(2_FIDELITY_LOGOS)FIDELITY
FOREIGN CURRENCY
FUNDS
ANNUAL REPORT
DECEMBER 31, 1995
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.
PERFORMANCE 4 How the funds have done over time.
FUND TALK 10 The manager's review of fund
performance, strategy and outlook.
FINANCIAL STATEMENTS 12 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.
NOTES 24 Notes to the financial statements.
REPORT OF INDEPENDENT 27 The auditors' opinion.
ACCOUNTANTS
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUND 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 FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL
1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST
OR SEND MONEY.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
Although the markets were fairly positive in 1995, no one can predict what
lies ahead for investors. The previous year, stocks posted below-average
returns and bonds had one of the worst years in history. This downturn
followed a period in which the investing environment was generally very
positive.
These market ups and downs are a normal part of investing, and there are
some basic principles that are helpful for investors to remember in
different types of markets.
If you can leave your money invested over the long term, you can avoid the
results of the volatility that generally accompanies the stock market in
the short term, as we witnessed last year. You also can help to manage some
of the risks of investing through diversification. A stock fund is already
diversified because it invests in many issues. You can diversify even
further by placing some of your money in several different types of stock
funds or in other investment categories, such as bonds.
If you have a short investment time horizon, you might want to consider
moving some of your investment into a money market fund, which seeks income
and a stable share price by investing in high-quality, short-term
investments. Of course, there is no assurance that a money market fund will
achieve its goal, and it is important to remember that money market funds
are not insured or guaranteed by any agency of the U.S. government.
Finally, no matter what your investment horizon or portfolio diversity, it
makes good sense to follow a regular investment plan - investing a certain
amount of money at the same time each month or quarter - and to review your
portfolio periodically. A periodic investment plan will not, of course,
assure a profit or protect against a loss.
If you have any questions, please call us at 1-800-544-8888. We stand ready
to provide the information you need to make the investments that are right
for you.
Best regards,
Edward C. Johnson 3d
FIDELITY DEUTSCHE MARK PERFORMANCE PORTFOLIO, L.P.
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. A fund's total
return includes changes in a fund's share price. If Fidelity had not
reimbursed certain expenses during the periods shown, the fund's returns
would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Deutsche Mark Performance Portfolio, L.P. 10.96% 36.55% 81.20%
Deutsche Mark Performance Portfolio, L.P. 10.52% 36.00% 80.48%
(incl. maximum 0.4% sales charge)
German Deutsche Mark 7.75% 3.71% 27.88%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one year, five years or since the fund
started on November 16, 1989. 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
German Deutsche mark, whose returns reflect a hypothetical unmanaged
investment in the currency itself. The exchange rates used in calculating
these returns are based on the mean between the best available bid and
asked quotations at 4 p.m. Eastern time from a pool of 500 banking
institutions which actively trade in this currency.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Deutsche Mark Performance Portfolio, L.P. 10.96% 6.43% 10.18%
Deutsche Mark Performance Portfolio, L.P. 10.52% 6.34% 10.11%
(incl. maximum 0.4% sales charge)
German Deutsche Mark 7.75% .73% 4.09%
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
Deutsche Deutsche Mark
11/16/89 9960 10000
11/30/89 10308.6 10322.2003929
12/31/89 10896.24 10877.8467909
01/31/90 10995.84 10913.3531157
02/28/90 10916.16 10772.7006444
03/31/90 11075.52 10855.3719008
04/30/90 11234.88 10949.0919917
05/31/90 11175.12 10839.3751842
06/30/90 11483.88 11073.0414885
07/31/90 12081.48 11587.2715816
08/31/90 12230.88 11668.1472081
09/30/90 12370.32 11735.1627313
10/31/90 12848.4 12111.5721531
11/30/90 13097.4 12279.7996661
12/31/90 13216.92 12330.8522765
01/31/91 13446 12452.7663032
02/28/91 13107.36 12058.3606557
03/31/91 11802.6 10798.0035232
04/30/91 11872.32 10775.8570173
05/31/91 11683.08 10550.2008032
06/30/91 11314.56 10154.0585312
07/31/91 11832.48 10544.1513761
08/31/91 11882.28 10526.044648
09/30/91 12539.64 11045.1078143
10/31/91 12569.52 11000.179458
11/30/91 12987.84 11311.4350741
12/31/91 13993.8 12125.9479064
01/31/92 13266.72 11414.6492862
02/29/92 13117.32 11219.6461257
03/31/92 13187.04 11192.3311016
04/30/92 13236.84 11158.3737864
05/31/92 13645.2 11439.5023328
06/30/92 14521.68 12083.7166513
07/31/92 15079.44 12471.3462191
08/31/92 15955.92 13111.5864528
09/30/92 16025.64 12991.1691982
10/31/92 14730.84 11920.7830935
11/30/92 14342.4 11558.1395349
12/31/92 14143.2 11347.7321814
01/31/93 14302.56 11413.2323734
02/28/93 14083.44 11178.7234043
03/31/93 14501.76 11445.1982324
04/30/93 14790.6 11601.8927445
05/31/93 14830.44 11583.6220472
06/30/93 13884.24 10785.3372434
07/31/93 13675.08 10559.2879701
08/31/93 14262.72 10969.3390599
09/30/93 14691 11265.0085763
10/31/93 14292.6 10907.5271368
11/30/93 14103.36 10721.8238004
12/31/93 13973.88 10579.3349442
01/31/94 14053.56 10603.1251802
02/28/94 14362.32 10790.4001878
03/31/94 14681.04 10991.6317992
