FIDELITY INVESTMENT TRUST, N-30D, 1995-08-23

FIDELITY INVESTMENT TRUST
N-30D, 1995-08-23

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(2_FIDELITY_LOGOS)FIDELITY

SHORT-TERM WORLD INCOME
FUND
SEMIANNUAL REPORT
JUNE 30, 1995
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

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

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

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

FINANCIAL STATEMENTS 17 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 21 Notes to the financial statements.

REPORT OF INDEPENDENT 26 The auditors' opinion.
ACCOUNTANTS

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE
PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY,
ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC,
THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL
1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST
OR SEND MONEY.
PRESIDENT'S MESSAGE

DEAR SHAREHOLDER:
Although there have been positive market indications so far in 1995, no one
can predict what lies ahead for investors. Last year, stocks posted
below-average returns and bonds had one of the worst years in history. This
downturn followed a period in which the investing environment was generally
very positive.
These market ups and downs are a normal part of investing, and there are
some basic principles that are helpful for investors to remember in
different types of markets.
Keeping in mind that the effects of interest rate changes on your bond
investments will only be "paper" gains or losses unless you sell your
shares, staying in your bond fund may be appropriate if your investment
horizon is at least a year or more. The longer your investing time frame,
the more likely it is that you will retain your principal investment
through both up and down markets. For example, a 10-year time frame, such
as saving for a college education, enables you to weather these ups and
downs in a long-term fund, which has higher potential returns. An
intermediate-length fund could be appropriate if your investment horizon is
two to four years, and a short-term bond fund could be the right choice if
you need your money in one or two years.
If your time horizon is less than a year, you might want to consider moving
some of your bond investment into a money market fund, which seeks income
and a stable share price by investing in high-quality, short-term
investments. Of course, there is no assurance that a money market fund will
achieve its goal, and it is important to remember that money market funds
are not insured or guaranteed by any agency of the U.S. government.
No matter what your investment horizon or portfolio diversity, it makes
good sense to follow a regular investment plan - investing a certain amount
of money at the same time each month or quarter - and to review your
portfolio periodically. A periodic investment plan will not, of course,
assure a profit or protect against a loss.
If you have any questions, please call us at 1-800-544-8888. We stand ready
to provide the information you need to make the investments that are right
for you.
Best regards,
Edward C. Johnson 3d
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each figure
includes changes in a fund's share price, as well as reinvestment of any
dividends (or income) and capital gains (the profits the fund earns when it
sells bonds that have grown in value). You can also look at the fund's
dividends and yield.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JUNE 30, 1995 PAST 6 PAST 1 LIFE OF
MONTHS YEAR FUND

Short-Term World Income 3.25% 3.03% 16.08%

Lehman Brothers 1-3 Year Government 6.60% 7.67%
Bond Index n/a

Salomon Brothers 1-3 Year World 6.09% 7.77%
Government Bond Index n/a

Average Short World Multi-Market 3.09% 1.69%
Income Fund n/a

Consumer Price Index 1.87% 3.04% 11.15%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, or since the fund
started on October 4, 1991. For example, if you 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
Lehman Brothers 1-3 Year Government Bond Index - a broad gauge of the
performance of short-term U.S. government bonds or to the Salomon Brothers
1-3 Year World Government Bond Index which includes both U.S. and foreign
government bonds (with foreign currency exposure hedged into U.S. dollars).
To measure how the fund's performance stacked up against its peers, you can
compare it to the average short world multi-market income fund, which
reflects the performance of 160 funds with similar objectives tracked by
Lipper Analytical Services over the past six months. Both benchmarks
include reinvested dividends and capital gains, if any, and exclude sales
charges. Comparing the fund's performance to the consumer price index (CPI)
helps show how your fund did compared to inflation. (The CPI returns begin
on the month-end closest to the fund's start date.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JUNE 30, 1995 PAST 1 LIFE OF
YEAR FUND

Short-Term World Income 3.03% 4.07%

Lehman Brothers 1-3 Year Government 7.67% n/a
Bond Index

Salomon Brothers 1-3 Year World 7.77% n/a
Government Bond Index

Average Short World Multi-Market Income Fund 1.69% n/a

Consumer Price Index 3.04% 2.86%

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
Short-Term World IncSB030
10/31/91 10000.00 10000.00
11/30/91 9953.55 10077.00
12/31/91 10013.89 10199.94
01/31/92 10073.94 10219.32
02/29/92 10167.77 10249.98
03/31/92 10203.63 10242.80
04/30/92 10340.52 10322.70
05/31/92 10393.30 10395.99
06/30/92 10450.55 10477.08
07/31/92 10563.77 10568.23
08/31/92 10594.04 10624.24
09/30/92 10348.11 10730.48
10/31/92 10510.46 10756.23
11/30/92 10442.45 10754.08
12/31/92 10497.71 10828.29
01/31/93 10595.46 10917.08
02/28/93 10718.75 10997.86
03/31/93 10825.83 11027.56
04/30/93 10901.95 11086.00
05/31/93 11019.75 11100.42
06/30/93 11203.34 11199.21
07/31/93 11348.48 11238.41
08/31/93 11487.08 11319.32
09/30/93 11471.74 11355.55
10/31/93 11633.27 11410.05
11/30/93 11676.59 11431.73
12/31/93 11819.14 11496.89
01/31/94 11890.79 11532.53
02/28/94 11700.76 11463.34
03/31/94 11369.94 11435.83
04/30/94 11247.98 11422.10
05/31/94 11417.32 11435.81
06/30/94 11157.58 11430.09
07/31/94 11239.08 11504.39
08/31/94 11320.82 11504.39
09/30/94 11380.60 11521.64
10/31/94 11421.99 11566.58
11/30/94 11462.67 11588.55
12/31/94 11134.20 11610.57
01/31/95 11064.33 11746.42
02/28/95 11083.40 11865.05
03/31/95 11111.02 11958.79
04/30/95 11246.96 12075.98
05/31/95 11436.96 12271.62
06/30/95 11496.19 12317.02

$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity
Short-Term World Income Fund on October 31, 1991, shortly after the fund
started. As the chart shows, by June 30, 1995, the value of your investment
would have grown to $11,496 - a 14.96% increase on your initial investment.
For comparison, look at how the Salomon Brothers 1-3 Year World Government
Bond Index did over the same period. With dividends reinvested, the same
$10,000 investment would have grown to $12,317 - a 23.17% increase.
Beginning with this report the fund will compare its performance to the
Salomon Brothers 1-3 Year World Government Bond Index rather than the
Lehman Brothers 1-3 Year Government Bond Index. The Salomon Brothers Index
includes both U.S. and foreign government bonds (with foreign currency
exposure hedged into U.S. dollars), which is more reflective of the fund's
range of permitted investments. For comparison purposes, both indexes are
shown on Page 4.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, generally move in
the opposite direction of
interest rates. In turn, the
share price, return, and yield
of a fund that invests in
bonds will vary. That means if
you sell your shares during a
market downturn, you might
lose money. But if you can ride
out the market's ups and
downs, you may have a gain.
(checkmark)
DIVIDENDS AND YIELD
PERIODS ENDED JUNE 30, 1995 PAST PAST 6 PAST 1
MONTH MONTHS YEAR A

Dividends per share 4.61(cents) 29.28(cents) 65.95(cents)

Annualized dividend rate 6.29% 6.70% 7.30%

30-day annualized yield 5.46% - -

DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on the fund's average share price of $8.91
over the past month, $8.81 over the past six months and $9.04 over the past
year, you can compare the fund's income distributions over these three
periods.
The 30-day annualized YIELD is a standard formula for all bond funds based
on the yields of the bonds in the fund, averaged over the past 30 days.
This figure shows you the yield characteristics of the fund's investments
at the end of the period. It also helps you compare funds from different
companies on an equal basis. It does not reflect the cost of hedging and
other currency gains and losses.

A DIVIDENDS PAID ARE BASED ON THE FUND'S INVESTMENT INCOME AND DO NOT
REFLECT CURRENCY RELATED LOSSES. AS A RESULT OF CURRENCY LOSSES, DIVIDENDS
PAID DURING 1994 OF APPROXIMATELY 45.7(CENTS) PER SHARE WERE A NON-TAXABLE
RETURN OF CAPITAL.
FUND TALK: THE MANAGER'S OVERVIEW

An interview with Scott Kuldell, Portfolio Manager of Fidelity Short-Term
World Income Fund
Q. HOW HAS THE FUND PERFORMED, SCOTT?
A. The fund's total return for the six months ended June 30, 1995, was
3.25%. That's better than the 3.09% that the average short world
multi-market income fund returned during the same time period, according to
Lipper Analytical Services. For the 12-month comparison, the fund returned
3.03% versus 1.69% for the Lipper average.
Q. THOSE RETURNS LOOK BETTER THAN THEY HAVE IN THE LAST FEW REPORTS. HAVE
YOU MADE A CHANGE TO THE FUND'S STRATEGY?
A. Yes. The fund is positioned very differently from the way it was six
months ago and my investment strategy has changed significantly. When
investing in emerging markets you're exposed to event risk because those
markets - and countries - are, by definition, less stable and an event such
as a political assassination or a natural disaster can have more of an
impact there than in developed countries. In the first place, this fund no
longer actively invests in emerging markets securities. In the past, though
this fund delivered a significantly higher yield than a regular U.S.
short-term bond fund, it was subject to event risk, or the risk that some
unforeseen event could negatively affect the fund's investments in a
foreign country. Another concern was currency risk. Currencies are very
unpredictable. While bond prices may fluctuate until maturity, a currency
may go down and almost never recover. For that reason, almost all currency
holdings in the fund are hedged. Since I've removed all significant
emerging markets investments and reduced the fund's exposure to currency
risk, I feel very confident that the fund's performance will be more stable
going forward than in the past.
Q. WHAT DO YOU MEAN BY THE CURRENCY EXPOSURE BEING HEDGED?
A. The fund buys forward foreign currency contracts. They are investments
designed to reduce the fund's exposure to foreign currency risk - the
chance that movements in a country's currency will negatively affect the
fund's investments there - by tying the value of selected foreign
investments to the U.S. dollar. The goal is to try to reduce the volatility
of the fund's share price. In this fund, I'll look at a foreign bond, let's
say a 3-year Italian bond yielding 12%. If short-term interest rates in
Italy are 10%, the difference is 2%. At the same time, if comparable
short-term interest rates in the U.S. are 6%, a hedged Italian bond will
return 6%, plus 2%, or 8% in dollars, with no currency risk. It's also
important for shareholders to know that the fund is 51% invested in the
U.S. and the remainder that is invested outside the U.S. is almost fully
hedged.
Q. WHERE DO YOU FIND INVESTMENT OPPORTUNITIES FOR THE FUND?
A. Many places. For example, in some countries coupon payments on bonds are
taxable. Whoever owns the bond when the coupon is paid is obligated to pay
the tax. That means that the bonds are inexpensive just before the coupon
gets paid since domestic investors don't want to pay the tax. That presents
an opportunity for this fund since, as "foreigners" we don't pay tax in
that country, and we can buy the bond just before it pays its coupon and
can realize the value. Another opportunity is the corporate credit market
abroad. In the U.S., the corporate market is well understood and is
dominated by well-informed institutional investors. However, buyers of
corporate bonds overseas are typically retail investors who prefer
household names. With the credit analysis and research strength of
Fidelity, we are able to find the investment opportunities waiting to be
unearthed.
Q. WHAT DOES THE FUND LOOK LIKE NOW?
A. The investments by country break down as follows: 51% U.S., 30% in
European countries, 7% Canada, 2% Latin America and 1% Australia. There is
also a 9% stake in supranational obligations. The proportions probably
won't change significantly in the near future, but the U.S. component may
drop at some point. The fund is significantly invested in government
securities outside the U.S., as well as in some corporates and
supranational securities, such as bonds issued by the World Bank. The fund
also is invested in investment-grade securities, although the policies of
the fund allow it to own some lower-rated "BB" securities.
Q. YOU SAID THE FUND DIDN'T ACTIVELY INVEST IN LATIN AMERICA DURING THE
PERIOD. YET THERE ARE STILL HOLDINGS IN MEXICO AND ARGENTINA . . .
A. About 2% of the fund's investments were in Latin America on June 30,
1995 - that's down from 32% six months ago. When Mexico devalued the peso
in December of 1994, it had a devastating effect on Latin American
securities. I sold off most of the fund's position due to the extraordinary
increase in default risk, but have held on to a few illiquid securities
that I'm confident will pay off. In retrospect, however, it may have
benefitted the fund somewhat if I'd held on to a little more of the fund's
emerging market position - the dollar-denominated securities - for a little
longer. I cut them back severely because the risk of default- the
government failing to pay principal and interest payments on bonds - was so
high. However, when the immediate risk of default began to come down, the
prices went up. Finally, though the risks of sovereign default have
decreased, the risk of individual corporate defaults is still higher than
I'm comfortable with.
Q. WHAT'S YOUR OUTLOOK FOR THE NEXT SIX MONTHS?
A. Over time, I think this fund has a chance to perform well relative to
the short-term bond market. I feel good about the future of the fund. Now
that the fund is following a new index, the Salomon Brothers 1-3 Year World
Government Bond Index, it is on a more even playing field when compared
against domestic bond funds, which are the best, but by no means the only,
comparison. Besides, the index that the fund is following has historically
outperformed Treasury bills. I think the new strategy has worked well so
far. However, you have to take what the market gives you - and it hasn't
given much yield lately.
FUND FACTS
GOAL: high current income
and preservation of capital
by investing mainly in
short-term debt securities
around the world
START DATE: October 4, 1991
SIZE: as of June 30, 1995,
more than $153 million
MANAGER: Scott Kuldell,
since April 1994; manager,
Fidelity Deutsche Mark,
Sterling and Yen Portfolios,
since March 1994; joined
Fidelity in 1987
(checkmark)
SCOTT KULDELL ON THE STRATEGY
OF FIDELITY SHORT-TERM WORLD
INCOME FUND:
"The fund's shift in strategy
has the goal of increasing the
quality of its holdings while
decreasing currency and event
risk. To do that, I've begun to
manage the fund relative to
the global short-term
government bond market, and
I've directly hedged virtually
all the currency risk. This
market includes only
developed countries with
consistent records of paying
debt. The return of the
market, as measured by the
Salomon Brothers 1-3 Year
World Government Bond
Index, has historically
outperformed Treasury bills,
with slightly less volatility
than the short-term Treasury
bond market. Although that
may not be the case in the
future, I feel confident that
returns will be more
consistent than in the past.
The fund's goal is to
outperform its peers by
exploiting anomalies and
inefficiencies in the market by
using Fidelity's worldwide
credit research.
"The fund has the potential to
add value to investors by
lowering their overall portfolio
risk through global
diversification and increasing
the potential for higher returns
by exploiting global market
inefficiencies."
INVESTMENT CHANGES

The charts below highlight three different aspects of the fund's
investments: the country where they were issued, their sensitivity to
interest rate changes, and their currency exposure. The top countries in
each table differ because some securities have more interest rate risk than
others, because securities issued in one country may be denominated in
another country's currency, and because of the effects of currency hedging.
TOP COUNTRIES AS OF JUNE 30, 1995
(BY LOCATION OF ISSUER) % OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
SIX MONTHS AGO

United States 51 27

Italy 9 2

Canada 7 5

Germany 5 0

Belgium 4 0

TOP COUNTRIES ARE BASED ON THE LOCATION OF THE ISSUER OF EACH SECURITY,
INDICATING WHERE THE FUND IS EXPOSED TO POLITICAL AND CREDIT RISKS. THE
FUND'S LARGEST POSITION AS OF JUNE 30 WAS IN SECURITIES OF UNITED STATES
ISSUERS.
TOP INTEREST RATE EXPOSURES AS OF JUNE 30, 1995
(ESTIMATED, BY COUNTRY) % OF FUND'S TOTAL % OF INTEREST RATE
INTEREST RATE EXPOSURE EXPOSURE SIX MONTHS
AGO

United States 44 34

Japan 17 0

Italy 9 5

Germany 6 0

France 5 2

FIDELITY ESTIMATES INTEREST-RATE EXPOSURES BASED ON THE DURATION, OR
INTEREST-RATE SENSITIVITY, OF THE FUND'S HOLDINGS. AS OF JUNE 30, THE FUND
WAS MOST SENSITIVE TO INTEREST-RATE MOVEMENTS IN THE U.S., WHICH ACCOUNTED
FOR APPROXIMATELY 44% OF THE FUND'S INTEREST-RATE EXPOSURE.
TOP CURRENCY EXPOSURES AS OF JUNE 30, 1995
(ESTIMATED, BY CURRENCY) % OF FUND'S % OF NET ASSETS
NET ASSETS SIX MONTHS AGO

