SUPPLEMENT TO FIDELITY'S TARGETED
INTERNATIONAL EQUITY FUNDS DECEMBER 30, 1996 PROSPECTUS
The following information replaces similar information found in "The
Funds at a Glance" section on page P-3:
EUROPE FUND
GOAL: Long-term growth of capital.
STRATEGY: Invests mainly in equity securities of European issuers.
SIZE: As of October 31, 1996, the fund had over $691 million in
assets.
The following information replaces similar information found in the
"Charter" section beginning on page P-25:
THE FUNDS MAY HOLD SPECIAL MEETINGS AND MAIL PROXY MATERIALS. These
meetings may be called to elect or remove trustees, change fundamental
policies, approve a management contract, or for other purposes.
Shareholders not attending these meetings are encouraged to vote by
proxy. Fidelity will mail proxy materials in advance, including a
voting card and information about the proposals to be voted on. The
number of votes you are entitled to is based upon the dollar value of
your investment.
The following information replaces similar information found under the
heading "FMR and Its Affiliates" in the "Charter" section on page
P-25:
Affiliates assist FMR with foreign securities:
(small solid bullet) Fidelity Management & Research (U.K.) Inc. (FMR
U.K.), in London, England, serves as a sub-adviser for all the funds.
(small solid bullet) Fidelity Management & Research Far East Inc. (FMR
Far East), in Tokyo, Japan, serves as a sub-adviser for all the funds.
(small solid bullet) Fidelity International Investment Advisors
(FIIA), in Pembroke, Bermuda, serves as a sub-adviser for all the
funds. Currently, FIIA exercises discretionary management authority
over Southeast Asia Fund, Hong Kong and China Fund, Japan Fund, and
Pacific Basin Fund in its capacity as sub-adviser.
(small solid bullet) Fidelity International Investment Advisors (U.K.)
Limited (FIIAL U.K.), in London, England, serves as a sub-adviser for
all the funds. Currently, FIIAL U.K. exercises discretionary
management authority over Emerging Markets Fund, Europe Fund,
France Fund, Germany Fund, Nordic Fund, and United Kingdom Fund in its
capacity as sub-adviser.
(small solid bullet) Fidelity Investment Japan Ltd. (FIJ), in Tokyo,
Japan serves as a sub-adviser for Emerging Markets Fund, Hong Kong and
China Fund, Japan Fund, Japan Small Companies Fund, Pacific Basin
Fund, and Southeast Asia Fund. Currently, FIJ exercises discretionary
management authority over Japan Small Companies Fund.
The following information replaces the biographical information for
Richard Hazlewood found in the "Charter" section beginning on page
P-25:
David Stewart is manager of Emerging Markets, which he has managed
since November 1997. Since joining Fidelity in 1994, Mr. Stewart has
worked as an analyst, portfolio manager and director for Fidelity
International Limited (FIL). Previously, he was an analyst with James
Capel, in London and Japan, from 1986 to 1994.
The following information replaces the biographical information for
Samuel Morse found in the "Charter" section beginning on page P-25:
Simon Roberts is manager of United Kingdom, which he has managed since
July 1997. Previously, he managed another Fidelity fund. Since joining
Fidelity in 1992, Mr. Roberts has worked as a manager and analyst.
Previously, Mr. Roberts was an investment analyst for Schroeder
Securities Limited from 1989 to 1992.
Effective October 1, 1997, the following information supplements
similar information found in the "Charter" section beginning on page
P-25:
Trygve Toraasen is associate portfolio manager for Nordic, which he
has managed since October 1997. Mr. Toraasen joined Fidelity as a
research analyst in 1994, after receiving his MSBA from the University
of Southern California.
The following information replaces similar information in the
"Investment Principles and Risks" section on page P-27:
EUROPE FUND seeks growth of capital over the long term by investing in
securities of issuers that have their principal activities in Europe.
FMR normally invests at least 65% of the fund's total assets in these
securities. Western European countries include Austria, Belgium,
Denmark, Germany, Finland, France, Greece, Ireland, Italy, Luxembourg,
the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the
United Kingdom. Eastern European countries include Belarus, Bulgaria,
the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland,
Russia, Slovakia, Slovenia, and Turkey. FMR expects that the fund will
normally invest in at least three different countries, although it may
invest all of its assets in a single country.
The fund's performance is closely tied to economic and political
conditions within Europe and the European Economic Area (formerly the
Common Market). Some European countries, particularly those in Eastern
Europe, have less stable economies than those in Western Europe. A
majority of the European economies continue to be weak, and business
and consumer confidence remains low. The movement of many Eastern
European countries toward market economies, and the movement toward a
unified common market may significantly affect European economies and
markets. Eastern European countries are considered emerging markets.
EUROPE CAPITAL APPRECIATION FUND seeks capital appreciation over the
long term by investing in securities of issuers that have their
principal activities in Eastern and Western Europe. Western and
Eastern European countries are listed above. FMR normally invests at
least 65% of the fund's total assets in the securities of Eastern and
Western European issuers. In addition, the fund's investments are
subject to the same risks as Europe Fund.
The following information replaces the second paragraph under the
heading "France Fund" on page P-27:
Commercial, corporate, and securities laws govern the sale and resale
of securities, while contractual and corporate restrictions may also
apply. Planned privatizations and possible government incentives may
result in major changes in the market and increased investments by
private individuals. However, a future change in government, market,
or economic factors could result in an unfavorable change in the
policy on privatization. In addition, a small number of companies
represent a large percentage of the market.
The following information replaces the second paragraph under the
heading "Hong Kong and China Fund" on page P-28:
Although China has committed by treaty to preserve the economic and
social freedoms enjoyed in Hong Kong for 50 years after regaining
control of Hong Kong in 1997, the continuation of the current form of
the economic system in Hong Kong after the reversion will depend on
the actions of the government of China. Business confidence in Hong
Kong, therefore, can be significantly affected by such developments,
which in turn can affect markets and business performance. In
addition, a small number of companies represent a large percentage of
the market. For example, as of February 28, 1997, Hong Kong & Shanghai
Banking Corporation (HSBC), the largest company traded in the Hong
Kong market, represented approximately 14% of the market's total
capitalization, and the ten largest companies traded in the Hong Kong
market represented approximately 51% of the market's capitalization.
