FIDELITY INVESTMENT TRUST, 485BPOS, 1996-02-23

FIDELITY INVESTMENT TRUST
485BPOS, 1996-02-23

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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT (No. 2-90649)
UNDER THE SECURITIES ACT OF 1933 [x]

Pre-Effective Amendment No. [ ]

Post-Effective Amendment No. 65 [x]

and
REGISTRATION STATEMENT UNDER THE INVESTMENT

COMPANY ACT OF 1940 (No. 811-4008) [x]

Amendment No. [ ]

Fidelity Investment Trust
(Exact Name of Registrant as Specified in Charter)
82 Devonshire St., Boston, MA 02109
(Address Of Principal Executive Offices)
Registrant's Telephone Number: (617) 563-7000
Arthur S. Loring, Secretary
82 Devonshire Street,
Boston, Massachusetts 02109
(Name and Address of Agent for Service)
It is proposed that this filing will become effective:
( ) immediately upon filing pursuant to paragraph (b)
(x) on February 26, 1996 pursuant to paragraph (b)
( ) 60 days after filing pursuant to paragraph (a)(i)
( ) on pursuant to paragraph (a)(i)
( ) 75 days after filing pursuant to paragraph (a)(ii)
( ) on pursuant to paragraph (a)(ii) of rule 485.
If appropriate, check the following box:
( ) this post-effective amendment designates a new effective date for a
previously filed post-effective amendment.
Registrant has filed a declaration pursuant to Rule 24f-2 under the
Investment Company Act of 1940 and intends to file the notice required by
such Rule on or before February 29, 1996.
FIDELITY INVESTMENT TRUST:
FIDELITY SHORT-TERM WORLD BOND FUND
FIDELITY GLOBAL BOND FUND
FIDELITY NEW MARKETS INCOME FUND
CROSS-REFERENCE SHEET
FORM N-1A
ITEM NUMBER

PROSPECTUS PROSPECTUS SECTION

<TABLE>
<CAPTION>
<S> <C>
1 Cover Page

2a Expenses

b,c Contents; The Funds at a Glance; Who May Want to Invest

3a Financial Highlights

b *

c,d Performance

4a(i) Charter

(ii) The Funds at a Glance; Investment Principles and Risks

b Investment Principles and Risks

c Who May Want to Invest; Investment Principles and Risks

5a Charter

b(i) Cover Page; The Funds at a Glance; Charter; Doing Business with
Fidelity

b(ii) Charter

b(iii) Expenses; Breakdown of Expenses

c Charter

d Charter; Breakdown of Expenses

e Cover Page; Charter

f Expenses

g(i) Charter

g(ii) *

5A Performance

6a(i) Charter

a(ii) How to Buy Shares; How to Sell Shares; Transaction Details; Exchange
Restrictions

a(iii) Charter

b *

c Transaction Details; Exchange Restrictions

d *

e Doing Business with Fidelity; How to Buy Shares; How to Sell Shares;
Investor Services

f,g Dividends, Capital Gains, and Taxes

7a Cover Page; Charter

b Expenses; How to Buy Shares; Transaction Details

c *

d How to Buy Shares

e *

f Breakdown of Expenses

8 How to Sell Shares; Investor Services; Transaction Details; Exchange
Restrictions

9 *

</TABLE>

* Not Applicable
FIDELITY INVESTMENT TRUST:
FIDELITY SHORT-TERM WORLD BOND FUND
FIDELITY GLOBAL BOND FUND
FIDELITY NEW MARKETS INCOME FUND
PART B STATEMENT OF ADDITIONAL INFORMATION SECTION

<TABLE>
<CAPTION>
<S> <C>
10, 11 Cover Page

12 Description of the Trust

13a-c Investment Policies and Limitations

d Portfolio Transactions

14a, b Trustees and Officers

c *

15a, b *

c Trustees and Officers

16a(i) FMR; Portfolio Transactions

a(ii) Trustees and Officers

a(iii), b Management Contracts

c,d Contracts with FMR Affiliates

e *

f Distribution and Service Plans

g *

h Description of the Trust

i Contracts with FMR Affiliates

17a,b,c Portfolio Transactions

d,e *

18a Description of the Trust

b *

19a Additional Purchase and Redemption Information

b Valuation of Portfolio Securities; Additional Purchase and Redemption
Information

c *

20 Distributions and Taxes

21a,b Contracts with FMR Affiliates

c *

22a *

b Performance

23 Financial Statements

</TABLE>

* Not Applicable
Please read this prospectus before investing, and keep it on file for
future reference. It contains important information, including how each
fund invests and the services available to shareholders.
To learn more about each fund and its investments, you can obtain a copy of
the funds' most recent financial reports and portfolio listing, or a
copy of the Statement of Additional Information (SAI) dated February 26,
1996 . The SAI has been filed with the Securities and Exchange
Commission (SEC) and is incorporated herein by reference (legally forms a
part of the prospectus). For a free copy of either document, call Fidelity
at 1-800-544-8888.
Mutual fund shares are not deposits or obligations of, or guaranteed by,
any depository institution. Shares are not insured by the FDIC, Federal
Reserve Board or any other agency, and are subject to investment
risks , including possible loss of principal amount invested.
New Markets Income may invest without limitation in lower-quality debt
securities, sometimes called "junk bonds." Investors should consider that
these securities carry greater risks, such as the risk of default, than
other debt securities. Refer to "Investment Principles and Risks" on page
for further information.

LIKE ALL MUTUAL FUNDS, THESE
SECURITIES HAVE NOT BEEN
APPROVED OR DISAPPROVED
BY THE SECURITIES AND
EXCHANGE COMMISSION OR
ANY STATE SECURITIES
COMMISSION, NOR HAS THE
SECURITIES AND EXCHANGE
COMMISSION OR ANY STATE
SECURITIES COMMISSION
PASSED UPON THE ACCURACY
OR ADEQUACY OF THIS
PROSPECTUS. ANY
REPRESENTATION TO THE
CONTRARY IS A CRIMINAL
OFFENSE.
ITL-pro-296

FIDELITY'S
INTERNATIONAL BOND
FUNDS
Each of these international funds invests in debt securities around the
world.
FIDELITY SHORT-TERM WORLD BOND FUND seeks high current income and
preservation of capital by investing mainly in short-term debt securities.
FIDELITY GLOBAL BOND FUND seeks high total return by focusing on a broad
range of debt securities.
FIDELITY NEW MARKETS INCOME FUND seeks high current income and capital
appreciation by focusing on issuers in emerging markets.
PROSPECTUS
FEBRUARY 26, 1996(FIDELITY_LOGO_GRAPHIC) 82 DEVONSHIRE STREET, BOSTON, MA
02109
CONTENTS

<TABLE>
<CAPTION>
<S> <C> <C>
KEY FACTS THE FUNDS AT A GLANCE

WHO MAY WANT TO INVEST

EXPENSES Each fund's yearly operating
expenses.

FINANCIAL HIGHLIGHTS A summary of each fund's
financial data.

PERFORMANCE How each fund has done over
time.

THE FUNDS IN DETAIL CHARTER How each fund is organized.

INVESTMENT PRINCIPLES AND RISKS Each fund's
overall approach to investing.

BREAKDOWN OF EXPENSES How operating costs
are calculated and what they include.

YOUR ACCOUNT DOING BUSINESS WITH FIDELITY

TYPES OF ACCOUNTS Different ways to set up
your account, including tax-sheltered retirement
plans.

HOW TO BUY SHARES Opening an account and
making additional investments.

HOW TO SELL SHARES Taking money out and
closing your account.

INVESTOR SERVICES Services to help you manage
your account.

SHAREHOLDER AND DIVIDENDS, CAPITAL GAINS, AND TAXES
ACCOUNT POLICIES

TRANSACTION DETAILS Share price calculations
and the timing of purchases and redemptions.

EXCHANGE RESTRICTIONS

</TABLE>

KEY FACTS

THE FUNDS AT A GLANCE
MANAGEMENT: Fidelity Management & Research Company (FMR) is the management
arm of Fidelity Investments, which was established in 1946 and is now
America's largest mutual fund manager. Foreign affiliates of FMR may help
choose investments for the funds.
As with any mutual fund, there is no assurance that a fund will achieve its
goal.
SHORT-TERM WORLD BOND
GOAL: High current income with preservation of capital.
STRATEGY: Invests mainly in short-term debt securities issued anywhere in
the world while maintaining an average maturity of three years or less.
SIZE: As of December 31, 1995, the fund had over $ 121 million in
assets.
GLOBAL BOND
GOAL: High total investment return.
STRATEGY: Invests in a broad range of debt securities issued anywhere in
the world.
SIZE: As of December 31, 1995, the fund had over $ 196 million in
assets.
NEW MARKETS INCOME
GOAL: High current income, with a secondary objective of capital
appreciation.
STRATEGY: Invests mainly in debt securities and other instruments of
issuers in emerging markets around the world.
SIZE: As of December 31, 1995, the fund had over $ 176 million in
assets.
WHO MAY WANT TO INVEST
These non-diversified funds may be appropriate for investors who want to
invest in debt securities issued around the world. By including
international investments in your portfolio, you can achieve additional
diversification and participate in growth opportunities around the world.
However, it is important to note that investments in foreign securities
involve risks in addition to those of U.S. investments.
Short-Term World Bond is designed for investors seeking income from
short-term securities. Global Bond is designed for those looking for both
income and the potential for capital growth, and who can accept a
higher degree of risk. New Markets Income is designed for investors seeking
higher income and capital appreciation than both Short-Term World Bond
and Global Bond, but who are also willing to accept the even greater
risks and volatility from investments in emerging market securities.
The value of the funds' investments and the income they generate will vary
from day to day, and generally reflect interest rates, market conditions,
and other economic and political news both here and abroad. Investments
in foreign securities may involve risks in addition to those of U.S.
investments, including increased political and economic risk, as well as
exposure to currency fluctuations. When you sell your shares, they may
be worth more or less than what you paid for them. By themselves, the funds
do not constitute a balanced investment plan.
Non-diversified funds may invest a greater portion of their assets in
securities of individual issuers than diversified funds. As a result,
changes in the market value of a single issuer could cause greater
fluctuations in share value than would occur in a more diversified
fund.
EXPENSES
SHAREHOLDER TRANSACTION EXPENSES are charges you pay when you buy, sell or
hold shares of a fund. See page for more information about these
fees.
Maximum sales charge on purchases and
reinvested distributions None
Deferred sales charge on redemptions None
Exchange fee None
Redemption fee on shares held less than 180 days
(New Markets Income only) 1.00%
Annual account maintenance fee
(for accounts under $2 , 500) $12.00
ANNUAL FUND OPERATING EXPENSES are paid out of each fund's assets. Each
fund pays a management fee to FMR. It also incurs other expenses for
services such as maintaining shareholder records and furnishing shareholder
statements and financial reports. A fund's expenses are factored into its
share price or dividends and are not charged directly to shareholder
accounts (see page ).
The following are projections based on historical expenses, and are
calculated as a percentage of average net assets.
SHORT-TERM WORLD BOND
Management fee .60 %

12b-1 fee None

Other expenses .46 %

Total fund operating expenses 1.06
%

GLOBAL BOND
Management fee .70 %

12b-1 fee None

Other expenses .46 %

Total fund operating expenses 1.16
%

NEW MARKETS INCOME
Management fee .70 %

12b-1 fee None

Other expenses .47 %

Total fund operating expenses 1.17
%

EXAMPLES: Let's say, hypothetically, that each fund's annual return is 5%
and that its operating expenses are exactly as just described. For every
$1,000 you invested, here's how much you would pay in total expenses if you
close your account after the number of years indicated:

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
After 1 After 3 After 5 After 10
year years years years

Short-Term $11 $34 $58 $129
World Bond

Global Bond $12 $37 $64 $141

New Markets
$12 $37 $64 $142
Income

</TABLE>

These examples illustrate the effect of expenses, but are not meant to
suggest actual or expected costs or returns, all of which may vary.
FMR has voluntarily agreed to temporarily limit New Markets Income's
operating expenses to 1.20% of its average net assets.
FINANCIAL HIGHLIGHTS
The tables that follow are included in each fund's Annual Report and have
been audited by Coopers & Lybrand, L.L.P., independent accountants, for
Short-Term World Bond and Global Bond, and by Price Waterhouse LLP,
independent accountants, for New Markets Income. Their reports on the
financial statements and financial highlights are included in the Annual
Reports. The financial statements and financial highlights are incorporated
by reference into (are legally a part of) the funds' Statement of
Additional Information.
SHORT-TERM WORLD BOND FUND

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
1.Selected Per-Share
Data and
Ratios

2.Years ended
December 31 1995 1994 1993E 1992G 1992F 1991D

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

4.Income from Investment
Operations .619 .644 .564 .191 .835 .061
Net investment income

5. Net realized
and unrealized
gain (loss) .049 (1.218) .621 (.203) (.338) .037

6. Total from
investment
operations .668 (.574) 1.185 (.012) .497 .098

7.Less
Distributions (.568) (.199) (.543) (.108) (.737) (.058)
From net investment income

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

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

10. Total
distributions (.568) (.706) (.675) (.108) (.737) (.058)

11.Net asset value,
end of period $ 9.010 $ 8.910 $ 10.190 $ 9.680 $ 9.800 $ 10.040

12.Total
returnB,C 7.79% (5.80)% 12.59% (.12)% 5.10% .98%

13.Net assets,
end of period
(000 omitted) $ 121,934 $ 265,407 $ 422,602 $ 458,846 $ 648,448 $ 44,318

14.Ratio of
expenses to
average net
assets 1.06% 1.01% 1.00% 1.20%A, 1.09% 1.00%A,
H H

15.Ratio of net
investment income
to average net
assets 6.42% 7.54% 8.00% 8.63%A 9.04% 9.07%A

16.Portfolio turnover
rate 284% 134% 160% 117%A 154% 62%A

</TABLE>

<TABLE>
<CAPTION>
<S>
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
17.Selected Per-Share Data and Ratios

18.Years ended December 31
1995 1994M 1993E 1992G 1992F,L 1991F 1990F 1989F 1988F 1987D

19.Net asset value, beginning of period
$ 9.880 $ 12.610 $ 11.340 $ 11.830 $ 11.980 $ 12.19 $ 11.22 $ 11.47 $ 10.45 $ 10.00

20.Income from Investment Operations
.685 .158 .731 .145 .839 .74 .89I .82I 1.08 .56
Net investment income

21. Net realized and unrealized gain
(.049) (2.178) 1.648 (.173) .110K .52 .57 (.17) .07 .45
(loss)

22. Total from investment operations
.636 (2.020) 2.379 (.028) .949 1.26 1.46 .65 1.15 1.01

23.Less Distributions
(.516) (.225) (.629) (.332) (1.099) (1.03) (.49) (.81) (.13) (.56)
From net investment income

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

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

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

27. Return of capital
(.060) (.411) -- -- -- -- -- -- -- --

28. Total distributions
(.576) (.710) (1.109) (.462) (1.099) (1.47) (.49) (.90) (.13) (.56)

29.Net asset value, end of period
$ 9.940 $ 9.880 $ 12.610 $ 11.340 $ 11.830 $ 11.98 $ 12.19 $ 11.22 $ 11.47 $ 10.45

30.Total returnB,C
6.66 (16.31) 21.91 (.23) 8.18 11.31 13.45 6.04% 11.07% 10.30%
% % % % % % %

31.Net assets, end of period (000
$ 196,862 $ 382,803 $ 686,25 $ 279,204 $ 332,33 $ 160,08 $ 126,44 $ 56,520 $ 56,180 $ 43,846
omitted) 2 3 3 4

32.Ratio of expenses to average net
1.16 1.14 1.17 1.37 1.23 1.35 1.40 1.50% 1.14% .95%
assets
% % % %A % % % H H A,H

33.Ratio of net investment income to
6.19 6.50 6.79 6.92 8.02 7.92 7.82 7.56% 7.61% 7.14%
average net assets
% % % %A % % %

34.Portfolio turnover rate
322 367 198 142 81 228 154 150% 227% 297%
% % % %A % % % A

</TABLE>

A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
D FROM DECEMBER 30, 1986 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1987.
E 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.
F FISCAL YEAR ENDED OCTOBER 31.
G TWO-MONTH PERIOD ENDED DECEMBER 31, 1992.
H FMR VOLUNTARILY AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES
DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
I NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
J INCLUDES AMOUNTS DISTRIBUTED FROM NET REALIZED GAINS ON FOREIGN CURRENCY
RELATED TRANSACTIONS TAXABLE AS ORDINARY INCOME.
K THE AMOUNT SHOWN FOR A SHARE OUTSTANDING DOES NOT CORRESPOND WITH THE
AGGREGATE NET LOSS ON INVESTMENTS FOR THE PERIOD ENDED DUE TO THE TIMING OF
SALES AND REPURCHASES OF FUND SHARES IN RELATION TO FLUCTUATING MARKET
VALUES OF THE INVESTMENTS OF THE FUND.
L EFFECTIVE JULY 1, 1992, DIVIDENDS FROM NET INVESTMENT INCOME WERE
DECLARED DAILY AND PAID MONTHLY.
M AMOUNTS HAVE BEEN ADJUSTED TO CONFORM WITH PRESENT PERIOD ACCOUNTING
POLICIES.
NEW MARKETS INCOME FUND

<TABLE>
<CAPTION>
<S> <C> <C> <C>
35.Selected Per-Share Data and Ratios

36.Years ended December 31 1995 1994 1993G

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

38.Income from Investment Operations
1.222 .573E .486H
Net investment income

39. Net realized and unrealized gain (loss) (.583) (2.687) 3.302

40. Total from investment operations .639 (2.114) 3.788

41.Less Distributions
(.916) (.529) (.486)
From net investment income

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

43. From net realized gain -- (.180) (.170)

44. Total distributions (.916) (.766) (.718)

45. Redemption fees added to paid in capital .037 -- --

46.Net asset value, end of period $ 9.950 $ 10.190 $ 13.070

47.Total returnB,C 7.97% (16.55)% 38.84%

48.Net assets, end of period (000 omitted) $ 176,499 $ 179,114 $ 286,593

49.Ratio of expenses to average net assets 1.17% 1.28%D, 1.24%A
F ,D

50.Ratio of net investment income to average net assets 9.51% 5.87% 6.29%A

51.Portfolio turnover rate 306% 409% 324%A

</TABLE>

A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
D FMR VOLUNTARILY AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES
DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
E INCLUDES INTEREST EXPENSE OF $.008 PER SHARE.
F INCLUDES INTEREST EXPENSE OF .08% OF AVERAGE NET ASSETS.
G FROM MAY 4, 1993 (COMMENCEMENT OF OPERATIONS) TO DECEMBER 31, 1993.
H NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
PERFORMANCE
Bond fund performance can be measured as TOTAL RETURN or YIELD. The total
returns that follow are based on historical fund results and do not reflect
the effect of taxes.
Each fund's fiscal year runs from January 1 through December 31. The tables
below show each fund's performance history compared to an index and a
measure of inflation. The charts on page compare each fund's
calendar-year performance with that of its respective index.
AVERAGE ANNUAL TOTAL RETURNS

<TABLE>
<CAPTION>
<S> <C> <C> <C>
Fiscal periods ended Past 1 Past 5 Life of
December 31, 1995 year years fund

Short-Term World Bond 7.79 % n/a 4.63 %A

Salomon Bros. World Govt. Bond 11.17 % 6.86 % n/a
Index, 1-3 Yrs. Hdgd.

Global Bond 6.66 % 5.08 % 7.55 %B

Salomon Bros. World Govt. Bond 19.04 % 11.02 % n/a
Index Unhdgd.

New Markets Income 7.97 % n/a 8.77 %C

J.P. Morgan Emg. Mkts. Bond Index 27.54 % 17.30 % n/a

J.P. Morgan Emg. Mkts. Bond Index 26.78% n/a n/a
Plus

Consumer Price Index 2.54% 2.79% n/a

</TABLE>

CUMULATIVE TOTAL RETURNS

<TABLE>
<CAPTION>
<S> <C> <C> <C>
Fiscal periods ended Past 1 Past 5 Life of
December 31, 1995 year years fund

Short-Term World Bond 7.79 % n/a 21.18 %A

Salomon Bros. World Govt. Bond 11.17 % 39.34 % n/a
Index, 1-3 Yrs. Hdgd .

Global Bond 6.66 % 28.11 % 92.68 %B

Salomon Bros. World Govt. Bond 19.04 % 68.65 % n/a
Index Unhdgd.

New Markets Income 7.97 % n/a 25.10 %C

J .P. Morgan Emg. Mkts. Bond Index 27.54% 122.03% n/a

J.P. Morgan Emg. Mkts. Bond Index 26.78% n/a n/a
Plus

Consumer Price Index 2.54% 14.72% n/a

</TABLE>

A FROM OCTOBER 4, 1991
B FROM DECEMBER 30, 1986
C FROM MAY 4, 1993
EXPLANATION OF TERMS
TOTAL RETURN is the change in value of an investment in a fund over a given
period, assuming reinvestment of any dividends and capital gains. A
CUMULATIVE TOTAL RETURN reflects actual performance over a stated period of
time. An AVERAGE ANNUAL TOTAL RETURN is a hypothetical rate of return that,
if achieved annually, would have produced the same cumulative total return
if performance had been constant over the entire period. Average annual
total returns smooth out variations in performance; they are not the same
as actual year-by-year results.
YIELD refers to the income generated by an investment in a fund over a
given period of time, expressed as an annual percentage rate. Yields are
calculated according to a standard that is required for all stock and bond
funds. Because this differs from other accounting methods, the quoted yield
may not equal the income actually paid to shareholders. This difference may
be significant for funds whose investments are denominated in foreign
currencies.
THE SALOMON BROTHERS WORLD GOVERNMENT BOND INDEX, 1-3 YEARS
CURRENCY HEDGED INTO U.S. DOLLAR TERMS, is the comparative index
for Short-Term World Bond . The index is market-capitalization
weighted and currently tracks the performance of 14 world government
bond markets with fixed-rate coupons. Issues included in the index
have maturities of between one and three years.
THE SALOMON BROTHERS WORLD GOVERNMENT BOND INDEX UNHEDGED is the
comparative index for Global Bond. The index is market-capitalization
weighted and tracks the performance of 14 world government bond markets
with fixed-rate coupons. Issues included in the index have a minimum
maturity of one year.
THE J.P. MORGAN EMERGING MARKETS BOND INDEX, the comparative index for New
Markets Income, is a market-capitalization weighted total return index that
monitors the trading market for dollar-denominated sovereign restructured
bonds. New Markets Income also compares to the J.P. MORGAN EMERGING
MARKETS BOND INDEX PLUS, an index which tracks total returns for traded
external debt instruments in the emerging markets. Included in the index
are U.S. dollar- and other external-, currency-denominated Brady bonds,
loans, Eurobonds, and local market instruments.

UNDERSTANDING PERFORMANCE
Because these funds invest in fixed-income
securities, their performance is related to
changes in interest rates. Funds that hold
short-term bonds are usually less affected by
changes in interest rates than long-term bond
funds. For that reason, long-term bond funds
typically offer higher yields and carry more risk
than short-term bond funds.
(checkmark)
THE CONSUMER PRICE INDEX is a widely recognized measure of inflation
calculated by the U.S. government.
The funds' recent strategies, performance, and holdings are detailed twice
a year in financial reports, which are sent to all shareholders. For
current performance or a free annual report, call 1-800-544-8888.
TOTAL RETURNS AND YIELDS ARE BASED ON PAST RESULTS AND ARE NOT AN
INDICATION OF FUTURE PERFORMANCE.
SHORT-TERM WORLD BOND

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total returns 1992 1993 1994 1995

SHORT-TERM WORLD BOND 4.83 % 12.59 -5.80 7.79 %
% %

Salomon Bros. World Govt. Bond Index, 6.16 % 6.18 % 1.00 % 11.17
1-3 Yrs. Hdgd. %

</TABLE>

Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 1, Col: 2, Value: nil
Row: 2, Col: 1, Value: nil
Row: 2, Col: 2, Value: nil
Row: 3, Col: 1, Value: nil
Row: 3, Col: 2, Value: nil
Row: 4, Col: 1, Value: nil
Row: 4, Col: 2, Value: nil
Row: 5, Col: 1, Value: nil
Row: 5, Col: 2, Value: nil
Row: 6, Col: 1, Value: nil
Row: 6, Col: 2, Value: nil
Row: 7, Col: 1, Value: nil
Row: 7, Col: 2, Value: nil
Row: 8, Col: 1, Value: 4.83
Row: 8, Col: 2, Value: 6.159999999999999
Row: 9, Col: 1, Value: 12.59
Row: 9, Col: 2, Value: 6.18
Row: 10, Col: 1, Value: -5.8
Row: 10, Col: 2, Value: 1.0
Row: 11, Col: 1, Value: 7.79
Row: 11, Col: 2, Value: 11.17
(large solid box) SHORT-TERM WORLD BOND
(large hollow box) Salomon Bros. World Govt.
Bond Index, 1-3 Yrs. Hdgd.
GLOBAL BOND

<TABLE>
<CAPTION>
<S> <C>
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total returns
1987 1988 1989 1990 1991 1992 1993 1994 1995

GLOBAL BOND
19.14 3.66 % 7.93% 12.28 12.77 4.40 % 21.91 -16.3 6.66 %
% % % % 1 %

Salomon Bros. World Govt. Bond Index
18.41 4.37 % 4.34% 11.97 15.82 5.52 % 13.27 2.34 % 19.04
Unhdgd.
% % % % %

</TABLE>

Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 1, Col: 2, Value: nil
Row: 2, Col: 1, Value: nil
Row: 2, Col: 2, Value: nil
Row: 3, Col: 1, Value: 19.14
Row: 3, Col: 2, Value: 18.41
Row: 4, Col: 1, Value: 3.66
Row: 4, Col: 2, Value: 4.37
Row: 5, Col: 1, Value: 7.930000000000001
Row: 5, Col: 2, Value: 4.34
Row: 6, Col: 1, Value: 12.28
Row: 6, Col: 2, Value: 11.97
Row: 7, Col: 1, Value: 12.77
Row: 7, Col: 2, Value: 15.82
Row: 8, Col: 1, Value: 4.4
Row: 8, Col: 2, Value: 5.52
Row: 9, Col: 1, Value: 21.91
Row: 9, Col: 2, Value: 13.27
Row: 10, Col: 1, Value: -16.31
Row: 10, Col: 2, Value: 2.34
Row: 11, Col: 1, Value: 6.659999999999999
Row: 11, Col: 2, Value: 19.04
(large solid box) GLOBAL BOND
(large hollow box) Salomon Bros. World Govt.
Bond Index Unhdgd .
NEW MARKETS INCOME

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total returns 1994 1995

NEW MARKETS INCOME -16.5 7.97 %
5 %

J.P. Morgan Emg. Mkts . Bond Index -18.6 27.54
8 % %

</TABLE>

Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 1, Col: 2, Value: nil
Row: 2, Col: 1, Value: nil
Row: 2, Col: 2, Value: nil
Row: 3, Col: 1, Value: nil
Row: 3, Col: 2, Value: nil
Row: 4, Col: 1, Value: nil
Row: 4, Col: 2, Value: nil
Row: 5, Col: 1, Value: nil
Row: 5, Col: 2, Value: nil
Row: 6, Col: 1, Value: nil
Row: 6, Col: 2, Value: nil
Row: 7, Col: 1, Value: nil
Row: 7, Col: 2, Value: nil
Row: 8, Col: 1, Value: nil
Row: 8, Col: 2, Value: nil
Row: 9, Col: 1, Value: -16.55
Row: 9, Col: 2, Value: -18.68
Row: 10, Col: 1, Value: 7.970000000000001
Row: 10, Col: 2, Value: 27.54
(large solid box) NEW MARKETS INCOME
(large hollow box) J.P. Morgan Emg. Mkts.
Bond Index
THE FUNDS IN DETAIL

CHARTER
EACH FUND IS A MUTUAL FUND: an investment that pools shareholders' money
and invests it toward a specified goal. In technical terms, each fund is
currently a non-diversified fund of Fidelity Investment Trust, an open-end
management investment company organized as a Massachusetts business trust
on April 20, 1984.
EACH FUND IS GOVERNED BY A BOARD OF TRUSTEES, which is responsible for
protecting the interests of shareholders. The trustees are experienced
executives who meet throughout the year to oversee the funds' activities,
review contractual arrangements with companies that provide services to the
funds, and review performance. The majority of trustees are not otherwise
affiliated with Fidelity.
THE FUNDS MAY HOLD SPECIAL MEETINGS AND MAIL PROXY MATERIALS. These
meetings may be called to elect or remove trustees, change fundamental
policies, approve a management contract, or for other purposes.
Shareholders not attending these meetings are encouraged to vote by proxy.
Fidelity will mail proxy materials in advance, including a voting card and
information about the proposals to be voted on. You are entitled to one
vote for each share you own.
FMR AND ITS AFFILIATES
The funds are managed by FMR, which handles their business affairs and,
with the assistance of foreign affiliates, chooses the funds'
investments.
Affiliates may assist FMR with foreign securities:
(small solid bullet) Fidelity Management & Research (U.K.) Inc. (FMR U.K.),
in London, England, serves as a sub-adviser for all the funds.
(small solid bullet) Fidelity Management & Research Far East Inc. (FMR Far
East), in Tokyo, Japan, serves as a sub-adviser for all the funds.
(small solid bullet) Fidelity International Investment Advisors (FIIA), in
Pembroke, Bermuda, serves as a sub-adviser for all the funds.
(small solid bullet) Fidelity International Investment Advisors (U.K.)
Limited (FIIAL U.K.), in Kent, England, serves as a sub-adviser for all the
funds. Currently, FIIAL U.K. exercises discretionary management authority
over Short-Term World Bond and Global Bond in its capacity as sub-adviser.
(small solid bullet) Fidelity Investments Japan Ltd. (FIJ), in Tokyo, Japan
serves as a sub-adviser for New Markets Income.
Luc Huyghebaert is the manager of Short-Term World Bond's non-U.S.
investments, which he has managed since February 1996. He also manages
several funds for Fidelity International, Limited (FIL). He joined Fidelity
as a fixed-income analyst in 1994. Previously, Mr. Huyghebaert was a
manager at SOGEM in Moscow, and he worked as a tin and cobalt trader in
Brussels.
Charles Morrison is the manager of Short-Term World Bond's U.S.
investments, which he has managed since February 1996. He also manages
Short-Term Bond, Spartan Short-Term Bond, and Advisor Short Fixed-Income.
Previously, he managed a variety of trust portfolios. Mr. Morrison joined
Fidelity in 1987.
Ian Spreadbury is the manager of Global Bond's non-U.S. investments, which
he has managed since February 1996. He joined Fidelity in 1995 as a
director of fixed income for Fidelity International, Limited (FIL). He also
manages several funds for FIL. Previously, Mr. Spreadbury held positions as
a senior fund manager, pension underwriter, and assistant actuary for Legal
& General, Limited.
Christine Thompson is the manager of Global Bond's U.S. investments, which
she has managed since February 1996. Ms. Thompson also manages Intermediate
Bond, U.S. Bond Index, and the Target Timeline Funds. Previously, she was a
senior bond analyst. Ms. Thompson joined Fidelity in 1985.
John Carlson is manager of New Markets Income, which he has managed since
joining Fidelity in June 1995. Mr. Carlson also manages Advisor Emerging
Markets Income, Advisor Strategic Income, and Canada Emerging Markets Bond.
Previously, he was executive director of emerging markets at Lehman
Brothers International. From 1990 to 1992, Mr. Carlson was executive vice
president of capital markets for Daiwa Securities America.
Fidelity investment personnel may invest in securities for their own
account pursuant to a code of ethics that establishes procedures for
personal investing and restricts certain transactions.
Fidelity Distributors Corporation (FDC) distributes and markets Fidelity's
funds and services. Fidelity Service Co. (FSC) performs transfer agent
servicing functions for the funds.
FMR Corp. is the ultimate parent company of FMR, FMR U.K., and FMR Far
East. Members of the Edward C. Johnson 3d family are the predominant owners
of a class of shares of common stock representing approximately 49% of the
voting power of FMR Corp. Under the Investment Company Act of 1940 (the
1940 Act), control of a company is presumed where one individual or group
of individuals owns more than 25% of the voting stock of that company;
therefore, the Johnson family may be deemed under the 1940 Act to form a
controlling group with respect to FMR Corp. Fidelity International Limited
(FIL) i s the ultimate parent company of FIIA, FIIAL U.K., and FIJ. The
Johnson family group also owns, directly or indirectly, more than 25% of
the voting common stock of FIL.
To carry out the funds' transactions, FMR may use its broker-dealer
affiliates and other firms that sell fund shares, provided that a fund
receives services and commission rates comparable to those of other
broker-dealers.
INVESTMENT PRINCIPLES AND RISKS
SHORT-TERM WORLD BOND seeks as high a level of current income as is
consistent with preservation of capital. The fund focuses on short-term
debt and money market securities issued anywhere in the world. Although
the fund can invest in securities of any maturity, the fund maintains a
dollar-weighted average maturity of three years or less under normal
conditions. In determining a security's maturity for purposes of
calculating the fund's average maturity, an estimate of the average
time for its principal to be paid may be used. This can be substantially
shorter than its stated final maturity. As of December 31, 1995, the
fund's dollar-weighted average maturity was approximately 2.0 years.
GLOBAL BOND seeks high total investment return by investing principally in
debt securities issued anywhere in the world. Under normal conditions, FMR
will invest at least 65% of the fund's assets in debt securities. The fund,
however, may also invest in convertible securities, warrants, and other
securities. Although FMR emphasizes income when selecting the fund's
investments, the potential for capital appreciation is also considered.
NEW MARKETS INCOME seeks high current income and, as a secondary objective,
capital appreciation, by investing mainly in debt securities of issuers in
emerging markets. FMR normally invests at least 65% of the fund's total
assets in these securities. Countries with emerging markets include the
following:
(small solid bullet) countries that have an emerging stock market, as
defined by the International Finance Corporation,
(small solid bullet) countries with low- to middle-income economies,
according to the World Bank,
(small solid bullet) countries listed in World Bank publications as
developing.
The fund emphasizes countries with relatively low gross national product
per capita and with the potential for rapid economic growth. This strategy
tends to lead to investments in Latin America and, to a lesser extent,
Asia, Africa, and emerging European nations. FMR determines where an issuer
is located by looking at such factors as its country of organization, the
primary trading market for its securities, and the location of its assets,
personnel, sales, and earnings.
The fund may also invest a portion of its assets in common and preferred
stocks of emerging market issuers, debt securities of non-emerging market
foreign issuers, and lower-quality debt securities of U.S. issuers.
Although the fund may invest up to 35% of its total assets in these
securities, FMR does not currently anticipate that these investments will
exceed approximately 20% of the fund's total assets. Though common and
preferred stocks and convertible securities present the possibility for
significant capital appreciation over the long term, they may fluctuate
dramatically in the short term and entail a high degree of risk. For cash
management purposes, the fund will ordinarily invest a portion of its
assets in high-quality, short-term debt securities and money market
instruments, including repurchase agreements and bank deposits denominated
in U.S. or foreign currencies.
EACH FUND'S risk and reward depends on the quality and maturity of its
investments. Because Short-Term World Bond invests in
higher-quality, short-term debt securities, it has lower risk and yield
potential than the other funds. Global Bond can invest in lower-quality
debt securities, and FMR expects that its dollar-weighted average maturity
will not be greater than fifteen years under normal market conditions. New
Markets Income has even more flexibility as to the quality and maturity of
its investments. In addition, since New Markets Income invests primarily in
securities of emerging markets, which can be considered speculative, it
tends to offer higher income and total return potential, but significantly
greater risk. Lower quality, longer term investments typically offer higher
yields, but also carry more risk.
Each fund can invest in the securities of any type of issuer, including
U.S. and foreign governments, corporations, banks, and supranational
organizations. There is no limit on investments in any region, country, or
currency, although each fund normally invests in at least three different
countries.
The total return from a bond is a combination of income and price gains
or losses. While income is the most important component of bond returns
over time, Short-Term World Bond's emphasis on income does not mean
that the fund invests only in the highest-yielding bonds available, or that
it can avoid risks to principal. In selecting investments for the fund, FMR
considers a bond's income potential together with its potential for price
gains or losses. FMR focuses on assembling a portfolio of income-producing
securities that it believes will provide the best tradeoff between risk and
return within the range of securities that are eligible investments for the
funds.
Each fund's yield and share price change daily and are based on changes
in interest rates, market conditions, other economic and political news,
and on the quality and maturity of their investments. In general, bond
prices rise when interest rates fall, and vice versa. This effect is
usually more pronounced for longer-term securities. Lower-quality
securities offer higher yields, but also carry more risk. Investments in
foreign securities may involve risks in addition to those of U.S.
investments, including increased political and economic risk, as well as
exposure to currency fluctuations. FMR may use various investment
techniques to hedge a portion of the funds' risks, but there is no
guarantee that these strategies will work as intended. When you sell your
shares of the funds, th ey may be worth more or less than what you paid
for them.
FMR normally invests each fund's assets according to its investment
strategy. When FMR considers it appropriate for defensive purposes,
however, Short-Term World Bond and Global Bond may temporarily
invest substantially in U.S. financial markets or in U.S.
dollar-denominated instruments. New Markets Income may invest substantially
in money market instruments, U.S. government securities, or
investment-grade obligations of U.S. companies.
SECURITIES AND INVESTMENT PRACTICES
The following pages contain more detailed information about types of
instruments in which a fund may invest, strategies FMR may employ in
pursuit of a fund's investment objective, and a summary of related
risks. Any restrictions listed supplement those discussed earlier in this
section. A complete listing of each fund's limitations and more
detailed information about the funds' investments are contained in the
funds' SAI . Policies and limitations are considered at the time of
purchase; the sale of instruments is not required in the event of a
subsequent change in circumstances.
FMR may not buy all of these instruments or use all of these techniques
unless it believes that they are consistent with a fund's investment
objective and policies and that doing so will help a fund achieve its goal.
Current holdings and recent investment strategies are described in each
fund's financial reports which are sent to shareholders twice a year.
For a free SAI or financial report, call 1-800-544-8888.
EQUITY SECURITIES may include common stocks, preferred stocks, convertible
securities, and warrants. Common stocks, the most familiar type, represent
an equity (ownership) interest in a corporation. Although equity securities
have a history of long-term growth in value, their prices fluctuate based
on changes in a company's financial condition and on overall market and
economic conditions. Smaller companies are especially sensitive to these
factors.
DEBT SECURITIES. Bonds and other debt instruments are used by issuers to
borrow money from investors. The issuer pays the investor a fixed or
variable rate of interest, and must repay the amount borrowed at maturity.
Some debt securities, such as zero coupon bonds, do not pay current
interest, but are purchased at a discount from their face values. In
general, bond prices rise when interest rates fall, and vice versa. Debt
securities have varying degrees of quality and varying levels of
sensitivity to changes in interest rates. Longer-term bonds are
generally more sensitive to interest rate changes than short-term bonds.
U.S. government securities are high-quality instruments issued or
guaranteed by the U.S. Treasury or by an agency or instrumentality of the
U.S. government. Not all U.S. government securities are backed by the full
faith and credit of the United States. Some are supported only by the
credit of the agency that issued them.
Lower-quality debt securities (sometimes called "junk bonds") are
considered to have speculative characteristics and involve greater risk of
default or price changes due to changes in the issuer's
creditworthiness, or they may already be in default. The market prices of
these securities may fluctuate more than higher-quality securities and may
decline significantly in periods of general economic difficulty.
The tables on pages and provide a summary of ratings assigned to
debt holdings (not including money market instruments) in each fund's
portfolio. These figures are dollar-weighted aver ages of month-end
portfolio holdings during fiscal 1995, and are presented as a
percentage of total security investments. These percentages are historical
and do not necessarily indicate a fund's current or future debt holdings.
RESTRICTIONS: For Short - Term World Bond , purchase of a debt
security is consistent with the fund's debt quality policy if it is rated
at or above the stated level by Moody's or rated in the equivalent
categories by any other nationally recognized rating service, or is unrated
but judged to be of equivalent quality by FMR. The fund currently intends
to limit its investments in lower than A-quality debt securities to 35% of
its total assets and in lower than Baa-quality debt securities to 10% of
its total assets. In addition, the fund currently intends to limit its
investments in debt securities to those of Ba-quality or above. For Global
Bond, purchase of a debt security is consistent with the fund's debt
quality policy if it is rated at or above the stated level by Moody's or
rated in the equivalent categories by S&P, or is unrated but judged to be
of equivalent quality by FMR. The fund currently intends to limit its
investments in lower than Baa-quality debt securities to less than
35% of its total assets.
MONEY MARKET SECURITIES are high-quality, short-term obligations
issued by the U.S. Government, corporations, financial institutions, and
other entities. These obligations may carry fixed, variable, or floating
interest rates.
EXPOSURE TO FOREIGN MARKETS. Foreign securities, foreign currencies,
and securities issued by U.S. entities with substantial foreign operations
may involve additional risks and considerations. These include risks
relating to political or economic conditions in foreign countries,
fluctuations in foreign currencies, withholding or other taxes, operational
risks, increased regulatory burdens, and the potentially less stringent
investor protection and disclosure standards of foreign markets.
Additionally, governmental issuers of foreign securities may be unwilling
to repay principal and interest when due, and may require that the
conditions for payment be renegotiated. All of these factors can make
foreign investments, especially those in developing countries, more
volatile.
FIDELITY SHORT-TERM WORLD BOND FUND
Fiscal 1995 Debt Holdings, by Rating MOODY'S STANDARD &
POOR'S

INVESTORS SERVICE, INC.
Rating Average A Rating Avera
geA
INVESTMENT GRADE

Highest quality Aaa 47.18% AAA 50.34%

High quality Aa 6.11% AA 9.30%

Upper-medium grade A 11.96% A 6.70%

Medium grade Baa 0.18% BBB 0.91%
LOWER QUALITY

Moderately speculative Ba 0.08% BB 0.15%

Speculative B 0.00% B 0.00%

Highly speculative Caa 0.00% CCC 0.00%

Poor quality Ca 0.00% CC 0.00%

Lowest quality, no interest C C

In default, in arrears -- D 0.00%

65.51% 67.40%

FIDELITY GLOBAL BOND FUND
Fiscal 1995 Debt Holdings, by Rating MOODY'S STANDARD &
POOR'S

INVESTORS SERVICE, INC.
Rating Average A Rating Avera
geA
INVESTMENT GRADE

Highest quality Aaa 66.61% AAA 65.45%

High quality Aa 8.05% AA 4.39%

Upper-medium grade A 3.60% A 2.69%

Medium grade Baa 1.38% BBB 1.33%
LOWER QUALITY

Moderately speculative Ba 0.55% BB 0.86%

Speculative B 3.26% B 0.00%

Highly speculative Caa 0.00% CCC 0.00%

Poor quality Ca 0.00% CC 0.00%

Lowest quality, no interest C C

In default, in arrears -- D 0.00%

83.45% 74.72%
A FOR SOME FOREIGN GOVERNMENT OBLIGATIONS, FMR ASSIGNS THE RATINGS OF THE
SOVEREIGN CREDIT OF THE ISSUING GOVERNMENT.
THE DOLLAR-WEIGHTED AVERAGE OF DEBT SECURITIES NOT RATED DIRECTLY OR
INDIRECTLY BY MOODY'S OR S&P AMOUNTED TO 7.57% FOR
FIDELITY SHORT-TERM WORLD BOND FUND AND 5.35% FOR FIDELITY GLOBAL BOND
FUND . THIS MAY INCLUDE SECURITIES RATED BY OTHER
NATIONALLY RECOGNIZED RATING SERVICES, AS WELL AS UNRATED SECURITIES. REFER
TO THE FUNDS' STATEMENT OF ADDITIONAL INFORMATION
FOR A MORE COMPLETE DISCUSSION OF THESE RATINGS.

