(2_FIDELITY_LOGOS)FIDELITY
FOREIGN CURRENCY
FUNDS
SEMIANNUAL REPORT
JUNE 30, 1996
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 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.
Please be advised that this fund is structured as a Limited Partnership.
Tax information for Limited Partnerships is reported on a Form K-1, not a
Form 1099. You should expect to receive a K-1 tax form from Fidelity by
March 31, 1997.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
Although stocks have managed to post solid returns through the first six
months of 1996, signs of strength in the economy have led to inflation
fears, causing some uncertainty in bond markets so far this year. In 1995,
both stock and bond markets posted strong results, while the year before,
stocks posted below-average returns and bonds had one of the worst years in
history.
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. 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 JUNE 30, 1996 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND
Deutsche Mark Performance Portfolio, -4.64% -7.05% 52.11% 72.80%
L.P.
Deutsche Mark Performance Portfolio, -5.02% -7.42% 51.50% 72.11%
L.P. (incl. maximum 0.4% sales
charge)
German Deutsche mark -5.67% -9.38% 18.79% 20.62%
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 those of
the German deutsche mark, which 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 4:00 p.m. Eastern time from a pool of 500 banking
institutions which actively trade in the German deutsche mark.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JUNE 30, 1996 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Deutsche Mark Performance Portfolio, L.P. -7.05% 8.75% 8.60%
Deutsche Mark Performance Portfolio, L.P. -7.42% 8.66% 8.54%
(incl. maximum 0.4% sales charge)
German Deutsche mark -9.38% 3.50% 2.87%
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
IMAHDR PRASUN SHR__CHT 19960630 19960710 102505 S00000000000001
Deutsche Mark Portfolio Deutsche Mark
00497 QT001
1989/11/16 9960.00 10000.00
1989/11/30 10308.60 10322.20
1989/12/31 10896.24 10877.85
1990/01/31 10995.84 10913.35
1990/02/28 10916.16 10772.70
1990/03/31 11075.52 10855.37
1990/04/30 11234.88 10949.09
1990/05/31 11175.12 10839.38
1990/06/30 11483.88 11073.04
1990/07/31 12081.48 11587.27
1990/08/31 12230.88 11668.15
1990/09/30 12370.32 11735.16
1990/10/31 12848.40 12111.57
1990/11/30 13097.40 12279.80
1990/12/31 13216.92 12330.85
1991/01/31 13446.00 12452.77
1991/02/28 13107.36 12058.36
1991/03/31 11802.60 10798.00
1991/04/30 11872.32 10775.86
1991/05/31 11683.08 10550.20
1991/06/30 11314.56 10154.06
1991/07/31 11832.48 10544.15
1991/08/31 11882.28 10526.04
1991/09/30 12539.64 11045.11
1991/10/31 12569.52 11000.18
1991/11/30 12987.84 11311.44
1991/12/31 13993.80 12125.95
1992/01/31 13266.72 11414.65
1992/02/29 13117.32 11219.65
1992/03/31 13187.04 11192.33
1992/04/30 13236.84 11158.37
1992/05/31 13645.20 11439.50
1992/06/30 14521.68 12083.72
1992/07/31 15079.44 12471.35
1992/08/31 15955.92 13111.59
1992/09/30 16025.64 12991.17
1992/10/31 14730.84 11920.78
1992/11/30 14342.40 11558.14
1992/12/31 14143.20 11347.73
1993/01/31 14302.56 11413.23
1993/02/28 14083.44 11178.72
1993/03/31 14501.76 11445.20
1993/04/30 14790.60 11601.89
1993/05/31 14830.44 11583.62
1993/06/30 13884.24 10785.34
1993/07/31 13675.08 10559.29
1993/08/31 14262.72 10969.34
1993/09/30 14691.00 11265.01
1993/10/31 14292.60 10907.53
1993/11/30 14103.36 10721.82
1993/12/31 13973.88 10579.33
1994/01/31 14053.56 10603.13
1994/02/28 14362.32 10790.40
1994/03/31 14681.04 10991.63
1994/04/30 14900.16 11117.90
1994/05/31 15009.72 11168.54
1994/06/30 15617.28 11583.62
1994/07/31 15696.96 11616.55
1994/08/31 15756.72 11627.57
1994/09/30 16105.32 11852.40
1994/10/31 16653.12 12228.35
1994/11/30 16015.68 11717.96
1994/12/31 16264.68 11867.70
1995/01/31 16573.44 11991.52
1995/02/28 17300.52 12566.80
1995/03/31 18475.80 13373.82
1995/04/30 18376.20 13259.07
