FIDELITY ADVISOR
(registered trademark)
KOREA FUND, INC.
ANNUAL REPORT
SEPTEMBER 30, 1999
(2_FIDELITY_LOGOS)(registered trademark)
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.
FUND TALK 4 The manager's review of fund
performance, strategy and
outlook.
INVESTMENT CHANGES 7 A summary of major shifts in
the fund's investments over
the past six months.
INVESTMENTS 8 A complete list of the fund's
investments with their
market values.
FINANCIAL STATEMENTS 14 Statements of assets and
liabilities, operations, and
changes in net assets, as
well as financial highlights.
NOTES 18 Notes to the financial
statements.
REPORT OF INDEPENDENT 22 The auditors' opinion.
ACCOUNTANTS
DIVIDENDS AND DISTRIBUTIONS 23 Dividend reinvestment and
cash purchase plan.
OTHER FUND INFORMATION 25 Changes and updates.
PROXY VOTING RESULTS 26
Third party marks appearing herein are the property of their
respective owners.
All other marks appearing herein are registered or unregistered
trademarks or service marks of FMR Corp. or an affiliated company.
This report is printed on recycled paper using soy-based inks.
NOTICE IS HEREBY GIVEN IN ACCORDANCE WITH SECTION 23(C) OF THE
INVESTMENT COMPANY ACT OF 1940
THAT FROM TIME TO TIME THE FUND MAY PURCHASE AT MARKET PRICES SHARES
OF ITS COMMON STOCK IN THE
OPEN MARKET.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE
SUBMITTED FOR THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. IT IS NOT A PROSPECTUS,
CIRCULAR OR REPRESENTATION
INTENDED FOR USE IN THE PURCHASE OR SALE OF SHARES OF THE FUND OR OF
ANY SECURITIES MENTIONED
IN THE REPORT.
PRESIDENT'S MESSAGE
(photo_of_Edward_C_Johnson_3d)
DEAR SHAREHOLDER:
September proved troublesome for the equity markets, as the Dow Jones
Industrial Average shed nearly 1,000 points from its record high set
about a month earlier. Jitters over an exceedingly strong economy and
the direction of short-term interest rates were the primary causes of
the Dow's struggle. Benefiting in part from a mild flight to safety,
prices of the benchmark 30-year Treasury bond were modestly higher for
the month.
While it's impossible to predict the future direction of the markets
with any degree of certainty, there are certain basic principles that
can help investors plan for their future needs.
First, investors are encouraged to take a long-term view of their
portfolios. If you can afford to leave your money invested through the
inevitable up and down cycles of the financial markets, you will
greatly reduce your vulnerability to any single decline. We know from
experience, for example, that stock prices have gone up over longer
periods of time, have significantly outperformed other types of
investments and have stayed ahead of inflation.
Second, you can further manage your investing risk through
diversification. A stock mutual fund, for instance, is already
diversified, because it invests in many different companies. You can
increase your diversification further by investing in a number of
different stock funds, or in such other investment categories 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, it's important to
remember that an investment in a money market fund is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. Although money market funds seek to preserve the
value of your investment at $1.00 per share, it is possible to lose
money by investing in these types of funds.
Finally, no matter what your time horizon or portfolio diversity, it
makes good sense to follow a regular investment plan, investing a
certain amount of money in a fund at the same time each month or
quarter and periodically reviewing your overall portfolio. By doing
so, you won't get caught up in the excitement of a rapidly rising
market, nor will you buy all your shares at market highs. While this
strategy - known as dollar cost averaging - won't assure a profit or
protect you from a loss in a declining market, it should help you
lower the average cost of your purchases. Of course, you should
consider your financial ability to continue your purchases through
periods of low price levels before undertaking such a strategy.
Remember to contact your investment professional if you need help with
your investments.
Best regards,
Edward C. Johnson 3d
FUND TALK: THE MANAGER'S OVERVIEW
(photograph of Hokeun Chung)
An interview with Hokeun Chung, Portfolio Manager of Fidelity Advisor
Korea Fund, Inc.
Q. HOW DID THE FUND PERFORM, HOKEUN?
A. The South Korean stock market experienced one of the most dramatic
rallies in its history. For the 12-month period that ended September
30, 1999, the fund had a total return of 193.73%, based on net asset
value. In comparison, the Korea Stock Exchange Composite Price Index
(KOSPI) returned 210.95% during the same period. In terms of the
fund's market value return - which represents gains or losses in the
fund's share price - the fund returned 147.27% during the period.
Q. WHAT FACTORS DROVE THE MARKET'S IMPRESSIVE PERFORMANCE?
A. Investors continued to put their faith in the strength of South
Korea's economic recovery for a number of reasons. First and foremost,
while interest rates moved higher late in the period, they were still
at historically low levels. This environment attracted domestic and
foreign investors as equity returns appeared more attractive relative
to bonds and money market accounts. Another factor was South Korea's
stronger-than-expected gross domestic product (GDP) results and a
favorable outlook for future GDP growth. In addition to lower interest
rates and growing confidence in the economic recovery, many companies
reported strong earnings growth.
Q. IN THE LAST REPORT, YOU MENTIONED THAT GOVERNMENT INTERVENTION AND
A STRONG JAPANESE YEN ALSO HELPED STIMULATE THE MARKET'S GAINS. DID
THIS ENVIRONMENT CONTINUE TO MOTIVATE INVESTORS?
A. While ongoing corporate reforms are necessary to maintain the
market's momentum, government intervention, combined with the efforts
of banks and other industries to restructure bad debt and reform
troubled operations, had a major role in restoring investor
confidence. Also, with the exception of the third quarter of 1999, the
strong Japanese yen did provide a positive impact on South Korea's
economy. Because it is primarily an export-driven economy that
competes directly with Japanese companies, a strong yen benefited
Korean companies by making their products cheaper relative to Japanese
products. As a result, this environment boosted exports and corporate
profits for Korean companies.
