(2_FIDELITY_LOGOS)FIDELITY
FOREIGN CURRENCY
FUNDS
SEMIANNUAL REPORT
JUNE 30, 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 13 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.
NOTES 25 Notes to the financial statements.
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, THE FEDERAL
RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISK,
INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
NEITHER THE FUNDS NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL
1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST
OR SEND MONEY.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
Although there have been positive market indications so far in 1995, no one
can predict what lies ahead for investors. Last 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. Each
performance figure 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 JUNE 30, 1995 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND
Deutsche Mark Performance Portfolio, 13.84% 18.56% 61.23% 85.90%
L.P.
Deutsche Mark Performance Portfolio,
L.P. 13.38% 18.08% 60.59% 85.16%
(incl. maximum 0.4% sales charge)
German Deutsche Mark 12.16% 14.91% 20.21% 33.11%
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 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 JUNE 30, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Deutsche Mark Performance Portfolio, L.P. 18.56% 10.02% 11.65%
Deutsche Mark Performance Portfolio, L.P.
(incl. maximum 0.4% sales charge) 18.08% 9.94% 11.57%
German Deutsche Mark 14.91% 3.75% 5.21%
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 Mark (Deutsche Mark P
11/16/89 9960.00 10000.00
11/30/89 10308.60 10322.20
12/31/89 10896.24 10877.85
01/31/90 10995.84 10913.35
02/28/90 10916.16 10772.70
03/31/90 11075.52 10855.37
04/30/90 11234.88 10949.09
05/31/90 11175.12 10839.38
06/30/90 11483.88 11073.04
07/31/90 12081.48 11587.27
08/31/90 12230.88 11668.15
09/30/90 12370.32 11735.16
10/31/90 12848.40 12111.57
11/30/90 13097.40 12279.80
12/31/90 13216.92 12330.85
01/31/91 13446.00 12452.77
02/28/91 13107.36 12058.36
03/31/91 11802.60 10798.00
04/30/91 11872.32 10775.86
05/31/91 11683.08 10550.20
06/30/91 11314.56 10154.06
07/31/91 11832.48 10544.15
08/31/91 11882.28 10526.04
09/30/91 12539.64 11045.11
10/31/91 12569.52 11000.18
11/30/91 12987.84 11311.44
12/31/91 13993.80 12125.95
01/31/92 13266.72 11414.65
02/29/92 13117.32 11219.65
03/31/92 13187.04 11192.33
04/30/92 13236.84 11158.37
05/31/92 13645.20 11439.50
06/30/92 14521.68 12083.72
07/31/92 15079.44 12471.35
08/31/92 15955.92 13111.59
09/30/92 16025.64 12991.17
10/31/92 14730.84 11920.78
11/30/92 14342.40 11558.14
12/31/92 14143.20 11347.73
01/31/93 14302.56 11413.23
02/28/93 14083.44 11178.72
03/31/93 14501.76 11445.20
04/30/93 14790.60 11601.89
05/31/93 14830.44 11583.62
06/30/93 13884.24 10785.34
07/31/93 13675.08 10559.29
08/31/93 14262.72 10969.34
09/30/93 14691.00 11265.01
10/31/93 14292.60 10907.53
11/30/93 14103.36 10721.82
12/31/93 13973.88 10579.33
01/31/94 14053.56 10603.13
02/28/94 14362.32 10790.40
03/31/94 14681.04 10991.63
04/30/94 14900.16 11117.90
05/31/94 15009.72 11168.54
06/30/94 15617.28 11583.62
07/31/94 15696.96 11616.55
08/31/94 15756.72 11627.57
09/30/94 16105.32 11852.40
10/31/94 16653.12 12228.35
11/30/94 16015.68 11717.96
12/31/94 16264.68 11867.70
01/31/95 16573.44 11991.52
02/28/95 17300.52 12566.80
03/31/95 18475.80 13373.82
04/30/95 18376.20 13259.07
05/31/95 18047.52 12998.52
06/30/95 18515.64 13310.89
$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 June 30, 1995, the value of your investment would have grown to $18,516
- an 85.16% 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 $13,311 - a 33.11% 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. Each
performance figure 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 JUNE 30, 1995 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND
Sterling Performance Portfolio, L.P. 4.06% 7.47% 29.00% 53.90%
Sterling Performance Portfolio, L.P.
(incl. maximum 0.4% sales 3.64% 7.04% 28.49% 53.28%
charge)
British Pound Sterling 1.79% 3.27% -8.83% 0.92%
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 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 JUNE 30, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Sterling Performance Portfolio, L.P. 7.47% 5.23% 7.97%
Sterling Performance Portfolio, L.P.