1995/05/31 18047.52 12998.52
1995/06/30 18515.64 13310.89
1995/07/31 18505.68 13265.76
1995/08/31 17529.60 12526.57
1995/09/30 18077.40 12879.25
1995/10/31 18356.28 13053.88
1995/11/30 17908.08 12712.75
1995/12/31 18047.52 12787.90
1996/01/31 17469.84 12345.75
1996/02/29 17679.00 12471.35
1996/03/31 17679.00 12451.92
1996/04/30 17081.40 12005.22
1996/05/31 17210.88 12074.59
1996/06/28 17210.88 12062.32
IMATRL PRASUN SHR__CHT 19960630 19960710 102509 R00000000000083
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Deutsche Mark Performance Portfolio, L.P. on November
16, 1989, when the fund started, and the maximum 0.4% sales charge was
paid. As the chart shows, by June 30, 1996, the value of the investment
would have grown to $17,211 - a 72.11% increase on the 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 $12,062 - a 20.62%
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 JUNE 30, 1996 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND
Sterling Performance Portfolio, L.P. 2.47% 2.34% 26.30% 57.50%
Sterling Performance Portfolio, L.P. 2.06% 1.93% 25.80% 56.87%
(incl. maximum 0.4% sales
charge)
British pound sterling 0.10% -2.64% -4.27% -1.74%
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 those of
the British pound sterling, which 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 4:00 p.m. Eastern time from a pool of 500 banking
institutions which actively trade in the British pound sterling.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JUNE 30, 1996 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Sterling Performance Portfolio, L.P. 2.34% 4.78% 7.10%
Sterling Performance Portfolio, L.P. 1.93% 4.70% 7.03%
(incl. maximum 0.4% sales
charge)
British pound sterling -2.64% -0.87% -0.26%
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
IMAHDR PRASUN SHR__CHT 19960630 19960710 105617 S00000000000001
Sterling Portfolio British Pound Sterling
00498 QT002
1989/11/16 9960.00 10000.00
1989/11/30 9930.12 9938.77
1989/12/31 10278.72 10201.45
1990/01/31 10806.60 10627.94
1990/02/28 10896.24 10611.90
1990/03/31 10826.52 10416.32
1990/04/30 10906.20 10377.05
1990/05/31 11284.68 10624.37
1990/06/30 11882.28 11070.30
1990/07/31 12798.60 11796.50
1990/08/31 13087.44 11965.97
1990/09/30 13157.16 11876.17
1990/10/31 13804.56 12298.43
1990/11/30 13963.92 12305.60
1990/12/31 14033.64 12238.98
1991/01/31 14392.20 12448.38
1991/02/28 14143.20 12103.25
1991/03/31 13007.76 11018.28
1991/04/30 13077.48 10961.04
1991/05/31 12918.12 10741.56
1991/06/30 12420.12 10264.31
1991/07/31 13017.72 10669.14
1991/08/31 13077.48 10640.44
1991/09/30 13714.92 11076.12
1991/10/31 13734.84 11010.61
1991/11/30 14033.64 11191.65
1991/12/31 14910.12 11820.73
1992/01/31 14392.20 11311.65
1992/02/29 14252.76 11128.69
1992/03/31 14163.12 10985.77
1992/04/30 14621.28 11255.33
1992/05/31 15129.24 11572.21
1992/06/30 15876.24 12064.04
1992/07/31 16145.16 12198.88
1992/08/31 16752.72 12584.49
1992/09/30 15358.32 11307.61
1992/10/31 13426.08 9855.21
1992/11/30 13147.20 9599.64
1992/12/31 13107.36 9561.93
1993/01/31 13027.68 9409.84
1993/02/28 12499.80 9017.09
1993/03/31 13346.40 9593.82
1993/04/30 13894.20 9959.09
1993/05/31 13834.44 9884.45
1993/06/30 13266.72 9444.94
1993/07/31 13236.84 9390.30
1993/08/31 13336.44 9437.90
1993/09/30 13446.00 9478.89
1993/10/31 13356.36 9377.78
1993/11/30 13455.96 9407.04
1993/12/31 13406.16 9350.07
1994/01/31 13704.96 9531.70
1994/02/28 13565.52 9405.65
1994/03/31 13585.44 9390.30
1994/04/30 13944.00 9605.46
1994/05/31 13914.12 9561.93
1994/06/30 14262.72 9773.04
1994/07/31 14292.60 9773.04
1994/08/31 14252.76 9713.06
1994/09/30 14681.04 9977.93
1994/10/31 15278.64 10356.68
1994/11/30 14681.04 9910.76
1994/12/31 14730.84 9915.41
1995/01/31 14910.12 9924.74
1995/02/28 14989.80 10017.41
1995/03/31 15428.04 10269.31
1995/04/30 15418.08 10204.74
1995/05/31 15208.92 10050.81
1995/06/30 15328.44 10092.47
1995/07/31 15408.12 10098.92
1995/08/31 15039.60 9810.91
