(2_FIDELITY_LOGOS)FIDELITY'S
TARGETED INTERNATIONAL EQUITY
FUNDS
Fidelity(registered trademark) France Fund
Fidelity Germany Fund
Fidelity United Kingdom Fund
SEMIANNUAL REPORT
APRIL 30, 2000
CONTENTS
MARKET RECAP 3 A REVIEW OF WHAT HAPPENED IN
WORLD MARKETS DURING THE
PAST 6 MONTHS.
FRANCE FUND 4 PERFORMANCE
5 FUND TALK: THE MANAGER'S
OVERVIEW
6 INVESTMENT CHANGES
7 INVESTMENTS
9 FINANCIAL STATEMENTS
GERMANY FUND 11 PERFORMANCE
12 FUND TALK: THE MANAGER'S
OVERVIEW
13 INVESTMENT CHANGES
14 INVESTMENTS
16 FINANCIAL STATEMENTS
UNITED KINGDOM FUND 18 PERFORMANCE
19 FUND TALK: THE MANAGER'S
OVERVIEW
20 INVESTMENT CHANGES
21 INVESTMENTS
24 FINANCIAL STATEMENTS
NOTES TO FINANCIAL STATEMENTS 26 NOTES TO THE FINANCIAL
STATEMENTS
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THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF EACH FUND'S
PORTFOLIO MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS
STATED ON THE COVER AND DO NOT NECESSARILY REPRESENT THE VIEWS OF
FIDELITY OR ANY OTHER PERSON IN THE FIDELITY ORGANIZATION. ANY SUCH
VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER
CONDITIONS AND FIDELITY DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH
VIEWS. THESE VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND,
BECAUSE INVESTMENT DECISIONS FOR A FIDELITY FUND ARE BASED ON NUMEROUS
FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON
BEHALF OF ANY FIDELITY FUND.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE
SUBMITTED FOR THE GENERAL INFORMATION OF THE SHAREHOLDERS OF THE
FUNDS. THIS REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE
INVESTORS IN THE FUNDS UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE
PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED
BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC,
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT
INVESTED.
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MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL 1-800-544-6666 FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE
YOU INVEST OR SEND MONEY.
MARKET RECAP
Stock markets around the world demonstrated remarkable parallels in
general performance during the six-month period ending April 30, 2000.
The first four months of the period were characterized by investors'
infatuation with new economy stocks - primarily technology and
communications issues - at the expense of nearly every other segment
of the market. In March and April, however, rising interest rates and
inflation fears in the U.S. helped spark a worldwide tech sell-off
that, for the most part, wiped out all of 2000's year-to-date gains.
Standard & Poor's 500 Index Morgan Stanley Capital International
Europe, Australasia, Far East Index
* YEAR TO DATE THROUGH APRIL 30, 2000.
SM
Row: 1, Col: 1, Value: nil
Row: 1, Col: 2, Value: nil
Row: 2, Col: 1, Value: 6.1
Row: 2, Col: 2, Value: 7.38
Row: 3, Col: 1, Value: 31.57
Row: 3, Col: 2, Value: 56.16
Row: 4, Col: 1, Value: 18.56
Row: 4, Col: 2, Value: 69.44000000000001
Row: 5, Col: 1, Value: 5.1
Row: 5, Col: 2, Value: 24.63
Row: 6, Col: 1, Value: 16.61
Row: 6, Col: 2, Value: 28.27
Row: 7, Col: 1, Value: 31.69
Row: 7, Col: 2, Value: 10.53
Row: 8, Col: 1, Value: -3.1
Row: 8, Col: 2, Value: -23.45
Row: 9, Col: 1, Value: 30.47
Row: 9, Col: 2, Value: 12.13
Row: 10, Col: 1, Value: 7.619999999999999
Row: 10, Col: 2, Value: -12.17
Row: 11, Col: 1, Value: 10.08
Row: 11, Col: 2, Value: 32.56
Row: 12, Col: 1, Value: 1.32
Row: 12, Col: 2, Value: 7.78
Row: 13, Col: 1, Value: 37.58
Row: 13, Col: 2, Value: 11.21
Row: 14, Col: 1, Value: 22.96
Row: 14, Col: 2, Value: 6.05
Row: 15, Col: 1, Value: 32.11
Row: 15, Col: 2, Value: 4.819999999999999
Row: 16, Col: 1, Value: 28.58
Row: 16, Col: 2, Value: 20.27
Row: 17, Col: 1, Value: 12.03
Row: 17, Col: 2, Value: 12.79
Row: 18, Col: 1, Value: -0.78
Row: 18, Col: 2, Value: -5.3
%
EUROPE: New economy stocks lifted the Old World's equity markets for
most of the six months ending April 30, 2000. Europe entered the
period on an upbeat note. Its overall economy was improving, corporate
profits were rising, and its equity markets were enjoying the rapid
appreciation of Internet and wireless stocks. That backdrop lasted
through mid-March, when new economy stocks hit the wall. From that
point through the end of April, European equity markets fell in
conjunction with the rest of the world's. Overall, however, the
six-month period was a strong one given the 8.43% return of the Morgan
Stanley Capital International (MSCI) Europe Index.
EMERGING MARKETS: Traditionally among the most turbulent investment
opportunities, emerging markets were some of the strongest performers
during the past six months. Asian emerging markets performed very well
for the most part, but were among the first regions to fall victim to
volatile new economy stocks and U.S. inflation fears. South Korea and
Hong Kong were two of the stronger performers, while Taiwan, India and
Singapore all benefited from their well-developed technology
industries. For the period, the MSCI All Country Asia Free ex-Japan
Index returned 7.23%. Latin American emerging markets performed even
better, based on the 20.84% return of the MSCI Emerging Markets
Free-Latin America Index. Mexico, the largest country in the index,
was its top performer. European emerging markets also were solid.
Russia was a tremendous turnaround story, while the Turkish market
posted exceptional gains, boosted by an International Monetary Fund
loan and its European Union candidacy.
JAPAN AND THE FAR EAST: After gaining a stellar 75.89% in 1999, the
Tokyo Stock Exchange Index - a gauge of the Japanese market better
known as TOPIX - was down over 9% through the first four months of
2000. What changed? Japan's economy, the world's second largest,
slipped into a recession late last year, and investors began to shy
away from "New Japan" - akin to new economy - stocks on fears that
profit expectations would not be met and that the stocks were
overpriced. For the six months ending April 30, 2000, the TOPIX index
was up 2.10%. Conversely, Hong Kong and China maintained their
momentum from 1999, benefiting in part from fast-growing economies and
China's impending entry into the World Trade Organization. For the
period, the Hang Seng Index returned 16.77%.
U.S. AND CANADA: Record-setting equity market performance driven by
soaring telecommunications and technology stocks, a strong economy,
historically low levels of unemployment, and a Federal Reserve Board
trying to keep it all from spiraling out of control were just a few of
the contributing factors to U.S. stock market performance for the past
six months. And how this story ended was similar around the world -
with a steep, six-week plunge in new economy stocks that wiped out
most of the new year's gains. For the six-month period, the Standard &
Poor's 500SM Index returned 7.20%. The tech-heavy NASDAQ Composite
Index gained 30.28% - despite falling over 15% in the month of April -
while the Dow Jones Industrial Average gained 0.78%. The Canadian
equity market - traditionally driven by natural resources stocks -
also benefited from surging tech shares, which in 1999 helped the
Toronto Stock Exchange (TSE) 300 post its best performance of the
decade. Also, because the TSE 300 was a bit broader than most major
equity indexes, it didn't fall as much during the tech correction in
April. The TSE gained 28.83% during the past six months, one of the
best returns of any broad-based equity index in the world for that
time.
BONDS: Accelerating interest rates and compelling stock market returns
took their toll on U.S. fixed-income investments. However, many bonds
bounced back somewhat as a haven from turbulent equities in the later
stages of the six-months ending April 30. During this time, the U.S.
taxable bond market, as measured by the Lehman Brothers Aggregate Bond
Index, gained 1.42%. Treasuries were one of the strongest bond
segments in the U.S., sparked by the Treasury's plans to buy back
long-term debt and curtail future government debt auctions. For the
period, the Lehman Brothers Long Term Government Index returned 4.54%.
Government bonds internationally fared even worse, highlighted by the
Salomon Brothers Non-U.S. World Government Bond Index return of
-6.86%. For bonds, emerging markets were the place to be, as the JP
Morgan Emerging Markets Bond Index returned 12.43% for the past six
months.
FRANCE
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value). If Fidelity had not reimbursed certain fund
expenses, the total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1994 PAST 6 MONTHS PAST 1 YEAR LIFE OF FUND
FIDELITY FRANCE 18.83% 33.31% 150.39%
FIDELITY FRANCE (INCL. 15.27% 29.31% 142.88%
3.00% SALES CHARGE)
SBF 250 12.72% 27.31% 154.81%
European Region Funds Average 21.51% 25.29% n/a
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year or since
the fund started on November 1, 1995. For example, if you had invested
$1,000 in a fund that had a 5% return over the past year, the value of
your investment would be $1,050. You can compare the fund's returns to
the performance of the Societe des Bourses Franeaises 250 Index (SBF
250) - a market capitalization-weighted index of the 250 largest
companies in the French market. To measure how the fund's performance
stacked up against its peers, you can compare the fund's performance
to the European region funds average, which reflects the performance
of mutual funds with similar objectives tracked by Lipper Inc. The
past six months average represents a peer group of 161 mutual funds.
These benchmarks include reinvested dividends and capital gains, if
any, and exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1994 PAST 1 YEAR LIFE OF FUND
FIDELITY FRANCE 33.31% 22.63%
FIDELITY FRANCE (INCL. 29.31% 21.80%
3.00% SALES CHARGE)
SBF 250 27.31% 23.11%
European Region Funds Average 25.29% n/a
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
France SBF 250
00345 EX001
1995/11/01 9700.00 10000.00
1995/11/30 9515.70 9996.87
1995/12/31 9952.70 10331.57
1996/01/31 10381.19 10618.07
1996/02/29 10799.95 11028.30
1996/03/31 11150.53 11258.88
1996/04/30 11403.73 11466.65
1996/05/31 11647.19 11517.59
1996/06/30 11803.01 11777.11
1996/07/31 11559.54 11522.35
1996/08/31 11393.99 11290.00
1996/09/30 11617.98 11688.17
1996/10/31 11919.87 11888.32
1996/11/30 12299.67 12521.77
1996/12/31 12484.65 12692.23
1997/01/31 13045.52 12947.26
1997/02/28 13180.55 13046.89
1997/03/31 13585.62 13392.49
1997/04/30 13076.68 12816.85
1997/05/31 12889.72 12695.77
1997/06/30 13855.67 13730.74
1997/07/31 14125.72 14007.70
1997/08/31 13388.28 13106.00
1997/09/30 14707.37 14283.43
1997/10/31 13782.97 13413.94
1997/11/30 13814.13 13600.74
1997/12/31 14290.14 14013.96
1998/01/31 14665.89 14539.07
1998/02/28 15724.84 15771.19
1998/03/31 17410.05 17395.62
1998/04/30 18059.09 18099.22
1998/05/31 19357.16 19161.02
1998/06/30 19527.95 19713.51
1998/07/31 19619.05 19896.29
1998/08/31 16487.74 17660.05
1998/09/30 15485.73 16376.52
1998/10/31 16795.18 18030.99
1998/11/30 17706.10 19077.94
1998/12/31 18423.46 19816.20
1999/01/31 19231.90 20468.32
1999/02/28 17968.00 19175.46
1999/03/31 17865.52 19389.56
1999/04/30 18218.50 20014.23
1999/05/31 17763.04 19663.45
1999/06/30 18662.58 20588.65
1999/07/31 18639.80 20857.23
1999/08/31 19083.88 21553.07
1999/09/30 19562.11 21781.13
1999/10/31 20438.88 22606.15
1999/11/30 21850.81 23547.07
1999/12/31 25118.76 26326.81
2000/01/31 23536.02 24620.31
2000/02/29 26257.41 26420.24
2000/03/31 25870.27 26388.71
2000/04/28 24287.54 25480.68
IMATRL PRASUN SHR__CHT 20000430 20000519 111626 R00000000000057
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity France Fund on November 1, 1995, when the fund
started, and the current 3.00% sales charge was paid. As the chart
shows, by April 30, 2000, the value of the investment would have grown
to $24,288 - a 142.88% increase on the initial investment. For
comparison, look at how the Societe des Bourses Franeaises 250 Index
did over the same period. With dividends and capital gains, if any,
reinvested, the same $10,000 would have grown to $25,481 - a 154.81%
increase.
UNDERSTANDING PERFORMANCE
Many markets around the globe offer the
potential for significant growth over time; however,
investing in foreign markets means assuming greater
risks than investing in the United States. Factors like
changes in a country's financial markets, its local
political and economic climate, and the fluctuating
value of its currency create these risks. For these
reasons an international fund's performance may
be more volatile than a fund that invests exclusively
in the United States. Past performance is no
guarantee of future results and you may have a
gain or loss when you sell your shares.
(checkmark)
FRANCE
FUND TALK: THE MANAGER'S OVERVIEW
(portfolio manager photograph)
An interview with
Alexandra Hartmann, Portfolio Manager of
Fidelity France Fund
Q. HOW DID THE FUND PERFORM, ALEXANDRA?
A. For the six-month period that ended April 30, 2000, the fund
returned 18.83%, compared to 12.72% for the Societe des Bourses
Francaises (SBF) 250 Index and the European region funds average
return of 21.51%, as monitored by Lipper Inc. For the one-year period,
the fund returned 33.31%, while the SBF 250 index returned 27.31% and
the Lipper European region funds average return was 25.29%.
Q. WHAT FACTORS AFFECTED PERFORMANCE?
A. Economic growth was strong in France during the six-month period.
While the stock market averages tended to do well, performance was
concentrated during most of the period in a narrow band of industries,
including telecommunications, media and advertising, and information
technology. In general, French telecommunications and information
technology stocks performed very well, consistent with industry
performance in other geographic markets. The generally improving
economic conditions and limited advertising space created
exceptionally strong opportunities for media and advertising
companies. I emphasized all these industries throughout most of the
period, which helped the fund's performance. Traditional cyclical
industries, including construction, engineering and automobile
companies, tended to underperform during the past six months.
Q. WHAT WERE YOUR PRIMARY STRATEGIES?
A. During most of the six-month period, I had aggressive weightings in
the telecommunications, media and information technology industries
relative to the index. I underweighted retailers and traditional
cyclical companies, including automotive companies Peugeot and
Renault, and their suppliers. The industry was operating at 25%
over-capacity and car manufacturers had little pricing power to
overcome the effects of rising costs for raw materials. I saw this as
a threat to profit margins.
Q. WHAT STOCKS HELPED PERFORMANCE?
A. Telecommunications companies did very well, especially in the first
four months of the period, before losing some ground in March and
April. France Telecom, the fund's second-largest holding, was a very
strong performer. Technology holdings that contributed to performance
included Valtech, which provides consulting services for companies
using the Internet, and Transiciel, an information technology
consulting company, which I sold at a profit. The strong advertising
market helped two holdings perform extremely well: NRJ, which owns
several radio stations, and Havas Advertising. Both showed exceptional
earnings growth as advertising spending rose. My underweighting of
retailers and cyclical companies also helped fund performance.
Q. WHAT STOCKS WERE DISAPPOINTING?
A. Alstom, which is involved in railroads, power generation and
distribution, was a major disappointment. Its stock price suffered
because of expectations that the company would issue additional shares
of stock. Equant, a leading data networking and data services company,
also had disappointing stock performance. As a result, I believe the
stock is very undervalued now, and the fund continues to own it.
Q. WHAT IS YOUR OUTLOOK?
A. I have become more cautious. During the past six months, strong
performance by telecommunications, media and information technology
companies has resulted in very high valuations, and I have reduced my
exposure to those areas. Other sectors have become very cheap and
relatively more attractive. I see potential opportunities in banking,
catering, utility and pharmaceutical companies, and I have positioned
the fund more conservatively. Most investors expect interest rates to
rise, and this has created uncertainty in the market. I expect limited
performance of the market overall because of the poor performance of
the euro since its introduction in January 1999 and pressures to raise
interest rates.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET OR OTHER CONDITIONS. FOR MORE INFORMATION, SEE PAGE 2.
NOTE TO SHAREHOLDERS: On January 20, 2000, the Board of Trustees of
Fidelity France Fund voted to present a proposal to shareholders to
merge the fund into Fidelity Europe Fund. A shareholder meeting is
scheduled for July 19, 2000. If shareholders approve the merger, it
will occur on or about July 28, 2000.
FUND FACTS
GOAL: long-term growth of capital by investing
mainly in equity securities of French issuers
FUND NUMBER: 345
TRADING SYMBOL: FRANX
START DATE: November 1, 1995
SIZE: as of April 30, 2000, more than
$13 million
MANAGER: Alexandra Hartmann, since 1998;
manager, Fidelity Germany Fund, since 1996;
joined Fidelity in 1994
(checkmark)
FRANCE
INVESTMENT CHANGES
AS OF APRIL 30, 2000
United States 2.0%
Finland 1.3%
United Kingdom 0.9%
Row: 1, Col: 1, Value: 1.3
Row: 1, Col: 2, Value: 81.90000000000001
Row: 1, Col: 3, Value: 0.3
Row: 1, Col: 4, Value: 1.7
Row: 1, Col: 5, Value: 7.1
Row: 1, Col: 6, Value: 4.8
Row: 1, Col: 7, Value: 2.0
Row: 1, Col: 8, Value: 1.3
Switzerland 4.8%
Netherlands 7.1%
Luxembourg 1.7%
Germany 0.3%
France 81.9%
GEOGRAPHIC DIVERSIFICATION (%
OF FUND'S NET ASSETS)
AS OF OCTOBER 31, 1999
Austria 0.8%
United States 4.9%
Netherlands 5.8%
Row: 1, Col: 1, Value: 0.8
Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 87.40000000000001
Row: 1, Col: 4, Value: 1.1
Row: 1, Col: 5, Value: 5.8
Row: 1, Col: 6, Value: 4.9
Luxembourg 1.1%
France 87.4%
<TABLE>
<CAPTION>
<S> <C> <C>
ASSET ALLOCATION
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Stocks 98.9 95.1
Short-Term Investments and 1.1 4.9
Net Other Assets
TOP TEN STOCKS BY ISSUER AS
OF APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
TotalFinaElf SA (Oil & Gas) 9.9 8.8
France Telecom SA (Telephone 9.6 9.2
Services)
Vivendi SA (Water) 5.1 1.7
AXA SA de CV (Insurance) 4.6 4.4
STMicroelectronics NV 4.1 3.0
(Electronics)
Alcatel SA (Electrical 3.6 0.0
Equipment)
Banque Nationale de Paris 3.6 3.7
(BNP) (Banks)
Sanofi-Synthelabo SA (Drugs 3.3 0.0
& Pharmaceuticals)
Aventis SA (Chemicals & 3.1 0.0
Plastics)
Equant NV (Computer Services 3.0 2.7
& Software)
49.9 33.5
TOP TEN MARKET SECTORS AS OF
APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Utilities 15.6 10.9
Technology 15.3 11.5
Finance 11.2 10.2
Energy 9.9 8.8
Nondurables 7.6 6.9
Media & Leisure 5.8 7.5
Durables 5.6 5.1
Services 5.2 8.0
Industrial Machinery & 5.2 1.8
Equipment
Retail & Wholesale 4.7 11.0
</TABLE>
FRANCE
INVESTMENTS APRIL 30, 2000 (UNAUDITED)
Showing Percentage of Net Assets
COMMON STOCKS - 98.9%
SHARES VALUE (NOTE 1)
BASIC INDUSTRIES - 4.6%
CHEMICALS & PLASTICS - 4.6%
Aventis SA (France) 7,640 $ 429,750
BASF AG 910 39,887
Rhodia SA 9,325 173,385
643,022
CONSTRUCTION & REAL ESTATE -
2.4%
BUILDING MATERIALS - 0.6%
Ciments Francais SA Series A 1,780 84,120
ENGINEERING - 1.8%
Bouygues SA 380 243,138
TOTAL CONSTRUCTION & REAL 327,258
ESTATE
DURABLES - 5.6%
AUTOS, TIRES, & ACCESSORIES -
1.6%
Peugeot SA 510 105,797
Renault SA 2,540 115,754
221,551
TEXTILES & APPAREL - 4.0%
Christian Dior SA 1,512 360,376
Hermes International SA 1,414 201,051
561,427
TOTAL DURABLES 782,978
ENERGY - 9.9%
OIL & GAS - 9.9%
TotalFinaElf SA Class B 9,053 1,369,272
FINANCE - 11.2%
BANKS - 6.0%
Banque Nationale de Paris 6,080 492,650
(BNP)
Societe Generale Class A 1,630 338,434
831,084
INSURANCE - 5.2%
Assurances Generales France 1,880 93,644
(Bearer)
AXA SA de CV 4,290 637,741
731,385
TOTAL FINANCE 1,562,469
HEALTH - 3.3%
DRUGS & PHARMACEUTICALS - 3.3%
Sanofi-Synthelabo SA 12,310 460,579
HOLDING COMPANIES - 1.2%
Lagardere S.C.A. (Reg.) 1,340 90,990
Marine Wendel SA 1,116 81,476
172,466
SHARES VALUE (NOTE 1)
INDUSTRIAL MACHINERY &
EQUIPMENT - 5.2%
ELECTRICAL EQUIPMENT - 4.7%
ABB Ltd. (Switzerland) (Reg.) 1,350 $ 151,963
Alcatel SA (RFD) 2,199 499,585
651,548
INDUSTRIAL MACHINERY &
EQUIPMENT - 0.5%
Sidel SA 1,035 64,903
TOTAL INDUSTRIAL MACHINERY & 716,451
EQUIPMENT
MEDIA & LEISURE - 5.8%
BROADCASTING - 4.7%
Audiofina 1,200 148,202
Canal Plus SA 840 162,311
NRJ SA 99 64,246
Societe Europeen Des 610 92,919
Satellite unit
Television Francaise 1 SA 278 190,797
658,475
ENTERTAINMENT - 0.5%
Europeene de Casinos SA 813 69,655
RESTAURANTS - 0.6%
Elior (a) 7,000 76,370
TOTAL MEDIA & LEISURE 804,500
NONDURABLES - 7.6%
BEVERAGES - 1.5%
Louis Vuitton Moet Hennessy 477 200,686
(LVMH)
FOODS - 1.5%
Nestle SA (Reg.) 120 212,216
HOUSEHOLD PRODUCTS - 4.6%
Clarins SA 2,409 239,329
L'Oreal SA 587 399,126
638,455
TOTAL NONDURABLES 1,051,357
RETAIL & WHOLESALE - 4.7%
APPAREL STORES - 0.4%
Brice SA 1,297 49,177
GENERAL MERCHANDISE STORES -
2.5%
Carrefour SA 5,420 353,708
GROCERY STORES - 0.4%
Guyenne Et Gascogne SA 159 57,533
RETAIL & WHOLESALE,
MISCELLANEOUS - 1.4%
Castorama Dubois 370 80,937
Investissements SA
Pinault Printemps SA 544 110,024
190,961
TOTAL RETAIL & WHOLESALE 651,379
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
SERVICES - 5.2%
ADVERTISING - 0.7%
Havas Advertising SA 205 $ 102,579
SERVICES - 4.5%
Adecco SA 190 156,399
ALTEN (a) 195 27,193
Cegedim SA 1,177 107,814
Suez Lyonnaise des Eaux 2,090 328,601
(France)
620,007
TOTAL SERVICES 722,586
TECHNOLOGY - 15.3%
COMMUNICATIONS EQUIPMENT - 1.3%
Nokia AB 3,280 186,550
COMPUTER SERVICES & SOFTWARE
- 5.1%
Activcard SA (a) 540 14,580
Cap Gemini SA 960 188,998
Devoteam SA (a) 260 36,021
Equant NV (a) 5,367 416,533
Valtech SA (a) 3,730 52,695
708,827
COMPUTERS & OFFICE EQUIPMENT
- 0.9%
SCM Microsystems, Inc. (a) 1,450 120,068
ELECTRONIC INSTRUMENTS - 1.1%
Kudelski SA (a) 15 154,799
ELECTRONICS - 6.9%
Schneider SA 3,791 248,782
Silicon On Insulator 560 137,862
TEChnologies SA (SOITEC) (a)
STMicroelectronics NV 2,969 568,009
954,653
TOTAL TECHNOLOGY 2,124,897
TRANSPORTATION - 1.3%
RAILROADS - 1.3%
Alstom SA 7,261 181,400
UTILITIES - 15.6%
CELLULAR - 0.9%
Vodafone AirTouch PLC 26,920 126,524
TELEPHONE SERVICES - 9.6%
France Telecom SA 8,580 1,331,005
WATER - 5.1%
Vivendi SA 7,180 712,010
TOTAL UTILITIES 2,169,539
TOTAL COMMON STOCKS 13,740,153
(Cost $11,023,667)
CASH EQUIVALENTS - 2.3%
SHARES VALUE (NOTE 1)
Central Cash Collateral Fund, 74,100 $ 74,100
5.94% (b)
Taxable Central Cash Fund, 251,501 251,501
5.77% (b)
TOTAL CASH EQUIVALENTS 325,601
(Cost $325,601)
TOTAL INVESTMENT PORTFOLIO - 14,065,754
101.2%
(Cost $11,349,268)
NET OTHER ASSETS - (1.2)% (170,788)
NET ASSETS - 100% $ 13,894,966
LEGEND
(a) Non-income producing
(b) The rate quoted is the annualized seven-day yield of the fund at
period end.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $12,026,886 and $11,322,779, respectively.
The fund participated in the security lending program. At period end,
the value of securities loaned amounted to $75,069. The fund received
cash collateral of $74,100 which was invested in cash equivalents.
INCOME TAX INFORMATION
At April 30, 2000, the aggregate cost of investment securities for
income tax purposes was $11,442,971. Net unrealized appreciation
aggregated $2,622,783, of which $3,161,962 related to appreciated
investment securities and $539,179 related to depreciated investment
securities.
At October 31, 1999, the fund had a capital loss carryforward of
approximately $694,000 all of which will expire on October 31, 2006.
FRANCE
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000 (UNAUDITED)
ASSETS
Investment in securities, at $ 14,065,754
value (cost $11,349,268) -
See accompanying schedule
Receivable for investments 1,349
sold
Dividends receivable 47,583
Interest receivable 529
Redemption fees receivable 14
Other receivables 631
TOTAL ASSETS 14,115,860
LIABILITIES
Payable for investments $ 1,364
purchased
Payable for fund shares 99,177
redeemed
Accrued management fee 15,903
Other payables and accrued 30,350
expenses
Collateral on securities 74,100
loaned, at value
TOTAL LIABILITIES 220,894
NET ASSETS $ 13,894,966
Net Assets consist of:
Paid in capital $ 10,415,006
Accumulated net investment (97,873)
loss
Accumulated undistributed net 867,528
realized gain (loss) on
investments and foreign
currency transactions
Net unrealized appreciation 2,710,305
(depreciation) on
investments and assets and
liabilities in foreign
currencies
NET ASSETS, for 651,370 $ 13,894,966
shares outstanding
NET ASSET VALUE and $21.33
redemption price per share
($13,894,966 (divided by)
651,370 shares)
Maximum offering price per $21.99
share (100/97.00 of $21.33)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30,
2000 (UNAUDITED)
INVESTMENT INCOME $ 23,552
Dividends
Interest 20,853
Security lending 2,176
46,581
Less foreign taxes withheld (5,470)
TOTAL INCOME 41,111
EXPENSES
Management fee $ 51,235
Transfer agent fees 22,230
Accounting and security 30,032
lending fees
Non-interested trustees' 20
compensation
Custodian fees and expenses 28,925
Registration fees 8,764
Audit 10,101
Legal 166
Miscellaneous 14
Total expenses before 151,487
reductions
Expense reductions (12,503) 138,984
NET INVESTMENT INCOME (LOSS) (97,873)
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities 1,606,240
Foreign currency transactions 14,493 1,620,733
Change in net unrealized
appreciation (depreciation)
on:
Investment securities 282,877
Assets and liabilities in (14,247) 268,630
foreign currencies
NET GAIN (LOSS) 1,889,363
NET INCREASE (DECREASE) IN $ 1,791,490
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION Sales $ 25,739
charges paid to FDC
Sales charges - Retained by $ 25,739
FDC
Expense reductions $ 12,427
FMR reimbursement
Directed brokerage 76
arrangements
$ 12,503
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
INCREASE (DECREASE) IN NET SIX MONTHS ENDED APRIL 30, YEAR ENDED OCTOBER 31, 1999
ASSETS 2000 (UNAUDITED)
Operations Net investment $ (97,873) $ (80,513)
income (loss)
Net realized gain (loss) 1,620,733 1,545,803
Change in net unrealized 268,630 1,020,638
appreciation (depreciation)
NET INCREASE (DECREASE) IN 1,791,490 2,485,928
NET ASSETS RESULTING FROM
OPERATIONS
Share transactions Net 8,567,975 6,925,778
proceeds from sales of shares
Cost of shares redeemed (8,227,279) (14,139,720)
NET INCREASE (DECREASE) IN 340,696 (7,213,942)
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
Redemption fees 37,262 23,371
TOTAL INCREASE (DECREASE) 2,169,448 (4,704,643)
IN NET ASSETS
NET ASSETS
Beginning of period 11,725,518 16,430,161
End of period (including $ 13,894,966 $ 11,725,518
accumulated net investment
loss of $97,873 and $0,
respectively)
OTHER INFORMATION
Shares
Sold 391,587 418,188
Redeemed (393,595) (878,342)
Net increase (decrease) (2,008) (460,154)
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SIX MONTHS ENDED APRIL 30, 2000 YEARS ENDED OCTOBER 31,
SELECTED PER-SHARE DATA (UNAUDITED) 1999 1998 1997 1996 E
Net asset value, beginning of $ 17.95 $ 14.75 $ 13.27 $ 12.24 $ 10.00
period
Income from Investment
Operations
Net investment income (loss) (.15) D (.10) D .06 D .10 D .23
Net realized and unrealized 3.47 3.27 2.46 1.66 1.98
gain (loss)
Total from investment 3.32 3.17 2.52 1.76 2.21
operations
Less Distributions
From net investment income - - (.04) (.16) (.04)
From net realized gain - - (1.15) (.61) -
Total distributions - - (1.19) (.77) (.04)
Redemption fees added to paid .06 .03 .15 .04 .07
in capital
Net asset value, end of period $ 21.33 $ 17.95 $ 14.75 $ 13.27 $ 12.24
TOTAL RETURN B, C 18.83% 21.69% 21.85% 15.63% 22.89%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 13,895 $ 11,726 $ 16,430 $ 5,578 $ 5,542
(000 omitted)
Ratio of expenses to average 2.00% A, F 2.00% F 2.12% F 2.00% F 2.00% F
net assets
Ratio of expenses to average 2.00% A 1.98% G 2.12% 2.00% 2.00%
net assets after expense
reductions
Ratio of net investment (1.41)% A (.63)% .40% .78% 1.74%
income (loss) to average net
assets
Portfolio turnover rate 175% A 118% 182% 150% 129%
A ANNUALIZED
B THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
D NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
E FOR THE PERIOD NOVEMBER 1,
1995 (COMMENCEMENT OF
OPERATIONS) TO OCTOBER 31,
1996.
F FMR AGREED TO REIMBURSE A
PORTION OF THE FUND'S
EXPENSES DURING THE PERIOD.
WITHOUT THIS REIMBURSEMENT,
THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
G FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
</TABLE>
GERMANY
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value). If Fidelity had not reimbursed certain fund
expenses, the life of fund total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED OCTOBER 31, PAST 6 MONTHS PAST 1 YEAR LIFE OF FUND
1994
FIDELITY GERMANY 29.11% 32.83% 119.39%
FIDELITY GERMANY (INCL. 25.23% 28.84% 112.81%
3.00% SALES CHARGE)
DAX 100 13.26% 15.58% 104.55%
European Region Funds Average 21.51% 25.29% n/a
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year or since
the fund started on November 1, 1995. For example, if you had invested
$1,000 in a fund that had a 5% return over the past year, the value of
your investment would be $1,050. You can compare the fund's returns to
the performance of the Deutscher Aktienindex 100 (DAX 100) Index - a
market capitalization-weighted index of the 100 most heavily traded
stocks in the German market. To measure how the fund's performance
stacked up against its peers, you can compare the fund's performance
to the European region funds average, which reflects the performance
of mutual funds with similar objectives tracked by Lipper Inc. The
past six months average represents a peer group of 161 mutual funds.
These benchmarks include reinvested dividends and capital gains, if
any, and exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, PAST 1 YEAR LIFE OF FUND
1994
FIDELITY GERMANY 32.83% 19.08%
FIDELITY GERMANY (INCL. 28.84% 18.28%
3.00% SALES CHARGE)
DAX 100 15.58% 17.24%
European Region Funds Average 25.29% n/a
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
Germany DAX 100
00346 EX002
1995/11/01 9700.00 10000.00
1995/11/30 9622.40 10045.93
1995/12/31 9835.80 10293.16
1996/01/31 10320.80 10746.76
1996/02/29 10369.30 10830.07
1996/03/31 10495.40 10812.65
1996/04/30 10194.70 10413.05
1996/05/31 10573.00 10679.84
1996/06/30 10650.60 10956.77
1996/07/31 10524.50 10921.61
1996/08/31 10660.30 11180.88
1996/09/30 10747.60 11282.48
1996/10/31 10999.80 11378.77
1996/11/30 11523.60 11820.89
1996/12/31 11650.51 12007.46
1997/01/31 11570.43 11917.66
1997/02/28 12000.82 12383.06
1997/03/31 12631.39 13186.91
1997/04/30 12341.13 12745.27
1997/05/31 12951.68 13390.51
1997/06/30 13352.04 13933.20
1997/07/31 14473.05 15226.21
1997/08/31 13221.92 13796.83
1997/09/30 14242.84 14883.23
1997/10/31 13251.95 13772.76
1997/11/30 13642.30 14115.89
1997/12/31 14018.54 14726.44
1998/01/31 14634.74 15145.43
1998/02/28 15349.97 16176.40
1998/03/31 16560.36 17180.21
1998/04/30 17704.73 17760.59
1998/05/31 18750.07 19367.83
1998/06/30 19256.24 20055.83
1998/07/31 19960.47 20301.79
1998/08/31 15944.16 16938.45
1998/09/30 15669.08 16560.16
1998/10/31 16274.27 17435.20
1998/11/30 17132.55 18261.47
1998/12/31 17286.60 18447.96
1999/01/31 17341.62 18214.98
1999/02/28 16032.19 16900.12
1999/03/31 15261.94 16522.94
1999/04/30 16021.19 17697.48
1999/05/31 15118.90 16576.94
1999/06/30 15900.15 17283.48
1999/07/31 15900.15 17016.61
1999/08/31 15955.17 17451.52
1999/09/30 15889.15 17232.00
1999/10/31 16483.34 18059.77
1999/11/30 17473.66 18361.49
1999/12/31 20147.53 21303.70
2000/01/31 19993.48 20478.31
2000/02/29 23294.55 22424.24
2000/03/31 22898.42 22254.53
2000/04/28 21280.89 20455.18
IMATRL PRASUN SHR__CHT 20000430 20000519 112354 R00000000000057
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Germany Fund on November 1, 1995, when the fund
started, and the current 3.00% sales charge was paid. As the chart
shows, by April 30, 2000, the value of the investment would have grown
to $21,281 - a 112.81% increase on the initial investment. For
comparison, look at how the Deutscher Aktienindex 100 Index did over
the same period. With dividends and capital gains, if any, reinvested,
the same $10,000 would have grown to $20,455 - a 104.55% increase.
UNDERSTANDING PERFORMANCE
Many markets around the globe offer the
potential for significant growth over time; however,
investing in foreign markets means assuming greater
risks than investing in the United States. Factors like
changes in a country's financial markets, its local
political and economic climate, and the fluctuating
value of its currency create these risks. For these
reasons an international fund's performance may
be more volatile than a fund that invests exclusively
in the United States. Past performance is no
guarantee of future results and you may have a
gain or loss when you sell your shares.
(checkmark)
GERMANY
FUND TALK: THE MANAGER'S OVERVIEW
(portfolio manager photograph)
An interview with Alexandra Hartmann, Portfolio Manager of Fidelity
Germany Fund
Q. HOW DID THE FUND PERFORM, ALEXANDRA?
A. For the six-month period that ended April 30, 2000, the fund
returned 29.11%, compared to 13.26% for the Deutscher Aktienindex
(DAX) 100 and the European region funds average return of 21.51%, as
monitored by Lipper Inc. For the one-year period, the fund returned
32.83%, while the DAX 100 returned 15.58% and the Lipper European
region funds average return was 25.29%.
Q. WHAT FACTORS AFFECTED PERFORMANCE?
A. Economic growth accelerated slightly in Germany during the
six-month period, as it did throughout Europe. Generally improving
economic conditions, the deregulation of the utility and
telecommunications industries, as well as more services via the
Internet particularly benefited advertising and media companies, as
demand for advertising space increased and rates rose. The leading
performers tended to be clustered in the telecommunications, media and
information technology industries, all of which I overweighted
relative to the index, especially early in the six-month period. In
technology, stock valuations rose to very high levels. The number of
initial public stock offerings also increased as young technology
companies wanted to use publicly traded stocks as a currency to
acquire other companies. Traditional cyclical industries, including
construction, engineering and automobile companies, tended to perform
less well. I was underweighted in all these industries.
Q. WHAT WERE YOUR PRIMARY STRATEGIES?
A. Early in the period, I had aggressive weightings in the
telecommunications, media and information technology industries.
However, as stock valuations climbed to high levels, I became more
conservative, reducing the fund's exposure to information technology
and media, although I continued to emphasize telecommunications
equipment and semiconductor companies. I reduced telecommunications
service providers, however, because I was concerned that the business
model for these companies was changing because of the high costs of
obtaining licenses for the third generation of technology. Late in the
period, I invested more in undervalued companies, including several in
the pharmaceutical industry and in the consumer products industry.
Q. WHAT STOCKS HELPED PERFORMANCE?
A. Intershop was an exceptionally strong contributor. The company
offers the software to enable smaller retail stores to put their
products on the Internet. MLP, an asset manager and insurance broker,
performed well. Demand grew for investment products that MLP offered
to clients. Siemens, a large, diversified technology company, did very
well as it restructured operations and spun off its semiconductor
business. SCM Microsystems is another technology company that did very
well. It provides access modules and encryption technology for the
pay-TV industry. Not owning poor-performing companies, such as
Volkswagen, also helped performance because of their weak stock
performance.
Q. WHAT STOCKS WERE DISAPPOINTING?
A. Karstadt, a clothing retailer that merged with a mail-order house,
did poorly. Despite the company's strong potential to save costs,
management was not aggressive enough in re-organizing operations after
the merger. Wella was disappointing over the full year, as economic
problems in Russia and Asia hurt sales in 1999. However, I think the
company now is very attractively priced and should benefit from
cost-cutting and opportunities to increase sales of its hair care
products. BASF, the diversified chemical company, also was
disappointing. Despite good earnings, the company's stock lagged along
with cyclical stocks in general.
Q. WHAT IS YOUR OUTLOOK?
A. I have become more cautious and conservative recently and have
reduced weightings in technology, media and telecommunications
providers. Interest rates and currencies are two factors affecting the
markets. Most investors expect interest rates in Europe to increase,
and this has created uncertainty within the equity markets. The euro
has lost about 25% of its value versus the dollar since its
introduction in January 1999. While the weak currency creates some
short-term opportunities for exporters, it also increases pressures to
raise interest rates in the longer term, which could slow economic
growth.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET OR OTHER CONDITIONS. FOR MORE INFORMATION, SEE PAGE 2.
FUND FACTS
GOAL: long-term growth of capital by investing
mainly in equity securities of German issuers
FUND NUMBER: 346
TRADING SYMBOL: FGERX
START DATE: November 1, 1995
SIZE: as of April 30, 2000, more than $55
million
MANAGER: Alexandra Hartmann, since 1996;
manager, Fidelity France Fund, since 1998;
joined Fidelity in 1994
(checkmark)
NOTE TO SHAREHOLDERS: On January 20, 2000, the Board of Trustees of
Fidelity Germany Fund voted to present a proposal to shareholders to
merge the fund into Fidelity Europe Fund. A shareholder meeting is
scheduled for July 19, 2000. If shareholders approve the merger, it
will occur on or about July 26, 2000.
GERMANY
INVESTMENT CHANGES
AS OF APRIL 30, 2000
United States 5.2%
Finland 1.2%
United Kingdom 1.8%
Row: 1, Col: 1, Value: 1.2
Row: 1, Col: 2, Value: 0.5
Row: 1, Col: 3, Value: 85.59999999999999
Row: 1, Col: 4, Value: 1.3
Row: 1, Col: 5, Value: 2.1
Row: 1, Col: 6, Value: 1.3
Row: 1, Col: 7, Value: 1.0
Row: 1, Col: 8, Value: 1.8
Row: 1, Col: 9, Value: 5.2
France 0.5%
Switzerland 1.0%
Spain 1.3%
Netherlands 2.1%
Luxembourg 1.3%
Germany 85.6%
GEOGRAPHIC DIVERSIFICATION (%
OF FUND'S NET ASSETS)
AS OF OCTOBER 31, 1999
United States 2.6%
United Kingdom 1.5%
Switzerland 2.5%
France 3.2%
Row: 1, Col: 1, Value: 3.2
Row: 1, Col: 2, Value: 87.7
Row: 1, Col: 3, Value: 1.0
Row: 1, Col: 4, Value: 1.5
Row: 1, Col: 5, Value: 2.5
Row: 1, Col: 6, Value: 1.5
Row: 1, Col: 7, Value: 2.6
Netherlands 1.5%
Luxembourg 1.0%
Germany 87.7%
<TABLE>
<CAPTION>
<S> <C> <C>
ASSET ALLOCATION
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Stocks 97.8 97.4
Short-Term Investments and 2.2 2.6
Net Other Assets
TOP TEN STOCKS BY ISSUER AS
OF APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Allianz AG (Insurance) 9.1 7.8
Deutsche Telekom AG 8.6 9.8
(Telephone Services)
Siemens AG (Electrical 7.5 6.8
Equipment)
DaimlerChrysler AG (Autos, 5.3 4.9
Tires, & Accessories)
Munich Reinsurance AG 5.1 5.1
(Insurance)
SAP AG (Computer Services & 5.1 2.4
Software)
BASF AG (Chemicals & Plastics) 4.9 5.3
Veba AG (Electric Utility) 4.8 3.7
Deutsche Bank AG (Banks) 3.2 2.5
Marschollek Lautenschlaeger 3.0 2.8
und Partner AG (Insurance)
56.6 51.1
TOP TEN MARKET SECTORS AS OF
APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Finance 22.1 22.9
Technology 19.7 6.2
Utilities 16.5 25.7
Industrial Machinery & 10.3 10.7
Equipment
Basic Industries 9.1 11.7
Durables 9.0 9.8
Health 4.4 1.8
Media & Leisure 2.0 2.6
Transportation 1.8 0.3
Nondurables 1.2 1.2
</TABLE>
GERMANY
INVESTMENTS APRIL 30, 2000 (UNAUDITED)
Showing Percentage of Net Assets
COMMON STOCKS - 91.6%
SHARES VALUE (NOTE 1)
BASIC INDUSTRIES - 8.2%
CHEMICALS & PLASTICS - 8.2%
BASF AG 61,839 $ 2,710,504
Beiersdorf AG 10,740 701,869
Celanese AG 43,660 859,946
Rhodia SA 14,947 277,918
4,550,237
DURABLES - 7.9%
AUTOS, TIRES, & ACCESSORIES -
7.0%
Bayerische Motoren Werke 33,820 912,427
(BMW) AG
DaimlerChrysler AG (Reg.) 51,048 2,938,450
3,850,877
TEXTILES & APPAREL - 0.9%
Hugo Boss AG 3,978 507,605
TOTAL DURABLES 4,358,482
FINANCE - 19.1%
BANKS - 4.5%
Deutsche Bank AG 26,353 1,775,037
Dresdner Bank AG 17,606 727,089
2,502,126
INSURANCE - 14.6%
Allianz AG (Reg.) 13,019 5,022,951
Hannover Rueckversicherungs AG 3,800 240,714
Munich Reinsurance AG (Reg.) 9,662 2,840,074
8,103,739
TOTAL FINANCE 10,605,865
HEALTH - 4.4%
DRUGS & PHARMACEUTICALS - 2.2%
Altana AG 5,330 386,213
Schering AG 5,840 827,706
1,213,919
MEDICAL FACILITIES MANAGEMENT
- 2.2%
Fresenius Medical Care AG 16,416 1,238,136
TOTAL HEALTH 2,452,055
INDUSTRIAL MACHINERY &
EQUIPMENT - 10.3%
ELECTRICAL EQUIPMENT - 7.5%
Siemens AG 27,796 4,129,550
INDUSTRIAL MACHINERY &
EQUIPMENT - 2.8%
Aixtron AG 1,285 331,453
Elexis AG 1,320 9,673
SHARES VALUE (NOTE 1)
Heidelberger Druckmaschinen AG 17,813 $ 970,892
Linde AG 6,730 264,869
1,576,887
TOTAL INDUSTRIAL MACHINERY & 5,706,437
EQUIPMENT
MEDIA & LEISURE - 2.0%
BROADCASTING - 2.0%
Audiofina 3,965 489,683
Primacom AG (a) 4,757 366,372
Societe Europeen Des 1,590 242,198
Satellite unit
1,098,253
RETAIL & WHOLESALE - 0.8%
GENERAL MERCHANDISE STORES -
0.8%
Metro AG 10,495 409,411
SERVICES - 0.9%
ADVERTISING - 0.5%
United Internet AG (a) 1,020 263,099
LEASING & RENTAL - 0.4%
Apcoa Parking AG 3,457 252,071
TOTAL SERVICES 515,170
TECHNOLOGY - 19.7%
COMMUNICATIONS EQUIPMENT - 1.2%
Nokia AB 12,120 689,325
COMPUTER SERVICES & SOFTWARE
- 12.5%
Equant NV (a) 14,680 1,139,314
I-D Media AG 4,775 359,054
Intershop Communication AG (a) 1,517 676,084
Jobs & Adverts AG (a) 241 5,052
LHS Group, Inc. (a) 17,430 692,843
MIS AG (a) 1,260 175,560
Poet Holdings, Inc. (a) 2,720 173,540
SAP AG 5,973 2,803,707
Software AG (a) 3,510 406,297
T-Online International AG 3,900 147,518
Telesens AG (a) 8,280 352,436
6,931,405
COMPUTERS & OFFICE EQUIPMENT
- 1.4%
SCM Microsystems, Inc. (a) 9,410 779,197
ELECTRONIC INSTRUMENTS - 1.0%
Kudelski SA (a) 52 536,638
ELECTRONICS - 3.6%
ELMOS Semiconductor AG 7,695 315,612
Epcos AG 6,025 851,180
Muehlbauer Holding AG & Co. 12,905 817,477
1,984,269
TOTAL TECHNOLOGY 10,920,834
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
TRANSPORTATION - 1.8%
AIR TRANSPORTATION - 1.6%
Deutsche Lufthansa AG (Reg.) 42,295 $ 880,862
TRUCKING & FREIGHT - 0.2%
Stinnes AG 6,011 128,750
TOTAL TRANSPORTATION 1,009,612
UTILITIES - 16.5%
CELLULAR - 1.4%
Vodafone AirTouch PLC 165,852 779,505
ELECTRIC UTILITY - 4.8%
Veba AG 53,055 2,669,305
TELEPHONE SERVICES - 10.3%
Deutsche Telekom AG 73,569 4,787,018
Jazztel PLC sponsored ADR 3,630 188,760
Telefonica SA (a) 32,100 716,225
5,692,003
TOTAL UTILITIES 9,140,813
TOTAL COMMON STOCKS 50,767,169
(Cost $46,589,715)
NONCONVERTIBLE PREFERRED
STOCKS - 6.2%
BASIC INDUSTRIES - 0.9%
CHEMICALS & PLASTICS - 0.9%
Henkel Kgaa 8,280 482,996
DURABLES - 1.1%
AUTOS, TIRES, & ACCESSORIES -
1.1%
Porsche AG (non-vtg.) 241 615,266
FINANCE - 3.0%
INSURANCE - 3.0%
Marschollek Lautenschlaeger 3,089 1,645,501
und Partner AG
NONDURABLES - 1.2%
HOUSEHOLD PRODUCTS - 1.2%
Wella AG 26,949 687,755
TOTAL NONCONVERTIBLE 3,431,518
PREFERRED STOCKS
(Cost $2,395,517)
CASH EQUIVALENTS - 14.0%
SHARES VALUE (NOTE 1)
Central Cash Collateral Fund, 6,194,532 $ 6,194,532
5.94% (b)
Taxable Central Cash Fund, 1,596,879 1,596,879
5.77% (b)
TOTAL CASH EQUIVALENTS 7,791,411
(Cost $7,791,411)
TOTAL INVESTMENT PORTFOLIO - 61,990,098
111.8%
(Cost $56,776,643)
NET OTHER ASSETS - (11.8)% (6,564,879)
NET ASSETS - 100% $ 55,425,219
LEGEND
(a) Non-income producing
(b) The rate quoted is the annualized seven-day yield of the fund at
period end.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $60,149,935 and $32,785,300, respectively.
The fund placed a portion of its portfolio transactions with brokerage
firms which are affiliates of Fidelity Management & Research Company.
The commissions paid to these affiliated firms were $48 for the
period.
The fund participated in the security lending program. At period end,
the value of securities loaned amounted to $5,848,886. The fund
received cash collateral of $6,194,532 which was invested in cash
equivalents.
INCOME TAX INFORMATION
At April 30, 2000, the aggregate cost of investment securities for
income tax purposes was $57,417,950. Net unrealized appreciation
aggregated $4,572,148, of which $9,106,724 related to appreciated
investment securities and $4,534,576 related to depreciated investment
securities.
At October 31, 1999, the fund had a capital loss carryforward of
approximately $5,231,000 of which $2,136,000 and $3,095,000 will
expire on October 31, 2006 and 2007, respectively.
GERMANY
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000 (UNAUDITED)
ASSETS
Investment in securities, at $ 61,990,098
value (cost $56,776,643) -
See accompanying schedule
Receivable for fund shares 626
sold
Dividends receivable 97,535
Interest receivable 2,725
Redemption fees receivable 3,160
Other receivables 22,040
TOTAL ASSETS 62,116,184
LIABILITIES
Payable for fund shares $ 407,903
redeemed
Accrued management fee 35,713
Other payables and accrued 52,817
expenses
Collateral on securities 6,194,532
loaned, at value
TOTAL LIABILITIES 6,690,965
NET ASSETS $ 55,425,219
Net Assets consist of:
Paid in capital $ 52,588,600
Accumulated net investment (35,646)
loss
Accumulated undistributed net (2,334,977)
realized gain (loss) on
investments and foreign
currency transactions
Net unrealized appreciation 5,207,242
(depreciation) on
investments and assets and
liabilities in foreign
currencies
NET ASSETS, for 2,865,442 $ 55,425,219
shares outstanding
NET ASSET VALUE and $19.34
redemption price per share
($55,425,219 (divided by)
2,865,442 shares)
Maximum offering price per $19.94
share (100/97.00 of $19.34)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30,
2000 (UNAUDITED)
INVESTMENT INCOME $ 235,487
Dividends
Interest 58,409
Security lending 23,594
317,490
Less foreign taxes withheld (23,859)
TOTAL INCOME 293,631
EXPENSES
Management fee $ 151,934
Transfer agent fees 63,049
Accounting and security 30,057
lending fees
Non-interested trustees' 53
compensation
Custodian fees and expenses 50,836
Registration fees 25,996
Audit 10,136
Legal 346
Miscellaneous 27
Total expenses before 332,434
reductions
Expense reductions (3,157) 329,277
NET INVESTMENT INCOME (LOSS) (35,646)
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities 3,103,357
Foreign currency transactions (373) 3,102,984
Change in net unrealized
appreciation (depreciation)
on:
Investment securities 1,369,119
Assets and liabilities in (5,745) 1,363,374
foreign currencies
NET GAIN (LOSS) 4,466,358
NET INCREASE (DECREASE) IN $ 4,430,712
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION Sales $ 118,239
charges paid to FDC
Sales charges - Retained by $ 118,239
FDC
Expense reductions Directed $ 3,085
brokerage arrangements
Transfer agent credits 72
$ 3,157
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
INCREASE (DECREASE) IN NET SIX MONTHS ENDED APRIL 30, YEAR ENDED OCTOBER 31, 1999
ASSETS 2000 (UNAUDITED)
Operations Net investment $ (35,646) $ (84,631)
income (loss)
Net realized gain (loss) 3,102,984 (2,185,371)
Change in net unrealized 1,363,374 2,397,952
appreciation (depreciation)
NET INCREASE (DECREASE) IN 4,430,712 127,950
NET ASSETS RESULTING FROM
OPERATIONS
Share transactions Net 53,205,181 17,443,225
proceeds from sales of shares
Cost of shares redeemed (25,369,403) (29,483,918)
NET INCREASE (DECREASE) IN 27,835,778 (12,040,693)
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
Redemption fees 199,592 76,837
TOTAL INCREASE (DECREASE) 32,466,082 (11,835,906)
IN NET ASSETS
NET ASSETS
Beginning of period 22,959,137 34,795,043
End of period (including $ 55,425,219 $ 22,959,137
accumulated net investment
loss of $35,646 and $0,
respectively)
OTHER INFORMATION
Shares
Sold 2,610,909 1,168,030
Redeemed (1,277,848) (1,987,640)
Net increase (decrease) 1,333,061 (819,610)
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SIX MONTHS ENDED APRIL 30, 2000 YEARS ENDED OCTOBER 31,
SELECTED PER-SHARE DATA (UNAUDITED) 1999 1998 1997 1996 F
Net asset value, beginning of $ 14.98 $ 14.79 $ 13.24 $ 11.34 $ 10.00
period
Income from Investment
Operations
Net investment income (loss) (.02) D (.05) D .03 D, E (.02) D .01
Net realized and unrealized 4.29 .19 2.65 2.21 1.31
gain (loss)
Total from investment 4.27 .14 2.68 2.19 1.32
operations
Less Distributions
From net investment income - - (.01) (.01) -
From net realized gain - - (1.24) (.35) -
Total distributions - - (1.25) (.36) -
Redemption fees added to paid .09 .05 .12 .07 .02
in capital
Net asset value, end of period $ 19.34 $ 14.98 $ 14.79 $ 13.24 $ 11.34
TOTAL RETURN B, C 29.11% 1.28% 22.81% 20.47% 13.40%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 55,425 $ 22,959 $ 34,795 $ 12,732 $ 7,178
(000 omitted)
Ratio of expenses to average 1.61% A 1.90% 1.76% 2.00% G 2.00% G
net assets
Ratio of expenses to average 1.60% A, H 1.79% H 1.74% H 2.00% 2.00%
net assets after expense
reductions
Ratio of net investment (.17)% A (.34)% .20% (.18)% .12%
income (loss) to average net
assets
Portfolio turnover rate 166% A 132% 139% 120% 133%
A ANNUALIZED
B THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
D NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
E INVESTMENT INCOME PER SHARE
REFLECTS A SPECIAL DIVIDEND
WHICH AMOUNTED TO $.08 PER
SHARE.
F FOR THE PERIOD NOVEMBER 1,
1995 (COMMENCEMENT OF
OPERATIONS) TO OCTOBER 31,
1996.
G FMR AGREED TO REIMBURSE A
PORTION OF THE FUND'S
EXPENSES DURING THE PERIOD.
WITHOUT THIS REIMBURSEMENT,
THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
H FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
</TABLE>
UNITED KINGDOM
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value). If Fidelity had not reimbursed certain fund
expenses, the total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1994 PAST 6 MONTHS PAST 1 YEAR LIFE OF FUND
FIDELITY UNITED KINGDOM 4.14% -1.25% 80.99%
FIDELITY UNITED KINGDOM 1.02% -4.22% 75.56%
(INCL. 3.00% SALES CHARGE)
FT-All-Shares -0.30% -1.48% 98.28%
European Region Funds Average 21.51% 25.29% n/a
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year or since
the fund started on November 1, 1995. For example, if you had invested
$1,000 in a fund that had a 5% return over the past year, the value of
your investment would be $1,050. You can compare the fund's returns to
the performance of the FT-All-Shares Index - a market
capitalization-weighted index of over 750 stocks traded in the U.K.
market. To measure how the fund's performance stacked up against its
peers, you can compare the fund's performance to the European region
funds average, which reflects the performance of mutual funds with
similar objectives tracked by Lipper Inc. The past six months average
represents a peer group of 161 mutual funds. These benchmarks include
reinvested dividends and capital gains, if any, and exclude the effect
of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1994 PAST 1 YEAR LIFE OF FUND
FIDELITY UNITED KINGDOM -1.25% 14.10%
FIDELITY UNITED KINGDOM -4.22% 13.33%
(INCL. 3.00% SALES CHARGE)
FT-All-Shares -1.48% 16.43%
European Region Funds Average 25.29% n/a
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
United Kingdom FTSE Actuaries All Shares
00344 FT001
1995/11/01 9700.00 10000.00
1995/11/30 9573.90 10045.63
1995/12/31 9778.19 10332.30
1996/01/31 9729.49 10310.34
1996/02/29 9963.23 10460.66
1996/03/31 10099.58 10580.27
1996/04/30 10411.24 10783.02
1996/05/31 10722.89 10999.14
1996/06/30 10596.28 10897.13
1996/07/31 10430.72 10838.63
1996/08/31 10927.42 11423.97
1996/09/30 11005.33 11641.61
1996/10/31 11579.95 12221.95
1996/11/30 12183.78 12823.08
1996/12/31 12575.73 13285.32
1997/01/31 12205.27 12911.20
1997/02/28 12555.71 13299.67
1997/03/31 12565.72 13420.62
1997/04/30 12665.85 13546.04
1997/05/31 13016.28 14119.45
1997/06/30 13216.53 14307.89
1997/07/31 13526.92 14788.25
1997/08/31 13366.72 14587.42
1997/09/30 14408.03 15706.71
1997/10/31 14227.80 15250.76
1997/11/30 14347.95 15309.01
1997/12/31 14686.21 15781.29
1998/01/31 15115.63 16509.20
1998/02/28 16103.30 17613.50
1998/03/31 17037.29 18678.26
1998/04/30 17048.02 18737.66
1998/05/31 16919.20 18390.36
1998/06/30 16790.37 18462.12
1998/07/31 16146.24 18059.16
1998/08/31 13902.51 16565.85
1998/09/30 14428.55 16189.75
1998/10/31 14986.80 17067.41
1998/11/30 15684.61 17671.51
1998/12/31 16201.58 18175.13
1999/01/31 16109.46 18101.10
1999/02/28 16512.48 18527.57
1999/03/31 17088.23 19246.07
1999/04/30 17779.13 20125.69
1999/05/31 16903.99 19140.07
1999/06/30 16834.90 19232.10
1999/07/31 17111.26 19639.91
1999/08/31 17088.23 19666.90
1999/09/30 16719.75 19405.59
1999/10/31 16857.93 19887.49
1999/11/30 17341.56 20544.83
1999/12/31 18590.27 21865.39
2000/01/31 17544.57 20195.89
2000/02/29 17242.48 19806.98
2000/03/31 18206.85 20900.73
2000/04/28 17556.19 19827.88
IMATRL PRASUN SHR__CHT 20000430 20000519 114431 R00000000000057
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity United Kingdom Fund on November 1, 1995, when the
fund started, and the current 3.00% sales charge was paid. As the
chart shows, by April 30, 2000, the value of the investment would have
grown to $17,556 - a 75.56% increase on the initial investment. For
comparison, look at how the FT-All-Shares Index did over the same
period. With dividends and capital gains, if any, reinvested, the same
$10,000 would have grown to $19,828 - a 98.28% increase.
UNDERSTANDING PERFORMANCE
Many markets around the globe offer the
potential for significant growth over time; however,
investing in foreign markets means assuming greater
risks than investing in the United States. Factors like
changes in a country's financial markets, its local
political and economic climate, and the fluctuating
value of its currency create these risks. For these
reasons an international fund's performance may
be more volatile than a fund that invests exclusively
in the United States. Past performance is no
guarantee of future results and you may have a
gain or loss when you sell your shares.
(checkmark)
UNITED KINGDOM
FUND TALK: THE MANAGER'S OVERVIEW
(portfolio manager photograph)
An interview with Frederic Gautier, Portfolio Manager of Fidelity
United Kingdom Fund
Q. HOW DID THE FUND PERFORM, FREDERIC?
A. For the six months that ended April 30, 2000, the fund delivered a
total return of 4.14%, outpacing the FT-All-Shares Index, which
returned -0.30%. The European region funds average tracked by Lipper
Inc. returned 21.51% during this same time frame. For the 12 months
that ended April 30, 2000, the fund returned -1.25%, while the
FT-All-Shares Index and Lipper average posted returns of -1.48% and
25.29%, respectively.
Q. WHAT FACTORS HELPED THE FUND BEAT ITS BENCHMARK DURING THE
SIX-MONTH PERIOD?
A. Favorable positioning within the hot technology and media sectors
helped us garner an edge over the index during the period.
Specifically, the fund's overweighting in software and computer
services, including names such as Autonomy and Sage, proved
particularly beneficial to performance. I sold off the fund's position
in Autonomy prior to the end of the period. Our overexposure to
Informa - a global provider of business information and education
through electronic channels - also helped. In terms of media, our
stakes in Capital Radio and Carlton Communications provided additional
returns, riding a period of strong Internet-related advertising
spending in the U.K. The fund's limited exposure to poorly performing
paper and mining stocks further boosted performance relative to the
index. From a competitive standpoint, the fund lagged its Lipper
peers, a group that's generally more reflective of investment activity
across European markets overall.
Q. HOW DID THE FUND'S HOLDINGS IN TELECOMMUNICATIONS FARE?
A. Having an underweighted exposure to telecom providers worked to our
advantage, as much of the industry fell prey to the sell-off that
shook most new economy stocks late in the period. The fund's top
holding, Vodafone AirTouch, was no exception, dipping further on
digestion problems related to recent acquisitions and an uncertain
revenue picture surrounding the impending roll-out of Web-enabled cell
phones. Vodafone's takeover of German telecom operator Mannesmann in
February resulted in the fund owning fewer shares of the combined
entity than the index, which was a plus given its lackluster
performance. The fund's stake in British Telecommunications didn't
help much, as the company faced the prospect of having to open up its
local service lines to competition sooner than expected.
Q. WHAT WERE SOME OF YOUR OTHER STRATEGIES AND HOW DID THEY PLAY OUT
FOR THE FUND?
A. I was a bit bearish on industrials in general given the strength of
the sterling, but one name I did own, FKI - an electrical engineering
concern - performed nicely for us. I took some profits in tech toward
the end of the period, as investors fled high-growth areas of the
market for safer havens elsewhere. The decision to remain overweighted
in defensive electric utilities issues, such as Scottish & Southern
Energy and National Grid, provided gains while helping to reduce the
overall volatility of the portfolio. Similarly, our exposure to
recovering drug stocks Glaxo Wellcome and SmithKline Beecham also
helped, as did our limited exposure to a generally weak retail sector.
The retailers we did own, however, such as Tesco and Kingfisher,
provided additional returns.
Q. WHAT OTHER STOCKS CONTRIBUTED TO PERFORMANCE? WHICH DETRACTED?
A. Venture capital firm 3i benefited from a strong global portfolio of
investments in technology-related companies. Sage - a leading provider
of Web-enabled accounting software for smaller-sized businesses -
benefited from strong top-line growth and improving margins, along
with further expansion of its business both in the U.S. and Europe.
Reuters, a global financial information and news provider, rode
volatile U.S. equity markets higher during the first quarter of 2000 -
enjoying a sharp rise in revenues delivered by its Instinet electronic
broker. Investment management firm Amvescap also benefited from strong
market activity and improving fund performance. On the downside, bank
stocks such as Lloyds, Royal Bank of Scotland and National Westminster
wilted in the face of rising interest rates. The fund no longer held
National Westminster at the close of the period. Mortgage banker
Alliance & Leicester stumbled on margin pressures. South African
Breweries was felled by a weak local currency as well as overpaying
for an acquisition.
Q. WHAT'S YOUR OUTLOOK?
A. The market is still extremely volatile given the current valuation
levels of tech stocks and the potential for further interest-rate
hikes. I feel the fund is reasonably well-positioned at the moment to
respond to the various swings in the market. Since it would be foolish
to consider aggressive sector positioning in this environment, I
intend to stay relatively sector neutral, focusing my efforts instead
on finding the best stocks and adding value from the bottom up.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET OR OTHER CONDITIONS. FOR MORE INFORMATION, SEE PAGE 2.
NOTE TO SHAREHOLDERS: On January 20, 2000, the Board of Trustees of
Fidelity United Kingdom Fund voted to present a proposal to
shareholders to merge the fund into Fidelity Europe Fund. A
shareholder meeting is scheduled for July 19, 2000. If shareholders
approve the merger, it will occur on or about July 24, 2000.
FUND FACTS
GOAL: long-term growth of capital by investing
mainly in equity securities of British issuers
FUND NUMBER: 344
TRADING SYMBOL: FUTYF
START DATE: November 1, 1995
SIZE: as of April 30, 2000, more than
$3.9 million
MANAGER: Frederic Gautier, since 1998;
manager, various Fidelity funds through Fidelity
International Limited, since 1995; joined
Fidelity in 1994
(checkmark)
UNITED KINGDOM
INVESTMENT CHANGES
AS OF APRIL 30, 2000
France 0.3%
United States 1.2%
Ireland 3.8%
Row: 1, Col: 1, Value: 0.3
Row: 1, Col: 2, Value: 3.8
Row: 1, Col: 3, Value: 0.5
Row: 1, Col: 4, Value: 94.2
Row: 1, Col: 5, Value: 1.2
Row: 1, Col: 6, Value: 0.0
Row: 1, Col: 7, Value: 0.0
Row: 1, Col: 8, Value: 0.0
Row: 1, Col: 9, Value: 0.0
Row: 1, Col: 10, Value: 0.0
Luxembourg 0.5%
United Kingdom 94.2%
GEOGRAPHIC DIVERSIFICATION (%
OF FUND'S NET ASSETS)
AS OF OCTOBER 31, 1999
Ireland 5.7%
United States 0.7%
Row: 1, Col: 1, Value: 5.7
Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 93.59999999999999
Row: 1, Col: 4, Value: 0.7000000000000001
United Kingdom 93.6%
<TABLE>
<CAPTION>
<S> <C> <C>
ASSET ALLOCATION
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Stocks 98.8 99.3
Short-Term Investments and 1.2 0.7
Net Other Assets
TOP TEN STOCKS BY ISSUER AS
OF APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Vodafone AirTouch PLC 9.2 8.0
(Cellular)
BP Amoco PLC (Oil & Gas) 6.1 6.1
Glaxo Wellcome PLC (Drugs & 4.2 4.5
Pharmaceuticals)
Shell Transport & Trading Co. 3.8 3.8
PLC (Oil & Gas)
SmithKline Beecham PLC (Drugs 3.6 3.7
& Pharmaceuticals)
Royal Bank of Scotland Group 3.3 2.5
PLC (Banks)
Amvescap PLC (Securities 2.7 1.6
Industry)
British Telecommunications 2.7 5.0
PLC (Telephone Services)
Lloyds TSB Group PLC (Banks) 2.5 3.5
AstraZeneca Group PLC (Drugs 2.3 1.3
& Pharmaceuticals)
40.4 40.0
TOP TEN MARKET SECTORS AS OF
APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Finance 21.7 26.4
Utilities 19.3 17.1
Health 11.4 11.6
Energy 9.9 9.9
Media & Leisure 8.1 4.2
Technology 5.5 2.4
Retail & Wholesale 4.6 5.3
Services 4.4 3.5
Nondurables 3.6 6.2
Construction & Real Estate 2.8 3.4
</TABLE>
UNITED KINGDOM
INVESTMENTS APRIL 30, 2000 (UNAUDITED)
Showing Percentage of Net Assets
COMMON STOCKS - 98.8%
SHARES VALUE (NOTE 1)
AEROSPACE & DEFENSE - 1.6%
British Aerospace PLC 10,642 $ 65,137
BASIC INDUSTRIES - 1.7%
METALS & MINING - 1.1%
Johnson Matthey PLC 3,400 43,549
PAPER & FOREST PRODUCTS - 0.6%
Jefferson Smurfit Group PLC 9,530 20,431
Rexam PLC 1,100 4,191
24,622
TOTAL BASIC INDUSTRIES 68,171
CONSTRUCTION & REAL ESTATE -
2.8%
BUILDING MATERIALS - 0.9%
CRH PLC 2,190 35,111
CONSTRUCTION - 1.0%
George Wimpey PLC 11,990 21,502
Persimmon PLC 6,460 20,091
41,593
REAL ESTATE - 0.9%
Minerva PLC 9,832 34,367
TOTAL CONSTRUCTION & REAL 111,071
ESTATE
DURABLES - 0.7%
AUTOS, TIRES, & ACCESSORIES -
0.2%
Mayflower Corp. PLC 4,390 9,616
HOME FURNISHINGS - 0.5%
Carpetright PLC 2,880 19,843
TOTAL DURABLES 29,459
ENERGY - 9.9%
OIL & GAS - 9.9%
BP Amoco PLC 28,620 243,270
Shell Transport & Trading Co. 18,730 150,620
PLC (Reg.)
393,890
FINANCE - 21.7%
BANKS - 12.8%
Alliance & Leicester PLC 4,090 40,442
Bank of Ireland, Inc. 10,840 73,113
Barclays PLC 1,600 40,814
HSBC Holdings PLC (United 6,760 77,318
Kingdom) (Reg.)
Lloyds TSB Group PLC 10,280 100,291
Royal Bank of Scotland Group 8,503 131,632
PLC
Standard Chartered PLC 3,570 47,751
511,361
INSURANCE - 4.8%
Domestic & General Group PLC 2,850 23,554
SHARES VALUE (NOTE 1)
Hogg Robinson PLC 2,080 $ 7,917
Independent Insurance PLC 8,970 30,502
Irish Life & Permanent PLC 3,060 25,275
Norwich Union PLC 6,210 42,303
Prudential Corp. PLC 2,520 38,600
Royal & Sun Alliance 4,189 23,330
Insurance Group PLC
191,481
INVESTMENT COMPANIES - 0.7%
3i Group PLC 1,420 28,435
SECURITIES INDUSTRY - 3.4%
Amvescap PLC 7,560 109,047
Man (ED&F) Group PLC 3,740 28,847
137,894
TOTAL FINANCE 869,171
HEALTH - 11.4%
DRUGS & PHARMACEUTICALS - 10.1%
AstraZeneca Group PLC (United 2,170 91,411
Kingdom)
Glaxo Wellcome PLC 5,360 168,338
SmithKline Beecham PLC 10,370 142,587
402,336
MEDICAL EQUIPMENT & SUPPLIES
- 1.3%
Smith & Nephew PLC 8,060 23,164
SSL International PLC 2,893 29,325
52,489
TOTAL HEALTH 454,825
INDUSTRIAL MACHINERY &
EQUIPMENT - 1.2%
FKI PLC 12,090 45,875
MEDIA & LEISURE - 8.1%
BROADCASTING - 2.6%
Audiofina 170 20,995
Capital Radio PLC 1,010 23,143
Carlton Communications PLC 3,400 40,882
Telewest Communications PLC 3,300 20,006
(a)
105,026
ENTERTAINMENT - 1.5%
Granada Group PLC 6,330 61,559
LODGING & GAMING - 0.8%
Millennium & Copthorne Hotels 5,200 32,935
PLC
PUBLISHING - 2.2%
Daily Mail & General Trust 1,560 24,235
PLC Class A
EMAP PLC 1,480 28,487
Informa Group PLC 2,440 25,798
Trinity Mirror PLC 700 5,421
83,941
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
MEDIA & LEISURE - CONTINUED
RESTAURANTS - 1.0%
Enterprise Inns PLC 6,830 $ 39,577
TOTAL MEDIA & LEISURE 323,038
NONDURABLES - 3.6%
BEVERAGES - 1.0%
South African Breweries PLC 5,500 40,307
FOODS - 0.6%
Associated British Foods PLC 2,300 13,578
Bernard Matthews PLC 7,890 13,605
27,183
HOUSEHOLD PRODUCTS - 0.8%
Unilever PLC 4,880 30,348
TOBACCO - 1.2%
Gallaher Group PLC 9,300 45,871
TOTAL NONDURABLES 143,709
RETAIL & WHOLESALE - 4.6%
APPAREL STORES - 0.3%
Arcadia Group PLC 4,670 2,902
New Look Group PLC 4,740 9,131
12,033
GENERAL MERCHANDISE STORES -
0.8%
Kingfisher PLC 4,120 33,650
GROCERY STORES - 2.7%
Safeway PLC 8,860 29,799
Tesco PLC 22,760 77,433
107,232
RETAIL & WHOLESALE,
MISCELLANEOUS - 0.8%
Great Universal Stores PLC 4,950 29,798
Class A
TOTAL RETAIL & WHOLESALE 182,713
SERVICES - 4.4%
ADVERTISING - 1.6%
Aegis Group PLC 7,300 19,846
WPP Group PLC 2,800 44,977
64,823
SERVICES - 2.8%
Reuters Group PLC 3,580 63,902
Securicor PLC 9,050 18,031
Taylor Nelson Sofres PLC 8,290 31,913
113,846
TOTAL SERVICES 178,669
SHARES VALUE (NOTE 1)
TECHNOLOGY - 5.5%
COMMUNICATIONS EQUIPMENT - 1.9%
Filtronic PLC 1,050 $ 28,219
Marconi PLC 3,930 48,934
77,153
COMPUTER SERVICES & SOFTWARE
- 3.6%
Computacenter PLC 900 14,191
ILOG SA sponsored ADR (a) 300 10,800
MERANT PLC (a) 1,040 2,569
Misys PLC 1,200 13,665
Sage Group PLC 4,500 49,704
Sema Group PLC 2,350 37,675
Synstar PLC (a) 3,470 7,385
Triad Group PLC 2,200 8,886
144,875
TOTAL TECHNOLOGY 222,028
TRANSPORTATION - 2.3%
AIR TRANSPORTATION - 0.6%
BAA PLC 3,700 23,840
TRUCKING & FREIGHT - 1.7%
Exel PLC 6,880 37,355
Stagecoach Holdings PLC 15,690 15,356
TDG PLC 5,000 14,758
67,469
TOTAL TRANSPORTATION 91,309
UTILITIES - 19.3%
CELLULAR - 9.2%
Vodafone AirTouch PLC 78,090 367,025
ELECTRIC UTILITY - 3.0%
Independent Energy Holdings 660 24,607
PLC (a)
National Grid Group PLC 5,173 42,391
Scottish & Southern Energy PLC 6,430 54,090
121,088
TELEPHONE SERVICES - 6.2%
British Telecommunications PLC 5,840 106,872
Cable & Wireless PLC 4,900 80,917
Energis PLC (a) 1,180 58,092
245,881
WATER - 0.9%
Severn Trent PLC 3,670 37,144
TOTAL UTILITIES 771,138
TOTAL COMMON STOCKS 3,950,203
(Cost $3,484,832)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
NONCONVERTIBLE BONDS - 0.0%
MOODY'S RATINGS PRINCIPAL AMOUNT VALUE (NOTE 1)
AEROSPACE & DEFENSE - 0.0%
British Aerospace PLC 7.45% - GBP 1 $ 2
11/30/03 (Cost $0)
</TABLE>
CASH EQUIVALENTS - 1.2%
MATURITY AMOUNT
Investments in repurchase $ 49,023 49,000
agreements (U.S. Government
Obligations), in a joint
trading account at 5.69%,
dated 4/28/00 due 5/1/00
SHARES
Taxable Central Cash Fund, 233 233
5.77% (b)
TOTAL CASH EQUIVALENTS 49,233
(Cost $49,233)
TOTAL INVESTMENT PORTFOLIO - 3,999,438
100.0%
(Cost $3,534,065)
NET OTHER ASSETS - (0.0)% (299)
NET ASSETS - 100% $ 3,999,139
CURRENCY ABBREVIATIONS
GBP - British pound
LEGEND
(a) Non-income producing
(b) The rate quoted is the annualized seven-day yield of the fund at
period end.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $1,748,270 and $4,474,362, respectively.
INCOME TAX INFORMATION
At April 30, 2000, the aggregate cost of investment securities for
income tax purposes was $3,549,552. Net unrealized appreciation
aggregated $449,886, of which $827,045 related to appreciated
investment securities and $377,159 related to depreciated investment
securities.
At October 31, 1999 the fund had a capital loss carryforward of
approximately $2,000 all of which will expire on October 31, 2007.
UNITED KINGDOM
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000
ASSETS
Investment in securities, at $ 3,999,438
value (including repurchase
agreements of $49,000) (cost
$3,534,065) - See
accompanying schedule
Cash 1,392
Foreign currency held at 4,928
value (cost $4,928)
Receivable for investments 11,091
sold
Dividends receivable 24,474
Interest receivable 34
Receivable from investment 1,157
adviser for expense
reductions
TOTAL ASSETS 4,042,514
LIABILITIES
Payable for investments $ 8,862
purchased
Payable for fund shares 6,927
redeemed
Other payables and accrued 27,586
expenses
TOTAL LIABILITIES 43,375
NET ASSETS $ 3,999,139
Net Assets consist of:
Paid in capital $ 2,987,922
Undistributed net investment 1,035
income
Accumulated undistributed net 545,191
realized gain (loss) on
investments and foreign
currency transactions
Net unrealized appreciation 464,991
(depreciation) on
investments and assets and
liabilities in foreign
currencies
NET ASSETS, for 264,698 $ 3,999,139
shares outstanding
NET ASSET VALUE and $15.11
redemption price per share
($3,999,139 (divided by)
264,698 shares)
Maximum offering price per $15.58
share (100/97.00 of $15.11)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30,
2000
INVESTMENT INCOME $ 88,914
Dividends
Interest 1,692
90,606
Less foreign taxes withheld (6,154)
TOTAL INCOME 84,452
EXPENSES
Management fee $ 18,897
Transfer agent fees 8,990
Accounting fees and expenses 30,011
Non-interested trustees' 5
compensation
Custodian fees and expenses 39,502
Registration fees 8,515
Audit 10,087
Legal 101
Miscellaneous 7
Total expenses before 116,115
reductions
Expense reductions (65,977) 50,138
NET INVESTMENT INCOME 34,314
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities 571,442
Foreign currency transactions (1,193) 570,249
Change in net unrealized
appreciation (depreciation)
on:
Investment securities (278,293)
Assets and liabilities in (277) (278,570)
foreign currencies
NET GAIN (LOSS) 291,679
NET INCREASE (DECREASE) IN $ 325,993
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION Sales $ 2,644
charges paid to FDC
Sales charges - Retained by $ 2,644
FDC
Expense reductions $ 64,656
FMR reimbursement
Directed brokerage 163
arrangements
Custodian credits 1,158
$ 65,977
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
INCREASE (DECREASE) IN NET SIX MONTHS ENDED APRIL 30, YEAR ENDED OCTOBER 31, 1999
ASSETS 2000 (UNAUDITED)
Operations Net investment $ 34,314 $ 37,342
income
Net realized gain (loss) 570,249 61,046
Change in net unrealized (278,570) 703,633
appreciation (depreciation)
NET INCREASE (DECREASE) IN 325,993 802,021
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (60,129) (69,464)
From net investment income
From net realized gain - (411,822)
TOTAL DISTRIBUTIONS (60,129) (481,286)
Share transactions Net 912,402 1,697,930
proceeds from sales of shares
Reinvestment of distributions 57,571 460,462
Cost of shares redeemed (3,668,908) (2,968,242)
NET INCREASE (DECREASE) IN (2,698,935) (809,850)
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
Redemption fees 2,702 3,189
TOTAL INCREASE (DECREASE) (2,430,369) (485,926)
IN NET ASSETS
NET ASSETS
Beginning of period 6,429,508 6,915,434
End of period (including $ 3,999,139 $ 6,429,508
undistributed net investment
income of $1,035 and
$33,638, respectively)
OTHER INFORMATION
Shares
Sold 59,445 114,788
Issued in reinvestment of 3,712 34,466
distributions
Redeemed (237,648) (205,450)
Net increase (decrease) (174,491) (56,196)
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SIX MONTHS ENDED APRIL 30, 2000 YEARS ENDED OCTOBER 31,
SELECTED PER-SHARE DATA (UNAUDITED) 1999 1998 1997 1996 E
Net asset value, beginning of $ 14.64 $ 13.96 $ 14.21 $ 11.89 $ 10.00
period
Income from Investment
Operations
Net investment income .10 D .08 D .19 D .31 D .16
Net realized and unrealized .50 1.56 .46 2.31 1.75
gain (loss)
Total from investment .60 1.64 .65 2.62 1.91
operations
Less Distributions
From net investment income (.14) (.14) (.19) (.13) (.04)
From net realized gain - (.83) (.80) (.20) -
Total distributions (.14) (.97) (.99) (.33) (.04)
Redemption fees added to paid .01 .01 .09 .03 .02
in capital
Net asset value, end of period $ 15.11 $ 14.64 $ 13.96 $ 14.21 $ 11.89
TOTAL RETURN B, C 4.14% 12.49% 5.33% 22.87% 19.38%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 3,999 $ 6,430 $ 6,915 $ 5,709 $ 2,656
(000 omitted)
Ratio of expenses to average 2.00% A, F 2.00% F 2.02% F 2.00% F 2.00% F
net assets
Ratio of expenses to average 1.95% A, G 1.98% G 2.01% G 1.99% G 1.97% G
net assets after expense
reductions
Ratio of net investment 1.33% A .55% 1.26% 2.36% 1.62%
income to average net assets
Portfolio turnover rate 69% A 78% 191% 96% 50%
A ANNUALIZED
B THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
D NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES
OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD NOVEMBER 1,
1995 (COMMENCEMENT OF
OPERATIONS) TO OCTOBER 31,
1996.
F FMR AGREED TO REIMBURSE A
PORTION OF THE FUND'S
EXPENSES DURING THE PERIOD.
WITHOUT THIS REIMBURSEMENT,
THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
G FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
For the period ended April 30, 2000 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity France Fund, Fidelity Germany Fund, and Fidelity United
Kingdom Fund (the funds) are funds of Fidelity Investment Trust (the
trust). The trust is registered under the Investment Company Act of
1940, as amended (the 1940 Act), as an open-end management investment
company organized as a Massachusetts business trust. Each fund is
authorized to issue an unlimited number of shares. Effective the close
of business on April 19, 2000, the funds were closed to new accounts.
The financial statements have been prepared in conformity with
generally accepted accounting principles which require management to
make certain estimates and assumptions at the date of the financial
statements. The following summarizes the significant accounting
policies of the funds:
SECURITY VALUATION. Securities for which quotations are readily
available are valued using the official closing price or the last sale
price in the principal market in which they are traded. If the last
sale price (on the local exchange) is unavailable, the last evaluated
quote or closing bid price normally is used. If trading or events
occurring in other markets after the close of the principal market in
which securities are traded are expected to materially affect the
value of those securities, then they are valued at their fair value
taking this trading or these events into account. Fair value is
determined in good faith under consistently applied procedures under
the general supervision of the Board of Trustees. Securities for which
quotations are not readily available are valued primarily using
dealer-supplied valuations or at their fair value. Short-term
securities with remaining maturities of sixty days or less for which
quotations are not readily available are valued at amortized cost or
original cost plus accrued interest, both of which approximate current
value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the funds are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Purchases
and sales of securities, income receipts and expense payments are
translated into U.S. dollars at the prevailing exchange rate on the
respective dates of the transactions.
Net realized gains and losses on foreign currency transactions
represent net gains and losses from sales and maturities of foreign
currency contracts, disposition of foreign currencies, the difference
between the amount of net investment income accrued and the U.S.
dollar amount actually received, and gains and losses between trade
and settlement date on purchases and sales of securities. The effects
of changes in foreign currency exchange rates on investments in
securities are included with the net realized and unrealized gain or
loss on investment securities.
INCOME TAXES. As a qualified regulated investment company under
Subchapter M of the Internal Revenue Code, each fund is not subject to
U.S. federal income taxes to the extent that it distributes
substantially all of its taxable income for its fiscal year. Each fund
may be subject to foreign taxes on income and gains on investments
which are accrued based upon each fund's understanding of the tax
rules and regulations that exist in the markets in which they invest.
Foreign governments may also impose taxes on other payments or
transactions with respect to foreign securities. Each fund accrues
such taxes as applicable. The schedules of investments include
information regarding income taxes under the caption "Income Tax
Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend
date, except certain dividends from foreign securities where the
ex-dividend date may have passed, are recorded as soon as the funds
are informed of the ex-dividend date. Non-cash dividends included in
dividend income, if any, are recorded at the fair market value of the
securities received. Interest income is accrued as earned. Investment
income is recorded net of foreign taxes withheld where recovery of
such taxes is uncertain.
EXPENSES. Most expenses of the trust can be directly attributed to a
fund. Expenses which cannot be directly attributed are apportioned
among the funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date.
Income and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles. These differences, which may result in
distribution reclassifications, are primarily due to differing
treatments for foreign currency transactions, passive foreign
investment companies (PFIC), net operating losses, capital loss
carryforwards, and losses deferred due to wash sales. Certain funds
also utilized earnings and profits distributed to shareholders on
redemption of shares as a part of the dividends paid deduction for
income tax purposes.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital.
Undistributed net investment income, accumulated net investment loss
and accumulated undistributed net realized gain (loss) on investments
and foreign currency transactions may include temporary book and tax
basis differences which will reverse in a subsequent period. Any
taxable income or gain remaining at fiscal year end is distributed in
the following year.
SHORT-TERM TRADING (REDEMPTION) FEES. Shares held in Fidelity France
Fund, Fidelity Germany Fund, and Fidelity United Kingdom Fund less
than 90 days are subject to a short-term trading fee equal to 1.50% of
the proceeds of the redeemed shares. These fees, which are retained by
the funds, are accounted for as an addition to paid in capital.
SECURITY TRANSACTIONS. Security transactions are accounted for as of
trade date. Gains and losses on securities sold are determined on the
basis of identified cost.
2. OPERATING POLICIES.
FOREIGN CURRENCY CONTRACTS. Certain funds use foreign currency
contracts to facilitate transactions in foreign-denominated
securities. Losses may arise from changes in the value of the foreign
currency or if the counterparties do not perform under the contracts'
terms. The U.S. dollar value of foreign currency contracts is
determined using contractual currency exchange rates established at
the time of each trade.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission (the SEC) the funds, along with
other affiliated entities of Fidelity Management & Research Company
(FMR), may transfer uninvested cash balances into one or more joint
trading accounts. These balances are invested in one or more
repurchase agreements for U.S. Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury, Federal Agency,
or other obligations found to be satisfactory by FMR are transferred
to an account of the funds, or to the Joint Trading Account, at a bank
custodian. The securities are marked-to-market daily and maintained at
a value at least equal to the principal amount of the repurchase
agreement (including accrued interest). FMR, the funds' investment
adviser, is responsible for determining that the value of the
underlying securities remains in accordance with the market value
requirements stated above.
CENTRAL CASH FUNDS. Pursuant to an Exemptive Order issued by the SEC,
the funds may invest in the Taxable Central Cash Fund and the Central
Cash Collateral Fund (the Cash Funds) managed by Fidelity Investments
Money Management, Inc. (FIMM), an affiliate of FMR. The Cash Funds are
open-end money market funds available only to investment companies and
other accounts managed by FMR and its affiliates. The Cash Funds seek
preservation of capital, liquidity, and current income. Income
distributions from the Cash Funds are declared daily and paid monthly
from net interest income. Income distributions earned by the funds are
recorded as either interest income or security lending income in the
accompanying financial statements.
3. PURCHASES AND SALES OF INVESTMENTS.
Information regarding purchases and sales of securities (other than
short-term securities), is included under the caption "Other
Information" at the end of each applicable fund's schedule of
investments.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As each fund's investment adviser, FMR receives a
monthly fee that is calculated on the basis of a group fee rate plus a
fixed individual fund fee rate applied to the average net assets of
each fund. The group fee rate is the weighted average of a series of
rates and is based on the monthly average net assets of all the mutual
funds advised by FMR. The rates ranged from .2167% to .5200% for the
period. The annual individual fund fee rate is .45%. In the event that
these rates were lower than the contractual rates in effect during the
period, FMR voluntarily implemented the above rates, as they resulted
in the same or a lower management fee. For the period, each fund's
management fee was equivalent to the following annualized rates
expressed as a percentage of average net assets:
France .74%
Germany .74%
United Kingdom .73%
SUB-ADVISER FEE. FMR, on behalf of the funds, entered into
sub-advisory agreements with Fidelity Management & Research (U.K.)
Inc., Fidelity Management & Research (Far East) Inc., Fidelity
International Investment Advisors (FIIA). In addition, FIIA entered
into a sub-advisory agreement with its subsidiary, Fidelity
International Investment Advisors (U.K.) Limited (FIIA(U.K.)L). Under
the sub-advisory arrangements, FMR may receive investment advice and
research services and may grant the sub-advisers investment management
authority to buy and sell securities. FMR pays its sub-advisers either
a portion of its management fee or a fee based on costs incurred for
these services. FIIA pays FIIA(U.K.)L a fee based on costs incurred
for either service.
SALES LOAD. Fidelity Distributors Corporation (FDC), an affiliate of
FMR, is the general distributor of the fund. FDC receives a sales
charge of up to 3% for selling shares of each fund. The amounts
received and retained by FDC for sales charges are shown under the
caption "Other Information" on each fund's Statement of Operations.
TRANSFER AGENT FEES. Fidelity Service Company, Inc. (FSC), an
affiliate of FMR, is the funds' transfer, dividend disbursing and
shareholder servicing agent. FSC receives account fees and asset-based
fees that vary according to account size and type of account. FSC pays
for typesetting, printing and mailing of all shareholder reports,
except proxy statements. For the period, the transfer agent fees were
equivalent to the following annualized rates of the average net assets
of:
France .32%
Germany .31%
United Kingdom .35%
BROKERAGE COMMISSIONS. Certain funds placed a portion of their
portfolio transactions with brokerage firms which are affiliates of
FMR. The commissions paid to these affiliated firms are shown under
the caption "Other Information" at the end of each applicable fund's
schedule of investments.
ACCOUNTING AND SECURITY LENDING FEES. FSC maintains each fund's
accounting records and administers the security lending program. The
security lending fee is based on the number and duration of lending
transactions. The accounting fee is based on the level of average net
assets for the month plus out-of-pocket expenses.
5. SECURITY LENDING.
Certain funds lend portfolio securities from time to time in order to
earn additional income. Each applicable fund receives collateral (in
the form of U.S. Treasury obligations, letters of credit and/or cash)
against the loaned securities and maintains collateral in an amount
not less than 100% of the market value of the loaned securities during
the period of the loan. The market value of the loaned securities is
determined at the close of business of the funds and any additional
required collateral is delivered to the funds on the next business
day. If the borrower defaults on its obligation to return the
securities loaned because of insolvency or other reasons, a fund could
experience delays and costs in recovering the securities loaned or in
gaining access to the collateral. Information regarding the value of
securities loaned and the value of collateral at period end is
included under the caption "Other Information" at the end of each
applicable fund's schedule of investments.
6. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse each fund's operating expenses
(excluding interest, taxes, certain securities lending fees, brokerage
commissions and extraordinary expenses, if any) above an annual rate
of 2.00% of average net assets of the applicable funds.
FMR has directed certain portfolio trades to brokers who paid a
portion of certain funds' expenses.
In addition through arrangements with the certain fund's custodian and
transfer agent, credits realized as a result of uninvested cash
balances were used to reduce a portion of each applicable fund's
expenses.
For the period, the reductions under these arrangements are shown
under the caption "Other Information" on each applicable fund's
Statement of Operations.
7. PROPOSED REORGANIZATION.
The Board of Trustees of Fidelity France Fund, Fidelity Germany Fund
and Fidelity United Kingdom Fund has approved Agreements and Plans of
Reorganization ("Agreements") between each of these funds and Fidelity
Europe Fund ("Reorganizations"). The Agreements provide for the
transfer of all of the assets of each of these funds to Fidelity
Europe Fund in exchange solely for the number of shares of Fidelity
Europe Fund having the same aggregate net asset value as the
outstanding shares of each of these funds as of the close of business
of the New York Stock Exchange on the day that the Reorganizations are
effective. The Agreements also provide for the assumption by Fidelity
Europe Fund of all of the liabilities of each of these funds. A
Reorganization can be consummated only if, among other things, it is
approved by the vote of a majority (as defined by the 1940 Act) of
outstanding voting securities of the fund to which the Reorganization
relates. A Special Meeting of Shareholders ("Meeting") of Fidelity
France Fund, Fidelity Germany Fund, and Fidelity United Kingdom Fund
will be held on July 19, 2000 to vote on the Agreements. A detailed
description of the proposed transactions and voting information was
sent to shareholders of Fidelity France Fund, Fidelity Germany Fund,
and Fidelity United Kingdom Fund in May 2000. If the Agreements are
approved at the Meeting, the Reorganizations are expected to become
effective on or about July 24, 2000 (Fidelity United Kingdom Fund),
July 26, 2000 (Fidelity Germany Fund), and July 28, 2000 (Fidelity
France Fund).
Effective the close of business on April 19, 2000, shares of Fidelity
France Fund, Fidelity Germany Fund, and Fidelity United Kingdom Fund
are no longer available for purchase or exchange to new accounts of
these funds pending the proposed Reorganization, except through the
reinvestment of dividends and other distributions by shareholders of
the fund on April 19, 2000.
MANAGING YOUR INVESTMENTS
Fidelity offers several ways to conveniently manage your personal
investments via your telephone or PC. You can access your account
information, conduct trades and research your investments 24 hours a
day.
BY PHONE
Fidelity Automated Service Telephone provides a single toll-free
number to access account balances, positions, quotes and trading. It's
easy to navigate the service, and on your first call, the system will
help you create a personal identification number (PIN) for security.
(PHONE_GRAPHIC)
FIDELITY AUTOMATED SERVICE TELEPHONE (FAST(registered trademark))
1-800-544-5555
PRESS
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
BY PC
Fidelity's web site on the Internet provides a wide range of
information, including daily financial news, fund performance,
interactive planning tools and news about Fidelity products and
services.
(COMPUTER_GRAPHIC)
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BROADLY DIVERSIFIED INTERNATIONAL EQUITY
FUNDS
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SEMIANNUAL REPORT
APRIL 30, 2000
CONTENTS
MARKET RECAP 3 A REVIEW OF WHAT HAPPENED IN
WORLD MARKETS DURING THE
PAST SIX MONTHS.
GLOBAL BALANCED FUND 4 PERFORMANCE
5 FUND TALK: THE MANAGER'S
OVERVIEW
7 INVESTMENT CHANGES
8 INVESTMENTS
16 FINANCIAL STATEMENTS
INTERNATIONAL GROWTH & INCOME 18 PERFORMANCE
FUND 19 FUND TALK: THE MANAGER'S
OVERVIEW
21 INVESTMENT CHANGES
22 INVESTMENTS
27 FINANCIAL STATEMENTS
DIVERSIFIED INTERNATIONAL FUND 29 PERFORMANCE
30 FUND TALK: THE MANAGER'S
OVERVIEW
32 INVESTMENT CHANGES
33 INVESTMENTS
40 FINANCIAL STATEMENTS
AGGRESSIVE INTERNATIONAL FUND 42 PERFORMANCE
43 FUND TALK: THE MANAGER'S
OVERVIEW
45 INVESTMENT CHANGES
46 INVESTMENTS
48 FINANCIAL STATEMENTS
OVERSEAS FUND 50 PERFORMANCE
51 FUND TALK: THE MANAGER'S
OVERVIEW
53 INVESTMENT CHANGES
54 INVESTMENTS
58 FINANCIAL STATEMENTS
WORLDWIDE FUND 60 PERFORMANCE
61 FUND TALK: THE MANAGERS'
OVERVIEW
63 INVESTMENT CHANGES
64 INVESTMENTS
69 FINANCIAL STATEMENTS
NOTES TO FINANCIAL STATEMENTS 71 NOTES TO THE FINANCIAL
STATEMENTS
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MARKET RECAP
Stock markets around the world demonstrated remarkable parallels in
general performance during the six-month period ending April 30, 2000.
The first four months of the period were characterized by investors'
infatuation with new economy stocks - primarily technology and
communications issues - at the expense of nearly every other segment
of the market. In March and April, however, rising interest rates and
inflation fears in the U.S. helped spark a worldwide tech sell-off
that, for the most part, wiped out all of 2000's year-to-date gains.
EUROPE: New economy stocks lifted the Old World's equity markets for
most of the six months ending April 30, 2000. Europe entered the
period on an upbeat note. Its overall economy was improving, corporate
profits were rising, and its equity markets were enjoying the rapid
appreciation of Internet and wireless stocks. That backdrop lasted
through mid-March, when new economy stocks hit the wall. From that
point through the end of April, European equity markets fell in
conjunction with the rest of the world's. Overall, however, the
six-month period was a strong one given the 8.43% return of the Morgan
Stanley Capital International (MSCI) Europe Index.