04/30/94 14900.16 11117.8960097
05/31/94 15009.72 11168.5393258
06/30/94 15617.28 11583.6220472
07/31/94 15696.96 11616.5508528
08/31/94 15756.72 11627.5687638
09/30/94 16105.32 11852.4009024
10/31/94 16653.12 12228.3548344
11/30/94 16015.68 11717.9634232
12/31/94 16264.68 11867.6992578
01/31/95 16573.44 11991.5226606
02/28/95 17300.52 12566.8010661
03/31/95 18475.8 13373.8181818
04/30/95 18376.2 13259.0669839
05/31/95 18047.52 12998.5155863
06/30/95 18515.64 13310.8939558
07/31/95 18505.68 13265.7625162
08/31/95 17529.6 12526.5667575
09/30/95 18077.4 12879.2547976
10/31/95 18356.28 13053.8794633
11/30/95 17908.08 12712.7549257
12/29/95 18047.52 12787.8998609
$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity
Deutsche Mark Performance Portfolio, L.P. on November 16, 1989, when the
fund started, and paid the maximum 0.4% sales charge. As the chart shows,
by December 31, 1995, the value of your investment would have grown to
$18,048 - an 80.48% increase on your initial investment. For comparison,
look at how the German deutsche mark did over the same period. The same
$10,000 investment would have grown to $12,788 - a 27.88% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. The value of
foreign currencies compared
to the value of the U.S. dollar
changes daily. Changes in
interest rates and political
events can both affect a
currency's value compared to
the dollar. In turn, the share
price and return of a fund that
invests in foreign currencies
will vary. That means if you
sell your shares during a
downturn, you might lose
money. But if you can ride out
short-term ups and downs, you
may have a gain.
(checkmark)
FIDELITY STERLING PERFORMANCE PORTFOLIO, L.P.
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. A fund's total
return includes changes in a fund's share price. If Fidelity had not
reimbursed certain expenses during the periods shown, the fund's returns
would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Sterling Performance Portfolio, L.P. 3.92% 9.08% 53.70%
Sterling Performance Portfolio, L.P. 3.51% 8.65% 53.09%
(incl. maximum 0.4% sales charge)
British Pound Sterling -0.99% -19.79% -1.83%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one year, five years or since the fund
started on November 16, 1989. 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
British Pound Sterling, whose returns reflect a hypothetical unmanaged
investment in the currency itself. The exchange rates used in calculating
these returns are based on the mean between the best available bid and
asked quotations at 4 p.m. Eastern time from a pool of 500 banking
institutions which actively trade in this currency.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Sterling Performance Portfolio, L.P. 3.92% 1.75% 7.26%
Sterling Performance Portfolio, L.P. 3.51% 1.67% 7.19%
(incl. maximum 0.4% sales charge)
British Pound Sterling -0.99% -4.31% -0.30%
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
Sterling (49British P
11/16/89 10000 10000
11/30/89 9970 9938.766
12/31/89 10320 10201.45
01/31/90 10850 10627.94
02/28/90 10940 10611.9
03/31/90 10870 10416.32
04/30/90 10950 10377.05
05/31/90 11330 10624.37
06/30/90 11930 11070.3
07/31/90 12850 11796.5
08/31/90 13140 11965.97
09/30/90 13210 11876.17
10/31/90 13860 12298.43
11/30/90 14020 12305.6
12/31/90 14090 12238.98
01/31/91 14450 12448.38
02/28/91 14200 12103.25
03/31/91 13060 11018.28
04/30/91 13130 10961.04
05/31/91 12970 10741.56
06/30/91 12470 10264.31
07/31/91 13070 10669.14
08/31/91 13130 10640.44
09/30/91 13770 11076.12
10/31/91 13790 11010.61
11/30/91 14090 11191.65
12/31/91 14970 11820.73
01/31/92 14450 11311.65
02/29/92 14310 11128.69
03/31/92 14220 10985.77
04/30/92 14680 11255.33
05/31/92 15190 11572.21
06/30/92 15940 12064.04
07/31/92 16210 12198.88
08/31/92 16820 12584.49
09/30/92 15420 11307.61
10/31/92 13480 9855.208
11/30/92 13200 9599.636
12/31/92 13160 9561.934
01/31/93 13080 9409.841
02/28/93 12550 9017.094
03/31/93 13400 9593.816
04/30/93 13950 9959.094
05/31/93 13890 9884.447
06/30/93 13320 9444.942
07/31/93 13290 9390.298
08/31/93 13390 9437.901
09/30/93 13500 9478.886
10/31/93 13410 9377.778
11/30/93 13510 9407.044
12/31/93 13460 9350.074
01/31/94 13760 9531.697
02/28/94 13620 9405.646
03/31/94 13640 9390.298
04/30/94 14000 9605.463
05/31/94 13970 9561.934
06/30/94 14320 9773.043
07/31/94 14350 9773.043
08/31/94 14310 9713.058
09/30/94 14740 9977.932
10/31/94 15340 10356.68
11/30/94 14740 9910.756
12/31/94 14790 9915.414
01/31/95 14970 9924.741
02/28/95 15050 10017.41
03/31/95 15490 10269.31
04/30/95 15480 10204.74
05/31/95 15270 10050.81
06/30/95 15390 10092.47
07/31/95 15470 10098.92
08/31/95 15100 9810.911
09/30/95 15480 10020.58
10/31/95 15530 10004.74
11/30/95 15130 9699.663
12/29/95 15370 9816.998
$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity
Sterling Performance Portfolio, L.P. on November 16, 1989, when the fund
started, and paid the maximum 0.4% sales charge. As the chart shows, by
December 31, 1995, the value of your investment would have grown to $15,309
- - a 53.09% increase on your initial investment. For comparison, look at how
the British pound sterling did over the same period. The same $10,000
investment would have fallen to $9,817 - a 1.83% decrease.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. The value of foreign
currencies compared to the
value of the U.S. dollar
changes daily. Changes in
interest rates and political
events can both affect a
currency's value compared to
the dollar. In turn, the share
price and return of a fund that
invests in foreign currencies
will vary. That means if you sell
your shares during a downturn,
you might lose money. But if
you can ride out short-term
ups and downs, you may have
a gain.