As of March 31, 1997, HSBC represented approximately 18% of the fund's
portfolio. Developments that could negatively affect the value of the
fund's investment in HSBC include, among others, further interest rate
deregulation, a decrease in earnings from HSBC's overseas
subsidiaries, and potential instability in the Hong Kong real estate
market. It is important to note that a substantial portion of the
companies listed on the Hong Kong Stock Exchange are involved in real
estate-related businesses. The securities market in China is
relatively new and China has yet to develop comprehensive securities,
corporate or commercial laws; or to adhere to internationally accepted
accounting principles. There is greater risk of expropriation,
naturalization, freezes, or confiscation in China than in many other
countries. Foreign ownership limits exist on all securities.
The following information replaces the second paragraph under the
heading "Nordic Fund" on page P-28:
The Nordic region is differentiated from the rest of Europe by its
high exposure to cyclical industries such as oil, shipping, and pulp
and paper. In addition, a small number of companies represent a large
percentage of each of the Danish, Finnish, Norwegian and Swedish
markets.
The following information replaces similar information found under the
heading "Equity Securities" in the "Securities and Investment
Practices" section on page P-29:
RESTRICTIONS: With respect to 75% of total assets, each fund may not
purchase more than 10% of the outstanding voting securities of a
single issuer. For Canada Fund, Emerging Markets Fund, Europe Fund,
Europe Capital Appreciation Fund, Japan Fund, Latin America Fund,
Pacific Basin Fund and Southeast Asia Fund, this limitation does not
apply to securities of other investment companies.
The following information replaces similar information found under the
heading "Diversification" in the "Securities and Investment Practices"
section beginning on page P-29:
With respect to 75% of its total assets, each of Canada Fund, Emerging
Markets Fund, Europe Fund, Europe Capital Appreciation Fund, Japan
Fund, Latin America Fund, Pacific Basin Fund, and Southeast Asia Fund
may not purchase a security if, as a result, more than 5% would be
invested in the securities of any issuer. This limitation does not
apply to U.S. Government securities or to securities of other
investment companies. Each fund may not invest more than 25% of its
total assets in any one industry. This limitation does not apply to
U.S. Government securities.
The following information replaces similar information found under the
heading "Fundamental Investment Policies and Restrictions" in the
"Investment Principals and Risks" section on page P-32:
EUROPE FUND seeks growth of capital over the long-term through
investments in securities of issuers that have their principal
activities in Europe.
PACIFIC BASIN FUND seeks growth of capital over the long-term through
investments in securities of issuers that have their principal
activities in the Pacific Basin.
With respect to 75% of its total assets, each of Canada Fund, Emerging
Markets Fund, Europe Fund, Europe Capital Appreciation Fund, Japan
Fund, Latin America Fund, Pacific Basin Fund, and Southeast Asia Fund
may not purchase a security if, as a result, more than 5% would be
invested in the securities of any issuer, and may not purchase more
than 10% of the outstanding voting securities of a single issuer.
These limitations do not apply to U.S. Government securities or to
securities of other investment companies.
The following information replaces similar information found in the
"How to Buy Shares" section on page P-36:
MINIMUM INVESTMENTS
TO OPEN AN ACCOUNT $2,500
For Fidelity IRA, Rollover IRA, SEP-IRA and Keogh accounts $500
TO ADD TO AN ACCOUNT $250
For Fidelity IRA, Rollover IRA, SEP-IRA and Keogh accounts $250
Through regular investment plans* $100
MINIMUM BALANCE $2,000
For Fidelity IRA, Rollover IRA, SEP-IRA and Keogh accounts $500
* FOR MORE INFORMATION ABOUT REGULAR INVESTMENT PLANS, PLEASE REFER TO
"INVESTOR SERVICES," PAGE P-38.
These minimums may vary for investments through Fidelity Portfolio
Advisory Services. There is no minimum account balance or initial or
subsequent investment minimums for certain retirement accounts funded
through salary reduction, or accounts opened with the proceeds of
distributions from such Fidelity retirement accounts. Refer to the
program materials for details.
The following information replaces similar information found in the
"How to Sell Shares" section on page P-37:
IF YOU ARE SELLING SOME BUT NOT ALL OF YOUR SHARES, leave at least
$2,000 worth of shares in the account to keep it open ($500 for
retirement accounts).
The following information replaces similar information found in the
"Transaction Details" section on page P-41:
FIDELITY RESERVES THE RIGHT TO DEDUCT AN ANNUAL MAINTENANCE FEE of
$12.00 from accounts with a value of less than $2,500 (including any
amount paid as a sales charge), subject to an annual maximum charge of
$24.00 per shareholder. It is expected that accounts will be valued on
the second Friday in November of each year. Accounts opened after
September 30 will not be subject to the fee for that year. The fee,
which is payable to the transfer agent, is designed to offset in part
the relatively higher costs of servicing smaller accounts. This fee
will not be deducted from Fidelity brokerage accounts, retirement
accounts (except non-prototype retirement accounts), accounts using
regular investment plans, or if total assets in Fidelity exceed
$30,000. Eligibility for the $30,000 waiver is determined by
aggregating Fidelity accounts maintained by FSC or FBSI which are
registered under the same social security number or which list the
same social security number for the custodian of a Uniform
Gifts/Transfers to Minors Act account.
IF YOUR ACCOUNT BALANCE FALLS BELOW $2,000, you will be given 30 days'
notice to reestablish the minimum balance. If you do not increase your
balance, Fidelity reserves the right to close your account and send
the proceeds to you. Your shares will be redeemed at the NAV on the
day your account is closed.
SUPPLEMENT TO 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
FUNDS OF FIDELITY INVESTMENT TRUST
DECEMBER 30, 1996
STATEMENT OF ADDITIONAL INFORMATION
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOR CANADA FUND
FOUND IN THE "INVESTMENT POLICIES AND LIMITATIONS" SECTION BEGINNING
ON PAGE 2:
(1) with respect to 75% of the fund's total assets, purchase the
securities of any issuer (other than securities issued or guaranteed
by the U.S. Government or any of its agencies or instrumentalities, or
securities of other investment companies) if, as a result, (a) more
than 5% of the fund's total assets would be invested in the securities
of that issuer, or (b) the fund would hold more than 10% of the
outstanding voting securities of that issuer;
(3) borrow money, except that the fund may borrow money for temporary
or emergency purposes (not for leveraging or investment) in an amount
not exceeding 33 1/3% of its total assets (including the amount
borrowed) less liabilities (other than borrowings). Any borrowings
that come to exceed this amount will be reduced within three days (not
including Sundays and holidays) to the extent necessary to comply with
the 33 1/3% limitation;
(5) purchase the securities of any issuer (other than securities
issued or guaranteed by the U.S. Government or any of its agencies or
instrumentalities) if, as a result, more than 25% of the fund's total
assets would be invested in the securities of companies whose
principal business activities are in the same industry;
(6) purchase or sell real estate unless acquired as a result of
ownership of securities or other instruments (but this shall not
prevent the fund from investing in securities or other instruments
backed by real estate or securities of companies engaged in the real
estate business);
THE FOLLOWING INFORMATION SUPPLEMENTS THE INFORMATION FOR CANADA FUND
FOUND IN THE "INVESTMENT POLICIES AND LIMITATIONS" SECTION BEGINNING
ON PAGE 2:
(9) The fund may, notwithstanding any other fundamental investment
policy or limitation, invest all of its assets in the securities of a
single open-end management investment company managed by Fidelity
Management & Research Company or an affiliate or successor with
substantially the same fundamental investment objective, policies, and
limitations as the fund.
