,
and I'll probably deploy assets there as they come into the fund. The
fund's been overexposed to Malaysia and Thailand, and weightings in those
areas may decline as concerns about interest rate pressure grow. In any
event, I'll continue to focus on consumer stocks rather than interest rate
sensitive stocks in those countries. Since I plan to take a more defensive
stance across the whole of Southeast Asia, I would expect to see Australia,
Singapore and Hong Kong featured more prominently in the fund than
Thailand, Indonesia and Malaysia.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER,
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.

FUND FACTS
GOAL: to increase the value of the fund's
shares by investing mainly in equity securities
of Pacific Basin issuers
START DATE: October 1, 1986
SIZE: as of October 31, 1995, more than
$317 million
MANAGER: Simon Fraser, since 1993; also
manages Japan Small Companies Fund, various
funds for non-U.S. investors; joined Fidelity in
1981
(checkmark)
SIMON FRASER ON THE FUND'S SHIFT FROM INVESTING IN
INTEREST RATE-SENSITIVE STOCKS TO CONSUMER STOCKS:
"The current challenge in investing in many of the
economies of Southeast Asia is that they have
grown too quickly while interest rates have remained
artificially low. To combat this trend, I've begun to
make changes to the fund that I hope will be
beneficial.
"First, with the economic conditions I just described,
interest rate-sensitive stocks are unlikely to do well.
For that reason, I've cut the fund's investments in
construction and real estate stocks during the period
from 16.9% of investments six months ago to 11.8%
as of October 31, 1995. I would expect to cut more
real estate and financial stocks going forward.
"In addition, I've begun investing in consumer-related
stocks - especially in the beer and tobacco
industries. Going forward, these investment changes
should help the fund to outperform."
PACIFIC BASIN
INVESTMENT CHANGES

GEOGRAPHIC DIVERSIFICATION
AS OF OCTOBER 31, 1995

United
States 3.3%
Australia 10.0%
Thailand 8.5%
Row: 1, Col: 1, Value: 3.3
Row: 1, Col: 2, Value: 8.6
Row: 1, Col: 3, Value: 4.6
Row: 1, Col: 4, Value: 7.3
Row: 1, Col: 5, Value: 9.0
Row: 1, Col: 6, Value: 5.2
Row: 1, Col: 7, Value: 40.1
Row: 1, Col: 8, Value: 6.2
Row: 1, Col: 9, Value: 5.7
Row: 1, Col: 10, Value: 10.0
Hong Kong 5.7%
Singapore 4.7%
Other 7.3%
Indonesia 6.2%
Malaysia 9.0%
Korea (South) 5.2%
Japan 40.1%
AS OF APRIL 30, 1995

Thailand 5.9%
Australia 8.6%
Row: 1, Col: 1, Value: 5.9
Row: 1, Col: 2, Value: 7.1
Row: 1, Col: 3, Value: 9.1
Row: 1, Col: 4, Value: 9.5
Row: 1, Col: 5, Value: 4.0
Row: 1, Col: 6, Value: 44.1
Row: 1, Col: 7, Value: 6.7
Row: 1, Col: 8, Value: 5.0
Row: 1, Col: 9, Value: 8.6
Singapore 7.1%
Hong Kong 5.0%
Other 9.1%
Indonesia 6.7%
Malaysia 9.5%
Korea (South) 4.0%
Japan 44.1%
ASSET ALLOCATION
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Stocks and closed-end
investment companies 95.2 94.9

Bonds 1.5 3.5

Short-term investments 3.3 1.6

TOP TEN STOCKS
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

NEC Corp. 1.7 0.0
(Japan, Computers & Office Equipment)

HSBC Holdings PLC 1.4 0.0
(Hong Kong, Banks)

Omron Corp. 1.4 0.7
(Japan, Electrical Equipment)

Oil Search Ltd. 1.2 0.8
(Australia, Oil & Gas)

Toshiba Corp. 1.2 0.9
(Japan, Electronics)

Berjaya Sports Toto BHD 1.2 0.0
(Malaysia, Real Estate)

Sumitomo Sitix Corp. 1.2 0.7
(Japan, Metals & Mining)

Fosters Brewing Group Ltd. 1.1 0.5
(Australia, Beverages)

Sampoerna Hanjaya Mandala 1.1 0.6
(For. Reg.) (Indonesia, Tobacco)

Sony Corp. 0.9 1.3
(Japan, Consumer Electronics)

TOP TEN MARKET SECTORS
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Finance 14.8 13.3

Construction & Real Estate 11.8 16.9

Technology 11.0 6.3

Durables 8.5 5.0

Basic Industries 8.2 15.2

Nondurables 7.0 5.4

Industrial Machinery & Equipment 6.6 6.5

Media & Leisure 5.5 4.9

Retail & Wholesale 5.3 3.8

Energy 4.4 3.9

PACIFIC BASIN
INVESTMENTS OCTOBER 31, 1995

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 93.1%
SHARES VALUE (NOTE 1)
AUSTRALIA - 10.0%
Accor Asia Pacific Ltd. 804,716 $ 465,079
Amcor Ltd. 126,885 949,459
Ampolex Ltd. Ord. 1,225,674 2,423,366
Australian National Industries Ltd. 1,351,935 1,058,921
CSR Ltd. 159,374 507,811
Coca-Cola Amatil Ltd. 32,254 249,200
Country Road Ltd. 566,163 731,916
Erg Ltd. 23,200 28,051
Fairfax (John) Holdings Ltd. 750,000 1,539,911
Fosters Brewing Group Ltd. 3,750,000 3,564,609
Goodman Fielder Ltd. Ord. 500,000 501,897
Lend Lease Corp. Ltd. 75,000 1,041,436
Memtec Ltd. Ord. 841,638 1,382,451
Odin Mining & Investment Co. (a) 87,500 21,958
Oil Search Ltd. 4,302,500 3,631,738
Pacific BBA Ltd. (b) 1,172,989 2,497,599
Plutonic Resources Ltd. 300,000 1,368,810
Publishing & Broadcasting 350,000 1,112,538
Qantas Airways Ltd. 128,000 225,823
Rothmans Holdings Ltd. Ord. 344,500 1,283,678
Shomega Ltd. 715,000 869,955
TNT Ltd. (a) 500,000 703,416
VA Holdings Ltd. 1,010,000 138,250
W.D. & H.O. Wills Holdings Ltd. 155,700 224,964
Western Mining Holdings Ltd. 200,680 1,284,952
Woodside Petroleum Ltd. 300,000 1,434,969
Woolworths Ltd. 844,156 2,009,267
31,252,024
CHINA (PEOPLES REP.) - 0.8%
Harbin Power Equipment Co. Ltd.
Class H 120,000 27,628
Louyang Glass Ltd. Class H 934,000 317,120
Maanshan Iron & Steel Co. Ltd.
Class H 2,750,000 501,533
Northeast Electrical Transmission &
Transformation Machinery Mfg. Co.
Ltd. Class H (a) 2,750,000 558,444
Yizheng Chemical Fibre Co. Ltd. Class H 3,935,000 1,145,183
2,549,908
GRAND CAYMAN (UK OVERSEAS TER.) - 0.0%
Sanzo Finance Ltd. (warrants) (a) 250 6,250
HONG KONG - 5.2%
CDL Hotels International Ltd. 672,465 304,428
Dickson Concepts International Ltd. 1,000,000 724,328
Esprit Asia Holdings Ltd. 430,000 145,997
First Pacific Co. Ltd. 930,000 1,070,583
Goldlion Holdings 500,000 284,558
Great Eagle Holdings Ltd. 845,000 2,317,075
HSBC Holdings PLC 290,000 4,219,860
Hong Kong & China Gas Co. Ltd. 650,000 1,055,127
Hong Kong Ferry Holdings Ltd. 465,000 481,161
International Bank of Asia Ltd. 2,184,000 1,299,445
JCG Holdings Ltd. 668,000 488,171
Jardine International Motor Corp. 888,000 1,027,977
K Wah International Holdings Ltd.
(warrants) (a) 450,028 1
New Asia Reality & Trust Co. Class A 309,000 529,568
New World Infrastructure Ltd. 280,000 492,543
New World Infrastructure Ltd. (b) 404,000 710,670
Wah Kwong Shipping Holdings Ltd. 708,000 993,597
16,145,089

SHARES VALUE (NOTE 1)
INDIA - 0.1%
Indo Gulf Fertilizer and Chemicals Corp. Ltd.
GDR (b) 17,000 $ 22,100
Tata Electric Companies GDR (b) 210 65,100
Tube Investments of India Ltd. GDR 110,000 352,000
439,200
INDONESIA - 5.3%
Andayani Megah PT 809,500 695,080
Astra International PT (For. Reg.) 1,286,400 2,577,334
Bakrie & Bros PT Ord. (For. Reg.) 1,160,000 2,094,233
Bank International Indonesia PT Ord. 200,000 700,133
Bank Mashill Utama PT (For. Reg.) 350,400 200,581
Bank Tiara Asia PT 457,500 523,778
Bimantara Citra (For. Reg.) (a) 165,500 127,532
Bukaka Teknik Utama (For. Reg.) 58,500 86,939
Citra Marga Nusadhala Persada PT 410,000 338,508
Gadjah Tunggal PT (For. Reg.) 830,000 529,943
Indofood Sukses Makmur (For. Reg.) 200,000 924,704
Kabelmetal Indonesia PT 100,000 92,470
Matahari Putra Prima PT (For. Reg.) 600,000 1,254,955
Medco Energi Corp. (For. Reg.) 1,021,000 1,663,454
Modernland Realty PT 60,000 84,544
Mulia Industrindo PT (For. Reg.) 500 1,475
Panin Bank PT (For. Reg.) 900,250 991,029
Semen Cibinong PT (For. Reg.) 124,000 324,879
Sampoerna Hanjaya Mandala (For. Reg.) 368,000 3,402,909
16,614,480
JAPAN - 40.1%
Acom Co. Ltd. 30,000 978,884
Aida Engineering Ltd. Ord. 30,000 211,063
Aim Services Co. Ltd. 50,000 906,374
Amway Japan Ltd. 36,600 1,398,658
Apic Yamada Corp. 12,000 529,126
CMK Corp. 105,000 1,419,823
Charle Co. Ltd. 26,000 377,052
Chofu Seisakusho Co. Ltd. 85,000 1,998,922
Daiwa Kosho Lease Co. Ltd. 100,000 901,475
Daiwa Securities Co. Ltd. 60,000 705,502
Denki Kagaku Kogyo (a) 429,000 1,446,044
Denyo Co. Ltd. (warrants) (a) 740 249,750
FCC Co. Ltd. 56,000 1,728,480
Fuji Coca-Cola Bottling Co. Ltd. 29,000 306,893
Fuji Photo Film Co. Ltd. 100,000 2,479,055
Fujisash Co. Ltd. 11,200 72,432
Fujitsu Kiden Ltd. 60,000 752,535
Fujitsu Ltd. (warrants) (a) 4,200 683,678
Funai Consulting Co. Ltd. 32,000 269,659
Fuso Pharmaceutical Industries Ltd. 97,000 575,033
Geomatec Co. Ltd. 14,000 666,699
Hankyu Corp. 200,000 1,040,615
Hankyu Corp. (warrants) (a) 1,800 585,000
Hitachi Ltd. 200,000 2,057,714
Hitachi Ltd. ADR 23,800 2,490,075
Hitachi Transport System Co. 104,000 917,153
Honda Motor Co. Ltd. 125,000 2,180,197
Hoya Corp. 50,000 1,469,796
Inui Tatemono Co. Ltd. 27,000 275,146
Isetan Co. Ltd. 125,000 1,665,768
Ito-Yokado Co. Ltd. 40,000 2,190,975
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
JAPAN - CONTINUED
Japan Industrial Land
Development Co. Ltd. (a) 32,000 $ 1,197,786
Kagoshima Bank Ltd. 100,000 744,696
Katokichi Co. Ltd. 25,000 458,086
Kawasaki Kisen Kaisha Ltd. (a) 600,000 1,610,896
Keiyo Co. Ltd. 30,000 296,899
Kobe Steel 709,000 1,861,859
Konica Corp. 200,000 1,342,413
Kyocera Corp. (warrants) (a) 835 1,409,063
Kyushu Matsushita Electric Co. Ltd. 50,000 798,589
Mabuchi Motor Co. 100 6,065
Marukyo Corp. 27,000 386,262
Matsushita Electric Industrial Co. Ltd. 70,000 994,562
Matsushita-Kotobuki Electronics
Industries Ltd. 30,000 608,495
Miroku Jyoho Service Co. Ltd. 15,000 242,516
Mitsuba Electric Manufacturing Co. Ltd.
(warrants) (a) 3,000 646,722
Mitsubishi Electric Co. Ord. 320,000 2,395,571
Mitsubishi Motors Corp. (warrants) (a) 573 673,754
Mitsui Engineer & Shipbuilding Co. Ltd. 250,000 548,724
Mitsui Fudosan (Re Devel) Co. 140,000 1,605,017
Mitsui High-Tec, Inc. 70,000 1,899,956
Mitsui Mining & Smelting Co. Ltd.
(warrants) (a) 1,150 5,888
Mitsui OSK Lines Ltd. 500,000 1,313,018
Mitsukoshi Ltd. 175,000 1,390,672
Miyosha Oil & Fat Co. Ltd. Ord. 150,000 529,126
NEC Corp. 400,000 5,291,265
NGK Spark Plug Co. Ltd. (warrants) (a) 1,400 1,925,000
NKK Corp. (a) 100,000 242,026
Namura Shipbuilding Co. Ltd. 265,000 1,480,084
Nichicon Corp. 200,000 2,704,424
Nintendo Co. Ltd. Ord. 15,000 1,105,286
Nippon Crane Works Ltd. (a) 81,000 138,896
Nippon Electric Glass Co. Ltd. 38,000 703,738
Nippon Hodo Co. Ltd. 70,000 1,090,588
Nippon Kagaku Co. Ltd. 100,000 571,261
Nippon Shokubai Co. Ltd. 300,000 2,622,116
Nippon Telegraph & Telephone Corp. Ord. 204 1,677,096
Nippon Yakin Kogyo Co. Ltd. (a) 158,000 696,683
Nishimatsu Construction 125,000 1,408,554
Nitto Denko Corp. 100,000 1,597,178
Nomura Securities Co. Ltd. 100,000 1,832,345
Ohkura Electric Co. Ltd. (a) 40,000 356,670
Oliver Corp. (warrants) (a) 2,000 140,783
Olympus Optical Co. Ltd. 100,000 935,770
Omron Corp. 180,000 4,215,374
Ono Pharmaceutical Co. Ltd. 15,000 595,267
Orix Corp. 22,000 776,052
Promise Co. Ltd. 48,900 1,930,988
Riso Kagaku Corp. 8,000 645,926
Rohm Co. Ltd. 10,000 608,495
Ryoyo Electro Corp. Ord. 25,000 585,469
Sampei Construction Co. Ltd. 3 22,282
San-In Godo Bank Ltd. 30,000 249,571
Sanyo Coca-Cola Bottling Co. Ltd. 45,000 608,495
Sekisui Chemical Co. Ltd. 130,000 1,694,185
Senshukai Co. Ltd. 31,000 583,215
Shikoku Coca-Cola Bottling Co. Ltd. 26,000 308,265
Shinkawa Ltd. 35,000 1,251,776
Sony Corp. 60,500 2,726,961
Sumitomo Chemical Co. Ltd. (warrants) (a) 1,100 110,886

SHARES VALUE (NOTE 1)
Sumitomo Metal Mining Co. Ltd.
(warrants) (a) 707 $ 1,042,825
Sumitomo Rubber Industries Ltd. 140,000 1,118,025
Sumitomo Sitix Corp. 200,000 3,586,302
Super Daiei Co. Ltd. 12,000 117,584
Taikisha Ltd. 77,000 1,229,827
Takara Co. Ltd. 123,000 952,134
Takuma Co. Ltd. 197,000 2,509,431
Tanseisha Co. Ltd. 30,000 283,671
Tasaki Shinju Co. Ltd. Ord. 50,000 480,133
Techno Ryowa Ltd. 27,000 505,316
Tobu Railway Co. Ltd. (warrants) (a) 2,250 421,875
Tohoku Telecommunications
Construction Co. Ltd. 20,000 100,338
Tokyo Kososushi Co. Ltd. 29,000 284,161
Tokyo Securities Co. Ltd. 150,000 604,086
Tokyo Style Co. Ltd. 50,000 759,394
Toshiba Chemical Corp. 91,000 753,466
Toshiba Corp. 500,000 3,630,395
Toshoku Co. Ltd. 93,000 470,217
Towa Pharmaceutical Co. Ltd. 11,000 517,368
Toyo Communication Equipment Ltd. 60,000 1,117,045
Uni Charm Corp. Ord. 11,000 247,906
Wako Electric Co. Ltd. 30,000 723,139
Yamaha Corp. 100,000 1,597,178
Yamanouchi Pharmaceutical Co. Ltd. 40,000 893,636
Yoshinoya D&C Co. Ltd. Ord. 70 1,111,166
124,985,799
KOREA (SOUTH) - 5.0%
Boram Bank 37,130 553,201
Boram Securities Co. Ltd. 25,000 457,427
Cheil Investment Finance (a) 30,000 595,961
Coryo Securities (a) 100,000 1,816,637
Daewoo Electronics (a) 41,200 549,226
Daewoo Electronics (New) (a) 2,050 26,122
Daeyu Securities 71,820 1,182,685
Dong Ah Construction
Industries Co. Ltd. 21,277 853,694
Hanil Development Co. (a) 48,141 1,176,549
Hanshin Securities Co. Ltd. 466 10,414
Kia Motors Corp. GDR (a)(b) 71,500 1,698,125
Kolon Industries, Inc. (a) 197 6,269
Miwon Co. Ltd. 26,806 770,740
Namsung Corp. 53,560 1,063,990
Nong Shim Co. (a) 26,857 975,788
Sam Yang Co. Ltd. (warrants) (a) 300 45,000
Ssangyong Cement Co. 19,712 607,989
Ssangyong Investment & Securities Co. Ltd. 47,061 971,788
Tong Yang Investment &
Finance Co. Ltd. 47,999 928,426
Tong Yang Securities Co. Ltd. 21,012 340,520
Yukong Ltd. 26,504 997,602
Yukong Ltd. (new) 3,175 115,356
15,743,509
MALAYSIA - 9.0%
Affin Holdings BHD 415,000 783,866
Berjaya Simger BHD 187,000 168,512
Berjaya Sports Toto BHD 1,738,000 3,624,752
CHG Industries BHD 176,000 277,029
DCB Holdings BHD 284,000 804,643
DCB Holdings BHD (warrants) (a) 125,000 134,776
General Lumber Fabric & Building BHD 155,000 240,315
Genting BHD 247,000 2,128,598
Genting International 1,176,000 1,893,360
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
MALAYSIA - CONTINUED
Golden Pharos BHD 112,000 $ 197,446
Leader Universal Holdings BHD 250,000 673,881
Lion Land BHD 2,325,000 2,515,986
Malaya Glass BHD (a) 50,000 157,403
Metacorp BHD 137,000 347,723
Multi-Purpose Holdings BHD 200,000 267,585
New Straits Times Press BHD 350,000 1,101,820
Pacific & Orient BHD (a) 274,000 749,356
Petronas Gas BHD (a) 175,000 592,228
Petronas Gas BHD (warrants) (a) 136,000 237,615
Phileo Allied BHD 300,000 1,263,158
Public Bank BHD (For. Reg.) 1,108,000 1,962,027
Resorts World BHD 332,000 1,619,990
Rothmans of Pall Mall Malaysia BHD 200,000 1,479,587
Sungei Way Holdings BHD 200,000 672,897
Sungei Way Holdings BHD (warrants) (a) 62,500 73,783
Sunway Building Technology 135,000 361,240
Tan Chong Motor Holdings BHD 2,332,000 2,193,204
Tanjong PLC (Mlay Reg.) 37,000 93,182
Timah Langat BHD 80,000 409,247
Worldwide Holdings BHD (a) 1,000 1,181
YTL Corp. BHD 200,000 1,086,080
28,112,470
NEW ZEALAND - 0.6%
Brierley Investments Ltd. 2,153,738 1,674,154
U-Bix Business Machines Ltd. 105,858 66,945
1,741,099
PAKISTAN - 0.8%
Adamjee Insurance Ltd. 149,400 461,092
Bank of Punjab (a) 42,900 33,852
National Development Leasing Corp. 609,871 329,881
Pakistan International Airlines (a) 272,250 70,960
Pakistan State Oil Co. Ltd. 141,336 1,459,840
Pakistan Suzuki Motors Ltd. (a) 52,000 41,146
2,396,771
PHILIPPINES - 2.7%
Aboitiz Equity Ventures, Inc. (a) 1,700,000 323,529
Ayala Corp. Class B 336,000 342,330
Ayala Land, Inc. Class B 1,280,375 1,476,788
Benpress Holdings Corp. GDR (a) 126,842 729,342
Filinvest Land, Inc. ORD (a) 1,875,000 504,614
JG Summit Holdings, Inc. Class B 2,450,000 687,620
Manila Mining Corp. Class B 26,635,000 71,683
Megaworld Properties & Holdings, Inc. (a) 750,000 374,856
Meralco Class B 350,000 2,610,534
Metro Pacific, Inc. Class B 750,000 108,131
Oriental Petroleum & Mineral Corp.
Class B (a) 14,399,991 9,412
Oriental Petroleum & Mineral Corp.
Class B (rights) (a) 8,207,994 2,209
Philex Mining Corp. (a) 2,389,000 275,548
SM Prime Holdings, Inc. (a) 536,900 144,494
Universal Robina Corp. 1,540,600 636,734
8,297,824
SINGAPORE - 4.4%
Bukit Sembawang Estates Ltd. 35,000 747,525
Clipsal Industries Ltd. 1,100,000 2,695,000
Courts Singapore Ltd. 890,000 1,258,840
Development Bank of Singapore Ltd.
(For. Reg.) 21,000 240,594

SHARES VALUE (NOTE 1)
Far East-Levingston Shipbuilding Ltd. 200,000 $ 862,801
First Capital Corp. Ltd. 252,000 680,792
Hotel Properties Ltd. (warrants) (a) 90,000 79,562
Marco Polo Developments Ltd. 745,000 895,686
Parkway Holdings Ltd. (warrants) (a) 550,000 700,141
Robinson & Co. Ltd. 95,000 403,112
United Industrial Corp. Ltd. 900,000 801,980
United Overseas Bank Ltd.:
(For. Reg.) 150,000 1,315,417
(warrants) (a) 263,151 986,351
United Overseas Land Ltd. 850,000 1,526,874
United Overseas Land Ltd. (warrants) (a) 501,000 368,487
13,563,162
SRI LANKA - 1.0%
Associated Motorways Ltd. 13,500 11,881
Ceylon Tea Services Ltd. 215,000 336,397
Development Finance Corp. of Ceylon (a) 286,577 1,692,671
Distilleries Co. of Sri Lanka 2,542,000 335,586
John Keells Holdings Ltd. GDR (b) 70,000 455,000
Kelani Tyres Ltd. (Loc. Reg.) (a) 279,600 73,824
National Development Bank 47,000 202,230
3,107,589
TAIWAN (FREE CHINA) - 0.7%
Yageo Corp. GDR (a)(b) 210,236 2,154,919
THAILAND - 7.2%
Asia Fiber Co. PCL (For. Reg.) 283,700 180,378
Asia Securities Trading (For. Reg.) 255,200 699,734
Ban Chang Group PCL (For. Reg.) (a) 1,500,150 596,126
Bangchak Petroleum PCL (For. Reg.) (a) 750,000 1,058,017
Bangkok Metropolitan Bank PCL
(For. Reg.) 1,019,033 1,012,352
Bangkok Steel Industry Co. Ltd.:
(For. Reg.) 50,600 54,792
(rights) (a) 250,000 72,025
Central Pattana PCL (For. Reg.) 100,000 357,640
Dhana Siam Finance & Securities PCL
(For. Reg.) 42,000 201,947
Eastern Star Real Estate Co. Ltd.
(For. Reg.) (a) 1,137,200 474,492
Finance One PCL (For. Reg.) 245,000 1,509,040
First Bangkok City Bank PCL (For. Reg.) 500,000 437,115
Five Star Property Co. Ltd. (For. Reg.) 200,000 715,279
Goodyear (Thailand) Ltd. 23,600 219,448
International Engineering PCL
(For. Reg.) 81,000 386,251
Kiatnakin Finance & Securities PCL:
(For. Reg.) 376,000 1,157,957
(warrants) (a) 7,600 -
Krisda Mahanakorn Co. PCL (For. Reg.) 188,500 346,439
Kr Precision PCL (a):
(For. Reg.) 140,600 1,016,857
(Loc. Reg.) 5,700 39,865
Krung Thai Bank (For. Reg.) 200,110 795,192
Land & House PCL (For. Reg.) 145,000 2,339,360
Lanna Lignite PCL (For. Reg.) 90,000 650,904
MDX PCL (For. Reg.) 200,000 363,600
Padaeng Industry Co. Ltd. (For. Reg.) (a) 460,000 379,297
Phatra Thanakit PCL (For. Reg.) 60,400 472,831
Pizza PCL:
(For. Reg.) 54,000 150,209
(warrants) (a) 21,100 13,625
Precious Shipping Ltd. (For. Reg.) 113,800 682,845
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
THAILAND - CONTINUED
Quality Houses Co. Ltd. (For. Reg.) 68,100 $ 300,381
SCF Finance and Securities Co. Ltd.
(rights) (a) 3,703 -
Saha Union Corp. Ltd. (For. Reg.) 547,363 652,529
Siam Cement PCL (For. Reg.) 5,000 272,601
Siam City Bank PCL (For. Reg.) 500,000 635,804
Siam City Credit Finance and
Securities Co. Ltd. (rights) (a) 2,941 -
Siam Panich Leasing Ltd. (For. Reg.) 350,000 465,925
Thai German Ceramic Industry Co. Ltd.
(For. Reg.) 302,500 853,467
Thai Military Bank Ltd. (For. Reg.) 76,200 299,773
Thai Petrochemical Industry (For. Reg.) 263,000 378,850
Thai President Food Ltd. (For. Reg.) 28,000 198,053
Thai Storage Battery PCL (For. Reg.) 344,200 1,060,024
United Communication Industry PCL
(For. Reg.) 75,000 947,745
United Foods Co. Ltd. (For. Reg.) 114,200 80,550
22,529,319
UNITED KINGDOM - 0.2%
Rowe Evans Investments PLC 438,369 748,270
TOTAL COMMON STOCKS
(Cost $300,041,740) 290,387,682
NONCONVERTIBLE PREFERRED STOCKS - 0.2%
KOREA (SOUTH) - 0.2%
Dongbu Construction Co. Ltd. 10,910 129,754
Hanshin Securities Co. Ltd. 23,320 313,920
Kolon Industries, Inc. 9,882 158,856
TOTAL NONCONVERTIBLE PREFERRED STOCKS
(Cost $1,045,317) 602,530
CLOSED-END INVESTMENT COMPANIES - 1.9%
INDIA - 0.3%
Himalayan Fund NV ISI (a) 67,299 $ 868,157
Himalayan Fund NV ISI (warrants) (a) 13,459 6,730
874,887
INDONESIA - 0.2%
Indonesia Development Fund Ltd. (SG) 70,000 518,000
SINGAPORE - 0.3%
Singapore SESDAQ Fund Ltd. (a) 50,000 875,000
TAIWAN (FREE CHINA) - 0.1%
R.O.C. Taiwan Fund (SBI) (a) 52,500 505,313
THAILAND - 1.0%
Kamrai Tawee Capital Fund (For. Reg.) 947,900 800,432
Ruang Khao Unit Trust (For. Reg.) 2,000,200 1,152,509
Thai Prime Fund 75,000 1,125,000
3,077,941
TOTAL CLOSED-END INVESMENT COMPANIES
(Cost $5,196,607) 5,851,141
CORPORATE BONDS - 1.5%
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (C)
CONVERTIBLE BONDS - 1.2%
HONG KONG - 0.3%
Lai Fung Overseas Finance Ltd.
euro 5.5%, 2/5/98 (d) - $500,000 $ 405,000
Stelux Holdings Ltd.
1 3/4%, 3/31/01 - CHF 2,000,000 655,521
1,060,521
INDONESIA - 0.7%
Inti Indorayon Utama PT
7%, 5/2/06 - 2,600,000 2,093,000
Modernland Realty Ltd.
6%, 10/20/03 - IDR 247,000 208,824
2,301,824
THAILAND - 0.2%
Kiatnakin Finance & Securities
euro 4%, 11/30/03 - 1,000,000 $ 690,000
TOTAL CONVERTIBLE BONDS 4,052,345
NONCONVERTIBLE BONDS - 0.3%
HONG KONG - 0.2%
HKR International Ltd.
6%, 6/26/00 - 5,063,100 540,279
THAILAND - 0.1%
Finance One PCL
3 3/4%, 3/15/01 (For. Reg.) - THB 818 22,459
Thai German Ceramic
Industry Co. Ltd.
3%, 7/08/99 - THB 666 196,138
218,597
TOTAL NONCONVERTIBLE BONDS 758,876
TOTAL CORPORATE BONDS
(Cost $6,170,394) 4,811,221
REPURCHASE AGREEMENTS - 3.3%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.88%, dated
10/31/95 due 11/1/95 $ 10,176,662 10,175,000
TOTAL INVESTMENTS IN SECURITIES - 100%
(Cost $322,629,058) $ 311,827,574
CURRENCY ABBREVIATIONS
IDR - Indonesian rupiah
CHF - Swiss franc
THB - Thai baht
LEGEND
1. Non-income producing
2. 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 $7,603,513 or 2.4% of net
assets.
3. Principal amount is stated in United States dollars unless otherwise
noted.
4. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $258,142,965 and $417,900,522, respectively.
The fund participated in the bank borrowing program. The maximum loan and
the average daily loan balances during the period for which loans were
outstanding amounted to $8,540,000 and $4,671,688, respectively. The
weighted average interest rate was 6.1% (see Note 6 of Notes to Financial
Statements).
INCOME TAX INFORMATION
At October 31, 1995, the aggregate cost of investment securities for income
tax purposes was $323,024,371. Net unrealized depreciation aggregated
$11,196,797, of which $32,688,192 related to appreciated investment
securities and $43,884,989 related to depreciated investment securities.
At October 31, 1995, the fund had a capital loss carryforward of
approximately $10,407,000 all of which will expire on October 31, 2003.
For the period, interest and dividends from foreign countries were
$7,418,304 or $0.35 per share. Taxes accrued or paid to foreign countries
were $917,627 or $0.04 per share.
MARKET SECTOR DIVERSIFICATION (UNAUDITED)
As a Percentage of Total Value of Investment in Securities
Aerospace & Defense 0.9%
Basic Industries 8.2
Conglomerates 0.2
Construction & Real Estate 11.8
Durables 8.5
Energy 4.4
Finance 14.8
Health 1.4
Holding Companies 3.2
Industrial Machinery & Equipment 6.6
Media & Leisure 5.5
Nondurables 7.0
Precious Metals 0.8
Repurchase Agreements 3.3
Retail & Wholesale 5.3
Services 1.8
Technology 11.0
Transportation 3.4
Utilities 1.9
100.0%
PACIFIC BASIN
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
OCTOBER 31, 1995

ASSETS

Investment in securities, at value (including repurchase agreements of $10,175,000) (cost $322,629,058) - $ 311,827,574
See accompanying schedule

Cash 17,125

Receivable for investments sold 8,497,400

Receivable for fund shares sold 740,554

Dividends receivable 811,228

Interest receivable 165,864

Redemption fees receivable 39

TOTAL ASSETS 322,059,784

LIABILITIES

Payable for investments purchased $ 2,377,533

Payable for fund shares redeemed 1,472,966

Accrued management fee 218,257

Other payables and accrued expenses 356,113

TOTAL LIABILITIES 4,424,869

NET ASSETS $ 317,634,915

Net Assets consist of:

Paid in capital $ 339,411,057

Distributions in excess of net investment income (67,351
)

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions (10,897,267
)

Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies (10,811,524
)

NET ASSETS, for 21,349,709 shares outstanding $ 317,634,915

NET ASSET VALUE and redemption price per share ($317,634,915 (divided by) 21,349,709 shares) $14.88

Maximum offering price per share (100/97.00 of $14.88) $15.34

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED OCTOBER 31, 1995

INVESTMENT INCOME $ 6,690,016
Dividends

Interest 1,346,680

8,036,696

Less foreign taxes withheld (917,627
)

TOTAL INCOME 7,119,069

EXPENSES

Management fee $ 3,097,739
Basic fee

Performance adjustment 86,567

Transfer agent

Fees 1,511,728

Redemption fees (10,810
)

Accounting fees and expenses 243,546

Non-interested trustees' compensation 5,845

Custodian fees and expenses 449,157

Registration fees 90,662

Audit 43,974

Legal 21,312

Interest 13,953

Miscellaneous 6,302

Toal expenses before reductions 5,559,975

Expense reductions (231,426 5,328,549
)

NET INVESTMENT INCOME 1,790,520

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

Investment securities (10,062,827
)

Foreign currency transactions 3,639 (10,059,188
)

Change in net unrealized appreciation (depreciation) on:

Investment securities (70,780,567
)

Assets and liabilities in foreign (20,949 (70,801,516
currencies ) )

NET GAIN (LOSS) (80,860,704
)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ (79,070,184
)

OTHER INFORMATION $94,810
Sales charges paid to FDC

Deferred sales charges withheld $10,008
by FDC

Accounting fees paid to FSC $242,212

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1995 1994

<TABLE>
<CAPTION>
<S> <C> <C>
Operations $ 1,790,520 $ 227,067
Net investment income

Net realized gain (loss) (10,059,188) 95,892,182

Change in net unrealized appreciation (depreciation) (70,801,516) (23,604,018)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (79,070,184) 72,515,231

Distributions to shareholders - (256,048)
From net investment income

In excess of net investment income (583,259) (2,801,167)

From net realized gain (52,235,883) (6,809,163)

TOTAL DISTRIBUTIONS (52,819,142) (9,866,378)

Share transactions 535,543,498 965,069,943
Net proceeds from sales of shares

Reinvestment of distributions 51,819,678 9,613,028

Cost of shares redeemed (691,649,929) (977,332,983)

Redemption fees 278,855 -

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS (104,007,898) (2,650,012)

TOTAL INCREASE (DECREASE) IN NET ASSETS (235,897,224) 59,998,841

NET ASSETS 553,532,139 493,533,298
Beginning of period

End of period (including distributions in excess of net investment income of $67,351 $ 317,634,915 $ 553,532,139
and $352,101, respectively)

OTHER INFORMATION 34,934,955 51,298,442
Shares
Sold

Issued in reinvestment of distributions 3,265,306 566,134

Redeemed (44,583,739) (52,364,846)

Net increase (decrease) (6,383,478) (500,270)

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED OCTOBER 31,

SELECTED PER-SHARE DATA 1995 1994 E 1993 1992 1991 D

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 19.96 $ 17.48 $ 12.00 $ 13.15 $ 12.89

Income from Investment Operations .07 C .10 .20 .08 C .02 C
Net investment income

Net realized and unrealized gain (loss) (3.12) 2.78 5.39 (1.23) .40

Total from investment operations (3.05) 2.88 5.59 (1.15) .42

Less Distributions - (.01) (.11) - (.16)
From net investment income

In excess of net investment income (.02) (.11) - - -

From net realized gain (2.02) (.28) - - -

Total distributions (2.04) (.40) (.11) - (.16)

Redemption fees added to paid in capital .01 - - - -

Net asset value, end of period $ 14.88 $ 19.96 $ 17.48 $ 12.00 $ 13.15

TOTAL RETURN A, B (15.87)% 16.88% 47.06% (8.75)% 3.37%

RATIOS AND SUPPLEMENTAL DATA $ 317,635 $ 553,532 $ 493,533 $ 116,277 $ 95,051
Net assets, end of period (000 omitted)

Ratio of expenses to average net assets 1.32% 1.54% 1.59% 1.84% 1.88%
F

Ratio of net investment income to average net assets .44% .04% .15% .65% .12%

Portfolio turnover rate 65% 88% 77% 105% 143%

A TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE.
B 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.)
C NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
D AS OF NOVEMBER 1, 1991 THE FUND DISCONTINUED THE USE OF
EQUALIZATION ACCOUNTING.
E EFFECTIVE NOVEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION
93-2, "DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT
PRESENTATION OF INCOME, CAPITAL
GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES."
AS A RESULT, NET INVESTMENT INCOME PER SHARE MAY REFLECT CERTAIN
RECLASSIFICATIONS RELATED
TO BOOK TO TAX DIFFERENCES.
F FMR VOLUNTARILY AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES
DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE
RATIO WOULD HAVE BEEN
HIGHER.