(incl. maximum 0.4% sales charge) 7.04% 5.14% 7.89%
British Pound Sterling 3.27% -1.83% 0.16%
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 (498) British Pound St
11/16/89 10000.00 10000.00
11/30/89 9970.00 9938.77
12/31/89 10320.00 10201.45
01/31/90 10850.00 10627.94
02/28/90 10940.00 10611.90
03/31/90 10870.00 10416.32
04/30/90 10950.00 10377.05
05/31/90 11330.00 10624.37
06/30/90 11930.00 11070.30
07/31/90 12850.00 11796.50
08/31/90 13140.00 11965.97
09/30/90 13210.00 11876.17
10/31/90 13860.00 12298.43
11/30/90 14020.00 12305.60
12/31/90 14090.00 12238.98
01/31/91 14450.00 12448.38
02/28/91 14200.00 12103.25
03/31/91 13060.00 11018.28
04/30/91 13130.00 10961.04
05/31/91 12970.00 10741.56
06/30/91 12470.00 10264.31
07/31/91 13070.00 10669.14
08/31/91 13130.00 10640.44
09/30/91 13770.00 11076.12
10/31/91 13790.00 11010.61
11/30/91 14090.00 11191.65
12/31/91 14970.00 11820.73
01/31/92 14450.00 11311.65
02/29/92 14310.00 11128.69
03/31/92 14220.00 10985.77
04/30/92 14680.00 11255.33
05/31/92 15190.00 11572.21
06/30/92 15940.00 12064.04
07/31/92 16210.00 12198.88
08/31/92 16820.00 12584.49
09/30/92 15420.00 11307.61
10/31/92 13480.00 9855.21
11/30/92 13200.00 9599.64
12/31/92 13160.00 9561.93
01/31/93 13080.00 9409.84
02/28/93 12550.00 9017.09
03/31/93 13400.00 9593.82
04/30/93 13950.00 9959.09
05/31/93 13890.00 9884.45
06/30/93 13320.00 9444.94
07/31/93 13290.00 9390.30
08/31/93 13390.00 9437.90
09/30/93 13500.00 9478.89
10/31/93 13410.00 9377.78
11/30/93 13510.00 9407.04
12/31/93 13460.00 9350.07
01/31/94 13760.00 9531.70
02/28/94 13620.00 9405.65
03/31/94 13640.00 9390.30
04/30/94 14000.00 9605.46
05/31/94 13970.00 9561.93
06/30/94 14320.00 9773.04
07/31/94 14350.00 9773.04
08/31/94 14310.00 9713.06
09/30/94 14740.00 9977.93
10/31/94 15340.00 10356.68
11/30/94 14740.00 9910.76
12/31/94 14790.00 9915.41
01/31/95 14970.00 9924.74
02/28/95 15050.00 10017.41
03/31/95 15490.00 10269.31
04/30/95 15480.00 10204.74
05/31/95 15270.00 10050.81
06/30/95 15390.00 10092.47
$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
June 30, 1995, the value of your investment would have grown to $15,328 - a
53.28% 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 grown to $10,092 - an 0.92% 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 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. Each
performance figure 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 JUNE 30, 1995 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND
Yen Performance Portfolio, L.P. 17.84% 16.60% 103.78% 99.50%
Yen Performance Portfolio, L.P.
(incl. maximum 0.4% sales 17.37% 16.13% 102.96% 98.70%
charge)
Japanese Yen 17.84% 16.42% 79.68% 69.85%
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 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 JUNE 30, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Yen Performance Portfolio, L.P. 16.60% 15.30% 13.06%
Yen Performance Portfolio, L.P.
(incl. maximum 0.4% sales charge) 16.13% 15.21% 12.98%
Japanese Yen 16.42% 12.43% 9.87%
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 Yen Rel
11/16/89 9960.00 10000.00
11/30/89 10049.64 10066.51
12/31/89 10019.76 9991.66
01/31/90 10029.72 9954.31
02/28/90 9760.80 9639.96
03/31/90 9232.92 9079.89
04/30/90 9252.84 9048.46
05/31/90 9701.04 9452.99
06/30/90 9750.84 9452.99
07/31/90 10209.00 9858.75
08/31/90 10398.24 9998.61
09/30/90 10846.44 10381.23
10/31/90 11593.44 11051.50
11/30/90 11463.96 10851.32
12/31/90 11234.88 10618.91
01/31/91 11653.20 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 11404.20 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 11058.30
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 11259.20
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 13246.80 11527.30
12/31/92 13236.84 11516.22
01/31/93 13266.72 11534.70
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 14349.30
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 16882.20 14589.55
02/28/95 17400.12 14859.45
03/31/95 19471.80 16227.99
04/30/95 20019.60 17076.01
05/31/95 19920.00 17011.36
06/30/95 19870.20 16985.23
$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 June 30,
1995, the value of your investment would have grown to $19,870 - a 98.70%
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 $16,985 - a 69.85% 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 Scott Kuldell, Portfolio Manager of Fidelity