(xi) The fund does not currently intend to invest all of its assets in
the securities of a single open-end management investment company
managed by Fidelity Management & Research Company or an affiliate or
successor with substantially the same fundamental investment
objective, policies, and limitations as the fund.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOR EMERGING
MARKETS FUND FOUND IN THE "INVESTMENT POLICIES AND LIMITATIONS"
SECTION BEGINNING ON PAGE 2:
INVESTMENT LIMITATIONS OF EMERGING MARKETS FUND
(EMERGING MARKETS FUND)
THE FOLLOWING ARE THE FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS SET
FORTH IN THEIR ENTIRETY. THE FUND MAY NOT:
(1) with respect to 75% of the fund's total assets, purchase the
securities of any issuer (other than securities issued or guaranteed
by the U.S. Government or any of its agencies or instrumentalities, or
securities of other investment companies) if, as a result, (a) more
than 5% of the fund's total assets would be invested in the securities
of that issuer, or (b) the fund would hold more than 10% of the
outstanding voting securities of that issuer;
(2) issue senior securities, except as permitted under the Investment
Company Act of 1940;
(3) borrow money, except that the fund may borrow money for temporary
or emergency purposes (not for leveraging or investment) in an amount
not exceeding 33 1/3% of its total assets (including the amount
borrowed) less liabilities (other than borrowings). Any borrowings
that come to exceed this amount will be reduced within three days (not
including Sundays and holidays) to the extent necessary to comply with
the 33 1/3% limitation;
(4) underwrite securities issued by others except to the extent that
the fund may be deemed to be an underwriter within the meaning of the
Securities Act of 1933 in the disposition of restricted securities;
(5) purchase the securities of any issuer (other than securities
issued or guaranteed by the U.S. government or any of its agencies or
instrumentalities) if, as a result, more than 25% of the fund's total
assets would be invested in companies whose principal business
activities are in the same industry;
(6) purchase or sell real estate unless acquired as a result of
ownership of securities or other instruments (but this shall not
prevent the fund from investing in securities or other instruments
backed by real estate or securities of companies engaged in the real
estate business);
(7) purchase or sell physical commodities unless acquired as a result
of ownership of securities or other instruments (but this shall not
prevent the fund from purchasing or selling options and futures
contracts or from investing in securities and other instruments backed
by physical commodities); or
(8) lend any security or make any other loan if, as a result, more
than 33 1/3% of its total assets would be lent to other parties, but
this limitation does not apply to purchases of debt securities or to
repurchase agreements.
(9) The fund may, notwithstanding any other fundamental investment
policy or limitation, invest all of its assets in the securities of a
single open-end management investment company managed by Fidelity
Management & Research Company or an affiliate or successor with
substantially the same fundamental investment objective, policies, and
limitations as the fund.
THE FOLLOWING INVESTMENT LIMITATIONS ARE NOT FUNDAMENTAL AND MAY BE
CHANGED WITHOUT SHAREHOLDER APPROVAL.
(i) The fund does not currently intend to sell securities short,
unless it owns or has the right to obtain securities equivalent in
kind and amount to the securities sold short, and provided that
transactions in futures contracts and options are not deemed to
constitute selling securities short.
(ii) The fund does not currently intend to purchase securities on
margin, except that the fund may obtain such short-term credits as are
necessary for the clearance of transactions, and provided that margin
payments in connection with futures contracts and options on futures
contracts shall not constitute purchasing securities on margin.
(iii) The fund may borrow money only (a) from a bank or from a
registered investment company or portfolio for which FMR or an
affiliate serves as investment adviser or (b) by engaging in reverse
repurchase agreements with any party (reverse repurchase agreements
are treated as borrowings for purposes of fundamental investment
limitation (5)). The fund will not purchase any security while
borrowings representing more than 5% of its total assets are
outstanding. The fund will not borrow from other funds advised by FMR
or its affiliates if total outstanding borrowings immediately after
such borrowing would exceed 15% of the fund's total assets.
(iv) The fund does not currently intend to purchase any security if,
as a result, more than 15% of its net assets would be invested in
securities that are deemed to be illiquid because they are subject to
legal or contractual restrictions on resale or because they cannot be
sold or disposed of in the ordinary course of business at
approximately the prices at which they are valued.
(v) The fund does not currently intend to lend assets other than
securities to other parties, except by (a) lending money (up to 5% of
the fund's net assets) to a registered investment company or portfolio
for which FMR or an affiliate serves as investment adviser or (b)
acquiring loans, loan participations, or other forms of direct debt
instruments and, in connection therewith, assuming any associated
unfunded commitments of the sellers. (This limitation does not apply
to purchases of debt securities or to repurchase agreements.)
(vi) The fund does not currently intend to purchase interests in real
estate investment trusts that are not readily marketable, or interests
in real estate limited partnerships that are not listed on an exchange
or traded on the NASDAQ National Market System if, as a result, the
sum of such interests and other investments considered illiquid under
limitation (iv) would exceed 15% as appropriate of the fund's net
assets.
(vii) The fund does not currently intend to (a) purchase securities of
other investment companies, except in the open market where no
commission except the ordinary broker's commission is paid, or (b)
purchase or retain securities issued by other open-end investment
companies. Limitations (a) and (b) do not apply (i) to securities
received as dividends, through offers of exchange, or as a result of a
reorganization, consolidation, or merger, or (ii) to securities of
other open-end investment companies managed by FMR or a successor or
affiliate purchased pursuant to an exemptive order granted by the SEC.
(viii) The fund does not currently intend to purchase the securities
of any issuer (other than securities issued or guaranteed by domestic
or foreign governments or political subdivisions thereof) if, as a
result, more than 5% of its total assets would be invested in the
securities of business enterprises that, including predecessors, have
a record of less than three years of continuous operation.