</TABLE>

SOUTHEAST ASIA
PERFORMANCE: THE BOTTOM LINE

SOUTHEAST ASIA -5.00% 39.46%

SOUTHEAST ASIA (INCL. 3% SALES CHARGE) -7.85% 35.27%

Morgan Stanley Far East ex-Japan
Free Index -7.54% 52.02%

Average Pacific Region Fund -10.49% n/a

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
April 19, 1993. For example, if you invested $1,000 in a fund that had a 5%
return over the past year, the value of your investment would be $1,050.
You can compare the fund's returns to the performance of the Morgan Stanley
Far East ex-Japan Free index, a broad measure of the performance of stocks
in the Far East region, excluding Japan. The index is weighted by each
country's market capitalization (or the total value of its outstanding
shares). To measure how the fund's performance stacked up against its
peers, you can compare it to the average Pacific region fund, which
reflects the performance of 34 funds with similar objectives tracked by
Lipper Analytical Services over the past 12 months. These benchmarks
include reinvested dividends and capital gains, if any, and exclude the
effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIOD ENDED PAST 1 LIFE OF
OCTOBER 31, 1995 YEAR FUND

SOUTHEAST ASIA -5.00% 14.01%

SOUTHEAST ASIA (INCL. 3% SALES CHARGE) -7.85% 12.65%

Morgan Stanley Far East ex-Japan
Free Index -7.54% 17.95%

Average Pacific Region Fund -10.49% n/a

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
Fidelity SoutheaMorgan Stanley E
04/19/93 9700.00 10000.00
04/30/93 9651.50 10378.31
05/31/93 10078.30 10975.91
06/30/93 9835.80 10687.54
07/31/93 9826.10 10760.98
08/31/93 10543.90 11661.43
09/30/93 10873.70 12024.42
10/31/93 12842.80 14239.20
11/30/93 13240.50 14143.38
12/31/93 15992.99 17581.63
01/31/94 14696.78 16380.67
02/28/94 14004.83 15439.89
03/31/94 12221.33 13760.40
04/30/94 12533.20 14408.66
05/31/94 13069.22 15023.00
06/30/94 12299.30 14355.17
07/31/94 12952.27 15156.89
08/31/94 14141.27 16391.33
09/30/94 14131.52 16127.43
10/31/94 14238.73 16440.91
11/30/94 12845.07 14875.07
12/31/94 12513.71 14507.62
01/31/95 11198.01 12951.63
02/28/95 12162.86 14260.59
03/31/95 12318.79 14329.01
04/30/95 12309.04 14193.40
05/31/95 13712.45 15922.73
06/30/95 13702.71 15683.30
07/31/95 14053.56 15930.93
08/31/95 13507.79 15172.95
09/30/95 13683.21 15436.24
10/31/95 13527.28 15201.74

Let's say you invested $10,000 in Fidelity Southeast Asia Fund on April 19,
1993, when the fund started. By October 31, 1995, the value of your
investment would have grown to $13,527 - a 35.27% increase on your initial
investment. That compares to $10,000 invested in the Morgan Stanley Far
East ex-Japan Free index, which would have grown to $15,202 over the same
period - a 52.02% increase.

An interview with Allan Liu, Portfolio Manager of Fidelity Southeast Asia
Fund
Q. HOW DID THE FUND PERFORM, ALLAN?
A. We've seen some improvement in the Southeast Asian markets during recent
months, and the fund's performance reflects that. The fund outpaced both
its peers and its benchmark. For the 12 months ended October 31, 1995, the
fund returned -5.00%. This was better than the Morgan Stanley Far East
ex-Japan Free Index, which returned -7.54% and better than the average
Pacific region fund, which returned -10.49%, according to Lipper Analytical
Services.
Q. THE YEAR GOT OFF TO A ROCKY START . . .
A. Yes, and from the end of 1994 through April of this year most Southeast
Asian markets suffered a serious setback. That was especially true in
January when many investors became concerned that the economic crisis in
Mexico - set off by the devaluation of the Mexican peso - might repeat
itself in other emerging markets across the globe. What followed was a
large outflow of money from the Southeast Asian markets as many investors
questioned whether or not these countries would be forced to follow suit.
In some cases, a lack of investor confidence caused central banks in
Southeast Asia to raise their domestic interest rates in an effort to
support their own currencies. That had a fairly negative impact on the
markets.
Q. YET OVER THE PAST SIX MONTHS, MANY OF THE REGION'S MARKETS HAVE
PERFORMED BETTER. WHAT CHANGED?
A. It's important to remember that markets in this part of the world are
extremely sensitive to changes in interest rates, investor confidence and
fund flows. One positive that helped these markets was the fact that after
a while, interest rates started to come down again. And generally speaking,
there is a high correlation between the region's currencies and the U.S.
dollar. And as the dollar strengthened, so did many regional currencies,
effectively eliminating the need to raise interest rates higher.
Q. CAN YOU TELL US HOW INDIVIDUAL MARKETS PERFORMED OVER THE PAST SIX
MONTHS?
A. Sure. Prospective interest rate cuts in the United States and improving
sentiment toward China helped to fuel the Hong Kong market. But Thailand,
too, is sensitive to changes in U.S. interest rates, and the Thai market
performed poorly. There, the positive effect of lower interest rates was
more than offset by political transition as a new coalition government took
control. Malaysian stocks suffered from concerns over a widening current
account deficit and rising inflation. The balance of the markets in the
region were generally flat to down, as investors remained on the sidelines
due to a lack of major market-moving news.
Q. WHAT HELPED THE FUND PERFORM BETTER THAN THE AVERAGE?
A. It's difficult to say for sure, but I suspect that it came down to
individual stock selection, rather than market selection. One good example
is Indonesian cigarette manufacturer Sampoerna, the fund's second largest
holding as of October 31, 1995. The company recently reported that net
profits for the first six months of the year were up more than 50%. As a
result, the stock rose and made a significant contribution to the fund. The
company has been well positioned in the premium cigarette market and gained
market share in the low tar segment. It also has achieved high sales growth
through expanding capacity and price increases. Hutchison Whampoa, which is
a Hong Kong-based conglomerate, was the fund's largest holding at the end
of the period and was up more than 19% during the past year. The company
has had strong property earnings and also owns container terminals and
telecommunications operations. In addition to its Hong Kong container
terminals, it operates container terminals in China, which I believe could
have tremendous long-term growth potential. Finally, two additional
Hong-Kong property companies, Sun Hung Kai Properties and Cheung Kong
Holdings, gained from improved earnings prospects and expectations of
declining U.S. interest rates.
Q. HAVE YOU FOUND ANY WAYS TO PLAY THE OPENING OF MAINLAND CHINA?
A. Yes, through the addition of Hong Kong-based Goldlion. This menswear
wholesaler is experiencing explosive sales growth in mainland China. And,
its new tobacco division also could do well in the Chinese market, with its
smoking population exceeding 300 million people.
Q. HOW HAVE THE FUND'S KOREAN HOLDINGS FARED?
A. In the third quarter of 1995, the Korean market performed well due to
more moderate economic growth and a slowdown in capital investment that is
expected to improve the country's current account balance. One standout was
Korean-based Samsung Electronics, currently the world's largest dynamic
random-access memory (DRAM) manufacturer. Its higher-than-expected sales
and earnings were due to high volume and prices. The company has a
competitive edge over Japanese DRAM producers due to the lower costs. At
the end of the period, the fund had a heavier weighting - relative to its
benchmark in Korean stocks.
Q. WERE THERE ANY STOCKS THAT DISAPPOINTED?
A. Malaysian Airlines Systems shares were negatively affected by a recent
plane crash, despite better-than-expected operating margins. I continued to
underweight Malaysian holdings in general throughout the period, compared
to the benchmark, because their relative valuations were high and there
were concerns about inflation and widening current account deficits. But
after a period of market consolidation in the fall, more Malaysian stocks
began to look attractive from a valuation standpoint. As a result, I have
recently found good buying opportunities among high-quality stocks. One
example is Berjaya Sports Toto, a number forecast operator that is
benefiting from growing gambling demand in Malaysia.
Q. SOME BELIEVE THAT THAILAND WILL CONTINUE TO BE CHALLENGED BY ECONOMIC
AND POLITICAL UNCERTAINTY. WHAT'S YOUR VIEW?
A. I don't share the same concerns, and Thailand holdings accounted for
23.5% of the fund's holdings at the end of the period. I'm not particularly
worried about the country's economy, which I believe is strong. I regard
its relatively high rate of inflation as a short-term problem caused
primarily by food price increases. As a result, I have continued to
overweight the Thai market. Two of my favorites in this area are Thai banks
Krung Thai Bank and Bangkok Bank. When I bought these stocks, they were
attractively priced and could perform well with improving operational
efficiency. Also, these companies help serve as a proxy for the growth of
the Thailand economy, which is growing 8%-9% per year.
Q. WHAT WILL YOUR STRATEGY BE OVER THE NEXT SIX MONTHS?
A. I expect Hong Kong and Thailand to continue to play an important role in
my strategy going forward. I expect that investors will look at Hong Kong
as a proxy for investing in China. While some have been concerned about
inflation in China, there have been encouraging indications that the
country will experience a "soft landing," in which growth is moderate and
inflation is low. I also think that there could be renewed interest in
Thailand. While there has been some recent political uncertainty of late,
it is fairly common for Thailand's coalition government to change on
average less than every two years. What we've learned over time is that
change in government hasn't had any significant impact on Thailand's
economic growth.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER,
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.

FUND FACTS
GOAL: long-term growth of capital by investing
mainly in equity securities of Southeast Asian
issuers. The fund does not anticipate investing

in Japan
START DATE: April 19, 1993
SIZE: as of October 31, 1995, more than
$649 million
MANAGER: Allan Liu, since 1993; manager,
various funds for non-U.S. investors; analyst,
Southeast Asian markets, 1987-1990; joined
Fidelity in 1987
(checkmark)
ALLAN LIU'S OUTLOOK FOR SOUTHEAST ASIAN MARKETS:
"It's very hard to say what we'll see over the next six
months. From a fundamental viewpoint, we are seeing
more and more values arising in Southeast Asian
equity markets. From an economic standpoint, growth
is still quite good. Some countries - like Malaysia and
the Philippines - are showing signs of overheating,
but I don't believe they are in danger of collapsing.
Interest rates might have to rise a bit in these
countries and credit may need to be tightened, but I
don't think it's the end of the world.
"In general, there's still a lack of interest in these
markets from overseas investors on the back of the
Mexican crisis and some macroeconomic issues. But
given time, investors may give these markets a
second look."
(solid bullet) Major shifts: Finance, the fund's largest sector
concentration grew to 27.9% of investments at the
end of the period, from 15.6% six months earlier.
Transportation, meanwhile, dropped to 4.3% as of
October 31, 1995, from 10.2% six months earlier.
SOUTHEAST ASIA
INVESTMENT CHANGES

GEOGRAPHIC DIVERSIFICATION
AS OF OCTOBER 31, 1995

United States 3.0%
Row: 1, Col: 1, Value: 3.0
Row: 1, Col: 2, Value: 23.5
Row: 1, Col: 3, Value: 8.9
Row: 1, Col: 4, Value: 3.4
Row: 1, Col: 5, Value: 1.3
Row: 1, Col: 6, Value: 16.8
Row: 1, Col: 7, Value: 8.0
Row: 1, Col: 8, Value: 7.1
Row: 1, Col: 9, Value: 28.0
Row: 1, Col: 10, Value: 0.0
Thailand 23.5%
Hong Kong 28.0%
Indonesia 7.1%
Singapore 8.9%
Philippines 3.4%
Other 1.3%
Korea (South) 8.0%
Malaysia 16.8%
AS OF APRIL 30, 1995
United States 4.4%
Row: 1, Col: 1, Value: 4.4
Row: 1, Col: 2, Value: 18.7
Row: 1, Col: 3, Value: 17.3
Row: 1, Col: 4, Value: 3.7
Row: 1, Col: 5, Value: 1.2
Row: 1, Col: 6, Value: 13.9
Row: 1, Col: 7, Value: 12.8
Row: 1, Col: 8, Value: 8.300000000000001
Row: 1, Col: 9, Value: 19.7
Hong Kong 20.0%
Thailand 18.7%
Indonesia 8.3%
Singapore 17.0%
Korea (South) 12.8%
Philippines 3.7%
Malaysia 13.9%
Other 1.2%
ASSET ALLOCATION
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Stocks 97.0 95.4

Bonds 0.0 0.2

Short-term investments 3.0 4.4

TOP TEN STOCKS
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Hutchison Whampoa Ltd. Ord. 4.1 4.0
(Hong Kong, Electrical Equipment)

Sampoerna Hanjaya Mandala (For. Reg.) 3.7 3.7
(Indonesia, Tobacco)

HSBC Holdings PLC 3.4 1.1
(Hong Kong, Banks)

Samsung Electronics Co. Ltd. (vtg.) 3.0 3.1
(Korea (South), Electronics)

Sun Hung Kai Properties Ltd. 2.3 3.1
(Hong Kong, Real Estate)

Development Bank of Singapore 2.2 2.6
Ltd. (For. Reg.)
(Singapore, Banks)

Krung Thai Bank (For. Reg.) 2.1 1.0
(Thailand, Banks)

Goldlion Holdings 1.9 0.0
(Hong Kong, Apparel Stores)

Malaysian Airlines Systems BHD 1.9 2.8
(Malaysia, Air Transportation)

Cheung Kong Holdings Ltd. 1.8 1.3
(Hong Kong, Real Estate)

TOP TEN MARKET SECTORS
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Finance 27.9 15.6

Utilities 17.0 15.8

Construction & Real Estate 14.0 16.9

Nondurables 5.9 5.3

Technology 5.6 4.6

Industrial Machinery & Equipment 5.3 6.3

Transportation 4.3 10.2

Media & Leisure 4.2 5.9

Energy 2.5 1.8

Retail & Wholesale 2.4 1.9

SOUTHEAST ASIA
INVESTMENTS OCTOBER 31, 1995

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 96.9%
SHARES VALUE (NOTE 1)
CHINA (PEOPLES REP) - 1.3%
Huaneng Power International, Inc.
Class N sponsored ADR (a) 495,250 $ 8,233,531
HONG KONG - 28.0%
Bank of East Asia 400,000 1,409,853
Cheung Kong Holdings Ltd. 2,100,000 11,842,769
China Light & Power Co. Ltd. 1,711,000 9,117,897
Citic Pacific Ltd. Ord. 980,000 3,061,193
Consolidated Electric Power Asia Ltd. 4,443,000 8,993,694
Dah Sing Financial Holdings Ltd. 920,000 2,082,444
Dao Heng Bank Group Ltd. 921,000 3,377,226
First Pacific Co. Ltd. 5,298,705 6,099,682
Goldlion Holdings 22,220,000 12,645,740
Great Eagle Holdings Ltd. 900,000 2,467,890
Guangnan Holdings 11,069,000 3,543,489
Guangzhou Investment Co. Ltd. 12,000,000 2,467,890
HKR International Ltd. 1,600,000 1,386,572
HSBC Holdings PLC 1,524,786 22,187,527
Hang Seng Bank 502,000 4,204,274
Harbour Ring International Holdings Ltd.
(warrants) (a) 333 4
Henderson Investment Ltd. (warrants) (a) 164,000 8,697
Henderson Land Development Co. Ltd. 100,000 598,864
Hong Kong & China Gas Co. Ltd. 2,125,000 3,449,452
Hong Kong Electric Holdings Ord. 1,860,000 6,327,267
Hong Kong Telecommunications Ltd. 3,800,000 6,635,365
Hopewell Holdings Ltd. 1,000,000 630,554
Hutchison Whampoa Ltd. Ord. 4,880,000 26,889,139
Hysan Development Co. Ltd. 2,080,000 5,300,014
New World Development Co. 780,000 3,036,747
New World Infrastructure Ltd. 1,300 2,287
New World Infrastructure Ltd. (b) 800,000 1,407,267
Sun Hung Kai Properties Ltd. 1,908,000 15,239,222
Swire Pacific Ltd. Class A 1,204,000 9,032,375
Varitronix International Ltd. 1,932,000 3,685,926
Wharf Holdings Ltd. (b) 400,000 1,350,355
Wing Hang Bank Ltd. 800,000 2,576,540
Wo Kee Hong Holdings 3,000,000 593,691
181,651,906
INDONESIA - 7.1%
Astra International PT (For. Reg.) 500,000 1,001,762
Bank Dagang Nas Indonesia PT 500,000 445,839
Bank Danamon PT (For. Reg.) 500,000 726,553
Bank International Indonesia PT Ord. 121,500 425,331
Bimantara Citra (For. Reg.) (a) 327,500 252,367
Gudang Garam PT Perusahaan 692,500 6,022,407
Indocement Tungaal Prakarsa PT
(For. Reg.) 200,000 739,763
Indofood Sukses Makmur (For. Reg.) 400,000 1,849,407
Indosat (Indonesia Satellite)
sponsored ADR 264,000 8,745,000
SUCACO PT 350,000 863,057
Sampoerna Hanjaya Mandala
(For. Reg.) 2,600,000 24,042,291
Semen Gresik (For. Reg.) 400,000 1,039,191
46,152,968
KOREA (SOUTH) - 7.9%
Daelim Industrial (RFD) (a) 8,344 173,390
Hyundai Engineering and Construction
Co. Ltd. (RFD) 1,410 73,342
Hyundai Motor Co. GDR (a) (b) 68,000 1,173,000
Korea Electric Power Corp. 244,510 10,745,544

SHARES VALUE (NOTE 1)
Korea First Securities Co. Ltd. 1 $ 15
Korea Mobile Telecommunications Corp. 8,700 7,707,654
Pohang Iron & Steel Co. Ltd. 63,055 5,982,374
Samsung Electronics Co. Ltd.:
(bonus issued 3/95) (a) 20,698 4,558,077
GDS (b) 5,000 323,500
GDS (non-vtg.) (a) 5,343 343,822
GDS (vtg.) (a) 104 11,918
(New) (a) 1,646 356,026
(vtg.) 88,464 19,714,929
Samsung Engineering & Construction Co.
(vtg.) GDR (a) 22 352
51,163,943
MALAYSIA - 16.8%
Affin Holdings BHD 1,600,000 3,022,135
Arab Malaysian Corp. BHD 291,000 979,065
Berjaya Sports Toto BHD 5,475,833 11,420,330
Cement Manufacturers Sarawak 620,000 2,927,693
Commerce Asset Holding BHD 666,000 3,302,154
Crest Petroleum BHD (a) 200,000 391,933
EON (Edaran Otomobil Nasional) BHD 830,000 6,532,218
Econstates BHD 172,000 204,403
Ekran BHD Ord. 100,000 253,812
Genting BHD 810,000 6,980,423
Hong Leong Industries BHD 710,000 3,380,620
Jaya Tiasa Holdings BHD 95,000 284,112
Kian Joo Can Factory BHD 78,000 306,936
Kwong Yik Bank BHD 690,000 1,425,480
Magnum Corp. BHD 660,000 1,121,968
Malaysian Airlines Systems BHD 4,591,000 12,555,809
Malaysain Banking BHD 432,000 3,484,899
Malaysian Assurance Alliance BHD 720,000 2,918,249
Malaysian Pacific Industries Ord. 150,000 404,329
Multi-Purpose Holdings BHD 900,000 1,204,132
Nylex Malaysia SDN BHD 1,111,000 3,257,039
Oyl Industries BHD 23,000 172,868
Pacific & Orient BHD (a) 415,000 1,134,973
Petronas Gas BHD (a) 761,000 2,575,347
Petronas Gas BHD (warrants) (a) 627,000 1,095,477
Press Metal BHD 10,000 24,791
Prime Utilities BHD 330,000 3,051,648
Public Bank BHD (For. Reg.) 2,800,000 4,958,190
RJ Reynolds BHD 500,000 1,023,119
Resorts World BHD 1,990,000 9,710,182
Time Engineering BHD 2,800,000 7,161,830
United Engineers BHD 820,000 5,098,278
Wembley Industries Holdings BHD (a) 550,000 805,116
YTL Corp. BHD 977,000 5,305,499
YTL Corp. BHD (warrants) (a) 180,000 701,230
109,176,287
PHILIPPINES - 3.4%
Benpress Holdings Corp. (a):
GDR 80,520 462,990
GDR (b) 79,200 475,200
Filinvest Land, Inc. Ord. (a) 864,000 232,526
House of Investments, Inc. 4,398,000 963,806
Megaworld Properties & Holdings, Inc. (a) 4,000,000 1,999,231
Meralco Class B 526,232 3,924,991
Metropolitan Bank & Trust Co. 185,839 3,429,555
Petron Corp. 4,418,125 1,953,419
Philippine Long Distance Telephone Co.
sponsored ADR 90,000 5,051,250
Philippine National Bank (a) 60 505
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
PHILIPPINES - CONTINUED
SM Prime Holdings, Inc. (a) 5,151,200 $ 1,386,329
Universal Robina Corp. 3,925,800 1,622,543
William Lines, Inc. (a) 3,000,000 888,120
22,390,465
SINGAPORE - 8.9%
Cerebos Pacific Ltd. 66,000 410,750
City Developments Ltd. 400,400 2,477,723
Cycle & Carriage Ltd. 41,000 365,347
DBS Land Ltd. 200,000 591,231
Development Bank of Singapore Ltd.
(For. Reg.) 1,250,000 14,321,075
Ipco International Ltd. 200,000 748,000
Keppel Corp. Ltd. 630,000 5,168,317
Malayan Credit Ltd. 100,000 183,168
Overseas Chinese Banking Corp. 40,000 469,590
Overseas Union Bank Ltd. (For. Reg.) 1,600,000 9,957,567
Singapore International Airlines Ltd. 300,000 2,779,349
Singapore Press Holdings Ltd.
(For. Reg.) 526,800 8,233,579
Singapore Technologies Industrial
Corp. Ltd. 800,000 1,454,031
Ssangyong Cement Ltd. 1,075,000 2,919,378
Straits Steamship Co. Ltd. Ord. 205,000 574,116
United Overseas Bank Ltd. (For. Reg.) 826,000 7,243,564
57,896,785
THAILAND - 23.5%
Advanced Information Services
(For. Reg.) 596,000 9,852,414
Asia Securities Trading (For. Reg.) 760,000 2,083,847
Ban pu Coal (For. Reg.) (a) 70,000 1,680,111
Bangkok Bank Ltd. 1,137,300 11,750,368
Bangkok Expressway PCL (For. Reg.) (a) 1,320,000 2,137,493
Bangkok Metropolitan Bank PCL
(For. Reg.) 2,828,250 2,809,706
Dhana Siam Finance & Securities PCL:
(For. Reg.) 1,567,900 7,538,879
(For. Reg.) (warrants) (a) 231,300 1,948,563
Dynamic Eastern Finance Thailand 1991
Co. Ltd. (For. Reg.) (a) 605,100 1,298,446
Ekachart Finance & Securities Co. Ltd.
(For. Reg.) (warrants) (a) 20,280 32,638
Electricity Generating PCL (For. Reg.) (a) 1,575,860 5,385,415
Finance One PCL:
(For. Reg.) 964,200 5,938,844
(For. Reg.) (warrants) (a) 350,350 2,283,227
General Finance & Securities PCL
(For. Reg.) 600,000 2,670,376
Hemeraj Land & Development PCL
(For. Reg.) (a) 73,500 318,359
Industrial Finance Corp. of Thailand (a):
(For. Reg.) 400,000 1,311,345
Series F (warrants) (a) 700,000 980,529
Krung Thai Bank (For. Reg.) 3,395,110 13,491,397
National Finance & Securities PCL:
(For. Reg.) 994,200 4,543,334
(warrants) (a) 160,000 95,371
National Petrochemical Co. (a) 1,100,000 2,600,835
Nava Finance & Securities PCL
(For. Reg.) 800,100 2,209,694
Nithipat Capital PCL 480,000 1,468,707
Nithipat Capital PCL (warrants) (a) 80,000 -
One Holding PCL (For. Reg.) 1,169,100 3,042,958

SHARES VALUE (NOTE 1)
PTT Exploration & Production (For. Reg.) 658,000 $ 5,961,613
Phatra Thanakit PCL (For. Reg.) 627,500 4,912,279
Prime Finance & Securities (For. Reg.)
(warrants) (a) 46,666 75,103
Property Perfect PCL:
(For. Reg.) 258,400 2,053,646
(For. Reg.) (warrants) (a) 66,800 122,106
Quality Houses Co. Ltd. (For. Reg.) 156,600 690,745
Sammakorn Co. Ltd. (For. Reg.) 89,200 262,301
Seamico Securities PCL (For. Reg.) (a) 364,500 919,760
Securities One PCL:
(For. Reg.) 268,200 2,408,631
(warrants) (a) 44,700 -
Shinawatra Computer & Communication
PCL (For. Reg.) 190,000 4,650,904
Siam Cement PCL (For. Reg.) 50,000 2,726,008
Siam Commercial Bank PCL (For. Reg.) 147,500 1,723,227
TPI Polene PCL (For. Reg.) 540,000 3,647,924
Telecomasia Corp. PCL (For. Reg.) (a) 2,127,300 6,297,789
Thai Airways International Ltd.
(For. Reg.) 261,000 469,313
Thai Farmers Bank PCL 630,000 5,207,232
Thai Farmers Bank PCL (For. Reg.)
(warrants) (a) 610,000 1,345,321
Thai Military Bank Ltd. (For. Reg.) 2,054,860 8,083,892
Thai Petrochemical Industry (For. Reg.) 753,300 1,085,123
Thai Telephone & Telecommunication PCL
(For. Reg.) (a) 1,516,300 10,243,226
United Communication Industry PCL
(For. Reg.) 100,000 1,263,660
Univest Land PCL (For. Reg.) 692,100 1,106,975
152,729,634
TOTAL COMMON STOCKS
(Cost $586,860,398) 629,395,519
NONCONVERTIBLE PREFERRED STOCKS - 0.1%
KOREA (SOUTH) - 0.1%
Samsung Electronics Co. Ltd.
(bonus issued 3/95)
(Cost $333,903) 3,818 457,571
CONVERTIBLE BONDS - 0.0%
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (C)
KOREA (SOUTH) - 0.0%
Shin Won Corp. euro
0.5%, 12/31/08
(Cost $350,000) - $ 350,000 346,500
REPURCHASE AGREEMENTS - 3.0%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.88%, dated
10/31/95 due 11/1/95 $ 19,560,194 19,557,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $607,101,301) $ 649,756,590
LEGEND
1. Non-income producing
2. 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 $4,729,322 or 0.7% of net
assets.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $599,225,620 and $716,864,396, respectively.
INCOME TAX INFORMATION
At October 31, 1995, the aggregate cost of investment securities for income
tax purposes was $611,360,411. Net unrealized appreciation aggregated
$38,396,179, of which $77,826,554 related to appreciated investment
securities and $39,430,375 related to depreciated investment securities.
At October 31, 1995, the fund had a capital loss carryforward of
approximately $28,533,000 all of which will expire on October 31, 2003.
For the period, interest and dividends from foreign countries were
$12,776,206 or $0.27 per share. Taxes accrued or paid to foreign countries
were $1,125,389 or $0.02 per share.
MARKET SECTOR DIVERSIFICATION (UNAUDITED)
As a Percentage of Total Value of Investments in Securities
Aerospace & Defense 0.8%
Basic Industries 1.9
Construction & Real Estate 14.0
Durables 1.9
Energy 2.5
Finance 27.9
Holding Companies 2.2
Industrial Machinery & Equipment 5.3
Media & Leisure 4.2
Nondurables 5.9
Repurchase Agreements 3.0
Retail & Wholesale 2.4
Services 1.1
Technology 5.6
Transportation 4.3
Utilities 17.0
100.0%
SOUTHEAST ASIA
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
OCTOBER 31, 1995

ASSETS

Investment in securities, at value (including repurchase agreements of $19,557,000) (cost $607,101,301) - $ 649,756,590
See accompanying schedule

Cash 42,447

Receivable for investments sold 2,383,548

Receivable for fund shares sold 826,220

Dividends receivable 734,390

Interest receivable 1,458

Redemption fees receivable 659

TOTAL ASSETS 653,745,312

LIABILITIES

Payable for investments purchased $ 222,317

Payable for fund shares redeemed 2,759,076

Accrued management fee 341,888

Other payables and accrued expenses 553,987

TOTAL LIABILITIES 3,877,268

NET ASSETS $ 649,868,044

Net Assets consist of:

Paid in capital $ 633,694,104

Undistributed net investment income 5,866,341

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions (32,345,179
)

Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies 42,652,778

NET ASSETS, for 46,822,525 $ 649,868,044
shares outstanding

NET ASSET VALUE, offering price $13.88
and redemption price per share ($649,868,044 (divided by) 46,822,525 shares)

Maximum offering price per share $14.31
(100/97.00 of $13.88)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED OCTOBER 31, 1995

INVESTMENT INCOME $ 12,662,952
Dividends

Interest 1,784,084

14,447,036

Less foreign taxes withheld (1,125,389
)

TOTAL INCOME 13,321,647

EXPENSES

Management fee $ 5,078,673
Basic fee

Performance adjustment (1,128,697
)

Transfer agent

Fees 1,982,805

Redemption fees (39,432
)

Accounting fees and expenses 350,985

Non-interested trustees' compensation 6,122

Custodian fees and expenses 907,276

Registration fees 76,448

Audit 55,056

Legal 28,269

Miscellaneous 7,602

TOTAL EXPENSES 7,325,107

NET INVESTMENT INCOME 5,996,540

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

Investment securities (20,531,025
)

Foreign currency transactions (521,246 (21,052,271
) )

Change in net unrealized appreciation (depreciation) on:

Investment securities (40,275,024
)

Assets and liabilities in foreign currencies (9,081 (40,284,105
) )

NET GAIN (LOSS) (61,336,376
)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ (55,339,836
)

OTHER INFORMATION $805,224
Sales charges paid to FDC

Accounting fees paid to FSC $349,043

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1995 1994

<TABLE>
<CAPTION>
<S> <C> <C>
Operations $ 5,996,540 $ 1,794,901
Net investment income

Net realized gain (loss) (21,052,271) 6,125,880

Change in net unrealized appreciation (depreciation) (40,284,105) 8,854,396

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (55,339,836) 16,775,177

Distributions to shareholders - (2,133,538)
From net investment income

In excess of net investment income - (1,834,307)

TOTAL DISTRIBUTIONS - (3,967,845)

Share transactions 315,850,011 1,349,887,034
Net proceeds from sales of shares

Reinvestment of distributions - 3,847,389

Cost of shares redeemed (437,770,027) (1,048,177,751)

Redemption fees 1,393,801 7,700,655

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS (120,526,215) 313,257,327

TOTAL INCREASE (DECREASE) IN NET ASSETS (175,866,051) 326,064,659

NET ASSETS

Beginning of period 825,734,095 499,669,436

End of period (including under (over) distribution of net investment income of $5,866,341 $ 649,868,044 $ 825,734,095
and $(1,366,477), respectively)

OTHER INFORMATION
Shares

Sold 23,184,715 92,561,106

Issued in reinvestment of distributions - 259,959

Redeemed (32,874,037) (74,053,904)

Net increase (decrease) (9,689,322) 18,767,161

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.

</TABLE>

FINANCIAL HIGHLIGHTS
YEARS ENDED APRIL 19, 1993
OCTOBER 31, (COMMENCEMENT OF
OPERATIONS) TO

SELECTED PER-SHARE DATA 1995 1994 B OCTOBER 31, 1993

<TABLE>
<CAPTION>
<S> <C> <C> <C>
Net asset value, beginning of period $ 14.61 $ 13.24 $ 10.00

Income from Investment Operations

Net investment income .15 .04 .01

Net realized and unrealized gain (loss) (.91) 1.23 3.22

Total from investment operations (.76) 1.27 3.23

Less Distributions - (.04) -
From net investment income

In excess of net investment income - (.03) -

Total distributions - (.07) -

Redemption fees added to paid in capital .03 .17 .01

Net asset value, end of period $ 13.88 $ 14.61 $ 13.24

TOTAL RETURN A, C (5.00)% 10.87% 32.40%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 649,868 $ 825,734 $ 499,669

Ratio of expenses to average net assets 1.10% 1.47% 2.00% D,
E

Ratio of net investment income to average net assets .90% .22% .45% E

Portfolio turnover rate 94% 157% 14% E

A TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
B EFFECTIVE NOVEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION
93-2, "DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION
OF INCOME, CAPITAL
GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES."
AS A RESULT, NET INVESTMENT INCOME PER SHARE MAY REFLECT CERTAIN
RECLASSIFICATIONS
RELATED TO BOOK TO TAX DIFFERENCES.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
D FMR VOLUNTARILY AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES
DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE
RATIO WOULD HAVE BEEN
HIGHER.
E ANNUALIZED.