U.S. dollar 99 62

Thai Baht 0 10

Czech Koruna 0 8

Argentine peso 0 7

New Zealand dollar 0 4

THE U.S. DOLLAR EXPOSURE ABOVE INCLUDES THE EFFECTS OF FOREIGN INVESTMENTS
WHOSE CURRENCY RISK IS FULLY HEDGED. THERE WERE NO FOREIGN CURRENCY
EXPOSURES IN EXCESS OF 0.5% AS OF JUNE 30.
INVESTMENTS JUNE 30, 1995

Showing Percentage of Total Value of Investment in Securities

NONCONVERTIBLE BONDS - 10.3%
MOODY'S RATINGS (B) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (A) (NOTE 1)
CANADA - 6.1%
Ford Motor Credit Co. of Canada Ltd.
10 1/2%, 5/17/96 Aa3 CAD 4,300,000 $ 3,209,727
General Motors Acceptance Corp. of Canada Ltd.:
10%, 8/30/95 A1 CAD 2,400,000 1,754,929
11 7/8%, 9/7/95 A1 CAD 3,900,000 2,862,557
Household Financial Ltd. 7 1/4%, 9/17/98 A1 CAD 2,000,000 1,426,390
9,253,603
MEXICO - 0.6%
First Mexican Acceptance Corp. SA 8 3/4%,
9/15/96 - 1,000,000 900,000
UNITED STATES OF AMERICA - 3.6%
Associates Corp. North America 8 3/8%,
6/1/96 Aa3 1,310,000 1,334,549
Beneficial Corp. 8.26%, 8/20/96 A2 1,000,000 1,023,440
Fleet Financial Group, Inc. 5 5/8%, 7/1/95 A2 1,000,000 1,000,000
General Motors Acceptance Corp. 8.80%,
3/20/96 A3 1,000,000 1,018,030
Wells Fargo & Co. 8.20%, 11/1/96 A2 1,000,000 1,021,500
5,397,519
TOTAL NONCONVERTIBLE BONDS
(Cost $17,235,894) 15,551,122
GOVERNMENT OBLIGATIONS (F) - 66.7%
ARGENTINA - 1.7%
Province of Chaco 11 7/8%, 9/10/97 (d) - 2,583,333 2,635,775
AUSTRALIA - 0.7%
Australian Government 12 1/2%, 9/15/97 Aa2 AUD 1,350,000 1,042,710
BELGIUM - 3.6%
Kingdom of Belgium:
6 1/4%, 11/25/96 AAA BEF 100,000,000 3,552,820
9 1/4%, 1/2/98 AAA BEF 50,000,000 1,888,730
5,441,550
CANADA - 0.7%
Canadian Government 10 1/4%, 12/1/98 Aa1 CAD 1,405,000 1,109,873
GOVERNMENT OBLIGATIONS (F) - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (A) (NOTE 1)
DENMARK - 1.0%
Kingdom of Denmark 7%, 8/15/97 Aa1 DKK 8,000,000 $ 1,476,124
FRANCE - 2.4%
French Government OAT:
8 1/8%, 5/25/99 Aaa FRF 5,000,000 1,071,982
9 1/2%, 1/25/01 Aaa FRF 10,900,000 2,492,264
3,564,246
GERMANY - 4.9%
Federal Republic of Germany:
6 1/8%, 7/21/97 Aaa DEM 6,000,000 4,401,028
6 3/8%, 8/14/98 Aaa DEM 4,100,000 3,018,944
7,419,972
ITALY - 8.7%
Republic of Italy (c):
8 1/2%, 1/1/97 A1 ITL 7,000,000 4,119,997
8 1/2%, 8/1/97 A1 ITL 9,000,000 5,186,273
8 1/2%, 1/1/99 A1 ITL 7,000,000 3,870,752
13,177,022
NETHERLANDS - 2.5%
Netherland Government 6 1/4%, 7/15/98 Aaa NLG 5,700,000 3,727,815
SPAIN - 2.2%
Kingdom of Spain 7.30%, 7/30/97 (c) AAA ESP 427,000 3,298,618
SWEDEN - 1.5%
Kingdom of Sweden 10 3/4%, 1/23/97 Aa1 SEK 16,000,000 2,211,248
UNITED KINGDOM - 2.9%
United Kingdom, Great Britain & Northern Ireland:
10 1/2%, 2/21/97 Aaa GBP 1,000,000 1,666,253
14%, 5/22/01 Aaa GBP 1,500,000 2,752,755
4,419,008
GOVERNMENT OBLIGATIONS (F) - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (A) (NOTE 1)
UNITED STATES OF AMERICA - 33.9%
Federal Home Loan Banks:
4.83%, 9/21/98 (callable) Aaa $ 275,000 $ 264,043
4.89%, 10/14/98 (callable) Aaa 340,000 326,550
Federal Home Loan Mortgage Corporation:
4.78%, 2/10/97 (callable) Aaa 210,000 205,833
6.47%, 7/7/97 Aaa 350,000 352,789
Federal National Mortgage Association:
5.2%, 7/10/98 (callable) Aaa 230,000 223,603
3%, 7/13/98 (e) Aaa 300,000 299,766
4.70%, 9/10/98 (callable) Aaa 270,000 258,219
4.95%, 9/30/98 Aaa 1,680,000 1,618,116
4 7/8%, 10/15/98 (callable) Aaa 140,000 134,438
4.82%, 10/21/98 (callable) Aaa 370,000 356,447
4.94%, 10/30/98 (callable) Aaa 1,350,000 1,294,734
5.18%, 2/1/99 (callable) Aaa 2,000,000 1,934,688
Government Trust Certificates:
Class T-2 (assets of trust guaranteed by
U.S. Government through Defense Security
Assistance Agency) 9.40%, 11/15/96 Aaa 749,070 765,939
Class 3-B (assets of the Trust guaranteed by
U.S. Government through Defense Security
Assistance Agency) 8.55%, 11/15/97 Aaa 382,616 391,573
Class 1-C (assets of Trust guaranteed by
U.S. Government through Defense Security
Assistance Agency) 9 1/4%, 11/15/01 Aaa 180,000 198,274
Private Export Funding Corp. secured
9.10% 10/30/98 Aaa 60,000 65,184
Tennessee Valley Authority 4.60%, 12/15/96 Aaa 260,000 255,011
U.S. Treasury Notes:
4 3/8%, 11/15/96 Aaa 4,940,000 4,848,165
7 1/4%, 11/30/96 Aaa 22,530,000 22,956,042
5 1/8%, 3/31/98 Aaa 4,260,000 4,178,123
4 3/4%, 8/31/98 Aaa 775,000 748,356
6 3/4%, 6/30/99 Aaa 2,300,000 2,359,294
7 1/8%, 9/30/99 Aaa 2,210,000 2,301,163
7 3/4% 12/31/99 Aaa 4,500,000 4,804,470
51,140,820
TOTAL GOVERNMENT OBLIGATIONS
(Cost $99,485,740) 100,664,781

SUPRANATIONAL OBLIGATIONS - 9.5%
MOODY'S RATINGS (B) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (A) (NOTE 1)
Eurofima euro 11 3/8%, 11/30/99 Aaa GBP 200,000 $ 351,045
International Bank for Reconstruction &
Development Worldbank 4 1/2%,
12/22/97(c) Aaa JPY 1,100,000 14,005,670
TOTAL SUPRANATIONAL OBLIGATIONS
(Cost $13,470,852) 14,356,715
INTEREST INDEXED SECURITIES - 2.8%
UNITED STATES OF AMERICA - 2.8%
Citibank Nassau 7.4375%, 3/13/96 (Coupon
inversely indexed to JPY LIBOR and principal
indexed to value of 3-year Japanese securities) (g)
(Cost $4,000,000) 4,000,000 4,243,200
COMMERCIAL PAPER - 9.9%
UNITED STATES OF AMERICA - 9.9%
Corporate Asset Funding Co. 5.87%, 7/5/95 5,000,000 4,996,793
US Leasing International, Inc. 5.90%, 7/20/95 10,000,000 9,969,372
TOTAL COMMERCIAL PAPER
(Cost $14,970,508) 14,966,165
REPURCHASE AGREEMENTS - 0.8%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations), in a
joint trading account at 6.15%,
dated 6/30/95 due 7/3/95 $ 1,196,613 1,196,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $150,358,994) $ 150,977,983
FORWARD FOREIGN CURRENCY CONTRACTS
SETTLEMENT UNREALIZED
DATE(S) VALUE GAIN/(LOSS)
CONTRACTS TO BUY
2,239,595 AUD 8/1/95 $ 1,586,297 $ (24,598)
2,758,979 CAD 7/27/95 2,008,795 (6,398)
3,063,016 DEM 7/24/95 to 8/1/95 2,219,656 25,578
18,894,902 FRF 7/6/95 3,902,003 9,487
3,877,068 GBP 7/20/95 to 8/1/95 6,179,809 (49,160)
11,148,817 NZD 7/21/95 to 8/1/95 7,440,957 530,695
TOTAL CONTRACTS TO BUY
(Payable amount $22,851,913) $ 23,337,517 $ 485,604
THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 15.5%
CONTRACTS TO SELL
3,358,849 AUD 8/1/95 $ 2,379,061 $ 120,939
158,557,353 BEF 9/27/95 5,601,579 (32,300)
17,440,697 CAD 7/27/95 12,698,456 17,315
13,720,080 DEM 7/24/95 to 8/1/95 9,945,037 (212,339)
8,258,017 DKK 10/4/95 1,527,901 (9,660)
400,901 ESP 8/10/95 to 9/27/95 3,294,140 (181,190)
36,593,765 FRF 7/6/95 7,557,010 (122,491)
6,698,311 GBP 7/20/95 to 8/1/95 10,675,704 114,911
22,079,321 ITL 9/27/95 13,360,926 20,480
1,167,846,869 JPY 8/1/95 13,860,516 (76,862)
6,055,015 NLG 8/10/95 3,920,923 51,968
11,148,817 NZD 7/21/95 to 8/1/95 7,440,957 (317,360)
16,514,296 SEK 10/4/95 2,253,773 (1,814)
TOTAL CONTRACTS TO SELL
(Receivable amount $93,887,580) $ 94,515,983 $ (628,403)
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 62.6%
$ (142,799)
CURRENCY ABBREVIATIONS
AUD - Australian dollar
BEF - Belgian franc
GBP - British pound
CAD - Canadian dollar
DKK - Danish krone
NLG - Dutch guilder
FRF - French franc
DEM - German deutsche mark
ITL - Italian lira
JPY - Japanese yen
NZD - New Zealand dollar
ESP - Spanish peseta
SEK - Swedish krona
LEGEND
1. Principal amount is stated in United States dollars unless otherwise
noted.
2. Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
3. Principal amount in thousands.
4. Restricted securities - Investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on each holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
Province of Chaco
11 7/8%, 9/10/97 3/9/94 $ 2,728,145
5. The coupon rate shown on floating or
adjustable rate securities represents the
rate at period end.
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. Coupon is inversely indexed to a floating interest rate multiplied by a
specified factor. If the floating rate is high enough, the coupon rate may
be zero or be a negative amount that is carried forward to reduce future
interest and/or principal payments. The price may be considerably more
volatile than the price of a comparable fixed rate security. The rate shown
is the rate at period end.
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 78.4% AAA, AA, A 80.2%
Baa 0.0% BBB 0.7%
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 2.3%. FMR has determined that unrated
debt securities that are lower quality account for 1.8% of the total value
of investment in securities.
INCOME TAX INFORMATION
At June 30, 1995, the aggregate cost of investment securities for income
tax purposes was $150,358,994. Net unrealized appreciation aggregated
$618,989, of which $2,901,652 related to appreciated investment securities
and $2,282,663 related to depreciated investment securities.
At December 31, 1994, the fund had a capital loss carryforward of
approximately $16,391,000 of which $349,000, $2,324,000 and $13,718,000
will expire on December 31, 1999, 2000 and 2002, respectively.
The fund has elected to defer to its fiscal year ending December 31, 1995
$5,989,239 of losses recognized during the period November 1, 1994 to
December 31, 1994.
MARKET SECTOR DIVERSIFICATION (Unaudited)
As a Percentage of Total Value of Investments
Finance 31.7
Foreign Government Obligations 32.8
Government Obligations 33.9
Media & Leisure 0.6
Repurchase Agreements 0.8
Transportation 0.2
100.0%
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JUNE 30, 1995

ASSETS

Investment in securities, at value (including repurchase $ 150,977,983
agreements of $1,196,000) (cost $150,358,994) -
See accompanying schedule

Unrealized appreciation on foreign currency contracts 937,078

Receivable for closed foreign currency contracts 117,468

Interest receivable 3,322,562

TOTAL ASSETS 155,355,091

LIABILITIES

Payable to custodian bank $ 121,076

Unrealized depreciation on foreign currency contracts 1,079,877

Payable for closed foreign currency contracts 4,820

Payable for fund shares redeemed 142,016

Distributions payable 130,756

Accrued management fee 78,439

Other payables and accrued expenses 105,453

TOTAL LIABILITIES 1,662,437

NET ASSETS $ 153,692,654

Net Assets consist of:

Paid in capital $ 188,220,378

Distributions in excess of net investment income (4,178,972)

Accumulated undistributed net realized gain (loss) on (31,037,912)
investments and foreign currency transactions

Net unrealized appreciation (depreciation) on 689,160
investments and assets and liabilities in foreign
currencies

NET ASSETS, for 17,276,742 shares outstanding $ 153,692,654

NET ASSET VALUE, offering price and redemption price per $8.90
share ($153,692,654 (divided by) 17,276,742 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JUNE 30, 1995

INVESTMENT INCOME $ 7,844,934
Interest

Less foreign taxes withheld (310,563)

TOTAL INCOME 7,534,371

EXPENSES

Management fee $ 591,521

Transfer agent fees 235,553

Accounting fees and expenses 58,912

Non-interested trustees' compensation 693

Custodian fees and expenses 45,789

Registration fees 18,029

Audit 54,990

Legal 939

Interest 7,402

Miscellaneous 1,720

TOTAL EXPENSES 1,015,548

NET INVESTMENT INCOME 6,518,823

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

Investment securities (12,194,220)

Foreign currency transactions 389,947 (11,804,273)

Change in net unrealized appreciation (depreciation) on:

Investment securities 15,114,420

Assets and liabilities in foreign currencies (4,950,381) 10,164,039

NET GAIN (LOSS) (1,640,234)

NET INCREASE (DECREASE) IN NET ASSETS $ 4,878,589
RESULTING FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED DECEMBER 31,
JUNE 30, 1995 1994

INCREASE (DECREASE) IN NET ASSETS

Operations $ 6,518,823 $ 24,839,382
Net investment income

Net realized gain (loss) (11,804,273) (33,931,861)

Change in net unrealized appreciation (depreciation) 10,164,039 (13,418,051)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 4,878,589 (22,510,530)
FROM OPERATIONS

Distributions to shareholders (6,509,586) (6,841,239)
From net investment income

In excess of net investment income - (1,710,314)

Return of capital - (15,696,807)

TOTAL DISTRIBUTIONS (6,509,586) (24,248,360)

Share transactions 20,579,952 192,214,787
Net proceeds from sales of shares

Reinvestment of distributions 5,483,541 20,522,507

Cost of shares redeemed (136,147,042) (323,172,774)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (110,083,549) (110,435,480)
FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS (111,714,546) (157,194,370)

NET ASSETS

Beginning of period 265,407,200 422,601,570

End of period (including distributions in excess of $ 153,692,654 $ 265,407,200
net investment income of $(4,178,972) and
$(4,188,209), respectively)

OTHER INFORMATION
Shares

Sold 2,334,605 20,004,614

Issued in reinvestment of distributions 622,582 2,165,313

Redeemed (15,473,391) (33,838,814)

Net increase (decrease) (12,516,204) (11,668,887)

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED TWO MONTH YEAR OCTOBER 4, 1991
ENDED JUNE 30, DECEMBER 31, PERIOD ENDED (COMMENCEME
ENDED OCTOBER NT OF
DECEMBER 31, OPERATIONS) TO
31, OCTOBER 31,

1995 1994 1993 D 1992 1992 1991

</TABLE>

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

Net asset value, $ 8.910 $ 10.190 $ 9.680 $ 9.800 $ 10.040 $ 10.000
beginning of period

Income from .298 E .644 .564 .191 .835 .061
Investment
Operations
Net investment
income

Net realized and (.015) (1.218) .621 (.203) (.338) .037
unrealized gain
(loss)

Total from .283 (.574) 1.185 (.012) .497 .098
investment
operations

Less Distributions (.293) (.199) (.543) (.108) (.737) (.058)
From net
investment
income

In excess of net - (.050) (.132) - - -
investment
income

Return of capital - (.457) - - - -

Total distributions (.293) (.706) (.675) (.108) (.737) (.058)

Net asset value, end $ 8.900 $ 8.910 $ 10.190 $ 9.680 $ 9.800 $ 10.040
of period

TOTAL RETURN B, C 3.25% (5.80) 12.59% (.12) 5.10% .98%
% %

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of $ 153,693 $ 265,407 $ 422,602 $ 458,846 $ 648,448 $ 44,318
period (000 omitted)

Ratio of expenses to 1.05% 1.01% 1.00% 1.20% 1.09% 1.00%
average net assets A A A

Ratio of expenses to 1.05% 1.01% 1.00% 1.23% 1.09% 2.87%
average net assets A A A
before expense
reductions

Ratio of net 6.72% 7.54% 8.00% 8.63% 9.04% 9.07%
investment income A A A
to average net
assets

Portfolio turnover rate 355% 134% 160% 117% 154% 62%
A A A

A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS
SHOWN.
D EFFECTIVE JANUARY 1, 1993 THE FUND ADOPTED STATEMENT OF POSITION 93-2, "DETERMINATION, DISCLOSURE, AND
FINANCIAL STATEMENT PRESENTATION OF INCOME, CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY
INVESTMENT COMPANIES." AS A RESULT, 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 OUTSTANDING.

