SUPPLEMENT TO FIDELITY'S TARGETED INTERNATIONAL EQUITY FUNDS
DECEMBER 29, 1999 PROSPECTUS
EFFECTIVE SEPTEMBER 1, 2000, FIDELITY HONG KONG AND CHINA FUND WILL
BE RENAMED FIDELITY CHINA REGION FUND. ALL REFERENCES TO FIDELITY HONG
KONG AND CHINA FUND THROUGHOUT THIS PROSPECTUS SHOULD BE REPLACED WITH
FIDELITY CHINA REGION FUND.
On February 17, 2000, the Board of Trustees of Fidelity Europe Fund
and Fidelity Europe Capital Appreciation Fund authorized elimination
of each fund's 3.00% front-end sales charge. Beginning March 1, 2000,
purchases of shares of the funds will not be subject to a sales
charge.
In addition, on February 17, 2000, the Board of Trustees of Fidelity
Europe Fund and Fidelity Europe Capital Appreciation Fund authorized
the reduction of each fund's redemption fee period from 90 days to 30
days. Redemptions after February 29, 2000, of shares held less than 30
days will be subject to a redemption fee of 1.00% of the amount
redeemed.
On February 17, 2000, the Board of Trustees of Fidelity Pacific Basin
Fund approved increasing the redemption fee from 1.00% to 1.50%.
Redemptions after May 31, 2000 of shares held less than 90 days will
be subject to a redemption fee of 1.50% of the amount redeemed.
The following information replaces similar information found under the
heading "Principal Investment Risks" for Canada Fund in the
"Investment Summary"section on page P-3.
(small solid bullet) GEOGRAPHIC CONCENTRATION IN CANADA. The Canadian
economy can be significantly affected by the U.S. economy and the
price of natural resources. Periodic demands by the Province of Quebec
for sovereignty could significantly affect the Canadian market. A
small number of companies and industries represent a large portion of
the Canadian market, and these companies and industries can be
sensitive to adverse political, economic, or regulatory developments.
Through August 31, 2000, the following information supplements the
information found under the heading "Principal Investment Strategies"
for Hong Kong and China Fund in the "Investment Summary" section on
page P-4.
(small solid bullet) Potentially investing in securities of other
Southeast Asian issuers, such as Taiwanese issuers.
Effective September 1, 2000, the following information replaces the
first and second bullets found under the heading "Principal Investment
Strategies" for Hong Kong and China Fund in the "Investment Summary"
section on page P-4.
(small solid bullet) Normally investing at least 65% of total
assets in securities of Hong Kong, Taiwanese, and Chinese issuers.
Through August 31, 2000, the following information supplements the
information found under the heading "Principal Investment Risks" for
Hong Kong and China Fund in the "Investment Summary" section beginning
on page P-4.
(small solid bullet) GEOGRAPHIC CONCENTRATION IN SOUTHEAST
ASIA. Most Southeast Asian economies are generally considered
emerging markets and are currently in recessions. International trade,
government policy, and political and social stability can
significantly affect economic growth. The markets in Southeast Asia
can be extremely volatile. A small number of companies and industries
represent a large portion of the Southeast Asian market as a whole,
and these companies and industries can be sensitive to adverse
political, economic, or regulatory developments. The Taiwanese economy
can be significantly affected by security threats from the People's
Republic of China. Currency issues and economic competition also can
significantly affect Taiwan's economic growth.
Effective September 1, 2000, the following information replaces the
"Geographic Concentration in Hong Kong and China" bullet found under
the heading "Principal Investment Risks" for Hong Kong and China Fund
in the "Investment Summary" section beginning on page P-4.
(small solid bullet) GEOGRAPHIC CONCENTRATION IN THE CHINA
REGION. The Hong Kong, Taiwanese, and Chinese economies are
generally considered emerging markets and can be significantly
affected by general economic and political conditions in other Asian
countries and changes in Chinese government policy. A small number of
industries represent a large portion of the Hong Kong and Chinese
market as a whole and a small number of companies represent a large
portion of the China Region market as a whole. These industries and
companies can be sensitive to adverse political, economic, or
regulatory developments. In addition, currency issues and economic
competition also can significantly affect economic growth in Hong
Kong, Taiwan and China, and the Taiwanese economy can be significantly
affected by security threats from the People's Republic of China.
The following information replaces similar information found under the
heading "Principal Investment Risks" for Southeast Asia Fund in the
"Investment Summary" section beginning on page P-7.
(small solid bullet) GEOGRAPHIC CONCENTRATION IN SOUTHEAST ASIA. Most
Southeast Asian economies are generally considered emerging markets
and are currently in recessions. International trade, government
policy, and political and social stability can significantly affect
economic growth. The markets in Southeast Asia can be extremely
volatile. A small number of companies and industries represent a large
portion of the Southeast Asian market as a whole, and these companies
and industries can be sensitive to adverse political, economic, or
regulatory developments.
The following information replaces similar information found under the
heading "Average Annual Returns" in the "Performance" section on page
P-12.
The returns in the following table include the effect of each fund's
3.00% maximum applicable front-end sales charge, which has been
eliminated effective March 1, 2000, for Europe Fund and Europe Capital
Appreciation Fund.
The following information replaces similar information found in the
"Fee Table" section on page P-13.
SHAREHOLDER FEES (PAID BY THE INVESTOR DIRECTLY)
Maximum sales charge (load) 3.00%A
on purchases (as a % of
offering price) for Canada
Fund, Emerging Markets Fund,
Hong Kong and China Fund,
Japan Fund, Japan Smaller
Companies Fund, Latin
America Fund, Nordic Fund,
Pacific Basin Fund, and
Southeast Asia Fund only
Sales charge (load) on None
reinvested distributions
Deferred sales charge (load) None
on redemptions
Redemption fee on shares held 1.50%
less than 90 days (as a % of
amount redeemed) for Canada
Fund, Emerging Markets Fund,
Hong Kong and China Fund,
Japan Fund, Japan Smaller
Companies Fund, Latin
America Fund, Nordic Fund,
and Southeast Asia Fund only
Redemption fee on shares held 1.50%
less than 90 days that are
redeemed after May 31, 2000
(as a % of amount redeemed)
for Pacific Basin Fund only
Redemption fee on shares held 1.00%
less than 90 days that are
redeemed on or before May
31, 2000 (as a % of amount
redeemed) for Pacific Basin
Fund only
Redemption fee on shares held 1.00%
less than 30 days (as a % of
amount redeemed) for Europe
Fund and Europe Capital
Appreciation Fund only
Annual account maintenance $ 12.00
fee (for accounts under
$2,500)
A LOWER SALES CHARGES MAY BE AVAILABLE FOR ACCOUNTS OVER $250,000.
The following information replaces similar information found in the
"Fee Table" section on page P-14.
ANNUAL FUND OPERATING EXPENSES (PAID FROM FUND ASSETS)
HONG KONG AND CHINA FUND Management fee 0.73%
Distribution and Service None
(12b-1) fee
Other expenses 0.61%
Total annual fund operating 1.34%
expenses
JAPAN SMALLER COMPANIES FUND Management fee 0.72%
Distribution and Service None
(12b-1) fee
Other expenses 0.35%
Total annual fund operating 1.07%
expenses
NORDIC FUND Management fee 0.73%
Distribution and Service None
(12b-1) fee
Other expenses 0.54%
Total annual fund operating 1.27%
expenses
The following information replaces similar information found in the
"Fee Table" section on page P-15.
EUROPE FUND 1 year $ 98
3 years $ 306
5 years $ 531
10 years $ 1,178
EUROPE CAPITAL APPRECIATION 1 year $ 109
FUND
3 years $ 340
5 years $ 590
10 years $ 1,306
Through August 31, 2000, the following information replaces the
first paragraph found under the heading "Principal Investment
Strategies" for Hong Kong and China Fund in the "Investment Details"
section on page P-18.