</TABLE>

NOTES TO FINANCIAL STATEMENTS
For the period ended October 31, 1995

a SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Canada Fund, Fidelity Emerging Markets Fund, Fidelity Europe Fund,
Fidelity Europe Capital Appreciation Fund, Fidelity Japan Fund, Fidelity
Latin America Fund, Fidelity Pacific Basin Fund and Fidelity Southeast Asia
Fund are funds of Fidelity Investment Trust. 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. Each fund is authorized to issue an unlimited number of
shares. The following summarizes the significant accounting policies of the
funds:
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. Korean
equity securities that have reached the limit for aggregate foreign
ownership and for which premiums to the local exchange prices may be paid
by foreign investors are valued 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. Equity
securities that have reached the limit for aggregate foreign ownership may
trade at a premium to the local share price. If the broker-quoted premium
is not readily available as a result of limited share activity, the
securities are valued at the last sale price of the local shares in the
principal market in which such securities are normally traded.
FOREIGN CURRENCY TRANSLATION. The accounting records of the funds 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.
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. The effects of changes in foreign
currency exchange rates on investments in securities are included with the
net realized and unrealized gain or loss on investment securities.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, each fund is not subject to U.S. federal
income taxes to the extent that it distributes substantially all of its
taxable income for its fiscal year. Each fund may be subject to foreign
taxes on income, gains on investments or currency repatriation. Each fund
accrues such taxes as applicable based upon its current interpretation of
the tax rules and regulations that exist in markets in which it invests.
The schedules of investments include information regarding income taxes
under the caption "Income Tax Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date,
except certain dividends from foreign securities where the ex-dividend date
may have passed, are recorded as soon as the funds are informed of the
ex-dividend date. Interest income, which includes accretion of original
issue discount, is accrued as earned. Investment income is recorded net of
foreign taxes 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 recorded on the
ex-dividend date. Certain foreign currency gains (losses) are taxable as
ordinary income and, therefore, increase (decrease) taxable ordinary income
available for distribution.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences, which may result in distribution
reclassifications, are primarily due to differing treatments for futures
transactions, foreign currency transactions, passive foreign investment
companies (PFIC), capital loss carryforwards, and losses deferred due to
wash sales and excise tax regulations. Certain funds 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 the per-share allocation between net investment income and realized
and unrealized gain (loss). Undistributed net investment income (loss) and
accumulated undistributed net realized gain (loss) on investments and
foreign currency transactions may include temporary book and tax basis
differences which will reverse in a subsequent period. Any taxable income
or gain remaining at fiscal year end is distributed in the following year.
REDEMPTION FEES. Shares held in Emerging Markets, Latin America and
Southeast Asia less than 90 days are subject to a redemption fee equal to
1.50% of the proceeds of the redeemed shares. Shares held in Japan less
than 90 days are subject to a redemption fee equal to 1.00% of the proceeds
of the redeemed shares. In December 1994, the Board of Trustees of Pacific
Basin approved a 1.00% redemption
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
REDEMPTION FEES - CONTINUED
fee on shares held less than 90 days which is effective for shares
purchased after April 15, 1995. In May 1995, the Board of Trustees of
Canada, Europe and Europe Capital Appreciation approved a 1.00% redemption
fee on shares held less than 90 days which is effective for shares
purchased on or after September 1, 1995. In December 1995, The Board of
Trustees of Canada and Japan approved a 1.50% redemption fee on shares held
less than 90 days which is effective on shares purchased on or after
February 1, 1996. 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 those funds and their 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 the
trade date. Gains and losses on securities sold are determined on the basis
of identified cost.
b OPERATING POLICIES.
FORWARD FOREIGN CURRENCY CONTRACTS. The funds may use foreign currency
contracts to facilitate transactions in foreign securities and to manage
the funds' currency exposure. Contracts to buy generally are used to
acquire exposure to foreign currencies, while contracts to sell are used to
hedge the funds' investments against currency fluctuations. Also, a
contract to buy or sell can offset a previous contract. 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.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the funds, along with other affiliated
entities of Fidelity Management & Research Company (FMR), may transfer
uninvested cash balances into one or more joint trading accounts. These
balances are invested in one or more repurchase agreements that mature in
60 days or less from the date of purchase, and are collateralized by U.S.
Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The funds, through their custodian, receive delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. FMR is responsible for
determining that the value of these underlying securities remains at least
equal to the resale price.
FUTURES CONTRACTS AND OPTIONS. The funds may use futures and options
contracts to manage their exposure to the stock and bond markets and to
fluctuations in interest rates and currency values. Buying futures, writing
puts, and buying calls tend to increase the funds' exposure to the
underlying instrument. Selling futures, buying puts, and writing calls tend
to decrease the funds'
exposure to the underlying instrument, or hedge other fund investments.
Futures contracts involve, to varying degrees, risk of loss in excess of
the futures variation margin reflected in the Statement of Assets and
Liabilities. The underlying face amount at value is shown in the schedule
of investments under the caption "Futures Contracts." This amount reflects
each contract's exposure to the underlying instrument at period end. Losses
may arise from changes in the value of the underlying instruments, 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 funds 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
funds use these securities to increase or decrease their 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 funds are 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. Restricted securities (excluding 144A issues) at the end of the
period are shown under the caption "Other Information" at the end of each
applicable fund's schedule of investments.
c PURCHASES AND SALES OF INVESTMENTS.
Information regarding purchases and sales of securities (other than
short-term securities) and the market value of futures contracts opened and
closed is included under the caption "Other Information" at the end of each
applicable fund's schedule of investments.
d FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As each fund's investment adviser, FMR receives a monthly
basic fee that is calculated on the basis of a group fee rate plus a fixed
individual fund fee rate applied to the average net assets of each 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 .2700% to .5200% for the period. In the event
that these rates were lower than the contractual rates in effect during the
period, FMR
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
MANAGEMENT FEE - CONTINUED
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 each
fund.
The basic fee for Canada, Europe, Europe Capital Appreciation, Japan,
Pacific Basin, and Southeast Asia is subject to a performance adjustment
(up to a maximum of (plus/minus) .20%) based on each fund's investment
performance as compared to the appropriate index over a specified period of
time.
For the period, each fund's management fee was equivalent to the following
annualized rates expressed as a percentage of average net assets after the
performance adjustment, if applicable:
Canada .72%
Emerging Markets .77%
Europe Capital Appreciation .85%
Europe .80%
Japan .66%
Latin America .77%
Pacific Basin .79%
Southeast Asia .59%
SUB-ADVISER FEE. FMR, on behalf of the funds, 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. and FIIAL Japan a fee based on costs incurred for either service.
SALES LOAD. Fidelity Distributors Corporation (FDC), an affiliate of FMR,
is the general distributor of the funds. FDC is paid a 3% sales charge on
sales of shares of each fund.
Shares of Canada, Europe, and Pacific Basin purchased before October 12,
1990 are subject to a 1% deferred sales charge upon redemption.
The amount received by FDC for sales charges and deferred sales charges is
shown under the caption "Other Information" on each applicable fund's
Statement of Operations.
TRANSFER AGENT FEE. Fidelity Service Co. (FSC), an affiliate of FMR, is the
funds' transfer, dividend disbursing and shareholder servicing agent.
During the period November 1, 1994 to December 31, 1994, FSC received fees
based on the type, size, number
of accounts and the number of transactions made by shareholders. Effective
January 1, 1995, the Board of Trustees approved a revised transfer agent
contract pursuant to which FSC receives account fees and asset-based fees
that vary according to account size and type of account. FSC pays for
typesetting, printing and mailing of all shareholder reports, except proxy
statements.
ACCOUNTING FEE. FSC maintains the funds' accounting records. The fee is
based on the level of average net assets for the month plus out-of-pocket
expenses. The accounting and pricing fees paid to FSC are shown under the
caption "Other Information" on each fund's Statement of Operations.
BROKERAGE COMMISSIONS. Certain funds placed a portion of their portfolio
transactions with brokerage firms which are affiliates of FMR. The
commissions paid to these affiliated firms are shown under the caption
"Other Information" at the end of each applicable fund's schedule of
investments.
e TRANSACTIONS WITH AFFILIATED COMPANIES.
An affiliated company is a company in which the fund has ownership of at
least 5% of the voting securities. Information regarding affiliated
companies is included under the caption "Other Information" at the end of
each applicable fund's schedule of investments.
f BANK BORROWINGS.
Each fund is permitted to have bank borrowings for temporary or emergency
purposes to fund shareholder redemptions. Each fund has established
borrowing arrangements with certain banks. Under the most restrictive
arrangement, each 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 are shown under the caption "Other
Information" at the end of each applicable fund's schedule of investments.
g EXPENSE REDUCTIONS.
FMR directed certain portfolio trades to brokers who paid a portion of
certain funds' expenses. For the period, the expenses of Canada, Emerging
Markets, Europe Capital Appreciation, and Japan were reduced by $3,730,
$2,769, $2,438, and $750, respectively, under this arrangement.
In addition, FMR voluntarily agreed to reimburse a portion of operating
expenses for certain funds. For the period, the reimbursement reduced
expenses for Canada, Europe, and Pacific Basin by $197,748, $475,027, and
$231,426, respectively.
h CONCENTRATION OF RISK.
The relatively large investments of Emerging Markets, Latin America,
Pacific Basin and Southeast Asia 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
consequences of political, social or economic changes in these markets may
have disruptive effects on the market prices of these funds' 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 Canada Fund,
Fidelity Emerging Markets Fund,
Fidelity Europe Fund,
Fidelity Japan Fund,
Fidelity Pacific Basin Fund:
We have audited the accompanying statements of assets and liabilities of
Fidelity Investment Trust: Fidelity Canada Fund, Fidelity Emerging Markets
Fund, Fidelity Europe Fund, Fidelity Japan Fund, and Fidelity Pacific Basin
Fund, including the schedules of portfolio investments, as of October 31,
1995, and the related statements 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 periods indicated.
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 audits 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 October 31, 1995 by correspondence with the
custodians 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 Canada Fund, Fidelity Emerging
Markets Fund, Fidelity Europe Fund, Fidelity Japan Fund, and Fidelity
Pacific Basin Fund as of October 31, 1995, the results of their operations
for the year then ended, the changes in their net assets for each of the
two years in the period then ended, and the financial highlights for each
of the periods indicated, in conformity with generally accepted accounting
principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
December 20, 1995
REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees of Fidelity Investment Trust and the Shareholders of:
Fidelity Europe Capital Appreciation Fund,
Fidelity Latin America Fund,
Fidelity Southeast Asia Fund:
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments, 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 Europe Capital Appreciation Fund, Fidelity Latin America Fund and
Fidelity Southeast Asia Fund (funds of Fidelity Investment Trust ) at
October 31, 1995, the results of each of their operations for the period
then ended, and the changes in each of their 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 Investment Trust'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 at October 31, 1995 by correspondence
with the custodian and brokers and the application of alternative auditing
procedures where confirmations from brokers were not received, provide a
reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
Boston, Massachusetts
December 20, 1995

(2_FIDELITY_LOGOS)FIDELITY'S
BROADLY DIVERSIFIED INTERNATIONAL EQUITY
FUNDS
FIDELITY INTERNATIONAL GROWTH & INCOME FUND
FIDELITY DIVERSIFIED INTERNATIONAL FUND
FIDELITY INTERNATIONAL VALUE FUND
FIDELITY OVERSEAS FUND
FIDELITY WORLDWIDE FUND

ANNUAL REPORT
FOR THE YEAR ENDING
OCTOBER 31, 1995
AND
PROSPECTUS
DATED DECEMBER 30, 1995
CONTENTS

<TABLE>
<CAPTION>
<S> <C> <C>
MARKET RECAP A REVIEW OF WHAT HAPPENED IN WORLD MARKETS
DURING THE LAST YEAR.

INTERNATIONAL GROWTH & INCOME FUND PERFORMANCE
A-5 FUND TALK: THE MANAGER'S OVERVIEW
INVESTMENT CHANGES
A-8 INVESTMENTS
A-12 FINANCIAL STATEMENTS

DIVERSIFIED INTERNATIONAL FUND PERFORMANCE
A-15 FUND TALK: THE MANAGER'S OVERVIEW
INVESTMENT CHANGES
A-18 INVESTMENTS
A-22 FINANCIAL STATEMENTS

INTERNATIONAL VALUE FUND PERFORMANCE
A-25 FUND TALK: THE MANAGER'S OVERVIEW
A-27 INVESTMENT CHANGES
A-28 INVESTMENTS
A-31 FINANCIAL STATEMENTS

OVERSEAS FUND PERFORMANCE
A-34 FUND TALK: THE MANAGER'S OVERVIEW
INVESTMENT CHANGES
A-37 INVESTMENTS
A-42 FINANCIAL STATEMENTS

WORLDWIDE FUND PERFORMANCE
A-45 FUND TALK: THE MANAGER'S OVERVIEW
INVESTMENT CHANGES
A-48 INVESTMENTS
A-51 FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS A-53 NOTES TO THE FINANCIAL STATEMENTS

REPORT OF INDEPENDENT ACCOUNTANTS A-56 THE AUDITORS' OPINION

FIDELITY'S BROADLY DIVERSIFIED INTERNATIONAL P-1
EQUITY
FUNDS PROSPECTUS

</TABLE>

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
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (income) and capital gains (the profits the
fund earns when it sells securities that have grown in value). The 2% sales
charge was eliminated June 1, 1994.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED PAST 1 PAST 5 LIFE OF
OCTOBER 31, 1995 YEAR YEARS FUND

INTERNATIONAL GROWTH & INCOME 4.95% 44.79% 105.89%

INTERNATIONAL GROWTH & INCOME
(INCL. 2% SALES CHARGE) 2.85% 41.89% 101.77%

Morgan Stanley EAFE Index -0.37% 39.94% 98.47%

JP Morgan Global Government
Bond Index 15.36% 64.59% 129.04%

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 31, 1986. For example, if you invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment would
be $1,050. You can compare the fund's returns to the performance of the
Morgan Stanley EAFE index - a broad measure of the performance of stocks in
Europe, Australia, and the Far East. You can also compare the fund's
performance to the JP Morgan Global Traded Government Bond index - a broad
measure of bond performance in developed countries, including the United
States. These benchmarks include reinvested dividends and capital gains, if
any, and exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED PAST 1 PAST 5 LIFE OF
OCTOBER 31, 1995 YEAR YEARS FUND

INTERNATIONAL GROWTH & INCOME 4.95% 7.68% 8.51%

INTERNATIONAL GROWTH & INCOME
(INCL. 2% SALES CHARGE) 2.85% 7.25% 8.26%

Morgan Stanley EAFE Index -0.37% 6.95% 8.06%

JP Morgan Global Government
Bond Index 15.36% 10.48% 9.83%

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
International GrEurope, AustralJP Morgan Global
12/31/86 9800.00 10000.00 10000.00
01/31/87 10456.60 11091.44 10297.27
02/28/87 10917.20 11423.38 10417.34
03/31/87 11387.60 12359.45 10606.42
04/30/87 11828.60 13667.22 10615.67
05/31/87 11907.00 13667.17 10515.48
06/30/87 12024.46 13231.74 10469.90
07/31/87 12525.07 13208.62 10344.80
08/31/87 12868.62 14199.03 10457.90
09/30/87 12976.78 13975.49 10203.47
10/31/87 10259.33 11956.28 10770.71
11/30/87 9993.50 12135.62 11049.24
12/31/87 10616.00 12495.97 11424.65
01/31/88 10240.74 12719.07 11483.03
02/29/88 10704.88 13566.88 11588.48
03/31/88 11169.02 14401.06 11680.11
04/30/88 11465.28 14610.33 11625.84
05/31/88 11317.15 14141.98 11500.86
06/30/88 11188.77 13769.22 11398.38
07/31/88 11188.77 14201.21 11309.95
08/31/88 10635.75 13277.87 11229.75
09/30/88 11020.89 13858.05 11509.54
10/31/88 11662.79 15043.77 11962.76
11/30/88 11870.17 15939.87 12068.55
12/31/88 11843.60 16028.75 11995.89
01/31/89 12064.60 16310.76 11877.18
02/28/89 12104.79 16394.60 11857.65
03/31/89 12104.79 16072.84 11757.23
04/30/89 12406.15 16221.91 11950.87
05/31/89 12054.56 15339.38 11821.66
06/30/89 12094.74 15081.17 12090.48
07/31/89 13239.92 16974.95 12571.92
08/31/89 13059.10 16211.52 12199.93
09/30/89 13581.47 16949.99 12392.89
10/31/89 12928.51 16268.98 12552.27
11/30/89 13410.70 17086.82 12664.00
12/31/89 14108.23 17717.27 12811.84
01/31/90 13864.29 17058.04 12620.70
02/28/90 13376.40 15867.48 12484.41
03/31/90 13366.23 14214.47 12407.75
04/30/90 13335.74 14101.66 12359.19
05/31/90 14199.71 15710.68 12754.37
06/30/90 14646.95 15572.31 12985.15
07/31/90 15327.97 15791.65 13366.62
08/31/90 14016.76 14258.15 13262.42
09/30/90 12664.89 12271.07 13386.50
10/31/90 13935.44 14183.13 13915.46
11/30/90 13620.34 13346.50 14160.40
12/31/90 13652.86 13562.71 14317.95
01/31/91 14135.96 14001.39 14642.75
02/28/91 14934.13 15502.33 14657.03
03/31/91 14398.52 14571.68 14171.37
04/30/91 14619.06 14714.78 14370.50
05/31/91 14598.06 14868.32 14382.84
06/30/91 13894.41 13775.78 14190.79
07/31/91 14377.51 14452.61 14490.80
08/31/91 14325.00 14159.11 14791.96
09/30/91 14787.10 14957.10 15331.31
10/31/91 14692.58 15169.13 15482.81
11/30/91 14282.99 14460.97 15734.95
12/31/91 14750.26 15207.78 16530.10
01/31/92 14728.99 14882.94 16206.33
02/29/92 14750.26 14350.25 16159.15
03/31/92 14271.70 13402.90 16009.94
04/30/92 14899.14 13466.61 16143.15
05/31/92 15569.12 14368.01 16601.62
06/30/92 15420.24 13686.50 17054.38
07/31/92 14920.41 13336.22 17430.14
08/31/92 15186.28 14172.68 17893.86
09/30/92 14931.05 13892.81 17876.50
10/31/92 14133.45 13164.07 17430.02
11/30/92 14101.54 13287.94 17120.99
12/31/92 14257.46 13356.67 17282.76
01/31/93 14388.16 13355.03 17575.80
02/28/93 14780.27 13758.44 17859.02
03/31/93 15880.35 14957.71 18133.44
04/30/93 16762.59 16377.23 18463.61
05/31/93 17154.70 16723.11 18586.77
06/30/93 16925.97 16462.20 18596.37
07/31/93 17492.35 17038.46 18603.91
08/31/93 18407.26 17958.25 19154.58
09/30/93 18287.45 17554.02 19357.13
10/31/93 18788.48 18094.99 19347.20
11/30/93 18145.86 16513.30 19205.99
12/31/93 19258.98 17705.68 19402.72
01/31/94 20267.42 19202.61 19585.74
02/28/94 19905.70 19149.42 19370.62
03/31/94 18842.45 18324.63 19281.85
04/30/94 19094.56 19102.13 19266.42
05/31/94 19445.32 18992.46 19107.16
06/30/94 18973.99 19260.86 19334.06
07/31/94 19291.87 19446.09 19516.05
08/31/94 19478.21 19906.48 19465.90
09/30/94 19028.80 19279.52 19562.09
10/31/94 19226.10 19921.52 19854.68
11/30/94 18634.19 18964.09 19604.82
12/31/94 18705.99 19082.84 19650.41
01/31/95 18072.28 18349.76 20047.87
02/28/95 18196.76 18297.10 20564.83
03/31/95 19237.86 19438.31 21610.88
04/30/95 19588.67 20169.36 21955.44
05/31/95 19339.71 19928.93 22567.92
06/30/95 19384.98 19579.44 22708.90
07/31/95 20527.93 20798.38 22816.63
08/31/95 20290.29 20005.00 22182.45
09/30/95 20437.40 20395.70 22682.28
10/31/95 20177.12 19847.46 22903.80

Let's say you invested $10,000 in Fidelity International Growth & Income
Fund on December 31, 1986, when the fund started, and paid the 2% sales
charge. By October 31, 1995, the value of your investment would have grown
to $20,177 - a 101.77% increase on your initial investment. That compares
to $10,000 invested in the Morgan Stanley EAFE index, which would have
grown to $19,847 over the same period - a 98.47% increase. If you had put
$10,000 in the JP Morgan Global Government Bond index, it would have grown
to $22,904 - a 129.04% increase.

An interview with Richard Mace, Portfolio Manager of Fidelity International
Growth & Income Fund
Q. RICK, HOW HAS THE FUND PERFORMED?
A. For the 12 months ended October 31, 1995, the fund had a total return of
4.95%. Looking at performance, we can compare the fund's return to two
separate indexes, because the fund invests in both stocks and bonds -
keeping at least 25% invested in bonds - and no index tracks both
international stocks and bonds. First, the Morgan Stanley EAFE Index -
which tracks the performance of stocks in Europe, Australia and the Far
East - had a total return of -0.37% for the 12 months ended October 31,
1995. Second, the JP Morgan Global Government Bond Index, which tracks the
performance of government bonds in 13 developed countries including the
U.S., had a total return of 15.36% for the same 12 months.
Q. WHAT WERE THE MAJOR CONTRIBUTORS TO THE FUND'S PERFORMANCE?
A. As you can see from the index returns, it has been a better year for
international bonds than it has been for international stocks. The fund
beat the EAFE index return because of its substantial fixed-income
investments, and because of the relatively good performance of its equity
holdings. It lagged the JP Morgan index because the fund had a significant
investment in foreign stocks. In 1994, the opposite occurred: bonds
substantially underperformed stocks. Beyond these factors, the fund's
Japanese investments had the most meaningful impact on performance.
Specifically, the fund benefited from being relatively underweighted in
Japan during the first part of the year, when the Japanese market performed
poorly. I increased the fund's Japanese investments over the second part of
the year, a period when that market started to rebound, helping
performance. Stock selection in Japan also had a positive influence on the
fund's return.
Q. WHAT MADE JAPAN APPEALING?
A. There was a great deal of negative sentiment caused by the Kobe
earthquake, the subway nerve gas attack, a lack of consumer confidence,
political and banking scandals, and a weakening economy. This kind of
backdrop usually creates buying opportunities. Unfortunately, sometimes an
investor has to wait before sentiment changes. It clearly has taken longer
than I anticipated for an upturn in Japan.
Q. WHAT WERE SOME OF THE JAPANESE STOCKS THAT ATTRACTED YOUR ATTENTION?
A. Omron, a manufacturer of factory automation and control equipment was
one. The company benefited from strong worldwide
demand for its products, as electronic equipment companies were looking to
use automation to increase their manufacturing capacity. I also was
particularly fond of this investment because management strove to maximize
shareholder value, something relatively revolutionary in Japan. Omron
aggressively cut costs, restructuring its business, and generated free cash
flow. I believed that the company probably would share this cash in the
form of dividends, and may buy back shares - generally viewed as favorable
by existing shareholders because it tends to increase the value of the
stock. The Japanese government has indicated it may allow companies to do
so without severe tax implications.
Q. DO YOUR JAPANESE INVESTMENTS FOLLOW A PARTICULAR THEME?
A. It's important for me to repeat what I've said in the past, that I am a
bottom-up investor. I choose stocks one-by-one based on the prospects for
each company. That said, many of the fund's Japanese were companies whose
business should improve as the Japanese economy picks up. These included
electronics and computer companies, such as Hitachi, Mitsubishi Electric,
Canon and NEC; Ito-Yokado, a retailer; and Honda, the motorcycle and
automobile manufacturer that has benefited from strong new model sales, a
solid balance sheet and cost cutting.
Q. LET'S TAKE A LOOK AT WHAT MOVES MAY HAVE DETRACTED FROM PERFORMANCE . .
.
A. I cut back on some European cyclical stocks - those that rise and fall
with the economy - because business wasn't picking up. An example would be
EVC, a chemical company focused on the manufacture of PVC, a material used
to make plumbing components. The worldwide economic slowdown led me to
believe that chemical prices would fall, so I sold the stock. In addition,
by focusing on Japan, the fund missed out on other opportunities, including
those in Switzerland, Sweden and the United Kingdom. All of these markets
had good returns, but the fund was underweighted there. That's because I
found stock prices to be expensive in those areas. Instead, I focused on
Japan because that's where I found better value and I felt there was a
lower level of inherent risk.
Q. LET'S TURN TO THE FUND'S BOND PORTFOLIO. YOU MENTIONED IT'S BEEN A GOOD
YEAR FOR FIXED-INCOME INVESTMENTS.
A. Yes, you can see by the index return that international bonds have done
well. The fund's return from bonds, which was around 14% this year,
benefited from investments in Germany, New Zealand, France, Australia,
Sweden, the United Kingdom and Italy.
Q. WERE THERE ANY DISAPPOINTMENTS ON THE BOND FRONT?
A. Japanese fixed-income investments were among the best performing
securities in the world during the period; as news concerning Japan's
slowing economy spread, the bonds rallied. The fund missed out on this
move, because I was not invested in Japanese bonds. I felt the value of
Japanese stocks was superior to the value found in Japanese bonds. In
addition, I believed the attempts by the Japanese government and central
bank to stimulate the economy would have negative implications for bonds.
Real yields - yields adjusted for inflation - are unattractive by
historical standards, and the yen is one of the most overvalued currencies
in the world. I felt bonds in Europe offered better value in terms of real
yields, and that currencies there posed less of a risk.
Q. YOU'VE REPOSITIONED THE FUND'S BOND PORTFOLIO RECENTLY . . .
A. I've tried to broaden the currency exposure of the bond portion of the
portfolio by adding positions in Australia, Italy and Sweden. When
evaluating a fixed-income investment, I must consider the value of the bond
and the value of the currency, looking for the best risk/reward profile. In
addition, in previous reports I had mentioned the fund's occasional use of
forward foreign currency contracts to hedge currency risk. During the year,
I reduced these contracts to a minimum, because they hadn't added much
value to the fund, and I don't foresee using them much going forward.
Q. WHAT SORT OF INVESTMENTS ARE YOU TARGETING IN NORTH AMERICA?
A. North America - Canada, specifically - has looked more attractive in
terms of valuations than much of Europe. I targeted nickel and aluminum
companies such as Falconbridge, Inco and Alcan because the supply/demand
situation looked positive for these non-ferrous metals. For most of the
year, the fund held a meaningful investment in Aluminum Co. of America -
Alcoa - considered an American stock, but one which received much of its
earnings and cash flow from its overseas business.
Q. LET'S TAKE A LOOK AT THE NEXT SIX MONTHS. WHAT'S YOUR OUTLOOK?
A. I believe that fixed-income is nearing the end of its solid run.
Economies around the world have weakened for some time, and central banks,
in general, are seeking to improve economic conditions; that's ordinarily
an early warning indicator for bonds. On the stock side, my belief is that
six or 12 months from now economic outlooks will improve and that earnings
estimates for companies outside the U.S. will improve. The key going
forward will be to select those company stocks that are best positioned to
benefit from an improving economy. It appears we're already seeing signs of
improvement in Japan, and the fund is positioned there accordingly. But a
key going forward will be to capitalize on improvements in business in
Europe over the next year.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER,
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.

FUND FACTS
GOAL: growth of capital and current income by
investing mainly in foreign stocks and bonds
START DATE: December 31, 1986
SIZE: as of October 31, 1995, more than
$903 million
MANAGER: Richard Mace, since 1994;
manager, Fidelity International Value Fund,
since 1994; co-manager, Fidelity Global
Balanced Fund, since January 1995, and February
1993 - December 1993; manager, Fidelity Select
Chemicals Portfolio and Fidelity Select Industrial
Materials Portfolio, 1992; Fidelity Select
Transportation Portfolio, 1989-1991; joined
Fidelity in 1987
(checkmark)
RICK MACE ON THE INTERNATIONAL INVESTING ENVIRONMENT:
"Looking around the world, the past year has offered a
mixed bag. In Europe, it appeared economies were
going to recover earlier in the year, but that didn't
happen. As a result, European cyclical stocks were
disappointing, but bonds there were positive
performers. On the other end of the spectrum, the
Chinese have tried to slow their economy to ease
inflation fears. This has muted demand for
commodities. In Japan, the economy has taken
longer than expected to reaccelerate, but it appears
to be on the right track.
"Surprising strength in the U.S. has kept most
investors focused on the U.S. at the expense of the
foreign markets. Competition for the investor dollar
becomes more difficult if that investor is getting great
returns at home. Many investors who believe that
foreign investing entails higher risk ask, `Why invest in
a foreign market when the U.S. is so strong?'
"I would answer by saying that about two-thirds of the
world's market capitalization - or the total value of
corporate assets - lies outside of the U.S. I believe an
investor is taking on risk by not investing overseas.
Investors tend to ignore non-U.S. markets when they
are not doing well. Just a few years ago, these markets
offered appealing returns, but they've been sluggish
over the recent past. That has led to some appealing
values that could offer solid returns when we see a
turnaround in foreign economies."
INTERNATIONAL GROWTH & INCOME
INVESTMENT CHANGES

GEOGRAPHIC DIVERSIFICATION
AS OF OCTOBER 31, 1995

Australia 3.6%
Canada 3.0%
United States 19.2%
Row: 1, Col: 1, Value: 19.2
Row: 1, Col: 2, Value: 11.4
Row: 1, Col: 3, Value: 39.7
Row: 1, Col: 4, Value: 6.9
Row: 1, Col: 5, Value: 5.8
Row: 1, Col: 6, Value: 10.4
Row: 1, Col: 7, Value: 3.0
Row: 1, Col: 8, Value: 3.6
United Kingdom 10.4%
France 5.8%
Other 11.4%
Germany 6.9%
Japan 39.7%
AS OF APRIL 30, 1995
Netherlands 5.1%
Denmark 3.0%
United States 9.7%
Row: 1, Col: 1, Value: 9.699999999999999
Row: 1, Col: 2, Value: 10.6
Row: 1, Col: 3, Value: 37.0
Row: 1, Col: 4, Value: 12.1
Row: 1, Col: 5, Value: 8.300000000000001
Row: 1, Col: 6, Value: 11.0
Row: 1, Col: 7, Value: 3.2
Row: 1, Col: 8, Value: 3.0
Row: 1, Col: 9, Value: 5.1
Canada 3.2%
Other 10.6%
United Kingdom 11.0%
France 8.3%
Germany 12.1%
Japan 37.0%
ASSET ALLOCATION
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Stocks and equity futures 61.5 63.9

Bonds 26.4 33.8

Short-term investments 12.1 2.3

TOP TEN STOCKS
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Omron Corp. 5.0 3.4
(Japan, Electrical Equipment)

Hitachi Ltd. 4.4 4.4
(Japan, Electronics)

Mitsubishi Electric Co. Ord. 3.1 2.7
(Japan, Electrical Equipment)

Ito-Yokado Co. Ltd. 1.9 3.5
(Japan, General Merchandise Stores)

Canon, Inc. 1.8 0.8
(Japan, Computers & Office Equipment)

British Petroleum PLC Ord. 1.7 1.8
(United Kingdom, Oil & Gas)

Sony Corp. 1.5 2.7
(Japan, Consumer Electronics)

TDK Corp. 1.4 0.0
(Japan, Electronics)

Nomura Securities Co. Ltd. 1.4 2.6
(Japan, Securities Industry)

Total SA sponsored ADR 1.3 0.7
(France, Oil & Gas)

TOP TEN MARKET SECTORS
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Technology 14.5 9.3

Industrial Machinery & Equipment 10.5 8.6

Basic Industries 6.6 8.4

Energy 5.1 5.2

Durables 4.6 9.6

Retail & Wholesale 4.0 4.5

Finance 3.1 4.1

Utilities 2.8 7.0

Media & Leisure 1.0 0.9

Health 0.9 2.4

INTERNATIONAL GROWTH & INCOME
INVESTMENTS OCTOBER 31, 1995

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 55.7%
SHARES VALUE (NOTE 1)
AUSTRALIA - 0.7%
BTR Nylex Ltd. 1,000 $ 2,715
QNI Ltd. 1,765,400 3,383,096
Western Mining Holdings Ltd. 440,000 2,817,315
6,203,126
AUSTRIA - 0.1%
Mayr Melnhof Karton AG 22,700 1,323,508
BRAZIL - 0.5%
Acesita Cia Acos Especiais Itabira Ord. 18,069,100 133,052
Coteminas PN 405,300 126,459
Duratex Corp. PN 4,800,000 234,634
Refrigeracao Parana SA 156,629,300 369,786
Telebras PN (Pfd. Reg.) 42,000,000 1,703,150
Telesp PN (Pfd. Reg.) 11,200,000 1,607,604
4,174,685
CANADA - 3.0%
AT Plastics, Inc. 74,900 633,684
Alcan Aluminium Ltd. 300,000 9,510,971
Barrick Gold Corp. 35,500 825,121
Canada Occidental Petroleum Ltd. 93,700 2,752,808
Canadian Pacific Ltd. Ord. 72,300 1,149,433
Falconbridge Ltd. 1,000,000 9,390,108
Inco Ltd. 51,600 1,775,009
Intertape Polymer Group, Inc. 47,300 1,380,829
27,417,963
DENMARK - 0.5%
International Service Systems AS,
Series B 40,000 820,438
Tele Danmark AS Class B 60,000 3,131,581
Unidanmark AS Class A 20,000 919,330
4,871,349
FINLAND - 1.1%
Kemira OY 199,800 1,680,871
Kemira OY sponsored ADR (b) 72,125 1,190,063
Valmet OY Class A 253,700 7,054,613
9,925,547
FRANCE - 3.4%
Accor SA 17,682 2,104,095
Alcatel Alsthom CGE 40,000 3,421,198
Axa SA 20,000 1,112,545
Eramet SA (b) 8,000 540,707
Generale des Eaux 25,491 2,372,895
Michelin SA Cie Generale des
Etablissements Class B 200,000 8,090,118
Pechiney International SA 30,000 1,566,820
Total SA sponsored ADR 400,000 12,350,000
31,558,378
GERMANY - 0.6%
Deutsche Bank AG 70,000 3,163,951
Veba AG (warrants) (a) 20,000 2,846,697
6,010,648
HONG KONG - 0.1%
Peregrine Investments Holdings Ltd. 1,000,000 1,274,042
Sun Hung Kai & Co. Ltd. 1,000 256
1,274,298
ITALY - 0.3%
Italcementi Fabbriche Ruinite Cemento
Spa, Bergamo 50,000 309,725