(ix) The fund does not currently intend to purchase warrants, valued
at the lower of cost or market, in excess of 10% of the fund's net
assets. Included in that amount, but not to exceed 2% of net assets,
are warrants whose underlying securities are not traded on principal
domestic or foreign exchanges. Warrants acquired by the fund in units
or attached to securities are not subject to these restrictions.
(x) The fund does not currently intend to invest in oil, gas, or other
mineral exploration or development programs or leases.
(xi) The fund does not currently intend to purchase the securities of
any issuer if those officers and Trustees of the trust and those
officers and directors of FMR who individually own more than 1/2 of 1%
of the securities of such issuer together own more than 5% of such
issuer's securities.
(xii) The fund does not currently intend to invest all of its assets
in the securities of a single open-end management investment company
managed by Fidelity Management & Research Company or an affiliate or
successor with substantially the same fundamental investment
objective, policies, and limitations as the fund.
For purposes of limitation (viii), pass-through entities and other
special purpose vehicles or pools of financial assets, such as issuers
of asset-backed securities or investment companies, are not considered
"business enterprises."
For the fund's limitations on futures and options transactions, see
the section entitled "Limitations on Futures and Options Transactions"
beginning on page 25.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOR EUROPE FUND
FOUND IN THE "INVESTMENT POLICIES AND LIMITATIONS" SECTION BEGINNING
ON PAGE 2:
(1) with respect to 75% of the fund's total assets, purchase the
securities of any issuer (other than securities issued or guaranteed
by the U.S. Government or any of its agencies or instrumentalities, or
securities of other investment companies) if, as a result, (a) more
than 5% of the fund's total assets would be invested in the securities
of that issuer, or (b) the fund would hold more than 10% of the
outstanding voting securities of that issuer;
(3) borrow money, except that the fund may borrow money for temporary
or emergency purposes (not for leveraging or investment) in an amount
not exceeding 33 1/3% of the value of its total assets (including the
amount borrowed) less liabilities (other than borrowings). Any
borrowings that come to exceed this amount will be reduced within
three days (not including Sundays and holidays) to the extent
necessary to comply with the 33 1/3% limitation;
(4) underwrite securities issued by others, except to the extent that
the fund may be considered an underwriter within the meaning of the
Securities Act of 1933 in the disposition of restricted securities;
(5) purchase the securities of any issuer (other than securities
issued or guaranteed by the U.S. Government or any of its agencies or
instrumentalities) if, as a result, more than 25% of the fund's total
assets would be invested in the securities of companies whose
principal business activities are in the same industry;
(6) purchase or sell real estate unless acquired as a result of
ownership of securities or other instruments (but this shall not
prevent the fund from investing in securities or other instruments
backed by real estate or securities of companies engaged in the real
estate business);
THE FOLLOWING INFORMATION SUPPLEMENTS THE INFORMATION FOR EUROPE FUND
FOUND IN THE "INVESTMENT POLICIES AND LIMITATIONS" SECTION BEGINNING
ON PAGE 2:
(9) The fund may, notwithstanding any other fundamental investment
policy or limitation, invest all of its assets in the securities of a
single open-end management investment company managed by Fidelity
Management & Research Company or an affiliate or successor with
substantially the same fundamental investment objective, policies, and
limitations as the fund.
(xi) The fund does not currently intend to invest all of its assets in
the securities of a single open-end management investment company
managed by Fidelity Management & Research Company or an affiliate or
successor with substantially the same fundamental investment
objective, policies, and limitations as the fund.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOR EUROPE
CAPITAL APPRECIATION FUND FOUND IN THE "INVESTMENT POLICIES AND
LIMITATIONS" SECTION BEGINNING ON PAGE 2:
(1) with respect to 75% of the fund's total assets, purchase the
securities of any issuer (other than securities issued or guaranteed
by the U.S. government or any of its agencies or instrumentalities or
securities of other investment companies) if, as a result, (a) more
than 5% of the fund's total assets would be invested in the securities
of that issuer, or (b) the fund would hold more than 10% of the
outstanding voting securities of that issuer;
THE FOLLOWING INFORMATION SUPPLEMENTS THE INFORMATION FOR EUROPE
CAPITAL APPRECIATION FUND FOUND IN THE "INVESTMENT POLICIES AND
LIMITATIONS" SECTION BEGINNING ON PAGE 2:
(9) The fund may, notwithstanding any other fundamental investment
policy or limitation, invest all of its assets in the securities of a
single open-end management investment company managed by Fidelity
Management & Research Company or an affiliate or successor with
substantially the same fundamental investment objective, policies, and
limitations as the fund.
(xii) The fund does not currently intend to invest all of its assets
in the securities of a single open-end management investment company
managed by Fidelity Management & Research Company or an affiliate or
successor with substantially the same fundamental investment
objective, policies, and limitations as the fund.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOR JAPAN FUND
FOUND IN THE "INVESTMENT POLICIES AND LIMITATIONS" SECTION BEGINNING
ON PAGE 2:
(1) with respect to 75% of the fund's total assets, purchase the
securities of any issuer (other than securities issued or guaranteed
by the U.S. government or any of its agencies or instrumentalities or
securities of other investment companies) if, as a result, (a) more
than 5% of the fund's total assets would be invested in the securities
of that issuer, or (b) the fund would hold more than 10% of the
outstanding voting securities of that issuer;
THE FOLLOWING INFORMATION SUPPLEMENTS THE INFORMATION FOR JAPAN FUND
FOUND IN THE "INVESTMENT POLICIES AND LIMITATIONS" SECTION BEGINNING
ON PAGE 2:
(9) The fund may, notwithstanding any other fundamental investment
policy or limitation, invest all of its assets in the securities of a
single open-end management investment company managed by Fidelity
Management & Research Company or an affiliate or successor with
substantially the same fundamental investment objective, policies, and
limitations as the fund.
(xii) The fund does not currently intend to invest all of its assets
in the securities of a single open-end management investment company
managed by Fidelity Management & Research Company or an affiliate or
successor with substantially the same fundamental investment
objective, policies, and limitations as the fund.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOR LATIN
AMERICA FUND FOUND IN THE "INVESTMENT POLICIES AND LIMITATIONS"
SECTION BEGINNING ON PAGE 2:
(1) with respect to 75% of the fund's total assets, purchase the
securities of any issuer (other than securities issued or guaranteed
by the U.S. government or any of its agencies or instrumentalities or
securities of other investment companies) if, as a result, (a) more
than 5% of the fund's total assets would be invested in the securities
of that issuer, or (b) the fund would hold more than 10% of the
outstanding voting securities of that issuer;
THE FOLLOWING INFORMATION SUPPLEMENTS THE INFORMATION FOR LATIN
AMERICA FUND FOUND IN THE "INVESTMENT POLICIES AND LIMITATIONS"
SECTION BEGINNING ON PAGE 2:
(9) The fund may, notwithstanding any other fundamental investment
policy or limitation, invest all of its assets in the securities of a
single open-end management investment company managed by Fidelity
Management & Research Company or an affiliate or successor with
substantially the same fundamental investment objective, policies, and
limitations as the fund.