FIDELITY NEW MARKETS INCOME FUND
Fiscal 1995 Debt Holdings, by Rating MOODY'S STANDARD &
POOR'S

INVESTORS SERVICE, INC.
Rating Average A Rating Avera
geA
INVESTMENT GRADE

Highest quality Aaa 0.30% AAA 0.15%

High quality Aa 0.00% AA 0.27%

Upper-medium grade A 0.27% A 0.00%

Medium grade Baa 1.11% BBB 0.74%
LOWER QUALITY

Moderately speculative Ba 8.59% BB 16.89%

Speculative B 27.65% B 9.68%

Highly speculative Caa 0.00% CCC 0.00%

Poor quality Ca 0.00% CC 0.00%

Lowest quality, no interest C C

In default, in arrears -- D 0.00%

37.92% 27.73%
A FOR SOME FOREIGN GOVERNMENT OBLIGATIONS, FMR ASSIGNS THE RATINGS OF THE
SOVEREIGN CREDIT OF THE ISSUING GOVERNMENT.
THE DOLLAR-WEIGHTED AVERAGE OF DEBT SECURITIES NOT RATED DIRECTLY OR
INDIRECTLY BY MOODY'S OR S&P AMOUNTED TO 41.13%
FOR FIDELITY NEW MARKETS INCOME FUND . THIS MAY INCLUDE SECURITIES
RATED BY OTHER NATIONALLY RECOGNIZED RATING SERVICES,
AS WELL AS UNRATED SECURITIES. FMR HAS DETERMINED THAT UNRATED SECURITIES
THAT ARE LOWER-QUALITY ACCOUNT FOR 25.36% OF
NEW MARKETS INCOME'S TOTAL SECURITY INVESTMENTS. REFER TO THE FUNDS'
STATEMENT OF ADDITIONAL INFORMATION FOR A MORE
COMPLETE DISCUSSION OF THESE RATINGS.

ASSET-BACKED AND MORTGAGE SECURITIES include interests in pools of
lower-rated debt securities, or consumer loans or mortgages, or complex
instruments such as collateralized mortgage obligations and stripped
mortgage-backed securities. The value of these securities may be
significantly affected by changes in interest rates, the market's
perception of the issuers, and the creditworthiness of the parties
involved. Some securities may have a structure that makes their reaction to
interest rates and other factors difficult to predict, making their value
highly volatile. These securities may also be subject to prepayment risk.
STRIPPED SECURITIES are the separate income or principal components of a
debt security. Their risks are similar to those of other debt
securities, although they may be more volatile and the value of certain
types of stripped securities may move in the same direction as interest
rates.
REPURCHASE AGREEMENTS. In a repurchase agreement, a fund buys a security at
one price and simultaneously agrees to sell it back at a higher price.
Delays or losses could result if the other party to the agreement defaults
or becomes insolvent.
FOREIGN REPURCHASE AGREEMENTS may be less well secured than U.S. repurchase
agreements, and may be denominated in foreign currencies. They also may
involve greater risk of loss if the counterparty defaults. Some
counterparties in these transactions may be less creditworthy than those in
U.S. markets.
ADJUSTING INVESTMENT EXPOSURE. A fund can use various techniques to
increase or decrease its exposure to changing security prices, interest
rates, currency exchange rates, commodity prices, or other factors that
affect security values. These techniques may involve derivative
transactions such as buying and selling options and futures contracts,
entering into currency exchange contracts or swap agreements, and
purchasing indexed securities.
FMR can use these practices to adjust the risk and return characteristics
of a fund's portfolio of investments. If FMR judges market conditions
incorrectly or employs a strategy that does not correlate well with the
fund's investments, these techniques could result in a loss, regardless of
whether the intent was to reduce risk or increase return. These techniques
may increase the volatility of the fund and may involve a small investment
of cash relative to the magnitude of the risk assumed. In addition, these
techniques could result in a loss if the counterparty to the transaction
does not perform as promised.
DIRECT DEBT. Loans and other direct debt instruments are interests in
amounts owed to another party by a company, government, or other borrower.
They have additional risks beyond conventional debt securities because they
may entail less legal protection for a fund, or there may be a requirement
that a fund supply additional cash to a borrower on demand.
ILLIQUID AND RESTRICTED SECURITIES. Some investments may be determined by
FMR, under the supervision of the Board of Trustees, to be illiquid, which
means that they may be diffi cult to sell promptly at an acceptable
price. The sale of some illiquid securities and some other securities
may be subject to legal restrictions. Difficulty in selling securities may
result in a loss or may be costly to a fund.
RESTRICTIONS: A fund may not purchase a security if, as a result, more than
15% of its assets would be invested in illiquid securities.
WHEN-ISSUED AND DELAYED-DELIVERY TRANSACTIONS are trading practices in
which payment and delivery for the securities take place at a future date.
The market value of a security could change during this period, which could
affect a fund's yield.
DIVERSIFICATION. Diversifying a fund's investment portfolio can reduce the
risks of investing. This may include limiting the amount of money invested
in any one issuer or, on a broader scale, in any one industry. A fund that
is not diversified may be more sensitive to changes in the market value of
a single issuer or industry.
RESTRICTIONS: The funds are considered non-diversified. Generally, to meet
federal tax requirements at the close of each quarter, a fund does not
invest more than 25% of its total assets in any one issuer and, with
respect to 50% of total assets, does not invest more than 5% of its total
assets in any one issuer. A fund may not invest more than 25% of its total
assets in any one industry (other than the financial services industry for
Short-Term World Bond ). These limitations do not apply to U.S.
government securities.
FINANCIAL SERVICES INDUSTRY. Companies in the financial services industry
are subject to various risks related to that industry, such as government
regulation, changes in interest rates, and exposure on loans, including
loans to foreign borrowers. If a fund invests substantially in this
industry, its performance may be affected by conditions affecting the
industry.
RESTRICTIONS: Short-Term World Bond may not invest less than 25% of
its total assets in the financial services industry under normal
conditions.
BORROWING. A fund may borrow from banks or from other funds advised by FMR,
or through reverse repurchase agreements. If a fund borrows money, its
share price may be subject to greater fluctuation until the borrowing is
paid off. If the fund makes additional investments while borrowings are
outstanding, this may be considered a form of leverage.
RESTRICTIONS: A fund may borrow only for temporary or emergency purposes,
but not in an amount exceeding 33% of its total assets.
LENDING. Lending securities to broker-dealers and institutions,
including Fidelity Brokerage Services, Inc. (FBSI), an affiliate of
FMR, is a means of earning income. This practice could result in a loss or
a delay in recovering a fund's securities. A fund may also lend money to
other funds advised by FMR.
RESTRICTIONS: Loans, in the aggregate, may not exceed 33% of a fund's total
assets.
FUNDAMENTAL INVESTMENT POLICIES AND RESTRICTIONS
Some of the policies and restrictions discussed on the preceding pages are
fundamental, that is, subject to change only by shareholder approval. The
following paragraphs restate all those that are fundamental. All policies
stated throughout this prospectus, other than those identified in the
following paragraphs, can be changed without shareholder approval.
SHORT-TERM WORLD BOND seeks as high a level of current income as is
consistent with preservation of capital.
GLOBAL BOND seeks high total investment return by investing principally in
debt securities issued anywhere in the world.
NEW MARKETS INCOME seeks high current income. As a secondary objective, the
fund seeks capital appreciation.
EACH FUND may not invest more than 25% of its total assets in any one
industry, except that Short-Term World Bond will invest at least 25%
of its total assets in the financial services industry. Each fund may
borrow only for temporary or emergency purposes, but not in an amount
exceeding 33% of its total assets. Loans, in the aggregate, may not exceed
33% of a fund's total assets.
BREAKDOWN OF EXPENSES
Like all mutual funds, the funds pay fees related to their daily
operations. Expenses paid out of a fund's assets are reflected in its share
price or dividends; they are neither billed directly to shareholders nor
deducted from shareholder accounts.
Each fund pays a MANAGEMENT FEE to FMR for managing its investments and
business affairs. FMR in turn may pay fees to affiliates who provides
assistance with these services. Each fund also pays OTHER
EXPENSES, which are explained on page .
FMR may, from time to time, agree to reimburse the funds for management
fees and other expenses above a specified limit. FMR retains the ability to
be repaid by a fund if expenses fall below the specified limit prior to the
end of the fiscal year. Reimbursement arrangements, which may be terminated
at any time without notice, can decrease a fund's expenses and boost its
performance.
MANAGEMENT FEE
The management fee is calculated and paid to FMR every month. The fee is
calculated by adding a group fee rate to an individual fund fee rate, and
multiplying the result by the fund's average net assets.
UNDERSTANDING THE

MANAGEMENT FEE
The management fee FMR receives is designed
to be responsive to changes in FMR's total
assets under management. Building this
variable into the fee calculation assures
shareholders that they will pay a lower rate as
FMR's assets under management increase.
(checkmark)
The group fee rate is based on the average net assets of all the mutual
funds advised by FMR. This rate cannot rise above .37%, and it drops as
total assets under management increase.
For December 1995, the group fee rate was .1482 %. The individual
fund fee rate is .45% for Short-Term World Bond and .55% for Global
Bond and New Markets Income. The total management fee rate for fiscal 1995
for Short-Term World Bond, Global Bond, and New Markets Income
and was .60%, .70 % and .70 %, respectively.
FMR HAS SUB-ADVISORY AGREEMENTS with four affiliates: FMR U.K., FMR Far
East, FIJ (for New Markets Income only), and FIIA. FIIA in turn has a
sub-advisory agreement with FIIAL U.K. FMR U.K. focuses on issuers based in
Europe. FMR Far East focuses on issuers based in Asia and the Pacific
Basin. FIJ focuses on issuers based in Japan and elsewhere around the
world. FIIA focuses on issuers based in Hong Kong, Australia, New Zealand,
and Southeast Asia (other than Japan). FIIAL U.K. focuses on issuers based
in the United Kingdom and Europe.
The sub-advisers are compensated for providing investment research and
advice. FMR pays FMR U.K. and FMR Far East fees equal to 110% and 105%,
respectively, of the costs of providing these services. FMR pays FIJ and
FIIA 30% of its management fee associated with investments for which the
sub-adviser provided investment advice. FIIA pays FIIAL U.K. a fee equal to
110% of the cost of providing these services.
The sub-advisers may also provide investment management services. In
return, FMR pays FMR U.K., FMR Far East, FIJ, and FIIA a fee equal to 50%
of its management fee rate with respect to a fund's investments that the
sub-adviser manages on a discretionary basis. FIIA pays FIIAL U.K. a fee
equal to 110% of the cost of providing these services.
OTHER EXPENSES
While the management fee is a significant component of the funds' annual
operating costs, the funds have other expenses as well.
The funds contract with FSC to perform many transaction and accounting
functions. These services include processing shareholder transactions,
valuing each fund's investments, and handling securities loans. In
fiscal 1995, Short-Term World Bond , Global Bond, and New Markets Income
paid FSC fees equal to .32 %, .36 %, and .31 %,
respectively, of average net assets.
The funds also pay other expenses, such as legal, audit, and custodian
fees; proxy solicitation costs; and the compensation of trustees who are
not affiliated with Fidelity. A broker-dealer may use a portion of the
commissions paid by a fund to reduce the fund's custodian or transfer agent
fees.
Each fund has adopted a Distribution and Service Plan. These plans
recognize that FMR may use its resources, including management fees, to pay
expenses associated with the sale of fund shares. This may include payments
to third parties, such as banks or broker-dealers, that provide shareholder
support services or engage in the sale of the fund's shares. It is
important to note, however, that the funds do not pay FMR any separate fees
for this service.
For fiscal 1995, the portfolio turnover rates for Short-Term World
Bond , Global Bond, and New Markets Income were 284 %, 322%,
and 306 %, respectively. These rates vary from year to year. High
turnover rates increase transaction costs and may increase taxable capital
gains. FMR considers these effects when evaluating the anticipated benefits
of short-term investing.

Doing Business with Fidelity
Fidelity Investments was established in 1946 to manage one of America's
first
mutual funds. Today, Fidelity is the largest mutual fund company in the
country,
and is known as an innovative provider of high#quality financial services
to
individuals and institutions.
In addition to its mutual fund business, the company operates one of
America's
leading discount brokerage firms, FBSI. Fidelity is also a leader in
providing
tax#sheltered retirement plans for individuals investing on their own or
through
their employer.
Fidelity is committed to providing investors with practical information to
make investment decisions. Based in Boston, Fidelity provides customers
with
complete service 24 hours a day, 365 days a year, through a network of
telephone
service centers around the country.
To reach Fidelity for general information, call these numbers:
S
For mutual funds, 1#800#544#8888
S
For brokerage, 1#800#544#7272
If you would prefer to speak with a representative in person, Fidelity has
over 80 walk#in Investor Centers across the country.

Types of Accounts
You may set up an account directly in a fund or, if you own or intend to
purchase
individual securities as part of your total investment portfolio, you may
consider
investing in a fund through a brokerage account.
If you are investing through FBSI or another financial institution or
investment
professional, refer to its program materials for any special provisions
regarding
your investment in the fund.
The different ways to set up (register) your account with Fidelity are
listed
in the table that follows.
The account guidelines that follow may not apply to certain retirement
accounts.
If your employer offers a fund through a retirement program, contact your
employer
for more information. Otherwise, call Fidelity directly.
Fidelity Facts
Fidelity offers the broadest selection of mutual funds in the world.
w
Number of Fidelity mutual funds: over 210
w
Assets in Fidelity mutual funds: over $354 billion
w
Number of shareholder accounts: over 23 million
w
Number of investment analysts and portfolio managers: over 200
3
Ways to Set Up Your Account
Individual or Joint Tenant
For your general investment needs
Individual accounts are owned by one person. Joint accounts can have two or

more owners (tenants).
Retirement
To shelter your retirement savings from taxes
Retirement plans allow individuals to shelter investment income and capital

gains from current taxes. In addition, contributions to these accounts may
be tax deductible. Retirement accounts require special applications and
typically
have lower minimums.
Individual Retirement Accounts (IRAs)
allow anyone of legal age and under 70 with earned income to save up to
$2,000
per tax year. Individuals can also invest in a spouse's IRA if the spouse
has
earned income of less than $250.
Rollover IRAs
retain special tax advantages for certain distributions from
employer#sponsored
retirement plans.
Keogh or Corporate Profit Sharing and Money Purchase Pension Plans
allow self#employed individuals or small business owners (and their
employees)
to make tax deductible contributions for themselves and any eligible
employees
up to $30,000 per year.
Simplified Employee Pension Plans (SEP#IRAs)
provide small business owners or those with self#employed income (and
their
eligible employees) with many of the same advantages as a Keogh, but with
fewer
administrative requirements.
403(b) Custodial Accounts
are available to employees of most tax#exempt institutions, including
schools,
hospitals, and other charitable organizations.
401(k) Programs
allow employees of corporations of all sizes to contribute a percentage of

their wages on a tax#deferred basis. These accounts need to be established
by the trustee of the plan.
Gifts or Transfers to a Minor (UGMA, UTMA)
To invest for a child's education or other future needs
These custodial accounts provide a way to give money to a child and obtain
tax benefits. An individual can give up to $10,000 a year per child without

paying federal gift tax. Depending on state laws, you can set up a
custodial
account under the Uniform Gifts to Minors Act (UGMA) or the Uniform
Transfers
to Minors Act (UTMA).
Trust
For money being invested by a trust
The trust must be established before an account can be opened.
Business or Organization
For investment needs of corporations, associations, partnerships,
institutions,
or other groups
Requires a special application.

How to Buy Shares
Each fund's share price,
called net asset value (NAV), is calculated every business day. Each
fund's
shares are sold without a sales charge.
Shares are purchased at the next share price calculated after your
investment
is received and accepted. Share price is normally calculated at 4 p.m.
Eastern
time.
If you are new to Fidelity,
complete and sign an account application and mail it along with your
check.
You may also open your account in person or by wire as described at right.
If there is no application accompanying this prospectus, call
1#800#544#8888.
If you already have money invested in a Fidelity fund,
you can:
S
Mail in an application with a check, or
S
Open your account by exchanging from another Fidelity fund.
If you are investing through a tax#sheltered retirement plan,
such as an IRA, for the first time, you will need a special application.
Retirement
investing also involves its own investment procedures. Call 1#800#544#8888
for more information and a retirement application.
If you buy shares by check or Fidelity Money LineR, and then sell those
shares
by any method other than by exchange to another Fidelity fund, the payment
may be delayed for up to seven business days to ensure that your previous
investment
has cleared.
Minimum Investments
To Open an Account $2,500
For Fidelity retirement accounts $500
To Add to an Account $250
For Fidelity retirement accounts $250
Through automatic investment plans $100
Minimum Balance $1,000
For Fidelity retirement accounts $500
These minimums may vary for investments through Fidelity Portfolio Advisory

Services. Refer to the program materials for details.
Key Information
Phone 1#800#544#7777
S
To open an account, exchange from another Fidelity fund account with the
same
registration, including name, address, and taxpayer ID number.
S
To add to an account, exchange from another Fidelity fund account with the
same registration, including name, address, and taxpayer ID number. You can

also use Fidelity Money Line to transfer from your bank account. Call
before
your first use to verify that this service is in place on your account.
Maximum
Money Line $50,000
Mail
S
To open an account, complete and sign the application. Make your check
payable
to the complete name of the fund of your choice. Mail to the address
indicated
on the application.
S
To add to an account, make your check payable to the complete name of the
fund
of your choice. Indicate your fund account number on your check and mail to

the address printed on your account statement.
S
Exchange by mail: call 1#800#544#6666 for instructions.
In Person
S
To open an account, bring your application and check to a Fidelity Investor

Center. Call 1#800#544#9797 for the center nearest you.
S
To add to an account, bring your check to a Fidelity Investor Center. Call
1#800#544#9797 for the center nearest you.
Wire
Not available for retirement accounts.
S
To open an account, call 1#800#544#7777 to set up your account and to
arrange
a wire transaction. Wire within 24 hours to the wire address below. Specify

the complete name of the fund and include your new account number and your
name.
S
To add to an account, wire to the wire address below. Specify the complete
name of the fund and include your account number and your name.
S
Wire address: Bankers Trust Company, Bank Routing #021001033, Account #
00163053.
Automatically
New accounts cannot be opened with these services.
S
Use Fidelity Automatic Account Builder or Direct Deposit to automatically
purchase
more shares. Sign up for these services when opening your account, or call
1#800#544#6666.
S
Use Directed Dividends or Fidelity Automatic Exchange Service to
automatically
send money from one Fidelity fund into another. Call 1#800#544#6666 for
instructions.

TDD - Service for the Deaf and Hearing#Impaired: 1#800#544#0118

How to Sell Shares
You can arrange to take money out of your fund account at any time by
selling
(redeeming) some or all of your shares. Your shares will be sold at the
next
share price calculated after your order is received and accepted. Share
price
is normally calculated at 4 p.m. Eastern time.
To sell shares in a non#retirement account,
you may use any of the methods described on these two pages.
To sell shares in a Fidelity retirement account,
your request must be made in writing, except for exchanges to other
Fidelity
funds, which can be requested by phone or in writing. Call 1#800#544#6666
for
a retirement distribution form.
If you are selling some but not all of your shares,
leave at least $1,000 worth of shares in the account to keep it open ($500

for retirement accounts).
To sell shares by bank wire or Fidelity Money Line,
you will need to sign up for these services in advance.
Certain requests must include a signature guarantee.
It is designed to protect you and Fidelity from fraud. Your request must
be
made in writing and include a signature guarantee if any of the following
situations
apply:
S
You wish to redeem more than $100,000 worth of shares,
S
Your account registration has changed within the last 30 days,
S
The check is being mailed to a different address than the one on your
account
(record address),
S
The check is being made payable to someone other than the account owner, or
S
The redemption proceeds are being transferred to a Fidelity account with a
different registration.
You should be able to obtain a signature guarantee from a bank, broker
(including
Fidelity Investor Centers), dealer, credit union (if authorized under state

law), securities exchange or association, clearing agency, or savings
association.
A notary public cannot provide a signature guarantee.
Selling Shares in Writing
Write a "letter of instruction" with:
S
Your name,
S
The fund's name,
S
Your fund account number,
S
The dollar amount or number of shares to be redeemed, and
S
Any other applicable requirements listed in the table at right.
Unless otherwise instructed, Fidelity will send a check to the record
address.
Deliver your letter to a Fidelity Investor Center, or mail it to:
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266#0602
Checkwriting
If you have a checkbook for your account in Short#Term World Bond, you may
write an unlimited number of checks. Do not, however, try to close out your

account by check.
Key Information
If you sell shares of New Markets Income after holding them less than 180
days,
the fund will deduct a redemption fee equal to 1.00% of the value of those
shares.
Phone 1#800#544#7777
All account types except retirement
S
Maximum check request: $100,000.
S
For Money Line transfers to your bank account; minimum: $10; maximum:
$100,000.
All account types
S
You may exchange to other Fidelity funds if both accounts are registered
with
the same name(s), address, and taxpayer ID number.
Mail or in Person
Individual, Joint Tenant, Sole Proprietorship, UGMA, UTMA
S
The letter of instruction must be signed by all persons required to sign
for
transactions, exactly as their names appear on the account.
Retirement account
S
The account owner should complete a retirement distribution form. Call
1#800#544#6666
to request one.
Trust
S
The trustee must sign the letter indicating capacity as trustee. If the
trustee's
name is not in the account registration, provide a copy of the trust
document
certified within the last 60 days.
Business or Organization
S
At least one person authorized by corporate resolution to act on the
account
must sign the letter.
S
Include a corporate resolution with corporate seal or a signature
guarantee.
Executor, Administrator, Conservator, Guardian
S
Call 1#800#544#6666 for instructions.
Wire
All account types except retirement
S
You must sign up for the wire feature before using it. To verify that it is

in place, call 1#800#544#6666. Minimum wire: $5,000.
S
Your wire redemption request must be received by Fidelity before 4 p.m.
Eastern
time for money to be wired on the next business day.
Check
All account types except retirement
S
Minimum check: $500.
S
All account owners must sign a signature card to receive a checkbook.

TDD - Service for the Deaf and Hearing#Impaired: 1#800#544#0118

Investor Services
Fidelity provides a variety of services to help you manage your account.
Information Services
Fidelity's telephone representatives
are available 24 hours a day, 365 days a year. Whenever you call, you can
speak with someone equipped to provide the information or service you need.
Statements and reports
that Fidelity sends to you include the following:
S
Confirmation statements (after every transaction, except reinvestments,
that
affects your account balance or your account registration)
S
Account statements (quarterly)
S
Financial reports (every six months)
To reduce expenses, only one copy of most financial reports will be mailed
to your household, even if you have more than one account in the fund. Call

1#800#544#6666 if you need copies of financial reports or historical
account
information.
Transaction Services
Exchange privilege.
You may sell your fund shares and buy shares of other Fidelity funds by
telephone
or in writing.
Note that exchanges out of a fund are limited to four per calendar year,
and
that they may have tax consequences for you. For details on policies and
restrictions
governing exchanges, including circumstances under which a shareholder's
exchange
privilege may be suspended or revoked, see page 26.
Systematic withdrawal plans
let you set up periodic redemptions from your account.
Fidelity Money Liner
enables you to transfer money by phone between your bank account and your
fund account. Most transfers are complete within three business days of
your
call.
24#Hour Service
Account Assistance 1#800#544#6666
Account Balances 1#800#544#7544
Account Transactions 1#800#544#7777
Product Information 1#800#544#8888
Quotes 1#800#544#8544
Retirement Account Assistance 1#800#544#4774
Automated service
3
Regular Investment Plans
One easy way to pursue your financial goals is to invest money regularly.
Fidelity
offers convenient services that let you transfer money into your fund
account,
or between fund accounts, automatically. While regular investment plans do
not guarantee a profit and will not protect you against loss in a declining

market, they can be an excellent way to invest for retirement, a home,
educational
expenses, and other long#term financial goals. Certain restrictions apply
for
retirement accounts. Call 1#800#544#6666 for more information.
Regular Investment Plans
Fidelity Automatic Account BuilderSM
To move money from your bank account to a Fidelity fund
Minimum
$100
Frequency
Monthly or quarterly
Setting up or changing
S
For a new account, complete the appropriate section on the fund
application.
S
For existing accounts, call 1#800#544#6666 for an application.
S
To change the amount or frequency of your investment, call 1#800#544#6666
at
least three business days prior to your next scheduled investment date.
Direct Deposit
To send all or a portion of your paycheck or government check to a Fidelity

fundA
Minimum
$100
Frequency
Every pay period
Setting up or changing
S
Check the appropriate box on the fund application, or call 1#800#544#6666
for
an authorization form.
S
Changes require a new authorization form.
Fidelity Automatic Exchange Service
To move money from a Fidelity money market fund to another Fidelity fund
Minimum
$100
Frequency
Monthly, bimonthly, quarterly, or annually
Setting up or changing
S
To establish, call 1#800#544#6666 after both accounts are opened.
S
To change the amount or frequency of your investment, call 1#800#544#6666.
A Because their share prices fluctuate, these funds may not be appropriate
choices for direct deposit of your entire check.
SHAREHOLDER AND ACCOUNT POLICIES

DIVIDENDS, CAPITAL GAINS, AND TAXES
Each fund distributes substantially all of its net investment income and
capital gains to shareholders each year. Income dividends are declared
daily and paid monthly. Capital gains are normally distributed in December
and February.
DISTRIBUTION OPTIONS
When you open an account, specify on your application how you want to
receive your distributions. If the option you prefer is not listed on the
application, call 1-800-544-6666 for instructions. Each fund offers four
options:
1. REINVESTMENT OPTION. Your dividend and capital gain distributions will
be automatically reinvested in additional shares of the fund. If you do not
indicate a choice on your application, you will be assigned this option.
2. INCOME-EARNED OPTION. Your capital gain distributions will be
automatically reinvested, but you will be sent a check for each dividend
distribution.
3. CASH OPTION. You will be sent a check for your dividend and capital gain
distributions.
4. DIRECTED DIVIDENDS(registered trademark) OPTION. Your dividend and
capital gain distributions will be automatically invested in another
identically registered Fidelity fund.
FOR RETIREMENT ACCOUNTS, all distributions are automatically reinvested.
When you are over 59 years old, you can receive distributions in cash.
Dividends will be reinvested at the fund's NAV on the last day of the
month. Capital gain distributions will be reinvested at the NAV as of the
date the fund deducts the distribution from its NAV. The mailing of
distribution checks will begin within seven days, or longer for a December
ex-dividend date.

UNDERSTANDING DISTRIBUTIONS
As a fund shareholder, you are entitled to your
share of the fund's net income and gains on its
investments. The fund passes these earnings
along to its investors as DISTRIBUTIONS.
Each fund earns dividends from stocks and
interest from bond, money market and other
investments. These are passed along as
DIVIDEND DISTRIBUTIONS . A fund realizes
capital gains whenever it sells securities for a
higher price than it paid for them. These are
passed along as CAPITAL GAIN DISTRIBUTIONS.
(checkmark)
TAXES
As with any investment, you should consider how your investment in a fund
will be taxed. If your account is not a tax-deferred retirement account,
you should be aware of these tax implications.
TAXES ON DISTRIBUTIONS. Distributions are subject to federal income tax,
and may also be subject to state or local taxes. If you live outside the
United States, your distributions could also be taxed by the country in
which you reside. Your distributions are taxable when they are paid,
whether you take them in cash or reinvest them. However, distributions
declared in December and paid in January are taxable as if they were paid
on December 31.
For federal tax purposes, each fund's income and short-term capital gain
distributions are taxed as dividends; long-term capital gain distributions
are taxed as long-term capital gains. Every January, Fidelity will send you
and the IRS a statement showing the taxable distributions paid to you in
the previous year.
TAXES ON TRANSACTIONS. Your redemptions - including exchanges to other
Fidelity funds - are subject to capital gains tax. A capital gain or loss
is the difference between the cost of your shares and the price you receive
when you sell them.
Whenever you sell shares of a fund, Fidelity will send you a confirmation
statement showing how many shares you sold and at what price. You will also
receive a consolidated transaction statement every January. However, it is
up to you or your tax preparer to determine whether this sale resulted in a
capital gain and, if so, the amount of tax to be paid. Be sure to keep your
regular account statements; the information they contain will be essential
in calculating the amount of your capital gains.
"BUYING A DIVIDEND." If you buy shares just before a fund deducts a
capital gain distribution from its NAV, you will pay the full price
for the shares and then receive a portion of the price back in the form of
a taxable distribution.
CURRENCY CONSIDERATIONS. If a fund's dividends exceed its taxable income in
any year, which is sometimes the result of currency-related losses, all or
a portion of the fund's dividends may be treated as a return of capital to
shareholders for tax purposes. To minimize the risk of a return of
capital, the funds may adjust their dividends to take currency fluctuations
into account, which may cause the dividends to vary. Any return of
capital will reduce the cost basis of your shares, which will result in a
higher reported capital gain or a lower reported capital loss when you sell
your shares. The statement you receive in January will specify if any
distributions included a return of capital.
EFFECT OF FOREIGN TAXES. Foreign governments may impose taxes on a fund and
its investments and these taxes generally will reduce the fund's
distributions. However, an offsetting tax credit or deduction may be
available to you. If so, your tax statement will show more taxable income
or capital gains than were actually distributed by the fund, but will also
show the amount of the available offsetting credit or deduction.
There are tax requirements that all funds must follow in order to avoid
federal taxation. In its effort to adhere to these requirements, a fund may
have to limit its investment activity in some types of instruments.
TRANSACTION DETAILS
THE FUNDS ARE OPEN FOR BUSINESS each day the New York Stock Exchange (NYSE)
is open. Fidelity normally calculates each fund's NAV as of the close of
business of the NYSE, normally 4 p.m. Eastern time.
EACH FUND'S NAV is the value of a single share. The NAV is computed by
adding the value of the fund's investments, cash, and other assets,
subtracting its liabilities, and then dividing the result by the number of
shares outstanding.
Each fund's assets are valued primarily on the basis of market quotations.
Foreign securities are valued on the basis of quotations from the primary
market in which they are traded, and are translated from the local currency
into U.S. dollars using current exchange rates. If quotations are not
readily available, or if the values have been materially affected by events
occurring after the closing of a foreign market, assets are valued by a
method that the Board of Trustees believes accurately reflects fair value.
EACH FUND'S OFFERING PRICE (price to buy one share) and REDEMPTION PRICE
(price to sell one share) are its NAV.
WHEN YOU SIGN YOUR ACCOUNT APPLICATION, you will be asked to certify that
your Social Security or taxpayer identification number is correct and that
you are not subject to 31% backup withholding for failing to report income
to the IRS. If you violate IRS regulations, the IRS can require a fund to
withhold 31% of your taxable distributions and redemptions.
YOU MAY INITIATE MANY TRANSACTIONS BY TELEPHONE. Fidelity may only be
liable for losses resulting from unauthorized transactions if it does not
follow reasonable procedures designed to verify the identity of the caller.
Fidelity will request personalized security codes or other information, and
may also record calls. You should verify the accuracy of your confirmation
statements immediately after you receive them. If you do not want the
ability to redeem and exchange by telephone, call Fidelity for
instructions.
IF YOU ARE UNABLE TO REACH FIDELITY BY PHONE (for example, during periods
of unusual market activity), consider placing your order by mail or by
visiting a Fidelity Investor Center.
EACH FUND RESERVES THE RIGHT TO SUSPEND THE OFFERING OF SHARES for a period
of time. Each fund also reserves the right to reject any specific purchase
order, including certain purchases by exchange. See "Exchange Restrictions"
on page . Purchase orders may be refused if, in FMR's opinion, they
would disrupt management of a fund.
WHEN YOU PLACE AN ORDER TO BUY SHARES, your order will be processed at the
next offering price calculated after your order is received and accepted.
Note the following:
(small solid bullet) All of your purchases must be made in U.S. dollars and
checks must be drawn on U.S. banks.
(small solid bullet) Fidelity does not accept cash.
(small solid bullet) When making a purchase with more than one check, each
check must have a value of at least $50.
(small solid bullet) Each fund reserves the right to limit the number of
checks processed at one time.
(small solid bullet) If your check does not clear, your purchase will be
cancelled and you could be liable for any losses or fees a fund or its
transfer agent has incurred.
(small solid bullet) You begin to earn dividends as of the first business
day following the day of your purchase.
TO AVOID THE COLLECTION PERIOD associated with check and Money Line
purchases, consider buying shares by bank wire, U.S. Postal money order,
U.S. Treasury check, Federal Reserve check, or direct deposit instead.
YOU MAY BUY OR SELL SHARES OF THE FUNDS THROUGH A BROKER, who may charge
you a fee for this service. If you invest through a broker or other
institution, read its program materials for any additional service features
or fees that may apply.
CERTAIN FINANCIAL INSTITUTIONS that have entered into sales agreements with
FDC may enter confirmed purchase orders on behalf of customers by phone,
with payment to follow no later than the time when a fund is priced on the
following business day. If payment is not received by that time, the
financial institution could be held liable for resulting fees or losses.
WHEN YOU PLACE AN ORDER TO SELL SHARES, your shares will be sold at the
next NAV calculated after your request is received and accepted. Note the
following:
(small solid bullet) Normally, redemption proceeds will be mailed to you on
the next business day, but if making immediate payment could adversely
affect a fund, it may take up to seven days to pay you.
(small solid bullet) Shares will earn dividends through the date of
redemption; however, shares redeemed on a Friday or prior to a holiday will
continue to earn dividends until the next business day.
(small solid bullet) Fidelity Money Line redemptions generally will be
credited to your bank account on the second or third business day after
your phone call.
(small solid bullet) Each fund may hold payment on redemptions until it is
reasonably satisfied that investments made by check or Fidelity Money Line
have been collected, which can take up to seven business days.
(small solid bullet) Redemptions may be suspended or payment dates
postponed when the NYSE is closed (other than weekends or holidays), when
trading on the NYSE is restricted, or as permitted by the SEC.
(small solid bullet) If you sell shares by writing a check and the amount
of the check is greater than the value of your account, your check will be
returned to you and you may be subject to additional charges.
THE REDEMPTION FEE for New Markets Income, if applicable, will be deducted
from the amount of your redemption. This fee is paid to the fund rather
than FMR, and it does not apply to shares that were acquired through
reinvestment of distributions. If shares were not all held for the same
length of time, those shares you held longest will be redeemed first for
purposes of determining whether the fee applies.
FIDELITY RESERVES THE RIGHT TO DEDUCT AN ANNUAL MAINTENANCE FEE of $12.00
from accounts with a value of less than $2,500, subject to an annual
maximum charge of $60.00 per shareholder. It is expected that accounts will
be valued on the second Friday in November of each year. Accounts opened
after September 30 will not be subject to the fee for that year. The fee,
which is payable to the transfer agent, is designed to offset in part the
relatively higher costs of servicing smaller accounts. The fee will not be
deducted from retirement accounts (except non-prototype retirement
accounts) , accounts using regular investment plans, or if total assets
in Fidelity funds exceed $50,000. Eligibility for the $50,000 waiver is
determined by aggregating Fidelity mutual fund accounts maintained by FSC
or FBSI which are registered under the same social security number or which
list the same social security number for the custodian of a Uniform
Gifts/Transfers to Minors Act account.
IF YOUR ACCOUNT BALANCE FALLS BELOW $1,000, you will be given 30 days'
notice to reestablish the minimum balance. If you do not increase your
balance, Fidelity reserves the right to close your account and send the
proceeds to you. Your shares will be redeemed at the NAV on the day your
account is closed.
FIDELITY MAY CHARGE A FEE FOR SPECIAL SERVICES, such as providing
historical account documents, that are beyond the normal scope of its
services.
FDC may, at its own expense, provide promotional incentives to qualified
recipients who support the sale of shares of the funds without
reimbursement from the funds. Qualified recipients are securities dealers
who have sold fund shares or others, including banks and other financial
institutions, under special arrangements in connection with FDC's sales
activities. In some instances, these incentives may be offered only to
certain institutions whose representatives provide services in connection
with the sale or expected sale of significant amounts of shares.
EXCHANGE RESTRICTIONS
As a shareholder, you have the privilege of exchanging shares of a fund for
shares of other Fidelity funds. However, you should note the following:
(small solid bullet) The fund you are exchanging into must be registered
for sale in your state.
(small solid bullet) You may only exchange between accounts that are
registered in the same name, address, and taxpayer identification number.
(small solid bullet) Before exchanging into a fund, read its prospectus.
(small solid bullet) If you exchange into a fund with a sales charge, you
pay the percentage-point difference between that fund's sales charge and
any sales charge you have previously paid in connection with the shares you
are exchanging. For example, if you had already paid a sales charge of 2%
on your shares and you exchange them into a fund with a 3% sales charge,
you would pay an additional 1% sales charge.
(small solid bullet) Exchanges may have tax consequences for you.
(small solid bullet) Because excessive trading can hurt fund performance
and shareholders, each fund reserves the right to temporarily or
permanently terminate the exchange privilege of any investor who makes more
than four exchanges out of the fund per calendar year. Accounts under
common ownership or control, including accounts with the same taxpayer
identification number, will be counted together for purposes of the four
exchange limit.
(small solid bullet) The exchange limit may be modified for accounts in
certain institutional retirement plans to conform to plan exchange limits
and Department of Labor regulations. See your plan materials for further
information.
(small solid bullet) Each fund reserves the right to refuse exchange
purchases by any person or group if, in FMR's judgment, the fund would be
unable to invest the money effectively in accordance with its investment
objective and policies, or would otherwise potentially be adversely
affected.
(small solid bullet) Your exchanges may be restricted or refused if a fund
receives or anticipates simultaneous orders affecting significant portions
of the fund's assets. In particular, a pattern of exchanges that coincides
with a "market timing" strategy may be disruptive to a fund.
Although the funds will attempt to give you prior notice whenever they are
reasonably able to do so, they may impose these restrictions at any time.
The funds reserve the right to terminate or modify the exchange privilege
in the future.
OTHER FUNDS MAY HAVE DIFFERENT EXCHANGE RESTRICTIONS, and may impose
administrative fees of up to $7.50 and redemption fees of up to 1.50% on
exchanges. Check each fund's prospectus for details.

This prospectus is printed on recycled paper using soy-based inks.
FIDELITY'S INTERNATIONAL BOND FUNDS
FIDELITY SHORT-TERM WORLD BOND FUND
FIDELITY GLOBAL BOND FUND
FIDELITY NEW MARKETS INCOME FUND
FUNDS OF FIDELITY INVESTMENT TRUST
STATEMENT OF ADDITIONAL INFORMATION
FEBRUARY 26, 1996
This Statement is not a prospectus but should be read in conjunction with
the funds' current Prospectus ( dated February 26, 1996). Please
retain this document for future reference. The funds' financial statements
and financial highlights, included in the Annual Report for the fiscal year
ended December 31, 1995 are incorporated herein by reference. To obtain an
additional copy of the Prospectus or the Annual Report, please call
Fidelity Distributors Corporation at 1-800-544-8888.