1995/09/30 15418.08 10020.58
1995/10/31 15467.88 10004.74
1995/11/30 15069.48 9699.66
1995/12/31 15308.52 9817.00
1996/01/31 14999.76 9573.50
1996/02/29 15238.80 9693.72
1996/03/31 15258.72 9662.65
1996/04/30 15119.28 9541.21
1996/05/31 15617.28 9819.72
1996/06/28 15687.00 9826.37
IMATRL PRASUN SHR__CHT 19960630 19960710 105620 R00000000000083
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Sterling Performance Portfolio, L.P. on November 16,
1989, when the fund started, and the maximum 0.4% sales charge was paid. As
the chart shows, by June 30, 1996, the value of the investment would have
grown to $15,687 - a 56.87% increase on the 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 $9,826 - a 1.74%
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 JUNE 30, 1996 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND
Yen Performance Portfolio, L.P. -6.07% -23.16% 33.89% 53.30%
Yen Performance Portfolio, L.P. -6.44% -23.47% 33.35% 52.69%
(incl. maximum 0.4% sales
charge)
Japanese yen -5.75% -22.84% 25.32% 31.06%
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 those of
the Japanese yen, which 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
4:00 p.m. Eastern time from a pool of 500 banking institutions which
actively trade in the Japanese yen.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JUNE 30, 1996 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Yen Performance Portfolio, L.P. -23.16% 6.01% 6.66%
Yen Performance Portfolio, L.P. -23.47% 5.93% 6.59%
(incl. maximum 0.4% sales
charge)
Japanese yen -22.84% 4.62% 4.17%
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
IMAHDR PRASUN SHR__CHT 19960630 19960710 111507 S00000000000001
Yen Portfolio Japanese Yen
00499 QT003
1989/11/16 9960.00 10000.00
1989/11/30 10049.64 10066.51
1989/12/31 10019.76 9991.66
1990/01/31 10029.72 9954.31
1990/02/28 9760.80 9639.96
1990/03/31 9232.92 9079.89
1990/04/30 9252.84 9048.46
1990/05/31 9701.04 9452.99
1990/06/30 9750.84 9452.99
1990/07/31 10209.00 9858.75
1990/08/31 10398.24 9998.61
1990/09/30 10846.44 10381.23
1990/10/31 11593.44 11051.50
1990/11/30 11463.96 10851.32
1990/12/31 11234.88 10618.91
1991/01/31 11653.20 10952.16
1991/02/28 11543.64 10808.09
1991/03/31 10936.08 10182.72
1991/04/30 11414.16 10560.41
1991/05/31 11284.68 10393.99
1991/06/30 11404.20 10458.25
1991/07/31 11473.92 10464.34
1991/08/31 11583.48 10507.93
1991/09/30 11981.88 10814.59
1991/10/31 12230.88 10996.56
1991/11/30 12370.32 11058.30
1991/12/31 12918.12 11517.14
1992/01/31 12878.28 11431.07
1992/02/29 12529.68 11100.13
1992/03/31 12270.72 10830.89
1992/04/30 12260.76 10790.24
1992/05/31 12778.68 11259.20
1992/06/30 13017.72 11447.45
1992/07/31 12878.28 11312.35
1992/08/31 13336.44 11684.68
1992/09/30 13724.88 11995.66
1992/10/31 13366.32 11653.43
1992/11/30 13246.80 11527.30
1992/12/31 13236.84 11516.22
1993/01/31 13266.72 11534.70
1993/02/28 13973.88 12164.13
1993/03/31 14422.08 12529.85
1993/04/30 14920.08 12941.49
1993/05/31 15477.84 13431.11
1993/06/30 15547.56 13443.67
1993/07/31 15906.12 13739.13
1993/08/31 15916.08 13728.64
1993/09/30 15726.84 13541.16
1993/10/31 15398.16 13245.51
1993/11/30 15348.36 13182.36
1993/12/31 14969.88 12857.02
1994/01/31 15398.16 13227.23
1994/02/28 16005.72 13747.01
1994/03/31 16314.48 14006.82
1994/04/30 16503.72 14161.33
1994/05/31 16015.68 13718.16
1994/06/30 17041.56 14589.55
1994/07/31 16802.52 14392.39
1994/08/31 16752.72 14349.30
1994/09/30 16941.96 14501.26
1994/10/31 17340.36 14836.45
1994/11/30 17011.68 14537.92
1994/12/31 16862.28 14414.04
1995/01/31 16882.20 14589.55
1995/02/28 17400.12 14859.45
1995/03/31 19471.80 16227.99
1995/04/30 20019.60 17076.01
1995/05/31 19920.00 17011.36
1995/06/30 19870.20 16985.23
1995/07/31 19003.68 16270.23
1995/08/31 17240.76 14754.23
1995/09/30 16892.16 14416.93
1995/10/31 16503.72 14087.79
1995/11/30 16493.76 14085.03
1995/12/31 16254.72 13905.22
1996/01/31 15696.96 13424.84
1996/02/29 15965.88 13658.21
1996/03/31 15677.04 13402.31