EMERGING MARKETS: Traditionally among the most turbulent investment
opportunities, emerging markets were some of the strongest performers
during the past six months. Asian emerging markets performed very well
for the most part, but were among the first regions to fall victim to
volatile new economy stocks and U.S. inflation fears. South Korea and
Hong Kong were two of the stronger performers, while Taiwan, India and
Singapore all benefited from their well-developed technology
industries. For the period, the MSCI All Country Asia Free ex-Japan
Index returned 7.23%. Latin American emerging markets performed even
better, based on the 20.84% return of the MSCI Emerging Markets
Free-Latin America Index. Mexico, the largest country in the index,
was its top performer. European emerging markets also were solid.
Russia was a tremendous turnaround story, while the Turkish market
posted exceptional gains, boosted by an International Monetary Fund
loan and its European Union candidacy.
JAPAN AND THE FAR EAST: After gaining a stellar 75.89% in 1999, the
Tokyo Stock Exchange Index - a gauge of the Japanese market better
known as TOPIX - was down over 9% through the first four months of
2000. What changed? Japan's economy, the world's second largest,
slipped into a recession late last year, and investors began to shy
away from "New Japan" - akin to new economy - stocks on fears that
profit expectations would not be met and that the stocks were
overpriced. For the six months ending April 30, 2000, the TOPIX index
was up 2.10%. Conversely, Hong Kong and China maintained their
momentum from 1999, benefiting in part from fast-growing economies and
China's impending entry into the World Trade Organization. For the
period, the Hang Seng Index returned 16.77%.
U.S. AND CANADA: Record-setting equity market performance driven by
soaring telecommunications and technology stocks, a strong economy,
historically low levels of unemployment, and a Federal Reserve Board
trying to keep it all from spiraling out of control were just a few of
the contributing factors to U.S. stock market performance for the past
six months. And how this story ended was similar around the world -
with a steep, six-week plunge in new economy stocks that wiped out
most of the new year's gains. For the six-month period, the Standard &
Poor's 500SM Index returned 7.20%. The tech-heavy NASDAQ Composite
Index gained 30.28% - despite falling over 15% in the month of April -
while the Dow Jones Industrial Average gained 0.78%. The Canadian
equity market - traditionally driven by natural resources stocks -
also benefited from surging tech shares, which in 1999 helped the
Toronto Stock Exchange (TSE) 300 post its best performance of the
decade. Also, because the TSE 300 was a bit broader than most major
equity indexes, it didn't fall as much during the tech correction in
April. The TSE gained 28.83% during the past six months, one of the
best returns of any broad-based equity index in the world for that
time.
BONDS: Accelerating interest rates and compelling stock market returns
took their toll on U.S. fixed-income investments. However, many bonds
bounced back somewhat as a haven from turbulent equities in the later
stages of the six-months ending April 30. During this time, the U.S.
taxable bond market, as measured by the Lehman Brothers Aggregate Bond
Index, gained 1.42%. Treasuries were one of the strongest bond
segments in the U.S., sparked by the Treasury's plans to buy back
long-term debt and curtail future government debt auctions. For the
period, the Lehman Brothers Long Term Government Index returned 4.54%.
Government bonds internationally fared even worse, highlighted by the
Salomon Brothers Non-U.S. World Government Bond Index return of
-6.86%. For bonds, emerging markets were the place to be, as the JP
Morgan Emerging Markets Bond Index returned 12.43% for the past six
months.
Standard & Poor's 500 Index Morgan Stanley Capital International
Europe, Australasia, Far East Index
* YEAR TO DATE THROUGH APRIL 30, 2000.
Row: 1, Col: 1, Value: nil
Row: 1, Col: 2, Value: nil
Row: 2, Col: 1, Value: 6.1
Row: 2, Col: 2, Value: 7.38
Row: 3, Col: 1, Value: 31.57
Row: 3, Col: 2, Value: 56.16
Row: 4, Col: 1, Value: 18.56
Row: 4, Col: 2, Value: 69.44000000000001
Row: 5, Col: 1, Value: 5.1
Row: 5, Col: 2, Value: 24.63
Row: 6, Col: 1, Value: 16.61
Row: 6, Col: 2, Value: 28.27
Row: 7, Col: 1, Value: 31.69
Row: 7, Col: 2, Value: 10.53
Row: 8, Col: 1, Value: -3.1
Row: 8, Col: 2, Value: -23.45
Row: 9, Col: 1, Value: 30.47
Row: 9, Col: 2, Value: 12.13
Row: 10, Col: 1, Value: 7.619999999999999
Row: 10, Col: 2, Value: -12.17
Row: 11, Col: 1, Value: 10.08
Row: 11, Col: 2, Value: 32.56
Row: 12, Col: 1, Value: 1.32
Row: 12, Col: 2, Value: 7.78
Row: 13, Col: 1, Value: 37.58
Row: 13, Col: 2, Value: 11.21
Row: 14, Col: 1, Value: 22.96
Row: 14, Col: 2, Value: 6.05
Row: 15, Col: 1, Value: 32.11
Row: 15, Col: 2, Value: 4.819999999999999
Row: 16, Col: 1, Value: 28.58
Row: 16, Col: 2, Value: 20.27
Row: 17, Col: 1, Value: 12.03
Row: 17, Col: 2, Value: 12.79
Row: 18, Col: 1, Value: -0.78
Row: 18, Col: 2, Value: -5.3
%
GLOBAL BALANCED
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value).
CUMULATIVE TOTAL RETURNS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PERIODS ENDED OCTOBER 31, 1994 PAST 6 MONTHS PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
FIDELITY GLOBAL BALANCED 7.73% 14.69% 86.00% 132.32%
Fidelity Global Balanced 2.72% 6.03% 73.25% n/a
Composite
MSCI World 7.49% 12.29% 120.06% 205.18%
SB World Govt Bond -4.35% -3.47% 17.05% n/a
Global Flexible Portfolio 9.73% 13.48% 87.82% n/a
Funds Average
</TABLE>
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or since the fund started on February 1, 1993. For example, if
you had invested $1,000 in a fund that had a 5% return over the past
year, the value of your investment would be $1,050. You can compare
the fund's returns to the performance of the Fidelity Global Balanced
Composite Index - a hypothetical combination of unmanaged indices,
combining the total returns of the Morgan Stanley Capital
International World (MSCI) Index and the Salomon Brothers World
Government Bond Index using a weighting of 60% to 40%, respectively.
To measure how the fund's performance stacked up against its peers,
you can compare it to the global flexible portfolio funds average,
which reflects the performance of mutual funds with similar objectives
tracked by Lipper Inc. The past six months average represents a peer
group of 110 mutual funds. These benchmarks include reinvested
dividends and capital gains, if any, and exclude the effect of sales
charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1994 PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
FIDELITY GLOBAL BALANCED 14.69% 13.21% 12.34%
Fidelity Global Balanced 6.03% 11.62% n/a
Composite
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Global Bal MSCI World SB World Govt Global Comp
gb334_00 MS004 SB006 F0071
1993/02/26 10000.00 10000.00 10000.00 10000.00
1993/03/31 10639.77 10576.83 10153.51 10407.70
1993/04/30 11203.78 11064.11 10368.08 10783.23
1993/05/28 11423.65 11316.16 10472.05 10973.76
1993/06/30 11299.46 11218.32 10449.72 10907.61
1993/07/30 11501.06 11446.52 10479.38 11052.96
1993/08/31 12163.48 11968.39 10794.43 11488.39
1993/09/30 12102.98 11744.40 10922.48 11414.07
1993/10/29 12649.13 12065.21 10903.98 11593.38
1993/11/30 12502.84 11379.87 10825.83 11165.33
1993/12/31 13096.97 11933.93 10917.94 11529.46
1994/01/31 13743.86 12718.26 11005.86 12021.00
1994/02/28 13246.25 12550.86 10933.99 11894.82
1994/03/31 12368.06 12006.96 10918.29 11578.87
1994/04/29 12198.22 12375.31 10930.85 11797.10
1994/05/31 12398.03 12404.35 10834.90 11772.18
1994/06/30 11806.56 12367.06 10991.21 11818.76
1994/07/29 12027.25 12599.35 11078.78 11989.77
1994/08/31 12278.02 12975.91 11040.40 12187.99
1994/09/30 12247.93 12632.10 11120.30 12029.33
1994/10/31 12087.43 12988.52 11298.58 12309.97
1994/11/30 11746.38 12422.32 11143.33 11920.04
1994/12/30 11595.91 12539.70 11174.03 12000.97
1995/01/31 11284.95 12348.47 11408.49 11991.97
1995/02/28 11405.32 12525.49 11700.51 12217.92
1995/03/31 11726.32 13126.17 12395.51 12859.77
1995/04/28 11906.88 13580.59 12625.08 13222.05
1995/05/31 11916.91 13693.69 12980.25 13437.26
1995/06/30 11947.00 13686.40 13056.66 13464.69
1995/07/31 12438.52 14368.10 13087.36 13880.01
1995/08/31 12358.27 14044.91 12637.64 13501.69
1995/09/29 12538.83 14450.95 12919.89 13856.33
1995/10/31 12418.46 14220.32 13016.19 13764.66
1995/11/30 12649.17 14710.97 13163.42 14111.83
1995/12/29 12930.36 15137.97 13301.24 14416.87
1996/01/31 12940.43 15408.69 13136.91 14500.63
1996/02/29 12728.95 15499.36 13069.92 14522.24
1996/03/29 12799.44 15754.07 13051.78 14657.30
1996/04/30 13161.98 16121.28 12999.79 14838.84
1996/05/31 13182.12 16131.99 13002.58 14845.94
1996/06/28 13282.82 16210.32 13104.81 14936.11
1996/07/31 13000.85 15634.18 13356.01 14732.31
1996/08/30 13031.06 15810.64 13408.00 14855.05
1996/09/30 13330.51 16426.40 13462.42 15226.54
1996/10/31 13392.46 16537.82 13714.33 15402.41
1996/11/29 13991.35 17461.31 13895.05 15999.79
1996/12/31 13932.06 17178.39 13782.71 15792.40
1997/01/31 13900.78 17382.20 13414.28 15736.16
1997/02/28 14046.77 17578.87 13314.14 15795.77
1997/03/31 13994.63 17227.87 13212.62 15558.52
1997/04/30 14140.63 17787.72 13098.18 15807.74
1997/05/30 14901.89 18882.39 13452.66 16563.42
1997/06/30 15538.01 19820.92 13613.15 17136.22
1997/07/31 16111.56 20730.57 13507.08 17554.62
1997/08/29 15298.16 19340.53 13499.06 16844.15
1997/09/30 16099.75 20387.98 13786.55 17535.02
1997/10/31 15482.98 19311.64 14072.64 17125.48
1997/11/28 15525.52 19650.09 13856.67 17200.75
1997/12/31 15675.93 19886.29 13814.81 17304.16
1998/01/30 16008.10 20437.18 13949.13 17658.92
1998/02/27 16715.28 21816.33 14062.52 18431.13
1998/03/31 17176.02 22734.20 13923.31 18823.41
1998/04/30 17497.47 22952.95 14145.91 19052.56
1998/05/29 17390.32 22661.87 14179.05 18925.11
1998/06/30 17604.62 23196.25 14199.99 19204.23
1998/07/31 17808.20 23155.59 14218.83 19194.02
1998/08/31 15879.52 20064.26 14606.10 17865.38
1998/09/30 16298.56 20415.67 15382.74 18433.29
1998/10/30 17111.86 22257.74 15838.39 19649.46
1998/11/30 17773.35 23577.90 15614.75 20237.92
1998/12/31 18458.88 24726.22 15929.10 20992.02
1999/01/29 18818.89 25264.05 15782.92 21188.73
1999/02/26 18273.42 24588.40 15275.63 20576.67
1999/03/31 18906.17 25608.58 15314.35 21109.49
1999/04/30 19309.82 26614.51 15308.07 21603.63
1999/05/28 18764.34 25638.40 15080.94 21000.34
1999/06/30 19495.28 26830.62 14786.48 21439.26
1999/07/30 19658.92 26746.51 15148.98 21609.04
1999/08/31 19844.39 26695.33 15219.11 21623.99
1999/09/30 19874.38 26432.85 15456.35 21631.36
1999/10/29 20557.05 27803.20 15449.03 22299.89
1999/11/30 21118.59 28581.77 15287.14 22580.90
1999/12/31 22709.20 30891.67 15249.81 23654.18
2000/01/31 21832.31 29119.06 14924.64 22638.26
2000/02/29 22619.26 29194.10 14817.53 22608.07
2000/03/31 23271.31 31208.34 15276.32 23824.31
2000/04/28 22147.09 29885.20 14777.41 22906.64
</TABLE>
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Global Balanced Fund on February 28, 1993,
shortly after the fund started. As the chart shows, by April 30, 2000,
the value of the investment would have grown to $22,147 - a 121.47%
increase on the initial investment. For comparison, look at how both
the Morgan Stanley Capital International World Index and Salomon
Brothers World Government Bond Index did over the same period. With
dividends and capital gains, if any, reinvested, the same $10,000
investment in the Morgan Stanley Capital International World Index
would have grown to $29,885 - a 198.85% increase and the Salomon
Brothers World Government Bond Index would have grown to $14,777 - a
47.77% increase. You can also look at how the Fidelity Global Balanced
Composite Index did over the same period. The composite index combines
the total returns of the Morgan Stanley Capital International World
(MSCI) Index and the Salomon Brothers World Government Bond Index, and
assumes monthly rebalancing of the mix. With dividends and interest,
if any, reinvested, the same $10,000 would have grown to $22,907 - a
129.07% increase.
UNDERSTANDING PERFORMANCE
Many markets around the globe offer the
potential for significant growth over time;
however, investing in foreign markets means
assuming greater risks than investing in the
United States. Factors like changes in a
country's financial markets, its local political
and economic climate, and the fluctuating
value of its currency create these risks. For
these reasons an international fund's
performance may be more volatile than a fund
that invests exclusively in the United States.
Past performance is no guarantee of future
results and you may have a gain or loss when
you sell your shares.
(checkmark)
GLOBAL BALANCED
FUND TALK: THE MANAGER'S OVERVIEW
(PORTFOLIO MANAGER PHOTO)
An interview with
Rick Mace, Portfolio
Manager of Fidelity
Global Balanced Fund
Q. HOW DID THE FUND PERFORM, RICK?
A. For the six-month period that ended April 30, 2000, the fund
returned 7.73%. The fund typically compares its performance to three
measures: a bond index, an equity index and a peer group of competitor
funds. The fund's overall return topped that of its bond-oriented
benchmark - the Salomon Brothers World Government Bond Index - which
returned -4.35%. The fund also topped its equity-related benchmark -
the Morgan Stanley Capital International (MSCI) World Index - which
returned 7.49%. During the same period, the fund lagged the 9.73%
return for the global flexible portfolio funds average tracked by
Lipper Inc. For the 12 months that ended April 30, 2000, the fund
returned 14.69%. This performance beat the -3.47% return for the
Salomon Brothers Index, the 12.29% return for the MSCI World Index and
the 13.48% return for the average global flexible portfolio.
Q. WHAT WERE THE MAJOR FACTORS AFFECTING THE FUND'S PERFORMANCE DURING
THE SIX-MONTH PERIOD?
A. On the equity side, the fund's overweighting in Japanese stocks
relative to the index continued to be a major theme affecting
performance. Earlier in the period, performance relative to the index
was aided by superior returns from the fund's positions in Japanese
technology stocks - such as Kyocera - as well as the fund's exposure
to U.S. technology stocks - such as Cisco, EMC and Intel. Toward the
end of the period, a correction in the technology sector in many
countries reduced much of the performance achieved by these stocks,
particularly the fund's Japanese technology holdings. The fund also
benefited from strong stock selection in the telecommunications
industry, as holdings Nokia and Ericsson contributed positively to
performance due to increased demand globally for wireless
communications. On the bond side, the fund continued to be
overweighted in U.S. bonds and underweighted in Japanese bonds
relative to the index - a move that worked well for the majority of
the period. The fund held no Japanese bonds.
Q. THE FUND'S HOLDINGS IN THE TECHNOLOGY AND UTILITIES INDUSTRIES ROSE
SUBSTANTIALLY FROM THE PRIOR PERIOD. TO WHAT DO YOU ATTRIBUTE THIS
INCREASE?
A. Much of the increase in the fund's technology and utilities
weightings was due to a sharp rise in the stock prices of many of our
holdings in these sectors during the latter part of 1999, which
continued into the first quarter of 2000. Stocks of companies involved
in the expansion of the Internet, particularly data storage,
semiconductor and Internet-related infrastructure, achieved
substantial price appreciation during the period. As I previously
mentioned, robust consumer demand for wireless communications drove
the stock prices of Nokia and Ericsson higher as increases in revenues
fueled higher earnings for these companies. In turn, companies that
manufacture the internal electronic components for wireless handsets,
such as the fund's position in Kyocera, got a boost from this industry
growth as well.
Q. WHAT STOCKS DISAPPOINTED?
A. Ongoing negative developments in the U.S. government's antitrust
case against Microsoft hampered the fund's total return. Shares of
Microsoft fell roughly 22% during the period. The fund's position in
household products provider Procter & Gamble also detracted from
overall performance in response to a negative earnings announcement
that was due in part to higher operating costs as a result of rising
raw material prices. Shares of Bristol-Myers Squibb plunged 22% during
a single day in April after the company pulled its much-hyped
hypertension drug - Vanlev - for more clinical testing just prior to a
formal review from the U.S. Food and Drug Administration.
Q. WHAT HELPED THE FUND'S BOND COMPONENT OUTPERFORM THE SALOMON
BROTHERS INDEX?
A. While the fund's fixed-income component underperformed the equity
component, it managed to outperform the return of the bond benchmark
primarily for two reasons. First, my decision to keep the fund
overweighted in U.S. Treasury and agency bonds relative to the index
benefited the fund as government repurchases boosted the returns of
this group. Second, the fund's relative underweighting in Japanese
bonds improved performance relative to the Salomon Brothers benchmark.
Elsewhere, the fund's European fixed-income holdings detracted from
total performance as rising interest rates and a weakening euro eroded
returns to U.S. investors. We had a small reduction in the duration of
European bonds, which was due to effectively rolling down the yield
curve as the bonds aged.
Q. WHAT'S YOUR OUTLOOK, RICK?
A. The fund will remain positioned in a variety of different
industries and countries. Weightings by geographic markets and sectors
will continue to be a function of the stock selection process, which
utilizes a bottom-up methodology that incorporates quantitative
screening, in-depth fundamental research and extensive company visits.
I will continue to seek out stocks with low valuations relative to
estimated growth rates and to focus on bonds that offer high yields
relative to historic standards and relative to the cash flow yields of
equities. Going forward, I also expect to see more consolidation
activity throughout the world, as companies look to capitalize on
bigger economies of scale to improve earnings growth.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER AND DO NOT NECESSARILY REPRESENT THE VIEWS OF FIDELITY OR
ANY OTHER PERSON IN THE FIDELITY ORGANIZATION. ANY SUCH VIEWS ARE
SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS
AND FIDELITY DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE
VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS FOR A FIDELITY FUND ARE BASED ON NUMEROUS
FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON
BEHALF OF ANY FIDELITY FUND.
RICK MACE ON OVERSEAS INVESTING OPPORTUNITIES:
"Two important new trends in overseas investing helped fuel
the strong performance of international equities during the
past year - an increasing focus on maximizing shareholder
value and a significant global shift to equities as an investor's
major retirement savings vehicle. For U.S. investors, these
trends should make a compelling case for investing a portion
of your portfolio overseas.
"First, more company executives overseas are placing an
emphasis on getting the stock prices of their firms higher.
The increasing number of corporate announcements from
international companies detailing restructuring efforts and
mergers and acquisitions is evidence of this trend. Increased
competition from abroad has forced industry consolidation to
the forefront of corporate boardrooms. In the third quarter of
1999, Europe outpaced the U.S. in merger-and- acquisition
activity for the first time in seven years. Examples of this
global trend, which spans a broad number of sectors, include:
the U.K.-based Vodafone's $66 billion merger with U.S.-based
AirTouch; the U.K.-based Cable & Wireless PLC's bid to acquire
IDC, a Japanese telecom company; and Renault of France's
purchase of a 36.8% stake in Nissan. This increase in
merger- and-acquisition activity underscores a common
goal of many companies to improve the bottom line by
becoming a bigger presence globally and reducing costs
through economies of scale. What's more, compensation
packages for management teams are changing to better
reflect shareholders' interests.
"Second, it is likely that equities will begin to play a much
more prominent role in the future savings of European
investors. Compared to Americans, European investors
put a smaller percentage of retirement assets in equity
investments. In Japan, for instance, there is no retirement
savings equivalent to the U.S.' 401(k) plan. However,
Japanese investors historically have maintained among the
highest savings rates in the world, but have opted for lower
interest-yielding, government-sponsored savings accounts.
A number of recent factors - deregulation of the Japanese
financial services industry, limited funded private pension
systems and legislation to encourage new retirement vehicles
- should foster increased investment in equities going
forward and ultimately drive prices higher."
FUND FACTS
GOAL: seeks income and capital growth with
reasonable risk by investing in a broadly
diversified portfolio of high-yielding equity
and debt securities issued anywhere in the
world
FUND NUMBER: 334
TRADING SYMBOL: FGBLX
START DATE: February 1, 1993
SIZE: as of April 30, 2000, more than
$110 million
MANAGER: Richard Mace, since 1996;
manager, Fidelity Aggressive International
Fund, 1994-1999; Fidelity Overseas Fund,
since 1996; Group Leader, Fidelity
international funds, since 1996; joined Fidelity
in 1987
(checkmark)
GLOBAL BALANCED
INVESTMENT CHANGES
AS OF APRIL 30, 2000
France 7.1%
Row: 1, Col: 1, Value: 7.1
Row: 1, Col: 2, Value: 6.1
Row: 1, Col: 3, Value: 1.6
Row: 1, Col: 4, Value: 11.4
Row: 1, Col: 5, Value: 7.4
Row: 1, Col: 6, Value: 1.6
Row: 1, Col: 7, Value: 1.5
Row: 1, Col: 8, Value: 1.8
Row: 1, Col: 9, Value: 10.5
Row: 1, Col: 10, Value: 51.0
United States 51.0%
Germany 6.1%
Italy 1.6%
Japan 11.4%
Other 7.4%
Spain 1.6%
Sweden 1.5%
Switzerland 1.8%
United Kingdom 10.5%
GEOGRAPHIC DIVERSIFICATION (%
OF NET ASSETS)
AS OF OCTOBER 31, 1999
France 7.7%
Row: 1, Col: 1, Value: 7.7
Row: 1, Col: 2, Value: 7.0
Row: 1, Col: 3, Value: 1.9
Row: 1, Col: 4, Value: 11.3
Row: 1, Col: 5, Value: 2.1
Row: 1, Col: 6, Value: 5.9
Row: 1, Col: 7, Value: 2.2
Row: 1, Col: 8, Value: 2.1
Row: 1, Col: 9, Value: 11.4
Row: 1, Col: 10, Value: 48.4
United States 48.4%
Germany 7.0%
Italy 1.9%
Japan 11.3%
Netherlands 2.1%
Other 5.9%
Spain 2.2%
Switzerland 2.1%
United Kingdom 11.4%
<TABLE>
<CAPTION>
<S> <C> <C>
ASSET ALLOCATION
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Stocks 63.8 60.2
Bonds 27.9 33.2
Short-Term Investments and 8.3 6.6
Net Other Assets
TOP FIVE STOCKS BY ISSUER AS
OF APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Cisco Systems, Inc. (United 1.2 0.5
States of America)
General Electric Co. (United 1.2 1.2
States of America)
Intel Corp. (United States 1.1 0.3
of America)
Vodafone AirTouch PLC 0.9 0.8
(United Kingdom)
AT&T Corp. (United States of 0.9 0.6
America)
5.3 3.4
TOP FIVE BOND ISSUERS AS OF
APRIL 30, 2000
(WITH MATURITIES GREATER THAN % OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
ONE YEAR) MONTHS AGO
U.S. Treasury Obligations 8.3 9.2
Federal Home Loan Bank 4.4 5.1
United Kingdom, Great Britain 4.3 5.2
& Northern Ireland
French Government 3.3 4.4
Germany Federal Republic 2.7 3.7
23.0 27.6
TOP TEN MARKET SECTORS AS OF
APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Technology 16.3 10.3
Utilities 11.0 9.1
Finance 8.9 11.2
Health 4.4 5.4
Media & Leisure 3.6 2.5
Energy 3.5 3.4
Industrial Machinery & 3.5 3.4
Equipment
Retail & Wholesale 3.0 3.5
Nondurables 2.4 3.6
Basic Industries 2.2 2.2
</TABLE>
GLOBAL BALANCED
INVESTMENTS APRIL 30, 2000 (UNAUDITED)
Showing Percentage of Net Assets
COMMON STOCKS - 63.6%
SHARES VALUE (NOTE 1)
ARGENTINA - 0.0%
PC Holdings SA sponsored ADR 1,877 $ 28,742
(a)
AUSTRALIA - 0.7%
Amcor Ltd. 2,600 7,698
AMP Ltd. 4,500 39,417
Australia & New Zealand 2,438 16,856
Banking Group Ltd.
Australian Gas Light Co. 1,854 9,636
Brambles Industries Ltd. 800 22,517
Broken Hill Proprietary Co. 5,904 63,575
Ltd.
Cable & Wireless Optus Ltd. 9,800 31,647
(a)
Coles Myer Ltd. 2,300 8,612
Colonial Ltd. 2,639 13,624
Fosters Brewing Group Ltd. 5,600 14,147
Harvey Norman Holdings Ltd. 9,100 18,865
Lend Lease Corp. Ltd. 1,900 20,588
Macquarie Bank Ltd. 800 11,025
National Australia Bank Ltd. 6,900 94,526
News Corp. Ltd. 13,716 174,174
Paperlinx Ltd. (a) 867 1,562
Rio Tinto Ltd. 1,000 14,854
Southcorp Holdings Ltd. 2,800 8,733
Tabcorp Holdings Ltd. 1,500 8,029
Telstra Corp. Ltd. 20,400 87,438
Telstra Corp. Ltd. 5,800 14,835
(installment receipt) (f)
Wesfarmers Ltd. 1,300 9,048
Westfield Holdings Ltd. 2,700 14,742
Westpac Banking Corp. 3,300 21,062
WMC Ltd. 3,600 14,947
Woodside Petroleum Ltd. (a) 800 4,947
Woolworths Ltd. 3,800 12,786
759,890
BERMUDA - 0.1%
Ace Ltd. 4,000 95,750
BRAZIL - 0.4%
Aracruz Celulose SA sponsored 1,100 20,556
ADR
Banco Bradesco SA (PN) (a) 2,555,841 18,833
Banco Itau SA 284,000 21,241
Brahma Cervejaria 2,800 43,400
(Compagnie) sponsored ADR
Companhia Brasileira de 350 9,975
Distribuicao Grupo Pao de
Acucar sponsored ADR
Companhia Vale do Rio Doce:
(ON) 1,100 24,377
(PN-A) 1,000 24,765
Embratel Participacoes SA ADR 1,600 36,000
Lojas Americanas SA 600,000 2,240
Petrobras Distribuidora SA 307,000 3,575
Petrobras PN (Pfd. Reg.) 265,500 62,808
Tele Norte Leste 2,122 37,807
Participacoes SA ADR
SHARES VALUE (NOTE 1)
Tele Sudeste Celular 400 $ 17,100
Participacoes SA ADR
Telemig Celular Participacoes 350 20,475
SA ADR
Telesp Celular Participacoes 1,000 44,125
SA ADR
Votorantim Celulose e Papel 591,000 17,615
SA (PN Reg.)
404,892
BRITISH VIRGIN ISLANDS - 0.0%
El Sitio, Inc. 1,400 15,050
CANADA - 1.4%
Abitibi-Consolidated, Inc. 1,360 15,384
Air Canada (a) 926 9,724
Air Canada Class A (non-vtg.) 1,300 11,983
(a)
Alberta Energy Co. Ltd. 430 13,604
Alcan Aluminium Ltd. 370 12,043
Anderson Exploration Ltd. (a) 330 5,282
ATI Technologies, Inc. (a) 870 16,832
Bank of Montreal 230 8,349
Bank of Nova Scotia 1,140 25,983
Barrick Gold Corp. 890 14,966
BCE, Inc. 2,330 269,851
Bombardier, Inc. Class B 2,480 66,656
Bro-X Minerals Ltd. (a) 600 0
C-Mac Industries, Inc. (a) 150 7,597
Canada Occidental Petroleum 340 7,807
Ltd.
Canadian Imperial Bank of 970 25,416
Commerce
Canadian National Railway Co. 660 18,430
Canadian Natural Resources 750 20,006
Ltd. (a)
Canadian Pacific Ltd. 1,140 26,521
Celestica, Inc. (sub. vtg.) 755 40,738
(a)
Dofasco, Inc. 260 4,670
Domtar, Inc. 1,260 14,210
Enbridge, Inc. 1,030 22,258
Falconbridge Ltd. 850 12,542
Franco Nevada Mining Corp. 291 3,380
Ltd.
Imperial Oil Ltd. 320 7,499
Inco Ltd. (a) 300 4,710
Loblaw Companies Ltd. 310 8,311
Magna International, Inc. 590 27,452
Class A
Manulife Financial Corp. 1,740 27,320
Mitel Corp. (a) 360 9,019
National Bank of Canada 660 9,271
Newbridge Networks Corp. (a) 490 17,554
Nortel Networks Corp. 3,390 383,229
NOVA Chemicals Corp. 1,640 36,991
Petro-Canada 990 16,681
Placer Dome, Inc. 1,090 8,796
Potash Corp. of Saskatchewan 440 23,697
Quebecor World, Inc. 350 7,942
Rogers Communications, Inc. 310 8,070
Class B (non-vtg.) (a)
Royal Bank of Canada 1,300 61,365
Seagram Co. Ltd. 990 52,047
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
CANADA - CONTINUED
Shaw Communications, Inc. 520 $ 12,168
Class B
Suncor Energy, Inc. 630 26,909
Talisman Energy, Inc. (a) 1,060 31,604
Teleglobe, Inc. 440 10,994
Toronto Dominion Bank 2,780 64,300
1,530,161
CHILE - 0.1%
Compania Cervecerias Unidas 450 10,041
SA sponsored ADR
Compania de 1,250 23,125
Telecomunicaciones de Chile
SA sponsored ADR
Cristalerias de Chile SA 300 4,875
sponsored ADR
Distribucion Y Servicio D&S 900 15,300
SA ADR
Embotelladora Andina 800 9,300
sponsored ADR Class A
Santa Isabel SA sponsored ADR 1,300 11,050
Sociedad Quimica y Minera de 100 2,475
Chile SA (SQM) sponsored ADR
76,166
DENMARK - 0.3%
Bang & Olufsen Holding AS 1,600 53,136
Novo-Nordisk AS (B Shares) 1,900 255,180
308,316
FINLAND - 0.7%
Nokia AB 13,240 753,025
FRANCE - 3.8%
Access Commerce SA 600 35,547
Aventis SA 2,400 135,000
AXA SA de CV 2,700 401,375
Banque Nationale de Paris 2,175 176,236
(BNP)
Banque Nationale de Paris 286 1,629
(BNP) warrants 7/1/02 (a)
Canal Plus SA 400 77,291
Castorama Dubois 1,265 276,716
Investissements SA
Clarins SA 1,015 100,838
France Telecom SA 3,252 504,479
ILOG SA sponsored ADR (a) 3,100 111,600
Lafarge SA 1,100 91,336
Pernod-Ricard 1,100 49,879
Remy Cointreau SA (a) 2,500 50,335
Rhodia SA 5,060 94,084
Royal Canin SA 1,600 150,353
Sanofi-Synthelabo SA 3,350 125,340
Societe Generale Class A 180 37,373
Suez Lyonnaise des Eaux 1,790 281,433
Television Francaise 1 SA 218 149,618
TotalFinaElf SA Class B 5,846 884,207
Vivendi SA 5,202 515,860
4,250,529
SHARES VALUE (NOTE 1)
GERMANY - 2.0%
ACG AG 225 $ 54,337
Allianz AG (Reg.) 895 345,306
Arxes Information Design AG 2,700 93,982
BASF AG 1,900 83,280
DaimlerChrysler AG (Reg.) 3 173
Deutsche Telekom AG 7,570 492,568
Kali Und Salz Beteiligungs AG 5,520 73,908
Karstadt Quelle AG 3,100 94,654
Munich Reinsurance AG (Reg.) 550 161,668
Primacom AG (a) 2,300 177,140
Siemens AG 2,250 334,274
Software AG (a) 1,000 115,754
United Internet AG (a) 200 51,588
Veba AG 3,000 150,936
2,229,568
HONG KONG - 0.7%
Cable & Wireless Hkt Ltd. 30,998 71,683
Cathay Pacific Airways Ltd. 8,000 14,430
Cheung Kong Holdings Ltd. 8,000 95,518
China Telecom Ltd. (a) 2,000 14,669
CLP Holdings Ltd. 4,000 17,922
Dao Heng Bank Group Ltd. 3,000 13,866
Giordano International Ltd. 20,000 32,738
Great Eagle Holdings Ltd. 8,000 13,660
Hang Seng Bank Ltd. 2,900 26,714
Hong Kong & China Gas Co. 21,137 23,202
Ltd.
Hutchison Whampoa Ltd. 14,000 204,003
JCG Holdings Ltd. 26,000 13,519
Johnson Electric Holdings 6,000 48,337
Ltd.
Li & Fung Ltd. 18,000 69,559
Sun Hung Kai Properties Ltd. 10,000 79,277
Swire Pacific Ltd. Class A 5,000 28,245
Wharf Holdings Ltd. 7,000 14,514
Wheelock & Co. Ltd. 6,000 4,237
Wing Hang Bank Ltd. 6,000 14,713
800,806
IRELAND - 0.1%
Bank of Ireland, Inc. 10,480 70,685
ISRAEL - 0.1%
Orad Hi-Tech Systems Ltd. (a) 1,700 77,473
ITALY - 0.6%
Banca Intesa Spa 35,900 133,960
Banca Nazionale del Lavoro 38,450 125,182
(BNL)
Beni Stabili Spa 10,760 5,339
Eni Spa 12,280 60,977
Telecom Italia Mobile Spa 22,900 219,263
Telecom Italia Spa 5,700 81,439
626,160
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
JAPAN - 11.4%
Ajinomoto Co., Inc. 5,000 $ 57,102
Asahi Glass Co. Ltd. 7,000 61,365
Bank of Tokyo-Mitsubishi Ltd. 11,000 141,798
Canon, Inc. 4,000 185,750
Chiba Bank 8,000 31,885
Chubu Electric Power Co., 5,000 82,301
Inc.
Coca-Cola West Japan Co. Ltd. 1,232 34,178
CSK Corp. 1,100 42,214
Dai-Ichi Kangyo Bank Ltd. 13,000 107,712
Daicel Chemical Industries 10,000 30,608
Ltd.
Daiwa Securities Group, Inc. 17,000 259,386
DDI Corp. 26 298,132
Don Quijote Co. Ltd. 300 50,768
FamilyMart Co. Ltd. 1,000 36,619
Fuji Bank Ltd. 12,000 99,871
Fuji Coca-Cola Bottling Co. 3,000 28,435
Ltd.
Fuji Television Network, Inc. 2 33,290
Fujitsu Ltd. 13,000 367,856
Fujitsu Support & Service, 100 14,796
Inc. (FSAS) New
Furukawa Electric Co. Ltd. 25,000 346,542
Hikari Tsushin, Inc. 200 28,851
Hirose Electric Co. Ltd. 500 60,385
Hitachi Information Systems 3,000 116,238
Co. Ltd.
Honda Motor Co. Ltd. (a) 5,000 221,250
Hosiden Corp. 2,000 93,213
Inax Corp. 20,000 109,118
Ito En Ltd. 1,000 98,946
Ito-Yokado Co. Ltd. 3,000 218,883
Japan Medical Dynamic 3,000 99,038
Marketing, Inc.
Kaneka Corp. 6,000 77,122
Kansai Electric Power Co., 4,000 62,881
Inc.
Kao Corp. 2,000 60,847
KDD Corp. 500 57,888
Konami Co. Ltd. 1,000 61,032
Konami Co. Ltd. New 1,300 75,855
Kyocera Corp. 2,000 332,125
Matsushita Electric 7,000 186,550
Industrial Co. Ltd.
Mikasa Coca Cola Bottling Co. 3,800 30,923
Mitsubishi Electric Corp. 19,000 162,169
Mitsubishi Trust & Banking 4,000 33,549
Corp.
Mitsui Chemicals, Inc. 10,000 79,619
Mitsumi Electric Co. Ltd. 2,000 82,486
Murata Manufacturing Co. Ltd. 1,000 194,193
NEC Corp. 10,000 271,870
Net One Systems Co. Ltd. 4 136,490
Nichicon Corp. 6,000 160,903
Nidec Corp. 600 41,613
Nidec Corp. New 600 41,613
Nintendo Co. Ltd. 400 66,580
Nippon Computer Systems Corp. 5,000 96,634
Nippon Express Co. Ltd. 8,000 50,453
SHARES VALUE (NOTE 1)
Nippon Paper Industries Co. 9,000 $ 56,926
Ltd.
Nippon Sheet Glass Co. Ltd. 11,000 97,651
Nippon Steel Corp. 27,000 60,671
Nippon System Development Co. 1,340 127,755
Ltd.
Nippon Telegraph & Telephone 27 334,566
Corp.
Nippon Zeon Co. Ltd. 10,000 61,957
Nitto Denko Corp. 3,000 117,625
Nomura Securities Co. Ltd. 4,000 100,610
NTT DoCoMo, Inc. (d) 11 367,209
Oki Electric Industry Co. 12,000 84,335
Ltd. (a)
Omron Corp. 9,000 244,683
ORIX Corp. 720 102,667
Paris Miki, Inc. 1,300 82,708
Pasona Softbank, Inc. 1,000 46,236
Ricoh Co. Ltd. 5,000 105,419
Rohm Co. Ltd. 900 301,276
Ryohin Keikaku Co. Ltd. 400 74,163
Sakura Bank Ltd. 25,000 175,236
Sanyo Electric Co. Ltd. 10,000 66,673
Secom Co. Ltd. 1,000 83,780
Senshukai Co. Ltd. 3,000 30,932
Sharp Corp. 4,000 77,122
Shin-Etsu Chemical Co. Ltd. 2,000 105,604
SMC Corp. 500 99,408
Softbank Corp. 600 147,586
Softbank Corp. New 1,200 295,173
Sony Corp. 2,200 248,188
Sony Corp. New 2,300 259,469
Square Co. Ltd. 1,800 132,328
Sumitomo Trust & Banking Ltd. 10,000 73,053
Takeda Chemical Industries 4,000 262,992
Ltd.
The Suruga Bank Ltd. 6,000 102,645
THK Co. Ltd. 2,000 84,150
Tokai Bank Ltd. 12,000 62,364
Toko, Inc. 20,000 166,451
Tokyo Broadcasting System, 2,000 86,924
Inc.
Tokyo Electric Power Co. 4,000 94,322
Tokyo Seimitsu Co. Ltd. 1,700 177,640
Tokyo Tomin Bank Ltd. 3,000 94,322
Tokyu Corp. 7,000 27,446
Toshiba Corp. 11,000 106,603
Toyoda Gosei Co. Ltd. 3,000 173,386
Toyota Motor Corp. 9,000 449,719
Trans Cosmos, Inc. 400 79,527
Trend Micro, Inc. (a) 1,000 149,806
Tsubaki Nakashima Co. Ltd. 6,000 75,014
World Co. Ltd. 400 30,035
World Co. Ltd. New 200 15,018
Yakult Honsha Co. Ltd. 19,000 195,025
Yamanouchi Pharmaceutical Co. 4,000 211,208
Ltd.
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
JAPAN - CONTINUED
Yokogawa Electric Corp. 7,000 $ 53,403
Yoshitomi Pharmaceutical 3,000 42,168
Industries Ltd.
12,621,102
LUXEMBOURG - 0.1%
Quilmes Industrial SA 1,300 12,350
sponsored ADR
Societe Europeen Des 600 91,396
Satellite unit
103,746
MEXICO - 0.4%
Alfa SA de CV 3,000 9,306
Banacci SA de CV Series O (a) 10,000 36,180
Corporacion Interamericana de 3,000 12,243
Entretenimiento SA de CV
Series B (a)
El Puerto de Liverpool SA 6,000 9,717
Class C (a)
Grupo Carso SA de CV Series 5,000 16,946
A1 (a)
Grupo Financiero Bancomer SA 74,000 32,994
de CV Series A (a)
Grupo Televisa SA de CV 1,000 63,438
sponsored ADR (a)
Nuevo Grupo Iusacell SA de CV 500 7,969
sponsored ADR (a)
Telefonos de Mexico SA de CV 3,290 193,493
Series L sponsored ADR
Tubos de Acero de Mexico SA 950 14,191
sponsored ADR
TV Azteca SA de CV sponsored 2,725 29,975
ADR
Wal-Mart de Mexico SA de CV 30,000 64,166
Series C (a)
490,618
NETHERLANDS - 1.4%
Aegon NV 1,560 112,398
Akzo Nobel NV 3,220 132,157
Equant NV (a) 640 49,670
ING Groep NV (Certificaten 6,664 364,556
Van Aandelen)
Koninklijke Ahold NV 6,559 153,341
Koninklijke KPN NV 2,890 291,989
Numico NV 4,795 178,749
Nutreco Holding NV 2,020 78,708
Unilever NV (Certificaten Van 1,777 80,918
Aandelen)
United Pan-Europe 2,400 87,565
Communications NV (a)
Vendex KBB NV 4,970 76,782
1,606,833
NETHERLANDS ANTILLES - 0.1%
Schlumberger Ltd. 800 61,250
NEW ZEALAND - 0.0%
Lion Nathan Ltd. 3,900 7,877
Telecom Corp. of New Zealand 7,200 30,412
Ltd.
38,289
SHARES VALUE (NOTE 1)
NORWAY - 0.4%
Opticom ASA (a) 400 $ 42,276
Tandberg ASA (a) 11,200 171,611
TANDBERG Television ASA (a) 19,800 179,373
VMETRO ASA 8,200 76,120
469,380
PANAMA - 0.0%
Panamerican Beverages, Inc. 850 13,972
Class A
PAPUA NEW GUINEA - 0.0%
Oil Search Ltd. (a) 6,800 6,155
PERU - 0.0%
Compania de Minas 1,100 18,975
Buenaventura SA Class B
sponsored ADR
Telefonica del Peru SA ADR 2,100 31,763
50,738
SINGAPORE - 0.4%
Chartered Semiconductor 5,000 43,071
Manufacturing Ltd.
City Developments Ltd. 3,000 13,624
Datacraft Asia Ltd. 2,000 15,000
DBS Group Holdings Ltd. 3,652 50,291
DBS Land Ltd. 5,000 7,091
Natsteel Electronics Ltd. 3,000 17,228
Oversea-Chinese Banking Corp. 4,300 29,481
Ltd.
Overseas Union Bank Ltd. 4,281 19,567
Singapore Airlines Ltd. 4,000 41,488
Singapore Press Holdings Ltd. 2,000 39,144
Singapore Telecommunications 16,000 23,065
Ltd.
St. Assembly Test Services 1,000 41,688
Ltd. ADR
United Overseas Bank Ltd. 5,280 36,819
Venture Manufacturing 3,000 35,160
Singapore Ltd.
412,717
SPAIN - 0.8%
Altadis SA 10,643 125,428
Banco Santander Central 17,988 188,053
Hispano SA
Cortefiel SA 5,880 124,336
Sogecable SA (a) 1,500 63,642
Telefonica SA (a) 16,560 369,492
870,951
SWEDEN - 0.9%
Elanders AB (B Shares) 3,900 124,922
Skandinaviska Enskilda Banken 9,840 108,001
(A Shares)
Tele1 Europe Holding AB (a) 1,200 18,950
Telefonaktiebolaget LM
Ericsson:
(B Shares) 6,530 577,497
sponsored ADR 1,650 145,922
TV 4 AB (A Shares) 1,700 46,647
1,021,939
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
SWITZERLAND - 1.8%
ABB Ltd. (Reg.) 1,600 $ 180,105
Ascom Holding AG (Bearer) 41 139,529
Credit Suisse Group (Reg.) 719 130,290
Fantastic Corp. (a) 8,600 157,553
Gretag Imaging Holding AG 700 141,099
(Reg. D)
Julius Baer Holding AG 26 91,204
Kuoni Reisen Holding AG Class 24 104,293
B (Reg.)
Logitech International SA (a) 96 63,553
Logitech International SA ADR 1,283 83,555
Nestle SA (Reg.) 154 272,344
Novartis AG (Reg.) 163 228,428
PubliGroupe SA 131 101,355
Richemont Compagnie Financier 51 124,311
Class A unit
Roche Holding AG 19 199,063
participation certificates
2,016,682
UNITED KINGDOM - 6.2%
3i Group PLC 5,500 110,135
Abbey National PLC 9,560 108,638
Amvescap PLC 11,530 166,312
AstraZeneca Group PLC:
(Sweden) 583 24,453
(United Kingdom) 3,490 147,016
Barclays PLC 9,100 232,127
BP Amoco PLC 63,270 537,795
British Land Co. PLC 15,400 102,334
British Telecommunications PLC 17,010 311,283
Cable & Wireless PLC 23,700 391,375
Carlton Communications PLC 18,200 218,838
CGU PLC 3,300 47,087
Diageo PLC 21,450 173,111
Energis PLC (a) 2,500 123,076
Filtronic PLC 2,100 56,439
Glaxo Wellcome PLC 4,730 148,552
HSBC Holdings PLC:
(United Kingdom) (Reg.) 17,296 197,823
(Hong Kong) (Reg.) 2,244 25,666
Jazztel PLC sponsored ADR 1,200 62,400
Legal & General Group PLC 46,300 120,478
Lloyds TSB Group PLC 16,479 160,769
Marconi PLC 8,400 104,591
Misys PLC 9,100 103,623
Prudential Corp. PLC 10,500 160,834
Reed International PLC 15,000 103,580
Reuters Group PLC 5,000 89,249
Scottish Media Group PLC 25,100 456,216
Scottish Media Group PLC New 1,240 22,442
(a)
Shell Transport & Trading Co. 71,590 575,703
PLC (Reg.)
Smith & Nephew PLC 33,460 96,163
SmithKline Beecham PLC 18,414 253,192
SSL International PLC 18,831 190,882
SHARES VALUE (NOTE 1)
Telewest Communications PLC 25,289 $ 153,315
(a)
Vodafone AirTouch PLC 210,175 987,824
WPP Group PLC 6,580 105,696
6,869,017
UNITED STATES OF AMERICA -
28.7%
Abbott Laboratories 3,100 119,156
ADC Telecommunications, Inc. 1,800 109,350
(a)
AES Corp. (a) 900 80,944
Affiliated Computer Services, 1,800 59,625
Inc. Class A (a)
AFLAC, Inc. 2,300 112,269
Agilent Technologies, Inc. 4,100 363,363
Alcoa, Inc. 2,014 130,658
Allergan, Inc. 1,400 82,425
Alteon Websystems, Inc. 1,000 68,000
AMBAC Financial Group, Inc. 2,300 110,400
Amerada Hess Corp. 900 57,263
American Express Co. 1,800 270,113
American International Group, 5,725 627,961
Inc.
AMFM, Inc. (a) 2,400 159,300
Amgen, Inc. (a) 2,900 162,400
Applied Micro Circuits Corp. 1,000 128,875
(a)
Associates First Capital 5,548 123,096
Corp. Class A
AT&T Corp. 11,262 525,795
AT&T Corp.:
Liberty Media Group Class A 1,800 89,888
(a)
Wireless Group 10,400 330,850
Avery Dennison Corp. 1,500 98,438
Avon Products, Inc. 5,000 207,500
Baker Hughes, Inc. 1,600 50,900
Bank of America Corp. 1,000 49,000
Bank of New York Co., Inc. 12,200 500,963
Bank One Corp. 3,000 91,500
Baxter International, Inc. 1,800 117,225
Bed Bath & Beyond, Inc. (a) 1,400 51,363
BellSouth Corp. 5,000 243,438
Bemis Co., Inc. 1,400 51,538
Biomet, Inc. 1,400 49,963
Black & Decker Corp. 3,000 126,188
Boeing Co. 3,800 150,813
Bristol-Myers Squibb Co. 8,900 466,694
Broadcom Corp. Class A (a) 200 34,475
Burlington Northern Santa Fe 5,700 137,513
Corp.
Calpine Corp. (a) 3,000 274,500
Cardinal Health, Inc. 900 49,556
CBS Corp. (a) 4,600 270,250
Cendant Corp. (a) 3,700 57,119
Ceridian Corp. (a) 4,000 86,750
Charles Schwab Corp. 2,000 89,000
Chevron Corp. 1,400 119,175
Cisco Systems, Inc. (a) 19,800 1,372,697
Citigroup, Inc. 11,475 682,045
Clear Channel Communications, 2,800 201,600
Inc. (a)
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
UNITED STATES OF AMERICA -
CONTINUED
Coca-Cola Enterprises, Inc. 2,000 $ 42,625
Comstock Resources, Inc. (a) 9,200 43,700
Cooper Cameron Corp. (a) 2,000 150,000
Costco Wholesale Corp. (a) 1,900 102,719
Crown Castle International 3,500 134,313
Corp. (a)
Dell Computer Corp. (a) 7,200 360,900
DST Systems, Inc. (a) 1,300 96,444
Dynegy, Inc. Class A 5,174 338,574
EchoStar Communications Corp. 4,000 254,750
Class A (a)
Edwards Lifesciences Corp. (a) 360 5,400
Eli Lilly & Co. 7,200 556,650
EMC Corp. (a) 5,500 764,156
Exxon Mobil Corp. 9,876 767,242
Fannie Mae 4,000 241,250
Firstar Corp. 9,000 223,875
Fluor Corp. 1,700 57,056
Freddie Mac 4,600 211,313
Gap, Inc. 2,500 91,875
Genentech, Inc. 1,500 175,500
General Electric Co. 8,300 1,305,175
Halliburton Co. 3,600 159,075
Healtheon/Web Maryland Corp. 3,500 73,719
(a)
Home Depot, Inc. 10,350 580,247
Household International, Inc. 3,093 129,133
Impsat Fiber Networks, Inc. 900 14,231
IMS Health, Inc. 1,800 30,713
Ingersoll-Rand Co. 1,800 84,488
Inktomi Corp. (a) 3,000 461,813
Intel Corp. 9,700 1,230,081
International Business 2,000 223,250
Machines Corp.
Interpublic Group of 2,800 114,800
Companies, Inc.
JDS Uniphase Corp. (a) 1,500 155,531
Juniper Networks, Inc. 600 127,613
Knight/Trimark Group, Inc. 2,000 75,375
Class A (a)
Leggett & Platt, Inc. 5,700 121,838
Lexmark International Group, 1,500 177,000
Inc. Class A (a)
Lowe's Companies, Inc. 1,800 89,100
LSI Logic Corp. (a) 2,500 156,250
Lucent Technologies, Inc. 9,800 609,438
Lycos, Inc. (a) 1,000 46,500
Lyondell Chemical Co. 6,000 110,250
Magna Entertainment Corp. 196 809
Class A (a)
Masco Corp. 1,700 38,144
MBIA, Inc. 2,000 98,875
McDonald's Corp. 3,800 144,875
MCI WorldCom, Inc. (a) 12,956 588,688
McLeodUSA, Inc. Class A (a) 16,500 412,500
Meredith Corp. 1,800 50,063
Merrill Lynch & Co., Inc. 700 71,356
SHARES VALUE (NOTE 1)
Metromedia Fiber Network, 3,000 $ 92,625
Inc. Class A (a)
Micron Technology, Inc. (a) 1,500 208,875
Microsoft Corp. (a) 11,500 802,125
Motorola, Inc. 3,300 392,906
Nabisco Group Holdings Corp. 7,000 90,125
Nabisco Holdings Corp. Class A 2,800 105,175
Navistar International Corp. 2,000 70,000
(a)
Nextel Communications, Inc. 4,100 448,694
Class A (a)
NEXTLINK Communications, Inc. 1,500 126,469
Class A (a)
Noble Drilling Corp. (a) 2,800 111,825
Omnicom Group, Inc. 2,800 254,975
Oracle Corp. (a) 1,000 79,938
Parker-Hannifin Corp. 3,300 153,450
Pharmacia Corp. 4,000 199,750
Phelps Dodge Corp. 2,000 92,500
Philip Morris Companies, Inc. 2,500 54,688
PMC-Sierra, Inc. (a) 1,500 287,813
Procter & Gamble Co. 2,600 155,025
QUALCOMM, Inc. (a) 1,200 130,125
Redback Networks, Inc. 1,700 134,938
Rogers Corp. (a) 2,000 134,750
Sabre Holdings Corp. Class A 2,000 69,875
Safeway, Inc. (a) 700 30,888
SBA Communications Corp. 4,000 162,500
SBC Communications, Inc. 8,580 375,911
Schering-Plough Corp. 6,800 274,125
SCM Microsystems, Inc. (a) 700 57,964
Sealed Air Corp. (a) 1,900 105,688
Shaw Industries, Inc. 4,000 63,250
Smurfit-Stone Container Corp. 2,800 42,700
(a)
Sprint Corp. - PCS Group 4,800 264,000
Series 1 (a)
Sun Microsystems, Inc. (a) 4,000 367,750
Sunoco, Inc. 1,000 30,313
Tellabs, Inc. (a) 3,000 164,438
Texas Instruments, Inc. 3,400 553,775
The Chubb Corp. 2,000 127,250
The Coca-Cola Co. 2,300 108,244
Time Warner, Inc. 2,404 216,210
Tosco Corp. 3,000 96,188
Tyco International Ltd. 3,000 137,813
Union Carbide Corp. 1,500 88,500
Union Pacific Resources 900 17,269
Group, Inc.
Unisys Corp. (a) 6,300 146,081
United Technologies Corp. 2,800 174,125
Viacom, Inc. Class B 1,800 97,875
(non-vtg.) (a)
VoiceStream Wireless Corp. (a) 3,400 336,600
Wal-Mart Stores, Inc. 15,000 830,625
Walgreen Co. 6,800 191,250
Walt Disney Co. 2,000 86,625
Warner-Lambert Co. 6,300 717,019
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
UNITED STATES OF AMERICA -
CONTINUED
Waters Corp. (a) 1,500 $ 142,125
Wells Fargo & Co. 6,000 246,375
31,891,328
VENEZUELA - 0.0%
Compania Anonima Nacional 1,100 31,900
Telefono de Venezuela
sponsored ADR
TOTAL COMMON STOCKS 70,603,830
(Cost $53,006,127)
PREFERRED STOCKS - 0.2%
CONVERTIBLE PREFERRED STOCKS
- 0.0%
AUSTRALIA - 0.0%
WBK STRYPES Trust (Westpac 1,100 33,000
Banking Corp.) $3.135
NONCONVERTIBLE PREFERRED
STOCKS - 0.2%
GERMANY - 0.2%
SAP AG 90 53,197
Wella AG 4,384 111,882
165,079
TOTAL PREFERRED STOCKS 198,079
(Cost $193,696)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
NONCONVERTIBLE BONDS - 0.0%
MOODY'S RATINGS (UNAUDITED) PRINCIPAL AMOUNT (C)
UNITED KINGDOM - 0.0%
British Aerospace PLC 7.45% - GBP 1,137 1,713
11/30/03 (Cost $1,339)
GOVERNMENT OBLIGATIONS (E) -
27.9%
FRANCE - 3.3%
French Government:
OAT 5.5% 4/25/04 Aaa EUR 2,200,000 2,045,294
4% 4/25/09 Aaa EUR 2,000,000 1,646,808
3,692,102
GERMANY - 3.9%
Germany Federal Republic:
3.75% 1/4/09 Aaa EUR 800,000 653,182
4.5% 3/15/02 Aaa EUR 1,200,000 1,091,990
4.5% 5/17/02 Aaa EUR 300,000 272,423
MOODY'S RATINGS (UNAUDITED) PRINCIPAL AMOUNT (C) VALUE (NOTE 1)
5.625% 1/4/28 Aaa EUR 350,000 $ 317,444
7.375% 1/3/05 Aaa EUR 625,000 622,008
Treuhandanstalt:
6.625% 7/9/03 Aaa EUR 877,507 838,834
7.5% 9/9/04 Aaa EUR 500,000 497,834
4,293,715
ITALY - 1.0%
Italian Republic:
6.75% 2/1/07 Aa3 EUR 700,000 685,547
10.5% 9/1/05 Aa3 EUR 361,519 408,028
1,093,575
SPAIN - 0.8%
Spanish Kingdom 4.5% 7/30/04 Aa2 EUR 1,000,000 890,578
SWEDEN - 0.6%
Swedish Kingdom 10.25% 5/5/03 Aaa SEK 5,000,000 636,821
UNITED KINGDOM - 4.3%
United Kingdom, Great
Britain & Northern Ireland:
6.75% 11/26/04 Aaa GBP 600,000 968,825
9% 10/13/08 Aaa GBP 2,000,000 3,831,218
4,800,043
UNITED STATES OF AMERICA -
14.0%
Federal Home Loan Bank:
4.875% 1/22/02 Aaa 1,500,000 1,446,555
5.125% 9/15/03 Aaa 1,495,000 1,401,802
5.19% 10/20/03 Aaa 650,000 608,563
5.28% 1/6/04 Aaa 1,515,000 1,417,464
Freddie Mac 5.75% 7/15/03 Aaa 1,480,000 1,416,064
U.S. Treasury Bond stripped Aaa 11,530,000 2,254,461
principal 0% 11/15/27
U.S. Treasury Bonds:
7.125% 2/15/23 Aaa 1,350,000 1,490,063
8.125% 8/15/19 Aaa 1,300,000 1,562,028
12.75% 11/15/10 (callable) Aaa 880,000 1,120,627
13.875% 5/15/11 (callable) Aaa 980,000 1,324,382
U.S. Treasury Notes:
5.5% 1/31/03 Aaa 640,000 621,798
6.5% 10/15/06 Aaa 400,000 399,124
7% 7/15/06 Aaa 425,000 434,694
15,497,625
TOTAL GOVERNMENT OBLIGATIONS 30,904,459
(Cost $34,788,673)
</TABLE>
CASH EQUIVALENTS - 8.4%
SHARES VALUE (NOTE 1)
Central Cash Collateral Fund, 19,438 $ 19,438
5.94% (b)
Taxable Central Cash Fund, 9,269,793 9,269,793
5.77% (b)
TOTAL CASH EQUIVALENTS 9,289,231
(Cost $9,289,231)
TOTAL INVESTMENT PORTFOLIO - 110,997,312
100.1%
(Cost $97,279,066)
NET OTHER ASSETS - (0.1)% (90,654)
NET ASSETS - 100% $ 110,906,658
SECURITY TYPE ABBREVIATIONS
STRYPES - Structured Yield Product
Exchangeable for Common Stocks
CURRENCY ABBREVIATIONS
AUD - Australian dollar
EUR - European Monetary Unit
GBP - British pound
SEK - Swedish krona
LEGEND
(a) Non-income producing
(b) The rate quoted is the annualized seven-day yield of the fund at
period end.
(c) Principal amount is stated in United States dollars unless
otherwise noted.
(d) Security exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may be resold in transactions
exempt from registration, normally to qualified institutional buyers.
At the period end, the value of these securities amounted to $367,209
or 0.3% of net assets.
(e) For foreign government obligations not individually rated by S&P
or Moody's, the ratings listed have been assigned by FMR, the fund's
investment adviser, based principally on S&P and Moody's ratings of
the sovereign credit of the issuing government.
(f) Purchased on an installment basis. Market value reflects only
those payments made through April 30, 2000. The remaining installments
aggregating AUD 16,820 are due November 2, 2000.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $33,100,180 and $29,231,823, respectively.
The fund placed a portion of its portfolio transactions with brokerage
firms which are affiliates of Fidelity Management & Research Company.
The commissions paid to these affiliated firms were $601 for the
period.
The fund participated in the security lending program. At period end,
the value of securities loaned amounted to $17,506. The fund received
cash collateral of $19,438 which was invested in cash equivalents.
The composition of long-term debt holdings as a percentage of total
value of investments in securities, is as follows (ratings are
unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 27.8% AAA, AA, A 24.0%
Baa 0.0% BBB 0.0%
Ba 0.0% BB 0.0%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
INCOME TAX INFORMATION
At April 30, 2000, the aggregate cost of investment securities for
income tax purposes was $97,435,633. Net unrealized appreciation
aggregated $13,561,679, of which $21,006,251 related to appreciated
investment securities and $7,444,572 related to depreciated investment
securities.
GLOBAL BALANCED
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000 (UNAUDITED)
ASSETS
Investment in securities, at $ 110,997,312
value (cost $97,279,066) -
See accompanying schedule
Foreign currency held at 91,898
value (cost $87,069)
Receivable for investments 1,886,519
sold
Receivable for fund shares 125,673
sold
Dividends receivable 123,437
Interest receivable 579,150
Other receivables 468
TOTAL ASSETS 113,804,457
LIABILITIES
Payable to custodian bank $ 53
Payable for investments 2,513,465
purchased
Payable for fund shares 215,617
redeemed
Accrued management fee 67,890
Other payables and accrued 81,336
expenses
Collateral on securities 19,438
loaned, at value
TOTAL LIABILITIES 2,897,799
NET ASSETS $ 110,906,658
Net Assets consist of:
Paid in capital $ 91,428,982
Undistributed net investment 416,804
income
Accumulated undistributed net 5,365,789
realized gain (loss) on
investments and foreign
currency transactions
Net unrealized appreciation 13,695,083
(depreciation) on
investments and assets and
liabilities in foreign
currencies
NET ASSETS, for 5,629,973 $ 110,906,658
shares outstanding
NET ASSET VALUE, offering $19.70
price and redemption price
per share ($110,906,658
(divided by) 5,629,973
shares)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30,
2000 (UNAUDITED)
INVESTMENT INCOME $ 308,794
Dividends
Interest 1,192,571
Security lending 741
1,502,106
Less foreign taxes withheld (21,689)
TOTAL INCOME 1,480,417
EXPENSES
Management fee $ 391,556
Transfer agent fees 133,667
Accounting and security 32,605
lending fees
Non-interested trustees' 157
compensation
Custodian fees and expenses 86,769
Registration fees 33,615
Audit 25,764
Legal 2,787
Miscellaneous 3,468
Total expenses before 710,388
reductions
Expense reductions (5,578) 704,810
NET INVESTMENT INCOME 775,607
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities 5,689,563
Foreign currency transactions (37,492) 5,652,071
Change in net unrealized
appreciation (depreciation)
on:
Investment securities 1,066,481
Assets and liabilities in (22,845) 1,043,636
foreign currencies
NET GAIN (LOSS) 6,695,707
NET INCREASE (DECREASE) IN $ 7,471,314
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION $ 4,733
Expense reductions Directed
brokerage arrangements
Transfer agent credits 845
$ 5,578
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET SIX MONTHS ENDED APRIL 30, THREE MONTHS ENDED OCTOBER YEAR ENDED JULY 31, 1999
ASSETS 2000 (UNAUDITED) 31, 1999
Operations Net investment $ 775,607 $ 451,563 $ 1,727,776
income
Net realized gain (loss) 5,652,071 3,699,763 4,660,042
Change in net unrealized 1,043,636 403,420 2,979,683
appreciation (depreciation)
NET INCREASE (DECREASE) IN 7,471,314 4,554,746 9,367,501
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (772,133) (973,940) (1,574,612)
From net investment income
From net realized gain (1,286,888) - -
TOTAL DISTRIBUTIONS (2,059,021) (973,940) (1,574,612)
Share transactions Net 38,840,210 12,762,394 45,697,691
proceeds from sales of shares
Reinvestment of distributions 1,935,066 910,684 1,484,276
Cost of shares redeemed (32,749,292) (21,541,440) (48,179,432)
NET INCREASE (DECREASE) IN 8,025,984 (7,868,362) (997,465)
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) 13,438,277 (4,287,556) 6,795,424
IN NET ASSETS
NET ASSETS
Beginning of period 97,468,381 101,755,937 94,960,513
End of period (including $ 110,906,658 $ 97,468,381 $ 101,755,937
undistributed net investment
income of $416,804,
$403,390 and $989,733
respectively)
OTHER INFORMATION
Shares
Sold 1,961,744 703,403 2,735,365
Issued in reinvestment of 101,684 49,710 95,920
distributions
Redeemed (1,654,169) (1,180,075) (2,898,880)
Net increase (decrease) 409,259 (426,962) (67,595)
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SIX MONTHS ENDED APRIL 30, 2000 THREE MONTHS ENDED OCTOBER 31, YEARS ENDED JULY 31,
SELECTED PER-SHARE DATA (UNAUDITED) 1999 1999 1998
Net asset value,
beginning of $ 18.67 $ 18.02 $ 16.62 $ 15.45
period
Income from Investment
Operations
Net investment income .14 D .08 D .31 D .30 D
Net realized and unrealized 1.29 .74 1.37 1.27
gain (loss)
Total from investment 1.43 .82 1.68 1.57
operations
Less Distributions
From net investment income (.15) (.17) (.28) (.40)
From net realized gain (.25) - - -
Total distributions (.40) (.17) (.28) (.40)
Net asset value, end of
period $ 19.70 $ 18.67 $ 18.02 $ 16.62
TOTAL RETURN B, C 7.73% 4.57% 10.39% 10.53%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 110,907 $ 97,468 $ 101,756 $ 94,961
(000 omitted)
Ratio of expenses to average 1.34% A 1.20% A 1.32% 1.39%
net assets
Ratio of expenses to average 1.33% A, E 1.19% A, E 1.30% E 1.37% E
net assets after expense
reductions
Ratio of net investment 1.46% A 1.74% A 1.83% 1.95%
income to average net assets
Portfolio turnover rate 60% A 80% A 100% 81%
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS
OF LESS THAN ONE YEAR ARE
NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
D NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES
OUTSTANDING DURING THE PERIOD.
E FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
SELECTED PER-SHARE DATA 1997 1996 1995
Net asset value, beginning of $ 12.91 $ 12.40 $ 11.99
period
Income from Investment
Operations
Net investment income .31 D .31 .28
Net realized and unrealized 2.68 .25 .13
gain (loss)
Total from investment 2.99 .56 .41
operations
Less Distributions
From net investment income (.45) (.05) -
From net realized gain - - -
Total distributions (.45) (.05) -
Net asset value, end of period $ 15.45 $ 12.91 $ 12.40
TOTAL RETURN B, C 23.93% 4.52% 3.42%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 74,619 $ 87,785 $ 148,831
(000 omitted)
Ratio of expenses to average 1.51% 1.39% 1.34%
net assets
Ratio of expenses to average 1.49% E 1.36% E 1.33% E
net assets after expense
reductions
Ratio of net investment 2.28% 2.94% 4.68%
income to average net assets
Portfolio turnover rate 57% 189% 242%
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS
OF LESS THAN ONE YEAR ARE
NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
D NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES
OUTSTANDING DURING THE PERIOD.
E FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
</TABLE>
INTERNATIONAL GROWTH & INCOME
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value).
CUMULATIVE TOTAL RETURNS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PERIODS ENDED OCTOBER 31, 1994 PAST 6 MONTHS PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY INTL GROWTH & INCOME 16.95% 35.92% 107.08% 204.17%
MSCI EAFE 6.81% 14.11% 64.91% 135.87%
International Funds Average 14.17% 24.75% 89.12% 169.74%
</TABLE>
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or 10 years. For example, if you had invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment
would be $1,050. You can compare the fund's returns to the performance
of the Morgan Stanley Capital International Europe, Australasia, Far
East (EAFE) Index - a market capitalization-weighted index that is
designed to represent the performance of developed stock markets
outside the United States and Canada. As of April 30, 2000, the index
included over 950 equity securities of countries domiciled in 20
countries. To measure how the fund's performance stacked up against
its peers, you can compare it to the international funds average,
which reflects the performance of mutual funds with similar objectives
tracked by Lipper Inc. The past six months average represents a peer
group of 675 mutual funds. These benchmarks include reinvested
dividends and capital gains, if any, and exclude the effect of sales
charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1994 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY INTL GROWTH & INCOME 35.92% 15.67% 11.77%
MSCI EAFE 14.11% 10.52% 8.96%
International Funds Average 24.75% 13.15% 10.15%
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER 10 YEARS
Int'l Growth & Income MS EAFE (Net MA tax)
00305 MS001
1990/04/30 10000.00 10000.00
1990/05/31 10647.87 11141.01
1990/06/30 10983.23 11042.89
1990/07/31 11493.90 11198.43
1990/08/31 10510.67 10110.97
1990/09/30 9496.95 8701.86
1990/10/31 10449.70 10057.77
1990/11/30 10213.41 9464.48
1990/12/31 10237.80 9617.81
1991/01/31 10600.06 9928.89
1991/02/28 11198.58 10993.26
1991/03/31 10796.94 10333.31
1991/04/30 10962.32 10434.78
1991/05/31 10946.57 10543.66
1991/06/30 10418.93 9768.91
1991/07/31 10781.19 10248.87
1991/08/31 10741.81 10040.74
1991/09/30 11088.33 10606.62
1991/10/31 11017.45 10756.98
1991/11/30 10710.31 10254.80
1991/12/31 11060.70 10784.39
1992/01/31 11044.75 10554.03
1992/02/29 11060.70 10176.28
1992/03/31 10701.84 9504.48
1992/04/30 11172.34 9549.66
1992/05/31 11674.74 10188.87
1992/06/30 11563.09 9705.59
1992/07/31 11188.29 9457.20
1992/08/31 11387.65 10050.36
1992/09/30 11196.26 9851.89
1992/10/31 10598.17 9335.12
1992/11/30 10574.25 9422.96
1992/12/31 10691.17 9471.70
1993/01/31 10789.18 9470.54
1993/02/28 11083.20 9756.61
1993/03/31 11908.12 10607.05
1993/04/30 12569.68 11613.69
1993/05/31 12863.70 11858.97
1993/06/30 12692.19 11673.94
1993/07/31 13116.90 12082.59
1993/08/31 13802.96 12734.84
1993/09/30 13713.12 12448.19
1993/10/31 14088.82 12831.81
1993/11/30 13606.94 11710.18
1993/12/31 14441.63 12555.74
1994/01/31 15197.83 13617.27
1994/02/28 14926.58 13579.55
1994/03/31 14129.29 12994.66
1994/04/30 14318.34 13546.01
1994/05/31 14581.36 13468.24
1994/06/30 14227.93 13658.57
1994/07/31 14466.29 13789.93
1994/08/31 14606.02 14116.41
1994/09/30 14269.02 13671.80
1994/10/31 14416.97 14127.07
1994/11/30 13973.12 13448.12
1994/12/31 14026.97 13532.33
1995/01/31 13551.76 13012.48
1995/02/28 13645.11 12975.14
1995/03/31 14425.80 13784.41
1995/04/30 14688.86 14302.82
1995/05/31 14502.17 14132.32
1995/06/30 14536.11 13884.49
1995/07/31 15393.17 14748.89
1995/08/31 15214.97 14186.27
1995/09/30 15325.29 14463.33
1995/10/31 15130.11 14074.55
1995/11/30 15359.23 14466.16
1995/12/31 15742.80 15049.00
1996/01/31 15786.65 15110.78
1996/02/29 15751.57 15161.87
1996/03/31 16014.68 15483.85
1996/04/30 16418.12 15934.01
1996/05/31 16435.66 15640.80
1996/06/30 16549.67 15728.83
1996/07/31 16163.77 15269.11
1996/08/31 16365.49 15302.57
1996/09/30 16760.16 15709.10
1996/10/31 16742.62 15548.34
1996/11/30 17575.80 16166.99
1996/12/31 17740.09 15959.02
1997/01/31 17603.98 15403.64
1997/02/28 17812.69 15659.34
1997/03/31 17812.69 15718.85
1997/04/30 17830.83 15805.30
1997/05/31 18720.11 16836.92
1997/06/30 19545.86 17767.99
1997/07/31 20044.94 18057.97
1997/08/31 18838.07 16711.75
1997/09/30 20044.94 17650.46
1997/10/31 18946.96 16298.25
1997/11/30 18874.37 16135.27
1997/12/31 19003.61 16279.04
1998/01/31 19177.25 17026.57
1998/02/28 20228.72 18122.23
1998/03/31 21309.13 18683.65
1998/04/30 21839.69 18834.62
1998/05/31 21791.45 18746.66
1998/06/30 21723.93 18891.95
1998/07/31 22129.08 19086.91
1998/08/31 18096.84 16725.67
1998/09/30 17942.50 16216.54
1998/10/31 19051.85 17910.68
1998/11/30 20190.13 18831.83
1998/12/31 20899.91 19578.32
1999/01/31 21219.75 19524.09
1999/02/28 20670.02 19062.34
1999/03/31 21549.59 19861.82
1999/04/30 22379.19 20669.79
1999/05/31 21379.68 19608.83
1999/06/30 22659.06 20376.71
1999/07/31 23518.64 20985.98
1999/08/31 24158.33 21066.14
1999/09/30 24828.01 21281.86
1999/10/31 26007.44 22082.48
1999/11/30 28406.28 22853.16
1999/12/31 32124.60 24907.66
2000/01/31 30587.74 23328.52
2000/02/29 33287.92 23960.48
2000/03/31 32540.83 24893.27
2000/04/28 30416.98 23586.87
IMATRL PRASUN SHR__CHT 20000430 20000530 153025 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was
invested in Fidelity International Growth & Income Fund on April 30,
1990. As the chart shows, by April 30, 2000, the value of the
investment would have grown to $30,417 - a 204.17% increase on the
initial investment. For comparison, look at how the Morgan Stanley
Capital International EAFE Index did over the same period. With
dividends and capital gains, if any, reinvested in each, the same
$10,000 would have grown to $23,587 - a 135.87% increase.
UNDERSTANDING PERFORMANCE
Many markets around the globe offer the
potential for significant growth over time;
however, investing in foreign markets means
assuming greater risks than investing in the
United States. Factors like changes in a
country's financial markets, its local political
and economic climate, and the fluctuating
value of its currency create these risks. For
these reasons an international fund's
performance may be more volatile than a fund
that invests exclusively in the United States.
Past performance is no guarantee of future
results and you may have a gain or loss when
you sell your shares.
(checkmark)
INTERNATIONAL GROWTH & INCOME
FUND TALK: THE MANAGER'S OVERVIEW
(PORTFOLIO MANAGER PHOTO)
An interview with
Bill Bower, Portfolio Manager of Fidelity International Growth &
Income Fund
Q. HOW DID THE FUND PERFORM, BILL?
A. The fund performed well. For the six-month period that ended April
30, 2000, the fund posted a total return of 16.95%. In comparison, the
Morgan Stanley Capital International Europe, Australasia, Far East
(EAFE) Index returned 6.81%. The fund also compares its performance
against the international funds average, tracked by Lipper Inc., which
returned 14.17% during the same period. For the 12-month period that
ended April 30, 2000, the fund returned 35.92%, while the Morgan
Stanley Capital International EAFE index and the international funds
average posted total returns of 14.11% and 24.75%, respectively.
Q. WHAT FACTORS LED TO THE FUND OUTPERFORMING ITS BENCHMARK INDEX AND
PEER GROUP?
A. About 90% of the fund's strong performance can be attributed to
favorable stock selection, particularly in the Japanese market. The
remainder came mainly from industry plays in the electronic
components, telecommunications and media segments, which benefited
from the growth of the Information Age and the increasing penetration
of the Internet throughout the world. Specifically, the fund's
Japanese and European electronics and telecommunications holdings were
especially strong contributors to performance. Media stocks also
posted strong gains, benefiting from the Internet's continuing demand
for content, as well as from the overall strengthening of the world's
major economies, which helped boost advertising rates for broadcasters
and publishers. The portfolio was underweighted in the financial
services sector, which helped soften the negative impact of rising
interest rates on the performance of European banks and insurers and,
in fact, had a positive effect on overall fund performance.
Q. DID YOU MAKE ANY SIGNIFICANT CHANGES IN INVESTMENT STRATEGY DURING
THE SIX-MONTH PERIOD?
A. Nothing major. Over the past 12 months, I've gradually shifted the
fund's geographic concentration more toward Japan, while shortening
positions slightly in the U.K. This was based mainly on the resurgence
of the technology segments of the Japanese economy, and I remain
comfortable with that overall geographic positioning. As I mentioned
earlier, I underweighted the portfolio in financial services stocks,
where prices have suffered from rising interest rates as well as from
concerns about the competitive pricing pressures of Internet banking.
I also maintained underweighted positions in the
non-telecommunications segment of the utilities sector, which are
generally slow-growth to no-growth industries, as well as in the
pharmaceuticals segment, where I had concerns about some valuations
being too high relative to their earnings projections.
Q. WHICH SPECIFIC STOCKS WERE THE MOST HELPFUL TO OVERALL FUND
PERFORMANCE?
A. There were a number of good names that contributed to performance,
rather than a few key "home runs." DDI Corp. and Kokusai Denshi Denwa
(KDD), two Japanese telecommunications companies recently involved in
a merger, provided a significant boost to fund performance. Ericsson
and Nokia, each big players in the mobile telephone industry and two
of the fund's top 10 holdings, also did very well, as did both
Mannesmann, a German cellular phone company, and Vodafone AirTouch,
the U.K. cellular firm that acquired Mannesmann during the period. The
new economy revolution, which drove stock prices through most of the
period, also helped Japanese component manufacturers Kyocera and
Furukawa Electronics make strong contributions to the fund. TF-1, the
largest commercial television operation in France, benefited from
strong growth in advertising revenues, which drove its earnings and
stock price higher. Philips Electronics, the Dutch firm, also turned
in strong performance.
Q. WE'VE TALKED A BIT ABOUT WHAT WORKED WELL FOR THE FUND. WHAT DIDN'T
WORK SO WELL? WHAT HOLDINGS WERE DISAPPOINTMENTS?
A. There weren't any consistent themes that detracted from performance
during the period. It was a pretty narrow market for much of the
period, led by the three major segments I talked about earlier -
technology, telecommunications and media. The fund was positioned to
take advantage of those positive trends, while limiting the downside
of more problematic trends elsewhere, such as the financial services
sector. There were disappointments, of course, but for the most part,
the problems were company-specific problems - or "blow-ups" as we
sometimes call them - which relate mainly to companies not delivering
on their earnings projections. Two such disappointments were Vendex, a
Dutch apparel retailer that had sluggish regional sales during the
period, and Hikari Tsushin, a Japanese cellular phone distributor that
had an earnings shortfall and also suffered as its Internet venture
capital division fell out of favor with investors who began to demand
real earnings over revenue models.
Q. WHAT'S YOUR OUTLOOK OVER THE NEXT SIX MONTHS, BILL?
A. Given the huge volatility in the markets during the last several
weeks of the period, I'd have to say that I'm a lot more guarded in my
outlook than I was six months ago. For the last 12 to 24 months, the
gathering strength of the new economy sectors drove strong
performance. But recently, based on investor concerns over high stock
valuations - particularly in these sectors - and the magnitude of
further upward pressure on interest rates, the markets have begun to
correct, and it is unclear where or when they will bottom out. It is
frustrating to see performance suffer as a result of the correction,
but it also is incredibly difficult and incredibly foolish to make
major moves during times of great volatility. In the short term, I
will be very selective in my stock picking. I'll look for names that I
like and where I'm very confident that earnings are sustainable. As a
practical matter, this may mean positioning the fund more in line with
the broader market and owning more of the traditional old economy
stocks than I have in the recent past. Longer term, I will continue to
focus on owning what I think are the best companies, with the most
promising growth, value and income potential, in the industries that
are represented in the fund's international benchmark index.
BILL BOWER COMMENTS ON THE DIFFICULTIES
OF MANAGING THROUGH PERIODS OF HIGH
MARKET VOLATILITY:
"I try not to panic and get caught up in the emotion of
investing, which can be easier said than done when
you're watching some of your favorite stocks taking a
beating. High turnover and rapid change in stock and
industry selection is not the way the fund is run. I believe
it's easier to get mid- to long-term stock and industry
fundamentals right as opposed to guessing the short-term
direction of the stock market. So unless fundamentals,
valuation or management dramatically change, the fund's
positioning generally won't.
"I avoid the urge to purge or concentrate holdings. To me,
portfolio structure is an ongoing event, not something that
happens over a matter of days because the market has
turned volatile. The way I view it is, the analysis that goes
into portfolio structure is an ongoing process that
incorporates a longer-term, bottom-up time horizon than
the hourly, daily or weekly horizon that the market seems
focused on today.
"I stick to investment discipline and process. The fund
invests primarily in companies and industries that generate
predictable earnings and cash flow growth at a reasonable
valuation. In addition, we try to find strong management
teams whose interest is aligned with shareholders. Fidelity's
local research departments play an integral part in the
investment process.
"I also try to identify changes in long-term market sentiment
toward industry sectors. Often market corrections and/or
volatility are the result of overvaluation or overestimated
fundamentals for market leading sectors. The difficult
task is to identify the latter trend early on because it affects
the former. For example, I believe that the market today
may no longer be willing to fund some of the concept-driven
Internet ventures, and that the stock prices of many of
these companies may never recover. I also believe that the
market is coming back to some of the old economy stocks,
particularly those where there is a reasonable valuation to
earnings ratio."
FUND FACTS
GOAL: growth of capital and current
income by investing mainly in foreign stocks
FUND NUMBER: 305
TRADING SYMBOL: FIGRX
START DATE: December 31, 1986
SIZE: as of April 30, 2000, more than $1.4
billion
MANAGER: Bill Bower, since 1998; international
equity analyst, 1996-1998; manager, Fidelity
Select Construction & Housing Portfolio,
1994-1996; joined Fidelity in 1994
(checkmark)
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER AND DO NOT NECESSARILY REPRESENT THE VIEWS OF FIDELITY OR
ANY OTHER PERSON IN THE FIDELITY ORGANIZATION. ANY SUCH VIEWS ARE
SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS
AND FIDELITY DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE
VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS FOR A FIDELITY FUND ARE BASED ON NUMEROUS
FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON
BEHALF OF ANY FIDELITY FUND.
RICK MACE ON OVERSEAS INVESTING OPPORTUNITIES:
"Two important new trends in overseas investing helped fuel
the strong performance of international equities during the
past year - an increasing focus on maximizing shareholder
value and a significant global shift to equities as an investor's
major retirement savings vehicle. For U.S. investors, these
trends should make a compelling case for investing a portion
of your portfolio overseas.
"First, more company executives overseas are placing an
emphasis on getting the stock prices of their firms higher.
The increasing number of corporate announcements from
international companies detailing restructuring efforts and
mergers and acquisitions is evidence of this trend. Increased
competition from abroad has forced industry consolidation to
the forefront of corporate boardrooms. In the third quarter of
1999, Europe outpaced the U.S. in merger-and- acquisition
activity for the first time in seven years. Examples of this
global trend, which spans a broad number of sectors, include:
the U.K.-based Vodafone's $66 billion merger with U.S.-based
AirTouch; the U.K.-based Cable & Wireless PLC's bid to acquire
IDC, a Japanese telecom company; and Renault of France's
purchase of a 36.8% stake in Nissan. This increase in
merger- and-acquisition activity underscores a common
goal of many companies to improve the bottom line by
becoming a bigger presence globally and reducing costs
through economies of scale. What's more, compensation
packages for management teams are changing to better
reflect shareholders' interests.
"Second, it is likely that equities will begin to play a much
more prominent role in the future savings of European
investors. Compared to Americans, European investors
put a smaller percentage of retirement assets in equity
investments. In Japan, for instance, there is no retirement
savings equivalent to the U.S.' 401(k) plan. However,
Japanese investors historically have maintained among the
highest savings rates in the world, but have opted for lower
interest-yielding, government-sponsored savings accounts.
A number of recent factors - deregulation of the Japanese
financial services industry, limited funded private pension
systems and legislation to encourage new retirement vehicles
- should foster increased investment in equities going
forward and ultimately drive prices higher."
INTERNATIONAL GROWTH & INCOME
INVESTMENT CHANGES
AS OF APRIL 30, 2000
Finland 3.0%
United States 9.8%
Row: 1, Col: 1, Value: 3.0
Row: 1, Col: 2, Value: 9.1
Row: 1, Col: 3, Value: 5.3
Row: 1, Col: 4, Value: 21.6
Row: 1, Col: 5, Value: 5.9
Row: 1, Col: 6, Value: 21.0
Row: 1, Col: 7, Value: 4.5
Row: 1, Col: 8, Value: 3.9
Row: 1, Col: 9, Value: 15.9
Row: 1, Col: 10, Value: 9.800000000000001
France 9.1%
United Kingdom 15.9%
Germany 5.3%
Switzerland 3.9%
Japan 21.6%
Sweden 4.5%
Netherlands 5.9%
Other 21.0%
GEOGRAPHIC DIVERSIFICATION (%
OF FUND'S NET ASSETS)
AS OF OCTOBER 31, 1999
Australia 2.4%
United States 8.8%
Row: 1, Col: 1, Value: 2.4
Row: 1, Col: 2, Value: 2.2
Row: 1, Col: 3, Value: 9.1
Row: 1, Col: 4, Value: 6.9
Row: 1, Col: 5, Value: 25.8
Row: 1, Col: 6, Value: 7.2
Row: 1, Col: 7, Value: 14.6
Row: 1, Col: 8, Value: 5.0
Row: 1, Col: 9, Value: 18.0
Row: 1, Col: 10, Value: 8.800000000000001
Finland 2.2%
France 9.1%
United Kingdom 18.0%
Germany 6.9%
Switzerland 5.0%
Japan 25.8%
Other 14.6%
Netherlands 7.2%
<TABLE>
<CAPTION>
<S> <C> <C>
ASSET ALLOCATION
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Stocks 92.9 91.9
Bonds 0.3 0.3
Short-Term Investments and 6.8 7.8
Net Other Assets
TOP TEN STOCKS BY ISSUER AS
OF APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Vodafone AirTouch PLC 3.6 2.8
(United Kingdom, Cellular)
Nokia AB (Finland, 3.0 1.6
Communications Equipment)
Telefonaktiebolaget LM 2.5 1.0
Ericsson (Sweden,
Communications Equipment)
TotalFinaElf SA (France, Oil 2.4 2.4
& Gas)
Furukawa Electric Co. Ltd. 1.9 0.7
(Japan, Electrical Equipment)
Kyocera Corp. (Japan, 1.7 1.3
Electronics)
NTT DoCoMo, Inc. (Japan, 1.4 0.9
Cellular)
DDI Corp. (Japan, Telephone 1.3 2.1
Services)
Telefonica SA (Spain, 1.3 0.9
Telephone Services)
Samsung Electronics Co. Ltd. 1.2 0.5
(Korea (South), Electronics)
20.3 14.2
TOP TEN MARKET SECTORS AS OF
APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Technology 22.8 11.4
Utilities 16.2 16.0
Finance 12.9 19.6
Industrial Machinery & 7.7 4.9
Equipment
Media & Leisure 7.4 5.5
Health 6.2 6.8
Energy 5.1 5.5
Durables 3.8 4.2
Services 2.9 4.6
Retail & Wholesale 2.5 3.8
</TABLE>
INTERNATIONAL GROWTH & INCOME
INVESTMENTS APRIL 30, 2000 (UNAUDITED)
Showing Percentage of Net Assets
COMMON STOCKS - 92.6%
SHARES VALUE (NOTE 1)
AUSTRALIA - 1.2%
Australia & New Zealand 425,308 $ 2,940,566
Banking Group Ltd.
Cable & Wireless Optus Ltd. 1,200,700 3,877,353
(a)
News Corp. Ltd. sponsored ADR 177,500 9,130,156
Perpetual Trustees Australia 17,900 256,091
Ltd.
Westfield Holdings Ltd. 130,100 710,337
16,914,503
BELGIUM - 0.3%
Melexis NV (a) 5,000 80,225
Telinfo SA 38,000 4,294,752
4,374,977
BRAZIL - 0.2%
Embratel Participacoes SA ADR 25,000 562,500
Telesp Celular Participacoes 42,900 1,892,963
SA ADR
2,455,463
BRITISH VIRGIN ISLANDS - 0.1%
El Sitio, Inc. 100,000 1,075,000
CANADA - 2.1%
BCE, Inc. 37,600 4,354,673
Bracknell Corp. (a) 100,000 438,952
C-Mac Industries, Inc. (a) 121,500 6,153,768
Celestica, Inc. (sub. vtg.) 100,800 5,438,898
(a)
Cinar Films, Inc. Class B 304,400 1,065,400
(sub. vtg.) (a)
Prudential Steel Ltd. 100,000 1,019,719
Talisman Energy, Inc. (a) 224,000 6,678,552
Telesystem International 150,000 4,963,533
Wireless, Inc. (sub. vtg.)
(a)
30,113,495
DENMARK - 0.6%
2M Invest AS (a) 8,200 1,301,540
Falck AS 20,000 2,771,571
Novo-Nordisk AS (B Shares) 32,900 4,418,642
8,491,753
FINLAND - 3.0%
Nokia AB 100,400 5,710,250
Nokia AB sponsored ADR 639,600 36,377,245
42,087,495
FRANCE - 9.1%
Access Commerce SA 3,900 231,053
Altran Technologies SA 3,300 676,150
AXA SA de CV 76,200 11,327,701
Banque Nationale de Paris 112,215 9,092,546
(BNP)
Banque Nationale de Paris 12,155 69,242
(BNP) warrants 7/1/02 (a)
Canal Plus SA 11,100 2,144,824
Clarins SA 22,750 2,260,168
Elior (a) 396,700 4,328,019
SHARES VALUE (NOTE 1)
France Telecom SA 87,300 $ 13,542,743
Havas Advertising SA 7,000 3,502,702
Integra SA (a) 50,000 1,134,755
NRJ SA 6,970 4,523,198
Rhodia SA 94,900 1,764,531
Sagem SA 1,428 1,780,521
Sanofi-Synthelabo SA 129,600 4,848,987
Schneider SA 13,600 892,492
Suez Lyonnaise des Eaux 26,100 4,103,576
Television Francaise 1 SA 13,422 9,211,812
TotalFinaElf SA:
Class B 149,644 22,633,654
sponsored ADR 149,400 11,298,375
Transiciel SA 20,000 2,676,017
Vivendi SA 166,254 16,486,704
128,529,770
GERMANY - 5.0%
ACG AG 4,950 1,195,414
Allianz AG (Reg.) 10,200 3,935,331
Altana AG 52,000 3,767,934
Apcoa Parking AG 13,370 974,887
BASF AG 80,200 3,515,297
EM.TV & Merchandising AG 62,000 4,803,342
Epcos AG 100,000 14,127,475
GFK AG 3,280 131,690
Hugo Boss AG 19,690 2,512,503
Intershop Communication AG (a) 9,700 4,323,016
Jobs & Adverts AG (a) 1,688 35,386
Kamps AG 122,000 4,025,328
Munich Reinsurance AG (Reg.) 11,300 3,321,552
Openshop Holding AG (a)(d) 1,900 112,477
Primacom AG (a) 79,600 6,130,595
Siemens AG 95,400 14,173,230
United Internet AG (a) 15,200 3,920,693
71,006,150
HONG KONG - 2.9%
China Telecom Ltd. (a) 1,370,000 10,048,094
Giordano International Ltd. 1,022,000 1,672,915
Hutchison Whampoa Ltd. 541,000 7,883,260
Johnson Electric Holdings 925,600 7,456,754
Ltd.
Legend Holdings Ltd. 3,602,000 4,185,092
Li & Fung Ltd. 1,320,000 5,100,974
Sun Hung Kai Properties Ltd. 320,000 2,536,878
Yue Yuen Industrial Holdings 1,224,000 2,671,425
Ltd.
41,555,392
HUNGARY - 0.1%
Matav RT sponsored ADR 35,700 1,242,806
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
INDIA - 0.2%
Infosys Technologies Ltd. 13,286 $ 2,465,443
Pentamedia Graphics Ltd. 36,743 534,941
Pentamedia Graphics Ltd. New 11,857 172,626
3,173,010
IRELAND - 0.6%
Bank of Ireland, Inc. 425,400 2,869,208
Elan Corp. PLC sponsored ADR 113,600 4,870,600
(a)
Ryanair Holdings PLC 19,200 782,400
sponsored ADR (a)
8,522,208
ISRAEL - 0.2%
Bezeq Israeli 290,000 1,539,219
Telecommunication Corp.
Ltd.
Teva Pharmaceutical 42,800 1,883,200
Industries Ltd. ADR
3,422,419
ITALY - 2.0%
Banca di Roma Spa 558,400 590,895
Banca Intesa Spa 925,000 3,451,616
Eni Spa 490,800 2,437,106
Luxottica Group Spa sponsored 100,000 2,387,500
ADR
Olivetti & Co. Spa (a) 1,527,316 5,039,301
San Paolo Imi Spa 178,300 2,509,178
Telecom Italia Mobile Spa 418,800 4,009,919
Telecom Italia Spa 454,240 6,489,953
Unicredito Italiano Spa 326,500 1,341,231
28,256,699
JAPAN - 21.6%
Asatsu-DK, Inc. 60,000 2,474,570
Canon, Inc. 110,000 5,108,125
Daiwa Securities Group, Inc. 642,000 9,795,635
DDI Corp. 1,634 18,736,453
Dentsu Tec, Inc. 13,500 1,547,993
FamilyMart Co. Ltd. 15,000 549,288
Fuji Television Network, Inc. 152 2,530,054
Fujitsu Ltd. 269,000 7,611,799
Fujitsu Support & Service, 4,000 591,825
Inc. (FSAS)
Fujitsu Support & Service, 4,000 591,825
Inc. (FSAS) New
Funai Electric Co. Ltd. 3,000 1,664,509
Furukawa Electric Co. Ltd. 1,982,000 27,473,812
Hikari Tsushin, Inc. 7,000 1,009,802
Hirose Electric Co. Ltd. 3,900 471,001
Hitachi Information Systems 40,000 1,549,843
Co. Ltd.
Hoya Corp. 59,000 6,001,480
Ito-Yokado Co. Ltd. 46,000 3,356,205
ITOCHU TECHNO-SCIENCE Corp. 2,900 2,308,951
(CTC)
JAC Co. Ltd. 11,700 844,988
JAC Co. Ltd. New 7,200 519,993
Kansai Maintenance Corp. 41,000 276,771
KDD Corp. 76,900 8,903,163
Kyocera Corp. 148,300 24,627,069
SHARES VALUE (NOTE 1)
Lion Corp. 414,000 $ 1,703,625
Mitsubishi Electric Corp. 612,000 5,223,562
Mitsumi Electric Co. Ltd. 57,000 2,350,841
Murata Manufacturing Co. Ltd. 28,000 5,437,396
NEC Corp. 222,000 6,035,510
Nichicon Corp. 373,000 10,002,774
Nikko Securities Co. Ltd. 554,000 6,531,811
Nippon Sheet Glass Co. Ltd. 327,000 2,902,904
Nippon Television Network 370 273,719
Corp. (a)
Nomura Securities Co. Ltd. 234,000 5,885,704
NTT DoCoMo, Inc. 260 8,679,490
NTT DoCoMo, Inc. (d) 334 11,149,806
Omron Corp. 364,000 9,896,061
ORIX Corp. 65,280 9,308,467
Rohm Co. Ltd. 9,900 3,314,037
Sanyo Electric Co. Ltd. 1,291,000 8,607,463
Secom Co. Ltd. 61,000 5,110,597
Softbank Corp. 7,900 1,943,222
Softbank Corp. New 15,800 3,886,443
Sony Corp. 23,600 2,662,375
Sony Corp. New 23,600 2,662,375
Takeda Chemical Industries 200,000 13,149,621
Ltd.
Terumo Corp. 61,000 1,844,553
Tokai Corp. 375,000 4,126,595
Toko, Inc. 700,000 5,825,781
Tokyo Broadcasting System, 95,000 4,128,907
Inc.
Tokyo Denpa Co. Ltd. 15,400 1,028,186
Tokyo Seimitsu Co. Ltd. 27,000 2,821,343
Tokyo Tomin Bank Ltd. 232,000 7,294,248
Toyo Communication Equipment 217,000 4,514,981
Co. Ltd.