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TABLE OF CONTENTS PAGE

Investment Policies and Limitations

Special Considerations Affecting Europe

Special Considerations Affecting Japan, the Pacific Basin, and Southeast Asia

Special Considerations Affecting Canada

Special Considerations Affecting Latin America

Special Considerations Affecting Africa

Portfolio Transactions

Valuation of Portfolio Securities

Performance

Additional Purchase and Redemption Information

Distributions and Taxes

FMR

Trustees and Officers

Management Contracts

Distribution and Service Plans

Contracts with FMR Affiliates

Description of the Trust

Financial Statements

Appendix

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INVESTMENT ADVISER
Fidelity Management & Research Company (FMR)
INVESTMENT SUB-ADVISERS
Fidelity Management & Research (U.K.) Inc. (FMR U.K.)
Fidelity Management & Research (Far East) Inc. (FMR Far East)
Fidelity International Investment Advisors (FIIA)
Fidelity International Investment Advisors (U.K.) Limited (FIIAL U.K.)
Fidelity Investments Japan Ltd. (FIJ) (New Markets Income only)
DISTRIBUTOR
Fidelity Distributors Corporation (FDC)
TRANSFER AGENT
Fidelity Service Co. (FSC)
ITL-ptb-296
INVESTMENT POLICIES AND LIMITATIONS
The following policies and limitations supplement those set forth in the
Prospectus. Unless otherwise noted, whenever an investment policy or
limitation states a maximum percentage of a fund's assets that may be
invested in any security or other asset, or sets forth a policy regarding
quality standards, such standard or percentage limitation will be
determined immediately after and as a result of the fund's acquisition of
such security or other asset. Accordingly, any subsequent change in values,
net assets, or other circumstances will not be considered when determining
whether the investment complies with the fund's investment policies and
limitations.
The fund's fundamental investment policies and limitations cannot be
changed without approval by a "majority of the outstanding voting
securities" (as defined in the Investment Company Act of 1940) of the fund.
However, except for the fundamental investment limitations listed below,
the investment policies and limitations described in this Statement of
Additional Information are not fundamental and may be changed without
shareholder approval.
INVESTMENT LIMITATIONS OF FIDELITY SHORT-TERM WORLD BOND FUND
THE FOLLOWING ARE THE FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS SET FORTH
IN THEIR ENTIRETY. THE FUND MAY NOT:
(1) issue senior securities, except as permitted under the Investment
Company Act of 1940;
(2) sell securities short, unless it owns or has the right to obtain
securities equivalent in kind and amount to the securities sold short, and
provided that transactions in futures contracts and options are not deemed
to constitute selling securities short;
(3) purchase securities on margin, except that the fund may obtain such
short-term credits as are necessary for the clearance of transactions, and
provided that margin payments in connection with futures contracts and
options on futures contracts shall not constitute purchasing securities on
margin;
(4) borrow money, except that the fund may borrow money for temporary or
emergency purposes (not for leveraging or investment) in an amount not
exceeding 33 1/3% of its total assets (including the amount borrowed) less
liabilities (other than borrowings). Any borrowings that come to exceed
this amount will be reduced within three days (not including Sundays and
holidays) to the extent necessary to comply with the 33 1/3% limitation;
(5) underwrite securities issued by others, except to the extent that the
fund may be considered an underwriter within the meaning of the Securities
Act of 1933 in the disposition of restricted securities;
(6) purchase the securities of any issuer (other than securities issued or
guaranteed by the U.S. government or any of its agencies or
instrumentalities) if, as a result, more than 25% of the fund's total
assets would be invested in the securities of companies whose principal
business activities are in the same industry, except that the fund will
invest more than 25% of its total assets in the financial services
industry;
(7) purchase or sell real estate unless acquired as a result of ownership
of securities or other instruments (but this shall not prevent the fund
from investing in securities or other instruments backed by real estate or
securities of companies engaged in the real estate business);
(8) purchase or sell physical commodities unless acquired as a result of
ownership of securities or other instruments (but this shall not prevent
the fund from purchasing or selling options and futures contracts or from
investing in securities or other instruments backed by physical
commodities); or
(9) lend any security or make any other loan if, as a result, more than 33
1/3% of its total assets would be lent to other parties (but this limit
does not apply to purchases of debt securities or to repurchase
agreements).
THE FOLLOWING LIMITATIONS ARE NOT FUNDAMENTAL AND MAY BE CHANGED WITHOUT
SHAREHOLDER APPROVAL.
(i) To meet federal tax requirements for qualification as a "regulated
investment company," the fund limits its investments so that at the close
of each quarter of its taxable year: (a) with regard to at least 50% of
total assets, no more than 5% of total assets are invested in the
securities of a single issuer, and (b) no more than 25% of total assets are
invested in the securities of a single issuer. Limitations (a) and (b) do
not apply to "Government securities" as defined for federal tax purposes.
(ii) The fund may borrow money only (a) from a bank or from a registered
investment company or portfolio for which FMR or an affiliate serves as
investment adviser or (b) by engaging in reverse repurchase agreements with
any party (reverse repurchase agreements are treated as borrowings for
purposes of fundamental investment limitation (4)). The fund will not
purchase any security while borrowings representing more than 5% of its
total assets are outstanding. The fund will not borrow from other funds
advised by FMR or its affiliates if total outstanding borrowings
immediately after such borrowing would exceed 15% of the fund's total
assets.
(iii) The fund does not currently intend to purchase any security if, as a
result, more than 15% of its net assets would be invested in securities
that are deemed to be illiquid because they are subject to legal or
contractual restrictions on resale or because they cannot be sold or
disposed of in the ordinary course of business at approximately the prices
at which they are valued.
(iv) The fund does not currently intend to invest in interests in real
estate investment trusts that are not readily marketable, or to invest in
interests in real estate limited partnerships that are not listed on the
New York Stock Exchange or the American Stock Exchange or traded on the
NASDAQ National Market System.
(v) The fund does not currently intend to lend assets other than securities
to other parties, except by (a) lending money (up to 7.5% of the fund's net
assets) to a registered investment company or portfolio for which FMR or an
affiliate serves as investment adviser or (b) acquiring loans, loan
participations, or other forms of direct debt instruments and, in
connection therewith, assuming any associated unfunded commitments of the
sellers. (This limitation does not apply to purchases of debt securities or
to repurchase agreements.)
(vi) The fund does not currently intend to (a) purchase securities of other
investment companies, except in the open market where no commission except
the ordinary broker's commission is paid, or (b) purchase or retain
securities issued by other open-end investment companies. Limitations (a)
and (b) do not apply to securities received as dividends, through offers of
exchange, or as a result of a reorganization, consolidation, or merger.
(vii) The fund does not currently intend to purchase the securities of any
issuer (other than securities issued or guaranteed by domestic or foreign
governments or political subdivisions thereof) if, as a result, more than
5% of its total assets would be invested in the securities of business
enterprises that, including predecessors, have a record of less than three
years of continuous operation.
(viii) The fund does not currently intend to invest in oil, gas, or other
mineral exploration or development programs or leases.
For purposes of limitation (vii), pass-through entities and other special
purpose vehicles or pools of financial assets, such as issuers of
asset-backed securities or investment companies, are not considered
"business enterprises."
INVESTMENT LIMITATIONS OF FIDELITY GLOBAL BOND FUND
THE FOLLOWING ARE THE FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS SET FORTH
IN THEIR ENTIRETY. THE FUND MAY NOT:
(1) issue senior securities, except as permitted under the Investment
Company Act of 1940 (1940 Act);
(2) borrow money, except that the fund may borrow money for temporary or
emergency purposes (not for leveraging or investment) in an amount not
exceeding 33 1/3% of the value of its total assets (including the amount
borrowed), less liabilities (other than borrowings). Any borrowings that
come to exceed 33 1/3% of the fund's total assets by reason of a decline in
net assets will be reduced within three business days to the extent
necessary to comply with the 33 1/3% limitation;
(3) underwrite securities issued by others (except to the extent that the
fund may be deemed to be an underwriter within the meaning of the
Securities Act of 1933 in the disposition of restricted securities);
(4) purchase the securities of any issuer (other than obligations issued or
guaranteed by the government of the United States or its agencies or
instrumentalities, or by foreign governments or their political
subdivisions, or by supranational organizations) if, as a result, more than
25% of the fund's total assets (taken at current value) would be invested
in the securities of issuers having their principal business activities in
the same industry;
(5) purchase or sell real estate (but this shall not prevent the fund from
investing in marketable securities issued by companies such as real estate
investment trusts which deal in real estate or interests therein and
participation interests in pools of real estate mortgage loans);
(6) purchase or sell physical commodities unless acquired as a result of
ownership of securities or other instruments (but this shall not prevent
the fund from purchasing or selling options and futures contracts or from
investing in securities or other instruments backed by physical
commodities); or
(7) lend any security or make any other loan if, as a result, more than 33
1/3% of its total assets would be lent to other parties, but this
limitation does not apply to purchases of debt securities or to repurchase
agreements.
Investment limitation (2) is construed in conformity with the 1940 Act,
and, accordingly, "three business days" means three days exclusive of
Sundays and holidays.
THE FOLLOWING LIMITATIONS ARE NOT FUNDAMENTAL AND MAY BE CHANGED WITHOUT
SHAREHOLDER APPROVAL.
(i) To meet federal tax requirements for qualification as a "regulated
investment company," the fund limits its investments so that at the close
of each quarter of its taxable year: (a) with regard to at least 50% of
total assets, no more than 5% of total assets are invested in the
securities of a single issuer, and (b) no more than 25% of total assets are
invested in the securities of a single issuer. Limitations (a) and (b) do
not apply to "Government securities" as defined for federal tax purposes.
(ii) The fund does not currently intend to sell securities short, unless it
owns or has the right to obtain securities equivalent in kind and amount to
the securities sold short, and provided that transactions in futures
contracts and options are not deemed to constitute selling securities
short.
(iii) The fund does not currently intend to purchase securities on margin,
except that the fund may obtain such short-term credits as are necessary
for the clearance of transactions, and provided that margin payments in
connection with futures contracts and options on futures contracts shall
not constitute purchasing securities on margin.
(iv) The fund may borrow money only (a) from a bank or from a registered
investment company or portfolio for which FMR or an affiliate serves as
investment adviser or (b) by engaging in reverse repurchase agreements with
any party (reverse repurchase agreements are treated as borrowings for
purposes of fundamental investment limitation (2)). The fund will not
purchase any security while borrowings representing more than 5% of its
total assets are outstanding. The fund will not borrow from other funds
advised by FMR or its affiliates if total outstanding borrowings
immediately after such borrowing would exceed 15% of the fund's total
assets.
(v) The fund does not currently intend to purchase any security if, as a
result, more than 15% of its net assets would be invested in securities
that are deemed to be illiquid because they are subject to legal or
contractual restrictions on resale or because they cannot be sold or
disposed of in the ordinary course of business at approximately the prices
at which they are valued.
(vi) The fund does not currently intend to invest in interests in real
estate investment trusts that are not readily marketable, or to invest in
interests in real estate limited partnerships that are not listed on the
New York Stock Exchange or the American Stock Exchange or traded on the
NASDAQ National Market System.
(vii) The fund does not currently intend to lend assets other than
securities to other parties, except by (a) lending money (up to 7.5% of the
fund's net assets) to a registered investment company or portfolio for
which FMR or an affiliate serves as investment adviser or (b) acquiring
loans, loan participations, or other forms of direct debt instruments and,
in connection therewith, assuming any associated unfunded commitments of
the sellers. (This limitation does not apply to purchases of debt
securities or to repurchase agreements.)
(viii) The fund does not currently intend to (a) purchase securities of
other investment companies, except in the open market where no commission
except the ordinary broker's commission is paid, or (b) purchase or retain
securities issued by other open-end investment companies. Limitations (a)
and (b) do not apply to securities received as dividends, through offers of
exchange, or as a result of a reorganization, consolidation, or merger.
(ix) The fund does not currently intend to purchase the securities of any
issuer (other than securities issued or guaranteed by domestic or foreign
governments or political subdivisions thereof) if, as a result, more than
5% of its total assets would be invested in the securities of business
enterprises that, including predecessors, have a record of less than three
years of continuous operation.
(x) The fund does not currently intend to purchase warrants, valued at the
lower of cost or market, in excess of 5% of the fund's net assets.
Included in that amount, but not to exceed 2% of net assets, are warrants
whose underlying securities are not traded on principal domestic or foreign
exchanges. Warrants acquired by the fund in units or attached to securities
are not subject to these restrictions.
(xi) The fund does not currently intend to invest in oil, gas, or other
mineral exploration or development programs or leases.
For purposes of limitation (ix), pass-through entities and other special
purpose vehicles or pools of financial assets, such as issuers of
asset-backed securities or investment companies, are not considered
"business enterprises."
INVESTMENT LIMITATIONS OF FIDELITY NEW MARKETS INCOME FUND
THE FOLLOWING ARE THE FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS SET FORTH
IN THEIR ENTIRETY. THE FUND MAY NOT:
(1) issue senior securities, except as permitted under the Investment
Company Act of 1940;
(2) borrow money, except that the fund may borrow money for temporary or
emergency purposes (not for leveraging or investment) in an amount not
exceeding 33 1/3% of its total assets (including the amount borrowed) less
liabilities (other than borrowings). Any borrowings that come to exceed
this amount will be reduced within three days (not including Sundays and
holidays) to the extent necessary to comply with the 33 1/3% limitation;
(3) underwrite securities issued by others, except to the extent that the
fund may be considered an underwriter within the meaning of the Securities
Act of 1933 in the disposition of restricted securities;
(4) purchase the securities of any issuer (other than securities issued or
guaranteed by the U.S. government or any of its agencies or
instrumentalities) if, as a result, more than 25% of the fund's total
assets would be invested in the securities of companies whose principal
business activities are in the same industry;
(5) purchase or sell real estate unless acquired as a result of ownership
of securities or other instruments (but this shall not prevent the fund
from investing in securities or other instruments backed by real estate or
securities of companies engaged in the real estate business);
(6) purchase or sell physical commodities unless acquired as a result of
ownership of securities or other instruments (but this shall not prevent
the fund from purchasing or selling options and futures contracts or from
investing in securities or other instruments backed by physical
commodities); or
(7) lend any security or make any other loan if, as a result, more than 33
1/3% of its total assets would be lent to other parties, but this
limitation does not apply to purchases of debt securities or to repurchase
agreements.
THE FOLLOWING INVESTMENT LIMITATIONS ARE NOT FUNDAMENTAL AND MAY BE CHANGED
WITHOUT SHAREHOLDER APPROVAL.
(i) To meet federal tax requirements for qualification as a "regulated
investment company," the fund limits its investments so that at the close
of each quarter of its taxable year: (a) with regard to at least 50% of
total assets, no more than 5% of total assets are invested in the
securities of a single issuer, and (b) no more than 25% of total assets are
invested in the securities of a single issuer. Limitations (a) and (b) do
not apply to "Government securities" as defined for federal tax purposes.
(ii) The fund does not currently intend to sell securities short, unless it
owns or has the right to obtain securities equivalent in kind and amount to
the securities sold short, and provided that transactions in futures
contracts and options are not deemed to constitute selling securities
short.
(iii) The fund does not currently intend to purchase securities on margin,
except that the fund may obtain such short-term credits as are necessary
for the clearance of transactions, and provided that margin payments in
connection with futures contracts and options on futures contracts shall
not constitute purchasing securities on margin.
(iv) The fund may borrow money only (a) from a bank or from a registered
investment company or portfolio for which FMR or an affiliate serves as
investment adviser or (b) by engaging in reverse repurchase agreements with
any party (reverse repurchase agreements are treated as borrowings for
purposes of fundamental investment limitation (2)). The fund will not
purchase any security while borrowings representing more than 5% of its
total assets are outstanding. The fund will not borrow from other funds
advised by FMR or its affiliates if total outstanding borrowings
immediately after such borrowing would exceed 15% of the fund's total
assets.
(v) The fund does not currently intend to purchase any security if, as a
result, more than 15% of its net assets would be invested in securities
that are deemed to be illiquid because they are subject to legal or
contractual restrictions on resale or because they cannot be sold or
disposed of in the ordinary course of business at approximately the prices
at which they are valued.
(vi) The fund does not currently intend to invest in interests in real
estate investment trusts that are not readily marketable, or to invest in
interests in real estate limited partnerships that are not listed on the
New York Stock Exchange or the American Stock Exchange or traded on the
NASDAQ National Market System.
(vii) The fund does not currently intend to lend assets other than
securities to other parties, except by (a) lending money (up to 7.5% of the
fund's net assets) to a registered investment company or portfolio for
which FMR or an affiliate serves as investment adviser or (b) acquiring
loans, loan participations, or other forms of direct debt instruments and,
in connection therewith, assuming any associated unfunded commitments of
the sellers. (This limitation does not apply to purchases of debt
securities or to repurchase agreements).
(viii) The fund does not currently intend to (a) purchase securities of
other investment companies, except in the open market where no commission
except the ordinary broker's commission is paid, or (b) purchase or retain
securities issued by other open-end investment companies. Limitations (a)
and (b) do not apply to securities received as dividends, through offers of
exchange, or as a result of a reorganization, consolidation, or merger.
(ix) The fund does not currently intend to purchase the securities of any
issuer (other than securities issued or guaranteed by domestic or foreign
governments or political subdivisions thereof) if, as a result, more than
5% of its total assets would be invested in the securities of business
enterprises that, including predecessors, have a record of less than three
years of continuous operation.
(x) The fund does not currently intend to purchase warrants, valued at the
lower of cost or market, in excess of 5% of the fund's net assets. Included
in that amount, but not to exceed 2% of net assets, are warrants whose
underlying securities are not traded on principal domestic or foreign
exchanges. Warrants acquired by the fund in units or attached to securities
are not subject to these restrictions.
(xi) The fund does not currently intend to invest in oil, gas, or other
mineral exploration or development programs or leases.
For purposes of limitation (ix), pass-through entities and other special
purpose vehicles or pools of financial assets, such as issuers of
asset-backed securities or investment companies, are not considered
"business enterprises."
For the funds' limitations on futures and options transactions, see the
section entitled "Limitations on Futures and Options Transactions" on page
.
Each fund's investments must be consistent with its investment objective
and policies. Accordingly, not all of the security types and investment
techniques which follow are eligible investments for each of the funds.
AFFILIATED BANK TRANSACTIONS. A fund may engage in transactions with
financial institutions that are, or may be considered to be, "affiliated
persons" of the fund under the Investment Company Act of 1940. These
transactions may include repurchase agreements with custodian banks;
short-term obligations of, and repurchase agreements with, the 50 largest
U.S. banks (measured by deposits); municipal securities; U.S. government
securities with affiliated financial institutions that are primary dealers
in these securities; short-term currency transactions; and short-term
borrowings. In accordance with exemptive orders issued by the Securities
and Exchange Commission (SEC), the Board of Trustees has established
and periodically reviews procedures applicable to transactions involving
affiliated financial institutions.
DELAYED-DELIVERY TRANSACTIONS. Each fund may buy and sell securities on
a delayed-delivery or when-issued basis. These transactions involve a
commitment by a fund to purchase or sell specific securities at a
predetermined price or yield, with payment and delivery taking place after
the customary settlement period for that type of security. Typically, no
interest accrues to the purchaser until the security is delivered. The
funds may receive fees for entering into delayed-delivery transactions.
When purchasing securities on a delayed-delivery basis, each fund assumes
the rights and risks of ownership, including the risk of price and yield
fluctuations. Because a fund is not required to pay for securities until
the delivery date, these risks are in addition to the risks associated with
the fund's other investments. If a fund remains substantially fully
invested at a time when delayed-delivery purchases are outstanding, the
delayed-delivery purchases may result in a form of leverage. When
delayed-delivery purchases are outstanding, the fund will set aside
appropriate liquid assets in a segregated custodial account to cover its
purchase obligations. When a fund has sold a security on a delayed-delivery
basis, the fund does not participate in further gains or losses with
respect to the security. If the other party to a delayed-delivery
transaction fails to deliver or pay for the securities, the fund could miss
a favorable price or yield opportunity, or could suffer a loss.
Each fund may renegotiate delayed-delivery transactions after they are
entered into, and may sell underlying securities before they are delivered,
which may result in capital gains or losses.
EXPOSURE TO FOREIGN MARKETS. Foreign securities, foreign currencies, and
securities issued by U.S. entities with substantial foreign operations may
involve significant risks in addition to the risks inherent in U.S.
investments. The value of securities denominated in foreign currencies and
of dividends and interest paid with respect to such securities will
fluctuate based on the relative strength of the U.S. dollar.
Foreign investments involve a risk of local political, economic, or social
instability, military action or unrest, or adverse diplomatic developments,
and may be affected by actions of foreign governments adverse to the
interests of U.S. investors. Such actions may include the possibility of
expropriation or nationalization of assets, confiscatory taxation,
restrictions on U.S. investment or on the ability to repatriate assets or
convert currency into U.S. dollars, or other government intervention. There
is no assurance that FMR will be able to anticipate these potential events
or counter their effects. These risks are magnified for investments in
developing countries, which may have relatively unstable governments,
economies based on only a few industries, and securities markets that trade
a small number of securities.
Economies of particular countries or areas of the world may differ
favorably or unfavorably from the economy of the United States. Foreign
markets may offer less protection to investors than U.S. markets. It is
anticipated that in most cases the best available market for foreign
securities will be on an exchange or in over-the-counter markets located
outside of the United States. Foreign stock markets, while growing in
volume and sophistication, are generally not as developed as those in the
United States, and securities of some foreign issuers (particularly those
located in developing countries) may be less liquid and more volatile than
securities of comparable U.S. issuers. Foreign security trading practices,
including those involving securities settlement where fund assets may be
released prior to receipt of payment, may result in increased risk in the
event of a failed trade or the insolvency of a foreign broker-dealer, and
may involve substantial delays. In addition, the costs of foreign
investing, including withholding taxes, brokerage commissions and custodial
costs, are generally higher than for U.S. investors. In general, there is
less overall governmental supervision and regulation of securities
exchanges, brokers, and listed companies than in the United States. It may
also be difficult to enforce legal rights in foreign countries. Foreign
issuers are generally not bound by uniform accounting, auditing, and
financial reporting requirements and standards of practice comparable to
those applicable to U.S. issuers.
Some foreign securities impose restrictions on transfer within the United
States or to U.S. persons. Although securities subject to such transfer
restrictions may be marketable abroad, they may be less liquid than foreign
securities of the same class that are not subject to such restrictions.
American Depository Receipts (ADR's) as well as other "hybrid" forms of
ADRs including European Depository Receipts (EDRs) and Global Depository
Receipts (GDRs), are certificates evidencing ownership of shares of a
foreign issuer. These certificates are issued by depository banks and
generally trade on an established market in the United States or elsewhere.
The underlying shares are held in trust by a custodian bank or similar
financial institution in the issuer's home country. The depository bank may
not have physical custody of the underlying securities at all times and may
charge fees for various services, including forwarding dividends and
interest and corporate actions. ADRs are an alternative to directly
purchasing the underlying foreign securities in their national markets and
currencies. However, ADRs continue to be subject to many of the risks
associated with investing directly in foreign securities. These risks
include foreign exchange risk as well as the political and economic risks
of the underlying issuer's country.
Currently, the countries not considered to have emerging market economies
are as follows: Australia, Austria, Belgium, Canada, Denmark, Finland,
France, Germany, Ireland, Italy, Japan, the Netherlands, New Zealand,
Norway, Spain, Sweden, Switzerland, the United Kingdom, and the United
States.
The risks of international investing may be intensified in the case of
investments in emerging markets or countries with limited or developing
capital markets. Security prices in emerging markets can be significantly
more volatile than in the more developed nations of the world, reflecting
the greater uncertainties of investing in less established markets and
economies. In particular, countries with emerging markets may have
relatively unstable governments, present the risk of nationalization of
businesses, restrictions on foreign ownership, or prohibitions of
repatriation of assets, and may have less protection of property rights
than more developed countries. The economies of countries with emerging
markets may be predominantly based on only a few industries, may be highly
vulnerable to changes in local or global trade conditions, and may suffer
from extreme and volatile debt burdens or inflation rates. Local securities
markets may trade a small number of securities and may be unable to respond
effectively to increases in trading volume, potentially making prompt
liquidation of substantial holdings difficult or impossible at times.
Securities of issuers located in countries with emerging markets may have
limited marketability and may be subject to more abrupt or erratic price
movements.
FOREIGN CURRENCY TRANSACTIONS. The funds may conduct foreign currency
transactions on a spot (i.e., cash) basis or by entering into forward
contracts to purchase or sell foreign currencies at a future date and
price. The funds will convert currency on a spot basis from time to time,
and investors should be aware of the costs of currency conversion. Although
foreign exchange dealers generally do not charge a fee for conversion, they
do realize a profit based on the difference between the prices at which
they are buying and selling various currencies. Thus, a dealer may offer to
sell a foreign currency to the fund at one rate, while offering a lesser
rate of exchange should the fund desire to resell that currency to the
dealer. Forward contracts are generally traded in an interbank market
conducted directly between currency traders (usually large commercial
banks) and their customers. The parties to a forward contract may agree to
offset or terminate the contract before its maturity, or may hold the
contract to maturity and complete the contemplated currency exchange.
Each fund may use currency forward contracts for any purpose consistent
with its investment objective. The following discussion summarizes the
principal currency management strategies involving forward contracts that
could be used by each fund. The funds may also use swap agreements, indexed
securities, and options and futures contracts relating to foreign
currencies for the same purposes.
When a fund agrees to buy or sell a security denominated in a foreign
currency, it may desire to "lock in" the U.S. dollar price of the security.
By entering into a forward contract for the purchase or sale, for a fixed
amount of U.S. dollars, of the amount of foreign currency involved in the
underlying security transaction, the fund will be able to protect itself
against an adverse change in foreign currency values between the date the
security is purchased or sold and the date on which payment is made or
received. This technique is sometimes referred to as a "settlement hedge"
or "transaction hedge." The funds may also enter into forward contracts to
purchase or sell a foreign currency in anticipation of future purchases or
sales of securities denominated in foreign currency, even if the specific
investments have not yet been selected by FMR.
The funds may also use forward contracts to hedge against a decline in the
value of existing investments denominated in foreign currency. For example,
if a fund owned securities denominated in pounds sterling, it could enter
into a forward contract to sell pounds sterling in return for U.S. dollars
to hedge against possible declines in the pound's value. Such a hedge,
sometimes referred to as a "position hedge," would tend to offset both
positive and negative currency fluctuations, but would not offset changes
in security values caused by other factors. A fund could also hedge the
position by selling another currency expected to perform similarly to the
pound sterling - for example, by entering into a forward contract to sell
Deutschemarks or European Currency Units in return for U.S. dollars. This
type of hedge, sometimes referred to as a "proxy hedge," could offer
advantages in terms of cost, yield, or efficiency, but generally would not
hedge currency exposure as effectively as a simple hedge into U.S. dollars.
Proxy hedges may result in losses if the currency used to hedge does not
perform similarly to the currency in which the hedged securities are
denominated.
Each fund may enter into forward contracts to shift its investment exposure
from one currency into another. This may include shifting exposure from
U.S. dollars to a foreign currency, or from one foreign currency to another
foreign currency. For example, if a fund held investments denominated in
Deutschemarks, the fund could enter into forward contracts to sell
Deutschemarks and purchase Swiss Francs. This type of strategy, sometimes
known as a "cross-hedge," will tend to reduce or eliminate exposure to the
currency that is sold, and increase exposure to the currency that is
purchased, much as if the fund had sold a security denominated in one
currency and purchased an equivalent security denominated in another.
Cross-hedges protect against losses resulting from a decline in the hedged
currency, but will cause the fund to assume the risk of fluctuations in the
value of the currency it purchases.
Under certain conditions, SEC guidelines require mutual funds to set aside
appropriate liquid assets in a segregated custodial account to cover
currency forward contracts. As required by SEC guidelines, the funds will
segregate assets to cover currency forward contracts, if any, whose purpose
is essentially speculative. The funds will not segregate assets to cover
forward contracts entered into for hedging purposes, including settlement
hedges, position hedges, and proxy hedges.
Successful use of currency management strategies will depend on FMR's skill
in analyzing and predicting currency values. Currency management strategies
may substantially change a fund's investment exposure to changes in
currency exchange rates, and could result in losses to the fund if
currencies do not perform as FMR anticipates. For example, if a currency's
value rose at a time when FMR had hedged a fund by selling that currency in
exchange for dollars, the fund would be unable to participate in the
currency's appreciation. If FMR hedges currency exposure through proxy
hedges, a fund could realize currency losses from the hedge and the
security position at the same time if the two currencies do not move in
tandem. Similarly, if FMR increases a fund's exposure to a foreign
currency, and that currency's value declines, the fund will realize a loss.
There is no assurance that FMR's use of currency management strategies will
be advantageous to the funds or that it will hedge at an appropriate time.
FOREIGN REPURCHASE AGREEMENTS. Foreign repurchase agreements may include
agreements to purchase and sell foreign securities in exchange for fixed
U.S. dollar amounts, or in exchange for specified amounts of foreign
currency. Unlike typical U.S. repurchase agreements, foreign repurchase
agreements may not be fully collateralized at all times. The value of a
security purchased by a fund may be more or less than the price at which
the counterparty has agreed to repurchase the security. In the event of
default by the counterparty, the fund may suffer a loss if the value of the
security purchased is less than the agreed-upon repurchase price, or if the
fund is unable to successfully assert a claim to the collateral under
foreign laws. As a result, foreign repurchase agreements may involve higher
credit risks than repurchase agreements in U.S. markets, as well as risks
associated with currency fluctuations. In addition, as with other emerging
market investments, repurchase agreements with counterparties located in
emerging markets or relating to emerging markets may involve issuers or
counterparties with lower credit ratings than typical U.S. repurchase
agreements.
FUNDS' RIGHTS AS A SHAREHOLDER. The funds do not intend to direct
or administer the day-to-day operations of any company. Each fund, however,
may exercise its rights as a shareholder and may communicate its views on
important matters of policy to management, the Board of Directors, and
shareholders of a company when FMR determines that such matters could have
a significant effect on the value of the fund's investment in the company.
The activities that a fund may engage in, either individually or in
conjunction with others, may include, among others, supporting or opposing
proposed changes in a company's corporate structure or business activities;
seeking changes in a company's directors or management; seeking changes in
a company's direction or policies; seeking the sale or reorganization of
the company or a portion of its assets; or supporting or opposing third
party takeover efforts. This area of corporate activity is increasingly
prone to litigation and it is possible that a fund could be involved in
lawsuits related to such activities. FMR will monitor such activities with
a view to mitigating, to the extent possible, the risk of litigation
against a fund and the risk of actual liability if a fund is involved in
litigation. No guarantee can be made, however, that litigation against a
fund will not be undertaken or liabilities incurred.
FUTURES AND OPTIONS. The following sections pertain to futures and
options: Asset Coverage for Futures and Options Positions, Combined
Positions, Correlation of Price Changes, Futures Contracts, Futures Margin
Payments, Limitations on Futures and Options Transactions, Liquidity of
Options and Futures Contracts, Options and Futures Relating to Foreign
Currencies, OTC Options, Purchasing Put and Call Options, and Writing Put
and Call Options.
ASSET COVERAGE FOR FUTURES AND OPTIONS POSITIONS. The funds will comply
with guidelines established by the Securities and Exchange Commission with
respect to coverage of options and futures strategies by mutual funds, and
if the guidelines so require will set aside appropriate liquid assets in a
segregated custodial account in the amount prescribed. Securities held in a
segregated account cannot be sold while the futures or option strategy is
outstanding, unless they are replaced with other suitable assets. As a
result, there is a possibility that segregation of a large percentage of a
fund's assets could impede portfolio management or the fund's ability to
meet redemption requests or other current obligations.
COMBINED POSITIONS. A fund may purchase and write options in combination
with each other, or in combination with futures or forward contracts, to
adjust the risk and return characteristics of the overall position. For
example, a fund may purchase a put option and write a call option on the
same underlying instrument, in order to construct a combined position whose
risk and return characteristics are similar to selling a futures contract.
Another possible combined position would involve writing a call option at
one strike price and buying a call option at a lower price, in order to
reduce the risk of the written call option in the event of a substantial
price increase. Because combined options positions involve multiple trades,
they result in higher transaction costs and may be more difficult to open
and close out.
CORRELATION OF PRICE CHANGES. Because there are a limited number of types
of exchange-traded options and futures contracts, it is likely that the
standardized contracts available will not match a fund's current or
anticipated investments exactly. The funds may invest in options and
futures contracts based on securities with different issuers, maturities,
or other characteristics from the securities in which they typically
invest, which involves a risk that the options or futures position will not
track the performance of a fund's other investments.
Options and futures prices can also diverge from the prices of their
underlying instruments, even if the underlying instruments match a fund's
investments well. Options and futures prices are affected by such factors
as current and anticipated short-term interest rates, changes in volatility
of the underlying instrument, and the time remaining until expiration of
the contract, which may not affect security prices the same way. Imperfect
correlation may also result from differing levels of demand in the options
and futures markets and the securities markets, from structural differences
in how options and futures and securities are traded, or from imposition of
daily price fluctuation limits or trading halts. A fund may purchase or
sell options and futures contracts with a greater or lesser value than the
securities it wishes to hedge or intends to purchase in order to attempt to
compensate for differences in volatility between the contract and the
securities, although this may not be successful in all cases. If price
changes in a fund's options or futures positions are poorly correlated with
its other investments, the positions may fail to produce anticipated gains
or result in losses that are not offset by gains in other investments.
FUTURES CONTRACTS. When a fund purchases a futures contract, it agrees to
purchase a specified underlying instrument at a specified future date. When
a fund sells a futures contract, it agrees to sell the underlying
instrument at a specified future date. The price at which the purchase and
sale will take place is fixed when the fund enters into the contract.
Futures can be held until their delivery dates, or can be closed out before
then if a liquid secondary market is available.
The value of a futures contract tends to increase and decrease in tandem
with the value of its underlying instrument. Therefore, purchasing futures
contracts will tend to increase a fund's exposure to positive and negative
price fluctuations in the underlying instrument, much as if it had
purchased the underlying instrument directly. When a fund sells a futures
contract, by contrast, the value of its futures position will tend to move
in a direction contrary to the market. Selling futures contracts,
therefore, will tend to offset both positive and negative market price
changes, much as if the underlying instrument had been sold.
FUTURES MARGIN PAYMENTS. The purchaser or seller of a futures contract is
not required to deliver or pay for the underlying instrument unless the
contract is held until the delivery date. However, both the purchaser and
seller are required to deposit "initial margin" with a futures broker,
known as a futures commission merchant (FCM), when the contract is entered
into. Initial margin deposits are typically equal to a percentage of the
contract's value. If the value of either party's position declines, that
party will be required to make additional "variation margin" payments to
settle the change in value on a daily basis. The party that has a gain may
be entitled to receive all or a portion of this amount. Initial and
variation margin payments do not constitute purchasing securities on margin
for purposes of a fund's investment limitations. In the event of the
bankruptcy of an FCM that holds margin on behalf of a fund, the fund may be
entitled to return of margin owed to it only in proportion to the amount
received by the FCM's other customers, potentially resulting in losses to
the fund.
LIMITATIONS ON FUTURES AND OPTIONS TRANSACTIONS. Each fund has filed a
notice of eligibility for exclusion from the definition of the term
"commodity pool operator" with the Commodity Futures Trading Commission
(CFTC) and the National Futures Association, which regulate trading in the
futures markets. The funds intend to comply with Rule 4.5 under the
Commodity Exchange Act, which limits the extent to which the funds can
commit assets to initial margin deposits and option premiums.
In addition, each fund will not: (a) sell futures contracts, purchase put
options, or write call options if, as a result, more than 25% of the fund's
total assets would be hedged with futures and options under normal
conditions; (b) purchase futures contracts or write put options if, as a
result, the fund's total obligations upon settlement or exercise of
purchased futures contracts and written put options would exceed 25% of its
total assets; or (c) purchase call options if, as a result, the current
value of option premiums for call options purchased by the fund would
exceed 5% of the fund's total assets. These limitations do not apply to
options attached to or acquired or traded together with their underlying
securities, and do not apply to securities that incorporate features
similar to options.
The above limitations on the funds' investments in futures contracts and
options, and the funds' policies regarding futures contracts and options
discussed elsewhere in this Statement of Additional Information, may be
changed as regulatory agencies permit.
LIQUIDITY OF OPTIONS AND FUTURES CONTRACTS. There is no assurance a liquid
secondary market will exist for any particular options or futures contract
at any particular time. Options may have relatively low trading volume and
liquidity if their strike prices are not close to the underlying
instrument's current price. In addition, exchanges may establish daily
price fluctuation limits for options and futures contracts, and may halt
trading if a contract's price moves upward or downward more than the limit
in a given day. On volatile trading days when the price fluctuation limit
is reached or a trading halt is imposed, it may be impossible for a fund to
enter into new positions or close out existing positions. If the secondary
market for a contract is not liquid because of price fluctuation limits or
otherwise, it could prevent prompt liquidation of unfavorable positions,
and potentially could require a fund to continue to hold a position until
delivery or expiration regardless of changes in its value. As a result, a
fund's access to other assets held to cover its options or futures
positions could also be impaired.
OPTIONS AND FUTURES RELATING TO FOREIGN CURRENCIES. Currency futures
contracts are similar to forward currency exchange contracts, except that
they are traded on exchanges (and have margin requirements) and are
standardized as to contract size and delivery date. Most currency futures
contracts call for payment or delivery in U.S. dollars. The underlying
instrument of a currency option may be a foreign currency, which generally
is purchased or delivered in exchange for U.S. dollars, or may be a futures
contract. The purchaser of a currency call obtains the right to purchase
the underlying currency, and the purchaser of a currency put obtains the
right to sell the underlying currency.
The uses and risks of currency options and futures are similar to options
and futures relating to securities or indices, as discussed above. The
funds may purchase and sell currency futures and may purchase and write
currency options to increase or decrease their exposure to different
foreign currencies. A fund may also purchase and write currency options in
conjunction with each other or with currency futures or forward contracts.
Currency futures and options values can be expected to correlate with
exchange rates, but may not reflect other factors that affect the value of
a fund's investments. A currency hedge, for example, should protect a
Yen-denominated security from a decline in the Yen, but will not protect a
fund against a price decline resulting from deterioration in the issuer's
creditworthiness. Because the value of a fund's foreign-denominated
investments changes in response to many factors other than exchange rates,
it may not be possible to match the amount of currency options and futures
to the value of the fund's investments exactly over time.
OTC OPTIONS. Unlike exchange-traded options, which are standardized with
respect to the underlying instrument, expiration date, contract size, and
strike price, the terms of over-the-counter (OTC) options (options not
traded on exchanges) generally are established through negotiation with the
other party to the option contract. While this type of arrangement allows
the funds greater flexibility to tailor an option to its needs, OTC options
generally involve greater credit risk than exchange-traded options, which
are guaranteed by the clearing organization of the exchanges where they are
traded.
PURCHASING PUT AND CALL OPTIONS. By purchasing a put option, a fund obtains
the right (but not the obligation) to sell the option's underlying
instrument at a fixed strike price. In return for this right, the fund pays
the current market price for the option (known as the option premium).
Options have various types of underlying instruments, including specific
securities, indices of securities prices, and futures contracts. The fund
may terminate its position in a put option it has purchased by allowing it
to expire or by exercising the option. If the option is allowed to expire,
the fund will lose the entire premium it paid. If the fund exercises the
option, it completes the sale of the underlying instrument at the strike
price. A fund may also terminate a put option position by closing it out in
the secondary market at its current price, if a liquid secondary market
exists.
The buyer of a typical put option can expect to realize a gain if security
prices fall substantially. However, if the underlying instrument's price
does not fall enough to offset the cost of purchasing the option, a put
buyer can expect to suffer a loss (limited to the amount of the premium
paid, plus related transaction costs).
The features of call options are essentially the same as those of put
options, except that the purchaser of a call option obtains the right to
purchase, rather than sell, the underlying instrument at the option's
strike price. A call buyer typically attempts to participate in potential
price increases of the underlying instrument with risk limited to the cost
of the option if security prices fall. At the same time, the buyer can
expect to suffer a loss if security prices do not rise sufficiently to
offset the cost of the option.
WRITING PUT AND CALL OPTIONS. When a fund writes a put option, it takes the
opposite side of the transaction from the option's purchaser. In return for
receipt of the premium, the fund assumes the obligation to pay the strike
price for the option's underlying instrument if the other party to the
option chooses to exercise it. When writing an option on a futures
contract, the fund will be required to make margin payments to an FCM as
described above for futures contracts. A fund may seek to terminate its
position in a put option it writes before exercise by closing out the
option in the secondary market at its current price. If the secondary
market is not liquid for a put option the fund has written, however, the
fund must continue to be prepared to pay the strike price while the option
is outstanding, regardless of price changes, and must continue to set aside
assets to cover its position.
If security prices rise, a put writer would generally expect to profit,
although its gain would be limited to the amount of the premium it
received. If security prices remain the same over time, it is likely that
the writer will also profit, because it should be able to close out the
option at a lower price. If security prices fall, the put writer would
expect to suffer a loss. This loss should be less than the loss from
purchasing the underlying instrument directly, however, because the premium
received for writing the option should mitigate the effects of the decline.
Writing a call option obligates a fund to sell or deliver the option's
underlying instrument, in return for the strike price, upon exercise of the
option. The characteristics of writing call options are similar to those of
writing put options, except that writing calls generally is a profitable
strategy if prices remain the same or fall. Through receipt of the option
premium, a call writer mitigates the effects of a price decline. At the
same time, because a call writer must be prepared to deliver the underlying
instrument in return for the strike price, even if its current value is
greater, a call writer gives up some ability to participate in security
price increases.
ILLIQUID INVESTMENTS are investments that cannot be sold or disposed of in
the ordinary course of business at approximately the prices at which they
are valued. Under the supervision of the Board of Trustees, FMR determines
the liquidity of a fund's investments and, through reports from FMR, the
Board monitors investments in illiquid instruments. In determining the
liquidity of a fund's investments, FMR may consider various factors,
including (1) the frequency of trades and quotations, (2) the number of
dealers and prospective purchasers in the marketplace, (3) dealer
undertakings to make a market, (4) the nature of the security (including
any demand or tender features), and (5) the nature of the marketplace for
trades (including the ability to assign or offset the fund's rights and
obligations relating to the investment).
Investments currently considered by a fund to be illiquid include
repurchase agreements not entitling the holder to payment of principal and
interest within seven days, non-government stripped fixed-rate
mortgage-backed securities, and over-the-counter options. Also, FMR may
determine some restricted securities, government-stripped fixed-rate
mortgage-backed securities, loans and other direct debt instruments,
emerging market securities, and swap agreements to be illiquid. However,
with respect to over-the-counter options a fund writes, all or a portion of
the value of the underlying instrument may be illiquid depending on the
assets held to cover the option and the nature and terms of any agreement
the fund may have to close out the option before expiration.
In the absence of market quotations, illiquid investments are priced at
fair value as determined in good faith by a committee appointed by the
Board of Trustees. If through a change in values, net assets, or other
circumstances, a fund were in a position where more than 15% of its net
assets was invested in illiquid securities, it would seek to take
appropriate steps to protect liquidity.
INDEXED SECURITIES. Each fund may purchase securities whose prices are
indexed to the prices of other securities, securities indices, currencies,
precious metals or other commodities, or other financial indicators.
Indexed securities typically, but not always, are debt securities or
deposits whose value at maturity or coupon rate is determined by reference
to a specific instrument or statistic. Gold-indexed securities, for
example, typically provide for a maturity value that depends on the price
of gold, resulting in a security whose price tends to rise and fall
together with gold prices. Currency-indexed securities typically are
short-term to intermediate-term debt securities whose maturity values or
interest rates are determined by reference to the values of one or more
specified foreign currencies, and may offer higher yields than U.S.
dollar-denominated securities of equivalent issuers. Currency-indexed
securities may be positively or negatively indexed; that is, their maturity
value may increase when the specified currency value increases, resulting
in a security that performs similarly to a foreign-denominated instrument,
or their maturity value may decline when foreign currencies increase,
resulting in a security whose price characteristics are similar to a put on
the underlying currency. Currency-indexed securities may also have prices
that depend on the values of a number of different foreign currencies
relative to each other.
The performance of indexed securities depends to a great extent on the
performance of the security, currency, or other instrument to which they
are indexed, and may also be influenced by interest rate changes in the
United States and abroad. At the same time, indexed securities are subject
to the credit risks associated with the issuer of the security, and their
values may decline substantially if the issuer's creditworthiness
deteriorates. Recent issuers of indexed securities have included banks,
corporations, and certain U.S. government agencies. Indexed securities may
be more volatile than the underlying instruments.
INTERFUND BORROWING AND LENDING PROGRAM. Pursuant to an exemptive order
issued by the SEC, each fund has received permission to lend money to, and
borrow money from, other funds advised by FMR or its affiliates. Interfund
loans and borrowings normally extend overnight, but can have a maximum
duration of seven days. Loans may be called on one day's notice. A fund
will lend through the program only when the returns are higher than those
available from other short-term instruments (such as repurchase
agreements), and will borrow through the program only when the costs are
equal to or lower than the cost of bank loans. A fund may have to borrow
from a bank at a higher interest rate if an interfund loan is called or not
renewed. Any delay in repayment to a lending fund could result in a lost
investment opportunity or additional borrowing costs.
ISSUER LOCATION. FMR determines where an issuer is located by
looking at such factors as its country of organization, the primary trading
market for its securities, and the location of its assets, personnel,
sales, and earnings. The issuer of a security is located in a particular
country if: 1) the security is issued or guaranteed by the government of
the country; or 2) the issuer is organized under the laws of the country,
derives at least 50% of its revenues or profits from goods sold,
investments made or services performed in the country, or has at least 50%
of its assets located in the country.
LOANS AND OTHER DIRECT DEBT INSTRUMENTS. Direct debt instruments are
interests in amounts owed by a corporate, governmental, or other borrower
to lenders or lending syndicates (loans and loan participations), to
suppliers of goods or services (trade claims or other receivables), or to
other parties. Direct debt instruments are subject to each fund's policies
regarding the quality of debt securities.
Purchasers of loans and other forms of direct indebtedness depend primarily
upon the creditworthiness of the borrower for payment of principal and
interest. Direct debt instruments may not be rated by any nationally
recognized rating service. If a fund does not receive scheduled interest or
principal payments on such indebtedness, the fund's share price and yield
could be adversely affected. Loans that are fully secured offer a fund more
protections than an unsecured loan in the event of non-payment of scheduled
interest or principal. However, there is no assurance that the liquidation
of collateral from a secured loan would satisfy the borrower's obligation,
or that the collateral could be liquidated. Indebtedness of borrowers whose
creditworthiness is poor involves substantially greater risks and may be
highly speculative. Borrowers that are in bankruptcy or restructuring may
never pay off their indebtedness, or may pay only a small fraction of the
amount owed. Direct indebtedness of developing countries also involves a
risk that the governmental entities responsible for the repayment of the
debt may be unable, or unwilling, to pay interest and repay principal when
due.
Investments in loans through direct assignment of a financial institution's
interests with respect to a loan may involve additional risks to a fund.
For example, if a loan is foreclosed, the fund could become part owner of
any collateral, and would bear the costs and liabilities associated with
owning and disposing of the collateral. In addition, it is conceivable that
under emerging legal theories of lender liability, the fund could be held
liable as a co-lender. Direct debt instruments may also involve a risk of
insolvency of the lending bank or other intermediary. Direct debt
instruments that are not in the form of securities may offer less legal
protection to a fund in the event of fraud or misrepresentation. In the
absence of definitive regulatory guidance, each fund relies on FMR's
research in an attempt to avoid situations where fraud or misrepresentation
could adversely affect the fund.
A loan is often administered by a bank or other financial institution that
acts as agent for all holders. The agent administers the terms of the loan,
as specified in the loan agreement. Unless, under the terms of the loan or
other indebtedness, each fund has direct recourse against the borrower, it
may have to rely on the agent to apply appropriate credit remedies against
a borrower. If assets held by the agent for the benefit of a fund were
determined to be subject to the claims of the agent's general creditors,
the fund might incur certain costs and delays in realizing payment on the
loan or loan participation and could suffer a loss of principal or
interest.
Direct indebtedness purchased by each fund may include letters of credit,
revolving credit facilities, or other standby financing commitments
obligating the fund to pay additional cash on demand. These commitments may
have the effect of requiring the fund to increase its investment in a
borrower at a time when it would not otherwise have done so, even if the
borrower's condition makes it unlikely that the amount will ever be repaid.
Each fund will set aside appropriate liquid assets in a segregated
custodial account to cover its potential obligations under standby
financing commitments.
Each fund limits the amount of total assets that it will invest in any one
issuer or in issuers within the same industry (see limita tions (i) and
(6) for Short-Term World Bond, and (i) and (4) for Global Bond and New
Markets Income. For purposes of these limitations, each fund generally
will treat the borrower as the "issuer" of indebtedness held by the fund.
In the case of loan participations where a bank or other lending
institution serves as financial intermediary between each fund and the
borrower, if the participation does not shift to the fund the direct
debtor-creditor relationship with the borrower, SEC interpretations require
the fund, in appropriate circumstances, to treat both the lending bank or
other lending institution and the borrower as "issuers" for these purposes.
Treating a financial intermediary as an issuer of indebtedness may restrict
a fund's ability to invest in indebtedness related to a single financial
intermediary, or a group of intermediaries engaged in the same industry,
even if the underlying borrowers represent many different companies and
industries.
LOWER-QUALITY DEBT SECURITIES. While the market for high-yield corporate
debt securities has been in existence for many years and has weathered
previous economic downturns, the 1980s brought a dramatic increase in the
use of such securities to fund highly leveraged corporate acquisitions and
restructurings. Past experience may not provide an accurate indication of
the future performance of the high-yield bond market, especially during
periods of economic recession.
The market for lower-quality debt securities may be thinner and less active
than that for higher-quality debt securities, which can adversely affect
the prices at which the former are sold. If market quotations are not
available, lower-quality debt securities will be valued in accordance with
procedures established by the Board of Trustees, including the use of
outside pricing services. Judgment plays a greater role in valuing
high-yield corporate debt securities than is the case for securities for
which more external sources for quotations and last-sale information are
available. Adverse publicity and changing investor perceptions may affect
the ability of outside pricing services to value lower-quality debt
securities and a fund's ability to dispose of these securities.
Since the risk of default is higher for lower-quality debt securities,
FMR's research and credit analysis are an especially important part of
managing securities of this type held by a fund. In considering investments
for the fund, FMR will attempt to identify those issuers of high-yielding
securities whose financial condition is adequate to meet future
obligations, has improved, or is expected to improve in the future. FMR's
analysis focuses on relative values based on such factors as interest or
dividend coverage, asset coverage, earnings prospects, and the experience
and managerial strength of the issuer.
Each fund may choose, at its expense or in conjunction with others, to
pursue litigation or otherwise to exercise its rights as a security holder
to seek to protect the interests of security holders if it determines this
to be in the best interest of the fund's shareholders.
MORTGAGE-BACKED SECURITIES. The funds may purchase mortgage-backed
securities issued by government and non-government entities such as banks,
mortgage lenders, or other financial institutions. A mortgage-backed
security is an obligation of the issuer backed by a mortgage or pool of
mortgages or a direct interest in an underlying pool of mortgages. Some
mortgage-backed securities, such as collateralized mortgage obligations or
CMOs, make payments of both principal and interest at a variety of
intervals; others make semiannual interest payments at a predetermined rate
and repay principal at maturity (like a typical bond). Mortgage-backed
securities are based on different types of mortgages including those on
commercial real estate or residential properties. Other types of
mortgage-backed securities will likely be developed in the future, and the
funds may invest in them if FMR determines they are consistent with the
funds' investment objective and policies.
The value of mortgage-backed securities may change due to shifts in the
market's perception of issuers. In addition, regulatory or tax changes may
adversely affect the mortgage securities market as a whole. Non-government
mortgage-backed securities may offer higher yields than those issued by
government entities, but also may be subject to greater price changes than
government issues. Mortgage-backed securities are subject to prepayment
risk. Prepayment, which occurs when unscheduled or early payments are made
on the underlying mortgages, may shorten the effective maturities of these
securities and may lower their total returns.
REPURCHASE AGREEMENTS. In a repurchase agreement, a fund purchases a
security and simultaneously commits to sell that security back to the
original seller at an agreed-upon price. The resale price reflects the
purchase price plus an agreed-upon incremental amount which is unrelated to
the coupon rate or maturity of the purchased security. To protect the fund
from the risk that the original seller will not fulfill its obligation, the
securities are held in an account of the fund at a bank, marked-to-market
daily, and maintained at a value at least equal to the sale price plus the
accrued incremental amount. While it does not presently appear possible to
eliminate all risks from these transactions (particularly the possibility
that the value of the underlying security will be less than the resale
price, as well as delays and costs to a fund in connection with bankruptcy
proceedings), it is each fund's current policy to engage in repurchase
agreement transactions with parties whose creditworthiness has been
reviewed and found satisfactory by FMR.
RESTRICTED SECURITIES generally can be sold in privately negotiated
transactions, pursuant to an exemption from registration under the
Securities Act of 1933, or in a registered public offering. Where
registration is required, a fund may be obligated to pay all or part of the
registration expense and a considerable period may elapse between the time
it decides to seek registration and the time it may be permitted to sell a
security under an effective registration statement. If, during such a
period, adverse market conditions were to develop, a fund might obtain a
less favorable price than prevailed when it decided to seek registration of
the security.
REVERSE REPURCHASE AGREEMENTS. In a reverse repurchase agreement, a fund
sells a portfolio instrument to another party, such as a bank or
broker-dealer, in return for cash and agrees to repurchase the instrument
at a particular price and time. While a reverse repurchase agreement is
outstanding, the fund will maintain appropriate liquid assets in a
segregated custodial account to cover its obligation under the agreement. A
fund will enter into reverse repurchase agreements only with parties whose
creditworthiness has been found satisfactory by FMR. Such transactions may
increase fluctuations in the market value of the fund's assets and may be
viewed as a form of leverage.
SECURITIES LENDING. A fund may lend securities to parties such as
broker-dealers or institutional investors, including Fidelity Brokerage
Services, Inc. (FBSI). FBSI is a member of the New York Stock Exchange and
a subsidiary of FMR Corp.
Securities lending allows a fund to retain ownership of the securities
loaned and, at the same time, to earn additional income. Since there may be
delays in the recovery of loaned securities, or even a loss of rights in
collateral supplied should the borrower fail financially, loans will be
made only to parties deemed by FMR to be of good standing. Furthermore,
they will only be made if, in FMR's judgment, the consideration to be
earned from such loans would justify the risk.
FMR understands that it is the current view of the SEC Staff that a fund
may engage in loan transactions only under the following conditions: (1)
the fund must receive 100% collateral in the form of cash or cash
equivalents (e.g., U.S. Treasury bills or notes) from the borrower; (2) the
borrower must increase the collateral whenever the market value of the
securities loaned (determined on a daily basis) rises above the value of
the collateral; (3) after giving notice, the fund must be able to terminate
the loan at any time; (4) the fund must receive reasonable interest on the
loan or a flat fee from the borrower, as well as amounts equivalent to any
dividends, interest, or other distributions on the securities loaned and to
any increase in market value; (5) the fund may pay only reasonable
custodian fees in connection with the loan; and (6) the Board of Trustees
must be able to vote proxies on the securities loaned, either by
terminating the loan or by entering into an alternative arrangement with
the borrower.
Cash received through loan transactions may be invested in any security in
which a fund is authorized to invest. Investing this cash subjects that
investment, as well as the security loaned, to market forces (i.e., capital
appreciation or depreciation).
SOVEREIGN DEBT OBLIGATIONS. Each fund may purchase sovereign debt
instruments issued or guaranteed by foreign governments or their agencies,
including debt of Latin American nations or other developing countries.
Sovereign debt may be in the form of conventional securities or other types
of debt instruments such as loans or loan participations. sovereign debt of
developing countries may involve a high degree of risk, and my be in
default or present the risk of default. Governmental entities responsible
for repayment of the debt may be unable or unwilling to repay principal and
interest when due, and may require renegotiation or rescheduling of debt
payments. In addition, prospects for repayment of principal and interest
may depend on political as well as economic factors.
STRIPPED MORTGAGE-BACKED SECURITIES are created when a U.S. government
agency or a financial institution separates the interest and principal
components of a mortgage-backed security and sells them as individual
securities. The holder of the "principal-only" security (PO) receives the
principal payments made by the underlying mortgage-backed security, while
the holder of the "interest-only" security (IO) receives interest payments
from the same underlying security.
The prices of stripped mortgage-backed securities may be particularly
affected by changes in interest rates. As interest rates fall, prepayment
rates tend to increase, which tends to reduce prices of IOs and increase
prices of POs. Rising interest rates can have the opposite effect.
SWAP AGREEMENTS. Swap agreements can be individually negotiated and
structured to include exposure to a variety of different types of
investments or market factors. Depending on their structure, swap
agreements may increase or decrease a fund's exposure to long- or
short-term interest rates (in the United States or abroad), foreign
currency values, mortgage securities, corporate borrowing rates, or other
factors such as security prices or inflation rates. Swap agreements can
take many different forms and are known by a variety of names. A fund is
not limited to any particular form of swap agreement if FMR determines it
is consistent with the fund's investment objective and policies.
In a typical cap or floor agreement, one party agrees to make payments only
under specified circumstances, usually in return for payment of a fee by
the other party. For example, the buyer of an interest rate cap obtains the
right to receive payments to the extent that a specified interest rate
exceeds an agreed-upon level, while the seller of an interest rate floor is
obligated to make payments to the extent that a specified interest rate
falls below an agreed-upon level. An interest rate collar combines elements
of buying a cap and selling a floor.
Swap agreements will tend to shift a fund's investment exposure from one
type of investment to another. For example, if the fund agreed to exchange
payments in dollars for payments in foreign currency, the swap agreement
would tend to decrease the fund's exposure to U.S. interest rates and
increase its exposure to foreign currency and interest rates. For example,
if the fund agreed to pay fixed rates in exchange for floating rates while
holding fixed-rate bonds, the swap would tend to decrease the fund's
exposure to long-term interest rates. Caps and floors have an effect
similar to buying or writing options. Depending on how they are used, swap
agreements may increase or decrease the overall volatility of a fund's
investments and its share price and yield.
The most significant factor in the performance of swap agreements is the
change in the specific interest rate, currency, or other factors that
determine the amounts of payments due to and from a fund. If a swap
agreement calls for payments by the fund, the fund must be prepared to make
such payments when due. In addition, if the counterparty's creditworthiness
declined, the value of a swap agreement would be likely to decline,
potentially resulting in losses. Each fund expects to be able to eliminate
its exposure under swap agreements either by assignment or other
disposition, or by entering into an offsetting swap agreement with the same
party or a similarly creditworthy party.
Each fund will maintain appropriate liquid assets in a segregated custodial
account to cover its current obligations under swap agreements. If a fund
enters into a swap agreement on a net basis, it will segregate assets with
a daily value at least equal to the excess, if any, of the fund's accrued
obligations under the swap agreement over the accrued amount the fund is
entitled to receive under the agreement. If a fund enters into a swap
agreement on other than a net basis, it will segregate assets with a value
equal to the full amount of the fund's accrued obligations under the
agreement.
VARIABLE OR FLOATING RATE OBLIGATIONS bear variable or floating interest
rates and carry rights that permit holders to demand payment of the unpaid
principal balance plus accrued interest from the issuers or certain
financial intermediaries. Floating rate instruments have interest rates
that change whenever there is a change in a designated base rate while
variable rate instruments provide for a specified periodic adjustment in
the interest rate. These formulas are designed to result in a market value
for the instrument that approximates its par value.
WARRANTS. Warrants are securities that give a fund the right to purchase
equity securities from the issuer at a specific price (the strike price)
for a limited period of time. The strike price of warrants typically is
much lower than the current market price of the underlying securities, yet
they are subject to similar price fluctuations. As a result, warrants may
be more volatile investments than the underlying securities and may offer
greater potential for capital appreciation as well as capital loss.
Warrants do not entitle a holder to dividends or voting rights with
respect to the underlying securities and do not represent any rights in the
assets of the issuing company. Also, the value of the warrant does not
necessarily change with the value of the underlying securities and a
warrant ceases to have value if it is not exercised prior to expiration
date. These factors can make warrants more speculative than other types of
investments.
ZERO COUPON BONDS. Zero coupon bonds do not make interest payments;
instead, they are sold at a deep discount from their face value and are
redeemed at face value when they mature. Because zero coupon bonds do not
pay current income, their prices can be very volatile when interest rates
change. In calculating its dividends, a fund takes into account as income a
portion of the difference between a zero coupon bond's purchase price and
its face value.
A broker-dealer creates a DERIVATIVE ZERO by separating the interest and
principal components of a U.S. Treasury security and selling them as two
individual securities. CATS (Certificates of Accrual on Treasury
Securities), TIGRs (Treasury Investment Growth Receipts), and TRs (Treasury
Receipts) are examples of derivative zeros.
The Federal Reserve Bank creates STRIPS (Separate Trading of Registered
Interest and Principal of Securities) by separating the interest and
principal components of an outstanding U.S. Treasury bond and selling them
as individual securities. Bonds issued by the Resolution Funding
Corporation (REFCORP) and the Financing Corporation (FICO) can also be
separated in this fashion. ORIGINAL ISSUE ZEROS are zero coupon securities
originally issued by the U.S. government, a government agency, or a
corporation in zero coupon form.
SPECIAL CONSIDERATIONS AFFECTING EUROPE
New developments surrounding the creation of a unified common market in
Europe have helped to reduce physical and economic barriers promoting the
free flow of goods and services throughout Western Europe. These new
developments could make this new unified market one of the largest in the
world. However, in 1993 Europe's economies began to slow and subsequently
slid into recession as tight monetary conditions and a lack of progress
toward inflation convergence and budgetary consolidation in many countries
weakened consumer and business confidence. More generally, the turbulence
in foreign exchange markets since the middle of 1992 and escalating
tensions over trade contributed to increased uncertainty in many countries.
The U.S. dollar continued on its downward track with respect to both the
German mark and many other of Europe's currencies such as the Italian lira,
the Spanish peseta and the Swedish krona which have been affected by
political uncertainties and fiscal problems.
Subsequently, Europe's economies began to improve in 1995 as continued
growth in the United States and the Southeast Asian countries provided the
foundation for an export-led recovery. This recovery was aided by a sharp
rebound of the U.S. dollar after reaching postwar lows in the spring of
1995.
The Eastern European countries, after several years of declining output,
have generally shown dramatic growth in 1994 and 1995. Despite formidable
obstacles and major differences among countries and regions, many nations
are making substantial progress in their efforts to become market-oriented
economies. However, these economies are becoming increasingly disparate and
the experience of countries in the region varies markedly. Those nations
making the most successful transitions include Poland, the Czech Republic,
and Hungary, while some of the former Soviet republics continue to suffer
from the consequences of the break-up of the Union and have not made much
progress in implementing effective market oriented reforms. Key aspects of
the reform and stabilization efforts have not yet been fully implemented,
and there remain risks of policy slippage. In the Russian Federation and
most other countries of the former Soviet Union, economic conditions are of
particular concern because of economic instability due to political unrest
and armed conflicts in many regions.
Notwithstanding the continued economic difficulties in many countries,
recent positive developments offer hope for a cooperative growth strategy
in the near term, which could also permit a strengthening of global
economic performance over the medium term. Many developing countries are
reaping the fruits of sustained reform and stabilization efforts. Efforts
to enhance assistance to countries affected by the transition to
market-based trading systems occurring in central Europe and the former
Soviet Union, and to low-income countries to support strengthened
stabilization and restructuring efforts, are moving forward. In Europe,
exchange market tensions have eased, interest rates have been falling and
may continue to do so as evidence accumulates of the waning of inflationary
pressures.
The European Community (EC) consists of Belgium, Denmark, France, Germany,
Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, and the
United Kingdom (the member states). In 1986, the member states of the EC
signed the "Single European Act", an agreement committing these countries
to the establishment of a market among themselves, unimpeded by internal
barriers or hindrances to the free movement of goods, persons, services, or
capital. To meet this goal, a series of directives have been issued to the
member states. Compliance with these directives is designed to eliminate
three principal categories of barriers: (1) physical frontiers, such as
customs posts and border controls; (2) technical barriers (which include
restrictions operating within national territories) such as regulations and
norms for goods and services (product standards); discrimination against
foreign bids (bids by other EC members) on public purchases; or
restrictions on foreign requests to establish subsidiaries; and (3) fiscal
frontiers, notably the need to levy value-added taxes, tariffs, or excises
on goods or services imported from other EC states.
The ultimate goal of this project is to achieve a large unified domestic
European market in which available resources would be more efficiently
allocated through the elimination of the above-mentioned barriers and the
added costs associated with those barriers. Elimination of these barriers
would simplify product distribution networks, allow economies of scale to
be more readily achieved, and free the flow of capital and other resources.
The Maastricht Treaty on economic and monetary union (EMU) attempts to
provide its members with a stable monetary framework consistent with the
EC's broad economic goals. But until the EMU takes effect, which is
intended to occur between 1997 and 1999, the community will face the need
to reinforce monetary cooperation in order to reduce the risk of a
recurrence of tensions between domestic and external policy objectives.
The total European market, as represented by both EC and non-EC countries,
consists of over 370 million consumers, making it larger currently than
either the United States or Japanese markets. European businesses compete
nationally and internationally in a wide range of industries including:
telecommunications and information services, roads and transportation,
building materials, food and beverages, broadcast and media, financial
services, electronics, and textiles. Actual and anticipated actions on the
part of member states to conform to the unified Europe directives have
prompted interest and activity not only by European firms, but also by
foreign entities anxious to establish a presence in Europe that will result
from these changes. Indications of the effect of this response to a unified
Europe can be seen in the areas of mergers and acquisitions, corporate
expansion and development, GNP growth, and national stock market activity.
The early experience of the former centrally planned economies has already
demonstrated the crucially important link between structural reforms,
macroeconomic stabilization, and successful economic transformation. Among
the central European countries, the Czech Republic, Hungary, and Poland
have made the greatest progress in structural reform; inflationary
pressures there have abated following price liberalization, and output has
begun to recover. These achievements will be difficult to sustain, however,
in the absence of strong efforts to contain the large fiscal deficits that
have accompanied the considerable losses of output and tax revenue since
the start of the reform process.
In the Baltic countries there are encouraging signs that reforms are taking
hold and are being supported by strong stabilization efforts. In most other
countries of the former Soviet Union, in contrast, inadequate stabilization
efforts now threaten to lead to hyper-inflation, which could derail the
reform process. Inflation, which had abated following the immediate impact
of price liberalization in early 1992, surged to extremely high levels in
late 1992 and early 1993. The main reason for this development has been
excessive credit expansion to the government and to state enterprises. The
transformation process is being seriously hampered by the widespread
subsidization of inefficient enterprises and the resulting misallocation of
resources. The lack of effective economic and monetary cooperation among
the countries of the former Soviet Union exacerbates other problems by
severely constraining trade flows and impeding inflation control. Partly as
a result of these difficulties, some countries have decided that the
introduction of separate currencies offers the best scope for avoiding
hyper-inflation and for improving economic conditions. This development can
facilitate the implementation of stronger stabilization programs. Economic
conditions in the former Soviet Union have continued to deteriorate. Real
GDP in Russia fell 11.9 percent in 1993, after an 18 percent decline in
1992. In many other countries of the region, output losses have been even
larger. These declines reflect the adjustment difficulties during the early
stages of the transition, high rates of inflation, the compression of
imports, disruption in trade among the countries of the former Soviet
Union, and uncertainties about the reform process itself. Large-scale
subsidies are delaying industrial restructuring and are exacerbating the
fiscal situation. A reversal of these adverse factors is not anticipated in
the near term and output is expected to decline further in most of these
countries.
Economic conditions appear to have improved for some of the transition
economies of central Europe during the past year. Following three
successive years of output declines, there has been a turnaround in the
former Czech and Slovak Federal Republic, Hungary and Poland: growth in
private sector activity and strong exports, especially to Western Europe,
now appear to have contained the fall in output. Most central European
countries in transition have achieved positive real growth in 1994 and
early 1995 as market reform has deepened. The strength of the projected
output gains will depend crucially on the ability of the reforming
countries to contain fiscal deficits and inflation and on their continued
access to, and success in, export markets. A number of their governments,
including those of Hungary, and Poland, are currently implementing or
considering reforms directed at political and economic liberalization,
including efforts to foster multi-party political systems, decentralize
economic planning, and move toward free market economies. At present, no
Eastern European country has developed stock markets but Poland, Hungary
and the Czech Republic have small securities markets in operation. Ethnic
and civil conflict continued to rate throughout the former Yugoslavia. The
outcome is uncertain.
Both the EC and Japan, among others, have made overtures to establish
trading arrangements and assist in the economic development of the Eastern
European nations. In the rest of Europe, monetary policy and financial
market developments have been dominated by the currency turmoil that began
in September 1992. At the same time, conditions are improving for
significant reductions of official interest rates in Europe, which should
help to contain recessionary forces and provide support to the overall
economic recovery in the region by early 1996. With the passage of the
General Agreement on Trade and Tariffs (GATT) earlier this year, Europe has
taken a step forward to resist protectionist pressures. Interest rates
continue to decline, but some countries' tight monetary conditions remain
an obstacle to stronger growth and a threat to exchange market stability.
However, in the long-term, economic unification of Europe could prove to be
an engine for domestic and international growth.
The conditions that have given rise to these developments are changeable,
and there is no assurance that reforms will continue or that their goals
will be achieved.
REAL GDP ANNUAL RATE OF GROWTH
199 4
Denmark 4.4%