1996/04/30 15945.96 13673.15
1996/05/31 15497.76 13297.57
1996/06/28 15268.68 13106.06
IMATRL PRASUN SHR__CHT 19960630 19960710 111510 R00000000000083
$10,000 OVER LIFE OF FUND: Let's say hypothecially that $10,000 was
invested in Fidelity Yen Performance Portfolio, L.P. on November 16, 1989,
when the fund started, and the maximum 0.4% sales charge was paid. As the
chart shows, by June 30, 1996, the value of the investment would have grown
to $15,269 - a 52.69% increase on the initial investment. For comparison,
look at how the Japanese yen did over the same period. The same $10,000
investment would have grown to $13,106 - a 31.06% 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 six months ended June 30, 1996, the Deutsche Mark fund returned
- -4.64%, compared to a -5.67% return in the value of the deutsche mark
relative to the U.S. dollar; the Sterling fund rose 2.47% compared to a
0.10% return in the pound; and the Yen fund fell -6.07%, compared to a
- -5.75% return in the yen. For the 12-month period ended June 30, 1996, the
Deutsche Mark fund returned -7.05%, compared to a -9.38% return in the
value of the deutshe mark relative to the U.S. dollar; the Sterling fund
rose 2.34% compared to a -2.64% return in the pound; and the Yen fund
dropped -23.16%, compared to a -22.84% return in the yen.
Q. FOR MORE THAN A YEAR THE DOLLAR HAS CONTINUED TO STRENGTHEN RELATIVE TO
THE YEN AND THE DEUTSHE MARK. WHY?
A. The strength in the dollar has been largely due to the strength of the
U.S. economy. Early in the year the economy was stumbling and the Federal
Reserve Board cut interest rates to promote growth. At that time, the
expectation was that the Fed would have to cut rates at least one more time
in order to get the economy moving. But then in February, employment growth
was much stronger than expected, and each subsequent job growth report
throughout the period was stronger than anticipated. The strength of the
U.S. economy has had a direct and powerful impact on the strength of the
currency during the period.
Q. WHAT OTHER FACTORS HAVE KEPT THE DOLLAR STRONG?
A. Besides internal forces within the U.S. economy, the dollar has
benefited from the actions of other governments. Because Japanese
authorities were uneasy about their nation's banking system, they
implemented fiscal and monetary policy - resulting in a weaker currency and
lower interest rates - to help stimulate the economy. It was a similar
story with Germany. Germany wanted a weaker currency to boost its economic
growth by keeping exports competitive. The result of these actions in
Germany and Japan helped re-build confidence in the U.S. dollar and
re-established its status as the world's dominant trading currency and
leading reserve currency.
Q. GETTING BACK TO JAPAN FOR A MOMENT, WHAT SPECIFIC FACTORS HAVE HURT THE
YEN?
A. There were two major factors. The first is the continuing improvement in
the trade balance between the U.S. and Japan and the fact that Japan's
trade surplus has declined significantly during the past six months. Japan
has made an effort to open its economy and has moved some of its
manufacturing abroad, which has put them in the position of importing goods
they've produced. The second reason is that the Bank of Japan has not
increased interest rates as the market had expected it to. This led to
disappointment with regard to Japan's economy and its currency.
Q. WHAT ABOUT THE DEUTSHE MARK?
A. Germany's economy was expected to perform better than it did, leading to
underperformance of the currency. In fact, the Bundesbank, Germany's
central bank, has lowered its rates in order to encourage economic
development there.
Q. AND STERLING . . .
A. Monetary policy in the U.K. was in line with that of the U.S. Three
interest rate cuts in the past six months in the U.K. mirrored the two cuts
in U.S. rates during the same time period. The short-term rates of the U.S.
and U.K. are pretty much in line.
