SUPPLEMENT TO FIDELITY'S TARGETED INTERNATIONAL EQUITY FUNDS
DECEMBER 30, 1998 PROSPECTUS
The following information replaces similar information for Japan
Small Companies Fund found in the "Investment Summary" section on page
P-6:
(small solid bullet) Investing at least 65% of total assets in
securities of Japanese issuers with small market capitalizations
(those with market capitalizations similar to companies in the Tokyo
Stock Exchange Second Section Index or the JASDAQ Stock Index).
The following information replaces similar information for Japan
Small Companies Fund found in the "Investment Details" section on page
P-23:
FMR normally invests at least 65% of the fund's total assets in
securities of Japanese issuers with small market capitalizations.
Small market capitalization issuers are those whose market
capitalization is similar to the market capitalization of companies in
the Tokyo Stock Exchange (TSE) Second Section Index or the JASDAQ
Stock Index at the time of the fund's investment. Issuers whose
capitalization no longer meets this definition after purchase continue
to be considered to have a small market capitalization for purposes of
the 65% policy. As of May 31, 1999, the TSE Second Section Index
included companies with capitalizations between $0.7 million and $7.9
billion. As of May 31, 1999, the JASDAQ Stock Index included companies
with capitalizations between $2.7 million and $7.1 billion. The size
of companies in these indexes changes with market conditions and the
composition of the indexes. FMR may also invest the fund's assets in
Japanese issuers with larger market capitalizations and in
non-Japanese issuers. FMR normally invests the fund's assets primarily
in common stocks.
The following information replaces similar information found in the
"Investment Details" section beginning on page P-24:
PRINCIPAL INVESTMENT RISKS
Many factors affect each fund's performance. A fund's share price
changes daily based on changes in market conditions and interest rates
and in response to other economic, political or financial
developments. A fund's reaction to these developments will be affected
by the types of the securities in which the fund invests, the
financial condition, industry and economic sector, and geographic
location of an issuer, and the fund's level of investment in the
securities of that issuer. Because FMR concentrates each fund's
investments in a particular country or group of countries, each fund's
performance is expected to be closely tied to economic and political
conditions within that country or group of countries and to be more
volatile than the performance of more geographically diversified
funds. When you sell your shares of a fund, they could be worth more
or less than what you paid for them.
The following factors may significantly affect a fund's performance:
STOCK MARKET VOLATILITY. The value of equity securities fluctuates in
response to issuer, political, market and economic developments. In
the short term, equity prices can fluctuate dramatically in response
to these developments. Different parts of the market and different
types of equity securities can react differently to these
developments. For example, large cap stocks can react differently than
small cap stocks, and "growth" stocks can react differently than
"value" stocks. Issuer, political or economic developments can affect
a single issuer, issuers within an industry or economic sector or
geographic region, or the market as a whole.
FOREIGN EXPOSURE. Foreign securities, foreign currencies, and
securities issued by U.S. entities with substantial foreign operations
can involve additional risks relating to political, economic or
regulatory conditions in foreign countries. These risks include
fluctuations in foreign currencies; withholding or other taxes;
trading settlement, custodial and other operational risks; and the
less stringent investor protection and disclosure standards of some
foreign markets. For example, many foreign countries are less prepared
than the United States to properly process and calculate information
related to dates from and after January 1, 2000, which could result in
difficulty pricing foreign investments and failure by foreign issuers
to pay timely dividends, interest or principal. All of these factors
can make foreign investments, especially those in emerging markets,
more volatile and potentially less liquid than U.S. investments. In
addition, foreign markets can perform differently than the U.S.
market.
The following information replaces similar information found in the
"Investment Details" section on page P-25:
The NORDIC economies are dependent on the export of natural resources
and natural resource products. Efforts to comply with the EMU
restrictions by Finland, Denmark and Sweden have resulted in reduced
government spending and higher unemployment. Norway has elected not to
join the EU and the EMU and, as a result, has more flexibility to
pursue different fiscal and economic goals. In addition a small number
of companies and industries represent a large portion of the market in
each of Denmark, Finland, Norway and Sweden.