Q. WHY DID THE FUND UNDERPERFORM THE KOSPI DURING THE PERIOD?
A. Early in the period, the fund was underweighted in industries such
as construction, real estate and banking because I felt these sectors
tended to have high levels of debt and weak balance sheets relative to
sectors such as technology and utilities. Since January, this strategy
helped the fund outperform the KOSPI. However, the fund underperformed
early in the period as stocks in the construction, real estate and
banking sectors benefited dramatically from declining interest rates.
Q. WHICH STOCKS PROVIDED THE BIGGEST BOOST TO TOTAL RETURN?
A. Samsung Electronics, the fund's largest holding, continued to
produce exceptional returns. Its shares experienced a strong rally
during the period as this leader in dynamic random access memory
(DRAM) manufacturing benefited from increasing DRAM prices and robust
demand. Shares of Pohang Iron & Steel, another top holding of the
fund, benefited from the global economic recovery, increased steel
prices and improved domestic and global demand for its products. The
fund's second-largest holding, Korea Electric Power, also provided
outstanding results for the fund. It benefited from the government's
plans to privatize the company - transitioning it from a
government-run agency to a privately held corporation - which should
make it more focused on investment returns and profitability.
Q. WHICH HOLDINGS HURT THE FUND'S PERFORMANCE?
A. While I remained underweighted in financial services and banking
stocks relative to the KOSPI, a number of financial services companies
detracted from the fund's total return. Holdings in Korea Exchange
Bank, Hana Bank, Hyundai Securities and Hanvit Bank declined sharply
during the third quarter as interest rates started to move higher.
Investors also became concerned that South Korean banks were not
making enough effort to recapitalize or restructure their debt to
improve their balance sheets. Outside the financial sector, the fund's
holding in Medison Co. Ltd., a medical equipment and supplies company,
underperformed relative to the overall market. Despite the stable
performance of the Korean currency - the won - investors perceived
that this export-driven company would be hurt by a strengthening won.
Q. THE MARKET STALLED IN RECENT MONTHS, MAKING IT DIFFICULT TO IMAGINE
THAT THIS AMAZING RECOVERY CAN CONTINUE MUCH LONGER. WHAT'S YOUR
OUTLOOK, HOKEUN?
A. While we may see more volatility in the short term, I'm generally
bullish on the South Korean market. Despite recent concerns about
inflation due to rising oil and commodity prices, as well as the
market decline brought on by potential problems at investment trusts
due to the bankruptcy of industry giant Daewoo Securities, I think the
short- and long-term prospects for corporate earnings and
profitability are positive. Many Korean companies are restructuring
debt and improving their operational strategies, and I believe this
will remain a major focus over the next few years. In the past, the
South Korean stock market traded at a discount to other regional
markets because of its debt-driven growth. However, ongoing
restructuring efforts should help re-establish the South Korean
market, as corporate management focuses more on returns, profitability
and increasing shareholder value. As a result, I remain positive on
the economic recovery and even increased the fund's holdings in growth
stocks, such as electronics. I also increased the fund's exposure to
cyclical industries, such as petrochemicals, steel, department store
operators and durable goods such as autos, tires and accessories due
to increased consumer spending.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER AND DO NOT NECESSARILY REPRESENT THE VIEWS OF FIDELITY OR
ANY OTHER PERSON IN THE FIDELITY ORGANIZATION. ANY SUCH VIEWS ARE
SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS
AND FIDELITY DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE
VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS FOR A FIDELITY FUND ARE BASED ON NUMEROUS
FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON
BEHALF OF ANY FIDELITY FUND.
(checkmark)FUND FACTS
GOAL: to achieve long-term
capital appreciation through
investments in equity and
debt securities of Korean
issuers
FUND NUMBER: 603
TRADING SYMBOL: FAK
START DATE: October 31,
1994
SIZE: as of September 30,
1999, more than $60 million
MANAGER: Hokeun Chung,
since 1996; joined Fidelity
in 1994
HOKEUN CHUNG ON THE
YEAR 2000 COMPUTER
ISSUE IN SOUTH KOREA:
"As we move closer to January 1,
2000, concerns over potential Year
2000 (Y2K) computer mishaps are
giving the markets and investors
some pause. Despite indications
that most South Korean
companies and government
agencies are prepared, some
investors fear that problems at
smaller companies down the
supply chain may cause business
disruptions.
"While it is impossible to predict
investor sentiment and reaction
toward this type of short-term
market situation, it is also an
extremely difficult task to screen
every company and all of their
associated suppliers and vendors.
However, I want to assure you that
my analysts and I regularly meet
and speak with management at
each of the companies in the
portfolio and receive detailed
updates regarding each company's
Y2K efforts and readiness. As a
result, we have a high level of
confidence in the Y2K
preparedness of every company in
the fund, and do not anticipate
any major disruptions in business
operations or earnings."