SHARES VALUE (NOTE 1)
Stet (Societa Finanziaria Telefonica) Spa
Ord. 600,000 $ 1,699,419
Telecom Italia Mobile Spa (a) 310,000 522,300
Telecom Italia Ord. 310,000 475,739
3,007,183
JAPAN - 33.9%
Acom Co. Ltd. 50,000 1,631,473
Aiwa Co. Ltd. 50,000 1,087,649
Amway Japan Ltd. 81,400 3,110,676
Bridgestone Corp. 100,000 1,391,407
Canon, Inc. 1,000,000 17,147,617
Citizen Watch Co. Ltd. Ord. 150,000 1,030,327
Daifuku Co. Ltd. 1,000 11,954
Daihatsu Motor Co. Ltd. 1,000 4,899
Daiwa Securities Co. Ltd. 450,000 5,291,265
Fuji Electric Co. Ltd. 694,000 3,352,526
Fuji Photo Film Co. Ltd. 350,000 8,676,694
Fujitsu Ltd. 300,000 3,586,302
Hitachi Ltd. 4,000,000 41,154,280
Hitachi Maxell Ltd. 1,000 15,580
Honda Motor Co. Ltd. 125,000 2,180,197
Hoya Corp. 72,000 2,116,506
Ito-Yokado Co. Ltd. 320,000 17,527,804
Izumi Co. Ord. 84,000 1,596,786
Kenwood Corp. 1,000 5,566
Kobe Steel (a) 1,100,000 2,888,639
Kokusai Securities Co. Ltd. 1,000 12,542
Konica Corp. 147,000 986,674
Kyocera Corp. 100,000 8,211,259
Kyocera Corp. (warrants) (a) 350 590,625
Matsushita Electric Industrial Co. Ltd. 600,000 8,524,815
Mazda Motor Corp. (a) 1,000 3,145
Mitsubishi Electric Co. Ord. 3,794,000 28,402,489
Mitsubishi Heavy Industries Ltd. 150,000 1,159,669
Mitsubishi Motors Corp. 1,000 8,348
Murata Manufacturing Co. Ltd. 68,000 2,392,043
NEC Corp. 600,000 7,936,897
Nichicon Corp. 440,000 5,949,733
Nifco, Inc. 102,000 1,209,348
Nintendo Co. Ltd. Ord. 14,000 1,031,601
Nippon Shokubai Co. Ltd. 200,000 1,748,077
Nissan Motor Co. Ltd. Ord. 101,000 682,867
Nitto Denko Corp. 600,000 9,583,068
Nomura Securities Co. Ltd. 700,000 12,826,417
Omron Corp. 2,000,000 46,837,490
Pioneer Electronic Corp. 1,000 15,384
Ricoh Co. Ltd. Ord. 500,000 5,389,251
Rohm Co. Ltd. (warrants) (a) 5,361 3,938,790
Sankyo Co. Ltd. 25,000 551,173
Sekisui Chemical Co. Ltd. 271,000 3,531,723
Shimamura Corp. 45,000 1,605,017
Shin-Etsu Chemical Co. Ltd. 50,000 1,023,958
Sony Corp. 310,000 13,972,858
Sumitomo Chemical Co. Ltd. 1,000 4,654
TDK Corp. 250,000 12,909,706
Taiyo Yuden Co. Ltd. 1,000 9,995
Takeda Chemical Industries Ltd. 1,000 14,110
Tokai Rika Denki Co. Ltd. 1,000 7,741
Toppan Printing Co. Ltd. 1,000 13,228
Toshiba Corp. 501,000 3,637,656
Toyoda Automatic Loom Works Ltd. 1,000 15,678
Uny Co. Ltd. 400,000 6,898,241
Wako Electric Co. Ltd. 80,000 1,928,372
Yamanouchi Pharmaceutical Co. Ltd. 250,000 5,585,224
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
JAPAN - CONTINUED
Yoshinoya D&C Co. Ltd. Ord. 76 $ 1,206,408
Zexel Corp. 1,000 5,997
314,170,418
KOREA (SOUTH) - 0.1%
Samsung Electronics Co. Ltd. (b):
GDR (partial dividend) 124 14,210
GDS (vtg.) 10,000 1,170,000
1,184,210
MALAYSIA - 0.0%
Tenega Nasional BHD 1,000 3,778
MEXICO - 0.0%
Telefonos de Mexico SA sponsored ADR
representing shares Ord. Class L 1,000 27,500
NETHERLANDS - 1.7%
AKZO NV Ord. 15,300 1,742,007
Heineken NV 2,000 354,812
KLM Royal Dutch Airlines Ord. 40,975 1,352,593
Koninklijke PPT Nederland 200,000 7,032,883
Philips Electronics NV (Bearer) 35,000 1,352,721
Vendex International NV 80,000 2,306,279
Vendex International NV (b) 57,000 1,643,224
15,784,519
NETHERLANDS ANTILLES - 0.9%
Schlumberger Ltd. 130,000 8,092,500
NEW ZEALAND - 0.2%
Brierley Investments Ltd. 2,000,000 1,554,650
NORWAY - 1.3%
Helikopter Services AS 100,000 1,252,911
Kverneland Gruppen AS 160,000 2,775,681
Saga Petroleum AS Class B 138,000 1,662,517
Smedvig AS 76,800 1,332,327
Transocean Drilling AS (a) 350,000 5,340,936
12,364,372
RUSSIA - 0.0%
Mosenergo AO sponsored ADR (a) (b) 51,000 446,250
SINGAPORE - 0.0%
Kim Engineering Holdings Ltd. 20,000 17,256
SOUTH AFRICA - 0.4%
Anglo American Corp. of
South Africa (Reg.) 20,000 1,137,844
Buffelsfontein Gold Mining Co. Ltd. ADR 76,300 314,738
Driefontein Consolidated Ltd.:
ADR 42,500 467,500
Ord. 75,500 843,547
Free State Consolidated Gold Mines Ltd.:
ADR 74,182 700,093
Ord. 25,578 238,440
Western Deep Levels Ltd. Ord. 14,700 411,104
4,113,266
SPAIN - 0.0%
Telefonica de Espana SA Ord. 5,000 63,115
SWEDEN - 1.1%
Electrolux AB 40,000 1,713,605
Esselte AB Class B Free shares 80,000 1,176,595
SKF AB Ord. 60,000 1,140,392

SHARES VALUE (NOTE 1)
Svedala Industri 50,000 $ 1,270,873
Volvo AB Class B 200,000 4,510,280
9,811,745
SWITZERLAND - 0.2%
Kuoni Reisen Holding AG Class B (Reg.) 915 1,457,237
UNITED KINGDOM - 3.7%
BET PLC Ord. 4,100,000 8,164,863
British Petroleum PLC Ord. 2,103,795 15,461,473
Cookson Group 1,000,000 4,630,865
Forte PLC 400,000 1,593,144
Telegraph PLC (The) 300,000 1,934,532
Tomkins PLC Ord. 200,000 788,670
WPP Group PLC 33,200 80,283
Wickes PLC 1,000,000 1,967,717
34,621,547
UNITED STATES OF AMERICA - 1.9%
Aluminum Co. of America 220,000 11,220,000
American Express Co. 50,000 2,031,250
Limited, Inc. (The) 30,000 551,250
RJR Nabisco Holdings Corp. 83,100 2,555,325
Reynolds Metals Co. 25,700 1,294,638
17,652,463
TOTAL COMMON STOCKS
(Cost $473,435,369) 517,131,511
NONCONVERTIBLE PREFERRED STOCKS - 0.1%
BRAZIL - 0.0%
COSIPA (CIA Sidurg Paulista) Class B (a) 130,000 194,696
ITALY - 0.1%
Fiat Spa 1,000 1,877
Italmobiliare Spa (Milano) 90,000 703,032
704,909
TOTAL NONCONVERTIBLE PREFERRED STOCKS
(Cost $1,227,511) 899,605
CONVERTIBLE BONDS - 0.1%
MOODY'S RATINGS PRINCIPAL
(UNAUDITED) (H) AMOUNT (C)
JAPAN - 0.1%
Matsushita Electric Works Co.
Ltd. 2.70%, 5/31/02
(Cost $1,063,866) - JPY 81,000,000 906,394
GOVERNMENT OBLIGATIONS (F) - 26.3%
ARGENTINA - 0.0%
Province of Chaco yankee
11 7/8%, 9/10/97 (e) - $ 200,000 206,000
AUSTRALIA - 2.9%
Commonwealth of Australia:
13%, 7/15/96 Aa2 AUD 10,250,000 8,196,581
13%, 7/15/00 Aa2 AUD 9,100,000 8,174,847
9 3/4%, 3/15/02 Aa2 AUD 12,600,000 10,140,090
26,511,518
GOVERNMENT OBLIGATIONS (F) - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (H) AMOUNT (C) (NOTE 1)
DENMARK - 0.6%
Danish Government Bullet
8%, 5/15/03 Aaa DKK 29,000,000 $ 5,430,364
FRANCE - 2.4%
French Government:
OAT 8 1/2%, 11/25/02 Aaa FRF 49,000,000 10,859,785
8 1/2%, 12/26/12 Aaa FRF 34,000,000 7,474,081
Principal Strips 0%,
10/25/25 Aaa FRF 225,000,000 4,233,940
22,567,806
GERMANY - 6.3%
Federal Republic of Germany:
8%, 7/22/02 Aaa DEM 19,300,000 15,102,680
6%, 6/20/16 Aaa DEM 30,700,000 19,095,829
Treuhandanstalt:
6 5/8%, 7/9/03 AAA DEM 12,200,000 8,814,936
7 1/2%, 9/9/04 Aaa DEM 20,000,000 15,152,096
58,165,541
ITALY - 1.0%
Italian Government
8 1/2%, 4/1/99 (d) - ITL 15,600,000 9,119,323
NEW ZEALAND - 0.1%
New Zealand Government
9%, 11/15/96 Aaa NZD 1,500,000 1,000,279
SWEDEN - 1.1%
Swedish Government
13%, 6/15/01 Aa1 SEK 60,000,000 10,598,404
UNITED KINGDOM - 6.7%
United Kingdom, Great Britain &
Northern Ireland:
9 1/2%, 1/15/99 Aaa GBP 8,550,000 14,366,300
9 3/4%, 8/27/02 Aaa GBP 13,100,000 22,910,879
6 3/4% 11/26/04 - GBP 5,500,000 8,035,361
7 3/4%, 9/8/06 Aaa GBP 5,100,000 7,916,971
9%, 10/13/08 Aaa GBP 2,200,000 3,741,142
8 3/4%, 8/25/17 Aaa GBP 3,000,000 5,017,100
61,987,753
UNITED STATES OF AMERICA - 5.2%
U.S. Treasury Notes:
6 1/2%, 5/15/97 Aaa $ 7,820,000 7,919,001
8 1/2%, 5/15/97 Aaa 7,535,000 7,850,490
9 1/4%, 8/15/98 (g) Aaa 7,385,000 8,049,650
9 1/8%, 5/15/99 Aaa 14,800,000 16,365,544
7 3/4%, 12/31/99 Aaa 7,550,000 8,084,389
48,269,074
TOTAL GOVERNMENT OBLIGATIONS
(Cost $238,496,859) 243,856,062
REPURCHASE AGREEMENTS - 17.8%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.88%, dated
10/31/95 due 11/1/95 $ 164,992,944 $ 164,966,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $879,189,605) $ 927,759,572
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
PURCHASED
600 Nikkei Stock Average
Contracts Dec. 1995 $ 52,995,000 $ (162,651)
THE FACE VALUE OF FUTURES PURCHASED AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 5.7%
CURRENCY ABBREVIATIONS
AUD - Australian dollar
GBP - British pound
DKK - Danish krone
FRF - French franc
DEM - German deutsche mark
ITL - Italian lira
JPY - Japanese yen
NZD - New Zealand dollar
SEK - Swedish krona
LEGEND
1. Non-income producing
2. 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 $5,004,454 or 0.6% of net
assets.
3. Principal amount is stated in United States dollars unless otherwise
noted.
4. Principal amount in thousands.
5. Restricted securities - Investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on each holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
Province of Chaco yankee
11 7/8%, 9/10/97 3/9/94 $ 208,400
6. 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.
7. Security pledged to cover margin requirements for futures contracts. At
the period end, the value of securities pledged amounted to $4,283,700.
8. 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 23.5% AAA, AA, A 21.6%
Baa 0.0% BBB 0.0%
Ba 0.0% BB 0.0%
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 2.0%.
At the end of the period, restricted securities (excluding 144A issues)
amounted to $206,000 or 0.02% of net assets (see Note 2 of Notes to
Financial Statements).
Purchases and sales of securities, other than short-term securities,
aggregated $1,335,124,780 and $1,803,897,005, respectively, of which U.S.
government and government agency obligations aggregated $132,775,450 and
$137,452,321, respectively.
The market value of futures contracts opened and closed during the period
amounted to $178,695,811 and $154,331,744, respectively (see Note 2 of
Notes to Financial Statements).
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 $235,616 for the period (see Note 4 of Notes to Financial
Statements).
The fund participated in the bank borrowing program. The maximum loan and
the average daily loan balances during the period for which loans were
outstanding amounted to $12,636,000 and $6,460,000, respectively. The
weighted average interest rate was 6.2% (see Note 6 of Notes to Financial
Statements).
INCOME TAX INFORMATION
At October 31, 1995, the aggregate cost of investment securities for income
tax purposes was $879,768,030. Net unrealized appreciation aggregated
$47,991,542, of which $62,320,763 related to appreciated investment
securities and $14,329,221 related to depreciated investment securities.
At October 31, 1995, the fund had a capital loss carryforward of
approximately $23,289,000 all of which will expire on October 31, 2003.
At October 31, 1995, the fund was required to defer $563,000 of losses on
futures contracts and options.
For the period, interest and dividends from foreign countries were
$35,321,818 or $0.70 per share. Taxes accrued or paid to foreign countries
were $1,131,032 or $0.02 per share.
MARKET SECTOR DIVERSIFICATION (UNAUDITED)
As a Percentage of Total Value of Investment in Securities
Basic Industries 6.6%
Conglomerates 0.1
Durables 4.6
Energy 5.1
Finance 3.1
Government Obligations 26.3
Health 0.9
Holding Companies 0.3
Industrial Machinery & Equipment 10.5
Media & Leisure 1.0
Nondurables 0.3
Precious Metals 0.8
Repurchase Agreements 17.8
Retail & Wholesale 4.0
Services 0.9
Technology 14.5
Transportation 0.4
Utilities 2.8
100.0%
INTERNATIONAL GROWTH AND INCOME
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
OCTOBER 31, 1995

ASSETS

Investment in securities, at value (including repurchase agreements of $164,966,000) (cost $879,189,605) - $ 927,759,572
See accompanying schedule

Cash 1,080

Receivable for investments sold 23,841,454

Receivable for fund shares sold 2,410,366

Dividends receivable 1,559,099

Interest receivable 6,937,270

Receivable for daily variation on futures contracts 225,000

TOTAL ASSETS 962,733,841

LIABILITIES

Payable for investments purchased $ 53,968,069

Payable for fund shares redeemed 4,503,207

Accrued management fee 581,194

Other payables and 446,162
accrued expenses

TOTAL LIABILITIES 59,498,632

NET ASSETS $ 903,235,209

Net Assets consist of:

Paid in capital $ 854,650,700

Undistributed net investment income 24,058,046

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions (23,952,947
)

Net unrealized appreciation (depreciation) on investments 48,479,410
and assets and liabilities in
foreign currencies

NET ASSETS, for 50,666,743 shares outstanding $ 903,235,209

NET ASSET VALUE, offering price $17.83
and redemption price per share ($903,235,209 (divided by) 50,666,743 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED OCTOBER 31, 1995

INVESTMENT INCOME $ 10,265,591
Dividends

Interest 34,048,676

44,314,267

Less foreign taxes withheld (1,131,032
)

TOTAL INCOME 43,183,235

EXPENSES

Management fee $ 7,967,320

Transfer agent fees 3,228,107

Accounting fees and expenses 465,444

Non-interested trustees' compensation 11,108

Custodian fees and expenses 343,548

Registration fees 66,717

Audit 55,814

Legal 61,594

Interest 2,219

Miscellaneous 10,478

Total expenses before reductions 12,212,349

Expense reductions (3,915 12,208,434
)

NET INVESTMENT INCOME 30,974,801

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

Investment securities (10,957,366
)

Foreign currency transactions (13,502,084
)

Futures contracts 1,409,044 (23,050,406
)

Change in net unrealized appreciation (depreciation) on:

Investment securities 7,647,225

Assets and liabilities in foreign currencies 14,414,807

Futures contracts (143,861 21,918,171
)

NET GAIN (LOSS) (1,132,235
)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 29,842,566

OTHER INFORMATION

Deferred sales charges withheld $12,868
by FDC

Accounting fees paid to FSC $462,071

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1995 1994

Operations $ 30,974,801 $ 28,691,450

Net investment income

Net realized gain (loss) (23,050,406) 29,756,601

Change in net unrealized appreciation (depreciation) 21,918,171 (45,604,352)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 29,842,566 12,843,699

Distributions to shareholders (16,097,075) (1,769,894)

From net investment income

From net realized gain (24,102,957) (2,997,808)

In excess of net realized gain - (1,647,620)

TOTAL DISTRIBUTIONS (40,200,032) (6,415,322)

Share transactions 548,686,974 1,287,341,882

Net proceeds from sales of shares

Reinvestment of distributions 39,646,248 6,281,612

Cost of shares redeemed (1,042,678,966) (934,960,509)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS (454,345,744) 358,662,985

TOTAL INCREASE (DECREASE) IN NET ASSETS (464,703,210) 365,091,362

NET ASSETS

Beginning of period 1,367,938,419 1,002,847,057

End of period (including undistributed net investment income of $24,058,046 and $11,175,791, $ 903,235,209 $ 1,367,938,419

respectively)

OTHER INFORMATION

Sold 32,087,835 72,892,665

Issued in reinvestment of distributions 2,423,206 363,939

Redeemed (61,852,870) (53,381,201)

Net increase (decrease) (27,341,829) 19,875,403

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.

</TABLE>

FINANCIAL HIGHLIGHTS
YEARS ENDED OCTOBER 31,

SELECTED PER-SHARE DATA 1995 1994 B 1993 1992 1991

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 17.54 $ 17.25 $ 13.29 $ 13.99 $ 13.71

Income from Investment Operations

Net investment income .54 .38 C .14 C .31 .30 E

Net realized and unrealized gain (loss) .28 F .02 F 4.14 (.84) .41

Total from investment operations .82 .40 4.28 (.53) .71

Less Distributions (.21) G (.03) (.31) (.16) (.38)
From net investment income

From net realized gain (.32) G (.05) (.01) D (.01) D (.05) D

In excess of net realized gain - (.03) - - -

Total distributions (.53) (.11) (.32) (.17) (.43)

Net asset value, end of period $ 17.83 $ 17.54 $ 17.25 $ 13.29 $ 13.99

TOTAL RETURN A 4.95% 2.33% 32.94% (3.81)% 5.43%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 903,235 $ 1,367,938 $ 1,002,847 $ 60,007 $ 49,738

Ratio of expenses to average net assets 1.18% 1.21% 1.52% 1.62% 1.89%

Ratio of net investment income to average net assets 2.98% 2.16% .87% 2.78% 2.86%

Portfolio turnover rate 141% 173% 24% 76% 117%

A TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE.
B EFFECTIVE NOVEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION
93-2, "DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT
PRESENTATION OF
INCOME, CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY
INVESTMENT COMPANIES." AS A RESULT, NET INVESTMENT INCOME PER SHARE
MAY REFLECT CERTAIN
RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
C NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
D INCLUDES AMOUNTS DISTRIBUTED FROM NET REALIZED GAINS ON FOREIGN
CURRENCY RELATED TRANSACTIONS TAXABLE AS ORDINARY INCOME.
E INCLUDES $.02 PER SHARE FROM RECOVERY OF FOREIGN TAXES PREVIOUSLY
WITHHELD ON DIVIDEND AND INTEREST PAYMENT.
F THE AMOUNT SHOWN FOR A SHARE OUTSTANDING DOES NOT CORRESPOND WITH
THE AGGREGATE NET LOSS ON INVESTMENTS FOR THE PERIOD ENDED DUE TO THE
TIMING OF
SALES AND REPURCHASES OF FUND SHARES IN RELATION TO FLUCTUATING
MARKET VALUES OF THE INVESTMENTS OF THE FUND.
G THE AMOUNTS SHOWN REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK
TO TAX DIFFERENCES (SEE NOTE 1 OF NOTES TO FINANCIAL STATEMENTS).

</TABLE>

DIVERSIFIED INTERNATIONAL
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
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (income) and capital gains (the profits the
fund earns when it sells securities that have grown in value). The 3% sales
charge, which had been waived since the fund's start on December 27, 1991,
was eliminated on July 1, 1995.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED PAST 1 LIFE OF
OCTOBER 31, 1995 YEAR FUND

DIVERSIFIED INTERNATIONAL 6.02% 34.96%

Morgan Stanley GDP-
weighted EAFE Index 0.50% 39.55%

Average International Fund -1.09% n/a

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
December 27, 1991. For example, if you invested $1,000 in a fund that had a
5% return over the past year, the value of your investment would be $1,050.
You can compare the fund's returns to the performance of the Morgan Stanley
GDP-weighted EAFE index - a broad measure of the performance of stocks in
Europe, Australia, and the Far East, weighted by each country's gross
domestic product. To measure how the fund's performance stacked up against
its peers, you can compare it to the average international fund, which
reflects the performance of 233 funds with similar objectives tracked by
Lipper Analytical Services over the past 12 months. These benchmarks
include reinvested dividends and capital gains, if any, and exclude the
effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED PAST 1 LIFE OF
OCTOBER 31, 1995 YEAR FUND

DIVERSIFIED INTERNATIONAL 6.02% 8.10%

Morgan Stanley GDP-
weighted EAFE Index 0.50% 9.04%

Average International Fund -1.09% n/a

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
Fidelity DiversiGDP Weighted EAF
12/27/91 9700.00 10000.00
12/31/91 9758.20 10275.57
01/31/92 9564.20 10188.63
02/29/92 9389.60 10050.14
03/31/92 8865.80 9554.95
04/30/92 8962.80 9638.28
05/31/92 9457.50 10205.78
06/30/92 9253.80 9873.69
07/31/92 8914.30 9524.06
08/31/92 9069.50 9997.89
09/30/92 8865.80 9631.08
10/31/92 8206.20 9240.11
11/30/92 8206.20 9285.20
12/31/92 8410.93 9283.63
01/31/93 8607.22 9391.13
02/28/93 8901.65 9719.67
03/31/93 9618.10 10383.39
04/30/93 10206.96 11339.71
05/31/93 10462.14 11516.97
06/30/93 10167.70 11317.62
07/31/93 10481.77 11658.22
08/31/93 11021.56 12512.58
09/30/93 10874.34 12250.09
10/31/93 11109.89 12586.98
11/30/93 10697.68 11584.19
12/31/93 11495.12 12399.01
01/31/94 12357.26 13347.09
02/28/94 12109.52 13273.82
03/31/94 11723.04 13083.23
04/30/94 11950.96 13744.12
05/31/94 11931.14 13428.70
06/30/94 11772.59 13422.75
07/31/94 12178.88 13734.43
08/31/94 12486.08 13967.08
09/30/94 12129.34 13476.08
10/31/94 12347.35 13885.61
11/30/94 11683.40 13266.77
12/31/94 11620.39 13367.39
01/31/95 11085.65 13024.96
02/28/95 11219.34 13010.19
03/31/95 11764.36 13599.39
04/30/95 12134.57 14207.31
05/31/95 12237.41 14069.97
06/30/95 12422.51 13912.97
07/31/95 13224.63 14822.36
08/31/95 13018.96 14203.34
09/30/95 13265.76 14371.87
10/31/95 13090.94 13955.28

Let's say you invested $10,000 in Fidelity Diversified International Fund
on December 27, 1991, when the fund started. By October 31, 1995, the value
of your investment would have grown to $13,496 - a 34.96% increase on your
initial investment. That compares to $10,000 invested in the Morgan Stanley
GDP-weighted EAFE index, which would have grown to $13,955 over the same
period - a 39.55% increase.

An interview with Greg Fraser, Portfolio Manager of Fidelity Diversified
International Fund
Q. HOW DID THE FUND PERFORM, GREG?
A. In an environment in which the U.S. markets outperformed many
international markets, the fund returned 6.02% for the 12 months ended
October 31, 1995. That's better than the average international fund tracked
by Lipper Analytical Services which returned -1.09% for the same time
period. The Morgan Stanley GDP-weighted EAFE index, a broad measure of
stock performance in Europe, Australia and the Far East returned .50% for
the same 12-month period.
Q. WHAT FACTORS LED TO SUCH STRONG PERFORMANCE?
A. The fund profited from successful country and industry themes. In
particular, several Japanese technology stocks performed well during the
period. Though some investors were concerned about technology in general,
the valuations of Japanese technology stocks were very reasonable. Stocks
such as Omron, Fujitsu, NEC and OKI Electric Industry were positive
contributors to performance.
Q. WHY DID THE FUND'S HOLDINGS IN JAPANESE STOCKS INCREASE FROM ABOUT 23%
OF ASSETS SIX MONTHS AGO TO ABOUT 30% AT THE END OF THE PERIOD?
A. The fund uses two kinds of computer models to determine its investment
strategy - top-down country selection models and bottom-up stock selection
models. The fund's weighting in Japan increased during the period as a
result of the fund's bottom-up stock selection models. When the models
looked at valuation parameters such as the price-to-book ratio and the
price-to-cash flow multiple, some Japanese equities had very reasonable
valuations when compared to their international competitors. In addition,
many Japanese technology companies had market-leading positions and
earnings estimates that were continually being revised upward. So, positive
business developments combined with attractive business valuations were
very appealing to the models.
Q. HOW DOES CURRENCY AFFECT THE FUND?
A. There are two factors to keep in mind. First, when the dollar changes in
value when compared to a foreign currency there is an immediate translation
impact. So a foreign stock the fund holds is immediately worth fewer
dollars if the dollar is strong, or more dollars if the dollar is weak.
Second, there is a longer-term business impact. Many analysts feel that it
is possible for a currency to be too strong. When this happens, a country's
or company's manufactured goods tend to be too expensive in some foreign
markets and the country or the company will lose sales. But when a currency
that the market felt was overvalued begins to fall, that country's stock
market often does very well. We saw examples of this in the United Kingdom
and Scandinavia in 1992-1993.
Q. AND WHAT HAPPENED TO THE FUND THIS PERIOD?
A. At the beginning of the period, the dollar tended to be weaker when
compared to the yen and deutschmark. This resulted in a favorable
translation impact (for U.S. investors) but tended to put a damper on
Japanese and German stock performance (in local currency terms) because
analysts felt that their manufactured goods were becoming uncompetitive.
Toward the end of the period, the process tended to reverse and the yen and
the deutschmark were somewhat weaker when compared to the dollar. This had
a negative translation impact (for U.S. investors) since a stock priced in
a foreign currency was immediately worth fewer dollars. However, many
stocks in Japan and Germany then started to do quite a bit better (in local
currency terms) as investors started to look forward to the positive
earnings growth which could result from more cheaply priced exports.
Q. WHAT ABOUT THE FUND'S HOLDINGS IN NORDIC COUNTRIES?
A. The fund's holdings in Scandinavia remained significant and were about
the same as they were six months ago. Many Nordic companies were trading
below 10 times earnings and appeared to be growing earnings by 10% or
greater per year. I found that, during the period, stocks such as Pharmacia
were a very reasonable way to buy earnings growth within the fund.
Q. HAVE YOU MADE ANY SIGNIFICANT CHANGES TO THE FUND'S MODELS?
A. I'm constantly working on improving the fund's stock selection and
country methodologies. In the top-down country selection models, we've
added new artificial intelligence techniques. With the bottom-up models,
I'm working on looking at industry-specific models in addition to
stock-specific models. As long-term shareholders know, the quantitative
management techniques of this fund are constantly evolving.
Q. IN PREVIOUS REPORTS YOU'VE MENTIONED THAT YOU MAY INCREASE THE FUND'S
EXPOSURE TO EMERGING MARKETS, YET THE WEIGHTING WAS ABOUT THE SAME AS IT
WAS SIX MONTHS AGO. WHAT'S HOLDING YOU BACK?
A. Some of the economies of larger emerging markets, notably Mexico, have
been quite problematic lately. Until valuations better reflect troubles in
the economy, I'll continue to be cautious. However, I've been seeing some
excellent opportunities in closed-end funds that concentrate on emerging
markets. They're trading at discounts approaching 20%, which appears to be
a compelling bargain. So I've been prudently building positions in some of
the funds gaining exposure to the emerging markets.
Q. WHAT INVESTMENTS PROVED DISAPPOINTING?
A. Most French stocks performed poorly during the period and, as a result,
I reduced the fund's holdings in France from 6.4% to 4.1% of investments.
Many analysts thought that France - where valuations appeared reasonable
and positive political changes seemed imminent - would outperform. But with
unexpected political turmoil such as terrorist bombings and continued
shakeups in the government, France didn't live up to its potential. The
models that the fund uses are unable to predict political problems or
controversies. At the end of the period, I was maintaining less exposure to
countries such as France and Italy where politics seem to be such a pivotal
factor in returns. I've re-emphasized countries where political issues
account for less of the activity in the markets or where valuations already
incorporate many political problems. At the end of the period, the fund's
exposure to France and Italy was quite modest.
Q. WHAT'S AHEAD FOR THE FUND, GREG?
A. As an international portfolio manager, it's been frustrating to watch
the U.S. market outdistance many foreign markets during the past six
months. However, outperformance by the U.S. means that many international
companies have very reasonable valuations when compared to their U.S.
peers. After considering their present relative valuations, the outlook on
many foreign stocks begins to look more positive. So we could be
approaching another time period in which foreign stocks could perform
favorably. However, as I've cautioned in the past, some analysts feel that
the dollar has finally bottomed and that we could see a sustained period of
substantial dollar strength. If that were to happen, it's very important
for shareholders to understand that the fund could undergo a very
challenging period.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER,
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.

FUND FACTS
GOAL: long-term growth of capital by investing
in foreign equity securities that are
determined, through both technical and
fundamental analysis, to be undervalued
compared to others in their industries and
countries
START DATE: December 27, 1991
SIZE: as of October 31, 1995, more than
$295 million
MANAGER: Gregory Fraser, since 1991; manager,
Fidelity Select Defense and Aerospace Portfolio,
1989-1990; and Fidelity Select Environmental
Services Portfolio, 1991; joined Fidelity in 1986
(checkmark)
GREG FRASER ON THE USE OF FUNDAMENTAL DATA IN
QUANTITATIVE INVESTING METHODS:
"When people hear the word "quant" or the term
"quantitative analysis," they tend to think of it as a
completely different type of analysis - having little or
nothing to do with more well-known methods of
analysis such as technical or fundamental.
"The quantitative research group here at Fidelity
believes in taking the best of both technical and
fundamental research techniques and combining
them in a disciplined and systematic way in order to
make good, profitable decisions. As quantitative
investors, some of the most important things we look
at are future earnings estimates, balance sheet items
and company cash flows - just as fundamental
analysts do. We're also interested in price and volume
trends, which are the key components of technical
research.
"Our goal is to enhance traditional research and
analysis with technology. With a fund like Diversified
International, it would be extremely difficult to
synthesize the data on the more than 5,000
companies around the world from which we choose
our holdings without the help of computers and
technology.
"The bottom line is that our goal is to achieve the best
returns possible for the fund; and we don't shy away
from borrowing techniques from technical and
fundamental analysis to achieve that goal.
"Finally, every year I attend dozens and dozens of
company meetings when they visit us here at Fidelity.
This allows continuous quality controls of the
models by comparing the models' favorite stocks to
the business prospects the companies are actually
discussing."
DISTRIBUTIONS
The Board of Trustees of Fidelity Diversified
International Fund voted to pay on December 11,
1995, to shareholders of record at the opening of
business on December 8, 1995, a distribution of $.41
derived from capital gains realized from sales of
portfolio securities and a dividend of $.22 from net
investment income.
DIVERSIFIED INTERNATIONAL
INVESTMENT CHANGES

GEOGRAPHIC DIVERSIFICATION
AS OF OCTOBER 31, 1995

United States 5.3%
Netherlands 4.7%
Row: 1, Col: 1, Value: 5.3
Row: 1, Col: 2, Value: 6.8
Row: 1, Col: 3, Value: 3.4
Row: 1, Col: 4, Value: 3.6
Row: 1, Col: 5, Value: 28.7
Row: 1, Col: 6, Value: 4.3
Row: 1, Col: 7, Value: 29.8
Row: 1, Col: 8, Value: 9.300000000000001
Row: 1, Col: 9, Value: 4.1
Row: 1, Col: 10, Value: 4.7
United Kingdom 6.8%
France 4.1%
Canada 3.4%
Germany 9.3%
Australia 3.6%
Japan 29.8%
Other 28.7%
Sweden 4.3%
AS OF APRIL 30, 1995
United States 10.0%
Netherlands 5.9%
Row: 1, Col: 1, Value: 10.0
Row: 1, Col: 2, Value: 9.300000000000001
Row: 1, Col: 3, Value: 3.1
Row: 1, Col: 4, Value: 3.6
Row: 1, Col: 5, Value: 23.3
Row: 1, Col: 6, Value: 3.6
Row: 1, Col: 7, Value: 22.9
Row: 1, Col: 8, Value: 3.4
Row: 1, Col: 9, Value: 8.5
Row: 1, Col: 10, Value: 6.4
Row: 1, Col: 11, Value: 5.9
Row: 1, Col: 12, Value: 0.0
France 6.4%
United
Kingdom 9.3%
Germany 8.5%
Canada 3.1%
Australia 3.6%
Norway 3.4%
Other 23.3%
Japan 22.9%
Sweden 3.6%
ASSET ALLOCATION
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Stocks and closed-end
investment companies 94.4 89.2

Bonds 1.5 2.7

Short-term investments 4.1 8.1

TOP TEN STOCKS
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Hitachi Ltd. 2.1 2.2
(Japan, Electronics)

Omron Corp. 2.0 1.2
(Japan, Electrical Equipment)

Ricoh Co. Ltd. Ord. 1.8 0.8
(Japan, Computers & Office Equipment)

Bayer AG 1.8 1.4
(Germany, Chemicals & Plastics)

TDK Corp. 1.8 1.5
(Japan, Electronics)

Canon, Inc. 1.8 0.6
(Japan, Computers & Office Equipment)

Matsushita Electric Industrial Co. Ltd. 1.7 1.7
(Japan, Consumer Electronics)

Fuji Photo Film Co. Ltd. 1.7 1.2
(Japan, Photographic Equipment)

Toshiba Corp. 1.5 0.7
(Japan, Electronics)

Veba AG Ord. 1.4 1.6
(Germany, Electric Utilities)

TOP TEN MARKET SECTORS
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Technology 19.1 10.9

Finance 17.8 13.7

Utilities 10.6 10.1

Basic Industries 8.4 8.7

Nondurables 6.6 9.0

Health 6.2 4.6

Industrial Machinery & Equipment 5.5 5.4

Durables 5.0 5.3

Energy 4.5 7.1

Media & Leisure 2.7 2.7

DIVERSIFIED INTERNATIONAL
INVESTMENTS OCTOBER 31, 1995

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 83.2%
SHARES VALUE (NOTE 1)
ARGENTINA - 1.2%
Banco de Galicia Y Buenos Aires SA
sponsored ADR representing Class B
shares (New) 50,000 $ 956,250
Banco Frances del Rio de la Plata SA
ADR 50,000 1,093,750
Telecom Argentina sponsored ADR
Class B 20,000 767,500
Telefonica de Argentina SA sponsored
ADR 30,000 622,500
3,440,000
AUSTRALIA - 3.6%
Advance Bank Australia Ltd. 106,025 782,079
Boral Ltd. Ord. 308,700 737,118
Broken Hill Proprietary Co. Ltd. (The) 100,000 1,352,080
CSR Ltd. 400,000 1,274,514
Caltex Australia Ltd. 630,000 2,031,314
Capral Aluminum Ltd. 400,000 912,540
News Corp. Ltd. ADR 30,000 596,250
Orbital Engine Corp. Ltd. sponsored
ADR 1,000 7,625
Pioneer International Ltd. 500,000 1,224,325
Qantas Airways Ltd. (a) 100,000 176,424
Qantas Airways Ltd. sponsored ADR (b) 5,600 98,700
Santos Ltd. 432,507 1,167,595
Siddons Ramset Ltd. 109,258 293,604
10,654,168
BERMUDA - 0.1%
Partner Re Holdings 10,000 266,250
BRAZIL - 0.6%
Brahma (Cia Cervejaria) PN Class B
(Pfd. Reg.) 1,250,000 477,119
Telebras PN (Pfd. Reg.) 30,000,000 1,216,536
1,693,655
CANADA - 3.0%
Algoma Steel, Inc. (a) 3,600 15,396
BCE Mobile Communications, Inc. (a) 5,800 173,633
Barrick Gold Corp. 60,000 1,394,570
C A E Industries Ltd. 50,000 353,291
Chieftain International, Inc. (a) 100,000 1,375,976
FCA International Ltd. (a) 150,300 335,366
Imasco Ltd. 75,900 1,354,853
Magna International, Inc. Class A 30,000 1,305,318
Newbridge Networks Corp. (a) 50,000 1,525,000
Toronto Dominion Bank 50,000 883,228
8,716,631
DENMARK - 1.0%
Novo-Nordisk AS Class B 15,000 1,909,166
Scandinavian Mobility (b) 9,000 214,266
Tele Danmark AS ADR Class B 35,000 914,375
3,037,807
FINLAND - 2.7%
Cultor OY Ord., Series 2 30,000 1,244,241
Enso-Gutzeit OY Class R Free shares 100,000 784,720
Instrumentarium OY Class B 40,000 1,036,868
Kemira OY sponsored ADR (b) 65,000 1,072,500
Nokia Corp. AB:
Series K 15,000 876,625
sponsored ADR 50,000 2,787,500
7,802,454