France 2.9

Germany 2.9

Italy 2.2

Netherlands 2.5

Spain 2.0

Switzerland 1.2

United Kingdom 3.8

Source: World Economic Outlook , October 1995
(Figures are quoted based on each country's domestic currency.)
NATIONAL INDICES (WITHOUT DIVIDENDS) DECEMBER 1995
GROWTH IN U.S. DOLLARS
EUROPE
6 months 12 months 5 years

Greece -2.98% 10.20% -5.84%

Portugal -5.03 -2.50 0.46

Turkey -34.78 -5.90 -11.98

Source: Randal Helms
SPECIAL CONSIDERATIONS AFFECTING JAPAN, THE PACIFIC BASIN, AND SOUTHEAST
ASIA
Many Asian countries may be subject to a greater degree of social,
political and economic instability than is the case in the United States
and Western European countries. Such instability may result from (i)
authoritarian governments or military involvement in political and economic
decision-making; (ii) popular unrest associated with demands for improved
political, economic, and social conditions; (iii) internal insurgencies;
(iv) hostile relations with neighboring countries; and (v) ethnic,
religious, and racial disaffection.
The economies of most of the Asian countries continue to depend heavily
upon international trade and are accordingly affected by protective trade
barriers and the economic conditions of their trading partners,
principally, the United States, Japan, China and the European Community.
The enactment by the United States or other principal trading partners of
projectionist trade legislation, reduction of foreign investment in the
local economies, and general declines in the international securities
markets could have significant adverse effects upon the securities markets
of the Asian countries.
The success of market reforms, a surge in infrastructure spending have
fueled rapid growth in many developing countries in Asia. Rapidly rising
household incomes have fostered large middle classes and new waves of
consumer spending. Increases in infrastructure spending and consumer
spending have made domestic demand the growth engine for these countries.
Thus their growth now depends less upon exports to OECD countries. While
exports may no longer be the sole source of growth for developing
economies, improved competitiveness in exports markets has contributed to
growth in many of these nations. The increased productivity of many Asian
countries has enabled them to achieve, or continue, their status as top
exporters while improving their national living standards.
Thailand has one of the fastest-growing stock markets in the world. The
manufacturing sector is becoming increasingly sophisticated and is
benefiting from export-oriented investing. The manufacturing and service
sectors continue to account for the bulk of Thailand's economic growth. The
agricultural sector continues to become less important. The government has
followed fairly sound fiscal and monetary policies, aided by increased tax
receipts from a fast moving economy. The government also continues to move
ahead with new projects - especially telecommunications, roads and port
facilities - needed to refurbish the country's overtaxed infrastructure.
The country enjoys an able bureaucracy, which has maintained economic
policy during the country's many coups. In recent years, the risk of a coup
has diminished, but corruption remains widespread.
In terms of GDP, industrial standards and level of education, South Korea
is second only to Japan in Asia. It enjoys the benefits of a diversified
economy with well-developed sectors in electronics, automobiles, textiles
and shoe manufacture, steel and shipbuilding among others. The driving
force behind the economy's dynamic growth has been the planned development
of an export-oriented economy in a vigorously entrepreneurial society. Real
GDP grew about 8.3% in 1994. Both Koreas joined the United Nations
separately in late 1991, creating another forum for negotiation and joint
cooperation. Reunification of North Korea and South Korea could have a
detrimental effect on the economy of South Korea.
Indonesia is a mixed economy with many socialist institutions and central
planning but with a recent emphasis on deregulation and private enterprise.
Like Thailand, Indonesia has extensive natural wealth yet with a large and
rapidly increasing population. Dependent on oil exports during the 1980s,
its manufactured products now predominate, contributing 21% of GDP.
Indonesia's development is progressing smoothly, and it has become the
world's 12 largest economy.
Malaysia has one of the fastest-growing economies in the Asian-Pacific
region. Malaysia has become the world's third-largest producer of
semiconductor devices (after the U.S. and Japan) and the world's largest
exporter of semiconductor devices. More remarkable is the country's ability
to achieve rapid economic growth with relative price stability as the
government followed prudent fiscal/monetary policies. Malaysia's high
export dependence level leaves it vulnerable to a recession in the
Organization for Economic Cooperation and Development countries or a fall
in world commodity prices.
Singapore has an open entrepreneurial economy with strong service and
manufacturing sectors and excellent international trading links derived
from its history. During the 1970s and the early 1980s the economy expanded
rapidly, achieving an average annual growth rate of 9%. Per capita GDP is
among the highest in Asia. Singapore holds a position as a major oil
refining and services center.
Japan currently has the second-largest GDP in the world. The Japanese
economy has grown substantially over the last three decades. Its growth
rate averaged over 5% in the 1970s and 1980s. However in 1994, the growth
rate in Japan slowed to 0.6% and their budget showed a deficit of 7.8% of
GDP. Despite small rallies and market gains Japan has been plagued with
economic sluggishness. Economic conditions have weakened considerably in
Japan since October 1992. The boom in Japan's equity and property markets
during the expansion of the late 1980's supported high rates of investment
and consumer spending on durable goods, but both of these components of
demand have now retreated sharply following the decline in asset prices. It
is suffering through its worst recession in two decades. Profits have
fallen sharply, unemployment has reached a historical high of 3.2% and
consumer confidence is low. The banking sector continues to suffer from
non-performing loans. Nine discount rate cuts since its 6% peak in 1991, a
succession of fiscal stimulus packages, support plans for the debt-burdened
financial system and spending for reconstruction following the Kobe
earthquake should help to contain the recessionary forces, but substantial
uncertainties remain. The general government position has deteriorated as a
result of weakening economic growth, as well as stimulative measures taken
recently to support economic activity and to restore financial stability.
In addition to a cyclical downturn, Japan is suffering through structural
adjustments. Like the Europeans, the Japanese have seen a deterioration of
their competitiveness due to high wages, a strong currency and structural
rigidities. Japan has also become a mature industrial economy and, as a
result, will see its long-term growth rate slow down over the next ten
years. Finally, Japan is reforming its political process and deregulating
its economy. This has brought about turmoil, uncertainty and a crisis of
confidence.
Japan is heavily dependent upon international trade and, accordingly, has
been and may continue to be adversely affected by trade barriers and other
protectionist or retaliatory measures of, as well as economic conditions in
the U.S. and other countries with which they trade. Industry, the most
important sector of the economy is heavily dependent on imported raw
materials and fuels. Japan's major industries are in the engineering,
electrical, textile, chemical, automobile, fishing, and telecommunication
fields. Japan imports iron ore, copper, and many forest products. Only 19%
of its land is suitable for cultivation. Japan's agricultural economy is
subsidized and protected. It is about 50% self-sufficient in food
production. Even though Japan produces a minute rice surplus, it is
dependent upon large imports of wheat, sorghum and soybeans from other
countries. Japan's high volume of exports such as automobiles, machine
tools and semiconductors have caused trade tensions with other countries,
particularly the United States. Some trading agreements between the
countries have reduced the friction caused by the current trade imbalance.
A record high value of the yen in first half of 1995 threatened to derail
Japan's recovery from a long economic downturn, mainly because it made
Japanese products more expensive overseas and eroded the value of foreign
earnings when repatriated to Japan. However, the recent ease of the yen has
created expectations that Japanese earnings will improve for the fiscal
year ending March 1996.
Australia has a prosperous Western-style capitalist economy, with a per
capita GDP comparable to levels in industrialized Western European
countries. Economic growth accelerated markedly in 1994 as robust domestic
spending boosted activity. It is rich in natural resources and is the
world's largest exporter of beef and wool, second-largest for mutton, and
it is among the top wheat exporters. Australia is also a major exporter of
minerals, metals and fossil fuels. Due to the nature of its exports, a
downturn in world commodity prices can have a big impact on its
economy.
EMERGING MARKETS: ASIA
MARKET CAPITALIZATION (ESTIMATES) IN U.S. DOLLARS
DECEMBER 1995
Billions:

India $132,466

Indonesia 69,970

Korea 184,085

Malaysia n/a

Pakistan 9,830

Philippines 53,633

Sri Lanka 1,937

Taiwan 179,421

Thailand 135,755

Source: Morgan Stanley Capital International (MSCI)
NATIONAL INDICES (WITHOUT DIVIDENDS) DECEMBER 1995
GROWTH IN U.S. DOLLARS
ASIA
6 months 12 months 5 years

India -16.29% -31.90% n/a

Indonesia -0.45 7.49 -3.61%

Korea -1.42 -4.63 4.52

Malaysia -5.66 3.96 15.29

Pakistan -19.38 -38.27 n/a

Philippines -13.37 -15.43 36.29

Sri Lanka -14.36 -32.66 n/a

Taiwan -9.05 -30.24 -5.11

Thailand -8.68 -5.66 20.62

Source: MSCI
ASIAN STOCK MARKET RETURNS (WITHOUT DIVIDENDS)
DECEMBER 199 5
Stock market returns

(Local currency %)

12 months to December 31, 1995

China n/a

Hong Kong 18.15%

India -23.70

Indonesia 11.81

Japan 3.41

Korea -6.17

Malaysia 3.39

Philippines -9.09

Singapore 1.90

Taiwan -27.59

Thailand -5.34

Source: MSCI
REAL GDP ANNUAL RATE OF GROWTH 199 4
China 11.5%

Hong Kong 5.7

India 4.9

Indonesia 7.3

Japan 0.5

Korea 8.4

Malaysia 8.7

Philippines 4.3

Singapore n/a

Taiwan 6.5

Thailand 8.5

Source: World Economic Outlook , October 1995
SPECIAL CONSIDERATIONS AFFECTING CANADA
Canada occupies the northern part of North America and is the
second-largest country in the world (3.97 million square miles in area)
extending from the Atlantic Ocean to the Pacific. The companies in which
the fund may invest may include those involved in the energy industry,
industrial materials (chemicals, base metals, timber, and paper), and
agricultural materials (grain cereals). The securities of companies in the
energy industry are subject to changes in value and dividend yield which
depend, to a large extent, on the price and supply of energy fuels. Rapid
price and supply fluctuations may be caused by events relating to
international politics, energy conservation, and the success of exploration
projects. Canada is one of the world's leading industrial countries, as
well as a major exporter of agricultural products. Canada is rich in
natural resources such as zinc, uranium, nickel, gold, silver, aluminum,
iron, and copper. Forest covers over 44% of its land area, making Canada a
leading world producer of newsprint. The economy of Canada is strongly
influenced by the activities of companies and industries involved in the
production and processing of natural resources. Canada is a major producer
of hydroelectricity, oil, and gas. The business activities of companies in
the energy field may include the production, generation, transmission,
marketing, control, or measurement of energy or energy fuels. Economic
prospects are changing due to recent government attempts to reduce
restrictions against foreign investment.
Canadian securities are not considered by FMR to have the same level of
risk as other nation's securities. Canadian and U.S. companies are
generally subject to similar auditing and accounting procedures, and
similar government supervision and regulation. Canadian markets are more
liquid than many other foreign markets and share similar characteristics
with U.S. markets. The political system is more stable than in some other
foreign countries, and the Canadian dollar is generally less volatile
relative to the U.S. dollar.
Many factors affect and could have an adverse impact on the financial
condition of Canada, including social, environmental, and economic
conditions; factors which are not within the control of Canada. In Canada,
where recovery is not yet as firmly established as in the United States,
interest rates have been coming down after a sharp rise associated with
exchange market developments in the fall of 1992. In light of the cyclical
situation, there should be room for a further easing of interest rates
without jeopardizing the progress made toward price stability. Continued
perseverance in reducing the structural budget deficit also is required.
FMR is unable to predict what effect, if any, such factors would have on
instruments held in the fund's portfolio.
The U.S. - Canada Free Trade Agreement which became effective in January
1989, will be phased in over a period of 10 years. This agreement will
remove tariffs on U.S. technology and Canadian agricultural products in
addition to removing trade barriers affecting other important sectors of
each country's economy. Canada, the U.S. and Mexico have implemented the
North American Free Trade Agreement which was entered into in 1994. This
cooperation is expected to lead to increased trade and to reduce barriers.
The majority of new equity issues or initial public offerings in Canada are
through underwritten offerings. The funds may elect to participate in these
issues.
SPECIAL CONSIDERATIONS AFFECTING LATIN AMERICA
Latin America is a region rich in natural resources such as oil, copper,
tin, silver, iron ore, forestry, fishing, livestock, and agriculture. The
region has a large population (over 300 million) representing a large
domestic market. The region has been transitional over the last five years
from the stagnant 1980s which were characterized by poor economic policies,
higher international interest rates, and limited access to new foreign
capital.
High inflation and low economic growth have given way to stable manageable
inflation rates and higher economic growth. Changes in political
leadership, the implementation of market-oriented economic policies, such
as privatization, trade reform and monetary reform have been among the
recent steps taken to modernize the Latin American economies and to
regenerate growth in the region. Various trade agreements have also been
formed within the region such as the Andean Pact, Mercosur and the North
America Free Trade Agreement (NAFTA). The largest of these is NAFTA, which
was implemented on January 1, 1994.
Latin American equity markets can be extremely volatile and in the past
have shown little correlation with the U.S. market. Currencies are
typically weak, but most are now relatively free floating, and it is not
unusual for the currencies to undergo wide fluctuations in value over short
periods of time due to changes in the market.
Mexico's economy has been transformed significantly over the last 6-7
years. In the past few years the government has sold the telephone company,
the major steel companies, the banks and many others. The major state
ownership remaining is in the oil sector and the electricity sector. The
U.S. is Mexico's major trading partner, accounting for two-thirds of its
exports and imports. The government, in consultation with international
economic agencies, is implementing programs to stabilize the economy and
foster growth. For example, Mexico, the U.S. and Canada implemented the
North American Free Trade Agreement. This cooperation is expected to lead
to increased trade and reduced barriers.
In the early 1980s Mexico experienced a foreign debt crisis. By 1987,
foreign debt had reached prohibitive levels, accounting for 90 to 95
percent of GDP, thus draining Mexico of all its resources. By the end of
1994, a large current account deficit, fueled in part by expansionary
policy, and the burden of its large national debt forced the Mexican
government to devalue the peso, triggering a severe crisis of confidence.
Both the crisis and the measures taken to stabilize the economy since, have
led to severely reduced domestic demand, which has been only partially
offset by positive trade-related activity.
Brazil entered the 1990s with declining real growth, runaway inflation, an
unserviceable foreign debt of $122 billion, and a lack of policy direction.
Over the past two years, Brazil was able to stabilize its domestic economy
through a relentless process of balancing the government budget, the
privatization of state enterprises, deregulation and reduction of red tape
and introducing greater competition in the domestic business environment.
Inflation has been reduced to about 3% a month from 50% a month since mid
1994. A major long-run strength is Brazil's natural resources. Iron ore,
bauxite, tin, gold, and forestry products make up some of Brazil's basic
natural resource base, which includes some of the largest mineral reserves
in the world. In terms of population, Brazil is the sixth-largest in the
world with about 155 million people and represents a huge domestic market.
Chile, like Brazil, is endowed with considerable mineral resources, in
particular copper. Economic reform has been ongoing in Chile for at least
15 years, but political democracy has only recently returned to Chile.
Privatization of the public sector beginning in the early 1980s has
bolstered the equity market. A well organized pension system has created a
long-term domestic investor base.
Argentina is strong in wheat production and other foodstuffs and livestock
ranching. A well-educated and skilled population boasts one of the highest
literacy rates in the region. The country has been ravaged by decades of
extremely high inflation and political instability. Thanks to structural
reforms, the revitalized Argentine economy has been among the top three
fastest growing economies in the world over the last three years. The newly
created Argentine economic institutions have integrated the country with
the rest of the world, leaving the state to concentrate on its essential
functions. Privatization is ongoing and should reduce the amount of
external debt outstanding. The markets for labor, capital and goods and
services have been de-regulated. Nearly all non-tariff barriers and export
taxes have been eliminated, the tariff structure simplified and tariffs
sharply reduced.
Venezuela has substantial oil reserves. External debt is being
renegotiated, and the government is implementing economic reform in order
to reduce the size of the public sector. Internal gasoline prices, which
are one-third those of international prices, are being increased in order
to reduce subsidies. Plans for privatization and exchange and interest rate
liberalization are examples of recently introduced reforms.
EMERGING MARKETS: LATIN AMERICA
MARKET CAPITALIZATION IN U.S. DOLLARS
(ESTIMATED) DECEMBER 1994
Billions:

Argentina $37,909

Brazil 148,910

Chile 72,969

Colombia 10,134

Mexico 97,384

Peru 10,847

Venezuela 4,001

Source: MSCI
NATIONAL INDICES (WITHOUT DIVIDENDS) DECEMBER 199 5
GROWTH IN U.S. DOLLARS
LATIN AMERICA
6 months 12 months 5 years

Argentina 16.51% 8.66% 31.23%

Brazil 1.10 -21.29 45.33

Chile -16.51 -6.17 33.35

Colombia -20.86 -27.76 n/a

Mexico 3.40 -23.18 11.94

Peru 9.60 22.11 n/a

Venezuela -17.07 -28.52 n/a

Source: MSCI
SPECIAL CONSIDERATIONS AFFECTING AFRICA
Africa is a continent of roughly 50 countries with a total population of
approximately 840 million people. Literacy rates (the percentage of people
who are over 15 years of age and who can read and write) are relatively
low, ranging from 20% to 60%. The primary industries include crude oil,
natural gas, manganese ore, phosphate, bauxite, copper, iron, diamond,
cotton, coffee, cocoa, timber, tobacco, sugar, tourism, and cattle.
Many of the countries are fraught with political instability. However,
there has been a trend over the past five years toward democratization.
Still, there remain many countries that do not have a stable political
process. Other countries have been enmeshed in civil wars and border
clashes.
Economically, the Northern Rim countries (including Morocco, Egypt, and
Algeria) and Nigeria, Zimbabwe, and South Africa are the wealthier
countries on the continent due to their strong ties with the European
nations. The market capitalization of these countries has been growing
recently as more international companies invest in Africa and as local
companies start to list on the exchanges. However, religious strife has
been a significant source of instability.
On the other end of the economic spectrum are countries, such as Burkina
Faso, Madagascar, and Malawwi, that are considered to be among the poorest
or least developed in the world. These countries are generally landlocked
or have poor natural resources. The economies of many African countries are
heavily dependent on international oil prices. Of all the African
industries, oil has been the most lucrative, accounting for 40% to 60% of
many countries' GDP. However, the general decline in oil prices has had an
adverse impact on many economies.
PORTFOLIO TRANSACTIONS
All orders for the purchase or sale of portfolio securities are placed on
behalf of each fund by FMR pursuant to authority contained in the
management contract. If FMR grants investment management authority to the
sub-advisers (see the section entitled "Management Contracts"), the
sub-advisers are authorized to place orders for the purchase and sale of
portfolio securities, and will do so in accordance with the policies
described below. FMR is also responsible for the placement of transaction
orders for other investment companies and accounts for which it or its
affiliates act as investment adviser. In selecting broker-dealers, subject
to applicable limitations of the federal securities laws, FMR considers
various relevant factors, including, but not limited to: the size and type
of the transaction; the nature and character of the markets for the
security to be purchased or sold; the execution efficiency, settlement
capability, and financial condition of the broker-dealer firm; the
broker-dealer's execution services rendered on a continuing basis; and the
reasonableness of any commissions. Commissions for investments traded on
foreign exchanges will be higher than for investments traded on U.S.
exchanges and may not be subject to negotiation.
The funds may execute portfolio transactions with broker-dealers who
provide research and execution services to the funds or other accounts over
which FMR or its affiliates exercise investment discretion. Such services
may include advice concerning the value of securities; the advisability of
investing in, purchasing, or selling securities; and the availability of
securities or the purchasers or sellers of securities. In addition, such
broker-dealers may furnish analyses and reports concerning issuers,
industries, securities, economic factors and trends, portfolio strategy,
and performance of accounts; effect securities transactions, and perform
functions incidental thereto (such as clearance and settlement). The
selection of such broker-dealers generally is made by FMR (to the extent
possible consistent with execution considerations) based upon the quality
of research and execution services provided.
The receipt of research from broker-dealers that execute transactions on
behalf of the funds may be useful to FMR in rendering investment management
services to the funds or its other clients, and conversely, such research
provided by broker-dealers who have executed transaction orders on behalf
of other FMR clients may be useful to FMR in carrying out its obligations
to the funds. The receipt of such research has not reduced FMR's normal
independent research activities; however, it enables FMR to avoid the
additional expenses that could be incurred if FMR tried to develop
comparable information through its own efforts.
Subject to applicable limitations of the federal securities laws,
broker-dealers may receive commissions for agency transactions that are in
excess of the amount of commissions charged by other broker-dealers in
recognition of their research and execution services. In order to cause
each fund to pay such higher commissions, FMR must determine in good faith
that such commissions are reasonable in relation to the value of the
brokerage and research services provided by such executing broker-dealers,
viewed in terms of a particular transaction or FMR's overall
responsibilities to the funds and its other clients. In reaching this
determination, FMR will not attempt to place a specific dollar value on the
brokerage and research services provided, or to determine what portion of
the compensation should be related to those services.
FMR is authorized to use research services provided by and to place
portfolio transactions with brokerage firms that have provided assistance
in the distribution of shares of the funds or shares of other Fidelity
funds to the extent permitted by law. FMR may use research services
provided by and place agency transactions with Fidelity Brokerage Services,
Inc. (FBSI) and Fidelity Brokerage Services (FBS), subsidiaries of FMR
Corp., if the commissions are fair, reasonable, and comparable to
commissions charged by non- affiliated, qualified brokerage firms for
similar services. From September 1992 through December 1994, FBS operated
under the name Fidelity Brokerage Services Limited, Inc. (FBSL). As of
January 1995, FBSL was converted to an unlimited liability company and
assumed the name FBS. Prior to September 4, 1992, FBSL operated under the
name Fidelity Portfolio Services, Ltd. (FPSL) as a wholly owned subsidiary
of Fidelity International Limited (FIL). Edward C. Johnson 3d is Chairman
of FIL. Mr. Johnson 3d, Johnson family members, and various trusts for the
benefit of the Johnson family own, directly or indirectly, more than 25% of
the voting common stock of FIL.
Section 11(a) of the Securities Exchange Act of 1934 prohibits members of
national securities exchanges from executing exchange transactions for
accounts which they or their affiliates manage, unless certain requirements
are satisfied. Pursuant to such requirements, the Board of Trustees has
authorized FBSI to execute portfolio transactions on national securities
exchanges in accordance with approved procedures and applicable SEC rules.
Each fund's Trustees periodically review FMR's performance of its
responsibilities in connection with the placement of portfolio transactions
on behalf of the funds and review the commissions paid by each fund over
representative periods of time to determine if they are reasonable in
relation to the benefits to the fund.
For the fiscal periods ended December 31, 1995 and 1994, the funds'
portfolio turnover rates were:
1995 1994

