FIDELITY INVESTMENT TRUST, N-30D, 1996-06-21

FIDELITY INVESTMENT TRUST
N-30D, 1996-06-21

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(2_FIDELITY_LOGOS)FIDELITY'S
TARGETED INTERNATIONAL EQUITY
FUNDS
FIDELITY CANADA FUND
FIDELITY EMERGING MARKETS FUND
FIDELITY EUROPE FUND
FIDELITY EUROPE CAPITAL APPRECIATION FUND
FIDELITY FRANCE FUND
FIDELITY GERMANY FUND
FIDELITY HONG KONG AND CHINA FUND
FIDELITY JAPAN FUND
FIDELITY JAPAN SMALL COMPANIES FUND
FIDELITY LATIN AMERICA FUND
FIDELITY NORDIC FUND
FIDELITY PACIFIC BASIN FUND
FIDELITY SOUTHEAST ASIA FUND
FIDELITY UNITED KINGDOM FUND
SEMIANNUAL REPORT
APRIL 30, 1996
CONTENTS

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

CANADA FUND 5 PERFORMANCE
6 FUND TALK: THE MANAGER'S OVERVIEW
8 INVESTMENT CHANGES
9 INVESTMENTS
11 FINANCIAL STATEMENTS

EMERGING MARKETS FUND 13 PERFORMANCE
14 FUND TALK: THE MANAGER'S OVERVIEW
16 INVESTMENT CHANGES
17 INVESTMENTS
23 FINANCIAL STATEMENTS

EUROPE FUND 25 PERFORMANCE
26 FUND TALK: THE MANAGER'S OVERVIEW
28 INVESTMENT CHANGES
29 INVESTMENTS
32 FINANCIAL STATEMENTS

EUROPE CAPITAL APPRECIATION FUND 34 PERFORMANCE
35 FUND TALK: THE MANAGER'S OVERVIEW
37 INVESTMENT CHANGES
38 INVESTMENTS
41 FINANCIAL STATEMENTS

FRANCE FUND 43 PERFORMANCE
44 FUND TALK: THE MANAGER'S OVERVIEW
46 INVESTMENT SUMMARY
47 INVESTMENTS
49 FINANCIAL STATEMENTS

GERMANY FUND 51 PERFORMANCE
52 FUND TALK: THE MANAGER'S OVERVIEW
54 INVESTMENT SUMMARY
55 INVESTMENTS
57 FINANCIAL STATEMENTS

HONG KONG AND CHINA FUND 59 PERFORMANCE
60 FUND TALK: THE MANAGER'S OVERVIEW
62 INVESTMENT SUMMARY
63 INVESTMENTS
65 FINANCIAL STATEMENTS

JAPAN FUND 67 PERFORMANCE
68 FUND TALK: THE MANAGER'S OVERVIEW
70 INVESTMENT CHANGES
71 INVESTMENTS
74 FINANCIAL STATEMENTS

JAPAN SMALL COMPANIES FUND 76 PERFORMANCE
77 FUND TALK: THE MANAGER'S OVERVIEW
79 INVESTMENT SUMMARY
80 INVESTMENTS
83 FINANCIAL STATEMENTS

LATIN AMERICA FUND 85 PERFORMANCE
86 FUND TALK: THE MANAGER'S OVERVIEW
88 INVESTMENT CHANGES
89 INVESTMENTS
92 FINANCIAL STATEMENTS

NORDIC FUND 94 PERFORMANCE
95 FUND TALK: THE MANAGER'S OVERVIEW
97 INVESTMENT SUMMARY
98 INVESTMENTS
100 FINANCIAL STATEMENTS

PACIFIC BASIN FUND 102 PERFORMANCE
103 FUND TALK: THE MANAGER'S OVERVIEW
105 INVESTMENT CHANGES
106 INVESTMENTS
110 FINANCIAL STATEMENTS

SOUTHEAST ASIA FUND 112 PERFORMANCE
113 FUND TALK: THE MANAGER'S OVERVIEW
115 INVESTMENT CHANGES
116 INVESTMENTS
119 FINANCIAL STATEMENTS

UNITED KINGDOM FUND 121 PERFORMANCE
122 FUND TALK: THE MANAGER'S OVERVIEW
124 INVESTMENT SUMMARY
125 INVESTMENTS
127 FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS 129 NOTES TO THE FINANCIAL STATEMENTS

</TABLE>

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL INFORMATION OF THE SHAREHOLDERS OF THE FUNDS. THIS REPORT IS
NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE FUNDS
UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY,
ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, FEDERAL
RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISKS,
INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
NEITHER THE FUNDS NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK. FOR MORE
INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES, CALL
1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST
OR SEND MONEY.
In a reversal from their mediocre performance during much of 1995, most
overseas stock markets enjoyed solid returns for the six-month period ended
April 30, 1996. Renewed economic growth, lower interest rates and
undervalued securities helped lift the Morgan Stanley Capital International
Europe, Australasia, Far East (EAFE) Index - which measures stock
performance in Europe, Australia and the Far East - to a 13.21% gain for
the period.
EUROPE: At the beginning of the period, the probability of European
monetary union under the Maastricht agreement weighed heavily on many
European exchanges. Additionally, slow economic growth and double-digit
unemployment in many European countries hurt the equity markets. However,
the markets quickly rebounded on the strength of undervalued stocks as well
as attractive cost-cutting and restructuring plans offered by several
high-profile corporations, helping the Morgan Stanley Capital International
Europe Index rise 8.54% during the period. Merger and acquisition activity
also flourished, as seen in the $30 billion mega-merger between
pharmaceutical giants Ciba-Geigy and Sandoz.
JAPAN AND THE FAR EAST: Many Asian stock markets posted strong returns in
the six months ended April 30, 1996. The Morgan Stanley Capital
International Far East Ex-Japan Free Index - a measure of Far East markets
excluding Japan - rose 17.10%, reversing the negative returns that haunted
them in 1995. Malaysia, Indonesia and the Philippines all posted top
returns. Foreign capital inflows surged into Asia as investors were drawn
to undervalued large-company stocks. Construction and development also
continued to flourish in the region, symbolized by the near-completion of
the tallest buildings in the world, the Petronas towers in downtown Kuala
Lumpur, Malaysia. A weak yen, astonishingly low interest rates, a
recovering economy and a variety of undervalued stocks aided the Japanese
stock market. The Morgan Stanley Capital International Japan Index (net
dividends) soared 18.08% in U.S. dollars. The Tokyo Stock Exchange TOPIX
Total Return Index, another measure of the Japanese market, posted a
six-month return of 18.87%.
EMERGING MARKETS: Renewed interest by foreign investors also played a key
role in turning emerging markets around from last year's negative levels,
and the Morgan Stanley Capital International Emerging Markets Free Index
posted a 13.32% return during the period. In Latin America, Brazil
benefited from the recent relative stability of its currency, controlled
inflation and ample government reserves. Argentina and Peru had relatively
strong stock markets, although Peru sustained a major economic downturn and
Argentina is currently mired in a recession. While Mexican stocks posted
strong returns, economic growth there was hobbled by a weak banking sector,
large corporate debts and the collapse of real - adjusted for inflation -
wages. South African mining stocks were helped by rising gold prices
earlier in the period, although those gains were given back due to
political and economic concerns. In Eastern Europe, two of the top emerging
markets were Poland and Hungary.
U.S. AND CANADA: Although rising interest rates added to an already clouded
corporate earnings outlook in the first quarter of 1996, U.S. stocks posted
healthy returns for the past six months, as the Standard & Poor's 500 Index
finished the period up 13.76%. Investors appeared to lose their appetite
for the blue-chip, multinational firms that drove the market in 1995. This
development was due in part to a stronger dollar, surging cash flows into
mutual funds and the higher valuations of large-capitalization stocks
relative to small-capitalization stocks. The Canadian market saw several
positive events after the defeat of a referendum on Quebec's secession in
October 1995, including good growth relative to the U.S. market, the
stability of the Canadian dollar, interest rate declines and cost-cutting
by governments at both the federal and provincial level. For the six-month
period, the Toronto Stock Exchange Composite 300 Index returned 15.25%.
BONDS: Bond markets worldwide turned in mixed results during the six months
ended April 30, 1996. In the U.S., yields rose - and prices fell - on most
fixed-income investments, as indications of a pick-up in economic growth
stirred inflation fears. Although the Federal Reserve Board lowered
short-term interest rates in January, it did not continue the easing trend
that the market had anticipated. Although some foreign markets posted solid
positive returns, the Salomon Brothers Non-U.S. World Government Bond Index
- - which tracks the performance of government bonds in 13 developed
countries excluding the U.S. - posted a -0.18% return for the six months
ended April 30, 1996. This return was influenced by interest rate increases
in the U.S., the strength of the U.S. dollar, and strong weightings in both
Germany - where the Bundesbank lowered interest rates, but not enough to
spark a significant rally - and Japan - where the recent economic rebound
created anxiety that interest rates would bounce back from low levels.
Bonds in emerging markets soundly beat their developed counterparts during
the period, with the J.P. Morgan Emerging Markets Bond Index returning
21.34% for the six months ended April 30, 1996.

S&P 500 EAFE
* YEAR TO DATE THROUGH APRIL 30, 1996.
Row: 1, Col: 1, Value: 22.38
Row: 1, Col: 2, Value: 23.69
Row: 2, Col: 1, Value: 6.1
Row: 2, Col: 2, Value: 7.38
Row: 3, Col: 1, Value: 31.57
Row: 3, Col: 2, Value: 56.16
Row: 4, Col: 1, Value: 18.56
Row: 4, Col: 2, Value: 69.44000000000001
Row: 5, Col: 1, Value: 5.1
Row: 5, Col: 2, Value: 24.63
Row: 6, Col: 1, Value: 16.61
Row: 6, Col: 2, Value: 28.27
Row: 7, Col: 1, Value: 31.69
Row: 7, Col: 2, Value: 10.53
Row: 8, Col: 1, Value: -3.1
Row: 8, Col: 2, Value: -23.45
Row: 9, Col: 1, Value: 30.47
Row: 9, Col: 2, Value: 12.13
Row: 10, Col: 1, Value: 7.619999999999999
Row: 10, Col: 2, Value: -12.17
Row: 11, Col: 1, Value: 10.08
Row: 11, Col: 2, Value: 32.56
Row: 12, Col: 1, Value: -2.56
Row: 12, Col: 2, Value: 7.89
Row: 13, Col: 1, Value: 37.58
Row: 13, Col: 2, Value: 11.21
Row: 14, Col: 1, Value: 6.92
Row: 14, Col: 2, Value: 5.88
%
CANADA
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (income) and capital gains (the profits the
fund earns when it sells securities that have grown in value). The fund has
a 3% sales charge. If Fidelity had not reimbursed certain fund expenses,
the past 1 year, 5 years, and life of fund total returns would have been
lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED PAST 6 PAST 1 PAST 5 LIFE OF
APRIL 30, 1996 MONTHS YEAR YEARS FUND

CANADA 15.54% 19.56% 38.67% 147.04%

CANADA (INCL. 3% SALES CHARGE) 12.08% 15.98% 34.51% 139.63%

Toronto Stock Exchange 15.25% 22.51% 44.43% 119.58%
Composite 300 Index

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, five years, or
since the fund started on November 17, 1987. For example, if you invested
$1,000 in a fund that had a 5% return over the past year, the value of your
investment would be $1,050. You can compare the fund's returns to the
performance of the Toronto Stock Exchange Composite 300 Index - a broad
measure of the performance of the Canadian stock market. This index
includes reinvested dividends and capital gains, if any, and excludes the
effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED PAST 1 PAST 5 LIFE OF
APRIL 30, 1996 YEAR YEARS FUND

CANADA 19.56% 6.76% 11.28%

CANADA (INCL. 3% SALES CHARGE) 15.98% 6.11% 10.88%

Toronto Stock Exchange 22.51% 7.63% 9.74%
Composite 300 Index

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
IMAHDR PRASUN SHR__CHT 19960430 19960524 170330 S00000000000001
Canada Toronto Stock Exchange
00309 DR001
1987/11/17 9700.00 10000.00
1987/11/30 9767.90 10159.91
1987/12/31 10446.90 10902.20
1988/01/31 10340.20 10766.12
1988/02/29 11048.30 11455.09
1988/03/31 11737.00 12118.74
1988/04/30 12008.60 12276.06
1988/05/31 11436.30 11954.61
1988/06/30 12319.00 12914.95
1988/07/31 12144.40 12770.34
1988/08/31 11562.40 12147.56
1988/09/30 11804.90 12408.94
1988/10/31 12357.80 12761.49
1988/11/30 12212.30 12838.17
1988/12/31 12480.81 13196.56
1989/01/31 13422.57 14222.20
1989/02/28 13045.87 13890.22
1989/03/31 13263.96 14036.78
1989/04/30 13531.62 14355.44
1989/05/31 13987.63 14392.34
1989/06/30 14661.73 14855.07
1989/07/31 15553.93 15900.00
1989/08/31 15633.23 16157.57
1989/09/30 15534.10 15932.92
1989/10/31 15316.01 15960.00
1989/11/30 15405.23 16207.21
1989/12/31 15849.10 16485.03
1990/01/31 14563.76 15032.84
1990/02/28 14646.68 14930.11
1990/03/31 14895.46 15093.60
1990/04/30 14180.23 13939.41
1990/05/31 15113.14 14894.22
1990/06/30 15465.57 14917.50
1990/07/31 15589.96 15170.55
1990/08/31 14688.15 14244.12
1990/09/30 14449.74 13522.93
1990/10/31 14066.21 13082.07
1990/11/30 14522.30 13448.40
1990/12/31 14978.60 14028.62
1991/01/31 15045.02 14085.97
1991/02/28 16428.85 15109.86
1991/03/31 17148.44 15222.57
1991/04/30 17281.29 15203.81
1991/05/31 18045.17 15723.75
1991/06/30 18067.31 15483.78
1991/07/31 18011.95 15706.41
1991/08/31 17856.97 15784.70
1991/09/30 17259.15 15390.08
1991/10/31 18023.03 16127.28
1991/11/30 17347.72 15701.06
1991/12/31 17627.42 15774.02
1992/01/31 17945.14 15913.63
1992/02/29 18051.04 15788.30
1992/03/31 17545.05 15012.42
1992/04/30 17333.24 14759.32
1992/05/31 17486.21 14790.80
1992/06/30 17392.07 14908.57
1992/07/31 17839.23 15363.59
1992/08/31 17568.58 15082.56
1992/09/30 16815.48 14074.27
1992/10/31 16744.87 14340.45
1992/11/30 16697.80 13619.11
1992/12/31 17121.47 14136.15
1993/01/31 17027.21 13995.03
1993/02/28 18087.72 14854.14
1993/03/31 19077.54 15456.65
1993/04/30 19572.45 16116.48
1993/05/31 19843.47 16569.77
1993/06/30 20856.85 16833.20
1993/07/31 20102.71 16817.33
1993/08/31 20609.40 17117.80
1993/09/30 19596.02 16383.72
1993/10/31 20998.26 17665.94
1993/11/30 20515.13 17192.85
1993/12/31 21482.47 18016.96
1994/01/31 22427.27 18892.01
1994/02/28 21470.66 18105.20
1994/03/31 20679.39 17343.76
1994/04/30 20525.86 17117.74
1994/05/31 20620.34 17394.54
1994/06/30 19486.57 16229.92
1994/07/31 19864.49 16821.43
1994/08/31 20608.53 17748.84
1994/09/30 20714.82 18170.07
1994/10/31 20289.65 17794.46
1994/11/30 18813.40 16727.05
1994/12/31 18907.95 16957.49
1995/01/31 17584.40 16119.77
1995/02/28 18305.26 16786.00
1995/03/31 19451.56 17497.07
1995/04/30 20042.43 17923.40
1995/05/31 20668.76 18482.09
1995/06/30 20952.38 18834.82
1995/07/31 21673.24 19342.43
1995/08/31 21401.44 19243.97
1995/09/30 21708.69 19383.92
1995/10/31 20739.66 19052.21
1995/11/30 21590.52 19726.25
1995/12/31 22574.56 19959.52
1996/01/31 22954.36 20910.61
1996/02/29 23156.13 20846.27
1996/03/31 23512.19 21236.57
1996/04/30 23963.21 21958.20
IMATRL PRASUN SHR__CHT 19960430 19960524 170334 R00000000000105

Let's say you invested $10,000 in Fidelity Canada Fund on November 17,
1987, when the fund started, and paid the 3% sales charge. By April 30,
1996, the value of your investment would have grown to $23,963 - a 139.63%
increase on your initial investment. That compares to $10,000 invested in
the Toronto Stock Exchange Composite 300 Index, which would have grown to
$21,958 over the same period - a 119.58% increase.

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

NOTE TO SHAREHOLDERS: On March 26, 1996, Thomas Sweeney (right photo)
became manager of Fidelity Canada Fund. The following is an interview with
George Domolky, who managed the fund during much of the period, followed by
remarks by Tom Sweeney regarding changes in the fund, his investment style
and his outlook.
Q. GEORGE, HOW HAS THE FUND PERFORMED?
G.D. For the six months ended April 30, 1996, the fund had a total return
of 15.54%. That beat the 15.25% return posted by the Toronto Stock Exchange
Composite 300 Index (TSE 300) over the same period. For the 12 months ended
April 30, 1996, the fund returned 19.56%, while the TSE 300 returned
22.51%.
Q. WHAT HELPED THE FUND'S PERFORMANCE EDGE THE TSE 300 OVER THE PAST SIX
MONTHS?
G.D. There were several reasons. First, the fund had more invested in
energy stocks than the index, and they performed well. Low inventory
levels, combined with a long and cold winter helped Canadian natural
resources producers, especially those that supply natural gas, such as
Renaissance Energy and Northstar Energy. In addition, the fund benefited
from the solid performance of its gold and base metal investments. These
stocks were helped by the strong economic environment in North America,
especially in the U.S. Further, the fund had more invested in Canadian
mutual fund stocks than was represented in the index. These companies
posted solid growth due to the increasing interest in mutual funds in
Canada, as well as from the improvement in the Canadian markets after the
referendum calling for the secession of Quebec was voted down at the end of
October. Finally, some special situations helped the fund, such as its
investment in BCE Mobile Communications, a cellular communications company
that investors recognized was undervalued relative to its earnings
potential. And Nowsco Well Services, a significant value play of the fund,
doubled in price as a result of a takeover offer from a U.S. company.
Q. AT THE SAME TIME, THERE MUST HAVE BEEN INVESTMENTS THAT DIDN'T TURN OUT
AS WELL AS YOU WOULD HAVE LIKED.
G.D. I'd say the main disappointment of the period was, in retrospect, that
the fund kept a relatively light weighting in financial stocks. That sector
performed better than I expected.
Q. LET'S TALK ABOUT THE CONDITION OF THE CANADIAN ECONOMY OVER THE PAST SIX
MONTHS . . .
G.D. The Canadian economy was in a recovery phase over the period. After
the Quebec referendum, there were several positive events. The Canadian
market consolidated and showed good growth relative to the U.S. market. The
Canadian dollar stabilized, interest rates declined and governments at both
the federal and provincial levels turned their attention to cutting
expenditures. In sum, the country showed stability and real growth.
Q. TURNING TO YOU TOM, IT APPEARS THAT YOU'VE INCREASED THE FUND'S
INVESTMENTS IN FINANCE STOCKS SINCE TAKING OVER THE FUND.
T.S. That's right. I've done so mainly because I found Canadian bank stocks
to be selling fairly cheaply compared to U.S. banks. In addition, there has
been some talk about relaxing regulations related to bank ownership
restrictions, and, if this change comes about, it should help bank stocks.
On top of that, if the natural resources sector in Canada perks up, banks
should be helped because there should be fewer bad loans, and foreigners
could be attracted to invest more in the country.
Q. WHAT'S YOUR FEELING ABOUT THE DIRECTION OF NATURAL RESOURCES IN CANADA?
T.S. Let me start by talking about precious metals. I've bought into gold
mining companies where I feel reserves are going to be increased more than
consensus estimates. In this case, I'm looking for companies that can
increase production, rather than making a bet on the direction of the price
of gold. At the same time, I'm very positive about companies with exposure
to silver. Demand has been greater than supply for about six years, the
price is much cheaper than it was 20 years ago when adjusted for inflation,
and inventories have decreased markedly. If these trends continue, I
believe the price of silver should rise. There aren't many companies that
are pure silver producers, but I've found a few, including Pan American
Silver, one of the fund's largest holdings at the end of the period.
Although I'm looking for companies that are increasing production from new
silver mines, most silver is produced as a by-product created when mining
for other metals, such as gold. Additional silver is recovered from photo
film, or from the melt-down of coins or silverware. When you add up the
supply provided by new mine production and recovery, supply hasn't really
changed over the past 20 years. But demand has risen pretty steadily for
uses such as photography, jewelry, silverware, electronics and coinage.
Developing countries also have added to demand, but the price remains low.
I feel it's only a question of time before the price of silver rises. These
are the kinds of opportunities I'm looking for, by examining supply and
demand.
Q. DO YOU SEE SIMILAR OPPORTUNITIES IN THE OIL INDUSTRY?
T.S. Not at the moment. You'll notice that I've decreased the fund's energy
investments, from 28.1% at the beginning of the period to 18.3% as of April
30. That's still a bit more than is represented in the TSE 300 because
energy shares are trading near the lower end of historical valuations. I've
sold off many stocks in this area because I'm concerned about the effects
of Iraq coming back into the world oil market through an agreement with the
United Nations. There's a good chance that will happen and, if it does, it
may cause both the price of oil and energy stocks to go down. At that
point, I'll look to add to the fund's energy holdings because they should
be cheap and, beyond this short-term concern over added supply, it appears
that demand for gasoline and crude oil should continue to show solid
growth.
Q. YOU'VE ADDED TO THE FUND'S STAKE IN UTILITIES. WHAT'S THE ATTRACTION OF
THIS SECTOR?
T.S. This is one area I've bought into with the proceeds from my oil sales,
adding to the fund's largest investment at the end of the period, BCE/Bell
Canada. Business prospects for the sector appear to be quite solid, returns
have been good and BCE/Bell Canada's management has been focused on
improving returns. In addition, the stock is selling at cheaper valuations
than similar U.S. companies.
Q. WHAT'S YOUR OUTLOOK?
T.S. Looking over the long term, I'm fairly optimistic. The natural
resources sector - a heavy component of the fund and a driver of the
Canadian economy and market - has underperformed its U.S. counterpart for
some time. However, the supply and demand characteristics of a number of
sectors are favorable going forward. Looking at the fund sector by sector,
I see a number of areas that have been depressed for a while, including oil
and gas, as well as silver, because there hasn't been enough capital
expenditure to meet growing demand and because prices have been low. I
believe it is only a question of time before these sectors reap the
benefits of added demand and limited supply. Over the short term, I'm
somewhat less optimistic because I'm concerned about the re-introduction of
Iraqi oil into the international energy market. My strategy over the next
year or two, though, will be to focus on those sectors where supply and
demand appear to be tightening.

FUND FACTS
GOAL: long term growth of capital by
investing mainly in equity securities of
Canadian issuers
START DATE: November 17, 1987
TRADING SYMBOL: FICDX
SIZE: as of April 30, 1996, more than
$134 million
MANAGER: Thomas Sweeney, since March
1996; manager, Fidelity Capital Appreciation
Fund, 1986-1996; Fidelity Select Paper and
Forest Products Portfolio, 1986; joined Fidelity
in 1985
(checkmark)
TOM SWEENEY ON HIS INVESTMENT APPROACH:
"My investment approach is fairly simple. I invest
for the most part at the sector level. I don't tend to
examine big-picture economic trends or focus
exclusively on investing on a company-by-company
basis. Instead, I look for sectors that are depressed,
that are not making a lot of money or where there
isn't much capital expenditure happening. My theory
is that these sectors, in time, will rebound. I look at
sector data, examining such things as production,
consumption and inventories. If excess inventory, for
example, has kept pricing down, but is starting to be
used up, I become interested. Over time, sectors in
this type of situation tend to recover. However, at
times, I also can find stocks that appear promising in
sectors that I view neutrally, such as goldmining. In
these cases, I focus on finding companies with high
probabilities of significant additions to reserves that
the market hasn't given proper credit for."
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGERS
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGERS' VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
CANADA
INVESTMENT CHANGES

GEOGRAPHIC DIVERSIFICATION
AS OF APRIL 30, 1996

United States 20.2%
Row: 1, Col: 1, Value: 20.2
Row: 1, Col: 2, Value: 79.8
Canada 79.8%
AS OF OCTOBER 31, 1995
United States 8.5%
Row: 1, Col: 1, Value: 8.5
Row: 1, Col: 2, Value: 91.5
Canada 91.5%
ASSET ALLOCATION
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Stocks 90.0 96.8

Bonds 0.0 0.9

Short-term investments 10.0 2.3

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

BCE, Inc. 4.7 3.5
(Telephone Services)

Pan American Silver Corp. 4.2 0.2
(Precious Metals)

Renaissance Energy Ltd. 4.0 6.4
(Oil & Gas)

Torstar Corp. Class B 4.0 2.8
(Publishing)

Northstar Energy Corp. 3.9 2.9
(Oil & Gas)

Nova Corp. 3.7 0.0
(Gas)

Alcan Aluminium Ltd. 3.1 3.7
(Metals & Mining)

Agnico Eagle Mines Ltd. 2.8 1.4
(Precious Metals)

Trimark Financial Corp. 2.7 2.6
(Securities Industry)

Bank of Nova Scotia Halifax 2.6 0.0
(Banks)

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

Energy 18.3 28.1

Finance 17.8 8.6

Precious Metals 14.8 9.2

Utilities 10.9 3.5

Basic Industries 9.2 16.9

Media & Leisure 7.0 3.7

Industrial Machinery & Equipment 3.7 4.2

Retail & Wholesale 3.2 2.1

Technology 1.8 1.6

Nondurables 1.5 5.2

CANADA
INVESTMENTS APRIL 30, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 90.0%
SHARES VALUE (NOTE 1)
BASIC INDUSTRIES - 9.2%
CHEMICALS & PLASTICS - 0.2%
AT Plastics, Inc. 30,000 $ 306,156
METALS & MINING - 9.0%
Alcan Aluminium Ltd. 129,500 4,116,846
Diamond Fields Resources, Inc. (a) 100,000 3,076,245
Falconbridge Ltd. 1st installment
receipt (d) 200,000 1,996,990
Inco Ltd. 1 34
South Crofty Holdings Ltd. (a) (c) 2,131,200 2,581,756
11,771,871
TOTAL BASIC INDUSTRIES 12,078,027
CONGLOMERATES - 0.2%
Brascan Ltd. Class A 13,400 263,661
CONSTRUCTION & REAL ESTATE - 0.1%
REAL ESTATE - 0.1%
Journey's End Corp. (a) 10,000 14,904
Trizec Corp. Ltd. (a) 17,300 116,218
Trizec Corp. Ltd. Class A (warrants) (a) 79,700 52,663
183,785
DURABLES - 1.5%
CONSUMER DURABLES - 1.3%
Unican Security Systems Ltd. Class B 110,000 1,736,353
TEXTILES & APPAREL - 0.2%
Dominion Textile, Inc. 42,500 218,421
TOTAL DURABLES 1,954,774
ENERGY - 18.3%
ENERGY SERVICES - 0.3%
Precision Drilling Class A (a) 21,700 406,263
OIL & GAS - 18.0%
Amber Energy, Inc. (a) 20,000 182,078
Beau Canada Exploration Ltd. (a) 400,000 602,034
Canadian Natural Resources Ltd. (a) 125,000 2,115,378
Canada Occidental Petroleum Ltd. 11,100 383,026
Cimarron Petroleum Ltd. (a) 20,000 218,054
Elan Energy, Inc. (a) 100,000 991,153
Horsham Corp. 200,000 2,819,280
Morgan Hydrocarbons, Inc. (a) 300,000 836,974
Northstar Energy Corp. (a) 500,000 5,176,021
Parkland Industries Ltd. 150,000 897,544
Petro-Canada 1st installment receipt (e) 300,000 2,081,421
Renaissance Energy Ltd. (a) 200,000 5,278,808
Rio Alto Exploration Ltd. (a) 100,000 528,615
Rio Alto Exploration Ltd. (a) (b) 8,000 42,289
Total Petroleum (North America) Ltd. 125,000 1,518,850
23,671,525
TOTAL ENERGY 24,077,788
FINANCE - 17.8%
BANKS - 13.9%
Bank of Montreal 100,000 2,400,793
Bank of Nova Scotia Halifax (a) 150,000 3,397,452
Canadian Imperial Bank of Commerce 104,200 3,236,049
National Bank of Canada 400,000 3,245,108
Royal Bank of Canada 125,000 2,959,693
Toronto Dominion Bank 175,000 3,032,194
18,271,289

SHARES VALUE (NOTE 1)
INSURANCE - 1.2%
Acceptance Insurance Co., Inc. (a) 100,000 $ 1,562,500
SECURITIES INDUSTRY - 2.7%
Trimark Financial Corp. 100,000 3,549,796
TOTAL FINANCE 23,383,585
INDUSTRIAL MACHINERY & EQUIPMENT - 3.7%
ELECTRICAL EQUIPMENT - 2.5%
Genlyte Group, Inc. (a) 400,000 3,200,000
POLLUTION CONTROL - 1.2%
Laidlaw, Inc.:
Class A 50,000 523,109
Class B 100,000 1,049,888
1,572,997
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 4,772,997
MEDIA & LEISURE - 7.0%
BROADCASTING - 1.4%
Baton Broadcasting (a) 18,700 140,725
Cogeco, Inc. 65,000 326,897
Cogeco Cable, Inc. 9,400 56,246
Shaw Communications Inc. Class B (b) 139,500 1,024,191
Videotron Group Ltd. 36,800 325,568
1,873,627
PUBLISHING - 5.6%
Hollinger Inc. 50,000 416,651
Thomson Corp. 100,000 1,662,935
Torstar Corp. Class B 300,000 5,231,086
7,310,672
TOTAL MEDIA & LEISURE 9,184,299
NONDURABLES - 1.5%
AGRICULTURE - 0.0%
Saskatchewan Wheat Pool
Class B (non-vtg.) 400 4,141
FOODS - 1.5%
Weston George Ltd. 55,000 2,008,920
TOTAL NONDURABLES 2,013,061
PRECIOUS METALS - 14.8%
Agnico Eagle Mines Ltd. 200,000 3,663,595
Bre-X Minerals Ltd. (a) 10,000 1,468,375
Euro-Nevada Mining Corp. 75,000 2,808,267
Franco Nevada Mining Corp. 20,000 1,188,649
Golden Star Resources Ltd. (a) 20,000 295,143
Greenstone Resources Ltd. (a) 50,000 475,386
Pan American Silver Corp. (a) 600,000 5,506,406
Placer Dome, Inc. 75,000 2,086,928
TVI Pacific, Inc. (a) 250,000 431,335
TVX Gold, Inc. (a) 100,000 792,922
War Eagle Mining, Inc. (a) 300,000 671,782
19,388,788
RETAIL & WHOLESALE - 3.2%
GROCERY STORES - 0.7%
Provigo, Inc. 150,000 930,583
RETAIL & WHOLESALE, MISCELLANEOUS - 2.5%
Hancock Fabrics, Inc. 300,000 3,300,000
TOTAL RETAIL & WHOLESALE 4,230,583
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
TECHNOLOGY - 1.8%
COMMUNICATIONS EQUIPMENT - 0.0%
Northern Telecom Ltd. 1 $ 51
COMPUTER SERVICES & SOFTWARE - 0.2%
Systems Xcellence, Inc. (a) 100,000 220,256
ELECTRONIC INSTRUMENTS - 1.6%
Medar, Inc. (a) 200,000 2,100,000
TOTAL TECHNOLOGY 2,320,307
UTILITIES - 10.9%
ELECTRIC UTILITY - 2.5%
Centerior Energy Corp. 100,000 687,500
Niagara Mohawk Power Corp. 100,000 750,000
Ohio Edison Co. 20,000 417,500
Tucson Electric Power Co. 500,000 1,437,500
3,292,500
GAS - 3.7%
Nova Corp. 500,001 4,845,653
TELEPHONE SERVICES - 4.7%
BCE, Inc. (a) 157,100 6,176,502
TOTAL UTILITIES 14,314,655
TOTAL COMMON STOCKS
(Cost $103,630,738) 118,166,310
REPURCHASE AGREEMENTS - 10.0%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.33%, dated
4/30/96 due 5/1/96 $ 13,130,944 13,129,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $116,759,738) $ 131,295,310
CURRENCY ABBREVIATIONS
CAD - Canadian dollar
LEGEND
(a) Non-income producing
(b) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $1,066,480 or 0.8% of net
assets.
(c) An affiliated company is a company in which the fund has ownership of
at least 5% of the voting securities. Transactions with companies which
are or were affiliates are as follows:
PURCHASES SALES DIVIDEND MARKET
AFFILIATE COST COST INCOME VALUE
Exco Technologies Ltd. $ - $ 924,191 $ - $ -
South Crofty Holdings Ltd. 161,404 - - 2,581,756
TOTALS $ 161,404 $ 924,191 $ - $ 2,581,756
(d) Purchased on an installment basis. Market value reflects only those
payments made through April 30, 1996. The remaining installments
aggregating CAD 3,800,000 are due July 31, 1996 and January 31, 1997.
(e) Purchased on an installment basis. Market value reflects only those
payments made through April 30, 1996. The remaining installments
aggregating CAD 2,550,000 are due September 23, 1996 and March 24, 1997.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $91,774,557and $289,816,854, respectively.
The fund placed a portion of its portfolio transactions with brokerage
firms which are affiliates of FMR. The commissions paid to these affiliated
firms were $38,203 for the period.
The fund participated in the bank borrowing program. The maximum loan and
the average daily loan balances during the period for which loans were
outstanding amounted to $14,684,000 and $4,474,581, respectively. The
weighted average interest rate was 6.3%. (see Note 6 of Notes to Financial
Statements).
INCOME TAX INFORMATION
At April 30, 1996, the aggregate cost of investment securities for income
tax purposes was $116,777,573. Net unrealized appreciation aggregated
$14,517,737, of which $16,674,465 related to appreciated investment
securities and $2,156,728 related to depreciated investment securities.
At October 31, 1995, the fund had a capital loss carryforward of
approximately $10,602,000 of which $5,787,000 and $4,815,000 will expire on
October 31, 2002 and 2003, respectively.
CANADA
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996 (UNAUDITED)

ASSETS

Investment in $ 131,295,310
securities, at
value
(including
repurchase
agreements
of
$13,129,000)
(cost
$116,759,738
) - See
accompanyin
g schedule

Cash 384

Receivable for 5,964,115
investments
sold

Receivable for 214,092
fund shares
sold

Dividends 120,369
receivable

Redemption 189
fees
receivable

TOTAL ASSETS 137,594,459

LIABILITIES

Payable for $ 1,831,444
investments
purchased

Payable for 797,975
fund shares
redeemed

Accrued 47,264
management
fee

Other payables 76,370
and
accrued
expenses

TOTAL 2,753,053
LIABILITIES

NET ASSETS $ 134,841,406

Net Assets
consist of:

Paid in capital $ 96,780,663

Undistributed 154,133
net
investment
income

Accumulated 23,371,042
undistributed
net realized
gain (loss) on
investments
and foreign
currency
transactions

Net unrealized 14,535,568
appreciation
(depreciation
) on
investments
and assets
and liabilities
in
foreign
currencies

NET ASSETS, for $ 134,841,406
6,680,005
shares
outstanding

NET ASSET $20.19
VALUE and
redemption
price per
share
($134,841,40
6 (divided by)
6,680,005
shares)

Maximum $20.81
offering price
per share
(100/97.00 of
$20.19)

STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)

INVESTMENT $ 977,172
INCOME
Dividends

Interest 184,973

1,162,145

Less foreign (132,785
taxes )
withheld

TOTAL 1,029,360
INCOME

EXPENSES

Management $ 632,943
fee
Basic fee

Performance (221,615
adjustment )

Transfer agent 304,987
fees

Accounting 57,753
fees and
expenses

Non-interested 421
trustees'
compensatio
n

Custodian fees 21,566
and
expenses

Registration 15,406
fees

Audit 19,969

Legal 1,458

Interest 24,090

Miscellaneous 4,275

Total 861,253
expenses
before
reductions

Expense (10,758 850,495
reductions )

NET 178,865
INVESTMENT
INCOME

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

Investment 34,098,021
securities
(including
realized loss
of $113,527
on sales of
investments
in affiliated
issuers)

Foreign (3,114 34,094,907
currency )
transactions

Change in net
unrealized
appreciation
(depreciation
) on:

Investment (7,762,932
securities )

Assets and (1,574 (7,764,506
liabilities in ) )
foreign
currencies

NET GAIN (LOSS) 26,330,401

NET INCREASE $ 26,509,266
(DECREASE)
IN NET ASSETS
RESULTING
FROM
OPERATIONS

OTHER $ 53,408
INFORMATION
Sales
charges paid
to FDC

Deferred $ 4,684
sales
charges
withheld
by FDC

Expense $ 9,522
reductions
Directed
brokerage
arrangements
.

Transfer 1,236
agent
interest
credits

$ 10,758

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS SIX MONTHS YEAR ENDED
ENDED OCTOBER 31,
APRIL 30, 1996 1995
(UNAUDITED)

Operations $ 178,865 $ 920,357
Net
investment
income

Net realized 34,094,907 (4,225,424)
gain (loss)

Change in (7,764,506) 10,769,055
net
unrealized
appreciation
(depreciation
)

NET INCREASE 26,509,266 7,463,988
(DECREASE)
IN NET
ASSETS
RESULTING
FROM
OPERATIONS

Distributions to (772,736) (211,418)
shareholders
from net
investment
income

Share 21,802,873 261,903,643
transactions
Net proceeds
from sales of
shares

Reinvestmen 759,773 205,156
t of
distributions

Cost of (240,322,941) (310,934,479)
shares
redeemed

Redemption 102,153 6,103
fees

NET INCREASE (217,658,142) (48,819,577)
(DECREASE)
IN NET
ASSETS
RESULTING
FROM SHARE
TRANSACTIO
NS

TOTAL (191,921,612) (41,567,007)
INCREASE
(DECREASE)
IN NET ASSETS

NET ASSETS

Beginning of 326,763,018 368,330,025
period

End of period $ 134,841,406 $ 326,763,018
(including
undistribute
d net
investment
income of
$154,133
and
$748,004,
respectivel
y)

OTHER
INFORMATION
Shares

Sold 1,142,042 15,725,874

Issued in 41,292 12,903
reinvestment
of
distributions

Redeemed (13,125,000) (18,554,447)

Net increase (11,941,666) (2,815,670)
(decrease)

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

</TABLE>

FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED OCTOBER 31,
ENDED
APRIL 30, 1996

SELECTED PER-SHARE DATA (UNAUDITED) 1995 1994 E 1993 1992 1991

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Net asset $ 17.55 $ 17.18 $ 17.82 $ 14.23 $ 16.28 $ 13.57
value,
beginning of
period

Income from
Investment
Operations

Net .06 .05 - (.15) (.02) D .03 D
investment
income (loss)

Net realized 2.63 .33 (.60) 3.76 (1.11) 3.59
and
unrealized
gain (loss)

Total from 2.69 .38 (.60) 3.61 (1.13) 3.62
investment
operations

Less (.08) (.01) - (.02) - (.06)
Distributions
From net
investment
income

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

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

Total (.08) (.01) (.04) (.02) (.92) (.91)
distributions

Redemption .03 - - - - -
fees added to
paid in
capital

Net asset $ 20.19 $ 17.55 $ 17.18 $ 17.82 $ 14.23 $ 16.28
value, end of
period

TOTAL RETURN B, 15.54% 2.22% (3.37)% 25.40% (7.09)% 28.13%
C

RATIOS AND
SUPPLEMENT
AL DATA

Net assets, $ 134,841 $ 326,763 $ 368,330 $ 95,977 $ 21,701 $ 23,327
end of period
(000 omitted)

Ratio of 1.05% A 1.09% 1.57% 2.00% 2.00% F 2.01% F
expenses to
average net
assets

Ratio of 1.04% A, 1.08% 1.57% 2.00% 2.00% 2.01%
expenses to G G
average net
assets after
expense
reductions

Ratio of net .22% A .26% (.14)% (.66)% (.11)% .17%
investment
income to
average net
assets

Portfolio 111% A 75% 59% 131% 55% 68%
turnover rate

Average $ .0304
commission
rate H

</TABLE>

<TABLE>
<CAPTION>
<S> <C>
A ANNUALIZED B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN (SEE NOTE 7 OF NOTES TO FINANCIAL
STATEMENTS). C TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE
YEAR ARE NOT ANNUALIZED. D NET
INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING
DURING THE PERIOD. E EFFECTIVE NOVEMBER 1, 1993, THE FUND ADOPTED
STATEMENT OF POSITION 93-2,
"DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF
INCOME, CAPITAL GAIN, AND
RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES." AS A
RESULT, NET INVESTMENT INCOME PER
SHARE MAY REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO TAX
DIFFERENCES. F FMR 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. G FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S
EXPENSES (SEE NOTE 7 OF NOTES
TO FINANCIAL STATEMENTS). H FOR FISCAL YEARS BEGINNING ON OR AFTER
SEPTEMBER 1, 1995, A FUND IS
REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR
SECURITY TRADES ON WHICH
COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD
AND FUND TO FUND DEPENDING
ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING
PRACTICES AND COMMISSION RATE
STRUCTURES MAY DIFFER.

</TABLE>

EMERGING MARKETS
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (income) and capital gains (the profits the
fund earns when it sells securities that have grown in value). The fund has
a 3% sales charge.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED PAST 6 PAST 1 PAST 5 LIFE OF
APRIL 30, 1996 MONTHS YEAR YEARS FUND

EMERGING MARKETS 18.68% 27.62% 77.69% 89.27%

EMERGING MARKETS 15.12% 23.79% 72.36% 83.60%
(INCL. 3% SALES CHARGE)

Morgan Stanley Capital 13.32% 14.38% 130.00% 196.77%
International Emerging
Markets Free Index

Emerging Markets 14.09% 16.42% 77.80% 95.47%
Funds Average

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, five years, or
since the fund started on November 1, 1990. For example, if you invested
$1,000 in a fund that had a 5% return over the past year, the value of your
investment would be $1,050. You can compare the fund's returns to the
performance of the Morgan Stanley Capital International Emerging Markets
Free Index - a broad measure of the performance of stocks in developing
countries, weighted by each country's market capitalization (or the total
value of its outstanding shares). Mexico, Malaysia, Brazil, and Thailand
are most heavily weighted, and together account for over 60% of the index.
Keep in mind that before February 1992, the fund's objective was more
broadly defined, and did not focus specifically on emerging markets.
However, to measure how the fund's performance stacked up against its
peers, you can compare it to the emerging markets funds average, which
reflects the performance of 77 funds with similar objectives tracked by
Lipper Analytical Services over the past six months. These benchmarks
include reinvested dividends and capital gains, if any, and exclude the
effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED PAST 1 PAST 5 LIFE OF
APRIL 30, 1996 YEAR YEARS FUND

EMERGING MARKETS 27.62% 12.18% 12.30%

EMERGING MARKETS 23.79% 11.50% 11.68%
(INCL. 3% SALES CHARGE)

Morgan Stanley Capital 14.38% 18.13% 21.87%
International Emerging
Markets Free Index

Emerging Markets 16.42% 12.20% 12.96%
Funds Average

Let's say you invested $10,000 in Fidelity Emerging Markets Fund on
November 1, 1990, when the fund started, and paid the 3% sales charge. By
April 30, 1996, the value of your investment would have grown to $18,360 -
an 83.60% increase on your initial investment. That compares to $10,000
invested in the Morgan Stanley Capital International Emerging Markets Free
Index, which would have grown to $29,677 over the same period - a 196.77%
increase.

An interview with Richard Hazlewood, Portfolio Manager of Fidelity Emerging
Markets Fund
Q. HOW DID THE FUND PERFORM, RICHARD?
A. As of April 30, 1996, the fund had a total return of 18.68% for the past
six months and 27.62% for the past year. For the same periods, the Morgan
Stanley Capital International Emerging Markets Free Index posted a total
return of 13.32% and 14.38%. Additionally, the Lipper emerging markets
funds average was 14.09% for six months and 16.42% for the year.
Q. WHAT CONTRIBUTED TO THE FUND'S PERFORMANCE?
A. As shareholders who have been with the fund for some time know, the fund
generally outperforms in up markets and underperforms in down ones. I think
this has a lot to do with the breadth of stocks in the portfolio.
Therefore, when all types of emerging market stocks bottomed about a year
ago, the breadth of the fund's holdings allowed it to take advantage of the
general rebound in the emerging markets.
Q. WHAT IS THE ROLE OF THE GLOBAL LIQUIDITY CYCLE IN EMERGING MARKET
INVESTMENTS?
A. When interest rates rose in the U.S. in 1994, investors around the world
moved money into the U.S. to take advantage of the higher rates.
Conversely, as rates moved lower in the U.S., investors began to seek
higher returns in the emerging markets.
Q. WHAT CHANGES HAVE YOU MADE IN THE FUND DURING THE PERIOD?
A. I've tried to focus more on bank stocks. Over the past year, the fund
has had a significant position in Thai banks and they performed very well
and I was able to take some profits. Recently, I've focused on large banks
in Argentina, Mexico and Korea. I have found in many emerging countries
that the bigger the bank, the more scrutiny it receives from the country's
central-bank regulators and the more stable it tends to be. Additionally, I
thought many of the large bank stocks were undervalued by the market.
Therefore, with many large banks you have a reputable franchise trading at
inexpensive levels.
Q. CAN YOU GIVE SOME EXAMPLES?
A. Sure. Thai Military Bank and Krung Thai Bank are examples of the banks
that performed well over the past year. Some of the large banks that are
beginning to develop include Hong Leong Bank and Hong Leong Credit in
Malaysia, as well as Banco de Galicia in Argentina.
Q. WHAT'S BEEN THE STORY WITH MALAYSIA?
A. Malaysia has been a top performing market and the fund's large weighting
in the country relative to other emerging market mutual funds helped
performance greatly. About a year ago, many investors were focusing on
Malaysia's trade deficit as a reason not to buy equities in that country.
Fortunately, this was a classic case of people talking economics and not
stocks. In fact, I saw that corporate earnings were strong and, therefore,
it created a lot of attractive, undervalued stocks.
Q. SO WHAT STOCKS DID YOU FIND IN MALAYSIA?
A. The Hong Leong investments I discussed before have, in my opinion, one
of the most impressive managements in Asia and one that is committed to
steadily growing earnings. Another example is TA Enterprise, the country's
largest retail broker. This company is one way the fund was able to play
the resurgence of the Malaysian stock market.
Q. WHAT'S YOUR FEELING ON KOREAN EQUITIES?
A. I found that most of the biggest companies, such as Korea Electric Power
Corp., were the best ones to own. Korea Mobile Telecommunications (KMT) was
a large firm in the portfolio. In fact, KMT - which enjoys a virtual
monopoly in Korea - saw very strong revenue growth as its customer base
increased. Samsung Fire & Marine Insurance also performed well during the
period.
Q. TURNING TO LATIN AMERICA, WHAT'S HAPPENED THERE?
A. Many of the markets have started to turn up after a disastrous 1995. In
Brazil, the real - the currency - has stabilized, inflation remains
manageable and the government has built a large amount of reserves. The
fund's largest holding at the end of the period, Telebras, may benefit from
rising tariffs in Brazil and the modernization of the country's phone
system. In Mexico, economic growth has been slow; however, conglomerate
Grupo Carso, has been an attractive play in one of the country's few
growing sectors - exports.
Q. GIVEN THAT ARGENTINA HAS HAD ONE OF THE WORLD'S TOP PERFORMING STOCK
MARKETS IN THE PAST SIX MONTHS, HAVE YOU BOUGHT MORE ARGENTINE STOCKS?
A. Actually, I reduced the fund's Argentine position. In general, Argentina
has a very narrow market in contrast to the very broad and diversified
market in Brazil. Additionally, while Argentina did well in the early
1990s, the country is currently mired in a recession.
Q. WERE THERE ANY DISAPPOINTMENTS?
A. The Hong Kong-based construction and real estate development firm
Hopewell Holdings - a stock the fund owned once before - was disappointing.
I purchased the stock at the beginning of the period; however, its
financial situation deteriorated and I had to liquidate the fund's position
at a loss.
Q. WHAT'S YOUR OUTLOOK?
A. As I discussed before, the performance of the emerging markets depends
greatly on the interest rate situation in the U.S. If the U.S. becomes more
attractive relative to the emerging markets because of higher interest
rates, the fund's performance will be hurt. That said, however, I am
encouraged by the fact that even after such good returns recently, I
continue to find companies with attractive growth potential trading at
reasonable valuations.

FUND FACTS
GOAL: long-term growth of capital by
investing mainly in equity securities of
emerging market issuers which can be found
in regions such as Southeast Asia, Latin
America and Eastern Europe
START DATE: November 1, 1990
TRADING SYMBOL: FEMKX
SIZE: as of April 30, 1996, more than
$1.4 billion
MANAGER: Richard Hazlewood, since 1993;
assistant, Fidelity Low-Priced Stock Fund
and Fidelity Contrafund, 1992-93; analyst,
Japanese stocks, 1991-92; joined Fidelity in
1991
(checkmark)
RICHARD HAZLEWOOD ON WORKING THROUGH CURRENCY
DEVALUATIONS:
"With the currency devaluation in Mexico still fresh in
people's minds, it's important for international
investors to understand some of the factors that
can cause devaluation and to take steps to avoid
potential problem areas. Historically, countries with
high savings rates and a large amount of government
reserves tend not to undergo currency devaluations.
This is because these countries have the
resources necessary to defend their currency and
are not captive to the whims of international
currency traders.
"Malaysia and Brazil both have high savings rates
and large government reserves. As a result, their
currencies have a certain degree of stability. Mexico
and South Africa, however, do not meet these
criteria and, not surprisingly, they have had
devaluations in the recent past."
(solid bullet) The Kuala Lumpur Second Board in Malaysia was
the world's best performing stock index over the
past year with a return of 110.35%, according to
Bloomberg Business News.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
EMERGING MARKETS
INVESTMENT CHANGES

GEOGRAPHIC DIVERSIFICATION
AS OF APRIL 30, 1996
4.6.86.8
Thailand 12.4
%
Brazil 12.4
%
Row: 1, Col: 1, Value: 12.4
Row: 1, Col: 2, Value: 6.6
Row: 1, Col: 3, Value: 4.4
Row: 1, Col: 4, Value: 17.7
Row: 1, Col: 5, Value: 8.0
Row: 1, Col: 6, Value: 25.5
Row: 1, Col: 7, Value: 4.1
Row: 1, Col: 8, Value: 4.6
Row: 1, Col: 9, Value: 4.3
Row: 1, Col: 10, Value: 12.4
South Africa 6.6%
India 4.3%
Indonesia 4.6%
Philippines 4.4
%
Korea (South) 4.1%
Other 17.7
%
Malaysia 25.5%
Mexico 8.0%
AS OF OCTOBER 31, 1995

Brazil 9.0%
Thailand 17.2
%
Row: 1, Col: 1, Value: 17.2
Row: 1, Col: 2, Value: 4.9
Row: 1, Col: 3, Value: 22.8
Row: 1, Col: 4, Value: 5.2
Row: 1, Col: 5, Value: 20.6
Row: 1, Col: 6, Value: 5.1
Row: 1, Col: 7, Value: 5.8
Row: 1, Col: 8, Value: 4.2
Row: 1, Col: 9, Value: 5.2
Row: 1, Col: 10, Value: 9.0
Hong Kong 5.2%
India 4.2%
Philippines 4.9
%
Indonesia 5.8%
Korea (South) 5.1%
Other 22.8
%
Malaysia 20.6%
Mexico 5.2%
ASSET ALLOCATION
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Stocks 96.9 96.4

Bonds 0.4 1.1

Short-term investments 2.7 2.5

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

Telebras sponsored ADR 5.1 0.8
(Brazil, Telephone Services)

Industrial Finance Corp. (For. Reg.) 3.2 3.4
(Thailand, Credit & Other Finance)

Grupo Carso SA de CV Class A-1 3.2 1.8
(Mexico, Conglomerates)

Hong Leong Bank BHD 2.6 2.9
(Malaysia, Banks)

Thai Military Bank Ltd. (For. Reg.) 2.3 2.4
(Thailand, Banks)

TA Enterprise BHD 2.0 0.2
(Malaysia, Credit & Other Finance)

Krung Thai Bank Ltd. (For. Reg.) 1.8 2.5
(Thailand, Banks)

Hong Leong Credit BHD 1.7 1.5
(Malaysia, Credit & Other Finance)

Malaysian Resources Corp. BHD 1.7 0.4
(Malaysia, Real Estate)

YTL Corp. BHD 1.7 1.7
(Malaysia, Construction)

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

Finance 39.8 36.9

Utilities 12.3 10.4

Basic Industries 9.9 10.7

Construction & Real Estate 9.5 11.7

Nondurables 7.5 7.0

Holding Companies 5.8 4.7

Retail & Wholesale 3.1 3.7

Durables 2.7 3.0

Media & Leisure 2.5 1.8

Precious Metals 2.1 0.5

EMERGING MARKETS
INVESTMENTS APRIL 30, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 96.6%
SHARES VALUE (NOTE 1)
ARGENTINA - 2.5%
Banco de Galicia Y Buenos Aires
SA sponsored ADR representing
Class B shares 933,590 $ 21,939,365
Central Costanera SA ADR (b) 36,200 1,221,750
Disco SA sponsored ADR (a) 50,000 793,750
Perez Companc Class B 2,212,710 13,764,570
37,719,435
AUSTRALIA - 0.0%
Overseas & General Ltd. (a) 280,750 69,621
BANGLADESH - 0.1%
Advanced Chemical Industries 150,000 410,012
Bangladesh Lamps Ltd. 322 20,927
Beximco Pharmaceuticals Ltd. 392,680 848,565
Padma Textile Mills Ltd. 74,250 577,994
1,857,498
BERMUDA - 0.3%
AES China Generating Co. Class A (a) 10,000 97,500
Central European Media Class C (a) 21,000 601,125
Credicorp Ltd. 216,088 3,673,496
4,372,121
BRAZIL - 12.3%
Acesita Cia Acos Especiais
Itabira Ord. 307,785,906 1,328,004
Bradesco PN 1,878,098,903 21,205,423
Brahma (Cia Cervejaria):
ON (warrants) (a) 1,676,275 422,470
PN Class B (Pfd. Reg.) 22,049,373 10,602,904
PN (Pfd. Reg.) (warrants) (a) 1,297,021 65,377
PN (warrants) (a) 130,763 30,320
Brasmotor PN 5,048,100 1,374,048
Compania Paulista de Forca Luz Ord. 34,602,260 2,234,610
Coteminas PN 10,656,252 4,468,976
Eletrobras PN Class B 100,545,300 24,833,508
Itaubanco PN (Pfd. Reg.) 29,608,000 11,581,131
Itausa Investimentos Itau SA 2,843,900 1,949,546
Iven SA (a) 2,320,000 1,052,472
Karsten PN 1,451,638 19,171
Klabin Industria de Papel e Celulose PN 1,413,887 1,396,854
Lojas Americanas SA 165,754,800 3,843,298
Perdigao SA Comercio e Industria PDG 427,455 862
Perdigao SA Comercio e Industria
PDG (Pfd. shares) 9,292,745 16,769
Petrobras PN (Pfd. Reg.) 18,200,000 2,119,159
Serrana SA (a) 41,700 27,325
Souza Cruz Industria Comerico 893,600 6,981,602
Telebras sponsored ADR 1,425,900 77,176,838
Telesp PN (Pfd. Reg.) 44,247,308 7,895,330
Unibanco PN 77,128,829 3,296,802
Votorantim Celulose E Paper SA
(Pfd. Reg.) 47,768,505 905,337
184,828,136
CANADA - 0.0%
Bolivar Goldfields Ltd. (a) 51,750 62,690
CHILE - 0.9%
Banco Osorno y la Union SA Series A
sponsored ADR 189,300 2,863,163
Empresa Nacional de Electricidad SA
sponsored ADR 25,000 487,500
Enersis SA sponsored ADR 84,700 2,519,825

SHARES VALUE (NOTE 1)
Madeco SA ADR 39,400 $ 985,000
Provida SA sponsored ADR 189,700 4,339,388
Soc Quimica y Minera de Chile ADR 49,800 2,664,300
Vina Concha Stet y Toro SA
sponsored ADR 20,200 338,350
14,197,526
CHINA (PEOPLES REPUBLIC) - 0.6%
China First Pencil Co. Ltd. Class B (a)(d) 4,227,162 1,665,502
China Southern Glass Co. Ltd. Class B 100,000 43,952
Guangdong Electric Power Development
Co. Ltd. Class B (a) 1,170,000 642,799
Heilongjiang Electric Power Co. Ltd.
Class B 4,000,000 1,080,000
Huaneng Power International, Inc.
Class N sponsored ADR (a) 10,000 156,250
Qingling Motors Co. Ltd. Class H 1,500,000 489,613
Shandong Huaneng Power Development
Ltd. Class N sponsored ADR 10,170 94,073
Shanghai Diesel Engine Class B 1,048,801 597,817
Shanghai Friendship and Overseas
Chinese Co. Class B 909,000 436,320
Shanghai Hero Ltd. Class B (d) 3,314,480 1,067,263
Shanghai Industrial Sewing
Machine Corp. Class B 1,135,600 165,798
Shanghai New Asia Class B (a) 1,045,000 616,550
Shanghai Refrigerator Compressor Co.
Class B (a) 594,270 305,455
Shanghai Tyre & Rubber Class B 150,000 36,000
Shanghai Vacuum Electron Devices
Co. Ltd. (a) 6,187,778 1,509,818
Tsingtao Brewery Co. Ltd. 952,000 261,515
9,168,725
COLOMBIA - 1.0%
Banc Industrial Colombiano
sponsored ADR 113,000 2,217,625
Banco de Bogota 56,368 326,409
Banco de Colombia GDR (b) 732,500 5,860,000
Compania Nacional de Chocolates 130,000 1,089,402
Noel (Industria Alimenticias) 79,337 231,575
Suramericana de Seguros SA 270,000 4,982,815
14,707,826
CZECH REPUBLIC - 0.0%
Komercni Banka AS 1,400 109,422
GREECE - 0.8%
Alpha Credit Bank 142,000 7,111,663
Ergo Bank SA (Reg.) 50,000 2,517,454
Hellenic Bottling Co. SA 91,250 3,279,004
12,908,121
HONG KONG - 1.7%
Dah Sing Financial Holdings Ltd. 1,259,675 3,501,042
Dao Heng Bank Group Ltd. 102,000 390,294
First Pacific Bancshares Holdings Ltd. 7,250,000 2,507,045
Hualing Holdings Ltd. 1,000,000 131,856
International Bank of Asia Ltd. 2,710,000 1,707,829
JCG Holdings Ltd. 5,455,000 5,041,980
Kumagai Gumi 200,000 184,857
Liu Chong Hing Bank Ltd. 980,000 1,355,533
Liu Chong Hing Investment Ltd. 11,084,000 11,605,983
Magnum International Holdings Ltd. (a) 3,750,000 150,277
Magnum International Holdings Ltd.
(warrants) (a) 250,000 3,878
26,580,574
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
HUNGARY - 0.1%
OTP Bank GDR Unit (a) 10,000 $ 103,500
Pannonplast Plastic Industries PLC 25,000 693,951
797,451
INDIA - 4.3%
Alacrity Housing Ltd. 160,000 124,675
Apollo Hospitals Enterprises Ltd. 100,000 103,896
Bajaj Auto 106,300 2,675,140
Bharti Telecom Ltd. 14,000 35,960
Bharat Heavy Electricals Ltd. 1,000,000 5,252,525
CESC Ltd. GDR 26,000 85,800
Chemplast Sanmar Ltd. (b) 315,000 1,200,000
Core Healthcare Ltd. GDR 348,000 870,000
Cosmo Films Ltd. 20,275 74,898
Crompton Greaves Ltd. 300,000 2,077,922
E.I.D.-Parry GDR 50,000 130,000
Finolex Cables Ltd.:
GDR 55,000 419,650
GDR (b) 175,000 1,335,250
Great Eastern Shipping Co. Ltd. 600,000 805,195
Great Eastern Shipping Co. Ltd. GDR 122,700 828,225
Gujarat Ambuja Cement Ltd. GDR 315,121 3,545,111
HDFC Bank Ltd. (a) 500 519
Himachal Futuristic Communications Ltd. 20,000 22,511
Housing Development Finance Corp. Ltd. 61,500 5,360,983
Indian Rayon & Industries, Inc. GDR 85,000 1,317,500
Industrial Credit & Investments
Corp. Ltd. (a) 3,631,550 11,325,815
Industrial Development Bank of India 365,000 1,260,069
JCT Electronics Ltd. 50,000 41,847
JK Corp. Ltd.:
GDR 75,000 225,000
GDR (b) 250,000 750,000
Larsen and Toubro Ltd. 7,400 57,939
Mahanagar Telephone Nigam Ltd. (a) 531,100 3,252,826
Mahindra & Mahindra Ltd. GDR 83,333 833,330
Maral Overseas Ltd. 405,000 327,273
Mukand Ltd. 95,000 509,957
Nicholas Piramal India Ltd. 25,000 211,039
Oriental Bank of Commerce (a) 122,000 272,432
Prime Securities 300,000 320,346
Reliance Industries Ltd. 744,000 5,593,420
Ranbaxy Laboratories Ltd. 10,250 194,436
SCICI Ltd. 811,000 1,027,890
SCICI Ltd. (New) 117,100 139,867
Shriram Industrial Enterprises Ltd.
GDR (a)(b) 105,600 462,528
State Bank Of India 1,090,000 9,088,099
Tata Electric Companies:
GDR 1,000 480,000
GDR (b) 1,200 576,000
Tata Engineering & Locomotive Ltd. 11,130 141,609
Unitech Ltd. 254,350 734,055
Zee Telefilms Ltd. 88,300 330,795
64,422,332
INDONESIA - 4.6%
APAC Centertex Corp. PT (For. Reg.) (a)(d) 7,784,500 9,026,476
Asahimas Flat Glass PT (a)(b) 1,000,000 1,223,964
Astra International PT (For. Reg.) 3,337,500 4,944,975
Bank Bali PT:
(For. Reg.) 175,000 450,934
(For. Reg.) (warrants) (a) 100,000 66,566
Bank Dagang Nasional Indonesia PT 6,200,000 6,190,680

SHARES VALUE (NOTE 1)
Bank International Indonesia PT
(For. Reg.) 2,109,000 $ 10,393,289
Bank Niaga PT 1,281,000 3,190,809
Barito Pacific Timber PT (For. Reg.) 80,000 80,739
Bimantara Citra (For. Reg.) (a) 813,500 1,161,644
Dharmala International Land 1,000,000 783,766
Indo Rama Synthetics PT (For. Reg.) 262,500 851,138
Matahari Putra Prima PT (For. Reg.) 8,241,000 16,545,705
Modernland Realty PT 100,000 112,734
Mulia Industrindo PT (For. Reg.) 1,509,000 2,916,255
Pakuwon Jati PT (For. Reg.) 8,013,000 3,269,208
Panin Bank PT (For. Reg.) 3,514,750 3,584,939
Pt Bhuwanatala Indah Permai
(For. Reg.) 500,000 998,497
Pt Tambank Timah (For. Reg.) 100,000 179,300
Roda Vivatex PT (For. Reg.) 2,360,000 1,748,336
SUCACO (Pt. Supreme Cable
Manufacturing Corp.) (For. Reg.) 75,000 89,382
Trias Sentosa (For. Reg.) 1,003,000 2,132,209
69,941,545
ISRAEL - 0.3%
Bank Hapoalim BM (a) 600,000 896,378
Elbit Computer Ltd. 7,500 138,750
First International Bank of Israel #5 17,900 2,063,054
Gilat Satellite Networks (a) 5,000 116,250
Koor Industries Ltd. 10,640 990,503
Orbotech Ltd. (a) 10,000 117,500
4,322,435
KOREA (SOUTH) - 4.1%
Cho Hung Bank Co. Ltd. 310,174 4,734,811
Chosun Brewery Co. Ltd. 37,348 1,286,124
Dae Chang Industrial Co. 3,457 51,527
Dai Han Investment & Finance 1,999 53,683
Dong Yang Tin Plate Industries (a) 6,370 202,989
Hanchang Co. Ltd. 370 12,979
Hanchang Co. Ltd. (New) (a) 2,112 105,837
Hyundai International Merchant Bank 21,216 708,790
Hyundai Motor Co. Ltd. 40,000 2,353,177
Kookmin Bank 121,501 2,990,025
Korea Electric Power Corp. 299,510 14,307,590
Korea Electric Power Corp. ADR 49,700 1,379,175
Korea Exchange Bank (a) 148,500 2,392,791
Korea First Securities Co. Ltd. 2,121 34,339
KOREA Housing Bank (a) 60,700 1,731,500
Korea Mobile Telecommunications Corp. 11,390 15,958,438
LG Insurance Co. Ltd. 10,000 1,149,553
Mando Machinery Corp. 1,000 55,638
Samsung Fire & Marine Insurance 5,085 3,672,699
Shinhan Bank 91,970 2,357,835
Shinhan Investment & Finance 31,952 669,216
Ssangyong Oil Refining 80,000 2,158,689
Suheung Capsule Co. Ltd. 3,450 172,001
Sunny-Emi Co. 300 8,057
Tae Gu Department Store Co. 2,368 60,246
Yeonab Insupanel 973 16,003
Youl Chon Chemical Co. 19,000 617,668
Yukong Ltd. NV GDR (b) 192,000 2,016,000
61,257,380
LUXEMBOURG - 0.1%
Quilmes Industrial SA 26,700 320,400
Quilmes Industrial SA sponsored ADR (a) 119,850 1,423,219
1,743,619
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
MALAYSIA - 25.3%
Arab Malaysian Corp. BHD 6,186,000 $ 25,056,587
Arab Malaysian Finance BHD
(For. Reg.) 4,050,666 18,681,636
Affin Holdings BHD 6,443,000 15,891,097
Boustead Holdings BHD 3,475,000 8,152,697
Buildcon BHD 891,000 3,376,760
Diversified Resources BHD 400,000 1,307,399
EON (Edaran Otomobil Nasional) BHD 50,000 427,110
Gadek BHD 150,000 986,565
Gadek BHD (warrants on rights) (a) 150,000 252,657
Gadek BHD (rights) (a) 150,000 348,907
Hlg Capital BHD 4,882,333 13,999,872
Hong Leong Bank BHD 13,089,000 39,106,898
Hong Leong Bank BHD (warrants) (a) 3,931,200 4,650,908
Hong Leong Credit BHD 5,251,000 26,112,853
Hospital Pantai BHD 388,000 2,349,629
Hume Industries BHD 3,850,000 21,925,005
Industrial Oxygen, Inc. BHD 203,000 304,480
IOI Corp. BHD (warrants) (a) 750 343
Kamunting Corp. BHD 7,221,000 5,994,574
Larut Consolidated BHD 500,000 802,085
Leisure Management BHD 860,000 4,863,044
Malakoff BHD 3,984,000 18,853,499
Malaysian Industrial Development
Finance BHD Ord. 1,002,000 1,671,674
Malaysian Assurance Alliance BHD 100,000 597,554
Malaysian Pacific Industries Ord. 300,000 1,197,113
Malaysian Plantations BHD (d) 14,072,000 19,865,024
Malaysian Resources Corp. BHD 10,105,000 25,936,235
Metacorp BHD 1,140,000 3,246,040
Multi-Purpose Holdings BHD 3,506,000 6,102,282
New Straits Times Press BHD 1,096,000 5,889,874
OSK Holdings BHD 1,418,000 3,127,732
Omega Holdings BHD 200,000 557,449
Oyl Industries BHD 1,640,000 14,864,247
Prime Utilities BHD (warrants) (a) 19,500 45,358
Public Finance BHD (For. Reg.) 3,104,000 7,469,020
Sungei Bagen Rubber Co. BHD 10,000 513,335
TA Enterprise BHD 17,863,000 30,804,452
Tongkah Holdings BHD 6,386,600 12,704,045
Wing Tiek Holdings BHD 1,000 4,171
YTL Corp. BHD 5,134,600 25,739,924
YTL Corp. BHD (warrants) (a) 1,726,200 7,130,483
380,910,617
MEXICO - 8.0%
BANACCI SA de CV:
Class B (a) 821,000 1,895,552
Class L 24,630 50,688
Cifra SA Class C (a) 3,955,300 5,270,177
Corporacion Geo SA de CV (a) 283,960 1,125,883
Corporacion Geo SA de CV Class B
sponsored ADR (b) 12,700 196,850
Desc SA de CV, Series C
sponsored ADR (a) 100,000 1,975,000
Empresas Ica Sociedad Controladora SA
de CV sponsored ADR representing
Ord. (Part. Cert.) 174,200 2,417,025
Emvasa del Valle de Enah Ord. (a) 1,217,000 787,809
Fomento Economico Mexicano SA
de CV Class B 770,000 2,326,096
Gruma SA Class B 250,614 1,013,947
Grupo Casa Autrey SA sponsored ADR 108,900 2,491,088

SHARES VALUE (NOTE 1)
Grupo Carso SA de CV Class A-1 (a) 6,340,000 $ 48,479,838
Grupo Elektra SA 1,203,800 8,092,978
Grupo Financiero Bancomer Class B (a) 23,555,900 10,483,407
Grupo Financiero Inbursa SA Class B 1,167,000 4,548,388
Grupo Modelo SA de CV Class C Ord. 1,390,300 6,553,066
Grupo Televisa SA de CV
sponsored ADR (a) 327,400 10,149,400
Internacional de Ceramica SA
sponsored ADR 250,000 1,875,000
Kimberly Clark de Mexico SA Class A 478,000 8,767,094
Sears Roebuck de Mexico SA de CV (a) 681,000 1,699,056
120,198,342
PAKISTAN - 1.2%
Adamjee Insurance Ltd. 161,125 596,873
Al-Faysal Investment Bank Ltd. (a) 464,000 247,268
Askari Commercial Bank (a) 454,388 382,607
Askari Leasing Ltd. (a)(d) 768,800 531,224
Bank of Punjab (a) 33,150 22,440
Crescent Investment Bank Ltd. 715,000 386,177
DG Kahn Cement Ltd. (a) 1,003,805 518,728
Dandot Cement Co. Ltd. (a) 593,750 145,608
Engro Chemical Pakistan Ltd. 28,800 102,788
Fauji Fertilizer Co. Ltd. 850,000 1,860,851
First Grindlays Modarba 565,200 207,557
Hub Power Co. Ltd. (a) 2,000,000 1,953,029
Hub Power Co. Ltd. GDR (a) 292,600 7,022,400
Ibrahim Energy Ltd. (a) 296,250 119,470
Maple Leaf Cement Factory Ltd. (a) 270,000 143,107
Muslim Commercial Bank Ltd. (a) 305,325 336,413
National Development Leasing Corp. 469,300 204,105
Nishat Tek Ltd. 51,700 23,456
Packages Ltd. 10,000 33,415
Pak Electron Ltd. (a) 55,000 50,237
Pakistan State Oil Co. Ltd. 196,932 1,656,248
Pakland Cement Ltd. (a) 330,000 162,486
Pakland Cement Ltd. (rights) (a) 330,000 42,777
PEL Appliances Ltd. (a) 9,900 22,101
Sui Southern Gas Pipelines Ltd. (a) 956,754 855,002
Sunflo Cit-Russ Ltd. (a)(d) 2,350,000 270,774
Trust Leasing Corp. Ltd. (a) 325,416 90,963
Union Bank Ltd. 624,712 253,484
18,241,588
PERU - 0.9%
Banco Wiese Ltd. 209,720 375,526
Banco Wiese Ltd. sponsored ADR 399,218 2,694,722
Compania de Minas Buenaventura SA:
Class A 83,863 706,661
Class A (rights) (a) 20,964 -
Class T 46,665 393,217
Class T (rights) (a) 11,666 -
Minsur SA Class T 79,864 646,045
Telefonica del Peru SA (CPT) Class B 4,097,805 9,150,355
13,966,526
PHILIPPINES - 4.4%
Aboitiz Equity Ventures, Inc. (a) 16,191,600 3,157,827
Aboitiz Equity Ventures, Inc. (a)(b) 1,504,400 293,401
Ayala Corp. Class B 3,666,656 5,188,003
Ayala Land, Inc. Class B 279,531 432,926
Bankard, Inc. (a) 1,050,000 582,218
Belle Resources Corp. (a) 2,103,999 309,767
Benpress Holdings Corp. GDR (a)(b) 192,500 1,372,525
Benpress Holdings Corp. GDR 89,100 635,283
Guoco Holdings Philippines, Inc. 46,921,000 11,124,673
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
PHILIPPINES - CONTINUED
Guoco Land, Inc. Class A 5,614,200 $ 1,009,053
House of Investments, Inc. 5,095,000 1,363,862
Lepanto Consolidated Mining Co. (a) 72,170,000 662,362
Liberty Telecoms Holdings, Inc. (a)(d) 79,899,000 3,788,707
Liberty Telecoms Holdings, Inc. (a)(b) 20,919,000 991,952
Megaworld Properties & Holdings, Inc. (a) 7,116,000 5,102,294
Metro Pacific, Inc. Class B 39,450,766 9,353,528
Mondragon International
Philippines, Inc. (a) 6,036,000 4,904,971
Negros Navigation Co. (a) 2,625,000 346,319
PICOP Resources (d) 29,359,000 7,409,921
Private Development Corp.
of the Philippines (a) 2,066,000 1,698,623
Robinson's Land Corp. (a) 21,013,000 4,901,694
Sanitary Wares Manufacturing Corp. (a) 119,000 38,226
SM Prime Holdings, Inc. (a) 3,300,000 959,082
Steniel Manufacturing Corp. 3,280,750 470,471
United Paragon Mining Corp. (a) 4,500,000 1,119
William Gothong & Aboitiz (a) 350,000 108,413
66,207,220
POLAND - 0.2%
Bank Slaski SA 6,000 448,822
BRE (Bank Rozwoju Eksportu) 40,000 954,780
Krosno Krosnienskie Szkala SA 14,000 249,972
RAFAKO (a) 10,000 109,762
Warta SA (Reg.) (a) 7,203 142,148
Wedel SA 15,000 569,485
2,474,969
PORTUGAL - 0.0%
CIN 8,750 200,733
Mague (Constru Metalom) 1,586 25,469
Unicer (Uniao Cervejeira) SA 10,000 180,341
406,543
RUSSIA - 0.1%
Mosenergo AO sponsored ADR (a)(b) 65,000 780,000
SINGAPORE - 2.9%
ABR Holdings Ltd. 1,900,000 3,337,838
Amcol Holdings Ltd. 50,000 140,498
Asiamatrix Ltd. (a)(d) 1,670,000 1,995,448
Far East-Levingston Shipbuilding Ltd. 50,000 291,607
Focal Finance Ltd. 303,200 612,438
Hong Leong Finance Ltd. (warrants) (a) 424,600 380,509
Keppel Finance Ltd. 848,000 1,320,853
Keppel Finance Ltd.
(rights on warrants) (a) 212,000 102,532
L&M Group Investments Ltd. 6,450,000 14,863,443
Overseas Union Trust Ltd. (For. Reg.) 551,000 1,528,378
Singapore Finance Ltd. 206,400 413,974
Singapore Finance Ltd. (warrants) (a) 200,000 182,077
Tat Lee Finance Ltd. 1,092,000 1,553,343
Tat Lee Finance Ltd. (warrants) (a) 494,023 228,389
Transmarco Ltd. 972,000 9,332,859
United Pulp & Paper Co. Ltd. 3,250,000 4,900,427
Van Der Horst Ltd. 462,000 2,283,713
43,468,326
SOUTH AFRICA - 6.6%
Amalgamated Banks of
South Africa Ltd. 207,396 969,924

SHARES VALUE (NOTE 1)
Anglo American Coal Corp. Ltd. 300 $ 22,864
Anglo American Corp. of
South Africa Ltd. (Reg.) 210,000 14,210,162
Anglovaal Ltd. Class N 134,200 4,648,961
Anglovaal Ltd. Class N (b) 72,600 2,515,011
Cashbuild Ltd. 10,000 13,741
Centenary Depositary AG Unit 120,000 3,817,552
De Beers Consolidated Mines Ltd. ADR 260,000 8,255,000
Driefontein Consolidated Ltd. Ord. 240,000 3,824,480
Energy Africa Ltd. (a) 310,000 733,834
First National Bank Holdings Ltd. 80,000 572,748
Gencor Ltd. (Reg.) 840,000 3,365,820
ISCOR Ltd. 4,537,700 4,139,472
Liberty Life Association of Africa Ltd. 293,383 8,740,510
Nampak Ltd. 590,000 2,588,915
Nedbank Group Ltd. (b):
GDR 345,039 4,744,286
(warrants) (a) 85,000 212,500
Nedcor Ltd. 150,000 2,104,503
Polifin Ltd. 45,702 86,760
Rembrandt Group Ltd. 780,000 6,665,127
Rustenburg Platinum Holdings Ltd. 185,000 3,653,002
SafRen (Safmarine & Rennies)
Holdings Ltd. 265,100 811,218
Sappi Ltd. 500,000 6,264,434
Sasol Ltd. 500,000 5,196,305
Smith (CG) Ltd. 120,000 623,557
South African Breweries Ltd. 250,000 7,289,261
South African Breweries Ltd.
sponsored ADR 5,025 145,725
Southern Life Association Ltd. (The) 193,283 1,986,396
Standard Bank Investment Corp. 5,000 184,758
Vaal Reefs Exploration & Mining
Co. Ltd. (Reg.) 10,000 979,215
99,366,041
SRI LANKA - 0.3%
Aitken Spence & Co. Ltd. 95,000 303,736
Asia Capital Ltd. (a) 903,100 160,870
Blue Diamond Jewelry Worldwide Ltd. 572,282 172,516
Development Finance Corp. of Ceylon (a) 289,288 1,638,427
John Keells Holdings Ltd. 98,857 316,068
John Keells Holdings Ltd. GDR 88,571 553,569
Kelani Tyres Ltd. (Loc. Reg.) (a) 136,920 27,517
Lanka Ceramic Ltd. (a) 101,300 85,597
Lanka Tiles Ltd. 181,100 143,927
National Development Bank 196,600 826,126
Sampath Bank Ltd. 90,000 80,159
Vanik, Inc. Ltd. 48,000 15,566
4,324,078
SWITZERLAND - 0.1%
Financiere Richemont AG Unit 65,000 949,480
THAILAND - 12.4%
Ayudhya Insurance Co. 291,000 2,096,799
Ayudhya Life Assurance Co.
(For. Reg.) 7,500 28,505
Bangkok Bank Ltd. 964,200 13,971,424
Bangkok Expressway PCL (For. Reg.) (a) 856,800 1,407,732
Bangkok Insurance PCL (For. Reg.) 96,500 1,681,018
Bangkok Metropolitan Bank PCL
(rights) (For. Reg.) (a) 50,418 25,949
Bangkok Union Insurance Co. Ltd.
(For. Reg.) 50,000 73,243
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
THAILAND - CONTINUED
Berli Jucker PCL 55,000 $ 180,731
Bumrungrad Hospital PCL:
(For. Reg.) 50,000 50,478
(rights) (For. Reg.) 25,000 5,444
Charan Insurance PCL (For. Reg.) 317,300 690,916
Deves Insurance Co. Ltd. 60,000 213,789
General Engineering Ltd. 20,000 40,778
Industrial Finance Corp. (For. Reg.) 12,021,066 48,544,005
Kiatnakin Finance & Securities
PCL (warrants) (a) 24,516 52,898
Krung Thai Bank Ltd. (For. Reg.) 5,646,710 27,721,046
Nithipat Capital PCL 1,144,700 4,849,176
Nithipat Capital PCL (warrants)
(For. Reg.) (a) 160,866 234,053
Pacific Insurance PCL 66 89
Phatra Insurance PCL (For. Reg.) 26,000 163,668
Property Perfect PCL (For. Reg.)
(warrants) (a) 4,444 7,214
Safety Insurance PCL (For. Reg.) 363,200 341,509
Securities One PCL:
(For. Reg.) 235,700 2,164,911
(For. Reg.) (warrants) (a) 36,483 122,051
Siam City Bank PCL (For. Reg.) 16,001,700 19,163,902
Siam City Credit Finance & Securities PCL 67,100 257,684
Siam Commercial Life Assurance
(For. Reg.) 215,100 221,415
Siam General Factoring PCL:
(For. Reg.) 290,000 525,269
(warrants) (a) 72,500 45,208
S Khon Kaen Food Industry PCL
(For. Reg.) 30,700 76,572
Swedish Motors Corp. PCL (For. Reg.) 228,400 859,038
Thai Farmers Bank PCL 2,113,900 24,270,285
Thai Military Bank Ltd. (For. Reg.) 7,106,220 34,323,449
Thai Reinsurance Co. Ltd.:
(For. Reg.) 170,000 504,781
(rights) (For. Reg.) (a) 170,000 437,476
Thai Wah Food Products PCL
(For. Reg.) 270,375 192,678
Thai Wah Resorts Development PCL
(For. Reg.) 450,000 285,053
Tong Hua Daily News Co. Ltd. 657,500 689,817
186,520,053
TURKEY - 0.3%
Akbank 9,550,000 1,129,074
Akbank (Non-Tradable Receipt) 19,100,000 2,258,147
Aksigorta (b) 230,875 47,538
Altinyildiz Mensucat Ve Konfeksiyon
Fabrikalari AS 540,000 136,294
Anadolu Anonim Turk Sigoria SK 17,294,000 631,767
Bossa Ticaret Ve Sanayi
Isletmeleri (a)(b) 1,500,000 169,371
Medya Holdings AS Class C 200,000 4,915
Turkiye Garanti Bankasi:
AS 4,015,250 245,357
AS (New) 2,007,625 122,679
AS (rights) (a) 4,015,250 144,014
4,889,156
UNITED KINGDOM - 0.0%
Bakyrchik Gold PLC (a) 25,000 185,775

SHARES VALUE (NOTE 1)
VENEZUELA - 0.2%
Electricidad de Caracas 2,683,975 $ 2,114,448
Mavesa SA sponsored ADR (b) 272,650 1,363,250
3,477,698
TOTAL COMMON STOCKS
(Cost $1,276,575,850) 1,455,432,869
PREFERRED STOCKS - 0.3%
CONVERTIBLE PREFERRED STOCKS - 0.2%
MALAYSIA - 0.2%
Arab Malaysia Corp. BHD 5% 500,000 282,735
Arab Malaysian Finance BHD
unsecured 7 1/2%, 11/20/99
(For. Reg.) 3,242,666 2,379,819
TOTAL CONVERTIBLE PREFERRED STOCKS 2,662,554
NONCONVERTIBLE PREFERRED STOCKS - 0.1%
BRAZIL - 0.1%
COSIPA (CIA Sidurg Paulista) Class B (a) 1,131,400 1,311,669
KOREA (SOUTH) - 0.0%
Shinhan Investment & Finance Co. Ltd. 9,045 101,113
TOTAL NONCONVERTIBLE PREFERRED STOCKS 1,412,782
TOTAL PREFERRED STOCKS
(Cost $4,540,143) 4,075,336
CONVERTIBLE BONDS - 0.4%
MOODY'S PRINCIPAL
RATINGS AMOUNT (C)
NETHERLANDS - 0.4%
Liblife International NV
euro 6 1/2%, 9/30/04
(Cost $5,313,125) - $ 4,500,000 5,490,000
REPURCHASE AGREEMENTS - 2.7%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.33%, dated
4/30/96 due 5/1/96 $ 40,880,052 40,874,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $1,327,303,118) $ 1,505,872,205
LEGEND
(a) Non-income producing
(b) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $27,332,176 or 1.8% of net
assets.
(c) Principal amount is stated in United States dollars unless otherwise
noted.
(d) An affiliated company is a company in which the fund has ownership of
at least 5% of the voting securities. Transactions with companies which are
or were affiliates are as follows:
PURCHASES SALES DIVIDEND MARKET
AFFILIATE COST COST INCOME VALUE
APAC Centertex Corp. PT (For. Reg.) $ 959,605 $ - $ - $ 9,026,476
Askari Leasing Ltd. - - - 531,224
Asiamatrix Ltd. 539,120 - - 1,995,448
China First Pencil Co. Ltd. Class B 211,729 126,028 - 1,665,502
DG Kahn Cement Ltd. - - - -
Guoco Holdings Philippines, Inc. - - - -
Liberty Telecoms Holdings, Inc. 296,835 - - 3,788,707
Malaysian Plantations BHD - - - 19,865,024
PICOP Resources 714,390 - - 7,409,921
Shanghai Hero Ltd. Class B - - - 1,067,263
Shanghai Refrigerator Compressor
Co. Class B - 135,804 - -
Shanghai Vacuum Electron
Devices Co. LTD - - - -
Sunflo Cit-Russ Ltd. - - - 270,774
Transmarco Ltd. - 720,149 - -
TOTALS $ 2,721,679 $ 981,981 $ - $ 45,620,339

OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $691,270,631 and $488,940,634, respectively.
The fund placed a portion of its portfolio transactions with brokerage
firms which are affiliates of FMR. The commissions paid to these affiliated
firms were $25,999 for the period.
The fund participated in the interfund lending program as a borrower. The
maximum loan and the average daily loan balances during the period for
which the loan was outstanding amounted to $4,468,000. The weighted average
interest rate was 5.7%.
INCOME TAX INFORMATION
At April 30, 1996, the aggregate cost of investment securities for income
tax purposes was $1,333,999,404. Net unrealized appreciation aggregated
$171,872,801, of which $281,004,003 related to appreciated investment
securities and $109,131,202 related to depreciated investment securities.
At September 30, 1995, the fund had a capital loss carryforward of
approximately $11,421,000, all of which will expire on September 30, 2002.
The fund intends to elect to defer to its taxable year ending September 30,
1996 approximately $92,082,000 of losses recognized during the period
November 1, 1994 to September 30, 1995.
MARKET SECTOR DIVERSIFICATION
As a Percentage of Total Value of Investment in Securities
Basic Industries 9.9%
Construction & Real Estate 9.5
Durables 2.7
Energy 0.5
Finance 39.8
Health 0.3
Holding Companies 5.8
Industrial Machinery & Equipment 0.2
Media & Leisure 2.5
Nondurables 7.5
Precious Metals 2.1
Repurchase Agreements 2.7
Retail & Wholesale 3.1
Services 0.1
Technology 0.9
Transportation 0.1
Utilities 12.3
100.0%
EMERGING MARKETS
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996 (UNAUDITED)

ASSETS

Investment in $ 1,505,872,205
securities, at
value
(including
repurchase
agreements
of
$40,874,000)
(cost
$1,327,303,1
18) - See
accompanyin
g schedule

Cash 475,756

Receivable for 25,029,983
investments
sold

Receivable for 5,567,257
fund shares
sold

Dividends 6,333,363
receivable

Interest 24,396
receivable

Redemption 321
fees
receivable

TOTAL ASSETS 1,543,303,281

LIABILITIES

Payable for $ 39,460,634
investments
purchased

Payable for 4,347,459
fund shares
redeemed

Accrued 904,970
management
fee

Other payables 925,900
and
accrued
expenses

TOTAL 45,638,963
LIABILITIES

NET ASSETS $ 1,497,664,318

Net Assets
consist of:

Paid in capital $ 1,469,356,134

Distributions in (8,952,484)
excess of net
investment
income

Accumulated (141,352,864)
undistributed
net realized
gain (loss) on
investments
and foreign
currency
transactions

Net unrealized 178,613,532
appreciation
(depreciation
) on
investments
and assets
and liabilities
in
foreign
currencies

NET ASSETS, for $ 1,497,664,318
84,847,771
shares
outstanding

NET ASSET $17.65
VALUE and
redemption
price per
share
($1,497,664,
318 (divided by)
84,847,771
shares)

Maximum $18.20
offering price
per share
(100/97.00 of
$17.65)

STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)

INVESTMENT $ 16,312,711
INCOME
Dividends

Interest 1,170,556

17,483,267

Less foreign (1,957,222
taxes )
withheld

TOTAL 15,526,045
INCOME

EXPENSES

Management $ 4,767,290
fee

Transfer agent 1,970,820
fees

Accounting 311,830
fees and
expenses

Non-interested 2,306
trustees'
compensatio
n

Custodian fees 1,134,501
and
expenses

Registration 68,894
fees

Audit 36,964

Legal 5,827

Interest 713

Miscellaneous 12,632

Total 8,311,777
expenses
before
reductions

Expense (46,342 8,265,435
reductions )

NET 7,260,610
INVESTMENT
INCOME

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

Investment (8,095,688
securities )
(including
realized gain
of $797,679
on sales of
investments
in affiliated
issuers)

Foreign (717,050 (8,812,738
currency ) )
transactions

Change in net
unrealized
appreciation
(depreciation
) on:

Investment 207,932,837
securities

Assets and 110,576 208,043,413
liabilities in
foreign
currencies

NET GAIN (LOSS) 199,230,675

NET INCREASE $ 206,491,285
(DECREASE)
IN NET ASSETS
RESULTING
FROM
OPERATIONS

OTHER $ 1,575,065
INFORMATION
Sales
charges paid
to FDC

Expense $ 34,853
reductions
Directed
brokerage
arrangements
.