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C>
TOP TEN STOCKS AS OF
SEPTEMBER 30, 1999
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Samsung Electronics Co. Ltd. 15.0 12.7
Korea Electric Power Corp. 9.9 11.5
Korea Telecom 7.7 3.2
Pohang Iron & Steel Co. Ltd. 6.8 5.4
SK Telecom Co. Ltd. 3.6 3.4
Lg Chemical Ltd. 2.9 1.8
Shinsegae Department Store 2.8 2.4
Samsung Electro-Mechanics Co. 2.5 2.1
Cheil Jedang Corp. 2.5 4.9
Kookmin Bank 2.5 2.6
56.2 50.0
TOP TEN MARKET SECTORS AS OF
SEPTEMBER 30, 1999
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
UTILITIES 23.3 18.1
TECHNOLOGY 22.4 19.8
FINANCE 15.7 21.6
BASIC INDUSTRIES 12.2 13.6
DURABLES 6.2 3.7
NONDURABLES 3.8 8.0
RETAIL & WHOLESALE 3.2 3.2
SERVICES 2.9 4.1
INDUSTRIAL MACHINERY & 2.5 2.8
EQUIPMENT
HEALTH 2.5 7.9
</TABLE>
PRIOR TO THIS REPORT, CERTAIN INFORMATION RELATED TO PORTFOLIO
HOLDINGS WAS STATED AS A PERCENTAGE OF THE FUND'S INVESTMENTS.
INVESTMENTS SEPTEMBER 30, 1999
Showing Percentage of Net Assets
COMMON STOCKS - 98.9%
SHARES VALUE (NOTE 1)
BASIC INDUSTRIES - 12.2%
CHEMICALS & PLASTICS - 4.7%
Korea Chemical Co. Ltd. 7,860 $ 503,970
Lg Chemical Ltd. (a) 60,000 1,741,060
Rifa Industrial Co. 20,000 212,084
Youl Chon Chemical Co. 100,000 355,117
2,812,231
IRON & STEEL - 6.8%
Pohang Iron & Steel Co. Ltd. 36,922 4,142,910
PAPER & FOREST PRODUCTS - 0.7%
Hansol Paper Co. Ltd. 40,000 434,032
TOTAL BASIC INDUSTRIES 7,389,173
CONSTRUCTION & REAL ESTATE -
1.7%
BUILDING MATERIALS - 0.8%
Hanil Cement Manufacturing 10,000 201,397
Co.Ltd.
Keumkang Ltd. (a) 5,000 271,270
472,667
CONSTRUCTION - 0.9%
Daelim Industrial Co. 20,000 251,541
Daelim Industrial Co. rights 4,986 14,345
10/05/99 (a)
Doosan Construction & 60,000 298,397
Engineering Co. Ltd.
564,283
TOTAL CONSTRUCTION & REAL 1,036,950
ESTATE
DURABLES - 6.2%
AUTOS, TIRES, & ACCESSORIES -
3.5%
Hyundai Motor Co. Ltd. 22,460 464,339
Kia Motors Corp. (a) 50,000 472,667
Samsung Corp. 80,000 1,170,571
2,107,577
CONSUMER ELECTRONICS - 2.0%
Lg Electronics, Inc. 35,000 1,173,859
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
DURABLES - CONTINUED
TEXTILES & APPAREL - 0.7%
Handsome Co. Ltd. (a) 50,000 $ 213,728
Illinois Shin Spinning Co. 4,050 229,716
Ltd.
443,444
TOTAL DURABLES 3,724,880
ENERGY - 0.8%
OIL & GAS - 0.8%
Ssangyong Oil Refining 25,000 499,383
FINANCE - 15.7%
BANKS - 9.9%
Hana Bank 100,000 740,649
Hanvit Bank (a) 184,600 690,448
Housing & Commercial Bank (a) 60,000 1,159,062
Kookmin Bank 120,009 1,504,428
KorAm Bank Ltd. 50,000 334,977
Korea Exchange Bank (a) 80,000 342,622
Shinhan Bank 130,000 1,207,562
5,979,748
CREDIT & OTHER FINANCE - 1.3%
Samsung Securities Co. Ltd. 25,000 811,755
INSURANCE - 2.5%
Samsung Fire & Marine 34,000 1,498,067
Insurance
SECURITIES INDUSTRY - 2.0%
Daewoo Securities Co. Ltd. 25,000 368,886
Dongwon Securities Co. Ltd. 25,000 587,751
Hyundai Securities Co. Ltd. 15,000 271,270
1,227,907
TOTAL FINANCE 9,517,477
HEALTH - 2.5%
DRUGS & PHARMACEUTICALS - 0.5%
Suheung Capsule Co. Ltd. 30,000 313,193
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
HEALTH - CONTINUED
MEDICAL EQUIPMENT & SUPPLIES
- - 2.0%
Medison Co. Ltd. 110,000 $ 1,175,503
TOTAL HEALTH 1,488,696
INDUSTRIAL MACHINERY &
EQUIPMENT - 2.5%
ELECTRICAL EQUIPMENT - 2.5%
Samsung Electro-Mechanics Co. 30,000 1,528,976
MEDIA & LEISURE - 0.6%
LODGING & GAMING - 0.6%
Hotel Shilla Co. 50,000 382,244
NONDURABLES - 3.8%
BEVERAGES - 0.7%
Doosan Co. Ltd. (a) 8,000 331,443
Hite Brewery Co. Ltd. (a) 1,644 54,462
385,905
FOODS - 3.1%
Cheil Jedang Corp. 28,000 1,507,603
Nong Shim Co. Ltd. 7,000 378,052
1,885,655
TOTAL NONDURABLES 2,271,560
RETAIL & WHOLESALE - 3.2%
GENERAL MERCHANDISE STORES -
2.8%
Shinsegae Department Store 30,000 1,681,873
TRADING COMPANIES - 0.4%
Hyundai Industrial 26,000 285,327
Development & Construction
Co.
TOTAL RETAIL & WHOLESALE 1,967,200
SERVICES - 2.9%
ADVERTISING - 1.1%
Cheil Communications, Inc. 10,000 632,141
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
SERVICES - CONTINUED
SERVICES - 1.8%
S1 Corp. 6,644 $ 1,116,891
TOTAL SERVICES 1,749,032
TECHNOLOGY - 22.4%
COMMUNICATIONS EQUIPMENT - 1.7%
LG Information & 7,000 509,248
Communications Ltd.