FMR normally invests at least 65% of the fund's total assets in
securities of Hong Kong and Chinese issuers. Currently, FMR
anticipates that most of the fund's investments will be in Hong Kong
issuers. FMR may also invest the fund's assets in other Southeast
Asian issuers such as Taiwanese issuers. FMR normally invests the
fund's assets primarily in common stocks.
Effective September 1, 2000, the following information replaces the
first paragraph found under the heading "Principal Investment
Strategies" for Hong Kong and China Fund in the "Investment Details"
section on page P-18.
FMR normally invests at least 65% of the fund's total assets in
securities of Hong Kong, Taiwanese, and Chinese issuers. FMR normally
invests the fund's assets primarily in common stocks.
Through August 31, 2000, the following information replaces the
ninth paragraph found under the heading "Principal Investment Risks"
in the "Investment Details" section beginning on page P-20.
The HONG KONG AND CHINESE economies are dependent on the
economies of other Asian countries. The willingness and ability of the
Chinese government to support the Hong Kong and Chinese economies and
markets is uncertain. A small number of industries, including the
commercial banking industry and the cellular and communications
services industry, represent a large portion of the Hong Kong and
Chinese market as a whole. The Hong Kong and Chinese market also tends
to be relatively concentrated in certain issuers. For example, as of
June 19, 2000, China Telecom (Hong Kong) Ltd., HSBC Holdings, and
Hutchison Whampoa Ltd. accounted for approximately 25%, 22%, and 12%,
respectively, of the Hang Seng Index. The commercial banking industry
can be significantly affected by interest rate and currency
fluctuations, changes in market regulation, and political and economic
developments in the Asian region. The cellular and communications
services industry can be significantly affected by increasing
competition, rapid technological innovation, product obsolescence,
acquisitions and business alliances, and the relative instability of
markets in which a significant percentage of their products are sold.
In addition, the cellular and communications services industry is
highly regulated by the Chinese government. China has yet to develop
comprehensive securities, corporate, or commercial laws, and its
market is relatively new and undeveloped. Changes in government policy
could significantly affect the markets in both countries.
Effective September 1, 2000, the following information replaces the
ninth paragraph found under the heading "Principal Investment Risks"
in the "Investment Details" section beginning on page P-20.
The CHINA REGION economies are dependent on the economies of
other Asian countries and can be significantly affected by currency
fluctuations and increasing competition from Asia's other low-cost
emerging economies. In addition, the Taiwanese economy can be
significantly affected by security threats from the People's Republic
of China. The willingness and ability of the Chinese government to
support the Hong Kong and Chinese economies and markets is uncertain.
China has yet to develop comprehensive securities, corporate, or
commercial laws, and its market is relatively new and undeveloped.
Changes in government policy could significantly affect the markets in
both Hong Kong and China. A small number of industries, including the
commercial banking industry and the cellular and communications
services industry, represent a large portion of the Hong Kong and
Chinese market as a whole. The commercial banking industry can be
significantly affected by interest rate and currency fluctuations,
changes in market regulation, and political and economic developments
in the Asian region. The cellular and communications services industry
can be significantly affected by increasing competition, rapid
technological innovation, product obsolescence, acquisitions and
business alliances, and the relative instability of markets in which a
significant percentage of their products are sold. In addition, the
cellular and communications services industry is highly regulated by
the Chinese government. The China Region market also tends to be
relatively concentrated in certain issuers. For example, as of June 1,
2000, Hutchison Whampoa Ltd., accounted for approximately 12% of the
Morgan Stanley Capital International Golden Dragon Index.
The following information replaces similar information found under the
heading "Principal Investment Risks" in the "Investment Details"
section beginning on page P-20.
The SOUTHEAST ASIA economies are generally in recessions. Many of
their economies are characterized by high inflation, undeveloped
financial services sectors, and heavy reliance on international trade.
Currency devaluations or restrictions, political and social
instability, and general economic conditions have resulted in
significant market downturns and volatility. A small number of
industries represent a large portion of the Southeast Asian market as
a whole. The Southeast Asian market also tends to be relatively
concentrated in certain issuers. For example, as of May 31, 2000,
Samsung Electronics accounted for approximately 11% of the MSCI AC Far
East Free ex Japan Index.
CANADA. The Canadian and U.S. economies are closely integrated. The
United States is Canada's largest trading partner and foreign
investor. Canada is a major producer of forest products, metals,
agricultural products, and energy-related products, such as oil, gas,
and hydroelectricity. The Canadian economy is very dependent on the
demand, supply, and price of natural resources. A small number of
industries, including the telephone equipment industry, represent a
large portion of the Canadian market. The Canadian market also tends
to be relatively concentrated in certain issuers. For example, as of
June 15, 2000, Nortel Networks accounted for approximately 32% of the
TSE 300 Index. The telephone equipment industry can be significantly
affected by increasing competition, rapid technological innovation,
product obsolescence, acquisitions and business alliances, and the
relative instability of markets in which a significant percentage of
their of their products are sold. Periodic demands by the Province of
Quebec for sovereignty could significantly affect the Canadian market.
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. A small number of
industries, including the television and radio communications
equipment industry, represent a large portion of the Nordic market as
a whole. The Nordic market also tends to be relatively concentrated in
certain issuers. For example, as of June 19, 2000, Nokia Corporation
and Ericsson (LM) Telephone Co. accounted for approximately 36% and
21%, respectively, of the FT/S&P-Actuaries World Nordic Index. The
television and radio communications equipment industry can be
significantly affected by increasing competition, rapid technological
innovation, product obsolescence, acquisitions and business alliances,
and the relative instability of markets in which a significant
percentage of their products are sold.
LATIN AMERICA. The economies of countries in Latin America are all
considered emerging market economies. High interest, inflation, and
unemployment rates generally characterize each economy. Currency
devaluations in any country can have a significant affect on the
entire region. Because commodities such as agricultural products,
minerals, and metals represent a significant percentage of exports of
many Latin American countries, the economies of those countries are
particularly sensitive to fluctuations in commodity prices. Recently,
the markets in many Latin American countries have experienced
significant downturns as well as significant volatility. A small
number of industries, including the telephone services industry,
represent a large portion of the Latin American market as a whole. The
Latin American market also tends to be relatively concentrated in
certain issuers. For example, as of June 19, 2000, Telefonos De Mexico
SA accounted for approximately 14% of the MSCI Emerging Markets
Free-Latin America Index. The telephone services industry can be
significantly affected by increasing competition, government
regulation, and financing difficulties.
The following information replaces the first three paragraphs found
under the heading "Buying Shares" in the "Buying and Selling Shares"
section on page P-23.
The price to buy one share of Europe Fund or Europe Capital
Appreciation Fund is the fund's NAV. Each fund's shares are sold
without a sales charge. The price to buy one share of Canada Fund,
Emerging Markets Fund, Hong Kong and China Fund, Japan Fund, Japan
Smaller Companies Fund, Latin America Fund, Nordic Fund, Pacific Basin
Fund, or Southeast Asia Fund is the fund's offering price or the
fund's NAV, depending on whether you pay a sales charge.
If you pay a sales charge, your price will be the fund's offering
price. When you buy shares of a fund at the offering price, Fidelity
deducts the appropriate sales charge and invests the rest in the fund.
If you qualify for a sales charge waiver, your price will be the
fund's NAV.
The offering price of Canada Fund, Emerging Markets Fund, Hong Kong
and China Fund, Japan Fund, Japan Smaller Companies Fund, Latin
America Fund, Nordic Fund, Pacific Basin Fund, or Southeast Asia Fund
is the fund's NAV divided by the difference between one and the
applicable sales charge percentage. The maximum sales charge is 3.00%
of the offering price.
The following information replaces the second paragraph found under
the heading "Selling Shares" in the "Buying and Selling Shares"
section on page P-25.