(xii) The fund does not currently intend to invest all of its assets
in the securities of a single open-end management investment company
managed by Fidelity Management & Research Company or an affiliate or
successor with substantially the same fundamental investment
objective, policies, and limitations as the fund.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOR PACIFIC
BASIN FUND FOUND IN THE "INVESTMENT POLICIES AND LIMITATIONS" SECTION
BEGINNING ON PAGE 2:
(1) with respect to 75% of the fund's total assets, purchase the
securities of any issuer (other than securities issued or guaranteed
by the U.S. Government or any of its agencies or instrumentalities, or
securities of other investment companies) if, as a result, (a) more
than 5% of the fund's total assets would be invested in the securities
of that issuer, or (b) the fund would hold more than 10% of the
outstanding voting securities of that issuer;
(3) borrow money, except that the fund may borrow money for temporary
or emergency purposes (not for leveraging or investment) in an amount
not exceeding 33 1/3% of its total assets (including the amount
borrowed) less liabilities (other than borrowings). Any borrowings
that come to exceed this amount will be reduced within three days (not
including Sundays and holidays) to the extent necessary to comply with
the 33 1/3% limitation;
(4) underwrite securities issued by others, except to the extent that
the fund may be considered an underwriter within the meaning of the
Securities Act of 1933 in the disposition of restricted securities;
(5) purchase the securities of any issuer (other than securities
issued or guaranteed by the U.S. Government or any of its agencies or
instrumentalities) if, as a result, more than 25% of the fund's total
assets would be invested in the securities of companies whose
principal business activities are in the same industry;
(6) purchase or sell real estate unless acquired as a result of
ownership of securities or other instruments (but this shall not
prevent the fund from investing in securities or other instruments
backed by real estate or securities of companies engaged in the real
estate business);
THE FOLLOWING INFORMATION SUPPLEMENTS THE INFORMATION FOR PACIFIC
BASIN FUND FOUND IN THE "INVESTMENT POLICIES AND LIMITATIONS" SECTION
BEGINNING ON PAGE 2:
(9) The fund may, notwithstanding any other fundamental investment
policy or limitation, invest all of its assets in the securities of a
single open-end management investment company managed by Fidelity
Management & Research Company or an affiliate or successor with
substantially the same fundamental investment objective, policies, and
limitations as the fund.
(xi) The fund does not currently intend to invest all of its assets in
the securities of a single open-end management investment company
managed by Fidelity Management & Research Company or an affiliate or
successor with substantially the same fundamental investment
objective, policies, and limitations as the fund.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOR SOUTHEAST
ASIA FUND FOUND IN THE "INVESTMENT POLICIES AND LIMITATIONS" SECTION
BEGINNING ON PAGE 2:
(1) with respect to 75% of the fund's total assets, purchase the
securities of any issuer (other than securities issued or guaranteed
by the U.S. government or any of its agencies or instrumentalities or
securities of other investment companies) if, as a result, (a) more
than 5% of the fund's total assets would be invested in the securities
of that issuer, or (b) the fund would hold more than 10% of the
outstanding voting securities of that issuer;
THE FOLLOWING INFORMATION SUPPLEMENTS THE INFORMATION FOR SOUTHEAST
ASIA FUND FOUND IN THE "INVESTMENT POLICIES AND LIMITATIONS" SECTION
BEGINNING ON PAGE 2:
(9) The fund may, notwithstanding any other fundamental investment
policy or limitation, invest all of its assets in the securities of a
single open-end management investment company managed by Fidelity
Management & Research Company or an affiliate or successor with
substantially the same fundamental investment objective, policies, and
limitations as the fund.
(xiv) The fund does not currently intend to invest all of its assets
in the securities of a single open-end management investment company
managed by Fidelity Management & Research Company or an affiliate or
successor with substantially the same fundamental investment
objective, policies, and limitations as the fund.
EFFECTIVE JANUARY 1, 1997, RICHARD J. FLYNN AND EDWARD H. MALONE
RETIRED AS MEMBERS OF THE BOARD OF TRUSTEES FOR FIDELITY INVESTMENT
TRUST. THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN
THE "TRUSTEES AND OFFICERS" SECTION BEGINNING ON PAGE 58:
TRUSTEES AND OFFICERS
The Trustees, Members of the Advisory Board, and executive officers of
the trust are listed below. Except as indicated, each individual has
held the office shown or other offices in the same company for the
last five years. All persons named as Trustees and Members of the
Advisory Board also serve in similar capacities for other funds
advised by FMR. The business address of each Trustee, Member of the
Advisory Board, and officer who is an "interested person" (as defined
in the Investment Company Act of 1940) is 82 Devonshire Street,
Boston, Massachusetts 02109, which is also the address of FMR. The
business address of all the other Trustees is Fidelity Investments,
P.O. Box 9235, Boston, Massachusetts 02205-9235. Those Trustees and
Members of the Advisory Board who are "interested persons" by virtue
of their affiliation with either the trust or FMR are indicated by an
asterisk (*).
*J. GARY BURKHEAD (55), Member of the Advisory Board (1997), is Vice
Chairman and a Member of the Board of Directors of FMR Corp. (1997)
and President and Chief Executive Officer of the Fidelity
Institutional Group (1997). Previously, Mr. Burkhead served as
President of Fidelity Management & Research Company.
WILLIAM O. McCOY (62), Trustee (1997), is the Vice President of
Finance for the University of North Carolina (16-school system, 1995).
Prior to his retirement in December 1994, Mr. McCoy was Vice Chairman
of the Board of BellSouth Corporation (telecommunications, 1984) and
President of BellSouth Enterprises (1986). He is currently a Director
of Liberty Corporation (holding company, 1984), Weeks Corporation of
Atlanta (real estate, 1994), Carolina Power and Light Company
(electric utility, 1996), and the Kenan Transport Co. (1996).
Previously, he was a Director of First American Corporation (bank
holding company, 1979-1996). In addition, Mr. McCoy serves as a member
of the Board of Visitors for the University of North Carolina at
Chapel Hill (1994) and for the Kenan-Flager Business School
(University of North Carolina at Chapel Hill, 1988).