(checkmark)
FIDELITY YEN PERFORMANCE PORTFOLIO, L.P.
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. A fund's total
return includes changes in a fund's share price. If Fidelity had not
reimbursed certain expenses during the periods shown, the fund's returns
would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Yen Performance Portfolio, L.P. -3.60% 44.68% 63.20%
Yen Performance Portfolio, L.P. -3.99% 44.10% 62.55%
(incl. maximum 0.4% sales charge)
Japanese Yen -3.53% 30.95% 39.05%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one year, five years or since the fund
started on November 16, 1989. 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
Japanese yen, whose returns reflect a hypothetical unmanaged investment in
the currency itself. The exchange rates used in calculating these returns
are based on the mean between the best available bid and asked quotations
at 4 p.m. Eastern time from a pool of 500 banking institutions which
actively trade in this currency.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Yen Performance Portfolio, L.P. -3.60% 7.67% 8.32%
Yen Performance Portfolio, L.P. -3.99% 7.58% 8.25%
(incl. maximum 0.4% sales charge)
Japanese Yen -3.53% 5.54% 5.53%
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
Yen (499) Japanese
11/16/89 9960 10000
11/30/89 10049.64 10066.51
12/31/89 10019.76 9991.661
01/31/90 10029.72 9954.306
02/28/90 9760.8 9639.96
03/31/90 9232.92 9079.886
04/30/90 9252.84 9048.458
05/31/90 9701.04 9452.991
06/30/90 9750.84 9452.991
07/31/90 10209 9858.749
08/31/90 10398.24 9998.609
09/30/90 10846.44 10381.23
10/31/90 11593.44 11051.5
11/30/90 11463.96 10851.32
12/31/90 11234.88 10618.91
01/31/91 11653.2 10952.16
02/28/91 11543.64 10808.09
03/31/91 10936.08 10182.72
04/30/91 11414.16 10560.41
05/31/91 11284.68 10393.99
06/30/91 11404.2 10458.25
07/31/91 11473.92 10464.34
08/31/91 11583.48 10507.93
09/30/91 11981.88 10814.59
10/31/91 12230.88 10996.56
11/30/91 12370.32 11058.3
12/31/91 12918.12 11517.14
01/31/92 12878.28 11431.07
02/29/92 12529.68 11100.13
03/31/92 12270.72 10830.89
04/30/92 12260.76 10790.24
05/31/92 12778.68 11259.2
06/30/92 13017.72 11447.45
07/31/92 12878.28 11312.35
08/31/92 13336.44 11684.68
09/30/92 13724.88 11995.66
10/31/92 13366.32 11653.43
11/30/92 13246.8 11527.3
12/31/92 13236.84 11516.22
01/31/93 13266.72 11534.7
02/28/93 13973.88 12164.13
03/31/93 14422.08 12529.85
04/30/93 14920.08 12941.49
05/31/93 15477.84 13431.11
06/30/93 15547.56 13443.67
07/31/93 15906.12 13739.13
08/31/93 15916.08 13728.64
09/30/93 15726.84 13541.16
10/31/93 15398.16 13245.51
11/30/93 15348.36 13182.36
12/31/93 14969.88 12857.02
01/31/94 15398.16 13227.23
02/28/94 16005.72 13747.01
03/31/94 16314.48 14006.82
04/30/94 16503.72 14161.33
05/31/94 16015.68 13718.16
06/30/94 17041.56 14589.55
07/31/94 16802.52 14392.39
08/31/94 16752.72 14349.3
09/30/94 16941.96 14501.26
10/31/94 17340.36 14836.45
11/30/94 17011.68 14537.92
12/31/94 16862.28 14414.04
01/31/95 16882.2 14589.55
02/28/95 17400.12 14859.45
03/31/95 19471.8 16227.99
04/30/95 20019.6 17076.01
05/31/95 19920 17011.36
06/30/95 19870.2 16985.23
07/31/95 19003.68 16270.23
08/31/95 17240.76 14754.23
09/30/95 16892.16 14416.93
10/31/95 16503.72 14087.79
11/30/95 16493.76 14085.03
12/29/95 16254.72 13905.22
$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity Yen
Performance Portfolio, L.P. on November 16, 1989, when the fund started,
and paid the maximum 0.4% sales charge. As the chart shows, by December 31,
1995, the value of your investment would have grown to $16,255 - a 62.55%
increase on your initial investment. For comparison, look at how the
Japanese yen did over the same period. The same $10,000 investment would
have grown to $13,905 - a 39.05% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. The value of foreign
currencies compared to the
value of the U.S. dollar
changes daily. Changes in
interest rates and political
events can both affect a
currency's value compared to
the dollar. In turn, the share
price and return of a fund that
invests in foreign currencies
will vary. That means if you
sell your shares during a
market downturn, you might
lose money. But if you can ride
out short-term ups and downs,
you may have a gain.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Jacques Perold, Portfolio Manager of Fidelity Foreign
Currency Funds
Q. HOW DID THE FUNDS PERFORM, JACQUES?
A. For the 12 months ended December 31, 1995, the deutsche mark fund
returned 10.96%, compared to a 7.75% increase in the value of the mark
relative to the U.S. dollar; the sterling fund returned 3.92%, compared to
a 0.99% decrease in the pound; and the yen fund returned -3.60%, compared
to the 3.53% decrease in the yen.