Q. WHAT HAVE BEEN THE MAJOR THEMES IN THE CURRENCY MARKETS?
A. In the past couple of months, some market watchers believed that the
currency markets reached a natural point of fair value. During the most
recent period, there were sharp declines in volatility. Overall inflation
rates for the major economies are low, and there's not a lot of disparity
among them. Of course, this can't go on indefinitely and could be disrupted
at any time.
Q. WHAT'S YOUR OUTLOOK FOR THE NEXT SIX MONTHS?
A. The dollar is not likely to increase in value as dramatically as it did
for the past six and twelve month periods. Its strength will depend on the
strength of the U.S. economy and, to some extent, on the result of the 1996
presidential election.
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 June 30, 1996,
more than $6.2 million in the
Fidelity Deutsche Mark
Portfolio; more than $1.1
million in the Fidelity Sterling
Portfolio; more than $2.4
million in the Fidelity Yen
Portfolio
MANAGER: Jacques Perold,
since October 1995; joined
Fidelity in 1986
(checkmark)
JACQUES PEROLD ON OWNING
FOREIGN CURRENCY FUNDS FOR
PORTFOLIO DIVERSIFICATION
"In general, foreign currency
funds perform best when the
U.S. dollar is weak. So, if the
dollar declines against other
currencies, the funds'
investments in these
currencies protect the
shareholders' purchasing
power of goods from these
countries.
"Foreign currency funds tend
to perform better when the
U.S. markets and overall
economy are performing
poorly, and perform poorly
when these markets do well.
The past year has been
terrific for stocks, but not very
good for foreign currencies.
"However, since everything
moves in cycles, currency
funds can offer protection
against a weak dollar and a
falling stock market. It may be
wise to include them in a
well-diversified portfolio."
FIDELITY DEUTSCHE MARK PERFORMANCE PORTFOLIO, L.P.
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1996 (UNAUDITED)
ASSETS
Investment in repurchase agreements in a joint $ 6,287,000
trading account
Cash 396
Unrealized appreciation on foreign currency contracts 20,360
Receivable for closed foreign currency contracts 187
Receivable from investment adviser for expense 4,863
reductions
TOTAL ASSETS 6,312,806
LIABILITIES
Unrealized depreciation on foreign currency contracts $ 150
Payable for fund shares redeemed 46,908
Accrued management fee 2,858
Other payables and accrued expenses 17,261
TOTAL LIABILITIES 67,177
NET ASSETS $ 6,245,629
Net Assets consist of:
Paid in capital $ 977,530
Undistributed net investment income 2,691,825
Accumulated undistributed net realized gain (loss) on 2,556,064
investments and foreign currency transactions
Net unrealized appreciation (depreciation) on 20,210
investments and assets and liabilities in foreign
currencies
NET ASSETS, for 361,409 shares outstanding $ 6,245,629
SHARES OUTSTANDING HELD BY: 10,014
General Partners
Limited Partners 351,395
TOTAL SHARES OUTSTANDING 361,409
NET ASSET VALUE and redemption price per share $17.28
($6,245,629 (divided by) 361,409 shares)
Maximum offering price per share (100/99.60 of $17.28) $17.35
STATEMENT OF OPERATIONS
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
INVESTMENT INCOME 239,026
Interest
EXPENSES
Management fee $ 21,477
Transfer agent fees 13,874
Accounting fees and expenses 30,000
Non-interested trustees' compensation 20
Custodian fees and expenses 6,078
Registration fees 16,677
Audit 7,006
Legal 728
Miscellaneous 213
Total expenses before reductions 96,073
Expense reductions (32,177) 63,896
NET INVESTMENT INCOME 175,130
REALIZED AND UNREALIZED GAIN (LOSS) (692,378)
Net realized gain (loss) on foreign currency transactions
Change in net unrealized appreciation (depreciation) on 41,225
assets and liabilities in foreign currencies
NET GAIN (LOSS) (651,153)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ (476,023)
FROM OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31,
1996 (UNAUDITED) 1995
INCREASE (DECREASE) IN NET ASSETS
Operations $ 175,130 $ 589,199
Net investment income
Net realized gain (loss) (692,378) 503,286
Change in net unrealized appreciation (depreciation) 41,225 (37,977)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING (476,023) 1,054,508
FROM OPERATIONS
Share transactions 796,526 28,567,208
Net proceeds from sales of shares
Cost of shares redeemed (5,606,347) (26,607,731)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING (4,809,821) 1,959,477
FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS (5,285,844) 3,013,985
NET ASSETS
Beginning of period 11,531,473 8,517,488
End of period (including undistributed net investment $ 6,245,629 $ 11,531,473
income of $2,691,825 and $2,516,695, respectively)
OTHER INFORMATION
Shares
Sold 44,962 1,581,160
Redeemed (319,799) (1,466,474)
Net increase (decrease) (274,837) 114,686
</TABLE>
FINANCIAL HIGHLIGHTS - DEUTSCHE MARK PERFORMANCE PORTFOLIO, L.P.