Custodian 1,805
interest
credits

Transfer 9,684
agent
interest
credits

$ 46,342

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1996 OCTOBER 31,
(UNAUDITED) 1995

Operations $ 7,260,610 $ 6,340,874
Net
investment
income

Net realized (8,812,738) (108,431,665)
gain (loss)

Change in 208,043,413 (290,729,259)
net
unrealized
appreciation
(depreciation
)

NET INCREASE 206,491,285 (392,820,050)
(DECREASE)
IN NET
ASSETS
RESULTING
FROM
OPERATIONS

Distributions to (5,965,368) (3,891,795)
shareholders
From net
investment
income

In excess of (13,060,503) -
net
investment
income

TOTAL (19,025,871) (3,891,795)
DISTRIBUTION
S

Share 490,393,703 402,587,670
transactions
Net proceeds
from sales of
shares

Reinvestmen 18,581,707 3,798,329
t of
distributions

Cost of (295,271,431) (892,234,446)
shares
redeemed

Redemption 911,767 1,772,044
fees

NET INCREASE 214,615,746 (484,076,403)
(DECREASE)
IN NET
ASSETS
RESULTING
FROM SHARE
TRANSACTIO
NS

TOTAL 402,081,160 (880,788,248)
INCREASE
(DECREASE)
IN NET ASSETS

NET ASSETS 1,095,583,158 1,976,371,406
Beginning of
period

End of period $ 1,497,664,318 $ 1,095,583,158
(including
under
(over)
distribution
of net
investment
income of
$(8,952,48
4)
and
$2,812,777
,
respectivel
y)

OTHER
INFORMATION
Shares

Sold 29,899,133 25,937,062

Issued in 1,242,924 218,179
reinvestment
of
distributions

Redeemed (18,637,234) (56,461,457)

Net increase 12,504,823 (30,306,216)
(decrease)

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

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED OCTOBER 31, NOVEMBER 1, 1990
ENDED (COMMENCEMENT
APRIL 30, 1996 OF
OPERATIONS) TO
OCTOBER 31,

</TABLE>

SELECTED PER-SHARE DATA (UNAUDITED 1995 1994 D 1993 1992 1991
)

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Net asset $ 15.14 $ 19.25 $ 16.18 $ 11.05 $ 10.40 $ 10.00
value,
beginning of
period

Income from
Investment
Operations

Net .09 E .05 .06 .06 E .08 .12
investment
income

Net realized 2.68 (4.13) 2.97 5.28 .76 .30
and
unrealized
gain (loss)

Total from 2.77 (4.08) 3.03 5.34 .84 .42
investment
operations

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

In excess of (.19) - (.01) - - -
net
investment
income

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

Total (.27) (.04) (.05) (.23) (.22) (.04)
distributions

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

Net asset $ 17.65 $ 15.14 $ 19.25 $ 16.18 $ 11.05 $ 10.40
value, end of
period

TOTAL RETURN B, 18.68% (21.17)% 19.32% 49.58% 8.56% 4.41%
C

RATIOS AND
SUPPLEMENT
AL DATA

Net assets, $ 1,497,664 $ 1,095,583 $ 1,976,371 $ 757,737 $ 13,732 $ 6,450
end of period
(000 omitted)

Ratio of 1.34% A 1.28% 1.52% 1.91% 2.60% F 2.60% F
expenses to
average net
assets

Ratio of net 1.17% A .46% .39% .44% .90% 1.34%
investment
income to
average net
assets

Portfolio 80% A 78% 107% 57% 159% 45%
turnover rate

Average $ .0018
commission
rate G

</TABLE>

EUROPE
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (income) and capital gains (the profits the
fund earns when it sells securities that have grown in value). The fund has
a 3% sales charge. If Fidelity had not reimbursed certain fund expenses,
the past 5 years and life of fund total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED PAST 6 PAST 1 PAST 5 LIFE OF
APRIL 30, 1996 MONTHS YEAR YEARS FUND

EUROPE 9.33% 21.88% 72.68% 192.65%

EUROPE (INCL. 3% SALES CHARGE) 6.05% 18.22% 67.50% 183.87%

Morgan Stanley Capital 8.54% 15.95% 74.50% 191.91%
International Europe Index

European Region 9.69% 17.94% 68.06% n/a
Funds Average

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, five years, or
since the fund started on October 1, 1986. For example, if you invested
$1,000 in a fund that had a 5% return over the past year, the value of your
investment would be $1,050. You can compare the fund's returns to the
performance of the Morgan Stanley Capital International Europe Index - a
broad measure of the performance of stocks in Europe, weighted by each
country's market capitalization (or the total value of its outstanding
shares). To measure how the fund's performance stacked up against its
peers, you can compare it to the European region funds average, which
reflects the performance of 46 funds with similar objectives tracked by
Lipper Analytical Services over the past six months. These benchmarks
include reinvested dividends and capital gains, if any, and exclude the
effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED PAST 1 PAST 5 LIFE OF
APRIL 30, 1996 YEAR YEARS FUND

EUROPE 21.88% 11.54% 11.85%

EUROPE (INCL. 3% SALES CHARGE) 18.22% 10.87% 11.49%

Morgan Stanley Capital 15.95% 11.78% 11.82%
International Europe Index

European Region 17.94% 10.80% n/a
Funds Average

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year. (Note: Lipper calculates average annual total
returns by annualizing each fund's total return, then taking the arithmetic
average. This may produce a slightly different figure than that obtained by
averaging the cumulative total returns and annualizing the result.)
$10,000 OVER LIFE OF FUND
IMAHDR PRASUN SHR__CHT 19960430 19960524 170415 S00000000000001
Europe MS Europe Index
00301 MS002
1986/10/01 9700.00 10000.00
1986/10/31 9690.30 10061.24
1986/11/30 10078.30 10600.17
1986/12/31 10485.70 10866.14
1987/01/31 11563.06 11347.33
1987/02/28 12300.92 11751.88
1987/03/31 12922.28 12332.46
1987/04/30 13456.26 12815.21
1987/05/31 13679.56 12743.90
1987/06/30 14232.95 13107.17
1987/07/31 15252.37 13548.56
1987/08/31 15572.75 13660.75
1987/09/30 16135.86 13749.78
1987/10/31 11737.82 11135.61
1987/11/30 11213.55 10645.49
1987/12/31 12048.50 11264.74
1988/01/31 11475.68 10802.62
1988/02/29 11533.94 11438.32
1988/03/31 12067.91 11753.00
1988/04/30 12407.72 11972.00
1988/05/31 12271.80 11748.03
1988/06/30 11999.95 11629.54
1988/07/31 11873.74 11655.59
1988/08/31 11252.38 11126.51
1988/09/30 11776.65 11732.04
1988/10/31 12582.47 12818.60
1988/11/30 12737.81 12976.68
1988/12/31 12751.82 13046.37
1989/01/31 13357.16 13518.81
1989/02/28 13386.93 13365.30
1989/03/31 13615.17 13462.17
1989/04/30 14200.67 13835.82
1989/05/31 13813.65 13126.86
1989/06/30 14190.74 13668.45
1989/07/31 15460.96 15277.34
1989/08/31 15341.88 15086.51
1989/09/30 16036.53 15345.58
1989/10/31 14925.09 14339.46
1989/11/30 15798.36 15135.61
1989/12/31 16874.83 16764.74
1990/01/31 17085.64 16719.83
1990/02/28 16643.94 16319.18
1990/03/31 17145.87 16549.43
1990/04/30 16804.56 16110.24
1990/05/31 17838.53 17421.38
1990/06/30 18581.38 18033.25
1990/07/31 19705.70 18792.65
1990/08/31 17356.68 16929.38
1990/09/30 15640.08 14935.59
1990/10/31 16342.78 16194.23
1990/11/30 16322.71 16356.96
1990/12/31 16100.10 16120.73
1991/01/31 16418.61 16663.17
1991/02/28 17415.23 18120.73
1991/03/31 16480.26 16904.64
1991/04/30 16439.16 16727.91
1991/05/31 16511.08 17221.35
1991/06/30 15062.38 15776.03
1991/07/31 15822.69 16867.89
1991/08/31 16141.20 17175.85
1991/09/30 16726.84 17692.04
1991/10/31 16367.24 17319.34
1991/11/30 15874.06 16911.64
1991/12/31 16769.89 18234.47
1992/01/31 16844.23 18229.22
1992/02/29 17046.02 18299.21
1992/03/31 16461.89 17658.79
1992/04/30 17545.19 18633.42
1992/05/31 18405.46 19693.79
1992/06/30 18235.53 19327.03
1992/07/31 17577.05 18636.54
1992/08/31 17630.16 18575.77
1992/09/30 17354.02 18268.54
1992/10/31 16058.31 16993.88
1992/11/30 16047.69 16985.58
1992/12/31 16346.71 17375.24
1993/01/31 16260.10 17404.43
1993/02/28 16357.53 17603.55
1993/03/31 17429.27 18509.13
1993/04/30 18003.03 18917.36
1993/05/31 18219.54 19120.87
1993/06/30 17710.74 18841.54
1993/07/31 17721.56 18906.21
1993/08/31 19161.37 20565.25
1993/09/30 19139.72 20501.36
1993/10/31 19951.64 21355.45
1993/11/30 19561.92 20894.47
1993/12/31 20787.26 22463.18
1994/01/31 22287.59 23607.14
1994/02/28 21765.73 22771.11
1994/03/31 21156.90 22126.61
1994/04/30 21765.73 23042.85
1994/05/31 20928.59 22063.34
1994/06/30 20678.54 21831.69
1994/07/31 21624.40 22975.89
1994/08/31 22309.33 23704.62
1994/09/30 22004.92 22764.65
1994/10/31 23026.89 23756.36
1994/11/30 22168.00 22846.39
1994/12/31 22087.73 22976.26
1995/01/31 21612.84 22796.38
1995/02/28 21999.37 23312.88
1995/03/31 22529.48 24394.72
1995/04/30 23291.51 25174.86
1995/05/31 23755.35 25690.31
1995/06/30 24429.02 25932.49
1995/07/31 25522.37 27284.20
1995/08/31 25036.44 26229.45
1995/09/30 26140.82 27021.80
1995/10/31 25964.12 26894.17
1995/11/30 25798.46 27085.41
1995/12/31 26247.97 27943.74
1996/01/31 26328.48 28126.42
1996/02/29 27294.66 28638.81
1996/03/31 27961.79 28981.26
1996/04/30 28387.37 29190.95
IMATRL PRASUN SHR__CHT 19960430 19960524 170420 R00000000000118

Let's say you invested $10,000 in Fidelity Europe Fund on October 1, 1986,
when the fund started, and paid the 3% sales charge. By April 30, 1996, the
value of your investment would have grown to $28,387 - a 183.87% increase
on your initial investment. That compares to $10,000 invested in the Morgan
Stanley Capital International Europe Index, which would have grown to
$29,191 over the same period - a 191.91% increase.

An interview with Sally Walden, Portfolio Manager of
Fidelity Europe Fund
Q. HOW DID THE FUND PERFORM, SALLY?
A. For the six- and 12-month periods ending April 30, 1996, the fund
returned 9.33% and 21.88%, respectively. The European region funds average
for the same time period was 9.69% and 17.94%, according to Lipper
Analytical Services. The Morgan Stanley Capital International Europe Index
returned 8.54% for the six-month period and 15.95% for the 12-month period.
Q. HOW DO YOU EXPLAIN THE FUND'S PERFORMANCE?
A. The major factor influencing the fund's performance was stock selection.
On balance, the large holdings in the portfolio performed reasonably well,
though there were some holdings that disappointed. The holdings in the
media and health care sectors performed particularly well, while the
holdings in the finance sector underperformed. In terms of country
weightings, Sweden, which was overweighted in the portfolio, performed well
in absolute terms, but did not perform as well as other European markets.
The U.K. market also lagged the rises shown in other markets, and
restrained the fund's overall return. The strength of the U.S. dollar
against European currencies also reduced returns for the fund.
Q. WHAT WAS YOUR STRATEGY DURING THE PERIOD?
A. It hasn't really changed in the past six months. I continue to emphasize
companies with a strong presence in their sectors, above-average
profitability and good management. Companies or sectors undergoing change
either in terms of restructuring their operations or managing the business
in the interests of shareholders are also a focus. In terms of sectors, I
tend to emphasize media, health care, financials and service-oriented
companies. Heavy industrial or very economically-sensitive stocks tend to
be underweighted and the fund was biased toward medium-sized companies. I
also prefer to buy and hold growth companies rather than trying to time the
economic cycle.
Q. WHICH PARTICULAR HOLDINGS PERFORMED WELL DURING THE PERIOD?
A. As mentioned, a number of the media companies performed strongly. These
include: Canal Plus, a French pay-per-view cable company; Scottish
Television; VNU, a Dutch publisher; and Independent Newspapers, an Irish
newspaper publisher which sold on low valuations relative to similar
businesses. A Swiss travel agency, Kuoni Reisen, also contributed
positively to performance. Since the beginning of this year, French
small-cap stocks have been among the best performing securities in the
European markets. Holdings in the portfolio such as Ecco, a temporary
employment agency, and Guilbert, which handles the stationery needs of
companies, benefited from this outperformance. Other stocks that performed
well were Bayer, a German chemical company, and Securitas, a Swedish
security services company.
Q. WHAT OTHER FACTORS OR STRATEGIES AFFECTED THE FUND'S PERFORMANCE?
A. During the six month period, investors shifted out of financial sectors,
such as banks and insurers, and into pharmaceuticals and more
consumer-related, economically-sensitive stocks in media, retailing,
leisure and support services. This shift reflected a more optimistic view
of growth prospects in Europe, as well as restructuring in certain sectors,
such as chemicals and pharmaceuticals. For example, two drug companies in
Switzerland, Ciba-Geigy and Sandoz, announced a merger, and Hoechst, in
Germany, suggested it might divest certain operations. The lack of
enthusiasm for the finance sector stemmed from the poor bond market
backdrop as well as a poor earnings outlook. It was also a case of the
strong performing stocks continuing to find favor with investors while
weaker stocks remained out of favor. The performance of small-cap stocks
has been mixed; in the U.K. and France, they have significantly
outperformed large-cap stocks since the beginning of the year. However,
small-caps have remained lackluster in most other markets. To some degree,
this affected the fund's performance since I tend to invest in stocks that
are somewhat less well known than the market leaders.
Q. WHERE DID YOU FIND NEW OPPORTUNITIES?
A. The new purchases in the period were the result of bottom-up stock
picking and didn't follow any particular theme. One purchase was Nestle,
the world's largest food company. Nestle is expanding into the developing
markets of Southeast Asia, South America and Eastern Europe. British
Petroleum is one of the largest energy companies in the world. It has
achieved attractive profit growth and has delivered value to shareholders.
The fund also participated in a new listing of Swedish heavy truck
manufacturer Scania, which has done well with a new truck that was launched
last year.
Q. WHICH INVESTMENTS PROVED DISAPPOINTING DURING THE PERIOD?
A. Investors took a more pessimistic view of financial stocks, and this
perception had an adverse impact on some of the banks and insurers held in
the portfolio - including Skandia, a Swedish insurer, and Credit Local de
France, a French lender to local governments. Hornbach, a do-it-yourself
German retailer, was also disappointing. The company has been expanding the
number of outlets while consumer spending has been weak; this strategy has
hurt profits and I sold the fund's position in the stock. I also sold the
fund's shares in Forsheda, a Swedish building materials company after it
reported disappointing profits.
Q. WHAT'S YOUR OUTLOOK GOING FORWARD, SALLY?
A. After a strong start to the year, I think further progress in the short
term may be hard to achieve. While growth in the U.K. economy seems to be
picking up, growth in the rest of Europe has been weak. As a result,
corporate profits in these countries may prove disappointing. This is
especially true of more cyclical companies. There are also a number of
privatizations to come during the year which could reduce the money
investors have available to invest in existing stocks. On the positive
side, there is clearly a need for governments to stimulate their respective
economies. Therefore, interest rates should remain relatively low and could
lead to some economic recovery later in the year. In addition, further
mergers and acquisitions are likely to be announced, which could also be
positive for stock markets. This point is important particularly on the
Continent, because it is a sign that company managements in these countries
are taking a greater interest in managing their companies in the interests
of shareholders. Factors such as these bolster my view that the stock
markets of Europe should continue to provide investors with good long-term
prospects.

FUND FACTS
GOAL: long-term growth of capital by
investing mainly in equity securities of
Western European issuers.
START DATE: October 1, 1986
TRADING SYMBOL: FIEUX
SIZE: as of April 30, 1996, more than
$549 million
MANAGER: Sally Walden, since July 1992; also
manages various funds for non-U.S. investors,
joined Fidelity in 1984
(checkmark)
SALLY WALDEN ON SHAREHOLDER VALUE
"A theme that has continued to grow in prominence
is that of companies seeking to create shareholder
value. This trend has taken the form of companies
making special dividend payments or increasing the
dividend payout, restructuring their operations or
attempting to buy back shares. In some cases,
companies have used their cash to make mergers
and acquisitions. The reasons managements are
taking such action is that companies are more
healthy, cash flow is strong and investment
requirements are not so large given the slow growth
environment for much of Europe. This is good news
for shareholders.
"The utilities sector in the U.K. has seen a number of
special dividend payments, and there have been a
number of rumored and actual takeovers. The media
sector has seen consolidation in the U.K. and, in
continental Europe, Canal Plus, BskyB and
Bertelsmann announced a joint pay-TV deal. The
merger of Sandoz and Ciba-Geigy is expected to
result in cost savings which should improve the cash
flow of the combined group. This has had an effect
on German chemical/pharmaceutical companies
which may want to divest some of their operations.
"In Germany, as well as most other European countries,
share buy-backs are illegal. However, Hoechst and
Bayer have been lobbying the government for a
change in the laws. The same is true in Sweden. One
way of surmounting this issue is for a company to
divest itself of peripheral assets or non-core
businesses, which has just been done by Volvo, which
distributed shares in Swedish Match as a dividend.
In Switzerland, share buy-backs are legal but
tax-inefficient. However, SGS Societe Generale de
Surveillance Holdings, a Swiss company, has found a
way around the tax issue and intends to purchase its
shares. Finland and Spain are looking at introducing
legislation which would allow companies to buy back
shares in companies in their countries."
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
EUROPE
INVESTMENT CHANGES

GEOGRAPHIC DIVERSIFICATION
AS OF APRIL 30, 1996

United States 9.5%
France 11.5%
Row: 1, Col: 1, Value: 9.5
Row: 1, Col: 2, Value: 31.8
Row: 1, Col: 3, Value: 8.199999999999999
Row: 1, Col: 4, Value: 9.199999999999999
Row: 1, Col: 5, Value: 4.6
Row: 1, Col: 6, Value: 11.9
Row: 1, Col: 7, Value: 6.0
Row: 1, Col: 8, Value: 7.3
Row: 1, Col: 9, Value: 11.5
United Kingdom 31.8%
Germany 7.3%
Netherlands 6.0%
Other 11.9%
Spain 4.6%
Switzerland 8.2%
Sweden 9.2%
AS OF OCTOBER 31, 1995
United States 8.4%
Belgium 3.8%
Row: 1, Col: 1, Value: 8.4
Row: 1, Col: 2, Value: 30.2
Row: 1, Col: 3, Value: 5.7
Row: 1, Col: 4, Value: 10.2
Row: 1, Col: 5, Value: 4.4
Row: 1, Col: 6, Value: 11.6
Row: 1, Col: 7, Value: 6.2
Row: 1, Col: 8, Value: 9.800000000000001
Row: 1, Col: 9, Value: 9.699999999999999
Row: 1, Col: 10, Value: 3.8
France 9.7%
Germany 9.8%
United
Kingdom 30.2%
Netherlands 6.2%
Other 11.6%
Switzerland 5.7%
Spain 4.4%
Sweden 10.2%
ASSET ALLOCATION
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Stocks 91.2 92.9

Bonds 0.1 0.2

Short-term investments 8.7 6.9

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

Canal Plus SA 2.0 1.2
(France, Broadcasting)

Kuoni Reisen Holdings AG Class B (Reg.) 1.9 1.6
(Switzerland, Entertainment)

Sandoz AG (Reg.) 1.7 0.0
(Switzerland, Drugs & Pharmaceuticals)

Bayer AG 1.5 0.8
(Germany, Chemicals & Plastics)

Skandia Foersaekrings AB 1.3 1.7
(Sweden, Insurance)

VNU Ord. 1.3 1.2
(Netherlands, Publishing)

Television Francaise 1 SA 1.2 1.6
(France, Broadcasting)

Reuters Holdings PLC Ord. 1.2 1.0
(United Kingdom, Computer Services
& Software)

Telecom Italia Mobile Spa 1.1 0.8
(Italy, Telephone Services)

Ares Serono Class B (Bearer) 1.1 1.2
(Switzerland, Drugs & Pharmaceuticals)

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

Finance 21.5 16.7

Media & Leisure 15.4 16.6

Health 10.1 9.8

Retail & Wholesale 6.0 7.6

Utilities 5.8 6.2

Durables 5.4 6.6

Nondurables 5.1 4.2

Services 5.0 4.3

Construction & Real Estate 3.7 3.9

Technology 3.3 6.8

EUROPE
INVESTMENTS APRIL 30, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 89.5%
SHARES VALUE (NOTE 1)
BELGIUM - 2.0%
Generale de Banque SA 14,262 $ 5,032,847
Quick Restaurants SA 54,245 5,742,675
10,775,522
BERMUDA - 0.4%
Bona Shipholdings Ltd. (a) 203,570 2,043,736
DENMARK - 2.3%
International Service Systems AS,
Series B 95,300 2,695,647
Kobenhaven Lufthave AS 33,230 3,095,613
Tele Danmark AS Class B 48,825 2,456,136
Unidanmark AS Class A 95,010 4,232,322
12,479,718
FINLAND - 0.8%
Cultor OY Ord., Series 2 60,000 2,627,801
Spontel OY Class A 363,300 1,853,820
4,481,621
FRANCE - 11.5%
Axa SA 74,857 4,456,394
BIC 45,620 5,027,726
Canal Plus SA 45,400 11,112,993
Castorama Dubois Investissemnents SA 14,800 2,830,085
Christian Dior SA 26,000 3,463,650
Credit Commercial de France Ord. 72,000 3,604,176
Credit Local de France (b) 38,750 3,057,594
Ecco SA 20,553 4,613,695
Groupe Photo Services GPS 27,300 3,256,787
Guilbert 27,400 4,497,796
Salomon SA 5,584 3,886,775
Seita 73,200 2,816,473
Television Francaise 1 SA 62,920 6,812,684
Total SA Class B 50,328 3,412,612
62,849,440
GERMANY - 6.1%
Bayer AG 25,916 8,341,171
Gehe AG 9,241 5,333,144
Mannesmann AG Ord. 11,240 3,837,780
Rhoen Klinikum AG 25,500 3,079,811
Schering AG 70,100 5,148,523
Tarkett AG 25,000 571,242
Tarkett AG (b) 38,000 868,288
Veba AG Ord. 120,610 5,992,114
33,172,073
IRELAND - 2.7%
Bank of Ireland, Inc. 380,000 2,749,315
CRH PLC 451,560 4,056,593
IWP International (UK Reg.) 367,530 2,659,094
Independent Newspapers PLC 658,500 5,459,064
14,924,066
ITALY - 1.5%
De Rigo Spa sponsored ADR (a) 828 25,461
Mondadori (Arnoldo) Editore Spa 21,550 180,006
Mondadori (Arnoldo) Editore Spa (b) 216,900 1,811,754
Telecom Italia Mobile Spa (a) 2,844,140 6,239,274
8,256,495
NETHERLANDS - 6.0%
ABN-AMRO Holdings NV 108,000 5,590,662
Heineken NV 26,962 5,642,587
ING Groep NV 73,500 5,674,964

SHARES VALUE (NOTE 1)
Philips Electronics NV (Bearer) 99,700 $ 3,520,193
Unilever NV ADR 35,300 4,818,450
VNU Ord. 438,200 7,365,136
32,611,992
NORWAY - 1.6%
Bohler-Gruppen AS (a) 48,700 42,966
Fokus Bank AS (a) 471,250 2,537,591
Hafslund Nycomed AS Class A 43,000 1,262,388
Hafslund Nycomed AS, Series B 90,000 2,512,150
UNI Storebrand AS (a) 490,000 2,332,961
8,688,056
SPAIN - 4.6%
Banco Intercontinental Espanol 18,700 1,965,020
Banco Popular Espanol 31,400 5,198,398
Centros Comerciales Continente SA 112,705 2,478,395
Corporacion Financiera Alba SA 47,970 3,782,446
Empresa Nacional De Electricidad
SA Ord. 48,660 3,053,431
FOCSA (Fomento Construcciones y
Contratas SA) 29,435 2,508,205
Mapfre Vida SA 3,688 204,776
Repsol SA Ord. 105,000 3,846,894
Vallehermoso SA 130,295 2,353,558
25,391,123
SWEDEN - 9.2%
Assa Abloy AB Class B 163,150 1,849,460
Astra AB Class A Free shares 132,445 5,878,818
Autoliv AB 84,150 4,583,772
Hennes & Mauritz AB B Free shares 39,000 2,687,062
ICB Shipping Class B 351,160 3,308,660
Nordbanken AB 115,000 1,963,916
Nordbanken AB (b) 29,500 503,787
Scania AB (a):
Class A 32,300 893,979
Class B 66,100 1,824,609
Securitas AB Class B 103,400 5,936,798
Skandia Foersaekrings AB 323,113 7,373,154
Svenska Handelsbanken 199,000 4,072,256
Trygg Hansa AB Class B 145,500 2,345,548
TV 4 AB Class A (a) 128,930 2,382,127
Volvo AB Class B 205,320 4,700,335
50,304,281
SWITZERLAND - 8.2%
Ares Serono Class B (Bearer) 8,740 6,215,267
BBC Brown Boveri & Cie (Bearer) 3,240 3,894,769
Baloise-Holding (Reg.) 2,275 4,871,736
Kuoni Reisen Holdings AG Class B (Reg.) 5,056 10,156,689
Nestle SA (Reg.) 4,700 5,215,508
Sandoz AG (Reg.) 8,800 9,588,429
Swiss Reinsurance Corp. (Reg.) 4,953 5,173,885
45,116,283
UNITED KINGDOM - 31.8%
Angerstein Underwriting Trust PLC 1,356,770 2,270,016
Asda Group PLC 3,188,600 5,455,011
Associated British Ports PLC Ord. 706,550 3,194,948
BAA PLC Ord. 331,034 2,724,363
Barclays PLC Ord. 203,670 2,262,529
Barratt Developments PLC 826,300 3,356,574
Barratt Developments PLC (rights) (a) 206,575 211,732
Bass PLC Ord. 348,800 4,119,222
Boots Co. PLC (The) 552,030 5,271,194
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
UNITED KINGDOM - CONTINUED
British Petroleum PLC Ord. 631,700 $ 5,708,208
Cable & Wireless PLC Ord. 376,800 2,961,863
Carlton Communications PLC 401,750 2,821,899
Chubb Security PLC 529,620 3,037,517
CLM Insurance Fund PLC 1,219,500 2,012,777
Comcast UK Cable Partners PLC
Class A (a) 132,900 1,760,925
Compass Group PLC Ord. 611,077 5,038,288
Cookson Group PLC 548,000 2,610,161
Electrocomponents PLC 571,220 3,431,085
Flextech PLC (a) 727,580 5,625,975
Granada Group PLC 321,700 3,993,138
Grand Metropolitan PLC 377,600 2,487,214
Lloyds TSB Group PLC 836,400 4,015,348
London Insurance Market Investment
Trust PLC 3,189,770 6,009,925
MAI PLC 614,960 4,078,489
MFI Furniture Group PLC 1,007,307 2,695,007
Mercury Asset Management Group PLC 187,800 2,534,900
Mirror Group Newspaper PLC 1,541,140 5,296,350
Next PLC 400,000 3,195,476
Nynex CableComms Group PLC
ADR Unit (a) 110,000 2,048,750
Prudential Corp. PLC 864,470 5,961,297
Rentokil Group PLC 568,500 3,281,927
Reuters Holdings PLC Ord. 556,180 6,304,242
Royal Bank of Scotland Group PLC Ord. 528,160 4,127,756
Royal Insurance Holdings PLC 441,700 2,416,761
Scottish Television PLC 528,530 5,544,707
Smith & Nephew PLC 829,590 2,419,603
Smiths Industries PLC Ord. 259,970 2,770,399
Smithkline Beecham PLC Ord. 460,560 4,894,125
Standard Chartered Bank PLC 399,060 3,741,350
Storehouse PLC 773,000 3,996,440
Sun Alliance Group PLC 439,300 2,350,657
Takare PLC Ord. 380,600 860,518
Telewest Communications PLC (a) 716,750 1,820,402
Tesco PLC Ord. 1,018,620 4,306,701
Vendome Luxury Group PLC SA 440,000 3,879,790
Vodafone Group PLC 955,225 3,822,697
Westminster Health Care Holdings PLC 448,870 2,097,403
Wickes PLC 1,433,850 2,820,421
Wolseley PLC Ord. 423,850 2,993,102
Zeneca Group PLC Ord. 177,480 3,725,155
174,364,337
UNITED STATES OF AMERICA - 0.8%
International Cabletel, Inc. (a) 157,200 4,598,100
TOTAL COMMON STOCKS
(Cost $366,326,190) 490,056,843
NONCONVERTIBLE PREFERRED STOCKS - 1.7%
GERMANY - 1.2%
Boss (Hugo) AG 3,950 3,945,487
Volkswagen AG 4% 10,300 2,615,766
6,561,253
ITALY - 0.5%
Stet (Societa Finanziaria Telefonica) Spa 1,123,000 2,940,306
TOTAL NONCONVERTIBLE PREFERRED STOCKS
(Cost $6,939,106) 9,501,559
CONVERTIBLE BONDS - 0.1%
MOODY'S PRINCIPAL VALUE
RATINGS AMOUNT (C) (NOTE 1)
LUXEMBOURG - 0.1%
Audiofina 5%, 12/31/96
(Cost $764,460) - BEF 26,010,000 $ 778,255
REPURCHASE AGREEMENTS - 8.7%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.33%, dated
4/30/96 due 5/1/96 $ 47,681,058 47,674,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $421,703,756) $ 548,010,657
CURRENCY ABBREVIATIONS
BEF - Belgian franc
LEGEND
(a) Non-income producing
(b) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $6,241,423 or 1.1% of net
assets.
(c) Principal amount is stated in United States dollars unless otherwise
noted.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $120,276,329 and $127,329,938, respectively.
The fund placed a portion of its portfolio transactions with brokerage
firms which are affiliates of FMR. The commissions paid to these affiliated
firms were $3,011 for the period.
INCOME TAX INFORMATION
At April 30, 1996, the aggregate cost of investment securities for income
tax purposes was $422,123,905. Net unrealized appreciation aggregated
$125,886,752, of which $133,507,948 related to appreciated investment
securities and $7,621,196 related to depreciated investment securities.
MARKET SECTOR DIVERSIFICATION
As a Percentage of Total Value of Investment in Securities
Aerospace & Defense 0.5%
Basic Industries 2.7
Construction & Real Estate 3.7
Durables 5.4
Energy 2.4
Finance 21.5
Health 10.1
Holding Companies 0.7
Industrial Machinery & Equipment 1.0
Media & Leisure 15.4
Nondurables 5.1
Repurchase Agreements 8.7
Retail & Wholesale 6.0
Services 5.0
Technology 3.3
Transportation 2.7
Utilities 5.8
100.0%
EUROPE
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996 (UNAUDITED)

ASSETS

Investment in $ 548,010,657
securities, at
value
(including
repurchase
agreements
of
$47,674,000)
(cost
$421,703,756
) - See
accompanyin
g schedule

Receivable for 3,744,925
investments
sold

Receivable for 797,166
fund shares
sold

Dividends 2,356,287
receivable

Interest 13,782
receivable

Redemption 157
fees
receivable

TOTAL ASSETS 554,922,974

LIABILITIES

Payable to $ 34,325
custodian
bank

Payable for 4,068,801
investments
purchased

Payable for 869,561
fund shares
redeemed

Accrued 372,845
management
fee

Other payables 272,889
and
accrued
expenses

TOTAL 5,618,421
LIABILITIES

NET ASSETS $ 549,304,553

Net Assets
consist of:

Paid in capital $ 392,100,455

Undistributed 1,019,619
net
investment
income

Accumulated 29,928,743
undistributed
net realized
gain (loss) on
investments
and foreign
currency
transactions

Net unrealized 126,255,736
appreciation
(depreciation
) on
investments
and assets
and liabilities
in
foreign
currencies

NET ASSETS, for $ 549,304,553
22,258,257
shares
outstanding

NET ASSET $24.68
VALUE and
redemption
price per
share
($549,304,55
3 (divided by)
22,258,257
shares)

Maximum $25.44
offering price
per share
(100/97.00 of
$24.68)

STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)

INVESTMENT $ 4,028,842
INCOME
Dividends

Interest 993,345

5,022,187

Less foreign (583,303
taxes )
withheld

TOTAL 4,438,884
INCOME

EXPENSES

Management $ 1,927,779
fee
Basic fee

Performance 106,468
adjustment

Transfer agent 748,112
fees

Accounting 176,983
fees and
expenses

Non-interested 1,005
trustees'
compensatio
n

Custodian fees 137,381
and
expenses

Registration 17,877
fees

Audit 25,219

Legal 2,220

Miscellaneous 3,673

Total 3,146,717
expenses
before
reductions

Expense (7,918 3,138,799
reductions )

NET 1,300,085
INVESTMENT
INCOME

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

Investment 30,649,705
securities

Foreign (25,701 30,624,004
currency )
transactions

Change in net
unrealized
appreciation
(depreciation
) on:

Investment 13,766,086
securities

Assets and (54,749 13,711,337
liabilities in )
foreign
currencies

NET GAIN (LOSS) 44,335,341

NET INCREASE $ 45,635,426
(DECREASE)
IN NET ASSETS
RESULTING
FROM
OPERATIONS

OTHER $ 253,346
INFORMATION
Sales
charges paid
to FDC

Deferred $ 28,361
sales
charges
withheld
by FDC

Expense $ 3,181
reductions
Directed
brokerage
arrangements
.

Custodian 318
interest
credits

Transfer 4,419
agent
interest
credits

$ 7,918

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS SIX MONTHS YEAR ENDED
ENDED OCTOBER 31,
APRIL 30, 1996 1995
(UNAUDITED)

Operations $ 1,300,085 $ 5,294,356
Net
investment
income

Net realized 30,624,004 26,527,724
gain (loss)

Change in 13,711,337 24,425,665
net
unrealized
appreciation
(depreciation
)

NET INCREASE 45,635,426 56,247,745
(DECREASE)
IN NET
ASSETS
RESULTING
FROM
OPERATIONS

Distributions to (2,532,707) (4,575,941)
shareholders
From net
investment
income

From net (17,095,677) (2,516,901)
realized gain

TOTAL (19,628,384) (7,092,842)
DISTRIBUTION
S

Share 83,622,572 382,348,507
transactions
Net proceeds
from sales of
shares

Reinvestmen 19,284,813 6,951,448
t of
distributions

Cost of (72,533,919) (453,061,566)
shares
redeemed

Redemption 56,684 13,949
fees

NET INCREASE 30,430,150 (63,747,662)
(DECREASE)
IN NET
ASSETS
RESULTING
FROM SHARE
TRANSACTIO
NS

TOTAL 56,437,192 (14,592,759)
INCREASE
(DECREASE)
IN NET ASSETS

NET ASSETS

Beginning of 492,867,361 507,460,120
period

End of period $ 549,304,553 $ 492,867,361
(including
undistribute
d net
investment
income of
$1,019,619
and
$3,463,355
,
respectivel
y)

OTHER
INFORMATION
Shares

Sold 3,548,152 18,216,804

Issued in 860,545 354,493
reinvestment
of
distributions

Redeemed (3,115,346) (21,565,625)

Net increase 1,293,351 (2,994,328)
(decrease)

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

</TABLE>

FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED OCTOBER 31,
ENDED
APRIL 30, 1996

SELECTED PER-SHARE DATA (UNAUDITED) 1995 1994 D 1993 1992 I 1991

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Net asset $ 23.51 $ 21.18 $ 18.43 $ 15.12 $ 15.93 $ 16.28
value,
beginning of
period

Income from
Investment
Operations

Net .06 K .27 .18 .25 .27 .43 H
investment
income

Net realized 2.04 2.37 2.65 3.35 (.57) (.40)
and
unrealized
gain (loss)

Total from 2.10 2.64 2.83 3.60 (.30) .03
investment
operations

Less (.12) (.20) (.08) (.29) (.48) (.35)
Distributions
From net
investment
income

From net (.81) (.11) - - (.03) G (.03) G
realized gain

Total (.93) (.31) (.08) (.29) (.51) (.38)
distributions

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

Net asset $ 24.68 $ 23.51 $ 21.18 $ 18.43 $ 15.12 $ 15.93
value, end of
period

TOTAL RETURN B, 9.33% 12.76% 15.41% 24.24% (1.89)% .15%
C

RATIOS AND
SUPPLEMENT
AL DATA

Net assets, $ 549,305 $ 492,867 $ 507,460 $ 528,929 $ 431,223 $ 297,831
end of period
(000 omitted)

Ratio of 1.26% A 1.18% 1.35% 1.25% 1.22% 1.31%
expenses to E
average net
assets

Ratio of 1.25% A, 1.18% 1.35% 1.25% 1.22% 1.31%
expenses to F
average net
assets after
expense
reductions

Ratio of net .52% A 1.12% .85% 1.44% 2.38% 2.83%
investment
income to
average net
assets

Portfolio 52% A 38% 49% 76% 95% 80%
turnover rate

Average $ .0308
commission
rate J

</TABLE>

<TABLE>
<CAPTION>
<S> <C>
A ANNUALIZED B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED DURING
THE PERIODS SHOWN (SEE NOTE 7 OF NOTES TO FINANCIAL STATEMENTS). C
TOTAL RETURNS DO NOT INCLUDE THE ONE
TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT
ANNUALIZED. D EFFECTIVE NOVEMBER 1,
1993, THE FUND ADOPTED STATEMENT OF POSITION 93-2, "DETERMINATION,
DISCLOSURE, AND FINANCIAL STATEMENT
PRESENTATION OF INCOME, CAPITAL GAIN, AND RETURN OF CAPITAL
DISTRIBUTIONS BY INVESTMENT COMPANIES."
AS A RESULT, NET INVESTMENT INCOME PER SHARE MAY REFLECT CERTAIN
RECLASSIFICATIONS RELATED TO BOOK TO TAX
DIFFERENCES. E FMR 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
F FMR OR THE FUND HAS ENTERED INTO
VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED
A PORTION OF THE FUND'S EXPENSES (SEE
NOTE 7 OF NOTES TO FINANCIAL STATEMENTS). G INCLUDES AMOUNTS
DISTRIBUTED FROM NET REALIZED GAINS ON
FOREIGN CURRENCY RELATED TRANSACTIONS TAXABLE AS ORDINARY INCOME. H
INCLUDES $.05 PER SHARE OF RECOVERY
OF FOREIGN TAXES PREVIOUSLY WITHELD ON DIVIDEND AND INTEREST PAYMENTS.
I AS OF NOVEMBER 1, 1991 THE
FUND DISCONTINUED THE USE OF EQUALIZATION ACCOUNTING. J FOR FISCAL
YEARS BEGINNING ON OR AFTER
SEPTEMBER 1, 1995, A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE
COMMISSION RATE PER SHARE FOR SECURITY
TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM
PERIOD TO PERIOD AND FUND TO FUND
DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE
TRADING PRACTICES AND COMMISSION
RATE STRUCTURES MAY DIFFER. K NET INVESTMENT INCOME PER SHARE HAS
BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.

</TABLE>

EUROPE CAPITAL APPRECIATION
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (income) and capital gains (the profits the
fund earns when it sells securities that have grown in value). The fund has
a 3% sales charge.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED PAST 6 PAST 1 LIFE OF
APRIL 30, 1996 MONTHS YEAR FUND

EUROPE CAPITAL APPRECIATION 9.80% 13.85% 32.63%

EUROPE CAPITAL APPRECIATION 6.50% 10.43% 28.65%
(INCL. 3% SALES CHARGE)

Morgan Stanley Capital 8.54% 15.95% 31.67%
International Europe Index

European Region Funds Average 9.69% 17.94% n/a

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, or since the fund
started on December 21, 1993. For example, if you invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment would
be $1,050. You can compare the fund's returns to the performance of the
Morgan Stanley Capital International Europe Index - a broad measure of the
performance of stocks in Europe, weighted by each country's market
capitalization (or the total value of its outstanding shares). To measure
how the fund's performance stacked up against its peers, you can compare it
to the European region funds average, which reflects the performance of 46
funds with similar objectives tracked by Lipper Analytical Services over
the past six months. These benchmarks include reinvested dividends and
capital gains, if any, and exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED PAST 1 LIFE OF
APRIL 30, 1996 YEAR FUND

EUROPE CAPITAL APPRECIATION 13.85% 12.70%

EUROPE CAPITAL APPRECIATION 10.43% 11.26%
(INCL. 3% SALES CHARGE)

Morgan Stanley Capital 15.95% 12.35%
International Europe Index

European Region Funds Average 17.94% n/a

Let's say you invested $10,000 in Fidelity Europe Capital Appreciation Fund
on December 21, 1993, when the fund started and paid the 3% sales charge.
By April 30, 1996, the value of your investment would have grown to $12,865
- - a 28.65% increase on your initial investment. That compares to $10,000
invested in the Morgan Stanley Capital International Europe Index, which
would have grown to $13,167 over the same period - a 31.67% increase.

An interview with Kevin McCarey, Portfolio Manager of Fidelity Europe
Capital Appreciation Fund
Q. KEVIN, HOW DID THE FUND PERFORM?
A. Fairly well. For the six months ended April 30, 1996, the fund had a
total return of 9.80%. This compares with the Morgan Stanley Capital
International Europe Index, which returned 8.54%, and the European region
funds average which returned 9.69% over the period, according to Lipper
Analytical Services. For the 12 months ended April 30, 1996, the fund
returned 13.85%, while the total returns for the index and the Lipper
average were 15.95% and 17.94%, respectively.
Q. THE FUND'S UNDERWEIGHTING IN LARGE-CAP STOCKS HURT PERFORMANCE DURING
THE PREVIOUS REPORTING PERIOD. WHAT TURNED THINGS AROUND IN THE PAST SIX
MONTHS?
A. I'd say that a key difference in this period was that we've seen more of
a stock-picking environment than existed through most of 1995. In many
markets in Europe in 1995, investors favored larger-cap stocks, so simply
owning the bigger, better-known stocks was a distinct advantage in the
market. During the past six months, we've returned to a situation where
companies have been valued more on their own merits, and we were rewarded
for finding stocks with good solid fundamentals.
Q. YOU'VE CONTINUED TO MAINTAIN SIZABLE INVESTMENTS IN THE BANKING AND
FINANCE SECTOR. HOW HAS THE GROWTH OF PENSION PLANS AND OTHER SAVINGS AND
INVESTMENT VEHICLES IN EUROPE COMPARED TO THAT OF THE U.S.?
A. First, it's true that finance is my largest sector, but remember that
it's also the largest part of the index; my position actually happens to be
in line with the index. Much of Europe is undergoing the same kind of shift
we're seeing in the U.S., in that pension- and investment-related products
are gaining popularity. In Europe, most pensions are still provided by the
government, and there is concern about the viability of those pensions,
similar to Social Security concerns here. The fund owned a number of stocks
during the period that reflect this trend, notably ING, a Dutch bank and
insurance company with operations around the world. Another that performed
well was Banca Fideuram, an Italian mutual fund and insurance company
that's used some innovative sales approaches to help it achieve
double-digit growth rates in its products. In general, I look for
inexpensive, well-managed companies in this sector that can use their cash
to help grow earnings per share through loan growth and share buy-backs, or
that already have good dividend yields. Bank of Ireland and Svenska
Handelsbanken in Sweden are good examples of all of these factors.
Q. YOU INCREASED THE FUND'S WEIGHTING IN DURABLES, ESPECIALLY AUTO STOCKS.
WHAT WAS BEHIND THAT SHIFT?
A. Strong car sales throughout Europe was one of the bigger economic
stories of the period. Sales were higher than most people had anticipated,
especially when you compare them to consumer activity - or the lack of it -
in the retail area. During the period, I expanded the fund's holdings in
Volkswagen, and added a position in Peugeot to the portfolio. Because auto
stocks are cyclicals, their growth and earnings depend on getting the most
out of their sales volumes in whatever ways they can, and I have been
encouraged to see some of them cut costs and develop new markets in
emerging economies.
Q. ARE THERE AREAS THAT YOU'VE TENDED TO AVOID LATELY?
A. Well, I haven't added to investments in the construction or industrial
equipment sector in recent months. Those stocks tend to be early cyclical
performers, so a few of them had done well for the portfolio during 1995.
As markets weakened in Europe, so did many of these stocks. I've reduced
positions in stocks such as Tomra, a Norwegian vending equipment company,
and Valmet, a Finnish paper machine company, that I felt had approached
fair market valuations. On the other hand, even in sectors such as health
care, which had done so well in 1995 and looked somewhat overbought to me
in 1996, I was able to take advantage of the good stock-picking
environment. I added to the fund's position in Sandoz, the Swiss
pharmaceutical company. It's been a tremendous stock for the fund, and its
recently-announced merger with Ciba-Geigy provided an additional boost.
Q. THE FUND'S TOP 10 HOLDINGS CHANGED QUITE A BIT OVER THE PERIOD. DID ANY
OF THESE PROVE DISAPPOINTING FOR THE PORTFOLIO?
A. No. The sales I made of former top 10 stocks reflected prices reaching
what I felt were fair valuations. My main regret during the period was that
I wish I had been more aggressive in switching to economically sensitive
stocks in late 1995. Following my contrarian tendencies, I thought I would
be buying those stocks later in 1996 in anticipation of a pick-up in
economic growth. However, they started to rise sooner than I expected,
particularly the steel industry, and I would have liked to have made an
earlier, stronger move into them.
Q. WHAT'S YOUR OUTLOOK FOR THE NEXT SEVERAL MONTHS?
A. Interest rates have fallen sharply in much of Europe over the past few
months. That should help European economies look better six months from now
than they do today. I think that the fund is positioned well for the coming
months. My biggest question is what areas will lead the market during the
next year. That's because many of the early cyclical, commodity stocks
typical of a recovery cycle - those of paper, steel and chemical companies,
for instance - have already done well, so the market may have discounted
future rebounds in earnings in those areas. Overall, however, I am strongly
encouraged by an emerging trend on the Continent, which is that many
companies are today focused on what they can do to provide shareholder
value.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.

FUND FACTS
GOAL: long-term growth of capital by investing
mainly in equity securities of Eastern and
Western European issuers
START DATE: December 21, 1993
TRADING SYMBOL: FECAX
SIZE: as of April 30, 1996, more than
$162 million
MANAGER: Kevin McCarey, since 1993; manager,
Plymouth Europe Fund (now Fidelity Advisor
Overseas Fund), 1992-1993; Fidelity Select
Financial Services Portfolio, 1988-1990;
Fidelity Select Automotive Portfolio, 1988-1990;
Fidelity Select Regional Banks Portfolio,
1986-1989; joined Fidelity in 1985
(checkmark)
KEVIN MCCAREY ON THE TREND OF CREATING EXPANDED
SHAREHOLDER VALUE IN EUROPE:
"There is a very positive trend emerging in many
European companies outside the U.K. in that
managements are putting an increased, or in some
cases, initial focus on the creation of shareholder
value. This can entail spinning off various
unprofitable divisions, raising profit targets,
attempting to buy back shares and taking other
shareholder-friendly actions that historically have led
to higher share prices. One important factor in this
trend is that foreign shareholders are putting greater
demands on European companies to communicate
better with investors and adopt shareholder-friendly
actions. European governments are also
responding by reviewing some of the regulations
that, in the past, have hampered management
incentives to create shareholder value. For example,
in many countries on the Continent, stock options and
share buy-backs are illegal, and it's relatively rare for
managers to hold stock in their own companies. As
these markets continue to develop more of an equity
culture similar to that of the U.S., institutional and
individual investors may shift more of the money
that's typically been concentrated in fixed-income
securities into equities. Coupled with a continued
management focus on providing shareholder value,
an increased demand for stocks could prove to be a
long-term boon for European equity markets."
EUROPE CAPITAL APPRECIATION
INVESTMENT CHANGES

GEOGRAPHIC DIVERSIFICATION
AS OF APRIL 30, 1996

Finland 3.7%
Row: 1, Col: 1, Value: 26.0
Row: 1, Col: 2, Value: 4.2
Row: 1, Col: 3, Value: 10.9
Row: 1, Col: 4, Value: 6.6
Row: 1, Col: 5, Value: 11.4
Row: 1, Col: 6, Value: 11.1
Row: 1, Col: 7, Value: 6.1
Row: 1, Col: 8, Value: 4.6
Row: 1, Col: 9, Value: 15.4
Row: 1, Col: 10, Value: 3.7
United Kingdom 26.0%
France 15.4%
Germany 4.6%
Switzerland 4.2%
Italy 6.1%
Sweden 10.9
%
Netherlands 11.1%
Spain 6.6%
Other 11.4%
AS OF OCTOBER 31, 1995

Finland 5.3%
Row: 1, Col: 1, Value: 22.6
Row: 1, Col: 2, Value: 10.8
Row: 1, Col: 3, Value: 11.7
Row: 1, Col: 4, Value: 8.800000000000001
Row: 1, Col: 5, Value: 8.6
Row: 1, Col: 6, Value: 6.5
Row: 1, Col: 7, Value: 3.5
Row: 1, Col: 8, Value: 4.5
Row: 1, Col: 9, Value: 17.7
Row: 1, Col: 10, Value: 5.3
France 17.7%
United Kingdom 22.6%
Switzerland 10.8%
Germany 4.5%
Ireland 3.5%
Italy 6.5%
Sweden 11.7
%
Netherlands 8.6%
Other 8.8%
ASSET ALLOCATION
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Stocks 97.3 97.3

Bonds 0.0 1.9

Short-term investments 2.7 0.8

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

Shell Transport & Trading PLC 3.4 0.0
(United Kingdom, Holding Companies)

ING Groep NV 3.4 1.6
(Netherlands, Credit & Other Finance)

Huhtamaki Ord. 3.0 1.6
(Finland, Foods)

Sandoz AG (Reg.) 2.9 1.3
(Switzerland, Drugs & Pharmaceuticals)

Total SA Class B 2.5 2.9
(France, Oil & Gas)

Volvo AB ADR Class B 2.4 0.0
(Sweden, Autos, Tires, & Accessories)

Lex Service PLC Ord. 2.0 1.3
(United Kingdom, Autos, Tires, & Accessories)

Telecom Italia Mobile Spa de Risp 1.8 0.0
(Italy, Telephone Services)

VNU Ord. 1.8 0.0
(Netherlands, Publishing)

Telefonica de Espana SA sponsored ADR 1.7 0.0
(Spain, Telephone Services)

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

Finance 22.7 18.9

Durables 12.5 5.9

Utilities 7.1 4.6

Nondurables 6.5 9.3

Energy 6.3 5.1

Basic Industries 6.2 6.0

Media & Leisure 6.1 6.0

Industrial Machinery & Equipment 5.2 13.2

Health 5.2 8.0

Retail & Wholesale 5.0 5.9

EUROPE CAPITAL APPRECIATION
INVESTMENTS APRIL 30, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 94.5%
SHARES VALUE (NOTE 1)
AUSTRIA - 0.0%
Hemingway Holdings AG (a) 3,500 $ 51,970
DENMARK - 2.0%
International Service Systems AS, Series B 16,400 463,889
Novo-Nordisk AS Class B 9,500 1,234,163
Sophus Berendsen AS, Series B 3,800 465,157
Unidanmark AS Class A 22,000 980,014
3,143,223
FINLAND - 3.7%
Fiskars OY, Series A 7,100 359,360
Huhtamaki Ord. 143,400 4,739,957
Kemira OY 85,000 816,539
Nokia Corp. AB sponsored ADR 1,000 36,375
Valmet OY Class A 2,000 27,683
5,979,914
FRANCE - 15.4%
Alcatel Alsthom Cie Generale
d'Electricite SA 27,600 2,593,503
Axa SA 26,500 1,577,601
Canal Plus SA 7,000 1,713,457
CEP Communication SA 4,600 417,042
Clarins SA 7,300 1,000,715
Credit Commercial de France Ord. 37,000 1,852,146
Ecco SA 1,000 224,478
Elf Sanofi SA 6,500 524,072
Eramet SA 29,000 2,211,446
Havas SA 3,800 315,344
Lafarge Coppee SA 17,800 1,139,172
Lagardere Groupe SA (Reg.) 37,000 992,247
Michelin SA (Compagnie Generale des
Etablissements) Class B 54,000 2,673,898
NRJ SA 6,420 804,362
Pechiney SA Class A 2,000 94,161
Peugeot SA Ord. 9,700 1,354,099
Paribas SA (Cie Financiere) Class A 14,900 957,610
Simco (Reg.) 3,500 334,300
Total SA Class B 58,000 3,932,831
24,712,484
GERMANY - 3.7%
Bayer AG 2,300 740,264
Bayerische Hypotheken-und
Wechselbank AG 39,700 986,960
Daimler-Benz AG Ord. 3,900 2,134,911
Karstadt AG 1,500 559,948
Munich Reinsurance AG (Reg.) 450 816,713
Veba AG Ord. 1,000 49,682
Volkswagen AG 1,600 552,048
5,840,526
GREECE - 1.6%
Alpha Credit Bank 36,003 1,803,107
Hellenic Bottling Co. SA 20,000 718,686
2,521,793
IRELAND - 3.1%
Anglo-Irish Bank Corp. PLC 1,700,000 1,639,942
Bank of Ireland, Inc. 190,000 1,374,658
Jurys Hotel Group PLC 215,000 810,174
Woodchester Investments PLC Unit 400,000 1,184,738
5,009,512

SHARES VALUE (NOTE 1)
ITALY - 4.2%
Banca Fideuram Spa 900,000 $ 1,552,515
Benetton Group Spa 80,000 961,399
Credito Italiano Ord. 1,400,000 1,780,340
Eni Spa 120,600 520,401
Fiat Spa 435,800 1,482,875
SAI (Sta Assieuratrice Industriale) Spa 32,500 349,239
6,646,769
LIECHTENSTEIN - 1.0%
Liechtenstein Global Trust AG
participation certificate 3,100 1,579,269
NETHERLANDS - 11.1%
AKZO NV 22,000 2,555,004
DSM NV 10,800 1,103,006
Fortis Amev NV 13,000 928,626
ING Groep NV 70,000 5,404,727
KLM Royal Dutch Air Lines NV (NY Reg.) 1,000 33,750
Macintosh Confectie NV 36,000 802,568
Philips Electronics NV (warrants) (a) 112,000 1,794,222
Samas-Groep NV 30,500 1,103,589
VNU Ord. 172,000 2,890,925
Vendex International NV 39,700 1,137,596
17,754,013
NORWAY - 0.9%
Hafslund Nycomed AS, Series B 16,800 468,935
Transocean Drilling AS 26,500 741,704
Tomra Systems AS 30,000 278,367
1,489,006
PORTUGAL - 0.1%
Banco Commercial Portugues SA (Reg.) 16,500 189,262
SPAIN - 6.6%
Banco Bilbao Vizcaya SA Ord. (Reg.) 21,000 797,416
Banco de Santander SA Ord. (Reg.) 36,000 1,670,934
Corporacion Financiera Alba SA 6,400 504,642
Corporacion Mapfrecia International de
Reaseguros SA (Reg.) 3,000 150,789
FOCSA (Fomento Construcciones y
Contratas SA) 4,500 383,452
Prosegur Comp Securidad SA (Reg.) 40,000 1,457,630
Sevillana de Electricidad 108,900 910,850
Telefonica de Espana SA sponsored ADR 53,000 2,789,125
Uralita SA 200,000 1,963,402
10,628,240
SWEDEN - 10.9%
Asea AB:
Class A Free shares 9,500 421,675
Series B Free shares 15,000 1,519,312
Atlas Copco AB Class A Free shares 3,500 65,697
Autoliv AB 4,400 239,674
Electrolux AB 1,000 50,349
Esselte AB Class B Free shares 99,100 1,984,174
Euroc AB, Series A 60,000 1,722,475
Foreningsbanken AB Class A Ord. 450,000 1,212,358
Marieberg Tidnings Class A Free shares 31,200 730,330
Mo Och Domsjoe AB Class B 1,000 53,146
Nordbanken AB 64,000 1,092,962
Scania AB (a):
Class A 5,500 152,226
Class B 5,500 151,821
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
SWEDEN - CONTINUED
Securitas AB Class B 1,000 $ 57,416
Stora Kopparbergs Bergslags AB Class A
Free shares 1,000 13,471
Svedala Industri Free shares 52,100 1,863,851
Svenska Handelsbanken 58,000 1,186,889
Trygg Hansa AB Class B 70,000 1,128,442
Volvo AB ADR Class B 170,000 3,867,500
17,513,768
SWITZERLAND - 4.2%
Holderbank Financiere Glarus
AG (Bearer) 300 226,356
Immuno International AG 500 314,986
Sandoz AG (Reg.) 4,300 4,685,255
Sulzer Gebrueder PC 700 449,980
Surveillance, Societe Generale (Bearer) 450 1,012,455
6,689,032
UNITED KINGDOM - 26.0%
Arjo Wiggins Appleton PLC 81,400 223,917
Barratt Developments PLC 1,000 4,062
Barratt Developments PLC (rights) (a) 250 256
Bass PLC Ord. 128,200 1,514,003
Berkeley Group PLC 1,000 8,441
British Aerospace PLC 64,000 839,747
British Land Co. PLC, (The) Ord. 33,000 214,632
British Petroleum PLC:
Ord. 180,000 1,626,527
ADR 12,400 1,354,700
Caradon PLC 234,200 811,922
Carlton Communications PLC 135,000 948,242
Cookson Group PLC 161,800 770,664
Grand Metropolitan PLC 190,000 1,251,511
Guinness PLC Ord. 84,500 608,814
HSBC Holdings PLC Ord. 123,000 1,823,388
Hillsdown Holdings PLC 218,600 593,092
ICI (Imperial Chemical Industries)
PLC Ord. 16,500 223,834
Inchcape PLC Ord. 180,000 792,237
Kingfisher plc 206,600 1,851,322
Lex Service PLC Ord. 580,000 3,190,954
Lloyds TSB Group PLC 1,000 4,801
London Clubs International PLC 180,000 1,481,374
Meyer International PLC Ord. 85,000 581,026
Next PLC 150,000 1,198,304
Nichols (Harvey) Group PLC (b) 53,000 257,236
Prudential Corp. PLC 280,000 1,930,851
RTZ PLC Ord. 19,900 313,751
Redland PLC Ord. 220,000 1,415,958
Shell Transport & Trading PLC 410,000 5,416,709
Smithkline Beecham PLC Ord. 62,668 665,939
Southern Water PLC Ord. 84,000 964,160
Storehouse PLC 240,000 1,240,809
T & N PLC 377,600 1,021,636
Thames Water PLC Ord. 116,100 1,000,986
Tomkins PLC Ord. 395,000 1,631,351
Vodafone Group PLC 242,700 971,257
WPP Group PLC 341,300 1,046,888
Waste Management International PLC
sponsored ADR (a) 1,000 11,375
Wickes PLC 50,000 98,351

SHARES VALUE (NOTE 1)
Yorkshire Water PLC Ord. 180,000 $ 1,820,519
41,725,546
TOTAL COMMON STOCKS
(Cost $139,607,342) 151,474,327
NONCONVERTIBLE PREFERRED STOCKS - 2.8%
GERMANY - 0.9%
Friedrich Grohe AG 1,600 374,996
Volkswagen AG 4% 4,400 1,121,688
1,496,684
ITALY - 1.9%
Telecom Italia Mobile Spa de Risp (a) 2,100,000 2,958,269
TOTAL NONCONVERTIBLE PREFERRED STOCKS
(Cost $4,398,548) 4,454,953
REPURCHASE AGREEMENTS - 2.7%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.33%, dated
4/30/96 due 5/1/96 $ 4,325,640 4,325,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $148,330,890) $ 160,254,280
LEGEND
(a) Non-income producing
(b) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $257,236 or 0.2% of net
assets.
LEGEND
Purchases and sales of securities, other than short-term securities,
aggregated $133,561,191 and $181,402,011, respectively.
The fund placed a portion of its portfolio transactions with brokerage
firms which are affiliates of FMR. The commissions paid to these affiliated
firms were $4,522 for the period.
The fund participated in the bank borrowing program. The maximum loan and
the average daily loan balances during the period for which loans were
outstanding amounted to $2,663,000 and $1,483,550, respectively. The
weighted average interest rate was 5.9%.
INCOME TAX INFORMATION
At April 30, 1996, the aggregate cost of investment securities for income
tax purposes was $148,391,942. Net unrealized appreciation aggregated
$11,862,338, of which $14,489,451 related to appreciated investment
securities and $2,627,113 related to depreciated investment securities.
At October 31, 1995, the fund had a capital loss carryforward of
approximately $1,744,000, all of which will expire on October 31, 2003,
respectively.
MARKET SECTOR DIVERSIFICATION
As a Percentage of Total Value of Investment in Securities
Aerospace & Defense 0.5%
Basic Industries 6.2
Conglomerates 1.0
Construction & Real Estate 4.4
Durables 12.5
Energy 6.3
Finance 22.7
Health 5.2
Holding Companies 4.2
Industrial Machinery & Equipment 5.2
Media & Leisure 6.1
Nondurables 6.5
Repurchase Agreements 2.7
Retail & Wholesale 5.0
Services 2.9
Technology 1.5
Utilities 7.1
100.0%
EUROPE CAPITAL APPRECIATION
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996 (UNAUDITED)

ASSETS

Investment in $ 160,254,280
securities, at
value
(including
repurchase
agreements
of
$4,325,000)
(cost
$148,330,890
) - See
accompanyin
g schedule

Cash 868

Receivable for 10,046,204
investments
sold

Receivable for 191,806
fund shares
sold

Dividends 1,540,890
receivable

Redemption 9
fees
receivable

TOTAL ASSETS 172,034,057

LIABILITIES

Payable for $ 8,719,551
investments
purchased

Payable for 409,943
fund shares
redeemed

Accrued 110,328
management
fee

Other payables 96,523
and
accrued
expenses

TOTAL 9,336,345
LIABILITIES

NET ASSETS $ 162,697,712

Net Assets
consist of:

Paid in capital $ 139,876,736

Undistributed 893,705
net
investment
income

Accumulated 10,039,920
undistributed
net realized
gain (loss) on
investments
and foreign
currency
transactions

Net unrealized 11,887,351
appreciation
(depreciation
) on
investments
and assets
and liabilities
in
foreign
currencies

NET ASSETS, for $ 162,697,712
12,506,459
shares
outstanding

NET ASSET $13.01
VALUE and
redemption
price per
share
($162,697,71
2 (divided by)
12,506,459
shares)

Maximum $13.41
offering price
per share
(100/97.00 of
$13.01)

STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)

INVESTMENT $ 2,213,012
INCOME
Dividends

Interest 156,204

2,369,216

Less foreign (282,705
taxes )
withheld

TOTAL 2,086,511
INCOME

EXPENSES

Management $ 659,029
fee
Basic fee

Performance (9,357
adjustment )

Transfer agent 285,941
fees

Accounting 60,774
fees and
expenses

Non-interested 330
trustees'
compensatio
n

Custodian fees 81,768
and
expenses

Registration 27,071
fees

Audit 20,162

Legal 1,011

Interest 4,859

Miscellaneous 1,136

Total 1,132,724
expenses
before
reductions

Expense (31,674 1,101,050
reductions )

NET 985,461
INVESTMENT
INCOME

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

Investment 12,130,331
securities

Foreign (9,211 12,121,120
currency )
transactions

Change in net
unrealized
appreciation
(depreciation
) on:

Investment 2,554,713
securities

Assets and (36,600 2,518,113
liabilities in )
foreign
currencies

NET GAIN (LOSS) 14,639,233

NET INCREASE $ 15,624,694
(DECREASE)
IN NET ASSETS
RESULTING
FROM
OPERATIONS

OTHER $ 48,622
INFORMATION
Sales
charges paid
to FDC

Expense $ 31,330
reductions
Directed
brokerage
arrangements
.

Custodian 72
interest
credits

Transfer 272
agent
interest
credits

$ 31,674

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS SIX MONTHS YEAR ENDED
ENDED OCTOBER 31,
APRIL 30, 1996 1995
(UNAUDITED)

Operations $ 985,461 $ 3,699,888
Net
investment
income

Net realized 12,121,120 (1,148,907)
gain (loss)

Change in 2,518,113 9,340,723
net
unrealized
appreciation
(depreciation
)

NET INCREASE 15,624,694 11,891,704
(DECREASE)
IN NET
ASSETS
RESULTING
FROM
OPERATIONS

Distributions to (3,490,593) -
shareholders
from net
investment
income

Share 15,420,952 303,427,272
transactions
Net proceeds
from sales of
shares

Reinvestmen 3,381,909 -
t of
distributions

Cost of (62,689,280) (473,746,104)
shares
redeemed

Redemption 17,242 4,997
fees

NET INCREASE (43,869,177) (170,313,835)
(DECREASE)
IN NET
ASSETS
RESULTING
FROM SHARE
TRANSACTIO
NS

TOTAL (31,735,076) (158,422,131)
INCREASE
(DECREASE)
IN NET ASSETS

NET ASSETS

Beginning of 194,432,788 352,854,919
period

End of period $ 162,697,712 $ 194,432,788
(including
undistribute
d net
investment
income of
$893,705
and
$3,687,757
,
respectivel
y)

OTHER
INFORMATION
Shares

Sold 1,256,683 26,489,106

Issued in 286,360 -
reinvestment
of
distributions

Redeemed (5,137,254) (41,479,214)

Net increase (3,594,211) (14,990,108)
(decrease)

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

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEAR ENDED DECEMBER 21,
ENDED OCTOBER 31, 1993
APRIL 30, 1996 (COMMENCEMENT
OF
OPERATIONS) TO
OCTOBER 31,

</TABLE>

SELECTED PER-SHARE DATA (UNAUDITED) 1995 1994

Net asset $ 12.08 $ 11.35 $ 10.00
value,
beginning of
period

Income from
Investment
Operations

Net .07 .23 .08 E
investment
income

Net realized 1.09 .50 1.27
and
unrealized
gain (loss)

Total from 1.16 .73 1.35
investment
operations

Less (.23) - -
Distributions
From net
investment
income

Redemption - - -
fees added to
paid in
capital

Net asset $ 13.01 $ 12.08 $ 11.35
value, end of
period

TOTAL RETURN B, 9.80% 6.43% 13.50%
C

RATIOS AND
SUPPLEMENT
AL DATA

Net assets, $ 162,698 $ 194,433 $ 352,855
end of period
(000 omitted)

Ratio of 1.32% A 1.36% 1.54% A
expenses to
average net
assets

Ratio of 1.29% A, D 1.36% 1.54% A
expenses to
average net
assets after
expense
reductions

Ratio of net 1.15% A 1.45% .79% A
investment
income to
average net
assets

Portfolio 163% A 176% 317% A
turnover rate

Average $ .0273
commission
rate F

<TABLE>
<CAPTION>
<S> <C> <C> <C>
ANNUALIZED
THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 7 OF NOTES TO FINANCIAL
STATEMENTS).
TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES
(SEE NOTE 7 OF NOTES TO FINANCIAL STATEMENTS).
NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING.
FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS
REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR
SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT
MAY VARY FROM PERIOD TO PERIOD
AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN
VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE
STRUCTURES MAY DIFFER.

</TABLE>

FRANCE
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (income) and capital gains (the profits the
fund earns when it sells securities that have grown in value). The fund has
a 3% sales charge. If Fidelity had not reimbursed certain fund expenses
during the period shown, the total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIOD ENDED PAST 6
APRIL 30, 1996 MONTHS
*

FRANCE 17.56%

FRANCE (INCL. 3% SALES CHARGE) 14.04%

Soci<UNDEF>t<UNDEF> des Bourses Fran<UNDEF>aises 250 Index 14.16%

European Region Funds Average 9.69%

LIFE OF FUND.

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months (since the fund started on
November 1, 1995). For example, if you invested $1,000 in a fund that had a
5% return over the past year, the value of your investment would be $1,050.
You can compare the fund's returns to the performance of the
Soci<UNDEF>t<UNDEF> des Bourses Fran<UNDEF>aises 250 Index - an unmanaged
capitalization weighted index of the top 250 stocks on the Paris Stock
Exchange. To measure how the fund's performance stacked up against its
peers, you can compare the fund's performance to the European region funds
average, which reflects the performance of 46 funds with similar objectives
tracked by Lipper Analytical Services during the period shown. These
benchmarks include reinvested dividends and capital gains, if any, and
exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year. In the fund's next report we'll report these
numbers for the fund and the benchmarks.
$10,000 OVER LIFE OF FUND
The growth of a hypothetical $10,000 INVESTMENT in the fund will appear in
the fund's next report.

An interview with Renaud Saleur, Portfolio Manager
of Fidelity France Fund
Q. RENAUD, HOW HAS THE FUND PERFORMED?
A. It has done well. For the first six months of its existence - through
April 30, 1996 - the fund had a total return of 17.56%. That beat the
14.16% return of the Soci<UNDEF>t<UNDEF> des Bourses Fran<UNDEF>aises (SBF)
250 Index - a measure of the overall performance of the French stock market
- - for the same period. The fund's performance also beat the 9.69% return of
the European region funds average tracked by Lipper Analytical Services
over the same period.
Q. WHAT HELPED PROPEL THE FUND'S PERFORMANCE?
A. As you can see, the French market had a good six months. The fund beat
the Lipper European region funds average because the average is made up of
funds that invest in other markets, many that did not perform as well
during the six-month period. The fund also beat the broad French market
because of two reasons. First, the fund had more invested in stocks of
small- and mid-sized companies than the index, which was weighted more
toward large-capitalization stocks. During the period, stocks of small- and
mid-sized companies performed better than large-caps, helping the fund beat
the index. Second, the fund's performance was helped by stock picking.
Q. HOW HAS THE FRENCH ECONOMY FARED RECENTLY?
A. Not that well. It has been growing very slowly. Consumption over the
past six months has been very weak, hurt by strikes and terrorist threats
at the end of 1995. Unemployment remains quite high, showing no real sign
of improvement, and job security for the average French worker is not very
strong. In addition, the government has been extremely aggressive in
raising taxes, trying to reduce its budget deficit in order to comply with
the Maastricht Treaty - the basis for the creation of a European Union. At
the same time, the French have a very high savings rate, about 13%. The
government is hoping that eventually people will start to spend some of
their savings to stimulate growth, but there's been no evidence of that
thus far.
Q. GIVEN THIS BACKDROP, WHY DID THE FRENCH MARKET PERFORM SO WELL OVER THE
PAST SIX MONTHS?
A. First of all, the French market lagged other European markets badly
through 1994 and 1995, so many French alternatives became attractive
because they were cheaper. In addition, while France historically has not
been a strong equity-oriented culture, the infusion of mutual funds and the
money they bring in has helped drive stock prices higher. Foreign investors
also have seen that France has experienced very low inflation, interest
rates were going down and many French companies were undervalued compared
to alternatives in Germany, Italy and other countries. Finally, a
consolidation of corporate structure has helped the market. That is, there
has been a revival of takeover activity since the beginning of the year, as
well as a number of spin-offs. Companies have become more
shareholder-friendly by increasing dividends, among other things. I could
sum up by saying that while I'm not optimistic about the French economy in
the near term, I feel confident that these elements could continue to
sustain the French market.
Q. WHEN LOOKING AT EQUITY INVESTING, WHAT ARE THE MAIN DIFFERENCES BETWEEN
FRANCE AND THE U.S.?
A. The main difference is that very few French companies historically have
run their companies with the shareholder in mind. There are many reasons
for this. Many companies were state-owned for a long time, and even though
they might be privatized now, management might be former civil servants and
feel they are responsible to the state, not to shareholders. This situation
is changing, but it is a slow process. In addition, corporate takeovers in
France are not as easy as they are in the U.S. because they are generally
financed by loans from the major banks. Many of these banks are controlled
or influenced by the government and, if the state is not happy with the
takeover, it usually won't take place. Another difference is that proxy
fights are rare, if not nonexistent. It's unusual for private shareholders
to voice unhappiness with management.
Q. HAVE ANY SECTORS PIQUED YOUR INTEREST OVER THE PAST SIX MONTHS?
A. At the end of the period, finance had the largest sector weighting in
the fund - including several of the fund's largest investments - although
less than is represented in the SBF 250 index. This hasn't been a very good
sector over the period, but I believe it may turn a bit. The next largest
sectors represented in the fund were media and leisure, and retail and
wholesale, both of which the fund had more invested in than was represented
in the index. Worldwide, media and leisure has attracted investor attention
with the emergence of new services and digital television, and France is no
exception. I've invested in Canal Plus, the country's main provider of pay
TV and digital TV service. The fund also was invested in a number of
publishing companies, such as CEP Communication and Filipachi Medias. The
main attraction here was the improvement in the print advertising climate,
as well as the fact that most of these companies have huge libraries of
copyrighted materials and documents that can be used easily on the Internet
or other multimedia services in the future. In addition, I found valuations
in the sector to be cheap. In retail, I've looked for opportunities in the
food distribution sector, as opposed to food chains themselves, because
limitations on construction have been imposed recently, making it harder to
open new stores.
Q. WHICH STOCKS PERFORMED WELL FOR THE FUND?
A. Axime, a software company the fund has since sold off, benefited from
strong demand for its new electronic banking and multimedia products.
Clarins, a cosmetic company, did well because it was a takeover candidate
and introduced new products. Canal Plus was a solid performer, as was
Zodiac, a manufacturer of seats and emergency systems for airplanes that
benefited from an increase in the demand for new planes.
Q. AND WHICH INVESTMENTS DIDN'T TURN OUT AS WELL AS YOU WOULD HAVE LIKED?
A. Most of the financial sector was flat, which, on a relative basis to the
rest of the market, made them disappointing. There were some exceptions,
mainly special situations, such as Paribas. Financials were hurt by poor
loan growth and the slow economy.
Q. WHAT'S YOUR OUTLOOK FOR THE NEXT SIX MONTHS?
A. I'm generally optimistic. We might see more growth in the second half of
the year compared with last year; that increase in growth probably will
help the market because investors will be comparing generally poor 1995
earnings with somewhat better earnings in the second half of 1996. I also
believe interest rates will be stable or decrease, creating a positive
environment without inflation. Finally, we should see an acceleration in
takeovers. We've seen quite a few already, and it appears there are more to
come. This should be very positive for the market.