SHARES VALUE (NOTE 1)
FRANCE - 4.1%
Alcatel Alsthom sponsored ADR 25,000 $ 421,875
CGIP 6,000 1,136,713
Coflexip sponsored ADR 44,700 625,800
Credit Commercial de France
(warrants) (a) 277 79
Elf Aquitaine sponsored ADR 25,000 843,750
Elf Sanofi SA 17,600 1,124,309
Eramet SA 19,990 1,351,091
Eridania Beghin Say Group Ord. 4,000 673,425
Europeene de Propulsion SA 1,579 103,488
Lafarge Coppee SA 13,000 862,939
Michelin SA Cie Generale des
Etablissements Class B 30,000 1,213,518
Peugeot SA Ord. 2,000 260,932
Salomon SA 1,000 577,983
Societe Generale Class A 9,000 1,030,415
Total SA Class B 30,000 1,856,836
12,083,153
GERMANY - 6.6%
Andrea-Noris Zahn 6,500 1,707,308
BASF AG 8,000 1,754,872
Bayer AG 20,000 5,315,728
Deutsche Bank AG 50,000 2,259,965
Hoechst AG Ord. 5,500 1,443,474
Springer Axel Verlag AG (Reg.) 3,000 1,810,244
Thyssen AG Ord. 5,000 899,088
Veba AG Ord. 100,000 4,102,509
19,293,188
HONG KONG - 1.9%
Cheung Kong Holdings Ltd. 50,000 281,971
Consolidated Electric Power Asia Ltd. 500,000 1,012,120
New World Infrastructure Ltd. (b) 367,000 645,584
Peregrine Investments Holdings Ltd. 2,000,000 2,548,084
Semi-Tech (Global) Ltd. 531,413 831,697
South China Morning Post Holdings 400,000 232,820
Yue Yuen Industrial Holdings Ltd. 500,000 130,961
5,683,237
IRELAND - 0.8%
Bank of Ireland U.S. Holdings, Inc. 130,000 867,062
IAWS Group PLC Class A (Reg.) 180,000 324,319
Independent Newspapers PLC 161,457 968,419
Waterford Foods PLC Class A 150,000 244,187
2,403,987
ISRAEL - 0.1%
Elscint Ltd. (a) 99,000 222,750
Laser Industries Ltd. Ord. (a) 14,500 164,938
387,688
ITALY - 1.6%
Stet (Societa Finanziaria Telefonica)
Spa Ord. 800,000 2,265,892
Telecom Italia Mobile Spa (a) 700,000 1,179,388
Telecom Italia Ord. 800,000 1,227,715
4,672,995
JAPAN - 29.8%
Canon, Inc. 300,000 5,144,285
Citizen Watch Co. Ltd. Ord. 125,000 858,606
Dai-Tokyo Fire & Marine Insurance Ord. 400,000 2,575,082
Dowa Fire & Marine Industries Co. Ltd. 150,000 699,623
Fuji Photo Film Co. Ltd. 200,000 4,958,111
Fujitsu Ltd. 300,000 3,586,302
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
JAPAN - CONTINUED
Hitachi Ltd. 600,000 $ 6,173,142
Honda Motor Co. Ltd. 100,000 1,744,158
Izumiya Co. Ltd. 100,000 1,538,386
Kao Corp. 175,000 2,126,304
Kirin Brewery Co. Ltd. 100,000 1,009,260
Konica Corp. 200,000 1,342,413
Kyocera Corp. 40,000 3,284,503
Maruzen Showa Unyu Co., Ltd. 100,000 486,012
Matsushita Electric Industrial Co. Ltd. 350,000 4,972,809
Mitsubishi Heavy Industries Ltd. 450,000 3,479,006
NEC Corp. 200,000 2,645,632
Nittetsu Mining Co. Ltd. 100,000 867,179
Nitto Denko Corp. 100,000 1,597,178
Nomura Securities Co. Ltd. 100,000 1,832,345
OKI Electric Industry Co. Ltd. (a) 300,000 2,783,793
Omron Corp. 250,000 5,854,686
Ricoh Co. Ltd. Ord. 500,000 5,389,251
Royal Co. Ltd. 100,000 1,499,192
Sekisui Chemical Co. Ltd. 200,000 2,606,438
Sekisui House Ltd. 150,000 1,734,359
TDK Corp. 100,000 5,163,882
Takeda Chemical Industries Ltd. 270,000 3,809,710
Toshiba Corp. 600,000 4,356,474
Toyota Motor Corp. 125,000 2,327,177
Yamaichi Securities Co. Ltd. 100,000 525,207
86,970,505
KOREA (SOUTH) - 1.2%
Korea Electric Power Corp. 40,000 1,757,890
Samsung Electronics Co. Ltd. (b):
GDS 25,000 1,617,500
GDR representing shares
(non-vtg.) 4,000 257,400
3,632,790
LUXEMBOURG - 0.2%
Quilmes Industries SA 40,000 704,000
MEXICO - 0.2%
Grupo Radio Centro SA de CV
sponsored ADR 20,000 142,500
Sanluis Corp. Units 9,400 44,509
Telefonos de Mexico SA sponsored ADR
representing shares Ord. Class L 10,000 275,000
462,009
NETHERLANDS - 4.7%
ABN-AMRO Holdings NV 25,000 1,050,181
Heineken NV 5,000 887,030
International Nederlanden Groep NV 25,000 1,490,528
KLM Royal Dutch Airlines Ord. 60,336 1,991,703
Koninklijke PPT Nederland 1,113 39,138
Koninklijke PPT Nederland (b) 20,000 703,288
Philips Electronics NV (Bearer) 37,000 1,430,020
Royal Dutch Petroleum Co. 25,000 3,071,875
SGS Thomson Microelectronics NV 17,000 769,250
Telegraaf 5,000 719,128
Twentsche Kabel Holding NV 22,600 773,237
Unilever NV Ord. 5,000 654,818
13,580,196
NETHERLANDS ANTILLES - 0.5%
Intrum Justitia NV (Reg.) 1,000,000 1,280,205
Orthofix International 20,000 195,000
1,475,205

SHARES VALUE (NOTE 1)
NEW ZEALAND - 0.9%
Brierley Investments Ltd. 2,500,000 $ 1,943,313
Fletcher Challenge Ltd.:
(Forestry Division) 38,309 52,743
(Ordinary Division) 230,000 607,565
2,603,621
NORWAY - 2.2%
Fokus Bank AS (a) 38,300 203,020
Helikopter Services AS 160,000 2,004,658
Norsk Hydro AS ADR 15,000 600,000
Orkla AS Class B (non-vtg.) 45,000 2,190,186
Saga Petroleum AS Class B 100,000 1,204,723
Transocean Drilling AS (a) 7,000 106,819
6,309,406
PANAMA - 0.1%
McDermott (J. Ray) SA 20,000 302,500
PORTUGAL - 0.3%
Portugal Telecom SA sponsored ADR (a) 50,000 937,500
SOUTH AFRICA - 1.1%
Anglo American Corp. of
South Africa (Reg.) 50,000 2,844,609
Rustenberg Platinum Holding Ltd. ADR 20,385 356,738
3,201,347
SPAIN - 1.4%
Empresa Nacional de Electricidad SA
sponsored ADR 10,000 502,500
Hidroelectrica de Cantabrico SA 35,000 1,052,869
Telefonica de Espana SA sponsored ADR 30,000 1,128,750
Union Electrica Fenosa SA 300,000 1,396,721
4,080,840
SWEDEN - 4.3%
Astra AB Class A Free shares 45,000 1,656,283
Atlas Copco AB Class A Free shares 70,000 1,061,198
Cardo AB (a) 70,000 1,087,596
Celsius Industrier AB Class B 65,000 1,230,522
Marieberg Tidnings Class A 22,000 524,339
Mo Och Domsjoe AB Class B 15,000 764,787
Nordbanken AB (b) 20,000 295,657
Pharmacia AB Class A Free shares 70,000 2,439,172
SKF AB Ord. 30,000 568,494
Skandinaviska Enskilda Banken
Class A Free shares 80,000 540,630
Sparbanken Sverige AB Class A (a)(b) 25,000 263,980
Volvo AB Class B 90,000 2,029,626
12,462,284
SWITZERLAND - 2.2%
Bank for International Settlements 285 2,633,084
Bucher Holding AG (Bearer) 1,200 754,949
Nestle SA (Reg.) 3,000 3,141,223
6,529,256
UNITED KINGDOM - 6.8%
British Petroleum PLC ADR 12,000 1,059,000
Carlton Communications 50,000 761,406
Cordiant PLC sponsored ADR (a) 50,000 193,750
Forte PLC 10,000 39,829
Glaxo PLC sponsored ADR 70,000 1,898,750
Guinness PLC Ord. 75,000 600,985
Huntingdon International Holdings PLC
Ord. (a) 650,000 657,488
Invesco Mim PLC 250,000 960,154
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
UNITED KINGDOM - CONTINUED
London International Group PLC 600,000 $ 1,242,273
Northumbrian Water Group PLC Ord. 65,000 1,019,106
RTZ Corp. PLC Ord. 40,000 553,807
Royal Insurance Holdings PLC 175,000 1,080,074
Severn Trent PLC Ord. 90,000 913,924
SmithKline Beecham PLC ADR 25,000 1,296,875
South West Water PLC Ord. 90,000 712,647
Tesco PLC Ord. 225,000 1,066,838
Vodafone Group PLC sponsored ADR 100,000 4,087,500
WPP Group PLC ADR 155,000 745,938
Yorkshire Water Ord. 90,000 871,251
19,761,595
UNITED STATES OF AMERICA - 0.0%
DST Systems, Inc. 2,000 42,000
TOTAL COMMON STOCKS
(Cost $212,279,448) 243,190,267
CLOSED-END INVESTMENT COMPANIES - 9.0%
CANADA - 0.4%
Canadian General Investment Ltd. 50,000 1,176,088
CHILE - 0.5%
Five Arrows Chile Investment Trust Ltd. 500,000 1,450,000
EMERGING MARKETS - 2.1%
Emerging Markets Infrastructure
Fund, Inc. 74,700 709,650
GT Global Developing Markets Fund 250,000 2,343,750
TCW/DW Emerging Markets
Opportunities Trust 170,000 1,615,000
Templeton Dragon Fund, Inc. 120,000 1,440,000
6,108,400
GERMANY - 1.9%
Central European Equity Fund (a) 119,500 1,912,000
Emerging Germany Fund, Inc. 186,000 1,348,500
The New Germany Fund, Inc. 200,000 2,450,000
5,710,500
MALAYSIA - 0.6%
Malaysia Equity Fund Ltd. (a) 120,000 1,770,000
PHILIPPINES - 0.3%
First Philippine Fund 50,000 762,500
REGIONAL AFRICA - 0.6%
Morgan Stanley Africa Investment
Fund, Inc. 70,000 901,250
Southern Africa Fund, Inc. 50,000 775,000
1,676,250
REGIONAL ASIA - 0.5%
Morgan Stanley Asia-Pacific Fund, Inc. 125,000 1,375,000
SPAIN - 1.1%
Growth Fund of Spain, Inc. 300,000 3,150,000
THAILAND - 0.3%
Thai Prime Fund 61,000 915,000
UNITED STATES OF AMERICA - 0.7%
Alliance Global Environment Fund (a) 140,200 1,314,375
Global Health Sciences Fund (a) 50,000 737,500
2,051,875
TOTAL CLOSED-END INVESTMENT COMPANIES
(Cost $26,374,769) 26,145,613
NONCONVERTIBLE PREFERRED STOCKS - 2.2%
SHARES VALUE (NOTE 1)
GERMANY - 0.8%
GEA AG 3,500 $ 1,140,454
SAP AG 3,000 460,015
Suedzucker AG 2,000 810,705
2,411,174
ITALY - 0.6%
Stet (Societa Finanziaria Telefonica) Spa 800,000 1,748,060
UNITED STATES OF AMERICA - 0.8%
Freeport McMoran Copper & Gold, Inc.:
Series B 50,000 1,675,000
Series C 25,000 787,500
2,462,500
TOTAL NONCONVERTIBLE PREFERRED STOCKS
(Cost $6,974,364) 6,621,734
GOVERNMENT OBLIGATIONS (E) - 1.8%
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (C)
ARGENTINA - 0.4%
Argentina Republic BOCON
5.5625%, 4/1/01 (d) B1 $ 1,969,002 1,303,452
NEW ZEALAND - 1.4%
New Zealand Government:
8%, 11/15/95 Aaa NZD 1,500,000 987,856
9%, 11/15/96 Aaa NZD 3,000,000 2,000,558
10%, 7/15/97 Aaa NZD 1,500,000 1,027,452
4,015,866
TOTAL GOVERNMENT OBLIGATIONS
(Cost $4,888,637) 5,319,318
REPURCHASE AGREEMENTS - 3.8%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a
joint trading account at 5.88%,
dated 10/31/95 due 11/1/95 $ 11,057,806 11,056,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $261,573,218) $292,332,932
CURRENCY ABBREVIATIONS
NZD - New Zealand dollar
LEGEND
1. Non-income producing
2. 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 $5,168,875 or 1.8% of net
assets.
3. Principal amount is stated in United States dollars unless otherwise
noted.
4. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
5. 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
Purchases and sales of securities, other than short-term securities,
aggregated $275,742,713 and $333,750,125, respectively.
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 $128,327 for the period (see Note 4 of Notes to Financial
Statements).
INCOME TAX INFORMATION
At October 31, 1995, the aggregate cost of investment securities for income
tax purposes was $262,205,547. Net unrealized appreciation aggregated
$30,127,385, of which $37,231,337 related to appreciated investment
securities and $7,103,952 related to depreciated investment securities.
The fund hereby designates $2,480,000 as a capital gain dividend for the
purpose of the dividend paid deduction.
For the period, interest and dividends from foreign countries were
$7,865,097 or $0.34 per share. Taxes accrued or paid to foreign countries
were $1,533,192 or $0.07 per share.
MARKET SECTOR DIVERSIFICATION (UNAUDITED)
As a Percentage of Total Value of Investment in Securities
Aerospace & Defense 0.6%
Basic Industries 8.4
Construction & Real Estate 2.1
Durables 5.0
Energy 4.5
Finance 17.8
Government Obligations 1.8
Health 6.2
Holding Companies 0.8
Industrial Machinery & Equipment 5.5
Media & Leisure 2.7
Nondurables 6.6
Precious Metals 1.5
Repurchase Agreements 3.8
Retail & Wholesale 0.9
Services 0.3
Technology 19.1
Transportation 1.8
Utilities 10.6
100.0%
DIVERSIFIED INTERNATIONAL
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
OCTOBER 31, 1995

ASSETS

Investment in securities, at value (including repurchase agreements of $11,056,000) (cost $261,573,218) - $ 292,332,932
See accompanying schedule

Cash 730

Receivable for investments sold 6,698,035

Receivable for fund shares sold 1,124,132

Dividends receivable 878,089

Interest receivable 157,194

TOTAL ASSETS 301,191,112

LIABILITIES

Payable for investments purchased $ 4,818,263

Payable for fund shares redeemed 957,145

Accrued management fee 226,996

Other payables and accrued expenses 172,109

TOTAL LIABILITIES 6,174,513

NET ASSETS $ 295,016,599

Net Assets consist of:

Paid in capital $ 248,402,049

Undistributed net investment income 5,148,992

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions 10,717,968

Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies 30,747,590

NET ASSETS, for 23,168,679 shares outstanding $ 295,016,599

NET ASSET VALUE, offering price $12.73
and redemption price per share ($295,016,599 (divided by) 23,168,679 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED OCTOBER 31, 1995

INVESTMENT INCOME $ 7,797,044
Dividends

Interest 1,658,855

9,455,899

Less foreign taxes withheld (1,533,192
)

TOTAL INCOME 7,922,707

EXPENSES

Management fee $ 2,270,179
Basic fee

Performance adjustment (211,273
)

Transfer agent fees 867,536

Accounting fees and expenses 178,932

Non-interested trustees' compensation 2,887

Custodian fees and expenses 175,243

Registration fees 24,701

Audit 38,833

Legal 14,471

Miscellaneous 3,501

Total expenses before reductions 3,365,010

Expense reductions (35,327 3,329,683
)

NET INVESTMENT INCOME 4,593,024

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

Investment securities 11,746,226

Foreign currency transactions (35,175 11,711,051
)

Change in net unrealized appreciation (depreciation) on:

Investment securities (3,741,846
)

Assets and liabilities in 366,100 (3,375,746
foreign currencies )

NET GAIN (LOSS) 8,335,305

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 12,928,329

OTHER INFORMATION

Accounting fees paid to FSC $177,924

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1995 1994

<TABLE>
<CAPTION>
<S> <C> <C>
Operations $ 4,593,024 $ 3,033,098
Net investment income

Net realized gain (loss) 11,711,051 10,885,262

Change in net unrealized appreciation (depreciation) (3,375,746) 13,742,044

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 12,928,329 27,660,404

Distributions to shareholders (804,584) (57,277)
From net investment income

From net realized gain (10,459,145) (2,281,540)

TOTAL DISTRIBUTIONS (11,263,729) (2,338,817)

Share transactions 211,031,927 439,644,650
Net proceeds from sales of shares

Reinvestment of distributions 10,913,981 2,282,423

Cost of shares redeemed (279,746,151) (371,125,272)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS (57,800,243) 70,801,801

TOTAL INCREASE (DECREASE) IN NET ASSETS (56,135,643) 96,123,388

NET ASSETS

Beginning of period 351,152,242 255,028,854

End of period (including undistributed net investment income of $5,148,992 and $819,988,
respectively) $ 295,016,599 $ 351,152,242

OTHER INFORMATION
Shares

Sold 17,615,508 36,516,172

Issued in reinvestment of distributions 980,592 201,263

Redeemed (23,603,323) (31,079,116)

Net increase (decrease) (5,007,223) 5,638,319

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
YEARS ENDED OCTOBER 31, DECEMBER 27, 1991
(COMMENCEMENT
OF OPERATIONS) TO
OCTOBER 31,

SELECTED PER-SHARE DATA 1995 1994 B 1993 1992

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 12.46 $ 11.32 $ 8.46 $ 10.00

Income from Investment Operations

Net investment income .22 .05 .07 .07

Net realized and unrealized gain (loss) .47 1.20 2.89 (1.61)

Total from investment operations .69 1.25 2.96 (1.54)

Less Distributions (.03) (.01) (.10) -
From net investment income

From net realized gain (.39) (.10) - -

Total distributions (.42) (.11) (.10) -

Net asset value, end of period $ 12.73 $ 12.46 $ 11.32 $ 8.46

TOTAL RETURN A, C 6.02% 11.14% 35.38% (15.40)%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 295,017 $ 351,152 $ 255,029 $ 36,439

Ratio of expenses to average net assets 1.13% 1.25% 1.47% 2.00% D,
E

Ratio of expenses to average net assets after expense reductions 1.12% 1.25% 1.47% 2.00% D

Ratio of net investment income to average net assets 1.55% .96% .84% 1.38% D

Portfolio turnover rate 101% 89% 56% 56% D

A TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
B EFFECTIVE NOVEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION
93-2, "DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION
OF
INCOME, CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY
INVESTMENT COMPANIES." AS A RESULT, NET INVESTMENT INCOME PER SHARE
MAY REFLECT CERTAIN
RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
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 ANNUALIZED
E FMR VOLUNTARILY AGREED TO REIMBURSE A PORTION OF THE FUND'S
EXPENSES DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S
EXPENSE RATIO WOULD HAVE BEEN
HIGHER.

</TABLE>

INTERNATIONAL VALUE
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
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (income) and capital gains (the profits the
fund earns when it sells securities that have grown in value).
CUMULATIVE TOTAL RETURNS
PERIODS ENDED LIFE OF
OCTOBER 31, 1995 FUND

INTERNATIONAL VALUE 6.30%

Morgan Stanley EAFE Index -0.37%

Average International Fund -1.09%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, since the fund started on November 1,
1994. For example, if you invested $1,000 in a fund that had a 5% return
over the past year, the value of your investment would be $1,050. You can
compare the fund's returns to the performance of the Morgan Stanley EAFE
index - a broad measure of the performance of stocks in Europe, Australia,
and the Far East. You can also compare the fund's performance to the
average international fund, which reflects the performance of 150 funds
with similar objectives tracked by Lipper Analytical Services over the past
12 months. These benchmarks include reinvested dividends and capital gains,
if any, and exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
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. In the fund's next report we'll report these
numbers for the fund and the benchmarks.
$10,000 OVER LIFE OF FUND
Fidelity InternaEurope, Australi
11/01/94 10000.00 10000.00
11/30/94 9700.00 9519.40
12/31/94 9790.00 9579.01
01/31/95 9440.00 9211.02
02/28/95 9530.00 9184.59
03/31/95 10000.00 9757.44
04/30/95 10170.00 10124.41
05/31/95 10030.00 10003.72
06/30/95 10040.00 9828.29
07/31/95 10830.00 10440.16
08/31/95 10800.00 10041.90
09/30/95 10860.00 10238.02
10/31/95 10620.00 9962.82

Let's say you invested $10,000 in Fidelity International Value Fund on
November 1, 1994, when the fund started. By October 31, 1995, the value of
your investment would have grown to $10,630 - a 6.30% increase on your
initial investment. That compares to $10,000 invested in the Morgan Stanley
EAFE index, which would have decreased value to $9,963 over the same period
- - a 0.37% decrease.

An interview with Richard Mace, Portfolio Manager of Fidelity International
Value Fund
Q. HOW HAS THE FUND PERFORMED, RICK?
A. From its inception on November 1, 1994, through October 31, 1995, the
fund had a total return of 6.30%. During the same period, the Morgan
Stanley EAFE Index -which tracks the performance of stocks in Europe,
Australia and the Far East - returned -0.37%. The average international
fund had a total return of -1.09% according to Lipper Analytical Services.
Q. WHAT HELPED THE FUND BEAT BOTH THE AVERAGE FUND AND THE INDEX?
A. I would say there were three major contributors to the fund's
performance. The first had to do with the level of the fund's investment in
Japan. Specifically, the fund had less than 30% invested there in January,
but nearly 60% of the fund was invested in Japan in August. The fund was
underweighted relative to the index early in the year when the Japanese
market was weak. But the fund was overweighted relative to the index as the
market recovered later in the year. The second reason had to do with the
fund's cash and short-term investment position. Because of the rapid growth
in the fund's assets over the year, it maintained a higher-than-normal cash
level. Once the rapid growth slowed, the fund's cash level declined. In an
environment where international markets were underperforming, being
underinvested provided an advantage. Third, the fund's investments in
Norway - although only a small percentage of the fund - provided positive
performance.
Q. LET'S TALK ABOUT JAPAN FIRST. WHAT SORT OF STOCKS DID YOU TARGET?
A. If you look at the portfolio, you'll see that many of the Japanese
stocks were cyclicals - companies poised to benefit from an economic
recovery there. These included electronics and computer companies, such as
Hitachi, Mitsubishi Electric, Canon and NEC; Ito-Yokado, a retailer; and
Honda, the motorcycle and automobile manufacturer that benefited from
strong new model sales, a solid balance sheet and cost cutting. While these
stocks followed a particular theme, let me remind investors that I select
stocks one at a time, based on company prospects and valuation - trying to
maximize return with minimal risk, by buying stocks that I find to be
cheap.
Q. YOU INCREASED THE PERCENTAGE OF THE FUND'S INVESTMENTS IN ITS TOP STOCK,
OMRON. WHAT WAS THE APPEAL BEHIND THIS PARTICULAR COMPANY?
A. Omron manufactures factory automation and control equipment. It
benefited from strong worldwide demand for its products, as electronic
equipment companies were looking to use automation to increase their
manufacturing capacity. In addition, Omron was at the forefront of a
revolutionary trend in Japanese management. Companies were starting to
understand the benefits of focusing on increasing shareholder value.
Companies such as Omron cut costs aggressively, restructured their business
and generated free cash flow. It appeared Omron would share this cash in
the form of dividends. Also, the company may buy back shares - a move that
generally is viewed as favorable by existing shareholders because it tends
to increase the value of the stock. The Japanese government has indicated
it may change present policy and allow companies to do so without severe
tax implications.
Q. WERE THERE ANY PARTICULAR AREAS OR INVESTMENTS THAT DIDN'T TURN OUT AS
WELL AS YOU WOULD HAVE LIKED?
A. Because the fund concentrated heavily on increasing investments in
Japan, it missed opportunities in markets elsewhere in the world that
turned in solid performance, such as Switzerland, Sweden and the United
Kingdom. All three of these markets produced substantial returns, but the
fund had very small levels of investment there. The rationale behind
investing significantly in Japan came from my belief that buying stocks
with low valuations is one way of reducing risk. I didn't invest more in
those European countries because I found overall stock prices to be
expensive. Japan was more attractive because that's where I found better
value and a lower level of inherent risk.
Q. WHAT HAS THE INVESTING ENVIRONMENT BEEN LIKE IN JAPAN, SPECIFICALLY?
A. Many factors - the Kobe earthquake, the subway nerve gas attack, a lack
of consumer confidence, political and banking scandals, and a weakening
economy - depressed the stock market, producing buying opportunities.
Unfortunately, the negative sentiment generated by all of these factors
kept a lid on stock prices for several months. Therefore, it clearly has
taken longer than I anticipated for an upturn in Japan. Nonetheless, it
appears at the present time that business conditions and the economy could
improve slowly. A specific company that was disappointing was Nifco, a
Japanese auto part manufacturer. Auto production in Japan didn't pick up as
much as I had expected and the company's exports declined. As a result, the
share price declined. In addition, trade discussions between the U.S. and
Japan had negative implications, as did news that Japanese auto companies
are going to move production offshore. I also cut back on some European
cyclical stocks - those that rise and fall with the economy - because
business wasn't picking up. Kuoni, for example, a Swiss travel agency
suffered from the economic slowdown, as its business is highly dependent on
leisure travel.
Q. TWO OF THE FUND'S TOP 10 STOCKS - ALUMINUM COMPANY OF AMERICA AND
FALCONBRIDGE OF CANADA - WERE METALS AND MINING STOCKS. WERE YOU PURSUING A
PARTICULAR THEME IN THAT AREA?
A. I targeted nickel and aluminum companies such as these, as well as
Capral Aluminum in Australia and Inco in Canada, because the supply/demand
situation looked positive for these non-ferrous metals. The Canadian stocks
were also attractive in terms of valuations, more so than comparable stocks
in Europe. I also would like to note that while Aluminum Company of America
- - Alcoa - is considered an American stock, it received much of its earnings
and cash flow from its overseas business.
Q. RICK, IN THE PAST THE FUND HAS USED A HEDGING STRATEGY TO REDUCE
CURRENCY RISK - THE RISK THAT MOVEMENTS IN A COUNTRY'S CURRENCY WILL
NEGATIVELY AFFECT THE FUND'S INVESTMENTS THERE. IS THIS STRATEGY STILL IN
PLACE?
A. During the year I reduced the fund's investments in forward foreign
currency contracts, which I had used to hedge foreign currencies. I did so
because these investments hadn't added much value to the fund, and I don't
foresee using them much going forward.
Q. RICK, LET'S DISCUSS YOUR OUTLOOK. WHAT DO YOU SEE HAPPENING OVER THE
NEXT SIX MONTHS?
A. It appears to me that we'll see some economic improvement overseas
within the next six to 12 months. When economies recover, the degree of
earnings growth that companies see in response usually surprises investors.
I've positioned the fund to benefit from a recovering economy in Japan -
where we're already seeing signs of recovery. I would expect to see
earnings growth from the stocks I've invested in to be higher than
expected. The key going forward will be to select those stocks that are
best positioned to benefit from an improving economy. That also could
include capitalizing on European companies whose business is improving.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER,
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.

FUND FACTS
GOAL: growth of capital by investing mainly in the
stocks of foreign companies that own valuable
assets or are undervalued in the marketplace
START DATE: November 1, 1994
SIZE: as of October 31, 1995, more than
$56 million
MANAGER: Richard Mace, since 1994; manager,
Fidelity International Growth & Income Fund,
since 1994; co-manager, Fidelity Global
Balanced Fund, since January 1995, and
February 1993- December 1993; manager,
Fidelity Select Chemicals Portfolio and Fidelity
Select Industrial Materials Portfolio, 1992;
Fidelity Select Transportation Portfolio,
1989-1991; joined Fidelity in 1987
(checkmark)
RICK MACE ON INTERNATIONAL ECONOMIC TRENDS:
"When overseas bond markets perform well,
overseas stock markets often do so as well. That has
not been the case this year. While we've seen a very
strong bond market rally, stock markets have stalled.
Strong bond market performance often is a reflection
of slow economic growth. My belief is that six or 12
months from now, the outlook will be for improving
economies abroad, with earnings estimates outside
the U.S. on the rise. As a result, I'll be looking for
stocks that are positioned to move upward in step
with economic growth.
"To get a read on the direction of worldwide
economies, one can look at the behavior of the three
largest financial institutions in the world - the Bank of
Japan, the Federal Reserve Bank and Germany's
Bundesbank. All three have publicly stated that they
believe the U.S. dollar is undervalued and have
pledged their support to strengthen it. A strong dollar
would help foreign companies with export-oriented
business, because it would reduce their export
prices, thus making their products more competitively
priced abroad. In addition, the three central banks
have expressed their commitment to strengthening
their home economies by lowering interest rates.
Coordinated central bank action is a pretty powerful
policy. This is one of the reasons I believe overseas
economic growth will soon be on the upswing."
DISTRIBUTIONS
The Board of Trustees of Fidelity International Value
Fund voted to pay on December 11, 1995, to
shareholders of record at the opening of business on
December 8, 1995, a distribution of $.30 derived from
capital gains realized from sales of portfolio securities
and a dividend of $.01 from net investment income.
INTERNATIONAL VALUE
INVESTMENT CHANGES

GEOGRAPHIC DIVERSIFICATION
AS OF OCTOBER 31, 1995
Canada 3.1%
United Kingdom 5.0%
Row: 1, Col: 1, Value: 15.5
Row: 1, Col: 2, Value: 14.7
Row: 1, Col: 3, Value: 56.9
Row: 1, Col: 4, Value: 4.8
Row: 1, Col: 5, Value: 5.0
Row: 1, Col: 6, Value: 3.1
Row: 1, Col: 7, Value: 0.0
Row: 1, Col: 8, Value: 0.0
United States 15.5%
France 4.8%
Other 14.7%
Japan 56.9%
AS OF APRIL 30, 1995
United Kingdom 7.2%
Row: 1, Col: 1, Value: 26.1
Row: 1, Col: 2, Value: 12.7
Row: 1, Col: 3, Value: 6.6
Row: 1, Col: 4, Value: 37.3
Row: 1, Col: 5, Value: 6.5
Row: 1, Col: 6, Value: 3.6
Row: 1, Col: 7, Value: 7.2
Row: 1, Col: 8, Value: 0.0
France 3.6%
United States 26.1%
Germany 6.5%
Other 12.7%
Japan 37.3%
Netherlands 6.6%
ASSET ALLOCATION
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Stocks and equity futures 87.1 74.6

Bonds 4.5 1.4

Short-term investments 8.4 24.0

TOP TEN STOCKS
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Omron Corp. 5.3 4.0
(Japan, Electrical Equipment)

Hitachi Ltd. 4.3 4.2
(Japan, Electronics)

Mitsubishi Electric Co. Ord. 4.1 3.2
(Japan, Electrical Equipment)

Ito-Yokado Co. Ltd. 3.1 3.9
(Japan, General Merchandise Stores)

Canon, Inc. 2.7 0.6
(Japan, Computers & Office Equipment)

TDK Corp. 2.3 0.4
(Japan, Electronics)

Aluminum Co. of America 2.0 1.0
(Unites States, Metals & Mining)

Nitto Denko Corp. 1.7 2.5
(Japan, Electronics)

Sony Corp. 1.7 1.8
(Japan, Consumer Electronics)

Falconbridge Ltd. 1.6 0.0
(Canada, Metals & Mining)

TOP TEN MARKET SECTORS
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Technology 21.4 11.8

Industrial Machinery & Equipment 13.1 10.8

Basic Industries 10.7 7.6

Durables 6.6 7.4

Retail & Wholesale 5.7 4.6

Energy 5.4 6.6

Finance 4.4 4.3

Utilities 3.5 9.3

Services 1.8 4.1

Media & Leisure 1.7 1.8

INTERNATIONAL VALUE
INVESTMENTS OCTOBER 31, 1995

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 77.7%
SHARES VALUE (NOTE 1)
AUSTRALIA - 1.4%
Capral Aluminum Ltd. 85,000 $ 193,915
QNI Ltd. 176,500 338,233
Western Mining Holdings Ltd. 44,000 281,732
813,880
AUSTRIA - 0.2%
Mayr Melnhof Karton AG 1,900 110,778
BERMUDA - 0.4%
ADT Ltd. (a) 17,000 238,000
CANADA - 3.1%
Alcan Aluminium Ltd. 20,000 634,065
Canada Occidental Petroleum Ltd. 200 5,876
Falconbridge Ltd.
(1st. installment receipts)(e) 100,000 939,011
Inco Ltd. 6,000 206,396
1,785,348
DENMARK - 0.6%
International Service Systems AS,
Series B 4,500 92,299
Tele Danmark AS Class B 2,500 130,483
Unidanmark AS Class A 2,000 91,933
314,715
FINLAND - 2.3%
Kemira OY 80,000 673,021
Valmet OY Class A 22,500 625,655
1,298,676
FRANCE - 4.8%
Accor SA 1,113 132,443
Alcatel Alsthom CGE 4,000 342,120
Axa SA 2,000 111,254
Elf Aquitaine sponsored ADR 500 16,875
Generale des Eaux 4,078 379,611
Michelin SA Cie Generale des
Etablissements Class B 18,000 728,111
Pechiney International SA 3,000 156,682
Total SA Class B 7,171 443,846
Total SA sponsored ADR 14,000 432,250
2,743,192
GERMANY - 0.9%
Deutsche Bank AG 7,000 316,395
Veba AG (warrants) (a) 1,200 170,802
487,197
HONG KONG - 0.2%
Peregrine Investments Holdings Ltd. 100,000 127,404
ITALY - 0.5%
De Rigo Spa sponsored ADR 100 2,063
Italcementi Fabbriche Ruinite Cemento
Spa, Bergamo 5,000 30,973
Stet (Societa Finanziaria Telefonica) Spa
Ord. 60,000 169,942
Telecom Italia Mobile Spa (a) 30,000 50,545
Telecom Italia Ord. 30,000 46,039
299,562
JAPAN - 47.3%
Acom Co. Ltd. 5,000 163,147
Aiwa Co. Ltd. 5,000 108,765
Amway Japan Ltd. sponsored ADR 10,000 190,000
Bridgestone Corp. 10,000 139,141
Canon, Inc. 90,000 1,543,285