LG Information & 1,357 16,175
Communications Ltd. rights
10/06/99 (a)
Sindoricoh Co. Ltd. 14,000 516,728
1,042,151
COMPUTER SERVICES & SOFTWARE
- - 1.2%
Daou Technology, Inc. (a) 55,000 714,344
COMPUTERS & OFFICE EQUIPMENT
- - 1.3%
Trigem Computer, Inc. 11,427 784,344
ELECTRONICS - 18.2%
Hyundai Electronics 30,000 813,810
Industries Co. Ltd. (a)
Mirae Corp. 110,000 587,751
Samsung Display Devices Ltd. 10,000 567,201
Samsung Electronics Co. Ltd. 56,000 9,068,633
11,037,395
TOTAL TECHNOLOGY 13,578,234
TRANSPORTATION - 1.1%
AIR TRANSPORTATION - 0.7%
Korean Air 30,000 431,566
TRUCKING & FREIGHT - 0.4%
Hyundai Merchant Marine Co. 20,000 221,948
Ltd. (a)
TOTAL TRANSPORTATION 653,514
UTILITIES - 23.3%
CELLULAR - 3.6%
SK Telecom Co. Ltd. 2,379 2,200,061
ELECTRIC UTILITY - 9.9%
Korea Electric Power Corp. 182,000 5,984,378
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
UTILITIES - CONTINUED
TELEPHONE SERVICES - 9.8%
Korea Telecom 75,000 $ 4,630,084
Korea Telecom Sponsored ADR 35,000 1,295,000
(a)
5,925,084
TOTAL UTILITIES 14,109,523
TOTAL COMMON STOCKS 59,896,842
(Cost $36,837,286)
CORPORATE BONDS - 0.0%
MOODY'S RATINGS (UNAUDITED)
FINANCE - 0.0%
BANKS - 0.0%
Shinhan Bank 0% 12/31/48 unit - 6,493 (c) 731
(Cost $49)
CASH EQUIVALENTS - 1.6%
SHARES
Taxable Central Cash Fund, 989,245 989,245
5.22% (b) (Cost $989,245)
TOTAL INVESTMENT PORTFOLIO - 60,886,818
100.5%
(Cost $37,826,580)
NET OTHER ASSETS - (0.5)% (285,618)
NET ASSETS - 100% $ 60,601,200
LEGEND
(a) Non-income producing
(b) The rate quoted is the annualized seven-day yield of the fund at
period end.
(c) Amount represents units held.
INCOME TAX INFORMATION
At September 30, 1999, the aggregate cost of investment securities for
income tax purposes was $39,310,574. Net unrealized appreciation
aggregated $21,576,244, of which $24,827,244 related to appreciated
investment securities and $3,251,000 related to depreciated investment
securities.
At September 30, 1999, the fund had a capital loss carryforward of
approximately $29,824,000 of which $3,725,000, $2,506,000, $11,446,000
and $12,147,000 will expire on September 30, 2004, 2005, 2006 and
2007, respectively.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1999
ASSETS
Investment in securities, at $ 60,886,818
value (cost $37,826,580) -
See accompanying schedule
Receivable for investments 171,961
sold
Dividends receivable 4,805
Interest receivable 2,341
Deferred organization expenses 2,278
TOTAL ASSETS 61,068,203
LIABILITIES
Payable for investments $ 282,130
purchased
Accrued management fee 57,332
Other payables and accrued 127,541
expenses
TOTAL LIABILITIES 467,003
NET ASSETS $ 60,601,200
Net Assets consist of:
Paid in capital $ 68,802,687
Accumulated undistributed net (31,275,494)
realized gain (loss) on
investments and foreign
currency transactions
Net unrealized appreciation 23,074,007
(depreciation) on
investments and assets and
liabilities in foreign
currencies
NET ASSETS, for 5,619,043 $ 60,601,200
shares outstanding
NET ASSET VALUE ($60,601,200 $10.78
(divided by) 5,619,043
shares)
STATEMENT OF OPERATIONS
YEAR ENDED SEPTEMBER 30, 1999
INVESTMENT INCOME $ 674,704
Dividends
Interest 27,876
702,580
Less foreign taxes withheld (109,087)
TOTAL INCOME 593,493
EXPENSES
Management fee $ 498,248
Transfer agent fees 10,419
Administration fees and 103,099
expenses
Director's compensation 51,814
Custodian fees and expenses 89,297
Audit 62,085
Legal 11,161
Amortization of organization 31,500
expenses
Reports to shareholders 14,408
Miscellaneous 2,768
Total expenses before 874,799
reductions
Expense reductions (69,788) 805,011
NET INVESTMENT INCOME (LOSS) (211,518)
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities 7,171,482
Foreign currency transactions (143,551) 7,027,931
Change in net unrealized
appreciation (depreciation)
on:
Investment securities 35,445,393
Assets and liabilities in 13,573 35,458,966
foreign currencies
NET GAIN (LOSS) 42,486,897
NET INCREASE (DECREASE) IN $ 42,275,379
NET ASSETS RESULTING FROM
OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SEPTEMBER 30, 1999 YEAR ENDED SEPTEMBER 30, 1998
INCREASE (DECREASE) IN NET
ASSETS
Operations Net investment $ (211,518) $ (326,878)
income (loss)
Net realized gain (loss) 7,027,931 (24,704,128)
Change in net unrealized 35,458,966 2,633,662
appreciation (depreciation)
NET INCREASE (DECREASE) IN 42,275,379 (22,397,344)
NET ASSETS RESULTING FROM
OPERATIONS
Share Transactions
Common stock repurchased (4,588,886) -
Repurchase offer expenses (50,478) -
Redemption fees added to 50,478 -
paid in capital
Cost of shares repurchased (4,588,886) -
TOTAL INCREASE (DECREASE) 37,686,493 (22,397,344)
IN NET ASSETS
NET ASSETS
Beginning of period 22,914,707 45,312,051
End of period $ 60,601,200 $ 22,914,707
OTHER INFORMATION (624,338) -
Shares repurchased
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
YEARS ENDED SEPTEMBER 30, 1999 1998 1997 1996 1995 J
SELECTED PER-SHARE DATA
Net asset value, beginning $ 3.67 $ 7.26 $ 10.71 $ 12.62 $ 14.10
of period
Income from Investment
Operations
Net investment income (loss) H (.04) L (.05) (.06) (.08) (.02)