THE FOLLOWING INFORMATION SUPPLEMENTS THE INFORMATION FOUND IN THE
"TRUSTEES AND OFFICERS" SECTION BEGINNING ON PAGE 58:
ROBERT M. GATES (53), Trustee (1997), is a consultant, author, and
lecturer (1993). Mr. Gates was Director of the Central Intelligence
Agency (CIA) from 1991-1993. From 1989 to 1991, Mr. Gates served as
Assistant to the President of the United States and Deputy National
Security Advisor. Mr. Gates is currently a Trustee for the Forum For
International Policy, a Board Member for the Virginia Neurological
Institute, and a Senior Advisor of the Harvard Journal of World
Affairs. In addition, Mr. Gates also serves as a member of the
corporate board for LucasVarity PLC (automotive components and diesel
engines), Charles Stark Draper Laboratory (non-profit), NACCO
Industries, Inc. (mining and manufacturing), and TRW Inc. (original
equipment and replacement products).
*ROBERT C. POZEN (51), Trustee (1997) and Senior Vice President, is
also President and a Director of FMR (1997); and President and a
Director of FMR Texas Inc. (1997), Fidelity Management & Research
(U.K.) Inc. (1997), and Fidelity Management & Research (Far East) Inc.
(1997). Previously, Mr. Pozen served as General Counsel, Managing
Director, and Senior Vice President of FMR Corp.
RICHARD A. SPILLANE, JR. (46), is Vice President of certain Equity
Funds and Senior Vice President of FMR (1997). Since joining Fidelity
in 1988, Mr. Spillane served as Director of Research from 1988 to
1994, and was chief investment officer for Fidelity International
Limited from 1994 to 1997.
THE FOLLOWING INFORMATION REPLACES THE BIOGRAPHICAL INFORMATION FOR
KENNETH A. RATHGEBER IN THE "TRUSTEES AND OFFICERS" SECTION ON PAGE
60:
RICHARD A. SILVER (50), Treasurer (1997), is Treasurer of the Fidelity
funds and is an employee of FMR (1997). Before joining FMR, Mr. Silver
served as Executive Vice President, Fund Accounting & Administration
at First Data Investor Services Group. Inc. (1996 - 1997). Prior to
1996, Mr. Silver was Senior Vice President and Chief Financial Officer
at The Colonial Group, Inc. Mr. Silver also served as Chairman of the
Accounting/Treasurer's Committee of the Investment Company Institute
(1987 - 1993).
THE FOLLOWING INFORMATION REPLACES THE SIMILAR INFORMATION FOUND IN
THE "TRUSTEES AND OFFICERS" SECTION ON PAGES 61 AND 62:
The following table sets forth information describing the compensation
of each current trustee or Member of the Advisory Board of each fund
for his or her services as trustee for the fiscal year ended October
31, 1996.
COMPENSATION TABLE
AGGREGATE COMPENSATION
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
J. GARY RALPH PHYLLIS RICHARD EDWARD C. E. DONALD PETER GERALD C. EDWARD MARVIN THOMAS WILLIAM
BURKHEAD JOHNSON J. S. L.
** F. COX BURKE J. FLYNN 3d** BRADLEY KIRK LYNCH** MCDONOUGH H. MANN R. O.
DAVIS JONES MALONE WILLIAMS MCCOY+
CANADA
FUND $ 0 $ 58 $ 58 $ 75 $ 0 $ 59 $ 59 $ 0 $ 58 $ 57 $ 57 $ 59 $ 20
EMERGING $ 0 $ 451 $ 424 $ 560 $ 0 $ 428 $ 433 $ 0 $ 429 $ 440 $ 440 $ 434 $ 222
MARKETS FUND
EUROPE
FUND $ 0 $ 186 $ 180 $ 239 $ 0 $ 182 $ 185 $ 0 $ 183 $ 182 $ 182 $ 185 $ 91
EUROPE
CAPITAL $ 0 $ 59 $ 58 $ 77 $ 0 $ 59 $ 60 $ 0 $ 59 $ 58 $ 58 $ 60 $ 25
APPRECIATION
FUND
FRANCE
FUND $ 0 $ 2 $ 2 $ 2 $ 0 $ 2 $ 2 $ 0 $ 2 $ 2 $ 2 $ 2 $ 1
GERMANY
FUND $ 0 $ 2 $ 2 $ 2 $ 0 $ 2 $ 2 $ 0 $ 2 $ 2 $ 2 $ 2 $ 1
HONG
KONG $ 0 $ 18 $ 16 $ 23 $ 0 $ 16 $ 17 $ 0 $ 17 $ 18 $ 18 $ 17 $ 14
AND CHINA
FUND
JAPAN
FUND $ 0 $ 131 $ 124 $ 163 $ 0 $ 126 $ 127 $ 0 $ 125 $ 128 $ 128 $ 127 $ 60
JAPAN
SMALL $ 0 $ 35 $ 30 $ 43 $ 0 $ 30 $ 31 $ 0 $ 32 $ 33 $ 33 $ 32 $ 24
COMPANIES
FUND
LATIN $ 0 $ 203 $ 162 $ 219 $ 0 $ 164 $ 166 $ 0 $ 167 $ 198 $ 198 $ 167 $ 104
AMERICA FUND
NORDIC
FUND $ 0 $ 3 $ 3 $ 4 $ 0 $ 3 $ 3 $ 0 $ 3 $ 3 $ 3 $ 3 $ 2
PACIFIC
BASIN $ 0 $ 198 $ 185 $ 245 $ 0 $ 186 $ 189 $ 0 $ 188 $ 193 $ 193 $ 190 $ 105
FUND
SOUTHEAST
ASIA $ 0 $ 288 $ 265 $ 350 $ 0 $ 268 $ 271 $ 0 $ 269 $ 281 $ 281 $ 271 $ 141
FUND
UNITED $ 0 $ 1 $ 1 $ 1 $ 0 $ 1 $ 1 $ 0 $ 1 $ 1 $ 1 $ 1 $ 1
KINGDOM FUND
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
TRUSTEES PENSION OR ESTIMATED ANNUAL TOTAL
RETIREMENT BENEFITS BENEFITS UPON COMPENSATION
ACCRUED AS PART OF RETIREMENT FROM THE FUND
FUND EXPENSES FROM THE FUND COMPLEX*
FROM THE FUND COMPLEX*
COMPLEX*
J. GARY BURKHEAD** $ 0 $ 0 $ 0
RALPH F. COX 5,200 52,000 128,000
PHYLLIS BURKE DAVIS 5,200 52,000 125,000
RICHARD J. FLYNN 0 52,000 160,500
EDWARD C. JOHNSON 3D** 0 0 0
E. BRADLEY JONES 5,200 49,400 128,000
DONALD J. KIRK 5,200 52,000 129,500
PETER S. LYNCH** 0 0 0
GERALD C. MCDONOUGH 5,200 52,000 128,000
EDWARD H. MALONE 5,200 44,200 128,000
MARVIN L. MANN 5,200 52,000 128,000
THOMAS R. WILLIAMS 5,200 52,000 125,000
WILLIAM O. MCCOY+ N/A N/A 0
</TABLE>
* Information is as of December 31, 1995 for 219 funds in the complex.