SIX MONTHS YEARS ENDED DECEMBER 31,
ENDED
JUNE 30, 1996
(UNAUDITED) 1995 1994 1993 1992 1991
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE
DATA
Net asset value, $ 18.12 $ 16.33 $ 14.03 $ 14.20 $ 14.05 $ 13.27
beginning of period
Income from Investment
Operations
Net investment income .36 D .78 D .43 D .23 D .34 D .55 D
Net realized and (1.20) 1.01 1.87 (.40) (.19) .23
unrealized gain
(loss)
Total from investment (.84) 1.79 2.30 (.17) .15 .78
operations
Net asset value, end $ 17.28 $ 18.12 $ 16.33 $ 14.03 $ 14.20 $ 14.05
of period
TOTAL RETURN B, C (4.64)% 10.96% 16.39% (1.20)% 1.07% 5.88%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 6,246 $ 11,531 $ 8,517 $ 5,777 $ 9,007 $ 24,070
(000 omitted)
Ratio of expenses to 1.50% A, 1.50% 1.50% 1.50% 1.29% 1.50%
average net assets E E E E E
Ratio of net investment 4.10% A 4.31% 2.81% 1.62% 2.38% 4.38%
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 DURING THE PERIOD.
E FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE
BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
FIDELITY STERLING PERFORMANCE PORTFOLIO, L.P.
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1996 (UNAUDITED)
ASSETS
Investment in repurchase agreements in a joint $ 1,115,000
trading account
Cash 596
Unrealized appreciation on foreign currency contracts 10,316
Receivable for closed foreign currency contracts 79
TOTAL ASSETS 1,125,991
LIABILITIES
Unrealized depreciation on foreign currency contracts $ 117
Accrued management fee 410
Other payables and accrued expenses 17,111
TOTAL LIABILITIES 17,638
NET ASSETS $ 1,108,353
Net Assets consist of:
Undistributed net investment income $ 910,958
Accumulated undistributed net realized gain (loss) on 791,051
investments and foreign currency transactions
Net unrealized appreciation (depreciation) on 10,199
investments and assets and liabilities in foreign
currencies
Excess of amounts paid on value of shares redeemed (603,855)
over paid in capital
NET ASSETS, for 70,387 shares outstanding $ 1,108,353
SHARES OUTSTANDING HELD BY: 10,014
General Partners
Limited Partners 60,373
TOTAL SHARES OUTSTANDING 70,387
NET ASSET VALUE and redemption price per share $15.75
($1,108,353 (divided by) 70,387 shares)
Maximum offering price per share (100/99.60 of $15.75) $15.81
STATEMENT OF OPERATIONS
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
INVESTMENT INCOME $ 26,785
Interest
EXPENSES
Management fee $ 2,467
Transfer agent fees 1,748
Accounting fees and expenses 30,000
Non-interested trustees' compensation 2
Custodian fees and expenses 6,824
Registration fees 16,210
Audit 6,026
Legal 707
Miscellaneous 128
Total expenses before reductions 64,112
Expense reductions (56,774) 7,338
NET INVESTMENT INCOME 19,447
REALIZED AND UNREALIZED GAIN (LOSS) 3,440
Net realized gain (loss) on foreign currency transactions
Change in net unrealized appreciation (depreciation) on (754)
assets and liabilities in foreign currencies
NET GAIN (LOSS) 2,686
NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 22,133
FROM OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31,
1996 (UNAUDITED) 1995
INCREASE (DECREASE) IN NET ASSETS
Operations $ 19,447 $ 83,737
Net investment income
Net realized gain (loss) 3,440 26,105
Change in net unrealized appreciation (depreciation) (754) 21,240
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 22,133 131,082
FROM OPERATIONS
Share transactions 316,578 1,792,743
Net proceeds from sales of shares
Cost of shares redeemed (251,392) (4,246,010)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 65,186 (2,453,267)
FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 87,319 (2,322,185)
NET ASSETS
Beginning of period 1,021,034 3,343,219
End of period (including undistributed net investment $ 1,108,353 $ 1,021,034
income of $910,958 and $891,511, respectively)
OTHER INFORMATION
Shares
Sold 20,424 117,685
Redeemed (16,484) (277,244)
Net increase (decrease) 3,940 (159,559)
</TABLE>
FINANCIAL HIGHLIGHTS - STERLING PERFORMANCE PORTFOLIO, L.P.