Net realized and unrealized 7.15 (3.54) (3.14) (1.83) (1.30)
gain (loss)
Total from investment 7.11 (3.59) (3.20) (1.91) (1.32)
operations
Dilution resulting from - - (.19) - -
common stock issued through
rights offering
Offering expenses - - (.06) - (.16)
Net asset value, end of period $ 10.78 K $ 3.67 $ 7.26 $ 10.71 $ 12.62
Market value, end of period $ 8.500 $ 3.438 $ 6.875 $ 10.500 $ 11.125
TOTAL RETURN B Market value E 147.27% (50.00)% (31.23)% D (5.62)% (25.83)% D
Net asset value C, F, G 193.73% (49.45)% (28.08)% (15.13)% (10.50)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 60,601 $ 22,915 $ 45,312 $ 47,181 $ 55,603
(000 omitted)
Ratio of expenses to average 1.75% 2.32% 1.88% 1.80% 1.88% A
net assets
Ratio of expenses to average 1.61% I, L 2.30% I 1.88% 1.79% I 1.88% A
net assets after expense
reductions
Ratio of net investment (.42)% (1.22)% (.64)% (.68)% (.19)% A
income (loss) to average
net assets
Portfolio turnover rate 58% 65% 51% 28% 25% A
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
D TOTAL MARKET VALUE RETURN INCLUDES THE EFFECT OF THE SALES LOAD PAID
IN CONNECTION WITH THE INITIAL PUBLIC OFFERING AND RIGHTS OFFERING.
E TOTAL RETURN BASED ON MARKET VALUE REFLECTS THE EFFECT OF CHANGES IN
THE FUND'S MARKET VALUE AND ASSUMES DIVIDENDS AND CAPITAL GAINS
DISTRIBUTIONS, IF ANY, WERE REINVESTED.
F TOTAL RETURN BASED ON NET ASSET VALUE REFLECTS THE EFFECT OF CHANGES
IN THE NET ASSET VALUE ON THE PERFORMANCE OF THE FUND, AND ASSUMES
DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS, IF ANY, WERE REINVESTED.
THIS PERCENTAGE IS NOT AN INDICATION OF THE PERFORMANCE OF
SHAREHOLDER'S INVESTMENT IN THE FUND BASED ON THE MARKET VALUE DUE TO
DIFFERENCES BETWEEN THE MARKET PRICE OF THE STOCK AND THE NET ASSET
VALUE OF THE FUND.
G TOTAL NET ASSET VALUE RETURN DOES NOT INCLUDE THE EFFECT OF DILUTION
OR SALES LOAD.
H NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
I FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
J FOR THE PERIOD OCTOBER 31, 1994 (COMMENCEMENT OF OPERATIONS) TO
SEPTEMBER 30, 1995.
K THE FUND INCURRED EXPENSES OF $.01 PER SHARE IN CONNECTION WITH ITS
REPURCHASE OFFER WHICH WERE OFFSET BY REDEMPTION FEES COLLECTED AS
PART OF THE REPURCHASE OFFER.
L INCLUDES REIMBURSEMENT OF $.01 PER SHARE FROM THE CUSTODIAN FOR AN
ADJUSTMENT TO PRIOR PERIODS' FEES.
NOTES TO FINANCIAL STATEMENTS
For the period ended September 30, 1999
1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Advisor Korea Fund, Inc. (the fund), a Maryland corporation,
is registered under the Investment Company Act of 1940, as amended
(the 1940 Act), as a non-diversified closed-end management investment
company.
There are 100,000,000 shares of $.001 par value common stock
authorized. During the first calendar quarter of each year, the Board
of Directors of the fund may, under certain circumstances, conduct a
repurchase or tender offer to repurchase a maximum of ten percent of
the fund's outstanding shares of common stock at a price equal to the
net asset value per share at the time of repurchase.
In March 1999, the fund completed a repurchase offer for ten percent
of the fund's outstanding shares. The repurchase offer resulted in the
repurchase of 624,338 shares of the fund's common stock at a net asset
value of $7.35 per share. Such shares are included as authorized but
unissued shares 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 fund:
SECURITY VALUATION. Securities for which quotations are readily
available are valued at the last sale price, or if no sale price, at
the closing bid price in the principal market in which such securities
are normally traded. If trading or events occurring in other markets
after the close of the principal market in which securities are traded
are expected to materially affect the value of those securities, then
they are valued at their fair value taking this trading or these
events into account. Fair value is determined in good faith under
consistently applied procedures under the general supervision of the
Board of Trustees. Securities for which quotations are not readily
available are valued primarily using dealer-supplied valuations or at
their fair value. Short-term securities with remaining maturities of
sixty days or less for which quotations are not readily available are
valued at amortized cost or original cost plus accrued interest, both
of which approximate current value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the fund 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 on disposition of foreign currencies,
the difference between the amount of net investment income accrued and
the U.S. dollar amount actually received, and gains and losses between
trade and settlement date on purchases and sales of securities. The
effects of changes in foreign
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
FOREIGN CURRENCY TRANSLATION - CONTINUED
currency exchange rates on investments in securities are included with
the net realized and unrealized gain or loss on investment securities.