Foreign Currency Funds
Q. HOW HAVE THE FUNDS PERFORMED, SCOTT?
A. For the six months ended June 30, 1995, the deutsche mark fund rose
13.84%, compared to a 12.16% increase in the value of the mark relative to
the U.S. dollar; the sterling fund rose 4.06% compared to a 1.79% increase
in the pound; and the yen fund gained 17.84%, compared to a 17.84% increase
in the yen. For the 12-month period ended June 30, 1995, the deutsche mark
fund rose 18.56% while the mark rose 14.91% relative to the U.S. dollar;
the sterling fund rose 7.47% relative to a 3.27% increase in sterling; and
the yen fund gained 16.60% against the 16.42% increase in the yen.
Q. WHY DO YOU THINK THE FUNDS BEAT THEIR RESPECTIVE EXCHANGE RATES?
A. The goal of each fund is to earn the exchange rate plus the interest
rate of the country it follows. To do this, the funds invest in money
market securities either denominated in the foreign currency, or
denominated in U.S. dollars but effectively tied to the foreign currency
through forward currency contracts. The idea is to replicate the return of
a foreign-denominated money market instrument. For example, if interest
rates in the U.K. are 6%, the change in the NAV of the sterling portfolio
should beat movements in the exchange rate by 6%, less fund expenses.
Q. THE YEN FUND CONTINUED TO PERFORM WELL DURING THE PAST SIX MONTHS. WHY
DO YOU THINK IT REMAINS SO STRONG?
A. There are a couple of factors at work. With the trade imbalance between
Japan and the U.S., a situation has arisen in which there are many U.S.
dollars in Japan. In the past, many Japanese corporations bought Treasury
bonds with those dollars and assumed currency risk. In recent years, many
Japanese have lost a lot of money that way due to the declining value of
the dollar. The ongoing deflation in Japan has weakened the balance sheet
of many Japanese corporations and they have been required to sell those
dollars in order to strengthen their own positions. This has contributed to
the downward spiral of the dollar. Another element that may be at work is
that the Clinton Administration is allowing the dollar to weaken in order
to put pressure on the Japanese government to do something about the trade
imbalance. The assumption is that the continued strength of the yen would
put the Japanese government in an uncomfortable position and encourage it
to open up Japanese markets.
Q. WHAT ABOUT THE GERMAN MARK? HOW DID IT PERFORM DURING THE PAST SIX
MONTHS?
A. The German mark has been following the yen. We've seen the German
currency doing well against all of the European currencies - ultimately
leading to the mark's strengthening against the dollar. One of the reasons
is deteriorating fiscal situations in peripheral European countries that
have led to the weakening of their currencies against the dollar and the
emergence of the deutsche mark as a "safe haven." When people are selling
the Italian lira to buy marks, there can be a weakening effect on the
dollar. In sum, the strength of the mark is the result of both the strong
fiscal picture in Germany, relative to other European countries, and the
weak dollar versus the yen.
Q. CERTAINLY STERLING HASN'T PERFORMED AS WELL AS THE YEN AND THE MARK . .
.
A. No it hasn't. As I've explained in earlier reports, sterling has acted
like a hybrid between the dollar and the mark for the past several years.
When the deutsche mark most recently strengthened against the dollar,
sterling strengthened as well, but not by as much. During the period, the
U.K. was suffering through some political problems. Until Prime Minister
John Major forced a referendum on his control of the Tory Party in May,
sterling had come under pressure for quite some time.
Q. HOW LONG DO YOU THINK THE DOLLAR CAN CONTINUE ITS DOWNWARD TREND?
A. That's very difficult to say. The yen has been strong since February of
1985 when the dollar peaked. In September of that year, the Plaza Accord
was signed. It was an agreement among the G7 - the United States, Canada,
Japan, Germany, Great Britain, France and Italy - to push down the value of
the dollar. Since then, the dollar has been in a downturn. Many things
could reverse the decline of the dollar. If the U.S. trade deficit with
Japan is reduced significantly, or if Congress cuts the budget deficit, it
could help. Similarly, tax cuts could turn the dollar around. From 1980 to
1985 the dollar rose strongly. This was largely due to tax cuts imposed by
President Reagan. In general, if taxes are lower, investors' expected
after-tax returns are higher and financial assets denominated in dollars
are much more valuable. A stronger dollar might be good news for the U.S.,
but not for the foreign currency funds.
Q. WHAT'S YOUR OUTLOOK FOR THE NEXT SIX MONTHS?
A. I feel pretty confident saying that the yen will be weaker five or 10
years from now. Purchasing power parity would suggest that the exchange
rate between the two countries should adjust so that the real or
inflation-adjusted price of a given basket of goods is the same in both
countries. However in the short-term, it's nearly impossible to predict.