</TABLE>

NOTES TO FINANCIAL STATEMENTS
For the period ended June 30, 1995

1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Short-Term World Income Fund (the fund) is a fund of Fidelity
Investment Trust (the trust) and is authorized to issue an unlimited number
of shares. The trust is registered under the Investment Company Act of
1940, as amended (the 1940 Act), as an open-end management investment
company organized as a Massachusetts business trust. The following
summarizes the significant accounting policies of the fund:
SECURITY VALUATION. Securities for which quotations are readily available
are valued at the last sale price, or if no sale price, at the closing bid
price in the principal market in which such securities are normally traded.
Securities (including restricted securities) for which quotations are not
readily available are valued primarily using dealer-supplied valuations or
at their fair value as determined in good faith under consistently applied
procedures under the general supervision of the Board of Trustees.
Short-term securities maturing within sixty days of their purchase date are
valued at amortized cost or original cost plus accrued interest, both of
which approximate current value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Purchases and
sales of securities, income receipts, and expense payments are translated
into U.S. dollars at the prevailing exchange rate on the respective dates
of the transactions.
Net realized gains and losses on foreign currency transactions represent
net gains and losses from sales and maturities of forward currency
contracts and foreign currency options, disposition of foreign currencies,
currency gains and losses realized between the trade and settlement dates
on securities transactions, and the difference between the amount of net
investment income accrued and the U.S. dollar amount actually received. The
effects of changes in foreign currency exchange rates on investments in
securities are included with the net realized and unrealized gain or loss
on investment securities.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes substantially all of its taxable income for
its fiscal year. The schedule of investments includes information regarding
income taxes under the caption "Income Tax Information."
INVESTMENT INCOME. Interest income, which includes accretion of original
issue discount, is accrued as earned. Investment income is recorded net of
foreign taxes withheld where recovery of such taxes is uncertain.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are declared daily and paid
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
monthly from net investment income. Distributions from realized gains, if
any, are recorded on the ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences, which may result in distribution
reclassifications, are primarily due to differing treatments for futures
and options transactions, foreign currency transactions, market discount,
capital loss carryforwards and losses deferred due to wash sales, futures
and options and excise tax regulations.
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). Distributions in excess of net investment
income and accumulated undistributed net realized gain (loss) on
investments and foreign currency transactions may include temporary book
and tax basis differences that will reverse in a subsequent period. Any
taxable income or gain remaining at fiscal year end is distributed in the
following year.
For the period ended December 31, 1994, the fund's distributions exceeded
the aggregate amount of taxable income and net realized gains resulting in
a return of capital. This was due to certain foreign currency losses which
decreased taxable income available for distribution after certain
distributions had been made.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
FORWARD FOREIGN CURRENCY CONTRACTS. The fund may use foreign currency
contracts to facilitate transactions in foreign securities and to manage
the fund's currency exposure. Contracts to buy generally are used to
acquire exposure to foreign currencies, while contracts to sell are used to
hedge the fund's investments against currency fluctuations. Also, a
contract to buy or sell can offset a previous contract. These contracts
involve market risk in excess of the unrealized gain or loss reflected in
the fund's Statement of Assets and Liabilities. The U.S. dollar value of
the currencies the fund has committed to buy or sell is shown in the
schedule of investments under the caption "Forward Foreign Currency
Contracts." This amount represents the aggregate exposure to each currency
the fund has acquired or hedged through currency contracts at period end.
Losses may arise from changes in the value of the foreign currency or if
the counterparties do not perform under the contracts' terms.
The U.S. dollar value of forward foreign currency contracts is determined
using forward currency exchange rates supplied by a quotation service.
Purchases and sales of forward foreign currency contracts having the same
settlement date and broker are offset and any realized gain (loss) is
recognized on the date of offset;
2. OPERATING POLICIES - CONTINUED
FORWARD FOREIGN CURRENCY
CONTRACTS - CONTINUED
otherwise, gain (loss) is recognized on settlement date. Contracts that
have been offset with different counterparties are reflected as both a
contract to buy and a contract to sell in the schedule of investments under
the caption "Forward Foreign Currency Contracts."
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other affiliated
entities of Fidelity Management & Research Company (FMR), may transfer
uninvested cash balances into one or more joint trading accounts. These
balances are invested in one or more repurchase agreements 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 fund, through its custodian, receives delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. FMR, the fund's
investment adviser, is responsible for determining that the value of these
underlying securities remains at least equal to the resale price.
FUTURES CONTRACTS AND OPTIONS. The fund may use futures and options
contracts to manage its exposure to the bond market and to fluctuations in
interest rates and currency values. Buying futures, writing puts, and
buying calls tend to increase the fund's exposure to the underlying
instrument. Selling futures, buying puts, and writing calls tend to
decrease the fund's exposure to the underlying instrument, or hedge other
fund investments. Losses may arise from changes in the value of the
underlying instruments, if there is an illiquid secondary market for the
contracts, or if the counterparties do not perform under the contracts'
terms.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Exchange-traded
options are valued using the last sale price or, in the absence of a sale,
the last offering price. Options traded over-the-counter are valued using
dealer-supplied valuations.
INDEXED SECURITIES. The fund may invest in indexed securities whose values
are linked either directly or inversely to changes in foreign currencies,
interest rates, commodities, indices, or other underlying instruments. The
fund uses these securities to increase or decrease its exposure to
different underlying instruments and to gain exposure to markets that might
be difficult to invest in through conventional securities. Indexed
securities may be more volatile than their underlying instruments, but any
loss is limited to the amount of the original investment.
RESTRICTED SECURITIES. The fund is permitted to invest in privately placed
restricted securities. These securities may be resold in transactions
exempt from registration or to the public if the securities are registered.
Disposal of these securities may involve time-consuming negotiations and
expense, and prompt sale at an acceptable price may be difficult. At the
end of the period, restricted securities (excluding 144A issues) amounted
to $2,635,775 or 1.7% of net assets.
3. PURCHASES AND SALES
OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $248,221,164 and $251,604,349, respectively, of which U.S.
government and government agency obligations aggregated $98,415,104 and
$59,375,537, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly
fee that is calculated on the basis of a group fee rate plus a fixed
individual fund fee rate applied to the average net assets of the fund. The
group fee rate is the weighted average of a series of rates and is based on
the monthly average net assets of all the mutual funds advised by FMR. The
rates ranged from .1200% to .3700% 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
the period, the management fee was equivalent to an annualized rate of .60%
of average net assets.
SUB-ADVISER FEE. FMR, on behalf of the fund, entered into sub-advisory
agreements with affiliates of FMR. In addition, one of the sub-advisers,
Fidelity International Investment Advisors (FIIA), entered into a
sub-advisory agreement with its subsidiary, Fidelity International
Investment Advisors (U.K.) Limited (FIIAL U.K.). Under the sub-advisory
arrangements, FMR may
receive investment advice and research services and may grant the
sub-advisers investment management authority to buy and sell securities.
FMR pays its sub-advisers either a portion of its management fee or a fee
based on costs incurred for these services. FIIA pays FIIAL U.K. a fee
based on costs incurred for either service.
DISTRIBUTION AND SERVICE PLAN.
Pursuant to the Distribution and Service Plan (the Plan), and in accordance
with Rule 12b-1 of the 1940 Act, FMR or the fund's distributor, Fidelity
Distributors Corporation (FDC), an affiliate of FMR, may use their
resources to pay administrative and promotional expenses related to the
sale of the fund's shares. Subject to the approval of the Board of
Trustees, the Plan also authorizes payments to third parties that assist in
the sale of the fund's shares or render shareholder support services. No
payments were made to third parties under the Plan during the period.
TRANSFER AGENT FEES. Fidelity Service Co. (FSC), an affiliate of FMR, is
the fund's transfer, dividend disbursing and shareholder servicing agent.
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.
Under the prior transfer agent contract, FSC received fees based on type,
size, number of accounts and the number of transactions made by
shareholders. FSC pays for typesetting, printing and mailing of all
shareholder reports, except proxy statements.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
ACCOUNTING FEES. FSC maintains the fund's accounting records. The fee is
based on the level of average net assets for the month plus out-of-pocket
expenses.
5. BANK BORROWINGS.
The fund is permitted to have bank borrowings for temporary or emergency
purposes to fund shareholder redemptions. The fund has established
borrowing arrangements with certain banks. Under the most restrictive
arrangement, the fund must pledge to the bank securities having a market
value in excess of 220% of the total bank borrowings. The interest rate on
the borrowings is the bank's base rate, as revised from time to time. The
maximum loan and the average daily loan balances during the periods for
which loans were outstanding amounted to $7,546,000 and $5,649,429,
respectively. The weighted average interest rate was 6.7%.
REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees of Fidelity Investment Trust and the Shareholders of
Fidelity Short-Term World Income Fund:
We have audited the accompanying statement of assets and liabilities of
Fidelity Investment Trust: Fidelity Short-Term World Income Fund,
including the schedule of portfolio investments, as of June 30 1995, and
the related statement of operations for the six months then ended, the
statement of changes in net assets for the six months ended June 30, 1995
and for the year ended December 31, 1994, and the financial highlights for
the six months ended June 30, 1995, for each of the two years in the period
ended December 31, 1994, for the two month period ended December 31, 1992,
for the year ended October 31, 1992 and for the period October 4, 1991
(commencement of operations) to October 31, 1991. These financial
statements and financial highlights are the responsibility of the fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of June 30, 1995 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Investment Trust: Fidelity Short-Term World Income Fund as of
June 30, 1995, the results of its operations for the six months then ended,
the changes in its net assets for the six months ended June 30, 1995 and
for the year ended December 31, 1994, and the financial highlights for the
six months ended June 30, 1995, for each of the two years in the period
ended December 31, 1994, for the two month period ended December 31, 1992,
for the year ended October 31, 1992 and for the period October 4, 1991
(commencement of operations) to October 31, 1991, in conformity with
generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
August 14, 1995
TO CALL FIDELITY

FOR FUND INFORMATION AND QUOTES
The Fidelity Telephone Connection offers you special automated telephone
services for quotes and balances. The services are easy to use,
confidential and quick. All you need is a Touch Tone telephone.
YOUR PERSONAL IDENTIFICATION NUMBER
(PIN)
The first time you call one of our automated telephone services, we'll ask
you
to set up your Personal Identification
Number (PIN). The PIN assures that
only you have automated telephone
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(2_FIDELITY_LOGOS)FIDELITY

NEW MARKETS INCOME
FUND
SEMIANNUAL REPORT
JUNE 30, 1995
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

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

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

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

FINANCIAL STATEMENTS 17 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 21 Notes to the financial statements.

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR
ACCOMPANIED BY
AN EFFECTIVE PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY,
ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, THE FEDERAL
RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISK,
INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL
1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST
OR SEND MONEY.
PRESIDENT'S MESSAGE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. A fund's total
return includes changes in a fund's share price, plus reinvestment of any
dividends (or income) and capital gains (the profits the fund earns when it
sells investments that have grown in value). You can also look at the
fund's income to measure performance. If Fidelity had not reimbursed
certain fund expenses during the periods shown, the total returns and
dividends would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JUNE 30, 1995 PAST 6 PAST 1 LIFE OF
MONTHS YEAR FUND

New Markets Income -7.99% 1.86% 6.60%

J.P. Morgan Emerging Markets Bond 9.23% 10.94% n/a
Index

Average General World Income Fund 10.15% 10.61% n/a

Consumer Price Index 1.87% 3.04% 5.90%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, or since the fund
began on May 4, 1993. 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 those of the J.P. Morgan
Emerging Markets Bond Index - a broad measure of bond performance in
developing countries available at month end. To measure how the fund's
performance stacked up against its peers, you can compare it to the average
general world income fund, which reflects the performance of 154 funds with
similar objectives tracked by Lipper Analytical Services over the past six
months. Both benchmarks include reinvested dividends and capital gains, if
any, and exclude the effects of sales charges. Comparing the fund's
performance to the consumer price index (CPI) helps show how the fund did
compared to inflation. (The CPI returns begin on the month end closest to
the fund's start date.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JUNE 30, 1995 PAST 1 LIFE OF
YEAR FUND

New Markets Income 1.86% 3.00%

J.P. Morgan Emerging Markets Bond Index 10.94% n/a

Average General World Income Fund 10.61% n/a

Consumer Price Index 3.04% 2.68%

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 New Markets IJP Morgan Emerging Ma
05/31/93 10000.00 10000.00
06/30/93 10397.82 10350.00
07/31/93 10924.43 10781.60
08/31/93 11248.31 10998.31
09/30/93 11606.78 11142.38
10/31/93 12523.77 12081.69
11/30/93 12661.08 11960.87
12/31/93 13478.16 12691.68
01/31/94 13983.39 12725.95
02/28/94 12575.86 11667.15
03/31/94 10685.31 10332.43
04/30/94 10235.00 10337.59
05/31/94 10771.77 11050.89
06/30/94 10158.89 10161.29
07/31/94 10438.23 10411.26
08/31/94 11589.51 11155.66
09/30/94 12162.19 11264.99
10/31/94 11932.04 10946.19
11/30/94 11881.46 11057.84
12/31/94 11247.49 10321.39
01/31/95 9945.27 9964.27
02/28/95 9236.93 9445.13
03/31/95 8944.32 9177.83
04/30/95 9574.00 10163.53
05/31/95 10210.80 11058.94
06/30/95 10348.34 11273.48

$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity New
Markets Income Fund on May 31, 1993, shortly after the fund started. As the
chart shows, by June 30, 1995, the value of your investment would have
grown to $10,348 - a 3.48% increase on your initial investment. For
comparison, look at how the J.P. Morgan Emerging Markets Bond Index did
over the same period. With dividends reinvested, the same $10,000 would
have grown to $11,272 - a 12.72% 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.
(checkmark)
DIVIDENDS AND YIELD
PERIODS ENDED JUNE 30, 1995 PAST PAST 6 PAST 1
MONTH MONTHS YEAR

Dividends per share 7.0(cents) 38.84(cents) 69.05(cents)

Annualized dividend rate 9.65% 9.18% 7.24%

30-day annualized yield 11.51% - -

DIVIDENDS per share show the income paid by the fund for a set period and
do not reflect any tax reclassifications. If you annualize this number,
based on an average net asset value of $8.83 over the past month, $8.53
over the past six months and $9.54 over the past year, you can compare the
fund's income over these three periods.
The 30-day annualized YIELD is a standard formula for all bond funds based
on the yields of the bonds in the fund, averaged over the past 30 days.
This figure shows you the yield characteristics of the fund's investments
at the end of the period. It also helps you compare funds from different
companies on an equal basis. It does not reflect the cost of hedging and
other currency gains and losses. If Fidelity had not reimbursed certain
fund expenses during the period shown, the yield would have been 11.47%.
FUND TALK: THE MANAGER'S OVERVIEW