INCOME TAXES. As a qualified regulated investment company under
Subchapter M of the Internal Revenue Code, the fund is not subject to
U.S. federal income taxes to the extent that it distributes
substantially all of its taxable income for its fiscal year. The fund
may be subject to foreign taxes on income, which are accrued based
upon the fund's understanding of the tax rules and regulations that
exist in the markets in which it invests. Foreign governments may also
impose taxes on other payments or transactions with respect to foreign
securities. The fund accrues such taxes as applicable. The schedule of
investments includes information regarding income taxes under the
caption "Income Tax Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend
date, except certain dividends from foreign securities where the
ex-dividend date may have passed, are recorded as soon as the fund is
informed of the ex-dividend date. Non-cash dividends included in
dividend income, if any, are recorded at the fair market value of the
securities received. Interest income is accrued as earned. Investment
income is recorded net of foreign taxes withheld where recovery of
such taxes is uncertain.
EXPENSES. The fund incurred organization expenses in connection with
its initial issuance of shares. The organization expenses of $157,276
are being amortized on a straight-line basis for a five-year period
beginning at the commencement of operations of the fund.
In addition, the fund incurred expenses in connection with its
repurchase offers of approximately $50,478 which were paid by the fund
and charged to paid in capital. These expenses were offset by
redemption fees collected as a part of the repurchase offer and were
accounted for as an addition to paid in capital.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date.
Pursuant to the fund's Dividend Reinvestment and Cash Purchase Plan
(the Plan), shareholders may elect to have all distributions
automatically reinvested in fund shares. Shareholders who do not
participate in the Plan will receive all distributions in cash paid by
check in U.S. dollars. If the market price per share on the valuation
date equals or exceeds net asset value per share on that date, the
fund will issue new shares to participants at net asset value. If the
net asset value is less than 95% of the market price on valuation
date, then shares will be issued at 95% of the market price. The
valuation date will be the dividend or distribution payment date or,
if that date is not a New York Stock Exchange trading date, the next
preceding trading date. If the net asset value exceeds the market
price of the fund shares at such time, the Plan Agent will purchase
shares of stock valued at market price on the valuation date.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
Income and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles. These differences, which may result in
distribution reclassifications, are primarily due to differing
treatments for foreign currency transactions, net operating losses,
capital loss carryforwards and losses deferred due to wash sales.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital.
Accumulated undistributed net realized gain (loss) on investments and
foreign currency transactions may include temporary book and tax basis
differences which will reverse in a subsequent period. Any taxable
income or gain remaining at fiscal year end is distributed in the
following year.
SECURITY TRANSACTIONS. Security transactions are accounted for as of
trade date. Gains and losses on securities sold are determined on the
basis of identified cost.
The fund invests in new securities offered by some foreign companies
by making applications in the public offering. Either all, or a
portion, of the issue price is paid at the time of the application and
recorded as application money for new issues. Upon allotment, this
amount, plus the remaining amount of issue price, is recorded as cost
of investments.
2. OPERATING POLICIES.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission (the SEC), the fund, along with
other affiliated entities of Fidelity Management & Research Company
(FMR), may transfer uninvested cash balances into one or more joint
trading accounts. These balances are invested in one or more
repurchase agreements for U.S. Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
securities are transferred to an account of the fund, 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 fund's investment adviser, is responsible for
determining that the value of the underlying securities remains in
accordance with the market value requirements stated above.
TAXABLE CENTRAL CASH FUND. Pursuant to an Exemptive Order issued by
the SEC, the fund may invest in the Taxable Central Cash Fund (the
Cash Fund) managed by Fidelity Investments Money Management, Inc., an
affiliate of FMR. The Cash Fund is an open-end money market fund
available only to investment companies and other accounts managed by
FMR and its affiliates. The Cash Fund seeks preservation of capital,
liquidity, and current income. Income distributions from the Cash Fund
are declared daily and paid monthly from net interest income.
2. OPERATING POLICIES - CONTINUED
TAXABLE CENTRAL CASH FUND - CONTINUED
Income distributions earned by the fund are recorded as interest
income in the accompanying financial statements.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $27,775,640 and $32,810,796, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a fee
that is computed daily at an annual rate of 1.00% of the fund's
average net assets.
ADVISER FEE. FMR and the fund entered into an investment advisory
agreement with Fidelity International Investment Advisors (FIIA), an
affiliate of FMR, pursuant to which FIIA is responsible for the
management of the fund's portfolio in accordance with the fund's
investment policies and for making decisions to buy or sell
securities. FMR pays FIIA a portion of its management fee.
SUB-ADVISER FEE. FIIA, on behalf of the fund, has entered into a
sub-advisory agreement with Fidelity Investments Japan Limited (FIJ),
an affiliate of FMR, to provide advisory services concerning fund
assets invested in Japanese and other securities. FIIA pays FIJ a
portion of its fee based on the assets managed by FIJ.
ADMINISTRATIVE FEE. Fidelity Service Company, Inc. (FSC), a division
of FMR Corp., has entered into a Fund Manage-
ment Agreement with the fund to provide, or arrange to provide,
administrative services to the fund including maintaining the fund's
accounting records. As the fund's administrative manager, FSC receives
a monthly fee at an annual rate of .20% of the fund's average net
assets.