Recently, the agreement between the U.S. and Japan on trade issues seems to
have ushered in a period of relative cooperation between the two countries,
which has led to joint intervention operations to support the dollar. The
promise of real efforts to control the U.S. budget deficit has also
provided the dollar with mild support. The deutsche mark, on the other
hand, is not nearly as overvalued as the yen. Short-term interest rate
differentials between the U.S. and Germany are small, and economic growth
rates are similar between the two countries. In general, foreign currency
markets are driven in the short-term by traders' perceptions of where the
dollar is going to go. And that's anyone's guess.
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 June 30, 1995,
$13.9 million in the Fidelity
Deutsche Mark; $1.1 million
in the Fidelity Sterling, and
$7.6 million in the Fidelity Yen
Performance Portfolios
MANAGER: Scott Kuldell, since
April 1994; manager, Fidelity
Short-Term World Income
Fund, since April 1994; joined
Fidelity in 1987
(checkmark)
SCOTT KULDELL ON USING THE
FUNDS FOR DIVERSIFICATION
PURPOSES:
"In general, foreign currency
funds do well when the dollar
is weak. So, if the dollar
declines against the yen,
mark, or sterling, the funds'
investments in these
currencies protect the
shareholders' purchasing
power of goods from these
countries.
"In addition, foreign currency
funds usually perform well
when the U.S. stock and bond
markets are having a difficult
time, and poorly when these
markets do well. We've seen
this in the past. For example,
1992 and 1993 were excellent
years for stocks and bonds,
but horrible years for currency
funds. However, in 1994, the
reverse was true.
"Because currency funds can
offer protection against a
weak dollar and a falling stock
and bond market, it may be
wise to include them in a
well-diversified portfolio of
investments."
FIDELITY DEUTSCHE MARK PERFORMANCE PORTFOLIO, L.P.
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1995 (UNAUDITED)
ASSETS
Investment in repurchase agreements in a joint $ 13,795,000
trading account
Cash 7,550
Unrealized appreciation on foreign currency contracts 156,703
Receivable for fund shares sold 27,009
TOTAL ASSETS 13,986,262
LIABILITIES
Unrealized depreciation on foreign currency contracts $ 23
Payable for closed foreign currency contracts 2,035
Payable for fund shares redeemed 42,302
Accrued management fee 5,678
Other payables and accrued expenses 22,031
TOTAL LIABILITIES 72,069
NET ASSETS $ 13,914,193
Net Assets consist of:
Paid in capital $ 7,801,821
Undistributed net investment income 2,244,760
Accumulated undistributed net realized gain (loss) on 3,710,932
investments and foreign currency transactions
Net unrealized appreciation (depreciation) on 156,680
investments and assets and liabilities in foreign
currencies
NET ASSETS, for 748,297 shares outstanding $ 13,914,193
SHARES OUTSTANDING HELD BY: 10,014
General Partners
Limited Partners 738,283
TOTAL SHARES OUTSTANDING 748,297
NET ASSET VALUE and redemption price per share $18.59
($13,914,193 (divided by) 748,297 shares)
Maximum offering price per share $18.66
(100/99.60 of $18.59)
STATEMENT OF OPERATIONS
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)
INVESTMENT INCOME $ 427,698
Interest
EXPENSES
Management fee $ 36,807
Transfer agent fees 18,052
Accounting fees and expenses 22,501
Non-interested trustees' compensation 24
Custodian fees and expenses 10,672
Registration fees 18,700
Audit 7,632
Legal 529
Miscellaneous 277
Total expenses before reductions 115,194
Expense reductions (4,760) 110,434
NET INVESTMENT INCOME 317,264
REALIZED AND UNREALIZED GAIN (LOSS) 965,776
Net realized gain (loss) on foreign currency transactions
Change in net unrealized appreciation (depreciation) on 139,718
assets and liabilities in foreign currencies
NET GAIN (LOSS) 1,105,494
NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 1,422,758
FROM OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31,
1995 1994
(UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS
Operations $ 317,264 $ 213,248
Net investment income
Net realized gain (loss) 965,776 646,081
Change in net unrealized appreciation (depreciation) 139,718 124,104
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 1,422,758 983,433
FROM OPERATIONS
Share transactions 21,753,542 10,835,517
Net proceeds from sales of shares
Cost of shares redeemed (17,779,595) (9,078,477)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 3,973,947 1,757,040
FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 5,396,705 2,740,473
NET ASSETS
Beginning of period 8,517,488 5,777,015
End of period (including undistributed net investment $ 13,914,193 $ 8,517,488
income of $2,244,760 and $1,927,496, respectively)
OTHER INFORMATION
Shares 1,208,656 693,468
Sold
Redeemed (981,919) (583,738)
Net increase (decrease) 226,737 109,730
</TABLE>
FINANCIAL HIGHLIGHTS - DEUTSCHE MARK PERFORMANCE PORTFOLIO, L.P.