The following information replaces similar information found in the
"Investment Details" section on page P-26:
ISSUER-SPECIFIC CHANGES. Changes in the financial condition of an
issuer, changes in specific economic or political conditions that
affect a particular type of security or issuer, and changes in general
economic or political conditions can affect the value of an issuer's
securities.
The following information replaces similar information found in the
"Buying and Selling Shares" section on page P-28:
When you place an order to buy shares, note the following:
(small solid bullet) All of your purchases must be made in U.S.
dollars and checks must be drawn on U.S. banks.
(small solid bullet) Fidelity does not accept cash.
(small solid bullet) When making a purchase with more than one check,
each check must have a value of at least $50.
(small solid bullet) Fidelity reserves the right to limit the number
of checks processed at one time.
(small solid bullet) If your check does not clear, your purchase will
be canceled and you could be liable for any losses or fees a fund or
Fidelity has incurred.
The following information replaces similar information found in the
"Account Features and Policies" section on page P-33:
To reduce expenses, only one copy of most financial reports and
prospectuses will be mailed to your household, even if you have more
than one account in a fund. Call Fidelity at 1-800-544-8544 if you
need additional copies of financial reports or prospectuses.
The following information replaces similar information found in the
"Fund Management" section on page P-35:
(small solid bullet) Fidelity International Investment Advisors
(FIIA), in Pembroke, Bermuda, serves as a sub-adviser for each fund.
As of September 28, 1998, FIIA had approximately $1 billion in
discretionary assets under management. Currently, FIIA is primarily
responsible for choosing investments for Southeast Asia Fund and Hong
Kong and China Fund. Currently, FIIA provides investment research and
advice on issuers based outside the United States and may also provide
investment advisory services for Canada Fund, Emerging Markets Fund,
Europe Fund, Europe Capital Appreciation Fund, France Fund, Germany
Fund, Japan Fund, Japan Small Companies Fund, Latin America Fund,
Nordic Fund, United Kingdom Fund and Pacific Basin Fund.
(small solid bullet) Fidelity International Investment Advisors (U.K.)
Limited (FIIA (U.K.)L), in London, England, serves as a sub-adviser
for each fund. As of September 28, 1998, FIIA(U.K.)L had approximately
$2.3 billion in discretionary assets under management. Currently, FIIA
(U.K.)L is primarily responsible for choosing investments for Emerging
Markets Fund, Europe Fund, France Fund, Germany Fund, Nordic Fund, and
United Kingdom Fund. Currently, FIIA (U.K.)L provides investment
research and advice on issuers based outside the United States and may
also provide investment advisory services for Canada Fund, Europe
Capital Appreciation Fund, Hong Kong and China Fund, Japan Fund, Japan
Small Companies Fund, Latin America Fund, Pacific Basin Fund, and
Southeast Asia Fund.
(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. As of September 28, 1998, FIJ had
approximately $3.96 billion in discretionary assets under management.
Currently FIJ is primarily responsible for choosing investments for
Japan Fund, and Japan Small Companies Fund. Currently, FIJ provides
investment research and advice on issuers based outside the United
States and may also provide investment advisory services for Emerging
Markets Fund, Hong Kong and China Fund, Pacific Basin Fund, and
Southeast Asia Fund.
A fund could be adversely affected if the computer systems used by FMR
and other service providers do not properly process and calculate
date-related information from and after January 1, 2000. FMR has
advised each fund that it is actively working on necessary changes to
its computer systems and expects that its systems, and those of other
major service providers, will be modified prior to January 1, 2000.
However, there can be no assurance that there will be no adverse
impact on a fund.
The following information supplements the information found on the
back cover:
INVESTMENT COMPANY ACT OF 1940, FILE NUMBER 811-4008.