Q. THE DOLLAR HIT A POST WORLD WAR II LOW OF 79.85 YEN IN APRIL. WHAT'S
HAPPENED SINCE THEN?
A. The dollar reversed its course and appreciated almost 31% to 104.5 yen.
The resurgence of the dollar after the low in April was significant because
this was a reversal of what had been the dollar's long-term downward trend.
A big part of this change was the staggering amount of capital inflows into
the U.S. Treasury bond market - particularly from Japanese public and
private investors - as an easing in short-term interest rates by the
Federal Reserve Board bolstered investors' confidence in U.S. capital
markets.
Q. WHAT OTHER FACTORS PUSHED UP THE DOLLAR VERSUS THE OTHER CURRENCIES?
A. Prior to this past summer, one factor that kept the dollar down was the
perception among currency traders that the Clinton administration wanted a
weak dollar in order to force trade concessions from the Japanese. During
the summer, however, the U.S. settled the majority of its trade dispute
with Japan. Additionally, the U.S. and others intervened in the currency
markets to boost the dollar.
Q. LOOKING AT THE YEAR-END FIGURES, THOUGH, IT CERTAINLY SEEMS THE MARK
APPRECIATED AGAINST THE DOLLAR. WHY WAS THAT?
A. As the previous manager noted in the funds' semiannual report, the mark
is often viewed as a "safe haven" during times of volatility. In the last
six months, there has been volatility with regard to the European Union.
The fiscal mandates for European monetary and economic union in 1999 - as
mandated by the Maastricht Treaty - are very strict. Whenever there was
market perception that one of the European countries would have trouble
meeting the criteria of the treaty, many investors bought marks.
Q. WHY DID THE STERLING - WHEN YOU LOOK AT IT IN U.S. DOLLAR VALUE - TRADE
WITHIN A RATHER NARROW RANGE?
A. For the most part, the pound was hampered by political problems in Great
Britain. Prime Minister John Major's Conservative Party entered 1995 with a
very slim majority in Parliament. During the year, that majority was
further reduced by attrition as well as several high-profile defections to
the Labor Party. Britain was viewed by many as sliding toward political
instability and, therefore, the sterling suffered somewhat.
Q. WHAT'S YOUR OUTLOOK?
A. The strength of the dollar in 1996 will largely depend on the outcome of
the federal budget debate in Washington and the result of the 1996
presidential election. Although there was tremendous surge in the dollar in
1995, I don't see that trend continuing to the same degree in 1996.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
FUND FACTS
GOAL: to approximate the
performance of each
currency relative to the U.S.
dollar while earning a
reasonable level of current
income
START DATE: November 16,
1989
SIZE: as of December 31,
1995, more than $11.5
million in the Fidelity
Deutsche Mark; $1.0
million in the Fidelity
Sterling; $2.8 million in the
Fidelity Yen performance
portfolios
MANAGER: Jacques Perold,
since October 1995; joined
Fidelity in 1986
(checkmark)
JACQUES PEROLD ON THE
RELATIONSHIP BETWEEN CURRENCY,
INTEREST RATES AND MARKETS:
"Currencies are just one of the
many factors in determining
the overall economic climate of
a country or region. For
example, take 1995's
performance of the Japanese
yen. From the beginning of the
year, the yen continuously
strengthened until it reached a
high - and a post World War II
low for the U.S. dollar - of
79.85 yen on April 20. Prior to
this event, the Bank of Japan
cut its short-term discount rate
to 1% and, in September,
would eventually cut it to
0.50%. Because a strong
currency hampered foreigner's
demands for Japan's goods
and thus made them less
competitive in foreign markets,
the corporate earnings of
Japan's large corporations
suffered. Through the
summer, Japan was firmly in
a recession.
"Fast forward to the fall of 1995
. . . The dollar had strengthened
against the yen. The Japanese
stock market rallied on the
anticipation of better earnings
resulting from overseas
demand, low interest rates and
attractively valued stocks.
While politics and trade policies
played a role in Japan's
economic fortunes, in the case
of 1995, the changes in the yen
highlight the interdependence
of currency, interest rates and
markets."
(solid bullet) Jacques Perold became
manager of the funds on
October 1, 1995, replacing
Scott Kuldell.