SHARES VALUE (NOTE 1)
Citizen Watch Co. Ltd. Ord. 15,000 $ 103,033
Daiwa Securities Co. Ltd. 50,000 587,918
Fuji Electric Co. Ltd. 69,000 333,320
Fuji Photo Film Co. Ltd. 35,000 867,669
Fujitsu Ltd. 30,000 358,630
Hitachi Ltd. 240,000 2,469,257
Honda Motor Co. Ltd. 13,000 226,740
Hoya Corp. 7,000 205,771
Ito-Yokado Co. Ltd. 32,000 1,752,780
Kobe Steel (a) 110,000 288,864
Konica Corp. 15,000 100,681
Kyocera Corp. 10,000 821,126
Kyocera Corp. (warrants) (a) 30 50,625
Matsushita Electric Industrial Co. Ltd. 60,000 852,482
Mitsubishi Electric Co. Ord. 312,000 2,335,682
Mitsubishi Heavy Industries Ltd. 15,000 115,967
Murata Manufacturing Co. Ltd. 6,000 211,063
NEC Corp. 60,000 793,690
Nichicon Corp. 50,000 676,106
Nifco, Inc. 10,000 118,564
Nihon Unisys Ltd. 5,000 49,973
Nintendo Co. Ltd. Ord. 1,500 110,529
Nippon Shokubai Co. Ltd. 47,000 410,798
Nissan Motor Co. Ltd. Ord. 10,000 67,611
Nitto Denko Corp. 60,000 958,307
Nomura Securities Co. Ltd. 45,000 824,555
Omron Corp. 130,000 3,044,437
Ricoh Co. Ltd. Ord. 50,000 538,925
Rohm Co. Ltd. (warrants) (a) 599 440,092
Sankyo Co. Ltd. 2,000 44,094
Sanyo Electric Co. Ltd. 10,000 51,933
Sekisui Chemical Co. Ltd. 24,000 312,773
Shimamura Corp. 5,000 178,335
Shin-Etsu Chemical Co. Ltd. 5,000 102,396
Sony Corp. 21,000 946,548
TDK Corp. 25,000 1,290,971
Toshiba Corp. 50,000 363,040
Uny Co. Ltd. 40,000 689,824
Wako Electric Co. Ltd. 19,000 457,988
Yamanouchi Pharmaceutical Co. Ltd. 23,000 513,841
Yoshinoya D&C Co. Ltd. Ord. 8 126,990
26,938,266
KOREA (SOUTH) - 0.1%
Samsung Electronics Co. Ltd. (b):
GDR (partial dividend) 6 688
GDS (vtg.) 500 58,500
59,188
MEXICO - 0.1%
Telefonos de Mexico SA sponsored ADR
representing shares Ord. Class L 1,000 27,500
NETHERLANDS - 1.8%
AKZO NV Ord. 1,000 113,857
Heineken NV 500 88,703
Hoogovens en Staalfabrieken 100 3,421
KLM Royal Dutch Airlines Ord. 204 6,734
Koninklijke PPT Nederland 15,000 527,466
Philips Electronics NV (Bearer) 3,500 135,272
Vendex International NV 3,000 86,485
Vendex International NV (b) 3,000 86,485
1,048,423
NETHERLANDS ANTILLES - 0.7%
Schlumberger Ltd. 6,000 373,500
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
NEW ZEALAND - 0.3%
Brierley Investments Ltd. 200,000 $ 155,465
NORWAY - 1.8%
Fokus Bank AS (a) 7,100 37,636
Fokus Bank AS (a) (b) 4,000 21,203
Helikopter Services AS 10,000 125,291
Kverneland Gruppen AS 4,800 83,270
Saga Petroleum AS Class B 14,000 168,661
Smedvig AS 4,800 83,270
Transocean Drilling AS (a) 34,000 518,834
1,038,165
RUSSIA - 0.0%
Mosenergo AO sponsored ADR (a)(b) 3,000 26,250
SPAIN - 0.9%
Banco Bilbao Vizcaya SA Ord. (Reg.) 3,000 91,721
Tabacalera SA, Series A 12,000 403,279
495,000
SWEDEN - 2.1%
Atlas Copco AB Class A Free shares 3,000 45,480
Electrolux AB 5,000 214,201
Esselte AB Class B Free shares 16,000 235,319
Svedala Industri 10,000 254,175
Volvo AB Class B 20,000 451,028
1,200,203
SWITZERLAND - 0.3%
Kuoni Reisen Holding AG Class B (Reg.) 100 159,261
UNITED KINGDOM - 5.0%
BET PLC Ord. 300,000 597,429
British Petroleum PLC:
ADR 5,000 441,250
Ord. 51,095 375,514
Cookson Group 100,000 463,087
Eurocamp PLC 18,000 64,864
Forte PLC 40,000 159,314
London Clubs International PLC 10,000 64,959
Telegraph (The) PLC 30,000 193,453
Vodafone Group PLC sponsored ADR 3,000 122,625
WPP Group PLC 58,900 142,430
Wickes PLC 100,000 196,768
2,821,693
UNITED STATES OF AMERICA - 2.9%
Aluminum Co. of America 22,000 1,122,000
American Express Co. 500 20,313
Limited, Inc. (The) 3,000 55,125
Pride Petroleum Services, Inc. (a) 5,000 43,750
Reynolds Metals Co. 1,000 50,375
Roadway Services, Inc. 5,000 223,750
Sonat Offshore Drilling, Inc. 5,000 158,750
1,674,063
TOTAL COMMON STOCKS
(Cost $42,602,920) 44,235,729
NONCONVERTIBLE PREFERRED STOCKS- 0.1%
ITALY - 0.1%
Italmobiliare Spa (Milano)
(Cost $106,220) 10,000 78,115
CONVERTIBLE BONDS - 0.3%
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) AMOUNT (C) (NOTE 1)
JAPAN - 0.3%
Matsushita Electric Works Co.
Ltd. 2.70%, 5/31/02
(Cost $194,038) - JPY 15,000,000 $ 167,850
GOVERNMENT OBLIGATIONS - 5.5%
UNITED STATES OF AMERICA - 5.5%
U.S. Treasury Bill yield at time of
purchase 5 1/4%, 12/7/95 Aaa $ 370,000 368,132
U.S. Treasury Notes:
9 1/4%, 1/15/96 Aaa 390,000 392,742
6 1/2%, 5/15/97 Aaa 390,000 394,937
8 3/4%, 10/15/97 Aaa 370,000 391,042
9 1/4%, 8/15/98 Aaa 370,000 403,300
5 1/8%, 12/31/98 (d) Aaa 410,000 402,952
8 7/8%, 2/15/99 Aaa 370,000 404,166
9 1/8%, 5/15/99 Aaa 360,000 398,081
TOTAL GOVERNMENT OBLIGATIONS
(Cost $3,135,568) 3,155,352
REPURCHASE AGREEMENTS - 16.4%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a
joint trading account at 5.88%,
dated 10/31/95 due 11/1/95 $ 9,319,522 9,318,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $55,356,746) $56,955,046
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT OF VALUE GAIN/(LOSS)
PURCHASED
60 Nikkei Stock Average
Contracts Dec. 1995 $ 5,299,500 $(12,077)
THE FACE VALUE OF FUTURES PURCHASED AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 9.3%
CURRENCY ABBREVIATIONS
JPY - Japanese yen
LEGEND
1. Non-income producing
2. 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 $193,126 or 0.3% of net
assets.
3. Principal amount is stated in United States dollars unless otherwise
noted.
4. Security pledged to cover margin requirements for futures contracts. At
the period end, the value of securities pledged amounted to $402,952.
5. Purchased on an installment basis. Market value reflects only those
payments made through October 31, 1995. The remaining installments
aggregating CAD $1,900,000 are due July 31, 1996 and January 31, 1997.
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 5.5% AAA, AA, A 5.5%
Baa 0.0% BBB 0.0%
Ba 0.0% BB 0.0%
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 0.3%.
Purchases and sales of securities, other than short-term securities,
aggregated $85,408,600 and $42,316,313, respectively, of which U.S.
government and government agency obligations aggregated $3,821,442 and
$1,487,639, respectively.
The market value of futures contracts opened and closed during the period
amounted to $24,976,540 and $19,972,963, respectively (see Note 2 of Notes
to Financial Statements).
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 $16,341 for the period (see Note 4 of Notes to Financial
Statements).
INCOME TAX INFORMATION
At October 31, 1995, the aggregate cost of investment securities for income
tax purposes was $55,387,527. Net unrealized appreciation aggregated
$1,567,519, of which $2,919,292 related to appreciated investment
securities and $1,351,773 related to depreciated investment securities.
The fund hereby designates $172,000 as a capital gain dividend for the
purpose of the dividend paid deduction.
For the period, interest and dividends from foreign countries were $767,392
or $0.14 per share. Taxes accrued or paid to foreign countries were
$105,096 or $0.02 per share.
MARKET SECTOR DIVERSIFICATION (UNAUDITED)
As a Percentage of Total Value of Investment in Securities
Basic Industries 10.7%
Construction & Real Estate 0.1
Durables 6.6
Energy 5.4
Finance 4.4
Government Obligations 5.5
Health 1.3
Holding Companies 0.4
Industrial Machinery & Equipment 13.1
Media & Leisure 1.7
Nondurables 0.9
Precious Metals 0.5
Repurchase Agreements 16.4
Retail & Wholesale 5.7
Services 1.8
Technology 21.4
Transportation 0.6
Utilities 3.5
100.0%
INTERNATIONAL VALUE
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
OCTOBER 31, 1995

ASSETS

Investment in securities, at value (including repurchase agreements of $9,318,000) (cost $55,356,746) - See $ 56,955,046
accompanying schedule

Cash 311

Receivable for investments sold 1,295,124

Receivable for fund shares sold 401,705

Dividends receivable 128,778

Interest receivable 61,483

Receivable for daily variation on futures contracts 22,500

TOTAL ASSETS 58,864,947

LIABILITIES

Payable for investments purchased $ 1,307,258

Payable for fund shares redeemed 571,859

Accrued management fee 36,386

Other payables and accrued expenses 121,244

TOTAL LIABILITIES 2,036,747

NET ASSETS $ 56,828,200

Net Assets consist of:

Paid in capital $ 52,744,905

Undistributed net investment income 36,632

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions 2,462,124

Net unrealized appreciation (depreciation) on investments 1,584,539
and assets and liabilities in
foreign currencies

NET ASSETS, for 5,348,536 shares outstanding $ 56,828,200

NET ASSET VALUE, offering price $10.63
and redemption price per share ($56,828,200 (divided by) 5,348,536 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
NOVEMBER 1, 1994 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1995

INVESTMENT INCOME $ 737,040
Dividends

Interest 692,542

1,429,582

Less foreign taxes withheld (105,096
)

TOTAL INCOME 1,324,486

EXPENSES

Management fee $ 361,109

Transfer agent fees 181,666

Accounting fees and expenses 44,123

Non-interested trustees' compensation 158

Custodian fees and expenses 78,481

Registration fees 117,201

Audit 28,964

Legal 1,903

Miscellaneous 417

TOTAL EXPENSES 814,022

NET INVESTMENT INCOME 510,464

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

Investment securities 2,183,044

Foreign currency transactions (502,752
)

Futures contracts 308,000 1,988,292

Change in net unrealized appreciation (depreciation) on:

Investment securities 1,598,300

Assets and liabilities in foreign currencies (1,684
)

Futures contracts (12,077 1,584,539
)

NET GAIN (LOSS) 3,572,831

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 4,083,295

OTHER INFORMATION

Accounting fees paid to FSC $43,939

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS NOVEMBER 1, 1994
(COMMENCEMENT
OF OPERATIONS) TO
OCTOBER 31,
1995

<TABLE>
<CAPTION>
<S> <C>
Operations $ 510,464
Net investment income

Net realized gain (loss) 1,988,292

Change in net unrealized appreciation (depreciation) 1,584,539

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 4,083,295

Share transactions 164,834,882
Net proceeds from sales of shares

Cost of shares redeemed (112,089,977)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS 52,744,905

TOTAL INCREASE (DECREASE) IN NET ASSETS 56,828,200

NET ASSETS

Beginning of period -

End of period (including undistributed net investment income of $36,632) $ 56,828,200

OTHER INFORMATION
Shares

Sold 16,269,212

Redeemed (10,920,676)

Net increase (decrease) 5,348,536

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.

</TABLE>

FINANCIAL HIGHLIGHTS
ISELECTED PER-SHARE DATA NOVEMBER 1, 1994
(COMMENCEMENT
OF OPERATIONS) TO
OCTOBER 31,
1995

<TABLE>
<CAPTION>
<S> <C>
Net asset value, beginning of period $ 10.00

Income from Investment Operations

Net investment income .11A

Net realized and unrealized gain (loss) .52

Total from investment operations .63

Net asset value, end of period $ 10.63

TOTAL RETURN 6.30%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 56,828

Ratio of expenses to average net assets 1.72%

Ratio of net investment income to average net assets 1.08%

Portfolio turnover rate 109%

A NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD.

</TABLE>

OVERSEAS
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
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (income) and capital gains (the profits the
fund earns when it sells securities that have grown in value). The 3% sales
charge was eliminated July 1, 1995.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED PAST 1 PAST 5 PAST 10
OCTOBER 31, 1995 YEAR YEARS YEARS

OVERSEAS -0.34% 36.87% 290.47%

OVERSEAS
(INCL. 3% SALES CHARGE) -3.33% 32.76% 278.76%

Morgan Stanley EAFE Index -0.37% 39.94% 265.72%

Average International Fund -1.09% 53.21% 252.05%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one year, five years, or 10 years. For
example, if you invested $1,000 in a fund that had a 5% return over the
past year, the value of your investment would be $1,050. You can compare
the fund's returns to the performance of the Morgan Stanley EAFE index - a
broad measure of the performance of stocks in Europe, Australia, and the
Far East. To measure how the fund's performance stacked up against its
peers, you can compare it to the average international fund, which reflects
the performance of 233 funds with similar objectives tracked by Lipper
Analytical Services over the past 12 months. These benchmarks include
reinvested dividends and capital gains, if any, and exclude the effects of
sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED PAST 1 PAST 5 PAST 10
OCTOBER 31, 1995 YEAR YEARS YEARS

OVERSEAS -0.34% 6.48% 14.59%

OVERSEAS (INCL. 3% SALES CHARGE) -3.33% 5.83% 14.24%

Morgan Stanley EAFE Index -0.37% 6.95% 13.85%

Average International Fund -1.09% 8.71% 13.12%

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 TEN YEARS
Overseas (094) Europe, Australi
10/31/85 9700.00 10000.00
11/30/85 10394.60 10410.51
12/31/85 11202.17 10903.60
01/31/86 11539.77 11176.94
02/28/86 13240.04 12415.05
03/31/86 15517.31 14160.85
04/30/86 15996.08 15088.13
05/31/86 15486.62 14417.53
06/30/86 16695.84 15399.09
07/31/86 18580.26 16349.87
08/31/86 19814.03 17960.80
09/30/86 18893.30 17776.03
10/31/86 16517.83 16588.53
11/30/86 18064.65 17545.08
12/31/86 18959.44 18474.68
01/31/87 21877.19 20437.82
02/28/87 22579.13 21049.47
03/31/87 25132.27 22774.34
04/30/87 27011.00 25184.11
05/31/87 26907.77 25184.02
06/30/87 25015.28 24381.67
07/31/87 25386.90 24339.08
08/31/87 27499.60 26164.06
09/30/87 27162.40 25752.15
10/31/87 21264.71 22031.43
11/30/87 21092.66 22361.89
12/31/87 22441.85 23025.89
01/31/88 21569.32 23436.99
02/29/88 22254.20 24999.23
03/31/88 23605.22 26536.33
04/30/88 24224.43 26921.95
05/31/88 23736.57 26058.94
06/30/88 23061.06 25372.07
07/31/88 22760.83 26168.09
08/31/88 22075.95 24466.68
09/30/88 22901.57 25535.74
10/31/88 23736.57 27720.64
11/30/88 24355.78 29371.85
12/31/88 24294.85 29535.62
01/31/89 24592.53 30055.28
02/28/89 25235.91 30209.77
03/31/89 25015.05 29616.86
04/30/89 25552.80 29891.55
05/31/89 24323.66 28265.35
06/30/89 23613.06 27789.54
07/31/89 25956.12 31279.16
08/31/89 25351.15 29872.42
09/30/89 26705.13 31233.16
10/31/89 25255.12 29978.29
11/30/89 26685.92 31485.29
12/31/89 28408.82 32647.00
01/31/90 27764.08 31432.26
02/28/90 27189.86 29238.46
03/31/90 28086.45 26192.51
04/30/90 28015.93 25984.65
05/31/90 29919.92 28949.53
06/30/90 30453.85 28694.55
07/31/90 31954.88 29098.73
08/31/90 28418.89 26273.00
09/30/90 25265.71 22611.48
10/31/90 27673.41 26134.77
11/30/90 26756.67 24593.13
12/31/90 26533.15 24991.53
01/31/91 27121.82 25799.88
02/28/91 28106.51 28565.60
03/31/91 27186.04 26850.74
04/30/91 27571.36 27114.42
05/31/91 27624.87 27397.34
06/30/91 25890.96 25384.16
07/31/91 27303.78 26631.33
08/31/91 27507.14 26090.50
09/30/91 28716.59 27560.93
10/31/91 28812.92 27951.64
11/30/91 27774.72 26646.73
12/31/91 28818.56 28022.85
01/31/92 29149.41 27424.28
02/29/92 28544.75 26442.71
03/31/92 27951.49 24697.06
04/30/92 29651.40 24814.46
05/31/92 30929.18 26475.43
06/30/92 30199.02 25219.64
07/31/92 28282.35 24574.19
08/31/92 28042.76 26115.51
09/30/92 26879.07 25599.80
10/31/92 25053.66 24256.97
11/30/92 24928.17 24485.23
12/31/92 25517.18 24611.88
01/31/93 26260.90 24608.85
02/28/93 26799.45 25352.21
03/31/93 28620.28 27562.05
04/30/93 30607.80 30177.76
05/31/93 31313.04 30815.11
06/30/93 30569.33 30334.33
07/31/93 31967.00 31396.18
08/31/93 33775.00 33091.04
09/30/93 33480.08 32346.18
10/31/93 34826.46 33343.01
11/30/93 33236.45 30428.48
12/31/93 35737.86 32625.64
01/31/94 38278.47 35383.99
02/28/94 37561.88 35285.98
03/31/94 36480.50 33766.17
04/30/94 37705.20 35198.84
05/31/94 37223.14 34996.75
06/30/94 36728.04 35491.32
07/31/94 37757.32 35832.64
08/31/94 38304.52 36680.99
09/30/94 37249.19 35525.70
10/31/94 38004.86 36708.70
11/30/94 36441.41 34944.47
12/31/94 36192.03 35163.29
01/31/95 34640.94 33812.47
02/28/95 34667.46 33715.43
03/31/95 35701.51 35818.30
04/30/95 36722.31 37165.38
05/31/95 37239.34 36722.35
06/30/95 37517.74 36078.36
07/31/95 39201.40 38324.46
08/31/95 38114.32 36862.52
09/30/95 38644.60 37582.45
10/31/95 37875.69 36572.22

Let's say you invested $10,000 in Fidelity Overseas Fund on October 31,
1985, and paid the 3% sales charge. By October 31, 1995, the value of your
investment would have grown to $37,876 - a 278.76% increase on your initial
investment. That compares to $10,000 invested in the Morgan Stanley EAFE
index, which would have grown to $36,572 over the same period - a 265.72%
increase.

An interview with John Hickling, Portfolio Manager of Fidelity Overseas
Fund
Q. JOHN, HOW HAS THE FUND PERFORMED OVER THE PAST YEAR?
A. For the 12 months ended October 31, 1995, the fund had a total return of
- -0.34%, compared to a -1.09% return for the average international fund
tracked by Lipper Analytical Services. In addition, the Morgan Stanley EAFE
Index - a broad measure of stocks in Europe, Australia and the Far East -
returned -0.37% for the same 12-month period.
Q. WHAT HAS THE ENVIRONMENT BEEN LIKE FOR OVERSEAS INVESTING OVER THE PAST
YEAR?
A. It's been a frustrating period because, historically, markets around the
world often perform well when the U.S. market does. The U.S. market
performance has overshadowed foreign markets. And in those few markets that
have done well, performance has been driven largely by strong returns for
stocks that make up a large portion of foreign indexes. For example, the
overall positive return seen in Finland and Sweden largely resulted from
stock price gains from Nokia and Ericsson, respectively, both of which are
tied to cellular equipment manufacturing. Both stocks rose along with the
strong move in technology stocks seen in the U.S. this year, but dropped
somewhat toward the end of the period. Outside of these two stocks, those
two markets did not perform that well.
Q. HOW HAVE YOU POSITIONED THE FUND?
A. Japan was the country best represented in the fund -18.8% at the end of
the period - although the fund has held less there than is included in the
EAFE index. This is a market that has struggled through most of the year,
although it has shown recent signs of some strength. The Japanese banking
sector performed well through the first part of the period, although the
fund didn't participate because most of its Japanese investments were
focused on exporters or companies with electronics or technology-oriented
businesses, such as Matsushita Electric, Hitachi, Rohm, Omron, Toshiba and
Kyocera. In the second part of the period, however, these stocks rebounded
as the yen started to weaken versus the dollar starting in June, making
these companies' products less expensive abroad.
Q. YOU'VE ALSO INVESTED A FAIR AMOUNT IN THE UNITED KINGDOM . . .
A. That's right, 14.2%, about as much as is included in the EAFE index.
This has been one of the best performing markets outside of the U.S., led
for the most part by financial stocks including Barclays and National
Westminster Bank. In the early part of 1995, a number of consumer
nondurable stocks helped the fund, including brewers Bass and Whitbread,
and food retailers Tesco, Argyll and Sainsbury's. The retailers were helped
by food price inflation and a more orderly competitive environment, but
lagged a bit during the past two months due to fears of new price
competition.
Q. YOU MENTIONED BARCLAYS AND NATIONAL WESTMINSTER BANK. HAVE YOU INVESTED
IN OTHER EUROPEAN BANKS?
A. Yes, I have. I've invested the fund in stocks such as Deutsche Bank,
C.S. Holdings, Swiss Bank Corp., Creditanstalt in Austria and BNP and
Societe Generale - which the fund no longer owns - in France. Despite
strong bond market performance in Europe - one of the reasons I invested in
this area - the sector has turned in mixed results. Instead of being
attracted by bond market sensitivity, investors apparently were cautious
about the quality of both bank assets and credit. Relatively high property
prices hurt the French banks, one of the reasons I've cut back there. But
the fund still held continental European bank stocks, because I believed
that they would rebound, and remained more invested in Europe than the
index, because I found valuations - stock prices compared to other measures
such as earnings or cash flow - to be attractive.
Q. LET'S TURN TO EMERGING MARKETS . . .
A. Last December, when emerging markets dropped sharply after Mexico's
devaluation of the peso, I had almost no investments in emerging markets. I
started adding some emerging market stocks in May, including Mexican banks
such as Bancomer, as well as investments in Brazil, Chile and Southeast
Asia. I traveled to Central Europe as well, looking for new opportunities,
but did not find anything I was interested in for now. One stock that has
turned in a very good performance is Sampoerna, an Indonesian cigarette
company. One of the main reasons I owned this stock and Matahari, an
Indonesian retailer, is that the standard of living for many Indonesians is
on the rise. With wages and disposable income growing, demand for items
such as cigarettes, beer, toothpaste and clothing is on the rise. The
fund's investments in Unilever and Nestle also gave it some exposure to
this growth in consumer nondurable spending.
Q. NOMURA SECURITIES AND VOLVO ARE TWO OF THE FUND'S TOP INVESTMENTS. WHAT
ARE THE STORIES BEHIND THEM?
A. I invested in Nomura Securities to try to take advantage of a turnaround
in Japan. When trading volume increases - which it had during the last part
of the period - Nomura is well poised to profit. Nomura's valuation has
been attractive due to the depressed Japanese market, and the company also
has been cutting costs, which should help its balance sheet. Volvo has been
attractive most of all because it has been a cheap stock. Although it has a
small market share in the U.S., it has successfully introduced a new
product line, the 850. It also is one of the best truck manufacturers in
the world, producing a new model when other companies have not.
Q. WHAT'S YOUR OUTLOOK FOR THE NEXT SIX MONTHS?
A. In the past, there has been a stronger correlation between the U.S.
market and those overseas, but we haven't seen that yet this year. Japan's
market might be helped by upcoming legislation that would make it easier
for companies to buy back stock. In addition, the coming season
historically has been a good one in Japan, so I'm hoping to see some
strength there. In Europe, I would expect to see a continued economic
slowdown, hoping that currencies will weaken enough to help exports. In any
event, I'm hoping that 1996 will be a better year for the international
investor, and that we'll see markets abroad catch up to the U.S. Up until
now, most of the domestic investment dollar has stayed in the U.S.,
because, in general, it has the most efficient markets, the best analysts,
and companies that are more dedicated to shareholder value. I'm hoping
we'll see some signs of rebound in overseas markets, with investors finding
better buys abroad than domestically.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER,
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.

FUND FACTS
GOAL: long-term growth of capital by investing
in equity securities outside the United States
START DATE: December 4, 1984
SIZE: as of October 31, 1995, more than
$2.2 billion
MANAGER: John Hickling, since 1993;
manager, Fidelity Advisor Overseas Fund,
since 1993; Fidelity VIP: Overseas, since
1993; Fidelity Advisor Annuity Overseas Fund,
since January 1995; previously managed the
Fidelity Japan, Fidelity Europe, Fidelity
International Growth & Income, Fidelity
International Opportunities (now Fidelity
Emerging Markets) and Fidelity Pacific Basin
funds; joined Fidelity in 1982
(checkmark)
JOHN HICKLING ON TRENDS IN INTERNATIONAL INVESTING:
"These days, the investor dollar is focused mostly on
the U.S. Judging from flows into and out of
international funds, the interest - and money - is
elsewhere. Unfortunately, many investors tend to
follow performance rather than anticipating it. It may
take a stumble in the U.S. market to change this, but I
hope not, because historically a declining U.S.
market has not been a good backdrop for
performance overseas. I'm hoping that more
investors will start to perceive the value and
opportunities in foreign markets, and that
performance in foreign markets will start to capture
attention.
At the beginning of the year, I was quite optimistic
based on what I saw in the U.S. Interest rates had
gone up a lot, the economy looked as if it were slowing
and investor sentiment was pretty negative. That
indicated to me that perhaps the market had bottomed
and was ready to turn. It looked that way in foreign
markets as well. Ten months later, the U.S. has been
phenomenal, while markets outside the U.S have
underperformed markedly. Some companies with
business prospects similar to American firms' have
moved down while those in the U.S. have gone up.
"This situation has been frustrating. Yet because of
what we've seen through market history, I'm hoping
that foreign markets and foreign companies can catch
up to the U.S. In the meantime, there must be
opportunities when stocks have struggled, and that's
what I'll be looking for going forward."
(solid bullet) Over the past few months, European cyclical stocks
- - those that rise and fall with the economy - have
seen sharp drops. This underperformance - seen in
paper and chemical stocks, among others - has
resulted from uncertainty over the economic outlook.
The fund's performance relative to its competitors and
the Morgan Stanley EAFE Index was helped by its
relative avoidance of these kinds of investments.
DISTRIBUTIONS
The Board of Trustees of Fidelity Overseas Fund
voted to pay on December 11, 1995, to shareholders
of record at the opening of business on December 8,
1995, a distribution of $.35 derived from capital gains
realized from sales of portfolio securities and a
dividend of $.34 from net investment income.
OVERSEAS
INVESTMENT CHANGES

GEOGRAPHIC DIVERSIFICATION
AS OF OCTOBER 31, 1995

Italy 3.1%
United States 11.1%
France 4.8%
Row: 1, Col: 1, Value: 11.1
Row: 1, Col: 2, Value: 14.2
Row: 1, Col: 3, Value: 8.699999999999999
Row: 1, Col: 4, Value: 4.2
Row: 1, Col: 5, Value: 19.5
Row: 1, Col: 6, Value: 6.5
Row: 1, Col: 7, Value: 18.8
Row: 1, Col: 8, Value: 3.3
Row: 1, Col: 9, Value: 5.8
Row: 1, Col: 10, Value: 4.8
Row: 1, Col: 11, Value: 3.1
Germany 5.8%
United Kingdom
14.2%
Sweden 3.3%
Japan 18.8%
Switzerland 8.7%
Spain 4.2%
Netherlands 6.5%
Other 19.5%
AS OF APRIL 30, 1995
France 8.6%
United States 12.0%
Row: 1, Col: 1, Value: 12.0
Row: 1, Col: 2, Value: 12.7
Row: 1, Col: 3, Value: 8.1
Row: 1, Col: 4, Value: 3.7
Row: 1, Col: 5, Value: 20.4
Row: 1, Col: 6, Value: 6.1
Row: 1, Col: 7, Value: 19.5
Row: 1, Col: 8, Value: 3.4
Row: 1, Col: 9, Value: 5.5
Row: 1, Col: 10, Value: 8.6
Germany 5.5%
United Kingdom
12.7%
Sweden 3.4%
Japan 19.5%
Switzerland 8.1%
Spain 3.7%
Netherlands 6.1%
Other 20.4%
ASSET ALLOCATION
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Stocks and closed-end
investment companies 88.2 86.5

Bonds 0.7 1.5

Short-term investments 11.1 12.0

TOP TEN STOCKS
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

C.S. Holdings 2.0 1.6
(Switzerland, Banks)

Unilever NV Ord. 1.3 1.1
(Netherlands, Household Products)

Deutsche Bank AG 1.2 1.1
(Germany, Banks)

Volvo AB Class B 1.1 0.8
(Sweden, Automotive)

CIBA-GEIGY AG (Reg.) 1.1 0.8
(Switzerland, Drugs & Pharmaceuticals)

Swiss Bank Corp. (Bearer) 1.1 1.1
(Switzerland, Banks)

International Nederlanden Groep 1.0 0.8
(Netherlands, Insurance)

Nomura Securities Co. Ltd. 1.0 1.0
(Japan, Securities Industry)

Nestle SA (Reg.) 0.9 1.1
(Switzerland, Foods)

Hitachi Ltd. 0.9 0.9
(Japan, Electronics)

TOP TEN MARKET SECTORS
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Finance 24.0 23.4

Utilities 8.8 7.7

Nondurables 8.4 7.5

Durables 7.3 8.5

Technology 6.0 4.9

Basic Industries 5.7 5.6

Retail & Wholesale 5.6 4.4

Construction & Real Estate 3.8 2.7

Health 3.6 4.4

Industrial Machinery & Equipment 3.3 3.2

OVERSEAS
INVESTMENTS OCTOBER 31, 1995

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 86.0%
SHARES VALUE (NOTE 1)
ARGENTINA - 0.8%
Buenos Aires Embotelladora SA
sponsored ADR 72,200 $ 1,651,575
Perez Companc Class B 590,826 2,605,412
Telecom Argentina sponsored ADR
Class B 162,230 6,225,576
Telecom Argentina Stet France
Telecom SA 473,300 1,822,114
YPF Sociedad Anonima sponsored ADR
representing Class D shares 257,700 4,413,113
16,717,790
AUSTRALIA - 2.2%
Amcor Ltd. 346,600 2,593,548
Brambles Industries Ltd. 541,000 5,743,192
FAI Insurance Ltd. Ord. 3,866,800 1,734,900
Lend Lease Corp. Ltd. 190,000 2,638,305
Pioneer International Ltd. 966,700 2,367,109
Qantas Airways Ltd. sponsored
ADR (a)(b) 68,700 1,210,838
TNT Ltd. (a) 2,094,200 2,946,189
Western Mining Holdings Ltd. 820,800 5,255,573
Westpac Banking Corp. 4,924,181 20,183,359
Woolworths Ltd. 1,808,800 4,305,321
48,978,334
AUSTRIA - 0.3%
Mayr Melnhof Karton AG 39,000 2,273,869
VA Technologie AG 13,900 1,609,643
VA Technologie AG (b) 24,000 2,779,240
6,662,752
BELGIUM - 1.2%
Bekaert SA 20,245 14,895,285
Delhaize Freres & Cie Le Lion SA 238,300 9,268,594
Petrofina SA 10,200 3,206,218
Petrofina SA (warrants)(a) 1,105 15,649
27,385,746
BERMUDA - 0.1%
Consolidated Electric Power Asia Ltd.
sponsored ADR (b) 70,700 1,431,675
BRAZIL - 0.5%
Brahma (Cia Cervejaria) PN
Class B (Pfd. Reg.) 5,719,000 2,182,915
Coteminas PN 4,900,000 1,528,861
Telebras PN (Pfd. Reg.) 184,248,415 7,471,494
11,183,270
CANADA - 0.5%
Midland Walwyn, Inc. 480,800 2,950,242
Noranda, Inc. 460,700 9,208,860
12,159,102
CHILE - 0.2%
Santa Isabel SA sponsored ADR (a) 49,000 1,108,625
Vina Concha Stet y Toro SA
sponsored ADR 164,200 2,873,500
3,982,125
FINLAND - 0.8%
Pohjola Class B 680,670 9,944,867
Valmet OY Class A 259,200 7,207,550
17,152,417