SIX MONTHS YEARS ENDED DECEMBER 31,
ENDED
JUNE 30, 1996
(UNAUDITED) 1995 1994 1993 1992 1991
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE
DATA
Net asset value, $ 15.37 $ 14.79 $ 13.46 $ 13.16 $ 14.97 $ 14.09
beginning of period
Income from Investment
Operations
Net investment income .30 D .68 D .38 D .22 D .34 D .55 D
Net realized and .08 (.10) E .95 .08 (2.15) .33
unrealized gain (loss)
Total from investment .38 .58 1.33 .30 (1.81) .88
operations
Net asset value, end $ 15.75 $ 15.37 $ 14.79 $ 13.46 $ 13.16 $ 14.97
of period
TOTAL RETURN B, C 2.47% 3.92% 9.88% 2.28% (12.09)% 6.25%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 1,108 $ 1,021 $ 3,343 $ 3,684 $ 1,715 $ 10,857
(000 omitted)
Ratio of expenses to 1.50% A, 1.50% 1.50% 1.50% 1.50% 1.50%
average net assets F F F F F F
Ratio of net investment 3.98% A 4.44% 2.69% 1.61% 2.27% 4.08%
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 DURING THE PERIOD.
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.
F FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE
BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
FIDELITY YEN PERFORMANCE PORTFOLIO, L.P.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
JUNE 30, 1996 (UNAUDITED)
ASSETS
Investment in repurchase agreements in a joint $ 2,525,000
trading account
Cash 188
Receivable from investment adviser for expense 5,808
reductions
TOTAL ASSETS 2,530,996
LIABILITIES
Unrealized depreciation on foreign currency contracts $ 51,246
Payable for closed foreign currency contracts 35,773
Accrued management fee 1,189
Other payables and accrued expenses 16,127
TOTAL LIABILITIES 104,335
NET ASSETS $ 2,426,661
Net Assets consist of:
Paid in capital $ 369,197
Undistributed net investment income 932,147
Accumulated undistributed net realized gain (loss) on 1,176,563
investments and foreign currency transactions
Net unrealized appreciation (depreciation) on (51,246)
investments and assets and liabilities in foreign
currencies
NET ASSETS, for 158,319 shares outstanding $ 2,426,661
SHARES OUTSTANDING HELD BY: 10,014
General Partners
Limited Partners 148,305
TOTAL SHARES OUTSTANDING 158,319
NET ASSET VALUE and redemption price per share $15.33
($2,426,661 (divided by) 158,319 shares)
Maximum offering price per share (100/99.60 of $15.33) $15.39
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
INVESTMENT INCOME $ 79,469
Interest
EXPENSES
Management fee $ 7,109
Transfer agent fees 5,682
Accounting fees and expenses 30,000
Custodian fees and expenses 6,767
Registration fees 17,475
Audit 6,631
Legal 711
Miscellaneous 151
Total expenses before reductions 74,526
Expense reductions (53,656) 20,870
NET INVESTMENT INCOME 58,599
REALIZED AND UNREALIZED GAIN (LOSS) (273,577)
Net realized gain (loss) on foreign currency transactions
Change in net unrealized appreciation (depreciation) on 8,065
assets and liabilities in foreign currencies
NET GAIN (LOSS) (265,512)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ (206,913)
FROM OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31,
1996 (UNAUDITED) 1995
INCREASE (DECREASE) IN NET ASSETS
Operations $ 58,599 $ 224,380
Net investment income
Net realized gain (loss) (273,577) (115,000)
Change in net unrealized appreciation (depreciation) 8,065 (377)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING (206,913) 109,003
FROM OPERATIONS
Share transactions 3,679,005 15,772,636
Net proceeds from sales of shares
Cost of shares redeemed (3,938,898) (16,492,788)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING (259,893) (720,152)
FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS (466,806) (611,149)
NET ASSETS
Beginning of period 2,893,467 3,504,616
End of period (including undistributed net investment $ 2,426,661 $ 2,893,467
income of $932,147 and $873,548, respectively)
OTHER INFORMATION
Shares
Sold 234,237 823,652
Redeemed (253,178) (853,436)
Net increase (decrease) (18,941) (29,784)
</TABLE>
FINANCIAL HIGHLIGHTS - YEN PERFORMANCE PORTFOLIO, L.P.