Toyoda Gosei Co. Ltd. 120,000 6,935,454
Toyota Motor Corp. 144,000 7,195,500
Union Tool Co. 13,300 1,803,015
Yokogawa Electric Corp. 397,000 3,028,713
305,810,233
KOREA (SOUTH) - 1.8%
Samsung Electro-Mechanics Co. 87,200 5,932,508
Samsung Electronics Co. Ltd. 63,157 17,073,308
Trigem Computer, Inc. 49,100 2,836,054
25,841,870
LUXEMBOURG - 0.9%
Audiofina 38,825 4,794,945
Societe Europeen Des 14,000 2,132,565
Satellite unit
Stolt Comex Seaway SA (a) 486,770 5,871,663
12,799,173
MARSHALL ISLANDS - 0.5%
Teekay Shipping Corp. 215,100 7,057,969
MEXICO - 2.1%
Grupo Radio Centro SA de CV 332,600 4,656,400
sponsored ADR
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
MEXICO - CONTINUED
Grupo Televisa SA de CV 114,200 $ 7,244,563
sponsored ADR (a)
Telefonos de Mexico SA de CV 85,000 4,999,063
Series L sponsored ADR
Tubos de Acero de Mexico SA 100,000 1,493,750
sponsored ADR
TV Azteca SA de CV sponsored 1,004,600 11,050,600
ADR
29,444,376
NETHERLANDS - 5.9%
Akzo Nobel NV 111,500 4,576,249
Beter Bed Holding NV 86,600 2,912,575
Equant NV (NY Shares) (a) 83,700 6,528,600
Exact Holdings NV (a) 180,790 10,216,425
Fugro NV 60,300 2,830,462
Grand Hotel Krasnapolsky NV 31,500 2,293,983
Gucci Group NV (NY Shares) 40,000 3,505,000
ICT Automatisering NV 26,200 1,059,078
ING Groep NV (Certificaten 234,222 12,813,168
Van Aandelen)
Koninklijke Ahold NV 191,155 4,468,954
Koninklijke Philips 349,068 15,577,160
Electronics NV (NY Shares)
Meta4 NV (a) 126,400 1,440,091
Nutreco Holding NV 94,400 3,678,248
Unit 4 NV (a) 85,300 4,314,941
United Pan-Europe 34,900 1,273,338
Communications NV (a)
Vendex KBB NV 153,800 2,376,068
VNU NV 62,700 3,363,155
Wegener NV 31,700 489,736
83,717,231
NORWAY - 0.6%
DNB Holding ASA 542,100 1,903,775
Eltek ASA 86,200 1,344,894
Opticom ASA (a) 9,400 993,496
Tandberg ASA (a) 157,100 2,407,151
VMETRO ASA 218,200 2,025,534
8,674,850
PERU - 0.1%
Telefonica del Peru SA ADR 114,300 1,728,788
SINGAPORE - 0.5%
Chartered Semiconductor 20,000 1,747,500
Manufacturing Ltd.
Datacraft Asia Ltd. 400,000 3,000,000
Oversea-Chinese Banking Corp. 136,500 935,863
Ltd.
Overseas Union Bank Ltd. 244,959 1,119,649
United Overseas Bank Ltd. 135,168 942,572
7,745,584
SOUTH AFRICA - 0.2%
Impala Platinum Holdings Ltd. 85,500 2,707,290
SHARES VALUE (NOTE 1)
SPAIN - 2.1%
Banco Santander Central 583,960 $ 6,104,911
Hispano SA
Cortefiel SA 147,200 3,112,638
Grupo Acciona SA 19,400 786,855
Telefonica SA (a) 820,112 18,298,582
Transportes Azkar SA 92,032 1,258,239
29,561,225
SWEDEN - 4.5%
ABB Ltd. (Sweden) 57,000 6,383,837
Elanders AB (B Shares) 79,900 2,559,291
Entra Data AB (A Shares) 50,000 1,595,959
Framtidsfabriken AB (a) 134,700 2,217,644
Information Highway AB (a) 409,500 4,219,380
Nobel Biocare AB 133,000 3,574,948
Nocom AB (B Shares) (a) 50,000 895,977
Saab AB (B Shares) 94,300 770,977
Securitas AB (B Shares) 67,500 1,753,875
Svenska Handelsbanken AB (A 144,000 1,911,119
Shares)
Telefonaktiebolaget LM 398,600 35,251,188
Ericsson (B Shares)
TV 4 AB (A Shares) 122,600 3,364,058
64,498,253
SWITZERLAND - 3.9%
Bank Sarasin & Compagnie 2,281 6,156,975
Series B (Reg.)
Credit Suisse Group (Reg.) 44,600 8,081,966
Fantastic Corp. (a) 110,000 2,015,216
Julius Baer Holding AG 1,000 3,507,853
Nestle SA (Reg.) 7,563 13,374,939
PubliGroupe SA 2,770 2,143,165
Tecan AG 6,200 5,359,628
The Swatch Group AG:
(Bearer) 1,081 1,162,122
(Reg.) 20,000 4,525,887
UBS AG 26,450 6,500,945
Valora Holding AG 9,100 2,371,611
55,200,307
TAIWAN - 1.3%
Macronix International Co. 629,000 1,901,700
Ltd. (a)
Procomp Informatics Co. Ltd. 237,000 1,859,127
Taiwan Semiconductor 1,538,250 9,904,731
Manufacturing Co. Ltd. (a)
United Microelectronics Corp. 1,201,000 4,062,870
17,728,428
UNITED KINGDOM - 15.9%
Abbey National PLC 207,100 2,353,454
Alliance & Leicester PLC 331,500 3,277,881
Allied Zurich PLC 644,300 6,380,865
Amvescap PLC 340,400 4,910,014
Ashtead Group PLC 977,100 1,396,491
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
UNITED KINGDOM - CONTINUED
AstraZeneca Group PLC (United 132,000 $ 5,560,500
Kingdom)
Bodycote International PLC 535,550 2,059,143
BP Amoco PLC 1,646,674 13,996,739
British Aerospace PLC 357,079 2,185,606
Cable & Wireless PLC ADR 184,600 9,114,625
Capital Radio PLC 53,700 1,230,489
Carlton Communications PLC 273,500 3,288,589
Centrica PLC 1,027,500 3,639,384
Computacenter PLC 457,400 7,212,295
Energis PLC (a) 61,500 3,027,671
FKI PLC 359,000 1,362,198
Geest PLC 245,700 1,927,560
Glaxo Wellcome PLC 221,200 6,947,064
Granada Group PLC 409,900 3,986,241
HSBC Holdings PLC (Reg.) 195,600 2,237,176
Iceland Group PLC 1,137,000 5,007,544
Independent Energy Holdings 26,800 999,211
PLC (a)
Independent Energy Holdings 61,900 2,414,100
PLC sponsored ADR (a)
Jazztel PLC sponsored ADR 74,600 3,879,200
Laporte PLC Series B (a) 1,392,000 10,812
Lloyds TSB Group PLC 283,800 2,768,747
Misys PLC 152,000 1,730,848
Nestor Healthcare Group PLC 50,000 334,003
Prudential Corp. PLC 364,200 5,578,637
Reuters Group PLC 326,500 5,827,932
Royal Bank of Scotland Group 649,150 10,049,249
PLC
Safeway PLC 314,100 1,056,421
Scottish Radio Holdings PLC 200,000 4,256,590
Sema Group PLC 155,900 2,499,408
Shanks Group PLC 250,000 598,081
Shell Transport & Trading Co. 1,826,100 14,684,878
PLC (Reg.)
Smith & Nephew PLC 1,130,600 3,249,316
SmithKline Beecham PLC 472,300 6,494,124
SSL International PLC 661,900 6,709,407
Standard Chartered PLC 154,900 2,071,886
Taylor Nelson Sofres PLC 565,800 2,178,088
Tempus Group PLC 58,600 444,251
The Go-Ahead Group PLC 193,000 1,338,721
Triad Group PLC 122,400 494,386
Vodafone AirTouch PLC 6,791,981 31,922,348
Vodafone AirTouch PLC 388,900 18,278,300
sponsored ADR
Williams PLC Class L 801,100 4,511,345
225,481,818
SHARES VALUE (NOTE 1)
UNITED STATES OF AMERICA - 3.0%
AES Corp. (a) 50,000 $ 4,496,875
AFLAC, Inc. 140,900 6,877,681
Impsat Fiber Networks, Inc. 153,400 2,425,638
Pharmacia Corp. 71,347 3,562,891
Phelps Dodge Corp. 50,000 2,312,500
Schering-Plough Corp. 172,000 6,933,750
SCM Microsystems, Inc. (a) 40,000 3,165,000
Synthes-Stratec, Inc. 1,600 683,188
Synthes-Stratec, Inc. (d) 5,466 2,331,974
TeraBeam Networks (e) 1,100 16,500
UnitedGlobalCom, Inc. (a) 43,200 2,295,000
Warner-Lambert Co. 70,000 7,966,875
43,067,872
VENEZUELA - 0.1%
Compania Anonima Nacional 50,000 1,450,000
Telefono de Venezuela
sponsored ADR
TOTAL COMMON STOCKS 1,313,736,407
(Cost $993,259,219)
CONVERTIBLE PREFERRED STOCKS
- 0.3%
AUSTRALIA - 0.3%
National Australia Bank Ltd. 76,800 1,915,200
$1.9687 EXCAPS
WBK STRYPES Trust (Westpac 55,000 1,650,000
Banking Corp.) $3.135
TOTAL CONVERTIBLE PREFERRED 3,565,200
STOCKS
(Cost $3,718,940)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
CORPORATE BONDS - 0.3%
MOODY'S RATINGS (UNAUDITED) (F) PRINCIPAL AMOUNT (C)
CONVERTIBLE BONDS - 0.0%
GERMANY - 0.0%
Kamps AG euro 0% 3/17/15 BB+ EUR 994,000 445,969
NONCONVERTIBLE BONDS - 0.3%
GERMANY - 0.3%
Brokat Infosystems AG euro B2 EUR 5,000,000 4,397,746
11.5% 3/31/10
UNITED KINGDOM - 0.0%
British Aerospace PLC 7.45% - GBP 22,386 33,733
11/30/03
TOTAL NONCONVERTIBLE BONDS 4,431,479
TOTAL CORPORATE BONDS 4,877,448
(Cost $5,321,176)
</TABLE>
CASH EQUIVALENTS - 11.3%
SHARES VALUE (NOTE 1)
Central Cash Collateral Fund, 64,386,964 $ 64,386,964
5.94% (b)
Taxable Central Cash Fund, 95,722,403 95,722,403
5.77% (b)
TOTAL CASH EQUIVALENTS 160,109,367
(Cost $160,109,367)
TOTAL INVESTMENT PORTFOLIO - 1,482,288,422
104.5%
(Cost $1,162,408,702)
NET OTHER ASSETS - (4.5)% (63,982,151)
NET ASSETS - 100% $ 1,418,306,271
SECURITY TYPE ABBREVIATIONS
EXCAPS - Exchangeable Capital Units
STRYPES - Structured Yield Product
Exchangeable for Common Stock
CURRENCY ABBREVIATIONS
EUR - European Monetary Unit
GBP - British pound
LEGEND
(a) Non-income producing
(b) The rate quoted is the annualized seven-day yield of the fund at
period end.
(c) Principal amount is stated in United States dollars unless
otherwise noted.
(d) Security exempt from registration under Rule 144A of the
Securities
Act of 1933. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At the
period end, the value of these securities amounted to $13,594,257 or
1.0% of net assets.
(e) Restricted securities - Investment in securities not registered
under the Securities Act of 1933.
Additional information on each holding is as follows:
SECURITY ACQUISITION DATE ACQUISITION COST
TeraBeam Networks 4/7/00 $ 16,500
(f) S&P credit ratings are used in the absence of a rating by Moody's
Investors Service, Inc.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $745,420,347 and $603,048,274, respectively.
The fund placed a portion of its portfolio transactions with brokerage
firms which are affiliates of Fidelity Management & Research Company.
The commissions paid to these affiliated firms were $24,546 for the
period.
The fund invested in securities that are not registered under the
Securities Act of 1933. These securities are subject to legal or
contractual restrictions on resale. At the end of the period,
restricted securities (excluding Rule 144A issues) amounted to $16,500
and 0% of net assets.
The fund participated in the security lending program. At period end,
the value of securities loaned amounted to $64,741,644. The fund
received cash collateral of $64,386,964 which was invested in cash
equivalents and U.S. Treasury Obligations valued at $3,333,261.
INCOME TAX INFORMATION
At April 30, 2000, the aggregate cost of investment securities for
income tax purposes was $1,164,105,696. Net unrealized appreciation
aggregated $318,182,726, of which $397,888,425 related to appreciated
investment securities and $79,705,699 related to depreciated
investment securities.
INTERNATIONAL GROWTH & INCOME
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000 (UNAUDITED)
ASSETS
Investment in securities, at $ 1,482,288,422
value (cost $1,162,408,702)
- See accompanying schedule
Foreign currency held at 6,486,303
value (cost $6,512,732)
Receivable for investments 13,809,081
sold
Receivable for fund shares 2,079,752
sold
Dividends receivable 3,224,637
Interest receivable 477,702
Other receivables 77,233
TOTAL ASSETS 1,508,443,130
LIABILITIES
Payable for investments $ 16,720,763
purchased
Payable for fund shares 7,574,298
redeemed
Accrued management fee 869,784
Other payables and accrued 585,050
expenses
Collateral on securities 64,386,964
loaned, at value
TOTAL LIABILITIES 90,136,859
NET ASSETS $ 1,418,306,271
Net Assets consist of:
Paid in capital $ 1,011,089,729
Distributions in excess of (4,933,818)
net investment income
Accumulated undistributed net 92,470,549
realized gain (loss) on
investments and foreign
currency transactions
Net unrealized appreciation 319,679,811
(depreciation) on
investments and assets and
liabilities in foreign
currencies
NET ASSETS, for 49,762,007 $ 1,418,306,271
shares outstanding
NET ASSET VALUE, offering $28.50
price and redemption price
per share ($1,418,306,271
(divided by) 49,762,007
shares)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30,
2000 (UNAUDITED)
INVESTMENT INCOME $ 6,203,341
Dividends
Interest 1,750,420
Security lending 217,944
8,171,705
Less foreign taxes withheld (666,774)
TOTAL INCOME 7,504,931
EXPENSES
Management fee $ 4,992,170
Transfer agent fees 1,637,207
Accounting and security 340,003
lending fees
Non-interested trustees' 3,251
compensation
Custodian fees and expenses 327,726
Registration fees 126,239
Audit 19,127
Legal 20,014
Miscellaneous 1,398
Total expenses before 7,467,135
reductions
Expense reductions (165,453) 7,301,682
NET INVESTMENT INCOME 203,249
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities 95,123,328
Foreign currency transactions (167,522) 94,955,806
Change in net unrealized
appreciation (depreciation)
on:
Investment securities 89,335,003
Assets and liabilities in (19,548) 89,315,455
foreign currencies
NET GAIN (LOSS) 184,271,261
NET INCREASE (DECREASE) IN $ 184,474,510
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION
Deferred sales charges $ 2,594
withheld by FDC
Expense reductions $ 118,073
Directed brokerage
arrangements
Custodian credits 4,710
Transfer agent credits 42,670
$ 165,453
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
INCREASE (DECREASE) IN NET SIX MONTHS ENDED APRIL 30, YEAR ENDED OCTOBER 31, 1999
ASSETS 2000 (UNAUDITED)
Operations Net investment $ 203,249 $ 6,176,575
income
Net realized gain (loss) 94,955,806 93,532,876
Change in net unrealized 89,315,455 185,705,690
appreciation (depreciation)
NET INCREASE (DECREASE) IN 184,474,510 285,415,141
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (9,206,847) (3,606,738)
From net investment income
In excess of net investment (4,933,818) -
income
From net realized gain (64,276,752) (25,246,859)
TOTAL DISTRIBUTIONS (78,417,417) (28,853,597)
Share transactions Net 931,425,933 1,147,448,319
proceeds from sales of shares
Reinvestment of distributions 75,635,936 27,912,115
Cost of shares redeemed (774,868,027) (1,169,631,401)
NET INCREASE (DECREASE) IN 232,193,842 5,729,033
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) 338,250,935 262,290,577
IN NET ASSETS
NET ASSETS
Beginning of period 1,080,055,336 817,764,759
End of period (including $ 1,418,306,271 $ 1,080,055,336
under (over) distribution of
net investment income of
$(4,933,818) and
$12,563,275, respectively)
OTHER INFORMATION
Shares
Sold 31,809,946 51,495,526
Issued in reinvestment of 2,801,332 1,401,210
distributions
Redeemed (26,364,723) (52,786,044)
Net increase (decrease) 8,246,555 110,692
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SIX MONTHS ENDED APRIL 30, 2000 YEARS ENDED OCTOBER 31,
SELECTED PER-SHARE DATA (UNAUDITED) 1999 1998 1997 1996
Net asset value, beginning
of $ 26.02 $ 19.75 $ 20.88 $ 19.09 $ 17.83
period
Income from Investment
Operations
Net investment income .00 D .15 D .34 D .48 D, F .54
Net realized and unrealized 4.31 6.84 (.22) G 1.97 1.32
gain (loss)
Total from investment 4.31 6.99 .12 2.45 1.86
operations
Less Distributions
From net investment income (.21) (.09) (.37) (.29) (.60)
In excess of net investment (.12) - - - -
income
From net realized gain (1.50) (.63) (.88) (.37) -
Total distributions (1.83) (.72) (1.25) (.66) (.60)
Net asset value, end of
period $ 28.50 $ 26.02 $ 19.75 $ 20.88 $ 19.09
TOTAL RETURN B, C 16.95% 36.51% .55% 13.17% 10.66%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 1,418,306 $ 1,080,055 $ 817,765 $ 1,067,169 $ 1,007,076
(000 omitted)
Ratio of expenses to average 1.10% A 1.13% 1.17% 1.17% 1.16%
net assets
Ratio of expenses to average 1.08% A, E 1.10% E 1.13% E 1.15% E 1.14% E
net assets after expense
reductions
Ratio of net investment .03% A .69% 1.62% 2.33% 2.76%
income to average net assets
Portfolio turnover rate 95% A 94% 143% 70% 95%
A ANNUALIZED
B THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C TOTAL RETURNS FOR PERIODS
OF LESS THAN ONE YEAR ARE
NOT ANNUALIZED.
D NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES
OUTSTANDING DURING THE PERIOD.
E FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
F INVESTMENT INCOME PER SHARE
REFLECTS A SPECIAL DIVIDEND
WHICH AMOUNTED TO $.05 PER
SHARE.
G THE AMOUNT SHOWN FOR A
SHARE OUTSTANDING DOES NOT
CORRESPOND WITH THE
AGGREGATE NET GAIN ON
INVESTMENTS FOR THE PERIOD
DUE TO THE TIMING OF SALES
AND REPURCHASES OF FUND
SHARES IN RELATION TO
FLUCTUATING MARKET VALUES OF
THE INVESTMENTS OF THE FUND.
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA 1995
Net asset value, beginning of $ 17.54
period
Income from Investment
Operations
Net investment income .54
Net realized and unrealized .28
gain (loss)
Total from investment .82
operations
Less Distributions
From net investment income (.21)
In excess of net investment -
income
From net realized gain (.32)
Total distributions (.53)
Net asset value, end of period $ 17.83
TOTAL RETURN B, C 4.95%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 903,235
(000 omitted)
Ratio of expenses to average 1.18%
net assets
Ratio of expenses to average 1.18%
net assets after expense
reductions
Ratio of net investment 2.98%
income to average net assets
Portfolio turnover rate 141%
A ANNUALIZED
B THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C TOTAL RETURNS FOR PERIODS
OF LESS THAN ONE YEAR ARE
NOT ANNUALIZED.
D NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES
OUTSTANDING DURING THE PERIOD.
E FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
F INVESTMENT INCOME PER SHARE
REFLECTS A SPECIAL DIVIDEND
WHICH AMOUNTED TO $.05 PER
SHARE.
G THE AMOUNT SHOWN FOR A
SHARE OUTSTANDING DOES NOT
CORRESPOND WITH THE
AGGREGATE NET GAIN ON
INVESTMENTS FOR THE PERIOD
DUE TO THE TIMING OF SALES
AND REPURCHASES OF FUND
SHARES IN RELATION TO
FLUCTUATING MARKET VALUES OF
THE INVESTMENTS OF THE FUND.
</TABLE>
DIVERSIFIED INTERNATIONAL
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value). If Fidelity had not reimbursed certain fund
expenses, the life of fund total returns would have been lower.
CUMULATIVE TOTAL RETURNS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PERIODS ENDED OCTOBER 31, 1994 PAST 6 MONTHS PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
FIDELITY DIVERSIFIED 17.28% 31.24% 149.12% 211.65%
INTERNATIONAL
MSCI EAFE 6.81% 14.11% 64.91% 123.97%
International Funds Average 14.17% 24.75% 89.12% n/a
</TABLE>
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or since the fund started on December 27, 1991. For example, if
you invested $1,000 in a fund that had a 5% return over the past year,
the value of your investment would be $1,050. You can compare the
fund's returns to the performance of the Morgan Stanley Capital
International Europe, Australasia, Far East (EAFE) Index - a market
capitalization-weighted index that is designed to represent the
performance of developed stock markets outside the United States and
Canada. As of April 30, 2000, the index included over 950 equity
securities of companies domiciled in 20 countries. To measure how the
fund's performance stacked up against its peers, you can compare it to
the international funds average, which reflects the performance of
mutual funds with similar objectives tracked by Lipper Inc. The past
six months average represents a peer group of 675 mutual funds. These
benchmarks include reinvested dividends and capital gains, if any, and
exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1994 PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
FIDELITY DIVERSIFIED 31.24% 20.03% 14.59%
INTERNATIONAL
MSCI EAFE 14.11% 10.52% 10.14%
International Funds Average 24.75% 13.15% n/a
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
Diversified International MS EAFE (Net MA tax)
00325 MS001
1991/12/27 10000.00 10000.00
1991/12/31 10060.00 10240.13
1992/01/31 9860.00 10021.41
1992/02/29 9680.00 9662.72
1992/03/31 9140.00 9024.82
1992/04/30 9240.00 9067.72
1992/05/31 9750.00 9674.68
1992/06/30 9540.00 9215.78
1992/07/31 9190.00 8979.92
1992/08/31 9350.00 9543.15
1992/09/30 9140.00 9354.70
1992/10/31 8460.00 8864.00
1992/11/30 8460.00 8947.42
1992/12/31 8671.06 8993.69
1993/01/31 8873.42 8992.59
1993/02/28 9176.96 9264.23
1993/03/31 9915.57 10071.75
1993/04/30 10522.64 11027.58
1993/05/31 10785.71 11260.48
1993/06/30 10482.17 11084.80
1993/07/31 10805.94 11472.82
1993/08/31 11362.43 12092.16
1993/09/30 11210.66 11819.97
1993/10/31 11453.49 12184.23
1993/11/30 11028.54 11119.20
1993/12/31 11850.64 11922.09
1994/01/31 12739.44 12930.05
1994/02/28 12484.04 12894.23
1994/03/31 12085.61 12338.86
1994/04/30 12320.58 12862.39
1994/05/31 12300.15 12788.54
1994/06/30 12136.69 12969.27
1994/07/31 12555.55 13093.99
1994/08/31 12872.25 13404.00
1994/09/30 12504.47 12981.83
1994/10/31 12729.22 13414.13
1994/11/30 12044.75 12769.44
1994/12/31 11979.79 12849.40
1995/01/31 11428.51 12355.78
1995/02/28 11566.33 12320.32
1995/03/31 12128.21 13088.75
1995/04/30 12509.87 13581.01
1995/05/31 12615.88 13419.11
1995/06/30 12806.71 13183.79
1995/07/31 13633.63 14004.56
1995/08/31 13421.60 13470.33
1995/09/30 13676.04 13733.41
1995/10/31 13495.81 13364.25
1995/11/30 13633.63 13736.10
1995/12/31 14132.55 14289.53
1996/01/31 14555.74 14348.19
1996/02/29 14566.88 14396.70
1996/03/31 14856.44 14702.43
1996/04/30 15391.00 15129.88
1996/05/31 15546.91 14851.46
1996/06/30 15691.69 14935.05
1996/07/31 15190.54 14498.53
1996/08/31 15446.68 14530.30
1996/09/30 15914.43 14916.31
1996/10/31 16014.66 14763.67
1996/11/30 16905.60 15351.09
1996/12/31 16961.57 15153.62
1997/01/31 17076.88 14626.27
1997/02/28 17365.14 14869.07
1997/03/31 17388.20 14925.57
1997/04/30 17445.86 15007.66
1997/05/31 18541.27 15987.21
1997/06/30 19486.78 16871.30
1997/07/31 20040.25 17146.65
1997/08/31 18852.59 15868.37
1997/09/30 20155.56 16759.69
1997/10/31 19106.27 15475.73
1997/11/30 18944.84 15320.98
1997/12/31 19289.47 15457.49
1998/01/31 19851.53 16167.29
1998/02/28 20891.95 17207.66
1998/03/31 21860.61 17740.75
1998/04/30 22506.38 17884.10
1998/05/31 22530.30 17800.58
1998/06/30 22386.79 17938.53
1998/07/31 22637.92 18123.66
1998/08/31 19325.35 15881.58
1998/09/30 19145.97 15398.14
1998/10/31 20581.02 17006.79
1998/11/30 21442.05 17881.45
1998/12/31 22065.54 18590.27
1999/01/31 22339.49 18538.77
1999/02/28 21691.97 18100.33
1999/03/31 22663.25 18859.46
1999/04/30 23746.61 19626.66
1999/05/31 22899.85 18619.24
1999/06/30 24194.89 19348.37
1999/07/31 24730.34 19926.89
1999/08/31 25103.91 20003.00
1999/09/30 25489.93 20207.83
1999/10/31 26573.29 20968.05
1999/11/30 29101.11 21699.84
1999/12/31 33240.98 23650.65
2000/01/31 31022.32 22151.20
2000/02/29 33383.70 22751.28
2000/03/31 33331.80 23636.99
2000/04/28 31165.04 22396.52
IMATRL PRASUN SHR__CHT 20000430 20000524 110629 R00000000000104
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Diversified International Fund on December 27,
1991, when the fund started. As the chart shows, by April 30, 2000,
the value of the investment would have grown to $31,165 - a 211.65%
increase on the initial investment. For comparison, look at how the
Morgan Stanley Capital International EAFE Index did over the same
period. With dividends and capital gains, if any, reinvested, the same
$10,000 would have grown to $22,397 - a 123.97% increase.
UNDERSTANDING PERFORMANCE
Many markets around the globe offer the
potential for significant growth over time;
however, investing in foreign markets means
assuming greater risks than investing in the
United States. Factors like changes in a
country's financial markets, its local political
and economic climate, and the fluctuating
value of its currency create these risks. For
these reasons an international fund's
performance may be more volatile than a fund
that invests exclusively in the United States.
Past performance is no guarantee of future
results and you may have a gain or loss when
you sell your shares.
(checkmark)
DIVERSIFIED INTERNATIONAL
FUND TALK: THE MANAGER'S OVERVIEW
(PORTFOLIO MANAGER PHOTO)
An interview with Greg Fraser, Portfolio Manager of Fidelity
Diversified International Fund
Q. HOW DID THE FUND PERFORM, GREG?
A. For the six-month and one-year periods that ended April 30, 2000,
the fund returned 17.28% and 31.24%, respectively. For the same
periods, the Morgan Stanley Capital International (MSCI) EAFE Index -
a broad measure of stock performance in Europe, Australasia and the
Far East - was up 6.81% and 14.11%, respectively. The Lipper Inc.
international funds average was up 14.17% for the six-month period and
24.75% for the 12-month period.
Q. WHAT FACTORS HELPED THE FUND OUTPERFORM BOTH THE EAFE INDEX AND THE
LIPPER PEER GROUP DURING THE SIX-MONTH PERIOD?
A. The reasons have changed very little from six months ago: strong
stock selection across a variety of industries and countries, and an
overweighting in the telecommunications and technology sectors. The
fund attempts to keep risk under control by closely monitoring both
country and industry weightings, so it isn't that surprising that
contributors should come from a variety of industries and countries.
Overall, though, technology and telecom were very large contributors.
The fund's holdings in both sectors performed especially well from
November to February. Then, beginning in March, or even a little
earlier in Japan, some of the most successful names in these sectors
had quite large corrections. I had already begun eliminating some of
the smallest technology stocks in the fund but, nevertheless, the fund
still suffered some from this downdraft. Meanwhile, strong stock
selection was instrumental in several countries where the fund
remained underweighted relative to its respective index, such as Japan
and Germany. In these countries, the fund's performance beat the
performance of the country weightings of the index and the majority of
its peers.
Q. COULD YOU HIGHLIGHT SOME OF THE MORE IMPORTANT CONTRIBUTORS TO FUND
PERFORMANCE?
A. Sure. Technology and telecommunications names dominated the list of
top performers for the period. Mobile equipment suppliers, such as
Ericsson and Nokia, were bid higher as the worldwide growth in mobile
telephony remained impressive. One of Canada's largest communications
companies, BCE, Inc., finalized a plan to spin off its interest in
Nortel Networks, a move that helped the stock perform well. NTT
DoCoMo, the leading mobile-phone provider in Japan and one that has
had wild success with a wireless data application called i-mode,
helped nicely. Finally, Oracle Japan, the distributor of Oracle's
software in that country, did extremely well as Japanese companies
raced to install the systems that would allow them to be more
competitive.
Q. WHICH STOCKS DISAPPOINTED?
A. The answer is somewhat dependent on what time frame you choose to
look at within the period. Certainly, as mentioned above, some
Japanese technology companies started to perform badly near the end of
the period, after a lengthy cycle of unsustainable price appreciation
in 1999. Names such as CSK Corp, Kyocera, and Hikari Tsushin were
three of the fund's worst performers in the first quarter of this
year, yet both CSK and Kyocera ended the six-month period as two of
the fund's top-10 performing stocks due to their outperformance in
1999. The fund did not own CSK at the end of the period. Meanwhile,
Hikari Tsushin, a Japanese telecommunications firm, had a spectacular
price decline, collapsing more than 90% as the company missed its
earnings and sales targets. The stock finished the period as one of
the fund's biggest detractors. Elsewhere, the performance of energy
companies, such as Italy's Eni Spa and the U.K.'s BP Amoco, also was
disappointing, especially given the strong price of oil.
Q. HOW DID CURRENCY MOVEMENTS AFFECT THE FUND?
A. We hope that shareholders of this fund are aware that it generally
does not hedge foreign currency exposure. Hence, currency movements
will generally be reflected in the fund's share price, with weak
currencies hurting and strong currencies helping net asset value - or
NAV - performance. The euro, because of its weakness, did hold back
fund performance during the period. While I have been quite cautious
on the euro, I would now characterize my own views as neutral, with a
positive bias, because it has fallen rather sharply versus the dollar.
Q. GREG, WHAT'S YOUR OUTLOOK FOR THE FUND?
A. Beginning in March, technology stocks around the world experienced
significantly higher volatility and, in many cases, lower prices. Is
the outperformance of technology shares over for a while, or is this
just one of many air pockets that technology investors have
experienced during the past several years? I don't know, but it is
prudent in this environment to trim smaller technology company
weightings and focus on the companies with the strongest actual
fundamentals - not just those with the strongest potential in some
distant timeframe. I continue to watch the proliferation of
telecommunications companies with great interest. Some fear that
future returns may be more modest than observers expect. Advancements
in science are driving exponential improvement in telecommunications
technologies, but are not driving exponential increases in the number
of customers. Because of the industry's high fixed costs and low
marginal costs - similar to the airline industry - price wars for
telecommunications customers could become brutal at some point in the
future. Therefore, shareholders should not be surprised if my
weightings in these companies fall moderately in the future.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER AND DO NOT NECESSARILY REPRESENT THE VIEWS OF FIDELITY OR
ANY OTHER PERSON IN THE FIDELITY ORGANIZATION. ANY SUCH VIEWS ARE
SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS
AND FIDELITY DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE
VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS FOR A FIDELITY FUND ARE BASED ON NUMEROUS
FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON
BEHALF OF ANY FIDELITY FUND.
GREG FRASER DISCUSSES THE FUND'S MISSION:
"I view the mission of the Fidelity Diversified International
Fund as providing competitive returns relative to both its
top-performing peer funds and relevant indexes in most
market climates, and with reasonable risk levels. Let's focus
on a few key points:
(solid bullet) COMPETITIVE RETURNS: Some funds `swing for the
fences' and take very concentrated sector and country bets.
This is great when the fund manager is right, but very painful
when the fund manager misses. This fund's goal is to provide
solid returns over the long term.
(solid bullet) RELATIVE RETURNS: This fund is always competing
against two sets of competitors simultaneously: other funds
and indexes. I look at country weightings and industry
weightings for both groups of competitors. Often, this fund
will end up positioned somewhere in between the two.
While ending up in between is not always the case, the
fund's models would have to be giving very strong signals for
me to make large country or industry bets versus both.
(solid bullet) MARKET CLIMATES: The fund is neither a growth fund
nor a value fund. Rather, it is driven by both. I've tried to
create a process that is not a one-trick pony. So, over time,
the fund's holdings will vary in terms of market capitalization
and growth/value characteristics as the fund responds to
changes in the markets.
(solid bullet) REASONABLE RISK LEVELS: An investment that involves
huge returns interspersed with huge losses is not a ride that
most people have the stomach to endure. So I try to temper
the fund's volatility by having a broad number of securities
spread across a lot of countries and industries. In this
manner, while the risks of foreign investing can't be
eliminated, they can be managed."
FUND FACTS
GOAL: long-term growth by investing primarily
in foreign equity securities that are determined,
mainly through both quantitative and fundamental
analysis, to be undervalued compared to
others in their industries and countries
FUND NUMBER: 325
TRADING SYMBOL: FDIVX
START DATE: December 27, 1991
SIZE: as of April 30, 2000, more than $5.7
billion
MANAGER: Greg Fraser, since 1991; manager,
Fidelity Select Environmental Services
Portfolio, 1991; Fidelity Select Defense and
Aerospace Portfolio, 1989-1990; joined
Fidelity in 1986
(checkmark)
DIVERSIFIED INTERNATIONAL
INVESTMENT CHANGES
AS OF APRIL 30, 2000
Canada 4.1%
United States 7.7%
Row: 1, Col: 1, Value: 4.1
Row: 1, Col: 2, Value: 8.199999999999999
Row: 1, Col: 3, Value: 7.3
Row: 1, Col: 4, Value: 21.4
Row: 1, Col: 5, Value: 5.6
Row: 1, Col: 6, Value: 23.2
Row: 1, Col: 7, Value: 4.2
Row: 1, Col: 8, Value: 7.6
Row: 1, Col: 9, Value: 10.4
Row: 1, Col: 10, Value: 7.7
France 8.2%
United Kingdom 10.4%
Germany 7.3%
Switzerland 7.6%
Japan 21.4%
Sweden 4.2%
Other 23.5%
Netherlands 5.6%
GEOGRAPHIC DIVERSIFICATION (%
OF FUND'S NET ASSETS)
AS OF OCTOBER 31, 1999
Canada 3.9%
Finland 3.6%
United States 9.2%
Row: 1, Col: 1, Value: 3.9
Row: 1, Col: 2, Value: 3.6
Row: 1, Col: 3, Value: 7.6
Row: 1, Col: 4, Value: 6.4
Row: 1, Col: 5, Value: 26.1
Row: 1, Col: 6, Value: 6.3
Row: 1, Col: 7, Value: 19.1
Row: 1, Col: 8, Value: 6.3
Row: 1, Col: 9, Value: 11.5
Row: 1, Col: 10, Value: 9.199999999999999
France 7.6%
United Kingdom 11.5%
Germany 6.4%
Switzerland 6.3%
Japan 26.1%
Other 19.1%
Netherlands 6.3%
<TABLE>
<CAPTION>
<S> <C> <C>
ASSET ALLOCATION
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Stocks and Investment Companies 93.0 91.9
Bonds 0.3 0.3
Short-Term Investments and 6.7 7.8
Net Other Assets
TOP TEN STOCKS BY ISSUER AS
OF APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
NTT DoCoMo, Inc. (Japan, 2.3 0.6
Cellular)
Nokia AB (Finland, 2.2 1.9
Communications Equipment)
Vodafone AirTouch PLC 2.0 2.5
(United Kingdom, Cellular)
Nippon Telegraph & Telephone 2.0 0.6
Corp. (Japan, Telephone
Services)
TotalFinaElf SA (France, Oil 2.0 1.1
& Gas)
Telefonaktiebolaget LM 1.5 0.8
Ericsson (Sweden,
Communications Equipment)
Furukawa Electric Co. Ltd. 1.5 0.5
(Japan, Electrical Equipment)
Eni Spa (Italy, Oil & Gas) 1.1 1.2
Telefonica SA (Spain, 1.1 0.8
Telephone Services)
Shell Transport & Trading Co. 1.1 1.1
PLC (United Kingdom, Oil &
Gas)
16.8 11.1
TOP TEN MARKET SECTORS AS OF
APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Utilities 17.3 13.0
Technology 13.4 13.4
Finance 11.5 16.0
Energy 8.0 6.3
Industrial Machinery & 6.8 4.7
Equipment
Health 6.6 6.9
Basic Industries 5.9 5.7
Durables 5.9 5.4
Media & Leisure 4.8 3.9
Nondurables 3.2 6.0
</TABLE>
DIVERSIFIED INTERNATIONAL
INVESTMENTS APRIL 30, 2000 (UNAUDITED)
Showing Percentage of Net Assets
COMMON STOCKS - 89.6%
SHARES VALUE (NOTE 1)
AUSTRALIA - 2.4%
AAPT Ltd. (a) 3,500,000 $ 14,000,201
Australian Stock Exchange 600,000 4,449,699
Ltd.
BMCMedia.com Ltd. (a) 3,600,000 4,246,484
Broken Hill Proprietary Co. 500,000 5,384,019
Ltd.
Cable & Wireless Optus Ltd. 8,000,000 25,833,948
(a)
Commonwealth Bank of Australia 1,000,000 15,229,416
E*TRADE Australia Ltd. (a) 262,852 368,382
ISIS Communications Ltd. 6,000,009 3,013,187
(a)(e)
John Fairfax Holdings Ltd. 1,500,000 4,335,829
Keycorp Ltd. (a) 150,000 766,434
Macquarie Bank Ltd. 250,000 3,445,305
News Corp. Ltd. sponsored ADR 800,000 35,200,000
(preferred ltd. vtg.)
Pioneer International Ltd. 1,000,000 2,802,960
Securenet Ltd. (a) 650,000 1,935,794
WMC Ltd. 4,250,000 17,645,509
138,657,167
AUSTRIA - 0.2%
Mayr Melnhof Karton AG 100,000 4,728,603
RHI AG 150,000 3,554,655
RHI AG New 87,000 2,053,770
10,337,028
BELGIUM - 0.6%
Lernout & Hauspie Speech 170,000 16,447,500
Products NV (a)
Telinfo SA 150,000 16,952,970
Telinfo SA (strip VVPR) 11,111 101
33,400,571
BERMUDA - 0.3%
Ace Ltd. 200,000 4,787,500
Global Crossing Ltd. (a) 120,000 3,780,000
Knightsbridge Tankers Ltd. 120,000 2,235,000
RenaissanceRe Holdings Ltd. 100,000 3,675,000
14,477,500
BRAZIL - 0.3%
Brahma Cervejaria (Compagnie) 188,529 26,113
warrants 4/30/03 (a)
Tele Norte Leste 17,563 312,841
Participacoes SA ADR
Telebras sponsored ADR (pfd 150,000 17,728,125
holder)
18,067,079
CANADA - 4.0%
Alberta Energy Co. Ltd. 300,000 9,491,491
Anderson Exploration Ltd. (a) 420,000 6,722,042
BCE, Inc. 500,000 57,907,888
CAE, Inc. 150,000 1,408,023
Canada Occidental Petroleum 160,000 3,673,690
Ltd.
Canadian Hunter Exploration 150,000 2,841,370
Ltd. (a)(f)
Canadian Natural Resources 500,000 13,337,385
Ltd. (a)
SHARES VALUE (NOTE 1)
Canadian Pacific Ltd. 200,000 $ 4,652,890
Celestica, Inc. (sub. vtg.) 300,000 16,187,196
(a)
Delano Technology Corp. 30,000 328,125
Fletcher Challenge Canada 720,000 8,363,047
Ltd.
Gulf Canada Resources Ltd. (a) 3,000,000 12,358,185
Harrowston, Inc. Class A (a) 1,100,000 3,528,498
Magna International, Inc. 500,000 23,264,452
Class A
Marsulex, Inc. (a) 160,000 361,967
Mitel Corp. (a) 250,000 6,263,506
Noranda, Inc. 50,000 474,406
Onex Corp. 160,000 4,808,212
Pancanadian Petroleum Ltd. 250,000 4,777,823
Penn West Petroleum Ltd. (a) 130,000 3,314,087
Petro-Canada 200,000 3,369,800
Rio Alto Exploration Ltd. (a) 360,000 6,320,908
SR Telecom, Inc. (a) 300,000 1,985,413
Sun Life Financial Services 500,000 5,959,616
Canada, Inc.
Suncor Energy, Inc. 200,000 8,542,680
TimberWest Forest Corp. unit 1,000,000 7,023,231
Toronto Dominion Bank 450,000 10,408,225
227,674,156
DENMARK - 1.5%
Falck AS 125,000 17,322,320
GN Store Nordic AS 250,000 20,298,402
Novo-Nordisk AS (B Shares) 200,000 26,861,043
Sydbank AS 5,551 176,216
Tele Danmark AS (B Shares) 300,000 21,977,217
TK Development AS 50,000 1,141,594
87,776,792
FINLAND - 3.7%
Aldata Solutions Oyj (a) 1,000,000 7,337,173
F-Secure Oyj (a) 125,000 1,595,038
Helsinki Telephone Corp. 70,000 5,544,350
Class E
KCI Konecranes 100,000 3,326,793
Metsa Tissue PLC 668,400 5,848,447
Metsa-Serla Oyj Class B Free 500,000 4,251,914
Shares
Metso Oyj 600,000 7,929,615
Nokia AB sponsored ADR 2,220,000 126,262,500
Nokian Tyres Ltd. 100,000 3,281,220
Novo Group Oyj 74,050 799,116
Perlos Oyj 125,000 4,642,698
Sampo Insurance Co. Ltd. 650,000 24,645,608
Sanoma-WSOY Oyj 50,000 3,212,861
Teleste Oyj 200,000 5,277,296
UPM-Kymmene Corp. 250,000 6,494,081
210,448,710
FRANCE - 8.0%
Aventis SA 900,000 50,625,000
AXA SA de CV 300,000 44,597,249
Banque Nationale de Paris 100,000 8,102,791
(BNP)
Carbone Lorraine Group 186,699 8,168,007
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
FRANCE - CONTINUED
Christian Dior SA 140,000 $ 33,368,185
CNP Assurances 600,000 17,532,652
Compagnie de St. Gobain 25,000 3,420,216
Compagnie Generale 100,000 4,716,754
d'Industrie et de
Participations (CGIP)
Compagnie Generale de 147,367 1,703,931
Geophysique SA sponsored ADR
(a)
Credit Commercial de France 50,000 7,141,211
Elf Aquitaine SA sponsored ADR 150,000 13,387,500
Eramet SA 150,000 7,143,489
Eurafrance (Societe) 28,350 12,403,012
Eurotunnel SA unit (a) 1,000,000 1,039,053
France Telecom SA 187,000 29,009,084
Havas Advertising SA 5,000 2,501,930
Isis SA 75,000 4,101,525
L'Oreal SA 4,000 2,719,767
Louis Vuitton Moet Hennessy 20,000 8,414,506
(LVMH)
Penauille Polyservices SA 2,246 1,360,309
Prosodie SA 14,090 3,339,006
Rhodia SA 690,000 12,829,570
Sagem SA 9,000 11,221,772
SPIR Communication SA 27,201 2,375,107
SR Teleperformance SA 12,634 3,362,456
Television Francaise 1 SA 5,000 3,431,609
TotalFinaElf SA:
Class B 475,000 71,843,748
sponsored ADR 555,000 41,971,875
Union Assurances Federales SA 70,000 9,251,217
(f)
Vivendi SA 340,000 33,716,358
454,798,889
GERMANY - 6.9%
ACG AG 6,964 1,681,791
Allianz AG (Reg.) 125,000 48,227,098
Altana AG 100,000 7,246,028
Axel Springer Verlag 10,000 10,025,950
BASF AG 500,000 21,915,815
Bayer AG 750,000 31,328,815
Buderus AG 275,000 4,759,820
Celanese AG 250,000 4,924,109
Deutsche Bank AG 100,010 6,736,289
Deutsche Telekom AG 550,000 35,787,629
DIS Deutscher Industrie 150,000 18,867,015
Service AG
Epcos AG 40,000 5,650,990
Fresenius Medical Care AG 410,000 10,070,625
sponsored ADR
Heidelberger Druckmaschinen AG 350,000 19,076,649
Metallgesellschaft AG 800,000 12,410,303
MobilCom AG 20,000 2,442,686
Muehlbauer Holding AG & Co. 30,000 1,900,373
NorCom Information Technology 40,000 3,106,222
AG (a)
Schering AG 80,000 11,338,438
SGL Carbon AG (a) 200,000 15,492,827
SHARES VALUE (NOTE 1)
Siemens AG 290,000 $ 43,084,242
Stinnes AG 408,886 8,757,960
Suess MicroTec AG (a) 86,500 3,421,674
T-Online International AG 157,700 5,965,030
Techem AG (a) 550,000 15,284,561
United Internet AG (a) 93,647 24,155,340
Veba AG 350,000 17,609,214
Winkler & Dunnebier AG 125,720 2,234,456
393,501,949
GRAND CAYMAN ISLANDS - 0.0%
SUNDAY Communications Ltd. ADR 260,000 1,820,000
HONG KONG - 0.7%
China Telecom Ltd. (a) 2,600,000 19,069,375
China Telecom Ltd. sponsored 90,000 13,201,875
ADR (a)
Hutchison Whampoa Ltd. 500,000 7,285,822
39,557,072
IRELAND - 0.6%
Anglo-Irish Bank Corp. PLC 2,000,000 4,411,940
Elan Corp. PLC sponsored ADR 300,000 12,862,500
(a)
Independent Newspapers PLC 1,000,000 8,002,531
Ryanair Holdings PLC 200,000 8,150,000
sponsored ADR (a)
33,426,971
ISRAEL - 0.6%
Advanced Vision Technology 100,000 1,772,770
Ltd.
BATM Advanced Communications 20,000 1,398,150
Ltd.
Bezeq Israeli 600,000 3,184,592
Telecommunication Corp.
Ltd.
Internet Gold 285,000 3,277,500
Metalink Ltd. 30,000 856,875
Teva Pharmaceutical 550,200 24,208,800
Industries Ltd. ADR
34,698,687
ITALY - 2.3%
Assicurazioni Generali Spa 148,000 4,210,060
Ducati Motor Holding Spa 4,000,000 10,572,820
Eni Spa sponsored ADR 1,200,000 62,400,000
Industrie Natuzzi Spa ADR 100,000 1,100,000
Luxottica Group Spa sponsored 150,000 3,581,250
ADR
Pirelli Spa 1,300,000 3,148,239
SAES Getters Spa sponsored ADR 300,000 1,800,000
San Paolo Imi Spa 300,000 4,221,836
Telecom Italia Mobile Spa 1,400,000 13,404,695
Telecom Italia Spa 1,500,000 21,431,247
Tiscali Spa (a) 150,000 8,015,747
133,885,894
JAPAN - 21.4%
Advantest Corp. 50,000 11,425,005
Anritsu Corp. 500,000 5,552,987
Bank of Tokyo-Mitsubishi Ltd. 525,000 6,792,188
ADR
Canon, Inc. ADR 90,000 4,179,375
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
JAPAN - CONTINUED
DDI Corp. 3,300 $ 37,839,837
Fanuc Ltd. 75,000 7,850,934
Fuji Coca-Cola Bottling Co. 300,000 2,843,536
Ltd.
Fuji Heavy Industries Ltd. 1,500,000 11,443,499
Fuji Photo Film Co. Ltd. 150,000 6,150,000
Fujisawa Pharmaceutical Co. 250,000 9,362,863
Ltd.
Fujitsu Ltd. 1,000,000 28,296,652
Furukawa Electric Co. Ltd. 6,000,000 83,169,964
Hikari Tsushin, Inc. 1,000 144,257
Hokkaido Coca-Cola Bottling 255,000 2,923,987
Co. Ltd.
Honda Motor Co. Ltd. (a) 350,000 15,487,500
Hoya Corp. 200,000 20,343,998
InterQ, Inc. (a) 37,000 7,527,279
Ito-Yokado Co. Ltd. 200,000 14,592,195
JAFCO Co. Ltd. 25,000 4,392,454
Japan Telecom Co. Ltd. 200 10,171,999
Kao Corp. 350,000 10,648,234
KDD Corp. 150,000 17,366,377
Koa Denko Co. Ltd. 250,000 7,259,109
Kyocera Corp. 300,000 49,818,750
Levi Strauss Japan 110,000 640,836
Mabuchi Motor Co. Ltd. 30,000 3,301,276
Marubeni Corp. 2,500,000 7,235,990
Matsushita Communication 75,000 11,748,659
Industrial Co. Ltd.
Matsushita Electric 1,400,000 37,310,000
Industrial Co. Ltd.
Mikasa Coca Cola Bottling Co. 55,700 453,264
Mitsubishi Electric Corp. 2,500,000 21,338,080
Murata Manufacturing Co. Ltd. 100,000 19,419,271
NEC Corp. 1,600,000 43,499,167
Nichicon Corp. 500,000 13,408,544
Nikko Securities Co. Ltd. 300,000 3,537,082
Nintendo Co. Ltd. 60,000 9,987,054
Nippon Electric Glass Co. 120,000 2,143,888
Ltd.
Nippon System Development Co. 150,000 14,300,906
Ltd.
Nippon Telegraph & Telephone 9,200 114,000,369
Corp.
Nippon Television Network 5,000 3,731,274
Corp.
Nippon Television Network 5,000 3,698,909
Corp. (a)
Nitto Denko Corp. 150,000 5,881,265
Nomura Securities Co. Ltd. 1,000,000 25,152,580
NTT DoCoMo, Inc. 4,000 133,530,600
Omron Corp. 1,300,000 35,343,074
Oracle Corp. Japan 4,500 3,620,307
ORIX Corp. 150,000 21,388,940
Pioneer Corp. 1,000,000 27,279,452
Ricoh Co. Ltd. 300,000 6,325,134
Rohm Co. Ltd. 75,000 25,106,343
Sanyo Electric Co. Ltd. 7,000,000 46,670,982
Secom Co. Ltd. 65,000 5,445,718
Sharp Corp. 1,000,000 19,280,562
Shikoku Coca-Cola Bottling 199,500 2,232,245
Co. Ltd.
Softbank Corp. 21,000 5,165,526
SHARES VALUE (NOTE 1)
Softbank Corp. New 42,000 $ 10,331,052
Sony Corp. 75,000 8,460,937
Sony Corp. New 50,000 5,640,625
Square Co. Ltd. 83,050 6,105,488
Sumitomo Corp. 700,000 7,832,439
Takeda Chemical Industries 565,000 37,147,679
Ltd.
Teikoku Hormone Manufacturing 250,000 1,756,982
Co. Ltd.
THK Co. Ltd. 100,000 4,207,509
Tokyo Broadcasting System, 50,000 2,173,109
Inc.
Tokyo Electron Ltd. 40,000 6,513,778
Tokyo Seimitsu Co. Ltd. 100,000 10,449,417
Toshiba Corp. 600,000 5,814,685
Toyoda Automatic Loom Works 892,000 17,651,933
Ltd.
Toyota Motor Corp. 800,000 39,975,000
Trans Cosmos, Inc. 45,000 8,946,736
1,220,767,645
KOREA (SOUTH) - 0.8%
Korea Data System 210,000 1,703,087
Korea Thrunet Co. Ltd. Class A 150,000 3,881,250
Samsung Electronics Co. Ltd. 150,000 40,549,680
46,134,017
LUXEMBOURG - 0.4%
Audiofina 75,000 9,262,611
Espirito Santo Financial 500,000 9,000,000
Holding SA ADR
Quilmes Industrial SA 350,000 3,325,000
sponsored ADR
21,587,611
MARSHALL ISLANDS - 0.0%
Teekay Shipping Corp. 90,000 2,953,125
MEXICO - 0.6%
Elamex SA de CV (a) 300,000 1,125,000
Grupo Radio Centro SA de CV 328,300 4,596,200
sponsored ADR
Industrias Penoles SA 1,000,000 2,064,379
Telefonos de Mexico SA de CV 310,000 18,231,875
Series L sponsored ADR
Wal-Mart de Mexico SA de CV 3,000,000 6,416,600
Series C (a)
32,434,054
NETHERLANDS - 5.6%
ABN AMRO Holding NV 1,300,000 26,837,645
Akzo Nobel NV 550,000 22,573,426
Buhrmann NV 360,000 9,302,259
Core Laboratories NV (a) 105,000 2,979,375
De Telegraaf Holding NV 650,000 18,039,874
(Certificaten Van Aandelen)
Fugro NV 160,000 7,510,348
Heineken Holding NV (A Shares) 700,000 23,638,456
ICT Automatisering NV 30,000 1,212,684
IHC Caland NV 60,000 2,433,572
ING Groep NV (Certificaten 1,000,000 54,705,229
Van Aandelen)
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
NETHERLANDS - CONTINUED
Jomed NV 394,800 $ 12,057,592
Koninklijke Ahold NV 260,000 6,078,460
Koninklijke Boskalis 150,000 2,686,499
Westminster NV
Koninklijke KPN NV 200,000 20,206,846
Koninklijke Philips 1,200,000 53,669,822
Electronics NV
Petroplus International NV 550,000 5,764,921
Rodamco Asia NV (a) 125,000 1,327,299
STMicroelectronics NV (NY 70,000 13,278,125
Shares)
Trader.com NV (A Shares) (a) 160,000 2,668,726
Unilever NV (NY Shares) 200,000 9,112,500
United Pan-Europe 108,300 3,951,363
Communications NV (a)
Van Melle NV (Certificaten 122,264 3,097,963
Van Aandelen)
Vendex KBB NV 550,000 8,496,993
Vopak NV (a) 100,000 2,501,930
Wegener NV 200,000 3,089,816
317,221,723
NEW ZEALAND - 0.7%
Contact Energy Ltd. 5,200,000 5,958,056
Fletcher Challenge Ltd.:
Building Division 5,000,000 4,733,625
Energy Division 2,000,000 4,612,250
Forestry Division (a) 20,235,000 7,368,069
Paper Division 2,000,000 2,243,010
Sky City Ltd. 1,200,000 3,664,554
Telecom Corp. of New Zealand 3,300,000 13,938,705
Ltd.
42,518,269
NORWAY - 0.9%
A-pressen ASA (A Shares) (a) 200,000 3,355,273
DNB Holding ASA 501,074 1,759,698
NetCom ASA (a) 75,000 2,977,805
Norsk Hydro AS 300,000 10,988,519
ProSafe ASA (a) 560,000 7,390,548
Schibsted AS (B Shares) 700,000 14,561,885
Sparebanken NOR primary 300,000 5,334,884
shares certificates
Tandberg ASA (a) 88,100 1,349,905
VISMA ASA (a) 200,000 1,207,898
48,926,415
PANAMA - 0.3%
Banco Latin Americano de 500,000 12,343,750
Exporaciones SA (BLADEX)
Series E
Carnival Corp. 150,000 3,731,250
16,075,000
PAPUA NEW GUINEA - 0.0%
Oil Search Ltd. (a) 1,500,000 1,357,684
PERU - 0.1%
Compania de Minas 210,000 3,622,500
Buenaventura SA Class B
sponsored ADR
SHARES VALUE (NOTE 1)
POLAND - 0.1%
Agora SA unit (a) 150,000 $ 3,412,500
PORTUGAL - 0.2%
Electricidade de Portugal SA 250,000 4,443,319
Portugal Telecom SA 650,000 7,269,269
11,712,588
RUSSIA - 0.1%
Lukoil Oil Co. sponsored ADR 100,000 5,950,000
SINGAPORE - 0.3%
Flextronics International 190,000 13,347,500
Ltd. (a)
Times Publishing Ltd. 1,500,000 3,779,666
17,127,166
SOUTH AFRICA - 0.4%
Anglo American Platinum Corp. 300,000 7,245,950
Ltd.
Anglogold Ltd. 100,000 3,799,705
Dimension Data Holdings Ltd. 700,000 4,587,629
(a)
Gold Fields Ltd. 1,086,900 3,521,620
Impala Platinum Holdings Ltd. 210,000 6,649,485
25,804,389
SPAIN - 2.5%
Banco Santander Central 3,500,000 38,062,500
Hispano SA ADR
Endesa SA 360,000 7,828,991
Prosegur Comp Securidad SA 127,000 1,483,968
Repsol SA sponsored ADR 1,690,000 34,856,250
Telefonica SA sponsored ADR 925,000 61,281,250
143,512,959
SWEDEN - 4.2%
Arkivator AB 130,000 6,202,401
Artimplant AB (B Shares) 390,000 5,984,007
(a)(e)
Assi Doman AB (Free Shares) 100,000 1,657,558
Atle AB 435,000 7,648,844
Bure Investment AB 330,000 2,328,420
Elanders AB (B Shares) 100,000 3,203,118
Enea Data AB 60,000 10,610,608
Getinge Industrier AB (B 370,000 3,439,432
Shares)
Information Highway AB (a) 90,000 927,336
Investor AB (B Shares) 1,600,000 22,578,622
Kinnevik Investment AB (B 350,000 12,151,689
Shares)
Kungsleden AB 200,000 1,612,759
Modern Times Group AB (MTG) 90,000 4,445,166
(B Shares) (a)
Netcom AB (B Shares) (a) 150,000 10,701,326
Nocom AB (B Shares) (a) 97,700 1,750,739
Nordic Baltic Holding AB 1,000,000 6,327,838
Novestra AB (a) 75,000 4,955,873
Saab AB (B Shares) 370,700 3,030,766
Scandic Hotels AB 300,000 3,191,918
Securitas AB (B Shares) 225,300 5,854,045
Semcon AB 150,000 2,343,540
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
SWEDEN - CONTINUED
Sifo Group AB (B Shares) 150,000 $ 1,931,951
SKF AB (B Shares) 240,000 5,160,828
Svenska Cellulosa AB (SCA) (B 450,000 8,567,781
Shares)
Svenska Handelsbanken AB (A 620,000 8,228,429
Shares)
Tele1 Europe Holding AB (a) 58,400 922,229
Telefonaktiebolaget LM 1,000,000 88,437,500
Ericsson sponsored ADR
Telelogic AB (a) 500,000 3,807,903
TV 4 AB (A Shares) 105,520 2,895,395
240,898,021
SWITZERLAND - 7.5%
ABB Ltd. (Reg.) 350,000 39,397,906
Adecco SA 13,000 10,700,989
Ascom Holding AG (Bearer) 4,000 13,612,565
Axantis Holding AG 800 439,791
Bank for International 1,000 4,828,389
Settlements (BIS)
Credit Suisse Group (Reg.) 160,000 28,993,601
Disetronic Holding AG 1,500 8,682,373
Edipresse SA (Bearer) 40,000 19,429,901
Fantastic Corp. (a) 200,000 3,664,029
Gretag Imaging Holding AG 41,000 8,264,398
(Reg. D)
Holderbank Financiere Glarus 10,000 11,343,805
AG (Bearer)
Julius Baer Holding AG 1,300 4,560,209
Mikron Holding AG 10,000 7,242,583
Nestle SA (Reg.) 30,000 53,054,101
Novartis AG (Reg.) 26,000 36,436,300
Oerlikon-Buhrle Holding AG (a) 25,000 5,730,076
PubliGroupe SA 33,800 26,151,251
Richemont Compagnie Financier 12,500 30,468,296
Class A unit
Roche Holding AG 3,500 36,669,575
participation certificates
Sulzer Medica AG (Reg.) 35,000 7,614,892
Surveillance, Soc Gen Sgs (a) 5,000 7,795,230
The Swatch Group AG (Reg.) 150,000 33,944,154
UBS AG 125,000 30,722,804
429,747,218
TAIWAN - 0.1%
GigaMedia Ltd. 60,000 1,440,000
Taiwan Semiconductor 300,000 1,931,688
Manufacturing Co. Ltd. (a)
3,371,688
UNITED KINGDOM - 10.4%
Aggreko PLC 1,000,000 5,169,271
Allied Domecq PLC 2,600,000 12,713,067
Allied Zurich PLC 1,100,000 10,893,919
Antofagasta Holdings PLC 750,000 4,602,244
AstraZeneca Group PLC 150,000 6,318,750
sponsored ADR
Autonomy Corp. PLC (a) 50,000 6,650,000
SHARES VALUE (NOTE 1)
Avis Europe PLC 595,100 $ 1,756,527
Barclays PLC 350,000 8,927,965
Bodycote International PLC 1,138,900 4,378,971
BP Amoco PLC sponsored ADR 1,050,000 53,550,000
British Energy PLC 2,500,000 6,641,213
British Telecommunications PLC 1,000,000 18,299,997
Cable & Wireless PLC ADR 90,000 4,443,750
Cambridge Antibody Technology 150,000 5,709,113
Group PLC (a)
Carlton Communications PLC 500,000 6,012,045
Centrica PLC 2,000,000 7,083,960
Diageo PLC 1,650,000 13,316,214
Diageo PLC sponsored ADR 75,000 2,550,000
Dialog Semiconductor PLC 50,000 5,514,273
Energis PLC (a) 100,000 4,923,042
Glaxo Wellcome PLC sponsored 430,000 27,009,375
ADR
Guardian IT PLC 210,000 4,231,268
Hanson PLC 1,500,000 10,998,780
Hanson PLC sponsored ADR 180,000 6,581,250
House of Fraser PLC 2,000,000 1,336,010
HSBC Holdings PLC (Reg.) 1,300,000 14,868,755
Invensys PLC 1,000,000 4,777,013
Jazztel PLC sponsored ADR 37,500 1,950,000
Johnson Matthey PLC 1,000,000 12,808,608
Lloyds TSB Group PLC 600,000 5,853,588
Logica PLC 200,000 6,012,045
Nycomed Amersham PLC 1,000,000 7,627,685
Professional Staff PLC 804,000 4,020,000
sponsored ADR (a)(e)
Provident Financial Group PLC 500,000 4,260,474
Reckitt Benckiser PLC 650,000 6,624,124
Rexam PLC 1,500,000 5,714,938
Ricardo PLC 250,000 1,577,773
Rio Tinto PLC (Reg.) 1,200,000 18,548,790
Royal & Sun Alliance 1,000,000 5,569,298
Insurance Group PLC
Royal Bank of Scotland Group 300,000 4,644,188
PLC
Shell Transport & Trading Co. 7,500,000 60,312,463
PLC (Reg.)
Smith & Nephew PLC 1,500,000 4,310,963
SmithKline Beecham PLC 450,000 30,937,500
sponsored ADR
South African Breweries PLC 1,100,000 8,100,147
SSL International PLC 700,000 7,095,611
Tesco PLC 1,500,000 5,103,248
Unilever PLC ADR 200,000 4,975,000
United News & Media PLC 500,000 6,346,048
United Utilities PLC 600,000 5,732,415
Vodafone AirTouch PLC 15,000,000 70,500,083
Vodafone AirTouch PLC 1,015,000 47,705,000
sponsored ADR
595,586,761
UNITED STATES OF AMERICA - 0.9%
Hollinger International, Inc. 500,000 6,312,500
Class A
Impsat Fiber Networks, Inc. 60,000 948,750
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
UNITED STATES OF AMERICA -
CONTINUED
Orthofix International NV (a) 627,300 $ 11,605,050
Pharmacia Corp. 297,500 14,856,406
SCM Microsystems, Inc. (a) 90,000 7,121,250
TeraBeam Networks (h) 4,400 66,000
UnitedGlobalCom, Inc. (a) 160,000 8,500,000
49,409,956
TOTAL COMMON STOCKS 5,112,659,754
(Cost $4,276,072,725)
NONCONVERTIBLE PREFERRED
STOCKS - 0.4%
GERMANY - 0.4%
Marschollek Lautenschlaeger 25,000 13,317,424
und Partner AG
Prosieben Media AG (non-vtg.) 100,000 8,950,439
TOTAL NONCONVERTIBLE 22,267,863
PREFERRED STOCKS
(Cost $13,408,651)
INVESTMENT COMPANIES - 3.0%
ARGENTINA - 0.1%
Argentina Fund, Inc. 250,000 2,593,750
BRAZIL - 0.1%
Brazil Fund, Inc. 360,000 5,422,500
CANADA - 0.1%
Economic Investment Trust 63,696 3,785,284
Ltd.
United Corporations Ltd. 86,921 2,553,392
6,338,676
CHILE - 0.2%
Chile Fund, Inc. 420,000 4,016,250
Five Arrows Chile Investment 1,710,000 4,702,500
Trust Ltd.
Genesis Chile Fund 35,000 980,000
9,698,750
CHINA - 0.0%
China Fund, Inc. 200,000 1,800,000
Jardine Fleming China Region 50,000 375,000
Fund, Inc.
2,175,000
EMERGING MARKETS - 0.4%
Asia Tigers Fund, Inc. 525,000 4,626,563
Central European Equity Fund, 250,000 3,750,000
Inc.
Emerging Markets 354,568 4,055,372
Infrastructure Fund, Inc.
Emerging Markets 250,000 3,859,375
Telecommunication Fund, Inc.
Southern Africa Fund, Inc. 50,000 662,500
Templeton Dragon Fund, Inc. 1,000,000 7,937,500
24,891,310
SHARES VALUE (NOTE 1)
FRANCE - 0.1%
France Growth Fund, Inc. 400,000 $ 5,500,000
HONG KONG - 0.1%
Asia Pacific Fund, Inc. 500,000 4,625,000
Greater China Fund, Inc. 150,000 1,181,250
5,806,250
INDIA - 0.4%
India Fund 700,000 10,018,750
India Growth Fund 294,900 3,667,819
Jardine Fleming India Fund, 339,200 3,900,800
Inc.
Morgan Stanley Dean Witter 200,000 2,425,000
India Investment Fund, Inc.
(a)
20,012,369
ITALY - 0.1%
Italy Fund, Inc. (The) 285,000 5,165,625
KOREA (SOUTH) - 0.1%
Korea Equity Fund (a) 200,000 712,500
Korea Fund, Inc. (The) (a) 500,000 6,218,750
Korean Investment Fund, Inc. 200,000 1,287,500
(a)
8,218,750
MEXICO - 0.3%
Mexico Fund, Inc. (The) 1,000,000 15,125,000
MULTI-NATIONAL - 0.8%
Blackrock North American 450,000 4,303,125
Government Income Trust,
Inc.
Dreyfus Strategic Governments 250,000 1,937,500
Income, Inc.
European Warrant Fund, Inc. 100,000 1,556,250
First Commonwealth Fund, Inc. 72,800 668,850
Kemper International Research 112,678 1,723,975
Fund Class A
Latin America Equity Fund, 250,000 3,031,250
Inc. (a)
Latin American Discovery 150,000 1,537,500
Fund, Inc.
Latin American Investment 237,700 3,075,244
Fund, Inc.
MFS Government Markets Income 1,000,000 6,062,500
Trust
Morgan Stanley Dean Witter 100,000 850,000
Africa Investment Fund, Inc.
Morgan Stanley Dean Witter 800,000 8,500,000
Asia-Pacific Fund, Inc.
Strategic Global Income Fund, 640,000 6,360,000
Inc.
Templeton Global Governments 300,000 1,668,750
Income Trust
Templeton Global Income Fund, 700,000 4,025,000
Inc.
45,299,944
PHILIPPINES - 0.0%
First Philippine Fund, Inc. 250,000 1,140,625
PORTUGAL - 0.0%
Portugal Fund, Inc. 158,900 1,956,456
INVESTMENT COMPANIES -
CONTINUED
SHARES VALUE (NOTE 1)
SINGAPORE - 0.1%
Singapore Fund, Inc. (a) 275,000 $ 1,993,750
WEBS Index Fund, Inc. 99,000 742,500
2,736,250
SWITZERLAND - 0.1%
Swiss Helvetia Fund, Inc. 400,000 5,525,000
THAILAND - 0.0%
Thai Euro Fund Ltd. (a) 50,000 312,500
Thai Prime Fund (a) 200,000 796,000
1,108,500
TOTAL INVESTMENT COMPANIES 168,714,755
(Cost $163,189,575)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
CORPORATE BONDS - 0.3%
MOODY'S RATINGS (UNAUDITED) (B) PRINCIPAL AMOUNT (D)
CONVERTIBLE BONDS - 0.2%
ISRAEL - 0.1%
Tecnomatix Tech Ltd. 5.25% - $ 4,121,000 3,791,320
8/15/04
UNITED STATES OF AMERICA - 0.1%
Nestle Holdings, Inc. 3% AAA 7,950,000 8,645,625
6/17/02
TOTAL CONVERTIBLE BONDS 12,436,945
NONCONVERTIBLE BONDS - 0.1%
FRANCE - 0.1%
Eurotunnel Finance Ltd. euro:
0% 4/30/40 (g) - EUR 5,306 6,867,338
0% 4/30/40 (g) - EUR 200 258,852
7,126,190
TOTAL CORPORATE BONDS 19,563,135
(Cost $20,897,382)
</TABLE>
CASH EQUIVALENTS - 12.7%
SHARES
Central Cash Collateral Fund, 333,055,238 333,055,238
5.94% (c)
Taxable Central Cash Fund, 391,318,215 391,318,215
5.77% (c)
TOTAL CASH EQUIVALENTS 724,373,453
(Cost $724,373,453)
TOTAL INVESTMENT PORTFOLIO - 6,047,578,960
106.0%
(Cost $5,197,941,786)
NET OTHER ASSETS - (6.0)% (342,411,908)
NET ASSETS - 100% $ 5,705,167,052
CURRENCY ABBREVIATIONS
EUR - European Monetary Unit
LEGEND
(a) Non-income producing
(b) S&P credit ratings are used in the absence of a rating by Moody's
Investors Service, Inc.
(c) The rate quoted is the annualized seven-day yield of the fund at
period end.
(d) Principal amount is stated in United States dollars unless
otherwise noted.
(e) Affiliated company
(f) Security exempt from registration under Rule 144A of the
Securities
Act of 1933. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At the
period end, the value of these securities amounted to $12,092,587
or 0.2% of net assets.
(g) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(h) Restricted securities - Investment in securities not registered
under the Securities Act of 1933.
Additional information on each holding is as follows:
SECURITY ACQUISITION DATE ACQUISITION COST
TeraBeam Networks 4/7/00 $ 66,000
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $3,857,642,028 and $2,413,319,995, respectively.
The fund placed a portion of its portfolio transactions with brokerage
firms which are affiliates of Fidelity Management & Research Company.
The commissions paid to these affiliated firms were $83,216 for the
period.
The fund invested in securities that are not registered under the
Securities Act of 1933. These securities are subject to legal or
contractual restrictions on resale. At the end of the period,
restricted securities (excluding Rule 144A issues) amounted to $66,000
and 0% of net assets.
The fund participated in the security lending program. At period end,
the value of securities loaned amounted to $340,323,024. The fund
received cash collateral of $333,055,238 which was invested in cash
equivalents
and U.S. Treasury Obligations valued at $19,997,356. Cash collateral
includes $317,246 received for unsettled security loans.
Transactions during the period with companies which are or were
affiliates are
as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
AFFILIATE PURCHASE COST SALES COST DIVIDEND INCOME VALUE
Artimplant AB (B shares) $ - $ - $ - $ 5,984,007
Elamex SA de CV - 287,430 - -
ISIS Communications Ltd. 2,759,117 753,415 - 3,013,187
Professional Staff PLC - - - 4,020,000
Sponsored ADR
TOTALS $ 2,759,117 $ 1,040,845 $ - $ 13,017,194
</TABLE>
INCOME TAX INFORMATION
At April 30, 2000, the aggregate cost of investment securities for
income tax purposes was $5,212,571,254. Net unrealized appreciation
aggregated $835,007,706, of which $1,275,040,318 related to
appreciated investment securities and $440,032,612 related to
depreciated investment securities.
DIVERSIFIED INTERNATIONAL
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000 (UNAUDITED)
ASSETS
Investment in securities, at $ 6,047,578,960
value (cost $5,197,941,786)
- See accompanying schedule
Cash 1,306,393
Foreign currency held at 1,620,423
value (cost $1,621,326)
Receivable for investments sold
Regular delivery 56,074,991
Delayed delivery 3,000,946
Receivable for fund shares 11,487,200
sold
Dividends receivable 10,672,086
Interest receivable 2,056,770
Other receivables 483,884
TOTAL ASSETS 6,134,281,653
LIABILITIES
Payable for investments $ 66,888,607
purchased
Payable for fund shares 23,105,408
redeemed
Accrued management fee 3,889,967
Other payables and accrued 2,175,381
expenses
Collateral on securities 333,055,238
loaned, at value
TOTAL LIABILITIES 429,114,601
NET ASSETS $ 5,705,167,052
Net Assets consist of:
Paid in capital $ 4,503,233,047
Distributions in excess of (9,149,428)
net investment income
Accumulated undistributed net 361,925,479
realized gain (loss) on
investments and foreign
currency transactions
Net unrealized appreciation 849,157,954
(depreciation) on
investments and assets and
liabilities in foreign
currencies
NET ASSETS, for 237,492,717 $ 5,705,167,052
shares outstanding
NET ASSET VALUE, offering $24.02
price and redemption price
per share ($5,705,167,052
(divided by) 237,492,717
shares)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30,
2000 (UNAUDITED)
INVESTMENT INCOME $ 32,885,154
Dividends
Interest 10,491,820
Security lending 1,503,143
44,880,117
Less foreign taxes withheld (3,754,727)
TOTAL INCOME 41,125,390
EXPENSES
Management fee Basic fee $ 18,261,703
Performance adjustment 2,228,855
Transfer agent fees 6,063,493
Accounting and security 720,663
lending fees
Non-interested trustees' 7,435
compensation
Custodian fees and expenses 961,180
Registration fees 687,696
Audit 26,012
Legal 55,177
Miscellaneous 105,057
Total expenses before 29,117,271
reductions
Expense reductions (552,005) 28,565,266
NET INVESTMENT INCOME 12,560,124
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities 368,859,673
(including realized gain
(loss) of $157,436 on
sales of investments in
affiliated issuers)
Foreign currency transactions (152,728) 368,706,945
Change in net unrealized
appreciation (depreciation)
on:
Investment securities 213,225,630
Assets and liabilities in (497,801) 212,727,829
foreign currencies
NET GAIN (LOSS) 581,434,774
NET INCREASE (DECREASE) IN $ 593,994,898
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION $ 345,600
Expense reductions Directed
brokerage arrangements
Custodian credits 11,853
Transfer agent credits 194,552
$ 552,005
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
INCREASE (DECREASE) IN NET SIX MONTHS ENDED APRIL 30, YEAR ENDED OCTOBER 31, 1999
ASSETS 2000 (UNAUDITED)
Operations Net investment $ 12,560,124 $ 24,528,912
income
Net realized gain (loss) 368,706,945 167,836,519
Change in net unrealized 212,727,829 481,618,726
appreciation (depreciation)
NET INCREASE (DECREASE) IN 593,994,898 673,984,157
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (34,877,247) (26,414,796)
From net investment income
In excess of net investment (9,149,428) -
income
From net realized gain (123,282,448) (53,970,908)
TOTAL DISTRIBUTIONS (167,309,123) (80,385,704)
Share transactions Net 3,576,495,434 2,707,434,686
proceeds from sales of shares
Reinvestment of distributions 157,996,836 75,587,611
Cost of shares redeemed (2,035,597,010) (1,741,849,904)
NET INCREASE (DECREASE) IN 1,698,895,260 1,041,172,393
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) 2,125,581,035 1,634,770,846
IN NET ASSETS
NET ASSETS
Beginning of period 3,579,586,017 1,944,815,171
End of period (including $ 5,705,167,052 $ 3,579,586,017
under (over) distribution of
net investment income of
$(9,149,428) and
$28,734,752, respectively)
OTHER INFORMATION
Shares
Sold 145,308,509 142,411,837
Issued in reinvestment of 6,975,584 4,456,615
distributions
Redeemed (82,547,168) (92,138,799)
Net increase (decrease) 69,736,925 54,729,653
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SIX MONTHS ENDED APRIL 30, 2000 YEARS ENDED OCTOBER 31,
SELECTED PER-SHARE DATA (UNAUDITED) 1999 1998 1997 1996
Net asset value, beginning of $ 21.34 $ 17.21 $ 16.57 $ 14.38 $ 12.73
period
Income from Investment
Operations
Net investment income .06 D .18 D .26 D .24 D, E .15
Net realized and unrealized 3.57 4.65 .98 2.46 2.13
gain (loss)
Total from investment 3.63 4.83 1.24 2.70 2.28
operations
Less Distributions
From net investment income (.20) (.23) (.19) (.15) (.22)
In excess of net investment (.05) - - - -
income
From net realized gain (.70) (.47) (.41) (.36) (.41)
Total distributions (.95) (.70) (.60) (.51) (.63)
Net asset value, end of period $ 24.02 $ 21.34 $ 17.21 $ 16.57 $ 14.38
TOTAL RETURN B, C 17.28% 29.12% 7.72% 19.30% 18.66%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 5,705,167 $ 3,579,586 $ 1,944,815 $ 1,514,327 $ 665,492
(000 omitted)
Ratio of expenses to average 1.18% A 1.21% 1.22% 1.25% 1.29%
net assets
Ratio of expenses to average 1.15% A, F 1.18% F 1.19% F 1.23% F 1.27% F
net assets after expense
reductions
Ratio of net investment .51% A .94% 1.46% 1.49% 1.53%
income to average net assets
Portfolio turnover rate 105% A 73% 95% 81% 94%
A ANNUALIZED
B THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C TOTAL RETURNS FOR PERIODS
OF LESS THAN ONE YEAR ARE
NOT ANNUALIZED.
D NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES
OUTSTANDING DURING THE PERIOD.
E INVESTMENT INCOME PER SHARE
REFLECTS A SPECIAL DIVIDEND
WHICH AMOUNTED TO $.05 PER
SHARE.
F FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA 1995
Net asset value, beginning of $ 12.46
period
Income from Investment
Operations
Net investment income .22
Net realized and unrealized .47
gain (loss)
Total from investment .69
operations
Less Distributions
From net investment income (.03)
In excess of net investment -
income
From net realized gain (.39)
Total distributions (.42)
Net asset value, end of period $ 12.73
TOTAL RETURN B, C 6.02%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 295,017
(000 omitted)
Ratio of expenses to average 1.13%
net assets
Ratio of expenses to average 1.12% F
net assets after expense
reductions
Ratio of net investment 1.55%
income to average net assets
Portfolio turnover rate 101%
A ANNUALIZED
B THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C TOTAL RETURNS FOR PERIODS
OF LESS THAN ONE YEAR ARE
NOT ANNUALIZED.
D NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES
OUTSTANDING DURING THE PERIOD.
E INVESTMENT INCOME PER SHARE
REFLECTS A SPECIAL DIVIDEND
WHICH AMOUNTED TO $.05 PER
SHARE.
F FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
</TABLE>
AGGRESSIVE INTERNATIONAL
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value).
CUMULATIVE TOTAL RETURNS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PERIODS ENDED OCTOBER 31, 1994 PAST 6 MONTHS PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
FIDELITY AGGRESSIVE 15.06% 30.56% 106.16% 109.67%
INTERNATIONAL
MSCI EAFE 6.81% 14.11% 64.91% 67.20%
International Funds Average 14.17% 24.75% 89.12% n/a
</TABLE>
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or since the fund started on November 1, 1994. For example, if
you had invested $1,000 in a fund that had a 5% return over the past
year, the value of your investment would be $1,050. You can compare
the fund's returns to the performance of the Morgan Stanley Capital
International Europe, Australasia, Far East (EAFE) Index - a market
capitalization-weighted index that is designed to represent the
performance of developed stock markets outside the United States and
Canada. As of April 30, 2000, the index included over 950 equity
securities of countries domiciled in 20 countries. To measure how the
fund's performance stacked up against its peers, you can compare it to
the international funds average, which reflects the performance of
mutual funds with similar objectives tracked by Lipper Inc. The past
six months average represents a peer group of 675 mutual funds. These
benchmarks include reinvested dividends and capital gains, if any, and
exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1994 PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
FIDELITY AGGRESSIVE 30.56% 15.57% 14.41%
INTERNATIONAL
MSCI EAFE 14.11% 10.52% 9.80%
International Funds Average 24.75% 13.15% n/a
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
Aggressive International MS EAFE (Net MA tax)
00335 MS001
1994/11/01 10000.00 10000.00
1994/11/30 9700.00 9533.02
1994/12/31 9790.00 9592.71
1995/01/31 9440.00 9224.21
1995/02/28 9530.00 9197.73
1995/03/31 10000.00 9771.40
1995/04/30 10170.00 10138.89
1995/05/31 10030.00 10018.03
1995/06/30 10040.00 9842.35
1995/07/31 10830.00 10455.10
1995/08/31 10800.00 10056.27
1995/09/30 10860.00 10252.67
1995/10/31 10630.00 9977.08
1995/11/30 10820.00 10254.68
1995/12/31 11150.86 10667.84
1996/01/31 11253.73 10711.64
1996/02/29 11294.88 10747.85
1996/03/31 11521.18 10976.09
1996/04/30 11912.08 11295.20
1996/05/31 11840.07 11087.35
1996/06/30 11973.80 11149.75
1996/07/31 11562.33 10823.87
1996/08/31 11562.33 10847.59
1996/09/30 11870.93 11135.76
1996/10/31 11654.91 11021.81
1996/11/30 12251.54 11460.35
1996/12/31 12219.78 11312.93
1997/01/31 12198.62 10919.24
1997/02/28 12452.54 11100.50
1997/03/31 12547.75 11142.68
1997/04/30 12568.91 11203.96
1997/05/31 13394.15 11935.25
1997/06/30 14060.68 12595.26
1997/07/31 14409.82 12800.82
1997/08/31 13351.83 11846.52
1997/09/30 14187.64 12511.94
1997/10/31 13193.13 11553.40
1997/11/30 13087.33 11437.87
1997/12/31 13178.62 11539.78
1998/01/31 13581.27 12069.69
1998/02/28 14364.81 12846.37
1998/03/31 15039.52 13244.35
1998/04/30 15453.05 13351.37
1998/05/31 15431.29 13289.02
1998/06/30 15289.82 13392.01
1998/07/31 15518.35 13530.21
1998/08/31 12395.09 11856.39
1998/09/30 12329.79 11495.48
1998/10/31 13450.68 12696.41
1998/11/30 14353.93 13349.39
1998/12/31 14726.16 13878.56
1999/01/31 15075.74 13840.11
1999/02/28 14507.67 13512.79
1999/03/31 15359.77 14079.52
1999/04/30 16058.94 14652.27
1999/05/31 15283.30 13900.18
1999/06/30 16299.28 14444.52
1999/07/31 16845.50 14876.41
1999/08/31 17020.29 14933.23
1999/09/30 17348.02 15086.15
1999/10/31 18221.98 15653.69
1999/11/30 20122.83 16200.00
1999/12/31 23397.56 17656.38
2000/01/31 21830.81 16536.97
2000/02/29 23892.93 16984.96
2000/03/31 22740.91 17646.18
2000/04/28 20966.79 16720.11
IMATRL PRASUN SHR__CHT 20000430 20000524 110623 R00000000000069
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Aggressive International Fund on November 1,
1994, when the fund started. As the chart shows, by April 30, 2000,
the value of the investment would have grown to $20,967 - a 109.67%
increase on the initial investment. For comparison, look at how the
Morgan Stanley Capital International EAFE Index did over the same
period. With dividends and capital gains, if any, reinvested, the same
$10,000 would have grown to $16,720 - a 67.20% increase.
UNDERSTANDING PERFORMANCE
Many markets around the globe offer the
potential for significant growth over time;
however, investing in foreign markets means
assuming greater risks than investing in the
United States. Factors like changes in a
country's financial markets, its local political
and economic climate, and the fluctuating
value of its currency create these risks. For
these reasons an international fund's
performance may be more volatile than a fund
that invests exclusively in the United States.
Past performance is no guarantee of future
results and you may have a gain or loss when
you sell your shares.
(checkmark)
AGGRESSIVE INTERNATIONAL
FUND TALK: THE MANAGER'S OVERVIEW
(PORTFOLIO MANAGER PHOTO)
NOTE TO SHAREHOLDERS: Kevin McCarey became Portfolio Manager of
Fidelity Aggressive International Fund on December 29, 1999.
Q. HOW DID THE FUND PERFORM, KEVIN?
A. For the six months that ended April 30, 2000, the fund generated a
return of 15.06%. This compared favorably to the Morgan Stanley
Capital International Europe, Australasia, Far East (EAFE) Index,
which returned 6.81% during the same period. The fund also topped the
international funds average, which returned 14.17% according to Lipper
Inc. For the 12 months that ended April 30, 2000, the fund returned
30.56%, while the EAFE Index and Lipper average returned 14.11% and
24.75%, respectively.
Q. WHEN YOU TOOK OVER THE FUND IN LATE DECEMBER, IT HAD A NEW NAME AND
SOME RE-WORKED INVESTMENT POLICIES. CAN YOU EXPLAIN THE RATIONALE
BEHIND THESE CHANGES?
A. Historically, the fund - previously known as Fidelity International
Value Fund - tended to have a more concentrated portfolio than that of
most of Fidelity's other broad-based international funds. Re-naming
the fund and broadening its investment approach gives it more
flexibility to pursue capital growth.
Q. WHAT FACTORS CONTRIBUTED TO THE FUND'S PERFORMANCE?
A. The fund's new focus on more aggressive-oriented investments -
particularly in the technology, media and telecommunications areas -
paid off nicely during the period. The fund's exposure to technology
stocks, in fact, rose from around 9% of net assets six months ago to
33% at the end of the period. Looking deeper, my emphasis on so-called
new economy companies - those that stand to benefit from the rapid
changes brought on by the Internet and technology in general - worked
out well. On the flip side, I reduced the fund's exposure to
industries that had been adversely affected by the new economy trends,
including retail and banking. Finally, I spent considerable time
looking for opportunities in some of the emerging markets, which by
nature are more volatile than developed markets and economies. These
concentrations - coupled with our excellent research team and solid
stock picking - helped the fund beat both its benchmark and its peers.
Q. AT JUST UNDER 25% OF NET ASSETS, JAPAN WAS BY FAR THE LARGEST
MARKET EXPOSURE FOR THE FUND AT THE END OF THE PERIOD. HOW DID THE
JAPANESE MARKET FARE, AND WHAT WAS YOUR STRATEGY?
A. Despite a slowdown in the economic recovery in Japan, four of the
fund's 10 best-performing stocks were based there. Entering the
period, Japan was still enjoying a switch from negative to positive
investor sentiment, based largely on initial signs of an economic
turnaround and a rash of corporate restructuring announcements. As the
period wore on, however - and companies began the actual hard work of
restructuring - the shine wore off and the recovery slowed. Based on
what our research indicated, I decided to trim the fund's Japanese
exposure later in the period. That being said, the fund still realized
significant gains from Furukawa Electric, which is involved in making
optical networking equipment, and Softbank, the country's largest
Internet venture capital firm. Other strong Japanese performances were
turned in by electronics component maker Kyocera and by Daiwa
Securities, a leading brokerage house.
Q. WHAT WAS THE STORY IN THE EMERGING MARKETS?
A. Latin America and Asia both experienced rebounds following an
upturn in economic conditions, and the fund was able to take
advantage. Latin America continued to benefit from the positive impact
of Brazil's currency devaluation in February 1999, and Mexico in
particular performed well as interest rates fell, inflation remained
subdued and oil prices rose. The funds position in Spanish
telecommunications company Telefonica - which has a significant
presence in Latin America - performed well, as did its stake in
Mexican bank Banacci, which the fund no longer owned at the end of the
period. Asia, meanwhile, continued to benefit from its own rebound of
over a year ago, and technology exports improved significantly. The
fund's positions in Taiwan Semiconductor and Samsung Electronics
contributed nicely.
Q. WHAT WAS YOUR STRATEGY WITH RESPECT TO THE FUND'S EUROPEAN
INVESTMENTS?
A. In general, the economic situation continued to be positive
throughout Europe, and the weakening of the euro relative to the
dollar put the wind at the backs of many European exporters. In terms
of my particular focus, I again concentrated on companies that I felt
could benefit from the new economy. Companies are coming to market
with all sorts of new economy spins, and I tried to find
opportunities. One such new economy stock was French software company
ILOG, which performed well during the period. Along with the new
economy angle, wireless technology is evolving quickly in Europe.
Finland, in fact, currently has more cellular phone subscribers than
fixed-line subscribers. Accordingly, the fund's investments in two of
Europe's leading cellular providers - Finland's Nokia and Sweden's
Ericsson - were among the fund's best performers during the period.
Q. WHICH INVESTMENTS WOULD YOU CHARACTERIZE AS DISAPPOINTMENTS?
A. Hikari Tsushin was one of the few Japanese investments that went
sour for the fund. The company - a leading provider of cellular
services - fell mostly due to weaker-than-expected growth forecasts.
Another disappointment was Equant, a Netherlands-based telecom
networking company that suffered from a slowdown in revenue growth.
Q. WHAT'S YOUR OUTLOOK?
A. The economic recovery and corporate restructuring phase should
deepen in Europe, but progress slowly in Japan. In Europe, we should
see more management incentives in terms of salary and stock options,
and we'll also see more companies coming to market under the banner of
the new economy. I'll keep a close eye on that. Japan, meanwhile, is
much earlier in the game and I wouldn't be surprised if we saw a lot
of consolidation activity there over the next year or so. As for the
emerging markets, I'll be keeping tabs on the new government in Russia
and the upcoming presidential election in Mexico.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER AND DO NOT NECESSARILY REPRESENT THE VIEWS OF FIDELITY OR
ANY OTHER PERSON IN THE FIDELITY ORGANIZATION. ANY SUCH VIEWS ARE
SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS
AND FIDELITY DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE
VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS FOR A FIDELITY FUND ARE BASED ON NUMEROUS
FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON
BEHALF OF ANY FIDELITY FUND.
KEVIN MCCAREY ON THE EXPANDING WORLD OF
WIRELESS TECHNOLOGY:
"In Finland, you can point your cell phone at a Coke machine,
make your selection, and see the charge on your next phone
bill. Pretty soon, the Coke machine will have a cell phone
actually embedded inside, and when a particular flavor gets
low in inventory, the bottling company will receive a call . . .
from the Coke machine.
"If you haven't noticed, we're fast becoming a wireless world.
In a couple of years, in fact, the number of people in the world
with cell phones will be greater than those with fixed-line
phones. And a couple of years beyond that, there will be
another dramatic crossover: The number of people accessing
the Internet via wireless will outnumber those accessing the
Web via fixed-line.
"Europe is comfortably ahead of the U.S. in the wireless race,
mostly because Europe's network uses one common
technology called GSM, short for Global Systems for Mobile
Communications. The U.S., on the other hand, has a more
fragmented network, with different technologies competing
against one another. As a result, Europe has a much higher
penetration rate than the U.S. Europe also has a feature
called CPP, or Calling Party Pays. This feature - which
we're all looking forward to in the U.S. - has helped to boost
subscribership. Wireless also is a huge trend throughout the
emerging markets, where it's often easier to build high-quality
cellular networks.
"The fund has taken advantage of the wireless trend by
investing in two types of companies - those that
manufacture the equipment and build the networks and
those that actually operate the systems and sign up
customers. Examples of the former would be Nokia and
Ericsson, while an example of the latter would be Great
Britain's Vodafone AirTouch.
"Big changes are coming for wireless and it should be a big hit.
Internet access through cell phones will increase rapidly and
the smaller phone screens we've become accustomed to will
grow in size. As for dialing numbers, we may see the
touch-screen technology so prevalent on ATMs. And
consumers can actually control the information they receive
- they can get information on their favorite sports teams,
weather in a certain locale or quotes on a particular stock.
What the Internet did for the 1990s, wireless may well
duplicate over the next 10 years."
FUND FACTS
GOAL: seeks growth of capital primarily
through investments in foreign securities
FUND NUMBER: 335
TRADING SYMBOL: FIVFX
START DATE: November 1, 1994
SIZE: as of April 30, 2000, more than
$733 million
MANAGER: Kevin McCarey, since December
1999; manager, Fidelity Europe Capital
Appreciation Fund, 1993-1999; various
Fidelity Select Portfolios, 1986-1990; joined
Fidelity in 1985
(checkmark)
AGGRESSIVE INTERNATIONAL
INVESTMENT CHANGES
AS OF APRIL 30, 2000
United States 7.4%
Finland 7.4%
Row: 1, Col: 1, Value: 7.4
Row: 1, Col: 2, Value: 9.300000000000001
Row: 1, Col: 3, Value: 3.5
Row: 1, Col: 4, Value: 24.9
Row: 1, Col: 5, Value: 4.6
Row: 1, Col: 6, Value: 7.9
Row: 1, Col: 7, Value: 20.0
Row: 1, Col: 8, Value: 4.3
Row: 1, Col: 9, Value: 10.7
Row: 1, Col: 10, Value: 7.4
United Kingdom
10.7%
France 9.3%
Switzerland 4.3%
Germany 3.5%
Japan 24.9%
Other 20.0%
Netherlands 7.9%
Mexico 4.6%
GEOGRAPHIC DIVERSIFICATION (%
OF FUND'S NET ASSETS)
AS OF OCTOBER 31, 1999
United States 7.7%
Row: 1, Col: 1, Value: 12.2
Row: 1, Col: 2, Value: 7.5
Row: 1, Col: 3, Value: 25.5
Row: 1, Col: 4, Value: 2.7
Row: 1, Col: 5, Value: 5.7
Row: 1, Col: 6, Value: 15.4
Row: 1, Col: 7, Value: 3.1
Row: 1, Col: 8, Value: 4.4
Row: 1, Col: 9, Value: 15.8
Row: 1, Col: 10, Value: 7.7
France 12.2%
United Kingdom 15.8%
Germany 7.5%
Switzerland 4.4%
Spain 3.1%
Japan 25.5%
Other 15.4%
Mexico 2.7%
Netherlands 5.7%
PERCENTAGES ARE ADJUSTED FOR THE EFFECT OF FUTURES CONTRACTS, IF
APPLICABLE.
<TABLE>
<CAPTION>
<S> <C> <C>
ASSET ALLOCATION
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Stocks, Investment Companies 93.2 90.5
and Equity Futures
Bonds 0.0 2.5
Short-Term Investments and 6.8 7.0
Net Other Assets
TOP TEN STOCKS BY ISSUER AS
OF APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Nokia AB (Finland, 5.7 2.5
Communications Equipment)
TotalFinaElf SA (France, Oil 4.8 4.0
& Gas)
Koninklijke Philips 4.5 0.6
Electronics NV (Netherlands,
Electrical Equipment)
DDI Corp. (Japan, Telephone 3.3 3.0
Services)
Telefonaktiebolaget LM 3.3 0.0
Ericsson (Sweden,
Communications Equipment)
Taiwan Semiconductor 3.1 0.1
Manufacturing Co. Ltd.
(Taiwan, Electronics)
Vodafone AirTouch PLC 2.7 5.8
(United Kingdom, Cellular)
Furukawa Electric Co. Ltd. 2.6 0.7
(Japan, Electrical Equipment)
Cable & Wireless PLC (United 2.0 0.0
Kingdom, Telephone Services)
Mitsubishi Electric Corp. 1.9 0.0
(Japan, Electrical Equipment)
33.9 16.7
TOP TEN MARKET SECTORS AS OF
APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Technology 33.0 8.8
Utilities 16.1 20.3
Industrial Machinery & 11.9 2.9
Equipment
Finance 10.3 20.4
Media & Leisure 7.6 2.0
Energy 6.1 6.4
Durables 3.4 2.3
Retail & Wholesale 3.2 3.5
Services 0.7 2.7
Health 0.5 4.6
</TABLE>
AGGRESSIVE INTERNATIONAL
INVESTMENTS APRIL 30, 2000 (UNAUDITED)
Showing Percentage of Net Assets
COMMON STOCKS - 93.2%
SHARES VALUE (NOTE 1)
BELGIUM - 0.0%
Telinfo SA 100 $ 11,302
CANADA - 2.4%
Celestica, Inc. (sub. vtg.) 74,800 4,036,008
(a)
Research in Motion Ltd. (a) 117,200 4,978,309
Rogers Communications, Inc. 153,600 3,998,703
Class B (non-vtg.) (a)
Talisman Energy, Inc. (a) 166,400 4,961,210
17,974,230
DENMARK - 0.5%
Novo-Nordisk AS (B Shares) 29,700 3,988,865
FINLAND - 7.4%
JOT Automation Group Oyj 672,700 4,874,403
Nokia AB 741,600 42,178,497
Sonera Corp. 129,300 7,129,954
54,182,854
FRANCE - 9.3%
Canal Plus SA 8,900 1,719,724
Castorama Dubois 10,800 2,362,478
Investissements SA
Coflexip SA 42,100 4,105,809
France Telecom SA 73,900 11,464,018
ILOG SA sponsored ADR (a) 27,000 972,000
TotalFinaElf SA Class B 232,200 35,120,249
Vivendi SA 126,900 12,584,135
68,328,413
GERMANY - 3.5%
Hannover Rueckversicherungs AG 62,700 3,971,780
Intershop Communication AG (a) 11,500 5,125,225
JUMPtec Industrielle 500 47,395
Computertechnik AG (a)
Primacom AG (a) 48,945 3,769,623
Siemens AG 51,300 7,621,454
Software AG (a) 46,400 5,370,993
25,906,470
HONG KONG - 2.6%
China Telecom Ltd. (a) 1,010,000 7,407,719
Giordano International Ltd. 1,868,000 3,057,735
Johnson Electric Holdings 270,000 2,175,155
Ltd.
Li & Fung Ltd. 872,000 3,369,735
Vtech Holdings Ltd. 781,000 3,238,667
19,249,011
INDIA - 1.3%
Housing Development Finance 339,800 3,681,361
Corp. Ltd.
Hughes Software Systems Ltd. 32,300 2,184,412
(c)
Pentafour Software & Exports 195,579 2,847,433
Ltd.