SHARES VALUE (NOTE 1)
FRANCE - 4.8%
Accor SA 109,318 $ 13,008,450
Alcatel Alsthom CGE 115,100 9,844,498
Axa SA 215,665 11,996,849
Club Mediterranee SA:
Ord. 51,400 4,037,256
(rights)(a) 51,400 50,742
Compagnie Bancaire Ord. 112,420 11,673,720
Elf Aquitaine 97,044 6,618,669
Generale des Eaux 110,077 10,246,799
IMETAL SA Ord. 65,800 7,762,581
Lafarge Coppee SA 75,600 5,018,323
Michelin SA Cie Generale des
Etablissements Class B 191,100 7,730,108
Total SA Class B 256,400 15,869,755
Vallourec SA (a) 105,600 4,150,464
108,008,214
GERMANY - 5.5%
Asko 6,500 3,373,088
Bayer AG 21,500 5,714,407
Bayerische Vereinsbank AG Ord. 182,600 5,165,662
Continental Gummi-Werke AG 443,000 6,258,261
Daimler Benz AG Ord. 16,000 7,706,670
Deutsche Bank AG 586,900 26,527,472
Duerr Beteiligungs AG (RFD) 16,573 5,353,150
Hoechst AG Ord. 47,750 12,531,981
Karstadt AG 20,900 9,109,857
Kaufhof Holding AG 26,600 9,101,764
Mannesmann AG Ord. 30,000 9,866,894
Metallgesellschaft AG (a)(b) 154,600 3,215,689
Metallgesellschaft AG Ord. (a) 53,500 1,112,803
Praktiker Bau und Heim AG (a)(b) 19,000 600,220
Schmalbach-Lubeca AG 7,700 1,514,145
Veba AG Ord. 366,900 15,052,107
122,204,170
HONG KONG - 2.6%
Amoy Properties Ltd. 3,399,000 3,275,329
Consolidated Electric Power Asia Ltd. 2,110,000 4,271,145
Dickson Concepts International Ltd. 4,277,000 3,097,953
Great Eagle Holdings Ltd. 1,166,000 3,197,289
HSBC Holdings PLC 1,416,000 20,604,555
Hong Kong Land Holdings Ltd. 4,078,000 7,340,400
Hopewell Holdings Ltd. 6,992,000 4,408,831
Hysan Development Co. Ltd. 2,255,000 5,745,929
Jardine Strategic Holdings Ltd. Ord. 894,500 2,406,205
Peregrine Investments Holdings Ltd. 2,022,000 2,576,113
Sun Hung Kai Properties Ltd. 266,000 2,124,546
59,048,295
INDIA - 0.1%
Reliance Industries Ltd. GDS 181,700 2,680,075
INDONESIA - 1.3%
Astra International PT (For. Reg.) 440,000 881,551
Bank International Indonesia PT Ord. 1,556,300 5,448,082
Bank Niaga PT 533,500 1,902,842
Jakarta International Hotels &
Development Ord. 3,017,400 4,152,084
Matahari Putra Prima PT (For. Reg.) 1,979,500 4,140,305
Sampoerna Hanjaya Mandala
(For. Reg.) 1,214,900 11,234,223
Semen Gresik (For. Reg.) 607,000 1,576,972
29,336,059
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
IRELAND - 1.0%
Bank of Ireland U.S. Holdings, Inc. 1,660,200 $ 11,073,053
Fyffes PLC 2,367,000 3,628,812
Independent Newspapers PLC 940,650 5,642,016
Waterford Wedgwood PLC Unit 1,622,200 1,474,235
21,818,116
ITALY - 1.7%
Assicurazioni Generali Spa 304,560 7,081,298
Benetton Group Spa 266,600 2,763,259
Bulgari Spa (a) 300,000 2,597,393
Fiat Spa 723,200 2,358,780
Istituto Mobiliare Italiano 545,700 2,984,247
Istituto Nazionale Delle Assicurazioni
Spa 2,026,900 2,664,746
Italgas Spa 1,173,800 3,123,250
Magneti Marelli Spa 2,131,400 4,085,325
Montedison Spa Ord. (a) 4,538,600 3,120,333
Olivetti Ing C & Co. Spa Ord. 3,074,400 2,310,752
SAI (Sta Assieuratrice Industriale) Spa 412,500 4,203,937
37,293,320
JAPAN - 18.8%
ADO Electronic Industrial Co. Ltd. 76,000 1,712,802
Aida Engineering Ltd. Ord. 314,000 2,209,123
Amada Metrecs Co. Ltd. 162,000 2,190,584
Amadasonoike Co. Ltd. 495,000 3,036,304
Aoyama Trading Co. Ord. 209,500 5,665,768
Autobacs Seven Co. Ltd. 34,700 3,281,123
Bridgestone Corp. 586,000 8,153,643
Canon, Inc. 756,000 12,963,598
Citizen Watch Co. Ltd. Ord. 753,000 5,172,240
Daiwa House Industry Co. Ltd.
(warrants) (a) 75 41,250
East Japan Railway Co. Ord. 1,100 5,206,016
Fanuc Ltd. 161,600 7,014,727
Fujitsu Ltd. 1,274,000 15,229,827
Futaba Industrial Co. Ltd. 245,000 3,697,026
Hanshin Department Store Ltd. 72,000 504,434
Hirose Electric Co. Ltd. 51,450 3,292,034
Hitachi Ltd. 2,049,000 21,081,280
Honda Motor Co. Ltd. 863,000 15,052,080
Isetan Co. Ltd. 511,000 6,809,661
Ishihara Sangyo Kaisha Ltd. (a) 657,000 1,957,062
Ito-Yokado Co. Ltd. 49,000 2,683,945
Izumi Co. Ord. 203,000 3,858,900
Japan Airlines Co. Ltd. (a) 623,000 3,754,299
Kao Corp. 226,000 2,745,970
Komatsu Ltd. Ord. 693,000 5,432,365
Marubeni Corp. 662,000 3,230,376
Marukyo Corp. 55,000 786,831
Matsushita Electric Industrial Co. Ltd. 513,000 7,288,717
Minebea Co. Ltd. 924,000 7,514,771
Mitsubishi Estate Co. Ltd. 443,000 4,731,468
Mitsubishi Heavy Industries Ltd. 898,000 6,942,551
Mitsukoshi Ltd. 577,000 4,585,243
Murata Manufacturing Co. Ltd. 233,000 8,196,267
NEC Corp. 348,000 4,603,400
Nichido Fire & Marine Insurance
Co. Ltd. 912,000 6,836,314
Nikko Securities Co. Ltd. 612,000 5,720,915
Nintendo Co. Ltd. Ord. 79,900 5,887,492
Nippon Telegraph & Telephone Corp.
Ord. 709 5,828,730
Nissan Motor Co. Ltd. Ord. 740,000 5,003,185

SHARES VALUE (NOTE 1)
Nitto Denko Corp. 175,000 $ 2,795,061
Nomura Securities Co. Ltd. 1,176,000 21,548,381
Omron Corp. 272,000 6,369,899
Onward Kashiyama & Co. Ltd. 514,000 7,101,465
Orix Corp. 441,000 15,556,318
Pioneer Electronic Corp. 123,000 1,892,215
Rohm Co. Ltd. 207,000 12,595,855
Sankyo Co. Ltd. 371,000 8,179,413
Seino Transpotation Co. Ltd. 248,000 3,839,498
Sony Corp. 259,800 11,710,156
Sumitomo Marine and Fire Insurance
Co. Ltd. 655,000 4,685,219
Sumitomo Realty & Development
Co. Ltd. 1,127,000 7,420,940
Sumitomo Trust & Banking Co. Ltd. 568,000 6,567,439
Suzuki Motor Corp. 143,000 1,443,241
TDK Corp. 144,000 7,435,990
Tadano Ltd. 29,000 233,580
Takashimaya Co. Ltd. 570,000 7,931,018
Takeda Chemical Industries Ltd. 603,000 8,508,353
Tokio Marine & Fire Insurance
Co. Ltd. (The) 1,849,000 19,023,566
Toshiba Corp. 2,749,000 19,959,914
Toyota Motor Corp. 707,000 13,162,510
Tsugami Corp. 336,000 1,695,556
Uny Co. Ltd. 184,000 3,173,191
Yamanouchi Pharmaceutical Co. Ltd. 367,000 8,199,108
420,930,207
KOREA (SOUTH) - 0.8%
Cho Hung Bank Co. Ltd. 96,362 1,271,981
Korea Electric Power Corp. 285,000 12,524,968
Korea First Securities Co. Ltd. 16,203 249,880
Kyungki Bank 171,523 1,921,129
Seoul Securities Co. 124,496 1,887,412
17,855,370
MALAYSIA - 0.9%
Kuala Lumpur Industries Holdings BHD (a) 570,000 619,065
Magnum Corp. BHD 960,000 1,631,953
Malayan Banking BHD 227,000 1,831,185
Resorts World BHD 769,000 3,752,327
Telekom Malaysia BHD 1,411,000 10,105,342
Tenega Nasional BHD 547,000 2,066,385
Time Engineering BHD 317,000 810,821
20,817,078
MEXICO - 1.2%
BANACCI SA de CV:
Class B 890,700 1,535,907
Class L 44,535 73,648
Cemex SA, Series B 2,180,900 6,781,597
Cifra SA Class C 3,117,100 3,198,607
Consorcio G Grupo Dina SA ADR 117,200 307,650
Empresas Ica Sociedad Controladora
SA de CV sponsored ADR representing
Ord. (part. certs.) 377,600 3,587,200
Grupo Carso SA de CV Class A-1 (a) 420,600 2,217,439
Grupo Dina sponsored ADR, Series L 42,244 68,647
Grupo Financiero Bancomer SA de CV (a):
Class B 10,119,800 2,631,863
Series L 435,177 101,490
sponsored ADR, Series C (b) 189,800 972,725
Telefonos de Mexico SA sponsored ADR
representing shares Ord. Class L 219,600 6,039,000
27,515,773
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
NETHERLANDS - 6.5%
ABN-AMRO Holdings NV 79,000 $ 3,318,571
AKZO NV Ord. 182,600 20,790,230
IHC Caland NV 147,300 4,190,439
International Nederlanden Groep NV 390,578 23,286,694
KLM Royal Dutch Airlines Ord. 491,604 16,227,947
Koninklijke PPT Nederland 364,300 12,810,397
Oce Van der Grinten NV 288,500 16,542,641
Pirelli Tyre Holdings NV Ord. (a) 957,200 8,187,417
Royal Dutch Petroleum Co. Ord. 52,600 6,528,759
Unilever NV Ord. 217,200 28,445,315
Vendex International NV (b) 144,700 4,171,482
144,499,892
NORWAY - 1.9%
Bergesen Group:
Class A 37,600 779,118
Class B 503,000 10,341,981
Christiania Bank Free shares Ord. 2,491,700 5,803,494
Den Norske Bank Class A Free shares 1,830,400 5,027,683
Norsk Hydro AS 158,600 6,318,015
Orkla AS Class B (non-vtg.) 106,400 5,178,572
Saga Petroleum AS Class B 420,900 5,070,677
Unitor AS 286,300 3,541,097
42,060,637
PAKISTAN - 0.0%
Hub Power Co. Ltd. GDR (a) 64,300 1,060,950
PHILIPPINES - 0.2%
Philippine Long Distance Telephone Co.
sponsored ADR 91,900 5,157,888
SINGAPORE - 0.3%
Kim Engineering Holdings Ltd. 4,273,000 3,686,747
Overseas Union Bank Ltd. (For. Reg.) 456,000 2,837,907
Van Der Horst Ltd. 217,000 1,112,624
7,637,278
SPAIN - 4.2%
Banco Bilbao Vizcaya SA Ord. (Reg.) 596,300 18,231,139
Banco Intercontinental Espanol 100,750 8,737,172
Corporacion Mapfrecia International de
Reaseguros SA (Reg.) 334,450 17,133,708
EL Aguila SA (a) 101,321 730,009
Repsol SA Ord. 248,700 7,430,422
Tabacalera SA, Series A 389,700 13,096,475
Telefonica de Espana SA Ord. 1,504,500 18,991,229
Union Electrica Fenosa SA 2,107,000 9,809,639
94,159,793
SWEDEN - 3.3%
Investor AB Class B Free shares 560,200 19,985,112
Mo Och Domsjoe AB Class B 56,200 2,865,401
SKF AB Ord. 349,300 6,638,981
Skandia Foersaekrings AB 114,600 2,912,841
Skandinaviska Enskilda Banken
Class A Free shares 1,603,200 10,834,230
Svenska Cellulosa Aktiebolaget SCA
Class B Ord. 323,500 5,538,632
Volvo AB Class B 1,136,900 25,638,687
74,413,884
SWITZERLAND - 8.7%
Adia SA (Bearer) (a) 78,100 12,919,314
Alusuisse-Lonza Holding AG (Reg.) 22,611 17,209,428
Baloise Holding (Reg.) 7,129 14,615,548

SHARES VALUE (NOTE 1)
C. S. Holdings (Reg.) 437,655 $ 44,670,462
CIBA-GEIGY AG (Reg.) 28,665 24,793,396
Fischer (Georg) AG (Reg.) 23,300 6,150,462
Holderbank Financiere Glarus AG:
(Bearer) 5,325 4,273,119
(warrants)(a) 26,625 32,798
Nestle SA (Reg.) 20,175 21,124,725
Roche Holdings Ltd. (part. certs.) 2,900 21,051,474
Surveillance, Societe Generale (Bearer) 1,690 3,189,661
Swiss Bank Corp. (Bearer) 59,400 24,355,829
194,386,216
THAILAND - 1.3%
Bank of Asia PCL (For. Reg.) 658,130 1,556,079
Krung Thai Bank (For. Reg.) 2,824,360 11,223,366
Phatra Thanakit PCL (For. Reg.) 56,500 442,301
SCF Finance and Securities Co. Ltd.
(rights) (a) 81,215 -
Siam City Bank PCL (For. Reg.) 10,964,100 13,942,031
Siam City Credit Finance and Securities
Co. Ltd. (rights) (a) 64,494 -
Telecomasia Corp. PCL (For. Reg.) (a) 697,300 2,064,329
29,228,106
TURKEY - 0.1%
Aksigorta 1,122,250 150,875
Aksigorta (b) 2,300,000 309,211
Tofas Turk Otomobil Fabrikasi AS 16,406,800 2,109,823
Tofas Turk Otomobil Fabrikasi AS
ADR (b) 603,600 362,160
2,932,069
UNITED KINGDOM - 14.2%
Allied Lyons PLC (a) 996,800 8,050,511
Argyll Group PLC Ord. 966,000 4,908,543
BTR PLC Ord. 978,600 5,196,836
Barclays PLC Ord. 1,745,700 20,486,160
Barratt Developments PLC 506,900 1,554,242
Bass PLC Ord. 966,400 10,126,630
Berkeley Group PLC 430,400 2,758,402
Booker PLC 595,400 3,557,092
Boots Co. PLC (The) 518,100 4,581,505
British Airways PLC Ord. 851,300 6,121,932
British Land Ord. 513,100 2,943,765
Burmah Oil 361,252 5,623,944
Cadbury-Schweppes PLC Ord. 1,823,800 15,061,146
Christies International PLC 238,700 777,167
De la Rue PLC 738,600 10,523,726
Dixons Group PLC 1,729,717 10,470,522
English China Clay PLC 94 507
Forte PLC 3,051,200 12,152,502
Glaxo Holdings PLC 667,700 9,001,708
Grand Metropolitan PLC 1,922,500 13,308,679
Great Universal Stores PLC Ord.
Class A 658,400 5,936,630
Guinness PLC Ord. 2,039,900 16,345,994
Hanson Trust PLC Ord. 1,101,300 3,372,422
Lloyds Abbey Life PLC 1,037,900 7,504,834
London International Group PLC 4,292,200 8,886,807
Mirror Group Newspaper PLC 2,380,300 6,263,837
National Westminster Bank PLC Ord. 1,576,880 15,738,615
North West Water Group PLC Ord. 721,600 6,780,206
Prudential Corp. PLC 982,800 6,143,362
Reuters Holdings PLC Ord. 716,900 6,662,395
Rolls Royce PLC Ord. 1,600,399 3,895,323
Royal Insurance Holdings PLC 1,882,600 11,619,130
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
UNITED KINGDOM - CONTINUED
Scottish Hydro-Electric PLC Ord. 1,368,900 $ 7,356,058
Scottish Power PLC ADR 1,733,200 9,560,236
Shell Transport & Trading PLC 759,800 8,886,393
South West Water PLC Ord. 680,100 5,385,239
Telegraph (The) PLC 670,700 4,324,969
Tesco PLC Ord. 1,458,795 6,916,876
Unigate Ltd. Ord. 524,400 3,472,731
Vodafone Group PLC 3,307,150 13,668,476
Whitbread Co. PLC Class A 956,200 9,362,343
Wickes PLC 1,310,200 2,578,110
317,866,505
TOTAL COMMON STOCKS
(Cost $1,696,922,610) 1,926,563,106
NONCONVERTIBLE PREFERRED STOCKS - 2.1%
AUSTRIA - 0.4%
Creditanstalt Bankverein 180,300 8,984,536
GERMANY - 0.3%
Porsche AG Ord. (a) 12,550 5,835,552
ITALY - 1.4%
Banco Ambro Veneto 2,320,900 2,880,615
Fiat Spa 2,000,300 3,949,691
SAI (Sta Assicuratrice Industriale) Spa 1,190,200 5,040,541
Stet (Societa Finanziaria Telefonica) Spa 8,823,000 19,278,920
31,149,767
KOREA (SOUTH) - 0.0%
Korea First Securities Co. Ltd. 66,140 713,135
TOTAL NONCONVERTIBLE PREFERRED STOCKS
(Cost $41,938,182) 46,682,990
CLOSED-END INVESTMENT COMPANIES - 0.1%
THAILAND - 0.1%
Ruang Khao Unit Trust (For. Reg.) 2,633,900 1,517,646
Ruam Pattana Fund II (For. Reg.) 2,683,000 1,679,207
TOTAL CLOSED-END INVESTMENT COMPANIES
(Cost $2,661,231) 3,196,853
GOVERNMENT OBLIGATIONS (D) - 4.4%
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (C)
ARGENTINA - 0.5%
Argentina Republic BOCON
5 5/8%, 4/1/01 (c) B1 $ 15,898,766 10,524,758
BRAZIL - 0.2%
Brazil Federative Republic IDU
euro 6.6875%, 1/1/01 (c) B1 6,365,000 5,442,075
UNITED STATES OF AMERICA - 3.7%
U.S. Treasury Bill, yield at date of
purchase 5.41%, 11/30/95 Aaa 83,000,000 82,671,320
TOTAL GOVERNMENT OBLIGATIONS
(Cost $99,278,045) 98,638,153
REPURCHASE AGREEMENTS - 7.4%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.88%, dated
10/31/95 due 11/1/95 $ 166,514,193 $ 166,487,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $2,007,287,068) $ 2,241,568,102
LEGEND
1. Non-income producing
2. 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 $15,053,240 or 0.7% of net
assets.
3. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
4. 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
Purchases and sales of securities, other than short-term securities,
aggregated $994,834,919 and $993,417,832, respectively.
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 $499,307 for the period (see Note 4 of Notes to Financial
Statements).
INCOME TAX INFORMATION
At October 31, 1995, the aggregate cost of investment securities for income
tax purposes was $2,007,903,443. Net unrealized appreciation aggregated
$233,664,659, of which $338,433,546 related to appreciated investment
securities and $104,768,887 related to depreciated investment securities.
The fund hereby designates $12,234,000 as a capital gain dividend for the
purpose of the dividend paid deduction.
For the period, interest and dividends from foreign countries were
$56,721,829 or $0.71 per share. Taxes accrued or paid to foreign countries
were $6,455,599 or $0.08 per share.
MARKET SECTOR DIVERSIFICATION (UNAUDITED)
As a Percentage of Total Value of Investment in Securities
Aerospace & Defense 0.2%
Basic Industries 5.7
Conglomerates 0.2
Construction & Real Estate 3.8
Durables 7.3
Energy 3.1
Finance 24.0
Government Obligations 4.4
Health 3.6
Holding Companies 0.6
Industrial Machinery & Equipment 3.3
Media & Leisure 2.7
Nondurables 8.4
Precious Metals 0.2
Repurchase Agreements 7.4
Retail & Wholesale 5.6
Services 2.2
Technology 6.0
Transportation 2.5
Utilities 8.8
100.0%
OVERSEAS
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
OCTOBER 31, 1995

ASSETS

Investment in securities, at value (including repurchase agreements of $166,487,000) (cost $2,007,287,068) - $ 2,241,568,102
See accompanying schedule

Cash 175,797

Receivable for investments sold 45,249,794

Receivable for fund shares sold 4,632,711

Dividends receivable 7,029,676

Interest receivable 217,337

TOTAL ASSETS 2,298,873,417

LIABILITIES

Payable for investments purchased $ 11,965,211

Payable for fund shares redeemed 7,756,207

Accrued management fee 1,493,242

Other payables and accrued expenses 1,352,449

TOTAL LIABILITIES 22,567,109

NET ASSETS $ 2,276,306,308

Net Assets consist of:

Paid in capital $ 1,990,440,434

Undistributed net investment income 17,366,722

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions 34,224,606

Net unrealized appreciation (depreciation) on investments 234,274,546
and assets and liabilities in
foreign currencies

NET ASSETS, for 79,663,980 shares outstanding $ 2,276,306,308

NET ASSET VALUE, offering price $28.57
and redemption price per share ($2,276,306,308 (divided by) 79,663,980 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED OCTOBER 31, 1995

INVESTMENT INCOME $ 53,559,320
Dividends

Interest 17,219,942

70,779,262

Less foreign taxes withheld (6,455,599
)

TOTAL INCOME 64,323,663

EXPENSES

Management fee $ 17,348,793
Basic fee

Performance adjustment (1,750,190
)

Transfer agent fees 6,065,956

Accounting fees and expenses 750,251

Non-interested trustees' compensation 27,694

Custodian fees and expenses 1,151,536

Registration fees 52,035

Audit 91,030

Legal 122,569

Miscellaneous 17,624

TOTAL EXPENSES 23,877,298

NET INVESTMENT INCOME 40,446,365

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

Investment securities 37,662,091

Foreign currency transactions (17,393,337 20,268,754
)

Change in net unrealized appreciation (depreciation) on:

Investment securities (66,278,800
)

Assets and liabilities in foreign 5,611,623 (60,667,177
currencies )

NET GAIN (LOSS) (40,398,423
)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 47,942

OTHER INFORMATION $750,000
Accounting fees paid to FSC

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1995 1994

Operations $ 40,446,365 $ 16,979,988

Net investment income

Net realized gain (loss) 20,268,754 86,756,748

Change in net unrealized appreciation (depreciation) (60,667,177) 43,064,867

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 47,942 146,801,603

Distributions to shareholders (1,572,061) (8,339,198)

From net investment income

In excess of net investment income - (9,043,942)

From net realized gain (35,371,378) (6,172,422)

TOTAL DISTRIBUTIONS (36,943,439) (23,555,562)

Share transactions 1,320,123,274 1,731,601,947

Net proceeds from sales of shares

Reinvestment of distributions 36,074,820 22,888,570

Cost of shares redeemed (1,326,207,752) (1,085,191,412)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS 29,990,342 669,299,105

TOTAL INCREASE (DECREASE) IN NET ASSETS (6,905,155) 792,545,146

NET ASSETS

Beginning of period 2,283,211,463 1,490,666,317

End of period (including under (over) distribution net investment income of $17,366,722 and $ 2,276,306,308 $ 2,283,211,463

$(5,581,700), respectively)

OTHER INFORMATION

Sold 47,605,509 60,924,762

Issued in reinvestment of distributions 1,345,573 855,349

Redeemed (47,560,838) (38,395,055)

Net increase (decrease) 1,390,244 23,385,056

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED OCTOBER 31,

SELECTED PER-SHARE DATA 1995 1994 B 1993 1992 E 1991

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 29.17 $ 27.16 $ 21.96 $ 26.92 $ 27.47

Income from Investment Operations

Net investment income .31 .18 .27 .46 .54 D

Net realized and unrealized gain (loss) (.44) 2.26 7.40 (3.82) .45

Total from investment operations (.13) 2.44 7.67 (3.36) .99

Less Distributions (.02) F (.15) (.37) (.44) (.46)
From net investment income

In excess of net investment income - (.17) - - -

From net realized gain (.45) F (.11) (2.10) C (1.16) (1.08) C

Total distributions (.47) (.43) (2.47) (1.60) (1.54)

Net asset value, end of period $ 28.57 $ 29.17 $ 27.16 $ 21.96 $ 26.92

TOTAL RETURN A (.34)% 9.13% 39.01% (13.05)% 4.12%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 2,276,306 $ 2,283,211 $ 1,490,666 $ 801,845 $ 969,436

Ratio of expenses to average net assets 1.05% 1.24% 1.27% 1.52% 1.53%

Ratio of net investment income to average net assets 1.78% .90% 1.00% 1.78% 2.19%

Portfolio turnover rate 49% 49% 64% 122% 132%

A TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE.
B EFFECTIVE NOVEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION
93-2, "DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT
PRESENTATION OF
INCOME, CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY
INVESTMENT COMPANIES." AS A RESULT, NET INVESTMENT INCOME PER
SHARE MAY REFLECT CERTAIN
RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
C INCLUDES AMOUNTS DISTRIBUTED FROM NET REALIZED GAINS ON
FOREIGN CURRENCY RELATED TRANSACTIONS TAXABLE AS ORDINARY INCOME.
D INCLUDES $.08 PER SHARE FROM RECOVERY OF FOREIGN TAXES
PREVIOUSLY WITHHELD ON DIVIDEND AND INTEREST PAYMENT.
E AS OF NOVEMBER 1, 1991, THE FUND DISCONTINUED THE USE OF
EQUALIZATION ACCOUNTING.
F THE AMOUNTS SHOWN REFLECT CERTAIN RECLASSIFICATIONS RELATED TO
BOOK TO TAX DIFFERENCES (SEE NOTE 1 OF NOTES TO FINANCIAL STATEMENTS).

</TABLE>

WORLDWIDE
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
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (income) and capital gains (the profits the
fund earns when it sells securities that have grown in value). The 3% sales
charge was eliminated July 1, 1995.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED PAST 1 PAST 5 LIFE OF
OCTOBER 31 1995 YEAR YEARS FUND

WORLDWIDE 0.95% 68.23% 50.56%

WORLDWIDE
(INCL. 3% SALES CHARGE) -2.08% 63.18% 46.05%

Morgan Stanley World Index 9.48% 64.20% 46.17%

Average Global Fund 5.18% 69.63% n/a

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 May 30, 1990. For example, if you invested $1,000 in a fund that
had a 5% return over the past year, the value of your investment would be
$1,050. You can compare the fund's returns to the performance of the Morgan
Stanley World index, a broad measure of the performance of stocks across
the world, weighted by each country's market capitalization (or the total
value of its outstanding shares). To measure how the fund's performance
stacked up against its peers, you can compare it to the average global
fund, which reflects the performance of 120 funds with similar objectives
tracked by Lipper Analytical Services over the past 12 months. These
benchmarks include reinvested dividends and capital gains, if any, and
exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED PAST 1 PAST 5 LIFE OF
OCTOBER 31 1995 YEAR YEAR FUND

WORLDWIDE 0.95% 10.96% 7.83%

WORLDWIDE
(INCL. 3% SALES CHARGE) -2.08% 10.29% 7.23%

Morgan Stanley World Index 9.48% 10.43% 7.25%

Average Global Fund 5.18% 10.96% n/a

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
Worldwide Fund (3World Index
05/30/90 9700.00 10000.00
05/31/90 9729.10 10038.61
06/30/90 9981.30 9964.14
07/31/90 10252.90 10051.93
08/31/90 9098.60 9108.00
09/30/90 8196.50 8144.51
10/31/90 8681.50 8901.68
11/30/90 8681.50 8752.34
12/31/90 8631.28 8932.45
01/31/91 8875.93 9255.96
02/28/91 9365.23 10109.62
03/31/91 9042.29 9808.57
04/30/91 9130.37 9882.21
05/31/91 9198.87 10103.10
06/30/91 8543.21 9476.34
07/31/91 9071.65 9920.84
08/31/91 9208.66 9886.25
09/30/91 9365.23 10142.44
10/31/91 9404.38 10303.82
11/30/91 8905.29 9851.69
12/31/91 9311.09 10565.69
01/31/92 9410.04 10366.97
02/29/92 9696.99 10184.99
03/31/92 9469.41 9702.08
04/30/92 9884.99 9834.16
05/31/92 10300.58 10222.20
06/30/92 9944.36 9876.60
07/31/92 9845.41 9898.58
08/31/92 9706.88 10136.03
09/30/92 9706.88 10039.86
10/31/92 9528.77 9764.70
11/30/92 9677.20 9936.32
12/31/92 9889.02 10013.50
01/31/93 10214.25 10043.98
02/28/93 10458.17 10278.91
03/31/93 11057.81 10871.83
04/30/93 11332.23 11372.70
05/31/93 11687.95 11631.78
06/30/93 11565.99 11531.21
07/31/93 11820.07 11765.78
08/31/93 12562.00 12302.20
09/30/93 12429.88 12071.96
10/31/93 12968.54 12401.72
11/30/93 12734.78 11697.27
12/31/93 13503.03 12266.78
01/31/94 14466.79 13072.98
02/28/94 14249.16 12900.91
03/31/94 13710.29 12341.84
04/30/94 14186.98 12720.47
05/31/94 14166.26 12750.32
06/30/94 13876.09 12711.99
07/31/94 14300.98 12950.75
08/31/94 14539.33 13337.82
09/30/94 14259.53 12984.42
10/31/94 14466.79 13350.78
11/30/94 13969.36 12768.79
12/31/94 13902.83 12889.44
01/31/95 13826.08 12692.88
02/28/95 13990.55 12874.84
03/31/95 14067.30 13492.27
04/30/95 14418.16 13959.36
05/31/95 14560.70 14075.61
06/30/95 14758.06 14068.12
07/31/95 15361.10 14768.84
08/31/95 14977.34 14436.63
09/30/95 15119.88 14854.00
10/31/95 14604.55 14616.93

Let's say you invested $10,000 in Fidelity Worldwide Fund on May 30, 1990,
when the fund started, and paid a 3% sales charge. By October 31, 1995, the
value of your investment would have grown to $14,605 - a 46.05% increase on
your initial investment. That compares to $10,000 invested in the Morgan
Stanley World index, which would have grown to $14,617 over the same period
- - a 46.17% increase.

An interview with Penny Dobkin, Portfolio Manager of Fidelity Worldwide
Fund
Q. PENNY, HOW HAS THE FUND PERFORMED OVER THE PAST YEAR?
A. For the 12 months ended October 31, 1995, the fund had a total return of
0.95%. The average global fund tracked by Lipper Analytical Services
returned 5.18%, while the Morgan Stanley World Index had a total return of
9.48%, both for the same 12-month period.
Q. WHY DIDN'T THE FUND PERFORM AS WELL AS ITS COMPETITORS OR THE INDEX?
A. First, the fund would have performed much better with more investments
in the U.S. However, I didn't believe that the U.S. market was going to
outperform the rest of the world until the second half of 1995. Second,
although the fund had significant investments in Finland and that market
performed well, the Finnish market's performance was driven mainly by one
stock, Nokia, which I didn't invest in. I didn't invest in this stock
because I underestimated the growth in Nokia's cellular business. Instead,
the fund held paper and forest products stocks such as Enso-Gutzeit and
Repola. Although earnings for these companies came in above expectations
for this year, investors felt the peak of the paper cycle will be in 1996,
not 1997, so they were selling the stocks earlier this year. Another
Finnish stock that disappointed was Kone, an elevator company that faced
pricing competition in its business.
Q. WHAT HAS THE INTERNATIONAL STOCK MARKET ENVIRONMENT BEEN LIKE OVER THE
PAST YEAR?
A. It's been very unusual. Historically, when the U.S. market performs
well, there can be a corresponding run up in many markets outside of the
U.S. as well. That didn't happen this year, and I haven't seen a lack of
correlation like this in more than 10 years. There was no corresponding
broad-based movement in foreign markets like there was in the U.S. You
could characterize the markets as very narrow: strong performance in
certain blue-chip, non-cyclical European stocks as well as currency gains
helped some European indexes show positive results, whereas Latin American
and Southeast Asian stock markets declined. Because of the lack of
broad-based strength, I kept a fair amount of the fund's assets - about 20%
at the end of the period - in cash and short-term investments.
Q. LOOKING AT EUROPE, WHICH SECTORS OF THE MARKET WERE IN FAVOR OVER THE
PERIOD?
A. Large capitalization stocks that were defensive in nature - those that
sustain demand for their products regardless of the economic backdrop, such
as insurance companies and pharmaceutical manufacturers - performed the
best. Also, growth stocks such as Nokia and other companies involved with
cellular or telecommunications development did well. Worldwide Fund has
been geared toward economically sensitive small- or mid-cap companies,
which underperformed. Specifically, in France, the property stocks
underperformed because the anticipated economic recovery didn't occur. As a
result, there hasn't been a reduction in vacancies or a rise in property
values. In fact, values have declined for the fourth consecutive year.
Q. WHAT INVESTMENTS WERE POSITIVE CONTRIBUTORS TO PERFORMANCE?
A. A couple of initial public offerings turned in excellent performance:
SGL Carbon, which makes electrodes for the steel industry; and Bulgari, the
jewelry retailer. In addition, Tab Corp., an Australian gaming company;
Volker Stevin, a Dutch construction company; and Securities One, a
securities broker in Thailand, also were positive contributors. By sector,
Spanish banks - where the fund has had more invested than the index for a
couple of years - worked well, because loan growth has turned positive and
commission income related to that loan growth has accelerated. The fund
also benefited from being underweighted in Japan relative to the index. At
the beginning of the period, I was skeptical regarding the economic
forecasts for this year. Sure enough, economic growth fell well short of
expectations. My avoidance of Southeast Asian emerging markets such as
Malaysia, Singapore and Indonesia helped, because they had negative
returns.
Q. HOW HAVE YOU CHANGED WEIGHTINGS, INVESTMENTS OR ALLOCATIONS WITHIN THE
FUND?
A. In the U.S., I sold the fund's investments in Exxon, because I was
concerned about oil prices. I also reduced holdings of Armco Steel, due to
concern about steel prices. Conversely, I've added to the fund's
investments in the retailing sector, including Federated Department Stores
and Dillard Department Stores. In Japan, I've invested in securities
brokers such as Nomura Securities, in hopes of taking advantage of
increased trading volumes as the market strengthens there. I've increased
holdings in Japanese department store retailers and added specialty
retailers such as the do-it-yourself stores Homac and Arc Land Sakamoto.
I've been selling the fund's investments in Japanese regional banks because
their interest margins have peaked, and in Japanese auto parts stocks
because they're getting more pricing pressure from the car companies.
Q. YOU MENTIONED THAT U.S. RETAILERS ARE A NEW FOCUS OF YOURS. THIS IS A
SECTOR THAT HAS REALLY STRUGGLED. WHAT'S YOUR STRATEGY THERE?
A. I'm buying these stocks precisely because they've been beaten down. If
the U.S. economy revives, I believe it will be helped by consumer spending.
If I can find companies that are increasing their square footage only
modestly and are cutting costs, there will be an opportunity to make money.
I'm not suggesting every retailer will succeed in this way, only a select
few. I like the fact that the stocks have seen sharp falls; it adds to
investor discouragement and makes the stocks cheaper. In general, my
investment horizon is one to two years, so if it takes some time for these
stocks to rebound and perform strongly, I'm willing to wait.
Q. WHAT'S YOUR OUTLOOK FOR THE NEXT SIX MONTHS?
A. I believe the U.S. economy has to show some signs of strengthening
before Europe starts to strengthen as well. Even though the U.S. and
overseas stock markets haven't demonstrated their usual correlation, their
economies have. As always, it's difficult to make any moves predicated on
currency movements. Small-capitalization stocks are very cheap in Europe;
any economic pick-up will significantly help their earnings and attract
investors to this sector. This year, some of these companies performed well
and some did not. Even those that showed strong earnings did not attract
investor interest. This is where the money should flow when Europe starts
to recover, and that's where I am positioning the fund. I don't know
exactly when this will happen, but of course I hope it does over the next
six months. I expect Japan to come back slowly. There, I'll be focusing on
domestic stocks with enough potential earnings growth to withstand declines
in the value of the yen. I'll also be trying to reduce the fund's cash and
short-term investment position, but it's hard to say where those assets
will go, because I still do not see any broad-based trends. I expect Mexico
and Hong Kong and China will become more attractive, but those investments
probably will not make up a significant part of the portfolio.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER,
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.