FUND FACTS
GOAL: long-term growth of capital by investing
mainly in equity securities of French issuers
START DATE: November 1, 1995
TRADING SYMBOL: FFRAF*
SIZE: as of April 30, 1996, more than $7 million
MANAGER: Renaud Saleur, since November
1995; portfolio manager and senior analyst,
Fidelity International, Limited, since 1986;
joined Fidelity in 1986
* TEMPORARY TRADING SYMBOL
(checkmark)
RENAUD SALEUR ON HIS INVESTMENT APPROACH:
"I generally look for stocks that have some type of
contrarian story to tell. I bought most of the stocks
in the portfolio when they were out of favor,
regardless of whether they were cyclicals - those
that move in tandem with the economy - financials,
value stocks or growth stocks. I might buy a
turnaround story. The common thread is that these
stocks had some sort of positive future to them
that nobody believed or paid attention to. A good
example is the fund's investment in Clarins. This
cosmetic company used to be a great stock. Then it
didn't post any growth in earnings for two or three
years and lost its status as a growth stock. The
company came up with a new product that has been
very successful over the past six months, but that
story wasn't reflected in the stock price. Finally,
investors started to notice the success and the stock
went up.
"My basic approach is to visit companies and to be
the first investor when sentiment changes. I tend to
focus more on service or consumer goods
companies, rather than industrial companies,
because that's where these changes in sentiment are
more common. When a company sells a new line of
products or offers a new service - for example, when
a software company introduces a new product, or
when Clarins introduces a new cosmetic - it can have
a significant impact. It's more difficult for a heavy
industrial company to make such a change. I tend to
find more value following this approach toward
service and consumer goods companies than I do
from looking at heavy industrial companies or
cyclicals. Therefore, I tend to focus more on these
types of companies."
(solid bullet) The French franc depreciated versus the U.S.
dollar, negatively affecting the fund's return.
(solid bullet) Because of France's economic difficulties,
investors generally have been paying a premium for
stocks of companies that tend to have earnings growth
regardless of the economic environment. These
so-called defensive stocks generally are found in the
consumer nondurables sector and include
consumer products such as food, beverage, tobacco
and pharmaceuticals.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
FRANCE
INVESTMENT SUMMARY

GEOGRAPHIC DIVERSIFICATION
AS OF APRIL 30, 1996
United States 8.1%
Row: 1, Col: 1, Value: 8.1
Row: 1, Col: 2, Value: 91.90000000000001
France 91.9%
ASSET ALLOCATION
% OF FUND'S
INVESTMENTS

Stocks 90.1

Bonds 1.8

Short-term investments 8.1

TOP TEN STOCKS
% OF FUND'S
INVESTMENTS

Societe Generale Class A 3.6
(Banks)

Credit Commercial de France Ord. 3.1
(Banks)

Clarins SA 3.1
(Household Products)

Elf Aquitaine SA 2.8
(Oil & Gas)

Rhone Poulenc SA Class A 2.4
(Drugs & Pharmaceuticals)

Docks de France 2.4
(Grocery Stores)

Total SA Class B 2.3
(Oil & Gas)

Groupe Danone 2.1
(Foods)

Paribas SA (Cie Financiere) Class A 1.9
(Banks)

Segin SA 1.9
(Credit & Other Finance)

TOP TEN MARKET SECTORS
% OF FUND'S
INVESTMENTS

Finance 19.1

Media & Leisure 11.2

Retail & Wholesale 9.4

Nondurables 8.2

Construction & Real Estate 6.9

Energy 5.9

Durables 5.2

Health 4.9

Services 4.6

Industrial Machinery & Equipment 4.0

FRANCE
INVESTMENTS APRIL 30, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 87.0%
SHARES VALUE (NOTE 1)
AEROSPACE & DEFENSE - 1.8%
AEROSPACE & DEFENSE - 0.2%
Industrielle d'Aviation Latecoere SA 200 $ 16,899
DEFENSE ELECTRONICS - 1.6%
Dassault Electronique SA 1,000 63,592
Europeene De Propulsion SA 530 63,637
127,229
TOTAL AEROSPACE & DEFENSE 144,128
BASIC INDUSTRIES - 3.3%
CHEMICALS & PLASTICS - 0.7%
L'Air Liquide 300 54,466
METALS & MINING - 2.6%
Eramet SA 1,600 122,011
Pechiney SA Class A 1,826 85,969
207,980
TOTAL BASIC INDUSTRIES 262,446
CONSTRUCTION & REAL ESTATE - 6.9%
BUILDING MATERIALS - 1.2%
Lafarge Coppee SA 610 39,179
Poliet SA 606 62,100
101,279
CONSTRUCTION - 3.9%
Compagnie de Saint Gobain 1,000 119,683
Eiffage SA 242 37,526
GTM-Entrepose 1,500 96,578
Technip SA 627 56,360
310,147
ENGINEERING - 0.8%
Bouygues 600 60,905
REAL ESTATE - 1.0%
Immeubles de France, Ste Des 1,200 82,320
TOTAL CONSTRUCTION & REAL ESTATE 554,651
DURABLES - 3.4%
HOME FURNISHINGS - 0.9%
Strafor Facom SA 1,000 72,506
TEXTILES & APPAREL - 2.5%
Alain Manoukian SA 3,979 69,317
Christian Dior SA 1,000 133,217
202,534
TOTAL DURABLES 275,040
ENERGY - 5.9%
ENERGY SERVICES - 0.8%
Compagnie Generale de
Geophysique SA (a) 935 64,539
OIL & GAS - 5.1%
Elf Aquitaine SA 3,000 222,912
Total SA Class B 2,700 183,080
405,992
TOTAL ENERGY 470,531
FINANCE - 19.1%
BANKS - 13.6%
CPR (Comp Par Reescompte) 812 70,336
Caisse Regionale de Credit Agricole
Mutuel de l'Ile de France 500 81,593
Compagnie Bancaire Ord. 1,000 110,402
Compagnie de Suez SA 1,200 49,675

SHARES VALUE (NOTE 1)
Credit Commercial de France Ord. 5,000 $ 250,290
Paribas SA (Cie Financiere) Class A 2,400 154,246
Societe Generale Class A 2,500 290,023
Union Financiere de France SA 800 81,980
1,088,545
CREDIT & OTHER FINANCE - 2.7%
Cetelem 300 64,327
Segin SA (a) 1,232 151,737
216,064
INSURANCE - 2.8%
Axa SA 1,200 71,438
Scor SA 1,200 43,689
UAP (Union des Assurances de Paris) SA 4,975 107,638
222,765
TOTAL FINANCE 1,527,374
HEALTH - 3.7%
DRUGS & PHARMACEUTICALS - 3.7%
Rhone Poulenc SA Class A 8,000 191,802
Synthelabo 1,298 101,165
292,967
HOLDING COMPANIES - 3.0%
Lagardere Groupe SA (Reg.) 3,000 80,452
Nord Est 2,200 59,679
Ugc Droits Audiovisuels 926 51,510
Union Assurancesfederale SA 393 47,719
239,360
INDUSTRIAL MACHINERY & EQUIPMENT - 2.8%
ELECTRICAL EQUIPMENT - 1.0%
Alcatel Alsthom Cie Generale
d'Electricite SA 800 75,174
POLLUTION CONTROL - 1.8%
CGEA (Cie Generale d'Entreprises
Automobiles) 176 35,050
SITA (Societe Industrielle de Transports
Automobiles) 508 110,008
145,058
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 220,232
MEDIA & LEISURE - 11.2%
BROADCASTING - 4.4%
Canal Plus SA 550 134,629
Europe 1 Communication (Reg.) 310 71,926
NRJ SA 1,143 143,206
349,761
LEISURE DURABLES & TOYS - 2.6%
Skis Rossignol SA 370 127,697
Zodiac SA 320 79,196
206,893
PUBLISHING - 3.3%
CEP Communication SA 1,500 135,992
Filipacchi Medias 657 127,538
263,530
RESTAURANTS - 0.9%
Sodexho SA 181 71,707
TOTAL MEDIA & LEISURE 891,891
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
NONDURABLES - 8.2%
BEVERAGES - 1.6%
Pernod-Ricard 1,070 $ 70,036
Remy Cointreau SA 2,200 62,954
132,990
FOODS - 3.0%
Eridania Beghin Say Group Ord. 440 71,717
Groupe Danone 1,100 166,106
237,823
HOUSEHOLD PRODUCTS - 3.1%
Clarins SA 1,800 246,752
TOBACCO - 0.5%
Seita 1,060 40,785
TOTAL NONDURABLES 658,350
RETAIL & WHOLESALE - 8.7%
GENERAL MERCHANDISE STORES - 1.7%
Carrefour Supermarche SA 96 74,951
Galeries Lafayette SA 200 63,418
138,369
GROCERY STORES - 5.1%
Docks de France 1,000 189,482
Guyenne et Gascogne SA 400 130,781
Promodes 300 86,137
406,400
RETAIL & WHOLESALE, MISCELLANEOUS - 1.9%
Castorama Dubois Investissements SA 387 74,003
Hyparlo SA 1,100 77,606
151,609
TOTAL RETAIL & WHOLESALE 696,378
SERVICES - 4.6%
ADVERTISING - 2.4%
Havas Advertising 418 47,360
Havas SA 1,700 141,075
188,435
SERVICES - 2.2%
Ecco SA 188 42,202
Elyo SA 1,250 57,038
Publicis SA 1,000 75,406
174,646
TOTAL SERVICES 363,081
TECHNOLOGY - 2.8%
COMMUNICATIONS EQUIPMENT - 1.0%
Com 1 SA (a) 1,600 81,980
ELECTRONICS - 1.8%
Schneider SA 3,104 144,517
TOTAL TECHNOLOGY 226,497
UTILITIES - 1.6%
WATER - 1.6%
Lyonnaise des Eaux Dumez SA 1,300 130,452
TOTAL COMMON STOCKS
(Cost $6,301,048) 6,953,378
PREFERRED STOCKS - 3.1%
SHARES VALUE (NOTE 1)
CONVERTIBLE PREFERRED STOCKS - 1.2%
HEALTH - 1.2%
DRUGS & PHARMACEUTICALS - 1.2%
Sanofi SA 4% 1,080 $ 96,682
NONCONVERTIBLE PREFERRED STOCKS - 1.9%
INDUSTRIAL MACHINERY & EQUIPMENT - 1.2%
Legrand SA 726 93,206
RETAIL & WHOLESALE - 0.7%
GROCERY STORES - 0.7%
Casino Guichard Perrachon et Cie 2,170 59,075
TOTAL NONCONVERTIBLE PREFERRED STOCKS 152,281
TOTAL PREFERRED STOCKS
(Cost $216,871) 248,963
CONVERTIBLE BONDS - 1.8%
MOODY'S PRINCIPAL VALUE
RATINGS AMOUNT (C) (NOTE 1)
DURABLES - 1.8%
AUTOS, TIRES, & ACCESSORIES - 1.8%
Michelin SA (Compagnie Generale des
Etablissements) 6%, 1/2/98
(Cost $148,596) - FRF 660,000 144,838
REPURCHASE AGREEMENTS - 8.1%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.33%, dated
4/30/96 due 5/1/96 $ 647,096 647,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $7,313,515) $ 7,994,179
CURRENCY ABBREVIATIONS
FRF - French franc
LEGEND
(a) Non-income producing
(b) Principal amount is stated in United States dollars unless otherwise
noted.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $7,399,367 and $755,268, respectively.
The fund placed a portion of its portfolio transactions with brokerage
firms which are affiliates of FMR. The commissions paid to these affiliated
firms were $252 for the period.
INCOME TAX INFORMATION
At April 30, 1996, the aggregate cost of investment securities for income
tax purposes was $7,313,515. Net unrealized appreciation aggregated
$680,664, of which $771,353 related to appreciated investment securities
and $90,689 related to depreciated investment securities.
FRANCE
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996 (UNAUDITED)

ASSETS

Investment in $ 7,994,179
securities, at
value
(including
repurchase
agreements
of $647,000)
(cost
$7,313,515)
- - See
accompanyin
g schedule

Cash 499

Receivable for 65,290
investments
sold

Receivable for 36,634
fund shares
sold

Dividends 3,239
receivable

Interest 549
receivable

Redemption 181
fees
receivable

Prepaid 14,089
expenses

TOTAL ASSETS 8,114,660

LIABILITIES

Payable for $ 644,086
investments
purchased

Payable for 47,261
fund shares
redeemed

Accrued 3,118
management
fee

Other payables 23,853
and
accrued
expenses

TOTAL 718,318
LIABILITIES

NET ASSETS $ 7,396,342

Net Assets
consist of:

Paid in capital $ 6,707,474

Accumulated (13,923
net )
investment
(loss)

Accumulated 22,198
undistributed
net realized
gain (loss) on
investments
and foreign
currency
transactions

Net unrealized 680,593
appreciation
(depreciation
) on
investments
and assets
and liabilities
in
foreign
currencies

NET ASSETS, for $ 7,396,342
631,798
shares
outstanding

NET ASSET $11.71
VALUE and
redemption
price per
share
($7,396,342
(divided by) 631,798
shares)

Maximum $12.07
offering price
per share
(100/97.00 of
$11.71)

STATEMENT OF OPERATIONS
NOVEMBER 1, 1995 (COMMENCEMENT OF
OPERATIONS) TO
APRIL 30, 1996 (UNAUDITED)

INVESTMENT $ 12,182
INCOME
Dividends

Interest 26,082

38,264

Less foreign (1,633
taxes )
withheld

TOTAL 36,631
INCOME

EXPENSES

Management $ 15,303
fee

Transfer agent 5,933
fees

Accounting 27,056
fees and
expenses

Non-interested 4
trustees'
compensatio
n

Custodian fees 35,904
and
expenses

Registration 20,291
fees

Audit 14,453

Total 118,944
expenses
before
reductions

Expense (79,077 39,867
reductions )

NET (3,236
INVESTMENT )
INCOME
(LOSS)

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

Investment 22,416
securities

Foreign (218 22,198
currency )
transactions

Change in net
unrealized
appreciation
(depreciation
) on:

Investment 680,664
securities

Assets and (71 680,593
liabilities in )
foreign
currencies

NET GAIN (LOSS) 702,791

NET INCREASE $ 699,555
(DECREASE)
IN NET ASSETS
RESULTING
FROM
OPERATIONS

OTHER $ 23,547
INFORMATION
Sales
charges paid
to FDC

Expense $ 35
reductions
Custodian
interest
credits

FMR 79,042
reimburseme
nt

$ 79,077

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS NOVEMBER 1, 1995
(COMMENCEMENT
OF OPERATIONS) TO
APRIL 30, 1996
(UNAUDITED)

Operations $ (3,236)
Net
investment
income (loss)

Net realized 22,198
gain (loss)

Change in 680,593
net
unrealized
appreciation
(depreciation
)

NET INCREASE 699,555
(DECREASE)
IN NET
ASSETS
RESULTING
FROM
OPERATIONS

Distributions to (10,687)
shareholders
from net
investment
income

Share 8,429,276
transactions
Net proceeds
from sales of
shares

Reinvestmen 10,618
t of
distributions

Cost of (1,746,182)
shares
redeemed

Redemption 13,762
fees

NET INCREASE 6,707,474
(DECREASE)
IN NET
ASSETS
RESULTING
FROM SHARE
TRANSACTIO
NS

TOTAL 7,396,342
INCREASE
(DECREASE)
IN NET ASSETS

NET ASSETS

Beginning of -
period

End of period $ 7,396,342
(including
accumulated
net
investment
loss of
$13,923)

OTHER
INFORMATION
Shares

Sold 794,008

Issued in 1,052
reinvestment
of
distributions

Redeemed (163,262)

Net increase 631,798
(decrease)

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

</TABLE>

FINANCIAL HIGHLIGHTS
NOVEMBER 1, 1995
(COMMENCEMENT
OF OPERATIONS) TO
APRIL 30, 1996
(UNAUDITED)

SELECTED $ 10.00
PER-SHARE DATA
Net asset
value,
beginning of
period

Income from
Investment
Operations

Net (.01) F
investment
income (loss)

Net realized 1.72
and
unrealized
gain (loss)

Total from 1.71
investment
operations

Less (.04)
Distributions
From net
investment
income

Redemption .04
fees added to
paid in
capital

Net asset $ 11.71
value, end of
period

TOTAL RETURN B, 17.56%
C

RATIOS AND
SUPPLEMENT
AL DATA

Net assets, $ 7,396
end of period
(000 omitted)

Ratio of 2.00% A, D
expenses to
average net
assets

Ratio of net (.16)% A
investment
income (loss)
to average
net assets

Portfolio 42% A
turnover rate

Average $ .1879
commission
rate E

GERMANY
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (income) and capital gains (the profits the
fund earns when it sells securities that have grown in value). The fund has
a 3% sales charge. If Fidelity had not reimbursed certain fund expenses
during the period shown, the total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIOD ENDED PAST 6
APRIL 30, 1996 MONTHS
*

GERMANY 5.10%

GERMANY (INCL. 3% SALES CHARGE) 1.95%

Deutscher Akteinindex 100 3.30%

European Region Funds Average 9.69%

LIFE OF FUND.
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months (since the fund started on
November 1, 1995). For example, if you invested $1,000 in a fund that had a
5% return over the past year, the value of your investment would be $1,050.
You can compare the fund's returns to the performance of the Deutscher
Akteinindex 100 - an unmanaged capitalization weighted index of the top 100
stocks on the German Securities Market. To measure how the fund's
performance stacked up against its peers, you can compare the fund's
performance to the European region funds average, which reflects the
performance of 46 funds with similar objectives tracked by Lipper
Analytical Services over the past six months. These benchmarks include
reinvested dividends and capital gains, if any, and exclude the effects of
sales charges.
AVERAGE ANNUAL TOTAL RETURNS
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year. In the fund's next report we'll report these
numbers for the fund and the benchmarks.
$10,000 OVER LIFE OF FUND

The growth of a hypothetical $10,000 INVESTMENT in the fund will appear in
the fund's next report.

An interview with Simon Roberts, Portfolio Manager
of Fidelity Germany Fund
Q. SIMON, HOW HAS THE FUND PERFORMED?
A. For the period ended April 30, 1996, the fund's total return was 5.10%,
while its benchmark, the Deutscher Akteinindex 100, returned 3.30%, after a
7.40% depreciation of the German deutsche mark versus the U.S. dollar. The
total return for the European region funds average was 9.69%, according to
Lipper Analytical Services.
Q. WHAT HAS THE INVESTMENT ENVIRONMENT BEEN LIKE FOR THE GERMAN MARKET
DURING THE PAST SIX MONTHS?
A. The German market ended 1995 and began 1996 on quite a strong note,
outperforming most other European markets. I would say there were two
primary reasons for this. First, there was widespread optimism that the
U.S. dollar would continue to strengthen against the deutsche mark. Many
German companies are dependent on exports, so a weakening mark has
historically helped stock prices. The second factor was that the German
economy has struggled with weak domestic demand, especially in the retail
and construction sectors. This economic sluggishness, coupled with little
inflationary pressure, led the Bundesbank to reduce short-term rates,
helping stock prices to rise. Since January, the German market has somewhat
underperformed the rest of Europe as domestic softness has led to
downgrades in earnings expectations.
Q. HOW HAVE YOU STRUCTURED THE PORTFOLIO SO FAR?
A. I have tried not to focus the fund's holdings too heavily in any one
sector. I tend to use input from our team of analysts to help me find the
stocks within each sector I feel are the most promising. Then, I may take a
somewhat overweighted position in one or two stocks. That said, the auto
sector is one that I feel fits that criteria. Car sales had been running
below long-term trend levels, and they picked up during the first quarter
of 1996, both in Germany and the rest of Europe. I was overweighted in a
couple of the auto stocks, specifically Volkswagen and Porsche.
Q. WHY DID YOU CHOOSE THOSE TWO?
A. Well, a couple of years ago, both companies embarked on major
restructuring programs to cut costs and revamp their product lines. Even
though they are still only partway through these programs, I feel they've
taken strong steps in the right direction. There's still further work to be
done in reducing overall costs, but sales volumes have picked up without
having to lower prices, so the results are beginning to show.
Q. YOU'VE HAD SIZABLE POSITIONS IN BANK STOCKS AS WELL AS CHEMICAL AND
PHARMACEUTICAL COMPANIES. WHAT'S BEEN YOUR THINKING IN THOSE AREAS?
A. Actually, my position in banks is in line with the index. There has been
pressure on net interest margins in the bank sector for some time, as a
result of increasing competition within Germany. Some of the banks are
starting to recognize that and, again, the key to me is their ability to
control the cost side. I feel that Deutsche Bank and Bayerische
Hypotheken-und Wechselbank are the ones that have made the strongest moves
toward controlling their costs. There is, I feel, considerable overlap
between the chemical and pharmaceutical sectors - driven by the
pharmaceutical side, since most of the large chemical companies also have
big pharmaceutical divisions. If you add the two together, I've been
slightly underweighted overall relative to the index, but I'm fairly
optimistic about the long-term prospects of the pharmaceutical side. The
fund had large positions in Hoechst and Bayer that performed particularly
well during most of the period.
Q. WHERE HAS THE FUND BEEN UNDERWEIGHTED COMPARED TO THE INDEX?
A. I would say that the insurance sector is one in particular. The
insurance rate environment has been weak for some time, and I don't see
that turning around very quickly. Historically, insurance companies in the
German market have enjoyed higher profit margins than in many other
European countries and, as a result, many of those companies have been slow
in moving toward providing shareholder value. Due to current overcapacity
in the insurance market, we've seen large cuts in rates for their fire,
property and auto lines.
Q. HAVE ANY STOCKS IN THE PORTFOLIO PROVED TO BE DISAPPOINTMENTS?
A. As it happens, my biggest regret was reducing a position that turned out
to be better than I had anticipated. Veba, an electric utility stock, was
one that I had been positive on for quite some time. I became cautious
about the stock and reduced the fund's holdings in it for most of the
period, but the company's continued success has led me to re-evaluate it
and by the end of the period, I had built the fund's holdings back up.
Still, it was a missed opportunity not to have stayed with the stock
through the period. I also might say that I could have been more fully
invested in the chemical sector, if I had known how prepared the market was
to recognize value in the pharmaceutical aspect of the business.
Q. WHAT WOULD YOU SAY YOUR OUTLOOK IS OVER THE NEXT SEVERAL MONTHS?
A. I think the majority of earnings downgrades may have occurred by now.
Given the weak domestic economy and high unemployment, there may be some
room for further interest rate cuts, as well as possible further weakening
of the deutsche mark. Because of the cyclical nature of many parts of the
German market, especially autos and chemicals, a declining mark in
particular could serve to help the stock market going forward.

FUND FACTS
GOAL: long-term growth of capital by investing
mainly in equity securities of German issuers
TRADING SYMBOL: FGERF*
START DATE: November 1, 1995
SIZE: as of April 30, 1996, more than $6
million
MANAGER: Simon Roberts, since November
1995; joined Fidelity in 1992
* TEMPORARY TRADING SYMBOL
(checkmark)
SIMON ROBERTS ON HIS INVESTMENT STYLE:
"I don't follow a particular style that you can neatly
sum up into one phrase, such as value investor or
growth investor. I suppose my style is more of a
hybrid, trying to take from the best of all the investing
disciplines. I pay close attention to, and actively
participate in, the determinations made by our
internal research staff as to the overall health and
quality of the companies we examine. I'm basically
looking for any type of difference in valuation from
the consensus out in the marketplace. Sometimes
that difference can be finding something that's going
to drive earnings faster than the market thinks, or
running financial projections that produce different
results than those of outside analysts. I think it's a
style that's well suited to the German market in
particular. Many of the classic growth companies are
private and therefore not even listed on the
exchange. That leaves much of the market
dominated by cyclical companies. In that kind of
environment, I feel you have to be prepared to find
undervalued and turnaround situations on a
stock-by-stock basis. And with the considerable
analytical resources that I have available to me
within Fidelity, I'll continue to favor this approach
over making large and more risky industry
allocations."
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
GERMANY
INVESTMENT SUMMARY

GEOGRAPHIC DIVERSIFICATION
AS OF APRIL 30, 1996
Other 3.3%
Row: 1, Col: 1, Value: 3.3
Row: 1, Col: 2, Value: 96.7
Germany 96.7%
ASSET ALLOCATION
% OF FUND'S
INVESTMENTS

Common Stocks 81.2

Preferred Stocks 18.8

TOP TEN STOCKS
% OF FUND'S
INVESTMENTS

Deutsche Bank AG 6.6
(Banks)

Veba AG Ord. 6.3
(Electric Utility)

Daimler-Benz AG Ord. 6.2
(Autos, Tires, & Accessories)

Bayer AG 5.7
(Chemicals & Plastics)

Siemens AG 5.3
(Electrical Equipment)

RWE AG 4.7
(Electric Utility)

Mannesmann AG Ord. 4.6
(Iron & Steel)

Volkswagen AG 4% 4.5
(Autos, Tires, & Accessories)

Porsche AG 4.0
(Autos, Tires, & Accessories)

Schering AG 3.3
(Drugs & Pharmaceuticals)

TOP TEN MARKET SECTORS
% OF FUND'S
INVESTMENTS

Basic Industries 23.6

Durables 20.3

Finance 18.3

Utilities 11.7

Health 8.0

Industrial Machinery & Equipment 6.7

Retail & Wholesale 5.9

Transportation 2.6

Energy 1.4

Media & Leisure 1.1

GERMANY
INVESTMENTS APRIL 30, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 81.2%
SHARES VALUE (NOTE 1)
BASIC INDUSTRIES - 22.9%
CHEMICALS & PLASTICS - 10.0%
Bayer AG (a) 1,100 $ 354,038
Degussa AG 525 188,853
Sommer-Allibert Industrie AG 1,600 64,867
Wella AG 30 13,475
621,233
IRON & STEEL - 5.5%
BOEHLER-UDDEHOLM AG (a) 700 57,102
Mannesmann AG Ord. 827 282,370
339,472
METALS & MINING - 7.4%
Metallgesellschaft AG Ord. 10,000 187,890
Viag AG 436 170,927
Viag AG (New) 142 54,510
Vossloh AG (Reg.) 160 46,013
459,340
TOTAL BASIC INDUSTRIES 1,420,045
CONSTRUCTION & REAL ESTATE - 0.4%
BUILDING MATERIALS - 0.4%
Tarkett AG 1,000 22,850
DURABLES - 9.9%
AUTOS, TIRES, & ACCESSORIES - 8.4%
Continental Gummi-Werke AG 4,000 69,071
Daimler-Benz AG Ord. 700 383,189
Kolbenschmidt AG 600 68,157
520,417
TEXTILES & APPAREL - 1.5%
Adidas AG 1,220 92,789
TOTAL DURABLES 613,206
ENERGY - 1.4%
OIL & GAS - 1.4%
OEMV AG 700 69,510
RWE-DEA AG fuer Mineraloele und
Chemie 75 18,998
88,508
FINANCE - 17.8%
BANKS - 13.6%
Bayerische Hypotheken-und
Wechselbank AG 3,700 91,984
Bayerische Vereinsbank AG Ord. 3,600 105,761
Commerzbank AG 875 189,367
Deutsche Bank AG 8,480 406,187
Dresdner Bank AG Ord. 2,000 50,295
843,594
INSURANCE - 4.2%
Marschollek Lautenschlaeger und
Partner AG 70 76,318
Munich Reinsurance AG (Reg.) 100 181,492
257,810
TOTAL FINANCE 1,101,404
HEALTH - 7.8%
DRUGS & PHARMACEUTICALS - 4.9%
Altana AG 60 36,977
Schering AG 2,800 205,647
Schwarz Pharma AG 1,000 61,041
303,665

SHARES VALUE (NOTE 1)
MEDICAL EQUIPMENT & SUPPLIES - 2.3%
Gehe AG 250 $ 144,279
MEDICAL FACILITIES MANAGEMENT - 0.6%
Rhoen Klinikum AG 300 36,233
TOTAL HEALTH 484,177
INDUSTRIAL MACHINERY & EQUIPMENT - 6.7%
ELECTRICAL EQUIPMENT - 5.3%
Siemens AG 604 330,559
INDUSTRIAL MACHINERY & EQUIPMENT - 1.4%
AGIV AG Fuer Industrie & Verkehrswesen 4,000 85,131
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 415,690
MEDIA & LEISURE - 1.1%
PUBLISHING - 1.1%
Springer Axel Verlag AG (Reg.) 102 65,592
RETAIL & WHOLESALE - 3.6%
GENERAL MERCHANDISE STORES - 3.6%
Asko 150 89,114
Hornbach Baumarket AG (Bearer) 500 18,933
Karstadt AG 300 111,990
220,037
TRANSPORTATION - 2.6%
AIR TRANSPORTATION - 2.6%
Lufthansa 1,000 158,512
UTILITIES - 7.0%
ELECTRIC UTILITY - 7.0%
EVN (Energie-Versor Nieder) 300 43,849
Veba AG Ord. 7,800 387,518
431,367
TOTAL COMMON STOCKS
(Cost $4,881,834) 5,021,388
NONCONVERTIBLE PREFERRED STOCKS - 18.8%
BASIC INDUSTRIES - 0.7%
CHEMICALS & PLASTICS - 0.7%
Henkel KGAA 120 45,987
DURABLES - 10.4%
AUTOS, TIRES, & ACCESSORIES - 8.5%
Porsche AG (a) 450 245,895
Volkswagen AG 4% 1,100 279,354
525,249
TEXTILES & APPAREL - 1.9%
Boss (Hugo) AG 65 64,926
Puma AG 150 51,901
116,827
TOTAL DURABLES 642,076
FINANCE - 0.5%
BANKS - 0.5%
Creditanstalt Bankverein 550 30,676
HEALTH - 0.2%
DRUGS & PHARMACEUTICALS - 0.2%
Biotest AG 30 10,204
NONCONVERTIBLE PREFERRED STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
RETAIL & WHOLESALE - 2.3%
GENERAL MERCHANDISE STORES - 1.4%
Kaufhof Holding AG 380 $ 90,302
GROCERY STORES - 0.4%
Spar Handels AG 115 23,124
RETAIL & WHOLESALE, MISCELLANEOUS - 0.5%
Hornbach AG 500 31,990
TOTAL RETAIL & WHOLESALE 145,416
UTILITIES - 4.7%
ELECTRIC UTILITY - 4.7%
RWE AG 10,000 290,844
TOTAL NONCONVERTIBLE PREFERRED STOCKS
(Cost $1,162,074) 1,165,203
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $6,043,908) $ 6,186,591
LEGEND
(a) Non-income producing
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $7,507,850 and $1,457,076, respectively.
The fund placed a portion of its portfolio transactions with brokerage
firms which are affiliates of FMR. The commissions paid to these affiliated
firms were $2,507 for the period.
INCOME TAX INFORMATION
At April 30, 1996, the aggregate cost of investment securities for income
tax purposes was $6,043,908. Net unrealized appreciation aggregated
$142,683, of which $320,568 related to appreciated investment securities
and $177,885 related to depreciated investment securities.
GERMANY
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996 (UNAUDITED)

ASSETS

Investment in $ 6,186,591
securities, at
value
(cost
$6,043,908)
- - See
accompanyin
g schedule

Receivable for 233,239
investments
sold

Receivable for 3,390
fund shares
sold

Prepaid 14,089
expenses

Receivable 9,378
from
investment
adviser for
expense
reductions

TOTAL ASSETS 6,446,687

LIABILITIES

Payable to $ 125,244
custodian
bank

Payable for 91,958
investments
purchased

Payable for 19,530
fund shares
redeemed

Other payables 23,135
and
accrued
expenses

TOTAL 259,867
LIABILITIES

NET ASSETS $ 6,186,820

Net Assets
consist of:

Paid in capital $ 6,067,504

Accumulated (16,296
net )
investment
(loss)

Accumulated (7,056
undistributed )
net realized
gain (loss) on
investments
and foreign
currency
transactions

Net unrealized 142,668
appreciation
(depreciation
) on
investments
and assets
and liabilities
in
foreign
currencies

NET ASSETS, for $ 6,186,820
588,780
shares
outstanding

NET ASSET $10.51
VALUE and
redemption
price per
share
($6,186,820
(divided by) 588,780
shares)

Maximum $10.84
offering price
per share
(100/97.00 of
$10.51)

STATEMENT OF OPERATIONS
NOVEMBER 1, 1995 (COMMENCEMENT OF
OPERATIONS) TO
APRIL 30, 1996 (UNAUDITED)

INVESTMENT $ 23,428
INCOME
Dividends

Interest 4,999

28,427

Less foreign (2,343
taxes )
withheld

TOTAL 26,084
INCOME

EXPENSES

Management $ 16,344
fee

Transfer agent 6,747
fees

Accounting 27,322
fees and
expenses

Non-interested 5
trustees'
compensatio
n

Custodian fees 20,016
and
expenses

Registration 20,296
fees

Audit 14,452

Total 105,182
expenses
before
reductions

Expense (62,802 42,380
reductions )

NET (16,296
INVESTMENT )
INCOME
(LOSS)

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

Investment (6,866
securities )

Foreign (190 (7,056
currency ) )
transactions

Change in net
unrealized
appreciation
(depreciation
) on:

Investment 142,683
securities

Assets and (15 142,668
liabilities in )
foreign
currencies

NET GAIN (LOSS) 135,612

NET INCREASE $ 119,316
(DECREASE)
IN NET ASSETS
RESULTING
FROM
OPERATIONS

OTHER $ 35,750
INFORMATION
Sales
charges paid
to FDC

Expense $ 171
reductions
Custodian
interest
credits

Transfer 10
agent
interest
credits

FMR 62,621
reimburseme
nt

$ 62,802

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS NOVEMBER 1, 1995
(COMMENCEMENT
OF OPERATIONS) TO
APRIL 30, 1996
(UNAUDITED)

Operations $ (16,296
Net )
investment
income (loss)

Net realized (7,056
gain (loss) )

Change in 142,668
net
unrealized
appreciation
(depreciation
)

NET INCREASE 119,316
(DECREASE)
IN NET
ASSETS
RESULTING
FROM
OPERATIONS

Share 7,289,958
transactions
Net proceeds
from sales of
shares

Cost of (1,232,853
shares )
redeemed

Redemption 10,399
fees

NET INCREASE 6,067,504
(DECREASE)
IN NET
ASSETS
RESULTING
FROM SHARE
TRANSACTIO
NS

TOTAL 6,186,820
INCREASE
(DECREASE)
IN NET ASSETS

NET ASSETS

Beginning of -
period

End of period $ 6,186,820
(including
accumulated
net
investment
loss of
$16,296)

OTHER
INFORMATION
Shares

Sold 704,316

Redeemed (115,536
)

Net increase 588,780
(decrease)

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

</TABLE>

FINANCIAL HIGHLIGHTS
NOVEMBER 1, 1995
(COMMENCEMENT
OF OPERATIONS) TO
APRIL 30, 1996

SELECTED PER-SHARE DATA (UNAUDITED)

Net asset $ 10.00
value,
beginning of
period

Income from
Investment
Operations

Net (.03)
investment
income (loss)

Net realized .52
and
unrealized
gain (loss)

Total from .49
investment
operations

Redemption .02
fees added to
paid in
capital

Net asset $ 10.51
value, end of
period

TOTAL RETURN B, 5.10%
C

RATIOS AND
SUPPLEMENT
AL DATA

Net assets, $ 6,187
end of period
(000 omitted)

Ratio of 2.00% A, D
expenses to
average net
assets

Ratio of net (.77)% A
investment
income (loss)
to average
net assets

Portfolio 74% A
turnover rate

Average $ .2294
commission
rate E

HONG KONG AND CHINA
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (income) and capital gains (the profits the
fund earns when it sells securities that have grown in value). The fund has
a 3% sales charge. If Fidelity had not reimbursed certain fund expenses
during the period shown, the total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIOD ENDED PAST 6
APRIL 30, 1996 MONTHS
*

HONG KONG AND CHINA 11.51%

HONG KONG AND CHINA (INCL. 3% SALES CHARGE) 8.17%

Hang Seng Index 13.79%

Pacific Ex-Japan Funds Average 11.34%

LIFE OF FUND.
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months (since the fund started on
November 1, 1995). For example, if you invested $1,000 in a fund that had a
5% return over the past year, the value of your investment would be $1,050.
You can compare the fund's returns to the performance of the Hang Seng
Index - an unmanaged capitalization weighted index of total return
performance of the top 33 companies on the Hang Seng. You can also compare
the fund's performance to the Pacific Ex-Japan funds average, which
reflects the performance of 51 funds with similar objectives tracked by
Lipper Analytical Services during the period shown. These benchmarks
include reinvested dividends and capital gains, if any, and exclude the
effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year. In the fund's next report we'll report these
numbers for the fund and the benchmarks.
$10,000 OVER LIFE OF FUND

The growth of a hypothetical $10,000 INVESTMENT in the fund will appear in
the fund's next report.

An interview with Joseph Tse, Portfolio Manager of Fidelity Hong Kong and
China Fund
Q. HOW DID THE FUND PERFORM, JOSEPH?
A. The fund had a total return of 11.51% from its inception date - November
1, 1995 - through April 30, 1996. During that same period, the Pacific
Ex-Japan funds average returned 11.34%, according to Lipper Analytical
Services, and the Hang Seng Index returned 13.79%.
Q. WHAT WAS THE INVESTING ENVIRONMENT LIKE IN THE REGION OVER THE PAST SIX
MONTHS?
A. The Hong Kong stock market did quite well, primarily led by overseas
funds flowing into Asia, and especially into Hong Kong. The fund was a
recipient of these inflows, and has grown more quickly than expected.
Therefore, the average cash balance during the period was higher than I
desired - hovering around 7%, rather than the 3% I prefer. This
higher-than-desired level of cash hurt the fund's performance by keeping it
from fully participating in the strong Hong Kong stock market.
Q. IT SEEMS LIKE THE LESS FUNDAMENTALLY SOUND COMPANIES WERE THE MARKET
LEADERS DURING MUCH OF THE PERIOD.
A. That's an accurate statement for at least the first half of the period.
The stage was set for these stocks to rally in 1995 when the stock market
was up about 20%, led by the more fundamentally sound firms within the
large-cap sector. As new funds continued to flow in over the past six
months, I directed them toward the less-sound companies - those whose
stocks did not gain as substantially during the 1995 rally. But over the
past month or two, the more fundamentally sound companies began to rebound
and led the market forward in the later stages of the fund's reporting
period.
Q. WHAT ARE THE KEY SECTORS OF THE HONG KONG AND CHINA MARKET?
A. There are really only four major sectors in the Hang Seng Index
benchmark for the market - property stocks, which are about 40% of the
stock market; banks, at about 20%-25%; conglomerates are another 20% or so;
and utilities are the last 15% to 20%. Behind these major sectors are a
host of smaller-cap companies. But on a risk-reward basis, the smaller
companies haven't done as well as the larger cap companies. I believe their
managements and fundamentals generally are just not as sound.
Q. SO WHAT WAS YOUR INVESTMENT STRATEGY DURING THE FUND'S FIRST REPORTING
PERIOD?
A. As I indicated earlier, the fund had a large-cap weighting, although it
did pretty well investing in small caps at the outset of the period. As the
fund grew, though, its percentage invested in small caps dropped
significantly, and they haven't been an important part of the holdings in
some time. The fund's largest holdings at the end of the period were in the
property sector, adding up to about 35% of the fund's total investments.
The phenomenon here in Hong Kong is that land is a finite resource and
people have very small places to live in. On the demand side, many people
desperately want to trade up to live a little more comfortably. With
population growth of about 2% per annum, including immigrants from China,
it creates very steady demand. On the supply side, the land is limited.
People spend about 50% of their monthly income on property and they're
willing to do so. For these reasons then, property developers historically
have outperformed the benchmark of the general stock market. During the
period, Sun Hung Kai Properties - a property developer and the fund's
second-largest holding - performed well, as did Henderson Land Development.
Cheung Kong Holdings - another property developer - also did well.
Q. THE FINANCE SECTOR WAS YOUR SECOND LARGEST AREA OF CONCENTRATION. HOW
DID THIS WORK OUT FOR THE FUND?
A. The finance sector of the Hang Seng Index includes three major banks -
Hong Kong and Shanghai Bank (HSBC), which was the fund's largest holding at
the end of the period, Hang Seng Bank and Bank of East Asia. Together,
these three holdings make up about 25% of the fund's benchmark index. The
fund's banking holdings - including HSBC, Heng Seng Bank and Wing Hang Bank
- - comprised just under 20% of investments at the end of the period. The
sector did very well over the past six months, with loan growth increasing
about 20% per annum. Hang Seng Bank, in particular, performed very well
during the period.
Q. THE FUND OWNED COMPANIES WITH DIVERSIFIED HOLDINGS - SUCH AS HUTCHISON
WHAMPOA, YOUR THIRD-LARGEST INVESTMENT.
A. Hutchison Whampoa has been a good example of why I've liked the more
diversified companies and another example of why the fund was more heavily
invested in larger-cap companies. The larger diversified companies are
involved in many different businesses, including ports, cellular and
fixed-line telephone services, retailing, and infrastructure development.
Because of their excellent connections and their very deep pockets, they
have major advantages over smaller companies in moving into new
geographical markets - such as China - and into new lines of business. Most
big companies are getting bigger, not just in this sector, but across the
market in Hong Kong. It's the big companies that generally are winning all
the good projects in both Hong Kong and China. And I think this trend will
continue in this region. Holding company Jardine Matheson, a diversified
company with interests in trading, distribution, hotels and restaurants,
property, financial services and retail, also performed well. This company
was a turnaround situation.
Q. WHAT IS THE FUND'S EXPOSURE TO CHINA?
A. The fund's direct exposure to China was near zero. The companies whose
stocks trade in China consistently have reported earnings well below
expectations. To me, these businesses are just not competitive, they are
not run professionally and they are not run to maximize shareholder value.
The fund's exposure to China comes through its investments in Hong
Kong-based companies - including Hutchison Whampoa through its investments
in Chinese ports, and New World Development through its investments in toll
roads, bridges, power plants and government housing. While these companies
generate just a small portion of their overall revenues from China,
Goldlion - a branded garment manufacturer and wholesaler based in Hong Kong
- - garners the majority of its business from the mainland.
Q. WHAT WERE THE DISAPPOINTMENTS?
A. The major disappointment was CEPA - Consolidated Electric Power Asia -
most of which I've sold. CEPA is an independent power producer that had
good fundamentals. However, operational problems and political problems
hurt the stock during the period. It seemed to be just one problem after
another. I also wish the fund had owned more Hang Seng Bank, which
performed very well during the period. Property investment companies - as
opposed to the property developers - also disappointed, as they were in a
down cycle during much of the period. I'm trying to anticipate the bottom
of this market to gain the full potential of its rebound.
Q. WHAT'S YOUR OUTLOOK FOR THE NEXT SEVERAL MONTHS?
A. I think people will be increasingly bullish about this region as we move
closer to Hong Kong coming under Chinese control. I believe the Hong Kong
market has been selling at a discount for some years due to the uncertainty
of the changeover coming in June 1997. Hong Kong's P/E (price to earnings)
multiple has been around 10-12X for some time, compared to P/Es closer to
20X for our regional counterparts, including Malaysia, Thailand and
Singapore. After the changeover to official Chinese rule, I think that
discount will be removed. Remember, Hong Kong is China and China is Hong
Kong, and one of the best ways to invest in China is to invest in Hong
Kong. Hong Kong and China have similar growth rates to these other regions,
but this region is valued lower because of the concerns about next year's
changeover.

FUND FACTS
GOAL: long-term growth of capital by investing
mainly in equity securities of Hong Kong and
Chinese issuers
START DATE: November 1, 1995
TRADING SYMBOL: FHKCX
SIZE: as of April 30, 1996, more than $75 million
MANAGER: Joseph Tse, since November 1995;
director of research, Fidelity Investments
Management [Hong Kong], since 1994; manager,
Asian portion of various global equity funds, since
1993; analyst covering Hong Kong and Chinese
equities, 1990 to 1993; joined Fidelity in 1990
(checkmark)
JOSEPH TSE ON INVESTING IN THE HONG KONG/CHINA
REGION:
"Shareholders should understand that Hong Kong is
not that big or diverse a securities market. Of the
approximately 500 stocks listed in Hong Kong, only
about 50 are very actively traded. With the fund
growing to its current size very quickly, I felt I had to be
in large caps to be able to move in and out of stocks
easily and maintain the fund's liquidity and flexibility.
That's why the fund's major holdings - regardless of
the sector - have been larger-cap stocks.
"I also prefer to invest in growth companies and,
because of the characteristics of this market, I prefer
strategically well-positioned companies.
Sometimes I have to be a little bit lenient on the pricing
because my universe is relatively small and there
aren't that many alternatives. So I'm sometimes
forced to invest in companies with P/Es higher than
I would like. I also look for quality management
teams with a commitment to the long-term
prosperity of this region. I think the value approach is
not appropriate to this market. This is a growth
market. Value stocks do well when the market goes
down, and the market has tended to go up here.
Interestingly, if I were to take the value approach, the
fund's holdings would be very different, comprised
mainly of small-cap stocks, not the larger
companies. I'd be holding hundreds of companies
that are very cheap. But I think the risk-reward would
be very bad. My style is driven by my universe -
and in Hong Kong and China, growth is the key
factor. If I were in another market, I might be a value
investor, but not here."
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
HONG KONG AND CHINA
INVESTMENT SUMMARY

GEOGRAPHIC DIVERSIFICATION
AS OF APRIL 30, 1996
Other 3.6%
Row: 1, Col: 1, Value: 3.6
Row: 1, Col: 2, Value: 96.40000000000001
Hong Kong 96.4%
ASSET ALLOCATION
% OF FUND'S
INVESTMENTS

Stocks 98.3

Short-term investments 1.7

TOP TEN STOCKS
% OF FUND'S
INVESTMENTS

HSBC Holdings PLC 12.6
(Banks)

Sun Hung Kai Properties Ltd. 10.0
(Real Estate)

Hutchison Whampoa Ltd. Ord 8.8
(Electrical Equipment)

Cheung Kong Holdings Ltd. 6.1
(Real Estate)

Henderson Land Development Co. Ltd. 5.0
(Real Estate)

Hang Seng Bank Ltd. 5.0
(Banks)

Wharf Holdings Ltd. 4.9
(Real Estate)

Great Eagle Holdings Ltd. 4.2
(Real Estate)

Jardine Matheson Holdings Ltd. Ord. 4.1
(Holding Companies)

Hong Kong & China Gas Co. Ltd. 3.6
(Gas)

TOP TEN MARKET SECTORS
% OF FUND'S
INVESTMENTS

Construction & Real Estate 35.8

Finance 22.2

Industrial Machinery & Equipment 10.0

Holding Companies 9.9

Utilities 8.5

Transportation 4.3

Media & Leisure 4.1

Retail & Wholesale 2.3

Nondurables 1.0

Basic Industries 0.2

HONG KONG AND CHINA
INVESTMENTS APRIL 30, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 98.3%
SHARES VALUE (NOTE 1)
BASIC INDUSTRIES - 0.2%
IRON & STEEL - 0.2%
Maanshan Iron & Steel Co. Ltd. Class H 1,200,000 $ 178,394
CONSTRUCTION & REAL ESTATE - 35.8%
REAL ESTATE - 35.8%
Cheung Kong Holdings Ltd. 633,000 4,521,019
Great Eagle Holdings Ltd. 1,095,532 3,143,970
Henderson China Holdings Ltd. (a) 14,960 41,482
Henderson Land Development Co. Ltd. 514,000 3,687,708
Hon Kwok Land Investment Ltd. Ord. 100,000 34,903
Hysan Development Co. Ltd. 726,000 2,332,187
Hysan Development Co. Ltd.
(warrants) (a) 49,600 -
New World Development Co. 388,307 1,741,827
Sun Hung Kai Properties Ltd. 773,000 7,369,566
Wharf Holdings Ltd. (b) 975,000 3,611,018
26,483,680
DURABLES - 0.0%
AUTOS, TIRES, & ACCESSORIES - 0.0%
Sime Darby Hongkong Ltd. 36,000 34,903
FINANCE - 22.2%
BANKS - 19.7%
HSBC Holdings PLC 629,900 9,337,824
Hang Seng Bank Ltd. 362,000 3,673,488
Wing Hang Bank Ltd. 435,000 1,591,388
14,602,700
CREDIT & OTHER FINANCE - 1.2%
JCG Holdings Ltd. 939,000 867,905
INSURANCE - 1.3%
National Mutual Asia Ltd. 1,134,000 960,185
TOTAL FINANCE 16,430,790
HOLDING COMPANIES - 9.9%
Citic Pacific Ltd. Ord. 379,000 1,489,406
First Pacific Co. Ltd. 637,000 848,159
Jardine Matheson Holdings Ltd. Ord. 379,100 3,032,800
Jardine Strategic Holdings Ltd. Ord. 235,000 770,800
Wheelock & Co. Ltd. 571,000 1,166,255
7,307,420
INDUSTRIAL MACHINERY & EQUIPMENT - 10.0%
ELECTRICAL EQUIPMENT - 10.0%
Hutchison Whampoa Ltd. Ord. 1,052,000 6,527,657
Johnson Electric Holdings Ltd. 374,000 846,077
7,373,734
MEDIA & LEISURE - 4.1%
BROADCASTING - 0.9%
Television Broadcast Limited Ord. 158,000 633,168
LODGING & GAMING - 2.7%
Mandarin Oriental International Ltd. 801,000 1,137,420
Hong Kong & Shanghai Hotels 466,000 804,206
Sino Hotels Holdings Ltd. 348,000 92,222
2,033,848
PUBLISHING - 0.5%
Oriental Press Group Ltd. 790,000 367,646
TOTAL MEDIA & LEISURE 3,034,662
NONDURABLES - 1.0%
FOODS - 1.0%
Tingyi Holding Co. (a) 2,760,000 767,093

SHARES VALUE (NOTE 1)
RETAIL & WHOLESALE - 2.3%
APPAREL STORES - 1.0%
Goldlion Holdings Ltd. 842,000 $ 707,499
RETAIL & WHOLESALE, MISCELLANEOUS - 1.3%
Dickson Concepts International Ltd. 844,000 976,486
TOTAL RETAIL & WHOLESALE 1,683,985

TRANSPORTATION - 4.3%
AIR TRANSPORTATION - 3.6%
Swire Pacific Ltd. 380,000 515,790
Swire Pacific Ltd. Class A 255,500 2,179,893
2,695,683
TRUCKING & FREIGHT - 0.7%
New World Infrastructure Ltd. (a) 217,400 483,380
TOTAL TRANSPORTATION 3,179,063

UTILITIES - 8.5%
ELECTRIC UTILITY - 2.9%
Consolidated Electric Power Asia Ltd. 247,000 408,703
Hong Kong Electric Holdings Ord. 436,000 1,386,507
Huaneng Power International, Inc.
Class N sponsored ADR (a) 24,423 381,609
2,176,819
GAS - 3.6%
Hong Kong & China Gas Co. Ltd. 1,610,200 2,643,528
Hong Kong & China Gas Co. Ltd.
(warrants) (a) 135,600 -
2,643,528
TELEPHONE SERVICES - 2.0%
Hong Kong Telecommunications Ltd. 785,800 1,493,020
TOTAL UTILITIES 6,313,367
TOTAL COMMON STOCKS
(Cost $72,494,202) 72,787,091
REPURCHASE AGREEMENTS - 1.7%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.33%, dated
4/30/96 due 5/1/96 $ 1,262,187 1,262,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $73,756,202) $ 74,049,091
LEGEND
(a) Non-income producing
(b) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $3,611,018 or 4.8% of net
assets.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $89,041,181 and $16,786,635, respectively.
INCOME TAX INFORMATION
At April 30, 1996, the aggregate cost of investment securities for income
tax purposes was $73,756,202. Net unrealized appreciation aggregated
$292,889, of which $2,294,293 related to appreciated investment securities
and $2,001,404 related to depreciated investment securities.
HONG KONG AND CHINA
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996 (UNAUDITED)

ASSETS

Investment in $ 74,049,091
securities, at
value
(including
repurchase
agreements
of
$1,262,000)
(cost
$73,756,202)
- - See
accompanyin
g schedule

Cash 251

Receivable for 1,270,539
investments
sold

Receivable for 466,460
fund shares
sold

Dividends 615,073
receivable

Redemption 3,010
fees
receivable

Prepaid 14,089
expenses

TOTAL ASSETS 76,418,513

LIABILITIES

Payable for $ 619,011
investments
purchased

Payable for 406,041
fund shares
redeemed

Accrued 47,366
management
fee

Other payables 85,448
and
accrued
expenses

TOTAL 1,157,866
LIABILITIES

NET ASSETS $ 75,260,647

Net Assets
consist of:

Paid in capital $ 74,164,796

Undistributed 563,811
net
investment
income

Accumulated 239,291
undistributed
net realized
gain (loss) on
investments
and foreign
currency
transactions

Net unrealized 292,749
appreciation
(depreciation
) on
investments
and assets
and liabilities
in
foreign
currencies

NET ASSETS, for $ 75,260,647
6,753,957
shares
outstanding

NET ASSET $11.14
VALUE and
redemption
price per
share
($75,260,647
(divided by) 6,753,957
shares)

Maximum $11.48
offering price
per share
(100/97.00 of
$11.14)

STATEMENT OF OPERATIONS
NOVEMBER 1, 1995 (COMMENCEMENT OF
OPERATIONS) TO
APRIL 30, 1996 (UNAUDITED)

INVESTMENT $ 882,386
INCOME
Dividends

Interest 98,453

980,839

Less foreign (35,440
taxes )
withheld

TOTAL 945,399
INCOME

EXPENSES

Management $ 142,529
fee

Transfer agent 63,302
fees

Accounting 27,323
fees and
expenses

Non-interested 34
trustees'
compensatio
n

Custodian fees 82,838
and
expenses

Registration 47,824
fees

Audit 15,000

Total 378,850
expenses
before
reductions

Expense (8,559 370,291
reductions )

NET 575,108
INVESTMENT
INCOME

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

Investment 239,656
securities

Foreign (365 239,291
currency )
transactions

Change in net
unrealized
appreciation
(depreciation
) on:

Investment 292,889
securities

Assets and (140 292,749
liabilities in )
foreign
currencies

NET GAIN (LOSS) 532,040

NET INCREASE $ 1,107,148
(DECREASE)
IN NET ASSETS
RESULTING
FROM
OPERATIONS

OTHER $ 423,436
INFORMATION
Sales
charges paid
to FDC

Expense $ 232
reductions
Transfer
agent
interest
credits

FMR 8,327
reimburseme
nt

$ 8,559

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS NOVEMBER 1, 1995
(COMMENCEMENT
OF
OPERATIONS) TO
APRIL 30, 1996
(UNAUDITED)

Operations $ 575,108
Net
investment
income

Net realized 239,291
gain (loss)

Change in 292,749
net
unrealized
appreciation
(depreciation
)

NET INCREASE 1,107,148
(DECREASE)
IN NET
ASSETS
RESULTING
FROM
OPERATIONS

Distributions to (11,297)
shareholders
from net
investment
income

Share 93,120,162
transactions
Net proceeds
from sales of
shares

Reinvestmen 11,187
t of
distributions

Cost of (19,142,555)
shares
redeemed

Redemption 176,002
fees

NET INCREASE 74,164,796
(DECREASE)
IN NET
ASSETS
RESULTING
FROM SHARE
TRANSACTIO
NS

TOTAL 75,260,647
INCREASE
(DECREASE)
IN NET ASSETS

NET ASSETS

Beginning of -
period

End of period $ 75,260,647
(including
undistribute
d net
investment
income of
$563,811)

OTHER
INFORMATION
Shares

Sold 8,492,144

Issued in 1,110
reinvestment
of
distributions

Redeemed (1,739,297)

Net increase 6,753,957
(decrease)

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

</TABLE>

FINANCIAL HIGHLIGHTS
NOVEMBER 1, 1995
(COMMENCEMENT
OF
OPERATIONS) TO
APRIL 30, 1996

(UNAUDITED)

SELECTED $ 10.00
PER-SHARE DATA
Net asset
value,
beginning of
peiod

Income from
Investment
Operations

Net .17 F
investment
income

Net realized .93
and
unrealized
gain (loss)

Total from 1.10
investment
operations

Less (.01)
Distributions
From net
investment
income

Redemption .05
fees added to
paid in
capital

Net asset $ 11.14
value, end of
period

TOTAL RETURN B, 11.51%
C

RATIOS AND
SUPPLEMENT
AL DATA

Net assets, $ 75,261
end of period
(000 omitted)

Ratio of 2.00% A,
expenses to D
average net
assets

Ratio of net 3.10% A
investment
income to
average net
assets

Portfolio 96% A
turnover rate

Average $ .0066
commission
rate E

JAPAN
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (income) and capital gains (the profits the
fund earns when it sells securities that have grown in value). The fund has
a 3% sales charge. If Fidelity had not reimbused certain fund expenses, the
life of fund total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED PAST 6 PAST 1 LIFE OF
APRIL 30, 1996 MONTHS YEAR FUND

JAPAN 12.58% 8.54% 44.50%

JAPAN (INCL. 3% SALES CHARGE) 9.21% 5.28% 40.16%

Tokyo Stock Price Index 18.87% 3.94% 51.15%

Japanese Funds Average 14.97% 11.59% n/a

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year or since the fund
started on September 15, 1992. For example, if you invested $1,000 in a
fund that had a 5% return over the past year, the value of your investment
would be $1,050. You can compare the fund's returns to the performance of
the Tokyo Stock Price Index - a broad measure of the Japanese stock
market's performance, similar to the Standard & Poor's 500 Index in the
U.S. To measure how the fund's performance stacked up against its peers,
you can compare it to the Japanese funds average, which reflects the
performance of 14 funds with similar objectives - in this case, a very
small peer group - tracked by Lipper Analytical Services over the past six
months. These benchmarks include reinvested dividends and capital gains, if
any, and exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED PAST 1 LIFE OF
APRIL 30, 1996 YEAR FUND

JAPAN 8.54% 10.68%

JAPAN (INCL. 3% SALES CHARGE) 5.28% 9.76%

Tokyo Stock Price Index 3.94% 12.06%

Japanese Funds Average 11.59% n/a

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND

Japan Fund
Tokyo Stock Price Index
$15,115
$14,016
$
'96
Let's say you invested $10,000 in Fidelity Japan Fund on September 15,
1992, when the fund started and paid the 3% sales charge. By April 30,
1996, the value of your investment would have grown to $14,016 - a 40.16%
increase on your initial investment. That compares to $10,000 invested in
the Tokyo Stock Price Index, which would have grown to $15,115 over the
same period - a 51.15% increase.

An interview with Shigeki Makino, Portfolio Manager of Fidelity Japan Fund
Q. SHIGEKI, HOW HAS THE FUND PERFORMED?
A. The fund had a total return of 12.58% for the six months ended April 30,
1996, underperforming the Tokyo Stock Price Index (TOPIX) - a measure of
the overall performance of the Japanese stock market - which returned
18.87% over the same period. In addition, the fund trailed the 14.97%
return of the Japanese funds average tracked by Lipper Analytical Services
over the same six-month period. For the 12 months ended April 30, 1996, the
fund had a total return of 8.54%, while the TOPIX returned 3.94% and the
Japanese funds average posted a total return of 11.59%.
Q. WHY DID THE FUND'S SIX-MONTH PERFORMANCE TRAIL BOTH THE INDEX AND THE
LIPPER AVERAGE?
A. Looking at the fund's performance versus the index, it lagged for two
reasons. First, the Japanese market's strong rebound was aided by the
performance of less liquid, more speculative stocks of small-sized
companies. It's not unusual for small-company stocks to perform well during
an economic recovery. However, the fund had less invested in these kinds of
stocks, mainly because I found that the underlying business prospects of
the companies were poor and that the stocks' valuations were too high.
Second, the fund had more invested in technology stocks than the index
during much of the period. These stocks helped the fund post returns better
than the index through the end of October, but provided subpar performance
from November on, even though I pared back the technology stake from 29.7%
at the beginning of the period to 11.7% at the end of April. The fund's
underperformance relative to the Japanese funds average was mostly a result
of yen depreciation versus the dollar. While other funds probably hedged at
least part of their currency risk, the Japan Fund did not. As a result, the
yen depreciation ate away at some of the fund's investment gains.
Q. YOU MENTIONED THAT THE JAPANESE MARKET REBOUNDED AND THE ECONOMY STARTED
TO RECOVER DURING THE PERIOD. WHY WAS THAT?
A. In addition to the dramatic yen weakening that took place from May until
October, there were a number of factors that helped both the market and the
economy. First, the Bank of Japan and the Ministry of Finance have
implemented policies designed to help the economy recover from what has
been about a five-year funk. Most importantly, interest rates have been
kept quite low in order to stimulate economic growth. In addition, it
appeared that the banking industry was successfully working its way through
the crisis that has plagued it over the past few years. Finally, the
Japanese stock market was helped by the continued focus in the corporate
world on maximizing shareholder value. From October on, there were a number
of formal announcements of share buybacks, which generally are viewed as
beneficial to shareholders because they tend to increase the value of the
outstanding issues.
Q. HOW HAS THE ECONOMIC RECOVERY AFFECTED THE FUND?
A. The gradual improvement in the economy has helped the fund because the
fund was positioned to take advantage of an economic recovery, with
significant investments in manufacturing and basic industries and less
invested in interest-rate-sensitive or defensive issues. In addition, it's
important for shareholders to understand that the value of the yen relative
to the dollar has a direct impact on the fund. Should the yen continue to
depreciate, the value of the fund's holdings would depreciate as well. At
the same time, a depreciating yen has a beneficial impact on the overall
economy and the fund's holdings, some of which are focused on export
sectors such as transporation and electronics. That's because dollar sales
for exporters get translated back into more yen, leading to more profits.
These profits improve the performance of the manufacturing sector as a
whole and, indirectly, the economy. Economically sensitive issues are big
beneficiaries of yen weakness, while interest-rate-sensitive stocks would
be hurt by yen weakness to the extent that a better economy and resultant
inflation would cause increases in interest rates. As I said, the portfolio
is structured with a focus on exporters and manufacturers because I feel
they will outperform should the yen continue to weaken or stay at current
levels.
Q. WHY DID YOU DECREASE THE FUND'S INVESTMENTS IN TECHNOLOGY?
A. Around the beginning of November, our research showed that the industry
had come close to or reached its peak in this business cycle, so I started
selling technology stocks. I then took the assets from these sales and
applied them mainly to purchases in the finance sector, and, specifically,
bank stocks. While these stocks appeared overvalued on a traditional
valuation basis such as price-to-earnings ratios, I found them to be cheap
when looking at their market value compared to their deposits - both on a
historical basis and versus U.S. competitors. If one assumes that deposits
are what banks use to fund loans - the way banks make money - then I
believe this method is an effective way to judge banks' long-term potential
to make money. In addition, sentiment was very negative toward banks, and
that can be a good time to buy. Further, most banks had done a good job
cutting costs, and their balance sheets were improving. Thus, I added
stocks such as Sakura Bank and Mitsui Trust.
Q. WHICH STOCKS HAVE TURNED IN ESPECIALLY GOOD PERFORMANCES FOR THE FUND?
A. Fuji Photo Film was one. The weaker yen helped earnings growth from
overseas sales, and the economic recovery helped increase sales of its
offset printing plates. In addition, the company has shown signs of
becoming more shareholder friendly by indicating it might raise the
dividend and buy back stock. Fuji also has used some of its significant
free cash flow to expand overseas production. Kobe Steel was another solid
contributor, helped by cost cutting, improved shareholder relations and
drops in inventory levels. And Daito Trust, an apartment developer,
benefited from positive trends in orders and a cheap valuation.
Q. WHAT'S YOUR OUTLOOK?
A. The Japanese market has gone up dramatically. With that in mind, the
individual valuations of stocks seem rather high. As a result, I've
continued to focus on more long-term investment ideas - over two or three
years - as opposed to short-term moves. If share prices go down, then I
will be presented with buying opportunities. There are some risks that we
will see a short-term correction in stock prices, even though this recovery
is more broadly based than those we've seen in the past. As a result,
shareholders may see increasing investments in individual stocks that are
more long-term in orientation. These stocks will include those whose
business, management or growth prospects are attractive to me. I don't
intend to buy stocks strictly because I find them to be cheap, and then
wait for the market to appreciate their fair value.

FUND FACTS
GOAL: long-term growth of capital by
investing mainly in equity securities of
Japanese issuers
START DATE: September 15, 1992
TRADING SYMBOL: FJAPX
SIZE: as of April 30, 1996, more than
$428 million
MANAGER: Shigeki Makino, since 1994;
manager, Fidelity Pacific Basin, since May
1996; analyst, Fidelity Japan Fund,
1993-1994; joined Fidelity in 1990
(checkmark)
SHIGEKI MAKINO ON THE JAPANESE MARKET'S EMERGENCE
FROM AN EXTENDED BEAR MARKET:
"The Japanese market is just now emerging from an
extended period of poor performance. The bear
market was caused by excesses in the way
business was being done in the late 1980s, with
overbuilding and speculative investing. Everything
turned sour when interest rates went up. At the same
time, the economic problems signaled a major
change in Japan. From the 1960s through the
1980s, Japan built its infrastructure, global presence
and global competitiveness at a rapid clip. The
Japanese social structure, with its emphasis on
efficiency and cooperation, was ideally suited to help
the country create manufacturing processes that
were some of the best in the world.
"But things changed. Southeast Asia is now a
cheaper place in which to produce goods, and
technology there has improved such that even if
the Japanese were to improve the efficiency of their
processes, they could not be cost competitive. By the
start of this decade, Japan had reached a point where
it had to change from a manufacturing-oriented
society to a more white collar service-oriented
society, much like the U.S. did in the late 1970s and
early 1980s. It has taken the U.S. about a decade to
adjust, and it will probably take Japan just as long.
"The good news is that Japan is about halfway
through that decade, but there is a long way to go.
Management is starting to change its mentality from
one that focuses on sales maximization to one that
tries to achieve the maximization of shareholder
value. To compete, Japanese companies must
utilize their cash assets to pay down debt, buy back
shares, increase the dividend or merge and acquire.
"These are the kinds of things that have started to
change at the corporate level. While we've seen
some short-term recoveries over the past five years,
I find this latest one to be a bit different. The banking
industry has come to grips with its crisis and is
working through it, and the Bank of Japan has been
accommodating in terms of trying to help the market
and the economy. The recovery has been very
broad-based. With interest rates at historical lows,
and companies becoming more
shareholder-friendly, Japan has become more
attractive to foreign investors. While the market's
rebound has been helped by a level of foreign
investment that is at an all-time high - representing
ownership of about 10% of the market - the level of
investible money reaching Japan is still relatively
low, especially considering the record amount of
money in mutual funds worldwide. Foreign
ownership has created changes at the management
level regarding the treatment of shareholders and, if
more money comes in, that trend should continue."
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
JAPAN
INVESTMENT CHANGES

GEOGRAPHIC DIVERSIFICATION
AS OF APRIL 30, 1996

Other 1.8%
United States 4.3%
Row: 1, Col: 1, Value: 4.3
Row: 1, Col: 2, Value: 1.8
Row: 1, Col: 3, Value: 93.90000000000001
Japan 93.9%
AS OF OCTOBER 31, 1995
United States 1.7%
Other 3.1%
Row: 1, Col: 1, Value: 1.7
Row: 1, Col: 2, Value: 3.1
Row: 1, Col: 3, Value: 95.2
Japan 95.2%
ASSET ALLOCATION
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Stocks, closed-end investment
companies and equity futures 95.6 97.4

Bonds 1.3 0.9

Short-term investments 3.1 1.7

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

Fuji Photo Film Co. Ltd. 2.8 3.4
(Photographic Equipment)

Toyota Motor Corp. 2.4 0.6
(Autos, Tires, & Accessories)

Sakura Bank Ltd. 2.4 0.0
(Banks)

Mitsui Trust and Banking Co. Ltd. 2.4 0.0
(Banks)

Matsushita Electric Industrial Co. Ltd. 2.3 2.4
(Consumer Electronics)

Kobe Steel Ltd. Ord. 2.2 1.6
(Iron & Steel)

Omron Corp. 2.1 5.3
(Electrical Equipment)

Nomura Securities Co. Ltd. 2.0 2.1
(Securities Industry)

Honda Motor Co. Ltd. 2.0 2.5
(Autos, Tires, & Accessories)

Hitachi Ltd. 2.0 4.7
(Electronics)

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

Durables 15.8 14.8

Finance 15.7 8.5

Technology 11.7 29.7

Basic Industries 10.2 4.7

Construction & Real Estate 9.6 2.2

Industrial Machinery & Equipment 9.3 15.7

Retail & Wholesale 6.1 6.7

Health 5.4 4.1

Nondurables 2.7 0.6

Media & Leisure 2.1 4.0

JAPAN
INVESTMENTS APRIL 30, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 91.8%
SHARES VALUE (NOTE 1)
BASIC INDUSTRIES - 10.2%
CHEMICALS & PLASTICS - 6.3%
Aronkasei Co. Ltd. 12,000 $ 167,752
Denki Kagaku Kogyo Kk 600,000 2,310,874
Nippon Shokubai Co. Ltd. 600,000 6,504,683
Nippon Zeon Co. Ltd. 560,000 3,557,415
Riken Vinyl Industry Co. Ltd. 150,000 1,554,848
Sakai Chemical Industry Co. Ltd. 200,000 1,464,505
Sekisui Chemical Co. Ltd. 548,000 6,878,988
Shin-Etsu Chemical Co. Ltd. 120,000 2,613,285
Tenma Corp. 70,000 1,717,465
26,769,815
IRON & STEEL - 3.9%
Bunka Shutter Co. Ltd. 230,000 1,749,798
Bunka Shutter Co. Ltd. (warrants) (a) 200 107,500
Godo Steel Ltd. 200,000 1,432,172
Kobe Steel Ltd. Ord. (a) 2,978,000 9,204,032
Nakayama Steel Works Ltd. 12,000 95,174
Sumitomo Metal Industries Ltd. 1,290,000 4,121,915
16,710,591
TOTAL BASIC INDUSTRIES 43,480,406
CONSTRUCTION & REAL ESTATE - 9.6%
BUILDING MATERIALS - 1.6%
Arc Land Sakamoto Co. Ltd. 200 2,396
Berger International 761,000 479,008
C.I. Holdings BHD 85,000 395,428
Chofu Seisaku Co. Ltd. 55,000 1,427,892
Maezawa Industries 80,000 2,168,228
National House Industrial Co. Ltd. 80,000 1,407,446
Toyo Shutter Co. Ltd. 100,000 1,055,585
6,935,983
CONSTRUCTION - 5.5%
Daiwa House Industry Co. Ltd. 325,000 5,161,428
Daito Trust Construction 293,100 4,320,337
Higashi Nihon House Co. Ltd. 90,000 1,454,995
JGC Corp. 100,000 1,274,309
Mitsui Wood Systems, Inc. 110,000 1,223,908
Nichiei Construction Co. Ltd. 230,000 2,909,039
Sho Bond Corp. Ord. 70,000 2,529,599
Sumitomo Forestry Co. Ltd. 150,000 2,296,610
Toda Construction Co. 200,000 2,168,228
23,338,453
ENGINEERING - 2.0%
Dai-Dan Co. Ltd. 160,000 2,677,952
Sanki Engineering Co. Ltd. 210,000 2,935,666
Takasago Thermal Engineering Co. 154,000 2,797,204
8,410,822
REAL ESTATE - 0.5%
Cesar Co. 120,000 1,186,819
Sumitomo Warehouse Co. Ltd. 150,000 1,102,658
2,289,477
TOTAL CONSTRUCTION & REAL ESTATE 40,974,735
DURABLES - 15.6%
AUTOS, TIRES, & ACCESSORIES - 7.2%
Bridgestone Corp. 350,000 6,457,134
Calsonic Corp. 185,000 1,574,580
Daido Metal Co. Ltd. 115,000 847,558
Honda Motor Co. Ltd. 382,000 8,682,231

SHARES VALUE (NOTE 1)
Nissan Motor Co. Ltd. Ord. 190,000 $ 1,597,261
Toyota Motor Corp. 458,000 10,409,586
Toyoda Gosei Co. 140,000 1,184,917
30,753,267
CONSUMER DURABLES - 1.0%
Aderans Co. Ltd. 183,000 4,350,720
CONSUMER ELECTRONICS - 4.9%
Citizen Watch Co. Ltd. Ord. 220,000 1,914,317
Makita Corp. 130,000 2,089,297
Matsushita Electric Industrial Co. Ltd. 569,000 10,010,460
Rinnai Corp. Ord. 100,000 2,491,560
Sony Corp. 70,400 4,552,518
21,058,152
HOME FURNISHINGS - 0.8%
Komatsu Wall Industry Co. Ltd. 47,000 965,432
Shimachu Co. Ltd. 77,000 2,599,496
3,564,928
TEXTILES & APPAREL - 1.7%
Danto Corp. 38,000 491,465
Komatsu Seiren Co. Ltd. 90,000 1,027,055
Maruko Co. Ltd. 20,000 1,780,229
Morishita Co. Ltd. 44,000 447,720
Roda Vivatex PT (For. Reg.) 661,000 489,682
Tokyo Style Co. Ltd. 100,000 1,768,817
Yagi Corp. 66,000 1,041,891
7,046,859
TOTAL DURABLES 66,773,926
ENERGY - 1.0%
OIL & GAS - 1.0%
Nippon Oil Co. Ltd. 600,000 4,136,750
FINANCE - 14.6%
BANKS - 8.8%
Akita Bank Ltd. 301,000 2,232,704
Bank of Tokyo-Mitsubishi Ltd. 241,500 5,557,795
Fuji Bank Ltd. 220,000 4,791,023
Mitsui Trust and Banking Co. Ltd. 856,000 10,256,859
Sakura Bank Ltd. 877,000 10,258,285
Sumitomo Trust & Banking Co. Ltd. 310,000 4,510,484
37,607,150
CREDIT & OTHER FINANCE - 1.7%
Acom Co. Ltd. 80,000 3,005,088
Nichiei Co. Ltd. 40,000 2,662,736
Promise Co. Ltd. 40,000 1,692,739
7,360,563
INSURANCE - 0.5%
Mitsui Marine & Fire Insurance 272,000 2,294,365
SECURITIES INDUSTRY - 3.6%
Daiwa Securities Co. Ltd. 370,000 5,664,971
Nomura Securities Co. Ltd. 401,000 8,694,593
Osaka Securities Finance Co. Ltd. Ord. 165,000 1,145,452
15,505,016
TOTAL FINANCE 62,767,094
HEALTH - 5.4%
DRUGS & PHARMACEUTICALS - 3.7%
Daiichi Pharmaceutical Co. Ltd. 130,000 2,175,836
Takeda Chemical Industries Ltd. 304,000 5,232,656
Yamanouchi Pharmaceutical Co. Ltd. 350,000 8,254,481
15,662,973
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
HEALTH - CONTINUED
MEDICAL EQUIPMENT & SUPPLIES - 1.7%
Hitachi Medical Corp. Ord. 90,000 $ 1,514,907
Hoya Corp. 87,000 3,061,195
Terumo Corporation 230,000 2,909,039
7,485,141
TOTAL HEALTH 23,148,114
INDUSTRIAL MACHINERY & EQUIPMENT - 9.3%
ELECTRICAL EQUIPMENT - 4.6%
Hitachi Koki Co. Ltd. Ord. 148,000 1,562,265
Mirai Industry Co. Ltd. 85,000 2,158,243
Mitsubishi Electric Co. Ord. 661,000 5,179,630
Omron Corp. 402,000 9,022,110
Yamatake Honeywell Co. Ltd. 100,000 1,882,935
19,805,183
INDUSTRIAL MACHINERY & EQUIPMENT - 4.7%
Aida Engineering Ltd. Ord. 172,000 1,635,681
Amada Metrecs Co. Ltd. 110,000 1,809,709
Amadasonoike Co. Ltd. 146,000 1,089,915
Komatsu Ltd. Ord. 872,000 8,375,446
Okuma Corp. (a) 304,000 3,324,616
Shintokogio Ltd. 149,000 1,346,108
Tsudakoma Corp. 178,000 1,388,046
Zuiko Corp. 46,000 1,063,002
20,032,523
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 39,837,706
MEDIA & LEISURE - 2.1%
LEISURE DURABLES & TOYS - 0.7%
Shimano Inc. 157,000 3,180,163
RESTAURANTS - 1.4%
Joyfull Co. Ltd. 31,000 683,943
Ohsho Food Service Corp. 78,000 1,409,348
Skylark Co. Ltd. 93,000 2,025,296
Yoshinoya D&C Co. Ltd. Ord. 126 1,785,364
5,903,951
TOTAL MEDIA & LEISURE 9,084,114
NONDURABLES - 2.7%
BEVERAGES - 1.0%
Asahi Breweries Ltd. 350,000 4,227,093
FOODS - 1.2%
Chubu Suisan Co. Ltd. 100,000 589,606
Nippon Suisan Kaisha Ltd. (a) 150,000 666,159
Nippon Meat Packers Inc. 170,000 2,683,657
Sonton Food Industry Co. Ltd. 80,000 1,103,133
5,042,555
HOUSEHOLD PRODUCTS - 0.5%
Uni Charm Corp. Ord. 85,000 2,392,658
TOTAL NONDURABLES 11,662,306
RETAIL & WHOLESALE - 6.1%
APPAREL STORES - 0.4%
Charle Co. Ltd. 75,000 1,105,511
Esprit Asia Holdings Ltd. 1,436,000 552,258
1,657,769

SHARES VALUE (NOTE 1)
APPLIANCE STORES - 0.4%
Japan CBM Corp. 50,000 $ 1,569,112
GENERAL MERCHANDISE STORES - 3.1%
Aoyama Trading Co. Ord. 70,000 2,190,100
Ito-Yokado Co. Ltd. 115,000 6,747,658
Izumiya Co. Ltd. 230,000 4,374,495
13,312,253
RETAIL & WHOLESALE, MISCELLANEOUS - 1.5%
Amway Japan Ltd. 63,000 3,229,233
Kahma Co., Ltd. 14,800 267,415
Uny Co. Ltd. 156,000 3,011,554
6,508,202
TRADING COMPANIES - 0.7%
Sumitomo Corp. 270,000 3,209,548
TOTAL RETAIL & WHOLESALE 26,256,884
SERVICES - 1.6%
LEASING & RENTAL - 1.2%
Orix Corp. 125,000 5,147,164
PRINTING - 0.4%
Riso Kagaku Corp. 20,000 1,688,935
TOTAL SERVICES 6,836,099
TECHNOLOGY - 11.7%
COMMUNICATIONS EQUIPMENT - 0.9%
Aiphone Co. Ltd. 41,000 885,074
Japan Radio Co. Ltd. 180,000 2,773,049
3,658,123
COMPUTER SERVICES & SOFTWARE - 0.5%
Hitachi Information Systems Co. Ltd. 83,000 1,223,432
ISR Group Ltd. (a) 70,000 48,495
Multipolar PT (For. Reg.) 690,000 918,617
2,190,544
COMPUTERS & OFFICE EQUIPMENT - 1.4%
Canon, Inc. 300,000 5,934,097
ELECTRONICS - 5.1%
Hirose Electric Co. Ltd. 30,000 1,842,994
Hitachi Ltd. 805,000 8,650,563
Hitachi Maxell Ltd. 238,000 5,115,116
Nichicon Corp. 160,000 2,647,520
Rohm Co. Ltd. 40,000 2,533,403
Wako Electric Co. Ltd. 51,000 994,247
21,783,843
PHOTOGRAPHIC EQUIPMENT - 3.8%
Fuji Photo Film Co. Ltd. 382,000 11,842,708
Konica Corp. 350,000 2,729,304
Minolta Camera Co. Ltd. 300,000 1,825,876
16,397,888
TOTAL TECHNOLOGY 49,964,495
TRANSPORTATION - 0.4%
SHIPPING - 0.4%
Kawasaki Kisen Kaisha Ltd. (a) 450,000 1,651,847
UTILITIES - 1.5%
TELEPHONE SERVICES - 1.5%
DDI Corp. Ord. 728 6,223,879
TOTAL COMMON STOCKS
(Cost $361,142,899) 392,798,355
CLOSED-END INVESTMENT COMPANIES - 1.2%
SHARES VALUE (NOTE 1)
Morgan Stanley Asia-Pacific Fund, Inc. 428,500 $ 5,142,000
Morgan Stanley Asia-Pacific Fund, Inc.
(rights) (a) 232,002 159,501
TOTAL CLOSED-END INVESTMENT COMPANIES
(Cost $4,470,596) 5,301,501
CONVERTIBLE BONDS - 1.3%
MOODY'S PRINCIPAL VALUE
RATINGS AMOUNT (C) (NOTE 1)
DURABLES - 0.2%
AUTOS, TIRES, & ACCESSORIES - 0.2%
Kiriu Machine Manufacturing
Co. Ltd. 5.20%, 9/30/98 - JPY 69,000,000 911,427
FINANCE - 1.1%
CREDIT & OTHER FINANCE - 1.1%
MBL International Finance
Bermuda 3%, 11/30/02 Aa3 4,050,000 4,677,750
TOTAL CONVERTIBLE BONDS
(Cost $5,269,587) 5,589,177
U.S. TREASURY OBLIGATIONS - 0.3%
U.S. Treasury Bills, yields at date
of purchase 4.9972% to
5.3874%, 7/18/96 (c)
(Cost $1,286,452) Aaa 1,300,000 1,286,428
REPURCHASE AGREEMENTS - 5.4%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.33%, dated
4/30/96 due 5/1/96 $ 22,965,400 22,962,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $395,131,534) $ 427,937,461
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
PURCHASED
102 Nikkei 225 Stock Index
Contracts June 1996 $ 11,293,950 $ 964,589
THE FACE VALUE OF FUTURES PURCHASED AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 2.6%
CURRENCY ABBREVIATIONS
JPY - Japanese yen
LEGEND
(a) Non-income producing
(b) Principal amount is stated in United States dollars unless otherwise
noted.
(c) Security pledged to cover margin requirements for futures contracts. At
the period end, the value of securities pledged amounted to $544,258.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $222,519,693 and $179,773,468, respectively.
The market value of futures contracts opened and closed amounted to
$47,202,210 and $53,451,637, respectively.
INCOME TAX INFORMATION
At April 30, 1996, the aggregate cost of investment securities for income
tax purposes was $395,338,252. Net unrealized appreciation aggregated
$32,599,209, of which $38,899,440 related to appreciated investment
securities and $6,300,231 related to depreciated investment securities.
At October 31, 1995, the fund had a capital loss carryforward of
approximately $34,385,000 all of which will expire on October 31, 2003.
JAPAN
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
APRIL 30, 1996 (UNAUDITED)

ASSETS

Investment in securities, at value (including repurchase agreements of $22,962,000) (cost $395,131,534) - $ 427,937,461
See accompanying schedule

Cash 305

Receivable for investments sold 4,387,335

Receivable for fund shares sold 2,369,819

Dividends receivable 1,228,759

Interest receivable 53,523

Redemption fees receivable 395

Receivable for daily variation 71,400
on futures contracts

TOTAL ASSETS 436,048,997

LIABILITIES

Payable for investments purchased $ 5,331,632

Payable for fund shares redeemed 1,536,444

Accrued management fee 220,178

Other payables and 189,662
accrued expenses

TOTAL LIABILITIES 7,277,916

NET ASSETS $ 428,771,081

Net Assets consist of:

Paid in capital $ 428,403,890

Accumulated net investment (loss) (40,888
)

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions (33,371,948
)

Net unrealized appreciation (depreciation) on investments 33,780,027
and assets and liabilities in
foreign currencies

NET ASSETS, for 31,518,649 $ 428,771,081
shares outstanding

NET ASSET VALUE and redemption price per share ($428,771,081 (divided by) 31,518,649 shares) $13.60

Maximum offering price per share (100/97.00 of $13.60) $14.02

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)

INVESTMENT INCOME $ 1,578,304
Dividends

Interest 1,094,976

2,673,280

Less foreign taxes withheld (234,718
)

TOTAL INCOME 2,438,562

EXPENSES

Management fee $ 1,441,827
Basic fee

Performance adjustment (263,935
)

Transfer agent fees 578,224

Accounting fees and expenses 136,567

Non-interested trustees' compensation 731

Custodian fees and expenses 126,175

Registration fees 32,628

Audit 18,425

Legal 1,415

Miscellaneous 2,978

Total expenses before reductions 2,075,035

Expense reductions (14,836 2,060,199
)

NET INVESTMENT INCOME 378,363

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

Investment securities (379,032
)

Foreign currency transactions (25,660
)

Futures contracts 1,810,034 1,405,342

Change in net unrealized appreciation (depreciation) on:

Investment securities 40,298,374

Assets and liabilities in 30,700
foreign currencies

Futures contracts 1,071,393 41,400,467

NET GAIN (LOSS) 42,805,809

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 43,184,172

OTHER INFORMATION $ 657,627
Sales charges paid to FDC

Expense reductions $ 8,706
Directed brokerage arrangements

Transfer agent interest credits 6,130

$ 14,836

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS SIX MONTHS YEAR ENDED
ENDED OCTOBER 31,
APRIL 30, 1996 1995
(UNAUDITED)

Operations $ 378,363 $ (219,808)

Net investment income (loss)

Net realized gain (loss) 1,405,342 (38,392,615)

Change in net unrealized appreciation (depreciation) 41,400,467 (19,488,375)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 43,184,172 (58,100,798)

Distributions to shareholders from net realized gains - (10,783,293)

Share transactions 171,054,593 328,361,252

Net proceeds from sales of shares

Reinvestment of distributions - 10,600,847

Cost of shares redeemed (129,815,721) (396,639,291)

Redemption fees 366,923 903,307

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS 41,605,795 (56,773,885)

TOTAL INCREASE (DECREASE) IN NET ASSETS 84,789,967 (125,657,976)

NET ASSETS

Beginning of period 343,981,114 469,639,090

End of period (including accumulated net investment loss of $40,888 and $419,251, respectively) $ 428,771,081 $ 343,981,114

OTHER INFORMATION

Sold 13,336,980 26,845,585

Issued in reinvestment of distributions - 830,825

Redeemed (10,285,027) (32,128,159)

Net increase (decrease) 3,051,953 (4,451,749)

</TABLE>

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

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED OCTOBER 31, SEPTEMBER 15, 1992
ENDED (COMMENCEMENT OF
APRIL 30, 1996 OPERATIONS) TO
OCTOBER 31,

</TABLE>

SELECTED PER-SHARE DATA (UNAUDITED) 1995 1994 E 1993 1992

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 12.08 $ 14.27 $ 13.35 $ 9.84 $ 10.00

Income from Investment Operations

Net investment income (loss) .01 (.02) (.04) D (.09) -

Net realized and unrealized gain (loss) 1.50 (1.89) 1.31 3.60 (.16)

Total from investment operations 1.51 (1.91) 1.27 3.51 (.16)

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

Redemption fees added to paid in capital .01 .08 .04 - -

Net asset value, end of period $ 13.60 $ 12.08 $ 14.27 $ 13.35 $ 9.84

TOTAL RETURN B, C 12.58% (12.96)% 10.45% 35.67% (1.60)%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 428,771 $ 343,981 $ 469,639 $ 118,195 $ 2,953

Ratio of expenses to average net assets 1.09% A 1.15% 1.42% 1.71% 2.00% A, F

Ratio of expenses to average net assets after expense reductions 1.08% A, 1.15% 1.42% 1.71% 2.00% A
G

Ratio of net investment income (loss) to average net assets .20% A (.06)% (.32)% (.77)% .03% A

Portfolio turnover rate 104% A 86% 153% 257% -

Average commission rate H $ .0359

ANNUALIZED
THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 7 OF NOTES TO FINANCIAL
STATEMENTS).
TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS
OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
EFFECTIVE NOVEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION
93-2, "DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION
OF INCOME, CAPITAL
GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES."
AS A RESULT, NET INVESTMENT INCOME PER SHARE MAY REFLECT CERTAIN
RECLASSIFICATIONS RELATED
TO BOOK TO TAX DIFFERENCES.
FMR 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.
FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES
(SEE NOTE 7 OF NOTES TO
FINANCIAL STATEMENTS).
FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS
REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR
SECURITY TRADES ON
WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO
PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN
VARIOUS MARKETS
WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER.

</TABLE>

JAPAN SMALL COMPANIES
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (income) and capital gains (the profits the
fund earns when it sells securities that have grown in value). The fund has
a 3% sales charge.
CUMULATIVE TOTAL RETURNS
PERIOD ENDED PAST 6
APRIL 30, 1996 MONTHS
*

JAPAN SMALL COMPANIES 13.70%

JAPAN SMALL COMPANIES (INCL. 3% SALES CHARGE) 10.29%

Tokyo Stock Price Index 18.87%

Japanese Funds Average 14.97%

LIFE OF FUND.
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months (since the fund started on
November 1, 1995). For example, if you invested $1,000 in a fund that had a
5% return over the past year, the value of your investment would be $1,050.
You can compare the fund's returns to the performance of the Tokyo Stock
Price Index - a broad measure of the Japanese stock market's performance,
similar to the Standard & Poor's 500 Index in the U.S. To measure how the
fund's performance stacked up against its peers, you can compare the fund's
performance to the Japanese funds average, which reflects the performance
of 14 funds with similar objectives - in this case, a very small peer group
- - tracked by Lipper Analytical Services over the past six months. These
benchmarks include reinvested dividends and capital gains, if any, and
exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year. In the fund's next report we'll report these
numbers for the fund and the benchmarks.
$10,000 OVER LIFE OF FUND

The growth of a hypothetical $10,000 INVESTMENT in the fund will appear in
the fund's next report.