FIDELITY DEUTSCHE MARK PERFORMANCE PORTFOLIO, L.P.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
DECEMBER 31, 1995
ASSETS
Investment in repurchase agreements in a joint $ 11,575,000
trading account
Cash 821
Unrealized appreciation on foreign currency contracts 807
Receivable for fund shares sold 24,939
TOTAL ASSETS 11,601,567
LIABILITIES
Unrealized depreciation on foreign currency contracts $ 21,822
Payable for fund shares redeemed 16,659
Payable for closed foreign currency contracts 3,352
Accrued management fee 2,818
Other payables and accrued expenses 25,443
TOTAL LIABILITIES 70,094
NET ASSETS $ 11,531,473
Net Assets consist of:
Paid in capital $ 5,787,351
Undistributed net investment income 2,516,695
Accumulated undistributed net realized gain (loss) on 3,248,442
investments and foreign currency transactions
Net unrealized appreciation (depreciation) on (21,015)
investments and assets and liabilities in foreign
currencies
NET ASSETS, for 636,246 shares outstanding $ 11,531,473
SHARES OUTSTANDING HELD BY: 10,014
General Partners
Limited Partners 626,232
TOTAL SHARES OUTSTANDING 636,246
NET ASSET VALUE and redemption price per share $18.12
($11,531,473 (divided by) 636,246 shares)
Maximum offering price per share $18.19
(100/99.60 of $18.12)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED DECEMBER 31, 1995
INVESTMENT INCOME $ 794,305
Interest
EXPENSES
Management fee $ 68,357
Transfer agent fees 41,890
Accounting fees and expenses 45,000
Non-interested trustees' compensation 48
Custodian fees and expenses 20,850
Registration fees 21,730
Audit 18,472
Legal 1,264
Miscellaneous 511
Total expenses before reductions 218,122
Expense reductions (13,016) 205,106
NET INVESTMENT INCOME 589,199
REALIZED AND UNREALIZED GAIN (LOSS) 503,286
Net realized gain (loss) on foreign currency transactions
Change in net unrealized appreciation (depreciation) on (37,977)
assets and liabilities in foreign currencies
NET GAIN (LOSS) 465,309
NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 1,054,508
FROM OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1995 1994
INCREASE (DECREASE) IN NET ASSETS
Operations $ 589,199 $ 213,248
Net investment income
Net realized gain (loss) 503,286 646,081
Change in net unrealized appreciation (depreciation) (37,977) 124,104
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 1,054,508 983,433
FROM OPERATIONS
Share transactions 28,567,208 10,835,517
Net proceeds from sales of shares
Cost of shares redeemed (26,607,731) (9,078,477)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 1,959,477 1,757,040
FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 3,013,985 2,740,473
NET ASSETS
Beginning of period 8,517,488 5,777,015
End of period (including undistributed net investment $ 11,531,473 $ 8,517,488
income of $2,516,695 and $1,927,496, respectively)
OTHER INFORMATION
Shares
Sold 1,581,160 693,468
Redeemed (1,466,474) (583,738)
Net increase (decrease) 114,686 109,730
</TABLE>
FINANCIAL HIGHLIGHTS - DEUTSCHE MARK PERFORMANCE PORTFOLIO, L.P.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED DECEMBER 31,
1995 1994 1993 1992 1991
SELECTED PER-SHARE DATA
Net asset value, beginning $ 16.33 $ 14.03 $ 14.20 $ 14.05 $ 13.27
of period
Income from Investment
Operations
Net investment income .78 C .43 C .23 C .34 C .55 C
Net realized and unrealized 1.01 1.87 (.40) (.19) .23
gain (loss)
Total from investment operations 1.79 2.30 (.17) .15 .78
Net asset value, end of period $ 18.12 $ 16.33 $ 14.03 $ 14.20 $ 14.05
TOTAL RETURN A, B 10.96% 16.39% (1.20)% 1.07 5.88%
%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 11,531 $ 8,517 $ 5,777 $ 9,007 $ 24,070
(000 omitted)
Ratio of expenses to average 1.50% 1.50% 1.50% 1.29 1.50%
net assets D D D % D
Ratio of net investment income to 4.31% 2.81% 1.62% 2.38 4.38%
average net assets %
</TABLE>
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS).
B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE.
C NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
D FMR VOLUNTARILY 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.
FIDELITY STERLING PERFORMANCE PORTFOLIO, L.P.
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS
Investment in repurchase agreements in a joint $ 1,043,000
trading account
Cash 704
Unrealized appreciation on foreign currency contracts 10,953
Receivable for closed foreign currency contracts 464
TOTAL ASSETS 1,055,121
LIABILITIES
Payable for fund shares redeemed $ 11,018
Accrued management fee 146
Other payables and accrued expenses 22,923
TOTAL LIABILITIES 34,087
NET ASSETS $ 1,021,034
Net Assets consist of:
Undistributed net investment income $ 891,511
Accumulated undistributed net realized gain (loss) on 787,611
investments and foreign currency transactions
Net unrealized appreciation (depreciation) on 10,953
investments and assets and liabilities in foreign
currencies
Excess of amounts paid on value of shares redeemed (669,041)
over paid in capital
NET ASSETS, for 66,447 shares outstanding $ 1,021,034
SHARES OUTSTANDING HELD BY: 10,014
General Partners
Limited Partners 56,433
TOTAL SHARES OUTSTANDING 66,447
NET ASSET VALUE, and redemption price per share $15.37
($1,021,034 (divided by) 66,447 shares)
Maximum offering price per share $15.43
(100/99.60 of $15.37)
STATEMENT OF OPERATIONS
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED DECEMBER 31, 1995
INVESTMENT INCOME $ 112,036
Interest
EXPENSES
Management fee $ 9,471
Transfer agent fees 8,206
Accounting fees and expenses 45,000
Non-interested trustees' compensation 12
Custodian fees and expenses 21,049
Registration fees 20,480
Audit 8,935
Legal 1,295
Miscellaneous 266
Total expenses before reductions 114,714
Expense reductions (86,415) 28,299
NET INVESTMENT INCOME 83,737
REALIZED AND UNREALIZED GAIN (LOSS) 26,105
Net realized gain (loss) on foreign currency transactions
Change in net unrealized appreciation (depreciation) on 21,240
assets and liabilities in foreign currencies
NET GAIN (LOSS) 47,345
NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 131,082
FROM OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1995 1994