Pentafour Software & Exports 31,621 460,370
Ltd. New
9,173,576
SHARES VALUE (NOTE 1)
IRELAND - 0.2%
SmartForce PLC sponsored ADR 34,200 $ 1,633,050
(a)
ISRAEL - 0.8%
Check Point Software 11,500 1,989,500
Technologies Ltd. (a)
Gilat Satellite Networks Ltd. 20,100 1,726,088
(a)
Orad Hi-Tech Systems Ltd. (a) 50,329 2,293,618
6,009,206
JAPAN - 24.9%
Alpha Systems, Inc. 16,000 3,151,470
Asatsu-DK, Inc. 25,100 1,035,195
Casio Computer Co. Ltd. 614,000 6,756,612
Daiwa Securities Group, Inc. 506,000 7,720,547
DDI Corp. 2,134 24,469,761
FamilyMart Co. Ltd. 87,000 3,185,870
Focus Systems Corp. 81,000 2,883,762
Fuji Television Network, Inc. 206 3,428,888
Fujitsu Ltd. 333,000 9,422,785
Furukawa Electric Co. Ltd. 1,360,000 18,851,859
Hikari Tsushin, Inc. 6,300 908,822
ITOCHU TECHNO-SCIENCE Corp. 4,700 3,742,094
(CTC)
Kyocera Corp. 75,000 12,454,687
Macnica, Inc. 23,400 4,139,467
Mitsubishi Electric Corp. 1,646,000 14,048,992
NEC Corp. 214,000 5,818,014
Nikko Securities Co. Ltd. 772,000 9,102,090
Nippon Systemware Co. Ltd. 31,900 2,094,415
Nomura Securities Co. Ltd. 277,000 6,967,265
Omron Corp. 183,000 4,975,217
Pioneer Corp. 162,000 4,419,271
Shinko Securities Co. Ltd. 1,353,000 5,917,967
Softbank Corp. 11,400 2,804,143
Softbank Corp. New 22,800 5,608,286
Toko, Inc. 875,000 7,282,227
Yahoo Japan Corp. 6 2,996,116
Yamaha Motor Co. Ltd. 971,000 8,278,731
182,464,553
KOREA (SOUTH) - 2.3%
Samsung Electronics Co. Ltd. 44,660 12,072,991
Trigem Computer, Inc. 77,400 4,470,683
16,543,674
MEXICO - 4.6%
Grupo Radio Centro SA de CV 147,200 2,060,800
sponsored ADR
Grupo Televisa SA de CV 166,300 10,549,656
sponsored ADR (a)
Nuevo Grupo Iusacell SA de CV 314,200 5,007,563
sponsored ADR (a)
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
MEXICO - CONTINUED
TV Azteca SA de CV sponsored 802,600 $ 8,828,600
ADR
Wal-Mart de Mexico SA de CV 3,019,000 6,987,310
Series V (a)
33,433,929
NETHERLANDS - 7.9%
Equant NV (a) 130,300 10,112,579
Exact Holdings NV (a) 56,100 3,170,205
Gucci Group NV (NY Shares) 13,300 1,165,413
Koninklijke Philips 741,628 33,169,202
Electronics NV
United Pan-Europe 107,000 3,903,932
Communications NV (a)
Wolters Kluwer NV 266,000 6,293,890
(Certificaten Van Aandelen)
57,815,221
NORWAY - 0.2%
Opticom ASA (a) 13,300 1,405,692
RUSSIA - 0.5%
Vimpel Communications 120,000 4,020,000
sponsored ADR (a)
SOUTH AFRICA - 0.4%
Dimension Data Holdings Ltd. 482,500 3,162,187
(a)
SPAIN - 2.0%
Banco Santander Central 747,700 7,816,704
Hispano SA
Telefonica SA (a) 317,900 7,093,079
14,909,783
SWEDEN - 3.3%
Telefonaktiebolaget LM 271,700 24,028,469
Ericsson (B Shares)
SWITZERLAND - 4.3%
Ascom Holding AG (Bearer) 650 2,212,042
Credit Suisse Group (Reg.) 38,800 7,030,948
Nestle SA (Reg.) 1,842 3,257,522
PubliGroupe SA 5,600 4,332,752
The Swatch Group AG (Bearer) 10,227 10,994,471
UBS AG 14,300 3,514,689
31,342,424
TAIWAN - 3.5%
Hon Hai Precision Industries 280,000 2,699,788
Co. Ltd. (a)
Taiwan Semiconductor 3,572,420 23,002,671
Manufacturing Co. Ltd. (a)
25,702,459
UNITED KINGDOM - 10.7%
Amvescap PLC 873,700 12,602,465
Cable & Wireless PLC 897,500 14,821,050
Carlton Communications PLC 467,400 5,620,060
EMI Group PLC 292,600 2,795,508
Hilton Group PLC 759,300 3,178,948
HSBC Holdings PLC (Reg.) 599,000 6,851,065
SHARES VALUE (NOTE 1)
Manchester United PLC 594,700 $ 3,471,428
Misys PLC 698,300 7,951,650
Synstar PLC (a) 729,500 1,552,591
Vodafone AirTouch PLC 4,176,244 19,628,371
78,473,136
UNITED STATES OF AMERICA - 0.6%
SCM Microsystems, Inc. (a) 48,900 4,049,176
TOTAL COMMON STOCKS 683,807,680
(Cost $602,402,949)
CASH EQUIVALENTS - 14.1%
Central Cash Collateral Fund, 34,598,904 34,598,904
5.94% (b)
Taxable Central Cash Fund, 68,379,668 68,379,668
5.77% (b)
TOTAL CASH EQUIVALENTS 102,978,572
(Cost $102,978,572)
TOTAL INVESTMENT PORTFOLIO - 786,786,252
107.3%
(Cost $705,381,521)
NET OTHER ASSETS - (7.3)% (53,285,495)
NET ASSETS - 100% $ 733,500,757
LEGEND
(a) Non-income producing
(b) The rate quoted is the annualized seven-day yield of the fund at
period end.
(c) Security purchased on a delayed delivery or when-issued basis.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $1,146,254,375 and $1,019,571,717, respectively, of which
long-term U.S. government and government agency obligations aggregated
$0 and $2,097,504, respectively.
The market value of futures contracts opened and closed during the
period amounted to $15,292,769 and $30,480,200, respectively.
The fund placed a portion of its portfolio transactions with brokerage
firms which are affiliates of Fidelity Management & Research Company.
The commissions paid to these affiliated firms were $23,671 for the
period.
The fund participated in the security lending program. At period end,
the value of securities loaned amounted to $33,550,173. The fund
received
cash collateral of $34,598,904 which was invested in cash equivalents.
The fund participated in the bank borrowing program. The average daily
loan balance during the period for which the loan was outstanding
amounted to $3,152,000. The weighted average interest rate was 6.1%.
INCOME TAX INFORMATION
At April 30, 2000, the aggregate cost of investment securities for
income
tax purposes was $707,866,202. Net unrealized appreciation aggregated
$78,920,050, of which $133,994,019 related to appreciated investment
securities and $55,073,969 related to depreciated investment
securities.
AGGRESSIVE INTERNATIONAL
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000 (UNAUDITED)
ASSETS
Investment in securities, at $ 786,786,252
value (cost $705,381,521) -
See accompanying schedule
Foreign currency held at 3,690,189
value (cost $3,689,108)
Receivable for investments 19,025,700
sold
Receivable for fund shares 2,483,724
sold
Dividends receivable 1,053,284
Interest receivable 304,198
Other receivables 30,293
TOTAL ASSETS 813,373,640
LIABILITIES
Payable for investments
purchased
Regular delivery $ 25,983,776
Delayed delivery 2,158,786
Payable for fund shares 16,314,722
redeemed
Accrued management fee 529,708
Other payables and accrued 286,987
expenses
Collateral on securities 34,598,904
loaned, at value
TOTAL LIABILITIES 79,872,883
NET ASSETS $ 733,500,757
Net Assets consist of:
Paid in capital $ 574,278,681
Distributions in excess of (667,104)
net investment income
Accumulated undistributed net 78,644,230
realized gain (loss) on
investments and foreign
currency transactions
Net unrealized appreciation 81,244,950
(depreciation) on
investments and assets and
liabilities in foreign
currencies
NET ASSETS, for 40,305,466 $ 733,500,757
shares outstanding
NET ASSET VALUE, offering $18.20
price and redemption price
per share ($733,500,757
(divided by) 40,305,466
shares)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30,
2000 (UNAUDITED)
INVESTMENT INCOME $ 2,361,970
Dividends
Interest 1,612,401
Security lending 102,299
4,076,670
Less foreign taxes withheld (261,914)
TOTAL INCOME 3,814,756
EXPENSES
Management fee Basic fee $ 2,542,007
Performance adjustment 438,097
Transfer agent fees 696,010
Accounting and security 191,480
lending fees
Non-interested trustees' 983
compensation
Custodian fees and expenses 228,313
Registration fees 121,101
Audit 11,231
Legal 8,051
Interest 1,068
Miscellaneous 52,796
Total expenses before 4,291,137
reductions
Expense reductions (152,492) 4,138,645
NET INVESTMENT INCOME (LOSS) (323,889)
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities 79,436,627
Foreign currency transactions (416,835)
Futures contracts 1,088,180 80,107,972
Change in net unrealized
appreciation (depreciation)
on:
Investment securities (5,093,896)
Assets and liabilities in (193,649)
foreign currencies
Futures contracts (455,349) (5,742,894)
NET GAIN (LOSS) 74,365,078
NET INCREASE (DECREASE) IN $ 74,041,189
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION $ 148,865
Expense reductions Directed
brokerage arrangements
Transfer agent credits 3,627
$ 152,492
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
INCREASE (DECREASE) IN NET SIX MONTHS ENDED APRIL 30, YEAR ENDED OCTOBER 31, 1999
ASSETS 2000 (UNAUDITED)
Operations Net investment $ (323,889) $ 3,313,941
income (loss)
Net realized gain (loss) 80,107,972 65,475,957
Change in net unrealized (5,742,894) 68,197,613
appreciation (depreciation)
NET INCREASE (DECREASE) IN 74,041,189 136,987,511
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (2,183,958) (1,595,857)
From net investment income
In excess of net investment (343,215) -
income
From net realized gain (28,430,593) -
TOTAL DISTRIBUTIONS (30,957,766) (1,595,857)
Share transactions Net 1,325,401,278 690,679,399
proceeds from sales of shares
Reinvestment of distributions 29,282,726 1,458,882
Cost of shares redeemed (1,200,207,174) (700,344,477)
NET INCREASE (DECREASE) IN 154,476,830 (8,206,196)
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) 197,560,253 127,185,458
IN NET ASSETS
NET ASSETS
Beginning of period 535,940,504 408,755,046
End of period (including $ 733,500,757 $ 535,940,504
under (over) distribution of
net investment income of
$(667,104) and $3,735,473,
respectively)
OTHER INFORMATION
Shares
Sold 68,406,536 47,825,870
Issued in reinvestment of 1,629,534 112,655
distributions
Redeemed (61,853,735) (48,889,094)
Net increase (decrease) 8,182,335 (950,569)
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SIX MONTHS ENDED APRIL 30, 2000 YEARS ENDED OCTOBER 31,
SELECTED PER-SHARE DATA (UNAUDITED) 1999 1998 1997 1996
Net asset value, beginning of $ 16.68 $ 12.36 $ 12.47 $ 11.33 $ 10.63
period
Income from Investment
Operations
Net investment income (loss) (.01) D .11 D .09 D .13 D .16 E
Net realized and unrealized 2.51 4.26 .14 F 1.33 .85
gain (loss)
Total from investment 2.50 4.37 .23 1.46 1.01
operations
Less Distributions
From net investment income (.07) (.05) (.06) (.10) (.01)
In excess of net investment (.01) - - - -
income
From net realized gain (.90) - (.28) (.22) (.30)
Total distributions (.98) (.05) (.34) (.32) (.31)
Net asset value, end of period $ 18.20 $ 16.68 $ 12.36 $ 12.47 $ 11.33
TOTAL RETURN B, C 15.06% 35.47% 1.95% 13.20% 9.64%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 733,501 $ 535,941 $ 408,755 $ 402,747 $ 270,865
(000 omitted)
Ratio of expenses to average 1.24% A 1.21% 1.23% 1.30% 1.28%
net assets
Ratio of expenses to average 1.20% A, H 1.14% H 1.21% H 1.28% H 1.26% H
net assets after expense
reductions
Ratio of net investment (.09)% A .75% .71% 1.03% 1.74%
income (loss) to average net
assets
Portfolio turnover rate 323% A 173% 137% 86% 71%
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS
OF LESS THAN ONE YEAR ARE
NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
D NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
E INVESTMENT INCOME PER SHARE
REFLECTS A SPECIAL DIVIDEND
WHICH AMOUNTED TO $.04 PER
SHARE.
F THE AMOUNT SHOWN FOR A
SHARE OUTSTANDING DOES NOT
CORRESPOND WITH THE
AGGREGATE NET LOSS ON
INVESTMENTS FOR THE PERIOD
DUE TO THE TIMING OF SALES
AND REPURCHASES OF FUND
SHARES IN RELATION TO
FLUCTUATING MARKET VALUES OF
THE INVESTMENTS OF THE FUND.
G FOR THE PERIOD NOVEMBER 1,
1994 (COMMENCEMENT OF
OPERATIONS) TO OCTOBER 31,
1995.
H FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA 1995 G
Net asset value, beginning of $ 10.00
period
Income from Investment
Operations
Net investment income (loss) .11 D
Net realized and unrealized .52
gain (loss)
Total from investment .63
operations
Less Distributions
From net investment income -
In excess of net investment -
income
From net realized gain -
Total distributions -
Net asset value, end of period $ 10.63
TOTAL RETURN B, C 6.30%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 56,828
(000 omitted)
Ratio of expenses to average 1.72%
net assets
Ratio of expenses to average 1.72%
net assets after expense
reductions
Ratio of net investment 1.08%
income (loss) to average net
assets
Portfolio turnover rate 109%
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS
OF LESS THAN ONE YEAR ARE
NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
D NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
E INVESTMENT INCOME PER SHARE
REFLECTS A SPECIAL DIVIDEND
WHICH AMOUNTED TO $.04 PER
SHARE.
F THE AMOUNT SHOWN FOR A
SHARE OUTSTANDING DOES NOT
CORRESPOND WITH THE
AGGREGATE NET LOSS ON
INVESTMENTS FOR THE PERIOD
DUE TO THE TIMING OF SALES
AND REPURCHASES OF FUND
SHARES IN RELATION TO
FLUCTUATING MARKET VALUES OF
THE INVESTMENTS OF THE FUND.
G FOR THE PERIOD NOVEMBER 1,
1994 (COMMENCEMENT OF
OPERATIONS) TO OCTOBER 31,
1995.
H FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
</TABLE>
OVERSEAS
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value).
CUMULATIVE TOTAL RETURNS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PERIODS ENDED OCTOBER 31, 1994 PAST 6 MONTHS PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY OVERSEAS 13.36% 25.74% 105.35% 169.16%
MSCI EAFE 6.81% 14.11% 64.91% 135.87%
International Funds Average 14.17% 24.75% 89.12% 169.74%
</TABLE>
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or 10 years. For example, if you had invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment
would be $1,050. You can compare the fund's returns to the performance
of the Morgan Stanley Capital International Europe, Australasia, Far
East (EAFE) Index - a market capitalization-weighted index that is
designed to represent the performance of developed stock markets
outside the United States and Canada. As of April 30, 2000, the index
included over 950 equity securities of companies domiciled in 20
countries. To measure how the fund's performance stacked up against
its peers, you can compare it to the international funds average,
which reflects the performance of mutual funds with similar objectives
tracked by Lipper Inc. The past six months average represents a peer
group of 675 mutual funds. These benchmarks include reinvested
dividends and capital gains, if any, and exclude the effect of sales
charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1994 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY OVERSEAS 25.74% 15.48% 10.41%
MSCI EAFE 14.11% 10.52% 8.96%
International Funds Average 24.75% 13.15% 10.15%
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER 10 YEARS
Overseas MS EAFE (Net MA tax)
00094 MS001
1990/04/30 10000.00 10000.00
1990/05/31 10679.61 11141.01
1990/06/30 10870.19 11042.89
1990/07/31 11405.97 11198.43
1990/08/31 10143.83 10110.97
1990/09/30 9018.34 8701.86
1990/10/31 9877.74 10057.77
1990/11/30 9550.52 9464.48
1990/12/31 9470.74 9617.81
1991/01/31 9680.86 9928.89
1991/02/28 10032.33 10993.26
1991/03/31 9703.78 10333.31
1991/04/30 9841.31 10434.78
1991/05/31 9860.42 10543.66
1991/06/30 9241.51 9768.91
1991/07/31 9745.80 10248.87
1991/08/31 9818.39 10040.74
1991/09/30 10250.10 10606.62
1991/10/31 10284.48 10756.98
1991/11/30 9913.90 10254.80
1991/12/31 10286.49 10784.39
1992/01/31 10404.59 10554.03
1992/02/29 10188.76 10176.28
1992/03/31 9977.00 9504.48
1992/04/30 10583.76 9549.66
1992/05/31 11039.86 10188.87
1992/06/30 10779.23 9705.59
1992/07/31 10095.09 9457.20
1992/08/31 10009.58 10050.36
1992/09/30 9594.21 9851.89
1992/10/31 8942.65 9335.12
1992/11/30 8897.85 9422.96
1992/12/31 9108.10 9471.70
1993/01/31 9373.56 9470.54
1993/02/28 9565.79 9756.61
1993/03/31 10215.72 10607.05
1993/04/30 10925.14 11613.69
1993/05/31 11176.87 11858.97
1993/06/30 10911.41 11673.94
1993/07/31 11410.30 12082.59
1993/08/31 12055.64 12734.84
1993/09/30 11950.37 12448.19
1993/10/31 12430.95 12831.81
1993/11/30 11863.41 11710.18
1993/12/31 12756.26 12555.74
1994/01/31 13663.11 13617.27
1994/02/28 13407.33 13579.55
1994/03/31 13021.34 12994.66
1994/04/30 13458.49 13546.01
1994/05/31 13286.42 13468.24
1994/06/30 13109.70 13658.57
1994/07/31 13477.09 13789.93
1994/08/31 13672.41 14116.41
1994/09/30 13295.72 13671.80
1994/10/31 13565.45 14127.07
1994/11/30 13007.39 13448.12
1994/12/31 12918.38 13532.33
1995/01/31 12364.73 13012.48
1995/02/28 12374.19 12975.14
1995/03/31 12743.29 13784.41
1995/04/30 13107.66 14302.82
1995/05/31 13292.20 14132.32
1995/06/30 13391.58 13884.49
1995/07/31 13992.54 14748.89
1995/08/31 13604.52 14186.27
1995/09/30 13793.80 14463.33
1995/10/31 13519.34 14074.55
1995/11/30 13670.76 14466.16
1995/12/31 14088.16 15049.00
1996/01/31 14354.71 15110.78
1996/02/29 14383.79 15161.87
1996/03/31 14597.02 15483.85
1996/04/30 14994.42 15934.01
1996/05/31 14999.27 15640.80
1996/06/30 15110.73 15728.83
1996/07/31 14689.10 15269.11
1996/08/31 14795.72 15302.57
1996/09/30 15222.19 15709.10
1996/10/31 15062.27 15548.34
1996/11/30 15857.06 16166.99
1996/12/31 15933.47 15959.02
1997/01/31 15943.80 15403.64
1997/02/28 16300.29 15659.34
1997/03/31 16444.95 15718.85
1997/04/30 16568.94 15805.30
1997/05/31 17581.58 16836.92
1997/06/30 18496.05 17767.99
1997/07/31 19110.86 18057.97
1997/08/31 17690.07 16711.75
1997/09/30 18955.86 17650.46
1997/10/31 17628.08 16298.25
1997/11/30 17545.41 16135.27
1997/12/31 17673.39 16279.04
1998/01/31 18238.24 17026.57
1998/02/28 19264.75 18122.23
1998/03/31 20144.62 18683.65
1998/04/30 20709.47 18834.62
1998/05/31 20676.88 18746.66
1998/06/30 20475.93 18891.95
1998/07/31 20649.73 19086.91
1998/08/31 16923.87 16725.67
1998/09/30 16913.01 16216.54
1998/10/31 18439.20 17910.68
1998/11/30 19520.02 18831.83
1998/12/31 19942.28 19578.32
1999/01/31 20224.96 19524.09
1999/02/28 19676.24 19062.34
1999/03/31 20502.09 19861.82
1999/04/30 21405.53 20669.79
1999/05/31 20435.58 19608.83
1999/06/30 21549.64 20376.71
1999/07/31 22175.95 20985.98
1999/08/31 22486.34 21066.14
1999/09/30 22785.64 21281.86
1999/10/31 23744.51 22082.48
1999/11/30 25490.43 22853.16
1999/12/31 28495.01 24907.66
2000/01/31 26874.70 23328.52
2000/02/29 28364.44 23960.48
2000/03/31 28649.33 24893.27
2000/04/28 26916.24 23586.87
IMATRL PRASUN SHR__CHT 20000430 20000524 110632 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was
invested in Fidelity Overseas Fund on April 30, 1990. As the chart
shows, by April 30, 2000, the value of the investment would have grown
to $26,916 - a 169.16% increase on the initial investment. For
comparison, look at how the Morgan Stanley Capital International EAFE
Index did over the period. With dividends and capital gains, if any,
reinvested, the same $10,000 investment would have grown to $23,587 -
a 135.87% increase.
UNDERSTANDING PERFORMANCE
Many markets around the globe offer the
potential for significant growth over time;
however, investing in foreign markets means
assuming greater risks than investing in the
United States. Factors like changes in a
country's financial markets, its local political
and economic climate, and the fluctuating
value of its currency create these risks. For
these reasons an international fund's
performance may be more volatile than a fund
that invests exclusively in the United States.
Past performance is no guarantee of future
results and you may have a gain or loss when
you sell your shares.
(checkmark)
OVERSEAS
FUND TALK: THE MANAGER'S OVERVIEW
(PORTFOLIO MANAGER PHOTO)
An interview with
Rick Mace, Portfolio
Manager of Fidelity
Overseas Fund
Q. HOW DID THE FUND PERFORM, RICK?
A. For the six months that ended April 30, 2000, the fund returned
13.36%. The Morgan Stanley Capital International EAFE Index - a broad
measure of stock performance in Europe, Australasia and the Far East -
returned 6.81% during that time frame, while the international funds
average as tracked by Lipper Inc. returned 14.17%. For the 12 months
that ended April 30, 2000, the fund returned 25.74%, while the EAFE
index and Lipper average returned 14.11% and 24.75%, respectively,
during the same period.
Q. WHY DID THE FUND OUTPERFORM ITS INDEX DURING THE PAST SIX MONTHS?
A. The fund's technology-related stocks provided the most significant
contribution to performance over the period. Japanese new economy
stocks were particular standouts. Among these were such companies as
Kyocera and Furukawa - companies that provide materials and components
used in the manufacture of electronics equipment such as cellular
phones. Another strong contributor was Softbank, a Japanese company
with investments in more than 100 Internet-related companies.
Similarly, holdings in European telephone utilities and
telecommunications equipment manufacturers continued to make
substantial contributions to the fund's performance.
Q. THERE SEEMED TO BE AN EFFORT TO MAKE THE FUND MORE CONCENTRATED
DURING THE PERIOD . . .
A. That's true. It was an extremely difficult period. Volatile market
conditions created some unusual opportunities to buy more of the
fund's most attractive stocks at cheaper prices. Therefore, I
eliminated some of the fund's smaller and less attractive stocks to
increase holdings in the stocks with the greatest potential for
growth. My effort to increase the fund's concentration reduced the
total number of stocks in the portfolio by about 25%. The fund's
concentration also was increased as a result of robust
merger-and-acquisition activity across many sectors, eliminating many
of the fund's stocks - such as Orange and Mannesmann - which were
recently acquired by competitors. Higher concentration may slightly
increase the volatility of the portfolio; however, the potential
excess returns should more than compensate for the increase in
volatility.
Q. THE FUND'S ENERGY POSITION ROSE TO 8.5% OF NET ASSETS, FROM 6.8%
THE PRIOR PERIOD. WHAT WAS YOUR STRATEGY THERE?
A. The energy sector looked attractive for several reasons. First,
OPEC (Organization of Petroleum Exporting Countries) curtailed
production during a period of increasing global demand, and this
caused oil and product inventories to fall to very low levels. Second,
as demand continued to grow and inventories remained relatively low, I
felt that prices might remain above the levels most investors were
expecting. That meant that energy stocks were cheap as they reflected
a $16-$18 per-barrel oil price assumption. Third, I thought the
earnings estimates for these companies were generally too low. Most
were generating substantial cash flow and were benefiting from
continuing industry consolidation activity. In this environment, I
added to some of the fund's existing positions in oil producers such
as TotalFinaElf and BP Amoco. In addition, I initiated positions in a
number of tanker stocks on expectations that OPEC would need to
increase production in an effort to ease oil prices. This worked out
well as production quotas were eventually raised and demand for
tankers increased substantially. Tanker rates on some routes rose to
their highest level in years. Among the fund's holdings that benefited
most were Overseas Shipholding and Bergesen.
Q. IT SEEMED YOU FOUND SOME ADDITIONAL ENERGY OPPORTUNITIES IN CANADA
. . .
A. The Canadian energy stocks offered more rapid production growth
than the major integrated producers, such as Shell or BP Amoco, yet
they traded at substantially lower multiples of cash flow and
earnings. The fund invested nearly 1.5% of its net assets in a group
of Canadian energy stocks; some examples included Talisman, Rio Alto
Exploration, Crestar and Anderson Exploration.
Q. WHAT WERE SOME OF THE FUND'S TOP PERFORMERS? WHICH STOCKS
DISAPPOINTED?
A. Most of the fund's top contributors came from the
telecommunications area, which experienced greater-than-expected
growth. These stocks - including Nokia, Ericsson, Kyocera and
Mannesmann - all benefited from increased usage of cellular
transmission that fueled higher revenues in the industry. The number
of people using cell phones has grown much faster than most industry
analysts had expected. Higher phone sales boosted earnings for Nokia,
which primarily makes handsets, Ericsson, which builds out the
infrastructure for transmission, and Kyocera, which makes the internal
components for handsets. Germany-based Mannesmann's stock price also
soared as investors reacted positively to its deal to be acquired by
U.K.-based Vodafone AirTouch. On the down side, investors punished
Japan-based Hikari Tsushin, which sells handsets, after the company
announced it would fail to meet its earnings and sales targets.
Q. WHAT'S YOUR OUTLOOK, RICK?
A. I will continue to look for undervalued companies that have decent
growth prospects and are consistently reporting strong earnings. In
partnership with our team of 100 international research analysts, we
will maintain our global stock selection process using a bottom-up
approach, while at the same time monitoring country and industry
weightings. I expect consolidation to remain a major theme across a
variety of sectors as corporate managements seek to cut costs, boost
growth, and increase their global competitiveness by acquiring
competitors.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER AND DO NOT NECESSARILY REPRESENT THE VIEWS OF FIDELITY OR
ANY OTHER PERSON IN THE FIDELITY ORGANIZATION. ANY SUCH VIEWS ARE
SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS
AND FIDELITY DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE
VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS FOR A FIDELITY FUND ARE BASED ON NUMEROUS
FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON
BEHALF OF ANY FIDELITY FUND.
RICK MACE ON OVERSEAS INVESTING OPPORTUNITIES:
"Two important new trends in overseas investing helped fuel
the strong performance of international equities during the
past year - an increasing focus on maximizing shareholder
value and a significant global shift to equities as an investor's
major retirement savings vehicle. For U.S. investors, these
trends should make a compelling case for investing a portion
of your portfolio overseas.
"First, more company executives overseas are placing an
emphasis on getting the stock prices of their firms higher.
The increasing number of corporate announcements from
international companies detailing restructuring efforts and
mergers and acquisitions is evidence of this trend. Increased
competition from abroad has forced industry consolidation
to the forefront of corporate boardrooms. In the third quarter
of 1999, Europe outpaced the U.S. in merger-and-acquisition
activity for the first time in seven years. Examples of this
global trend, which spans a broad number of sectors, include:
the U.K.-based Vodafone's $66 billion merger with U.S.-based
AirTouch; the U.K.-based Cable & Wireless PLC's bid to
acquire IDC, a Japanese telecom company; and Renault of
France's purchase of a 36.8% stake in Nissan. This increase
in merger- and-acquisition activity underscores a common
goal of many companies to improve the bottom line by
becoming a bigger presence globally and reducing costs
through economies of scale. Additionally, compensation
packages for management teams are changing to better
reflect shareholders' interests.
"Second, it is likely that equities will begin to play a much
more prominent role in the future savings of European
investors. Compared to Americans, overseas investors put
a smaller percentage of retirement assets in equity
investments. In Japan, for instance, there is no retirement
savings equivalent to the U.S.' 401(k) plan. However,
Japanese investors historically have maintained among the
highest savings rates in the world, but have opted for lower
interest-yielding government-sponsored savings accounts. A
number of recent factors - deregulation of the Japanese
financial services industry, limited funded private pension
systems and legislation to encourage new retirement vehicles
- should foster increased investment in equities going
forward and ultimately drive prices higher."
FUND FACTS
GOAL: seeks growth of capital primarily
through investments in foreign securities
FUND NUMBER: 094
TRADING SYMBOL: FOSFX
START DATE: December 4, 1984
SIZE: as of April 30, 2000, more than
$5.4 billion
MANAGER: Richard Mace, since 1996;
manager, Fidelity Global Balanced Fund,
since 1996; Fidelity Aggressive International
Fund, 1994-1999; Group Leader, Fidelity
international funds, since 1996; joined Fidelity
in 1987
(checkmark)
OVERSEAS
INVESTMENT CHANGES
AS OF APRIL 30, 2000
United States 7.3%
Finland 4.7%
Row: 1, Col: 1, Value: 4.7
Row: 1, Col: 2, Value: 10.4
Row: 1, Col: 3, Value: 5.3
Row: 1, Col: 4, Value: 24.2
Row: 1, Col: 5, Value: 2.7
Row: 1, Col: 6, Value: 7.5
Row: 1, Col: 7, Value: 18.6
Row: 1, Col: 8, Value: 3.7
Row: 1, Col: 9, Value: 15.6
Row: 1, Col: 10, Value: 7.3
France 10.4%
United Kingdom 15.6%
Germany 5.3%
Switzerland 3.7%
Japan 24.2%
Other 18.6%
Mexico 2.7%
Netherlands 7.5%
GEOGRAPHIC DIVERSIFICATION (%
OF FUND'S NET ASSETS)
AS OF OCTOBER 31, 1999
United States 9.2%
Finland 2.5%
Row: 1, Col: 1, Value: 2.5
Row: 1, Col: 2, Value: 12.0
Row: 1, Col: 3, Value: 7.5
Row: 1, Col: 4, Value: 3.1
Row: 1, Col: 5, Value: 24.9
Row: 1, Col: 6, Value: 6.1
Row: 1, Col: 7, Value: 11.7
Row: 1, Col: 8, Value: 5.1
Row: 1, Col: 9, Value: 17.9
Row: 1, Col: 10, Value: 9.199999999999999
France 12.0%
United Kingdom 17.9%
Germany 7.5%
Italy 3.1%
Switzerland 5.1%
Other 11.7%
Japan 24.9%
Netherlands 6.1%
PERCENTAGES ARE ADJUSTED FOR THE EFFECT OF FUTURES CONTRACTS, IF
APPLICABLE.
<TABLE>
<CAPTION>
<S> <C> <C>
ASSET ALLOCATION
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Stocks, Investment Companies 94.2 90.2
and Equity Futures
Bonds 0.2 1.7
Short-Term Investments and 5.6 8.1
Net Other Assets
TOP TEN STOCKS BY ISSUER AS
OF APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Vodafone AirTouch PLC 3.9 2.9
(United Kingdom, Cellular)
TotalFinaElf SA (France, Oil 3.8 2.9
& Gas)
Nokia AB (Finland, 3.6 1.6
Communications Equipment)
Kyocera Corp. (Japan, 2.6 1.3
Electronics)
Furukawa Electric Co. Ltd. 2.4 0.8
(Japan, Electrical Equipment)
Telefonaktiebolaget LM 2.3 0.8
Ericsson (Sweden,
Communications Equipment)
Koninklijke Philips 2.0 0.6
Electronics NV (Netherlands,
Electrical Equipment)
BP Amoco PLC (United 2.0 1.3
Kingdom, Oil & Gas)
France Telecom SA (France, 1.5 0.9
Telephone Services)
Deutsche Telekom AG 1.4 1.1
(Germany, Telephone Services)
25.5 14.2
TOP TEN MARKET SECTORS AS OF
APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Technology 20.7 8.7
Utilities 19.9 16.3
Finance 13.5 20.6
Energy 8.5 6.8
Industrial Machinery & 8.3 4.9
Equipment
Media & Leisure 5.4 2.1
Health 4.0 7.9
Basic Industries 2.8 4.5
Retail & Wholesale 2.3 3.6
Nondurables 2.1 5.1
</TABLE>
OVERSEAS
INVESTMENTS APRIL 30, 2000 (UNAUDITED)
Showing Percentage of Net Assets
COMMON STOCKS - 93.5%
SHARES VALUE (NOTE 1)
AUSTRALIA - 1.3%
Australia & New Zealand 489,092 $ 3,381,566
Banking Group Ltd.
Broken Hill Proprietary Co. 549,886 5,921,193
Ltd.
Cable & Wireless Optus Ltd. 5,278,600 17,045,885
(a)
Commonwealth Bank of Australia 959,200 14,608,056
News Corp. Ltd. 1,471,848 18,690,375
News Corp. Ltd. sponsored ADR 312,800 13,763,200
(preferred ltd. vtg.)
73,410,275
BELGIUM - 0.2%
Electrabel SA 41,400 10,033,479
BRAZIL - 0.2%
Telesp Celular Participacoes 258,400 11,401,900
SA ADR
BRITISH VIRGIN ISLANDS - 0.0%
El Sitio, Inc. 168,300 1,809,225
CANADA - 2.3%
Alberta Energy Co. Ltd. 174,200 5,511,393
Anderson Exploration Ltd. (a) 385,300 6,166,673
BCE, Inc. 111,900 12,959,785
Canadian Natural Resources 296,300 7,903,734
Ltd. (a)
Celestica, Inc. (sub. vtg.) 376,900 20,336,514
(a)
Cinar Films, Inc. Class B 251,800 881,300
(sub. vtg.) (a)
Crestar Energy, Inc. (a) 511,300 7,251,013
Mitel Corp. (a) 207,000 5,186,183
Rio Alto Exploration Ltd. (a) 348,300 6,115,478
Suncor Energy, Inc. 130,100 5,557,013
Talisman Energy, Inc. (a) 1,185,300 35,339,678
Telesystem International 390,000 12,905,186
Wireless, Inc. (sub. vtg.)
(a)
126,113,950
DENMARK - 0.4%
Carlsberg AS (A Shares) 173,200 5,350,183
Novo-Nordisk AS (B Shares) 120,400 16,170,348
21,520,531
FINLAND - 4.7%
Metsa-Serla Oyj Class B Free 290,500 2,470,362
Shares
Nokia AB 3,463,600 196,992,248
Sampo Insurance Co. Ltd. 239,400 9,077,167
Sonera Corp. 399,300 22,018,490
UPM-Kymmene Corp. 1,072,819 27,867,895
258,426,162
FRANCE - 10.4%
Aventis SA 313,375 17,627,344
AXA SA de CV 235,665 35,033,369
Banque Nationale de Paris 295,610 23,952,659
(BNP)
Canal Plus SA 64,400 12,443,845
Cap Gemini SA 52,222 10,281,112
Carrefour SA 115,600 7,544,035
Castorama Dubois 12,445 2,722,319
Investissements SA
SHARES VALUE (NOTE 1)
Compagnie de St. Gobain 43,600 $ 5,964,857
France Telecom SA 510,000 79,115,683
ILOG SA sponsored ADR (a) 91,900 3,308,400
Lafarge SA 55,400 4,600,033
Rhodia SA 691,000 12,848,164
Sanofi-Synthelabo SA 357,300 13,368,388
Societe Generale Class A 78,300 16,257,297
Suez Lyonnaise des Eaux 60,900 9,575,010
Television Francaise 1 SA 59,600 40,904,782
TotalFinaElf SA Class B 1,374,710 207,924,882
Transiciel SA 13,600 1,819,692
Vivendi SA 660,900 65,538,651
570,830,522
GERMANY - 5.2%
ACG AG 7,200 1,738,784
Allianz AG (Reg.) 86,100 33,218,825
BASF AG 417,400 18,295,323
Bayer AG 322,500 13,471,391
Deutsche Telekom AG 1,201,900 78,205,729
Epcos AG 79,400 11,217,215
Intershop Communication AG (a) 12,600 5,615,464
JUMPtec Industrielle 25,310 2,399,155
Computertechnik AG (a)
Kali Und Salz Beteiligungs AG 1,099,600 14,722,765
Munich Reinsurance AG (Reg.) 51,500 15,138,045
Primacom AG (a) 92,668 7,137,060
Siemens AG 356,100 52,904,477
Software AG (a) 33,900 3,924,066
United Internet AG (a) 40,300 10,394,996
Veba AG 307,450 15,468,437
283,851,732
HONG KONG - 1.3%
China Telecom Ltd. (a) 6,728,000 49,345,675
Hutchison Whampoa Ltd. 958,000 13,959,636
Johnson Electric Holdings 880,000 7,089,394
Ltd.
70,394,705
IRELAND - 0.3%
Bank of Ireland, Inc. 2,088,298 14,085,006
Trintech Group PLC sponsored 16,800 453,600
ADR
14,538,606
ISRAEL - 0.1%
Check Point Software 45,400 7,854,200
Technologies Ltd. (a)
ITALY - 1.9%
Assicurazioni Generali Spa 541,400 15,400,856
Banca Intesa Spa 2,618,737 9,771,755
Olivetti & Co. Spa (a) 3,512,700 11,589,975
San Paolo Imi Spa 748,900 10,539,111
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
ITALY - CONTINUED
Telecom Italia Mobile Spa 2,465,100 $ 23,602,796
Telecom Italia Spa 2,186,470 31,239,186
102,143,679
JAPAN - 24.2%
Asatsu-DK, Inc. 336,000 13,857,592
Canon, Inc. 698,000 32,413,375
Dai-Ichi Kangyo Bank Ltd. 1,491,000 12,353,764
Daiwa Securities Group, Inc. 3,030,000 46,231,736
DDI Corp. 5,118 58,686,147
Fuji Bank Ltd. 1,719,000 14,306,455
Fuji Photo Film Co. Ltd. 287,000 11,767,000
Fuji Television Network, Inc. 788 13,116,331
Fujitsu Ltd. 1,193,000 33,757,906
Furukawa Electric Co. Ltd. 9,613,000 133,252,145
Hikari Tsushin, Inc. 47,700 6,881,080
Honda Motor Co. Ltd. (a) 392,000 17,346,000
Hoya Corp. 174,000 17,699,279
Ito-Yokado Co. Ltd. 703,000 51,291,566
Kadokawa Shoten Publishing 6,500 1,051,877
Co. Ltd.
KDD Corp. 137,300 15,896,024
Koa Denko Co. Ltd. 206,000 5,981,505
Kyocera Corp. 846,700 140,605,118
Mitsubishi Electric Corp. 2,434,000 20,774,755
Mitsubishi Estate Co. Ltd. 1,153,000 12,954,457
Mitsui Fudosan Co. Ltd. 515,000 5,229,055
Murata Manufacturing Co. Ltd. 113,000 21,943,776
NEC Corp. 995,000 27,051,045
Net One Systems Co. Ltd. 287 9,793,138
Nikko Securities Co. Ltd. 3,530,000 41,619,659
Nintendo Co. Ltd. 73,100 12,167,560
Nippon Telegraph & Telephone 4,933 61,126,502
Corp.
Nippon Zeon Co. Ltd. 1,347,000 8,345,571
Nomura Securities Co. Ltd. 1,877,000 47,211,392
NTT DoCoMo, Inc. 1,131 37,755,779
Oki Electric Industry Co. 1,354,000 9,515,813
Ltd. (a)
Omron Corp. 2,054,000 55,842,056
ORIX Corp. 106,960 15,251,740
Pioneer Corp. 421,000 11,484,649
Rohm Co. Ltd. 45,300 15,164,231
Sakura Bank Ltd. 2,021,000 14,166,062
Sharp Corp. 547,000 10,546,467
Shin-Etsu Chemical Co. Ltd. 161,000 8,501,110
Softbank Corp. 83,200 20,465,323
Softbank Corp. New 166,400 40,930,645
Sony Corp. 205,300 23,160,406
Sony Corp. New 165,600 18,681,750
Square Co. Ltd. 6,550 481,529
Takeda Chemical Industries 825,000 54,242,186
Ltd.
Toko, Inc. 1,113,000 9,262,992
Tokyo Broadcasting System, 256,000 11,126,318
Inc.
SHARES VALUE (NOTE 1)
Tokyo Seimitsu Co. Ltd. 276,300 $ 28,871,740
Tokyo Tomin Bank Ltd. 46,800 1,471,426
Toyota Motor Corp. 253,000 12,642,094
Trans Cosmos, Inc. 59,000 11,730,165
Tsubaki Nakashima Co. Ltd. 29,500 368,818
Yahoo Japan Corp. 4 1,997,411
Yamanouchi Pharmaceutical Co. 221,000 11,669,225
Ltd.
Yokogawa Electric Corp. 961,000 7,331,468
1,327,373,213
KOREA (SOUTH) - 2.0%
Daelim Industrial Co. 13,958 77,855
Hyundai Electronics 470,570 7,462,972
Industries Co. Ltd. (a)
Samsung Electro-Mechanics Co. 283,210 19,267,726
Samsung Electronics Co. Ltd. 194,900 52,687,551
SK Telecom Co. Ltd. ADR 651,700 20,895,131
Trigem Computer, Inc. 117,100 6,763,786
107,155,021
LUXEMBOURG - 0.1%
Thiel Logistik AG (a) 108,140 6,751,648
MARSHALL ISLANDS - 0.5%
Teekay Shipping Corp. 866,000 28,415,625
MEXICO - 2.7%
Grupo Televisa SA de CV 451,400 28,635,688
sponsored ADR (a)
Telefonos de Mexico SA de CV 976,100 57,406,881
Series L sponsored ADR
Tubos de Acero de Mexico SA 87,000 1,299,563
sponsored ADR
TV Azteca SA de CV sponsored 3,538,000 38,918,000
ADR
Wal-Mart de Mexico SA de CV 9,425,000 21,813,647
Series V (a)
148,073,779
NETHERLANDS - 7.5%
ABN AMRO Holding NV 761,500 15,720,667
Aegon NV 172,700 12,443,056
Akzo Nobel NV 459,200 18,846,759
Equant NV (NY Shares) (a) 809,400 63,133,200
Fortis Amev NV 713,565 17,989,478
Heineken NV 176,200 9,796,447
ING Groep NV (Certificaten 654,282 35,792,647
Van Aandelen)
Koninklijke Ahold NV 1,112,149 26,000,589
Koninklijke KPN NV 218,300 22,055,773
Koninklijke Philips 2,491,956 111,452,362
Electronics NV
Nutreco Holding NV 235,122 9,161,408
STMicroelectronics NV 67,600 12,932,783
United Pan-Europe 489,200 17,848,630
Communications NV (a)
Vendex KBB NV 910,300 14,063,295
VNU NV 204,300 10,958,413
Wolters Kluwer NV 445,700 10,545,816
(Certificaten Van Aandelen)
408,741,323
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
NORWAY - 0.8%
Bergesen dy ASA:
(A Shares) 876,700 $ 14,756,866
(B Shares) 686,600 10,981,115
DNB Holding ASA 1,568,400 5,507,989
Opticom ASA (a) 75,300 7,958,540
Tandberg ASA (a) 216,100 3,311,174
VMETRO ASA 229,100 2,126,717
44,642,401
SINGAPORE - 0.3%
Chartered Semiconductor 70,200 6,133,725
Manufacturing Ltd.
Overseas Union Bank Ltd. 1,616,771 7,389,870
United Overseas Bank Ltd. 610,368 4,256,302
17,779,897
SPAIN - 2.0%
Altadis SA 461,007 5,432,990
Banco Santander Central 2,900,516 30,322,956
Hispano SA
Telefonica SA (a) 3,223,100 71,914,761
107,670,707
SWEDEN - 2.5%
Elanders AB (B Shares) 75,000 2,402,338
Investor AB (B Shares) 170,100 2,400,390
Netcom AB (B Shares) (a) 46,200 3,296,008
Telefonaktiebolaget LM 1,447,600 128,022,125
Ericsson (B Shares)
136,120,861
SWITZERLAND - 3.7%
ABB Ltd. (Reg.) 112,418 12,654,382
Ascom Holding AG (Bearer) 1,090 3,709,424
Credit Suisse Group (Reg.) 190,200 34,466,143
Fantastic Corp. (a) 270,800 4,961,095
Gretag Imaging Holding AG 300 60,471
(Reg. D)
Julius Baer Holding AG 2,712 9,513,298
Nestle SA (Reg.) 28,900 51,108,784
Novartis AG (Reg.) 10,072 14,114,862
Roche Holding AG 1,930 20,220,652
participation certificates
Swiss Reinsurance Co. (Reg.) 4,843 7,806,837
The Swatch Group AG (Reg.) 64,200 14,528,098
UBS AG 98,911 24,310,586
Valora Holding AG 15,900 4,143,805
201,598,437
TAIWAN - 1.8%
Macronix International Co. 1,265,000 3,824,563
Ltd. (a)
Taiwan Semiconductor 7,413,400 47,734,590
Manufacturing Co. Ltd. (a)
United Microelectronics Corp. 14,079,000 47,627,929
99,187,082
SHARES VALUE (NOTE 1)
UNITED KINGDOM - 15.6%
3i Group PLC 351,800 $ 7,044,660
Allied Zurich PLC 2,318,050 22,956,953
Amvescap PLC 1,439,400 20,762,262
Autonomy Corp. PLC (a) 43,400 5,772,200
Bookham Technology PLC 38,700 2,012,400
sponsored ADR
BP Amoco PLC 13,100,164 111,351,477
British Aerospace PLC 2,952,211 18,069,864
British Telecommunications PLC 856,000 15,664,797
Cable & Wireless PLC 3,564,400 58,861,450
Carlton Communications PLC 2,934,803 35,288,335
Centrica PLC 1,450,100 5,136,225
Diageo PLC 892,900 7,206,089
Granada Group PLC 848,600 8,252,559
Hanson PLC 1,711,400 12,548,875
Hilton Group PLC 1,138,500 4,766,538
HSBC Holdings PLC (Reg.) 1,784,591 20,411,267
Jazztel PLC sponsored ADR 79,600 4,139,200
Lloyds TSB Group PLC 2,779,100 27,112,844
Marconi PLC 1,185,600 14,762,264
Misys PLC 1,139,800 12,979,079
Prudential Corp. PLC 846,300 12,963,209
Reed International PLC 1,007,800 6,959,169
Reuters Group PLC 1,426,600 25,464,403
Rio Tinto PLC (Reg.) 475,400 7,348,412
Royal Bank of Scotland Group 1,307,000 20,233,180
PLC
Scottish & Newcastle PLC 599,200 4,428,553
Scottish Media Group PLC 370,200 6,728,737
Shell Transport & Trading Co. 8,575,400 68,960,466
PLC (Reg.)
SmithKline Beecham PLC 3,005,844 41,330,347
Unilever PLC 3,399,363 21,139,801
Vodafone AirTouch PLC 45,628,803 214,455,623
WPP Group PLC 447,400 7,186,671
852,297,909
UNITED STATES OF AMERICA - 1.5%
Bristol-Myers Squibb Co. 144,400 7,571,975
Eli Lilly & Co. 128,200 9,911,463
Impsat Fiber Networks, Inc. 135,000 2,134,688
Infonet Services Corp. Class B 88,000 1,485,000
JDS Uniphase Corp. (a) 73,400 7,610,663
OMI Corp. (a) 854,000 2,989,000
Overseas Shipholding Group, 1,400,400 36,672,975
Inc.
Schering-Plough Corp. 293,200 11,819,625
80,195,389
TOTAL COMMON STOCKS 5,118,332,258
(Cost $3,715,537,583)
NONCONVERTIBLE PREFERRED
STOCKS - 0.1%
SHARES VALUE (NOTE 1)
GERMANY - 0.1%
SAP AG (Cost $3,328,520) 13,900 $ 8,215,947
INVESTMENT COMPANIES - 0.6%
EMERGING MARKETS - 0.3%
Asia Tigers Fund, Inc. 426,600 3,759,413
Central European Equity Fund, 142,900 2,143,500
Inc.
Templeton Dragon Fund, Inc. 1,003,600 7,966,075
13,868,988
KOREA (SOUTH) - 0.1%
Korea Fund, Inc. (The) (a) 511,800 6,365,513
MEXICO - 0.0%
Mexico Fund, Inc. (The) 153,600 2,323,200
MULTI-NATIONAL - 0.2%
European Warrant Fund, Inc. 358,800 5,583,825
Morgan Stanley Dean Witter 398,500 4,234,063
Asia-Pacific Fund, Inc.
9,817,888
TOTAL INVESTMENT COMPANIES 32,375,589
(Cost $38,049,957)
GOVERNMENT OBLIGATIONS - 0.2%
MOODY'S RATINGS (UNAUDITED) PRINCIPAL AMOUNT
UNITED STATES OF AMERICA - 0.2%
U.S. Treasury Bond stripped Aaa $ 47,775,000 9,341,446
principal 0% 11/15/27 (Cost
$8,325,898)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
CASH EQUIVALENTS - 9.0%
MATURITY AMOUNT
Investments in repurchase $ 5,769,743 5,767,000
agreements (U.S. Treasury
Obligations), in a joint
trading account at 5.71%,
dated 4/28/00 due 5/1/00
SHARES
Central Cash Collateral Fund, 210,584,835 210,584,835
5.94% (b)
Taxable Central Cash Fund, 274,442,314 274,442,314
5.77% (b)
TOTAL CASH EQUIVALENTS 490,794,149
(Cost $490,794,149)
TOTAL INVESTMENT PORTFOLIO - 5,659,059,389
103.4%
(Cost $4,256,036,107)
NET OTHER ASSETS - (3.4)% (186,728,210)
NET ASSETS - 100% $ 5,472,331,179
</TABLE>
LEGEND
(a) Non-income producing
(b) The rate quoted is the annualized seven-day yield of the fund at
period end.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $2,814,010,628 and $2,331,471,937, respectively.
The market value of futures contracts opened and closed during the
period amounted to $30,882,487 and $60,725,329, respectively.
The fund placed a portion of its portfolio transactions with brokerage
firms which are affiliates of Fidelity Management & Research Company.
The commissions paid to these affiliated firms were $2,047 for the
period.
The fund participated in the security lending program. At period end,
the value of securities loaned amounted to $205,945,337. The fund
received cash collateral of $210,584,835 which was invested in cash
equivalents and U.S. Treasury obligations valued at $3,157,426.
INCOME TAX INFORMATION
At April 30, 2000, the aggregate cost of investment securities for
income
tax purposes was $4,269,292,910. Net unrealized appreciation
aggregated $1,389,766,479, of which $1,651,827,675 related to
appreciated investment securities and $262,061,196 related to
depreciated investment securities.
OVERSEAS
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000 (UNAUDITED)
ASSETS
Investment in securities, at $ 5,659,059,389
value (including repurchase
agreements of $5,767,000)
(cost $4,256,036,107) - See
accompanying schedule
Cash 1,000
Foreign currency held at 38,591,069
value (cost $38,677,518)
Receivable for investments sold
Regular delivery 172,499,309
Delayed delivery 901,999
Receivable for fund shares 8,063,475
sold
Dividends receivable 15,398,836
Interest receivable 1,370,354
Other receivables 176,109
TOTAL ASSETS 5,896,061,540
LIABILITIES
Payable for investments $ 177,896,845
purchased
Payable for fund shares 29,115,923
redeemed
Accrued management fee 4,023,800
Other payables and accrued 2,108,958
expenses
Collateral on securities 210,584,835
loaned, at value
TOTAL LIABILITIES 423,730,361
NET ASSETS $ 5,472,331,179
Net Assets consist of:
Paid in capital $ 3,792,189,151
Distributions in excess of (16,675,210)
net investment income
Accumulated undistributed net 294,605,309
realized gain (loss) on
investments and foreign
currency transactions
Net unrealized appreciation 1,402,211,929
(depreciation) on
investments and assets and
liabilities in foreign
currencies
NET ASSETS, for 120,662,147 $ 5,472,331,179
shares outstanding
NET ASSET VALUE, offering $45.35
price and redemption price
per share ($5,472,331,179
(divided by) 120,662,147
shares)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30,
2000 (UNAUDITED)
INVESTMENT INCOME $ 27,970,644
Dividends
Interest 9,938,120
Security lending 419,826
38,328,590
Less foreign taxes withheld (3,177,332)
TOTAL INCOME 35,151,258
EXPENSES
Management fee Basic fee $ 19,284,245
Performance adjustment 3,988,926
Transfer agent fees 6,390,530
Accounting and security 721,880
lending fees
Non-interested trustees' 15,812
compensation
Custodian fees and expenses 1,187,664
Registration fees 517,117
Audit 34,791
Legal 72,466
Miscellaneous 5,824
Total expenses before 32,219,255
reductions
Expense reductions (544,085) 31,675,170
NET INVESTMENT INCOME 3,476,088
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities 304,896,542
Foreign currency transactions 628,873
Futures contracts 3,911,089 309,436,504
Change in net unrealized
appreciation (depreciation)
on:
Investment securities 289,635,922
Assets and liabilities in (965,783)
foreign currencies
Futures contracts (980,298) 287,689,841
NET GAIN (LOSS) 597,126,345
NET INCREASE (DECREASE) IN $ 600,602,433
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION $ 358,857
Expense reductions Directed
brokerage arrangements
Custodian credits 1,934
Transfer agent credits 183,294
$ 544,085
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
INCREASE (DECREASE) IN NET SIX MONTHS ENDED APRIL 30, YEAR ENDED OCTOBER 31, 1999
ASSETS 2000 (UNAUDITED)
Operations Net investment $ 3,476,088 $ 33,841,819
income
Net realized gain (loss) 309,436,504 434,643,138
Change in net unrealized 287,689,841 551,091,234
appreciation (depreciation)
NET INCREASE (DECREASE) IN 600,602,433 1,019,576,191
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (29,826,755) (20,938,368)
From net investment income
In excess of net investment (16,675,210) -
income
From net realized gain (279,011,026) (53,392,648)
TOTAL DISTRIBUTIONS (325,512,991) (74,331,016)
Share transactions Net 3,252,283,156 4,000,168,797
proceeds from sales of shares
Reinvestment of distributions 314,528,013 71,180,520
Cost of shares redeemed (2,851,613,567) (4,137,892,605)
NET INCREASE (DECREASE) IN 715,197,602 (66,543,288)
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) 990,287,044 878,701,887
IN NET ASSETS
NET ASSETS
Beginning of period 4,482,044,135 3,603,342,248
End of period (including $ 5,472,331,179 $ 4,482,044,135
under (over) distribution of
net investment income of
($16,675,210) and
$45,498,123, respectively)
OTHER INFORMATION
Shares
Sold 70,358,384 105,210,288
Issued in reinvestment of 7,233,855 2,054,834
distributions
Redeemed (61,543,940) (108,778,783)
Net increase (decrease) 16,048,299 (1,513,661)
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SIX MONTHS ENDED APRIL 30, 2000 YEARS ENDED OCTOBER 31,
SELECTED PER-SHARE DATA (UNAUDITED) 1999 1998 1997 1996
Net asset value,
beginning of $ 42.84 $ 33.95 $ 34.12 $ 31.08 $ 28.57
period
Income from Investment
Operations
Net investment income .03 D .32 D .29 D .43 D .48 E
Net realized and unrealized 5.56 9.28 1.22 4.61 2.72
gain (loss)
Total from investment 5.59 9.60 1.51 5.04 3.20
operations
Less Distributions
From net investment
income (.28) (.20) (.34) (.37) (.34)
In excess of net
investment (.16) - - - -
income
From net realized gain (2.64) (.51) (1.34) (1.63) (.35)
Total distributions (3.08) (.71) (1.68) (2.00) (.69)
Net asset value, end of
period $ 45.35 $ 42.84 $ 33.95 $ 34.12 $ 31.08
TOTAL RETURN B, C 13.36% 28.77% 4.60% 17.03% 11.41%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 5,472,331 $ 4,482,044 $ 3,603,342 $ 3,777,452 $ 3,114,625
(000 omitted)
Ratio of expenses to
average 1.23% A 1.27% 1.26% 1.23% 1.14%
net assets
Ratio of expenses to
average 1.21% A, F 1.23% F 1.24% F 1.20% F 1.12% F
net assets after expense
reductions
Ratio of net investment .13% A .85% .82% 1.28% 1.74%
income to average net assets
Portfolio turnover rate 96% A 85% 69% 68% 82%
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS
OF LESS THAN ONE YEAR ARE
NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
D NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES
OUTSTANDING DURING THE PERIOD.
E INVESTMENT INCOME PER SHARE
REFLECTS A SPECIAL DIVIDEND
WHICH AMOUNTED TO $.08 PER
SHARE.
F FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA 1995
Net asset value, beginning of $ 29.17
period
Income from Investment
Operations
Net investment income .31
Net realized and unrealized (.44)
gain (loss)
Total from investment (.13)
operations
Less Distributions
From net investment income (.02)
In excess of net investment -
income
From net realized gain (.45)
Total distributions (.47)
Net asset value, end of period $ 28.57
TOTAL RETURN B, C (.34)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 2,276,306
(000 omitted)
Ratio of expenses to average 1.05%
net assets
Ratio of expenses to average 1.05%
net assets after expense
reductions
Ratio of net investment 1.78%
income to average net assets
Portfolio turnover rate 49%
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS
OF LESS THAN ONE YEAR ARE
NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
D NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES
OUTSTANDING DURING THE PERIOD.
E INVESTMENT INCOME PER SHARE
REFLECTS A SPECIAL DIVIDEND
WHICH AMOUNTED TO $.08 PER
SHARE.
F FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
</TABLE>
WORLDWIDE
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value). If Fidelity had not reimbursed certain fund
expenses, the life of fund total returns would have been lower.
CUMULATIVE TOTAL RETURNS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PERIODS ENDED OCTOBER 31, 1994 PAST 6 MONTHS PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
FIDELITY WORLDWIDE 13.08% 22.35% 90.28% 182.84%
MSCI World 7.49% 12.29% 120.06% 205.29%
Global Funds Average 16.44% 23.98% 132.06% n/a
</TABLE>
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case six months, one year, five
years or since the fund started on May 30, 1990. For example, if you
had invested $1,000 in a fund that had a 5% return over the past year,
the value of your investment would be $1,050. You can compare the
fund's returns to the performance of the Morgan Stanley Capital
International World Index - a market capitalization-weighted index
that is designed to represent the performance of developed stock
markets throughout the world. As of April 30, 2000, the index included
over 1300 equity securities of companies domiciled in 22 countries. To
measure how the fund's performance stacked up against its peers, you
can compare it to the global funds average, which reflects the
performance of mutual funds with similar objectives tracked by Lipper
Inc. The past six months average represents a peer group of 110 mutual
funds. These benchmarks include reinvested dividends and capital
gains, if any, and exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1994 PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
FIDELITY WORLDWIDE 22.35% 13.73% 11.04%
MSCI World 12.29% 17.09% 11.90%
Global Funds Average 23.98% 17.69% n/a
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
Worldwide MS World Index (Net)
00318 MS004
1990/05/30 10000.00 10000.00
1990/05/31 10030.00 9976.64
1990/06/30 10290.00 9902.62
1990/07/31 10570.00 9989.88
1990/08/31 9380.00 9051.77
1990/09/30 8450.00 8094.23
1990/10/31 8950.00 8846.73
1990/11/30 8950.00 8698.31
1990/12/31 8898.23 8877.31
1991/01/31 9150.44 9198.82
1991/02/28 9654.88 10047.22
1991/03/31 9321.95 9748.02
1991/04/30 9412.75 9821.21
1991/05/31 9483.37 10040.73
1991/06/30 8807.43 9417.84
1991/07/31 9352.22 9859.59
1991/08/31 9493.46 9825.22
1991/09/30 9654.88 10079.83
1991/10/31 9695.23 10240.21
1991/11/30 9180.71 9790.88
1991/12/31 9599.06 10500.46
1992/01/31 9701.07 10302.97
1992/02/29 9996.89 10122.11
1992/03/31 9762.27 9642.19
1992/04/30 10190.71 9773.45
1992/05/31 10619.15 10159.10
1992/06/30 10251.92 9815.63
1992/07/31 10149.91 9837.48
1992/08/31 10007.10 10073.46
1992/09/30 10007.10 9977.88
1992/10/31 9823.48 9704.42
1992/11/30 9976.49 9874.98
1992/12/31 10194.86 9951.68
1993/01/31 10530.15 9981.98
1993/02/28 10781.62 10215.46
1993/03/31 11399.81 10804.71
1993/04/30 11682.71 11302.49
1993/05/31 12049.43 11559.98
1993/06/30 11923.70 11460.02
1993/07/31 12185.64 11693.15
1993/08/31 12950.52 12226.26
1993/09/30 12814.31 11997.44
1993/10/31 13369.63 12325.16
1993/11/30 13128.64 11625.06
1993/12/31 13920.64 12191.05
1994/01/31 14914.21 12992.28
1994/02/28 14689.86 12821.27
1994/03/31 14134.32 12265.65
1994/04/30 14625.76 12641.94
1994/05/31 14604.39 12671.61
1994/06/30 14305.25 12633.52
1994/07/31 14743.28 12870.80
1994/08/31 14989.00 13255.48
1994/09/30 14700.54 12904.26
1994/10/31 14914.21 13268.36
1994/11/30 14401.40 12689.97
1994/12/31 14332.82 12809.88
1995/01/31 14253.69 12614.52
1995/02/28 14423.25 12795.36
1995/03/31 14502.37 13408.98
1995/04/30 14864.08 13873.19
1995/05/31 15011.03 13988.72
1995/06/30 15214.49 13981.28
1995/07/31 15836.18 14677.67
1995/08/31 15440.56 14347.51
1995/09/30 15587.50 14762.30
1995/10/31 15056.24 14526.70
1995/11/30 15101.46 15027.93
1995/12/31 15363.09 15464.12
1996/01/31 15786.03 15740.67
1996/02/29 15991.79 15833.30
1996/03/31 16266.13 16093.49
1996/04/30 16746.23 16468.62
1996/05/31 17043.43 16479.56
1996/06/30 17032.00 16559.58
1996/07/31 16414.73 15971.03
1996/08/31 16849.10 16151.29
1996/09/30 17169.17 16780.32
1996/10/31 17352.06 16894.13
1996/11/30 18152.22 17837.53
1996/12/31 18239.31 17548.51
1997/01/31 18464.49 17756.70
1997/02/28 18974.10 17957.61
1997/03/31 18725.22 17599.05
1997/04/30 18689.67 18170.96
1997/05/31 19791.85 19289.22
1997/06/30 20834.77 20247.97
1997/07/31 21699.92 21177.22
1997/08/31 20538.49 19757.23
1997/09/30 22150.28 20827.25
1997/10/31 20467.38 19727.72
1997/11/30 20064.43 20073.46
1997/12/31 20441.89 20314.75
1998/01/31 20762.29 20877.50
1998/02/28 22223.34 22286.37
1998/03/31 23633.13 23224.02
1998/04/30 24504.63 23447.48
1998/05/31 24402.10 23150.13
1998/06/30 23799.74 23696.03
1998/07/31 23389.62 23654.49
1998/08/31 19109.00 20496.55
1998/09/30 18750.15 20855.53
1998/10/31 19980.50 22737.29
1998/11/30 20992.99 24085.90
1998/12/31 21910.20 25258.95
1999/01/31 22360.86 25808.38
1999/02/28 21512.56 25118.17
1999/03/31 22162.04 26160.33
1999/04/30 23116.39 27187.93
1999/05/31 22572.94 26190.79
1999/06/30 23739.36 27408.70
1999/07/31 23924.93 27322.78
1999/08/31 23977.95 27270.49
1999/09/30 23805.64 27002.36
1999/10/31 25011.83 28402.23
1999/11/30 26191.50 29197.58
1999/12/31 28658.48 31557.24
2000/01/31 27275.96 29746.45
2000/02/29 28716.09 29823.10
2000/03/31 29320.94 31880.73
2000/04/28 28284.05 30529.09
IMATRL PRASUN SHR__CHT 20000430 20000524 110632 R00000000000123
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Worldwide Fund on May 30, 1990, when the fund
started. As the chart shows, by April 30, 2000, the value of the
investment would have grown to $28,284 - a 182.84% increase on the
initial investment. For comparison, look at how the Morgan Stanley
Capital International World Index did over the same period. With
dividends and capital gains, if any, reinvested, the same $10,000
would have grown to $30,529 - a 205.29% increase.
UNDERSTANDING PERFORMANCE
Many markets around the globe offer the
potential for significant growth over time;
however, investing in foreign markets means
assuming greater risks than investing in the
United States. Factors like changes in a
country's financial markets, its local political
and economic climate, and the fluctuating
value of its currency create these risks. For
these reasons an international fund's
performance may be more volatile than a fund
that invests exclusively in the United States.
Past performance is no guarantee of future
results and you may have a gain or loss when
you sell your shares.
(checkmark)
WORLDWIDE
FUND TALK: THE MANAGERS' OVERVIEW
(PORTFOLIO MANAGER PHOTO_
An interview with Penny Dobkin (right), Lead Portfolio Manager of
Fidelity Worldwide Fund, and Doug Chase, manager of the fund's U.S.
equity subportfolio.
Q. HOW DID THE FUND PERFORM, PENNY?
P.D. It did reasonably well. For the six months that ended April 30,
2000, the fund had a total return of 13.08%, besting the 7.49% return
of the Morgan Stanley Capital International World Index but lagging
the 16.44% return of the global funds average monitored by Lipper Inc.
For the 12 months that ended April 30, 2000, the fund had a total
return of 22.35%, which exceeded the 12.29% return of the index but
fell a bit short of the 23.98% return posted by the average.
Q. WHY DID THE FUND FINISH AHEAD OF THE INDEX BUT BEHIND THE PEER
GROUP AVERAGE?
P.D. A slight overweighting in technology and telecommunications
stocks was partially responsible for the fund outperforming the index,
as was favorable stock selection in the U.S., Japan and Germany.
Another positive influence was an overweighted position in Japan,
especially early in the period. It's hard to say why the fund trailed
the peer group average, but one possible explanation is that many
funds had higher technology, media and telecommunications (TMT)
weightings than the fund did. Doug and I try to keep the fund fairly
well diversified, which means that during narrow market advances such
as we saw during the last two months of 1999, the fund tends to play
catch-up with its more concentrated peers.
Q. CAN YOU DESCRIBE THE MARKET ENVIRONMENT DURING THE PERIOD?
P.D. November and December witnessed a powerful but narrow worldwide
rally led by TMT stocks. Upward pressure on interest rates was a
factor in limiting gains in other sectors and resulted in more
concentrated buying in the sectors with the greatest potential for
dynamic earnings growth. A more challenging market environment
developed during the first four months of 2000. TMT stocks peaked in
March amid continued upward pressure on interest rates. April saw some
particularly nasty slides in share prices, with technology stocks
abroad taking their cues from the NASDAQ Composite Index in the U.S.
The meltdown gave way to increased skepticism about "concept" stocks -
that is, those whose main asset is an intriguing business strategy -
and a greater appreciation for solid earnings prospects. As the period
ended, many popular market averages were above their recent lows but
struggling to find their footing.
Q. HOW DID YOU MANAGE THE NON-U.S. PORTION OF THE FUND DURING THE
PERIOD?
P.D. After adding to the fund's weighting of TMT stocks early in the
period, I reduced those areas during the second half of the period and
increased holdings in sectors that I thought would benefit from either
stronger economic growth or investors' renewed zeal for dependable
earnings growth, including energy and energy services, paper and
forest products and health care. Many of these purchases were European
stocks, although at the end of the period the fund remained slightly
overweighted in Japanese stocks and marginally underweighted in
European stocks relative to the index.
Q. THE FINANCE COMPONENT OF THE FUND FELL FROM 19.1% OF NET ASSETS SIX
MONTHS AGO TO 9.2% AT THE END OF THE PERIOD. WHY WAS THAT?
P.D. There were several factors at work. For one thing, Doug reduced
the finance weighting of the U.S. part of the fund in response to
climbing interest rates and the prospect of further rate hikes.
Second, I took profits on some positions in Singaporean, Mexican and
Australian banks early in the period. Finally, falling stock prices of
European banks brought down the fund's finance weighting. Nonetheless,
I felt that the reaction was excessive and increased the fund's
positions in some European banks during the period.
Q. TURNING TO YOU, DOUG, WHAT TRANSPIRED WITH THE U.S. PORTION OF THE
FUND?
D.C. After overweighting technology for most of the period, I sold off
to a more neutral weighting in March and April. Another thing I did
was to shrink the number of U.S. holdings from approximately 225 at
the beginning of the period to around 70 at the end, reflecting my
confidence in what I considered the best opportunities. This decision
also was guided by relatively narrow market conditions. To use an old
football analogy, you have to take what the defense - or the market -
is giving you. Like Penny, I saw investors returning to a greater
appreciation for earnings and other fundamental considerations, so I
tightened the fund's focus on companies with solid earnings prospects.
In addition, the hot IPO (initial public offering) market created more
competition for everyone, so I reasoned that earnings would be
important to investors from that standpoint, too.
Q. PENNY, WHAT STOCKS DID WELL FOR THE FUND?
P.D. U.S. Foodservice, one of the fund's strongest performers, was
boosted by the announced acquisition of the company in March by Dutch
supermarket operator Ahold NV. Also contributing positively to
performance was Sweden's Ericsson, which benefited from robust demand
for its telephone system infrastructure business. Another holding that
did well, Avon Products, reported upwardly revised earnings and sales
forecasts in April. Finally, Japanese holding Furukawa Electric
strengthened on the basis of its holdings of U.S. company JDS
Uniphase, as well as increasing regard for the company's expertise in
the field of WDM - wave division multiplexing. WDM involves using
lasers and mirrors to split light into its component parts and
increase the capacity of fiber-optic pathways.
Q. WHAT STOCKS DETRACTED FROM THE FUND'S PERFORMANCE?
P.D. One of the worst performers was U.S. firm Healtheon/WebMD, an
online medical processing firm and the operator of a consumer-oriented
Web portal. The stock was one of many that suffered in the recent
correction because the company was not sufficiently far along in its
development to have a significant earnings stream. There also were
fears of greater competition as a result of a recent agreement by six
large HMOs to form an online exchange for processing medical claims.
Navisite, a leading U.S. provider in the high-growth Web hosting and
application services areas that was still in the process of ramping up
its sales, also was hit with selling because of the market's sudden
intolerance for lack of earnings. We sold both stocks. U.K. stock
Vodafone AirTouch backpedaled because of concerns about the escalating
costs of third-generation cellular licenses. However, this company has
a global presence and is poised to benefit from growth in the U.S.
cellular communications market. Furthermore, its stock had a
relatively modest valuation at the end of the period given Vodafone's
cash flow growth prospects.
Q. WHAT'S YOUR OUTLOOK, PENNY?
P.D. The fund is still marginally overweighted in Japan because I
believe that the restructuring trend will continue there and, over
time, will benefit Japanese stocks. There are many world class
companies in Japan, particularly in such new economy industries as
electronic components and telecommunications equipment. In Europe,
gross domestic product growth is accelerating, and export-related
businesses should derive some help from the weak euro, which began the
period trading at approximately $1.05 and finished around the $0.91
mark. As for the U.S., we think that economic growth is unsustainable
at recent rates and should slow in the next few quarters. The big
question is whether the Federal Reserve Board can engineer a soft
landing for the economy - in other words, whether the Fed can cool
growth enough to calm inflation fears while avoiding a recession. If
the Fed can produce a soft landing, we may well see what so many
investors have longed for recently - a broad-based advance in share
prices.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGERS ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER AND DO NOT NECESSARILY REPRESENT THE VIEWS OF FIDELITY OR
ANY OTHER PERSON IN THE FIDELITY ORGANIZATION. ANY SUCH VIEWS ARE
SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS
AND FIDELITY DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE
VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS FOR A FIDELITY FUND ARE BASED ON NUMEROUS
FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON
BEHALF OF ANY FIDELITY FUND.
PENNY DOBKIN ON THE RECENT CORRECTION
IN NEW ECONOMY STOCKS:
"Whenever markets experience a sharp correction such as
we've seen recently, many investors are bound to question
whether it's just a `pause that refreshes' or a fundamental
shift in investor psychology. Are we, in other words, entering a
period where new economy stocks will remain out of favor and
old economy sectors such as energy, health care - excluding
biotechnology - chemicals, paper, steel, industrial
equipment and so on will dominate?
"My interpretation is the current market environment will
not last. Just as we saw one kind of extreme back in
December, with investors asking few questions before jumping
into technology investments of all kinds with both feet, I
believe that we are now seeing another kind of extreme. The
extreme narrowness of the recent advance in worldwide
markets and unabating pressure on the interest-rate front
- especially in the U.S. - have combined to create some
compelling short-term opportunities in many old economy
stocks, including the cyclical and defensive sectors.
However, the Internet is not going to go away. Long-term
investing always has been about earnings growth, and the
most dynamic earnings growth should continue to be found in
the new economy sectors of technology, media and
telecommunications.
"A lot of the current investor defensiveness is due, I believe,
to rising interest rates. At some point soon, the delayed
effects of higher interest rates should begin to kick in, resulting
in slower U.S. growth, which also will relieve pressure on rates in
Europe. Another factor that should contribute to more stable
rates is the upcoming U.S. presidential election. The Federal
Reserve Board will likely keep rates steady as the election
nears to avoid making interest-rate policy a target of campaign
rhetoric. Once rates settle down, investors should be more
sanguine about stocks generally.
"This is not to say that we will return to the way things were at
the end of 1999. I think many investors learned a hard lesson
about the connection between earnings and stock prices
during the first few months of 2000. Going forward, I see
investors being much more selective about the stocks they
purchase, new economy or old economy. We may have entered
a period where basic business prospects and valuations will
matter more than they have during the past year or two. If so,
it bodes well for Fidelity Worldwide Fund, which is built on
meticulous analysis of earnings prospects and other
fundamental yardsticks of stock valuation."
FUND FACTS
GOAL: to provide long-term growth of capital
by investing mainly in common stocks from
around the world
FUND NUMBER: 318
TRADING SYMBOL: FWWFX
START DATE: May 30, 1990
SIZE: as of April 30, 2000, more than $1.1
billion
MANAGERS: Penelope Dobkin, since inception;
manager, Fidelity Europe Fund, 1986-1990;
Fidelity United Kingdom Fund, 1987-1989;
Fidelity Select Financial Services Portfolio,
1983-1986; joined Fidelity in 1980; Doug
Chase, since 1999; manager, Fidelity Export and
Multinational Fund, since February 2000; Fidelity
Advisor Consumer Industries Fund, 1997-1999;
various Fidelity Select Portfolios, 1994-1999;
joined Fidelity in 1992
(checkmark)
WORLDWIDE
INVESTMENT CHANGES
AS OF APRIL 30, 2000
France 6.1%
Row: 1, Col: 1, Value: 6.1
Row: 1, Col: 2, Value: 3.6
Row: 1, Col: 3, Value: 1.7
Row: 1, Col: 4, Value: 12.2
Row: 1, Col: 5, Value: 2.7
Row: 1, Col: 6, Value: 9.800000000000001
Row: 1, Col: 7, Value: 2.4
Row: 1, Col: 8, Value: 2.1
Row: 1, Col: 9, Value: 8.300000000000001
Row: 1, Col: 10, Value: 51.1
Germany 3.6%
Italy 1.7%
Japan 12.2%
United States 51.1%
Netherlands 2.7%
Other 9.8%
Sweden 2.4%
Switzerland 2.1%
United Kingdom 8.3%
GEOGRAPHIC DIVERSIFICATION (%
OF FUND'S NET ASSETS)
AS OF OCTOBER 31, 1999
Canada 1.6%
Row: 1, Col: 1, Value: 1.6
Row: 1, Col: 2, Value: 5.4
Row: 1, Col: 3, Value: 3.3
Row: 1, Col: 4, Value: 15.1
Row: 1, Col: 5, Value: 3.5
Row: 1, Col: 6, Value: 8.699999999999999
Row: 1, Col: 7, Value: 1.6
Row: 1, Col: 8, Value: 2.7
Row: 1, Col: 9, Value: 9.4
Row: 1, Col: 10, Value: 48.7
France 5.4%
Germany 3.3%
Japan 15.1%
United States 48.7%
Netherlands 3.5%
Other 8.7%
Sweden 1.6%
Switzerland 2.7%
United Kingdom 9.4%
<TABLE>
<CAPTION>
<S> <C> <C>
ASSET ALLOCATION
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Stocks and Investment Companies 88.1 95.9
Short-Term Investments and 11.9 4.1
Net Other Assets
TOP TEN STOCKS BY ISSUER AS
OF APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Procter & Gamble Co. (United 3.1 0.3
States of America, Household
Products)
Vodafone AirTouch PLC 2.9 1.6
(United Kingdom, Cellular)
Avon Products, Inc. (United 2.5 0.9
States of America, Household
Products)
AT&T Corp. (United States of 2.0 0.5
America, Telephone Services)
Intel Corp. (United States of 1.9 0.6
America, Electronics)
Telefonaktiebolaget LM 1.7 0.8
Ericsson (Sweden,
Communications Equipment)
TotalFinaElf SA (France, Oil 1.5 1.2
& Gas)
Pinnacle Systems (United 1.5 0.0
States of America,
Electrical Equipment)
Sonic Automotive, Inc. 1.4 0.0
(United States of America,
Autos, Tires, & Accessories)
Texas Instruments, Inc. 1.3 0.3
(United States of America,
Electronics)
19.8 6.2
TOP TEN MARKET SECTORS AS OF
APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Technology 16.3 14.0
Utilities 12.9 12.6
Finance 9.2 19.1
Nondurables 8.3 6.5
Health 8.2 9.3
Energy 8.0 5.3
Industrial Machinery & 6.3 6.3
Equipment
Durables 4.9 3.3
Media & Leisure 4.2 4.6
Basic Industries 3.3 3.7
</TABLE>
WORLDWIDE
INVESTMENTS APRIL 30, 2000 (UNAUDITED)
Showing Percentage of Net Assets
COMMON STOCKS - 88.0%
SHARES VALUE (NOTE 1)
AUSTRALIA - 0.7%
Australia & New Zealand 350,000 $ 2,419,889
Banking Group Ltd.
Cable & Wireless Optus Ltd. 892,300 2,881,454
(a)
Goodman Fielder Ltd. 680,700 504,818
Publishing & Broadcasting 301,100 2,338,504
Ltd.
Woodside Petroleum Ltd. (a) 33,800 209,020
8,353,685
BELGIUM - 0.2%
Electrabel SA 3,500 848,241
Fortis B 50,000 1,265,548
2,113,789
BERMUDA - 0.0%
Flag Telecom Holdings Ltd. 10,000 195,000
BRAZIL - 0.2%
Brahma Cervejaria (Compagnie) 114,500 1,774,750
sponsored ADR
CANADA - 0.7%
Anderson Exploration Ltd. (a) 40,200 643,395
BCE, Inc. 8,000 926,526
Canadian Hunter Exploration 22,300 422,417
Ltd. (a)(c)
Canadian National Railway Co. 101,600 2,837,088
GT Group Telecom, Inc. Class 7,000 90,762
B (non-vtg.)
Rio Alto Exploration Ltd. (a) 24,200 424,905
Sun Life Financial Services 175,000 2,085,866
Canada, Inc.
7,430,959
DENMARK - 0.3%
Bang & Olufsen Holding AS 54,200 1,799,983
Novo-Nordisk AS (B Shares) 11,500 1,544,510
3,344,493
FINLAND - 1.5%
Metsa-Serla Oyj Class B Free 191,900 1,631,885
Shares
Metso Oyj 30,800 407,054
Nokia AB sponsored ADR 144,000 8,190,000
Pohjola Group Insurance Corp. 16,600 827,615
Class B
Sampo Insurance Co. Ltd. 116,800 4,428,626
Satama Interactive Oyj (a) 1,300 15,273
UPM-Kymmene Corp. 65,500 1,701,449
17,201,902
FRANCE - 6.1%
Access Commerce SA 7,100 420,634
Alcatel SA sponsored ADR 51,400 2,335,488
Aventis SA:
(France) 70,000 3,937,500
(Germany) 30,757 1,665,188
AXA SA de CV 40,500 6,020,629
Banque Nationale de Paris 47,685 3,863,816
(BNP)
Bouygues SA 962 615,524
SHARES VALUE (NOTE 1)
Canal Plus SA 2,500 $ 483,069
Christian Dior SA 3,100 738,867
Compagnie de St. Gobain 9,900 1,354,406
France Telecom SA 47,000 7,291,053
Havas Advertising SA 4,300 2,151,660
ILOG SA sponsored ADR (a) 14,600 525,600
Lafarge SA 9,600 797,118
Renault SA 12,900 587,885
Rhodia SA 149,800 2,785,318
Sanofi-Synthelabo SA 74,280 2,779,188
Schneider SA 17,900 1,174,677
Societe Generale Class A 7,200 1,494,924
Television Francaise 1 SA 5,200 3,568,874
TotalFinaElf SA Class B 110,037 16,643,096
Transiciel SA 13,200 1,766,171
Usinor Sacilor 27,400 360,870
Vivendi SA 46,000 4,561,625
67,923,180
GERMANY - 3.6%
BASF AG 59,500 2,607,982
Bayer AG 46,300 1,934,032
Bayerische Hypo-und 24,600 1,502,252
Vereinsbank AG
DaimlerChrysler AG (Reg.) 12,500 719,531
Deutsche Bank AG 7,000 471,493
Dresdner Bank AG 56,100 2,316,807
Fresenius Medical Care AG 36,200 2,730,294
Infineon Technologies AG 2,500 173,176
Jobs & Adverts AG (a) 733 15,366
Kali Und Salz Beteiligungs AG 106,000 1,419,255
MAN AG 61,400 2,034,256
Munich Reinsurance AG (Reg.) 23,600 6,937,046
Primacom AG (a) 54,000 4,158,946
Salzgitter AG 128,900 1,022,127
SAP AG sponsored ADR 47,700 2,343,263
Schering AG 16,700 2,366,899
Siemens AG 24,800 3,684,445
Software AG (a) 10,500 1,215,419
United Internet AG (a) 6,600 1,702,406
Veba AG 28,500 1,433,893
40,788,888
HONG KONG - 0.9%
China Telecom Ltd. (a) 654,000 4,796,681
Citic Pacific Ltd. 276,000 1,264,999
Great Eagle Holdings Ltd. 1,062,000 1,813,380
Hutchison Whampoa Ltd. 40,000 582,866
Sun Hung Kai Properties Ltd. 198,000 1,569,694
10,027,620
IRELAND - 0.3%
Bank of Ireland, Inc. 367,400 2,478,014
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
IRELAND - CONTINUED
Independent Newspapers PLC 109,900 $ 882,672
(United Kingdom)
Riverdeep Group PLC sponsored 5,600 128,100
ADR
3,488,786
ITALY - 1.7%
Banca Nazionale del Lavoro 667,200 2,172,203
(BNL)
Banca Popolare di Milano 142,600 855,611
Luxottica Group Spa sponsored 59,900 1,430,113
ADR
San Paolo Imi Spa 49,100 690,974
Telecom Italia Mobile Spa 244,100 2,337,204
Telecom Italia Spa 703,500 10,051,255
Unicredito Italiano Spa 256,800 1,054,910
18,592,270
JAPAN - 12.2%
Advan Co. Ltd. 25,900 373,627
Advan Co. Ltd. New 25,900 373,627
Amada Co. Ltd. 205,000 1,865,360
Asatsu-DK, Inc. 17,000 701,128
Bank of Tokyo-Mitsubishi Ltd. 68,000 876,567
Canon Sales Co., Inc. 103,000 1,647,771
Chukyo Coca-Cola Bottling Co. 44,000 425,190
Ltd.
Crayfish Co. Ltd. sponsored 2,000 29,750
ADR
CSK Corp. 5,900 226,419
Daiwa Securities Group, Inc. 89,000 1,357,962
DDI Corp. 271 3,107,453
Fuji Bank Ltd. 195,000 1,622,896
Fuji Coca-Cola Bottling Co. 19,000 180,091
Ltd.
Fuji Heavy Industries Ltd. 202,000 1,541,058
Fuji Television Network, Inc. 35 582,578
Fujikura Ltd. 403,000 1,799,972
Fujitsu Ltd. 146,000 4,131,311
Furukawa Electric Co. Ltd. 841,000 11,657,657
Hikari Tsushin, Inc. 3,300 476,050
Hitachi Chemical Co. Ltd. 47,000 1,199,556
Hokkaido Coca-Cola Bottling 57,000 653,597
Co. Ltd.
Honda Motor Co. Ltd. (a) 29,000 1,283,250
Industrial Bank of Japan Ltd. 76,000 625,485
(IBJ) (a)
Ito-Yokado Co. Ltd. 40,000 2,918,439
Kansai Electric Power Co., 135,300 2,126,965
Inc.
KDD Corp. 27,900 3,230,146
Koa Denko Co. Ltd. 58,000 1,684,113
Kokusai Securities Co. Ltd. 35,000 498,428
Kyocera Corp. 70,000 11,624,375
Meitec Corp. 12,800 401,258
Mikasa Coca Cola Bottling Co. 74,000 602,182
Minolta Co. Ltd. 412,000 1,447,753
Mitsubishi Electric Corp. 520,000 4,438,321
Mitsumi Electric Co. Ltd. 109,000 4,495,469
NEC Corp. 194,000 5,274,274
Nichicon Corp. 115,000 3,083,965
SHARES VALUE (NOTE 1)
Nikko Securities Co. Ltd. 195,000 $ 2,299,103
Nippon Computer Systems Corp. 150,000 2,899,020
Nippon Telegraph & Telephone 592 7,335,676
Corp.
Nomura Securities Co. Ltd. 70,000 1,760,681
NTT DoCoMo, Inc. 19 634,270
Oki Electric Industry Co. 272,000 1,911,596
Ltd. (a)
Omron Corp. 160,000 4,349,917
ORIX Corp. 17,400 2,481,117
Pioneer Corp. 39,000 1,063,899
Ricoh Co. Ltd. 121,000 2,551,137
Sakura Bank Ltd. 200,000 1,401,886
Sankyo Co. Ltd. 40,000 880,340
Sanwa Bank Ltd. 109,000 1,052,303
Shikoku Coca-Cola Bottling 50,000 559,460
Co. Ltd.
Shinko Securities Co. Ltd. 397,000 1,736,462
Softbank Corp. 2,400 590,346
Softbank Corp. New 4,800 1,180,692
Sony Corp. 20,500 2,312,656
Sony Corp. New 20,500 2,312,656
Sumitomo Electric Industries 87,000 1,157,694
Ltd.
Takeda Chemical Industries 70,000 4,602,367
Ltd.
Tokyo Broadcasting System, 40,000 1,738,487
Inc.
Tokyo Seimitsu Co. Ltd. 3,000 313,483
Toyota Motor Corp. 73,000 3,647,719
Trans Cosmos, Inc. 800 159,053
Tsubaki Nakashima Co. Ltd. 57,000 712,632
Yakult Honsha Co. Ltd. 58,000 595,339
Yamada Denki Co. Ltd. 9,000 749,029
Yamanouchi Pharmaceutical Co. 60,000 3,168,115
Ltd.
Yokogawa Electric Corp. 158,000 1,205,382
135,926,560
KOREA (SOUTH) - 0.8%
Samsung Electro-Mechanics Co. 52,200 3,551,341
Samsung Electronics Co. Ltd. 17,120 4,628,070
SK Telecom Co. Ltd. ADR 14,700 471,319
8,650,730
LUXEMBOURG - 0.6%
Audiofina 49,400 6,100,973
Carrier1 International SA ADR 7,300 116,800
6,217,773
MARSHALL ISLANDS - 0.1%
Teekay Shipping Corp. 20,300 666,094
MEXICO - 0.7%
Grupo Televisa SA de CV 23,400 1,484,438
sponsored ADR (a)
Telefonos de Mexico SA de CV 40,000 2,352,500
Series L sponsored ADR
Tubos de Acero de Mexico SA 68,100 1,017,244
sponsored ADR
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
MEXICO - CONTINUED
TV Azteca SA de CV sponsored 55,200 $ 607,200
ADR
Wal-Mart de Mexico SA de CV 877,000 1,875,786
Series C (a)
7,337,168
NETHERLANDS - 2.7%
ABN AMRO Holding NV 57,000 1,176,728
Akzo Nobel NV 21,300 874,207
Fortis Amev NV 39,000 983,218
IHC Caland NV 20,100 815,246
ING Groep NV (Certificaten 67,900 3,714,485
Van Aandelen)
Koninklijke Ahold NV 179,200 4,189,462
Koninklijke KPN NV 37,300 3,768,577
Koninklijke Philips 176,400 7,889,464
Electronics NV
NBM-Amstelland NV 64,200 804,582
Toolex International NV (a) 2,680 46,411
United Pan-Europe 63,000 2,298,577
Communications NV (a)
Vendex KBB NV 203,800 3,148,522
Wegener NV 14,200 219,377
29,928,856
NEW ZEALAND - 0.1%
Fletcher Challenge Ltd. - 257,400 593,597
Energy Division
Telecom Corp. of New Zealand 160,000 675,816
Ltd.
1,269,413
NORWAY - 0.7%
Bergesen dy ASA (A Shares) 74,800 1,259,055
Christiania Bank Og 325,000 1,504,840
Kreditkasse
DNB Holding ASA 746,900 2,623,003
Opticom ASA (a) 3,100 327,642
Petroleum Geo-Services ASA (a) 103,300 1,617,465
Tandberg ASA (a) 51,700 792,169
8,124,174
PANAMA - 0.2%
Carnival Corp. 101,300 2,519,838
PHILIPPINES - 0.0%
Manila Electric Co. Class B 289,000 518,009
PORTUGAL - 0.1%
Banco Pinto & Sotto Mayor SA 75,000 1,578,404
SINGAPORE - 0.2%
Flextronics International 17,400 1,222,350
Ltd. (a)
Oversea-Chinese Banking Corp. 98,000 671,902
Ltd.
Overseas Union Bank Ltd. 206,800 945,233
2,839,485
SPAIN - 0.9%
Banco Santander Central 187,400 1,959,142
Hispano SA
SHARES VALUE (NOTE 1)
Iberdrola SA 33,100 $ 425,685
Telefonica SA (a) 352,084 7,855,802
10,240,629
SWEDEN - 2.4%
ABB Ltd. (Sweden) 8,966 1,004,166
Elanders AB (B Shares) 11,900 381,171
Electrolux AB 120,200 2,039,501
Investor AB (B Shares) 156,400 2,207,060
Modern Times Group AB (MTG) 35,000 1,728,676
(B Shares) (a)
Tele1 Europe Holding AB (a) 23,900 377,419
Telefonaktiebolaget LM
Ericsson:
(B Shares) 30,000 2,653,125
sponsored ADR 185,000 16,360,938
26,752,056
SWITZERLAND - 2.1%
Credit Suisse Group (Reg.) 34,500 6,251,745
Edipresse SA (Bearer) 2,210 1,073,502
Gretag Imaging Holding AG 100 20,157
(Reg. D)
Nestle SA (Reg.) 1,827 3,230,995
Novartis AG (Reg.) 2,000 2,802,792
PubliGroupe SA 352 272,344
Roche Holding AG 452 4,735,614
participation certificates
Tecan AG 783 676,869
UBS AG 14,500 3,563,845
Valora Holding AG 5,000 1,303,083
23,930,946
TAIWAN - 0.5%
Polaris Securities Co. Ltd. 352,000 423,389
Taiwan Semiconductor 302,000 1,944,566
Manufacturing Co. Ltd. (a)
United Microelectronics Corp. 918,000 3,105,507
5,473,462
UNITED KINGDOM - 8.3%
Allied Zurich PLC 417,700 4,136,718
Amvescap PLC 100,000 1,442,425
Barclays PLC 71,800 1,831,508
BBA Group PLC 110,000 674,996
BOC Group PLC 26,300 431,859
Bodycote International PLC 143,300 550,976
Booker PLC (a) 525,600 1,036,980
BP Amoco PLC sponsored ADR 147,032 7,498,632
British Aerospace PLC 379,200 2,321,004
Cable & Wireless PLC ADR 100,000 4,937,500
Caradon PLC 434,700 1,080,490
Carlton Communications PLC 254,500 3,060,131
Cordiant PLC 305,700 1,443,711
George Wimpey PLC 296,000 530,835
Glaxo Wellcome PLC 130,000 4,082,813
Jazztel PLC sponsored ADR 12,900 670,800
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
UNITED KINGDOM - CONTINUED
Millennium & Copthorne Hotels 166,300 $ 1,053,281
PLC
Misys PLC 28,000 318,840
Morgan Crucible Co. PLC 192,700 764,863
Persimmon PLC 252,300 784,680
Reuters Group PLC sponsored 9,500 990,969
ADR
Royal & Sun Alliance 181,727 1,012,092
Insurance Group PLC
Royal Bank of Scotland Group 286,896 4,441,330
PLC
Scottish Media Group PLC 41,000 745,214
Severn Trent PLC 154,000 1,558,642
Shell Transport & Trading Co. 663,400 5,334,838
PLC (Reg.)
Smith & Nephew PLC 606,100 1,741,916
SmithKline Beecham PLC 36,000 2,475,000
sponsored ADR
SSL International PLC 52,100 528,116
St. James's Place Capital PLC 250,000 866,076
Taylor Nelson Sofres PLC 143,300 551,644
Tempus Group PLC 51,000 386,635
Trinity Mirror PLC 71,800 556,033
Vodafone AirTouch PLC 1,939,935 9,117,705
Vodafone AirTouch PLC 503,000 23,641,000
sponsored ADR
92,600,252
UNITED STATES OF AMERICA -
39.2%
Abbott Laboratories 62,900 2,417,719
AMBAC Financial Group, Inc. 104,700 5,025,600
AT&T Corp. 392,100 18,306,169
AT&T Corp. - Liberty Media 95,700 4,779,019
Group Class A (a)
AutoNation, Inc. (a) 1,462,200 13,342,575
Avon Products, Inc. 678,169 28,144,014
Baker Hughes, Inc. 191,900 6,104,819
Ball Corp. 129,400 4,076,100
Baxter International, Inc. 31,300 2,038,413
BellSouth Corp. 79,955 3,892,809
Biomet, Inc. 23,500 838,656
Bristol-Myers Squibb Co. 190,272 9,977,388
Calpine Corp. (a) 69,200 6,331,800
Cardinal Health, Inc. 204,200 11,243,763
Caterpillar, Inc. 117,706 4,642,030
Church & Dwight Co., Inc. 149,500 2,672,313
Cisco Systems, Inc. (a) 108,800 7,542,900
Compaq Computer Corp. 319,300 9,339,525
Computer Sciences Corp. (a) 57,800 4,714,313
Conoco, Inc. Class B 392,700 9,768,413
Dial Corp. 1,007,085 14,036,247
Ditech Communications Corp. 50,482 4,328,832
Dynegy, Inc. Class A 72,550 4,747,491
Eli Lilly & Co. 140,672 10,875,704
SHARES VALUE (NOTE 1)
Extended Systems, Inc. (a) 13,700 $ 544,575
General Dynamics Corp. 68,000 3,978,000
Grant Prideco, Inc. (a) 34,400 662,200
H&R Block, Inc. 56,095 2,345,472
Halliburton Co. 189,419 8,369,952
Infinity Broadcasting Corp. 43,900 1,489,856
Class A (a)
Insurance Auto Auctions, Inc. 105,400 1,752,275
(a)
Intel Corp. 164,700 20,886,019
International Business 45,000 5,023,125
Machines Corp.
Keebler Foods Co. 69,662 2,189,999
Kinder Morgan, Inc. 83,300 2,525,031
MapInfo Corp. (a) 69,650 2,063,381
MetLife, Inc. 95,600 1,583,375
Micron Technology, Inc. (a) 76,500 10,652,625
Mohawk Industries, Inc. (a) 106,800 2,649,975
MRV Communications, Inc. (a) 86,100 5,935,519
Nabors Industries, Inc. (a) 71,800 2,831,613
NCO Group, Inc. (a) 234,711 8,068,191
Noble Drilling Corp. (a) 194,700 7,775,831
Overseas Shipholding Group, 171,900 4,501,631
Inc.