SIX MONTHS YEARS ENDED DECEMBER 31,
ENDED
JUNE 30, 1995
(UNAUDITED) 1994 1993 1992 1991 1990
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
Net asset value, $ 16.33 $ 14.03 $ 14.20 $ 14.05 $ 13.27 $ 10.94
beginning of period
Income from
Investment
Operations
Net investment .39 D .43 D .23 D .34 D .55 D .61
income
Net realized and 1.87 1.87 (.40) (.19) .23 1.72
unrealized
gain (loss)
Total from 2.26 2.30 (.17) .15 .78 2.33
investment
operations
Net asset value, end $ 18.59 $ 16.33 $ 14.03 $ 14.20 $ 14.05 $ 13.27
of period
TOTAL RETURN B, C 13.84% 16.39% (1.20) 1.07% 5.88% 21.30%
%
RATIOS AND
SUPPLEMENTAL DATA
Net assets, end of $ 13,914 $ 8,517 $ 5,777 $ 9,007 $ 24,070 $ 12,115
period (000 omitted)
Ratio of expenses to 1.50% A 1.50% 1.50% 1.29% 1.50% 1.50%
average net assets
Ratio of expenses to 1.56% A 2.10% 2.21% 1.29% 1.80% 2.50%
average net assets E
before expense
reductions
Ratio of net 4.31% A 2.81% 1.62% 2.38% 4.38% 6.62%
investment income
to average net
assets
</TABLE>
A ANNUALIZED
B 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).
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.
E LIMITED IN ACCORDANCE WITH A STATE EXPENSE LIMITATION.
FIDELITY STERLING PERFORMANCE PORTFOLIO, L.P.
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1995 (UNAUDITED)
ASSETS
Investment in repurchase agreements in a joint $ 1,181,000
trading account
Cash 825
Receivable from investment adviser for expense 5,763
reductions
TOTAL ASSETS 1,187,588
LIABILITIES
Unrealized depreciation on foreign currency contracts $ 9,704
Payable for closed foreign currency contracts 1,717
Payable for fund shares redeemed 10,956
Accrued management fee 483
Other payables and accrued expenses 25,666
TOTAL LIABILITIES 48,526
NET ASSETS $ 1,139,062
Net Assets consist of:
Undistributed net investment income $ 867,023
Accumulated undistributed net realized gain (loss) on 836,050
investments and foreign currency transactions
Net unrealized appreciation (depreciation) on (9,704)
investments and assets and liabilities in foreign
currencies
Excess of amounts paid on value of shares redeemed (554,307)
over paid in capital
NET ASSETS, for 74,024 shares outstanding $ 1,139,062
SHARES OUTSTANDING HELD BY: 10,014
General Partners
Limited Partners 64,010
TOTAL SHARES OUTSTANDING 74,024
NET ASSET VALUE and redemption price per share $15.39
($1,139,062 (divided by) 74,024 shares)
Maximum offering price per share $15.45
(100/99.60 of $15.39)
STATEMENT OF OPERATIONS
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)
INVESTMENT INCOME $ 79,341
Interest
EXPENSES
Management fee $ 6,716
Transfer agent fees 4,138
Accounting fees and expenses 22,500
Non-interested trustees' compensation 9
Custodian fees and expenses 10,659
Registration fees 17,475
Audit 8,061
Legal 519
Miscellaneous 151
Total expenses before reductions 70,228
Expense reductions (50,136) 20,092
NET INVESTMENT INCOME 59,249
REALIZED AND UNREALIZED GAIN (LOSS) 74,544
Net realized gain (loss) on foreign currency transactions
Change in net unrealized appreciation (depreciation) on 583
assets and liabilities in foreign currencies
NET GAIN (LOSS) 75,127
NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 134,376
FROM OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31,
1995 1994
(UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS
Operations $ 59,249 $ 96,419
Net investment income
Net realized gain (loss) 74,544 246,511
Change in net unrealized appreciation (depreciation) 583 (21,127)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 134,376 321,803
FROM OPERATIONS
Share transactions 1,701,656 2,153,790
Net proceeds from sales of shares
Cost of shares redeemed (4,040,189) (2,816,251)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING (2,338,533) (662,461)
FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS (2,204,157) (340,658)
NET ASSETS
Beginning of period 3,343,219 3,683,877
End of period (including undistributed net investment $ 1,139,062 $ 3,343,219
income of $867,023 and $807,774, respectively)
OTHER INFORMATION
Shares
Sold 111,768 151,048
Redeemed (263,750) (198,768)
Net increase (decrease) (151,982) (47,720)
</TABLE>
FINANCIAL HIGHLIGHTS - STERLING PERFORMANCE PORTFOLIO, L.P.