NOTE TO SHAREHOLDERS: On June 20, 1995, John Carlson (right photo) became
portfolio manager of Fidelity New Markets Income Fund. The following is an
interview with Jonathan Kelly - who managed the fund during most of the
period covered by this report - with some comments from John Carlson on
changes in the fund, and his outlook and strategy.
Q. JONATHAN, HOW HAS THE FUND
PERFORMED?
J.K. It has been a difficult six months for the fund. For the six months
ended June 30, 1995, the fund had a total return of -7.99%. During the same
period, the average general world income fund returned 10.15%, according to
Lipper Analytical Services. The J.P. Morgan Emerging Markets Bond Index
returned 9.23% for the same period. For the 12 months ended June 30, the
fund returned 1.86%, while the average general world income fund tracked by
Lipper returned 10.61%. The J.P. Morgan Emerging Markets Bond Index
returned 10.94% for the same period.
Q. WHY DID THE FUND UNDERPERFORM?
A. When comparing the fund's returns to the Lipper average, it's important
to note that many other funds in the group don't share the objective of
investing mainly in emerging markets. Instead, many invest in countries
with an investment-grade rating. Those countries generally performed well
in the first six months of the year. Emerging markets, on the other hand,
were staggered by the fallout from Mexico's devaluation of the peso in
December 1994.
Q. YET THE EMERGING MARKET INDEX POSTED POSITIVE RETURNS FOR BOTH THE SIX-
AND 12-MONTH PERIODS, BUT THE FUND LAGGED . . .
A. Right. The index had positive returns because emerging markets rebounded
smartly starting in March. In order to explain the fund's relative
performance, let's take a step back. I took over the fund at the end of
January during a period of great turbulence in the emerging markets. At
that time, the fund was aggressively positioned in a way that had helped it
perform quite well during parts of 1994. In the aftermath of the Mexican
devaluation and subsequent sell-offs in many emerging markets, the fund
suffered because it held some securities that quickly became illiquid - or
difficult to trade - as the markets were falling. In addition, shareholder
flows were volatile and in order to meet redemptions I initially maintained
a minimum 15% cash position that was later reduced to a 10% minimum cash
position. Over the period, I also reduced the fund's investments in some of
the more aggressive and less liquid securities. As a result of these two
factors, the fund was not able to take full advantage of the market
recovery beginning in mid-March.
Q. WHAT HELPED EMERGING MARKETS TURN AROUND?
A. Over long periods of time, the most important factor in investing in
emerging markets is the perception of whether a country's creditworthiness
is improving or deteriorating. However, there are also periods of time when
emerging markets enter a liquidity-driven phase, when cash flows into or
out of the markets can affect debt payments. After Mexico devalued the peso
- which was unforeseen because the Mexican government had given assurances
it would not do so - the question was no longer, "Are long-term credit
fundamentals improving?" but rather, "Will I get paid tomorrow?" Three
factors helped turn the situation around. First, the precipitous fall in
bond prices created a dramatically oversold environment, where value had
become compelling. Second, the external balance in Mexico adjusted much
more quickly than expected so that the country changed from being a net
importer to a net exporter. The trade surplus increased the country's
supply of hard currency, making it easier to repay debt. Finally, the U.S.
bond market rallied, helping the market for all long-duration assets, such
as Brady bonds - emerging market securities that are dollar-denominated and
partially backed by U.S. government bonds. I should add that the
re-election of President Menem in Argentina - who had run on a platform of
continued economic reform - and Poland's attainment of an investment grade
rating from Moody's Investors Service also helped improve investor
sentiment regarding emerging markets.
Q. TURNING TO YOU, JOHN, WHAT CHANGES HAVE YOU MADE SINCE TAKING OVER THE
FUND?
J.C. I've added some Latin short-term, high-quality corporate securities to
the portfolio. At this stage in the emerging market liquidity cycle, these
securities represent good value. The lack of new issuance since the Mexican
devaluation and the demand from buyers crossing over from high-yield
markets should cause these securities to perform well. Beyond that, I'm
looking to broaden the universe of securities in the fund, creating more of
a balance among Latin America, Eastern Europe, Africa and Southeast Asia.
That will take us to places such as South Africa and Russia. I also will
take a critical look at local currencies. As always, the security selection
will be research-driven, backed by Fidelity's sovereign, corporate and
quantitative research staffs.
Q. WHAT'S YOUR OUTLOOK?
A. I believe there will be a continued increase in liquidity globally, with
a likelihood of lower interest rates and a relatively stronger flow of
funds into Latin America and out of Eastern Europe. More capital should
flow into the major markets - such as Mexico, Brazil and Argentina -
relative to smaller markets such as Ecuador or Panama. Even though there is
also a strong likelihood of continued volatility in the Latin markets, I'll
use our research to identify investments with a good risk/reward profile.
I'll also look for opportunities in Eastern Europe, where I believe there
is a good chance for relative stability.
FUND FACTS
GOAL: high current income,
followed by capital
appreciation, by investing
mainly in debt securities and
other instruments of issuers
in emerging markets around
the world
START DATE: May 4, 1993
SIZE: as of June 30, 1995,
more than $171 million
MANAGER: Jonathan Kelly,
January 1995 to June 1995;
John Carlson, since June 1995;
manager, Fidelity Advisor
Emerging Markets Income
Fund, since June 1995;
joined Fidelity in June 1995
(checkmark)
JOHN CARLSON ON HIS
INVESTMENT APPROACH:
"I have a mosaic approach to
investing. That is, I build an
overall picture from many little
pieces of information. I start
by looking at what's
happening in developed
markets, including the actions
of the Federal Reserve
Board, the German
Bundesbank and the Bank of
Japan. These are the big
drivers globally. I layer in
what's happening regionally in
terms of trade and capital
flows. I then analyze each
country's monetary and fiscal
policy, paying particular
attention to the independence
of the central bank and the
strength of its currency.
Financial reserves, local
capital markets,
demographics, education
level and politics are among
some of the other variables
studied. Historical perspective
is also crucial to fully
comprehending a country in
terms of its social and
economic policies. Corporate
bonds are evaluated from the
bottom up, using research to
discern an issuer's ability to
meet its obligations. When
you put all of this together,
you get a comprehensive
picture of the world in terms of
financial flows and investment
opportunities."
INVESTMENT CHANGES

The charts below highlight two different aspects of the fund's investments:
the country where they were issued and their currency exposure. The top
countries in each table may differ because securities issued in one country
may be denominated in another country's currency, and because of the
effects of currency hedging.
TOP COUNTRIES AS OF JUNE 30, 1995
(EXCLUDING REPURCHASE AGREEMENTS) % OF FUND'S % OF FUND'S INVESTMENTS
INVESTMENTS 6 MONTHS AGO

Brazil 32.8 23.2

Argentina 17.3 13.5

Mexico 6.4 8.3

Bulgaria 4.5 6.9

Czech Republic 4.2 0

TOP COUNTRIES ARE BASED ON THE LOCATION OF THE ISSUER OF EACH SECURITY,
INDICATING WHERE THE FUND IS EXPOSED TO POLITICAL AND CREDIT RISKS. THE
FUND'S LARGEST POSITION AS OF JUNE 30, 1995, WAS IN SECURITIES OF BRAZILIAN
ISSUERS.
TOP CURRENCY EXPOSURES AS OF JUNE 30, 1995
(ESTIMATED, BY CURRENCY) % OF FUND'S % OF NET ASSETS
NET ASSETS 6 MONTHS AGO

U.S. dollar 81 66

Brazilian real 8 22

Czech koruna 4 0

Thai baht 4 0

Indonesian rupiah 2 0

THE U.S. DOLLAR EXPOSURE ABOVE INCLUDES THE EFFECTS OF FOREIGN INVESTMENTS
WHOSE CURRENCY RISK IS
FULLY HEDGED. THE BRAZILIAN REAL, AT APPROXIMATELY 8% OF ASSETS, WAS THE
FUND'S LARGEST FOREIGN CURRENCY
EXPOSURE AS OF JUNE 30, 1995.
AVERAGE YEARS TO MATURITY AS OF JUNE 30, 1995
6 MONTHS AGO

Years 12.8 9.5

AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM
EACH OF THE FUND'S BONDS, WEIGHTED BY DOLLAR AMOUNT.
ASSET ALLOCATION
AS OF JUNE 30, 1995 AS OF DECEMBER 31, 1994
Row: 1, Col: 1, Value: 22.8
Row: 1, Col: 2, Value: 5.6
Row: 1, Col: 3, Value: 2.1
Row: 1, Col: 4, Value: 65.5
Row: 1, Col: 5, Value: 4.0
Row: 1, Col: 1, Value: 4.8
Row: 1, Col: 2, Value: 20.5
Row: 1, Col: 3, Value: 9.4
Row: 1, Col: 4, Value: 58.8
Row: 1, Col: 5, Value: 6.5
Corporate bonds 4.1%
Government
obligations 67.4%
Stocks 0.1%
Other 5.6%
Short-term
investments 22.8%
Corporate bonds 6.5%
Government
obligations 58.8%
Stocks 9.4%
Other 20.5%
Short-term
investments 4.8%
INVESTMENTS JUNE 30, 1995 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

NONCONVERTIBLE BONDS - 4.1%
MOODY'S RATINGS (B) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (A) (NOTE 1)
BRAZIL - 0.6%
Ceval Alimentos 10 3/4%, 7/11/96 (e) - $ 1,000,000 $ 995,000
COLOMBIA - 1.5%
Banco Commercial Columbia
8 5/8%, 6/2/00 (e) - 1,000,000 1,008,750
Centragas Transpotadora De Gas 10.65%,
12/1/10 (e) - 1,400,000 1,445,500
2,454,250
MEXICO - 2.0%
First Mexican Acceptance Corp.
euro 10 3/4%, 9/15/96 - 2,000,000 900,000
Grupo Condumex SA de CV 6 1/4%, 7/27/96 - 620,000 576,600
Grupo Televisa SA de CV 5.8125%, 4/7/96 (g) - 1,750,000 1,653,750
Third Mexican Acceptance Corp. coll. notes gtd.
by Grupo Sidek SA and Grupo Situr SA
10 1/2%, 3/15/98 (e) - 190,000 85,500
3,215,850
TOTAL NONCONVERTIBLE BONDS
(Cost $7,914,520) 6,665,100
FOREIGN GOVERNMENT OBLIGATIONS - 67.4% (J)
ARGENTINA - 17.3%
Argentina Republic:
BOCON 6.0625%, 4/1/01 (g) B1 4,195,499 2,617,278
Brady euro:
discount 6 7/8%, 3/31/23 (g) B1 7,000,000 4,016,250
par 5%, 3/31/23 (h) B1 33,500,000 15,954,375
7.3125%, 3/31/05 (g) BB- 9,600,000 5,892,000
28,479,903
BRAZIL - 32.2%
Brazil Federative Republic:
Brady:
capitalization bond 8%, 4/15/14 B2 15,085,800 7,410,899
eligible interest 7 1/4%, 4/15/06 (g) - 10,000,000 5,987,500
par euro 4 1/4%, 4/15/24 (h) - 27,000,000 11,981,250
par 4 1/4%, 4/15/24 (h) - 2,500,000 1,109,375
IDU euro 7.8125%, 1/1/01 (g) B1 13,337,500 10,736,688
Siderurgica Brasileiras SA inflation indexed 6%,
8/15/99 (f) - BRR 108,975,600 15,692,247
52,917,959
FOREIGN GOVERNMENT OBLIGATIONS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (A) (NOTE 1)
BULGARIA - 4.5%
Republic of Bulgaria Brady discount
7.5625%, 7/28/24 (g) - $ 15,000,000 $ 7,443,750
ECUADOR - 3.7%
Republic of Ecuador Brady:
discount 6 3/4%, 12/21/04 (e)(g) - 1,130,025 627,164
par euro 3%, 2/28/25 (e)(h) - 5,256,000 1,695,060
past due interest (i)(e) - 9,650,000 2,870,875
past due interest 7 1/4%, 2/28/15 (e) - 2,899,000 862,453
6,055,552
MEXICO - 4.4%
Mexican Government Brady
par 6 1/4%, 12/31/19 Ba3 12,000,000 7,290,000
Mexico Value Recovery (rights) (a) - 10,001,000 100
7,290,100
PANAMA - 1.1%
Republic of Panama euro 7 1/4%, 5/10/02 (g) - 2,500,000 1,900,000
POLAND - 4.2%
Polish Government Brady:
discount euro 7 1/8%, 10/27/24 (g) - 5,500,000 4,214,375
past due interest 3 1/4%, 10/27/14 (g) - 4,500,000 2,688,750
6,903,125
TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost $102,560,486) 110,990,389
COMMON STOCKS - 0.1%
SHARES
PHILIPPINES - 0.1%
International Container Terminal Services, Inc. (a)
(Cost $134,105) 232,786 161,784
PURCHASED BANK DEBT - 5.6%
PRINCIPAL
AMOUNT (B)
MOROCCO - 2.5%
Kingdom of Morocco loan participation
7 3/8%, 1/1/04 (g) $ 7,000,000 4,112,500
PURCHASED BANK DEBT - CONTINUED
PRINCIPAL VALUE
AMOUNT (B) (NOTE 1)
RUSSIA - 2.5%
Bank for Foreign Economic Affairs of
the USSR (Vnesheconombank) loan
participation (a) $ 12,500,000 $ 4,046,875
VIETNAM - 0.6%
Socialist Republic of Vietnam loans restructured
under 1985 agreement (a) DEM 2,500,000 1,088,078
TOTAL PURCHASED BANK DEBT
(Cost $9,290,143) 9,247,453
CERTIFICATES OF DEPOSIT - 3.6%
THAILAND - 3.6%
Bangkok Bank PCL:
12 1/2%, 10/26/95 THB 10,000,000 406,814
11 1/2%, 11/13/95 THB 20,000,000 811,614
Krung Thai Bank PCL 11%, 12/4/95 THB 75,000,000 3,039,315
Morgan Guaranty Trust Co. NY 0%, 7/17/95 THB 24,565,000 987,452
Thai Military Bank PCL 12 3/4%, 8/3/95 THB 15,000,000 608,325
TOTAL CERTIFICATES OF DEPOSIT
(Cost $5,865,374) 5,853,520
COMMERCIAL PAPER - 6.8%
CZECH REPUBLIC - 4.2%
Unilever NV:
0%, 7/3/95 CSK 15,000,000 579,865
0%, 7/5/95 CSK 60,000,000 2,318,064
0%, 7/12/95 CSK 20,000,000 770,986
0%, 7/25/95 CSK 35,000,000 1,343,948
0%, 8/16/95 CSK 25,000,000 953,385
0%, 9/15/95 CSK 25,000,000 944,778
6,911,026
INDONESIA - 2.0%
Indah Kiat Pulp and Paper PT:
0%, 7/24/95 (c) IDR 1,000,000 445,270
0%, 8/3/95 (c) IDR 1,000,000 443,070
Tjiwi Kimia Pabrik Kertas PT:
0%, 10/4/95 (c) IDR 4,600,000 1,977,540
0%, 11/2/95 (c) IDR 1,000,000 424,000
3,289,880
COMMERCIAL PAPER - CONTINUED
PRINCIPAL VALUE
AMOUNT (B) (NOTE 1)
THAILAND - 0.6%
Citibank Thailand 0%, 7/27/95 THB 25,000,000 $ 1,006,803
TOTAL COMMERCIAL PAPER
(Cost $11,182,019) 11,207,709
REPURCHASE AGREEMENTS - 12.4%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations), in a
joint trading account at 6.15%,
dated 6/30/95 due 7/3/95 $ 20,431,466 20,421,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $157,367,647) $ 164,546,955
FORWARD FOREIGN CURRENCY CONTRACTS
SETTLEMENT UNREALIZED
DATES VALUE GAIN/(LOSS)
CONTRACTS TO BUY
5,972,338 DEM 8/15/95 $ 4,331,264 $ (5,158)
57,402,375 JPY 8/15/95 682,490 (766)
TOTAL CONTRACTS TO BUY
(Payable amount $5,019,678) $ 5,013,754 (5,924)
THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 3.0%
CONTRACTS TO SELL
2,458,500 BRR 7/5/95 2,674,463 (174,463)
5,972,338 DEM 8/15/95 4,331,264 (156,264)
57,402,375 JPY 8/15/95 682,490 (6,663)
TOTAL CONTRACTS TO SELL-
(Receivable amount $7,350,827) $ 7,688,217 (337,390)
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 4.7%
$ (343,314)
CURRENCY ABBREVIATIONS
BRR - Brazilian real
CSK - Czech koruna
DEM - German deutsche mark
IDR - Indonesian rupiah
JPY - Japanese yen
THB - Thai baht
LEGEND
1. Non-income producing
2. Principal amount is stated in United States dollars unless otherwise
noted.
3. Principal amount in thousands.
4. Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
5. 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 $9,590,302 or 5.6% of net
assets.
6. Principal amount shown is original face amount and does not reflect the
inflation adjustments.
7. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
8. Debt obligation initially issued at one coupon which converts to a
higher coupon at a specified date.
9. Security purchased on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
10. Some foreign government obligations have not been individually rated by
S&P or Moody's. The ratings listed are assigned to securities by FMR, the
fund's investment adviser, based principally on S&P and Moody's ratings of
the sovereign credit of the issuing government.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 0.0% AAA, AA, A 0.0%
Baa 0.0% BBB 0.0%
Ba 4.3% BB 5.7%
B 24.8% 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 44.7% including long-term debt
categorized as other securities. FMR has determined that unrated debt
securities that are lower quality account for 21.6% of the total value of
investment in securities.
INCOME TAX INFORMATION
At June 30,1995, the aggregate cost of investment securities for income tax
purposes was $157,725,707. Net unrealized appreciation aggregated
$6,821,248 of which $10,294,263 related to appreciated investment
securities and $3,473,015 related to depreciated investment securities.
At December 31, 1994, the fund had a capital loss carryforward of
approximately $6,130,000 which will expire on December 31, 2002.
The fund has elected to defer to its fiscal year ending December 31, 1995
$6,577,000 of losses recognized during the period November 1, 1994 to
December 31, 1994.
INDUSTRY DIVERSIFICATION
As a Percentage of Total Value of Investment
in Securities (unaudited)
Basic Industries 2.1%
Finance 5.5
Government Obligations 67.4
Media & Leisure 1.6
Nondurables 4.2
Purchased Bank Debt 5.6
Repurchase Agreements 12.4
Technology 0.3
Utilities 0.9
100.0%
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JUNE 30, 1995 (UNAUDITED)