An interview with Simon Fraser, Portfolio Manager of Japan Small Companies
Fund
Q. JAPAN SMALL COMPANIES FUND STARTED ON NOVEMBER 1, 1995. WHY WAS IT
CREATED?
A. This fund was created for investors who want exposure to developing
companies that are listed on the JASDAQ - the Japanese version of NASDAQ -
and smaller companies that trade on the Tokyo Stock Exchange. Usually, when
we think of investing in Japan, we think of enormous industrial companies,
especially the well-known international companies that experienced
phenomenal growth in the post-World War II era. While international trade
flourished, the domestic economy remained remarkably underdeveloped. A
highly regulated environment which encouraged saving and discouraged
consumption led to unfulfilled consumer demand. That has begun to change. I
believe that the opportunity for growth and investment in Japan is in the
domestic economy and the small-to medium-size companies that serve it. More
western goods are becoming available in Japan, and the old system of
distribution and retailing has begun to change for the better. Due to price
regulations in the past, the Japanese were forced to overpay for
necessities. With deregulation, their money will be used differently,
creating a new opportunity for entrepreneurs and investors.
Q. HOW DID THE FUND PERFORM?
A. Since its inception on November 1, 1995 until the end of the period on
April 30, 1996, the fund returned 13.70%. During the same period, the
Japanese funds average returned 14.97%, according to Lipper Analytical
Services. The Tokyo Stock Price Index - a measure of the overall
performance of the Japanese stock market - returned 18.87% during the same
period. While they are the best available to us, neither of these
comparisons are particularly accurate, since no existing index accurately
measures performance of the kinds of stocks this fund owns.
Q. WHAT DO YOU FIND ATTRACTIVE ABOUT SMALL COMPANIES IN JAPAN?
A. Small companies in Japan that we are focusing on differ from larger
industrials in several ways: they usually import rather than export,
provide service rather than manufacture and are aimed at consumption rather
than investment. Interestingly, the new breed of smaller Japanese stocks
are not like the high-tech issues that dominate the over-the-counter market
in the U.S. These stocks tend to be retailers, service-sector companies in
areas such as retailing, financial services, software, and entertainment.
Though small Japanese companies aren't heavily weighted toward technology,
the fund does have exposure to technology stocks.
Q. WHAT WAS THE INVESTING ENVIRONMENT LIKE FOR SMALL STOCKS DURING THE
PERIOD?
A. During the past month or two, the valuations of the small stocks were
very attractive because they have underperformed for the past four years.
Valuation - such as price-to-earnings and price-to-book ratios - of the
small company stocks were still attractive at the end of the period.
Q. CAN THESE COMPANIES MAINTAIN THEIR CURRENT GROWTH RATES?
A. In addition to growing faster than the large companies, the small
companies' growth is probably more sustainable. Much of the earnings growth
in the large companies is a result of restructuring and cost-cutting that
can't continue indefinitely. As deregulation continues, a climate of
sustained growth is created as the production inefficiencies that were
built into the system are corrected. The future of domestic growth seems
bright, since Japan is still relatively underdeveloped in the use of
personal computers, software, networks and cellular telephones, among other
things.
Q. WHAT KIND OF STOCKS DID YOU LOOK FOR DURING THE PERIOD?
A. A key to the fund's success is the level of commitment Fidelity has made
in terms of its resources. We are looking for undiscovered growth companies
with attractive valuations. The maturing of the domestic economy of Japan
has been accelerated by the difficult economy of the past five years. As
consumers suffered through the recession, they learned to shop for quality
at a better price. With a weak stock market, only the best companies were
financed, and all companies have been forced to sharpen their managerial
skills. Different sectors are maturing at different speeds. Retail chains
are taking market share from the general department store and small corner
stores. Royal Ltd. is an auto parts retailer that has been expanding
rapidly. One of only two listed auto supply retailers in Japan, it provides
services of all types to the car owner - from new tires, to exhaust systems
and stereos.
Q. CONSTRUCTION AND REAL ESTATE IS CURRENTLY THE FUND'S LARGEST SECTOR
WEIGHTING. WHAT'S YOUR STRATEGY?
A. With vacancy rates down, the real estate markets have stabilized in most
of the major cities. Cesar Co. and Kansai Sekiwa Real Estate are stocks
whose valuations appeared quite attractive as business prospects improved
and prices finally began to increase after the past five years.
Q. WHERE ELSE DID YOU FIND OPPORTUNITIES?
A. Acom Co. Ltd. is a consumer financial services company. Banks in Japan
don't offer overdraft protection or short-term consumer credit, but this
innovative company provides financing that is similar to credit card
financing in the U.S. Though the interest rates they charge consumers are
extraordinarily high, there is a strong demand for such a service. Amway
Japan Ltd. is an example of a company taking advantage of the changing
distribution channels in Japan. With market liberalization of prices for
consumer goods, this company has been innovative in responding to the need
of Japanese consumers who are looking for value.
Q. HOW RISKY IS IT TO INVEST IN JAPAN SMALL COMPANIES FUND?
A. There's always risk involved in investing, especially in stocks of a
foreign country in which currency exposure is always a concern. This fund
primarily invests in smaller companies that tend to be more volatile than
larger ones. However, bankruptcy risk is low because regulations to get
listed on the exchanges are very stringent. Unlike companies in the U.S.
that can trade over-the-counter with no sales or earnings, Japanese OTC
stocks must be earning money and have a five-year track record of
operation.
Q. WHAT'S YOUR OUTLOOK FOR THE FUND, SIMON?
A. I think the outlook is positive for several reasons. The Japanese
economy, in general, is showing signs of recovery, yet because it is early,
there is no concern about inflation just yet. I also believe that interest
rates can stay fairly low, even with this level of economic growth, and
corporate earnings should continue to improve. I think earnings will
continue to grow faster for smaller companies, and that rapid growth is
more sustainable than it is for the larger companies in the economy. The
relative valuations of small companies versus larger companies are also
attractive.

FUND FACTS
GOAL: long-term growth of capital by investing
mainly in equity securities of Japanese issuers
with small market capitalizations
START DATE: November 1, 1995
TRADING SYMBOL: FJSCX
SIZE: as of April 30, 1996, more than
$149 million
MANAGER: Simon Fraser, since November
1995; manager, Fidelity Pacific Basin Fund,
1993-May, 1996; also manages various funds
for non-U.S. investors; joined Fidelity in 1981
(checkmark)
SIMON FRASER ON GROWTH OPPORTUNITIES IN THE DOMESTIC
ECONOMY OF JAPAN:
"There are two compelling reasons for investing in the
domestic economy of Japan. One reason I'll call the
cyclical, or short term argument; the other I'll call the
secular or longer-term argument. First the cyclical
argument.
"Japan is recovering from a five-year recession. There
has been tremendous appreciation in the stock
market since the lows of the summer of 1995.
Large companies rebounded first, and small
companies have rebounded in absolute terms but
have not yet significantly outperformed. The small
companies, especially, had attractive valuations
since they'd underperformed for so long. Sectors
such as real estate and construction are classic
examples of cyclicals. They lose value during difficult
economic times, and their valuations become very
attractive when the economy picks up again. Same
for retailers. They are badly hurt by a recession, but
their margins begin to improve as the economy
swings upward again.
"The secular argument is even more compelling.
The fact is that the economic, political and social
forces of the country focused solely on export
industries for the past 30-40 years, while the others
were underdeveloped. My belief is that the
liberalization of market forces in Japan's service
sectors offer the most exciting opportunities for growth
in that country today."
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
JAPAN SMALL COMPANIES
INVESTMENT SUMMARY

GEOGRAPHIC DIVERSIFICATION
AS OF APRIL 30, 1996
United
States 16.6%
Row: 1, Col: 1, Value: 16.6
Row: 1, Col: 2, Value: 83.40000000000001
Japan 83.4%
ASSET ALLOCATION
% OF FUND'S
INVESTMENTS

Stocks 82.5

Bonds 0.9

Short-term investments 16.6

TOP TEN STOCKS
% OF FUND'S
INVESTMENTS

Sony Music Entertainment Japan, Inc. 4.4
(Entertainment)

NTT Data Communications System 4.4
(Computer Services & Software)

Acom Co. Ltd. 3.0
(Credit & Other Finance)

Japan Telecom Co. Ltd. 2.4
(Telephone Services)

Amway Japan Ltd. 2.1
(Retail & Wholesale, Miscellaneous)

Cesar Co. 1.9
(Real Estate)

Katokichi Co. Ltd. 1.7
(Foods)

Japan Associated Finance Co. 1.7
(Credit & Other Finance)

New Japan Securities 1.6
(Securities Industry)

Royal Ltd. 1.4
(Autos, Tires, & Accessories)

TOP TEN MARKET SECTORS
% OF FUND'S
INVESTMENTS

Construction & Real Estate 13.7

Technology 11.1

Durables 10.5

Finance 9.3

Retail & Wholesale 9.1

Media & Leisure 7.0

Industrial Machinery & Equipment 5.1

Basic Industries 4.6

Utilities 3.6

Transportation 2.6

JAPAN SMALL COMPANIES
INVESTMENTS APRIL 30, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 82.5%
SHARES VALUE (NOTE 1)
AEROSPACE & DEFENSE - 2.2%
AEROSPACE & DEFENSE - 0.7%
Jamco Corp. 65,000 $ 1,050,830
SHIP BUILDING & REPAIR - 1.5%
Namura Shipbuilding Co. Ltd. 166,000 1,002,425
Sasebo Heavy Industries Co. Ltd. 350,000 1,218,202
2,220,627
TOTAL AEROSPACE & DEFENSE 3,271,457
BASIC INDUSTRIES - 4.6%
CHEMICALS & PLASTICS - 1.5%
Nippon Zeon Co. Ltd. 133,000 844,886
Sakai Chemical Industry Co. Ltd. 105,000 768,865
Tenma Corp. 25,000 613,380
2,227,131
IRON & STEEL - 1.8%
Bunka Shutter Co. Ltd. 153,000 1,163,996
Bunka Shutter Co. Ltd. (warrants) (a) 300 161,250
Chubu Steel Plate Co. Ltd. 63,000 427,769
NKK Corp. (a) 150,000 467,881
Toa Steel 77,000 443,745
2,664,641
METALS & MINING - 0.1%
Kanamoto Co. Ltd. 10,000 153,107
PACKAGING & CONTAINERS - 0.4%
Tomoku Co. Ltd. 80,000 523,418
PAPER & FOREST PRODUCTS - 0.8%
Daishowa Paper Manufacturing
Co. Ltd. (a) 25,000 230,612
Seven Industry Co. Ltd. 30,000 218,249
Tokushu Paper Manufacturing Co. Ltd. 47,000 554,229
Ube-Nitto Kasei Co. Ltd. 16,000 164,329
1,167,419
TOTAL BASIC INDUSTRIES 6,735,716
CONSTRUCTION & REAL ESTATE - 13.7%
BUILDING MATERIALS - 3.5%
Almetax Manufacturing Co. Ltd. 88,580 1,086,664
Almetax Manufacturing Co. Ltd.
(warrants) (a) 1,500 373,644
Chofu Seisaku Co. Ltd. 71,000 1,843,279
Fujisash Co. Ltd. 16,300 192,211
Hibiya Engineering Ltd. (warrants) (a) 1,300 215,187
Kikusui Chemical Industries Co. Ltd. 28,000 335,505
Kondotec, Inc. 15,000 169,749
Oriental Construction Co. Ltd. 51,000 872,997
Shinko Kogyo Co. Ltd. 8,000 52,874
5,142,110
CONSTRUCTION - 2.6%
Kitano Construction Corp. 13,000 98,283
Mitsui Home Co. Ltd. 37,000 615,758
Mitsui Wood Systems, Inc. 73,000 812,230
Nichiei Construction Co. Ltd. 30,000 379,440
Nissei Build Kogyo Co. Ltd. 67,000 841,044
Ohmoto Gumi Co. Ltd. 17,600 396,672
Tokyo Tatemono Co. Ltd. (a) 110,000 683,087
3,826,514
ENGINEERING - 1.1%
Ataka Construction & Engineering Co. Ltd. 51,000 533,498
Kawasaki Setsubi Kogyo Co. Ltd. (a) 19,000 229,471

SHARES VALUE (NOTE 1)
Japan Industrial Land Development Co. Ltd. 24,200 $ 853,806
Nippon Engineering Consultants Co. Ltd. 1,200 28,301
1,645,076
REAL ESTATE - 6.5%
Cesar Co. 275,000 2,719,794
Chubu Sekiwa Real Estate Ltd. 22,000 364,034
Chubu Sekiwa Real Estate Ltd.
(warrants) (a) 500 60,265
Heiwa Real Estate Co. Ltd. 230,000 1,935,714
Inui Tatemono Co. Ltd. 11,000 129,713
Kansai Sekiwa Real Estate Ltd. 94,400 1,651,809
Recruit Cosmos Co. Ltd. 118,000 1,122,153
Sekiwa Real Estate Ltd. 37,000 422,234
Toc Company Ltd. 38,000 437,259
Tohoku Misawa Homes Co. Ltd. 58,000 722,552
9,565,527
TOTAL CONSTRUCTION & REAL ESTATE 20,179,227
DURABLES - 10.5%
AUTOS, TIRES, & ACCESSORIES - 3.9%
FCC Co. Ltd. 39,600 1,468,689
Hirata Technical Co. Ltd. 24,000 417,669
Mitsuba Electric Manufacturing Co. Ltd.
(warrants) (a) 700 258,738
NGK Spark Plug Co. Ltd. (warrants) (a) 500 428,125
Royal Ltd. 58,300 1,984,822
Toyoda Gosei Co. 75,000 634,777
Yorozu Corp. 24,500 468,309
5,661,129
CONSUMER DURABLES - 2.8%
Aderans Co. Ltd. 75,000 1,783,082
Kuramoto Seisakusho Co. Ltd. 27,000 821,644
Maruwa Ceramic Co. Ltd. 21,700 1,434,216
4,038,942
CONSUMER ELECTRONICS - 0.7%
Daiichi Corp. Ord. 40,000 1,008,036
TEXTILES & APPAREL - 3.1%
Aoki International Co. Ltd. 29,000 703,248
Chiyoda Corp. 20,000 464,077
Descente Ltd. 123,000 897,161
Impact 21 Co. Ltd. 14,000 291,570
Jeans Mate Corp. 6,600 244,782
Maruko Co. Ltd. 9,000 801,103
Sotoh Co. Ltd. 10,000 139,794
Tokai Senko Kk (a) 129,000 1,069,735
4,611,470
TOTAL DURABLES 15,319,577
ENERGY - 0.5%
OIL & GAS - 0.5%
Daikyo, Inc. 101,000 753,022
FINANCE - 9.3%
CREDIT & OTHER FINANCE - 4.8%
Acom Co. Ltd. 117,000 4,394,941
Japan Associated Finance Co. 20,000 2,472,540
Kawasho Lease System Corp. 13,000 160,715
7,028,196
SECURITIES INDUSTRY - 4.5%
Ace Koeki Co. Ltd. 36,000 701,821
Ichiyoshi Securities 69,000 505,254
Kankaku Securities (a) 225,000 1,084,827
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
FINANCE - CONTINUED
SECURITIES INDUSTRY - CONTINUED
Kokusai Securities Co. Ltd. 80,000 $ 1,293,329
New Japan Securities (a) 350,000 2,413,104
Wako Securities 58,000 533,917
6,532,252
TOTAL FINANCE 13,560,448
HEALTH - 0.9%
DRUGS & PHARMACEUTICALS - 0.5%
JCR Pharmaceuticals Co. Ltd. 24,000 616,233
Sanseido Co. Ltd. 11,000 138,082
754,315
MEDICAL EQUIPMENT & SUPPLIES - 0.4%
Fukuda Denshi Co. Ltd. 12,000 342,352
Hogy Medical Co. 3,500 179,735
522,087
TOTAL HEALTH 1,276,402
INDUSTRIAL MACHINERY & EQUIPMENT - 5.1%
ELECTRICAL EQUIPMENT - 0.5%
Icom, Inc. 10,000 108,411
Shinko Electric Industries Co. Ltd. 18,000 633,351
741,762
INDUSTRIAL MACHINERY & EQUIPMENT - 4.6%
Asahi Diamond Industrial Co. Ltd. 20,600 280,139
Fuji Oozx, Inc. 7,000 53,920
Kuroda Precision Industries Ltd. (a) 21,000 179,735
Kyoritsu Air Technology, Inc. 12,000 155,199
Nippon Thompson Co. Ltd. 30,000 296,705
Nitto Kohki Co. Ltd. 42,900 1,733,869
Shinko Pantec Co. Ltd. 30,000 278,161
Takuma Co. Ltd. 92,000 1,408,587
Tsubaki Nakashima Co. Ltd. 40,000 532,547
Tsubakimoto Chain Co. 60,000 421,663
Tokai Carbon Co. Ltd. 155,000 921,259
Union Tool Co. 19,000 480,624
6,742,408
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 7,484,170
MEDIA & LEISURE - 7.0%
ENTERTAINMENT - 4.4%
Sony Music Entertainment Japan, Inc. 119,700 6,454,272
LEISURE DURABLES & TOYS - 0.3%
Roland Corp. 20,000 361,371
PUBLISHING - 0.2%
Takara Printing Co. Ltd. 24,000 342,352
RESTAURANTS - 2.1%
Kentucky Fried Chicken Japan 46,000 962,389
Saint Marc Co. Ltd. 22,800 1,303,105
Yoshinoya D&C Co. Ltd. Ord. 54 765,156
3,030,650
TOTAL MEDIA & LEISURE 10,188,645
NONDURABLES - 2.0%
FOODS - 2.0%
Katokichi Co. Ltd. 100,000 2,482,050
Yonekyu Corp. 26,000 375,826
2,857,876

SHARES VALUE (NOTE 1)
RETAIL & WHOLESALE - 9.1%
APPAREL STORES - 0.2%
Marutomi Group Co. Ltd. 14,000 $ 157,101
Marutomi Group Co. Ltd. (warrants) (a) 700 113,620
270,721
GENERAL MERCHANDISE STORES - 2.3%
Hankyu Department Stores, Inc. 100,000 1,454,995
Hanshin Department Store Ltd. 61,000 504,684
Matsumotokiyoshi Co. Ltd. 43,800 1,395,369
3,355,048
GROCERY STORES - 1.1%
U Store Co. Ltd. 5,000 66,568
York Benimaru Co. 40,400 1,613,618
1,680,186
RETAIL & WHOLESALE, MISCELLANEOUS - 5.5%
Amway Japan Ltd. 60,000 3,075,460
Kahma Co. Ltd. 30,200 545,671
Juel Verite Ohkubo Co. Ltd. 34,000 319,452
Maruzen Co. Ltd. 83,000 1,491,798
Paris Miki, Inc. 17,600 741,458
Salomon & Taylor Made Co. Ltd. 69,000 1,017,070
Tachibana Shokai Ltd. (warrants) (a) 1,350 200,683
Tsutsumi Jewelry Co. Ltd. 13,300 662,755
8,054,347
TOTAL RETAIL & WHOLESALE 13,360,302
SERVICES - 1.2%
Cats, Inc. 93,000 1,538,870
Ishikawajima Hanyoki Service Co. Ltd. 10,000 190,195
1,729,065
TECHNOLOGY - 10.2%
COMMUNICATIONS EQUIPMENT - 1.9%
Fujitsu Denso 30,000 878,703
Oi Electric Co. Ltd. 80,000 1,955,209
2,833,912
COMPUTER SERVICES & SOFTWARE - 4.4%
NTT Data Communications System 185 6,439,066
COMPUTERS & OFFICE EQUIPMENT - 1.1%
Kanematsu Electronics Ltd. 73,000 819,172
Nissho Electronics Corp. 40,000 844,468
1,663,640
ELECTRONIC INSTRUMENTS - 0.1%
Shibaura Electronics Co. 5,500 135,990
ELECTRONICS - 2.3%
Apic Yamada Corp. 15,000 465,028
Doshisha Co. Ltd. 9,000 272,170
Fujitsu Kiden Ltd. 41,000 584,851
Meiden Engineering Co. Ltd. 10,000 161,666
Mimasu Semiconductor Industries Co. Ltd. 60,000 1,483,524
Nichicon Corp. 20,000 330,940
3,298,179
PHOTOGRAPHIC EQUIPMENT - 0.4%
Minolta Camera Co. Ltd. 95,000 578,194
TOTAL TECHNOLOGY 14,948,981
TRANSPORTATION - 2.6%
RAILROADS - 0.4%
Hankyu Corp. (warrants) (a) 450 244,688
Tobu Railway Co. Ltd. (warrants) (a) 900 410,625
655,313
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
TRANSPORTATION - CONTINUED
SHIPPING - 2.2%
Kawasaki Kisen Kaisha Ltd. (a) 500,000 $ 1,835,386
Navix Line Ltd. (a) 425,000 1,382,245
3,217,631
TOTAL TRANSPORTATION 3,872,944
UTILITIES - 3.6%
ELECTRIC UTILITY - 1.2%
Chubu Electric Power 70,000 1,764,063
TELEPHONE SERVICES - 2.4%
Japan Telecom Co. Ltd. 169 3,535,733
TOTAL UTILITIES 5,299,796
TOTAL COMMON STOCKS
(Cost $110,711,784) 120,837,628
CONVERTIBLE BONDS - 0.9%
MOODY'S PRINCIPAL VALUE
RATINGS AMOUNT (C) (NOTE 1)
TECHNOLOGY - 0.9%
COMPUTERS & OFFICE EQUIPMENT - 0.9%
Softbank Corp. 0.5%, 3/29/02
(Cost $945,180) - JPY 100,000,000 1,302,839
REPURCHASE AGREEMENTS - 16.6%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.33%, dated
4/30/96 due 5/1/96 $ 24,275,594 24,272,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $135,928,964) $ 146,412,467
CURRENCY ABBREVIATIONS
JPY - Japanese yen
LEGEND
(a) Non-income producing
(b) Principal amount is stated in United States dollars unless otherwise
noted.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $127,625,485 and $16,370,911, respectively.
INCOME TAX INFORMATION
At April 30, 1996, the aggregate cost of investment securities for income
tax purposes was $135,928,964. Net unrealized appreciation aggregated
$10,483,503, of which $11,863,217 related to appreciated investment
securities and $1,379,714 related to depreciated investment securities.
JAPAN SMALL COMPANIES
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996 (UNAUDITED)

ASSETS

Investment in $ 146,412,467
securities, at
value
(including
repurchase
agreements
of
$24,272,000)
(cost
$135,928,964
) - See
accompanyin
g schedule

Cash 151

Receivable for 1,193,390
investments
sold

Receivable for 6,278,559
fund shares
sold

Dividends 240,379
receivable

Interest 391
receivable

Prepaid 14,089
expenses

TOTAL ASSETS 154,139,426

LIABILITIES

Payable for $ 4,880,201
investments
purchased

Payable for 80,968
fund shares
redeemed

Accrued 74,518
management
fee

Other payables 53,114
and
accrued
expenses

TOTAL 5,088,801
LIABILITIES

NET ASSETS $ 149,050,625

Net Assets
consist of:

Paid in capital $ 138,124,069

Undistributed 39,292
net
investment
income

Accumulated 402,073
undistributed
net realized
gain (loss) on
investments
and foreign
currency
transactions

Net unrealized 10,485,191
appreciation
(depreciation
) on
investments
and assets
and liabilities
in
foreign
currencies

NET ASSETS, for $ 149,050,625
13,103,490
shares
outstanding

NET ASSET $11.37
VALUE and
redemption
price per
share
($149,050,62
5 (divided by)
13,103,490
shares)

Maximum $11.72
offering price
per share
(100/97.00 of
$11.37)

STATEMENT OF OPERATIONS
NOVEMBER 1, 1995 (COMMENCEMENT OF
OPERATIONS) TO
APRIL 30, 1996 (UNAUDITED)

INVESTMENT $ 304,568
INCOME
Dividends

Interest 288,718

593,286

Less foreign (45,685
taxes )
withheld

TOTAL 547,601
INCOME

EXPENSES

Management $ 282,205
fee

Transfer agent 108,101
fees

Accounting 31,500
fees and
expenses

Non-interested 81
trustees'
compensatio
n

Custodian fees 36,020
and
expenses

Registration 35,889
fees

Audit 14,576

Total 508,372
expenses
before
reductions

Expense (63 508,309
reductions )

NET 39,292
INVESTMENT
INCOME

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

Investment 402,390
securities

Foreign (317 402,073
currency )
transactions

Change in net
unrealized
appreciation
(depreciation
) on:

Investment 10,483,503
securities

Assets and 1,688 10,485,191
liabilities in
foreign
currencies

NET GAIN (LOSS) 10,887,264

NET INCREASE $ 10,926,556
(DECREASE)
IN NET ASSETS
RESULTING
FROM
OPERATIONS

OTHER $ 505,853
INFORMATION
Sales
charges paid
to FDC

Expense $ 63
reductions
Custodian
interest
credits

$ 63

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS NOVEMBER 1, 1995
(COMMENCEMENT
OF
OPERATIONS) TO
APRIL 30, 1996
(UNAUDITED)

Operations $ 39,292
Net
investment
income

Net realized 402,073
gain (loss)

Change in 10,485,191
net
unrealized
appreciation
(depreciation
)

NET INCREASE 10,926,556
(DECREASE)
IN NET
ASSETS
RESULTING
FROM
OPERATIONS

Share 158,978,256
transactions
Net proceeds
from sales of
shares

Cost of (21,002,037)
shares
redeemed

Redemption 147,850
fees

NET INCREASE 138,124,069
(DECREASE)
IN NET
ASSETS
RESULTING
FROM SHARE
TRANSACTIO
NS

TOTAL 149,050,625
INCREASE
(DECREASE)
IN NET ASSETS

NET ASSETS

Beginning of -
period

End of period $ 149,050,625
(including
undistribute
d net
investment
income of
$39,292)

OTHER
INFORMATION
Shares

Sold 15,129,915

Redeemed (2,026,425)

Net increase 13,103,490
(decrease)

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

</TABLE>

FINANCIAL HIGHLIGHTS
NOVEMBER 1, 1995
(COMMENCEMENT
OF
OPERATIONS) TO
APRIL 30, 1996
(UNAUDITED)

SELECTED PER-SHARE DATA

Net asset $ 10.00
value,
beginning of
period

Income from
Investment
Operations

Net .01 E
investment
income

Net realized 1.34
and
unrealized
gain (loss)

Total from 1.35
investment
operations

Redemption .02
fees added to
paid in
capital

Net asset $ 11.37
value, end of
period

TOTAL RETURN B, 13.70%
C

RATIOS AND
SUPPLEMENT
AL DATA

Net assets, $ 149,051
end of period
(000 omitted)

Ratio of 1.38% A
expenses to
average net
assets

Ratio of net .11% A
investment
income to
average net
assets

Portfolio 51% A
turnover rate

Average $ .0576
commission
rate D

LATIN AMERICA
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (income) and capital gains (the profits the
fund earns when it sells securities that have grown in value). The fund has
a 3% sales charge.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED PAST 6 PAST 1 LIFE OF
APRIL 30, 1996 MONTHS YEAR FUND

LATIN AMERICA 23.94% 22.68% 21.66%

LATIN AMERICA 20.22% 19.00% 18.01%
(INCL. 3% SALES CHARGE)

Morgan Stanley Capital 16.46% 15.00% 44.00%
International Latin America
Free Index

Latin America Region Funds Average 19.72% 17.90% n/a

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, or since the fund
started on April 19, 1993. For example, if you invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment would
be $1,050. You can compare the fund's returns to the performance of the
Morgan Stanley Capital International Latin America Free Index, a broad
measure of the performance of stocks in Latin American markets weighted by
each country's market capitalization (or the total value of the shares
outstanding). To measure how the fund's performance stacked up against its
peers, you can compare it to the Latin America region funds average, which
reflects the performance of 23 funds with similar objectives - in this
case, a very small peer group - tracked by Lipper Analytical Services over
the past six months. These benchmarks include reinvested dividends and
capital gains, if any, and exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED PAST 1 LIFE OF
APRIL 30, 1996 YEAR FUND

LATIN AMERICA 22.68% 6.67%

LATIN AMERICA 19.00% 5.61%
(INCL. 3% SALES CHARGE)

Morgan Stanley Capital 15.00% 12.76%
International Latin America
Free Index

Latin America Region Funds Average 17.90% n/a

Let's say you invested $10,000 in Fidelity Latin America Fund on April 19,
1993, when the fund started, and paid the 3% sales charge. By April 30,
1996, your investment would have been valued at $11,801 - an 18.01%
increase on your initial investment. That compares to $10,000 invested in
the Morgan Stanley Capital International Latin America Free Index, which
would have grown to $14,400 over the same period - a 44.00% increase.

An interview with Patti Satterthwaite, Portfolio Manager of Fidelity Latin
America Fund
Q. HOW HAS THE FUND PERFORMED, PATTI?
A. The fund performed well, beating both its competitors and its benchmark.
For the six- and 12-month periods ended April 30, 1996, the fund had total
returns of 23.94% and 22.68% respectively. Those returns beat the Latin
America region funds average returns of 19.72% and 17.90% during the same
time periods, as tracked by Lipper Analytical Services. The fund also beat
the Morgan Stanley Capital International Latin America Free Index, which
returned 16.46% and 15.00%, respectively, for the six- and 12-month periods
ended April 30, 1996.
Q. THERE WAS A DRAMATIC TURNAROUND IN LATIN AMERICAN INVESTMENTS OVER THE
PAST SIX MONTHS. WHAT TRIGGERED THAT REVERSAL?
A. Latin American markets have undergone several periods of volatility
throughout the past year. The Mexican peso devaluation in 1994 and its
lingering effects on the economies and financial condition of the region
had a significant impact. A year ago, it was not clear whether Latin
American countries, when faced with large external financing requirements
and difficult markets, would return to their prior policies of budget
deficit spending, hyperinflation and currency devaluation. By late 1995 and
early this year, however, investors increasingly became convinced that
Latin American governments would continue to stick to their policies of
maintaining a low inflation rate, while also posting budget and trade
surpluses. Argentina and Mexico, for example, have experienced profound
recessions in order to keep their policy favorable for the markets.
Consumer confidence - which is a key factor for economic growth - continued
to slowly improve across the region. Because of these positive
developments, investment interest and equity trading volumes in the region
improved. Those factors combined to trigger rising stock prices in
virtually the entire Latin America Region.
Q. WHY WAS THE FUND ABLE TO PERFORM BETTER THAN OTHER FUNDS OF ITS TYPE?
A. The fund's above-average returns can be attributed mostly to the
performance of individual stocks, rather than an overweighting or
underweighting in any specific regional market. Among the fund's top
performers was Grupo Carso, a broad-based Mexican conglomerate with
interests in auto parts manufacturing, mining, telecommunications and
construction, among other businesses. This holding consistently has been
one of the fund's largest investments over the past three years. One of the
primary factors that drove its recent performance was the devaluation of
the Mexican peso, which allowed the company to double its export business
to over 20% of its total sales for 1995. Despite the fact that during the
past year or so Mexico has experienced its worst recession in more than 40
years, Grupo Carso was able to increase its operating profits by 6% and its
sales by 2% in 1995, primarily through improvements in its export
businesses.
Q. THE FUND'S INVESTMENTS IN MEXICO INCREASED TO 23.4% AT THE END OF THE
PERIOD, UP FROM 21.1% SIX MONTHS EARLIER. WHAT OTHER INVESTMENTS IN MEXICO
WERE ATTRACTIVE?
A. Another of the fund's larger Mexican holdings was Grupo Financiero
Inbursa, a bank holding company. Despite the very difficult banking
environment in Mexico, this company was able to maintain a 50% return on
equity (ROE) and cover its non-performing loans by over 100%. High
capitalization and prudent risk management allowed it to become the third
largest bank in Mexico.
Q. HOW DID THE INVESTMENTS IN CHILE FARE?
A. They did well and helped the fund's performance, although I've kept the
fund underweighted relative to the index in Chilean stocks at 5.4% of
investments at the end of the period. I think the economic fundamentals in
Chile are quite good: the economy is growing and inflation is falling.
However, in my view Chilean stock prices as a whole already reflected that
good news and I thought they looked too expensive relative to what I
believed was their fair value. One of the best performing holdings was
Enersis, an electric utility holding company. The company invested its
excess cash flow outside of the country in Argentina, Brazil and Peru,
where growth rates are more than 15%. In financial services, Banco Osorno
has benefited from the country's economic growth and declining inflation.
Soc Quimica y Minera (SQM) produces a unique fertilizing product, the
demand for which grew at a healthy pace over the past 12 months.
Q. AT THE END OF THE PERIOD, BRAZIL WAS THE FUND'S LARGEST COUNTRY SECTOR
AT 37.4%. TELL US ABOUT YOUR HOLDINGS THERE.
A. The fund's largest Brazilian holding is Telebras, the state holding
company that controls 28 telephone operating subsidiaries and a monopoly
position in supplying local and long distance services in the country. I
also held on to investments in Panamerican Beverages, a multi-regional
Coca-Cola bottler that serves Mexico, Colombia and Panama, as well as
Brazil. Also among the fund's top Brazilian holdings was Brahma, the
country's largest beer company, with about half of Brazil's market share.
Telesp, a telecommunications company, performed well as investors
anticipated gains from rate increases and industry privatization.
Q. THE ARGENTINE MARKET POSTED THE STRONGEST PERFORMANCE AMONG THE LATIN
AMERICAN MARKETS, AND THE FUND REMAINED OVERWEIGHTED - RELATIVE TO THE
INDEX - IN THE COUNTRY OVER THE PAST SIX MONTHS. WHICH OF THE FUND'S
HOLDINGS PERFORMED WELL?
A. Perez Companc, a large energy-related conglomerate, performed extremely
well in both the last six- and 12-month periods. In addition, banks
performed well, particularly Banco de Galicia. Liquidity has improved
significantly since the March 1995 low and banks have benefited the most
from this better environment.
Q. WERE THERE ANY DISAPPOINTMENTS?
A. They were very limited. However, at one point during the period, the
fund purchased a large position in the telecommunications company Telefonos
de Mexico. At the time of purchase, the stock appeared cheap relative to
what I believed to be its value. After about three and one-half years of
underperformance, the stock appeared to be poised for a period of
outperformance. Indeed, the stock did begin to do well for a time. However,
new fees regarding interconnection knocked the stock down. Even though I
sold some of the stock at a small profit, its performance was disappointing
relative to other holdings.
Q. WHAT'S AHEAD FOR THE FUND?
A. In my opinion, regional currencies aren't likely to remain at
tremendously cheap levels over the near term as they did in 1995. As a
result, companies with large export businesses aren't likely to receive the
same lift they enjoyed last year. So I'll most likely move away from
companies with significant export revenues. Instead, I'll look for
opportunities in companies that can benefit from falling interest rates,
such as banks, construction companies and other "early cycle" companies
that tend to do well in the early stages of an economic recovery.

FUND FACTS
GOAL: high total investment return by investing
mainly in equity and debt securities of Latin
American issuers
START DATE: April 19, 1993
TRADING SYMBOL: FLATX
SIZE: as of April 30, 1996, more than
$619 million
MANAGER: Patti Satterthwaite, since 1993;
assistant manager, Latin American portion
of Fidelity Emerging Markets Fund, since
1990; securities and Latin American analyst,
1986-1990; joined Fidelity in 1986
(checkmark)
PATTI SATTERTHWAITE'S OUTLOOK FOR LATIN AMERICAN
MARKETS:
"Despite fears to the contrary, it became clear during
the past 12 months that Latin American countries
would not return to their former ways of racking up
large budget deficits, creating hyperinflation and
devaluing their currencies. What investors are
waiting to see now is if Latin American countries will
experience economic growth. At this point, there are
some signs of a recovery, but a clear trend toward
growth has not yet been established.
"In addition to internal factors, the regional
economies will be affected by what happens to the
health of the world economy. The direction of U.S.
interest rates will be important to the region, since
many Latin American countries depend on external
capital. Relatively low U.S. interest rates could help
keep Latin America countries' debt costs at a
manageable level.
"In Mexico, there are some very encouraging signs
of growth. The rate of inflation has come down a lot,
the government has managed to post budget
surpluses over the past five fiscal quarters and
consumer confidence is improving every day,
although at a very slow pace. Some observers
predict that the Mexican economy - which
experienced its worst recession in nearly four
decades - will give way in the second half of 1996
to at least moderate growth. Eventually we could see
an economic expansion for many of the main
economies elsewhere in the region."
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
LATIN AMERICA
INVESTMENT CHANGES

GEOGRAPHIC DIVERSIFICATION
AS OF APRIL 30, 1996
United States 8.0%
Argentina 14.9%
Row: 1, Col: 1, Value: 8.0
Row: 1, Col: 2, Value: 3.4
Row: 1, Col: 3, Value: 7.5
Row: 1, Col: 4, Value: 23.4
Row: 1, Col: 5, Value: 5.4
Row: 1, Col: 6, Value: 37.4
Row: 1, Col: 7, Value: 14.9
Panama 3.4%
Other 7.5%
Brazil 37.4%
Mexico 23.4%
Chile 5.4%
AS OF OCTOBER 31, 1995

United States 5.7%
Peru 3.8%
Row: 1, Col: 1, Value: 5.7
Row: 1, Col: 2, Value: 3.8
Row: 1, Col: 3, Value: 5.8
Row: 1, Col: 4, Value: 4.9
Row: 1, Col: 5, Value: 21.1
Row: 1, Col: 6, Value: 7.3
Row: 1, Col: 7, Value: 37.5
Row: 1, Col: 8, Value: 13.9
Argentina 13.9%
Panama 5.8%
Other 4.9%
Brazil 37.5%
Mexico 21.1%
Chile 7.3%
ASSET ALLOCATION
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Stocks 91.6 92.4

Bonds 0.4 2.3

Short-term investments 8.0 5.3

TOP TEN STOCKS

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

Grupo Carso SA de CV Class A-1 4.6 3.6
(Mexico, Conglomerates)

Telebras Sponsored ADR 4.0 0.0
(Brazil, Telephone Services)

Telesp PN (Pfd. Reg.) 3.5 3.2
(Brazil, Telephone Services)

Panamerican Beverages, Inc. 3.4 4.5
Class A
(Panama, Beverages)

Bradesco PN 3.4 2.5
(Brazil, Banks)

Perez Companc Class B 2.8 3.8
(Argentina, Basic Industries)

Banco de Galicia Y Buenos Aires SA sponsored ADR representing Class B shares (Argentina, Banks) 2.7 1.5

Brahma (Cia Cervejaria) PN Class B 2.7 3.1
(Pfd. Reg.) (Brazil, Beverages)

Telebras PN (Pfd. Reg.) 2.5 2.3
(Brazil, Telephone Services)

Telebras ON 2.4 2.5
(Brazil, Telephone Services)

</TABLE>

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

Utilities 27.9 23.5

Nondurables 17.1 16.1

Finance 17.0 15.0

Basic Industries 8.9 16.0

Construction & Real Estate 5.2 6.0

Energy 4.7 1.6

Retail & Wholesale 4.0 4.2

Durables 2.9 3.8

Holding Companies 2.2 1.7

Media & Leisure 1.3 0.9

LATIN AMERICA
INVESTMENTS APRIL 30, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 90.9%
SHARES VALUE (NOTE 1)
ARGENTINA - 14.5%
Astra Comp Argentina de Petroleum
(Reg.) 1,455,890 $ 3,094,123
Banco de Galicia Y Buenos Aires SA
sponsored ADR representing
Class B shares 698,801 16,421,824
Bansud SA Class B (a) 204,552 1,963,915
Central Costanera SA ADR (c) 111,300 3,756,375
Disco SA sponsored ADR (a) 84,500 1,341,438
IRSA (Inversiones Y Representa) SA GDR 25,000 750,000
Interamericania de Auto Ord. 121,400 704,197
Mirgor Sacifia Class C sponsored
ADR (c) 245,710 675,703
Molinos Rio de La Plata SA Class B (Reg) 334,296 3,477,061
Perez Companc Class B 2,741,530 17,054,193
Telecom Argentina Class B
sponsored ADR 15,800 714,950
Telecom Argentina Stet France
Telecom SA 1,184,400 5,354,077
Telefonica de Argentina SA
sponsored ADR 361,400 10,570,950
Telefonica de Argentina SA Class B 2,193,000 6,404,264
TGS (Transportadora de Gas del Sur)
SA Class B sponsored ADR 150,400 1,936,400
YPF Sociedad Anonima sponsored
ADR representing Class D shares 585,700 12,812,188
87,031,658
BERMUDA - 1.6%
Credicorp Ltd. 549,465 9,340,905
BRAZIL - 36.7%
Acesita Cia Acos Especiais Itabira Ord. 732,795,366 3,161,793
Brasmotor PN 21,952,100 5,975,166
Bradesco PN 1,791,389,585 20,226,401
Brahma (Cia Cervejaria) :
ON (warrants) (a) 117,827 27,320 PN Class B (Pfd. Reg.) 33,808,095
16,257,332
PN (warrants) (a) 1,510,428 380,671
PN (Pfd. Reg.) (warrants) (a) 1,895,770 95,558
Celesc PN Class B Ord. (a) 5,371,000 3,519,482
Compania Energertica de Minas Gerais 53,800,000 1,355,916
Compania Vale do Rio Doce PN Ord. 62,000 1,137,557
Compania Paulista de Forca Luz Ord. 74,903,597 4,837,267
Coteminas PN 21,225,310 8,901,386
Dixie Toga SA (a) 882,400 827,292
Eletrobras:
ON 5,979,000 1,440,578
PN Class B 53,105,110 13,116,341
Iven SA (a) 5,895,300 2,674,414
Itaubanco PN (Pfd. Reg.) 20,629,100 8,069,046
Itausa Investimentos Itau SA 10,996,000 7,537,960
Klabin Industria de Papel e Celulose PN 6,243,165 6,167,954
Light Participacoes SA 22,995,400 2,425,070
Lojas Americanas SA 64,208,300 1,488,779
Marco Polo PN Ord. Class B 4,052,000 833,316
Minas Gerais State Preference
(warrants) (a)(c) 2,000 36,000
Perdigao SA Comercio e Industria PDG
(Pfd. shares) 1,461,114,630 2,636,581
Perdigao SA Comercio e Industria PDG 23,222,143 46,820
Petrobras PN (Pfd. Reg.) 105,381,000 12,270,279
Rhodia Ster SA GDR (c) 214,000 1,685,250
Serrana SA (a) 58,700 38,465
Souza Cruz Industria Comerico 655,600 5,122,133

SHARES VALUE (NOTE 1)
BRAZIL - CONTINUED
Telebras:
ON 341,974,800 $ 14,513,992
PN (Pfd. Reg.) 279,196,597 15,114,531
sponsored ADR 445,100 24,091,038
Telesp:
ON 580,000 91,799
PN (Pfd. Reg.) 119,030,857 21,239,438
Telepar PN 7,029,944 2,622,188
Telemig (Telecomunicacoes de Minas
Gerais) SA Class B 29,300,000 2,395,515
Unibanco PN 111,478,537 4,765,050
Votorantim Celulose e Paper SA
(Pfd. Reg.) 145,251,499 2,752,894
219,878,572
CANADA - 0.0%
Bolivar Goldfields Ltd. (a) 51,750 62,690
CHILE - 5.4%
Banco Edwards SA, Series A
sponsored ADR 11,800 249,275
Banco Osorno y la Union SA, Series A
sponsored ADR 409,100 6,187,638
Chilectra SA sponsored ADR 40,400 2,201,800
Cristalerias de Chile SA sponsored ADR 124,700 2,961,625
Empresa Nacional de Electricidad SA 56,500 1,101,750
Enersis SA sponsored ADR 285,700 8,499,575
Madeco SA ADR 66,200 1,655,000
Provida SA sponsored ADR 124,300 2,843,363
Santa Isabel SA sponsored ADR (a) 14,700 424,463
Soc Quimica y Minera de Chile ADR 91,100 4,873,850
Vina Concha Stet y Toro SA
sponsored ADR 97,500 1,633,125
32,631,464
COLOMBIA - 1.9%
Banc Industrial Colombiano
sponsored ADR 68,100 1,336,463
Banco de Colombia GDR (c) 579,500 4,636,000
Banco de Bogota 24,748 143,308
Carulla & CIA SA Class B sponsored
ADR (c) 105,840 675,259
Compania Nacional de Chocolates 136,000 1,139,682
Noel (Industria Alimenticias) 94,613 276,164
Suramericana de Seguros SA 175,750 3,243,443
11,450,319
LUXEMBOURG - 0.7%
Quilmes Industrial SA 111,000 1,332,000
Quilmes Industrial SA sponsored ADR (a) 232,900 2,765,688
4,097,688
MEXICO - 23.4%
Apasco SA de CV 805,600 4,378,379
BANACCI SA de CV :
Class B (a) 1,316,000 3,038,425 Class L 39,480 81,249
Cemex SA, Series B 2,579,613 11,028,150
Cifra SA Class C (a) 8,508,200 11,336,618
Corporacion Geo SA de CV Class B
sponsored ADR (c) 40,800 632,400
Corporacion Geo SA de CV (a) 781,873 3,100,076
DESC (Sociedad de Fomento Industrial SA)
Class B (a) 1,052,500 5,266,049
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
MEXICO - CONTINUED
Empresas Ica Sociedad Controladora SA
de CV sponsored ADR representing
Ord. participation certificate 395,700 $ 5,490,338
Emvasa del Valle de Enah Ord. 2,243,600 1,452,364
Far-Ben SA de CV, Series B 1,698,700 2,657,440
Fomento Economico Mexicano SA
de CV Class B 2,105,600 6,360,815
Fondo Opcion SA de CV Class 2,
Series B (a) 142,000 111,072
Gruma SA Class B 877,396 3,549,815
Grupo Carso SA de CV Class A-1 (a) 3,629,100 27,750,502
Grupo Cementos Chihuahua Class B 6,601,300 6,214,035
Grupo Elektra SA 805,600 5,415,935
Grupo Financiero Bancomer Class B (a) 11,965,300 5,325,083
Grupo Financiero Banorte SA de CV
Class B (a) 1,557,056 2,171,269
Grupo Financiero Inbursa SA Class B 2,483,000 9,677,505
Grupo Modelo SA de CV Class C Ord. (a) 1,701,500 8,019,882
Grupo Posadas SA de CV:
Ord. 1,292,000 583,709
Class A (rights) (a) 276,857 -
Grupo Televisa SA de CV
sponsored ADR (a) 223,100 6,916,100
Herdez SA de CV Class A (a) 1,567,900 488,449
Kimberly Clark de Mexico SA Class A 55,000 1,008,766
Sears Roebuck de Mexico SA de CV (a) 638,900 1,594,019
Telefonos de Mexico SA sponsored ADR
representing shares Ord. Class L 191,500 6,511,000
Tubos De Acero De Mexico ADR 49,600 421,600
140,581,044
PANAMA - 3.4%
Panamerican Beverages, Inc. Class A 462,900 20,309,738
PERU - 2.7%
Banco Wiese Ltd. 304,773 545,728
Banco Wiese Ltd. sponsored ADR 270,519 1,826,003
Cementos Notre Pacasmayo SA Class T 146,582 228,504
Compania de Minas Buenaventure SA 100,522 847,036
Compania de Minas Buenaventure SA :
Class T 46,033 387,891
Class A (rights) (a) 25,130 -
Class T (rights) (a) 11,508 -
Minsur SA Class T 38,670 312,814
Tele 2000 SA (a) 251,376 402,456
Telefonica del Peru SA (CPT) Class B 5,097,514 11,382,694
15,933,126
UNITED KINGDOM - 0.1%
Antofagasta Holdings PLC 140,000 738,577
VENEZUELA - 0.5%
Electricidad de Caracas 1,631,114 1,285,000
Mavesa SA sponsored ADR (c) 342,622 1,713,110
2,998,110
TOTAL COMMON STOCKS
(Cost $511,512,668) 545,053,891
NONCONVERTIBLE PREFERRED STOCKS - 0.7%
BRAZIL - 0.7%
COSIPA (CIA Sidurg Paulista) Class B (a)
(Cost $6,484,930) 3,426,400 3,972,337
GOVERNMENT OBLIGATIONS (E) - 0.4%
MOODY'S PRINCIPAL VALUE
RATINGS AMOUNT (C) (NOTE 1)
ARGENTINA - 0.4%
Argentina Republic BOCON
Brady euro par
5 1/4%, 3/31/23 (b) B2 $ 2,000,000 $ 1,088,760
Province of Chaco, Argentina
11 7/8%, 9/10/97 (d) - 1,300,001 1,405,009
TOTAL GOVERNMENT OBLIGATIONS
(Cost $2,365,369) 2,493,769
REPURCHASE AGREEMENTS - 8.0%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.33%, dated
4/30/96 due 5/1/96 $ 47,913,093 47,906,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $568,268,967) $ 599,425,997
LEGEND
(a) Non-income producing
(b) Debt obligation initially issued at one coupon which converts to a
higher coupon at a specified date.
(c) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $13,810,097 or 2.2% of net
assets.
(d) Restricted securities - investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on each holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
Province of Chaco, Argentina
11 7/8%, 9/10/97 3/9/94 $ 1,354,597
(e) Some foreign government obligations have not been individually rated by
S&P or Moody's. The ratings listed are assigned to securities by FMR, the
fund's investment adviser, based principally on S&P and Moody's ratings of
the sovereign credit of the issuing government.
(f) Principal amount is stated in United States dollars unless otherwise
noted.
OTHER INFORMATION
At the end of the period, restricted securities (excluding 144A issues)
amounted to $1,405,009 or 0.2% of net assets.
Purchases and sales of securities, other than short-term securities,
aggregated $210,088,671 and $192,251,646, respectively.
The fund placed a portion of its portfolio transactions with brokerage
firms which are affiliates of FMR. The commissions paid to these affiliated
firms were $27,832 for the period.
INCOME TAX INFORMATION
At April 30, 1996, the aggregate cost of investment securities for income
tax purposes was $571,884,632. Net unrealized appreciation aggregated
$27,541,365, of which $93,056,671 related to appreciated investment
securities and $65,515,306 related to depreciated investment securities.
At October 31, 1995, the fund had a capital loss carryforward of
approximately $147,408,000 all of which will expire on October 31, 2003.
MARKET SECTOR DIVERSIFICATION
As a Percentage of Total Value of Investment in Securities
Basic Industries 8.9%
Construction & Real Estate 5.2
Durables 2.9
Energy 4.7
Finance 17.0
Government Obligations 0.4
Holding Companies 2.2
Media & Leisure 1.3
Nondurables 17.1
Precious Metals 0.3
Repurchase Agreements 8.0
Retail & Wholesale 4.0
Services 0.1
Utilities 27.9
100.0%
LATIN AMERICA
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996 (UNAUDITED)

ASSETS

Investment in $ 599,425,997
securities,
at value
(including
repurchase
agreements
of
$47,906,000)

(cost
$568,268,967
) - See
accompanyin
g schedule

Cash 434

Receivable for 27,741,025
investments
sold

Receivable for 1,645,295
fund shares
sold

Dividends 4,119,703
receivable

Interest 44,888
receivable

Redemption 192
fees
receivable

Other 9,750
receivables

TOTAL ASSETS 632,987,284

LIABILITIES

Payable for $ 10,798,698
investments
purchased

Payable for 2,197,229
fund shares
redeemed

Accrued 375,472
management
fee

Other payables 403,934
and
accrued
expenses

TOTAL 13,775,333
LIABILITIES

NET ASSETS $ 619,211,951

Net Assets
consist of:

Paid in capital $ 758,795,322

Undistributed 5,657,474
net
investment
income

Accumulated (176,273,152
undistributed )
net realized
gain (loss) on
investments
and foreign
currency
transactions

Net unrealized 31,032,307
appreciation
(depreciation
) on
investments
and assets
and liabilities
in
foreign
currencies

NET ASSETS, for $ 619,211,951
51,864,330
shares
outstanding

NET ASSET $11.94
VALUE and
redemption
price per
share
($619,211,95
1 (divided by)
51,864,330
shares)

Maximum $12.31
offering price
per share
(100/97.00 of
$11.94)

STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)

INVESTMENT $ 10,464,513
INCOME
Dividends

Interest 1,378,009

11,842,522

Less foreign (1,314,957
taxes )
withheld

TOTAL 10,527,565
INCOME

EXPENSES

Management $ 2,041,360
fee

Transfer agent 963,536
fees

Accounting 181,370
fees and
expenses

Non-interested 740
trustees'
compensatio
n

Custodian fees 368,408
and
expenses

Registration 45,320
fees

Audit 32,414

Legal 1,841

Miscellaneous 6,136

Total 3,641,125
expenses
before
reductions

Expense (6,547 3,634,578
reductions )

NET 6,892,987
INVESTMENT
INCOME

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

Investment (22,738,666
securities )

Foreign (291,214 (23,029,880
currency ) )
transactions

Change in net
unrealized
appreciation
(depreciation
) on:

Investment 124,243,923
securities

Assets and (56,689 124,187,234
liabilities in )
foreign
currencies

NET GAIN (LOSS) 101,157,354

NET INCREASE $ 108,050,341
(DECREASE)
IN NET ASSETS
RESULTING
FROM
OPERATIONS

OTHER $ 635,855
INFORMATION
Sales
charges paid
to FDC

Expense $ 1,732
reductions
Directed
brokerage
arrangements

Custodian 792
interest
credits

Transfer 4,023
agent
interest
credits

$ 6,547

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS SIX MONTHS YEAR ENDED
ENDED OCTOBER 31,
APRIL 30, 1996 1995
(UNAUDITED)

Operations $ 6,892,987 $ 5,687,217
Net
investment
income

Net realized (23,029,880) (150,178,950)
gain (loss)

Change in 124,187,234 (183,907,107)
net
unrealized
appreciation
(depreciation
)

NET INCREASE 108,050,341 (328,398,840)
(DECREASE)
IN NET
ASSETS
RESULTING
FROM
OPERATIONS

Distributions to (5,626,719) -
shareholders
from net
investment
income

Share 195,653,084 430,328,990
transactions
Net proceeds
from sales of
shares

Reinvestmen 5,493,610 -
t of
distributions

Cost of (151,147,584) (526,564,610)
shares
redeemed

Redemption 500,461 2,393,237
fees

NET INCREASE 50,499,571 (93,842,383)
(DECREASE)
IN NET
ASSETS
RESULTING
FROM SHARE
TRANSACTIO
NS

TOTAL 152,923,193 (422,241,223)
INCREASE
(DECREASE)
IN NET ASSETS

NET ASSETS

Beginning of 466,288,758 888,529,981
period

End of period $ 619,211,951 $ 466,288,758
(including
undistribute
d net
investment
income of
$5,657,474
and
$4,391,206
,
respectivel
y)

OTHER
INFORMATION
Shares

Sold 17,665,195 41,302,837

Issued in 552,484 -
reinvestment
of
distributions

Redeemed (14,161,301) (48,312,015)

Net increase 4,056,378 (7,009,178)
(decrease)

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

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
SIX MONTHS ENDED YEARS ENDED OCTOBER 31, APRIL 19, 1993
APRIL 30, 1996 (COMMENCEMENT
OF OPERATIONS) TO
OCTOBER 31,

</TABLE>

SELECTED PER-SHARE DATA (UNAUDITED) 1995 1994 D 1993

Net asset $ 9.75 $ 16.21 $ 13.28 $ 10.00
value,
beginning of
period

Income from
Investment
Operations

Net .14 .04 .07 .03
investment
income

Net realized 2.16 (6.52) 2.82 3.23
and
unrealized
gain (loss)

Total from 2.30 (6.48) 2.89 3.26
investment
operations

Less (.12) - (.05) -
Distributions
From net
investment
income

From net - - (.05) -
realized gain

Total (.12) - (.10) -
distributions

Redemption .01 .02 .14 .02
fees added to
paid in
capital

Net asset $ 11.94 $ 9.75 $ 16.21 $ 13.28
value, end of
period

TOTAL 23.94% (39.85)% 22.89% 32.80%
RETURN B, E

RATIOS AND
SUPPLEMENT
AL DATA

Net assets, $ 619,212 $ 466,289 $ 888,530 $ 342,934
end of period
(000 omitted)

Ratio of 1.37% A 1.41% 1.48% 1.94% A
expenses to
average net
assets

Ratio of net 2.60% A .97% .47% 1.21% A
investment
income to
average net
assets

Portfolio 76% A 57% 77% 72% A
turnover rate

Average $ .0003
commission
rate C

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
ANNUALIZED
TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR
ARE NOT ANNUALIZED.
FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS REQUIRED TO DISCLOSE ITS
AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE
CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON
THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION
RATE STRUCTURES MAY DIFFER.
EFFECTIVE NOVEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION 93-2, "DETERMINATION,
DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF INCOME, CAPITAL GAIN, AND RETURN
OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES." AS A RESULT, NET INVESTMENT INCOME
PER SHARE MAY REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE
PERIODS SHOWN (SEE NOTE 7 OF NOTES TO FINANCIAL STATEMENTS).

</TABLE>

NORDIC
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (income) and capital gains (the profits the
fund earns when it sells securities that have grown in value). The fund has
a 3% sales charge. If Fidelity had not reimbursed certain fund expenses
during the period shown, the total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIOD ENDED PAST 6
APRIL 30, 1996 MONTHS
*

NORDIC 8.00%

NORDIC (INCL. 3% SALES CHARGE) 4.76%

FT/S&P - Actuaries World Nordic Index 5.28%

European Region Funds Average 9.69%

LIFE OF FUND.

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months (since the fund started on
November 1, 1995). For example, if you invested $1,000 in a fund that had a
5% return over the past year, the value of your investment would be $1,050.
You can compare the fund's returns to the performance of the FT/S&P -
Actuaries World Nordic Index - an unmanaged index of 90 stocks from
Denmark, Finland, Norway and Sweden. The index is designed to provide
coverage of approximately 85% of investable equity available in each
market. To measure how the fund's performance stacked up against its peers,
you can compare the fund's performance to the European region funds
average, which reflects the performance of 46 funds with similar objectives
tracked by Lipper Analytical Services over the past six months. These
benchmarks include reinvested dividends and capital gains, if any, and
exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year. In the fund's next report we'll report these
numbers for the fund and the benchmarks.
$10,000 OVER LIFE OF FUND

The growth of a hypothetical $10,000 INVESTMENT in the fund will appear in
the fund's next report.

An interview with Colin Stone, Portfolio Manager of Fidelity Nordic Fund
Q. HOW DID THE FUND PERFORM, COLIN?
A. The fund had a return of 8.00% from its inception on November 1, 1995,
through the end of the period ending April 30, 1996. During the same
period, the FT/S&P - Actuaries World Nordic Index returned 5.28%, and the
European region funds average was 9.69%, according to Lipper Analytical
Services.
Q. WHAT WERE THE KEY FACTORS IN THE FUND'S PERFORMANCE?
A. The fund's technology holdings - the largest sector of the fund as of
the end of the period - were significant contributors to its success in its
inaugural reporting period. Within this sector, several of the holdings had
excellent performances indeed. Two Swedish software companies - Frontec and
IBS - were standouts, along with Vaisala, a Finnish manufacturer of weather
instrumentation equipment. By U.S. standards, these companies would be
considered small caps. Of the fund's more than 18% position in technology
on April 30, the largest sectors were computer services and software, and
communications equipment, market segments that generally performed well
during the period.
Q. THE FUND'S INVESTMENTS IN FINANCIAL SERVICES COMPANIES WERE ALSO A
RATHER SIGNIFICANT PORTION OF THE PORTFOLIO.
A. Yes they were. Their performance over the past six months has been
pretty volatile due to the movement in interest rates. While the overall
performance of this sector has been mixed, the fund had a very positive
contribution from Foreningsbanken, which is actually the smallest listed
bank in Sweden and the last recovery play in that nation's banking
industry. Its asset-quality problems are still in the process of being
worked out and it's the cheapest stock in the sector as far as valuation.
The fund's largest holding in Finland, insurance company Pohjola, also
performed well during the period.
Q. HEALTH CARE, THE FUND'S THIRD LARGEST SECTOR, SAW VERY STRONG GAINS IN
1995. DID THAT CARRY OVER TO THIS PERIOD?
A. The fund's largest holding as of April 30, Swedish-based Astra, is a
major health care company, and 12% of the fund was invested in this sector
at the end of the period. However, I'm actually underweighted relative to
my benchmark index. There's a couple of reasons why. First, while Astra
represented more than 8% of the fund's holdings at the period's end, it
represents more than 12% of my benchmark. Like many of my peers, however, I
cannot have more than 10% of the fund invested in one company. Second, and
more important, I think, health care stocks' strong outperformance last
year may not be repeated during the coming year, and I believe
pharmaceutical companies' earnings will be more in line with the market. I
think the assets I've reserved by underweighting this sector compared to
the benchmark can be redeployed to work better elsewhere.
Q. WELL-KNOWN COMPANIES SUCH AS ERICSSON AND VOLVO ARE AMONG THE LARGEST
HOLDINGS. IN ONE CASE, THE FUND IS UNDERWEIGHTED RELATIVE TO THE BENCHMARK;
IN THE OTHER, IT'S SLIGHTLY OVERWEIGHTED.
A. That's true. Ericsson is one of the world's leading companies in mobile
telephony, both in the infrastructure of networks and also in handsets.
It's in a market with strong growth anticipated for several years to come,
but one that has suffered from intense price competition recently. The
company represented 5.8% of the fund's holdings at the end of the period,
even though it's about 10% of the fund's benchmark. Volvo has been an
interesting story. It has a very high percentage of cash and short-term
securities on its balance sheet, but the stock hasn't performed well of
late. It's suffered due to high product development costs leading to future
models, part of the company's transition from a manufacturer of safe, but
dull family cars to a manufacturer of much more interesting and
fun-to-drive, but still safe, cars. During the period, I felt that Volvo's
investment could pay off and that pressure on its profits in the short-term
were mostly discounted in the stock's price. The fund has a slight
overweighting in the stock relative to the benchmark.
Q. MOVING FROM HIGH TECH AND MANUFACTURING TO BASIC INDUSTRIES, YOU'VE
INCREASED THE FUND'S HOLDINGS IN PAPER AND FOREST PRODUCTS COMPANIES
RECENTLY.
A. Yes, in fact I've taken this sector from about 3%-4% of our holdings to
more than 7% at the end of the period. I felt that many of the stocks in
this sector had gotten so cheap and the sentiment was so negative that the
stocks had very little downside left and that even a modest amount of good
news could drive the stocks up a fair way. Most of the fund's investments
have been in two Swedish companies - Stora Kopparbergs, which is one of the
fund's largest holdings, and Mo Och Domsjoe.
Q. WHILE THE FUND HAS LIMITED EXPOSURE TO THE RETAIL SECTOR, ONE OF ITS
LARGEST HOLDINGS - HENNES & MAURITZ - IS AN INTERESTING STORY.
A. A clothing retailer similar to the Gap, this has been one of Europe's
best retail growth stories, growing space at a double-digit pace with
excellent return on investment on their stores. It started in Sweden, now
has stores across much of the Continent, and is one of the few examples of
a European retail format that works well outside of its home market.
Q. WHAT WERE THE DISAPPOINTMENTS DURING THE FUND'S FIRST REPORTING PERIOD?
A. While the domestic economies - meaning the non-export driven businesses
- - have performed well in Denmark, Finland and Norway, Sweden - where the
portfolio is most heavily invested - remains sluggish. As an example, TV 4,
the largest commercial television station in the country, has suffered from
less-than-expected advertising revenues, and it's been a poor stock over
the past six months. Ericsson has also been a disappointment, with earnings
depressed by strong competition in the mobile handset market and, because
the company is such a big exporter, by the strengthening Swedish krona.
Q. WHAT'S YOUR OUTLOOK FOR THE NEXT SEVERAL MONTHS?
A. I'm concerned about bad news on corporate earnings from cyclical
companies and would hope to position the fund accordingly. I think the
interest rate environment will remain favorable, with the possibility of
further short-term rate reductions. On average, I think the valuations of
the average Nordic company are still lower than many other European
companies, and that provides pretty good support. If the real drivers of
the global economy - the United States, Japan, and continental Europe -
experience growth together, I feel a lot of the industrial companies in the
Nordic region can perform extremely well.

FUND FACTS
GOAL: long-term growth of capital by
investing mainly in equity securities of
issuers in Denmark, Finland, Norway and
Sweden
START DATE: November 1, 1995
TRADING SYMBOL: FNORF*
SIZE: as of April 30, 1996, more than
$7.9 million
MANAGER: Colin Stone, since inception; also
manager of Fidelity International, Limited's
Fidelity Nordic Fund, Fidelity Iberia Fund and
Fidelity New Europe Fund, analyst covering
oil, oil service, leisure and engineering
industries, 1987-1993; joined Fidelity in 1987
* TEMPORARY TRADING SYMBOL
(checkmark)
COLIN STONE ON INVESTING IN THE NORDIC COUNTRIES:
"The environment for corporate profitability
deteriorated during the fourth quarter of 1995 and
we've seen pretty steady downward earnings
revisions for European companies as a whole, with
Scandinavian companies being no exception. The
more cyclical areas of the market have
underperformed considerably over the past six to 12
months.
"Still, Scandinavia is a very fertile stock-picking region,
and one where Fidelity is overweighted in many of our
more diversified funds. I believe the Nordic region
holds excellent potential for investors. There's a very
strong equity culture here - as there has been
historically - and companies'
shareholder-friendliness is shown in a number of
ways. Standards of corporate disclosure and
management information are very high; there are
quarterly reports with good balance sheet, cash flow
and P&L data; and management just really tends to
manage with the best interests of shareholders in
mind. The region holds excellent potential for
another intrinsic reason, I think. Nordic countries
have had to be export-driven from a very early stage
because, given their small domestic populations,
their native markets are quickly saturated.
"The economies of the Nordic countries tend to be
built around manufacturing, particularly in
Sweden, and a lot of basic materials, including
forest products and metals. Oil is very important in
Norway and Denmark. Manufacturing and
engineering are significant components of the
Finnish economy. However, I feel that these are all
areas where earnings disappointments could
continue to come, and I have positioned the fund
with a greater weighting on technology and
financials, although the other sectors I mentioned
are still represented in the portfolio.
"In general, European economies slowed sharply in
the fourth quarter of 1995, partly due to sluggish
end-demand and partly due to an inventory
correction. Many industries had built up excess
stock in 1995 because demand was surprisingly
strong. As it turned out, much of the demand was
just stock building by corporate end-users building
up inventory in metals and paper, which are quite big
in the Nordic region. We've seen a very savage
inventory correction over the past six months, with a
big swing from what we call "stock build" to "stock
draw," or the drawing down of inventory. That's had a
big impact on the apparent demand for
commodities. As an example, we've seen the price
of paper pulp collapse from about $1000 per ton to
around $550 per ton. We've also seen the prices of
steel, stainless steel and other commodities decline
quite dramatically.
"Some Nordic industries move in tandem with their
European counterparts, and some do not.
Scandinavian paper companies trade pretty much like
paper companies elsewhere in Europe. The same is
true for metals companies. But in other instances,
there are some very real differences from country to
country and sector to sector. For instance, in financial
services, the different Nordic countries frequently are
subject to domestic interest rates quite different from
their neighbors."
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.

NORDIC
INVESTMENT SUMMARY

GEOGRAPHIC DIVERSIFICATION
AS OF APRIL 30, 1996
United States
8.3%
Denmark 12.4%
Row: 1, Col: 1, Value: 8.300000000000001
Row: 1, Col: 2, Value: 52.8
Row: 1, Col: 3, Value: 12.5
Row: 1, Col: 4, Value: 14.0
Row: 1, Col: 5, Value: 12.4
Finland 14.0%
Norway 12.5%
Sweden 52.8
%
ASSET ALLOCATION
% OF FUND'S
INVESTMENTS

Stocks 92.8

Short-term investments 7.2

TOP TEN STOCKS
% OF FUND'S
INVESTMENTS

Astra AB Class A Free shares 8.3
(Sweden, Drugs & Pharmaceuticals)

Ericsson (L.M.) Telephone Co. Class B 5.8
(Sweden, Communications Equipment)

Volvo AB Class B 5.3
(Sweden, Autos, Tires, & Accessories)

Stora Kopparbergs Bergslags AB Class A Free shares 3.5
(Sweden, Paper & Forest Products)

Hennes & Mauritz AB Class B Free shares 3.1
(Sweden, Apparel Stores)

SKF AB Ord. 2.9
(Sweden, Industrial Machinery & Equipment)

Frontec AB Series B 2.8
(Sweden, Computer Services & Software)

Skandia Foersaekrings AB 2.6
(Sweden, Insurance)

Pohjola Class B 2.4
(Finland, Insurance)

Foreningsbanken AB Class A Ord. 2.4
(Sweden, Banks)

TOP TEN MARKET SECTORS
% OF FUND'S
INVESTMENTS

Technology 18.3

Finance 17.5

Health 12.0

Durables 9.4

Basic Industries 7.2

Industrial Machinery & Equipment 6.5

Nondurables 4.8

Construction & Real Estate 4.1

Retail & Wholesale 3.1

Media & Leisure 2.8

NORDIC
INVESTMENTS APRIL 30, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 92.8%
SHARES VALUE (NOTE 1)
DENMARK - 12.4%
Crisplant Industries AS (a) 1,300 $ 91,379
Danisco AS 100 4,878
Den Danske Bank Group AS 2,639 172,089
Falck A/S 750 129,573
Fredgaard Radio A/S 1,500 131,606
International Service Systems AS,
Series B 5,050 142,844
Incentive AS 1,078 59,524
Syd-Sonderjylland Holding 2,100 62,602
Unidanmark AS Class A 4,117 183,396
977,891
FINLAND - 14.0%
Cultor OY, Series 1 3,902 165,252
Finlandia Interface Oy:
Class A 800 21,485
Class A (RFD) 800 20,163
Fiskars OY, Series A 1,100 55,675
Hartwall Oy AB Class A 2,613 53,981
Huhtamaki Ord. 4,539 150,033
KCI (Konecranes International) (a) 400 7,272
Martela Oy Class A 1,200 24,543
Pohjola Class B 11,951 188,873
Repola OY 7,400 143,091
Spontel OY Class A 10,000 51,027
Talentum Oy Class B 1,700 15,453
TT Teito Oy 3,309 116,212
Vaisala Oy Class A 1,900 89,494
1,102,554
NORWAY - 12.5%
Ark AS 4,333 76,127
Ekornes AS (Reg.) 5,000 67,690
Fokus Bank AS (a) 6,000 32,309
Hafslund Nycomed AS Class A 5,300 155,597
Nera AS 4,420 160,689
NCL Holdings AS 10,900 26,860
SE (System Etikettering) AS 4,269 66,885
Saga Petroleum AS Class B 3,380 45,759
Sparebanken Midt-Norge 2,900 67,934
Sparebanken Norway primary
shares certificates 3,717 90,465
Steen & Stroem Invest AS 7,435 117,620
Tomra Systems AS 8,108 75,233
983,168
SWEDEN - 52.8%
ASG AB Class B Free shares Ord. 4,245 75,619
Allgon AB Class B Free shares 5,700 86,853
Astra AB Class A Free shares 14,724 653,552
Autoliv AB 2,600 141,626
Bergman & Beving AB Class B
Free shares 1,344 37,594
Concordia Maritime AB Class B
Free shares 37,540 83,452
Ericsson (L.M.) Telephone Co. Class B 22,486 455,179
Euroc AB, Series A 3,339 95,856
Foreningsbanken AB Class A Ord. 68,900 185,625
Frontec AB (a):
Series B 4,824 216,608
Series B (rights) 4,824 16,760
Hennes & Mauritz AB Class B Free shares 3,525 242,869
IBS (International Business Systems) AB
Class B Free shares 4,100 97,784

SHARES VALUE (NOTE 1)
Iro AB 7,067 $ 67,626
Mo Och Domsjoe AB Class B 2,800 148,810
NCC AB Class B Free shares 11,000 112,550
Nordictel Holding AB 900 12,057
Pricer AB Class B 1,800 33,920
SKF AB Ord. 9,974 232,003
Scania AB (a):
Class A 300 8,303
Class B 300 8,281
Skandia Foersaekrings AB 9,010 205,600
Stora Kopparbergs Bergslags AB Class A
Free shares 20,200 272,107
Svedala Industri Free shares 4,120 147,391
Svenska Handelsbanken 2,187 44,754
TV 4 AB Class A (a) 2,725 50,347
Volvo AB Class B 18,328 419,578
4,152,704
UNITED STATES OF AMERICA - 1.1%
Pharmacia & Upjohn, Inc. 846 32,360
Pharmacia & Upjohn, Inc. Unit 1,490 56,594
88,954
TOTAL COMMON STOCKS
(Cost $6,960,134) 7,305,271
REPURCHASE AGREEMENTS - 7.2%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.33%, dated
4/30/96 due 5/1/96 $ 568,084 568,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $7,528,134) $ 7,873,271
LEGEND
(a) Non-income producing
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $8,507,575 and $1,553,364, respectively.
The fund placed a portion of its portfolio transactions with brokerage
firms which are affiliates of FMR. The commissions paid to these affiliated
firms were $826 for the period.
INCOME TAX INFORMATION
At April 30, 1996, the aggregate cost of investment securities for income
tax purposes was $7,528,134. Net unrealized appreciation aggregated
$345,137, of which $561,407 related to appreciated investment securities
and $216,270 related to depreciated investment securities.
MARKET SECTOR DIVERSIFICATION
As a Percentage of Total Value of Investment in Securities
Basic Industries 7.2%
Construction & Real Estate 4.1
Durables 9.4
Energy 0.6
Finance 17.5
Health 12.0
Holding Companies 0.7
Industrial Machinery & Equipment 6.5
Media & Leisure 2.8
Nondurables 4.8
Repurchase Agreements 7.2
Retail & Wholesale 3.1
Services 1.6
Technology 18.3
Transportation 2.0
Utilities 2.2
100.0%
NORDIC
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996 (UNAUDITED)

ASSETS

Investment in $ 7,873,271
securities, at
value
(including
repurchase
agreements
of $568,000)
(cost
$7,528,134)
- - See
accompanyin
g schedule

Cash 674

Receivable for 59,503
fund shares
sold

Dividends 50,116
receivable

Redemption 204
fees
receivable

Prepaid 14,089
expenses

Receivable 6,820
from
investment
adviser for
expense
reductions

TOTAL ASSETS 8,004,677

LIABILITIES

Payable for $ 35,583
investments
purchased

Payable for 30,678
fund shares
redeemed

Other payables 30,776
and
accrued
expenses

TOTAL 97,037
LIABILITIES

NET ASSETS $ 7,907,640

Net Assets
consist of:

Paid in capital $ 7,492,438

Undistributed 64,639
net
investment
income

Accumulated 5,324
undistributed
net realized
gain (loss) on
investments
and foreign
currency
transactions

Net unrealized 345,239
appreciation
(depreciation
) on
investments
and assets
and liabilities
in
foreign
currencies

NET ASSETS, for $ 7,907,640
732,451
shares
outstanding

NET ASSET $10.80
VALUE and
redemption
price per
share
($7,907,640
(divided by) 732,451
shares)

Maximum $11.13
offering price
per share
(100/97.00 of
$10.80)

STATEMENT OF OPERATIONS
NOVEMBER 1, 1995 (COMMENCEMENT OF
OPERATIONS) TO
APRIL 30, 1996 (UNAUDITED)

INVESTMENT $ 118,648
INCOME
Dividends

Interest 9,115

127,763

Less foreign (17,781
taxes )
withheld

TOTAL 109,982
INCOME

EXPENSES

Management $ 17,436
fee

Transfer agent 8,067
fees

Accounting 27,322
fees and
expenses

Non-interested 6
trustees'
compensatio
n

Custodian fees 52,501
and
expenses

Registration 20,297
fees

Audit 14,954

Total 140,583
expenses
before
reductions

Expense (95,240 45,343
reductions )

NET 64,639
INVESTMENT
INCOME

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

Investment 5,923
securities

Foreign (599 5,324
currency )
transactions

Change in net
unrealized
appreciation
(depreciation
) on:

Investment 345,137
securities

Assets and 102 345,239
liabilities in
foreign
currencies

NET GAIN (LOSS) 350,563

NET INCREASE $ 415,202
(DECREASE)
IN NET ASSETS
RESULTING
FROM
OPERATIONS

OTHER $ 39,101
INFORMATION
Sales
charges paid
to FDC

Expense $ 42
reductions
Custodian
interest
credits

FMR 95,198
reimburseme
nt

$ 95,240

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS NOVEMBER 1, 1995
(COMMENCEMENT
OF
OPERATIONS) TO
APRIL 30, 1996
(UNAUDITED)

Operations $ 64,639
Net
investment
income

Net realized 5,324
gain (loss)

Change in 345,239
net
unrealized
appreciation
(depreciation
)

NET INCREASE 415,202
(DECREASE)
IN NET
ASSETS
RESULTING
FROM
OPERATIONS

Share 8,506,455
transactions
Net proceeds
from sales of
shares

Cost of (1,024,506)
shares
redeemed

Redemption 10,489
fees

NET INCREASE 7,492,438
(DECREASE)
IN NET
ASSETS
RESULTING
FROM SHARE
TRANSACTIO
NS

TOTAL 7,907,640
INCREASE
(DECREASE)
IN NET ASSETS

NET ASSETS

Beginning of -
period

End of period $ 7,907,640
(including
undistribute
d net
investment
income of
$64,639)

OTHER
INFORMATION
Shares

Sold 830,697

Redeemed (98,246)

Net increase 732,451
(decrease)

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

</TABLE>

FINANCIAL HIGHLIGHTS
NOVEMBER 1, 1995
(COMMENCEMENT
OF
OPERATIONS) TO
APRIL 30, 1996
(UNAUDITED)

SELECTED PER-SHARE DATA

Net asset $ 10.00
value,
beginning of
period

Income from
Investment
Operations

Net .09
investment
income

Net realized .70
and
unrealized
gain (loss)

Total from .79
investment
operations

Redemption .01
fees added to
paid in
capital

Net asset $ 10.80
value, end of
period

TOTAL RETURN B, 8.00%
C

RATIOS AND
SUPPLEMENT
AL DATA

Net assets, $ 7,908
end of period
(000 omitted)

Ratio of 2.00% A,
expenses to D
average net
assets

Ratio of net 2.85% A
investment
income to
average net
assets

Portfolio 75% A
turnover rate

Average $ .0514
commission
rate E

PACIFIC BASIN
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (income) and capital gains (the profits the
fund earns when it sells securities that have grown in value). The fund has
a 3% sales charge. If Fidelity had not reimbursed certain fund expenses,
the past 1 year, past 5 years and life of fund total returns would have
been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED PAST 6 PAST 1 PAST 5 LIFE OF
APRIL 30, 1996 MONTHS YEAR YEARS FUND

PACIFIC BASIN 9.68% 8.22% 45.84% 104.52%

PACIFIC BASIN 6.39% 4.98% 41.47% 98.39%
(INCL. 3% SALES CHARGE)

Morgan Stanley Capital 18.04% 7.50% 36.48% 96.06%
International Pacific Index

Pacific Region Funds Average 13.50% 15.90% 60.28% n/a

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, five years, or
since the fund started on October 1, 1986. For example, if you invested
$1,000 in a fund that had a 5% return over the past year, the value of your
investment would be $1,050. You can compare the fund's returns to the
performance of the Morgan Stanley Capital International Pacific Index, a
broad measure of the performance of stocks in the Pacific region, weighted
by each country's market capitalization (or total value of its outstanding
shares). To measure how the fund's performance stacked up against its
peers, you can compare it to the Pacific region funds average, which
reflects the performance of 39 funds with similar objectives tracked by
Lipper Analytical Services over the past six months. These benchmarks
include reinvested dividends and capital gains, if any, and exclude the
effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED PAST 1 PAST 5 LIFE OF
APRIL 30, 1996 YEAR YEARS FUND

PACIFIC BASIN 8.22% 7.84% 7.75%

PACIFIC BASIN 4.98% 7.18% 7.41%
(INCL. 3% SALES CHARGE)

Morgan Stanley Capital 7.50% 6.42% 7.27%
International Pacific Index

Pacific Region Funds Average 15.90% 9.77% n/a

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
IMAHDR PRASUN SHR__CHT 19960430 19960524 170752 S00000000000001
Pacific Basin MS Pacific Index
00302 MS003
1986/10/01 9700.00 10000.00
1986/10/31 9603.00 8862.00
1986/11/30 10146.20 9399.07
1986/12/31 10611.80 10088.05
1987/01/31 12300.82 11598.87
1987/02/28 12689.17 11904.22
1987/03/31 13951.29 13131.82
1987/04/30 15349.33 15062.31
1987/05/31 15397.87 15062.31
1987/06/30 14329.93 14116.01
1987/07/31 14407.60 13782.70
1987/08/31 15203.70 15420.34
1987/09/30 14999.82 14974.05
1987/10/31 12058.11 13345.52
1987/11/30 12339.66 13875.39
1987/12/31 13264.02 14088.57
1988/01/31 13264.02 14793.36
1988/02/29 13813.42 15831.10
1988/03/31 14578.65 17064.31
1988/04/30 15118.23 17280.12
1988/05/31 14578.65 16620.65
1988/06/30 13744.74 16055.73
1988/07/31 13479.85 16785.08
1988/08/31 13430.80 15542.64
1988/09/30 13627.01 16142.75
1988/10/31 13725.12 17469.62
1988/11/30 14608.08 18911.35
1988/12/31 14649.48 19018.54
1989/01/31 14926.25 19193.41
1989/02/28 15252.46 19438.67
1989/03/31 14896.60 18821.29
1989/04/30 15282.11 18832.42
1989/05/31 14689.02 17780.12
1989/06/30 14006.96 16987.42
1989/07/31 15677.51 19192.02
1989/08/31 14837.29 18004.64
1989/09/30 16063.02 19105.05
1989/10/31 15598.43 18593.72
1989/11/30 16102.56 19478.89
1989/12/31 16325.66 19500.06
1990/01/31 15770.16 18396.74
1990/02/28 14782.59 16611.35
1990/03/31 13867.04 13619.98
1990/04/30 13712.73 13711.64
1990/05/31 15039.77 15616.28
1990/06/30 15266.09 14987.13
1990/07/31 15780.44 14873.33
1990/08/31 13681.87 13454.50
1990/09/30 11449.57 11345.09
1990/10/31 13260.10 13796.09
1990/11/30 12046.22 12266.22
1990/12/31 11882.90 12788.36
1991/01/31 12112.22 13186.92
1991/02/28 13206.70 14812.56
1991/03/31 13039.92 14005.66
1991/04/30 13602.80 14365.60
1991/05/31 13508.99 14309.99
1991/06/30 13279.67 13374.87
1991/07/31 13446.44 13825.95
1991/08/31 12539.59 13124.61
1991/09/30 13321.36 14157.05
1991/10/31 13707.03 14759.53
1991/11/30 13060.77 13809.99
1991/12/31 13373.48 14233.78
1992/01/31 13029.50 13682.29
1992/02/29 12904.42 12724.00
1992/03/31 12091.38 11513.90
1992/04/30 11966.29 10986.10
1992/05/31 12925.26 11842.95
1992/06/30 12654.25 10911.67
1992/07/31 12091.38 10759.99
1992/08/31 12445.78 12234.05
1992/09/30 12362.39 11953.73
1992/10/31 12508.32 11531.67
1992/11/30 12456.20 11749.15
1992/12/31 12354.67 11614.67
1993/01/31 12480.95 11593.05
1993/02/28 13207.07 12155.13
1993/03/31 14101.58 13623.52
1993/04/30 15532.78 15794.04
1993/05/31 16290.48 16253.52
1993/06/30 15448.59 15987.05
1993/07/31 16269.43 16932.23
1993/08/31 17016.60 17433.05
1993/09/30 17058.70 16781.05
1993/10/31 18395.19 17153.59
1993/11/30 17490.17 14733.35
1993/12/31 20250.36 15760.40
1994/01/31 20799.71 17584.75
1994/02/28 21004.37 18038.08
1994/03/31 19431.73 17042.36
1994/04/30 19970.31 17779.27
1994/05/31 20562.74 18202.23
1994/06/30 20476.56 18797.67
1994/07/31 20433.48 18394.37
1994/08/31 21402.91 18714.06
1994/09/30 21122.85 18245.66
1994/10/31 21499.85 18707.18
1994/11/30 19733.33 17663.27
1994/12/31 19680.70 17782.12
1995/01/31 17857.29 16659.13
1995/02/28 17565.54 16246.54
1995/03/31 18124.72 17493.87
1995/04/30 18331.37 18237.90
1995/05/31 18221.97 17508.42
1995/06/30 18051.78 16766.42
1995/07/31 19230.92 17975.25
1995/08/31 19024.27 17298.16
1995/09/30 18805.46 17458.39
1995/10/31 18088.25 16609.48
1995/11/30 17930.22 17426.12
1995/12/31 18477.25 18276.67
1996/01/31 18756.84 18307.67
1996/02/29 18355.68 18101.08
1996/03/31 18841.93 18656.24
1996/04/30 19838.73 19606.24
IMATRL PRASUN SHR__CHT 19960430 19960524 170757 R00000000000118

Let's say you invested $10,000 in Fidelity Pacific Basin Fund on October 1,
1986, when the fund started, and paid the 3% sales charge. By April 30,
1996, the value of your investment would have grown to $19,839 - a 98.39%
increase on your initial investment. That compares to $10,000 invested in
the Morgan Stanley Capital International Pacific Index, which would have
grown to $19,606 over the same period - a 96.06% increase.