5. EXPENSE REDUCTIONS.
FMR has directed certain portfolio trades to brokers who paid a
portion of the fund's expenses. For the period, the fund's expenses
were reduced by $10,427 under this arrangement. In addition, the fund
received a reimbursement of $59,361 from the custodian related to an
adjustment to prior periods' fees.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board
of Directors of Fidelity Advisor
Korea Fund, Inc.:
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of
Fidelity Advisor Korea Fund, Inc. at September 30, 1999, and the
results of its operations, the changes in its net assets and the
financial highlights for the periods indicated, in conformity with
generally accepted accounting principles. These financial statements
and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Fidelity Advisor Korea
Fund, Inc.'s management; our responsibility is to express an opinion
on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally
accepted auditing standards which require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe
that our audits, which included confirmation of securities at
September 30, 1999 by correspondence with the custodian and brokers,
provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Boston, Massachusetts
November 9, 1999
DIVIDENDS AND DISTRIBUTIONS
DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN
The fund intends to distribute annually to shareholders substantially
all of its net investment income from dividends and interest earnings
and expects to distribute any net realized capital gains at least
annually. Pursuant to the Dividend Reinvestment and Cash Purchase Plan
(the "Plan"), adopted by the fund, shareholders may elect to have all
distributions automatically reinvested by State Street Bank and Trust
Company (the "Plan Agent") in fund shares, pursuant to the Plan.
Shareholders who do not elect to participate in the Plan will receive
all distributions in cash paid by check in U.S. dollars mailed
directly to the shareholder by the Plan Agent. Shareholders who would
like additional information regarding the Plan or wish to have
distributions automatically reinvested should notify the fund, c/o the
Plan Agent for Fidelity Advisor Korea Fund, Inc., at Two Heritage
Drive, Quincy, Massachusetts 02171.
The Plan Agent will serve as agent for the shareholders in
administering the Plan. If the Directors of the fund declare an income
dividend or a capital gains distribution payable either in the fund's
Common Stock or in cash, as shareholders may have elected,
non-participants in the Plan will receive cash and participants in the
Plan will receive Common Stock, to be issued by the fund or purchased
by the Plan Agent in the open market, as provided below. If the market
price per share on the valuation date equals or exceeds net asset
value per share on that date, the fund will issue new shares to
participants at net asset value or, if the net asset value is less
than 95% of the market price on the valuation date, then new shares
will be issued at 95% of the market price. The valuation date will be
the dividend or distribution payment date or, if that date is not a
New York Stock Exchange trading day, then the next preceding trading
day. If the net asset value exceeds the market price of fund shares at
such time, or if the fund should declare a dividend or capital gains
distribution payable only in cash, the Plan Agent will, as agent for
the participants, buy fund shares in the open market on the New York
Stock Exchange or elsewhere, with the cash in respect of such dividend
or distribution, for the participant's account on, or shortly after,
the payment date.
Participants in the Plan have the option of making additional payments
to the Plan Agent, annually, in any amount from $100 to $3,000 for
investment in the fund's Common Stock. The Plan Agent will use all
such funds received from participants to purchase fund shares in the
open market on or about February 15 of each year. Any voluntary cash
payments received more than thirty days prior to such date will be
returned by the Plan Agent, and interest will not be paid on any
uninvested cash payments. To avoid unnecessary cash accumulations, and
also to allow ample time for receipt and processing by the Plan Agent,
it is suggested that participants send in voluntary cash payments to
be received by the Plan Agent approximately ten days before an
applicable purchase date as specified above. A participant may
withdraw a voluntary cash payment by written notice if the notice is
received by the Plan Agent not less than forty-eight hours before such
payment is to be invested.
The Plan Agent maintains all shareholder accounts in the Plan and
furnishes written confirmations of all transactions in the account,
including information needed by shareholders for personal and tax
records. Shares in the account of each Plan participant will be held
by the Plan Agent in non-certificated form in the name of the
participant, and each shareholder's proxy will include those shares
purchased pursuant to the Plan. In the case of shareholders such as
banks, brokers or nominees, which hold shares for others who are the
beneficial owners, the Plan Agent will administer the Plan on the
basis of the number of shares certified from time to time by the
shareholder as representing the total amount registered in the
shareholder's name and held for the account of beneficial owners who
are participating in the Plan.
There is no charge to participants for reinvesting dividends or
capital gains distributions. The Plan Agent's fees for the handling of
the reinvestment of dividends and distributions and voluntary cash
payments will be paid by the fund. There will be no brokerage charges
with respect to shares issued directly by the fund as a result of
dividends or capital gains distributions payable either in stock or in
cash. However, each participant's account will be charged a prorata
share of brokerage commissions incurred with respect to the Plan
Agent's open market purchases in connection with the reinvestment of
dividends or capital gains distributions and voluntary cash payments
made by the participant. Brokerage charges for purchasing small
amounts of stock for individual accounts through the Plan are expected
to be less than the usual brokerage charges for such transactions,
because the Plan Agent will be purchasing stock for all participants
in blocks and prorating the lower commission thus attainable.
The reinvestment of dividends and distributions will not relieve
participants of any income tax which may be payable on such dividends
and distributions.
If your shares are held in your own name and you wish to receive all
dividends and capital gain distributions in cash rather than in
shares, you may withdraw from the Plan without penalty at any time by
contacting the Plan Agent. If your shares are held in nominee name,
you should be able to withdraw from the Plan without penalty at any
time by sending written notice to your nominee. If you withdraw, you
will receive a share certificate for all full shares or, if you wish,
the Plan Agent will sell your shares and send you the proceeds, after
the deduction of brokerage commissions. The Plan Agent will convert
any fractional shares to cash at the then-current market price and
send you a check for the proceeds. Please note that, if you
participate in the Plan through a brokerage account, you may not be
able to continue as a participant if you transfer those shares to
another broker. Contact your broker or nominee or the Plan Agent to
see what is the best arrangement for you to participate in the Plan.