INCREASE (DECREASE) IN NET ASSETS
Operations $ 83,737 $ 96,419
Net investment income
Net realized gain (loss) 26,105 246,511
Change in net unrealized appreciation (depreciation) 21,240 (21,127)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 131,082 321,803
FROM OPERATIONS
Share transactions 1,792,743 2,153,790
Net proceeds from sales of shares
Cost of shares redeemed (4,246,010) (2,816,251)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING (2,453,267) (662,461)
FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS (2,322,185) (340,658)
NET ASSETS
Beginning of period 3,343,219 3,683,877
End of period (including undistributed net investment $ 1,021,034 $ 3,343,219
income of $891,511 and $807,774, respectively)
OTHER INFORMATION
Shares
Sold 117,685 151,048
Redeemed (277,244) (198,768)
Net increase (decrease) (159,559) (47,720)
</TABLE>
FINANCIAL HIGHLIGHTS - STERLING PERFORMANCE PORTFOLIO, L.P.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED DECEMBER 31,
1995 1994 1993 1992 1991
SELECTED PER-SHARE DATA
Net asset value, beginning $ 14.79 $ 13.46 $ 13.16 $ 14.97 $ 14.09
of period
Income from Investment
Operations
Net investment income .68 C .38 C .22 C .34 C .55 C
Net realized and unrealized (.10) E .95 .08 (2.15) .33
gain (loss)
Total from investment operations .58 1.33 .30 (1.81) .88
Net asset value, end of period $ 15.37 $ 14.79 $ 13.46 $ 13.16 $ 14.97
TOTAL RETURN A, B 3.92% 9.88% 2.28% (12.09)% 6.25%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 1,021 $ 3,343 $ 3,684 $ 1,715 $ 10,857
(000 omitted)
Ratio of expenses to average 1.50% 1.50% 1.50% 1.50% 1.50%
net assets D D D D D
Ratio of net investment income to 4.44% 2.69% 1.61% 2.27% 4.08%
average net assets
</TABLE>
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS).
B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE.
C NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
D FMR VOLUNTARILY AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES
DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
E THE AMOUNT SHOWN FOR A SHARE OUTSTANDING DOES NOT CORRESPOND WITH THE
AGGREGATE NET GAIN ON INVESTMENTS FOR THE PERIOD ENDED DUE TO THE TIMING OF
SALES AND REPURCHASES OF FUND SHARES IN RELATION TO FLUCTUATING MARKET
VALUES OF THE INVESTMENTS OF THE FUND.
FIDELITY YEN PERFORMANCE PORTFOLIO, L.P.
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS
Investment in repurchase agreements in a joint $ 3,071,000
trading account
Cash 1,037
Receivable for fund shares sold 7,545
Receivable from investment adviser for expense 5,701
reductions
TOTAL ASSETS 3,085,283
LIABILITIES
Unrealized depreciation on foreign currency contracts $ 59,311
Payable for closed foreign currency contracts 4,086
Payable for fund shares redeemed 105,571
Other payables and accrued expenses 22,848
TOTAL LIABILITIES 191,816
NET ASSETS $ 2,893,467
Net Assets consist of:
Paid in capital $ 629,090
Undistributed net investment income 873,548
Accumulated undistributed net realized gain (loss) on 1,450,140
investments and foreign currency transactions
Net unrealized appreciation (depreciation) on (59,311)
investments and assets and liabilities in foreign
currencies
NET ASSETS, for 177,260 shares outstanding $ 2,893,467
SHARES OUTSTANDING HELD BY: 10,014
General Partners
Limited Partners 167,246
TOTAL SHARES OUTSTANDING 177,260
NET ASSET VALUE and redemption price per share $16.32
($2,893,467 (divided by) 177,260 shares)
Maximum offering price per share $16.39
(100/99.60 of $16.32)
STATEMENT OF OPERATIONS
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED DECEMBER 31, 1995
INVESTMENT INCOME $ 301,243
Interest
EXPENSES
Management fee $ 25,637
Transfer agent fees 19,439
Accounting fees and expenses 45,000
Non-interested trustees' compensation 20
Custodian fees and expenses 23,583
Registration fees 20,830
Audit 7,742
Legal 1,148
Miscellaneous 328
Total expenses before reductions 143,727
Expense reductions (66,864) 76,863
NET INVESTMENT INCOME 224,380
REALIZED AND UNREALIZED GAIN (LOSS) (115,000)
Net realized gain (loss) on foreign currency transactions
Change in net unrealized appreciation (depreciation) on (377)
assets and liabilities in foreign currencies
NET GAIN (LOSS) (115,377)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 109,003
FROM OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1995 1994
INCREASE (DECREASE) IN NET ASSETS
Operations $ 224,380 $ 91,702
Net investment income
Net realized gain (loss) (115,000) 147,427
Change in net unrealized appreciation (depreciation) (377) 19,816
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 109,003 258,945
FROM OPERATIONS
Share transactions 15,772,636 6,054,031
Net proceeds from sales of shares
Cost of shares redeemed (16,492,788) (5,060,920)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING (720,152) 993,111
FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS (611,149) 1,252,056
NET ASSETS
Beginning of period 3,504,616 2,252,560
End of period (including undistributed net investment $ 2,893,467 $ 3,504,616
income of $873,548 and $649,168, respectively)
OTHER INFORMATION
Shares
Sold 823,652 363,818
Redeemed (853,436) (306,656)
Net increase (decrease) (29,784) 57,162
</TABLE>
FINANCIAL HIGHLIGHTS - YEN PERFORMANCE PORTFOLIO, L.P.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED DECEMBER 31,
1995 1994 1993 1992 1991
SELECTED PER-SHARE DATA
Net asset value, beginning $ 16.93 $ 15.03 $ 13.29 $ 12.97 $ 11.28
of period
Income from Investment
Operations
Net investment income .82 C .47 C .24 C .28 C .48
Net realized and unrealized (1.43) 1.43 1.50 .04 1.21
gain (loss)
Total from investment operations (.61) 1.90 1.74 .32 1.69
Net asset value, end of period $ 16.32 $ 16.93 $ 15.03 $ 13.29 $ 12.97
TOTAL RETURN A, B (3.60)% 12.64% 13.09% 2.47% 14.98%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 2,893 $ 3,505 $ 2,253 $ 3,801 $ 4,796
(000 omitted)
Ratio of expenses to average 1.50% 1.50% 1.50% 1.50% 1.50%
net assets D D D D D
Ratio of net investment income to 4.38% 2.86% 1.56% 2.13% 4.43%
average net assets
</TABLE>
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS).