NOTE TO SHAREHOLDERS: On May 1, 1996, Shigeki Makino was named manager of
the fund. The following is an interview with Simon Fraser (left photo), who
managed the fund during the period, with comments from Shigeki Makino on
his outlook and investment approach.
Q. SIMON, HOW DID THE FUND PERFORM?
S.F. For the six months ended April 30, 1996, the fund had a total return
of 9.68%. That trailed the Morgan Stanley Capital International Pacific
Index, which returned 18.04%, and the Pacific region funds average tracked
by Lipper Analytical Services, which returned 13.50% over the same period.
For the 12 months ended April 30, 1996, the fund returned 8.22%, while the
Morgan Stanley Capital International Pacific Index posted a 7.50% return
and the Pacific region funds average returned 15.90%.
Q. WHY DID THE FUND'S PERFORMANCE TRAIL THAT OF THE INDEX AND THE FUNDS
AVERAGE OVER THE PAST SIX MONTHS?
S.F. There were a number of factors. First, the fund had less invested in
Japan than the index and the funds average. While the Japanese market and
those in Southeast Asia posted positive returns, the Japanese market
performed better than the others. Since the fund had less invested in that
market during much of the period, it didn't keep up. Second, the fund's
assets grew markedly during the period, at times coming in large amounts
over short periods of time. While I tried to invest the new assets as
quickly as possible, there were times when the fund was holding on to large
amounts of cash. In an environment where the markets that the fund invests
in were moving steadily upward, the fund's short-term cash holdings proved
to be a drag on performance. Third, while I moved the fund's investments
more into Japan during the period, the Japanese portion of the fund
underperformed its competitors and the index because it was focused on the
technology sector. That sector didn't post the same strong returns as the
general market. Finally, the fund's performance was weaker than the average
fund because other funds hedged currency risk, while this fund did not,
specifically in Japan. While the fund's Japanese investments increased in
value during the period, their returns were dampened when translated back
into dollars, because the yen depreciated versus the dollar over the six
months.
Q. WHY DID YOU REORGANIZE THE FUND SO THAT IT HAD 75.1% INVESTED IN JAPAN
AT THE END OF THE PERIOD, INCLUDING ALL OF THE FUND'S 10 LARGEST
INVESTMENTS?
S.F. Japan became very appealing because I believed stocks there were very
cheap, the market was turning up and there was a broad economic recovery in
the country after a five-year period of stagnant growth and poor stock
market performance. In addition to a dramatic decrease in the value of the
yen from May until October, that recovery was spurred by actions on the
part of the Bank of Japan and the Ministry of Finance that helped stimulate
economic growth. Specifically, interest rates were kept very low and the
banking sector started to deal with the crisis it has faced for a few
years. Further, the newly found focus of Japanese companies on improving
shareholder value helped attract investor interest. A number of companies
announced their intention to buy back shares, increase their dividends and
otherwise provide ways for shareholders to benefit from their investments.
Q. DID THE FUND BENEFIT FROM THE RECENT RECOVERY?
S.F. Yes it did. The fund's Japanese investments - such as Fuji Photo Film,
Toyota and Honda - were chosen with an eye toward taking advantage of an
upturn in the Japanese economy, including most of the fund's top
investments. The fund was focused on manufacturing and basic industry
stocks, shying away from what are perceived to be defensive stocks, or
those that might be negatively affected by increases in interest rates. The
fear there was that improved economic growth might spark inflation, leading
the Bank of Japan to increase interest rates. Moreover, the fund's Japanese
investments were concentrated on stocks of companies that generally benefit
from a weaker yen, such as exporters of electronics. I'd like to point out
that the yen's relative value is an important variable for the fund's
performance. While a depreciating yen will hurt the dollar value of the
fund's holdings, it will help the overall Japanese economy and the
underlying value of the export-oriented stocks in the fund. With a weaker
yen, dollar sales for exporters translate into more yen and higher profits.
Q. LET'S TAKE A LOOK AT THOSE INVESTMENTS OUTSIDE OF JAPAN . . .
S.F. Investor sentiment toward Asian markets improved over the past year
because of lower interest rates, sustained profitability and more
attractive valuations. In general, Asian economies have experienced a
slowdown in economic growth, but corporate profits generally have been in
line with expectations. Excluding the fund's short-term U.S. investments,
Hong Kong is the fund's largest weighting outside of Japan. Its economy
remains weak, but its stock market has strengthened in anticipation of an
economic recovery and lower interest rates. The fund's Hong Kong
investments were focused on the real estate sector, which I found was
attractive both in terms of earnings and valuations. These investments
included Sun Hung Kai Properties, Swire Pacific and Cheung Kong. The fund's
investments in Hong Kong are an indirect way to capitalize on growth in
China. Finally, more attractive stock picking opportunities have emerged in
Malaysia, as profit results were above expectations. The fund's stake in
that country emphasized companies with strong cash flow in the gaming,
consumption and media sectors.
Q. TURNING TO YOU, SHIGEKI, WHAT'S YOUR OUTLOOK?
S.M. Since the fund has a strong Japanese focus at this point, let's look
at that market first. With the Japanese market posting strong gains
recently, stock valuations have reached fairly high levels. Because of
that, I'm not as focused on the short-term as I am on investments that I
feel will pay off over a longer term, say over two to three years. If there
is some sort of correction, there should be more buying opportunities for
the fund. The economic recovery is more broadly based than those we've seen
in the recent past, but that doesn't rule out any short-term corrections in
stock prices. Although the fund is still tilted toward value names within
Japan, I am increasing incrementally the number of names that are more
long-term growth stories. That's because the market is up so much and I'd
like to be able to purchase more should the market fall. In the other Asian
markets, valuations appear to be fairly reasonable, as does the general
quality of company earnings. Even though the Chinese economy appears to be
weak, trade and investment within the region remain strong. While the fund
had an emphasis on Japanese stocks at the end of the period, I'll continue
to search Southeast Asia for stocks with the greatest growth and earnings
potential.

FUND FACTS
GOAL: long-term growth of capital by
investing mainly in equity securities of
Pacific Basin issuers
START DATE: October 1, 1986
TRADING SYSMBOL: FPBFX
SIZE: as of April 30, 1996 more than
$708 million
MANAGER: Shigeki Makino, since May 1996;
manager, Fidelity Japan Fund, since 1994;
analyst, Fidelity Japan Fund, 1993-1994;
joined Fidelity in 1990
(checkmark)
SHIGEKI MAKINO ON HIS INVESTMENT APPROACH:
"I use two methods when choosing stocks: I look at a
stock's valuation and the relative attractiveness of
the company's business. Invariably, they are tied
together. Sometimes I will start by comparing
companies by looking at the attractiveness of their
businesses, and then seek those selling at cheap
valuations. At other times, I will start by looking for
cheap stocks, and then try to find the companies
with the most attractive business. In Japan currently,
it's harder to find companies with outstanding
businesses. Therefore, the fund is more weighted
toward value in Japan. Asia offers the flip side. There
are less value ideas but many more businesses that
appear attractive.
"I define companies with attractive businesses as
those that can achieve a high return on equity and
assets on a consistent basis. Typically, this
means a company with some sort of barrier to
entry, strong pricing power, high profit margins,
shareholder-oriented management or strong free
cash flow. I start by looking for these kinds of
companies and then weight my investment
decisions based on the stocks' relative valuations.
On the value side, I start by looking for
companies that are cheap, first by looking at a
stock's price relative to its assets; second, by
looking at the price-to-earnings or price-to-cash flow
ratio; and third, comparing a stock's price to its
historical stock price range.
"While I use these methods to judge the
attractiveness of a company's business and a
stock's relative value, the most important aspect of
my stock picking is that I visit the companies as
often as possible and use the vast array of
analysts at Fidelity's disposal. In that way, I can exert
the most control over the investing process."
(solid bullet) The change in sovereignty that will occur in
Hong Kong in 1997 - when the territory moves from
British to Chinese control - has created some
uncertainty in that market. However, Mr. Makino
believes that this move generally has been
factored into the market already, and the economy's
behavior after the change takes place will drive the
market. Even though Hong Kong will not be part of
China in the political sense until next year, it has
been developing as the financial capital of China for
the past several years.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGERS
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGERS' VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
PACIFIC BASIN
INVESTMENT CHANGES

GEOGRAPHIC DIVERSIFICATION
AS OF APRIL 30, 1996

United States 4.3%
Australia 5.3%
Other 5.6%
Row: 1, Col: 1, Value: 4.2
Row: 1, Col: 2, Value: 5.6
Row: 1, Col: 3, Value: 3.2
Row: 1, Col: 4, Value: 75.2
Row: 1, Col: 5, Value: 6.5
Row: 1, Col: 6, Value: 5.3
Hong Kong 6.5%
Malaysia 3.2%
Japan 75.1%
AS OF OCTOBER 31, 1995

United States 3.3%
Australia 10.0%
Thailand 8.5%
Row: 1, Col: 1, Value: 3.3
Row: 1, Col: 2, Value: 8.6
Row: 1, Col: 3, Value: 4.6
Row: 1, Col: 4, Value: 7.3
Row: 1, Col: 5, Value: 9.0
Row: 1, Col: 6, Value: 5.2
Row: 1, Col: 7, Value: 40.1
Row: 1, Col: 8, Value: 6.2
Row: 1, Col: 9, Value: 5.7
Row: 1, Col: 10, Value: 10.0
Hong Kong 5.7%
Singapore 4.7%
Other 7.3%
Indonesia 6.2%
Malaysia 9.0%
Korea (South) 5.2%
Japan 40.1%
ASSET ALLOCATION
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Stocks, equity futures and
closed-end investment companies 94.8 95.2

Bonds 0.9 1.5

Short-term investments 4.3 3.3

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

Fuji Photo Film Co. Ltd. 2.1 0.8
(Japan, Photographic Equipment)

Toyota Motor Corp. 1.9 0.0
(Japan, Autos, Tires, & Accessories)

Sakura Bank Ltd. 1.9 0.0
(Japan, Banks)

Mitsui Trust and Banking Co. Ltd. 1.9 0.0
(Japan, Banks)

Kobe Steel Ltd. Ord. 1.8 0.6
(Japan, Iron & Steel)

Matsushita Electric Industrial Co. Ltd. 1.6 0.3
(Japan, Consumer Electronics)

Honda Motor Co. Ltd. 1.6 0.7
(Japan, Autos, Tires, & Accesories)

Nomura Securities Co. Ltd. 1.6 0.6
(Japan, Securities Industry)

Yamanouchi Pharmaceutical Co. Ltd. 1.5 0.3
(Japan, Drugs & Pharmaceuticals)

Hitachi Ltd. 1.5 0.0
(Japan, Electronics)

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

Finance 17.6 14.8

Durables 12.0 8.5

Construction & Real Estate 11.5 11.8

Basic Industries 9.1 8.2

Technology 9.0 11.0

Industrial Machinery & Equipment 8.1 6.6

Retail & Wholesale 4.6 5.3

Health 4.2 1.4

Media & Leisure 3.3 5.5

Utilities 3.2 1.9

PACIFIC BASIN
INVESTMENTS APRIL 30, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 90.1%
SHARES VALUE (NOTE 1)
AUSTRALIA - 5.3%
Australian Gas Light Co. 354,000 $ 1,477,038
Australia & New Zealand Banking
Group Ltd. 531,000 2,541,621
Brambles Industries Ltd. 217,647 2,989,928
Broken Hill Proprietary Co. Ltd. (The) 168,639 2,600,789
Crown Ltd. (a) 359,170 737,995
Erg Ltd. 63 75
Harvey Norman Holdings Ltd. 503,197 3,010,678
Leighton Holdings Ltd. 383,000 1,236,219
Memtec Ltd. Ord. 333 8,781
National Australia Bank Ltd. 390,000 3,506,254
News Corp. Ltd. 307,132 1,803,751
Publishing & Broadcasting Ltd. 619,000 2,850,750
QBE Insurance Group Ltd. Ord. 562,238 2,956,714
QNI Ltd. 354,000 877,862
Tabcorp Holdings Ltd. 516,000 2,140,785
Western Mining Holdings Ltd. 445,680 3,255,995
Westpac Banking Corp. 531,000 2,583,424
Woodside Petroleum Ltd. 545,426 3,160,286
37,738,945
GRAND CAYMAN (U.K. OVERSEAS TERRITORY) - 0.0%
Sanzo Finance Ltd. (warrants) (a) 250 25,000
HONG KONG - 6.5%
Cathay Pacific Airways Ltd. 402,000 701,553
Cheung Kong Holdings Ltd. 692,000 4,942,410
China Light & Power Co. Ltd. 172,500 813,921
Dah Sing Financial Holdings Ltd. 278,200 773,207
First Pacific Bancshares Holding Ltd. 246,000 85,067
First Pacific Co. Ltd. 489,579 651,869
Giordano Holdings Ltd. Ord. 468,000 432,566
Great Eagle Holdings Ltd. 290,172 832,739
HSBC Holdings PLC 79,400 1,177,049
Hang Seng Bank Ltd. 582,600 5,912,083
Hong Kong & China Gas Co. Ltd. 1,609,800 2,642,871
Hong Kong & China Gas Co.
Ltd. (warrants) (a) 101,900 -
Hong Kong Telecommunications Ltd. 881,200 1,674,280
Hutchison Whampoa Ltd. Ord. 562,000 3,487,209
Hysan Development Co. Ltd. 341,000 1,095,421
Hysan Development Co. Ltd.
(warrants) (a) 17,050 -
International Bank of Asia Ltd. 86,000 54,197
JCG Holdings Ltd. 912,000 842,949
Jardine Matheson Holdings Ltd. Ord. 56,000 448,000
Johnson Electric Holdings Ltd. 145,000 328,025
Li & Fung Ltd. 414,000 374,627
Mandarin Oriental International Ltd. 195,000 276,900
Manhattan Card Co. 970,000 576,806
National Mutual Asia Ltd. 412,000 348,850
New World Development Co. 458,000 2,054,449
Hong Kong & Shanghai Hotels 276,000 476,311
Sun Hung Kai Properties Ltd. 711,000 6,778,475
Swire Pacific Ltd. Class A 648,000 5,528,653
Varitronix International Ltd. 148,000 271,675
Wharf Holdings Ltd. (c) 474,000 1,755,510
Wing Hang Bank Ltd. 152,000 556,071
45,893,743
INDIA - 0.0%
Tube Investments of India Ltd. (GDR) Unit 36,666 118,021
INDONESIA - 0.1%
Sampoerna Hanjaya Mandala (For. Reg.) 74,000 818,338

SHARES VALUE (NOTE 1)
JAPAN - 70.4%
Acom Co. Ltd. 90,400 $ 3,395,749
Aderans Co. Ltd. 240,000 5,705,863
Aida Engineering Ltd. Ord. 180,000 1,711,759
Aiwa Co. Ltd. 80,000 1,841,092
Akita Bank Ltd. 340,000 2,521,991
Aiphone Co. Ltd. 30,000 647,615
Aoki International Co. Ltd. 100,000 2,424,945
Amada Metrecs Co. Ltd. 110,000 1,809,709
Amadasonoike Co. Ltd. 150,000 1,119,776
Amway Japan Ltd. 80,000 4,100,613
Aoyama Trading Co. Ord. 80,000 2,502,972
Aronkasei Co. Ltd. 19,000 265,608
Asahi Breweries Ltd. 450,000 5,434,834
Bank of Tokyo-Mitsubishi Ltd. 315,000 7,249,298
Bridgestone Corp. 440,000 8,117,541
Bunka Shutter Co. Ltd. 300,000 2,282,345
Bunka Shutter Co. Ltd. (warrants) (a) 200 107,500
Calsonic Corp. 220,000 1,872,474
Canon, Inc. 388,000 7,674,766
Cesar Co. 150,000 1,483,524
Charle Co. Ltd. 26,000 383,244
Chofu Seisaku Co. Ltd. 76,000 1,973,087
Citizen Watch Co. Ltd. Ord. 260,000 2,262,375
Cosmo Oil Company Ltd. 250,000 1,628,548
DDI Corp. Ord. 960 8,207,313
Daiichi Pharmaceutical Co. Ltd. 160,000 2,677,952
Daiwa House Industry Co. Ltd. 400,000 6,352,527
Daiwa Securities Co. Ltd. 480,000 7,349,151
Dai-Dan Co. Ltd. 200,000 3,347,439
Denki Kagaku Kogyo Kk 929,000 3,578,004
Daito Trust Construction 342,100 5,042,604
FCC Co. Ltd. 61,600 2,284,627
Fuji Bank Ltd. 280,000 6,097,665
Fuji Photo Film Co. Ltd. 478,000 14,818,886
Funai Consulting Co. Ltd. 10,000 156,911
Godo Steel Ltd. 260,000 1,861,823
Higashi Nihon House Co. Ltd. 90,000 1,454,995
Hirose Electric Co. Ltd. 40,000 2,457,325
Hitachi Ltd. 1,000,000 10,746,041
Hitachi Koki Co. Ltd. Ord. 150,000 1,583,377
Hitachi Maxell Ltd. 314,000 6,748,514
Hitachi Medical Corp. Ord. 120,000 2,019,875
Honda Motor Co. Ltd. 498,000 11,318,720
Hoya Corp. 115,000 4,046,408
Inui Tatemono Co. Ltd. 27,000 318,387
Ito-Yokado Co. Ltd. 150,000 8,801,293
Izumiya Co. Ltd. 300,000 5,705,863
Japan Industrial Land Development
Co. Ltd. 35,200 1,241,900
Japan Radio Co. Ltd. 220,000 3,389,282
JGC Corp. 120,000 1,529,171
Kahma Co., Ltd. 12,000 216,823
Kawasaki Kisen Kaisha Ltd. (a) 550,000 2,018,924
Keiyo Co. Ltd. 30,000 416,528
Kobe Steel Ltd. Ord. (a) 4,141,000 12,798,488
Komatsu Ltd. Ord. 1,049,000 10,075,507
Komatsu Seiren Co. Ltd. 160,000 1,825,876
Konica Corp. 402,000 3,134,801
Kyushu Matsushita Electric Co. Ltd. 50,000 1,046,075
Maezawa Industries 95,000 2,574,771
Makita Corp. 200,000 3,214,303
Maruko Co. Ltd. 25,000 2,225,286
Matsushita Electric Industrial Co. Ltd. 650,000 11,435,500
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
JAPAN - CONTINUED
Matshushita-Kotobuki Electronics
Industries Ltd. 30,000 $ 798,821
Minolta Camera, Co. Ltd. 400,000 2,434,501
Mirai Industry Co. Ltd. 114,200 2,899,662
Mitsubishi Electric Co. Ord. 900,000 7,052,446
Mitsui Marine & Fire Insurance Co. 340,000 2,867,957
Mitsui Trust and Banking Co. Ltd. 1,101,000 13,192,525
Mitsui Engineer & Shipbuilding
Co. Ltd. (a) 250,000 791,688
Mitsui Wood Systems, Inc. 140,000 1,557,700
Mitsukoshi Ltd. 175,000 1,930,484
Murata Manufacturing Co. Ltd. 90,000 3,474,870
NKK Corp. (a) 100,000 311,920
Nakayama Steel Works Ltd. 22,000 174,485
National House Industrial Co. Ltd. 90,000 1,583,377
Nichiei Construction Co. Ltd. 300,000 3,794,399
Nippon Oil Co. Ltd. 700,000 4,826,209
Nippon Shokubai Co. Ltd. 794,000 8,607,864
Nippon Suisan Kaisha Ltd. (a) 300,000 1,332,319
Nissan Motor Co. Ltd. Ord. 210,000 1,765,394
Nippon Meat Packers, Inc. 250,000 3,946,555
Nomura Securities Co. Ltd. 520,000 11,274,785
Nichicon Corp. 210,000 3,474,870
Nippon Zeon Co. Ltd. 600,000 3,811,516
Okuma Corp. (a) 380,000 4,155,770
Omron Corp. 470,000 10,548,238
Orix Corp. 155,200 6,390,718
Nichiei Co. Ltd. 40,000 2,662,736
Promise Co. Ltd. 48,900 2,069,374
Riken Vinyl Industry Co. Ltd. 200,000 2,073,130
Rinnai Corp. Ord. 112,100 2,793,039
Riso Kagaku Corp. 12,000 1,013,361
Rohm Co. Ltd. 50,000 3,166,754
Sakai Chemical Industry Co. Ltd. 300,000 2,196,757
Sakura Bank Ltd. 1,140,000 13,334,601
Sanki Engineering Co. Ltd. 270,000 3,774,428
Sanwa Shutter Corp. 200,000 1,879,131
Sekisui Chemical Co. Ltd. 700,000 8,787,028
Shimachu Co. Ltd. 110,000 3,713,566
Shimano, Inc. 165,000 3,342,209
Shintokogio Ltd. 189,000 1,707,479
Shin-Etsu Chemical Co. Ltd. 150,000 3,266,606
Sho Bond Corp. Ord. 110,000 3,975,084
Skylark Co. Ltd. 43,000 936,427
Sony Corp. 100,500 6,498,978
Sumitomo Corp. 350,000 4,160,525
Sumitomo Forestry Co. Ltd. 195,000 2,985,593
Sumitomo Metal Industries Ltd. 1,650,000 5,272,217
Sumitomo Trust & Banking Co. Ltd. 380,000 5,528,981
Sumitomo Warehouse Co. Ltd. 300,000 2,205,316
Takeda Chemical Industries Ltd. 390,000 6,712,947
Takuma Co. Ltd. 117,000 1,791,356
Takasago Thermal Engineering Co. 214,000 3,887,024
Tasaki Shinju Co. Ltd. Ord. 50,000 565,831
Tenma Corp. 100,000 2,453,521
Terumo Corp. 300,000 3,794,399
Tsudakoma Corp. 220,000 1,715,563
Toda Construction Co. 250,000 2,710,285
Tokyo Style Co. Ltd. 100,000 1,768,817
Tohoku Telecommunications Construction
Co. Ltd. 20,000 119,062
Toyo Ink Manufacturing Co. Ltd. 300,000 1,854,405
Toyota Motor Corp. 597,000 13,568,827

SHARES VALUE (NOTE 1)
Tokyo Securities Co. Ltd. 150,000 $ 867,291
Toyo Shutter Co. Ltd. 150,000 1,583,377
Uni Charm Corp. Ord. 110,000 3,096,381
Uny Co. Ltd. 201,000 3,880,272
Wako Electric Co. Ltd. 71,000 1,384,147
Yamanouchi Pharmaceutical Co. Ltd. 460,000 10,848,747
Yamatake Honeywell Co. Ltd. 100,000 1,882,935
Yokogawa Electric 60,000 696,115
Yoshinoya D&C Co. Ltd. Ord. 125 1,771,195
499,931,053
KOREA (SOUTH) - 0.0%
Sam Yang Co. Ltd. (warrants) (a) 300 15,000
MALAYSIA - 3.2%
Affin Holdings BHD 250,000 616,603
Berjaya Sports Toto BHD 449,000 1,440,545
Commerce Asset Holding BHD 2,000 13,635
EON (Edaran Otomobil Nasional) BHD 186,000 1,588,851
Genting BHD 114,000 1,024,103
Kian Joo Can Factory BHD 189,000 1,091,478
Magnum Corp. BHD 404,500 700,798
Malaysian Airlines Systems BHD 181,000 598,857
Malaysian Assurance Alliance BHD 124,000 740,967
Malayan Banking BHD 155,000 1,510,527
New Straits Times Press BHD 53,000 284,821
Nylex Malaysia SDN BHD 185,000 756,768
Resorts World BHD 218,000 1,320,152
Rothmans of Pall Mall Malaysia BHD 163,000 1,666,934
Public Bank BHD (For. Reg.) 692,000 1,984,279
Star Publications BHD 255,000 751,654
Tanjong PLC (Mlay Reg.) 93,000 354,321
Time Engineering BHD 163,000 477,201
Telekom Malaysia BHD 468,000 4,410,668
United Engineers BHD 85,000 582,916
YTL Corp. BHD 233,000 1,168,037
23,084,115
NEW ZEALAND - 0.2%
Telecom Corp. 402,000 1,705,389
PAKISTAN - 0.2%
Adamjee Insurance Ltd. 14,200 52,766
Bank of Punjab (a) 42,900 29,041
National Development Leasing Corp. 609,871 265,241
Pakistan State Oil Co. Ltd. 91,736 771,377
Pakistan Suzuki Motors Ltd. 26,000 28,817
Pakistan International Airlines (a) 272,248 67,836
1,215,078
PHILIPPINES - 0.7%
Ayala Land, Inc. Class B 1,280,375 1,982,990
Filinvest Land, Inc. ORD (a) 1,875,000 967,973
Oriental Petroleum & Mineral Corp.
Class B (a) 7,771,657 4,755
Pilipino Telephone Corp. (a) 1,136,000 1,672,505
4,628,223
SINGAPORE - 2.4%
Cerebos Pacific Ltd. 9,000 81,294
City Developments Ltd. 196,000 1,714,651
Datacraft Asia Ltd. 220,000 246,400
DBS Land Ltd. 338,000 1,370,270
Development Bank of Singapore Ltd.
(For. Reg.) 146,000 1,848,364
Hong Leong Finance Ltd. (For. Reg.) 295,000 1,206,437
Keppel Corp. Ltd. 150,000 1,354,908
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
SINGAPORE - CONTINUED
Overseas Union Bank Ltd. (For. Reg.) 195,000 $ 1,511,735
Singapore Finance Ltd. 76,000 152,432
Singapore International Airlines Ltd. 150,000 1,514,936
Singapore Land Ltd. 55,000 391,181
Singapore Press Holdings Ltd. (For. Reg.) 144,000 2,724,324
Singapore Telecommunications Ltd. 495,000 1,218,137
United Overseas Bank Ltd. (For. Reg.) 230,000 2,241,110
17,576,179
SRI LANKA - 0.1%
Ceylon Tea Services Ltd. 215,000 333,881
John Keells Holdings Ltd. GDR (c) 10,000 62,500
Kelani Tyres Ltd. (Loc. Reg.) (a) 46,600 9,365
405,746
THAILAND - 0.9%
Finance One PCL (For. Reg.) 245,000 1,716,848
Krung Thai Bank Ltd. (For. Reg.) 200,110 982,388
Precious Shipping Ltd. (For. Reg.) 48,500 264,980
PTT Exploration & Production (For. Reg.) 155,000 2,160,065
Thai Military Bank Ltd. (For. Reg.) 177,300 856,369
Thai Storage Battery PCL (For. Reg.) 44,200 102,369
6,083,019
UNITED KINGDOM - 0.1%
Rowe Evans Investments PLC 438,369 825,943
TOTAL COMMON STOCKS
(Cost $585,156,395) 640,063,792
CORPORATE BONDS - 0.9%
MOODY'S PRINCIPAL VALUE
RATINGS AMOUNT (C) (NOTE 1)
CONVERTIBLE BONDS - 0.8%
BERMUDA - 0.8%
MBL International Finance
Bermuda 3%, 11/30/02 Aa3 $ 4,860,000 5,613,300
INDONESIA - 0.0%
Modernland Realty Ltd.
6%, 10/20/03 - IDR 247,000 167,071
TOTAL CONVERTIBLE BONDS 5,780,371
NONCONVERTIBLE BONDS - 0.1%
THAILAND - 0.1%
Finance One PCL unsecured
3 3/4%, 3/15/01 (For. Reg.) - THB 818 23,458
Thai German Ceramic Industries
PCL 3%, 7/8/99 - THB 666 206,089
TOTAL NONCONVERTIBLE BONDS 229,547
TOTAL CORPORATE BONDS
(Cost $6,105,848) 6,009,918
GOVERNMENT OBLIGATIONS - 0.3%
UNITED STATES OF AMERICA - 0.3%
U.S. Treasury Bill, yield at date of purchase
4.74%, 7/18/96 (d)
(Cost $2,325,195) 2,350,000 2,325,509
REPURCHASE AGREEMENTS - 8.7%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.33%, dated
4/30/96 due 5/1/96 $ 61,954,171 $ 61,945,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $655,532,438) $ 710,344,219
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
PURCHASED
304 Nikkei 225 Stock
Index Contracts June 1996 $33,660,400 $ 2,874,854
THE FACE VALUE OF FUTURES PURCHASED AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 4.7%
CURRENCY ABBREVIATIONS
IDR - Indonesian rupiah
THB - Thai baht
LEGEND
(a) Non-income producing
(b) Principal amount is stated in United States dollars unless otherwise
noted.
(c) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $1,818,010 or 0.3% of net
assets.
(d) A portion of the security was pledged to cover margin requirements for
futures contracts. At the period end, the value of securities pledged
amounted to $1,472,500.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $608,210,901 and $311,967,424, respectively.
The market value of futures contracts opened and closed amounted to
$88,759,299 and $58,486,893, respectively.
INCOME TAX INFORMATION
At April 30, 1996, the aggregate cost of investment securities for income
tax purposes was $655,621,488. Net unrealized appreciation aggregated
$54,722,731, of which $62,232,244 related to appreciated investment
securities and $7,509,513 related to depreciated investment securities.
At October 31, 1995, the fund had a capital loss carryforward of
approximately $10,407,000 all of which will expire on October 31, 2003.
MARKET SECTOR DIVERSIFICATION
As a Percentage of Total Value of Investment in Securities
Aerospace & Defense 0.3%
Basic Industries 9.1
Construction & Real Estate 11.5
Durables 12.0
Energy 1.8
Finance 17.6
Health 4.2
Holding Companies 0.2
Industrial Machinery & Equipment 8.1
Media & Leisure 3.3
Nondurables 2.6
Precious Metals 0.5
Repurchase Agreements 8.7
Retail & Wholesale 4.6
Services 1.3
Technology 9.0
Transportation 2.0
Utilities 3.2
100.0%
PACIFIC BASIN
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996 (UNAUDITED)

ASSETS

Investment in $ 710,344,219
securities, at
value
(including
repurchase
agreements
of
$61,945,000)
(cost
$655,532,438
) - See
accompanyin
g schedule

Cash 623

Receivable for 4,719,105
investments
sold

Receivable for 3,293,314
fund shares
sold

Dividends 1,778,891
receivable

Interest 61,306
receivable

Redemption 130
fees
receivable

Receivable for 212,800
daily
variation on
futures
contracts

TOTAL ASSETS 720,410,388

LIABILITIES

Payable for $ 10,342,712
investments
purchased

Payable for 1,008,913
fund shares
redeemed

Accrued 455,357
management
fee

Other payables 370,431
and
accrued
expenses

TOTAL 12,177,413
LIABILITIES

NET ASSETS $ 708,232,975

Net Assets
consist of:

Paid in capital $ 677,138,783

Accumulated (985,127
net )
investment
(loss)

Accumulated (25,620,750
undistributed )
net realized
gain (loss) on
investments
and foreign
currency
transactions

Net unrealized 57,700,069
appreciation
(depreciation
) on
investments
and assets
and liabilities
in
foreign
currencies

NET ASSETS, for $ 708,232,975
43,388,396
shares
outstanding

NET ASSET $16.32
VALUE and
redemption
price per
share
($708,232,97
5 (divided by)
43,388,396
shares)

Maximum $16.82
offering price
per share
(100/97.00 of
$16.32)

STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)

INVESTMENT $ 3,025,518
INCOME
Dividends

Interest 2,386,742

5,412,260

Less foreign (361,830
taxes )
withheld

TOTAL 5,050,430
INCOME

EXPENSES

Management $ 2,095,579
fee
Basic fee

Performance (192,742
adjustment )

Transfer agent 932,644
fees

Accounting 182,392
fees and
expenses

Non-interested 844
trustees'
compensatio
n

Custodian fees 276,356
and
expenses

Registration 36,292
fees

Audit 21,597

Legal 1,821

Miscellaneous 3,412

Total 3,358,195
expenses
before
reductions

Expense (74,706 3,283,489
reductions )

NET 1,766,941
INVESTMENT
INCOME

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

Investment (15,149,567
securities )

Foreign (87,056
currency )
transactions

Futures 513,140 (14,723,483
contracts )

Change in net
unrealized
appreciation
(depreciation
) on:

Investment 65,613,265
securities

Assets and 23,474
liabilities in
foreign
currencies

Futures 2,874,854 68,511,593
contracts

NET GAIN (LOSS) 53,788,110

NET INCREASE $ 55,555,051
(DECREASE)
IN NET ASSETS
RESULTING
FROM
OPERATIONS

OTHER $ 1,778,673
INFORMATION
Sales
charges paid
to FDC

Deferred $ 13,790
sales
charges
withheld
by FDC

Expense $ 66,944
reductions
Directed
brokerage
arrangements

Custodian 217
interest
credits

Transfer 7,545
agent
interest
credits

$ 74,706

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS SIX MONTHS YEAR ENDED
ENDED OCTOBER 31,
APRIL 30, 1996 1995
(UNAUDITED)

Operations $ 1,766,941 $ 1,790,520
Net
investment
income

Net realized (14,723,483) (10,059,188)
gain (loss)

Change in 68,511,593 (70,801,516)
net
unrealized
appreciation
(depreciation
)

NET INCREASE 55,555,051 (79,070,184)
(DECREASE)
IN NET
ASSETS
RESULTING
FROM
OPERATIONS

Distributions to - (583,259)
shareholders
In excess of
net
investment
income

From net - (52,235,883)
realized gain

TOTAL - (52,819,142)
DISTRIBUTION
S

Share 437,549,223 535,543,498
transactions
Net proceeds
from sales of
shares

Reinvestmen - 51,819,678
t of
distributions

Cost of (102,742,924) (691,649,929)
shares
redeemed

Redemption 236,710 278,855
fees

NET INCREASE 335,043,009 (104,007,898)
(DECREASE)
IN NET
ASSETS
RESULTING
FROM SHARE
TRANSACTIO
NS

TOTAL 390,598,060 (235,897,224)
INCREASE
(DECREASE)
IN NET ASSETS

NET ASSETS

Beginning of 317,634,915 553,532,139
period

End of period $ 708,232,975 $ 317,634,915
(including
accumulate
d net
investment
loss and
distribution
s in excess
of net
investment
income
of
$985,127
and
$67,351,
respectivel
y)

OTHER
INFORMATION
Shares

Sold 28,788,779 34,934,955

Issued in - 3,265,306
reinvestment
of
distributions

Redeemed (6,750,092) (44,583,739)

Net increase 22,038,687 (6,383,478)
(decrease)

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

</TABLE>

FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED OCTOBER 31,
ENDED
APRIL 30, 1996

SELECTED PER-SHARE DATA (UNAUDITED) 1995 1994 H 1993 1992 1991 F

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Net asset $ 14.88 $ 19.96 $ 17.48 $ 12.00 $ 13.15 $ 12.89
value,
beginning of
period

Income from .05 E .07 E .10 .20 .08 E .02 E
Investment
Operations
Net
investment
income

Net realized 1.38 (3.12) 2.78 5.39 (1.23) .40
and
unrealized
gain (loss)

Total from 1.43 (3.05) 2.88 5.59 (1.15) .42
investment
operations

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

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

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

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

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

Net asset $ 16.32 $ 14.88 $ 19.96 $ 17.48 $ 12.00 $ 13.15
value, end of
period

TOTAL RETURN B, 9.68% (15.87)% 16.88% 47.06% (8.75)% 3.37%
C

RATIOS AND
SUPPLEMENT
AL DATA

Net assets, $ 708,233 $ 317,635 $ 553,532 $ 493,533 $ 116,277 $ 95,051
end of period
(000 omitted)

Ratio of 1.23% A 1.32% 1.54% 1.59% 1.84% 1.88%
expenses to G
average net
assets

Ratio of 1.21% A, 1.32% 1.54% 1.59% 1.84% 1.88%
expenses to D
average net
assets after
expense
reductions

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

Portfolio 133% A 65% 88% 77% 105% 143%
turnover rate

Average $ .0137
commission
rate I

</TABLE>

<TABLE>
<CAPTION>
<S><C>
A ANNUALIZED B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED DURING THE PERIODS
SHOWN (SEE NOTE 7 OF NOTES TO FINANCIAL STATEMENTS). C TOTAL RETURNS
DO NOT INCLUDE THE ONE TIME SALES CHARGE AND
FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. D FMR OR THE
FUND HAS ENTERED INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S
EXPENSES (SEE NOTE 7 OF NOTES TO FINANCIAL
STATEMENTS). E NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES OUTSTANDING
DURING THE PERIOD. F AS OF NOVEMBER 1, 1991 THE FUND DISCONTINUED THE
USE OF EQUALIZATION ACCOUNTING. G FMR
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 H EFFECTIVE NOVEMBER 1, 1993,
THE FUND ADOPTED STATEMENT OF POSITION
93-2, "DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION
OF INCOME, CAPITAL GAIN, AND RETURN OF
CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES." AS A RESULT, NET
INVESTMENT INCOME PER SHARE MAY REFLECT CERTAIN
RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES. I FOR FISCAL
YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A
FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE
FOR SECURITY TRADES ON WHICH COMMISSIONS ARE
CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND
DEPENDING ON THE MIX OF TRADES EXECUTED
IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE
STRUCTURES MAY DIFFER.

</TABLE>

SOUTHEAST ASIA
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (income) and capital gains (the profits the
fund earns when it sells securities that have grown in value). The fund has
a 3% sales charge. If Fidelity had not reimbursed certain fund expenses,
the life of fund total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED PAST 6 PAST 1 LIFE OF
APRIL 30, 1996 MONTHS YEAR FUND

SOUTHEAST ASIA 15.50% 26.93% 61.07%

SOUTHEAST ASIA 12.03% 23.12% 56.23%
(INCL. 3% SALES CHARGE)

Morgan Stanley Capital 17.10% 25.42% 78.01%
International Far East
Ex-Japan Free Index

Pacific Region Ex-Japan 11.34% 18.08% n/a
Funds Average

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, or since the fund
started on April 19, 1993. For example, if you invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment would
be $1,050. You can compare the fund's returns to the performance of the
Morgan Stanley Capital International Far East Ex-Japan Free Index, a broad
measure of the performance of stocks in the Far East region, excluding
Japan. The index is weighted by each country's market capitalization (or
the total value of its outstanding shares). To measure how the fund's
performance stacked up against its peers, you can compare it to the Pacific
region Ex-Japan Japan funds average, which reflects the performance of 51
funds with similar objectives tracked by Lipper Analytical Services over
the past six months. These benchmarks include reinvested dividends and
capital gains, if any, and exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED PAST 1 LIFE OF
APRIL 30, 1996 YEAR FUND

SOUTHEAST ASIA 26.93% 17.00%

SOUTHEAST ASIA 23.12% 15.83%
(INCL. 3% SALES CHARGE)

Morgan Stanley Capital 25.42% 20.92%
International Far East
Ex-Japan Free Index

Pacific Region Ex-Japan Funds Average 18.08% n/a

Let's say you invested $10,000 in Fidelity Southeast Asia Fund on April 19,
1993, when the fund started. By April 30, 1996, the value of your
investment would have grown to $15,623 - a 56.23% increase on your initial
investment. That compares to $10,000 invested in the Morgan Stanley Capital
International Far East Ex-Japan Free Index, which would have grown to
$17,801 over the same period - a 78.01% increase.

An interview with Allan Liu, Portfolio Manager of
Fidelity Southeast Asia Fund
Q. HOW DID THE FUND PERFORM, ALLAN?
A. Fairly well. For the six- and 12-month periods ended April 30, 1996, the
fund had total returns of 15.50% and 26.93%, respectively. Those returns
outpaced the Pacific region Ex-Japan funds average, which gained 11.34% and
18.08%, respectively, for the same periods, as tracked by Lipper Analytical
Services. The Morgan Stanley Capital International Far East Ex-Japan Free
Index returned 17.10% for the six-month period and 25.42% for the one-year
period.
Q. WHAT FACTORS DROVE THE PACIFIC REGION MARKETS OVER THE PAST SIX MONTHS?
A. Most of the region's economies were quite strong and, as a result, many
Southeast Asian companies enjoyed improving fundamentals during the period.
Even though interest rates moved up and down during the past two or three
years, economic growth remained very strong and steady. And generally
speaking, company earnings growth was respectable.
Q. HOW DID INDIVIDUAL MARKETS IN THE REGION PERFORM DURING THE PAST SIX
MONTHS?
A. The individual markets turned in mixed performances. In local currency
terms, the top performing markets were the two smaller ones - Indonesia, up
about 28%, followed by Malaysia, up 24% for the six months ended April 30,
1996. Both markets were boosted by a healthy amount of cash flowing into
them. For the same six-month period, Hong Kong, which is the region's
largest market, was up roughly 12%, while the Philippines gained 19%, and
Singapore was up 14%. Political concerns and a slowdown in earnings growth
for industrial companies muted the returns of Thailand, which was up about
1.7%. South Korea, mired by domestic political issues and rising concerns
about a possible economic slowdown, was the only market that posted
negative returns, down about 1%. However, we saw a strong rebound in the
Korean market in April, when the government raised the foreign ownership
limit from 15% to 18%. Investors anticipated that the Korean market - after
having such lackluster performance over the previous three years - would
start to play catch up with other markets in the region.
Q. LET'S TALK ABOUT THE FUND'S PERFORMANCE. WHAT FACTORS HELPED IT
OUTPERFORM THE AVERAGE PACIFIC REGION FUND?
A. While I can't know with absolute certainty, I think it probably came
down to the performance of individual stocks, including those in the
banking and property sectors, as well as holdings in a variety of other
sectors. Let me start with banks. Krung Thai Bank and Bangkok Bank in
Thailand and Overseas Union Bank in Singapore were some of the top
performers over the past six months. Banks remained a good proxy for
playing the booming economy in the region. But another factor that boosted
the stock prices of these large banks was their aggressive cost-control
programs. As a result of these efforts, the banks enjoyed improved
efficiency and higher profits.
Q. LET'S MOVE TO THE PROPERTY COMPANIES. WHAT CAUSED THEM TO DO WELL?
A. Hong Kong property companies, including Sun Hung Kai Properties and
Cheung Kong Holdings - which were some of the fund's top performers and
among its largest holdings at the end of the period - enjoyed a strong
turnaround. In 1994, the Hong Kong economy slowed and the government
tightened credit. Those events caused a virtual collapse of the property
market, despite the fact that Hong Kong continued to enjoy a relatively
strong economy and corporate earnings remained healthy. Both Sun Hung Kai
and Cheung Kong aggressively exploited the property market's collapse by
acquiring land at relatively cheap prices. And when the property market
improved last year, these companies enjoyed the benefits. During the past
six months, the fund's stake in Hong Kong grew to more than 37% at the end
of the period, up from 28% six months earlier.
Q. DID YOU HAVE ANY HOLDINGS THAT COULD DIRECTLY BENEFIT FROM THE OPENING
OF CHINA?
A. Yes, and they did quite well in anticipation of that event. Citic
Pacific is a good example. It is a conglomerate with interests in
telecommunications in Hong Kong, as well as in aviation and motor vehicle
distribution. It is also investing in Chinese infrastructure projects such
as toll roads and bridges. The stock rose significantly during the period.
Goldlion, a menswear wholesaler, also did extremely well.
Q. THE FUND ALSO HAD SIGNIFICANT HOLDINGS IN THAILAND. BUT HAVEN'T CERTAIN
SECTORS OF THE THAI ECONOMY STARTED TO SLOW?
A. Yes, that's true, but the economy is still strong by global standards,
with economic growth expected to be about 8% this year. But it is true that
some sectors of the economy are showing signs of weakness. That's why I
preferred to take advantage of the economy's growth through such holdings
as Krung Thai Bank and Bangkok Bank, rather than attempt to determine which
sectors will emerge as winners or losers. The fund's investments in Thai
companies other than the banks proved to be disappointing, in part due to
that economic slowdown and political concerns. As a result, I reduced the
fund's holdings in Thailand to under 16% of investments at the end of the
period, from more than 23% six months earlier.
Q. WERE THERE ANY MALAYSIAN HOLDINGS THAT STOOD OUT?
A. I increased the fund's stake in Malaysian companies to almost 21% of
investments at the end of the period, from just below 17% six months
earlier, primarily by investing in companies that I believed could benefit
from the rise in consumer spending. One example was Berjaya Sports Toto, a
numbers forecasting, or lottery company, that posted large gains during the
period.
Q. WHAT WAS YOUR STRATEGY WITH KOREAN AND SINGAPORE HOLDINGS?
A. Given some of the political and economic uncertainty in Korea, I
concentrated on big blue chip stocks with good track records. That strategy
worked out reasonably well during the country's weak market environment.
Two of the fund's top holdings there - Korea Electric Power and Korea
Mobile Telecommunications - performed well. In Singapore, I focused on
property companies and banks where earnings growth was better than many
other sectors.
Q. WHAT WILL YOUR STRATEGY BE OVER THE NEXT SIX MONTHS?
A. To capitalize on the region's growing economies, I'll continue to
emphasize growth companies with earnings growth rates in the high teens.
I'll also be looking for companies with very healthy levels of cash flow.
That's important because strong cash flow allows companies the financial
flexibility to take advantage of future investment opportunities. Because
the cash flows into these markets and the fund can be volatile, I'll also
emphasize large capitalization companies, which are more liquid - or easily
traded.

FUND FACTS
GOAL: long-term growth of capital by investing
mainly in equity securities of Southeast Asian
issuers. The fund does not anticipate
investing in Japan
START DATE: April 19, 1993
TRADING SYMBOL: FSEAX
SIZE: as of April 30, 1996, more than
$984 million
MANAGER: Allan Liu, since 1993; manager,
various funds for non-U.S. investors; analyst,
Southeast Asian markets, 1987-1990; joined
Fidelity in 1987
(checkmark)
ALLAN LIU'S OUTLOOK FOR THE PACIFIC REGION MARKETS:
"From an economic standpoint, I believe the Pacific
Region's prospects remain favorable. Singapore,
Thailand, Indonesia and the Philippines remain
healthy. The Chinese economy - which can have an
effect on the economic fortunes of other countries in
the region, primarily Hong Kong - is improving and is
in much better shape than it was two or three years
ago. Having said that, though, the question is how fast
will China move back to a solid growth trend? Trade
disputes with the United States could curtail economic
growth in China - and ultimately in the region.
"During the past six months, the Pacific region's stock
markets have done relatively well. But I believe that
their prices are still reasonable based on their rate of
earnings growth and other valuation measures. And I
think that earnings growth will remain respectable in
the near term."
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
SOUTHEAST ASIA
INVESTMENT CHANGES

GEOGRAPHIC DIVERSIFICATION
AS OF APRIL 30, 1996
United States 3.6%
Row: 1, Col: 1, Value: 3.6
Row: 1, Col: 2, Value: 15.9
Row: 1, Col: 3, Value: 12.1
Row: 1, Col: 4, Value: 3.0
Row: 1, Col: 5, Value: 2.6
Row: 1, Col: 6, Value: 20.9
Row: 1, Col: 7, Value: 4.6
Row: 1, Col: 8, Value: 37.3
Thailand 15.9%
Hong Kong 37.3%
Singapore 12.1%
Philippines 3.0%
Indonesia 4.6%
Other 2.6%
Malaysia 20.9%
AS OF OCTOBER 31, 1995

United States 3.0%
Row: 1, Col: 1, Value: 3.0
Row: 1, Col: 2, Value: 23.5
Row: 1, Col: 3, Value: 8.9
Row: 1, Col: 4, Value: 3.4
Row: 1, Col: 5, Value: 1.3
Row: 1, Col: 6, Value: 16.8
Row: 1, Col: 7, Value: 8.0
Row: 1, Col: 8, Value: 7.1
Row: 1, Col: 9, Value: 28.0
Thailand 23.5%
Hong Kong 28.0%
Indonesia 7.1%
Singapore 8.9%
Philippines 3.4%
Other 1.3%
Korea (South) 8.0%
Malaysia 16.8%
ASSET ALLOCATION
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Stocks 96.4 97.0

Short-term investments 3.6 3.0

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

Sun Hung Kai Properties Ltd. 5.1 2.3
(Hong Kong, Real Estate)

Cheung Kong Holdings Ltd. 4.4 1.8
(Hong Kong, Real Estate)

Hang Seng Bank Ltd. 4.1 0.6
(Hong Kong, Banks)

Berjaya Sports Toto BHD 2.2 1.8
(Malaysia, Entertainment)

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

Hutchison Whampoa Ltd. Ord. 2.1 4.1
(Hong Kong, Electrical Equipment)

Swire Pacific Ltd. Class A 2.1 1.4
(Hong Kong, Air Transportation)

Genting BHD 2.0 1.1
(Malaysia, Lodging & Gaming)

Bangkok Bank Ltd. 2.0 1.8
(Thailand, Banks)

Resorts World BHD 1.9 1.5
(Malaysia, Lodging & Gaming)

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

Finance 29.6 27.9

Construction & Real Estate 22.9 14.0

Media & Leisure 10.5 4.2

Utilities 10.4 17.0

Holding Companies 5.8 2.2

Industrial Machinery & Equipment 3.9 5.3

Transportation 3.2 4.3

Nondurables 2.7 5.9

Durables 2.4 1.9

Retail & Wholesale 1.6 2.4

SOUTHEAST ASIA
INVESTMENTS APRIL 30, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 96.4%
SHARES VALUE (NOTE 1)
HONG KONG - 37.3%
Cheung Kong Holdings Ltd. 6,062,000 $ 43,296,082
Citic Pacific Ltd. Ord. 4,098,000 16,104,451
Dao Heng Bank Group Ltd. 2,675,000 10,235,661
First Pacific Co. Ltd. 11,624,586 15,478,010
Goldlion Holdings Ltd. 18,664,450 15,682,993
Great Eagle Holdings Ltd. 6,288,992 18,048,221
Guangzhou Investment Co. Ltd. 980,000 243,236
Hang Seng Bank Ltd. 4,023,200 40,826,457
Harbour Ring International Holdings Ltd.
(warrants) (a) 333 -
Henderson Land Development Co. Ltd. 2,177,000 15,618,949
Hong Kong & China Gas Co. Ltd. 2,295,600 3,768,770
Hong Kong & China Gas Co. Ltd.
(warrants) (a) 191,300 -
Hong Kong Electric Holdings Ord. 1,108,000 3,523,508
Hong Kong Telecommunications Ltd. 9,491,200 18,033,280
Hong Kong & Shanghai Hotels 4,180,000 7,213,698
HKR International Ltd. 3,359,600 3,821,824
Hutchison Whampoa Ltd. Ord. 3,332,000 20,675,052
Hysan Development Co. Ltd. 5,134,000 16,492,354
Hysan Development Co. Ltd.
(warrants) (a) 256,700 -
Jardine Matheson Holdings Ltd. Ord. 372,000 2,976,000
Midland Realty Holding Ltd. (a) 1,304,000 648,991
New World Development Co. 2,716,000 12,183,151
New World Infrastructure Ltd. (a) 1,300 2,890
New World Infrastructure Ltd. (a)(b) 720,000 1,600,889
Sun Hung Kai Properties Ltd. 5,240,000 49,956,694
Swire Pacific Ltd. Class A 2,398,000 20,459,428
Wharf Holdings Ltd. (b) 4,799,000 17,773,615
Wheelock & Co. Ltd. 3,542,000 7,234,458
Wing Hang Bank Ltd. 1,406,000 5,143,659
367,042,321
INDONESIA - 4.6%
Bank Dagang Nasional Indonesia PT 3,400,000 3,394,889
Bank International Indonesia PT
(For. Reg.) 334,000 1,645,974
Gudang Garam PT Perusahaan
(For. Reg.) 1,316,000 9,466,609
Pt Telkom (For. Reg) (a) 2,445,000 4,068,875
Telekomunikasiindo (Persero) PT,
Series B sponsored ADR (a) 371,600 12,680,850
Sampoerna Hanjaya Mandala
(For. Reg.) 1,145,000 12,662,121
Semen Gresik (For. Reg.) 380,000 1,317,801
SUCACO (Pt Supreme Cable
Manufacturing Corp.) (For Reg.) 370,500 441,545
45,678,664
KOREA (SOUTH) - 2.6%
Daelim Industrial Co. 8,462 169,621
Hyundai Engineering & Construction
Co. Ltd. (a) 8 404
Hyundai Motor Co. sponsored
GDR (a)(b) 34,000 527,000
Korea Electric Power Corp. 224,510 10,724,841
Korea Mobile Telecommunications Corp. 7,240 10,143,906
Pohang Iron & Steel Co. Ltd. 44,105 4,252,101
Samsung Electronics Co. Ltd. :
(vtg.) 189 25,742
(bonus issue 3/96) (a) 56 7,447
Samsung Co. Ltd. sponsored GDR (a) 21 163
25,851,225

SHARES VALUE (NOTE 1)
MALAYSIA - 20.9%
Affin Holdings BHD 1,919,000 $ 4,733,046
Berjaya Sports Toto BHD 6,707,833 21,521,020
Cement Manufacturers Sarawak BHD 187,000 1,087,427
Commerce Asset Holding BHD 630,000 4,295,167
Ekran BHD Ord. 2,426,000 9,583,357
EON (Edaran Otomobil Nasional) BHD 1,540,000 13,155,003
Genting BHD 2,235,000 20,077,802
Hicom Holdings BHD 1,834,000 5,406,016
Kian Joo Can Factory BHD 70,000 404,251
Kwong Yik Bank BHD 655,000 1,576,098
Magnum Corp. BHD 6,043,000 10,469,525
Malaysian Airlines Systems BHD 1,664,000 5,505,514
Malaysian Assurance Alliance BHD 1,114,000 6,656,748
Malayan Banking BHD 1,611,000 15,699,739
MBF Capital BHD 3,786,000 5,678,620
Nylex Malaysia SDN BHD 1,055,000 4,315,621
Pan Pacific Asia BHD (RFD) (a) 420,000 1,549,629
Perusahaan Otomobil Nasional BHD 605,000 2,984,359
Petronas Gas BHD 723,000 3,189,493
Public Bank BHD (For. Reg.) 3,793,000 10,876,258
Prime Utilities BHD 310,000 3,108,081
Prime Utilities BHD (warrants) (a) 165,000 383,798
Resorts World BHD 3,036,000 18,385,242
Time Engineering BHD 2,938,000 8,601,323
Telekom Malaysia BHD 1,364,000 12,855,023
UMW Holdings BHD (a) 476,000 1,565,350
United Engineers BHD 779,000 5,342,250
YTL Corp. BHD 1,392,500 6,980,650
YTL Corp. BHD (warrants) (a) 54,500 225,125
206,211,535
PHILIPPINES - 3.0%
Ayala Land, Inc. Class B 2,980,300 4,615,761
Benpress Holdings Corp. GDR (a)(b) 79,200 564,696
Benpress Holdings Corp. GDR 72,520 517,068
C & P Homes, Inc. (b) 2,260,700 1,945,153
Filinvest Land, Inc. ORD (a) 821,000 423,843
House of Investments, Inc. 4,398,000 1,177,285
Meralco Class B 526,232 4,910,157
Megaworld Properties & Holdings,
Inc. (a) 3,950,000 2,832,218
Petron Corp. 2,864,125 1,232,176
Philippine Commercial International Bank 52,000 695,985
Philippine Long Distance Telephone Co.
sponsored ADR 28,500 1,432,125
Philippine National Bank (a) 144,000 2,147,610
Pilipino Telephone Corp. (a) 4,006,000 5,897,935
SM Prime Holdings, Inc. (a) 2,575,200 748,433
29,140,445
SINGAPORE - 12.1%
Cerebos Pacific Ltd. 56,000 505,832
City Developments Ltd. 663,400 5,803,570
DBS Land Ltd. 2,343,000 9,498,649
Development Bank of Singapore Ltd.
(For. Reg.) 1,030,000 13,039,829
Hotel Properties Ltd. 2,520,000 4,875,107
Keppel Corp. Ltd. 747,000 6,747,440
Marco Polo Developments Ltd. 2,818,000 6,133,058
Overseas Union Bank Ltd. (For Reg.) 2,309,000 17,900,499
Overseas Chinese Banking Corp. 1,112,000 15,264,296
Ssangyong Cement Ltd. 320,000 883,073
Singapore International Airlines Ltd. 270,000 2,726,885
Singapore Press Holdings Ltd. (For. Reg.) 766,800 14,507,027
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
SINGAPORE - CONTINUED
Straits Steamship Co. Ltd. Ord. 184,000 $ 641,252
United Industrial Corp. Ltd. 3,968,000 4,035,733
United Overseas Bank Ltd. (For. Reg.) 1,251,000 12,189,687
Wing Tai Holdings Ltd. 1,800,000 4,660,028
119,411,965
THAILAND - 15.9%
Advanced Information Services
(For. Reg.) 308,200 5,222,385
Asia Securities Trading (For. Reg.) 70,600 201,247
Bangkok Bank Ltd. 1,379,100 19,983,396
Bangkok Expressway PCL (For. Reg.) (a) 211,800 347,990
Bangkok Metropolitan Bank PCL
(For. Reg.) (rights) (a) 33,645 17,316
Dhana Siam Finance & Securities PCL:
(For. Reg.) 1,253,900 8,836,400
(For. Reg.) (warrants) (a) 168,400 1,546,759
Dynamic Eastern Finance Thailand 1991
(For. Reg.) Co. Ltd. 575,100 967,664
Ekachart Finance & Securities Co. Ltd.
(For. Reg.) (warrants) (a) 20,280 20,474
Electricity Generating PCL (For. Reg.) 977,360 3,830,736
Finance One PCL
(For. Reg.) 1,042,900 7,308,166
(For. Reg.) (warrants) (a) 350,350 2,052,846
General Finance & Securities PCL
(For. Reg.) 432,700 1,850,134
Industrial Finance Corp. of Thailand,
Series F (warrants) (a) 665,000 1,342,716
Industrial Finance Corp. (For. Reg.) 380,000 1,534,533
Krung Thai Bank Ltd. (For. Reg.) 4,261,810 20,922,242
National Finance & Securities PCL
(For. Reg.) 1,181,100 6,967,314
(For. Reg.) (warrants) (a) 160,000 418,077
Nithipat Capital PCL 147,300 623,992
Nithipat Capital PLC (warrants)
(For. Reg.) (a) 80,000 116,396
Phatra Thanakit PCL (For. Reg.) 712,900 6,209,316
PTT Exploration & Production (For Reg.) 285,000 3,971,732
Property Perfect PCL
(For. Reg.) 129,200 654,734
(For. Reg.) (warrants) (a) 66,800 108,431
Sammakorn Co. Ltd. (For. Reg.) 44,700 92,024
Siam City Bank PCL (For. Reg.) 1,136,600 1,361,211
Seamico Securities PCL (For. Reg.) (a) 364,500 692,678
Securities One PCL (For. Reg.) 254,200 2,334,834
Shinawatra Computer & Communication
PCL (For. Reg.) 213,600 5,107,762
Siam Commercial Bank PCL (For. Reg.) 322,500 4,749,688
Total Access Communication PCL (a) 635,200 5,589,760
Thai Farmers Bank PCL 1,219,300 13,999,129
Thai Farmers Bank PCL (warrants)
(For. Reg.) (a) 580,000 1,653,305
Thai Military Bank Ltd. (For. Reg.) 2,697,960 13,031,301
United Communication Industry PCL
(For. Reg.) 844,700 11,571,004
Univest Land PCL (For. Reg.) 943,300 821,609
156,059,301
TOTAL COMMON STOCKS
(Cost $836,840,773) 949,395,456
NONCONVERTIBLE PREFERRED STOCKS - 0.0%
SHARES VALUE (NOTE 1)
KOREA (SOUTH) - 0.0%
Samsung Electronics Co. Ltd.
(non-vtg.) (bonus issue 3/96) (a)
(Cost $68,097) 789 $ 62,045
NONCONVERTIBLE BONDS - 0.0%
MOODY'S PRINCIPAL VALUE
RATINGS AMOUNT (C) (NOTE 1)
MALAYSIA - 0.0%
Prime Utilities BHD 1%,
3/11/01 (Cost $129,712) - MYR 330,000 89,994
REPURCHASE AGREEMENTS - 3.6%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.33%, dated
4/30/96 due 5/1/96 $ 35,426,244 35,421,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $872,459,582) $ 984,968,495
CURRENCY ABBREVIATIONS
MYR - Malaysian ringgit
LEGEND
(a) Non-income producing
(b) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $22,411,353 or 2.3% of net
assets.
(c) Principal amount is stated in United States dollars unless otherwise
noted.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $589,841,705 and $368,795,504, respectively.
INCOME TAX INFORMATION
At April 30, 1996, the aggregate cost of investment securities for income
tax purposes was $875,224,742. Net unrealized appreciation aggregated
$109,743,753, of which $129,540,828 related to appreciated investment
securities and $19,797,075 related to depreciated investment securities.
At October 31, 1995, the fund had a capital loss carryforward of
approximately $28,533,000 all of which will expire on October 31, 2003.
MARKET SECTOR DIVERSIFICATION
As a Percentage of Total Value of Investment in Securities
Aerospace & Defense 0.7%
Basic Industries 0.4
Construction & Real Estate 22.9
Durables 2.4
Energy 0.9
Finance 29.6
Holding Companies 5.8
Industrial Machinery & Equipment 3.9
Media & Leisure 10.5
Nondurables 2.7
Repurchase Agreements 3.6
Retail & Wholesale 1.6
Services 0.9
Technology 0.5
Transportation 3.2
Utilities 10.4
100.0%
SOUTHEAST ASIA
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996 (UNAUDITED)

ASSETS

Investment in $ 984,968,495
securities, at
value
(including
repurchase
agreements
of
$35,421,000)
(cost
$872,459,582
) - See
accompanyin
g schedule

Receivable for 18,705,681
investments
sold

Receivable for 1,671,586
fund shares
sold

Dividends 2,582,000
receivable

Interest 178
receivable

Redemption 1,559
fees
receivable

TOTAL ASSETS 1,007,929,499

LIABILITIES

Payable to $ 136,705
custodian
bank

Payable for 14,019,631
investments
purchased

Payable for 8,082,598
fund shares
redeemed

Accrued 513,924
management
fee

Other payables 547,682
and
accrued
expenses

TOTAL 23,300,540
LIABILITIES

NET ASSETS $ 984,628,959

Net Assets
consist of:

Paid in capital $ 877,326,604

Distributions in (1,229,919
excess of net )
investment
income

Accumulated (3,975,898
undistributed )
net realized
gain (loss) on
investments
and foreign
currency
transactions

Net unrealized 112,508,172
appreciation
(depreciation
) on
investments
and assets
and liabilities
in
foreign
currencies

NET ASSETS, for $ 984,628,959
62,448,332
shares
outstanding

NET ASSET $15.77
VALUE and
redemption
price per
share
($984,628,95
9 (divided by)
62,448,332
shares)

Maximum $16.26
offering price
per share
(100/97.00 of
$15.77)

STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)

INVESTMENT $ 7,170,332
INCOME
Dividends

Interest 1,442,375

8,612,707

Less foreign (483,812
taxes )
withheld

TOTAL 8,128,895
INCOME

EXPENSES

Management $ 3,179,043
fee
Basic fee

Performance (497,248
adjustment )

Transfer agent 1,159,733
fees

Accounting 253,829
fees and
expenses

Non-interested 1,418
trustees'
compensatio
n

Custodian fees 502,245
and
expenses

Registration 70,248
fees

Audit 31,757

Legal 3,200

Miscellaneous 5,554

Total 4,709,779
expenses
before
reductions

Expense (45,282 4,664,497
reductions )

NET 3,464,398
INVESTMENT
INCOME

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

Investment 28,448,080
securities

Foreign (78,799 28,369,281
currency )
transactions

Change in net
unrealized
appreciation
(depreciation
) on:

Investment 69,853,624
securities

Assets and 1,770 69,855,394
liabilities in
foreign
currencies

NET GAIN (LOSS) 98,224,675

NET INCREASE $ 101,689,073
(DECREASE)
IN NET ASSETS
RESULTING
FROM
OPERATIONS

OTHER $ 1,599,520
INFORMATION
Sales
charges paid
to FDC

Expense $ 38,492
reductions
Directed
brokerage
arrangements

Custodian 316
interest
credits

Transfer 6,474
agent
interest
credits

$ 45,282

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS SIX MONTHS YEAR ENDED
ENDED OCTOBER 31,
APRIL 30, 1996 1995
(UNAUDITED)

Operations $ 3,464,398 $ 5,996,540
Net
investment
income

Net realized 28,369,281 (21,052,271)
gain (loss)

Change in 69,855,394 (40,284,105)
net
unrealized
appreciation
(depreciation
)

NET INCREASE 101,689,073 (55,339,836)
(DECREASE)
IN NET
ASSETS
RESULTING
FROM
OPERATIONS

Distributions to (6,262,373) -
shareholders
From net
investment
income

In excess of (4,289,084) -
net
investment
income

Total (10,551,457) -
distributions

Share 461,958,857 315,850,011
transactions
Net proceeds
from sales of
shares

Reinvestmen 10,313,905 -
t of
distributions

Cost of (230,161,687) (437,770,027)
shares
redeemed

Redemption 1,512,224 1,393,801
fees

NET INCREASE 243,623,299 (120,526,215)
(DECREASE)
IN NET
ASSETS
RESULTING
FROM SHARE
TRANSACTIO
NS

TOTAL 334,760,915 (175,866,051)
INCREASE
(DECREASE)
IN NET ASSETS

NET ASSETS

Beginning of 649,868,044 825,734,095
period

End of period $ 984,628,959 $ 649,868,044
(including
under (over)
distribution
of net
investment
income of
$(1,229,919
) and
$5,866,341,
respectively)

OTHER
INFORMATION
Shares

Sold 30,127,936 23,184,715

Issued in 741,474 -
reinvestment
of
distributions

Redeemed (15,243,603) (32,874,037)

Net increase 15,625,807 (9,689,322)
(decrease)

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

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED OCTOBER APRIL 19, 1993
ENDED 31, (COMMENCEMENT
APRIL 30, 1996 OF
OPERATIONS) TO
OCTOBER 31,

</TABLE>

SELECTED PER-SHARE DATA (UNAUDITED) 1995 1994 F 1993

Net asset $ 13.88 $ 14.61 $ 13.24 $ 10.00
value,
beginning of
period

Income from
Investment
Operations

Net .09 .15 .04 .01
investment
income

Net realized 1.99 (.91) 1.23 3.22
and
unrealized
gain (loss)

Total from 2.08 (.76) 1.27 3.23
investment
operations

Less (.14) - (.04) -
Distributions
From net
investment
income

In excess of (.09) - (.03) -
net
investment
income

Total (.23) - (.07) -
distributions

Redemption .04 .03 .17 .01
fees added to
paid in
capital

Net asset $ 15.77 $ 13.88 $ 14.61 $ 13.24
value, end of
period

TOTAL RETURN B, 15.50% (5.00)% 10.87% 32.40%
C

RATIOS AND
SUPPLEMENT
AL DATA

Net assets, $ 984,629 $ 649,868 $ 825,734 $ 499,669
end of period
(000 omitted)

Ratio of 1.14% A 1.10% 1.47% 2.00% A,
expenses to E
average net
assets

Ratio of 1.13% A, 1.10% 1.47% 2.00% A
expenses to D
average net
assets after
expense
reductions

Ratio of net .84% A .90% .22% .45% A
investment
income to
average net
assets

Portfolio 94% A 94% 157% 14% A
turnover rate

Average $ .0135
commissioon
rate G

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
A ANNUALIZED B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN (SEE NOTE 7 OF NOTES TO FINANCIAL
STATEMENTS). C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR
PERIODS
OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. D FMR OR THE FUND HAS ENTERED INTO
VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE
FUND'S EXPENSES (SEE NOTE 7 OF NOTES TO FINANCIAL STATEMENTS). E FMR 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. A EFFECTIVE
NOVEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION 93-2, "DETERMINATION,
DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF INCOME, CAPITAL GAIN, AND
RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES." AS A RESULT, NET
INVESTMENT INCOME PER SHARE MAY REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO
TAX DIFFERENCES. G FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND
IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON
WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND
FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE
TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER.

</TABLE>

UNITED KINGDOM
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (income) and capital gains (the profits the
fund earns when it sells stocks that have grown in value). The fund has a
3% sales charge. If Fidelity had not reimbused certain fund expenses during
the period shown, the total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIOD ENDED PAST 6
APRIL 30, 1996 MONTHS
*

UNITED KINGDOM 7.33%

UNITED KINGDOM (INCL. 3% SALES CHARGE) 4.11%

FT-SE - Actuaries All Shares Index 7.59%

European Region Funds Average 9.69%

LIFE OF FUND.
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months (since the fund started on
November 1, 1995). For example, if you invested $1,000 in a fund that had a
5% return over the past year, the value of your investment would be $1,050.
You can compare the fund's returns to the performance of the FT-SE -
Actuaries All Shares Index - an unmanaged capitalization weighted,
broad-based index that includes more than 900 U.K. domiciled stocks. The
index covers more than 90% of the total capitalization of the U.K. market.
To measure how the fund's performance stacked up against its peers, you can
compare the fund's performance to the European region funds average, which
reflects the performance of 46 funds with similar objectives tracked by
Lipper Analytical Services over the past six months. These benchmarks
include reinvested dividends and capital gains, if any, and exclude the
effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year. In the fund's next report we'll report these
numbers for the fund and the benchmarks.
$10,000 OVER LIFE OF FUND

The growth of a hypothetical $10,000 INVESTMENT in the fund will appear in
the fund's next report.

An interview with Samuel Morse, Portfolio Manager of Fidelity United
Kingdom Fund
Q. SAM, HOW HAS THE FUND PERFORMED?
A. For the period ended April 30, 1996, the fund's total return was 7.33%,
while its benchmark index, the FT-SE-Actuaries All Shares Index, returned
7.59%. The total return for the European region funds average was 9.69%,
according to Lipper Analytical Services.
Q. WHAT HAS THE INVESTMENT ENVIRONMENT BEEN LIKE IN THE U.K. RECENTLY?
A. Well, I think the U.K. is further along in its economic recovery cycle
than most of Europe at this point. The most important implication of this
is that the likelihood of additional interest rate declines is low; in
fact, most investors expect that rates will rise before they'll fall again.
That, coupled with general anxiety over the prospects for the more
pro-business Conservative Party in the upcoming general election, has
depressed the stock market somewhat in the last quarter. There also have
been a few lesser issues, such as currency weakness and, yes, even some
fallout over the "mad cow disease" situation, that have contributed to the
market's performance.
Q. THE LATTER PART OF THE PERIOD SEEMED TO BE DOMINATED BY QUITE A BIT OF
MERGER AND ACQUISITION ACTIVITY.
A. That's true. To back up a bit, the market was fairly strong overall in
the last quarter of 1995. Financial companies in particular did well,
helped along by the expectation that interest rates would continue to fall.
Even as conditions changed, the large-cap sectors that had performed well
started to weaken and some of the smaller-cap areas came on stronger.
Mergers such as the one between Royal Insurance Holdings and Sun Alliance -
two of the largest insurers in Britain - became an important theme. So in
effect, what you had was two distinct sets of market conditions and results
over the period.
Q. LET'S TALK ABOUT THE WAY YOU'VE STRUCTURED THE PORTFOLIO. DO YOU HAVE AN
OVERALL SECTOR STRATEGY?
A. Not especially. My emphasis in picking stocks centers around dividend
growth - that is, finding companies that are growing their dividends over
time. But there are three sector themes that have emerged in the portfolio.
The first is the Lloyd's of London insurance market. A variety of companies
that do business with Lloyd's in one form or another has been affected by
the massive, problematic claims filed against Lloyd's over the past several
years. Now, the insurance market has gotten together to separate the
problem claims from Lloyd's otherwise-viable business. A favorable
settlement of the issue will be key to the entire insurance market,
including the fund's holdings in insurance broker Lloyd Thompson and
managing agent Ockham Holdings. The second area is energy stocks. After
facing declining real prices in oil for some time, oil companies have
effectively cut costs, reduced debt and focused on improving their profit
margins. As a result, I've overweighted the fund in the sector with such
stocks as Shell Transport and British Petroleum, which were both among the
top 10 stocks in the portfolio at the the end of period.
Q. WHAT'S THE THIRD SECTOR THEME YOU'RE PURSUING?
A. That would be media stocks. I view media as one of the strongest growth
sectors in the U.K. I'm especially favorable toward Reuters, another of my
top 10 holdings at the period's end. Reuters has a solid balance sheet and
cash flow, and I think its new open-system financial information database
will prove quite successful in the marketplace.
Q. ARE THERE ANY STOCKS THAT TURNED OUT TO BE PARTICULARLY DISAPPOINTING?
A. Not very many. But one of the results of the recent mergers in the
financial sector has been the fallout for some of the companies that serve
the sector. For example, I owned stock in a company called De La Rue that
prints bank notes and produces machinery for counting cash. As a result of
mergers, the spending plans of several banks were put on hold, which
affected its orders and hurt the stock price. Also, the utilities
regulators have been somewhat tough this period, which hurt the performance
of British Telecom in particular, one of the fund's largest positions.
Q. HOW DO YOU SEE THE NEXT SEVERAL MONTHS?
A. Although I don't try to time the market, I did have some thoughts at the
beginning of the year as to where I thought the British market might be
headed. I felt that stock prices could follow a "head and shoulders"
pattern, where stocks would perform well in the first six months, then turn
downward over the next period and end little changed overall. I think that
scenario is still fairly intact. The stocks that have led the market over
the past few months have been in the
smaller-cap area. There seems to be some speculative buying on the part of
investors in some of the technology-related sectors, where the stock prices
of many companies with little to show in the way of earnings have been
driven up. In this kind of environment, I plan to stay fully invested, but
I may reduce the fund's exposure to certain small-cap stocks as they reach
new highs and maintain the fund's core weighting in some of the bigger,
brand-name stocks in the British market.