Experience under the Plan may indicate that changes are desirable.
Accordingly, the fund reserves the right to amend or terminate the
Plan as applied to any voluntary cash payment made and any dividend or
distribution paid subsequent to notice of the change sent to members
of the Plan at least 30 days before the record date for such dividend
or distribution. The Plan also may be amended by the fund or Plan
Agent by at least 30 days written notice to all participants in the
Plan. All correspondence concerning the Plan should be directed c/o
the Plan Agent for Fidelity Advisor Korea Fund, Inc., at Two Heritage
Drive, Quincy, Massachusetts 02171.
OTHER FUND INFORMATION
All of the stock of FMR is owned by FMR Corp., its parent organized in
1972. The voting common stock of FMR Corp. is divided into two
classes. Class B is held predominantly by members of the Edward C.
Johnson 3d family and is entitled to 49% of the vote on any matter
acted upon by the voting common stock. Class A is held predominantly
by non-Johnson family member employees of FMR Corp. and its affiliates
and is entitled to 51% of the vote on any such matter. The Johnson
family group and all other Class B shareholders have entered into a
shareholders' voting agreement under which all Class B shares will be
voted in accordance with the majority vote of Class B shares. Under
the Investment Company Act of 1940 (1940 Act), control of a company is
presumed where one individual or group of individuals owns more than
25% of the voting stock of that company. Therefore, through their
ownership of voting common stock and the execution of the
shareholders' voting agreement, members of the Johnson family may be
deemed, under the 1940 Act, to form a controlling group with respect
to FMR Corp.
CUSTODIAN. The Chase Manhattan Bank, N.A., 1211 Avenue of the
Americas, New York 10036, is custodian of the assets of the fund. The
custodian is responsible for the safekeeping of the fund's assets and
the appointment of the subcustodian banks and clearing agencies. The
custodian takes no part in determining the investment policies of the
fund or in deciding which securities are purchased or sold by the
fund. However, the fund may invest in obligations of the custodian and
may purchase securities from or sell securities to the custodian. The
Bank of New York and The Chase Manhattan Bank, each headquartered in
New York, also may serve as a special purpose custodian of certain
assets of the fund in connection with pooled repurchase agreement
transactions.
YEAR 2000 READINESS. The fund could be adversely affected if the
computer systems used by FMR and other service providers do not
properly process and calculate date-related information from and after
January 1, 2000. FMR has advised the fund that it is actively working
on necessary changes to its computer systems and expects that its
systems, and those of other major service providers, will be modified
prior to January 1, 2000. However, there can be no assurance that
there will be no adverse impact on the fund.
In addition, many foreign countries are less prepared than the United
States to properly process and calculate information related to dates
from and after January 1, 2000, which could result in difficulty
pricing foreign investments and failure by foreign issuers to pay
timely dividends, interest or principal.
PROXY VOTING RESULTS
The annual meeting of the fund's shareholders was held on July 14,
1999. The results of votes taken among shareholders on proposals are
listed below.
PROPOSAL 1
To elect two class II Directors (Messrs. Pozen and Yunich) to serve
for a term expiring on the date on which the annual meeting of
shareholders is held in 2000, or until their successors are duly
elected and qualified.
# OF % OF
SHARES VOTED SHARES VOTED
ROBERT C. POZEN
(CLASS II DIRECTOR)
Affirmative 4,052,374.000 97.390
Withheld 108,603.000 2.610
TOTAL 4,160,977.000 100.000
DAVID L. YUNICH
(CLASS II DIRECTOR)
Affirmative 4,051,374.000 97.366
Withheld 109,603.000 2.634
TOTAL 4,160,977.000 100.000
PROPOSAL 2
To ratify the selection of PricewaterhouseCoopers LLP as independent
accountants of the fund.
# OF % OF
SHARES VOTED SHARES VOTED
Affirmative 4,055,629.000 97.468
Against 75,289.000 1.810
Abstain 30,059.000 0.722
TOTAL 4,160,977.000 100.000
ADDRESS
Fidelity Advisor Korea Fund, Inc.
82 Devonshire Street
Boston, MA
1-800-426-5523
INVESTMENT MANAGER
Fidelity Management &
Research Company
Boston, MA
INVESTMENT ADVISER
Fidelity International
Investment Advisors
Pembroke, Bermuda
INVESTMENT SUB-ADVISER
Fidelity Investments Japan Limited
Tokyo, Japan
DIRECTORS AND OFFICERS
Edward C. Johnson 3d,
Director and President
Robert C. Pozen, Director and
Senior Vice President
Helmert Frans van den Hoven, Director
Edward H. Malone, Director
Bertram H. Witham, Jr., Director
David L. Yunich, Director
Keith Ferguson, Vice President
Eric D. Roiter, Secretary
Richard A. Silver, Treasurer
Matthew N. Karstetter, Deputy Treasurer
Gregory T. Merz, Assistant Secretary
John H. Costello, Assistant Treasurer
FAK-ANN-1199 67956
1.537462.102
TRANSFER AGENT, DIVIDEND PAYING AGENT AND REGISTRAR
State Street Bank and Trust Company
Boston, MA
CUSTODIAN
The Chase Manhattan Bank
New York, NY
LEGAL COUNSEL
Rogers & Wells
New York, NY
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
Boston, MA
(2_FIDELITY_LOGOS)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