Short-Term World Bond 284 % 134%

Global Bond 322 % 367%

New Markets Income 306 % 409%

Because a high turnover rate increases transaction costs and may increase
taxable gains, FMR carefully weighs the anticipated benefits of short-term
investing against these consequences. An increased turnover rate is due to
a greater volume of shareholder purchase orders, short-term interest rate
volatility and other special market conditions.
For fiscal 1995 and 1994 , New Markets Income paid brokerage
commissions of $ 65,910 and $ 428,280 , respectively. Each fund
pays both commissions and spreads in connection with the placement of
portfolio transactions. FBSI is paid on a commission basis. During fiscal
1995 and 1994 , New Markets Income paid brokerage commissions
of $ 0 and $ 2,397 , respectively, to FBSI. During fiscal
1994 , this amounted to approximately 1 % of the aggregate
brokerage commissions paid by New Markets Income involving
approximately 4 % of the aggregate dollar amount of transactions for
which the fund paid brokerage commissions. For fiscal 1995
and 1994, Short-Term World Bond and Global Bond paid no
brokerage commissions. For fiscal 1993, the funds paid no brokerage
commissions.
During fiscal 1995 and 1994 , New Markets Income paid
$ 63,509 and $ 425,883 , respectively, in commissions to
brokerage firms that provided research services involving approximately
$ 12,543,886 and $99,692,929 of transactions. The provision of
research services was not necessarily a factor in the placement of all this
business with such firms. During fiscal 1995 and 1994 , Short-Term
World Bond and Global Bond paid no fees to brokerage firms that
provided research services.
From time to time the Trustees will review whether the recapture for the
benefit of the funds of some portion of the brokerage commissions or
similar fees paid by the funds on portfolio transactions is legally
permissible and advisable. Each fund seeks to recapture soliciting
broker-dealer fees on the tender of portfolio securities, but at present no
other recapture arrangements are in effect. The Trustees intend to continue
to review whether recapture opportunities are available and are legally
permissible and, if so, to determine in the exercise of their business
judgment whether it would be advisable for each fund to seek such
recapture.
Although the Trustees and officers of each fund are substantially the same
as those of other funds managed by FMR, investment decisions for each fund
are made independently from those of other funds managed by FMR or accounts
managed by FMR affiliates. It sometimes happens that the same security is
held in the portfolio of more than one of these funds or accounts.
Simultaneous transactions are inevitable when several funds and accounts
are managed by the same investment adviser, particularly when the same
security is suitable for the investment objective of more than one fund or
account.
When two or more funds are simultaneously engaged in the purchase or sale
of the same security, the prices and amounts are allocated in accordance
with procedures believed to be appropriate and equitable for each fund. In
some cases this system could have a detrimental effect on the price or
value of the security as far as each fund is concerned. In other cases,
however, the ability of the funds to participate in volume transactions
will produce better executions and prices for the funds. It is the current
opinion of the Trustees that the desirability of retaining FMR as
investment adviser to each fund outweighs any disadvantages that may be
said to exist from exposure to simultaneous transactions.
VALUATION OF PORTFOLIO SECURITIES
Each fund's portfolio securities, including ADRs, EDRs and other forms of
depositary receipts, are valued (i) by appraising portfolio securities that
are traded on the New York Stock Exchange (NYSE) or American Stock Exchange
at the closing bid price, or, if no closing price is available, at the last
traded bid price; and (ii) by appraising foreign securities as nearly as
possible in the manner described in clause (i) if traded on any other U.S.,
Canadian, or foreign exchange, and, if not so traded, on the basis of
closing over-the-counter bid prices, if available.
U.S. Treasury securities are valued on the basis of valuations furnished by
a pricing service which utilizes both dealer-supplied valuations and
electronic data processing techniques. Such techniques take into account
appropriate factors such as institutional-size trading in similar groups of
securities, yield, quality, coupon rate, maturity, type of issue, trading
characteristics, and other market data, without exclusive reliance upon
quoted prices or exchange or over-the-counter prices, since such valuations
are believed to reflect more accurately the fair value of such securities.
Foreign securities are valued at the closing bid price in the principal
market where they are traded, or, if closing prices are unavailable, at the
last traded bid price available prior to the time each fund's net asset
value (NAV) is determined. Foreign portfolio security prices are furnished
by quotation services expressed in the local currency's value. FSC
translates the value of foreign securities from the local currency into
U.S. dollars. Foreign security prices that cannot be obtained by the
quotation services are priced individually by FSC using dealer-supplied
quotations. Short-term obligations that mature in sixty days or less are
valued at amortized cost, which constitutes fair value. All other
securities and other assets are appraised at their fair value as determined
in good faith under consistently applied procedures under the general
supervision of the Board of Trustees.
Generally, trading in foreign securities, as well as corporate bonds, U.S.
government securities, money market instruments, and repurchase agreements,
is substantially completed each day at various times prior to the close of
the NYSE. The values of any such securities held by the funds are
determined as of such times for the purpose of computing each fund's NAV.
The procedures set forth in (i) and (ii) above need not be used to
determine the value of debt securities owned by a fund if, in the opinion
of the Board of Trustees, some other method (e.g., based on closing
over-the-counter bid prices in the case of debt instruments traded on an
exchange) would more accurately reflect the fair market value of such debt
securities. Foreign currency exchange rates are also generally determined
prior to the close of the NYSE. If an extraordinary event that is expected
to affect the value of a portfolio security materially occurs after the
close of an exchange on which that security is traded, then the security
will be valued at fair value as determined in good faith under the
direction of the Board of Trustees.
PERFORMANCE
The funds may quote performance in various ways. All performance
information supplied by the funds in advertising is historical and is not
intended to indicate future returns. Each fund's share price, yield, and
total return fluctuate in response to market conditions and other factors,
and the value of fund shares when redeemed may be more or less than their
original cost.
YIELD CALCULATIONS. Yields for a fund are computed by dividing the fund's
interest and dividend income for a given 30-day or one-month period, net of
expenses, by the average number of shares entitled to receive distributions
during the period, dividing this figure by the fund's net asset value (NAV)
at the end of the period, and annualizing the result (assuming compounding
of income) in order to arrive at an annual percentage rate. Yields do not
reflect New Markets Income's 1.00% redemption fee, which applies to shares
held less than 180 days. Income is calculated for purposes of yield
quotations in accordance with standardized methods applicable to all stock
and bond funds. Dividends from equity investments are treated as if they
were accrued on a daily basis, solely for the purposes of yield
calculations. In general, interest income is reduced with respect to bonds
trading at a premium over their par value by subtracting a portion of the
premium from income on a daily basis, and is increased with respect to
bonds trading at a discount by adding a portion of the discount to daily
income. For a fund's investments denominated in foreign currencies, income
and expenses are calculated first in their respective currencies, and are
then converted to U.S. dollars, either when they are actually converted or
at the end of the 30-day or one month period, whichever is earlier. Capital
gains and losses generally are excluded from the calculation as are gains
and losses from currency exchange rate fluctuations.
Income calculated for the purposes of calculating a fund's yield differs
from income as determined for other accounting purposes. Because of the
different accounting methods used, and because of the compounding of income
assumed in yield calculations, a fund's yield may not equal its
distribution rate, the income paid to your account, or the income reported
in the fund's financial statements.
In calculating the fund's yield, a fund may from time to time use a
portfolio security's coupon rate instead of its yield to maturity in order
to reflect the risk premium on that security. This practice will have the
effect of reducing the fund's yield.
Yield information may be useful in reviewing a fund's performance and in
providing a basis for comparison with other investment alternatives.
However, each fund's yield fluctuates, unlike investments that pay a fixed
interest rate over a stated period of time. When comparing investment
alternatives, investors should also note the quality and maturity of the
portfolio securities of respective investment companies they have chosen to
consider.
Investors should recognize that in periods of declining interest rates a
fund's yield will tend to be somewhat higher than prevailing market rates,
and in periods of rising interest rates the fund's yield will tend to be
somewhat lower. Also, when interest rates are falling, the inflow of net
new money to a fund from the continuous sale of its shares will likely be
invested in instruments producing lower yields than the balance of the
fund's holdings, thereby reducing the fund's current yield. In periods of
rising interest rates, the opposite can be expected to occur.
TOTAL RETURN CALCULATIONS. Total returns quoted in advertising reflect all
aspects of a fund's return, including the effect of reinvesting dividends
and capital gain distributions, and any change in the fund's NAV over a
stated period. Average annual total returns are calculated by determining
the growth or decline in value of a hypothetical historical investment in a
fund over a stated period, and then calculating the annually compounded
percentage rate that would have produced the same result if the rate of
growth or decline in value had been constant over the period. For example,
a cumulative total return of 100% over ten years would produce an average
annual total return of 7.18%, which is the steady annual rate of return
that would equal 100% growth on a compounded basis in ten years. While
average annual total returns are a convenient means of comparing investment
alternatives, investors should realize that a fund's performance is not
constant over time, but changes from year to year, and that average annual
total returns represent averaged figures as opposed to the actual
year-to-year performance of the fund.
In addition to average annual total returns, a fund may quote unaveraged or
cumulative total returns reflecting the simple change in value of an
investment over a stated period. Average annual and cumulative total
returns may be quoted as a percentage or as a dollar amount, and may be
calculated for a single investment, a series of investments, or a series of
redemptions, over any time period. Total returns may be broken down into
their components of income and capital (including capital gains and changes
in share price) in order to illustrate the relationship of these factors
and their contributions to total return. Total returns may be quoted on a
before-tax or after-tax basis and may or may not include the effect of New
Markets Income's 1.00% redemption fee on shares held less than 180 days.
Excluding a fund's redemption fee from a total return calculation produces
a higher total return figure. Total returns, yields, and other performance
information may be quoted numerically or in a table, graph, or similar
illustration.
NET ASSET VALUE. Charts and graphs using a fund's net asset values,
adjusted net asset values, and benchmark indices may be used to exhibit
performance. An adjusted NAV includes any distributions paid by a fund and
reflects all elements of its return. Unless otherwise indicated, a fund's
adjusted NAVs are not adjusted for sales charges, if any.
HISTORICAL FUND RESULTS. The following tables show each fund's yields and
total returns for periods ended December 31, 1995. Total return figures do
not include the effect of New Markets Income's 1.00% redemption fee,
applicable to shares held less than 180 days.

<TABLE>
<CAPTION>
<S>
<C> <C> <C> <C> <C> <C> <C>
Average Annual Total Returns Cumulative Total Returns

30-Day One Five Life of One Five Life of
Yield Year Years Fund* Year Years Fund*

Short-Term World Bond
4.86% 7.79% n/a 4.63% 7.79% n/a 21.18%

Global Bond
4.56% 6.66% 5.08% 7.55% 6.66% 28.11% 92.68%

New Markets Income
10.76% 7.97% n/a 8.77% 7.97% n/a 25.10%

</TABLE>

* From commencement of operations: Short-Term World Bond - October
4, 1991; Global Bond - December 30, 1986; New Markets Income - May 4, 1993.
Note: If FMR had not reimbursed certain fund expenses during these periods,
the funds' total returns would have been lower.
The following table s show the income and capital elements of each
fund's cumulative total return. The table compares the fund's return to the
record of the Standard & Poor's Composite Index of 500 Stocks (S&P 500),
the Dow Jones Industrial Average (DJIA), and the cost of living (measured
by the Consumer Price Index, or CPI) over the same period. The CPI
information is as of the month end closest to the initial investment date
for each fund. Returns for the funds may be compared to the following
indices: the J.P. Morgan Emerging Markets Bond Index and the J.P. Morgan
Emerging Markets Bond Index Plus , broad measure s of bond
performance in developing countries; the Salomon Brothers World Government
Bond Index, which measures the performance of bonds issued by the U.S. and
foreign governments; and the Lehman Brothers 1-3 Year Government Bond
Index, which measures the performance of short-term U.S. government bonds.
The S&P 500 and DJIA comparisons are provided to show how the fund's total
return compared to the record of a broad average of common stocks and a
narrower set of stocks of major industrial companies, respectively, over
the same period. Of course, since the fund invests in fixed-income
securities, common stocks represent a different type of investment from the
fund. Common stocks generally offer greater growth potential than a fund,
but generally experience greater price volatility, which means greater
potential for loss. In addition, common stocks generally provide lower
income than a fixed-income investment such as the funds. Figures for the
S&P 500 and DJIA are based on the prices of unmanaged groups of stocks and,
unlike a fund's returns, do not include the effect of paying brokerage
commissions or other costs of investing.
SHORT-TERM WORLD BOND . During the period from October 4, 1991
(commencement of operations) to December 31, 1995, a hypothetical $10,000
investment in Short-Term World Bond would have grown to
$ 12,118 , assuming all distributions were reinvested. This was a
period of fluctuating interest rates and bond prices and the figures below
should not be considered representative of the dividend income or capital
gain or loss that could be realized from an investment in the fund today.

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FIDELITY Short-Term World Bond FUND INDICES

Year Ended Value of Value of Value of Total Value S&P 500 DJIA Cost of
12/31 Initial Reinvested Reinvested Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions

1995 $ 9,010 $ 3,108 $ 0 $ 12,118 $ 18,056 $ 19,265 $ 11,188

1994 8,910 2,333 0 11,243 13,124 14,091 10,911

1993 10,190 1,745 0 11,935 12,954 13,423 10,627

1992 9,680 920 0 10,600 11,768 11,474 10,343

1991* 9,930 182 0 10,112 10,932 10,693 10,051

</TABLE>

* From October 4, 1991 (commencement of operations).
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 made on October 4,
1991, the net amount invested in fund shares was $10,000. The cost of the
initial investment ($10,000), together with the aggregate cost of
reinvested dividends and capital gain distributions for the period covered
(their cash value at the time they were reinvested), amounted to
$ 13,299 . If distributions had not been reinvested, the amount of
distributions earned from the fund over time would have been smaller, and
the cash payments for the period would have amounted to $ 2,852 for
dividends and $ 0 for capital gains distributions. Tax consequences
of different investments (with the exception of foreign tax withholdings)
have not been factored into the above figures.
GLOBAL BOND. During the period from December 30, 1986 (commencement of
operations) to December 31, 1995, a hypothetical $10,000 investment in
Global Bond would have grown to $ 19,268 , assuming all distributions
were reinvested. This was a period of fluctuating interest rates and bond
prices and the figures below should not be considered representative of the
dividend income or capital gain or loss that could be realized from an
investment in the fund today.

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FIDELITY Global Bond FUND INDICES

Year Ended Value of Value of Value of Total Value S&P 500 DJIA Cost of
12/31 Initial Reinvested Reinvested Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions

1995 $ 9,940 $ 8,964 $ 364 $ 19,268 $ 33,319 $ 35,585 $ 13,891

1994 9,880 7,82 5 361 18,06 6 24,218 26,027 13,548

1993 12,610 8,550 427 21,587 23,903 24,794 13,195

1992 11,340 6,368 0 17,708 21,715 21,193 12,842

1991 11,900 5,062 0 16,962 20,173 19,752 12,480

1990 11,380 3,661 0 15,041 15,460 15,885 12,109

1989 11,080 2,316 0 13,396 15,957 15,971 11,412

1988 10,720 1,692 0 12,412 12,118 12,121 10,905

1987 11,210 763 0 11,973 10,392 10,456 10,443

1986* 10,050 0 0 10,050 9,872 9,917 10,000

</TABLE>

* From December 30, 1986 (commencement of operations).
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 made on December
30, 1986, the net amount invested in fund shares was $10,000. The cost of
the initial investment ($10,000), together with the aggregate cost of
reinvested dividends and capital gain distributions for the period covered
(their cash value at the time they were reinvested), amounted to
$ 20,468 . If distributions had not been reinvested, the amount of
distributions earned from the fund over time would have been smaller, and
cash payments for the period would have amounted to $ 7,238 for
dividends and $ 270 for capital gains distributions. Tax consequences
of different investments (with the exception of foreign tax withholdings)
have not been factored into the above figures.
NEW MARKETS INCOME. During the period from May 4, 1993 (commencement of
operations) to December 31, 1995, a hypothetical $10,000 investment in New
Markets Income would have grown to $ 12,510 , assuming all
distributions were reinvested. This was a period of fluctuating interest
rates and bond prices and the figures below should not be considered
representative of the dividend income or capital gain or loss that could be
realized from an investment in the fund today.

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FIDELITY New Markets Income FUND INDICES

Year Ended Value of Value of Value of Total Value S&P 500 DJIA Cost of
12/31 Initial Reinvested Reinvested Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions

1995 $ 9,950 $ 2,263 $ 298 $ 12,510 $ 14,983 $ 15,921 $ 10,660

1994 10,190 1,091 305 11,586 10,891 11,645 10,396

1993* 13,070 632 182 13,884 10,749 11,093 10,125

</TABLE>

* From May 4, 1993 (commencement of operations).
Explanatory Notes: With an initial investment of $10,000 made on May 4,
1993, the net amount invested in fund shares was $10,000. The cost of the
initial investment ($10,000), together with the aggregate cost of
reinvested dividends and capital gain distributions for the period covered
(their cash value at the time they were reinvested), amounted to
$ 12,669 . If distributions had not been reinvested, the amount of
distributions earned from the fund over time would have been smaller, and
cash payments for the period would have amounted to $ 2,030 for
dividends and $ 370 for capital gains distributions. Tax consequences
of different investments (with the exception of foreign tax withholdings)
have not been factored into the above figures.
INTERNATIONAL INDICES, MARKET CAPITALIZATION, AND NATIONAL STOCK MARKET
RETURN
The following tables show the total market capitalization of certain
countries according to the Morgan Stanley Capital International Indices
database, the total market capitalization of Latin American countries
according to the International Finance Corporation Emerging Markets
database, and the performance of national stock markets as measured in U.S.
dollars by the Morgan Stanley Capital International stock market indices
for the twelve months ended December 31, 199 5 . Of course, these
results are not indicative of future stock market performance or the funds'
performance. Market conditions during the periods measured fluctuated
widely. Brokerage commissions and other fees are not factored into the
values of the indices.
MARKET CAPITALIZATION. Companies outside the U.S. now make up nearly
two-thirds of the world's stock market capitalization. According to Morgan
Stanley Capital International, the size of the markets as measured in U.S.
dollars grew from $2,886 billion in 1984 to $13,182 billion in 1994.
The following table measures the total market capitalization of certain
countries according to the Morgan Stanley Capital International Indices
database. The value of the markets are measured in billions of U.S. dollars
as of December 31, 199 5 .
TOTAL MARKET CAPITALIZATION
Australia $245 Japan $3,583

Austria 37 Netherlands 304

Belgium 101 Norway 43

Canada 333 Singapore/Malaysia 149

Denmark 56 Spain 152

France 505 Sweden 177

Germany 579 Switzerland 402

Hong Kong 274 United Kingdom 1,354

Italy 180 United States 6,338

The following table measures the total market capitalization of Latin
American countries according to the International Finance Corporation
Emerging Markets database. The value of the markets is measured in millions
of U.S. dollars as of December 31, 199 5 .
TOTAL MARKET CAPITALIZATION - LATIN AMERICA
Argentina $ 37,909

Brazil 148,910

Chile 72,969

Colombia 10,134

Mexico 97,384

Venezuela 4,001

Total Latin America 371,307

NATIONAL STOCK MARKET PERFORMANCE. Certain national stock markets have
outperformed the U.S. stock market. The table below represents the
performance of national stock markets as measured in U.S. dollars by the
Morgan Stanley Capital International stock market indices for the twelve
months ended December 31, 199 5 . The table measures total return
based on the period's change in price, dividends paid on stocks in the
index, and the effect of reinvesting dividends net of any applicable
foreign taxes. These are unmanaged indices composed of a sampling of
selected companies representing an approximation of the market structure of
the designated country.
STOCK MARKET PERFORMANCE (CUMULATIVE TOTAL RETURNS)
MEASURED IN U.S. DOLLARS
Australia $ 11.19 Japan $ 0.69

Austria -4.72 Malaysia 5.16

Belgium 25.88 Netherlands 27.71

Canada 18.31 New Zealand 20.85

Denmark 18.78 Norway 6.02

Finland 4.56 Singapore 6.45

France 14.12 Spain 29.83

Germany 16.41 Sweden 33.36

Hong Kong 22.57 Switzerland 44.12

Ireland 22.38 United Kingdom 21.27

Italy 1.05 United States 37.14

STOCK MARKET PERFORMANCE
FIVE YEARS ENDED TEN YEARS ENDED

DECEMBER 31, 199 5 DECEMBER 31, 199 5

Germany 9.91% 6.80%

Hong Kong 30.16 23.83

Japan 5.59 12.66

Spain 7.71 16.77

United Kingdom 10.66 15.02

United States 15.94 13.72

These results are not indicative of future stock market performance or any
fund's performance. Market conditions during the periods measured
fluctuated widely. Brokerage commissions and other fees are not factored
into the values of the indices.
PERFORMANCE COMPARISONS. A fund's performance may be compared to the
performance of other mutual funds in general, or to the performance of
particular types of mutual funds. These comparisons may be expressed as
mutual fund rankings prepared by Lipper Analytical Services, Inc. (Lipper),
an independent service located in Summit, New Jersey that monitors the
performance of mutual funds. Lipper generally ranks funds on the basis of
total return, assuming reinvestment of distributions, but does not take
sales charges or redemption fees into consideration, and is prepared
without regard to tax consequences. Lipper may also rank funds based on
yield. In addition to the mutual fund rankings, a fund's performance may be
compared to stock, bond, and money market mutual fund performance indices
prepared by Lipper or other organizations. When comparing these indices, it
is important to remember the risk and return characteristics of each type
of investment. For example, while stock mutual funds may offer higher
potential returns, they also carry the highest degree of share price
volatility. Likewise, money market funds may offer greater stability of
principal, but generally do not offer the higher potential returns
available from stock mutual funds.
From time to time, a fund's performance may also be compared to other
mutual funds tracked by financial or business publications and periodicals.
For example, the fund may quote Morningstar, Inc. in its advertising
materials. Morningstar, Inc. is a mutual fund rating service that rates
mutual funds on the basis of risk-adjusted performance. Rankings that
compare the performance of Fidelity funds to one another in appropriate
categories over specific periods of time may also be quoted in advertising.
A fund may be compared in advertising to Certificates of Deposit (CDs) or
other investments issued by banks or other depository institutions. Mutual
funds differ from bank investments in several respects. For example, a fund
may offer greater liquidity or higher potential returns than CDs, a fund
does not guarantee your principal or your return, and fund shares are not
FDIC insured.
Fidelity may provide information designed to help individuals understand
their investment goals and explore various financial strategies. Such
information may include information about current economic, market, and
political conditions; materials that describe general principles of
investing, such as asset allocation, diversification, risk tolerance, and
goal setting; questionnaires designed to help create a personal financial
profile; worksheets used to project savings needs based on assumed rates of
inflation and hypothetical rates of return; and action plans offering
investment alternatives. Materials may also include discussions of
Fidelity's asset allocation funds and other Fidelity funds, products, and
services.
Ibbotson Associates of Chicago, Illinois (Ibbotson) provides historical
returns of the capital markets in the United States, including common
stocks, small capitalization stocks, long-term corporate bonds,
intermediate-term government bonds, long-term government bonds, Treasury
bills, the U.S. rate of inflation (based on the CPI), and combinations of
various capital markets. The performance of these capital markets is based
on the returns of different indices.
Fidelity funds may use the performance of these capital markets in order to
demonstrate general risk-versus-reward investment scenarios. Performance
comparisons may also include the value of a hypothetical investment in any
of these capital markets. The risks associated with the security types in
any capital market may or may not correspond directly to those of the
funds. Ibbotson calculates total returns in the same method as the funds.
The funds may also compare performance to that of other compilations or
indices that may be developed and made available in the future.
A fund may compare its performance or the performance of securities in
which it may invest to averages published by IBC USA (Publications), Inc.
of Ashland, Massachusetts. These averages assume reinvestment of
distributions. The IBC/Donoghue's MONEY FUND AVERAGES(trademark)/All
Taxable, which is reported in the MONEY FUND REPORT(registered trademark),
covers over 771 taxable money market funds. The Bond Fund Report
AverageS(trademark)/All Taxable, which is reported in the BOND FUND
REPORT(registered trademark), covers over 539 taxable bond funds.
When evaluating comparisons to money market funds, investors should
consider the relevant differences in investment objectives and policies.
Specifically, money market funds invest in short-term, high-quality
instruments and seek to maintain a stable $1.00 share price. Bond funds,
however, invests in longer-term instruments and its share price changes
daily in response to a variety of factors.
In advertising materials, Fidelity may reference or discuss its products
and services, which may include other Fidelity funds; retirement investing;
brokerage products and services; model portfolios or allocations; saving
for college or other goals; charitable giving; and the Fidelity credit
card. In addition, Fidelity may quote or reprint financial or business
publications and periodicals as they relate to current economic and
political conditions, fund management, portfolio composition, investment
philosophy, investment techniques, the desirability of owning a particular
mutual fund, and Fidelity services and products. Fidelity may also reprint,
and use as advertising and sales literature, articles from Fidelity Focus,
a quarterly magazine provided free of charge to Fidelity fund
shareholders.
A fund may present its fund number, Quotron(trademark) number, and CUSIP
number, and discuss or quote its current portfolio manager.
VOLATILITY. A fund may quote various measures of volatility and benchmark
correlation in advertising. In addition, the fund may compare these
measures to those of other funds. Measures of volatility seek to compare
the fund's historical share price fluctuations or total returns to those of
a benchmark. Measures of benchmark correlation indicate how valid a
comparative benchmark may be. All measures of volatility and correlation
are calculated using averages of historical data. In advertising, a fund
may also discuss or illustrate examples of interest rate sensitivity.
MOMENTUM INDICATORS indicate a fund's price movements over specific periods
of time. Each point on the momentum indicator represents the fund's
percentage change in price movements over that period.
A fund may advertise examples of the effects of periodic investment plans,
including the principle of dollar cost averaging. In such a program, an
investor invests a fixed dollar amount in a fund at periodic intervals,
thereby purchasing fewer shares when prices are high and more shares when
prices are low. While such a strategy does not assure a profit or guard
against loss in a declining market, the investor's average cost per share
can be lower than if fixed numbers of shares are purchased at the same
intervals. In evaluating such a plan, investors should consider their
ability to continue purchasing shares during periods of low price levels.
A fund may be available for purchase through retirement plans or other
programs offering deferral of, or exemption from, income taxes, which may
produce superior after-tax returns over time. For example, a $1,000
investment earning a taxable return of 10% annually would have an after-tax
value of $1,949 after ten years, assuming tax was deducted from the return
each year at a 31% rate. An equivalent tax-deferred investment would have
an after-tax value of $2,100 after ten years, assuming tax was deducted at
a 31% rate from the tax-deferred earnings at the end of the ten-year
period.
As of December 31, 1995, FMR advised over $ 26.5 billion in tax-free
fund assets, $ 81 billion in money market fund assets, $ 240
billion in equity fund assets, $ 49 billion in international fund
assets, and $ 23 billion in Spartan fund assets. The funds may
reference the growth and variety of money market mutual funds and the
adviser's innovation and participation in the industry. The equity funds
under management figure represents the largest amount of equity fund assets
under management by a mutual fund investment adviser in the United States,
making FMR America's leading equity (stock) fund manager. FMR, its
subsidiaries, and affiliates maintain a worldwide information and
communications network for the purpose of researching and managing
investments abroad.
In addition to performance rankings, each fund may compare its total
expense ratio to the average total expense ratio of similar funds tracked
by Lipper. A fund's total expense ratio is a significant factor in
comparing bond and money market investments because of its effect on yield.
ADDITIONAL PURCHASE AND REDEMPTION INFORMATION
Each fund is open for business and its net asset value per share (NAV) is
calculated each day the New York Stock Exchange (NYSE) is open for trading.
The NYSE has designated the following holiday closings for 1996: New Year's
Day, Presidents' Day (observed), Good Friday, Memorial Day (observed),
Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. Although
FMR expects the same holiday schedule to be observed in the future, the
NYSE may modify its holiday schedule at any time. In addition, the funds
will not process wire purchases and redemptions on days when the Federal
Reserve Wire System is closed.
FSC normally determines each fund's NAV as of the close of the NYSE
(normally 4:00 p.m. Eastern time). However, NAV may be calculated earlier
if trading on the NYSE is restricted or as permitted by the Securities and
Exchange Commission (SEC). To the extent that portfolio securities are
traded in other markets on days when the NYSE is closed, a fund's NAV may
be affected on days when investors do not have access to the fund to
purchase or redeem shares. In addition, trading in some of a fund's
portfolio securities may not occur on days when the fund is open for
business.
If the Trustees determine that existing conditions make cash payments
undesirable, redemption payments may be made in whole or in part in
securities or other property, valued for this purpose as they are valued in
computing a fund's NAV. Shareholders receiving securities or other property
on redemption may realize a gain or loss for tax purposes, and will incur
any costs of sale, as well as the associated inconveniences.
Pursuant to Rule 11a-3 under the Investment Company Act of 1940 (the 1940
Act), each fund is required to give shareholders at least 60 days' notice
prior to terminating or modifying its exchange privilege. Under the Rule,
the 60-day notification requirement may be waived if (i) the only effect of
a modification would be to reduce or eliminate an administrative fee,
redemption fee, or deferred sales charge ordinarily payable at the time of
an exchange, or (ii) the fund suspends the redemption of the shares to be
exchanged as permitted under the 1940 Act or the rules and regulations
thereunder, or the fund to be acquired suspends the sale of its shares
because it is unable to invest amounts effectively in accordance with its
investment objective and policies.
In the Prospectus, each fund has notified shareholders that it reserves the
right at any time, without prior notice, to refuse exchange purchases by
any person or group if, in FMR's judgment, the fund would be unable to
invest effectively in accordance with its investment objective and
policies, or would otherwise potentially be adversely affected.
DISTRIBUTIONS AND TAXES
DISTRIBUTIONS. If you request to have distributions mailed to you and the
U.S. Postal Service cannot deliver your checks, or if your checks remain
uncashed for six months, Fidelity may reinvest your distributions at the
then-current NAV. All subsequent distributions will then be reinvested
until you provide Fidelity with alternate instructions.
DIVIDENDS. Because each fund invests significantly in foreign securities,
corporate shareholders should not expect fund dividends to qualify for the
dividends-received deduction. Short-term capital gains are distributed as
dividend income, but do not qualify for the dividends-received deduction.
Each fund will notify corporate shareholders annually of the percentage of
fund dividends that qualify for the dividends-received deduction. Gains
(losses) attributable to foreign currency fluctuations are generally
taxable as ordinary income, and therefore will increase (decrease) dividend
distributions. As a consequence, FMR may adjust a fund's income
distributions to reflect the effect of currency fluctuations. However, if
foreign currency losses exceed a fund's net investment income during a
taxable year, all or a portion of the distributions made in the same
taxable year would be recharacterized as a return of capital to
shareholders, thereby reducing each shareholder's cost basis in his or her
fund. Each fund will send each shareholder a notice in January describing
the tax status of dividend and capital gain distributions for the prior
year.
CAPITAL GAIN DISTRIBUTIONS. Long-term capital gains earned by each fund on
the sale of securities and distributed to shareholders are federally
taxable as long-term capital gains, regardless of the length of time
shareholders have held their shares. If a shareholder receives a long-term
capital gain distribution on shares of a fund, and such shares are held six
months or less and are sold at a loss, the portion of the loss equal to the
amount of the long-term capital gain distribution will be considered a
long-term loss for tax purposes. Short-term capital gains distributed by
each fund are taxable to shareholders as dividends, not as capital gains.
FOREIGN TAXES. Foreign governments may withhold taxes on dividends and
interest paid with respect to foreign securities. Foreign governments may
also impose taxes on other payments or gains with respect to foreign
securities. If, at the close of its fiscal year, more than 50% of a fund's
total assets are invested in securities of foreign issuers, the fund may
elect to pass through foreign taxes paid and thereby allow shareholders to
take a credit or deduction on their individual tax returns.
TAX STATUS OF THE FUNDS. Each fund intends to qualify each year as a
"regulated investment company" for tax purposes so that it will not be
liable for federal tax on income and capital gains distributed to
shareholders. In order to qualify as a regulated investment company and
avoid being subject to federal income or excise taxes at the fund level,
each fund intends to distribute substantially all of its net investment
income and net realized capital gains within each calendar year as well as
on a fiscal year basis. Each fund intends to comply with other tax rules
applicable to regulated investment companies, including a requirement that
capital gains from the sale of securities held less than three months
constitute less than 30% of the fund's gross income for each fiscal year.
Gains from some forward currency contracts, futures contracts, and options
are included in this 30% calculation, which may limit a fund's investments
in such instruments.
Each fund is treated as a separate entity from the other funds of Fidelity
Investment Trust for tax purposes.
OTHER TAX INFORMATION. The information above is only a summary of some of
the tax consequences generally affecting each fund and its shareholders,
and no attempt has been made to discuss individual tax consequences. In
addition to federal income taxes, shareholders may be subject to state and
local taxes on fund distributions, and shares may be subject to state and
local personal property taxes. Investors should consult their tax advisers
to determine whether a fund is suitable to their particular tax situation.
FMR
All of the stock of FMR is owned by FMR Corp., its parent organized in
1972. The voting common stock of FMR Corp. is divided into two classes.
Class B is held predominantly by members of the Edward C. Johnson 3d family
and is entitled to 49% of the vote on any matter acted upon by the voting
common stock. Class A is held predominantly by non-Johnson family member
employees of FMR Corp. and its affiliates and is entitled to 51% of the
vote on any such matter. The Johnson family group and all other Class B
shareholders have entered into a shareholders' voting agreement under which
all Class B shares will be voted in accordance with the majority vote of
Class B shares. Under the Investment Company Act of 1940 (1940 Act),
control of a company is presumed where one individual or group of
individuals owns more than 25% of the voting stock of that company.
Therefore, through their ownership of voting common stock and the execution
of the shareholders' voting agreement, members of the Johnson family may be
deemed, under the 1940 Act, to form a controlling group with respect to FMR
Corp.
At present, the principal operating activities of FMR Corp. are those
conducted by three of its divisions as follows: FSC, which is the transfer
and shareholder servicing agent for certain of the funds advised by FMR;
Fidelity Investments Institutional Operations Company, which performs
shareholder servicing functions for institutional customers and funds sold
through intermediaries; and Fidelity Investments Retail Marketing Company,
which provides marketing services to various companies within the Fidelity
organization.
Fidelity investment personnel may invest in securities for their own
account pursuant to a code of ethics that sets forth all employees'
fiduciary responsibilities regarding the funds, establishes procedures for
personal investing and restricts certain transactions. For example, all
personal trades in most securities require pre-clearance, and participation
in initial public offerings is prohibited. In addition, restrictions on the
timing of personal investing in relation to trades by Fidelity funds and on
short-term trading have been adopted.
TRUSTEES AND OFFICERS
The Trustees and executive officers of the trust are listed below. Except
as indicated, each individual has held the office shown or other offices in
the same company for the last five years. All persons named as Trustees
also serve in similar capacities for other funds advised by FMR. The
business address of each Trustee and officer who is an "interested person"
(as defined in the Investment Company Act of 1940) is 82 Devonshire
Street, Boston, Massachusetts 02109, which is also the address of FMR. The
business address of all the other Trustees is Fidelity Investments, P.O.
Box 9235, Boston, Massachusetts 02205-9235. Those Trustees who are
"interested persons" by virtue of their affiliation with either the trust
or FMR are indicated by an asterisk (*).
*EDWARD C. JOHNSON 3d ( 65 ), Trustee and President, is Chairman,
Chief Executive Officer and a Director of FMR Corp.; a Director and
Chairman of the Board and of the Executive Committee of FMR; Chairman and a
Director of FMR Texas Inc., Fidelity Management & Research (U.K.) Inc., and
Fidelity Management & Research (Far East) Inc.
*J. GARY BURKHEAD ( 54 ), Trustee and Senior Vice President, is
President of FMR; and President and a Director of FMR Texas Inc., Fidelity
Management & Research (U.K.) Inc., and Fidelity Management & Research (Far
East) Inc.
RALPH F. COX ( 63 ), Trustee (1991), is a consultant to Western Mining
Corporation (1994). Prior to February 1994, he was President of Greenhill
Petroleum Corporation (petroleum exploration and production, 1990). Until
March 1990, Mr. Cox was President and Chief Operating Officer of Union
Pacific Resources Company (exploration and production). He is a Director of
Sanifill Corporation (non-hazardous waste, 1993) and CH2M Hill Companies
(engineering). In addition, he served on the Board of Directors of the
Norton Company (manufacturer of industrial devices, 1983-1990) and
continues to serve on the Board of Directors of the Texas State Chamber of
Commerce, and is a member of advisory boards of Texas A&M University and
the University of Texas at Austin.
PHYLLIS BURKE DAVIS ( 64 ), Trustee (1992). Prior to her retirement in
September 1991, Mrs. Davis was the Senior Vice President of Corporate
Affairs of Avon Products, Inc. She is currently a Director of BellSouth
Corporation (telecommunications), Eaton Corporation (manufacturing, 1991),
and the TJX Companies, Inc. (retail stores, 1990), and previously served as
a Director of Hallmark Cards, Inc. (1985-1991) and Nabisco Brands, Inc. In
addition, she is a member of the President's Advisory Council of The
University of Vermont School of Business Administration.
RICHARD J. FLYNN ( 71 ), Trustee, is a financial consultant. Prior to
September 1986, Mr. Flynn was Vice Chairman and a Director of the Norton
Company (manufacturer of industrial devices). He is currently a Trustee of
College of the Holy Cross and Old Sturbridge Village, Inc., and he
previously served as a Director of Mechanics Bank (1971-1995).
E. BRADLEY JONES ( 68 ), Trustee (1990). Prior to his retirement in
1984, Mr. Jones was Chairman and Chief Executive Officer of LTV Steel
Company. He is a Director of TRW Inc. (original equipment and replacement
products), Cleveland-Cliffs Inc. (mining), Consolidated Rail Corporation,
Birmingham Steel Corporation, and RPM, Inc. (manufacturer of chemical
products, 1990), and he previously served as a Director of NACCO
Industries, Inc. (mining and marketing, 1985-1995) and Hyster-Yale
Materials Handling, Inc. (1985-1995). In addition, he serves as a Trustee
of First Union Real Estate Investments, a Trustee and member of the
Executive Committee of the Cleveland Clinic Foundation, a Trustee and
member of the Executive Committee of University School (Cleveland), and a
Trustee of Cleveland Clinic Florida.
DONALD J. KIRK ( 63 ), Trustee, is Executive-in-Residence (1995) at
Columbia University Graduate School of Business and a financial consultant.
From 1987 to January 1995, Mr. Kirk was a Professor at Columbia University
Graduate School of Business. Prior to 1987, he was Chairman of the
Financial Accounting Standards Board. Mr. Kirk is a Director of General Re
Corporation (reinsurance), and he previously served as a Director of
Valuation Research Corp. (appraisals and valuations, 1993-1995). In
addition, he serves as Chairman of the Board of Directors of the National
Arts Stabilization Fund, Vice Chairman of the Board of Trustees of the
Greenwich Hospital Association, and as a Member of the Public Oversight
Board of the American Institute of Certified Public Accountants' SEC
Practice Section (1995).
*PETER S. LYNCH ( 52 ), Trustee (1990) is Vice Chairman and Director
of FMR (1992). Prior to May 31, 1990, he was a Director of FMR and
Executive Vice President of FMR (a position he held until March 31, 1991);
Vice President of Fidelity Magellan Fund and FMR Growth Group Leader; and
Managing Director of FMR Corp. Mr. Lynch was also Vice President of
Fidelity Investments Corporate Services (1991-1992). He is a Director of
W.R. Grace & Co. (chemicals) and Morrison Knudsen Corporation (engineering
and construction). In addition, he serves as a Trustee of Boston College,
Massachusetts Eye & Ear Infirmary, Historic Deerfield (1989) and Society
for the Preservation of New England Antiquities, and as an Overseer of the
Museum of Fine Arts of Boston (1990).
GERALD C. McDONOUGH ( 66 ), Trustee, is Chairman of G.M. Management
Group (strategic advisory services). Prior to his retirement in July 1988,
he was Chairman and Chief Executive Officer of Leaseway Transportation
Corp. (physical distribution services). Mr. McDonough is a Director of
ACME-Cleveland Corp. (metal working, telecommunications and electronic
products), Brush-Wellman Inc. (metal refining), York International Corp.
(air conditioning and refrigeration), Commercial Intertech Corp. (water
treatment equipment, 1992), and Associated Estates Realty Corporation (a
real estate investment trust, 1993).
EDWARD H. MALONE (71), Trustee. Prior to his retirement in 1985, Mr.
Malone was Chairman, General Electric Investment Corporation and a Vice
President of General Electric Company. He is a Director of Allegheny Power
Systems, Inc. (electric utility), General Re Corporation (reinsurance) and
Mattel Inc. (toy manufacturer). In addition, he serves as a Trustee of the
Naples Philharmonic Center for the Arts and Rensselaer Polytechnic
Institute, and he is a member of the Advisory Boards of Butler Capital
Corporation Funds and Warburg, Pincus Partnership Funds.
MARVIN L. MANN ( 62 ), Trustee (1993) is Chairman of the Board,
President, and Chief Executive Officer of Lexmark International, Inc.
(office machines, 1991). Prior to 1991, he held the positions of Vice
President of International Business Machines Corporation ("IBM") and
President and General Manager of various IBM divisions and subsidiaries.
Mr. Mann is a Director of M.A. Hanna Company (chemicals, 1993) and Infomart
(marketing services, 1991), a Trammell Crow Co. In addition, he serves as
the Campaign Vice Chairman of the Tri-State United Way (1993) and is a
member of the University of Alabama President's Cabinet (1990).
THOMAS R. WILLIAMS ( 67 ), Trustee, is President of The Wales Group,
Inc. (management and financial advisory services). Prior to retiring in
1987, Mr. Williams served as Chairman of the Board of First Wachovia
Corporation (bank holding company), and Chairman and Chief Executive
Officer of The First National Bank of Atlanta and First Atlanta Corporation
(bank holding company). He is currently a Director of BellSouth Corporation
(telecommunications), ConAgra, Inc. (agricultural products), Fisher
Business Systems, Inc. (computer software), Georgia Power Company (electric
utility), Gerber Alley & Associates, Inc. (computer software), National
Life Insurance Company of Vermont, American Software, Inc., and AppleSouth,
Inc. (restaurants, 1992).
ROBERT A. LAWRENCE ( 43 ), Vice President (1994), is Vice President of
Fidelity's high income funds and Senior Vice President of FMR (1993). Prior
to joining FMR, Mr. Lawrence was Managing Director of the High Yield
Department for Citicorp (1984-1991).
FRED L. HENNING, JR. ( 56 ), Vice President, is Vice President of
Fidelity's money market (1994) and fixed-income (1995) funds and Senior
Vice President of FMR Texas Inc.
ARTHUR S. LORING ( 48 ), Secretary, is Senior Vice President (1993)
and General Counsel of FMR, Vice President-Legal of FMR Corp., and Vice
President and Clerk of FDC.
KENNETH A. RATHGEBER ( 48 ), Treasurer (1995), is Treasurer of the
Fidelity funds and is an employee of FMR (1995). Before joining FMR, Mr.
Rathgeber was a Vice President of Goldman Sachs & Co. (1978-1995), where he
served in various positions, including Vice President of Proprietary
Accounting (1988-1992), Global Co-Controller (1992-1994), and Chief
Operations Officer of Goldman Sachs (Asia) LLC (1994-1995)
JOHN H. COSTELLO ( 49 ), Assistant Treasurer, is an employee of FMR.
LEONARD M. RUSH ( 49 ), Assistant Treasurer (1994), is an employee of
FMR (1994). Prior to becoming Assistant Treasurer of the Fidelity funds,
Mr. Rush was Chief Compliance Officer of FMR Corp. (1993-1994); Chief
Financial Officer of Fidelity Brokerage Services, Inc. (1990-1993); and
Vice President, Assistant Controller, and Director of the Accounting
Department - First Boston Corp. (1986-1990).
The following table sets forth information describing the compensation of
each current trustee of each fund for his or her services as trustee for
the fiscal year ended December 31, 1995.
COMPENSATION TABLE
Aggregate Compensation

<ERROR: WIDE TABLE>
ERROR: The Following Table: "Tran_fees" is Too Wide!
Table Width is 153 characters.