FUND FACTS
GOAL: long-term growth of capital by investing
mainly in equity securities of British issuers
START DATE: November 1, 1995
TRADING SYMBOL: FUTYF*
SIZE: as of April 30, 1996, more than $2 million
PORTFOLIO MANAGER: Samuel Morse, since
1995; joined Fidelity in 1990
* TEMPORARY TRADING SYMBOL
(checkmark)
SAMUEL MORSE ON HIS INVESTMENT STYLE:
"My investment style is to concentrate on companies
with good prospects for dividend growth. I'm not as
focused on earnings as some managers; I
consistently value companies based on how much
I'm receiving in dividend yield versus how quickly
they're growing their dividends. Basically, I look for
five criteria. The first is positive fundamentals
overall. The second is sufficient dividend cover -
that is, cash flow per year divided by dividends paid
per year. That helps to ensure that even in tough
times the company can continue to grow its dividend.
Third, I like to see a strong balance sheet. There, my
evaluation can vary from sector to sector. For
example, in looking at a utility that has stable
revenues, I feel it can afford to take on more debt
than an emerging growth company can. Next, I look
for businesses that generate solid cash flow - too
often companies with growing earnings aren't able
to generate enough cash to grow their dividends,
too. Finally, I try to project the growth rate of
dividends I can expect from a stock over, say, a
three- to five-year period, and make sure that the
stock's valuation can continue to look attractive on
the basis of its dividend yield. The net result is a lot
of the solid, steadily-growing names you see in the
portfolio, rather than turnaround or recovery
situations that don't meet these criteria."
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
UNITED KINGDOM
INVESTMENT SUMMARY

GEOGRAPHIC DIVERSIFICATION
AS OF APRIL 30, 1996
Other 3.3%
Row: 1, Col: 1, Value: 96.7
Row: 1, Col: 2, Value: 3.3
United Kingdom 96.7%
ASSET ALLOCATION
% OF FUND'S
INVESTMENTS

Stocks 100.0

TOP TEN STOCKS
% OF FUND'S
INVESTMENTS

British Petroleum PLC Ord. 4.5
(Oil & Gas)

British Telecommunications PLC Ord. 4.2
(Telephone Services)

Shell Transport & Trading PLC 3.4
(Holding Companies)

Reuters Holdings PLC Ord. 3.1
(Computer Services & Software)

SmithKline Beecham PLC Ord. 2.8
(Drugs & Pharmaceuticals)

Unilever PLC Ord. 2.8
(Household products)

Boots Co. PLC (The) 2.8
(Retail & Wholesale, Miscellaneous)

BBA Group PLC 2.4
(Autos, Tires & Accessories)

BTR PLC Ord. 2.1
(Holding Companies )

Barclays PLC Ord. 2.1
(Banks )

TOP TEN MARKET SECTORS
% OF FUND'S
INVESTMENTS

Finance 16.0

Utilities 14.5

Nondurables 9.2

Retail & Wholesale 8.3

Media & Leisure 6.9

Constuction & Real Estate 6.3

Holding Companies 5.6

Technology 5.4

Energy 4.5

Health 4.3

UNITED KINGDOM
INVESTMENTS APRIL 30, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 100%
SHARES VALUE (NOTE 1)
AEROSPACE & DEFENSE - 0.9%
British Aerospace PLC 1,509 $ 19,800
BASIC INDUSTRIES - 3.9%
CHEMICALS & PLASTICS - 1.5%
Albright & Wilson PLC 5,800 15,296
BOC Group PLC 1,400 19,477
34,773
METALS & MINING - 2.4%
Cookson Group PLC 6,300 30,007
Johnson Matthey PLC 2,500 22,892
52,899
TOTAL BASIC INDUSTRIES 87,672
CONGLOMERATES - 1.3%
Tomkins PLC Ord. 7,168 29,604
CONSTRUCTION & REAL ESTATE - 6.3%
BUILDING MATERIALS - 3.2%
Baynes (Charles) PLC 8,000 16,761
CRH PLC 3,963 35,602
Polypipe PLC 6,400 18,522
70,885
CONSTRUCTION - 3.1%
Beazer Homes Group PLC 6,900 21,633
Persimmon PLC Ord. 6,200 22,055
Taylor Woodrow PLC 9,600 25,178
68,866
TOTAL CONSTRUCTION & REAL ESTATE 139,751
DURABLES - 4.0%
AUTOS, TIRES, & ACCESSORIES - 3.2%
BBA Group PLC 10,130 53,060
Lex Service PLC Ord. 3,400 18,706
71,766
TEXTILES & APPAREL - 0.8%
Tie Rack PLC 6,800 16,604
TOTAL DURABLES 88,370
ENERGY - 4.5%
OIL & GAS - 4.5%
British Petroleum PLC Ord. 10,957 99,011
FINANCE - 16.0%
BANKS - 6.8%
Anglo-Irish Bank Corp. PLC 17,325 16,713
Barclays PLC Ord. 4,180 46,435
Lloyds TSB Group PLC 9,246 44,388
National Westminster Bank PLC Ord. 4,700 43,391
150,927
CREDIT & OTHER FINANCE - 1.6%
Perpetual PLC 1,000 36,477
INSURANCE - 7.6%
Hogg Robinson Group 5,400 20,511
Lloyd Thompson Group PLC 7,600 19,360
London Insurance Market Investment
Trust PLC 18,200 34,291
Ockham Holdings PLC 22,100 18,321

SHARES VALUE (NOTE 1)
Prudential Corp. PLC 6,500 $ 44,823
Royal Insurance Holdings PLC 5,841 31,959
169,265
TOTAL FINANCE 356,669
HEALTH - 4.3%
DRUGS & PHARMACEUTICALS - 2.8%
SmithKline Beecham PLC Ord. 5,900 62,696
MEDICAL FACILITIES MANAGEMENT - 1.5%
Takare PLC Ord. 8,100 18,314
Westminster Health Care Holdings PLC 3,300 15,420
33,734
TOTAL HEALTH 96,430
HOLDING COMPANIES - 5.6%
BTR PLC Ord. 9,900 47,751
Shell Transport & Trading PLC 5,800 76,627
124,378
INDUSTRIAL MACHINERY & EQUIPMENT - 1.7%
ELECTRICAL EQUIPMENT - 1.7%
Premier Farnell PLC 3,300 36,609
MEDIA & LEISURE - 6.9%
BROADCASTING - 2.7%
Capital Radio PLC 2,200 22,748
GWR Group PLC 6,500 20,869
Yorkshire TV Holdings PLC 1,000 15,902
59,519
ENTERTAINMENT - 1.7%
Capital Corp. PLC 4,700 15,727
London Clubs International PLC 2,600 21,398
37,125
PUBLISHING - 1.0%
Mirror Group Newspaper PLC 6,300 21,651
RESTAURANTS - 1.5%
Compass Group PLC Ord. 4,200 34,629
TOTAL MEDIA & LEISURE 152,924
NONDURABLES - 9.2%
BEVERAGES - 4.2%
Bass PLC Ord. 3,800 44,877
Bulmer (HP) Holdings PLC 1,725 16,017
Cadbury-Schweppes PLC Ord. 4,175 32,409
93,303
FOODS - 2.2%
Christian Salvesen PLC Ord. 4,300 17,240
Grand Metropolitan PLC 4,800 31,617
48,857
HOUSEHOLD PRODUCTS - 2.8%
Unilever PLC Ord. 3,400 62,318
TOTAL NONDURABLES 204,478
RETAIL & WHOLESALE - 8.3%
GROCERY STORES - 3.6%
Argyll Group PLC Ord. 3,432 17,175
Iceland Group PLC 13,900 31,846
Tesco PLC Ord. 7,500 31,710
80,731
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
RETAIL & WHOLESALE - CONTINUED
RETAIL & WHOLESALE, MISCELLANEOUS - 4.7%
Boots Co. PLC (The) 6,500 $ 62,067
Goldsmiths Group PLC 5,500 24,373
Wickes PLC 8,800 17,310
103,750
TOTAL RETAIL & WHOLESALE 184,481
SERVICES - 4.3%
LEASING & RENTAL - 2.6%
National Parking Corp. Ltd. 2,400 15,917
Thorn EMI PLC Ord. 1,510 41,936
57,853
SERVICES - 1.7%
Hays PLC 3,000 19,399
Healthcall Group PLC 8,500 18,449
37,848
TOTAL SERVICES 95,701
TECHNOLOGY - 5.4%
COMPUTER SERVICES & SOFTWARE - 3.1%
Reuters Holdings PLC Ord. 6,000 68,009
ELECTRONIC INSTRUMENTS - 0.8%
Sanderson Electronics PLC 8,000 18,389
ELECTRONICS - 1.5%
Electrocomponents PLC 5,600 33,637
TOTAL TECHNOLOGY 120,035
TRANSPORTATION - 2.9%
SHIPPING - 2.1%
Associated British Ports PLC Ord. 10,100 45,671
TRUCKING & FREIGHT - 0.8%
Ocean Group PLC 2,800 18,570
TOTAL TRANSPORTATION 64,241
UTILITIES - 14.5%
CELLULAR - 4.3%
International Cabletel, Inc. (a) 700 20,475
Securicor Group PLC Class A (non-vtg.) 2,400 44,224
Vodafone Group PLC 7,729 30,931
95,630
ELECTRIC UTILITY - 3.1%
East Midland Electricity PLC 1,600 15,109
National Grid Co. PLC (a) 11,880 36,619
Northern Ireland Electric PLC 2,400 16,279
68,007
TELEPHONE SERVICES - 4.1%
British Telecommunications PLC Ord. 16,800 92,301
WATER - 3.0%
Hyder PLC 3,100 34,344
Southern Water PLC Ord. 2,833 32,517
66,861
TOTAL UTILITIES 322,799
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $2,095,745) 2,222,953
LEGEND
(d) Non-income producing
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $2,322,549 and $229,098, respectively.
INCOME TAX INFORMATION
At April 30, 1996, the aggregate cost of investment securities for income
tax purposes was $2,095,745. Net unrealized appreciation aggregated
$127,208, of which $180,062 related to appreciated investment securities
and $52,854 related to depreciated investment securities.
UNITED KINGDOM
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996 (UNAUDITED)

ASSETS

Investment in $ 2,222,953
securities, at
value
(cost
$2,095,745)
- - See
accompanyin
g schedule

Cash 22,121

Receivable for 20,742
investments
sold

Receivable for 4,180
fund shares
sold

Dividends 14,671
receivable

Prepaid 14,089
expenses

Receivable 11,978
from
investment
adviser for
expense
reductions

TOTAL ASSETS 2,310,734

LIABILITIES

Payable for $ 87,160
investments
purchased

Payable for 4,556
fund shares
redeemed

Other payables 20,341
and
accrued
expenses

TOTAL 112,057
LIABILITIES

NET ASSETS $ 2,198,677

Net Assets
consist of:

Paid in capital $ 2,057,013

Undistributed 12,652
net
investment
income

Accumulated 1,987
undistributed
net realized
gain (loss) on
investments
and foreign
currency
transactions

Net unrealized 127,025
appreciation
(depreciation
) on
investments
and assets
and liabilities
in
foreign
currencies

NET ASSETS, for $ 2,198,677
205,634
shares
outstanding

NET ASSET $10.69
VALUE and
redemption
price per
share
($2,198,677
(divided by) 205,634
shares)

Maximum $11.02
offering price
per share
(100/97.00 of
$10.69)

STATEMENT OF OPERATIONS
NOVEMBER 1, 1995 (COMMENCEMENT OF
OPERATIONS) TO
APRIL 30, 1996 (UNAUDITED)

INVESTMENT $ 38,449
INCOME
Dividends

Interest 2,015

40,464

Less foreign (4,241
taxes )
withheld

TOTAL 36,223
INCOME

EXPENSES

Management $ 6,584
fee

Transfer agent 2,274
fees

Accounting 27,321
fees and
expenses

Non-interested 2
trustees'
compensatio
n

Custodian fees 19,547
and
expenses

Registration 20,294
fees

Audit 14,479

Total 90,501
expenses
before
reductions

Expense (73,372 17,129
reductions )

NET 19,094
INVESTMENT
INCOME

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

Investment 2,294
securities

Foreign (307 1,987
currency )
transactions

Change in net
unrealized
appreciation
(depreciation
) on:

Investment 127,208
securities

Assets and (183 127,025
liabilities in )
foreign
currencies

NET GAIN (LOSS) 129,012

NET INCREASE $ 148,106
(DECREASE)
IN NET ASSETS
RESULTING
FROM
OPERATIONS

OTHER $ 10,590
INFORMATION
Sales
charges paid
to FDC

Expense $ 73,372
reductions
FMR
reimburseme
nt

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS NOVEMBER 1, 1995
(COMMENCEMENT
OF
OPERATIONS) TO
APRIL 30, 1996
(UNAUDITED)

Operations $ 19,094
Net
investment
income

Net realized 1,987
gain (loss)

Change in 127,025
net
unrealized
appreciation
(depreciation
)

NET INCREASE 148,106
(DECREASE)
IN NET
ASSETS
RESULTING
FROM
OPERATIONS

Distributions to (6,442)
shareholders
from net
investment
income

Share 2,206,238
transactions
Net proceeds
from sales of
shares

Reinvestmen 6,442
t of
distributions

Cost of (156,096)
shares
redeemed

Redemption 429
fees

NET INCREASE 2,057,013
(DECREASE)
IN NET
ASSETS
RESULTING
FROM SHARE
TRANSACTIO
NS

TOTAL 2,198,677
INCREASE
(DECREASE)
IN NET ASSETS

NET ASSETS

Beginning of -
period

End of period $ 2,198,677
(including
undistribute
d net
investment
income of
$12,652)

OTHER
INFORMATION
Shares

Sold 220,119

Issued in 651
reinvestment
of
distributions

Redeemed (15,136)

Net increase 205,634
(decrease)

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

</TABLE>

FINANCIAL HIGHLIGHTS
NOVEMBER 1, 1995
(COMMENCEMENT
OF
OPERATIONS) TO
APRIL 30, 1996
(UNAUDITED)

SELECTED PER-SHARE DATA

Net asset $ 10.00
value,
beginning of
period

Income from
Investment
Operations

Net .10
investment
income

Net realized .63
and
unrealized
gain (loss)

Total from .73
investment
operations

Less (.04)
Distributions
From net
investment
income

Redemption -
fees added to
paid in
capital

Net asset $ 10.69
value, end of
period

TOTAL RETURN B, 7.33%
C

RATIOS AND
SUPPLEMENT
AL DATA

Net assets, $ 2,199
end of period
(000 omitted)

Ratio of 2.00% A,
expenses to D
average net
assets

Ratio of net 2.23% A
investment
income to
average net
assets

Portfolio 30% A
turnover rate

Average $ .0082
commission
rate E

NOTES TO FINANCIAL STATEMENTS
For the period ended April 30, 1996 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Canada Fund, Fidelity Emerging Markets Fund, Fidelity Europe Fund,
Fidelity Europe Capital Appreciation Fund, Fidelity France Fund, Fidelity
Germany Fund, Fidelity Hong Kong and China Fund, Fidelity Japan Fund,
Fidelity Japan Small Companies Fund, Fidelity Latin America Fund, Fidelity
Nordic Fund, Fidelity Pacific Basin Fund, Fidelity Southeast Asia Fund and
Fidelity United Kingdom Fund (the funds) are funds of Fidelity Investment
Trust (the trust). The trust is registered under the Investment Company Act
of 1940, as amended (the 1940 Act), as an open-end management investment
company organized as a Massachusetts business trust. Each fund is
authorized to issue an unlimited number of shares. The financial statements
have been prepared in conformity with generally accepted accounting
principles which permit management to make certain estimates and
assumptions at the date of the financial statements. The following
summarizes the significant accounting policies of the funds:
SECURITY VALUATION. Securities for which quotations are readily available
are valued at the last sale price, or if no sale price, at the closing bid
price in the principal market in which such securities are normally traded.
Securities, including restricted securities, for which quotations are not
readily available are valued primarily using dealer-supplied valuations or
at their fair value as determined in good faith under consistently applied
procedures under the general supervision of the Board of Trustees.
Short-term securities maturing within sixty days of their purchase date are
valued at amortized cost or original cost plus accrued interest, both of
which approximate current value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the funds are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Purchases and
sales of securities, income receipts, and expense payments are translated
into U.S. dollars at the prevailing exchange rate on the respective dates
of the transactions.
Net realized gains and losses on foreign currency transactions represent
net gains and losses from sales and maturities of forward currency
contracts, disposition of foreign currencies, currency gains and losses
realized between the trade and settlement dates on securities transactions,
and the difference between the amount of net investment income accrued and
the U.S. dollar amount actually received. The effects of changes in foreign
currency exchange rates on investments in securities are included with the
net realized and unrealized gain or loss on investment securities.
INCOME TAXES. As qualified regulated investment companies under Subchapter
M of the Internal Revenue Code, Canada, Emerging Markets, Europe, Europe
Capital Appreciation, Japan, Latin America, Pacific Basin and Southeast
Asia are not subject to U.S. federal income taxes to the extent that each
fund distributes substantially all of its taxable income for its fiscal
year. France, Germany, Hong Kong and China, Japan Small Companies, Nordic
and United Kingdom intend to qualify as regulated investment companies
under Subchapter M of the Internal Revenue Code. Each fund may be subject
to foreign taxes on income, gains on investments or currency repatriation.
Each fund accrues such taxes as applicable. The schedules of investments
include information regarding income taxes under the caption "Income Tax
Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date,
except certain dividends from foreign securities where the ex-dividend date
may have passed, are recorded as soon as the funds are informed of the
ex-dividend date. Interest income, which includes accretion of original
issue discount, is accrued as earned. Investment income is recorded net of
foreign taxes withheld where recovery of such taxes is uncertain.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
PREPAID EXPENSES. FMR bears all organizational expenses except for
registering and qualifying the funds and shares of the funds for
distribution under federal and state securities law. These expenses are
borne by the funds and amortized over their initial year of operation.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date. Certain foreign currency gains (losses) are taxable as
ordinary income and, therefore, increase (decrease) taxable ordinary income
available for distribution.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences, which may result in distribution
reclassifications, are primarily due to differing treatments for futures
transactions, market discount, foreign currency transactions, passive
foreign investment companies (PFIC), capital loss carryforwards, and losses
deferred due to wash sales and excise tax regulations. Certain funds also
utilized earnings and profits distributed to shareholders on redemption of
shares as a part of the dividends paid deduction for income tax purposes.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect the per-share allocation between net investment income and realized
and unrealized gain (loss). Undistributed net investment income (loss), or
distributions in excess of net investment income, and accumulated
undistributed net realized gain (loss) on investments and foreign currency
transactions may include temporary book and tax basis differences which
will reverse in a subsequent period. Any taxable income or gain remaining
at fiscal year end is distributed in the following year.
REDEMPTION FEES. Shares held in Emerging Markets, France, Germany, Hong
Kong and China, Japan Small Companies, Latin America, Nordic, Southeast
Asia and United Kingdom less than 90 days are subject to a redemption fee
equal to 1.50% of the proceeds of the redeemed shares. Shares held in
Canada, Europe, Europe Capital Appreciation, Japan and Pacific Basin less
than 90 days are subject to a redemption fee equal to 1.00% of the proceeds
of the redeemed shares. In December 1995, The Board of Trustees of Canada
and Japan approved a 1.50% redemption fee
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
REDEMPTION FEES - CONTINUED
on shares held less than 90 days which is effective on shares purchased on
or after February 1, 1996. These fees, which are retained by the funds, are
accounted for as an addition to paid in capital.
SECURITY TRANSACTIONS. Security transactions are accounted for as of the
trade date. Gains and losses on securities sold are determined on the basis
of identified cost.
2. OPERATING POLICIES.
FORWARD FOREIGN CURRENCY CONTRACTS. The funds may use foreign currency
contracts to facilitate transactions in foreign securities and to manage
the funds' currency exposure. Contracts to buy generally are used to
acquire exposure to foreign currencies, while contracts to sell are used to
hedge the funds' investments against currency fluctuations. Also, a
contract to buy or sell can offset a previous contract. Losses may arise
from changes in the value of the foreign currency or if the counterparties
do not perform under the contracts' terms.
The U.S. dollar value of forward foreign currency contracts is determined
using forward currency exchange rates supplied by a quotation service.
Purchases and sales of forward foreign currency contracts having the same
settlement date and broker are offset and any realized gain (loss) is
recognized on the date of offset; otherwise, gain (loss) is recognized on
settlement date.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the funds, along with other affiliated
entities of Fidelity Management & Research Company (FMR), may transfer
uninvested cash balances into one or more joint trading accounts. These
balances are invested in one or more repurchase agreements that mature in
60 days or less from the date of purchase, and are collateralized by U.S.
Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The funds, through their custodians, receive
delivery of the underlying U.S. Treasury or Federal Agency securities, the
market value of which is required to be at least equal to the repurchase
price. For term repurchase agreement transactions, the underlying
securities are marked-to-market daily and maintained at a value at least
equal to the repurchase price. FMR, the funds' investment adviser, is
responsible for determining that the value of the underlying securities
remains in accordance with the market value requirements stated above.
INTERFUND LENDING. Pursuant to an exemptive order issued by the SEC, the
funds, along with other registered investment companies having management
contracts with FMR, may participate in an interfund lending program. This
program provides an alternative credit facility allowing the funds to
borrow from, or lend money to, other participating funds.
FUTURES CONTRACTS AND OPTIONS. The funds may use futures and options
contracts to manage their exposure to the stock and bond markets and to
fluctuations in interest rates and currency values. Buying futures, writing
puts, and buying calls tend to increase the funds' exposure to the
underlying instrument. Selling futures, buying puts, and writing calls tend
to decrease the funds' exposure to the underlying instrument, or hedge
other fund investments. Futures contracts involve, to varying degrees, risk
of loss in excess of the futures variation margin reflected in the
Statement of Assets and Liabilities. The underlying face amount at value of
any open futures contract at period end is shown in the schedule of
investments under the caption "Futures Contracts." This amount represents
each contract's exposure to the underling instrument at period end. Losses
may arise from changes in the value of the underlying instruments, if there
is an illiquid secondary market for the contracts, or if the counterparties
do not perform under the contracts' terms.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Exchange-traded
options are valued using the last sale price or, in the absence of a sale,
the last offering price. Options traded over-the-counter are valued using
dealer-supplied valuations.
RESTRICTED SECURITIES. The funds are permitted to invest in securities
that are subject to legal and contractual restrictions on resale. These
securities generally may be resold in transactions exempt from registration
or to the public if the securities are registered. Disposal of these
securities may involve time-consuming negotiations and expense, and prompt
sale at an acceptable price may be difficult. Restricted securities
(excluding 144A issues) at the end of the period are shown under the
caption "Other Information" at the end of each applicable fund's schedule
of investments.
3. PURCHASES AND SALES OF INVESTMENTS.
Information regarding purchases and sales of securities (other than
short-term securities) and the market value of futures contracts opened and
closed is included under the caption "Other Information" at the end of each
applicable fund's schedule of investments.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As each fund's investment adviser, FMR receives a monthly
basic fee that is calculated on the basis of a group fee rate plus a fixed
individual fund fee rate applied to the average net assets of each fund.
The group fee rate is the weighted average of a series of rates and is
based on the monthly average net assets of all the mutual funds advised by
FMR. The rates ranged from .2500% to .5200% for the period. In the event
that these rates were lower than the contractual rates in effect during the
period, FMR voluntarily implemented the above rates, as they resulted in
the same or a lower management fee. The annual individual fund fee rate is
.45% for each fund.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
MANAGEMENT FEE - CONTINUED
The basic fee for Canada, Europe, Europe Capital Appreciation, Japan,
Pacific Basin, and Southeast Asia is subject to a performance adjustment
(up to a maximum of (plus/minus) .20%) based on each fund's investment
performance as compared to the appropriate index over a specified period of
time.
For the period, each fund's management fee was equivalent to the following
annualized rates expressed as a percentage of average net assets after the
performance adjustment, if applicable:
Canada .50%
Emerging Markets .76%
Europe .81%
Europe Capital Appreciation .76%
France .77%
Germany .77%
Hong Kong and China .77%
Japan .62%
Japan Small Companies .77%
Latin America .76%
Nordic .77%
Pacific Basin .70%
Southeast Asia .65%
United Kingdom .76%
SUB-ADVISER FEE. FMR, on behalf of the funds, entered into sub-advisory
agreements with Fidelity Management & Research (U.K.) Inc., Fidelity
Management & Research Far East Inc., Fidelity International Investment
Advisors (FIIA), and Fidelity Investment Japan Ltd. (Japan, Japan Small
Companies, Southeast Asia, and Hong Kong and China only). In addition, FIIA
entered into a sub-advisory agreement with its subsidiary, Fidelity
International Investment Advisors (U.K.) Limited (FIIAL U.K.). Under the
sub-advisory arrangements, FMR may receive investment advice and research
services and may grant the sub-advisers investment management authority to
buy and sell securities. FMR pays its sub-advisers either a portion of its
management fee or a fee based on costs incurred for these services. FIIA
pays FIIAL U.K. a fee based on costs incurred for either service.
SALES LOAD. Fidelity Distributors Corporation (FDC), an affiliate of FMR,
is the general distributor of the funds. FDC is paid a 3% sales charge on
sales of shares of each fund.
Shares of Canada, Europe, and Pacific Basin purchased before October 12,
1990 are subject to a 1% deferred sales charge upon redemption.
The amount received by FDC for sales charges and deferred sales charges is
shown under the caption "Other Information" on each applicable fund's
Statement of Operations.
TRANSFER AGENT FEE. Fidelity Service Co. (FSC), an affiliate of FMR, is the
funds' transfer, dividend disbursing and shareholder servicing agent. FSC
receives account fees and asset-based fees that vary according to account
size and type of account. FSC pays for typesetting, printing and mailing of
all shareholder reports, except proxy statements.
For the period, each fund's transfer agent fees were equivalent to the
following annualized rates expressed as a percentage of average net assets:
Canada .37%
Emerging Markets .32%
Europe .30%
Europe Capital Appreciation .33%
France .30%
Germany .32%
Hong Kong and China .34%
Japan .30%
Japan Small Companies .29%
Latin America .36%
Nordic .36%
Pacific Basin .34%
Southeast Asia .28%
United Kingdom .27%
ACCOUNTING FEE. FSC maintains the funds' accounting records. The fee is
based on the level of average net assets for the month plus out-of-pocket
expenses.
BROKERAGE COMMISSIONS. Certain funds placed a portion of their portfolio
transactions with brokerage firms which are affiliates of FMR. The
commissions paid to these affiliated firms are shown under the caption
"Other Information" at the end of each applicable fund's schedule of
investments.
5. INTERFUND LENDING PROGRAM.
Certain funds participated in the interfund lending program as borrowers.
The maximum loan and the average daily loan balances during the periods for
which loans were outstanding are shown under the caption "Other
Information" at the end of each applicable fund's schedule of investments.
6. BANK BORROWINGS.
Each fund is permitted to have bank borrowings for temporary or emergency
purposes to fund shareholder redemptions. Each fund has established
borrowing arrangements with certain banks. Under the most restrictive
arrangement, each fund must pledge to the bank securities having a market
value in excess of 220% of the total bank borrowings. The interest rate on
the borrowings is the bank's base rate, as revised from time to time. The
maximum loan and the average daily loan balances during the periods for
which loans were outstanding are shown under the caption "Other
Information" at the end of each applicable fund's schedule of investments.
7. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse certain funds' operating expenses
(excluding interest, taxes, brokerage commissions and extraordinary
expenses) above an annual rate of 2.00% of average net assets.
FMR has directed certain portfolio trades to brokers who paid a portion of
certain funds' expenses. In addition, certain funds have entered into
arrangements with their custodian and transfer agent whereby interest
earned on uninvested cash balances was used to offset a portion of certain
funds' expenses.
For the period, the reductions under these arrangements are shown under the
caption "Other Information" on each applicable fund's Statement of
Operations.
8. BENEFICIAL INTEREST.
At the end of the period, FMR and its subsidiaries were the record owners
of more than 5% of the outstanding shares of the following funds:
FMR FUND % OF OWNERSHIP
France 16
Germany 17
Nordic 14
United Kingdom 49
9. CREDIT RISK.
The relatively large investments of Emerging Markets, Latin America,
Pacific Basin and Southeast Asia in countries with limited or developing
capital markets may involve greater risks than investments in more
developed markets and the prices of such investments may be volatile. The
consequences of political, social or economic changes in these markets may
have disruptive effects on the market prices of these funds' investments
and the income they generate, as well as the fund's ability to repatriate
such amounts.
10. TRANSACTIONS WITH AFFILIATED COMPANIES.
An affiliated company is a company in which a fund has ownership of at
least 5% of the voting securities. Information regarding affiliated
companies is included under the caption "Other Information" at the end of
each applicable fund's schedule of investments.
TO CALL FIDELITY

FOR PORTFOLIO INFORMATION AND QUOTES
The Fidelity Telephone Connection offers you special automated telephone
services for quotes and balances. The services are easy to use,
confidential and quick. All you need is a Touch Tone telephone.
YOUR PERSONAL IDENTIFICATION NUMBER
(PIN)
The first time you call one of our automated telephone services, we'll ask
you to set up your Personal Identification Number (PIN). The PIN assures
that only you have automated telephone access to your account information.
Please have your Customer Number (T-account #) handy when you call - you'll
need it to establish your PIN. If you would ever like to change your PIN,
just choose the "Change your Personal Identification Number" option when
you call. If you forget your PIN, please call a Fidelity representative at
1-800-544-6666 for assistance.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND QUOTES*
1-800-544-8544
Just make a selection from this recorded menu:
PRESS
For quotes on funds you own.
1
For an individual fund quote.
2
For the ten most frequently
requested Fidelity fund quotes.
3
For quotes on Fidelity Select
Portfolios(registered trademark).
4
To change your Personal
Identification Number (PIN).
5
To speak with a Fidelity
representative.
6
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND ACCOUNT
BALANCES 1-800-544-7544
Just make a selection from this record-
ed menu:
PRESS
For balances on funds you own.
1
For your most recent fund activity
(purchases, redemptions, and
dividends).
2
To change your Personal
Identification Number (PIN).
3
To speak with a Fidelity
representative.
4
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD AND
RETURN WILL VARY AND, EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL
ALSO VARY. THIS MEANS THAT YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR
SHARES. THERE IS NO ASSURANCE THAT MONEY MARKET FUNDS WILL BE ABLE
TO MAINTAIN A STABLE $1 SHARE PRICE; AN INVESTMENT IN A MONEY MARKET FUND
IS NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT. TOTAL RETURNS
ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE, REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS, AND THE EFFECTS OF ANY SALES CHARGES.

TO VISIT FIDELITY

For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 East Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19100 Von Karman Avenue
Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
811 Wilshire Boulevard
Los Angeles, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
950 Northgate Drive
San Rafael, CA
455 Market Street
San Francisco, CA
1400 Civic Drive
Walnut Creek, CA
6300 Canoga Ave.
Woodland Hills, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
185 Asylum Street
Hartford, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
DELAWARE
222 Delaware Avenue
Wilmington, DE
FLORIDA
4400 N. Federal Highway
Boca Raton, FL
90 Alhambra Plaza
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
4001 Tamiami Trail, North
Naples, FL
1907 West State Road 434
Orlando, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
2000 66th Street, North
St. Petersburg, FL
GEORGIA
3525 Piedmont Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
HAWAII
700 Bishop Street
Honolulu, HI
ILLINOIS
215 East Erie Street
Chicago, IL
One North Franklin
Chicago, IL
540 Lake Cook Road
Deerfield, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
LOUISIANA
201 St. Charles Avenue
New Orleans, LA
MAINE
3 Canal Plaza
Portland, ME
MARYLAND
7401 Wisconsin Avenue
Bethesda, MD
1 West Pennsylvania Ave.
Towson, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
29115 Northwestern Hwy.
Southfield, MI
MINNESOTA
7600 France Avenue South
Edina, MN
MISSOURI
700 West 47th Street
Kansas City, MO
8885 Ladue Road
Ladue, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
56 South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
505 Millburn Avenue
Short Hills, NJ
NEW YORK
1050 Franklin Avenue
Garden City, NY
999 Walt Whitman Road
Melville, L.I., NY
1271 Avenue of the
Americas
New York, NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
4611 Sharon Road
Charlotte, NC
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
1903 East Ninth Street
Cleveland, OH
OREGON
121 S.W. Morrison Street
Portland, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
5100 Poplar Avenue
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
7001 Preston Road
Dallas, TX
1155 Dairy Ashford
Houston, TX
2701 Drexel Drive
Houston, TX
1010 Lamar Street
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
UTAH
215 South State Street
Salt Lake City, UT
VERMONT
199 Main Street
Burlington, VT
VIRGINIA
8180 Greensboro Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
511 Pine Street
Seattle, WA
WASHINGTON, DC
1775 K Street, N.W.
Washington, DC
WISCONSIN
595 North Barker Road
Brookfield, WI
TO WRITE FIDELITY

If more than one address is listed, please locate the address that is
closest to you. We'll give your correspondence immediate attention and send
you written confirmation upon completion of your request.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
100 Crosby Parkway - KP2C
Covington, KY 41015-4399
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP61
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6R
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602

INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
INVESTMENT SUB-ADVISERS
Fidelity Management & Research (U.K.) Inc.,
London, England
Fidelity Management & Research (Far East) Inc.,
Tokyo, Japan
Fidelity Investments Japan Ltd.
Fidelity International Investment Advisors
Fidelity International Investment Advisors
(U.K.) Limited
OFFICERS
Edward C. Johnson 3d, PRESIDENT
J. Gary Burkhead, SENIOR VICE PRESIDENT
Richard Hazlewood, VICE PRESIDENT, EMERGING MARKETS
Shigeki Makino, VICE PRESIDENT, JAPAN FUND, PACIFIC BASIN FUND
Patricia Satterthwaite, VICE PRESIDENT, LATIN AMERICA FUND
Thomas Sweeney, VICE PRESIDENT, CANADA FUND
Sally Walden, VICE PRESIDENT, EUROPE FUND
Arthur S. Loring, SECRETARY
Kenneth A. Rathgeber, TREASURER
Robert H. Morrison, MANAGER, SECURITY TRANSACTIONS
John H. Costello, ASSISTANT TREASURER
Leonard M. Rush, ASSISTANT TREASURER
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox *
Phyllis Burke Davis *
Richard J. Flynn *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Edward H. Malone *
Marvin L. Mann *
Gerald C. McDonough *
Thomas R. Williams *
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER SERVICING AGENT
Fidelity Service Co.
Boston, MA
* INDEPENDENT TRUSTEES
CUSTODIANS
Chase Manhattan Bank, N.A.
New York, NY
EMERGING MARKETS FUND, EUROPE FUND, EUROPE CAPITAL APPRECIATION FUND, JAPAN
FUND, PACIFIC BASIN FUND, SOUTHEAST ASIA FUND
Brown Brothers Harriman & Co.
Boston, MA
CANADA FUND, FRANCE FUND, GERMANY FUND, HONG KONG AND CHINA FUND, JAPAN
SMALL COMPANIES FUND, LATIN AMERICA FUND, NORDIC FUND, UNITED KINGDOM FUND
FIDELITY'S INTERNATIONAL EQUITY FUNDS
Canada Fund
Diversified International Fund
Emerging Markets Fund
Europe Fund
Europe Capital Appreciation Fund
France Fund
Germany Fund
Hong Kong and China Fund
International Growth and Income Fund
International Value Fund
Japan Fund
Japan Small Companies Fund
Latin America Fund
Nordic Fund
Overseas Fund
Pacific Basin Fund
Southeast Asia Fund
United Kingdom Fund
Worldwide Fund
CORPORATE HEADQUARTERS
82 Devonshire Street
Boston, MA 02109
1-800-544-8888
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
AUTOMATED LINES FOR QUICKEST SERVICE

BULK RATE
U.S. POSTAGE
P A I D
F I D E L I T Y
INVESTMENTS

(registered trademark)
P.O. Box 193
Boston, MA 02101

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

SEMIANNUAL REPORT
APRIL 30, 1996
CONTENTS

<TABLE>
<CAPTION>
<S> <C> <C>
MARKET RECAP 3 A REVIEW OF WHAT HAPPENED IN WORLD MARKETS
DURING THE LAST SIX MONTHS.

INTERNATIONAL GROWTH & INCOME FUND 4 PERFORMANCE
5 FUND TALK: THE MANAGER'S OVERVIEW
7 INVESTMENT CHANGES
8 INVESTMENTS
13 FINANCIAL STATEMENTS

DIVERSIFIED INTERNATIONAL FUND 15 PERFORMANCE
16 FUND TALK: THE MANAGER'S OVERVIEW
18 INVESTMENT CHANGES
19 INVESTMENTS
24 FINANCIAL STATEMENTS

INTERNATIONAL VALUE FUND 26 PERFORMANCE
27 FUND TALK: THE MANAGER'S OVERVIEW
29 INVESTMENT CHANGES
30 INVESTMENTS
34 FINANCIAL STATEMENTS

OVERSEAS FUND 36 PERFORMANCE
37 FUND TALK: THE MANAGER'S OVERVIEW
39 INVESTMENT CHANGES
40 INVESTMENTS
44 FINANCIAL STATEMENTS

WORLDWIDE FUND 46 PERFORMANCE
47 FUND TALK: THE MANAGER'S OVERVIEW
49 INVESTMENT CHANGES
50 INVESTMENTS
54 FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS 56 NOTES TO THE FINANCIAL STATEMENTS

</TABLE>

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL INFORMATION OF THE SHAREHOLDERS OF THE FUNDS. THIS REPORT IS
NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE FUNDS
UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY,
ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, FEDERAL
RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISKS,
INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
NEITHER THE FUNDS NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK. FOR MORE
INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES, CALL
1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST
OR SEND MONEY.
In a reversal from their mediocre performance during much of 1995, most
overseas stock markets enjoyed solid returns for the six-month period ended
April 30, 1996. Renewed economic growth, lower interest rates and
undervalued securities helped lift the Morgan Stanley Capital International
Europe, Australasia, Far East (EAFE) Index - which measures stock
performance in Europe, Australia and the Far East - to a 13.21% gain for
the period.
EUROPE: At the beginning of the period, the probability of European
monetary union under the Maastricht agreement weighed heavily on many
European exchanges. Additionally, slow economic growth and double-digit
unemployment in many European countries hurt the equity markets. However,
the markets quickly rebounded on the strength of undervalued stocks as well
as attractive cost-cutting and restructuring plans offered by several
high-profile corporations, helping the Morgan Stanley Capital International
Europe Index rise 8.54% during the period. Merger and acquisition activity
also flourished, as seen in the $30 billion mega-merger between
pharmaceutical giants Ciba-Geigy and Sandoz.
JAPAN AND THE FAR EAST: Many Asian stock markets posted strong returns in
the six months ended April 30, 1996. The Morgan Stanley Capital
International Far East ex-Japan Free Index - a measure of Far East markets
excluding Japan - rose 17.10%, reversing the negative returns that haunted
them in 1995. Malaysia, Indonesia and the Philippines all posted top
returns. Foreign capital inflows surged into Asia as investors were drawn
to undervalued large-company stocks. Construction and development also
continued to flourish in the region, symbolized by the near-completion of
the tallest buildings in the world, the Petronas towers in downtown Kuala
Lumpur, Malaysia. A weak yen, astonishingly low interest rates, a
recovering economy and a variety of undervalued stocks aided the Japanese
stock market. The Morgan Stanley Capital International Japan Index (net
dividends) soared 18.08% in U.S. dollars. The Tokyo Stock Exchange TOPIX
Total Return Index, another measure of the Japanese market, posted a
six-month return of 18.87%.
EMERGING MARKETS: Renewed interest by foreign investors also played a key
role in turning emerging markets around from last year's negative levels,
and the Morgan Stanley Capital International Emerging Markets Free Index
posted a 13.32% return during the period. In Latin America, Brazil
benefited from the recent relative stability of its currency, controlled
inflation and ample government reserves. Argentina and Peru had relatively
strong stock markets, although Peru sustained a major economic downturn and
Argentina is currently mired in a recession. While Mexican stocks posted
strong returns, economic growth there was hobbled by a weak banking sector,
large corporate debts and the collapse of real - adjusted for inflation -
wages. South African mining stocks were helped by rising gold prices
earlier in the period, although those gains were given back due to
political and economic concerns. In Eastern Europe, two of the top emerging
markets were Poland and Hungary.
U.S. AND CANADA: Although rising interest rates added to an already clouded
corporate earnings outlook in the first quarter of 1996, U.S. stocks posted
healthy returns for the past six months, as the Standard & Poor's 500 Index
finished the period up 13.76%. Investors appeared to lose their appetite
for the blue-chip, multinational firms that drove the market in 1995. This
development was due in part to a stronger dollar, surging cash flows into
mutual funds and the higher valuations of large-capitalization stocks
relative to small-capitalization stocks. The Canadian market saw several
positive events after the defeat of a referendum on Quebec's secession in
October 1995, including good growth relative to the U.S. market, the
stability of the Canadian dollar, interest rate declines and cost-cutting
by governments at both the federal and provincial level. For the six-month
period, the Toronto Stock Exchange 300 Index returned 15.25%.
BONDS: Bond markets worldwide turned in mixed results during the six months
ended April 30, 1996. In the U.S., yields rose - and prices fell - on most
fixed-income investments, as indications of a pick-up in economic growth
stirred inflation fears. Although the Federal Reserve Board lowered
short-term interest rates in January, it did not continue the easing trend
that the market had anticipated. Although some foreign markets posted solid
positive returns, the Salomon Brothers Non-U.S. World Government Bond Index
- - which tracks the performance of government bonds in 13 developed
countries excluding the U.S. - posted a -0.18% return for the six months
ended April 30, 1996. This return was influenced by interest rate increases
in the U.S., the strength of the U.S. dollar, and strong weightings in both
Germany - where the Bundesbank lowered interest rates, but not enough to
spark a significant rally - and Japan - where the recent economic rebound
created anxiety that interest rates would bounce back from low levels.
Bonds in emerging markets soundly beat their developed counterparts during
the period, with the J.P. Morgan Emerging Markets Bond Index returning
21.34% for the six months ended April 30, 1996.

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (income) and capital gains (the profits the
fund earns when it sells securities that have grown in value).
CUMULATIVE TOTAL RETURNS
PERIODS ENDED PAST 6 PAST 1 PAST 5 LIFE OF
APRIL 30, 1996 MONTH YEAR YEARS FUND
S

INTERNATIONAL GROWTH & INCOME 8.51% 11.77% 49.77% 123.42%

Morgan Stanley Capital 13.21% 11.40% 52.70% 124.70%
International EAFE Index

JP Morgan Global 0.20% 4.53% 59.70% 129.49%
Government Bond Index

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, five years, or
since the fund started on December 31, 1986. For example, if you invested
$1,000 in a fund that had a 5% return over the past year, the value of your
investment would be $1,050. You can compare the fund's returns to the
performance of the Morgan Stanley Capital International EAFE Index - a
broad measure of the performance of stocks in Europe, Australia, and the
Far East. You can also compare the fund's performance to the JP Morgan
Global Government Bond Index - a broad measure of bond performance in
developed countries, including the United States. These benchmarks include
reinvested dividends and capital gains, if any, and exclude the effects of
sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED PAST 1 PAST 5 LIFE OF
APRIL 30, 1996 YEAR YEARS FUND

INTERNATIONAL GROWTH & INCOME 11.77% 8.41% 8.99%

Morgan Stanley Capital 11.40% 8.83% 9.05%
International EAFE Index

JP Morgan Global 4.53% 9.81% 9.30%
Government Bond Index

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
IMAHDR PRASUN SHR__CHT 19960430 19960522 155634 S00000000000001
Int'l Growth & Income MS EAFE Index JP
Global Bond Index
00305 MS001 JP002
1986/12/31 10000.00 10000.00
10000.00
1987/01/31 10670.00 11091.44
10297.27
1987/02/28 11140.00 11423.38
10417.34
1987/03/31 11620.00 12359.45
10606.42
1987/04/30 12070.00 13667.22
10615.67
1987/05/31 12150.00 13667.17
10515.48
1987/06/30 12269.85 13231.74
10469.90
1987/07/31 12780.68 13208.62
10344.80
1987/08/31 13131.25 14199.03
10457.90
1987/09/30 13241.61 13975.49
10203.47
1987/10/31 10468.71 11956.28
10770.71
1987/11/30 10197.45 12135.62
11049.24
1987/12/31 10832.65 12495.97
11424.65
1988/01/31 10449.73 12719.07
11483.03
1988/02/29 10923.34 13566.88
11588.48
1988/03/31 11396.96 14401.06
11680.11
1988/04/30 11699.26 14610.33
11625.84
1988/05/31 11548.11 14141.98
11500.86
1988/06/30 11417.11 13769.22
11398.38
1988/07/31 11417.11 14201.21
11309.95
1988/08/31 10852.81 13277.87
11229.75
1988/09/30 11245.80 13858.05
11509.54
1988/10/31 11900.80 15043.77
11962.76
1988/11/30 12112.42 15939.87
12068.55
1988/12/31 12085.31 16028.75
11995.89
1989/01/31 12310.82 16310.76
11877.18
1989/02/28 12351.82 16394.60
11857.65
1989/03/31 12351.82 16072.84
11757.23
1989/04/30 12659.34 16221.91
11950.87
1989/05/31 12300.57 15339.38
11821.66
1989/06/30 12341.57 15081.17
12090.48
1989/07/31 13510.13 16974.95
12571.92
1989/08/31 13325.62 16211.52
12199.93
1989/09/30 13858.64 16949.99
12392.89
1989/10/31 13192.36 16268.98
12552.27
1989/11/30 13684.38 17086.82
12664.00
1989/12/31 14396.16 17717.27
12811.84
1990/01/31 14147.23 17058.04
12620.70
1990/02/28 13649.38 15867.48
12484.41
1990/03/31 13639.01 14214.47
12407.75
1990/04/30 13607.90 14101.66
12359.19
1990/05/31 14489.50 15710.68
12754.37
1990/06/30 14945.87 15572.31
12985.15
1990/07/31 15640.78 15791.65
13366.62
1990/08/31 14302.81 14258.15
13262.42
1990/09/30 12923.35 12271.07
13386.50
1990/10/31 14219.84 14183.13
13915.46
1990/11/30 13898.31 13346.50
14160.40
1990/12/31 13931.49 13562.71
14317.95
1991/01/31 14424.45 14001.39
14642.75
1991/02/28 15238.91 15502.33
14657.03
1991/03/31 14692.37 14571.68
14171.37
1991/04/30 14917.41 14714.78
14370.50
1991/05/31 14895.98 14868.32
14382.84
1991/06/30 14177.97 13775.78
14190.79
1991/07/31 14670.93 14452.61
14490.80
1991/08/31 14617.35 14159.11
14791.96
1991/09/30 15088.88 14957.10
15331.31
1991/10/31 14992.43 15169.13
15482.81
1991/11/30 14574.48 14460.97
15734.95
1991/12/31 15051.28 15207.78
16530.10
1992/01/31 15029.58 14882.94
16206.33
1992/02/29 15051.28 14350.25
16159.15
1992/03/31 14562.96 13402.90
16009.94
1992/04/30 15203.21 13466.61
16143.15
1992/05/31 15886.86 14368.01
16601.62
1992/06/30 15734.94 13686.50
17054.38
1992/07/31 15224.91 13336.22
17430.14
1992/08/31 15496.20 14172.68
17893.86
1992/09/30 15235.76 13892.81
17876.50
1992/10/31 14421.88 13164.07
17430.02
1992/11/30 14389.33 13287.94
17120.99
1992/12/31 14548.43 13356.67
17282.76
1993/01/31 14681.80 13355.03
17575.80
1993/02/28 15081.91 13758.44
17859.02
1993/03/31 16204.44 14957.71
18133.44
1993/04/30 17104.69 16377.23
18463.61
1993/05/31 17504.80 16723.11
18586.77
1993/06/30 17271.40 16462.20
18596.37
1993/07/31 17849.33 17038.46
18603.91
1993/08/31 18782.92 17958.25
19154.58
1993/09/30 18660.67 17554.02
19357.13
1993/10/31 19171.92 18094.99
19347.20
1993/11/30 18516.18 16513.30
19205.99
1993/12/31 19652.02 17705.68
19402.72
1994/01/31 20681.04 19202.61
19585.74
1994/02/28 20311.94 19149.42
19370.62
1994/03/31 19226.99 18324.63
19281.85
1994/04/30 19484.25 19102.13
19266.42
1994/05/31 19842.17 18992.46
19107.16
1994/06/30 19361.21 19260.86
19334.06
1994/07/31 19685.58 19446.09
19516.05
1994/08/31 19875.72 19906.48
19465.90
1994/09/30 19417.14 19279.52
19562.09
1994/10/31 19618.47 19921.52
19854.68
1994/11/30 19014.48 18964.09
19604.82
1994/12/31 19087.75 19082.84
19650.41
1995/01/31 18441.10 18349.76
20047.87
1995/02/28 18568.12 18297.10
20564.83
1995/03/31 19630.47 19438.31
21610.88
1995/04/30 19988.44 20169.36
21955.44
1995/05/31 19734.40 19928.93
22567.92
1995/06/30 19780.59 19579.44
22708.90
1995/07/31 20946.87 20798.38
22816.63
1995/08/31 20704.38 20005.00
22182.45
1995/09/30 20854.49 20395.70
22682.28
1995/10/31 20588.90 19847.46
22903.80
1995/11/30 20900.68 20399.69
23159.15
1995/12/31 21422.63 21221.60
23445.90
1996/01/31 21482.31 21308.72
23205.30
1996/02/29 21434.57 21380.76
23070.03
1996/03/31 21792.61 21834.80
23034.50
1996/04/30 22341.60 22469.61
22949.27
IMATRL PRASUN SHR__CHT 19960430 19960522 155640 R00000000000115

Let's say you invested $10,000 in Fidelity International Growth & Income
Fund on December 31, 1986, when the fund started. By April 30, 1996, the
value of your investment would have grown to $22,342 - a 123.42% increase
on your initial investment. That compares to $10,000 invested in the Morgan
Stanley Capital International EAFE Index, which would have grown to $22,470
over the same period - a 124.70% increase. If you had put $10,000 in the JP
Morgan Global Government Bond Index, it would have grown to $22,949 - a
129.49% increase.

NOTE TO SHAREHOLDERS: On March 26,1996, John Hickling (right photo)
replaced Rick Mace as manager of the fund. The following is an interview
with Rick Mace covering the period through March 26, followed by John
Hickling's outlook.
Q. HOW DID THE FUND PERFORM, RICK?
R.M. As of April 30, 1996, the fund had a total return of 8.51% for the
past six months and 11.77% for the past year. In order to evaluate
performance, we can compare the fund's return to two separate indexes,
because the fund invests in both stocks and bonds - and no single index
tracks both international stocks and bonds. For the six-month and one-year
periods, the Morgan Stanley Capital International EAFE Index - which tracks
the performance of stocks in Europe, Australia and the Far East - returned
13.21% and 11.40%, respectively. The JP Morgan Global Government Bond Index
- - which tracks the performance of government bonds in 13 developed
countries including the U.S. - returned 0.20% for six months and 4.53% for
the year.
Q. HOW DID YOU POSITION THE FUND DURING THE PERIOD?
R.M. My strategy was to use the fund's fixed income portion to generate
capital returns and income, and to make adjustments to the fund's asset
allocation as appropriate in order to provide the best risk/return profile
possible. I tilted the fund towards equities for most of the period. As you
can see from the index returns, equities solidly outperformed bonds for the
past year. Additionally, in terms of fixed income investments, I avoided
Japan. With Japanese interest rates at abysmally low levels, as well as an
overvalued bond market and an economic recovery well on its way, it just
didn't make sense to hold a large position in Japanese bonds.
Q. LOOKING AT EQUITIES, IT APPEARS YOU STILL FIND JAPAN APPEALING . . .
R.M. The fund's Japanese position is about in line with the Japanese
weighting of the EAFE index, but much larger than the average international
fund. What makes Japan so attractive is the weak yen, low interest rates, a
recovering economy and a variety of inexpensive stocks. These
characteristics made broadly based export companies such as Sony and Omron
attractive, as well as retailers - such as Ito-Yokado - and auto companies.
Q. WHY DID YOU RAISE THE FUND'S EUROPEAN EQUITY POSITION?
R.M. The increase in the European position reflected my belief in the
aggressive cost cutting of many European companies, the cheapness of
European stocks and the potential for a more robust European economy. Veba,
which provides electrical energy services in Germany; Pechiney, a French
primary aluminum and aluminum products company; Alcatel Alsthom Compagnie
Generale d'Electricite, a subsidiary of Alcatel SEL AG that manufactures
and markets telecommunications systems; and Volvo all exemplified my
reasons for raising the fund's European position.
Q. TURNING TO BONDS, HOW WOULD YOU DESCRIBE YOUR EUROPEAN POSITIONS?
R.M. During the period, I felt that any economic recovery in Europe would
take some time to develop - which would be of benefit to bonds. Therefore,
the fund made substantial investments in the United Kingdom and Germany as
these bonds had attractive yields along with room for capital appreciation.
Q. THE FUND HAS A 2% POSITION IN AN AUSTRALIAN GOVERNMENT BOND. WHAT
HAPPENED WITH THIS HOLDING?
R.M. It did very well. The Australian dollar has appreciated about 7% year
to date and interest rates have fallen. Therefore, the fund was able to
enjoy good performance along with a favorable currency translation.
Q. JOHN, WHAT CHANGES CAN INVESTORS EXPECT NOW THAT YOU ARE MANAGING THE
FUND?
J.H. I plan to use convertible securities as a portion of the fund's fixed
income portfolio. Convertible securities - which can be bonds or preferred
stock that is exchangeable for common stock at a fixed price - offer much
of the upside potential of equities with more of the downside protection
offered by bonds. Because convertibles are often issued along with a
company's stock, I will be able to leverage Fidelity's extensive worldwide
equity research capabilities. In addition, I will work with Fidelity
analysts in London who specialize in foreign convertible securities.
Q. WHAT'S YOUR OUTLOOK?
J.H. I'm optimistic. Even with the solid performance of European equities
over the past six months, I believe there is still significant potential in
the European market. I also plan to lower the fund's exposure to Japanese
equities as the weak yen has made performance somewhat mediocre in dollar
terms. Additionally - in terms of fixed income - I will look for value in
foreign corporate and government bonds.

FUND FACTS
GOAL: growth of capital and current income by
investing mainly in foreign stocks and bonds
START DATE: December 31, 1986
TRADING SYMBOL: FIGRX
SIZE: as of April 30, 1996, more than $1
billion
MANAGER: John Hickling, since March 1996;
previously managed Fidelity Advisor Annuity
Overseas Fund from January 1995-March
1996; previously managed Fidelity Overseas
Fund, Fidelity Advisor Overseas Fund, Fidelity
VIP: Overseas from 1993-March 1996; joined
Fidelity in 1982
(checkmark)
JOHN HICKLING ON HIS INVESTMENT STYLE:
"In international investing, it's hard to rigorously
apply one investing style - whether it be a value,
growth or contrarian style. For example, you find
more value stocks in emerging markets and more
growth stocks in developed markets.
"For the most part, I look for undervalued securities in
turn-around situations. In other words, when market
sentiment is extremely bad, I will buy a company if
its fundamentals indicate future growth potential. I
also always evaluate stocks on a bottom-up,
case-by case basis, with macroeconomic issues
being a secondary concern."
(solid bullet) The five-year recession in Japan took its toll on
Japanese economic growth when compared to the
rest of Asia. According to The Bank Credit Analyst,
Japan had an average annual growth rate of 2.9% a
year compared to the top rates of 9.4% for China or
9.2% for Thailand, over the 10-year period ended
1995.
(solid bullet) France was the top European market so far in 1996
with a 10.50% return in U.S. dollars, according to the
Dow Jones World Stock Index. Finland was the
region's laggard with a -0.52% return in dollar terms.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGERS
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGERS' VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
INTERNATIONAL GROWTH & INCOME
INVESTMENT CHANGES

GEOGRAPHIC DIVERSIFICATION
AS OF APRIL 30, 1996
Australia 3.4%
United States 5.9%
Row: 1, Col: 1, Value: 5.9
Row: 1, Col: 2, Value: 11.5
Row: 1, Col: 3, Value: 6.3
Row: 1, Col: 4, Value: 3.3
Row: 1, Col: 5, Value: 23.4
Row: 1, Col: 6, Value: 26.8
Row: 1, Col: 7, Value: 10.1
Row: 1, Col: 8, Value: 9.300000000000001
Row: 1, Col: 9, Value: 3.4
France 9.3%
United Kingdom 11.5%
Sweden 6.3%
Germany 10.1%
Netherlands 3.3%
Other 23.4%
Japan 26.8%
AS OF OCTOBER 31, 1995

Australia 3.6%
Canada 3.0%
Row: 1, Col: 1, Value: 19.2
Row: 1, Col: 2, Value: 10.4
Row: 1, Col: 3, Value: 11.4
Row: 1, Col: 4, Value: 39.7
Row: 1, Col: 5, Value: 6.9
Row: 1, Col: 6, Value: 5.8
Row: 1, Col: 7, Value: 3.0
Row: 1, Col: 8, Value: 3.6
United States 19.2%
France 5.8%
Germany 6.9%
United
Kingdom 10.4%
Other 11.4%
Japan 39.7%
ASSET ALLOCATION
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Stocks and equity futures 75.4 61.5

Bonds 23.9 26.4

Short-term investments 0.7 12.1

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

Mitsubishi Electric Co. Ord. 1.9 3.1
(Japan, Electrical Equipment)

Sony Corp. 1.8 1.5
(Japan, Consumer Electronics)

Nomura Securities Co. Ltd. 1.8 1.4
(Japan, Securities Industry)

Hitachi Ltd. 1.6 4.4
(Japan, Electronics)

Canon, Inc. 1.4 1.8
(Japan, Computers & Office Equipment)

Peugeot SA Ord. 1.3 0.0
(France, Automotive)

Omron Corp. 1.3 5.0
(Japan, Electrical Equipment)

AKZO NV 1.2 0.2
(Netherlands, Chemical)

Pechiney SA Class A 1.2 0.2
(France, Metals & Mining)

Volvo AB Class B 1.2 0.5
(Sweden, Automotive)

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

Durables 12.1 4.6

Basic Industries 10.5 6.6

Finance 10.2 3.1

Industrial Machinery & Equipment 8.6 10.5

Utilities 7.5 2.8

Technology 7.0 14.5

Energy 5.5 5.1

Retail & Wholesale 4.1 4.0

Nondurables 2.2 0.3

Construction & Real Estate 2.1 0.0

INTERNATIONAL GROWTH & INCOME
INVESTMENTS APRIL 30, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 74.0%
SHARES VALUE (NOTE 1)
ARGENTINA - 0.8%
Disco SA sponsored ADR (a) 190,000 $ 3,016,250
YPF Sociedad Anonima sponsored ADR
representing Class D shares 241,000 5,271,875
8,288,125
AUSTRALIA - 1.4%
Fosters Brewing Group Ltd. 2,195,000 4,026,272
MIM Holdings 1,309,000 1,937,359
QNI Ltd. 1,765,400 4,377,905
Western Mining Holdings Ltd. 500,000 3,652,840
13,994,376
AUSTRIA - 0.7%
EVN (Energie-Versor Nieder) 34,680 5,068,999
Mayr Melnhof Karton AG 50,000 2,292,237
7,361,236
BELGIUM - 1.0%
Bekaert SA 6,960 5,382,356
Delhaize Freres & Cie Le Lion SA 50,000 2,471,785
Glaverbel SA 16,750 1,863,774
9,717,915
BRAZIL - 0.9%
Brahma (Cia Cervejaria) PN Class B
(Pfd. Reg.) 5,350,000 2,572,660
Telebras sponsored ADR 40,000 2,165,000
Telebras PN (Pfd. Reg.) 42,000,000 2,273,704
Telesp PN (Pfd. Reg.) 11,200,000 1,998,488
9,009,852
CANADA - 0.6%
AT Plastics, Inc. 74,900 764,370
Canada Occidental Petroleum Ltd. 46,500 1,604,567
Inco Ltd. 51,600 1,742,667
Intertape Polymer Group, Inc. 42,800 1,822,547
Viridian, Inc. 2,000 27,165
5,961,316
CHINA (PEOPLES REPUBLIC) - 0.2%
Maanshan Iron & Steel Co. Ltd.
Class H 13,000,000 1,932,598
DENMARK - 0.9%
International Service Systems AS,
Series B 100,000 2,828,591
Novo-Nordisk AS Class B 25,000 3,247,798
Unidanmark AS Class A 60,000 2,672,764
8,749,153
FINLAND - 2.3%
Huhtamaki Ord. 204,100 6,746,341
Kemira OY 199,800 1,919,348
Nokia Corp. AB, Series A 180,000 6,429,435
Valmet OY Class A 538,900 7,459,132
22,554,256
FRANCE - 6.7%
Accor SA 7,682 1,066,449
Alcatel Alsthom Cie Generale
d'Electricite SA 102,900 9,669,258
Axime SA Ex Segin (a)(b) 30,000 3,694,896
Eramet SA 12,000 915,081
Eramet SA (b) 8,000 610,054
Michelin SA (Compagnie Generale des
Etablissements) Class B 200,000 9,903,326

SHARES VALUE (NOTE 1)
Pechiney SA Class A 250,000 $ 11,770,108
Peugeot SA Ord. 95,000 13,261,794
Paribas SA (Cie Financiere) Class A 50,000 3,213,457
Seita 30,000 1,154,292
Total SA sponsored ADR 320,000 10,960,000
66,218,715
GERMANY - 4.4%
Bayerische Hypotheken-und
Wechselbank AG 200,000 4,972,091
Continental Gummi-Werke AG 150,000 2,590,175
Daimler-Benz AG Ord. 13,000 7,116,370
Deutsche Bank AG 70,000 3,352,962
Hornbach Baumarket AG (Bearer) 68,400 2,589,979
Karstadt AG 3,000 1,119,896
Munich Reinsurance AG (Reg.) 2,500 4,537,294
Siemens AG 9,000 4,925,543
Veba AG Ord. 230,000 11,426,799
Volkswagen AG 3,000 1,035,091
43,666,200
GREECE - 0.2%
OTE SA (a)(b) 140,000 2,351,540
HONG KONG - 2.9%
Hong Kong & China Gas Co. Ltd. 3,165,600 5,197,089
Hong Kong & China Gas Co. Ltd.
(warrants) (a) 263,800 -
Hong Kong Telecommunications Ltd. 2,598,000 4,936,200
Hong Kong Electric Holdings Ord. 1,530,000 4,865,494
Johnson Electric Holdings Ltd. 2,350,000 5,316,261
Peregrine Investments Holdings Ltd. 43,000 66,426
Sun Hung Kai & Co. Ltd. 1,000 307
Television Broadcast Ltd. Ord. 2,056,000 8,239,203
28,620,980
INDONESIA - 1.3%
Astra International PT (For. Reg.) 3,591,000 5,320,571
Bank International Indonesia PT
(For. Reg.) 500,000 2,464,033
Inti Indorayon Utama PT (For. Reg.) 1,568,000 1,936,010
Indah Kiat Pulp & Paper (For. Reg.) 2,847,500 2,965,509
12,686,123
ITALY - 0.9%
Fiat Spa 1,500,000 5,103,975
Italcementi Fabbriche Ruinite
Cemento Spa 50,000 363,124
Stet (Societa Finanziaria Telefonica)
Spa Ord. 600,000 2,025,838
Telecom Italia Spa 310,000 630,432
Telecom Italia Mobile Spa (a) 310,000 680,056
8,803,425
JAPAN - 26.5%
Acom Co. Ltd. 95,000 3,568,542
Akita Bank Ltd. 278,000 2,062,099
Amway Japan Ltd. 38,400 1,968,294
Aoyama Trading Co. Ord. 85,200 2,665,665
Bank of Tokyo-Mitsubishi Ltd. 102,400 2,356,597
Bridgestone Corp. 100,000 1,844,896
Canon, Inc. 700,000 13,846,227
Dai-Ichi Kangyo Bank 100,000 2,025,581
Dai-Tokyo Fire & Marine Insurance Ord. 104,000 812,971
Daiwa House Industry Co. Ltd. 200,000 3,176,264
Daiwa Securities Co. Ltd. 200,000 3,062,146
Daito Trust Construction 100,000 1,474,015
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
JAPAN - CONTINUED
Eighteenth Bank 100,000 $ 989,016
Fuji Photo Film Co. Ltd. 300,000 9,300,556
Fuji Electric Co. Ltd. 594,000 3,423,175
Higashi Nihon House Co. Ltd. 100,000 1,616,661
Hitachi Koki Co. Ltd. Ord. 100,000 1,055,585
Hitachi Ltd. 1,510,000 16,226,522
Hitachi Maxell Ltd. 200,000 4,298,417
Honda Motor Co. Ltd. 250,000 5,682,088
Hoya Corp. 52,000 1,829,680
Ito-Yokado Co. Ltd. 37,000 2,170,986
Jusco Co. Ltd. 129,000 3,974,704
Kobe Steel Ltd. Ord. (a) 1,200,000 3,708,811
Komatsu Ltd. Ord. 744,000 7,146,022
Konica Corp. 147,000 1,146,308
Makita Corp. 81,000 1,301,793
Matsushita Electric Industrial Co. Ltd. 600,000 10,555,846
Mazda Motor Corp. 1,206,000 5,814,673
Mitsubishi Electric Co. Ord. 2,380,000 18,649,802
Mitsubishi Trust & Banking Corp. 140,000 2,409,776
Mitsui Trust and Banking Co. Ltd. 190,000 2,276,639
NKK Corp. (a) 1,000,000 3,119,205
Namco Ltd. 98,000 3,224,573
National House Industrial Co. Ltd. 55,000 967,619
Nifco, Inc. 5,200 72,693
Nippon Shokubai Co. Ltd. 400,000 4,336,456
Nissan Motor Co. Ltd. Ord. 101,000 849,070
Nitto Denko Corp. 200,000 3,214,303
Nomura Securities Co. Ltd. 800,000 17,345,822
Nichicon Corp. 280,000 4,633,160
Nichiei Co. Ltd. 14,000 931,958
Omron Corp. 579,000 12,994,532
Promise Co. Ltd. 22,000 931,007
Ricoh Co. Ltd. Ord. 250,000 2,924,255
Rohm Co. Ltd. 20,000 1,266,701
Sakura Bank Ltd. 300,000 3,509,105
Sankyo Co. Ltd. 25,000 603,870
Sekisui House Ltd. 300,000 3,708,811
Sekisui Chemical Co. Ltd. 450,000 5,648,804
Shimamura Corp. 45,000 2,015,596
Shin-Etsu Chemical Co. Ltd. 52,500 1,143,312
Sony Corp. 270,000 17,459,940
Sumitomo Trust & Banking Co. Ltd. 188,000 2,735,391
Takeda Chemical Industries Ltd. 335,000 5,766,250
Toyota Motor Corp. 200,000 4,545,671
Tostem Corp. 32,000 989,016
Uny Co. Ltd. 300,000 5,791,451
Wako Electric Co. Ltd. 60,000 1,169,702
Yamanouchi Pharmaceutical Co. Ltd. 250,000 5,896,058
Yoshinoya D&C Co. Ltd. Ord. 50 708,478
260,943,166
MALAYSIA - 0.8%
Hong Leong Credit BHD 562,000 2,794,786
Tenega Nasional BHD 1,000 4,251
TA Enterprise BHD 3,142,000 5,418,328
8,217,365
MEXICO - 0.6%
Grupo Financiero Bancomer Class B (a) 12,200,000 5,429,534
Telefonos de Mexico SA sponsored ADR
representing shares Ord. Class L 1,000 34,000
5,463,534

SHARES VALUE (NOTE 1)
NETHERLANDS - 3.3%
AKZO NV 105,300 $ 12,229,180
KLM Royal Dutch Air Lines NV 40,975 1,375,000
Philips Electronics NV (Bearer) 67,000 2,365,626
Royal Dutch Petroleum Co.:
ADR (NY Reg.) 33,200 4,755,900
Ord. 40,000 5,698,278
Royal Ptt Nederland NV 120,000 4,503,064
Vendex International NV 10,900 312,337
Vendex International NV (a)(b) 57,000 1,633,324
32,872,709
NETHERLANDS ANTILLES - 0.4%
Schlumberger Ltd. 40,000 3,530,000
NORWAY - 1.4%
Den Norske Bank Class A Free shares 200,000 574,988
Netcom ASA (b) 140,000 1,937,923
Norsk Hydro AS ADR 10,000 460,000
Smedvig AS 76,800 1,886,691
Saga Petroleum AS Class B 138,000 1,868,255
Transocean Drilling AS (a) 250,000 6,997,209
13,725,066
PHILIPPINES - 0.7%
Guoco Holdings Philippines, Inc. 645,000 152,925
Megaworld Properties &
Holdings, Inc. (a) 8,875,000 6,363,528
6,516,453
RUSSIA - 0.1%
Mosenergo AO sponsored ADR (b) 51,000 612,000
SINGAPORE - 0.2%
Kim Engineering Holdings Ltd. 20,000 20,768
Sembawang Shipyard Ltd. 376,000 1,952,205
1,972,973
SOUTH AFRICA - 0.4%
Anglo American Corp. of South Africa
Ltd. (Reg.) 20,000 1,353,349
Driefontein Consolidated Ltd.:
ADR 42,500 674,688
Ord. 75,500 1,203,118
Free State Consolidated Gold Mines
Ltd. Ord. 25,578 283,544
Western Deep Levels Ltd. Ord. 14,700 736,697
4,251,396
SPAIN - 1.5%
Banco Bilbao Vizcaya SA Ord. (Reg.) 50,000 1,898,610
Banco de Santander SA Ord. (Reg.) 50,000 2,320,741
FOCSA (Fomento Construcciones y
Contratas SA) 10,000 852,117
Iberdrola SA 550,000 5,377,759
Tabacalera SA, Series A 90,000 4,099,584
Telefonica de Espana SA Ord. 5,000 88,942
14,637,753
SWEDEN - 5.2%
Autoliv AB 100,000 5,447,144
Electrolux AB 88,600 4,460,946
Esselte AB Class B Free shares 139,000 2,783,049
Mo Och Domsjoe AB Class B 140,000 7,440,505
Nordictel Holding AB 112,200 1,503,147
SKF AB Ord. 210,000 4,884,763
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
SWEDEN - CONTINUED
Scania AB:
Class A (a) 33,000 $ 913,354
Class B (a) 33,000 910,924
Svenska Cellulosa Aktiebolaget (SCA)
Class B Ord. 375,000 7,066,566
Svedala Industri Free shares 50,000 1,788,724
Swedish Match AB (a)(h) 181,300 467,093
Volvo AB:
ADR Class B 100,000 2,275,000
Class B 500,000 11,446,364
51,387,579
SWITZERLAND - 1.2%
Kuoni Reisen Holding AG Class B (Reg.) 915 1,838,088
Nestle SA (Reg.) 1,400 1,553,556
SIG AG (Reg.) 2,500 2,832,463
Surveillance, Societe Generale (Bearer) 2,400 5,399,759
11,623,866
UNITED KINGDOM - 6.2%
Argyll Group PLC Ord. 1,000,000 5,004,236
BAA PLC Ord. 600,000 4,937,915
Bass PLC Ord. 180,000 2,125,745
British Petroleum PLC Ord. 1,028,865 9,297,095
British Telecommunications PLC Ord. 930,000 5,109,521
Cable & Wireless PLC Ord. 680,000 5,345,187
Caradon PLC 803,700 2,786,259
Cookson Group PLC 2,000,000 9,526,136
East Midland Electricity PLC 300,000 2,832,970
Northern Electricity PLC 330,000 3,258,029
Nichols (Harvey) Group PLC (b) 330,000 1,601,657
Shanks & McEwan Group PLC 500,000 783,796
Shell Transport & Trading PLC 40,000 528,459
Smith (W.H.) Group PLC Ord. 400,000 2,972,396
Telegraph (The) PLC 300,000 2,509,655
Tomkins PLC Ord. 200,000 826,000
WPP Group PLC 33,200 101,836
Wessex Water Ord. 275,000 1,390,673
60,937,565
UNITED STATES OF AMERICA - 0.3%
Aluminum Co. of America 38,700 2,413,913
Reynolds Metals Co. 10,800 580,500
2,994,413
TOTAL COMMON STOCKS
(Cost $653,204,507) 729,601,648
PREFERRED STOCKS - 1.4%
CONVERTIBLE PREFERRED STOCKS - 0.2%
JAPAN - 0.2%
AJL PEPS Trust exchangeable 117,100 2,605,475
NONCONVERTIBLE PREFERRED STOCKS - 1.2%
AUSTRIA - 0.3%
Creditanstalt Bankverein 50,000 2,788,734
GERMANY - 0.8%
Porsche AG (a) 1,000 546,434
Volkswagen AG 4% 17,000 4,317,284
Wella AG 6,000 2,624,449
7,488,167

SHARES VALUE (NOTE 1)
ITALY - 0.1%
Fiat SPA 1,000 $ 1,813
Italmobiliare Spa 90,000 746,521
Stet (Societa Finanziaria Telefonica) Spa 225,000 589,109
1,337,443
TOTAL NONCONVERTIBLE PREFERRED STOCKS 11,614,344
TOTAL PREFERRED STOCKS
(Cost $14,599,027) 14,219,819
CONVERTIBLE BONDS - 1.1%
MOODY'S PRINCIPAL
RATINGS (G) AMOUNT (D)
BERMUDA - 0.7%
MBL International Finance of
Bermuda 3%, 11/30/02 Aa3 $ 5,500,000 6,352,500
CANADA - 0.2%
Horsham Corp.
3%, 1/29/21 - 2,000,000 2,090,000
JAPAN - 0.1%
Matsushita Electric Works Co.
Ltd. 2.70%, 5/31/02 - JPY 81,000,000 977,500
UNITED STATES OF AMERICA - 0.1%
Unisys Corp. 8 1/4%,
3/15/06 B3 937,000 1,030,700
TOTAL CORPORATE BONDS
(Cost $10,360,254) 10,450,700
GOVERNMENT OBLIGATIONS (F) - 22.8%
ARGENTINA - 0.0%
Province of Chaco
11 7/8%, 9/10/97 (c) - 150,000 162,116
AUSTRALIA - 2.0%
Commonwealth of Australia
8 3/4%, 1/15/01 Aaa AUD 24,600,000 19,635,542
DENMARK - 0.5%
Danish Government Bullet
8%, 5/15/03 Aaa DKK 29,000,000 5,250,356
FRANCE - 2.6%
French Government:
8 1/2%, 12/26/12 Aaa FRF 34,000,000 7,665,777
OAT:
8 1/2%, 11/25/02 Aaa FRF 25,000,000 5,503,674
7 1/4%, 4/25/06 Aaa FRF 20,000,000 4,104,022
6%, 10/25/25 Aaa FRF 35,000,000 5,760,924
Principal Strips 0%,
10/25/25 Aaa FRF 110,000,000 2,306,214
25,340,611
GERMANY - 4.9%
Federal Republic of Germany:
8%, 7/22/02 Aaa DEM 9,300,000 6,782,458
6%, 6/20/16 Aaa DEM 32,600,000 19,005,586
GOVERNMENT OBLIGATIONS (F) - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS AMOUNT (C) (NOTE 1)
GERMANY - CONTINUED
Treuhandanstalt:
6 5/8%, 7/9/03 AAA DEM 12,200,000 $ 8,241,919
7 1/2%, 9/9/04 Aaa DEM 20,000,000 14,094,989
48,124,952
ITALY - 1.5%
Republic of Italy:
8 1/2%, 4/1/99 (e) A1 ITL 15,600,000 9,936,014
10 1/2%, 9/1/05 (e) A1 ITL 8,000,000 5,393,528
15,329,542
NEW ZEALAND - 0.1%
New Zealand Government
9%, 11/15/96 Aaa NZD 1,500,000 1,027,410
SWEDEN - 1.1%
Swedish Government
13%, 6/15/01 Aa1 SEK 60,000,000 10,819,795
UNITED KINGDOM - 5.3%
United Kingdom, Great Britain &
Northern Ireland:
9 1/2%, 1/15/99 Aaa GBP 4,500,000 7,191,941
9 3/4%, 8/27/02 Aaa GBP 13,100,000 21,695,511
6 3/4%, 11/26/04 Aaa GBP 5,500,000 7,665,798
7 3/4%, 9/8/06 Aaa GBP 5,100,000 7,511,865
9%, 10/13/08 Aaa GBP 2,200,000 3,537,822
8 3/4%, 8/25/17 Aaa GBP 3,000,000 4,716,907
52,319,844
UNITED STATES OF AMERICA - 4.8%
U.S. Treasury Obligations:
6 1/2%, 5/15/97 Aaa 7,820,000 7,879,901
8 1/2%, 5/15/97 Aaa 7,535,000 7,743,418
9 1/4%, 8/15/98 Aaa 7,385,000 7,870,785
9 1/8%, 5/15/99 Aaa 7,400,000 7,978,088
7 3/4%, 12/31/99 Aaa 7,550,000 7,892,091
7 1/4%, 2/15/23 Aaa 750,000 754,455
6 1/4%, 8/15/23 Aaa 830,000 748,552
7 1/2%, 11/15/24 Aaa 1,570,000 1,657,088
7 5/8%, 2/15/25 Aaa 2,750,000 2,951,960
6 7/8%, 8/15/25 Aaa 1,860,000 1,836,750
47,313,088
TOTAL GOVERNMENT OBLIGATIONS
(Cost $226,498,625) 225,323,256
REPURCHASE AGREEMENTS - 0.7%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.33%, dated
4/30/96 due 5/1/96 $ 6,895,021 6,894,000
TOTAL INVESTMENTS IN SECURITIES - 100%
(Cost $911,556,413) $ 986,489,423
CURRENCY ABBREVIATIONS
AUD - Australian dollar
GBP - British pound
DKK - Danish krone
FRF - French franc
DEM - German deutsche mark
ITL - Italian lira
JPY - Japanese yen
NZD - New Zealand dollar
SEK - Swedish krona
LEGEND
(a) Non-income producing
(b) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $12,441,394 or 1.2% of net
assets.
(c) Restricted securities - investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on each holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
Province of Chaco
11 7/8%, 9/10/97 3/9/94 $ 156,300
(d) Principal amount is stated in United States dollars unless otherwise
noted.
(e) Principal amount in thousands.
(f) Some foreign government obligations have not been individually rated by
S&P or Moody's. The ratings listed are assigned to securities by FMR, the
fund's investment adviser, based principally on S&P and Moody's ratings of
the sovereign credit of the issuing government.
(g) Standard & Poor's credit ratings are used in the absence of a rating by
Moody's Investors Service, Inc.
(h) Security purchased on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 22.6% AAA, AA, A 23.5%
Baa 0.0% BBB 0.0%
Ba 0.0% BB 0.0%
B 0.1% B 0.1%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
For some foreign government obligations, FMR has assigned the ratings of
the sovereign credit of the issuing government. The percentage not rated by
either S&P or Moody's amounted to 0.3%.
Purchases and sales of securities, other than short-term securities,
aggregated $610,094,476 and $449,330,801, respectively, of which U.S.
government and government agency obligations aggregated $17,590,265 and
$17,188,681, respectively.
At the end of the period, restricted securities (excluding 144A issues)
amounted to $162,116 or 0.02% of net assets (see Note 2 of Notes to
Financial Statements).
The fund placed a portion of its portfolio transactions with brokerage
firms which are affiliates of FMR. The commissions paid to these affiliated
firms were $55,506 for the period (see Note 5 of Notes to Financial
Statements).
INCOME TAX INFORMATION
At April 30, 1996, the aggregate cost of investment securities for income
tax purposes was $912,031,155. Net unrealized appreciation aggregated
$74,458,268, of which $88,789,492 related to appreciated investment
securities and $14,331,224 related to depreciated investment securities.
At October 31, 1995 the fund had a capital loss carryforward of
approximately $23,289,000 all of which will expire on October 31, 2003.
At October 31, 1995, the fund was required to defer $563,000 of losses on
futures contracts and options.
INDUSTRY DIVERSIFICATION
As a Percentage of Total Value of Investment in Securities
Basic Industries 10.5%
Conglomerates 0.1
Construction & Real Estate 2.1
Durables 12.1
Energy 5.5
Finance 10.2
Government Obligations 22.8
Health 1.8
Holding Companies 0.7
Industrial Machinery & Equipment 8.6
Media & Leisure 1.8
Nondurables 2.2
Precious Metals 0.8
Repurchase Agreements 0.7
Retail & Wholesale 4.1
Services 0.6
Technology 7.0
Transportation 0.9
Utilities 7.5
100.0%
INTERATIONAL GROWTH & INCOME
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996 (UNAUDITED)

ASSETS

Investment in $ 986,489,423
securities, at
value
(including
repurchase
agreements
of
$6,894,000)
(cost
$911,556,413
) - See
accompanyin
g schedule

Cash 446

Receivable for 26,452,020
investments
sold

Receivable for 3,440,216
fund shares
sold

Dividends 3,367,309
receivable

Interest 7,835,497
receivable

TOTAL ASSETS 1,027,584,911

LIABILITIES

Payable for $ 12,604,499
investments
purchased
Regular
delivery

Delayed 578,188
delivery

Payable for 2,413,525
fund shares
redeemed

Accrued 630,133
management
fee

Other payables 436,736
and
accrued
expenses

TOTAL 16,663,081
LIABILITIES

NET ASSETS $ 1,010,921,830

Net Assets
consist of:

Paid in $ 914,656,914
capital

Undistributed 6,446,599
net
investment
income

Accumulated 15,051,873
undistributed
net
realized
gain (loss) on
investment
s and foreign

currency
transactions

Net 74,766,444
unrealized
appreciation
(depreciati
on) on
investments
and assets
and liabilities
in
foreign
currencies

NET ASSETS, for $ 1,010,921,830
54,014,940
shares
outstanding

NET ASSET $18.72
VALUE,
offering price

and
redemption
price per
share
($1,010,921,
830 (divided by)
54,014,940
shares)

STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)

INVESTMENT $ 5,887,738
INCOME
Dividends

Interest 12,890,598

18,778,336

Less foreign (724,269
taxes )
withheld

TOTAL 18,054,067
INCOME

EXPENSES

Management $ 3,627,453
fee

Transfer agent 1,373,512
fees

Accounting 256,726
fees and
expenses

Non-interested 1,878
trustees'
compensatio
n

Custodian fees 178,867
and
expenses

Registration 36,118
fees

Audit 25,651

Legal 4,175

Miscellaneous 8,793

Total 5,513,173
expenses
before
reductions

Expense (101,573 5,411,600
reductions )

NET 12,642,467
INVESTMENT
INCOME

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

Investment 29,661,532
securities

Foreign (40,882
currency )
transactions

Futures 9,384,170 39,004,820
contracts

Change in net
unrealized
appreciation
(depreciation
) on:

Investment 26,363,043
securities

Assets and (238,660
liabilities in )
foreign
currencies

Futures 162,651 26,287,034
contracts

NET GAIN (LOSS) 65,291,854

NET INCREASE $ 77,934,321
(DECREASE)
IN NET ASSETS
RESULTING
FROM
OPERATIONS

OTHER
INFORMATION

Accounting $ 255,438
fees paid to
FSC

Expense $ 61,835
reductions
Directed
brokerage
arrangements

Custodian 1,897
interest
credits

Transfer 37,841
agent interest
credits

$ 101,573

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS SIX MONTHS YEAR ENDED
ENDED OCTOBER 31,
APRIL 30, 1996 1995
(UNAUDITED)

Operations $ 12,642,467 $ 30,974,801
Net
investment
income

Net realized 39,004,820 (23,050,406)
gain (loss)

Change in 26,287,034 21,918,171
net
unrealized
appreciation
(depreciation
)

NET INCREASE 77,934,321 29,842,566
(DECREASE)
IN NET
ASSETS
RESULTING
FROM
OPERATIONS

Distributions to (20,376,247) (16,097,075)
shareholders
From net
investment
income

In excess of (9,877,667) -
net
investment
income

From net - (24,102,957)
realized gain

TOTAL (30,253,914) (40,200,032)
DISTRIBUTION
S

Share 431,379,428 548,686,974
transactions
Net proceeds
from sales of
shares

Reinvestmen 29,614,550 39,646,248
t of
distributions

Cost of (400,987,764) (1,042,678,966)
shares
redeemed

NET INCREASE 60,006,214 (454,345,744)
(DECREASE)
IN NET
ASSETS
RESULTING
FROM SHARE
TRANSACTIO
NS

TOTAL 107,686,621 (464,703,210)
INCREASE
(DECREASE)
IN NET ASSETS

NET ASSETS

Beginning of 903,235,209 1,367,938,419
period

End of period $ 1,010,921,830 $ 903,235,209
(including
undistribute
d net
investment
income of
$6,446,599
and
$24,058,04
6,
respectivel
y)

OTHER
INFORMATION
Shares

Sold 23,859,961 32,087,835

Issued in 1,655,387 2,423,206
reinvestment
of
distributions

Redeemed (22,167,151) (61,852,870)

Net increase 3,348,197 (27,341,829)
(decrease)

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

</TABLE>

FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED OCTOBER 31,
ENDED
APRIL 30, 1996

SELECTED PER-SHARE DATA UNAUDITED 1995 1994 G 1993 1992 1991

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Net asset $ 17.83 $ 17.54 $ 17.25 $ 13.29 $ 13.99 $ 13.71
value,
beginning of
period

Income from .24 .54 .38 D .14 D .31 .30 I
Investment
Operations
Net
investment
income

Net realized 1.25 .28 F .02 4.14 (.84) .41
and
unrealized
gain (loss)

Total from 1.49 .82 .40 4.28 (.53) .71
investment
operations

Less (.40) (.21) (.03) (.31) (.16) (.38)
Distributions
From net
investment
income

In excess of (.20) - - - - -
net
investment
income

From net - (.32) (.05) (.01) E (.01) E (.05) E
realized gain

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

Total (.60) (.53) (.11) (.32) (.17) (.43)
distributions

Net asset $ 18.72 $ 17.83 $ 17.54 $ 17.25 $ 13.29 $ 13.99
value, end of
period

TOTAL RETURN B, 8.51% 4.95% 2.33% 32.94% (3.81)% 5.43%
C

RATIOS AND
SUPPLEMENT
AL DATA

Net assets, $ 1,010,922 $ 903,235 $ 1,367,938 $ 1,002,847 $ 60,007 $ 49,738
end of period
(000 omitted)

Ratio of 1.17% A 1.18% 1.21% 1.52% 1.62% 1.89%
expenses to
average net
assets

Ratio of 1.15% A, 1.18% 1.21% 1.52% 1.62% 1.89%
expenses to H
average net
assets after
expense
reductions

Ratio of net 2.68% A 2.98% 2.16% .87% 2.78% 2.86%
investment
income to
average net
assets

Portfolio 135% A 141% 173% 24% 76% 117%
turnover rate

Average $ .0058
commission
rate J

</TABLE>

<TABLE>
<CAPTION>
<S><C>
B ANNUALIZED C TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE
NOT ANNUALIZED. D THE TOTAL
RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN
(SEE NOTE 7 OF NOTES TO FINANCIAL STATEMENTS). E NET INVESTMENT
INCOME PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
F INCLUDES AMOUNTS DISTRIBUTED
FROM NET REALIZED GAINS ON FOREIGN CURRENCY RELATED TRANSACTIONS
TAXABLE AS ORDINARY INCOME. G 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.
H EFFECTIVE NOVEMBER 1, 1993,
THE FUND ADOPTED STATEMENT OF POSITION 93-2, "DETERMINATION,
DISCLOSURE, AND FINANCIAL STATEMENT
PRESENTATION OF INCOME, CAPITAL GAIN, AND RETURN OF CAPITAL
DISTRIBUTIONS BY INVESTMENT
COMPANIES." AS A RESULT, NET INVESTMENT INCOME PER SHARE MAY
REFLECT CERTAIN RECLASSIFICATIONS
RELATED TO BOOK TO TAX DIFFERENCES. I FMR OR THE FUND HAS ENTERED INTO
VARYING ARRANGEMENTS WITH
THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S
EXPENSES (SEE NOTE 7 OF NOTES TO
FINANCIAL STATEMENTS). J INCLUDES $.02 PER SHARE FROM RECOVERY OF
FOREIGN TAXES PREVIOUSLY WITHHELD
ON DIVIDEND AND INTEREST PAYMENTS. K FOR FISCAL YEARS BEGINNING ON OR
AFTER SEPTEMBER 1, 1995, A
FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE
FOR SECURITY TRADES ON WHICH
COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD
AND FUND TO FUND DEPENDING
ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING
PRACTICES AND COMMISSION RATE
STRUCTURES MAY DIFFER.

</TABLE>

DIVERSIFIED INTERNATIONAL
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (income) and capital gains (the profits the
fund earns when it sells securities that have grown in value). If Fidelity
had not reimbursed certain fund expenses, the fund's life of fund figure
would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED PAST 6 PAST 1 LIFE OF
APRIL 30, 1996 MONTHS YEAR FUND

DIVERSIFIED INTERNATIONAL 14.04% 23.03% 53.91%

Morgan Stanley Capital 13.00% 10.99% 57.69%
International GDP-weighted
EAFE Index

International Funds Average 11.95% 15.95% n/a

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year or since the fund
started on December 27, 1991. For example, if you invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment would
be $1,050. You can compare the fund's returns to the performance of the
Morgan Stanley Capital International GDP-weighted EAFE Index - a broad
measure of the performance of stocks in Europe, Australia, and the Far
East, weighted by each country's gross domestic product. To measure how the
fund's performance stacked up against its peers, you can compare it to the
international funds average, which reflects the performance of 316 funds
with similar objectives tracked by Lipper Analytical Services over the past
six months. These benchmarks include reinvested dividends and capital
gains, if any, and exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED PAST 1 LIFE OF
APRIL 30, 1996 YEAR FUND

DIVERSIFIED INTERNATIONAL 23.03% 10.43%

Morgan Stanley Capital 10.99% 11.04%
International GDP-weighted
EAFE Index

International Funds Average 15.95% n/a

Let's say you invested $10,000 in Fidelity Diversified International Fund
on December 27, 1991, when the fund started. By April 30, 1996, the value
of your investment would have grown to $15,391 - a 53.91% increase on your
initial investment. That compares to $10,000 invested in the Morgan Stanley
Capital International GDP-weighted EAFE Index, which would have grown to
$15,769 over the same period - a 57.69% increase.

An interview with Greg Fraser, Portfolio Manager of Fidelity Diversified
International Fund
Q. HOW DID THE FUND PERFORM, GREG?
A. For the six and 12 months ended April 30, 1996, the fund returned 14.04%
and 23.03%, respectively, while the international funds average returned
11.95% and 15.95% for the same time periods according to Lipper Analytical
Services. The Morgan Stanley Capital International GDP-weighted EAFE Index,
a broad measure of stock performance in Europe, Australia and the Far East,
was up 13.00% for the six month period and 10.99% for the 12-month period.
Q. WHAT FACTORS CONTRIBUTED TO THE FUND'S PERFORMANCE?
A. While the fund differed significantly from the country weighting of the
EAFE Index for a variety of countries, taken as a whole, the choice of
countries appears to have had only modest impact on the fund during the
period. Good stock selection helped the fund outperform the market.
Q. WHICH STOCKS OR INDUSTRIES PARTICULARLY HELPED THE FUND?
A. European chemical and pharmaceutical companies - such as Bayer and
Hoechst in Germany, and Sandoz and Ciba-Geigy in Switzerland - were
particularly strong performers. Share prices of Sandoz and Ciba-Geigy
appreciated dramatically after a merger was announced, because of the
possibility of large earnings gains arising from cost cutting. While the
fund owned these stocks because of their reasonable valuations and earnings
expectations, it still benefited from the merger news. In the case of the
German companies, investors appeared to begin to give more importance to
the pharmaceutical portion of these companies' earnings and to notice that
their valuations and earnings growth were quite impressive.
Q. HOW DID THE GENERAL STRENGTHENING OF THE U.S. DOLLAR AFFECT THE FUND?
A. As I've noted before, when the dollar changes value, it affects the fund
in several ways. First, there is an immediate translation impact. For
instance, if the dollar is strong, the foreign stocks the fund holds are
immediately worth fewer dollars - assuming the underlying stock prices
don't change in local currencies. Often, the local share prices do rise
because investors anticipate that exports will increase and earnings growth
will improve the longer-term earnings prospects for the companies in
countries with cheaper currencies. During this period, rising share prices
largely offset the strength in the dollar, and shareholders earned positive
dollar-based returns.
Q. WHY DID THE FUND'S HOLDINGS IN JAPANESE STOCKS FALL FROM ABOUT 30% OF
INVESTMENTS SIX MONTHS AGO TO ABOUT 19% OF INVESTMENTS ON APRIL 30?
A. As our long-term shareholders know, I use two types of computer models
to help the fund choose countries and stocks: top-down country selection
models and bottom-up stock selection models. The country selection models
use a variety of factors, such as interest and inflation rates, valuations,
recent market performance and changing currency values. During the period,
these models were more or less neutral on Japan. The weightings declined
due to the bottom-up stock selection models. Most notably, positions in
Japanese technology stocks were trimmed. Here, the models found that the
earnings estimates were not behaving as well as they had been earlier in
the year. Also, the models took note of the weakening price performance of
some of these stocks. Finally, after the stocks had risen substantially,
their valuations just were not as compelling. In summary, the fund's
holdings in Japan were meaningfully reduced because of the weakening stock
price and estimated performance and because the bottom-up models saw less
attractive valuations.
Q. WHY DOES THE FUND HAVE SUCH LARGE WEIGHTINGS IN SCANDINAVIA?
A. In total, the fund has about 12% of its investments in Sweden, Norway,
Finland and Denmark compared with about 10% in October, 1995. The bottom-up
models used consensus data to uncover reasonable earnings growth combined
with very reasonable valuations for these companies. Companies with these
two criteria - cheap valuations and improving business fundamentals - are
the types of stocks that the bottom-up models constantly search for, so the
fund's total weighting in these countries has grown.
Q. HOW HAS THE FUND'S EXPOSURE TO EMERGING MARKETS CHANGED DURING THE
PERIOD?
A. As I've noted in several past reports, the fund would probably increase
its emerging market holdings over time in a measured and prudent way.
During the past six months, the fund's holdings in emerging markets
(including holdings of closed-end funds focused on emerging markets)
increased from about 12% to 15%. As the models find further attractive
opportunities, that exposure is likely to increase moderately.
Q. DURING THE PERIOD, THE FUND'S ASSETS GREW SIGNIFICANTLY, FROM $295
MILLION TO MORE THAN $499 MILLION. WAS THAT A PROBLEM?
A. No, it wasn't. In fact, the fund is about as fully invested as it has
ever been. An advantage of quantitative investing is that because the
models are continuously monitoring over 5,000 different companies, it is
reasonably easy to put more money to work in relatively attractive ideas.
Q. WHICH INVESTMENTS PROVED DISAPPOINTING FOR THE FUND?
A. Two types of stocks come to mind. First, international technology
stocks, although much less important to the fund than they once were, still
proved disappointing during the period. Even though on some valuation
criteria they were arguably cheaper than their U.S. counterparts, the U.S.
technology underperformance in the fall spilled over to the international
technology companies, and they tended to do poorly as well. Second, some of
the developed country closed-end funds that this fund owns have proven
disappointing so far. Despite their large discounts, returns have been
modest.
Q. WHAT'S THE OUTLOOK FOR THE FUND, GREG?
A. The valuations of international companies continue to look quite
reasonable compared to their U.S. counterparts. Shareholders with long-term
perspectives could do reasonably well if they ignore some of the bumps that
international markets tend to deliver along the way. One very encouraging
sign is that information disclosure continues to improve for many
international companies. I believe that quantitative methods can add even
more value in markets where disclosure is better. I do want to repeat one
caution that I've mentioned in several past reports: some analysts feel
that the dollar is entering a sustained period of substantial strength.
Although the fund has done reasonably well recently, even though the dollar
has been strong, it's quite possible that the fund could undergo a very
challenging period if the dollar continues to strengthen significantly.