Parker-Hannifin Corp. 80,900 3,761,850
Phelps Dodge Corp. 154,100 7,127,125
Pinnacle Systems (a) 684,592 16,430,208
Procter & Gamble Co. 576,100 34,349,952
Schering-Plough Corp. 173,400 6,990,188
SCM Microsystems, Inc. (a) 3,900 308,588
SeaChange International, Inc. 53,800 1,614,000
(a)
Shaw Industries, Inc. 153,400 2,425,638
Siebel Systems, Inc. (a) 43,200 5,308,200
Sonic Automotive, Inc. (a) 1,380,700 15,360,288
Steris Corp. (a) 86,600 779,400
Sunoco, Inc. 96,300 2,919,094
Superior Energy Services, 264,300 2,444,775
Inc. (a)
Texas Instruments, Inc. 91,100 14,837,913
Time Warner, Inc. 52,000 4,676,750
Tosco Corp. 44,800 1,436,400
Travelocity.com, Inc. (a) 29,500 519,938
UnumProvident Corp. 86,300 1,467,100
Vastar Resources, Inc. 129,900 10,473,188
Viad Corp. 126,789 3,217,271
Vitesse Semiconductor Corp. 34,200 2,327,738
(a)
Warner-Lambert Co. 111,737 12,717,067
Weatherford International, 34,400 1,397,500
Inc.
437,905,428
TOTAL COMMON STOCKS 983,714,599
(Cost $859,756,044)
INVESTMENT COMPANIES - 0.1%
KOREA (SOUTH) - 0.1%
Korea Fund, Inc. (The) (a) 51,600 641,775
(Cost $864,668)
CASH EQUIVALENTS - 10.8%
SHARES VALUE (NOTE 1)
Central Cash Collateral Fund, 33,625,209 $ 33,625,209
5.94% (b)
Taxable Central Cash Fund, 87,694,642 87,694,642
5.77% (b)
TOTAL CASH EQUIVALENTS 121,319,851
(Cost $121,319,851)
TOTAL INVESTMENT PORTFOLIO - 1,105,676,225
98.9%
(Cost $981,940,563)
NET OTHER ASSETS - 1.1% 11,888,915
NET ASSETS - 100% $ 1,117,565,140
LEGEND
(a) Non-income producing
(b) The rate quoted is the annualized seven-day yield of the fund at
period end.
(c) Security exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may be resold in
transactions exempt from registration, normally to qualified
institutional buyers. At the period end, the value of these securities
amounted to $422,417 or 0.0% of net assets.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $1,450,891,433 and $1,534,853,820, respectively.
The fund placed a portion of its portfolio transactions with brokerage
firms which are affiliates of Fidelity Management & Research Company.
The commissions paid to these affiliated firms were $48,453 for the
period.
The fund participated in the security lending program. At period end,
the value of securities loaned amounted to $34,442,183. The fund
received cash collateral of $33,625,209 which was invested in cash
equivalents and U.S. Treasury Obligations valued at $2,153,092.
INCOME TAX INFORMATION
At April 30, 2000, the aggregate cost of investment securities for
income tax purposes was $986,582,831. Net unrealized appreciation
aggregated $119,093,394, of which $169,358,309 related to appreciated
investment securities and $50,264,915 related to depreciated
investment securities.
WORLDWIDE
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000 (UNAUDITED)
ASSETS
Investment in securities, at $ 1,105,676,225
value (cost $981,940,563) -
See accompanying schedule
Foreign currency held at 14,796,108
value (cost $14,769,926)
Receivable for investments 54,599,110
sold
Receivable for fund shares 1,950,827
sold
Dividends receivable 2,374,203
Interest receivable 327,450
Other receivables 79,468
TOTAL ASSETS 1,179,803,391
LIABILITIES
Payable for investments $ 23,655,780
purchased
Payable for fund shares 4,026,786
redeemed
Accrued management fee 668,196
Other payables and accrued 262,280
expenses
Collateral on securities 33,625,209
loaned, at value
TOTAL LIABILITIES 62,238,251
NET ASSETS $ 1,117,565,140
Net Assets consist of:
Paid in capital $ 865,575,768
Distributions in excess of (564,921)
net investment income
Accumulated undistributed net 128,916,521
realized gain (loss) on
investments and foreign
currency transactions
Net unrealized appreciation 123,637,772
(depreciation) on
investments and assets and
liabilities in foreign
currencies
NET ASSETS, for 56,906,891 $ 1,117,565,140
shares outstanding
NET ASSET VALUE, offering $19.64
price and redemption price
per share ($1,117,565,140
(divided by) 56,906,891
shares)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30,
2000 (UNAUDITED)
INVESTMENT INCOME $ 5,917,471
Dividends
Interest 1,353,566
Security lending 98,200
7,369,237
Less foreign taxes withheld (454,095)
TOTAL INCOME 6,915,142
EXPENSES
Management fee $ 3,939,232
Transfer agent fees 1,470,130
Accounting and security 275,819
lending fees
Non-interested trustees' 2,091
compensation
Custodian fees and expenses 187,755
Registration fees 59,289
Audit 28,047
Legal 18,839
Miscellaneous 1,826
Total expenses before 5,983,028
reductions
Expense reductions (320,657) 5,662,371
NET INVESTMENT INCOME 1,252,771
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities 132,356,013
Foreign currency transactions 150,737 132,506,750
Change in net unrealized
appreciation (depreciation)
on:
Investment securities (4,374,703)
Assets and liabilities in (97,842) (4,472,545)
foreign currencies
NET GAIN (LOSS) 128,034,205
NET INCREASE (DECREASE) IN $ 129,286,976
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION $ 270,605
Expense reductions Directed
brokerage arrangements
Custodian credits 11,675
Transfer agent credits 38,377
$ 320,657
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
INCREASE (DECREASE) IN NET SIX MONTHS ENDED APRIL 30, YEAR ENDED OCTOBER 31, 1999
ASSETS 2000 (UNAUDITED)
Operations Net investment $ 1,252,771 $ 4,529,623
income
Net realized gain (loss) 132,506,750 93,684,754
Change in net unrealized (4,472,545) 120,565,932
appreciation (depreciation)
NET INCREASE (DECREASE) IN 129,286,976 218,780,309
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (4,609,054) (6,008,790)
From net investment income
In excess of net investment (564,921) -
income
From net realized gain (78,632,646) (26,442,347)
TOTAL DISTRIBUTIONS (83,806,621) (32,451,137)
Share transactions Net 390,643,791 565,425,727
proceeds from sales of shares
Reinvestment of distributions 81,442,423 31,563,831
Cost of shares redeemed (380,836,421) (774,588,535)
NET INCREASE (DECREASE) IN 91,249,793 (177,598,977)
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) 136,730,148 8,730,195
IN NET ASSETS
NET ASSETS
Beginning of period 980,834,992 972,104,797
End of period (including $ 1,117,565,140 $ 980,834,992
under (over) distribution of
net investment income of
$(564,921) and $4,445,154,
respectively)
OTHER INFORMATION
Shares
Sold 19,875,774 32,894,318
Issued in reinvestment of 4,348,232 2,000,226
distributions
Redeemed (19,295,229) (45,257,975)
Net increase (decrease) 4,928,777 (10,363,431)
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SIX MONTHS ENDED APRIL 30, 2000 YEARS ENDED OCTOBER 31,
SELECTED PER-SHARE DATA (UNAUDITED) 1999 1998 1997 1996
Net asset value, beginning of $ 18.87 $ 15.59 $ 17.27 $ 15.18 $ 13.32
period
Income from Investment
Operations
Net investment income .02 D .08 D .16 D .21 D, F .22
Net realized and unrealized 2.37 3.74 (.57) 2.43 1.79
gain (loss)
Total from investment 2.39 3.82 (.41) 2.64 2.01
operations
Less Distributions
From net investment income (.09) (.10) (.11) (.17) (.15)
In excess of net investment (.01) - - - -
income
From net realized gain (1.52) (.44) (1.16) (.38) -
Total distributions (1.62) (.54) (1.27) (.55) (.15)
Net asset value, end of period $ 19.64 $ 18.87 $ 15.59 $ 17.27 $ 15.18
TOTAL RETURN B, C 13.08% 25.18% (2.38)% 17.95% 15.25%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 1,117,565 $ 980,835 $ 972,105 $ 1,161,191 $ 877,218
(000 omitted)
Ratio of expenses to average 1.12% A 1.12% 1.15% 1.18% 1.19%
net assets
Ratio of expenses to average 1.06% A, E 1.07% E 1.12% E 1.16% E 1.18% E
net assets after expense
reductions
Ratio of net investment .23% A .47% .91% 1.24% 1.71%
income to average net assets
Portfolio turnover rate 290% A 164% 100% 85% 49%
A ANNUALIZED
B THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C TOTAL RETURNS FOR PERIODS
OF LESS THAN ONE YEAR ARE
NOT ANNUALIZED.
D NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES
OUTSTANDING DURING THE PERIOD.
E FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
F INVESTMENT INCOME PER SHARE
REFLECTS A SPECIAL DIVIDEND
WHICH AMOUNTED TO $.06 PER
SHARE.
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA 1995
Net asset value, beginning of $ 13.96
period
Income from Investment
Operations
Net investment income .17
Net realized and unrealized (.08)
gain (loss)
Total from investment .09
operations
Less Distributions
From net investment income (.16)
In excess of net investment -
income
From net realized gain (.57)
Total distributions (.73)
Net asset value, end of period $ 13.32
TOTAL RETURN B, C .95%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 659,045
(000 omitted)
Ratio of expenses to average 1.17%
net assets
Ratio of expenses to average 1.16% E
net assets after expense
reductions
Ratio of net investment 2.05%
income to average net assets
Portfolio turnover rate 70%
A ANNUALIZED
B THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C TOTAL RETURNS FOR PERIODS
OF LESS THAN ONE YEAR ARE
NOT ANNUALIZED.
D NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES
OUTSTANDING DURING THE PERIOD.
E FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
F INVESTMENT INCOME PER SHARE
REFLECTS A SPECIAL DIVIDEND
WHICH AMOUNTED TO $.06 PER
SHARE.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
For the period ended April 30, 2000 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Global Balanced Fund, Fidelity International Growth & Income
Fund, Fidelity Diversified International Fund, Fidelity Aggressive
International Fund (formerly Fidelity International Value Fund),
Fidelity Overseas Fund and Fidelity Worldwide Fund (the funds) are
funds of Fidelity Investment Trust (the trust). The trust is
registered under the Investment Company Act of 1940, as amended (the
1940 Act), as an open-end management investment company organized as a
Massachusetts business trust. Each fund is authorized to issue an
unlimited number of shares. The funds' investments in emerging markets
can be subject to social, economic, regulatory, and political
uncertainties and can be extremely volatile. The financial statements
have been prepared in conformity with generally accepted accounting
principles which require management to make certain estimates and
assumptions at the date of the financial statements. The following
summarizes the significant accounting policies of the funds:
SECURITY VALUATION. Securities for which quotations are readily
available are valued using the official closing price or the last sale
price in the principal market in which they are traded. If the last
sale price (on the local exchange) is unavailable, the last evaluated
quote or closing bid price normally is used. If trading or events
occurring in other markets after the close of the principal market in
which securities are traded are expected to materially affect the
value of those securities, then they are valued at their fair value
taking this trading or these events into account. Fair value is
determined in good faith under consistently applied procedures under
the general supervision of the Board of Trustees. Securities
(including restricted securities) for which quotations are not readily
available are valued primarily using dealer-supplied valuations or at
their fair value. Short-term securities with remaining maturities of
sixty days or less for which quotations are not readily available are
valued at amortized cost or original cost plus accrued interest, both
of which approximate current value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the funds are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Purchases
and sales of securities, income receipts and expense payments are
translated into U.S. dollars at the prevailing exchange rate on the
respective dates of the transactions.
Net realized gains and losses on foreign currency transactions
represent net gains and losses from sales and maturities of foreign
currency contracts, disposition of foreign currencies, the difference
between the amount of net investment income accrued and the U.S.
dollar amount actually received, and gains and losses between trade
and settlement date on purchases and sales of securities. The effects
of changes in foreign currency exchange rates on investments in
securities are included with the net realized and unrealized gain or
loss on investment securities.
INCOME TAXES. As a qualified regulated investment company under
Subchapter M of the Internal Revenue Code, each fund is not subject to
U.S. federal income taxes to the extent that it distributes
substantially all of its taxable income for its fiscal year. Each fund
may be subject to foreign taxes on income and gains on investments
which are accrued based upon each fund's understanding of the tax
rules and regulations that exist in the markets in which they invest.
Foreign governments may also impose taxes on other payments or
transactions with respect to foreign securities. Each fund accrues
such taxes as applicable. The schedules of investments include
information regarding income taxes under the caption "Income Tax
Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend
date, except certain dividends from foreign securities where the
ex-dividend date may have passed, are recorded as soon as the funds
are informed of the ex-dividend date. Non-cash dividends included in
dividend income, if any, are recorded at the fair market value of the
securities received. Interest income, which includes accretion of
original issue discount, is accrued as earned. Investment income is
recorded net of foreign taxes withheld where recovery of such taxes is
uncertain.
EXPENSES. Most expenses of the trust can be directly attributed to a
fund. Expenses which cannot be directly attributed are apportioned
among the funds in the trust.
DEFERRED TRUSTEE COMPENSATION. Under a Deferred Compensation Plan (the
Plan) non-interested Trustees must defer receipt of a portion of, and
may elect to defer receipt of an additional portion of, their annual
compensation. Deferred amounts are treated as though equivalent dollar
amounts had been invested in shares of the fund or are invested in a
cross-section of other Fidelity funds. Deferred amounts remain in the
fund until distributed in accordance with the Plan.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date.
Income and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles. These differences, which may result in
distribution reclassifications, are primarily due to differing
treatments for futures transactions, foreign currency transactions,
passive foreign investment companies (PFIC), market discount,
non-taxable dividends and losses deferred due to wash sales. Certain
funds also utilized earnings and profits distributed to shareholders
on redemption of shares as a part of the dividends paid deduction for
income tax purposes.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital.
Undistributed net investment income, distributions in excess of net
investment income and accumulated undistributed net realized gain
(loss) on investments and foreign currency transactions may include
temporary book and tax basis differences which will reverse in a
subsequent period. Any taxable income or gain remaining at fiscal year
end is distributed in the following year.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
SHORT-TERM TRADING (REDEMPTION) FEES. Shares held in the funds less
than 30 days will be subject to a short-term trading fee equal to 1%
of the proceeds of the redeemed shares, beginning May 31, 2000. The
fee, which will be retained by the funds, will be accounted for as an
addition to paid in capital.
SECURITY TRANSACTIONS. Security transactions are accounted for as of
trade date. Gains and losses on securities sold are determined on the
basis of identified cost.
2. OPERATING POLICIES.
FOREIGN CURRENCY CONTRACTS. Certain funds use foreign currency
contracts to facilitate transactions in foreign-denominated
securities. Losses may arise from changes in the value of the foreign
currency or if the counterparties do not perform under the contracts'
terms. The U.S. dollar value of foreign currency contracts is
determined using contractual currency exchange rates established at
the time of each trade.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission (the SEC) the funds, along with
other affiliated entities of Fidelity Management & Research Company
(FMR), may transfer uninvested cash balances into one or more joint
trading accounts. These balances are invested in one or more
repurchase agreements for U.S. Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury, Federal Agency,
or other obligations found to be satisfactory by FMR are transferred
to an account of the funds, or to the Joint Trading Account, at a bank
custodian. The securities are marked-to-market daily and maintained at
a value at least equal to the principal amount of the repurchase
agreement (including accrued interest). FMR, the funds' investment
adviser, is responsible for determining that the value of the
underlying securities remains in accordance with the market value
requirements stated above.
CENTRAL CASH FUNDS. Pursuant to an Exemptive Order issued by the SEC,
the funds may invest in the Taxable Central Cash Fund and the Central
Cash Collateral Fund (the Cash Funds) managed by Fidelity Investments
Money Management, Inc., an affiliate of FMR. The Cash Funds are
open-end money market funds available only to investment companies and
other accounts managed by FMR and its affiliates. The Cash Funds seek
preservation of capital, liquidity, and current income. Income
distributions from the Cash Funds are declared daily and paid monthly
from net interest income. Income distributions earned by the funds are
recorded as either interest income or security lending income in the
accompanying financial statements.
WHEN-ISSUED SECURITIES. Each fund may purchase or sell securities on a
when-issued basis. Payment and delivery may take place after the
customary settlement period for that security. The price of the
underlying securities is fixed at the time the transaction is
negotiated. The market values of the securities purchased on a
when-issued or forward commitment basis are identified as such in each
applicable fund's schedule of investments. Each fund may receive
compensation for interest forgone in the purchase of a when-issued
security. With respect to purchase commitments, each fund identifies
securities as segregated in its records with a value at least equal to
the amount of the commitment. Losses may arise due to changes in the
market value of the underlying securities, if the counterparty does
not perform under the contract, or if the issuer does not issue the
securities due to political, economic, or other factors.
FUTURES CONTRACTS. Certain funds may use futures contracts to manage
their exposure to the stock market and to fluctuations in currency
values. Buying futures tends to increase a fund's exposure to the
underlying instrument, while selling futures tends to decrease a
fund's exposure to the underlying instrument or hedge other fund
investments. Losses may arise from changes in the value of the
underlying instruments or if the counterparties do not perform under
the contracts' terms. Gains (losses) are realized upon the expiration
or closing of the futures contracts. Futures contracts are valued at
the settlement price established each day by the board of trade or
exchange on which they are traded.
RESTRICTED SECURITIES. Certain funds are permitted to invest in
securities that are subject to legal or contractual restrictions on
resale. These securities generally may be resold in transactions
exempt from registration or to the public if the securities are
registered. Disposal of these securities may involve time-consuming
negotiations and expense, and prompt sale at an acceptable price may
be difficult. Information regarding restricted securities is included
under the caption "Other Information" at the end of each applicable
fund's schedule of investments.
3. PURCHASES AND SALES OF INVESTMENTS.
Information regarding purchases and sales of securities (other than
short-term securities), and the market value of future contracts
opened and closed, is included under the caption "Other Information"
at the end of each applicable fund's schedule of investments.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As each fund's investment adviser, FMR receives a
monthly basic fee that is calculated on the basis of a group fee rate
plus a fixed individual fund fee rate applied to the average net
assets of each fund. The group fee rate is the weighted average of a
series of rates and is based on the monthly average net assets of all
the mutual funds advised by FMR. The rates ranged from .2167% to
.5200% for the period. The annual individual fund fee rate is .45%. In
the event that these rates were lower than the contractual rates in
effect during the period, FMR voluntarily implemented the above rates,
as they resulted in the same or a lower management fee. The basic fee
for Diversified International, Aggressive International and Overseas
is subject to a performance adjustment (up to a maximum of
(plus/minus).20% of the fund's average
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
MANAGEMENT FEE - CONTINUED
net assets over the performance period) based on each fund's
investment performance as compared to the appropriate index over a
specified period of time. For the period, each fund's management fees
was equivalent to the following annualized rates expressed as a
percentage of average net assets after the performance adjustment, if
applicable:
Global Balanced .73%
International Growth & Income .73%
Diversified International .83%
Aggressive International .86%
Overseas .89%
Worldwide .73%
SUB-ADVISER FEE. FMR, on behalf of the funds, entered into
sub-advisory agreements with Fidelity Management & Research (U.K.)
Inc., Fidelity Management & Research (Far East) Inc., Fidelity
International Investment Advisors (FIIA), and Fidelity Investments
Japan Limited (FIJ). In addition, FIIA entered into a sub-advisory
agreement with its subsidiary, Fidelity International Investment
Advisors (U.K.) Limited (FIIA(U.K.)L). Under the sub-advisory
arrangements, FMR may receive investment advice and research services
and may grant the sub-advisers investment management authority to buy
and sell securities. FMR pays its sub-advisers either a portion of its
management fee or a fee based on costs incurred for these services.
FIIA pays FIIA(U.K.)L a fee based on costs incurred for either
service.
SALES LOAD. Fidelity Distributors Corporation (FDC), an affiliate of
FMR, is the general distributor of the fund. Shares of International
Growth & Income purchased prior to October 12, 1990, are subject to a
1% deferred sales charge upon redemption. The amounts received by FDC
for deferred sales charges are shown under the caption "Other
Information" on the fund's Statement of Operations.
TRANSFER AGENT FEES. Fidelity Service Company, Inc. (FSC), an
affiliate of FMR, is the funds' transfer, dividend disbursing and
shareholder servicing agent. FSC receives account fees and asset-based
fees that vary according to account size and type of account. FSC pays
for typesetting, printing and mailing of all shareholder reports,
except proxy statements. For the period, each fund's transfer agent
fees was equivalent to an annualized rate expressed as a percentage of
average net assets:
Global Balanced .25%
International Growth & Income .24%
Diversified International .25%
Aggressive International .20%
Overseas .24%
Worldwide .28%
ACCOUNTING AND SECURITY LENDING FEES. FSC maintains each fund's
accounting records and administers the security lending program. The
security lending fee is based on the number and duration of lending
transactions. The accounting fee is based on the level of average net
assets for the month plus out-of-pocket expenses.
BROKERAGE COMMISSIONS. Certain funds placed a portion of their
portfolio transactions with brokerage firms which are affiliates of
FMR. The commissions paid to these affiliated firms are shown under
the caption "Other Information" at the end of each applicable fund's
schedule of investments.
5. SECURITY LENDING.
Certain funds lend portfolio securities from time to time in order to
earn additional income. Each applicable fund receives collateral(in
the form of U.S. Treasury obligations, letters of credit and/or cash)
against the loaned securities and maintains collateral in an amount
not less than 100% of the market value of the loaned securities during
the period of the loan. The market value of the loaned securities is
determined at the close of business of the funds and any additional
required collateral is delivered to the funds on the next business
day. If the borrower defaults on its obligation to return the
securities loaned because of insolvency or other reasons, a fund could
experience delays and costs in recovering the securities loaned or in
gaining access to the collateral. Information regarding the value of
securities loaned and the value of collateral at period end is
included under the caption "Other Information" at the end of each
applicable fund's schedule of investments.
6. BANK BORROWINGS.
Each fund is permitted to have bank borrowings for temporary or
emergency purposes to fund shareholder redemptions. Each fund has
established borrowing arrangements with certain banks. The interest
rate on the borrowings is the bank's base rate, as revised from time
to time. Information regarding a fund's participation in the program
is included under the caption "Other Information" at the end of each
applicable fund's schedule of investments.
7. EXPENSE REDUCTIONS.
FMR has directed certain portfolio trades to brokers who paid a
portion of certain funds' expenses.
In addition, through arrangements with certain fund's custodian and
transfer agent, credits realized as a result of uninvested cash
balances were used to reduce a portion of each applicable fund's
expenses.
For the period, the reductions under these arrangements are shown
under the caption "Other Information" on each applicable fund's
Statement of Operations.
8. TRANSACTIONS WITH AFFILIATED COMPANIES.
An affiliated company is a company which the fund has ownership of at
least 5% of the voting securities. Information regarding transactions
with affiliated companies is included in "Other Information" at the
end of each applicable fund's schedule of investments.
9. CHANGE IN INDEPENDENT AUDITOR.
Based on the recommendation of the Audit Committee of the Fidelity
Aggressive International Fund (formerly Fidelity International Value
Fund), the Board of Trustees has determined not to retain
PricewaterhouseCoopers LLP as the fund's independent auditor and voted
to appoint Deloitte & Touche LLP for the fiscal year ended October 31,
2000. During the two most recent fiscal years and through January 20,
2000, PricewaterhouseCoopers LLP's audit reports contained no adverse
opinion or disclaimer of opinion; nor were their reports qualified as
to uncertainty, audit scope, or accounting principles. Further, there
were no disagreements between Fidelity Aggressive International Fund
and PricewaterhouseCoopers LLP on accounting principles, financial
statements disclosure or audit scope, which if not resolved to the
satisfaction of PricewaterhouseCoopers LLP would have caused them to
make reference to the disagreement in their report.
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
INVESTMENT SUB-ADVISERS
Fidelity Management & Research (U.K.) Inc.
Fidelity Management & Research (Far East) Inc.
Fidelity International Investment Advisors
Fidelity International Investment Advisors
(U.K.) Limited
Fidelity Investments Japan Limited
OFFICERS
Edward C. Johnson 3d, PRESIDENT
Robert C. Pozen, SENIOR VICE PRESIDENT
Robert Lawrence, VICE PRESIDENT, DIVERSIFIED INTERNATIONAL FUND
Richard Spillane Jr., VICE PRESIDENT, INTERNATIONAL GROWTH &
INCOME FUND, AGGRESSIVE INTERNATIONAL FUND, OVERSEAS FUND,
WORLDWIDE FUND
Penelope A. Dobkin, VICE PRESIDENT, WORLDWIDE FUND
Gregory Fraser, VICE PRESIDENT, DIVERSIFIED INTERNATIONAL FUND
Richard Mace Jr., VICE PRESIDENT, AGGRESSIVE INTERNATIONAL FUND,
OVERSEAS FUND
Eric D. Roiter, SECRETARY
Robert A. Dwight, TREASURER
Matthew N. Karstetter, DEPUTY TREASURER
Maria F. Dwyer, DEPUTY TREASURER
John H. Costello, ASSISTANT TREASURER
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
Donald J. Kirk *
Ned C. Lautenbach *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Michael Cook
Abigail P. Johnson
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
* INDEPENDENT TRUSTEES
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Company, Inc.
Boston, MA
CUSTODIAN
Chase Manhattan Bank, N.A.
New York, NY
FIDELITY'S INTERNATIONAL EQUITY FUNDS
Aggressive International Fund
Canada Fund
Diversified International Fund
Emerging Markets Fund
Europe Fund
Europe Capital Appreciation Fund
France Fund
Germany Fund
Global Balanced Fund
Hong Kong and China Fund
International Growth & Income Fund
Japan Fund
Japan Small Companies Fund
Latin America Fund
Nordic Fund
Overseas Fund
Pacific Basin Fund
Southeast Asia Fund
United Kingdom Fund
Worldwide Fund
CORPORATE HEADQUARTERS
82 Devonshire Street
Boston, MA 02109
1-800-544-8888
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST(registered trademark)) 1-800-544-5555
AUTOMATED LINE FOR QUICKEST SERVICE
(registered trademark)
BULK RATE
U.S. Postage
PAID
Fidelity
Investments
P.O. Box 193
Boston, MA 02101
(2_FIDELITY_LOGOS)FIDELITY'S
TARGETED INTERNATIONAL EQUITY
FUNDS
Fidelity(registered trademark) 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
Fidelity Latin America Fund
Fidelity Nordic Fund
Fidelity Pacific Basin Fund
Fidelity Southeast Asia Fund
SEMIANNUAL REPORT
APRIL 30, 2000
CONTENTS
MARKET RECAP 4 A REVIEW OF WHAT HAPPENED IN
WORLD MARKETS
DURING THE PAST 6 MONTHS.
CANADA FUND 5 PERFORMANCE
6 FUND TALK: THE MANAGERS'
OVERVIEW
7 INVESTMENT CHANGES
8 INVESTMENTS
12 FINANCIAL STATEMENTS
EMERGING MARKETS FUND 14 PERFORMANCE
15 FUND TALK: THE MANAGER'S
OVERVIEW
16 INVESTMENT CHANGES
17 INVESTMENTS
20 FINANCIAL STATEMENTS
EUROPE FUND 22 PERFORMANCE
23 FUND TALK: THE MANAGER'S
OVERVIEW
24 INVESTMENT CHANGES
25 INVESTMENTS
28 FINANCIAL STATEMENTS
EUROPE CAPITAL APPRECIATION 30 PERFORMANCE
FUND 31 FUND TALK: THE MANAGER'S
OVERVIEW
32 INVESTMENT CHANGES
33 INVESTMENTS
35 FINANCIAL STATEMENTS
HONG KONG AND CHINA FUND 37 PERFORMANCE
38 FUND TALK: THE MANAGER'S
OVERVIEW
39 INVESTMENT CHANGES
40 INVESTMENTS
43 FINANCIAL STATEMENTS
JAPAN FUND 45 PERFORMANCE
46 FUND TALK: THE MANAGER'S
OVERVIEW
47 INVESTMENT CHANGES
48 INVESTMENTS
51 FINANCIAL STATEMENTS
JAPAN SMALLER COMPANIES FUND 53 PERFORMANCE
54 FUND TALK: THE MANAGER'S
OVERVIEW
55 INVESTMENT CHANGES
56 INVESTMENTS
59 FINANCIAL STATEMENTS
LATIN AMERICA FUND 61 PERFORMANCE
62 FUND TALK: THE MANAGER'S
OVERVIEW
63 INVESTMENT CHANGES
64 INVESTMENTS
66 FINANCIAL STATEMENTS
NORDIC FUND 68 PERFORMANCE
69 FUND TALK: THE MANAGER'S
OVERVIEW
70 INVESTMENT CHANGES
71 INVESTMENTS
73 FINANCIAL STATEMENTS
PACIFIC BASIN FUND 75 PERFORMANCE
76 FUND TALK: THE MANAGER'S
OVERVIEW
77 INVESTMENT CHANGES
78 INVESTMENTS
81 FINANCIAL STATEMENTS
SOUTHEAST ASIA FUND 83 PERFORMANCE
84 FUND TALK: THE MANAGER'S
OVERVIEW
85 INVESTMENT CHANGES
86 INVESTMENTS
88 FINANCIAL STATEMENTS
NOTES TO FINANCIAL STATEMENTS 90 NOTES TO THE FINANCIAL
STATEMENTS
PROXY VOTING RESULTS 94
Standard & Poor's, S&P and S&P 500 are registered service marks of The
McGraw-Hill Companies, Inc. and have been licensed for use by
Fidelity Distributors Corporation.
Third party marks appearing herein are the property of their
respective owners.
All other marks appearing herein are registered or unregistered
trademarks or service marks of FMR Corp. or an affiliated company.
This report is printed on recycled paper using soy-based inks.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF EACH FUND'S
PORTFOLIO MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS
STATED ON THE COVER AND DO NOT NECESSARILY REPRESENT THE VIEWS OF
FIDELITY OR ANY OTHER PERSON IN THE FIDELITY ORGANIZATION. ANY SUCH
VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER
CONDITIONS AND FIDELITY DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH
VIEWS. THESE VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND,
BECAUSE INVESTMENT DECISIONS FOR A FIDELITY FUND ARE BASED ON NUMEROUS
FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON
BEHALF OF ANY FIDELITY FUND.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE
SUBMITTED FOR THE GENERAL INFORMATION OF THE SHAREHOLDERS OF THE
FUNDS. THIS REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE
INVESTORS IN THE FUNDS UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE
PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED
BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC,
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT
INVESTED.
NEITHER THE FUNDS NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK. FOR
MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL 1-800-544-6666 FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE
YOU INVEST OR SEND MONEY.
MARKET RECAP
Stock markets around the world demonstrated remarkable parallels in
general performance during the six-month period ending April 30, 2000.
The first four months of the period were characterized by investors'
infatuation with new economy stocks - primarily technology and
communications issues - at the expense of nearly every other segment
of the market. In March and April, however, rising interest rates and
inflation fears in the U.S. helped spark a worldwide tech sell-off
that, for the most part, wiped out all of 2000's year-to-date gains.
EUROPE: New economy stocks lifted the Old World's equity markets for
most of the six months ending April 30, 2000. Europe entered the
period on an upbeat note. Its overall economy was improving, corporate
profits were rising, and its equity markets were enjoying the rapid
appreciation of Internet and wireless stocks. That backdrop lasted
through mid-March, when new economy stocks hit the wall. From that
point through the end of April, European equity markets fell in
conjunction with the rest of the world's. Overall, however, the
six-month period was a strong one given the 8.43% return of the Morgan
Stanley Capital International (MSCI) Europe Index.
EMERGING MARKETS: Traditionally among the most turbulent investment
opportunities, emerging markets were some of the strongest performers
during the past six months. Asian emerging markets performed very well
for the most part, but were among the first regions to fall victim to
volatile new economy stocks and U.S. inflation fears. South Korea and
Hong Kong were two of the stronger performers, while Taiwan, India and
Singapore all benefited from their well-developed technology
industries. For the period, the MSCI All Country Asia Free ex-Japan
Index returned 7.23%. Latin American emerging markets performed even
better, based on the 20.84% return of the MSCI Emerging Markets
Free-Latin America Index. Mexico, the largest country in the index,
was its top performer. European emerging markets also were solid.
Russia was a tremendous turnaround story, while the Turkish market
posted exceptional gains, boosted by an International Monetary Fund
loan and its European Union candidacy.
JAPAN AND THE FAR EAST: After gaining a stellar 75.89% in 1999, the
Tokyo Stock Exchange Index - a gauge of the Japanese market better
known as TOPIX - was down over 9% through the first four months of
2000. What changed? Japan's economy, the world's second largest,
slipped into a recession late last year, and investors began to shy
away from "New Japan" - akin to new economy - stocks on fears that
profit expectations would not be met and that the stocks were
overpriced. For the six months ending April 30, 2000, the TOPIX index
was up 2.10%. Conversely, Hong Kong and China maintained their
momentum from 1999, benefiting in part from fast-growing economies and
China's impending entry into the World Trade Organization. For the
period, the Hang Seng Index returned 16.77%.
U.S. AND CANADA: Record-setting equity market performance driven by
soaring telecommunications and technology stocks, a strong economy,
historically low levels of unemployment, and a Federal Reserve Board
trying to keep it all from spiraling out of control were just a few of
the contributing factors to U.S. stock market performance for the past
six months. And how this story ended was similar around the world -
with a steep, six-week plunge in new economy stocks that wiped out
most of the new year's gains. For the six-month period, the Standard &
Poor's 500SM Index returned 7.20%. The tech-heavy NASDAQ Composite
Index gained 30.28% - despite falling over 15% in the month of April -
while the Dow Jones Industrial Average gained 0.78%. The Canadian
equity market - traditionally driven by natural resources stocks -
also benefited from surging tech shares, which in 1999 helped the
Toronto Stock Exchange (TSE) 300 post its best performance of the
decade. Also, because the TSE 300 was a bit broader than most major
equity indexes, it didn't fall as much during the tech correction in
April. The TSE gained 28.83% during the past six months, one of the
best returns of any broad-based equity index in the world for that
time.
BONDS: Accelerating interest rates and compelling stock market returns
took their toll on U.S. fixed-income investments. However, many bonds
bounced back somewhat as a haven from turbulent equities in the later
stages of the six-months ending April 30. During this time, the U.S.
taxable bond market, as measured by the Lehman Brothers Aggregate Bond
Index, gained 1.42%. Treasuries were one of the strongest bond
segments in the U.S., sparked by the Treasury's plans to buy back
long-term debt and curtail future government debt auctions. For the
period, the Lehman Brothers Long Term Government Index returned 4.54%.
Government bonds internationally fared even worse, highlighted by the
Salomon Brothers Non-U.S. World Government Bond Index return of
-6.86%. For bonds, emerging markets were the place to be, as the JP
Morgan Emerging Markets Bond Index returned 12.43% for the past six
months.
Standard & Poor's 500 Index Morgan Stanley Capital International
Europe, Australasia, Far East Index
* YEAR TO DATE THROUGH APRIL 30, 2000.
Row: 1, Col: 1, Value: nil
Row: 1, Col: 2, Value: nil
Row: 2, Col: 1, Value: 6.1
Row: 2, Col: 2, Value: 7.38
Row: 3, Col: 1, Value: 31.57
Row: 3, Col: 2, Value: 56.16
Row: 4, Col: 1, Value: 18.56
Row: 4, Col: 2, Value: 69.44000000000001
Row: 5, Col: 1, Value: 5.1
Row: 5, Col: 2, Value: 24.63
Row: 6, Col: 1, Value: 16.61
Row: 6, Col: 2, Value: 28.27
Row: 7, Col: 1, Value: 31.69
Row: 7, Col: 2, Value: 10.53
Row: 8, Col: 1, Value: -3.1
Row: 8, Col: 2, Value: -23.45
Row: 9, Col: 1, Value: 30.47
Row: 9, Col: 2, Value: 12.13
Row: 10, Col: 1, Value: 7.619999999999999
Row: 10, Col: 2, Value: -12.17
Row: 11, Col: 1, Value: 10.08
Row: 11, Col: 2, Value: 32.56
Row: 12, Col: 1, Value: 1.32
Row: 12, Col: 2, Value: 7.78
Row: 13, Col: 1, Value: 37.58
Row: 13, Col: 2, Value: 11.21
Row: 14, Col: 1, Value: 22.96
Row: 14, Col: 2, Value: 6.05
Row: 15, Col: 1, Value: 32.11
Row: 15, Col: 2, Value: 4.819999999999999
Row: 16, Col: 1, Value: 28.58
Row: 16, Col: 2, Value: 20.27
Row: 17, Col: 1, Value: 12.03
Row: 17, Col: 2, Value: 12.79
Row: 18, Col: 1, Value: -0.78
Row: 18, Col: 2, Value: -5.3
%
CANADA
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value). If Fidelity had not reimbursed certain fund
expenses, the past five year and past 10 year total returns would have
been lower.
CUMULATIVE TOTAL RETURNS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PERIODS ENDED OCTOBER 31, 1994 PAST 6 MONTHS PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY CANADA 33.86% 41.41% 79.50% 153.71%
FIDELITY CANADA (INCL. 29.84% 37.17% 74.12% 146.10%
3.00% SALES CHARGE)
Toronto Stock Exchange 300 28.83% 32.96% 118.68% 181.25%
</TABLE>
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or 10 years. For example, if you had invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment
would be $1,050. You can compare the fund's returns to the performance
of the Toronto Stock Exchange (TSE) 300 Index - a market
capitalization-weighted index of 300 stocks traded in the Canadian
market.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1994 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY CANADA 41.41% 12.41% 9.76%
FIDELITY CANADA (INCL. 3.00% 37.17% 11.73% 9.42%
SALES CHARGE)
Toronto Stock Exchange 300 32.96% 16.94% 10.89%
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER 10 YEARS
Canada Toronto Stck Exchange 300
00309 DR001
1990/04/30 9700.00 10000.00
1990/05/31 10338.16 10681.34
1990/06/30 10579.24 10699.83
1990/07/31 10664.33 10883.21
1990/08/31 10047.44 10224.78
1990/09/30 9884.36 9702.06
1990/10/31 9622.00 9384.95
1990/11/30 9933.99 9646.93
1990/12/31 10246.12 10065.74
1991/01/31 10291.56 10105.15
1991/02/28 11238.17 10847.21
1991/03/31 11730.41 10919.58
1991/04/30 11821.28 10908.01
1991/05/31 12343.81 11278.09
1991/06/30 12358.96 11107.91
1991/07/31 12321.09 11270.56
1991/08/31 12215.07 11321.80
1991/09/30 11806.14 11044.59
1991/10/31 12328.67 11565.42
1991/11/30 11866.72 11261.80
1991/12/31 12058.05 11316.13
1992/01/31 12275.39 11415.32
1992/02/29 12347.83 11324.47
1992/03/31 12001.71 10770.69
1992/04/30 11856.82 10579.33
1992/05/31 11961.46 10609.03
1992/06/30 11897.06 10699.75
1992/07/31 12202.94 11017.98
1992/08/31 12017.81 10821.01
1992/09/30 11502.64 10096.78
1992/10/31 11454.35 10289.40
1992/11/30 11422.15 9773.30
1992/12/31 11711.96 10140.38
1993/01/31 11647.48 10042.31
1993/02/28 12372.93 10651.99
1993/03/31 13050.01 11087.61
1993/04/30 13388.55 11554.58
1993/05/31 13573.95 11887.04
1993/06/30 14267.15 12075.08
1993/07/31 13751.28 12063.71
1993/08/31 14097.88 12283.93
1993/09/30 13404.67 11756.24
1993/10/31 14363.88 12674.41
1993/11/30 14033.40 12332.21
1993/12/31 14695.10 12925.27
1994/01/31 15341.40 13558.13
1994/02/28 14687.02 12993.87
1994/03/31 14145.75 12441.43
1994/04/30 14040.73 12280.63
1994/05/31 14105.36 12481.47
1994/06/30 13329.81 11641.59
1994/07/31 13588.33 12070.23
1994/08/31 14097.28 12732.93
1994/09/30 14169.99 13035.11
1994/10/31 13879.16 12765.66
1994/11/30 12869.32 12000.78
1994/12/31 12934.00 12164.80
1995/01/31 12028.62 11565.91
1995/02/28 12521.73 12044.80
1995/03/31 13305.86 12552.32
1995/04/30 13710.04 12861.00
1995/05/31 14138.48 13259.93
1995/06/30 14332.49 13512.50
1995/07/31 14825.60 13871.08
1995/08/31 14639.68 13804.49
1995/09/30 14849.85 13908.00
1995/10/31 14186.99 13673.55
1995/11/30 14769.02 14151.51
1995/12/31 15442.15 14315.72
1996/01/31 15701.95 15002.26
1996/02/29 15839.97 14956.10
1996/03/31 16083.54 15233.89
1996/04/30 16392.06 15752.71
1996/05/31 16781.76 16010.02
1996/06/30 16237.80 15496.48
1996/07/31 15766.90 15031.86
1996/08/31 16440.77 15784.42
1996/09/30 16887.31 16352.85
1996/10/31 17731.68 17624.72
1996/11/30 18243.17 18814.47
1996/12/31 17906.32 18286.58
1997/01/31 19318.90 19199.31
1997/02/28 18841.26 19079.46
1997/03/31 17560.79 17954.40
1997/04/30 17682.74 18184.57
1997/05/31 19278.25 19720.91
1997/06/30 18942.89 19918.56
1997/07/31 19827.03 21313.18
1997/08/31 19075.00 20374.98
1997/09/30 20355.48 21840.95
1997/10/31 19186.79 20829.76
1997/11/30 18322.98 19636.04
1997/12/31 19001.87 20162.12
1998/01/31 18599.53 19820.55
1998/02/28 19576.64 21474.60
1998/03/31 20450.29 22991.51
1998/04/30 20990.57 23149.13
1998/05/31 20254.87 22539.20
1998/06/30 19749.07 21759.53
1998/07/31 17771.86 19890.45
1998/08/31 13759.97 15317.40
1998/09/30 14196.80 15964.80
1998/10/31 15104.93 17535.10
1998/11/30 15426.80 18055.94
1998/12/31 16166.18 18533.92
1999/01/31 17148.40 19486.43
1999/02/28 16108.40 18340.43
1999/03/31 16593.73 19199.93
1999/04/30 17402.62 21152.02
1999/05/31 17021.29 20430.15
1999/06/30 17668.40 21120.70
1999/07/31 17448.84 20735.49
1999/08/31 17079.06 20624.15
1999/09/30 17263.95 20967.69
1999/10/31 18384.84 21830.14
1999/11/30 19332.39 22619.60
1999/12/31 22722.83 25825.85
2000/01/31 22745.98 26068.96
2000/02/29 24424.44 28000.62
2000/03/31 25639.87 29080.47
2000/04/28 24609.65 28124.59
IMATRL PRASUN SHR__CHT 20000430 20000524 090151 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was
invested in Fidelity Canada Fund on April 30, 1990, and the current
3.00% sales charge was paid. As the chart shows, by April 30, 2000,
the value of the investment would have grown to $24,610 - a 146.10%
increase on the initial investment. For comparison, look at how the
Toronto Stock Exchange 300 Index did over the same period. With
dividends and capital gains, if any, reinvested, the same $10,000
would have grown to $28,125 - a 181.25% increase.
UNDERSTANDING PERFORMANCE
Many markets around the globe offer the
potential for significant growth over time; however,
investing in foreign markets means assuming greater
risks than investing in the United States. Factors like
changes in a country's financial markets, its local
political and economic climate, and the fluctuating
value of its currency create these risks. For these
reasons an international fund's performance may
be more volatile than a fund that invests exclusively
in the United States. Past performance is no
guarantee of future results and you may have a
gain or loss when you sell your shares.
(checkmark)
CANADA
FUND TALK: THE MANAGER'S OVERVIEW
(PORTFOLIO MANAGER PHOTO)
An interview with
Stephen Binder,
Portfolio Manager of Fidelity Canada Fund
Q. HOW DID THE FUND PERFORM, STEPHEN?
A. For the six months that ended April 30, 2000, the fund had a total
return of 33.86%, topping the Toronto Stock Exchange (TSE) 300, which
returned 28.83% during the same period. For the 12-month period that
ended April 30, 2000, the fund returned 41.41%, while the TSE was up
32.96%.
Q. WHAT FACTORS ENABLED THE FUND TO OUTPACE ITS BENCHMARK DURING THE
SIX-MONTH PERIOD?
A. Our positioning within the utilities and technology-rich industrial
products sectors certainly helped. Investors' enthusiasm for the
Internet and voice/data communications fueled a narrow market led by
technology-related stocks. The fund benefited from its significant
exposure to market heavyweights BCE and Nortel Networks. Nortel - a
leading provider of telecommunications equipment - rose sharply during
the period, driving its stake in the index as high as 20% at its peak.
Not surprisingly, the fund's underweighting here hurt relative
performance. However, we managed to offset this underweighting by
gaining exposure to Nortel through our overweighting in BCE - Canada's
largest communications company and a 37% shareholder in Nortel. We
further benefited from BCE's announcement during the period of its
intention to spin off its holdings in Nortel, a move that boosted
BCE's stock and helped narrow the discount it was trading at relative
to the aggregate value of its underlying businesses and investments.
Q. WHAT MAJOR CHANGES DID YOU MAKE SINCE TAKING OVER THE FUND LAST
FALL?
A. I lightened up a bit overall on the fund's tech exposure as we went
along, which helped given the extreme volatility seen late in the
period. The combined BCE/Nortel position became slightly underweighted
as I lowered our exposure to BCE. In turn, I added more exposure to
metals and minerals, hoping to benefit from the rising price of
nickel. This strategy failed, as mining stocks such as Falconbridge
failed to respond in a sustained fashion. The fund's underweighting in
financial stocks helped, although I did raise the fund's stake in
banks toward the end of the period as it became increasingly clear
that fundamentals were better than expected. Additionally, we
participated in a number of IPOs involving mutual life insurance
companies, many of which came at attractive valuations relative to
other financial services firms in Canada. Sun Life was a big winner
for us here.
Q. HOW DID SOME OF YOUR OTHER STRATEGIES PLAY OUT FOR THE FUND?
A. I increased the fund's exposure to the oil and gas sector as the
period wore on, based on my belief in the sustainability of higher
fuel prices. Additional gains can be traced to good stock picking
within the health care sector, including drug stock Biovail.
Conversely, our decision to overweight paper stocks, such as Domtar,
weighed on performance.
Q. WHAT STOCKS HELPED THE MOST? WHICH HURT?
A. C-Mac, an electronics contract manufacturer, enjoyed increased
participation in the red-hot fiber-optics business thanks to the
success of key partner Nortel. Similarly, Celestica and JDS Uniphase
each benefited from booming worldwide demand from communications
customers. On the flip side, the fund suffered from its average
underexposure to strong tech names such as Research In Motion, Mitel
and ATI Technologies. Intertape Polymer slipped on acquisition
integration problems. I sold off the fund's stake in Intertape Polymer
prior to period end.
Q. WHAT'S YOUR OUTLOOK?
A. Technology fundamentals remain strong in general, but given current
valuation levels I'd expect continued volatility. If so, the market
may broaden and stocks with good fundamentals that didn't do well
during the past year may have a shot at doing much better in the
coming months. I'm still optimistic about the prospects for the oil
and gas sector and remain upbeat about the fund's other investments in
natural resources given the strength in global economies. It's
important to note that due to the BCE spin-off, Nortel is expected to
take on a more prominent role in both the index and the fund going
forward. Because Nortel is a volatile stock, we expect it will have a
noticeable influence over the direction of the Toronto market, as well
as fund performance.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET OR OTHER CONDITIONS. FOR MORE INFORMATION, SEE PAGE 3.
FUND FACTS
GOAL: long-term growth of capital by investing
mainly in equity securities of Canadian issuers
FUND NUMBER: 309
TRADING SYMBOL: FICDX
START DATE: November 17, 1987
SIZE: as of April 30, 2000, more than
$72 million
MANAGER: Stephen Binder, since October
1999; associate portfolio manager, Fidelity
Canada Fund, 1998-1999; manager, various
Fidelity Select Portfolios, 1990-1997;
research analyst, 1989-1999; joined Fidelity
in 1989
(checkmark)
CANADA
INVESTMENT CHANGES
AS OF APRIL 30, 2000
Bermuda 0.1%
United States 10.3%
Finland 0.2%
Row: 1, Col: 1, Value: 0.1
Row: 1, Col: 2, Value: 89.2
Row: 1, Col: 3, Value: 0.2
Row: 1, Col: 4, Value: 0.2
Row: 1, Col: 5, Value: 10.3
Grand Cayman
Islands 0.2%
Canada 89.2%
GEOGRAPHIC DIVERSIFICATION (%
OF FUND'S NET ASSETS)
AS OF OCTOBER 31, 1999
United States 8.1%
Row: 1, Col: 1, Value: 91.90000000000001
Row: 1, Col: 2, Value: 8.1
Canada 91.9%
<TABLE>
<CAPTION>
<S> <C> <C>
ASSET ALLOCATION
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Stocks 97.7 97.3
Short-Term Investments and 2.3 2.7
Net Other Assets
TOP TEN STOCKS BY ISSUER AS
OF APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
BCE, Inc. (Telephone Services) 14.9 13.9
Nortel Networks Corp. 11.2 8.0
(Communications Equipment)
Seagram Co. Ltd. (Beverages) 3.5 3.6
C-Mac Industries, Inc. 3.5 1.5
(Electronics)
Toronto Dominion Bank (Banks) 3.3 4.4
Royal Bank of Canada (Banks) 3.1 1.8
Bombardier, Inc. (Aerospace 2.4 1.9
& Defense)
Onex Corp. (Grocery Stores) 2.2 1.8
Ensign Resource Service 2.1 0.9
Group, Inc. (Energy Services)
Suncor Energy, Inc. (Oil & 2.0 1.8
Gas)
48.2 39.6
TOP TEN MARKET SECTORS AS OF
APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Technology 20.7 14.6
Utilities 19.4 19.5
Finance 15.0 12.8
Energy 10.4 9.4
Basic Industries 7.4 11.0
Retail & Wholesale 4.8 3.6
Nondurables 3.8 6.0
Transportation 2.9 4.4
Aerospace & Defense 2.8 2.0
Durables 2.7 1.3
</TABLE>
CANADA
INVESTMENTS APRIL 30, 2000 (UNAUDITED)
Showing Percentage of Net Assets
COMMON STOCKS - 97.7%
SHARES VALUE (NOTE 1)
AEROSPACE & DEFENSE - 2.8%
AEROSPACE & DEFENSE - 2.5%
Alliant Techsystems, Inc. (a) 1,300 $ 90,513
Bombardier, Inc. Class B 63,900 1,717,464
1,807,977
SHIP BUILDING & REPAIR - 0.3%
General Dynamics Corp. 3,300 193,050
TOTAL AEROSPACE & DEFENSE 2,001,027
BASIC INDUSTRIES - 7.4%
CHEMICALS & PLASTICS - 1.0%
NOVA Chemicals Corp. 17,000 383,441
Potash Corp. of Saskatchewan 6,500 350,064
733,505
IRON & STEEL - 0.7%
Dofasco, Inc. 13,200 237,115
Nucor Corp. 3,300 141,900
Prudential Steel Ltd. 13,800 140,721
519,736
METALS & MINING - 3.1%
Alcoa, Inc. 9,800 635,775
Breakwater Resources Ltd. (a) 50,700 102,715
Falconbridge Ltd. 71,940 1,061,513
Inco Ltd. (a) 29,000 455,328
2,255,331
PAPER & FOREST PRODUCTS - 2.6%
Canfor Corp. 26,400 320,908
Domtar, Inc. 73,600 830,038
Smurfit-Stone Container Corp. 10,500 160,125
(a)
Tembec, Inc. Class A (a) 51,500 591,234
1,902,305
TOTAL BASIC INDUSTRIES 5,410,877
CONSTRUCTION & REAL ESTATE -
0.3%
BUILDING MATERIALS - 0.3%
Richelieu Hardware Ltd. (a) 30,800 213,196
CONSTRUCTION - 0.0%
Kaufman & Broad Home Corp. 1,600 30,800
TOTAL CONSTRUCTION & REAL 243,996
ESTATE
DURABLES - 2.7%
AUTOS, TIRES, & ACCESSORIES -
1.7%
Airboss of America Corp. (a) 96,300 188,594
AutoNation, Inc. (a) 4,000 36,500
Magna International, Inc. 21,100 981,760
Class A
Sonic Automotive, Inc. (a) 3,200 35,600
1,242,454
CONSUMER ELECTRONICS - 0.2%
Whirlpool Corp. 2,000 130,250
SHARES VALUE (NOTE 1)
HOME FURNISHINGS - 0.0%
Restoration Hardware, Inc. (a) 100 $ 388
TEXTILES & APPAREL - 0.8%
Gildan Activewear, Inc. Class 16,300 559,294
A (a)
TOTAL DURABLES 1,932,386
ENERGY - 10.4%
ENERGY SERVICES - 2.6%
Ensign Resource Service 53,100 1,482,769
Group, Inc.
Plains Energy Services Ltd. 11,400 50,041
(a)
Precision Drilling Corp. 5,300 168,578
Class A (a)
Trican Well Service Ltd. (a) 23,000 155,321
1,856,709
OIL & GAS - 7.8%
Anderson Exploration Ltd. (a) 14,300 228,870
Bellator Exploration, Inc. (a) 201,500 364,681
Bonavista Petroleum Ltd. (a) 18,600 276,337
Canadian Hunter Exploration 14,200 268,983
Ltd. (a)
Canadian Hunter Exploration 4,000 75,770
Ltd. (a)(c)
Canadian Natural Resources 17,100 456,139
Ltd. (a)
Crestar Energy, Inc. (a) 62,200 882,091
Rio Alto Exploration Ltd. (a) 48,500 851,567
Santa Fe Snyder Corp. (a) 7,581 69,650
Storm Energy, Inc. (a) 22,600 54,180
Suncor Energy, Inc. 34,400 1,469,341
Talisman Energy, Inc. (a) 16,300 485,984
The Coastal Corp. 800 40,150
Tosco Corp. 3,800 121,838
Valero Energy Corp. 2,100 60,900
5,706,481
TOTAL ENERGY 7,563,190
FINANCE - 15.0%
BANKS - 9.7%
Bank of Montreal 11,200 406,537
Bank of New York Co., Inc. 1,100 45,169
Bank of Nova Scotia 21,700 494,581
Canadian Imperial Bank of 52,100 1,365,127
Commerce
Firstar Corp. 1,800 44,775
Royal Bank of Canada 48,000 2,265,802
Toronto Dominion Bank 104,000 2,405,457
7,027,448
CREDIT & OTHER FINANCE - 0.3%
Home Capital Group Class B 83,200 230,362
(sub. vtg.)
FEDERAL SPONSORED CREDIT - 0.5%
Fannie Mae 3,400 205,063
Freddie Mac 320 14,700
SLM Holding Corp. 5,000 156,563
376,326
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
FINANCE - CONTINUED
INSURANCE - 3.4%
Ace Ltd. 2,700 $ 64,631
AMBAC Financial Group, Inc. 2,120 101,760
Brown & Brown, Inc. 800 32,100
Commerce Group, Inc. 1,900 56,050
E.W. Blanch Holdings, Inc. 700 15,575
Industrial Alliance Life 53,300 737,878
Insurance Co. (a)
Manulife Financial Corp. 29,900 469,459
Sun Life Financial Services 74,000 882,023
Canada, Inc.
Xl Capital Ltd. 3,000 142,875
2,502,351
SECURITIES INDUSTRY - 1.1%
AGF Management Ltd. Class B 12,300 302,350
(non-vtg.)
CI Fund Management, Inc. 6,400 101,567
Dain Rauscher Corp. 120 7,433
Mackenzie Financial Corp. 24,900 369,935
781,285
TOTAL FINANCE 10,917,772
HEALTH - 1.9%
DRUGS & PHARMACEUTICALS - 1.3%
Biovail Corp. (a) 5,000 238,553
Eli Lilly & Co. 800 61,850
Forest Laboratories, Inc. (a) 700 58,844
Hemosol, Inc. (a) 9,300 98,602
Human Genome Sciences, Inc. 134 10,259
(a)
IDEC Pharmaceuticals Corp. (a) 76 4,864
Immunex Corp. (a) 1,440 56,700
QLT PhotoTherapeutics, Inc. 7,200 399,676
(a)
929,348
MEDICAL EQUIPMENT & SUPPLIES
- 0.5%
Baxter International, Inc. 1,600 104,200
Biomet, Inc. 2,350 83,866
DENTSPLY International, Inc. 2,800 81,375
Millipore Corp. 1,000 71,688
Novoste Corp. (a) 700 28,700
369,829
MEDICAL FACILITIES MANAGEMENT
- 0.1%
Oxford Health Plans, Inc. (a) 4,000 76,000
TOTAL HEALTH 1,375,177
INDUSTRIAL MACHINERY &
EQUIPMENT - 0.7%
ELECTRICAL EQUIPMENT - 0.4%
Research in Motion Ltd. (a) 5,600 237,871
Teklogix International, Inc. 3,900 62,551
(a)
300,422
SHARES VALUE (NOTE 1)
INDUSTRIAL MACHINERY &
EQUIPMENT - 0.2%
ATS Automation Tooling 6,900 $ 122,316
Systems, Inc. (a)
Mattson Technology, Inc. (a) 860 42,248
164,564
POLLUTION CONTROL - 0.1%
Bennett Environmental, Inc. 15,100 45,479
(a)
TOTAL INDUSTRIAL MACHINERY & 510,465
EQUIPMENT
MEDIA & LEISURE - 1.8%
BROADCASTING - 0.2%
Cogeco, Inc. (sub. vtg.) 7,200 167,747
Time Warner, Inc. 20 1,799
169,546
ENTERTAINMENT - 0.2%
Alliance Atlantis 10,700 133,316
Communications Corp. (a)
LODGING & GAMING - 0.0%
WMS Industries, Inc. (a) 1,120 9,800
PUBLISHING - 1.2%
Hollinger International, Inc. 5,100 64,388
Class A
Quebecor, Inc. Class B (sub. 15,800 474,811
vtg.)
Thomson Corp. 10,000 330,227
869,426
RESTAURANTS - 0.2%
Cheesecake Factory, Inc. (a) 800 32,750
Sportscene Restaurants, Inc. 20,000 97,920
Class A
130,670
TOTAL MEDIA & LEISURE 1,312,758
NONDURABLES - 3.8%
BEVERAGES - 3.5%
Seagram Co. Ltd. 49,000 2,576,074
FOODS - 0.3%
Nabisco Holdings Corp. Class A 4,700 176,544
TOTAL NONDURABLES 2,752,618
PRECIOUS METALS - 1.6%
Barrick Gold Corp. 38,900 654,113
Franco Nevada Mining Corp. 17,156 199,273
Ltd.
Meridian Gold, Inc. (a) 7,800 40,823
Placer Dome, Inc. 27,400 221,117
Teck Corp. Class B (sub. vtg.) 11,140 81,248
1,196,574
RETAIL & WHOLESALE - 4.8%
DRUG STORES - 0.2%
Jean Coutu Group, Inc. Class A 6,600 130,369
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
RETAIL & WHOLESALE - CONTINUED
GENERAL MERCHANDISE STORES -
0.4%
Consolidated Stores Corp. (a) 6,010 $ 74,749
Sears Canada, Inc. 8,400 204,214
278,963
GROCERY STORES - 3.3%
Empire Co. Ltd. Class A 10,900 236,284
(non-vtg.)
Kroger Co. (a) 8,000 148,500
Loblaw Companies Ltd. 15,800 423,595
Onex Corp. 52,200 1,568,679
2,377,058
RETAIL & WHOLESALE,
MISCELLANEOUS - 0.9%
Advanced Marketing Services, 1,200 23,831
Inc.
Forzani Group Ltd. (a) 42,900 120,229
Future Shop Ltd. (a) 25,300 358,793
Lowe's Companies, Inc. 3,900 193,050
695,903
TOTAL RETAIL & WHOLESALE 3,482,293
SERVICES - 1.5%
ADVERTISING - 0.2%
DoubleClick, Inc. (a) 1,800 136,575
LEASING & RENTAL - 0.0%
Rent-A-Center, Inc. (a) 1,500 30,563
PRINTING - 0.9%
Creo Products, Inc. 5,400 196,009
Quebecor World, Inc. 19,000 431,118
627,127
SERVICES - 0.4%
Ecolab, Inc. 140 5,469
Mosaic Group, Inc. (a) 13,600 153,377
Robert Half International, 2,600 158,925
Inc. (a)
317,771
TOTAL SERVICES 1,112,036
TECHNOLOGY - 20.7%
COMMUNICATIONS EQUIPMENT -
12.1%
Comverse Technology, Inc. (a) 1,700 151,619
Mitel Corp. (a) 14,900 373,305
Nokia AB sponsored ADR 2,300 130,813
Nortel Networks Corp. 72,100 8,150,689
8,806,426
COMPUTER SERVICES & SOFTWARE
- 0.7%
Adobe Systems, Inc. 1,600 193,500
CMGI, Inc. (a) 500 35,625
SHARES VALUE (NOTE 1)
Electronic Data Systems Corp. 2,400 $ 165,000
Informission Group, Inc. (a) 3,500 115,816
509,941
COMPUTERS & OFFICE EQUIPMENT
- 0.7%
ATI Technologies, Inc. (a) 23,900 462,409
Emulex Corp. (a) 1,300 58,988
521,397
ELECTRONIC INSTRUMENTS - 1.3%
JDS Uniphase Canada Ltd. (a) 7,560 782,395
LAM Research Corp. (a) 3,200 146,800
Nanometrics, Inc. (a) 600 23,025
952,220
ELECTRONICS - 5.9%
Analog Devices, Inc. (a) 2,000 153,625
AVX Corp. 1,800 175,388
C-Mac Industries, Inc. (a) 49,900 2,527,350
Celestica, Inc. (sub. vtg.) 22,100 1,192,457
(a)
QLogic Corp. (a) 1,200 120,375
Three-Five Systems, Inc. (a) 1,000 87,000
4,256,195
TOTAL TECHNOLOGY 15,046,179
TRANSPORTATION - 2.9%
AIR TRANSPORTATION - 0.6%
Air Canada (a) 21,543 226,225
Air Canada Class A (non-vtg.) 7,300 67,291
(a)
WestJet Airlines Ltd. (a) 9,400 164,729
458,245
RAILROADS - 2.3%
Canadian National Railway Co. 20,900 583,614
Canadian Pacific Ltd. 44,900 1,044,574
1,628,188
TOTAL TRANSPORTATION 2,086,433
UTILITIES - 19.4%
CELLULAR - 2.1%
Nextel Communications, Inc. 1,370 149,929
Class A (a)
Rogers Communications, Inc. 53,600 1,395,381
Class B (non-vtg.) (a)
1,545,310
ELECTRIC UTILITY - 0.1%
AES Corp. (a) 1,100 98,931
GAS - 2.0%
ATCO Ltd. Class I (non-vtg.) 29,700 671,900
BC Gas, Inc. 7,700 139,617
Enbridge, Inc. 23,450 506,753
Kinder Morgan, Inc. 4,200 127,313
Williams Companies, Inc. 600 22,388
1,467,971
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
UTILITIES - CONTINUED
TELEPHONE SERVICES - 15.2%
Aliant, Inc. 6,698 $ 165,098
BCE, Inc. 93,300 10,805,600
BellSouth Corp. 500 24,344
Time Warner Telecom, Inc. 450 24,638
11,019,680
TOTAL UTILITIES 14,131,892
TOTAL COMMON STOCKS 71,075,673
(Cost $51,926,378)
CASH EQUIVALENTS - 3.9%
Central Cash Collateral Fund, 1,155,700 1,155,700
5.94% (b)
Taxable Central Cash Fund, 1,682,117 1,682,117
5.77% (b)
TOTAL CASH EQUIVALENTS 2,837,817
(Cost $2,837,817)
TOTAL INVESTMENT PORTFOLIO - 73,913,490
101.6%
(Cost $54,764,195)
NET OTHER ASSETS - (1.6)% (1,165,358)
NET ASSETS - 100% $ 72,748,132
LEGEND
(a) Non-income producing
(b) The rate quoted is the annualized seven-day yield of the fund at
period end.
(c) Security exempt from registration under Rule 144A of the
Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the
period end, the value of these securities amounted to $75,770 or 0.1%
of net assets.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $44,862,622 and $31,700,357, respectively.
The fund placed a portion of its portfolio transactions with brokerage
firms which are affiliates of Fidelity Management & Research Company.
The commissions paid to these affiliated firms were $1,945 for the
period.
The fund participated in the security lending program. At period end,
the value of securities loaned amounted to $1,033,818. The fund
received cash collateral of $1,155,700 which was invested in cash
equivalents.
INCOME TAX INFORMATION
At April 30, 2000, the aggregate cost of investment securities for
income
tax purposes was $55,101,366. Net unrealized appreciation aggregated
$18,812,124, of which $21,078,970 related to appreciated investment
securities and $2,266,846 related to depreciated investment
securities.
At October 31, 1999, the fund had a capital loss carryforward of
approximately $4,511,000, all of which will expire on October 31,
2006.
CANADA
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000 (UNAUDITED)
ASSETS
Investment in securities, at $ 73,913,490
value (cost $54,764,195) -
See accompanying schedule
Cash 24,151
Receivable for investments 1,073,109
sold
Receivable for fund shares 248,848
sold
Dividends receivable 54,753
Interest receivable 11,331
Redemption fees receivable 323
Other receivables 2,547
TOTAL ASSETS 75,328,552
LIABILITIES
Payable for investments $ 1,224,241
purchased
Payable for fund shares 113,910
redeemed
Accrued management fee 31,740
Other payables and accrued 54,829
expenses
Collateral on securities 1,155,700
loaned, at value
TOTAL LIABILITIES 2,580,420
NET ASSETS $ 72,748,132
Net Assets consist of:
Paid in capital $ 56,038,285
Distributions in excess of (8,157)
net investment income
Accumulated undistributed net (2,430,949)
realized gain (loss) on
investments and foreign
currency transactions
Net unrealized appreciation 19,148,953
(depreciation) on
investments and assets and
liabilities in foreign
currencies
NET ASSETS, for 3,421,164 $ 72,748,132
shares outstanding
NET ASSET VALUE and $21.26
redemption price per share
($72,748,132 (divided by)
3,421,164 shares)
Maximum offering price per $21.92
share (100/97.00 of $21.26)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30,
2000 (UNAUDITED)
INVESTMENT INCOME $ 280,158
Dividends
Interest 83,857
Security lending 9,581
373,596
Less foreign taxes withheld (39,547)
TOTAL INCOME 334,049
EXPENSES
Management fee Basic fee $ 222,596
Performance adjustment (73,695)
Transfer agent fees 92,873
Accounting fees and expenses 30,180
Non-interested trustees' 286
compensation
Custodian fees and expenses 28,290
Registration fees 15,943
Audit 19,597
Legal 809
Miscellaneous 44
Total expenses before 336,923
reductions
Expense reductions (14,545) 322,378
NET INVESTMENT INCOME 11,671
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities 2,302,543
Foreign currency transactions (25,864) 2,276,679
Change in net unrealized
appreciation (depreciation)
on:
Investment securities 13,026,245
Assets and liabilities in 527 13,026,772
foreign currencies
NET GAIN (LOSS) 15,303,451
NET INCREASE (DECREASE) IN $ 15,315,122
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION Sales $ 39,523
charges paid to FDC
Sales charges - Retained by $ 39,523
FDC
Deferred sales charges $ 857
withheld by FDC
Expense Reductions $ 10,652
Directed brokerage
arrangements
Custodian credits 3,459
Transfer agent credits 434
$ 14,545
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
INCREASE (DECREASE) IN NET SIX MONTHS ENDED APRIL 30, YEAR ENDED OCTOBER 31, 1999
ASSETS 2000 (UNAUDITED)
Operations Net investment $ 11,671 $ 116,686
income
Net realized gain (loss) 2,276,679 3,321,252
Change in net unrealized 13,026,772 5,467,083
appreciation (depreciation)
NET INCREASE (DECREASE) IN 15,315,122 8,905,021
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (85,857) (248,416)
from net investment income
Share transactions Net 28,136,992 10,888,952
proceeds from sales of shares
Reinvestment of distributions 82,250 237,716
Cost of shares redeemed (14,566,485) (23,488,113)
NET INCREASE (DECREASE) IN 13,652,757 (12,361,445)
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
Redemption fees 95,847 53,318
TOTAL INCREASE (DECREASE) 28,977,869 (3,651,522)
IN NET ASSETS
NET ASSETS
Beginning of period 43,770,263 47,421,785
End of period (including $ 72,748,132 $ 43,770,263
under (over) distribution of
net investment income of
$(8,157) and $66,029,
respectively)
OTHER INFORMATION
Shares
Sold 1,385,736 743,930
Issued in reinvestment of 4,754 17,767
distributions
Redeemed (720,716) (1,618,570)
Net increase (decrease) 669,774 (856,873)
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SIX MONTHS ENDED APRIL 30, 2000 YEARS ENDED OCTOBER 31,
SELECTED PER-SHARE DATA (UNAUDITED) 1999 1998 1997 1996
Net asset value, beginning of $ 15.91 $ 13.14 $ 18.88 $ 21.84 $ 17.55
period
Income from Investment
Operations
Net investment income .00 D .04 D .09 D .03 D .08 D
Net realized and unrealized 5.35 2.78 (3.70) 1.39 4.27
gain (loss)
Total from investment 5.35 2.82 (3.61) 1.42 4.35
operations
Less Distributions
From net investment income (.03) (.07) (.05) (.13) (.08)
From net realized gain - - (2.08) (4.29) -
Total distributions (.03) (.07) (2.13) (4.42) (.08)
Redemption fees added to paid .03 .02 - .04 .02
in capital
Net asset value, end of period $ 21.26 $ 15.91 $ 13.14 $ 18.88 $ 21.84
TOTAL RETURN B, C 33.86% 21.71% (21.27)% 8.21% 24.99%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 72,748 $ 43,770 $ 47,422 $ 96,458 $ 129,671
(000 omitted)
Ratio of expenses to average 1.12% A 1.22% .94% .93% 1.01%
net assets
Ratio of expenses to average 1.07% A, F 1.06% F .80% F .92% F .98% F
net assets after expense
reductions
Ratio of net investment .04% A .26% .57% .18% .40%
income to average net assets
Portfolio turnover rate 111% A 286% 215% 139% 139%
A ANNUALIZED
B THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
D NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES
OUTSTANDING DURING THE PERIOD.
E FMR AGREED TO REIMBURSE A
PORTION OF THE FUND'S
EXPENSES DURING THE PERIOD.
WITHOUT THIS REIMBURSEMENT,
THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
F FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA 1995
Net asset value, beginning of $ 17.18
period
Income from Investment
Operations
Net investment income .05
Net realized and unrealized .33
gain (loss)
Total from investment .38
operations
Less Distributions
From net investment income (.01)
From net realized gain -
Total distributions (.01)
Redemption fees added to paid -
in capital
Net asset value, end of period $ 17.55
TOTAL RETURN B, C 2.22%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 326,763
(000 omitted)
Ratio of expenses to average 1.09% E
net assets
Ratio of expenses to average 1.08% F
net assets after expense
reductions
Ratio of net investment .26%
income to average net assets
Portfolio turnover rate 75%
A ANNUALIZED
B THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
D NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES
OUTSTANDING DURING THE PERIOD.
E FMR AGREED TO REIMBURSE A
PORTION OF THE FUND'S
EXPENSES DURING THE PERIOD.
WITHOUT THIS REIMBURSEMENT,
THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
F FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
</TABLE>
EMERGING MARKETS
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value). Prior to February 19, 1993, Emerging Markets
operated under certain different investment policies. Accordingly, the
fund's historical performance may not represent its current investment
policies.
CUMULATIVE TOTAL RETURNS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PERIODS ENDED OCTOBER 31, 1994 PAST 6 MONTHS PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
FIDELITY EMERGING MARKETS 15.72% 25.09% -18.56% 20.79%
FIDELITY EMERGING MARKETS 12.25% 21.33% -21.00% 17.17%
(INCL. 3.00% SALES CHARGE)
MSCI Emerging Markets Free 13.87% 22.11% 11.80% 192.88%
Emerging Markets Funds 21.35% 29.84% 23.10% n/a
Average
</TABLE>
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or since the fund started on November 1, 1990. For example, if
you had invested $1,000 in a fund that had a 5% return over the past
year, the value of your investment would be $1,050. You can compare
the fund's returns to the performance of the Morgan Stanley Capital
International (MSCI) Emerging Markets Free Index - a market
capitalization-weighted index that is designed to represent the
performance of emerging stock markets throughout the world. As of
April 30, 2000, the index included over 800 equity securities of
companies domiciled in 25 countries. However, to measure how the
fund's performance stacked up against its peers, you can compare it to
the emerging markets funds average, which reflects the performance of
mutual funds with similar objectives tracked by Lipper Inc. The past
six months average represents a peer group of 190 mutual funds. These
benchmarks include reinvested dividends and capital gains, if any, and
exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1994 PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
FIDELITY EMERGING MARKETS 25.09% -4.02% 2.01%
FIDELITY EMERGING MARKETS 21.33% -4.61% 1.68%
(INCL. 3.00% SALES CHARGE)
MSCI Emerging Markets Free 22.11% 2.26% 11.97%
Emerging Markets Funds 29.84% 3.86% n/a
Average
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
Emerging Markets MS EMF Index (Gross)
00322 MS006
1990/11/01 9700.00 10000.00
1990/11/30 9564.20 9571.06
1990/12/31 9777.33 9975.54
1991/01/31 9709.16 10782.17
1991/02/28 10118.17 12378.30
1991/03/31 10108.44 12889.03
1991/04/30 10332.42 13027.70
1991/05/31 10332.42 14052.74
1991/06/30 9972.10 13551.10
1991/07/31 10186.34 14255.08
1991/08/31 10108.44 14557.58
1991/09/30 10225.30 14002.85
1991/10/31 10127.91 14578.49
1991/11/30 9991.58 14362.80
1991/12/31 10438.08 15976.83
1992/01/31 10517.68 17826.43
1992/02/29 10826.15 18620.48
1992/03/31 10806.24 19252.13
1992/04/30 11064.96 19122.79
1992/05/31 11542.58 19054.82
1992/06/30 11522.68 17165.89
1992/07/31 11144.56 17354.93
1992/08/31 10865.95 16548.35
1992/09/30 10796.29 16609.34
1992/10/31 10995.30 17499.53
1992/11/30 10905.75 17309.63
1992/12/31 11048.91 17823.04
1993/01/31 11201.38 17909.23
1993/02/28 11770.60 18207.62
1993/03/31 12095.86 18807.85
1993/04/30 12482.12 19240.41
1993/05/31 12756.56 19769.94
1993/06/30 12919.19 20356.62
1993/07/31 13142.82 20904.76
1993/08/31 14057.63 22673.81
1993/09/30 14372.73 23280.87
1993/10/31 16446.31 25369.70
1993/11/30 17096.84 26492.37
1993/12/31 20082.32 30871.45
1994/01/31 19501.26 31433.12
1994/02/28 18950.78 30873.94
1994/03/31 17115.84 28080.18
1994/04/30 16952.74 27518.51
1994/05/31 17391.08 28460.32
1994/06/30 16167.79 27675.84
1994/07/31 17401.28 29396.67
1994/08/31 19613.39 33045.18
1994/09/30 20112.90 33420.73
1994/10/31 19623.58 32817.87
1994/11/30 18267.77 31111.53
1994/12/31 16480.81 28612.77
1995/01/31 14212.53 25568.64
1995/02/28 14376.01 24912.84
1995/03/31 14089.92 25071.12
1995/04/30 14386.23 26195.85
1995/05/31 15837.11 27589.45
1995/06/30 16021.03 27671.05
1995/07/31 16828.21 28292.18
1995/08/31 16317.33 27625.75
1995/09/30 16245.81 27494.64
1995/10/31 15469.28 26442.14
1995/11/30 14968.62 25970.59
1995/12/31 15956.70 27122.44
1996/01/31 17548.21 29050.35
1996/02/29 17340.17 28588.47
1996/03/31 17464.99 28811.13
1996/04/30 18359.57 29963.08
1996/05/31 18349.17 29829.29
1996/06/30 18276.35 30015.55
1996/07/31 16840.87 27964.18
1996/08/31 17517.00 28679.97
1996/09/30 17901.88 28928.42
1996/10/31 17277.76 28156.91
1996/11/30 18182.73 28628.69
1996/12/31 17552.02 28758.18
1997/01/31 18565.85 30719.77
1997/02/28 19558.57 32035.35
1997/03/31 18470.81 31193.85
1997/04/30 17298.56 31248.96
1997/05/31 17023.98 32143.32
1997/06/30 17150.71 33863.53
1997/07/31 16855.01 34369.04
1997/08/31 13010.88 29995.61
1997/09/30 13422.75 30826.73
1997/10/31 10930.41 25768.45
1997/11/30 10275.64 24828.22
1997/12/31 10395.44 25426.53
1998/01/31 9691.58 23432.32
1998/02/28 10633.67 25878.08
1998/03/31 11055.99 27001.09
1998/04/30 11153.44 26706.95
1998/05/31 9691.58 23047.01
1998/06/30 8727.84 20629.47
1998/07/31 8998.55 21283.56
1998/08/31 6118.15 15129.63
1998/09/30 6594.61 16089.38
1998/10/31 7298.47 17783.62
1998/11/30 7720.78 19262.66
1998/12/31 7634.15 18983.49
1999/01/31 7428.41 18677.21
1999/02/28 7450.07 18858.89
1999/03/31 8348.84 21344.31
1999/04/30 9366.73 23985.04
1999/05/31 9323.41 23845.51
1999/06/30 10590.36 26551.78
1999/07/31 10103.07 25830.49
1999/08/31 10092.24 26065.50
1999/09/30 9756.56 25183.39
1999/10/31 10124.73 25719.61
1999/11/30 11001.84 28025.74
1999/12/31 13015.96 31590.06
2000/01/31 12950.99 31778.34
2000/02/29 13048.45 32198.04
2000/03/31 13221.70 32355.17
2000/04/28 11716.53 29288.14
IMATRL PRASUN SHR__CHT 20000430 20000524 090250 R00000000000117
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Emerging Markets Fund on November 1, 1990, when
the fund started, and the current 3.00% sales charge was paid. As the
chart shows, by April 30, 2000, the value of the investment would have
been $11,717 - a 17.17% increase on the initial investment. For
comparison, look at how the Morgan Stanley Capital International
Emerging Markets Free Index did over the same period. With dividends
and capital gains, if any, reinvested, the same $10,000 would have
grown to $29,288 - a 192.88% increase.
UNDERSTANDING PERFORMANCE
Many markets around the globe offer the
potential for significant growth over time; however,
investing in foreign markets means assuming greater
risks than investing in the United States. Factors like
changes in a country's financial markets, its local
political and economic climate, and the fluctuating
value of its currency create these risks. For these
reasons an international fund's performance may
be more volatile than a fund that invests exclusively
in the United States. Past performance is no
guarantee of future results and you may have a
gain or loss when you sell your shares.
(checkmark)
EMERGING MARKETS
FUND TALK: THE MANAGER'S OVERVIEW
(PORTFOLIO MANAGER PHOTO)
NOTE TO SHAREHOLDERS: Patti Satterthwaite became Portfolio Manager of
Fidelity Emerging Markets Fund on April 1, 2000.
Q. HOW DID THE FUND PERFORM, PATTI?
A. For the six-month period that ended April 30, 2000, the fund
provided a total return of 15.72%. In comparison, the Morgan Stanley
Capital International Emerging Markets Free Index returned 13.87%,
while the emerging markets funds average tracked by Lipper Inc.
returned 21.35%. For the 12-month period that ended April 30, 2000,
the fund returned 25.09%. That compared to the 22.11% return for the
Morgan Stanley index and the 29.84% return for the emerging markets
funds average.
Q. WHY DID THE FUND OUTPERFORM THE INDEX BUT LAG ITS PEERS DURING THE
PAST SIX MONTHS?
A. The biggest contributor to the fund's outperformance relative to
its index was its underweighting in Greece. Greek stocks performed
quite well during most of the period as investors enthusiastically
welcomed news that the country would join the European Union. But the
fund's more cautious stance toward Greece proved beneficial in the
later stages of the period when that market became the victim of its
previous success and investors took profits there. The primary reason
why the fund lagged its peers is that it didn't own any Israeli
technology companies, which were among the emerging markets' best
performers during the period.
Q. WHAT OTHER FACTORS INFLUENCED PERFORMANCE?
A. The fund's overweighted position in Turkey was a positive for the
fund relative to the index. With falling interest rates, moves toward
the privatization of a number of industries, and loans from the
International Monetary Fund, the Turkish market was up more than 200%
during the past six months. One of the fund's biggest winners in that
market was Yapi Credit Bank, one of the largest banks in Turkey.
Interestingly, the bank owns a portion of Turkey's leading cellular
company, which also helped Yapi's performance. Good stock selection in
South Korea was another key contributor. Although the Korean market as
a whole posted only lackluster performance, Korea Telecom and Samsung
Electronics performed quite well.
Q. THE FUND'S HOLDINGS IN MEXICO REPRESENTED 11.8% OF THE FUND'S NET
ASSETS AT THE END OF THE PERIOD. HOW DID THEY PERFORM?
A. The fund's holdings in Mexican banks - particularly Grupo
Financiero Bancomer - were among its best performers. Not only has the
country's strengthening economy helped lift consumer loan activity,
but the banks also have continued to reduce the bad-loan burden they
were saddled with in the early 1990s. Telefonos de Mexico (Telmex)
also performed well as demand for wireless, voice and Internet
services grew. Finally, media company Grupo Televisa was a winner as
advertising revenues improved.
Q. WHAT HOLDINGS DETRACTED FROM PERFORMANCE?
A. The main disappointment during the period was Larsen & Toubro Ltd.,
an Indian construction company. The stock languished as the pace of
restructuring failed to meet expectations. Additionally, as I
mentioned earlier, the fact that the fund didn't own any of the very
strong Israeli technology stocks hurt performance.
Q. WHAT'S YOUR OUTLOOK?
A. I remain optimistic about opportunities in emerging markets.
Macroeconomic factors look positive and I expect the world economy to
continue to post decent, if somewhat slower, growth. Even if growth
slows a bit from here, I believe that the emerging markets as a whole
will do okay. Slower growth is not as big a deal for emerging markets
as it would have been two years or three years ago, when fiscal and
economic conditions were much less stable.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET OR OTHER CONDITIONS. FOR MORE INFORMATION, SEE PAGE 3.
FUND FACTS
GOAL: capital appreciation by investing mainly
in equity securities of emerging market issuers
FUND NUMBER: 322
TRADING SYMBOL: FEMKX
START DATE: November 1, 1990
SIZE: as of April 30, 2000, more than
$503 million
MANAGER: Patti Satterthwaite, since April
2000; manager, Fidelity Latin America Fund,
since 1993; securities and Latin American
analyst, 1986-1990; joined Fidelity in 1986
(checkmark)
EMERGING MARKETS
INVESTMENT CHANGES
AS OF APRIL 30, 2000
Brazil 9.4%
Taiwan 13.4%
Row: 1, Col: 1, Value: 9.4
Row: 1, Col: 2, Value: 4.9
Row: 1, Col: 3, Value: 7.6
Row: 1, Col: 4, Value: 13.5
Row: 1, Col: 5, Value: 4.2
Row: 1, Col: 6, Value: 11.8
Row: 1, Col: 7, Value: 23.7
Row: 1, Col: 8, Value: 4.1
Row: 1, Col: 9, Value: 7.4
Row: 1, Col: 10, Value: 13.4
Hong Kong 4.9%
South Africa 7.4%
India 7.6%
Russia 4.1%
Korea (South) 13.5%
Other 23.7%
Malaysia 4.2%
Mexico 11.8%
GEOGRAPHIC DIVERSIFICATION (%
OF FUND'S NET ASSETS)
AS OF OCTOBER 31, 1999
United States 5.7%
Brazil 8.2%
Turkey 4.2%
Row: 1, Col: 1, Value: 8.199999999999999
Row: 1, Col: 2, Value: 8.199999999999999
Row: 1, Col: 3, Value: 9.699999999999999
Row: 1, Col: 4, Value: 5.0
Row: 1, Col: 5, Value: 9.6
Row: 1, Col: 6, Value: 26.0
Row: 1, Col: 7, Value: 11.6
Row: 1, Col: 8, Value: 11.8
Row: 1, Col: 9, Value: 4.2
Row: 1, Col: 10, Value: 5.7
India 8.2%
Taiwan 11.8%
Korea (South) 9.7%
Malaysia 5.0%
South Africa 11.6%
Mexico 9.6%
Other 26.0%
<TABLE>
<CAPTION>
<S> <C> <C>
ASSET ALLOCATION
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Stocks 97.4 94.3
Short-Term Investments and 2.6 5.7
Net Other Assets
TOP TEN STOCKS BY ISSUER AS
OF APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Samsung Electronics Co. Ltd. 6.1 2.9
(Korea (South), Electronics)
Telefonos de Mexico SA de CV 4.9 3.5
(Mexico, Telephone Services)
Taiwan Semiconductor 3.1 1.8
Manufacturing Co. Ltd.
(Taiwan, Electronics)
China Telecom (Hong Kong) 2.5 0.9
Ltd. (Hong Kong, Cellular)
Unified Energy Systems 2.3 0.9
(Russia, Electric Utility)
Hellenic Telecommunication 1.9 1.4
Organization SA (OTE)
(Greece, Electrical Equipment)
Wal-Mart de Mexico SA de CV 1.9 0.0
(Mexico, General Merchandise
Stores)
Grupo Televisa SA de CV 1.9 1.2
(Mexico, Broadcasting)
United Microelectronics Corp. 1.9 0.0
(Taiwan, Electronics)
Lukoil Oil Co. (Russia, Oil & 1.8 1.0
Gas)
28.3 13.6
TOP TEN MARKET SECTORS AS OF
APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Utilities 23.5 17.5
Technology 21.8 9.3
Finance 13.3 18.1
Basic Industries 11.6 13.5
Energy 5.0 3.4
Industrial Machinery & 4.3 3.0
Equipment
Media & Leisure 4.2 2.3
Nondurables 3.2 5.7
Retail & Wholesale 2.7 2.0
Precious Metals 2.0 4.2
</TABLE>
EMERGING MARKETS
INVESTMENTS APRIL 30, 2000 (UNAUDITED)
Showing Percentage of Net Assets
COMMON STOCKS - 96.9%
SHARES VALUE (NOTE 1)
ARGENTINA - 0.4%
PC Holdings SA sponsored ADR 119,159 $ 1,824,622
(a)
BRAZIL - 9.4%
Aracruz Celulose SA sponsored 54,500 1,018,469
ADR
Banco Bradesco SA (PN) (a) 545,024,548 4,015,970
Banco Itau SA 23,790,000 1,779,307
Brahma Cervejaria (Compagnie) 364,882 5,655,671
sponsored ADR
Companhia Vale do Rio Doce 291,000 7,206,482
(PN-A)
Embratel Participacoes SA ADR 226,200 5,089,500
Petrobras PN (Pfd. Reg.) 32,150,000 7,605,568
Tele Norte Leste 168,010 2,992,678
Participacoes SA ADR
Tele Sudeste Celular 40,900 1,748,475
Participacoes SA ADR
Telesp Celular Participacoes 173,400 7,651,275
SA ADR
Votorantim Celulose e Papel 93,761,000 2,794,649
SA (PN Reg.)
47,558,044
BRITISH VIRGIN ISLANDS - 0.0%
El Sitio, Inc. 3,600 38,700
CHILE - 1.1%
Compania Cervecerias Unidas 47,000 1,048,688
SA sponsored ADR
Compania de 50,800 939,800
Telecomunicaciones de Chile
SA sponsored ADR
Distribucion Y Servicio D&S 141,900 2,412,300
SA ADR
Embotelladora Andina 106,800 1,241,550
sponsored ADR Class A
5,642,338
CHINA - 0.2%
Huaneng Power International, 87,800 812,150
Inc. Series N sponsored ADR
CROATIA - 0.5%
Pliva D.D.:
GDR (c) 133,700 1,651,195
GDR (Reg.S) unit 78,800 973,180
2,624,375
CZECH REPUBLIC - 0.4%
Ceske Energeticke Zavody AS 683,900 1,987,624
(a)
EGYPT - 1.6%
Commercial International Bank 583,380 6,281,574
Ltd.
Lakah Group Sae (a) 741,903 1,815,760
8,097,334
GREECE - 2.1%
Commercial Bank of Greece 15,200 827,214
Hellenic Telecommunication 426,300 9,581,135
Organization SA (OTE)
10,408,349
SHARES VALUE (NOTE 1)
HONG KONG - 4.9%
China Everbright Ltd. 1,902,000 $ 1,343,031
China Resources Enterprise 1,568,000 1,972,808
Ltd.
China Telecom (Hong Kong) 1,730,000 12,688,469
Ltd. (a)
Citic Pacific Ltd. 530,000 2,429,164
Hutchison Whampoa Ltd. 231,000 3,366,050
New World Infrastructure Ltd. 2,531,800 2,697,865
(a)
24,497,387
HUNGARY - 1.7%
Matav RT sponsored ADR 162,800 5,667,475
OTP Bank Rt. 61,900 2,752,542
8,420,017
INDIA - 7.6%
Dr. Reddy's Laboratories Ltd. 56,300 1,663,849
Hughes Software Systems Ltd. 24,400 1,650,144
ICICI Ltd. 1,757,300 5,370,534
Infosys Technologies Ltd. 47,476 8,809,979
ITC Ltd. 500 6,529
Larsen & Toubro Ltd. 536,700 2,871,007
Pentamedia Graphics Ltd. 110,300 1,605,857
Pentamedia Graphics Ltd. New 110,000 1,601,489
Ranbaxy Laboratories Ltd. 89,100 1,259,239
Reliance Industries Ltd. 981,394 7,799,440
Tata Engineering & Locomotive 7,125 20,812
Co. Ltd.
Wipro Ltd. 73,945 5,642,266
38,301,145
INDONESIA - 0.6%
Sampoerna, Hanjaya Mandala (a) 2,204,000 3,191,282
ISRAEL - 4.0%
Bank Leumi le-Israel BM 3,705,308 8,053,721
Bezeq Israeli 1,014,700 5,385,676
Telecommunication Corp.
Ltd.
Orbotech Ltd. 71,800 6,120,950
VocalTec Communications Ltd. 38,900 690,475
(a)
20,250,822
KOREA (SOUTH) - 13.5%
Cheil Jedang Corp. 36,840 1,892,208
Dacom Corp. 17,820 2,585,285
Kookmin Bank 335,665 3,629,629
Korea Electric Power Corp. 257,800 7,549,900
Korea Telecom 83,000 5,669,206
Pohang Iron & Steel Co. Ltd. 51,700 4,117,894
Samsung Electro-Mechanics Co. 77,140 5,248,093
Samsung Electronics Co. Ltd. 112,995 30,546,072
SK Telecom Co. Ltd. 24,580 6,533,995
67,772,282
MALAYSIA - 4.2%
AMMB Holdings BHD 916,000 3,471,158
Amway (Malaysia) Holdings BHD 660,000 2,171,053
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
MALAYSIA - CONTINUED
Berjaya Sports Toto BHD 971,000 $ 2,031,434
Genting BHD 838,000 3,374,053
Malayan Banking BHD 1,128,000 4,690,105
Tanjong PLC 512,000 1,414,737
Technology Resources 3,172,000 4,056,821
Industries BHD
21,209,361
MEXICO - 11.8%
Alfa SA de CV 965,000 2,993,323
Grupo Financiero Bancomer SA 9,853,900 4,393,492
de CV Series A (a)
Grupo Televisa SA de CV 148,275 9,406,195
sponsored ADR (a)
Telefonos de Mexico SA de CV 421,900 24,812,994
Series L sponsored ADR
Tubos de Acero de Mexico SA 248,700 3,714,956
sponsored ADR
TV Azteca SA de CV sponsored 411,900 4,530,900
ADR
Wal-Mart de Mexico SA de CV 4,417,300 9,448,016
Series C (a)
59,299,876
PERU - 0.9%
Compania de Minas 141,400 2,439,150
Buenaventura SA Class B
sponsored ADR
Telefonica del Peru SA ADR 132,700 2,007,088
4,446,238
PHILIPPINES - 0.8%
Benpres Holdings Corp. (a) 11,116,000 1,561,652
Manila Electric Co. Class B 1,301,000 2,331,937
3,893,589
POLAND - 1.1%
KGHM Polska Miedz SA sonsored 200,900 2,882,915
GDR (Reg. S)
Polski Koncern Naftowy SA:
GDR (a)(c) 166,500 1,648,350
unit (a) 84,700 838,530
5,369,795
RUSSIA - 4.1%
Lukoil Oil Co. sponsored ADR 156,400 9,305,800
Unified Energy Systems 638,800 11,578,250
sponsored ADR
20,884,050
SINGAPORE - 0.4%
Singapore Telecommunications 1,543,000 2,224,307
Ltd.
SOUTH AFRICA - 7.4%
Boe Ltd. 3,276,300 2,615,250
Dimension Data Holdings Ltd. 1,072,260 7,027,330
(a)
Gold Fields Ltd. 680,490 2,204,828
SHARES VALUE (NOTE 1)
Impala Platinum Holdings Ltd. 131,100 $ 4,151,178
Imperial Holdings Ltd. 258,994 2,212,320
Johnnies Industrial Corp. 375,547 5,530,884
Ltd. (Reg.)
Nampak Ltd. 962,000 2,238,527
Sappi Ltd. 690,100 4,827,651
Sasol Ltd. 876,300 5,136,486
Standard Bank Investment 399,295 1,470,158
Corp. Ltd.
37,414,612
TAIWAN - 13.4%
Bank Sinopac 3,998,900 2,221,974
China Petrochemical 4,502,000 2,310,227
Development Corp. (a)
China Steel Corp. 2,127,000 1,508,609
China Trust Co. Ltd. (a) 3,760,720 3,109,862
Far Eastern Textile Ltd. 5,165,340 7,934,989
Hon Hai Precision Industries 708,400 6,830,462
Co. Ltd. (a)
Macronix International Co. 518,000 1,566,106
Ltd. (a)
Nan Ya Plastics Corp. 2,863,000 6,129,318
Phoenixtec Power Co. Ltd. 2,462,006 5,874,373
Siliconware Precision 1,641,000 3,727,717
Industries Co. Ltd.
Taiwan Semiconductor 2,416,240 15,558,074
Manufacturing Co. Ltd. (a)
United Microelectronics Corp. 2,767,000 9,360,500
WYSE Technology Taiwan Ltd. 542,000 1,169,211
67,301,422
THAILAND - 0.9%
Advanced Info Service PCL 269,200 3,152,506
(For. Reg.) (a)
PTT Exploration & Production 246,200 1,247,646
Public Co.Ltd. (For.Reg.)
4,400,152
TURKEY - 3.2%
Dogan Sirketler Grubu Holding 155,551,260 4,835,155
AS
Guney Biraciliu 62,517,350 3,426,326
Koytas Tekstil Sanayi ve 26,770,000 0
Ticaret AS (a)
Yapi ve Kredi Bankasi AS 249,779,118 7,968,453
16,229,934
VENEZUELA - 0.7%
Compania Anonima Nacional 129,800 3,764,200
Telefono de Venezuela
sponsored ADR
TOTAL COMMON STOCKS 487,864,007
(Cost $398,844,765)
CONVERTIBLE PREFERRED STOCKS
- 0.5%
PHILIPPINES - 0.0%
PDCP Development Bank 2,252,138 89,464
(non-vtg.) (a)
CONVERTIBLE PREFERRED STOCKS
- CONTINUED
SHARES VALUE (NOTE 1)
THAILAND - 0.5%
Siam Commercial Bank PLC 5.25% 2,780,800 $ 2,226,977
TOTAL CONVERTIBLE PREFERRED 2,316,441
STOCKS
(Cost $2,824,375)
CASH EQUIVALENTS - 3.0%
Central Cash Collateral Fund, 8,739,256 8,739,256
5.94% (b)
Taxable Central Cash Fund, 6,525,264 6,525,264
5.77% (b)
TOTAL CASH EQUIVALENTS 15,264,520
(Cost $15,264,520)
TOTAL INVESTMENT PORTFOLIO - 505,444,968
100.4%
(Cost $417,151,522)
NET OTHER ASSETS - (0.4)% (2,143,007)
NET ASSETS - 100% $ 503,301,961
LEGEND
(a) Non-income producing
(b) The rate quoted is the annualized seven-day yield of the fund at
period end.
(c) Security exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may be resold in
transactions exempt from registration, normally to qualified
institutional buyers. At the period end, the value of these securities
amounted to $3,299,545 or 0.7% of net assets.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $302,591,011 and $249,148,618, respectively.
The fund participated in the security lending program. At period end,
the value of securities loaned amounted to $8,781,329. The fund
received cash collateral of $8,739,256 which was invested in cash
equivalents.
INCOME TAX INFORMATION
At April 30, 2000, the aggregate cost of investment securities for
income tax purposes was $418,590,735. Net unrealized appreciation
aggregated $86,854,233, of which $128,840,014 related to appreciated
investment securities and $41,985,781 related to depreciated
investment securities.
At October 31, 1999, the fund had a capital loss carryforward of
approximately $425,756,000 of which $97,014,000, $19,326,000 and
$309,416,000 will expire on September 30, 2004, 2006 and 2007,
respectively.
The fund intends to elect to defer to its tax fiscal year ending
September 30, 2000 approximately $41,648,000 of losses recognized
during the period November 1, 1998 to September 30, 1999.