Canada Fund, Emerging Markets Fund, Hong Kong and China Fund, Japan
Fund, Japan Smaller Companies Fund, Latin America Fund, Nordic Fund,
and Southeast Asia Fund will deduct a short-term trading fee of 1.50%
from the redemption amount if you sell your shares after holding them
less than 90 days. Europe Fund and Europe Capital Appreciation Fund
will deduct a short-term trading fee of 1.00% from the redemption
amount if you sell your shares after holding them less than 30 days.
Pacific Basin Fund will deduct a short-term trading fee of 1.00% from
the redemption amount if you sell your shares on or before May 31,
2000 after holding them less than 90 days, and will deduct a
short-term trading fee of 1.50% from the redemption amount if you sell
your shares after May 31, 2000 after holding them less than 90 days.
This fee is paid to the fund rather than Fidelity, and is designed to
offset the brokerage commissions, market impact, and other costs
associated with fluctuations in fund asset levels and cash flow caused
by short-term shareholder trading.
The following information replaces similar information under the
heading "Features" found in the "Account Features and Policies"
section on page P-27.
PERSONAL WITHDRAWAL SERVICE
TO SET UP PERIODIC
REDEMPTIONS FROM YOUR
ACCOUNT TO YOU OR TO YOUR
BANK ACCOUNT.
FREQUENCY PROCEDURES
Monthly (small solid bullet) To set
up, call 1-800-544-6666.
(small solid bullet) To make
changes, call Fidelity at
1-800-544-6666 at least
three business days prior to
your next scheduled
withdrawal date.
(small solid bullet) Because
of Canada Fund's, Emerging
Markets Fund's, Hong Kong
and China Fund's, Japan
Fund's, Japan Smaller
Companies Fund's, Latin
America Fund's, Nordic
Fund's, Pacific Basin
Fund's, and Southeast Asia
Fund's front-end sales
charge, you may not want to
set up a systematic
withdrawal program when you
are buying Canada Fund's,
Emerging Markets Fund's,
Hong Kong and China Fund's,
Japan Fund's, Japan Smaller
Companies Fund's, Latin
America Fund's, Nordic
Fund's, Pacific Basin
Fund's, or Southeast Asia
Fund's shares on a regular
basis.
The following information replaces similar information found in the
"Fund Management" section on page P-30.
Ian Hart is manager of Europe Capital Appreciation Fund, which he has
managed since April 2000. Mr. Hart joined Fidelity in 1994 as an
equity research analyst covering the European retail and diversified
industrial sectors.
Patricia Satterthwaite is vice president and lead manager of Latin
America Fund, and vice president and manager of Emerging Markets Fund,
which she has managed since April 1993 and April 2000, respectively.
She also manages other Fidelity funds. Since joining Fidelity in 1986,
Ms. Satterthwaite has worked as an analyst and manager.
Yoko Ishibashi is manager of Japan Fund, which she has managed since
June 2000. Since joining Fidelity in 1994, Ms. Ishibashi has worked as
an analyst and manager.
The following information replaces similar information found in the
"Fund Management" section on page P-30.
(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, 1999, FIIA(U.K.)L had approximately
$2.6 billion in discretionary assets under management. Currently,
FIIA(U.K.)L is primarily responsible for choosing investments for
Europe Fund and Nordic 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, Emerging Markets Fund, Europe Capital Appreciation Fund, Hong
Kong and China Fund, Japan Fund, Japan Smaller Companies Fund, Latin
America Fund, Pacific Basin Fund, and Southeast Asia Fund.
FMR pays FMR U.K., FMR Far East and FIIA for providing sub-advisory
services, and FIIA in turn pays FIIA(U.K.)L. FIIA or FMR Far East in
turn pays FIJ for providing sub-advisory services.
The following information replaces similar information found in the
"Fund Distribution" section on page P-32.
FDC distributes each fund's shares.
You may pay a sales charge when you buy your shares of Canada Fund,
Emerging Markets Fund, Hong Kong and China Fund, Japan Fund, Japan
Smaller Companies Fund, Latin America Fund, Nordic Fund, Pacific Basin
Fund, and Southeast Asia Fund.
FDC collects the sales charge.
Canada Fund's, Emerging Markets Fund's, Hong Kong and China Fund's,
Japan Fund's, Japan Smaller Companies Fund's, Latin America Fund's,
Nordic Fund's, Pacific Basin Fund's, and Southeast Asia Fund's sales
charge may be reduced if you buy directly through Fidelity or through
prototype or prototype-like retirement plans sponsored by FMR or FMR
Corp. The amount you invest, plus the value of your account, must fall
within the ranges shown below. Purchases made with assistance or
intervention from a financial intermediary are not eligible for a
sales charge reduction.
Sales Charge
Ranges As a % of offering price As an approximate % of net
amount invested
$0 - 249,999 3.00% 3.09%
$250,000 - 499,999 2.00% 2.04%
$500,000 - 999,999 1.00% 1.01%
$1,000,000 or more none none
FDC may pay a portion of sales charge proceeds to securities dealers
who have sold Canada Fund's, Emerging Markets Fund's, Hong Kong and
China Fund's, Japan Fund's, Japan Smaller Companies Fund's, Latin
America Fund's, Nordic Fund's, Pacific Basin Fund's, or Southeast Asia
Fund's shares, or to others, including banks and other financial
institutions (qualified recipients), under special arrangements in
connection with FDC's sales activities. The sales charge paid to
qualified recipients is 1.50% of a fund's offering price.
The following information replaces similar information found in the
"Fund Distribution" section on page P-32.
Canada Fund's, Emerging Markets Fund's, Hong Kong and China Fund's,
Japan Fund's, Japan Smaller Companies Fund's, Latin America Fund's,
Nordic Fund's, Pacific Basin Fund's, and Southeast Asia Fund's sales
charge will not apply:
SUPPLEMENT TO
FIDELITY'S TARGETED INTERNATIONAL EQUITY FUNDS
FIDELITY CANADA FUND, FIDELITY EMERGING MARKETS FUND, FIDELITY EUROPE
FUND, FIDELITY EUROPE CAPITAL APPRECIATION FUND, FIDELITY HONG KONG
AND CHINA FUND, FIDELITY JAPAN FUND, FIDELITY JAPAN SMALLER COMPANIES
FUND (FORMERLY FIDELITY JAPAN SMALL COMPANIES FUND), FIDELITY LATIN
AMERICA FUND, FIDELITY NORDIC FUND, FIDELITY PACIFIC BASIN FUND, AND
FIDELITY SOUTHEAST ASIA FUND
DECEMBER 29, 1999
STATEMENT OF ADDITIONAL INFORMATION
EFFECTIVE SEPTEMBER 1, 2000, FIDELITY HONG KONG AND CHINA FUND WILL
BE RENAMED FIDELITY CHINA REGION FUND. ALL REFERENCES TO FIDELITY HONG
KONG AND CHINA FUND THROUGHOUT THIS SAI SHOULD BE REPLACED WITH
FIDELITY CHINA REGION FUND.
ON FEBRUARY 17, 2000, THE BOARD OF TRUSTEES OF FIDELITY EUROPE FUND
AND FIDELITY EUROPE CAPITAL APPRECIATION FUND AUTHORIZED ELIMINATION
OF EACH FUND'S 3.00% FRONT-END SALES CHARGE. BEGINNING MARCH 1, 2000,
PURCHASES OF SHARES OF THE FUNDS WILL NOT BE SUBJECT TO A SALES
CHARGE.
IN ADDITION, ON FEBRUARY 17, 2000, THE BOARD OF TRUSTEES OF FIDELITY
EUROPE FUND AND FIDELITY EUROPE CAPITAL APPRECIATION FUND AUTHORIZED
THE REDUCTION OF EACH FUND'S REDEMPTION FEE PERIOD FROM 90 DAYS TO 30
DAYS. REDEMPTIONS AFTER FEBRUARY 29, 2000 OF SHARES HELD LESS THAN 30
DAYS WILL BE SUBJECT TO A REDEMPTION FEE OF 1.00% OF THE AMOUNT
REDEEMED.