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
J. Gary Ralph F. Phyllis Richard Edward C. E. Donald Peter S. Gerald C. Edward Marvin L. Thomas
Burkhead** Cox Burke J. Flynn Johnson 3d** Bradley J. Kirk Lynch** McDonough H. Mann R.
Davis Jones Malone Williams

Short-Term $ 0 $ 87 $ 85 $ 108 $ 0 $ 87 $ 90 $ 0 $ 88 $ 87 $ 87 $ 85
World Bond

Global Bond 0 129 126 161 0 129 134 0 130 129 129 127

New Markets 0 73 71 91 0 73 75 0 73 73 73 71
Income

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C>
Trustees Pension or Estimated Annual Total
Retirement Benefits Upon Compensation
Benefits Accrued Retirement from from the Fund
as Part of Fund the Complex*
Expenses from the Fund Complex*
Fund Complex*

J. Gary Burkhead** $ 0 $ 0 $ 0

Ralph F. Cox 5,200 52,000 128,000

Phyllis Burke Davis 5,200 52,000 12 5 ,000

Richard J. Flynn 0 52,000 1 60 ,500

Edward C. Johnson 3d** 0 0 0

E. Bradley Jones 5,200 49,400 12 8,0 00

Donald J. Kirk 5,200 52,000 12 9,5 00

Peter S. Lynch** 0 0 0

Gerald C. McDonough 5,200 52,000 12 8 ,000

Edward H. Malone 5,200 44,200 128,000

Marvin L. Mann 5,200 52,000 12 8 ,000

Thomas R. Williams 5,200 52,000 12 5,0 00

</TABLE>

* Information is as December 31, 199 5 for 219 funds in the
complex.
** Interested trustees of the fund are compensated by FMR.
The non-interested Trustees may elect to defer receipt of all or a
percentage of their annual fees in accordance with the terms of a Deferred
Compensation Plan (the Plan). Under the Plan, compensation deferred by a
Trustee is periodically adjusted as though an equivalent amount had been
invested and reinvested in shares of one or more funds in the complex
designated by such Trustee (designated securities). The amount paid to the
Trustee under the Plan will be determined based upon the performance of
such investments. Deferral of Trustees' fees in accordance with the Plan
will have a negligible effect on a fund's assets, liabilities, and net
income per share, and will not obligate the fund to retain the services of
any Trustee or to pay any particular level of compensation to the Trustee.
Each fund may invest in such designated securities under the Plan without
shareholder approval.
Under a retirement program adopted in July 1988, the non-interested
Trustees, upon reaching age 72, become eligible to participate in a
retirement program under which they receive payments during their lifetime
from a fund based on their basic trustee fees and length of service. The
obligation of a fund to make such payments is not secured or funded.
Trustees become eligible if, at the time of retirement, they have served on
the Board for at least five years. Currently, Messrs. Ralph S. Saul,
William R. Spaulding, Bertram H. Witham, and David L. Yunich, all former
non-interested Trustees, receive retirement benefits under the program.
On December 31, 1995, the Trustees and officers of each fund owned, in the
aggregate, less than 1 % of each fund's total outstanding shares.
Also, as of that date, Charles Schwab & Co., Inc./Mutual Fund department,
San Francisco, CA, was known by New Markets Income and Global Bond to own
of record or beneficially approximately 7.26% and 5.61%, respectively, of
each fund's total outstanding shares.
MANAGEMENT CONTRACTS
Each fund employs FMR to furnish investment advisory and other services.
Under its management contract with each fund, FMR acts as investment
adviser and, subject to the supervision of the Board of Trustees, directs
the investments of each fund in accordance with its investment objective,
policies, and limitations. FMR also provides each fund with all necessary
office facilities and personnel for servicing each fund's investments,
compensates all officers of each fund and all Trustees who are "interested
persons" of the trust or of FMR, and all personnel of each fund or FMR
performing services relating to research, statistical, and investment
activities.
In addition, FMR or its affiliates, subject to the supervision of the Board
of Trustees, provide the management and administrative services necessary
for the operation of each fund. These services include providing facilities
for maintaining each fund's organization; supervising relations with
custodians, transfer and pricing agents, accountants, underwriters, and
other persons dealing with each fund; preparing all general shareholder
communications and conducting shareholder relations; maintaining each
fund's records and the registration of each fund's shares under federal and
state laws; developing management and shareholder services for each fund;
and furnishing reports, evaluations, and analyses on a variety of subjects
to the Trustees.
In addition to the management fee payable to FMR and the fees payable to
FSC, each fund pays all of its expenses, without limitation, that are not
assumed by those parties. Each fund pays for the typesetting, printing, and
mailing of its proxy materials to shareholders, legal expenses, and the
fees of the custodian, auditor and non-interested Trustees. Although each
fund's current management contract provides that each fund will pay for
typesetting, printing, and mailing prospectuses, statements of additional
information, notices, and reports to shareholders, the trust, on behalf of
each fund has entered into a revised transfer agent agreement with FSC,
pursuant to which FSC bears the costs of providing these services to
existing shareholders. Other expenses paid by each fund include interest,
taxes, brokerage commissions, and each fund's proportionate share of
insurance premiums and Investment Company Institute dues. Each fund is also
liable for such non-recurring expenses as may arise, including costs of any
litigation to which each fund may be a party, and any obligation it may
have to indemnify its officers and Trustees with respect to litigation.
FMR is Short-Term World Bond's and Global Bond's manager pursuant to
management contracts dated March 1, 1992, which were approved by
shareholders on February 19, 1992. FMR is also New Markets Income's manager
pursuant to a management contract dated April 15, 1993, which was approved
by FMR, then the sole shareholder, on April 29, 1993.
For the services of FMR under the contract, each fund pays FMR a monthly
management fee composed of the sum of two elements: a group fee rate and an
individual fund fee rate.
The group fee rate is based on the monthly average net assets of all of the
registered investment companies with which FMR has management contracts and
is calculated on a cumulative basis pursuant to the graduated fee rate
schedule shown on the left on the following page . The schedule on
the right on the following page shows the effective annual group fee
rate at various asset levels, which is the result of cumulatively applying
the annualized rates on the left. For example, the effective annual fee
rate at $ 367 billion of group net assets - the approximate level for
December 1995 - was .1482 %, which is the weighted average of the
respective fee rates for each level of group net assets up to $ 367
billion.
GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES

<TABLE>
<CAPTION>
<S> <C> <C> <C>
Average Group Annualized Group Net Effective Annual
Assets Rate Assets Fee Rate

0 - $3 billion .3700% $ 0.5 billion .3700%

3 - 6 .3400 25 .2664

6 - 9 .3100 50 .2188

9 - 12 .2800 75 .1986

12 - 15 .2500 100 .1869

15 - 18 .2200 125 .1793

18 - 21 .2000 150 .1736

21 - 24 .1900 175 .1695

24 - 30 .1800 200 .1658

30 - 36 .1750 225 .1629

36 - 42 .1700 250 .1604

42 - 48 .1650 275 .1583

48 - 66 .1600 300 .1565

66 - 84 .1550 325 .1548

84 - 120 .1500 350 .1533

120 - 174 .1450 400 .1507

174 - 228 .1400

228 - 282 .1375

282 - 336 .1350

Over 336 .1325

</TABLE>

Under each fund's current management contract with FMR, the group fee
rate is based on a schedule with breakpoints ending at .1400% for average
group assets in excess of $174 billion. For Short-Term World Bond and
Global Bond, prior to March 1, 1992, the group fee rate breakpoints shown
above for average group assets in excess of $120 billion and under $228
billion were voluntarily adopted by FMR, and went into effect on January 1,
1992. The additional breakpoints shown above for average group assets in
excess of $228 billion were voluntarily adopted by FMR on November 1, 1993.
On August 1, 1994, FMR voluntarily revised the prior extensions to the
group fee rate schedule, and added new breakpoints for average group assets
in excess of $156 billion and under $372 billion as shown in the schedule
on the following page. The revised group fee rate schedule was identical to
the above schedule for average group assets under $156 billion.
On January 1, 1996, FMR voluntarily added new breakpoints to the revised
schedule for average group assets in excess of $372 billion, pending
shareholder approval of a new management contract reflecting the revised
schedule and additional breakpoints. The revised group fee rate schedule
and its extensions provide for lower management fee rates as FMR's assets
under management increase. For average group assets in excess of $156
billion, the revised group fee rate schedule with additional breakpoints
voluntarily adopted by FMR is as follows:
GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES

<TABLE>
<CAPTION>
<S> <C> <C> <C>
Average Group Annualized Group Net Effective Annual
Assets Rate Assets Fee Rate

120 -$156 billion .1450% $ 150 billion .1736%

156 - 192 .1400 175 .1690

192 - 228 .1350 200 .1652

228 - 264 .1300 225 .1618

264 - 300 .1275 250 .1587

300 - 336 .1250 275 .1560

336 - 372 .1225 300 .1536

372 - 408 .1200 325 .1514

408 - 444 .1175 350 .1494

444 - 480 .1150 375 .1476

480 - 516 .1125 400 .1459

Over 516 .1100 425 .1443

450 .1427

475 .1413

500 .1399

525 .1385

550 .1372

</TABLE>

The individual fund fee rate is .45% for Short-Term World Bond , and
.55% for Global Bond and New Markets Income. Based on the average group net
assets of the funds advised by FMR for December 1995, the annual management
fee rates would be calculated as follows:

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Group Fee Rate Individual Fund Fee Rate Management Fee Rate

Short-Term World Bond .1482% + .45% = .5982%

Global Bond .1482% + .55% = .6982%

New Markets Income .1482% + .55% = .6982%

</TABLE>

One-twelfth of this annual management fee rate is applied to each fund's
net assets averaged for the most recent month, giving a dollar amount,
which is the fee for that month.
The table below shows the management fees paid to FMR by each fund for the
last three fiscal years:
SHORT-TERM WORLD BOND

Years Ended 12/31 Management Fees as a
Management Fees % of Average Net Assets

1995 $ 1,001,348 .60 %

1994 $ 2,008,467 .61%

1993 $ 2,464,314 .62%

GLOBAL BOND

Years Ended 12/31 Management Fees as a
Management Fees % of Average Net Assets

1995 $ 1,785,715 .70 %

1994 $ 3,938,370 .71%

1993 $ 3,097,304 .71%

NEW MARKETS INCOME

Years Ended 12/31 Management Fees as a
Management Fees % of Average Net Assets

1995 $ 1,149,541 .70 %

1994 $ 1,686,850 .71%

1993* $ 538,269 .71%+

* From commencement of operations, May 4, 1993.
+ Annualized
FMR may, from time to time, voluntarily reimburse all or a portion of each
fund's operating expenses (exclusive of interest, taxes, brokerage
commissions, and extraordinary expenses). FMR retains the ability to be
repaid for these expense reimbursements in the amount that expenses fall
below the limit prior to the end of the fiscal year. Expense reimbursements
by FMR will increase each fund's total returns and yield and repayment of
the reimbursement by each fund will lower its total returns and yield.
During the fiscal periods reported, FMR voluntarily agreed to reimburse
certain funds to the extent that the fund's aggregate operating expenses
were in excess of an annual rate of its average net assets. The table below
identifies the funds in reimbursement; the levels of and periods for such
reimbursement; the amount of management fees incurred under each contract
before reimbursement; and the dollar amount reimbursed by FMR, if any, for
each period.
NEW MARKETS INCOME

<TABLE>
<CAPTION>
<S> <C> <C>
From To Expense Limitations

May 4, 1993 -- 1.20%

Fiscal Period Ended Management Fees Before Amount of Expense Limitations
Reimbursement Reimbursement

December 31, 1995 $ 1,149,541 $ 0

Decem b er 31, 1994 1,686,850 529,663

Decem b er 31, 1993* 538,269 327,595

</TABLE>

* From commencement of operations May 4, 1993.
To comply with the California Code of Regulations, FMR will reimburse each
fund if and to the extent that each fund's aggregate annual operating
expenses exceed specified percentages of its average net assets. The
applicable percentages are 2 1/2% of the first $30 million, 2% of the next
$70 million, and 1 1/2% of average net assets in excess of $100 million.
When calculating each fund's expenses for purposes of this regulation, each
fund may exclude interest, taxes, brokerage commissions, and extraordinary
expenses, as well as a portion of its distribution plan expenses and
custodian fees attributable to investments in foreign securities.
SUB-ADVISERS. On behalf of Short-Term World Bond , Global Bond, and
New Markets Income, FMR has entered into sub-advisory agreements with FMR
U.K., FMR Far East, FIJ, and FIIA. FIIA, in turn, has entered into a
sub-advisory agreement with FIIAL U.K. Pursuant to the sub-advisory
agreements, FMR may receive investment advice and research services outside
the United States from the sub-advisers. FMR may also grant the
sub-advisers investment management authority as well as the authority to
buy and sell securities if FMR believes it would be beneficial to the
funds.
Currently, FMR U.K., FMR Far East, FIJ, FIIA, and FIIAL U.K. each focus on
issuers in countries other than the United States such as those in Europe,
Asia, and the Pacific Basin.
FMR U.K. and FMR Far East, which were organized in 1986, are wholly owned
subsidiaries of FMR. FIJ and FIIA are wholly owned subsidiaries of Fidelity
International Limited (FIL), a Bermuda company formed in 1968 which
primarily provides investment advisory services to non-U.S. investment
companies and institutional investors investing in securities throughout
the world. Edward C. Johnson 3d, Johnson family members, and various trusts
for the benefit of the Johnson family owns, directly or indirectly, more
than 25% of the voting common stock of FIL. FIJ was organized in Japan in
1986. FIIA was organized in Bermuda in 1983. FIIAL U.K. was organized in
the United Kingdom in 1984, and is a wholly owned subsidiary of Fidelity
International Management Holdings Limited, an indirect wholly owned
subsidiary of FIL.
Under the sub-advisory agreements FMR pays the fees of FMR U.K., FMR Far
East, FIJ, and FIIA. FIIA, in turn, pays the fees of FIIAL U.K. For
providing non-discretionary investment advice and research services the
sub-advisers are compensated as follows:
(small solid bullet) FMR pays FMR U.K. and FMR Far East fees equal to 110%
and 105%, respectively, of FMR U.K.'s and FMR Far East's costs incurred in
connection with providing investment advice and research services.
(small solid bullet) FMR pays FIIA and FIJ fees equal to 30% of FMR's
monthly management fee with respect to the average net assets held by the
fund for which the sub-adviser has provided FMR with investment advice and
research services.
(small solid bullet) FIIA pays FIIAL U.K. a fee equal to 110% of FIIAL
U.K.'s costs incurred in connection with providing investment advice and
research services.
For providing discretionary investment management and executing portfolio
transactions, the sub-advisers are compensated as follows:
(small solid bullet) FMR pays FMR U.K., FMR Far East, FIJ, and FIIA a fee
equal to 50% of its monthly management fee with respect to the fund's
average net assets managed by the sub-adviser on a discretionary basis.
(small solid bullet) FIIA pays FIIAL U.K. a fee equal to 110% of FIIAL
U.K.'s costs incurred in connection with providing discretionary investment
management services.
Currently, FIIAL U.K. exercises discretionary management authority over
Short-Term World Bond and Global Bond in its capacity as sub-adviser.
For the fiscal years ended 1995, 1994, and 1993, no fees were paid by FMR
to any of the sub-advisers on behalf of the funds.
DISTRIBUTION AND SERVICE PLANS
The Trustees have approved Distribution and Service Plans on behalf of
the funds (the Plans) pursuant to Rule 12b-1 under the Investment Company
Act of 1940 (the Rule). The Rule provides in substance that a mutual fund
may not engage directly or indirectly in financing any activity that is
primarily intended to result in the sale of shares of a fund except
pursuant to a plan approved on behalf of the fund under the Rule. The
Plans, as approved by the Trustees, allow the funds and FMR to incur
certain expenses that might be considered to constitute indirect payment by
the funds of distribution expenses.
Under each Plan, if the payment of management fees by the funds to FMR is
deemed to be indirect financing by the funds of the distribution of their
shares, such payment is authorized by the Plans. Each Plan also
specifically recognizes that FMR, either directly or through FDC, may use
its management fee revenue, past profits, or other resources, without
limitation, to pay promotional and administrative expenses in connection
with the offer and sale of shares of each fund. In addition, each Plan
provides that FMR may use its resources, including its management fee
revenues, to make payments to third parties that assist in selling shares
of each fund, or to third parties, including banks, that render shareholder
support services.
Payments made by FMR to third parties during the fiscal year ended December
31, 1995 amounted to $19,211 for Global Bond. No third party payments were
made in fiscal 1995 for Short-Term World Bond or New Markets Income or in
fiscal 1994 and 1993 for any of the funds.
Prior to approving each Plan, the Trustees carefully considered all
pertinent factors relating to the implementation of the Plan, and have
determined that there is a reasonable likelihood that the Plan will benefit
the fund and its shareholders. In particular, the Trustees noted that the
Plans do not authorize payments by a fund other than those made to FMR
under its management contract with the fund. To the extent that each Plan
gives FMR and FDC greater flexibility in connection with the distribution
of shares of each fund, additional sales of fund shares may result.
Furthermore, certain shareholder support services may be provided more
effectively under the Plans by local entities with whom shareholders have
other relationships.
The Plans for Short-Term World Bond and Global Bond were approved by
each fund's shareholders on February 19, 1992 and November 12, 1987,
respectively. The Plan for New Markets Income was approved by FMR as the
initial shareholder on April 29, 1993.
The Glass-Steagall Act generally prohibits federally and state chartered or
supervised banks from engaging in the business of underwriting, selling, or
distributing securities. Although the scope of this prohibition under the
Glass-Steagall Act has not been clearly defined by the courts or
appropriate regulatory agencies, FDC believes that the Glass-Steagall Act
should not preclude a bank from performing shareholder support services, or
servicing and recordkeeping functions. FDC intends to engage banks only to
perform such functions. However, changes in federal or state statutes and
regulations pertaining to the permissible activities of banks and their
affiliates or subsidiaries, as well as further judicial or administrative
decisions or interpretations, could prevent a bank from continuing to
perform all or a part of the contemplated services. If a bank were
prohibited from so acting, the Trustees would consider what actions, if
any, would be necessary to continue to provide efficient and effective
shareholder services. In such event, changes in the operation of the funds
might occur, including possible termination of any automatic investment or
redemption or other services then provided by the bank. It is not expected
that shareholders would suffer any adverse financial consequences as a
result of any of these occurrences. In addition, state securities laws on
this issue may differ from the interpretations of federal law expressed
herein, and banks and financial institutions may be required to register as
dealers pursuant to state law.
Each fund may execute portfolio transactions with, and purchase securities
issued by, depository institutions that receive payments under the Plans.
No preference for the instruments of such depository institutions will be
shown in the selection of investments.
CONTRACTS WITH FMR AFFILIATES
FSC is transfer, dividend disbursing, and shareholder servicing agent for
each fund. FSC receives annual account fees and asset-based fees for each
retail account and certain institutional accounts based on account size. In
addition, the fees for retail accounts are subject to increase based on
postal rate changes. With respect to certain institutional retirement
accounts, FSC receives asset-based fees only. With respect to certain other
institutional retirement accounts, FSC receives annual account fees and
asset-based fees based on fund type. In addition, these fees are subject
to increase based on postal rate changes. FSC also collects small
account fees from certain accounts with balances of less than $2,500.
FSC pays out-of-pocket expenses associated with providing transfer agent
services. In addition, FSC bears the expense of typesetting, printing, and
mailing prospectuses, statements of additional information, and all other
reports, notices, and statements to shareholders, with the exception of
proxy statements.
FSC also performs the calculations necessary to determine each fund's
net asset value per share and dividends, and maintains each fund's
accounting records. The annual fee rates for these pricing and bookkeeping
services are based on each fund's average net assets, specifically,
.0 75 % for the first $500 million of average net assets and
.03 75 % for average net assets in excess of $500 million. The fee is
limited to a minimum of $ 60 ,000 and a maximum of $ 80 0,000 per
year.
The table below shows the fees paid to FSC for pricing and bookkeeping
services, including related out-of-pocket expenses during each fund's last
three fiscal years:
Pricing and Bookkeeping Fees
1995 1994 1993