ASSETS

Investment in securities, at value (including repurchase $ 164,546,955
agreements of $20,421,000) (cost $157,367,647) -
See accompanying schedule

Cash 816

Receivable for investments sold 14,959,743
Regular delivery

Delayed delivery 213,733

Interest receivable 3,406,537

Redemption fees receivable 748

TOTAL ASSETS 183,128,532

LIABILITIES

Payable for investments purchased $ 6,479,995
Regular delivery

Delayed delivery 3,551,500

Unrealized depreciation on foreign currency contracts 343,314

Payable for closed foreign currency contracts 149,739

Payable for fund shares redeemed 337,024

Distributions payable 120,445

Accrued management fee 104,038

Other payables and accrued expenses 500,226

TOTAL LIABILITIES 11,586,281

NET ASSETS $ 171,542,251

Net Assets consist of:

Paid in capital $ 222,899,496

Distributions in excess of net investment income (170,912)

Accumulated undistributed net realized gain (loss) on (57,956,644)
investments and foreign currency transactions

Net unrealized appreciation (depreciation) on 6,770,311
investments and assets and liabilities in foreign
currencies

NET ASSETS, for 19,147,380 shares outstanding $ 171,542,251

NET ASSET VALUE, offering price and redemption price per $8.96
share ($171,542,251 (divided by) 19,147,380 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)

INVESTMENT INCOME $ 8,402,419
Interest

Less foreign taxes withheld (89,032)

TOTAL INCOME 8,313,387

EXPENSES

Management fee $ 560,008

Transfer agent 200,536
Fees

Redemption fees (10,635)

Accounting fees and expenses 48,230

Non-interested trustees' compensation 470

Custodian fees and expenses 84,892

Registration fees 50,153

Audit 27,031

Legal 465

Miscellaneous 4,088

Total expenses before reductions 965,238

Expense reductions (18,077) 947,161

NET INVESTMENT INCOME 7,366,226

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

Investment securities (42,937,280)

Foreign currency transactions (1,135,120) (44,072,400)

Change in net unrealized appreciation (depreciation) on:

Investment securities 23,071,608

Assets and liabilities in foreign currencies (536,099) 22,535,509

NET GAIN (LOSS) (21,536,891)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ (14,170,665)
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED DECEMBER 31,
JUNE 30, 1995 1994
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

Operations $ 7,366,226 $ 13,936,916
Net investment income

Net realized gain (loss) (44,072,400) (14,958,712)

Change in net unrealized appreciation (depreciation) 22,535,509 (36,994,200)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (14,170,665) (38,015,996)
FROM OPERATIONS

Distributions to shareholders (7,213,600) (11,818,195)
From net investment income

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

From net realized gain - (4,749,230)

TOTAL DISTRIBUTIONS (7,213,600) (17,846,833)

Share transactions 147,610,479 898,437,029
Net proceeds from sales of shares

Reinvestment of distributions 6,453,100 15,556,080

Cost of shares redeemed (140,528,305) (965,609,596)

Redemption fees 277,447 -

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 13,812,721 (51,616,487)
FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS (7,571,544) (107,479,316)

NET ASSETS

Beginning of period 179,113,795 286,593,111

End of period (including distributions in excess of net $ 171,542,251 $ 179,113,795
investment income of $170,912 and $323,538,
respectively)

OTHER INFORMATION
Shares

Sold 17,002,427 81,572,692

Issued in reinvestment of distributions 753,942 1,354,349

Redeemed (16,183,245) (87,272,908)

Net increase (decrease) 1,573,124 (4,345,867)

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C>
SIX MONTHS YEAR ENDED MAY 4, 1993
ENDED DECEMBER 31, (COMMENCEMENT
JUNE 30, 1995 1994 OF OPERATIONS) TO
(UNAUDITED) DECEMBER 31,
1993

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 10.190 $ 13.070 $ 10.000

Income from Investment Operations .398 .573 E .486 D
Net investment income

Net realized and unrealized gain (loss) (1.255) (2.687) 3.302

Total from investment operations (.857) (2.114) 3.788

Less Distributions (.388) (.529) G (.486)
From net investment income

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

From net realized gain on investments - (.180) G (.170)

Total distributions (.388) (.766) (.718)

Redemption fees added to paid in capital .015 - -

Net asset value, end of period $ 8.960 $ 10.190 $ 13.070

TOTAL RETURN B, C (7.99)% (16.55)% 38.84%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 171,542 $ 179,114 $ 286,593

Ratio of expenses to average net assets 1.20% 1.28% 1.24% A
A F

Ratio of expenses to average net assets 1.22% 1.50% 1.68% A
before expense reductions A F

Ratio of net investment income to average 9.33% 5.87% 6.29% A
net assets A

Portfolio turnover rate 218% 409% 324% A
A

</TABLE>

A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO
FINANCIAL STATEMENTS).
D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
E INCLUDES INTEREST EXPENSE OF $.008 PER SHARE.
F INCLUDES INTEREST EXPENSE OF .08% OF AVERAGE NET ASSETS
G THE AMOUNTS SHOWN REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO
TAX DIFFERENCES.
NOTES TO FINANCIAL STATEMENTS
For the period ended June 30, 1995 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity New Markets Income Fund (the fund) is a fund of Fidelity
Investment Trust (the trust) and is authorized to issue an unlimited number
of shares. The trust is registered under the Investment Company Act of
1940, as amended (the 1940 Act), as an open-end management investment
company organized as a Massachusetts business trust. The following
summarizes the significant accounting policies of the fund:
SECURITY VALUATION. Securities for which quotations are readily available
are valued at the last sale price, or if no sale price, at the closing bid
price in the principal market in which such securities are normally traded.
Securities (including restricted securities) for which quotations are not
readily available are valued primarily using dealer-supplied valuations or
at their fair value as determined in good faith under consistently applied
procedures under the general supervision of the Board of Trustees.
Short-term securities maturing within sixty days of their purchase date are
valued at amortized cost or original cost plus accrued interest, both of
which approximate current value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Purchases and
sales of securities, income receipts, and expense payments are translated
into U.S. dollars at the prevailing exchange rate on the respective dates
of the transactions.
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, the fund is not subject to U.S. federal
income taxes to the extent that it distributes substantially all of its
taxable income for its fiscal year. The fund may be subject to foreign
taxes on income, gains on investments or currency repatriation. The fund
accrues such taxes as applicable. The schedule of investments includes
information regarding income taxes under the caption "Income Tax
Information."
INVESTMENT INCOME. Interest income, which includes accretion of original
issue discount, is accrued as earned. Interest 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.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS.
Distributions are declared daily and paid monthly from net investment
income. Distributions from realized gains, if any, are recorded on the
ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences, which may result in distribution
reclassifications, are primarily due to differing treatments for futures
and options transactions, foreign currency transactions, market discount
and losses deferred due to wash sales, futures and options and excise tax
regulations.
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). Distributions in excess of net investment
income and accumulated undistributed net realized gain (loss) on
investments and foreign currency transactions may include temporary book
and tax basis differences that will reverse in a subsequent period. Any
taxable income or gain remaining at fiscal year end is distributed in the
following year.
REDEMPTION FEES. In November 1994, the Board of Trustees approved a 1.00%
redemption fee on shares held in the fund less than 180 days which is
effective for shares purchased after February 10,1995. A portion of the fee
is accounted for as a reduction of transfer agent expenses. This portion of
the redemption fee is used to offset the transaction costs and other
expenses that short-term trading imposes on the fund and its shareholders.
The remainder of the redemption fee is accounted for as an addition to paid
in capital.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
FORWARD FOREIGN CURRENCY CONTRACTS. The fund may use foreign currency
contracts to facilitate transactions in foreign securities and to manage
the fund's currency exposure. Contracts to buy generally are used to
acquire exposure to foreign currencies, while contracts to sell are used to
hedge the fund's investments against currency fluctuations. Also, a
contract to buy or sell can offset a previous contract. These contracts
involve market risk in excess of the unrealized gain or loss reflected in
the fund's Statement of Assets and Liabilities. The U.S. dollar value of
the currencies the fund has committed to buy or sell is shown in the
schedule of investments under the caption "Forward Foreign Currency
Contracts." This amount represents the aggregate exposure to each currency
the fund has acquired or hedged through currency contracts at period end.
Losses may arise from changes in the value of the foreign currency or if
the counterparties do not perform under the contracts' terms.
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. Contracts that have been offset with different
counterparties are reflected as both a contract to buy and a contract to
sell in the schedule of investments under the caption "Forward Foreign
Currency Contracts."
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other affiliated
entities of Fidelity Management & Research Company (FMR), may transfer
uninvested cash balances into one or more joint trading accounts. These
balances are invested in one or more repurchase agreements 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 fund, through its custodian, receives delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. FMR, the fund's
investment adviser, is
responsible for determining that the value of these underlying securities
remains at least equal to the resale price.
DELAYED DELIVERY TRANSACTIONS.
The fund may purchase or sell securities on a when-issued or forward
commitment basis. Payment and delivery may take place a month or more after
the date of the transaction. The price of the underlying securities is
fixed at the time the transaction is negotiated. The market value of the
securities purchased on a when-issued or forward commitment basis is
identified as such in the fund's schedule of investments. Losses may arise
due to changes in the market value of the underlying securities or if the
counterparty does not perform under the contract.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $137,015,637 and $164,608,427, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly
fee that is calculated on the basis of a group fee rate plus a fixed
individual fund fee rate applied to the average net assets of the fund. The
group fee rate is the weighted average of a series of rates and is based on
the monthly average net assets of all the mutual funds advised by FMR. The
rates ranged from .1200% to
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
MANAGEMENT FEE - CONTINUED
.3700% 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 .55%. For the period, the management
fee was equivalent to an annualized rate of .70% of average net assets.
SUB-ADVISER FEE. FMR, on behalf of the fund, entered into sub-advisory
agreements with affiliates of FMR. In addition, one of the sub-advisers,
Fidelity International Investment Advisors (FIIA), entered into a
sub-advisory agreement with its subsidiary, Fidelity International
Investment Advisors (U.K.) Limited (FIIAL U.K.). Under the sub-advisory
arrangements, FMR may receive investment advice and research services and
may grant the sub-advisers investment management authority to buy and sell
securities. FMR pays its sub-advisers either a portion of its management
fee or a fee based on costs incurred for these services. FIIA pays FIIAL
U.K. a fee based on costs incurred for either service.
DISTRIBUTION AND SERVICE PLAN.
Pursuant to the Distribution and Service Plan (the Plan), and in accordance
with Rule 12b-1 of the 1940 Act, FMR or the fund's distributor, Fidelity
Distributors Corporation (FDC), an affiliate of FMR,
may use their resources to pay administrative and promotional expenses
related to the sale of the fund's shares. Subject to the approval of the
Board of Trustees, the Plan also authorizes payments to third parties that
assist in the sale of the fund's shares or render shareholder support
services. No payments were made to third parties under the Plan during the
period.
TRANSFER AGENT FEES. Fidelity Service Co. (FSC), an affiliate of FMR, is
the fund's transfer, dividend disbursing and shareholder servicing agent.
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.
Under the prior transfer agent contract, FSC received fees based on the
type, size, number of accounts and the number of transactions made by
shareholders. FSC pays for typesetting, printing and mailing of all
shareholder reports, except proxy statements.
ACCOUNTING FEES. FSC maintains the fund's accounting records. The fee is
based on the level of average net assets for the month plus out-of-pocket
expenses.
5. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse the fund's operating expenses
(excluding interest, taxes, brokerage commissions and extraordinary
expenses) above an annual rate of 1.20% of average net assets. For the
period, the reimbursement reduced the expenses by $18,077.
6. CREDIT RISK.
The fund's relatively large investment in countries with limited or
developing capital markets may involve greater risks than investments in
more developed markets and the prices of such investments may be volatile.
The yields of emerging market debt obligations reflect, among other things,
perceived credit risk. The consequences of political, social or economic
changes in these markets may have disruptive effects on the market prices
of the fund's investments and the income they generate, as well as the
fund's ability to repatriate such amounts.
7. LITIGATION.
The fund is engaged in litigation against the obligor on the inflation
adjusted debt of Siderurgica Brasileiras SA, contesting the calculation of
the principal adjustment. The probability of success cannot be predicted
and the amount of recovery cannot be estimated. Any recovery from this
litigation would inure to the benefit of the fund.
TO CALL FIDELITY

If more than one address is listed, please locate the address that is
closest to you. We'll give your correspondence immediate attention and send
you written confirmation upon completion of your request.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
100 Crosby Parkway - KP2C
Covington, KY 41015-4399
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6I
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6R
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
TO VISIT FIDELITY

For directions and hours,
please call 1-800-544-9797.
ARIZONA
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Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
UTAH
215 South State Street
Salt Lake City, UT
VERMONT
199 Main Street
Burlington, VT
VIRGINIA
8180 Greensboro Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
1001 Fourth Avenue
Seattle, WA
WASHINGTON, DC
1775 K Street, N.W.
Washington, DC
WISCONSIN
222 East Wisconsin Avenue
Milwaukee, WI

INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
INVESTMENT SUB-ADVISERS
Fidelity Management & Research
(U.K.) Inc. London, England
Fidelity Management & Research
(Far East) Inc. Tokyo, Japan
Fidelity International Investment
Advisors
Fidelity International Investment
Advisors (U.K.) Limited
Fidelity Investments Japan Limited
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Arthur S. Loring, Secretary
Stephen P. Jonas, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
CUSTODIAN
Chase Manhattan Bank, N.A.
New York, NY
FIDELITY'S TAXABLE BOND FUNDS
Capital & Income Fund
Ginnie Mae Portfolio
Global Bond Fund
Government Securities Fund
Intermediate Bond Fund
Investment Grade Bond Fund
Mortgage Securities Portfolio
New Markets Income Fund
Short-Intermediate Government Fund
Short-Term Bond Portfolio
Short-Term World Income Fund
Spartan(registered trademark) Ginnie Mae Fund
Spartan Government Income Fund
Spartan High Income Fund
Spartan Investment Grade Bond Fund
Spartan Limited Maturity
Government Fund
Spartan Long-Term Government
Bond Fund
Spartan Short-Intermediate
Government Fund
Spartan Short-Term Income Fund
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
(registered trademark)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE

(2_FIDELITY_LOGOS)FIDELITY

GLOBAL BOND
FUND
SEMIANNUAL REPORT
JUNE 30, 1995
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

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

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

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

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

NOTES 24 Notes to the financial statements.