B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE.
C NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
D FMR VOLUNTARILY 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.
NOTES TO FINANCIAL STATEMENTS
For the period ended December 31, 1995
1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Deutsche Mark Performance Portfolio, L.P., Fidelity Sterling
Performance Portfolio, L.P. and Fidelity Yen Performance Portfolio, L.P.,
(the funds) are registered under the Investment Company Act of 1940, as
amended (the 1940 Act), as open-end management investment companies
organized as limited partnerships in the State of Delaware. Each fund is
authorized to issue an unlimited number of limited partnership shares.
Fidelity Management & Research Company (FMR), a wholly owned subsidiary of
FMR Corp., is each fund's Non-Managing General Partner and investment
adviser. Each fund has twelve Managing General Partners who supervise the
management and operations of the fund. The following summarizes the
significant accounting policies of the funds:
FOREIGN CURRENCY TRANSLATION. The accounting records of the funds are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Purchases and
sales of securities, income receipts, and expense payments are translated
into U.S. dollars at the prevailing exchange rate on the respective dates
of the transactions.
Net realized gains and losses on foreign currency transactions represent
net gains and losses from sales and maturities of forward currency
contracts and disposition of foreign currencies.
INCOME TAXES. As limited partnerships, the funds are not subject to income
taxes. Instead, each partner is allocated a proportionate share of taxable
income.
INTEREST INCOME. Interest income is accrued as earned.
DISTRIBUTIONS AND ALLOCATIONS. The funds do not intend to make cash
distributions. Net interest income,realized gains and losses, and other
deductions and credits of each fund are allocated daily to the outstanding
shares of each fund. The amounts allocated are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles. These differences are primarily due to differing
treatments for foreign currency transactions.
INVESTMENT TRANSACTIONS. Investment transactions are accounted for as of
trade date.
2. OPERATING POLICIES.
FORWARD FOREIGN CURRENCY CONTRACTS. The funds use forward contracts to
acquire exposure to foreign currencies. These contracts involve market risk
in excess of the unrealized gain or loss reflected in each fund's Statement
of Assets and Liabilities. The U.S. dollar value of the currencies each
fund has committed to buy is shown in Note 7 under the caption "Forward
Foreign Currency Contracts." This amount represents the aggregate exposure
each fund has acquired through currency contracts at period end. Losses may
arise due to changes in the value of the foreign currency or if the
counterparties do not perform under the contracts' terms.
The U.S. dollar value of forward foreign currency contracts is determined
using forward currency exchange rates supplied by a quotation service.
Purchases and sales of forward foreign currency contracts having the same
settlement
2. OPERATING POLICIES - CONTINUED
FORWARD FOREIGN CURRENCY CONTRACTS - CONTINUED
date and broker are offset and any realized gain (loss) is recognized on
the date of offset; otherwise, gain (loss) is recognized on settlement
date.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the funds, along with other affiliated
entities of FMR, may transfer uninvested cash balances into one or more
joint trading accounts. These balances are invested in one or more
repurchase agreements that mature in 60 days or less from the date of
purchase, and are collateralized by U.S. Treasury or Federal Agency
obligations.
REPURCHASE AGREEMENTS. The funds, through their custodian, receive delivery
of the underlying U.S. Treasury or Federal Agency securities, the market
value of which is required to be at least equal to the repurchase price.
For term repurchase agreement transactions, the underlying securities are
marked-to-market daily and maintained at a value at least equal to the
repurchase price. FMR, the funds' investment adviser, is responsible for
determining that the value of the underlying securities remains in
accordance with the market value requirements stated above.