Short-Term World Bond $ 101,506 $ 198,213 $ 245,437

Global Bond $ 155,301 $ 312,138 $ 255,949

New Markets Income $ 98,972 $ 143,864 $ 52,922*

* From May 4, 1993 (commencement of operations).
For fiscal 1995, 1994, and 1993, there were no securities lending fees
incurred by the funds.
Each fund has a distribution agreement with FDC, a Massachusetts
corporation organized on July 18, 1960. FDC is a broker-dealer registered
under the Securities Exchange Act of 1934 and is a member of the National
Association of Securities Dealers, Inc. The distribution agreements call
for FDC to use all reasonable efforts, consistent with its other business,
to secure purchasers for shares of each fund, which are continuously
offered at net asset value. Promotional and administrative expenses in
connection with the offer and sale of shares are paid by FMR.
DESCRIPTION OF THE TRUST
TRUST ORGANIZATION. Short-Term World Bond , Global Bond, and New
Markets Income are funds of Fidelity Investment Trust, an open-end
management investment company organized as a Massachusetts business trust
on April 20, 1984. On October 18, 1984 the trust's name was changed from
Fidelity International Trust to Fidelity Overseas Fund. On November 1,
1986, the trust's name was changed from Fidelity Overseas Fund to Fidelity
Investment Trust to reflect the multiple funds within the trust. Currently,
there are twenty-two funds of the trust: Fidelity Overseas Fund,
Fidelity Europe Fund, Fidelity Europe Capital Appreciation Fund,
Fid elity Pacific Basin Fund, Fidelity International Growth & Income
Fund, Fidelity Global Bond Fund, Fidelity Canada Fund, Fidelity Worldwide
Fund, Fidelity Emerging Markets Fund, Fidelity Latin America Fund, Fidelity
Southeast Asia Fund, Fidelity Short-Term World Bond Fund, Fidelity
Diversified International Fund, Fidelity New Markets Income Fund, Fidelity
Japan Fund, Fidelity International Value Fund, Fidelity France Fund,
Fidelity Germany Fund, Fidelity Hong Kong and China Fund, Fidelity Japan
Small Companies Fund, Fidelity Nordic Fund, and Fidelity United Kingdom
Fund. The Declaration of Trust permits the Trustees to create additional
funds.
In the event that FMR ceases to be the investment adviser to a trust or a
fund, the right of the trust or fund to use the identifying name "Fidelity"
may be withdrawn. There is a remote possibility that one fund might become
liable for any misstatement in its prospectus or statement of additional
information about another fund.
The assets of the trust received for the issue or sale of shares of each of
its funds and all income, earnings, profits, and proceeds thereof, subject
only to the rights of creditors, are especially allocated to such fund, and
constitute the underlying assets of such fund. The underlying assets of
each fund are segregated on the books of account, and are to be charged
with the liabilities with respect to such fund and with a share of the
general liabilities of their respective trusts. Expenses with respect to
each trust are to be allocated in proportion to the asset value of their
respective funds, except where allocations of direct expense can otherwise
be fairly made. The officers of the trust, subject to the general
supervision of the Boards of Trustees, have the power to determine which
expenses are allocable to a given fund, or which are general or allocable
to all of the funds of a certain trust. In the event of the dissolution or
liquidation of the trust, shareholders of each fund of the trust are
entitled to receive as a class the underlying assets of such fund available
for distribution.
SHAREHOLDER AND TRUSTEE LIABILITY. The trust is an entity of the type
commonly known as "Massachusetts business trust." Under Massachusetts law,
shareholders of such a trust may, under certain circumstances, be held
personally liable for the obligations of the trust. The Declaration of
Trust provides that the trust shall not have any claim against shareholders
except for the payment of the purchase price of shares and requires that
each agreement, obligation, or instrument entered into or executed by the
trust or its Trustees shall include a provision limiting the obligations
created thereby to the trust and its assets. The Declaration of Trust
provides for indemnification out of each fund's property of any shareholder
held personally liable for the obligations of the fund. The Declaration of
Trust also provides that its funds shall, upon request, assume the defense
of any claim made against any shareholder for any act or obligation of the
fund and satisfy any judgment thereon. Thus, the risk of a shareholder
incurring financial loss on account of shareholder liability is limited to
circumstances in which the fund itself would be unable to meet its
obligations. FMR believes that, in view of the above, the risk of personal
liability to shareholders is remote.
The Declaration of Trust further provides that the Trustees, if they have
exercised reasonable care, will not be liable for any neglect or
wrongdoing, but nothing in the Declaration of Trust protect Trustees
against any liability to which they would otherwise be subject by reason of
willful misfeasance, bad faith, gross negligence, or reckless disregard of
the duties involved in the conduct of their office.
VOTING RIGHTS. Each fund's capital consists of shares of beneficial
interest. The shares have no preemptive or conversion rights; the voting
and dividend rights, the right of redemption, and the privilege of exchange
are described in the Prospectus. Shares are fully paid and nonassessable,
except as set forth under the heading "Shareholder and Trustee Liability"
above. Shareholders representing 10% or more of the trust or a fund may, as
set forth in the Declaration of Trust, call meetings of a trust or fund for
any purpose related to the trust or fund, as the case may be, including, in
the case of a meeting of an entire trust, the purpose of voting on removal
of one or more Trustees. The trust or fund may be terminated upon the sale
of its assets to another open-end management investment company, or upon
liquidation and distribution of its assets, if approved by vote of the
holders of a majority of the outstanding shares of the trust or the fund.
If not so terminated, each trust or fund will continue indefinitely.
CUSTODIAN. Brown Brothers Harriman & Co., 40 Water Street, Boston,
Massachusetts, is custodian of the assets of Short-Term World Bond .
The Chase Manhattan Bank, N.A., 1211 Avenue of the Americas, New York, New
York, is custodian of the assets of Global Bond and New Markets Income. The
custodian is responsible for the safekeeping of a fund's assets and the
appointment of the subcustodian banks and clearing agencies. The custodian
takes no part in determining the investment policies of a fund or in
deciding which securities are purchased or sold by a fund. However, a fund
may invest in obligations of the custodian and may purchase securities from
or sell securities to the custodian. The Bank of New York and Chemical
Bank, each headquartered in New York, also may serve as a special purpose
custodian of certain assets in connection with pooled repurchase agreement
transactions.
FMR, its officers and directors, its affiliated companies, and the Board of
Trustees may, from time to time, conduct transactions with various banks,
including banks serving as custodians for certain funds advised by FMR. The
Boston branch of Short-Term World Bond's custodian leases its office space
from an affiliate of FMR at a lease payment which, when entered into, was
consistent with prevailing market rates. Transactions that have occurred to
date include mortgages and personal and general business loans. In the
judgment of FMR, the terms and conditions of those transactions were not
influenced by existing or potential custodial or other fund relationships.
AUDITOR. Coopers & Lybrand L.L.P., One Post Office Square, Boston,
Massachusetts, serves as Short-Term World Bond' s and Global Bond's
independent accountant. Price Waterhouse LLP, 160 Federal Street, Boston,
Massachusetts serves as New Markets Income's independent accountant. The
auditors examine financial statements for the funds and provide other
audit, tax, and related services.
FINANCIAL STATEMENTS
Each fund's financial statements and financial highlights for the fiscal
year ended December 31, 1995 are included in the fund's Annual Report,
which is a separate report supplied with this Statement of Additional
Information. Each fund's financial statements and financial highlights are
incorporated herein by reference.
APPENDIX
DOLLAR-WEIGHTED AVERAGE MATURITY is derived by multiplying the value of
each investment by the number of days remaining to its maturity, adding
these calculations, and then dividing the total by the value of the fund's
portfolio. An obligation's maturity is typically determined on a stated
final maturity basis, although there are some exceptions to this rule.
For example, if it is probable that the issuer of an instrument will take
advantage of a maturity-shortening device, such as a call, refunding, or
redemption provision, the date on which the instrument will probably be
called, refunded, or redeemed may be considered to be its maturity date.
Also, the maturities of mortgage-backed securities and some asset-backed
securities, such as collateralized mortgage obligations, are determined on
a weighted average life basis, which is the average time for principal to
be repaid. For a mortgage security, this average time is calculated by
estimating the timing of principal payments, including unscheduled
prepayments, during the life of the mortgage. The weighted average life of
these securities is likely to be substantially shorter than their stated
final maturity.
The descriptions that follow are examples of eligible ratings for the
funds. A fund may, however, consider the ratings for other types of
investments and the ratings assigned by other rating organizations when
determining the eligibility of a particular investment.
DESCRIPTION OF MOODY'S CORPORATE BOND RATINGS:
AAA - Bonds which are rated Aaa are judged to be of the best
quality. They carry the smallest degree of investment risk and are
generally referred to as "gilt edge d ." Interest payments are
protected by a large or by an exceptionally stable margin and principal is
secure. While the various protective elements are likely to change, such
changes as can be visualized are most unlikely to impair the fundamentally
strong position of such issues.
AA - Bonds which are rated Aa are judged to be of high quality by
all standards. Together with the Aaa group they comprise what are generally
known as high-grade bonds. They are rated lower than the best bonds because
margins of protection may not be as large as in Aaa securities or
fluctuation of protective elements may be of greater amplitude or there may
be other elements present which make the long-term risks appear somewhat
larger than the Aaa securities.
A - Bonds which are rated A possess many favorable investment
attributes and are to be considered as upper-medium-grade obligations.
Factors giving security to principal and interest are considered adequate
but elements may be present which suggest a susceptibility to impairment
sometime in the future.
BAA - Bonds which are rated Baa are considered as medium-grade
obligations, ( i.e., they are neither highly protected nor poorly
secured ) . Interest payments and principal security appear adequate
for the present but certain protective elements may be lacking or may be
characteristically unreliable over any great length of time. Such bonds
lack outstanding investment characteristics and in fact have speculative
characteristics as well.
BA - Bonds which are rated Ba are judged to have speculative
elements; their future cannot be considered as well assured. Often the
protection of interest and principal payments may be very moderate and
thereby not well safeguarded during both good and bad times over the
future. Uncertainty of position characterizes bonds in this class.
B - Bonds which are rated B generally lack characteristics of the
desirable investment. Assurance of interest and principal payments or of
maintenance of other terms of the contract over any long period of time
may be small.
CAA - Bonds which are rated Caa are of poor standing. Such issues
may be in default or there may be present elements of danger with respect
to principal or interest.
CA - Bonds which are rated Ca represent obligations which are
speculative in a high degree. Such issues are often in default or have
other marked short-comings.
C - Bonds which are rated C are the lowest-rated class of bonds and
issue s so rated can be regarded as having extremely poor prospects
of ever attaining any real investment standing.
Moody's applies numerical modifiers, 1, 2, and 3, in each generic rating
classification from Aa through B in its corporate bond rating system. The
modifier 1 indicates that the security ranks in the higher end of its
generic rating category; the modifier 2 indicates a mid-range ranking; and
the modifier 3 indicates that the issue ranks in the lower end of its
generic rating category.
DESCRIPTION OF S&P'S CORPORATE BOND RATINGS:
AAA - Debt rated AAA has the highest rating assigned by Standard & Poor's
to a debt obligation. Capacity to pay interest and repay principal is
extremely strong.
AA - Debt rated AA has a very strong capacity to pay interest and repay
principal and differs from the higher-rated issues only in small degree.
A - Debt rated A has a strong capacity to pay interest and repay principal,
although it is somewhat more susceptible to the adverse effects of changes
in circumstances and economic conditions than debt in higher rated
categories.
BBB - Debt rated BBB is regarded as having an adequate capacity to pay
interest and repay principal. Whereas it normally exhibits adequate
protection parameters, adverse economic conditions or changing
circumstances are more likely to lead to a weakened capacity to pay
interest and repay principal for debt in this category than in higher-rated
categories.
BB - Debt rate BB has less near-term vulnerability to default than other
speculative issues. However, it faces major ongoing uncertainties or
exposure to adverse business, financial, or economic conditions which could
lead to inadequate capacity to meet timely interest and principal
payments. The BB rating category is also used for debt subordinated to
senior debt that is assigned an actual or implied BBB- rating.
B - Debt rated B has a greater vulnerability to default but currently has
the capacity to meet interest payments and principal repayments. Adverse
business, financial, or economic conditions will likely impair capacity or
willingness to pay interest and repay principal. The B rating category is
also used for debt subordinated to senior debt that is assigned an actual
or implied BB or BB- rating.
CCC - Debt rated CCC has a currently identifiable vulnerability to default,
and is dependent upon favorable business, financial, and economic
conditions to meet timely payment of interest and repayment of principal.
In the event of adverse business, financial, or economic conditions, it is
not likely to have the capacity to pay interest and repay principal. The
CCC rating category is also used for debt subordinated to senior debt that
is assigned an actual or implied B or B- rating.
CC - Debt rated CC is typically applied to debt subordinated to senior debt
which is assigned an actual or implied CCC debt rating.
C - The rating C is typically applied to debt subordinated to senior debt
which is assigned an actual or implied CCC- debt rating. The C rating may
be used to cover a situation where a bankruptcy petition has been filed but
debt service payments are continued.
CI - The rating CI is reserved for income bonds on which no interest is
being paid.
D - Debt rated D is in payment default. The D rating category is used when
interest payments or principal payments are not made on the date due even
if the applicable grace period has not expired, unless S&P believes that
such payments will be made during such grace period. The D rating will also
be used upon the filing of a bankruptcy petition if debt service payments
are jeopardized.
The ratings from AA to CCC may be modified by the addition of a plus or
minus sign to show relative standing within the major rating categories.
PART C. OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a)(1) Financial Statements for Fidelity Short-Term World Bond Fund
(formerly Fidelity Short-Term World Income Fund) for the fiscal year ended
December 31, 1995 are incorporated herein by reference to the fund's
Statement of Additional Information and were filed on February 20, 1996 for
Fidelity Investment Trust (File No. 2-90649) pursuant to Rule 30d-1 under
the Investment Company Act of 1940 and are incorporated herein by
reference.
(a)(2) Financial Statements for Fidelity Global Bond Fund for the fiscal
year ended December 31, 1995 are incorporated herein by reference to the
fund's Statement of Additional Information and were filed on February 20,
1996 for Fidelity Investment Trust (File No. 2-90649) pursuant to Rule
30d-1 under the Investment Company Act of 1940 and are incorporated herein
by reference.
(a)(3) Financial Statements for Fidelity New Markets Income Fund for the
fiscal year ended December 31, 1995 are incorporated herein by reference to
the fund's Statement of Additional Information and were filed on February
20, 1996 for Fidelity Investment Trust (File No. 2-90649) pursuant to Rule
30d-1 under the Investment Company Act of 1940 and are incorporated herein
by reference.
(b) Exhibits:
(1) Restated Declaration of Trust, dated February 16, 1995, is incorporated
herein by reference to Exhibit 1 to Post-Effective Amendment No. 58.
(2) By-Laws of the Trust are incorporated herein by reference to Exhibit 2
to Fidelity Union Street Trust Post-Effective Amendment No. 87 (File No.
2-50318).
(3) Not applicable.
(4) Not applicable.
(5)(a) Management Contract dated October 1, 1992 between Fidelity
Diversified International Fund and Fidelity Management & Research Company
is incorporated herein by reference to Exhibit 5(a) of Post-Effective
Amendment No. 58.
(b) Sub-Advisory Agreement dated October 1, 1992 between Fidelity
Management & Research Company and Fidelity Management & Research (Far East)
Inc. on behalf of Fidelity Diversified International Fund is incorporated
herein by reference to Exhibit 5(p) of Post-Effective Amendment No. 51.
(c) Sub-Advisory Agreement dated October 1, 1992 between Fidelity
Management & Research Company and Fidelity Management & Research (U.K.)
Inc. on behalf of Fidelity Diversified International Fund is incorporated
herein by reference to Exhibit 5(nn) of Post-Effective Amendment No. 51.
(d) Sub-Advisory Agreement dated October 1, 1992 between Fidelity
International Investment Advisors and Fidelity International Investment
Advisors (U.K.) Limited on behalf of Fidelity Diversified International
Fund is incorporated herein by reference to Exhibit 5(yyy) of
Post-Effective Amendment No. 51.
(e) Management Contract dated March 1, 1992 between Fidelity International
Growth & Income Fund and Fidelity Management & Research Company is
incorporated herein by reference to Exhibit 5(e) of Post-Effective
Amendment No. 57.
(f) Sub-Advisory Agreement dated April 1, 1992 between Fidelity Management
& Research Company and Fidelity Management & Research (Far East) Inc. on
behalf of Fidelity International Growth & Income Fund is incorporated
herein by reference to Exhibit 5(f) of Post-Effective Amendment No. 57.
(g) Sub-Advisory Agreement dated April 1, 1992 between Fidelity Management
& Research Company and Fidelity Management & Research (U.K.) Inc. on behalf
of Fidelity International Growth & Income Fund is incorporated herein by
reference to Exhibit 5(g) of Post-Effective Amendment No. 57.
(h) Sub-Advisory Agreement dated April 1, 1992 between Fidelity
International Investment Advisors and Fidelity International Investment
Advisors (U.K.) Limited on behalf of Fidelity International Growth & Income
Fund is incorporated herein by reference to Exhibit 5(h) of Post-Effective
Amendment No. 57.
(i) Sub-Advisory Agreement dated April 1, 1992 between Fidelity Management
& Research Company and Fidelity International Investment Advisors on behalf
of Fidelity International Growth & Income Fund is incorporated herein by
reference to Exhibit 5(i) of Post-Effective Amendment No. 57.
(j) Management Contract dated September 16, 1994 between Fidelity
International Value Fund and Fidelity Management & Research Company is
incorporated herein by reference to Exhibit 5(j) of Post-Effective
Amendment No. 57.
(k) Sub-Advisory Agreement dated September 16, 1994 between Fidelity
Management & Research Company and Fidelity Management & Research (Far East)
Inc. on behalf of Fidelity International Value Fund is incorporated herein
by reference to Exhibit 5(k) of Post-Effective Amendment No. 57.
(l) Sub-Advisory Agreement dated September 16, 1994 between Fidelity
Management & Research Company and Fidelity Management & Research (U.K.)
Inc. on behalf of Fidelity International Value Fund is incorporated herein
by reference to Exhibit 5(l) of Post-Effective Amendment No. 57.
(m) Sub-Advisory Agreement dated November 18, 1993 between Fidelity
International Investment Advisors and Fidelity International Investment
Advisors (U.K.) Limited on behalf of Fidelity International Value Fund is
incorporated herein by reference to Exhibit 5(m) to Post-Effective
Amendment No. 64.
(n) Sub-Advisory Agreement dated September 16, 1994 between Fidelity
Management & Research Company and Fidelity International Investment
Advisors on behalf of Fidelity International Value Fund is incorporated
herein by reference to Exhibit 5(n) of Post-Effective Amendment No. 57.
(o) Sub-Advisory Agreement dated September 16, 1994 between Fidelity
Management & Research Company and Fidelity Investments Japan Limited on
behalf of Fidelity International Value Fund is incorporated herein by
reference to Exhibit 5(o) of Post-Effective Amendment No. 57.
(p) Management Contract dated March 1, 1992 between Fidelity Overseas Fund
and Fidelity Management & Research Company is incorporated herein by
reference to Exhibit 5(p) of Post-Effective Amendment No. 57.
(q) Sub-Advisory Agreement dated April 1, 1992 between Fidelity Management
& Research Company and Fidelity Management & Research (Far East) Inc. on
behalf of Fidelity Overseas Fund is incorporated herein by reference to
Exhibit 5(q) to Post-Effective Amendment No. 57.
(r) Sub-Advisory Agreement dated April 1, 1992 between Fidelity Management
& Research Company and Fidelity Management & Research (U.K.) on behalf of
Fidelity Overseas Fund is incorporated herein by reference to Exhibit 5(r)
of Post-Effective Amendment No. 57.
(s) Sub-Advisory Agreement dated April 1, 1992 between Fidelity
International Investment Advisors and Fidelity International Investment
Advisors (U.K.) Limited on behalf of Fidelity Overseas Fund is incorporated
herein by reference to Exhibit 5(s) of Post-Effective Amendment No. 57.
(t) Sub-Advisory Agreement dated April 1, 1992 between Fidelity Management
& Research Company and Fidelity International Investment Advisors on behalf
of Fidelity Overseas Fund is incorporated herein by reference to Exhibit
5(t) of Post-Effective Amendment No. 57.
(u) Management Contract dated March 1, 1992 between Fidelity Worldwide
Fund and Fidelity Management & Research Company is incorporated herein by
reference to Exhibit 5(u) of Post-Effective Amendment No. 57.
(v) Sub-Advisory Agreement dated April 1, 1992 between Fidelity Management
& Research Company and Fidelity Management & Research (Far East) Inc. on
behalf of Fidelity Worldwide Fund is incorporated herein by reference to
Exhibit 5(v) of Post-Effective Amendment No. 57.
(w) Sub-Advisory Agreement dated April 1, 1992 between Fidelity Management
& Research Company and Fidelity Management & Research (U.K.) Inc. on behalf
of Fidelity Worldwide Fund is incorporated herein by reference to Exhibit
5(w) of Post-Effective Amendment No. 57.
(x) Sub-Advisory Agreement dated April 1, 1992 between Fidelity
International Investment Advisors and Fidelity International Investment
Advisors (U.K.) Limited on behalf of Fidelity Worldwide Fund is
incorporated herein by reference to Exhibit 5(x) of Post-Effective
Amendment No. 57.
(y) Sub-Advisory Agreement dated April 1, 1992 between Fidelity Management
& Research Company and Fidelity International Investment Advisors on behalf
of Fidelity Worldwide Fund is incorporated herein by reference to Exhibit
5(y) of Post-Effective Amendment No. 57.
(z) Management Contract dated March 1, 1992 between Fidelity Canada Fund
and Fidelity Management & Research Company is incorporated herein by
reference to Exhibit 5(z) of Post-Effective Amendment No. 57.
(aa) Sub-Advisory Agreement dated April 1, 1992 between Fidelity Management
& Research Company and Fidelity Management & Research (Far East) Inc. on
behalf of Fidelity Canada Fund is incorporated herein by reference to
Exhibit 5(aa) of Post-Effective Amendment No. 57.
(bb) Sub-Advisory Agreement dated April 1, 1992 between Fidelity Management
& Research Company and Fidelity Management & Research (U.K.) Inc. on behalf
of Fidelity Canada Fund is incorporated herein by reference to Exhibit
5(bb) of Post-Effective Amendment No. 57.
(cc) Sub-Advisory Agreement dated April 1, 1992 between Fidelity
International Investment Advisors and Fidelity International Investment
Advisors (U.K.) Limited on behalf of Fidelity Canada Fund is incorporated
herein by reference to Exhibit 5(cc) of Post-Effective Amendment No. 57.
(dd) Sub-Advisory Agreement dated April 1, 1992 between Fidelity Management
& Research Company and Fidelity International Investment Advisors on behalf
of Fidelity Canada Fund is incorporated herein by reference to Exhibit
5(dd) of Post-Effective Amendment No. 57.
(ee) Management Contract dated March 1, 1992 between Fidelity Europe Fund
and Fidelity Management & Research Company is incorporated herein by
reference to Exhibit 5(ee) of Post-Effective Amendment No. 57.
(ff) Sub-Advisory Agreement dated April 1, 1992 between Fidelity Management
& Research Company and Fidelity Management & Research (Far East) Inc. on
behalf of Fidelity Europe Fund is incorporated herein by reference to
Exhibit 5(ff) of Post-Effective Amendment No. 57.
(gg) Sub-Advisory Agreement dated April 1, 1992 between Fidelity Management
& Research Company and Fidelity Management & Research (U.K.) Inc. on behalf
of Fidelity Europe Fund is incorporated herein by reference to Exhibit
5(gg) of Post-Effective Amendment No. 57.
(hh) Sub-Advisory Agreement dated April 1, 1992 between Fidelity
International Investment Advisors and Fidelity International Investment
Advisors (U.K.) Limited on behalf of Fidelity Europe Fund is incorporated
herein by reference to Exhibit 5(hh) of Post-Effective Amendment No. 57.
(ii) Sub-Advisory Agreement dated April 1, 1992 between Fidelity Management
& Research Company and Fidelity International Investment Advisors on behalf
of Fidelity Europe Fund is incorporated herein by reference to Exhibit
5(ii) of Post-Effective Amendment No. 57.
(jj) Management Contract dated November 18, 1993 between Fidelity Europe
Capital Appreciation Fund and Fidelity Management & Research Company is
incorporated herein by reference to Exhibit 5(o) of Post-Effective
Amendment No. 51.
(kk) Sub-Advisory Agreement dated November 18, 1993 between Fidelity
Management & Research Company and Fidelity Management & Research (Far East)
Inc. on behalf of Fidelity Europe Capital Appreciation Fund is incorporated
herein by reference to Exhibit 5(dd) of Post- Effective Amendment No. 53.
(ll) Sub-Advisory Agreement dated November 18, 1993 between Fidelity
Management & Research Company and Fidelity Management & Research (U.K.)
Inc. on behalf of Fidelity Europe Capital Appreciation Fund is incorporated
herein by reference to Exhibit 5(ss) of Post- Effective Amendment No. 53.
(mm) Sub-Advisory Agreement dated November 18, 1993 between Fidelity
International Investment Advisors and Fidelity International Investment
Advisors (U.K.) Limited on behalf of Fidelity Europe Capital Appreciation
Fund is incorporated herein by reference to Exhibit 5(ggg) of
Post-Effective Amendment No. 55.
(nn) Sub-Advisory Agreement dated November 18, 1993 between Fidelity
Management & Research Company and Fidelity International Investment
Advisors on behalf of Fidelity Europe Capital Appreciation Fund is
incorporated herein by reference to Exhibit 5(uuu) of Post-Effective
Amendment No. 55.
(oo) Management Contract dated July 16, 1992 between Fidelity Japan Fund
and Fidelity Management & Research Company is incorporated herein by
reference to Exhibit 5(k) of Post-Effective Amendment No. 51.
(pp) Sub-Advisory Agreement dated July 16, 1992 between Fidelity Management
& Research Company and Fidelity Management & Research (Far East) Inc. on
behalf of Fidelity Japan Fund is incorporated herein by reference to
Exhibit 5(z) of Post-Effective Amendment No. 53.
(qq) Sub-Advisory Agreement dated July 16, 1992 between Fidelity Management
& Research Company and Fidelity Management & Research (U.K.) Inc. on behalf
of Fidelity Japan Fund is incorporated herein by reference to Exhibit 5(oo)
of Post Effective Amendment No. 53.
(rr) Sub-Advisory Agreement between Fidelity International Investment
Advisors and Fidelity International Investment Advisors (U.K.) Limited on
behalf of Fidelity Japan Fund dated is incorporated herein by reference to
Exhibit 5(ccc) to Post-Effective Amendment No. 55.
(ss) Sub-Advisory Agreement dated July 16, 1992 between Fidelity Management
& Research Company and Fidelity International Investment Advisors on behalf
of Fidelity Japan Fund is incorporated herein by reference to Exhibit
5(qqq) of Post-Effective Amendment No. 55.
(tt) Sub-Advisory Agreement dated April 12, 1994 between Fidelity
Management & Research Company and Fidelity Investments Japan Limited on
behalf of Fidelity Japan Fund is incorporated herein by reference to
Exhibit No. 5(ss)(i) of Post-Effective Amendment No. 57.
(uu) Management Contract dated March 1, 1992 between Fidelity Pacific
Basin Fund and Fidelity Management & Research Company is incorporated
herein by reference to Exhibit 5(tt) of Post-Effective Amendment No. 57.
(vv) Sub-Advisory Agreement dated April 1, 1992 between Fidelity Management
& Research Company and Fidelity Management & Research (Far East) Inc. on
behalf of Fidelity Pacific Basin Fund is incorporated herein by reference
to Exhibit 5(uu) of Post-Effective Amendment No. 57.
(ww) Sub-Advisory Agreement dated April 1, 1992 between Fidelity Management
& Research Company and Fidelity Management & Research (U.K.) Inc. on behalf
of Fidelity Pacific Basin Fund is incorporated herein by reference to
Exhibit 5(vv) of Post-Effective Amendment No. 57.
(xx) Sub-Advisory Agreement dated April 1, 1992 between Fidelity
International Investment Advisors and Fidelity International Investment
Advisors (U.K.) Limited on behalf of Fidelity Pacific Basin Fund is
incorporated herein by reference to Exhibit 5(ww) of Post-Effective
Amendment No. 57.
(yy) Sub-Advisory Agreement dated April 1, 1992 between Fidelity Management
& Research Company and Fidelity International Investment Advisors on behalf
of Fidelity Pacific Basin Fund is incorporated herein by reference to
Exhibit 5(xx) of Post-Effective Amendment No. 57.
(zz) Management Contract dated March 1, 1992 between Fidelity Emerging
Markets Fund and Fidelity Management & Research Company is incorporated
herein by reference to Exhibit 5(yy) of Post-Effective Amendment No. 57.
(aaa) Sub-Advisory Agreement dated April 1, 1992 between Fidelity
Management & Research Company and Fidelity Management & Research (Far East)
Inc. on behalf of Fidelity Emerging Markets Fund is incorporated herein by
reference to Exhibit 5(zz) of Post-Effective Amendment No. 57.
(bbb) Sub-Advisory Agreement dated April 1, 1992 between Fidelity
Management & Research Company and Fidelity Management & Research (U.K.)
Inc. on behalf of Fidelity Emerging Markets Fund is incorporated herein by
reference to Exhibit 5(aaa) of Post-Effective Amendment No. 57.
(ccc) Sub-Advisory Agreement dated April 1, 1992 between Fidelity
International Investment Advisors and Fidelity International Investment
Advisors (U.K.) Limited on behalf of Fidelity Emerging Markets Fund is
incorporated herein by reference to Exhibit 5(bbb) of Post-Effective
Amendment No. 57.
(ddd) Sub-Advisory Agreement dated April 1, 1992 between Fidelity
Management & Research Company and Fidelity International Investment
Advisors on behalf of Fidelity Emerging Markets Fund is incorporated herein
by reference to Exhibit 5(ccc) of Post-Effective Amendment No. 57.
(eee) Management Contract dated March 18, 1993 between Fidelity Latin
America Fund and Fidelity Management & Research Company is incorporated
herein by reference to Exhibit 5(l) of Post-Effective Amendment No. 48.
(fff) Sub-Advisory Agreement dated March 18, 1993 between Fidelity
Management & Research Company and Fidelity Management & Research (Far East)
Inc. on behalf of Fidelity Latin America Fund is incorporated herein by
reference to Exhibit 5(z) of Post-Effective Amendment No. 48.
(ggg) Sub-Advisory Agreement dated March 18, 1993 between Fidelity
Management & Research Company and Fidelity Management & Research (U.K.)
Inc. on behalf of Fidelity Latin America Fund is incorporated herein by
reference to Exhibit 5(nn) of Post-Effective Amendment No. 48.
(hhh) Sub-Advisory Agreement dated March 18, 1993 between Fidelity
International Investment Advisors and Fidelity International Investment
Advisors (U.K.) Limited on behalf of Fidelity Latin America Fund is
incorporated herein by reference to Exhibit 5(ddd) of Post-Effective
Amendment No. 55.
(iii) Sub-Advisory Agreement dated March 18, 1993 between Fidelity
Management & Research Company and Fidelity International Investment
Advisors on behalf of Fidelity Latin America Fund is incorporated herein
by reference as Exhibit 5(rrr) of Post-Effective Amendment No. 51.
(jjj) Management Contract dated March 18, 1993 between Fidelity Southeast
Asia Fund and Fidelity Management & Research Company is incorporated herein
by reference to Exhibit 5(m) of Post-Effective Amendment No. 48.
(kkk) Sub-Advisory Agreement dated March 18, 1993 between Fidelity
Management & Research Company and Fidelity Management & Research (Far East)
Inc. on behalf of Fidelity Southeast Asia Fund is incorporated herein by
reference to Exhibit 5(aa) of Post-Effective Amendment No. 48.
(lll) Sub-Advisory Agreement dated March 18, 1993 between Fidelity
Management & Research Company and Fidelity Management & Research (U.K.)
Inc. on behalf of Fidelity Southeast Asia Fund is incorporated herein by
reference to Exhibit 5(oo) of Post-Effective Amendment No. 48.
(mmm)Sub-Advisory Agreement dated March 18, 1993 between Fidelity
International Investment Advisors and Fidelity International Investment
Advisors (U.K.) Limited on behalf of Fidelity Southeast Asia Fund is
incorporated herein by reference to Exhibit 5(eee) of Post-Effective
Amendment No. 55.
(nnn) Sub-Advisory Agreement dated March 18, 1993 between Fidelity
Management & Research Company and Fidelity International Investment
Advisors on behalf of Fidelity Southeast Asia Fund is incorporated
herein by reference to Exhibit 5(sss) of Post-Effective Amend- ment No.
51.
(ooo) Sub-Advisory Agreement dated March 18, 1993 between Fidelity
Management & Research Company and Fidelity International Investment
Advisors on behalf of Fidelity Southeast Asia Fund is incorporated
herein by reference to Exhibit 5(nnn) of Post-Effective Amend- ment No.
57.
(ppp) Management Contract dated March 1, 1992 between Fidelity Global Bond
Fund and Fidelity Management & Research Company is incorporated herein by
reference to Exhibit 5(ooo) of Post-Effective Amendment No. 58.
(qqq) Sub-Advisory Agreement dated April 1, 1992 between Fidelity
Management & Research Company and Fidelity Management & Research (Far East)
Inc. on behalf of Fidelity Global Bond Fund is incorporated herein by
reference to Exhibit 5(ppp) of Post-Effective Amendment No. 58.
(rrr) Sub-Advisory Agreement dated April 1, 1992 between Fidelity
Management & Research Company and Fidelity Management & Research (U.K.)
Inc. on behalf of Fidelity Global Bond Fund is incorporated herein by
reference to Exhibit 5(qqq) of Post-Effective Amendment No. 58.
(sss) Sub-Advisory Agreement dated April 1, 1992 between Fidelity
International Investment Advisors and Fidelity International Investment
Advisors (U.K.) Limited on behalf of Fidelity Global Bond Fund is
incorporated herein by reference to Exhibit 5(rrr) of Post-Effective
Amendment No. 58.
(ttt) Sub-Advisory Agreement dated April 1, 1992 between Fidelity
Management & Research Company and Fidelity International Investment
Advisors on behalf of Fidelity Global Bond Fund is incorporated herein by
reference to Exhibit 5(sss) of Post-Effective Amendment No. 58.
(uuu) Management Contract dated March 1, 1992 between Fidelity Short-Term
World Income Fund (currently Fidelity Short-Term World Bond Fund) and
Fidelity Management & Research Company is incorporated herein by reference
to Exhibit 5(ttt) of Post-Effective Amendment No. 58.
(vvv) Sub-Advisory Agreement dated April 1, 1992 between Fidelity
Management & Research Company and Fidelity Management & Research (Far East)
Inc. on behalf of Fidelity Short-Term World Income Fund (currently Fidelity
Short-Term World Bond Fund) is incorporated herein by reference to Exhibit
5(uuu) of Post-Effective Amendment No. 58.
(www) Sub-Advisory Agreement dated April 1, 1992 between Fidelity
Management & Research Company and Fidelity Management & Research (U.K.) on
behalf of Fidelity Short-Term World Income Fund (currently Fidelity
Short-Term World Bond Fund) is incorporated herein by reference to Exhibit
5(vvv) of Post-Effective Amendment No. 58.
(xxx) Sub-Advisory Agreement dated April 1, 1992 between Fidelity
International Investment Advisors and Fidelity International Investment
Advisors (U.K.) Limited on behalf of Fidelity Short-Term World Income Fund
(currently Fidelity Short-Term World Bond Fund) is incorporated herein by
reference to Exhibit 5(www) of Post-Effective Amendment No. 58.
(yyy) Sub-Advisory Agreement dated April 1, 1992 between Fidelity
Management & Research Company and Fidelity International Investment
Advisors on behalf of Fidelity Short-World Income Fund (currently Fidelity
Short-Term World Bond Fund) is incorporated herein by reference to Exhibit
5(xxx) of Post-Effective Amendment No. 58.
(zzz) Management Contract dated April 15, 1993 between Fidelity New Markets
Income Fund and Fidelity Management & Research Company is incorporated
herein by reference to Exhibit 5(n) of Post-Effective Amendment No. 48.
(aaaa) Sub-Advisory Agreement dated April 15, 1993 between Fidelity
Management & Research Company and Fidelity Management & Research (Far East)
Inc. on behalf of Fidelity New Markets Income Fund is incorporated herein
by reference to Exhibit 5(bb) of Post-Effective Amendment No. 48.
(bbbb) Sub-Advisory Agreement dated April 15, 1993 between Fidelity
Management & Research Company and Fidelity Management & Research (U.K.)
Inc. on behalf of Fidelity New Markets Income Fund is incorporated herein
by reference to Exhibit 5(pp) of Post-Effective Amendment No. 48.
(cccc) Sub-Advisory Agreement dated April 15, 1993 between Fidelity
International Investment Advisors and Fidelity International Investment
Advisors (U.K.) Limited on behalf of Fidelity New Markets Income Fund is
incorporated herein by reference to Exhibit 5(fff) of Post-Effective
Amendment No. 50.
(dddd) Sub-Advisory Agreement dated April 15, 1993 between Fidelity
Management & Research Company and Fidelity International Investment
Advisors on behalf of Fidelity New Markets Income Fund is incorporated
herein by reference to Exhibit 5(ttt) of Post-Effective Amendment No. 50.
(eeee) Sub-Advisory Agreement dated April 15, 1993 between Fidelity
Management & Research Company and Fidelity Investments Japan Limited on
behalf of Fidelity New Markets Income Fund is incorporated herein by
reference to Exhibit 5(dddd) of Post-Effective Amendment No. 58.
(ffff) Form of Management Contract between Fidelity France Fund and
Fidelity Management & Research Company is incorporated herein by reference
to Exhibit 5(ffff) of Post-Effective Amendment No. 62.
(gggg)Sub-Advisory Agreement dated September 14, 1995 between Fidelity
Management & Research Company and Fidelity Management & Research (Far East)
Inc. on behalf of Fidelity France Fund is incorporated herein by reference
to Exhibit 5(gggg) of Post-Effective Amendment No. 62.
(hhhh) Sub-Advisory Agreement dated September 14, 1995 between
Fidelity Management & Research Company and Fidelity Management & Research
(U.K.) Inc. on behalf of Fidelity France Fund is incorporated herein by
reference to Exhibit 5(hhhh) of Post-Effective Amendment No. 62.
(iiii) Sub-Advisory Agreement dated September 14, 1995 between
Fidelity International Investment Advisors and Fidelity International
Investment Advisors (U.K.) Limited on behalf of Fidelity France Fund is
incorporated herein by reference to Exhibit 5(iiii) of Post-Effective
Amendment No. 62.
(jjjj) Sub-Advisory Agreement dated September 14, 1995 between Fidelity
Management & Research Company and Fidelity International Investment
Advisors on behalf of Fidelity France Fund is incorporated herein by
reference to Exhibit 5(jjjj) of Post-Effective Amendment No. 62.
(kkkk) Form of Management Contract between Fidelity Germany Fund and
Fidelity Management & Research Company is incorporated herein by reference
to Exhibit 5(kkkk) of Post-Effective Amendment No. 62.
(llll) Sub-Advisory Agreement dated September 14, 1995 between Fidelity
Management & Research Company and Fidelity Management & Research (Far East)
Inc. on behalf of Fidelity Germany Fund is incorporated herein by reference
to Exhibit 5(llll) of Post-Effective Amendment No. 62.
(mmmm) Sub-Advisory Agreement dated September 14, 1995 between Fidelity
Management & Research Company and Fidelity Management & Research (U.K.)
Inc. on behalf of Fidelity Germany Fund is incorporated herein by
reference to Exhibit 5(mmmm) of Post-Effective Amendment No. 62.
(nnnn) Sub-Advisory Agreement dated September 14, 1995 between
Fidelity International Investment Advisors and Fidelity International
Investment Advisors (U.K.) Limited on behalf of Fidelity Germany Fund is
incorporated herein by reference to Exhibit 5(nnnn) of Post-Effective
Amendment No. 62.
(oooo) Sub-Advisory Agreement dated September 14, 1995 between
Fidelity Management & Research Company and Fidelity International
Investment Advisors on behalf of Fidelity Germany Fund is incorporated
herein by reference to Exhibit 5(ffff) of Post-Effective Amendment No. 62.
(pppp)Form of Management Contract between Fidelity United Kingdom Fund
and Fidelity Management & Research Company is incorporated herein by
reference to Exhibit 5(pppp) of Post-Effective Amendment No. 62.
(qqqq)Sub-Advisory Agreement dated September 14, 1995 between Fidelity
Management & Research Company and Fidelity Management & Research (Far East)
Inc. on behalf of Fidelity United Kingdom Fund is incorporated herein by
reference to Exhibit 5(qqqq) of Post-Effective Amendment No. 62.
(rrrr) Sub-Advisory Agreement dated September 14, 1995 between
Fidelity Management & Research Company and Fidelity Management & Research
(U.K.) Inc. on behalf of Fidelity United Kingdom Fund is incorporated
herein by reference to Exhibit 5(rrrr) of Post-Effective Amendment No. 62.
(ssss) Sub-Advisory Agreement dated September 14, 1995 between Fidelity
International Investment Advisors and Fidelity International Investment
Advisors (U.K.) Limited on behalf of Fidelity United Kingdom Fund is
incorporated herein by reference to Exhibit 5(ssss) of Post-Effective
Amendment No. 62.
(tttt) Sub-Advisory Agreement dated September 14, 1995 between Fidelity
Management & Research Company and Fidelity International Investment
Advisors on behalf of Fidelity United Kingdom Fund is incorporated herein
by reference to Exhibit 5(ffff) of Post-Effective Amendment No. 62.
(uuuu) Form of Management Contract between Fidelity Japan Small
Companies Fund and Fidelity Management & Research Company is incorporated
herein by reference to Exhibit 5(uuuu) of Post-Effective Amendment No. 60.
(vvvv) Sub-Advisory Agreement dated September 14, 1995 between Fidelity
Management & Research Company and Fidelity Management & Research (Far East)
Inc. on behalf of Fidelity Japan Small Companies Fund is incorporated
herein by reference to Exhibit 5(vvvv) of Post-Effective Amendment No. 62.
(wwww) Sub-Advisory Agreement dated September 14, 1995 between Fidelity
Management & Research Company and Fidelity Management & Research (U.K.)
Inc. on behalf of Fidelity Japan Small Companies Fund is incorporated
herein by reference to Exhibit 5(wwww) of Post-Effective Amendment No. 62.
(xxxx) Sub-Advisory Agreement dated September 14, 1995 between Fidelity
International Investment Advisors and Fidelity International Investment
Advisors (U.K.) Limited on behalf of Fidelity Japan Small Companies Fund is
incorporated herein by reference to Exhibit 5(xxxx) of Post-Effective
Amendment No. 62.
(yyyy) Sub-Advisory Agreement dated September 14, 1995 between
Fidelity Management & Research Company and Fidelity International
Investment Advisors on behalf of Fidelity Japan Small Companies Fund is
incorporated herein by reference to Exhibit 5(yyyy) of Post-Effective
Amendment No. 62.
(zzzz) Form of Sub-Advisory Agreement between Fidelity Management &
Research Company and Fidelity Investments Japan Limited on behalf of
Fidelity Japan Small Companies Fund is incorporated by reference to Exhibit
5(zzzz) of Post-Effective Amendment No. 60.
(aaaaa) Form of Management Contract between Fidelity Hong Kong and
China Fund and Fidelity Management & Research Company is incorporated
herein by reference to Exhibit 5(aaaaa) of Post-Effective Amendment No. 60.
(bbbbb) Sub-Advisory Agreement dated September 14, 1995 between Fidelity
Management & Research Company and Fidelity Management & Research (Far East)
Inc. on behalf of Fidelity Hong Kong and China Fund is incorporated herein
by reference to Exhibit 5(bbbbb) of Post-Effective Amendment No. 62.
(ccccc) Sub-Advisory Agreement dated September 14, 1995 between
Fidelity Management & Research Company and Fidelity Management & Research
(U.K.) Inc. on behalf of Fidelity Hong Kong and China Fund is incorporated
herein by reference to Exhibit 5(ccccc) of Post-Effective Amendment No. 62.
(ddddd) Sub-Advisory Agreement dated September 14, 1995 between Fidelity
International Investment Advisors and Fidelity International Investment
Advisors (U.K.) Limited on behalf of Fidelity Hong Kong and China Fund is
incorporated herein by reference to Exhibit 5(ddddd) of Post-Effective
Amendment No. 62.
(eeeee) Sub-Advisory Agreement dated September 14, 1995 between
Fidelity Management & Research Company and Fidelity International
Investment Advisors on behalf of Fidelity Hong Kong and China Fund is
incorporated herein by reference to Exhibit 5(eeeee) of Post-Effective
Amendment No. 62.
(fffff) Form of Sub-Advisory Agreement between Fidelity Management &
Research Company and Fidelity Investments Japan Limited on behalf of
Fidelity Hong Kong and China Fund is incorporated herein by reference to
Exhibit 5(fffff) of Post-Effective Amendment No. 60.
(ggggg) Form of Management Contract between Fidelity Nordic Fund and
Fidelity Management & Research Company is incorporated herein by reference
to Exhibit 5(ggggg) of Post-Effective Amendment No. 62.
(hhhhh) Sub-Advisory Agreement dated September 14, 1995 between Fidelity
Management & Research Company and Fidelity Management & Research (Far East)
Inc. on behalf of Fidelity Nordic Fund is incorporated herein by reference
to Exhibit 5(hhhhh) of Post-Effective Amendment No. 62.
(iiiii) Sub-Advisory Agreement dated September 14, 1995 between
Fidelity Management & Research Company and Fidelity Management & Research
(U.K.) Inc. on behalf of Fidelity Nordic Fund is incorporated herein by
reference to Exhibit 5(iiiii) of Post-Effective Amendment No. 62.
(jjjjj) Sub-Advisory Agreement dated September 14, 1995 between
Fidelity International Investment Advisors and Fidelity International
Investment Advisors (U.K.) Limited on behalf of Fidelity Nordic Fund is
incorporated herein by reference to Exhibit 5(jjjjj) of Post-Effective
Amendment No. 62.
(kkkkk) Sub-Advisory Agreement dated September 14, 1995 between
Fidelity Management & Research Company and Fidelity International
Investment Advisors on behalf of Fidelity Nordic Fund is incorporated
herein by reference to Exhibit 5(kkkkk) of Post-Effective Amendment No. 62.
(6) (a) General Distribution Agreement dated April 1, 1987 between Fidelity
Overseas Fund, Fidelity Europe Fund, Fidelity Pacific Basin Fund, Fidelity
International Growth & Income Fund, Fidelity Canada Fund, dated May 19,
1990, between Fidelity Worldwide Fund, dated September 30, 1990, between
Fidelity Emerging Markets Fund (formerly "Fidelity International
Opportunities Fund", dated December 12, and between Fidelity Diversified
International Fund and Fidelity Distributors Corporation are incorporated
herein by reference to Exhibit Nos. 6(a)(1-8) of Post-Effective Amendment
No. 57.
(b) General Distribution Agreement dated April 1, 1987 between Fidelity
Global Bond Fund and Fidelity Distributors Corporation is incorporated
herein by reference to Exhibit 6(b) of Post-Effective Amendment No. 58.
(c) Amendment, dated January 1, 1988, to General Distribution Agreement
between Fidelity Global Bond Fund and Fidelity Distributors Corporation,
dated April 1, 1987, is incorporated herein by reference to Exhibit 6(c) of
Post-Effective Amendment No. 58.
(d) General Distribution Agreement dated September 20, 1991 between
Fidelity Short-Term World Income Fund (currently Fidelity Short-Term World
Bond Fund) and Fidelity Distributors Corporation is incorporated herein by
reference to Exhibit 6(d) of Post-Effective Amendment No. 58.
(e) Amendment, dated May 10, 1994, to General Distribution Agreement
between Fidelity Short-Term World Income Fund (currently Fidelity
Short-Term World Bond Fund) and Fidelity Distributors Corporation, dated
September 20, 1991, is incorporated herein by reference to Exhibit 6(e) of
Post-Effective Amendment No. 58.
(f) General Distribution Agreement dated December 12, 1991 between Fidelity
Diversified International Fund and Fidelity Distributors Corporation is
incorporated herein by reference to Exhibit 6(k) of Post-Effective
Amendment No. 38.
(g) General Distribution Agreement dated July 16, 1992 between Fidelity
Japan Fund and Fidelity Distributors Corporation is incorporated herein by
reference to Exhibit 6(l) of Post-Effective Amendment No. 55.
(h) General Distribution Agreement dated March 18, 1993 between Fidelity
Latin America Fund and Fidelity Distributors Corporation is incorporated
herein by reference to Exhibit 6(m) of Post-Effective Amendment No. 55.
(i) General Distribution Agreement dated March 18, 1993 between Fidelity
Southeast Asia Fund and Fidelity Distributors Corporation is incorporated
herein by reference to Exhibit 6(n) of Post-Effective Amendment No. 55.
(j) General Distribution Agreement, dated April 15, 1993 between Fidelity
New Markets Income Fund and Fidelity Distributors Corporation is
incorporated herein by reference to Exhibit 6(o) of Post-Effective
Amendment No. 50.
(k) General Distribution Agreement dated November 18, 1993 between Fidelity
Europe Capital Appreciation Fund and Fidelity Distributors Corporation is
incorporated herein by reference to Exhibit 6(p) of Post-Effective
Amendment No. 55.
(l) General Distribution Agreement dated September 16, 1994 between
Fidelity International Value Fund and Fidelity Distributors Corporation is
incorporated herein by reference to Exhibit 6(j) of Post-Effective
Amendment No. 58.
(m) Form of General Distribution Agreement between Fidelity France Fund and
Fidelity Distributors Corporation is incorporated herein by reference to
Exhibit 6(m) of Post-Effective Amendment No. 60.
(n) Form of General Distribution Agreement between Fidelity Germany Fund
and Fidelity Distributors Corporation is incorporated by reference to
Exhibit 6(n) of Post-Effective Amendment No. 60.
(o) Form of General Distribution Agreement between Fidelity United Kingdom
Fund and Fidelity Distributors Corporation is incorporated herein by
reference to Exhibit 6(o) of Post-Effective Amendment No. 60.
(p) Form of General Distribution Agreement between Fidelity Japan Small
Companies Fund and Fidelity Distributors Corporation is incorporated herein
by reference to Exhibit 6(p) of Post-Effective Amendment No. 60.
(q) Form of General Distribution Agreement between Fidelity Hong Kong and
China Fund and Fidelity Distributors Corporation is incorporated herein by
reference to Exhibit 6(q) of Post-Effective Amendment No. 60.
(r) Form of General Distribution Agreement between Fidelity Nordic Fund and
Fidelity Distributors Corporation is incorporated herein by reference to
Exhibit 6(r) of Post-Effective Amendment No. 60.
(7) (a) Retirement Plan for Non-Interested Person Trustees, Directors or
General Partners, is incorporated herein by reference to Exhibit 7 of
Fidelity Union Street Trust's (File No. 2-50318) Post-Effective Amendment
No. 87.
(b) The Fee Deferrral Plan for Non-Interested Person Directors and
Trustees of the Fidelity Funds, effective as of December 1, 1995, is
incorporated herein by reference to Exhibit 7(b) of Fidelity School Street
Trust's (File No. 2-57167) Post-Effective Amendment No. 47.
(8)(a) Custodian Agreement, Appendix A, and Appendix C, dated August 1,
1994, between The Chase Manhattan Bank, N.A. and Fidelity Investment Trust
on behalf of Fidelity Diversified Global Fund, Fidelity Diversified
International Fund, Fidelity Emerging Markets Fund, Fidelity Europe Capital
Appreciation Fund, Fidelity Europe Fund, Fidelity Global Bond Fund,
Fidelity International Growth & Income Fund, Fidelity International Value
Fund, Fidelity Japan Fund, Fidelity New Markets Income Fund, Fidelity
Overseas Fund, Fidelity Pacific Basin Fund, Fidelity Southeast Asia Fund,
and Fidelity Worldwide Fund is incorporated herein by reference to Exhibit
8(a) of Post-Effective Amendment No. 59.
(8)(b) Appendix B, dated September 14, 1995, to the Custodian Agreement,
dated August 1, 1994, between The Chase Manhattan Bank, N.A. and Fidelity
Investment Trust on behalf of Fidelity Diversified Global Fund, Fidelity
Diversified International Fund, Fidelity Emerging Markets Fund, Fidelity
Europe Capital Appreciation Fund, Fidelity Europe Fund, Fidelity Global
Bond Fund, Fidelity International Growth & Income Fund, Fidelity
International Value Fund, Fidelity Japan Fund, Fidelity New Markets Income
Fund, Fidelity Overseas Fund, Fidelity Pacific Basin Fund, Fidelity
Southeast Asia Fund, and Fidelity Worldwide Fund is incorporated herein by
reference to Exhibit 8(b) of Fidelity Charles Street Trust's Post-Effective
Amendment No. 54 (File No. 2-73133).
(8)(c) Custodian Agreement and Appendix C, dated September 1, 1994, between
Brown Brothers Harriman & Company and Fidelity Investment Trust on behalf
of Fidelity France Fund, Fidelity Germany Fund, Fidelity Japan Small
Companies Fund, Fidelity United Kingdom Fund, Fidelity Hong Kong and China
Fund, Fidelity Nordic Fund, Fidelity Canada Fund, Fidelity Latin America
Fund, and Fidelity Short-Term World Income Fund (currently Fidelity
Short-Term World Bond Fund) is incorporated herein by reference to Exhibit
8(a) of Fidelity Commonwealth Trust's Post-Effective Amendment No. 56 (File
No. 2-52322).
(8)(d) Appendix A, dated January 18, 1996, to the Custodian Agreement,
dated September 1, 1994, between Brown Brothers Harriman & Company and
Fidelity Investment Trust on behalf of Fidelity Canada Fund, Fidelity Latin
America Fund, Fidelity Nordic Fund, Fidelity United Kingdom Fund, Fidelity
France Fund, Fidelity Germany Fund, Fidelity Hong Kong & China Fund,
Fidelity Japan Small Companies Fund, and Fidelity Short-Term World Income
Fund (currently Fidelity Short-Term World Bond Fund) is filed herein as
Exhibit 8(d).
(8)(e) Appendix B, dated September 14, 1995, to the Custodian Agreement,
dated September 1, 1994, between Brown Brothers Harriman & Company and
Fidelity Investment Trust on behalf of Fidelity France Fund, Fidelity
Germany Fund, Fidelity Japan Small Companies Fund, Fidelity United Kingdom
Fund, Fidelity Hong Kong and China Fund, Fidelity Nordic Fund, Fidelity
Canada Fund, Fidelity Latin America Fund, and Fidelity Short-Term World
Income Fund (currently Fidelity Short-Term World Bond Fund) is incorporated
herein by reference to Exhibit 8(b) of Fidelity Capital Trust's
Post-Effective Amendment No. 63 (File No. 2-61760).
(9) Not applicable.
(10) Not applicable.
(11) (a) Consent of Coopers & Lybrand L.L.P. is filed herein as Exhibit
11(a).
(b) Consent of Price Waterhouse LLP is filed herein as Exhibit 11(b).
(12) Not applicable.
(13) Not applicable.
(14) (a) Fidelity Individual Retirement Account Custodial Agreement and
Disclosure Statement, as currently in effect, is incorporated herein by
reference to Exhibit 14(a) of Fidelity Union Street Trust's (File No.
2-50318) Post-Effective Amendment No. 87.
(b) Fidelity Institutional Individual Retirement Account Custodial
Agreement and Disclosure Statement, as currently in effect, is incorporated
herein by reference to Exhibit 14(d) of Fidelity Union Street Trust's (File
No. 2-50318) Post-Effective Amendment No. 87.
(c) National Financial Services Corporation Individual Retirement Account
Custodial Agreement and Disclosure Statement, as currently in effect, is
incorporated herein by reference to Exhibit 14(h) of Fidelity Union Street
Trust's (File No. 2-50318) Post-Effective Amendment No. 87.
(d) Fidelity Portfolio Advisory Services Individual Retirement Account
Custodial Agreement and Disclosure Statement, as currently in effect, is
incorporated herein by reference to Exhibit 14(i) of Fidelity Union Street
Trust's (File No. 2-50318) Post-Effective Amendment No. 87.
(e) Fidelity 403(b)(7) Custodial Account Agreement, as currently in
effect, is incorporated herein by reference to Exhibit 14(e) of Fidelity
Union Street Trust's (File No. 2-50318) Post-Effective Amendment No. 87.
(f) National Financial Services Corporation Defined Contribution
Retirement Plan and Trust Agreement, as currently in effect, is
incorporated herein by reference to Exhibit 14(k) of Fidelity Union Street
Trust's (File No. 2-50318) Post-Effective Amendment No. 87.
(g) The CORPORATEplan for Retirement Profit Sharing/401K Plan, as
currently in effect, is incorporated herein by reference to Exhibit 14(l)
of Fidelity Union Street Trust's (File No. 2-50318) Post-Effective
Amendment No. 87.
(h) The CORPORATEplan for Retirement Money Purchase Pension Plan, as
currently in effect, is incorporated herein by reference to Exhibit 14(m)
of Fidelity Union Street Trust's (File No. 2-50318) Post-Effective
Amendment No. 87.
(i) Fidelity Investments Section 403(b)(7) Individual Custodial Account
Agreement and Disclosure Statement, as currently in effect, is incorporated
herein by reference to Exhibit 14(f) of Fidelity Commonwealth Trust's (File
No. 2-52322) Post Effective Amendment No. 57.
(j) Plymouth Investments Defined Contribution Retirement Plan and Trust
Agreement, as currently in effect, is incorporated herein by reference to
Exhibit 14(o) of Fidelity Commonwealth Trust's (File No. 2-52322) Post
Effective Amendment No. 57.
(k) The Fidelity Prototype Defined Benefit Pension Plan and Trust Basic
Plan Document and Adoption Agreement, as currently in effect, is
incorporated herein by reference to Exhibit 14(d) of Fidelity Securities
Fund's (File No. 2-93601) Post Effective Amendment No. 33.
(l) The Institutional Prototype Plan Basic Plan Document, Standardized
Adoption Agreement, and Non-Standardized Adoption Agreement, as currently
in effect, is incorporated herein by reference to Exhibit 14(o) of Fidelity
Securities Fund's (File No. 2-93601) Post Effective Amendment No. 33.
(m) The CORPORATEplan for Retirement 100SM Profit Sharing/401(k) Basic
Plan Document, Standardized Adoption Agreement, and Non-Standardized
Adoption Agreement, as currently in effect, is incorporated herein by
reference to Exhibit 14(f) of Fidelity Securities Fund's (File No. 2-93601)
Post Effective Amendment No. 33.
(n) The Fidelity Investments 401(a) Prototype Plan for Tax-Exempt
Employers Basic Plan Document, Standardized Profit Sharing Plan Adoption
Agreement, Non-Standardized Discretionary Contribution Plan No. 002
Adoption Agreement, and Non-Standardized Discretionary Contribution Plan
No. 003 Adoption Agreement, as currently in effect, is incorporated herein
by reference to Exhibit 14(g) of Fidelity Securities Fund's (File No.
2-93601) Post Effective Amendment No. 33.
(o) Fidelity Investments 403(b) Sample Plan Basic Plan Document and
Adoption Agreement, as currently in effect, is incorporated herein by
reference to Exhibit 14(p) of Fidelity Securities Fund's (File No. 2-93601)
Post Effective Amendment No. 33.
(p) Fidelity Defined Contribution Retirement Plan and Trust Agreement, as
currently in effect, is incorporated herein by reference to Exhibit 14(c)
of Fidelity Securities Fund's (File No. 2-93601) Post Effective Amendment
No. 33.
(15) (a) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Global Bond Fund is incorporated herein by reference to Exhibit 15(a) of
Post-Effective Amendment No. 58.
(b) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Short-Term World Income Fund (currently Fidelity Short-Term World Bond
Fund) is incorporated herein by reference to Exhibit 15(b) of
Post-Effective Amendment No. 58.
(c) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity New
Markets Income Fund is incor- porated herein by reference to Exhibit 15(c)
of Post-Effective Amendment No. 58.
(16) (a) Schedule for computation of total return calculations for
Fidelity Canada Fund is incorporated herein by reference to Exhibit
16(a) of Post-Effective Amendment No. 64.
(b) Schedule for computation of moving averages is incorporated herein by
reference to Exhibit 16(c) of Post Effective Amendment No. 53.
(c) Schedule for computation of 30 day yield calculations for Fidelity
Global Bond Fund is filed herein as Exhibit 16(c).
(17) Financial Data Schedules are filed herein as Exhibit 27.
(18) Not applicable.
Item 25. Persons Controlled by or Under Common Control with Registrant
The Board of Trustees of Registrant is the same as the Board of Trustees
of other funds advised by FMR, each of which has Fidelity Management &
Research Company as its investment adviser. In addition, the officers of
these funds are substantially identical. Nonetheless, Registrant takes the
position that it is not under common control with these other funds since
the power residing in the respective boards and officers arises as the
result of an official position with the respective funds.
Item 26. Number of Holders of Securities: December 31, 1995
Title of Class: Shares of Beneficial Interest
Name of Series Number of Record Holders

Fidelity Overseas Fund
554,756

Fidelity Europe Fund 58,502

Fidelity Pacific Basin Fund 71,794

Fidelity International Growth & Income Fund
151,174

Fidelity International Value Fund 6,917

Fidelity Global Bond Fund
26,033

Fidelity Canada Fund 21,206

Fidelity Worldwide Fund
101,312

Fidelity Emerging Markets Fund
122,060

Fidelity New Markets Income Fund
12,462

Fidelity Short-Term World Bond Fund
8,029

Fidelity Diversified International Fund 31,421

Fidelity Japan Fund 37,242

Fidelity Latin America Fund 63,936

Fidelity Southeast Asia Fund 61,771

Fidelity Europe Capital Appreciation Fund 18,928

Fidelity France Fund 221

Fidelity Germany Fund 312

Fidelity United Kingdom Fund 115

Fidelity Hong Kong and China Fund 1,480

Fidelity Japan Small Companies Fund 4,975

Fidelity Nordic Fund 407

Fidelity Diversified Global Fund 1

Item 27. Indemnification
Article XI, Section 2 of the Declaration of Trust sets forth the
reasonable and fair means for determining whether indemnification shall be
provided to any past or present Trustee or officer. It states that the
Registrant shall indemnify any present or past Trustee or officer to the
fullest extent permitted by law against liability and all expenses
reasonably incurred by him in connection with any claim, action, suit, or
proceeding in which he is involved by virtue of his service as a Trustee,
an officer, or both. Additionally, amounts paid or incurred in settlement
of such matters are covered by this indemnification. Indemnification will
not be provided in certain circumstances, however. These include instances
of willful misfeasance, bad faith, gross negligence, and reckless disregard
of the duties involved in the conduct of the particular office involved.
Pursuant to Section 11 of the Distribution Agreement, the Registrant
agrees to indemnify and hold harmless the Distributor and each of its
directors and officers and each person, if any, who controls the
Distributor within the meaning of Section 15 of the 1933 Act against any
loss, liability, claim, damages or expense arising by reason of any person
acquiring any shares, based upon the ground that the registration
statement, Prospectus, Statement of Additional Information, shareholder
reports or other information filed or made public by the Registrant
included a materially misleading statement or omission. However, the
Registrant does not agree to indemnify the Distributor or hold it harmless
to the extent that the statement or omission was made in reliance upon, and
in conformity with, information furnished to the Registrant by or on behalf
of the Distributor. The Registrant does not agree to indemnify the parties
against any liability to which they would be subject by reason of willful
misfeasance, bad faith, gross negligence, and reckless disregard of the
obligations and duties under the Distribution Agreement.
Pursuant to the agreement by which Fidelity Service Company ("Service") is
appointed sub-transfer agent, the Transfer Agent agrees to indemnify
Service for its losses, claims, damages, liabilities and expenses to the
extent the Transfer Agent is entitled to and receives indemnification from
the Registrant for the same events. Under the Transfer Agency Agreement,
the Registrant agrees to indemnify and hold the Transfer Agent harmless
against any losses, claims, damages, liabilities, or expenses resulting
from:
(1) any claim, demand, action or suit brought by any person other than the
Registrant, which names the Transfer Agent and/or the Registrant as a party
and is not based on and does not result from the Transfer Agent's willful
misfeasance, bad faith, negligence or reckless disregard of its duties, and
arises out of or in connection with the Transfer Agent's performance under
the Transfer Agency Agreement; or
(2) any claim, demand, action or suit (except to the extent contributed to
by the Transfer Agent's willful misfeasance, bad faith, negligence or
reckless disregard of its duties) which results from the negligence of the
Registrant, or from the Transfer Agent's acting upon any instruction(s)
reasonably believed by it to have been executed or communicated by any
person duly authorized by the Registrant, or as a result of the Transfer
Agent's acting in reliance upon advice reasonably believed by the Transfer
Agent to have been given by counsel for the Registrant, or as a result of
the Transfer Agent's acting in reliance upon any instrument or stock
certificate reasonably believed by it to have been genuine and signed,
countersigned or executed by the proper person.
Item 28. Business and Other Connections of Investment Adviser
(1) FIDELITY MANAGEMENT & RESEARCH COMPANY
FMR serves as investment adviser to a number of other investment
companies. The directors and officers of the Adviser have held, during the
past two fiscal years, the following positions of a substantial nature.