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE
PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY,
ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, THE
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL
1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST
OR SEND MONEY.
PRESIDENT'S MESSAGE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each figure
includes changes in a fund's share price, as well as reinvestment of any
dividends (or income) and capital gains (the profits the fund earns when it
sells bonds that have grown in value). You can also look at the fund's
dividends and yields.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JUNE 30, 1995 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

Global Bond 5.20% 5.21% 37.52% 90.05%

Salomon Brothers World Government
Bond Index 16.85% 18.79% 83.76% n/a

Average General World Income Fund 10.15% 10.61% 53.00% n/a

Consumer Price Index 1.87% 3.04% 17.40% 38.01%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, five years or since
the fund started on December 30, 1986. For example, if you 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 Salomon Brothers World Government Bond Index - a widely
used world government bond indicator. To measure how the fund's performance
stacked up against its peers, you can compare it to the average general
world income fund, which reflects the performance of 154 funds with similar
objectives tracked by Lipper Analytical Services over the past six months.
Both benchmarks include reinvested dividends and capital gains, if any, and
exclude sales charges. Comparing the fund's performance to the consumer
price index (CPI) helps show how your fund did compared to inflation. (The
CPI returns begin on the month end closest to the fund's start date.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JUNE 30, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Global Bond 5.21% 6.58% 7.84%

Salomon Brothers World Government
Bond Index 18.79% 12.94% n/a

Average General World Income Fund 10.61% 8.82% n/a

Consumer Price Index 3.04% 3.26% 3.86%

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
Global Bond Fund (451)Salomon Brothers World Go
12/31/86 10000.00 10000.00
01/31/87 10311.24 10300.00
02/28/87 10451.57 10460.68
03/31/87 10698.66 10702.32
04/30/87 10786.19 10825.40
05/31/87 10625.67 10718.23
06/30/87 10585.27 10632.48
07/31/87 10339.13 10419.83
08/31/87 10556.94 10577.17
09/30/87 10392.69 10279.95
10/31/87 10975.54 10972.82
11/30/87 11449.59 11354.68
12/31/87 11913.69 11840.66
01/31/88 11584.23 11776.72
02/29/88 11669.26 11879.17
03/31/88 11956.20 12091.81
04/30/88 11945.58 12032.56
05/31/88 11892.44 11919.45
06/30/88 11764.91 11659.61
07/31/88 11775.53 11588.49
08/31/88 11690.51 11458.70
09/30/88 11828.67 11754.33
10/31/88 12190.02 12297.38
11/30/88 12413.20 12485.53
12/31/88 12350.32 12358.18
01/31/89 12315.76 12177.75
02/28/89 12212.07 12186.27
03/31/89 12177.51 12016.88
04/30/89 12338.80 12175.51
05/31/89 12131.43 11918.60
06/30/89 12384.89 12158.17
07/31/89 12788.12 12712.58
08/31/89 12603.78 12285.44
09/30/89 12753.55 12517.63
10/31/89 12926.37 12622.78
11/30/89 13064.62 12737.65
12/31/89 13329.59 12894.32
01/31/90 13293.50 12724.12
02/28/90 13125.08 12528.16
03/31/90 13281.47 12404.14
04/30/90 13281.47 12365.68
05/31/90 13461.93 12777.46
06/30/90 13750.66 13012.56
07/31/90 14231.87 13419.86
08/31/90 14147.66 13315.18
09/30/90 14328.11 13462.98
10/31/90 14664.96 14064.78
11/30/90 14821.35 14298.25
12/31/90 14966.02 14439.80
01/31/91 15294.80 14800.80
02/28/91 15439.46 14805.24
03/31/91 15229.04 14267.81
04/30/91 15439.46 14487.53
05/31/91 15623.57 14468.70
06/30/91 15439.46 14318.23
07/31/91 15597.48 14624.64
08/31/91 15744.37 14908.35
09/30/91 16105.47 15491.27
10/31/91 16323.48 15653.93
11/30/91 16241.73 15899.70
12/31/91 16877.42 16726.48
01/31/92 16707.23 16430.42
02/29/92 16778.14 16338.41
03/31/92 16749.97 16165.22
04/30/92 16977.66 16280.00
05/31/92 17290.75 16779.79
06/30/92 17505.10 17249.63
07/31/92 17767.43 17651.54
08/31/92 18025.90 18145.79
09/30/92 17774.98 18327.24
10/31/92 17659.43 17828.74
11/30/92 17394.30 17545.27
12/31/92 17619.52 17650.54
01/31/93 17823.07 17959.42
02/28/93 18097.52 18313.22
03/31/93 18496.21 18595.25
04/30/93 18672.10 18987.61
05/31/93 19015.32 19177.48
06/30/93 19397.07 19137.21
07/31/93 19692.25 19190.79
08/31/93 20189.71 19768.44
09/30/93 20304.78 20003.68
10/31/93 20830.76 19969.67
11/30/93 20764.44 19827.89
12/31/93 21479.33 19996.43
01/31/94 21713.86 20156.40
02/28/94 20531.66 20025.38
03/31/94 19053.47 19997.35
04/30/94 18678.26 20019.34
05/31/94 18782.43 19843.17
06/30/94 17973.21 20128.91
07/31/94 18300.43 20289.95
08/31/94 18527.75 20218.93
09/30/94 18528.69 20364.51
10/31/94 18613.12 20690.34
11/30/94 18690.13 20404.81
12/31/94 17975.74 20461.95
01/31/95 17818.85 20891.65
02/28/95 17768.50 21426.47
03/31/95 17884.41 22699.21
04/30/95 18186.00 23119.14
05/31/95 18734.45 23771.10
06/30/95 18909.95 23911.35

$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity
Global Bond Fund on December 31, 1986, shortly after the fund started. As
the chart shows, by June 30, 1995, the value of your investment would have
grown to $18,910 - a 89.10% increase on your initial investment. For
comparison, look at how the Salomon Brothers World Government Bond Index
did over the same period. With dividends reinvested, the same $10,000 would
have grown to $23,911 - a 139.11% 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.
(checkmark)
DIVIDENDS AND YIELD
PERIODS ENDED JUNE 30, 1995 PAST PAST 6 PAST 1
MONTH MONTHS YEAR A

Dividends per share 4.42(cents) 28.23(cents) 64.26(cents)

Annualized dividend rate 5.32% 5.81% 6.39%

30-day annualized yield 4.91% - -

DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on the fund's average share price of
$10.10 over the past month, $9.79 over the past six months and $10.06 over
the past year, you can compare the fund's income over these three periods.
The 30-day annualized YIELD is a standard formula for all funds based on
the yields of the bonds in the fund, averaged over the past 30 days. This
figure shows you the yield characteristics of the fund's investments at the
end of the period. It also helps you compare funds from different companies
on an equal basis. It does not reflect the cost of hedging and other
currency gains and losses.
A DIVIDENDS PAID ARE BASED ON THE FUND'S INVESTMENT INCOME AND DO NOT
REFLECT CURRENCY-RELATED LOSSES. AS A RESULT OF CURRENCY LOSSES, DIVIDENDS
PAID DURING 1994 OF APPROXIMATELY 41.1(CENTS) PER SHARE WERE A NON-TAXABLE
RETURN OF CAPITAL.
FUND TALK: THE MANAGER'S OVERVIEW

An interview with Jonathan Kelly, Portfolio Manager of Fidelity Global Bond
Fund
Q. JONATHAN, HOW DID THE FUND PERFORM?
A. For the six months ended June 30, 1995, the fund had a total return of
5.20%. During the same period, the average general world income fund
tracked by Lipper Analytical Services returned 10.15%, and the Salomon
Brothers World Government Bond Index had a return of 16.85%. For the 12
months ended June 30, the fund had a total return of 5.21%, while the
average general world income fund returned 10.61%, and the index returned
18.79% during the same period.
Q. WHAT ACCOUNTED FOR THE FUND'S RELATIVE PERFORMANCE OVER THE PAST SIX
MONTHS?
A. I'd like to tackle the first quarter and second quarter separately. In
the first quarter, the fund was plagued by the two problems that held it
back in 1994: specifically, emerging market debt exposure and currency
exposure that was mostly hedged. The Mexican peso devaluation in December
1994 created significant turmoil in emerging markets that lasted for much
of the first quarter. In addition, the U.S. dollar continued its slide
against both European currencies and the Japanese yen. Given the turmoil in
Latin America, emerging market exposure was reduced to 3% of the fund as of
June 30, with no plans to increase that exposure in the near future.
Q. DOES THIS MEAN THAT THE FUND NO LONGER WILL INVEST IN EMERGING MARKETS?
A. The fund historically has invested mainly in investment-grade
securities. A key premise to the fund's investments in emerging markets was
the assumption that Mexico - seen as a bellwether for the Latin American
emerging markets - was transforming itself through economic and political
reform from a non-investment-grade to an investment-grade entity. The
events of the past year suggest that this may not be the case at the
present time. I am not saying that the fund will never invest in emerging
markets again; but in order to invest there, I will need to be convinced
that the key bellwether countries are once again solidly on the path to
investment-grade status.
Q. WAS THERE ANYTHING ELSE THAT AFFECTED PERFORMANCE IN THE FIRST QUARTER?
A. During the first quarter, I was hedging much of the fund's foreign
currency exposure. That is, I used investments called foreign forward
currency contracts to try to control currency risk - the risk that
depreciation in the currency of the country in which an investment is made
will reduce returns from those investments. As the dollar depreciated
instead during the first quarter - the main risk associated with foreign
forward currency contracts, because it makes investments in them
unprofitable - the fund missed an opportunity to add value through foreign
currency gains. That's because - all else being equal - foreign investments
increase in value for American investors when the dollar depreciates versus
local currencies.
Q. WHAT HAPPENED IN THE SECOND QUARTER?
A. The fund performed better. Global bond markets performed exceptionally
well, with interest rates generally falling as most economies around the
world slowed down. The fund also was helped somewhat by the fact that I
moved away from hedging the fund's foreign investments. In Japan,
specifically, the fund benefited from the depreciation of the dollar versus
the yen, as well as from sharply falling interest rates. Going forward,
I'll be measuring the fund's performance more closely against the Salomon
Brothers World Government Bond Index. My goal will continue to be to
generate returns that are better than the global market as a whole, while
attempting to dampen relative volatility. The index - which is a
representation of the global bond market - is unhedged and does not have an
emerging markets component. Overall, the shifts in strategy provided
favorable returns in the second quarter.
Q. HOW WILL YOU SEEK TO ADD VALUE USING THIS NEW APPROACH?
A. The best way to describe my strategy would be that rather than basing
the fund's structure on where markets are going, I'm going to let the
markets come to me. By that I mean that I'm not going to try to predict
currency movements or the direction of interest rates. Rather, I'm going to
look for opportunities that present themselves in the marketplace, looking
to buy assets that are undervalued and sell those that have become rich -
or priced high in light of historical levels. The government bond market in
the U.S. is the most liquid and efficient in the world; at the same time,
there are a lot of markets in economically developed countries that are
still somewhat inefficient. That is, from time to time opportunities arise
to buy or sell securities that are temporarily under-priced or over-priced.
I'll seek to take advantage of this through opportunistic trading; that's
what I mean by letting markets come to me, instead of trying to dictate
strategy by predicting where markets are going. In addition, I will
continue to leverage Fidelity's worldwide analyst network to explore
corporate bond opportunities.
Q. WHAT OTHER MOVES HAVE YOU MADE IN TERMS OF COUNTRY WEIGHTING AND
CURRENCY EXPOSURE, JONATHAN?
A. I've been adjusting the fund's structure to better reflect the major
composition of the marketplace. I've reduced exposure to New Zealand,
taking profits after investments there worked well. I've also increased
exposure to Japan, because the Japanese market is the second-largest bond
market worldwide. I'm seeking to align the portfolio to what's going on in
the market, attempting to outperform it by looking for individual
securities or sectors that I feel will perform well.
Q. WHAT'S YOUR OUTLOOK?
A. In general, I'm cautious on global bond markets. The first six months of
1995 - with interest rates on the decline - has been a very good period for
bonds. I believe we would be hard-pressed to have interest rates come down
as much in the second half. At the same time, the outlook is still pretty
good, because global growth - which was particularly strong in 1994 - has
slowed considerably. A slowdown in growth is good for bond markets because
strong growth sparks inflation, which erodes the value of a bond's fixed
payments. The Federal Reserve Board reduced interest rates by 0.25% shortly
after the period, European economies are sluggish and Japan's economy is
not growing and prices there are deflating; all of these are indications
that bonds might perform well. I think the fundamental backdrop for global
bonds is positive, but, again, I think we would be hard-pressed to
duplicate the drop in interest rates we saw in the first half.
FUND FACTS
GOAL: high total return by
investing in debt securities
from around the world
START DATE: December 30,
1986
SIZE: as of June 30, 1995,
more than $277 million
MANAGER: Jonathan Kelly,
since October 1993; Fidelity
Advisor Emerging Markets
Fund and Fidelity New
Markets Income Fund,
January 1995 to June 1995;
joined Fidelity in 1991
(checkmark)
JONATHAN KELLY ON THE SHIFT IN
STRATEGY FOR FIDELITY GLOBAL
BOND FUND:
"The fund's shift in strategy
increases the relative quality
of its holdings while
attempting to decrease
volatility. To do that, I've
begun to manage the fund
relative to the opportunities
found in the global market for
developed country debt. This
strategy is designed to help
the fund exceed the
performance of the broad
market by utilizing
research-driven investment
ideas that I believe have a
high probability of success. I
also feel confident that
returns will be more
consistent with the overall
performance of the market
than in the past. I'll seek to
outperform by exploiting
anomalies and inefficiencies
in the market by using
Fidelity's quantitative
research capabilities.
"While the fund is still mainly
invested in government
issues, it does have a
meaningful stake in corporate
bonds, especially in the U.S.,
the U.K. and Canada. One of
the strengths of Fidelity is a
firm research commitment.
While Fidelity's U.S.
corporate research is
well-known, we also have a
worldwide research presence.
I am working to tap that
network to help with "bottom
up" investing: choosing
corporate securities one by
one by using the research to
discern an issuer's ability to
meet its obligations."
INVESTMENT CHANGES

United States 34 39

Germany 13 6

France 7 4

Netherlands 7 1

Austria 5 0

TOP COUNTRIES ARE BASED ON THE LOCATION OF THE ISSUER OF EACH SECURITY,
INDICATING WHERE THE FUND IS EXPOSED
TO POLITICAL AND CREDIT RISKS. THE FUND'S LARGEST POSITION AS OF JUNE 30
WAS IN SECURITIES OF UNITED STATES ISSUERS.
TOP INTEREST RATE EXPOSURES AS OF JUNE 30, 1995
(ESTIMATED, BY COUNTRY) % OF FUND'S TOTAL % OF INTEREST RATE
INTEREST RATE EXPOSURE EXPOSURE SIX MONTHS
AGO

United States 33 22

Japan 23 8

Germany 11 18

France 7 13

United Kingdom 6 8

FIDELITY ESTIMATES INTEREST RATE EXPOSURES BASED ON THE DURATION, OR
INTEREST RATE SENSITIVITY, OF THE FUND'S HOLDINGS. AS OF JUNE 30, THE FUND
WAS MOST SENSITIVE TO INTEREST RATE MOVEMENTS IN THE U.S., WHICH ACCOUNTED
FOR APPROXIMATELY 33% OF THE FUND'S INTEREST RATE EXPOSURE.
TOP CURRENCY EXPOSURES AS OF JUNE 30, 1995
(ESTIMATED, BY CURRENCY) % OF FUND'S % OF NET ASSETS
NET ASSETS SIX MONTHS AGO

U.S. dollar 35 74

Japanese yen 23 0

German deutsche mark 8 0

French franc 7 0

Dutch guilder 6 0

THE U.S. DOLLAR EXPOSURE ABOVE INCLUDES THE EFFECTS OF FOREIGN INVESTMENTS
WHOSE CURRENCY RISK IS FULLY HEDGED. THE JAPANESE YEN, AT APPROXIMATELY 23%
OF ASSETS, WAS THE FUND'S LARGEST FOREIGN CURRENCY EXPOSURE AS OF JUNE 30.
INVESTMENTS JUNE 30, 1995 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