FUND FACTS
GOAL: long-term growth of capital by investing
mainly in foreign equity securities that are
determined, mainly through both technical and
fundamental analysis, to be undervalued
compared to others in their industries and
countries
START DATE: December 27, 1991
TRADING SYMBOL: FDIVX
SIZE: as of April 30, 1996, more than
$499 million
MANAGER: Gregory Fraser, since 1991;
manager, Fidelity Select Defense and
Aerospace Portfolio, 1989-1990; Fidelity
Select Environmental Services Portfolio, 1991;
joined Fidelity in 1986
(checkmark)
GREG FRASER ON THE STOCK SELECTION MODELS THE FUND
USES
"As many of the fund's long-term shareholders
know, computer models are an integral part of the
way this fund is managed. Conceptually, I like to
think of two types of models that the fund uses to
help pick stocks: descriptive and predictive.
"Probably one of the most well-known examples of
descriptive models are computer screens. These
are programs which enable the user to generate lists
of stocks which meet certain criteria. An example
would be companies with a price-to-book ratio of
less than 1.5, with debt less than 30% of equity and
with earnings that are expected to grow. The use of a
screen like this probably would be to locate stocks
with inexpensive valuations and good balance
sheets whose earnings are growing. Of course,
there are countless other examples of descriptive
models: companies with prices hitting new lows,
companies with prices hitting new highs, companies
whose earnings are growing at certain rates; the list
goes on.
"Predictive models are what I hope will, over time,
distinguish the performance of Diversified
International Fund. Using a variety of variables,
these proprietary models actually take the next
step and try to predict which stocks will do well and
which will do poorly. Because I know that models
can miss important developments, especially if they
are recent, I do two more things before I buy any of
these stocks. First, I check company by company for
what our fundamental analysts are saying. Then I
study the recent developments that the company
itself has disclosed. These additional checks are an
attempt to ensure the best possible results for the
fund's shareholders."
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
DIVERSIFIED INTERNATIONAL
INVESTMENT CHANGES

GEOGRAPHIC DIVERSIFICATION
AS OF APRIL 30, 1996
United States 4.2%
Canada 6.6%
United Kingdom 5.2%
Row: 1, Col: 1, Value: 4.2
Row: 1, Col: 2, Value: 5.2
Row: 1, Col: 3, Value: 6.4
Row: 1, Col: 4, Value: 33.7
Row: 1, Col: 5, Value: 5.8
Row: 1, Col: 6, Value: 19.3
Row: 1, Col: 7, Value: 3.9
Row: 1, Col: 8, Value: 8.300000000000001
Row: 1, Col: 9, Value: 6.6
Row: 1, Col: 10, Value: 6.6
France 6.6%
Sweden 6.4%
Germany 8.3%
Hong Kong 3.9%
Other 33.7%
Japan 19.3%
Netherlands 5.8%
AS OF OCTOBER 31, 1995

Australia 3.6%
United States 5.3%
Canada 3.4%
United Kingdom 6.8%
Row: 1, Col: 1, Value: 5.3
Row: 1, Col: 2, Value: 6.8
Row: 1, Col: 3, Value: 4.3
Row: 1, Col: 4, Value: 28.7
Row: 1, Col: 5, Value: 4.7
Row: 1, Col: 6, Value: 29.8
Row: 1, Col: 7, Value: 9.300000000000001
Row: 1, Col: 8, Value: 4.1
Row: 1, Col: 9, Value: 3.4
Row: 1, Col: 10, Value: 3.6
France 4.1%
Sweden 4.3%
Germany 9.3%
Japan 29.8%
Other 28.7%
Netherlands 4.7%
ASSET ALLOCATION
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Stocks and closed-end
investment companies 96.6 94.4

Bonds 0.8 1.5

Short-term investments 2.6 4.1

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

Veba AG Ord. 1.5 1.4
(Germany, Electric Utilities)

Fuji Photo Film Co. Ltd. 1.3 1.7
(Japan, Photographic Equipment)

Imperial Oil Ltd. 1.2 0.0
(Canada, Oil & Gas)

Bayer AG 1.2 1.8
(Germany, Chemicals & Plastics)

Deutsche Bank AG 1.1 0.8
(Germany, Banks)

Telebras sponsored ADR 1.0 0.4
(Brazil, Telephone Services )

Dia-Tokyo Fire & Marine Insurance Ord. 1.0 0.9
(Japan, Insurance)

ING Groep NV 1.0 0.5
(Netherlands, Credit & Other Finance )

Canon, Inc. 1.0 1.8
(Japan, Computers & Office Equipment)

Delhaize Freres & Cie Le Lion SA 1.0 0.0
(Belgium, Grocery Stores)

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

Finance 23.9 17.8

Basic Industries 9.1 8.4

Utilities 8.4 10.6

Energy 7.9 4.5

Technology 7.4 19.1

Health 6.7 6.2

Durables 6.6 5.0

Nondurables 5.6 6.6

Industrial Machinery & Equipment 4.9 5.5

Media & Leisure 4.2 2.7

DIVERSIFIED INTERNATIONAL
INVESTMENTS APRIL 30, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 87.3%
SHARES VALUE (NOTE 1)
ARGENTINA - 2.3%
Banco de Galicia Y Buenos Aires SA
sponsored ADR representing
Class B shares 124,750 $ 2,931,832
Banco Frances del Rio de la Plata SA
ADR 114,375 3,288,281
Telecom Argentina Class B sponsored
ADR 35,000 1,583,750
Telefonica de Argentina SA sponsored
ADR 75,000 2,193,750
YPF Sociedad Anonima sponsored
ADR representing Class D shares 70,000 1,531,250
11,528,863
AUSTRALIA - 2.8%
Advance Bank Australia Ltd. 218,846 902,781
Australia & New Zealand Banking
Group Ltd. 400,000 1,914,592
Caltex Australia Ltd. 700,000 3,058,466
Capral Aluminum Ltd. 572,653 1,677,054
Consolidated Rutile Ltd. (a) 53,201 113,083
Cortecs International Ltd. sponsored ADR 1,000 29,000
Gold Mines of Kalgoorlie Ltd. 600,000 699,078
News Corp. Ltd. ADR 50,000 1,175,000
Pioneer International Ltd. 300,000 913,997
Santos Ltd. 300,000 1,072,235
Savage Resources Ltd. 55,000 48,495
Savage Resources Ltd. (warrants) (a) 5,500 1,407
Siddons Ramset Ltd. 102,958 445,795
Sons of Gwalia NL 150,000 1,068,692
Western Mining Holdings Ltd. 100,000 730,568
13,850,243
BAHAMAS (NASSAU) - 0.4%
Sun International Hotels Ltd. Ord. (a) 45,600 1,949,400
BELGIUM - 1.0%
Delhaize Freres & Cie Le Lion SA 100,000 4,943,570
BERMUDA - 0.5%
Partner Re Holdings 80,000 2,260,000
BRAZIL - 1.6%
Aracruz Celulose SA ADR 25,000 225,000
Brahma (Cia Cervejaria) PN (Pfd. Reg.):
(warrants) (a) 188,529 9,503
Class B 3,205,000 1,541,192
Telebras sponsored ADR 95,000 5,141,875
Telebras PN (Pfd. Reg.) 20,000,000 1,082,716
8,000,286
CANADA - 6.2%
Abitibi Price, Inc. 15,000 219,155
Alberta Energy Co. Ltd. 50,000 978,305
Alliance Forest Products, Inc. 10,000 167,028
Avenor, Inc. 15,000 261,554
BCE, Inc. 100,000 3,931,574
Bombardier, Inc. Class B 50,000 702,984
C A E Industries Ltd. 50,000 436,842
Canadian Fracmaster Ltd. 75,000 333,138
Canadian Natural Resources Ltd. (a) 50,000 846,151
Canfor Corp. 10,000 102,786
Cascades, Inc. 20,000 92,508
Chieftain International, Inc. (a) 50,000 943,431
Domtar Inc. 20,000 153,445
Donohue, Inc. (vtg.) 20,000 277,523
FCA International Ltd. (a) 150,300 248,284
Imperial Oil Ltd. 150,000 6,095,591

SHARES VALUE (NOTE 1)
Loewen Group, Inc. 90,000 $ 2,709,152
MacMillan Bloedel Ltd. 10,000 132,888
Magna International, Inc. Class A 50,000 2,305,349
Newbridge Networks Corp. (a) 35,000 2,253,125
Noranda Forest, Inc. 20,000 140,230
PC Docs Group International, Inc. (a) 40,000 822,290
Petro-Canada 75,000 960,868
Petro-Canada 1st installment receipt (f) 150,000 1,040,711
Ranger Oil Ltd. 100,000 741,529
Repap Enterprises, Inc. 20,000 85,900
Rio Alto Exploration Ltd. (a)(b) 28,000 148,012
Royal Plastics Group Ltd. (a) 10,000 154,179
St. Lawrence Cement, Inc. Class A 5,000 28,083
Saskatchewan Wheat Pool Class B (a)(b) 50,000 519,438
Shell Canada Ltd. Class A 45,000 1,536,287
Stone Consolidated Corp. 15,000 196,028
Talisman Energy, Inc. 25,000 590,103
Tembec, Inc. Class A 20,000 143,167
30,297,638
DENMARK - 1.0%
Den Danske Bank Group AS 15,000 978,150
International Service Systems AS,
Series B 75,000 2,121,443
Novo-Nordisk AS Class B 8,000 1,039,295
Olicom A/S (a) 45,000 596,250
4,735,138
FINLAND - 1.5%
Cultor OY Ord., Series 2 50,000 2,189,834
Instrumentarium OY Class B 53,100 1,426,078
Kemira OY sponsored ADR (b) 50,000 956,250
Kemira OY 10,000 96,063
KCI (Konecranes International) (a)(b) 27,000 490,853
Lassila & Tikahoja OY 35,000 1,417,194
Neste Oy 30,000 542,914
7,119,186
FRANCE - 6.6%
Alcatel Alsthom sponsored ADR 50,000 950,000
Axime SA Ex Segin (a)(b) 11,000 1,354,795
CGIP 6,300 1,406,903
Carbonne-Lorraine (LE) 5,000 714,424
Credit Commercial de France
(warrants) (a) 277 9
Credit National 35,000 2,736,659
Dauphin Office Technique d'Affichage SA 120 6,520
Elf Aquitaine SA sponsored ADR 25,000 940,625
Elf Sanofi SA 17,600 1,419,026
Eramet SA 50,000 3,812,838
Eurafrance (Societe) 4,546 1,747,380
Michelin SA (Compagnie Generale
des Etablissements) Class B 85,000 4,208,913
Pechiney SA Class A 50,000 2,354,022
Rhone Poulenc SA Class A 40,500 970,998
Salomon SA 1,500 1,044,084
Societe Generale Class A 27,500 3,190,255
Stolt Comex Seaway SA (a) 45,600 615,600
Total SA Class B 30,000 2,034,223
Usinor Sacilor (a) 85,000 1,313,950
Worms et Compagnie SA (Reg.) 30,000 1,607,309
32,428,533
GERMANY - 5.6%
Andrea-Noris Zahn 5,000 1,534,193
BASF AG 10,000 2,728,905
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
GERMANY - CONTINUED
Bayer AG 18,000 $ 5,793,374
Deutsche Bank AG 110,000 5,268,941
Hoechst AG Ord. 2,000 673,217
Springer Axel Verlag AG (Reg.) 3,000 1,929,166
Thyssen AG Ord. 12,000 2,173,984
Veba AG Ord. 148,000 7,352,897
27,454,677
HONG KONG - 3.9%
Cheung Kong Holdings Ltd. 400,000 2,856,884
Ek Chor China Motorcycle 40,000 590,000
HSBC Holdings PLC 150,000 2,223,644
Hong Kong Telecommunications Ltd. 1,100,000 2,090,000
Hutchison Whampoa Ltd. Ord. 500,000 3,102,499
Jardine Matheson Holdings Ltd. Ord. 400,000 3,200,000
New World Infrastructure Ltd. (a) 100,000 222,346
New World Infrastructure Ltd. (a)(b) 200,000 444,692
Peregrine Investments Holdings Ltd. 2,500,000 3,861,965
Semi-Tech (Global) Ltd. 300,000 444,045
19,036,075
INDONESIA - 0.0%
Sampoerna Hanjaya Mandala (For. Reg.) 10,000 110,586
IRELAND - 0.8%
Bank of Ireland, Inc. 100,000 723,504
Independent Newspapers PLC 161,457 1,338,503
IAWS Group PLC Class A (Reg.) 180,000 401,545
Jurys Hotel Group PLC (UK) 150,000 565,238
Saville Systems Ireland PLC sponsored
ADR (a) 37,500 1,021,875
4,050,665
ISRAEL - 0.7%
ECI Telecom Ltd. 70,000 1,828,750
Edusoft Ltd. 5,000 24,375
Elscint Ltd. (a) 34,780 513,005
Koor Industries Ltd. sponsored ADR 55,000 1,031,250
3,397,380
ITALY - 2.0%
Credito Italiano Ord. 1,000,000 1,271,672
Eni Spa sponsored ADR (a) 43,000 1,827,500
Mondadori Arnoldo Editore Spa 200,000 1,670,590
Stet (Societa Finanziaria Telefonica)
Spa Ord. 800,000 2,701,117
Telecom Italia Spa 600,000 1,220,190
Telecom Italia Mobile Spa (a) 600,000 1,316,238
10,007,307
JAPAN - 19.3%
Akita Bank Ltd. 150,000 1,112,643
Canon, Inc. 250,000 4,945,081
Chiyoda Fire & Marine Insurance Co. Ltd. 183,000 1,223,423
Chubu Steel Plate Co. Ltd. 100,000 678,998
Chugoku Bank Ltd. 40,000 730,350
Chuo Trust & Banking Co. Ltd. 150,000 1,497,789
Citizen Watch Co. Ltd. Ord. 220,000 1,914,317
Dai-Tokyo Fire & Marine Insurance Ord. 650,000 5,081,071
Daiichi Pharmaceutical Co. Ltd. 85,000 1,422,662
Daiwa House Industry Co. Ltd. 100,000 1,588,132
Dowa Fire & Marine Industries Co. Ltd. 250,000 1,495,412
Eighteenth Bank 250,000 2,472,540
Fuji Photo Film Co. Ltd. 205,000 6,355,380
Fujitsu Ltd. 150,000 1,540,583

SHARES VALUE (NOTE 1)
Hitachi Ltd. 300,000 $ 3,223,812
Hokko Chemical Industry Co. Ltd. 104,000 731,872
Honda Motor Co. Ltd. 100,000 2,272,835
Izumiya Co. Ltd. 100,000 1,901,954
Kagoshima Bank Ltd. 50,000 408,920
Kao Corp. 275,000 3,661,262
Kirin Brewery Co. Ltd. 100,000 1,293,329
Konica Corp. 200,000 1,559,602
Kyocera Corp. 15,000 1,124,055
Maruzen Showa Unyu Co. Ltd. 200,000 1,257,192
Matsushita Electric Industrial Co. Ltd. 150,000 2,638,961
Mitsubishi Heavy Industries Ltd. 450,000 3,996,957
Mitsui Trust and Banking Co. Ltd. 100,000 1,198,231
Nintendo Co. Ltd. Ord. 5,000 384,195
Nittetsu Mining Co. Ltd. 200,000 2,206,267
Nitto Denko Corp. 100,000 1,607,151
Nomura Securities Co. Ltd. 158,000 3,425,800
Oita Bank Ltd. 70,000 622,415
Okinawa Bank Ltd. 30,000 1,075,555
Omron Corp. 175,000 3,927,535
Orient Finance Co. Ltd. 200,000 1,255,290
Ricoh Co. Ltd. Ord. 250,000 2,924,255
Royal Co. Ltd. 100,000 2,035,091
Sekisui House Ltd. 150,000 1,854,405
Sekisui Chemical Co. Ltd. 200,000 2,510,580
Sony Corp. 40,000 2,586,658
TDK Corp. 40,000 2,278,541
Takeda Chemical Industries Ltd. 270,000 4,647,425
Toshiba Corp. 150,000 1,161,143
Toyota Motor Corp. 125,000 2,841,044
Tokyo Tatemono Co. Ltd. (a) 100,000 620,988
95,291,701
KOREA (SOUTH) - 0.5%
Korea Electric Power Corp. 50,000 2,388,500
Samsung Electronics Co. Ltd.:
GDS (non-vtg.) (bonus issue 3/96) (b) 3,013 123,315
GDS (vtg.) (bonus issue 3/96) (b) 90 6,720
GDS (vtg.) (b) 300 22,410
GDS (vtg.) (a) 300 22,410
GDS (vtg.) (bonus issue 3/96) (a) 90 6,720
2,570,075
LUXEMBOURG - 0.2%
Quilmes Industrial SA sponsored ADR (a) 27,500 326,563
Quilmes Industrial SA 55,000 660,000
986,563
MEXICO - 1.1%
Corporacion Geo SA de CV (a) 600,000 2,378,962
Corporacion Industrial Sanluis SA
de CV Unit 110,000 646,797
DESC (Sociedad de Fomento Industrial SA)
Class B (a) 270,000 1,350,910
Grupo Radio Centro SA de CV
sponsored ADR 50,000 443,750
Telefonos de Mexico SA sponsored ADR
representing shares Ord. Class L 20,000 680,000
5,500,419
NETHERLANDS - 5.8%
ABN-AMRO Holdings NV 59,000 3,054,158
Core Laboratories NV (a) 600 7,725
DSM NV 35,000 3,574,555
Heineken NV 5,000 1,046,396
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
NETHERLANDS - CONTINUED
ING Groep NV 65,000 $ 5,018,675
IHC Caland NV 79,900 3,138,179
Norit NV 20,000 245,112
Philips Electronics NV (Bearer) 30,000 1,059,235
Royal Dutch Petroleum Co. 25,000 3,581,250
SGS Thomson Microelectronics NV (a) 25,000 1,175,000
Telegraaf 5,000 892,909
Unilever NV:
ADR 30,000 4,095,000
Ord. 6,500 886,898
Twentsche Kabel Holding NV 15,000 632,040
28,407,132
NETHERLANDS ANTILLES - 0.5%
Intrum Justitia NV (Reg.) 1,000,000 1,462,081
Singer Co. NV (The) 40,000 1,035,000
2,497,081
NEW ZEALAND - 0.8%
Brierley Investments Ltd. 1,000,000 940,437
Lion Nathan Ltd. 1,200,000 2,990,176
3,930,613
NORWAY - 3.3%
Aker AS Class B (non-vtg.) 75,000 1,243,526
Hafslund Nycomed AS, Series B 140,000 3,907,789
Helikopter Services AS 250,000 2,833,109
Netcom ASA (b) 14,000 193,792
Norsk Hydro AS ADR 75,000 3,450,000
Smedvig AS 21,000 515,892
Schibsted AS:
Series B 100,000 1,460,287
Class B (b) 50,000 730,144
Saga Petroleum AS Class B 130,000 1,759,950
16,094,489
PANAMA - 0.5%
McDermott (J. Ray) SA 100,000 2,437,500
PERU - 0.1%
Banco Weise Ltd. sponsored ADR 105,000 708,750
PORTUGAL - 0.1%
Portugal Telecom SA sponsored ADR 25,000 540,625
SOUTH AFRICA - 1.4%
Anglo American Corp. of South Africa
Ltd. (Reg.) 40,000 2,706,697
Free State Consolidated Gold Mines
Ltd. Ord. 75,000 831,409
Gencor Ltd. (Reg.) 561,300 2,249,089
Rustenberg Platinum Holding Ltd. ADR 20,639 402,461
South African Brewers Ltd. 26,000 758,083
6,947,739
SPAIN - 1.6%
Banco De Santander SA de Credito ADR 15,000 703,125
Empresa Nacional De Electricidad SA
sponsored ADR 20,000 1,252,500
Hidroelectrica de Cantabrico SA 35,000 1,168,224
Telefonica de Espana SA sponsored ADR 60,000 3,157,500
Union Electrica Fenosa SA 300,000 1,792,979
8,074,328
SWEDEN - 6.4%
Astra AB Class A Free shares 75,000 3,329,015
Autoliv AB 50,000 2,723,572

SHARES VALUE (NOTE 1)
Cardo AB 70,000 $ 1,525,200
Fastighets AB Tornet 100,000 117,776
Incentive AB Class A 50,000 2,649,962
Investor AB Class B Free shares 100,000 3,989,665
Iro AB 100,000 956,931
Marieberg Tidnings Class A Free shares 75,000 1,755,600
Nobel Pharma AB 75,000 1,192,483
Nordbanken AB 101,000 1,724,831
Scania AB Class B (a) 15,000 414,057
Swedbank Class A 100,000 1,126,234
Stadshypotek, Series A 60,000 1,307,315
Skandinaviska Enskilda Banken Class A
Free shares 320,000 2,402,632
Svedala Industri Free shares 70,000 2,504,214
Volvo AB Class B 175,000 4,006,227
31,725,714
SWITZERLAND - 3.6%
Bank for International Settlements 450 4,122,137
Bucher Holding AG (Bearer) 1,700 1,270,390
CIBA-GEIGY AG (Reg.) 4,000 4,631,579
Nestle SA (Reg.) 4,000 4,438,730
Sandoz AG (Reg.) 3,000 3,268,783
17,731,619
UNITED KINGDOM - 5.2%
British Petroleum PLC ADR 9,112 995,486
Carlton Communications PLC 375,000 2,634,007
Corporate Services Group PLC 10,000 20,876
Delphi Group PLC 10,000 62,854
English China Clay PLC 15,000 65,907
Grand Metropolitan PLC 350,000 2,305,415
Hogg Robinson Group 200,000 759,679
Huntingdon International Holdings
PLC Ord. (a) 500,000 753,650
Invesco PLC 250,000 953,367
Mcbride PLC 10,000 19,595
Millennium & Copthorne Hotels PLC
sponsored ADR (b) 28,000 539,000
Nichols (Harvey) Group PLC (b) 100,000 485,351
Planning Sciences International PLC
sponsored ADR 2,000 32,000
RTZ Corp. PLC Ord. 242,000 3,815,459
Royal Insurance Holdings PLC 150,000 820,725
Shell Transport & Trading PLC 200,000 2,642,297
SmithKline Beecham PLC ADR Ord. 60,000 3,240,000
WPP Group PLC 790,000 2,423,211
Waste Management International PLC
sponsored ADR (a) 245,000 2,786,875
25,355,754
TOTAL COMMON STOCKS
(Cost $369,860,827) 429,969,649
CLOSED-END INVESTMENT COMPANIES - 6.8%
AUSTRIA - 0.1%
Austria Fund, Inc. 75,000 665,625
CANADA - 0.4%
Canadian General Investment Ltd. 65,000 1,749,018
CHILE - 0.3%
Five Arrows Chile Investment Trust Ltd. 500,000 1,440,000
CLOSED-END INVESTMENT COMPANIES - CONTINUED
SHARES VALUE (NOTE 1)
EMERGING MARKETS - 1.6%
Emerging Markets Infrastructure
Fund, Inc. 74,700 $ 784,350
GT Global Developing Markets Fund 300,000 3,150,000
TCW/DW Emerging Markets
Opportunities Trust (SBI) 206,500 2,245,688
Templeton Dragon Fund, Inc. 120,000 1,620,000
7,800,038
GERMANY - 1.6%
Central European Equity Fund 142,058 2,521,530
Emerging Germany Fund, Inc. 285,000 2,101,875
The New Germany Fund, Inc. 257,504 3,122,236
7,745,641
MALAYSIA - 0.5%
Malaysia Equity Fund Ltd. 120,000 2,340,000
REGIONAL AFRICA - 0.3%
Morgan Stanley Africa Investment
Fund, Inc. 70,000 883,750
Southern Africa Fund, Inc. 50,000 825,000
1,708,750
REGIONAL ASIA - 0.3%
Morgan Stanley Asia-Pacific Fund, Inc. 125,000 1,500,000
Morgan Stanley Asia-Pacific Fund, Inc.
(rights) (a) 125,001 85,938
1,585,938
SPAIN - 0.9%
Growth Fund of Spain, Inc. 385,000 4,427,500
THAILAND - 0.2%
Thai Prime Fund 61,000 1,116,300
UNITED KINGDOM - 0.0%
Fleming Natural Resources Investment
Trust PLC 20,000 36,760
UNITED STATES OF AMERICA - 0.6%
Alliance Global Environment Fund 161,900 2,023,750
Global Health Sciences Fund (a) 50,000 925,000
2,948,750
TOTAL CLOSED-END INVESTMENT COMPANIES
(Cost $30,594,145) 33,564,320
NONCONVERTIBLE PREFERRED STOCKS - 2.5%
GERMANY - 1.1%
GEA AG 2,000 621,511
SAP AG 3,000 398,172
Volkswagen AG 4% 17,500 4,444,263
5,463,946
ITALY - 0.4%
Stet (Societa Finanziaria Telefonica) Spa 800,000 2,094,608
UNITED STATES OF AMERICA - 1.0%
Freeport McMoran Copper & Gold, Inc.:
Series B 70,000 2,511,250
depositary shares representing gold
pfd., Series II 70,000 2,345,000
4,856,250
TOTAL NONCONVERTIBLE PREFERRED STOCKS
(Cost $12,085,375) 12,414,804
GOVERNMENT OBLIGATIONS (C) - 0.8%
MOODY'S PRINCIPAL VALUE
RATINGS AMOUNT (D) (NOTE 1)
ARGENTINA - 0.4%
Argentina Republic BOCON
5.4219%, 4/1/01 (e) B1 $ 2,025,309 $ 1,752,208
NEW ZEALAND - 0.4%
New Zealand Government
9%, 11/15/96 Aaa NZD 3,000,000 2,054,819
TOTAL GOVERNMENT OBLIGATIONS
(Cost $3,024,043) 3,807,027
REPURCHASE AGREEMENTS - 2.6%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a
joint trading account at 5.33%,
dated 4/30/96 due 5/1/96 $ 13,019,927 13,018,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $428,582,390) $ 492,773,800
CURRENCY ABBREVIATIONS
CAD - Canadian dollar
NZD - New Zealand dollar
LEGEND
(a) Non-income producing
(b) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $6,014,772 or 1.2% of net
assets.
(c) Some foreign government obligations have not been individually rated by
S&P or Moody's. The ratings listed are assigned to securities by FMR, the
fund's investment adviser, based principally on S&P and Moody's ratings of
the sovereign credit of the issuing government.
(d) Principal amount stated in United States dollars unless otherwise
noted.
(e) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(f) Purchased on an installment basis. Market value reflects only those
payments made through April 30, 1996. The remaining installments
aggregating $1,275,000 CAD are due on September 23, 1996 and March 24,
1997.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $329,149,382 and $179,494,364, respectively.
The fund placed a portion of its portfolio transactions with brokerage
firms which are affiliates of FMR. The commissions paid to these affiliated
firms were $47,584 for the period (see Note 5 of Notes to Financial
Statements).
INCOME TAX INFORMATION
At April 30, 1996, the aggregate cost of investment securities for income
tax purposes was $428,641,815. Net unrealized appreciation aggregated
$64,131,985, of which $68,108,985 related to appreciated investment
securities and $3,977,000 related to depreciated investment securities.
INDUSTRY DIVERSIFICATION
As a Percentage of Total Value of Investment in Securities
Aerospace & Defense 0.3%
Basic Industries 9.1
Construction & Real Estate 3.7
Durables 6.6
Energy 7.9
Finance 23.9
Government Obligations 0.8
Health 6.7
Holding Companies 3.2
Industrial Machinery & Equipment 4.9
Media & Leisure 4.2
Nondurables 5.6
Precious Metals 1.2
Repurchase Agreements 2.6
Retail & Wholesale 1.4
Services 1.1
Technology 7.4
Transportation 1.0
Utilities 8.4
100.0%
DIVERSIFIED INTERNATIONAL
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996 (UNAUDITED)

ASSETS

Investment in $ 492,773,800
securities, at
value
(including
repurchase
agreements
of
$13,018,000)
(cost
$428,582,390
) - See
accompanyin
g schedule

Cash 237

Receivable for 7,062,790
investments
sold

Receivable for 3,365,299
fund shares
sold

Dividends 1,786,240
receivable

Interest 92,888
receivable

Other 6,417
receivables

TOTAL ASSETS 505,087,671

LIABILITIES

Payable for $ 3,181,905
investments
purchased

Payable for 1,844,206
fund shares
redeemed

Accrued 331,316
management
fee

Other payables 199,321
and
accrued
expenses

TOTAL 5,556,748
LIABILITIES

NET ASSETS $ 499,530,923

Net Assets
consist of:

Paid in capital $ 419,710,075

Undistributed 1,973,366
net
investment
income

Accumulated 13,662,876
undistributed
net realized
gain (loss) on
investments
and foreign
currency
transactions

Net unrealized 64,184,606
appreciation
(depreciation
) on
investments
and assets
and liabilities
in
foreign
currencies

NET ASSETS, for $ 499,530,923
36,143,869
shares
outstanding

NET ASSET $13.82
VALUE,
offering price

and
redemption
price per
share
($499,530,92
3 (divided by)
36,143,869
shares)

STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)

INVESTMENT $ 4,747,748
INCOME
Dividends

Interest 1,013,664

5,761,412

Less foreign (443,942
taxes )
withheld

TOTAL 5,317,470
INCOME

EXPENSES

Management $ 1,480,738
fee
Basic fee

Performance 132,565
adjustment

Transfer agent 519,658
fees

Accounting 139,235
fees and
expenses

Non-interested 678
trustees'
compensatio
n

Custodian fees 112,513
and
expenses

Registration 64,869
fees

Audit 23,904

Legal 1,372

Miscellaneous 2,776

Total 2,478,308
expenses
before
reductions

Expense (41,724 2,436,584
reductions )

NET 2,880,886
INVESTMENT
INCOME

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

Investment 14,446,458
securities

Foreign (24,761 14,421,697
currency )
transactions

Change in net
unrealized
appreciation
(depreciation
) on:

Investment 33,431,696
securities

Assets and 5,320 33,437,016
liabilities in
foreign
currencies

NET GAIN (LOSS) 47,858,713

NET INCREASE $ 50,739,599
(DECREASE)
IN NET ASSETS
RESULTING
FROM
OPERATIONS

OTHER $ 138,783
INFORMATION
Accounting
fees paid to
FSC

Expense $ 37,089
reductions
Directed
brokerage
arrangement
s

Transfer 4,635
agent
interest
credits

$ 41,724

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS SIX MONTHS YEAR ENDED
ENDED OCTOBER 31,
APRIL 30, 1996 1995
(UNAUDITED)

Operations $ 2,880,886 $ 4,593,024
Net
investment
income

Net realized 14,421,697 11,711,051
gain (loss)

Change in 33,437,016 (3,375,746)
net
unrealized
appreciation
(depreciation
)

NET INCREASE 50,739,599 12,928,329
(DECREASE)
IN NET
ASSETS
RESULTING
FROM
OPERATIONS

Distributions to (5,256,708) (804,584)
shareholders
From net
investment
income

From net (9,796,447) (10,459,145)
realized gain

TOTAL (15,053,155) (11,263,729)
DISTRIBUTION
S

Share 404,788,611 211,031,927
transactions
Net proceeds
from sales of
shares

Reinvestmen 14,593,828 10,913,981
t of
distributions

Cost of (250,554,559) (279,746,151)
shares
redeemed

NET INCREASE 168,827,880 (57,800,243)
(DECREASE)
IN NET
ASSETS
RESULTING
FROM SHARE
TRANSACTIO
NS

TOTAL 204,514,324 (56,135,643)
INCREASE
(DECREASE)
IN NET ASSETS

NET ASSETS

Beginning of 295,016,599 351,152,242
period

End of period $ 499,530,923 $ 295,016,599
(including
undistribute
d net
investment
income of
$1,973,366
and
$5,148,992
,
respectivel
y)

OTHER
INFORMATION
Shares

Sold 31,008,689 17,615,508

Issued in 1,169,376 980,592
reinvestment
of
distributions

Redeemed (19,202,875) (23,603,323)

Net increase 12,975,190 (5,007,223)
(decrease)

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

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED OCTOBER 31, DECEMBER 27,
ENDED 1991
APRIL 30, 1996 (COMMENCEMENT
OF
OPERATIONS) TO
OCTOBER 31,

</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SELECTED PER-
SHARE DATA UNAUDITED 1995 1994 E 1993 1992

Net asset $ 12.73 $ 12.46 $ 11.32 $ 8.46 $ 10.00
value,
beginning of
period

Income from
Investment
Operations

Net .05 .22 .05 .07 .07
investment
income

Net realized 1.67 .47 1.20 2.89 (1.61)
and
unrealized
gain (loss)

Total from 1.72 .69 1.25 2.96 (1.54)
investment
operations

Less (.22) (.03) (.01) (.10) -
Distributions
From net
investment
income

From net (.41) (.39) (.10) - -
realized gain

Total (.63) (.42) (.11) (.10) -
distributions

Net asset $ 13.82 $ 12.73 $ 12.46 $ 11.32 $ 8.46
value, end of
period

TOTAL RETURN B, 14.04% 6.02% 11.14% 35.38% (15.40)%
C

RATIOS AND
SUPPLEMENT
AL DATA

Net assets, $ 499,531 $ 295,017 $ 351,152 $ 255,029 $ 36,439
end of period
(000 omitted)

Ratio of 1.29% A 1.13% 1.25% 1.47% 2.00% A,
expenses to D
average net
assets

Ratio of 1.27% A, F 1.12% F 1.25% 1.47% 2.00% A
expenses to
average net
assets after
expense
reductions

Ratio of net 1.50% A 1.55% .96% .84% 1.38% A
investment
income to
average net
assets

Portfolio 99% A 101% 89% 56% 56% A
turnover rate

Average $ .0191
commission
rate G

</TABLE>
<TABLE>
<CAPTION>
<S> <C>
A ANNUALIZED BTOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT
ANNUALIZED. C THE TOTAL
RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN (SEE
NOTE 7 OF NOTES TO FINANCIAL STATEMENTS). D FMR 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 EFFECTIVE NOVEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF
POSITION 93-2, "DETERMINATION,
DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF INCOME, CAPITAL
GAIN, AND RETURN OF CAPITAL
DISTRIBUTIONS BY INVESTMENT COMPANIES." AS A RESULT, NET INVESTMENT
INCOME PER SHARE MAY REFLECT
CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES. F FMR OR
THE FUND HAS ENTERED INTO VARYING
ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF
THE FUND'S EXPENSES (SEE NOTE
7 OF NOTES TO FINANCIAL STATEMENTS). G FOR FISCAL YEARS BEGINNING ON OR
AFTER SEPTEMBER 1, 1995, A
FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR
SECURITY TRADES ON WHICH
COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND
FUND TO FUND DEPENDING ON
THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES
AND COMMISSION RATE STRUCTURES
MAY DIFFER.

</TABLE>

INTERNATIONAL VALUE
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (income) and capital gains (the profits the
fund earns when it sells securities that have grown in value).
CUMULATIVE TOTAL RETURNS
PERIODS ENDED PAST 6 PAST 1 LIFE OF
APRIL 30, 1996 MONTH YEAR FUND
S

INTERNATIONAL VALUE 12.06% 17.13% 19.12%

Morgan Stanley Capital 13.21% 11.40% 12.79%
International EAFE Index

International Funds Average 11.95% 15.95% n/a

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case six months, one year, or since the fund
started on November 1, 1994. For example, if you invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment would
be $1,050. You can compare the fund's returns to the performance of the
Morgan Stanley Capital International EAFE Index - a broad measure of the
performance of stocks in Europe, Australia, and the Far East. You can also
compare the fund's performance to the international funds average, which
reflects the performance of 316 funds with similar objectives tracked by
Lipper Analytical Services over the past six months. These benchmarks
include reinvested dividends and capital gains, if any, and exclude the
effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED PAST 1 LIFE OF
APRIL 30, 1996 YEAR FUND

INTERNATIONAL VALUE 17.13% 12.38%

Morgan Stanley Capital 11.40% 8.36%
International EAFE Index

International Funds Average 15.95% n/a

Let's say you invested $10,000 in Fidelity International Value Fund on
November 1, 1994, when the fund started. By April 30, 1996, the value of
your investment would have grown to $11,912 - a 19.12% increase on your
initial investment. That compares to $10,000 invested in the Morgan Stanley
Capital International EAFE Index, which would have increased value to
$11,279 over the same period - a 12.79% increase.

An interview with Richard Mace, Portfolio Manager of Fidelity International
Value Fund
Q. HOW DID THE FUND PERFORM, RICK?
A. As of April 30, 1996, the fund had a total return of 12.06% for the past
six months and 17.13% for the past year. For the same periods, the Morgan
Stanley Capital International EAFE Index - which tracks the performance of
stocks in Europe, Australia and the Far East - returned 13.21% and 11.40%,
respectively. Additionally, the Lipper international funds average stood at
11.95% for the six month period and 15.95% for the year.
Q. ALTHOUGH THE FUND OUTPERFORMED ITS PEER GROUP, WHAT CAUSED IT TO
UNDERPERFORM ITS BENCHMARK INDEX IN THE PAST SIX MONTHS?
A. As a result of strong cash inflows, the fund's assets more than tripled.
It was the high level of inflows that caused the cash balance to be higher
than usual. This higher cash balance held back returns during a period of
relatively strong stock market performance. That said, I would like to
strongly emphasize that a cash position of this size is in no way a policy
of the fund or an indication of my investment outlook. One way I attempted
to stay fully invested in the face of such a large inflow of funds was to
hold a Nikkei futures contract. This holding is only a temporary substitute
for holding individual stocks, and it will eventually be dissolved once I
have the opportunity to invest in individual equities. Additionally, it's
easy to see by the six-month performance of the fund and its peers that
it's been difficult recently to outperform the index. More importantly,
though, investors should note that the fund outperformed its peers in both
the six month and one year periods.
Q. JAPAN CONTINUES TO BE ONE OF THE MAJOR WEIGHTINGS OF THE FUND . . .
A. The fund's Japanese position is about in line with the Japanese
weighting of the EAFE index, but much larger than many international funds.
What made Japanese equities so attractive was the weak yen, low interest
rates, a recovering economy and a great variety of undervalued stocks.
These characteristics benefited broadly based export companies such as Sony
and Omron, retailers such as Ito-Yokado and auto companies such as Toyota
and Honda.
Q. SPECIFICALLY, WHAT IS THE ADVANTAGE OF A WEAK YEN?
A. It improves the competitiveness of Japanese companies by reducing the
prices of Japanese exports measured in foreign currencies. Additionally,
reported profits are favorably impacted by the translation of overseas
earnings back into yen. For example, when you consider a company like
Canon, a 1% weakening in the yen helps their earnings by roughly 5% to 10%.
Q. WHY HAS THE JAPANESE POSITION DECREASED SOMEWHAT?
A. Any decrease in the fund's Japanese position is not an indication that
my opinion of Japan has soured. Mainly, it's because I have found more
undervalued stocks elsewhere. Through company visits and financial
analysis, I constantly revaluate the value of companies on a bottom-up,
stock-by-stock basis.
Q. TURNING TO EUROPE, WHAT'S BEEN THE STORY THERE?
A. Europe has recently become more important to the fund. The increase in
the fund's European holdings has come mainly in French stocks and, to a
lesser extent, those from the United Kingdom and Germany. I believe that
the aggressive cost cutting of many European companies, the cheapness of
European stocks and the potential for a more robust European economy have
provided outstanding investment opportunities. Investors may remember the
spectacular performance of the stocks of U.S. companies in the early 1990s.
This performance was driven by cost cutting, increased corporate earnings
and a strong economy. Of course, there can be no guarantee this scenario
will occur in Europe.
Q. CAN YOU GIVE EXAMPLES OF SOME COMPANIES YOU'VE LIKED IN EUROPE?
A. Sure. Veba, a German conglomerate; Pechiney, a French aluminum company;
Alcatel Alsthom Compagnie Generale d'Electricite, a French telecom company;
and Volvo, the Swedish transportation company, all exemplify my reasons for
raising the fund's European position.
Q. WOULD YOU SAY THAT ONE OF THE FUND'S MAJOR THEMES WAS AN EMPHASIS ON
ECONOMICALLY SENSITIVE COMPANIES?
A. Definitely. Companies whose performance is influenced by the economic
cycle were very inexpensive and could benefit from any potential economic
recovery in the world's developed markets. Some companies that highlight
this theme include Veba, Pechiney, Alcatel, Honda, Scania (a Swedish truck
maker) and Michelin.
Q. WERE THERE ANY DISAPPOINTMENTS?
A. Unfortunately, Deutsche Bank has not exhibited the ability to cut costs
that I had hoped it would. The stock remains at very inexpensive levels,
and I am hopeful that the bank's continued cost-cutting efforts will
produce more meaningful results.
Q. WHAT'S YOUR OUTLOOK?
A. The economy has already begun to recover in Japan - to the benefit of
the fund - and I am hopeful for a similar scenario to occur in Europe. I
believe there is the potential for economic improvement in many areas of
the world and, in my opinion, the fund is well positioned to take advantage
of any recoveries.

FUND FACTS
GOAL: growth of capital by investing mainly
in the stocks of foreign companies that own
valuable assets or are undervalued in the
marketplace
START DATE: November 1, 1994
TRADING SYMBOL: FIVFX
SIZE: as of April 30, 1996, more than
$263 million
MANAGER: Richard Mace, since November
1994; co-manager, Fidelity Global Balanced
Fund, February 1993-December 1993 and
January 1995-March 1996; manager,
Fidelity Global Balanced Fund, since March
1996; manager, Fidelity International Growth &
Income Fund, 1994-March 1996; manager,
Fidelity Overseas, Fidelity Advisor
Overseas, VIP: Overseas, Fidelity Advisor
Annuity Overseas, since March 1996; joined
Fidelity in 1987
(checkmark)
RICK MACE ON SHAREHOLDER FRIENDLINESS IN EUROPE:
"Although European companies were not traditionally
known for seeking to maximize shareholder value,
that has changed dramatically as several companies
in Europe have taken steps to raise returns for their
shareholders. In my opinion, this benefits both the
company and its shareholders. In other words, to
compete globally, European organizations need to be
cost-competitive. This strategy helps the company
because it brings down the cost of capital, raises its
return on existing capital and fuels earnings growth.
Given that earnings drive stock prices, this strategy
should have a favorable effect on the company's
stock price.
"Let me give an example. Volvo has actively pursued
shareholder interest. The Swedish car company has
divested several non-core businesses, including
tobacco-maker Swedish Match. In addition,
companies such as Michelin, Veba, Alcatel and
Pechiney have all made similar efforts to cut costs
and focus on core businesses."
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
INTERNATIONAL VALUE
INVESTMENT CHANGES

GEOGRAPHIC DIVERSIFICATION
AS OF APRIL 30, 1996
France 7.5%
Row: 1, Col: 1, Value: 22.1
Row: 1, Col: 2, Value: 5.1
Row: 1, Col: 3, Value: 5.5
Row: 1, Col: 4, Value: 16.9
Row: 1, Col: 5, Value: 38.6
Row: 1, Col: 6, Value: 4.3
Row: 1, Col: 7, Value: 7.5
Germany 4.3%
United States 22.1%
United
Kingdom 5.1%
Japan 38.6%
Sweden 5.5%
Other 16.9%
AS OF OCTOBER 31, 1995
Canada 3.1%
France 4.8%
Row: 1, Col: 1, Value: 15.5
Row: 1, Col: 2, Value: 5.0
Row: 1, Col: 3, Value: 14.7
Row: 1, Col: 4, Value: 56.9
Row: 1, Col: 5, Value: 4.8
Row: 1, Col: 6, Value: 3.1
United States 15.5%
United Kingdom 5.0%
Other 14.7%
Japan 56.9%
ASSET ALLOCATION
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Stocks and equity futures 78.8 87.1

Bonds 1.5 4.5

Short-term investments 19.7 8.4

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

Volvo AB Class B 2.0 0.8
(Sweden, Automotive)

Hitachi Ltd. 1.4 4.3
(Japan, Electronics)

Alcatel Alsthom Cie Generale 1.3 0.6
d' Electricite SA
(France, Electric Utilities)

Veba AG Ord. 1.2 0.0
(Germany, Electric Utilities)

Pechiney SA Class A 1.2 0.3
(France, Metals & Mining)

Eramet SA 1.0 0.0
(France, Metals & Mining)

Huhtamaki Ord. 1.0 0.0
(Finland, Foods)

Ito-Yokado Co. Ltd. 1.0 3.1
(Japan, General Merchandise Stores)

Matsushita Electric Industrial Co. Ltd. 1.0 1.5
(Japan, Electrical Equipment)

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

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

Finance 13.1 4.4

Durables 11.7 6.6

Basic Industries 10.2 10.7

Technology 7.0 21.4

Industrial Machinery & Equipment 5.7 13.1

Retail & Wholesale 5.7 5.7

Energy 5.0 5.4

Construction & Real Estate 4.1 0.1

Nondurables 3.8 0.9

Utilities 3.7 3.5

INTERNATIONAL VALUE
INVESTMENTS APRIL 30, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 73.0%
SHARES VALUE (NOTE 1)
AUSTRALIA - 1.0%
Capral Aluminum Ltd. 250,000 $ 732,143
QNI Ltd. 350,000 867,943
Western Mining Holdings Ltd. 150,000 1,095,852
2,695,938
AUSTRIA - 0.2%
EVN (Energie-Versor Nieder) 360 52,619
Mayr Melnhof Karton AG 1,900 87,105
Radex Heraklith Industrie 10,000 303,466
443,190
BRAZIL - 0.8%
Brahma (Cia Cervejaria) PN Class B
(Pfd. Reg.) 530,000 254,862
Telebras sponsored ADR 35,000 1,894,375
Telesp PN (Pfd. Reg.) 350,000 62,453
2,211,690
CANADA - 1.2%
Alcan Aluminium Ltd. 60,000 1,907,419
Canada Occidental Petroleum Ltd. 200 6,901
Inco Ltd. 30,000 1,013,179
Methanex Corp. (a) 25,100 198,102
3,125,601
DENMARK - 1.2%
International Service Systems AS,
Series B 40,000 1,131,436
Unidanmark AS Class A 45,000 2,004,573
3,136,009
FINLAND - 2.1%
America Group Ltd. Class A 60,000 1,115,576
Cultor OY Ord., Series 2 15,000 656,950
Huhtamaki Ord. 80,000 2,644,328
Valmet OY Class A 92,500 1,280,330
5,697,184
FRANCE - 7.5%
Alcatel Alsthom Cie Generale
d'Electricite SA 36,600 3,439,211
Axa SA (a) 14,000 833,449
Axime SA Ex Segin (b) 14,500 1,785,866
Elf Aquitaine SA sponsored ADR 14,500 545,563
Eramet SA 35,000 2,668,987
Generale des Eaux 4,078 443,124
Michelin SA (Compagnie Generale des
Etablissements) Class B 47,000 2,327,282
Pechiney SA Class A 65,200 3,069,644
Segin SA 3,000 369,490
Seita 30,867 1,187,651
Stolt Comex Seaway SA (a) 10,900 147,150
Total SA:
Class B 31,671 2,147,529
sponsored ADR 20,000 685,000
Usinor Sacilor 13,400 207,140
19,857,086
GERMANY - 3.9%
Asko 800 475,273
Bayer AG 4,600 1,480,529
Continental Gummi-Werke AG 50,000 863,392
Daimler-Benz AG Ord. 1,000 547,413
Deutsche Bank AG 35,000 1,676,481
Hornbach Baumarket AG (Bearer) 5,000 189,326

SHARES VALUE (NOTE 1)
Karstadt AG 2,500 $ 933,246
Mannesmann AG Ord. 1,200 409,727
Veba AG Ord. 67,000 3,328,676
Volkswagen AG 1,700 586,551
10,490,614
HONG KONG - 0.6%
Cheung Kong Holdings Ltd. 36,000 257,120
Consolidated Electric Power Asia Ltd. 50,000 82,733
HSBC Holdings PLC 29,800 441,764
New World Development Co. 22,000 98,685
Peregrine Investments Holdings Ltd. 400,000 617,914
1,498,216
ITALY - 0.5%
Italcementi Fabbriche Ruinite Cemento
Spa, Bergamo 5,000 36,312
SAI Sta Assieuratrice Industriale Spa 30,000 322,375
Stet (Societa Finanziaria Telefonica)
Spa Ord. 240,000 810,335
Telecom Italia Spa 30,000 61,010
Telecom Italia Mobile Spa 30,000 65,812
1,295,844
JAPAN - 33.9%
Acom Co. Ltd. 19,000 713,708
Aiwa Co. Ltd. 3,000 69,041
Akita Bank Ltd. 35,000 259,617
Aoki International Co. Ltd. 10,000 242,499
Amway Japan Ltd. 10,000 256,250
Aoyama Trading Co. Ord. 40,000 1,251,486
Asahi Bank Ltd. ADR 13,000 166,896
Bank of Tokyo-Mitsubishi Ltd. 68,250 1,570,681
Bridgestone Corp. 60,000 1,106,937
Canon, Inc. 95,000 1,879,131
Canon, Inc. ADR representing 5 shares 5,000 497,500
Citizen Watch Co. Ltd. Ord. 15,000 130,522
Dai-Ichi Kangyo Bank 10,000 202,558
DDI Corp. Ord. 50 427,464
Dai-Tokyo Fire & Marine Insurance Ord. 170,000 1,328,895
Daiwa House Industry Co. Ltd. 150,000 2,382,198
Daiwa Securities Co. Ltd. 170,000 2,602,824
Denki Kagaku Kogyo Kk 60,000 231,087
Daito Trust Construction 81,000 1,193,952
Descente Ltd. 40,000 291,760
Dowa Fire & Marine Industries Co. Ltd. 137,000 819,486
Eighteenth Bank 15,000 148,352
Fuji Bank Ltd. 80,000 1,742,190
Fuji Photo Film Co. Ltd. 70,000 2,170,130
Fuji Photo Film Ltd. ADR 10,000 621,250
Fujitsu Ltd. 5,000 51,353
Fukuyama Transporting Co. Ltd. 15,000 161,191
Fuji Electric Co. Ltd. 100,000 576,292
Higashi Nihon House Co. Ltd. 30,000 484,998
Hitachi Koki Co. Ltd. Ord. 150,000 1,583,377
Hitachi Ltd. 351,000 3,771,860
Hitachi Ltd. ADR 5,000 538,125
Hitachi Maxell Ltd. 90,000 1,934,287
Honda Motor Co. Ltd. 60,000 1,363,701
Honda Motor Co. Ltd. ADR 7,000 316,750
Hoya Corp. 5,000 175,931
Ito-Yokado Co. Ltd. 45,000 2,640,388
Ito-Yokado Co. ADR (New) 1,000 235,500
Izumiya Co. Ltd. 30,000 570,586
Jusco Co. Ltd. 50,000 1,540,583
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
JAPAN - CONTINUED
Kobe Steel Ltd. Ord. (a) 500,000 $ 1,545,338
Komatsu Ltd. Ord. 100,000 960,487
Konica Corp. 50,000 389,901
Kyocera Corp. 4,000 299,748
Makita Corp. 50,000 803,576
Marui Co. Ltd. 10,000 219,676
Matsushita Electric Industrial Co. Ltd. 150,000 2,638,961
Maruichi Steel Tube Ltd. 10,000 210,166
Minolta Camera Co. Ltd. 30,000 182,588
Mitsubishi Electric Co. Ord. 270,000 2,115,734
Mitsubishi Heavy Industries Ltd. 70,000 621,749
Mitsubishi Trust & Banking Corp. 33,000 568,019
Mitsui Marine & Fire Insurance Co. 30,000 253,055
Mitsui Trust and Banking Co. Ltd. 85,000 1,018,496
NKK Corp. (a) 200,000 623,841
NEC Corp. 3,000 37,944
Namco Ltd. 16,000 526,461
National House Industrial Co. Ltd. 63,000 1,108,364
Nifco, Inc. 5,500 76,886
Nintendo Co. Ltd. Ord. 3,000 230,517
Nippon Shokubai Co. Ltd. 138,000 1,496,077
Nippon Suisan Kaisha Ltd. (a) 200,000 888,213
Nissan Motor Co. Ltd. Ord. 10,000 84,066
Nitto Denko Corp. 40,000 642,861
Nomura Securities Co. Ltd. 105,000 2,276,639
Nichicon Corp. 20,000 330,940
Nichiei Co. Ltd. 15,000 998,526
Nippon Zeon Co. Ltd. 95,000 603,490
Nissan Fire & Marine Insurance Co. Ltd. 30,000 235,937
Omron Corp. 100,000 2,244,306
Promise Co. Ltd. 12,000 507,822
Ricoh Co. Ltd. Ord. 80,000 935,761
Riken Vinyl Industry Co. Ltd. 70,000 725,596
Rohm Co. Ltd. 3,000 190,005
Sakura Bank Ltd. 110,000 1,286,672
Sankyo Co. Ltd. 20,000 483,096
Sanwa Bank Ltd. 20,000 403,214
Sanyo Electric Co. Ltd. 10,000 63,525
Sekisui House Ltd. 150,000 1,854,405
Sekisui Chemical Co. Ltd. 90,000 1,129,761
Shimamura Corp. 10,000 447,910
Shimachu Co. Ltd. 25,000 843,992
Shimizu Construction Co. Ltd. 25,000 285,293
Shin-Etsu Chemical Co. Ltd. 15,750 342,994
Sony Corp. ADR 5,000 322,500
Sony Corp. 40,000 2,586,658
Sumitomo Bank Ltd. 25,000 532,547
Sumitomo Trust & Banking Co. Ltd. 40,000 581,998
Sumitomo Forestry Co. Ltd. 20,000 306,215
Sumitomo Marine and Fire Insurance
Co. Ltd. 20,000 189,435
TDK Corp. 32,000 1,822,833
Takeda Chemical Industries Ltd. 132,000 2,272,074
Tokai Bank Ltd. 30,000 382,293
Tokio Marine & Fire Insurance Co.
Ltd. (The) 15,000 205,411
Toshiba Corp. 5,000 38,705
Toyo Ink Manufacturing Co. Ltd. 150,000 927,203
Toyota Motor Corp. ADR 10,000 455,000
Toyota Motor Corp. 95,000 2,159,194
Tostem Corp. 25,000 772,669
Uny Co. Ltd. 70,000 1,351,338
Wako Electric Co. Ltd. 10,000 194,950
Yamanouchi Pharmaceutical Co. Ltd. 75,000 1,768,817

SHARES VALUE (NOTE 1)
York Benimaru Co. 33,200 $ 1,326,042
Yoshinoya D&C Co. Ltd. Ord. 20 283,391
90,463,217
KOREA (SOUTH) - 0.2%
Korea Electric Power Corp. 10,000 477,700
MEXICO - 0.0%
Telefonos de Mexico SA sponsored
ADR representing shares Ord. Class L 1,000 34,000
NETHERLANDS - 2.8%
AKZO NV 7,800 905,865
DSM NV 5,000 510,651
Hoogovens en Staalfabrieken 100 3,764
ING Groep NV 20,000 1,544,208
KLM Royal Dutch Air Lines NV 204 6,846
Royal Dutch Petroleum Co.:
ADR (NY Reg.) 11,000 1,575,750
Ord. 10,000 1,424,570
Royal Ptt Nederland NV 10,000 375,255
Unilever NV ADR 1,000 136,500
Vendex International NV 30,000 859,644
7,343,053
NORWAY - 2.0%
Den Norske Bank Class A Free shares 285,000 819,358
Elkem A/S 10,000 132,339
Fokus Bank AS (a) 7,100 38,232
Fokus Bank AS (a)(b) 4,000 21,539
Helikopter Services AS 40,000 453,297
Norsk Hydro AS ADR 30,000 1,380,000
Smedvig AS 4,800 117,918
Schibsted AS, Series B 25,000 365,072
Saga Petroleum AS Class B 20,000 270,762
Transocean Drilling AS (a) 63,600 1,780,090
5,378,607
RUSSIA - 0.0%
Mosenergo AO sponsored ADR (b) 3,000 36,000
SPAIN - 2.7%
Banco Bilbao Vizcaya SA Ord. (Reg.) 40,000 1,518,888
Banco de Santander SA Ord. (Reg.) 20,000 928,297
FOCSA (Fomento Construcciones y
Contratas SA) 12,000 1,022,540
Prosegur Comp Securidad SA (Reg.) 17,600 641,357
Repsol SA:
Ord. 10,000 366,371
sponsored ADR 7,000 259,000
Tabacalera SA, Series A 35,000 1,594,283
Telefonica de Espana SA Ord. 55,000 978,363
7,309,099
SWEDEN - 5.5%
Atlas Copco AB Class A Free shares 3,000 56,312
Autoliv AB 30,000 1,634,143
Electrolux AB 35,000 1,762,225
Esselte AB Class B Free shares 84,000 1,681,843
Marieberg Tidnings Class A Free shares 16,700 390,914
Scania AB:
Class A (a) 7,500 207,580
Class B (a) 65,500 1,808,047
Svedala Industri Free shares 25,000 894,362
Swedish Match AB (a)(c) 150,000 386,453
Volvo AB:
Class B 235,100 5,382,080
ADR Class B 20,000 455,000
14,658,959
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
SWITZERLAND - 0.5%
Kuoni Reisen Holding AG Class B (Reg.) 200 $ 401,768
Nestle SA (Reg.) 700 776,778
Swisslog Holding AG (Reg.) 350 111,933
1,290,479
UNITED KINGDOM - 5.1%
Bass PLC Ord. 90,000 1,062,873
British Petroleum PLC:
ADR 4,500 491,625
Ord. 201,833 1,823,813
Caradon PLC 198,700 688,851
Christies International PLC 249,900 830,567
Cookson Group PLC 250,000 1,190,767
Courtaulds PLC Ord. 29,700 191,602
Eurocamp PLC 18,000 65,115
Guinness PLC Ord. 67,800 488,492
ICI (Imperial Chemical Industries) PLC Ord. 40,000 542,628
Lex Service PLC Ord. 200,000 1,100,329
London Clubs International PLC 10,000 82,299
RTZ PLC Ord. (New) 50,600 797,778
Rugby Group 18,700 36,079
Shanks & McEwan Group PLC 500,000 783,796
Shell Transport & Trading Co. PLC:
ADR (New) 12,000 960,000
(Reg.) 82,300 1,087,305
Unilever PLC Ord. 30,000 549,863
Wickes PLC 455,000 894,997
13,668,779
UNITED STATES OF AMERICA - 1.3%
Aluminum Co. of America 10,000 623,750
Caliber System, Inc. 10,000 401,250
Duriron Co., Inc. 10,000 262,500
Freeport McMoRan Copper & Gold, Inc.:
Class A 10,000 316,250
Class B 10,000 328,750
Limited, Inc. (The) 25,229 523,503
Reynolds Metals Co. 11,000 591,250
Wal-Mart Stores, Inc. 20,000 477,500
3,524,753
TOTAL COMMON STOCKS
(Cost $183,377,387) 194,636,018
PREFERRED STOCKS - 1.6%
CONVERTIBLE PREFERRED STOCKS - 0.4%
JAPAN - 0.4%
AJL PEPS Trust exchangeable 43,500 967,875
NONCONVERTIBLE PREFERRED STOCKS - 1.2%
AUSTRIA - 0.5%
Creditanstalt Bankverein 25,000 1,394,367
GERMANY - 0.4%
Porsche AG (a) 800 437,147
Volkswagen AG 4% 2,000 507,916
945,063

SHARES VALUE (NOTE 1)
ITALY - 0.2%
Italmobiliare Spa (Milano) 10,000 $ 82,947
Stet (Societa Finanziaria Telefonica) Spa 225,000 589,109
672,056
UNITED STATES OF AMERICA - 0.1%
Freeport McMoran Copper & Gold, Inc.:
Series B 5,000 179,375
depositary shares representing
gold pfd., Series II 5,000 167,500
346,875
TOTAL NONCONVERTIBLE PREFERRED STOCKS 3,358,361
TOTAL PREFERRED STOCKS
(Cost $4,224,048) 4,326,236
CONVERTIBLE BONDS - 0.6%
MOODY'S PRINCIPAL VALUE
RATINGS AMOUNT (C) (NOTE 1)
BERMUDA - 0.2%
MBL International Finance
of Bermuda 3%, 11/30/02 Aa3 $ 600,000 693,000
CANADA - 0.2%
Horsham Corp. 3%,
1/29/21 - 500,000 522,500
JAPAN - 0.1%
Matsushita Electric Works Co.
Ltd. 2.70%, 5/31/02 - JPY 15,000,000 181,018
UNITED STATES OF AMERICA - 0.1%
Unisys Corp. 8 1/4%,
3/15/06 B3 216,000 237,600
TOTAL CONVERTIBLE BONDS
(Cost $1,603,938) 1,634,118
GOVERNMENT OBLIGATIONS - 0.9%
UNITED STATES OF AMERICA - 0.9%
U.S. Treasury Obligations:
6 1/2%, 5/15/97 (e) Aaa 390,000 392,987
8 3/4%, 10/15/97 Aaa 370,000 384,511
9 1/4%, 8/15/98 (e) Aaa 370,000 394,339
8 7/8%, 11/15/98 Aaa 404,000 429,315
8 7/8%, 2/15/99 Aaa 370,000 394,916
9 1/8%, 5/15/99 Aaa 360,000 388,123
TOTAL GOVERNMENT OBLIGATIONS
(Cost $2,410,021) 2,384,191
REPURCHASE AGREEMENTS - 23.9%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.33%, dated
4/30/96 due 5/1/96 (Note 3) $ 63,605,416 $ 63,596,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $255,211,394) $ 266,576,563
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
PURCHASED
100 Nikkei 225 Stock Index
Contracts June 1996 $ 11,072,500 $ 945,676
THE FACE VALUE OF FUTURES PURCHASED AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 4.2%
CURRENCY ABBREVIATIONS
JPY - Japanese yen
LEGEND
(a) Non-income producing
(b) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $1,843,405 or 0.7% of net
assets.
(c) Security purchased on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
(d) Principal amount stated in United States dollars unless otherwise
noted.
(e) A portion of the security was pledged to cover margin requirements for
futures contracts. At the period end, the value of securities pledged
amounted to $659,432.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $185,512,727 and $43,373,121, respectively, of which U.S.
government and government agency obiligation aggregated $433,905 and
$402,633, respectively.
The market value of futures contracts opened and closed during the period
amounted to $30,038,576 and $26,029,687, respectively (see Note 2 of Notes
to Financial Statements).
The fund placed a portion of its portfolio transactions with brokerage
firms which are affiliates of FMR. The commissions paid to these affiliated
firms were $20,777 for the period (see Note 5 of Notes to Financial
Statements).
INCOME TAX INFORMATION
At April 30, 1996, the aggregate cost of investment securities for income
tax purposes was $255,228,892. Net unrealized appreciation aggregated
$11,347,671, of which $13,682,500 related to appreciated investment
securities and $2,334,829 related to depreciated investment securities.
INDUSTRY DIVERSIFICATION
As a Percentage of Total Value of Investment in Securities
Basic Industries 10.2%
Construction & Real Estate 4.1
Durables 11.7
Energy 5.0
Finance 13.1
Government Obligations 0.9
Health 1.8
Holding Companies 1.2
Industrial Machinery & Equipment 5.7
Media & Leisure 0.8
Nondurables 3.8
Precious Metals 0.4
Repurchase Agreements 23.9
Retail & Wholesale 5.7
Services 0.6
Technology 7.0
Transportation 0.4
Utilities 3.7
100.0%
INTERNATIONAL VALUE
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996 (UNAUDITED)

ASSETS

Investment in $ 266,576,563
securities, at
value
(including
repurchase
agreements
of
$63,596,000)
(cost
$255,211,394
) - See
accompanyin
g schedule

Cash 884

Receivable for 1,259,788
investments
sold

Receivable for 1,873,375
fund shares
sold

Dividends 780,579
receivable

Interest 73,573
receivable

Receivable for 70,000
daily
variation on
futures
contracts

TOTAL ASSETS 270,634,762

LIABILITIES

Payable for $ 5,611,331
investments
purchased
Regular
delivery

Delayed 465,531
delivery

Payable for 1,184,536
fund shares
redeemed

Accrued 163,523
management
fee

Other payables 152,895
and
accrued
expenses

TOTAL 7,577,816
LIABILITIES

NET ASSETS $ 263,056,946

Net Assets
consist of:

Paid in capital $ 244,387,539

Undistributed 1,475,900
net
investment
income

Accumulated 4,883,718
undistributed
net realized
gain (loss) on
investments
and foreign
currency
transactions

Net unrealized 12,309,789
appreciation
(depreciation
) on
investments
and assets
and liabilities
in
foreign
currencies

NET ASSETS, for $ 263,056,946
22,716,204
shares
outstanding

NET ASSET $11.58
VALUE,
offering price

and
redemption
price per
share
($263,056,94
6 (divided by)
22,716,204
shares)

STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)

INVESTMENT $ 1,473,076
INCOME
Dividends

Interest 1,286,072

2,759,148

Less foreign (199,477
taxes )
withheld

TOTAL 2,559,671
INCOME

EXPENSES

Management $ 600,249
fee
Basic fee

Performance 26,003
adjustment

Transfer agent 219,432
fees

Accounting 60,115
fees and
expenses

Non-interested 158
trustees' com
pensation

Custodian fees 81,372
and
expenses

Registration 49,594
fees

Audit 19,093

Legal 251

Miscellaneous 332

Total 1,056,599
expenses
before
reductions

Expense (5,858 1,050,741
reductions )

NET 1,508,930
INVESTMENT
INCOME

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

Investment 4,195,066
securities

Foreign (16,224
currency )
transactions

Futures 806,358 4,985,200
contracts

Change in net
unrealized
appreciation
(depreciation
) on:

Investment 9,766,869
securities

Assets and 628
liabilities in
foreign
currencies

Futures 957,753 10,725,250
contracts

NET GAIN (LOSS) 15,710,450

NET INCREASE $ 17,219,380
(DECREASE)
IN NET ASSETS
RESULTING
FROM
OPERATIONS

OTHER $ 59,201
INFORMATION
Accounting
fees paid to
FSC

Expense $ 5,528
reductions
Directed
brokerage
arrangement
s

Transfer 330
agent
interest
credits

$ 5,858

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS SIX MONTHS NOVEMBER 1,
ENDED 1994
APRIL 30, 1996 (COMMENCEMENT
(UNAUDITED) OF
OPERATIONS) TO
OCTOBER 31,
1995

Operations $ 1,508,930 $ 510,464
Net
investment
income

Net realized 4,985,200 1,988,292
gain (loss)

Change in 10,725,250 1,584,539
net
unrealized
appreciation
(depreciation
)

NET INCREASE 17,219,380 4,083,295
(DECREASE)
IN NET
ASSETS
RESULTING
FROM
OPERATIONS

Distributions to (56,772) -
shareholders
From net
investment
income

From net (1,703,168) -
realized gain

TOTAL (1,759,940) -
DISTRIBUTION
S

Share 392,951,590 164,834,882
transactions
Net proceeds
from sales of
shares

Reinvestmen 1,730,074 -
t of
distributions

Cost of (203,912,358) (112,089,977)
shares
redeemed

NET INCREASE 190,769,306 52,744,905
(DECREASE)
IN NET
ASSETS
RESULTING
FROM SHARE
TRANSACTIO
NS

TOTAL 206,228,746 56,828,200
INCREASE
(DECREASE)
IN NET ASSETS

NET ASSETS

Beginning of 56,828,200 -
period

End of period $ 263,056,946 $ 56,828,200
(including
undistribute
d net
investment
income of
$1,475,900
and
$36,632,
respectivel
y)

OTHER
INFORMATION
Shares

Sold 35,782,734 16,269,212

Issued in 160,044 -
reinvestment
of
distributions

Redeemed (18,575,110) (10,920,676)

Net increase 17,367,668 5,348,536
(decrease)

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

</TABLE>

FINANCIAL HIGHLIGHTS
SIX MONTHS NOVEMBER 1,
ENDED 1994
APRIL 30, 1996 (COMMENCEMENT
OF
OPERATIONS) TO
OCTOBER 31,

SELECTED PER-SHARE DATA UNAUDITED 1995

Net asset $ 10.63 $ 10.00
value,
beginning of
period

Income from
Investment
Operations

Net .07 .11 D
investment
income

Net realized 1.19 .52
and
unrealized
gain (loss)

Total from 1.26 .63
investment
operations

Less (.01) -
Distributions
From net
investment
income

From net (.30) -
realized gain

Total (.31) -
distributions

Net asset $ 11.58 $ 10.63
value, end of
period

TOTAL RETURN B, 12.06% 6.30%
C

RATIOS AND
SUPPLEMENT
AL DATA

Net assets, $ 263,057 $ 56,828
end of period
(000 omitted)

Ratio of 1.35% A 1.72%
expenses to
average net
assets

Ratio of net 1.93% A 1.08%
investment
income to
average net
assets

Portfolio 74% A 109%
turnover rate

Average $ .0348
commission
rate E

ANNUALIZED
TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED DURING THE PERIODS
SHOWN (SEE NOTE 7 OF NOTES TO FINANCIAL
STATEMENTS).
NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES OUTSTANDING DURING THE
PERIOD.
FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1,
1995, A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE
COMMISSION RATE PER SHARE FOR SECURITY TRADES ON
WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY
VARY FROM PERIOD TO PERIOD AND FUND TO FUND
DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS
MARKETS WHERE TRADING PRACTICES AND COMMISSION
RATE STRUCTURES MAY DIFFER.

OVERSEAS
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (income) and capital gains (the profits the
fund earns when it sells securities that have grown in value). Prior to
July 1, 1995, the fund imposed a 3% sales charge. If this sales charge were
taken into account, total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED PAST 6 PAST 1 PAST 5 PAST 10
APRIL 30, 1996 MONTHS YEAR YEARS YEARS

OVERSEAS 10.91% 14.39% 52.36% 162.62%

Morgan Stanley Capital 13.21% 11.40% 52.70% 174.41%
International EAFE Index

International Funds Average 11.95% 15.95% 61.73% 178.29%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, five years, or 10
years. For example, if you invested $1,000 in a fund that had a 5% return
over the past year, the value of your investment would be $1,050. You can
compare the fund's returns to the performance of the Morgan Stanley Capital
International EAFE Index - a broad measure of the performance of stocks in
Europe, Australia, and the Far East. To measure how the fund's performance
stacked up against its peers, you can compare it to the International funds
average, which reflects the performance of 316 funds with similar
objectives tracked by Lipper Analytical Services over the past six months.
These benchmarks include reinvested dividends and capital gains, if any,
and exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED PAST 1 PAST 5 PAST 10
APRIL 30, 1996 YEAR YEARS YEARS

OVERSEAS 14.39% 8.79% 10.14%

Morgan Stanley Capital 11.40% 8.83% 10.62%
International EAFE Index

International Funds Average 15.95% 9.95% 10.54%

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year. (Note: Lipper calculates average annual total
returns by annualizing each fund's total return, then taking the arithmetic
average. This may produce a slightly different figure than that obtained by
averaging the cumulative total returns and annualizing the result.)
$10,000 OVER TEN YEARS
IMAHDR PRASUN SHR__CHT 19960430 19960522 161857 S00000000000001
Overseas MS EAFE Index
00094 MS001
1986/04/30 10000.00 10000.00
1986/05/31 9681.50 9555.54
1986/06/30 10437.45 10206.10
1986/07/31 11615.50 10836.25
1986/08/31 12386.80 11903.93
1986/09/30 11811.20 11781.47
1986/10/31 10326.17 10994.42
1986/11/30 11293.17 11628.40
1986/12/31 11852.55 12244.51
1987/01/31 13676.59 13545.63
1987/02/28 14115.41 13951.01
1987/03/31 15711.51 15094.21
1987/04/30 16886.01 16691.34
1987/05/31 16821.47 16691.28
1987/06/30 15638.38 16159.50
1987/07/31 15870.69 16131.27
1987/08/31 17191.46 17340.83
1987/09/30 16980.65 17067.82
1987/10/31 13293.70 14601.83
1987/11/30 13186.14 14820.85
1987/12/31 14029.59 15260.93
1988/01/31 13484.12 15533.40
1988/02/29 13912.28 16568.81
1988/03/31 14756.87 17587.55
1988/04/30 15143.98 17843.13
1988/05/31 14838.99 17271.15
1988/06/30 14416.69 16815.92
1988/07/31 14229.00 17343.49
1988/08/31 13800.84 16215.85
1988/09/30 14316.98 16924.39
1988/10/31 14838.99 18372.48
1988/11/30 15226.09 19466.86
1988/12/31 15188.00 19575.40
1989/01/31 15374.09 19919.82
1989/02/28 15776.31 20022.21
1989/03/31 15638.23 19629.25
1989/04/30 15974.41 19811.30
1989/05/31 15206.01 18733.50
1989/06/30 14761.77 18418.15
1989/07/31 16226.54 20730.97
1989/08/31 15848.34 19798.62
1989/09/30 16694.79 20700.48
1989/10/31 15788.31 19868.79
1989/11/30 16682.78 20867.59
1989/12/31 17759.86 21637.54
1990/01/31 17356.80 20832.45
1990/02/28 16997.82 19378.45
1990/03/31 17558.33 17359.68
1990/04/30 17514.24 17221.92
1990/05/31 18704.53 19186.96
1990/06/30 19038.31 19017.96
1990/07/31 19976.69 19285.84
1990/08/31 17766.15 17413.03
1990/09/30 15794.94 14986.27
1990/10/31 17300.12 17321.41
1990/11/30 16727.01 16299.65
1990/12/31 16587.28 16563.70
1991/01/31 16955.29 17099.46
1991/02/28 17570.87 18932.50
1991/03/31 16995.43 17795.94
1991/04/30 17236.32 17970.69
1991/05/31 17269.77 18158.21
1991/06/30 16185.81 16823.93
1991/07/31 17069.04 17650.52
1991/08/31 17196.17 17292.07
1991/09/30 17952.26 18266.63
1991/10/31 18012.48 18525.58
1991/11/30 17363.45 17660.72
1991/12/31 18016.01 18572.78
1992/01/31 18222.84 18176.07
1992/02/29 17844.83 17525.51
1992/03/31 17473.96 16368.54
1992/04/30 18536.66 16446.35
1992/05/31 19335.47 17547.19
1992/06/30 18879.01 16714.89
1992/07/31 17680.79 16287.10
1992/08/31 17531.02 17308.64
1992/09/30 16803.53 16966.85
1992/10/31 15662.37 16076.86
1992/11/30 15583.92 16228.14
1992/12/31 15952.14 16312.08
1993/01/31 16417.08 16310.08
1993/02/28 16753.76 16802.75
1993/03/31 17892.05 18267.37
1993/04/30 19134.55 20000.99
1993/05/31 19575.44 20423.41
1993/06/30 19110.51 20104.77
1993/07/31 19984.27 20808.53
1993/08/31 21114.54 21931.84
1993/09/30 20930.17 21438.17
1993/10/31 21771.87 22098.84
1993/11/30 20777.87 20167.17
1993/12/31 22341.63 21623.38
1994/01/31 23929.90 23451.54
1994/02/28 23481.92 23386.59
1994/03/31 22805.89 22379.29
1994/04/30 23571.52 23328.83
1994/05/31 23270.16 23194.89
1994/06/30 22960.65 23522.68
1994/07/31 23604.10 23748.90
1994/08/31 23946.19 24311.16
1994/09/30 23286.44 23545.46
1994/10/31 23758.85 24329.52
1994/11/30 22781.46 23160.24
1994/12/31 22625.55 23305.27
1995/01/31 21655.89 22409.98
1995/02/28 21672.46 22345.67
1995/03/31 22318.91 23739.39
1995/04/30 22957.06 24632.20
1995/05/31 23280.29 24338.57
1995/06/30 23454.33 23911.75
1995/07/31 24506.87 25400.41
1995/08/31 23827.28 24431.47
1995/09/30 24158.79 24908.62
1995/10/31 23678.10 24239.07
1995/11/30 23943.31 24913.49
1995/12/31 24674.35 25917.27
1996/01/31 25141.18 26023.66
1996/02/29 25192.11 26111.64
1996/03/31 25565.58 26666.15
1996/04/30 26261.59 27441.42
IMATRL PRASUN SHR__CHT 19960430 19960522 161902 R00000000000123

Let's say you invested $10,000 in Fidelity Overseas Fund on April 30, 1986.
By April 30, 1996, the value of your investment would have grown to $26,262
- - a 162.62% increase on your initial investment. That compares to $10,000
invested in the Morgan Stanley Capital International EAFE Index, which
would have grown to $27,441 over the same period - a 174.41% increase.

NOTE TO SHAREHOLDERS: On March 26,1996, Rick Mace (right photo) replaced
John Hickling as manager of the fund. The following is an interview with
John Hickling covering the period through March 26, followed by Rick Mace's
outlook.
Q. HOW DID THE FUND PERFORM, JOHN?
J.H. As of April 30, 1996, the fund had a total return of 10.91% for the
past six months and 14.39% for the past year. For the same periods, the
Morgan Stanley Capital International EAFE Index - which tracks the
performance of stocks in Europe, Australia and the Far East - returned
13.21% and 11.40%, respectively. Additionally, the Lipper international
funds average stood at 11.95% for the six month period and 15.95% for the
year.
Q. WHY DID THE FUND UNDERPERFORM, JOHN?
J.H. First, the fund's returns were hurt by exchange rate fluctuations.
Second, the fund's cash inflows surged over the past few months as the
fund's nearly 20% cash position at the end of the period held back
performance during a period of relatively strong stock market gains.
Additionally, the performance of Japanese stocks was quite mixed. While
these stocks did fairly well in local currency, they were rather
disappointing in dollar terms. Finally, I did not take advantage of a short
rally in Japanese bank stocks in the fourth quarter of 1995. At the time, I
did not believe the banks had attractive fundamentals and, thus, did not
consider their stocks a good buy.
Q. HOW DID YOU POSITION THE FUND DURING THE PERIOD?
J.H. Relative to the fund's benchmark index, it was overweighted in Europe
and underweighted in Japan. This was because Japan had mixed performance,
and European stocks bottomed early in the fourth quarter of 1995 and then
proceeded to turn in strong performance for the past six months.
Q. ALTHOUGH A WEAK YEN HURT RETURNS OF JAPANESE STOCKS IN DOLLAR TERMS, THE
CURRENCY'S DEPRECIATION SEEMS TO HAVE HELPED JAPANESE MULTINATIONAL
COMPANIES . . .
J.H. The weak yen gave Japanese multinational companies a competitive
advantage against the rest of the world because their overseas profits were
not adversely affected when translated back into yen. For the most part, my
Japanese holdings fell into the consumer, retail, textile and apparel
areas.
Q. WHAT HAPPENED WITH EUROPEAN STOCKS?
J.H. Europe is very exciting right now, but it was tremendously undervalued
last October. Most times when market sentiment is bad, it usually means the
market has bottomed and an astute investor can buy some very inexpensive
stocks. Additionally, at the time, I believed European currencies would
weaken, interest rates would continue to trend downward and company
managements would continue to cut costs. Fortunately, each of these came to
pass and many European stocks have done very well.
Q. MORE SPECIFICALLY, WHAT ARE SOME COMMON THEMES ACROSS INDIVIDUAL
EUROPEAN COMPANIES THAT HAVE INFLUENCED THEIR STOCK PRICES?
J.H. Many companies are just doing the right things. During the period, we
saw a good deal of mergers and acquisitions, restructuring, divestitures,
cost cutting, retirement of debt, management incentives and actions to
raise productivity. For example, Ciba-Geigy and Sandoz announced a $30
billion merger that would create a pharmaceutical juggernaut. Daimler-Benz
divested itself from its unprofitable venture with Fokker. Michelin also
undertook a dramatic change in strategy. The French tire giant shifted from
a focus on market share to a more profit-driven strategy.
Q. SO DO YOU BELIEVE EUROPEAN COMPANIES HAVE BEEN ABLE TO MAXIMIZE
SHAREHOLDER VALUE MORE SO THAN BEFORE?
J.H. European companies are slowly beginning to realize the importance of
maximizing shareholder value. It wasn't too long ago that most analysts
said that all European managements were interested in were fancy lunches
and nice vacations. Many of these companies are starting to realize that
they don't just compete in Europe, they compete in the world - and if they
don't get their act together and consider the fact that their share price
has a direct impact on the cost of capital, American and Japanese companies
are going to eat their lunches for them.
Q. WHAT WAS YOUR APPROACH TO EMERGING MARKETS?
J.H. Emerging markets also rebounded in the past six months with some of
their stock exchanges leading the world in returns. The fund's holdings in
these markets were spread across Malaysia, Indonesia, Mexico, Brazil,
Argentina, Chile, Hong Kong and Korea.
Q. WERE THERE ANY DISAPPOINTMENTS?
J.H. Aside from what I discussed about Japan, I wish the fund had owned
more cyclical stocks, as they outperformed many of the defensive (consumer)
and financial stocks that I owned. Additionally, had I known how well
emerging markets were going to do, I would have raised the fund's exposure
to them.
Q. TURNING TO YOU, RICK, WHAT HAVE YOU BEEN FOCUSING ON SINCE YOU TOOK OVER
THE FUND?
R.M. So far, I've tried to focus on stocks that could benefit from an
economic recovery. Generally, these include cyclicals, autos, tires,
metals, chemicals, petroleum, oil and oil service. Additionally, I've
trimmed back the fund's holdings in emerging markets. In my opinion, some
of the best emerging market investments are not in emerging markets, but
rather in companies whose stocks trade in developed markets but do business
in emerging markets.
Q. WHAT DO YOU SEE GOING FORWARD?
R.M. I believe there is the potential for economic improvement in many
areas of the world and I hope to position the fund to take advantage of any
recoveries. For the most part, investors can expect a portfolio with larger
positions in a smaller amount of stocks. Therefore, in the next few months
I will concentrate on reducing and reallocating some of the fund's current
positions.