<TABLE>
<CAPTION>
<S> <C>
Edward C. Johnson 3d Chairman of the Executive Committee of FMR; President
and Chief Executive Officer of FMR Corp.; Chairman of
the Board and a Director of FMR, FMR Corp., FMR Texas
Inc., Fidelity Management & Research (U.K.) Inc., and
Fidelity Management & Research (Far East) Inc.; President
and Trustee of funds advised by FMR.

J. Gary Burkhead President of FMR; Managing Director of FMR Corp.;
President and a Director of FMR Texas Inc., Fidelity
Management & Research (U.K.) Inc., and Fidelity
Management & Research (Far East) Inc.; Senior Vice
President and Trustee of funds advised by FMR.

Peter S. Lynch Vice Chairman and Director of FMR.

Robert Beckwitt Vice President of FMR and of funds advised by FMR.

David Breazzano Vice President of FMR (1993) and of a fund advised by
FMR.

Stephan Campbell Vice President of FMR (1993).

Dwight Churchill Vice President of FMR (1993).

William Danoff Vice President of FMR (1993) and of a fund advised by
FMR.

Scott DeSano Vice President of FMR (1993).

Penelope Dobkin Vice President of FMR and of a fund advised by FMR.

Larry Domash Vice President of FMR (1993).

George Domolky Vice President of FMR (1993) and of a fund advised by
FMR.

Robert K. Duby Vice President of FMR.

Margaret L. Eagle Vice President of FMR and of a fund advised by FMR.

Kathryn L. Eklund Vice President of FMR.

Richard B. Fentin Senior Vice President of FMR (1993) and of a fund advised
by FMR.

Daniel R. Frank Vice President of FMR and of funds advised by FMR.

Michael S. Gray Vice President of FMR and of funds advised by FMR.

Lawrence Greenberg Vice President of FMR (1993).

Barry A. Greenfield Vice President of FMR and of a fund advised by FMR.

William J. Hayes Senior Vice President of FMR; Equity Division Leader.

Robert Haber Vice President of FMR and of funds advised by FMR.

Richard C. Habermann Senior Vice President of FMR (1993).

Daniel Harmetz Vice President of FMR and of a fund advised by FMR.

Ellen S. Heller Vice President of FMR.

</TABLE>

John Hickling Vice President of FMR (1993) and of funds advised by
FMR.

Robert F. Hill Vice President of FMR; Director of Technical Research.

Curtis Hollingsworth Vice President of FMR (1993).

Stephen P. Jonas Treasurer and Vice President of FMR (1993)); Treasurer of
FMR Texas Inc. (1993), Fidelity Management & Research
(U.K.) Inc. (1993), and Fidelity Management & Research
(Far East) Inc. (1993).

David B. Jones Vice President of FMR (1993).

Steven Kaye Vice President of FMR (1993) and of a fund advised by
FMR.

Frank Knox Vice President of FMR (1993).

Robert A. Lawrence Senior Vice President of FMR (1993); High Income
Division Leader.

Alan Leifer Vice President of FMR and of a fund advised by FMR.

Harris Leviton Vice President of FMR (1993) and of a fund advised by
FMR.

Bradford E. Lewis Vice President of FMR and of funds advised by FMR.

Malcolm W. MacNaught III Vice President of FMR (1993).

Robert H. Morrison Vice President of FMR; Director of Equity Trading.

David Murphy Vice President of FMR and of funds advised by FMR.

Andrew Offit Vice President of FMR (1993).

Judy Pagliuca Vice President of FMR (1993).

Jacques Perold Vice President of FMR.

Anne Punzak Vice President of FMR and of funds advised by FMR.

Lee Sandwen Vice President of FMR (1993).

Patricia A. Satterthwaite Vice President of FMR (1993) and of a fund advised by
FMR.

Thomas T. Soviero Vice President of FMR (1993).

Richard Spillane Vice President of FMR; Senior Vice President and Director
of Operations and Compliance of FMR U.K. (1993).

Robert E. Stansky Senior Vice President of FMR (1993) and of funds advised
by FMR.

Gary L. Swayze Vice President of FMR and of funds advised by FMR;
Tax-Free Fixed-Income Group Leader.

Thomas Sweeney Vice President of FMR (1993).

Beth F. Terrana Senior Vice President of FMR (1993) and of funds advised
by FMR.

Joel Tillinghast Vice President of FMR (1993) and of a fund advised by
FMR.

Robert Tucket Vice President of FMR (1993).

George A. Vanderheiden Senior Vice President of FMR; Vice President of funds
advised by FMR; Growth Group Leader.

Jeffrey Vinik Senior Vice President of FMR (1993) and of a fund advised
by FMR.

Arthur S. Loring Senior Vice President (1993), Clerk, and General Counsel
of FMR; Vice President, Legal of FMR Corp.; Secretary of
funds advised by FMR.

</TABLE>

(2) FIDELITY MANAGEMENT & RESEARCH (U.K.) INC. (FMR U.K.)
FMR U.K. provides investment advisory services to Fidelity Management &
Research Company and Fidelity Management Trust Company. The directors and
officers of the Sub-Adviser have held the following positions of a
substantial nature during the past two fiscal years.

<TABLE>
<CAPTION>
<S> <C>
Edward C. Johnson 3d Chairman and Director of FMR U.K.; Chairman of the
Executive Committee of FMR; Chief Executive Officer of FMR
Corp.; Chairman of the Board and a Director of FMR, FMR
Corp., FMR Texas Inc., and Fidelity Management & Research
(Far East) Inc.; President and Trustee of funds advised by FMR.

J. Gary Burkhead President and Director of FMR U.K.; President of FMR;
Managing Director of FMR Corp.; President and a Director of
FMR Texas Inc. and Fidelity Management & Research (Far
East) Inc.; Senior Vice President and Trustee of funds advised
by FMR.

Richard C. Habermann Senior Vice President of FMR U.K.; Senior Vice President of
Fidelity Management & Research (Far East) Inc.; Director of
Worldwide Research of FMR.

Richard Spillane Senior Vice President and Director of Operations and
Compliance of FMR U.K. (1993).

Stephen P. Jonas Treasurer of FMR U.K. (1993), Fidelity Management &
Research (Far East) Inc. (1993), and FMR Texas Inc. (1993);
Treasurer and Vice President of FMR (1993).

David Weinstein Clerk of FMR U.K.; Clerk of Fidelity Management & Research
(Far East) Inc.; Secretary of FMR Texas Inc.

</TABLE>

(3) FIDELITY MANAGEMENT & RESEARCH (FAR EAST) INC. (FMR Far East)
FMR Far East provides investment advisory services to Fidelity Management
& Research Company and Fidelity Management Trust Company. The directors
and officers of the Sub-Adviser have held the following positions of a
substantial nature during the past two fiscal years.

<TABLE>
<CAPTION>
<S> <C>
Edward C. Johnson 3d Chairman and Director of FMR Far East; Chairman of the
Executive Committee of FMR; Chief Executive Officer of
FMR Corp.; Chairman of the Board and a Director of
FMR, FMR Corp., FMR Texas Inc. and Fidelity
Management & Research (U.K.) Inc.; President and
Trustee of funds advised by FMR.

J. Gary Burkhead President and Director of FMR Far East; President of
FMR; Managing Director of FMR Corp.; President and a
Director of FMR Texas Inc. and Fidelity Management &
Research (U.K.) Inc.; Senior Vice President and Trustee
of funds advised by FMR.

Richard C. Habermann Senior Vice President of FMR Far East; Senior Vice
President of Fidelity Management & Research (U.K.)
Inc.; Director of Worldwide Research of FMR.

William R. Ebsworth Vice President of FMR Far East.

Bill Wilder Vice President of FMR Far East (1993).

Stephen P. Jonas Treasurer of FMR Far East (1993), Fidelity Management
& Research (U.K.) Inc. (1993), and FMR Texas Inc.
(1993); Treasurer and Vice President of FMR (1993).

David C. Weinstein Clerk of FMR Far East; Clerk of Fidelity Management &
Research (U.K.) Inc.; Secretary of FMR Texas Inc.

</TABLE>

(4) FIDELITY INTERNATIONAL INVESTMENT ADVISORS
Pembroke Hall, 42 Crow Lane, Pembroke, Bermuda
The directors and officers of Fidelity International Investment Advisors
(FIIA) have held, during the past two fiscal years, the following positions
of a substantial nature.
<TABLE>
<CAPTION>
<S> <C>
Anthony J. Bolton Director of FIIA and FIIAL (U.K.); Director of Fidelity
International Management Holdings Limited.

Martin P. Cambridge Director of FIIA and FIIAL (U.K.); Chief Financial
Officer of Fidelity International Ltd. and Fidelity
Investment Services Ltd.

Charles T. Collis Director of FIIA; Partner in Conyers, Dill & Pearman,
Hamilton, Bermuda; Secretary to many companies in the
Fidelity international group of companies.

William R. Ebsworth Director of FIIA.

Brett P. Goodin Director, Vice President, and Secretary of FIIA (1994).

Terrence V. Richards Assistant Secretary of FIIA (1994).

David J. Saul Director and President of FIIA; Director of Fidelity
International Limited.
</TABLE>
(5) FIDELITY INTERNATIONAL INVESTMENT ADVISORS (U.K.) LIMITED
27-28 Lovat Lane, London, England
The directors and officers of Fidelity International Investment Advisors
(U.K.) Limited (FIIAL (U.K.)) have held, during the past two fiscal years,
the following positions of a substantial nature.
<TABLE>
<CAPTION>
<S> <C>
Anthony J. Bolton Director of FIIAL (U.K.) and FIIA; Director of Fidelity
International Management Holdings Limited.

Martin P. Cambridge Director and Secretary of FIIAL (U.K.) and FIIA; Chief
Financial Officer of Fidelity Investments Japan Limited,
Fidelity International Ltd., and Fidelity Investment
Services Ltd.

C. Bruce Johnstone Director of FIIAL (U.K.).

(6) FIDELITY INVESTMENTS JAPAN LIMITED
Shiroyama JT Mori Bldg., 3-1, Toranomon 4-chome, Minato-ku, Tokyo
105, Japan
The directors and officers of Fidelity Investments Japan Limited have
held, during the past two fiscal years, the following positions of a
substantial nature.
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
Edward C. Johnson 3d Chairman & Representative Director of Fidelity
Investments Japan Limited, Chairman and Director of
FMR Far East, Chairman of the Executive Committee of
FMR, Chief Executive Officer of FMR Corp., Chairman
of the Board and a Director of FMR, FMR Corp., FMR
Texas Inc. and Fidelity Management & Research (U.K.)
Inc., President and Trustee of funds advised by FMR.

Yasuo Kuramoto Vice Chairman & Representative Director & Portfolio
Manager of Fidelity Investments Japan Limited,
Chairman & Representative Director & Portfolio
Adviser of Fidelity International Investment Advisors
(Japan) Limited (1991-1993)

Yasukazu Akamatsu President & Representative Director of Fidelity
Investments Japan Limited, Portfolio Manager of
Fidelity Investments Japan Limited (1993).

Hiroshi Yamashita Managing Director & Portfolio Manager of Fidelity
Investments Japan Limited.

Nobuhide Kamiyama Director & General Manager of Planning and Marketing
of Fidelity Investments Japan Limited.

Arthur M. Jesson Director & General Manager of Information Systems
and Trading of Fidelity Investments Japan Limited.

Martin P. Cambridge Director of Fidelity Investments Japan Limited, Chief
Financial Officer of Fidelity International Limited,
Financial Officer of Fidelity Investments International,
Director of Fidelity International Investment Advisors,
Director of Fidelity Investments (Taiwan) Limited,
Director & Secretary of Fidelity International
Investment Advisors (U.K.) Limited.

Noboru Kawai Director & General Manager of Administration of
Fidelity Investments Japan Limited.

Dan H. Blanks Director of Fidelity Investments Japan Limited,
President of Fidelity International Investments Limited,
Director of Fidelity International Limited (1993).

Shinobu Kasaya Portfolio Manager of Fidelity Investments Japan
Limited.

Ken-ichi Mizushita Portfolio Manager of Fidelity Investments Japan
Limited.

Edward S.J. Bang Portfolio Manager of Fidelity Investments Japan
Limited (1994), Senior Analyst of Fidelity Management
& Research (Far East) Inc. (1991-1994).

Shigeki Makino Portfolio Manager of Fidelity Investments Japan
Limited (1994), Senior Analyst of Fidelity Management
& Research (Far East) Inc. (1991-1994).

Asako Kibe Portfolio Manager of Fidelity Investments Japan
Limited (1995), Senior Analyst of Fidelity Management
& Research (Far East) Inc. (1991-1995).

</TABLE>

Item 29. Principal Underwriters
(a) Fidelity Distributors Corporation (FDC) acts as distributor for most
funds advised by FMR.
(b)

Name and Principal Positions and Offices Positions and Offices

Business Address* With Underwriter With Registrant

Edward C. Johnson 3d Director Trustee and President

W. Humphrey Bogart Director None

Kurt A. Lange President and Treasurer None

Thomas W. Littauer Senior Vice President None

Arthur S. Loring Vice President and Clerk Secretary

* 82 Devonshire Street, Boston, MA
(c) Not applicable.
Item 30. Location of Accounts and Records
All accounts, books, and other documents required to be maintained by
Section 31a of the 1940 Act and the Rules promulgated thereunder are
maintained by Fidelity Management & Research Company or Fidelity Service
Co., 82 Devonshire Street, Boston, MA 02109, or the funds' respective
custodians: The Chase Manhattan Bank, 1211 Avenue of the Americas, New
York, N.Y. and Brown Brothers Harriman & Co., 40 Water Street, Boston, MA.
Item 31. Management Services
Not applicable.
Item 32. Undertakings
(a) The Registrant undertakes to file a Post-Effective Amendment, using
financial statements for Fidelity France Fund, Fidelity Germany Fund,
Fidelity United Kingdom Fund, Fidelity Japan Small Companies Fund, Fidelity
Hong Kong and China Fund, and Fidelity Nordic Fund, which need not be
certified, within six months of the funds' effectiveness, unless permitted
by the SEC to extend this period.
(b) The Registrant undertakes for Fidelity France Fund, Fidelity Germany
Fund, Fidelity United Kingdom Fund, Fidelity Japan Small Companies Fund,
Fidelity Hong Kong and China Fund, and Fidelity Nordic Fund: 1) to call a
meeting of shareholders for the purpose of voting upon the question of
removal of a trustee or trustees, when requested to do so by record holders
of not less than 10% of its outstanding shares; and 2) to assist in
communications with other shareholders pursuant to Section 16(c)(1) and
(2), whenever shareholders meeting the qualifications set forth in 16(c)
seek the opportunity to communicate with other shareholders with a view
toward requesting a meeting.
(c) The Registrant, on behalf of each fund, provided the information
required by Item 5A is contained in the annual report, undertakes to
furnish to each person to whom a prospectus has been delivered, upon their
request and without charge, a copy of the Registrant's latest annual report
to shareholders.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it meets all
of the requirements for the effectiveness of this Registration Statement
pursuant to Rule 485(b) under the Securities Act of 1933 and has duly
caused this Post-Effective Amendment No. 65 to the Registration Statement
to be signed on its behalf by the undersigned, thereunto duly authorized,
in the City of Boston, and State of Massachusetts, on the 22nd day of
February 1996.
FIDELITY INVESTMENT TRUST
By /s/Edward C. Johnson 3d (dagger)
Edward C. Johnson 3d, President
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following persons in
the capacities and on the dates indicated.
(Signature) (Title) (Date)

<TABLE>
<CAPTION>
<S> <C> <C>
/s/Edward C. Johnson 3d(dagger) President and Trustee February 22, 1996

Edward C. Johnson 3d (Principal Executive Officer)

</TABLE>

/s/Kenneth A. Rathgeber Treasurer February 22, 1996

Kenneth A. Rathgeber

/s/J. Gary Burkhead Trustee February 22, 1996

J. Gary Burkhead

/s/Ralph F. Cox * Trustee February 22, 1996

Ralph F. Cox

/s/Phyllis Burke Davis * Trustee February 22, 1996

Phyllis Burke Davis

/s/Richard J. Flynn * Trustee February 22, 1996

Richard J. Flynn

/s/E. Bradley Jones * Trustee February 22, 1996

E. Bradley Jones

/s/Donald J. Kirk * Trustee February 22, 1996

Donald J. Kirk

/s/Peter S. Lynch * Trustee February 22, 1996

Peter S. Lynch

/s/Edward H. Malone * Trustee February 22, 1996

Edward H. Malone

/s/Marvin L. Mann_____* Trustee February 22, 1996

Marvin L. Mann

/s/Gerald C. McDonough* Trustee February 22, 1996

Gerald C. McDonough

/s/Thomas R. Williams * Trustee February 22, 1996

Thomas R. Williams

(dagger) Signatures affixed by J. Gary Burkhead pursuant to a power of
attorney dated December 15, 1994 and filed herewith.
* Signature affixed by Robert C. Hacker pursuant to a power of attorney
dated December 15, 1994 and filed herewith.
POWER OF ATTORNEY
We, the undersigned Directors, Trustees or General Partners, as the case
may be, of the following investment companies:

<TABLE>
<CAPTION>
<S> <C>
Fidelity Advisor Annuity Fund Fidelity Income Fund
Fidelity Advisor Series I Fidelity Institutional Trust
Fidelity Advisor Series II Fidelity Investment Trust
Fidelity Advisor Series III Fidelity Magellan Fund
Fidelity Advisor Series IV Fidelity Massachusetts Municipal Trust
Fidelity Advisor Series V Fidelity Mt. Vernon Street Trust
Fidelity Advisor Series VI Fidelity Municipal Trust
Fidelity Advisor Series VII Fidelity New York Municipal Trust
Fidelity Advisor Series VIII Fidelity Puritan Trust
Fidelity California Municipal Trust Fidelity School Street Trust
Fidelity Capital Trust Fidelity Securities Fund
Fidelity Charles Street Trust Fidelity Select Portfolios
Fidelity Commonwealth Trust Fidelity Sterling Performance Portfolio, L.P.
Fidelity Congress Street Fund Fidelity Summer Street Trust
Fidelity Contrafund Fidelity Trend Fund
Fidelity Corporate Trust Fidelity U.S. Investments-Bond Fund, L.P.
Fidelity Court Street Trust Fidelity U.S. Investments-Government Securities
Fidelity Deutsche Mark Performance Fund, L.P.
Portfolio, L.P. Fidelity Union Street Trust
Fidelity Devonshire Trust Fidelity Yen Performance Portfolio, L.P.
Fidelity Exchange Fund Spartan U.S. Treasury Money Market
Fidelity Financial Trust Fund
Fidelity Fixed-Income Trust Variable Insurance Products Fund
Fidelity Government Securities Fund Variable Insurance Products Fund II
Fidelity Hastings Street Trust

</TABLE>

plus any other investment company for which Fidelity Management & Research
Company acts as investment adviser and for which the undersigned
individuals serve as Board Members (collectively, the "Funds"), hereby
severally constitute and appoint Arthur J. Brown, Arthur C. Delibert,
Robert C. Hacker, Richard M. Phillips, Dana L. Platt and Stephanie A.
Djinis, each of them singly, our true and lawful attorneys-in-fact, with
full power of substitution, and with full power to each of them, to sign
for us and in our names in the appropriate capacities, all Pre-Effective
Amendments to any Registration Statements of the Funds, any and all
subsequent Post-Effective Amendments to said Registration Statements, any
Registration Statements on Form N-14, and any supplements or other
instruments in connection therewith, and generally to do all such things in
our names and behalf in connection therewith as said attorneys-in-fact deem
necessary or appropriate, to comply with the provisions of the Securities
Act of 1933 and Investment Company Act of 1940, and all related
requirements of the Securities and Exchange Commission, hereby ratifying
and confirming all that said attorneys-in-fact or their substitutes may do
or cause to be done by virtue hereof.
WITNESS our hands on this fifteenth day of December, 1994.
/s/Edward C. Johnson 3d /s/Donald J. Kirk

Edward C. Johnson 3d Donald J. Kirk

/s/J. Gary Burkhead /s/Peter S. Lynch

J. Gary Burkhead Peter S. Lynch

/s/Ralph F. Cox /s/Marvin L. Mann

Ralph F. Cox Marvin L. Mann

/s/Phyllis Burke Davis /s/Edward H. Malone

Phyllis Burke Davis Edward H. Malone

/s/Richard J. Flynn /s/Gerald C. McDonough

Richard J. Flynn Gerald C. McDonough

/s/E. Bradley Jones /s/Thomas R. Williams

E. Bradley Jones Thomas R. Williams

POWER OF ATTORNEY
I, the undersigned President and Director, Trustee or General Partner, as
the case may be, of the following investment companies:

<TABLE>
<CAPTION>
<S> <C>
Fidelity Advisor Annuity Fund Fidelity Institutional Trust
Fidelity Advisor Series I Fidelity Investment Trust
Fidelity Advisor Series II Fidelity Magellan Fund
Fidelity Advisor Series III Fidelity Massachusetts Municipal Trust
Fidelity Advisor Series IV Fidelity Money Market Trust
Fidelity Advisor Series V Fidelity Mt. Vernon Street Trust
Fidelity Advisor Series VI Fidelity Municipal Trust
Fidelity Advisor Series VII Fidelity New York Municipal Trust
Fidelity Advisor Series VIII Fidelity Puritan Trust
Fidelity California Municipal Trust Fidelity School Street Trust
Fidelity Capital Trust Fidelity Securities Fund
Fidelity Charles Street Trust Fidelity Select Portfolios
Fidelity Commonwealth Trust Fidelity Sterling Performance Portfolio, L.P.
Fidelity Congress Street Fund Fidelity Summer Street Trust
Fidelity Contrafund Fidelity Trend Fund
Fidelity Corporate Trust Fidelity U.S. Investments-Bond Fund, L.P.
Fidelity Court Street Trust Fidelity U.S. Investments-Government Securities
Fidelity Destiny Portfolios Fund, L.P.
Fidelity Deutsche Mark Performance Fidelity Union Street Trust
Portfolio, L.P. Fidelity Yen Performance Portfolio, L.P.
Fidelity Devonshire Trust Spartan U.S. Treasury Money Market
Fidelity Exchange Fund Fund
Fidelity Financial Trust Variable Insurance Products Fund
Fidelity Fixed-Income Trust Variable Insurance Products Fund II
Fidelity Government Securities Fund
Fidelity Hastings Street Trust
Fidelity Income Fund

</TABLE>

plus any other investment company for which Fidelity Management & Research
Company acts as investment adviser and for which the undersigned individual
serves as President and Board Member (collectively, the "Funds"), hereby
severally constitute and appoint J. Gary Burkhead, my true and lawful
attorney-in-fact, with full power of substitution, and with full power to
sign for me and in my name in the appropriate capacity, all Pre-Effective
Amendments to any Registration Statements of the Funds, any and all
subsequent Post-Effective Amendments to said Registration Statements, any
Registration Statements on Form N-14, and any supplements or other
instruments in connection therewith, and generally to do all such things in
my name and behalf in connection therewith as said attorney-in-fact deem
necessary or appropriate, to comply with the provisions of the Securities
Act of 1933 and Investment Company Act of 1940, and all related
requirements of the Securities and Exchange Commission. I hereby ratify
and confirm all that said attorneys-in-fact or their substitutes may do or
cause to be done by virtue hereof.
WITNESS my hand on the date set forth below.
/s/Edward C. Johnson 3d December 15, 1994

Edward C. Johnson 3d

EXHIBIT 8(D)
APPENDIX "A"
TO
CUSTODIAN AGREEMENT
BETWEEN
Brown Brothers Harriman & Co. and each of the following Investment
Companies
Dated as of January 18, 1996
The following is a list of Funds and their respective Portfolios for which
the Custodian shall serve under a Custodian Agreement dated as of September
1, 1994:
Fund Portfolio Effective as of:
Fidelity Advisor Annuity Fund Fidelity Advisor Annuity Growth Opportunities
Fund September 1, 1994
Fidelity Advisor Series I Fidelity Advisor Large Cap Fund January 18, 1996
Fidelity Advisor Mid Cap Fund January 18, 1996
Fidelity Advisor Series II Fidelity Advisor Growth Opportunities Fund
September 1, 1994

Fidelity Advisor Series V Fidelity Advisor Global Resources Fund September
1, 1994

Fidelity Advisor Series VIII Fidelity Advisor Strategic Opportunities Fund
September 1, 1994

Fidelity Capital Trust Fidelity Capital Appreciation Fund September 1, 1994
Fidelity Disciplined Equity Fund September 1, 1994
Fidelity Stock Selector September 1, 1994
Fidelity Value Fund September 1, 1994
Fidelity Commonwealth Trust Fidelity Market Index Fund September 1, 1994
Fidelity Small Cap Stock Fund September 1, 1994
Fidelity Large Cap Stock Fund May 8, 1995
Fidelity Congress Street Fund Fidelity Congress Street Fund September 1,
1994
Fidelity Contrafund Fidelity Contrafund September 1, 1994
Fidelity Devonshire Trust Fidelity Real Estate Investment Portfolio
September 1, 1994
Fidelity Utilities Fund September 1, 1994
Fidelity Exchange Fund Fidelity Exchange Fund September 1, 1994
Fidelity Financial Trust Fidelity Convertible Securities Fund September 1,
1994
Fidelity Retirement Growth Fund September 1, 1994
Fidelity Hastings Street Trust Fidelity Fifty September 1, 1994
Fidelity Institutional Trust Fidelity U.S. Equity Index Portfolio September
1, 1994
Fidelity Investment Trust Fidelity Canada Fund September 1, 1994
Fidelity Latin America Fund September 1, 1994
Fidelity Nordic Fund September 14, 1995
Fidelity United Kingdom Fund September 14, 1995
Fidelity France Fund September 14, 1995
Fidelity Germany Fund September 14, 1995
Fidelity Hong Kong & China Fund September 14, 1995
Fidelity Japan Small Companies Fund September 14, 1995
Fidelity Short Term World Income Fund September 1, 1994
Fidelity Magellan Fund Fidelity Magellan Fund September 1, 1994
Fidelity Mt. Vernon Street Trust Fidelity Emerging Growth Fund September 1,
1994
Fidelity Growth Company Fund September 1, 1994
Fidelity Puritan Trust Fidelity Balanced Fund September 1, 1994
Fidelity Global Balanced Fund September 1, 1994
Fidelity Low-Priced Stock Fund September 1, 1994
Fidelity Securities Fund Fidelity Blue Chip Growth Fund September 1, 1994
Fidelity Dividend Growth Fund September 1, 1994
Fidelity OTC Portfolio September 1, 1994
Fidelity Select Portfolios Air Transportation Portfolio September 1, 1994
American Gold Portfolio September 1, 1994
Automotive Portfolio September 1, 1994
Biotechnology Portfolio September 1, 1994
Brokerage and Investment Management Portfolio September 1, 1994
Chemicals Portfolio September 1, 1994
Computers Portfolio September 1, 1994
Construction and Housing Portfolio September 1, 1994
Consumer Products Portfolio September 1, 1994
Defense and Aerospace Portfolio September 1, 1994
Developing Communications Portfolio September 1, 1994
Electronics Portfolio September 1, 1994
Energy Portfolio September 1, 1994
Energy Service Portfolio September 1, 1994
Environmental Services Portfolio September 1, 1994
Financial Services Portfolio September 1, 1994
Food and Agriculture Portfolio September 1, 1994
Health Care Portfolio September 1, 1994
Home Finance Portfolio September 1, 1994
Industrial Equipment Portfolio September 1, 1994
Industrial Materials Portfolio September 1, 1994
Insurance Portfolio September 1, 1994
Leisure Portfolio September 1, 1994
Medical Delivery Portfolio September 1, 1994
Multimedia Portfolio September 1, 1994
Natural Gas Portfolio September 1, 1994
Paper and Forest Products Portfolio September 1, 1994
Precious Metals and Minerals Portfolio September 1, 1994
Regional Banks Portfolio September 1, 1994
Retailing Portfolio September 1, 1994
Software and Computer Service Portfolio September 1, 1994
Technology Portfolio September 1, 1994
Telecommunications Portfolio September 1, 1994
Transportation Portfolio September 1, 1994
Utilities Growth Portfolio September 1, 1994
Variable Insurance Products Fund Growth Portfolio September 1, 1994
Variable Insurance Products Fund II Index 500 Portfolio September 1, 1994
Contrafund Portfolio September 1, 1994

IN WITNESS WHEREOF, each of the parties hereto has caused this Appendix to
be executed in its name and behalf as of the day and year first set forth
opposite each such Portfolio.
Each of the Investment Companies Brown Brothers Harriman & Co.
Listed on this Appendix "a", on behalf
of each of their respective portfolios
By: /s/Kenneth A. Rathgeber By: /s/Stokley P. Towles
Name: Kenneth A. Rathgeber Name: Stokley P. Towles
Title: Treasurer Title: Partner

EXHIBIT 11(A)
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference, into the Prospectus
and Statement of Additional Information constituting part of Post-Effective
Amendment No. 65 to the Registration Statement on Form N-1A of Fidelity
Investment Trust: Fidelity Short-Term World Income Fund and Fidelity Global
Bond Fund, of our reports dated February 8, 1996 and February 9, 1996,
respectively, on the financial statements and financial highlights included
in the December 31, 1995 Annual Reports to Shareholders of Fidelity
Short-Term World Income Fund and Fidelity Global Bond Fund, respectively.
We further consent to the references to our Firm under the headings
"Financial Highlights" in the Prospectus and "Auditor" in the Statement of
Additional Information.
/s/COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
February 20, 1996

EXHIBIT 11(B)
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference, into the Prospectus
and Statement of Additional Information constituting part of Post-Effective
Amendment No. 65 to the Registration Statement on Form N-1A of Fidelity
Investment Trust: Fidelity New Markets Income Fund, of our report dated
February 9, 1996 on the financial statements and financial highlights
included in the December 31, 1995 Annual Report to Shareholders of Fidelity
New Markets Income Fund.
We further consent to the references to our Firm under the headings
"Financial Highlights" in the Prospectus and "Auditor" in the Statement of
Additional Information.
/s/PRICE WATERHOUSE LLP
Boston, Massachusetts
February 20, 1996

Exhibit 16(c)
SCHEDULE FOR COMPUTATION OF PERFORMANCE CALCULATIONS
CUMULATIVE TOTAL RETURNS and their income and capital components are
described in the fund's Statement of Additional Information, and are based
on the net asset values, dividends, capital gain distributions, and
reinvestment prices of the historical period covered.
AVERAGE ANNUAL RETURNS are calculated according to the following formula:
Average Annual Return = [(1 + Cumulative Return)1/n] - 1
[where n = the number of years in the base period]
Included in this exhibit is a chart showing the data used to calculate the
30-Day Yield as of the fund's fiscal year end.
The 30-DAY YIELD is calculated according to the methods prescribed in Form
N-1A Item 22(b)(ii).
30-Day Total Net Income
30-Day Yield = 2<UNDEF>(--------------------------------------------------)
+ 1)6 - 1<UNDEF>
(30-Day Average Shares Outstanding)(Prior Day Price)
The TAX EQUIVALENT YIELD is calculated by the formula as follows:
Tax Equivalent Yield = (yield) / (1-[tax rate])
[where the tax rate is expressed in decimal notation (i.e. 28% = 0.28)]
For any municipal portfolio that invests a portion of its assets in
obligations subject to state taxes, the tax equivalent yield is adjusted to
reflect these investments.
Fidelity Global Bond Fund

<TABLE>
<CAPTION>
<S> <C>
GLOBAL BOND FUND

DECEMBER 1995

M/T/D

NET NET INC. NET NET

SHARES MTD SHARES GROSS INCOME W/ BREAKAGE MIL MIL

DATE: OUTSTANDING OUTSTANDING INCOME EXPENSES PER G/L & WRITE OFF RATE RATE BREAKAGE

12/4/95 20,769,564.30 83,091,555.57 48,439.62 6,793.29 41,646.33 35,279.40 0.001699 0.006364 -8.09

12/5/95 20,707,610.42 103,799,165.99 39,023.59 6,803.70 32,219.89 32,777.37 0.001583 0.007947 -2.78

12/6/95 20,627,645.79 124,426,811.77 39,021.70 6,799.17 32,222.53 32,785.32 0.001589 0.009536 7.99

12/7/95 20,506,357.50 144,933,169.28 38,786.61 6,777.96 32,008.65 32,582.21 0.001589 0.011125 -2.39

12/8/95 20,475,468.99 165,408,638.27 37,333.83 6,748.04 30,585.79 31,148.97 0.001521 0.012646 5.78

12/9/95 20,475,468.99 185,884,107.26 37,333.83 6,748.04 30,585.79 31,157.14 0.001522 0.014168 -6.52

12/10/95 20,475,468.99 206,359,576.25 37,333.83 6,748.04 30,585.79 31,144.84 0.001521 0.015689 1.65

12/11/95 20,399,014.90 226,758,591.15 39,967.31 6,741.39 33,225.92 33,793.14 0.001657 0.017346 -8.03

12/12/95 20,319,181.75 247,077,772.90 38,883.13 6,727.93 32,155.20 32,712.74 0.001610 0.018956 -1.14

12/13/95 20,252,817.33 267,330,590.23 37,813.82 6,707.53 31,106.29 31,670.72 0.001564 0.020520 -4.69

12/14/95 20,140,767.00 287,471,357.23 38,245.99 6,907.84 31,338.15 31,899.03 0.001584 0.022104 -3.94

12/15/95 20,082,932.19 307,554,289.42 38,077.85 6,685.29 31,392.56 31,954.19 0.001591 0.023695 2.24

12/16/95 20,082,932.19 327,637,221.61 38,077.85 6,685.29 31,392.56 31,960.37 0.001591 0.025286 8.42

12/17/95 20,082,932.19 347,720,153.80 38,077.85 6,685.29 31,392.56 31,966.55 0.001592 0.026878 -5.48

12/18/95 20,063,694.93 367,783,848.72 36,374.08 6,671.58 29,702.50 30,262.59 0.001508 0.028386 6.54

12/19/95 20,001,729.12 387,785,577.84 37,902.23 6,670.53 31,231.70 31,803.81 0.001590 0.029976 1.06

12/20/95 19,950,472.42 407,736,050.25 37,678.36 6,649.31 31,029.05 31,595.68 0.001584 0.031560 -5.87

12/21/95 19,937,188.05 427,673,238.30 37,534.18 6,646.82 30,887.36 31,447.06 0.001577 0.033137 6.11

12/22/95 19,888,768.00 447,562,006.30 37,661.07 6,641.77 31,019.30 31,590.98 0.001588 0.034725 7.62

12/23/95 19,888,768.00 467,450,774.30 37,661.07 6,641.77 31,019.30 30,593.59 0.001538 0.036263 4.66

12/24/95 19,888,768.00 487,339,542.30 37,661.07 6,641.77 31,019.30 30,590.63 0.001538 0.037801 1.70

12/25/95 19,888,768.00 507,228,310.30 37,661.07 6,641.77 31,019.30 31,153.24 0.001566 0.039367 7.43

12/26/95 19,858,270.96 527,086,581.26 36,214.06 6,635.71 29,578.35 29,718.02 0.001497 0.040864 -9.81

12/27/95 19,825,939.80 546,912,521.07 36,187.10 6,641.04 29,546.06 29,668.49 0.001496 0.042360 8.88

12/28/95 19,773,914.88 566,686,435.95 37,380.61 6,637.29 30,743.32 30,884.44 0.001562 0.043922 -2.42

12/29/95 19,737,720.12 586,424,156.07 37,207.37 6,623.56 30,583.81 30,713.63 0.001556 0.045478 1.74

12/30/95 19,737,720.12 606,161,876.20 37,207.37 6,623.56 30,583.81 30,717.79 0.001556 0.047034 5.90

12/31/95 19,737,720.12 625,899,596.32 37,207.37 6,623.56 30,583.81 30,721.95 0.001557 0.048591 -9.68

1/1/96 19,737,720.12 19,737,720.12 37,207.37 6,623.56 30,583.81 30,706.37 0.001556 0.001556 -5.52

1/2/96 19,799,952.90 39,537,673.02 37,915.40 6,611.08 31,304.32 31,431.04 0.001587 0.003143 8.51

30-DAY TOTAL 30-DAY

WRITE PRIOR DAY 30-DAY TOTAL 30-DAY AVERAGE DAILY YTM DAILY YTM YTM YTM 30-DAY

DATE: OFF PRICE SHARES OUTSTANDING SHARES OUTSTANDING INCOME NET INCOME NET INCOME MIL RATE YIELD

12/4/95 565.57 9.91 628,469,695.38 20,948,989.85 32,811.10 26,017.81 798,822.32 0.038070 4.65%

12/5/95 565.57 9.93 627,381,265.70 20,912,708.86 32,728.18 25,924.48 797,551.19 0.038071 4.65%

12/6/95 565.57 9.95 626,217,960.78 20,873,932.03 32,759.69 25,960.52 798,070.03 0.038162 4.65%

12/7/95 565.57 9.94 625,600,977.10 20,853,365.90 32,493.25 25,715.29 793,249.18 0.038002 4.63%

12/8/95 565.57 9.92 624,934,446.18 20,831,148.21 32,041.25 25,293.21 790,540.14 0.037909 4.63%

12/9/95 565.57 9.92 624,286,054.65 20,809,535.16 32,346.32 25,598.28 788,877.03 0.037870 4.62%

12/10/95 565.57 9.92 623,608,762.05 20,786,958.74 32,346.32 25,598.28 787,599.47 0.037848 4.62%

12/11/95 565.57 9.91 622,855,015.36 20,761,833.85 32,346.32 25,604.93 786,133.56 0.037819 4.62%

12/12/95 565.57 9.92 622,021,435.53 20,734,047.85 32,206.91 25,478.98 784,238.88 0.037773 4.61%

12/13/95 565.57 9.90 621,213,170.11 20,707,105.67 31,993.21 25,285.68 781,845.05 0.037708 4.61%

12/14/95 565.57 9.89 620,246,408.71 20,674,880.29 32,254.20 25,346.36 779,766.12 0.037657 4.61%

12/15/95 565.57 9.93 619,230,317.56 20,641,010.59 31,882.06 25,196.77 781,340.24 0.037792 4.61%

12/16/95 565.57 9.93 618,293,723.54 20,609,790.78 31,580.31 24,895.02 778,417.50 0.037712 4.60%

12/17/95 565.57 9.93 617,357,447.20 20,578,581.57 31,580.31 24,895.02 776,567.24 0.037680 4.60%

12/18/95 565.57 9.92 616,401,933.59 20,546,731.12 31,580.31 24,908.73 774,816.62 0.037652 4.60%

12/19/95 565.57 9.93 615,384,454.17 20,512,815.14 31,876.66 25,206.13 776,600.07 0.037797 4.61%

12/20/95 565.57 9.90 614,318,765.40 20,477,292.18 31,698.05 25,048.74 772,291.31 0.037649 4.61%

12/21/95 565.57 9.92 613,288,104.30 20,442,936.81 31,588.24 24,941.42 772,232.46 0.037712 4.61%

12/22/95 -433.33 9.92 612,502,498.74 20,416,749.96 31,675.30 25,033.53 770,456.22 0.037688 4.60%

12/23/95 -433.33 9.92 611,716,893.18 20,390,563.11 31,411.24 24,769.47 769,325.64 0.037681 4.60%

12/24/95 132.24 9.92 610,987,378.22 20,366,245.94 31,411.24 24,769.47 767,815.59 0.037655 4.60%

12/25/95 132.24 9.92 610,257,863.27 20,341,928.78 31,411.24 24,769.47 766,477.78 0.037635 4.60%

12/26/95 132.24 9.93 609,497,851.27 20,316,595.04 31,411.24 24,775.53 765,146.03 0.037614 4.59%

12/27/95 132.24 9.95 608,702,292.72 20,290,076.42 31,403.05 24,762.01 765,978.52 0.037702 4.59%

12/28/95 132.24 9.96 607,892,996.84 20,263,099.89 31,225.87 24,588.58 763,722.15 0.037640 4.58%

12/29/95 132.24 9.95 607,062,773.22 20,235,425.77 30,998.24 24,374.68 760,064.99 0.037510 4.57%

12/30/95 132.24 9.95 606,161,876.20 20,205,395.87 31,200.72 24,577.16 758,894.31 0.037503 4.57%

12/31/95 132.24 9.95 605,125,599.23 20,170,853.31 31,200.72 24,577.16 757,347.45 0.037482 4.56%

1/1/96 132.24 9.95 604,089,322.26 20,136,310.74 31,200.72 24,577.16 755,767.84 0.037468 4.56%

1/2/96 132.24 9.94 603,115,278.07 20,103,842.60 31,200.70 24,589.64 754,200.71 0.037455 4.56%

</TABLE>

<ARTICLE> 6
<CIK> 0000744822
<NAME> Fidelity Investment Trust
<SERIES>
<NUMBER> 41
<NAME> Fidelity Global Bond Fund
<MULTIPLIER> 1,000

<S>
<C>
<PERIOD-TYPE> year

<FISCAL-YEAR-END> dec-31-1995

<PERIOD-END> dec-31-1995

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<RECEIVABLES> 5,162

<ASSETS-OTHER> 1

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<PAID-IN-CAPITAL-COMMON> 294,002

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<OVERDISTRIBUTION-NII> 1,052

<ACCUMULATED-NET-GAINS> (94,844)

<OVERDISTRIBUTION-GAINS> 0

<ACCUM-APPREC-OR-DEPREC> (1,244)

<NET-ASSETS> 196,862

<DIVIDEND-INCOME> 0

<INTEREST-INCOME> 18,697

<OTHER-INCOME> (47)

<EXPENSES-NET> 2,939

<NET-INVESTMENT-INCOME> 15,711

<REALIZED-GAINS-CURRENT> (4,219)

<APPREC-INCREASE-CURRENT> 1,927

<NET-CHANGE-FROM-OPS> 13,419

<EQUALIZATION> 0

<DISTRIBUTIONS-OF-INCOME> 13,320

<DISTRIBUTIONS-OF-GAINS> 0

<DISTRIBUTIONS-OTHER> 1,563

<NUMBER-OF-SHARES-SOLD> 15,810

<NUMBER-OF-SHARES-REDEEMED> 36,076

<SHARES-REINVESTED> 1,337

<NET-CHANGE-IN-ASSETS> (185,941)

<ACCUMULATED-NII-PRIOR> 0

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<ARTICLE> 6
<CIK> 0000744822
<NAME> Fidelity Investment Trust
<SERIES>
<NUMBER> 101
<NAME> Fidelity Short-Term World Income Fund
<MULTIPLIER> 1,000

<S>
<C>
<PERIOD-TYPE> year

<FISCAL-YEAR-END> dec-31-1995

<PERIOD-END> dec-31-1995

<INVESTMENTS-AT-COST> 119,907

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<ARTICLE> 6
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<NAME> Fidelity Investment Trust
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<S>
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