ON FEBRUARY 17, 2000, THE BOARD OF TRUSTEES OF FIDELITY PACIFIC BASIN
FUND APPROVED INCREASING THE REDEMPTION FEE FROM 1.00% TO 1.50%.
REDEMPTIONS AFTER MAY 31, 2000 OF SHARES HELD LESS THAN 90 DAYS WILL
BE SUBJECT TO A REDEMPTION FEE OF 1.50% OF THE AMOUNT REDEEMED.
EFFECTIVE SEPTEMBER 1, 2000, THE FOLLOWING INFORMATION REPLACES
SIMILAR INFORMATION FOUND UNDER THE HEADING "INVESTMENT LIMITATIONS OF
HONG KONG AND CHINA FUND" IN THE "INVESTMENT POLICIES AND LIMITATIONS"
SECTION BEGINNING ON PAGE 6.
For purposes of investing at least 65% of the fund's total assets
in securities of Hong Kong, Taiwanese, and Chinese issuers, FMR
interprets "total assets" to exclude collateral received for
securities lending transactions.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"SPECIAL CONSIDERATIONS REGARDING CANADA" SECTION ON PAGE 22.
ECONOMIC. The telephone equipment industry comprised a major segment
of the Canadian market, as represented by the Toronto Stock Exchange
300 Index as of June 15, 2000. The telephone equipment industry can be
significantly affected by increasing competition, rapid technological
innovation, product obsolescence, acquisitions and business alliances,
and the relative instability of markets in which a significant
percentage of their products are sold. Canada is a major producer of
commodities such as forest products, metals, agricultural products,
and energy related products like oil, gas, and hydroelectricity.
Accordingly, changes in the supply and demand of industrial and basic
materials, both domestically and internationally, can have a
significant effect on Canadian market performance.
In addition, Canada relies considerably on the health of the United
States' economy, its biggest trading partner and largest foreign
investor. The expanding economic and financial integration of the
United States and Canada will likely make the Canadian economy and
securities market increasingly sensitive to U.S. economic and market
events.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"SPECIAL CONSIDERATIONS REGARDING EUROPE" SECTION ON PAGE 23.
NORDIC COUNTRIES. Faced with stronger global competition, the Nordic
countries - Norway, Finland, Denmark, and Sweden - have had to scale
down their historically generous welfare programs, resulting in drops
in domestic demand and increased unemployment. Major industries in the
region, such as forestry, agriculture, and oil, are heavily
resource-dependent and face pressure as a result of high labor costs.
Pension reform, union regulation, and further cuts in liberal social
programs will likely need to be addressed as the Nordic countries face
increased international competition.
The television and radio communications equipment industry comprised a
major segment of the Nordic market as a whole, as represented by the
Financial Times/S&P-Actuaries World Nordic Index as of June 19, 2000.
The television and radio communications equipment industry has been
dominated by companies whose principal business is the development and
manufacture of mobile phones, networks, and systems for cellular and
fixed networks. These companies have attainted a major share of the
world's wireless phone market in a highly competitive global
marketplace. The pace of technological innovation in the television
and radio communications equipment industry has been rapid, and
communications companies continually face the risk that their products
will be made obsolete. To maintain their competitive edge, television
and radio communications equipment companies have been acquiring
companies that offer new technologies, such as Internet equipment
developers, or have allied with other top information technology
businesses. These acquisitions and alliances can substantially alter
the relative competitive position of a television and radio
communications equipment company. Multiple digital standards create
confusion and technical difficulties in penetrating markets, which can
force carriers to price their services aggressively and cut profit
margins in an attempt to accelerate demand. Oversupply of handsets has
been a frequent problem in the cellular industry as demand fails to
meet projections or new product innovations make older models less
attractive to buyers. Excess capacity could drive down pricing and
slow revenue growth. Because emerging markets have accounted for 25%
to 30% of the market for cellular handsets, with China accounting for
as much as 15% of the total, the television and radio communications
equipment industry could be vulnerable to any economic or currency
weakness or political instability in these countries.
THROUGH AUGUST 31, 2000, THE FOLLOWING INFORMATION REPLACES THE TWO
PARAGRAPHS FOLLOWING THE HEADING "CHINA AND HONG KONG" FOUND IN THE
"SPECIAL CONSIDERATIONS REGARDING ASIA PACIFIC REGION (EX JAPAN)"
SECTION ON PAGE 25.
CHINA AND HONG KONG. As with all transition economies,
China's ability to develop and sustain a credible legal, regulatory,
monetary, and socioeconomic system could influence the course of
outside investment. Hong Kong is closely tied to China, economically
and through China's 1997 acquisition of the country as a Special
Autonomous Region (SAR). Hong Kong's success depends, in large part,
on its ability to retain the legal, financial, and monetary systems
that allow economic freedom and market expansion.
The commercial banking industry and the cellular and communications
services industry each comprised a major segment of the Hong Kong and
Chinese market as a whole, as represented by the Hang Seng Index as of
June 19, 2000. In recent years, Hong Kong has been subjected to
speculative attacks on its currency, which have sent interest rates
soaring and its stock markets into sharp declines. Companies in the
commercial banking industry are particularly sensitive to interest
rate fluctuations, and, if the government continues its U.S. dollar
peg policy, it risks further attacks on its currency and possible
upward pressure on interest rates. While the Hong Kong Stock Exchange
has implemented an electronic order-matching system that has virtually
eliminated front-running by brokers, there are still no specific
regulations against insider trading. Small, often family-run,
brokerages sometimes wield undue influence or veto power over the
largest overseas investment banks operating in the market, and the
Exchange has been criticized for giving low priority to investor
protection. The commercial banking industry has not been immune to
economic and currency turmoil that has periodically engulfed its Asian
neighbors, and any future disruptions in the Asian region could have a
derivative effect on this currency and interest rate sensitive
industry. The cellular and communications services industry can be
significantly affected by increasing competition, rapid technological
innovation, product obsolescence, acquisitions and business alliances,
and the relative instability of markets in which a significant
percentage of their products are sold. In addition, the cellular and
communications services industry is among those that are the most
highly regulated by the Chinese government. Cellular and
communications services companies doing business in this large and
expanding market must ensure that they are well protected by state
sponsorship and have the necessary political connections vital to the
granting of the relevant licenses.
EFFECTIVE SEPTEMBER 1, 2000, THE FOLLOWING INFORMATION REPLACES THE
TWO PARAGRAPHS FOLLOWING THE HEADING "CHINA AND HONG KONG" FOUND IN
THE "SPECIAL CONSIDERATIONS REGARDING ASIA PACIFIC REGION (EX JAPAN)"
SECTION ON PAGE 25.
CHINA REGION. As with all transition economies, China's
ability to develop and sustain a credible legal, regulatory, monetary,
and socioeconomic system could influence the course of outside
investment. Hong Kong is closely tied to China, economically and
through China's 1997 acquisition of the country as a Special
Autonomous Region (SAR). Hong Kong's success depends, in large part,
on its ability to retain the legal, financial, and monetary systems
that allow economic freedom and market expansion.
The commercial banking industry and the cellular and communications
services industry each comprised a major segment of the Hong Kong and
Chinese market as a whole, as represented by the Hang Seng Index as of
June 19, 2000. In recent years, Hong Kong has been subjected to
speculative attacks on its currency, which have sent interest rates
soaring and its stock markets into sharp declines. Companies in the
commercial banking industry are particularly sensitive to interest
rate fluctuations, and, if the government continues its U.S. dollar
peg policy, it risks further attacks on its currency and possible
upward pressure on interest rates. While the Hong Kong Stock Exchange
has implemented an electronic order-matching system that has virtually
eliminated front-running by brokers, there are still no specific
regulations against insider trading. Small, often family-run,
brokerages sometimes wield undue influence or veto power over the
largest overseas investment banks operating in the market, and the
Exchange has been criticized for giving low priority to investor
protection. The commercial banking industry has not been immune to
economic and currency turmoil that has periodically engulfed its Asian
neighbors, and any future disruptions in the Asian region could have a
derivative effect on this currency and interest rate sensitive
industry. The cellular and communications services industry can be
significantly affected by increasing competition, rapid technological
innovation, product obsolescence, acquisitions and business alliances,
and the relative instability of markets in which a significant
percentage of their products are sold. In addition, the cellular and
communications services industry is among those that are the most
highly regulated by the Chinese government. Cellular and
communications services companies doing business in this large and
expanding market must ensure that they are well protected by state
sponsorship and have the necessary political connections vital to the
granting of the relevant licenses.