EMERGING MARKETS
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000 (UNAUDITED)
ASSETS
Investment in securities, at $ 505,444,968
value (cost $417,151,522) -
See accompanying schedule
Foreign currency held at 5,476,531
value (cost $5,497,566)
Receivable for investments 6,049,358
sold
Receivable for fund shares 415,653
sold
Dividends receivable 1,809,640
Interest receivable 49,004
Redemption fees receivable 1,434
Other receivables 38,959
TOTAL ASSETS 519,285,547
LIABILITIES
Payable to custodian bank $ 573
Payable for investments 4,332,427
purchased
Payable for fund shares 1,218,315
redeemed
Accrued management fee 324,150
Other payables and accrued 1,368,865
expenses
Collateral on securities 8,739,256
loaned, at value
TOTAL LIABILITIES 15,983,586
NET ASSETS $ 503,301,961
Net Assets consist of:
Paid in capital $ 883,805,691
Accumulated net investment (557,900)
loss
Accumulated undistributed net (468,207,836)
realized gain (loss) on
investments and foreign
currency transactions
Net unrealized appreciation 88,262,006
(depreciation) on
investments and assets and
liabilities in foreign
currencies
NET ASSETS, for 46,520,600 $ 503,301,961
shares outstanding
NET ASSET VALUE and $10.82
redemption price per share
($503,301,961 (divided by)
46,520,600 shares)
Maximum offering price per $11.15
share (100/97.00 of $10.82)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30,
2000 (UNAUDITED)
INVESTMENT INCOME $ 3,710,897
Dividends
Interest 514,730
Security lending 43,924
4,269,551
Less foreign taxes withheld (279,403)
TOTAL INCOME 3,990,148
EXPENSES
Management fee $ 1,976,892
Transfer agent fees 923,927
Accounting and security 156,107
lending fees
Custodian fees and expenses 516,715
Registration fees 49,247
Audit 21,773
Legal 10,193
Miscellaneous 79,184
Total expenses before 3,734,038
reductions
Expense reductions (50,658) 3,683,380
NET INVESTMENT INCOME 306,768
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities 5,604,994
Foreign currency transactions (368,688) 5,236,306
Change in net unrealized
appreciation (depreciation)
on:
Investment securities 51,817,617
Assets and liabilities in (10,500) 51,807,117
foreign currencies
NET GAIN (LOSS) 57,043,423
NET INCREASE (DECREASE) IN $ 57,350,191
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION Sales $ 301,888
charges paid to FDC
Sales charges - Retained by $ 301,888
FDC
Expense Reductions $ 37,005
Directed brokerage
arrangements
Custodian credits 2,598
Transfer agent credits 11,055
$ 50,658
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
INCREASE (DECREASE) IN NET SIX MONTHS ENDED APRIL 30, YEAR ENDED OCTOBER 31, 1999
ASSETS 2000 (UNAUDITED)
Operations Net investment $ 306,768 $ 3,080,027
income
Net realized gain (loss) 5,236,306 (46,961,437)
Change in net unrealized 51,807,117 141,289,128
appreciation (depreciation)
NET INCREASE (DECREASE) IN 57,350,191 97,407,718
NET ASSETS RESULTING FROM
OPERATIONS
Share transactions Net 194,183,911 186,390,654
proceeds from sales of shares
Cost of shares redeemed (151,224,591) (152,695,597)
NET INCREASE (DECREASE) IN 42,959,320 33,695,057
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
Redemption fees 600,340 580,285
TOTAL INCREASE (DECREASE) 100,909,851 131,683,060
IN NET ASSETS
NET ASSETS
Beginning of period 402,392,110 270,709,050
End of period (including $ 503,301,961 $ 402,392,110
accumulated net investment
loss of $557,900 and
$864,668, respectively)
OTHER INFORMATION
Shares
Sold 16,369,806 21,355,004
Redeemed (12,884,306) (18,514,233)
Net increase (decrease) 3,485,500 2,840,771
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SIX MONTHS ENDED APRIL 30, 2000 YEARS ENDED OCTOBER 31,
SELECTED PER-SHARE DATA (UNAUDITED) 1999 1998 1997 1996
Net asset value, beginning of $ 9.35 $ 6.74 $ 10.35 $ 16.61 $ 15.14
period
Income from Investment
Operations
Net investment income .01 D .07 D .09 D .15 D .12 D
Net realized and unrealized 1.45 2.53 (3.47) (6.17) 1.60
gain (loss)
Total from investment 1.46 2.60 (3.38) (6.02) 1.72
operations
Less Distributions
From net investment income - - (.08) (.13) (.18)
In excess of net investment - - (.15) (.12) (.09)
income
Total distributions - - (.23) (.25) (.27)
Redemption fees added to paid .01 .01 - .01 .02
in capital
Net asset value, end of period $ 10.82 $ 9.35 $ 6.74 $ 10.35 $ 16.61
TOTAL RETURN B, C 15.72% 38.72% (33.23)% (36.74)% 11.69%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 503,302 $ 402,392 $ 270,709 $ 499,168 $ 1,263,164
(000 omitted)
Ratio of expenses to average 1.39% A 1.45% 1.59% 1.36% 1.30%
net assets
Ratio of expenses to average 1.38% A, E 1.42% E 1.56% E 1.35% E 1.29% E
net assets after expense
reductions
Ratio of net investment .11% A .90% 1.01% .89% .74%
income to average net assets
Portfolio turnover rate 100% A 94% 87% 69% 77%
A ANNUALIZED
B THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
D NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES
OUTSTANDING DURING THE PERIOD.
E FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA 1995
Net asset value, beginning of $ 19.25
period
Income from Investment
Operations
Net investment income .05
Net realized and unrealized (4.13)
gain (loss)
Total from investment (4.08)
operations
Less Distributions
From net investment income (.04)
In excess of net investment -
income
Total distributions (.04)
Redemption fees added to paid .01
in capital
Net asset value, end of period $ 15.14
TOTAL RETURN B, C (21.17)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 1,095,583
(000 omitted)
Ratio of expenses to average 1.28%
net assets
Ratio of expenses to average 1.28%
net assets after expense
reductions
Ratio of net investment .46%
income to average net assets
Portfolio turnover rate 78%
A ANNUALIZED
B THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
D NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES
OUTSTANDING DURING THE PERIOD.
E FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
</TABLE>
EUROPE
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value). If Fidelity had not reimbursed certain fund
expenses, the past five year and past 10 year total returns would have
been lower. Total returns do not include the effect of the 3.00% sales
load which was eliminated as of March 1, 2000.
CUMULATIVE TOTAL RETURNS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PERIODS ENDED OCTOBER 31, 1994 PAST 6 MONTHS PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY EUROPE 16.13% 20.51% 148.44% 244.35%
MSCI Europe 8.43% 10.23% 139.19% 273.77%
European Region Funds Average 21.51% 25.29% 140.43% 206.71%
</TABLE>
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or 10 years. For example, if you had invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment
would be $1,050. You can compare the fund's returns to the performance
of the Morgan Stanley Capital International (MSCI) Europe Index - a
market capitalization-weighted index that is designed to represent the
performance of developed stock markets in Europe. As of April 30,
2000, the index included over 500 equity securities of companies
domiciled in 15 European countries. To measure how the fund's
performance stacked up against its peers, you can compare it to the
European region funds average, which reflects the performance of
mutual funds with similar objectives tracked by Lipper Inc. The past
six months average represents a peer group of 161 mutual funds. These
benchmarks include reinvested dividends and capital gains, if any, and
exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1994 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY EUROPE 20.51% 19.96% 13.16%
MSCI Europe 10.23% 19.06% 14.09%
European Region Funds Average 25.29% 18.91% 11.52%
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER 10 YEARS
Europe MS Europe (Net MA tax)
00301 MS002
1990/04/30 10000.00 10000.00
1990/05/31 10615.29 10813.86
1990/06/30 11057.35 11193.66
1990/07/31 11726.40 11665.04
1990/08/31 10328.55 10508.46
1990/09/30 9307.05 9270.87
1990/10/31 9725.21 10052.13
1990/11/30 9713.26 10153.14
1990/12/31 9580.79 10006.52
1991/01/31 9770.33 10343.22
1991/02/28 10363.40 11247.96
1991/03/31 9807.02 10493.10
1991/04/30 9782.56 10383.40
1991/05/31 9825.36 10689.69
1991/06/30 8963.27 9792.55
1991/07/31 9415.71 10470.29
1991/08/31 9605.25 10661.45
1991/09/30 9953.75 10981.86
1991/10/31 9739.76 10750.52
1991/11/30 9446.28 10497.45
1991/12/31 9979.37 11318.56
1992/01/31 10023.61 11315.30
1992/02/29 10143.69 11358.75
1992/03/31 9796.09 10961.23
1992/04/30 10440.73 11566.20
1992/05/31 10952.66 12224.39
1992/06/30 10851.54 11996.74
1992/07/31 10459.69 11568.13
1992/08/31 10491.29 11530.41
1992/09/30 10326.97 11339.71
1992/10/31 9555.93 10548.50
1992/11/30 9549.61 10543.35
1992/12/31 9727.54 10785.22
1993/01/31 9676.01 10803.33
1993/02/28 9733.99 10926.94
1993/03/31 10371.75 11489.05
1993/04/30 10713.18 11742.45
1993/05/31 10842.02 11868.77
1993/06/30 10539.25 11695.38
1993/07/31 10545.69 11735.53
1993/08/31 11402.49 12765.33
1993/09/30 11389.60 12725.68
1993/10/31 11872.76 13255.83
1993/11/30 11640.84 12969.69
1993/12/31 12370.01 13943.42
1994/01/31 13262.83 14653.50
1994/02/28 12952.28 14134.56
1994/03/31 12589.98 13734.51
1994/04/30 12952.28 14303.24
1994/05/31 12454.12 13695.23
1994/06/30 12305.31 13551.44
1994/07/31 12868.18 14261.67
1994/08/31 13275.77 14714.01
1994/09/30 13094.61 14130.55
1994/10/31 13702.76 14746.13
1994/11/30 13191.66 14181.29
1994/12/31 13143.89 14261.90
1995/01/31 12861.30 14150.24
1995/02/28 13091.32 14470.85
1995/03/31 13406.77 15142.37
1995/04/30 13860.23 15626.62
1995/05/31 14136.25 15946.57
1995/06/30 14537.14 16096.90
1995/07/31 15187.77 16935.94
1995/08/31 14898.60 16281.23
1995/09/30 15555.79 16773.06
1995/10/31 15450.64 16693.84
1995/11/30 15352.06 16812.54
1995/12/31 15619.55 17345.34
1996/01/31 15667.47 17458.73
1996/02/29 16242.42 17776.78
1996/03/31 16639.41 17989.35
1996/04/30 16892.66 18119.51
1996/05/31 17378.63 18259.52
1996/06/30 17563.44 18460.57
1996/07/31 17228.05 18229.34
1996/08/31 17809.85 18770.28
1996/09/30 18111.01 19165.23
1996/10/31 18562.76 19610.17
1996/11/30 19274.61 20603.90
1996/12/31 19622.44 21003.01
1997/01/31 19541.32 21065.39
1997/02/28 19961.65 21349.77
1997/03/31 20337.73 22045.77
1997/04/30 20263.98 21941.72
1997/05/31 21207.87 22884.56
1997/06/30 22240.24 24035.19
1997/07/31 22940.78 25165.81
1997/08/31 21871.53 23732.37
1997/09/30 23899.41 26038.44
1997/10/31 22896.53 24767.50
1997/11/30 23346.35 25154.12
1997/12/31 24113.46 26079.29
1998/01/31 25039.67 27170.97
1998/02/28 26755.15 29301.44
1998/03/31 28688.10 31394.74
1998/04/30 29396.84 32010.71
1998/05/31 29662.62 32665.97
1998/06/30 29968.67 33030.85
1998/07/31 30798.23 33690.47
1998/08/31 25192.69 29459.97
1998/09/30 24765.83 28289.52
1998/10/31 26433.00 30561.45
1998/11/30 27947.14 32194.66
1998/12/31 29122.06 33609.61
1999/01/31 29522.19 33400.23
1999/02/28 28365.31 32559.54
1999/03/31 28400.10 32922.25
1999/04/30 28574.07 33909.26
1999/05/31 27191.03 32286.71
1999/06/30 28243.53 32837.84
1999/07/31 28252.23 33149.15
1999/08/31 28408.80 33492.57
1999/09/30 28400.10 33241.04
1999/10/31 29652.66 34470.97
1999/11/30 31105.28 35407.20
1999/12/31 34564.07 39042.46
2000/01/31 33364.89 36268.10
2000/02/29 36353.62 38166.73
2000/03/31 36999.33 39096.09
2000/04/28 34434.93 37377.43
IMATRL PRASUN SHR__CHT 20000430 20000524 092429 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was
invested in Fidelity Europe Fund on April 30, 1990. As the chart
shows, by April 30, 2000, the value of the investment would have grown
to $34,435 - a 244.35% increase on the initial investment. For
comparison, look at how the Morgan Stanley Capital International
Europe Index did over the same period. With dividends and capital
gains, if any, reinvested, the same $10,000 would have grown to
$37,377 - a 273.77% increase.
UNDERSTANDING PERFORMANCE
Many markets around the globe offer the
potential for significant growth over time; however,
investing in foreign markets means assuming greater
risks than investing in the United States. Factors like
changes in a country's financial markets, its local
political and economic climate, and the fluctuating
value of its currency create these risks. For these
reasons an international fund's performance may
be more volatile than a fund that invests exclusively
in the United States. Past performance is no
guarantee of future results and you may have a
gain or loss when you sell your shares.
(checkmark)
EUROPE
FUND TALK: THE MANAGER'S OVERVIEW
(PORTFOLIO MANAGER PHOTO)
An interview with
Thierry Serero,
Portfolio Manager of Fidelity Europe Fund
Q. HOW DID THE FUND PERFORM, THIERRY?
A. For the six months ending April 30, 2000, the fund returned 16.13%,
while the Morgan Stanley Capital International (MSCI) Europe Index
returned 8.43%. Meanwhile, the European region funds average, as
tracked by Lipper Inc., returned 21.51%. For the 12-month period, the
fund gained 20.51%, outperforming the MSCI index's return of 10.23%.
The Lipper average return was 25.29% for the 12-month period.
Q. WHAT FACTORS INFLUENCED THE PERFORMANCE OF EUROPEAN STOCK MARKETS
DURING THE PAST SIX MONTHS?
A. During the course of the period, stock markets rose significantly
in continental Europe but declined in the U.K. when expressed in U.S.
dollars. In continental Europe, share prices of technology, media and
telecommunications (TMT) stocks were the main reason behind the market
advance. The strongest gains were seen in Finland and Sweden, markets
that are dominated by growth-oriented technology companies Nokia and
Ericsson, respectively. Share prices of companies in more defensive
sectors, however, moved sideways or declined. In the U.K., a smaller
proportion of the market than in continental Europe is made up of TMT
stocks. Therefore, its overall market declined during the past six
months. In general, returns in Europe for U.S.-based investors were
adversely affected by the weakening of the euro and sterling. These
currencies depreciated by 15% and 6%, respectively, against the
dollar. Economic growth strengthened during the period, so much so
that central banks raised interest rates four times in the eurozone -
the 11 countries that adopted Europe's single currency - and three
times in the U.K. to counter building inflationary pressures.
Q. THE FUND OUTPERFORMED ITS BENCHMARK INDEX BUT TRAILED ITS PEER
GROUP. WHY?
A. Compared with the benchmark index, the fund benefited from its bias
toward growth stocks, which investors preferred for much of the
period. My investment style favors growth rather than value and this
contributed significantly to performance. Relative to the Lipper
average, performance within the peer group has diverged unusually
widely between the best and the worst performers depending on how the
funds were positioned in terms of investment in new economy stocks.
For much of the period, sector weightings rather than stock picking
worked because of the undifferentiated buying by investors within the
preferred TMT sectors.
Q. WHICH FUND HOLDINGS PERFORMED PARTICULARLY WELL?
A. Shares in manufacturers of mobile phone equipment, such as Nokia
and Ericsson, contributed considerably to performance. Other strong
stocks included Kudelski, a maker of a card access system for pay TV;
Dassault Systems, a developer of software to design cars and planes;
and telecommunications companies Bouygues, Mannesmann and Telefonica,
which benefited from the rapid expansion of mobile and data traffic.
The fund no longer held Bouygues or Telefonica at the end of the
period.
Q. WERE THERE ANY DISAPPOINTMENTS?
A. The fund's second-largest holding, U.K. mobile phone operator
Vodafone AirTouch, detracted from performance. Vodafone's share price
was affected by concerns about the ongoing integration of its takeover
of Mannesmann, and about the high bids Vodafone and other
telecommunications companies put in for the U.K.'s third-generation
mobile phone licenses. Royal Bank of Scotland was another
disappointment. After its stock rose on speculation that it would be a
takeover target, it surprised the market by acquiring National
Westminster Bank, and Royal Bank's stock price quickly shed its gains.
Q. WHAT IS YOUR OUTLOOK FOR THE EUROPEAN MARKET?
A. Like other stock markets, European markets have been volatile since
mid-March. The initial catalyst to this volatility was the decline of
the U.S. stock market. Shares in technology, media and
telecommunications companies have been most affected by the recent
dips in the market. One result of this volatility is that investors
appear to be again focusing on the underlying strength of businesses,
which I view as positive. The economic background in Europe remains
very favorable. Growth is accelerating and inflation remains low.
Although interest rates are widely expected to rise in the eurozone,
if not in the U.K., there seems little need for significant increases.
The acceleration in economic growth should improve the outlook for
profit growth as should continued corporate restructuring.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET OR OTHER CONDITIONS. FOR MORE INFORMATION, SEE PAGE 3.
FUND FACTS
GOAL: long-term growth of capital by investing
mainly in equity securities of European issuers
FUND NUMBER: 301
TRADING SYMBOL: FIEUX
START DATE: October 1, 1986
SIZE: as of April 30, 2000, more than
$1.5 billion
MANAGER: Thierry Serero, since 1998;
manager, several funds for Fidelity
International Limited, since 1994; research
analyst, Fidelity International Services Limited,
1991-1994; joined Fidelity in 1991
(checkmark)
EUROPE
INVESTMENT CHANGES
AS OF APRIL 30, 2000
United States 5.8%
Finland 5.4%
Row: 1, Col: 1, Value: 5.4
Row: 1, Col: 2, Value: 16.0
Row: 1, Col: 3, Value: 10.7
Row: 1, Col: 4, Value: 4.2
Row: 1, Col: 5, Value: 3.2
Row: 1, Col: 6, Value: 6.8
Row: 1, Col: 7, Value: 6.4
Row: 1, Col: 8, Value: 8.800000000000001
Row: 1, Col: 9, Value: 32.7
Row: 1, Col: 10, Value: 5.8
United Kingdom 32.7%
France 16.0%
Germany 10.7%
Italy 4.2%
Netherlands 3.2%
Switzerland 8.8%
Other 6.8%
Sweden 6.4%
GEOGRAPHIC DIVERSIFICATION (%
OF FUND'S NET ASSETS)
AS OF OCTOBER 31, 1999
United States 2.4%
Finland 4.7%
Row: 1, Col: 1, Value: 4.7
Row: 1, Col: 2, Value: 19.7
Row: 1, Col: 3, Value: 15.9
Row: 1, Col: 4, Value: 5.9
Row: 1, Col: 5, Value: 5.6
Row: 1, Col: 6, Value: 3.7
Row: 1, Col: 7, Value: 2.9
Row: 1, Col: 8, Value: 6.9
Row: 1, Col: 9, Value: 32.3
Row: 1, Col: 10, Value: 2.4
United Kingdom 32.3%
France 19.7%
Germany 15.9%
Switzerland 6.9%
Netherlands 5.9%
Sweden 2.9%
Other 5.6%
Spain 3.7%
<TABLE>
<CAPTION>
<S> <C> <C>
ASSET ALLOCATION
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Stocks 92.8 97.5
Bonds 4.1 2.5
Short-Term Investments and 3.1 0.0
Net Other Assets
TOP TEN STOCKS BY ISSUER AS
OF APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Nokia AB (Finland, 4.5 3.5
Communications Equipment)
Vodafone AirTouch PLC 4.2 5.2
(United Kingdom, Cellular)
BP Amoco PLC (United 3.4 2.9
Kingdom, Oil & Gas)
Marschollek Lautenschlaeger 3.2 1.7
und Partner AG (Germany,
Insurance)
Munich Reinsurance AG 3.0 1.9
(Germany, Insurance)
TotalFinaElf SA (France, Oil 3.0 1.7
& Gas)
Shell Transport & Trading Co. 2.8 0.0
PLC (United Kingdom, Oil &
Gas)
Telefonaktiebolaget LM 2.7 2.0
Ericsson (Sweden,
Communications Equipment)
Kudelski SA (Switzerland, 2.0 1.2
Electronic Instruments)
British Land Co. PLC (United 1.9 0.7
Kingdom, Real Estate)
30.7 20.8
TOP TEN MARKET SECTORS AS OF
APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Finance 22.0 21.2
Technology 19.8 11.6
Utilities 13.6 15.8
Energy 9.8 4.6
Basic Industries 4.9 4.2
Media & Leisure 4.9 1.4
Construction & Real Estate 4.7 4.0
Health 4.5 12.1
Services 3.6 6.5
Retail & Wholesale 3.4 7.7
</TABLE>
EUROPE
INVESTMENTS APRIL 30, 2000 (UNAUDITED)
Showing Percentage of Net Assets
COMMON STOCKS - 88.5%
SHARES VALUE (NOTE 1)
BELGIUM - 0.6%
GIB Holdings Ltd. 96,600 $ 2,527,803
Telinfo SA 38,761 4,380,760
Telinfo SA (strip VVPR) 28,500 260
Ubizen NV (a)(e) 15,700 2,186,532
9,095,355
DENMARK - 0.6%
Novo-Nordisk AS (B Shares) 72,270 9,706,238
FINLAND - 5.4%
Comptel Oyj 240,500 5,449,405
Metsa-Serla Oyj Class B Free 368,750 3,135,787
Shares
Nokia AB 1,211,660 68,913,157
UPM-Kymmene Corp. 187,880 4,880,432
82,378,781
FRANCE - 11.9%
Activcard SA (a) 85,800 2,316,600
Aventis SA (France) 449,850 25,304,063
Banque Nationale de Paris 276,839 22,431,684
(BNP)
Business Objects SA sponsored 30,000 2,936,250
ADR (a)
CEGID SA 11,926 2,331,605
Dassault Systemes SA 213,240 16,442,653
Elior (a) 567,700 6,193,639
Neopost SA (a) 382,664 10,149,472
Rhodia SA 593,149 11,028,763
Technip SA 71,700 8,201,546
TotalFinaElf SA Class B 300,644 45,472,404
TRANSGENE SA sponsored ADR 366,500 7,146,750
(a)(d)
Unibail 166,470 21,090,342
181,045,771
GERMANY - 7.5%
Aachener & Muenchener 58,964 3,815,734
Beteiligungs AG (AMB)
ACG AG 12,130 2,929,368
Bewag AG Series A 267,160 2,488,600
Brokat Infosystems AG (a) 113,280 13,794,074
Intershop Communication AG (a) 17,897 7,976,187
Kali Und Salz Beteiligungs AG 191,210 2,560,149
Karstadt Quelle AG 322,040 9,833,032
Munich Reinsurance AG (Reg.) 155,145 45,603,729
NSE Software AG 348,190 6,442,363
SGL Carbon AG (a) 89,300 6,917,547
Thyssen Krupp AG 525,030 11,054,242
113,415,025
GREECE - 0.1%
Antenna TV SA sponsored ADR 67,500 1,303,594
(a)
IRELAND - 0.7%
Irish Life & Permanent PLC 928,247 7,699,062
SHARES VALUE (NOTE 1)
IWP International PLC 568,270 $ 706,246
(United Kingdom) (Reg.)
Riverdeep Group PLC sponsored 79,500 1,818,563
ADR
10,223,871
ITALY - 3.1%
Luxottica Group Spa sponsored 589,000 14,062,375
ADR
Saipem Spa 1,564,800 7,743,040
San Paolo Imi Spa 813,810 11,452,576
Unicredito Italiano Spa 3,305,400 13,578,270
46,836,261
LUXEMBOURG - 1.3%
Audiofina 87,850 10,849,605
Societe Europeen Des 45,740 6,967,395
Satellite unit
Stolt Comex Seaway SA (a) 175,700 2,082,976
19,899,976
NETHERLANDS - 3.2%
Buhrmann NV 322,700 8,338,441
Equant NV (a) 257,608 19,992,949
Heineken Holding NV (A Shares) 326,450 11,023,963
IHC Caland NV 130,000 5,272,738
United Pan-Europe 31,380 1,144,910
Communications NV (a)
Vendex KBB NV 145,000 2,240,116
48,013,117
NORWAY - 0.5%
DNB Holding ASA 2,180,010 7,655,874
Kvaerner ASA (B Shares) (a) 61,620 620,256
8,276,130
POLAND - 0.2%
Agora SA unit (a) 123,330 2,805,758
SPAIN - 2.8%
Banco Santander Central 1,410,150 14,742,176
Hispano SA
Centros Comerciales 351,130 5,472,640
Continente SA
Centros Comerciales Pryca SA 441,860 5,360,380
Grupo Acciona SA 71,062 2,882,241
NH Hoteles SA (a) 730,710 8,225,170
Prosegur Comp Securidad SA 517,709 6,049,320
42,731,927
SWEDEN - 6.4%
Industri-Matematik 611,380 4,126,815
International Corp. (a)
Investor AB (B Shares) 992,520 14,006,084
Nobel Biocare AB 264,100 7,098,826
Nordic Baltic Holding AB 1,482,800 9,382,918
OM Gruppen AB 57,700 2,403,951
Scandic Hotels AB 155,400 1,653,414
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
SWEDEN - CONTINUED
Securitas AB (B Shares) 624,681 $ 16,231,296
Telefonaktiebolaget LM 467,000 41,300,313
Ericsson (B Shares)
96,203,617
SWITZERLAND - 8.8%
Baloise Holdings AG 18,971 15,869,865
Credit Suisse Group (Reg.) 123,900 22,451,920
Fantastic Corp. (a) 201,870 3,698,288
Geberit International AG 4,070 1,323,519
Kudelski SA (a) 2,976 30,712,182
Lindt & Spruengli AG 3,935 9,497,565
Logitech International SA (a) 4,300 2,846,655
Miracle Holding AG (a) 8,028 2,405,131
Novartis AG (Reg.) 17,221 24,133,443
Richemont Compagnie Financier 5,829 14,207,976
Class A unit
Tecan AG 7,097 6,135,045
133,281,589
UNITED KINGDOM - 32.7%
Airtours PLC 1,749,470 9,199,759
Allied Zurich PLC 1,845,286 18,274,905
Amdocs Ltd. (a) 205,200 13,889,475
Axis Shield PLC (a) 383,983 3,931,051
Babcock International Group 2,731,117 3,479,088
PLC
BP Amoco PLC 6,041,702 51,354,505
British Land Co. PLC 4,296,211 28,548,736
Cable & Wireless PLC 1,414,700 23,361,938
Capita Group PLC 556,145 14,229,607
Carlton Communications PLC 1,240,150 14,911,675
Compass Group PLC 800,200 11,324,738
E-Capital Investments PLC (a) 8,303,450 1,289,941
Energis PLC (a) 428,820 21,110,987
Expro International Group PLC 558,000 3,294,041
Jazztel PLC sponsored ADR 162,000 8,424,000
Johnson Matthey PLC 739,670 9,474,143
Lloyds TSB Group PLC 852,600 8,317,949
Lonmin PLC 398,630 4,056,230
Misys PLC 859,916 9,791,997
NDS Group PLC sponsored ADR 270,700 15,294,550
Prudential Corp. PLC 1,088,393 16,671,471
Royal & Sun Alliance 1,805,036 10,052,782
Insurance Group PLC
Royal Bank of Scotland Group 1,837,995 28,453,316
PLC
Safeway PLC 5,522,770 18,574,884
SHARES VALUE (NOTE 1)
Scottish & Southern Energy PLC 1,109,280 $ 9,331,488
Serco Group PLC 2,068,302 14,940,948
Shell Transport & Trading Co. 5,295,790 42,586,952
PLC (Reg.)
Stagecoach Holdings PLC 8,127,201 7,954,132
The Go-Ahead Group PLC 385,144 2,671,504
United News & Media PLC 515,820 6,546,836
Vodafone AirTouch PLC 13,566,627 63,763,222
495,106,850
UNITED STATES OF AMERICA - 2.7%
Infonet Services Corp. Class B 1,307,670 22,066,931
LHS Group, Inc. (a) 10,750 427,313
SCM Microsystems, Inc. (a) 40,000 3,312,209
Synthes-Stratec, Inc. 36,731 15,683,859
41,490,312
TOTAL COMMON STOCKS 1,341,814,172
(Cost $1,142,103,432)
NONCONVERTIBLE PREFERRED
STOCKS - 4.3%
GERMANY - 3.2%
Marschollek Lautenschlaeger 90,082 47,986,407
und Partner AG
ITALY - 1.1%
Telecom Italia Mobile Spa 884,150 3,444,239
Telecom Italia Spa Risp 2,115,900 13,277,978
16,722,217
TOTAL NONCONVERTIBLE 64,708,624
PREFERRED STOCKS
(Cost $34,499,545)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
CORPORATE BONDS - 4.1%
MOODY'S RATINGS PRINCIPAL AMOUNT
CONVERTIBLE BONDS - 3.7%
FRANCE - 3.7%
France Telecom SA 2% 1/1/04 Aa1 EUR 18,848,435 36,579,001
Vivendi SA 1.25% 1/1/04 Baa2 EUR 16,824,120 19,031,987
55,610,988
NONCONVERTIBLE BONDS - 0.4%
FRANCE - 0.4%
Eurotunnel Finance Ltd. euro:
0% 4/30/40 (c) - EUR 1,355 1,753,721
0% 4/30/40 (c) - EUR 3,885 5,028,196
6,781,917
TOTAL CORPORATE BONDS 62,392,905
(Cost $60,297,271)
</TABLE>
CASH EQUIVALENTS - 10.3%
SHARES VALUE (NOTE 1)
Central Cash Collateral Fund, 65,584,187 $ 65,584,187
5.94% (b)
Taxable Central Cash Fund, 89,853,681 89,853,681
5.77% (b)
TOTAL CASH EQUIVALENTS 155,437,868
(Cost $155,437,868)
TOTAL INVESTMENT PORTFOLIO - 1,624,353,569
107.2%
(Cost $1,392,338,116)
NET OTHER ASSETS - (7.2)% (108,811,884)
NET ASSETS - 100% $ 1,515,541,685
CURRENCY ABBREVIATIONS
EUR - European Monetary Unit
LEGEND
(a) Non-income producing
(b) The rate quoted is the annualized seven-day yield of the fund at
period end.
(c) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(d) Affiliated company
(e) Security exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may be resold in transactions
exempt from registration, normally to qualified institutional buyers.
At the period end, the value of these securities amounted to
$2,186,532 or 0.1% of net assets.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $1,243,619,638 and $1,300,256,824, respectively.
The fund participated in the security lending program. At period end,
the value of securities loaned amounted to $67,171,380. The fund
received cash collateral of $65,584,187 which was invested in cash
equivalents and U.S. Treasury obligations valued at $5,424,034.
The fund participated in the interfund lending program as a borrower.
The average daily loan balance during the period for which loans were
outstanding amounted to $13,404,052. The weighted average interest
rate was 5.79%. Interest expense includes $124,423 paid under the
interfund lending program.
The fund participated in the bank borrowing program. The average daily
loan balance during the period for which loans were outstanding
amounted to $5,164,400. The weighted average interest rate was 6.14%.
Interest expense includes $8,868 paid under the bank borrowing
program.
Transactions during the period with companies which are or were
affiliates are as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
AFFILIATE PURCHASE COST SALES COST DIVIDEND INCOME VALUE
TRANSGENE SA sponsored ADR $ - $ 642,421 $ - $7,146,750
</TABLE>
INCOME TAX INFORMATION
At April 30, 2000, the aggregate cost of investment securities for
income tax purposes was $1,397,842,920. Net unrealized appreciation
aggregated $226,510,649, of which $342,141,834 related to appreciated
investment securities and $115,631,185 related to depreciated
investment securities.
EUROPE
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000 (UNAUDITED)
ASSETS
Investment in securities, at $ 1,624,353,569
value (cost $1,392,338,116)
- See accompanying schedule
Foreign currency held at 350,748
value (cost $354,860)
Receivable for investments 73,900,343
sold
Receivable for fund shares 1,619,508
sold
Dividends receivable 4,187,798
Interest receivable 352,118
Redemption fees receivable 934
Other receivables 185,313
TOTAL ASSETS 1,704,950,331
LIABILITIES
Payable for investments $ 118,735,988
purchased
Payable for fund shares 3,630,409
redeemed
Accrued management fee 919,318
Other payables and accrued 538,744
expenses
Collateral on securities 65,584,187
loaned, at value
TOTAL LIABILITIES 189,408,646
NET ASSETS $ 1,515,541,685
Net Assets consist of:
Paid in capital $ 1,081,517,573
Undistributed net investment 391,073
income
Accumulated undistributed net 201,935,925
realized gain (loss) on
investments and foreign
currency transactions
Net unrealized appreciation 231,697,114
(depreciation) on
investments and assets and
liabilities in foreign
currencies
NET ASSETS, for 40,599,816 $ 1,515,541,685
shares outstanding
NET ASSET VALUE, offering $37.33
price and redemption price
per share ($1,515,541,685
(divided by) 40,599,816
shares)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30,
2000 (UNAUDITED)
INVESTMENT INCOME $ 8,100,863
Dividends
Interest 708,634
Security lending 304,793
9,114,290
Less foreign taxes withheld (944,909)
TOTAL INCOME 8,169,381
EXPENSES
Management fee Basic fee $ 5,416,258
Performance adjustment (282,247)
Transfer agent fees 1,760,951
Accounting and security 365,616
lending fees
Non-interested trustees' 3,342
compensation
Custodian fees and expenses 380,975
Registration fees 68,898
Audit 20,202
Legal 20,725
Interest 133,291
Miscellaneous 1,453
Total expenses before 7,889,464
reductions
Expense reductions (228,982) 7,660,482
NET INVESTMENT INCOME 508,899
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities 205,214,187
(including realized gain
(loss) of $420,893 on
sales of investments in
affiliated issuers)
Foreign currency transactions (10,483) 205,203,704
Change in net unrealized
appreciation (depreciation)
on:
Investment securities 2,381,050
Assets and liabilities in (294,716) 2,086,334
foreign currencies
NET GAIN (LOSS) 207,290,038
NET INCREASE (DECREASE) IN $ 207,798,937
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION Sales $ 325,135
charges paid to FDC
Sales charges - Retained by $ 324,575
FDC
Deferred sales charges $ 30,124
withheld by FDC
Expense Reductions $ 190,326
Directed brokerage
arrangements
Custodian credits 5,217
Transfer agent credits 33,439
$ 228,982
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
INCREASE (DECREASE) IN NET SIX MONTHS ENDED APRIL 30, YEAR ENDED OCTOBER 31, 1999
ASSETS 2000 (UNAUDITED)
Operations Net investment $ 508,899 $ 11,174,103
income
Net realized gain (loss) 205,203,704 103,624,552
Change in net unrealized 2,086,334 59,284,576
appreciation (depreciation)
NET INCREASE (DECREASE) IN 207,798,937 174,083,231
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (6,915,252) (13,415,761)
From net investment income
From net realized gain (74,505,585) (107,821,453)
TOTAL DISTRIBUTIONS (81,420,837) (121,237,214)
Share transactions Net 284,081,927 350,466,714
proceeds from sales of shares
Reinvestment of distributions 79,435,011 118,737,898
Cost of shares redeemed (291,941,421) (791,339,602)
NET INCREASE (DECREASE) IN 71,575,517 (322,134,990)
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
Redemption fees 185,934 333,409
TOTAL INCREASE (DECREASE) 198,139,551 (268,955,564)
IN NET ASSETS
NET ASSETS
Beginning of period 1,317,402,134 1,586,357,698
End of period (including $ 1,515,541,685 $ 1,317,402,134
undistributed net investment
income of $391,073 and
$9,182,220, respectively)
OTHER INFORMATION
Shares
Sold 7,472,627 10,550,858
Issued in reinvestment of 2,266,326 3,755,163
distributions
Redeemed (7,780,242) (23,998,640)
Net increase (decrease) 1,958,711 (9,692,619)
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SIX MONTHS ENDED APRIL 30, 2000 YEARS ENDED OCTOBER 31,
SELECTED PER-SHARE DATA (UNAUDITED) 1999 1998 1997 1996
Net asset value, beginning of $ 34.09 $ 32.82 $ 31.05 $ 27.12 $ 23.51
period
Income from Investment
Operations
Net investment income .01 D .25 D .39 D .44 D .30 D
Net realized and unrealized 5.35 3.54 4.10 5.44 4.23
gain (loss)
Total from investment 5.36 3.79 4.49 5.88 4.53
operations
Less Distributions
From net investment income (.18) (.28) (.39) (.24) (.12)
From net realized gain (1.94) (2.25) (2.35) (1.73) (.81)
Total distributions (2.12) (2.53) (2.74) (1.97) (.93)
Redemption fees added to paid - .01 .02 .02 .01
in capital
Net asset value, end of period $ 37.33 $ 34.09 $ 32.82 $ 31.05 $ 27.12
TOTAL RETURN B, C 16.13% 12.18% 15.45% 23.35% 20.14%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 1,515,542 $ 1,317,402 $ 1,586,358 $ 916,108 $ 691,762
(000 omitted)
Ratio of expenses to average 1.07% A .96% 1.10% 1.19% 1.27%
net assets
Ratio of expenses to average 1.04% A, F .89% F 1.09% F 1.18% F 1.27%
net assets after expense
reductions
Ratio of net investment .07% A .76% 1.15% 1.53% 1.20%
income to average net assets
Portfolio turnover rate 175% A 106% 114% 57% 45%
A ANNUALIZED
B THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT
INCLUDE THE FORMER ONE TIME
SALES CHARGE AND FOR PERIODS
OF LESS THAN ONE YEAR ARE
NOT ANNUALIZED.
D NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES
OUTSTANDING DURING THE PERIOD.
E FMR AGREED TO REIMBURSE A
PORTION OF THE FUND'S
EXPENSES DURING THE PERIOD.
WITHOUT THIS REIMBURSEMENT,
THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
F FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA 1995
Net asset value, beginning of $ 21.18
period
Income from Investment
Operations
Net investment income .27
Net realized and unrealized 2.37
gain (loss)
Total from investment 2.64
operations
Less Distributions
From net investment income (.20)
From net realized gain (.11)
Total distributions (.31)
Redemption fees added to paid -
in capital
Net asset value, end of period $ 23.51
TOTAL RETURN B, C 12.76%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 492,867
(000 omitted)
Ratio of expenses to average 1.18% E
net assets
Ratio of expenses to average 1.18%
net assets after expense
reductions
Ratio of net investment 1.12%
income to average net assets
Portfolio turnover rate 38%
A ANNUALIZED
B THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT
INCLUDE THE FORMER ONE TIME
SALES CHARGE AND FOR PERIODS
OF LESS THAN ONE YEAR ARE
NOT ANNUALIZED.
D NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES
OUTSTANDING DURING THE PERIOD.
E FMR AGREED TO REIMBURSE A
PORTION OF THE FUND'S
EXPENSES DURING THE PERIOD.
WITHOUT THIS REIMBURSEMENT,
THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
F FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
</TABLE>
EUROPE CAPITAL APPRECIATION
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value). Total returns do not include the effect of the
3.00% sales load which was eliminated as of March 1, 2000.
CUMULATIVE TOTAL RETURNS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PERIODS ENDED OCTOBER 31, 1994 PAST 6 MONTHS PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
FIDELITY EUROPE CAPITAL APP 13.89% 17.87% 140.08% 179.69%
MSCI Europe 8.43% 10.23% 139.19% 170.40%
European Region Funds Average 21.51% 25.29% 140.43% n/a
</TABLE>
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or since the fund started on December 21, 1993. For example, if
you had invested $1,000 in a fund that had a 5% return over the past
year, the value of your investment would be $1,050. You can compare
the fund's returns to the performance of the Morgan Stanley Capital
International (MSCI) Europe Index - a market capitalization-weighted
index that is designed to represent the performance of developed stock
markets in Europe. As of April 30, 2000, the index included over 500
equity securities of companies domiciled in 15 European countries. To
measure how the fund's performance stacked up against its peers, you
can compare it to the European region funds average, which reflects
the performance of mutual funds with similar objectives tracked by
Lipper Inc. The past six months average represents a peer group of 161
mutual funds. These benchmarks include reinvested dividends and
capital gains, if any, and exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1994 PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
FIDELITY EUROPE CAPITAL APP 17.87% 19.14% 17.55%
MSCI Europe 10.23% 19.06% 16.92%
European Region Funds Average 25.29% 18.91% n/a
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
Europe Cap. Appreciation MS Europe (Net MA tax)
00341 MS002
1993/12/21 10000.00 10000.00
1993/12/31 10030.00 10087.27
1994/01/31 11490.00 10600.97
1994/02/28 11000.00 10225.54
1994/03/31 11120.00 9936.13
1994/04/30 11590.00 10347.57
1994/05/31 11160.00 9907.72
1994/06/30 10930.00 9803.69
1994/07/31 11490.00 10317.50
1994/08/31 11690.00 10644.74
1994/09/30 11280.00 10222.65
1994/10/31 11350.00 10667.98
1994/11/30 10860.00 10259.35
1994/12/31 10720.00 10317.67
1995/01/31 10590.00 10236.89
1995/02/28 10890.00 10468.83
1995/03/31 11120.00 10954.64
1995/04/30 11650.00 11304.96
1995/05/31 11830.00 11536.43
1995/06/30 12000.00 11645.19
1995/07/31 12620.00 12252.18
1995/08/31 12100.00 11778.54
1995/09/30 12460.00 12134.35
1995/10/31 12080.00 12077.04
1995/11/30 12010.00 12162.91
1995/12/31 12294.87 12548.36
1996/01/31 12376.43 12630.39
1996/02/29 12692.46 12860.48
1996/03/31 12896.36 13014.26
1996/04/30 13263.37 13108.42
1996/05/31 13559.02 13209.72
1996/06/30 13630.38 13355.17
1996/07/31 13355.12 13187.88
1996/08/31 13854.67 13579.22
1996/09/30 14160.51 13864.95
1996/10/31 14344.01 14186.83
1996/11/30 15251.35 14905.74
1996/12/31 15478.34 15194.47
1997/01/31 15865.59 15239.60
1997/02/28 16047.82 15445.33
1997/03/31 16332.56 15948.85
1997/04/30 16412.28 15873.58
1997/05/31 17152.60 16555.66
1997/06/30 18200.44 17388.08
1997/07/31 19031.87 18206.02
1997/08/31 17904.31 17169.01
1997/09/30 19794.97 18837.32
1997/10/31 18872.42 17917.87
1997/11/30 18895.20 18197.57
1997/12/31 19341.37 18866.87
1998/01/31 20158.24 19656.64
1998/02/28 21778.80 21197.92
1998/03/31 23728.75 22712.30
1998/04/30 24374.34 23157.91
1998/05/31 24993.58 23631.96
1998/06/30 24848.65 23895.92
1998/07/31 25204.39 24373.13
1998/08/31 20448.10 21312.60
1998/09/30 19907.91 20465.85
1998/10/31 21449.42 22109.46
1998/11/30 22648.38 23290.99
1998/12/31 23531.12 24314.63
1999/01/31 23820.98 24163.15
1999/02/28 22911.88 23554.96
1999/03/31 22990.93 23817.36
1999/04/30 23728.75 24531.41
1999/05/31 22727.43 23357.58
1999/06/30 23333.49 23756.30
1999/07/31 23755.10 23981.51
1999/08/31 23913.21 24229.96
1999/09/30 23662.88 24047.99
1999/10/31 24558.80 24937.77
1999/11/30 25639.17 25615.08
1999/12/31 29122.46 28244.98
2000/01/31 27602.56 26237.89
2000/02/29 30248.82 27611.44
2000/03/31 29841.71 28283.78
2000/04/28 27968.97 27040.43
IMATRL PRASUN SHR__CHT 20000430 20000531 112218 R00000000000080
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Europe Capital Appreciation Fund on December 21,
1993, when the fund started. As the chart shows, by April 30, 2000,
the value of the investment would have grown to $27,969 - a 179.69%
increase on the initial investment. For comparison, look at how the
Morgan Stanley Capital International Europe Index did over the same
period. With dividends and capital gains, if any, reinvested, the same
$10,000 would have grown to $27,040 - a 170.40% increase.
UNDERSTANDING PERFORMANCE
Many markets around the globe offer the
potential for significant growth over time; however,
investing in foreign markets means assuming greater
risks than investing in the United States. Factors like
changes in a country's financial markets, its local
political and economic climate, and the fluctuating
value of its currency create these risks. For these
reasons an international fund's performance may
be more volatile than a fund that invests exclusively
in the United States. Past performance is no
guarantee of future results and you may have a
gain or loss when you sell your shares.
(checkmark)
EUROPE CAPITAL APPRECIATION
FUND TALK: THE MANAGER'S OVERVIEW
NOTE TO SHAREHOLDERS: Ian Hart became Portfolio Manager of Fidelity
Europe Capital Appreciation Fund on April 1, 2000.
Q. HOW DID THE FUND PERFORM, IAN?
A. The fund performed well. For the six-month period that ended April
30, 2000, the fund posted a total return of 13.89%. In comparison, the
Morgan Stanley Capital International (MSCI) Europe Index returned
8.43%. The fund also compares its performance against the European
region funds average, as tracked by Lipper Inc., which returned 21.51%
during the same period. For the 12 months that ended April 30, 2000,
the fund returned 17.87%, while the MSCI index and Lipper average
posted returns of 10.23% and 25.29%, respectively.
Q. WHAT WERE THE MAJOR FACTORS THAT INFLUENCED THE FUND'S PERFORMANCE?
A. There were three industry themes that drove fund performance:
technology, telecommunications and media. These were the growth
sectors that led overall market activity for most of the period,
responding to a global expansion of the Internet-based new economy.
The fund was properly positioned to take advantage of this trend, and
a number of the fund's large cap holdings in these three growth
sectors did extremely well. A slowly improving European economy also
helped create a few pockets of strong consumer demand, most notably in
mobile telephones and consumer electronics, which had a positive
effect on performance. Relative to the index, the portfolio was
underweighted in the finance sector, which had a net positive effect
on performance by limiting the fund's exposure to banks. This sector
has not performed well of late, based mainly on rising interest rates
and fears that the Internet will eat into bank profitability. The
portfolio also was underweighted in the slow-performing cyclical
sector, with the exception of oil stocks, where robust demand and
price increases combined to drive earnings and stock prices higher.
The fund lagged the Lipper average, which was more heavily invested in
some of the high-flying technology sectors that performed so well
during the period.
Q. YOU'VE JUST TAKEN OVER MANAGING THE FUND, IAN. CAN WE EXPECT TO SEE
ANY SIGNIFICANT CHANGES IN INVESTMENT STRATEGY OR STYLE?
A. I don't anticipate there will be much change in strategy or style
under my tenure as portfolio manager. I will focus on growth and on
bottom-up stock picking. I'll continue to work closely with my former
Fidelity analyst colleagues in London and search for strong,
well-managed companies that can produce attractive and sustainable
earnings growth.
Q. WHICH INDIVIDUAL POSITIONS HELPED PERFORMANCE THE MOST?
A. There were three names that showed particularly attractive rates of
growth in the booming mobile telephony market. Two of them - Ericsson
and Nokia - continued their world leadership positions with strong
earnings and stock appreciation. A third - Mannesmann, Germany's top
wireless service provider - also was a strong performer and was
acquired during the period by Vodafone AirTouch, which is the fund's
second-largest holding. In the media sector, TF-1, France's No. 1
commercial television operation, had extraordinary growth in its
earnings and stock price, based mainly on capturing a market-leading
share of accelerating TV advertising expenditures in France's
rebounding economy.
Q. WERE THERE ANY HOLDINGS THAT DIDN'T PERFORM AS WELL AS YOU WOULD
HAVE LIKED?
A. Unilever, a British consumer goods company, and Vendex, a Dutch
apparel retailer, both showed disappointing earnings in a retail
environment constrained by margin pressures. Royal Bank of Scotland,
which had been a potential takeover target, became a consolidator
itself by acquiring National Westminster Bank, and the market reacted
negatively to the deal.
Q. WHAT'S YOUR OUTLOOK FOR THE NEXT SIX MONTHS, IAN?
A. Despite the market volatility that we began to see at the end of
the period, I remain positive in my outlook for the mid- to long-term.
Continued volatility may cast a shadow over that view in the short
term, which means that we will have to be even more focused on picking
stocks that meet their earnings projections. But on the whole, I'm
still bullish on the fundamental prospects for the European region.
Economic growth throughout most of the region continues to accelerate.
Corporate earnings are forecasted to show healthy gains. There also is
a continuing trend toward acquisitions and consolidation in certain
industry sectors, which is likely to have an ongoing positive effect.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET OR OTHER CONDITIONS. FOR MORE INFORMATION, SEE PAGE 3.
FUND FACTS
GOAL: long-term capital appreciation by investing mainly
in equity securities of European issuers
FUND NUMBER: 341
TRADING SYMBOL: FECAX
START DATE: December 21, 1993
SIZE: as of April 30, 2000, more than
$108 million
MANAGER: Ian Hart, since April
2000; international equity analyst,
1997-2000; European equity analyst,
1994-1997; joined Fidelity in 1994
(checkmark)
EUROPE CAPITAL APPRECIATION
INVESTMENT CHANGES
AS OF APRIL 30, 2000
United States 7.1%
Finland 3.2%
Row: 1, Col: 1, Value: 3.2
Row: 1, Col: 2, Value: 20.5
Row: 1, Col: 3, Value: 10.1
Row: 1, Col: 4, Value: 9.6
Row: 1, Col: 5, Value: 5.9
Row: 1, Col: 6, Value: 4.7
Row: 1, Col: 7, Value: 3.9
Row: 1, Col: 8, Value: 6.5
Row: 1, Col: 9, Value: 28.5
Row: 1, Col: 10, Value: 7.1
France 20.5%
United Kingdom 28.5%
Germany 10.1%
Switzerland 6.5%
Netherlands 9.6%
Sweden 3.9%
Spain 4.7%
Other 5.9%
GEOGRAPHIC DIVERSIFICATION (%
OF FUND'S NET ASSETS)
AS OF OCTOBER 31, 1999
United States 2.5%
Finland 4.3%
Row: 1, Col: 1, Value: 4.3
Row: 1, Col: 2, Value: 18.6
Row: 1, Col: 3, Value: 11.5
Row: 1, Col: 4, Value: 8.800000000000001
Row: 1, Col: 5, Value: 3.9
Row: 1, Col: 6, Value: 3.2
Row: 1, Col: 7, Value: 3.2
Row: 1, Col: 8, Value: 11.5
Row: 1, Col: 9, Value: 32.5
Row: 1, Col: 10, Value: 2.5
France 18.6%
United Kingdom 32.5%
Germany 11.5%
Switzerland 11.5%
Netherlands 8.8%
Sweden 3.2%
Other 3.9%
Spain 3.2%
<TABLE>
<CAPTION>
<S> <C> <C>
ASSET ALLOCATION
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Stocks and Investment Companies 94.5 97.5
Short-Term Investments and 5.5 2.5
Net Other Assets
TOP TEN STOCKS BY ISSUER AS
OF APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
TotalFinaELF SA (France, Oil 5.2 3.7
& Gas)
Vodafone AirTouch PLC 5.0 4.0
(United Kingdom, Cellular)
Telefonaktiebolaget LM 3.3 1.6
Ericsson (Sweden,
Communications Equipment)
Nokia AB (Finland, 3.2 3.7
Communications Equipment)
Vivendi SA (France, Water) 2.8 1.6
BP Amoco PLC (United 2.8 2.2
Kingdom, Oil & Gas)
Deutsche Telekom AG 2.5 1.9
(Germany, Telephone Services)
Royal Dutch Petroleum Co. 2.3 0.0
(Netherlands, Oil & Gas)
France Telecom SA (France, 2.3 1.6
Telephone Services)
Telefonica SA (Spain, 1.9 1.3
Telephone Services)
31.3 21.6
TOP TEN MARKET SECTORS AS OF
APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Utilities 20.4 14.9
Finance 17.0 28.6
Technology 13.5 7.3
Energy 10.9 8.8
Health 7.8 7.4
Nondurables 5.9 5.4
Media & Leisure 6.0 3.6
Industrial Machinery & 3.9 4.0
Equipment
Retail & Wholesale 3.3 4.3
Services 2.3 5.3
</TABLE>
EUROPE CAPITAL APPRECIATION
INVESTMENTS APRIL 30, 2000 (UNAUDITED)
Showing Percentage of Net Assets
COMMON STOCKS - 94.3%
SHARES VALUE (NOTE 1)
DENMARK - 1.4%
Bang & Olufsen Holding AS 87,050 $ 2,890,932
Novo-Nordisk AS (B Shares) 62,000 8,326,923
11,217,855
FINLAND - 3.2%
Nokia AB 451,200 25,662,000
FRANCE - 20.5%
Access Commerce SA 22,900 1,356,693
Aventis SA 108,597 6,108,581
AXA SA de CV 98,300 14,613,032
Banque Nationale de Paris 58,100 4,707,721
(BNP)
Canal Plus SA 27,400 5,294,431
Castorama Dubois 39,900 8,728,045
Investissements SA
Clarins SA 43,100 4,281,901
France Telecom SA 120,000 18,615,455
Groupe Danone 11,000 2,411,241
ILOG SA sponsored ADR (a) 46,900 1,688,400
Lafarge SA 44,700 3,711,579
Pernod-Ricard 43,114 1,954,989
Remy Cointreau SA (a) 23,776 478,704
Rhodia SA 280,000 5,206,202
Royal Canin SA 34,000 3,194,997
Sanofi-Synthelabo SA 143,500 5,369,056
Societe Generale Class A 12,900 2,678,405
Suez Lyonnaise des Eaux 41,300 6,493,398
Television Francaise 1 SA 4,192 2,877,061
TotalFinaElf SA Class B 276,500 41,820,622
Vivendi SA 225,682 22,379,927
163,970,440
GERMANY - 9.9%
ACG AG 7,300 1,762,934
Allianz AG (Reg.) 31,100 11,998,902
BASF AG 130,000 5,698,112
Deutsche Telekom AG 311,000 20,236,277
Karstadt Quelle AG 143,000 4,366,301
Munich Reinsurance AG (Reg.) 23,100 6,790,075
Primacom AG (a) 74,300 5,722,402
Schering AG 500 70,865
Siemens AG 74,900 11,127,620
Software AG (a) 41,200 4,769,071
United Internet AG (a) 7,300 1,882,965
Wella AG 240,000 5,247,765
79,673,289
IRELAND - 0.1%
Trintech Group PLC sponsored 38,000 1,026,000
ADR
ISRAEL - 0.4%
Orad Hi-Tech Systems Ltd. (a) 71,800 3,272,106
SHARES VALUE (NOTE 1)
ITALY - 2.5%
Banca Intesa Spa 1,435,000 $ 5,354,668
Telecom Italia Mobile Spa 857,300 8,208,461
Telecom Italia Spa 462,800 6,612,254
20,175,383
JAPAN - 0.0%
Crayfish Co. Ltd. sponsored 3,200 47,600
ADR
NETHERLANDS - 9.6%
Equant NV (a) 60,100 4,664,359
ING Groep NV (Certificaten 220,717 12,074,374
Van Aandelen)
Koninklijke Ahold NV 245,100 5,730,118
Koninklijke KPN NV 45,000 4,546,540
Koninklijke Philips 183,600 8,211,483
Electronics NV
Numico NV 92,300 3,440,788
Nutreco Holding NV 121,300 4,726,392
Royal Dutch Petroleum Co. 326,400 18,727,201
(Hague Registry)
STMicroelectronics NV 34,100 6,523,785
United Pan-Europe 64,700 2,360,602
Communications NV (a)
Vendex KBB NV 244,200 3,772,665
Versatel Telecom 57,500 2,311,209
International NV (a)
77,089,516
NORWAY - 1.5%
Norsk Hydro AS 125,000 4,578,550
Opticom ASA (a) 17,300 1,828,456
Tandberg ASA (a) 168,000 2,574,166
TANDBERG Television ASA (a) 312,300 2,829,200
11,810,372
SPAIN - 4.7%
Altadis SA 606,000 7,141,739
Banco Santander Central 752,000 7,861,657
Hispano SA
Cortefiel SA 197,900 4,184,722
Sogecable SA (a) 76,300 3,237,256
Telefonica SA (a) 670,000 14,949,238
37,374,612
SWEDEN - 3.9%
Elanders AB (B Shares) 141,800 4,542,021
Tele1 Europe Holding AB (a) 8,800 138,966
Telefonaktiebolaget LM 300,800 26,602,000
Ericsson (B Shares)
31,282,987
SWITZERLAND - 6.5%
ABB Ltd. (Reg.) 77,600 8,735,079
Ascom Holding AG (Bearer) 616 2,096,335
Credit Suisse Group (Reg.) 45,000 8,154,450
Fantastic Corp. (a) 223,300 4,090,888
Gretag Imaging Holding AG 13,400 2,701,047
(Reg. D)
Kuoni Reisen Holding AG Class 345 1,499,215
B (Reg.)
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
SWITZERLAND - CONTINUED
Logitech International SA (a) 5,762 $ 3,814,518
Nestle SA (Reg.) 3,788 6,698,965
Novartis AG (Reg.) 3,426 4,801,183
PubliGroupe SA 3,135 2,425,567
Roche Holding AG 696 7,292,007
participation certificates
52,309,254
UNITED KINGDOM - 28.5%
3i Group PLC 407,800 8,166,038
Abbey National PLC 372,200 4,229,626
Allied Zurich PLC 935,300 9,262,802
Amvescap PLC 385,600 5,561,990
AstraZeneca Group PLC 106,000 4,465,250
Barclays PLC 340,000 8,672,880
BP Amoco PLC 2,611,700 22,199,467
British Land Co. PLC 617,552 4,103,692
British Telecommunications PLC 458,300 8,386,889
Cable & Wireless PLC 740,500 12,228,399
Carlton Communications PLC 696,600 8,375,981
Diageo PLC 1,038,200 8,378,723
Energis PLC (a) 66,700 3,283,669
Filtronic PLC 86,900 2,335,485
Glaxo Wellcome PLC 215,900 6,780,610
HSBC Holdings PLC (Reg.) 485,900 5,557,483
Jazztel PLC sponsored ADR 29,900 1,554,800
Legal & General Group PLC 2,585,300 6,727,241
Lloyds TSB Group PLC 600,000 5,853,588
Marconi PLC 327,100 4,072,821
Misys PLC 340,300 3,875,049
Prudential Corp. PLC 460,300 7,050,650
Reuters Group PLC 170,000 3,034,452
Royal Bank of Scotland Group 29,894 462,778
PLC
Scottish Media Group PLC 533,400 9,695,052
SmithKline Beecham PLC 672,900 9,252,373
SSL International PLC 585,700 5,936,999
Telewest Communications PLC 660,500 4,004,304
(a)
Vodafone AirTouch PLC 8,508,591 39,990,425
WPP Group PLC 279,500 4,489,662
227,989,178
UNITED STATES OF AMERICA - 1.6%
Bristol-Myers Squibb Co. 49,140 2,576,779
Eli Lilly & Co. 103,896 8,032,460
SCM Microsystems, Inc. (a) 26,200 2,169,497
12,778,736
TOTAL COMMON STOCKS 755,679,328
(Cost $668,968,457)
NONCONVERTIBLE PREFERRED
STOCKS - 0.2%
SHARES VALUE (NOTE 1)
GERMANY - 0.2%
SAP AG (Cost $2,026,461) 3,200 $ 1,891,441
CASH EQUIVALENTS - 19.3%
Central Cash Collateral Fund, 90,206,315 90,206,315
5.94% (b)
Taxable Central Cash Fund, 64,137,619 64,137,619
5.77% (b)
TOTAL CASH EQUIVALENTS 154,343,934
(Cost $154,343,934)
TOTAL INVESTMENT PORTFOLIO - 911,914,703
113.8%
(Cost $825,338,852)
NET OTHER ASSETS - (13.8)% (110,431,454)
NET ASSETS - 100% $ 801,483,249
LEGEND
(a) Non-income producing
(b) The rate quoted is the annualized seven-day yield of the fund at
period end.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $939,247,288 and $714,744,622, respectively.
The fund participated in the security lending program. At period end,
the value of securities loaned amounted to $86,257,564. The fund
received cash collateral of $90,206,315 which was invested in cash
equivalents.
INCOME TAX INFORMATION
At April 30, 2000, the aggregate cost of investment securities for
income tax purposes was $827,378,752. Net unrealized appreciation
aggregated $84,535,951, of which $128,583,189 related to appreciated
investment securities and $44,047,238 related to depreciated
investment securities.
EUROPE CAPITAL APPRECIATION
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000 (UNAUDITED)
ASSETS
Investment in securities, at $ 911,914,703
value (cost $825,338,852) -
See accompanying schedule
Foreign currency held at 3,957,955
value (cost $3,957,955)
Receivable for investments 7,165,578
sold
Receivable for fund shares 613,257
sold
Dividends receivable 1,893,108
Interest receivable 326,054
Redemption fees receivable 169
Other receivables 84,067
TOTAL ASSETS 925,954,891
LIABILITIES
Payable for investments $ 31,950,342
purchased
Payable for fund shares 1,467,609
redeemed
Accrued management fee 493,302
Other payables and accrued 354,074
expenses
Collateral on securities 90,206,315
loaned, at value
TOTAL LIABILITIES 124,471,642
NET ASSETS $ 801,483,249
Net Assets consist of:
Paid in capital $ 655,930,322
Distributions in excess of (219,643)
net investment income
Accumulated undistributed net 59,137,354
realized gain (loss) on
investments and foreign
currency transactions
Net unrealized appreciation 86,635,216
(depreciation) on
investments and assets and
liabilities in foreign
currencies
NET ASSETS, for 38,884,900 $ 801,483,249
shares outstanding
NET ASSET VALUE, offering $20.61
price and redemption price
per share ($801,483,249
(divided by) 38,884,900
shares)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30,
2000 (UNAUDITED)
INVESTMENT INCOME $ 2,809,218
Dividends
Interest 1,279,977
Security lending 103,858
4,193,053
Less foreign taxes withheld (358,079)
TOTAL INCOME 3,834,974
EXPENSES
Management fee Basic fee $ 2,668,800
Performance adjustment 145,218
Transfer agent fees 822,602
Accounting and security 198,920
lending fees
Non-interested trustees' 1,194
compensation
Custodian fees and expenses 199,495
Registration fees 132,629
Audit 17,558
Legal 8,151
Miscellaneous 586
Total expenses before 4,195,153
reductions
Expense reductions (140,543) 4,054,610
NET INVESTMENT INCOME (LOSS) (219,636)
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities 61,173,744
Foreign currency transactions (121,017) 61,052,727
Change in net unrealized
appreciation (depreciation)
on:
Investment securities 9,340,424
Assets and liabilities in 71,649 9,412,073
foreign currencies
NET GAIN (LOSS) 70,464,800
NET INCREASE (DECREASE) IN $ 70,245,164
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION Sales $ 1,050,752
charges paid to FDC
Sales charges - Retained by $ 1,050,752
FDC
Expense Reductions Directed $ 135,983
brokerage arrangements
Transfer agent credits 4,560
$ 140,543
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
INCREASE (DECREASE) IN NET SIX MONTHS ENDED APRIL 30, YEAR ENDED OCTOBER 31, 1999
ASSETS 2000 (UNAUDITED)
Operations Net investment $ (219,636) $ 4,874,467
income (loss)
Net realized gain (loss) 61,052,727 38,149,941
Change in net unrealized 9,412,073 35,596,084
appreciation (depreciation)
NET INCREASE (DECREASE) IN 70,245,164 78,620,492
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (4,070,674) -
From net investment income
From net realized gain (14,717,039) -
TOTAL DISTRIBUTIONS (18,787,713) -
Share transactions Net 379,023,083 134,939,446
proceeds from sales of shares
Reinvestment of distributions 18,063,088 -
Cost of shares redeemed (121,972,897) (389,794,618)
NET INCREASE (DECREASE) IN 275,113,274 (254,855,172)
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
Redemption fees 157,981 182,122
TOTAL INCREASE (DECREASE) 326,728,706 (176,052,558)
IN NET ASSETS
NET ASSETS
Beginning of period 474,754,543 650,807,101
End of period (including $ 801,483,249 $ 474,754,543
under (over) distribution of
net investment income of
$(219,643) and $4,567,063,
respectively)
OTHER INFORMATION
Shares
Sold 18,275,135 7,566,679
Issued in reinvestment of 903,170 -
distributions
Redeemed (5,769,604) (22,059,597)
Net increase (decrease) 13,408,701 (14,492,918)
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SIX MONTHS ENDED APRIL 30, 2000 YEARS ENDED OCTOBER 31,
SELECTED PER-SHARE DATA (UNAUDITED) 1999 1998 1997 1996
Net asset value, beginning of $ 18.64 $ 16.28 $ 16.57 $ 14.07 $ 12.08
period
Income from Investment
Operations
Net investment income (loss) (.01) D .15 D .15 D .20 D .22 E
Net realized and unrealized 2.58 2.20 1.79 3.81 2.00
gain (loss)
Total from investment 2.57 2.35 1.94 4.01 2.22
operations
Less Distributions
From net investment income (.13) - (.17) (.23) (.23)
From net realized gain (.47) - (2.08) (1.29) -
Total distributions (.60) - (2.25) (1.52) (.23)
Redemption fees added to paid - .01 .02 .01 -
in capital
Net asset value, end of period $ 20.61 $ 18.64 $ 16.28 $ 16.57 $ 14.07
TOTAL RETURN B, C 13.89% 14.50% 13.65% 31.57% 18.74%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 801,483 $ 474,755 $ 650,807 $ 372,049 $ 170,192
(000 omitted)
Ratio of expenses to average 1.16% A 1.07% 1.12% 1.10% 1.33%
net assets
Ratio of expenses to average 1.12% A, F .97% F 1.08% F 1.07% F 1.30% F
net assets after expense
reductions
Ratio of net investment (.06)% A .86% .89% 1.33% 1.66%
income (loss) to average net
assets
Portfolio turnover rate 219% A 150% 179% 189% 155%
A ANNUALIZED
B THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT
INCLUDE THE FORMER ONE TIME
SALES CHARGE AND FOR PERIODS
OF LESS THAN ONE YEAR ARE
NOT ANNUALIZED.
D NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
E INVESTMENT INCOME PER SHARE
REFLECTS A SPECIAL DIVIDEND
WHICH AMOUNTED TO $.04 PER
SHARE.
F FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA 1995
Net asset value, beginning of $ 11.35
period
Income from Investment
Operations
Net investment income (loss) .23
Net realized and unrealized .50
gain (loss)
Total from investment .73
operations
Less Distributions
From net investment income -
From net realized gain -
Total distributions -
Redemption fees added to paid -
in capital
Net asset value, end of period $ 12.08
TOTAL RETURN B, C 6.43%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 194,433
(000 omitted)
Ratio of expenses to average 1.36%
net assets
Ratio of expenses to average 1.36%
net assets after expense
reductions
Ratio of net investment 1.45%
income (loss) to average net
assets
Portfolio turnover rate 176%
A ANNUALIZED
B THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT
INCLUDE THE FORMER ONE TIME
SALES CHARGE AND FOR PERIODS
OF LESS THAN ONE YEAR ARE
NOT ANNUALIZED.
D NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
E INVESTMENT INCOME PER SHARE
REFLECTS A SPECIAL DIVIDEND
WHICH AMOUNTED TO $.04 PER
SHARE.
F FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
</TABLE>
HONG KONG AND CHINA
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value).
CUMULATIVE TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1994 PAST 6 MONTHS PAST 1 YEAR LIFE OF FUND
FIDELITY HONG KONG AND CHINA 22.40% 34.89% 82.67%
FIDELITY HONG KONG AND CHINA 18.73% 30.85% 77.19%
(INCL. 3.00% SALES CHARGE)
Hang Seng 16.77% 15.82% 72.13%
China Region Funds Average 27.77% 39.71% n/a
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year or since
the fund started on November 1, 1995. For example, if you had invested
$1,000 in a fund that had a 5% return over the past year, the value of
your investment would be $1,050. You can compare the fund's returns to
the performance of the Hang Seng Index - a market
capitalization-weighted index of the stocks of the 33 largest
companies in the Hong Kong market. You can also compare the fund's
performance to the China region funds average, which reflects the
performance of mutual funds with similar objectives tracked by Lipper
Inc. The past six months average represents a peer group of 27 mutual
funds. These benchmarks include reinvested dividends and capital
gains, if any, and exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1994 PAST 1 YEAR LIFE OF FUND
FIDELITY HONG KONG AND CHINA 34.89% 14.33%
FIDELITY HONG KONG AND CHINA 30.85% 13.56%
(INCL. 3.00% SALES CHARGE)
Hang Seng 15.82% 12.83%
China Region Funds Average 39.71% n/a
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
Hong Kong and China Hang Seng
00352 EX004
1995/11/01 9700.00 10000.00
1995/11/30 9729.10 10055.31
1995/12/31 9942.65 10355.18
1996/01/31 11136.94 11707.43
1996/02/29 11001.00 11493.79
1996/03/31 10787.39 11344.61
1996/04/30 10816.52 11377.80
1996/05/31 11156.36 11717.22
1996/06/30 11010.71 11485.79
1996/07/31 10738.84 11172.35
1996/08/31 11272.87 11703.04
1996/09/30 12010.80 12513.71
1996/10/31 12593.38 13153.37
1996/11/30 13962.44 14151.17
1996/12/31 14017.97 14238.54
1997/01/31 13741.76 14107.81
1997/02/28 13899.59 14226.29
1997/03/31 13021.62 13329.79
1997/04/30 13297.84 13761.33
1997/05/31 15320.13 15770.49
1997/06/30 15438.51 16275.44
1997/07/31 16888.65 17575.67
1997/08/31 15300.40 15196.09
1997/09/30 15921.89 16236.25
1997/10/31 10910.54 11505.49
1997/11/30 10999.32 11431.72
1997/12/31 10926.40 11656.10
1998/01/31 9716.76 10104.22
1998/02/28 11630.37 12566.68
1998/03/31 11858.41 12638.18
1998/04/30 10966.06 11431.68
1998/05/31 9617.61 9866.13
1998/06/30 9131.77 9474.51
1998/07/31 8655.85 8841.87
1998/08/31 7604.85 8110.53
1998/09/30 8507.12 8789.59
1998/10/31 10162.94 11326.10
1998/11/30 10470.30 11606.20
1998/12/31 10342.98 11205.69
1999/01/31 9729.16 10599.24
1999/02/28 9841.69 10992.69
1999/03/31 10864.74 12198.25
1999/04/30 13135.90 14862.47
1999/05/31 12409.54 13434.96
1999/06/30 14118.02 15067.86
1999/07/31 14015.72 14677.98
1999/08/31 14210.09 15000.69
1999/09/30 13841.80 14161.97
1999/10/31 14476.09 14740.74
1999/11/30 16941.62 17105.05
1999/12/31 19124.60 18850.83
2000/01/31 18081.06 17246.84
2000/02/29 19558.55 19059.16
2000/03/31 20302.45 19312.56
2000/04/28 17719.44 17213.16
IMATRL PRASUN SHR__CHT 20000430 20000524 093157 R00000000000057
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Hong Kong and China Fund on November 1, 1995,
when the fund started, and the current 3.00% sales charge was paid. As
the chart shows, by April 30, 2000, the value of the investment would
have grown to $17,719 - a 77.19% increase on the initial investment.
For comparison, look at how the Hang Seng Index did over the same
period. With dividends and capital gains, if any, reinvested, the same
$10,000 would have grown to $17,213 - a 72.13% increase.
UNDERSTANDING PERFORMANCE
Many markets around the globe offer the
potential for significant growth over time; however,
investing in foreign markets means assuming greater
risks than investing in the United States. Factors like
changes in a country's financial markets, its local
political and economic climate, and the fluctuating
value of its currency create these risks. For these
reasons an international fund's performance may
be more volatile than a fund that invests exclusively
in the United States. Past performance is no
guarantee of future results and you may have a
gain or loss when you sell your shares.
(checkmark)
HONG KONG AND CHINA
FUND TALK: THE MANAGER'S OVERVIEW
(PORTFOLIO MANAGER PHOTO)
An interview with
Joseph Tse, Portfolio
Manager of Fidelity
Hong Kong and China Fund
Q. HOW DID THE FUND PERFORM, JOSEPH?
A. For the six months that ended April 30, 2000, the fund returned
22.40%, compared to 16.77% for the Hang Seng Index and 27.77% for the
China region funds average tracked by Lipper Inc. For the 12-month
period that ended April 30, 2000, the fund returned 34.89%, while the
Hang Seng and the Lipper average had returns of 15.82% and 39.71%,
respectively.
Q. WHAT FACTORS HAD THE MOST INFLUENCE ON PERFORMANCE DURING THE
SIX-MONTH PERIOD?
A. The fund's significant underweighting in banks relative to the
index proved particularly beneficial. Stocks such as HSBC and Hang
Seng Bank trended lower in the face of rising interest rates and
decelerating loan growth. Having exposure to the Taiwanese stock
market - home to some of the fastest-growing technology companies in
the region, including Taiwan Semiconductor and Winbond Electronics -
further boosted performance. Additionally, the fund was
well-positioned to benefit from the rally in new economy stocks that
swept through global equity markets during the period. By owning some
of the higher-quality TMT - or technology, media and
telecommunications - stocks, the fund was able to withstand the sharp
tech sell-off that plagued these issues late in the period. ASM
Pacific Technology, Television Broadcasts and Asia Satellite are names
that quickly come to mind. The fund failed to keep pace with its
Lipper peers, a group that was more highly concentrated in high-flying
Taiwanese issues.
Q. HOW DID THE FUND'S HOLDINGS IN TELECOMMUNICATIONS PERFORM?
A. Our relative underexposure to telecom really hurt. Similar to the
banking sector, telecom made up nearly one-third of the Hang Seng
Index during the period. We gave up a lot by not owning enough of the
period's best performers - China Telecom and conglomerate Hutchison
Whampoa - which together accounted for over 32% of the index over the
period. In an effort to compensate for our deficiency, I built up an
overweighted position in wireless operator Smartone. Unfortunately,
this strategy failed us, as too many players infiltrating the mobile
business spoiled the earnings outlook for everyone. Not surprisingly,
the fund's considerable underweighting in Cable & Wireless HKT helped,
as the stock struggled to make forward progress. This was a bold bet
given the fact that most of my competitors had at least a neutral
weighting in the stock relative to the index.
Q. WHAT OTHER MOVES HELPED SHAPE PERFORMANCE?
A. Raising the fund's exposure to growth opportunities outside of the
index, namely in garment retailer Giordano - Hong Kong's equivalent to
Gap stores in the U.S. - as well as Li & Fung, a provider of
supply-chain services, paid dividends. Underweighting poorly
performing property stocks, such as Wharf Holdings and New World
Development, also helped. Slightly overweighting some of the bigger
names in the index - including Sun Hung Kai Properties and Henderson
Land Development - hurt performance. The biggest of them all, Cheung
Kong Holdings, was the only exception, as it benefited from its stake
in Hutchison Whampoa.
Q. WHAT OTHER STOCKS CONTRIBUTED TO PERFORMANCE? WHICH DIDN'T?
A. Pacific Century Cyberworks soared on investors' enthusiasm for its
collection of Internet investments. Creative Technology, a Singapore
company known worldwide for its Sound Blaster products and related
multimedia devices, responded to record earnings driven by strong
demand for audio systems. The fund no longer held Creative Technology
at the close of the period. Micro-motor manufacturer Johnson Electric
proved that an old economy stock can consistently deliver robust
earnings growth. On the downside, banks we did own - namely Standard
Chartered, Liu Chong Hing and Wing Hang - dragged on performance, as
did fast-food chain Cafe de Coral and China retailer Glorious Sun.
Q. WHAT'S YOUR OUTLOOK?
A. I'm not terribly bullish overall. While there are some good stories
out there, the problem is many of them are still too expensive.
Property companies and banks, both of which look weak right now, have
traditionally driven the Hong Kong market. With the end of the run-up
in TMT stocks, investors are now searching for that next hot spot.
I'll keep an eye on the Southeast Asian markets outside of Hong Kong
and China, particularly Taiwan, and may increase the fund's exposure
in those markets if the opportunities look good. I'll continue to
closely monitor global trends and make every effort to be early to
those names poised to benefit.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET OR OTHER CONDITIONS. FOR MORE INFORMATION, SEE PAGE 3.
NOTE TO SHAREHOLDERS: The Hong Kong and China Fund may invest up to
35% of its total assets in any industry that represents more than 20%
of the Hong Kong & Chinese market. As of April 30, 2000, the fund did
not have more than 25% of its total assets invested in any one
industry.
FUND FACTS
GOAL: long-term growth of capital by investing mainly in equity
securities of Hong Kong and Chinese issuers
FUND NUMBER: 352
TRADING SYMBOL: FHKCX
START DATE: November 1, 1995
SIZE: as of April 30, 2000, more than
$228 million
MANAGER: Joseph Tse, since inception; director of research, Fidelity
Investments Management (Hong Kong), since 1994; manager, Asian portion
of various global equity funds, since 1993; joined Fidelity in 1990
(checkmark)
HONG KONG AND CHINA
INVESTMENT CHANGES
AS OF APRIL 30, 2000
United States 3.3%
Bermuda 0.1%
China 0.3%
United Kingdom 8.2%
Row: 1, Col: 1, Value: 0.1
Row: 1, Col: 2, Value: 0.3
Row: 1, Col: 3, Value: 0.1
Row: 1, Col: 4, Value: 79.59999999999999
Row: 1, Col: 5, Value: 0.1
Row: 1, Col: 6, Value: 8.300000000000001
Row: 1, Col: 7, Value: 8.199999999999999
Row: 1, Col: 8, Value: 3.3
Grand Cayman Islands 0.1%
Taiwan 8.3%
Singapore 0.1%
Hong Kong 79.6%
GEOGRAPHIC DIVERSIFICATION (%
OF FUND'S NET ASSETS)
AS OF OCTOBER 31, 1999
United States 1.3%
China 0.7%
Row: 1, Col: 1, Value: 0.7000000000000001
Row: 1, Col: 2, Value: 81.40000000000001
Row: 1, Col: 3, Value: 0.4
Row: 1, Col: 4, Value: 3.9
Row: 1, Col: 5, Value: 12.3
Row: 1, Col: 6, Value: 1.3
United Kingdom 12.3%
Taiwan 3.9%
Singapore 0.4%
Hong Kong 81.4%
<TABLE>
<CAPTION>
<S> <C> <C>
ASSET ALLOCATION
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Stocks and Investment Companies 97.1 98.9
Short-Term Investments and 2.9 1.1
Net Other Assets
TOP TEN STOCKS BY ISSUER AS
OF APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
China Telecom (Hong Kong) 14.8 8.5
Ltd. (Cellular)
Hutchison Whampoa Ltd. 10.9 9.7
(Electrical Equipment)
Cheung Kong Holdings Ltd. 8.5 6.1
(Real Estate)
HSBC Holdings PLC (Hong 7.2 10.7
Kong) (Banks)
Sun Hung Kai Properties Ltd. 4.8 6.8
(Real Estate)
Li & Fung Ltd. (Trading 3.6 0.0
Companies)
Johnson Electric Holdings 3.2 4.1
Ltd. (Electrical Equipment)
Television Broadcasts Ltd. 3.2 3.7
(Broadcasting)
Tracker Fund of Hong Kong 2.9 0.0
(TraHK) (Investment Companies)
Smartone Telecommunications 2.7 3.1
Holdings Ltd. (Cellular)
61.8 52.7
TOP TEN MARKET SECTORS AS OF
APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Utilities 19.1 18.1
Construction & Real Estate 16.8 21.4
Industrial Machinery & 15.4 14.3
Equipment
Finance 12.0 19.6
Technology 11.5 7.8
Retail & Wholesale 6.4 2.6
Media & Leisure 5.9 7.5
Holding Companies 2.8 1.5
Transportation 2.5 3.4
Durables 1.1 2.1
</TABLE>
HONG KONG AND CHINA
INVESTMENTS APRIL 30, 2000 (UNAUDITED)
Showing Percentage of Net Assets
COMMON STOCKS - 94.2%
SHARES VALUE (NOTE 1)
BASIC INDUSTRIES - 0.4%
CHEMICALS & PLASTICS - 0.1%
China Agrotech Holdings Ltd. 1,886,000 $ 193,707
METALS & MINING - 0.3%
China Resources Enterprise 572,000 719,672
Ltd.
TOTAL BASIC INDUSTRIES 913,379
CONSTRUCTION & REAL ESTATE -
16.8%
REAL ESTATE - 16.8%
Amoy Properties Ltd. 492,000 347,409
Cheung Kong Holdings Ltd. 1,637,000 19,545,390
Great Eagle Holdings Ltd. 442,000 754,721
Henderson Investment Ltd. 1,224,000 817,142
Henderson Land Development 1,091,000 4,762,296
Co. Ltd.
Kerry Properties Ltd. 864,000 1,064,873
New World Development Co. 6,738 9,083
Ltd.
Sun Hung Kai Properties Ltd. 1,377,021 10,916,672
Wharf Holdings Ltd. 162,485 336,898
38,554,484
DURABLES - 1.1%
CONSUMER ELECTRONICS - 0.1%
Konka Group Co. Ltd. Series B 325,925 290,814
TEXTILES & APPAREL - 1.0%
Far Eastern Textile Ltd. 333,540 512,384
Glorious Sun Enterprises Ltd. 6,446,000 1,737,890
2,250,274
TOTAL DURABLES 2,541,088
FINANCE - 12.0%
BANKS - 11.5%
Bank of East Asia Ltd. 276,000 597,065
Dah Sing Financial Holdings 145,744 570,694
Ltd.
Dao Heng Bank Group Ltd. 278,000 1,284,872
Hang Seng Bank Ltd. 300,500 2,768,083
HSBC Holdings PLC (Hong Kong) 1,443,404 16,508,933
(Reg.)
Liu Chong Hing Bank Ltd. 1,625,000 1,324,768
Standard Chartered PLC 174,592 2,335,279
Wing Hang Bank Ltd. 226,000 554,185
Wing Lung Bank Ltd. 122,000 420,549
26,364,428
CREDIT & OTHER FINANCE - 0.2%
Aeon Credit Service (ASIA) 1,476,000 549,537
Co. Ltd.
SECURITIES INDUSTRY - 0.3%
Guoco Group Ltd. 266,000 619,828
TOTAL FINANCE 27,533,793
SHARES VALUE (NOTE 1)
HEALTH - 0.1%
DRUGS & PHARMACEUTICALS - 0.0%
China Pharmaceutical 166,600 $ 1,989
Enterprise and Investment
Corp. Ltd. warrants 10/20/01
(a)
MEDICAL EQUIPMENT & SUPPLIES
- 0.1%
Quality Healthcare Asia Ltd. 390,000 160,224
(a)
TOTAL HEALTH 162,213
HOLDING COMPANIES - 2.8%
Citic Pacific Ltd. 1,370,000 6,279,159
Van Shung Chong Holdings Ltd. 522,000 127,332
6,406,491
INDUSTRIAL MACHINERY &
EQUIPMENT - 15.4%
ELECTRICAL EQUIPMENT - 15.4%
Chen Hsong Holdings Ltd. 3,870,000 665,777
Hutchison Whampoa Ltd. 1,705,000 24,844,655
Johnson Electric Holdings 921,080 7,420,340
Ltd.
Microelectronics Technology, 406,000 1,890,995
Inc. (a)
Zinwell Corp. 77,000 447,982
35,269,749
MEDIA & LEISURE - 5.9%
BROADCASTING - 4.0%
Asia Satellite 551,500 1,724,079
Telecommunications Holdings
Ltd.
i-CABLE Communications Ltd. 305,000 134,114
Television Broadcasts Ltd. 1,067,000 7,294,521
9,152,714
LODGING & GAMING - 0.8%
Hong Kong & Shanghai Hotels 1,086,000 585,588
Ltd. (The)
Mandarin Oriental 342,000 189,810
International Ltd.
Shangri-La Asia Ltd. 1,018,000 1,130,516
1,905,914
RESTAURANTS - 1.1%
Cafe de Coral Holdings Ltd. 6,674,000 2,399,148
TOTAL MEDIA & LEISURE 13,457,776
NONDURABLES - 0.2%
BEVERAGES - 0.2%
Vitasoy International 2,091,000 410,732
Holdings Ltd.
RETAIL & WHOLESALE - 6.4%
APPAREL STORES - 2.6%
Esprit Asia Holdings Ltd. 1,310,000 1,395,925
Giordano International Ltd. 2,710,000 4,436,007
5,831,932
GENERAL MERCHANDISE STORES -
0.2%
China Everbright Ltd. 746,000 526,762
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
RETAIL & WHOLESALE - CONTINUED
TRADING COMPANIES - 3.6%
Li & Fung Ltd. 2,142,000 $ 8,277,490
TOTAL RETAIL & WHOLESALE 14,636,184
TECHNOLOGY - 11.5%
COMMUNICATIONS EQUIPMENT - 0.9%
Pacific Century CyberWorks 538,000 1,001,528
Ltd.
Tecom Ltd. (a) 114,000 368,884
UTStarcom, Inc. 14,100 669,750
2,040,162
COMPUTER SERVICES & SOFTWARE
- 0.6%
Accton Technology Corp. (a) 92,000 231,541
AsiaInfo Holdings, Inc. 6,000 261,000
GigaMedia Ltd. 1,500 36,000
iSteelAsia.com Ltd. 515,460 40,368
Prosten Technology Holdings 887,000 225,477
Ltd.
SINA.com 33,200 651,550
1,445,936
COMPUTERS & OFFICE EQUIPMENT
- 2.6%
Acer, Inc. (a) 431,000 901,585
Asustek Computer, Inc. 38,000 421,049
Computer & Technologies 438,000 503,280
Holdings Ltd. (a)
D-Link Corp. 567,600 1,669,685
Legend Holdings Ltd. 354,000 411,306
Ocean Information Holdings 2,186,000 179,615
Ltd.
Systex Corp. 177,800 775,823
Technology Venture Holdings 534,000 198,816
Ltd.
WYSE Technology Taiwan Ltd. 434,000 936,231
5,997,390
ELECTRONIC INSTRUMENTS - 0.3%
Group Sense International 6,920,000 755,158
Ltd.
ELECTRONICS - 7.1%
Acer Sertek, Inc. 53,000 291,028
ASM Pacific Technology Ltd. 922,000 3,267,027
Chartered Semiconductor 1,000 87,375
Manufacturing Ltd. ADR
Hon Hai Precision Industries 76,000 732,799
Co. Ltd. (a)
Macronix International Co. 236,000 713,515
Ltd. (a)
Taiwan Semiconductor 524,460 3,376,977
Manufacturing Co. Ltd. (a)
United Microelectronics Corp. 1,211,000 4,096,699
Vtech Holdings Ltd. 416,630 1,727,690
SHARES VALUE (NOTE 1)
Winbond Electronics Corp. (a) 321,000 $ 991,486
Winbond Electronics Corp. 29,300 912,695
sponsored GDR (a)(c)
16,197,291
TOTAL TECHNOLOGY 26,435,937
TRANSPORTATION - 2.5%
AIR TRANSPORTATION - 1.8%
Cathay Pacific Airways Ltd. 1,998,000 3,603,998
Swire Pacific Ltd. Class A 70,000 395,424
3,999,422
SHIPPING - 0.1%
IMC Holdings Ltd. (a) 3,636,000 280,084
TRUCKING & FREIGHT - 0.6%
New World Infrastructure Ltd. 844,000 899,359
(a)
Shenzhen Expressway Co. Ltd. 4,288,000 478,946
(H Shares)
1,378,305
TOTAL TRANSPORTATION 5,657,811
UTILITIES - 19.1%
CELLULAR - 17.5%
China Telecom (Hong Kong) 4,610,000 33,811,466
Ltd. (a)
Smartone Telecommunications 2,006,000 6,283,961
Holdings Ltd.
SUNDAY Communications Ltd. 46,000 9,803
40,105,230
ELECTRIC UTILITY - 0.1%
CLP Holdings Ltd. 59,500 266,597
GAS - 0.2%
Hong Kong & China Gas Co. 336,380 369,240
Ltd.
TELEPHONE SERVICES - 1.3%
Cable & Wireless Hkt Ltd. 1,081,612 2,501,227
City Telecom (HK) Ltd. 1,562,000 546,462
3,047,689
TOTAL UTILITIES 43,788,756
TOTAL COMMON STOCKS 215,768,393
(Cost $146,305,702)
INVESTMENT COMPANIES - 2.9%
Tracker Fund of Hong Kong 3,269,900 6,506,971
(TraHK) (a) (Cost $5,473,942)
CONVERTIBLE BONDS - 0.0%
MOODY'S RATINGS (UNAUDITED) PRINCIPAL AMOUNT VALUE (NOTE 1)
MEDIA & LEISURE - 0.0%
LODGING & GAMING - 0.0%
Mandarin Oriental - $ 5 $ 24,750
International Ltd. 6.75%
3/23/05 (Cost $25,000)
CASH EQUIVALENTS - 2.4%
SHARES
Taxable Central Cash Fund, 5,553,961 5,553,961
5.77% (b) (Cost $5,553,961)
TOTAL INVESTMENT PORTFOLIO - 227,854,075
99.5%
(Cost $157,358,605)
NET OTHER ASSETS - 0.5% 1,114,327
NET ASSETS - 100% $ 228,968,402
LEGEND
(a) Non-income producing
(b) The rate quoted is the annualized seven-day yield of the fund at
period end.
(c) Security exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may be resold in
transactions exempt from registration, normally to qualified
institutional buyers. At the period end, the value of these securities
amounted to $912,695 or 0.4% of net assets.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $129,346,472 and $105,057,127, respectively.
INCOME TAX INFORMATION
At April 30, 2000, the aggregate cost of investment securities for
income tax purposes was $159,623,198. Net unrealized appreciation
aggregated $68,230,877, of which $77,823,637 related to appreciated
investment securities and $9,592,760 related to depreciated investment
securities.
At October 31, 1999, the fund had a capital loss carryforward of
approximately $50,478,000 all of which will expire on October 31,
2006.
HONG KONG AND CHINA
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000 (UNAUDITED)
ASSETS
Investment in securities, at $ 227,854,075
value (cost $157,358,605) -
See accompanying schedule
Cash 46
Foreign currency held at 1,336,121
value (cost $1,338,767)
Receivable for fund shares 150,659
sold
Dividends receivable 541,240
Interest receivable 15,799
Redemption fees receivable 537
Other receivables 218
TOTAL ASSETS 229,898,695
LIABILITIES
Payable for fund shares $ 644,635
redeemed
Accrued management fee 146,737
Other payables and accrued 138,921
expenses
TOTAL LIABILITIES 930,293
NET ASSETS $ 228,968,402
Net Assets consist of:
Paid in capital $ 200,341,879
Undistributed net investment 20,883
income
Accumulated undistributed net (41,886,420)
realized gain (loss) on
investments and foreign
currency transactions
Net unrealized appreciation 70,492,060
(depreciation) on
investments and assets and
liabilities in foreign
currencies
NET ASSETS, for 13,354,231 $ 228,968,402
shares outstanding
NET ASSET VALUE and $17.15
redemption price per share
($228,968,402 (divided by)
13,354,231 shares)
Maximum offering price per $17.68
share (100/97.00 of $17.15)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30,
2000 (UNAUDITED)
INVESTMENT INCOME $ 1,779,616
Dividends
Interest 192,580
1,972,196
Less foreign taxes withheld (4,929)
TOTAL INCOME 1,967,267
EXPENSES
Management fee $ 899,517
Transfer agent fees 345,969
Accounting fees and expenses 72,942
Non-interested trustees' 349
compensation
Custodian fees and expenses 132,147
Registration fees 37,697
Audit 13,509
Legal 2,917
Reports to shareholders 10,028
Miscellaneous 137
Total expenses before 1,515,212
reductions
Expense reductions (9,464) 1,505,748
NET INVESTMENT INCOME 461,519
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities 11,450,248
Foreign currency transactions 20,266 11,470,514
Change in net unrealized
appreciation (depreciation)
on:
Investment securities 26,900,127
Assets and liabilities in (3,684) 26,896,443
foreign currencies
NET GAIN (LOSS) 38,366,957
NET INCREASE (DECREASE) IN $ 38,828,476
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION Sales $ 420,032
charges paid to FDC
Sales charges - Retained by $ 420,032
FDC
Expense Reductions $ 8,105
Directed brokerage
arrangements
Transfer agent credits 1,359
$ 9,464
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
INCREASE (DECREASE) IN NET SIX MONTHS ENDED APRIL 30, YEAR ENDED OCTOBER 31, 1999
ASSETS 2000 (UNAUDITED)
Operations Net investment $ 461,519 $ 2,362,496
income
Net realized gain (loss) 11,470,514 9,831,552
Change in net unrealized 26,896,443 35,812,522
appreciation (depreciation)
NET INCREASE (DECREASE) IN 38,828,476 48,006,570
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (2,289,574) (4,312,427)
from net investment income
Share transactions Net 144,627,312 89,140,338
proceeds from sales of shares
Reinvestment of distributions 2,213,416 4,182,802
Cost of shares redeemed (116,742,451) (116,955,228)
NET INCREASE (DECREASE) IN 30,098,277 (23,632,088)
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
Redemption fees 813,619 631,730
TOTAL INCREASE (DECREASE) 67,450,798 20,693,785
IN NET ASSETS
NET ASSETS
Beginning of period 161,517,604 140,823,819
End of period (including $ 228,968,402 $ 161,517,604
undistributed net investment
income of $20,883 and
$1,848,938, respectively)
OTHER INFORMATION
Shares
Sold 8,304,339 7,169,572
Issued in reinvestment of 129,289 415,738
distributions
Redeemed (6,493,880) (9,914,200)
Net increase (decrease) 1,939,748 (2,328,890)
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SIX MONTHS ENDED APRIL 30, 2000 YEARS ENDED OCTOBER 31,
SELECTED PER-SHARE DATA (UNAUDITED) 1999 1998 1997 1996 E
Net asset value, beginning of $ 14.15 $ 10.25 $ 11.06 $ 12.97 $ 10.00
period
Income from Investment
Operations
Net investment income D .03 .19 .31 .17 .29
Net realized and unrealized 3.08 3.98 (1.10) (1.95) 2.64
gain (loss)
Total from investment 3.11 4.17 (.79) (1.78) 2.93
operations
Less Distributions
From net investment income (.17) (.32) (.06) (.14) (.01)
From net realized gain - - - (.08) -
Total distributions (.17) (.32) (.06) (.22) (.01)
Redemption fees added to paid .06 .05 .04 .09 .05
in capital
Net asset value, end of period $ 17.15 $ 14.15 $ 10.25 $ 11.06 $ 12.97
TOTAL RETURN B, C 22.40% 42.44% (6.85)% (13.36)% 29.83%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 228,968 $ 161,518 $ 140,824 $ 177,416 $ 109,880
(000 omitted)
Ratio of expenses to average 1.24% A 1.34% 1.41% 1.31% 1.62%
net assets
Ratio of expenses to average 1.23% A, F 1.32% F 1.40% F 1.31% 1.62%
net assets after expense
reductions
Ratio of net investment .38% A 1.59% 3.07% 1.18% 2.53%
income to average net assets
Portfolio turnover rate 91% A 84% 109% 174% 118%
A ANNUALIZED
B THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
D NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES
OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD NOVEMBER 1,
1995 (COMMENCEMENT OF
OPERATIONS) TO OCTOBER
31,1996.
F FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
</TABLE>
JAPAN
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value). If Fidelity had not reimbursed certain fund
expenses, the life of fund total returns would have been lower.