SIX MONTHS YEARS ENDED DECEMBER 31,
ENDED
JUNE 30, 1995
(UNAUDITED) 1994 1993 1992 1991 1990
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
Net asset value, $ 14.79 $ 13.46 $ 13.16 $ 14.97 $ 14.09 $ 10.32
beginning of period
Income from
Investment
Operations
Net investment .34 D .38 D .22 D .34 D .55 D .94
income
Net realized and .26 .95 .08 (2.15) .33 2.83
unrealized gain
(loss)
Total from .60 1.33 .30 (1.81) .88 3.77
investment
operations
Net asset value, end $ 15.39 $ 14.79 $ 13.46 $ 13.16 $ 14.97 $ 14.09
of period
TOTAL RETURN B, C 4.06% 9.88% 2.28% (12.09)% 6.25% 36.53%
RATIOS AND
SUPPLEMENTAL DATA
Net assets, end of $ 1,139 $ 3,343 $ 3,684 $ 1,715 $ 10,857 $ 3,301
period (000 omitted)
Ratio of expenses to 1.50% A 1.50% 1.50% 1.50% 1.50% 1.50%
average net assets
Ratio of expenses to 2.60% A, 2.60 E 2.60% 2.34% 2.60 E 2.50%
average net assets E E E
before expense
reductions
Ratio of net 4.44% A 2.69% 1.61% 2.27% 4.08% 6.77%
investment income
to average net
assets
</TABLE>
A ANNUALIZED
B 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).
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.
E LIMITED IN ACCORDANCE WITH A STATE EXPENSE LIMITATION.
FIDELITY YEN PERFORMANCE PORTFOLIO, L.P.
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1995 (UNAUDITED)
ASSETS
Investment in repurchase agreements in a joint $ 7,662,000
trading account
Cash 3,889
Receivable for closed foreign currency contracts 14
Receivable for fund shares sold 28,930
Receivable from investment adviser for expense 1,572
reductions
TOTAL ASSETS 7,696,405
LIABILITIES
Unrealized depreciation on foreign currency contracts $ 46,972
Payable for fund shares redeemed 4,990
Accrued management fee 3,024
Other payables and accrued expenses 25,118
TOTAL LIABILITIES 80,104
NET ASSETS $ 7,616,301
Net Assets consist of:
Paid in capital $ 4,513,168
Undistributed net investment income 788,331
Accumulated undistributed net realized gain (loss) on 2,361,774
investments and foreign currency transactions
Net unrealized appreciation (depreciation) on (46,972)
investments and assets and liabilities in foreign
currencies
NET ASSETS, for 381,771 shares outstanding $ 7,616,301
SHARES OUTSTANDING HELD BY: 10,014
General Partners
Limited Partners 371,757
TOTAL SHARES OUTSTANDING 381,771
NET ASSET VALUE and redemption price per share $19.95
($7,616,301 (divided by) 381,771 shares)
Maximum offering price per share $20.03
(100/99.60 of $19.95)
STATEMENT OF OPERATIONS
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)
INVESTMENT INCOME $ 189,368
Interest
EXPENSES
Management fee $ 16,725
Transfer agent fees 8,596
Accounting fees and expenses 22,500
Non-interested trustees' compensation 9
Custodian fees and expenses 11,131
Registration fees 18,725
Audit 7,620
Legal 519
Miscellaneous 164
Total expenses before reductions 85,989
Expense reductions (35,784) 50,205
NET INVESTMENT INCOME 139,163
REALIZED AND UNREALIZED GAIN (LOSS) 796,634
Net realized gain (loss) on foreign currency transactions
Change in net unrealized appreciation (depreciation) on 11,962
assets and liabilities in foreign currencies
NET GAIN (LOSS) 808,596
NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 947,759
FROM OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31,
1995 1994
(UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS
Operations $ 139,163 $ 91,702
Net investment income
Net realized gain (loss) 796,634 147,427
Change in net unrealized appreciation (depreciation) 11,962 19,816
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 947,759 258,945
FROM OPERATIONS
Share transactions 14,510,380 6,054,031
Net proceeds from sales of shares
Cost of shares redeemed (11,346,454) (5,060,920)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 3,163,926 993,111
FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 4,111,685 1,252,056
NET ASSETS
Beginning of period 3,504,616 2,252,560
End of period (including undistributed net investment $ 7,616,301 $ 3,504,616
income of $788,331 and $649,168, respectively)
OTHER INFORMATION
Shares
Sold 750,494 363,818
Redeemed (575,767) (306,656)
Net increase (decrease) 174,727 57,162
</TABLE>
FINANCIAL HIGHLIGHTS - YEN PERFORMANCE PORTFOLIO, L.P.