For decades, a state of hostility has existed between Taiwan and
the Peoples Republic of China. Beijing has long deemed Taiwan a part
of the "one China" and has made a nationalist cause of recovering it.
Frequent military provocations and threats of full-scale military
action by the Chinese have become more frequent in response to
Taiwan's election of a new president who is considered to favor
declaring Taiwan's independence. This situation poses a threat to
Taiwan's economic well being and could adversely affect the nation's
stock market.
Taiwan is one of Asia's great exporting nations, but it thrives
more on imitation than on creativity. Taiwanese companies continue to
compete mostly on price, producing generic products or branded
merchandise on behalf of multinational companies. Accordingly, these
businesses can be particularly vulnerable to currency volatility and
from increasing competition from neighboring lower-cost countries.
Although the listed companies on the Taiwan Stock Exchange cover a
wide range of industries, electronics companies and the banking and
insurance sector dominate the market. Semiconductor chips and other
computer components are a mainstay of Taiwan's electronics sector. The
businesses that produce these products are at risk of losing orders
from computer companies in the United States as a result of rising
concern over possible production disruptions stemming from future
military confrontations with China. The semiconductor and electronics
business is also highly price-competitive and can be negatively
affected by currency fluctuations. In addition, producers face the
risk of growing competition from low-cost, emerging economies.
Taiwan's banking and insurance sector has recently been adversely
affected by economic and currency turmoil in Asia. Rising loan
defaults and corporate bankruptcies have prompted the Taiwanese
government to initiate stabilization measures to prevent further
collapse; but the success of these measures is far from assured.
THROUGH AUGUST 31, 2000, THE FOLLOWING INFORMATION SUPPLEMENTS THE
INFORMATION FOUND IN THE "SPECIAL CONSIDERATIONS REGARDING ASIA
PACIFIC REGION (EX JAPAN)" SECTION ON PAGE 25.
TAIWAN. For decades, a state of hostility has existed
between Taiwan and the Peoples Republic of China. Beijing has long
deemed Taiwan a part of the "one China" and has made a nationalist
cause of recovering it. Frequent military provocations and threats of
full-scale military action by the Chinese have become more frequent in
response to Taiwan's election of a new president who is considered to
favor declaring Taiwan's independence. This situation poses a threat
to Taiwan's economic well being and could adversely affect the
nation's stock market.
Taiwan is one of Asia's great exporting nations, but it thrives
more on imitation than on creativity. Taiwanese companies continue to
compete mostly on price, producing generic products or branded
merchandise on behalf of multinational companies. Accordingly, these
businesses can be particularly vulnerable to currency volatility and
from increasing competition from neighboring lower-cost countries.
Although the listed companies on the Taiwan Stock Exchange cover a
wide range of industries, electronics companies and the banking and
insurance sector dominate the market. Semiconductor chips and other
computer components are a mainstay of Taiwan's electronics sector. The
businesses that produce these products are at risk of losing orders
from computer companies in the United States as a result of rising
concern over possible production disruptions stemming from future
military confrontations with China. The semiconductor and electronics
business is also highly price-competitive and can be negatively
affected by currency fluctuations. In addition, producers face the
risk of growing competition from low-cost, emerging economies.
Taiwan's banking and insurance sector has recently been adversely
affected by economic and currency turmoil in Asia. Rising loan
defaults and corporate bankruptcies have prompted the Taiwanese
government to initiate stabilization measures to prevent further
collapse; but the success of these measures is far from assured.
THE FOLLOWING INFORMATION SUPPLEMENTS THE INFORMATION FOUND IN THE
"SPECIAL CONSIDERATIONS REGARDING ASIA PACIFIC REGION (EX JAPAN)"
SECTION ON PAGE 25.
SOUTHEAST ASIA. The semiconductor industry comprised a
significant segment of the Southeast Asian market as a whole, as
represented by the MSCI AC Far East ex Japan Index as of May 31, 2000.
The semiconductor industry has historically been subject to wide
fluctuations in demand and manufacturing capacity and, as a result,
can be highly price-sensitive. The semiconductor industry can be
significantly affected by currency fluctuations, rapid technological
change, and increasing competition from other low-cost emerging
economies.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"SPECIAL CONSIDERATIONS REGARDING LATIN AMERICA" SECTION ON PAGE 25.
The telephone services industry comprised a major segment of the Latin
American market as a whole, as represented by the MSCI Emerging
Markets Free - Latin America Index as of June 19, 2000. The pace of
the privatization of most of Latin America's telephone services
companies has been accelerating and is generally expected to
ameliorate the industry's worsening infrastructure problems and
substantially expand and improve services to the consumer. Following
the privatization and breakup of many of Latin America's
telecommunications monopolies, telephone services companies are now
faced with an increasingly competitive operating environment that
could substantially affect their profit margins adversely. In
addition, because these companies are regulated providers of a highly
visible basic service, in a sovereign stress scenario a company may
not be permitted to pass on increased operating expenses or
devaluation-related price increases directly and immediately to
consumers. Attempts by management to undertake restructuring
initiatives, such as cutting employment overhead, could also meet with
strong government and union opposition. Latin American countries have
periodically experienced sharp economic slowdowns, high interest
rates, and spiraling inflation. In this environment, the earnings and
profits of telephone services companies could be particularly
vulnerable. Access to capital could be substantially restricted by the
market's reaction to regional or global economic crisis. Because
telephone services companies issue among Latin America's largest and
most liquid stocks, they may be among the first companies whose shares
will be sold by foreign investors seeking to repatriate their overseas
investments in times of regional or global crisis. Accordingly, shares
of telephone services companies may be subject to a high degree of
price volatility in these situations.
THE FOLLOWING INFORMATION REPLACES THE FIRST TWO PARAGRAPHS FOLLOWING
THE HEADING "HISTORICAL FUND RESULTS" FOUND IN THE "PERFORMANCE"
SECTION ON PAGE 34.
Canada Fund, Emerging Markets Fund, Hong Kong and China Fund, Japan
Fund, Japan Smaller Companies Fund, Latin America Fund, Nordic Fund,
Pacific Basin Fund, and Southeast Asia Fund have a maximum front-end
sales charge of 3.00% which is included in the average annual and
cumulative returns.
Europe Fund and Europe Capital Appreciation Fund had a maximum
front-end sales charge of 3.00% (eliminated effective March 1, 2000)
which is included in the average annual and cumulative returns.
For Europe Fund and Europe Capital Appreciation Fund, returns do not
include the effect of the funds' 1.00% short-term trading fee,
applicable to shares held less than 90 days that were redeemed on or
before February 29, 2000.
For Pacific Basin Fund, returns do not include the effect of the
fund's 1.00% short-term trading fee, applicable to shares held less
than 90 days that are redeemed on or before May 31, 2000.
For Canada Fund, Emerging Markets Fund, Hong Kong and China Fund,
Japan Fund, Japan Smaller Companies Fund, Latin America Fund, Nordic
Fund, Pacific Basin Fund, and Southeast Asia Fund, returns do not
include the effect of the funds' 1.50% short-term trading fee,
applicable to shares held less than 90 days.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"PERFORMANCE" SECTION ON PAGE 37.
During the 10-year period ended October 31, 1999, a hypothetical
$10,000 investment in Europe Fund would have grown to $32,385,
including the effect of the fund's maximum sales charge, which was
eliminated effective March 1, 2000.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"PERFORMANCE" SECTION ON PAGE 37.