CUMULATIVE TOTAL RETURNS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PERIODS ENDED OCTOBER 31, 1994 PAST 6 MONTHS PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
FIDELITY JAPAN 11.43% 77.59% 97.68% 163.17%
FIDELITY JAPAN (INCL. 3.00% 8.09% 72.26% 91.75% 155.28%
SALES CHARGE)
TOPIX 2.10% 37.05% 0.25% 45.86%
Japanese Funds Average 5.46% 52.96% 55.96% n/a
</TABLE>
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or since the fund started on September 15, 1992. For example, if
you had invested $1,000 in a fund that had a 5% return over the past
year, the value of your investment would be $1,050. You can compare
the fund's returns to the performance of the Tokyo Stock Exchange
Index (TOPIX) - a market capitalization-weighted index of over 1,400
stocks traded in the Japanese market. To measure how the fund's
performance stacked up against its peers, you can compare it to the
Japanese funds average, which reflects the performance of mutual funds
with similar objectives tracked by Lipper Inc. The past six months
average represents a peer group of 48 mutual funds. These benchmarks
include reinvested dividends and capital gains, if any, and exclude
the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1994 PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
FIDELITY JAPAN 77.59% 14.60% 13.53%
FIDELITY JAPAN (INCL. 3.00% 72.26% 13.91% 13.07%
SALES CHARGE)
TOPIX 37.05% 0.05% 5.07%
Japanese Funds Average 52.96% 7.78% n/a
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
Japan Fund TOPIX
00350 TK001
1992/09/15 9700.00 10000.00
1992/09/30 9641.80 9815.42
1992/10/31 9544.80 9336.12
1992/11/30 9641.80 9576.86
1992/12/31 9661.20 9437.20
1993/01/31 9748.50 9388.21
1993/02/28 10301.40 9815.57
1993/03/31 11484.80 11253.41
1993/04/30 13036.80 13170.39
1993/05/31 13405.40 13966.69
1993/06/30 12610.00 13389.70
1993/07/31 13453.90 14330.57
1993/08/31 13686.70 14650.81
1993/09/30 13318.10 13889.46
1993/10/31 12949.50 13636.41
1993/11/30 11252.00 11429.98
1993/12/31 11637.09 11715.04
1994/01/31 13010.29 13586.06
1994/02/28 13621.71 14249.19
1994/03/31 13391.17 13845.83
1994/04/30 13701.90 14386.73
1994/05/31 14082.78 14648.69
1994/06/30 14934.77 15465.45
1994/07/31 14443.62 14910.88
1994/08/31 14393.51 14947.34
1994/09/30 14042.69 14552.59
1994/10/31 14303.30 14937.45
1994/11/30 13331.03 14052.07
1994/12/31 13552.55 14299.84
1995/01/31 12387.96 13546.80
1995/02/28 11810.82 12780.10
1995/03/31 12758.98 13884.10
1995/04/30 12913.57 14548.67
1995/05/31 12181.84 13609.31
1995/06/30 12016.94 12960.37
1995/07/31 12820.82 13960.65
1995/08/31 12769.29 13417.71
1995/09/30 12738.37 13428.96
1995/10/31 12449.80 12721.44
1995/11/30 12594.08 13464.74
1995/12/31 13263.98 14067.55
1996/01/31 13171.23 13932.57
1996/02/29 12810.51 13709.11
1996/03/31 13171.23 14169.24
1996/04/30 14016.33 15121.58
1996/05/31 13511.33 14389.30
1996/06/30 13748.37 14458.38
1996/07/31 13068.16 13756.75
1996/08/31 12573.47 13177.79
1996/09/30 12862.04 13557.37
1996/10/31 12037.55 12655.38
1996/11/30 12336.43 12756.39
1996/12/31 11779.52 11779.59
1997/01/31 10892.44 10516.37
1997/02/28 11181.26 10724.66
1997/03/31 10995.59 10331.19
1997/04/30 11542.28 10584.92
1997/05/31 12872.89 11901.06
1997/06/30 13574.29 12672.60
1997/07/31 13935.31 12178.72
1997/08/31 12295.26 11093.36
1997/09/30 12439.66 10753.27
1997/10/31 11449.44 9937.19
1997/11/30 11036.85 9188.53
1997/12/31 10515.02 8470.67
1998/01/31 11186.63 9376.43
1998/02/28 11008.24 9454.41
1998/03/31 10305.14 8817.25
1998/04/30 10777.37 8701.22
1998/05/31 10441.56 8293.03
1998/06/30 10462.55 8346.71
1998/07/31 10724.90 8236.34
1998/08/31 9633.52 7389.77
1998/09/30 9738.46 7235.42
1998/10/31 10588.47 8404.64
1998/11/30 11312.56 8804.35
1998/12/31 11890.92 9128.11
1999/01/31 11796.21 9173.65
1999/02/28 11722.55 8955.23
1999/03/31 13469.36 10158.76
1999/04/30 14374.33 10642.34
1999/05/31 13795.57 10165.67
1999/06/30 16100.09 11129.49
1999/07/31 18141.54 12264.80
1999/08/31 19793.64 12654.46
1999/09/30 21287.90 13484.72
1999/10/31 22908.43 14285.26
1999/11/30 26054.79 15321.20
1999/12/31 29260.21 16055.55
2000/01/31 27147.21 15184.59
2000/02/29 28455.77 14944.99
2000/03/31 28112.54 15893.59
2000/04/28 25527.60 14585.52
IMATRL PRASUN SHR__CHT 20000430 20000524 093157 R00000000000095
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Japan Fund on September 15, 1992, when the fund
started, and the current 3.00% sales charge was paid. As the chart
shows, by April 30, 2000, the value of the investment would have grown
to $25,528 - a 155.28% increase on the initial investment. For
comparison, look at how the Tokyo Stock Exchange Index did over the
same period. With dividends and capital gains, if any, reinvested, the
same $10,000 would have been $14,586 - a 45.86% increase.
UNDERSTANDING PERFORMANCE
Many markets around the globe offer the
potential for significant growth over time; however,
investing in foreign markets means assuming greater
risks than investing in the United States. Factors like
changes in a country's financial markets, its local
political and economic climate, and the fluctuating
value of its currency create these risks. For these
reasons an international fund's performance may
be more volatile than a fund that invests exclusively
in the United States. Past performance is no
guarantee of future results and you may have a
gain or loss when you sell your shares.
(checkmark)
JAPAN
FUND TALK: THE MANAGER'S OVERVIEW
(PORTFOLIO MANAGER PHOTO)
An interview with
Brenda Reed,
Portfolio Manager of Fidelity Japan Fund
Q. HOW DID THE FUND PERFORM, BRENDA?
A. The fund managed to finish well ahead of its benchmarks in an
increasingly volatile market environment. For the six months that
ended April 30, 2000, the fund returned 11.43%, beating the Tokyo
Stock Exchange Index (TOPIX) and the Japanese funds average tracked by
Lipper Inc., which had respective returns of 2.10% and 5.46%. For the
12 months that ended April 30, 2000, the fund returned 77.59%. By
comparison, the index and the peer average
returned 37.05% and 52.96%, respectively.
Q. WHY DID THE FUND BEAT THE INDEX AND ITS PEERS DURING THE SIX-MONTH
PERIOD?
A. Most of the fund's relative outperformance occurred in the final
two months of 1999, when stock markets worldwide staged a powerful but
narrow rally led by the market sectors representing the new economy -
technology, media and telecommunications. Favorable stock selection
and overweightings in these critical sectors enabled the fund to pull
ahead of the index and the average by a wide margin. Unfortunately,
new economy stocks gave up much of their gains during the rest of the
period, while cyclical and defensive stocks staged a comeback. I
rotated some money into these rebounding sectors, but technology
remained the fund's largest sector allocation - 23.2% of net assets -
at the end of the period. I couldn't see enough long-term growth
potential in cyclical and defensive stocks to make a radical
readjustment in the fund's focus.
Q. WITHIN TECHNOLOGY AND TELECOMMUNICATIONS, WHERE DID YOU CONCENTRATE
THE FUND'S INVESTMENTS?
A. I focused mainly on two industries. First, I emphasized companies
that make components for cellular phones. These companies have
extremely cost-efficient operations, and they also benefited from the
ability to raise prices due to healthy worldwide demand. The other
industry of interest to me was factory automation. The robust recovery
in Southeast Asia, where Japanese companies making automation
equipment do much of their business, boosted revenue and earnings
prospects for the sector.
Q. WHAT STOCKS DID WELL FOR THE FUND?
A. Furukawa Electric was a key contributor and represented my biggest
overweighted position relative to the index. The company makes
fiber-optic cable, but the most exciting aspect of its business is WDM
- wave division multiplexing. WDM involves using lasers and mirrors to
split light into its component parts and increase the capacity of
fiber-optic pathways. In addition, the company has significant
holdings of U.S. stock JDS Uniphase, to which it also is a supplier.
Another solid performer was Toyota Motor Corp., which saw strong
growth in U.S. car sales. Investors also responded positively to
Toyota's recent move to invest in the cellular telecommunications
area.
Q. WHAT STOCKS WERE DISAPPOINTING?
A. Cellular holding Hikari Tsushin, formerly a standout performer, ran
into several problems during the period. The company's rapid growth
occurred without sufficiently tight management controls, resulting in
loose accounting practices at some stores. Furthermore, although the
cellular market in Japan continued to boom, growth slowed from the
unsustainably high levels of the past year or two. Finally, the
company`s president was the victim of some extremely negative press
coverage, much of which amounted to personal attacks of questionable
credibility. Nonetheless, I sold much of the fund's holdings of Hikari
Tsushin for valuation reasons during the period. In retrospect, I wish
I'd sold more of it earlier.
Q. WHAT'S YOUR OUTLOOK, BRENDA?
A. Earlier in the most recent fiscal year, Japan experienced two
consecutive quarters of negative GDP, which meant that the country had
entered a recession according to the traditional definition of that
term. However, due to the confusing way in which the government
measures consumer spending, most analysts believe that economic growth
for that period was understated. There are currently many signs of
improvement - for example, healthy sales of computers and cellular
phones, increased capital spending, rising employment and robust
growth in international travel. These overall mixed signals for the
economy make stock selection difficult. As a result, my short-term
focus will be on keeping the fund's sector weightings close to those
of TOPIX and emphasizing strong earnings potential - primarily through
either globally competitive companies or well-managed domestic
companies that could be merger and acquisition targets.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET OR OTHER CONDITIONS. FOR MORE INFORMATION, SEE PAGE 3.
NOTE TO SHAREHOLDERS: Effective June 16, 2000, Yoko Ishibashi will
become Portfolio Manager of Fidelity Japan Fund.
FUND FACTS
GOAL: long-term growth of capital by investing mainly in equity
securities of Japanese issuers
FUND NUMBER: 350
TRADING SYMBOL: FJPNX
START DATE: September 15, 1992
SIZE: as of April 30, 2000, more than
$880 million
MANAGER: Brenda Reed, since 1998; associate manager, Fidelity Japan
Fund, October-December 1998; manager, Fidelity Select Automotive
Portfolio, 1994-1996; Fidelity Select Air Transportation Portfolio,
1992-1994; joined Fidelity in 1992
(checkmark)
JAPAN
INVESTMENT CHANGES
AS OF APRIL 30, 2000
United States 4.9%
Row: 1, Col: 1, Value: 95.09999999999999
Row: 1, Col: 2, Value: 4.9
Japan 95.1%
GEOGRAPHIC DIVERSIFICATION (%
OF FUND'S NET ASSETS)
AS OF OCTOBER 31,1999
United States 4.5%
Row: 1, Col: 1, Value: 95.5
Row: 1, Col: 2, Value: 4.5
Japan 95.5%
<TABLE>
<CAPTION>
<S> <C> <C>
ASSET ALLOCATION
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Stocks 95.1 95.5
Short-Term Investments and 4.9 4.5
Net Other Assets
TOP TEN STOCKS BY ISSUER AS
OF APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
NTT DoCoMo, Inc. (Cellular) 8.2 5.4
Toyota Motor Corp. (Autos, 4.2 2.2
Tires, & Accessories)
Furukawa Electric Co. Ltd. 3.0 1.1
(Electrical Equipment)
Sony Corp. (Consumer 2.9 1.5
Electronics)
Rohm Co. Ltd. (Electronics) 2.7 1.4
Takeda Chemical Industries 2.6 2.3
Ltd. (Drugs &
Pharmaceuticals)
The Suruga Bank Ltd. (Banks) 2.5 0.1
Kyocera Corp. (Electronics) 2.4 1.9
Softbank Corp. (Computers & 2.4 2.2
Office Equipment)
Murata Manufacturing Co. Ltd. 2.1 0.0
(Electrical Equipment)
33.0 18.1
TOP TEN MARKET SECTORS AS OF
APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Technology 23.2 23.9
Utilities 12.4 13.5
Durables 12.3 12.6
Industrial Machinery & 9.7 6.3
Equipment
Finance 9.1 12.8
Health 8.3 6.9
Basic Industries 5.7 6.7
Media & Leisure 4.3 2.5
Services 2.8 1.8
Retail & Wholesale 2.3 4.5
</TABLE>
JAPAN
INVESTMENTS APRIL 30, 2000 (UNAUDITED)
Showing Percentage of Net Assets
COMMON STOCKS - 95.1%
SHARES VALUE (NOTE 1)
BASIC INDUSTRIES - 5.7%
CHEMICALS & PLASTICS - 5.2%
Asahi Chemical Industry Co. 1,121,000 $ 6,447,771
Ltd. (a)
Hitachi Chemical Co. Ltd. 218,000 5,563,899
Kaneka Corp. 666,000 8,560,570
Mitsubishi Chemical Corp. 1,370,000 5,485,574
Nippon Zeon Co. Ltd. 1,062,000 6,579,804
Nissan Chemical Industries 754,000 4,057,962
Co. Ltd.
Shin-Etsu Chemical Co. Ltd. 164,000 8,659,515
45,355,095
PAPER & FOREST PRODUCTS - 0.5%
Nippon Paper Industries Co. 724,000 4,579,397
Ltd.
TOTAL BASIC INDUSTRIES 49,934,492
CONSTRUCTION & REAL ESTATE -
2.0%
BUILDING MATERIALS - 1.1%
Nippon Sheet Glass Co. Ltd. 1,055,000 9,365,637
CONSTRUCTION - 0.5%
Daito Trust Construction Co. 300,000 4,716,109
REAL ESTATE - 0.4%
Mitsubishi Estate Co. Ltd. 305,000 3,426,808
TOTAL CONSTRUCTION & REAL 17,508,554
ESTATE
DURABLES - 12.3%
AUTOS, TIRES, & ACCESSORIES -
7.1%
Honda Motor Co. Ltd. (a) 210,000 9,292,500
Tokai Corp. 440,000 4,841,872
Toyoda Gosei Co. Ltd. 207,000 11,963,658
Toyota Motor Corp. 738,000 36,876,937
62,974,967
CONSUMER ELECTRONICS - 5.2%
Matsushita Electric 344,000 9,167,600
Industrial Co. Ltd.
Pioneer Corp. 196,000 5,346,773
Sharp Corp. 294,000 5,668,485
Sony Corp. 92,900 10,480,281
Sony Corp. New 130,400 14,710,750
45,373,889
TOTAL DURABLES 108,348,856
FINANCE - 9.1%
BANKS - 5.8%
Bank of Tokyo-Mitsubishi Ltd. 471,000 6,071,518
Dai-Ichi Kangyo Bank Ltd. 1,469,000 12,171,481
Fuji Bank Ltd. 587,000 4,885,334
Sakura Bank Ltd. 907,000 6,357,555
The Suruga Bank Ltd. 1,274,000 21,794,895
51,280,783
SHARES VALUE (NOTE 1)
SECURITIES INDUSTRY - 3.3%
Daiwa Securities Group, Inc. 903,000 $ 13,777,973
Nikko Securities Co. Ltd. 421,000 4,963,704
Nomura Securities Co. Ltd. 392,000 9,859,811
28,601,488
TOTAL FINANCE 79,882,271
HEALTH - 8.3%
DRUGS & PHARMACEUTICALS - 7.2%
Fujisawa Pharmaceutical Co. 414,000 15,504,901
Ltd.
Sankyo Co. Ltd. 155,000 3,411,319
Takeda Chemical Industries 343,000 22,551,600
Ltd.
Yamanouchi Pharmaceutical Co. 289,000 15,259,756
Ltd.
Yoshitomi Pharmaceutical 470,000 6,606,251
Industries Ltd.
63,333,827
MEDICAL EQUIPMENT & SUPPLIES
- 1.1%
Hoya Corp. 100,000 10,171,999
TOTAL HEALTH 73,505,826
INDUSTRIAL MACHINERY &
EQUIPMENT - 9.7%
ELECTRICAL EQUIPMENT - 7.7%
Furukawa Electric Co. Ltd. 1,905,000 26,406,464
Mitsubishi Electric Corp. 615,000 5,249,168
Murata Manufacturing Co. Ltd. 96,000 18,642,500
Omron Corp. 649,000 17,644,350
67,942,482
INDUSTRIAL MACHINERY &
EQUIPMENT - 2.0%
SMC Corp. 44,000 8,747,919
THK Co. Ltd. 214,400 9,020,899
17,768,818
TOTAL INDUSTRIAL MACHINERY & 85,711,300
EQUIPMENT
MEDIA & LEISURE - 4.3%
BROADCASTING - 2.8%
Fuji Television Network, Inc. 587 9,770,668
Tokyo Broadcasting System, 347,000 15,081,376
Inc.
24,852,044
LEISURE DURABLES & TOYS - 0.8%
Nintendo Co. Ltd. 44,400 7,390,420
PUBLISHING - 0.4%
Kadokawa Shoten Publishing 21,000 3,398,372
Co. Ltd.
RESTAURANTS - 0.3%
Saizeriya Co. Ltd. 30,000 2,330,313
TOTAL MEDIA & LEISURE 37,971,149
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
NONDURABLES - 1.7%
BEVERAGES - 0.5%
Fuji Coca-Cola Bottling Co. 91,000 $ 862,539
Ltd.
Kirin Beverage Corp. 200,000 3,957,832
4,820,371
FOODS - 0.6%
Ajinomoto Co., Inc. 489,000 5,584,566
HOUSEHOLD PRODUCTS - 0.6%
Lion Corp. 153,000 629,601
Shiseido Co. Ltd. 357,000 4,509,543
5,139,144
TOTAL NONDURABLES 15,544,081
RETAIL & WHOLESALE - 2.3%
APPAREL STORES - 0.8%
World Co. Ltd. 64,000 4,805,622
World Co. Ltd. New 32,000 2,402,811
7,208,433
GENERAL MERCHANDISE STORES -
1.1%
Seven Eleven Japan Co. Ltd. 79,000 9,716,109
RETAIL & WHOLESALE,
MISCELLANEOUS - 0.4%
Don Quijote Co. Ltd. 19,600 3,316,812
TOTAL RETAIL & WHOLESALE 20,241,354
SERVICES - 2.8%
ADVERTISING - 1.1%
Asatsu-DK, Inc. 228,000 9,403,366
SERVICES - 1.7%
Nippon System Development Co. 92,160 8,786,477
Ltd.
Secom Co. Ltd. 50,000 4,189,014
Shinki Co. Ltd. 85,000 2,020,067
14,995,558
TOTAL SERVICES 24,398,924
TECHNOLOGY - 23.2%
COMMUNICATIONS EQUIPMENT - 0.7%
NEC Corp. 222,000 6,035,509
COMPUTER SERVICES & SOFTWARE
- 5.2%
Capcom Co. Ltd. 25,949 959,830
Fujitsu Ltd. 584,000 16,525,245
Hitachi Information Systems 242,000 9,376,549
Co. Ltd.
KOEI Co. Ltd. 19,080 684,579
Konami Co. Ltd. 49,900 2,911,679
Net One Systems Co. Ltd. 142 4,845,386
Oracle Corp. Japan 2,900 2,333,087
SHARES VALUE (NOTE 1)
Square Co. Ltd. 33,000 $ 2,426,022
Trend Micro, Inc. (a) 35,500 5,318,106
45,380,483
COMPUTERS & OFFICE EQUIPMENT
- 5.6%
Canon, Inc. 250,000 11,609,375
Oki Electric Industry Co. 885,000 6,219,715
Ltd. (a)
Ricoh Co. Ltd. 514,000 10,837,063
Softbank Corp. 19,300 4,747,365
Softbank Corp. New 64,200 15,791,751
49,205,269
ELECTRONIC INSTRUMENTS - 0.7%
Tokyo Seimitsu Co. Ltd. 62,600 6,541,335
ELECTRONICS - 10.5%
Hirose Electric Co. Ltd. 48,600 5,869,391
Hosiden Corp. 113,000 5,266,506
Kyocera Corp. 128,200 21,289,212
Mitsumi Electric Co. Ltd. 117,000 4,825,411
Nichicon Corp. 427,000 11,450,897
Nidec Corp. 40,100 2,781,117
Nidec Corp. New 40,100 2,781,117
Nitto Denko Corp. 248,000 9,723,691
Rohm Co. Ltd. 69,900 23,399,112
Toko, Inc. 573,000 4,768,818
92,155,272
PHOTOGRAPHIC EQUIPMENT - 0.5%
Fuji Photo Film Co. Ltd. 93,000 3,813,000
Konica Corp. (a) 180,000 867,209
4,680,209
TOTAL TECHNOLOGY 203,998,077
TRANSPORTATION - 1.3%
AIR TRANSPORTATION - 0.7%
Nippon Express Co. Ltd. 959,000 6,048,067
RAILROADS - 0.6%
West Japan Railway Co. 1,566 5,387,017
TOTAL TRANSPORTATION 11,435,084
UTILITIES - 12.4%
CELLULAR - 8.3%
Hikari Tsushin, Inc. 8,500 1,226,188
NTT DeCoMo, Inc. 1,677 55,982,709
NTT DeCoMo, Inc. (c) 472 15,756,612
72,965,509
TELEPHONE SERVICES - 4.1%
DDI Corp. 970 11,122,619
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
UTILITIES - CONTINUED
TELEPHONE SERVICES - CONTINUED
KDD Corp. 85,000 $ 9,840,947
Nippon Telegraph & Telephone 1,229 15,228,962
Corp.
36,192,528
TOTAL UTILITIES 109,158,037
TOTAL COMMON STOCKS 837,638,005
(Cost $559,489,979)
CASH EQUIVALENTS - 9.7%
Central Cash Collateral Fund, 37,285,015 37,285,015
5.94% (b)
Taxable Central Cash Fund, 47,729,861 47,729,861
5.77% (b)
TOTAL CASH EQUIVALENTS 85,014,876
(Cost $85,014,876)
TOTAL INVESTMENT PORTFOLIO - 922,652,881
104.8%
(Cost $644,504,855)
NET OTHER ASSETS - (4.8)% (42,058,634)
NET ASSETS - 100% $ 880,594,247
LEGEND
(a) Non-income producing
(b) The rate quoted is the annualized seven-day yield of the fund at
period end.
(c) Security exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may be resold in transactions
exempt from registration, normally to qualified institutional buyers.
At the period end, the value of these securities amounted to
$15,756,612 or 1.8% of net assets.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $509,977,386 and $632,466,581, respectively.
The fund placed a portion of its portfolio transactions with brokerage
firms which are affiliates of Fidelity Management & Research Company.
The commissions paid to these affiliated firms were $33,469 for the
period.
The fund participated in the security lending program. At period end,
the value of securities loaned amounted to $35,869,535. The fund
received cash collateral of $37,285,015 which was invested in cash
equivalents and U.S. Treasury Obligations valued at $2,212,795. Cash
collateral includes $1,034,400 received for unsettled security loans.
The fund participated in the interfund lending program as a borrower.
The average daily loan balance during the period for which loans were
outstanding amounted to $62,431,000. The weighted average interest
rate was 5.92%. Interest expense includes $10,268 paid under the
interfund lending program.
The fund participated in the bank borrowing program. The average daily
loan balance during the period for which loans were outstanding
amounted to $21,998,000. The weighted average interest rate was 6.04%.
Interest expense includes $3,694 paid under the bank borrowing
program.
INCOME TAX INFORMATION
At April 30, 2000, the aggregate cost of investment securities for
income tax purposes was $644,706,450. Net unrealized appreciation
aggregated $277,946,431, of which $303,195,203 related to appreciated
investment securities and $25,248,772 related to depreciated
investment securities.
At October 31, 1999, the fund had a capital loss carryforward of
approximately $44,939,000 of which $11,008,000 and $33,931,000 will
expire on October 31, 2005 and 2006, respectively.
JAPAN
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000 (UNAUDITED)
ASSETS
Investment in securities, at $ 922,652,881
value (cost $644,504,855) -
See accompanying schedule
Foreign currency held at 44
value (cost $44)
Receivable for investments sold
Regular delivery 18,412,327
Delayed delivery 2,127,894
Receivable for fund shares 539,185
sold
Dividends receivable 1,561,716
Interest receivable 103,206
Redemption fees receivable 6,273
Other receivables 36,512
TOTAL ASSETS 945,440,038
LIABILITIES
Payable for investments $ 24,888,734
purchased
Payable for fund shares 1,704,837
redeemed
Accrued management fee 639,490
Other payables and accrued 327,715
expenses
Collateral on securities 37,285,015
loaned, at value
TOTAL LIABILITIES 64,845,791
NET ASSETS $ 880,594,247
Net Assets consist of:
Paid in capital $ 514,723,225
Distributions in excess of (10,302,669)
net investment income
Accumulated undistributed net 98,021,846
realized gain (loss) on
investments and foreign
currency transactions
Net unrealized appreciation 278,151,845
(depreciation) on
investments and assets and
liabilities in foreign
currencies
NET ASSETS, for 37,003,096 $ 880,594,247
shares outstanding
NET ASSET VALUE and $23.80
redemption price per share
($880,594,247 (divided by)
37,003,096 shares)
Maximum offering price per $24.54
share (100/97.00 of $23.80)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30,
2000 (UNAUDITED)
INVESTMENT INCOME $ 1,928,601
Dividends
Interest 846,314
Security lending 311,173
3,086,088
Less foreign taxes withheld (289,656)
TOTAL INCOME 2,796,432
EXPENSES
Management fee Basic fee $ 3,838,273
Performance adjustment 406,197
Transfer agent fees 1,114,907
Accounting fees and expenses 272,017
Non-interested trustees' 2,185
compensation
Custodian fees and expenses 183,070
Registration fees 141,313
Audit 12,422
Legal 13,089
Interest 13,962
Miscellaneous 337
Total expenses before 5,997,772
reductions
Expense reductions (37,646) 5,960,126
NET INVESTMENT INCOME (LOSS) (3,163,694)
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities 143,277,289
Foreign currency transactions (105,378) 143,171,911
Change in net unrealized
appreciation (depreciation)
on:
Investment securities (34,282,948)
Assets and liabilities in 31,439 (34,251,509)
foreign currencies
NET GAIN (LOSS) 108,920,402
NET INCREASE (DECREASE) IN $ 105,756,708
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION Sales $ 1,596,289
charges paid to FDC
Sales charges - Retained by $ 1,595,788
FDC
Expense Reductions $ 30,106
Directed brokerage
arrangements
Transfer agent credits 7,540
$ 37,646
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
INCREASE (DECREASE) IN NET SIX MONTHS ENDED APRIL 30, YEAR ENDED OCTOBER 31, 1999
ASSETS 2000 (UNAUDITED)
Operations Net investment $ (3,163,694) $ (2,120,158)
income (loss)
Net realized gain (loss) 143,171,911 63,006,754
Change in net unrealized (34,251,509) 308,966,890
appreciation (depreciation)
NET INCREASE (DECREASE) IN 105,756,708 369,853,486
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (13,253,040) -
From net investment income
In excess of net investment (7,138,975) (833,682)
income
TOTAL DISTRIBUTIONS (20,392,015) (833,682)
Share transactions Net 466,805,039 547,523,917
proceeds from sales of shares
Reinvestment of distributions 19,730,583 804,286
Cost of shares redeemed (584,728,304) (292,716,488)
NET INCREASE (DECREASE) IN (98,192,682) 255,611,715
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
Redemption fees 2,181,189 1,215,013
TOTAL INCREASE (DECREASE) (10,646,800) 625,846,532
IN NET ASSETS
NET ASSETS
Beginning of period 891,241,047 265,394,515
End of period (including $ 880,594,247 $ 891,241,047
under (over) distribution of
net investment income of
$(10,302,669) and
$13,253,040, respectively)
OTHER INFORMATION
Shares
Sold 18,877,745 34,652,174
Issued in reinvestment of 825,188 73,856
distributions
Redeemed (23,646,426) (20,092,286)
Net increase (decrease) (3,943,493) 14,633,744
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SIX MONTHS ENDED APRIL 30, 2000 YEARS ENDED OCTOBER 31,
SELECTED PER-SHARE DATA (UNAUDITED) 1999 1998 1997 1996
Net asset value, beginning of $ 21.77 $ 10.09 $ 11.10 $ 11.68 $ 12.08
period
Income from Investment
Operations
Net investment income (loss) (.07) D (.07) D (.04) D (.06) D (.02) D
Net realized and unrealized 2.51 11.74 (.81) (.55) (.40)
gain (loss)
Total from investment 2.44 11.67 (.85) (.61) (.42)
operations
Less Distributions
From net investment income (.30) - - - -
In excess of net investment (.16) (.03) (.18) (.01) -
income
From net realized gain - - - - -
Total distributions (.46) (.03) (.18) (.01) -
Redemption fees added to paid .05 .04 .02 .04 .02
in capital
Net asset value, end of period $ 23.80 $ 21.77 $ 10.09 $ 11.10 $ 11.68
TOTAL RETURN B, C 11.43% 116.35% (7.52)% (4.89)% (3.31)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 880,594 $ 891,241 $ 265,395 $ 255,555 $ 290,495
(000 omitted)
Ratio of expenses to average 1.15% A 1.24% 1.49% 1.42% 1.15%
net assets
Ratio of expenses to average 1.14% A, E 1.23% E 1.48% E 1.40% E 1.14% E
net assets after expense
reductions
Ratio of net investment (.61)% A (.47)% (.37)% (.54)% (.12)%
income (loss) to average net
assets
Portfolio turnover rate 101% A 79% 62% 70% 83%
A ANNUALIZED
B THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
D NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
E FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA 1995
Net asset value, beginning of $ 14.27
period
Income from Investment
Operations
Net investment income (loss) (.02)
Net realized and unrealized (1.89)
gain (loss)
Total from investment (1.91)
operations
Less Distributions
From net investment income -
In excess of net investment -
income
From net realized gain (.36)
Total distributions (.36)
Redemption fees added to paid .08
in capital
Net asset value, end of period $ 12.08
TOTAL RETURN B, C (12.96)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 343,981
(000 omitted)
Ratio of expenses to average 1.15%
net assets
Ratio of expenses to average 1.15%
net assets after expense
reductions
Ratio of net investment (.06)%
income (loss) to average net
assets
Portfolio turnover rate 86%
A ANNUALIZED
B THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
D NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
E FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
</TABLE>
JAPAN SMALLER COMPANIES
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value).
CUMULATIVE TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1994 PAST 6 MONTHS PAST 1 YEAR LIFE OF FUND
FIDELITY JAPAN SMALLER -4.83% 73.01% 96.96%
COMPANIES
FIDELITY JAPAN SMALLER -7.68% 67.82% 91.05%
COMPANIES (INCL. 3.00%
SALES CHARGE)
TOPIX Second Section -5.72% 54.07% 28.67%
Japanese Funds Average 5.46% 52.96% n/a
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year or since
the fund started on November 1, 1995. For example, if you had invested
$1,000 in a fund that had a 5% return over the past year, the value of
your investment would be $1,050. You can compare the fund's returns to
the performance of the Tokyo Stock Exchange Second Section Stock Price
Index (TOPIX Second Section) - a market capitalization-weighted index
that reflects the performance of the smaller, less established and
newly listed companies of the Tokyo Stock Exchange. To measure how the
fund's performance stacked up against its peers, you can compare the
fund's performance to the Japanese funds average, which reflects the
performance of mutual funds with similar objectives tracked by Lipper
Inc. The past six months average represents a peer group of 48 mutual
funds. These benchmarks include reinvested dividends and capital
gains, if any, and exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1994 PAST 1 YEAR LIFE OF FUND
FIDELITY JAPAN SMALLER 73.01% 16.26%
COMPANIES
FIDELITY JAPAN SMALLER 67.82% 15.48%
COMPANIES (INCL. 3.00%
SALES CHARGE)
TOPIX Second Section 54.07% 5.76%
Japanese Funds Average 52.96% n/a
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
Japan Smaller Companies TOPIX 2nd Section Index
00360 EX005
1995/11/01 9700.00 10000.00
1995/11/30 9661.20 10335.33
1995/12/31 10262.60 10975.96
1996/01/31 10107.40 10804.92
1996/02/29 9894.00 10597.01
1996/03/31 10272.30 10646.28
1996/04/30 11028.90 11708.81
1996/05/31 10602.10 11395.42
1996/06/30 10679.70 11315.66
1996/07/31 10185.00 10994.68
1996/08/31 9709.70 10749.69
1996/09/30 9632.10 10480.50
1996/10/31 8856.10 9863.12
1996/11/30 8477.80 9534.70
1996/12/31 7738.69 8704.07
1997/01/31 7036.95 7918.69
1997/02/28 7027.20 7943.57
1997/03/31 6637.34 7373.48
1997/04/30 6666.58 7289.86
1997/05/31 7748.44 8537.79
1997/06/30 8099.31 8954.32
1997/07/31 7797.17 8282.33
1997/08/31 6773.79 7335.82
1997/09/30 6471.65 6623.67
1997/10/31 6305.96 6488.83
1997/11/30 5643.20 5546.61
1997/12/31 5389.64 5109.59
1998/01/31 5946.18 5889.51
1998/02/28 5985.23 6039.62
1998/03/31 5467.75 5636.64
1998/04/30 5887.60 5528.93
1998/05/31 5770.43 5257.19
1998/06/30 5721.61 5270.87
1998/07/31 5926.65 5282.13
1998/08/31 5311.53 4839.95
1998/09/30 5243.18 4632.10
1998/10/31 5868.07 5151.68
1998/11/30 6356.26 5552.29
1998/12/31 7069.02 5866.27
1999/01/31 7537.68 5940.63
1999/02/28 8221.15 6193.52
1999/03/31 10027.46 7536.45
1999/04/30 11042.90 8351.16
1999/05/31 10554.71 8063.28
1999/06/30 13923.24 10038.60
1999/07/31 15504.98 11213.77
1999/08/31 17623.73 12577.28
1999/09/30 19371.46 13567.61
1999/10/31 20074.46 13647.33
1999/11/30 23277.00 14819.48
1999/12/31 23851.92 14547.56
2000/01/31 22829.84 14309.93
2000/02/29 24834.70 15608.20
2000/03/31 22485.87 14832.22
2000/04/28 19105.13 12866.85
IMATRL PRASUN SHR__CHT 20000430 20000531 121512 R00000000000057
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Japan Smaller Companies Fund on November 1, 1995,
when the fund started, and the current 3.00% sales charge was paid. As
the chart shows, by April 30, 2000, the value of the investment would
have been $19,105 - a 91.05% increase on the initial investment. For
comparison, look at how the Tokyo Stock Exchange Second Section Stock
Price Index did over the same period. With dividends and capital
gains, if any, reinvested, the same $10,000 would have been $12,867 -
a 28.67% increase.
UNDERSTANDING PERFORMANCE
Many markets around the globe offer the
potential for significant growth over time; however,
investing in foreign markets means assuming greater
risks than investing in the United States. Factors like
changes in a country's financial markets, its local
political and economic climate, and the fluctuating
value of its currency create these risks. For these
reasons an international fund's performance may
be more volatile than a fund that invests exclusively
in the United States. Past performance is no
guarantee of future results and you may have a
gain or loss when you sell your shares.
(checkmark)
JAPAN SMALLER COMPANIES
FUND TALK: THE MANAGER'S OVERVIEW
(PORTFOLIO MANAGER PHOTO)
An interview with
Kenichi Mizushita,
Portfolio Manager
of Fidelity Japan
Smaller Companies Fund
Q. HOW DID THE FUND PERFORM, KENICHI?
A. For the six-month period that ended April 30, 2000, the fund
returned -4.83%, besting the Tokyo Stock Exchange Second Section Stock
Price Index (TOPIX Second Section) return of -5.72%. By comparison,
the Japanese funds average - mainly large-cap funds - returned 5.46%,
according to Lipper Inc., during the same time period. For the 12
months that ended April 30, 2000, the fund returned 73.01%,
outperforming the TOPIX Second Section index and the Japanese funds
average, which returned 54.07% and 52.96%, respectively.
Q. WHAT WAS THE INVESTING ENVIRONMENT LIKE DURING THE PAST SIX MONTHS?
A. For much of the six-month period, smaller-cap stocks performed well
versus larger-cap securities, until the U.S. stock market correction
in March. Following the U.S. market downfall - NASDAQ's in particular
- Japanese small-cap stocks took a more severe tumble than large-caps.
Japanese Internet stocks, highly valued like their counterparts in the
U.S., were hit particularly hard. Although the market environment
generally had been strong, with low interest rates and money flowing
into the market, good investment opportunities were hard to find when
the Japanese market followed the downward trend of U.S. stocks late in
the period.
Q. WHAT WAS YOUR STRATEGY IN THIS ENVIRONMENT?
A. Overall, I tried to avoid high valuation stocks. Toward the end of
the period, I began to take profits from high-priced technology
stocks, and bought more reasonably priced equities in the sector. I
also increased the fund's exposure to manufacturing companies. Most
small-cap stocks I purchased were new economy stocks and newly listed
companies - IPOs. In fact, about 70% of the fund's assets are
currently invested in companies newly listed within the past five
years. So, when I made changes to the fund's portfolio, the types of
companies were relatively similar, but more reasonably priced. Because
new companies tend to be the ones that are growing faster, I tried to
find them on their way up.
Q. WHICH STOCKS PERFORMED WELL?
A. Oracle Japan performed very well as demand grew for its Internet
database product. The company also benefited from its move to the
Tokyo Stock Exchange First Section from the OTC exchange. Since Oracle
accounts for nearly 2% of the Exchange, index-type funds must hold it
in their portfolios, and this significantly boosted demand for the
stock. Sony benefited from the success of its Playstation 2 game
system, and successfully pursued a strategy of selling directly over
the Internet while sustaining growth by investing in a variety of
broadcasting companies in Japan. Tokyo Denpa, one of the fund's top
holdings, manufactures crystals used in electric machinery and mobile
phones and, with strong expansion of the mobile phone market and
increasing demand for components, the company enjoyed strong demand
for its products.
Q. WHICH STOCKS DETRACTED FROM THE FUND'S PERFORMANCE?
A. Hikari Tsushin performed poorly. The company, a distributor of
mobile phones, did not meet its sales targets and had very
disappointing earnings. Its share price came down significantly as a
result. Trend Micro, a maker of a computer anti-virus program, was
pulled down along with the rest of the Japanese technology companies
when the market corrected. However, the company is attractively valued
and has continued to grow, so I held on to this stock. Cosmetics
company Fancl also was hurt by the decline in the stock market, but
the company had good fundamentals and an attractive growth rate, so I
held on to the stock.
Q. WHAT'S YOUR OUTLOOK?
A. There is no real bad news, and some positive signs, in the Japanese
economy. The economy gradually is getting better, capital expenditures
have improved, corporate growth rates are showing improvement and
overall growth rates are expected to recover in 2000. Investor
sentiment is positive and the Japanese stock market has attracted a
great deal of interest. Market returns probably won't be as high as
last year's but should be more reasonable. In this environment, I will
focus on growth companies that are reasonably valued. I also will
continue to look for attractive newly listed companies and, with a new
NASDAQ Japan Exchange starting up in June, there should be a huge
number of IPOs to choose from.
FUND FACTS
GOAL: long-term growth of capital by investing
mainly in equity securities of Japanese issuers
with smaller market capitalizations
FUND NUMBER: 360
TRADING SYMBOL: FJSCX
START DATE: November 1, 1995
SIZE: as of April 30, 2000, more than $1.0
billion
MANAGER: Kenichi Mizushita, since 1996;
manager, several Fidelity Investments Japan,
Limited and institutional funds; joined Fidelity in
1985
(checkmark)
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET OR OTHER CONDITIONS. FOR MORE INFORMATION, SEE PAGE 3.
JAPAN SMALLER COMPANIES
INVESTMENT CHANGES
AS OF APRIL 30, 2000
United States 1.8%
Row: 1, Col: 1, Value: 98.2
Row: 1, Col: 2, Value: 1.8
Japan 98.2%
GEOGRAPHIC DIVERSIFICATION (%
OF FUND'S NET ASSETS)
AS OF OCTOBER 31,1999
United States 5.9%
Row: 1, Col: 1, Value: 94.09999999999999
Row: 1, Col: 2, Value: 5.9
Japan 94.1%
<TABLE>
<CAPTION>
<S> <C> <C>
ASSET ALLOCATION
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Stocks 98.2 94.1
Short-Term Investments and 1.8 5.9
Net Other Assets
TOP TEN STOCKS BY ISSUER AS
OF APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Funai Electric Co. Ltd. 5.1 3.0
(Consumer Electronics)
Toyoda Gosei Co. Ltd. 3.4 1.4
(Autos, Tires, & Accessories)
Hogy Medical Co. (Medical 3.4 1.1
Equipment & Supplies)
Sony Corp. (Consumer 3.3 0.0
Electronics)
Cosel Co. Ltd. (Electronic 3.1 1.2
Instruments)
Tokyo Seimitsu Co. Ltd. 2.9 2.7
(Electronic Instruments)
Misumi Corp. (Industrial 2.9 1.2
Machinery & Equipment)
Tokyo Denpa Co. Ltd. 2.7 0.7
(Electronics)
Yamada Denki Co. Ltd. (Retail 2.7 1.7
& Wholesale, Miscellaneous)
Union Tool Co. (Industrial 2.6 1.4
Machinery & Equipment)
32.1 14.4
TOP TEN MARKET SECTORS AS OF
APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Technology 26.2 23.0
Industrial Machinery & 15.4 7.0
Equipment
Retail & Wholesale 15.3 11.0
Durables 12.2 7.6
Nondurables 7.4 7.8
Media & Leisure 5.8 10.7
Services 5.0 7.2
Health 4.8 2.8
Construction & Real Estate 4.2 5.3
Finance 1.1 5.2
</TABLE>
JAPAN SMALLER COMPANIES
INVESTMENTS APRIL 30, 2000 (UNAUDITED)
Showing Percentage of Net Assets
COMMON STOCKS - 98.2%
SHARES VALUE (NOTE 1)
BASIC INDUSTRIES - 0.0%
IRON & STEEL - 0.0%
Hakudo Co. Ltd. 24,000 $ 261,883
Suncall Corp. 40,000 151,655
413,538
CONSTRUCTION & REAL ESTATE -
4.2%
BUILDING MATERIALS - 4.1%
Advan Co. Ltd. 99,000 1,428,149
Advan Co. Ltd. New 152,000 2,192,713
Arc Land Sakamoto Co. Ltd. 618,000 7,543,555
Fujimi, Inc. 594,500 22,264,888
Hitachi Metals Techno Ltd. 401,000 2,002,404
Kondotec, Inc. 196,500 726,836
Nippon Electric Glass Co. 410,000 7,324,949
Ltd.
43,483,494
CONSTRUCTION - 0.1%
HUNET, Inc. 200,000 1,035,694
TOTAL CONSTRUCTION & REAL 44,519,188
ESTATE
DURABLES - 12.2%
AUTOS, TIRES, & ACCESSORIES -
3.7%
Ohashi Technica, Inc. 202,000 3,735,898
Toyoda Gosei Co. Ltd. 627,000 36,237,747
39,973,645
CONSUMER ELECTRONICS - 8.5%
Funai Electric Co. Ltd. 98,000 54,373,963
Ono Sangyo Co. Ltd. 61,000 981,505
Sony Corp. 92,000 10,378,750
Sony Corp. New 218,000 24,593,125
90,327,343
TOTAL DURABLES 130,300,988
FINANCE - 1.1%
BANKS - 0.6%
Tokyo Tomin Bank Ltd. 208,400 6,552,247
CREDIT & OTHER FINANCE - 0.5%
JAFCO Co. Ltd. 30,000 5,270,945
TOTAL FINANCE 11,823,192
HEALTH - 4.8%
DRUGS & PHARMACEUTICALS - 0.3%
JCR Pharmaceuticals Co. Ltd. 492,000 3,594,230
MEDICAL EQUIPMENT & SUPPLIES
- 4.5%
Hogy Medical Co. 523,000 35,788,792
Japan Medical Dynamic 368,000 12,148,696
Marketing, Inc.
47,937,488
TOTAL HEALTH 51,531,718
SHARES VALUE (NOTE 1)
INDUSTRIAL MACHINERY &
EQUIPMENT - 15.4%
ELECTRICAL EQUIPMENT - 3.7%
Denki Kogyo Co. Ltd. 50,000 $ 503,976
Hakuto Co. Ltd. 420,000 14,137,229
Idec Izumi Corp. 1,146,500 18,235,435
Murata Manufacturing Co. Ltd. 30,000 5,825,781
Nippon Kodoshi Corp. 25,000 404,568
39,106,989
INDUSTRIAL MACHINERY &
EQUIPMENT - 11.7%
Iuchi Seieido Co. Ltd. 134,200 1,762,197
Kyokuto Boeki Kaisha Ltd. 196,000 1,388,348
Misumi Corp. 313,000 30,477,991
Nissei Plastic Industrial Co. 64,000 651,008
Ltd.
Nitto Kohki Co. Ltd. 556,100 12,701,748
S.E.S Co. Ltd. 50,000 744,405
Star Micronics Co. Ltd. 912,000 16,192,343
THK Co. Ltd. 419,000 17,629,462
Tsubaki Nakashima Co. Ltd. 1,235,000 15,440,355
Union Tool Co. 202,200 27,411,245
124,399,102
TOTAL INDUSTRIAL MACHINERY & 163,506,091
EQUIPMENT
MEDIA & LEISURE - 5.8%
ENTERTAINMENT - 0.7%
Avex, Inc. 52,700 7,261,235
PUBLISHING - 2.8%
Asia Securities Printing Co. 802,000 10,531,163
Ltd. (c)
Shobunsha Publications, Inc. 153,000 7,215,646
Shoeisha Co. Ltd. 90 6,241,909
Takara Printing Co. Ltd. 354,000 5,532,273
29,520,991
RESTAURANTS - 2.3%
Anrakutei Co. Ltd. 333,500 3,068,545
Kappa Create Co. Ltd. (c) 393,000 9,812,280
Maysuya Foods Co. 249,600 7,293,656
Zensho Co. Ltd. 281,000 4,573,331
24,747,812
TOTAL MEDIA & LEISURE 61,530,038
NONDURABLES - 7.4%
AGRICULTURE - 0.5%
Hokuto Corp. 140,000 5,023,118
BEVERAGES - 0.2%
Fuji Coca-Cola Bottling Co. 76,000 720,362
Ltd.
Mikasa Coca Cola Bottling Co. 189,900 1,545,330
2,265,692
FOODS - 4.4%
Ariake Japan Co. Ltd. 219,000 12,150,915
Bourbon Corp. 125,000 959,404
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
NONDURABLES - CONTINUED
FOODS - CONTINUED
Q'Sai Co. Ltd. 383,000 $ 24,969,022
Rock Field Co. Ltd. 163,500 8,481,922
46,561,263
HOUSEHOLD PRODUCTS - 2.3%
Fancl Corp. 172,400 25,077,233
TOTAL NONDURABLES 78,927,306
RETAIL & WHOLESALE - 15.3%
APPAREL STORES - 2.3%
Kyoto Kimono Yuzen Co. Ltd. 434 2,729,055
United Arrows Ltd. 157,000 8,130,202
World Co. Ltd. 117,000 8,785,278
World Co. Ltd. New 66,500 4,993,342
24,637,877
GENERAL MERCHANDISE STORES -
2.4%
Ryohin Keikaku Co. Ltd. 139,000 25,771,685
GROCERY STORES - 1.0%
C Two-Network Co. Ltd. 61,900 10,303,310
Ozeki Co. Ltd. 4,000 223,044
10,526,354
RETAIL & WHOLESALE,
MISCELLANEOUS - 9.6%
Don Quijote Co. Ltd. 103,000 17,430,183
JAC Co. Ltd. 89,800 6,485,463
JAC Co. Ltd. New 90,000 6,499,907
Macnica, Inc. 37,000 6,545,312
Paris Miki, Inc. 303,400 19,302,682
Shaddy Co. Ltd. 735,400 16,729,092
Yamada Denki Co. Ltd. 347,000 28,879,230
101,871,869
TOTAL RETAIL & WHOLESALE 162,807,785
SERVICES - 5.0%
BellSystem24, Inc. 14,450 9,981,644
Kansai Maintenance Corp. 238,000 1,606,621
NIC Corp. 135,100 2,436,147
Nichii Gakkan Co. 146,400 13,402,626
Nippon System Development Co. 168,900 16,102,820
Ltd.
Pasona Softbank, Inc. 196,000 9,062,327
Universal Home, Inc. 84 1,149,621
53,741,806
TECHNOLOGY - 26.2%
COMPUTER SERVICES & SOFTWARE
- 6.5%
Fujitsu Ltd. 210,000 5,942,297
InterQ, Inc. (a) 77,000 15,664,879
Obic Co. Ltd. 34,000 19,021,639
Oracle Corp. Japan 16,000 12,872,203
SHARES VALUE (NOTE 1)
Square Co. Ltd. 85,500 $ 6,285,602
Trend Micro, Inc. (a) 50,000 7,490,290
USS Co. Ltd. 79,000 2,520,344
69,797,254
COMPUTERS & OFFICE EQUIPMENT
- 0.3%
Oki Electric Industry Co. 500,000 3,513,963
Ltd. (a)
ELECTRONIC INSTRUMENTS - 6.3%
Cosel Co. Ltd. 839,500 32,682,587
Nagano Keiki Co. Ltd. 209,000 3,633,438
Tokyo Seimitsu Co. Ltd. 292,000 30,512,299
66,828,324
ELECTRONICS - 12.8%
Citizen Electronics Co. Ltd. 197,500 24,838,173
Hosiden Corp. 110,000 5,126,688
Koa Denko Co. Ltd. 550,000 15,970,039
Kuroda Electric Co. Ltd. 174,000 5,454,596
Kyocera Corp. 50,000 8,303,125
Mitsumi Electric Co. Ltd. 70,000 2,886,998
Nidec Copal Corp. 121,000 1,946,921
Nidec Copal Electronics Corp. 154,000 1,765,859
Nidec Corp. 60,000 4,161,272
Nidec Corp. New 76,000 5,270,945
Soshin Electric Co. Ltd. 55,000 467,912
Sumida Electric Co. Ltd. 445,700 21,019,697
Techno Quartz, Inc. 1,000 22,780
Toko, Inc. 1,140,000 9,487,701
Tokyo Denpa Co. Ltd. (c) 436,000 29,109,672
Towa Corp. 4,800 177,796
136,010,174
PHOTOGRAPHIC EQUIPMENT - 0.3%
Daito Chemix Corp. 389,000 2,913,723
TOTAL TECHNOLOGY 279,063,438
UTILITIES - 0.8%
CELLULAR - 0.8%
Hikari Tsushin, Inc. 57,500 8,294,803
TOTAL COMMON STOCKS 1,046,459,891
(Cost $630,396,745)
CASH EQUIVALENTS - 6.7%
SHARES VALUE (NOTE 1)
Central Cash Collateral Fund, 57,137,525 $ 57,137,525
5.94% (b)
Taxable Central Cash Fund, 14,024,178 14,024,178
5.77% (b)
TOTAL CASH EQUIVALENTS 71,161,703
(Cost $71,161,703)
TOTAL INVESTMENT PORTFOLIO - 1,117,621,594
104.9%
(Cost $701,558,448)
NET OTHER ASSETS - (4.9)% (52,069,687)
NET ASSETS - 100% $ 1,065,551,907
LEGEND
(a) Non-income producing
(b) The rate quoted is the annualized seven-day yield of the fund at
period end.
(c) Affiliated company
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $292,125,014 and $908,895,094, respectively.
The fund placed a portion of its portfolio transactions with brokerage
firms which are affiliates of Fidelity Management & Research Company.
The commissions paid to these affiliated firms were $35,924 for the
period.
The fund participated in the security lending program. At period end,
the value of securities loaned amounted to $54,341,126. The fund
received cash collateral of $57,137,525 which was invested in cash
equivalents.
The fund participated in the interfund lending program as a borrower.
The average daily loan balance during the period for which loans were
outstanding amounted to $21,317,659. The weighted average interest
rate was 6.02%. Interest expense includes $144,456 paid under the
interfund lending program.
The fund participated in the bank borrowing program. The average daily
loan balance during the period for which loans were outstanding
amounted to $2,311,000. The weighted average interest rate was 6.41%.
Interest expense includes $411 paid under the bank borrowing program.
Transactions during the period with companies which are or were
affiliates are as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
AFFILIATE PURCHASE COST SALES COST DIVIDEND INCOME VALUE
Asia Securities Printing $ 77,794 $ 134,363 $ 32,251 $ -
Co. Ltd.
Kappa Create Co. Ltd. $ 164,266 $ 468,156 $ - $ 9,812,280
Tokyo Denpa Co. Ltd. $ - $ 1,880,332 $ - $ 29,109,672
TOTALS $ 242,060 $ 2,482,851 $ 32,251 $ 38,921,952
</TABLE>
INCOME TAX INFORMATION
At April 30, 2000, the aggregate cost of investment securities for
income
tax purposes was $703,244,948. Net unrealized appreciation aggregated
$414,376,646, of which $460,016,553 related to appreciated investment
securities and $45,639,907 related to depreciated investment
securities.
At October 31, 1999, the fund had a capital loss carryforward of
approximately $21,911,000 of which $6,294,000 and $15,617,000
will expire on October 31, 2005 and 2006, respectively.
JAPAN SMALLER COMPANIES
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000 (UNAUDITED)
ASSETS
Investment in securities, at $ 1,117,621,594
value (cost $701,558,448) -
See accompanying schedule
Foreign currency held at 4,933
value (cost $4,947)
Receivable for investments 4,756,759
sold
Receivable for fund shares 3,020,358
sold
Dividends receivable 1,724,754
Interest receivable 25,601
Redemption fees receivable 4,562
Other receivables 78,770
TOTAL ASSETS 1,127,237,331
LIABILITIES
Payable for investments 1,398,440
purchased
Payable for fund shares 2,054,312
redeemed
Accrued management fee 696,442
Other payables and accrued 398,705
expenses
Collateral on securities 57,137,525
loaned, at value
TOTAL LIABILITIES 61,685,424
NET ASSETS $ 1,065,551,907
Net Assets consist of:
Paid in capital $ 425,176,217
Accumulated net investment (20,223,622)
loss
Accumulated undistributed net 244,535,413
realized gain (loss) on
investments and foreign
currency transactions
Net unrealized appreciation 416,063,899
(depreciation) on
investments and assets and
liabilities in foreign
currencies
NET ASSETS, for 54,819,319 $ 1,065,551,907
shares outstanding
NET ASSET VALUE and $19.44
redemption price per share
($1,065,551,907 (divided by)
54,819,319 shares)
Maximum offering price per $20.04
share (100/97.00 of $19.44)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30,
2000 (UNAUDITED)
INVESTMENT INCOME $ 2,470,309
Dividends (including $32,251
received from affiliated
issuers)
Interest 1,474,142
Security lending 568,729
4,513,180
Less foreign taxes withheld (370,605)
TOTAL INCOME 4,142,575
EXPENSES
Management fee $ 6,261,279
Transfer agent fees 1,660,589
Accounting and security 451,589
lending fees
Non-interested trustees' 2,709
compensation
Custodian fees and expenses 291,589
Registration fees 157,860
Audit 13,368
Legal 26,069
Interest 144,867
Miscellaneous 361
Total expenses before 9,010,280
reductions
Expense reductions (96,064) 8,914,216
NET INVESTMENT INCOME (LOSS) (4,771,641)
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities 269,664,025
(including realized gain
(loss) of $(445,732) on sale
of investments in
affiliated issuers)
Foreign currency transactions 339,991 270,004,016
Change in net unrealized
appreciation (depreciation)
on:
Investment securities (281,410,058)
Assets and liabilities in (24,192) (281,434,250)
foreign currencies
NET GAIN (LOSS) (11,430,234)
NET INCREASE (DECREASE) IN $ (16,201,875)
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION Sales $ 3,431,676
charges paid to FDC
Sales charges - Retained by $ 3,429,484
FDC
Expense Reductions $ 84,102
Directed brokerage
arrangements
Custodian credits 10
Transfer agent credits 11,952
$ 96,064
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
INCREASE (DECREASE) IN NET SIX MONTHS ENDED APRIL 30, YEAR ENDED OCTOBER 31, 1999
ASSETS 2000 (UNAUDITED)
Operations Net investment $ (4,771,641) $ (1,439,814)
income (loss)
Net realized gain (loss) 270,004,016 28,685,691
Change in net unrealized (281,434,250) 699,993,638
appreciation (depreciation)
NET INCREASE (DECREASE) IN (16,201,875) 727,239,515
NET ASSETS RESULTING FROM
OPERATIONS
Distributions in excess of (13,572,554) -
net investment income
Share transactions Net 801,373,348 1,641,046,368
proceeds from sales of shares
Reinvestment of distributions 13,197,729 -
Cost of shares redeemed (1,504,174,351) (694,218,114)
NET INCREASE (DECREASE) IN (689,603,274) 946,828,254
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
Redemption fees 4,917,292 5,957,410
TOTAL INCREASE (DECREASE) (714,460,411) 1,680,025,179
IN NET ASSETS
NET ASSETS
Beginning of period 1,780,012,318 99,987,139
End of period (including $ 1,065,551,907 $ 1,780,012,318
accumulated net investment
loss of $20,223,622 and
$1,879,427, respectively)
OTHER INFORMATION
Shares
Sold 35,540,145 112,923,444
Issued in reinvestment of 575,817 -
distributions
Redeemed (67,854,151) (43,003,282)
Net increase (decrease) (31,738,189) 69,920,162
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SIX MONTHS ENDED APRIL 30, 2000 YEARS ENDED OCTOBER 31,
SELECTED PER-SHARE DATA (UNAUDITED) 1999 1998 1997 1996 E
Net asset value, beginning of $ 20.56 $ 6.01 $ 6.47 $ 9.13 $ 10.00
period
Income from Investment
Operations
Net investment income (loss) D (.06) (.03) (.01) (.03) (.03)
Net realized and unrealized (.97) 14.45 (.45) (2.63) (.87)
gain (loss)
Total from investment (1.03) 14.42 (.46) (2.66) (.90)
operations
Less Distributions
In excess of net investment (.15) - (.01) (.01) -
income
From net realized gain - - - (.03) -
Total distributions (.15) - (.01) (.04) -
Redemption fees added to paid .06 .13 .01 .04 .03
in capital
Net asset value, end of period $ 19.44 $ 20.56 $ 6.01 $ 6.47 $ 9.13
TOTAL RETURN B, C (4.83)% 242.10% (6.94)% (28.80)% (8.70)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 1,065,552 $ 1,780,012 $ 99,987 $ 84,274 $ 105,664
(000 omitted)
Ratio of expenses to average 1.06% A 1.07% 1.23% 1.35% 1.34%
net assets
Ratio of expenses to average 1.05% A, F 1.07% 1.23% 1.34% F 1.34%
net assets after expense
reductions
Ratio of net investment (.56)% A (.22)% (.20)% (.46)% (.32)%
income (loss) to average net
assets
Portfolio turnover rate 36% A 39% 39% 101% 66%
A ANNUALIZED
B THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
D NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
E FOR THE PERIOD NOVEMBER 1,
1995 (COMMENCEMENT OF
OPERATIONS) TO OCTOBER 31,
1996.
F FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
</TABLE>
LATIN AMERICA
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value).
CUMULATIVE TOTAL RETURNS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PERIODS ENDED OCTOBER 31, 1994 PAST 6 MONTHS PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
FIDELITY LATIN AMERICA 18.60% 10.85% 58.18% 56.86%
FIDELITY LATIN AMERICA 15.04% 7.53% 53.44% 52.15%
(INCL. 3.00% SALES CHARGE)
MSCI EMF - Latin America 20.84% 14.10% 59.27% 100.73%
Latin American Funds Average 25.73% 17.12% 49.00% n/a
</TABLE>
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or since the fund started on April 19, 1993. For example, if you
had invested $1,000 in a fund that had a 5% return over the past year,
the value of your investment would be $1,050. You can compare the
fund's returns to the performance of the Morgan Stanley Capital
International (MSCI) Emerging Markets Free-Latin America Index - a
market capitalization-weighted index of over 150 stocks traded in
seven Latin American markets. To measure how the fund's performance
stacked up against its peers, you can compare it to the Latin American
funds average, which reflects the performance of mutual funds with
similar objectives tracked by Lipper Inc. The past six months average
represents a peer group of 51 mutual funds. These benchmarks include
reinvested dividends and capital gains, if any, and exclude the effect
of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1994 PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
FIDELITY LATIN AMERICA 10.85% 9.61% 6.61%
FIDELITY LATIN AMERICA 7.53% 8.94% 6.15%
(INCL. 3.00% SALES CHARGE)
MSCI EMF - Latin America 14.10% 9.76% 10.41%
Latin American Funds Average 17.12% 7.89% n/a
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
Latin America MS EMF Latin America
00349 MS007
1993/04/19 9700.00 10000.00
1993/04/30 9641.80 9629.27
1993/05/31 9874.60 9880.87
1993/06/30 10379.00 10503.42
1993/07/31 10737.90 10785.19
1993/08/31 11746.70 11714.82
1993/09/30 11960.10 11920.39
1993/10/31 12881.60 12392.75
1993/11/30 13861.30 13204.75
1993/12/31 15722.24 14878.84
1994/01/31 16981.97 17327.50
1994/02/28 16093.32 16826.00
1994/03/31 14462.50 15684.24
1994/04/30 13437.14 14487.31
1994/05/31 14169.54 15343.10
1994/06/30 12851.22 14360.38
1994/07/31 14042.59 15721.44
1994/08/31 16132.38 18278.52
1994/09/30 16679.24 19062.61
1994/10/31 15829.65 18120.86
1994/11/30 15360.92 17604.02
1994/12/31 12079.76 14974.08
1995/01/31 10331.75 13338.86
1995/02/28 8710.70 11406.56
1995/03/31 8564.22 11013.06
1995/04/30 9618.88 12602.53
1995/05/31 9667.71 12888.85
1995/06/30 9804.43 13089.71
1995/07/31 10331.75 13494.70
1995/08/31 10527.06 13648.86
1995/09/30 10361.05 13532.50
1995/10/31 9521.23 12443.72
1995/11/30 9863.02 12667.34
1995/12/31 10090.87 13052.35
1996/01/31 11504.18 14390.58
1996/02/29 10901.30 13561.89
1996/03/31 11316.40 13731.96
1996/04/30 11800.68 14492.29
1996/05/31 12373.92 14958.43
1996/06/30 12709.95 15342.23
1996/07/31 12186.13 14737.59
1996/08/31 12561.70 15152.37
1996/09/30 12759.37 15498.77
1996/10/31 12443.10 15347.63
1996/11/30 12601.23 15494.03
1996/12/31 13190.77 15951.46
1997/01/31 14347.85 17521.55
1997/02/28 15122.60 18680.87
1997/03/31 15032.04 18395.98
1997/04/30 15766.54 19316.04
1997/05/31 16903.50 20684.98
1997/06/30 18352.37 22458.18
1997/07/31 19569.83 23720.20
1997/08/31 17436.77 21447.02
1997/09/30 19217.67 23503.38
1997/10/31 15605.55 19038.69
1997/11/30 16662.02 19689.74
1997/12/31 17528.97 20998.04
1998/01/31 15788.29 18665.66
1998/02/28 16541.56 19646.12
1998/03/31 17579.87 21039.04
1998/04/30 17579.87 20557.00
1998/05/31 15045.19 17898.10
1998/06/30 14261.37 16840.37
1998/07/31 14882.32 17673.60
1998/08/31 9120.76 11542.94
1998/09/30 9874.04 12724.85
1998/10/31 10922.52 13708.79
1998/11/30 11502.75 14767.44
1998/12/31 10807.56 13626.18
1999/01/31 9421.44 12012.79
1999/02/28 10182.24 12779.37
1999/03/31 12099.88 15377.27
1999/04/30 13725.70 17592.42
1999/05/31 13204.60 17042.55
1999/06/30 14069.63 17854.23
1999/07/31 12600.13 16480.24
1999/08/31 12235.36 15983.64
1999/09/30 12339.58 16244.78
1999/10/31 12829.41 16611.05
1999/11/30 14403.13 18706.22
1999/12/31 16741.08 21650.58
2000/01/31 15583.62 20724.89
2000/02/29 17214.59 22315.52
2000/03/31 17498.69 22500.64
2000/04/28 15215.34 20072.61
IMATRL PRASUN SHR__CHT 20000430 20000531 121358 R00000000000088
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Latin America Fund on April 19, 1993, when the
fund started, and the current 3.00% sales charge was paid. As the
chart shows, by April 30, 2000, the value of the investment would have
grown to $15,215 - a 52.15% increase on the initial investment. For
comparison, look at how the Morgan Stanley Capital International
Emerging Markets Free-Latin America Index did over the same period.
With dividends and capital gains, if any, reinvested, the same $10,000
would have grown to $20,073 - a 100.73% increase.
UNDERSTANDING PERFORMANCE
Many markets around the globe offer the
potential for significant growth over time; however,
investing in foreign markets means assuming greater
risks than investing in the United States. Factors like
changes in a country's financial markets, its local
political and economic climate, and the fluctuating
value of its currency create these risks. For these
reasons an international fund's performance may
be more volatile than a fund that invests exclusively
in the United States. Past performance is no
guarantee of future results and you may have a
gain or loss when you sell your shares.
(checkmark)
LATIN AMERICA
FUND TALK: THE MANAGER'S OVERVIEW
(PORTFOLIO MANAGER PHOTO)
An interview with Patti Satterthwaite, Portfolio Manager of Fidelity
Latin America Fund
Q. HOW DID THE FUND PERFORM, PATTI?
A. For the six-month period that ended April 30, 2000, the fund
returned 18.60%. In comparison, the Morgan Stanley Capital
International (MSCI) Emerging Markets Free-Latin America Index
returned 20.84%. During the same period, the Latin American funds
average, as tracked by Lipper Inc., returned 25.73%. For the 12-month
period that ended April 30, 2000, the fund returned 10.85%. That
compared to the 14.10% return for the Morgan Stanley index, and the
17.12% return for the Lipper peer group.
Q. WHAT WERE SOME OF THE KEYS TO THE FUND'S PERFORMANCE DURING THE
PAST SIX MONTHS?
A. The fund's overweighted position in Mexico and good stock selection
within that country were the biggest contributors to performance.
Mexico outperformed just about every market in the Latin American
region. In particular, the fund's holdings in Mexican banks performed
extremely well. Recently, the country's strengthening economy boosted
consumer borrowing activity, banks retained investors' attention with
improved balance sheets, ongoing improvements in the regulatory
environment and the prospect of consolidation. These factors pushed
the stock prices of holdings such as Grupo Financiero Bancomer and
Banacci steadily higher throughout the past six months. Media
companies such as Grupo Televisa also helped performance as
advertising revenues improved. Another good performer was Telefonos de
Mexico (Telmex), the fund's largest holding, in response to the
impressive demand for wireless, voice and Internet services. The fund
underperformed its peers in large part because there are many new
funds in the Lipper peer group, which came into existence during the
recent strong performance of Latin American markets and many
competitors are less diversified than the fund.
Q. YOU RECENTLY MADE SOME CHANGES TO THE FUND'S TELECOMMUNICATIONS
HOLDINGS. CAN YOU TELL US ABOUT THEM?
A. Sure. I sold some companies that focus almost exclusively on
fixed-line communications and replaced them with companies that have
more of an emphasis on long-distance, data transmission and cellular
communications, as Telmex does. Some recent additions include Brazil's
TCP Cellular and long-distance and data transmission provider
Embratel.
Q. WHAT ABOUT DISAPPOINTMENTS?
A. I'd say that the biggest disappointments came as a result of what
the fund didn't own. We missed out on the significant appreciation of
Telephonica Espana's buyout of most of its telephone subsidiaries in
Brazil, when I sold some of the fund's holdings in Telesp before that
buyout was announced.
Q. WHERE DID YOU FIND ATTRACTIVE OPPORTUNITIES IN BRAZIL?
A. Pulp and paper companies in Brazil looked very attractive, both
from a valuation and a fundamental standpoint. With the market's focus
on faster-growing sectors, pulp and paper companies cheapened quite a
bit. One of my favorites in this area was Votorantim Celulose, a
Brazilian pulp producer, which performed reasonably well.
Q. WHAT WAS YOUR APPROACH TO COUNTRIES OTHER THAN MEXICO AND BRAZIL?
A. I tended to underweight the rest of the region. Chilean stocks
recently went through a "de-rating," meaning that stocks in Chile
cheapened when Mexico achieved investment-grade status and attracted
money away from Chilean stocks. Prior to that, Chile was the only
investment-grade rated country in Latin America. I also underweighted
Argentina because I believed its economy might weaken in response to
potentially deflationary conditions over the next several years.
Q. WHAT'S YOUR OUTLOOK?
A. The Mexican economy continues to look quite strong and corporate
earnings appear to be on a healthy track. That said, I slightly
reduced the fund's stake in Mexico recently as a precaution against
volatility that might arise in conjunction with the upcoming
presidential election in July. If the election goes well, I expect the
Mexican market to continue to perform well. Brazil's economy appears
to be strengthening, which I believe will be a positive for that
market. Except for Argentina, I think that most Latin American
currencies will appreciate, which also would bode well for the region.
NOTE TO SHAREHOLDERS: Fidelity Latin America Fund may invest up to 35%
of its total assets in any industry that represents more than 20% of
the Latin American market. As of April 30, 2000, 31% of the fund's
total assets were invested in telephone services companies, which
accounted for approximately 31% of the Latin American market as of
April 30, 2000, as represented by the Morgan Stanley Capital
International (MSCI) Emerging Markets Free-Latin America Index.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET OR OTHER CONDITIONS. FOR MORE INFORMATION, SEE PAGE 3.
FUND FACTS
GOAL: seeks high total investment return
FUND NUMBER: 349
TRADING SYMBOL: FLATX
START DATE: April 19, 1993
SIZE: as of April 30, 2000, more than
$346 million
MANAGER: Patti Satterthwaite, since inception;
manager, Fidelity Emerging Markets Fund, since April 2000; securities
and Latin American analyst, 1986-1990; joined Fudelity in 1986
(checkmark)
LATIN AMERICA
INVESTMENT CHANGES
AS OF APRIL 30, 2000
Venezuela 2.9%
Argentina 2.7%
United States 3.1%
Row: 1, Col: 1, Value: 2.7
Row: 1, Col: 2, Value: 35.1
Row: 1, Col: 3, Value: 4.9
Row: 1, Col: 4, Value: 0.9
Row: 1, Col: 5, Value: 43.8
Row: 1, Col: 6, Value: 0.9
Row: 1, Col: 7, Value: 1.3
Row: 1, Col: 8, Value: 4.4
Row: 1, Col: 9, Value: 3.1
Row: 1, Col: 10, Value: 2.9
Peru 4.4%
Panama 1.3%
Other 0.9%
Brazil 35.1%
Mexico 43.8%
Chile 4.9%
Luxembourg 0.9%
GEOGRAPHIC DIVERSIFICATION (%
OF FUND'S NET ASSETS)
AS OF OCTOBER 31,1999
United States 4.0%
Argentina 5.0%
Row: 1, Col: 1, Value: 5.0
Row: 1, Col: 2, Value: 30.9
Row: 1, Col: 3, Value: 3.7
Row: 1, Col: 4, Value: 1.3
Row: 1, Col: 5, Value: 49.4
Row: 1, Col: 6, Value: 1.7
Row: 1, Col: 7, Value: 4.0
Row: 1, Col: 8, Value: 4.0
Row: 1, Col: 9, Value: 0.0
Peru 4.0%
Other 1.7%
Brazil 30.9%
Mexico 49.4%
Chile 3.7%
Luxembourg 1.3%
<TABLE>
<CAPTION>
<S> <C> <C>
ASSET ALLOCATION
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Stocks 98.1 96.0
Short-Term Investments and 1.9 4.0
Net Other Assets
TOP TEN STOCKS BY ISSUER AS
OF APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Telefonos de Mexico SA de CV 18.3 14.9
(Mexico, Telephone Services)
Wal-Mart de Mexico SA de CV 6.1 0.0
(Mexico, General
Merchandise Stores)
Grupo Televisa SA de CV 5.4 4.0
(Mexico, Broadcasting)
Petrobras PN (Brazil, Oil & 5.0 0.0
Gas)
Telesp Celular Participacoes 4.8 0.0
SA (Brazil, Cellular)
Companhia Vale do Rio Doce 4.5 3.2
(Brazil, Metals & Mining)
Brahma Cervejaria (Compagnie) 4.3 4.3
(Brazil, Beverages)
Compania Anonima Nacional 2.9 0.0
Telefono de Venezuela
(Venezuela, Telephone
Services)
Banacci SA de CV (Mexico, 2.8 3.7
Banks)
Tele Norte Leste 2.8 4.6
Participacoes SA (Brazil,
Telephone Services)
56.9 34.7
TOP TEN MARKET SECTORS AS OF
APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Utilities 38.8 31.7
Nondurables 13.3 19.8
Media & Leisure 9.7 4.3
Finance 9.6 8.7
Basic Industries 8.4 10.9
Retail & Wholesale 7.7 7.8
Energy 6.9 3.7
Precious Metals 2.1 2.7
Construction & Real Estate 0.6 5.5
Holding Companies 0.5 0.6
</TABLE>
LATIN AMERICA
INVESTMENTS APRIL 30, 2000 (UNAUDITED)
Showing Percentage of Net Assets
COMMON STOCKS - 98.1%
SHARES VALUE (NOTE 1)
ARGENTINA - 2.7%
Bansud SA Series B (a) 216,119 $ 402,257
Cresud S.A.C.I.F. y A. 111,582 1,101,872
sponsored ADR
Inversiones y Representacions 45,097 1,330,362
SA sponsored GDR
PC Holdings SA sponsored ADR 436,454 6,683,202
(a)
9,517,693
BRAZIL - 35.1%
Aracruz Celulose SA sponsored 142,800 2,668,575
ADR
Banco Bradesco SA (PN) (a) 619,427,000 4,564,199
Banco Itau SA 77,410,000 5,789,668
Brahma Cervejaria (Compagnie):
warrants 4/30/03 (a) 1,895,770 262,583
(Reg.) (a) 117,827 62,014
sponsored ADR 936,426 14,514,603
Companhia de Tecidos Norte de 10,053,310 751,910
Minas (Coteminas) (PN)
Companhia Vale do Rio Doce 632,200 15,656,144
(PN-A)
Compania Cimento Portland Itau 6,044,000 743,362
Compania Energertica Minas 221,929,329 3,381,195
Gerais
Dixie Toga SA 1,904,400 569,737
Embratel Participacoes SA ADR 418,600 9,418,500
Encorpar Redito e Participa 11,465,310 28,584
SA (a)
Perdigao SA 1,202,539,630 1,332,454
Petrobras PN (Pfd. Reg.) 74,006,000 17,507,237
Souza Cruz Industria Comerico 530,500 3,232,964
Tele Centro Sul Participacoes 58,368 3,720,960
SA sponsored ADR
Tele Norte Leste 544,207 9,693,687
Participacoes SA ADR
Tele Sudeste Celular 24,100 1,030,275
Participacoes SA ADR
Telemig Celular Participacoes 51,500 3,012,750
SA ADR
Telesp Celular Participacoes 378,900 16,718,963
SA ADR
Votorantim Celulose e Papel 231,786,499 6,908,650
SA (PN Reg.)
121,569,014
BRITISH VIRGIN ISLANDS - 0.1%
El Sitio, Inc. 49,200 528,900
CHILE - 4.9%
Compania Cervecerias Unidas 60,700 1,354,369
SA sponsored ADR
Compania de 278,600 5,154,100
Telecomunicaciones de Chile
SA sponsored ADR
Distribucion Y Servicio D&S 327,100 5,560,700
SA ADR
Embotelladora Andina 257,400 2,992,275
sponsored ADR Class A
Enersis SA sponsored ADR 42,278 787,428
Vina Concha Stet y Toro SA 30,400 1,170,400
sponsored ADR
17,019,272
SHARES VALUE (NOTE 1)
COLOMBIA - 0.8%
Banco Ganadero SA sponsored 79,800 $ 558,600
ADR Class C
Compania Nacional de 136,000 454,586
Chocolates
Suramericana de Inversiones SA 1,761,400 1,776,002
2,789,188
LUXEMBOURG - 0.9%
Quilmes Industrial SA 322,900 3,067,550
sponsored ADR
MEXICO - 43.8%
Alfa SA de CV 620,000 1,923,171
Banacci SA de CV Series O (a) 2,714,000 9,819,207
Corporacion Interamericana de 323,000 1,318,122
Entretenimiento SA de CV
Series B (a)
Grupo Carso SA de CV Series 2,172,100 7,361,680
A1 (a)
Grupo Financiero Bancomer SA 21,591,700 9,626,946
de CV Series A (a)
Grupo Financiero Inbursa SA 474,000 1,926,768
de CV Series O (a)
Grupo Modelo SA de CV Series C 2,434,200 5,144,263
Grupo Televisa SA de CV 293,100 18,593,531
sponsored ADR (a)
Telefonos de Mexico SA de CV 1,074,200 63,176,384
Series L sponsored ADR
Tubos de Acero de Mexico SA 137,500 2,053,906
sponsored ADR
TV Azteca SA de CV sponsored 841,700 9,258,700
ADR
Wal-Mart de Mexico SA de CV 9,939,200 21,258,624
Series C (a)
151,461,302
PANAMA - 1.3%
Banco Latin Americano de 10,000 246,875
Exporaciones SA (BLADEX)
Series E
Panamerican Beverages, Inc. 251,700 4,137,319
Class A
4,384,194
PERU - 4.4%
Compania de Minas
Buenaventura SA:
Class B 232,618 2,024,366
Class B sponsored ADR 306,400 5,285,400
Telefonica del Peru SA ADR 529,000 8,001,125
15,310,891
UNITED STATES OF AMERICA - 1.2%
Impsat Fiber Networks, Inc. 257,600 4,073,300
VENEZUELA - 2.9%
Compania Anonima Nacional 343,300 9,955,700
Telefono de Venezuela
sponsored ADR
TOTAL COMMON STOCKS 339,677,004
(Cost $269,475,365)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
NONCONVERTIBLE BONDS - 0.0%
MOODY'S RATINGS (UNAUDITED) PRINCIPAL AMOUNT VALUE (NOTE 1)
BRAZIL - 0.0%
Companhia Vale do Rio Doce 0% - BRL 290,000 $ 0
11/19/00 (Cost $0)
</TABLE>
CASH EQUIVALENTS - 1.6%
SHARES
Central Cash Collateral Fund, 140,140 140,140
5.94% (b)
Taxable Central Cash Fund, 5,316,762 5,316,762
5.77% (b)
TOTAL CASH EQUIVALENTS 5,456,902
(Cost $5,456,902)
TOTAL INVESTMENT PORTFOLIO - 345,133,906
99.7%
(Cost $274,932,267)
NET OTHER ASSETS - 0.3% 928,963
NET ASSETS - 100% $ 346,062,869
CURRENCY ABBREVIATIONS
BRL - Brazilian real
LEGEND
(a) Non-income producing
(b) The rate quoted is the annualized seven-day yield of the fund at
period end.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $124,888,348 and $139,610,597.
The fund participated in the security lending program. At period end,
the value of securities loaned amounted to $136,981. The fund received
cash collateral of $140,140 which was invested in cash equivalents.
INCOME TAX INFORMATION
At April 30, 2000, the aggregate cost of investment securities for
income
tax purposes was $275,230,650. Net unrealized appreciation aggregated
$69,903,256, of which $105,659,807 related to appreciated investment
securities and $35,756,551 related to depreciated investment
securities.
At October 31, 1999, the fund had a capital loss carryforward of
approximately $97,171,000 of which $36,899,000, $37,615,000
and $22,657,000 will expire on October 31, 2003, 2004 and
2007, respectively.
LATIN AMERICA
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000 (UNAUDITED)
ASSETS
Investment in securities, at $ 345,133,906
value (cost $274,932,267) -
See accompanying schedule
Foreign currency held at 15
value (cost $15)
Receivable for investments 313,044
sold
Receivable for fund shares 448,936
sold
Dividends receivable 1,515,071
Interest receivable 32,857
Redemption fees receivable 217
Other receivables 11,081
TOTAL ASSETS 347,455,127
LIABILITIES
Payable to custodian bank $ 213,206
Payable for investments 172,978
purchased
Payable for fund shares 461,190
redeemed
Accrued management fee 221,242
Other payables and accrued 183,502
expenses
Collateral on securities 140,140
loaned, at value
TOTAL LIABILITIES 1,392,258
NET ASSETS $ 346,062,869
Net Assets consist of:
Paid in capital $ 384,526,719
Undistributed net investment 574,129
income
Accumulated undistributed net (109,223,959)
realized gain (loss) on
investments and foreign
currency transactions
Net unrealized appreciation 70,185,980
(depreciation) on
investments and assets and
liabilities in foreign
currencies
NET ASSETS, for 23,939,714 $ 346,062,869
shares outstanding
NET ASSET VALUE and $14.46
redemption price per share
($346,062,869 (divided by)
23,939,714 shares)
Maximum offering price per $14.91
share (100/97.00 of $14.46)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30,
2000 (UNAUDITED)
INVESTMENT INCOME $ 3,661,217
Dividends
Interest 301,619
Security lending 93,408
4,056,244
Less foreign taxes withheld (308,512)
TOTAL INCOME 3,747,732
EXPENSES
Management fee $ 1,432,138
Transfer agent fees 583,595
Accounting and security 117,465
lending fees
Non-interested trustees' 1,134
compensation
Custodian fees and expenses 157,041
Registration fees 32,424
Audit 24,167
Legal 5,188
Foreign tax expense 141,481
Reports to shareholders 25,054
Miscellaneous 324
Total expenses before 2,520,011
reductions
Expense reductions (72,641) 2,447,370
NET INVESTMENT INCOME 1,300,362
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities (10,944,061)
Foreign currency transactions (250,890) (11,194,951)
Change in net unrealized
appreciation (depreciation)
on:
Investment securities 70,232,570
Assets and liabilities in 251,984 70,484,554
foreign currencies
NET GAIN (LOSS) 59,289,603
NET INCREASE (DECREASE) IN $ 60,589,965
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION Sales $ 238,968
charges paid to FDC
Sales charges - Retained by $ 238,968
FDC
Expense Reductions $ 68,282
Directed brokerage
arrangements
Custodian credits 2,101
Transfer agent credits 2,258
$ 72,641
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
INCREASE (DECREASE) IN NET SIX MONTHS ENDED APRIL 30, YEAR ENDED OCTOBER 31, 1999
ASSETS 2000 (UNAUDITED)
Operations Net investment $ 1,300,362 $ 5,099,283
income
Net realized gain (loss) (11,194,951) (23,809,899)
Change in net unrealized 70,484,554 59,451,166
appreciation (depreciation)
NET INCREASE (DECREASE) IN 60,589,965 40,740,550
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (3,622,710) (7,666,729)
from net investment income
Share transactions Net 95,131,912 152,034,795
proceeds from sales of shares
Reinvestment of distributions 3,485,627 7,377,095
Cost of shares redeemed (117,194,196) (218,494,512)
NET INCREASE (DECREASE) IN (18,576,657) (59,082,622)
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
Redemption fees 335,836 1,105,692
TOTAL INCREASE (DECREASE) 38,726,434 (24,903,109)
IN NET ASSETS
NET ASSETS
Beginning of period 307,336,435 332,239,544
End of period (including $ 346,062,869 $ 307,336,435
undistributed net investment
income of $574,129 and
$2,896,477, respectively)
OTHER INFORMATION
Shares
Sold 6,237,172 12,312,091
Issued in reinvestment of 239,890 701,738
distributions
Redeemed (7,508,500) (19,009,646)
Net increase (decrease) (1,031,438) (5,995,817)
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SIX MONTHS ENDED APRIL 30, 2000 YEARS ENDED OCTOBER 31,
SELECTED PER-SHARE DATA (UNAUDITED) 1999 1998 1997 1996
Net asset value, beginning of $ 12.31 $ 10.73 $ 15.51 $ 12.59 $ 9.75
period
Income from Investment
Operations
Net investment income .05 D .18 D .22 D, E .20 D .22
Net realized and unrealized 2.23 1.61 (4.81) 2.92 2.72
gain (loss)
Total from investment 2.28 1.79 (4.59) 3.12 2.94
operations
Less distributions from net (.14) (.25) (.20) (.23) (.12)
investment income
Redemption fees added to paid .01 .04 .01 .03 .02
in capital
Net asset value, end of period $ 14.46 $ 12.31 $ 10.73 $ 15.51 $ 12.59
TOTAL RETURN B, C 18.60% 17.46% (30.01)% 25.42% 30.69%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 346,063 $ 307,336 $ 332,240 $ 808,542 $ 557,889
(000 omitted)
Ratio of expenses to average 1.30% A 1.32% 1.34% 1.30% 1.32%
net assets
Ratio of expenses to average 1.26% A, F 1.30% F 1.33% F 1.29% F 1.32%
net assets after expense
reductions
Ratio of net investment .67% A 1.55% 1.49% 1.19% 1.48%
income to average net assets
Portfolio turnover rate 69% A 49% 31% 64% 70%
A ANNUALIZED
B THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
D NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES
OUTSTANDING DURING THE PERIOD.
E INVESTMENT INCOME PER SHARE
REFLECTS A SPECIAL DIVIDEND
WHICH AMOUNTED TO $.06 PER
SHARE.
F FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA 1995
Net asset value, beginning of $ 16.21
period
Income from Investment
Operations
Net investment income .04
Net realized and unrealized (6.52)
gain (loss)
Total from investment (6.48)
operations
Less distributions from net -
investment income
Redemption fees added to paid .02
in capital
Net asset value, end of period $ 9.75
TOTAL RETURN B, C (39.85)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 466,289
(000 omitted)
Ratio of expenses to average 1.41%
net assets
Ratio of expenses to average 1.41%
net assets after expense
reductions
Ratio of net investment .97%
income to average net assets
Portfolio turnover rate 57%
A ANNUALIZED
B THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
D NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES
OUTSTANDING DURING THE PERIOD.
E INVESTMENT INCOME PER SHARE
REFLECTS A SPECIAL DIVIDEND
WHICH AMOUNTED TO $.06 PER
SHARE.
F FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
</TABLE>
NORDIC
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value). If Fidelity had not reimbursed certain fund
expenses, the life of fund total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1994 PAST 6 MONTHS PAST 1 YEAR LIFE OF FUND
FIDELITY NORDIC 39.75% 61.76% 245.84%
FIDELITY NORDIC (INCL. 35.56% 56.91% 235.47%
3.00% SALES CHARGE)
FT/S&P-Actuaries World Nordic 50.10% 83.82% 274.18%
European Region Funds Average 21.51% 25.29% n/a
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year or since
the fund started on November 1, 1995. For example, if you had invested
$1,000 in a fund that had a 5% return over the past year, the value of
your investment would be $1,050. You can compare the fund's returns to
the performance of the FT/S&P-Actuaries World Nordic Index - a market
capitalization-weighted index of over 90 stocks traded in four
Scandinavian markets. To measure how the fund's performance stacked up
against its peers, you can compare the fund's performance to the
European region funds average, which reflects the performance of
mutual funds with similar objectives tracked by Lipper Inc. The past
six months average represents a peer group of 161 mutual funds. These
benchmarks include reinvested dividends and capital gains, if any, and
exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1994 PAST 1 YEAR LIFE OF FUND
FIDELITY NORDIC 61.76% 31.76%
FIDELITY NORDIC (INCL. 56.91% 30.87%
3.00% SALES CHARGE)
FT/S&P-Actuaries World Nordic 83.82% 34.09%
European Region Funds Average 25.29% n/a
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
Nordic FT Nordic
00342 FT002
1995/11/01 9700.00 10000.00
1995/11/30 9845.50 10178.00
1995/12/31 9554.50 9911.00
1996/01/31 9612.70 9809.37
1996/02/29 10204.40 10456.70
1996/03/31 10340.20 10564.18
1996/04/30 10476.00 10606.06
1996/05/31 10990.10 10977.77
1996/06/30 11106.50 11058.76
1996/07/31 10980.40 10822.25
1996/08/31 11630.30 11437.85
1996/09/30 12018.30 11769.52
1996/10/31 12386.90 12210.52
1996/11/30 13269.60 12915.13
1996/12/31 13537.43 13283.75
1997/01/31 13880.77 13676.71
1997/02/28 13969.05 13661.62
1997/03/31 14332.01 14093.06
1997/04/30 13439.33 13296.07
1997/05/31 14302.58 14246.43
1997/06/30 15136.41 15111.48
1997/07/31 15617.09 15775.44
1997/08/31 14999.07 15074.22
1997/09/30 16843.30 16846.82
1997/10/31 15636.71 15544.47
1997/11/30 15705.38 15583.27
1997/12/31 15177.38 15331.98
1998/01/31 15593.63 15587.89
1998/02/28 17077.22 16969.39
1998/03/31 18219.26 18157.18
1998/04/30 19713.51 19141.41
1998/05/31 19830.92 19281.53
1998/06/30 20119.10 19279.69
1998/07/31 20791.51 19608.59
1998/08/31 16575.57 16383.65
1998/09/30 16212.68 15544.47
1998/10/31 17354.72 16741.19
1998/11/30 18358.01 17652.13
1998/12/31 19660.15 18400.78
1999/01/31 21015.65 19564.24
1999/02/28 19574.76 18618.50
1999/03/31 20119.10 19577.79
1999/04/30 20738.15 20356.31
1999/05/31 20044.38 19512.81
1999/06/30 22115.00 21352.86
1999/07/31 22296.44 22089.18
1999/08/31 22360.48 22024.51
1999/09/30 22552.60 22346.33
1999/10/31 24004.16 24928.86
1999/11/30 25925.35 27988.11
1999/12/31 31360.32 33441.15
2000/01/31 31240.66 33053.09
2000/02/29 35624.36 37044.84
2000/03/31 35722.26 37256.71
2000/04/28 33546.73 37418.39
IMATRL PRASUN SHR__CHT 20000430 20000531 120001 R00000000000057
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Nordic Fund on November 1, 1995, when the fund
started, and the current 3.00% sales charge was paid. As the chart
shows, by April 30, 2000, the value of the investment would have grown
to $33,547 - a 235.47% increase on the initial investment. For
comparison, look at how the FT/S&P-Actuaries World Nordic Index did
over the same period. With dividends and capital gains, if any,
reinvested, the same $10,000 investment would have grown to $37,418 -
a 274.18% increase.
UNDERSTANDING PERFORMANCE
Many markets around the globe offer the
potential for significant growth over time; however,
investing in foreign markets means assuming greater
risks than investing in the United States. Factors like
changes in a country's financial markets, its local
political and economic climate, and the fluctuating
value of its currency create these risks. For these
reasons an international fund's performance may
be more volatile than a fund that invests exclusively
in the United States. Past performance is no
guarantee of future results and you may have a
gain or loss when you sell your shares.
(checkmark)
NORDIC
FUND TALK: THE MANAGER'S OVERVIEW
(PORTFOLIO MANAGER PHOTO)
An interview with
Trygve Toraasen,
Portfolio Manager of Fidelity Nordic Fund
Q. HOW DID THE FUND PERFORM, TRYGVE?
A. For the six months that ended April 30, 2000, the fund returned
39.75%, compared to 50.10% for the FT/S&P-Actuaries World Nordic Index
and 21.51% for the European region funds average, as measured by
Lipper Inc. For the 12-month period that ended April 30, 2000, the
fund returned 61.76%, while the index and the Lipper average had
returns of 83.82% and 25.29%, respectively.
Q. WHAT WAS THE MARKET ENVIRONMENT LIKE DURING THE PERIOD?
A. It was quite positive overall, albeit extremely volatile. With the
exception of Norway, Scandinavia remained Europe's brightest star
during the period, as robust economic growth, low inflation and
widespread corporate restructuring painted the backdrop for strong
stock performance. New economy, or the so-called TMT stocks from the
swift-moving spaces of technology, media and telecommunications, led
the way in Finland and Sweden behind leading telecom equipment makers
Nokia and Ericsson, which combined accounted for over 55% of the
index. However, as tech-related sectors became increasingly
intertwined globally, uncertainty surrounding the price levels of TMT
issues induced a dramatic sell-off late in the period among nervous
investors worldwide. Although far from immune to this correction,
Nordic markets gave back far less than most others thanks to their
claim on two of the world's finest telecom companies.
Q. HOW DID THE FUND OUTPACE ITS PEER GROUP, YET TRAIL ITS INDEX?
A. The fund's success versus its Lipper peers came by way of strong
stock picking and the strength of the Nordic market relative to the
rest of Europe. However, versus the telecom-rich Nordic index, not
owning enough of heavyweights Nokia and Ericsson spelled trouble, as
their prices doubled during the period.
Q. WHAT OTHER FACTORS INFLUENCED PERFORMANCE?
A. We were rewarded for overweighting Denmark relative to the index.
Gaining exposure to its red-hot telecom sector through mobile operator
GN Store Nordic was a big win for us, as was our stake in windmill
manufacturer Vestas Wind Systems. Reducing the fund's weighting in
cyclicals - or economically sensitive stocks - also helped, as rising
interest rates thwarted a repeat performance of last year's rally. I
sold off the fund's more speculative TMT holdings prior to the
correction to lock in profits. By shifting more assets into
higher-quality tech names and some of the larger industrials, we
reduced the volatility of the portfolio.
Q. WHAT STOCKS HELPED THE MOST? WHICH HURT?
A. Nokia benefited from consistent margin growth in its mobile handset
business. A strong cellular infrastructure business helped buoy
Ericsson, although it continued to struggle on the handset side.
Swedish insurance carrier Skandia Foersaekrings soared on
better-than-expected earnings and volumes in its life insurance and
variable annuity businesses in the U.S. In terms of detractors,
Finnish-based JOT Automation - a maker of production-line equipment
for the telecom industry - slipped on disappointing earnings and a
failed merger attempt. Other tech-related stocks that hurt included
Norway's Merkantildata, Finland's Aldata and Sweden's Nocom. The fund
no longer held JOT Automation or Merkantildata at the close of the
period.
Q. WHAT'S YOUR OUTLOOK?
A. My outlook remains positive for the Nordic markets, as strong
economic growth is expected to continue to boost earnings throughout
the region. With valuation levels stabilizing, I may consider raising
the fund's exposure to technology, although a lot depends on the
direction of interest rates locally and in the U.S. Regardless of
rates, I'll continue to focus my efforts on adding value through
individual stock picking.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET OR OTHER CONDITIONS. FOR MORE INFORMATION, SEE PAGE 3.
NOTE TO SHAREHOLDERS: The Nordic Fund may invest up to 35% of its
total assets in any industry that represents more than 20% of the
Nordic market. As of April 30, 2000, 26% of the fund's total assets
were invested in TV and radio communications equipment companies. They
accounted for approximately 59% of the Nordic market as of April 30,
2000, as represented by the FT/S&P-Actuaries World Nordic Index.