** Interested trustees of the fund and Mr. Burkhead are compensated by
FMR.
+ During the period from May 1, 1996 through December 31, 1996,
William O. McCoy served as a Member of the Advisory Board of Fidelity
Investment Trust. Mr. McCoy was appointed to the Board of Trustees of
Fidelity Investment Trust effective January 1, 1997.
EFFECTIVE OCTOBER 1, 1997, THE FOLLOWING INFORMATION REPLACES SIMILAR
INFORMATION FOUND IN THE "MANAGEMENT CONTRACTS" SECTION BEGINNING ON
PAGE 62:
FMR is each fund's manager pursuant to management contracts dated
October 1, 1997, which were approved by shareholders on September 17,
1997.
The following is the fee schedule for each fund.
GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES
AVERAGE GROUP ANNUALIZED GROUP NET EFFECTIVE ANNUAL
ASSETS RATE ASSETS FEE RATE
0 - $3 BILLION .5200% $ 0.5 BILLION .5200%
3 - 6 .4900 25 .4238
6 - 9 .4600 50 .3823
9 - 12 .4300 75 .3626
12 - 15 .4000 100 .3512
15 - 18 .3850 125 .3430
18 - 21 .3700 150 .3371
21 - 24 .3600 175 .3325
24 - 30 .3500 200 .3284
30 - 36 .3450 225 .3253
36 - 42 .3400 250 .3223
42 - 48 .3350 275 .3198
48 - 66 .3250 300 .3175
66 - 84 .3200 325 .3153
84 - 102 .3150 350 .3133
102 - 138 .3100
138 - 174 .3050
174 - 228 .3000
228 - 282 .2950
282 - 336 .2900
OVER 336 .2850
Prior to October 1, 1997, the group fee rate was based on a schedule
with breakpoints ending at .3000% for average group assets in excess
of $174 billion. The group fee rate breakpoints shown above for
average group assets in excess of $138 billion and under $228 billion
were voluntarily adopted by FMR on January 1, 1992. The additional
breakpoints shown above for average group assets in excess of $228
billion were voluntarily adopted by FMR on November 1, 1993.
On August 1, 1994, FMR voluntarily revised the prior extensions to the
group fee rate schedule, and added new breakpoints for average group
assets in excess of $210 billion and under $390 billion as shown in
the schedule below. The revised group fee rate schedule is identical
to the above schedule for average group assets under $210 billion.
On January 1, 1996, FMR voluntarily added new breakpoints to the
revised schedule for average group assets in excess of $390 billion.
The revised group fee rate schedule and its extensions provide for
lower management fee rates as FMR's assets under management increase.
Each fund's current management contract reflects the group fee rate
schedule above for average group assets under $210 billion and the
group fee rate schedule below for average group assets in excess of
$210 billion.
GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES
AVERAGE GROUP ANNUALIZED GROUP NET EFFECTIVE ANNUAL
ASSETS RATE ASSETS FEE RATE
138 - $174 BILLION .3050% $150 BILLION .3371%
174 - 210 .3000 175 .3325
210 - 246 .2950 200 .3284
246 - 282 .2900 225 .3249
282 - 318 .2850 250 .3219
318 - 354 .2800 275 .3190
354 - 390 .2750 300 .3163
390 - 426 .2700 325 .3137
426 - 462 .2650 350 .3113
462 - 498 .2600 375 .3090
498 - 534 .2550 400 .3067
OVER 534 .2500 425 .3046
450 .3024
475 .3003
500 .2982
525 .2962
550 .2942
THE FOLLOWING INFORMATION REPLACES THE FIRST PARAGRAPH UNDER
"COMPUTING THE PERFORMANCE ADJUSTMENT" IN THE "MANAGEMENT CONTRACTS"
SECTION ON PAGE 65:
COMPUTING THE PERFORMANCE ADJUSTMENT. The basic fee for Canada Fund,
Europe Fund, Europe Capital Appreciation Fund, Japan Fund, Pacific
Basin Fund and Southeast Asia Fund is subject to upward or downward
adjustment, depending upon whether, and to what extent, each fund's
investment performance for the performance period exceeds, or is
exceeded by, the record of the Toronto Stock Exchange (TSE) 300,
Morgan Stanley Capital International Europe Index, Morgan Stanley
Capital International Europe Index, Tokyo Stock Exchange Index, Morgan
Stanley Capital International Pacific Index, and Morgan Stanley
Capital International Combined Far East ex-Japan Free Index,
respectively, over the same period. The performance period for Europe
Capital Appreciation Fund commenced on January 1, 1994. Starting with
the twelfth month, the performance adjustment takes effect. Each month
subsequent to the twelfth month, a new month is added to the
performance period until the performance period includes 36 months.
Thereafter, the performance period consists of the most recent month
plus the previous 35 months.
Each percentage point of difference, calculated to the nearest 0.01%
(up to a maximum difference of (plus/minus)10.00) is multiplied by a
performance adjustment rate of 0.02%.
The performance comparison is made at the end of each month. One
twelfth (1/12) of this rate is then applied to each fund's average net
assets for the entire performance period, giving a dollar amount which
will be added to (or subtracted from) the basic fee.
The maximum annualized adjustment rate is (plus/minus)0.20% of a
fund's average net assets over the performance period.
THE FOLLOWING INFORMATION HAS BEEN ELIMINATED FROM THE "MANAGEMENT
CONTRACTS" SECTION ON PAGE 67:
To comply with the California Code of Regulations, FMR will reimburse
each fund if and to the extent that each fund's aggregate annual
operating expenses exceed specified percentages of its average net
assets. The applicable percentages are 2 1/2% of the first $30
million, 2% of the next $70 million, and 1 1/2% of average net assets
in excess of $100 million. When calculating each fund's expenses for
purposes of this regulation, each fund may exclude interest, taxes,
brokerage commissions, and extraordinary expenses, as well as a
portion of its custodian fees attributable to investments in foreign
securities.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"MANAGEMENT CONTRACTS" SECTION ON PAGE 67:
SUB-ADVISERS. On behalf of the funds, FMR has entered into
sub-advisory agreements with FMR U.K., FMR Far East, and FIIA. FIIA,
in turn, has entered into a sub-advisory agreement with FIIAL U.K. On
behalf of Emerging Markets Fund, Hong Kong and China Fund, Japan Fund,
Japan Small Companies Fund, Pacific Basin Fund, and Southeast Asia
Fund, FMR also entered into a sub-advisory agreement with FIJ.