Explanatory Notes: With an initial investment of $10,000 in Europe
Fund on November 1, 1989, assuming the maximum sales charge had been
in effect, the net amount invested in fund shares was $9,700. The cost
of the initial investment ($10,000) together with the aggregate cost
of reinvested dividends and capital gain distributions for the period
covered (their cash value at the time they were reinvested) amounted
to $17,759. If distributions had not been reinvested, the amount of
distributions earned from the fund over time would have been smaller,
and cash payments for the period would have amounted to $1,728 for
dividends and $4,676 for capital gain distributions. The figures in
the table do not include the effect of the fund's 1.00% short-term
trading fee, applicable to shares held less than 90 days that were
redeemed on or before February 29, 2000.
During the period from December 21, 1993 (commencement of operations)
to October 31, 1999, a hypothetical $10,000 investment in Europe
Capital Appreciation Fund would have grown to $23,822, including the
effect of the fund's maximum sales charge, which was eliminated
effective March 1, 2000.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"PERFORMANCE" SECTION BEGINNING ON PAGE 37.
Explanatory Notes: With an initial investment of $10,000 in Europe
Capital Appreciation Fund on December 21, 1993, assuming the maximum
sales charge had been in effect, the net amount invested in fund
shares was $9,700. The cost of the initial investment ($10,000)
together with the aggregate cost of reinvested dividends and capital
gain distributions for the period covered (their cash value at the
time they were reinvested) amounted to $14,212. If distributions had
not been reinvested, the amount of distributions earned from the fund
over time would have been smaller, and cash payments for the period
would have amounted to $601 for dividends and $3,279 for capital gain
distributions. The figures in the table do not include the effect of
the fund's 1.00% short-term trading fee, applicable to shares held
less than 90 days that were redeemed on or before February 29, 2000.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"PERFORMANCE" SECTION ON PAGE 40.
Explanatory Notes: With an initial investment of $10,000 in Pacific
Basin Fund on November 1, 1989, assuming the maximum sales charge had
been in effect, the net amount invested in fund shares was $9,700. The
cost of the initial investment ($10,000) together with the aggregate
cost of reinvested dividends and capital gain distributions for the
period covered (their cash value at the time they were reinvested)
amounted to $12,461. If distributions had not been reinvested, the
amount of distributions earned from the fund over time would have been
smaller, and cash payments for the period would have amounted to $479
for dividends and $1,795 for capital gain distributions. The figures
in the table do not include the effect of the fund's 1.00% short-term
trading fee, applicable to shares held less than 90 days that are
redeemed on or before May 31, 2000.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"ADDITIONAL PURCHASE, EXCHANGE AND REDEMPTION INFORMATION" SECTION ON
PAGE 45.
Pursuant to Rule 22d-1 under the 1940 Act, FDC exercises its right to
waive Canada Fund's, Emerging Markets Fund's, Hong Kong and China
Fund's, Japan Fund's, Japan Smaller Companies Fund's, Latin America
Fund's, Nordic Fund's, Pacific Basin Fund's, and Southeast Asia Fund's
front-end sales charge on shares acquired through reinvestment of
dividends and capital gain distributions or in connection with a
fund's merger with or acquisition of any investment company or trust.
In addition, FDC has chosen to waive Canada Fund's, Emerging Markets
Fund's, Hong Kong and China Fund's, Japan Fund's, Japan Smaller
Companies Fund's, Latin America Fund's, Nordic Fund's, Pacific Basin
Fund's, and Southeast Asia Fund's front-end sales charge in certain
instances due to sales efficiencies and competitive considerations.
The sales charge will not apply:
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"ADDITIONAL PURCHASE, EXCHANGE AND REDEMPTION INFORMATION" SECTION ON
PAGE 46.
Canada Fund's, Emerging Markets Fund's, Hong Kong and China Fund's,
Japan Fund's, Japan Smaller Companies Fund's, Latin America Fund's,
Nordic Fund's, Pacific Basin Fund's, and Southeast Asia Fund's sales
charge may be reduced to reflect sales charges previously paid, or
that would have been paid absent a reduction for some purchases made
directly with Fidelity as noted in the prospectus, in connection with
investments in other Fidelity funds. This includes reductions for
investments in prototype-like retirement plans sponsored by FMR or FMR
Corp., which are listed above.
On October 12, 1990, each of Canada Fund, Europe Fund, and Pacific
Basin Fund changed its sales charge policy from a 2% sales charge upon
purchase and a 1% deferred sales charge upon redemption, to a 3% sales
charge upon purchase. If you purchased shares prior to that date, when
you redeem those shares a deferred sales charge of 1% of the
redemption amount will be deducted. On March 1, 2000, the 3% sales
charge was eliminated for Europe Fund.
THE FOLLOWING INFORMATION HAS BEEN REMOVED FROM THE "TRUSTEES AND
OFFICERS" SECTION BEGINNING ON PAGE 47.
J. GARY BURKHEAD (58), Member of the Advisory Board (1997), is Vice
Chairman and a Member of the Board of Directors of FMR Corp. (1997)
and President of Fidelity Personal Investments and Brokerage Group
(1997). Previously, Mr. Burkhead served as President of Fidelity
Management & Research Company.
E. BRADLEY JONES (71), Trustee. Prior to his retirement in 1984, Mr.
Jones was Chairman and Chief Executive Officer of LTV Steel Company.
He is a Director of TRW Inc. (automotive, space, defense, and
information technology), CSX Corporation (freight transportation),
Birmingham Steel Corporation (producer of steel and steel products),
and RPM, Inc. (manufacturer of chemical products), and he previously
served as a Director of NACCO Industries, Inc. (mining and
manufacturing, 1985-1995), Hyster-Yale Materials Handling, Inc.
(1985-1995), and Cleveland-Cliffs Inc (mining, 1985-1997), and as a
Trustee of First Union Real Estate Investments (1986-1997). In
addition, he serves as a Trustee of the Cleveland Clinic Foundation,
where he has also been a member of the Executive Committee as well as
Chairman of the Board and President, a Trustee of University School
(Cleveland), and a Trustee of Cleveland Clinic Florida.
RICHARD A. SILVER (52), 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).
MATTHEW N. KARSTETTER (38), Deputy Treasurer (1998), is Deputy
Treasurer of the Fidelity funds and is an employee of FMR (1998).
Before joining FMR, Mr. Karstetter served as Vice President of
Investment Accounting and Treasurer of IDS Mutual Funds at American
Express Financial Advisors (1996-1998). Prior to 1996, Mr. Karstetter
was Vice President, Mutual Fund Services at State Street Bank & Trust
(1991-1996).
THE FOLLOWING INFORMATION REPLACES THE SIMILAR INFORMATION FOUND IN
THE "TRUSTEES AND OFFICERS" SECTION BEGINNING ON PAGE 47.
NED C. LAUTENBACH (55), Trustee (2000), has been a partner of Clayton,
Dubilier & Rice, Inc. (private equity investment firm) since September
1998. Mr. Lautenbach was Senior Vice President of IBM Corporation from
1992 until his retirement in July 1998. From 1993 to 1995 he was
Chairman of IBM World Trade Corporation. He also was a member of IBM's
Corporate Executive Committee from 1994 to July 1998. He is a Director
of PPG Industries Inc. (glass, coating and chemical manufacturer),
Dynatech Corporation (global communications equipment), Eaton
Corporation (global manufacturer of highly engineered products) and
ChoicePoint Inc. (data identification, retrieval, storage, and
analysis).
THE FOLLOWING INFORMATION SUPPLEMENTS THE INFORMATION FOUND IN THE
"TRUSTEES AND OFFICERS" SECTION BEGINNING ON PAGE 47.