FUND FACTS
GOAL: long-term growth of capital by investing mainly in equity
securities of issuers in Denmark, Finland, Norway and Sweden
FUND NUMBER: 342
TRADING SYMBOL: FNORX
START DATE: November 1, 1995
SIZE: as of April 30, 2000, more than
$241 million
MANAGER: Trygve Toraasen, since 1998; associate portfolio manager,
Fidelity Nordic Fund, 1997-1998; research analyst, 1994-1998; joined
Fidelity in 1994
(checkmark)
NORDIC
INVESTMENT CHANGES
AS OF APRIL 30, 2000
United States 5.3%
Denmark 15.0%
Row: 1, Col: 1, Value: 15.0
Row: 1, Col: 2, Value: 25.2
Row: 1, Col: 3, Value: 0.3
Row: 1, Col: 4, Value: 9.0
Row: 1, Col: 5, Value: 45.2
Row: 1, Col: 6, Value: 5.3
Finland 25.2%
Sweden 45.2%
Luxembourg 0.3%
Norway 9.0%
GEOGRAPHIC DIVERSIFICATION (%
OF FUND'S NET ASSETS)
AS OF OCTOBER 31, 1999
Denmark 10.5%
United States 11.7%
Row: 1, Col: 1, Value: 10.5
Row: 1, Col: 2, Value: 22.4
Row: 1, Col: 3, Value: 7.9
Row: 1, Col: 4, Value: 47.5
Row: 1, Col: 5, Value: 11.7
Finland 22.4%
Sweden 47.5%
Norway 7.9%
<TABLE>
<CAPTION>
<S> <C> <C>
ASSET ALLOCATION
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Stocks 95.9 89.6
Short-Term Investments and 4.1 10.4
Net Other Assets
TOP TEN STOCKS BY ISSUER AS
OF APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Nokia AB (Finland, 14.3 13.1
Communications Equipment)
Telefonaktiebolaget LM 11.5 12.7
Ericsson (Sweden,
Communications Equipment)
Skandia Foersaekrings AB 4.8 4.9
(Sweden, Insurance)
Tele Danmark AS (Denmark, 3.2 2.4
Telephone Services)
Hennes & Mauritz AB (H&M) 2.9 4.3
(Sweden, Apparel Stores)
Vestas Wind Systems AS 2.6 1.8
(Denmark, Industrial
Machinery & Equipment)
Sonera Corp. (Finland, 2.6 1.7
Telephone Services)
GN Store Nordic AS (Denmark, 2.2 1.2
Communications Equipment)
Svenska Handelsbanken AB 2.1 2.6
(Sweden, Banks)
OM Gruppen AB (Sweden, 1.9 0.3
Securities Industry)
48.1 45.0
TOP TEN MARKET SECTORS AS OF
APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Technology 36.6 14.6
Finance 15.6 16.3
Utilities 10.6 5.8
Basic Industries 6.3 6.3
Industrial Machinery & 6.1 20.0
Equipment
Services 5.3 3.9
Health 3.3 3.6
Retail & Wholesale 2.9 4.3
Durables 2.3 3.8
Media & Leisure 2.2 4.0
</TABLE>
NORDIC
INVESTMENTS APRIL 30, 2000 (UNAUDITED)
Showing Percentage of Net Assets
COMMON STOCKS - 95.9%
SHARES VALUE (NOTE 1)
DENMARK - 15.0%
2M Invest AS (a) 9,000 $ 1,428,519
Coloplast AS (B Shares) 46,900 1,975,569
D/S Svenborg Series B 95 1,316,496
Falck AS 23,960 3,320,342
GN Store Nordic AS 66,680 5,413,990
ISS AS (a) 13,300 841,166
NEG Micon AS 46,100 2,076,957
Novo-Nordisk AS (B Shares) 29,789 4,000,818
Sondagsavisen AS (Reg.) 2,470 156,820
Sydbank AS 21,730 689,816
Tele Danmark AS (B Shares) 104,900 7,684,700
Vestas Wind Systems AS 18,800 6,289,391
William Demant Holding AS 7,700 1,170,470
36,365,054
FINLAND - 25.2%
Aldata Solutions Oyj (a) 133,000 975,844
Amer Group PLC Class A 56,800 1,527,226
Comptel Oyj 63,200 1,432,026
Eimo Oyj 218,800 1,994,253
Helsinki Telephone Corp. 33,000 2,613,765
Class E
Keski-Suomen Puhelin Oyj 13,300 1,018,272
(KSP) Series A
Nokia AB 608,400 34,602,752
Novo Group Oyj 96,500 1,041,386
Okobank Class A 23,180 215,500
Perlos Oyj 69,900 2,596,197
Sampo Insurance Co. Ltd. 11,210 425,042
Sonera Corp. 111,300 6,137,385
Stora Enso Oyj 147,170 1,522,467
Teleste Oyj 37,300 984,216
TJ Group PLC (a) 31,400 202,912
UPM-Kymmene Corp. 142,010 3,688,898
60,978,141
LUXEMBOURG - 0.3%
Stolt Comex Seaway SA (a) 62,600 742,142
NORWAY - 9.0%
Bergesen dy ASA (A Shares) 32,100 540,316
Christiania Bank Og 330,600 1,530,770
Kreditkasse
DNB Holding ASA 803,900 2,823,178
EDB Business Partner ASA 29,600 390,643
EDB Business Partner ASA 29,600 7,788
rights 5/31/00 (a)
Ekornes AS 67,700 484,591
Eltek ASA 162,400 2,533,768
Kvaerner ASA (B Shares) (a) 20,000 201,316
NetCom ASA (a) 24,300 964,809
Opticom ASA (a) 2,200 232,520
Orkla-Borregaard AS 169,300 2,622,487
Petroleum Geo-Services ASA (a) 74,800 1,171,214
SHARES VALUE (NOTE 1)
ProSafe ASA (a) 42,000 $ 554,291
Schibsted AS (B Shares) 40,900 850,830
Tandberg ASA (a) 221,900 3,400,044
TGS Nopec Geophysical Co. ASA 109,300 1,210,213
(a)
VMETRO ASA 233,600 2,168,491
21,687,269
SWEDEN - 45.2%
ABB Ltd. 26,119 2,925,253
Allgon AB (B Shares) 90,400 2,004,659
Arkivator AB 44,600 2,127,901
Assa Abloy AB:
rights 6/30/00 (a) 134,800 0
(B Shares) 134,800 2,747,693
Atlas Copco AB (B Shares) 64,800 1,487,770
Avesta Sheffield AB (a) 58,000 206,568
Effnet Group AB (a) 6,900 309,112
Electrolux AB 104,600 1,774,807
Enlight Interactive AB (a) 37,400 598,983
Europolitan Holdings AB 175,200 2,688,200
ForeningsSparbanken AB (A 115,575 1,708,617
Shares)
Gunnebo AB 46,500 617,132
Hennes & Mauritz AB (H&M) (B 264,600 7,052,997
Shares)
Icon Medialab International 14,800 225,428
AB (a)
Investor AB (B Shares) 264,500 3,732,528
Micronic Laser Systems AB (a) 9,200 188,043
Modern Times Group AB (MTG) 54,100 2,672,039
(B Shares) (a)
Munters AB 50,850 652,084
Munters AB (c) 8,300 106,436
Netcom AB (B Shares) (a) 47,300 3,374,485
Nobel Biocare AB 34,920 938,626
Nocom AB (B Shares) (a) 20,300 363,767
Nordic Baltic Holding AB 615,900 3,897,315
OM Gruppen AB 109,700 4,570,424
Proffice AB (B Shares) 5,200 110,653
Readsoft AB (B Shares) (a) 56,900 1,112,025
Resco AB (B Shares) 15,700 474,756
Sandvik AB (B Shares) 83,400 1,998,880
Securitas AB (B Shares) 153,200 3,980,647
Sifo Group AB (B Shares) 164,576 2,119,685
Skandia Foersaekrings AB 244,100 11,728,217
Skanska AB (B Shares) 23,500 860,642
SSAB Swedish Steel (B Shares) 44,100 474,151
Svenska Cellulosa AB (SCA) (B 24,400 464,564
Shares)
Svenska Handelsbanken AB (A 377,896 5,015,307
Shares)
SwitchCore AB (a) 8,550 617,636
Tele1 Europe Holding AB (a) 66,800 1,054,879
Telefonaktiebolaget LM 314,400 27,804,750
Ericsson (B Shares)
Telelogic AB (a) 70,000 533,106
Teligent AB (a) 34,100 763,820
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
SWEDEN - CONTINUED
TV 4 AB (A Shares) 2,300 $ 63,110
Volvo AB (B Shares) 135,900 3,310,439
109,458,134
UNITED STATES OF AMERICA - 1.2%
Pharmacia Corp. unit (a) 26,894 1,352,411
Royal Caribbean Cruises Ltd. 67,300 1,441,420
2,793,831
TOTAL COMMON STOCKS 232,024,571
(Cost $157,886,323)
CASH EQUIVALENTS - 18.2%
Central Cash Collateral Fund, 37,214,834 37,214,834
5.94% (b)
Taxable Central Cash Fund, 6,883,079 6,883,079
5.77% (b)
TOTAL CASH EQUIVALENTS 44,097,913
(Cost $44,097,913)
TOTAL INVESTMENT PORTFOLIO - 276,122,484
114.1%
(Cost $201,984,236)
NET OTHER ASSETS - (14.1)% (34,171,838)
NET ASSETS - 100% $ 241,950,646
LEGEND
(a) Non-income producing
(b) The rate quoted is the annualized seven-day yield of the fund at
period end.
(c) Security exempt from registration under Rule 144A of the
Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the
period end, the value of these securities amounted to $106,436 or 0.0%
of net assets.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $168,869,608 and $81,186,157, respectively.
The fund participated in the security lending program. At period end,
the value of securities loaned amounted to $33,139,089. The fund
received cash collateral of $37,214,834 which was invested in cash
equivalents. Cash collateral includes $2,245,150 received for
unsettled security loans.
The fund participated in the interfund lending program as a borrower.
The average daily loan balance during the period for which loans were
outstanding amounted to $4,936,000. The weighted average interest rate
was 6.21%.
INCOME TAX INFORMATION
At April 30, 2000, the aggregate cost of investment securities for
income tax purposes was $203,305,217. Net unrealized appreciation
aggregated $72,817,267, of which $88,258,378 related to appreciated
investment securities and $15,441,111 related to depreciated
investment securities.
NORDIC
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000 (UNAUDITED)
ASSETS
Investment in securities, at $ 276,122,484
value (cost $201,984,236) -
See accompanying schedule
Receivable for investments 5,705,532
sold
Receivable for fund shares 669,574
sold
Dividends receivable 274,195
Interest receivable 295,594
Other receivables 33,195
Redemption fees receivable 629
TOTAL ASSETS 283,101,203
LIABILITIES
Payable for investments $ 3,504,521
purchased
Payable for fund shares 148,691
redeemed
Accrued management fee 145,501
Other payables and accrued 137,010
expenses
Collateral on securities 37,214,834
loaned, at value
TOTAL LIABILITIES 41,150,557
NET ASSETS $ 241,950,646
Net Assets consist of:
Paid in capital $ 163,651,825
Undistributed net investment 934,281
income
Accumulated undistributed net 3,225,088
realized gain (loss) on
investments and foreign
currency transactions
Net unrealized appreciation 74,139,452
(depreciation) on
investments and assets and
liabilities in foreign
currencies
NET ASSETS, for 7,845,404 $ 241,950,646
shares outstanding
NET ASSET VALUE and $30.84
redemption price per share
($241,950,646 (divided by)
7,845,404 shares)
Maximum offering price per $31.79
share (100/97.00 of $30.84)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30,
2000 (UNAUDITED)
INVESTMENT INCOME $ 2,314,892
Dividends
Interest 15,960
Security lending 73,180
2,404,032
Less foreign taxes withheld (301,810)
TOTAL INCOME 2,102,222
EXPENSES
Management fee $ 710,686
Transfer agent fees 235,853
Accounting and security 53,025
lending fees
Non-interested trustees' 258
compensation
Custodian fees and expenses 104,326
Registration fees 55,575
Audit 10,878
Legal 1,785
Interest 2,574
Reports to shareholders 5,428
Miscellaneous 102
Total expenses before 1,180,490
reductions
Expense reductions (12,585) 1,167,905
NET INVESTMENT INCOME 934,317
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities 4,018,686
Foreign currency transactions (72,930) 3,945,756
Change in net unrealized
appreciation (depreciation)
on:
Investment securities 40,526,886
Assets and liabilities in 5,219 40,532,105
foreign currencies
NET GAIN (LOSS) 44,477,861
NET INCREASE (DECREASE) IN $ 45,412,178
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION Sales $ 371,679
charges paid to FDC
Sales charges - Retained by $ 371,679
FDC
Expense Reductions $ 10,164
Directed brokerage
arrangements
Custodian credits 431
Transfer agent credits 1,990
$ 12,585
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
INCREASE (DECREASE) IN NET SIX MONTHS ENDED APRIL 30, YEAR ENDED OCTOBER 31, 1999
ASSETS 2000 (UNAUDITED)
Operations Net investment $ 934,317 $ 386,363
income
Net realized gain (loss) 3,945,756 11,006,071
Change in net unrealized 40,532,105 21,507,135
appreciation (depreciation)
NET INCREASE (DECREASE) IN 45,412,178 32,899,569
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (328,657) -
From net investment income
From net realized gain (2,464,859) -
TOTAL DISTRIBUTIONS (2,793,516) -
Share transactions Net 133,816,531 41,593,918
proceeds from sales of shares
Reinvestment of distributions 2,711,386 -
Cost of shares redeemed (48,917,133) (65,061,644)
NET INCREASE (DECREASE) IN 87,610,784 (23,467,726)
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
Redemption fees 333,585 97,415
TOTAL INCREASE (DECREASE) 130,563,031 9,529,258
IN NET ASSETS
NET ASSETS
Beginning of period 111,387,615 101,858,357
End of period (including $ 241,950,646 $ 111,387,615
undistributed net investment
income of $934,281 and
$367,863, respectively)
OTHER INFORMATION
Shares
Sold 4,387,733 2,122,892
Issued in reinvestment of 101,817 -
distributions
Redeemed (1,596,520) (3,436,188)
Net increase (decrease) 2,893,030 (1,313,296)
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SIX MONTHS ENDED APRIL 30, 2000 YEARS ENDED OCTOBER 31,
SELECTED PER-SHARE DATA (UNAUDITED) 1999 1998 1997 1996 F
Net asset value, beginning of $ 22.49 $ 16.26 $ 15.94 $ 12.77 $ 10.00
period
Income from Investment
Operations
Net investment income D .14 .07 .03 .10 .17 E
Net realized and unrealized 8.67 6.14 1.46 3.19 2.57
gain (loss)
Total from investment 8.81 6.21 1.49 3.29 2.74
operations
Less Distributions
From net investment income (.06) - (.07) (.05) -
From net realized gain (.45) - (1.18) (.10) -
Total distributions (.51) - (1.25) (.15) -
Redemption fees added to paid .05 .02 .08 .03 .03
in capital
Net asset value, end of period $ 30.84 $ 22.49 $ 16.26 $ 15.94 $ 12.77
TOTAL RETURN B, C 39.75% 38.31% 10.99% 26.24% 27.70%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 241,951 $ 111,388 $ 101,858 $ 73,278 $ 30,871
(000 omitted)
Ratio of expenses to average 1.22% A 1.27% 1.35% 1.42% 2.00% G
net assets
Ratio of expenses to average 1.21% A, H 1.23% H 1.35% 1.42% 2.00%
net assets after expense
reductions
Ratio of net investment .97% A .37% .20% .67% 1.52%
income to average net assets
Portfolio turnover rate 91% A 70% 69% 74% 35%
A ANNUALIZED
B THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
D NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES
OUTSTANDING DURING THE PERIOD.
E INVESTMENT INCOME PER SHARE
REFLECTS A SPECIAL DIVIDEND
WHICH AMOUNTED TO $.16 PER
SHARE.
F FOR THE PERIOD NOVEMBER 1,
1995 (COMMENCEMENT OF
OPERATIONS) TO OCTOBER 31,
1996.
G FMR AGREED TO REIMBURSE A
PORTION OF THE FUND'S
EXPENSES DURING THE PERIOD.
WITHOUT THIS REIMBURSEMENT,
THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
H FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
</TABLE>
PACIFIC BASIN
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value). If Fidelity had not reimbursed certain fund
expenses, the past five year and past 10 year total returns would have
been lower.
CUMULATIVE TOTAL RETURNS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PERIODS ENDED OCTOBER 31, 1994 PAST 6 MONTHS PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY PACIFIC BASIN 9.87% 53.41% 68.31% 124.99%
FIDELITY PACIFIC BASIN 6.57% 48.81% 63.26% 118.24%
(INCL. 3.00% SALES CHARGE)
MSCI Pacific 3.61% 23.21% 2.47% 36.30%
Pacific Region Funds Average 11.92% 40.95% 24.61% 116.18%
</TABLE>
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or 10 years. For example, if you had invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment
would be $1,050. You can compare the fund's returns to the performance
of the Morgan Stanley Capital International (MSCI) Pacific Index - a
market capitalization-weighted index of approximately 400 stocks
traded in five Pacific-region markets. To measure how the fund's
performance stacked up against its peers, you can compare it to the
Pacific region funds average, which reflects the performance of mutual
funds with similar objectives tracked by Lipper Inc. The past six
months average represents a peer group of 60 mutual funds. These
benchmarks include reinvested dividends and capital gains, if any, and
exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1994 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY PACIFIC BASIN 53.41% 10.97% 8.45%
FIDELITY PACIFIC BASIN 48.81% 10.30% 8.12%
(INCL. 3.00% SALES CHARGE)
MSCI Pacific 23.21% 0.49% 3.15%
Pacific Region Funds Average 40.95% 3.96% 7.53%
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER 10 YEARS
Pacific Basin MS Pacific (Net MA tax)
00302 MS003
1990/04/30 9700.00 10000.00
1990/05/31 10638.71 11389.07
1990/06/30 10798.80 10930.22
1990/07/31 11162.64 10847.23
1990/08/31 9678.17 9812.47
1990/09/30 8099.10 8274.06
1990/10/31 9379.82 10061.59
1990/11/30 8521.16 8945.85
1990/12/31 8405.63 9326.65
1991/01/31 8567.85 9617.32
1991/02/28 9342.05 10802.91
1991/03/31 9224.07 10214.44
1991/04/30 9622.24 10476.94
1991/05/31 9555.88 10436.38
1991/06/30 9393.66 9754.39
1991/07/31 9511.64 10083.37
1991/08/31 8870.15 9571.88
1991/09/30 9423.16 10324.85
1991/10/31 9695.97 10764.23
1991/11/30 9238.82 10071.73
1991/12/31 9460.02 10380.80
1992/01/31 9216.70 9978.59
1992/02/29 9128.22 9279.71
1992/03/31 8553.10 8397.18
1992/04/30 8464.62 8012.24
1992/05/31 9142.97 8637.15
1992/06/30 8951.26 7957.97
1992/07/31 8553.10 7847.34
1992/08/31 8803.79 8922.38
1992/09/30 8744.81 8717.95
1992/10/31 8848.03 8410.14
1992/11/30 8811.17 8568.74
1992/12/31 8739.34 8470.67
1993/01/31 8828.67 8454.90
1993/02/28 9342.31 8864.83
1993/03/31 9975.06 9935.73
1993/04/30 10987.45 11518.71
1993/05/31 11523.43 11853.81
1993/06/30 10927.90 11659.47
1993/07/31 11508.54 12348.81
1993/08/31 12037.07 12714.05
1993/09/30 12066.84 12238.55
1993/10/31 13012.24 12510.24
1993/11/30 12372.05 10745.14
1993/12/31 14324.54 11494.18
1994/01/31 14713.13 12824.69
1994/02/28 14857.90 13155.31
1994/03/31 13745.46 12429.12
1994/04/30 14126.43 12966.56
1994/05/31 14545.50 13275.02
1994/06/30 14484.54 13709.28
1994/07/31 14454.07 13415.15
1994/08/31 15139.82 13648.30
1994/09/30 14941.71 13306.70
1994/10/31 15208.39 13643.29
1994/11/30 13958.80 12881.96
1994/12/31 13921.57 12968.63
1995/01/31 12631.74 12149.63
1995/02/28 12425.37 11848.72
1995/03/31 12820.91 12758.41
1995/04/30 12967.10 13301.04
1995/05/31 12889.71 12769.02
1995/06/30 12769.32 12227.87
1995/07/31 13603.41 13109.49
1995/08/31 13457.23 12615.68
1995/09/30 13302.45 12732.54
1995/10/31 12795.12 12113.42
1995/11/30 12683.33 12709.00
1995/12/31 13070.28 13329.31
1996/01/31 13268.06 13351.92
1996/02/29 12984.29 13201.25
1996/03/31 13328.25 13606.14
1996/04/30 14033.36 14298.98
1996/05/31 13637.81 13678.48
1996/06/30 13818.38 13681.31
1996/07/31 13113.28 13052.65
1996/08/31 12855.31 12709.02
1996/09/30 13233.66 13123.77
1996/10/31 12597.34 12514.57
1996/11/30 13078.88 12854.37
1996/12/31 12708.99 12186.23
1997/01/31 11922.24 11161.37
1997/02/28 12172.96 11394.64
1997/03/31 11844.43 10977.60
1997/04/30 12224.84 11206.70
1997/05/31 13478.45 12303.95
1997/06/30 14109.57 13066.79
1997/07/31 14472.69 12755.28
1997/08/31 12717.63 11490.98
1997/09/30 13028.88 11447.66
1997/10/31 11593.71 10058.48
1997/11/30 11196.01 9505.57
1997/12/31 10790.03 9088.65
1998/01/31 11301.74 9582.08
1998/02/28 11328.20 9926.65
1998/03/31 10790.03 9380.29
1998/04/30 11001.77 9195.22
1998/05/31 10534.17 8571.41
1998/06/30 10357.72 8555.21
1998/07/31 10542.99 8406.78
1998/08/31 9307.83 7413.52
1998/09/30 9607.80 7389.87
1998/10/31 10490.06 8670.24
1998/11/30 11213.51 9069.07
1998/12/31 11681.52 9322.46
1999/01/31 11699.19 9390.33
1999/02/28 11557.81 9207.59
1999/03/31 13130.66 10368.85
1999/04/30 14226.36 11062.84
1999/05/31 13492.95 10404.38
1999/06/30 15489.94 11362.42
1999/07/31 16974.43 12228.35
1999/08/31 17663.66 12104.84
1999/09/30 18653.32 12664.08
1999/10/31 19863.88 13155.07
1999/11/30 22461.74 13808.75
1999/12/31 25653.90 14711.84
2000/01/31 23850.81 14002.73
2000/02/29 24198.93 13696.35
2000/03/31 24395.31 14647.42
2000/04/28 21824.47 13630.01
IMATRL PRASUN SHR__CHT 20000430 20000525 161824 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was
invested in Fidelity Pacific Basin Fund on April 30, 1990, and the
current 3.00% sales charge was paid. As the chart shows, by April 30,
2000, the value of the investment would have grown to $21,824 - a
118.24% increase on the initial investment. For comparison, look at
how the Morgan Stanley Capital International Pacific Index did over
the same period. With dividends and capital gains, if any, reinvested,
the same $10,000 would have been $13,630 - a 36.30% increase.
UNDERSTANDING PERFORMANCE
Many markets around the globe offer the
potential for significant growth over time; however,
investing in foreign markets means assuming greater
risks than investing in the United States. Factors like
changes in a country's financial markets, its local
political and economic climate, and the fluctuating
value of its currency create these risks. For these
reasons an international fund's performance may
be more volatile than a fund that invests exclusively
in the United States. Past performance is no
guarantee of future results and you may have a
gain or loss when you sell your shares.
(checkmark)
PACIFIC BASIN
FUND TALK: THE MANAGER'S OVERVIEW
(PORTFOLIO MANAGER PHOTO)
An interview with William Kennedy,
Portfolio Manager of
Fidelity Pacific Basin Fund
Q. HOW DID THE FUND PERFORM, BILL?
A. For the six months that ended April 30, 2000, the fund returned
9.87%, more than doubling the 3.61% return of the Morgan Stanley
Capital International Pacific Index. However, the fund's return
trailed the 11.92% mark posted by the Pacific region funds average
monitored by Lipper Inc. For the 12 months that ended April 30, 2000,
the fund returned 53.41%, compared to 23.21% and 40.95% for the index
and the average, respectively.
Q. WHY DID THE FUND BEAT THE INDEX BUT LAG THE PEER GROUP
AVERAGE DURING THE SIX-MONTH PERIOD?
A. After an extremely strong run in the second half of 1999, the first
four months of 2000 witnessed a sharp worldwide correction in new
economy stocks - that is, those in the technology, telecommunications
and media sectors. Although other countries in the region were
affected by this correction to some degree, Japan bore the brunt of
it. Strong stock selection and a relatively lower allocation of
Japanese stocks helped the fund to outperform the index. However, the
fund's relative performance was hindered by its underweighting in
Japanese bank stocks, which did well during the period. In addition,
the fund had a significantly higher weighting of Japanese stocks than
most of its peers, which hurt performance relative to the Lipper
average.
Q. HOW DID YOU RESPOND TO THESE DEVELOPMENTS?
A. In the second half of the period, I trimmed the fund's technology
holdings a bit and invested more in blue-chip companies, such as
Toyota and Canon, that tend to have dependable earnings growth. I
favored companies of this kind because the Japanese economy is still
struggling, and overcapacity and weak demand continue to plague many
industries. However, many blue-chip stocks benefited from strong
export demand and were therefore insulated to some degree from the
weak domestic economy.
Q. WHY DID YOU UNDERWEIGHT JAPANESE BANKS?
A. Expectations were high for Japanese banks following a massive
government bailout early in 1999. However, as the period progressed, I
saw few changes in the banks' senior management, indicating a lack of
commitment to lasting change. I therefore judged - somewhat
prematurely, as it turned out - that the strength in bank stocks would
be short-lived.
Q. WHAT STOCKS HELPED THE FUND'S PERFORMANCE?
A. China Telecom, a provider of cellular telecommunications equipment
and services, responded well to rapidly increasing penetration of the
Chinese market. The stock also was attractive to investors because of
the company's strong balance sheet. Japanese holding Furukawa Electric
also did well. The company makes WDM (wave division multiplexing)
equipment that enables fiber-optic telecommunications lines to carry
heavier traffic. Hutchison Whampoa, a Hong Kong conglomerate, was
another holding that did well because of the strong market for
cellular communications. The company continued to expand its cellular
operations in both Hong Kong and Europe.
Q. WHAT STOCKS DETRACTED FROM PERFORMANCE?
A. Hikari Tsushin, formerly a standout performer, sold off sharply
when the company revised its near-term earnings forecasts downward.
While I sold approximately half of the fund's position in January, the
fund still held this stock at the end of the period. South Korean
holding Housing and Commercial Bank also performed poorly. Although
the bank's business grew in line with estimates, investors shied away
from South Korean bank stocks due to fears of further repercussions
from the collapse of the huge conglomerate Daewoo. Consequently, I
sold the stock.
Q. WHAT'S YOUR OUTLOOK, BILL?
A. I plan to look for opportunities that will enable the fund to
benefit from superior earnings growth and bona fide restructuring
initiatives in the fund's Japanese investments. This means investing
in companies that are willing to use stock option incentive programs,
EVA (economic value-added) analysis and other progressive performance
management tools that are commonly employed in Western corporations.
Although this could change, I generally look for the fund's Japanese
weighting to stay somewhere between that of the index and the Lipper
average, reflecting an attempt to balance my greater overall
confidence in Japanese investments with the likelihood for stronger
economic growth in other Pacific Basin countries.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET OR OTHER CONDITIONS. FOR MORE INFORMATION, SEE PAGE 3.
FUND FACTS
GOAL: long-term growth of capital by investing mainly in equity
securities of Pacific Basin issuers
FUND NUMBER: 302
TRADING SYMBOL: FPBFX
START DATE: October 1, 1986
SIZE: as of April 30, 2000, more than
$739 million
MANAGER: William Kennedy, since 1998; Hong Kong research director,
1996-1998; analyst, regional power sector and Indian companies,
1994-1996; joined Fidelity in 1994
(checkmark)
PACIFIC BASIN
INVESTMENT CHANGES
AS OF APRIL 30, 2000
United States 3.4%
Australia 6.8%
Thailand 0.6%
Row: 1, Col: 1, Value: 6.8
Row: 1, Col: 2, Value: 9.300000000000001
Row: 1, Col: 3, Value: 1.6
Row: 1, Col: 4, Value: 61.3
Row: 1, Col: 5, Value: 5.1
Row: 1, Col: 6, Value: 1.0
Row: 1, Col: 7, Value: 4.1
Row: 1, Col: 8, Value: 6.8
Row: 1, Col: 9, Value: 0.6000000000000001
Row: 1, Col: 10, Value: 3.4
Taiwan 6.8%
Hong Kong 9.3%
Singapore 4.1%
Other 1.0%
Korea (South) 5.1%
India 1.6%
Japan 61.3%
GEOGRAPHIC DIVERSIFICATION (%
OF FUND'S NET ASSETS)
AS OF OCTOBER 31, 1999
United States 4.9%
Australia 5.3%
Thailand 0.7%
Row: 1, Col: 1, Value: 5.3
Row: 1, Col: 2, Value: 5.4
Row: 1, Col: 3, Value: 0.7000000000000001
Row: 1, Col: 4, Value: 72.59999999999999
Row: 1, Col: 5, Value: 3.5
Row: 1, Col: 6, Value: 1.4
Row: 1, Col: 7, Value: 2.5
Row: 1, Col: 8, Value: 3.0
Row: 1, Col: 9, Value: 0.7000000000000001
Row: 1, Col: 10, Value: 4.9
Hong Kong 5.4%
Taiwan 3.0%
Singapore 2.5%
India 0.7%
Other 1.4%
Korea (South) 3.5%
Japan 72.6%
<TABLE>
<CAPTION>
<S> <C> <C>
ASSET ALLOCATION
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Stocks 96.6 95.1
Short-Term Investments and 3.4 4.9
Net Other Assets
TOP TEN STOCKS BY ISSUER AS
OF APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Sony Corp. (Japan, Consumer 4.3 1.9
Electronics)
Toyota Motor Corp. (Japan, 4.1 1.8
Autos, Tires, & Accessories)
Furukawa Electric Co. Ltd. 2.9 1.2
(Japan, Electrical Equipment)
Hutchison Whampoa Ltd. (Hong 2.9 1.4
Kong, Electrical Equipment)
Softbank Corp. (Japan, 2.6 1.7
Computers & Office Equipment)
Samsung Electronics Co. Ltd. 2.3 1.2
(Korea (South), Electronics)
Takeda Chemical Industries 2.1 1.6
Ltd. (Japan, Drugs &
Pharmaceuticals)
News Corp. Ltd. (Australia, 2.0 0.6
Entertainment)
Taiwan Semiconductor 1.9 0.7
Manufacturing Co. Ltd.
(Taiwan, Electronics)
Daiwa Securities Group, Inc. 1.8 1.1
(Japan, Securities Industry)
26.9 13.2
TOP TEN MARKET SECTORS AS OF
APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Technology 28.6 22.7
Industrial Machinery & 12.8 8.3
Equipment
Durables 12.1 8.9
Finance 10.5 19.6
Utilities 8.8 10.1
Health 5.1 3.7
Media & Leisure 5.0 2.8
Basic Industries 3.7 5.8
Construction & Real Estate 3.6 3.4
Retail & Wholesale 3.4 3.4
</TABLE>
PACIFIC BASIN
INVESTMENTS APRIL 30, 2000 (UNAUDITED)
Showing Percentage of Net Assets
COMMON STOCKS - 96.5%
SHARES VALUE (NOTE 1)
AUSTRALIA - 6.8%
AMP Ltd. 144,200 $ 1,263,084
Australia & New Zealand 148,208 1,024,705
Banking Group Ltd.
Brambles Industries Ltd. 34,053 958,469
Broken Hill Proprietary Co. 557,225 6,000,220
Ltd.
Cable & Wireless Optus Ltd. 1,742,000 5,625,342
(a)
Cochlear Ltd. 93,900 1,220,032
F. H. Faulding & Co. Ltd. 93,544 374,181
John Fairfax Holdings Ltd. 326,900 944,922
National Australia Bank Ltd. 362,858 4,970,961
News Corp. Ltd. 1,142,214 14,504,492
Perpetual Trustees Australia 122,100 1,746,857
Ltd.
Publishing & Broadcasting 295,400 2,294,234
Ltd.
Rio Tinto Ltd. 52,400 778,346
Solution 6 Holdings Ltd. (a) 244,100 747,064
Telstra Corp. Ltd. 751,200 3,219,788
Westfield Holdings Ltd. 81,900 447,168
Westpac Banking Corp. 451,694 2,882,970
WMC Ltd. 296,300 1,230,203
50,233,038
HONG KONG - 9.3%
APT Satellite Holdings Ltd. 325,000 208,625
Asia Satellite 630,000 1,969,483
Telecommunications Holdings
Ltd.
Cheung Kong Holdings Ltd. 674,000 8,047,400
China Telecom Ltd. (a) 1,228,000 9,006,612
Citic Pacific Ltd. 342,000 1,567,498
Dah Sing Financial Holdings 488,800 1,914,008
Ltd.
Dao Heng Bank Group Ltd. 294,000 1,358,822
Giordano International Ltd. 1,392,000 2,278,569
Great Eagle Holdings Ltd. 469,000 800,824
Hongkong Land Holdings Ltd. 661,000 1,004,720
Hutchison Whampoa Ltd. 1,477,000 21,522,320
Johnson Electric Holdings 765,000 6,162,939
Ltd.
Li & Fung Ltd. 1,801,000 6,959,739
Sun Hung Kai Properties Ltd. 281,000 2,227,696
Swire Pacific Ltd. Class A 67,500 381,302
Vtech Holdings Ltd. 754,000 3,126,703
68,537,260
INDIA - 1.6%
Hughes Software Systems Ltd. 49,300 3,334,103
(c)
Infosys Technologies Ltd. 30,720 5,700,618
Pentamedia Graphics Ltd. 111,500 1,623,328
Pentamedia Graphics Ltd. New 61,600 896,834
11,554,883
INDONESIA - 0.3%
Gudang Garam PT Perusahaan 640,000 1,009,464
PT Matahari Putra Prima Tbk 5,350,000 624,448
(a)
Sampoerna, Hanjaya Mandala (a) 712,500 1,031,664
2,665,576
SHARES VALUE (NOTE 1)
JAPAN - 61.3%
Advan Co. Ltd. 27,400 $ 395,265
Advan Co. Ltd. New 27,400 395,265
Advantest Corp. 13,500 3,084,751
Asahi Chemical Industry Co. 389,000 2,237,451
Ltd. (a)
Asahi Glass Co. Ltd. 233,000 2,042,574
Asahi Techno Glass Corp. 161,000 1,280,377
Asatsu-DK, Inc. 58,600 2,416,830
Canon, Inc. 195,000 9,055,312
Casio Computer Co. Ltd. 256,000 2,817,089
Dai-Ichi Kangyo Bank Ltd. 164,000 1,358,831
Daiwa Securities Group, Inc. 880,000 13,427,039
DDI Corp. 424 4,861,846
Fanuc Ltd. 24,500 2,564,638
Fuji Bank Ltd. 406,000 3,378,953
Fuji Coca-Cola Bottling Co. 100,000 947,845
Ltd.
Fujitsu Ltd. 217,000 6,140,374
Furukawa Electric Co. Ltd. 1,553,000 21,527,159
Hikari Tsushin, Inc. 2,400 346,218
Hirose Electric Co. Ltd. 13,000 1,570,002
Hitachi Chemical Co. Ltd. 185,000 4,721,657
Honda Motor Co. Ltd. (a) 125,000 5,531,250
Hoya Corp. 73,000 7,425,559
Ito-Yokado Co. Ltd. 77,000 5,617,995
Japan Tobacco, Inc. 239 1,757,028
KDD Corp. 48,900 5,661,439
Koa Denko Co. Ltd. 100,000 2,903,643
Konami Co. Ltd. 38,300 2,234,816
Kyocera Corp. 65,300 10,843,881
Matsushita Electric 123,000 3,277,950
Industrial Co. Ltd.
Mikasa Coca Cola Bottling Co. 62,100 505,345
Mitsubishi Electric Corp. 1,011,000 8,629,120
Mitsumi Electric Co. Ltd. 76,000 3,134,455
Murata Manufacturing Co. Ltd. 68,000 13,205,104
NEC Corp. 327,000 8,890,142
Nichicon Corp. 174,000 4,666,174
Nidec Corp. 9,300 644,997
Nidec Corp. New 10,300 714,352
Nintendo Co. Ltd. 13,700 2,280,377
Nippon Express Co. Ltd. 378,000 2,383,910
Nippon Paper Industries Co. 217,000 1,372,554
Ltd.
Nippon Sheet Glass Co. Ltd. 685,000 6,081,006
Nippon Steel Corp. 1,744,000 3,918,920
Nippon Telegraph & Telephone 956 11,846,125
Corp.
Nitto Denko Corp. 126,000 4,940,263
Nomura Securities Co. Ltd. 398,000 10,010,727
NTT DoCoMo Inc. 267 8,913,168
Oki Electric Industry Co. 482,000 3,387,461
Ltd. (a)
Omron Corp. 249,000 6,769,558
ORIX Corp. 22,380 3,191,230
Pioneer Corp. 105,000 2,864,343
Q'Sai Co. Ltd. 30,000 1,955,798
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
JAPAN - CONTINUED
Rengo Co. Ltd. 315,000 $ 1,805,992
Ricoh Co. Ltd. 183,000 3,858,332
Rohm Co. Ltd. 30,400 10,176,438
Ryohin Keikaku Co. Ltd. 26,700 4,950,388
Sakura Bank Ltd. 1,418,000 9,939,375
Sanyo Electric Co. Ltd. 570,000 3,800,351
Shin-Etsu Chemical Co. Ltd. 119,000 6,283,429
Shinki Co. Ltd. 90,400 2,148,400
Shiseido Co. Ltd. 105,000 1,326,336
Skylark Co. Ltd. 117,000 3,397,263
Softbank Corp. 25,700 6,321,620
Softbank Corp. New 51,400 12,643,240
Sony Corp. 142,600 16,087,062
Sony Corp. New 138,100 15,579,406
Square Co. Ltd. 4,200 308,766
Sumitomo Trust & Banking Ltd. 342,000 2,498,428
Takeda Chemical Industries 231,000 15,187,812
Ltd.
The Suruga Bank Ltd. 112,000 1,916,035
THK Co. Ltd. 117,500 4,943,823
Tokai Corp. 295,000 3,246,255
Toko, Inc. 968,000 8,056,223
Tokyo Broadcasting System, 135,000 5,867,394
Inc.
Tokyo Denpa Co. Ltd. 24,200 1,615,720
Tokyo Electron Ltd. 12,000 1,954,134
Tokyo Seimitsu Co. Ltd. 32,700 3,416,959
Tokyo Tomin Bank Ltd. 80,400 2,527,834
Toshiba Corp. 602,000 5,834,067
Toyoda Gosei Co. Ltd. 98,000 5,663,954
Toyota Motor Corp. 605,000 30,231,102
Trans Cosmos, Inc. 12,200 2,425,559
Tsubaki Nakashima Co. Ltd. 62,500 781,394
Union Tool Co. 9,400 1,274,311
Yamada Denki Co. Ltd. 43,000 3,578,694
Yamanouchi Pharmaceutical Co. 185,000 9,768,356
Ltd.
Yoshitomi Pharmaceutical 251,000 3,528,019
Industries Ltd.
453,070,637
KOREA (SOUTH) - 5.1%
Dacom Corp. 2,210 320,622
Korea Electric Power Corp. 128,500 3,763,236
Korea Telecom sponsored ADR 48,300 1,666,350
LG Chemical Ltd. 25,750 591,687
LG Information & 820 63,176
Communications Ltd.
Pohang Iron & Steel Co. Ltd. 11,700 931,902
Samsung Electro-Mechanics Co. 87,170 5,930,467
Samsung Electronics Co. Ltd. 61,640 16,663,215
SK Telecom Co. Ltd. 21,900 5,821,582
Trigem Computer, Inc. 30,996 1,790,353
37,542,590
MALAYSIA - 0.5%
Amway Holdings BHD 144,000 473,684
SHARES VALUE (NOTE 1)
Commerce Asset Holding BHD 527,000 $ 1,483,921
Tanjong PLC 570,000 1,575,000
3,532,605
NEW ZEALAND - 0.2%
Telecom Corp. of New Zealand 320,200 1,352,477
Ltd.
Warehouse Group Ltd. (The) 133,200 274,842
1,627,319
PAPUA NEW GUINEA - 0.0%
Oil Search Ltd. (a) 397,800 360,058
SINGAPORE - 4.1%
Chartered Semiconductor 45,000 3,931,875
Manufacturing Ltd. ADR
Datacraft Asia Ltd. 441,000 3,307,500
DBS Group Holdings Ltd. 290,239 3,996,845
Natsteel Electronics Ltd. 389,000 2,233,929
Oversea-Chinese Banking Corp. 294,000 2,015,705
Ltd.
Overseas Union Bank Ltd. 323,452 1,478,421
Parkway Holdings Ltd. 526,000 1,510,343
Singapore Airlines Ltd. 310,000 3,215,353
Singapore Press Holdings Ltd. 145,694 2,851,556
Singapore Technologies 1,892,000 2,660,885
Engineering Ltd.
St. Assembly Test Services 4,100 170,919
Ltd. ADR
United Overseas Bank Ltd. 197,152 1,374,807
Venture Manufacturing 121,000 1,418,107
Singapore Ltd.
30,166,245
TAIWAN - 6.8%
Acer, Inc. (a) 448,000 937,147
Advanced Semiconductor 605,000 1,937,898
Engineering, Inc. (a)
Asustek Computer, Inc. 187,000 2,072,005
China Development Corp. (a) 1,264,000 1,912,835
D-Link Corp. 458,000 1,347,279
Far Eastern Textile Ltd. 846,000 1,299,624
Hon Hai Precision Industries 607,000 5,852,754
Co. Ltd. (a)
Macronix International Co. 1,394,000 4,214,578
Ltd. (a)
Microelectronics Technology, 356,000 1,658,114
Inc. (a)
Procomp Informatics Co. Ltd. 313,000 2,455,303
Taishin International Bank 2,555,000 1,327,815
Taiwan Semiconductor 2,199,130 14,160,111
Manufacturing Co. Ltd. (a)
United Microelectronics Corp. 3,216,000 10,879,425
50,054,888
THAILAND - 0.5%
Advanced Info Service PCL 101,500 1,188,631
(For. Reg.) (a)
BEC World PCL (For.Reg.) 89,000 588,893
Shinawatra Computer & 66,600 388,216
Communications PCL (For.
Reg.) (a)
Siam Cement PCL (For.Reg.) (a) 37,900 875,725
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
THAILAND - CONTINUED
TelecomAsia Corp. PCL (a) 598,000 $ 800,788
TelecomAsia Corp. PCL rights 206,115 149,782
4/30/08 (a)
3,992,035
TOTAL COMMON STOCKS 713,337,134
(Cost $520,124,580)
PREFERRED STOCKS - 0.1%
CONVERTIBLE PREFERRED STOCKS
- 0.1%
THAILAND - 0.1%
Siam Commercial Bank PLC 5.25% 490,500 392,812
NONCONVERTIBLE PREFERRED
STOCKS - 0.0%
TAIWAN - 0.0%
Taishin International Bank 363,000 116,274
TOTAL PREFERRED STOCKS 509,086
(Cost $557,697)
CASH EQUIVALENTS - 6.2%
Central Cash Collateral Fund, 14,151,965 14,151,965
5.94% (b)
Taxable Central Cash Fund, 32,067,633 32,067,633
5.77% (b)
TOTAL CASH EQUIVALENTS 46,219,598
(Cost $46,219,598)
TOTAL INVESTMENT PORTFOLIO - 760,065,818
102.8%
(Cost $566,901,875)
NET OTHER ASSETS - (2.8)% (20,914,747)
NET ASSETS - 100% $ 739,151,071
LEGEND
(a) Non-income producing
(b) The rate quoted is the annualized seven-day yield of the fund at
period end.
(c) Security purchased on a delayed delivery or when-issued basis.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $724,473,409 and $704,836,074.
The fund placed a portion of its portfolio transactions with brokerage
firms which are affiliates of Fidelity Management & Research Company.
The commissions paid to these affiliated firms were $22,777 for the
period.
The fund participated in the security lending program. At period end,
the value of securities loaned amounted to $12,426,416. The fund
received cash collateral of $14,151,965 which was invested in cash
equivalents. Cash collateral includes $905,100 received for unsettled
loans.
The fund participated in the interfund lending program as a borrower.
The average daily loan balance during the period for which loans were
outstanding amounted to $10,139,500. The weighted average interest
rate was 5.92%. Interest expense includes $33,436 paid under the
interfund lending program.
The fund participated in the bank borrowing program. The average daily
loan balance during the period for which loans were outstanding
amounted to $2,348,000. The weighted average interest rate was 6.23%.
Interest expense includes $807 paid under the bank borrowing program.
INCOME TAX INFORMATION
At April 30, 2000, the aggregate cost of investment securities for
income
tax purposes was $569,163,956. Net unrealized appreciation aggregated
$190,901,862, of which $222,127,331 related to appreciated investment
securities and $31,225,469 related to depreciated investment
securities.
At October 31, 1999, the fund had a capital loss carryforward of
approximately $45,590,000 of which $12,609,000 and $32,981,000
will expire on October 31, 2005 and 2006, respectively.
PACIFIC BASIN
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000 (UNAUDITED)
ASSETS
Investment in securities, at $ 760,065,818
value (cost $566,901,875) -
See accompanying schedule
Foreign currency held at 111,181
value (cost $111,181)
Receivable for investments 1,268,275
sold
Receivable for fund shares 921,667
sold
Dividends receivable 1,160,966
Interest receivable 90,707
Redemption fees receivable 5,694
Other receivables 11,275
TOTAL ASSETS 763,635,583
LIABILITIES
Payable for investments
purchased
Regular delivery $ 5,789,468
Delayed delivery 706,454
Payable for fund shares 2,724,124
redeemed
Accrued management fee 536,074
Other payables and accrued 576,427
expenses
Collateral on securities 14,151,965
loaned, at value
TOTAL LIABILITIES 24,484,512
NET ASSETS $ 739,151,071
Net Assets consist of:
Paid in capital $ 545,787,986
Distributions in excess of (10,927,485)
net investment income
Accumulated undistributed net 11,138,987
realized gain (loss) on
investments and foreign
currency transactions
Net unrealized appreciation 193,151,583
(depreciation) on
investments and assets and
liabilities in foreign
currencies
NET ASSETS, for 30,253,002 $ 739,151,071
shares outstanding
NET ASSET VALUE and $24.43
redemption price per share
($739,151,071 (divided by)
30,253,002 shares)
Maximum offering price per $25.19
share (100/97.00 of $24.43)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30,
2000 (UNAUDITED)
INVESTMENT INCOME $ 2,517,672
Dividends
Interest 728,606
Security lending 78,578
3,324,856
Less foreign taxes withheld (285,726)
TOTAL INCOME 3,039,130
EXPENSES
Management fee Basic fee $ 3,173,004
Performance adjustment 344,318
Transfer agent fees 1,067,902
Accounting and security 229,703
lending fees
Non-interested trustees' 2,343
compensation
Custodian fees and expenses 341,490
Registration fees 84,187
Audit 13,257
Legal 13,566
Interest 34,243
Miscellaneous 264
Total expenses before 5,304,277
reductions
Expense reductions (60,538) 5,243,739
NET INVESTMENT INCOME (LOSS) (2,204,609)
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities 57,500,505
Foreign currency transactions 94,924 57,595,429
Change in net unrealized
appreciation (depreciation)
on:
Investment securities 9,187,087
Assets and liabilities in (38,239) 9,148,848
foreign currencies
NET GAIN (LOSS) 66,744,277
NET INCREASE (DECREASE) IN $ 64,539,668
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION Sales $ 939,715
charges paid to FDC
Sales charges - Retained by $ 939,637
FDC
Deferred sales charges $ 6,992
withheld by FDC
Expense Reductions
Directed brokerage $ 42,264
arrangements
Transfer agent credits 18,274
$ 60,538
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
INCREASE (DECREASE) IN NET SIX MONTHS ENDED APRIL 30, YEAR ENDED OCTOBER 31, 1999
ASSETS 2000 (UNAUDITED)
Operations Net investment $ (2,204,609) $ (832,843)
income (loss)
Net realized gain (loss) 57,595,429 54,809,796
Change in net unrealized 9,148,848 177,169,218
appreciation (depreciation)
NET INCREASE (DECREASE) IN 64,539,668 231,146,171
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (9,139,092) (345,403)
in excess of net investment
income
Share transactions Net 544,723,783 388,881,157
proceeds from sales of shares
Reinvestment of distributions 8,972,790 338,512
Cost of shares redeemed (531,893,713) (156,304,703)
NET INCREASE (DECREASE) IN 21,802,860 232,914,966
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
Redemption fees 2,066,789 701,135
TOTAL INCREASE (DECREASE) 79,270,225 464,416,869
IN NET ASSETS
NET ASSETS
Beginning of period 659,880,846 195,463,977
End of period (including $ 739,151,071 $ 659,880,846
distributions in excess of
net investment income of
$11,387,496 and $43,795,
respectively)
OTHER INFORMATION
Shares
Sold 20,817,981 21,838,288
Issued in reinvestment of 352,256 26,201
distributions
Redeemed (20,276,601) (8,941,281)
Net increase (decrease) 893,636 12,923,208
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SIX MONTHS ENDED APRIL 30, 2000 YEARS ENDED OCTOBER 31,
SELECTED PER-SHARE DATA (UNAUDITED) 1999 1998 1997 1996
Net asset value, beginning of $ 22.48 $ 11.89 $ 13.41 $ 14.65 $ 14.88
period
Income from Investment
Operations
Net investment income (loss) D (.07) (.04) (.02) (.01) .05
Net realized and unrealized 2.24 10.62 (1.26) (1.16) (.29)
gain (loss)
Total from investment 2.17 10.58 (1.28) (1.17) (.24)
operations
Less Distributions
From net investment income - - - (.01) -
In excess of net investment (.28) (.02) (.25) (.07) -
income
From net realized gain - - - - -
Total distributions (.28) (.02) (.25) (.08) -
Redemption fees added to paid .06 .03 .01 .01 .01
in capital
Net asset value, end of period $ 24.43 $ 22.48 $ 11.89 $ 13.41 $ 14.65
TOTAL RETURN B, C 9.87% 89.36% (9.52)% (7.97)% (1.55)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 739,151 $ 659,881 $ 195,464 $ 239,517 $ 572,150
(000 omitted)
Ratio of expenses to average 1.23% A 1.37% 1.73% 1.32% 1.26%
net assets
Ratio of expenses to average 1.22% A, F 1.36% F 1.72% F 1.31% F 1.24% F
net assets after expense
reductions
Ratio of net investment (.51)% A (.24)% (.16)% (.04)% .30%
income (loss) to average net
assets
Portfolio turnover rate 172% A 101% 57% 42% 85%
A ANNUALIZED
B THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
D NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
E FMR AGREED TO REIMBURSE A
PORTION OF THE FUND'S
EXPENSES DURING THE PERIOD.
WITHOUT THIS REIMBURSEMENT,
THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
F FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA 1995
Net asset value, beginning of $ 19.96
period
Income from Investment
Operations
Net investment income (loss) D .07
Net realized and unrealized (3.12)
gain (loss)
Total from investment (3.05)
operations
Less Distributions
From net investment income -
In excess of net investment (.02)
income
From net realized gain (2.02)
Total distributions (2.04)
Redemption fees added to paid .01
in capital
Net asset value, end of period $ 14.88
TOTAL RETURN B, C (15.87)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 317,635
(000 omitted)
Ratio of expenses to average 1.32% E
net assets
Ratio of expenses to average 1.32%
net assets after expense
reductions
Ratio of net investment .44%
income (loss) to average net
assets
Portfolio turnover rate 65%
A ANNUALIZED
B THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
D NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
E FMR AGREED TO REIMBURSE A
PORTION OF THE FUND'S
EXPENSES DURING THE PERIOD.
WITHOUT THIS REIMBURSEMENT,
THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
F FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
</TABLE>
SOUTHEAST ASIA
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value). If Fidelity had not reimbursed certain fund
expenses, the life of fund total returns would have been lower.
CUMULATIVE TOTAL RETURNS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PERIODS ENDED OCTOBER 31, 1994 PAST 6 MONTHS PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
FIDELITY SOUTHEAST ASIA 25.36% 42.08% 28.25% 62.75%
FIDELITY SOUTHEAST ASIA 21.60% 37.82% 24.41% 57.87%
(INCL. 3.00% SALES CHARGE)
MSCI Far East Free ex-Japan 5.22% 11.14% -5.23% 35.03%
Pacific Region ex-Japan 13.76% 27.50% 12.90% n/a
Funds Average
</TABLE>
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or since the fund started on April 19, 1993. For example, if you
had invested $1,000 in a fund that had a 5% return over the past year,
the value of your investment would be $1,050. You can compare the
fund's returns to the performance of the Morgan Stanley Capital
International AC Far East Free ex-Japan Index - a market
capitalization-weighted index of over 350 stocks traded in eight Asian
markets, excluding Japan. To measure how the fund's performance
stacked up against its peers, you can compare it to the Pacific region
ex-Japan funds average, which reflects the performance of mutual funds
with similar objectives tracked by Lipper Inc. The past six months
average represents a peer group of 85 mutual funds. These benchmarks
include reinvested dividends and capital gains, if any, and exclude
the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1994 PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
FIDELITY SOUTHEAST ASIA 42.08% 5.10% 7.17%
FIDELITY SOUTHEAST ASIA 37.82% 4.46% 6.70%
(INCL. 3.00% SALES CHARGE)
MSCI Far East Free ex-Japan 11.14% -1.07% 4.36%
Pacific Region ex-Japan 27.50% 2.01% n/a
Funds Average
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
Southeast Asia MS AC FarEast x-JPN Free
00351 MS008
1993/04/19 9700.00 10000.00
1993/04/30 9651.50 10334.87
1993/05/31 10078.30 10940.18
1993/06/30 9835.80 10654.62
1993/07/31 9826.10 10724.32
1993/08/31 10543.90 11621.94
1993/09/30 10873.70 12070.62
1993/10/31 12842.80 14293.89
1993/11/30 13240.50 14197.70
1993/12/31 15992.99 17649.16
1994/01/31 14696.78 16443.60
1994/02/28 14004.83 15499.18
1994/03/31 12221.33 13813.26
1994/04/30 12533.20 14464.00
1994/05/31 13069.22 15080.71
1994/06/30 12299.30 14410.31
1994/07/31 12952.27 15215.09
1994/08/31 14141.27 16454.30
1994/09/30 14131.52 16189.39
1994/10/31 14238.73 16504.06
1994/11/30 12845.07 14932.20
1994/12/31 12513.71 14563.35
1995/01/31 11198.01 13001.39
1995/02/28 12162.86 14315.36
1995/03/31 12318.79 14384.05
1995/04/30 12309.04 14247.91
1995/05/31 13712.45 15983.89
1995/06/30 13702.71 15743.54
1995/07/31 14053.56 15992.14
1995/08/31 13507.79 15231.23
1995/09/30 13683.21 15495.53
1995/10/31 13527.28 15260.13
1995/11/30 13293.38 15099.84
1995/12/31 14038.25 15851.21
1996/01/31 15771.98 17303.97
1996/02/29 15425.24 17244.56
1996/03/31 15296.45 17383.36
1996/04/30 15623.38 17869.83
1996/05/31 15682.82 17695.92
1996/06/30 15237.00 17339.37
1996/07/31 14038.25 16090.16
1996/08/31 14672.30 16671.11
1996/09/30 15147.84 17092.13
1996/10/31 14553.42 16769.26
1996/11/30 15603.56 17729.34
1996/12/31 15464.51 17616.46
1997/01/31 15454.22 17872.46
1997/02/28 15690.87 17938.92
1997/03/31 14620.81 16958.43
1997/04/30 14301.84 16525.63
1997/05/31 15124.97 17364.80
1997/06/30 15618.85 17829.04
1997/07/31 16123.01 17915.87
1997/08/31 14013.75 14617.20
1997/09/30 13231.78 14507.38
1997/10/31 9826.09 10968.31
1997/11/30 9754.06 10270.65
1997/12/31 9451.16 9811.01
1998/01/31 8882.44 8984.79
1998/02/28 10226.69 11046.17
1998/03/31 10195.67 10776.58
1998/04/30 9296.05 9666.86
1998/05/31 8044.86 8169.72
1998/06/30 7383.07 7280.45
1998/07/31 7269.33 7078.47
1998/08/31 6349.03 5984.68
1998/09/30 7093.54 6629.52
1998/10/31 8406.78 8439.82
1998/11/30 8944.48 9208.51
1998/12/31 8903.49 9338.19
1999/01/31 8582.17 9033.11
1999/02/28 8447.43 8873.12
1999/03/31 9204.07 9870.53
1999/04/30 11111.22 12149.62
1999/05/31 10738.08 11603.29
1999/06/30 12790.34 13616.17
1999/07/31 12634.86 13094.65
1999/08/31 12925.08 13308.88
1999/09/30 11909.32 12243.67
1999/10/31 12593.40 12833.26
1999/11/30 14676.76 14113.61
1999/12/31 17053.11 15138.20
2000/01/31 17011.59 14813.42
2000/02/29 17416.38 14032.74
2000/03/31 18298.61 14699.41
2000/04/28 15786.84 13502.54
IMATRL PRASUN SHR__CHT 20000430 20000524 104205 R00000000000088
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Southeast Asia Fund on April 19, 1993, when the
fund started, and the current 3.00% sales charge was paid. As the
chart shows, by April 30, 2000, the value of the investment would have
been $15,787 - a 57.87% increase on the initial investment. For
comparison, look at how the Morgan Stanley Capital International AC
Far East Free-ex Japan Index did over the same period. With dividends
and capital gains, if any, reinvested, the same $10,000 would have
been $13,503 - a 35.03% increase.
UNDERSTANDING PERFORMANCE
Many markets around the globe offer the
potential for significant growth over time; however,
investing in foreign markets means assuming greater
risks than investing in the United States. Factors like
changes in a country's financial markets, its local
political and economic climate, and the fluctuating
value of its currency create these risks. For these
reasons an international fund's performance may
be more volatile than a fund that invests exclusively
in the United States. Past performance is no
guarantee of future results and you may have a
gain or loss when you sell your shares.
(checkmark)
SOUTHEAST ASIA
FUND TALK: THE MANAGER'S OVERVIEW
(PORTFOLIO MANAGER PHOTO)
An interview with
Allan Liu, Portfolio
Manager of Fidelity
Southeast Asia Fund
Q. HOW DID THE FUND PERFORM, ALLAN?
A. Both absolute and relative performance were strong. For the six
months that ended April 30, 2000, the fund returned 25.36%, outpacing
the Morgan Stanley Capital International AC Far East Free ex-Japan
Index and the Pacific region ex-Japan funds average tracked by Lipper
Inc., which returned 5.22% and 13.76%, respectively. For the 12 months
that ended April 30, 2000, the fund returned 42.08%, bettering the
11.14% return of the index and the 27.50% return of the average.
Q. WHY DID THE FUND OUTPERFORM THE INDEX AND THE PEER GROUP AVERAGE BY
SUCH WIDE MARGINS?
A. Strong stock selection in a variety of markets, including South
Korea, Hong Kong, Taiwan, Singapore and Malaysia, and overweighting
the favored technology and telecommunications sectors were the biggest
factors influencing the fund's performance. I tried to focus on stocks
with solid earnings growth prospects and avoided so-called "concept"
stocks - those whose main appeal is an intriguing business strategy.
This focus was particularly helpful when technology stocks encountered
a severe correction in the second half of the period. My emphasis on
investing in industry leaders also paid off, as many of these
companies increased their market share against a backdrop of strong
economic growth in the region. Finally, increasing the fund's
allocation of Malaysian securities helped due to the surging Malaysian
stock market.
Q. THE FINANCE WEIGHTING OF THE FUND DROPPED SHARPLY FROM 20.1% OF NET
ASSETS SIX MONTHS AGO TO 6.9% AT THE END OF THE PERIOD. WHY WAS THAT?
A. Upward pressure on interest rates emanating in large part from the
U.S. was one factor in my decision to decrease the fund's finance
holdings. Furthermore, even though many Southeast Asian economies
showed rapid growth during the period, the loan growth of most banks
was not particularly strong. Most companies favored repairing or
strengthening their balance sheets over increasing debt. Although I
was interested in bank stocks as long as interest rates were falling
sharply, higher rates signaled that there were better opportunities in
other sectors.
Q. WHAT STOCKS DID WELL FOR THE FUND?
A. South Korean holding Samsung Electronics was one of the fund's best
performers. One of the largest and most efficient manufacturers of
DRAM (dynamic random access memory) in the world, this company
benefited from its ability to continue lowering its cost structure.
China Telecom also contributed positively to performance, buoyed by
strong growth in the Chinese market for cellular telephones. Another
strong stock was Hutchison Whampoa. Known primarily as a container
terminal operator and Hong Kong cellular phone company as recently as
five years ago, Hutchison Whampoa has transformed itself into a
globally diversified company with a strong international cellular
telecommunications division.
Q. WHAT STOCKS WERE DISAPPOINTING?
A. Housing & Commercial Bank was weak on general concerns about the
South Korean banking system resulting from the recent collapse of the
huge Daewoo conglomerate. I considered the stock attractively valued
and maintained the fund's position as the period ended. KT Freetel, a
South Korean cellular phone company, saw its profit margins erode on
increased competitive pressures. I held on to this stock in view of
its reasonable valuation compared with cellular phone operators in
other countries.
Q. WHAT'S YOUR OUTLOOK, ALLAN?
A. Going forward, one important development will be the direction of
interest rates. A lot will depend on how aggressively the U.S.
continues to raise rates and whether higher rates noticeably slow
global economic growth and demand. Fortunately, many Southeast Asian
countries now have freely floating currency exchange rates versus the
U.S. dollar, which helps to relieve the pressure for interest rates in
those countries to follow U.S. rates higher. The Hong Kong dollar, on
the other hand, is pegged to the U.S. dollar at a fixed exchange rate.
Hong Kong interest rates must therefore rise in tandem with U.S.
rates, and this is one reason why the fund was underweighted in Hong
Kong stocks during the period. However, as a fund manager, I
concentrate more on individual companies than on geographical
allocations. I see my job as identifying those companies that are
strong enough to prosper under a variety of scenarios.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET OR OTHER CONDITIONS. FOR MORE INFORMATION, SEE PAGE 3.
FUND FACTS
GOAL: long-term capital appreciation by investing mainly in equity
securities of Southeast Asian issuers
FUND NUMBER: 351
TRADING SYMBOL: FSEAX
START DATE: April 19, 1993
SIZE: as of April 30, 2000, more than
$451 million
MANAGER: Allan Liu, since inception; manager, various funds for
non-U.S. investors; analyst, Southeast Asian markets, 1987-1990;
joined Fidelity in 1987
(checkmark)
SOUTHEAST ASIA
INVESTMENT CHANGES
AS OF APRIL 30, 2000
United States 7.7%
Row: 1, Col: 1, Value: 27.6
Row: 1, Col: 2, Value: 0.5
Row: 1, Col: 3, Value: 20.8
Row: 1, Col: 4, Value: 9.699999999999999
Row: 1, Col: 5, Value: 0.6000000000000001
Row: 1, Col: 6, Value: 9.800000000000001
Row: 1, Col: 7, Value: 18.6
Row: 1, Col: 8, Value: 1.6
Row: 1, Col: 9, Value: 3.1
Row: 1, Col: 10, Value: 7.7
United Kingdom 3.1%
Thailand 1.6%
Hong Kong 27.6%
Taiwan 18.6%
Indonesia 0.5%
Singapore 9.8%
Other 0.6%
Malaysia 9.7%
Korea (South) 20.8%
GEOGRAPHIC DIVERSIFICATION (%
OF FUND'S NET ASSETS)
AS OF OCTOBER 31, 1999
United States 2.8%
United Kingdom 5.2%
Row: 1, Col: 1, Value: 28.1
Row: 1, Col: 2, Value: 1.6
Row: 1, Col: 3, Value: 19.7
Row: 1, Col: 4, Value: 8.5
Row: 1, Col: 5, Value: 1.9
Row: 1, Col: 6, Value: 12.8
Row: 1, Col: 7, Value: 17.0
Row: 1, Col: 8, Value: 2.4
Row: 1, Col: 9, Value: 5.2
Row: 1, Col: 10, Value: 2.8
Thailand 2.4%
Hong Kong 28.1%
Taiwan 17.0%
Indonesia 1.6%
Singapore 12.8%
Other 1.9%
Korea (South) 19.7%
Malaysia 8.5%
<TABLE>
<CAPTION>
<S> <C> <C>
ASSET ALLOCATION
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Stocks 92.3 97.2
Short-Term Investments and 7.7 2.8
Net Other Assets
TOP TEN STOCKS BY ISSUER AS
OF APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Samsung Electronics Co. Ltd. 10.6 8.4
(Korea (South), Electronics)
Hutchison Whampoa Ltd. 7.6 6.6
(Hong Kong, Electrical
Equipment)
China Telecom (Hong Kong) 6.5 3.8
Ltd. (Hong Kong, Cellular)
Taiwan Semiconductor 6.5 4.7
Manufacturing Co. Ltd.
(Taiwan, Electronics)
Cheung Kong Holdings Ltd. 4.4 4.2
(Hong Kong, Real Estate)
United Microelectronics Corp. 4.1 2.0
(Taiwan, Electronics)
Asustek Computer, Inc. 3.3 1.3
(Taiwan, Computers & Office
Equipment)
HSBC Holdings PLC (United 3.1 5.2
Kingdom, Banks)
SK Telecom Co. Ltd. (Korea 3.0 0.5
(South), Cellular)
Unisem (M) BHD (Malaysia, 2.6 1.0
Electronics)
51.7 37.7
TOP TEN MARKET SECTORS AS OF
APRIL 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Technology 40.9 31.1
Utilities 16.2 12.0
Industrial Machinery & 11.6 8.3
Equipment
Construction & Real Estate 7.7 9.8
Finance 6.9 20.1
Media & Leisure 3.4 4.1
Retail & Wholesale 2.2 1.5
Nondurables 1.1 2.6
Durables 0.7 2.5
Services 0.6 0.0
</TABLE>
SOUTHEAST ASIA
INVESTMENTS APRIL 30, 2000 (UNAUDITED)
Showing Percentage of Net Assets
COMMON STOCKS - 92.1%
SHARES VALUE (NOTE 1)
AUSTRALIA - 0.0%
Wine Planet Holdings Ltd. (a) 1,000,000 $ 110,951
CHINA - 0.1%
Nanjing Panda Electronics Co. 1,500,000 625,875
(H Shares) (a)
HONG KONG - 27.6%
Cable & Wireless Hkt Ltd. 3,347,417 7,740,900
Cheung Kong Holdings Ltd. 1,645,000 19,640,908
China Telecom (Hong Kong) 4,014,000 29,440,181
Ltd. (a)
Computer & Technologies 1,010,000 1,160,532
Holdings Ltd. (a)
Giordano International Ltd. 1,000,000 1,636,903
Hutchison Whampoa Ltd. 2,367,000 34,491,084
Johnson Electric Holdings 994,000 8,007,793
Ltd.
Li & Fung Ltd. 2,104,000 8,130,644
Pacific Century CyberWorks 262,000 487,733
Ltd.
Sun Hung Kai Properties Ltd. 1,272,310 10,086,549
Television Broadcasts Ltd. 548,000 3,746,389
124,569,616
INDIA - 0.2%
Pentamedia Graphics Ltd. 73,000 1,062,806
INDONESIA - 0.5%
Gudang Garam PT Perusahaan 780,000 1,230,284
PT Lippo Bank Tbk:
rights (a) 36,000,000 0
warrants 5/1/02 (a) 36,000,000 0
Sampoerna, Hanjaya Mandala (a) 700,000 1,013,565
2,243,849
KOREA (SOUTH) - 20.8%
Cheil Jedang Corp. 37,600 1,931,246
Dacom Corp. 7,700 1,117,099
Hansol M.com Co. Ltd. (a) 30,000 598,784
Housing & Commercial Bank 262,930 4,501,618
Hyundai Engineering & 8 29
Construction Co. Ltd. (a)
Kookmin Bank 90,000 973,192
Korea Electric Power Corp. 161,000 4,715,027
Korea Telecom 91,700 6,263,448
Korea Telecom Freetel Co. 30,000 1,724,713
Ltd. (a)
LG Electronics, Inc. 45,000 1,200,271
Pohang Iron & Steel Co. Ltd. 27,000 2,150,544
Samsung Corp. sponsored GDR 21 58
Unit (a)
Samsung Electro-Mechanics Co. 103,000 7,007,435
Samsung Electronics Co. Ltd. 176,234 47,641,547
SK Telecom Co. Ltd. 51,060 13,573,059
Trigem Computer, Inc. 3,009 173,802
93,571,872
MALAYSIA - 9.7%
Berjaya Sports Toto BHD 308,833 646,111
Commerce Asset Holding BHD 860,000 2,421,579
Gemtech Resources BHD 400,000 947,368
SHARES VALUE (NOTE 1)
Genting BHD 740,000 $ 2,979,474
Hong Leong Industries BHD 550,000 1,896,053
Malayan Banking BHD 497,000 2,066,474
Malaysia Airports Holdings BHD 2,000,000 1,800,000
Malaysian Pacific Industries 725,000 8,108,553
PhileoAllied BHD (a) 1,200,000 1,080,000
Public Bank BHD (For. Reg.) 304,000 424,000
Tanjong PLC 258,000 712,895
Technology Resources 2,500,000 3,197,368
Industries BHD
Telekom Malaysia BHD 910,000 3,161,053
Unisem (M) BHD 1,344,000 11,936,842
United Engineers BHD (a) 850,000 2,192,105
United Engineers BHD warrants 170,000 237,105
11/18/02 (a)
43,806,980
PHILIPPINES - 0.3%
Benpres Holdings Corp. (a) 9,600,000 1,348,674
SINGAPORE - 9.8%
Chartered Semiconductor 1,900 166,013
Manufacturing Ltd. ADR
Datacraft Asia Ltd. 1,360,000 10,200,000
DBS Group Holdings Ltd. 209,605 2,886,444
Gul Technologies Singapore 2,200,000 1,779,080
Ltd.
JIT Holdings Ltd. 970,000 2,285,028
Natsteel Electronics Ltd. 1,517,000 8,711,749
OMNI Industries Ltd. 100,000 195,722
Singapore Press Holdings Ltd. 270,076 5,285,988
Singapore Technologies 1,106,175 1,555,711
Engineering Ltd.
United Overseas Bank Ltd. 280,000 1,952,534
Venture Manufacturing 763,000 8,942,280
Singapore Ltd.
43,960,549
TAIWAN - 18.6%
Advanced Semiconductor 442,000 1,415,787
Engineering, Inc. (a)
ASE Test Ltd. (a) 60,000 1,777,500
Asustek Computer, Inc. 1,333,759 14,778,372
Compal Electronics, Inc. 1,129 2,897
Compeq Manufacturing Co. Ltd. 23,400 129,256
(a)
D-Link Corp. 137,000 403,007
Dimerco Data System Corp. 121,000 502,272
Episil Technologies, Inc. (a) 1,885,000 4,867,299
Far Eastern Textile Ltd. 856,430 1,315,647
GigaMedia Ltd. 3,000 72,000
Hon Hai Precision Industries 1,075,880 10,373,741
Co. Ltd. (a)
Stark Technology, Inc. 53,000 685,994
Taiwan Semiconductor 4,521,677 29,114,900
Manufacturing Co. Ltd. (a)
United Microelectronics Corp. 5,449,950 18,436,667
83,875,339
THAILAND - 1.4%
Advanced Info Service PCL 148,000 1,733,176
(For. Reg.) (a)
BEC World PCL (For.Reg.) 120,000 794,013
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
THAILAND - CONTINUED
Jasmine International PCL (a) 356,000 $ 191,624
Shin Corporations PCL (For. 260,000 1,515,557
Reg.) (a)
Shin Satellite PCL (a) 875,000 694,991
Siam Cement PCL (For. Reg.) 50,000 1,155,311
(a)
6,084,672
UNITED KINGDOM - 3.1%
HSBC Holdings PLC (Hong Kong) 1,225,550 14,017,228
(Reg.)
TOTAL COMMON STOCKS 415,278,411
(Cost $250,889,737)
CONVERTIBLE PREFERRED STOCKS
- 0.2%
THAILAND - 0.2%
Siam Commercial Bank PLC 1,166,600 934,260
5.25% (Cost $824,305)
CASH EQUIVALENTS - 7.4%
Central Cash Collateral Fund, 6,286,115 6,286,115
5.94% (b)
Taxable Central Cash Fund, 27,302,121 27,302,121
5.77% (b)
TOTAL CASH EQUIVALENTS 33,588,236
(Cost $33,588,236)
TOTAL INVESTMENT PORTFOLIO - 449,800,907
99.7%
(Cost $285,302,278)
NET OTHER ASSETS - 0.3% 1,227,887
NET ASSETS - 100% $ 451,028,794
LEGEND
(a) Non-income producing
(b) The rate quoted is the annualized seven-day yield of the fund at
period end.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $163,727,247 and $191,468,039.
The fund participated in the security lending program. At period end,
the value of securities loaned amounted to $10,263,434. The fund
received
cash collateral of $6,286,115 which was invested in cash equivalents
and U.S. Treasury Obligations valued at $4,226,550.
INCOME TAX INFORMATION
At April 30, 2000, the aggregate cost of investment securities for
income
tax purposes was $285,653,263. Net unrealized appreciation aggregated
$164,147,644, of which $178,656,699 related to appreciated investment
securities and $14,509,055 related to depreciated investment
securities.
At October 31, 1999, the fund had a capital loss carryforward of
approximately $143,548,000 of which $32,651,000, $110,573,000 and
$324,000 will expire on October 31, 2005, 2006 and 2007, respectively.
SOUTHEAST ASIA
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000 (UNAUDITED)
ASSETS
Investment in securities, at $ 449,800,907
value (cost $285,302,278) -
See accompanying schedule
Foreign currency held at 5,371,594
value (cost $5,371,829)
Receivable for investments 4,708,980
sold
Receivable for fund shares 236,516
sold
Dividends receivable 508,022
Interest receivable 85,039
Redemption fees receivable 4,223
Other receivables 1,374,547
TOTAL ASSETS 462,089,828
LIABILITIES
Payable to custodian bank $ 3,567
Payable for investments 594,763
purchased
Payable for fund shares 1,004,432
redeemed
Accrued management fee 347,697
Other payables and accrued 2,824,460
expenses
Collateral on securities 6,286,115
loaned, at value
TOTAL LIABILITIES 11,061,034
NET ASSETS $ 451,028,794
Net Assets consist of:
Paid in capital $ 404,316,908
Distributions in excess of (902,314)
net investment income
Accumulated undistributed net (115,448,985)
realized gain (loss) on
investments and foreign
currency transactions
Net unrealized appreciation 163,063,185
(depreciation) on
investments and assets and
liabilities in foreign
currencies
NET ASSETS, for 29,652,233 $ 451,028,794
shares outstanding
NET ASSET VALUE and $15.21
redemption price per share
($451,028,794 (divided by)
29,652,233 shares)
Maximum offering price per $15.68
share (100/97.00 of $15.21)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30,
2000 (UNAUDITED)
INVESTMENT INCOME $ 2,211,833
Dividends
Interest 368,575
Security lending 59,287
2,639,695
Less foreign taxes withheld (246,801)
TOTAL INCOME 2,392,894
EXPENSES
Management fee
Basic fee $ 1,765,124
Performance adjustment 348,353
Transfer agent fees 618,383
Accounting and security 142,445
lending fees
Non-interested trustees' 1,229
compensation
Custodian fees and expenses 334,934
Registration fees 41,640
Audit 26,977
Legal 9,703
Miscellaneous 259
Total expenses before 3,289,047
reductions
Expense reductions (23,650) 3,265,397
NET INVESTMENT INCOME (LOSS) (872,503)
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities 29,126,882
Foreign currency transactions (84,387) 29,042,495
Change in net unrealized
appreciation (depreciation)
on:
Investment securities 64,163,256
Assets and liabilities in (1,473,433) 62,689,823
foreign currencies
NET GAIN (LOSS) 91,732,318
NET INCREASE (DECREASE) IN $ 90,859,815
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION Sales $ 413,201
charges paid to FDC
Sales charges - Retained by $ 413,201
FDC
Expense Reductions $ 20,840
Directed brokerage
arrangements
Custodian credits 527
Transfer agent credits 2,283
$ 23,650
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
INCREASE (DECREASE) IN NET SIX MONTHS ENDED APRIL 30, YEAR ENDED OCTOBER 31, 1999
ASSETS 2000 (UNAUDITED)
Operations Net investment $ (872,503) $ 843,163
income (loss)
Net realized gain (loss) 29,042,495 534,330
Change in net unrealized 62,689,823 103,803,682
appreciation (depreciation)
NET INCREASE (DECREASE) IN 90,859,815 105,181,175
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (596,056) (562,063)
from net investment income
Share transactions Net 160,809,458 212,535,353
proceeds from sales of shares
Reinvestment of distributions 573,854 540,135
Cost of shares redeemed (162,027,196) (181,366,771)
NET INCREASE (DECREASE) IN (643,884) 31,708,717
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
Redemption fees 727,035 1,014,716
TOTAL INCREASE (DECREASE) 90,346,910 137,342,545
IN NET ASSETS
NET ASSETS
Beginning of period 360,681,884 223,339,339
End of period (including $ 451,028,794 $ 360,681,884
under (over) distribution of
net investment income of
$(902,314) and $566,245,
respectively)
OTHER INFORMATION
Shares
Sold 9,976,529 19,445,097
Issued in reinvestment of 39,604 63,997
distributions
Redeemed (10,051,678) (17,300,454)
Net increase (decrease) (35,545) 2,208,640
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SIX MONTHS ENDED APRIL 30, 2000 YEARS ENDED OCTOBER 31,
SELECTED PER-SHARE DATA (UNAUDITED) 1999 1998 1997 1996
Net asset value, beginning of $ 12.15 $ 8.13 $ 9.55 $ 14.69 $ 13.88
period
Income from Investment
Operations
Net investment income (loss) (.03) D .03 D .09 D .04 D, E .14 D
Net realized and unrealized 3.09 3.97 (1.48) (4.62) .87
gain (loss)
Total from investment 3.06 4.00 (1.39) (4.58) 1.01
operations
Less Distributions
From net investment income (.02) (.02) (.05) (.10) (.23)
In excess of net investment - - - (.07) -
income
From net realized gain - - - (.40) -
Total distributions (.02) (.02) (.05) (.57) (.23)
Redemption fees added to paid .02 .04 .02 .01 .03
in capital
Net asset value, end of period $ 15.21 $ 12.15 $ 8.13 $ 9.55 $ 14.69
TOTAL RETURN B, C 25.36% 49.80% (14.44)% (32.48)% 7.59%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 451,029 $ 360,682 $ 223,339 $ 278,847 $ 755,346
(000 omitted)
Ratio of expenses to average 1.37% A 1.46% 1.83% 1.32% 1.13%
net assets
Ratio of expenses to average 1.36% A, F 1.43% F 1.79% F 1.32% 1.12% F
net assets after expense
reductions
Ratio of net investment (.36)% A .28% 1.07% .22% .95%
income (loss) to average net
assets
Portfolio turnover rate 73% A 93% 95% 141% 102%
A ANNUALIZED
B THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
D NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
E INVESTMENT INCOME PER SHARE
REFLECTS A SPECIAL DIVIDEND
WHICH AMOUNTED TO $.02 PER
SHARE.
F FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA 1995
Net asset value, beginning of $ 14.61
period
Income from Investment
Operations
Net investment income (loss) .15
Net realized and unrealized (.91)
gain (loss)
Total from investment (.76)
operations
Less Distributions
From net investment income -
In excess of net investment -
income
From net realized gain -
Total distributions -
Redemption fees added to paid .03
in capital
Net asset value, end of period $ 13.88
TOTAL RETURN B, C (5.00)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 649,868
(000 omitted)
Ratio of expenses to average 1.10%
net assets
Ratio of expenses to average 1.10%
net assets after expense
reductions
Ratio of net investment .90%
income (loss) to average net
assets
Portfolio turnover rate 94%
A ANNUALIZED
B THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
D NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
E INVESTMENT INCOME PER SHARE
REFLECTS A SPECIAL DIVIDEND
WHICH AMOUNTED TO $.02 PER
SHARE.
F FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
For the period ended April 30, 2000 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES.
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, Fidelity Latin America Fund, Fidelity Nordic Fund, Fidelity
Pacific Basin Fund, and Fidelity Southeast Asia Fund (the funds) are
funds of Fidelity Investment Trust (the trust). The trust is
registered under the Investment Company Act of 1940, as amended (the
1940 Act), as an open-end management investment company organized as a
Massachusetts business trust. Each fund is authorized to issue an
unlimited number of shares. The funds' investments in emerging markets
can be subject to social, economic, regulatory, and political
uncertainties and can be extremely volatile. The financial statements
have been prepared in conformity with generally accepted accounting
principles which require management to make certain estimates and
assumptions at the date of the financial statements. The following
summarizes the significant accounting policies of the funds:
SECURITY VALUATION. Securities for which quotations are readily
available are valued using the official closing price or at the last
sale price in the principal market in which they are traded. If the
last sale price (on the local exchange) is unavailable, the last
evaluated quote or closing bid price normally is used. If trading or
events occurring in other markets after the close of the principal
market in which securities are traded are expected to materially
affect the value of those securities, then they are valued at their
fair value taking this trading or these events into account. Fair
value is determined in good faith under consistently applied
procedures under the general supervision of the Board of Trustees.
Securities (including restricted securities) for which quotations are
not readily available are valued primarily using dealer-supplied
valuations or at their fair value. Short-term securities with
remaining maturities of sixty days or less for which quotations are
not readily available are valued at amortized cost or original cost
plus accrued interest, both of which approximate current value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the funds are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Purchases
and sales of securities, income receipts and expense payments are
translated into U.S. dollars at the prevailing exchange rate on the
respective dates of the transactions.
Net realized gains and losses on foreign currency transactions
represent net gains and losses from sales and maturities of foreign
currency contracts, disposition of foreign currencies, the difference
between the amount of net investment income accrued and the U.S.
dollar amount actually received, and gains and losses between trade
and settlement date on purchases and sales of securities. The effects
of changes in foreign currency exchange rates on investments in
securities are included with the net realized and unrealized gain or
loss on investment securities.
INCOME TAXES. As a qualified regulated investment company under
Subchapter M of the Internal Revenue Code, each fund is not subject to
U.S. federal income taxes to the extent that it distributes
substantially all of its taxable income for its fiscal year. Each fund
may be subject to foreign taxes on income and gains on investments
which are accrued based upon each fund's understanding of the tax
rules and regulations that exist in the markets in which they invest.
Foreign governments may also impose taxes on other payments or
transactions with respect to foreign securities. Each fund accrues
such taxes as applicable. The schedules of investments include
information regarding income taxes under the caption "Income Tax
Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend
date, except certain dividends from foreign securities where the
ex-dividend date may have passed, are recorded as soon as the funds
are informed of the ex-dividend date. Non-cash dividends included in
dividend income, if any, are recorded at the fair market value of the
securities received. Interest income is accrued as earned. Investment
income is recorded net of foreign taxes withheld where recovery of
such taxes is uncertain.
EXPENSES. Most expenses of the trust can be directly attributed to a
fund. Expenses which cannot be directly attributed are apportioned
among the funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date.
Income and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles. These differences, which may result in
distribution reclassifications, are primarily due to differing
treatments for futures transactions, foreign currency transactions,
passive foreign investment companies (PFIC), market discount, net
operating losses, capital loss carryforwards, and losses deferred due
to wash sales. Certain funds also utilized earnings and profits
distributed to shareholders on redemption of shares as a part of the
dividends paid deduction for income tax purposes.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital.
Undistributed net investment income, distributions in excess of net
investment income, accumulated net investment loss and accumulated
undistributed net realized gain (loss) on investments and foreign
currency transactions may include temporary book and tax basis
differences which will reverse in a subsequent period. Any taxable
income or gain remaining at fiscal year end is distributed in the
following year.
SHORT-TERM TRADING (REDEMPTION) FEES. Shares held in Canada, Emerging
Markets, Hong Kong and China, Japan, Japan Smaller Companies, Latin
America, Nordic, Pacific Basin, and Southeast Asia less than 90 days
are subject to a short-term trading fee equal to 1.50% of the proceeds
of the redeemed shares (1.00% for shares redeemed prior to May 31,
2000 for Pacific Basin). Shares held in Europe and Europe Capital
Appreciation less than 30 days are subject to a short-term trading fee
equal to 1.00% of the proceeds of the redeemed shares. These fees,
which are retained by the funds, are accounted for as an addition to
paid in capital.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
SECURITY TRANSACTIONS. Security transactions are accounted for as of
trade date. Gains and losses on securities sold are determined on the
basis of identified cost.
2. OPERATING POLICIES.
FOREIGN CURRENCY CONTRACTS. Certain funds use foreign currency
contracts to facilitate transactions in foreign-denominated
securities. Losses may arise from changes in the value of the foreign
currency or if the counterparties do not perform under the contracts'
terms. The U.S. dollar value of foreign currency contracts is
determined using contractual currency exchange rates established at
the time of each trade.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission (the SEC) the funds, along with
other affiliated entities of Fidelity Management & Research Company
(FMR), may transfer uninvested cash balances into one or more joint
trading accounts. These balances are invested in one or more
repurchase agreements for U.S. Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury, Federal Agency,
or other obligations found to be satisfactory by FMR are transferred
to an account of the funds, or to the Joint Trading Account, at a bank
custodian. The securities are marked-to-market daily and maintained at
a value at least equal to the principal amount of the repurchase
agreement (including accrued interest). FMR, the funds' investment
adviser, is responsible for determining that the value of the
underlying securities remains in accordance with the market value
requirements stated above.
CENTRAL CASH FUNDS. Pursuant to an Exemptive Order issued by the SEC,
the funds may invest in the Taxable Central Cash Fund and the Central
Cash Collateral Fund (the Cash Funds) managed by Fidelity Investments
Money Management, Inc., an affiliate of FMR. The Cash Funds are
open-end money market funds available only to investment companies and
other accounts managed by FMR and its affiliates. The Cash Funds seek
preservation of capital, liquidity, and current income. Income
distributions from the Cash Funds are declared daily and paid monthly
from net interest income. Income distributions earned by the funds are
recorded as either interest income or security lending income in the
accompanying financial statements.
INTERFUND LENDING PROGRAM. Pursuant to an Exemptive Order issued by
the SEC, the funds, along with other registered investment companies
having management contracts with FMR, may participate in an interfund
lending program. This program provides an alternative credit facility
allowing the funds to borrow from, or lend money to, other
participating funds. Information
regarding each fund's participation in the program is included under
the caption "Other Information" at the end of each applicable fund's
schedule of investments.
WHEN-ISSUED SECURITIES. Each fund may purchase or sell securities on a
when-issued basis. Payment and delivery may take place after the
customary settlement period for that security. The price of the
underlying securities is fixed at the time the transaction is
negotiated. The market values of the securities purchased on a
when-issued or forward commitment basis are identified as such in each
applicable fund's schedule of investments. Each fund may receive
compensation for interest forgone in the purchase of a when-issued
security. With respect to purchase commitments, each fund identifies
securities as segregated in its custodial records with a value at
least equal to the amount of the commitment. Losses may arise due to
changes in the market value of the underlying securities, if the
counterparty does not perform under the contract, or if the issuer
does not issue the securities due to political, economic, or other
factors.
RESTRICTED SECURITIES. Certain funds are permitted to invest in
securities that are subject to legal or contractual restrictions on
resale. These securities generally may be resold in transactions
exempt from registration or to the public if the securities are
registered. Disposal of these securities may involve time-consuming
negotiations and expense, and prompt sale at an acceptable price may
be difficult. Information regarding restricted securities is included
under the caption "Other Information" at the end of each applicable
fund's schedule of investments.
3. PURCHASES AND SALES OF INVESTMENTS.
Information regarding purchases and sales of securities (other than
short-term securities), is included under the caption "Other
Information" at the end of each applicable fund's schedule of
investments.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As each fund's investment adviser, FMR receives a
monthly basic fee that is calculated on the basis of a group fee rate
plus a fixed individual fund fee rate applied to the average net
assets of each fund. The group fee rate is the weighted average of a
series of rates and is based on the monthly average net assets of all
the mutual funds advised by FMR. The rates ranged from .2167% to
.5200% for the period. The annual individual fund fee rate is .45%. In
the event that these rates were lower than the contractual rates in
effect during the period, FMR voluntarily implemented the above rates,
as they resulted in the same or a lower management fee. The basic fee
for Canada, Europe, Europe Capital Appreciation, Japan, Pacific Basin,
and Southeast Asia is subject to a performance adjustment (up to a
maximum of (plus/minus).20% of the fund's average net assets over the
performance period) based on each fund's investment performance as
compared to the
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
MANAGEMENT FEE - CONTINUED
appropriate index over a specified period of time. For the period,
each fund's management fees were equivalent to the following
annualized rates expressed as a percentage of average net assets after
the performance adjustment, if applicable:
Canada .49%
Emerging Markets .73%
Europe .70%
Europe Capital Appreciation .78%
Hong Kong and China .73%
Japan .82%
Japan Smaller Companies .72%
Latin America .73%
Nordic .73%
Pacific Basin .82%
Southeast Asia .88%
SUB-ADVISER FEE. FMR, on behalf of the funds, entered into
sub-advisory agreements with Fidelity Management & Research (U.K.)
Inc., Fidelity Management & Research (Far East) Inc., Fidelity
International Investment Advisors (FIIA), and Fidelity Investments
Japan Limited (FIJ) (Emerging Markets, Hong Kong and China, Japan,
Japan Smaller Companies, Pacific Basin, and Southeast Asia funds
only.). In addition, FIIA entered into a sub-advisory agreement with
its subsidiary, Fidelity International Investment Advisors (U.K.)
Limited (FIIA(U.K.)L). Under the sub-advisory arrangements, FMR may
receive investment advice and research services and may grant the
sub-advisers investment management authority to buy and sell
securities. FMR pays its sub-advisers either a portion of its
management fee or a fee based on costs incurred for these services.
FIIA pays FIIA(U.K.)L a fee based on costs incurred for either
service.
SALES LOAD. Fidelity Distributors Corporation (FDC), an affiliate of
FMR, is the general distributor of the fund. FDC receives a sales
charge of up to 3% for selling shares of each fund. Shares of Canada,
Europe, and Pacific Basin purchased prior to October 12, 1990, are
subject to a 1% deferred sales charge upon redemption. Effective March
1, 2000, Europe's and Europe Capital Appreciation's 3% sales charge
was eliminated. The amounts received and retained by FDC for sales
charges and deferred sales charges are shown under the caption "Other
Information" on each fund's Statement of Operations.
TRANSFER AGENT FEES. Fidelity Service Company, Inc. (FSC), an
affiliate of FMR, is the funds' transfer, dividend disbursing and
shareholder servicing agent. FSC receives account fees and asset-based
fees that vary according to account size and type of account. FSC pays
for typesetting, printing and mailing of all shareholder reports,
except proxy statements. For the period, the transfer agent fees were
equivalent to the following annualized rates as a percentage of the
average net assets:
Canada .31%
Emerging Markets .34%
Europe .24%
Europe Capital Appreciation .23%
Hong Kong and China .28%
Japan .21%
Japan Smaller Companies .19%
Latin America .30%
Nordic .24%
Pacific Basin .25%
Southeast Asia .26%
ACCOUNTING AND SECURITY LENDING FEES. FSC maintains each fund's
accounting records and administers the security lending program. The
security lending fee is based on the number and duration of lending
transactions. The accounting fee is based on the level of average net
assets for the month plus out-of-pocket expenses.
BROKERAGE COMMISSIONS. Certain funds placed a portion of their
portfolio transactions with brokerage firms which are affiliates of
FMR. The commissions paid to these affiliated firms are shown under
the caption "Other Information" at the end of each applicable fund's
schedule of investments.
5. SECURITY LENDING.
Certain funds lend portfolio securities from time to time in order to
earn additional income. Each applicable fund receives collateral (in
the form of U.S. Treasury obligations, letters of credit and/or cash)
against the loaned securities and maintains collateral in an amount
not less than 100% of the market value of the loaned securities during
the period of the loan. The market value of the loaned securities is
determined at the close of business of the funds and any additional
required collateral is delivered to the funds on the next business
day. If the borrower defaults on its obligation to return the
securities loaned because of insolvency or other reasons, a fund could
experience delays and costs in recovering the securities loaned or in
gaining access to the collateral. Information regarding the value of
securities loaned and the value of collateral at period end is
included under the caption "Other Information" at the end of each
applicable fund's schedule of investments.
6. BANK BORROWINGS.
Each fund is permitted to have bank borrowings for temporary or
emergency purposes to fund shareholder redemptions. Each fund has
established borrowing arrangements with certain banks. The interest
rate on the borrowings is the bank's base rate, as revised from time
to time. Information regarding a fund's participation in the program
is included under the caption "Other Information" at the end of each
applicable fund's schedule of investments.
7. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse certain fund's operating expenses
(excluding interest, taxes, certain securities lending fees, brokerage
commissions and extraordinary expenses, if any) above an annual rate
of 2.00% of average net assets of each of the applicable funds.
FMR has directed certain portfolio trades to brokers who paid a
portion of certain funds' expenses.
In addition, through arrangements with certain fund's custodian and
transfer agent credits realized as a result of uninvested cash
balances were used to reduce a portion of certain funds' expenses.
For the period, the reductions under these arrangements are shown
under the caption "Other Information" on each applicable fund's
Statement of Operations.
8. BENEFICIAL INTEREST.
At the end of the period, FMR and its affiliates were record owners of
more than 5% of the outstanding shares of the following funds:
FUND % OWNERSHIP
Japan Smaller Companies 11%
9. TRANSACTIONS WITH AFFILIATED COMPANIES.
An affiliated company is a company which the fund has ownership of at
least 5% of the voting securities. Information regarding transactions
with affiliated companies is included in "Other Information" at the
end of each applicable fund's schedule of investments.
10. LITIGATION.
The Fidelity Latin America Fund is engaged in litigation against the
obligor on the inflation adjusted debt of Siderurgica Brasileiras SA,
contesting the calculation of the principal adjustment. The
probability of success of this litigation cannot be predicted and the
amount of recovery cannot be estimated. Any recovery from this
litigation would inure to the benefit of the fund. As of period end,
the fund no longer holds Siderurgica Brasileiras SA debt securities.
11. PROPOSED REORGANIZATIONS.
The Boards of Trustees of Fidelity France Fund, Fidelity Germany Fund
and Fidelity United Kingdom Fund ("Target Funds") have each approved
Agreements and Plans of Reorganization ("Agreements") with Fidelity
Europe Fund ("Reorganizations"). The Agreements provide for the
transfer of all of the assets and the assumption of all of the
liabilities of each Target Fund in exchange solely for the number of
shares of Fidelity Europe Fund having the same aggregate net asset
value as the outstanding shares of each Target Fund as of the close of
business of the New York Stock Exchange on the day that the
Reorganizations are effective. A Reorganization can be consummated
only if, among other things, it is approved by the vote of a majority
(as defined by the 1940 Act) of outstanding voting securities of the
Target Fund to which the Reorganization relates. It will not be
necessary for all three reorganizations to be approved for any one of
them to take place. A Special Meeting of Shareholders ("Meeting") of
the Target Funds will be held on July 19, 2000 to vote on the
Agreements. A detailed description of the proposed transactions and
voting information was sent to the shareholders of the Target Funds in
May, 2000. If the Agreements are approved at the Meeting, the
Reorganizations are expected to become effective on or about July 24,
2000 (Fidelity United Kingdom Fund), July 26, 2000 (Fidelity Germany
Fund), and July 28, 2000 (Fidelity France Fund).
PROXY VOTING RESULTS
A special meeting of certain funds' shareholders was held on December
15, 1999. The results of votes taken among shareholders on proposals
before them are reported below. Each vote reported represents one
dollar of net asset value held on the record date for the meeting.
PROPOSAL HONG KONG AND CHINA
To amend the fund's fundamental industry concentration limitation to
permit the fund to invest up to 35% of its total assets in certain
industries.
# OF % OF
SHARES VOTED SHARES VOTED
Affirmative 64,799,241.34 85.562
Against 2,994,946.61 3.954
Abstain 7,939,854.28 10.484
TOTAL 75,734,042.23 100.00
PROPOSAL LATIN AMERICA
To amend the fund's fundamental industry concentration limitation to
permit the fund to invest up to 35% of its total assets in certain
industries.
# OF % OF
SHARES VOTED SHARES VOTED
Affirmative 112,119,957.88 79.946
Against 7,244,029.56 5.165
Abstain 20,880,862.64 14.889
TOTAL 140,244,850.08 100.00
PROPOSAL NORDIC
To amend the fund's fundamental industry concentration limitation to
permit the fund to invest up to 35% of its total assets in certain
industries.
# OF % OF
SHARES VOTED SHARES VOTED
Affirmative 42,509,799.42 84.498
Against 2,153,453.80 4.281
Abstain 5,645,172.94 11.221
TOTAL 50,308,426.16 100.00
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
INVESTMENT SUB-ADVISERS
Fidelity Management & Research (U.K.) Inc.
Fidelity Management & Research (Far East) Inc.
Fidelity Investments Japan Limited
Fidelity International Investment Advisors
Fidelity International Investment Advisors
(U.K.) Limited
OFFICERS
Edward C. Johnson 3d, PRESIDENT
Robert C. Pozen, SENIOR VICE PRESIDENT
Richard A. Spillane, Jr., VICE PRESIDENT
Allan Liu, VICE PRESIDENT, SOUTHEAST ASIA FUND
Brenda A. Reed, VICE PRESIDENT, JAPAN FUND
Patricia Satterthwaite, VICE PRESIDENT, LATIN AMERICA FUND
AND EMERGING MARKETS FUND
Eric D. Roiter, SECRETARY
Robert A. Dwight, TREASURER
Matthew N. Karstetter, DEPUTY TREASURER
Maria F. Dwyer, DEPUTY TREASURER
John H. Costello, ASSISTANT TREASURER
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
Donald J. Kirk *
Ned C. Lautenbach *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Michael Cook
Abigail P. Johnson
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER SERVICING AGENT
Fidelity Service Company, Inc.
Boston, MA
* INDEPENDENT TRUSTEES
CUSTODIANS
The Chase Manhattan Bank
New York, NY
EMERGING MARKETS FUND, EUROPE FUND, EUROPE CAPITAL APPRECIATION FUND,
JAPAN FUND, PACIFIC BASIN FUND, SOUTHEAST ASIA FUND
Brown Brothers Harriman & Co.
Boston, MA
CANADA FUND, HONG KONG AND CHINA FUND, JAPAN SMALLER COMPANIES FUND,
LATIN AMERICA FUND, NORDIC FUND
FIDELITY'S INTERNATIONAL EQUITY FUNDS
Aggressive International Fund
Canada Fund
Diversified International Fund
Emerging Markets Fund
Europe Fund
Europe Capital Appreciation Fund
France Fund
Germany Fund
Global Balanced Fund
Hong Kong and China Fund
International Growth & Income Fund
Japan Fund
Japan Smaller Companies Fund
Latin America Fund
Nordic Fund
Overseas Fund
Pacific Basin Fund
Southeast Asia Fund
United Kingdom Fund
Worldwide Fund
CORPORATE HEADQUARTERS
82 Devonshire Street
Boston, MA 02109
www.fidelity.com
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST(registered trademark)) 1-800-544-5555
AUTOMATED LINE FOR QUICKEST SERVICE
(registered trademark)
BULK RATE
U.S. Postage
PAID
Fidelity
Investments
P.O. Box 193
Boston, MA 02101