FUND FACTS
GOAL: to increase the value of the fund's
shares by investing mainly in common stocks
from around the world
START DATE: May 30, 1990
SIZE: as of October 31, 1995, more than
$659 million
MANAGER: Penelope Dobkin, since 1990;
manager Fidelity Europe Fund, 1986-1990;
Fidelity United Kingdom Fund, 1987-1989;
Fidelity Select Financial Services Portfolio,
1983-1986; joined Fidelity in 1980
(checkmark)
PENNY DOBKIN ON TRENDS IN
INTERNATIONAL INVESTING:
"There's very little money flowing from one region to
another. Most of it is staying in the U.S. The stocks that
have worked this year have been those with global
businesses, such as pharmaceuticals,
telecommunications and property/casualty insurance.
Most everything outside of the U.S. that is focused
domestically in its business has not been appreciated by
U.S. investors.
"What would change this trend? Something critical such
as a currency devaluation, in France, for instance, which
is possible at this time. The devaluation would help
exports, and overseas investors then would find French
property more attractive. At the same time, the French
have worked very hard to develop a strong currency
policy, and may not be willing to give it up. Either
strong economic resolutions or public sector spending
will help Mexico. Investors probably are looking for
business owners to commit more tangible assets before
financial investments follow.
"Large parts of Southeast Asia are starting to cause
concern. Inflation is rising and foreign exchange
reserves are dwindling in places such as Malaysia,
Indonesia and Thailand. Because of these problems in
Latin America and Southeast Asia, I believe Europe will
be the next region to attract interest from U.S. investors.
However, there has been no evidence of that thus far."
(solid bullet) Philip Morris, one of the fund's largest U.S.
investments, posted solid performance on the basis of
strong international sales and a positive pricing
environment.
(solid bullet) Year to date, blue chip stocks in Hong Kong have
performed relatively well. The manager generally
focuses on those stocks just below the blue chip level.
Toward the end of the period, she has been buying
property investment companies that hold rather than
develop property.
(solid bullet) The fund's Canadian investments - 4% of the
fund as of the end of the period - are mainly stocks
with nickel or other non-ferrous metal mining
businesses, such as Falconbridge, Inco and Alcan
Aluminium. The separatist referendum in Quebec had
little effect on these companies, largely because they
are national companies and not located in Quebec.
WORLDWIDE
INVESTMENT CHANGES

GEOGRAPHIC DIVERSIFICATION
AS OF OCTOBER 31, 1995

France 4.0%
Canada 4.4%
Row: 1, Col: 1, Value: 35.2
Row: 1, Col: 2, Value: 3.7
Row: 1, Col: 3, Value: 3.5
Row: 1, Col: 4, Value: 12.3
Row: 1, Col: 5, Value: 10.6
Row: 1, Col: 6, Value: 13.7
Row: 1, Col: 7, Value: 6.2
Row: 1, Col: 8, Value: 6.4
Row: 1, Col: 9, Value: 4.4
Row: 1, Col: 10, Value: 4.0
Finland 6.4%
United States 35.2%
Germany 6.2%
Japan 13.7%
Spain 3.7%
Switzerland 3.5%
Netherlands 10.6
%
Other 12.3%
AS OF APRIL 30, 1995
Other 8.1%
Finland 4.6%
Row: 1, Col: 1, Value: 8.1
Row: 1, Col: 2, Value: 9.9
Row: 1, Col: 3, Value: 10.7
Row: 1, Col: 4, Value: 5.7
Row: 1, Col: 5, Value: 4.1
Row: 1, Col: 6, Value: 50.0
Row: 1, Col: 7, Value: 6.9
Row: 1, Col: 8, Value: 4.6
Germany 6.9%
Netherlands 9.9%
Japan 10.7%
Switzerland 5.7%
France 4.1%
United States 50.0%
ASSET ALLOCATION
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Stocks 80.3 64.1

Bonds 0.3 0.3

Short-term investments 19.4 35.6

TOP TEN STOCKS
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Deutsche Bank AG 1.8 0.9
(Germany, Banks)

Volker Stevin NV 1.6 1.4
(Netherlands, Construction)

Philip Morris Companies, Inc. 1.3 0.3
(United States, Tobacco)

AKZO NV Ord. 1.2 1.1
(Netherlands, Chemicals & Plastics)

Nomura Securities Co. Ltd. 1.2 0.8
(Japan, Securities Industry)

Allstate Corp. 1.2 0.2
(United States, Insurance)

Iro AB 1.1 0.0
(Sweden, Consumer Durables)

Repola OY 1.1 0.8
(Finland, Paper & Forest Products)

Banco de Santander SA Ord. (Reg.) 1.1 0.8
(Spain, Banks)

Enso-Gutzeit OY Class R Free shares 1.1 0.8
(Finland, Paper & Forest Products)

TOP TEN MARKET SECTORS
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Finance 16.1 14.1

Basic Industries 12.2 10.9

Retail & Wholesale 10.2 8.0

Durables 9.6 6.3

Construction & Real Estate 9.1 6.3

Industrial Machinery & Equipment 5.5 4.4

Nondurables 4.4 1.5

Utilities 3.1 0.9

Technology 2.6 1.9

Energy 2.5 3.3

WORLDWIDE FUND
INVESTMENTS OCTOBER 31, 1995

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 76.1%
SHARES VALUE (NOTE 1)
AUSTRALIA - 0.7%
QNI Ltd. 278,400 $ 533,507
Southcorp Holdings Ltd. 1,859,900 4,002,642
4,536,149
BELGIUM - 0.5%
D'ieteren Trading SA 44,000 3,495,682
BRAZIL - 0.6%
Coteminas PN 6,100,000 1,903,276
Refrigeracao Parana SA 730,000,000 1,723,457
3,626,733
CANADA - 4.4%
Alcan Aluminium Ltd. 70,000 2,219,226
Brascan Ltd. Class A 89,700 1,401,041
Canadian Pacific Ltd. Ord. 338,500 5,381,508
Falconbridge Ltd. 220,000 4,847,527
Falconbridge Ltd. (New) 400,000 3,756,043
Imasco Ltd. 300,000 5,355,151
Inco Ltd. 115,000 3,955,932
Methanex Corp. (a) 265,600 1,777,910
28,694,338
CHINA (PEOPLES REP) - 0.5%
Jilin Chemical Industrial Co. Ltd.
Class H (a) 5,750,000 1,204,843
Maanshan Iron & Steel Co. Ltd.
Class H 12,000,000 2,188,506
3,393,349
DENMARK - 0.6%
Tele Danmark AS Class B 37,000 1,931,142
Unidanmark AS Class A 46,000 2,114,458
4,045,600
FINLAND - 6.4%
Enso-Gutzeit OY Class R Free shares 880,000 6,905,539
Huhtamaki Ord. 230,000 6,829,188
Kansallis-Osake-Pankki 4,032,000 3,230,503
Kemira OY 634,030 5,333,949
Kemira OY sponsored ADR (b) 168,600 2,781,900
Kone Corp. Class B Ord. 67,050 6,114,774
Repola OY 362,600 7,023,770
Valmet OY Class A 135,000 3,753,932
41,973,555
FRANCE - 4.0%
Bail Investissement SA 31,300 5,160,573
Eramet SA 40,000 2,703,533
Klepierre SA 48,350 5,446,493
Michelin SA Cie Generale des
Etablissements Class B 105,000 4,247,312
Renault SA Ord. 105,000 3,290,323
Renault SA Ord. (a)(b) 10,000 313,364
Unibail 57,000 5,259,293
26,420,891
GERMANY - 3.9%
Bremer Vulkan AG (a) 118,000 3,669,045
Deutsche Bank AG 265,000 11,977,816
Karstadt AG 14,300 6,233,060
SGL Carbon AG (a)(b) 9,500 622,475
Sixt AG Units 9,770 759,461
Tarkett AG (a) 20,000 477,052
Tarkett AG (a)(b) 63,000 1,502,715
25,241,624

SHARES VALUE (NOTE 1)
HONG KONG - 1.8%
Amoy Properties Ltd. 3,206,000 $ 3,089,351
Great Eagle Holdings Ltd. 828,000 2,270,459
Hang Lung Development Corp. 1,226,000 2,037,704
Jardine Matheson Holdings Ltd. Ord. 407,800 2,487,580
Peregrine Investments Holdings Ltd. 1,544,000 1,967,121
11,852,215
INDIA - 0.2%
Indian Aluminum Ltd. GDR (b) 110,550 622,397
SCICI Ltd. 235,500 246,173
SCICI Ltd. (a):
(New) 117,750 123,775
(rights) 117,750 -
992,345
ITALY - 1.4%
Bulgari Spa (a) 687,003 5,948,056
De Rigo Spa sponsored ADR 1,400 28,875
Mediobanca Spa 340,000 2,269,160
Telecom Italia Ord. 706,200 1,083,765
9,329,856
JAPAN - 13.7%
Akita Bank Ltd. 344,000 2,275,244
Alps Electric Co. Ltd. 180,000 1,851,943
Aomori Bank Ltd. 320,000 1,740,238
Arc Land Sakamoto Co. Ltd. 100,000 1,293,420
Bank of the Ryukyus Ltd. 58,900 2,135,417
Bridgestone Corp. 50,000 695,703
Daiichi Corp. Ord. 152,000 3,142,619
Daito Trust Construction 173,000 1,525,648
Daiwa Securities Co. Ltd. 425,000 4,997,305
FCC Co. Ltd. 34,000 1,049,434
Fukushima Bank Ltd. 24,000 98,770
Hankyu Department Stores, Inc. 147,000 1,814,904
Hanshin Department Store Ltd. 516,000 3,615,110
Hitachi Ltd. 295,000 3,035,128
Homac Corp. 84,000 1,506,247
Iwate Bank 35,000 1,886,238
Izumi Co. Ord. 100,000 1,900,936
Kajima Corp. 280,000 2,589,976
Kanto Auto Works Co. Ltd., Yokosuka 132,000 776,052
Kokuyo Co. Ltd. 50,000 1,077,850
Matsuya Co. Ltd. 251,000 1,256,783
Michinoku Bank 370,000 3,081,672
Ministop Co. Ltd. 107,000 2,600,167
Mitsubishi Electric Co. Ord. 250,000 1,871,540
Mori Seiki Co. Ltd. Ord. 103,000 2,038,705
NEC Corp. 86,000 1,137,622
Namura Shipbuilding Co. Ltd. 176,000 982,999
Nikko Securities Co. Ltd. 425,000 3,972,858
Nikku Sangyo Co. Ltd. 96,000 1,034,736
Nomura Securities Co. Ltd. 421,000 7,714,174
Obayashi Corp. 339,000 2,527,843
Omron Corp. 50,000 1,170,937
Paris Miki, Inc. 80,000 2,539,807
Sekisui House Ltd. 360,000 4,162,461
Shimachu 91,000 2,407,525
Shimzu Bank Ltd. 25,000 1,680,466
Tachi-S Co. Ltd. 120,000 905,394
Tokyo Nissan Auto Sales Co. Ltd. 244,000 1,494,292
Toyoda Automatic Loom Works Ltd. 122,000 1,912,694
Yamaichi Securities Co. Ltd. 539,000 2,830,866
Yamanouchi Pharmaceutical Co. Ltd. 150,000 3,351,134
89,682,857
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
MEXICO - 1.2%
Cemex SA Class B sponsored ADR 500,000 $ 3,250,000
Empresas Ica Sociedad Controladora
SA de CV sponsored ADR
representing Ord. (part. certs.) 275,000 2,612,500
Grupo Financiero Bancomer SA de CV (a):
Series L 265,911 62,015
sponsored ADR, Series C (b) 359,000 1,839,875
7,764,390
NETHERLANDS - 10.2%
AKZO NV Ord. 69,400 7,901,654
Ahrend Groep NV Ord. (a) 40,000 1,414,180
BAM Groep NV 50,745 3,022,258
CVG (Crown Van Gelder) 38,000 3,683,710
De Boer Winkelbedrijven NV 87,000 4,244,440
Econosto NV 285,500 3,744,440
Geveke NV (d) 215,200 5,072,192
KBB NV Ord. 63,625 4,514,984
Koninklijke PPT Nederland 108,000 3,797,757
Koninklijke PPT Nederland (b) 74,400 2,616,233
Macintosh Confectie NV 204,900 5,971,868
Samas-Groep NV 93,613 4,092,566
Vendex International NV 160,000 4,612,558
Vendex International NV (b) 46,000 1,326,110
Volker Stevin NV 165,000 10,611,101
66,626,051
NORWAY - 0.9%
Den Norske Bank Class A Free shares 1,600,000 4,394,828
Dual Invest AS Class B (non-vtg.) (a) 221,700 1,282,017
Mosvold Shipping Ltd. 221,700 213,670
5,890,515
PANAMA - 0.2%
McDermott (J. Ray) SA 100,000 1,512,500
PORTUGAL - 0.7%
Portugal Telecom SA sponsored ADR (a) 229,000 4,293,750
SPAIN - 3.7%
Banco Bilbao Vizcaya SA Ord. (Reg.) 129,600 3,962,361
Banco de Santander SA Ord. (Reg.) 159,587 6,959,039
Banco de Valencia SA (Reg.) 442,363 5,964,648
Banco Pastor SA 50,000 2,438,525
Banco Popular Espanol 12,800 2,034,361
Prosegur Comp Securidad SA (Reg.) 125,000 3,063,524
24,422,458
SWEDEN - 1.5%
Iro AB (a)(b) 600,000 7,331,091
Munksjo AB 295,200 2,137,420
9,468,511
SWITZERLAND - 3.5%
C. S. Holdings (Reg.) 20,650 2,107,699
Globus Magazine (part. certs.) 3,650 2,376,595
Kuoni Reisen Holding AG Class B (Reg.) 900 1,433,348
Merkur Holdings AG Ord. (Reg.) 4,000 890,453
SIG AG (Reg.) 1,800 1,916,410
Swiss Bank Corp. (Reg.) 12,257 2,510,178
Swisslog Holding AG (Reg) 14,150 4,233,172
Von Moos Holdings AG Ord. (a)(d) 34,000 3,290,805
Winterthur Schweizerische
Versicherungs-Gesellschaft (Reg.) 6,450 4,239,463
22,998,123

SHARES VALUE (NOTE 1)
THAILAND - 0.2%
Securities One PCL:
(For. Reg.) 148,000 $ 1,329,148
(warrants) (a) 24,666 -
1,329,148
UNITED STATES OF AMERICA - 15.3%
Allstate Corp. 209,394 7,695,230
Alumax, Inc. (a) 77,300 2,280,350
Aluminum Co. of America 30,000 1,530,000
Amerada Hess Corp. 92,700 4,183,088
Anadarko Petroleum Corp. 45,000 1,951,875
Armco, Inc. (a) 210,400 1,288,700
BJ Services Co. (a) 50,239 1,180,617
Baker (J.), Inc. 151,000 868,250
Burlington Industries, Inc. (a) 256,000 2,848,000
Burlington Resources, Inc. 40,000 1,440,000
Chemical Banking Corp. 65,000 3,696,875
DST Systems, Inc. 3,000 63,000
Dayton Hudson Corp. 40,900 2,811,875
Dillard Department Stores, Inc. Class A 110,000 2,983,750
Exide Corp. 59,600 2,614,950
Federated Department Stores, Inc. (a) 115,000 2,918,125
Helmerich & Payne, Inc. 32,000 828,000
Interco, Inc. 300,000 2,212,500
International Business Machines Corp. 61,700 6,000,325
Kaiser Aluminum Corp. (a) 100 1,125
Kerr-McGee Corp. 66,600 3,671,325
Lafarge Corp. 52,336 915,880
Liz Claiborne, Inc. 125,000 3,546,875
Lo Jack Corp. (a) 150,000 2,325,000
Mohawk Industries, Inc. (a) 19,500 292,500
OM Group, Inc. 90,000 2,610,000
Philip Morris Companies, Inc. 98,000 8,281,000
President Riverboat Casinos, Inc. (a) 89,000 272,563
RJR Nabisco Holdings Corp. 138,740 4,266,255
Reading & Bates Corp. (a) 51,700 594,550
Reynolds Metals Co. 102,100 5,143,288
Schering-Plough Corp. 69,000 3,700,125
Sears, Roebuck & Co. 175,500 5,967,000
Station Casinos, Inc. (a) 129,900 1,688,700
Sundstrand Corp. 12,000 735,000
Tuboscope Vetco Corp. (a) 151,000 887,125
Union Planters Corp. 54,198 1,659,814
Unisys Corp. (a) 105,000 590,625
Wang Laboratories, Inc. (a) 14,800 246,050
Westpoint Stevens, Inc. Class A 95,400 2,015,325
Wolverine Tube, Inc. (a) 26,000 926,250
99,731,885
TOTAL COMMON STOCKS
(Cost $477,990,015) 497,322,525
PREFERRED STOCKS - 4.2%
CONVERTIBLE PREFERRED STOCKS - 0.9%
NETHERLANDS - 0.4%
Samas-Groep NV 59,306 2,761,827
UNITED STATES OF AMERICA - 0.5%
Reynolds Metals Co. $3.31 21,500 1,075,000
Unisys Corp., Series A, $3.75 76,600 2,106,500
3,181,500
TOTAL CONVERTIBLE PREFERRED STOCKS 5,943,327
PREFERRED STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
NONCONVERTIBLE PREFERRED STOCKS - 3.3%
GERMANY - 2.3%
BMW AG 8,563 $ 3,233,959
Escada AG (non-vtg.) 26,000 4,688,177
FAG Kugelfischer Georg Schaef (a) 43,000 5,555,674
Schwabengarage AG 9,692 1,892,095
15,369,905
ITALY - 1.0%
Telecom Italia Mobile SA de Risp (a) 2,900,000 3,200,253
Telecom Italia Risp 2,600,000 3,057,088
6,257,341
TOTAL NONCONVERTIBLE PREFERRED STOCKS 21,627,246
TOTAL PREFERRED STOCKS
(Cost $27,508,293) 27,570,573
GOVERNMENT OBLIGATIONS (E) - 0.3%
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (C)
MEXICO - 0.3%
Mexican Government
Cetes 0%, 1/11/96
(Cost $2,496,877) A-1 MXN 15,000,000 1,939,026
REPURCHASE AGREEMENTS - 19.4%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a
joint trading account at 5.88%,
dated 10/31/95 due 11/1/95 $ 126,841,714 126,821,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $634,816,185) $653,653,124
CURRENCY ABBREVIATIONS
MXN - Mexican peso
LEGEND
1. Non-income producing
2. 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 $18,956,160 or 2.9% of net
assets.
3. Principal amount is stated in United States dollars unless otherwise
noted.
4. A company in which the fund has ownership of at least 5% of the voting
securities is a affiliated company. A summary of the transactions during
the period in which the issuers were affiliates is a follows:
PURCHASES SALES DIVIDEND MARKET
AFFILIATE COST COST INCOME VALUE
Econosto NV $ - $ 484,998 $ - $ -
Geveke NV 546,214 486,352 148,909 5,072,192
Von Moos Holdings AG Ord. 44,619 - - 3,290,805
TOTALS $ 590,833 $ 971,350 $ 148,909 $ 8,362,997
5. 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.
6. Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $373,824,081 and $350,086,310, respectively.
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 $113,175 for the period (see Note 4 of Notes to Financial
Statements).
INCOME TAX INFORMATION
At October 31, 1995, the aggregate cost of investment securities for income
tax purposes was $635,152,430. Net unrealized appreciation aggregated
$18,500,694, of which $54,347,832 related to appreciated investment
securities and $35,847,138 related to depreciated investment securities.
The fund hereby designates $55,000 as a capital gain dividend for the
purpose of the dividend paid deduction.
For the period, interest and dividends from foreign countries were
$10,585,709 or $0.21 per share. Taxes accrued or paid to foreign countries
were $1,775,578 or $0.04 per share.
MARKET SECTOR DIVERSIFICATION (UNAUDITED)
As a Percentage of Total Value of Investment in Securities
Aerospace & Defense 0.8%
Basic Industries 12.2
Conglomerates 0.2
Construction & Real Estate 9.1
Durables 9.6
Energy 2.5
Finance 16.1
Government Obligations 0.3
Health 1.1
Holding Companies 0.4
Industrial Machinery & Equipment 5.5
Media & Leisure 0.5
Nondurables 4.4
Repurchase Agreements 19.4
Retail & Wholesale 10.2
Services 0.9
Technology 2.6
Transportation 1.1
Utilities 3.1
100.0%
WORLDWIDE
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
OCTOBER 31, 1995

ASSETS

Investment in securities, at value (including repurchase agreements of $126,821,000) (cost $634,816,185) - $ 653,653,124
See accompanying schedule

Cash 1,630,276

Receivable for investments sold 8,502,401

Receivable for fund shares sold 994,108

Dividends receivable 1,122,930

TOTAL ASSETS 665,902,839

LIABILITIES

Payable for investments purchased $ 2,527,816

Payable for fund shares redeemed 3,563,742

Accrued management fee 428,380

Other payables and accrued expenses 337,678

TOTAL LIABILITIES 6,857,616

NET ASSETS $ 659,045,223

Net Assets consist of:

Paid in capital $ 635,178,185

Undistributed net investment income 5,414,914

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions (400,880
)

Net unrealized appreciation (depreciation) on investments 18,853,004
and assets and liabilities in
foreign currencies

NET ASSETS, for 49,486,663 shares outstanding $ 659,045,223

NET ASSET VALUE, offering price $13.32
and redemption price per share ($659,045,223 (divided by) 49,486,663 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED OCTOBER 31, 1995

INVESTMENT INCOME $ 12,157,939
Dividends (including $148,909 received from affiliated issuers)

Interest 12,218,898

24,376,837

Less foreign taxes withheld (1,775,578
)

TOTAL INCOME 22,601,259

EXPENSES

Management fee $ 5,378,156

Transfer agent fees 2,049,803

Accounting fees and expenses 362,793

Non-interested trustees' compensation 3,614

Custodian fees and expenses 251,852

Registration fees 41,643

Audit 53,629

Legal 36,325

Miscellaneous 5,825

Total expenses before reductions 8,183,640

Expense reductions (8,702 8,174,938
)

NET INVESTMENT INCOME 14,426,321

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

Investment securities (including (299,395
realized gain of $94,931 on sales )
of investments in affiliated issuers)

Foreign currency transactions (4,154,724 (4,454,119
) )

Change in net unrealized appreciation (depreciation) on:

Investment securities (4,955,296
)

Assets and liabilities in 1,299,238 (3,656,058
foreign currencies )

NET GAIN (LOSS) (8,110,177
)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 6,316,144

OTHER INFORMATION

Accounting fees paid to FSC $360,752

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1995 1994

<TABLE>
<CAPTION>
<S> <C> <C>
Operations $ 14,426,321 $ 7,442,789
Net investment income

Net realized gain (loss) (4,454,119) 40,932,054

Change in net unrealized appreciation (depreciation) (3,656,058) (4,684,006)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 6,316,144 43,690,837

Distributions to shareholders (8,330,247) (2,354,702)
From net investment income

From net realized gain (29,879,122) (3,532,293)

TOTAL DISTRIBUTIONS (38,209,369) (5,886,995)

Share transactions 526,107,715 948,710,537
Net proceeds from sales of shares

Reinvestment of distributions 37,492,418 5,746,798

Cost of shares redeemed (621,399,865) (530,801,158)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS (57,799,732) 423,656,177

TOTAL INCREASE (DECREASE) IN NET ASSETS (89,692,957) 461,460,019

NET ASSETS

Beginning of period 748,738,180 287,278,161

End of period (including undistributed net investment income of $5,414,914 and $5,498,260,
respectively) $ 659,045,223 $ 748,738,180

OTHER INFORMATION
Shares

Sold 39,931,110 69,814,518

Issued in reinvestment of distributions 2,980,274 451,414

Redeemed (47,075,996) (39,135,881)

Net increase (decrease) (4,164,612) 31,130,051

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.

</TABLE>

FINANCIAL HIGHLIGHTS
YEARS ENDED OCTOBER 31,

SELECTED PER-SHARE DATA 1995 1994 B 1993 1992 1991

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 13.96 $ 12.76 $ 9.63 $ 9.61 $ 8.95

Income from Investment Operations

Net investment income .17 .08 .11 .20 .21

Net realized and unrealized gain (loss) (.08) 1.37 3.28 (.08) .53

Total from investment operations .09 1.45 3.39 .12 .74

Less Distributions (.16) E (.10) (.24) (.10) (.08)
From net investment income

From net realized gain (.57) E (.15) (.02) D - -

Total distributions (.73) (.25) (.26) (.10) (.08)

Net asset value, end of period $ 13.32 $ 13.96 $ 12.76 $ 9.63 $ 9.61

TOTAL RETURN A, C .95% 11.55% 36.10% 1.32% 8.33%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 659,045 $ 748,738 $ 287,278 $ 103,627 $ 105,029

Ratio of expenses to average net assets 1.17% 1.32% 1.40% 1.51% 1.69%

Ratio of expenses to average net assets after expense
reductions 1.16% 1.32% 1.40% 1.51% 1.69%

Ratio of net investment income to average net assets 2.05% 1.40% 1.99% 2.02% 2.19%

Portfolio turnover rate 70% 69% 57% 130% 129%

A TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE.
B EFFECTIVE NOVEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION
93-2, "DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT
PRESENTATION OF
INCOME, CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY
INVESTMENT COMPANIES." AS A RESULT, NET INVESTMENT INCOME PER SHARE
MAY REFLECT CERTAIN
RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
C 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).
D INCLUDES AMOUNTS DISTRIBUTED FROM NET REALIZED GAINS ON FOREIGN
CURRENCY RELATED TRANSACTIONS TAXABLE AS ORDINARY INCOME.
E THE AMOUNTS SHOWN REFLECT CERTAIN RECLASSIFICATIONS RELATED TO
BOOK TO TAX DIFFERENCES (SEE NOTE 1 OF NOTES TO FINANCIAL STATEMENTS).

</TABLE>

NOTES TO FINANCIAL STATEMENTS
For the period ended October 31, 1995

a SIGNIFICANT ACCOUNTING POLICIES.
Fidelity International Growth & Income Fund, Fidelity Diversified
International Fund, Fidelity International Value Fund, Fidelity Overseas
Fund and Fidelity Worldwide Fund (the funds) are funds of Fidelity
Investment Trust (the trust). 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. Each fund
is authorized to issue an unlimited number of shares. The following
summarizes the significant accounting policies of the funds:
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 funds 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.
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. The effects of changes in foreign
currency exchange rates on investments in securities are included with the
net realized and unrealized gain or loss on investment securities.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, each 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. Each fund may be subject to foreign taxes on income,
gains on investments or currency repatriation. Each fund accrues such taxes
as applicable based upon its current interpretation of the tax rules and
regulations that exist in markets in which it invests. The schedules of
investments include information regarding income taxes under the caption
"Income Tax Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date,
except certain dividends from foreign securities where the ex-dividend date
may have passed, are recorded as soon as the funds are informed of the
ex-dividend date. Interest income, which includes accretion of original
issue discount, is accrued as earned. Investment income is recorded net of
foreign taxes 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 recorded on the
ex-dividend date. Certain foreign currency gains (losses) are taxable as
ordinary income and, therefore, increase (decrease) taxable ordinary income
available for distribution.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences, which may result in distribution
reclassifications, are primarily due to differing treatments for futures
transactions, foreign currency transactions, passive foreign investment
companies (PFIC), market discount, capital loss carryforwards, and losses
deferred due to wash sales and excise tax regulations. Certain funds 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 the per-share allocation between net investment income and realized
and unrealized gain (loss). Undistributed net investment income and
accumulated undistributed net realized gain (loss) on investments and
foreign currency transactions may include temporary book and tax basis
differences which will reverse in a subsequent period. Any taxable income
or gain remaining at fiscal year end is distributed in the following year.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
b OPERATING POLICIES.
FORWARD FOREIGN CURRENCY CONTRACTS. The funds may use foreign currency
contracts to facilitate transactions in foreign securities and to manage
the funds' currency exposure. Contracts to buy generally are used to
acquire exposure to foreign currencies, while contracts to sell are used to
hedge the funds' investments against currency fluctuations. Also, a
contract to buy or sell can offset a previous contract. Losses may arise
from changes in the value of the foreign currency or if the counterparties
do not perform under the contracts' terms.
2. OPERATING POLICIES - CONTINUED
FORWARD FOREIGN CURRENCY CONTRACTS - CONTINUED
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.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the funds, along with other affiliated
entities of Fidelity Management & Research Company (FMR), may transfer
uninvested cash balances into one or more joint trading accounts. These
balances are invested in one or more repurchase agreements that mature in
60 days or less from the date of purchase, and are collateralized by U.S.
Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The funds, through their custodian, receive delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. FMR is responsible for
determining that the value of these underlying securities remains at least
equal to the resale price.
FUTURES CONTRACTS AND OPTIONS. The funds may use futures and options
contracts to manage their exposure to the stock and bond markets and to
fluctuations in interest rates and currency values. Buying futures, writing
puts, and buying calls tend to increase the funds' exposure to the
underlying instrument. Selling futures, buying puts, and writing calls tend
to decrease the funds' exposure to the underlying instrument, or hedge
other fund investments. Futures contracts involve, to varying degrees, risk
of loss in excess of the futures variation margin reflected in the
Statement of Assets and Liabilities. The underlying face amount at value of
any open futures contracts at period end, is shown in the schedule of
investments under the caption "Futures Contracts." This amount reflects
each contract's exposure to the underlying instrument at period end. Losses
may arise from changes in the value of the underlying instruments, 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.
RESTRICTED SECURITIES. The funds are 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. Restricted securities (excluding 144A issues) at the end of the
period are shown under the caption "Other Information" at the end of each
applicable fund's schedule of investments.
c PURCHASES AND SALES OF INVESTMENTS.
Information regarding purchases and sales of securities (other than
short-term securities) and the market value of future contracts opened and
closed is included under the caption "Other Information" at the end of each
applicable fund's schedule of investments.
d FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As each fund's investment adviser, FMR receives a monthly
basic fee that is calculated on the basis of a group fee rate plus a fixed
individual fund fee rate applied to the average net assets of each 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 .2700% to .5200% for the period. In the event
that these rates were lower than the contractual rates in effect during the
period, FMR voluntarily implemented the above rates, as they resulted in
the same or a lower management fee. The annual individual fund fee rate is
.45% for each fund.
The basic fee for Diversified International and Overseas is subject to a
performance adjustment (up to a maximum of (plus/minus) .20%) based on each
fund's investment performance as compared to the appropriate index over a
specified period of time.
For the period, each fund's management fee was equivalent to the following
annualized rates expressed as a percentage of average net assets after the
performance adjustment, if applicable:
Diversified International, Overseas .69%
International Growth & Income,
International Value, Worldwide .77%
SUB-ADVISER FEE. FMR, on behalf of the funds, entered into sub-advisory
agreements with Fidelity Management & Research (U.K.) Inc., Fidelity
Management & Research Far East Inc., Fidelity International Investment
Advisors (FIIA), and Fidelity Investment Japan Ltd. In add- ition, FIIA
entered into a sub-advisory agreement with its subsidiary, Fidelity
International Investment Advisors (U.K.) Limited (FIIAL U.K.). Under the
sub-advisory arrangements, FMR may receive investment advice and research
services and may grant the sub-advisers investment management authority to
buy and sell securities. FMR pays its sub-advisers either a portion of its
management fee or a fee based on costs incurred for these services. FIIA
pays FIIAL U.K. a fee based on costs incurred for either service.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
SALES LOAD. Fidelity Distributors Corporation (FDC), an affiliate of FMR,
is the general distributor of the funds. FDC was paid a 3% sales charge on
sales of shares of each fund, except for International Growth & Income
which is a no-load fund. The sales charge for Diversified International,
International Value, Overseas and Worldwide had been waived through June
30, 1995. Effective July 1, 1995, Diversified International, International
Value, Overseas and Worldwide became no-load funds.
Shares of International Growth & Income purchased before
October 12, 1990 are subject to a 1% deferred sales charge upon
redemption.
The amount received by FDC for sales charges and deferred sales charges are
shown under the caption "Other Information" on each applicable fund's
Statement of Operations.
TRANSFER AGENT FEE. Fidelity Service Co. (FSC), an affiliate of FMR, is the
funds' transfer, dividend disbursing and shareholder servicing agent.
During the period November 1, 1994 to December 31, 1994, FSC received fees
based on the type, size, number of accounts and the number of transactions
made by shareholders. Effective January 1, 1995, the Board of Trustees
approved a revised transfer agent contract pursuant to which FSC receives
account fees and asset-based fees that vary according to account size and
type of account. FSC pays for typesetting, printing and mailing of all
shareholder reports, except proxy statements.
ACCOUNTING FEE. FSC maintains the funds' accounting records. The fee is
based on the level of average net assets for the month plus out-of-pocket
expenses. The accounting and pricing fees paid to FSC are shown under the
caption "Other Information" on each fund's Statement of Operations.
BROKERAGE COMMISSIONS. Certain funds placed a portion of their portfolio
transactions with brokerage firms which are affiliates of FMR. The
commissions paid to these affiliated firms are shown under the caption
"Other Information" at the end of each applicable fund's schedule of
investments.
e TRANSACTIONS WITH AFFILIATED COMPANIES.
An affiliated company is a company in which the fund has ownership of at
least 5% of the voting securities. Information regarding affiliated
companies is included under the caption "Other Information" at the end of
each applicable fund's schedule of investments.
f BANK BORROWINGS.
Each fund is permitted to have bank borrowings for temporary or emergency
purposes to fund shareholder redemptions. Each fund has established
borrowing arrangements with certain banks. Under the most restrictive
arrangement, each 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 are shown under the caption "Other
Information" at the end of each applicable fund's schedule of investments.
g EXPENSE REDUCTIONS.
FMR directed certain portfolio trades to brokers who paid a portion of
certain funds' expenses. For the period, the expenses of Diversified
International, International Growth & Income and Worldwide were reduced by
$35,327, $3,915, and $8,702, respectively, under this arrangement.
REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees of Fidelity Investment Trust and the Shareholders of :
Fidelity International Growth & Income Fund,
Fidelity Diversified International Fund,
Fidelity International Value Fund,
Fidelity Overseas Fund,
and Fidelity Worldwide Fund:
We have audited the accompanying statements of assets and liabilities of
Fidelity Investment Trust: Fidelity International Growth & Income Fund,
Fidelity Diversified International Fund, Fidelity International Value Fund,
Fidelity Overseas Fund, and Fidelity Worldwide Fund, including the
schedules of portfolio investments, as of October 31, 1995, and the related
statements of operations for the year then ended, and the statements of
changes in net assets and the financial highlights for each of the periods
indicated. 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 audits 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 October 31, 1995 by correspondence with the
custodians 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 International Growth & Income
Fund, Fidelity Diversified International Fund, Fidelity International
Value Fund, Fidelity Overseas Fund, and Fidelity Worldwide Fund as of
October 31, 1995, the results of their operations for the year then ended,
and the changes in their net assets and the financial highlights for each
of the periods indicated, in conformity with generally accepted accounting
principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
December 20, 1995