J. MICHAEL COOK (57), Member of the Advisory Board (2000). Prior to
Mr. Cook's retirement in May 1999, he served as Chairman and Chief
Executive Officer of Deloitte & Touche LLP, Chairman of the Deloitte &
Touche Foundation, and a member of the Board of Deloitte Touche
Tohmatsu. He currently serves as an Executive in Residence of the
Columbia Business School and as a Director of Dow Chemical Company
(2000), HCA - The Healthcare Company (1999), and Children First
(1999). He is a member of the Executive Committee of the Securities
Regulation Institute, a member of the Advisory Board of Boardroom
Consultants, past chairman and a member of the Board of Catalyst (a
leading organization for the advancement of women in business), and a
Director of the STAR Foundation (Society to Advance the Retarded and
Handicapped). He also serves as a member of the Board and Executive
Committee and as Co-Chairman of the Audit and Finance Committee of the
Center for Strategic & International Studies, a member of the Board of
Overseers of the Columbia Business School, and a Member of the
Advisory Board of the Graduate School of Business of the University of
Florida.
MARIE L. KNOWLES (53), Member of the Advisory Board (2000). Beginning
in 1972, Ms. Knowles served in various positions with Atlantic
Richfield Company (ARCO) (diversified energy) including Executive Vice
President and Chief Financial Officer (1996-2000); Director
(1996-1998); and Senior Vice President (1993-1996). In addition, Ms.
Knowles served as President of ARCO Transportation Company
(1993-1996). She currently serves as a Director of Phelps Dodge
Corporation (copper mining and manufacturing), URS Corporation
(multidisciplinary engineering, 1999), and America West Holdings
Corporation (aviation and travel services, 1999). Ms. Knowles also
serves as a member of the National Board of the Smithsonian
Institution and she is a trustee of the Brookings Institution.
MARIA F. DWYER (41), Deputy Treasurer (2000), is Deputy Treasurer of
the Fidelity funds and is a Vice President (1999) and an employee
(1996) of FMR. Prior to joining Fidelity, Ms. Dwyer served as Director
of Compliance for MFS Investment Management.
ROBERT A. DWIGHT (41),Treasurer (2000), is Treasurer of the Fidelity
funds and is an employee of FMR. Prior to becoming Treasurer of the
Fidelity funds, he served as President of Fidelity Accounting and
Custody Services (FACS). Before joining Fidelity, Mr. Dwight was
Senior Vice President of fund accounting operations for The Boston
Company.
THE FOLLOWING INFORMATION REPLACES THE COMPENSATION TABLE FOUND IN THE
"TRUSTEES AND OFFICERS" SECTION BEGINNING ON PAGE 47.
The following table sets forth information describing the compensation
of each Trustee and Member of the Advisory Board of each fund for his
or her services for the fiscal year ended October 31, 1999, or
calendar year ended December 31, 1998, as applicable.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
COMPENSATION TABLE
AGGREGATE COMPENSATION
FROM A Edward C. Johnson 3d** Abigail P. Johnson** Ralph F. Cox Phyllis Burke Davis Robert M. Gates
FUND
Canada FundB $ 0 $ 0 $ 14 $ 13 $ 14
Emerging Markets FundB $ 0 $ 0 $ 96 $ 93 $ 96
Europe FundB $ 0 $ 0 $ 445 $ 427 $ 441
Europe Capital Appreciation $ 0 $ 0 $ 176 $ 169 $ 174
FundB
Hong Kong and China FundB $ 0 $ 0 $ 43 $ 41 $ 43
Japan FundB $ 0 $ 0 $ 116 $ 112 $ 116
Japan Smaller Companies FundB $ 0 $ 0 $ 147 $ 142 $ 146
Latin America FundB $ 0 $ 0 $ 98 $ 94 $ 97
Nordic FundB $ 0 $ 0 $ 31 $ 30 $ 31
Pacific Basin FundB $ 0 $ 0 $ 91 $ 88 $ 91
Southeast Asia FundB $ 0 $ 0 $ 83 $ 80 $ 83
TOTAL COMPENSATION FROM THE $ 0 $ 0 $ 223,500 $ 220,500 $ 223,500
FUND COMPLEX*,A
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
COMPENSATION TABLE
AGGREGATE COMPENSATION
FROM A E. Bradley Jones *** Donald J. Kirk Ned C. Lautenbach **** Peter S. Lynch** William O. McCoy
FUND
Canada FundB $ 13 $ 13 $ 1 $ 0 $ 14
Emerging Markets FundB $ 96 $ 95 $ 10 $ 0 $ 96
Europe FundB $ 441 $ 438 $ 31 $ 0 $ 441
Europe Capital Appreciation $ 174 $ 173 $ 11 $ 0 $ 174
FundB
Hong Kong and China FundB $ 43 $ 42 $ 4 $ 0 $ 43
Japan FundB $ 116 $ 115 $ 18 $ 0 $ 116
Japan Smaller Companies FundB $ 147 $ 146 $ 40 $ 0 $ 146
Latin America FundB $ 97 $ 97 $ 7 $ 0 $ 97
Nordic FundB $ 31 $ 31 $ 2 $ 0 $ 31
Pacific Basin FundB $ 90 $ 90 $ 14 $ 0 $ 91
Southeast Asia FundB $ 82 $ 82 $ 9 $ 0 $ 83
TOTAL COMPENSATION FROM THE $ 222,000 $ 226,500 $ 0 $ 0 $ 223,500
FUND COMPLEX*,A
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
COMPENSATION TABLE
AGGREGATE COMPENSATION FROM A Gerald C. McDonough Marvin L. Mann Robert C. Pozen** Thomas R. Williams
FUND
Canada FundB $ 17 $ 14 $ 0 $ 13
Emerging Markets FundB $ 119 $ 96 $ 0 $ 94
Europe FundB $ 545 $ 441 $ 0 $ 433
Europe Capital Appreciation $ 215 $ 174 $ 0 $ 171
FundB
Hong Kong and China FundB $ 53 $ 43 $ 0 $ 42
Japan FundB $ 144 $ 116 $ 0 $ 114
Japan Smaller Companies FundB $ 184 $ 146 $ 0 $ 143
Latin America FundB $ 120 $ 97 $ 0 $ 95
Nordic FundB $ 38 $ 31 $ 0 $ 30
Pacific Basin FundB $ 113 $ 91 $ 0 $ 89
Southeast Asia FundB $ 103 $ 83 $ 0 $ 81
TOTAL COMPENSATION FROM THE $ 273,500 $ 220,500 $ 0 $ 223,500
FUND COMPLEX*,A
</TABLE>
* Information is for the calendar year ended December 31, 1998 for 237
funds in the complex.
** Interested Trustees of the funds and Ms. Johnson are compensated by
FMR.
*** Mr. Jones served on the Board of Trustees through December 31,
1999.
**** During the period from October 14, 1999 through December 31,
1999, Mr. Lautenbach served as a Member of the Advisory Board.
Effective January 1, 2000, Mr. Lautenbach serves as a Member of the
Board of Trustees.
A Compensation figures include cash, amounts required to be deferred,
and may include amounts deferred at the election of Trustees. For the
calendar year ended December 31, 1998, the Trustees accrued required
deferred compensation from the funds as follows: Ralph F. Cox,
$75,000; Phyllis Burke Davis, $75,000; Robert M. Gates, $75,000; E.
Bradley Jones, $75,000; Donald J. Kirk, $75,000; William O. McCoy,
$75,000; Gerald C. McDonough, $87,500; Marvin L. Mann, $75,000; and
Thomas R. Williams, $75,000. Certain of the non-interested Trustees
elected voluntarily to defer a portion of their compensation as
follows: Ralph F. Cox, $55,039; Marvin L. Mann, $55,039; Thomas R.
Williams, $63,433; and William O. McCoy, $55,039.
B Compensation figures include cash.
THE FOLLOWING INFORMATION HAS BEEN REMOVED FROM THE "MANAGEMENT
CONTRACTS" SECTION ON PAGE 55.