FUND FACTS
GOAL: long-term growth of capital by investing
in equity securities outside the United States
START DATE: December 4, 1984
TRADING SYMBOL: FOSFX
SIZE: as of April 30, 1996, more than
$2.8 billion
MANAGER: Richard Mace, since March 1996;
manager, Fidelity International Value Fund, since
1994; co-manager, Fidelity Global Balanced
Fund, February 1993-December 1993 and
January 1995-March 1996; manager, Fidelity
Global Balanced Fund, since March 1996;
manager, Fidelity International Growth & Income
Fund, 1994-March 1996; manager, Fidelity
Advisor Overseas, VIP: Overseas, Fidelity
Advisor Annuity Overseas, since March 1996;
joined Fidelity in 1987
(checkmark)
RICK MACE ON HIS INVESTING STYLE:
"When I look at a stock, I attempt to establish its worth
as a means of determining what return I can expect
and as a way of comparing potential rewards and
potential risks. I try to minimize surprises by
thoroughly understanding what the downside
possibilities are for each stock I own. I attempt to
select stocks that I believe have two or three times as
much upside potential as downside risk.
"One analogy I often use to describe my style is
imagining if you could go to a store and purchase a
dollar for 80 cents. I try to assess what will cause that
80 cents to become a dollar, how long it will take it to
get there and how much of it to buy. Additionally,
should that 80 cents fall to 70 cents, I will buy more if I
firmly believe it will eventually become a dollar.
"I also focus on a company's cash flow and balance
sheet. I've found that while accounting conventions
vary dramatically from country to country, the items
that are most comparable are cash flows and balance
sheets."
(solid bullet) Asia has the world's highest savings rate and
receives the most foreign capital. According to The
Bank Credit Analyst, Asian savings rates stood at over
30% of GDP and net foreign investment was over $50
billion in 1995.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGERS
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGERS' VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
OVERSEAS
INVESTMENT CHANGES

GEOGRAPHIC DIVERSIFICATION
AS OF APRIL 30, 1996
France 6.3%
United States 19.7%
Row: 1, Col: 1, Value: 19.7
Row: 1, Col: 2, Value: 12.0
Row: 1, Col: 3, Value: 4.4
Row: 1, Col: 4, Value: 3.6
Row: 1, Col: 5, Value: 17.7
Row: 1, Col: 6, Value: 5.2
Row: 1, Col: 7, Value: 23.1
Row: 1, Col: 8, Value: 3.7
Row: 1, Col: 9, Value: 4.3
Row: 1, Col: 10, Value: 6.3
Germany 4.3%
Hong Kong 3.7%
United
Kingdom 12.0%
Japan 23.1%
Sweden 4.4%
Spain 3.6%
Netherlands 5.2%
Other 17.7%
AS OF OCTOBER 31, 1995

France 4.8%
United States 11.1%
Germany 5.8%
Row: 1, Col: 1, Value: 11.1
Row: 1, Col: 2, Value: 14.2
Row: 1, Col: 3, Value: 8.699999999999999
Row: 1, Col: 4, Value: 3.3
Row: 1, Col: 5, Value: 4.2
Row: 1, Col: 6, Value: 19.5
Row: 1, Col: 7, Value: 6.5
Row: 1, Col: 8, Value: 18.8
Row: 1, Col: 9, Value: 3.1
Row: 1, Col: 10, Value: 5.8
Row: 1, Col: 11, Value: 4.8
Italy 3.1%
United Kingdom
14.2%
Japan 18.8%
Switzerland 8.7%
Sweden 3.3%
Netherlands 6.5%
Spain 4.2%
Other 19.5%
ASSET ALLOCATION
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Stocks and closed-end 80.0 88.2
investment companies

Bonds 0.3 0.7

Short-term investments 19.7 11.1

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

Volvo AB Class B 1.5 1.1
(Sweden, Automotive)

Alcatel Alsthom Cie Generale 1.3 0.4
d' Electricite SA
(France, Electric Utilities)

ING Groep NV 1.2 1.0
(Netherlands, Insurance)

Nomura Securities Co. Ltd. 1.1 1.0
(Japan, Securities Industry)

Tokio Marine & Fire Insurance 1.0 0.8
Co. Ltd. (The)
(Japan, Insurance)

Stet (Societa Finanziaria 1.0 0.9
Telefonica) Spa
(Italy, Telephone Services )

Honda Motor Co. Ltd. 1.0 0.7
(Japan, Automotive)

Scania AB Class B 0.9 0.0
(Sweden, Durables)

Toyota Motor Corp. 0.9 0.6
(Japan, Automotive)

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

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

Finance 18.7 24.0

Durables 10.7 7.3

Utilities 7.7 8.8

Nondurables 6.1 8.4

Basic Industries 5.4 5.7

Retail & Wholesale 5.2 5.6

Construction & Real Estate 5.1 3.8

Industrial Machinery & Equipment 4.7 3.3

Technology 4.6 6.0

Energy 4.6 3.1

OVERSEAS
INVESTMENTS APRIL 30, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 77.9%
SHARES VALUE (NOTE 1)
ARGENTINA - 0.9%
Banco de Galicia Y Buenos Aires SA
sponsored ADR representing Class B
shares 118,100 $ 2,775,350
Buenos Aires Embotelladora SA
sponsored ADR 75,800 1,203,325
Perez Companc Class B 764,587 4,756,254
Telecom Argentina Class B
sponsored ADR 207,330 9,381,683
Telecom Argentina Stet France
Telecom SA 473,300 2,139,551
YPF Sociedad Anonima sponsored ADR
representing Class D shares 288,400 6,308,750
26,564,913
AUSTRALIA - 1.2%
Brambles Industries Ltd. 705,500 9,691,815
Coles Myer Ltd. 1,273,900 4,613,238
FAI Insurance Ltd. Ord. 2,003,400 977,850
Fosters Brewing Group Ltd. 1,906,426 3,496,943
Qantas Airways Ltd. sponsored ADR (b) 68,700 1,262,363
Western Mining Holdings Ltd. 936,500 6,841,769
Westpac Banking Corp. 113,081 550,162
Woolworths Ltd. 2,148,100 5,496,048
32,930,188
AUSTRIA - 0.3%
EVN (Energie-Versor Nieder) 26,400 3,858,754
VA Technologie AG 13,900 1,845,938
VA Technologie AG (b) 24,000 3,187,230
8,891,922
BELGIUM - 0.5%
Bekaert SA 10,000 7,733,270
Delhaize Freres & Cie Le Lion SA 130,000 6,426,641
Petrofina SA (warrants) (a) 1,105 10,960
14,170,871
BRAZIL - 0.8%
Brahma (Cia Cervejaria) PN
Class B (Pfd. Reg.) 5,943,000 2,857,816
Coteminas PN 4,900,000 2,054,942
Telebras sponsored ADR 144,200 7,804,825
Telebras PN (Pfd. Reg.) 184,248,415 9,974,435
22,692,018
CANADA - 0.5%
Alcan Aluminium Ltd. 323,000 10,268,272
Midland Walwyn, Inc. 514,100 3,585,735
13,854,007
CHILE - 0.4%
Santa Isabel SA sponsored ADR (a) 232,300 6,707,663
Vina Concha Stet y Toro SA
sponsored ADR 195,900 3,281,325
9,988,988
DENMARK - 0.7%
International Service Systems AS,
Series B 349,400 9,883,096
Unidanmark AS Class A 209,800 9,345,766
19,228,862
FINLAND - 1.3%
America Group Ltd. Class A 15,600 290,050
Cultor OY, Series 1 140,100 5,933,313

SHARES VALUE (NOTE 1)
Huhtamaki Ord. 162,700 $ 5,377,901
Nokia Corp. AB Series A 120,600 4,307,721
Pohjola Class B 725,670 11,468,481
Valmet OY Class A 583,560 8,077,289
35,454,755
FRANCE - 6.3%
Alcatel Alsthom Cie Generale
d'Electricite SA 389,100 36,562,761
Axa SA 305,265 18,173,065
Club Mediterranee SA Ord. 56,400 5,343,387
Elf Aquitaine SA 148,544 11,037,405
Eramet SA 90,857 6,928,461
Generale des Eaux 60,000 6,519,722
IMETAL SA Ord. 75,000 11,731,439
Lafarge Coppee SA 82,800 5,299,072
Michelin SA (Compagnie Generale des
Etablissements) Class B 449,300 22,247,821
Pechiney SA Class A 359,742 16,936,809
Peugeot SA Ord. 33,900 4,732,367
Total SA Class B 358,200 24,288,619
Usinor Sacilor 144,700 2,236,807
Vallourec SA (a) 117,000 5,678,074
177,715,809
GERMANY - 3.9%
Asko 11,900 7,069,692
Bayer AG 23,800 7,660,127
Continental Gummi-Werke AG 493,500 8,521,675
Daimler-Benz AG Ord. 25,400 13,904,292
Deutsche Bank AG 272,100 13,033,443
Hoechst AG Ord. 27,550 9,273,563
Kaufhof Holding AG 21,400 6,664,142
Mannesmann AG Ord. 32,900 11,233,361
Veba AG Ord. 323,400 16,067,074
Volkswagen AG 45,500 15,698,874
109,126,243
HONG KONG - 3.7%
Amoy Properties Ltd. 4,441,000 4,994,596
China Light & Power Co. Ltd. 882,000 4,161,614
Consolidated Electric Power Asia Ltd.
sponsored ADR (b) 70,700 1,148,875
Consolidated Electric Power Asia Ltd. 2,994,000 4,954,070
Dickson Concepts International Ltd. 5,136,000 5,942,216
Great Eagle Holdings Ltd. 1,870,000 5,366,547
HSBC Holdings PLC 1,312,000 19,449,475
Hong Kong & China Gas Co. Ltd. 4,161,600 6,832,261
Hong Kong & China Gas Co. Ltd.
(warrants) (a) 346,800 -
Hong Kong Electric Holdings Ord. 3,372,000 10,723,167
Hong Kong Land Holdings Ltd. 5,043,000 10,792,020
Hong Kong Telecommunications Ltd. 3,694,000 7,018,600
Hopewell Holdings Ltd. 7,748,000 4,732,513
Hysan Development Co. Ltd. 2,783,000 8,940,051
Hysan Development Co. Ltd.
(warrants) (a) 139,150 -
Oriental Press Group Ltd. 6,070,000 2,824,825
Peregrine Investments Holdings Ltd. 2,084,000 3,219,334
Sun Hung Kai Properties Ltd. 288,000 2,745,711
103,845,875
HUNGARY - 0.0%
Borsodchem GDR (rights) (a)(b) 83,800 1,474,880
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
INDONESIA - 0.1%
Bank Niaga PT 254,000 $ 632,682
Matahari Putra Prima PT (For. Reg.) 913,500 1,834,062
Sampoerna Hanjaya Mandala
(For. Reg.) 41,900 463,356
2,930,100
IRELAND - 0.8%
Bank of Ireland, Inc. 1,876,300 13,575,106
Independent Newspapers PLC 940,650 7,798,130
21,373,236
ITALY - 0.9%
Fiat Spa 767,800 2,612,555
Istituto Mobiliare Italiano 600,000 4,757,435
Magneti Marelli Spa 3,114,800 4,688,981
Montedison Spa Ord. (a) 3,026,700 1,841,342
Olivetti & Co. Spa Ord. (a) 8,496,000 5,570,705
SAI (Sta Assieuratrice Industriale) Spa 444,200 4,773,292
24,244,310
JAPAN - 23.0%
Acom Co. Ltd. 43,600 1,637,773
ADO Electronic Industrial Co. Ltd. 76,000 1,951,405
Aida Engineering Ltd. Ord. 336,000 3,195,283
Amada Metrecs Co. Ltd. 317,000 5,215,254
Amadasonoike Co. Ltd. 548,000 4,090,913
Amway Japan Ltd. 150,800 7,729,656
Aoyama Trading Co. Ord. 226,600 7,089,667
Bridgestone Corp. 654,000 12,065,617
Canon, Inc. 1,077,000 21,303,409
Citizen Watch Co. Ltd. Ord. 836,000 7,274,404
Daiwa House Industry Co. Ltd.
(warrants) (a) 875 929,688
Daiwa House Industry Co. Ltd. 1,076,000 17,088,298
Daiwa Securities Co. Ltd. 1,558,000 23,854,119
Dennys Japan Co. Ltd. 127,000 4,806,809
Daito Trust Construction 225,900 3,329,799
East Japan Railway Co. Ord. 1,250 6,644,952
Fanuc Ltd. 182,500 7,896,676
Fuji Bank Ltd. 265,000 5,771,005
Fuji Photo Film Co. Ltd. 543,000 16,834,006
Futaba Industrial Co. Ltd. 264,000 5,196,900
Hanshin Department Store Ltd. 72,000 595,692
Hitachi Ltd. 2,249,000 24,167,847
Hitachi Maxell Ltd. 273,000 5,867,339
Honda Motor Co. Ltd. 1,188,000 27,001,283
Ito-Yokado Co. Ltd. 399,000 23,411,440
Izumiya Co. Ltd. 35,000 665,684
Japan Airlines Co. Ltd. (a) 668,000 5,317,065
Kao Corp. 236,000 3,142,028
Kobe Steel Ltd. Ord. (a) 2,933,000 9,064,952
Komatsu Ltd. Ord. 2,032,000 19,517,093
Komatsu Seiren Co. Ltd. 189,000 2,156,816
Marubeni Corp. 723,000 4,310,979
Marukyo Corp. 55,000 1,014,693
Matsushita Electric Industrial Co. Ltd. 513,000 9,025,248
Minebea Co. Ltd. 1,036,000 9,467,890
Mitsubishi Electric Co. Ord. 1,992,000 15,609,414
Mitsubishi Estate Co. Ltd. 498,000 6,961,723
Mitsubishi Heavy Industries Ltd. 984,000 8,740,012
Mitsui Trust and Banking Co. Ltd. 866,000 10,376,682
Mitsukoshi Ltd. 632,000 6,971,803

SHARES VALUE (NOTE 1)
Nikko Securities Co. Ltd. 1,003,000 $ 12,685,939
Nichido Fire & Marine Insurance
Co. Ltd. 1,197,000 10,017,212
Nippon Shokubai Co. Ltd. 244,000 2,645,238
Nippon Thompson Co. Ltd. 283,000 2,798,916
Nissan Motor Co. Ltd. Ord. 932,000 7,834,986
Nitto Denko Corp. 184,000 2,957,158
Nomura Securities Co. Ltd. 1,417,000 30,723,788
Nomura International PLC (warrants) (a) 1,200 1,065,000
Omron Corp. 293,000 6,575,816
Onward Kashiyama & Co. Ltd. 575,000 9,678,569
Orix Corp. 455,000 18,735,675
Ricoh Co. Ltd. Ord. 1,059,000 12,387,142
Rohm Co. Ltd. 97,000 6,143,502
Sakura Bank Ltd. 110,000 1,286,672
Sankyo Co. Ltd. 357,000 8,623,270
Seino Transportation Co. Ltd. 276,000 4,829,442
Sekisui Chemical Co. Ltd. 641,000 8,046,407
Sony Corp. 168,700 10,909,229
Sumitomo Marine and Fire Insurance
Co. Ltd. 745,000 7,056,440
Sumitomo Realty & Development Co. Ltd. 1,420,000 11,370,263
Sumitomo Trust & Banking Co. Ltd. 623,000 9,064,619
TDK Corp. 103,000 5,867,243
Tadano Ltd. 29,000 278,541
Takashimaya Co. Ltd. 636,000 10,342,447
Takeda Chemical Industries Ltd. 945,000 16,265,988
Tokio Marine & Fire Insurance Co.
Ltd. (The) 2,056,000 28,155,008
Toshiba Corp. 603,000 4,667,795
Toyota Motor Corp. 1,093,000 24,842,090
Tsugami Corp. 353,000 2,114,878
Uny Co. Ltd. 202,000 3,899,577
Yamanouchi Pharmaceutical Co. Ltd. 367,000 8,655,413
647,815,579
KOREA (SOUTH) - 0.6%
Korea Electric Power Corp. 354,760 16,946,882
MALAYSIA - 0.2%
Magnum Corp. BHD 533,000 923,425
TA Enterprise BHD 2,169,000 3,740,405
4,663,830
MEXICO - 1.3%
BANACCI SA de CV:
Class B (a) 890,700 2,056,478
Class L (a) 72,592 149,394
Cemex SA, Series B 2,301,900 9,840,894
Cifra SA Class C (a) 3,236,100 4,311,891
Consorcio G Grupo Dina SA
de CV sponsored ADR 117,200 322,300
Empresas Ica Sociedad Controladora SA
de CV sponsored ADR representing
Ord. participation certificate 403,400 5,597,175
Grupo Carso SA de CV Class A-1 (a) 983,600 7,521,257
Grupo Dina sponsored ADR, Series L 42,244 89,769
Grupo Financiero Bancomer SA de CV:
Class B (a) 10,867,800 4,836,647
Series L (a) 435,177 154,938
sponsored ADR, Series C (a)(b) 189,800 1,660,750
Telefonos de Mexico SA sponsored ADR
representing shares Ord. Class L 1,000 34,000
36,575,493
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
NETHERLANDS - 5.2%
AKZO NV 202,500 $ 23,517,654
DSM NV 59,600 6,086,957
IHC Caland NV 108,400 4,257,555
ING Groep NV 440,678 34,024,919
KLM Royal Dutch Air Lines NV 234,304 7,862,550
Philips Electronics NV (Bearer) 78,500 2,771,666
Pirelli Tyre Holdings NV Ord. (a) 1,063,200 8,810,878
Royal Dutch Petroleum Co. Ord. 170,000 24,217,683
Royal Ptt Nederland NV 411,700 15,449,262
Unilever NV Ord. 99,000 13,508,141
Vendex International NV 38,300 1,097,479
Vendex International NV (b) 144,700 4,146,350
145,751,094
NORWAY - 1.5%
Bergesen Group Class B 160,200 2,753,645
Christiania Bank Free shares Ord. 1,370,700 2,981,573
Den Norske Bank Class A Free shares 2,083,200 5,989,075
Norsk Hydro AS 292,300 13,338,809
Orkla AS Class B (non-vtg.) 110,900 5,060,807
Saga Petroleum AS Class B 478,700 6,480,678
Transocean Drilling AS 222,900 6,238,711
42,843,298
PAKISTAN - 0.0%
Hub Power Co. Ltd. GDR (a) 64,300 1,543,200
PERU - 0.0%
Banco Weise Ltd. sponsored ADR 220,700 1,489,725
SINGAPORE - 0.4%
Kim Engineering Holdings Ltd. 4,752,000 4,934,509
Overseas Union Bank Ltd. (For. Reg.) 509,000 3,946,017
Van Der Horst Ltd. 217,000 1,072,653
9,953,179
SPAIN - 3.6%
Banco Bilbao Vizcaya SA Ord. (Reg.) 641,600 24,362,963
Banco de Santander SA Ord. (Reg.) 409,397 19,002,092
Banco Intercontinental Espanol 113,100 11,884,694
Repsol SA Ord. 272,900 9,998,261
Tabacalera SA, Series A 422,800 19,258,934
Telefonica de Espana SA Ord. 977,000 17,379,291
101,886,235
SWEDEN - 4.4%
Electrolux AB 228,600 11,509,845
Ericsson (L.M.) Telephone Co. Class B 225,500 4,564,744
Esselte AB Class B Free shares 139,100 2,785,051
Investor AB Class B Free shares 300,000 11,968,995
SKF AB Ord. 260,400 6,057,107
Scania AB:
Class A (a) 88,000 2,435,610
Class B (a) 910,000 25,119,432
Skandia Foersaekrings AB 161,500 3,685,288
Skandinaviska Enskilda Banken Class A
Free shares 1,797,700 13,497,538
Volvo AB Class B 1,804,700 41,314,506
122,938,116
SWITZERLAND - 2.6%
Adia SA (Bearer) 26,000 5,682,603
Baloise-Holding (Reg.) 3,215 6,884,673
CIBA-GEIGY AG (Reg.) 15,465 17,906,842

SHARES VALUE (NOTE 1)
Nestle SA (Reg.) 22,275 $ 24,718,180
Roche Holdings Ltd.
participation certificates 2,200 17,262,354
72,454,652
THAILAND - 0.7%
Krung Thai Bank Ltd. (For. Reg.) 1,370,760 6,729,388
Phatra Thanakit PCL (For. Reg.) 400 3,484
Siam City Bank PCL (For. Reg.) 10,568,100 12,656,532
Telecomasia Corp. PCL (For. Reg.) (a) 341,900 893,378
20,282,782
TURKEY - 0.1%
Aksigorta (b) 2,300,000 473,575
Tofas Turk Otomobil Fabrikasi AS 12,825,200 1,379,997
Tofas Turk Otomobil Fabrikasi AS
ADR (b) 586,300 293,150
2,146,722
UNITED KINGDOM - 12.0%
Allied Domecq PLC (a) 811,123 6,278,080
Argyll Group PLC Ord. 12,491 62,508
Associated British Ports PLC Ord. 480,800 2,174,130
BTR PLC Ord. 800 3,859
Barclays PLC Ord. 1,560,400 17,334,173
Barratt Developments PLC 2,241,200 9,104,143
Barratt Developments PLC (rights) (a) 560,300 574,287
Bass PLC Ord. 1,138,200 13,441,795
Berkely Group PLC 938,711 7,923,547
Booker PLC 683,900 3,979,052
Boots Co. PLC (The) 570,500 5,447,559
British Airways PLC Ord. 963,300 7,535,787
British Petroleum PLC Ord. 1,793,800 16,209,249
British Land Co. PLC (The) Ord. 662,216 4,307,053
British Telecommunications PLC Ord. 1,336,500 7,342,876
Cable & Wireless PLC Ord. 1,237,500 9,727,455
Cadbury-Schweppes PLC Ord. 1,976,200 15,340,440
Caradon PLC 1,209,200 4,192,042
Christies International PLC 238,700 793,342
Cookson Group PLC 2,107,300 10,037,213
Courtaulds PLC Ord. 78,100 503,842
Dixons Group PLC 2,240,717 16,650,743
English China Clay PLC 94 413
Grand Metropolitan PLC 2,331,311 15,356,115
Great Universal Stores PLC Ord.
Class A 749,100 8,180,463
Hanson Trust PLC Ord. 1,311,400 3,894,046
Lloyds Abbey Life PLC 1,145,000 9,246,287
Lloyds TSB Group PLC 1,061,779 5,097,336
MFI Furniture Group PLC 2,460,500 6,582,963
Mirror Group Newspaper PLC 3,663,800 12,591,176
National Westminster Bank PLC Ord. 1,693,380 15,633,644
Prudential Corp. PLC 1,398,600 9,644,602
RTZ PLC Ord. 362,500 5,715,305
Redland PLC Ord. 626,400 4,031,618
Rolls Royce PLC Ord. 1,754,399 6,267,241
Royal Insurance Holdings PLC 2,043,300 11,179,914
Rugby Group 213,800 412,494
Scottish Power PLC ADR 211,100 1,185,262
Shell Transport & Trading Co.:
ADR (New) 31,500 2,520,000
PLC (Reg.) 1,254,800 16,577,771
South West Water PLC Ord. 752,100 7,742,763
Unigate Ltd. Ord. 589,500 3,691,939
Vodafone Group PLC 2,373,350 9,497,865
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
UNITED KINGDOM - CONTINUED
United Utilities PLC 621,903 $ 5,568,123
Whitbread Co. PLC Class A 1,048,700 11,871,098
Wickes PLC 1,394,500 2,743,018
Yorkshire Water PLC Ord. 445,300 4,503,767
338,698,398
TOTAL COMMON STOCKS
(Cost $1,859,645,276) 2,190,476,162
PREFERRED STOCKS - 2.1%
CONVERTIBLE PREFERRED STOCKS - 0.1%
JAPAN - 0.1%
AJL PEPS Trust exchangeable 131,300 2,921,425
NONCONVERTIBLE PREFERRED STOCKS - 2.0%
AUSTRIA - 0.3%
Creditanstalt Bankverein 180,300 10,056,174
GERMANY - 0.4%
Porsche AG (a) 6,750 3,688,428
Volkswagen AG 4% 25,900 6,577,509
10,265,937
ITALY - 1.3%
Fiat Spa 2,000,300 3,769,477
SAI (Sta Assicuratrice Industriale) Spa 1,190,200 5,157,175
Stet (Societa Finanziaria Telefonica) Spa 10,599,100 27,751,203
36,677,855
TOTAL NONCONVERTIBLE PREFERRED STOCKS 56,999,966
TOTAL PREFERRED STOCKS
(Cost $47,402,359) 59,921,391
CLOSED-END INVESTMENT COMPANIES - 0.0%
THAILAND - 0.0%
Ruam Pattana Fund II (For. Reg.) 703,600 459,623
Ruang Khao Unit Trust (For. Reg.) 1,350,300 868,713
TOTAL CLOSED-END INVESTMENT COMPANIES
(Cost $977,062) 1,328,336
CONVERTIBLE BONDS - 0.3%
MOODY'S PRINCIPAL VALUE
RATINGS AMOUNT (C) (NOTE 1)
BERMUDA - 0.3%
MBL International Finance
Bermuda 3%, 11/30/02
(Cost $9,095,898) Aa3 $ 8,031,000 9,275,806
REPURCHASE AGREEMENTS - 19.7%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.33%, dated
4/30/96 due 5/1/96 $ 555,139,179 $ 555,057,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $2,472,177,595) $ 2,816,058,695
LEGEND
(a) Non-income producing
(b) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $13,647,173 or 0.5% of net
assets.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $977,038,687 and $954,570,060, respectively.
The fund placed a portion of its portfolio transactions with brokerage
firms which are affiliates of FMR. The commissions paid to these affiliated
firms were $157,702 for the period (see Note 5 of Notes to Financial
Statements).
INCOME TAX INFORMATION
At April 30, 1996, the aggregate cost of investment securities for income
tax purposes was $2,472,793,970. Net unrealized appreciation aggregated
$343,264,725, of which $393,878,402 related to appreciated investment
securities and $50,613,677 related to depreciated investment securities.
INDUSTRY DIVERSIFICATION
As a Percentage of Total Value of Investment in Securities
Aerospace & Defense 0.2%
Basic Industries 5.4
Conglomerates 0.1
Construction & Real Estate 5.1
Durables 10.7
Energy 4.6
Finance 18.7
Holding Companies 0.7
Health 2.4
Industrial Machinery & Equipment 4.7
Media & Leisure 1.2
Nondurables 6.1
Precious Metals 0.2
Repurchase Agreements 19.7
Retail & Wholesale 5.2
Services 1.0
Technology 4.6
Transportation 1.7
Utilities 7.7
100.0%
OVERSEAS
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996 (UNAUDITED)

ASSETS

Investment in $ 2,816,058,695
securities, at
value
(including
repurchase
agreements
of
$555,057,000
) (cost
$2,472,177,5
95) - See
accompanyin
g schedule

Cash 119

Receivable for 50,933,670
investments
sold

Receivable for 12,826,795
fund shares
sold

Dividends 13,686,045
receivable

Interest 100,388
receivable

TOTAL ASSETS 2,893,605,712

LIABILITIES

Payable for $ 51,881,426
investments
purchased

Payable for 6,811,988
fund shares
redeemed

Accrued 1,731,856
management
fee

Other payables 1,445,969
and
accrued
expenses

TOTAL 61,871,239
LIABILITIES

NET ASSETS $ 2,831,734,473

Net Assets
consist of:

Paid in capital $ 2,351,951,472

Undistributed 1,321,618
net
investment
income

Accumulated 134,732,041
undistributed
net realized
gain (loss) on
investments
and foreign
currency
transactions

Net unrealized 343,729,342
appreciation
(depreciation
) on
investments
and assets
and liabilities
in
foreign
currencies

NET ASSETS, for $ 2,831,734,473
91,530,121
shares
outstanding

NET ASSET $30.94
VALUE,
offering price

and
redemption
price per
share
($2,831,734,
473 (divided by)
91,530,121
shares)

STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)

INVESTMENT $ 24,640,623
INCOME
Dividends

Interest 8,802,765

33,443,388

Less foreign (2,991,329
taxes )
withheld

TOTAL 30,452,059
INCOME

EXPENSES

Management $ 9,544,577
fee
Basic fee

Performance (616,726
adjustment )

Transfer agent 3,488,009
fees

Accounting 394,957
fees and
expenses

Non-interested 4,828
trustees'
compensatio
n

Custodian fees 774,560
and
expenses

Registration 151,439
fees

Audit 50,509

Legal 10,791

Miscellaneous 18,628

Total 13,821,572
expenses
before
reductions

Expense (191,831 13,629,741
reductions )

NET 16,822,318
INVESTMENT
INCOME

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

Investment 135,383,817
securities

Foreign (31,881 135,351,936
currency )
transactions

Change in net
unrealized
appreciation
(depreciation
) on:

Investment 109,600,066
securities

Assets and (145,270 109,454,796
liabilities in )
foreign
currencies

NET GAIN (LOSS) 244,806,732

NET INCREASE $ 261,629,050
(DECREASE)
IN NET ASSETS
RESULTING
FROM
OPERATIONS

OTHER $ 391,668
INFORMATION
Accounting
fees paid to
FSC

Expense $ 58,211
reductions
Directed
brokerage
arrangement
s

Custodian 336
interest
credits

Transfer 133,284
agent
interest
credits

$ 191,831

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS SIX MONTHS YEAR ENDED
ENDED OCTOBER 31,
APRIL 30, 1996 1995
(UNAUDITED)

Operations $ 16,822,318 $ 40,446,365
Net
investment
income

Net realized 135,351,936 20,268,754
gain (loss)

Change in 109,454,796 (60,667,177)
net
unrealized
appreciation
(depreciation
)

NET INCREASE 261,629,050 47,942
(DECREASE)
IN NET
ASSETS
RESULTING
FROM
OPERATIONS

Distributions to (27,336,869) (1,572,061)
shareholders
From net
investment
income

From net (18,358,803) (35,371,378)
realized gain

In excess of (9,782,313) -
net realized
gain

TOTAL (55,477,985) (36,943,439)
DISTRIBUTION
S

Share 1,177,595,001 1,320,123,274
transactions
Net proceeds
from sales of
shares

Reinvestmen 53,404,576 36,074,820
t of
distributions

Cost of (881,722,477) (1,326,207,752)
shares
redeemed

NET INCREASE 349,277,100 29,990,342
(DECREASE)
IN NET
ASSETS
RESULTING
FROM SHARE
TRANSACTIO
NS

TOTAL 555,428,165 (6,905,155)
INCREASE
(DECREASE)
IN NET ASSETS

NET ASSETS

Beginning of 2,276,306,308 2,283,211,463
period

End of period $ 2,831,734,473 $ 2,276,306,308
(including
undistribute
d net
investment
income of
$1,321,618
and
$17,366,72
2,
respectivel
y)

OTHER
INFORMATION
Shares

Sold 39,887,500 47,605,509

Issued in 1,869,253 1,345,573
reinvestment
of
distributions

Redeemed (29,890,612) (47,560,838)

Net increase 11,866,141 1,390,244
(decrease)

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

</TABLE>

FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED OCTOBER 31,
ENDED
APRIL 30, 1996

SELECTED PER-SHARE DATA UNAUDITED 1995 1994 D 1993 1992 F 1991

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Net asset $ 28.57 $ 29.17 $ 27.16 $ 21.96 $ 26.92 $ 27.47
value,
beginning of
period

Income from .14 .31 .18 .27 .46 .54 H
Investment
Operations
Net
investment
income

Net realized 2.92 (.44) 2.26 7.40 (3.82) .45
and
unrealized
gain (loss)

Total from 3.06 (.13) 2.44 7.67 (3.36) .99
investment
operations

Less (.34) (.02) (.15) (.37) (.44) (.46)
Distributions
From net
investment
income

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

From net (.23) (.45) (.11) (2.10) E (1.16) (1.08) E
realized gain

In excess of (.12) - - - - -
net realized
gain

Total (.69) (.47) (.43) (2.47) (1.60) (1.54)
distributions

Net asset $ 30.94 $ 28.57 $ 29.17 $ 27.16 $ 21.96 $ 26.92
value, end of
period

TOTAL RETURN B, 10.91% (.34)% 9.13% 39.01% (13.05)% 4.12%
C

RATIOS AND
SUPPLEMENT
AL DATA

Net assets, $ 2,831,734 $ 2,276,306 $ 2,283,211 $ 1,490,666 $ 801,845 $ 969,436
end of period
(000 omitted)

Ratio of 1.12% A 1.05% 1.24% 1.27% 1.52% 1.53%
expenses to
average net
assets

Ratio of 1.10% A, 1.05% 1.24% 1.27% 1.52% 1.53%
expenses to G
average net
assets after
expense
reductions

Ratio of net 1.36% A 1.78% .90% 1.00% 1.78% 2.19%
investment
income to
average net
assets

Portfolio 88% A 49% 49% 64% 122% 132%
turnover rate

Average $ .0223
commission
rate I

</TABLE>

<TABLE>
<CAPTION>
<S> <C>
A ANNUALIZED B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT
ANNUALIZED. C THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE
PERIODS SHOWN (SEE NOTE 7 OF NOTES TO
FINANCIAL STATEMENTS). D EFFECTIVE NOVEMBER 1, 1993, THE FUND ADOPTED
STATEMENT OF POSITION 93-2,
"DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF
INCOME, CAPITAL GAIN, AND RETURN OF
CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES." AS A RESULT, NET
INVESTMENT INCOME PER SHARE MAY REFLECT
CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES. E
INCLUDES AMOUNTS DISTRIBUTED FROM NET REALIZED
GAINS ON FOREIGN CURRENCY RELATED TRANSACTIONS TAXABLE AS ORDINARY
INCOME. F AS OF NOVEMBER 1, 1991, THE FUND
DISCONTINUED THE USE OF EQUALIZATION ACCOUNTING. G FMR OR THE FUND HAS
ENTERED INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S
EXPENSES (SEE NOTE 7 OF NOTES TO FINANCIAL
STATEMENTS). H INCLUDES $.08 PER SHARE FROM RECOVERY OF FOREIGN TAXES
PREVIOUSLY WITHHELD ON DIVIDEND AND
INTEREST PAYMENTS. I FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER
1, 1995, A FUND IS REQUIRED TO DISCLOSE ITS
AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH
COMMISSIONS ARE CHARGED. THIS AMOUNT MAY
VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF
TRADES EXECUTED IN VARIOUS MARKETS WHERE
TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER.

</TABLE>

WORLDWIDE
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (income) and capital gains (the profits the
fund earns when it sells securities that have grown in value). Prior to
July 1, 1995, the fund imposed a 3% sales charge. If this sales charge were
taken into account, total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED PAST 6 PAST 1 PAST 5 LIFE OF
APRIL 30, 1996 MONTHS YEAR YEARS FUND

WORLDWIDE 11.22% 12.66% 77.91% 67.46%

Morgan Stanley Capital 13.37% 18.71% 67.68% 65.71%
International World Index

Global Funds Average 13.70% 22.50% 75.47% n/a

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, five years, or
since the fund started on May 30, 1990. For example, if you invested $1,000
in a fund that had a 5% return over the past year, the value of your
investment would be $1,050. You can compare the fund's returns to the
performance of the Morgan Stanley Capital International World Index, a
broad measure of the performance of stocks across the world, weighted by
each country's market capitalization (or the total value of its outstanding
shares). To measure how the fund's performance stacked up against its
peers, you can compare it to the global funds average, which reflects the
performance of 152 funds with similar objectives tracked by Lipper
Analytical Services over the past six months. These benchmarks include
reinvested dividends and capital gains, if any, and exclude the effects of
sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED PAST 1 PAST 5 LIFE OF
APRIL 30, 1996 YEAR YEARS FUND

WORLDWIDE 12.66% 12.21% 9.09%

Morgan Stanley Capital 18.71% 10.89% 8.90%
International World Index

Global Funds Average 22.50% 11.83% n/a

Let's say you invested $10,000 in Fidelity Worldwide Fund on May 30, 1990,
when the fund started. By April 30, 1996, the value of your investment
would have grown to $16,746 - a 67.46% increase on your initial investment.
That compares to $10,000 invested in the Morgan Stanley Capital
International World Index, which would have grown to $16,571 over the same
period - a 65.71% increase.

An interview with Penny Dobkin, Portfolio Manager of Fidelity Worldwide
Fund
Q. HOW HAS THE FUND DONE OVER THE PAST SIX MONTHS, PENNY?
A. For the six months ended April 30, 1996, the fund had a total return of
11.22%. The global funds average tracked by Lipper Analytical Services
returned 13.70%, while the Morgan Stanley Capital International World Index
posted a total return of 13.37% during the same period. For the 12 months
ended April 30, 1996, the fund's total return was 12.66%, while the global
funds average return was 22.50% and the Morgan Stanley index returned
18.71%.
Q. WHY DIDN'T THE FUND PERFORM AS WELL AS ITS LIPPER AVERAGE OR THE INDEX
OVER THE PAST SIX MONTHS?
A. There were a number of reasons. First, the Japanese market was one of
the best performing markets in the world over the past six months, and its
performance benefited both the average and the index. But even though the
fund's Japanese investments performed well, the fund had less invested
there than the average or the index. I was concerned that a weakening yen
would hurt the performance of the fund's Japanese investments, which were
largely made up of domestic Japanese companies whose returns are muted when
translated back into dollars at times when the yen weakens. Second, the
fund also had more invested in Finland than the index and the average.
While these stocks performed well, the Finnish marrka declined during the
period, dampening the fund's dollar-based returns. Third, economic growth
was sluggish and markets underperformed the world index in some of the core
European countries where the fund had significant stakes, such as
Switzerland, the Netherlands and Germany. Finally, most of the fund's top
U.S. holdings turned in sluggish performances, such as Philip Morris, IBM,
Allstate and Reynolds Metals. Philip Morris and IBM lagged as investors
began to pursue stocks of smaller companies in response to the news about
growth in the economy that arose toward the end of the period, providing a
positive backdrop for small-company stocks. Allstate was hit by losses
related to bad weather and an ensuing increase in claims. Even though
Reynolds Metals rose, the demand and supply dynamic that indicated an
imminent, notable increase in the price of aluminum didn't occur as
expected.
Q. WHAT WERE SOME OF THE POSITIVE PERFORMERS FOR THE FUND?
A. The position that the fund has held in Spanish banks for some time
started to pay off during the past six months. The recent election in that
country helped reinforce the sentiment that inflation will stay low there.
Spain is on track to reach European union monetary targets by 1997 or 1998,
and that has helped the bank stocks as well. The Spanish construction
sector started to see increasing demand, leading me to increase the fund's
investments in that area. In addition, the fund's 2.8% stake in Mexico did
very well on the heels of that country's economic recovery and the
stability of the peso. Securities brokers in Japan did well, as did three
Italian stocks: Telecom Italia, Telecom Italia Mobile - a cellular company
- - and Bulgari, the luxury retailer.
Q. WHAT SORTS OF CHANGES HAVE YOU MADE TO THE FUND OVER THE PAST SIX
MONTHS?
A. As you can see from information in the rest of this report, there
haven't been any significant changes in the country weightings in the fund.
My outlook toward the particular regions and countries stayed basically the
same. The changes that I made to sectors and countries were a result of
buying and selling specific stocks due to changes in value and business
prospects. In the U.S., I've invested in a number of consumer-oriented
areas, such as retail, apparel, casinos and regional airlines. In addition,
I've been attracted to several initial public offerings (IPOs) in Europe
and Latin America.
Q. WHAT ABOUT SOME OF THE NEW NAMES IN THE LIST OF THE FUND'S TOP 10
STOCKS?
A. I purchased Huhtamaki, a Finnish food
manufacturing/packaging/pharmaceuticals company, because of its
attractiveness as a restructuring story. I thought Eramet, a French metals
and mining company, had potential because the price of nickel appeared to
be on the upswing. I found Argentaria Corporacion Bancaria de Espana to be
the cheapest major bank in Spain with positive business prospects. Finally,
strong tire volumes as well as upward pricing momentum made Michelin
another attractive buy for the fund.
Q. WHILE YOU'VE REDUCED THE FUND'S SHORT-TERM INVESTMENTS BY MORE THAN FIVE
PERCENT, THEY STILL STOOD AT 14.0% AT THE END OF THE PERIOD. WHY WAS THAT?
A. The fund has seen a marked increase in assets over the past six months.
While I've been trying to put that money to work as quickly as possible, I
haven't been able to do so as quickly as I'd like. It's important for me to
buy stocks at attractive valuations and, while I have found some
opportunities, there haven't been enough for me to work down the short-term
investment position further.
Q. WHAT SORTS OF INTERNATIONAL TRENDS HAVE YOU SEEN RECENTLY?
A. One major trend has been the increase of IPOs worldwide, particularly in
Europe but also in Latin America and Southeast Asia. Many of them have been
very attractive to me; I've been trying to invest as much as I can in those
opportunities where I see particular potential, and I see more
opportunities on the horizon. These IPOs have come from many different
industries and have, in general, been low-priced offerings. Beyond that,
Latin America seems to be moving back onto the economic growth curve, with
inflation coming down or remaining muted. We've seen slow growth in Europe,
with very few inflationary tendencies other than oil and metal prices,
although these increases haven't fueled consumer price inflation as yet.
Labor costs worldwide have been reasonably muted - except in Southeast Asia
- - which means that they're not rising more than overall inflation. That's
reason to be hopeful we won't have broad-based inflation.
Q. WHAT'S YOUR OUTLOOK?
A. I wouldn't be surprised if the market in Hong Kong shows some strength
over the next few months, once trade growth starts to take off again.
Concern about economic growth slowing because of the change in Hong Kong's
governance in 1997 has been, I believe, a bit premature. I also expect
consumption in Europe to pick up, as it has been moribund for several
years. Certain taxes are due to expire in a number of countries in January
1997, and I expect consumers to increase spending as a result. So, European
stocks - especially the battered ones in the retail sector - should reflect
any change in consumption.

FUND FACTS
GOAL: long-term growth of capital by investing
mainly in common stocks from around the
world
START DATE: May 30, 1990
TRADING SYMBOL: FWWFX
SIZE: as of April 30, 1996, more than
$793 million
MANAGER: Penelope Dobkin, since 1990;
manager, Fidelity Europe Fund, 1986-1990;
Fidelity United Kingdom Fund, 1987-1989;
Fidelity Select Financial Services Portfolio,
1983-1986; joined Fidelity in 1980
(checkmark)
PENNY DOBKIN ON HER INVESTMENT STRATEGY:
"I look at industry trends to help determine my
investment choices. The analysis of stocks from
country to country doesn't really differ, but it can be
difficult to choose among all of the options I have. I
try to simplify the process by sticking with a few
themes that tend to be consistent within a region, if
not worldwide.
"Currently, those themes would include certain types of
holdings such as metal stocks - specifically,
companies handling nickel - overseas bank stocks,
retailing, construction, property and building
materials. Each one of these segments currently is
attractive in several countries. Another major theme
is the propensity for a consumer to spend. In
Japan, that situation is improving, as it is in Europe
and the U.S. In Latin America, this trend is moving
more slowly, as the standard of living gradually
improves.
"In terms of determining relative value among all the
choices, I always weigh a company's stock price
against its own earnings-growth prospects and the
stock's present and past valuation. To some extent, I
also weigh the stock's prospects against alternatives
within its home market. If it is attractive in that
market, that means there should be some demand
for it. I also try to find information on how the stock is
valued versus other companies in the same industry
around the world. Some companies in the fund do
not have competition within their home country or
within their region. In that case, I have to look at
another region to determine relative value.
"In my opinion, political problems are only stock
market problems if there are other areas of concern,
such as inflation, the level of interest rates,
economic growth or the structure of ownership of the
stock market. Generally, I find that economic factors
drive the market rather than political trends."
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
WORLDWIDE
INVESTMENT CHANGES

GEOGRAPHIC DIVERSIFICATION
AS OF APRIL 30, 1996
Canada 4.4%
Row: 1, Col: 1, Value: 33.9
Row: 1, Col: 2, Value: 5.1
Row: 1, Col: 3, Value: 18.7
Row: 1, Col: 4, Value: 8.6
Row: 1, Col: 5, Value: 11.6
Row: 1, Col: 6, Value: 3.2
Row: 1, Col: 7, Value: 4.1
Row: 1, Col: 8, Value: 5.3
Row: 1, Col: 9, Value: 5.1
Row: 1, Col: 10, Value: 4.4
Finland 5.1%
United States 33.9%
France 5.3%
Germany 4.1%
Hong Kong 3.2%
Japan 11.6%
Spain 5.1%
Netherlands 8.6%
Other 18.7%
AS OF OCTOBER 31, 1995

Canada 4.4%
Finland 6.4%
Row: 1, Col: 1, Value: 35.2
Row: 1, Col: 2, Value: 3.7
Row: 1, Col: 3, Value: 3.5
Row: 1, Col: 4, Value: 12.3
Row: 1, Col: 5, Value: 10.6
Row: 1, Col: 6, Value: 13.7
Row: 1, Col: 7, Value: 6.2
Row: 1, Col: 8, Value: 6.4
Row: 1, Col: 9, Value: 4.4
Row: 1, Col: 10, Value: 4.0
France 4.0%
United States 35.2%
Germany 6.2%
Japan 13.7%
Switzerland 3.5%
Spain 3.7%
Netherlands 10.6
%
Other 12.3%
ASSET ALLOCATION
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Stocks 85.2 80.3

Bonds 0.8 0.3

Short-term investments 14.0 19.4

TOP TEN STOCKS

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

Huhtamaki Ord. 1.6 1.0
(Finland, Foods)

Volker Stevin NV 1.4 1.6
(Netherlands, Construction)

Eramet SA 1.4 0.4
(France, Metals & Mining)

Philip Morris Companies, Inc. 1.2 1.3
(United States, Tobacco)

Sears, Roebuck & Co. 1.1 0.9
(United States, General
Merchandise Stores)

Argentaria Corporacion Bancaria de Espana SA 1.1 0.0
(Spain, Banks)

AKZO NV 1.0 1.2
(Netherlands, Chemicals & Plastics)

Deutsche Bank AG 1.0 1.8
(Germany, Banks)

Michelin SA (Compagnie Generale des Etablissement) Class B 1.0 0.6
(France, Autos, Tires, & Accessories)

Kone Corp. Class B Ord. 0.9 0.9
(Finland, Industrial Machinery & Equipment)

</TABLE>

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

Finance 14.3 16.1

Basic Industries 12.9 12.2

Durables 11.3 9.6

Construction & Real Estate 10.4 9.1

Retail & Wholesale 9.5 10.2

Nondurables 5.1 4.4

Industrial Machinery & Equipment 4.7 5.5

Utilities 3.5 3.1

Technology 3.4 2.6

Energy 2.8 2.5

WORLDWIDE FUND
INVESTMENTS APRIL 30, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 81.1%
SHARES VALUE (NOTE 1)
ARGENTINA - 0.1%
Disco SA sponsored ADR (a) 64,000 $ 1,016,000
AUSTRALIA - 1.1%
Capral Aluminum Ltd. 1,204,000 3,525,998
Southcorp Holdings Ltd. 1,859,900 5,066,154
8,592,152
BELGIUM - 0.7%
D'ieteren Trading SA 44,000 5,413,448
BRAZIL - 0.7%
Coteminas PN 6,100,000 2,558,194
Usiminas PN (Pfd. Reg.) 2,700,000,000 3,075,840
5,634,034
CANADA - 4.4%
Alcan Aluminium Ltd. 70,000 2,225,322
BCE, Inc. 34,000 1,336,735
Brascan Ltd. Class A 216,600 4,261,870
Canadian Pacific Ltd. Ord. 278,500 5,663,852
Falconbridge Ltd. 220,000 5,136,375
Falconbridge Ltd. 1st Installment
Receipt (f) 400,000 3,993,980
Imasco Ltd. 300,000 5,726,662
Inco Ltd. 95,000 3,208,399
Methanex Corp. (a) 345,600 2,727,653
34,280,848
CHINA (PEOPLES REPUBLIC) - 0.1%
Jilin Chemical Industrial Co. Ltd. Class H 4,460,000 893,649
CROATIA - 0.4%
Pliva D.D. GDR (a)(b) 105,300 3,369,600
DENMARK - 0.9%
Syd-Sonderjylland Holding 140,000 4,173,442
Unidanmark AS Class A 58,000 2,583,672
6,757,114
FINLAND - 5.1%
America Group Ltd. Class A 93,100 1,731,002
Enso-Gutzeit OY Class R Free shares 450,000 3,551,249
Huhtamaki Ord. 370,000 12,230,015
Kemira OY sponsored ADR (b) 168,600 3,224,475
Kemira OY 292,000 2,805,053
KCI (Konecranes International) 13,300 241,791
KCI (Konecranes International) (a)(b) 46,000 836,269
Kone Corp. Class B Ord. 67,050 7,479,935
Merita Ltd. Class A (a) 2,200,000 4,726,736
Valmet OY Class A 250,000 3,460,351
40,286,876
FRANCE - 5.3%
Bail Investissement SA 31,300 4,962,490
Eramet SA 140,000 10,675,947
Klepierre SA 48,350 5,627,746
Michelin SA (Compagnie Generale des
Etablissements) Class B 154,818 7,666,065
Pechiney SA Class A 122,076 5,747,391
Renault SA Ord. 55,000 1,666,377
Unibail 57,000 5,565,545
41,911,561
GERMANY - 2.2%
Adidas AG (b) 6,000 456,341
Adidas AG 35,000 2,661,988
Deutsche Bank AG 165,000 7,903,411

SHARES VALUE (NOTE 1)
Karstadt AG 14,300 $ 5,338,169
Tarkett AG (b) 33,000 754,039
17,113,948
HONG KONG - 3.2%
Amoy Properties Ltd. 3,206,000 3,605,646
Great Eagle Holdings Ltd. 849,014 2,436,510
Hang Lung Development Corp. 1,226,000 2,321,820
Jardine Matheson Holdings Ltd. Ord. 407,800 3,262,400
Jardine Strategic Holdings Ltd. Ord. 1,193,000 3,913,040
Kumagai Gumi 3,402,000 3,144,421
Peregrine Investments Holdings Ltd. 2,514,000 3,883,592
Sime Darby Hongkong Ltd. 2,410,000 2,336,569
24,903,998
INDIA - 0.1%
Indian Aluminum Ltd. GDR (b) 110,550 829,125
SCICI Ltd. 1,000 1,328
SCICI Ltd.(New) (a) 150 199
830,652
INDONESIA - 0.8%
Inti Indorayon Utama PT (For. Reg.) 1,931,500 2,384,824
Pt Tambank Timah GDR Unit (a) 240,000 4,128,000
6,512,824
IRELAND - 0.7%
Anglo-Irish Bank Corp. PLC 3,000,000 2,894,016
Woodchester Investments PLC Unit 775,000 2,295,429
5,189,445
ITALY - 0.8%
Mediobanca Spa 440,000 3,163,939
Telecom Italia Spa 1,706,200 3,469,814
6,633,753
JAPAN - 11.6%
Akita Bank Ltd. 344,000 2,551,662
Arc Land Sakamoto Co. Ltd. 120,000 1,437,877
Bank of Saga Ord. 242,000 1,636,270
Bridgestone Corp. 50,000 922,448
Canon, Inc. 84,000 1,661,547
Capcom Co. Ltd. 68,000 1,771,861
Daiwa Securities Co. Ltd. 425,000 6,507,061
Daiichi Corp. Ord. 152,000 3,830,536
Daito Trust Construction 233,000 3,434,454
FCC Co. Ltd. 37,400 1,387,095
Hankyu Department Stores, Inc. 147,000 2,138,843
Hanshin Department Store Ltd. 516,000 4,269,126
Homac Corp. 84,000 1,853,264
Kajima Corp. 280,000 3,142,028
Kanto Auto Works Co. Ltd. 82,000 623,841
Kokuyo Co. Ltd. 50,000 1,378,917
Maezawa Industries 40,000 1,084,114
Meiden Engineering Co. Ltd. 108,000 1,745,994
Matsuya Co. Ltd. 251,000 1,613,580
Ministop Co. Ltd. 117,700 3,156,426
Namura Shipbuilding Co. Ltd. 176,000 1,062,812
Nikko Securities Co. Ltd. 425,000 5,375,398
Nomura Securities Co. Ltd. 301,000 6,526,366
Nippon Zeon Co. Ltd. 373,000 2,369,493
Obayashi Corp. 339,000 3,136,769
Omron Corp. 50,000 1,122,153
Nikku Sangyo Co. Ltd. 96,000 1,013,361
Paris Miki, Inc. 76,000 3,201,750
Sakai Chemical Industry Co. Ltd. 159,000 1,164,281
Sekisui House Ltd. 360,000 4,450,573
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
JAPAN - CONTINUED
Shimachu Co. Ltd. 91,000 $ 3,072,132
Tokyo Nissan Auto Sales Co. Ltd. 244,000 1,728,686
Yamanouchi Pharmaceutical Co. Ltd. 150,000 3,537,635
Yamaichi Securities Co. Ltd. 539,000 4,239,009
Yokogawa Electric 254,000 2,946,888
91,094,250
MALAYSIA - 0.3%
EON (Edaran Otomobil Nasional) BHD 234,000 1,998,877
MEXICO - 2.8%
Cemex SA Class B sponsored ADR 850,000 6,906,250
Empresas Ica Sociedad Controladora
SA de CV sponsored ADR representing
Ord. participation certificate 375,000 5,203,125
Grupo Carso SA de CV Class A-1 (a) 455,000 3,479,231
Grupo Financiero Bancomer SA de CV
sponsored ADR, Series C (a)(b) 779,000 6,816,250
22,404,856
NETHERLANDS - 8.3%
Ahrend Groep NV Ord. (a) 40,000 1,743,799
AKZO NV 69,400 8,059,877
BAM Groep NV 50,745 2,813,408
CVG (Crown Van Gelder) 28,000 2,581,850
De Boer Winkelbedrijven NV 87,000 4,127,867
Econosto NV 135,500 1,976,948
Geveke NV (e) 215,200 5,714,386
KBB NV Ord. 71,625 4,786,147
Macintosh Confectie NV 184,900 4,122,078
Royal Dutch Petroleum Co. 15,000 2,148,750
Royal Ptt Nederland NV 108,000 4,052,758
Royal Ptt Nederland NV (b) 74,400 2,791,900
Samas-Groep NV 93,613 3,387,223
Vendex International NV 160,000 4,584,768
Vendex International NV (b) 46,000 1,318,121
Volker Stevin NV 165,000 11,218,267
65,428,147
NORWAY - 0.1%
Dual Invest AS Class B (non-vtg.) 121,700 1,110,731
PANAMA - 0.5%
McDermott (J. Ray) SA 174,900 4,263,188
PHILIPPINES - 0.0%
Alson's Cement Corp. (a)(b) 569,000 266,549
PORTUGAL - 0.6%
Portugal Telecom SA sponsored ADR 229,000 4,952,125
SPAIN - 5.1%
Argentaria Corporacion Bancaria
de Espana SA 216,100 8,740,399
Banco Bilbao Vizcaya SA Ord. (Reg.) 109,600 4,161,753
Banco de Santander SA Ord. (Reg.) 159,587 7,407,203
Banco Popular Espanol 5,800 960,214
Banco Pastor SA 50,000 2,862,640
Banco De Valencia SA (Reg.) 442,363 6,722,473
Cristaleria Espanola SA (a) 32,000 2,018,063
FOCSA (Fomento Construcciones
y Contratas SA) 55,000 4,686,641
Prosegur Comp Securidad SA (Reg.) 66,000 2,405,089
39,964,475

SHARES VALUE (NOTE 1)
SWEDEN - 2.1%
Iro, AB (b) 600,000 $ 5,741,585
Munksjo AB 265,000 2,087,213
Rottneros Bruk AB Free shares 1,850,000 2,151,622
Scania AB:
Class A (a) 24,000 664,257
Class B (a) 209,000 5,769,188
Swedish Match AB (a)(c) 134,600 346,777
16,760,642
SWITZERLAND - 2.4%
C. S. Holdings (Reg.) 30,650 2,776,848
Globus Magazine participation certificate 2,250 1,193,250
Merkur Holdings AG Ord. (Reg.) 14,000 2,879,871
SIG AG (Reg.) 3,800 4,305,344
Swiss Bank Corp. (Reg.) 12,257 2,284,953
Swisslog Holding AG (Reg) 10,150 3,246,043
Von Moos Holdings AG Ord. (a) 34,000 2,185,617
18,871,926
THAILAND - 0.3%
Securities One PLC (For. Reg.)
(warrants) (a) 24,666 82,518
Thai Military Bank Ltd. (For. Reg.) 471,600 2,277,855
2,360,373
UNITED KINGDOM - 2.0%
BSG, Inc. 3,000,000 3,549,692
Kalon Group PLC 180,475 367,240
Millennium & Copthorne Hotels PLC
sponsored ADR (b) 47,000 904,750
Millenium & Copthorne Hotels PLC (b) 75,000 360,622
Nichols (Harvey) Group PLC (b) 357,000 1,732,702
Shell Transport & Trading PLC 20,000 1,600,000
T & N PLC 750,000 2,029,203
Unichem PLC 1,373,600 5,155,364
15,699,573
UNITED STATES OF AMERICA - 18.4%
Alaska Air Group, Inc. (a) 100,000 2,537,500
Alliant Techsystems, Inc. (a) 60,000 2,820,000
Allstate Corp. 105,000 4,081,875
Alumax, Inc. (a) 152,300 5,102,050
Aluminum Co. of America 28,600 1,783,925
Amerada Hess Corp. 92,700 5,249,138
Anadarko Petroleum Corp. 45,000 2,621,250
Atlantic Southeast Airlines, Inc. 90,000 2,250,000
Augat, Inc. 130,000 2,502,500
BJ Services Co. (a) 50,239 1,927,922
Baker (J.), Inc. 151,000 1,453,375
Belco Oil & Gas Corp. (a) 1,000 28,875
Benton Oil & Gas Co. 10,000 175,000
Books-A-Million, Inc. (a) 88,400 917,150
Burlington Industries, Inc. (a) 256,000 2,976,000
Burlington Resources, Inc. 70,000 2,607,500
CDI Corp. (a) 40,000 1,180,000
Carson Pirie Scott & Co. (a) 64,300 1,559,275
Continental Homes Holding Corp. 50,000 1,143,750
Cost Plus, Inc. (a) 1,000 23,750
Dayton Hudson Corp. 40,900 3,905,950
Dillard Department Stores, Inc. Class A 125,000 5,015,625
Ethan Allen Interiors, Inc. (a) 70,000 1,820,000
Exide Corp. 59,600 1,676,250
Federated Department Stores, Inc. (a) 140,000 4,672,500
Franklin Quest Co. (a) 100,000 2,700,000
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
UNITED STATES OF AMERICA - CONTINUED
Furniture Brands International, Inc. (a) 350,000 $ 3,456,250
Gateway 2000, Inc. (a) 80,000 2,790,000
Global Village Communication (a) 40,000 690,000
Grand Casinos, Inc. (a) 20,000 647,500
Heilig-Meyers Co. 59,000 1,216,875
International Business Machines Corp. 47,700 5,127,750
Kaiser Aluminum Corp. (a) 60,000 802,500
Kerr-McGee Corp. 66,600 4,254,075
Libbey, Inc. 105,000 2,441,250
Lo Jack Corp. (a) 150,000 1,912,500
Lyondell Petrochemical Co. 60,000 1,762,500
MetaTools, Inc. (a) 500 14,000
Mohawk Industries, Inc. (a) 14,500 212,063
OM Group, Inc. 90,000 3,431,250
Philip Morris Companies, Inc. 108,000 9,733,500
President Riverboat Casinos, Inc. (a) 89,000 183,563
RJR Nabisco Holdings Corp. 138,740 4,144,858
Revlon, Inc. Class A (a) 1,000 27,000
Reynolds Metals Co. 67,100 3,606,625
Ross Stores, Inc. 20,000 690,000
Sears, Roebuck & Co. 175,500 8,752,972
Sensormatic Electronics Corp. 120,000 2,445,000
Sodak Gaming, Inc. 60,000 1,545,000
Station Casinos, Inc. (a) 189,900 2,516,175
Syratech Corp. (a) 30,000 825,000
Terra Nova (Bermuda) Holdings Ltd. 75,300 1,280,100
Toys "R" Us, Inc. (a) 86,300 2,405,613
Trescom International, Inc. (a) 4,000 77,000
Trump Hotels & Casino Resorts, Inc. (a) 84,060 2,721,443
Tuboscope Vetco Corp. (a) 121,000 1,573,000
UNUM Corp. 29,800 1,773,100
Union Planters Corp. 30,156 908,450
Unisys Corp. (a) 205,000 1,230,000
Wang Laboratories, Inc. (a) 14,900 352,945
Warnaco Group, Inc. Class A 85,000 2,231,250
Westpoint Stevens, Inc. Class A 155,400 3,263,400
Wolverine Tube, Inc. (a) 26,000 955,500
144,731,167
TOTAL COMMON STOCKS
(Cost $558,588,094) 639,246,781
PREFERRED STOCKS - 4.1%
CONVERTIBLE PREFERRED STOCKS - 1.1%
NETHERLANDS - 0.3%
Samas-Groep NV 59,306 2,422,772
UNITED STATES OF AMERICA - 0.8%
Reynolds Metals Co. $3.31 21,500 1,034,688
Station Casinos, Inc. $3.50 60,000 3,202,500
Unisys Corp. $3.75, Series A 76,600 2,250,125
Wang Labs, Inc. $3.25 (b) 2,700 147,825
6,635,138
TOTAL CONVERTIBLE PREFERRED STOCKS 9,057,910

SHARES VALUE (NOTE 1)
NONCONVERTIBLE PREFERRED STOCKS - 3.0%
GERMANY - 1.9%
Escada AG (non-vtg.) 34,690 $ 5,457,999
FAG Kugelfischer Georg Schaefer Kgaa 43,000 6,246,124
RWE AG 80,000 2,326,750
Schwabengarage AG 69,471 1,224,558
15,255,431
ITALY - 1.1%
Telecom Italia Ord. 2,600,000 4,336,874
Telecom Italia Mobile Spa De Risp 2,800,000 3,944,359
8,281,233
TOTAL NONCONVERTIBLE PREFERRED STOCKS 23,536,664
TOTAL PREFERRED STOCKS
(Cost $30,548,811) 32,594,574
CONVERTIBLE BONDS - 0.8%
MOODY'S PRINCIPAL VALUE
RATINGS AMOUNT (C) (NOTE 1)
INDIA - 0.1%
SCICI Ltd. 15%, 1/02/03 - INR 27,082,500 795,280
UNITED STATES OF AMERICA - 0.7%
Unisys Corp.:
8 1/4%, 8/1/00 B3 2,500,000 2,343,750
8 1/4%, 3/15/06 B3 3,000,000 3,300,000
5,643,750
TOTAL CONVERTIBLE BONDS
(Cost $6,362,953) 6,439,030
REPURCHASE AGREEMENTS - 14.0%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.33%, dated
4/30/96 due 5/1/96 $ 110,151,306 110,135,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $705,634,858) $ 788,415,385
CURRENCY ABBREVIATIONS
CAD - Canadian dollar
INR - Indian rupee
LEGEND
(a) Non-income producing
(b) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $29,550,153 or 3.7% of net
assets.
(c) Security purchased on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
(d) Principal amount is stated in United States dollars unless otherwise
noted.
(e) An affiliated company is a company in which the fund has ownership of
at least 5% of the voting securities. Transactions with companies which
are or were affiliates are as follows:
PURCHASES SALES DIVIDEND MARKET
AFFILIATE COST COST INCOME VALUE
Geveke NV $ - $ - $ 123,573 $ 5,714,386
Von Moos Holdings AG Ord. - - - -
TOTALS $ - $ - $ 123,573 $ 5,714,386

(f) Purchased on an installment basis. Market value reflects only those
payments made through April 30, 1996. The remaining installments
aggregating CAD $7,600,000 are due July 31, 1996 and January 31, 1997.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $217,328,284 and $120,838,939, respectively.
The fund placed a portion of its portfolio transactions with brokerage
firms which are affiliates of FMR. The commissions paid to these affiliated
firms were $60,046 for the period (see Note 5 of Notes to Financial
Statements).
INCOME TAX INFORMATION
At April 30, 1996, the aggregate cost of investment securities for income
tax purposes was $705,926,245. Net unrealized appreciation aggregated
$82,489,140, of which $101,941,243 related to appreciated investment
securities and $19,452,103 related to depreciated investment securities.
INDUSTRY DIVERSIFICATION
As a Percentage of Total Value of Investment in Securities
Aerospace & Defense 0.5%
Basic Industries 12.9
Conglomerates 0.5
Construction & Real Estate 10.4
Durables 11.3
Energy 2.8
Finance 14.3
Health 1.6
Holding Companies 1.3
Industrial Machinery & Equipment 4.7
Media & Leisure 1.3
Nondurables 5.1
Repurchase Agreements 14.0
Retail & Wholesale 9.5
Services 1.0
Technology 3.4
Transportation 1.9
Utilities 3.5
100.0%
WORLDWIDE
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996 (UNAUDITED)

ASSETS

Investment in $ 788,415,385
securities, at
value
(including
repurchase
agreements
of
$110,135,000
) (cost
$705,634,858
) - See
accompanyin
g schedule

Cash 1,282,693

Receivable for 5,790,222
investments
sold

Receivable for 7,551,475
fund shares
sold

Dividends 2,274,250
receivable

Interest 125,168
receivable

Other 46,218
receivables

TOTAL ASSETS 805,485,411

LIABILITIES

Payable for $ 7,287,677
investments
purchased
Regular
delivery

Delayed 407,536
delivery

Payable for 3,233,115
fund shares
redeemed

Accrued 479,834
management
fee

Other payables 391,823
and
accrued
expenses

TOTAL 11,799,985
LIABILITIES

NET ASSETS $ 793,685,426

Net Assets
consist of:

Paid in capital $ 701,673,553

Undistributed 3,776,856
net
investment
income

Accumulated 5,478,762
undistributed
net realized
gain (loss) on
investments
and foreign
currency
transactions

Net unrealized 82,756,255
appreciation
(depreciation
) on
investments
and assets
and liabilities
in
foreign
currencies

NET ASSETS, for $ 793,685,426
54,166,140
shares
outstanding

NET ASSET $14.65
VALUE,
offering price

and
redemption
price per
share
($793,685,42
6 (divided by)
54,166,140
shares)

STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)

INVESTMENT $ 6,607,555
INCOME
Dividends
(including
$123,573
received
from affiliated
issuers)

Interest 3,823,012

10,430,567

Less foreign (688,826
taxes )
withheld

TOTAL 9,741,741
INCOME

EXPENSES

Management $ 2,631,744
fee

Transfer agent 1,060,222
fees

Accounting 210,406
fees and
expenses

Non-interested 1,350
trustees'
compensatio
n

Custodian fees 142,241
and
expenses

Registration 34,258
fees

Audit 21,595

Legal 3,154

Miscellaneous 6,204

Total 4,111,174
expenses
before
reductions

Expense (39,520 4,071,654
reductions )

NET 5,670,087
INVESTMENT
INCOME

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

Investment 5,917,820
securities

Foreign (38,178 5,879,642
currency )
transactions

Change in net
unrealized
appreciation
(depreciation
) on:

Investment 63,943,588
securities

Assets and (40,337 63,903,251
liabilities in )
foreign
currencies

NET GAIN (LOSS) 69,782,893

NET INCREASE $ 75,452,980
(DECREASE)
IN NET ASSETS
RESULTING
FROM
OPERATIONS

OTHER $ 209,473
INFORMATION
Accounting
fees paid to
FSC

Expense $ 21,746
reductions
Directed
brokerage
arrangement
s

Custodian 267
interest
credits

Transfer 17,507
agent
interest
credits

$ 39,520

STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS SIX MONTHS YEAR ENDED
ENDED OCTOBER 31,
APRIL 30, 1996 1995
(UNAUDITED)

Operations $ 5,670,087 $ 14,426,321
Net
investment
income

Net realized 5,879,642 (4,454,119)
gain (loss)

Change in 63,903,251 (3,656,058)
net
unrealized
appreciation
(depreciation
)

NET INCREASE 75,452,980 6,316,144
(DECREASE)
IN NET
ASSETS
RESULTING
FROM
OPERATIONS

Distributions to (7,253,442) (8,330,247)
shareholders
From net
investment
income

From net - (29,879,122)
realized gain

TOTAL (7,253,442) (38,209,369)
DISTRIBUTION
S

Share 399,358,184 526,107,715
transactions
Net proceeds
from sales of
shares

Reinvestmen 7,084,969 37,492,418
t of
distributions

Cost of (340,002,488) (621,399,865)
shares
redeemed

NET INCREASE 66,440,665 (57,799,732)
(DECREASE)
IN NET
ASSETS
RESULTING
FROM SHARE
TRANSACTIO
NS

TOTAL 134,640,203 (89,692,957)
INCREASE
(DECREASE)
IN NET ASSETS

NET ASSETS

Beginning of 659,045,223 748,738,180
period

End of period $ 793,685,426 $ 659,045,223
(including
undistribute
d net
investment
income of
$3,776,856
and
$5,414,914
,
respectivel
y)

OTHER
INFORMATION
Shares

Sold 28,655,432 39,931,110

Issued in 532,304 2,980,274
reinvestment
of
distributions

Redeemed (24,508,259) (47,075,996)

Net increase 4,679,477 (4,164,612)
(decrease)

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

</TABLE>

FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED OCTOBER 31,
ENDED
APRIL 30, 1996

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

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Net asset $ 13.32 $ 13.96 $ 12.76 $ 9.63 $ 9.61 $ 8.95
value,
beginning of
period

Income from
Investment
Operations

Net .11 .17 .08 .11 .20 .21
investment
income

Net realized 1.37 (.08) 1.37 3.28 (.08) .53
and
unrealized
gain (loss)

Total from 1.48 .09 1.45 3.39 .12 .74
investment
operations

Less (.15) (.16) (.10) (.24) (.10) (.08)
Distributions
From net
investment
income

From net - (.57) (.15) (.02) D - -
realized gain

Total (.15) (.73) (.25) (.26) (.10) (.08)
distributions

Net asset $ 14.65 $ 13.32 $ 13.96 $ 12.76 $ 9.63 $ 9.61
value, end of
period

TOTAL RETURN B, 11.22% .95% 11.55% 36.10% 1.32% 8.33%
C

RATIOS AND
SUPPLEMENT
AL DATA

Net assets, $ 793,685 $ 659,045 $ 748,738 $ 287,278 $ 103,627 $ 105,029
end of period
(000 omitted)

Ratio of 1.20% A 1.17% 1.32% 1.40% 1.51% 1.69%
expenses to
average net
assets

Ratio of 1.19% A, 1.16% 1.32% 1.40% 1.51% 1.69%
expenses to F F
average net
assets after
expense
reductions

Ratio of net 1.66% A 2.05% 1.40% 1.99% 2.02% 2.19%
investment
income to
average net
assets

Portfolio 43% A 70% 69% 57% 130% 129%
turnover rate

Average $ .0002
commissions
rate G

</TABLE>

<TABLE>
<CAPTION>
<S> <C>
A ANNUALIZED B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT
ANNUALIZED. C THE TOTAL RETURNS
WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE
PERIODS SHOWN (SEE NOTE 7 OF
NOTES TO FINANCIAL STATEMENTS). D INCLUDES AMOUNTS DISTRIBUTED FROM NET
REALIZED GAINS ON FOREIGN
CURRENCY RELATED TRANSACTIONS TAXABLE AS ORDINARY INCOME. E EFFECTIVE
NOVEMBER 1, 1993, THE FUND
ADOPTED STATEMENT OF POSITION 93-2, "DETERMINATION, DISCLOSURE, AND
FINANCIAL STATEMENT PRESENTATION OF
INCOME, CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY
INVESTMENT COMPANIES." AS A RESULT, NET
INVESTMENT INCOME PER SHARE MAY REFLECT CERTAIN RECLASSIFICATIONS
RELATED TO BOOK TO TAX
DIFFERENCES. F FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO EITHER PAID OR
REDUCED A PORTION OF THE FUND'S EXPENSES (SEE NOTE 7 OF NOTES TO
FINANCIAL STATEMENTS). G FOR FISCAL
YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS REQUIRED TO
DISCLOSE ITS AVERAGE COMMISSION RATE
PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS
AMOUNT MAY VARY FROM PERIOD TO
PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN
VARIOUS MARKETS WHERE TRADING
PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER.

</TABLE>

NOTES TO FINANCIAL STATEMENTS
For the period ended April 30, 1996 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity International Growth & Income Fund, Fidelity Diversified
International Fund, Fidelity International Value Fund, Fidelity Overseas
Fund and Fidelity Worldwide Fund (the funds) are funds of Fidelity
Investment Trust (the trust). The trust is registered under the Investment
Company Act of 1940, as amended (the 1940 Act), as an open-end management
investment company organized as a Massachusetts business trust. Each fund
is authorized to issue an unlimited number of shares. The financial
statements have been prepared in conformity with generally accepted
accounting principles which permit management to make certain estimates and
assumptions at the date of the financial statements. The following
summarizes the significant accounting policies of the funds:
SECURITY VALUATION. Securities for which quotations are readily available
are valued at the last sale price, or if no sale price, at the closing bid
price in the principal market in which such securities are normally traded.
Securities, including restricted securities, for which quotations are not
readily available are valued primarily using dealer-supplied valuations or
at their fair value as determined in good faith under consistently applied
procedures under the general supervision of the Board of Trustees.
Short-term securities maturing within sixty days of their purchase date are
valued at amortized cost or original cost plus accrued interest, both of
which approximate current value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the funds are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Purchases and
sales of securities, income receipts, and expense payments are translated
into U.S. dollars at the prevailing exchange rate on the respective dates
of the transactions.
Net realized gains and losses on foreign currency transactions represent
net gains and losses from sales and maturities of forward currency
contracts, disposition of foreign currencies, currency gains and losses
realized between the trade and settlement dates on securities transactions,
and the difference between the amount of net investment income accrued and
the U.S. dollar amount actually received. The effects of changes in foreign
currency exchange rates on investments in securities are included with the
net realized and unrealized gain or loss on investment securities.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, each fund is not subject to U.S. federal
income taxes to the extent that it distributes all of its taxable income
for its fiscal year. Each fund may be subject to foreign taxes on income,
gains on investments or currency repatriation. Each fund accrues such taxes
as applicable. The schedules of investments include information regarding
income taxes under the caption "Income Tax Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date,
except certain dividends from foreign securities where the ex-dividend date
may have passed, are recorded as soon as the funds are informed of the
ex-dividend date. Interest income, which includes accretion of original
issue discount, is accrued as earned. Investment income is recorded net of
foreign taxes withheld where recovery of such taxes is uncertain.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date. Certain foreign currency gains (losses) are taxable as
ordinary income and, therefore, increase (decrease) taxable ordinary income
available for distribution.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences, which may result in distribution
reclassifications, are primarily due to differing treatments for futures
transactions, foreign currency transactions, passive foreign investment
companies (PFIC), market discount, capital loss carryforwards, and losses
deferred due to wash sales and excise tax regulations. Certain funds also
utilized earnings and profits distributed to shareholders on redemption of
shares as a part of the dividends paid deduction for income tax purposes.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect the per-share allocation between net investment income and realized
and unrealized gain (loss). Undistributed net investment income and
accumulated undistributed net realized gain (loss) on investments and
foreign currency transactions may include temporary book and tax basis
differences which will reverse in a subsequent period. Any taxable income
or gain remaining at fiscal year end is distributed in the following year.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
FORWARD FOREIGN CURRENCY CONTRACTS. The funds may use foreign currency
contracts to facilitate transactions in foreign securities and to manage
the funds' currency exposure. Contracts to buy generally are used to
acquire exposure to foreign currencies, while contracts to sell are used to
hedge the funds' investments against currency fluctuations. Also, a
contract to buy or sell can offset a previous contract. Losses may arise
from changes in the value of the foreign currency or if the counterparties
do not perform under the contracts' terms.
The U.S. dollar value of forward foreign currency contracts is determined
using forward currency exchange rates supplied by a quotation service.
Purchases and sales of forward foreign currency
2. OPERATING POLICIES - CONTINUED
FORWARD FOREIGN CURRENCY CONTRACTS - CONTRACTS
contracts having the same settlement date and broker are offset and any
realized gain (loss) is recognized on the date of offset; otherwise, gain
(loss) is recognized on settlement date.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the funds, along with other affiliated
entities of Fidelity Management & Research Company (FMR), may transfer
uninvested cash balances into one or more joint trading accounts. These
balances are invested in one or more repurchase agreements that mature in
60 days or less from the date of purchase, and are collateralized by U.S.
Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The funds, through their custodian, receive delivery
of the underlying U.S. Treasury or Federal Agency securities, the market
value of which is required to be at least equal to the repurchase price.
For term repurchase agreement transactions, the underlying securities are
marked-to-market daily and maintained at a value at least equal to the
repurchase price. FMR, the funds' investment adviser, is responsible for
determining that the value of the underlying securities remains in
accordance with the market value requirements stated above.
DELAYED DELIVERY TRANSACTIONS. Each fund may purchase or sell securities on
a when-issued or forward commitment basis. Payment and delivery may take
place a month or more after the date of the transaction. The price of the
underlying securities and the date when the securities will be delivered
and paid for are fixed at the time the transaction is negotiated. The
market value of the securities purchased or sold on a when-issued or
forward commitment basis are identified as such in the fund's schedule of
investments. Each fund may receive compensation for interest forgone in the
purchase of a delayed delivery security. Losses may arise due to changes in
the market value of the underlying securities or if the counterparty does
not perform under the contract.
FUTURES CONTRACTS AND OPTIONS. The funds may use futures and options
contracts to manage their exposure to the stock and bond markets and to
fluctuations in interest rates and currency values. Buying futures, writing
puts, and buying calls tend to increase the funds' exposure to the
underlying instrument. Selling futures, buying puts, and writing calls tend
to decrease the funds' exposure to the underlying instrument, or hedge
other fund investments. Futures contracts involve, to varying degrees, risk
of loss in excess of the futures variation margin reflected in the
Statement of Assets and Liabilities. The underlying face amount at value of
any open futures contracts at period end, is shown in the schedule of
investments under the caption "Futures Contracts." This amount reflects
each contract's exposure to the underlying
instrument at period end. Losses may arise from changes in the value of the
underlying instruments, if there is an illiquid secondary market for the
contracts, or if the counterparties do not perform under the contracts'
terms.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Exchange-traded
options are valued using the last sale price or, in the absence of a sale,
the last offering price. Options traded over-the-counter are valued using
dealer-supplied valuations.
RESTRICTED SECURITIES. The funds are permitted to invest in securities
that are subject to legal or contractual restrictions on resale. These
securities may be resold in transactions exempt from registration or to the
public if the securities are registered. Disposal of these securities may
involve time-consuming negotiations and expense, and prompt sale at an
acceptable price may be difficult. Restricted securities (excluding 144A
issues) at the end of the period are shown under the caption "Other
Information" at the end of each applicable fund's schedule of investments.
3. JOINT TRADING ACCOUNT.
At the end of the period, the International Value fund had 20% or more of
its total investments in repurchase agreements through a joint trading
account. These repurchase agreements were with entities whose
creditworthiness has been reviewed and found satisfactory by FMR. The
maturity values of the joint trading account investments were $63,605,416
at 5.33%. The investments in repurchase agreements through the joint
trading account are summarized as follows:
SUMMARY OF JOINT TRADING ACCOUNT
DATED APRIL 30, 1996, DUE MAY 1, 1996
Number of dealers or banks 23
Maximum amount with one dealer or bank 11.8%
Aggregate principal amount of agreements $24,542,776,000
Aggregate maturity amount of agreements $24,546,409,934
Aggregate market value of collateral $25,046,511,376
Coupon rates of collateral 0.0% to 14 1/4%
Maturity dates of collateral 5/2/96 to 2/15/26
4. PURCHASES AND SALES OF INVESTMENTS.
Information regarding purchases and sales of securities (other than
short-term securities) and the market value of future contracts opened and
closed is included under the caption "Other Information" at the end of each
applicable fund's schedule of investments.
5. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As each fund's investment adviser, FMR receives a monthly
basic fee that is calculated on the basis of a group fee rate plus a fixed
individual fund fee rate applied to the average
5. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
MANAGEMENT FEE - CONTINUED
net assets of each fund. The group fee rate is the weighted average of a
series of rates and is based on the monthly average net assets of all the
mutual funds advised by FMR. The rates ranged from .2500% to .5200% for the
period. In the event that these rates were lower than the contractual rates
in effect during the period, FMR voluntarily implemented the above rates,
as they resulted in the same or a lower management fee. The annual
individual fund fee rate is .45% for each fund.
The basic fee for Diversified International, International Value and
Overseas is subject to a performance adjustment (up to a maximum of
(plus/minus) .20%) based on each fund's investment performance as compared
to the appropriate index over a specified period of time.
For the period, each fund's management fee was equivalent to the following
annualized rates expressed as a percentage of average net assets after the
performance adjustment, if applicable:
Diversified International .84%
International Value .80%
International Growth & Income, Worldwide .76%
Overseas .72%
SUB-ADVISER FEE. FMR, on behalf of the funds, entered into sub-advisory
agreements with Fidelity Management & Research (U.K.) Inc., Fidelity
Management & Research Far East Inc., Fidelity International Investment
Advisors (FIIA), and Fidelity Investments Japan Ltd. In addition, FIIA
entered into a sub-advisory agreement with its subsidiary, Fidelity
International Investment Advisors (U.K.) Limited (FIIAL U.K.). Under the
sub-advisory arrangements, FMR may receive investment advice and research
services and may grant the sub-advisers investment management authority to
buy and sell securities. FMR pays its sub-advisers either a portion of its
management fee or a fee based on costs incurred for these services. FIIA
pays FIIAL U.K. a fee based on costs incurred for either service.
SALES LOAD. Fidelity Distributors Corporation (FDC), an affiliate of FMR,
is the general distributor of the funds. Shares of International Growth &
Income purchased before October 12, 1990 are subject to a 1% deferred sales
charge upon redemption. For the period, FDC received no deferred sales
charges for redemption of shares of International Growth and Income Fund.
TRANSFER AGENT FEE. Fidelity Service Co. (FSC), an affiliate of FMR, is the
funds' transfer, dividend disbursing and shareholder servicing agent. FSC
receives account fees and asset-based fees that vary according to account
size and type of account. FSC pays for typesetting, printing and mailing of
all shareholder reports, except proxy statements. For the period, each
fund's transfer agent fees were equivalent to the following annualized
rates:
International Growth & Income .29%
Diversified International .27%
International Value, Overseas .28%
Worldwide .31%
ACCOUNTING FEE. FSC maintains the funds' accounting records. The fee is
based on the level of average net assets for the month plus out-of-pocket
expenses. The accounting and pricing fees paid to FSC are shown under the
caption "Other Information" on each fund's Statement of Operations.
BROKERAGE COMMISSIONS. Certain funds placed a portion of their portfolio
transactions with brokerage firms which are affiliates of FMR. The
commissions paid to these affiliated firms are shown under the caption
"Other Information" at the end of each applicable fund's schedule of
investments.
6. TRANSACTIONS WITH AFFILIATED COMPANIES.
An affiliated company is a company in which the fund has ownership of at
least 5% of the voting securities. Information regarding affiliated
companies is included under the caption "Other Information" at the end of
each applicable fund's schedule of investments.
7. EXPENSE REDUCTIONS.
FMR has directed certain portfolio trades to brokers who paid a portion of
certain funds' expenses.
In addition, certain funds have entered into arrangements with their
custodian and transfer agent whereby interest earned on uninvested cash
balances was used to offset a portion of certain funds' expenses.
Information regarding expense reductions are shown under the caption "Other
Information" on each applicable fund's Statement of Operations.
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
INVESTMENT SUB-ADVISERS
Fidelity Management & Research (U.K.) Inc.,
London, England
Fidelity Management & Research (Far East) Inc.,
Tokyo, Japan
Fidelity Investments Japan Ltd.
Fidelity International Investment Advisors
Fidelity International Investment Advisors
(U.K.) Limited
OFFICERS
Edward C. Johnson 3d, PRESIDENT
J. Gary Burkhead, SENIOR VICE PRESIDENT
Penelope Dobkin, VICE PRESIDENT, WORLDWIDE FUND
Gregory Fraser, VICE PRESIDENT, DIVERSIFIED INTERNATIONAL
Richard Mace, VICE PRESIDENT, INTERNATIONAL VALUE,
OVERSEAS FUND
John R. Hickling, VICE PRESIDENT, INTERNATIONAL GROWTH & INCOME
William J. Hayes, VICE PRESIDENT
Arthur S. Loring, SECRETARY
Kenneth A. Rathgeber, TREASURER
Robert H. Morrison, MANAGER, SECURITY TRANSACTIONS
John H. Costello, ASSISTANT TREASURER
Leonard M. Rush, ASSISTANT TREASURER
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox *
Phyllis Burke Davis *
Richard J. Flynn *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Edward H. Malone *
Marvin L. Mann *
Gerald C. McDonough *
Thomas R. Williams *
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
* INDEPENDENT TRUSTEES
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
CUSTODIAN
Chase Manhattan Bank, N.A.
New York, NY
FIDELITY'S INTERNATIONAL EQUITY FUNDS
Canada Fund
Diversified International Fund
Emerging Markets Fund
Europe Fund
Europe Capital Appreciation Fund
France Fund
Germany Fund
Hong Kong and China Fund
International Growth and Income Fund
International Value Fund
Japan Fund
Japan Small Companies Fund
Latin America Fund
Nordic Fund
Pacific Basin Fund
Southeast Asia Fund
Overseas Fund
United Kingdom Fund
Worldwide Fund
CORPORATE HEADQUARTERS
82 Devonshire Street
Boston, MA 02109
1-800-544-8888
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
AUTOMATED LINES FOR QUICKEST SERVICE

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P.O. Box 193
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