NONCONVERTIBLE BONDS - 18.1%
MOODY'S RATINGS (B) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (A) (NOTE 1)
ARGENTINA - 1.2%
Alto Parana:
euro 12%, 3/4/05 (h) - $ 1,610,000 $ 1,127,000
12%, 3/4/05 (g)(h) - 3,000,000 2,100,000
3,227,000
CANADA - 1.8%
Canada Mortgage & Housing 8.8%, 3/1/00 Aa1 CAD 2,550,000 1,938,000
Ford Credit Canada Ltd. 8 3/4%, 3/20/00 - CAD 2,100,000 1,547,344
Ontario Hydro euro 9%, 6/24/02 Aa2 CAD 1,652,000 1,259,612
4,744,956
GERMANY - 4.7%
Deutsche Bank Finance NV 4 1/8%, 11/15/99 (b) Aaa JPY 810,000 10,377,396
Lake Baden Wuerttemberg Finance
NV euro 3 3/4%, 6/21/99 (b) Aaa JPY 190,000 2,398,294
12,775,690
MEXICO - 0.3%
First Mexican Acceptance Corp. SA
euro 10 3/4%, 9/15/96 - 1,500,000 675,000
NETHERLANDS - 0.2%
Cable & Wireless International Finance
euro 8 5/8%, 3/25/19 A2 GBP 300,000 446,253
NETHERLANDS ANTILLES - 0.2%
Deutsche Bank Finance NV 10 1/4%, 2/24/97 Aaa SEK 3,600,000 492,634
UNITED KINGDOM - 2.1%
Anglian Water PLC 12%, 1/7/14 Aa3 GBP 170,000 332,461
Argyll Group PLC 8 1/8%, 3/10/00 - GBP 200,000 307,739
ASDA Group PLC 10 7/8%, 4/20/10 Baa1 GBP 200,000 346,198
British Gas PLC 8 7/8%, 7/8/08 Aa2 GBP 335,000 522,620
East Midlands Electricity PLC 12%, 3/25/16 Aa2 GBP 200,000 399,323
Eastern Electricity PLC 8 3/8%, 3/31/04 Aa1 GBP 250,000 381,310
Ford Credit Europe PLC:
euro 8 5/8%, 11/21/97 A1 GBP 200,000 318,422
11.70%, 11/18/98 (b) A1 ITL 1,185,000 725,339
Lloyds Bank PLC 7 3/8%, 3/11/04 Aa3 GBP 250,000 350,033
Pearson PLC 10 1/2%, 6/13/08 - GBP 250,000 433,664
NONCONVERTIBLE BONDS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (A) (NOTE 1)
UNITED KINGDOM - CONTINUED
Rolls-Royce PLC 11 5/8%, 7/30/98 A3 GBP 250,000 $ 430,236
Royal Insurance Holdings PLC 9 5/8%, 3/25/03 - GBP 200,000 315,520
Severn Trent PLC 11 1/2%, 7/12/99 A1 GBP 235,000 407,494
Tesco PLC 8 3/4%, 2/20/03 Aa3 GBP 250,000 389,457
5,659,816
UNITED STATES OF AMERICA - 7.6%
Bank of Boston Corp. 9 1/2%, 8/15/97 Baa2 320,000 338,400
CIT Group Holdings, Inc. 6 5/8%, 6/15/05 Aa3 730,000 716,699
Chrysler Financial Corp.:
euro 9 1/2%, 4/12/96 BBB+ 150,000 153,225
10.34%, 5/15/08 A3 1,000,000 1,032,250
Comdisco, Inc. 6 1/2%, 6/15/00 Baa2 600,000 593,256
Continental Bank Mortgage Corp.
9 7/8%, 6/15/96 A2 190,000 195,231
Discover Card Trust:
7 1/5%, 4/16/98 Aaa 166,667 167,083
6 1/8%, 5/15/98 A2 170,000 169,415
First Bank Systems, Inc. 9.89%, 3/6/96 A3 140,000 143,589
Ford Credit Auto Loan Master Trust:
5 5/8%, 10/15/95 Aaa 295,000 294,558
7 3/8%, 4/15/99 Aaa 230,000 233,795
Ford Motor Credit Co. 9 1/2%, 4/15/00 A1 250,000 278,500
General Electric Capital Corp.:
8%, 10/29/98 (b) AAA ITL 500,000 277,462
7 3/8%, 2/8/99 (b) Aaa ITL 9,435,000 5,094,062
6 1/2%, 2/8/99 Aaa SEK 6,250,000 749,683
9.55%, 8/25/03 (b) Aaa ITL 2,800,000 1,511,751
Golden West Financial Corp. 9.15%, 5/23/98 A3 150,000 160,881
Green Tree Securitized Net Interest Margin Trust
6.90%, 2/15/04 Baa3 171,304 168,948
Gulf States Utilities Co. 9.72%, 7/1/98 Ba1 350,000 368,022
Long Island Lighting Co.:
8 3/4%, 5/1/96 Baa3 290,000 295,075
7.3%, 7/15/99 Ba1 175,000 171,952
MBNA Master Credit Card Trust
7 1/4%, 6/15/99 Aaa 390,000 395,725
Manufacturers Hanover Corp. 8 1/2%, 2/15/99 A3 130,000 137,535
Meridian Bancorp, Inc. 6.1875%, 12/1/96 (i) Baa1 445,000 442,855
Morgan Guaranty Trust Co. NY 11 3/8%,
10/6/97 (b) Aa1 ITL 4,000,000 2,423,600
NONCONVERTIBLE BONDS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (A) (NOTE 1)
UNITED STATES OF AMERICA - CONTINUED
North Atlantic Energy Corp. 9.05%, 6/1/02 Ba1 $ 170,000 $ 174,080
Premier Auto Trust 4.90%, 12/15/98 Aaa 332,211 328,111
Public Service Co. of New Hampshire 1st mtg.
8 7/8%, 5/15/96 Baa3 430,000 437,826
Ralcorp Holdings, Inc. 8 3/4%, 9/15/04 Ba1 135,000 145,463
Shawmut Corp. 8 1/8%, 2/1/97 Baa1 370,000 379,494
Standard Credit Card Master Trust I:
6 1/8%, 8/7/95 A2 260,000 260,000
9%, 8/7/97 A2 360,000 370,575
6 1/4%, 9/7/98 A2 650,000 647,969
5 1/2%, 9/7/98 A2 85,000 83,539
Texas Gas Transmission Corp. 8 5/8%, 4/1/04 Baa1 110,000 122,051
Transcontinental Gas Pipe Line Corp.:
9%, 11/15/96 Baa1 750,000 775,328
8.875%, 9/15/02 Baa1 90,000 98,555
Valassis Inserts, Inc. 9 3/8%, 3/15/99 Ba2 290,000 301,238
20,637,781
TOTAL NONCONVERTIBLE BONDS
(Cost $49,789,657) 48,659,130
GOVERNMENT OBLIGATIONS - 64.8% (D)
ARGENTINA - 1.7%
Province of Chaco 11 7/8%, 9/10/97 (f) - 4,500,000 4,591,350
AUSTRALIA - 0.9%
Commonwealth of Australia:
7%, 8/15/98 Aa2 AUD 1,300,000 892,233
12%, 11/15/01 Aa2 AUD 425,000 346,869
9 1/2%, 8/15/03 Aa2 AUD 1,500,000 1,089,027
2,328,129
AUSTRIA - 5.4%
Republic of Austria euro:
11%, 12/16/97 (b) Aaa ITL 4,200,000 2,558,480
4 1/2%, 9/28/05 (b) Aaa JPY 900,000 12,014,190
14,572,670
GOVERNMENT OBLIGATIONS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (A) (NOTE 1)
BELGIUM - 2.5%
Kingdom of Belgium:
9 1/4%, 8/29/97 AAA BEF 67,000,000 $ 2,515,334
8 3/4%, 6/25/02 Aa1 BEF 37,000,000 1,411,602
7 1/2%, 7/29/08 AAA BEF 85,000,000 2,891,496
6,818,432
CANADA - 1.0%
Manitoba Province 9 3/8%, 11/15/04 A1 CAD 1,331,000 1,041,041
Ontario Province 7 3/4%, 12/8/03 Aa2 CAD 2,629,000 1,856,103
2,897,144
DENMARK - 1.4%
Danish Government:
9%, 11/15/98 Aa1 DKK 7,200,000 1,383,255
Bullet 9%, 11/15/00 Aa1 DKK 4,800,000 923,950
Bullet 8%, 5/15/03 Aa1 DKK 2,500,000 450,626
8%, 3/15/06 Aaa DKK 6,000,000 1,060,361
3,818,192
FRANCE - 6.9%
French Government:
OAT 9 1/2%, 1/25/01 Aaa FRF 21,850,000 4,995,961
OAT 7 3/4%, 10/25/05 Aaa FRF 3,400,000 707,318
OAT 8 1/2%, 10/25/19 Aaa FRF 9,750,000 2,086,337
8 1/2%, 12/26/12 Aaa FRF 26,000,000 5,631,231
BTF 0%, 7/27/95 Aaa FRF 25,000,000 5,139,420
18,560,267
GERMANY - 8.5%
Federal Republic of Germany:
8 3/8%, 5/21/01 Aaa DEM 13,550,000 10,605,968
8 3/4%, 8/20/01 Aaa DEM 7,800,000 6,204,654
6%, 6/20/16 Aaa DEM 10,000,000 6,063,194
22,873,816
NETHERLANDS - 6.4%
Netherland Government:
6 1/4%, 7/15/98 Aaa NLG 17,500,000 11,445,047
7%, 6/15/05 Aaa NLG 2,500,000 1,610,131
8 1/4%, 2/15/07 AAA NLG 5,900,000 4,116,696
17,171,874
GOVERNMENT OBLIGATIONS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (A) (NOTE 1)
SPAIN - 1.9%
Kingdom of Spain:
7.30%, 7/30/97 (b) AAA ESP 121,000 $ 934,737
7.4%, 7/30/99 (b) - ESP 51,000 365,690
10.30%, 6/15/02 (b) Aa2 ESP 500,000 3,854,254
5,154,681
SWEDEN - 0.7%
Kingdom of Sweden 10 1/4%, 5/5/03 Aa1 SEK 15,000,000 1,997,261
UNITED KINGDOM - 3.3%
United Kingdom, Great Britain & Northern Ireland:
13 1/4%, 1/22/97 Aaa GBP 350,000 604,465
12%, 11/20/98 Aaa GBP 560,000 995,606
9 3/4%, 8/27/02 Aaa GBP 2,060,000 3,512,544
13 1/2%, 3/26/08 Aaa GBP 720,000 1,491,017
9%, 10/13/08 Aaa GBP 500,000 829,140
8 3/4%, 8/25/17 Aaa GBP 900,000 1,474,514
8,907,286
UNITED STATES OF AMERICA - 24.2%
Federal Home Loan Bank:
4 3/4%, 2/24/97 (callable) Aaa 210,000 204,288
4.55%, 8/3/98 (callable) (e) Aaa 220,000 211,860
5.60%, 2/23/99 (callable) Aaa 260,000 252,525
Federal National Mortgage Association:
4.70%, 9/10/98 (callable) Aaa 500,000 478,184
4 7/8%, 10/15/98 (callable) Aaa 160,000 153,644
5.20%, 7/10/98 (callable) Aaa 360,000 349,988
Government Trust Certificates:
(assets of Trust guaranteed by U.S. Government
through Defense Security Assistance Agency):
Class 2-D 9 1/4%, 11/15/96 Aaa 263,856 269,714
Class 1-C 9 1/4%, 11/15/01 Aaa 790,000 870,201
Class 2-E 9.40%, 5/15/02 Aaa 280,000 309,674
Series 1994-F (assets of Trust guaranteed by U.S.
Government through Export-Import Bank)
8.178%, 12/15/04 Aaa 450,283 479,676
GOVERNMENT OBLIGATIONS - CONTINUED
MOODY'S RATINGS (B) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (A) (NOTE 1)
UNITED STATES OF AMERICA - CONTINUED
State of Israel (guaranteed by U.S. Government
through Agency for International Development):
6%, 2/15/99 Aaa $ 170,000 $ 169,115
8%, 11/15/01 Aaa 180,000 194,780
6 1/8%, 3/15/03 Aaa 100,000 98,188
Private Export Funding Corp. 8 3/4%, 6/30/03 Aaa 200,000 228,141
U.S. Treasury
5 5/8%, 1/31/98 Aaa 11,000,000 10,926,080
5 1/8%, 6/30/98 Aaa 870,000 851,373
4 3/4%, 8/31/98 Aaa 1,790,000 1,728,460
6 3/4%, 6/30/99 Aaa 3,120,000 3,200,434
7 1/8%, 9/30/99 Aaa 910,000 947,538
7 3/4%, 12/31/99 Aaa 230,000 245,562
7 1/2%, 11/15/01 Aaa 1,350,000 1,449,144
6 1/4%, 2/15/03 Aaa 5,140,000 5,153,672
10 3/4%, 5/15/03 Aaa 590,000 754,185
11 7/8%, 11/15/03 Aaa 3,670,000 5,000,962
12 3/8%, 5/15/04 Aaa 8,480,000 11,963,414
7 7/8%, 11/15/04 Aaa 130,000 144,788
11 5/8%, 11/15/04 Aaa 5,423,000 7,454,944
8 3/4%, 5/15/20 Aaa 9,100,000 11,291,098
65,381,632
TOTAL GOVERNMENT OBLIGATIONS
(Cost $170,923,292) 175,072,734
SUPRANATIONAL OBLIGATIONS - 15.4%
African Development Bank 9 1/2%, 12/15/95 Aa1 250,000 253,745
European Investment Bank EIB:
4 1/4%, 7/16/98 (b) Aaa JPY 250,000 3,191,081
5 7/8%, 11/26/99 (b) Aaa JPY 145,000 1,993,857
InterAmerica Development Bank euro:
6%, 10/30/01 (b) Aaa JPY 342,000 4,844,977
7.7%, 2/3/04 (b) Aaa ITL 5,080,000 2,443,988
International Bank for Reconstruction & Development:
4 1/2%, 12/22/97 (b) Aaa JPY 1,615,000 20,562,870
4 3/4%, 1/15/04 (b) Aaa JPY 600,000 8,197,282
TOTAL SUPRANATIONAL OBLIGATIONS
(Cost $39,858,573) 41,487,800
REPURCHASE AGREEMENTS - 1.7%
MATURITY VALUE
AMOUNT (NOTE 1)
Investments in repurchase agreements
(U.S. Treasury obligations), in a
joint trading account at 6.15%,
dated 6/30/95 due 7/3/95 $ 4,624,369 $ 4,622,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $265,193,522) $ 269,841,664
FORWARD FOREIGN CURRENCY CONTRACTS
SETTLEMENT UNREALIZED
DATE VALUE GAIN/(LOSS)
CONTRACTS TO BUY
11,400,000,000 IDR 7/3/95 $ 5,118,952 $ 118,952
39,155,400 JPY 8/2/95 464,773 28,778
TOTAL CONTRACTS TO BUY
(Payable amount $5,435,995) $ 5,583,725 147,730
THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 2.1%
CONTRACTS TO SELL
11,400,000,000 IDR 7/3/95 $ 5,118,952 $ (115,112)
39,155,400 JPY 8/2/95 464,773 (59,772)
TOTAL CONTRACTS TO SELL
(Receivable amount $5,408,841) $ 5,583,725 (174,884)
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 2.1%
$ (27,154)
CURRENCY ABBREVIATIONS
AUD - Australian dollar
BEF - Belgian franc
GBP - British pound
CAD - Canadian dollar
DKK - Danish krone
NLG - Dutch guilder
FRF - French franc
DEM - German deutsche mark
IDR - Indonesian rupiah
ITL - Italian lira
JPY - Japanese yen
ESP - Spanish peseta
SEK - Swedish krona
LEGEND
1. Principal amount is stated in United States dollars unless otherwise
noted.
2. Principal amount in thousands.
3. Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
4. 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.
5. Debt obligation initially issued at one coupon which converts to a
higher coupon at a specified date.
6. Restricted securities - Investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on each holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
Province of Chaco
11 7/8%, 9/10/97 3/9/94 $ 5,547,749
7. Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $2,100,000 or 0.8% of net
assets.
8. Partial interest payment received on the last interest payment date.
9. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
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 86.2% AAA, AA, A 80.5%
Baa 1.5% BBB 1.2%
Ba 0.4% BB 0.5%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
For some foreign government obligations, FMR has assigned the ratings of
the sovereign credit of the issuing government. The percentage not rated by
either S&P or Moody's amounted to 4.2% including long-term debt categorized
as other securities.
INCOME TAX INFORMATION
At June 30, the aggregate cost of investment securities for income tax
purposes was $265,193,522. Net unrealized appreciation aggregated
$4,648,142, of which $7,535,880 related to appreciated investment
securities and $2,887,738 related to depreciated investment securities.
At December 31, 1994, the fund had a capital loss carryforward of
approximately $81,884,000 all of which will expire on December 31, 2002.
The fund has elected to defer to its fiscal year ending December 31, 1995
$4,205,000 of losses recognized during the period November 1, 1994 to
December 31, 1994.
MARKET SECTOR DIVERSIFICATION
As a Percentage of Total Value of Investments
in Securities (Unaudited)
Aerospace & Defense 0.2%
Basic Industries 1.2
Finance 12.6
Government Obligations 64.8
Media & Leisure 0.5
Nondurables 0.1
Retail & Wholesale 0.4
Repurchase Agreements 1.7
Services 0.7
Supranational Obligations 15.4
Technology 0.2
Utilities 2.2
100.0%
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JUNE 30, 1995 (UNAUDITED)