FMR voluntarily agreed to reimburse certain of the funds if and to the
extent that the fund's aggregate operating expenses, including
management fees, were in excess of an annual rate of its average net
assets. The table below shows the periods of reimbursement and levels
of expense limitations for the applicable funds; the dollar amount of
management fees incurred under each fund's contract before
reimbursement; and the dollar amount of the management fees reimbursed
by FMR under the expense reimbursement for each period.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"MANAGEMENT CONTRACTS" SECTION ON PAGE 55.
On behalf of each fund, FMR has entered into sub-advisory agreements
with FMR U.K., FMR Far East and FIIA. On behalf of Emerging Markets
Fund, Hong Kong and China Fund, Japan Fund, Japan Smaller Companies
Fund, Pacific Basin Fund, and Southeast Asia Fund, FIIA, in turn, has
entered into a sub-advisory agreement with FIIA(U.K.)L. On behalf of
Emerging Markets Fund, Hong Kong and China Fund, Japan Fund, Japan
Smaller Companies Fund, Pacific Basin Fund, and Southeast Asia Fund,
FIIA, in turn, has entered into a sub-advisory agreement with FIJ.
Pursuant to the sub-advisory agreements, FMR may receive from the
sub-advisers investment research and advice on issuers outside the
United States and FMR may 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.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"MANAGEMENT CONTRACTS" SECTION ON PAGE 55.
For providing non-discretionary investment advice and research
services the sub-advisers are compensated as follows:
(small solid bullet) FMR pays FMR U.K. and FMR Far East fees equal to
110% and 105%, respectively, of FMR U.K.'s and FMR Far East's costs
incurred in connection with providing investment advice and research
services.
(small solid bullet) FMR pays FIIA a fee equal to 30% of FMR's monthly
management fee with respect to the average net assets held by the fund
for which the sub-adviser has provided FMR with investment advice and
research services.
(small solid bullet) FIIA pays FIIA(U.K.)L a fee equal to 110% of
FIIA(U.K.)L's costs incurred in connection with providing investment
advice and research services.
(small solid bullet) FIIA pays FIJ a fee equal to 105% of FIJ's costs
incurred in connection with providing investment advice and research
services.
(small solid bullet) FMR Far East pays FIJ a fee equal to 100% of
FIJ's costs incurred in connection with providing investment advice
and research services for a fund to FMR Far East.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"MANAGEMENT CONTRACTS" SECTION ON PAGE 55.
For providing discretionary investment management and executing
portfolio transactions, the sub-advisers are compensated as follows:
(small solid bullet) FMR pays FMR U.K. and FMR Far East a fee equal to
50% of its monthly management fee (including any performance
adjustment) with respect to the fund's average net assets managed by
the sub-adviser on a discretionary basis.
(small solid bullet) FMR pays FIIA a fee equal to 57% of its monthly
management fee (including any performance adjustment) with respect to
the fund's average net assets managed by the sub-adviser on a
discretionary basis.
(small solid bullet) FIIA pays FIIA(U.K.)L a fee equal to a percentage
of the fund's monthly average net assets managed by FIIA(U.K.)L on a
discretionary basis. The fee rate is based on the monthly average net
assets managed by FIIA(U.K.)L on behalf of FIIA pursuant to
sub-advisory arrangements less any assets managed by FIIA(U.K.)L on
behalf of FIIA on which a reduction is applicable to the sub-advisory
fee paid to FIIA(U.K.)L (Average Group Assets). The fee rate is
calculated on a cumulative basis pursuant to the graduated fee rate
schedule below.
Average Group Assets Annualized Fee Rate
from $0 - $500 million 0.30%
$500 million - $1 billion 0.25%
over $500 million 0.20%
FIIA(U.K.)L's fee will not exceed 50% of the fee that FIIA receives
from FMR for services provided on behalf of the fund.
(small solid bullet) FIIA pays FIJ a fee equal to a percentage of the
fund's monthly average net assets managed by FIJ on a discretionary
basis. The fee rate is based on the monthly average net assets managed
by FIJ on behalf of FIIA pursuant to sub-advisory arrangements less
any assets managed by FIJ on behalf of FIIA on which a reduction is
applicable to the sub-advisory fee paid to FIJ (Average Group Assets).
The fee rate is calculated on a cumulative basis pursuant to the
graduated fee rate schedule below.
Average Group Assets Annualized Fee Rate
from $0 - $200 million 0.30%
$200 million - $500 million 0.25%
over $500 million 0.20%
FIJ's fee will not exceed 50% of the fee that FIIA receives from FMR
for services provided on behalf of the fund.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"MANAGEMENT CONTRACTS" SECTION ON PAGE 56.
For discretionary investment management and execution of portfolio
transactions, fees paid to FIIA, FIIA (U.K.)L., and FIJ on behalf of
Emerging Markets Fund, Europe Fund, Hong Kong and China Fund, Japan
Fund, Japan Smaller Companies Fund, Latin America Fund, Nordic Fund,
Pacific Basin Fund, and Southeast Asia Fund for the past three fiscal
years are shown in the table below.
Fiscal Year Ended October 31 FIIA FIIA(U.K.)L FIJ
Emerging Markets Fund
1999 $ 1,032,343A $ 271,883B $ 0
1998 $ 0 $ 0 $ 0
1997 $ 0 $ 0 $ 0
Europe Fund
1999 $ 3,342,771A $ 1,173,702B $ 0
1998 $ 3,337,270A $ 1,841,726B $ 0
1997 $ 3,469,914A $ 1,630,394B $ 0
Hong Kong and China Fund
1999 $ 565,181A $ 0 $ 0
1998 $ 573,302A $ 0 $ 0
1997 $ 812,733A $ 0 $ 0
Japan Fund
1999 $ 232,548A $ 0 $ 1,811,331C
1998 $ 1,202,885A $ 0 $ 0
1997 $ 1,337,897A $ 0 $ 0
Japan Smaller Companies Fund
1999 $ 0 $ 0 $ 2,613,937C
1998 $ 0 $ 0 $ 351,549C
1997 $ 0 $ 0 $ 351,251C
Latin America Fund
1999 $ 0 $ 0 $ 0
1998 $ 0 $ 0 $ 0
1997 $ 0 $ 0 $ 0
Nordic Fund
1999 $ 313,079A $ 84,643B $ 0
1998 $ 265,220A $ 118,106B $ 0
1997 $ 255,453A $ 149,480B $ 0
Pacific Basin Fund
1999 $ 195,409A $ 0 $ 0
1998 $ 1,127,973A $ 0 $ 0
1997 $ 1,186,431A $ 0 $ 0
Southeast Asia Fund
1999 $ 1,391,758A $ 0 $ 0
1998 $ 1,351,153A $ 0 $ 0
1997 $ 2,191,832A $ 0 $ 0
A Prior to August 1, 1999, FMR paid FIIA a fee equal to 50% of its
monthly management fee (including any performance adjustment) with
respect to the fund's average net assets managed by the sub-adviser on
a discretionary basis.
B Prior to July 1, 2000, FIIA paid FIIA(U.K.)L a fee equal to 110% of
FIIA(U.K.)L's costs incurred in connection with providing
discretionary investment management services.
C Prior to August 1, 1999, FMR paid FIJ a fee equal to 50% of its
monthly management fee (including any performance adjustment) with
respect to the fund's average net assets managed by the sub-adviser on
a discretionary basis. For the period August 1, 1999 to July 1, 2000,
FMR paid FIJ a fee equal to 57% of its monthly management fee
(including any performance adjustment) with respect to the fund's
average net assets managed by the sub-adviser on a discretionary
basis.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION IN THE
"MANAGEMENT CONTRACTS" SECTION ON PAGE 56.
Currently, FIIA is primarily responsible for choosing investments for
Southeast Asia Fund and Hong Kong and China Fund. Currently, FIIA
(U.K.)L is primarily responsible for choosing investments for Europe
Fund and Nordic Fund. Currently, FIJ is primarily responsible for
choosing investments for Japan Fund and Japan Smaller Companies Fund.