Pursuant to the sub-advisory agreements, FMR may receive investment
advice and research services outside the United States from the
sub-advisers. On behalf of each fund, FMR may also grant the
sub-advisers investment management authority as well as the authority
to buy and sell securities if FMR believes it would be beneficial to
the funds.
FMR entered into the sub-advisory agreements described above with
respect to Canada Fund and Europe Fund on March 1, 1992 following
shareholder approval of the agreements on February 19, 1992. FMR
entered into the sub-advisory agreements described above with respect
to Emerging Markets Fund and FMR U.K., FMR Far East, and FIIA and
Pacific Basin Fund and FMR U.K., FMR Far East, and FIIA on March 1,
1992 following shareholder approval of the agreements on February 19,
1992. FMR entered into the sub-advisory agreements with respect to
Emerging Markets Fund and FIJ and Pacific Basin Fund and FIJ on
October 1, 1997 following shareholder approval of the agreements on
September 17, 1997. FMR entered into the sub-advisory agreements
described above with respect to Japan Fund on July 16, 1992, which was
approved by FMR, then the sole shareholder of Japan Fund, on September
10, 1992; with respect to Latin America Fund and Southeast Asia Fund
on March 18, 1993, which were approved by FMR, then the sole
shareholder of Latin America Fund and Southeast Asia Fund, on March
24, 1993; with respect to Europe Capital Appreciation Fund on November
18, 1993, which was approved by FMR, then the sole shareholder of the
fund on November 18, 1993; and with respect to France Fund, Germany
Fund, Hong Kong and China Fund, Japan Small Companies Fund, Nordic
Fund, and United Kingdom Fund on September 14, 1995, which were
approved by FMR as the then sole shareholder of each fund on October
17, 1995.
THE FOLLOWING INFORMATION REPLACES THE SIMILAR INFORMATION FOUND IN
THE "MANAGEMENT CONTRACTS" SECTION ON PAGE 68:
Currently, FIIA exercises discretionary management authority over
Southeast Asia Fund, Hong Kong and China Fund, Japan Fund, and Pacific
Basin Fund in its capacity as sub-adviser. Currently, FIIAL U.K.
exercises discretionary management authority over Emerging Markets
Fund, Europe Fund, France Fund, Germany Fund, Nordic Fund, and United
Kingdom Fund in its capacity as sub-adviser. Currently, FIJ exercises
discretionary management authority over Japan Small Companies Fund in
its capacity as sub-adviser.
THE FOLLOWING INFORMATION REPLACES THE SIMILAR INFORMATION FOUND IN
THE "MANAGEMENT CONTRACTS" SECTION ON PAGE 69:
For providing discretionary investment management and executing
portfolio transactions on behalf of the funds, the fees paid to FIIA,
FIIAL U.K., and FIJ for the fiscal years ended October 1996, 1995, and
1994 are listed in the table below. There were no fees paid to FMR
U.K. and FMR Far East for the fiscal years ended October 1996, 1995,
and 1994.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FUND NAME FISCAL YEAR ENDED FIIA FIIAL U.K. FIJ
OCTOBER
CANADA FUND 1996 $ 0 $ 0 $ 0
1995 0 0 0
1994 0 0 0
EMERGING MARKETS FUND 1996 $ 0 $ 0 $ 0
1995 0 0 0
1994 0 0 0
EUROPE FUND 1996 $ 2,343,797 $ 1,178,141 $ 0
1995 1,812,402 0 0
1994 1,756,433 0 0
EUROPE CAPITAL APPRECIATION FUND 1996 $ 0 $ 0 $ 0
1995 0 0 0
1994 0 0 0
FUND NAME FISCAL YEAR ENDED FIIA FIIAL U.K. FIJ
OCTOBER
FRANCE FUND 1996 $ 20,506 $ 9,746 $ 0
1995 0 0 0
1994 0 0 0
GERMANY FUND 1996 $ 20,660 $ 9,580 $ 0
1995 0 0 0
1994 0 0 0
HONG KONG AND CHINA FUND 1996 $ 219,845 $ 0 $ 0
1995 0 0 0
1994 0 0 0
JAPAN FUND 1996 $ 675,784 $ 0 $ 596,553
1995 1,311,538 0 0
1994 305,758 0 0
JAPAN SMALL COMPANIES FUND 1996 $ 278,610 $ 144,816 $ 80,585
1995 0 0 0
1994 0 0 0
LATIN AMERICA FUND 1996 $ 0 $ 0 $ 0
1995 0 0 0
1994 0 0 0
NORDIC FUND 1996 $ 35,579 $ 14,299 $ 0
1995 0 0 0
1994 0 0 0
PACIFIC BASIN FUND 1996 $ 2,317,762 $ 0 $ 0
1995 1,550,062 0 0
1994 2,190,484 0 0
SOUTHEAST ASIA FUND 1996 $ 2,773,021 $ 0 $ 0
1995 2,541,446 0 0
1994 2,844,499 0 0
UNITED KINGDOM FUND 1996 $ 7,749 $ 3,597 $ 0
1995 0 0 0
1994 0 0 0
</TABLE>
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"DESCRIPTION OF THE TRUST" SECTION ON PAGE 72:
VOTING RIGHTS. Each fund's capital consists of shares of beneficial
interest. As a shareholder, you receive one vote for each dollar value
of net asset value you own. The shares have no preemptive or
conversion rights; the voting and dividend rights, the right of
redemption, and the privilege of exchange are described in the
Prospectus. Shares are fully paid and nonassessable, except as set
forth under the heading "Shareholder and Trustee Liability" above.
Shareholders representing 10% or more of the trust or a fund may, as
set forth in the Declaration of Trust, call meetings of the trust or a
fund for any purpose related to the trust or fund, as the case may be,
including, in the case of a meeting of the entire trust, the purpose
of voting on removal of one or more Trustees. The trust or any fund
may be terminated upon the sale of its assets to another open-end
management investment company, or upon liquidation and distribution of
its assets, if approved by vote of the holders of a majority of the
trust or the fund, as determined by the current value of each
shareholder's investment in the fund or trust. If not so terminated,
the trust and the funds will continue indefinitely. Each fund may
invest all of its assets in another investment company.