SIX MONTHS YEARS ENDED DECEMBER 31,
ENDED
JUNE 30, 1996
(UNAUDITED) 1995 1994 1993 1992 1991
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE
DATA
Net asset value, $ 16.32 $ 16.93 $ 15.03 $ 13.29 $ 12.97 $ 11.28
beginning of period
Income from Investment
Operations
Net investment .33 D .82 D .47 D .24 D .28 D .48
income
Net realized and (1.32) (1.43) 1.43 1.50 .04 1.21
unrealized gain
(loss)
Total from investment (.99) (.61) 1.90 1.74 .32 1.69
operations
Net asset value, end $ 15.33 $ 16.32 $ 16.93 $ 15.03 $ 13.29 $ 12.97
of period
TOTAL RETURN B, C (6.07)% (3.60)% 12.64% 13.09% 2.47% 14.98%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of $ 2,427 $ 2,893 $ 3,505 $ 2,253 $ 3,801 $ 4,796
period (000 omitted)
Ratio of expenses to 1.50% A, 1.50% 1.50% 1.50% 1.50% 1.50%
average net assets E E E E E E
Ratio of expenses to 1.48% A, 1.50% 1.50% 1.50% 1.50% 1.50%
average net assets F
after expense
reductions
Ratio of net investment 4.15% A 4.38% 2.86% 1.56% 2.13% 4.43%
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 DURING THE PERIOD.
E FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE
BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
F FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES (SEE NOTE 5 OF
NOTES TO FINANCIAL STATEMENTS).
NOTES TO FINANCIAL STATEMENTS
For the period ended June 30, 1996 (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 financial statements have been
prepared in conformity with generally accepted accounting principles which
permit management to make certain estimates and assumptions at the date of
the financial statements. 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, 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 for U.S. Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
Securities are transferred to an account of the funds, or to the Joint
Trading Account, at a bank custodian. The securities are marked-to-market
daily and maintained at a value at least equal to the principal amount of
the repurchase agreement (including accrued interest). FMR, the funds'
investment adviser, is responsible for determining that the value of the
underlying securities remains in accordance with the market value
requirements stated above.
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 $6,289,862
for Fidelity Deutsche Mark Performance Portfolio, L.P., $1,115,507 for
Fidelity Sterling Performance Portfolio, L.P., and $2,526,149 for Fidelity
Yen Performance Portfolio, L.P., all at 5.46 %. The investments in
repurchase agreements through the joint trading account are summarized as
follows:
SUMMARY OF JOINT TRADING
DATED JUNE 28, 1996, DUE JULY 1, 1996
Number of dealers or banks 23
Maximum amount with one dealer or bank 17.5%
Aggregate principal amount of agreements $18,492,261,000
Aggregate maturity amount of agreements $18,500,678,000
Aggregate market value of transferred assets $18,878,534,000
Coupon rates of transferred assets 0.0% to 15.75%
Maturity dates of transferred assets 7/1/96 to 2/15/26
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 $2,792, $1,027 and $9,729 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 annualized rate of
.33%, .36 % and .40% 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 $32,177, $56,774 and $ 53,304
for the Deutsche Mark, Sterling and Yen Performance Portfolios,
respectively.
In addition, each fund has entered into arrangements with its custodian and
transfer agent whereby interest earned on uninvested cash balances was used
to offset a portion of each fund's expenses. During the period, the
custodian fees were reduced by $352 for the Yen Performance Portfolio under
this arrangement.
6. BENEFICIAL INTEREST.
At the end of the period, FMR was record owner of more than 5% of the
outstanding shares, and certain unaffiliated shareholders were record
owners of 10% or more of the total outstanding shares of the following
funds:
BENEFICIAL INTEREST
FUND AFFILIATED SHAREHOLDERS UNAFFILIATED SHAREHOLDERS
% OF OWNERSHIP # OF % OF OWNERSHIP
Sterling Performance Portfolio, L.P. 14 1 11
Yen Performance Portfolio, L.P. 6 - -
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.
9,468,429 DEM 9/3/96 $ 6,236,280 $ 20,210
(Payable amount $6,216,070)
FIDELITY STERLING PERFORMANCE PORTFOLIO, L.P.
698,833 GBP 9/3/96 $ 1,084,326 $ 10,199
(Payable amount $1,074,127)
FIDELITY YEN PERFORMANCE PORTFOLIO, L.P.
261,650,078 JPY 9/3/96 $ 2,408,246 $ (51,246)
(Payable amount $2,459,492)
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 WRITE FIDELITY
If more than one address is listed, please locate the address that is
closest to you. We'll give your correspondence immediate attention and send
you written confirmation upon completion of your request.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
100 Crosby Parkway - KP2C
Covington, KY 41015-4399
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6I
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6R
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
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
ADVISORY BOARD
William O. McCoy
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 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