SIX MONTHS YEARS ENDED DECEMBER 31,
ENDED
JUNE 30, 1995
(UNAUDITED) 1994 1993 1992 1991 1990
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
Net asset value, $ 16.93 $ 15.03 $ 13.29 $ 12.97 $ 11.28 $ 10.06
beginning of period
Income from
Investment
Operations
Net investment .40 D .47 D .24 D .28 D .48 .60
income
Net realized and 2.62 1.43 1.50 .04 1.21 .62
unrealized gain
(loss)
Total from 3.02 1.90 1.74 .32 1.69 1.22
investment
operations
Net asset value, end $ 19.95 $ 16.93 $ 15.03 $ 13.29 $ 12.97 $ 11.28
of period
TOTAL RETURN B, C 17.84% 12.64% 13.09% 2.47% 14.98% 12.13%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of $ 7,616 $ 3,505 $ 2,253 $ 3,801 $ 4,796 $ 4,415
period (000 omitted)
Ratio of expenses to 1.50% A 1.50% 1.50% 1.50% 1.50% 1.50%
average net assets
Ratio of expenses to 2.57% A 2.60% 2.60% 2.60% 2.60% 2.50%
average net assets E E E E E
before expense
reductions
Ratio of net 4.16% A 2.86% 1.56% 2.13% 4.43% 6.34%
investment income
to average net
assets
</TABLE>
A ANNUALIZED
B 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).
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.
E LIMITED IN ACCORDANCE WITH A STATE EXPENSE LIMITATION.
NOTES TO FINANCIAL STATEMENTS
For the period ended June 30, 1995 (Unaudited)
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
2. OPERATING POLICIES -
CONTINUED
FORWARD FOREIGN CURRENCY
CONTRACTS - CONTINUED
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 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, each fund, 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 securities, whose market value is required to be at least
102% of the resale price at the time of purchase. FMR, the funds'
investment adviser, is responsible for determining that the value of these
underlying securities remains at least equal to the resale price.
3. JOINT TRADING ACCOUNT.
The investments in repurchase agreements through the joint trading account
were with entities whose creditworthiness has been reviewed and found
satisfactory by FMR. The repurchase agreements were dated June 30, 1995 and
due July 3, 1995. The maturity values of the joint trading account
investments were $13,802,070 for Fidelity Deutsche Mark Performance
Portfolio, L.P., $1,181,605 for Fidelity Sterling Performance Portfolio,
L.P., and $7,665,927 for Fidelity Yen Performance Portfolio, L.P., all at
6.15%.
The investments in repurchase agreements through the joint trading account
are summarized as follows:
SUMMARY OF JOINT TRADING
Number of dealers or banks 22
Maximum amount with one dealer or bank 17.1%
Aggregate principal amount of agreements $15,088,144,000
Aggregate maturity amount of agreements $15,095,872,000
Aggregate market value of collateral $15,428,420,000
Coupon rates of collateral 0.0% to 13 3/4%
Maturity dates of collateral 7/31/95 to 2/15/25
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 each 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 $63,782, $6,457 and $40,055 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.
Effective January 1, 1995, the Board of Trustees approved a revised
transfer agent contract pursuant to which FSC receives account fees and
asset-based fees that vary according to account size and type of account.
Under the prior transfer agent contract, FSC received fees based on the
type, size, number of accounts and the number of transactions made by
shareholders. FSC pays for typesetting, printing and mailing of all
shareholder reports, except proxy statements.
ACCOUNTING FEE. 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 for these expense reductions in the
event that expenses fall below the limit prior to the end of the fiscal
year. For the period, the the reimbursement reduced expenses by $4,760, $
50,136 and $35,784 for Deutsche Mark, Sterling and Yen Performance
Portfolios, respectively.
6. BENEFICIAL INTEREST.
At the end of the period, FMR was record owner of approximately 14% of the
total outstanding shares of Fidelity Sterling Performance Portfolio, L.P.
Furthermore, one limited partner was record owner of approximately 26% of
the total outstanding shares of Fidelity Yen Performance Portfolio, L.P.
7. COMMITMENTS.
At the period end, each fund had various contracts open which obligate the
funds to take delivery of their respective currencies at specified future
dates. Open contracts were as follows:
FORWARD FOREIGN CURRENCY CONTRACTS
SETTLEMENT UNREALIZED
DATE VALUE GAIN/(LOSS)
CONTRACTS TO BUY
DEUTSCHE MARK PERFORMANCE PORTFOLIO, L.P.
19,063,783 DEM 9/1/95 $13,835,389 $ 156,680
(Payable amount $13,678,709)
STERLING PERFORMANCE PORTFOLIO, L.P.
710,721 GBP 9/1/95 $1,131,639 $ (9,704)
(Payable amount $1,141,343)
YEN PERFORMANCE PORTFOLIO, L.P.
633,007,663 JPY 9/1/95 $7,542,504 $ (46,972)
(Payable amount $7,589,476)
TO CALL FIDELITY
FOR FUND INFORMATION AND QUOTES
The Fidelity Telephone Connection offers you special automated telephone
services for quotes and balances. The services are easy to use,
confidential and quick. All you need is a Touch Tone telephone.
YOUR PERSONAL IDENTIFICATION NUMBER
(PIN)
The first time you call one of our automated telephone services, we'll ask
you
to set up your Personal Identification
Number (PIN). The PIN assures that
only you have automated telephone
access to your account information.
Please have your Customer Number
(T-account #) handy when you call -
you'll need it to establish your PIN. If
you would ever like to change your PIN, just choose the "Change your
Personal
Identification Number" option when
you call. If you forget your PIN, please
call a Fidelity representative at 1-800-
544-6666 for assistance.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND QUOTES*
1-800-544-8544
Just make a selection from this record-ed menu:
PRESS
For quotes on funds you own.
1.
For an individual fund quote.
2.
For the ten most frequently
requested Fidelity fund quotes.
3.
For quotes on Fidelity Select
Portfolios(registered trademark).
4.
To change your Personal
Identification Number (PIN).
5.
To speak with a Fidelity
representative.
6.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND ACCOUNT
BALANCES 1-800-544-7544
Just make a selection from this record-
ed menu:
PRESS
For balances on funds you own.
1.
For your most recent fund activity
(purchases, redemptions, and
dividends).
2.
To change your Personal
Identification Number (PIN).
3.
To speak with a Fidelity
representative.
4.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD AND
RETURN WILL
VARY AND, EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS
MEANS THAT
YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO
ASSURANCE THAT
MONEY MARKET FUNDS WILL BE ABLE TO MAINTAIN A STABLE $1 SHARE PRICE; AN
INVESTMENT IN
A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.
TOTAL
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE, REINVESTMENT OF
DIVIDENDS
AND CAPITAL GAINS, AND THE EFFECTS OF ANY SALES CHARGES.
TO VISIT FIDELITY
For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 East Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19100 Von Karman Avenue
Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
811 Wilshire Boulevard
Los Angeles, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
455 Market Street
San Francisco, CA
1400 Civic Drive
Walnut Creek, CA
6300 Canoga Avenue
Woodland Hills, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
185 Asylum Street
Hartford, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
DELAWARE
222 Delaware Avenue
Wilmington, DE
FLORIDA
4400 N. Federal Highway
Boca Raton, FL
90 Alhambra Plaza
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
4001 Tamiami Trail, North
Naples, FL
1907 West State Road 434
Orlando, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
2000 66th Street, North
St. Petersburg, FL
GEORGIA
3525 Piedmont Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
HAWAII
700 Bishop Street
Honolulu, HI
ILLINOIS
215 East Erie Street
Chicago, IL
One North Franklin
Chicago, IL
540 Lake Cook Road
Deerfield, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
LOUISIANA
201 St. Charles Avenue
New Orleans, LA
MAINE
3 Canal Plaza
Portland, ME
MARYLAND
7401 Wisconsin Avenue
Bethesda, MD
1 West Pennsylvania Ave.
Towson, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
26955 Northwestern Hwy.
Southfield, MI
MINNESOTA
7600 France Avenue South
Edina, MN
MISSOURI
700 West 47th Street
Kansas City, MO
8885 Ladue Road
Ladue, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
60B South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
505 Millburn Avenue
Short Hills, NJ
NEW YORK
1050 Franklin Avenue
Garden City, NY
999 Walt Whitman Road
Melville, L.I., NY
1271 Avenue of the
Americas
New York, NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
4611 Sharon Road
Charlotte, NC
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
1903 East Ninth Street
Cleveland, OH
OREGON
121 S.W. Morrison Street
Portland, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
5100 Poplar Avenue
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
7001 Preston Road
Dallas, TX
1155 Dairy Ashford
Houston, TX
2701 Drexel Drive
Houston, TX
1010 Lamar Street
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
UTAH
215 South State Street
Salt Lake City, UT
VERMONT
199 Main Street
Burlington, VT
VIRGINIA
8180 Greensboro Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
1001 Fourth Avenue
Seattle, WA
WASHINGTON, DC
1775 K Street, N.W.
Washington, DC
WISCONSIN
222 East Wisconsin Avenue
Milwaukee, WI
INVESTMENT ADVISER
Fidelity Management &
Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Arthur S. Loring, Secretary
Stephen P. Jonas, 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 Portfolio
Global Bond Fund
Government Securities Fund
Intermediate Bond Fund
Investment Grade Bond Fund
Mortgage Securities Portfolio
New Markets Income Fund
Short-Intermediate Government Fund
Short-Term Bond Portfolio
Short-Term World Income 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 Income 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