3. JOINT TRADING ACCOUNT.
Each fund may use a joint trading account for the purpose of investing in
repurchase agreements. These repurchase agreements were with entities whose
creditworthiness has been reviewed and found satisfactory by FMR. The
maturity values of the joint trading account investments were $11,582,562
for Fidelity Deutsche Mark Performance Portfolio, L.P., $1,043,681 for
Fidelity Sterling Performance Portfolio, L.P., and $3,073,006 for Fidelity
Yen Performance Portfolio, L.P., all at 5.88%. The investments in
repurchase agreements through the joint trading account are summarized as
follows:
SUMMARY OF JOINT TRADING
Dated December 29, 1995, due January 2, 1996
Number of dealers or banks 23
Maximum amount with one dealer or bank 19.6%
Aggregate principal amount of agreements $24,037,217,000
Aggregate maturity amount of agreements $24,052,911,000
Aggregate market value of collateral $24,538,741,000
Coupon rates of collateral 0.0% to 15 3/4%
Maturity dates of collateral 1/4/96 to 8/15/25
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As each fund's investment adviser, FMR receives a fee that
is computed daily at an annual rate of .50% of the fund's average net
assets.
SALES LOAD. For the period, Fidelity Distributors Corporation (FDC), an
affiliate of FMR and the general distributor of the fund, received sales
charges of $78,161, $10,564 and $43,187 for the Deutsche Mark, Sterling and
Yen Performance Portfolios, respectively, on sales of shares of each fund.
TRANSFER AGENT FEES. Fidelity Service Co. (FSC), an affiliate of FMR, is
the funds' transfer, dividend disbursing and shareholder servicing agent.
FSC receives account fees and asset-based fees that vary according to
account size and type of account. FSC pays for typesetting, printing and
mailing of all shareholder reports, except proxy statements. For the
period, the transfer agent fees were equivalent to an annual rate of .31%,
.43% and .38% of average net assets for Deutsche Mark, Sterling and Yen
Performance Portfolios, respectively.
ACCOUNTING FEES. FSC maintains the funds' accounting records. The fee is
based on the level of average net assets for the month plus out-of-pocket
expenses.
5. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse the funds' operating expenses
(excluding interest, taxes, brokerage commissions and extraordinary
expenses) above an annual rate of 1.50% of average net assets. FMR retains
the ability to be repaid by the funds in the event that expenses fall below
the limit prior to the end of the fiscal year. For the period, the
reimbursement reduced the funds' expenses by $13,016, $86,415 and $66,864
for the Deutsche Mark, Sterling and Yen Performance Portfolios,
respectively.
6. BENEFICIAL INTEREST.
At the end of the period, FMR was record owner of approximately 15% and 6%,
respectively, of the total outstanding shares of Fidelity Sterling
Performance Portfolio, L.P. and Fidelity Yen Performance Portfolio, L.P.,
respectively.
7. COMMITMENTS.
At period end, each fund had various contracts open which obligate the
funds to receive currencies at specified future dates. Open contracts were
as follows:
FORWARD FOREIGN CURRENCY CONTRACTS
SETTLEMENT UNREALIZED
DATE VALUE GAIN/(LOSS)
CONTRACTS TO BUY
FIDELITY DEUTSCHE MARK PERFORMANCE PORTFOLIO, L.P.
16,283,974 DEM 3/1/96 $ 11,360,661 $ (21,015)
(Payable amount $11,381,676)
FIDELITY STERLING PERFORMANCE PORTFOLIO, L.P.
649,037 GBP 3/1/96 $ 1,004,995 $ 10,953
(Payable amount $994,042)
FIDELITY YEN PERFORMANCE PORTFOLIO, L.P.
289,224,283 JPY 3/1/96 $ 2,822,637 $ (59,311)
(Payable amount $2,881,948)
REPORT OF INDEPENDENT ACCOUNTANTS
To the Partners of Fidelity Deutsche Mark Performance Portfolio, L.P.,
Fidelity Sterling Performance Portfolio, L.P. and Fidelity Yen Performance
Portfolio, L.P.:
We have audited the accompanying statements of assets and liabilities of
Fidelity Deutsche Mark Performance Portfolio, L.P., Fidelity Sterling
Performance Portfolio, L.P. and Fidelity Yen Performance Portfolio, L.P. as
of December 31, 1995, and the related statements of operations for the year
then ended, the statements of changes in net assets for each of the two
years in the period then ended and the financial highlights for each of the
five years in the period then ended. These financial statements and
financial highlights are the responsibility of each fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1995 by correspondence with the
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Deutsche Mark Performance Portfolio, L.P., Fidelity Sterling
Performance Portfolio, L.P. and Fidelity Yen Performance Portfolio, L.P.,
as of December 31, 1995, the results of their operations for the year then
ended, the changes in their net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years
in the period then ended, in conformity with generally accepted accounting
principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
February 26, 1996
INVESTMENT ADVISER
Fidelity Management &
Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Fred L. Henning, Jr., Vice President
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
MANAGING GENERAL PARTNERS
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
NON-MANAGING GENERAL PARTNER
Fidelity Management &
Research Company
Boston, MA
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
CUSTODIAN
The Chase Manhattan Bank, N.A.
New York, NY
FIDELITY'S TAXABLE BOND FUNDS
Capital & Income Fund
Ginnie Mae Fund
Global Bond Fund
Government Securities Fund
Intermediate Bond Fund
Investment Grade Bond Fund
Mortgage Securities Fund
New Markets Income Fund
Short-Intermediate Government Fund
Short-Term Bond Fund
Short-Term World Bond Fund
Spartan(registered trademark) Ginnie Mae Fund
Spartan Government Income Fund
Spartan High Income Fund
Spartan Investment Grade Bond Fund
Spartan Limited Maturity
Government Fund
Spartan Long-Term Government
Bond Fund
Spartan Short-Intermediate Government Fund
Spartan Short-Term Bond Fund
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
(registered trademark)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