ASSETS

Investment in securities, at value (including repurchase $ 269,841,664
agreements of $4,622,000) (cost $265,193,522) -
See accompanying schedule

Cash 471,252

Receivable for investments sold 10,637,096

Unrealized appreciation on foreign currency contracts 147,730

Receivable for closed foreign currency contracts 6,337

Interest receivable 6,406,289

Other receivables 502,071

TOTAL ASSETS 288,012,439

LIABILITIES

Payable for investments purchased $ 9,883,824

Unrealized depreciation on foreign currency contracts 174,884

Distributions payable 58,511

Accrued management fee 168,670

Other payables and accrued expenses 179,579

TOTAL LIABILITIES 10,465,468

NET ASSETS $ 277,546,971

Net Assets consist of:

Paid in capital $ 370,962,813

Distributions in excess of net investment income (7,722,631)

Accumulated undistributed net realized gain (loss) on (90,789,341)
investments and foreign currency transactions

Net unrealized appreciation (depreciation) on 5,096,130
investments and assets and liabilities in foreign
currencies

NET ASSETS, for 27,490,376 shares outstanding $ 277,546,971

NET ASSET VALUE, offering price and redemption price per $10.10
share ($277,546,971 (divided by) 27,490,376 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)

INVESTMENT INCOME $ 11,401,593
Interest

Less foreign taxes withheld (509,237)

TOTAL INCOME 10,892,356

EXPENSES

Management fee $ 1,015,036

Transfer agent fees 384,571

Accounting fees and expenses 86,681

Non-interested trustees' compensation 958

Custodian fees and expenses 119,590

Registration fees 19,943

Audit 42,116

Legal 1,231

Interest 307

Miscellaneous 3,747

TOTAL EXPENSES 1,674,180

NET INVESTMENT INCOME 9,218,176

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

Investment securities (5,048,080)

Foreign currency transactions (1,279,374) (6,327,454)

Change in net unrealized appreciation (depreciation) on:

Investment securities 11,048,201

Assets and liabilities in foreign currencies (2,781,019) 8,267,182

NET GAIN (LOSS) 1,939,728

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 11,157,904
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31,
1995 1994
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

Operations $ 9,218,176 $ 36,075,353
Net investment income

Net realized gain (loss) (6,327,454) (109,647,947)

Change in net unrealized appreciation (depreciation) 8,267,182 (39,772,490)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 11,157,904 (113,345,084)
FROM OPERATIONS

Distributions to shareholders (8,323,251) (11,242,839)
From net investment income

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

From net realized gain - -

In excess of net realized gain - (1,579,995)

Return of capital - (20,501,873)

TOTAL DISTRIBUTIONS (8,323,251) (36,033,647)

Share transactions 110,757,973 657,341,508
Net proceeds from sales of shares

Reinvestment of distributions 7,453,618 32,369,334

Cost of shares redeemed (226,301,788) (843,781,261)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (108,090,197) (154,070,419)
FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS (105,255,544) (303,449,150)

NET ASSETS

Beginning of period 382,802,515 686,251,665

End of period (including distributions in excess of net $ 277,546,971 $ 382,802,515
investment income of $(7,722,631) and
$(8,617,556), respectively)

OTHER INFORMATION
Shares

Sold 11,193,593 58,056,699

Issued in reinvestment of distributions 758,682 2,994,322

Redeemed (23,202,722) (76,721,130)

Net increase (decrease) (11,250,447) (15,670,109)

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS SIX MONTHS YEARS ENDED DECEMBER TWO MONTH YEARS ENDED OCTOBER 31,
ENDED JUNE 30, 31, PERIOD ENDED
1995 DECEMBER 31,

SELECTED PER-SHARE DATA (UNAUDITED) 1994 1993F 1992 1992 D 1991 1990

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.880 $ 12.610 $ 11.340 $ 11.830 $ 11.980 $ 12.190 $ 11.220

Income from Investment Operations

Net investment income .224 .569 .731 .145 .839 .74 .89 E

Net realized and unrealized gain (loss) .278 (2.589) 1.648 (.173) .110 .52 .57

Total from investment operations .502 (2.020) 2.379 (.028) .949 1.26 1.46

Less Distributions (.282) (.225) (.629) (.332) (1.099) (1.03) (.49)
From net investment income

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

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

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

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

Total distributions (.282) (.710) (1.109) (.462) (1.099) (1.47) (.49)

Net asset value, end of period $ 10.100 $ 9.880 $ 12.610 $ 11.340 $ 11.830 $ 11.980 $ 12.190

TOTAL RETURN B 5.20% (16.31)% 21.91% (.23)% 8.18% 11.31% 13.45%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (in millions) $ 278 $ 383 $ 686 $ 279 $ 332 $ 160 $ 126

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

Ratio of net investment income to average 6.45%A 6.50% 6.79% 6.92%A 8.02% 7.92% 7.82%
net assets

Portfolio turnover rate 467%A 367% 198% 142%A 81% 228% 154%

A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C INCLUDES AMOUNTS DISTRIBUTED FROM NET REALIZED GAINS ON FOREIGN CURRENCY RELATED TRANSACTIONS TAXABLE AS ORDINARY INCOME.
D EFFECTIVE JULY 1, 1992, DIVIDENDS FROM NET INVESTMENT INCOME WERE DECLARED DAILY AND PAID MONTHLY.
E NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
F EFFECTIVE JANUARY 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION 93-2, "DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT
PRESENTATION OF INCOME, CAPITAL
GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES." AS A RESULT, NET INVESTMENT INCOME PER SHARE MAY REFLECT
CERTAIN RECLASSIFICATIONS RELATED TO
BOOK TO TAX DIFFERENCES.

</TABLE>

NOTES TO FINANCIAL STATEMENTS
For the period ended June 30, 1995 (Unaudited)

1. SIGNIFICANT ACCOUNTING
POLICIES.
Fidelity Global Bond (the fund) is a fund of Fidelity Investment Trust (the
trust) and is authorized to issue an unlimited number of shares. The trust
is registered under the Investment Company Act of 1940, as amended (the
1940 Act), as an open-end management investment company organized as a
Massachusetts business trust. The following summarizes the significant
accounting policies of the fund:
SECURITY VALUATION. Securities for which quotations are readily available
are valued at the last sale price, or if no sale price, at the closing bid
price in the principal market in which such securities are normally traded.
Securities (including restricted securities) for which quotations are not
readily available are valued primarily using dealer-supplied valuations or
at their fair value as determined in good faith under consistently applied
procedures under the general supervision of the Board of Trustees.
Short-term securities maturing within sixty days of their purchase date are
valued at amortized cost or original cost plus accrued interest, both of
which approximate current value.
FOREIGN CURRENCY TRANSLATION.
The accounting records of the fund are maintained in U.S. dollars.
Investment securities and other assets and liabilities denominated in a
foreign currency are translated into U.S. dollars at the prevailing rates
of exchange at period end. Purchases and sales of securities,
income receipts, and expense payments are translated into U.S. dollars at
the prevailing exchange rate on the respective dates of the transactions.
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, the fund is not subject to U.S. federal
income taxes to the extent that it distributes substantially all of its
taxable income for its fiscal year. The fund may be subject to foreign
taxes on income, gains on investments or currency repatriation. The fund
accrues such taxes as applicable. The schedule of investments includes
information regarding income taxes under the caption "Income Tax
Information."
INVESTMENT INCOME. Interest income, which includes accretion of original
issue discount, is accrued as earned. Interest income is recorded net of
foreign taxes withheld where recovery of such taxes is uncertain.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are declared daily and paid
monthly from net investment income. Distributions from realized gains, if
any, are recorded on the ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences, which may result in distribution
reclassifications, are primarily due to differing treatments for futures
and options transactions, foreign currency transactions, market discount
and losses deferred due to wash sales and excise tax regulations.
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). Distributions in excess of net investment
income and accumulated undistributed net realized gain (loss) on
investments and foreign currency transactions may include temporary book
and tax basis differences that will reverse in a subsequent period. Any
taxable income or gain remaining at fiscal year end is distributed in the
following year.
For the period ended December 31, 1994, the fund's distributions exceeded
the aggregate amount of taxable income and net realized gains resulting in
a return of capital. This was due to certain foreign currency losses which
decreased taxable income available for distribution after certain
distributions had been made.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
FORWARD FOREIGN CURRENCY CONTRACTS. The fund may use foreign currency
contracts to facilitate transactions in foreign securities and to manage
the fund's currency exposure. Contracts to buy generally are used to
acquire exposure to foreign currencies, while contracts to sell are used to
hedge the fund's investments against currency fluctuations. Also, a
contract to buy or sell can offset a previous contract. These contracts
involve market risk in excess of the unrealized gain or loss reflected in
the fund's Statement of Assets and Liabilities. The U.S. dollar value of
the currencies the fund has committed to buy or sell is shown in the
schedule of investments under the caption "Forward Foreign Currency
Contracts." This amount represents the aggregate exposure to each currency
the fund has acquired or hedged through currency contracts at period end.
Losses may arise from changes in the value of the foreign
2. OPERATING POLICIES -
CONTINUED
FORWARD FOREIGN CURRENCY
CONTRACTS - CONTINUED
currency or if the counterparties do not perform under the contracts'
terms.
The U.S. dollar value of forward foreign currency contracts is determined
using forward currency exchange rates supplied by a quotation service.
Purchases and sales of forward foreign currency contracts having the same
settlement date and broker are offset and any realized gain (loss) is
recognized on the date of offset; otherwise, gain (loss) is recognized on
settlement date. Contracts that have been offset with different
counterparties are reflected as both a contract to buy and a contract to
sell in the schedule of investments under the caption "Forward Foreign
Currency Contracts."
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other affiliated
entities of Fidelity Management & Research Company (FMR), may transfer
uninvested cash balances into one or more joint trading accounts. These
balances are invested in one or more repurchase agreements 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 fund, through its custodian, receives delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. FMR, the fund's
investment adviser, is responsible for determining that the value of these
underlying securities remains at least equal to the resale price.
INDEXED SECURITIES. The fund may invest in indexed securities whose values
are linked either directly or inversely to changes in foreign currencies,
interest rates, commodities, indices, or other underlying instruments. The
fund uses these securities to increase or decrease its exposure to
different underlying instruments and to gain exposure to markets that might
be difficult to invest in through conventional securities. Indexed
securities may be more volatile than their underlying instruments, but any
loss is limited to the amount of the original investment.
RESTRICTED SECURITIES. The fund is permitted to invest in privately placed
restricted securities. These securities may be resold in transactions
exempt from registration or to the public if the securities are registered.
Disposal of these securities may involve time-consuming negotiations and
expense, and prompt sale at an acceptable price may be difficult. At the
end of the period, restricted securities (excluding 144A issues) amounted
to $4,591,350 or 1.7% of net assets.
3. PURCHASES AND SALES
OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $590,512,892 and $652,081,481, respectively,
3. PURCHASES AND SALES
OF INVESTMENTS - CONTINUED
of which U.S. government and government agency obligations aggregated
$119,084,927 and $156,512,341, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly
fee that is calculated on the basis of a group fee rate plus a fixed
individual fund fee rate applied to the average net assets of the fund. The
group fee rate is the weighted average of a series of rates and is based on
the monthly average net assets of all the mutual funds advised by FMR. The
rates ranged from .1200% to .3700% 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 .55%. For
the period, the management fee was equivalent to an annualized rate of .70%
of average net assets.
SUB-ADVISER FEE. FMR, on behalf of the fund, entered into sub-advisory
agreements with affiliates of FMR. In addition, one of the sub-advisers,
Fidelity International Investment Advisors (FIIA), entered into a
sub-advisory agreement with its subsidiary, Fidelity International
Investment Advisors (U.K.) Limited (FIIAL U.K.). Under the sub-advisory
arrangements, FMR may receive investment advice and research services and
may grant the sub-advisers investment management authority to buy and sell
securities. FMR pays its sub-advisers either a portion of its management
fee or a fee based on costs incurred for these services. FIIA pays FIIAL
U.K. a fee based on costs incurred for either service.
DISTRIBUTION AND SERVICE PLAN. Pursuant to the Distribution and Service
Plan (the Plan), and in accordance with Rule 12b-1 of the 1940 Act, FMR or
the fund's distributor, Fidelity Distributors Corporation (FDC), an
affiliate of FMR, may use their resources to pay administrative and
promotional expenses related to the sale of the fund's shares. Subject to
the approval of the Board of Trustees, the Plan also authorizes payments to
third parties that assist in the sale of the fund's shares or render
shareholder support services. FMR or FDC has informed the fund that
payments made to third parties under the Plan amounted to $10,640 for the
period.
TRANSFER AGENT FEES. Fidelity Service Co. (FSC), an affiliate of FMR, is
the fund's transfer, dividend disbursing and shareholder servicing agent.
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.
Under the prior transfer agent contract, FSC received fees based on the
type, size, number of accounts and the number of transactions made by
shareholders. FSC pays for typesetting, printing and mailing of all
shareholder reports, except proxy statements.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
ACCOUNTING FEES. FSC maintains the fund's accounting records. The fee is
based on the level of average net assets for the month plus out-of-pocket
expenses.
5. BANK BORROWINGS.
The fund is permitted to have bank borrowings for temporary or emergency
purposes to fund shareholder redemptions. The fund has established
borrowing arrangements with certain banks. Under the most restrictive
arrangement, the fund must pledge to the bank securities having a market
value in excess of 220% of the total bank borrowings. The interest rate on
the borrowings is the bank's base rate, as revised from time to time. The
maximum loan and the average daily loan balances during the periods for
which loans were outstanding amounted to $1,881,000. The weighted average
interest rate was 5.875%.
TO CALL FIDELITY

INVESTMENT ADVISER
Fidelity Management & Research
Company
Boston, MA
INVESTMENT SUB-ADVISERS
Fidelity Management & Research
(U.K.) Inc. London, England
Fidelity Management & Research
(Far East) Inc. Tokyo, Japan
Fidelity International Investment
Advisors
Fidelity International Investment
Advisors (U.K.) Limited
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Arthur S. Loring, Secretary
Stephen P. Jonas, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
CUSTODIAN
Chase Manhattan Bank, N.A.
New York, NY
FIDELITY'S TAXABLE BOND FUNDS
Capital & Income Fund
Ginnie Mae Portfolio
Global Bond Fund
Government Securities Fund
Intermediate Bond Fund
Investment Grade Bond Fund
Mortgage Securities Portfolio
New Markets Income Fund
Short-Intermediate Government Fund
Short-Term Bond Portfolio
Short-Term World Income Fund
Spartan(registered trademark) Ginnie Mae Fund
Spartan Government Income Fund
Spartan High Income Fund
Spartan Investment Grade Bond Fund
Spartan Limited Maturity
Government Fund
Spartan Long-Term Government
Bond Fund
Spartan Short-Intermediate
Government Fund
Spartan Short-Term Income Fund
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
(registered trademark)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE