-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AS6btV7bw5rFhvU05SZB3gBsguRFvEaKwVRLm7hV3M1a/U9dbqJ5SAiJFpN9Qc2g sHVy/u0vhlUeX9a7aO071A== 0000744822-96-000010.txt : 19960621 0000744822-96-000010.hdr.sgml : 19960621 ACCESSION NUMBER: 0000744822-96-000010 CONFORMED SUBMISSION TYPE: 485BPOS PUBLIC DOCUMENT COUNT: 22 FILED AS OF DATE: 19960620 EFFECTIVENESS DATE: 19960620 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIDELITY INVESTMENT TRUST CENTRAL INDEX KEY: 0000744822 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1933 Act SEC FILE NUMBER: 002-90649 FILM NUMBER: 96583432 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1940 Act SEC FILE NUMBER: 811-04008 FILM NUMBER: 96583433 BUSINESS ADDRESS: STREET 1: 82 DEVONSHIRE ST CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 6174391269 MAIL ADDRESS: STREET 1: 82 DEVONSHIRE STREET STREET 2: MAIL ZONE ZH1 CITY: BOSTON STATE: MA ZIP: 02109 FORMER COMPANY: FORMER CONFORMED NAME: FIDELITY OVERSEAS FUND DATE OF NAME CHANGE: 19861228 485BPOS 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-1A REGISTRATION STATEMENT (No. 2-90649) UNDER THE SECURITIES ACT OF 1933 [X] Pre-Effective Amendment No. [ ] Post-Effective Amendment No. 66 [X] and REGISTRATION STATEMENT (No. 811-4008) UNDER THE INVESTMENT COMPANY ACT OF 1940 [X] Amendment No. [ ] Fidelity Investment Trust (Exact Name of Registrant as Specified in Charter) 82 Devonshire St., Boston, Massachusetts 02109 (Address Of Principal Executive Offices) (Zip Code) Registrant's Telephone Number: 617-570-7000 Arthur S. Loring, Secretary 82 Devonshire Street Boston, Massachusetts 02109 (Name and Address of Agent for Service) It is proposed that this filing will become effective ( ) immediately upon filing pursuant to paragraph (b) (x) on (June 20, 1996) pursuant to paragraph (b) ( ) 60 days after filing pursuant to paragraph (a)(i) ( ) on ( ) pursuant to paragraph (a)(i) ( ) 75 days after filing pursuant to paragraph (a)(ii) ( ) on ( ) pursuant to paragraph (a)(ii) of rule 485. If appropriate, check the following box: ( ) this post-effective amendment designates a new effective date for a previously filed post-effective amendment. Registrant has filed a declaration pursuant to Rule 24f-2 under the Investment Company Act of 1940 and filed the Notice required by such Rule on December 28, 1995. FIDELITY'S TARGETED INTERNATIONAL EQUITY FUNDS FIDELITY FRANCE FUND, FIDELITY GERMANY FUND, FIDELITY HONG KONG AND CHINA FUND, FIDELITY JAPAN SMALL COMPANIES FUND, FIDELITY NORDIC FUND, FIDELITY UNITED KINGDOM FUND CROSS REFERENCE SHEET FORM N-1A ITEM NUMBER PROSPECTUS SECTION
1................................... Cover Page ... 2a.................................. Expenses .. b, Contents; The Funds at a Glance; Who May Want to c................................ Invest 3a.................................. Financial Highlights .. * b................................... . c,d................................. Performance .. 4a Charter i................................. The Funds at a Glance; Investment Principles and ii............................... Risks b................................... Investment Principles and Risks .. Who May Want to Invest; Investment Principles and c.................................... Risks 5a.................................. Charter .. b(i)................................ Cover Page: The Funds at a Glance; Doing Business with Fidelity; Charter Charter (ii).............................. (iii)........................... Expenses; Breakdown of Expenses c................................ Charter c, Charter; Breakdown of Expenses d................................ Cover Page; Charter e.................................... Expenses f.................................... g(i)................................ Charter .. (ii)................................. * .. 5A................................. Performance . 6a Charter i................................. How to Buy Shares; How to Sell Shares; Transaction ii................................ Details; Exchange Restrictions Charter iii............................... * b................................... . Exchange Restrictions; Transaction Details c.................................... * d................................... . Doing Business with Fidelity; How to Buy Shares; e.................................... How to Sell Shares; Investor Services f,g................................. Dividends, Capital Gains, and Taxes .. 7a.................................. Cover Page; Charter .. Expenses; How to Buy Shares; Transaction Details b................................... . Sales Charge Reductions and Waivers c.................................... How to Buy Shares d................................... . e.................................... * f ................................ * 8................................... How to Sell Shares; Investor Services; Transaction ... Details; Exchange Restrictions 9................................... * ...
* Not Applicable FIDELITY'S TARGETED INTERNATIONAL EQUITY FUNDS FIDELITY FRANCE FUND, FIDELITY GERMANY FUND, FIDELITY HONG KONG AND CHINA FUND, FIDELITY JAPAN SMALL COMPANIES FUND, FIDELITY NORDIC FUND, FIDELITY UNITED KINGDOM FUND CROSS REFERENCE SHEET (continued) FORM N-1A ITEM NUMBER STATEMENT OF ADDITIONAL INFORMATION SECTION
10, 11.......................... Cover Page 12.................................. Description of the Trust .. 13a - Investment Policies and Limitations c............................ Portfolio Transactions d.................................. 14a - Trustees and Officers c............................ 15a.............................. * * b.................................. Trustees and Officers c.................................. 16a FMR, Portfolio Transactions i................................ Trustees and Officers ii.............................. Management Contracts iii............................. Management Contracts b................................. c, Contracts with FMR Affiliates d............................. e - * g........................... Description of the Trust h................................. Contracts with FMR Affiliates i................................. 17a - Portfolio Transactions d............................ e.............................. * 18a................................ Description of the Trust .. * b................................. 19a................................ Additional Purchase and Redemption Information .. Additional Purchase and Redemption Information; b.................................. Valuation of Portfolio Securities * c.................................. 20.................................. Distributions and Taxes .. 21a, Contracts with FMR Affiliates b.............................. * c................................. 22a.............................. * b.............................. Performance 23.................................. Financial Statements ..
* Not Applicable SUPPLEMENT TO FIDELITY'S TARGETED INTERNATIONAL EQUITY FUNDS PROSPECTUS DATED DECEMBER 30, 1995 The following information replaces the similar information found in the "Charter" section beginning on page P-21: Shigeki Makino is vice president and manager of Japan Fund and Pacific Basin Fund, which he has managed since October 1994 and May 1996, respectively. Previously, he was an analyst. Mr. Makino joined Fidelity in 1990. Thomas Sweeney is vice president and manager of Canada Fund, which he has managed since March 1996. Previously, he managed Capital Appreciation and Select Paper and Forest Products. Mr. Sweeney joined Fidelity in 1985. (small solid bullet)Fidelity International Investment Advisors (FIIA), in Pembroke, Bermuda, serves as a sub-adviser for all the funds. Currently, FIIA exercises discretionary management authority over Southeast Asia Fund, Hong Kong and China Fund, Japan Fund, and Pacific Basin Fund in its capacity as sub-adviser. (small solid bullet)Fidelity International Investment Advisors (U.K.) Limited (FIIAL U.K.), in Kent, England, serves as a sub-adviser for all the funds. Currently, FIIAL U.K. exercises discretionary management authority over Europe Fund, France Fund, Germany Fund, Japan Small Companies Fund, Nordic Fund, and United Kingdom Fund in its capacity as sub-adviser. (small solid bullet)Fidelity Investment Japan Ltd. (FIJ), in Tokyo, Japan serves as a sub-adviser for Hong Kong and China Fund, Japan Fund, Japan Small Companies Fund, and Southeast Asia Fund. FINANCIAL HIGHLIGHTS The following information supplements the information set forth in the Prospectus. The tables report selected data of Fidelity France Fund, Fidelity Germany Fund, Fidelity Hong Kong and China Fund, Fidelity Japan Small Companies Fund, Fidelity Nordic Fund, and Fidelity United Kingdom Fund for a share outstanding throughout the periods November 1, 1995 (commencement of operations) to April 30, 1996 (Unaudited): FRANCE
NOVEMBER 1, 1995 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1996 (UNAUDITED) SELECTED PER-SHARE DATA $ 10.00 Net asset value, beginning of period Income from Investment Operations Net investment income (loss) (.01) F Net realized and unrealized gain (loss) 1.72 Total from investment operations 1.71 Less Distributions (.04) From net investment income Redemption fees added to paid in capital .04 Net asset value, end of period $ 11.71 TOTAL RETURN B, C 17.56% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000 omitted) $ 7,396 Ratio of expenses to average net assets 2.00% A, D Ratio of net investment income (loss) to average net assets (.16)% A Portfolio turnover rate 42% A Average commission rate E $ .1879 A ANNUALIZED B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN (SEE NOTE 7 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 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. E A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER. F NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
GERMANY
NOVEMBER 1, 1995 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1996 SELECTED PER-SHARE DATA (UNAUDITED) Net asset value, beginning of period $ 10.00 Income from Investment Operations Net investment income (loss) (.03) Net realized and unrealized gain (loss) .52 Total from investment operations .49 Redemption fees added to paid in capital .02 Net asset value, end of period $ 10.51 TOTAL RETURN B, C 5.10% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000 omitted) $ 6,187 Ratio of expenses to average net assets 2.00% A, D Ratio of net investment income (loss) to average net assets (.77)% A Portfolio turnover rate 74% A Average commission rate E $ .2294 A ANNUALIZED B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN (SEE NOTE 7 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 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. E A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER.
HONG KONG AND CHINA
NOVEMBER 1, 1995 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1996 (UNAUDITED) SELECTED PER-SHARE DATA $ 10.00 Net asset value, beginning of peiod Income from Investment Operations Net investment income .17 F Net realized and unrealized gain (loss) .93 Total from investment operations 1.10 Less Distributions (.01) From net investment income Redemption fees added to paid in capital .05 Net asset value, end of period $ 11.14 TOTAL RETURN B, C 11.51% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000 omitted) $ 75,261 Ratio of expenses to average net assets 2.00% A, D Ratio of net investment income to average net assets 3.10% A Portfolio turnover rate 96% A Average commission rate E $ .0066 A ANNUALIZED B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN (SEE NOTE 7 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 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. E A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER. F NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
JAPAN SMALL COMPANIES
NOVEMBER 1, 1995 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1996 (UNAUDITED) SELECTED PER-SHARE DATA Net asset value, beginning of period $ 10.00 Income from Investment Operations Net investment income .01 E Net realized and unrealized gain (loss) 1.34 Total from investment operations 1.35 Redemption fees added to paid in capital .02 Net asset value, end of period $ 11.37 TOTAL RETURN B, C 13.70% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000 omitted) $ 149,051 Ratio of expenses to average net assets 1.38% A Ratio of net investment income to average net assets .11% A Portfolio turnover rate 51% A Average commission rate D $ .0576 A ANNUALIZED B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN (SEE NOTE 7 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 A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER. E NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
NORDIC
NOVEMBER 1, 1995 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1996 (UNAUDITED) SELECTED PER-SHARE DATA Net asset value, beginning of period $ 10.00 Income from Investment Operations Net investment income .09 Net realized and unrealized gain (loss) .70 Total from investment operations .79 Redemption fees added to paid in capital .01 Net asset value, end of period $ 10.80 TOTAL RETURN B, C 8.00% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000 omitted) $ 7,908 Ratio of expenses to average net assets 2.00% A, D Ratio of net investment income to average net assets 2.85% A Portfolio turnover rate 75% A Average commission rate E $ .0514 A ANNUALIZED B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN (SEE NOTE 7 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 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. E A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER.
UNITED KINGDOM
NOVEMBER 1, 1995 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1996 (UNAUDITED) SELECTED PER-SHARE DATA Net asset value, beginning of period $ 10.00 Income from Investment Operations Net investment income .10 Net realized and unrealized gain (loss) .63 Total from investment operations .73 Less Distributions (.04) From net investment income Redemption fees added to paid in capital - Net asset value, end of period $ 10.69 TOTAL RETURN B, C 7.33% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000 omitted) $ 2,199 Ratio of expenses to average net assets 2.00% A, D Ratio of net investment income to average net assets 2.23% A Portfolio turnover rate 30% A Average commission rate E $ .0082 A ANNUALIZED B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN (SEE NOTE 7 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 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. E A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER.
Please read this prospectus before investing, and keep it on file for future reference. It contains important information, including how each fund invests and the services available to shareholders. To learn more about each fund and its investments, you can obtain a copy of the funds' most recent financial reports and portfolio listing, or a copy of the Statement of Additional Information (SAI) dated December 30, 1995. The SAI has been filed with the Securities and Exchange Commission (SEC) and is incorporated herein by reference (legally forms a part of the prospectus). For a free copy of either document, call Fidelity at 1-800-544-8888. 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 risk s , including possible loss of principal amount invested . LIKE ALL MUTUAL FUNDS, THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. TIF-pro-1295 Each of these international funds is a growth fund and seeks to increase the value of your investment over the long-term by investing mainly in equity securities. FIDELITY'S TARGETED INTERNATIONAL EQUITY FUNDS FIDELITY CANADA FUND FIDELITY EMERGING MARKETS FUND FIDELITY EUROPE FUND FIDELITY EUROPE CAPITAL APPRECIATION FUND FIDELITY FRANCE FUND FIDELITY GERMANY FUND FIDELITY HONG KONG AND CHINA FUND FIDELITY JAPAN FUND FIDELITY JAPAN SMALL COMPANIES FUND FIDELITY LATIN AMERICA FUND FIDELITY NORDIC FUND FIDELITY PACIFIC BASIN FUND FIDELITY SOUTHEAST ASIA FUND FIDELITY UNITED KINGDOM FUND PROSPECTUS DECEMBER 30, 1995(FIDELITY_LOGO_GRAPHIC) 82 DEVONSHIRE STREET, BOSTON, MA 02109 CONTENTS
KEY FACTS THE FUNDS AT A GLANCE WHO MAY WANT TO INVEST EXPENSES Each fund's sales charge (load) and its yearly operating expenses. FINANCIAL HIGHLIGHTS A summary of each fund's financial data. PERFORMANCE How each fund has done over time. THE FUNDS IN DETAIL CHARTER How each fund is organized. INVESTMENT PRINCIPLES AND RISKS Each fund's overall approach to investing. BREAKDOWN OF EXPENSES How operating costs are calculated and what they include. YOUR ACCOUNT DOING BUSINESS WITH FIDELITY TYPES OF ACCOUNTS Different ways to set up your account, including tax-sheltered retirement plans. HOW TO BUY SHARES Opening an account and making additional investments. HOW TO SELL SHARES Taking money out and closing your account. INVESTOR SERVICES Services to help you manage your account. SHAREHOLDER AND ACCOUNT POLICIES DIVIDENDS, CAPITAL GAINS, AND TAXES TRANSACTION DETAILS Share price calculations and the timing of purchases and redemptions. EXCHANGE RESTRICTIONS SALES CHARGE REDUCTIONS AND WAIVERS
KEY FACTS THE FUNDS AT A GLANCE MANAGEMENT: Fidelity Management & Research Company (FMR) is the management arm of Fidelity Investments, which was established in 1946 and is now America's largest mutual fund manager. Foreign affiliates of FMR may help choose investments for the funds. As with any mutual fund, there is no assurance that a fund will achieve its goal. CANADA FUND GOAL: Long-term growth of capital. STRATEGY: Invests mainly in equity securities of Canadian issuers. SIZE: As of October 31, 1995, the fund had over $ 326 million in assets. EMERGING MARKETS FUND GOAL: Long-term growth of capital. STRATEGY: Invests mainly in equity securities of emerging market issuers. These countries can be found in regions such as Southeast Asia, Latin America, and Eastern Europe. SIZE: As of October 31, 1995, the fund had over $1 billion in assets. EUROPE FUND GOAL: Long-term growth of capital. STRATEGY: Invests mainly in equity securities of Western European issuers. SIZE: As of October 31, 1995, the fund had over $492 million in assets. EUROPE CAPITAL APPRECIATION FUND GOAL: Long-term growth of capital. STRATEGY: Invests mainly in equity securities of Eastern and Western European issuers. SIZE: As of October 31, 1995, the fund had over $194 million in assets. FRANCE FUND GOAL: Long-term growth of capital. STRATEGY: Invests mainly in equity securities of French issuers. GERMANY FUND GOAL: Long-term growth of capital. STRATEGY: Invests mainly in equity securities of German issuers. HONG KONG AND CHINA FUND GOAL: Long-term growth of capital. STRATEGY: Invests mainly in equity securities of Hong Kong and Chinese issuers. JAPAN FUND GOAL: Long-term growth of capital. STRATEGY: Invests mainly in equity securities of Japanese issuers. SIZE: As of October 31, 1995, the fund had over $343 million in assets. JAPAN SMALL COMPANIES FUND GOAL: Long-term growth of capital. STRATEGY: Invests mainly in equity securities of Japanese issuers with small market capitalizations. LATIN AMERICA FUND GOAL: High total investment return. STRATEGY: Invests mainly in equity and debt securities of Latin American issuers. SIZE: As of October 31, 1995, the fund had over $466 million in assets. NORDIC FUND GOAL: Long-term growth of capital. STRATEGY: Invests mainly in equity securities of issuers in Denmark, Finland, Norway, and Sweden. PACIFIC BASIN FUND GOAL: Long-term growth of capital. STRATEGY: Invests mainly in equity securities of Pacific Basin issuers. SIZE: As of October 31, 1995, the fund had over $317 million in assets. SOUTHEAST ASIA FUND GOAL: Long-term growth of capital. STRATEGY: Invests mainly in equity securities of Southeast Asian issuers. The fund does not anticipate investing in Japan. SIZE: As of October 31, 1995, the fund had over $649 million in assets. UNITED KINGDOM FUND GOAL: Long-term growth of capital. STRATEGY: Invests mainly in equity securities of British issuers. WHO MAY WANT TO INVEST The funds are designed for investors looking to target a particular region, country, or emerging market . By including international investments in your portfolio, you can achieve additional diversification and participate in growth opportunities around the world. However, it is important to note that investments in foreign securities involve risks in addition to those of U.S. investments. The value of the funds' investments will vary from day to day, and generally reflect market conditions, interest rates, and other company, political, or economic news. In the short-term, stock prices can fluctuate dramatically in response to these factors. Over time, however, stocks have shown greater growth potential than other types of securities. Bond values fluctuate based on changes in interest rates and in the credit quality of the issuer. In addition to those general risks, international investing involves different or increased risks. The performance of international funds depends upon currency values, the political and regulatory environment, and overall economic factors in the countries in which a fund invests. These risks are particularly significant for funds that focus on a single country, group of countries or emerging markets . France Fund, Germany Fund, Hong Kong and China Fund, Japan Small Companies Fund, Nordic Fund, and United Kingdom Fund are non-diversified funds. Non-diversified funds may invest a greater portion of their assets in securities of individual issuers than diversified funds. As a result, changes in the market value of a single issuer could cause greater fluctuations in share value than would occur in a more diversified fund. See "INVESTMENT PRINCIPLES AND RISKS" on page . When you sell your shares, they may be worth more or less than what you paid for them. By themselves, the funds do not constitute a balanced investment plan. EXPENSES SHAREHOLDER TRANSACTION EXPENSES are charges you pay when you buy, sell or hold shares of a fund. See page and pages - for an explanation of how and when these charges apply. Lower sales charges may be available for accounts over $250,000. ANNUAL FUND OPERATING EXPENSES are paid out of each fund's assets. Each fund pays a management fee that, in certain cases, varies based on its performance. Each fund also incurs other expenses for services such as maintaining shareholder records and furnishing shareholder statements and financial reports. A fund's expenses are factored into its share price or dividends and are not charged directly to shareholder accounts (see page ). The following are projections based on estimated or historical expenses , adjusted for current fees, and are calculated as a percentage of average net assets. A portion of the brokerage commissions that Canada Fund paid was used to reduce fund expenses. Had the effect of the reduction been included, the total operating expenses for Canada Fund would have been 1.08%. For France Fund, Germany Fund, Hong Kong and China Fund, Japan Small Companies Fund, Nordic Fund, and United Kingdom Fund, annual fund operating expenses are based on each fund's estimated expenses for its first year of operation. EXAMPLES. Let's say, hypothetically, that each fund's annual return is 5% and that its operating expenses are exactly as described. For every $1,000 you invested, here's how much you would pay in total expenses if you close your account after the number of years indicated. These examples illustrate the effect of expenses, but are not meant to suggest actual or expected costs or returns, all of which may vary. Transaction expenses Operating expenses Examples
CANADA FUND Maximum sales charge 3.00 Management fee . 72 % After 1 year $ 41 on purchases % (as a % of offering price) Maximum sales charge None 12b-1 fee None After 3 years $ 66 on reinvested distributions Deferred sales charge None Other expenses . 44 % After 5 years $ 92 on redemptions Redemption fee ( as a % 1. 5 0 Total fund operating 1. 16 After 10 $ 1 67 of amount redeemed on % A expenses % years shares held less than 90 days) Exchange fee None Annual account $12.0 maintenance fee 0 (for accounts under $2,500) EMERGING MARKETS FUND Maximum sales charge 3.00 Management fee .77% After 1 year $ 43 on purchases % (as a % of offering price) Maximum sales charge None 12b-1 fee None After 3 years $ 69 on reinvested distributions Deferred sales charge None Other expenses .51% After 5 years $ 98 on redemptions Redemption fee (as a % 1.50 Total fund operating 1.28 After 10 $ 180 of amount redeemed on % expenses % years shares held less than 90 days) Exchange fee None Annual account $12.0 maintenance fee 0 (for accounts under $2,500) EUROPE FUND Maximum sales charge 3.00 Management fee .80% After 1 year $ 42 on purchases % (as a % of offering price) Maximum sales charge None 12b-1 fee None After 3 years $ 69 on reinvested distributions Deferred sales charge None Other expenses . 46 % After 5 years $ 97 on redemptions Redemption fee (as a % 1.00 Total fund operating 1.26 After 10 $ 178 of amount redeemed on % expenses % years shares held less than 90 days) Exchange f ee None Annual account $12.0 maintenance fee 0 (for accounts under $2,500) A REDEMPTION FEE FOR CANADA FUND IS EFFECTIVE ON FEBRUARY 1, 1996. REDEMPTION FEE BEFORE FEBRUARY 1, 1996 IS 1.0% ON SHARES HELD LESS THAN 90 DAYS. Transaction expenses Operating expenses Examples EUROPE CAPITAL Maximum sales charge 3.00 Management fee . 85 % After 1 year $ 43 APPRECIATION FUND on purchases % (as a % of offering price) Maximum sales charge None 12b-1 fee None After 3 years $ 72 on reinvested distributions Deferred sales charge None Other expenses . 51 % After 5 years $ 102 on redemptions Redemption fee ( as a % 1.00 Total fund operating 1. 36 After 10 $ 18 9 of amount redeemed on % expenses % years shares held less than 90 days) Exchange f ee None Annual account $12.0 maintenance fee 0 (for accounts under $2,500) FRANCE FUND Maximum sales charge 3.00 Management fee 0% After 1 year $ 50 on purchases % (after reimbursement) (as a % of offering price) Maximum sales charge None 12b-1 fee None After 3 years $ 91 on reinvested distributions Deferred sales charge None Other expenses 2.00 on redemptions (after reimbursement) % Redemption fee (as a % 1.5 0 Total fund operating 2.00 of amount redeemed on % expenses % shares held less than 90 days) Exchange fee None Annual account $12.0 maintenance fee 0 (for accounts under $2,500) GERMANY FUND Maximum sales charge 3.00 Management fee 0% After 1 year $ 50 on purchases % (after reimbursement) (as a % of offering price) Maximum sales charge None 12b-1 fee None After 3 years $ 91 on reinvested distributions Deferred sales charge None Other expenses 2.00 on redemptions (after reimbursement) % Redemption fee (as a % 1.5 0 Total fund operating 2.00 of amount redeemed on % expenses % shares held less than 90 days) Exchange fee None Annual account $12.0 maintenance fee 0 (for accounts under $2,500) HONG KONG AND Maximum sales charge 3.00 Management fee .50% After 1 year $ 50 CHINA FUND on purchases % (after reimbursement) (as a % of offering price) Maximum sales charge None 12b-1 fee None After 3 years $ 91 on reinvested distributions Deferred sales charge None Other expenses 1.50 on redemptions % Redemption fee (as a % 1.50 Total fund operating 2.00 of amount redeemed on % expenses % shares held less than 90 days) Exchange fee None Annual account $12.0 maintenance fee 0 (for accounts under $2,500) Transaction expenses Operating expenses Examples JAPAN FUND Maximum sales charge 3.00 Management fee . 66 % After 1 year $ 41 on purchases % (as a % of offering price) Maximum sales charge None 12b-1 fee None After 3 years $ 65 on reinvested distributions Deferred sales charge None Other expenses . 49 % After 5 years $ 91 on redemptions Redemption fee ( as a % 1. 5 0 Total fund operating 1. 15 After 10 $ 1 66 of amount redeemed on % A expenses % years shares held less than 90 days) Exchange fee None Annual account $12.0 maintenance fee 0 (for accounts under $2,500) JAPAN SMALL Maximum sales charge 3.00 Management fee .76% After 1 year $ 49 COMPANIES FUND on purchases % (as a % of offering price) Maximum sales charge None 12b-1 fee None After 3 years $ 89 on reinvested distributions Deferred sales charge None Other expenses 1.18 on redemptions % Redemption fee ( as a % 1. 5 0 Total fund operating 1.94 of amount redeemed on % expenses % shares held less than 90 days) Exchange fee None Annual account $12.0 maintenance fee 0 (for accounts under $2,500) LATIN AMERICA FUND Maximum sales charge 3.00 Management fee .77% After 1 year $ 44 on purchases % (as a % of offering price) Maximum sales charge None 12b-1 fee None After 3 years $ 73 on reinvested distributions Deferred sales charge None Other expenses .64% After 5 years $ 105 on redemptions Redemption fee (as a % 1.50 Total fund operating 1.41 After 10 $ 194 of amount redeemed on % expenses % years shares held less than 90 days) Exchange fee None Annual account $12.0 maintenance fee 0 (for accounts under $2,500) NORDIC FUND Maximum sales charge 3.00 Management fee 0% After 1 year $ 50 on purchases % (after reimbursement) (as a % of offering price) Maximum sales charge None 12b-1 fee None After 3 years $ 91 on reinvested distributions Deferred sales charge None Other expenses 2.00 on redemptions (after reimbursement) % Redemption fee (as a % 1.5 0 Total fund operating 2.00 of amount redeemed on % expenses % shares held less than 90 days) Exchange fee None Annual account $12.0 maintenance fee 0 (for accounts under $2,500) A REDEMPTION FEE FOR JAPAN FUND IS EFFECTIVE ON FEBRUARY 1, 199 6 . REDEMPTION FEE BEFORE FEBRUARY 1, 1996 IS 1.0% ON SHARES HELD LESS THAN 90 DAYS. Transaction expenses Operating expenses Examples PACIFIC BASIN FUND Maximum sales charge 3.00 Management fee . 79 % After 1 year $ 44 on purchases % (as a % of offering price) Maximum sales charge None 12b-1 fee None After 3 years $ 73 on reinvested distributions Deferred sales charge None Other expenses . 61 % After 5 years $ 104 on redemptions Redemption fee (as a % 1.00 Total fund operating 1. 40 After 10 $ 1 93 of amount redeemed on % expenses % years shares held less than 90 days) Exchange fee None Annual account $12.0 maintenance fee 0 (for accounts under $2,500) SOUTHEAST ASIA FUND Maximum sales charge 3.00 Management fee .59% After 1 year $ 41 on purchases % (as a % of offering price) Maximum sales charge None 12b-1 fee None After 3 years $ 64 on reinvested distributions Deferred sales charge None Other expenses .51% After 5 years $ 89 on redemptions Redemption fee (as a % 1.50 Total fund operating 1.10 After 10 $ 160 of amount redeemed on % expenses % years shares held less than 90 days) Exchange fee None Annual account $12.0 maintenance fee 0 (for accounts under $2,500) UNITED KINGDOM FUND Maximum sales charge 3.00 Management fee 0% After 1 year $ 50 on purchases % (after reimbursement) (as a % of offering price) Maximum sales charge None 12b-1 fee None After 3 years $ 91 on reinvested distributions Deferred sales charge None Other expenses 2.00 on redemptions (after reimbursement) % Redemption fee (as a % 1.5 0 Total fund operating 2.00 of amount redeemed on % expenses % shares held less than 90 days) Exchange fee None Annual account $12.0 maintenance fee 0 (for accounts under $2,500)
FMR has voluntarily agreed to temporarily limit France Fund's, Germany Fund's, Hong Kong and China Fund's, Japan Small Companies Fund's, Nordic Fund's, and United Kingdom Fund's operating expenses to 2.00% of each fund's average net assets. If these agreements were not in effect, and there were no state expense limitations, the management fee, other expenses, and total operating expenses would be .76%, 4.92%, and 5.68%, respectively, for France Fund; .76%, 2.70%, and 3.46%, respectively, for Germany Fund ; .76%, 1.50%, and 2.26%, respectively, for Hong Kong and China Fund; .76%, 2.23%, and 2.99%, respectively, for Nordic Fund ; and .76%, 4.76%, and 5.52%, respectively, for United Kingdom Fund. Expenses eligible for reimbursement do not include interest, taxes, brokerage commissions, or extraordinary expenses. FINANCIAL HIGHLIGHTS The tables that follow are included in the funds' Annual Report and have been audited by either Coopers & Lybrand L.L.P. (Canada Fund , Europe Fund , Japan Fund , Pacific Basin Fund , and Emerging Markets Fund ) or Price Waterhouse LLP, (Europe Capital Appreciation Fund , Latin America Fund, and Southeast Asia Fund ) independent accountants. Their reports on the financial statements and financial highlights are included in the Annual Report. The financial statements and financial highlights are incorporated by reference into (are legally a part of) the funds ' Statement of Additional Information. Financial highlights information for France Fund, Germany Fund, Hong Kong and China Fund, Japan Small Companies Fund, Nordic Fund, and United Kingdom Fund is not included because the funds commenced operations on November 1, 1995. CANADA FUND
1.Selected Per-Share Data and Ratios 2.Years ended October 31 1995 1994 H 1993 1992 1991 1990 1989 1988F 3.Net asset value, beginning of period $ 17.18 $ 17.82 $ 14.23 $ 16.28 $ 13.57 $ 15.45 $ 12.74 $ 10.00 4.Income from Investment Operations 5. Net investment income (loss) .05 -- (.15) (.02)B .03B .05B .02B .32 6. Net realized and unrealized gain (loss) on .33 (.60) 3.76 (1.11) 3.59 (1.24) 2.96 2.42 investments 7. Total from investment operations .38 (.60) 3.61 (1.13) 3.62 (1.19) 2.98 2.74 8.Less Distributions 9. From net investment income (.01) -- (.02) -- (.06) (.01) (.12) -- 10. From net realized gain -- -- -- (.92) (.85) (.68) (.15)C -- 11. In excess of net realized gain -- (.04) -- -- -- -- -- -- 12. Total distributions (.01) (.04) (.02) (.92) (.91) (.69) (.27) -- 13.Redemption fees added to paid in capital .00 -- -- -- -- -- -- -- 14.Net asset value, end of period $ 17.55 $ 17.18 $ 17.82 $ 14.23 $ 16.28 $ 13.57 $ 15.45 $ 12.74 15.Total returnE,G 2.22% (3.37) 25.40% (7.09) 28.13% (8.16) 23.94% 27.40% % % % 16.Net assets, end of period (000 omitted) $ 326,763 $ 368,33 $ 95,977 $ 21,701 $ 23,327 $ 17,736 $ 24,331 $ 10,802 0 17.Ratio of expenses to average net assets 1.09% 1.57% 2.00% 2.00% 2.01% 2.05% 2.06% 2.02%A D,I D D D D A,D 18.Ratio of expenses to average net assets 1.08%I 1.57% 2.00% 2.00% 2.01% 2.05% 2.06% 2.02%A after expense reductions 19.Ratio of net investment income (loss) to .26% (.14) (.66) (.11) .17% .34% .16% 4.24%A average net assets % % % 20.Portfolio turnover rate 75% 59% 131% 55% 68% 164% 152% 401%A
A ANNUALIZED B N ET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD . C INCLUDES AMOUNTS DISTRIBUTED FROM NET REALIZED GAINS ON FOREIGN CURRENCY RELATED TRANSACTIONS TAXABLE AS ORDINARY INCOME. D FMR VOLUNTARILY AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE BEEN HIGHER. E THE TOTAL RETURN S WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. F FROM NOVEMBER 17, 1987 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1988. G TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED AND DO NOT INCLUDE THE ONE TIME SALES CHARGE. H EFFECTIVE NOVEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION 93-2, "DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF INCOME, CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES." AS A RESULT, NET INVESTMENT INCOME PER SHARE MAY REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES. I FMR HAS DIRECTED CERTAIN PORTFOLIO TRADES TO BROKERS WHO PAID A PORTION OF THE FUND'S EXPENSES.
EMERGING MARKETS FUND
21.Selected Per-Share Data and Ratios 22.Years ended October 31 1995 1994E 1993 1992 1991D 23.Net asset value, beginning of period $ 19.25 $ 16.18 $ 11.05 $ 10.40 $ 10.00 24.Income from Investment Operations 25. Net investment income .05 .06 .06C .08 .12 26. Net realized and unrealized gain (loss) on (4.13) 2.97 5.28 .76 .30 investments 27. Total from investment operations (4.08) 3.03 5.34 .84 .42 28.Less Distributions 29. From net investment income (.04) (.04) (.08) (.08) (.04) 30. In excess of net investment income -- (.01) -- -- -- 31. From net realized gain -- -- (.15) (.14) -- 32. Total distributions (.04) (.05) (.23) (.22) (.04) 33.Redemption fees added to paid in capital .01 .09 .02 .03 .02 34.Net asset value, end of period $ 15.14 $ 19.25 $ 16.18 $ 11.05 $ 10.40 35.Total returnA,F (21.17)% 19.32% 49.58% 8.56% 4.41% 36.Net assets, end of period (000 omitted) $ 1,095,583 $ 1,976,371 $ 757,737 $ 13,732 $ 6,450 37.Ratio of expenses to average net assets 1.28% 1.52% 1.91% 2.60% 2.60%B B 38.Ratio of net investment income to average net .46% .39% .44% .90% 1.34% assets 39.Portfolio turnover rate 78% 107% 57% 159% 45%
A TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. B EXPENSES LIMITED IN ACCORDANCE WITH A STATE EXPENSE LIMITATION. C NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FROM NOVEMBER 1, 1990 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1991. E EFFECTIVE NOVEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION 93-2, "DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF INCOME, CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES." AS A RESULT, NET INVESTMENT INCOME PER SHARE MAY REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES. F THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN.
EUROPE FUND
40.Selected Per-Share Data and Ratios 41.Years ended October 31 1995 1994 H 1993 1992D 1991 1990 1989 1988 1987 1986G 42.Net asset value, beginning of $ 21.18 $ 18.43 $ 15.12 $ 15.93 $ 16.28 $ 15.04 $ 12.96 $ 12.09 $ 9.99 $ 10.00 period 43.Income from Investment Operations 44. Net investment income .27 .18 .25 .27 .43F .46 .25E .12 .08 .01 45. Net realized and unrealized 2.37 2.65 3.35 (.57) (.40) .97 2.11 .75 2.03 (.02) gain (loss) on investments 46. Total from investment 2.64 2.83 3.60 (.30) .03 1.43 2.36 .87 2.11 (.01) operations 47.Less Distributions 48. From net investment income (.20) (.08) (.29) (.48) (.35) (.19) (.24) -- (.01) -- 49. From net realized gain (.11) -- -- (.03)B (.03)B - (.04)B -- -- -- 50. Total distributions (.31) (.08) (.29) (.51) (.38) (.19) (.28) -- (.01) -- 51. Redemption fees added to .00 -- -- -- -- -- -- -- -- -- paid in capital 52.Net asset value, end of period $ 23.51 $ 21.18 $ 18.43 $ 15.12 $ 15.93 $ 16.28 $ 15.04 $ 12.96 $ 12.09 $ 9.99 53.Total return C,I 12.76% 15.41 24.24 (1.89) .15 9.50 18.62% 7.20 21.13 (.10) % % % % % % % % 54.Net assets, end of period (000 $ 492,86 $ 507,4 $ 528,9 $ 431,22 $ 297,8 $ 389,2 $ 97,288 $ 102,0 $ 131,4 $ 19,375 omitted) 7 60 29 3 31 73 29 31 55.Ratio of expenses to average 1.18% 1.35 1.25 1.22% 1.31 1.45 1.89% 2.66 1.91 1.50% net assets I % % % % E % % A 56.Ratio of net investment income 1.12% .85 1.44 2.38% 2.83 2.87 1.67% .97 .48 2.77% to average net assets % % % % % % A 57.Portfolio turnover rate 38% 49 76 95% 80 148 160% 180 241 9% % % % % % % A
A ANNUALIZED B INCLUDES AMOUNTS DISTRIBUTED FROM NET REALIZED GAINS ON FOREIGN CURRENCY RELATED TRANSACTIONS TAXABLE AS ORDINARY INCOME. C TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED AND DO NOT INCLUDE THE ONE TIME SALES CHARGE. D AS OF NOVEMBER 1, 1991, THE FUND DISCONTINUED THE USE OF EQUALIZATION ACCOUNTING. E FOR THE PERIOD ENDED OCTOBER 31, 1989, NET INVESTMENT INCOME PER SHARE INCLUDES A REIMBURSEMENT OF $.008 PER SHARE FROM FIDELITY SERVICE CO. FOR ADJUSTMENTS TO PRIOR PERIODS' FEES. IF THIS EXPENSE REDUCTION HAD NOT EXISTED, THE RATIO OF EXPENSES TO AVERAGE NET ASSETS WOULD HAVE BEEN 1.94% . F INCLUDES $.05 PER SHARE FROM RECOVERY OF FOREIGN TAXES PREVIOUSLY WITHHELD ON DIVIDEND AND INTEREST PAYMENTS. G OCTOBER 1, 1986 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1986. H EFFECTIVE NOVEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION 93-2, "DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF INCOME, CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES." AS A RESULT, NET INVESTMENT INCOME PER SHARE MAY REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES. I FMR VOLUNTARILY AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE BEEN HIGHER. J THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN.
EUROPE CAPITAL APPRECIATION FUND
58.Selected Per-Share Data and Ratios 59.Year ended October 31 1995 1994B 60.Net asset value, beginning of period $ 11.35 $ 10.00 61.Income from Investment Operations 62. Net investment income .23 .08E 63. Net realized and unrealized gain (loss) on investments .50 1.27D 64. Total from investment operations .73 1.35 65. Redemption fees added to paid in capital .00 -- 66.Net asset value, end of period $ 12.08 $ 11.35 67.Total returnC 6.43% 13.50% 68.Net assets, end of period (000 omitted) $ 194,43 $ 352,85 3 5 69.Ratio of expenses to average net assets 1.36% 1.54% A 70.Ratio of net investment income to average net assets 1.45% .79% A 71.Portfolio turnover rate 176% 317% A
A ANNUALIZED B DECEMBER 21, 1993 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1994. C TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED AND DO NOT INCLUDE THE ONE TIME SALES CHARGE. D 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. E NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
JAPAN FUND
72.Selected Per-Share Data and Ratios 73.Years ended October 31 1995 1994 G 1993 1992D 74.Net asset value, beginning of period $ 14.27 $ 13.35 $ 9.84 $ 10.00 75.Income from Investment Operations 76. Net investment income (loss) (.02) (.04)E (.09) -- 77. Net realized and unrealized gain (loss) on investments (1.89) 1.31 3.60 (.16) 78. Total from investment operations (1.91) 1.27 3.51 (.16) 79.Less Distributions 80. From net realized gain (.36) (.39) -- -- 81. Redemption fees added to paid in capital .08 .04 -- -- 82.Net asset value, end of period $ 12.08 $ 14.27 $ 13.35 $ 9.84 83.Total returnC ,F (12.96) 10.45% 35.67% (1.60)% % 84.Net assets, end of period (000 omitted) $ 343,98 $ 469,63 $ 118,19 $ 2,953 1 9 5 85.Ratio of expenses to average net assets 1.15% 1.42% 1.71% 2.00%A ,B 86.Ratio of net investment income (loss) to average net assets (.06) (.32) (.77) .03%A % % % 87.Portfolio turnover rate 86% 153% 257% --
A ANNUALIZED B FMR VOLUNTARILY AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE BEEN HIGHER. C TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED AND DO NOT INCLUDE THE ONE TIME SALES CHARGE. D FROM SEPTEMBER 15, 1992 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1992. E NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. F THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN. G EFFECTIVE NOVEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION 93-2, "DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF INCOME, CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES." AS A RESULT, NET INVESTMENT INCOME PER SHARE MAY REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
LATIN AMERICA FUND
88.Selected Per-Share Data and Ratios 89.Years ended October 31 1995 1994D 1993C 90.Net asset value, beginning of period $ 16.21 $ 13.28 $ 10.00 91.Income from Investment Operations 92. Net investment income .04 .07 .03 93. Net realized and unrealized gain (loss) on investments (6.52) 2.82 3.23 94. Total from investment operations (6.48) 2.89 3.26 95.Less distributions 96. From net investment income -- (.05) -- 97. From net realized gain -- (.05) -- 98. Total distributions -- (.10) -- 99.Redemption fees added to paid in capital .02 .14 .02 100.Net asset value, end of period $ 9.75 $ 16.21 $ 13.28 101.Total returnB (39.85) 22.89% 32.80% % 102.Net assets, end of period (000 omitted) $ 466,28 $ 888,53 $ 342,93 9 0 4 103.Ratio of expenses to average net assets 1.41% 1.48% 1.94% A 104.Ratio of net investment income to average net assets .97% .47% 1.21% A 105.Portfolio turnover rate 57% 77% 72% A
A ANNUALIZED B TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED AND DO NOT INCLUDE THE ONE TIME SALES CHARGE. C FROM APRIL 19, 1993 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1993. D EFFECTIVE NOVEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION 93-2, "DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF INCOME, CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES." AS A RESULT, NET INVESTMENT INCOME PER SHARE MAY REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
PACIFIC BASIN FUND
106.Selected Per-Share Data and Ratios 107.Years ended October 31 1995 1994 J 1993 1992B 1991 1990 1989 1988 1987 1986F 108.Net asset value, beginning of $ 19.96 $ 17.48 $ 12.00 $ 13.15 $ 12.89 $ 15.78 $ 13.99 $ 12.42 $ 9.90 $ 10.00 period 109.Income from Investment Operations 110. Net investment income (loss) .07D .10 .20 .08D .02D .12 (.027)D --D (.11) .012 111. Net realized and unrealized (3.12) 2.78 5.39 (1.23) .40 (2.37) 1.927 1.71 2.64 (.112) gain (loss) on investments 112. Total from investment (3.05) 2.88 5.59 (1.15) .42 (2.25) 1.900 1.71 2.53 (.100) operations 113.Less Distributions 114. From net investment income -- (.01) (.11) -- (.16) (.01) (.003) -- (.01) -- 115. In excess of net investment (.02) (.11) -- -- -- -- -- -- -- -- income 116. From net realized gain (2.02) (.28) -- -- -- (.63) (.107)C (.14) -- -- C 117. Total distributions (2.04) (.40) (.11) -- (.16) (.64) (.110) (.14) (.01) -- 118.Redemption fee added to $ .01 $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- paid in capital 119.Net asset value, end of $ 14.88 $ 19.96 $ 17.48 $ 12.00 $ 13.15 $ 12.89 $ 15.78 $ 13.99 $ 12.42 $ 9.90 period 120.Total returnE, H (15.87) 16.88 47.06 (8.75) 3.37 (14.99) 13.65% 13.82 25.57% (1.00)% % % % % % % % 121.Net assets, end of period $ 317,63 $ 553,5 $ 493,5 $ 116,27 $ 95,05 $ 86,354 $ 111,811 $ 136,0 $ 159,91 $ 22,020 (000 omitted) 5 32 33 7 1 60 7 122.Ratio of expenses to average 1.32 1.54 1.59 1.84 1.88 1.59% 1.40% 1.80 2.10% 1.50%A net assets %I % % % % % ,G 123.Ratio of net investment .44 .04 .15 .65 .12 .88% (.18) .04 (.83) 3.53%A income (loss) to average net % % % % % % % % assets 124.Portfolio turnover rate 65 88 77 105 143 118% 133% 228 324% -- % % % % % %
A ANNUALIZED B AS OF NOVEMBER 1, 1991, THE FUND DISCONTINUED THE USE OF EQUALIZATION ACCOUNTING. C INCLUDES AMOUNTS DISTRIBUTED FROM NET REALIZED GAINS ON FOREIGN CURRENCY RELATED TRANSACTIONS TAXABLE AS ORDINARY INCOME. D NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN C ALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. E TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED AND DO NOT INCLUDE THE ONE TIME SALES CHARGE. F FROM OCTOBER 1, 1986 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1986. G EXPENSES LIMITED IN ACCORDANCE WITH A STATE EXPENSE LIMITATION. H THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN. I FMR VOLUNTARILY AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE BEEN HIGHER. J EFFECTIVE NOVEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION 93-2, "DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF INCOME, CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES." AS A RESULT, NET INVESTMENT INCOME PER SHARE MAY REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
SOUTHEAST ASIA FUND
125.Selected Per-Share Data and Ratios 126.Years ended October 31 1995 1994 F 1993D 127.Net asset value, beginning of period $ 14.61 $ 13.24 $ 10.00 128.Income from Investment Operations 129. Net investment income .15 .04 .01 130. Net realized and unrealized gain (loss) on investments (.91) 1.23 3.22 131. Total from investment operations (.76) 1.27 3.23 132.Less Distributions 133. From net investment income -- (.04) -- 134. In excess of net investment income -- (.03) -- 135. Total distributions -- (.07) -- 136.Redemption fees added to paid in capital .03 .17 .01 137.Net asset value, end of period $ 13.88 $ 14.61 $ 13.24 138.Total returnB,C (5.00) 10.87% 32.40% % 139.Net assets, end of period (000 omitted) $ 649,86 $ 825,73 $ 499,669 8 4 140.Ratio of expenses to average net assets 1.10% 1.47% 2.00%A ,E 141.Ratio of net investment income to average net assets .90% .22% .45%A 142.Portfolio turnover rate 94% 157% 14%A
A ANNUALIZED B TOTAL RETURNS FOR PERIODS LESS THAN ONE YEAR ARE NOT ANNUALIZED AND DO NOT INCLUDE THE ONE TIME SALES CHARGE. C THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN. D FROM APRIL 19, 1993 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1993. E FMR VOLUNTARILY AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE BEEN HIGHER. F EFFECTIVE NOVEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION 93-2, "DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF INCOME, CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES." AS A RESULT, NET INVESTMENT INCOME PER SHARE MAY REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
PERFORMANCE Mutual fund performance is commonly measured as TOTAL RETURN. The total returns that follow are based on historical fund results and do not reflect the effect of taxes. An explanation of the terms and performance measures appears on page . The following chart shows each fund's performance over past fiscal years compared to groupings of funds with similar objectives and the Consumer Price Index (CPI). The CPI indicates inflation or loss of purchasing power if no investment was made. Comparisons for Canada Fund are not included because there is no appropriate competitive average. Because France Fund, Germany Fund, Hong Kong and China Fund, Japan Small Companies Fund, Nordic Fund, and United Kingdom Fund are new, their performance is not included. Each fund's fiscal years runs from November 1 through October 31.
Fiscal years ended October 31 Average Annual Total Return Cumulative Total Return
Past 1 year Past 5 years Life of fund Past 1 year Past 5 years Life of fund CANADA FUND B 2.22% 8.07% 10.01% 2.22% 47.44% 113.81% CANADA FUND (LOAD ADJ.A) -0.85% 7.42% 9.59% -0.85% 43.02% 107.40% EMERGING MARKETS FUNDC -21.17% n/a 9.78% -21.17% n/a 59.48% EMERGING MARKETS FUND (LOAD ADJ.A) -23.53% n/a 9.11% -23.53% n/a 54.69% Lipper Emerging Market Funds Average -18.99% n/a 10.74% -18.99% n/a 66.60% EUROPE FUND D 12.76% 9.70% 11.44% 12.76% 58.87% 167.67% EUROPE FUND (LOAD ADJ.A) 9.37% 9.03% 11.07% 9.37% 54.11% 159.64% Lipper European Region Funds Average 9.33% 6.70% n/a 9.33% 42.45% n/a EUROPE CAPITAL APPRECIATION FUND E 6.43% n/a 10.68% 6.43% n/a 20.80% EUROPE CAPITAL APPRECIATION FUND (LOAD 3.24% n/a 8.88% 3.24% n/a 17.18% ADJ.A) Lipper European Region Funds Average 9.33% 6.70% n/a 9.33% 42.45% n/a JAPAN FUND F -12.96% n/a 8.30% -12.96% n/a 28.35% JAPAN FUND (LOAD ADJ.A) -15.57% n/a 7.25% -15.57% n/a 24.50% Lipper Japanese Funds Average -11.26% -3.12% n/a 11.26% -14.48% n/a LATIN AMERICA FUNDG -39.85% n/a -0.73% -39.85% n/a -1.84% LATIN AMERICA FUND (LOAD ADJ.A) -41.66% n/a -1.92% -41.66% n/a -4.79% Lipper Latin America Region Funds -38.94% n/a n/a -38.94 n/a n/a Average PACIFIC BASIN FUND D -15.87% 6.41% 7.10% -15.87% 36.41% 86.48% PACIFIC BASIN FUND (LOAD ADJ.A) -18.39% 5.76% 6.74% -18.39% 32.32% 80.88% Lipper Pacific Region Funds Average -9.48 7.45 n/a -9.48 44.12 n/a SOUTHEAST ASIA FUND G -5.00% n/a 14.01% -5.00% n/a 39.46% SOUTHEAST ASIA FUND (LOAD ADJ.A) -7.85% n/a 12.65% -7.85% n/a 35.27% Lipper Pacific ex-Japan Region Funds -10.49 n/a n/a -10.49 n/a n/a Average Consumer Price Index 2.81% 2.86% n/a 2.81% 15.13% n/a
A LOAD-ADJUSTED RETURNS INCLUDE THE EFFECT OF PAYING A FUND'S SALES CHARGE B FROM NOVEMBER 17, 1987 C FROM NOVEMBER 1, 1990 D FROM OCTOBER 1, 1986 E FROM DECEMBER 21, 1993 F FROM SEPTEMBER 15, 1992 G FROM APRIL 19, 1993 The following charts illustrate the performance and volatility of the stock market returns for each fund's focal area (see page ).The performance for Emerging Markets Fund, Europe Fund, Europe Capital Appreciation Fund, Japan Fund, Latin America Fund, Pacific Basin Fund, and Southeast Asia Fund is also included. Some of the indexes may weight a particular country or group of countries more heavily than a specific fund. The indexes do not represent the performance of any fund and their composition may differ significantly from that of the fund that invests in that stock market. In addition, the charts do not necessarily use the same scale. Please see page for descriptions of the indexes. YEAR-BY-YEAR TOTAL RETURNS
Calendar years 1988 1989 1990 1991 1992 1993 1994 CANADA FUND 19.47 26.99 -5.49 17.68 -2.87 25.47 -11.9 % % % % % % 8% TSE 300 INDEX 21.04 24.92 -14.9 12.44 -10.3 27.45 -5.88 % % 0% % 8% % %
Percentage (%) Row: 1, Col: 1, Value: 0.0 Row: 1, Col: 2, Value: 0.0 Row: 2, Col: 1, Value: 0.0 Row: 2, Col: 2, Value: 0.0 Row: 3, Col: 1, Value: 0.0 Row: 3, Col: 2, Value: 0.0 Row: 4, Col: 1, Value: 0.0 Row: 4, Col: 2, Value: 0.0 Row: 5, Col: 1, Value: 19.47 Row: 5, Col: 2, Value: 21.04 Row: 6, Col: 1, Value: 26.99 Row: 6, Col: 2, Value: 24.92 Row: 7, Col: 1, Value: -5.49 Row: 7, Col: 2, Value: -14.9 Row: 8, Col: 1, Value: 17.68 Row: 8, Col: 2, Value: 12.44 Row: 9, Col: 1, Value: -2.87 Row: 9, Col: 2, Value: -10.38 Row: 10, Col: 1, Value: 25.47 Row: 10, Col: 2, Value: 27.45 Row: 11, Col: 1, Value: -11.98 Row: 11, Col: 2, Value: -5.88 (large solid box) CANADA FUND (large hollow box) TSE 300 Index YEAR-BY-YEAR TOTAL RETURNS
Calendar years 1988 1989 1990 1991 1992 1993 1994 EMERGING MARKETS FUND n/a n/a n/a 6.76% 5.85% 81.76 -17.9 % 3% MSCI EMERGING MARKETS FREE INDEX 40.70 65.32 -10.3 60.16 11.56 73.21 -7.32 % % 4% % % % %
Percentage (%) Row: 1, Col: 1, Value: 0.0 Row: 1, Col: 2, Value: 0.0 Row: 2, Col: 1, Value: 0.0 Row: 2, Col: 2, Value: 0.0 Row: 3, Col: 1, Value: 0.0 Row: 3, Col: 2, Value: 0.0 Row: 4, Col: 1, Value: 0.0 Row: 4, Col: 2, Value: 0.0 Row: 5, Col: 1, Value: 0.0 Row: 5, Col: 2, Value: 40.7 Row: 6, Col: 1, Value: 0.0 Row: 6, Col: 2, Value: 65.31999999999999 Row: 7, Col: 1, Value: 0.0 Row: 7, Col: 2, Value: -10.34 Row: 8, Col: 1, Value: 6.76 Row: 8, Col: 2, Value: 60.16 Row: 9, Col: 1, Value: 5.85 Row: 9, Col: 2, Value: 11.56 Row: 10, Col: 1, Value: 81.76000000000001 Row: 10, Col: 2, Value: 73.21000000000001 Row: 11, Col: 1, Value: -17.93 Row: 11, Col: 2, Value: -7.319999999999999 (large solid box) EMERGING MARKETS FUND (large hollow box) MSCI Emerging Markets Free Index YEAR-BY-YEAR TOTAL RETURNS
Calendar years 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 EUROPE FUND n/a n/a 14.90 5.84% 32.33 -4.59 4.16% -2.52 27.16 6.26% % % % % % MSCI EUROPE INDEX 78.93 43.84 3.67% 15.82 28.50 -3.84 13.11 -4.71 29.28 2.28% % % % % % % % %
Percentage (%) Row: 1, Col: 1, Value: 0.0 Row: 1, Col: 2, Value: 0.0 Row: 2, Col: 1, Value: 0.0 Row: 2, Col: 2, Value: 78.93000000000001 Row: 3, Col: 1, Value: 0.0 Row: 3, Col: 2, Value: 43.84 Row: 4, Col: 1, Value: 14.9 Row: 4, Col: 2, Value: 3.67 Row: 5, Col: 1, Value: 5.84 Row: 5, Col: 2, Value: 15.82 Row: 6, Col: 1, Value: 32.33 Row: 6, Col: 2, Value: 28.5 Row: 7, Col: 1, Value: -4.59 Row: 7, Col: 2, Value: -3.84 Row: 8, Col: 1, Value: 4.159999999999999 Row: 8, Col: 2, Value: 13.11 Row: 9, Col: 1, Value: -2.52 Row: 9, Col: 2, Value: -4.71 Row: 10, Col: 1, Value: 27.16 Row: 10, Col: 2, Value: 29.28 Row: 11, Col: 1, Value: 6.26 Row: 11, Col: 2, Value: 2.28 (large solid box) EUROPE FUND (large hollow box) MSCI Europe Index YEAR-BY-YEAR TOTAL RETURNS
Calendar years 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 EUROPE CAPITAL APPRECIATION FUND n/a n/a n/a n/a n/a n/a n/a n/a n/a 6.88% MSCI EUROPE INDEX 78.93 43.84 3.67% 15.82 28.50 -3.84 13.11 -4.71 29.28 2.28% % % % % % % % %
Percentage (%) Row: 1, Col: 1, Value: 0.0 Row: 1, Col: 2, Value: 0.0 Row: 2, Col: 1, Value: 0.0 Row: 2, Col: 2, Value: 78.93000000000001 Row: 3, Col: 1, Value: 0.0 Row: 3, Col: 2, Value: 43.84 Row: 4, Col: 1, Value: 0.0 Row: 4, Col: 2, Value: 3.67 Row: 5, Col: 1, Value: 0.0 Row: 5, Col: 2, Value: 15.82 Row: 6, Col: 1, Value: 0.0 Row: 6, Col: 2, Value: 28.5 Row: 7, Col: 1, Value: 0.0 Row: 7, Col: 2, Value: -3.84 Row: 8, Col: 1, Value: 0.0 Row: 8, Col: 2, Value: 13.11 Row: 9, Col: 1, Value: 0.0 Row: 9, Col: 2, Value: -4.71 Row: 10, Col: 1, Value: 0.0 Row: 10, Col: 2, Value: 29.28 Row: 11, Col: 1, Value: 6.88 Row: 11, Col: 2, Value: 2.28 (large solid box) EUROPE FUND (large hollow box) MSCI Europe Index YEAR-BY-YEAR TOTAL RETURNS
Calendar years 1990 1991 1992 1993 1994 JAPAN FUND n/a n/a n/a 20.45 16.46 % % TOPIX INDEX -35.8 8.16% -22.9 24.14 22.06 3% 1% % %
Percentage (%) Row: 1, Col: 1, Value: 0.0 Row: 1, Col: 2, Value: 0.0 Row: 2, Col: 1, Value: 0.0 Row: 2, Col: 2, Value: 0.0 Row: 3, Col: 1, Value: 0.0 Row: 3, Col: 2, Value: 0.0 Row: 4, Col: 1, Value: 0.0 Row: 4, Col: 2, Value: 0.0 Row: 5, Col: 1, Value: 0.0 Row: 5, Col: 2, Value: 0.0 Row: 6, Col: 1, Value: 0.0 Row: 6, Col: 2, Value: 0.0 Row: 7, Col: 1, Value: 0.0 Row: 7, Col: 2, Value: -35.83 Row: 8, Col: 1, Value: 0.0 Row: 8, Col: 2, Value: 8.16 Row: 9, Col: 1, Value: 0.0 Row: 9, Col: 2, Value: -22.91 Row: 10, Col: 1, Value: 20.45 Row: 10, Col: 2, Value: 24.14 Row: 11, Col: 1, Value: 16.46 Row: 11, Col: 2, Value: 22.06 (large solid box) JAPAN FUND (large hollow box) TOPIX Index YEAR-BY-YEAR TOTAL RETURNS
Calendar years 1988 1989 1990 1991 1992 1993 1994 LATIN AMERICA FUND n/a n/a n/a n/a n/a n/a -23.1 7% MSCI LATIN AMERICA FREE INDEX 80.06 55.74 -7.83 149.0 13.41 53.92 .64% % % % 6% % %
Percentage (%) Row: 1, Col: 1, Value: 0.0 Row: 1, Col: 2, Value: 0.0 Row: 2, Col: 1, Value: 0.0 Row: 2, Col: 2, Value: 0.0 Row: 3, Col: 1, Value: 0.0 Row: 3, Col: 2, Value: 0.0 Row: 4, Col: 1, Value: 0.0 Row: 4, Col: 2, Value: 0.0 Row: 5, Col: 1, Value: 0.0 Row: 5, Col: 2, Value: 80.06 Row: 6, Col: 1, Value: 0.0 Row: 6, Col: 2, Value: 55.74 Row: 7, Col: 1, Value: 0.0 Row: 7, Col: 2, Value: -7.83 Row: 8, Col: 1, Value: 0.0 Row: 8, Col: 2, Value: 149.06 Row: 9, Col: 1, Value: 0.0 Row: 9, Col: 2, Value: 13.41 Row: 10, Col: 1, Value: 0.0 Row: 10, Col: 2, Value: 53.92 Row: 11, Col: 1, Value: -23.17 Row: 11, Col: 2, Value: 0.6400000000000001 (large solid box) LATIN AMERICA FUND (large hollow box) MSCI Latin America Free Index YEAR-BY-YEAR TOTAL RETURNS
Calendar years 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 PACIFIC BASIN FUND n/a n/a 24.99 10.45 11.44 -27.2 12.54 -7.62 63.91 -2.81 % % % 1% % % % % MSCI PACIFIC INDEX 39.03 93.44 39.66 34.99 2.53% -34.4 11.30 -18.4 35.69 12.83 % % % % 2% % 0% % %
Percentage (%) Row: 1, Col: 1, Value: 0.0 Row: 1, Col: 2, Value: 0.0 Row: 2, Col: 1, Value: 0.0 Row: 2, Col: 2, Value: 39.03 Row: 3, Col: 1, Value: 0.0 Row: 3, Col: 2, Value: 93.44000000000001 Row: 4, Col: 1, Value: 24.99 Row: 4, Col: 2, Value: 39.66 Row: 5, Col: 1, Value: 10.45 Row: 5, Col: 2, Value: 34.99 Row: 6, Col: 1, Value: 11.44 Row: 6, Col: 2, Value: 2.53 Row: 7, Col: 1, Value: -27.21 Row: 7, Col: 2, Value: -34.42 Row: 8, Col: 1, Value: 12.54 Row: 8, Col: 2, Value: 11.3 Row: 9, Col: 1, Value: -7.619999999999999 Row: 9, Col: 2, Value: -18.4 Row: 10, Col: 1, Value: 63.91 Row: 10, Col: 2, Value: 35.69 Row: 11, Col: 1, Value: -2.81 Row: 11, Col: 2, Value: 12.83 (large solid box) PACIFIC BASIN FUND (large hollow box) MSCI Pacific Index YEAR-BY-YEAR TOTAL RETURNS
Calendar years 1988 1989 1990 1991 1992 1993 1994 SOUTHEAST ASIA FUND n/a n/a n/a n/a n/a n/a -21.7 6% MSCI FAR EAST JAPAN FREE INDEX 30.16 32.37 -6.35 31.20 21.99 101.7 -17.4 % % % % % 2% 8%
Percentage (%) Row: 1, Col: 1, Value: 0.0 Row: 1, Col: 2, Value: 0.0 Row: 2, Col: 1, Value: 0.0 Row: 2, Col: 2, Value: 0.0 Row: 3, Col: 1, Value: 0.0 Row: 3, Col: 2, Value: 0.0 Row: 4, Col: 1, Value: 0.0 Row: 4, Col: 2, Value: 0.0 Row: 5, Col: 1, Value: 0.0 Row: 5, Col: 2, Value: 30.16 Row: 6, Col: 1, Value: 0.0 Row: 6, Col: 2, Value: 32.37 Row: 7, Col: 1, Value: 0.0 Row: 7, Col: 2, Value: -6.35 Row: 8, Col: 1, Value: 0.0 Row: 8, Col: 2, Value: 31.2 Row: 9, Col: 1, Value: 0.0 Row: 9, Col: 2, Value: 21.99 Row: 10, Col: 1, Value: 0.0 Row: 10, Col: 2, Value: 101.72 Row: 11, Col: 1, Value: -21.76 Row: 11, Col: 2, Value: -17.48 (large solid box) SOUTHEAST ASIA FUND (large hollow box) MSCI Far East ex-Japan Free Index YEAR-BY-YEAR TOTAL RETURNS
Calendar years 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 MSCI FRANCE INDEX 83.21 79.14 -13.4 38.66 36.80 -13.3 18.52 3.41% 21.56 -4.70 % % 2% % % 5% % % %
Percentage (%) Row: 1, Col: 1, Value: 0.0 Row: 1, Col: 2, Value: 0.0 Row: 2, Col: 1, Value: 0.0 Row: 2, Col: 2, Value: 83.21000000000001 Row: 3, Col: 1, Value: 0.0 Row: 3, Col: 2, Value: 79.14 Row: 4, Col: 1, Value: 0.0 Row: 4, Col: 2, Value: -13.42 Row: 5, Col: 1, Value: 0.0 Row: 5, Col: 2, Value: 38.66 Row: 6, Col: 1, Value: 0.0 Row: 6, Col: 2, Value: 36.8 Row: 7, Col: 1, Value: 0.0 Row: 7, Col: 2, Value: -13.35 Row: 8, Col: 1, Value: 0.0 Row: 8, Col: 2, Value: 18.52 Row: 9, Col: 1, Value: 0.0 Row: 9, Col: 2, Value: 3.41 Row: 10, Col: 1, Value: 0.0 Row: 10, Col: 2, Value: 21.56 Row: 11, Col: 1, Value: 0.0 Row: 11, Col: 2, Value: -4.7 (large hollow box) MSCI France Index YEAR-BY-YEAR TOTAL RETURNS
Calendar years 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 MSCI GERMANY INDEX 136.4 35.90 -24.3 21.39 47.06 -8.88 8.78% -9.74 36.32 5.11% 5% % 3% % % % % %
Percentage (%) Row: 1, Col: 1, Value: 0.0 Row: 1, Col: 2, Value: 0.0 Row: 2, Col: 1, Value: 0.0 Row: 2, Col: 2, Value: 136.45 Row: 3, Col: 1, Value: 0.0 Row: 3, Col: 2, Value: 35.9 Row: 4, Col: 1, Value: 0.0 Row: 4, Col: 2, Value: -24.33 Row: 5, Col: 1, Value: 0.0 Row: 5, Col: 2, Value: 21.39 Row: 6, Col: 1, Value: 0.0 Row: 6, Col: 2, Value: 47.06 Row: 7, Col: 1, Value: 0.0 Row: 7, Col: 2, Value: -8.880000000000001 Row: 8, Col: 1, Value: 0.0 Row: 8, Col: 2, Value: 8.779999999999999 Row: 9, Col: 1, Value: 0.0 Row: 9, Col: 2, Value: -9.739999999999998 Row: 10, Col: 1, Value: 0.0 Row: 10, Col: 2, Value: 36.32 Row: 11, Col: 1, Value: 0.0 Row: 11, Col: 2, Value: 5.109999999999999 (large hollow box) MSCI Germany Index YEAR-BY-YEAR TOTAL RETURNS
Calendar years 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 MSCI HONG KONG INDEX 51.69 56.11 -4.11 28.12 8.39% 9.17% 49.52 32.29 116.7 -28.9 % % % % % % 0% 0%
Percentage (%) Row: 1, Col: 1, Value: 0.0 Row: 1, Col: 2, Value: 0.0 Row: 2, Col: 1, Value: 0.0 Row: 2, Col: 2, Value: 51.69 Row: 3, Col: 1, Value: 0.0 Row: 3, Col: 2, Value: 56.11 Row: 4, Col: 1, Value: 0.0 Row: 4, Col: 2, Value: -4.109999999999999 Row: 5, Col: 1, Value: 0.0 Row: 5, Col: 2, Value: 28.12 Row: 6, Col: 1, Value: 0.0 Row: 6, Col: 2, Value: 8.390000000000001 Row: 7, Col: 1, Value: 0.0 Row: 7, Col: 2, Value: 9.17 Row: 8, Col: 1, Value: 0.0 Row: 8, Col: 2, Value: 49.52 Row: 9, Col: 1, Value: 0.0 Row: 9, Col: 2, Value: 32.29000000000001 Row: 10, Col: 1, Value: 0.0 Row: 10, Col: 2, Value: 116.7 Row: 11, Col: 1, Value: 0.0 Row: 11, Col: 2, Value: -28.9 (large hollow box) MSCI Hong Kong Index YEAR-BY-YEAR TOTAL RETURNS
Calendar years 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 MSCI JAPAN INDEX 43.37 99.72 43.18 35.53 1.81% -36.0 9.09% -21.2 25.70 21.62 % % % % 2% 9% % %
Percentage (%) Row: 1, Col: 1, Value: 0.0 Row: 1, Col: 2, Value: 0.0 Row: 2, Col: 1, Value: 0.0 Row: 2, Col: 2, Value: 43.37 Row: 3, Col: 1, Value: 0.0 Row: 3, Col: 2, Value: 99.72 Row: 4, Col: 1, Value: 0.0 Row: 4, Col: 2, Value: 43.18 Row: 5, Col: 1, Value: 0.0 Row: 5, Col: 2, Value: 35.53 Row: 6, Col: 1, Value: 0.0 Row: 6, Col: 2, Value: 1.81 Row: 7, Col: 1, Value: 0.0 Row: 7, Col: 2, Value: -36.02 Row: 8, Col: 1, Value: 0.0 Row: 8, Col: 2, Value: 9.09 Row: 9, Col: 1, Value: 0.0 Row: 9, Col: 2, Value: -21.29 Row: 10, Col: 1, Value: 0.0 Row: 10, Col: 2, Value: 25.7 Row: 11, Col: 1, Value: 0.0 Row: 11, Col: 2, Value: 21.62 (large hollow box) MSCI Japan Index YEAR-BY-YEAR TOTAL RETURNS
Calendar years 1988 1989 1990 1991 1992 1993 1994 MSCI NORDIC COUNTRIES FREE INDEX 49.06 41.77 -7.22 8.90% -16.7 39.69 20.81 % % % 6% % %
Percentage (%) Row: 1, Col: 1, Value: 0.0 Row: 1, Col: 2, Value: 0.0 Row: 2, Col: 1, Value: 0.0 Row: 2, Col: 2, Value: 0.0 Row: 3, Col: 1, Value: 0.0 Row: 3, Col: 2, Value: 0.0 Row: 4, Col: 1, Value: 0.0 Row: 4, Col: 2, Value: 0.0 Row: 5, Col: 1, Value: 0.0 Row: 5, Col: 2, Value: 49.06 Row: 6, Col: 1, Value: 0.0 Row: 6, Col: 2, Value: 41.77 Row: 7, Col: 1, Value: 0.0 Row: 7, Col: 2, Value: -7.22 Row: 8, Col: 1, Value: 0.0 Row: 8, Col: 2, Value: 8.9 Row: 9, Col: 1, Value: 0.0 Row: 9, Col: 2, Value: -16.76 Row: 10, Col: 1, Value: 0.0 Row: 10, Col: 2, Value: 39.69 Row: 11, Col: 1, Value: 0.0 Row: 11, Col: 2, Value: 20.81 (large hollow box) MSCI Nordic Countries Free Index YEAR-BY-YEAR TOTAL RETURNS
Calendar years 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 MSCI UNITED KINGDOM INDEX 53.02 26.95 35.09 5.95% 21.87 10.29 16.02 -3.65 24.44 -1.63 % % % % % % % % %
Percentage (%) Row: 1, Col: 1, Value: 0.0 Row: 1, Col: 2, Value: 0.0 Row: 2, Col: 1, Value: 0.0 Row: 2, Col: 2, Value: 53.02 Row: 3, Col: 1, Value: 0.0 Row: 3, Col: 2, Value: 26.95 Row: 4, Col: 1, Value: 0.0 Row: 4, Col: 2, Value: 35.09 Row: 5, Col: 1, Value: 0.0 Row: 5, Col: 2, Value: 5.95 Row: 6, Col: 1, Value: 0.0 Row: 6, Col: 2, Value: 21.87 Row: 7, Col: 1, Value: 0.0 Row: 7, Col: 2, Value: 10.29 Row: 8, Col: 1, Value: 0.0 Row: 8, Col: 2, Value: 16.02 Row: 9, Col: 1, Value: 0.0 Row: 9, Col: 2, Value: -3.65 Row: 10, Col: 1, Value: 0.0 Row: 10, Col: 2, Value: 24.44 Row: 11, Col: 1, Value: 0.0 Row: 11, Col: 2, Value: -1.63 (large hollow box) MSCI United Kingdom Index EXPLANATION OF TERMS TOTAL RETURN is the change in value of an investment in a fund over a given period, assuming reinvestment of any dividends and capital gains. A CUMULATIVE TOTAL RETURN reflects actual performance over a stated period of time. An AVERAGE ANNUAL TOTAL RETURN is a hypothetical rate of return that, if achieved annually, would have produced the same cumulative total return if performance had been constant over the entire period. Average annual total returns smooth out variations in performance; they are not the same as actual year-by-year results. Average annual total returns covering periods of less than one year assume that performance will remain constant for the rest of the year. COMPARATIVE MARKET INDEXES used on pages - reflect the performance and volatility of stocks in a fund's focal area. The performance of each index includes changes in price, dividends paid on stocks in the index, and the effect of reinvesting dividends. Each index is translated into U.S. dollars. (small solid bullet) The TSE 300 Index, also known as the Toronto Stock Exchange Composite 300 Index, is an unmanaged index of 300 stocks traded on the Toronto Stock Exchange. (small solid bullet) The MSCI Emerging Markets Index, also known as the Morgan Stanley Capital International Emerging Markets Free Index, is an unmanaged index of over 560 foreign stock prices. (small solid bullet) The MSCI Europe Index, also known as the Morgan Stanley Capital International Europe Index, is an unmanaged index of over 600 companies representing twelve European countries. (small solid bullet) The TOPIX Index, also known as the Tokyo Stock Price Index, includes over 1,200 companies representing over 90% of the total market capitalization in Japan. (small solid bullet) The MSCI Latin America Index, also known as the Morgan Stanley Capital International Latin America Free Index, is an unmanaged index of over 130 foreign stock prices. (small solid bullet) The MSCI Pacific Index, also known as the Morgan Stanley Capital International Pacific Index, is an unmanaged index of over 400 companies from Australia, Hong Kong, Japan, and Singapore/Malaysia. (small solid bullet) The MSCI Far East ex-Japan Free Index, also known as the Morgan Stanley Capital International Combined Far East ex-Japan Free Index, is an unmanaged index of over 380 foreign stock prices. (small solid bullet) The MSCI France Index, also known as the Morgan Stanley Capital International France Index, is an unmanaged index of over 75 foreign stock prices. (small solid bullet) The MSCI Germany Index, also known as the Morgan Stanley Capital International Germany Index, is an unmanaged index of over 75 foreign stock prices. (small solid bullet) The MSCI Hong Kong Index, also known as the Morgan Stanley Capital International Hong Kong Index, is an unmanaged index of over 38 foreign stock prices. (small solid bullet) The MSCI Japan Index, also known as the Morgan Stanley Capital International Japan Index, is an unmanaged index of over 317 foreign stock prices. (small solid bullet) The MSCI Nordic Countries Free Index, also known as the Morgan Stanley Capital International Nordic Countries Index, is an unmanaged index of over 95 foreign stock prices. (small solid bullet) The MSCI United Kingdom Index, also known as the Morgan Stanley Capital International United Kingdom Index, is an unmanaged index of over 143 foreign stock prices. THE CONSUMER PRICE INDEX is a widely recognized measure of inflation, calculated by the U.S. government. COMPETITIVE FUNDS AVERAGES used on page reflect the performance of funds with similar objectives. Each average is published by Lipper Analytical Services and assumes reinvestment of distributions. (small solid bullet) Emerging Markets Fund is compared to the Lipper Emerging Markets Funds Average, which reflects the performance of 46 funds investing in emerging markets. (small solid bullet) Europe Fund and Europe Capital Appreciation Fund are compared to the Lipper European Region Funds A verage, which reflects the performance of 41 funds investing in Europe. (small solid bullet) Japan Fund is compared to the Lipper Japanese Funds A verage, which reflects the performance of 12 funds investing in Japan. (small solid bullet) Latin America Fund is compared to the Lipper Latin America Region Fund s Average, which reflects the performance of 1 7 funds investing in Latin America. (small solid bullet) Pacific Basin Fund is compared to the Lipper Pacific Region Funds Average, which reflects the performance of 36 funds investing in the Pacific region. (small solid bullet) Southeast Asia Fund is compared to the Lipper Pacific Region ex-Japan Funds A verage, which reflects the performance of over 34 funds investing in the Pacific region excluding Japan . Other illustrations of fund performance may show moving averages over specified periods. The funds' recent strategies, performance, and holdings are detailed twice a year in financial reports, which are sent to all shareholders. For current performance or a free annual report, call 1-800-544-8888. TOTAL RETURNS ARE BASED ON PAST RESULTS AND ARE NOT AN INDICATION OF FUTURE PERFORMANCE. 1. UNDERSTANDING PERFORMANCE Many markets around the globe offer the potential for significant growth over time; however, investing in foreign markets means assuming greater risks than investing in the United States. Factors like changes in a country's financial markets, its local political and economic climate, and the value of its currency create these risks. Because these funds invest in stocks, their performance is also related to foreign stock markets. For these reasons an international fund's performance may be more volatile than that of a fund that invests exclusively in the United States. (checkmark) THE FUNDS IN DETAIL CHARTER EACH FUND IS A MUTUAL FUND: an investment that pools shareholders' money and invests it toward a specified goal. In technical terms, France Fund , Germany Fund, Hong Kong and China Fund, Japan Small Companies Fund , Nordic Fund, and United Kingdom Fund are currently non-diversified funds of Fidelity Investment Trust and Canada Fund, Emerging Markets Fund, Europe Fund, Europe Capital Appreciation Fund, Japan Fund, Latin American Fund, Pacific Basin Fund, and Southeast Asia Fund are currently diversified fund s of Fidelity Investment Trust, an open-end management investment company organized as a Massachusetts business trust on April 20, 1984. EACH FUND IS GOVERNED BY A BOARD OF TRUSTEES, which is responsible for protecting the interests of shareholders. The trustees are experienced executives who meet throughout the year to oversee the funds' activities, review contractual arrangements with companies that provide services to the funds, and review performance. The majority of trustees are not otherwise affiliated with Fidelity. THE FUNDS MAY HOLD SPECIAL MEETINGS AND MAIL PROXY MATERIALS. These meetings may be called to elect or remove trustees, change fundamental policies, approve a management contract, or for other purposes. Shareholders not attending these meetings are encouraged to vote by proxy. Fidelity will mail proxy materials in advance, including a voting card and information about the proposals to be voted on. You are entitled to one vote for each share you own. FMR AND ITS AFFILIATES The funds are managed by FMR, which handles their business affairs and, with the assistance of the foreign affiliates listed below , may choose the funds' investments. Affiliates may assist FMR with foreign securities: (small solid bullet) Fidelity Management & Research (U.K.) Inc. (FMR U.K.), in London, England, serves as a sub-adviser for all the funds . (small solid bullet) Fidelity Management & Research Far East Inc. (FMR Far East), in Tokyo, Japan, serves as a sub-adviser for all the funds. (small solid bullet) Fidelity International Investment Advisors (FIIA), in Pembroke, Bermuda, serves as a sub-adviser for all the funds. Currently, FIIA exercises discretionary management authority over Southeast Asia Fund and Hong Kong and China Fund in its capacity as sub-adviser. (small solid bullet) Fidelity International Investment Advisors (U.K.) Limited (FIIAL U.K.), in Kent, England, serves as a sub-adviser for Europe Capital Appreciation Fund, France Fund, Germany Fund, Hong Kong and China Fund, Japan Small Companies Fund, Latin America Fund, Nordic Fund, Southeast Asia Fund, and United Kingdom Fund. Currently, FIIAL U.K. exercises discretionary management authority over Europe Fund, France Fund, Germany Fund, Nordic Fund, Pacific Basin Fund, and United Kingdom Fund in its capacity as sub-adviser. (small solid bullet) Fidelity Investment Japan Ltd. (FIJ), in Tokyo, Japan serves as a sub-adviser for Hong Kong and China Fund, Japan Fund , Japan Small Companies Fund , and Southeast Asia Fund . Currently, FIJ provides Japan Fund and Japan Small Companies Fund discretionary investment management authority in its capacity as sub-adviser. George Domolky is vice president and manager of Canada Fund , which he has managed since November 1987. Mr. Domolky also manages several funds for Fidelity Investments Canada Limited. Previously, he managed Select Food and Agriculture and assisted on Magellan. Mr. Domolky joined Fidelity in 1981. Richard Hazlewood is vice president and manager of Emerging Markets Fund, which he has managed since July 1993. Previously, he assisted on Low-Priced Stock and Contrafund, and served as a U.S. equities analyst. He joined Fidelity Investments Japan Ltd. in March 1991 as an analyst specializing in Japanese equities. Before that, he was a director of research at Sassoon Ltd. in Tokyo. Sally Walden is vice president and manager of Europe Fund , which she has managed since July 1992. Ms. Walden also serves as investment director for Fidelity Investment Services Ltd. and Fidelity Pensions Management Ltd. In addition, she manages European Opportunities and U.K. Growth Trust, a number of Canadian retail products, as well as institutional money for various international investors. Ms. Walden joined Fidelity in 1984. Kevin McCarey is manager of Europe Capital Appreciation Fund , which he has managed since December 1993. Previously, Mr. McCarey managed Advisor Overseas and served as an equity analyst in both the London and Boston offices. He joined Fidelity in 1985. Renaud Saleur is manager of France Fund, which he has managed since November 1995. He also manages several funds for Fidelity International, Limited. Mr. Saleur joined Fidelity in 1986. Simon Roberts has managed Germany Fund since November 1995. He also manages a Fidelity Funds Germany Fund for Fidelity International, Limited, and is Director of Equity Research, Europe. Before joining Fidelity as a research analyst in 1992, Mr. Roberts was a management consultant for Schroder Securities, Limited in London. Joseph Tse has managed Hong Kong & China Fund since November 1995. He also is director of investment and research for Fidelity Investments Management (Hong Kong), Limited. Mr. Tse joined Fidelity as an analyst in 1990. Shigeki Makino is manager of Japan Fund, which he has managed since October 1994. Mr. Makino is an employee of FIJ for whom he previously was an analyst for the fund. Mr. Makino joined FMR in 1990. Patricia Satterthwaite is vice president and manager of Latin America Fund, which she has managed since April 1993. Ms. Satterthwaite also manages Latin America Capital, a closed-end fund. Previously, she managed Pacific Basin and served as an analyst following the U.S., Mexico, Brazil, and Far East markets. Ms. Satterthwaite joined Fidelity in 1986. Colin Stone has managed Nordic Fund since November 1995. He also manages Fidelity Funds Iberian Fund and Fidelity Funds Nordic Fund for Fidelity International, Limited. Mr. Stone joined Fidelity in 1987. Simon Fraser is manager and Vice President of Pacific Basin Fund and manager of Japan Small Companies Fund, which he has managed since May 1993 and November 1995, respectively. Mr. Fraser also manages several funds for United Kingdom, European and Asian investors including Growth, Japan OTC & Regional Markets and Japan Smaller Companies Trust. He joined Fidelity in 1981 as an investment analyst. FIDELITY FACTS Fidelity offers the broadest selection of mutual funds in the world. (solid bullet) Number of Fidelity mutual funds: over 210 (solid bullet) Assets in Fidelity mutual funds: over $337 billion (solid bullet) Number of shareholder accounts: over 22 million (solid bullet) Number of investment analysts and portfolio managers: over 200 (checkmark) Allan Liu is manager of Southeast Asia Fund, which he has managed since April 1993. Previously, he was an analyst and manager for Fidelity Investments Management Ltd. in Hong Kong. Mr. Liu joined Fidelity in 1987. Samuel Morse has managed United Kingdom Fund since November 1995. He also manages three funds for Fidelity International, Limited: United Kingdom Growth and Income Fund, United Kingdom Dividend Growth Fund and United Kingdom Fidelity Strategic Income Fund. Mr. Morse also manages the United Kingdom and European portions of Fidelity Canada's Fidelity International Portfolio and Fidelity Funds International Fund. Mr. Morse joined Fidelity in 1990. Fidelity investment personnel may invest in securities for their own account pursuant to a code of ethics that establishes procedures for personal investing and restricts certain transactions. Fidelity Distributors Corporation (FDC) distributes and markets Fidelity's funds and services. Fidelity Service Co. (FSC) performs transfer agent servicing functions for the funds. FMR Corp. is the ultimate parent company of FMR, FMR Far East, and FMR U.K. Members of the Edward C. Johnson 3d family are the predominant owners of a class of shares of common stock representing approximately 49% of the voting power of FMR Corp. Under the Investment Company Act of 1940 (the 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, the Johnson family may be deemed under the 1940 Act to form a controlling group with respect to FMR Corp. FMR may use its broker-dealer affiliates and other firms that sell fund shares to carry out a fund's transactions, provided, that the fund receives brokerage services and commission rates comparable to those of other broker-dealers. INVESTMENT PRINCIPLES AND RISKS The funds offer investors the ability to concentrate an investment in a particular country or group of countries that they believe to offer strong long-term growth potential. The country or group of countries in which each fund focuses is the fund's "focal area." Each fund's performance is expected to be closely tied to economic and political conditions within its focal area. Because each fund invests in one country or group of related countries, each fund's performance is expected to be more volatile than more geographically diversified funds. Changes in regulatory, tax, or economic policy in a country could significantly affect the market in that country, and therefore a fund's performance. Many foreign stock markets are more concentrated than the U.S. market, with a small number of companies making up a large percentage of the local market. As a result, the performance of one company or a small number of companies could have a relatively large effect on a fund's performance. The funds may invest in the securities of any issuer, including companies and other business organizations as well as governments and government agencies. The funds, however, will tend to focus on equity securities , but may also invest in debt securities of any quality . The funds may invest in short-term debt securities and money market instruments for cash management purposes. FMR determines where an issuer or its principal business is located by looking at such factors as its country of organization, the primary trading market for its securities, and the location of its assets, personnel, sales, and earnings. When allocating the funds' investments among countries and regions, FMR considers such factors as the potential for economic growth, expected levels of inflation, governmental policies, and the outlook for currency relationships. The value of a fund's investments varies in response to many factors. Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. The securities of smaller, less well-known companies may be particularly volatile. In addition to currency fluctuations, investments in foreign securities are generally subject to increased economic and political risk. International funds have increased economic and political risks as they are exposed to events and factors in the various world markets. This is especially true for emerging markets. Also, because a substantial portion of the funds' investments are denominated in foreign currencies, changes in the value of foreign currencies can significantly affect a fund's share price. FMR may use a variety of techniques to either increase or decrease a fund's exposure to any currency. FMR may use various investment techniques to hedge a portion of a fund's risks, but there is no guarantee that these strategies will work as FMR intends. Of course, when you sell your shares of a fund, they may be worth more or less than what you paid for them. FMR normally invests each fund's assets according to its investment strategy. Each fund also reserves the right to invest without limitation in preferred stocks and investment-grade debt instruments for temporary, defensive purposes. CANADA FUND seeks growth of capital over the long term by investing in securities of issuers that have their principal activities in Canada or are registered in Canadian markets. FMR normally invests at least 65% of the fund's total assets in these securities. FMR expects that most of the fund's investments will be Canadian securities listed on the Toronto Stock Exchange, but it may also invest in U.S. securities. Canadian securities are sensitive to conditions within Canada, but also tend to follow the U.S. market. The country's economy relies strongly on the production and processing of natural resources. Also, the government has attempted to reduce restrictions against foreign investment, and its recent trade agreements with the U.S. and Mexico are expected to increase trade. Demand by many citizens in the Province of Quebec for succession from Canada may significantly impact the Canadian economy. EMERGING MARKETS FUND seeks capital appreciation aggressively by investing in the world's emerging markets. In pursuit of its goal, the fund emphasizes countries with relatively low gross national product per capita compared to the world's major economies, and with the potential for rapid economic growth. FMR normally invests at least 65% of the fund's total assets in securities of emerging markets issuers. Countries with emerging markets include those that have an emerging stock market as defined by the International Finance Corporation, those with low- to middle-income economies according to the World Bank, and those listed in World Bank publications as developing. FMR expects that the fund will normally invest in at least six different countries, although it may invest all of its assets in a single country. EUROPE FUND seeks growth of capital over the long term by investing in securities of issuers that have their principal activities in Western Europe. FMR normally invests at least 65% of the fund's total assets in these securities. Western European countries include Austria, Belgium, Denmark, Germany, Finland, France, Greece, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom. The fund may also invest in Eastern Europe. FMR expects that the fund will normally invest in at least three different countries, although it may invest all of its assets in a single country. The fund's performance is closely tied to economic and political conditions within Europe and the European Economic Area (formerly the Common Market) . Some European countries, particularly those in Eastern Europe, have less stable economies than those in Western Europe. Much of Europe remains in a recession. The movement of many Eastern European countries toward market economies, and the movement toward a unified common market may significantly affect European economies and markets. Eastern European countries are considered emerging markets. EUROPE CAPITAL APPRECIATION FUND seeks capital appreciation over the long term by investing in securities of issuers that have their principal activities in Eastern and Western Europe. In addition to Western European countries listed above, European countries also include Belarus, Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Russia, Slovakia, Slovenia, and Turkey. These additional countries are considered emerging markets. FMR normally invests at least 65% of the fund's total assets in the securities of Eastern and Western European issuers. In addition , the fund's investments are subject to the same risks as Europe Fund. FRANCE FUND seeks long-term growth of capital by investing in securities of French issuers. FMR normally invests at least 65% of the fund's total assets in securities of French issuers. The balance, however, may be invested in securities of other European issuers. Commercial, corporate, and securities laws govern the sale and resale of securities, while contractual and corporate restrictions may also apply. Planned privatizations and possible government incentives may result in major changes in the market and increased investments by private individuals. However, a future change in government, market, or economic factors could result in an unfavorable change in the policy on privatization. GERMANY FUND seeks long-term growth of capital by investing in securities of German issuers. FMR normally invests at least 65% of the fund's total assets in securities of German issuers. The balance, however, may be invested in securities of other European issuers. The German economy has experienced a recession with inflationary pressure as a result of increased domestic demand and the high cost of the unification of East and West Germany. The Bundesbank, Germany's central bank, has maintained relatively high interest rates to counter inflationary pressures. The future growth of Germany will depend on its ability to unite the country successfully. Also, a small number of companies represent a large percentage of the market. HONG KONG AND CHINA FUND seeks long-term growth of capital by investing in securities of Hong Kong and Chinese issuers. FMR normally invests at least 65% of the fund's total assets in securities of these issuers. The balance, however, may be invested in securities of other Southeast Asian issuers. Currently, the fund anticipates that most of its investments will be in Hong Kong issuers. In the future, more of its investments may be in shares of companies listed on mainland Chinese exchanges. Although China has committed by treaty to preserve the economic and social freedoms enjoyed in Hong Kong for 50 years after regaining control of Hong Kong in 1997, the continuation of the current form of the economic system in Hong Kong after the reversion will depend on the actions of the government of China. Business confidence in Hong Kong, therefore, can be significantly affected by such developments, which in turn can affect markets and business performance. In addition, a small number of companies represent a large percentage of the market. Also, it is important to note that a substantial portion of the companies listed on the Hong Kong Stock Exchange are involved in real estate related business. The securities market in China is relatively new and China has yet to develop comprehensive securities, corporate or commercial laws; or to adhere to internationally accepted accounting principles. There is greater risk of expropriation, naturalization, freezes, or confiscation in China than in many other countries. Foreign ownership limits exist on all securities. JAPAN FUND seeks long term growth of capital by investing in securities of Japanese issuers. FMR normally invests at least 65% of the fund's total assets in these securities. The balance, however, may be invested in securities of other Southeast Asian issuers. Japan's economic growth has declined significantly since 1990. The general government position has deteriorated as a result of weakening economic growth and stimulative measures taken to support economic activity and to restore financial stability. Although the decline in interest rates and fiscal stimulus packages have helped to contain recessionary forces, uncertainties remain. Japan is also heavily dependent upon international trade, so its economy is especially sensitive to trade barriers. In addition, Japan's banking industry is undergoing problems related to bad loans and declining values of real estate. JAPAN SMALL COMPANIES FUND seeks long-term growth of capital by investing in securities of Japanese issuers with small market capitalizations. FMR normally invests at least 65% of the fund's total assets in securities of these issuers. The balance, however, may be invested in securities of other Southeast Asian issuers or Japanese issuers with larger market capitalizations. FMR defines Japanese small market capitalization companies as those with market capitalizations of 100 billion Yen (approximately US $1 billion as of October 31 , 1995) or less at the time of the fund's investment. Companies whose capitalization exceeds 100 billion Yen after purchase will continue to be considered small-capitalized for purposes of the 65% policy. In addition to the risks associated with investing in Japan, i nvesting in small capitalization stocks may involve greater risk than investing in medium and large capitalization stocks, since they can be subject to more abrupt or erratic movements. Small capitalization companies may have more limited product lines, markets, or financial resources. LATIN AMERICA FUND seeks high total investment return, which is the combination of income and changes in the fund's value per share. FMR normally invests at least 65% of the fund's total assets in securities of Latin American issuers. Latin America includes Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru, Panama, and Venezuela. In pursuit of its goal, the fund tends to focus on equity securities, but may invest in any combination of equity and debt securities of any quality. Although there has been significant improvement in some Latin American economies, others continue to struggle with high interest and inflation rates. Recovery will depend on stability of the Mexican Peso, economic conditions in other countries and on world commodity prices. This region is vulnerable to political instability. The North American Free Trade Agreement will also continue to have a significant impact on the region. NORDIC FUND seeks long-term growth of capital by investing in securities of Danish, Finnish, Norwegian, and Swedish issuers. FMR normally invests at least 65% of the fund's total assets in securities of these issuers. The balance, however, may be invested in securities of other European issuers. The Nordic region is differentiated from the rest of Europe by its high exposure to cyclical industries such as oil, shipping, and pulp and paper. In addition, a small number of companies represent a large percentage of the market. PACIFIC BASIN FUND seeks growth of capital over the long term by investing in securities of issuers that have their principal activities in the Pacific Basin. FMR normally invests at least 65% of the fund's total assets in these securities. The balance, however, may be invested in securities of issuers in other Asian countries. The Pacific Basin includes Australia, Hong Kong, Indonesia, Japan, Korea, Malaysia, New Zealand, the People's Republic of China, the Philippines, Singapore, Taiwan, and Thailand. FMR expects that the fund will normally invest in at least three different countries, although it may invest all of its assets in a single country. Because the fund normally invests a significant percentage of its assets in Japanese issuers, the Japanese market will significantly impact the performance of the fund. Countries in the Pacific Basin are in various stages of economic development - some are considered emerging markets - but each has unique risks. Most countries in the Pacific Basin are heavily dependent on international trade. Some have prosperous economies, but are sensitive to world commodity prices. Others are especially vulnerable to recession in other countries. Some countries in the Pacific Basin have experienced rapid growth, although many suffer with obsolete financial systems, economic problems, or archaic legal systems. The return of Hong Kong to Chinese dominion will affect the entire Pacific Basin. SOUTHEAST ASIA FUND seeks capital appreciation by investing in securities of Southeast Asian issuers. FMR normally invests at least 65% of the fund's total assets in these securities. Southeast Asia includes Hong Kong, Indonesia, South Korea, Malaysia, the Philippines, the People's Republic of China, Singapore, Taiwan, and Thailand, but the fund does not anticipate investing in Japan. The balance, however, may be invested in securities of other Asian and South Pacific issuers. In pursuit of its goal, the fund focuses on equity securities, but it may also invest in other types of instruments, including debt securities of any quality. In addition, the fund's investments are subject to the same types of risks as Pacific Basin Fund. UNITED KINGDOM FUND seeks long-term growth of capital by investing in securities of British issuers. FMR normally invests at least 65% of the fund's total assets in securities of these issuers. The balance, however, may be invested in securities of other European issuers. The pace of economic growth in the United Kingdom has slowed in 1995, while continued tough monetary and fiscal policy helps keep inflation under control. SECURITIES AND INVESTMENT PRACTICES The following pages contain more detailed information about types of instruments in which a fund may invest, strategies FMR may employ in pursuit of a fund's investment objective, and a summary of related risks. Any restrictions listed supplement those discussed earlier in this section. A complete listing of each fund's limitations and more detailed information about the funds' investments are contained in the funds' SAI. Policies and limitations are considered at the time of purchase; the sale of instruments is not required in the event of a subsequent change in circumstances. FMR may not buy all of these instruments or use all of these techniques unless it believes that they are consistent with a fund's investment objective and policies and that doing so will help a fund achieve its goal. Current holdings and recent investment strategies are described in each fund's financial reports which are sent to shareholders twice a year. For a free SAI or financial report, call 1-800-544-8888. EQUITY SECURITIES may include common stocks, preferred stocks, convertible securities, and warrants. Common stocks, the most familiar type, represent an equity (ownership) interest in a corporation. Although equity securities have a history of long-term growth in value, their prices fluctuate based on changes in a company's financial condition and on overall market and economic conditions. Smaller companies are especially sensitive to these factors. RESTRICTIONS: With respect to 75% of total assets, each fund may not own more than 10% of the outstanding voting securities of a single issuer. EXPOSURE TO FOREIGN MARKETS. Foreign securities, foreign currencies, and securities issued by U.S. entities with substantial foreign operations may involve additional risks and considerations. These include risks relating to political or economic conditions in foreign countries, fluctuations in foreign currencies, withholding or other taxes, operational risks, increased regulatory burdens, and the potentially less stringent investor protection and disclosure standards of foreign markets. Additionally, governmental issuers of foreign securities may be unwilling to repay principal and interest when due and may require that the conditions for payment be renegotiated. All of these factors can make foreign investments more volatile than U.S. investments . EXPOSURE TO EMERGING MARKETS. Investments in emerging market securities include additional risks to those generally associated with foreign investing. The extent of economic development, political stability, and market depth varies widely in comparison to more developed nations. The economies of these countries may be subject to greater social, economic, and political uncertainties or may be based on only a few industries. All of these factors can make emerging market securities more volatile. DEBT SECURITIES. Bonds and other debt instruments are used by issuers to borrow money from investors. The issuer pays the investor a fixed or variable rate of interest, and must repay the amount borrowed at maturity. Some debt securities, such as zero coupon bonds, do not pay current interest, but are purchased at a discount from their face values. In general, bond prices rise when interest rates fall, and vice versa. Debt securities have varying degrees of quality and varying levels of sensitivity to changes in interest rates. Longer-term bonds are generally more sensitive to interest rate changes than short-term bonds. Lower-quality debt securities (sometimes called "junk bonds") are considered to have speculative characteristics and involve greater risk of default or price changes due to changes in the issuer's creditworthiness, or they may already be in default. The market prices of these securities may fluctuate more than higher-quality securities and may decline significantly in periods of general economic difficulty. The tables below and on page provide a summary of ratings assigned to debt holdings (not including money market instruments) in each fund's portfolio. The figures below are dollar-weighted averages of month-end portfolio holdings during fiscal 1995, and are presented as a percentage of total security investments. These percentages are historical and do not necessarily indicate a fund's current or future debt holdings. RESTRICTIONS: Purchase of a debt security is consistent with the fund's debt quality policy if it is rated at or above the stated level by Moody's or rated in the equivalent categories by S&P, or is unrated but judged to be of equivalent quality by FMR. Each fund currently intends to limit its investments in lower than Baa-quality debt securities to less than 35% of its assets.
Dollar Weighted Average % Debt Holdings Not Rated Directly or Indirectly by Moody's or S&P Investme Below nt Grade Investment Grade Canada Fund -- .56% Emerging Markets Fund -- 2.99 % Europe Fund -- .17% Europe Capital Appreciation Fund -- -- Japan Fund -- .27% Latin America Fund 1.00 1.34 % % Pacific Basin Fund -- 3.34 % Southeast Asia Fund .02% .31%
REPURCHASE AGREEMENTS. In a repurchase agreement, a fund buys a security at one price and simultaneously agrees to sell it back at a higher price. Delays or losses could result if the other party to the agreement defaults or becomes insolvent. FOREIGN REPURCHASE AGREEMENTS may be less well secured than U.S. repurchase agreements, and may be denominated in foreign currencies. They also may involve greater risk of loss if the counterparty defaults. Some counterparties in these transactions may be less creditworthy than those in U.S. markets. ADJUSTING INVESTMENT EXPOSURE. A fund can use various techniques to increase or decrease its exposure to changing security prices, interest rates, currency exchange rates, commodity prices, or other factors that affect security values. These techniques may involve derivative transactions such as buying and selling options and futures contracts, entering into currency exchange contracts or swap agreements, and purchasing indexed securities. FMR can use these practices to adjust the risk and return characteristics of a fund's portfolio of investments. If FMR judges market conditions incorrectly or employs a strategy that does not correlate well with the fund's investments, these techniques could result in a loss, regardless of whether the intent was to reduce risk or increase return. These techniques may increase the volatility of the fund and may involve a small investment of cash relative to the magnitude of the risk assumed. In addition, these techniques could result in a loss if the counterparty to the transaction does not perform as promised. DIRECT DEBT. Loans and other direct debt instruments are interests in amounts owed to another party by a company, government, or other borrower. They have additional risks beyond conventional debt securities because they may entail less legal protection for a fund, or there may be a requirement that a fund supply additional cash to a borrower on demand. FISCAL 1995 DEBT HOLDINGS, BY S&P RATING G S&P Canada Emerging Europe Europe Capital Japan Latin America Pacific Southeast Asia RATING Fund Markets Fund Fund Appreciation Fund Fund Fund Basin Fund Fund INVESTMENT GRADE Highest quality AAA High quality AA .23% .01% -- -- .11% -- -- -- Upper-medium grade A Medium grade BBB -- -- -- -- -- -- -- -- LOWER QUALITY Moderately speculative BB -- .01% -- -- -- -- -- -- Speculative B .05% -- -- -- -- -- -- -- Highly speculative CCC -- -- -- -- -- -- -- -- Poor quality CC,C -- -- -- -- -- -- -- -- Lowest quality, no interest D -- -- -- -- __ -- -- - -- In default, in arrears -- -- -- -- -- -- -- -- -- .28% .02% -- -- .11% -- -- -- FISCAL 1995 DEBT HOLDINGS, BY MOODY'S RATING H MOODY'S Canada Emerging Europe Europe Capital Japan Latin America Pacific Southeast Asia RATING Fund Markets Fund Fund Appreciation Fund Fund Fund Basin Fund Fund INVESTMENT GRADE Highest quality Aaa High quality Aa .23% .02% -- .11% .11% .01% .17% -- Upper-medium grade A Medium grade Baa .10% -- -- -- -- -- -- -- LOWER QUALITY Moderately speculative Ba -- -- -- -- -- .03% -- -- Speculative B .05% .06% -- -- -- .02% -- -- Highly speculative Caa -- -- -- -- -- -- -- -- Poor quality Ca -- -- -- -- -- -- -- -- Lowest quality, no interest C -- -- -- -- -- -- -- - -- In default, in arrears -- -- -- -- -- -- -- -- -- .38% .08% -- .11% .11% .06% .17% -- FOR SOME FOREIGN GOVERNMENT OBLIGATIONS, FMR HAS ASSIGNED THE RATINGS OF THE SOVEREIGN CREDIT OF THE ISSUING GOVERNMENT. THE DOLLAR-WEIGHTED AVERAGE OF DEBT SECURITIES NOT RATED DIRECTLY OR INDIRECTLY BY MOODY'S OR S&P ARE OUTLINED IN THE CHART ON PAGE . THIS MAY INCLUDE SECURITIES RATED BY OTHER NATIONALLY RECOGNIZED RATING SERVICES, AS WELL AS UNRATED SECURITIES. UNRATED SECURITIES ARE NOT NECESSARILY LOWER-QUALITY SECURITIES. REFER TO THE FUNDS' STATEMENT OF ADDITIONAL INFORMATION FOR A MORE COMPLETE DISCUSSION OF THESE RATINGS. ILLIQUID AND RESTRICTED SECURITIES. Some investments may be determined by FMR, under the supervision of the Board of Trustees, to be illiquid, which means that they may be difficult to sell promptly at an acceptable price. The sale of some illiquid securities and some other securities may be subject to legal restrictions. Difficulty in selling securities may result in a loss or may be costly to a fund. RESTRICTIONS: A fund may not purchase a security if, as a result, more than 15% of its assets would be invested in illiquid securities. OTHER INSTRUMENTS may include securities of closed-end investment companies and real estate-related investments. DIVERSIFICATION. Diversifying a fund's investment portfolio can reduce the risks of investing. This may include limiting the amount of money invested in any one issuer or, on a broader scale, in any one industry. A fund that is not diversified may be more sensitive to changes in the market value of a single issuer or industry. RESTRICTIONS: France Fund , Germany Fund, Hong Kong and China Fund , Japan Small Companies Fund , Nordic Fund , and United Kingdom Fund are considered non-diversified. Generally, to meet federal tax requirements at the close of each quarter, a fund does not invest more than 25% of its total assets in any one issuer and, with respect to 50% of total assets, does not invest more than 5% of its total assets in any one issuer. A fund may not invest more than 25% of its total assets in any one industry. These limitations do not apply to U.S. government securities. Canada Fund, Emerging Markets Fund , Europe Fund , Europe Capital Appreciation Fund , Japan Fund , Latin America Fund, Pacific Basin Fund , and Southeast Asia Fund are diversified funds. With respect to 75% of total assets, a fund may not invest more than 5% of its total assets in any one issuer. A fund may not invest more than 25% of its total assets in any one industry. These limitations do not apply to U.S. government securities. BORROWING. A fund may borrow from banks or from other funds advised by FMR, or through reverse repurchase agreements. If a fund borrows money, its share price may be subject to greater fluctuation until the borrowing is paid off. If the fund makes additional investments while borrowings are outstanding, this may be considered a form of leverage. RESTRICTIONS: A fund may borrow only for temporary or emergency purposes, but not in an amount exceeding 33% of its total assets. LENDING. Lending securities to broker-dealers and institutions, including Fidelity Brokerage Services, Inc. (FBSI), an affiliate of FMR, is a means of earning income. This practice could result in a loss or a delay in recovering a fund's securities. A fund may also lend money to other funds advised by FMR. RESTRICTIONS: Loans, in the aggregate, may not exceed 33% of a fund's total assets. FUNDAMENTAL INVESTMENT POLICIES AND RESTRICTIONS Some of the policies and restrictions discussed on the preceding pages are fundamental, that is, subject to change only by shareholder approval. The following paragraphs restate all those that are fundamental. All policies stated throughout this prospectus, other than those identified in the following paragraphs, can be changed without shareholder approval. CANADA FUND seeks growth of capital over the long term through investments in securities of issuers that have their principal activities in Canada or are registered in Canadian markets. EMERGING MARKETS FUND seeks capital appreciation. EUROPE FUND seeks growth of capital over the long-term through investments in securities of issuers that have their principal activities in Western Europe. Normally, at least 65% of the fund's total assets will be invested in such securities. In determining whether an issuer's principal activities are in Western Europe, FMR will look at such factors as the location of its assets, personnel, sales, and earnings. When allocating investments among geographic regions and individual countries, FMR will consider various criteria, such as the relative economic growth potential of the various economies and securities markets, expected levels of inflation, government policies influencing business conditions, and the outlook for currency relationships. When market conditions warrant, FMR can make substantial temporary defensive investments in U.S. government obligations or investment-grade debt obligations of companies incorporated in and having principal business activities in the U.S. EUROPE CAPITAL APPRECIATION FUND seeks long-term capital appreciation. FRANCE FUND seeks long-term growth of capital. GERMANY FUND seeks long-term growth of capital. HONG KONG AND CHINA FUND seeks long-term growth of capital. JAPAN FUND seeks long-term growth of capital. JAPAN SMALL COMPANIES FUND seeks long-term growth of capital. LATIN AMERICA FUND seeks high total investment return. NORDIC FUND seeks long-term growth of capital. PACIFIC BASIN FUND seeks growth of capital over the long-term through investments in securities of issuers that have their principal activities in the Pacific Basin Fund . Normally, at least 65% of the fund's total assets will be invested in such securities. In determining whether an issuer's principal activities are in the Pacific Basin, FMR will look at such factors as the location of its assets, personnel, sales, and earnings. When allocating investments among geographic regions and individual countries, FMR will consider various criteria, such as the relative economic growth potential of the various economies and securities markets, expected levels of inflation, government policies influencing business conditions, and the outlook for currency relationships. When market conditions warrant, FMR can make substantial temporary defensive investments in U.S. government obligations or investment-grade debt obligations of companies incorporated in, and having principal business activities in, the U.S. SOUTHEAST ASIA FUND seeks capital appreciation. UNITED KINGDOM FUND seeks long-term growth of capital. With respect to 75% of total assets, Canada Fund , Europe Fund, Emerging Markets Fund , Europe Capital Appreciation Fund , Japan Fund, Latin America Fund , Pacific Basin Fund , and Southeast Asia Fund may not invest more than 5% of total assets in any one issuer, and may not own more than 10% of the outstanding voting securities of a single issuer. Each fund may not invest more than 25% of its total assets in any one industry. Each fund may borrow only for temporary or emergency purposes, but not in an amount exceeding 33% of its total assets. Loans, in the aggregate, may not exceed 33% of total assets. BREAKDOWN OF EXPENSES Like all mutual funds, the funds pay fees related to their daily operations. Expenses paid out of a fund's assets are reflected in its share price or dividends; they are neither billed directly to shareholders nor deducted from shareholder accounts. Each fund pays a MANAGEMENT FEE to FMR for managing its investments and business affairs. FMR in turn pays fees to affiliates who provides assistance with these services. Each fund also pays OTHER EXPENSES, which are explained on page . FMR may, from time to time, agree to reimburse the funds for management fees and other expenses above a specified limit. FMR retains the ability to be repaid by a fund if expenses fall below the specified limit prior to the end of the fiscal year. Reimbursement arrangements, which may be terminated at any time without notice, can decrease a fund's expenses and boost its performance. MANAGEMENT FEE EMERGING MARKETS FUND, FRANCE FUND, GERMANY FUND, HONG KONG AND CHINA FUND, JAPAN SMALL COMPANIES FUND, LATIN AMERICA FUND , NORDIC FUND, AND UNITED KINGDOM FUND . The management fee is calculated and paid to FMR every month. The fee for each fund is calculated by adding a group fee rate to an individual fund fee rate, and multiplying the result by the respective fund's average net assets. The group fee rate is based on the average net assets of all the mutual funds advised by FMR. This rate cannot rise above .52%, and it drops as total assets under management increase. For October 1995, the group fee rate was . 3111 %. The individual fund fee rate is .45% for each fund. The total management fee for fiscal 1995 was . 77 % for Emerging Markets Fund and Latin America Fund . The estimated total management fee for fiscal 1996 is .76% for Japan Small Companies Fund. Before reimbursement, the estimated total management fee rate for fiscal 1996 is .76% for France Fund, Germany Fund, Hong Kong and China Fund, Nordic Fund, and United Kingdom Fund. The management fee rate for the se funds is higher than that of most domestic mutual funds, but not necessarily higher than that of the typical international fund. CANADA FUND, EUROPE FUND, EUROPE CAPITAL APPRECIATION FUND, JAPAN FUND, PACIFIC BASIN FUND, AND SOUTHEAST ASIA FUND. The management fee is calculated and paid to FMR every month. The amount of the fee is determined by taking a BASIC FEE and applying a PERFORMANCE ADJUSTMENT. The performance adjustment either increases or decreases the management fee, depending on how well the fund has performed relative to its benchmark index. Management = Basic +/- Performance fee fee adjustment THE BASIC FEE (calculated monthly) is calculated by adding a group fee rate to an individual fund fee rate, and multiplying the result by a fund's average net assets. The group fee rate is based on the average net assets of all the mutual funds advised by FMR. This rate cannot rise above .52%, and it drops as total assets under management increase. For October 1995, the group fee rate was .3111 %. The individual fund fee rate for each fund is .45%. The basic fee rate for fiscal 1995 was .76% for Canada Fund and Southeast Asia Fund and .77% for Europe Fund, Europe Capital Appreciation Fund, Japan Fund, and Pacific Basin Fund . THE PERFORMANCE ADJUSTMENT rate is calculated monthly by comparing each fund's performance to that of its benchmark index over the most recent 36-month period. The difference is translated into a dollar amount that is added to or subtracted from the basic fee. The maximum annualized performance adjustment rate is ".20%.
FUND BENCHMARK Canada Fund TSE 300 Index Europe Fund MSCI Europe Index Europe Capital Appreciation Fund MSCI Europe Index Japan Fund TOPIX Index Pacific Basin Fund MSCI Pacific Index Southeast Asia Fund MSCI Far East ex-Japan Free Index
Manage Fund ment Fee Canada Fund .72% Europe Fund .80% Europe Capital Appreciation Fund .85% Japan Fund .66% Pacific Basin Fund .79% Southeast Asia Fund .59% FMR HAS SUB-ADVISORY AGREEMENTS with three affiliates: FMR U.K., FMR Far East, and FIIA. FIIA in turn has a sub-advisory agreement with FIIAL U.K. In addition, FMR has sub-advisory agreements with FIJ on behalf of Japan Fund, Japan Small Companies Fund, and Hong Kong and China Fund. FMR U.K. focuses on issuers based in Europe. FMR Far East focuses on issuers based in Asia and the Pacific Basin. FIJ focuses on issuers based in Japan and elsewhere around the world. FIIA focuses on issuers based in Hong Kong, Australia, New Zealand, and Southeast Asia (other than Japan). FIIAL U.K. focuses on issuers based in the United Kingdom and Europe. The sub-advisers are compensated for providing investment research and advice. FMR pays FMR U.K. and FMR Far East fees equal to 110% and 105%, respectively, of the costs of providing these services. FMR pays FIJ and FIIA 30% of its management fee associated with investments for which the sub-adviser provided investment advice. FIIA pays FIIAL U.K. a fee equal to 110% of the cost of providing these services. The sub-advisers may also provide investment management services. In return, FMR pays FMR U.K., FMR Far East, FIJ, and FIIA a fee equal to 50% of its management fee rate with respect to a fund's investments that the sub-adviser manages on a discretionary basis. FIIA pays FIIAL U.K. a fee equal to 110% of the cost of providing these services. OTHER EXPENSES While the management fee is a significant component of the funds' annual operating costs, the funds have other expenses as well. The funds contract with FSC to perform many transaction and accounting functions. These services include processing shareholder transactions, valuing each fund's investments, and handling securities loans. In fiscal 1995 the funds paid FSC the fees outlined in the following chart: Fee to Fund FSC Canada Fund 0.3 % Emerging Markets Fund 0.4% Europe Fund 0.3 % Europe Capital Appreciation Fund 0.4 % Japan Fund 0.4 % Latin America Fund 0.4% Pacific Basin Fund 0.4 % Southeast Asia Fund 0.3 % The funds also pay other expenses, such as legal, audit, and custodian fees; proxy solicitation costs; and the compensation of trustees who are not affiliated with Fidelity. A broker-dealer may use a portion of the commissions paid by a fund to reduce the fund's custodian or transfer agent fees. For fiscal 1995, the p ortfolio turnover rates are outlined in the table below. For fiscal 1996 (the first fiscal year) t he estimated portfolio turnover rate for France Fund, Germany Fund , Hong Kong and China Fund , Japan Small Companies Fund, Nordic Fund, and United Kingdom Fund is not expected to exceed 200%. These rates vary from year to year. High turnover rates increase transaction costs, and may increase taxable capital gains. FMR considers these effects when evaluating the anticipated benefits of short-term investing. Fund Turnover % Canada Fund 75 % Emerging Markets Fund 78% Europe Fund 38 % Europe Capital Appreciation Fund 176 % Japan Fund 86 % Latin America Fund 57% Pacific Basin Fund 65 % Southeast Asia Fund 94 % YOUR ACCOUNT DOING BUSINESS WITH FIDELITY Fidelity Investments was established in 1946 to manage one of America's first mutual funds. Today, Fidelity is the largest mutual fund company in the country, and is known as an innovative provider of high-quality financial services to individuals and institutions. In addition to its mutual fund business, the company operates one of America's leading discount brokerage firms, FBSI. Fidelity is also a leader in providing tax-sheltered retirement plans for individuals investing on their own or through their employer. Fidelity is committed to providing investors with practical information to make investment decisions. Based in Boston, Fidelity provides customers with complete service 24 hours a day, 365 days a year, through a network of telephone service centers around the country. To reach Fidelity for general information, call these numbers: (small solid bullet) For mutual funds, 1-800-544-8888 (small solid bullet) For brokerage, 1-800-544-7272 If you would prefer to speak with a representative in person, Fidelity has over 80 walk-in Investor Centers across the country. TYPES OF ACCOUNTS You may set up an account directly in a fund or, if you own or intend to purchase individual securities as part of your total investment portfolio, you may consider investing in a fund through a brokerage account. If you are investing through FBSI or another financial institution or investment professional, refer to its program materials for any special provisions regarding your investment in the fund. The different ways to set up (register) your account with Fidelity are listed at right. The account guidelines that follow may not apply to certain retirement accounts. If your employer offers a fund through a retirement program, contact your employer for more information. Otherwise, call Fidelity directly. WAYS TO SET UP YOUR ACCOUNT INDIVIDUAL OR JOINT TENANT FOR YOUR GENERAL INVESTMENT NEEDS Individual accounts are owned by one person. Joint accounts can have two or more owners (tenants). RETIREMENT TO SHELTER YOUR RETIREMENT SAVINGS FROM TAXES Retirement plans allow individuals to shelter investment income and capital gains from current taxes. In addition, contributions to these accounts may be tax deductible. Retirement accounts require special applications and typically have lower minimums. INDIVIDUAL RETIREMENT ACCOUNTS (IRAS) allow anyone of legal age and under 70 with earned income to save up to $2,000 per tax year. Individuals can also invest in a spouse's IRA if the spouse has earned income of less than $250. ROLLOVER IRAS retain special tax advantages for certain distributions from employer-sponsored retirement plans. KEOGH OR CORPORATE PROFIT SHARING AND MONEY PURCHASE PENSION PLANS allow self-employed individuals or small business owners (and their employees) to make tax deductible contributions for themselves and any eligible employees up to $30,000 per year. SIMPLIFIED EMPLOYEE PENSION PLANS (SEP-IRAS) provide small business owners or those with self-employed income (and their eligible employees) with many of the same advantages as a Keogh, but with fewer administrative requirements. 403(B) CUSTODIAL ACCOUNTS are available to employees of most tax-exempt institutions, including schools, hospitals, and other charitable organizations. 401(K) PROGRAMS allow employees of corporations of all sizes to contribute a percentage of their wages on a tax-deferred basis. These accounts need to be established by the trustee of the plan. GIFTS OR TRANSFERS TO A MINOR (UGMA, UTMA) TO INVEST FOR A CHILD'S EDUCATION OR OTHER FUTURE NEEDS These custodial accounts provide a way to give money to a child and obtain tax benefits. An individual can give up to $10,000 a year per child without paying federal gift tax. Depending on state laws, you can set up a custodial account under the Uniform Gifts to Minors Act (UGMA) or the Uniform Transfers to Minors Act (UTMA). TRUST FOR MONEY BEING INVESTED BY A TRUST The trust must be established before an account can be opened. BUSINESS OR ORGANIZATION FOR INVESTMENT NEEDS OF CORPORATIONS, ASSOCIATIONS, PARTNERSHIPS, INSTITUTIONS, OR OTHER GROUPS Requires a special application. HOW TO BUY SHARES ONCE EACH BUSINESS DAY, TWO SHARE PRICES ARE CALCULATED FOR EACH FUND: the offering price and the net asset value (NAV). If you qualify for a waiver as described on page , your share price will be the offering price. If you pay a sales charge, or qualify for a reduction as described on page , your share price will be the offering price. When you buy shares at the offering price, Fidelity deducts the appropriate sales charge and invests the rest in the fund. Shares are purchased at the next share price calculated after your investment is received and accepted. Share price is normally calculated at 4 p.m. Eastern time. IF YOU ARE NEW TO FIDELITY, complete and sign an account application and mail it along with your check. You may also open your account in person or by wire as described on page . If there is no application accompanying this prospectus, call 1-800-544-8888. IF YOU ALREADY HAVE MONEY INVESTED IN A FIDELITY FUND, you can: (small solid bullet) Mail in an application with a check, or (small solid bullet) Open your account by exchanging from another Fidelity fund. IF YOU ARE INVESTING THROUGH A TAX-SHELTERED RETIREMENT PLAN, such as an IRA, for the first time, you will need a special application. Retirement investing also involves its own investment procedures. Call 1-800-544-8888 for more information and a retirement application. If you buy shares by check or Fidelity Money Line(registered trademark), and then sell those shares by any method other than by exchange to another Fidelity fund, the payment may be delayed for up to seven business days to ensure that your previous investment has cleared. MINIMUM INVESTMENTS TO OPEN AN ACCOUNT $2,500 For Fidelity retirement accounts $500 TO ADD TO AN ACCOUNT $250 For Fidelity retirement accounts $250 Through automatic investment plans $100 MINIMUM BALANCE $1,000 For Fidelity retirement accounts $500 These minimums may vary for investments through Fidelity Portfolio Advisory Services. Refer to the program material for details. Key Information Phone 1#800#544#7777 S To open an account, exchange from another Fidelity fund account with the same registration, including name, address, and taxpayer ID number. S To add to an account, exchange from another Fidelity fund account with the same registration, including name, address, and taxpayer ID number. You can also use Fidelity Money Line to transfer from your bank account. Call before your first use to verify that this service is in place on your account. Maximum Money Line: $50,000. Mail S To open an account, complete and sign the application. Make your check payable to the complete name of the fund of your choice. Mail to the address indicated on the application. S To add to an account, make your check payable to the complete name of the fund. Indicate your fund account number on your check. Mail to the address printed on your account statement. S Exchange by mail: Call 1#800#544#6666 for instructions. In Person S To open an account, bring your application and check to a Fidelity Investor Center. Call 1#800#544#9797 for the center nearest you. S To add to an account, bring your check to a Fidelity Investor Center. Call 1#800#544#9797 for the center nearest you. (null)Wire Not available for retirement accounts. S To open an account, call 1#800#544#7777 to set up your account and to arrange a wire transaction. Wire within 24 hours to the wire address below. Specify the complete name of the fund and include your new account number and your name. S To add to an account, wire to the wire address below. Specify the complete name of the fund and include your account number and your name. S Wire address: Bankers Trust Company, Bank Routing #021001033, Account # 00163053. Automatically New accounts cannot be opened with these services. S Use Fidelity Automatic Account Builder or Direct Deposit to automatically purchase more shares. Sign up for these services when opening your account, or call 1#800#544#6666. S Use Directed Dividends or Fidelity Automatic Exchange Service to automatically send money from one Fidelity fund into another. Call 1#800#544#6666 for instructions. TDD - Service for the Deaf and Hearing#Impaired: 1#800#544#0118 (null) How to Sell Shares You can arrange to take money out of your fund account at any time by selling (redeeming) some or all of your shares. Your shares will be sold at the next share price calculated after your order is received and accepted. Share price is normally calculated at 4 p.m. Eastern time. To sell shares in a non#retirement account, you may use any of the methods described on these two pages. To sell shares in a Fidelity retirement account, your request must be made in writing, except for exchanges to other Fidelity funds, which can be requested by phone or in writing. Call 1#800#544#6666 for a retirement distribution form. If you are selling some but not all of your shares, leave at least $1,000 worth of shares in the account to keep it open ($500 for retirement accounts). To sell shares by bank wire or Fidelity Money Line, you will need to sign up for these services in advance. Certain requests must include a signature guarantee. It is designed to protect you and Fidelity from fraud. Your request must be made in writing and include a signature guarantee if any of the following situations apply: S You wish to redeem more than $100,000 worth of shares, S Your account registration has changed within the last 30 days, S The check is being mailed to a different address than the one on your account (record address), S The check is being made payable to someone other than the account owner, or S The redemption proceeds are being transferred to a Fidelity account with a different registration. You should be able to obtain a signature guarantee from a bank, broker (including Fidelity Investor Centers), dealer, credit union (if authorized under state law), securities exchange or association, clearing agency, or savings association. A notary public cannot provide a signature guarantee. Selling Shares in Writing Write a "letter of instruction" with: S Your name, S The fund's name, S Your fund account number, S The dollar amount or number of shares to be redeemed, and S Any other applicable requirements listed in the table at right. Unless otherwise instructed, Fidelity will send a check to the record address. Deliver your letter to a Fidelity Investor Center, or mail it to: Fidelity Investments P.O. Box 660602 Dallas, TX 75266#0602 Fees and Key Information If you sell shares of Emerging Markets Fund, France Fund, Germany Fund, Japan Small Companies Fund, Hong Kong and China Fund, Latin America Fund, Nordic Fund, Southeast Asia Fund, and United Kingdom Fund after holding them less than 90 days, the fund will deduct a redemption fee equal to 1.50% of the value of those shares. If you sell shares of Japan Fund, Europe Fund, Europe Capital Appreciation Fund, and Canada Fund after holding them less than 90 days, the fund will deduct a redemption fee equal to 1.00% of the value of the shares. As of February 1, 1996 if you sell shares of Japan Fund and Canada Fund after holding them less than 90 days, the fund will deduct a redemption fee equal to 1.50% of the value of those shares. Phone 1#800#544#7777 All account types except retirement S Maximum check request: $100,000. S For Money Line transfers to your bank account; minimum: $10; maximum: $100,000. All account types S You may exchange to other Fidelity funds if both accounts are registered with the same name(s), address, and taxpayer ID number. Mail or in Person Individual, Joint Tenants, Sole Proprietorships, UGMA, UTMA S The letter of instruction must be signed by all persons required to sign for transactions, exactly as their names appear on the account. Retirement accounts S The account owner should complete a retirement distribution form. Call 1#800#544#6666 to request one. Trusts S The trustee must sign the letter indicating capacity as trustee. If the trustee's name is not in the account registration, provide a copy of the trust document certified within the last 60 days. Businesses or Organizations S At least one person authorized by corporate resolution to act on the account must sign the letter. S Include a corporate resolution with corporate seal or a signature guarantee. Executors, Administrators, Conservators, Guardians S Call 1#800#544#6666 for instructions. Wire All account types except retirement S You must sign up for the wire feature before using it. To verify that it is in place, call 1#800#544#6666. Minimum wire: $5,000. S Your wire redemption request must be received by Fidelity before 4 p.m. Eastern time for money to be wired on the next business day. TDD - Service for the Deaf and Hearing#Impaired: 1#800#544#0118 YOUR ACCOUNT INVESTOR SERVICES Fidelity provides a variety of services to help you manage your account. INFORMATION SERVICES FIDELITY'S TELEPHONE REPRESENTATIVES are available 24 hours a day, 365 days a year. Whenever you call, you can speak with someone equipped to provide the information or service you need. STATEMENTS AND REPORTS that Fidelity sends to you include the following: (small solid bullet) Confirmation statements (after every transaction, except reinvestments, that affects your account balance or your account registration) (small solid bullet) Account statements (quarterly) (small solid bullet) Financial reports (every six months) To reduce expenses, only one copy of most financial reports will be mailed to your household, even if you have more than one account in the fund. Call 1-800-544-6666 if you need copies of financial reports or historical account information. TRANSACTION SERVICES EXCHANGE PRIVILEGE. You may sell your fund shares and buy shares of other Fidelity funds by telephone or in writing. The shares you exchange will carry credit for any sales charge you previously paid in connection with their purchase. Note that exchanges out of a fund are limited to four per calendar year, and that they may have tax consequences for you. For details on policies and restrictions governing exchanges, including circumstances under which a shareholder's exchange privilege may be suspended or revoked, see page . SYSTEMATIC WITHDRAWAL PLANS let you set up periodic redemptions from your account. Because of the funds' sales charge, you may not want to set up a systematic withdrawal plan during a period when you are buying shares on a regular basis. FIDELITY MONEY LINE(registered trademark) enables you to transfer money by phone between your bank account and your fund account. Most transfers are complete within three business days of your call. 24-HOUR SERVICE ACCOUNT ASSISTANCE 1-800-544-6666 ACCOUNT BALANCES 1-800-544-7544 ACCOUNT TRANSACTIONS 1-800-544-7777 PRODUCT INFORMATION 1-800-544-8888 QUOTES 1-800-544-8544 RETIREMENT ACCOUNT ASSISTANCE 1-800-544-4774 AUTOMATED SERVICE (checkmark) REGULAR INVESTMENT PLANS One easy way to pursue your financial goals is to invest money regularly. Fidelity offers convenient services that let you transfer money into your fund account, or between fund accounts, automatically. While regular investment plans do not guarantee a profit and will not protect you against loss in a declining market, they can be an excellent way to invest for retirement, a home, educational expenses, and other long-term financial goals. Certain restrictions apply for retirement accounts. Call 1-800-544-6666 for more information. REGULAR INVESTOR PLANS FIDELITY AUTOMATIC ACCOUNT BUILDER SM TO MOVE MONEY FROM YOUR BANK ACCOUNT TO A FIDELITY FUND MINIMUM FREQUENCY SETTING UP OR CHANGING $100 Monthly or (small solid bullet) For a new account, quarterly complete the appropriate section on the fund application. (small solid bullet) For existing accounts, call 1-800-544-6666 for an application. (small solid bullet) To change the amount or frequency of your investment, call 1-800- 544-6666 at least three business days prior to your next scheduled investment date. DIRECT DEPOSIT TO SEND ALL OR A PORTION OF YOUR PAYCHECK OR GOVERNMENT CHECK TO A FIDELITY FUNDA MINIMUM FREQUENCY SETTING UP OR CHANGING $100 Every pay (small solid bullet) Check the period appropriate box on the fund application, or call 1-800-544-6666 for an authorization form. (small solid bullet) Changes require a new authorization form. FIDELITY AUTOMATIC EXCHANGE SERVICE TO MOVE MONEY FROM A FIDELITY MONEY MARKET FUND TO ANOTHER FIDELITY FUND MINIMUM FREQUENCY SETTING UP OR CHANGING $100 Monthly, (small solid bullet) To establish, call bimonthly, 1-800-544-6666 quarterly, or after both accounts annually are opened. (small solid bullet) To change the amount or frequency of your investment, call 1-800-544-6666. A BECAUSE THEIR SHARE PRICES FLUCTUATE, THESE FUNDS MAY NOT BE APPROPRIATE CHOICES FOR DIRECT DEPOSIT OF YOUR ENTIRE CHECK. SHAREHOLDER AND ACCOUNT POLICIES DIVIDENDS, CAPITAL GAINS, AND TAXES Each fund distributes substantially all of its net income and capital gains to shareholders each year. Normally, dividends and capital gains are distributed in December. DISTRIBUTION OPTIONS When you open an account, specify on your application how you want to receive your distributions. If the option you prefer is not listed on the application, call 1-800-544-6666 for instructions. Each fund offers four options: 1. REINVESTMENT OPTION. Your dividend and capital gain distributions will be automatically reinvested in additional shares of the fund. If you do not indicate a choice on your application, you will be assigned this option. 2. INCOME-EARNED OPTION. Your capital gain distributions will be automatically reinvested, but you will be sent a check for each dividend distribution. 3. CASH OPTION. You will be sent a check for your dividend and capital gain distributions. 4. DIRECTED DIVIDENDS(registered trademark) OPTION. Your dividend and capital gain distributions will be automatically invested in another identically registered Fidelity fund. FOR RETIREMENT ACCOUNTS, all distributions are automatically reinvested. When you are over 59 years old, you can receive distributions in cash. SHARES PURCHASED THROUGH REINVESTMENT of dividend and capital gain distributions are not subject to the funds' 3% sales charge. Likewise, if you direct distributions to a fund with a 3% sales charge, you will not pay a sales charge on those purchases. UNDERSTANDING DISTRIBUTIONS As a fund shareholder, you are entitled to your share of the fund's net income and gains on its investments. The fund passes these earnings along to its investors as DISTRIBUTIONS. Each fund earns dividends from stocks and interest from bond, money market and other investments. These are passed along as DIVIDEND DISTRIBUTIONS. A fund realizes capital gains whenever it sells securities for a higher price than it paid for them. These are passed along as CAPITAL GAIN DISTRIBUTIONS. (checkmark) When a fund deducts a distribution from its NAV, the reinvestment price is the fund's NAV at the close of business that day. Cash distribution checks will be mailed within seven days. TAXES As with any investment, you should consider how your investment in a fund will be taxed. If your account is not a tax-deferred retirement account, you should be aware of these tax implications. TAXES ON DISTRIBUTIONS. Distributions are subject to federal income tax, and may also be subject to state or local taxes. If you live outside the United States, your distributions could also be taxed by the country in which you reside. Your distributions are taxable when they are paid, whether you take them in cash or reinvest them. However, distributions declared in December and paid in January are taxable as if they were paid on December 31. For federal tax purposes, each fund's income and short-term capital gain distributions are taxed as dividends; long-term capital gain distributions are taxed as long-term capital gains. Every January, Fidelity will send you and the IRS a statement showing the taxable distributions paid to you in the previous year. TAXES ON TRANSACTIONS. Your redemptions - including exchanges to other Fidelity funds - are subject to capital gains tax. A capital gain or loss is the difference between the cost of your shares and the price you receive when you sell them. Whenever you sell shares of a fund, Fidelity will send you a confirmation statement showing how many shares you sold and at what price. You will also receive a consolidated transaction statement every January. However, it is up to you or your tax preparer to determine whether this sale resulted in a capital gain and, if so, the amount of tax to be paid. Be sure to keep your regular account statements; the information they contain will be essential in calculating the amount of your capital gains. "BUYING A DIVIDEND." If you buy shares just before a fund deducts a distribution from its NAV, you will pay the full price for the shares and then receive a portion of the price back in the form of a taxable distribution. CURRENCY CONSIDERATIONS. If a fund's dividends exceed its taxable income in any year, which is sometimes the result of currency-related losses, all or a portion of the fund's dividends may be treated as a return of capital to shareholders for tax purposes. To minimize the risk of a return of capital, the funds may adjust their dividends to take currency fluctuations into account, which may cause the dividends to vary. Any return of capital will reduce the cost basis of your shares, which will result in a higher reported capital gain or a lower reported capital loss when you sell your shares. The statement you receive in January will specify if any distributions included a return of capital. EFFECT OF FOREIGN TAXES. Foreign governments may impose taxes on a fund and its investments and these taxes generally will reduce the fund's distributions. However, an offsetting tax credit or deduction may be available to you. If so, your tax statement will show more taxable income or capital gains than were actually distributed by the fund, but will also show the amount of the available offsetting credit or deduction. There are tax requirements that all funds must follow in order to avoid federal taxation. In its effort to adhere to these requirements, a fund may have to limit its investment activity in some types of instruments. TRANSACTION DETAILS THE FUNDS ARE OPEN FOR BUSINESS each day the New York Stock Exchange (NYSE) is open. Fidelity normally calculates each fund's NAV and offering price as of the close of business of the NYSE, normally 4 p.m. Eastern time. EACH FUND'S NAV is the value of a single share. The NAV is computed by adding the value of the fund's investments, cash, and other assets, subtracting its liabilities, and then dividing the result by the number of shares outstanding. Each fund's assets are valued primarily on the basis of market quotations. Foreign securities are valued on the basis of quotations from the primary market in which they are traded, and are translated from the local currency into U.S. dollars using current exchange rates. If quotations are not readily available, or if the values have been materially affected by events occurring after the closing of a foreign market, assets are valued by a method that the Board of Trustees believes accurately reflects fair value. EACH FUND'S OFFERING PRICE (price to buy one share) is the fund's NAV divided by the sum of one minus the sales charge percentage . The sales charge is 3% of the offering price. The REDEMPTION PRICE (price to sell one share) is the fund's NAV. WHEN YOU SIGN YOUR ACCOUNT APPLICATION, you will be asked to certify that your Social Security or taxpayer identification number is correct and that you are not subject to 31% backup withholding for failing to report income to the IRS. If you violate IRS regulations, the IRS can require a fund to withhold 31% of your taxable distributions and redemptions. YOU MAY INITIATE MANY TRANSACTIONS BY TELEPHONE. Fidelity may only be liable for losses resulting from unauthorized transactions if it does not follow reasonable procedures designed to verify the identity of the caller. Fidelity will request personalized security codes or other information, and may also record calls. You should verify the accuracy of your confirmation statements immediately after you receive them. If you do not want the ability to redeem and exchange by telephone, call Fidelity for instructions. IF YOU ARE UNABLE TO REACH FIDELITY BY PHONE (for example, during periods of unusual market activity), consider placing your order by mail or by visiting a Fidelity Investor Center. EACH FUND RESERVES THE RIGHT TO SUSPEND THE OFFERING OF SHARES for a period of time. Each fund also reserves the right to reject any specific purchase order, including certain purchases by exchange. See "Exchange Restrictions" on page . Purchase orders may be refused if, in FMR's opinion, they would disrupt management of a fund. WHEN YOU PLACE AN ORDER TO BUY SHARES, your order will be processed at the next offering price calculated after your order is received and accepted. Note the following: (small solid bullet) All of your purchases must be made in U.S. dollars and checks must be drawn on U.S. banks. (small solid bullet) Fidelity does not accept cash. (small solid bullet) When making a purchase with more than one check, each check must have a value of at least $50. (small solid bullet) Each fund reserves the right to limit the number of checks processed at one time. (small solid bullet) If your check does not clear, your purchase will be cancelled and you could be liable for any losses or fees a fund or its transfer agent has incurred. TO AVOID THE COLLECTION PERIOD associated with check and Money Line purchases, consider buying shares by bank wire, U.S. Postal money order, U.S. Treasury check, Federal Reserve check, or direct deposit instead. YOU MAY BUY SHARES OF THE FUNDS (AT THE OFFERING PRICE) OR SELL THEM THROUGH A BROKER, who may charge you a fee for this service. If you invest through a broker or other institution, read its program materials for any additional service features or fees that may apply. CERTAIN FINANCIAL INSTITUTIONS that have entered into sales agreements with FDC may enter confirmed purchase orders on behalf of customers by phone, with payment to follow no later than the time when a fund is priced on the following business day. If payment is not received by that time, the financial institution could be held liable for resulting fees or losses. WHEN YOU PLACE AN ORDER TO SELL SHARES, your shares will be sold at the next NAV calculated after your request is received and accepted. Note the following: (small solid bullet) Normally, redemption proceeds will be mailed to you on the next business day, but if making immediate payment could adversely affect a fund, it may take up to seven days to pay you. (small solid bullet) Fidelity Money Line redemptions generally will be credited to your bank account on the second or third business day after your phone call. (small solid bullet) Each fund may hold payment on redemptions until it is reasonably satisfied that investments made by check or Fidelity Money Line have been collected, which can take up to seven business days. (small solid bullet) Redemptions may be suspended or payment dates postponed when the NYSE is closed (other than weekends or holidays), when trading on the NYSE is restricted, or as permitted by the SEC. THE REDEMPTION FEE, if applicable, will be deducted from the amount of your redemption. This fee is paid to the fund rather than FMR, and it does not apply to shares that were acquired through reinvestment of distributions. If shares you are redeeming were not all held for the same length of time, those shares you held longest will be redeemed first for purposes of determining whether the fee applies. FIDELITY RESERVES THE RIGHT TO DEDUCT AN ANNUAL MAINTENANCE FEE of $12.00 from accounts with a value of less than $2,500 (including any amount paid as a sales charge), subject to an annual maximum charge of $60.00 per shareholder. It is expected that accounts will be valued on the second Friday in November of each year. Accounts opened after September 30 will not be subject to the fee for that year. The fee, which is payable to the transfer agent, is designed to offset in part the relatively higher costs of servicing smaller accounts. The fee will not be deducted from retirement accounts (except non-prototype retirement accounts), accounts using regular investment plans, or if total assets in Fidelity funds exceed $50,000. Eligibility for the $50,000 waiver is determined by aggregating Fidelity mutual fund accounts maintained by FSC or FBSI which are registered under the same social security number or which list the same social security number for the custodian of a Uniform Gifts/Transfers to Minors Act account. IF YOUR ACCOUNT BALANCE FALLS BELOW $1,000, you will be given 30 days' notice to reestablish the minimum balance. If you do not increase your balance, Fidelity reserves the right to close your account and send the proceeds to you. Your shares will be redeemed at the NAV on the day your account is closed. FIDELITY MAY CHARGE A FEE FOR SPECIAL SERVICES, such as providing historical account documents, that are beyond the normal scope of its services. FDC collects the proceeds from each fund's 3% sales charge and may pay a portion of them to securities dealers who have sold the fund's shares, or to others, including banks and other financial institutions (qualified recipients), under special arrangements in connection with FDC's sales activities. The sales charge paid to qualified recipients is 1.50 % of a fund's offering price. FDC may, at its own expense, provide promotional incentives to qualified recipients who support the sale of shares of the funds without reimbursement from the funds. In some instances, these incentives may be offered only to certain institutions whose representatives provide services in connection with the sale or expected sale of significant amounts of shares. EXCHANGE RESTRICTIONS As a shareholder, you have the privilege of exchanging shares of a fund for shares of other Fidelity funds. However, you should note the following: (small solid bullet) The fund you are exchanging into must be registered for sale in your state. (small solid bullet) You may only exchange between accounts that are registered in the same name, address, and taxpayer identification number. (small solid bullet) Before exchanging into a fund, read its prospectus. (small solid bullet) If you exchange into a fund with a sales charge, you pay the percentage-point difference between that fund's sales charge and any sales charge you have previously paid in connection with the shares you are exchanging. For example, if you had already paid a sales charge of 2% on your shares and you exchange them into a fund with a 3% sales charge, you would pay an additional 1% sales charge. (small solid bullet) Exchanges may have tax consequences for you. (small solid bullet) Because excessive trading can hurt fund performance and shareholders, each fund reserves the right to temporarily or permanently terminate the exchange privilege of any investor who makes more than four exchanges out of the fund per calendar year. Accounts under common ownership or control, including accounts with the same taxpayer identification number, will be counted together for purposes of the four exchange limit. (small solid bullet) The exchange limit may be modified for accounts in certain institutional retirement plans to conform to plan exchange limits and Department of Labor regulations. See your plan materials for further information. (small solid bullet) Each fund reserves the right to refuse exchange purchases by any person or group if, in FMR's judgment, the fund would be unable to invest the money effectively in accordance with its investment objective and policies, or would otherwise potentially be adversely affected. (small solid bullet) Your exchanges may be restricted or refused if a fund receives or anticipates simultaneous orders affecting significant portions of the fund's assets. In particular, a pattern of exchanges that coincides with a "market timing" strategy may be disruptive to a fund. Although the funds will attempt to give you prior notice whenever they are reasonably able to do so, they may impose these restrictions at any time. The funds reserve the right to terminate or modify the exchange privilege in the future. OTHER FUNDS MAY HAVE DIFFERENT EXCHANGE RESTRICTIONS, and may impose administrative fees of up to $7.50 and redemption fees of up to 1.50% on exchanges. Check each fund's prospectus for details. SALES CHARGE REDUCTIONS AND WAIVERS REDUCTIONS. A fund's sales charge may be reduced if you invest directly with Fidelity or through prototype or prototype-like retirement plans sponsored by FMR or FMR Corp. The amount you invest, plus the value of your account, must fall within the ranges shown below. However, purchases made with assistance or intervention from a financial intermediary are not eligible. Call Fidelity to see if your purchase qualifies.
Sales Charge Ranges (as a % of offering price) (as approximate % of net amount invested) $0 - 249,999 3% 3.09% $250,000 - 499,999 2% 2.04% $500,000 - 999,999 1% 1.01% $1,000,000 or more none none
The sales charge will also be reduced by the percentage of any sales charge you previously paid on investments in other Fidelity funds (not including Fidelity's Foreign Currency Funds). Similarly, your shares carry credit for any sales charge you would have paid if the reductions in the table above had not existed. These sales charge credits only apply to purchases made in one of the ways listed below, and only if you continuously owned Fidelity fund shares or a Fidelity brokerage core account, or participated in The CORPORATEplan for Retirement Program. 1. By exchange from another Fidelity fund (except for Fidelity Foreign Currency Funds) . 2. With proceeds of a transaction within a Fidelity brokerage core account, including any free credit balance, core money market fund, or margin availability, to the extent such proceeds were derived from redemption proceeds from another Fidelity fund. 3. With redemption proceeds from one of Fidelity's Foreign Currency Funds, if the Foreign Currency Fund shares were originally purchased with redemption proceeds from a Fidelity fund. 4. Through the Directed Dividends Option (see page ). 5. By participants in The CORPORATEplan for Retirement Program when shares are purchased through plan-qualified loan repayments, and for exchanges into and out of the Managed Income Portfolio. WAIVERS. A fund's sales charge will not apply: 1. If you buy shares as part of an employee benefit plan having more than 200 eligible employees or a minimum of $3 million in plan assets invested in Fidelity mutual funds. 2. To shares in a Fidelity Rollover IRA account purchased with the proceeds of a distribution from an employee benefit plan, provided that at the time of the distribution, the employer or its affiliate maintained a plan that both qualified for waiver (1) above and had at least some of its assets invested in Fidelity-managed products. 3. If you are a charitable organization (as defined in Section 501(c)(3) of the Internal Revenue Code) investing $100,000 or more. 4. If you purchase shares for a charitable remainder trust or life income pool established for the benefit of a charitable organization (as defined by Section 501(c)(3) of the Internal Revenue Code). 5. If you are an investor participating in the Fidelity Trust Portfolios program. 6. To shares purchased through Portfolio Advisory Services or Fidelity C haritable Advisory Services. 7. If you are a current or former trustee or officer of a Fidelity fund or a current or retired officer, director, or regular employee of FMR Corp. or its direct or indirect subsidiaries (a Fidelity Trustee or employee), the spouse of a Fidelity trustee or employee, a Fidelity trustee or employee acting as custodian for a minor child, or a person acting as trustee of a trust for the sole benefit of the minor child of a Fidelity trustee or employee. 8. If you are a bank trust officer, registered representative, or other employee of a qualified recipient, as defined on page . 9. To contributions and exchanges to a prototype or prototype-like retirement plan sponsored by FMR Corp. or FMR and which is marketed and distributed directly to plan sponsors or participants without any assistance or intervention from any intermediary distribution channel. 10. If you invest through a non-prototype pension or profit-sharing plan that maintains all of its mutual fund assets in Fidelity mutual funds, provided the plan executes a Fidelity non-prototype sales charge waiver request form confirming its qualification. 11. If you are a registered investment adviser (RIA) purchasing for your discretionary accounts, provided you execute a Fidelity RIA load waiver agreement which specifies certain aggregate minimum and operating provisions. Except for correspondents of National Financial Services Corporation, this waiver is available only for shares purchased directly from Fidelity, and is unavailable if the RIA is part of an organization principally engaged in the brokerage business. 12. If you are a trust institution or bank trust department purchasing for your non-discretionary, non-retirement fiduciary accounts, provided you execute a Fidelity Trust load waiver agreement which specifies certain aggregate minimum and operating provisions. This waiver is available only for shares purchased either directly from Fidelity or through a bank-affiliated broker, and is unavailable if the trust department or institution is part of an organization not principally engaged in banking or trust activities. These waivers must be qualified through FDC in advance. More detailed information about waivers (1), (2), (5), (9) , and (11) is contained in the Statement of Additional Information. A representative of your plan or organization should call Fidelity for more information. FIDELITY'S TARGETED INTERNATIONAL EQUITY FUNDS FIDELITY CANADA FUND, FIDELITY EMERGING MARKETS FUND, FIDELITY EUROPE FUND, FIDELITY EUROPE CAPITAL APPRECIATION FUND, FIDELITY FRANCE FUND, FIDELITY GERMANY FUND, FIDELITY HONG KONG AND CHINA FUND, FIDELITY JAPAN FUND, FIDELITY JAPAN SMALL COMPANIES FUND, FIDELITY LATIN AMERICA FUND, FIDELITY NORDIC FUND, FIDELITY PACIFIC BASIN FUND, FIDELITY SOUTHEAST ASIA FUND, FIDELITY UNITED KINGDOM FUND FUNDS OF FIDELITY INVESTMENT TRUST SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION DATED DECEMBER 30, 1995 The unaudited Financial Statements and Financial Highlights included in the SemiAnnual Report for Fidelity France Fund, Fidelity Germany Fund, Fidelity Hong Kong and China Fund, Fidelity Japan Small Companies Fund, Fidelity Nordic Fund, and Fidelity United Kingdom Fund for the period November 1, 1995 (commencement of operations) to April 30, 1996 are incorporated herein by reference. The following information replaces the similar information found in the "Description of the Trust" section on page 64. CUSTODIAN. Chase Manhattan Bank, N.A., 1211 Avenue of the Americas, New York, New York, is custodian of the assets of Emerging Markets Fund, Europe Fund, Europe Capital Appreciation Fund, Japan Fund, Pacific Basin Fund, and Southeast Asia Fund. Brown Brothers Harriman & Co., 40 Water Street, Boston, Massachusetts, is custodian of Canada Fund, France Fund, Germany Fund, Hong Kong and China Fund, Japan Small Companies Fund, Latin America Fund, Nordic Fund, and United Kingdom Fund. The custodians are responsible for the safekeeping of a fund's assets and the appointment of the subcustodian banks and clearing agencies. The custodian takes no part in determining the investment policies of a fund or in deciding which securities are purchased or sold by a fund. However, a fund may invest in obligations of the custodian and may purchase securities from or sell securities to the custodian. Morgan Guaranty Trust Company of New York, The Bank of New York, and Chemical Bank, each headquartered in New York, also may serve as a special purpose custodian of certain assets in connection with pooled repurchase agreement transactions. AUDITOR. Coopers & Lybrand L.L.P., One Post Office Square, Boston, Massachusetts serves as Canada Fund's, Emerging Markets Fund's, Europe Fund's, Japan Fund's, and Pacific Basin Fund's independent accountant. Price Waterhouse LLP, 160 Federal Street, Boston, Massachusetts serves as Europe Capital Appreciation Fund's, France Fund's, Germany Fund's, Hong Kong and China Fund's, Japan Small Companies Fund's, Latin America Fund's, Nordic Fund's, Southeast Asia Fund's, and United Kingdom Fund's independent accountant. The auditor examines financial statements for the funds and provides other audit, tax, and related services. FIDELITY'S TARGETED INTERNATIONAL EQUITY FUNDS FIDELITY CANADA FUND , FIDELITY EMERGING MARKETS FUND , FIDELITY EUROPE FUND, FIDELITY EUROPE CAPITAL APPRECIATION FUND , FIDELITY FRANCE FUND , FIDELITY GERMANY FUND , FIDELITY HONG KONG & CHINA FUND, FIDELITY JAPAN FUND , FIDELITY JAPAN SMALL COMPANIES FUND , FIDELITY LATIN AMERICA FUND, FIDELITY NORDIC FUND, FIDELITY PACIFIC BASIN FUND, FIDELITY SOUTHEAST ASIA FUND, FIDELITY UNITED KINGDOM FUND FUNDS OF FIDELITY INVESTMENT TRUST STATEMENT OF ADDITIONAL INFORMATION DECEMBER 30, 1995 This Statement is not a prospectus but should be read in conjunction with the funds' current Prospectus (dated December 30, 1995). Please retain this document for future reference. The funds' financial statements and financial highlights, included in the Annual Report for the fiscal year ended October 31, 1995, are incorporated herein by reference. To obtain an additional copy of the Prospectus or the Annual Report, please call Fidelity Distributors Corporation at 1-800-544-8888.
TABLE OF CONTENTS PAGE Investment Policies and Limitations Special Considerations Affecting Europe Special Considerations Affecting Japan, the Pacific Basin, and Southeast Asia Special Considerations Affecting Canada Special Considerations Affecting Latin America Portfolio Transactions Valuation of Portfolio Securities Performance Additional Purchase and Redemption Information Distributions and Taxes FMR Trustees and Officers Management Contracts Contracts with FMR Affiliates Description of the Trust Financial Statements Appendix
INVESTMENT ADVISER Fidelity Management & Research Company (FMR) INVESTMENT SUB-ADVISERS Fidelity Management & Research (U.K.) Inc. (FMR U.K.) Fidelity Management & Research (Far East) Inc. (FMR Far East) Fidelity Investments Japan Ltd. (FIJ) Fidelity International Investment Advisors (FIIA) Fidelity International Investment Advisors (U.K.) Limited (FIIAL U.K.) DISTRIBUTOR Fidelity Distributors Corporation (FDC) TRANSFER AGENT Fidelity Service Co. (FSC) TIF -ptb-1295 INVESTMENT POLICIES AND LIMITATIONS The following policies and limitations supplement those set forth in the Prospectus. Unless otherwise noted, whenever an investment policy or limitation states a maximum percentage of a fund's assets that may be invested in any security or other asset, or sets forth a policy regarding quality standards, such standard or percentage limitation will be determined immediately after and as a result of the fund's acquisition of such security or other asset. Accordingly, any subsequent change in values, net assets, or other circumstances will not be considered when determining whether the investment complies with the fund's investment policies and limitations. Each fund's fundamental investment policies and limitations cannot be changed without approval by a "majority of the outstanding voting securities" (as defined in the Investment Company Act of 1940) of the fund. However, except for the fundamental investment limitations listed below, the investment policies and limitations described in this Statement of Additional Information are not fundamental and may be changed without shareholder approval. INVESTMENT LIMITATIONS OF CANADA FUND (CANADA FUND ) THE FOLLOWING ARE THE FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS SET FORTH IN THEIR ENTIRETY. THE FUND MAY NOT: (1) with respect to 75% of the fund's total assets, purchase the securities of any issuer (other than obligations issued or guaranteed by the government of the United States, or any of its agencies or instrumentalities) if, as a result thereof, (a) more than 5% of the fund's total assets would be invested in the securities of such issuer, or (b) the fund would hold more than 10% of the voting securities of such issuer; (2) issue senior securities, except as permitted under the Investment Company Act of 1940; (3) borrow money, except that the fund may borrow money for temporary or emergency purposes (not for leveraging or investment) in an amount not exceeding 33 1/3% of the value of its total assets (including the amount borrowed) less liabilities (other than borrowings). Any borrowings that come to exceed 33 1/3% of the value of the fund's total assets by reason of a decline in net assets will be reduced within three business days to the extent necessary to comply with the 33 1/3% limitation; (4) underwrite securities issued by others (except to the extent that the fund may be deemed to be an underwriter within the meaning of the Securities Act of 1933 in the disposition of restricted securities); (5) purchase the securities of any issuer (other than obligations issued or guaranteed by the government of the United States or any of its agencies or instrumentalities) if, as a result, more than 25% of the fund's total assets (taken at current value) would be invested in the securities of issuers having their principal business activities in the same industry; (6) purchase or sell real estate unless acquired as a result of ownership of securities (but this shall not prevent the fund from purchasing and selling marketable securities issued by companies or other entities or investment vehicles that deal in real estate or interests therein, nor shall this prevent the fund from purchasing interests in pools of real estate mortgage loans); (7) purchase or sell physical commodities unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the fund from purchasing or selling options and futures contracts or from investing in securities or other instruments backed by physical commodities); or (8) lend any security or make any other loan if, as a result, more than 33 1/3% of its total assets would be lent to other parties, but this limitation does not apply to purchases of debt securities or to repurchase agreements. Investment limitation (3) is construed in conformity with the 1940 Act, and, accordingly, "three business days" means three days, exclusive of Sundays and holidays. THE FOLLOWING INVESTMENT LIMITATIONS ARE NOT FUNDAMENTAL AND MAY BE CHANGED WITHOUT SHAREHOLDER APPROVAL. (i) The fund does not currently intend to sell securities short, unless it owns or has the right to obtain securities equivalent in kind and amount to the securities sold short, and provided that transactions in futures contracts and options are not deemed to constitute selling securities short. (ii) The fund does not currently intend to purchase securities on margin, except that the fund may obtain such short-term credits as are necessary for the clearance of transactions, and provided that margin payments in connection with futures contracts and options on futures contracts shall not constitute purchasing securities on margin. (iii) The fund may borrow money only (a) from a bank or from a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) by engaging in reverse repurchase agreements with any party (reverse repurchase agreements are treated as borrowings for purposes of fundamental investment limitation (3)). The fund will not purchase any security while borrowings representing more than 5% of its total assets are outstanding. The fund will not borrow from other funds advised by FMR or its affiliates if total outstanding borrowings immediately after such borrowing would exceed 15% of the fund's total assets. (iv) The fund does not currently intend to purchase any security if, as a result, more than 15% of its net assets would be invested in securities that are deemed to be illiquid because they are subject to legal or contractual restrictions on resale or because they cannot be sold or disposed of in the ordinary course of business at approximately the prices at which they are valued. (v) The fund does not currently intend to purchase interests in real estate investment trusts that are not readily marketable, or interests in real estate limited partnerships that are not listed on an exchange or traded on the NASDAQ National Market System if, as a result, the sum of such interests and other investments considered illiquid under limitation (iv) would exceed 15% of the fund's net assets. (vi) The fund does not currently intend to lend assets other than securities to other parties, except by (a) lending money (up to 5% of the fund's net assets) to a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) acquiring loans, loan participations, or other forms of direct debt instruments and, in connection therewith, assuming any associated unfunded commitments of the sellers. (This limitation does not apply to purchases of debt securities or to repurchase agreements). (vii) The fund does not currently intend to (a) purchase securities of other investment companies, except in the open market where no commission except the ordinary broker's commission is paid, or (b) purchase or retain securities issued by other open-end investment companies. Limitations (a) and (b) do not apply to securities received as dividends, through offers of exchange, or as a result of a reorganization, consolidation, or merger. (viii) The fund does not currently intend to purchase warrants, valued at the lower of cost or market, in excess of 10% of the fund's net assets. Included in that amount, but not to exceed 2% of net assets, are warrants whose underlying securities are not traded on principal domestic or foreign exchanges. Warrants acquired by the fund in units or attached to securities are not subject to these restrictions. (ix) The fund does not currently intend to invest in oil, gas, or other mineral exploration or development programs or leases. For the fund's limitations on futures and options transactions, see the section entitled "Limitations on Futures and Options Transactions" beginning on page . INVESTMENT LIMITATIONS OF EMERGING MARKETS FUND (EMERGING MARKETS FUND) THE FOLLOWING ARE THE FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS SET FORTH IN THEIR ENTIRETY. THE FUND MAY NOT: (1) with respect to 75% of the fund's total assets, purchase the securities of any issuer (other than obligations issued or guaranteed by the government of the United States, or any of its agencies or instrumentalities) if, as a result thereof, (a) more than 5% of the fund's total assets would be invested in the securities of such issuer, or (b) the fund would hold more than 10% of the voting securities of such issuer; (2) issue senior securities, except as permitted under the Investment Company Act of 1940; (3) sell securities short, unless it owns or has the right to obtain securities equivalent in kind and amount to the securities sold short, and provided that transactions in futures contracts and options are not deemed to constitute short sales; (4) purchase securities on margin, except that the fund may obtain such short-term credits as are necessary for the clearance of transactions, and provided that margin payments in connection with futures contracts and options on futures contracts shall not constitute purchasing securities on margin; (5) borrow money, except that the fund may borrow money for temporary or emergency purposes (not for leveraging or investment) in an amount not exceeding 33 1/3% of its total assets (including the amount borrowed) less liabilities (other than borrowings). Any borrowings that come to exceed 33 1/3% of the fund's total assets by reason of a decline in net assets will be reduced within three days (not including Sundays and holidays) to the extent necessary to comply with the 33 1/3% limitation; (6) underwrite securities issued by others except to the extent that the fund may be deemed to be an underwriter within the meaning of the Securities Act of 1933 in the disposition of restricted securities; (7) purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. government or any of its agencies or instrumentalities) if, as a result, more than 25% of the fund's total assets would be invested in companies whose principal business activities are in the same industry; (8) purchase or sell real estate unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the fund from investing in securities or other instruments backed by real estate or securities of companies engaged in the real estate business); (9) purchase or sell physical commodities unless acquired as a result of ownership of securities (but this shall not prevent the fund from purchasing or selling options and futures contracts or instruments backed by physical commodities); or (10) lend any security or make any other loan if, as a result, more than 33 1/3% of its total assets would be lent to other parties (for this purpose, purchasing debt securities and engaging in repurchase agreements do not constitute lending). THE FOLLOWING INVESTMENT LIMITATIONS ARE NOT FUNDAMENTAL AND MAY BE CHANGED WITHOUT SHAREHOLDER APPROVAL. (i) The fund does not currently intend to sell securities short. (ii) The fund may borrow money only (a) from a bank or from a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) by engaging in reverse repurchase agreements with any party (reverse repurchase agreements are treated as borrowings for purposes of fundamental investment limitation (5)). The fund will not purchase any security while borrowings representing more than 5% of its total assets are outstanding. The fund will not borrow from other funds advised by FMR or its affiliates if total outstanding borrowings immediately after such borrowing would exceed 15% of the fund's total assets. (iii) The fund does not currently intend to purchase any security if, as a result, more than 15% of its net assets would be invested in securities that are deemed to be illiquid because they are subject to legal or contractual restrictions on resale or because they cannot be sold or disposed of in the ordinary course of business at approximately the prices at which they are valued. (iv) The fund does not currently intend to lend assets other than securities to other parties, except by (a) lending money (up to 5% of the fund's net assets) to a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) acquiring loans, loan participations, or other forms of direct debt instruments and, in connection therewith, assuming any associated unfunded commitments of the sellers. (This limitation does not apply to purchases of debt securities or to repurchase agreements.) (v) The fund does not currently intend to purchase interests in real estate investment trusts that are not readily marketable, or interests in real estate limited partnerships that are not listed on an exchange or traded on the NASDAQ National Market System if, as a result, the sum of such interests and other investments considered illiquid under limitation (iv) would exceed 15% as appropriate of the fund's net assets. (vi) The fund does not currently intend to (a) purchase securities of other investment companies, except in the open market where no commission except the ordinary broker's commission is paid, or (b) purchase or retain securities issued by other open-end investment companies. Limitations (a) and (b) do not apply to securities received as dividends, through offers of exchange, or as a result of a reorganization, consolidation, or merger. (vii) The fund does not currently intend to purchase the securities of any issuer (other than securities issued or guaranteed by domestic or foreign governments or political subdivisions thereof) if, as a result, more than 5% of its total assets would be invested in the securities of business enterprises that, including predecessors, have a record of less than three years of continuous operation. (viii) The fund does not currently intend to purchase warrants, valued at the lower of cost or market, in excess of 10% of the fund's net assets. Included in that amount, but not to exceed 2% of net assets, are warrants whose underlying securities are not traded on principal domestic or foreign exchanges. Warrants acquired by the fund in units or attached to securities are not subject to these restrictions. (ix) The fund does not currently intend to invest in oil, gas, or other mineral exploration or development programs or leases. For purposes of limitation (vii), pass-through entities and other special purpose vehicles or pools of financial assets, such as issuers of asset-backed securities or investment companies, are not considered "business enterprises." For the fund's limitations on futures and options transactions, see the section entitled "Limitations on Futures and Options Transactions" beginning on page . INVESTMENT LIMITATIONS OF EUROPE FUND (EUROPE FUND ) THE FOLLOWING ARE THE FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS SET FORTH IN THEIR ENTIRETY. THE FUND MAY NOT: (1) with respect to 75% of the fund's total assets, purchase the securities of any issuer (other than obligations issued or guaranteed by the government of the United States, its agencies or instrumentalities) if, as a result thereof: (i) more than 5% of the fund's total assets would be invested in the securities of such issuer or (ii) the fund would hold more than 10% of the voting securities of such issuer; (2) issue senior securities, except as permitted under the Investment Company Act of 1940; (3) borrow money, except that the fund may borrow money for temporary or emergency purposes (not for leveraging or investment) in an amount not exceeding 33 1/3% of the value of its total assets (including the amount borrowed) less liabilities (other than borrowings). Any borrowings that come to exceed 33 1/3% of a fund's total assets by reason of a decline in net assets will be reduced within three business days to the extent necessary to comply with the 33 1/3% limitation; (4) underwrite any issue of securities (except to the extent that the fund may be deemed to be an underwriter within the meaning of the Securities Act of 1933 in the disposition of restricted securities); (5) purchase the securities of any issuer (other than obligations issued or guaranteed by the government of the United States, its agencies or instrumentalities) if, as a result thereof, more than 25% of the fund's total assets (taken at current value) would be invested in the securities of issuers having their principal business activities in the same industry; (6) purchase or sell real estate (but this shall not prevent the fund from investing in marketable securities issued by companies such as real estate investment trusts which deal in real estate or interests therein and participation interests in pools of real estate mortgage loans); (7) purchase or sell physical commodities unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the fund from purchasing or selling options and futures contracts or from investing in securities or other instruments backed by physical commodities); or (8) lend any security or make any other loan if, as a result, more than 33 1/3% of the fund's total assets would be lent to other parties, but this limitation does not apply to purchases of debt securities or to repurchase agreements. Investment limitation (3) is construed in conformity with the 1940 Act, and, accordingly, "three business days" means three days, exclusive of Sundays and holidays. THE FOLLOWING INVESTMENT LIMITATIONS ARE NOT FUNDAMENTAL AND MAY BE CHANGED WITHOUT SHAREHOLDER APPROVAL. (i) The fund does not currently intend to sell securities short, unless it owns or has the right to obtain securities equivalent in kind and amount to the securities sold short, and provided that transactions in futures contracts and options are not deemed to constitute selling securities short. (ii) The fund does not currently intend to purchase securities on margin, except that the fund may obtain such short-term credits as are necessary for the clearance of transactions, and provided that margin payments in connection with futures contracts and options on futures contracts shall not constitute purchasing securities on margin. (iii) The fund may borrow money only (a) from a bank or from a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) by engaging in reverse repurchase agreements with any party (reverse repurchase agreements are treated as borrowings for purposes of fundamental investment limitation (3)). The fund will not purchase any security while borrowings representing more than 5% of its total assets are outstanding. The fund will not borrow from other funds advised by FMR or its affiliates if total outstanding borrowings immediately after such borrowing would exceed 15% of the fund's total assets. (iv) The fund does not currently intend to purchase any security if, as a result, more than 15% of its net assets would be invested in securities that are deemed to be illiquid because they are subject to legal or contractual restrictions on resale or because they cannot be sold or disposed of in the ordinary course of business at approximately the prices at which they are valued. (v) The fund does not currently intend to purchase interests in real estate investment trusts that are not readily marketable, or interests in real estate limited partnerships that are not listed on an exchange or traded on the NASDAQ National Market System if, as a result, the sum of such interests and other investments considered illiquid under limitation (iv) would exceed 15% of the fund's net assets. (vi) The fund does not currently intend to lend assets other than securities to other parties, except by (a) lending money (up to 5% of the fund's net assets) to a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) acquiring loans, loan participations, or other forms of direct debt instruments and, in connection therewith, assuming any associated unfunded commitments of the sellers. (This limitation does not apply to purchases of debt securities or to repurchase agreements). (vii) The fund does not currently intend to (a) purchase securities of other investment companies, except in the open market where no commission except the ordinary broker's commissions is paid, or (b) purchase or retain securities issued by other open-end investment companies. Limitations (a) and (b) do not apply to securities received as dividends, through offers of exchange, or as a result of a reorganization, consolidation, or merger. (viii) The fund does not currently intend to purchase warrants, valued at the lower of cost or market, in excess of 10% of the fund's net assets. Included in that amount, but not to exceed 2% of net assets, are warrants whose underlying securities are not traded on principal domestic or foreign exchanges. Warrants acquired by the fund in units or attached to securities are not subject to these restrictions. (ix) The fund does not currently intend to invest in oil, gas, or other mineral exploration or development programs or leases. For the fund's limitations on futures and options transactions, see the section entitled "Limitations on Futures and Options Transactions" beginning on page . INVESTMENT LIMITATIONS OF EUROPE CAPITAL APPRECIATION FUND (EUROPE CAPITAL APPRECIATION FUND ) THE FOLLOWING ARE THE FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS SET FORTH IN THEIR ENTIRETY. THE FUND MAY NOT: (1) with respect to 75% of the fund's total assets, purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. government or any of its agencies or instrumentalities) if, as a result, (a) more than 5% of the fund's total assets would be invested in the securities of that issuer, or (b) the fund would hold more than 10% of the outstanding voting securities of that issuer; (2) issue senior securities, except as permitted under the Investment Company Act of 1940; (3) borrow money, except that the fund may borrow money for temporary or emergency purposes (not for leveraging or investment) in an amount not exceeding 33 1/3% of its total assets (including the amount borrowed) less liabilities (other than borrowings). Any borrowings that come to exceed this amount will be reduced within three days (not including Sundays and holidays) to the extent necessary to comply with the 33 1/3% limitation; (4) underwrite securities issued by others except to the extent that the fund may be considered an underwriter within the meaning of the Securities Act of 1933 in the disposition of restricted securities; (5) purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. government or any of its agencies or instrumentalities) if, as a result, more than 25% of the fund's total assets would be invested in the securities of companies whose principal business activities are in the same industry; (6) purchase or sell real estate unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the fund from investing in securities or other instruments backed by real estate or securities of companies engaged in the real estate business); (7) purchase or sell physical commodities unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the fund from purchasing or selling options and futures contracts or from investing in securities or other instruments backed by physical commodities); or (8) lend any security or make any other loan if, as a result, more than 33 1/3% of its total assets would be lent to other parties, but this limitation does not apply to purchases of debt securities or to repurchase agreements. THE FOLLOWING INVESTMENT LIMITATIONS ARE NOT FUNDAMENTAL AND MAY BE CHANGED WITHOUT SHAREHOLDER APPROVAL. (i) The fund does not currently intend to sell securities short, unless it owns or has the right to obtain securities equivalent in kind and amount to the securities sold short, and provided that transactions in futures contracts and options are not deemed to constitute selling securities short. (ii) The fund does not currently intend to purchase securities on margin, except that the fund may obtain such short-term credits as are necessary for the clearance of transactions, and provided that margin payments in connection with futures contracts and options on futures contracts shall not constitute purchasing securities on margin. (iii) The fund may borrow money only (a) from a bank or from a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) by engaging in reverse repurchase agreements with any party (reverse repurchase agreements are treated as borrowings for purposes of fundamental investment limitation (3)). The fund will not purchase any security while borrowings representing more than 5% of its total assets are outstanding. The fund will not borrow from other funds advised by FMR or its affiliates if total outstanding borrowings immediately after such borrowing would exceed 15% of the fund's total assets. (iv) The fund does not currently intend to purchase any security if, as a result, more than 15% of its net assets would be invested in securities that are deemed to be illiquid because they are subject to legal or contractual restrictions on resale or because they cannot be sold or disposed of in the ordinary course of business at approximately the prices at which they are valued. (v) The fund does not currently intend to purchase interests in real estate investment trusts that are not readily marketable, or interests in real estate limited partnerships that are not listed on an exchange or traded on the NASDAQ National Market System if, as a result, the sum of such interests and other investments considered illiquid under limitation (iv) would exceed 15% of the fund's net assets. (vi) The fund does not currently intend to lend assets other than securities to other parties, except by (a) lending money (up to 5% of the fund's net assets) to a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) acquiring loans, loan participations, or other forms of direct debt instruments and, in connection therewith, assuming any associated unfunded commitments of the sellers. (This limitation does not apply to purchases of debt securities or to repurchase agreements). (vii) The fund does not currently intend to (a) purchase securities of other investment companies, except in the open market where no commission except the ordinary broker's commissions is paid, or (b) purchase or retain securities issued by other open-end investment companies. Limitations (a) and (b) do not apply to securities received as dividends, through offers of exchange, or as a result of a reorganization, consolidation, or merger. (viii) The fund does not currently intend to purchase the securities of any issuer (other than securities issued or guaranteed by domestic or foreign governments or political subdivisions thereof) if, as a result, more than 5% of its total assets would be invested in the securities of business enterprises that, including predecessors, have a record of less than three years of continuous operation. (ix) The fund does not currently intend to purchase warrants, valued at the lower of cost or market, in excess of 10% of the fund's net assets. Included in that amount, but not to exceed 2% of net assets, are warrants whose underlying securities are not traded on principal domestic or foreign exchanges. Warrants acquired by the fund in units or attached to securities are not subject to these restrictions. (x) The fund does not currently intend to invest in oil, gas, or other mineral exploration or development programs or leases. (xi) The fund does not currently intend to purchase the securities of any issuer if those officers and Trustees of the trust and those officers and directors of FMR who individually own more than 1/2 of 1% of the securities of such issuer together own more than 5% of such issuer's securities. For purposes of limitation (viii), pass-through entities and other special purpose vehicles or pools of financial assets, such as issuers of asset-backed securities or investment companies, are not considered "business enterprises." For the fund's limitations on futures and options transactions, see the section entitled "Limitations on Futures and Options Transactions" beginning on page . INVESTMENT LIMITATIONS OF FRANCE FUND (FRANCE FUND ) THE FOLLOWING ARE THE FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS SET FORTH IN THEIR ENTIRETY. THE FUND MAY NOT: (1) issue senior securities, except as permitted under the Investment Company Act of 1940; (2) borrow money, except that the fund may borrow money for temporary or emergency purposes (not for leveraging or investment) in an amount not exceeding 33 1/3% of its total assets (including the amount borrowed) less liabilities (other than borrowings). Any borrowings that come to exceed this amount will be reduced within three days (not including Sundays and holidays) to the extent necessary to comply with the 33 1/3% limitation; (3) underwrite securities issued by others, except to the extent that the fund may be considered an underwriter within the meaning of the Securities Act of 1933 in the disposition of restricted securities; (4) purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. government or any of its agencies or instrumentalities) if, as a result, more than 25% of the fund's total assets would be invested in the securities of companies whose principal business activities are in the same industry; (5) purchase or sell real estate unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the fund from investing in securities or other instruments backed by real estate or securities of companies engaged in the real estate business); (6) purchase or sell physical commodities unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the fund from purchasing or selling options and futures contracts or from investing in securities or other instruments backed by physical commodities); or (7) lend any security or make any other loan if, as a result, more than 33 1/3% of its total assets would be lent to other parties, but this limitation does not apply to purchases of debt securities or to repurchase agreements. (8) The fund may, notwithstanding any other fundamental investment policy or limitation, invest all of its assets in the securities of a single open-end management investment company managed by Fidelity Management & Research Company or an affiliate or successor with substantially the same fundamental investment objective, policies, and limitations as the fund. THE FOLLOWING INVESTMENT LIMITATIONS ARE NOT FUNDAMENTAL AND MAY BE CHANGED WITHOUT SHAREHOLDER APPROVAL. (i) To meet federal tax requirements for qualification as a "regulated investment company," the fund limits its investments so that at the close of each quarter of its taxable year: (a) with regard to at least 50% of total assets, no more than 5% of total assets are invested in the securities of a single issuer, and (b) no more than 25% of total assets are invested in the securities of a single issuer. Limitations (a) and (b) do not apply to "Government securities" as defined for federal tax purposes. (ii) With respect to 75% of its total assets, the fund does not currently intend to purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. government or any of its agencies or instrumentalities) if, as a result, the fund would hold more than 10% of the outstanding voting securities of that issuer. (iii) The fund does not currently intend to sell securities short, unless it owns or has the right to obtain securities equivalent in kind and amount to the securities sold short, and provided that transactions in futures contracts and options are not deemed to constitute selling securities short. (iv) The fund does not currently intend to purchase securities on margin, except that the fund may obtain such short-term credits as are necessary for the clearance of transactions, and provided that margin payments in connection with futures contracts and options on futures contracts shall not constitute purchasing securities on margin. (v) The fund may borrow money only (a) from a bank or from a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) by engaging in reverse repurchase agreements with any party (reverse repurchase agreements are treated as borrowings for purposes of fundamental investment limitation (2)). The fund will not purchase any security while borrowings representing more than 5% of its total assets are outstanding. The fund will not borrow from other funds advised by FMR or its affiliates if total outstanding borrowings immediately after such borrowing would exceed 15% of the fund's total assets. (vi) The fund does not currently intend to purchase any security if, as a result, more than 15% of its net assets would be invested in securities that are deemed to be illiquid because they are subject to legal or contractual restrictions on resale or because they cannot be sold or disposed of in the ordinary course of business at approximately the prices at which they are valued. (vii) The fund does not currently intend to purchase interests in real estate investment trusts that are not readily marketable or interests in real estate limited partnerships that are not listed on an exchange or traded on the NASDAQ National Market System if, as a result, the sum of such interests and other investments considered illiquid under limitation (v i ) would exceed 15% of the fund's net assets. (viii) The fund does not currently intend to lend assets other than securities to other parties, except by (a) lending money (up to 5% of the fund's net assets) to a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) acquiring loans, loan participations, or other forms of direct debt instruments and, in connection therewith, assuming any associated unfunded commitments of the sellers. (This limitation does not apply to purchases of debt securities or to repurchase agreements.) (ix) The fund does not currently intend to (a) purchase securities of other investment companies, except in the open market where no commission except the ordinary broker's commission is paid, or (b) purchase or retain securities issued by other open-end investment companies. Limitations (a) and (b) do not apply to securities received as dividends, through offers of exchange, or as a result of a reorganization, consolidation, or merger. (x) The fund does not currently intend to purchase the securities of any issuer (other than securities issued or guaranteed by domestic or foreign governments or political subdivisions thereof) if, as a result, more than 5% of its total assets would be invested in the securities of business enterprises that, including predecessors, have a record of less than three years of continuous operation. (xi) The fund does not currently intend to invest in oil, gas, or other mineral exploration or development programs or leases. (xii) The fund does not currently intend to invest all of its assets in the securities of a single open-end management investment company managed by Fidelity Management & Research Company or an affiliate or successor with substantially the same fundamental investment objective, policies, and limitations as the fund. For purposes of limitation (x), pass-through entities and other special purpose vehicles or pools of financial assets, such as issuers of asset-backed securities or investment companies, are not considered "business enterprises." For the fund's limitations on futures and options transactions, see the section entitled "Limitations on Futures and Options Transactions" beginning on page . INVESTMENT LIMITATIONS OF GERMANY FUND (GERMANY FUND ) THE FOLLOWING ARE THE FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS SET FORTH IN THEIR ENTIRETY. THE FUND MAY NOT: (1) issue senior securities, except as permitted under the Investment Company Act of 1940; (2) borrow money, except that the fund may borrow money for temporary or emergency purposes (not for leveraging or investment) in an amount not exceeding 33 1/3% of its total assets (including the amount borrowed) less liabilities (other than borrowings). Any borrowings that come to exceed this amount will be reduced within three days (not including Sundays and holidays) to the extent necessary to comply with the 33 1/3% limitation; (3) underwrite securities issued by others, except to the extent that the fund may be considered an underwriter within the meaning of the Securities Act of 1933 in the disposition of restricted securities; (4) purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. government or any of its agencies or instrumentalities) if, as a result, more than 25% of the fund's total assets would be invested in the securities of companies whose principal business activities are in the same industry; (5) purchase or sell real estate unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the fund from investing in securities or other instruments backed by real estate or securities of companies engaged in the real estate business); (6) purchase or sell physical commodities unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the fund from purchasing or selling options and futures contracts or from investing in securities or other instruments backed by physical commodities); or (7) lend any security or make any other loan if, as a result, more than 33 1/3% of its total assets would be lent to other parties, but this limitation does not apply to purchases of debt securities or to repurchase agreements. (8) The fund may, notwithstanding any other fundamental investment policy or limitation, invest all of its assets in the securities of a single open-end management investment company managed by Fidelity Management & Research Company or an affiliate or successor with substantially the same fundamental investment objective, policies, and limitations as the fund. THE FOLLOWING INVESTMENT LIMITATIONS ARE NOT FUNDAMENTAL AND MAY BE CHANGED WITHOUT SHAREHOLDER APPROVAL. (i) To meet federal tax requirements for qualification as a "regulated investment company," the fund limits its investments so that at the close of each quarter of its taxable year: (a) with regard to at least 50% of total assets, no more than 5% of total assets are invested in the securities of a single issuer, and (b) no more than 25% of total assets are invested in the securities of a single issuer. Limitations (a) and (b) do not apply to "Government securities" as defined for federal tax purposes. (ii) With respect to 75% of its total assets, the fund does not currently intend to purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. government or any of its agencies or instrumentalities) if, as a result, the fund would hold more than 10% of the outstanding voting securities of that issuer. (iii) The fund does not currently intend to sell securities short, unless it owns or has the right to obtain securities equivalent in kind and amount to the securities sold short, and provided that transactions in futures contracts and options are not deemed to constitute selling securities short. (iv) The fund does not currently intend to purchase securities on margin, except that the fund may obtain such short-term credits as are necessary for the clearance of transactions, and provided that margin payments in connection with futures contracts and options on futures contracts shall not constitute purchasing securities on margin. (v) The fund may borrow money only (a) from a bank or from a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) by engaging in reverse repurchase agreements with any party (reverse repurchase agreements are treated as borrowings for purposes of fundamental investment limitation (2)). The fund will not purchase any security while borrowings representing more than 5% of its total assets are outstanding. The fund will not borrow from other funds advised by FMR or its affiliates if total outstanding borrowings immediately after such borrowing would exceed 15% of the fund's total assets. (vi) The fund does not currently intend to purchase any security if, as a result, more than 15% of its net assets would be invested in securities that are deemed to be illiquid because they are subject to legal or contractual restrictions on resale or because they cannot be sold or disposed of in the ordinary course of business at approximately the prices at which they are valued. (vii) The fund does not currently intend to purchase interests in real estate investment trusts that are not readily marketable or interests in real estate limited partnerships that are not listed on an exchange or traded on the NASDAQ National Market System if, as a result, the sum of such interests and other investments considered illiquid under limitation (v i ) would exceed 15% of the fund's net assets. (viii) The fund does not currently intend to lend assets other than securities to other parties, except by (a) lending money (up to 5% of the fund's net assets) to a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) acquiring loans, loan participations, or other forms of direct debt instruments and, in connection therewith, assuming any associated unfunded commitments of the sellers. (This limitation does not apply to purchases of debt securities or to repurchase agreements.) (ix) The fund does not currently intend to (a) purchase securities of other investment companies, except in the open market where no commission except the ordinary broker's commission is paid, or (b) purchase or retain securities issued by other open-end investment companies. Limitations (a) and (b) do not apply to securities received as dividends, through offers of exchange, or as a result of a reorganization, consolidation, or merger. (x) The fund does not currently intend to purchase the securities of any issuer (other than securities issued or guaranteed by domestic or foreign governments or political subdivisions thereof) if, as a result, more than 5% of its total assets would be invested in the securities of business enterprises that, including predecessors, have a record of less than three years of continuous operation. (xi) The fund does not currently intend to invest in oil, gas, or other mineral exploration or development programs or leases. (xii) The fund does not currently intend to invest all of its assets in the securities of a single open-end management investment company managed by Fidelity Management & Research Company or an affiliate or successor with substantially the same fundamental investment objective, policies, and limitations as the fund. For purposes of limitation (x), pass-through entities and other special purpose vehicles or pools of financial assets, such as issuers of asset-backed securities or investment companies, are not considered "business enterprises." For the fund's limitations on futures and options transactions, see the section entitled "Limitations on Futures and Options Transactions" beginning on page . INVESTMENT LIMITATIONS OF HONG KONG AND CHINA FUND (HONG KONG AND CHINA FUND) THE FOLLOWING ARE THE FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS SET FORTH IN THEIR ENTIRETY. THE FUND MAY NOT: (1) issue senior securities, except as permitted under the Investment Company Act of 1940; (2) borrow money, except that the fund may borrow money for temporary or emergency purposes (not for leveraging or investment) in an amount not exceeding 33 1/3% of its total assets (including the amount borrowed) less liabilities (other than borrowings). Any borrowings that come to exceed this amount will be reduced within three days (not including Sundays and holidays) to the extent necessary to comply with the 33 1/3% limitation; (3) underwrite securities issued by others, except to the extent that the fund may be considered an underwriter within the meaning of the Securities Act of 1933 in the disposition of restricted securities; (4) purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. government or any of its agencies or instrumentalities) if, as a result, more than 25% of the fund's total assets would be invested in the securities of companies whose principal business activities are in the same industry; (5) purchase or sell real estate unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the fund from investing in securities or other instruments backed by real estate or securities of companies engaged in the real estate business); (6) purchase or sell physical commodities unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the fund from purchasing or selling options and futures contracts or from investing in securities or other instruments backed by physical commodities); or (7) lend any security or make any other loan if, as a result, more than 33 1/3% of its total assets would be lent to other parties, but this limitation does not apply to purchases of debt securities or to repurchase agreements. (8) The fund may, notwithstanding any other fundamental investment policy or limitation, invest all of its assets in the securities of a single open-end management investment company managed by Fidelity Management & Research Company or an affiliate or successor with substantially the same fundamental investment objective, policies, and limitations as the fund. THE FOLLOWING INVESTMENT LIMITATIONS ARE NOT FUNDAMENTAL AND MAY BE CHANGED WITHOUT SHAREHOLDER APPROVAL. (i) To meet federal tax requirements for qualification as a "regulated investment company," the fund limits its investments so that at the close of each quarter of its taxable year: (a) with regard to at least 50% of total assets, no more than 5% of total assets are invested in the securities of a single issuer, and (b) no more than 25% of total assets are invested in the securities of a single issuer. Limitations (a) and (b) do not apply to "Government securities" as defined for federal tax purposes. (ii) With respect to 75% of its total assets, the fund does not currently intend to purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. government or any of its agencies or instrumentalities) if, as a result, the fund would hold more than 10% of the outstanding voting securities of that issuer. (iii) The fund does not currently intend to sell securities short, unless it owns or has the right to obtain securities equivalent in kind and amount to the securities sold short, and provided that transactions in futures contracts and options are not deemed to constitute selling securities short. (iv) The fund does not currently intend to purchase securities on margin, except that the fund may obtain such short-term credits as are necessary for the clearance of transactions, and provided that margin payments in connection with futures contracts and options on futures contracts shall not constitute purchasing securities on margin. (v) The fund may borrow money only (a) from a bank or from a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) by engaging in reverse repurchase agreements with any party (reverse repurchase agreements are treated as borrowings for purposes of fundamental investment limitation (2)). The fund will not purchase any security while borrowings representing more than 5% of its total assets are outstanding. The fund will not borrow from other funds advised by FMR or its affiliates if total outstanding borrowings immediately after such borrowing would exceed 15% of the fund's total assets. (vi) The fund does not currently intend to purchase any security if, as a result, more than 15% of its net assets would be invested in securities that are deemed to be illiquid because they are subject to legal or contractual restrictions on resale or because they cannot be sold or disposed of in the ordinary course of business at approximately the prices at which they are valued. (vii) The fund does not currently intend to purchase interests in real estate investment trusts that are not readily marketable or interests in real estate limited partnerships that are not listed on an exchange or traded on the NASDAQ National Market System if, as a result, the sum of such interests and other investments considered illiquid under limitation (v) would exceed 15% of the fund's net assets. (viii) The fund does not currently intend to lend assets other than securities to other parties, except by (a) lending money (up to 5% of the fund's net assets) to a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) acquiring loans, loan participations, or other forms of direct debt instruments and, in connection therewith, assuming any associated unfunded commitments of the sellers. (This limitation does not apply to purchases of debt securities or to repurchase agreements.) (ix) The fund does not currently intend to (a) purchase securities of other investment companies, except in the open market where no commission except the ordinary broker's commission is paid, or (b) purchase or retain securities issued by other open-end investment companies. Limitations (a) and (b) do not apply to securities received as dividends, through offers of exchange, or as a result of a reorganization, consolidation, or merger. (x) The fund does not currently intend to purchase the securities of any issuer (other than securities issued or guaranteed by domestic or foreign governments or political subdivisions thereof) if, as a result, more than 5% of its total assets would be invested in the securities of business enterprises that, including predecessors, have a record of less than three years of continuous operation. (xi) The fund does not currently intend to invest in oil, gas, or other mineral exploration or development programs or leases. (xii) The fund does not currently intend to invest all of its assets in the securities of a single open-end management investment company managed by Fidelity Management & Research Company or an affiliate or successor with substantially the same fundamental investment objective, policies, and limitations as the fund. For purposes of limitation (x), pass-through entities and other special purpose vehicles or pools of financial assets, such as issuers of asset-backed securities or investment companies, are not considered "business enterprises." For the fund's limitations on futures and options transactions, see the section entitled "Limitations on Futures and Options Transactions" beginning on page . INVESTMENT LIMITATIONS OF JAPAN FUND (JAPAN FUND ) THE FOLLOWING ARE THE FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS SET FORTH IN THEIR ENTIRETY. THE FUND MAY NOT: (1) With respect to 75% of the fund's total assets, purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. government or any of its agencies or instrumentalities) if, as a result thereof, (a) more than 5% of the fund's total assets would be invested in the securities of that issuer, or (b) the fund would hold more than 10% of the outstanding voting securities of that issuer; (2) issue senior securities, except as permitted under the Investment Company Act of 1940; (3) borrow money, except that the fund may borrow money for temporary or emergency purposes (not for leveraging or investment) in an amount not exceeding 33 1/3% of its total assets (including the amount borrowed) less liabilities (other than borrowings). Any borrowings that come to exceed this amount will be reduced within three days (not including Sundays and holidays) to the extent necessary to comply with the 33 1/3% limitation; (4) underwrite securities issued by others, except to the extent that the fund may be considered an underwriter within the meaning of the Securities Act of 1933 in the disposition of restricted securities; (5) purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. government or any of its agencies or instrumentalities) if, as a result, more than 25% of the fund's total assets would be invested in the securities of companies whose principal business activities are in the same industry; (6) purchase or sell real estate unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the fund from investing in securities or other instruments backed by real estate or securities of companies engaged in the real estate business); (7) purchase or sell physical commodities unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the fund from purchasing or selling options and futures contracts or from investing in securities or other instruments backed by physical commodities); or (8) lend any security or make any other loan if, as a result, more than 33 1/3% of its total assets would be lent to other parties, but this limitation does not apply to purchases of debt securities or to repurchase agreements. THE FOLLOWING INVESTMENT LIMITATIONS ARE NOT FUNDAMENTAL AND MAY BE CHANGED WITHOUT SHAREHOLDER APPROVAL. (i) The fund does not currently intend to sell securities short, unless it owns or has the right to obtain securities equivalent in kind and amount to the securities sold short, and provided that transactions in futures contracts and options are not deemed to constitute selling securities short. (ii) The fund does not currently intend to purchase securities on margin, except that the fund may obtain such short-term credits as are necessary for the clearance of transactions, and provided that margin payments in connection with futures contracts and options on futures contracts shall not constitute purchasing securities on margin. (iii) The fund may borrow money only (a) from a bank or from a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) by engaging in reverse repurchase agreements with any party (reverse repurchase agreements are treated as borrowings for purposes of fundamental investment limitation (3)). The fund will not purchase any security while borrowings representing more than 5% of its total assets are outstanding. The fund will not borrow from other funds advised by FMR or its affiliates if total outstanding borrowings immediately after such borrowing would exceed 15% of the fund's total assets. (iv) The fund does not currently intend to purchase any security if, as a result, more than 15% of its net assets would be invested in securities that are deemed to be illiquid because they are subject to legal or contractual restrictions on resale or because they cannot be sold or disposed of in the ordinary course of business at approximately the prices at which they are valued. (v) The fund does not currently intend to purchase interests in real estate investment trusts that are not readily marketable, or interests in real estate limited partnerships that are not listed on an exchange or traded on the NASDAQ National Market System if, as a result, the sum of such interests and other investments considered illiquid under limitation (iv) would exceed 15% as appropriate of the fund's net assets. (vi) The fund does not currently intend to lend assets other than securities to other parties, except by (a) lending money (up to 5% of the fund's net assets) to a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) acquiring loans, loan participations, or other forms of direct debt instruments and, in connection therewith, assuming any associated unfunded commitments of the sellers. (This limitation does not apply to purchases of debt securities or to repurchase agreements). (vii) The fund does not currently intend to (a) purchase securities of other investment companies, except in the open market where no commission except the ordinary broker's commission is paid, or (b) purchase or retain securities issued by other open-end investment companies. Limitations (a) and (b) do not apply to securities received as dividends, through offers of exchange, or as a result of a reorganization, consolidation, or merger. (viii) The fund does not currently intend to purchase the securities of any issuer (other than securities issued or guaranteed by domestic or foreign governments or political subdivisions thereof) if, as a result, more than 5% of its total assets would be invested in the securities of business enterprises that, including predecessors, have a record of less than three years of continuous operation. (ix) The fund does not currently intend to purchase warrants, valued at the lower of cost or market, in excess of 10% of the fund's net assets. Included in that amount, but not to exceed 2% of net assets, are warrants whose underlying securities are not traded on principal domestic or foreign exchanges. Warrants acquired by the fund in units or attached to securities are not subject to these restrictions. (x) The fund does not currently intend to invest in oil, gas, or other mineral exploration or development programs or leases. For purposes of limitation (viii), pass-through entities and other special purpose vehicles or pools of financial assets, such as issuers of asset-backed securities or investment companies, are not considered "business enterprises." For the fund's limitations on futures and options transactions, see the section entitled "Limitations on Futures and Options Transactions" beginning on page . INVESTMENT LIMITATIONS OF JAPAN SMALL COMPANIES FUND (JAPAN SMALL COMPANIES FUND ) THE FOLLOWING ARE THE FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS SET FORTH IN THEIR ENTIRETY. THE FUND MAY NOT: (1) issue senior securities, except as permitted under the Investment Company Act of 1940; (2) borrow money, except that the fund may borrow money for temporary or emergency purposes (not for leveraging or investment) in an amount not exceeding 33 1/3% of its total assets (including the amount borrowed) less liabilities (other than borrowings). Any borrowings that come to exceed this amount will be reduced within three days (not including Sundays and holidays) to the extent necessary to comply with the 33 1/3% limitation; (3) underwrite securities issued by others, except to the extent that the fund may be considered an underwriter within the meaning of the Securities Act of 1933 in the disposition of restricted securities; (4) purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. government or any of its agencies or instrumentalities) if, as a result, more than 25% of the fund's total assets would be invested in the securities of companies whose principal business activities are in the same industry; (5) purchase or sell real estate unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the fund from investing in securities or other instruments backed by real estate or securities of companies engaged in the real estate business); (6) purchase or sell physical commodities unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the fund from purchasing or selling options and futures contracts or from investing in securities or other instruments backed by physical commodities); or (7) lend any security or make any other loan if, as a result, more than 33 1/3% of its total assets would be lent to other parties, but this limitation does not apply to purchases of debt securities or to repurchase agreements. (8) The fund may, notwithstanding any other fundamental investment policy or limitation, invest all of its assets in the securities of a single open-end management investment company managed by Fidelity Management & Research Company or an affiliate or successor with substantially the same fundamental investment objective, policies, and limitations as the fund. THE FOLLOWING INVESTMENT LIMITATIONS ARE NOT FUNDAMENTAL AND MAY BE CHANGED WITHOUT SHAREHOLDER APPROVAL. (i) To meet federal tax requirements for qualification as a "regulated investment company," the fund limits its investments so that at the close of each quarter of its taxable year: (a) with regard to at least 50% of total assets, no more than 5% of total assets are invested in the securities of a single issuer, and (b) no more than 25% of total assets are invested in the securities of a single issuer. Limitations (a) and (b) do not apply to "Government securities" as defined for federal tax purposes. (ii) With respect to 75% of its total assets, the fund does not currently intend to purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. government or any of its agencies or instrumentalities) if, as a result, the fund would hold more than 10% of the outstanding voting securities of that issuer. (iii) The fund does not currently intend to sell securities short, unless it owns or has the right to obtain securities equivalent in kind and amount to the securities sold short, and provided that transactions in futures contracts and options are not deemed to constitute selling securities short. (iv) The fund does not currently intend to purchase securities on margin, except that the fund may obtain such short-term credits as are necessary for the clearance of transactions, and provided that margin payments in connection with futures contracts and options on futures contracts shall not constitute purchasing securities on margin. (v) The fund may borrow money only (a) from a bank or from a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) by engaging in reverse repurchase agreements with any party (reverse repurchase agreements are treated as borrowings for purposes of fundamental investment limitation (2)). The fund will not purchase any security while borrowings representing more than 5% of its total assets are outstanding. The fund will not borrow from other funds advised by FMR or its affiliates if total outstanding borrowings immediately after such borrowing would exceed 15% of the fund's total assets. (vi) The fund does not currently intend to purchase any security if, as a result, more than 15% of its net assets would be invested in securities that are deemed to be illiquid because they are subject to legal or contractual restrictions on resale or because they cannot be sold or disposed of in the ordinary course of business at approximately the prices at which they are valued. (vii) The fund does not currently intend to purchase interests in real estate investment trusts that are not readily marketable or interests in real estate limited partnerships that are not listed on an exchange or traded on the NASDAQ National Market System if, as a result, the sum of such interests and other investments considered illiquid under limitation (v i ) would exceed 15% of the fund's net assets. (viii) The fund does not currently intend to lend assets other than securities to other parties, except by (a) lending money (up to 5% of the fund's net assets) to a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) acquiring loans, loan participations, or other forms of direct debt instruments and, in connection therewith, assuming any associated unfunded commitments of the sellers. (This limitation does not apply to purchases of debt securities or to repurchase agreements.) (ix) The fund does not currently intend to (a) purchase securities of other investment companies, except in the open market where no commission except the ordinary broker's commission is paid, or (b) purchase or retain securities issued by other open-end investment companies. Limitations (a) and (b) do not apply to securities received as dividends, through offers of exchange, or as a result of a reorganization, consolidation, or merger. (x) The fund does not currently intend to purchase the securities of any issuer (other than securities issued or guaranteed by domestic or foreign governments or political subdivisions thereof) if, as a result, more than 5% of its total assets would be invested in the securities of business enterprises that, including predecessors, have a record of less than three years of continuous operation. (xi) The fund does not currently intend to invest in oil, gas, or other mineral exploration or development programs or leases. (xii) The fund does not currently intend to invest all of its assets in the securities of a single open-end management investment company managed by Fidelity Management & Research Company or an affiliate or successor with substantially the same fundamental investment objective, policies, and limitations as the fund. For purposes of limitation (x), pass-through entities and other special purpose vehicles or pools of financial assets, such as issuers of asset-backed securities or investment companies, are not considered "business enterprises." For the fund's limitations on futures and options transactions, see the section entitled "Limitations on Futures and Options Transactions" beginning on page . INVESTMENT LIMITATIONS OF LATIN AMERICA FUND (LATIN AMERICA FUND) THE FOLLOWING ARE THE FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS SET FORTH IN THEIR ENTIRETY. THE FUND MAY NOT: (1) with respect to 75% of the fund's total assets, purchase the securities of any issuer (other than securities issued or guaranteed by the U. S. government or any of its agencies or instrumentalities) if, as a result, (a) more than 5% of the fund's total assets would be invested in the securities of that issuer, or (b) the fund would hold more than 10% of the outstanding voting securities of that issuer; (2) issue senior securities, except as permitted under the Investment Company Act of 1940; (3) borrow money, except that the fund may borrow money for temporary or emergency purposes (not for leveraging or investment) in an amount not exceeding 33 1/3% of its total assets (including the amount borrowed) less liabilities (other than borrowings). Any borrowings that come to exceed this amount will be reduced within three days (not including Sundays and holidays) to the extent necessary to comply with the 33 1/3% limitation; (4) underwrite securities issued by others except to the extent that the fund may be considered an underwriter within the meaning of the Securities Act of 1933 in the disposition of restricted securities; (5) purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. government or any of its agencies or instrumentalities) if, as a result, more than 25% of the fund's total assets would be invested in the securities of companies whose principal business activities are in the same industry; (6) purchase or sell real estate unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the fund from investing in securities or other instruments backed by real estate or securities of companies engaged in the real estate business); (7) purchase or sell physical commodities unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the fund from purchasing or selling options and futures contracts or from investing in securities or other instruments backed by physical commodities); or (8) lend any security or make any other loan if, as a result, more than 33 1/3% of its total assets would be lent to other parties, but this limitation does not apply to purchases of debt securities or to repurchase agreements. THE FOLLOWING INVESTMENT LIMITATIONS ARE NOT FUNDAMENTAL AND MAY BE CHANGED WITHOUT SHAREHOLDER APPROVAL. (i) The fund does not currently intend to sell securities short, unless it owns or has the right to obtain securities equivalent in kind and amount to the securities sold short, and provided that transactions in futures contracts and options are not deemed to constitute selling securities short. (ii) The fund does not currently intend to purchase securities on margin, except that the fund may obtain such short-term credits as are necessary for the clearance of transactions, and provided that margin payments in connection with futures contracts and options on futures contracts shall not constitute purchasing securities on margin. (iii) The fund may borrow money only (a) from a bank or from a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) by engaging in reverse repurchase agreements with any party (reverse repurchase agreements are treated as borrowings for purposes of fundamental investment limitation (3)). The fund will not purchase any security while borrowings representing more than 5% of its total assets are outstanding. The fund will not borrow from other funds advised by FMR or its affiliates if total outstanding borrowings immediately after such borrowing would exceed 15% of the fund's total assets. (iv) The fund does not currently intend to purchase any security if, as a result, more than 15% of its net assets would be invested in securities that are deemed to be illiquid because they are subject to legal or contractual restrictions on resale or because they cannot be sold or disposed of in the ordinary course of business at approximately the prices at which they are valued. (v) The fund does not currently intend to purchase interests in real estate investment trusts that are not readily marketable, or interests in real estate limited partnerships that are not listed on an exchange or traded on the NASDAQ National Market System if, as a result, the sum of such interests and other investments considered illiquid under limitation (iv) would exceed 15% as appropriate of the fund's net assets. (vi) The fund does not currently intend to lend assets other than securities to other parties, except by (a) lending money (up to 5% of the fund's net assets) to a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) acquiring loans, loan participations, or other forms of direct debt instruments and, in connection therewith, assuming any associated unfunded commitments of the sellers. (This limitation does not apply to purchases of debt securities or to repurchase agreements). (vii) The fund does not currently intend to (a) purchase securities of other investment companies, except in the open market where no commission except the ordinary broker's commission is paid, or (b) purchase or retain securities issued by other open-end investment companies. Limitations (a) and (b) do not apply to securities received as dividends, through offers of exchange, or as a result of a reorganization, consolidation, or merger. (viii) The fund does not currently intend to purchase the securities of any issuer (other than securities issued or guaranteed by domestic or foreign governments or political subdivisions thereof) if, as a result, more than 5% of its total assets would be invested in the securities of business enterprises that, including predecessors, have a record of less than three years of continuous operation. (ix) The fund does not currently intend to purchase warrants, valued at the lower of cost or market, in excess of 10% of the fund's net assets. Included in that amount, but not to exceed 2% of net assets, are warrants whose underlying securities are not traded on principal domestic or foreign exchanges. Warrants acquired by the fund in units or attached to securities are not subject to these restrictions. (x) The fund does not currently intend to invest in oil, gas, or other mineral exploration or development programs or leases. For purposes of limitation (viii), pass-through entities and other special purpose vehicles or pools of financial assets, such as issuers of asset-backed securities or investment companies, are not considered "business enterprises." For the fund's limitations on futures and options transactions, see the section entitled "Limitations on Futures and Options Transactions" beginning on page . INVESTMENT LIMITATIONS OF NORDIC FUND (NORDIC FUND ) THE FOLLOWING ARE THE FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS SET FORTH IN THEIR ENTIRETY. THE FUND MAY NOT: (1) issue senior securities, except as permitted under the Investment Company Act of 1940; (2) borrow money, except that the fund may borrow money for temporary or emergency purposes (not for leveraging or investment) in an amount not exceeding 33 1/3% of its total assets (including the amount borrowed) less liabilities (other than borrowings). Any borrowings that come to exceed this amount will be reduced within three days (not including Sundays and holidays) to the extent necessary to comply with the 33 1/3% limitation; (3) underwrite securities issued by others, except to the extent that the fund may be considered an underwriter within the meaning of the Securities Act of 1933 in the disposition of restricted securities; (4) purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. government or any of its agencies or instrumentalities) if, as a result, more than 25% of the fund's total assets would be invested in the securities of companies whose principal business activities are in the same industry; (5) purchase or sell real estate unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the fund from investing in securities or other instruments backed by real estate or securities of companies engaged in the real estate business); (6) purchase or sell physical commodities unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the fund from purchasing or selling options and futures contracts or from investing in securities or other instruments backed by physical commodities); or (7) lend any security or make any other loan if, as a result, more than 33 1/3% of its total assets would be lent to other parties, but this limitation does not apply to purchases of debt securities or to repurchase agreements. (8) The fund may, notwithstanding any other fundamental investment policy or limitation, invest all of its assets in the securities of a single open-end management investment company managed by Fidelity Management & Research Company or an affiliate or successor with substantially the same fundamental investment objective, policies, and limitations as the fund. THE FOLLOWING INVESTMENT LIMITATIONS ARE NOT FUNDAMENTAL AND MAY BE CHANGED WITHOUT SHAREHOLDER APPROVAL. (i) To meet federal tax requirements for qualification as a "regulated investment company," the fund limits its investments so that at the close of each quarter of its taxable year: (a) with regard to at least 50% of total assets, no more than 5% of total assets are invested in the securities of a single issuer, and (b) no more than 25% of total assets are invested in the securities of a single issuer. Limitations (a) and (b) do not apply to "Government securities" as defined for federal tax purposes. (ii) With respect to 75% of its total assets, the fund does not currently intend to purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. government or any of its agencies or instrumentalities) if, as a result, the fund would hold more than 10% of the outstanding voting securities of that issuer. (iii) The fund does not currently intend to sell securities short, unless it owns or has the right to obtain securities equivalent in kind and amount to the securities sold short, and provided that transactions in futures contracts and options are not deemed to constitute selling securities short. (iv) The fund does not currently intend to purchase securities on margin, except that the fund may obtain such short-term credits as are necessary for the clearance of transactions, and provided that margin payments in connection with futures contracts and options on futures contracts shall not constitute purchasing securities on margin. (v) The fund may borrow money only (a) from a bank or from a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) by engaging in reverse repurchase agreements with any party (reverse repurchase agreements are treated as borrowings for purposes of fundamental investment limitation (2)). The fund will not purchase any security while borrowings representing more than 5% of its total assets are outstanding. The fund will not borrow from other funds advised by FMR or its affiliates if total outstanding borrowings immediately after such borrowing would exceed 15% of the fund's total assets. (vi) The fund does not currently intend to purchase any security if, as a result, more than 15% of its net assets would be invested in securities that are deemed to be illiquid because they are subject to legal or contractual restrictions on resale or because they cannot be sold or disposed of in the ordinary course of business at approximately the prices at which they are valued. (vii) The fund does not currently intend to purchase interests in real estate investment trusts that are not readily marketable or interests in real estate limited partnerships that are not listed on an exchange or traded on the NASDAQ National Market System if, as a result, the sum of such interests and other investments considered illiquid under limitation (v i ) would exceed 15% of the fund's net assets. (viii) The fund does not currently intend to lend assets other than securities to other parties, except by (a) lending money (up to 5% of the fund's net assets) to a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) acquiring loans, loan participations, or other forms of direct debt instruments and, in connection therewith, assuming any associated unfunded commitments of the sellers. (This limitation does not apply to purchases of debt securities or to repurchase agreements.) (ix) The fund does not currently intend to (a) purchase securities of other investment companies, except in the open market where no commission except the ordinary broker's commission is paid, or (b) purchase or retain securities issued by other open-end investment companies. Limitations (a) and (b) do not apply to securities received as dividends, through offers of exchange, or as a result of a reorganization, consolidation, or merger. (x) The fund does not currently intend to purchase the securities of any issuer (other than securities issued or guaranteed by domestic or foreign governments or political subdivisions thereof) if, as a result, more than 5% of its total assets would be invested in the securities of business enterprises that, including predecessors, have a record of less than three years of continuous operation. (xi) The fund does not currently intend to invest in oil, gas, or other mineral exploration or development programs or leases. (xii) The fund does not currently intend to invest all of its assets in the securities of a single open-end management investment company managed by Fidelity Management & Research Company or an affiliate or successor with substantially the same fundamental investment objective, policies, and limitations as the fund. For purposes of limitation (x), pass-through entities and other special purpose vehicles or pools of financial assets, such as issuers of asset-backed securities or investment companies, are not considered "business enterprises." For the fund's limitations on futures and options transactions, see the section entitled "Limitations on Futures and Options Transactions" beginning on page . INVESTMENT LIMITATIONS OF PACIFIC BASIN FUND (PACIFIC BASIN FUND ) THE FOLLOWING ARE THE FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS SET FORTH IN THEIR ENTIRETY. THE FUND MAY NOT: (1) with respect to 75% of the fund's total assets, purchase the securities of any issuer (other than obligations issued or guaranteed by the government of the United States, its agencies or instrumentalities) if, as a result thereof: (i) more than 5% of the fund's total assets would be invested in the securities of such issuer or (ii) the fund would hold more than 10% of the voting securities of such issuer; (2) issue senior securities, except as permitted under the Investment Company Act of 1940; (3) borrow money, except that the fund may borrow money for temporary or emergency purposes (not for leveraging or investment) in an amount not exceeding 33 1/3% of the value of its total assets (including the amount borrowed) less liabilities (other than borrowings). Any borrowings that come to exceed 33 1/3% of a fund's total assets by reason of a decline in net assets will be reduced within three business days to the extent necessary to comply with the 33 1/3% limitation; (4) underwrite any issue of securities (except to the extent that the fund may be deemed to be an underwriter within the meaning of the Securities Act of 1933 in the disposition of restricted securities); (5) purchase the securities of any issuer (other than obligations issued or guaranteed by the government of the United States, its agencies or instrumentalities) if, as a result thereof, more than 25% of the fund's total assets (taken at current value) would be invested in the securities of issuers having their principal business activities in the same industry; (6) purchase or sell real estate (but this shall not prevent the fund from investing in marketable securities issued by companies such as real estate investment trusts which deal in real estate or interests therein and participation interests in pools of real estate mortgage loans); (7) purchase or sell physical commodities unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the fund from purchasing or selling options and futures contracts or from investing in securities or other instruments backed by physical commodities); or (8) lend any security or make any other loan if, as a result, more than 33 1/3% of the fund's total assets would be lent to other parties, but this limitation does not apply to purchases of debt securities or to repurchase agreements. Investment limitation (3) is construed in conformity with the 1940 Act, and, accordingly, "three business days" means three days, exclusive of Sundays and holidays. THE FOLLOWING INVESTMENT LIMITATIONS ARE NOT FUNDAMENTAL AND MAY BE CHANGED WITHOUT SHAREHOLDER APPROVAL. (i) The fund does not currently intend to sell securities short, unless it owns or has the right to obtain securities equivalent in kind and amount to the securities sold short, and provided that transactions in futures contracts and options are not deemed to constitute selling securities short. (ii) The fund does not currently intend to purchase securities on margin, except that the fund may obtain such short-term credits as are necessary for the clearance of transactions, and provided that margin payments in connection with futures contracts and options on futures contracts shall not constitute purchasing securities on margin. (iii) The fund may borrow money only (a) from a bank or from a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) by engaging in reverse repurchase agreements with any party (reverse repurchase agreements are treated as borrowings for purposes of fundamental investment limitation (3)). The fund will not purchase any security while borrowings representing more than 5% of its total assets are outstanding. The fund will not borrow from other funds advised by FMR or its affiliates if total outstanding borrowings immediately after such borrowing would exceed 15% of the fund's total assets. (iv) The fund does not currently intend to purchase any security if, as a result, more than 15% of its net assets would be invested in securities that are deemed to be illiquid because they are subject to legal or contractual restrictions on resale or because they cannot be sold or disposed of in the ordinary course of business at approximately the prices at which they are valued. (v) The fund does not currently intend to purchase interests in real estate investment trusts that are not readily marketable, or interests in real estate limited partnerships that are not listed on an exchange or traded on the NASDAQ National Market System if, as a result, the sum of such interests and other investments considered illiquid under limitation (iv) would exceed 15% as appropriate of the fund's net assets. (vi) The fund does not currently intend to lend assets other than securities to other parties, except by (a) lending money (up to 5% of the fund's net assets) to a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) acquiring loans, loan participations, or other forms of direct debt instruments and, in connection therewith, assuming any associated unfunded commitments of the sellers. (This limitation does not apply to purchases of debt securities or to repurchase agreements). (vii) The fund does not currently intend to (a) purchase securities of other investment companies, except in the open market where no commission except the ordinary broker's commissions is paid, or (b) purchase or retain securities issued by other open-end investment companies. Limitations (a) and (b) do not apply to securities received as dividends, through offers of exchange, or as a result of a reorganization, consolidation, or merger. (viii) The fund does not currently intend to purchase warrants, valued at the lower of cost or market, in excess of 10% of the fund's net assets. Included in that amount, but not to exceed 2% of net assets, are warrants whose underlying securities are not traded on principal domestic or foreign exchanges. Warrants acquired by the fund in units or attached to securities are not subject to these restrictions. (ix) The fund does not currently intend to invest in oil, gas, or other mineral exploration or development programs or leases. For the fund's limitations on futures and options transactions, see the section entitled "Limitations on Futures and Options Transactions" beginning on page . INVESTMENT LIMITATIONS OF SOUTHEAST ASIA FUND (SOUTHEAST ASIA FUND ) THE FOLLOWING ARE THE FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS SET FORTH IN THEIR ENTIRETY. THE FUND MAY NOT: (1) with respect to 75% of the fund's total assets, purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. government or any of its agencies or instrumentalities) if, as a result, (a) more than 5% of the fund's total assets would be invested in the securities of that issuer, or (b) the fund would hold more than 10% of the outstanding voting securities of that issuer; (2) issue senior securities, except as permitted under the Investment Company Act of 1940; (3) borrow money, except that the fund may borrow money for temporary or emergency purposes (not for leveraging or investment) in an amount not exceeding 33 1/3% of its total assets (including the amount borrowed) less liabilities (other than borrowings). Any borrowings that come to exceed this amount will be reduced within three days (not including Sundays and holidays) to the extent necessary to comply with the 33 1/3% limitation; (4) underwrite securities issued by others except to the extent that the fund may be considered an underwriter within the meaning of the Securities Act of 1933 in the disposition of restricted securities; (5) purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. government or any of its agencies or instrumentalities) if, as a result, more than 25% of the fund's total assets would be invested in the securities of companies whose principal business activities are in the same industry; (6) purchase or sell real estate unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the fund from investing in securities or other instruments backed by real estate or securities of companies engaged in the real estate business); (7) purchase or sell physical commodities unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the fund from purchasing or selling options and futures contracts or from investing in securities or other instruments backed by physical commodities); or (8) lend any security or make any other loan if, as a result, more than 33 1/3% of its total assets would be lent to other parties, but this limitation does not apply to purchases of debt securities or to repurchase agreements. THE FOLLOWING INVESTMENT LIMITATIONS ARE NOT FUNDAMENTAL AND MAY BE CHANGED WITHOUT SHAREHOLDER APPROVAL. (i) The fund does not currently intend to sell securities short, unless it owns or has the right to obtain securities equivalent in kind and amount to the securities sold short, and provided that transactions in futures contracts and options are not deemed to constitute selling securities short. (ii) The fund does not currently intend to purchase securities on margin, except that the fund may obtain such short-term credits as are necessary for the clearance of transactions, and provided that margin payments in connection with futures contracts and options on futures contracts shall not constitute purchasing securities on margin. (iii) The fund may borrow money only (a) from a bank or from a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) by engaging in reverse repurchase agreements with any party (reverse repurchase agreements are treated as borrowings for purposes of fundamental investment limitation (3)). The fund will not purchase any security while borrowings representing more than 5% of its total assets are outstanding. The fund will not borrow from other funds advised by FMR or its affiliates if total outstanding borrowings immediately after such borrowing would exceed 15% of the fund's total assets. (iv) The fund does not currently intend to purchase any security if, as a result, more than 15% of its net assets would be invested in securities that are deemed to be illiquid because they are subject to legal or contractual restrictions on resale or because they cannot be sold or disposed of in the ordinary course of business at approximately the prices at which they are valued. (v) The fund does not currently intend to purchase interests in real estate investment trusts that are not readily marketable, or interests in real estate limited partnerships that are not listed on an exchange or traded on the NASDAQ National Market System if, as a result, the sum of such interests and other investments considered illiquid under limitation (iv) would exceed 15% as appropriate of the funds net assets. (vi) The fund does not currently intend to lend assets other than securities to other parties, except by (a) lending money (up to 5% of the fund's net assets) to a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) acquiring loans, loan participations, or other forms of direct debt instruments and, in connection therewith, assuming any associated unfunded commitments of the sellers. (This limitation does not apply to purchases of debt securities or to repurchase agreements). (vii) The fund does not currently intend to (a) purchase securities of other investment companies, except in the open market where no commission except the ordinary broker's commission is paid, or (b) purchase or retain securities issued by other open-end investment companies. Limitations (a) and (b) do not apply to securities received as dividends, through offers of exchange, or as a result of a reorganization, consolidation, or merger. (x) The fund does not currently intend to purchase the securities of any issuer (other than securities issued or guaranteed by domestic or foreign governments or political subdivisions thereof) if, as a result, more than 5% of its total assets would be invested in the securities of business enterprises that, including predecessors, have a record of less than three years of continuous operation. (xi) The fund does not currently intend to purchase warrants, valued at the lower of cost or market, in excess of 10% of the fund's net assets. Included in that amount, but not to exceed 2% of net assets, are warrants whose underlying securities are not traded on principal domestic or foreign exchanges. Warrants acquired by the fund in units or attached to securities are not subject to these restrictions. (xii) The fund does not currently intend to invest in oil, gas, or other mineral exploration or development programs or leases. (xiii) The fund does not currently intend to purchase the securities of any issuer if those officers and Trustees of the Trust and those officers and directors of FMR who individually own more than 1/2 of 1% of those securities of such issuers together own more than 5% of such issuer's securities. For purposes of limitation (x), pass-through entities and other special purpose vehicles or pools of financial assets, such as issuers of asset-backed securities or investment companies, are not considered "business enterprises." For the fund's limitations on futures and options transactions, see the section entitled "Limitations on Futures and Options Transactions" beginning on page . INVESTMENT LIMITATIONS OF UNITED KINGDOM FUND (UNITED KINGDOM FUND ) THE FOLLOWING ARE THE FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS SET FORTH IN THEIR ENTIRETY. THE FUND MAY NOT: (1) issue senior securities, except as permitted under the Investment Company Act of 1940; (2) borrow money, except that the fund may borrow money for temporary or emergency purposes (not for leveraging or investment) in an amount not exceeding 33 1/3% of its total assets (including the amount borrowed) less liabilities (other than borrowings). Any borrowings that come to exceed this amount will be reduced within three days (not including Sundays and holidays) to the extent necessary to comply with the 33 1/3% limitation; (3) underwrite securities issued by others, except to the extent that the fund may be considered an underwriter within the meaning of the Securities Act of 1933 in the disposition of restricted securities; (4) purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. government or any of its agencies or instrumentalities) if, as a result, more than 25% of the fund's total assets would be invested in the securities of companies whose principal business activities are in the same industry; (5) purchase or sell real estate unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the fund from investing in securities or other instruments backed by real estate or securities of companies engaged in the real estate business); (6) purchase or sell physical commodities unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the fund from purchasing or selling options and futures contracts or from investing in securities or other instruments backed by physical commodities); or (7) lend any security or make any other loan if, as a result, more than 33 1/3% of its total assets would be lent to other parties, but this limitation does not apply to purchases of debt securities or to repurchase agreements. (8) The fund may, notwithstanding any other fundamental investment policy or limitation, invest all of its assets in the securities of a single open-end management investment company managed by Fidelity Management & Research Company or an affiliate or successor with substantially the same fundamental investment objective, policies, and limitations as the fund. THE FOLLOWING INVESTMENT LIMITATIONS ARE NOT FUNDAMENTAL AND MAY BE CHANGED WITHOUT SHAREHOLDER APPROVAL. (i) To meet federal tax requirements for qualification as a "regulated investment company," the fund limits its investments so that at the close of each quarter of its taxable year: (a) with regard to at least 50% of total assets, no more than 5% of total assets are invested in the securities of a single issuer, and (b) no more than 25% of total assets are invested in the securities of a single issuer. Limitations (a) and (b) do not apply to "Government securities" as defined for federal tax purposes. (ii) With respect to 75% of its total assets, the fund does not currently intend to purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. government or any of its agencies or instrumentalities) if, as a result, the fund would hold more than 10% of the outstanding voting securities of that issuer. (iii) The fund does not currently intend to sell securities short, unless it owns or has the right to obtain securities equivalent in kind and amount to the securities sold short, and provided that transactions in futures contracts and options are not deemed to constitute selling securities short. (iv) The fund does not currently intend to purchase securities on margin, except that the fund may obtain such short-term credits as are necessary for the clearance of transactions, and provided that margin payments in connection with futures contracts and options on futures contracts shall not constitute purchasing securities on margin. (v) The fund may borrow money only (a) from a bank or from a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) by engaging in reverse repurchase agreements with any party (reverse repurchase agreements are treated as borrowings for purposes of fundamental investment limitation (2)). The fund will not purchase any security while borrowings representing more than 5% of its total assets are outstanding. The fund will not borrow from other funds advised by FMR or its affiliates if total outstanding borrowings immediately after such borrowing would exceed 15% of the fund's total assets. (vi) The fund does not currently intend to purchase any security if, as a result, more than 15% of its net assets would be invested in securities that are deemed to be illiquid because they are subject to legal or contractual restrictions on resale or because they cannot be sold or disposed of in the ordinary course of business at approximately the prices at which they are valued. (vii) The fund does not currently intend to purchase interests in real estate investment trusts that are not readily marketable or interests in real estate limited partnerships that are not listed on an exchange or traded on the NASDAQ National Market System if, as a result, the sum of such interests and other investments considered illiquid under limitation (v i ) would exceed 15% of the fund's net assets. (viii) The fund does not currently intend to lend assets other than securities to other parties, except by (a) lending money (up to 5% of the fund's net assets) to a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) acquiring loans, loan participations, or other forms of direct debt instruments and, in connection therewith, assuming any associated unfunded commitments of the sellers. (This limitation does not apply to purchases of debt securities or to repurchase agreements.) (ix) The fund does not currently intend to (a) purchase securities of other investment companies, except in the open market where no commission except the ordinary broker's commission is paid, or (b) purchase or retain securities issued by other open-end investment companies. Limitations (a) and (b) do not apply to securities received as dividends, through offers of exchange, or as a result of a reorganization, consolidation, or merger. (x) The fund does not currently intend to purchase the securities of any issuer (other than securities issued or guaranteed by domestic or foreign governments or political subdivisions thereof) if, as a result, more than 5% of its total assets would be invested in the securities of business enterprises that, including predecessors, have a record of less than three years of continuous operation. (xi) The fund does not currently intend to invest in oil, gas, or other mineral exploration or development programs or leases. (xii) The fund does not currently intend to invest all of its assets in the securities of a single open-end management investment company managed by Fidelity Management & Research Company or an affiliate or successor with substantially the same fundamental investment objective, policies, and limitations as the fund. For purposes of limitation (x), pass-through entities and other special purpose vehicles or pools of financial assets, such as issuers of asset-backed securities or investment companies, are not considered "business enterprises." For the fund's limitations on futures and options transactions, see the section entitled "Limitations on Futures and Options Transactions" beginning on page . INVESTMENT POLICIES FOR FIDELITY EMERGING MARKETS FUND COUNTRIES NOT CONSIDERED TO HAVE EMERGING MARKETS . Countries currently not considered to have an emerging market economy are as follows: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Spain, Sweden, Switzerland, the United Kingdom, and the United States. INVESTMENT POLICIES SHARED BY THE FUNDS Each fund's investments must be consistent with its investment objective and policies. Accordingly, not all of the security types and investment techniques discussed below are eligible investments for each of the funds. AFFILIATED BANK TRANSACTIONS. A fund may engage in transactions with financial institutions that are, or may be considered to be, "affiliated persons" of the fund under the Investment Company Act of 1940. These transactions may include repurchase agreements with custodian banks; short-term obligations of, and repurchase agreements with, the 50 largest U.S. banks (measured by deposits); municipal securities; U.S. government securities with affiliated financial institutions that are primary dealers in these securities; short-term currency transactions; and short-term borrowings. In accordance with exemptive orders issued by the Securities and Exchange Commission (SEC), the Board of Trustees has established and periodically reviews procedures applicable to transactions involving affiliated financial institutions. CLOSED-END INVESTMENT COMPANIES. A fund may purchase the equity securities of closed-end investment companies to facilitate investment in certain countries. Equity securities of closed-end investment companies generally trade at a discount to their net asset value. EXPOSURE TO FOREIGN MARKETS. Foreign securities, foreign currencies, and securities issued by U.S. entities with substantial foreign operations may involve significant risks in addition to the risks inherent in U.S. investments. The value of securities denominated in foreign currencies and of dividends and interest paid with respect to such securities will fluctuate based on the relative strength of the U.S. dollar. Foreign investments involve a risk of local political, economic, or social instability, military action or unrest, or adverse diplomatic developments, and may be affected by actions of foreign governments adverse to the interests of U.S. investors. Such actions may include the possibility of expropriation or nationalization of assets, confiscatory taxation, restrictions on U.S. investment or on the ability to repatriate assets or convert currency into U.S. dollars, or other government intervention. There is no assurance that FMR will be able to anticipate these potential events or counter their effects. These risks are magnified for investments in developing countries, which may have relatively unstable governments, economies based on only a few industries, and securities markets that trade a small number of securities. Economies of particular countries or areas of the world may differ favorably or unfavorably from the economy of the United States. Foreign markets may offer less protection to investors than U.S. markets. It is anticipated that in most cases the best available market for foreign securities will be on an exchange or in over-the-counter markets located outside of the United States. Foreign stock markets, while growing in volume and sophistication, are generally not as developed as those in the United States, and securities of some foreign issuers (particularly those located in developing countries) may be less liquid and more volatile than securities of comparable U.S. issuers. Foreign security trading practices, including those involving securities settlement where fund assets may be released prior to receipt of payment, may result in increased risk in the event of a failed trade or the insolvency of a foreign broker-dealer, and may involve substantial delays. In addition, the costs of foreign investing, including withholding taxes, brokerage commissions and custodial costs, are generally higher than for U.S. investors. In general, there is less overall governmental supervision and regulation of securities exchanges, brokers, and listed companies than in the United States. It may also be difficult to enforce legal rights in foreign countries. Foreign issuers are generally not bound by uniform accounting, auditing, and financial reporting requirements and standards of practice comparable to those applicable to U.S. issuers. Some foreign securities impose restrictions on transfer within the United States or to U.S. persons. Although securities subject to such transfer restrictions may be marketable abroad, they may be less liquid than foreign securities of the same class that are not subject to such restrictions. American Depository Receipts (ADR's) as well as other "hybrid" forms of ADRs including European Depository Receipts (EDRs) and Global Depository Receipts (GDRs), are certificates evidencing ownership of shares of a foreign issuer. These certificates are issued by depository banks and generally trade on an established market in the United States or elsewhere. The underlying shares are held in trust by a custodian bank or similar financial institution in the issuer's home country. The depository bank may not have physical custody of the underlying securities at all times and may charge fees for various services, including forwarding dividends and interest and corporate actions. ADRs are an alternative to directly purchasing the underlying foreign securities in their national markets and currencies. However, ADRs continue to be subject to many of the risks associated with investing directly in foreign securities. These risks include foreign exchange risk as well as the political and economic risks of the underlying issuer's country. FOREIGN CURRENCY TRANSACTIONS. The funds may conduct foreign currency transactions on a spot (i.e., cash) basis or by entering into forward contracts to purchase or sell foreign currencies at a future date and price. The funds will convert currency on a spot basis from time to time, and investors should be aware of the costs of currency conversion. Although foreign exchange dealers generally do not charge a fee for conversion, they do realize a profit based on the difference between the prices at which they are buying and selling various currencies. Thus, a dealer may offer to sell a foreign currency to the fund at one rate, while offering a lesser rate of exchange should the fund desire to resell that currency to the dealer. Forward contracts are generally traded in an interbank market conducted directly between currency traders (usually large commercial banks) and their customers. The parties to a forward contract may agree to offset or terminate the contract before its maturity, or may hold the contract to maturity and complete the contemplated currency exchange. Each fund may use currency forward contracts for any purpose consistent with its investment objective. The following discussion summarizes the principal currency management strategies involving forward contracts that could be used by each fund. The funds may also use swap agreements, indexed securities, and options and futures contracts relating to foreign currencies for the same purposes. When a fund agrees to buy or sell a security denominated in a foreign currency, it may desire to "lock in" the U.S. dollar price of the security. By entering into a forward contract for the purchase or sale, for a fixed amount of U.S. dollars, of the amount of foreign currency involved in the underlying security transaction, the fund will be able to protect itself against an adverse change in foreign currency values between the date the security is purchased or sold and the date on which payment is made or received. This technique is sometimes referred to as a "settlement hedge" or "transaction hedge." The funds may also enter into forward contracts to purchase or sell a foreign currency in anticipation of future purchases or sales of securities denominated in foreign currency, even if the specific investments have not yet been selected by FMR. The funds may also use forward contracts to hedge against a decline in the value of existing investments denominated in foreign currency. For example, if a fund owned securities denominated in pounds sterling, it could enter into a forward contract to sell pounds sterling in return for U.S. dollars to hedge against possible declines in the pound's value. Such a hedge, sometimes referred to as a "position hedge," would tend to offset both positive and negative currency fluctuations, but would not offset changes in security values caused by other factors. A fund could also hedge the position by selling another currency expected to perform similarly to the pound sterling - for example, by entering into a forward contract to sell Deutschemarks or European Currency Units in return for U.S. dollars. This type of hedge, sometimes referred to as a "proxy hedge," could offer advantages in terms of cost, yield, or efficiency, but generally would not hedge currency exposure as effectively as a simple hedge into U.S. dollars. Proxy hedges may result in losses if the currency used to hedge does not perform similarly to the currency in which the hedged securities are denominated. Each fund may enter into forward contracts to shift its investment exposure from one currency into another. This may include shifting exposure from U.S. dollars to a foreign currency, or from one foreign currency to another foreign currency. For example, if a fund held investments denominated in Deutschemarks, the fund could enter into forward contracts to sell Deutschemarks and purchase Swiss Francs. This type of strategy, sometimes known as a "cross-hedge," will tend to reduce or eliminate exposure to the currency that is sold, and increase exposure to the currency that is purchased, much as if the fund had sold a security denominated in one currency and purchased an equivalent security denominated in another. Cross-hedges protect against losses resulting from a decline in the hedged currency, but will cause the fund to assume the risk of fluctuations in the value of the currency it purchases. Under certain conditions, SEC guidelines require mutual funds to set aside appropriate liquid assets in a segregated custodial account to cover currency forward contracts. As required by SEC guidelines, the funds will segregate assets to cover currency forward contracts, if any, whose purpose is essentially speculative. The funds will not segregate assets to cover forward contracts entered into for hedging purposes, including settlement hedges, position hedges, and proxy hedges. Successful use of currency management strategies will depend on FMR's skill in analyzing and predicting currency values. Currency management strategies may substantially change a fund's investment exposure to changes in currency exchange rates, and could result in losses to the fund if currencies do not perform as FMR anticipates. For example, if a currency's value rose at a time when FMR had hedged a fund by selling that currency in exchange for dollars, the fund would be unable to participate in the currency's appreciation. If FMR hedges currency exposure through proxy hedges, a fund could realize currency losses from the hedge and the security position at the same time if the two currencies do not move in tandem. Similarly, if FMR increases a fund's exposure to a foreign currency, and that currency's value declines, the fund will realize a loss. There is no assurance that FMR's use of currency management strategies will be advantageous to the funds or that it will hedge at an appropriate time. FOREIGN REPURCHASE AGREEMENTS. Foreign repurchase agreements may include agreements to purchase and sell foreign securities in exchange for fixed U.S. dollar amounts, or in exchange for specified amounts of foreign currency. Unlike typical U.S. repurchase agreements, foreign repurchase agreements may not be fully collateralized at all times. The value of a security purchased by a fund may be more or less than the price at which the counterparty has agreed to repurchase the security. In the event of default by the counterparty, the fund may suffer a loss if the value of the security purchased is less than the agreed-upon repurchase price, or if the fund is unable to successfully assert a claim to the collateral under foreign laws. As a result, foreign repurchase agreements may involve higher credit risks than repurchase agreements in U.S. markets, as well as risks associated with currency fluctuations. In addition, as with other emerging market investments, repurchase agreements with counterparties located in emerging markets or relating to emerging markets may involve issuers or counterparties with lower credit ratings than typical U.S. repurchase agreements. FUNDS' RIGHTS AS A SHAREHOLDER. The funds do not intend to direct or administer the day-to-day operations of any company. Each fund, however, may exercise its rights as a shareholder and may communicate its views on important matters of policy to management, the Board of Directors, and shareholders of a company when FMR determines that such matters could have a significant effect on the value of the fund's investment in the company. The activities that a fund may engage in, either individually or in conjunction with others, may include, among others, supporting or opposing proposed changes in a company's corporate structure or business activities; seeking changes in a company's directors or management; seeking changes in a company's direction or policies; seeking the sale or reorganization of the company or a portion of its assets; or supporting or opposing third party takeover efforts. This area of corporate activity is increasingly prone to litigation and it is possible that a fund could be involved in lawsuits related to such activities. FMR will monitor such activities with a view to mitigating, to the extent possible, the risk of litigation against a fund and the risk of actual liability if a fund is involved in litigation. No guarantee can be made, however, that litigation against a fund will not be undertaken or liabilities incurred. FUTURES AND OPTIONS. The following sections pertain to futures and options: Asset Coverage for Futures and Options Positions, Combined Positions, Correlation of Price Changes, Futures Contracts, Futures Margin Payments, Limitations on Futures and Options Transactions, Liquidity of Options and Futures Contracts, Options and Futures Relating to Foreign Currencies, OTC Options, Purchasing Put and Call Options, and Writing Put and Call Options. ASSET COVERAGE FOR FUTURES AND OPTIONS POSITIONS. The funds will comply with guidelines established by the Securities and Exchange Commission with respect to coverage of options and futures strategies by mutual funds, and if the guidelines so require will set aside appropriate liquid assets in a segregated custodial account in the amount prescribed. Securities held in a segregated account cannot be sold while the futures or option strategy is outstanding, unless they are replaced with other suitable assets. As a result, there is a possibility that segregation of a large percentage of a fund's assets could impede portfolio management or the fund's ability to meet redemption requests or other current obligations. COMBINED POSITIONS. A fund may purchase and write options in combination with each other, or in combination with futures or forward contracts, to adjust the risk and return characteristics of the overall position. For example, a fund may purchase a put option and write a call option on the same underlying instrument, in order to construct a combined position whose risk and return characteristics are similar to selling a futures contract. Another possible combined position would involve writing a call option at one strike price and buying a call option at a lower price, in order to reduce the risk of the written call option in the event of a substantial price increase. Because combined options positions involve multiple trades, they result in higher transaction costs and may be more difficult to open and close out. CORRELATION OF PRICE CHANGES. Because there are a limited number of types of exchange-traded options and futures contracts, it is likely that the standardized contracts available will not match a fund's current or anticipated investments exactly. The funds may invest in options and futures contracts based on securities with different issuers, maturities, or other characteristics from the securities in which they typically invest, which involves a risk that the options or futures position will not track the performance of a fund's other investments. Options and futures prices can also diverge from the prices of their underlying instruments, even if the underlying instruments match a fund's investments well. Options and futures prices are affected by such factors as current and anticipated short-term interest rates, changes in volatility of the underlying instrument, and the time remaining until expiration of the contract, which may not affect security prices the same way. Imperfect correlation may also result from differing levels of demand in the options and futures markets and the securities markets, from structural differences in how options and futures and securities are traded, or from imposition of daily price fluctuation limits or trading halts. A fund may purchase or sell options and futures contracts with a greater or lesser value than the securities it wishes to hedge or intends to purchase in order to attempt to compensate for differences in volatility between the contract and the securities, although this may not be successful in all cases. If price changes in a fund's options or futures positions are poorly correlated with its other investments, the positions may fail to produce anticipated gains or result in losses that are not offset by gains in other investments. FUTURES CONTRACTS. When a fund purchases a futures contract, it agrees to purchase a specified underlying instrument at a specified future date. When a fund sells a futures contract, it agrees to sell the underlying instrument at a specified future date. The price at which the purchase and sale will take place is fixed when the fund enters into the contract. Futures can be held until their delivery dates, or can be closed out before then if a liquid secondary market is available. The value of a futures contract tends to increase and decrease in tandem with the value of its underlying instrument. Therefore, purchasing futures contracts will tend to increase a fund's exposure to positive and negative price fluctuations in the underlying instrument, much as if it had purchased the underlying instrument directly. When a fund sells a futures contract, by contrast, the value of its futures position will tend to move in a direction contrary to the market. Selling futures contracts, therefore, will tend to offset both positive and negative market price changes, much as if the underlying instrument had been sold. FUTURES MARGIN PAYMENTS. The purchaser or seller of a futures contract is not required to deliver or pay for the underlying instrument unless the contract is held until the delivery date. However, both the purchaser and seller are required to deposit "initial margin" with a futures broker, known as a futures commission merchant (FCM), when the contract is entered into. Initial margin deposits are typically equal to a percentage of the contract's value. If the value of either party's position declines, that party will be required to make additional "variation margin" payments to settle the change in value on a daily basis. The party that has a gain may be entitled to receive all or a portion of this amount. Initial and variation margin payments do not constitute purchasing securities on margin for purposes of a fund's investment limitations. In the event of the bankruptcy of an FCM that holds margin on behalf of a fund, the fund may be entitled to return of margin owed to it only in proportion to the amount received by the FCM's other customers, potentially resulting in losses to the fund. LIMITATIONS ON FUTURES AND OPTIONS TRANSACTIONS. Japan Fund has filed and each of the remaining funds intend to file a notice of eligibility for exclusion from the definition of the term "commodity pool operator" with the Commodity Futures Trading Commission (CFTC) and the National Futures Association, which regulate trading in the futures markets , before engaging in any purchases or sales of futures contracts or options on futures contracts . The funds intend to comply with Rule 4.5 under the Commodity Exchange Act, which limits the extent to which the funds can commit assets to initial margin deposits and option premiums. In addition, each fund will not: (a) sell futures contracts, purchase put options, or write call options if, as a result, more than 25% of the fund's total assets would be hedged with futures and options under normal conditions; (b) purchase futures contracts or write put options if, as a result, the fund's total obligations upon settlement or exercise of purchased futures contracts and written put options would exceed 25% of its total assets; or (c) purchase call options if, as a result, the current value of option premiums for call options purchased by the fund would exceed 5% of the fund's total assets. These limitations do not apply to options attached to or acquired or traded together with their underlying securities, and do not apply to securities that incorporate features similar to options. The above limitations on the funds' investments in futures contracts and options, and the funds' policies regarding futures contracts and options discussed elsewhere in this Statement of Additional Information, are not fundamental policies and may be changed as regulatory agencies permit. LIQUIDITY OF OPTIONS AND FUTURES CONTRACTS. There is no assurance a liquid secondary market will exist for any particular options or futures contract at any particular time. Options may have relatively low trading volume and liquidity if their strike prices are not close to the underlying instrument's current price. In addition, exchanges may establish daily price fluctuation limits for options and futures contracts, and may halt trading if a contract's price moves upward or downward more than the limit in a given day. On volatile trading days when the price fluctuation limit is reached or a trading halt is imposed, it may be impossible for a fund to enter into new positions or close out existing positions. If the secondary market for a contract is not liquid because of price fluctuation limits or otherwise, it could prevent prompt liquidation of unfavorable positions, and potentially could require a fund to continue to hold a position until delivery or expiration regardless of changes in its value. As a result, a fund's access to other assets held to cover its options or futures positions could also be impaired. OPTIONS AND FUTURES RELATING TO FOREIGN CURRENCIES. Currency futures contracts are similar to forward currency exchange contracts, except that they are traded on exchanges (and have margin requirements) and are standardized as to contract size and delivery date. Most currency futures contracts call for payment or delivery in U.S. dollars. The underlying instrument of a currency option may be a foreign currency, which generally is purchased or delivered in exchange for U.S. dollars, or may be a futures contract. The purchaser of a currency call obtains the right to purchase the underlying currency, and the purchaser of a currency put obtains the right to sell the underlying currency. The uses and risks of currency options and futures are similar to options and futures relating to securities or indices, as discussed above. The funds may purchase and sell currency futures and may purchase and write currency options to increase or decrease their exposure to different foreign currencies. A fund may also purchase and write currency options in conjunction with each other or with currency futures or forward contracts. Currency futures and options values can be expected to correlate with exchange rates, but may not reflect other factors that affect the value of a fund's investments. A currency hedge, for example, should protect a Yen-denominated security from a decline in the Yen, but will not protect a fund against a price decline resulting from deterioration in the issuer's creditworthiness. Because the value of a fund's foreign-denominated investments changes in response to many factors other than exchange rates, it may not be possible to match the amount of currency options and futures to the value of the fund's investments exactly over time. OTC OPTIONS. Unlike exchange-traded options, which are standardized with respect to the underlying instrument, expiration date, contract size, and strike price, the terms of over-the-counter (OTC) options (options not traded on exchanges) generally are established through negotiation with the other party to the option contract. While this type of arrangement allows the funds greater flexibility to tailor an option to its needs, OTC options generally involve greater credit risk than exchange-traded options, which are guaranteed by the clearing organization of the exchanges where they are traded. PURCHASING PUT AND CALL OPTIONS. By purchasing a put option, a fund obtains the right (but not the obligation) to sell the option's underlying instrument at a fixed strike price. In return for this right, the fund pays the current market price for the option (known as the option premium). Options have various types of underlying instruments, including specific securities, indices of securities prices, and futures contracts. The fund may terminate its position in a put option it has purchased by allowing it to expire or by exercising the option. If the option is allowed to expire, the fund will lose the entire premium it paid. If the fund exercises the option, it completes the sale of the underlying instrument at the strike price. A fund may also terminate a put option position by closing it out in the secondary market at its current price, if a liquid secondary market exists. The buyer of a typical put option can expect to realize a gain if security prices fall substantially. However, if the underlying instrument's price does not fall enough to offset the cost of purchasing the option, a put buyer can expect to suffer a loss (limited to the amount of the premium paid, plus related transaction costs). The features of call options are essentially the same as those of put options, except that the purchaser of a call option obtains the right to purchase, rather than sell, the underlying instrument at the option's strike price. A call buyer typically attempts to participate in potential price increases of the underlying instrument with risk limited to the cost of the option if security prices fall. At the same time, the buyer can expect to suffer a loss if security prices do not rise sufficiently to offset the cost of the option. WRITING PUT AND CALL OPTIONS. When a fund writes a put option, it takes the opposite side of the transaction from the option's purchaser. In return for receipt of the premium, the fund assumes the obligation to pay the strike price for the option's underlying instrument if the other party to the option chooses to exercise it. When writing an option on a futures contract, the fund will be required to make margin payments to an FCM as described above for futures contracts. A fund may seek to terminate its position in a put option it writes before exercise by closing out the option in the secondary market at its current price. If the secondary market is not liquid for a put option the fund has written, however, the fund must continue to be prepared to pay the strike price while the option is outstanding, regardless of price changes, and must continue to set aside assets to cover its position. If security prices rise, a put writer would generally expect to profit, although its gain would be limited to the amount of the premium it received. If security prices remain the same over time, it is likely that the writer will also profit, because it should be able to close out the option at a lower price. If security prices fall, the put writer would expect to suffer a loss. This loss should be less than the loss from purchasing the underlying instrument directly, however, because the premium received for writing the option should mitigate the effects of the decline. Writing a call option obligates a fund to sell or deliver the option's underlying instrument, in return for the strike price, upon exercise of the option. The characteristics of writing call options are similar to those of writing put options, except that writing calls generally is a profitable strategy if prices remain the same or fall. Through receipt of the option premium, a call writer mitigates the effects of a price decline. At the same time, because a call writer must be prepared to deliver the underlying instrument in return for the strike price, even if its current value is greater, a call writer gives up some ability to participate in security price increases. ILLIQUID INVESTMENTS are investments that cannot be sold or disposed of in the ordinary course of business at approximately the prices at which they are valued. Under the supervision of the Board of Trustees, FMR determines the liquidity of a fund's investments and, through reports from FMR, the Board monitors investments in illiquid instruments. In determining the liquidity of a fund's investments, FMR may consider various factors, including (1) the frequency of trades and quotations, (2) the number of dealers and prospective purchasers in the marketplace, (3) dealer undertakings to make a market, (4) the nature of the security (including any demand or tender features), and (5) the nature of the marketplace for trades (including the ability to assign or offset the fund's rights and obligations relating to the investment). Investments currently considered by the funds to be illiquid include repurchase agreements not entitling the holder to payment of principal and interest within seven days, over-the-counter options, and non-government stripped fixed-rate mortgage-backed securities. Also, FMR may determine some restricted securities, government-stripped fixed-rate mortgage-backed securities, loans and other direct debt instruments, emerging market securities, and swap agreements to be illiquid. However, with respect to over-the-counter options a fund writes, all or a portion of the value of the underlying instrument may be illiquid depending on the assets held to cover the option and the nature and terms of any agreement the fund may have to close out the option before expiration. In the absence of market quotations, illiquid investments are priced at fair value as determined in good faith by a committee appointed by the Board of Trustees. If through a change in values, net assets, or other circumstances, a fund were in a position where more than 15% of its net assets was invested in illiquid securities, it would seek to take appropriate steps to protect liquidity. INDEXED SECURITIES. Each fund may purchase securities whose prices are indexed to the prices of other securities, securities indices, currencies, precious metals or other commodities, or other financial indicators. Indexed securities typically, but not always, are debt securities or deposits whose value at maturity or coupon rate is determined by reference to a specific instrument or statistic. Gold-indexed securities, for example, typically provide for a maturity value that depends on the price of gold, resulting in a security whose price tends to rise and fall together with gold prices. Currency-indexed securities typically are short-term to intermediate-term debt securities whose maturity values or interest rates are determined by reference to the values of one or more specified foreign currencies, and may offer higher yields than U.S. dollar-denominated securities of equivalent issuers. Currency-indexed securities may be positively or negatively indexed; that is, their maturity value may increase when the specified currency value increases, resulting in a security that performs similarly to a foreign-denominated instrument, or their maturity value may decline when foreign currencies increase, resulting in a security whose price characteristics are similar to a put on the underlying currency. Currency-indexed securities may also have prices that depend on the values of a number of different foreign currencies relative to each other. The performance of indexed securities depends to a great extent on the performance of the security, currency, or other instrument to which they are indexed, and may also be influenced by interest rate changes in the United States and abroad. At the same time, indexed securities are subject to the credit risks associated with the issuer of the security, and their values may decline substantially if the issuer's creditworthiness deteriorates. Recent issuers of indexed securities have included banks, corporations, and certain U.S. government agencies. Indexed securities may be more volatile than the underlying instruments. INTERFUND BORROWING AND LENDING PROGRAM. Pursuant to an exemptive order issued by the SEC, each fund has received permission to lend money to, and borrow money from, other funds advised by FMR or its affiliates. Interfund loans and borrowings normally extend overnight, but can have a maximum duration of seven days. Loans may be called on one day's notice. A fund will lend through the program only when the returns are higher than those available from other short-term instruments (such as repurchase agreements), and will borrow through the program only when the costs are equal to or lower than the cost of bank loans. A fund may have to borrow from a bank at a higher interest rate if an interfund loan is called or not renewed. Any delay in repayment to a lending fund could result in a lost investment opportunity or additional borrowing costs. ISSUER LOCATION. FMR determines where an issuer is located by looking at such factors as its country of organization, the primary trading market for its securities, and the location of its assets, personnel, sales, and earnings. The issuer of a security is located in a particular country if: 1) the security is issued or guaranteed by the government of the country; or 2) the issuer is organized under the laws of the country, derives at least 50% of its revenues or profits from goods sold, investments made or services performed in the country, or has at least 50% of its assets located in the country. LOANS AND OTHER DIRECT DEBT INSTRUMENTS. Direct debt instruments are interests in amounts owed by a corporate, governmental, or other borrower to lenders or lending syndicates (loans and loan participations), to suppliers of goods or services (trade claims or other receivables), or to other parties. Direct debt instruments are subject to each fund's policies regarding the quality of debt securities. Purchasers of loans and other forms of direct indebtedness depend primarily upon the creditworthiness of the borrower for payment of principal and interest. Direct debt instruments may not be rated by any nationally recognized rating service. If a fund does not receive scheduled interest or principal payments on such indebtedness, the fund's share price and yield could be adversely affected. Loans that are fully secured offer a fund more protections than an unsecured loan in the event of non-payment of scheduled interest or principal. However, there is no assurance that the liquidation of collateral from a secured loan would satisfy the borrower's obligation, or that the collateral could be liquidated. Indebtedness of borrowers whose creditworthiness is poor involves substantially greater risks and may be highly speculative. Borrowers that are in bankruptcy or restructuring may never pay off their indebtedness, or may pay only a small fraction of the amount owed. Direct indebtedness of developing countries also involves a risk that the governmental entities responsible for the repayment of the debt may be unable, or unwilling, to pay interest and repay principal when due. Investments in loans through direct assignment of a financial institution's interests with respect to a loan may involve additional risks to a fund. For example, if a loan is foreclosed, the fund could become part owner of any collateral, and would bear the costs and liabilities associated with owning and disposing of the collateral. In addition, it is conceivable that under emerging legal theories of lender liability, the fund could be held liable as a co-lender. Direct debt instruments may also involve a risk of insolvency of the lending bank or other intermediary. Direct debt instruments that are not in the form of securities may offer less legal protection to a fund in the event of fraud or misrepresentation. In the absence of definitive regulatory guidance, each fund relies on FMR's research in an attempt to avoid situations where fraud or misrepresentation could adversely affect the fund. A loan is often administered by a bank or other financial institution that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. Unless, under the terms of the loan or other indebtedness, each fund has direct recourse against the borrower, it may have to rely on the agent to apply appropriate credit remedies against a borrower. If assets held by the agent for the benefit of a fund were determined to be subject to the claims of the agent's general creditors, the fund might incur certain costs and delays in realizing payment on the loan or loan participation and could suffer a loss of principal or interest. Direct indebtedness purchased by each fund may include letters of credit, revolving credit facilities, or other standby financing commitments obligating the fund to pay additional cash on demand. These commitments may have the effect of requiring the fund to increase its investment in a borrower at a time when it would not otherwise have done so, even if the borrower's condition makes it unlikely that the amount will ever be repaid. Each fund will set aside appropriate liquid assets in a segregated custodial account to cover its potential obligations under standby financing commitments. Each fund limits the amount of total assets that it will invest in any one issuer or in issuers within the same industry (see limitations (1) and (5) for Canada Fund , Europe Fund , Europe Capital Appreciation Fund , Japan Fund, Latin America Fund , Pacific Basin Fund , and Southeast Asia Fund ; limitations (1) and (7) for Emerging Markets Fund ; and limitations (4) and (i) for France Fund , Germany Fund, Hong Kong and China Fund , Japan Small Companies Fund , Nordic Fund , and United Kingdom Fund ). For purposes of these limitations, each fund generally will treat the borrower as the "issuer" of indebtedness held by the fund. In the case of loan participations where a bank or other lending institution serves as financial intermediary between each fund and the borrower, if the participation does not shift to the fund the direct debtor-creditor relationship with the borrower, SEC interpretations require the fund, in appropriate circumstances, to treat both the lending bank or other lending institution and the borrower as "issuers" for these purposes. Treating a financial intermediary as an issuer of indebtedness may restrict a fund's ability to invest in indebtedness related to a single financial intermediary, or a group of intermediaries engaged in the same industry, even if the underlying borrowers represent many different companies and industries. LOWER-QUALITY DEBT SECURITIES. While the market for high-yield corporate debt securities has been in existence for many years and has weathered previous economic downturns, the 1980s brought a dramatic increase in the use of such securities to fund highly leveraged corporate acquisitions and restructurings. Past experience may not provide an accurate indication of the future performance of the high-yield bond market, especially during periods of economic recession. The market for lower-quality debt securities may be thinner and less active than that for higher-quality debt securities, which can adversely affect the prices at which the former are sold. If market quotations are not available, lower-quality debt securities will be valued in accordance with procedures established by the Board of Trustees, including the use of outside pricing services. Judgment plays a greater role in valuing high-yield corporate debt securities than is the case for securities for which more external sources for quotations and last-sale information are available. Adverse publicity and changing investor perceptions may affect the ability of outside pricing services to value lower-quality debt securities and a fund's ability to dispose of these securities. Since the risk of default is higher for lower-quality debt securities, FMR's research and credit analysis are an especially important part of managing securities of this type held by a fund. In considering investments for the fund, FMR will attempt to identify those issuers of high-yielding securities whose financial condition is adequate to meet future obligations, has improved, or is expected to improve in the future. FMR's analysis focuses on relative values based on such factors as interest or dividend coverage, asset coverage, earnings prospects, and the experience and managerial strength of the issuer. Each fund may choose, at its expense or in conjunction with others, to pursue litigation or otherwise to exercise its rights as a security holder to seek to protect the interests of security holders if it determines this to be in the best interest of the fund's shareholders. REAL ESTATE-RELATED INSTRUMENTS include real estate investment trusts, commercial and residential mortgage-backed securities, and real estate financings. Real estate-related instruments are sensitive to factors such as real estate values and property taxes, interest rates, cash flow of underlying real estate assets, overbuilding, and the management skill and creditworthiness of the issuer. Real estate-related instruments may also be affected by tax and regulatory requirements, such as those relating to the environment. REPURCHASE AGREEMENTS. In a repurchase agreement, a fund purchases a security and simultaneously commits to sell that security back to the original seller at an agreed-upon price. The resale price reflects the purchase price plus an agreed-upon incremental amount which is unrelated to the coupon rate or maturity of the purchased security. To protect the fund from the risk that the original seller will not fulfill its obligation, the securities are held in an account of the fund at a bank, marked-to-market daily, and maintained at a value at least equal to the sale price plus the accrued incremental amount. While it does not presently appear possible to eliminate all risks from these transactions (particularly the possibility that the value of the underlying security will be less than the resale price, as well as delays and costs to a fund in connection with bankruptcy proceedings), it is each fund's current policy to engage in repurchase agreement transactions with parties whose creditworthiness has been reviewed and found satisfactory by FMR. RESTRICTED SECURITIES generally can be sold in privately negotiated transactions, pursuant to an exemption from registration under the Securities Act of 1933, or in a registered public offering. Where registration is required, a fund may be obligated to pay all or part of the registration expense and a considerable period may elapse between the time it decides to seek registration and the time it may be permitted to sell a security under an effective registration statement. If, during such a period, adverse market conditions were to develop, a fund might obtain a less favorable price than prevailed when it decided to seek registration of the security. REVERSE REPURCHASE AGREEMENTS. In a reverse repurchase agreement, a fund sells a portfolio instrument to another party, such as a bank or broker-dealer, in return for cash and agrees to repurchase the instrument at a particular price and time. While a reverse repurchase agreement is outstanding, the fund will maintain appropriate liquid assets in a segregated custodial account to cover its obligation under the agreement. A fund will enter into reverse repurchase agreements only with parties whose creditworthiness has been found satisfactory by FMR. Such transactions may increase fluctuations in the market value of the fund's assets and may be viewed as a form of leverage. SECURITIES LENDING. A fund may lend securities to parties such as broker-dealers or institutional investors, including Fidelity Brokerage Services, Inc. (FBSI). FBSI is a member of the New York Stock Exchange and a subsidiary of FMR Corp. Securities lending allows a fund to retain ownership of the securities loaned and, at the same time, to earn additional income. Since there may be delays in the recovery of loaned securities, or even a loss of rights in collateral supplied should the borrower fail financially, loans will be made only to parties deemed by FMR to be of good standing. Furthermore, they will only be made if, in FMR's judgment, the consideration to be earned from such loans would justify the risk. FMR understands that it is the current view of the SEC Staff that a fund may engage in loan transactions only under the following conditions: (1) the fund must receive 100% collateral in the form of cash or cash equivalents (e.g., U.S. Treasury bills or notes) from the borrower; (2) the borrower must increase the collateral whenever the market value of the securities loaned (determined on a daily basis) rises above the value of the collateral; (3) after giving notice, the fund must be able to terminate the loan at any time; (4) the fund must receive reasonable interest on the loan or a flat fee from the borrower, as well as amounts equivalent to any dividends, interest, or other distributions on the securities loaned and to any increase in market value; (5) the fund may pay only reasonable custodian fees in connection with the loan; and (6) the Board of Trustees must be able to vote proxies on the securities loaned, either by terminating the loan or by entering into an alternative arrangement with the borrower. Cash received through loan transactions may be invested in any security in which a fund is authorized to invest. Investing this cash subjects that investment, as well as the security loaned, to market forces (i.e., capital appreciation or depreciation). SECURITIES OF SMALL CAPITALIZATION COMPANIES. Smaller capitalization companies may have limited product lines, markets, or financial resources. These conditions may make them more susceptible to setbacks and reversals. Therefore, their securities may have limited marketability and may be subject to more abrupt or erratic market movements than securities of larger companies. SHORT SALES "AGAINST THE BOX." If a fund enters into a short sale against the box, it will be required to set aside securities equivalent in kind and amount to the securities sold short (or securities convertible or exchangeable into such securities) and will be required to hold such securities while the short sale is outstanding. The fund will incur transaction costs, including interest expenses, in connection with opening, maintaining, and closing short sales against the box. SOVEREIGN DEBT OBLIGATIONS. Each fund may purchase sovereign debt instruments issued or guaranteed by foreign governments or their agencies, including debt of Latin American nations or other developing countries. Sovereign debt may be in the form of conventional securities or other types of debt instruments such as loans or loan participations. S overeign debt of developing countries may involve a high degree of risk, and m a y be in default or present the risk of default. Governmental entities responsible for repayment of the debt may be unable or unwilling to repay principal and interest when due, and may require renegotiation or rescheduling of debt payments. In addition, prospects for repayment of principal and interest may depend on political as well as economic factors. SWAP AGREEMENTS. Swap agreements can be individually negotiated and structured to include exposure to a variety of different types of investments or market factors. Depending on their structure, swap agreements may increase or decrease a fund's exposure to long- or short-term interest rates (in the United States or abroad), foreign currency values, mortgage securities, corporate borrowing rates, or other factors such as security prices or inflation rates. Swap agreements can take many different forms and are known by a variety of names. A fund is not limited to any particular form of swap agreement if FMR determines it is consistent with the fund's investment objective and policies. In a typical cap or floor agreement, one party agrees to make payments only under specified circumstances, usually in return for payment of a fee by the other party. For example, the buyer of an interest rate cap obtains the right to receive payments to the extent that a specified interest rate exceeds an agreed-upon level, while the seller of an interest rate floor is obligated to make payments to the extent that a specified interest rate falls below an agreed-upon level. An interest rate collar combines elements of buying a cap and selling a floor. Swap agreements will tend to shift a fund's investment exposure from one type of investment to another. For example, if the fund agreed to exchange payments in dollars for payments in foreign currency, the swap agreement would tend to decrease the fund's exposure to U.S. interest rates and increase its exposure to foreign currency and interest rates. Caps and floors have an effect similar to buying or writing options. Depending on how they are used, swap agreements may increase or decrease the overall volatility of a fund's investments and its share price. The most significant factor in the performance of swap agreements is the change in the specific interest rate, currency, or other factors that determine the amounts of payments due to and from a fund. If a swap agreement calls for payments by the fund, the fund must be prepared to make such payments when due. In addition, if the counterparty's creditworthiness declined, the value of a swap agreement would be likely to decline, potentially resulting in losses. Each fund expects to be able to eliminate its exposure under swap agreements either by assignment or other disposition, or by entering into an offsetting swap agreement with the same party or a similarly creditworthy party. Each fund will maintain appropriate liquid assets in a segregated custodial account to cover its current obligations under swap agreements. If a fund enters into a swap agreement on a net basis, it will segregate assets with a daily value at least equal to the excess, if any, of the fund's accrued obligations under the swap agreement over the accrued amount the fund is entitled to receive under the agreement. If a fund enters into a swap agreement on other than a net basis, it will segregate assets with a value equal to the full amount of the fund's accrued obligations under the agreement. WARRANTS. Warrants are securities that give a fund the right to purchase equity securities from the issuer at a specific price (the strike price) for a limited period of time. The strike price of warrants typically is much lower than the current market price of the underlying securities, yet they are subject to similar price fluctuations. As a result, warrants may be more volatile investments than the underlying securities and may offer greater potential for capital appreciation as well as capital loss. Warrants do not entitle a holder to dividends or voting rights with respect to the underlying securities and do not represent any rights in the assets if the issuing company. Also, the value of the warrant does not necessarily change with the value of the underlying securities and a warrant ceases to have value if it is not exercised prior to expiration date. These factors can make warrants more speculative than other types of investments. SPECIAL CONSIDERATIONS AFFECTING EUROPE New developments surrounding the creation of a unified common market in Europe have helped to reduce physical and economic barriers promoting the free flow of goods and services throughout Western Europe. These new developments could make this new unified market one of the largest in the world. However, in 1993 Europe's economies began to slow and subsequently slid into recession as tight monetary conditions and a lack of progress toward inflation convergence and budgetary consolidation in many countries weakened consumer and business confidence. More generally, the turbulence in foreign exchange markets since the middle of 1992 and escalating tensions over trade contributed to increased uncertainty in many countries. The U.S. dollar continued on its downward track with respect to both the German mark and many other of Europe's currencies such as the Italian lira, the Spanish peseta and the Swedish krona which have been affected by political uncertainties and fiscal problems. Subsequently, Europe's economies began to improve in 1995 as continued growth in the United States and the Southeast Asian countries provided the foundation for an export-led recovery. This recovery was aided by a sharp rebound of the U.S. dollar after reaching postwar lows in the spring of 1995. The Eastern European countries, after several years of declining output, have generally shown dramatic growth in 1994 and 1995. Despite formidable obstacles and major differences among countries and regions, many nations are making substantial progress in their efforts to become market-oriented economies. However, these economies are becoming increasingly disparate and the experience of countries in the region varies markedly. Those nations making the most successful transitions include Poland, the Czech Republic and Hungary, while some of the former Soviet republics continue to suffer from the consequences of the break-up of the Union and have not made much progress in implementing effective market oriented reforms. Key aspects of the reform and stabilization efforts have not yet been fully implemented, and there remain risks of policy slippage. In the Russian Federation and most other countries of the former Soviet Union, economic conditions are of particular concern because of economic instability due to political unrest and armed conflicts in many regions. Notwithstanding the continued economic difficulties in many countries, recent positive developments offer hope for a cooperative growth strategy in the near term, which could also permit a strengthening of global economic performance over the medium term. Many developing countries are reaping the fruits of sustained reform and stabilization efforts. Efforts to enhance assistance to countries affected by the transition to market-based trading systems occurring in central Europe and the former Soviet Union, and to low-income countries to support strengthened stabilization and restructuring efforts, are moving forward. In Europe, exchange market tensions have eased, interest rates have been falling and may continue to do so as evidence accumulates of the waning of inflationary pressures. The European Community (EC) consists of Belgium, Denmark, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, and the United Kingdom (the member states). In 1986, the member states of the EC signed the "Single European Act", an agreement committing these countries to the establishment of a market among themselves, unimpeded by internal barriers or hindrances to the free movement of goods, persons, services, or capital. To meet this goal, a series of directives have been issued to the member states. Compliance with these directives is designed to eliminate three principal categories of barriers: (1) physical frontiers, such as customs posts and border controls; (2) technical barriers (which include restrictions operating within national territories) such as regulations and norms for goods and services (product standards); discrimination against foreign bids (bids by other EC members) on public purchases; or restrictions on foreign requests to establish subsidiaries; and (3) fiscal frontiers, notably the need to levy value-added taxes, tariffs, or excises on goods or services imported from other EC states. The ultimate goal of this project is to achieve a large unified domestic European market in which available resources would be more efficiently allocated through the elimination of the above-mentioned barriers and the added costs associated with those barriers. Elimination of these barriers would simplify product distribution networks, allow economies of scale to be more readily achieved, and free the flow of capital and other resources. The Maastricht Treaty on economic and monetary union (EEMU) attempts to provide its members with a stable monetary framework consistent with the EC's broad economic goals. But until the EMU takes effect, which is intended to occur between 1997 and 1999, the community will face the need to reinforce monetary cooperation in order to reduce the risk of a recurrence of tensions between domestic and external policy objectives. The total European market, as represented by both EC and non-EC countries, consists of over 370 million consumers, making it larger currently than either the United States or Japanese markets. European businesses compete nationally and internationally in a wide range of industries including: telecommunications and information services, roads and transportation, building materials, food and beverages, broadcast and media, financial services, electronics, and textiles. Actual and anticipated actions on the part of member states to conform to the unified Europe directives have prompted interest and activity not only by European firms, but also by foreign entities anxious to establish a presence in Europe that will result from these changes. Indications of the effect of this response to a unified Europe can be seen in the areas of mergers and acquisitions, corporate expansion and development, GNP growth, and national stock market activity. The early experience of the former centrally planned economies has already demonstrated the crucially important link between structural reforms, macroeconomic stabilization, and successful economic transformation. Among the central European countries, the Czech Republic, Hungary, and Poland have made the greatest progress in structural reform; inflationary pressures there have abated following price liberalization, and output has begun to recover. These achievements will be difficult to sustain, however, in the absence of strong efforts to contain the large fiscal deficits that have accompanied the considerable losses of output and tax revenue since the start of the reform process. In the Baltic countries there are encouraging signs that reforms are taking hold and are being supported by strong stabilization efforts. In most other countries of the former Soviet Union, in contrast, inadequate stabilization efforts now threaten to lead to hyper-inflation, which could derail the reform process. Inflation, which had abated following the immediate impact of price liberalization in early 1992, surged to extremely high levels in late 1992 and early 1993. The main reason for this development has been excessive credit expansion to the government and to state enterprises. The transformation process is being seriously hampered by he widespread subsidization of inefficient enterprises and the resulting misallocation of resources. The lack of effective economic and monetary cooperation among the countries of the former Soviet Union exacerbates other problems by severely constraining trade flows and impeding inflation control. Partly as a result of these difficulties, some countries have decided that the introduction of separate currencies offers the best scope for avoiding hyper-inflation and for improving economic conditions. This development can facilitate the implementation of stronger stabilization programs. Economic conditions in the former Soviet Union have continued to deteriorate. Real GDP in Russia fell 11.9 percent in 1993, after an 18 percent decline in 1992. In many other countries of the region, output losses have been even larger. These declines reflect the adjustment difficulties during the early stages of the transition, high rates of inflation, the compression of imports, disruption in trade among the countries of the former Soviet Union, and uncertainties about the reform process itself. Large-scale subsidies are delaying industrial restructuring and are exacerbating the fiscal situation. A reversal of these adverse factors is not anticipated in the near term and output is expected to decline further in most of these countries. Economic conditions appear to have improved for some of the transition economies of central Europe during the past year. Following three successive years of output declines, there has been a turnaround in the former Czech and Slovak Federal Republic, Hungary and Poland: growth in private sector activity and strong exports, especially to Western Europe, now appear to have contained the fall in output. Most central European countries in transition have achieved positive real growth in 1994 and early 1995 as market reform depend. The strength of the projected output gains will depend crucially on the ability of the reforming countries to contain fiscal deficits and inflation and on their continued access to, and success in, export markets. A number of their governments, including those of Hungary, and Poland, are currently implementing or considering reforms directed at political and economic liberalization, including efforts to foster multi-party political systems, decentralize economic planning, and move toward free market economies. At present, no Eastern European country has developed stock markets but Poland, Hungary and the Czech Republic have small securities markets in operation. Ethnic and civil conflict continued to rate throughout the former Yugoslavia. The outcome is uncertain. Both the EC and Japan, among others, have made overtures to establish trading arrangements and assist in the economic development of the Eastern European nations. In the rest of Europe, monetary policy and financial market developments have been dominated by the currency turmoil that began in September 1992. At the same time, conditions are improving for significant reductions of official interest rates in Europe, which should help to contain recessionary forces and provide support to the overall economic recovery in the region by early 1996. With the passage of the General Agreement on Trade and Tariffs (GATT) earlier this year, Europe has taken a step forward to resist protectionist pressures. Interest rates continue to decline, but some countries' tight monetary conditions remain an obstacle to stronger growth and a threat to exchange market stability. However, in the long-term, economic unification of Europe could prove to be an engine for domestic and international growth. FRANCE has welcomed foreign trade and foreign investment and, along with Germany, has emerged as a driving force within the Union. More than a quarter of France's total sales, and 22% of its employment, derive from foreign-owned companies. The country ranks high in manufacturing productivity, while its unionization rate of 12% is the lowest in the Union. The workforce is well-educated, yet labor is cheaper than in Germany. Both national and local officials have been actively soliciting international companies, particularly those with technological businesses encouraging them to build factories and subsidiaries in France. Recognizing the need for decentralization, the country has taken steps to build up industrial and technological areas away from Paris, in cities such as Marseilles. The government of prime minister Edouard Balladur has drastically cut the corporate tax rate from one-half to one-third, and has pledged to keep inflation at its current very low levels. Its successor under Alain Juppe is expected to continue with these policies. However, France faces two problems that are not uncommon in Europe: persistent high unemployment (currently around 12%) and a high budget deficit. These problems, although apparently not out of control, serve to hamper prosperity and will probably not be solved anytime soon. As of the end of 1994, France had the fourth largest Gross Domestic Product in the world and was the fifth largest market, with market capitalization equal to U.S. $265 billion (the U.S. market for that year was the largest, with $278 trillion in capitalization). There are nearly a thousand listed companies in the equity markets, and trading is on a par with capitalization by world standards. The French equity securities market is relatively small compared to the United States' market. Trading practices are regulated by the French securities exchange authorities and the sale and resale of securities are generally less regulated than in the United States. Issuers of securities in France are not subject to the same degree of regulation as are U.S. issuers with respect to such matters as insider trading rules, tender offer regulation, shareholder proxy requirements, and the timely disclosure of information. In addition, accounting, auditing, and financial reporting standards are not comparable to United States standards and, therefore, less information may be available to investors investing in French securities than would be available in respect of investments in the securities of U.S. issuers in the United States. The French securities market may be more volatile and is less liquid than the major U.S. markets. As in the case of all foreign investments, the fund's investments may be adversely affected by any increase in applicable foreign taxes or by political, economic, or diplomatic developments. A significant number of French enterprises are owned, directly or indirectly, in whole or in part, by the French state. In 1986, the French government announced an extensive privatization program, which was discontinued following the parliamentary elections of June 1988, after 31 state-controlled enterprises had been sold to the public. Recently, the previous French government had announced a new program of privatization which is expected to continue under the current government. However, investors should be aware that a future change of government, market, or economic factors in France could result in a change in policy on privatization. Under current law, subject to certain exceptions, shares of French companies may be owned by, and transferred to, non-residents of France without limitation for portfolio investment. However, existing foreign direct investment regulations provide that the acquisition by any non-resident of the European Union of a controlling interest in a French company is subject to prior approval of the Treasury Department of the French Ministry of Economy. Under existing administrative rulings, ownership of 20% or more of a listed company's share capital or, in the case of unlisted companies, ownership of 33 1/3% or more, is regarded as a controlling interest in such company, but a lower percentage might be held to constitute a controlling interest in certain circumstances. Direct investments by non-European Union residents, including the acquisition, creation or expansion of French companies, and the increase in control of French companies engaged in agricultural, industrial, or commercial, financial, or real estate activities, require prior approval by French authorities. In general, prior approval by French authorities is always necessary (even if the investor is a European Union resident) if the investment is to be made in certain specific industries such as the defense and health industries. Pursuant to current legislation relating to privatization of certain state-controlled companies, transfer by the French authorities directly or indirectly to non-European Union persons and entities under non-European Union control of equity shares of a French company in connection with its privatization may not exceed a total of 20% of such company's share capital. A lower percentage may be adopted if considered vital to protect national interests. Furthermore, the Ministry of Economy has the power to transfer an ordinary share of such company's stock held by the French State into a "special share," thereby possibly giving the Ministry of Economy a right of approval for an unlimited period with respect to the ownership by any single person, or group of persons acting together, or an equity interest representing more than 10% of such company's share capital and/or the right to designate one or two representatives of the French State to the board of directors of such company, and/or the right of refusal with respect to decisions to sell assets or grant guarantees which are considered against national interests. GERMANY is generally regarded as the chief player in the Union. Germany is highly integrated into the world's economy and capital markets, and should continue to benefit from an ongoing world recovery from recession. From 1988 through 1992, real Gross National Product in Germany grew at a healthy average of 3.5%. But 1993, which saw GNP down 2.1%, was the worst year since the beginning of the postwar WIRTSCHAFTSWUNDER. In 1994, Germany began to recover from recession, but rising interest rates kept the lid on market advances. As of the end of 1993, Germany was the fourth largest market in the world, with market capitalization equal to U.S. $450 billion (the U.S. market for that year was number 1, with $5.2 trillion in capitalization). In terms of the number of listed companies, Germany ranked further down, at number 14 with 426 listed companies (by comparison, the U.S. had over 7,600 listed companies). It follows that the average size of German companies is large: over $1 billion in 1993, which placed it number 3 in that category. Exports, a key part of the German economy, may be poised to increase, although the weak U.S. dollar means that German goods will be more expensive in the important U.S. market, thus reducing demand. While Germany's equity market appears to be highly valued by some measures, the market as a whole is small compared to the economy. European investors have lagged their U.S. counterparts in making equity investments, although this has been changing. At the same time, new issues are not abundant in Germany, meaning that any increasing market demand will be focused largely on existing issues. The high valuations of German stocks may also prove supportable by the country's central role in the Union and its success in developing the Eastern part of the country and the former Eastern bloc countries for its manufacturing purposes. In Germany the progress of the European Union continues to be the slow but steady and the costs of assimilating the former East German states continues to pose the greatest financial pressure. Costs for this project were greatly underestimated: since unification in 1990, the government has had to transfer money to the east in the amount of 4% - 5% of Gross Domestic Product. To raise this money, the government has had to levy extra taxes. These taxes have effectively offset advances in consumer income, and have lead to the political necessity of down sizing government and maintaining a tight monetary policy. In order to comply with the terms of Maastricht, Germany must cut government debt from a projected 64% of GDP next year to less than 60%. The failure, either political or economic, of Germany's ability to cut spending while also finding the money to restore the east to fiscal health could have repercussions for the German stock market. Germany is also facing pressures to reform its welfare and social security programs, and must also comply with a court order to reform its tax system. While the country does not appear to be in any risk of governmental crisis, all of the factors mentioned above could lead to a shift in domestic policies, with a potential shift in the political landscape not out of the question. Much of Germany's fiscal health and prosperity over the next few years depends on the continued growth of capitalism in the former Eastern bloc states. If this growth does not materialize, or if political events intercede, there could be negative financial repercussions for Germany. In 1995, Germany could be at risk of over expansion. Rapid growth of production could bring the economy to the limits of current capacity, which would likely prompt the central bank to tighten the money supply. However, if Germany opts for slow growth in the short term in order to pave the way for longer-term stability, profits over the short term could suffer. NORDIC COUNTRIES. Denmark is a member of the Union. Sweden, Finland, and Norway recently agreed to join the Union. These Nordic countries have a combined total population of only 23 million, roughly equal to that of the state of California. Productivity, as measured by Gross Domestic Product per capita, is well above the European average in all countries except Finland, where it stands at about 90% of the average. The Nordic countries appear poised to embark on a path of rapid growth. Real GDP in Sweden is expected to increase by 2.5% for 1995, and by 4.0% to 4.5% in Denmark, Finland, and Norway. At the end of 1993, all four Nordic countries ranked in the top 35 worldwide in terms of market capitalization and total market value traded per year, meaning that the Nordic markets tend to be fairly liquid for their size. The chief industries in the region are machinery, textiles, furniture, electronics, dairy, metals, ship building, clothing, engineering, chemicals, food processing, fishing, paper, oil and gas, autos, and shipping. The number of listed companies is small; in 1993 Denmark had more than 250, but no other Nordic country had more than 125, fewer even than such countries as Peru, Sri Lanka, and Iran. As a result of the high level of market capitalization and the low number of listed companies, Sweden, Finland, and Norway rank among the top 25 countries in the world for average company size. Foreign ownership of Nordic stocks has increased dramatically, growing from U.S. $316 million in 1992 to $7.4 billion in 1994. One reason for the appeal of Nordic stocks is that the companies in these countries tend to be widely diversified in the geographic areas in which they do business; thus the performance of a company may not be as closely linked to the state of the local economy as it is in many countries. There are, however, potential disincentives to foreign investors. The non-refundable dividend withholding tax rate is currently 30% for both Denmark and Sweden, and 25% for both Finland and Norway. The establishment of stronger links with their neighbors to the south will likely be accompanied by substantial change in several aspects of the Nordic countries' economies, particularly in the area of government spending. The extensive social welfare system that was the envy of much of the world in the 1960s and 1970s has proved to be extremely costly during the subsequent decades of more modest prosperity. In Norway, these benefits were financed through oil and gas exports, but in other Nordic countries they have tended to result in growing government debts and deficits. The populations of the Nordic countries have become accustomed to generous benefits for unemployment, sick leave, child care, elder care, and general public welfare, along with state-provided medical care. With the exception of Denmark, each country also has a history of supporting an inefficient agricultural sector with subsidies ranging up to 75% (the recent average for Europe has been approximately 35% - 45%). Public spending on social programs in Sweden accounted for a full one-third of GDP during the 1980s. Unemployment remains fairly high, ranging from 6% in Norway to 19% in Finland. The income scale in the Nordic countries tends to be comparatively flat, both with regard to age and skill; thus there is little income advantage to be gained by career advancement. Almost half of personal disposable income received by Swedes was the result of transfer payments, a system for redistributing wealth. In Norway, the number of industrial jobs has fallen by 100,000 since 1972, while government employment has doubled. Once the Nordic countries become members of the Union, and once the full terms of the Maastricht Treaty and other Union agreements are implemented, there will be strong pressures on the Nordic countries to bring their government spending more closely into line with those of Europe. Farms, particularly those closest to the European continent, will either be forced to improve efficiency or close down, while exports of Norwegian oil and gas and Finnish timber and mineral resources will need to find a place in the Union's trade policies if the Nordic countries are to prosper. National debts, which are high in Finland and Sweden, will need to be reduced. How well these goals can be accomplished without reversing the long-awaited growth trends that are now emerging in the Nordic countries remains to be seen. The Nordic countries will also be challenged to keep their most skilled workers. Such workers are essential to the region's significant manufacturing and engineering businesses, but the implementation of the Union will make it easier for Nordic workers to seek employment in other member states. And while a favorable corporate tax structure has aided the largest Nordic companies in amassing the capital to make investments, many of them have been investing outside the region rather than domestically. While these problems are not insurmountable, a failure to address them could impair the prosperity of the Nordic countries, and with it the performance of their markets. UNITED KINGDOM. Occupying most of the land area of the British Isles, the U.K. includes England, Wales, Scotland, and Northern Ireland. As of the end of 1993, the U.K. was the third largest market in the world, with market capitalization equal to U.S. $1.2 trillion (the U.S. market for that year was the world's largest market, with $5.2 trillion in capitalization). There are 1,650 listed companies in the U.K. equity markets, and trading volume is on a par with capitalization by world standards. The U.K. ranks tenth worldwide in terms of average company size. The relatively high number of listings and the relatively low average company size mean that the behavior of the U.K. stock market is less likely to be dominated by the trading actions of a few large stocks. The U.K. experienced a long post-war recession which ended in 1992; however, it did not escape the effects of worldwide recession in 1993 and 1994. Exports were hurt by the lack of demand from depressed foreign markets. Still, the U.K. was one of a very few European economies to post positive GDP numbers for 1993, with a 2% growth rate. Foreign investment is strong in the U.K., particularly in Wales and Scotland, which have made international efforts to attract investors and development by foreign companies. At the end of 1992, more than 3,500 U.S. companies had made investments in the U.K., for a total of $78 billion, a number that represents nearly 40% of all U.S. investment in the member states. This far exceeds U.S. investment in Germany, which was $35 billion in 1992. The companies of other nations have been attracted to the U.K. for investing as well, drawn by low labor costs, relative political stability, and tax incentives. Foreign investment is crucial to the continued economic strength of the U.K. While foreign investment has been high, there are signs that it may not continue to grow at the same rate. Other Union members are actively recruiting investors, advertising their increased level of participation in the Union as a key to important trade benefits. Even some major British corporations, such as British Petroleum and Pilkington, have moved their headquarters onto the European continent. The U.K. lags in the percentage of its population that goes on to higher education, an important factor for technology-based businesses. Despite the opening of the new English Channel tunnel rail link to the continent, the government's spending on railways and other parts of the transportation infrastructure is well behind that of France and Germany. Going forward, the U.K. appears poised for continued growth. Business investment has risen since 1992, and as asset utilization approaches current capacity, investment should continue to rise, with businesses needing to expand beyond their current size in order to meet increasing demand. Unemployment began to fall in early 1993, and employment growth resumed. While the U.K. is a member of the Union, domestic sentiment has not been wholly favorable towards Union involvement. A failed bid to tie the pound to the European Currency Unit (ECU), the proposed single currency for the Union, resulted in higher inflation and almost forced British Prime Minister John Major out of office. This event did not discourage negative sentiments. As a result, the U.K. has not been as actively involved in working with the architects of Union policies as it might have been, and has thus been less successful in ensuring that its needs and viewpoints were reflected in these policies. So far, the U.K. has allowed Germany and France to play the major roles in shaping the Union framework. The Conservative government, which was strongly entrenched during the 1980s under Margaret Thatcher, has not been as powerful since that time and currently faces the possibility that it may lose control of the government. A shift of sentiment towards the Labour Party, or a further weakening of the Conservative's power, could produce a government that lacks the focus or the political will to address domestic issues and to play a strong role in the Union. Like many European countries, the U.K. has been plagued with persistent high inflation, and it has run a current account trade deficit for many years. Both of these factors have been a hindrance to prosperity, and both are likely to continue to exist in some form in the future. The conditions that have given rise to these developments are changeable, and there is no assurance that reforms will continue or that their goals will be achieved. REAL GDP ANNUAL RATE OF GROWTH (ANNUAL % CHANGE) 1994 Denmark 4.6 % France 2.5 % G e rmany 2.9 % Ita ly 2.5 % Net herlands 2.4 % S pain 1.9 % Sw itzerland 2.0 % Un ited Kingdom 3.8 % Source: World Economic Outlook, May 199 5 (International Monetary Fund) For national stock market index performance, please see the section on Performance beginning on page . SPECIAL CONSIDERATIONS AFFECTING JAPAN, THE PACIFIC BASIN, AND SOUTHEAST ASIA Many Asian countries may be subject to a greater degree of social, political and economic instability than is the case in the United States and Western European countries. Such instability may result from (i) authoritarian governments or military involvement in political and economic decision-making; (ii) popular unrest associated with demands for improved political, economic, and social conditions; (iii) internal insurgencies; (iv) hostile relations with neighboring countries; and (v) ethnic, religions, and racial disaffection. The economies of most of the Asian countries continue to depend heavily upon international trade and are accordingly affected by protective trade barriers and the economic conditions of their trading partners, principally, the United States, Japan, China and the European Community. The enactment by the United States or other principal trading partners of projectionist trade legislation, reduction of foreign investment in the local economies, and general declines in the international securities markets could have a significant adverse effects upon the securities markets of the Asian countries. The success of market reforms, a surge in infrastructure spending have fueled rapid growth in many developing countries in Asia. Rapidly rising household incomes have fostered large middle classes and new waves of consumer spending. Increases in infrastructure spending and consumer spending have made domestic demand the growth engine for these countries. Thus their growth now depends less upon exports to OECD countries. While exports may no longer be the sole source of growth for developing economies, improved competitiveness in exports markets has contributed to growth in many of these nations. The increased productivity of many Asian countries has enabled them to achieve, or continue, their status as top exporters while improving their national living standards. Thailand has one of the fastest-growing stock markets in the world. The manufacturing sector is becoming increasingly sophisticated and is benefiting from export-oriented investing. The manufacturing and service sectors continue to account for the bulk of Thailand's economic growth. The agricultural sector continues to become less important. The government has followed fairly sound fiscal and monetary policies, aided by increased tax receipts from a fast moving economy. The government also continues to move ahead with new projects - especially telecommunications, roads and port facilities - needed to refurbish the country's overtaxed infrastructure. The country enjoys an able bureaucracy, which has maintained economic policy during the country's many coups. In recent years, the risk of a coup has diminished, but corruption remains widespread. In terms of GDP, industrial standards and level of education, South Korea is second only to Japan in Asia. It enjoys the benefits of a diversified economy with well-developed sectors in electronics automobiles, textiles and shoe manufacture steel and shipbuilding among others. The driving force behind the economy's dynamic growth has been the planned development of an export-oriented economy in a vigorously entrepreneurial society. Real GDP grew about 8.3% in 1994. Both Koreas joined the United Nations separately in late 1991, creating another forum for negotiation and joint cooperation. Reunification of North Korea and South Korea could have a detrimental effect on the economy of South Korea. Indonesia is a mixed economy with many socialist institutions and central planning but with a recent emphasis on deregulation and private enterprise. Like Thailand, Indonesia has extensive natural wealth yet with a large and rapidly increasing population. Dependent on oil exports during the 1980s, its manufactured products now predominate, contributing 21% of GDP. Indonesia's development is progressing smoothly, and it has become the world's 12 largest economy. Malaysia has one of the fastest-growing economies in the Asian-Pacific region. Malaysia has become the world's third-largest producer of semiconductor devices (after the U.S. and Japan) and the world's largest exporter of semiconductor devices. More remarkable is the country's ability to achieve rapid economic growth with relative price stability as the government followed prudent fiscal/monetary policies. Malaysia's high export dependence level leaves it vulnerable to a recession in the Organization for Economic Cooperation and Development countries or a fall in world commodity prices. Singapore has an open entrepreneurial economy with strong service and manufacturing sectors and excellent international trading links derived from its history. During the 1970s and the early 1980s the economy expanded rapidly, achieving an average annual growth rate of 9%. Per capita GDP is among the highest in Asia. Singapore holds a position as a major oil refining and services center. JAPAN. Japan currently has the second-largest GDP in the world. The Japanese economy has grown substantially over the last three decades. Its growth rate averaged over 5% in the 1970s and 1980s. However in 1994, the growth rate in Japan slowed to 0.6% and their budget showed a deficit of 7.8% of GDP. Despite small rallies and market gains Japan has been plagued with economic sluggishness. Economic conditions have weakened considerably in Japan since October 1992. The boom in Japan's equity and property markets during the expansion of the late 1980's supported high rates of investment and consumer spending on durable goods, but both of these components of demand have now retreated sharply following the decline in asset prices. It is suffering through its worst recession in two decades. Profits have fallen sharply, unemployment has reached a historical high of 3.2% and consumer confidence is low. The banking sector continues to suffer from non-performing loans. Nine discount rate cuts since its 6% peak in 1991, a succession of fiscal stimulus packages, support plans for the debt-burdened financial system and spending for reconstruction following the Kobe earthquake should help to contain the recessionary forces, but substantial uncertainties remain. The general government position has deteriorated as a result of weakening economic growth, as well as stimulative measures taken recently to support economic activity and to restore financial stability. In addition to a cyclical downturn, Japan is suffering through structural adjustments. Like the Europeans, the Japanese have seen a deterioration of their competitiveness due to high wages, a strong currency and structural rigidities. Japan has also become a mature industrial economy and, as a result, will see its long-term growth rate slow down over the next ten years. Finally, Japan is reforming its political process and deregulating its economy. This has brought about turmoil, uncertainty and a crisis of confidence. Japan is heavily dependent upon international trade and, accordingly, has been and may continue to be adversely affected by trade barriers and other protectionist or retaliatory measures of, as well as economic conditions in the U.S. and other countries with which they trade. Industry, the most important sector of the economy is heavily dependent on imported raw materials and fuels. Japan's major industries are in the engineering, electrical, textile, chemical, automobile fishing and telecommunication fields. Japan imports iron ore, copper, and many forest products. Only 19% of its land is suitable for cultivation. Japan's agricultural economy is subsidized and protected. It is about 50% self-sufficient in food production. Even though Japan produces a minute rice surplus, it is dependent upon large imports of wheat, sorghum and soybeans from other countries. Japan's high volume of exports such as automobiles machine tools and semiconductors have caused trade tensions with other countries, particularly the United States. Some trading agreements between the countries have reduced the friction caused by the current trade imbalance. A record high value of the yen in first half of 1995 threatened to derail Japan's recovery from a long economic downturn, mainly because it made Japanese products more expensive overseas and eroded the value of foreign earnings when repatriated to Japan. However, the recent ease of the yen has created expectations that Japanese earnings will improve for the fiscal year ending March 1996. The relaxing of official and de facto barriers to imports, or hardships created by any pressures brought by trading partners, could adversely affect Japan's economy. A substantial rise in world oil or commodity prices could also have a negative affect. The strength of the yen itself may prove an impediment to strong continued exports, because of the high prices it means for Japanese goods sold in other countries. Because the Japanese economy is so dependent on exports, any fall-off in exports may be seen as a sign of economic weakness, which may adversely affect the market and the fund. The Tokyo Stock Exchange is the largest of eight exchanges in Japan which has very well developed primary and secondary equity markets. The Tokyo Stock Exchange is followed by the Osaka Stock Exchange and the Nagoya Stock Exchange. These three exchanges divide the market for domestic stocks into two sections, with newly listed companies and smaller companies assigned to the second section and larger companies assigned to the first section. However, the growth of the Japanese securities market has not been without its setbacks. In 1990, the Japanese stock market, as measured by the Toyko Stock Price Index (TOPIX), began a spectacular decline which lasted through the middle of 1992. During this period the TOPIX lost over 55% of its value. Since then, the market has failed to rebound substantially, and the TOPIX remains far closer today to its bottom in 1992 than to its peak in 1989 and 1990. The decline in the Japanese securities markets has contributed to a weakness in the Japanese economy, and the impact of a further decline cannot be ascertained. The common stocks of many Japanese companies continue to trade at high price-earnings ratios in comparison with those in the United States, even after recent market decline. Differences in accounting methods make it difficult to compare the earnings of Japanese companies with those of companies in other countries, especially the United States. While the Japanese governmental system itself seems stable, the dynamics of the country's politics have been unpredictable in recent years. The economic crisis of 1990-92 brought the downfall of the conservative Liberal Democratic Party, which had ruled since 1955. Since then, the country has seen a series of unstable multi-party coalitions and several prime ministers come and go, because of politics as well as personal scandals. While there appears to be no reason for anticipating civic unrest, it is impossible to know when the political instability will end and what trade and fiscal policies might be pursued by the government that emerges. With the general economic sluggishness of the past few years, banks have seen an increase in non-performing assets. While at the moment these do not appear to pose any major threat to the health of the institutions, any continued or intensified decline in the Japanese economy could throw additional strain onto the country's banking institutions. Geologically, Japan is located in a volatile area of the world, and has historically been vulnerable to earthquakes, volcanoes and other natural disasters. As demonstrated by the Kobe earthquake in January of 1995, in which 5,000 people were killed and billions of dollars of damage was sustained, these natural disasters can be significant enough to affect the country's economy. As in the U.S. and other markets, small company stocks are typically more volatile than large company stocks, reacting more extremely to good or bad news. Since Japan's market is dominated by large stocks (the average company size in Japan is the largest anywhere in the world), the behavior of the Japanese stock market in general and of the small-stock segment in particular also may be affected by the trading activity on a relatively small number of large-company stocks to a much greater degree than is typically seen in the U.S. Further, during periods of economic difficulty, small companies can find it harder to compete or survive. Since August 1990, the shares of smaller Japanese companies have underperformed those of larger companies, as they tend to do in periods of declining industrial production. However, the reverse tends to apply in periods of economic recovery. There are two factors that may influence the future corporate structure of Japan, to the benefit of smaller Japanese companies. First, Japan is likely to follow the pattern set by the economies of the United Kingdom and Germany in reducing its dependence on manufacturing and increasing the contribution of service industries to the economy. This should benefit small companies, many of which are less capital intensive and often more entrepreneurial. Also, many sectors of the Japanese economy, such as food, retail, distribution, and financial services, are subject to regulations which are in the process of being released or removed. Deregulation should provide opportunities for smaller, more flexible companies. In addition, the removal of artificial price restrictions and reductions in personal taxes could lead to an upturn in Japanese domestic consumption as a percentage of Gross Domestic Product, which is currently significantly lower than in the United States. This increase in spending could also benefit smaller Japanese firms. However, the continuation of economic weakness could make it difficult for small companies to prosper, or could make their stocks appear unattractive to investors. The influence of the factors mentioned above, against a background of potential recovery in the Japanese economy, may result in an attractive long-term opportunity for selective investment in smaller Japanese companies, and that such companies may outperform larger Japanese companies over the longer term if economic recovery is realized. Australia has a prosperous Western-style capitalist economy, with a per capita GDP comparable to levels in industrialized Western European countries. Economic growth accelerated markedly in 1994 as robust domestic spending boosted activity. It is rich in natural resources and is the world's largest exporter of beef and wool, second-largest for mutton, and it is among the lop wheat exporters. Australia is also a major exporter of minerals, metals and fossil fuels. Due to the nature of its exports, a downturn in world commodity prices can have a big impact on its economy. HONG KONG AND CHINA. Hong Kong's impending return to Chinese dominion in 1997 has not initially had a positive effect on its economic growth which was vigorous in the 1980s. Although China has committed by treaty to preserve the economic and social freedoms enjoyed in Hong Kong for 50 years after regaining control of Hong Kong, the continuation of the current form of the economic system in Hong Kong after the reversion will depend on the actions of the government of China. Business confidence in Hong Kong, therefore, can be significantly affected by such developments, which in turn can affect markets and business performance. In preparation for 1997, Hong Kong has continued to develop trade with China, where it is the largest foreign investor, while also maintaining its long-standing export relationship with the United States (U.S.). Spending on infrastructure improvements is a significant priority of the colonial government while the private sector continues to diversify abroad based on its position as an established international trade center in the Far East. It is important to note that a substantial portion of the companies listed on the Hong Kong Stock Exchange are involved in real estate related business. China's economy may be described as transitional. While the government still controls the production and pricing in a major portion of the country's economy, the country has also seen a sharp rise in capitalist activities. The opening of China to U.S. trade by President Nixon in 1972 marked an important step towards capitalism, but the most significant step was the liberalization brought about by Deng Xiaoping, who assumed power in the late 1970s. Deng believed that the advancement of the economy was essential to the advancement of socialism an argument which effectively neutralized the traditional Party objections to capitalism and foreign investment. Under Deng's rule, China has prospered. At the time he came to power, more than a quarter of the population was living in absolute poverty; today, less than 10% of the population is in that category. The real incomes of many workers have doubled and tripled, and some 80 million urban dwellers are able to afford middle-class luxuries such as cosmetics and Western-style fast food. China's economy has grown at the extraordinary rate of 10% per year on average over the past decade, with the industrial segment leading the way: industrial growth in China exceeded 20% a year in 1992 and 1993. China's economic growth itself has not been smooth, however, being characterized by spurts of almost uncontrolled growth alternating with periods of harsh austerity measures. Both the speed and the erratic nature of the growth have caused inefficiencies and dislocations within China, including troublesome inflation rates of 20% - 30% per year over the past five years. Most of China's trading activity is funnelled through Hong Kong. The value of the Hong Kong market has grown from U.S. $54 million in 1986 to more than $380 million in 1993, with China estimated as being the largest investor in the market. Among Asian markets, only the Japanese market is larger than Hong Kong, worldwide, Hong Kong ranked 6th at the end of 1993. China itself has two stock exchanges that are set up to accommodate foreign investment, in Shenzhen and in Shanghai. In both cases, foreign trading is limited to a special class of shares (Class B) which was created for that purpose. Only foreign investors may own Class B shares, but the government must approve sales of Class B shares among foreign investors. As of December 1994, there were 54 companies with Class B shares on the two exchanges, for a total Class B market capitalization of U.S. $2.1 billion. In Shanghai, all "B" shares are denominated in Chinese renminbi but all transactions in "B" shares must be settled in US dollars, and all distributions made on "B" shares are payable in U.S. dollars, the exchange rate being the weighted average exchange rate for the U.S. dollar as published by the Shanghai Foreign Exchange Adjustment Center. In Shenzhen, the purchase and sale prices for "B" shares are quoted in Hong Kong dollars. Dividends and other lawful revenue derived from "B" shares are calculated in renminbi but payable in Hong Kong dollars, the rate of exchange being the average rate published by the Shenzhen Foreign Exchange Adjustment Center. There are no foreign exchange restrictions on the repatriation of gains made on or income derived from "B" shares, subject to the repayment of taxes imposed by China thereon. Since 1978, China has designated certain areas of the country where overseas investors can receive special investment incentives and tax concessions in order to attract foreign investment. There are five Special Economic Zones (Shenzhen, Shanton, and Zhuhai in Guangdong Province, Xiamen in Fujiam Province, and Hainan Island, which itself is a province). Fourteen coastal cities have been designated as "open cities" and certain Open Economic Zones have been established in coastal areas. Shanghai has established the Pudong New Area. Twenty seven High and New Technology Industrial Development Zones have been approved where preferential treatment is given to enterprises which are confirmed as technology intensive. Economically and financially, China is categorized as an emerging nation, and thus presents the investor with many of the general risks that are typical of such markets. However, in the case of China, there are two main risk factors than eclipse all others: the political uncertainty surrounding the succession to Deng and the 1997 relinquishment of Hong Kong to China by Great Britain. If economic growth and market liberalization have been the major positive results of Deng's tenure, the drawbacks include a significant potential for political instability. Deng's policies have had the effect of making the Communist Party, and indeed much of the government, obsolete, however, both the Party and the government remain firmly entrenched. There is little possibility of predicting what type of government will eventually stabilize itself in post-Deng China, but the possibilities range from old-line conservative to ambitiously pro-growth. Even if the latter type should prevail, there is no assurance that such a government would succeed in controlling growth or inflation even to the fairly crude degree that Deng's government has managed. In the meantime, the economic weight of government entities is one of the significant factors driving inflation in China and acting to impede commerce and economic efficiency. The Party does not govern directly, but only by controlling access to official government positions and by monitoring government and private activities. Thus each governmental body has its own corresponding body within the Party, leading to a double bureaucracy which is both inefficient and highly prone to corruption. While the fact of economic growth has been the result of planning, the nature, speed, and extent of that growth have not been tightly controlled or carefully planned. The combination of a burgeoning economy, a weakened central government, and a power vacuum left by the demise of Deng may prove volatile in the coming years, however bright China's long-term future may be. Nor does China have a unified legal system or a set of national laws governing business and securities trading practices on which to fall back. There is still no free press, no viable opposition party, and no right to freedom of expression. The massacre in Tienanmen Square in June of 1989 is only the most recent reminder of this. Much speculation centers around what China will do when it comes back into possession of Hong Kong. Naturally, much of the answer will depend on who is in power in China at that time, which is unknown. However, tensions that have arisen between the current governor, Chris Patten, and the Chinese government have led to speculation that China may try to punish Hong Kong by sabotaging it economically, an option which is considered a real possibility even though it would not necessarily be to China's economic advantage to do so. The Hong Kong market's spectacular growth over the past decade has not come without much volatility, and there is no reason to doubt that volatility will continue to characterize the market, not only because of political uncertainties but because the market has traditionally been dominated by the actions of a few large trading blocs. China is greatly dependent on foreign trade, particularly with Japan, the U.S., and Germany. If political events become severe in China, there is always the danger that the U.S. or other nations could alter their trade stance towards China, which could hurt its economy by reducing exports. However, China's exports continue to rise strongly while imports are also expected to rise and may outstrip exports in terms of growth rates. The strength of the economy and the weakness of the government could lead to substantially higher inflation in coming years, which would erode investors' earnings through the mechanism of changing rates of currency exchange. Even under the most favorable circumstances, inflation is likely to remain very high by Western standards. At the other extreme, a tightening of government-imposed austerity measures could choke economic growth and serve to discourage foreign investment, which would likely result in lower prices for Class B shares. A particularly significant factor within the region over the last 13 years has been the increasing influence which China has had in the determination of the economic development of certain countries. This influence has been principally in providing manufacturing facilities, in providing a market for goods and services, and in creating a demand for export outlets, both directly and indirectly, through Hong Kong. The effect of China's economic development has been an increase in economic integration among the countries in the China region. The links between China and Hong Kong and China and other countries within the region, where there is a significant Chinese element of the population, have by now been strengthened to a degree which makes a reversal unlikely. Moreover, although these links have been developed to a stage where economic co-operation in trade operates smoothly, the full potential of the market, both in terms of domestic consumption and of export growth, has hardly begun to be realized. EMERGING MARKETS: ASIA MARKET CAPITALIZATION IN U.S. DOLLARS JUNE 1995 Millions In dia 147,210 I nd onesia 52,243 Kor e a 178,670 Ma lay sia 224,176 P ak istan 9,469 Phi lippines 55,038 S ri Lanka 2,259 Taiwa n 186,822 Th ailand 150,584 Source: IFC (International Finance Corporation , Second Quarter 1995) REAL GDP ANNUAL RATE OF GROWTH (ANNUAL % CHANGE) 1994 C hina 12.0 % Ho ng Kong 5.7 % I n dia 4.9 % Ind o nesia 7.0 % Ja pa n n/a Kor ea 8.3 % Malay sia 8.5 % Ph ilipp ines 4.5 % Sin gapor e 7.0 % Taiw an 6.2 % Th ai land 8.5 % Source: World Economic Outlook, May 1995 (International Marketing Fund) For national stock market index performance, please see the section on Performance beginning on page . SPECIAL CONSIDERATIONS AFFECTING CANADA Canada occupies the northern part of North America and is the second-largest country in the world (3.97 million square miles in area) extending from the Atlantic Ocean to the Pacific. The companies in which the fund may invest may include those involved in the energy industry, industrial materials (chemicals, base metals, timber, and paper), and agricultural materials (grain cereals). The securities of companies in the energy industry are subject to changes in value and dividend yield which depend, to a large extent, on the price and supply of energy fuels. Rapid price and supply fluctuations may be caused by events relating to international politics, energy conservation, and the success of exploration projects. Canada is one of the world's leading industrial countries, as well as a major exporter of agricultural products. Canada is rich in natural resources such as zinc, uranium, nickel, gold, silver, aluminum, iron, and copper. Forest covers over 44% of its land area, making Canada a leading world producer of newsprint. The economy of Canada is strongly influenced by the activities of companies and industries involved in the production and processing of natural resources. Canada is a major producer of hydroelectricity, oil, and gas. The business activities of companies in the energy field may include the production, generation, transmission, marketing, control, or measurement of energy or energy fuels. Economic prospects are changing due to recent government attempts to reduce restrictions against foreign investment. Canadian securities are not considered by FMR to have the same level of risk as other nation's securities. Canadian and U.S. companies are generally subject to similar auditing and accounting procedures, and similar government supervision and regulation. Canadian markets are more liquid than many other foreign markets and share similar characteristics with U.S. markets. The political system is more stable than in some other foreign countries, and the Canadian dollar is generally less volatile relative to the U.S. dollars. Many factors affect and could have an adverse impact on the financial condition of Canada, including social, environmental, and economic conditions; factors which are not within the control of Canada. In Canada, where recovery is not yet as firmly established as in the United States, interest rates have been coming down after a sharp rise associated with exchange market developments in the fall of 1992. In light of the cyclical situation, there should be room for a further easing of interest rates without jeopardizing the progress made toward price stability. Continued perseverance in reducing the structural budget deficit also is required. FMR is unable to predict what effect, if any, such factors would have on instruments held in the fund's portfolio. The U.S. - Canada Free Trade Agreement which became effective in January 1989, will be phased in over a period of 10 years. This agreement will remove tariffs on U.S. technology and Canadian agricultural products in addition to removing trade barriers affecting other important sectors of each country's economy. Canada, the U.S. and Mexico have implemented the North American Free Trade Agreement which was entered into in 1994. This cooperation is expected to lead to increased trade and to reduce barriers. The majority of new equity issues or initial public offerings in Canada are through underwritten offerings. The fund may elect to participate in these issues. SPECIAL CONSIDERATIONS AFFECTING LATIN AMERICA Latin America is a region rich in natural resources such as oil, copper, tin, silver, iron ore, forestry, fishing, livestock, and agriculture. The region has a large population (over 300 million) representing a large domestic market. The region has been transitional over the last five years from the stagnant 1980s which were characterized by poor economic policies, higher international interest rates, and limited access to new foreign capital. High inflation and low economic growth have given way to stable manageable inflation rates and higher economic growth. Changes in political leadership, the implementation of market-oriented economic policies, such as privatization, trade reform and monetary reform have been among the recent steps taken to modernize the Latin American economies and to regenerate growth in the region. Various trade agreements have also been formed within the region such as the Andean Pact, Mercosur and NAFTA. The largest of these is NAFTA, which was implemented on January 1, 1994. Latin American equity markets can be extremely volatile and in the past have shown little correlation with the U.S. market. Currencies are typically weak, but most are now relatively free floating, and it is not unusual for the currencies to undergo wide fluctuations in value over short periods of time due to changes in the market. Mexico's economy has been transformed significantly over the last 6-7 years. In the past few years the government has sold the telephone company, the major steel companies, the banks and many others. The major state ownership remaining is in the oil sector and the electricity sector. The U.S. is Mexico's major trading partner, accounting for two-thirds of its exports and imports. The government in consultation with international economic agencies, is implementing programs to stabilize the economy and foster growth. For example, Mexico, the U.S. and Canada implemented the North American Free Trade Agreement. This cooperation is expected to lead to increased trade and reduced barriers. In the early 1980s Mexico experienced a foreign debt crisis. By 1987, foreign debt had reached prohibitive levels, accounting for 90 to 95 percent of GDP, thus draining Mexico of all its resources. By the end of 1994, a large current account deficit, fueled in part by expansionary policy, and the burden of its large national debt forced the Mexican government to devalue the peso, triggering a severe crisis of confidence. Both the crisis and the measures taken to stabilize the economy since, have led to severely reduced domestic demand, which has been only partially offset by positive trade-related activity. Brazil entered the 1990s with declining real growth, runaway inflation, a n unserviceable foreign debt of $122 billion, and a lack of policy direction. Over the past two years, Brazil was able to stabilize its domestic economy through a relentless process of balancing the government budget, the privatization of state enterprises, deregulation and reduction of red tape and introducing greater competition in the domestic business environment. Inflation has been reduced to about 3% a month from 50% a month since mid 1994. A major long-run strength is Brazil's natural resources. Iron ore, bauxite, tin, god, and forestry products make up some of Brazil's basic natural resource base, which includes some of the largest mineral reserves in the world. In terms of population, Brazil is the sixth-largest in the world with about 155 million people and represents a huge domestic market. Chile, like Brazil, is endowed with considerable mineral resources, in particular copper. Economic reform has been ongoing in Chile for at least 15 years, but political democracy has only recently returned to Chile. Privatization of the public sector beginning in the early 1980s has bolstered the equity market. A well organized pension system has created a long-term domestic investor base. Argentina is strong in wheat production and other foodstuffs and livestock ranching. A well-educated and skilled population boasts one of the highest literacy rates in the region. The country has been ravaged by decades of extremely high inflation and political instability. Thanks to structural reforms, the revitalized Argentine economy has been among the top three fastest growing economies in the world over the last three years. The newly created Argentine economic institutions have integrated the country with the rest of the world, leaving the state to concentrate on its essential functions. Privatization is ongoing and should reduce the amount of external debt outstanding. The markets for labor, capital and goods and services have been de-regulated. Nearly all non-tariff barriers and export taxes have been eliminated, the tariff structure simplified and tariffs sharply reduced. Venezuela has substantial oil reserves. External debt is being renegotiated, and the government is implementing economic reform in order to reduce the size of the public sector. Internal gasoline prices, which are one-third those of international prices, are being increased in order to reduce subsidies. Plans for privatization and exchange and interest rate liberalization are examples of recently introduced reforms. EMERGING MARKETS: LATIN AMERICA MARKET CAPITALIZATION IN U.S. DOLLARS JUNE 1995 Millions Ar gen tina 33,498 Braz il 149,110 Ch i le 83,453 Colo mbia 18,176 Me xic o 93,638 Pe ru 9,997 Ven ezu ela 4,936 Source: IFC (International Finance Corporation, Second Quarter 1995) REAL GDP ANNUAL RATE OF GROWTH (ANNUAL % CHANGE) 1994 Ar gen tina 7.1 % B ra zil 5.7 % Chi le 4.2 % Me xic o 3.5 % Ven ezuel a 3.3 % Source: World Economic Outlook, May 1995 (International Monetary Fund) For national stock market index performance, please see the section on Performance beginning on page . PORTFOLIO TRANSACTIONS All orders for the purchase or sale of portfolio securities are placed on behalf of each fund by FMR pursuant to authority contained in the management contract. If FMR grants investment management authority to the sub-advisers (see the section entitled "Management Contract s "), the sub-advisers are authorized to place orders for the purchase and sale of portfolio securities, and will do so in accordance with the policies described below. FMR is also responsible for the placement of transaction orders for other investment companies and accounts for which it or its affiliates act as investment adviser. In selecting broker-dealers, subject to applicable limitations of the federal securities laws, FMR considers various relevant factors, including, but not limited to: the size and type of the transaction; the nature and character of the markets for the security to be purchased or sold; the execution efficiency, settlement capability, and financial condition of the broker-dealer firm; the broker-dealer's execution services rendered on a continuing basis; the reasonableness of any commissions; and arrangements for payment of fund expenses. Generally, commissions for investments traded on foreign exchanges will be higher than for investments traded on U.S. exchanges and may not be subject to negotiation. The funds may execute portfolio transactions with broker-dealers who provide research and execution services to the funds or other accounts over which FMR or its affiliates exercise investment discretion. Such services may include advice concerning the value of securities; the advisability of investing in, purchasing, or selling securities; and the availability of securities or the purchasers or sellers of securities. In addition, such broker-dealers may furnish analyses and reports concerning issuers, industries, securities, economic factors and trends, portfolio strategy, and performance of accounts; effect securities transactions, and perform functions incidental thereto (such as clearance and settlement). The selection of such broker-dealers generally is made by FMR (to the extent possible consistent with execution considerations) in accordance with a ranking of broker-dealers determined periodically by FMR's investment staff based upon the quality of research and execution services provided. The receipt of research from broker-dealers that execute transactions on behalf of the funds may be useful to FMR in rendering investment management services to the funds or its other clients, and conversely, such research provided by broker-dealers who have executed transaction orders on behalf of other FMR clients may be useful to FMR in carrying out its obligations to the funds. The receipt of such research has not reduced FMR's normal independent research activities; however, it enables FMR to avoid the additional expenses that could be incurred if FMR tried to develop comparable information through its own efforts. Subject to applicable limitations of the federal securities laws, broker-dealers may receive commissions for agency transactions that are in excess of the amount of commissions charged by other broker-dealers in recognition of their research and execution services. In order to cause each fund to pay such higher commissions, FMR must determine in good faith that such commissions are reasonable in relation to the value of the brokerage and research services provided by such executing broker-dealers, viewed in terms of a particular transaction or FMR's overall responsibilities to the funds and its other clients. In reaching this determination, FMR will not attempt to place a specific dollar value on the brokerage and research services provided, or to determine what portion of the compensation should be related to those services. FMR is authorized to use research services provided by and to place portfolio transactions with brokerage firms that have provided assistance in the distribution of shares of the funds or shares of other Fidelity funds to the extent permitted by law. FMR may use research services provided by and place agency transactions with Fidelity Brokerage Services, Inc. (FBSI) and Fidelity Brokerage Services (FBS), subsidiaries of FMR Corp., if the commissions are fair, reasonable, and comparable to commissions charged by non-affiliated, qualified brokerage firms for similar services. From September 1992 through December 1994, FBS operated under the name Fidelity Brokerage Services Limited, Inc. (FBSL). As of January 1995, FBSL was converted to an unlimited liability company and assumed the name FBS. Prior to September 4, 1992, FBSL operated under the name Fidelity Portfolio Services, Ltd. (FPSL) as a wholly owned subsidiary of Fidelity International Limited (FIL). Edward C. Johnson 3d is Chairman of FIL. Mr. Johnson 3d, Johnson family members, and various trusts for the benefit of the Johnson family own, directly or indirectly, more than 25% of the voting common stock of FIL. FMR may allocate brokerage transactions to broker-dealers who have entered into arrangements with FMR under which the broker-dealer allocates a portion of the commissions paid by each fund toward payment of the fund's expenses, such as transfer agent fees or custodian fees. The transaction quality must, however, be comparable to those of other qualified broker-dealers. Section 11(a) of the Securities Exchange Act of 1934 prohibits members of national securities exchanges from executing exchange transactions for accounts which they or their affiliates manage, unless certain requirements are satisfied. Pursuant to such requirements, the Board of Trustees has authorized FBSI to execute portfolio transactions on national securities exchanges in accordance with approved procedures and applicable SEC rules. Each fund's Trustees periodically review FMR's performance of its responsibilities in connection with the placement of portfolio transactions on behalf of the funds and review the commissions paid by each fund over representative periods of time to determine if they are reasonable in relation to the benefits to the fund. Each fund's turnover rates for the fiscal years ended October 31, 1995 and 1994 are presented in the table below. The estimated portfolio turnover rate for France Fund , Germany Fund, Hong Kong and China Fund , Japan Small Companies Fund , Nordic Fund , and United Kingdom Fund is not expected to exceed 200%. Because a high turnover rate increases transaction costs and may increase taxable gains, FMR carefully weighs the anticipated benefits of short-term investing against these consequences. An increased turnover rate is due to a greater volume of shareholder purchase orders, short-term interest rate volatility and other special market conditions. TURNOVER RATES 1995 1994 Canada Fund 75 % 59% Emerging Markets Fund 78% 107% Europe Fund 38% 49 % Europe Capital Appreciation Fund Fund 176% 317 % * Japan Fund 86% 153 % Latin America Fund 57% 77% Pacific Basin Fund 65% 88 % Southeast Asia Fund 94% 157 % * Annualized BROKERAGE COMMISSIONS. The table below lists the total brokerage commissions; and the dollar amount of commissions paid to FBS, FBSI and FBSL for the fiscal periods ended October 31, 1995, 1994, and 1993. Fiscal Period Ended October 31 Total To FBSI To FBS /FBSL
CANADA FUND 1995 $ 941,962 $ 120,137 $ 0 1994 $ 950,009 $ 76,201 $ 0 1993 $ 559,269 $ 6,234 $ 0 EMERGING MARKETS FUND 1995 $ 11,637,638 $ 86,207 $ 0 1994 $ 20,130,994 $ 52,584 $ 0 1993 $ 4,396,375 $ 12,982 $ 0 EUROPE FUND 1995 $ 1,033,151 $ 36 $ 3,490 1994 $ 856,517 $ 182 $ 0 1993 $ 1,377,988 $ 0 $ 0 EUROPE CAPITAL APPRECIATION FUND 1995 $ 2,336,212 $ 3,628 $ 70,372 19941 $ 3,052,874 $ 7,959 $ 0 JAPAN FUND 1995 $ 2,422,928 $ 0 $ 0 1994 $ 4,816,464 $ 0 $ 0 1993 $ 1,680,833 $ 0 $ 0 LATIN AMERICA FUND 1995 $ 2,102,089 $ 53,346 $ 0 1994 $ 1,918,285 $ 57,533 $ 0 19932 $ 902,099 $ 15,080 $ 0 PACIFIC BASIN FUND 1995 $ 2,937,153 $ 0 $ 0 1994 $ 3,629,075 $ 0 $ 0 1993 $ 3,067,285 $ 0 $ 0 SOUTHEAST ASIA FUND 1995 $ 6,876,440 $ 0 $ 0 1994 $ 13,659,606 $ 0 $ 0 19932 $ 2,709,357 $ 0 $ 0
_____ 1 From December 21, 1993 (commencement of operations). 2 From April 19, 1993 (commencement of operations). The table below lists for fiscal 1995, the percentage of aggregate brokerage commissions paid to FBSI, FBS and FBSL and the percentage of the aggregate dollar amount of transactions for which each fund paid brokerage commissions to FBSI, FBS, and FBSL. The difference in the percentage of the brokerage commissions paid to and the percentage of the dollar amount of transactions effected through FBSI and FBSL is a result of the low commission rates charged by FBSI. The table also includes the amount of brokerage commissions paid to brokerage firms that provided research services; and the approximate amount of transactions effected through brokerage firms that provided research services.
% of % of Commissions Transactions with % of % of Transactions Transactions Paid To Firms Brokerage Firms Fiscal Commissions Commissions Effected Effected Providing Providing Period Ended Paid Paid To through through Research Research Services October 31, 1995 to FBSI FBS/FBSL FBSI FBS/FBSL Services CANADA FUND 12.76% 0% 22.38% 0% $ 902,171 $ 402,801,995 EMERGING MARKETS FUND .74% 0% 3.70% 0% $ 10,608,451 $ 2,011,767,472 EUROPE FUND 0% .34% .06% .68% $ 983,978 $ 328,129,069 EUROPE CAPITAL APPRECIATION FUND .16% 3.01% .59% 3.64% $ 2,229,603 $ 873,046,912 JAPAN FUND 0% 0% 0% 0% $ 2,361,039 $ 597,261,674 LATIN AMERICA FUND 2.54% 0% 8.10% 0% $ 1,660,229 $ 486,620,306 PACIFIC BASIN FUND 0% 0% 0% 0% $ 2,611,090 $ 522,401,734 SOUTHEAST ASIA FUND 0% 0% 0% 0% $ 6,785,349 $ 1,268,560,255
_____ From time to time the Trustees will review whether the recapture for the benefit of the funds of some portion of the brokerage commissions or similar fees paid by the funds on portfolio transactions is legally permissible and advisable. Each fund seeks to recapture soliciting broker-dealer fees on the tender of portfolio securities, but at present no other recapture arrangements are in effect. The Trustees intend to continue to review whether recapture opportunities are available and are legally permissible and, if so, to determine in the exercise of their business judgment whether it would be advisable for each fund to seek such recapture. Although the Trustees and officers of each fund are substantially the same as those of other funds managed by FMR, investment decisions for each fund are made independently from those of other funds managed by FMR or accounts managed by FMR affiliates. It sometimes happens that the same security is held in the portfolio of more than one of these funds or accounts. Simultaneous transactions are inevitable when several funds and accounts are managed by the same investment adviser, particularly when the same security is suitable for the investment objective of more than one fund or account. When two or more funds are simultaneously engaged in the purchase or sale of the same security, the prices and amounts are allocated in accordance with procedures believed to be appropriate and equitable for each fund. In some cases this system could have a detrimental effect on the price or value of the security as far as each fund is concerned. In other cases, however, the ability of the funds to participate in volume transactions will produce better executions and prices for the funds. It is the current opinion of the Trustees that the desirability of retaining FMR as investment adviser to each fund outweighs any disadvantages that may be said to exist from exposure to simultaneous transactions. VALUATION OF PORTFOLIO SECURITIES Portfolio securities are valued by various methods depending on the primary market or exchange on which they trade. Most equity securities for which the primary market is the U.S. are valued at last sale price or, if no sale has occurred, at the closing bid price. Most equity securities for which the primary market is outside the U.S. are valued using the official closing price or the last sale price in the principal market where they are traded. If the last sale price (on the local exchange) is unavailable, the last evaluated quote or last bid price is normally used. Short-term securities are valued either at amortized cost or at original cost plus accrued interest, both of which approximate current value. Convertible securities and fixed-income securities are valued primarily by a pricing service that uses a vendor security valuation matrix which incorporates both dealer-supplied valuations and electronic data processing techniques. This two-fold approach is believed to more accurately reflect fair value because it takes into account appropriate factors such as institutional trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics, and other market data, without exclusive reliance upon quoted, exchange, or over-the counter prices. Use of pricing services has been approved by the Board of Trustees. Securities and other assets for which there is no readily available market are valued in good faith by a committee appointed by the Board of Trustees. The procedures set forth above need not be used to determine the value of the securities owned by the fund if, in the opinion of a committee appointed by the Board of Trustees, some other method (e.g., closing over-the-counter bid prices in the case of debt instruments traded on an exchange) would more accurately reflect the fair market value of such securities. Generally, the valuation of foreign and domestic equity securities, as well as corporate bonds, U.S. government securities, money market instruments, and repurchase agreements, is substantially completed each day at the close of the NYSE. The values of any such securities held by a fund are determined as of such time for the purpose of computing the fund's net asset value. Foreign security prices are furnished by independent brokers or quotation services which express the value of securities in their local currency. FSC gathers all exchange rates daily at the close of the NYSE using the last quoted price on the local currency and then translates the value of foreign securities from their local currency into U.S. dollars. Any changes in the value of forward contracts due to exchange rate fluctuations and days to maturity are included in the calculation of net asset value. If an extraordinary event that is expected to materially affect the value of a portfolio security occurs after the close of an exchange on which that security is traded, then the security will be valued as determined in good faith by a committee appointed by the Board of Trustees. PERFORMANCE The funds may quote performance in various ways. All performance information supplied by the funds in advertising is historical and is not intended to indicate future returns. Each fund's share price, yield, and total return fluctuate in response to market conditions and other factors, and the value of fund shares when redeemed may be more or less than their original cost. TOTAL RETURN CALCULATIONS. Total returns quoted in advertising reflect all aspects of a fund's return, including the effect of reinvesting dividends and capital gain distributions, and any change in the fund's net asset value (NAV) over a stated period. Average annual total returns are calculated by determining the growth or decline in value of a hypothetical historical investment in a fund over a stated period, and then calculating the annually compounded percentage rate that would have produced the same result if the rate of growth or decline in value had been constant over the period. For example, a cumulative total return of 100% over ten years would produce an average annual total return of 7.18%, which is the steady annual rate of return that would equal 100% growth on a compounded basis in ten years. Average annual total returns covering periods of less than one year are calculated by determining a fund's total return for the period, extending that return for a full year (assuming that return remains constant over the year), and quoting the result as an annual return. While average annual total returns are a convenient means of comparing investment alternatives, investors should realize that a fund's performance is not constant over time, but changes from year to year, and that average annual total returns represent averaged figures as opposed to the actual year-to-year performance of the fund. In addition to average annual total returns, a fund may quote unaveraged or cumulative total returns reflecting the simple change in value of an investment over a stated period. Average annual and cumulative total returns may be quoted as a percentage or as a dollar amount, and may be calculated for a single investment, a series of investments, or a series of redemptions, over any time period. Total returns may be broken down into their components of income and capital (including capital gains and changes in share price) in order to illustrate the relationship of these factors and their contributions to total return. Total returns may be quoted on a before-tax or after-tax basis and may be quoted with or without taking each fund's 3% maximum sales charge into account and may or may not include the effect of Canada Fund's, Emerging Markets Fund's, Europe Fund's , Europe Capital Appreciation Fund's , Pacific Basin Fund's, Japan Fund's 1.00% redemption fee or France Fund's , Germany Fund's, Hong Kong and China Fund's , Japan Small Companies Fund's , Latin America Fund's, Nordic Fund's , Southeast Asia Fund's, and United Kingdom Fund 's 1.50% redemption fee on shares held less than 90 days. (As of February 1, 1996, Japan Fund 's and Canada Fund 's redemption fee will increase to 1.5 0 %.) Excluding a fund's sales charge or redemption fee from a total return calculation produces a higher total return figure. Total returns, yields, and other performance information may be quoted numerically or in a table, graph, or similar illustration. NET ASSET VALUE. Charts and graphs using a fund's net asset values, adjusted net asset values, and benchmark indices may be used to exhibit performance. An adjusted NAV includes any distributions paid by a fund and reflects all elements of its return. Unless otherwise indicated, a fund's adjusted NAVs are not adjusted for sales charges, if any. MOVING AVERAGES. A fund may illustrate performance using moving averages. A long-term moving average is the average of each week's adjusted closing NAV for a specified period. A short-term moving average is the average of each day's adjusted closing NAV for a specified period. Moving Average Activity Indicators combine adjusted closing NAVs from the last business day of each week with moving averages for a specified period to produce indicators showing when an NAV has crossed, stayed above, or stayed below its moving average. On October 27, 1995, the 13-week and 39-week long-term moving averages for the funds are outlined in the chart below. 13 Week Long-Term 39 Week Long-Term Fund Name Moving Average Moving Average Canada Fund 18.15 17.28 Emerging Markets Fund 15.99 15.25 Europe Fund 23.25 21.88 Europe Capital Appreciation Fund 12.33 11.83 Japan Fund 12.27 12.12 Latin America Fund 10.69 10.05 Pacific Basin Fund 15.47 15.18 Southeast Asia Fund 14.02 13.51 HISTORICAL FUND RESULTS. The following table shows the funds' total returns for the periods ended October 31, 199 5 . Total return figures include the effect of the funds' sales charges. Total returns do not include the effect of paying a fund's $25 exchange fee, which was in effect from December 1, 1987 through October 23, 1989, or other charges for special transactions or services, such as Canada Fund's, Europe Fund's, Europe Capital Appreciation Fund's, Japan Fund's, and Pacific Basin Fund's 1.00% redemption fee or Emerging Market Fund 's, Latin America Fund 's, and Southeast Asia Fund 's redemption fee of 1.5% for shares held less then 90 days. Total returns may be quoted on a before-tax or after-tax basis. Average Annual Total Returns* * Cumulative Total Returns* *
One Five Life of One Five Life of Year Years Fund Year Years Fund Canada Fund (11/17/87) * ( 0.85)% 7.42 % 9.59 % (0.85)% 43.02 % 10 7.40 % Emerging Markets Fund (11/1/90)* (23.53)% n/a 9.11% (23.53)% n/a 54.69% Europe Fund (10/1/86) * 9.37 % 9.03 % 1 1.07 % 9.37% 54.11 % 159.64 % Europe Capital Appreciation Fund (12/21/93) * 3.24% n/a 8.88% 3.24% n/a 1 7.18 % Japan Fund (9/15/92) * (15.57) % n/a 7.25% (15.57)% n/a 24.50 % Latin America Fund (4/19/93)* (41.66)% n/a (1.92)% (41.66)% n/a (4.79)% Pacific Basin Fund (10/1/ 8 6 )* (18.39) % 5. 76 % 6.74 % (18.39)% 3 2.32 % 80.88 % Southeast Asia Fund (4/19/93) * (7.85) % n/a 12.65 % (7.85)% n/a 35.27 %
* Commencement of Operations * * Load Adjusted The following tables show the income and capital elements of each fund's total return from the date it commenced operations through October 31, 1995. The funds may compare their total returns to the record of the following Morgan Stanley Capital International indices: the World Index; EAFE Index; the Europe Index; the Pacific Index; the Combined Far East ex-Japan Free Index; and the Latin America Free Index. The EAFE Index combines the Europe and Pacific indices. The addition of Canada, the U.S., and South African Gold Mines to the EAFE index compiles the World Index which includes over 1400 companies. The Europe Index and Pacific Index are subsets of the Morgan Stanley Capital International World Index, which is also published by Morgan Stanley Capital International, S.A. The Europe and Pacific Indices are weighted by the market value of each country's stock exchange(s). The companies included in the indices change only in the event of mergers, takeovers, failures and the like, and minor adjustments may be made when Morgan Stanley Capital International, S.A. reviews the companies covered as to suitability every three or four years.
Fund Comparative Index Description of Index Canada Fund Toronto Stock Exchange 300 An unmanaged index of over 300 companies Composite Index (TSE 300 Index). in Canada published by the Toronto Stock Exchange. Emerging Markets Fund Morgan Stanley Capital International An unmanaged index over 560 foreign E merging Markets Free Index. common stocks . Europe Fund , Europe Morgan Stanley Capital International An unmanaged index of more than 6 00 Capital Appreciation Europe Index (Europe Index) . companies throughout Europe . Fund Japan Fund Tokyo Stock Exchange Price Index Includes over 1,200 companies representing (TOPIX) . over 90% of the total market capitalization in Japan . Latin America Fund Morgan Stanley Latin America Free Includes performance of over 130 companies Index. in over 7 countries. Pacific Basin Fund Morgan Stanley Capital International An unmanaged index of more than 400 Pacific Index (Pacific Index). companies from Australia, Hong Kong, Japan, Singapore, and Malaysia. Southeast Asia Fund Morgan Stanley Capital International Includes performance of over 380 companies Combined Far East Ex-Japan Index . in over 8 countries .
Each table compares the funds' returns to the record of the Standard & Poor's Composite Index of 500 Stocks (S&P 500), the Dow Jones Industrial Average (DJIA), a foreign stock market index as described above, and the cost of living (measured by the Consumer Price Index, or CPI) over the same period. The CPI information is as of the month end closest to the initial investment date for each fund. The S&P 500 and DJIA comparisons are provided to show how each fund's total return compared to the record of a broad range of U.S. common stocks and a narrower set of stocks of major U.S. industrial companies, respectively, over the same period. The funds have the ability to invest in securities not included in the indices, and their investment portfolios may or may not be similar in composition to the indices. The EAFE Index, Europe Index, Latin America Index, Pacific Index, Combined Far East Free Ex-Japan Index, TSE 300 Index, TOPIX Index, S&P 500, and DJIA are based on the prices of unmanaged groups of stocks and, unlike each fund's returns, their returns do not include the effect of paying brokerage commissions and other costs of investing. CANADA FUND: During the period from November 17, 1987 (commencement of operations) to October 31, 1995, a hypothetical $10,000 investment in Fidelity Canada Fund would have grown to $ 20,740 after deducting the fund's 3% sales charge and assuming all distributions were reinvested. This was a period of fluctuating stock prices and the figures below should not be considered representative of the dividend income or capital gain or loss that could be realized from an investment in the fund today. FIDELITY CANADA FUND INDICES
Value of Value of Value of Initial Reinvested Reinvested Year Ended $10,000 Dividend Capital Gain Total TSE 300 October 31 Investment Distributions Distributions Value Index S&P 500 DJIA CPI ** 1995 $ 17,024 $ 301 $ 3,415 $ 20,740 $ 19,040 $ 30,309 $ 31,485 $ 13,319 1994 16,665 282 3,343 20,290 17,783 23,971 25,235 12,955 1993 17,285 292 3,421 20,998 17,655 23,079 23,129 12,626 1992 13,803 21 1 2,731 16,745 14,331 20,078 19,693 12,288 1991 15,792 24 0 1,991 18,023 16,117 18,257 18,192 11,906 1990 13,163 13 7 766 14,066 13,074 13,674 13,986 11,568 1989 14,987 146 183 15,316 15,950 14,782 14,573 10,884 1988* 12,358 0 0 12,358 12,753 11,694 11,408 10,416
* From November 17, 1987 (commencement of operations). ** From month-end closest to initial investment date. Explanatory Notes: With an initial investment of $10,000 made on November 17, 1987, assuming the 3% load had been in effect, the net amount invested in fund shares was $ 9,700 . The cost of the initial investment ($10,000), together with the aggregate cost of reinvested dividend and capital gain distributions for the period covered (their cash value at the time they were reinvested), amounted to $ 12,990 . If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $ 213 for dividends and $ 2,561 for capital gains distributions. Tax consequences of different investments (with the exception of foreign tax withholdings) have not been factored into the above figures. The figures shown do not reflect the fund's 1.0% redemption fee or shares held less than 90 days. EMERGING MARKETS FUND: During the period from November 1, 1990 (commencement of operations) to October 31, 1995, a hypothetical $10,000 investment in the Fidelity Emerging Markets Fund would have grown to $15,469 after deducting the fund's 3% sales charge and assuming all dividends were reinvested. This was a period of fluctuating stock prices and the figures below should not be considered representative of the dividend income or capital gain or loss that could be realized from an investment in the fund today. FIDELITY EMERGING MARKETS FUND INDICES
Value of Value of Value of Emerging Initial Reinvested Reinvested Market Year Ended $10,000 Dividend Capital Gain Total Free October 31 Investment Distributions Distributions Value Index S&P 500 DJIA CPI** 1995 $ 14,686 $ 367 $ 416 $ 15,469 $ 26,190 $ 22,165 $ 22,512 $ 11,513 1994 18,673 422 529 19,624 32,505 17,530 18,044 11,199 1993 15,695 307 444 16,446 25,128 16,878 16,538 10,914 1992 10,719 127 149 10,995 17,333 14,683 14,081 10,622 1991* 10,088 40 0 10,128 14,439 13,351 13,008 10,292
* From November 1, 1990 (commencement of operations). ** From month-end closest to initial investment date. Explanatory Notes: With an initial investment of $10,000 made on November 1, 1990 assuming the 3% load had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000), together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested), amounted to $10,574. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $281 for dividends and $281 for capital gain distributions. Tax consequences of different investments (with the exception of foreign tax withholdings) have not been factored into the above figures. The figures shown above do not reflect the fund's 1.5% redemption fee applicable to shares held less than 90 days. EUROPE FUND: During the period from October 1, 1986 (commencement of operations) to October 31, 1995, a hypothetical $10,000 investment in Fidelity Europe Fund would have grown to $ 25,964 after deducting the fund's 3% sales charge and assuming that all distributions were reinvested. This was a period of fluctuating stock prices and the figures below should not be considered representative of the dividend income or capital gain or loss that could be realized from an investment in the fund today. FIDELITY EUROPE FUND INDICES
Value of Value of Value of Initial Reinvested Reinvested Year Ended $10,000 Dividend Capital Gain Total Europe S&P October 31 Investment Distributions Distributions Value Index 500 DJIA CPI ** 1995 $ 22,805 $ 3,016 $ 143 $ 25,964 $26,894 $33,489 $ 35,950 $ 13,947 1994 20,545 2,482 0 23,027 23,756 26,486 28,814 13,566 1993 17,877 2,075 0 19,952 21,355 25,500 26,409 13,221 1992 14,666 1,392 0 16,058 16,994 22,184 22,486 12,868 1991 15,452 915 0 16,367 17,319 20,172 20,772 12,468 1990 15,792 551 0 16,343 16,194 15,109 15,969 12,114 1989 14,589 336 0 14,925 14,339 16,332 16,640 11,397 1988 12,571 11 0 12,582 12,819 12,921 13,026 10,907 1987 11,727 11 0 11,738 11,136 11,255 11,659 10,463 1986* 9,690 0 0 9,690 10,061 10,577 10,655 10,009
* From October 1, 1986 (commencement of operations). ** From month-end closest to initial investment date. Explanatory Notes: With an initial investment of $10,000 made on October 1, 1986, assuming the 3% load had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000), together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested), amounted to $ 12,107 . If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $ 1,882 for dividends and $107 for capital gains distributions . Tax consequences of different investments (with the exception of foreign tax withholding s ) have not been factored into the above figures. The figures shown do not reflect the fund's 1.0% redemption fee or shares held less than 90 days. EUROPE CAPITAL APPRECIATION FUND: During the period from December 21, 1993 (commencement of operations) to October 31, 1995, a hypothetical $10,000 investment in Fidelity Europe Capital Appreciation Fund would have grown to $ 11,718 after deducting the fund's 3% sales charge and assuming that all distributions were reinvested. This was a period of fluctuating stock prices and the figures below should not be considered representative of the dividend income or capital gain or loss that could be realized from an investment in the fund today. FIDELITY EUROPE CAPITAL APPRECIATION FUND INDICES
Value of Value of Value of Initial Reinvested Reinvested Year Ended $10,000 Dividend Capital Gain Total Europe October 31 Investment Distributions Distributions Value Index S&P 500 DJIA CPI ** 1995 $ 11,718 $ 0 $ 0 $ 11,718 $ 12,131 $ 13,127 $ 13,294 $ 10,542 1994* 11,010 0 0 11,010 10,716 10,382 10,655 10,254
* From December 21, 1993 (commencement of operations). ** From month-end closest to initial investment date. Explanatory Notes: With an initial investment of $10,000 made on December 21, 1993 , assuming the 3% load had been in effect, the net amount invested in fund shares was $ 9,700 . The cost of the initial investment ($10,000), together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested), amounted to $ 10,000 . The fund did not distribute any distributions or capital gains during the period. Tax consequences of different investments (with the exception of foreign tax withholding s ) have not been factored into the above figures. The figures shown do not reflect the fund's 1.0% redemption fee applicable to shares held less than 90 days. JAPAN FUND: During the period from September 15, 1992 (commencement of operations) to October 31, 1995, a hypothetical $10,000 investment in Fidelity Japan Fund would have grown to $12,835 after deducting the fund's 3% sales charge and assuming all distributions were reinvested. This was a period of fluctuating stock prices and the figures below should not be considered representative of the dividend income or capital gain or loss that could be realized from an investment in the fund today. FIDELITY JAPAN FUND INDICES
Value of Value of Value of Initial Reinvested Reinvested Year Ended $10,000 Dividend Capital Gain Total TOPIX October 31 Investment Distributions Distributions Value Index S&P 500 DJIA CPI** 1995 $ 11,718 $ 0 $ 732 $ 12,450 $ 12,716 $ 14,904 $ 15,336 $ 10,878 1994 13,842 0 461 14,303 14,931 11,787 12,292 10,580 1993 12,950 0 0 12,950 13,631 11,349 11,266 10,311 1992* 9,545 0 0 9,545 9,332 9,873 9,593 10,035
* From September 15, 1992 (commencement of operations). ** From month-end closest to initial investment date. Explanatory Notes: With an initial investment of $10,000 made on September 15, 1992, assuming the 3% load had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000), together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $10,739. If distributions had not been reinvested the amount of distributions earned by the fund over time would have been smaller and cash payments for the period would have amounted to $728 for capital gain distributions. The fund did not pay any dividends. Tax consequences of different investments (with the exception of foreign tax withholdings) have not been factored into the above figures. The figures shown above do not reflect the fund's 1.00% redemption fee applicable to shares held less than 90 days. LATIN AMERICA FUND: During the period from April 19, 1993 (commencement of operations) to October 31, 1995, a hypothetical $10,000 investment in Fidelity Latin America Fund would have grown to $ 9,521 after deducting the fund's 3% sales charge and assuming all distributions were reinvested. This was a period of fluctuating stock prices and the figures below should not be considered representative of the dividend income or capital gain or loss that could be realized from an investment in the fund today. FIDELITY LATIN AMERICA FUND INDICES
Value of Value of Value of Initial Reinvested Reinvested Latin Year Ended $10,000 Dividend Capital Gain Total America October 31 Investment Distributions Distributions Value Free Index S&P 500 DJIA CPI ** 1995 $ 9,458 $ 31 $ 32 $ 9,521 $ 12,365 $ 13,891 $ 14,622 $ 10,674 1994 15,724 53 53 15,830 18,006 10,986 11,719 10,382 1993* 12,882 0 0 12,882 12,314 10,577 10,741 10,118
* From April 19, 1993 (commencement of operations) through October 31, 1993. ** From month-end closest to initial investment date. Explanatory Notes: With an initial investment of $10,000 made on April 19, 1993, assuming the 3% load had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000), together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested), amounted to $ 10,097 . If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller and cash payments for the period would have amounted to $ 49 for dividends and $ 49 for capital gain distributions. Tax consequences of different investments (with the exception of foreign tax withholdings) have not been factored into the above figures. The figures shown above do not reflect the fund's 1.5% redemption fee applicable to shares held less than 90 days. PACIFIC BASIN FUND: During the period from October 1, 1986 (commencement of operations) to October 31, 1995, a hypothetical $10,000 investment in Fidelity Pacific Basin Fund would have grown to $18,088 after deducting the fund's 3% sales charge and assuming all distributions were reinvested. This was a period of widely fluctuating stock prices and should not be considered representative of the dividend income or capital gain or loss that could be realized from an investment in the fund today. FIDELITY PACIFIC BASIN FUND INDICES
Value of Value of Value of Initial Reinvested Reinvested Year Ended $10,000 Dividend Capital Gain Total Pacific October 31 Investment Distributions Distributions Value Index S&P 500 DJIA CPI** 1995 $ 14,434 $ 756 $ 2,898 $ 18,088 $ 16,609 $ 33,489 $ 35,950 $ 13,947 1994 19,361 988 1,151 21,500 18,707 26,486 28,814 13,566 1993 16,956 723 716 18,395 17,154 25,500 26,409 13,221 1992 11,640 377 491 12,508 11,532 22,184 22,486 12,868 1991 12,756 413 538 13,707 14,760 20,172 20,772 12,468 1990 12,503 229 528 13,260 13,796 15,109 15,969 12,114 1989 15,307 270 21 15,598 18,594 16,332 16,640 11,397 1988 13,570 155 0 13,725 17,470 12,921 13,026 10,907 1987 12,047 11 0 12,058 13,346 11,255 11,659 10,463 1986* 9,603 0 0 9,603 8,862 10,577 10,655 10,009
* From October 1, 1986 (commencement of operations). ** From month-end closest to initial investment date. Explanatory Notes: With an initial investment of $10,000 made on October 1, 1986, assuming the 3% load had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000), together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $13,784. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and the cash payments for the period would have amounted to $650 for dividend and $2,852 for capital gain distributions. Tax consequences of different investments (with the exception of foreign tax withholdings) have not been factored into the above figures. The figures shown do not reflect the fund's 1.0% redemption fee or shares held less than 90 days. SOUTHEAST ASIA FUND: During the period from April 19, 1993 (commencement of operations) to October 31, 1995, a hypothetical $10,000 investment in Fidelity Southeast Asia Fund would have grown to $ 13,527 after deducting the fund's 3% sales charge and assuming all distributions were reinvested. This was a period of fluctuating stock prices and the figures below should not be considered representative of the dividend income or capital gain or loss that could be realized from an investment in the fund today. FIDELITY SOUTHEAST ASIA FUND INDICES
Value of Value of Value of Combined Initial Reinvested Reinvested Far East Year Ended $10,000 Dividend Capital Gain Total Ex-Japan October 31 Investment Distributions Distributions Value Free Index S&P 500 DJIA CPI ** 1995 $ 13,464 $ 63 $ 0 $ 13,527 $ 15,202 $ 13,891 $ 14,622 $ 10,674 1994 14,172 67 0 14,239 16,441 10,986 11,719 10,382 1993* 12,843 0 0 12,843 14,239 10,577 10,741 10,118
* From April 19, 1993 (commencement of operations) through October 31, 1993. ** From month-end closest to initial investment date. Explanatory Notes: With an initial investment of $10,000 made on April 19, 1993, assuming the 3% load had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000), together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $10,068 . If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller and cash payments for the period would have amounted to $ 68 for dividends. The fund did not distribute any capital gains during the period. Tax consequences of different investments with the exception of foreign withholding tax have not been factored into the above figures. The figures shown above do not reflect the fund's 1.5% redemption fee applicable to shares held less than 90 days. MARKET CAPITALIZATION AND NATIONAL STOCK MARKET RETURN The following tables show the total market capitalization of certain countries according to the International Finance Corporation as of June 30, 1995 and the performance of national stock markets as measured in U.S. dollars by the Morgan Stanley Capital International stock market indices for the 1, 5 and ten year periods ending October 31, 1995 . Of course, these results are not indicative of future stock market performance or the funds' performance. Market conditions during the periods measured fluctuated widely. Brokerage commissions and other fees are not factored into the values of the indices. MARKET CAPITALIZATION. Companies outside the U.S. now make up nearly two-thirds of the world's stock market capitalization. According to Morgan Stanley Capital International, the size of the markets as measured in U.S. dollars grew from $2,011 billion in 1982 to $8,512 billion in 1995. TOTAL MARKET CAPITALIZATION
Australia $ 183.9 Japan $ 1,935.2 Austria 17 Netherlands 23.7 Belgium 56.3 Norway 186.7 Canada 191.7 Singapore/Malaysia 73.2 Denmark 49.6 Spain 91.5 France 319.9 Sweden 101.2 Germany 333.7 Switzerland 296.7 Hong Kong 137.5 United Kingdom 836.4 Italy 112.4 United States 3,541.4
The following table measures the total market capitalization of Latin American countries according to the International Finance Corporation Emerging Markets database. The value of the markets is measured in billions of U.S. dollars as of October 31, 1995. TOTAL MARKET CAPITALIZATION - LATIN AMERICA Argentina $ 20.9 Brazil 78.6 Chile 36.4 Colombia 5.4 Mexico 52.9 Venezuela 3.9 NATIONAL STOCK MARKET INDEX PERFORMANCE. Certain national stock markets have outperformed the U.S. stock market. The table below represents the performance of national stock market indices as measured in U.S. dollars by the Morgan Stanley Capital International stock market indices for the 1, 5, and ten year periods ending July 31, 1995. The table measures total return based on the period's change in price, dividends paid on stocks in the index, and the effect of reinvesting dividends net of any applicable foreign taxes. These are unmanaged indices composed of a sampling of selected companies representing an approximation of the market structure of the designated country. NATIONAL STOCK MARKET INDEX PERFORMANCE 1 year % 5 years % 10 years % Argentina -21.45% 24.15% N/A Australia 9.46% 9.95% 15.02% Austria 5.11% -6.02% 16.23% Belgium 19.84% 10.55% 25.24% Brazil -1.23% 25.93% N/A Canada 17.95% 4.44% 8.16% Chile 31.09% 38.64% N/A Columbia -26.76% N/A N/A Denmark 12.44% 3.83% 15.28% Finland 67.32% 16.67% N/A France 9.99% 6.55% 19.88% Germany 20.85% 5.54% 16.60% Greece 27.89% -12.28% N/A Hong Kong 0.02% 24.95% 23.78% India -22.13% N/A N/A Indonesia 5.86% -8.32% N/A Ireland 24.34% 6.15% N/A Israel 11.40% N/A N/A Italy -5.58% -2.29% 12.47% Japan -3.93% 2.37% 15.22% Jordan -1.30% 10.05% N/A Korea 9.50% 6.11% N/A Malaysia 8.73% 13.61% N/A Mexico -46.17% 12.55% N/A Netherlands 29.07% 16.68% 21.24% New Zealand 28.09% 12.50% N/A Norway 18.08% -0.00% 14.36% Pakistan -24.91% N/A N/A Peru 56.60% N/A N/A Philippines 1.81% 27.18% N/A Portugal 11.41% -4.78% N/A Singapore 12.07% 14.00% 17.41% Spain 13.03% 2.68% 19.87% Sri Lanka -26.38% N/A N/A Sweden 30.92% 6.70% 22.75% Switzerland 30.77% 16.64% 19.81% Taiwan -21.09% 0.78% N/A Thailand 0.02% 9.47% N/A Turkey 57.48% -11.41% N/A United Kingdom 19.43% 9.31% 16.35% USA 27.32% 13.32% 15.03% Venezuela -13.61% N/A N/A PERFORMANCE COMPARISONS. A fund's performance may be compared to the performance of other mutual funds in general, or to the performance of particular types of mutual funds. These comparisons may be expressed as mutual fund rankings prepared by Lipper Analytical Services, Inc. (Lipper), an independent service located in Summit, New Jersey that monitors the performance of mutual funds. Lipper generally ranks funds on the basis of total return, assuming reinvestment of distributions, but does not take sales charges or redemption fees into consideration, and is prepared without regard to tax consequences. In addition to the mutual fund rankings, a fund's performance may be compared to stock, bond, and money market mutual fund performance indices prepared by Lipper or other organizations. When comparing these indices, it is important to remember the risk and return characteristics of each type of investment. For example, while stock mutual funds may offer higher potential returns, they also carry the highest degree of share price volatility. Likewise, money market funds may offer greater stability of principal, but generally do not offer the higher potential returns available from stock mutual funds. From time to time, a fund's performance may also be compared to other mutual funds tracked by financial or business publications and periodicals. For example, the fund may quote Morningstar, Inc. in its advertising materials. Morningstar, Inc. is a mutual fund rating service that rates mutual funds on the basis of risk-adjusted performance. Rankings that compare the performance of Fidelity funds to one another in appropriate categories over specific periods of time may also be quoted in advertising. A fund may be compared in advertising to Certificates of Deposit (CDs) or other investments issued by banks or other depository institutions. Mutual funds differ from bank investments in several respects. For example, a fund may offer greater liquidity or higher potential returns than CDs, a fund does not guarantee your principal or your return, and fund shares are not FDIC insured. Fidelity may provide information designed to help individuals understand their investment goals and explore various financial strategies. Such information may include information about current economic, market, and political conditions; materials that describe general principles of investing, such as asset allocation, diversification, risk tolerance, and goal setting; questionnaires designed to help create a personal financial profile; worksheets used to project savings needs based on assumed rates of inflation and hypothetical rates of return; and action plans offering investment alternatives. Materials may also include discussions of Fidelity's asset allocation funds and other Fidelity funds, products, and services. Ibbotson Associates of Chicago, Illinois (Ibbotson) provides historical returns of the capital markets in the United States, including common stocks, small capitalization stocks, long-term corporate bonds, intermediate-term government bonds, long-term government bonds, Treasury bills, the U.S. rate of inflation (based on the CPI), and combinations of various capital markets. The performance of these capital markets is based on the returns of different indices. Fidelity funds may use the performance of these capital markets in order to demonstrate general risk-versus-reward investment scenarios. Performance comparisons may also include the value of a hypothetical investment in any of these capital markets. The risks associated with the security types in any capital market may or may not correspond directly to those of the funds. Ibbotson calculates total returns in the same method as the funds. The funds may also compare performance to that of other compilations or indices that may be developed and made available in the future. In advertising materials, Fidelity may reference or discuss its products and services, which may include other Fidelity funds; retirement investing; brokerage products and services; model portfolios or allocations; saving for college or other goals; charitable giving; and the Fidelity credit card. In addition, Fidelity may quote or reprint financial or business publications and periodicals as they relate to current economic and political conditions, fund management, portfolio composition, investment philosophy, investment techniques, the desirability of owning a particular mutual fund, and Fidelity services and products. Fidelity may also reprint, and use as advertising and sales literature, articles from Fidelity Focus, a quarterly magazine provided free of charge to Fidelity fund shareholders. A fund may present its fund number, Quotron(trademark) number, and CUSIP number, and discuss or quote its current portfolio manager. VOLATILITY. A fund may quote various measures of volatility and benchmark correlation in advertising. In addition, the fund may compare these measures to those of other funds. Measures of volatility seek to compare the fund's historical share price fluctuations or total returns to those of a benchmark. Measures of benchmark correlation indicate how valid a comparative benchmark may be. All measures of volatility and correlation are calculated using averages of historical data. MOMENTUM INDICATORS indicate a fund's price movements over specific periods of time. Each point on the momentum indicator represents the fund's percentage change in price movements over that period. A fund may advertise examples of the effects of periodic investment plans, including the principle of dollar cost averaging. In such a program, an investor invests a fixed dollar amount in a fund at periodic intervals, thereby purchasing fewer shares when prices are high and more shares when prices are low. While such a strategy does not assure a profit or guard against loss in a declining market, the investor's average cost per share can be lower than if fixed numbers of shares are purchased at the same intervals. In evaluating such a plan, investors should consider their ability to continue purchasing shares during periods of low price levels. A fund may be available for purchase through retirement plans or other programs offering deferral of, or exemption from, income taxes, which may produce superior after-tax returns over time. For example, a $1,000 investment earning a taxable return of 10% annually would have an after-tax value of $1,949 after ten years, assuming tax was deducted from the return each year at a 31% rate. An equivalent tax-deferred investment would have an after-tax value of $2,100 after ten years, assuming tax was deducted at a 31% rate from the tax-deferred earnings at the end of the ten-year period. As of October 31, 1995, FMR advised over $ 26.5 billion in tax-free fund assets, $ 80 billion in money market fund assets, $ 224 billion in equity fund assets, $ 51 billion in international fund assets, and $ 23 billion in Spartan fund assets. The funds may reference the growth and variety of money market mutual funds and the adviser's innovation and participation in the industry. The equity funds under management figure represents the largest amount of equity fund assets under management by a mutual fund investment adviser in the United States, making FMR America's leading equity (stock) fund manager. FMR, its subsidiaries, and affiliates maintain a worldwide information and communications network for the purpose of researching and managing investments abroad. ADDITIONAL PURCHASE AND REDEMPTION INFORMATION Pursuant to Rule 22d-1 under the Investment Company Act of 1940 (the 1940 Act), FDC exercises its right to waive each fund's front-end sales charge on shares acquired through reinvestment of dividends and capital gain distributions or in connection with the fund's merger with or acquisition of any investment company or trust. In addition, FDC has chosen to waive each fund's sales charge in certain instances because of efficiencies involved in those sales of shares. The sales charge will not apply: 1. to shares purchased in connection with an employee benefit plan (including the Fidelity-sponsored 403(b) and corporate IRA programs but otherwise as defined in the Employee Retirement Income Security Act) maintained by a U.S. employer and having more than 200 eligible employees, or a minimum of $3,000,000 in plan assets invested in Fidelity mutual funds, or as part of an employee benefit plan maintained by a U.S. employer that is a member of a parent-subsidiary group of corporations (within the meaning of Section 1563(a)(1) of the Internal Revenue Code, with "50%" substituted for "80%") any member of which maintains an employee benefit plan having more than 200 eligible employees, or a minimum of $3,000,000 in plan assets invested in Fidelity mutual funds, or as part of an employee benefit plan maintained by a non-U.S. employer having 200 or more eligible employees, or a minimum of $3,000,000 in assets invested in Fidelity mutual funds, the assets of which are held in a bona fide trust for the exclusive benefit of employees participating therein; 2. to shares purchased by an insurance company separate account used to fund annuity contracts purchased by employee benefit plans (including 403(b) programs, but otherwise as defined in the Employee Retirement Income Security Act), which, in the aggregate, have either more than 200 eligible employees or a minimum of $3,000,000 in assets invested in Fidelity funds; 3. to shares in a Fidelity IRA account purchased (including purchases by exchange) with the proceeds of a distribution from an employee benefit plan provided that: (i) at the time of the distribution, the employer, or an affiliate (as described in exemption 1 above) of such employer, maintained at least one employee benefit plan that qualified for exemption 1 and that had at least some portion of its assets invested in one or more mutual funds advised by FMR, or in one or more accounts or pools advised by Fidelity Management Trust Company; and (ii) the distribution is transferred from the plan to a Fidelity Rollover IRA account within 60 days from the date of the distribution; 4. to shares purchased by a charitable organization (as defined in Section 501(c)(3) of the Internal Revenue Code) investing $100,000 or more; 5. to shares purchased for a charitable remainder trust or life income pool established for the benefit of a charitable organization (as defined by Section 501(c)(3) of the Internal Revenue Code); 6. to shares purchased by an investor participating in the Fidelity Trust Portfolios program (these investors must make initial investments of $100,000 or more in the Trust Portfolios funds and must, during the initial six-month period, reach and maintain an aggregate balance of at least $500,000 in all accounts and subaccounts purchased through the Trust Portfolios program); 7. to shares purchased through Portfolio Advisory Services or Fidelity Charitable Advisory Services. 8. to shares purchased by a current or former Trustee or officer of a Fidelity fund or a current or retired officer, director, or regular employee of FMR Corp. or its direct or indirect subsidiaries (a Fidelity Trustee or employee), the spouse of a Fidelity Trustee or employee, a Fidelity Trustee or employee acting as custodian for a minor child, or a person acting as trustee of a trust for the sole benefit of the minor child of a Fidelity Trustee or employee; 9. to shares purchased by a bank trust officer, registered representative, or other employee of a qualified recipient. Qualified recipients are securities dealers or other entities, including banks and other financial institutions, who have sold the fund's shares under special arrangements in connection with FDC's sales activities; 10. to shares purchased by contributions and exchanges to the following prototype or prototype-like retirement plans sponsored by FMR Corp. or FMR and that are marketed and distributed directly to plan sponsors or participants without any intervention or assistance from any intermediary distribution channel: The Fidelity IRA, the Fidelity Rollover IRA, The Fidelity SEP-IRA and SARSEP, The Fidelity Retirement Plan, Fidelity Defined Benefit Plan, The Fidelity Group IRA, The Fidelity 403(b) Program, The Fidelity Investments 401(a) Prototype Plan for Tax-Exempt Employers, and The CORPORATEplan for Retirement (Profit Sharing and Money Purchase Plan); 11. to shares purchased as part of a pension or profit-sharing plan as defined in Section 401(a) of the Internal Revenue Code that maintains all of its mutual fund assets in Fidelity mutual funds, provided the plan executes a Fidelity non-prototype sales charge waiver request form confirming its qualification; 12. to shares purchased by a registered investment adviser (RIA) for his or her discretionary accounts, provided he or she executes a Fidelity RIA load waiver agreement which specifies certain aggregate minimum and operating provisions. This waiver is available only for shares purchased directly from Fidelity, without a broker, unless purchased through a brokerage firm which is a correspondent of National Financial Services Corporation (NFSC). The waiver is unavailable, however, if the RIA is part of an organization principally engaged in the brokerage business, unless the brokerage firm in the organization is an NFSC correspondent; or 13. to shares purchased by a trust institution or bank trust department for its non-discretionary, non-retirement fiduciary accounts, provided it executes a Fidelity Trust load waiver agreement which specifies certain aggregate minimum and operating provisions. This waiver is available only for shares purchased either directly from Fidelity or through a bank-affiliated broker, and is unavailable if the trust department or institution is part of an organization not principally engaged in banking or trust activities. Each fund's sales charge may be reduced to reflect sales charges previously paid, or that would have been paid absent a reduction for some purchases made directly with Fidelity as noted in the prospectus, in connection with investments in other Fidelity funds. This includes reductions for investments in prototype-like retirement plans sponsored by FMR or FMR Corp., which are listed above. On December 30, 1990, Europe, Pacific Basin, and Canada changed their sales charge policy from a 2% sales charge upon purchase and 1% deferred sales charge upon redemption, to a 3% sales charge upon purchase. If your shares were purchased prior to that date and you do not qualify for a front-end sales charge reduction under applicable conditions noted above, then, when you redeem those shares, a deferred sales charge amounting to 1% of the net asset value of shares redeemed will be withheld from your redemption proceeds and paid to FDC. Each fund is open for business and its net asset value per share (NAV) is calculated each day the New York Stock Exchange (NYSE) is open for trading. The NYSE has designated the following holiday closings for 1996: New Year's Day, Presidents' Day (observed), Good Friday, Memorial Day (observed), Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. Although FMR expects the same holiday schedule to be observed in the future, the NYSE may modify its holiday schedule at any time. In addition, the funds will not process wire purchases and redemptions on days when the Federal Reserve Wire System is closed. FSC normally determines each fund's NAV as of the close of the NYSE (normally 4:00 p.m. Eastern time). However, NAV may be calculated earlier if trading on the NYSE is restricted or as permitted by the Securities and Exchange Commission (SEC). To the extent that portfolio securities are traded in other markets on days when the NYSE is closed, a fund's NAV may be affected on days when investors do not have access to the fund to purchase or redeem shares. In addition, trading in some of a fund's portfolio securities may not occur on days when the fund is open for business. If the Trustees determine that existing conditions make cash payments undesirable, redemption payments may be made in whole or in part in securities or other property, valued for this purpose as they are valued in computing a fund's NAV. Shareholders receiving securities or other property on redemption may realize a gain or loss for tax purposes, and will incur any costs of sale, as well as the associated inconveniences. Pursuant to Rule 11a-3 under the Investment Company Act of 1940 (the 1940 Act), each fund is required to give shareholders at least 60 days' notice prior to terminating or modifying its exchange privilege. Under the Rule, the 60-day notification requirement may be waived if (i) the only effect of a modification would be to reduce or eliminate an administrative fee, redemption fee, or deferred sales charge ordinarily payable at the time of an exchange, or (ii) the fund suspends the redemption of the shares to be exchanged as permitted under the 1940 Act or the rules and regulations thereunder, or the fund to be acquired suspends the sale of its shares because it is unable to invest amounts effectively in accordance with its investment objective and policies. In the Prospectus, each fund has notified shareholders that it reserves the right at any time, without prior notice, to refuse exchange purchases by any person or group if, in FMR's judgment, the fund would be unable to invest effectively in accordance with its investment objective and policies, or would otherwise potentially be adversely affected. DISTRIBUTIONS AND TAXES DISTRIBUTIONS. If you request to have distributions mailed to you and the U.S. Postal Service cannot deliver your checks, or if your checks remain uncashed for six months, Fidelity may reinvest your distributions at the then-current NAV. All subsequent distributions will then be reinvested until you provide Fidelity with alternate instructions. DIVIDENDS. Because each fund invests significantly in foreign securities, corporate shareholders should not expect fund dividends to qualify for the dividends-received deduction. Short-term capital gains are distributed as dividend income, but do not qualify for the dividends-received deduction. Each fund will notify corporate shareholders annually of the percentage of fund dividends that qualify for the dividends-received deduction. Gains (losses) attributable to foreign currency fluctuations are generally taxable as ordinary income, and therefore will increase (decrease) dividend distributions. Each fund will send each shareholder a notice in January describing the tax status of dividend and capital gain distributions for the prior year. CAPITAL GAIN DISTRIBUTIONS. Long-term capital gains earned by each fund on the sale of securities and distributed to shareholders are federally taxable as long-term capital gains, regardless of the length of time shareholders have held their shares. If a shareholder receives a long-term capital gain distribution on shares of a fund, and such shares are held six months or less and are sold at a loss, the portion of the loss equal to the amount of the long-term capital gain distribution will be considered a long-term loss for tax purposes. Short-term capital gains distributed by each fund are taxable to shareholders as dividends, not as capital gains. As of October 31 , 1995, Europe Fund hereby designates $10,366,000 as a capital gain dividend for the purpose of the dividend-paid deduction. As of October 31, 1995, Canada F und had a capital loss carryforward aggregating approximately $ 10,603,000 . This loss carryforward, of which $ 5,787,000, and $ 4,816,000 will expire on October 31, 2002 , and 2003 , respectively, is available to offset future capital gains. As of October 31, 1995, Emerging Markets Fund had a capital loss carryforward aggregating approximately $11,421,000. This loss carryforward, all of which will expire on October 31, 2003, is available to offset future capital gains. As of October 31 , 1995, Europe Capital Appreciation Fund had a capital loss carryforward aggregating approximately $1,744,000. This loss carryforward, all of which will expire on October 31 , 2003, is available to offset future capital gains. As of October 31 , 1995, Japan Fund had a capital loss carryforward aggregating approximately $34,385,000. This loss carryforward, all of which will expire on October 31 , 2003, is available to offset future capital gains. As of October 31 , 1995, Latin America Fund had a capital loss carryforward aggregating approximately $147,415,000. This loss carryforward, all of which will expire on October 31 , 2003, is available to offset future capital gains. As of October 31 , 1995, Pacific Basin Fund had a capital loss carryforward aggregating approximately $10,407,000 This loss carryforward, all of which will expire on October 31 , 2003, is available to offset future capital gains. As of October 31 , 1995, Southeast Asia Fund had a capital loss carryforward aggregating approximately $28,533,000. This loss carryforward, all of which will expire on October 31 , 2003, is available to offset future capital gains. FOREIGN TAXES. Foreign governments may withhold taxes on dividends and interest paid with respect to foreign securities. Foreign governments may also impose taxes on other payments or gains with respect to foreign securities. If, at the close of its fiscal year, more than 50% of a fund's total assets are invested in securities of foreign issuers, the fund may elect to pass through foreign taxes paid and thereby allow shareholders to take a credit or deduction on their individual tax returns. TAX STATUS OF THE FUNDS. Each fund intends to qualify each year as a "regulated investment company" for tax purposes so that it will not be liable for federal tax on income and capital gains distributed to shareholders. In order to qualify as a regulated investment company and avoid being subject to federal income or excise taxes at the fund level, each fund intends to distribute substantially all of its net investment income and net realized capital gains within each calendar year as well as on a fiscal year basis. Each fund intends to comply with other tax rules applicable to regulated investment companies, including a requirement that capital gains from the sale of securities held less than three months constitute less than 30% of the fund's gross income for each fiscal year. Gains from some forward currency contracts, futures contracts, and options are included in this 30% calculation, which may limit a fund's investments in such instruments. If a fund purchases shares in certain foreign investment entities, defined as passive foreign investment companies (PFICs) in the Internal Revenue Code, it may be subject to U.S. federal income tax on a portion of any excess distribution or gain from the disposition of such shares. Interest charges may also be imposed on a fund with respect to deferred taxes arising from such distributions or gains. Generally, each fund will elect to mark-to-market any PFIC shares. Unrealized gains will be recognized as income for tax purposes and must be distributed to shareholders as dividends. Each fund is treated as a separate entity from the other funds of Fidelity Investment Trust for tax purposes. OTHER TAX INFORMATION. The information above is only a summary of some of the tax consequences generally affecting each fund and its shareholders, and no attempt has been made to discuss individual tax consequences. In addition to federal income taxes, shareholders may be subject to state and local taxes on fund distributions, and shares may be subject to state and local personal property taxes. Investors should consult their tax advisers to determine whether a fund is suitable to their particular tax situation. FMR 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. At present, the principal operating activities of FMR Corp. are those conducted by three of its divisions as follows: FSC, which is the transfer and shareholder servicing agent for certain of the funds advised by FMR; Fidelity Investments Institutional Operations Company, which performs shareholder servicing functions for institutional customers and funds sold through intermediaries; and Fidelity Investments Retail Marketing Company, which provides marketing services to various companies within the Fidelity organization. Fidelity investment personnel may invest in securities for their own account pursuant to a code of ethics that sets forth all employees' fiduciary responsibilities regarding the funds, establishes procedures for personal investing and restricts certain transactions. For example, all personal trades in most securities require pre-clearance, and participation in initial public offerings is prohibited. In addition, restrictions on the timing of personal investing in relation to trades by Fidelity funds and on short-term trading have been adopted. TRUSTEES AND OFFICERS The Trustees and executive officers of the trust are listed below. Except as indicated, each individual has held the office shown or other offices in the same company for the last five years. All persons named as Trustees also serve in similar capacities for other funds advised by FMR. The business address of each Trustee and officer who is an "interested person" (as defined in the Investment Company Act of 1940) is 82 Devonshire Street, Boston, Massachusetts 02109, which is also the address of FMR. The business address of all the other Trustees is Fidelity Investments, P.O. Box 9235, Boston, Massachusetts 02205-9235. Those Trustees who are "interested persons" by virtue of their affiliation with either the trust or FMR are indicated by an asterisk (*). *EDWARD C. JOHNSON 3d (65), Trustee and President, is Chairman, Chief Executive Officer and a Director of FMR Corp.; a Director and Chairman of the Board and of the Executive Committee of FMR; Chairman and a Director of FMR Texas Inc., Fidelity Management & Research (U.K.) Inc., and Fidelity Management & Research (Far East) Inc. *J. GARY BURKHEAD (54), Trustee and Senior Vice President, is President of FMR; and President and a Director of FMR Texas Inc., Fidelity Management & Research (U.K.) Inc., and Fidelity Management & Research (Far East) Inc. RALPH F. COX (63), Trustee (1991), is a consultant to Western Mining Corporation (1994). Prior to February 1994, he was President of Greenhill Petroleum Corporation (petroleum exploration and production, 1990). Until March 1990, Mr. Cox was President and Chief Operating Officer of Union Pacific Resources Company (exploration and production). He is a Director of Sanifill Corporation (non-hazardous waste, 1993) and CH2M Hill Companies (engineering). In addition, he served on the Board of Directors of the Norton Company (manufacturer of industrial devices, 1983-1990) and continues to serve on the Board of Directors of the Texas State Chamber of Commerce, and is a member of advisory boards of Texas A&M University and the University of Texas at Austin. PHYLLIS BURKE DAVIS (63), Trustee (1992). Prior to her retirement in September 1991, Mrs. Davis was the Senior Vice President of Corporate Affairs of Avon Products, Inc. She is currently a Director of BellSouth Corporation (telecommunications), Eaton Corporation (manufacturing, 1991), and the TJX Companies, Inc. (retail stores, 1990), and she previously served as a Director of Hallmark Cards, Inc. (1985-1991) and Nabisco Brands, Inc. In addition, she is a member of the President's Advisory Council of The University of Vermont School of Business Administration. RICHARD J. FLYNN (71), Trustee, is a financial consultant. Prior to September 1986, Mr. Flynn was Vice Chairman and a Director of the Norton Company (manufacturer of industrial devices). He is currently a Trustee of College of the Holy Cross and Old Sturbridge Village, Inc, and he previously served as a Director of Mechanics Bank (1971-1995). E. BRADLEY JONES (67), Trustee (1990). Prior to his retirement in 1984, Mr. Jones was Chairman and Chief Executive Officer of LTV Steel Company. He is a Director of TRW Inc. (original equipment and replacement products), Cleveland-Cliffs Inc (mining), Consolidated Rail Corporation, Birmingham Steel Corporation, and RPM, Inc. (manufacturer of chemical products, 1990), and he previously served as a Director of NACCO Industries, Inc. (mining and marketing, 1985-1995) and Hyster-Yale Materials Handling, Inc.(1985-1995). In addition, he serves as a Trustee of First Union Real Estate Investments, a Trustee and member of the Executive Committee of the Cleveland Clinic Foundation, a Trustee and member of the Executive Committee of University School (Cleveland), and a Trustee of Cleveland Clinic Florida. DONALD J. KIRK (62), Trustee, is Executive-in-Residence (1995) at Columbia University Graduate School of Business and a financial consultant. From 1987 to January 1995, Mr. Kirk was a Professor at Columbia University Graduate School of Business. Prior to 1987, he was Chairman of the Financial Accounting Standards Board. Mr. Kirk is a Director of General Re Corporation (reinsurance), and he previously served as a Director of Valuation Research Corp. (appraisals and valuations, 1993-1995). In addition, he serves as Chairman of the Board of Directors of the National Arts Stabilization Fund, Vice Chairman of the Board of Trustees of the Greenwich Hospital Association, and as a Member of the Public Oversight Board of the American Institute of Certified Public Accountants' SEC Practice Section (1995). *PETER S. LYNCH (52), Trustee (1990) is Vice Chairman and Director of FMR (1992). Prior to May 31, 1990, he was a Director of FMR and Executive Vice President of FMR (a position he held until March 31, 1991); Vice President of Fidelity Magellan Fund and FMR Growth Group Leader; and Managing Director of FMR Corp. Mr. Lynch was also Vice President of Fidelity Investments Corporate Services (1991-1992). He is a Director of W.R. Grace & Co. (chemicals) and Morrison Knudsen Corporation (engineering and construction). In addition, he serves as a Trustee of Boston College, Massachusetts Eye & Ear Infirmary, Historic Deerfield and Society for the Preservation of New England Antiquities, and as an Overseer of the Museum of Fine Arts of Boston (1990). GERALD C. McDONOUGH (66), Trustee, is Chairman of G.M. Management Group (strategic advisory services). Prior to his retirement in July 1988, he was Chairman and Chief Executive Officer of Leaseway Transportation Corp. (physical distribution services). Mr. McDonough is a Director of ACME-Cleveland Corp. (metal working, telecommunications and electronic products), Brush-Wellman Inc. (metal refining), York International Corp. (air conditioning and refrigeration), Commercial Intertech Corp. (water treatment equipment, 1992), and Associated Estates Realty Corporation (a real estate investment trust, 1993). EDWARD H. MALONE (70), Trustee. Prior to his retirement in 1985, Mr. Malone was Chairman, General Electric Investment Corporation and a Vice President of General Electric Company. He is a Director of Allegheny Power Systems, Inc. (electric utility), General Re Corporation (reinsurance) and Mattel Inc. (toy manufacturer). In addition, he serves as a Trustee of Corporate Property Investors, the EPS Foundation at Trinity College, the Naples Philharmonic Center for the Arts, and Rensselaer Polytechnic Institute, and he is a member of the Advisory Boards of Butler Capital Corporation Funds and Warburg, Pincus Partnership Funds. MARVIN L. MANN (62), Trustee (1993) is Chairman of the Board, President, and Chief Executive Officer of Lexmark International, Inc. (office machines, 1991). Prior to 1991, he held the positions of Vice President of International Business Machines Corporation ("IBM") and President and General Manager of various IBM divisions and subsidiaries. Mr. Mann is a Director of M.A. Hanna Company (chemicals, 1993) and Infomart (marketing services, 1991), a Trammell Crow Co. In addition, he serves as the Campaign Vice Chairman of the Tri-State United Way (1993) and is a member of the University of Alabama President's Cabinet (1990). THOMAS R. WILLIAMS (67), Trustee, is President of The Wales Group, Inc. (management and financial advisory services). Prior to retiring in 1987, Mr. Williams served as Chairman of the Board of First Wachovia Corporation (bank holding company), and Chairman and Chief Executive Officer of The First National Bank of Atlanta and First Atlanta Corporation (bank holding company). He is currently a Director of BellSouth Corporation (telecommunications), ConAgra, Inc. (agricultural products), Fisher Business Systems, Inc. (computer software), Georgia Power Company (electric utility), Gerber Alley & Associates, Inc. (computer software), National Life Insurance Company of Vermont, American Software, Inc., and AppleSouth, Inc. (restaurants, 1992). WILLIAM J. HAYES (61), Vice President (1994), is Vice President of Fidelity's equity funds; Senior Vice President of FMR; and Managing Director of FMR Corp. ROBERT H. MORRISON (55), Manager of Security Transactions of Fidelity's equity funds, is Vice President of FMR.] RICHARD HAZLEWOOD (35), Vice President, Emerging Markets Fund (1993) is an employee of FMR. GEORGE DOMOLKY (64), Vice President, Canada Fund (1989), is a vice president of FMR. SIMON FRASER (36), Vice President, Pacific Basin Fund (1993), is an employee of FMR. PATRICIA SATTERTHWAITE (36), Vice President, Latin America Fund (1993), is a vice president of FMR. SALLY WALDEN (36), Vice President, Europe Fund (1992), is an employee of FMR. ARTHUR S. LORING (48), Secretary, is Senior Vice President (1993) and General Counsel of FMR, Vice President-Legal of FMR Corp., and Vice President and Clerk of FDC. KENNETH A. RATHGEBER (48), Treasurer (1995), is Treasurer of the Fidelity funds and is an employee of FMR (1995). Before joining FMR, Mr. Rathgeber was a Vice President of Goldman Sachs & Co. (1978-1995), where he served in various positions, including Vice President of Proprietary Accounting (1988-1992), Global Co-Controller (1992-1994), and Chief Operations Officer of Goldman Sachs (Asia) LLC (1994-1995). JOHN H. COSTELLO (49), Assistant Treasurer, is an employee of FMR. LEONARD M. RUSH (49), Assistant Treasurer (1994), is an employee of FMR (1994). Prior to becoming Assistant Treasurer of the Fidelity funds, Mr. Rush was Chief Compliance Officer of FMR Corp. (1993-1994); Chief Financial Officer of Fidelity Brokerage Services, Inc. (1990-1993); and Vice President, Assistant Controller, and Director of the Accounting Department - - First Boston Corp. (1986-1990). The following table sets forth information describing the compensation of each current trustee of each fund for his or her services as trustee for the fiscal year ended October 31, 1995. COMPENSATION TABLE Aggregate Compensation
J. Gary Ralph Phyllis Richard Edward C. E. Donald Peter S. Gerald C. Edward Marvin L. Thomas Burkhead** F. Cox Burke J. Flynn Johnson 3d** Bradley J. Kirk Lynch** McDonough H. Mann R. Davis Jones Malone Williams Canada Fund $ 0 $ 154 $ 148 $ 195 $ 0 $ 154 $ 155 $ 0 $ 159 $ 154 $ 154 $ 152 Emerging $ 0 $ 662 $ 632 $ 838 $ 0 $ 662 $ 668 $ 0 $ 659 $ 662 $ 663 $ 655 Markets Fund Europe Fund $ 0 $ 210 $ 202 $ 266 $ 0 $ 210 $ 213 $ 0 $ 210 $ 210 $ 210 $ 208 Europe $ 0 $ 125 $ 120 $ 158 $ 0 $ 125 $ 127 $ 0 $ 125 $ 125 $ 125 $ 124 Capital Appreciation Fund France Fund+ $ 0 $ 3 $ 3 $ 5 $ 0 $ 3 $ 3 $ 0 $ 3 $ 3 $ 3 $ 3 Germany $ 0 $ 5 $ 5 $ 7 $ 0 $ 5 $ 5 $ 0 $ 5 $ 5 $ 5 $ 5 Fund+ Hong Kong $ 0 $ 25 $ 25 $ 30 $ 0 $ 25 $ 25 $ 0 $ 25 $ 25 $ 25 $ 25 & China Fund + Japan Fund $ 0 $ 161 $ 154 $ 204 $ 0 $ 161 $ 164 $ 0 $ 161 $ 161 $ 162 $ 160 Japan Small $ 0 $ 25 $ 25 $ 30 $ 0 $ 25 $ 25 $ 0 $ 25 $ 25 $ 25 $ 25 Companies Fund + Latin $ 0 $ 285 $ 271 $ 361 $ 0 $ 285 $ 288 $ 0 $ 284 $ 285 $ 286 $ 283 America Fund Nordic Fund + $ 0 $ 10 $ 10 $ 15 $ 0 $ 10 $ 10 $ 0 $ 10 $ 10 $ 10 $ 10 Pacific Basin $ 0 $ 195 $ 186 $ 246 $ 0 $ 195 $ 198 $ 0 $ 194 $ 195 $ 195 $ 193 Fund Southeast $ 0 $ 301 $ 289 $ 382 $ 0 $ 301 $ 305 $ 0 $ 300 $ 301 $ 301 $ 298 Asia Fund United $ 0 $ 3 $ 3 $ 5 $ 0 $ 3 $ 3 $ 0 $ 3 $ 3 $ 3 $ 3 Kingdom Fund +
Trustees Pension or Estimated Annual Total Retirement Benefits Upon Compensation Benefits Accrued Retirement from the Fund as Part of Fund from the Complex* Expenses from the Fund Complex* Fund Complex* J. Gary Burkhead** $ 0 $ 0 $ 0 Ralph F. Cox 5,200 52,000 125,000 Phyllis Burke Davis 5,200 52,000 122,000 Richard J. Flynn 0 52,000 154,500 Edward C. Johnson 3d** 0 0 0 E. Bradley Jones 5,200 49,400 123,500 Donald J. Kirk 5,200 52,000 125,000 Peter S. Lynch** 0 0 0 Gerald C. McDonough 5,200 52,000 125,000 Edward H. Malone 5,200 44,200 128,000 Marvin L. Mann 5,200 52,000 125,000 Thomas R. Williams 5,200 52,000 126,500
* Information is as of December 31, 1994 for 206 funds in the complex. ** Interested trustees of the fund are compensated by FMR. + Estimated The non-interested Trustees may elect to defer receipt of all or a percentage of their annual fees in accordance with the terms of a Deferred Compensation Plan (the "Plan"). Under the Plan, compensation deferred by a Trustee is periodically adjusted as though an equivalent amount had been invested and reinvested in shares of one or more funds in the complex designated by such Trustee. The amount paid to the Trustee under the Plan will be determined based upon the performance of such investments. Deferral of Trustees' fees in accordance with the Plan will have a negligible effect on the fund's assets, liabilities, and net income per share, and will not obligate the fund to retain the services of any Trustee or to pay any particular level of compensation to the Trustee. The fund may invest in such designated securities without shareholder approval. Under a retirement program adopted in July 1988, the non-interested Trustees, upon reaching age 72, become eligible to participate in a retirement program under which they receive payments during their lifetime from a fund based on their basic trustee fees and length of service. The obligation of a fund to make such payments is not secured or funded. Trustees become eligible if, at the time of retirement, they have served on the Board for at least five years. Currently, Messrs. Ralph S. Saul, William R. Spaulding, Bertram H. Witham, and David L. Yunich, all former non-interested Trustees, receive retirement benefits under the program. As of October 31, 1995, FMR owned the majority of the outstanding shares of France F und, Germany Fund, Hong Kong and China Fund, Japan Small Companies Fund, Nordic Fund, and United Kingdom Fund. Also as of October 31, 1995, the Trustees and officers of the funds owned, in the aggregate, less than 1% of each fund's total outstanding shares. MANAGEMENT CONTRACTS Each fund employs FMR to furnish investment advisory and other services. Under its management contract with each fund, FMR acts as investment adviser and, subject to the supervision of the Board of Trustees, directs the investments of each fund in accordance with its investment objective, policies, and limitations. FMR also provides each fund with all necessary office facilities and personnel for servicing each fund's investments, compensates all officers of each fund and all Trustees who are "interested persons" of the trust or of FMR, and all personnel of each fund or FMR performing services relating to research, statistical, and investment activities. In addition, FMR or its affiliates, subject to the supervision of the Board of Trustees, provide the management and administrative services necessary for the operation of each fund. These services include providing facilities for maintaining each fund's organization; supervising relations with custodians, transfer and pricing agents, accountants, underwriters, and other persons dealing with each fund; preparing all general shareholder communications and conducting shareholder relations; maintaining each fund's records and the registration of each fund's shares under federal and state laws; developing management and shareholder services for each fund; and furnishing reports, evaluations, and analyses on a variety of subjects to the Trustees. In addition to the management fee payable to FMR and the fees payable to FSC, each fund pays all of its expenses, without limitation, that are not assumed by those parties. Each fund pays for the typesetting, printing, and mailing of its proxy materials to shareholders, legal expenses, and the fees of the custodian, auditor and non-interested Trustees. Although each fund's current management contract provides that each fund will pay for typesetting, printing, and mailing prospectuses, statements of additional information, notices, and reports to shareholders, the trust, on behalf of each fund has entered into a revised transfer agent agreement with FSC, pursuant to which FSC bears the costs of providing these services to existing shareholders. Other expenses paid by each fund include interest, taxes, brokerage commissions, and each fund's proportionate share of insurance premiums and Investment Company Institute dues. Each fund is also liable for such non-recurring expenses as may arise, including costs of any litigation to which each fund may be a party, and any obligation it may have to indemnify its officers and Trustees with respect to litigation. FMR is Canada Fund's, Europe Fund's, and Pacific Basin Fund's manager pursuant to management contracts dated March 1, 1992, which were approved by shareholders on February 19, 1992. FMR is Japan's manager pursuant to a management contract dated July 16, 1992, which was approved by FMR, then the sole shareholder of Japan Fund , on September 10, 1992. FMR is Emerging Markets Fund's manager pursuant to a management contract dated March 1, 1992, which was approved by shareholders on February 19, 1992. FMR is Latin America Fund's and Southeast Asia Fund 's manager pursuant to management contracts dated March 18, 1993, which were approved by FMR, then the sole shareholder of Latin America Fund and Southeast Asia Fund , on March 24, 1993. FMR is Europe Capital Appreciation Fund's manager pursuant to a management contract dated November 22, 1993, which was approved by FMR, then the sole shareholder of the fund on November 18, 1993. FMR is France Fund's , Germany Fund's, Hong Kong and China Fund's , Japan Small Companies Fund's , Nordic Fund 's , and United Kingdom Fund 's manager pursuant to management contracts dated September 14, 1995 which were approved by FMR as the then sole shareholder of the fund on October 17, 1995. For the services of FMR under the contracts , Emerging Markets Fund , France Fund , Germany Fund, Hong Kong and China Fund , Japan Small Companies Fund , Latin America Fund , Nordic Fund , and United Kingdom Fund pay FMR a monthly management fee composed of the sum of two elements: a group fee rate and an individual fund fee rate. For the services of FMR under the contracts Canada Fund , Europe Fund , Europe Capital Appreciation Fund , Japan Fund , Pacific Basin Fund , and Southeast Asia Fund pay FMR a monthly management fee composed of the sum of two elements: a basic fee and a performance adjustment based on a comparison of each fund's performance to that of its comparative index . COMPUTING THE BASIC FEE. The basic fee rate is composed of two elements: a group fee rate and an individual fund fee rate. COMPUTING THE MANAGEMENT FEE. For each fund, the group fee rate is based on the monthly average net assets of all of the registered investment companies with which FMR has management contracts and is calculated on a cumulative basis pursuant to the graduated fee rate schedule shown below on the left. The schedule below on the right shows the effective annual group fee rate at various asset levels, which is the result of cumulatively applying the annualized rates on the left. For example, the effective annual fee rate at $ 352 billion of group net assets - the approximate level for October 1995 - was .3111 %, which is the weighted average of the respective fee rates for each level of group net assets up to $ 352 billion. GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES
Average Group Annualized Group Net Effective Annual Assets Rate Assets Fee Rate 0 - $3 billion .5200% $ 0.5 billion .5200% 3 - 6 .4900 25 .4238 6 - 9 .4600 50 .3823 9 - 12 .4300 75 .3626 12 - 15 .4000 100 .3512 15 - 18 .3850 125 .3430 18 - 21 .3700 150 .3371 21 - 24 .3600 175 .3325 24 - 30 .3500 200 .3284 30 - 36 .3450 225 .3253 36 - 42 .3400 250 .3223 42 - 48 .3350 275 .3198 48 - 66 .3250 300 .3175 66 - 84 .3200 325 .3153 84 - 102 .3150 350 .3133 102 - 138 .3100 138 - 174 .3050 174 - 228 .3000 228 - 282 .2950 282 - 336 .2900 Over 336 .2850
Under the current management contract with FMR, the group fee rate for all funds except France Fund , Germany Fund, Hong Kong and China Fund , Japan Small Companies Fund , Nordic Fund , and United Kingdom Fund , is based on a schedule with breakpoints ending at .3000% for average group assets in excess of $174 billion. Prior to March 1992, the group fee breakpoints shown above for average group assets in excess of $138 billion and under $228 billion were voluntarily adopted by FMR and went into effect on January 1, 1992. The additional breakpoints shown above for average group assets in excess of $228 billion were voluntarily adopted by FMR on November 1, 1993. On August 1, 1994, FMR voluntarily revised the prior extensions to the group fee rate schedule with respect to all funds previously discussed, and added new breakpoints for average group assets in excess of $210 billion and under $390 billion as shown in the schedule below. The revised group fee rate schedule was identical to the above schedule for average group assets under $210 billion. Under the current management contract with FMR, the group fee rate for France Fund, Germany Fund, Hong Kong and China Fund, Japan Small Companies Fund, Nordic Fund and United Kingdom Fund is based on a schedule with breakpoints ending at .2700%. On January 1, 1996, FMR will voluntarily add new breakpoints to the schedule for average group assets in excess of $390 billion, pending shareholder approval of a new management contract reflecting the revised schedule and additional breakpoints. The revised group fee rate schedule and its extensions provide for lower management fee rates as FMR's assets under management increase. For average group assets in excess of $210 billion, the revised group fee rate schedule with additional breakpoints voluntarily adopted by FMR is as follows: GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES
Average Group Annualized Group Net Effective Annual Assets Rate Assets Fee Rate 174 - $210 billion .3000% $ 150 billion .3371% 210 - 246 .2950 175 .3325 246 - 282 .2900 200 .3284 282 - 318 .2850 225 .3249 318 - 354 .2800 250 .3219 354 - 390 .2750 275 .3190 390 - 426 .2700 300 .3163 426 - 462 .2650 325 .3137 462 - 498 .2600 350 .3113 498 - 534 .2550 375 .3090 Over 534 .2500 400 .3067 425 .3046 450 .3024 475 .3003 500 .2982 525 .2962 550 .2942
Each fund's individual fund fee rate is .45%. Based on the average net assets of funds advised by FMR for October 1995, the annual management fee rate and the annual basic fee rate would be calculated as follows:
Group Fee Rate Individual Fund Fee Rate Management/Basic Fee Rate . 3111 % + .45% = . 7611 %
One-twelfth (1/12) of this annual management/basic fee rate is then applied to a fund's average net assets for the current month, giving a dollar amount which is the fee for that month. BENCHMARK INDICES. Canada Fund compares its performance to the Toronto Stock Exchange 300 Composite Index (TSE 300 Index). Europe Fund and Europe Capital Appreciation Fund compare their performance to the Morgan Stanley Capital International Europe Index (Europe Index); Pacific Basin Fund compares its performance to the Morgan Stanley Capital International Pacific Index (Pacific Index). Japan Fund compares its performance to the Tokyo Stock Exchange Price Index (TOPIX Index). Southeast Asia Fund compares its performance to the record of the Morgan Stanley Capital International Combined Far East ex-Japan Free Index (combined Far East ex-Japan Free Index) over the same period. COMPUTING THE PERFORMANCE ADJUSTMENT The basic fee is subject to an upward or downward adjustment, depending upon whether, and to what extent, a fund's investment performance for the performance period exceeds, or is exceeded by, the record of its Comparative Index over the same period. The performance period consists of the most recent month plus the previous 35 months. Europe Capital Appreciation Fund , Japan Fund , and Southeast Asia Fund 's performance periods commenced the first day of the first full month of operation following commencement of operations (January 1, 1994, October 1, 1992, and May 1, 1993, respectively). Each month subsequent to the twelfth month, a new month will be added to the performance period until the performance period equals 36 months. Thereafter, the performance period will consist of the most recent month plus the previous 35 months. Each percentage point of difference (up to a maximum difference of + 10) is multiplied by a performance adjustment rate of .02%. Thus, the maximum annualized adjustment rate is +.20%. This performance comparison is made at the end of each month. One twelfth (1/12) of this rate is then applied to each fund's average net assets for the entire performance period, giving a dollar amount which will be added to (or subtracted from) the basic fee. Each fund's performance is calculated based on change in net asset value. For purposes of calculating the performance adjustment, any dividends or capital gain distributions paid by each fund are treated as if reinvested in fund shares at the net asset value as of the record date for payment. The record of the Comparative Index is based on change in value and is adjusted for any cash distributions from the companies whose securities compose the I ndex. FMR pays any costs of subscribing to the indices and of obtaining additional information needed to compute the management fee in conformance with applicable laws and regulations. Because the adjustment to the basic fee is based on each fund's performance compared to the investment record of the appropriate Comparative Index , the controlling factor is not whether each fund's performance is up or down per se, but whether it is up or down more or less than the record of its respective Comparative Index . Moreover, the comparative investment performance of each fund is based solely on the relevant performance period without regard to the cumulative performance over a longer or shorter period of time. EMERGING MARKETS FUND AND LATIN AMERICA FUND . The tables below show the management fee paid to FMR; and the management fee as a percentage of each fund's average net assets for the fiscal periods ended October 31, 1995, 1994, and 1993. Management Fee as a % of Average Management Fee Net Assets EMERGING MARKETS FUND 1995 $ 10,483,318 .7660% 1994 12,659,735 .7723% 1993 1,111,793 .7701% LATIN AMERICA FUND 1995 $ 4,473,579 .7661% 1994 6,050,004 .7732% 1993* 479,545 .7697%** * From April 19, 1993 (commencement of operations). ** Annualized CANADA FUND , EUROPE FUND , EUROPE CAPITAL APPRECIATION FUND , JAPAN FUND , PACIFIC BASIN FUND , AND SOUTHEAST ASIA FUNDS. The tables below show the management fee paid to FMR (including the effect of the performance adjustment); the dollar amount of negative or positive performance adjustments; and the net management fee as a percentage of the funds' average net assets for the periods ended October 31, 1995, 1994, and 1993. Management Fee Management Fee as a Including Performance Performance % of Average Adjustment Adjustment Net Assets CANADA FUND 1995 $ 2,498,644 $ (167,417) .7163% 1994 1,714,068 60,175 .7978% 1993 22,566 50,721 .8552% EUROPE FUND 1995 $ 3,767,736 $ 145,908 .7962% 1994 3,565,039 243,702 .7226% 1993 3,100,828 (703,601) .6350% EUROPE CAPITAL APPRECIATION FUND 1995 $ 2,171,262 $ 208,549 .8482% 1994* 1,908,662 0 .7678%** * From December 21, 1993 (commencement of operations). ** Annualized JAPAN FUND 1995 $ 2,258,147 $ (362,948) .6601% 1994 2,699,594 (76,576) .7450% 1993 754,644 (4,307) .7666% PACIFIC BASIN FUND 1995 $ 3,184,306 $ 86,567 .7882% 1994 4,375,724 443,566 .8583% 1993 2,003,886 58,458 .7976% SOUTHEAST ASIA FUND 1995 $ 3,949,976 $ (1,128,697) .5949% 1994 5,598,064 (633,730) .6937% 1993* 582,244 0 .7688%** * From April 19, 1993 (commencement of operations). ** Annualized The figures shown above reflect FMR's voluntary implementation of group fee rate schedule changes for the funds as described on page . If FMR had not voluntarily implemented these group fee rate changes, the funds' management fees would have been higher. To comply with the California Code of Regulations, FMR will reimburse each fund if and to the extent that the fund's aggregate annual operating expenses exceed specified percentages of its average net assets. The applicable percentages are 2 1/2% of the first $30 million, 2% of the next $70 million, and 1 1/2% of average net assets in excess of $100 million. When calculating a fund's expenses for purposes of this regulation, each fund may exclude interest, taxes, brokerage commissions, and extraordinary expenses, as well as a portion of its custodian fees attributable to investments in foreign securities. SUB-ADVISORS. FMR has entered into sub-advisory agreements with FMR U.K., FMR Far East, and FIIA. FIIA, in turn, has entered into a sub-advisory agreement with its wholly owned subsidiary FIIAL U.K. On behalf of Hong Kong and China Fund, Japan Fund , Japan Small Companies Fund , and Southeast Asia Fund , FMR also has entered into a sub-advisory agreement with FIJ. Pursuant to the sub-advisory agreements, FMR may receive investment advice and research services outside the U.S. from the sub-advisors. FMR may grant the sub-advisors investment management authority as well as the authority to buy and sell securities if FMR believes it would be beneficial to the funds. FMR entered into the sub-advisory agreements described above with respect to Canada Fund, Emerging Markets Fund , Europe Fund , Pacific Basin Fund , and on March 1, 1992 following shareholder approval of the agreements on February 19, 1992. FMR entered into the sub-advisory agreements described above with respect to Japan Fund on July 16, 1992, which was approved by FMR, then the sole shareholder of Japan Fund , on September 10, 1992; with respect to Latin America Fund and Southeast Asia Fund on March 18, 1993, which were approved by FMR, then the sole shareholder of Latin America Fund and Southeast Asia Fund , on March 24, 1993; with respect to Europe Capital Appreciation Fund on November 18, 1993, which was approved by FMR, then the sole shareholder of the fund on November 18, 1993; and with respect to France Fund , Germany Fund, Hong Kong and China Fund , Japan Small Companies Fund , Nordic Fund , and United Kingdom Fund on September 14, 1995, which were approved by FMR as the then sole shareholder of each fund on October 17, 1995. FMR U.K. and FMR Far East, which were organized in 1986, are wholly owned subsidiaries of FMR. FIJ and FIIA are wholly owned subsidiaries of Fidelity International Limited (FIL), a Bermuda company formed in 1968 which primarily provides investment advisory services to non-U.S. investment companies and institutional investors investing in securities throughout the world. Edward C. Johnson 3d, Johnson family members, and various trusts for the benefit of the Johnson family owns, directly or indirectly, more than 25% of the voting common stock of FIL. FIJ was organized in Japan in 1986. FIIA was organized in Bermuda in 1983. FIIAL U.K. was organized in the United Kingdom in 1984, and is a wholly owned subsidiary of Fidelity International Management Holdings Limited, an indirect wholly owned subsidiary of FIL. Under the sub-advisory agreements FMR pays the fees of FMR U.K., FMR Far East, FIJ, and FIIA. FIIA, in turn, pays the fees of FIIAL U.K. For providing non-discretionary investment advice and research services the sub-advisers are compensated as follows: (small solid bullet) FMR pays FMR U.K. and FMR Far East fees equal to 110% and 105%, respectively, of FMR U.K.'s and FMR Far East's costs incurred in connection with providing investment advice and research services. (small solid bullet) FMR pays FIIA and FIJ fees equal to 30% of FMR's monthly management fee with respect to the average net assets held by the fund for which the sub-adviser has provided FMR with investment advice and research services. (small solid bullet) FIIA pays FIIAL U.K. a fee equal to 110% of FIIAL U.K.'s costs incurred in connection with providing investment advice and research services. For providing discretionary investment management and executing portfolio transactions, the sub-advisers are compensated as follows: (small solid bullet) FMR pays FMR U.K., FMR Far East, FIJ, and FIIA a fee equal to 50% of its monthly management fee (including any performance adjustment) with respect to the fund's average net assets managed by the sub-adviser on a discretionary basis. (small solid bullet) FIIA pays FIIAL U.K. a fee equal to 110% of FIIAL U.K.'s costs incurred in connection with providing discretionary investment management services. Currently, FIIA exercises discretionary management authority over Hong Kong and China Fund and Southeast Asia Fund is its capacity as sub-adviser. currently, FIIAL U.K. exercises discretionary management authority over Europe Fund, France Fund, Germany Fund, Nordic Fund, Pacific Basin Fund, and United Kingdom Fund is its capacity as sub-adviser. Currently, FIJ provides Japan Fund and Japan Small Companies Fund with investment management authority is its capacity as sub-adviser. For providing discretionary investment management and executing portfolio transactions on behalf of the funds, the fees paid to each of the sub-advisors for fiscal 1995, 1994, and 1993 are listed in the table below. There were no fees paid to FMR U.K., FMR Far East, and FIJ for fiscal 1995, 1994, and 1993.
Fund Name Fiscal Year FIIA Canada Fund 1995 $ 0 1994 0 1993 0 Emerging Markets Fund 1995 $ 0 1994 0 1993 0 Europe Fund 1995 $ 1,812,402 1994 1,756,433 1993 2,335,345 Europe Capital Appreciation Fund 1995 $ 0 1994 0 1993 0 Japan Fund 1 1995 $ 1,311,538 1994 305,758 1993 0 Latin America Fund 2 1995 $ 0 1994 0 1993 0 Pacific Basin Fund 1995 $ 1,550,062 1994 2,190,484 1993 687,196 Southeast Asia Fund 2 1995 $ 2,541,446 1994 2,844,499 1993 291,008 2
1 From September 15, 1992 (commencement of operations). 2 From April 19, 1993 (commencement of operations). CONTRACTS WITH FMR AFFILIATES FSC is transfer, dividend disbursing, and shareholder servicing agent for each fund. FSC receives annual account fees and asset-based fees for each retail account and certain institutional accounts based on account size. In addition, the fees for retail accounts are subject to increase based on postal rate changes. With respect to certain institutional retirement accounts, FSC receives asset-based fees only. With respect to certain other institutional retirement accounts, FSC receives annual account fees and asset based fees based on fund type. The asset-based fees are subject to adjustment if the year-to-date total return of the Standard & Poor's Composite Index of 500 Stocks is greater than positive or negative 15%. FSC also collects small account fees from certain accounts with balances of less than $2,500. FSC pays out-of-pocket expenses associated with providing transfer agent services. In addition, FSC bears the expense of typesetting, printing, and mailing prospectuses, statements of additional information, and all other reports, notices, and statements to shareholders, with the exception of proxy statements. FSC also performs the calculations necessary to determine each fund's net asset value per share and dividends, and maintains each fund's accounting records. The annual fee rates for these pricing and bookkeeping services are based on each fund's average net assets, specifically, .06% for the first $500 million of average net assets and .03% for average net assets in excess of $500 million. The fee is limited to a minimum of $45,000 and a maximum of $750,000 per year. The table below shows the fees paid to FSC for pricing and bookkeeping services, including related out-of-pocket expenses during each fund's last three fiscal years: Pricing and Bookkeeping Fees
1995 1994 1993 Canada Fund $ 209,805 $ 129,038 $ 50,881 Emerging Markets Fund $ 560,714 $ 641,914 $ 100,767 Europe Fund $ 283,887 $ 294,804 $ 286,229 Europe Capital Appreciation Fund $ 153,762 $ 151,780 1 n/a Japan Fund $ 205,394 $ 208,003 $ 76,445 Latin America Fund 2 $ 323,090 $ 382,374 $ 44,467 2 Pacific Basin Fund $ 242,212 $ 299,541 $ 150,276 Southeast Asia Fund 2 $ 349,043 $ 395,097 $ 49,486 2
1 From December 21, 1993 (commencement of operations). 2 From April 19, 1993 (commencement of operations). FSC also receives fees for administering each fund's securities lending program. Securities lending fees are based on the number and duration of individual securities loans. For fiscal 1995, 1994, and 1993 there were no securities lending fees incurred by the funds. Each fund has a distribution agreement with FDC, a Massachusetts corporation organized on July 18, 1960. FDC is a broker-dealer registered under the Securities Exchange Act of 1934 and is a member of the National Association of Securities Dealers, Inc. The distribution agreements call for FDC to use all reasonable efforts, consistent with its other business, to secure purchasers for shares of each fund, which are continuously offered. Promotional and administrative expenses in connection with the offer and sale of shares are paid by FDC. The table below shows the sales charge revenue paid to FDC for the following fiscal periods:
PAID TO FDC Sales Charge Revenue Deferred Sales Charge Revenue 1995 1994 1993 1995 1994 1993 Canada Fund $ 872,526 n/a $ 50,670 $ 3,075 $ 5,130 $ 12,252 Emerging Markets Fund $ 2,207,409 $ 2,416,374 $ 103,572 n/a n/a n/a Europe Fund $ 389,484 $ 814,169 $ 2,116,938 $ 66,854 $ 85,678 $ 213,896 Europe Capital Appreciation Fund $ 155,891 n/a n/a n/a n/a n/a Japan Fund $ 375,382 n/a n/a n/a n/a n/a Latin America Fund $ 1,673,435 $ 1,245,357 n/a n/a n/a n/a Pacific Basin Fund $ 94,810 $ 1,709,242 $ 2,239,532 $ 10,008 $ 24,748 $ 56,119 Southeast Asia Fund $ 805,224 $ 763,269 n/a n/a n/a n/a
DESCRIPTION OF THE TRUST TRUST ORGANIZATION. Fidelity Canada Fund , Fidelity Emerging Markets Fund , Fidelity Europe Fund, Fidelity Europe Capital Appreciation, Fidelity France Fund, Fidelity Germany Fund, Fidelity Hong Kong & China Fund , Fidelity Japan Fund, Fidelity Japan Small Companies Fund , Fidelity Latin America Fund , Fidelity Nordic Fund, Fidelity Pacific Basin Fund, Fidelity Southeast Asia Fund, and Fidelity United Kingdom Fund are funds of Fidelity Investment Trust (the trust), an open-end management investment company originally organized as a Massachusetts business trust on April 20, 1984. On November 3, 1986, the trust's name was changed from Fidelity Overseas Fund to Fidelity Investment Trust. Currently, there are 24 funds of the trust: Fidelity Overseas Fund, Fidelity Europe Fund, Fidelity Europe Capital Appreciation Fund, Fidelity Pacific Basin Fund, Fidelity New Markets Income Fund, Fidelity International Growth & Income Fund, Fidelity Global Bond Fund, Fidelity Canada Fund, Fidelity Worldwide Fund, Fidelity Emerging Market Fund, Fidelity Short-Term World Income Fund, Fidelity Diversified International Fund, Fidelity International Value Fund, Fidelity Diversified Global Fund, Fidelity Japan Fund, Fidelity Emerging Markets Fund, Fidelity Latin America Fund, Fidelity Southeast Asia Fund, Fidelity France Fund, Fidelity Germany Fund, Fidelity Japan Small Companies Fund, Fidelity Hong Kong and China, Fund, Fidelity Nordic Fund, and Fidelity United Kingdom Fund. The Declaration of Trust permits the Trustees to create additional funds. In the event that FMR ceases to be the investment adviser to the trust or a fund, the right of the trust or fund to use the identifying name "Fidelity" may be withdrawn. There is a remote possibility that one fund might become liable for any misstatement in its prospectus or statement of additional information about another fund. The assets of the trust received for the issue or sale of shares of each fund and all income, earnings, profits, and proceeds thereof, subject only to the rights of creditors, are especially allocated to such fund, and constitute the underlying assets of such fund. The underlying assets of each fund are segregated on the books of account, and are to be charged with the liabilities with respect to such fund and with a share of the general expenses of the trust. Expenses with respect to the trust are to be allocated in proportion to the asset value of the respective funds, except where allocations of direct expense can otherwise be fairly made. The officers of the trust, subject to the general supervision of the Board of Trustees, have the power to determine which expenses are allocable to a given fund, or which are general or allocable to all of the funds. In the event of the dissolution or liquidation of the trust, shareholders of each fund are entitled to receive as a class the underlying assets of such fund available for distribution. SHAREHOLDER AND TRUSTEE LIABILITY. The trust is an entity of the type commonly known as "Massachusetts business trust." Under Massachusetts law, shareholders of such a trust may, under certain circumstances, be held personally liable for the obligations of the trust. The Declaration of Trust provides that the trust shall not have any claim against shareholders except for the payment of the purchase price of shares and requires that each agreement, obligation, or instrument entered into or executed by the trust or the Trustees shall include a provision limiting the obligations created thereby to the trust and its assets. The Declaration of Trust provides for indemnification out of each fund's property of any shareholders held personally liable for the obligations of the fund. The Declaration of Trust also provides that each fund shall, upon request, assume the defense of any claim made against any shareholder for any act or obligation of the fund and satisfy any judgment thereon. Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances in which the fund itself would be unable to meet its obligations. FMR believes that, in view of the above, the risk of personal liability to shareholders is remote. The Declaration of Trust further provides that the Trustees, if they have exercised reasonable care, will not be liable for any neglect or wrongdoing, but nothing in the Declaration of Trust protects Trustees against any liability to which they would otherwise be subject by reason of willful misfeasance, bad faith, gross negligence, or reckless disregard of the duties involved in the conduct of their office. VOTING RIGHTS. Each fund's capital consists of shares of beneficial interest. The shares have no preemptive or conversion rights; the voting and dividend rights, the right of redemption, and the privilege of exchange are described in the Prospectus. Shares are fully paid and nonassessable, except as set forth under the heading "Shareholder and Trustee Liability" above. Shareholders representing 10% or more of the trust or a fund may, as set forth in the Declaration of Trust, call meetings of the trust or a fund for any purpose related to the trust or fund, as the case may be, including, in the case of a meeting of the entire trust, the purpose of voting on removal of one or more Trustees. The trust or any fund may be terminated upon the sale of its assets to another open-end management investment company, or upon liquidation and distribution of its assets, if approved by vote of the holders of a majority of the outstanding shares of the trust or the fund. If not so terminated, the trust and the funds will continue indefinitely. CUSTODIAN. Chase Manhattan Bank, N.A., 1211 Avenue of the Americas, New York, New York, is custodian of the assets of Canada Fund, Emerging Markets Fund , Europe Fund , Europe Capital Appreciation Fund , Japan Fund, Latin America Fund , Pacific Basin Fund , and Southeast Asia Fund . Brown Brothers Harriman & Co., 40 Water Street, Boston, Massachusetts, is custodian of France Fund , Germany Fund, Hong Kong and China Fund , Japan Small Companies Fund , Nordic Fund , and United Kingdom Fund . The custodians are responsible for the safekeeping of a fund's assets and the appointment of the subcustodian banks and clearing agencies. The custodian takes no part in determining the investment policies of a fund or in deciding which securities are purchased or sold by a fund. However, a fund may invest in obligations of the custodian and may purchase securities from or sell securities to the custodian. Morgan Guaranty Trust Company of New York, The Bank of New York, and Chemical Bank, each headquartered in New York, also may serve as a special purpose custodian of certain assets in connection with pooled repurchase agreement transactions. FMR, its officers and directors, its affiliated companies, and the Board of Trustees may, from time to time, conduct transactions with various banks, including banks serving as custodians for certain funds advised by FMR. The Boston branch of Brown Brothers Harriman & Co. leases its office space from an affiliate of FMR at a lease payment which, when entered into, was consistent with prevailing market rates. Transactions that have occurred to date include mortgages and personal and general business loans. In the judgment of FMR, the terms and conditions of those transactions were not influenced by existing or potential custodial or other fund relationships. AUDITOR. Coopers & Lybrand L.L.P., One Post Office Square, Boston, Massachusetts serves as Canada Fund's, Emerging Markets Fund's , Europe Fund's , and Pacific Basin Fund's , independent accountant. Price Waterhouse LLP, 160 Federal Street, Boston, Massachusetts serves as Europe Capital Appreciation Fund's, Japan Fund's, France Fund's , Germany Fund's, Hong Kong and China Fund's , Japan Small Companies Fund's , Latin America Fund's, Nordic Fund's , Southeast Asia Fund's and United Kingdom Fund 's independent accountant. The auditor examines financial statements for the funds and provides other audit, tax, and related services. FINANCIAL STATEMENTS Financial statements and financial highlights for Canada Fund, Emerging Markets Fund , Europe Fund , Europe Capital Appreciation Fund , Japan Fund, Latin America Fund , Pacific Basin Fund , and Southeast Asia Fund 's for the fiscal year ended October 31, 1995 are included in the funds' Annual Report, which is a separate report supplied with this Statement of Additional Information. Each fund's financial statements and financial highlights are incorporated herein by reference. Because France Fund , Germany Fund, Hong Kong and China Fund , Japan Small Companies Fund , Nordic Fund , and United Kingdom Fund are new funds of the trust, no financial statements and highlights are incorporated herein by reference. APPENDIX DESCRIPTION OF MOODY'S INVESTORS SERVICE, INC.'S CORPORATE BOND RATINGS: AAA - Bonds which are rated Aaa are judged to be of the best quality. They carry the smallest degree of investment risk and are generally referred to as "gilt edged." Interest payments are protected by a large or by an exceptionally stable margin and principal is secure. While the various protective elements are likely to change, such changes as can be visualized are most unlikely to impair the fundamentally strong position of such issues. AA - Bonds which are rated Aa are judged to be of high quality by all standards. Together with the Aaa group they comprise what are generally known as high-grade bonds. They are rated lower than the best bonds because margins of protection may not be as large as in Aaa securities or fluctuation of protective elements may be of greater amplitude or there may be other elements present which make the long-term risks appear somewhat larger than the Aaa securities. A - Bonds which are rated A possess many favorable investment attributes and are to be considered as upper-medium-grade obligations. Factors giving security to principal and interest are considered adequate but elements may be present which suggest a susceptibility to impairment sometime in the future. BAA - Bonds which are rated Baa are considered as medium-grade obligations, (i.e., they are neither highly protected nor poorly secured). Interest payments and principal security appear adequate for the present but certain protective elements may be lacking or may be characteristically unreliable over any great length of time. Such bonds lack outstanding investment characteristics and in fact have speculative characteristics as well. BA - Bonds which are rated Ba are judged to have speculative elements; their future cannot be considered as well assured. Often the protection of interest and principal payments may be very moderate and thereby not well safeguarded during both good and bad times over the future. Uncertainty of position characterizes bonds in this class. B - Bonds which are rated B generally lack characteristics of the desirable investment. Assurance of interest and principal payments or of maintenance of other terms of the contract over any long period of time may be small. CAA - Bonds which are rated Caa are of poor standing. Such issues may be in default or there may be present elements of danger with respect to principal or interest. CA - Bonds which are rated Ca represent obligations which are speculative in a high degree. Such issues are often in default or have other marked short-comings. C - Bonds which are rated C are the lowest-rated class of bonds and issues so rated can be regarded as having extremely poor prospects of ever attaining any real investment standing. Moody's applies numerical modifiers, 1, 2, and 3, in each generic rating classification from Aa through B in its corporate bond rating system. The modifier 1 indicates that the security ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates that the issue ranks in the lower end of its generic rating category. DESCRIPTION OF STANDARD & POOR'S CORPORATION'S CORPORATE BOND RATINGS: AAA - Debt rated AAA has the highest rating assigned by Standard & Poor's to a debt obligation. Capacity to pay interest and repay principal is extremely strong. AA - Debt rated AA has a very strong capacity to pay interest and repay principal and differs from the higher-rated issues only in small degree. A - Debt rated A has a strong capacity to pay interest and repay principal, although it is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than debt in higher rated categories. BBB - Debt rated BBB is regarded as having an adequate capacity to pay interest and repay principal. Whereas it normally exhibits adequate protection parameters, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity to pay interest and repay principal for debt in this category than in higher-rated categories. BB - Debt rate BB has less near-term vulnerability to default than other speculative issues. However, it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions which could lead to inadequate capacity to meet timely interest and principal payments. The BB rating category is also used for debt subordinated to senior debt that is assigned an actual or implied BBB- rating. B - Debt rated B has a greater vulnerability to default but currently has the capacity to meet interest payments and principal repayments. Adverse business, financial, or economic conditions will likely impair capacity or willingness to pay interest and repay principal. The B rating category is also used for debt subordinated to senior debt that is assigned an actual or implied BB or BB- rating. CCC - Debt rated CCC has a currently identifiable vulnerability to default, and is dependent upon favorable business, financial, and economic conditions to meet timely payment of interest and repayment of principal. In the event of adverse business, financial, or economic conditions, it is not likely to have the capacity to pay interest and repay principal. The CCC rating category is also used for debt subordinated to senior debt that is assigned an actual or implied B or B- rating. CC - Debt rated CC is typically applied to debt subordinated to senior debt which is assigned an actual or implied CCC debt rating. C - The rating C is typically applied to debt subordinated to senior debt which is assigned an actual or implied CCC- debt rating. The C rating may be used to cover a situation where a bankruptcy petition has been filed but debt service payments are continued. CI - The rating CI is reserved for income bonds on which no interest is being paid. D - Debt rated D is in payment default. The D rating category is used when interest payments or principal payments are not made on the date due even if the applicable grace period has not expired, unless S&P believes that such payments will be made during such grace period. The D rating will also be used upon the filing of a bankruptcy petition if debt service payments are jeopardized. The ratings from AA to CCC may be modified by the addition of a plus or minus to show relative standing within the major rating categories. PART C. OTHER INFORMATION Item 24. Financial Statements and Exhibits (a)(1) Financial Statements for Fidelity Canada Fund for the fiscal year ended December 31, 1995 are incorporated herein by reference to the fund's Statement of Additional Information and were filed on December 22, 1995 for Fidelity Investment Trust (File No. 2-90649) pursuant to Rule 30d-1 under the Investment Company Act of 1940 and are incorporated herein by reference. (a)(2) Financial Statements for Fidelity Emerging Markets Fund for the fiscal year ended December 31, 1995 are incorporated herein by reference to the fund's Statement of Additional Information and were filed on December 22, 1995 for Fidelity Investment Trust (File No. 2-90649) pursuant to Rule 30d-1 under the Investment Company Act of 1940 and are incorporated herein by reference. (a)(3) Financial Statements for Fidelity Europe Fund for the fiscal year ended December 31, 1995 are incorporated herein by reference to the fund's Statement of Additional Information and were filed on December 22, 1995 for Fidelity Investment Trust (File No. 2-90649) pursuant to Rule 30d-1 under the Investment Company Act of 1940 and are incorporated herein by reference. (a)(4) Financial Statements for Fidelity Europe Capital Appreciation Fund for the fiscal year ended December 31, 1995 are incorporated herein by reference to the fund's Statement of Additional Information and were filed on December 22, 1995 for Fidelity Investment Trust (File No. 2-90649) pursuant to Rule 30d-1 under the Investment Company Act of 1940 and are incorporated herein by reference. (a)(5) Financial Statements for Fidelity Japan Fund for the fiscal year ended December 31, 1995 are incorporated herein by reference to the fund's Statement of Additional Information and were filed on December 22, 1995 for Fidelity Investment Trust (File No. 2-90649) pursuant to Rule 30d-1 under the Investment Company Act of 1940 and are incorporated herein by reference. (a)(6) Financial Statements for Fidelity Latin America Fund for the fiscal year ended December 31, 1995 are incorporated herein by reference to the fund's Statement of Additional Information and were filed on December 22, 1995 for Fidelity Investment Trust (File No. 2-90649) pursuant to Rule 30d-1 under the Investment Company Act of 1940 and are incorporated herein by reference. (a)(7) Financial Statements for Fidelity Pacific Basin Fund for the fiscal year ended December 31, 1995 are incorporated herein by reference to the fund's Statement of Additional Information and were filed on December 22, 1995 for Fidelity Investment Trust (File No. 2-90649) pursuant to Rule 30d-1 under the Investment Company Act of 1940 and are incorporated herein by reference. (a)(8) Financial Statements for Fidelity Southeast Asia Fund for the fiscal year ended December 31, 1995 are incorporated herein by reference to the fund's Statement of Additional Information and were filed on December 22, 1995 for Fidelity Investment Trust (File No. 2-90649) pursuant to Rule 30d-1 under the Investment Company Act of 1940 and are incorporated herein by reference. (a)(9) Financial Statements for Fidelity International Growth & Income Fund for the fiscal year ended December 31, 1995 are incorporated herein by reference to the fund's Statement of Additional Information and were filed on December 22, 1995 for Fidelity Investment Trust (File No. 2-90649) pursuant to Rule 30d-1 under the Investment Company Act of 1940 and are incorporated herein by reference. (a)(10) Financial Statements for Fidelity Diversified International Fund for the fiscal year ended December 31, 1995 are incorporated herein by reference to the fund's Statement of Additional Information and were filed on December 22, 1995 for Fidelity Investment Trust (File No. 2-90649) pursuant to Rule 30d-1 under the Investment Company Act of 1940 and are incorporated herein by reference. (a)(11) Financial Statements for Fidelity International Value Fund for the fiscal year ended December 31, 1995 are incorporated herein by reference to the fund's Statement of Additional Information and were filed on December 22, 1995 for Fidelity Investment Trust (File No. 2-90649) pursuant to Rule 30d-1 under the Investment Company Act of 1940 and are incorporated herein by reference. (a)(12) Financial Statements for Fidelity Overseas Fund for the fiscal year ended December 31, 1995 are incorporated herein by reference to the fund's Statement of Additional Information and were filed on December 22, 1995 for Fidelity Investment Trust (File No. 2-90649) pursuant to Rule 30d-1 under the Investment Company Act of 1940 and are incorporated herein by reference. (a)(13) Financial Statements for Fidelity Worldwide Fund for the fiscal year ended December 31, 1995 are incorporated herein by reference to the fund's Statement of Additional Information and were filed on December 22, 1995 for Fidelity Investment Trust (File No. 2-90649) pursuant to Rule 30d-1 under the Investment Company Act of 1940 and are incorporated herein by reference. (a)(14) Financial Statements and Financial Highlights, included in the Semiannual Report for Fidelity France Fund, Fidelity Germany Fund, Fidelity Hong Kong and China Fund, Fidelity Japan Small Companies Fund, Fidelity Nordic Fund, and Fidelity United Kingdom Fund for the fiscal period November 1, 1995 (commencement of operations) through April 30, 1996 are incorporated herein by reference into the fund's Statement of Additional Information and are filed herein as Exhibit 24(a)(14). (b) Exhibits: (1) Restated Declaration of Trust, dated February 16, 1995, is incorporated herein by reference to Exhibit 1 to Post-Effective Amendment No. 58. (2) By-Laws of the Trust are incorporated herein by reference to Exhibit 2 to Fidelity Union Street Trust Post-Effective Amendment No. 87 (File No. 2-50318). (3) Not applicable. (4) Not applicable. (5)(a) Management Contract, dated October 1, 1992, between Fidelity Diversified International Fund and Fidelity Management & Research Company is incorporated herein by reference to Exhibit 5(a) to Post-Effective Amendment No. 58. (b) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (Far East) Inc. on behalf of Fidelity Diversified International Fund dated October 1, 1992, is incorporated herein by reference to Exhibit 5(p) to Post-Effective Amendment No. 51. (c) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (U.K.) Inc. on behalf of Fidelity Diversified International Fund dated October 1, 1992 is incorporated herein by reference to Exhibit 5(nn) to Post-Effective Amendment No. 51. (d) Sub-Advisory Agreement between Fidelity International Investment Advisors and Fidelity International Investment Advisors (U.K.) Limited on behalf of Fidelity Diversified International Fund dated October 1, 1992 is incorporated herein by reference as Exhibit 5(yyy) to Post-Effective Amendment No. 51. (e) Management Contract dated March 1, 1992, between Fidelity International Growth & Income Fund and Fidelity Management & Research Company is incorporated herein by reference to Exhibit 5(e) to Post-Effective Amendment No. 57. (f) Sub-Advisory Agreement dated April 1, 1992 between Fidelity Management & Research Company and Fidelity Management & Research (Far East) Inc. on behalf of Fidelity International Growth & Income Fund is incorporated herein by reference to Exhibit 5(f) to Post-Effective Amendment No. 57. (g) Sub-Advisory Agreement dated April 1, 1992 between Fidelity Management & Research Company and Fidelity Management & Research (U.K.) Inc. on behalf of Fidelity International Growth & Income Fund is incorporated herein by reference to Exhibit 5(g) to Post-Effective Amendment No. 57. (h) Sub-Advisory Agreement dated April 1, 1992 between Fidelity International Investment Advisors and Fidelity International Investment Advisors (U.K.) Limited on behalf of Fidelity International Growth & Income Fund is incorporated herein by reference to Exhibit 5(h) to Post-Effective Amendment No. 57. (i) Sub-Advisory Agreement, dated April 1, 1992, between Fidelity Management & Research Company and Fidelity International Investment Advisors on behalf of Fidelity International Growth & Income Fund is incorporated herein by reference to Exhibit 5(i) to Post-Effective Amendment No. 57. (j) Management Contract dated September 16, 1994, between Fidelity International Value Fund and Fidelity Management & Research Company is incorporated herein by reference to Exhibit 5(j) to Post-Effective Amendment No. 57. (k) Sub-Advisory Agreement dated September 16, 1994 between Fidelity Management & Research Company and Fidelity Management & Research (Far East) Inc. on behalf of Fidelity International Value Fund is incorporated herein by reference to Exhibit 5(k) to Post-Effective Amendment No. 57. (l) Sub-Advisory Agreement dated September 16, 1994, between Fidelity Management & Research Company and Fidelity Management & Research (U.K.) Inc. on behalf of Fidelity International Value Fund is incorporated herein by reference to Exhibit 5(l) to Post-Effective Amendment No. 57. (m) Sub-Advisory Agreement between Fidelity International Investment Advisors and Fidelity International Investment Advisors (U.K.) Limited on behalf of Fidelity International Value Fund is filed herein as Exhibit 5(m). (n) Sub-Advisory Agreement dated September 16, 1994, between Fidelity Management & Research Company and Fidelity International Investment Advisors on behalf of Fidelity International Value Fund is incorporated herein by reference to Exhibit 5(n) to Post-Effective Amendment No. 57. (o) Sub-Advisory Agreement dated September 16, 1994, between Fidelity Management & Research Company and Fidelity Investments Japan Limited on behalf of Fidelity International Value Fund is incorporated herein by reference to Exhibit 5(o) to Post-Effective Amendment No. 57. (p) Management Contract dated March 1, 1992, between Fidelity Overseas Fund and Fidelity Management & Research Company is incorporated herein by reference to Exhibit No. 5(p) to Post-Effective Amendment No. 57. (q) Sub-Advisory Agreement dated April 1, 1992 between Fidelity Management & Research Company and Fidelity Management & Research (Far East) Inc. on behalf of Fidelity Overseas Fund is incorporated herein by reference to Exhibit 5(q) to Post-Effective Amendment No. 57. (r) Sub-Advisory Agreement dated April 1, 1992 between Fidelity Management & Research Company and Fidelity Management & Research (U.K.) on behalf of Fidelity Overseas Fund is incorporated herein by reference to Exhibit 5(r) to Post-Effective Amendment No. 57. (s) Sub-Advisory Agreement dated April 1, 1992 between Fidelity International Investment Advisors and Fidelity International Investment Advisors (U.K.) Limited on behalf of Fidelity Overseas Fund is incorporated herein by reference to Exhibit 5(s) to Post-Effective Amendment No. 57. (t) Sub-Advisory Agreement, dated April 1, 1992, between Fidelity Management & Research Company and Fidelity International Investment Advisors on behalf of Fidelity Overseas Fund is incorporated herein by reference to Exhibit 5(t) to Post-Effective Amendment No. 57. (u) Management Contract dated March 1, 1992, between Fidelity Worldwide Fund, and Fidelity Management & Research Company is incorporated herein by reference to Exhibit 5(u) to Post-Effective Amendment No. 57. (v) Sub-Advisory Agreement dated April 1, 1992 between Fidelity Management & Research Company and Fidelity Management & Research (Far East) Inc. on behalf of Fidelity Worldwide Fund is incorporated herein by reference to Exhibit 5(v) to Post-Effective Amendment No. 57. (w) Sub-Advisory Agreement dated April 1, 1992 between Fidelity Management & Research Company and Fidelity Management & Research (U.K.) Inc. on behalf of Fidelity Worldwide Fund is incorporated herein by reference to Exhibit 5(w) to Post-Effective Amendment No. 57. (x) Sub-Advisory Agreement dated April 1, 1992 between Fidelity International Investment Advisors and Fidelity International Investment Advisors (U.K.) Limited on behalf of Fidelity Worldwide Fund is incorporated herein by reference to Exhibit 5(x) to Post-Effective Amendment No. 57. (y) Sub-Advisory Agreement, dated April 1, 1992, between Fidelity Management & Research Company and Fidelity International Investment Advisors on behalf of Fidelity Worldwide Fund is incorporated herein by reference to Exhibit 5(y) to Post-Effective Amendment No. 57. (z) Management Contract dated March 1, 1992, between Fidelity Canada Fund and Fidelity Management & Research Company is incorporated herein by reference to Exhibit 5(z) to Post-Effective Amendment No. 57. (aa) Sub-Advisory Agreement dated April 1, 1992 between Fidelity Management & Research Company and Fidelity Management & Research (Far East) Inc. on behalf of Fidelity Canada Fund is incorporated herein by reference to Exhibit 5(aa) to Post-Effective Amendment No. 57. (bb) Sub-Advisory Agreement dated April 1, 1992 between Fidelity Management & Research Company and Fidelity Management & Research (U.K.) Inc. on behalf of Fidelity Canada Fund is incorporated herein by reference to Exhibit 5(bb) to Post-Effective Amendment No. 57. (cc) Sub-Advisory Agreement dated April 1, 1992 between Fidelity International Investment Advisors and Fidelity International Investment Advisors (U.K.) Limited on behalf of Fidelity Canada Fund is incorporated herein by reference to Exhibit 5(cc) to Post-Effective Amendment No. 57. (dd) Sub-Advisory Agreement, dated April 1, 1992, between Fidelity Management & Research Company and Fidelity International Investment Advisors on behalf of Fidelity Canada Fund is incorporated herein by reference to Exhibit 5(dd) to Post-Effective Amendment No. 57. (ee) Management Contract dated March 1, 1992, between Fidelity Europe Fund and Fidelity Management & Research Company is incorporated herein by reference to Exhibit 5(ee) to Post-Effective Amendment No. 57. (ff) Sub-Advisory Agreement dated April 1, 1992 between Fidelity Management & Research Company and Fidelity Management & Research (Far East) Inc. on behalf of Fidelity Europe Fund is incorporated herein by reference to Exhibit 5(ff) to Post-Effective Amendment No. 57. (gg) Sub-Advisory Agreement dated April 1, 1992 between Fidelity Management & Research Company and Fidelity Management & Research (U.K.) Inc. on behalf of Fidelity Europe Fund is incorporated herein by reference to Exhibit 5(gg) to Post-Effective Amendment No. 57. (hh) Sub-Advisory Agreement dated April 1, 1992 between Fidelity International Investment Advisors and Fidelity International Investment Advisors (U.K.) Limited on behalf of Fidelity Europe Fund is incorporated herein by reference to Exhibit 5(hh) to Post-Effective Amendment No. 57. (ii) Sub-Advisory Agreement, dated April 1, 1992, between Fidelity Management & Research Company and Fidelity International Investment Advisors on behalf of Fidelity Europe Fund is incorporated herein by reference to Exhibit 5(ii) to Post-Effective Amendment No. 57. (jj) Management Contract between Fidelity Europe Capital Appreciation Fund and Fidelity Management & Research Company dated November 18, 1993 is incorporated herein by reference to Exhibit 5(o) to Post-Effective Amendment No. 51. (kk) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (Far East) Inc. on behalf of Fidelity Europe Capital Appreciation Fund dated November 18, 1993 is incorporated herein by reference to Exhibit 5(dd) to Post- Effective Amendment No. 53. (ll) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (U.K.) Inc. on behalf of Fidelity Europe Capital Appreciation Fund dated November 18, 1993 is incorporated herein by reference to Exhibit 5(ss) to Post- Effective Amendment No. 53. (mm) Sub-Advisory Agreement between Fidelity International Investment Advisors and Fidelity International Investment Advisors (U.K.) Limited on behalf of Fidelity Europe Capital Appreciation Fund, dated November 18, 1993, is incorporated herein by reference to Exhibit 5(ggg) to Post-Effective Amendment No. 55. (nn) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity International Investment Advisors on behalf of Fidelity Europe Capital Appreciation Fund dated November 18, 1993, is incorporated herein by reference as Exhibit 5(uuu) to Post-Effective Amendment No. 55. (oo) Management Contract between Fidelity Japan Fund and Fidelity Management & Research Company dated July 16, 1992 is incorporated herein by reference to Exhibit 5(k) to Post-Effective Amendment No. 51. (pp) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (Far East) Inc. on behalf of Fidelity Japan Fund dated July 16, 1992 is incorporated herein by reference to Exhibit 5(z) to Post-Effective Amendment No. 53. (qq) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (U.K.) Inc. on behalf of Fidelity Japan Fund dated July 16, 1992 is incorporated herein by reference to Exhibit 5(oo) to Post Effective Amendment No. 53. (rr) Sub-Advisory Agreement between Fidelity International Investment Advisors and Fidelity International Investment Advisors (U.K.) Limited on behalf of Fidelity Japan Fund dated July 16, 1992, is incorporated herein by reference to Exhibit 5(ccc) to Post-Effective Amendment No. 55. (ss) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity International Investment Advisors on behalf of Fidelity Japan Fund dated July 16, 1992, is incorporated herein by reference to Exhibit 5(qqq) to Post-Effective Amendment No. 55. (tt) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Investments Japan Limited on behalf of Fidelity Japan Fund dated April 12, 1994 is incorporated herein by reference to Exhibit No. 5(ss)(i) to Post-Effective Amendment No. 57. (uu) Management Contract dated March 1, 1992, between Fidelity Pacific Basin Fund and Fidelity Management & Research Company is incorporated herein by reference to Exhibit 5(tt) to Post-Effective Amendment No. 57. (vv) Sub-Advisory Agreement dated April 1, 1992 between Fidelity Management & Research Company and Fidelity Management & Research (Far East) Inc. on behalf of Fidelity Pacific Basin Fund is incorporated herein by reference to Exhibit 5(uu) to Post-Effective Amendment No. 57. (ww) Sub-Advisory Agreement dated April 1, 1992 between Fidelity Management & Research Company and Fidelity Management & Research (U.K.) Inc. on behalf of Fidelity Pacific Basin Fund is incorporated herein by reference to Exhibit 5(vv) to Post-Effective Amendment No. 57. (xx) Sub-Advisory Agreement dated April 1, 1992 between Fidelity International Investment Advisors and Fidelity International Investment Advisors (U.K.) Limited on behalf of Fidelity Pacific Basin Fund is incorporated herein by reference to Exhibit 5(ww) to Post-Effective Amendment No. 57. (yy) Sub-Advisory Agreement, dated April 1, 1992, between Fidelity Management & Research Company and Fidelity International Investment Advisors on behalf of Fidelity Pacific Basin Fund is incorporated herein by reference to Exhibit 5(xx) to Post-Effective Amendment No. 57. (zz) Management Contract dated March 1, 1992, between Fidelity Emerging Markets Fund and Fidelity Management & Research Company is incorporated herein by reference to Exhibit 5(yy) to Post-Effective Amendment No. 57. (aaa) Sub-Advisory Agreement dated April 1, 1992 between Fidelity Management & Research Company and Fidelity Management & Research (Far East) Inc. on behalf of Fidelity Emerging Markets Fund is incorporated herein by reference to Exhibit 5(zz) to Post-Effective Amendment No. 57. (bbb) Sub-Advisory Agreement dated April 1, 1992 between Fidelity Management & Research Company and Fidelity Management & Research (U.K.) Inc. on behalf of Fidelity Emerging Markets Fund is incorporated herein by reference to Exhibit 5(aaa) to Post-Effective Amendment No. 57. (ccc) Sub-Advisory Agreement dated April 1, 1992 between Fidelity International Investment Advisors and Fidelity International Investment Advisors (U.K.) Limited on behalf of Fidelity Emerging Markets Fund is incorporated herein by reference to Exhibit 5(bbb) to Post-Effective Amendment No. 57. (ddd) Sub-Advisory Agreement, dated April 1, 1992, between Fidelity Management & Research Company and Fidelity International Investment Advisors on behalf of Fidelity Emerging Markets Fund is incorporated herein by reference to Exhibit 5(ccc) to Post-Effective Amendment No. 57. (eee) Management Contract between Fidelity Latin America Fund and Fidelity Management & Research Company dated March 18, 1993 is incorporated herein by reference to Exhibit 5(l) to Post-Effective Amendment No. 48. (fff) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (Far East) Inc. on behalf of Fidelity Latin America Fund dated March 18, 1993 is incorporated herein by reference to Exhibit 5(z) to Post-Effective Amendment No. 48. (ggg) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (U.K.) Inc. on behalf of Fidelity Latin America Fund is incorporated herein by reference to Exhibit 5(nn) to Post-Effective Amendment No. 48. (hhh) Sub-Advisory Agreement between Fidelity International Investment Advisors and Fidelity International Investment Advisors (U.K.) Limited on behalf of Fidelity Latin America Fund dated March 18, 1993, is incorporated herein by reference to Exhibit 5(ddd) to Post-Effective Amendment No. 55. (iii) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity International Investment Advisors on behalf of Fidelity Latin America Fund dated March 18, 1993 is incorporated herein by reference as Exhibit 5(rrr) to Post-Effective Amendment No. 51. (jjj) Management Contract between Fidelity Southeast Asia Fund and Fidelity Management & Research Company dated March 18, 1993 is incorporated herein by reference to Exhibit 5(m) to Post-Effective Amendment No. 48. (kkk) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (Far East) Inc. on behalf of Fidelity Southeast Asia Fund dated March 18, 1993 is incorporated herein by reference to Exhibit 5(aa) to Post-Effective Amendment No. 48. (lll) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (U.K.) Inc. on behalf of Fidelity Southeast Asia Fund dated March 18, 1993 is incorporated herein by reference to Exhibit 5(oo) to Post-Effective Amendment No. 48. (mmm)Sub-Advisory Agreement between Fidelity International Investment Advisors and Fidelity International Investment Advisors (U.K.) Limited on behalf of Fidelity Southeast Asia Fund dated March 18, 1993, is incorporated herein by reference to Exhibit 5(eee) to Post-Effective Amendment No. 55. (nnn) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity International Investment Advisors on behalf of Fidelity Southeast Asia Fund dated March 18, 1993 is incorporated herein by reference as Exhibit 5(sss) to Post-Effective Amendment No. 51. (ooo) Sub-Advisory Agreement dated March 18, 1993, between Fidelity Management & Research Company and Fidelity International Investment Advisors on behalf of Fidelity Southeast Asia Fund dated March 18, 1993 is incorporated herein by reference to Exhibit 5(nnn) to Post-Effective Amendment No. 57. (ppp) Management Contract between Fidelity Global Bond Fund and Fidelity Management & Research Company, dated March 1, 1992, is incorporated herein by reference to Exhibit 5(ooo) to Post-Effective Amendment No. 58. (qqq) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (Far East) Inc. on behalf of Fidelity Global Bond Fund dated April 1, 1992 is incorporated herein by reference to Exhibit 5(ppp) to Post-Effective Amendment No. 58. (rrr) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (U.K.) Inc. on behalf of Fidelity Global Bond Fund dated April 1, 1992 is incorporated herein by reference to Exhibit 5(qqq) to Post-Effective Amendment No. 58. (sss) Sub-Advisory Agreement between Fidelity International Investment Advisors and Fidelity International Investment Advisors (U.K.) Limited on behalf of Fidelity Global Bond Fund dated April 1, 1992, is incorporated herein by reference to Exhibit 5(rrr) to Post-Effective Amendment No. 58. (ttt) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity International Investment Advisors on behalf of Fidelity Global Bond Fund dated April 1, 1992 is incorporated herein by reference to Exhibit 5(sss) to Post-Effective Amendment No. 58. (uuu) Management Contract between Fidelity Short-Term World Income Fund and Fidelity Management & Research Company, dated March 1, 1992, is incorporated herein by reference to Exhibit 5(ttt) to Post-Effective Amendment No. 58. (vvv) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (Far East) Inc. on behalf of Fidelity Short-Term World Income Fund dated April 1, 1992, is incorporated herein by reference to Exhibit 5(uuu) to Post-Effective Amendment No. 58. (www) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (U.K.) on behalf of Fidelity Short-Term World Income Fund dated April 1, 1992, is incorporated herein by reference to Exhibit 5(vvv) to Post-Effective Amendment No. 58. (xxx) Sub-Advisory Agreement between Fidelity International Investment Advisors and Fidelity International Investment Advisors (U.K.) Limited on behalf of Fidelity Short-Term World Income Fund dated April 1, 1992, is incorporated herein by reference to Exhibit 5(www) to Post-Effective Amendment No. 58. (yyy) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity International Investment Advisors on behalf of Fidelity Short-World Income Fund dated April 1, 1992, is incorporated herein by reference to Exhibit 5(xxx) to Post-Effective Amendment No. 58. (zzz) Management Contract between Fidelity New Markets Income Fund and Fidelity Management & Research Company dated April 15, 1993 is incorporated herein by reference to Exhibit 5(n) to Post-Effective Amendment No. 48. (aaaa) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (Far East) Inc. on behalf of Fidelity New Markets Income Fund dated April 15, 1993 is incorporated herein by reference to Exhibit 5(bb) to Post-Effective Amendment No. 48. (bbbb) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (U.K.) Inc. dated April 15, 1993 on behalf of Fidelity New Markets Income Fund is incorporated herein by reference to Exhibit 5(pp) to Post-Effective Amendment No. 48. (cccc) Sub-Advisory Agreement between Fidelity International Investment Advisors and Fidelity International Investment Advisors (U.K.) Limited on behalf of Fidelity New Markets Income Fund is incorporated herein by reference to Exhibit 5(fff) to Post-Effective Amendment No. 50. (dddd) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity International Investment Advisors on behalf of Fidelity New Markets Income Fund is incorporated herein by reference to Exhibit 5(ttt) to Post-Effective Amendment No. 50. (eeee) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Investments Japan Limited on behalf of Fidelity New Markets Income Fund dated April 15, 1993, is incorporated herein by reference to Exhibit 5(dddd) to Post-Effective Amendment No. 58. (ffff) Management Contract between Fidelity France Fund and Fidelity Management & Research Company dated November 1, 1995 is filed herein as Exhibit 5(ffff). (gggg)Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (Far East) Inc. on behalf of Fidelity France Fund is incorporated herein by reference as Exhibit 5(gggg) to Post-Effective Amendment No. 62. (hhhh) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (U.K.) Inc. on behalf of Fidelity France Fund is incorporated herein by reference as Exhibit 5(hhhh) to Post-Effective Amendment No. 62. (iiii) Sub-Advisory Agreement between Fidelity International Investment Advisors and Fidelity International Investment Advisors (U.K.) Limited on behalf of Fidelity France Fund is incorporated herein by reference as Exhibit 5(iiii) to Post-Effective Amendment No. 62. (jjjj) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity International Investment Advisors on behalf of Fidelity France Fund is incorporated herein by reference as Exhibit 5(jjjj) to Post-Effective Amendment No. 62. (kkkk) Management Contract between Fidelity Germany Fund and Fidelity Management & Research Company dated November 1, 1995 is filed herein as Exhibit 5(kkkk). (llll) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (Far East) Inc. on behalf of Fidelity Germany Fund is incorporated herein by reference as Exhibit 5(llll) to Post-Effective Amendment No. 62. (mmmm) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (U.K.) Inc. on behalf of Fidelity Germany Fund is incorporated herein by reference as Exhibit 5(mmmm) to Post-Effective Amendment No. 62. (nnnn) Sub-Advisory Agreement between Fidelity International Investment Advisors and Fidelity International Investment Advisors (U.K.) Limited on behalf of Fidelity Germany Fund is incorporated herein by reference as Exhibit 5(nnnn) to Post-Effective Amendment No. 62. (oooo) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity International Investment Advisors on behalf of Fidelity Germany Fund is incorporated herein by reference as Exhibit 5(ffff) to Post-Effective Amendment No. 62. (pppp)Management Contract between Fidelity United Kingdom Fund and Fidelity Management & Research Company dated November 1, 1995 is filed herein as Exhibit 5(pppp). (qqqq)Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (Far East) Inc. on behalf of Fidelity United Kingdom Fund is incorporated herein by reference as Exhibit 5(qqqq) to Post-Effective Amendment No. 62. (rrrr) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (U.K.) Inc. on behalf of Fidelity United Kingdom Fund is incorporated herein by reference as Exhibit 5(rrrr) to Post-Effective Amendment No. 62. (ssss) Sub-Advisory Agreement between Fidelity International Investment Advisors and Fidelity International Investment Advisors (U.K.) Limited on behalf of Fidelity United Kingdom Fund is incorporated herein by reference as Exhibit 5(ssss) to Post-Effective Amendment No. 62. (tttt) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity International Investment Advisors on behalf of Fidelity United Kingdom Fund is incorporated herein by reference as Exhibit 5(ffff) to Post-Effective Amendment No. 62. (uuuu) Management Contract between Fidelity Japan Small Companies Fund and Fidelity Management & Research Company dated November 1, 1995 is filed herein as Exhibit 5(uuuu). (vvvv) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (Far East) Inc. on behalf of Fidelity Japan Small Companies Fund is incorporated herein by reference as Exhibit 5(vvvv) to Post-Effective Amendment No. 62. (wwww) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (U.K.) Inc. on behalf of Fidelity Japan Small Companies Fund is incorporated herein by reference as Exhibit 5(wwww) to Post-Effective Amendment No. 62. (xxxx) Sub-Advisory Agreement between Fidelity International Investment Advisors and Fidelity International Investment Advisors (U.K.) Limited on behalf of Fidelity Japan Small Companies Fund is incorporated herein by reference as Exhibit 5(xxxx) to Post-Effective Amendment No. 62. (yyyy) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity International Investment Advisors on behalf of Fidelity Japan Small Companies Fund is incorporated herein by reference as Exhibit 5(yyyy) to Post-Effective Amendment No. 62. (zzzz) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Investments Japan Limited on behalf of Fidelity Japan Small Companies Fund is filed herein as Exhibit 5(zzzz). (aaaaa) Management Contract between Fidelity Hong Kong and China Fund and Fidelity Management & Research Company dated November 1, 1995 is filed herein as Exhibit 5(aaaaa). (bbbbb) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (Far East) Inc. on behalf of Fidelity Hong Kong and China Fund is incorporated herein by reference as Exhibit 5(bbbbb) to Post-Effective Amendment No. 62. (ccccc) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (U.K.) Inc. on behalf of Fidelity Hong Kong and China Fund is incorporated herein by reference as Exhibit 5(ccccc) to Post-Effective Amendment No. 62. (ddddd) Sub-Advisory Agreement between Fidelity International Investment Advisors and Fidelity International Investment Advisors (U.K.) Limited on behalf of Fidelity Hong Kong and China Fund is incorporated herein by reference as Exhibit 5(ddddd) to Post-Effective Amendment No. 62. (eeeee) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity International Investment Advisors on behalf of Fidelity Hong Kong and China Fund is incorporated herein by reference as Exhibit 5(eeeee) to Post-Effective Amendment No. 62. (fffff) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Investments Japan Limited on behalf of Fidelity Hong Kong and China Fund is filed herein as Exhibit 5(fffff). (ggggg) Management Contract between Fidelity Nordic Fund and Fidelity Management & Research Company dated November 1, 1995 is filed herein as Exhibit 5(ggggg). (hhhhh) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (Far East) Inc. on behalf of Fidelity Nordic Fund is incorporated herein by reference as Exhibit 5(hhhhh) to Post-Effective Amendment No. 62. (iiiii) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (U.K.) Inc. on behalf of Fidelity Nordic Fund is incorporated herein by reference as Exhibit 5(iiiii) to Post-Effective Amendment No. 62. (jjjjj) Sub-Advisory Agreement between Fidelity International Investment Advisors and Fidelity International Investment Advisors (U.K.) Limited on behalf of Fidelity Nordic Fund is incorporated herein by reference as Exhibit 5(jjjjj) to Post-Effective Amendment No. 62. (kkkkk) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity International Investment Advisors on behalf of Fidelity Nordic Fund is incorporated herein by reference as Exhibit 5(kkkkk) to Post-Effective Amendment No. 62. (6) (a) General Distribution Agreement dated April 1, 1987 between Fidelity Overseas Fund, Fidelity Europe Fund, Fidelity Pacific Basin Fund, Fidelity International Growth & Income Fund, Fidelity Canada Fund, dated May 19, 1990, between Fidelity Worldwide Fund, dated September 30, 1990, between Fidelity Emerging Markets Fund (formerly "Fidelity International Opportunities Fund", dated December 12, and between Fidelity Diversified International Fund and Fidelity Distributors Corporation are incorporated herein by reference to Exhibit Nos. 6(a)(1-8) to Post-Effective Amendment No. 57. (b) General Distribution Agreement between Fidelity Global Bond Fund and Fidelity Distributors Corporation dated April 1, 1987, is incorporated herein by reference to Exhibit 6(b) to Post-Effective Amendment No. 58. (c) Amendment, dated January 1, 1988, to General Distribution Agreement between Fidelity Global Bond Fund and Fidelity Distributors Corporation, dated April 1, 1987, is incorporated herein by reference to Exhibit 6(c) to Post-Effective Amendment No. 58. (d) General Distribution Agreement between Fidelity Short-Term World Income Fund and Fidelity Distributors Corporation dated September 20, 1991, is incorporated herein by reference to Exhibit 6(d) to Post-Effective Amendment No. 58. (e) Amendment, dated May 10, 1994, to General Distribution Agreement between Fidelity Short-Term World Income Fund and Fidelity Distributors Corporation, dated September 20, 1991, is incorporated herein by reference to Exhibit 6(e) to Post-Effective Amendment No. 58. (f) General Distribution Agreement between Fidelity Diversified International Fund and Fidelity Distributors Corporation dated December 12, 1991 is incorporated herein by reference to Exhibit 6(k) to Post-Effective Amendment No. 38. (g) General Distribution Agreement between Fidelity Japan Fund and Fidelity Distributors Corporation dated July 16, 1992, is incorporated herein by reference to Exhibit 6(l) to Post-Effective Amendment No. 55. (h) General Distribution Agreement between Fidelity Latin America Fund and Fidelity Distributors Corporation dated March 18, 1993, is incorporated herein by reference to Exhibit 6(m) to Post-Effective Amendment No. 55. (i) General Distribution Agreement between Fidelity Southeast Asia Fund and Fidelity Distributors Corporation dated March 18, 1993, is incorporated herein by reference to Exhibit 6(n) to Post-Effective Amendment No. 55. (j) General Distribution Agreement between Fidelity New Markets Income Fund and Fidelity Distributors Corporation was filed as Exhibit 6(o) to Post-Effective Amendment No. 50. (k) General Distribution Agreement between Fidelity Europe Capital Appreciation Fund and Fidelity Distributors Corporation dated November 18, 1993, is incorporated herein by reference to Exhibit 6(p) to Post-Effective Amendment No. 55. (l) General Distribution Agreement between Fidelity International Value Fund and Fidelity Distributors Corporation, dated September 16, 1994, is incorporated herein by reference to Exhibit 6(j) to Post-Effective Amendment No. 58. (m) General Distribution Agreement between Fidelity France Fund and Fidelity Distributors Corporation, dated September 14, 1995, is filed herein as Exhibit 6(m). (n) General Distribution Agreement between Fidelity Germany Fund and Fidelity Distributors Corporation, dated September 14, 1995, is filed herein as Exhibit 6(n). (o) General Distribution Agreement between Fidelity United Kingdom Fund and Fidelity Distributors Corporation, dated September 14, 1995, is filed herein as Exhibit 6(o). (p) General Distribution Agreement between Fidelity Japan Small Companies Fund and Fidelity Distributors Corporation, dated September 14, 1995, is filed herein as Exhibit 6(p). (q) General Distribution Agreement between Fidelity Hong Kong and China Fund and Fidelity Distributors Corporation, dated September 14, 1995, is filed herein as Exhibit 6(q). (r) General Distribution Agreement between Fidelity Nordic Fund and Fidelity Distributors Corporation, dated September 14, 1995, is filed herein as Exhibit 6(r). (7)(a) Retirement Plan for Non-Interested Person Trustees, Directors or General Partners, as amended on November 16, 1995, is incorporated herein by reference to Exhibit 7(a) of Fidelity Select Portfolio's (File No. 2-69972) Post-Effective Amendment No. 54. (b) The Fee Deferrral Plan for Non-Interested Person Directors and Trustees of the Fidelity Funds, effective as of December 1, 1995, is incorporated herein by reference to Exhibit 7(b) of Fidelity School Street Trust's (File No. 2-57167) Post-Effective Amendment No. 47. (8)(a) Custodian Agreement, Appendix A, and Appendix C, dated August 1, 1994, between The Chase Manhattan Bank, N.A. and Fidelity Investment Trust on behalf of Fidelity Diversified Global Fund, Fidelity Diversified International Fund, Fidelity Emerging Markets Fund, Fidelity Europe Capital Appreciation Fund, Fidelity Europe Fund, Fidelity Global Bond Fund, Fidelity International Growth & Income Fund, Fidelity International Value Fund, Fidelity Japan Fund, Fidelity New Markets Income Fund, Fidelity Overseas Fund, Fidelity Pacific Basin Fund, Fidelity Southeast Asia Fund, and Fidelity Worldwide Fund is incorporated herein by reference to Exhibit 8(a) of Post-Effective Amendment No. 59. (8)(b) Appendix B, dated September 14, 1995, to the Custodian Agreement, dated August 1, 1994, between The Chase Manhattan Bank, N.A. and Fidelity Investment Trust on behalf of Fidelity Diversified Global Fund, Fidelity Diversified International Fund, Fidelity Emerging Markets Fund, Fidelity Europe Capital Appreciation Fund, Fidelity Europe Fund, Fidelity Global Bond Fund, Fidelity International Growth & Income Fund, Fidelity International Value Fund, Fidelity Japan Fund, Fidelity New Markets Income Fund, Fidelity Overseas Fund, Fidelity Pacific Basin Fund, Fidelity Southeast Asia Fund, and Fidelity Worldwide Fund is incorporated herein by reference to Exhibit 8(b) of Fidelity Charles Street Trust's Post-Effective Amendment No. 54 (File No. 2-73133). (8)(c) Custodian Agreement and Appendix C, dated September 1, 1994, between Brown Brothers Harriman & Company and Fidelity Investment Trust on behalf of Fidelity France Fund, Fidelity Germany Fund, Fidelity Japan Small Companies Fund, Fidelity United Kingdom Fund, Fidelity Hong Kong and China Fund, Fidelity Nordic Fund, Fidelity Canada Fund, Fidelity Latin America Fund, and Fidelity Short-Term World Income Fund is incorporated herein by reference to Exhibit 8(a) of Fidelity Commonwealth Trust's Post-Effective Amendment No. 56 (File No. 2-52322). (8)(d) Appendix A, dated January 18, 1996, to the Custodian Agreement, dated September 1, 1994, between Brown Brothers Harriman & Company and Fidelity Investment Trust on behalf of Fidelity France Fund, Fidelity Germany Fund, Fidelity Japan Small Companies Fund, Fidelity United Kingdom Fund, Fidelity Hong Kong and China Fund, Fidelity Nordic Fund, Fidelity Canada Fund, Fidelity Latin America Fund, and Fidelity Short-Term World Income Fund is incorporated herein by reference to Exhibit 8(d) of Post-Effective Amendment No. 65. (8)(e) Appendix B, dated September 14, 1995, to the Custodian Agreement, dated September 1, 1994, between Brown Brothers Harriman & Company and Fidelity Investment Trust on behalf of Fidelity France Fund, Fidelity Germany Fund, Fidelity Japan Small Companies Fund, Fidelity United Kingdom Fund, Fidelity Hong Kong and China Fund, Fidelity Nordic Fund, Fidelity Canada Fund, Fidelity Latin America Fund, and Fidelity Short-Term World Income Fund is incorporated herein by reference to Exhibit 8(b) of Fidelity Capital Trust's Post-Effective Amendment No. 63 (File No. 2-61760). (8)(f) Fidelity Group Repo Custodian Agreement among The Bank of New York, J. P. Morgan Securities, Inc., and the Registrant, dated February 12, 1996, is incorporated herein by reference to Exhibit 8(d) of Fidelity Institutional Cash Portfolios' (File No. 2-74808) Post-Effective Amendment No. 31. (8)(g) Schedule 1 to the Fidelity Group Repo Custodian Agreement between The Bank of New York and the Registrant, dated February 12, 1996, is incorporated herein by reference to Exhibit 8(e) of Fidelity Institutional Cash Portfolios' (File No. 2-74808) Post-Effective Amendment No. 31. (8)(h) Fidelity Group Repo Custodian Agreement among Chemical Bank, Greenwich Capital Markets, Inc., and the Registrant, dated November 13, 1995, is incorporated herein by reference to Exhibit 8(f) of Fidelity Institutional Cash Portfolios' (File No. 2-74808) Post-Effective Amendment No. 31. (8)(i) Schedule 1 to the Fidelity Group Repo Custodian Agreement between Chemical Bank and the Registrant, dated November 13, 1995, is incorporated herein by reference to Exhibit 8(g) of Fidelity Institutional Cash Portfolios' (File No. 2-74808) Post-Effective Amendment No. 31. (8)(j) Joint Trading Account Custody Agreement between The Bank of New York and Fidelity Investment Trust on behalf of Fidelity Canada Fund, Fidelity Diversified International Fund, Fidelity Emerging Markets Fund, Fidelity Europe Fund, Fidleity Europe Capital Appreciation Fund, Fidelity Global Bond Fund, Fidelity International Growth & Income Fund, Fidelity International Value Fund, Fidelity Japan Fund, Fidelity Latin America Fund, Fidelity New Markets Income Fund, Fidelity Overseas Fund, Fidelity Pacific Basin Fund, Fidelity Short-Term World Income Fund, Fidelity Southeast Asia Fund and Fidelity Worldwide Fund, dated May 11, 1995, is incorporated herein by reference to Exhibit 8(h) of Fidelity Institutional Cash Portfolios' (File No. 2-74808) Post-Effective Amendment No. 31. (8)(k) First Amendment to Joint Trading Account Custody Agreement between The Bank of New York and Fidelity Investment Trust on behalf of Fidelity Canada Fund, Fidelity Diversified International Fund, Fidelity Emerging Markets Fund, Fidelity Europe Fund, Fidleity Europe Capital Appreciation Fund, Fidelity Global Bond Fund, Fidelity International Growth & Income Fund, Fidelity International Value Fund, Fidelity Japan Fund, Fidelity Latin America Fund, Fidelity New Markets Income Fund, Fidelity Overseas Fund, Fidelity Pacific Basin Fund, Fidelity Short-Term World Income Fund, Fidelity Southeast Asia Fund and Fidelity Worldwide Fund, dated July 14, 1995, is incorporated herein by reference to Exhibit 8(i) of Fidelity Institutional Cash Portfolios' (File No. 2-74808) Post-Effective Amendment No. 31. (9) Not applicable. (10) Not applicable. (11) Not applicable. (12) Not applicable. (13) Not applicable. (14) (a) Fidelity Individual Retirement Account Custodial Agreement and Disclosure Statement, as currently in effect, is incorporated herein by reference to Exhibit 14(a) of Fidelity Union Street Trust's (File No. 2-50318) Post-Effective Amendment No. 87. (b) Fidelity Institutional Individual Retirement Account Custodial Agreement and Disclosure Statement, as currently in effect, is incorporated herein by reference to Exhibit 14(d) of Fidelity Union Street Trust's (File No. 2-50318) Post-Effective Amendment No. 87. (c) National Financial Services Corporation Individual Retirement Account Custodial Agreement and Disclosure Statement, as currently in effect, is incorporated herein by reference to Exhibit 14(h) of Fidelity Union Street Trust's (File No. 2-50318) Post-Effective Amendment No. 87. (d) Fidelity Portfolio Advisory Services Individual Retirement Account Custodial Agreement and Disclosure Statement, as currently in effect, is incorporated herein by reference to Exhibit 14(i) of Fidelity Union Street Trust's (File No. 2-50318) Post-Effective Amendment No. 87. (e) Fidelity 403(b)(7) Custodial Account Agreement, as currently in effect, is incorporated herein by reference to Exhibit 14(e) of Fidelity Union Street Trust's (File No. 2-50318) Post-Effective Amendment No. 87. (f) National Financial Services Corporation Defined Contribution Retirement Plan and Trust Agreement, as currently in effect, is incorporated herein by reference to Exhibit 14(k) of Fidelity Union Street Trust's (File No. 2-50318) Post-Effective Amendment No. 87. (g) The CORPORATEplan for Retirement Profit Sharing/401K Plan, as currently in effect, is incorporated herein by reference to Exhibit 14(l) of Fidelity Union Street Trust's (File No. 2-50318) Post-Effective Amendment No. 87. (h) The CORPORATEplan for Retirement Money Purchase Pension Plan, as currently in effect, is incorporated herein by reference to Exhibit 14(m) of Fidelity Union Street Trust's (File No. 2-50318) Post-Effective Amendment No. 87. (i) Fidelity Investments Section 403(b)(7) Individual Custodial Account Agreement and Disclosure Statement, as currently in effect, is incorporated herein by reference to Exhibit 14(f) of Fidelity Commonwealth Trust's (File No. 2-52322) Post Effective Amendment No. 57. (j) Plymouth Investments Defined Contribution Retirement Plan and Trust Agreement, as currently in effect, is incorporated herein by reference to Exhibit 14(o) of Fidelity Commonwealth Trust's (File No. 2-52322) Post Effective Amendment No. 57. (k) The Fidelity Prototype Defined Benefit Pension Plan and Trust Basic Plan Document and Adoption Agreement, as currently in effect, is incorporated herein by reference to Exhibit 14(d) of Fidelity Securities Fund's (File No. 2-93601) Post Effective Amendment No. 33. (l) The Institutional Prototype Plan Basic Plan Document, Standardized Adoption Agreement, and Non-Standardized Adoption Agreement, as currently in effect, is incorporated herein by reference to Exhibit 14(o) of Fidelity Securities Fund's (File No. 2-93601) Post Effective Amendment No. 33. (m) The CORPORATEplan for Retirement 100SM Profit Sharing/401(k) Basic Plan Document, Standardized Adoption Agreement, and Non-Standardized Adoption Agreement, as currently in effect, is incorporated herein by reference to Exhibit 14(f) of Fidelity Securities Fund's (File No. 2-93601) Post Effective Amendment No. 33. (n) The Fidelity Investments 401(a) Prototype Plan for Tax-Exempt Employers Basic Plan Document, Standardized Profit Sharing Plan Adoption Agreement, Non-Standardized Discretionary Contribution Plan No. 002 Adoption Agreement, and Non-Standardized Discretionary Contribution Plan No. 003 Adoption Agreement, as currently in effect, is incorporated herein by reference to Exhibit 14(g) of Fidelity Securities Fund's (File No. 2-93601) Post Effective Amendment No. 33. (o) Fidelity Investments 403(b) Sample Plan Basic Plan Document and Adoption Agreement, as currently in effect, is incorporated herein by reference to Exhibit 14(p) of Fidelity Securities Fund's (File No. 2-93601) Post Effective Amendment No. 33. (p) Fidelity Defined Contribution Retirement Plan and Trust Agreement, as currently in effect, is incorporated herein by reference to Exhibit 14(c) of Fidelity Securities Fund's (File No. 2-93601) Post Effective Amendment No. 33. (15) (a) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity Global Bond Fund is incorporated herein as by reference to Exhibit 15(a) to Post-Effective Amendment No. 58. (b) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity Short-Term World Income Fund is incorporated herein by reference to Exhibit 15(b) to Post-Effective Amendment No. 58. (c) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity New Markets Income Fund is incorporated herein by reference to Exhibit 15(c) to Post-Effective Amendment No. 58. (16) (a) Schedule for computation of total return calculations for Fidelity Canada Fund is filed herein as Exhibit 16(a). (b) Schedule for computation of moving averages is incorporated herein by reference to Exhibit 16(c) to Post Effective Amendment No. 53. (17) Financial Data Schedules are filed herein as Exhibit 27. (18) Not applicable. Item 25. Persons Controlled by or Under Common Control with Registrant The Board of Trustees of Registrant is the same as the Board of Trustees of other funds advised by FMR, each of which has Fidelity Management & Research Company as its investment adviser. In addition, the officers of these funds are substantially identical. Nonetheless, Registrant takes the position that it is not under common control with these other funds since the power residing in the respective boards and officers arises as the result of an official position with the respective funds. Item 26. Number of Holders of Securities: April 30, 1996 Title of Class: Shares of Beneficial Interest Name of Series Number of Record Holders Fidelity Overseas Fund 618,498 Fidelity Europe Fund 63,863 Fidelity Pacific Basin Fund 91,935 Fidelity International Growth & Income Fund 168,967 Fidelity International Value Fund 19,725 Fidelity Global Bond Fund 19,445 Fidelity Canada Fund 17,223 Fidelity Worldwide Fund 132,777 Fidelity Emerging Markets Fund 140,315 Fidelity New Markets Income Fund 13,042 Fidelity Short-Term World Income Fund 7,074 Fidelity Diversified International Fund 46,333 Fidelity Japan Fund 38,613 Fidelity Latin America Fund 69,144 Fidelity Southeast Asia Fund 81,266 Fidelity Europe Capital Appreciation Fund 16,488 Fidelity France Fund 725 Fidelity Germany Fund 792 Fidelity United Kingdom Fund 225 Fidelity Hong Kong and China Fund 8,320 Fidelity Japan Small Companies Fund 11,983 Fidelity Nordic Fund 1,052 Item 27. Indemnification Article XI, Section 2 of the Declaration of Trust sets forth the reasonable and fair means for determining whether indemnification shall be provided to any past or present Trustee or officer. It states that the Registrant shall indemnify any present or past Trustee or officer to the fullest extent permitted by law against liability and all expenses reasonably incurred by him in connection with any claim, action, suit, or proceeding in which he is involved by virtue of his service as a Trustee, an officer, or both. Additionally, amounts paid or incurred in settlement of such matters are covered by this indemnification. Indemnification will not be provided in certain circumstances, however. These include instances of willful misfeasance, bad faith, gross negligence, and reckless disregard of the duties involved in the conduct of the particular office involved. Pursuant to Section 11 of the Distribution Agreement, the Registrant agrees to indemnify and hold harmless the Distributor and each of its directors and officers and each person, if any, who controls the Distributor within the meaning of Section 15 of the 1933 Act against any loss, liability, claim, damages or expense arising by reason of any person acquiring any shares, based upon the ground that the registration statement, Prospectus, Statement of Additional Information, shareholder reports or other information filed or made public by the Registrant included a materially misleading statement or omission. However, the Registrant does not agree to indemnify the Distributor or hold it harmless to the extent that the statement or omission was made in reliance upon, and in conformity with, information furnished to the Registrant by or on behalf of the Distributor. The Registrant does not agree to indemnify the parties against any liability to which they would be subject by reason of willful misfeasance, bad faith, gross negligence, and reckless disregard of the obligations and duties under the Distribution Agreement. Pursuant to the agreement by which Fidelity Service Company ("Service") is appointed sub-transfer agent, the Transfer Agent agrees to indemnify Service for its losses, claims, damages, liabilities and expenses to the extent the Transfer Agent is entitled to and receives indemnification from the Registrant for the same events. Under the Transfer Agency Agreement, the Registrant agrees to indemnify and hold the Transfer Agent harmless against any losses, claims, damages, liabilities, or expenses resulting from: (1) any claim, demand, action or suit brought by any person other than the Registrant, which names the Transfer Agent and/or the Registrant as a party and is not based on and does not result from the Transfer Agent's willful misfeasance, bad faith, negligence or reckless disregard of its duties, and arises out of or in connection with the Transfer Agent's performance under the Transfer Agency Agreement; or (2) any claim, demand, action or suit (except to the extent contributed to by the Transfer Agent's willful misfeasance, bad faith, negligence or reckless disregard of its duties) which results from the negligence of the Registrant, or from the Transfer Agent's acting upon any instruction(s) reasonably believed by it to have been executed or communicated by any person duly authorized by the Registrant, or as a result of the Transfer Agent's acting in reliance upon advice reasonably believed by the Transfer Agent to have been given by counsel for the Registrant, or as a result of the Transfer Agent's acting in reliance upon any instrument or stock certificate reasonably believed by it to have been genuine and signed, countersigned or executed by the proper person. Item 28. Business and Other Connections of Investment Adviser (1) FIDELITY MANAGEMENT & RESEARCH COMPANY FMR serves as investment adviser to a number of other investment companies. The directors and officers of the Adviser have held, during the past two fiscal years, the following positions of a substantial nature.
Edward C. Johnson 3d Chairman of the Executive Committee of FMR; President and Chief Executive Officer of FMR Corp.; Chairman of the Board and a Director of FMR, FMR Corp., FMR Texas Inc., Fidelity Management & Research (U.K.) Inc., and Fidelity Management & Research (Far East) Inc.; President and Trustee of funds advised by FMR. J. Gary Burkhead President of FMR; Managing Director of FMR Corp.; President and a Director of FMR Texas Inc., Fidelity Management & Research (U.K.) Inc., and Fidelity Management & Research (Far East) Inc.; Senior Vice President and Trustee of funds advised by FMR. Peter S. Lynch Vice Chairman and Director of FMR. Robert Beckwitt Vice President of FMR and of funds advised by FMR. David Breazzano Vice President of FMR (1993) and of a fund advised by FMR. Stephan Campbell Vice President of FMR (1993). Dwight Churchill Vice President of FMR (1993). William Danoff Vice President of FMR (1993) and of a fund advised by FMR. Scott DeSano Vice President of FMR (1993). Penelope Dobkin Vice President of FMR and of a fund advised by FMR. Larry Domash Vice President of FMR (1993). George Domolky Vice President of FMR (1993) and of a fund advised by FMR. Robert K. Duby Vice President of FMR. Margaret L. Eagle Vice President of FMR and of a fund advised by FMR. Kathryn L. Eklund Vice President of FMR. Richard B. Fentin Senior Vice President of FMR (1993) and of a fund advised by FMR. Daniel R. Frank Vice President of FMR and of funds advised by FMR. Michael S. Gray Vice President of FMR and of funds advised by FMR. Lawrence Greenberg Vice President of FMR (1993). Barry A. Greenfield Vice President of FMR and of a fund advised by FMR. William J. Hayes Senior Vice President of FMR; Equity Division Leader. Robert Haber Vice President of FMR and of funds advised by FMR. Richard C. Habermann Senior Vice President of FMR (1993). Daniel Harmetz Vice President of FMR and of a fund advised by FMR. Ellen S. Heller Vice President of FMR. John Hickling Vice President of FMR (1993) and of funds advised by FMR. Robert F. Hill Vice President of FMR; Director of Technical Research. Curtis Hollingsworth Vice President of FMR (1993). Stephen P. Jonas Treasurer and Vice President of FMR (1993)); Treasurer of FMR Texas Inc. (1993), Fidelity Management & Research (U.K.) Inc. (1993), and Fidelity Management & Research (Far East) Inc. (1993). David B. Jones Vice President of FMR (1993). Steven Kaye Vice President of FMR (1993) and of a fund advised by FMR. Frank Knox Vice President of FMR (1993). Robert A. Lawrence Senior Vice President of FMR (1993); High Income Division Leader. Alan Leifer Vice President of FMR and of a fund advised by FMR. Harris Leviton Vice President of FMR (1993) and of a fund advised by FMR. Bradford E. Lewis Vice President of FMR and of funds advised by FMR. Malcolm W. MacNaught III Vice President of FMR (1993). Robert H. Morrison Vice President of FMR; Director of Equity Trading. David Murphy Vice President of FMR and of funds advised by FMR. Andrew Offit Vice President of FMR (1993). Judy Pagliuca Vice President of FMR (1993). Jacques Perold Vice President of FMR. Anne Punzak Vice President of FMR and of funds advised by FMR. Lee Sandwen Vice President of FMR (1993). Patricia A. Satterthwaite Vice President of FMR (1993) and of a fund advised by FMR. Thomas T. Soviero Vice President of FMR (1993). Richard Spillane Vice President of FMR; Senior Vice President and Director of Operations and Compliance of FMR U.K. (1993). Robert E. Stansky Senior Vice President of FMR (1993) and of funds advised by FMR. Gary L. Swayze Vice President of FMR and of funds advised by FMR; Tax-Free Fixed-Income Group Leader. Thomas Sweeney Vice President of FMR (1993). Beth F. Terrana Senior Vice President of FMR (1993) and of funds advised by FMR. Joel Tillinghast Vice President of FMR (1993) and of a fund advised by FMR. Robert Tucket Vice President of FMR (1993). George A. Vanderheiden Senior Vice President of FMR; Vice President of funds advised by FMR; Growth Group Leader. Jeffrey Vinik Senior Vice President of FMR (1993) and of a fund advised by FMR. Arthur S. Loring Senior Vice President (1993), Clerk, and General Counsel of FMR; Vice President, Legal of FMR Corp.; Secretary of funds advised by FMR.
(2) FIDELITY MANAGEMENT & RESEARCH (U.K.) INC. (FMR U.K.) FMR U.K. provides investment advisory services to Fidelity Management & Research Company and Fidelity Management Trust Company. The directors and officers of the Sub-Adviser have held the following positions of a substantial nature during the past two fiscal years. Edward C. Johnson 3d Chairman and Director of FMR U.K.; Chairman of the Executive Committee of FMR; Chief Executive Officer of FMR Corp.; Chairman of the Board and a Director of FMR, FMR Corp., FMR Texas Inc., and Fidelity Management & Research (Far East) Inc.; President and Trustee of funds advised by FMR. J. Gary Burkhead President and Director of FMR U.K.; President of FMR; Managing Director of FMR Corp.; President and a Director of FMR Texas Inc. and Fidelity Management & Research (Far East) Inc.; Senior Vice President and Trustee of funds advised by FMR. Richard C. Habermann Senior Vice President of FMR U.K.; Senior Vice President of Fidelity Management & Research (Far East) Inc.; Director of Worldwide Research of FMR. Richard Spillane Senior Vice President and Director of Operations and Compliance of FMR U.K. (1993). Stephen P. Jonas Treasurer of FMR U.K. (1993), Fidelity Management & Research (Far East) Inc. (1993), and FMR Texas Inc. (1993); Treasurer and Vice President of FMR (1993). David Weinstein Clerk of FMR U.K.; Clerk of Fidelity Management & Research (Far East) Inc.; Secretary of FMR Texas Inc. (3) FIDELITY MANAGEMENT & RESEARCH (FAR EAST) INC. (FMR Far East) FMR Far East provides investment advisory services to Fidelity Management & Research Company and Fidelity Management Trust Company. The directors and officers of the Sub-Adviser have held the following positions of a substantial nature during the past two fiscal years. Edward C. Johnson 3d Chairman and Director of FMR Far East; Chairman of the Executive Committee of FMR; Chief Executive Officer of FMR Corp.; Chairman of the Board and a Director of FMR, FMR Corp., FMR Texas Inc. and Fidelity Management & Research (U.K.) Inc.; President and Trustee of funds advised by FMR. J. Gary Burkhead President and Director of FMR Far East; President of FMR; Managing Director of FMR Corp.; President and a Director of FMR Texas Inc. and Fidelity Management & Research (U.K.) Inc.; Senior Vice President and Trustee of funds advised by FMR. Richard C. Habermann Senior Vice President of FMR Far East; Senior Vice President of Fidelity Management & Research (U.K.) Inc.; Director of Worldwide Research of FMR. William R. Ebsworth Vice President of FMR Far East. Bill Wilder Vice President of FMR Far East (1993). Stephen P. Jonas Treasurer of FMR Far East (1993), Fidelity Management & Research (U.K.) Inc. (1993), and FMR Texas Inc. (1993); Treasurer and Vice President of FMR (1993). David C. Weinstein Clerk of FMR Far East; Clerk of Fidelity Management & Research (U.K.) Inc.; Secretary of FMR Texas Inc. (5) FIDELITY INTERNATIONAL INVESTMENT ADVISORS Pembroke Hall, 42 Crow Lane, Pembroke, Bermuda The directors and officers of Fidelity International Investment Advisors (FIIA) have held, during the past two fiscal years, the following positions of a substantial nature. Anthony J. Bolton Director of FIIA and FIIAL (U.K.); Director of Fidelity International Management Holdings Limited. Martin P. Cambridge Director of FIIA and FIIAL (U.K.); Chief Financial Officer of Fidelity International Ltd. and Fidelity Investment Services Ltd. Charles T. Collis Director of FIIA; Partner in Conyers, Dill & Pearman, Hamilton, Bermuda; Secretary to many companies in the Fidelity international group of companies. William R. Ebsworth Director of FIIA. Brett P. Goodin Director, Vice President, and Secretary of FIIA (1994). Terrence V. Richards Assistant Secretary of FIIA (1994). David J. Saul Director and President of FIIA; Director of Fidelity International Limited. (6) FIDELITY INTERNATIONAL INVESTMENT ADVISORS (U.K.) LIMITED 27-28 Lovat Lane, London, England The directors and officers of Fidelity International Investment Advisors (U.K.) Limited (FIIAL (U.K.)) have held, during the past two fiscal years, the following positions of a substantial nature. Anthony J. Bolton Director of FIIAL (U.K.) and FIIA; Director of Fidelity International Management Holdings Limited. Martin P. Cambridge Director and Secretary of FIIAL (U.K.) and FIIA; Chief Financial Officer of Fidelity Investments Japan Limited, Fidelity International Ltd., and Fidelity Investment Services Ltd. C. Bruce Johnstone Director of FIIAL (U.K.). (7) FIDELITY INVESTMENTS JAPAN LIMITED Shiroyama JT Mori Bldg., 3-1, Toranomon 4-chome, Minato-ku, Tokyo 105, Japan The directors and officers of Fidelity Investments Japan Limited have held, during the past two fiscal years, the following positions of a substantial nature. Edward C. Johnson 3d Chairman & Representative Director of Fidelity Investments Japan Limited, Chairman and Director of FMR Far East, Chairman of the Executive Committee of FMR, Chief Executive Officer of FMR Corp., Chairman of the Board and a Director of FMR, FMR Corp., FMR Texas Inc. and Fidelity Management & Research (U.K.) Inc., President and Trustee of funds advised by FMR. Yasuo Kuramoto Vice Chairman & Representative Director & Portfolio Manager of Fidelity Investments Japan Limited, Chairman & Representative Director & Portfolio Adviser of Fidelity International Investment Advisors (Japan) Limited (1991-1993) Yasukazu Akamatsu President & Representative Director of Fidelity Investments Japan Limited, Portfolio Manager of Fidelity Investments Japan Limited (1993). Hiroshi Yamashita Managing Director & Portfolio Manager of Fidelity Investments Japan Limited. Nobuhide Kamiyama Director & General Manager of Planning and Marketing of Fidelity Investments Japan Limited. Arthur M. Jesson Director & General Manager of Information Systems and Trading of Fidelity Investments Japan Limited. Martin P. Cambridge Director of Fidelity Investments Japan Limited, Chief Financial Officer of Fidelity International Limited, Financial Officer of Fidelity Investments International, Director of Fidelity International Investment Advisors, Director of Fidelity Investments (Taiwan) Limited, Director & Secretary of Fidelity International Investment Advisors (U.K.) Limited. Noboru Kawai Director & General Manager of Administration of Fidelity Investments Japan Limited. Dan H. Blanks Director of Fidelity Investments Japan Limited, President of Fidelity International Investments Limited, Director of Fidelity International Limited (1993). Shinobu Kasaya Portfolio Manager of Fidelity Investments Japan Limited. Ken-ichi Mizushita Portfolio Manager of Fidelity Investments Japan Limited. Edward S.J. Bang Portfolio Manager of Fidelity Investments Japan Limited (1994), Senior Analyst of Fidelity Management & Research (Far East) Inc. (1991-1994). Shigeki Makino Portfolio Manager of Fidelity Investments Japan Limited (1994), Senior Analyst of Fidelity Management & Research (Far East) Inc. (1991-1994). Asako Kibe Portfolio Manager of Fidelity Investments Japan Limited (1995), Senior Analyst of Fidelity Management & Research (Far East) Inc. (1991-1995). Item 29. Principal Underwriters (a) Fidelity Distributors Corporation (FDC) acts as distributor for most funds advised by FMR. (b) Name and Principal Positions and Offices Positions and Offices Business Address* With Underwriter With Registrant Edward C. Johnson 3d Director Trustee and President Michael Mlinac Director None Mark Peterson Director None Neal Litvak President None Arthur S. Loring Vice President and Clerk Secretary Caron Ketchum Treasurer and Controller None Gary Greenstein Assistant Treasurer None Jay Freedman Assistant Clerk None Linda Holland Compliance Officer None * 82 Devonshire Street, Boston, MA (c) Not applicable. Item 30. Location of Accounts and Records All accounts, books, and other documents required to be maintained by Section 31a of the 1940 Act and the Rules promulgated thereunder are maintained by Fidelity Management & Research Company or Fidelity Service Co., 82 Devonshire Street, Boston, MA 02109, or the funds' respective custodians: The Chase Manhattan Bank, 1211 Avenue of the Americas, New York, N.Y. and Brown Brothers Harriman & Co., 40 Water Street, Boston, MA. Item 31. Management Services Not applicable. Item 32. Undertakings The Registrant on behalf of Fidelity Canada Fund, Fidelity Diversified International Fund, Fidelity Emerging Markets Fund, Fidelity Europe Fund, Fidelity Europe Capital Appreciation Fund, Fidelity France Fund, Fidelity Germany Fund, Fidelity Global Bond Fund, Fidelity Hong Kong and China Fund, Fidelity International Growth & Income Fund, Fidelity International Value Fund, Fidleity Japan Fund, Fidelity Japan Small Companies Fund, Fidelity Latin America Fund, Fidelity New Markets Income Fund, Fidelity Nordic Fund, Fidelity Overseas Fund, Fidelity Pacific Basin Fund, Fidelity Short-Term World Income Fund, Fidelity Southeast Asia Fund, Fidelity United Kingdom Fund, and Fidelity Worldwide Fund, provided the information required by Item 5A is contained in the annual report, undertakes to furnish each person to whom a prospectus has been delivered, upon their request and without charge, a copy of the Registrant's latest annual report to shareholders. SIGNATURES Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets all of the requirements for the effectiveness of this Registration Statement pursuant to Rule 485(b) under the Securities Act of 1933 and has duly caused this Post-Effective Amendment No. 66 to the Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Boston, and the Commonwealth of Massachusetts, on the 19 day of June 1996. Fidelity Investment Trust By /s/Edward C. Johnson 3d (dagger) Edward C. Johnson 3d, President Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed below by the following persons in the capacities and on the dates indicated. (Signature) (Title) (Date)
/s/Edward C. Johnson 3d(dagger) President and Trustee June 19, 1996 Edward C. Johnson 3d (Principal Executive Officer)
/s/Kenneth A. Rathgeber Treasurer June 19, 1996 Kenneth A. Rathgeber /s/J. Gary Burkhead Trustee June 19, 1996 J. Gary Burkhead /s/Ralph F. Cox * Trustee June 19, 1996 Ralph F. Cox /s/Phyllis Burke Davis * Trustee June 19, 1996 Phyllis Burke Davis /s/Richard J. Flynn * Trustee June 19, 1996 Richard J. Flynn /s/E. Bradley Jones * Trustee June 19, 1996 E. Bradley Jones /s/Donald J. Kirk * Trustee June 19, 1996 Donald J. Kirk /s/Peter S. Lynch * Trustee June 19, 1996 Peter S. Lynch /s/Edward H. Malone * Trustee June 19, 1996 Edward H. Malone /s/Marvin L. Mann_____* Trustee June 19, 1996 Marvin L. Mann /s/Gerald C. McDonough* Trustee June 19, 1996 Gerald C. McDonough /s/Thomas R. Williams * Trustee June 19, 1996 Thomas R. Williams (dagger) Signatures affixed by J. Gary Burkhead pursuant to a power of attorney dated December 15, 1994 and filed herewith. * Signature affixed by Robert C. Hacker pursuant to a power of attorney dated December 15, 1994 and filed herewith. POWER OF ATTORNEY We, the undersigned Directors, Trustees or General Partners, as the case may be, of the following investment companies:
Fidelity Advisor Annuity Fund Fidelity Income Fund Fidelity Advisor Series I Fidelity Institutional Trust Fidelity Advisor Series II Fidelity Investment Trust Fidelity Advisor Series III Fidelity Magellan Fund Fidelity Advisor Series IV Fidelity Massachusetts Municipal Trust Fidelity Advisor Series V Fidelity Mt. Vernon Street Trust Fidelity Advisor Series VI Fidelity Municipal Trust Fidelity Advisor Series VII Fidelity New York Municipal Trust Fidelity Advisor Series VIII Fidelity Puritan Trust Fidelity California Municipal Trust Fidelity School Street Trust Fidelity Capital Trust Fidelity Securities Fund Fidelity Charles Street Trust Fidelity Select Portfolios Fidelity Commonwealth Trust Fidelity Sterling Performance Portfolio, L.P. Fidelity Congress Street Fund Fidelity Summer Street Trust Fidelity Contrafund Fidelity Trend Fund Fidelity Corporate Trust Fidelity U.S. Investments-Bond Fund, L.P. Fidelity Court Street Trust Fidelity U.S. Investments-Government Securities Fidelity Deutsche Mark Performance Fund, L.P. Portfolio, L.P. Fidelity Union Street Trust Fidelity Devonshire Trust Fidelity Yen Performance Portfolio, L.P. Fidelity Exchange Fund Spartan U.S. Treasury Money Market Fidelity Financial Trust Fund Fidelity Fixed-Income Trust Variable Insurance Products Fund Fidelity Government Securities Fund Variable Insurance Products Fund II Fidelity Hastings Street Trust
plus any other investment company for which Fidelity Management & Research Company acts as investment adviser and for which the undersigned individuals serve as Board Members (collectively, the "Funds"), hereby severally constitute and appoint Arthur J. Brown, Arthur C. Delibert, Robert C. Hacker, Richard M. Phillips, Dana L. Platt and Stephanie A. Djinis, each of them singly, our true and lawful attorneys-in-fact, with full power of substitution, and with full power to each of them, to sign for us and in our names in the appropriate capacities, all Pre-Effective Amendments to any Registration Statements of the Funds, any and all subsequent Post-Effective Amendments to said Registration Statements, any Registration Statements on Form N-14, and any supplements or other instruments in connection therewith, and generally to do all such things in our names and behalf in connection therewith as said attorneys-in-fact deem necessary or appropriate, to comply with the provisions of the Securities Act of 1933 and Investment Company Act of 1940, and all related requirements of the Securities and Exchange Commission, hereby ratifying and confirming all that said attorneys-in-fact or their substitutes may do or cause to be done by virtue hereof. WITNESS our hands on this fifteenth day of December, 1994. /s/Edward C. Johnson 3d /s/Donald J. Kirk Edward C. Johnson 3d Donald J. Kirk /s/J. Gary Burkhead /s/Peter S. Lynch J. Gary Burkhead Peter S. Lynch /s/Ralph F. Cox /s/Marvin L. Mann Ralph F. Cox Marvin L. Mann /s/Phyllis Burke Davis /s/Edward H. Malone Phyllis Burke Davis Edward H. Malone /s/Richard J. Flynn /s/Gerald C. McDonough Richard J. Flynn Gerald C. McDonough /s/E. Bradley Jones /s/Thomas R. Williams E. Bradley Jones Thomas R. Williams POWER OF ATTORNEY I, the undersigned President and Director, Trustee or General Partner, as the case may be, of the following investment companies:
Fidelity Advisor Annuity Fund Fidelity Institutional Trust Fidelity Advisor Series I Fidelity Investment Trust Fidelity Advisor Series II Fidelity Magellan Fund Fidelity Advisor Series III Fidelity Massachusetts Municipal Trust Fidelity Advisor Series IV Fidelity Money Market Trust Fidelity Advisor Series V Fidelity Mt. Vernon Street Trust Fidelity Advisor Series VI Fidelity Municipal Trust Fidelity Advisor Series VII Fidelity New York Municipal Trust Fidelity Advisor Series VIII Fidelity Puritan Trust Fidelity California Municipal Trust Fidelity School Street Trust Fidelity Capital Trust Fidelity Securities Fund Fidelity Charles Street Trust Fidelity Select Portfolios Fidelity Commonwealth Trust Fidelity Sterling Performance Portfolio, L.P. Fidelity Congress Street Fund Fidelity Summer Street Trust Fidelity Contrafund Fidelity Trend Fund Fidelity Corporate Trust Fidelity U.S. Investments-Bond Fund, L.P. Fidelity Court Street Trust Fidelity U.S. Investments-Government Securities Fidelity Destiny Portfolios Fund, L.P. Fidelity Deutsche Mark Performance Fidelity Union Street Trust Portfolio, L.P. Fidelity Yen Performance Portfolio, L.P. Fidelity Devonshire Trust Spartan U.S. Treasury Money Market Fidelity Exchange Fund Fund Fidelity Financial Trust Variable Insurance Products Fund Fidelity Fixed-Income Trust Variable Insurance Products Fund II Fidelity Government Securities Fund Fidelity Hastings Street Trust Fidelity Income Fund
plus any other investment company for which Fidelity Management & Research Company acts as investment adviser and for which the undersigned individual serves as President and Board Member (collectively, the "Funds"), hereby severally constitute and appoint J. Gary Burkhead, my true and lawful attorney-in-fact, with full power of substitution, and with full power to sign for me and in my name in the appropriate capacity, all Pre-Effective Amendments to any Registration Statements of the Funds, any and all subsequent Post-Effective Amendments to said Registration Statements, any Registration Statements on Form N-14, and any supplements or other instruments in connection therewith, and generally to do all such things in my name and behalf in connection therewith as said attorney-in-fact deem necessary or appropriate, to comply with the provisions of the Securities Act of 1933 and Investment Company Act of 1940, and all related requirements of the Securities and Exchange Commission. I hereby ratify and confirm all that said attorneys-in-fact or their substitutes may do or cause to be done by virtue hereof. WITNESS my hand on the date set forth below. /s/Edward C. Johnson 3d December 15, 1994 Edward C. Johnson 3d EX-99.B9 2 Exhibit 5(ffff) MANAGEMENT CONTRACT between FIDELITY INVESTMENT TRUST: FIDELITY FRANCE FUND and FIDELITY MANAGEMENT & RESEARCH COMPANY AGREEMENT made this 1st day of November 1995, by and between Fidelity Investment Trust, a Massachusetts business trust which may issue one or more series of shares of beneficial interest (hereinafter called the "Fund"), on behalf of Fidelity France Fund (hereinafter called the "Portfolio"), and Fidelity Management & Research Company, a Massachusetts corporation (hereinafter called the "Adviser") as set forth in its entirety below. 1. (a) Investment Advisory Services. The Adviser undertakes to act as investment adviser of the Portfolio and shall, subject to the supervision of the Fund's Board of Trustees, direct the investments of the Portfolio in accordance with the investment objective, policies and limitations as provided in the Portfolio's Prospectus or other governing instruments, as amended from time to time, the Investment Company Act of 1940 and rules thereunder, as amended from time to time (the "1940 Act"), and such other limitations as the Portfolio may impose by notice in writing to the Adviser. The Adviser shall also furnish for the use of the Portfolio office space and all necessary office facilities, equipment and personnel for servicing the investments of the Portfolio; and shall pay the salaries and fees of all officers of the Fund, of all Trustees of the Fund who are "interested persons" of the Fund or of the Adviser and of all personnel of the Fund or the Adviser performing services relating to research, statistical and investment activities. The Adviser is authorized, in its discretion and without prior consultation with the Portfolio, to buy, sell, lend and otherwise trade in any stocks, bonds and other securities and investment instruments on behalf of the Portfolio. The investment policies and all other actions of the Portfolio are and shall at all times be subject to the control and direction of the Fund's Board of Trustees. (b) Management Services. The Adviser shall perform (or arrange for the performance by its affiliates of) the management and administrative services necessary for the operation of the Fund. The Adviser shall, subject to the supervision of the Board of Trustees, perform various services for the Portfolio, including but not limited to: (i) providing the Portfolio with office space, equipment and facilities (which may be its own) for maintaining its organization; (ii) on behalf of the Portfolio, supervising relations with, and monitoring the performance of, custodians, depositories, transfer and pricing agents, accountants, attorneys, underwriters, brokers and dealers, insurers and other persons in any capacity deemed to be necessary or desirable; (iii) preparing all general shareholder communications, including shareholder reports; (iv) conducting shareholder relations; (v) maintaining the Fund's existence and its records; (vi) during such times as shares are publicly offered, maintaining the registration and qualification of the Portfolio's shares under federal and state law; and (vii) investigating the development of and developing and implementing, if appropriate, management and shareholder services designed to enhance the value or convenience of the Portfolio as an investment vehicle. The Adviser shall also furnish such reports, evaluations, information or analyses to the Fund as the Fund's Board of Trustees may request from time to time or as the Adviser may deem to be desirable. The Adviser shall make recommendations to the Fund's Board of Trustees with respect to Fund policies, and shall carry out such policies as are adopted by the Trustees. The Adviser shall, subject to review by the Board of Trustees, furnish such other services as the Adviser shall from time to time determine to be necessary or useful to perform its obligations under this Contract. (c) The Adviser shall place all orders for the purchase and sale of portfolio securities for the Portfolio's account with brokers or dealers selected by the Adviser, which may include brokers or dealers affiliated with the Adviser. The Adviser shall use its best efforts to seek to execute portfolio transactions at prices which are advantageous to the Portfolio and at commission rates which are reasonable in relation to the benefits received. In selecting brokers or dealers qualified to execute a particular transaction, brokers or dealers may be selected who also provide brokerage and research services (as those terms are defined in Section 28(e) of the Securities Exchange Act of 1934) to the Portfolio and/or the other accounts over which the Adviser or its affiliates exercise investment discretion. The Adviser is authorized to pay a broker or dealer who provides such brokerage and research services a commission for executing a portfolio transaction for the Portfolio which is in excess of the amount of commission another broker or dealer would have charged for effecting that transaction if the Adviser determines in good faith that such amount of commission is reasonable in relation to the value of the brokerage and research services provided by such broker or dealer. This determination may be viewed in terms of either that particular transaction or the overall responsibilities which the Adviser and its affiliates have with respect to accounts over which they exercise investment discretion. The Trustees of the Fund shall periodically review the commissions paid by the Portfolio to determine if the commissions paid over representative periods of time were reasonable in relation to the benefits to the Portfolio. The Adviser shall, in acting hereunder, be an independent contractor. The Adviser shall not be an agent of the Portfolio. 2. It is understood that the Trustees, officers and shareholders of the Fund are or may be or become interested in the Adviser as directors, officers or otherwise and that directors, officers and stockholders of the Adviser are or may be or become similarly interested in the Fund, and that the Adviser may be or become interested in the Fund as a shareholder or otherwise. 3. The Adviser will be compensated on the following basis for the services and facilities to be furnished hereunder. The Adviser shall receive a monthly management fee, payable monthly as soon as practicable after the last day of each month, composed of a Group Fee and an Individual Fund Fee. (a) Group Fee Rate. The Group Fee Rate shall be based upon the monthly average of the net assets of the registered investment companies having Advisory and Service or Management Contracts with the Adviser (computed in the manner set forth in the fund's Declaration of Trust or other organizational document) determined as of the close of business on each business day throughout the month. The Group Fee Rate shall be determined on a cumulative basis pursuant to the following schedule: Average Net Assets Annualized Fee Rate (for each level) 0 - $ 3 billion .5200% 3 - 6 .4900% 6 - 9 .4600% 9 - 12 .4300% 12 - 15 .4000% 15 - 18 .3850% 18 - 21 .3700% 21 - 24 .3600% 24 - 30 .3500% 30 - 36 .3450% 36 - 42 .3400% 42 - 48 .3350% 48 - 66 .3250% 66 - 84 .3200% 84 - 102 .3150% 102 - 138 .3100% 138 - 174 .3050% 174 - 210 .3000% 210 - 246 .2950% 246 - 282 .2900% 282 - 318 .2850% 318 - 354 .2800% 354 - 390 .2750% Over 390 .2700% (b) Individual Fund Fee Rate. The Individual Fund Fee Rate shall be .45%. The sum of the Group Fee Rate, calculated as described above to the nearest millionth, and the Individual Fund Fee Rate shall constitute the Annual Management Fee Rate. One-twelfth of the Annual Management Fee Rate shall be applied to the average of the net assets of the Portfolio (computed in the manner set forth in the Fund's Declaration of Trust or other organizational document) determined as of the close of business on each business day throughout the month. (c) In case of termination of this Contract during any month, the fee for that month shall be reduced proportionately on the basis of the number of business days during which it is in effect, and the fee computed upon the average net assets for the business days it is so in effect for that month. 4. It is understood that the Portfolio will pay all its expenses, which expenses payable by the Portfolio shall include, without limitation, (i) interest and taxes; (ii) brokerage commissions and other costs in connection with the purchase or sale of securities and other investment instruments; (iii) fees and expenses of the Fund's Trustees other than those who are "interested persons" of the Fund or the Adviser; (iv) legal and audit expenses; (v) custodian, registrar and transfer agent fees and expenses; (vi) fees and expenses related to the registration and qualification of the Fund and the Portfolio's shares for distribution under state and federal securities laws; (vii) expenses of printing and mailing reports and notices and proxy material to shareholders of the Portfolio; (viii) all other expenses incidental to holding meetings of the Portfolio's shareholders, including proxy solicitations therefor; (ix) a pro rata share, based on relative net assets of the Portfolio and other registered investment companies having Advisory and Service or Management Contracts with the Adviser, of 50% of insurance premiums for fidelity and other coverage; (x) its proportionate share of association membership dues; (xi) expenses of typesetting for printing Prospectuses and Statements of Additional Information and supplements thereto; (xii) expenses of printing and mailing Prospectuses and Statements of Additional Information and supplements thereto sent to existing shareholders; and (xiii) such non-recurring or extraordinary expenses as may arise, including those relating to actions, suits or proceedings to which the Portfolio is a party and the legal obligation which the Portfolio may have to indemnify the Fund's Trustees and officers with respect thereto. 5. The services of the Adviser to the Portfolio are not to be deemed exclusive, the Adviser being free to render services to others and engage in other activities, provided, however, that such other services and activities do not, during the term of this Contract, interfere, in a material manner, with the Adviser's ability to meet all of its obligations with respect to rendering services to the Portfolio hereunder. In the absence of willful misfeasance, bad faith, gross negligence or reckless disregard of obligations or duties hereunder on the part of the Adviser, the Adviser shall not be subject to liability to the Portfolio or to any shareholder of the Portfolio for any act or omission in the course of, or connected with, rendering services hereunder or for any losses that may be sustained in the purchase, holding or sale of any security or other investment instrument. 6. (a) Subject to prior termination as provided in sub-paragraph (d) of this paragraph 6, this Contract shall continue in force until July 31, 1997 and indefinitely thereafter, but only so long as the continuance after such date shall be specifically approved at least annually by vote of the Trustees of the Fund or by vote of a majority of the outstanding voting securities of the Portfolio. (b) This Contract may be modified by mutual consent, such consent on the part of the Fund to be authorized by vote of a majority of the outstanding voting securities of the Portfolio. (c) In addition to the requirements of sub-paragraphs (a) and (b) of this paragraph 6, the terms of any continuance or modification of this Contract must have been approved by the vote of a majority of those Trustees of the Fund who are not parties to the Contract or interested persons of any such party, cast in person at a meeting called for the purpose of voting on such approval. (d) Either party hereto may, at any time on sixty (60) days' prior written notice to the other, terminate this Contract, without payment of any penalty, by action of its Trustees or Board of Directors, as the case may be, or with respect to the Portfolio by vote of a majority of the outstanding voting securities of the Portfolio. This Contract shall terminate automatically in the event of its assignment. 7. The Adviser is hereby expressly put on notice of the limitation of shareholder liability as set forth in the Fund's Declaration of Trust or other organizational document and agrees that the obligations assumed by the Fund pursuant to this Contract shall be limited in all cases to the Portfolio and its assets, and the Adviser shall not seek satisfaction of any such obligation from the shareholders or any shareholder of the Portfolio or any other Portfolios of the Fund. In addition, the Adviser shall not seek satisfaction of any such obligations from the Trustees or any individual Trustee. The Adviser understands that the rights and obligations of any Portfolio under the Declaration of Trust or other organizational document are separate and distinct from those of any and all other Portfolios. 8. This Agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts, without giving effect to the choice of laws provisions thereof. The terms "vote of a majority of the outstanding voting securities," "assignment," and "interested persons," when used herein, shall have the respective meanings specified in the 1940 Act, as now in effect or as hereafter amended, and subject to such orders as may be granted by the Securities and Exchange Commission. IN WITNESS WHEREOF the parties have caused this instrument to be signed in their behalf by their respective officers thereunto duly authorized, and their respective seals to be hereunto affixed, all as of the date written above. FIDELITY INVESTMENT TRUST on behalf of Fidelity France Fund By /s/ J. Gary Burkhead J. Gary Burkhead Senior Vice President FIDELITY MANAGEMENT & RESEARCH COMPANY By /s/ J. Gary Burkhead J. Gary Burkhead President EX-99.B9 3 Exhibit 5(kkkk) MANAGEMENT CONTRACT between FIDELITY INVESTMENT TRUST: FIDELITY GERMANY FUND and FIDELITY MANAGEMENT & RESEARCH COMPANY AGREEMENT made this 1st day of November 1995, by and between Fidelity Investment Trust, a Massachusetts business trust which may issue one or more series of shares of beneficial interest (hereinafter called the "Fund"), on behalf of Fidelity Germany Fund (hereinafter called the "Portfolio"), and Fidelity Management & Research Company, a Massachusetts corporation (hereinafter called the "Adviser") as set forth in its entirety below. 1. (a) Investment Advisory Services. The Adviser undertakes to act as investment adviser of the Portfolio and shall, subject to the supervision of the Fund's Board of Trustees, direct the investments of the Portfolio in accordance with the investment objective, policies and limitations as provided in the Portfolio's Prospectus or other governing instruments, as amended from time to time, the Investment Company Act of 1940 and rules thereunder, as amended from time to time (the "1940 Act"), and such other limitations as the Portfolio may impose by notice in writing to the Adviser. The Adviser shall also furnish for the use of the Portfolio office space and all necessary office facilities, equipment and personnel for servicing the investments of the Portfolio; and shall pay the salaries and fees of all officers of the Fund, of all Trustees of the Fund who are "interested persons" of the Fund or of the Adviser and of all personnel of the Fund or the Adviser performing services relating to research, statistical and investment activities. The Adviser is authorized, in its discretion and without prior consultation with the Portfolio, to buy, sell, lend and otherwise trade in any stocks, bonds and other securities and investment instruments on behalf of the Portfolio. The investment policies and all other actions of the Portfolio are and shall at all times be subject to the control and direction of the Fund's Board of Trustees. (b) Management Services. The Adviser shall perform (or arrange for the performance by its affiliates of) the management and administrative services necessary for the operation of the Fund. The Adviser shall, subject to the supervision of the Board of Trustees, perform various services for the Portfolio, including but not limited to: (i) providing the Portfolio with office space, equipment and facilities (which may be its own) for maintaining its organization; (ii) on behalf of the Portfolio, supervising relations with, and monitoring the performance of, custodians, depositories, transfer and pricing agents, accountants, attorneys, underwriters, brokers and dealers, insurers and other persons in any capacity deemed to be necessary or desirable; (iii) preparing all general shareholder communications, including shareholder reports; (iv) conducting shareholder relations; (v) maintaining the Fund's existence and its records; (vi) during such times as shares are publicly offered, maintaining the registration and qualification of the Portfolio's shares under federal and state law; and (vii) investigating the development of and developing and implementing, if appropriate, management and shareholder services designed to enhance the value or convenience of the Portfolio as an investment vehicle. The Adviser shall also furnish such reports, evaluations, information or analyses to the Fund as the Fund's Board of Trustees may request from time to time or as the Adviser may deem to be desirable. The Adviser shall make recommendations to the Fund's Board of Trustees with respect to Fund policies, and shall carry out such policies as are adopted by the Trustees. The Adviser shall, subject to review by the Board of Trustees, furnish such other services as the Adviser shall from time to time determine to be necessary or useful to perform its obligations under this Contract. (c) The Adviser shall place all orders for the purchase and sale of portfolio securities for the Portfolio's account with brokers or dealers selected by the Adviser, which may include brokers or dealers affiliated with the Adviser. The Adviser shall use its best efforts to seek to execute portfolio transactions at prices which are advantageous to the Portfolio and at commission rates which are reasonable in relation to the benefits received. In selecting brokers or dealers qualified to execute a particular transaction, brokers or dealers may be selected who also provide brokerage and research services (as those terms are defined in Section 28(e) of the Securities Exchange Act of 1934) to the Portfolio and/or the other accounts over which the Adviser or its affiliates exercise investment discretion. The Adviser is authorized to pay a broker or dealer who provides such brokerage and research services a commission for executing a portfolio transaction for the Portfolio which is in excess of the amount of commission another broker or dealer would have charged for effecting that transaction if the Adviser determines in good faith that such amount of commission is reasonable in relation to the value of the brokerage and research services provided by such broker or dealer. This determination may be viewed in terms of either that particular transaction or the overall responsibilities which the Adviser and its affiliates have with respect to accounts over which they exercise investment discretion. The Trustees of the Fund shall periodically review the commissions paid by the Portfolio to determine if the commissions paid over representative periods of time were reasonable in relation to the benefits to the Portfolio. The Adviser shall, in acting hereunder, be an independent contractor. The Adviser shall not be an agent of the Portfolio. 2. It is understood that the Trustees, officers and shareholders of the Fund are or may be or become interested in the Adviser as directors, officers or otherwise and that directors, officers and stockholders of the Adviser are or may be or become similarly interested in the Fund, and that the Adviser may be or become interested in the Fund as a shareholder or otherwise. 3. The Adviser will be compensated on the following basis for the services and facilities to be furnished hereunder. The Adviser shall receive a monthly management fee, payable monthly as soon as practicable after the last day of each month, composed of a Group Fee and an Individual Fund Fee. (a) Group Fee Rate. The Group Fee Rate shall be based upon the monthly average of the net assets of the registered investment companies having Advisory and Service or Management Contracts with the Adviser (computed in the manner set forth in the fund's Declaration of Trust or other organizational document) determined as of the close of business on each business day throughout the month. The Group Fee Rate shall be determined on a cumulative basis pursuant to the following schedule: Average Net Assets Annualized Fee Rate (for each level) 0 - $ 3 billion .5200% 3 - 6 .4900% 6 - 9 .4600% 9 - 12 .4300% 12 - 15 .4000% 15 - 18 .3850% 18 - 21 .3700% 21 - 24 .3600% 24 - 30 .3500% 30 - 36 .3450% 36 - 42 .3400% 42 - 48 .3350% 48 - 66 .3250% 66 - 84 .3200% 84 - 102 .3150% 102 - 138 .3100% 138 - 174 .3050% 174 - 210 .3000% 210 - 246 .2950% 246 - 282 .2900% 282 - 318 .2850% 318 - 354 .2800% 354 - 390 .2750% Over 390 .2700% (b) Individual Fund Fee Rate. The Individual Fund Fee Rate shall be .45%. The sum of the Group Fee Rate, calculated as described above to the nearest millionth, and the Individual Fund Fee Rate shall constitute the Annual Management Fee Rate. One-twelfth of the Annual Management Fee Rate shall be applied to the average of the net assets of the Portfolio (computed in the manner set forth in the Fund's Declaration of Trust or other organizational document) determined as of the close of business on each business day throughout the month. (c) In case of termination of this Contract during any month, the fee for that month shall be reduced proportionately on the basis of the number of business days during which it is in effect, and the fee computed upon the average net assets for the business days it is so in effect for that month. 4. It is understood that the Portfolio will pay all its expenses, which expenses payable by the Portfolio shall include, without limitation, (i) interest and taxes; (ii) brokerage commissions and other costs in connection with the purchase or sale of securities and other investment instruments; (iii) fees and expenses of the Fund's Trustees other than those who are "interested persons" of the Fund or the Adviser; (iv) legal and audit expenses; (v) custodian, registrar and transfer agent fees and expenses; (vi) fees and expenses related to the registration and qualification of the Fund and the Portfolio's shares for distribution under state and federal securities laws; (vii) expenses of printing and mailing reports and notices and proxy material to shareholders of the Portfolio; (viii) all other expenses incidental to holding meetings of the Portfolio's shareholders, including proxy solicitations therefor; (ix) a pro rata share, based on relative net assets of the Portfolio and other registered investment companies having Advisory and Service or Management Contracts with the Adviser, of 50% of insurance premiums for fidelity and other coverage; (x) its proportionate share of association membership dues; (xi) expenses of typesetting for printing Prospectuses and Statements of Additional Information and supplements thereto; (xii) expenses of printing and mailing Prospectuses and Statements of Additional Information and supplements thereto sent to existing shareholders; and (xiii) such non-recurring or extraordinary expenses as may arise, including those relating to actions, suits or proceedings to which the Portfolio is a party and the legal obligation which the Portfolio may have to indemnify the Fund's Trustees and officers with respect thereto. 5. The services of the Adviser to the Portfolio are not to be deemed exclusive, the Adviser being free to render services to others and engage in other activities, provided, however, that such other services and activities do not, during the term of this Contract, interfere, in a material manner, with the Adviser's ability to meet all of its obligations with respect to rendering services to the Portfolio hereunder. In the absence of willful misfeasance, bad faith, gross negligence or reckless disregard of obligations or duties hereunder on the part of the Adviser, the Adviser shall not be subject to liability to the Portfolio or to any shareholder of the Portfolio for any act or omission in the course of, or connected with, rendering services hereunder or for any losses that may be sustained in the purchase, holding or sale of any security or other investment instrument. 6. (a) Subject to prior termination as provided in sub-paragraph (d) of this paragraph 6, this Contract shall continue in force until July 31, 1997 and indefinitely thereafter, but only so long as the continuance after such date shall be specifically approved at least annually by vote of the Trustees of the Fund or by vote of a majority of the outstanding voting securities of the Portfolio. (b) This Contract may be modified by mutual consent, such consent on the part of the Fund to be authorized by vote of a majority of the outstanding voting securities of the Portfolio. (c) In addition to the requirements of sub-paragraphs (a) and (b) of this paragraph 6, the terms of any continuance or modification of this Contract must have been approved by the vote of a majority of those Trustees of the Fund who are not parties to the Contract or interested persons of any such party, cast in person at a meeting called for the purpose of voting on such approval. (d) Either party hereto may, at any time on sixty (60) days' prior written notice to the other, terminate this Contract, without payment of any penalty, by action of its Trustees or Board of Directors, as the case may be, or with respect to the Portfolio by vote of a majority of the outstanding voting securities of the Portfolio. This Contract shall terminate automatically in the event of its assignment. 7. The Adviser is hereby expressly put on notice of the limitation of shareholder liability as set forth in the Fund's Declaration of Trust or other organizational document and agrees that the obligations assumed by the Fund pursuant to this Contract shall be limited in all cases to the Portfolio and its assets, and the Adviser shall not seek satisfaction of any such obligation from the shareholders or any shareholder of the Portfolio or any other Portfolios of the Fund. In addition, the Adviser shall not seek satisfaction of any such obligations from the Trustees or any individual Trustee. The Adviser understands that the rights and obligations of any Portfolio under the Declaration of Trust or other organizational document are separate and distinct from those of any and all other Portfolios. 8. This Agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts, without giving effect to the choice of laws provisions thereof. The terms "vote of a majority of the outstanding voting securities," "assignment," and "interested persons," when used herein, shall have the respective meanings specified in the 1940 Act, as now in effect or as hereafter amended, and subject to such orders as may be granted by the Securities and Exchange Commission. IN WITNESS WHEREOF the parties have caused this instrument to be signed in their behalf by their respective officers thereunto duly authorized, and their respective seals to be hereunto affixed, all as of the date written above. FIDELITY INVESTMENT TRUST on behalf of Fidelity Germany Fund By /s/ J. Gary Burkhead J. Gary Burkhead Senior Vice President FIDELITY MANAGEMENT & RESEARCH COMPANY By /s/ J. Gary Burkhead J. Gary Burkhead President EX-99.B9 4 Exhibit 5(pppp) MANAGEMENT CONTRACT between FIDELITY INVESTMENT TRUST: FIDELITY UNITED KINGDOM FUND and FIDELITY MANAGEMENT & RESEARCH COMPANY AGREEMENT made this 1st day of November 1995, by and between Fidelity Investment Trust, a Massachusetts business trust which may issue one or more series of shares of beneficial interest (hereinafter called the "Fund"), on behalf of Fidelity United Kingdom Fund (hereinafter called the "Portfolio"), and Fidelity Management & Research Company, a Massachusetts corporation (hereinafter called the "Adviser") as set forth in its entirety below. 1. (a) Investment Advisory Services. The Adviser undertakes to act as investment adviser of the Portfolio and shall, subject to the supervision of the Fund's Board of Trustees, direct the investments of the Portfolio in accordance with the investment objective, policies and limitations as provided in the Portfolio's Prospectus or other governing instruments, as amended from time to time, the Investment Company Act of 1940 and rules thereunder, as amended from time to time (the "1940 Act"), and such other limitations as the Portfolio may impose by notice in writing to the Adviser. The Adviser shall also furnish for the use of the Portfolio office space and all necessary office facilities, equipment and personnel for servicing the investments of the Portfolio; and shall pay the salaries and fees of all officers of the Fund, of all Trustees of the Fund who are "interested persons" of the Fund or of the Adviser and of all personnel of the Fund or the Adviser performing services relating to research, statistical and investment activities. The Adviser is authorized, in its discretion and without prior consultation with the Portfolio, to buy, sell, lend and otherwise trade in any stocks, bonds and other securities and investment instruments on behalf of the Portfolio. The investment policies and all other actions of the Portfolio are and shall at all times be subject to the control and direction of the Fund's Board of Trustees. (b) Management Services. The Adviser shall perform (or arrange for the performance by its affiliates of) the management and administrative services necessary for the operation of the Fund. The Adviser shall, subject to the supervision of the Board of Trustees, perform various services for the Portfolio, including but not limited to: (i) providing the Portfolio with office space, equipment and facilities (which may be its own) for maintaining its organization; (ii) on behalf of the Portfolio, supervising relations with, and monitoring the performance of, custodians, depositories, transfer and pricing agents, accountants, attorneys, underwriters, brokers and dealers, insurers and other persons in any capacity deemed to be necessary or desirable; (iii) preparing all general shareholder communications, including shareholder reports; (iv) conducting shareholder relations; (v) maintaining the Fund's existence and its records; (vi) during such times as shares are publicly offered, maintaining the registration and qualification of the Portfolio's shares under federal and state law; and (vii) investigating the development of and developing and implementing, if appropriate, management and shareholder services designed to enhance the value or convenience of the Portfolio as an investment vehicle. The Adviser shall also furnish such reports, evaluations, information or analyses to the Fund as the Fund's Board of Trustees may request from time to time or as the Adviser may deem to be desirable. The Adviser shall make recommendations to the Fund's Board of Trustees with respect to Fund policies, and shall carry out such policies as are adopted by the Trustees. The Adviser shall, subject to review by the Board of Trustees, furnish such other services as the Adviser shall from time to time determine to be necessary or useful to perform its obligations under this Contract. (c) The Adviser shall place all orders for the purchase and sale of portfolio securities for the Portfolio's account with brokers or dealers selected by the Adviser, which may include brokers or dealers affiliated with the Adviser. The Adviser shall use its best efforts to seek to execute portfolio transactions at prices which are advantageous to the Portfolio and at commission rates which are reasonable in relation to the benefits received. In selecting brokers or dealers qualified to execute a particular transaction, brokers or dealers may be selected who also provide brokerage and research services (as those terms are defined in Section 28(e) of the Securities Exchange Act of 1934) to the Portfolio and/or the other accounts over which the Adviser or its affiliates exercise investment discretion. The Adviser is authorized to pay a broker or dealer who provides such brokerage and research services a commission for executing a portfolio transaction for the Portfolio which is in excess of the amount of commission another broker or dealer would have charged for effecting that transaction if the Adviser determines in good faith that such amount of commission is reasonable in relation to the value of the brokerage and research services provided by such broker or dealer. This determination may be viewed in terms of either that particular transaction or the overall responsibilities which the Adviser and its affiliates have with respect to accounts over which they exercise investment discretion. The Trustees of the Fund shall periodically review the commissions paid by the Portfolio to determine if the commissions paid over representative periods of time were reasonable in relation to the benefits to the Portfolio. The Adviser shall, in acting hereunder, be an independent contractor. The Adviser shall not be an agent of the Portfolio. 2. It is understood that the Trustees, officers and shareholders of the Fund are or may be or become interested in the Adviser as directors, officers or otherwise and that directors, officers and stockholders of the Adviser are or may be or become similarly interested in the Fund, and that the Adviser may be or become interested in the Fund as a shareholder or otherwise. 3. The Adviser will be compensated on the following basis for the services and facilities to be furnished hereunder. The Adviser shall receive a monthly management fee, payable monthly as soon as practicable after the last day of each month, composed of a Group Fee and an Individual Fund Fee. (a) Group Fee Rate. The Group Fee Rate shall be based upon the monthly average of the net assets of the registered investment companies having Advisory and Service or Management Contracts with the Adviser (computed in the manner set forth in the fund's Declaration of Trust or other organizational document) determined as of the close of business on each business day throughout the month. The Group Fee Rate shall be determined on a cumulative basis pursuant to the following schedule: Average Net Assets Annualized Fee Rate (for each level) 0 - $ 3 billion .5200% 3 - 6 .4900% 6 - 9 .4600% 9 - 12 .4300% 12 - 15 .4000% 15 - 18 .3850% 18 - 21 .3700% 21 - 24 .3600% 24 - 30 .3500% 30 - 36 .3450% 36 - 42 .3400% 42 - 48 .3350% 48 - 66 .3250% 66 - 84 .3200% 84 - 102 .3150% 102 - 138 .3100% 138 - 174 .3050% 174 - 210 .3000% 210 - 246 .2950% 246 - 282 .2900% 282 - 318 .2850% 318 - 354 .2800% 354 - 390 .2750% Over 390 .2700% (b) Individual Fund Fee Rate. The Individual Fund Fee Rate shall be .45%. The sum of the Group Fee Rate, calculated as described above to the nearest millionth, and the Individual Fund Fee Rate shall constitute the Annual Management Fee Rate. One-twelfth of the Annual Management Fee Rate shall be applied to the average of the net assets of the Portfolio (computed in the manner set forth in the Fund's Declaration of Trust or other organizational document) determined as of the close of business on each business day throughout the month. (c) In case of termination of this Contract during any month, the fee for that month shall be reduced proportionately on the basis of the number of business days during which it is in effect, and the fee computed upon the average net assets for the business days it is so in effect for that month. 4. It is understood that the Portfolio will pay all its expenses, which expenses payable by the Portfolio shall include, without limitation, (i) interest and taxes; (ii) brokerage commissions and other costs in connection with the purchase or sale of securities and other investment instruments; (iii) fees and expenses of the Fund's Trustees other than those who are "interested persons" of the Fund or the Adviser; (iv) legal and audit expenses; (v) custodian, registrar and transfer agent fees and expenses; (vi) fees and expenses related to the registration and qualification of the Fund and the Portfolio's shares for distribution under state and federal securities laws; (vii) expenses of printing and mailing reports and notices and proxy material to shareholders of the Portfolio; (viii) all other expenses incidental to holding meetings of the Portfolio's shareholders, including proxy solicitations therefor; (ix) a pro rata share, based on relative net assets of the Portfolio and other registered investment companies having Advisory and Service or Management Contracts with the Adviser, of 50% of insurance premiums for fidelity and other coverage; (x) its proportionate share of association membership dues; (xi) expenses of typesetting for printing Prospectuses and Statements of Additional Information and supplements thereto; (xii) expenses of printing and mailing Prospectuses and Statements of Additional Information and supplements thereto sent to existing shareholders; and (xiii) such non-recurring or extraordinary expenses as may arise, including those relating to actions, suits or proceedings to which the Portfolio is a party and the legal obligation which the Portfolio may have to indemnify the Fund's Trustees and officers with respect thereto. 5. The services of the Adviser to the Portfolio are not to be deemed exclusive, the Adviser being free to render services to others and engage in other activities, provided, however, that such other services and activities do not, during the term of this Contract, interfere, in a material manner, with the Adviser's ability to meet all of its obligations with respect to rendering services to the Portfolio hereunder. In the absence of willful misfeasance, bad faith, gross negligence or reckless disregard of obligations or duties hereunder on the part of the Adviser, the Adviser shall not be subject to liability to the Portfolio or to any shareholder of the Portfolio for any act or omission in the course of, or connected with, rendering services hereunder or for any losses that may be sustained in the purchase, holding or sale of any security or other investment instrument. 6. (a) Subject to prior termination as provided in sub-paragraph (d) of this paragraph 6, this Contract shall continue in force until July 31, 1997 and indefinitely thereafter, but only so long as the continuance after such date shall be specifically approved at least annually by vote of the Trustees of the Fund or by vote of a majority of the outstanding voting securities of the Portfolio. (b) This Contract may be modified by mutual consent, such consent on the part of the Fund to be authorized by vote of a majority of the outstanding voting securities of the Portfolio. (c) In addition to the requirements of sub-paragraphs (a) and (b) of this paragraph 6, the terms of any continuance or modification of this Contract must have been approved by the vote of a majority of those Trustees of the Fund who are not parties to the Contract or interested persons of any such party, cast in person at a meeting called for the purpose of voting on such approval. (d) Either party hereto may, at any time on sixty (60) days' prior written notice to the other, terminate this Contract, without payment of any penalty, by action of its Trustees or Board of Directors, as the case may be, or with respect to the Portfolio by vote of a majority of the outstanding voting securities of the Portfolio. This Contract shall terminate automatically in the event of its assignment. 7. The Adviser is hereby expressly put on notice of the limitation of shareholder liability as set forth in the Fund's Declaration of Trust or other organizational document and agrees that the obligations assumed by the Fund pursuant to this Contract shall be limited in all cases to the Portfolio and its assets, and the Adviser shall not seek satisfaction of any such obligation from the shareholders or any shareholder of the Portfolio or any other Portfolios of the Fund. In addition, the Adviser shall not seek satisfaction of any such obligations from the Trustees or any individual Trustee. The Adviser understands that the rights and obligations of any Portfolio under the Declaration of Trust or other organizational document are separate and distinct from those of any and all other Portfolios. 8. This Agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts, without giving effect to the choice of laws provisions thereof. The terms "vote of a majority of the outstanding voting securities," "assignment," and "interested persons," when used herein, shall have the respective meanings specified in the 1940 Act, as now in effect or as hereafter amended, and subject to such orders as may be granted by the Securities and Exchange Commission. IN WITNESS WHEREOF the parties have caused this instrument to be signed in their behalf by their respective officers thereunto duly authorized, and their respective seals to be hereunto affixed, all as of the date written above. FIDELITY INVESTMENT TRUST on behalf of Fidelity United Kingdom Fund By /s/ J. Gary Burkhead J. Gary Burkhead Senior Vice President FIDELITY MANAGEMENT & RESEARCH COMPANY By /s/ J. Gary Burkhead J. Gary Burkhead President EX-99.B9 5 Exhibit 5(uuuu) MANAGEMENT CONTRACT BETWEEN FIDELITY INVESTMENT TRUST: FIDELITY JAPAN SMALL COMPANIES FUND AND FIDELITY MANAGEMENT & RESEARCH COMPANY AGREEMENT made this 1st day of November 1995, by and between Fidelity Investment Trust, a Massachusetts business trust which may issue one or more series of shares of beneficial interest (hereinafter called the "Fund"), on behalf of Fidelity Japan Small Companies Fund (hereinafter called the "Portfolio"), and Fidelity Management & Research Company, a Massachusetts corporation (hereinafter called the "Adviser") as set forth in its entirety below. 1. (a) Investment Advisory Services. The Adviser undertakes to act as investment adviser of the Portfolio and shall, subject to the supervision of the Fund's Board of Trustees, direct the investments of the Portfolio in accordance with the investment objective, policies and limitations as provided in the Portfolio's Prospectus or other governing instruments, as amended from time to time, the Investment Company Act of 1940 and rules thereunder, as amended from time to time (the "1940 Act"), and such other limitations as the Portfolio may impose by notice in writing to the Adviser. The Adviser shall also furnish for the use of the Portfolio office space and all necessary office facilities, equipment and personnel for servicing the investments of the Portfolio; and shall pay the salaries and fees of all officers of the Fund, of all Trustees of the Fund who are "interested persons" of the Fund or of the Adviser and of all personnel of the Fund or the Adviser performing services relating to research, statistical and investment activities. The Adviser is authorized, in its discretion and without prior consultation with the Portfolio, to buy, sell, lend and otherwise trade in any stocks, bonds and other securities and investment instruments on behalf of the Portfolio. The investment policies and all other actions of the Portfolio are and shall at all times be subject to the control and direction of the Fund's Board of Trustees. (b) Management Services. The Adviser shall perform (or arrange for the performance by its affiliates of) the management and administrative services necessary for the operation of the Fund. The Adviser shall, subject to the supervision of the Board of Trustees, perform various services for the Portfolio, including but not limited to: (i) providing the Portfolio with office space, equipment and facilities (which may be its own) for maintaining its organization; (ii) on behalf of the Portfolio, supervising relations with, and monitoring the performance of, custodians, depositories, transfer and pricing agents, accountants, attorneys, underwriters, brokers and dealers, insurers and other persons in any capacity deemed to be necessary or desirable; (iii) preparing all general shareholder communications, including shareholder reports; (iv) conducting shareholder relations; (v) maintaining the Fund's existence and its records; (vi) during such times as shares are publicly offered, maintaining the registration and qualification of the Portfolio's shares under federal and state law; and (vii) investigating the development of and developing and implementing, if appropriate, management and shareholder services designed to enhance the value or convenience of the Portfolio as an investment vehicle. The Adviser shall also furnish such reports, evaluations, information or analyses to the Fund as the Fund's Board of Trustees may request from time to time or as the Adviser may deem to be desirable. The Adviser shall make recommendations to the Fund's Board of Trustees with respect to Fund policies, and shall carry out such policies as are adopted by the Trustees. The Adviser shall, subject to review by the Board of Trustees, furnish such other services as the Adviser shall from time to time determine to be necessary or useful to perform its obligations under this Contract. (c) The Adviser shall place all orders for the purchase and sale of portfolio securities for the Portfolio's account with brokers or dealers selected by the Adviser, which may include brokers or dealers affiliated with the Adviser. The Adviser shall use its best efforts to seek to execute portfolio transactions at prices which are advantageous to the Portfolio and at commission rates which are reasonable in relation to the benefits received. In selecting brokers or dealers qualified to execute a particular transaction, brokers or dealers may be selected who also provide brokerage and research services (as those terms are defined in Section 28(e) of the Securities Exchange Act of 1934) to the Portfolio and/or the other accounts over which the Adviser or its affiliates exercise investment discretion. The Adviser is authorized to pay a broker or dealer who provides such brokerage and research services a commission for executing a portfolio transaction for the Portfolio which is in excess of the amount of commission another broker or dealer would have charged for effecting that transaction if the Adviser determines in good faith that such amount of commission is reasonable in relation to the value of the brokerage and research services provided by such broker or dealer. This determination may be viewed in terms of either that particular transaction or the overall responsibilities which the Adviser and its affiliates have with respect to accounts over which they exercise investment discretion. The Trustees of the Fund shall periodically review the commissions paid by the Portfolio to determine if the commissions paid over representative periods of time were reasonable in relation to the benefits to the Portfolio. The Adviser shall, in acting hereunder, be an independent contractor. The Adviser shall not be an agent of the Portfolio. 2. It is understood that the Trustees, officers and shareholders of the Fund are or may be or become interested in the Adviser as directors, officers or otherwise and that directors, officers and stockholders of the Adviser are or may be or become similarly interested in the Fund, and that the Adviser may be or become interested in the Fund as a shareholder or otherwise. 3. The Adviser will be compensated on the following basis for the services and facilities to be furnished hereunder. The Adviser shall receive a monthly management fee, payable monthly as soon as practicable after the last day of each month, composed of a Group Fee and an Individual Fund Fee . (a) Group Fee Rate. The Group Fee Rate shall be based upon the monthly average of the net assets of the registered investment companies having Advisory and Service or Management Contracts with the Adviser (computed in the manner set forth in the fund's Declaration of Trust or other organizational document) determined as of the close of business on each business day throughout the month. The Group Fee Rate shall be determined on a cumulative basis pursuant to the following schedule: Average Net Assets Annualized Fee Rate (for each level) 0 - $ 3 billion .5200% 3 - 6 .4900% 6 - 9 .4600% 9 - 12 .4300% 12 - 15 .4000% 15 - 18 .3850% 18 - 21 .3700% 21 - 24 .3600% 24 - 30 .3500% 30 - 36 .3450% 36 - 42 .3400% 42 - 48 .3350% 48 - 66 .3250% 66 - 84 .3200% 84 - 102 .3150% 102 - 138 .3100% 138 - 174 .3050% 174 - 210 .3000% 210 - 246 .2950% 246 - 282 .2900% 282 - 318 .2850% 318 - 354 .2800% 354 - 390 .2750% Over 390 .2700% (b) Individual Fund Fee Rate. The Individual Fund Fee Rate shall be .45%. The sum of the Group Fee Rate, calculated as described above to the nearest millionth, and the Individual Fund Fee Rate shall constitute the Annual Management Fee Rate. One-twelfth of the Annual Management Fee Rate shall be applied to the average of the net assets of the Portfolio (computed in the manner set forth in the Fund's Declaration of Trust or other organizational document) determined as of the close of business on each business day throughout the month. (c) In case of termination of this Contract during any month, the fee for that month shall be reduced proportionately on the basis of the number of business days during which it is in effect, and the fee computed upon the average net assets for the business days it is so in effect for that month. 4. It is understood that the Portfolio will pay all its expenses, which expenses payable by the Portfolio shall include, without limitation, (i) interest and taxes; (ii) brokerage commissions and other costs in connection with the purchase or sale of securities and other investment instruments; (iii) fees and expenses of the Fund's Trustees other than those who are "interested persons" of the Fund or the Adviser; (iv) legal and audit expenses; (v) custodian, registrar and transfer agent fees and expenses; (vi) fees and expenses related to the registration and qualification of the Fund and the Portfolio's shares for distribution under state and federal securities laws; (vii) expenses of printing and mailing reports and notices and proxy material to shareholders of the Portfolio; (viii) all other expenses incidental to holding meetings of the Portfolio's shareholders, including proxy solicitations therefor; (ix) a pro rata share, based on relative net assets of the Portfolio and other registered investment companies having Advisory and Service or Management Contracts with the Adviser, of 50% of insurance premiums for fidelity and other coverage; (x) its proportionate share of association membership dues; (xi) expenses of typesetting for printing Prospectuses and Statements of Additional Information and supplements thereto; (xii) expenses of printing and mailing Prospectuses and Statements of Additional Information and supplements thereto sent to existing shareholders; and (xiii) such non-recurring or extraordinary expenses as may arise, including those relating to actions, suits or proceedings to which the Portfolio is a party and the legal obligation which the Portfolio may have to indemnify the Fund's Trustees and officers with respect thereto. 5. The services of the Adviser to the Portfolio are not to be deemed exclusive, the Adviser being free to render services to others and engage in other activities, provided, however, that such other services and activities do not, during the term of this Contract, interfere, in a material manner, with the Adviser's ability to meet all of its obligations with respect to rendering services to the Portfolio hereunder. In the absence of willful misfeasance, bad faith, gross negligence or reckless disregard of obligations or duties hereunder on the part of the Adviser, the Adviser shall not be subject to liability to the Portfolio or to any shareholder of the Portfolio for any act or omission in the course of, or connected with, rendering services hereunder or for any losses that may be sustained in the purchase, holding or sale of any security or other investment instrument. 6. (a) Subject to prior termination as provided in sub-paragraph (d) of this paragraph 6, this Contract shall continue in force until July 31, 1997 and indefinitely thereafter, but only so long as the continuance after such date shall be specifically approved at least annually by vote of the Trustees of the Fund or by vote of a majority of the outstanding voting securities of the Portfolio. (b) This Contract may be modified by mutual consent, such consent on the part of the Fund to be authorized by vote of a majority of the outstanding voting securities of the Portfolio. (c) In addition to the requirements of sub-paragraphs (a) and (b) of this paragraph 6, the terms of any continuance or modification of this Contract must have been approved by the vote of a majority of those Trustees of the Fund who are not parties to the Contract or interested persons of any such party, cast in person at a meeting called for the purpose of voting on such approval. (d) Either party hereto may, at any time on sixty (60) days' prior written notice to the other, terminate this Contract, without payment of any penalty, by action of its Trustees or Board of Directors, as the case may be, or with respect to the Portfolio by vote of a majority of the outstanding voting securities of the Portfolio. This Contract shall terminate automatically in the event of its assignment. 7. The Adviser is hereby expressly put on notice of the limitation of shareholder liability as set forth in the Fund's Declaration of Trust or other organizational document and agrees that the obligations assumed by the Fund pursuant to this Contract shall be limited in all cases to the Portfolio and its assets, and the Adviser shall not seek satisfaction of any such obligation from the shareholders or any shareholder of the Portfolio or any other Portfolios of the Fund. In addition, the Adviser shall not seek satisfaction of any such obligations from the Trustees or any individual Trustee. The Adviser understands that the rights and obligations of any Portfolio under the Declaration of Trust or other organizational document are separate and distinct from those of any and all other Portfolios. 8. This Agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts, without giving effect to the choice of laws provisions thereof. The terms "vote of a majority of the outstanding voting securities," "assignment," and "interested persons," when used herein, shall have the respective meanings specified in the 1940 Act, as now in effect or as hereafter amended, and subject to such orders as may be granted by the Securities and Exchange Commission. IN WITNESS WHEREOF the parties have caused this instrument to be signed in their behalf by their respective officers thereunto duly authorized, and their respective seals to be hereunto affixed, all as of the date written above. FIDELITY INVESTMENT TRUST on behalf of Fidelity Japan Small Companies Fund By /s/ J. Gary Burkhead J. Gary Burkhead Senior Vice President FIDELITY MANAGEMENT & RESEARCH COMPANY By /s/ J. Gary Burkhead J. Gary Burkhead President EX-99.B9 6 Exhibit 5(aaaaa) MANAGEMENT CONTRACT BETWEEN FIDELITY INVESTMENT TRUST: FIDELITY HONG KONG AND CHINA FUND AND FIDELITY MANAGEMENT & RESEARCH COMPANY AGREEMENT made this 1st day of November 1995, by and between Fidelity Investment Trust, a Massachusetts business trust which may issue one or more series of shares of beneficial interest (hereinafter called the "Fund"), on behalf of Fidelity Hong Kong and China Fund (hereinafter called the "Portfolio"), and Fidelity Management & Research Company, a Massachusetts corporation (hereinafter called the "Adviser") as set forth in its entirety below. 1. (a) Investment Advisory Services. The Adviser undertakes to act as investment adviser of the Portfolio and shall, subject to the supervision of the Fund's Board of Trustees, direct the investments of the Portfolio in accordance with the investment objective, policies and limitations as provided in the Portfolio's Prospectus or other governing instruments, as amended from time to time, the Investment Company Act of 1940 and rules thereunder, as amended from time to time (the "1940 Act"), and such other limitations as the Portfolio may impose by notice in writing to the Adviser. The Adviser shall also furnish for the use of the Portfolio office space and all necessary office facilities, equipment and personnel for servicing the investments of the Portfolio; and shall pay the salaries and fees of all officers of the Fund, of all Trustees of the Fund who are "interested persons" of the Fund or of the Adviser and of all personnel of the Fund or the Adviser performing services relating to research, statistical and investment activities. The Adviser is authorized, in its discretion and without prior consultation with the Portfolio, to buy, sell, lend and otherwise trade in any stocks, bonds and other securities and investment instruments on behalf of the Portfolio. The investment policies and all other actions of the Portfolio are and shall at all times be subject to the control and direction of the Fund's Board of Trustees. (b) Management Services. The Adviser shall perform (or arrange for the performance by its affiliates of) the management and administrative services necessary for the operation of the Fund. The Adviser shall, subject to the supervision of the Board of Trustees, perform various services for the Portfolio, including but not limited to: (i) providing the Portfolio with office space, equipment and facilities (which may be its own) for maintaining its organization; (ii) on behalf of the Portfolio, supervising relations with, and monitoring the performance of, custodians, depositories, transfer and pricing agents, accountants, attorneys, underwriters, brokers and dealers, insurers and other persons in any capacity deemed to be necessary or desirable; (iii) preparing all general shareholder communications, including shareholder reports; (iv) conducting shareholder relations; (v) maintaining the Fund's existence and its records; (vi) during such times as shares are publicly offered, maintaining the registration and qualification of the Portfolio's shares under federal and state law; and (vii) investigating the development of and developing and implementing, if appropriate, management and shareholder services designed to enhance the value or convenience of the Portfolio as an investment vehicle. The Adviser shall also furnish such reports, evaluations, information or analyses to the Fund as the Fund's Board of Trustees may request from time to time or as the Adviser may deem to be desirable. The Adviser shall make recommendations to the Fund's Board of Trustees with respect to Fund policies, and shall carry out such policies as are adopted by the Trustees. The Adviser shall, subject to review by the Board of Trustees, furnish such other services as the Adviser shall from time to time determine to be necessary or useful to perform its obligations under this Contract. (c) The Adviser shall place all orders for the purchase and sale of portfolio securities for the Portfolio's account with brokers or dealers selected by the Adviser, which may include brokers or dealers affiliated with the Adviser. The Adviser shall use its best efforts to seek to execute portfolio transactions at prices which are advantageous to the Portfolio and at commission rates which are reasonable in relation to the benefits received. In selecting brokers or dealers qualified to execute a particular transaction, brokers or dealers may be selected who also provide brokerage and research services (as those terms are defined in Section 28(e) of the Securities Exchange Act of 1934) to the Portfolio and/or the other accounts over which the Adviser or its affiliates exercise investment discretion. The Adviser is authorized to pay a broker or dealer who provides such brokerage and research services a commission for executing a portfolio transaction for the Portfolio which is in excess of the amount of commission another broker or dealer would have charged for effecting that transaction if the Adviser determines in good faith that such amount of commission is reasonable in relation to the value of the brokerage and research services provided by such broker or dealer. This determination may be viewed in terms of either that particular transaction or the overall responsibilities which the Adviser and its affiliates have with respect to accounts over which they exercise investment discretion. The Trustees of the Fund shall periodically review the commissions paid by the Portfolio to determine if the commissions paid over representative periods of time were reasonable in relation to the benefits to the Portfolio. The Adviser shall, in acting hereunder, be an independent contractor. The Adviser shall not be an agent of the Portfolio. 2. It is understood that the Trustees, officers and shareholders of the Fund are or may be or become interested in the Adviser as directors, officers or otherwise and that directors, officers and stockholders of the Adviser are or may be or become similarly interested in the Fund, and that the Adviser may be or become interested in the Fund as a shareholder or otherwise. 3. The Adviser will be compensated on the following basis for the services and facilities to be furnished hereunder. The Adviser shall receive a monthly management fee, payable monthly as soon as practicable after the last day of each month, composed of a Group Fee and an Individual Fund Fee . (a) Group Fee Rate. The Group Fee Rate shall be based upon the monthly average of the net assets of the registered investment companies having Advisory and Service or Management Contracts with the Adviser (computed in the manner set forth in the fund's Declaration of Trust or other organizational document) determined as of the close of business on each business day throughout the month. The Group Fee Rate shall be determined on a cumulative basis pursuant to the following schedule: Average Net Assets Annualized Fee Rate (for each level) 0 - $ 3 billion .5200% 3 - 6 .4900% 6 - 9 .4600% 9 - 12 .4300% 12 - 15 .4000% 15 - 18 .3850% 18 - 21 .3700% 21 - 24 .3600% 24 - 30 .3500% 30 - 36 .3450% 36 - 42 .3400% 42 - 48 .3350% 48 - 66 .3250% 66 - 84 .3200% 84 - 102 .3150% 102 - 138 .3100% 138 - 174 .3050% 174 - 210 .3000% 210 - 246 .2950% 246 - 282 .2900% 282 - 318 .2850% 318 - 354 .2800% 354 - 390 .2750% Over 390 .2700% (b) Individual Fund Fee Rate. The Individual Fund Fee Rate shall be .45%. The sum of the Group Fee Rate, calculated as described above to the nearest millionth, and the Individual Fund Fee Rate shall constitute the Annual Management Fee Rate. One-twelfth of the Annual Management Fee Rate shall be applied to the average of the net assets of the Portfolio (computed in the manner set forth in the Fund's Declaration of Trust or other organizational document) determined as of the close of business on each business day throughout the month. (c) In case of termination of this Contract during any month, the fee for that month shall be reduced proportionately on the basis of the number of business days during which it is in effect, and the fee computed upon the average net assets for the business days it is so in effect for that month. 4. It is understood that the Portfolio will pay all its expenses, which expenses payable by the Portfolio shall include, without limitation, (i) interest and taxes; (ii) brokerage commissions and other costs in connection with the purchase or sale of securities and other investment instruments; (iii) fees and expenses of the Fund's Trustees other than those who are "interested persons" of the Fund or the Adviser; (iv) legal and audit expenses; (v) custodian, registrar and transfer agent fees and expenses; (vi) fees and expenses related to the registration and qualification of the Fund and the Portfolio's shares for distribution under state and federal securities laws; (vii) expenses of printing and mailing reports and notices and proxy material to shareholders of the Portfolio; (viii) all other expenses incidental to holding meetings of the Portfolio's shareholders, including proxy solicitations therefor; (ix) a pro rata share, based on relative net assets of the Portfolio and other registered investment companies having Advisory and Service or Management Contracts with the Adviser, of 50% of insurance premiums for fidelity and other coverage; (x) its proportionate share of association membership dues; (xi) expenses of typesetting for printing Prospectuses and Statements of Additional Information and supplements thereto; (xii) expenses of printing and mailing Prospectuses and Statements of Additional Information and supplements thereto sent to existing shareholders; and (xiii) such non-recurring or extraordinary expenses as may arise, including those relating to actions, suits or proceedings to which the Portfolio is a party and the legal obligation which the Portfolio may have to indemnify the Fund's Trustees and officers with respect thereto. 5. The services of the Adviser to the Portfolio are not to be deemed exclusive, the Adviser being free to render services to others and engage in other activities, provided, however, that such other services and activities do not, during the term of this Contract, interfere, in a material manner, with the Adviser's ability to meet all of its obligations with respect to rendering services to the Portfolio hereunder. In the absence of willful misfeasance, bad faith, gross negligence or reckless disregard of obligations or duties hereunder on the part of the Adviser, the Adviser shall not be subject to liability to the Portfolio or to any shareholder of the Portfolio for any act or omission in the course of, or connected with, rendering services hereunder or for any losses that may be sustained in the purchase, holding or sale of any security or other investment instrument. 6. (a) Subject to prior termination as provided in sub-paragraph (d) of this paragraph 6, this Contract shall continue in force until July 31, 1997 and indefinitely thereafter, but only so long as the continuance after such date shall be specifically approved at least annually by vote of the Trustees of the Fund or by vote of a majority of the outstanding voting securities of the Portfolio. (b) This Contract may be modified by mutual consent, such consent on the part of the Fund to be authorized by vote of a majority of the outstanding voting securities of the Portfolio. (c) In addition to the requirements of sub-paragraphs (a) and (b) of this paragraph 6, the terms of any continuance or modification of this Contract must have been approved by the vote of a majority of those Trustees of the Fund who are not parties to the Contract or interested persons of any such party, cast in person at a meeting called for the purpose of voting on such approval. (d) Either party hereto may, at any time on sixty (60) days' prior written notice to the other, terminate this Contract, without payment of any penalty, by action of its Trustees or Board of Directors, as the case may be, or with respect to the Portfolio by vote of a majority of the outstanding voting securities of the Portfolio. This Contract shall terminate automatically in the event of its assignment. 7. The Adviser is hereby expressly put on notice of the limitation of shareholder liability as set forth in the Fund's Declaration of Trust or other organizational document and agrees that the obligations assumed by the Fund pursuant to this Contract shall be limited in all cases to the Portfolio and its assets, and the Adviser shall not seek satisfaction of any such obligation from the shareholders or any shareholder of the Portfolio or any other Portfolios of the Fund. In addition, the Adviser shall not seek satisfaction of any such obligations from the Trustees or any individual Trustee. The Adviser understands that the rights and obligations of any Portfolio under the Declaration of Trust or other organizational document are separate and distinct from those of any and all other Portfolios. 8. This Agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts, without giving effect to the choice of laws provisions thereof. The terms "vote of a majority of the outstanding voting securities," "assignment," and "interested persons," when used herein, shall have the respective meanings specified in the 1940 Act, as now in effect or as hereafter amended, and subject to such orders as may be granted by the Securities and Exchange Commission. IN WITNESS WHEREOF the parties have caused this instrument to be signed in their behalf by their respective officers thereunto duly authorized, and their respective seals to be hereunto affixed, all as of the date written above. FIDELITY INVESTMENT TRUST on behalf of Fidelity Hong Kong and China Fund By /s/ J. Gary Burkhead J. Gary Burkhead Senior Vice President FIDELITY MANAGEMENT & RESEARCH COMPANY By /s/ J. Gary Burkhead J. Gary Burkhead President EX-99.B9 7 Exhibit 5(ggggg) MANAGEMENT CONTRACT between FIDELITY INVESTMENT TRUST: FIDELITY NORDIC FUND and FIDELITY MANAGEMENT & RESEARCH COMPANY AGREEMENT made this 1st day of November 1995, by and between Fidelity Investment Trust, a Massachusetts business trust which may issue one or more series of shares of beneficial interest (hereinafter called the "Fund"), on behalf of Fidelity Nordic Fund (hereinafter called the "Portfolio"), and Fidelity Management & Research Company, a Massachusetts corporation (hereinafter called the "Adviser") as set forth in its entirety below. 1. (a) Investment Advisory Services. The Adviser undertakes to act as investment adviser of the Portfolio and shall, subject to the supervision of the Fund's Board of Trustees, direct the investments of the Portfolio in accordance with the investment objective, policies and limitations as provided in the Portfolio's Prospectus or other governing instruments, as amended from time to time, the Investment Company Act of 1940 and rules thereunder, as amended from time to time (the "1940 Act"), and such other limitations as the Portfolio may impose by notice in writing to the Adviser. The Adviser shall also furnish for the use of the Portfolio office space and all necessary office facilities, equipment and personnel for servicing the investments of the Portfolio; and shall pay the salaries and fees of all officers of the Fund, of all Trustees of the Fund who are "interested persons" of the Fund or of the Adviser and of all personnel of the Fund or the Adviser performing services relating to research, statistical and investment activities. The Adviser is authorized, in its discretion and without prior consultation with the Portfolio, to buy, sell, lend and otherwise trade in any stocks, bonds and other securities and investment instruments on behalf of the Portfolio. The investment policies and all other actions of the Portfolio are and shall at all times be subject to the control and direction of the Fund's Board of Trustees. (b) Management Services. The Adviser shall perform (or arrange for the performance by its affiliates of) the management and administrative services necessary for the operation of the Fund. The Adviser shall, subject to the supervision of the Board of Trustees, perform various services for the Portfolio, including but not limited to: (i) providing the Portfolio with office space, equipment and facilities (which may be its own) for maintaining its organization; (ii) on behalf of the Portfolio, supervising relations with, and monitoring the performance of, custodians, depositories, transfer and pricing agents, accountants, attorneys, underwriters, brokers and dealers, insurers and other persons in any capacity deemed to be necessary or desirable; (iii) preparing all general shareholder communications, including shareholder reports; (iv) conducting shareholder relations; (v) maintaining the Fund's existence and its records; (vi) during such times as shares are publicly offered, maintaining the registration and qualification of the Portfolio's shares under federal and state law; and (vii) investigating the development of and developing and implementing, if appropriate, management and shareholder services designed to enhance the value or convenience of the Portfolio as an investment vehicle. The Adviser shall also furnish such reports, evaluations, information or analyses to the Fund as the Fund's Board of Trustees may request from time to time or as the Adviser may deem to be desirable. The Adviser shall make recommendations to the Fund's Board of Trustees with respect to Fund policies, and shall carry out such policies as are adopted by the Trustees. The Adviser shall, subject to review by the Board of Trustees, furnish such other services as the Adviser shall from time to time determine to be necessary or useful to perform its obligations under this Contract. (c) The Adviser shall place all orders for the purchase and sale of portfolio securities for the Portfolio's account with brokers or dealers selected by the Adviser, which may include brokers or dealers affiliated with the Adviser. The Adviser shall use its best efforts to seek to execute portfolio transactions at prices which are advantageous to the Portfolio and at commission rates which are reasonable in relation to the benefits received. In selecting brokers or dealers qualified to execute a particular transaction, brokers or dealers may be selected who also provide brokerage and research services (as those terms are defined in Section 28(e) of the Securities Exchange Act of 1934) to the Portfolio and/or the other accounts over which the Adviser or its affiliates exercise investment discretion. The Adviser is authorized to pay a broker or dealer who provides such brokerage and research services a commission for executing a portfolio transaction for the Portfolio which is in excess of the amount of commission another broker or dealer would have charged for effecting that transaction if the Adviser determines in good faith that such amount of commission is reasonable in relation to the value of the brokerage and research services provided by such broker or dealer. This determination may be viewed in terms of either that particular transaction or the overall responsibilities which the Adviser and its affiliates have with respect to accounts over which they exercise investment discretion. The Trustees of the Fund shall periodically review the commissions paid by the Portfolio to determine if the commissions paid over representative periods of time were reasonable in relation to the benefits to the Portfolio. The Adviser shall, in acting hereunder, be an independent contractor. The Adviser shall not be an agent of the Portfolio. 2. It is understood that the Trustees, officers and shareholders of the Fund are or may be or become interested in the Adviser as directors, officers or otherwise and that directors, officers and stockholders of the Adviser are or may be or become similarly interested in the Fund, and that the Adviser may be or become interested in the Fund as a shareholder or otherwise. 3. The Adviser will be compensated on the following basis for the services and facilities to be furnished hereunder. The Adviser shall receive a monthly management fee, payable monthly as soon as practicable after the last day of each month, composed of a Group Fee and an Individual Fund Fee. (a) Group Fee Rate. The Group Fee Rate shall be based upon the monthly average of the net assets of the registered investment companies having Advisory and Service or Management Contracts with the Adviser (computed in the manner set forth in the fund's Declaration of Trust or other organizational document) determined as of the close of business on each business day throughout the month. The Group Fee Rate shall be determined on a cumulative basis pursuant to the following schedule: Average Net Assets Annualized Fee Rate (for each level) 0 - $ 3 billion .5200% 3 - 6 .4900% 6 - 9 .4600% 9 - 12 .4300% 12 - 15 .4000% 15 - 18 .3850% 18 - 21 .3700% 21 - 24 .3600% 24 - 30 .3500% 30 - 36 .3450% 36 - 42 .3400% 42 - 48 .3350% 48 - 66 .3250% 66 - 84 .3200% 84 - 102 .3150% 102 - 138 .3100% 138 - 174 .3050% 174 - 210 .3000% 210 - 246 .2950% 246 - 282 .2900% 282 - 318 .2850% 318 - 354 .2800% 354 - 390 .2750% Over 390 .2700% (b) Individual Fund Fee Rate. The Individual Fund Fee Rate shall be .45%. The sum of the Group Fee Rate, calculated as described above to the nearest millionth, and the Individual Fund Fee Rate shall constitute the Annual Management Fee Rate. One-twelfth of the Annual Management Fee Rate shall be applied to the average of the net assets of the Portfolio (computed in the manner set forth in the Fund's Declaration of Trust or other organizational document) determined as of the close of business on each business day throughout the month. (c) In case of termination of this Contract during any month, the fee for that month shall be reduced proportionately on the basis of the number of business days during which it is in effect, and the fee computed upon the average net assets for the business days it is so in effect for that month. 4. It is understood that the Portfolio will pay all its expenses, which expenses payable by the Portfolio shall include, without limitation, (i) interest and taxes; (ii) brokerage commissions and other costs in connection with the purchase or sale of securities and other investment instruments; (iii) fees and expenses of the Fund's Trustees other than those who are "interested persons" of the Fund or the Adviser; (iv) legal and audit expenses; (v) custodian, registrar and transfer agent fees and expenses; (vi) fees and expenses related to the registration and qualification of the Fund and the Portfolio's shares for distribution under state and federal securities laws; (vii) expenses of printing and mailing reports and notices and proxy material to shareholders of the Portfolio; (viii) all other expenses incidental to holding meetings of the Portfolio's shareholders, including proxy solicitations therefor; (ix) a pro rata share, based on relative net assets of the Portfolio and other registered investment companies having Advisory and Service or Management Contracts with the Adviser, of 50% of insurance premiums for fidelity and other coverage; (x) its proportionate share of association membership dues; (xi) expenses of typesetting for printing Prospectuses and Statements of Additional Information and supplements thereto; (xii) expenses of printing and mailing Prospectuses and Statements of Additional Information and supplements thereto sent to existing shareholders; and (xiii) such non-recurring or extraordinary expenses as may arise, including those relating to actions, suits or proceedings to which the Portfolio is a party and the legal obligation which the Portfolio may have to indemnify the Fund's Trustees and officers with respect thereto. 5. The services of the Adviser to the Portfolio are not to be deemed exclusive, the Adviser being free to render services to others and engage in other activities, provided, however, that such other services and activities do not, during the term of this Contract, interfere, in a material manner, with the Adviser's ability to meet all of its obligations with respect to rendering services to the Portfolio hereunder. In the absence of willful misfeasance, bad faith, gross negligence or reckless disregard of obligations or duties hereunder on the part of the Adviser, the Adviser shall not be subject to liability to the Portfolio or to any shareholder of the Portfolio for any act or omission in the course of, or connected with, rendering services hereunder or for any losses that may be sustained in the purchase, holding or sale of any security or other investment instrument. 6. (a) Subject to prior termination as provided in sub-paragraph (d) of this paragraph 6, this Contract shall continue in force until July 31, 1997 and indefinitely thereafter, but only so long as the continuance after such date shall be specifically approved at least annually by vote of the Trustees of the Fund or by vote of a majority of the outstanding voting securities of the Portfolio. (b) This Contract may be modified by mutual consent, such consent on the part of the Fund to be authorized by vote of a majority of the outstanding voting securities of the Portfolio. (c) In addition to the requirements of sub-paragraphs (a) and (b) of this paragraph 6, the terms of any continuance or modification of this Contract must have been approved by the vote of a majority of those Trustees of the Fund who are not parties to the Contract or interested persons of any such party, cast in person at a meeting called for the purpose of voting on such approval. (d) Either party hereto may, at any time on sixty (60) days' prior written notice to the other, terminate this Contract, without payment of any penalty, by action of its Trustees or Board of Directors, as the case may be, or with respect to the Portfolio by vote of a majority of the outstanding voting securities of the Portfolio. This Contract shall terminate automatically in the event of its assignment. 7. The Adviser is hereby expressly put on notice of the limitation of shareholder liability as set forth in the Fund's Declaration of Trust or other organizational document and agrees that the obligations assumed by the Fund pursuant to this Contract shall be limited in all cases to the Portfolio and its assets, and the Adviser shall not seek satisfaction of any such obligation from the shareholders or any shareholder of the Portfolio or any other Portfolios of the Fund. In addition, the Adviser shall not seek satisfaction of any such obligations from the Trustees or any individual Trustee. The Adviser understands that the rights and obligations of any Portfolio under the Declaration of Trust or other organizational document are separate and distinct from those of any and all other Portfolios. 8. This Agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts, without giving effect to the choice of laws provisions thereof. The terms "vote of a majority of the outstanding voting securities," "assignment," and "interested persons," when used herein, shall have the respective meanings specified in the 1940 Act, as now in effect or as hereafter amended, and subject to such orders as may be granted by the Securities and Exchange Commission. IN WITNESS WHEREOF the parties have caused this instrument to be signed in their behalf by their respective officers thereunto duly authorized, and their respective seals to be hereunto affixed, all as of the date written above. FIDELITY INVESTMENT TRUST on behalf of Fidelity Nordic Fund By /s/ J. Gary Burkhead J. Gary Burkhead Senior Vice President FIDELITY MANAGEMENT & RESEARCH COMPANY By /s/ J. Gary Burkhead J. Gary Burkhead President EX-99.B5 8 Exhibit 5(zzzz) SUB-ADVISORY AGREEMENT between FIDELITY INVESTMENTS JAPAN LIMITED and FIDELITY MANAGEMENT & RESEARCH COMPANY and FIDELITY INVESTMENT TRUST on behalf of FIDELITY JAPAN SMALL COMPANIES FUND AGREEMENT made this 14th day of September, 1995, by and between Fidelity Management & Research Company, a Massachusetts corporation with principal offices at 82 Devonshire Street, Boston, Massachusetts (hereinafter called the "Advisor"); Fidelity Investments Japan Limited, a Japanese company with principal offices at Shiroyama JT Mori Building, 19th Floor, 3-1 Toranomon 4-chome, Minato-ku, Tokyo 105, Japan (hereinafter called the "Sub-Advisor"); and Fidelity Investment Trust, a Massachusetts business trust which may issue one or more series of shares of beneficial interest (hereinafter called the "Trust") on behalf of Fidelity Japan Small Companies Fund (hereinafter called the "Portfolio"). WHEREAS the Trust and the Advisor have entered into a Management Contract on behalf of the Portfolio, pursuant to which the Advisor is to act as investment manager of the Portfolio; and WHEREAS the Sub-Advisor has been formed in part for the purpose of researching and compiling information and recommendations with respect to the economies of various countries, and securities of issuers located in such countries, and providing investment advisory services in connection therewith; NOW, THEREFORE, in consideration of the premises and the mutual promises hereinafter set forth, the Trust, the Advisor and the Sub-Advisor agree as follows: 1. Duties: The Advisor may, in its discretion, appoint the Sub-Advisor to perform one or more of the following services with respect to all or a portion of the investments of the Portfolio. The services and the portion of the investments of the Portfolio to be advised or managed by the Sub-Advisor shall be as agreed upon from time to time by the Advisor and the Sub-Advisor. The Sub-Advisor shall pay the salaries and fees of all personnel of the Sub-Advisor performing services for the Portfolio relating to research, statistical and investment activities. (a) INVESTMENT ADVICE: If and to the extent requested by the Advisor, the Sub-Advisor shall provide investment advice to the Portfolio and the Advisor with respect to all or a portion of the investments of the Portfolio, and in connection with such advice shall furnish the Portfolio and the Advisor such factual information, research reports and investment recommendations as the Advisor may reasonably require. Such information may include written and oral reports and analyses. (b) INVESTMENT MANAGEMENT: If and to the extent requested by the Advisor, the Sub-Advisor shall, subject to the supervision of the Advisor, manage all or a portion of the investments of the Portfolio in accordance with the investment objective, policies and limitations provided in the Portfolio's Prospectus or other governing instruments, as amended from time to time, the Investment Company Act of 1940 (the"1940 Act") and rules thereunder, as amended from time to time, and such other limitations as the Trust or Advisor may impose with respect to the Portfolio by notice to the Sub-Advisor. With respect to the portion of the investments of the Portfolio under its management, the Sub-Advisor is authorized to make investment decisions on behalf of the Portfolio with regard to any stock, bond, other security or investment instrument, and to place orders for the purchase and sale of such securities through such broker-dealers as the Sub-Advisor may select. The Sub-Advisor may also be authorized, but only to the extent such duties are delegated in writing by the Advisor, to provide additional investment management services to the Portfolio, including but not limited to services such as managing foreign currency investments, purchasing and selling or writing futures and options contracts, borrowing money, or lending securities on behalf of the Portfolio. All investment management and any other activities of the Sub-Advisor shall at all times be subject to the control and direction of the Advisor and the Trust's Board of Trustees. (c) SUBSIDIARIES AND AFFILIATES: The Sub-Advisor may perform any or all of the services contemplated by this Agreement directly or through such of its subsidiaries or other affiliated persons as the Sub-Advisor shall determine; provided, however, that performance of such services through such subsidiaries or other affiliated persons shall have been approved by the Trust to the extent required pursuant to the 1940 Act and rules thereunder. 2. Information to be Provided to the Trust and the Advisor: The Sub-Advisor shall furnish such reports, evaluations, information or analyses to the Trust and the Advisor as the Trust's Board of Trustees or the Advisor may reasonably request from time to time, or as the Sub-Advisor may deem to be desirable. 3. Brokerage: In connection with the services provided under subparagraph (b) of paragraph 1 of this Agreement, the Sub-Advisor shall place all orders for the purchase and sale of portfolio securities for the Portfolio's account with brokers or dealers selected by the Sub-Advisor, which may include brokers or dealers affiliated with the Advisor or Sub-Advisor. The Sub-Advisor shall use its best efforts to seek to execute portfolio transactions at prices which are advantageous to the Portfolio and at commission rates which are reasonable in relation to the benefits received. In selecting brokers or dealers qualified to execute a particular transaction, brokers or dealers may be selected who also provide brokerage and research services (as those terms are defined in Section 28(e) of the Securities Exchange Act of l934) to the Portfolio and/or to the other accounts over which the Sub-Advisor or Advisor exercise investment discretion. The Sub-Advisor is authorized to pay a broker or dealer who provides such brokerage and research services a commission for executing a portfolio transaction for the Portfolio which is in excess of the amount of commission another broker or dealer would have charged for effecting that transaction if the Sub-Advisor determines in good faith that such amount of commission is reasonable in relation to the value of the brokerage and research services provided by such broker or dealer. This determination may be viewed in terms of either that particular transaction or the overall responsibilities which the Sub-Advisor has with respect to accounts over which it exercises investment discretion. The Trustees of the Trust shall periodically review the commissions paid by the Portfolio to determine if the commissions paid over representative periods of time were reasonable in relation to the benefits to the Portfolio. 4. Compensation: The Advisor shall compensate the Sub-Advisor on the following basis for the services to be furnished hereunder. (a) INVESTMENT ADVISORY FEE: For services provided under subparagraph (a) of paragraph 1 of this Agreement, the Advisor agrees to pay the Sub-Advisor a monthly Sub-Advisory Fee. The Sub-Advisory Fee shall be equal to: (i) 30% of the monthly management fee rate (including performance adjustments, if any) that the Portfolio is obligated to pay the Advisor under its Management Contract with the Advisor, multiplied by (ii) the fraction equal to the net assets of the Portfolio as to which the Sub-Advisor shall have provided investment advice divided by the net assets of the Portfolio for that month. The Sub-Advisory Fee shall not be reduced to reflect expense reimbursements or fee waivers by the Advisor, if any, in effect from time to time. (b) INVESTMENT MANAGEMENT FEE: For services provided under subparagraph (b) of paragraph 1 of this Agreement, the Advisor agrees to pay the Sub-Advisor a monthly Investment Management Fee. The Investment Management Fee shall be equal to: (i) 50% of the monthly management fee rate (including performance adjustments, if any) that the Portfolio is obligated to pay the Advisor under its Management Contract with the Advisor, multiplied by: (ii) the fraction equal to the net assets of the Portfolio as to which the Sub-Advisor shall have provided investment management services divided by the net assets of the Portfolio for that month. If in any fiscal year the aggregate expenses of the Portfolio exceed any applicable expense limitation imposed by any state or federal securities laws or regulations, and the Advisor waives all or a portion of its management fee or reimburses the Portfolio for expenses to the extent required to satisfy such limitation, the Investment Management Fee paid to the Sub-Advisor will be reduced by 50% of the amount of such waivers or reimbursements multiplied by the fraction determined in (ii). If the Sub-Advisor reduces its fees to reflect such waivers or reimbursements and the Advisor subsequently recovers all or any portion of such waivers and reimbursements, then the Sub-Advisor shall be entitled to receive from the Advisor a proportionate share of the amount recovered. To the extent that waivers and reimbursements by the Advisor required by such limitations are in excess of the Advisor's management fee, the Investment Management Fee paid to the Sub-Advisor will be reduced to zero for that month, but in no event shall the Sub-Advisor be required to reimburse the Advisor for all or a portion of such excess reimbursements. (c) PROVISION OF MULTIPLE SERVICES: If the Sub-Advisor shall have provided both investment advisory services under subparagraph (a) and investment management services under subparagraph (b) of paragraph 1 for the same portion of the investments of the Portfolio for the same period, the fees paid to the Sub-Advisor with respect to such investments shall be calculated exclusively under subparagraph (b) of this paragraph 4. 5. Expenses: It is understood that the Portfolio will pay all of its expenses other than those expressly stated to be payable by the Sub-Advisor hereunder or by the Advisor under the Management Contract with the Portfolio, which expenses payable by the Portfolio shall include, without limitation, (i) interest and taxes; (ii) brokerage commissions and other costs in connection with the purchase or sale of securities and other investment instruments; (iii) fees and expenses of the Trust's Trustees other than those who are "interested persons" of the Trust, the Sub-Advisor or the Advisor; (iv) legal and audit expenses; (v) custodian, registrar and transfer agent fees and expenses; (vi) fees and expenses related to the registration and qualification of the Trust and the Portfolio's shares for distribution under state and federal securities laws; (vii) expenses of printing and mailing reports and notices and proxy material to shareholders of the Portfolio; (viii) all other expenses incidental to holding meetings of the Portfolio's shareholders, including proxy solicitations therefor; (ix) a pro rata share, based on relative net assets of the Portfolio and other registered investment companies having Advisory and Service or Management Contracts with the Advisor, of 50% of insurance premiums for fidelity and other coverage; (x) its proportionate share of association membership dues; (xi) expenses of typesetting for printing Prospectuses and Statements of Additional Information and supplements thereto; (xii) expenses of printing and mailing Prospectuses and Statements of Additional Information and supplements thereto sent to existing shareholders; and (xiii) such non-recurring or extraordinary expenses as may arise, including those relating to actions, suits or proceedings to which the Portfolio is a party and the legal obligation which the Portfolio may have to indemnify the Trust's Trustees and officers with respect thereto. 6. Interested Persons: It is understood that Trustees, officers, and shareholders of the Trust are or may be or become interested in the Advisor or the Sub-Advisor as directors, officers or otherwise and that directors, officers and stockholders of the Advisor or the Sub-Advisor are or may be or become similarly interested in the Trust, and that the Advisor or the Sub-Advisor may be or become interested in the Trust as a shareholder or otherwise. 7. Services to Other Companies or Accounts: The services of the Sub-Advisor to the Advisor are not to be deemed to be exclusive, the Sub-Advisor being free to render services to others and engage in other activities, provided, however, that such other services and activities do not, during the term of this Agreement, interfere, in a material manner, with the Sub-Advisor's ability to meet all of its obligations hereunder. The Sub-Advisor shall for all purposes be an independent contractor and not an agent or employee of the Advisor or the Trust. 8. Standard of Care: In the absence of willful misfeasance, bad faith, gross negligence or reckless disregard of obligations or duties hereunder on the part of the Sub-Advisor, the Sub-Advisor shall not be subject to liability to the Advisor, the Trust or to any shareholder of the Portfolio for any act or omission in the course of, or connected with, rendering services hereunder or for any losses that may be sustained in the purchase, holding or sale of any security. 9. Duration and Termination of Agreement; Amendments: (a) Subject to prior termination as provided in subparagraph (d) of this paragraph 9, this Agreement shall continue in force until July 31, 1996 and indefinitely thereafter, but only so long as the continuance after such period shall be specifically approved at least annually by vote of the Trust's Board of Trustees or by vote of a majority of the outstanding voting securities of the Portfolio. (b) This Agreement may be modified by mutual consent of the Advisor, the Sub-Advisor and the Portfolio, such consent on the part of the Portfolio to be authorized by vote of a majority of the outstanding voting securities of the Portfolio. (c) In addition to the requirements of subparagraphs (a) and (b) of this paragraph 9, the terms of any continuance or modification of this Agreement must have been approved by the vote of a majority of those Trustees of the Trust who are not parties to this Agreement or interested persons of any such party, cast in person at a meeting called for the purpose of voting on such approval. (d) Either the Advisor, the Sub-Advisor or the Portfolio may, at any time on sixty (60) days' prior written notice to the other parties, terminate this Agreement, without payment of any penalty, by action of its Board of Trustees or Directors, or with respect to the Portfolio by vote of a majority of its outstanding voting securities. This Agreement shall terminate automatically in the event of its assignment. 10. Limitation of Liability: The Sub-Advisor is hereby expressly put on notice of the limitation of shareholder liability as set forth in the Declaration of Trust or other organizational document of the Trust and agrees that any obligations of the Trust or the Portfolio arising in connection with this Agreement shall be limited in all cases to the Portfolio and its assets, and the Sub-Advisor shall not seek satisfaction of any such obligation from the shareholders or any shareholder of the Portfolio. Nor shall the Sub-Advisor seek satisfaction of any such obligation from the Trustees or any individual Trustee. 11. Governing Law: This Agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts, without giving effect to the choice of laws provisions thereof. The terms "registered investment company," "vote of a majority of the outstanding voting securities," "assignment," and "interested persons," when used herein, shall have the respective meanings specified in the 1940 Act as now in effect or as hereafter amended. IN WITNESS WHEREOF the parties hereto have caused this instrument to be signed in their behalf by their respective officers thereunto duly authorized, all as of the date written above. FIDELITY INVESTMENTS JAPAN LIMITED BY: /s/ Billy Wilder FIDELITY MANAGEMENT & RESEARCH COMPANY BY: /s/ J. Gary Burkhead J. Gary Burkhead President FIDELITY INVESTMENT TRUST on behalf of FIDELITY JAPAN SMALL COMPANIES FUND BY: /s/ J. Gary Burkhead J. Gary Burkhead Senior Vice President EX-99.B5 9 Exhibit 5(fffff) SUB-ADVISORY AGREEMENT between FIDELITY INVESTMENTS JAPAN LIMITED and FIDELITY MANAGEMENT & RESEARCH COMPANY and FIDELITY INVESTMENT TRUST on behalf of FIDELITY HONG KONG AND CHINA FUND AGREEMENT made this 14th day of September, 1995, by and between Fidelity Management & Research Company, a Massachusetts corporation with principal offices at 82 Devonshire Street, Boston, Massachusetts (hereinafter called the "Advisor"); Fidelity Investments Japan Limited, a Japanese company with principal offices at Shiroyama JT Mori Building, 19th Floor, 3-1 Toranomon 4-chome, Minato-ku, Tokyo 105, Japan (hereinafter called the "Sub-Advisor"); and Fidelity Investment Trust, a Massachusetts business trust which may issue one or more series of shares of beneficial interest (hereinafter called the "Trust") on behalf of Fidelity Hong Kong and China Fund (hereinafter called the "Portfolio"). WHEREAS the Trust and the Advisor have entered into a Management Contract on behalf of the Portfolio, pursuant to which the Advisor is to act as investment manager of the Portfolio; and WHEREAS the Sub-Advisor has been formed in part for the purpose of researching and compiling information and recommendations with respect to the economies of various countries, and securities of issuers located in such countries, and providing investment advisory services in connection therewith; NOW, THEREFORE, in consideration of the premises and the mutual promises hereinafter set forth, the Trust, the Advisor and the Sub-Advisor agree as follows: 1. Duties: The Advisor may, in its discretion, appoint the Sub-Advisor to perform one or more of the following services with respect to all or a portion of the investments of the Portfolio. The services and the portion of the investments of the Portfolio to be advised or managed by the Sub-Advisor shall be as agreed upon from time to time by the Advisor and the Sub-Advisor. The Sub-Advisor shall pay the salaries and fees of all personnel of the Sub-Advisor performing services for the Portfolio relating to research, statistical and investment activities. (a) INVESTMENT ADVICE: If and to the extent requested by the Advisor, the Sub-Advisor shall provide investment advice to the Portfolio and the Advisor with respect to all or a portion of the investments of the Portfolio, and in connection with such advice shall furnish the Portfolio and the Advisor such factual information, research reports and investment recommendations as the Advisor may reasonably require. Such information may include written and oral reports and analyses. (b) INVESTMENT MANAGEMENT: If and to the extent requested by the Advisor, the Sub-Advisor shall, subject to the supervision of the Advisor, manage all or a portion of the investments of the Portfolio in accordance with the investment objective, policies and limitations provided in the Portfolio's Prospectus or other governing instruments, as amended from time to time, the Investment Company Act of 1940 (the"1940 Act") and rules thereunder, as amended from time to time, and such other limitations as the Trust or Advisor may impose with respect to the Portfolio by notice to the Sub-Advisor. With respect to the portion of the investments of the Portfolio under its management, the Sub-Advisor is authorized to make investment decisions on behalf of the Portfolio with regard to any stock, bond, other security or investment instrument, and to place orders for the purchase and sale of such securities through such broker-dealers as the Sub-Advisor may select. The Sub-Advisor may also be authorized, but only to the extent such duties are delegated in writing by the Advisor, to provide additional investment management services to the Portfolio, including but not limited to services such as managing foreign currency investments, purchasing and selling or writing futures and options contracts, borrowing money, or lending securities on behalf of the Portfolio. All investment management and any other activities of the Sub-Advisor shall at all times be subject to the control and direction of the Advisor and the Trust's Board of Trustees. (c) SUBSIDIARIES AND AFFILIATES: The Sub-Advisor may perform any or all of the services contemplated by this Agreement directly or through such of its subsidiaries or other affiliated persons as the Sub-Advisor shall determine; provided, however, that performance of such services through such subsidiaries or other affiliated persons shall have been approved by the Trust to the extent required pursuant to the 1940 Act and rules thereunder. 2. Information to be Provided to the Trust and the Advisor: The Sub-Advisor shall furnish such reports, evaluations, information or analyses to the Trust and the Advisor as the Trust's Board of Trustees or the Advisor may reasonably request from time to time, or as the Sub-Advisor may deem to be desirable. 3. Brokerage: In connection with the services provided under subparagraph (b) of paragraph 1 of this Agreement, the Sub-Advisor shall place all orders for the purchase and sale of portfolio securities for the Portfolio's account with brokers or dealers selected by the Sub-Advisor, which may include brokers or dealers affiliated with the Advisor or Sub-Advisor. The Sub-Advisor shall use its best efforts to seek to execute portfolio transactions at prices which are advantageous to the Portfolio and at commission rates which are reasonable in relation to the benefits received. In selecting brokers or dealers qualified to execute a particular transaction, brokers or dealers may be selected who also provide brokerage and research services (as those terms are defined in Section 28(e) of the Securities Exchange Act of l934) to the Portfolio and/or to the other accounts over which the Sub-Advisor or Advisor exercise investment discretion. The Sub-Advisor is authorized to pay a broker or dealer who provides such brokerage and research services a commission for executing a portfolio transaction for the Portfolio which is in excess of the amount of commission another broker or dealer would have charged for effecting that transaction if the Sub-Advisor determines in good faith that such amount of commission is reasonable in relation to the value of the brokerage and research services provided by such broker or dealer. This determination may be viewed in terms of either that particular transaction or the overall responsibilities which the Sub-Advisor has with respect to accounts over which it exercises investment discretion. The Trustees of the Trust shall periodically review the commissions paid by the Portfolio to determine if the commissions paid over representative periods of time were reasonable in relation to the benefits to the Portfolio. 4. Compensation: The Advisor shall compensate the Sub-Advisor on the following basis for the services to be furnished hereunder. (a) INVESTMENT ADVISORY FEE: For services provided under subparagraph (a) of paragraph 1 of this Agreement, the Advisor agrees to pay the Sub-Advisor a monthly Sub-Advisory Fee. The Sub-Advisory Fee shall be equal to: (i) 30% of the monthly management fee rate (including performance adjustments, if any) that the Portfolio is obligated to pay the Advisor under its Management Contract with the Advisor, multiplied by (ii) the fraction equal to the net assets of the Portfolio as to which the Sub-Advisor shall have provided investment advice divided by the net assets of the Portfolio for that month. The Sub-Advisory Fee shall not be reduced to reflect expense reimbursements or fee waivers by the Advisor, if any, in effect from time to time. (b) INVESTMENT MANAGEMENT FEE: For services provided under subparagraph (b) of paragraph 1 of this Agreement, the Advisor agrees to pay the Sub-Advisor a monthly Investment Management Fee. The Investment Management Fee shall be equal to: (i) 50% of the monthly management fee rate (including performance adjustments, if any) that the Portfolio is obligated to pay the Advisor under its Management Contract with the Advisor, multiplied by: (ii) the fraction equal to the net assets of the Portfolio as to which the Sub-Advisor shall have provided investment management services divided by the net assets of the Portfolio for that month. If in any fiscal year the aggregate expenses of the Portfolio exceed any applicable expense limitation imposed by any state or federal securities laws or regulations, and the Advisor waives all or a portion of its management fee or reimburses the Portfolio for expenses to the extent required to satisfy such limitation, the Investment Management Fee paid to the Sub-Advisor will be reduced by 50% of the amount of such waivers or reimbursements multiplied by the fraction determined in (ii). If the Sub-Advisor reduces its fees to reflect such waivers or reimbursements and the Advisor subsequently recovers all or any portion of such waivers and reimbursements, then the Sub-Advisor shall be entitled to receive from the Advisor a proportionate share of the amount recovered. To the extent that waivers and reimbursements by the Advisor required by such limitations are in excess of the Advisor's management fee, the Investment Management Fee paid to the Sub-Advisor will be reduced to zero for that month, but in no event shall the Sub-Advisor be required to reimburse the Advisor for all or a portion of such excess reimbursements. (c) PROVISION OF MULTIPLE SERVICES: If the Sub-Advisor shall have provided both investment advisory services under subparagraph (a) and investment management services under subparagraph (b) of paragraph 1 for the same portion of the investments of the Portfolio for the same period, the fees paid to the Sub-Advisor with respect to such investments shall be calculated exclusively under subparagraph (b) of this paragraph 4. 5. Expenses: It is understood that the Portfolio will pay all of its expenses other than those expressly stated to be payable by the Sub-Advisor hereunder or by the Advisor under the Management Contract with the Portfolio, which expenses payable by the Portfolio shall include, without limitation, (i) interest and taxes; (ii) brokerage commissions and other costs in connection with the purchase or sale of securities and other investment instruments; (iii) fees and expenses of the Trust's Trustees other than those who are "interested persons" of the Trust, the Sub-Advisor or the Advisor; (iv) legal and audit expenses; (v) custodian, registrar and transfer agent fees and expenses; (vi) fees and expenses related to the registration and qualification of the Trust and the Portfolio's shares for distribution under state and federal securities laws; (vii) expenses of printing and mailing reports and notices and proxy material to shareholders of the Portfolio; (viii) all other expenses incidental to holding meetings of the Portfolio's shareholders, including proxy solicitations therefor; (ix) a pro rata share, based on relative net assets of the Portfolio and other registered investment companies having Advisory and Service or Management Contracts with the Advisor, of 50% of insurance premiums for fidelity and other coverage; (x) its proportionate share of association membership dues; (xi) expenses of typesetting for printing Prospectuses and Statements of Additional Information and supplements thereto; (xii) expenses of printing and mailing Prospectuses and Statements of Additional Information and supplements thereto sent to existing shareholders; and (xiii) such non-recurring or extraordinary expenses as may arise, including those relating to actions, suits or proceedings to which the Portfolio is a party and the legal obligation which the Portfolio may have to indemnify the Trust's Trustees and officers with respect thereto. 6. Interested Persons: It is understood that Trustees, officers, and shareholders of the Trust are or may be or become interested in the Advisor or the Sub-Advisor as directors, officers or otherwise and that directors, officers and stockholders of the Advisor or the Sub-Advisor are or may be or become similarly interested in the Trust, and that the Advisor or the Sub-Advisor may be or become interested in the Trust as a shareholder or otherwise. 7. Services to Other Companies or Accounts: The services of the Sub-Advisor to the Advisor are not to be deemed to be exclusive, the Sub-Advisor being free to render services to others and engage in other activities, provided, however, that such other services and activities do not, during the term of this Agreement, interfere, in a material manner, with the Sub-Advisor's ability to meet all of its obligations hereunder. The Sub-Advisor shall for all purposes be an independent contractor and not an agent or employee of the Advisor or the Trust. 8. Standard of Care: In the absence of willful misfeasance, bad faith, gross negligence or reckless disregard of obligations or duties hereunder on the part of the Sub-Advisor, the Sub-Advisor shall not be subject to liability to the Advisor, the Trust or to any shareholder of the Portfolio for any act or omission in the course of, or connected with, rendering services hereunder or for any losses that may be sustained in the purchase, holding or sale of any security. 9. Duration and Termination of Agreement; Amendments: (a) Subject to prior termination as provided in subparagraph (d) of this paragraph 9, this Agreement shall continue in force until July 31, 1996 and indefinitely thereafter, but only so long as the continuance after such period shall be specifically approved at least annually by vote of the Trust's Board of Trustees or by vote of a majority of the outstanding voting securities of the Portfolio. (b) This Agreement may be modified by mutual consent of the Advisor, the Sub-Advisor and the Portfolio, such consent on the part of the Portfolio to be authorized by vote of a majority of the outstanding voting securities of the Portfolio. (c) In addition to the requirements of subparagraphs (a) and (b) of this paragraph 9, the terms of any continuance or modification of this Agreement must have been approved by the vote of a majority of those Trustees of the Trust who are not parties to this Agreement or interested persons of any such party, cast in person at a meeting called for the purpose of voting on such approval. (d) Either the Advisor, the Sub-Advisor or the Portfolio may, at any time on sixty (60) days' prior written notice to the other parties, terminate this Agreement, without payment of any penalty, by action of its Board of Trustees or Directors, or with respect to the Portfolio by vote of a majority of its outstanding voting securities. This Agreement shall terminate automatically in the event of its assignment. 10. Limitation of Liability: The Sub-Advisor is hereby expressly put on notice of the limitation of shareholder liability as set forth in the Declaration of Trust or other organizational document of the Trust and agrees that any obligations of the Trust or the Portfolio arising in connection with this Agreement shall be limited in all cases to the Portfolio and its assets, and the Sub-Advisor shall not seek satisfaction of any such obligation from the shareholders or any shareholder of the Portfolio. Nor shall the Sub-Advisor seek satisfaction of any such obligation from the Trustees or any individual Trustee. 11. Governing Law: This Agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts, without giving effect to the choice of laws provisions thereof. The terms "registered investment company," "vote of a majority of the outstanding voting securities," "assignment," and "interested persons," when used herein, shall have the respective meanings specified in the 1940 Act as now in effect or as hereafter amended. IN WITNESS WHEREOF the parties hereto have caused this instrument to be signed in their behalf by their respective officers thereunto duly authorized, all as of the date written above. FIDELITY INVESTMENTS JAPAN LIMITED BY: /s/ Billy Wilder FIDELITY MANAGEMENT & RESEARCH COMPANY BY: /s/ J. Gary Burkhead J. Gary Burkhead President FIDELITY INVESTMENT TRUST on behalf of FIDELITY HONG KONG AND CHINA FUND BY: /s/ J. Gary Burkhead J. Gary Burkhead Senior Vice President EX-99.B6 10 Exhibit 6(m) GENERAL DISTRIBUTION AGREEMENT BETWEEN FIDELITY INVESTMENT TRUST AND FIDELITY DISTRIBUTORS CORPORATION Agreement made this 14th day of September 1995, between Fidelity Investment Trust, a Massachusetts business trust having its principal place of business in Boston, Massachusetts and which may issue one or more series of beneficial interest ("Issuer"), with respect to shares of Fidelity France Fund, a series of the Issuer, and Fidelity Distributors Corporation, a Massachusetts corporation having its principal place of business in Boston, Massachusetts ("Distributors"). In consideration of the mutual promises and undertakings herein contained, the parties agree as follows: 1. Sale of Shares - The Issuer grants to Distributors the right to sell shares on behalf of the Issuer during the term of this Agreement and subject to the registration requirements of the Securities Act of 1933, as amended ("1933 Act"), and of the laws governing the sale of securities in the various states ("Blue Sky Laws") under the following terms and conditions: Distributors (i) shall have the right to sell, as agent on behalf of the Issuer, shares authorized for issue and registered under the 1933 Act, and (ii) may sell shares under offers of exchange, if available, between and among the funds advised by Fidelity Management & Research Company ("FMR"). 2. Sale of Shares by the Issuer - The rights granted to Distributors shall be nonexclusive in that the Issuer reserves the right to sell its shares to investors on applications received and accepted by the Issuer. Further, the Issuer reserves the right to issue shares in connection with the merger or consolidation, or acquisition by the Issuer through purchase or otherwise, with any other investment company, trust, or personal holding company. 3. Shares Covered by this Agreement - This Agreement shall apply to unissued shares of the Issuer, shares of the Issuer held in its treasury in the event that in the discretion of the Issuer treasury shares shall be sold, and shares of the Issuer repurchased for resale. 4. Public Offering Price - Except as otherwise noted in the Issuer's current Prospectus and/or Statement of Additional Information, all shares sold to investors by Distributors or the Issuer will be sold at the public offering price. The public offering price for all accepted subscriptions will be the net asset value per share, as determined in the manner described in the Issuer's current Prospectus and/or Statement of Additional Information, plus a sales charge (if any) described in the Issuer's current Prospectus and/or Statement of Additional Information. The Issuer shall in all cases receive the net asset value per share on all sales. If a sales charge is in effect, Distributors shall have the right subject to such rules or regulations of the Securities and Exchange Commission as may then be in effect pursuant to Section 22 of the Investment Company Act of 1940 to pay a portion of the sales charge to dealers who have sold shares of the Issuer. If a fee in connection with shareholder redemptions is in effect, the Issuer shall collect the fee on behalf of Distributors and, unless otherwise agreed upon by the Issuer and Distributors, Distributors shall be entitled to receive all of such fees. 5. Suspension of Sales - If and whenever the determination of net asset value is suspended and until such suspension is terminated, no further orders for shares shall be processed by Distributors except such unconditional orders as may have been placed with Distributors before it had knowledge of the suspension. In addition, the Issuer reserves the right to suspend sales and Distributors' authority to process orders for shares on behalf of the Issuer if, in the judgment of the Issuer, it is in the best interests of the Issuer to do so. Suspension will continue for such period as may be determined by the Issuer. 6. Solicitation of Sales - In consideration of these rights granted to Distributors, Distributors agrees to use all reasonable efforts, consistent with its other business, to secure purchasers for shares of the Issuer. This shall not prevent Distributors from entering into like arrangements (including arrangements involving the payment of underwriting commissions) with other issuers. This does not obligate Distributors to register as a broker or dealer under the Blue Sky Laws of any jurisdiction in which it is not now registered or to maintain its registration in any jurisdiction in which it is now registered. If a sales charge is in effect, Distributors shall have the right to enter into sales agreements with dealers of its choice for the sale of shares of the Issuer to the public at the public offering price only and fix in such agreements the portion of the sales charge which may be retained by dealers, provided that the Issuer shall approve the form of the dealer agreement and the dealer discounts set forth therein and shall evidence such approval by filing said form of dealer agreement and amendments thereto as an exhibit to its currently effective Registration Statement under the 1933 Act. 7. Authorized Representations - Distributors is not authorized by the Issuer to give any information or to make any representations other than those contained in the appropriate registration statements or Prospectuses and Statements of Additional Information filed with the Securities and Exchange Commission under the 1933 Act (as these registration statements, Prospectuses and Statements of Additional Information may be amended from time to time), or contained in shareholder reports or other material that may be prepared by or on behalf of the Issuer for Distributors' use. This shall not be construed to prevent Distributors from preparing and distributing sales literature or other material as it may deem appropriate. 8. Portfolio Securities - Portfolio securities of the Issuer may be bought or sold by or through Distributors, and Distributors may participate directly or indirectly in brokerage commissions or "spreads" for transactions in portfolio securities of the Issuer. 9. Registration of Shares - The Issuer agrees that it will take all action necessary to register shares under the 1933 Act (subject to the necessary approval of its shareholders) so that there will be available for sale the number of shares Distributors may reasonably be expected to sell. The Issuer shall make available to Distributors such number of copies of its currently effective Prospectus and Statement of Additional Information as Distributors may reasonably request. The Issuer shall furnish to Distributors copies of all information, financial statements and other papers which Distributors may reasonably request for use in connection with the distribution of shares of the Issuer. 10. Expenses - The Issuer shall pay all fees and expenses (a) in connection with the preparation, setting in type and filing of any registration statement, Prospectus and Statement of Additional Information under the 1933 Act and amendments for the issue of its shares, (b) in connection with the registration and qualification of shares for sale in the various states in which the Board of Trustees of the Issuer shall determine it advisable to qualify such shares for sale (including registering the Issuer as a broker or dealer or any officer of the Issuer as agent or salesman in any state), (c) of preparing, setting in type, printing and mailing any report or other communication to shareholders of the Issuer in their capacity as such, and (d) of preparing, setting in type, printing and mailing Prospectuses, Statements of Additional Information and any supplements thereto sent to existing shareholders. 11. Indemnification - The Issuer agrees to indemnify and hold harmless Distributors and each of its directors and officers and each person, if any, who controls Distributors within the meaning of Section 15 of the 1933 Act against any loss, liability, claim, damages or expense (including the reasonable cost of investigating or defending any alleged loss, liability, claim, damages, or expense and reasonable counsel fees incurred in connection therewith) arising by reason of any person acquiring any shares, based upon the ground that the registration statement, Prospectus, Statement of Additional Information, shareholder reports or other information filed or made public by the Issuer (as from time to time amended) included an untrue statement of a material fact or omitted to state a material fact required to be stated or necessary in order to make the statements not misleading under the 1933 Act, or any other statute or the common law. However, the Issuer does not agree to indemnify Distributors or hold it harmless to the extent that the statement or omission was made in reliance upon, and in conformity with, information furnished to the Issuer by or on behalf of Distributors. In no case (i) is the indemnity of the Issuer in favor of Distributors or any person indemnified to be deemed to protect Distributors or any person against any liability to the Issuer or its security holders to which Distributors or such person would otherwise be subject by reason of willful misfeasance, bad faith or gross negligence in the performance of its duties or by reason of its reckless disregard of its obligations and duties under this Agreement, or (ii) is the Issuer to be liable under its indemnity agreement contained in this paragraph with respect to any claim made against Distributors or any person indemnified unless Distributors or person, as the case may be, shall have notified the Issuer in writing of the claim within a reasonable time after the summons or other first written notification giving information of the nature of the claim shall have been served upon Distributors or any such person (or after Distributors or such person shall have received notice of service on any designated agent). However, failure to notify the Issuer of any claim shall not relieve the Issuer from any liability which it may have to Distributors or any person against whom such action is brought otherwise than on account of its indemnity agreement contained in this paragraph. The Issuer shall be entitled to participate at its own expense in the defense, or, if it so elects, to assume the defense of any suit brought to enforce any claims, but if the Issuer elects to assume the defense, the defense shall be conducted by counsel chosen by it and satisfactory to Distributors or person or persons, defendant or defendants in the suit. In the event the Issuer elects to assume the defense of any suit and retain counsel, Distributors, officers or directors or controlling person or persons, defendant or defendants in the suit, shall bear the fees and expenses of any additional counsel retained by them. If the Issuer does not elect to assume the defense of any suit, it will reimburse Distributors, officers or directors or controlling person or persons, defendant or defendants in the suit, for the reasonable fees and expenses of any counsel retained by them. The Issuer agrees to notify Distributors promptly of the commencement of any litigation or proceedings against it or any of its officers or trustees in connection with the issuance or sale of any of the shares. Distributors also covenants and agrees that it will indemnify and hold harmless the Issuer and each of its Board members and officers and each person, if any, who controls the Issuer within the meaning of Section 15 of the 1933 Act, against any loss, liability, damages, claim or expense (including the reasonable cost of investigating or defending any alleged loss, liability, damages, claim or expense and reasonable counsel fees incurred in connection therewith) arising by reason of any person acquiring any shares, based upon the 1933 Act or any other statute or common law, alleging any wrongful act of Distributors or any of its employees or alleging that the registration statement, Prospectus, Statement of Additional Information, shareholder reports or other information filed or made public by the Issuer (as from time to time amended) included an untrue statement of a material fact or omitted to state a material fact required to be stated or necessary in order to make the statements not misleading, insofar as the statement or omission was made in reliance upon, and in conformity with information furnished to the Issuer by or on behalf of Distributors. In no case (i) is the indemnity of Distributors in favor of the Issuer or any person indemnified to be deemed to protect the Issuer or any person against any liability to which the Issuer or such person would otherwise be subject by reason of willful misfeasance, bad faith or gross negligence in the performance of its duties or by reason of its reckless disregard of its obligations and duties under this Agreement, or (ii) is Distributors to be liable under its indemnity agreement contained in this paragraph with respect to any claim made against the Issuer or any person indemnified unless the Issuer or person, as the case may be, shall have notified Distributors in writing of the claim within a reasonable time after the summons or other first written notification giving information of the nature of the claim shall have been served upon the Issuer or any such person (or after the Issuer or such person shall have received notice of service on any designated agent). However, failure to notify Distributors of any claim shall not relieve Distributors from any liability which it may have to the Issuer or any person against whom the action is brought otherwise than on account of its indemnity agreement contained in this paragraph. In the case of any notice to Distributors, it shall be entitled to participate, at its own expense, in the defense or, if it so elects, to assume the defense of any suit brought to enforce the claim, but if Distributors elects to assume the defense, the defense shall be conducted by counsel chosen by it and satisfactory to the Issuer, to its officers and Board and to any controlling person or persons, defendant or defendants in the suit. In the event that Distributors elects to assume the defense of any suit and retain counsel, the Issuer or controlling persons, defendant or defendants in the suit, shall bear the fees and expense of any additional counsel retained by them. If Distributors does not elect to assume the defense of any suit, it will reimburse the Issuer, officers and Board or controlling person or persons, defendant or defendants in the suit, for the reasonable fees and expenses of any counsel retained by them. Distributors agrees to notify the Issuer promptly of the commencement of any litigation or proceedings against it in connection with the issue and sale of any of the shares. 12. Effective Date - This agreement shall be effective upon its execution, and unless terminated as provided, shall continue in force until January 31, 1996 and thereafter from year to year, provided continuance is approved annually by the vote of a majority of the Board members of the Issuer, and by the vote of those Board members of the Issuer who are not "interested persons" of the Issuer and, if a plan under Rule 12b-1 under the Investment Company Act of 1940 is in effect, by the vote of those Board members of the Issuer who are not "interested persons" of the Issuer and who are not parties to the Distribution and Service Plan or this Agreement and have no financial interest in the operation of the Distribution and Service Plan or in any agreements related to the Distribution and Service Plan, cast in person at a meeting called for the purpose of voting on the approval. This Agreement shall automatically terminate in the event of its assignment. As used in this paragraph, the terms "assignment" and "interested persons" shall have the respective meanings specified in the Investment Company Act of 1940 as now in effect or as hereafter amended. In addition to termination by failure to approve continuance or by assignment, this Agreement may at any time be terminated by either party upon not less than sixty days' prior written notice to the other party. 13. Notice - Any notice required or permitted to be given by either party to the other shall be deemed sufficient if sent by registered or certified mail, postage prepaid, addressed by the party giving notice to the other party at the last address furnished by the other party to the party giving notice: if to the Issuer, at 82 Devonshire Street, Boston, Massachusetts, and if to Distributors, at 82 Devonshire Street, Boston, Massachusetts. 14. Limitation of Liability - Distributors is expressly put on notice of the limitation of shareholder liability as set forth in the Declaration of Trust or other organizational document of the Issuer and agrees that the obligations assumed by the Issuer under this contract shall be limited in all cases to the Issuer and its assets. Distributors shall not seek satisfaction of any such obligation from the shareholders or any shareholder of the Issuer. Nor shall Distributors seek satisfaction of any such obligation from the Trustees or any individual Trustee of the Issuer. Distributors understands that the rights and obligations of each series of shares of the Issuer under the Issuer's Declaration of Trust or other organizational document are separate and distinct from those of any and all other series. 15. This agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts, without giving effect to the choice of laws provisions thereof. IN WITNESS WHEREOF, the Issuer has executed this instrument in its name and behalf, and its seal affixed, by one of its officers duly authorized, and Distributors has executed this instrument in its name and behalf by one of its officers duly authorized, as of the day and year first above written. FIDELITY INVESTMENT TRUST By /s/ J. Gary Burkhead J. Gary Burkhead Senior Vice President FIDELITY DISTRIBUTORS CORPORATION By /s/ Kurt A. Lang Kurt A. Lang President EX-99.B6 11 Exhibit 6(n) GENERAL DISTRIBUTION AGREEMENT BETWEEN FIDELITY INVESTMENT TRUST AND FIDELITY DISTRIBUTORS CORPORATION Agreement made this 14th day of September, 1995, between Fidelity Investment Trust, a Massachusetts business trust having its principal place of business in Boston, Massachusetts and which may issue one or more series of beneficial interest ("Issuer"), with respect to shares of Fidelity Germany Fund, a series of the Issuer, and Fidelity Distributors Corporation, a Massachusetts corporation having its principal place of business in Boston, Massachusetts ("Distributors"). In consideration of the mutual promises and undertakings herein contained, the parties agree as follows: 1. Sale of Shares - The Issuer grants to Distributors the right to sell shares on behalf of the Issuer during the term of this Agreement and subject to the registration requirements of the Securities Act of 1933, as amended ("1933 Act"), and of the laws governing the sale of securities in the various states ("Blue Sky Laws") under the following terms and conditions: Distributors (i) shall have the right to sell, as agent on behalf of the Issuer, shares authorized for issue and registered under the 1933 Act, and (ii) may sell shares under offers of exchange, if available, between and among the funds advised by Fidelity Management & Research Company ("FMR"). 2. Sale of Shares by the Issuer - The rights granted to Distributors shall be nonexclusive in that the Issuer reserves the right to sell its shares to investors on applications received and accepted by the Issuer. Further, the Issuer reserves the right to issue shares in connection with the merger or consolidation, or acquisition by the Issuer through purchase or otherwise, with any other investment company, trust, or personal holding company. 3. Shares Covered by this Agreement - This Agreement shall apply to unissued shares of the Issuer, shares of the Issuer held in its treasury in the event that in the discretion of the Issuer treasury shares shall be sold, and shares of the Issuer repurchased for resale. 4. Public Offering Price - Except as otherwise noted in the Issuer's current Prospectus and/or Statement of Additional Information, all shares sold to investors by Distributors or the Issuer will be sold at the public offering price. The public offering price for all accepted subscriptions will be the net asset value per share, as determined in the manner described in the Issuer's current Prospectus and/or Statement of Additional Information, plus a sales charge (if any) described in the Issuer's current Prospectus and/or Statement of Additional Information. The Issuer shall in all cases receive the net asset value per share on all sales. If a sales charge is in effect, Distributors shall have the right subject to such rules or regulations of the Securities and Exchange Commission as may then be in effect pursuant to Section 22 of the Investment Company Act of 1940 to pay a portion of the sales charge to dealers who have sold shares of the Issuer. If a fee in connection with shareholder redemptions is in effect, the Issuer shall collect the fee on behalf of Distributors and, unless otherwise agreed upon by the Issuer and Distributors, Distributors shall be entitled to receive all of such fees. 5. Suspension of Sales - If and whenever the determination of net asset value is suspended and until such suspension is terminated, no further orders for shares shall be processed by Distributors except such unconditional orders as may have been placed with Distributors before it had knowledge of the suspension. In addition, the Issuer reserves the right to suspend sales and Distributors' authority to process orders for shares on behalf of the Issuer if, in the judgment of the Issuer, it is in the best interests of the Issuer to do so. Suspension will continue for such period as may be determined by the Issuer. 6. Solicitation of Sales - In consideration of these rights granted to Distributors, Distributors agrees to use all reasonable efforts, consistent with its other business, to secure purchasers for shares of the Issuer. This shall not prevent Distributors from entering into like arrangements (including arrangements involving the payment of underwriting commissions) with other issuers. This does not obligate Distributors to register as a broker or dealer under the Blue Sky Laws of any jurisdiction in which it is not now registered or to maintain its registration in any jurisdiction in which it is now registered. If a sales charge is in effect, Distributors shall have the right to enter into sales agreements with dealers of its choice for the sale of shares of the Issuer to the public at the public offering price only and fix in such agreements the portion of the sales charge which may be retained by dealers, provided that the Issuer shall approve the form of the dealer agreement and the dealer discounts set forth therein and shall evidence such approval by filing said form of dealer agreement and amendments thereto as an exhibit to its currently effective Registration Statement under the 1933 Act. 7. Authorized Representations - Distributors is not authorized by the Issuer to give any information or to make any representations other than those contained in the appropriate registration statements or Prospectuses and Statements of Additional Information filed with the Securities and Exchange Commission under the 1933 Act (as these registration statements, Prospectuses and Statements of Additional Information may be amended from time to time), or contained in shareholder reports or other material that may be prepared by or on behalf of the Issuer for Distributors' use. This shall not be construed to prevent Distributors from preparing and distributing sales literature or other material as it may deem appropriate. 8. Portfolio Securities - Portfolio securities of the Issuer may be bought or sold by or through Distributors, and Distributors may participate directly or indirectly in brokerage commissions or "spreads" for transactions in portfolio securities of the Issuer. 9. Registration of Shares - The Issuer agrees that it will take all action necessary to register shares under the 1933 Act (subject to the necessary approval of its shareholders) so that there will be available for sale the number of shares Distributors may reasonably be expected to sell. The Issuer shall make available to Distributors such number of copies of its currently effective Prospectus and Statement of Additional Information as Distributors may reasonably request. The Issuer shall furnish to Distributors copies of all information, financial statements and other papers which Distributors may reasonably request for use in connection with the distribution of shares of the Issuer. 10. Expenses - The Issuer shall pay all fees and expenses (a) in connection with the preparation, setting in type and filing of any registration statement, Prospectus and Statement of Additional Information under the 1933 Act and amendments for the issue of its shares, (b) in connection with the registration and qualification of shares for sale in the various states in which the Board of Trustees of the Issuer shall determine it advisable to qualify such shares for sale (including registering the Issuer as a broker or dealer or any officer of the Issuer as agent or salesman in any state), (c) of preparing, setting in type, printing and mailing any report or other communication to shareholders of the Issuer in their capacity as such, and (d) of preparing, setting in type, printing and mailing Prospectuses, Statements of Additional Information and any supplements thereto sent to existing shareholders. 11. Indemnification - The Issuer agrees to indemnify and hold harmless Distributors and each of its directors and officers and each person, if any, who controls Distributors within the meaning of Section 15 of the 1933 Act against any loss, liability, claim, damages or expense (including the reasonable cost of investigating or defending any alleged loss, liability, claim, damages, or expense and reasonable counsel fees incurred in connection therewith) arising by reason of any person acquiring any shares, based upon the ground that the registration statement, Prospectus, Statement of Additional Information, shareholder reports or other information filed or made public by the Issuer (as from time to time amended) included an untrue statement of a material fact or omitted to state a material fact required to be stated or necessary in order to make the statements not misleading under the 1933 Act, or any other statute or the common law. However, the Issuer does not agree to indemnify Distributors or hold it harmless to the extent that the statement or omission was made in reliance upon, and in conformity with, information furnished to the Issuer by or on behalf of Distributors. In no case (i) is the indemnity of the Issuer in favor of Distributors or any person indemnified to be deemed to protect Distributors or any person against any liability to the Issuer or its security holders to which Distributors or such person would otherwise be subject by reason of willful misfeasance, bad faith or gross negligence in the performance of its duties or by reason of its reckless disregard of its obligations and duties under this Agreement, or (ii) is the Issuer to be liable under its indemnity agreement contained in this paragraph with respect to any claim made against Distributors or any person indemnified unless Distributors or person, as the case may be, shall have notified the Issuer in writing of the claim within a reasonable time after the summons or other first written notification giving information of the nature of the claim shall have been served upon Distributors or any such person (or after Distributors or such person shall have received notice of service on any designated agent). However, failure to notify the Issuer of any claim shall not relieve the Issuer from any liability which it may have to Distributors or any person against whom such action is brought otherwise than on account of its indemnity agreement contained in this paragraph. The Issuer shall be entitled to participate at its own expense in the defense, or, if it so elects, to assume the defense of any suit brought to enforce any claims, but if the Issuer elects to assume the defense, the defense shall be conducted by counsel chosen by it and satisfactory to Distributors or person or persons, defendant or defendants in the suit. In the event the Issuer elects to assume the defense of any suit and retain counsel, Distributors, officers or directors or controlling person or persons, defendant or defendants in the suit, shall bear the fees and expenses of any additional counsel retained by them. If the Issuer does not elect to assume the defense of any suit, it will reimburse Distributors, officers or directors or controlling person or persons, defendant or defendants in the suit, for the reasonable fees and expenses of any counsel retained by them. The Issuer agrees to notify Distributors promptly of the commencement of any litigation or proceedings against it or any of its officers or trustees in connection with the issuance or sale of any of the shares. Distributors also covenants and agrees that it will indemnify and hold harmless the Issuer and each of its Board members and officers and each person, if any, who controls the Issuer within the meaning of Section 15 of the 1933 Act, against any loss, liability, damages, claim or expense (including the reasonable cost of investigating or defending any alleged loss, liability, damages, claim or expense and reasonable counsel fees incurred in connection therewith) arising by reason of any person acquiring any shares, based upon the 1933 Act or any other statute or common law, alleging any wrongful act of Distributors or any of its employees or alleging that the registration statement, Prospectus, Statement of Additional Information, shareholder reports or other information filed or made public by the Issuer (as from time to time amended) included an untrue statement of a material fact or omitted to state a material fact required to be stated or necessary in order to make the statements not misleading, insofar as the statement or omission was made in reliance upon, and in conformity with information furnished to the Issuer by or on behalf of Distributors. In no case (i) is the indemnity of Distributors in favor of the Issuer or any person indemnified to be deemed to protect the Issuer or any person against any liability to which the Issuer or such person would otherwise be subject by reason of willful misfeasance, bad faith or gross negligence in the performance of its duties or by reason of its reckless disregard of its obligations and duties under this Agreement, or (ii) is Distributors to be liable under its indemnity agreement contained in this paragraph with respect to any claim made against the Issuer or any person indemnified unless the Issuer or person, as the case may be, shall have notified Distributors in writing of the claim within a reasonable time after the summons or other first written notification giving information of the nature of the claim shall have been served upon the Issuer or any such person (or after the Issuer or such person shall have received notice of service on any designated agent). However, failure to notify Distributors of any claim shall not relieve Distributors from any liability which it may have to the Issuer or any person against whom the action is brought otherwise than on account of its indemnity agreement contained in this paragraph. In the case of any notice to Distributors, it shall be entitled to participate, at its own expense, in the defense or, if it so elects, to assume the defense of any suit brought to enforce the claim, but if Distributors elects to assume the defense, the defense shall be conducted by counsel chosen by it and satisfactory to the Issuer, to its officers and Board and to any controlling person or persons, defendant or defendants in the suit. In the event that Distributors elects to assume the defense of any suit and retain counsel, the Issuer or controlling persons, defendant or defendants in the suit, shall bear the fees and expense of any additional counsel retained by them. If Distributors does not elect to assume the defense of any suit, it will reimburse the Issuer, officers and Board or controlling person or persons, defendant or defendants in the suit, for the reasonable fees and expenses of any counsel retained by them. Distributors agrees to notify the Issuer promptly of the commencement of any litigation or proceedings against it in connection with the issue and sale of any of the shares. 12. Effective Date - This agreement shall be effective upon its execution, and unless terminated as provided, shall continue in force until January 31, 1996 and thereafter from year to year, provided continuance is approved annually by the vote of a majority of the Board members of the Issuer, and by the vote of those Board members of the Issuer who are not "interested persons" of the Issuer and, if a plan under Rule 12b-1 under the Investment Company Act of 1940 is in effect, by the vote of those Board members of the Issuer who are not "interested persons" of the Issuer and who are not parties to the Distribution and Service Plan or this Agreement and have no financial interest in the operation of the Distribution and Service Plan or in any agreements related to the Distribution and Service Plan, cast in person at a meeting called for the purpose of voting on the approval. This Agreement shall automatically terminate in the event of its assignment. As used in this paragraph, the terms "assignment" and "interested persons" shall have the respective meanings specified in the Investment Company Act of 1940 as now in effect or as hereafter amended. In addition to termination by failure to approve continuance or by assignment, this Agreement may at any time be terminated by either party upon not less than sixty days' prior written notice to the other party. 13. Notice - Any notice required or permitted to be given by either party to the other shall be deemed sufficient if sent by registered or certified mail, postage prepaid, addressed by the party giving notice to the other party at the last address furnished by the other party to the party giving notice: if to the Issuer, at 82 Devonshire Street, Boston, Massachusetts, and if to Distributors, at 82 Devonshire Street, Boston, Massachusetts. 14. Limitation of Liability - Distributors is expressly put on notice of the limitation of shareholder liability as set forth in the Declaration of Trust or other organizational document of the Issuer and agrees that the obligations assumed by the Issuer under this contract shall be limited in all cases to the Issuer and its assets. Distributors shall not seek satisfaction of any such obligation from the shareholders or any shareholder of the Issuer. Nor shall Distributors seek satisfaction of any such obligation from the Trustees or any individual Trustee of the Issuer. Distributors understands that the rights and obligations of each series of shares of the Issuer under the Issuer's Declaration of Trust or other organizational document are separate and distinct from those of any and all other series. 15. This agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts, without giving effect to the choice of laws provisions thereof. IN WITNESS WHEREOF, the Issuer has executed this instrument in its name and behalf, and its seal affixed, by one of its officers duly authorized, and Distributors has executed this instrument in its name and behalf by one of its officers duly authorized, as of the day and year first above written. FIDELITY INVESTMENT TRUST By /s/ J. Gary Burkhead J. Gary Burkhead Senor Vice President FIDELITY DISTRIBUTORS CORPORATION By /s/ Kurt A. Lang Kurt A. Lang President EX-99.B6 12 Exhibit 6(o) GENERAL DISTRIBUTION AGREEMENT BETWEEN FIDELITY INVESTMENT TRUST AND FIDELITY DISTRIBUTORS CORPORATION Agreement made this 14th day of September, 1995, between Fidelity Investment Trust, a Massachusetts business trust having its principal place of business in Boston, Massachusetts and which may issue one or more series of beneficial interest ("Issuer"), with respect to shares of Fidelity United Kingdom Fund, a series of the Issuer, and Fidelity Distributors Corporation, a Massachusetts corporation having its principal place of business in Boston, Massachusetts ("Distributors"). In consideration of the mutual promises and undertakings herein contained, the parties agree as follows: 1. Sale of Shares - The Issuer grants to Distributors the right to sell shares on behalf of the Issuer during the term of this Agreement and subject to the registration requirements of the Securities Act of 1933, as amended ("1933 Act"), and of the laws governing the sale of securities in the various states ("Blue Sky Laws") under the following terms and conditions: Distributors (i) shall have the right to sell, as agent on behalf of the Issuer, shares authorized for issue and registered under the 1933 Act, and (ii) may sell shares under offers of exchange, if available, between and among the funds advised by Fidelity Management & Research Company ("FMR"). 2. Sale of Shares by the Issuer - The rights granted to Distributors shall be nonexclusive in that the Issuer reserves the right to sell its shares to investors on applications received and accepted by the Issuer. Further, the Issuer reserves the right to issue shares in connection with the merger or consolidation, or acquisition by the Issuer through purchase or otherwise, with any other investment company, trust, or personal holding company. 3. Shares Covered by this Agreement - This Agreement shall apply to unissued shares of the Issuer, shares of the Issuer held in its treasury in the event that in the discretion of the Issuer treasury shares shall be sold, and shares of the Issuer repurchased for resale. 4. Public Offering Price - Except as otherwise noted in the Issuer's current Prospectus and/or Statement of Additional Information, all shares sold to investors by Distributors or the Issuer will be sold at the public offering price. The public offering price for all accepted subscriptions will be the net asset value per share, as determined in the manner described in the Issuer's current Prospectus and/or Statement of Additional Information, plus a sales charge (if any) described in the Issuer's current Prospectus and/or Statement of Additional Information. The Issuer shall in all cases receive the net asset value per share on all sales. If a sales charge is in effect, Distributors shall have the right subject to such rules or regulations of the Securities and Exchange Commission as may then be in effect pursuant to Section 22 of the Investment Company Act of 1940 to pay a portion of the sales charge to dealers who have sold shares of the Issuer. If a fee in connection with shareholder redemptions is in effect, the Issuer shall collect the fee on behalf of Distributors and, unless otherwise agreed upon by the Issuer and Distributors, Distributors shall be entitled to receive all of such fees. 5. Suspension of Sales - If and whenever the determination of net asset value is suspended and until such suspension is terminated, no further orders for shares shall be processed by Distributors except such unconditional orders as may have been placed with Distributors before it had knowledge of the suspension. In addition, the Issuer reserves the right to suspend sales and Distributors' authority to process orders for shares on behalf of the Issuer if, in the judgment of the Issuer, it is in the best interests of the Issuer to do so. Suspension will continue for such period as may be determined by the Issuer. 6. Solicitation of Sales - In consideration of these rights granted to Distributors, Distributors agrees to use all reasonable efforts, consistent with its other business, to secure purchasers for shares of the Issuer. This shall not prevent Distributors from entering into like arrangements (including arrangements involving the payment of underwriting commissions) with other issuers. This does not obligate Distributors to register as a broker or dealer under the Blue Sky Laws of any jurisdiction in which it is not now registered or to maintain its registration in any jurisdiction in which it is now registered. If a sales charge is in effect, Distributors shall have the right to enter into sales agreements with dealers of its choice for the sale of shares of the Issuer to the public at the public offering price only and fix in such agreements the portion of the sales charge which may be retained by dealers, provided that the Issuer shall approve the form of the dealer agreement and the dealer discounts set forth therein and shall evidence such approval by filing said form of dealer agreement and amendments thereto as an exhibit to its currently effective Registration Statement under the 1933 Act. 7. Authorized Representations - Distributors is not authorized by the Issuer to give any information or to make any representations other than those contained in the appropriate registration statements or Prospectuses and Statements of Additional Information filed with the Securities and Exchange Commission under the 1933 Act (as these registration statements, Prospectuses and Statements of Additional Information may be amended from time to time), or contained in shareholder reports or other material that may be prepared by or on behalf of the Issuer for Distributors' use. This shall not be construed to prevent Distributors from preparing and distributing sales literature or other material as it may deem appropriate. 8. Portfolio Securities - Portfolio securities of the Issuer may be bought or sold by or through Distributors, and Distributors may participate directly or indirectly in brokerage commissions or "spreads" for transactions in portfolio securities of the Issuer. 9. Registration of Shares - The Issuer agrees that it will take all action necessary to register shares under the 1933 Act (subject to the necessary approval of its shareholders) so that there will be available for sale the number of shares Distributors may reasonably be expected to sell. The Issuer shall make available to Distributors such number of copies of its currently effective Prospectus and Statement of Additional Information as Distributors may reasonably request. The Issuer shall furnish to Distributors copies of all information, financial statements and other papers which Distributors may reasonably request for use in connection with the distribution of shares of the Issuer. 10. Expenses - The Issuer shall pay all fees and expenses (a) in connection with the preparation, setting in type and filing of any registration statement, Prospectus and Statement of Additional Information under the 1933 Act and amendments for the issue of its shares, (b) in connection with the registration and qualification of shares for sale in the various states in which the Board of Trustees of the Issuer shall determine it advisable to qualify such shares for sale (including registering the Issuer as a broker or dealer or any officer of the Issuer as agent or salesman in any state), (c) of preparing, setting in type, printing and mailing any report or other communication to shareholders of the Issuer in their capacity as such, and (d) of preparing, setting in type, printing and mailing Prospectuses, Statements of Additional Information and any supplements thereto sent to existing shareholders. 11. Indemnification - The Issuer agrees to indemnify and hold harmless Distributors and each of its directors and officers and each person, if any, who controls Distributors within the meaning of Section 15 of the 1933 Act against any loss, liability, claim, damages or expense (including the reasonable cost of investigating or defending any alleged loss, liability, claim, damages, or expense and reasonable counsel fees incurred in connection therewith) arising by reason of any person acquiring any shares, based upon the ground that the registration statement, Prospectus, Statement of Additional Information, shareholder reports or other information filed or made public by the Issuer (as from time to time amended) included an untrue statement of a material fact or omitted to state a material fact required to be stated or necessary in order to make the statements not misleading under the 1933 Act, or any other statute or the common law. However, the Issuer does not agree to indemnify Distributors or hold it harmless to the extent that the statement or omission was made in reliance upon, and in conformity with, information furnished to the Issuer by or on behalf of Distributors. In no case (i) is the indemnity of the Issuer in favor of Distributors or any person indemnified to be deemed to protect Distributors or any person against any liability to the Issuer or its security holders to which Distributors or such person would otherwise be subject by reason of willful misfeasance, bad faith or gross negligence in the performance of its duties or by reason of its reckless disregard of its obligations and duties under this Agreement, or (ii) is the Issuer to be liable under its indemnity agreement contained in this paragraph with respect to any claim made against Distributors or any person indemnified unless Distributors or person, as the case may be, shall have notified the Issuer in writing of the claim within a reasonable time after the summons or other first written notification giving information of the nature of the claim shall have been served upon Distributors or any such person (or after Distributors or such person shall have received notice of service on any designated agent). However, failure to notify the Issuer of any claim shall not relieve the Issuer from any liability which it may have to Distributors or any person against whom such action is brought otherwise than on account of its indemnity agreement contained in this paragraph. The Issuer shall be entitled to participate at its own expense in the defense, or, if it so elects, to assume the defense of any suit brought to enforce any claims, but if the Issuer elects to assume the defense, the defense shall be conducted by counsel chosen by it and satisfactory to Distributors or person or persons, defendant or defendants in the suit. In the event the Issuer elects to assume the defense of any suit and retain counsel, Distributors, officers or directors or controlling person or persons, defendant or defendants in the suit, shall bear the fees and expenses of any additional counsel retained by them. If the Issuer does not elect to assume the defense of any suit, it will reimburse Distributors, officers or directors or controlling person or persons, defendant or defendants in the suit, for the reasonable fees and expenses of any counsel retained by them. The Issuer agrees to notify Distributors promptly of the commencement of any litigation or proceedings against it or any of its officers or trustees in connection with the issuance or sale of any of the shares. Distributors also covenants and agrees that it will indemnify and hold harmless the Issuer and each of its Board members and officers and each person, if any, who controls the Issuer within the meaning of Section 15 of the 1933 Act, against any loss, liability, damages, claim or expense (including the reasonable cost of investigating or defending any alleged loss, liability, damages, claim or expense and reasonable counsel fees incurred in connection therewith) arising by reason of any person acquiring any shares, based upon the 1933 Act or any other statute or common law, alleging any wrongful act of Distributors or any of its employees or alleging that the registration statement, Prospectus, Statement of Additional Information, shareholder reports or other information filed or made public by the Issuer (as from time to time amended) included an untrue statement of a material fact or omitted to state a material fact required to be stated or necessary in order to make the statements not misleading, insofar as the statement or omission was made in reliance upon, and in conformity with information furnished to the Issuer by or on behalf of Distributors. In no case (i) is the indemnity of Distributors in favor of the Issuer or any person indemnified to be deemed to protect the Issuer or any person against any liability to which the Issuer or such person would otherwise be subject by reason of willful misfeasance, bad faith or gross negligence in the performance of its duties or by reason of its reckless disregard of its obligations and duties under this Agreement, or (ii) is Distributors to be liable under its indemnity agreement contained in this paragraph with respect to any claim made against the Issuer or any person indemnified unless the Issuer or person, as the case may be, shall have notified Distributors in writing of the claim within a reasonable time after the summons or other first written notification giving information of the nature of the claim shall have been served upon the Issuer or any such person (or after the Issuer or such person shall have received notice of service on any designated agent). However, failure to notify Distributors of any claim shall not relieve Distributors from any liability which it may have to the Issuer or any person against whom the action is brought otherwise than on account of its indemnity agreement contained in this paragraph. In the case of any notice to Distributors, it shall be entitled to participate, at its own expense, in the defense or, if it so elects, to assume the defense of any suit brought to enforce the claim, but if Distributors elects to assume the defense, the defense shall be conducted by counsel chosen by it and satisfactory to the Issuer, to its officers and Board and to any controlling person or persons, defendant or defendants in the suit. In the event that Distributors elects to assume the defense of any suit and retain counsel, the Issuer or controlling persons, defendant or defendants in the suit, shall bear the fees and expense of any additional counsel retained by them. If Distributors does not elect to assume the defense of any suit, it will reimburse the Issuer, officers and Board or controlling person or persons, defendant or defendants in the suit, for the reasonable fees and expenses of any counsel retained by them. Distributors agrees to notify the Issuer promptly of the commencement of any litigation or proceedings against it in connection with the issue and sale of any of the shares. 12. Effective Date - This agreement shall be effective upon its execution, and unless terminated as provided, shall continue in force until January 31, 1996 and thereafter from year to year, provided continuance is approved annually by the vote of a majority of the Board members of the Issuer, and by the vote of those Board members of the Issuer who are not "interested persons" of the Issuer and, if a plan under Rule 12b-1 under the Investment Company Act of 1940 is in effect, by the vote of those Board members of the Issuer who are not "interested persons" of the Issuer and who are not parties to the Distribution and Service Plan or this Agreement and have no financial interest in the operation of the Distribution and Service Plan or in any agreements related to the Distribution and Service Plan, cast in person at a meeting called for the purpose of voting on the approval. This Agreement shall automatically terminate in the event of its assignment. As used in this paragraph, the terms "assignment" and "interested persons" shall have the respective meanings specified in the Investment Company Act of 1940 as now in effect or as hereafter amended. In addition to termination by failure to approve continuance or by assignment, this Agreement may at any time be terminated by either party upon not less than sixty days' prior written notice to the other party. 13. Notice - Any notice required or permitted to be given by either party to the other shall be deemed sufficient if sent by registered or certified mail, postage prepaid, addressed by the party giving notice to the other party at the last address furnished by the other party to the party giving notice: if to the Issuer, at 82 Devonshire Street, Boston, Massachusetts, and if to Distributors, at 82 Devonshire Street, Boston, Massachusetts. 14. Limitation of Liability - Distributors is expressly put on notice of the limitation of shareholder liability as set forth in the Declaration of Trust or other organizational document of the Issuer and agrees that the obligations assumed by the Issuer under this contract shall be limited in all cases to the Issuer and its assets. Distributors shall not seek satisfaction of any such obligation from the shareholders or any shareholder of the Issuer. Nor shall Distributors seek satisfaction of any such obligation from the Trustees or any individual Trustee of the Issuer. Distributors understands that the rights and obligations of each series of shares of the Issuer under the Issuer's Declaration of Trust or other organizational document are separate and distinct from those of any and all other series. 15. This agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts, without giving effect to the choice of laws provisions thereof. IN WITNESS WHEREOF, the Issuer has executed this instrument in its name and behalf, and its seal affixed, by one of its officers duly authorized, and Distributors has executed this instrument in its name and behalf by one of its officers duly authorized, as of the day and year first above written. FIDELITY INVESTMENT TRUST By /s/ J. Gary Burkhead J. Gary Burkhead Senior Vice President FIDELITY DISTRIBUTORS CORPORATION By /s/ Kurt A. Lang Kurt A. Lang President EX-99.B6 13 Exhibit 6(p) GENERAL DISTRIBUTION AGREEMENT BETWEEN FIDELITY INVESTMENT TRUST AND FIDELITY DISTRIBUTORS CORPORATION Agreement made this 14th day of September, 1995, between Fidelity Investment Trust, a Massachusetts business trust having its principal place of business in Boston, Massachusetts and which may issue one or more series of beneficial interest ("Issuer"), with respect to shares of Fidelity Japan Small Companies Fund, a series of the Issuer, and Fidelity Distributors Corporation, a Massachusetts corporation having its principal place of business in Boston, Massachusetts ("Distributors"). In consideration of the mutual promises and undertakings herein contained, the parties agree as follows: 1. Sale of Shares - The Issuer grants to Distributors the right to sell shares on behalf of the Issuer during the term of this Agreement and subject to the registration requirements of the Securities Act of 1933, as amended ("1933 Act"), and of the laws governing the sale of securities in the various states ("Blue Sky Laws") under the following terms and conditions: Distributors (i) shall have the right to sell, as agent on behalf of the Issuer, shares authorized for issue and registered under the 1933 Act, and (ii) may sell shares under offers of exchange, if available, between and among the funds advised by Fidelity Management & Research Company ("FMR"). 2. Sale of Shares by the Issuer - The rights granted to Distributors shall be nonexclusive in that the Issuer reserves the right to sell its shares to investors on applications received and accepted by the Issuer. Further, the Issuer reserves the right to issue shares in connection with the merger or consolidation, or acquisition by the Issuer through purchase or otherwise, with any other investment company, trust, or personal holding company. 3. Shares Covered by this Agreement - This Agreement shall apply to unissued shares of the Issuer, shares of the Issuer held in its treasury in the event that in the discretion of the Issuer treasury shares shall be sold, and shares of the Issuer repurchased for resale. 4. Public Offering Price - Except as otherwise noted in the Issuer's current Prospectus and/or Statement of Additional Information, all shares sold to investors by Distributors or the Issuer will be sold at the public offering price. The public offering price for all accepted subscriptions will be the net asset value per share, as determined in the manner described in the Issuer's current Prospectus and/or Statement of Additional Information, plus a sales charge (if any) described in the Issuer's current Prospectus and/or Statement of Additional Information. The Issuer shall in all cases receive the net asset value per share on all sales. If a sales charge is in effect, Distributors shall have the right subject to such rules or regulations of the Securities and Exchange Commission as may then be in effect pursuant to Section 22 of the Investment Company Act of 1940 to pay a portion of the sales charge to dealers who have sold shares of the Issuer. If a fee in connection with shareholder redemptions is in effect, the Issuer shall collect the fee on behalf of Distributors and, unless otherwise agreed upon by the Issuer and Distributors, Distributors shall be entitled to receive all of such fees. 5. Suspension of Sales - If and whenever the determination of net asset value is suspended and until such suspension is terminated, no further orders for shares shall be processed by Distributors except such unconditional orders as may have been placed with Distributors before it had knowledge of the suspension. In addition, the Issuer reserves the right to suspend sales and Distributors' authority to process orders for shares on behalf of the Issuer if, in the judgment of the Issuer, it is in the best interests of the Issuer to do so. Suspension will continue for such period as may be determined by the Issuer. 6. Solicitation of Sales - In consideration of these rights granted to Distributors, Distributors agrees to use all reasonable efforts, consistent with its other business, to secure purchasers for shares of the Issuer. This shall not prevent Distributors from entering into like arrangements (including arrangements involving the payment of underwriting commissions) with other issuers. This does not obligate Distributors to register as a broker or dealer under the Blue Sky Laws of any jurisdiction in which it is not now registered or to maintain its registration in any jurisdiction in which it is now registered. If a sales charge is in effect, Distributors shall have the right to enter into sales agreements with dealers of its choice for the sale of shares of the Issuer to the public at the public offering price only and fix in such agreements the portion of the sales charge which may be retained by dealers, provided that the Issuer shall approve the form of the dealer agreement and the dealer discounts set forth therein and shall evidence such approval by filing said form of dealer agreement and amendments thereto as an exhibit to its currently effective Registration Statement under the 1933 Act. 7. Authorized Representations - Distributors is not authorized by the Issuer to give any information or to make any representations other than those contained in the appropriate registration statements or Prospectuses and Statements of Additional Information filed with the Securities and Exchange Commission under the 1933 Act (as these registration statements, Prospectuses and Statements of Additional Information may be amended from time to time), or contained in shareholder reports or other material that may be prepared by or on behalf of the Issuer for Distributors' use. This shall not be construed to prevent Distributors from preparing and distributing sales literature or other material as it may deem appropriate. 8. Portfolio Securities - Portfolio securities of the Issuer may be bought or sold by or through Distributors, and Distributors may participate directly or indirectly in brokerage commissions or "spreads" for transactions in portfolio securities of the Issuer. 9. Registration of Shares - The Issuer agrees that it will take all action necessary to register shares under the 1933 Act (subject to the necessary approval of its shareholders) so that there will be available for sale the number of shares Distributors may reasonably be expected to sell. The Issuer shall make available to Distributors such number of copies of its currently effective Prospectus and Statement of Additional Information as Distributors may reasonably request. The Issuer shall furnish to Distributors copies of all information, financial statements and other papers which Distributors may reasonably request for use in connection with the distribution of shares of the Issuer. 10. Expenses - The Issuer shall pay all fees and expenses (a) in connection with the preparation, setting in type and filing of any registration statement, Prospectus and Statement of Additional Information under the 1933 Act and amendments for the issue of its shares, (b) in connection with the registration and qualification of shares for sale in the various states in which the Board of Trustees of the Issuer shall determine it advisable to qualify such shares for sale (including registering the Issuer as a broker or dealer or any officer of the Issuer as agent or salesman in any state), (c) of preparing, setting in type, printing and mailing any report or other communication to shareholders of the Issuer in their capacity as such, and (d) of preparing, setting in type, printing and mailing Prospectuses, Statements of Additional Information and any supplements thereto sent to existing shareholders. 11. Indemnification - The Issuer agrees to indemnify and hold harmless Distributors and each of its directors and officers and each person, if any, who controls Distributors within the meaning of Section 15 of the 1933 Act against any loss, liability, claim, damages or expense (including the reasonable cost of investigating or defending any alleged loss, liability, claim, damages, or expense and reasonable counsel fees incurred in connection therewith) arising by reason of any person acquiring any shares, based upon the ground that the registration statement, Prospectus, Statement of Additional Information, shareholder reports or other information filed or made public by the Issuer (as from time to time amended) included an untrue statement of a material fact or omitted to state a material fact required to be stated or necessary in order to make the statements not misleading under the 1933 Act, or any other statute or the common law. However, the Issuer does not agree to indemnify Distributors or hold it harmless to the extent that the statement or omission was made in reliance upon, and in conformity with, information furnished to the Issuer by or on behalf of Distributors. In no case (i) is the indemnity of the Issuer in favor of Distributors or any person indemnified to be deemed to protect Distributors or any person against any liability to the Issuer or its security holders to which Distributors or such person would otherwise be subject by reason of willful misfeasance, bad faith or gross negligence in the performance of its duties or by reason of its reckless disregard of its obligations and duties under this Agreement, or (ii) is the Issuer to be liable under its indemnity agreement contained in this paragraph with respect to any claim made against Distributors or any person indemnified unless Distributors or person, as the case may be, shall have notified the Issuer in writing of the claim within a reasonable time after the summons or other first written notification giving information of the nature of the claim shall have been served upon Distributors or any such person (or after Distributors or such person shall have received notice of service on any designated agent). However, failure to notify the Issuer of any claim shall not relieve the Issuer from any liability which it may have to Distributors or any person against whom such action is brought otherwise than on account of its indemnity agreement contained in this paragraph. The Issuer shall be entitled to participate at its own expense in the defense, or, if it so elects, to assume the defense of any suit brought to enforce any claims, but if the Issuer elects to assume the defense, the defense shall be conducted by counsel chosen by it and satisfactory to Distributors or person or persons, defendant or defendants in the suit. In the event the Issuer elects to assume the defense of any suit and retain counsel, Distributors, officers or directors or controlling person or persons, defendant or defendants in the suit, shall bear the fees and expenses of any additional counsel retained by them. If the Issuer does not elect to assume the defense of any suit, it will reimburse Distributors, officers or directors or controlling person or persons, defendant or defendants in the suit, for the reasonable fees and expenses of any counsel retained by them. The Issuer agrees to notify Distributors promptly of the commencement of any litigation or proceedings against it or any of its officers or trustees in connection with the issuance or sale of any of the shares. Distributors also covenants and agrees that it will indemnify and hold harmless the Issuer and each of its Board members and officers and each person, if any, who controls the Issuer within the meaning of Section 15 of the 1933 Act, against any loss, liability, damages, claim or expense (including the reasonable cost of investigating or defending any alleged loss, liability, damages, claim or expense and reasonable counsel fees incurred in connection therewith) arising by reason of any person acquiring any shares, based upon the 1933 Act or any other statute or common law, alleging any wrongful act of Distributors or any of its employees or alleging that the registration statement, Prospectus, Statement of Additional Information, shareholder reports or other information filed or made public by the Issuer (as from time to time amended) included an untrue statement of a material fact or omitted to state a material fact required to be stated or necessary in order to make the statements not misleading, insofar as the statement or omission was made in reliance upon, and in conformity with information furnished to the Issuer by or on behalf of Distributors. In no case (i) is the indemnity of Distributors in favor of the Issuer or any person indemnified to be deemed to protect the Issuer or any person against any liability to which the Issuer or such person would otherwise be subject by reason of willful misfeasance, bad faith or gross negligence in the performance of its duties or by reason of its reckless disregard of its obligations and duties under this Agreement, or (ii) is Distributors to be liable under its indemnity agreement contained in this paragraph with respect to any claim made against the Issuer or any person indemnified unless the Issuer or person, as the case may be, shall have notified Distributors in writing of the claim within a reasonable time after the summons or other first written notification giving information of the nature of the claim shall have been served upon the Issuer or any such person (or after the Issuer or such person shall have received notice of service on any designated agent). However, failure to notify Distributors of any claim shall not relieve Distributors from any liability which it may have to the Issuer or any person against whom the action is brought otherwise than on account of its indemnity agreement contained in this paragraph. In the case of any notice to Distributors, it shall be entitled to participate, at its own expense, in the defense or, if it so elects, to assume the defense of any suit brought to enforce the claim, but if Distributors elects to assume the defense, the defense shall be conducted by counsel chosen by it and satisfactory to the Issuer, to its officers and Board and to any controlling person or persons, defendant or defendants in the suit. In the event that Distributors elects to assume the defense of any suit and retain counsel, the Issuer or controlling persons, defendant or defendants in the suit, shall bear the fees and expense of any additional counsel retained by them. If Distributors does not elect to assume the defense of any suit, it will reimburse the Issuer, officers and Board or controlling person or persons, defendant or defendants in the suit, for the reasonable fees and expenses of any counsel retained by them. Distributors agrees to notify the Issuer promptly of the commencement of any litigation or proceedings against it in connection with the issue and sale of any of the shares. 12. Effective Date - This agreement shall be effective upon its execution, and unless terminated as provided, shall continue in force until January 31, 1996 and thereafter from year to year, provided continuance is approved annually by the vote of a majority of the Board members of the Issuer, and by the vote of those Board members of the Issuer who are not "interested persons" of the Issuer and, if a plan under Rule 12b-1 under the Investment Company Act of 1940 is in effect, by the vote of those Board members of the Issuer who are not "interested persons" of the Issuer and who are not parties to the Distribution and Service Plan or this Agreement and have no financial interest in the operation of the Distribution and Service Plan or in any agreements related to the Distribution and Service Plan, cast in person at a meeting called for the purpose of voting on the approval. This Agreement shall automatically terminate in the event of its assignment. As used in this paragraph, the terms "assignment" and "interested persons" shall have the respective meanings specified in the Investment Company Act of 1940 as now in effect or as hereafter amended. In addition to termination by failure to approve continuance or by assignment, this Agreement may at any time be terminated by either party upon not less than sixty days' prior written notice to the other party. 13. Notice - Any notice required or permitted to be given by either party to the other shall be deemed sufficient if sent by registered or certified mail, postage prepaid, addressed by the party giving notice to the other party at the last address furnished by the other party to the party giving notice: if to the Issuer, at 82 Devonshire Street, Boston, Massachusetts, and if to Distributors, at 82 Devonshire Street, Boston, Massachusetts. 14. Limitation of Liability - Distributors is expressly put on notice of the limitation of shareholder liability as set forth in the Declaration of Trust or other organizational document of the Issuer and agrees that the obligations assumed by the Issuer under this contract shall be limited in all cases to the Issuer and its assets. Distributors shall not seek satisfaction of any such obligation from the shareholders or any shareholder of the Issuer. Nor shall Distributors seek satisfaction of any such obligation from the Trustees or any individual Trustee of the Issuer. Distributors understands that the rights and obligations of each series of shares of the Issuer under the Issuer's Declaration of Trust or other organizational document are separate and distinct from those of any and all other series. 15. This agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts, without giving effect to the choice of laws provisions thereof. IN WITNESS WHEREOF, the Issuer has executed this instrument in its name and behalf, and its seal affixed, by one of its officers duly authorized, and Distributors has executed this instrument in its name and behalf by one of its officers duly authorized, as of the day and year first above written. FIDELITY INVESTMENT TRUST By /s/ J. Gary Burkhead J. Gary Burkhead Senior Vice President FIDELITY DISTRIBUTORS CORPORATION By /s/ Kurt A. Lang Kurt A. Lang President EX-99.B6 14 Exhibit 6(q) GENERAL DISTRIBUTION AGREEMENT BETWEEN FIDELITY INVESTMENT TRUST AND FIDELITY DISTRIBUTORS CORPORATION Agreement made this 14th day of September, 1995, between Fidelity Investment Trust, a Massachusetts business trust having its principal place of business in Boston, Massachusetts and which may issue one or more series of beneficial interest ("Issuer"), with respect to shares of Fidelity Hong Kong and China Fund, a series of the Issuer, and Fidelity Distributors Corporation, a Massachusetts corporation having its principal place of business in Boston, Massachusetts ("Distributors"). In consideration of the mutual promises and undertakings herein contained, the parties agree as follows: 1. Sale of Shares - The Issuer grants to Distributors the right to sell shares on behalf of the Issuer during the term of this Agreement and subject to the registration requirements of the Securities Act of 1933, as amended ("1933 Act"), and of the laws governing the sale of securities in the various states ("Blue Sky Laws") under the following terms and conditions: Distributors (i) shall have the right to sell, as agent on behalf of the Issuer, shares authorized for issue and registered under the 1933 Act, and (ii) may sell shares under offers of exchange, if available, between and among the funds advised by Fidelity Management & Research Company ("FMR"). 2. Sale of Shares by the Issuer - The rights granted to Distributors shall be nonexclusive in that the Issuer reserves the right to sell its shares to investors on applications received and accepted by the Issuer. Further, the Issuer reserves the right to issue shares in connection with the merger or consolidation, or acquisition by the Issuer through purchase or otherwise, with any other investment company, trust, or personal holding company. 3. Shares Covered by this Agreement - This Agreement shall apply to unissued shares of the Issuer, shares of the Issuer held in its treasury in the event that in the discretion of the Issuer treasury shares shall be sold, and shares of the Issuer repurchased for resale. 4. Public Offering Price - Except as otherwise noted in the Issuer's current Prospectus and/or Statement of Additional Information, all shares sold to investors by Distributors or the Issuer will be sold at the public offering price. The public offering price for all accepted subscriptions will be the net asset value per share, as determined in the manner described in the Issuer's current Prospectus and/or Statement of Additional Information, plus a sales charge (if any) described in the Issuer's current Prospectus and/or Statement of Additional Information. The Issuer shall in all cases receive the net asset value per share on all sales. If a sales charge is in effect, Distributors shall have the right subject to such rules or regulations of the Securities and Exchange Commission as may then be in effect pursuant to Section 22 of the Investment Company Act of 1940 to pay a portion of the sales charge to dealers who have sold shares of the Issuer. If a fee in connection with shareholder redemptions is in effect, the Issuer shall collect the fee on behalf of Distributors and, unless otherwise agreed upon by the Issuer and Distributors, Distributors shall be entitled to receive all of such fees. 5. Suspension of Sales - If and whenever the determination of net asset value is suspended and until such suspension is terminated, no further orders for shares shall be processed by Distributors except such unconditional orders as may have been placed with Distributors before it had knowledge of the suspension. In addition, the Issuer reserves the right to suspend sales and Distributors' authority to process orders for shares on behalf of the Issuer if, in the judgment of the Issuer, it is in the best interests of the Issuer to do so. Suspension will continue for such period as may be determined by the Issuer. 6. Solicitation of Sales - In consideration of these rights granted to Distributors, Distributors agrees to use all reasonable efforts, consistent with its other business, to secure purchasers for shares of the Issuer. This shall not prevent Distributors from entering into like arrangements (including arrangements involving the payment of underwriting commissions) with other issuers. This does not obligate Distributors to register as a broker or dealer under the Blue Sky Laws of any jurisdiction in which it is not now registered or to maintain its registration in any jurisdiction in which it is now registered. If a sales charge is in effect, Distributors shall have the right to enter into sales agreements with dealers of its choice for the sale of shares of the Issuer to the public at the public offering price only and fix in such agreements the portion of the sales charge which may be retained by dealers, provided that the Issuer shall approve the form of the dealer agreement and the dealer discounts set forth therein and shall evidence such approval by filing said form of dealer agreement and amendments thereto as an exhibit to its currently effective Registration Statement under the 1933 Act. 7. Authorized Representations - Distributors is not authorized by the Issuer to give any information or to make any representations other than those contained in the appropriate registration statements or Prospectuses and Statements of Additional Information filed with the Securities and Exchange Commission under the 1933 Act (as these registration statements, Prospectuses and Statements of Additional Information may be amended from time to time), or contained in shareholder reports or other material that may be prepared by or on behalf of the Issuer for Distributors' use. This shall not be construed to prevent Distributors from preparing and distributing sales literature or other material as it may deem appropriate. 8. Portfolio Securities - Portfolio securities of the Issuer may be bought or sold by or through Distributors, and Distributors may participate directly or indirectly in brokerage commissions or "spreads" for transactions in portfolio securities of the Issuer. 9. Registration of Shares - The Issuer agrees that it will take all action necessary to register shares under the 1933 Act (subject to the necessary approval of its shareholders) so that there will be available for sale the number of shares Distributors may reasonably be expected to sell. The Issuer shall make available to Distributors such number of copies of its currently effective Prospectus and Statement of Additional Information as Distributors may reasonably request. The Issuer shall furnish to Distributors copies of all information, financial statements and other papers which Distributors may reasonably request for use in connection with the distribution of shares of the Issuer. 10. Expenses - The Issuer shall pay all fees and expenses (a) in connection with the preparation, setting in type and filing of any registration statement, Prospectus and Statement of Additional Information under the 1933 Act and amendments for the issue of its shares, (b) in connection with the registration and qualification of shares for sale in the various states in which the Board of Trustees of the Issuer shall determine it advisable to qualify such shares for sale (including registering the Issuer as a broker or dealer or any officer of the Issuer as agent or salesman in any state), (c) of preparing, setting in type, printing and mailing any report or other communication to shareholders of the Issuer in their capacity as such, and (d) of preparing, setting in type, printing and mailing Prospectuses, Statements of Additional Information and any supplements thereto sent to existing shareholders. 11. Indemnification - The Issuer agrees to indemnify and hold harmless Distributors and each of its directors and officers and each person, if any, who controls Distributors within the meaning of Section 15 of the 1933 Act against any loss, liability, claim, damages or expense (including the reasonable cost of investigating or defending any alleged loss, liability, claim, damages, or expense and reasonable counsel fees incurred in connection therewith) arising by reason of any person acquiring any shares, based upon the ground that the registration statement, Prospectus, Statement of Additional Information, shareholder reports or other information filed or made public by the Issuer (as from time to time amended) included an untrue statement of a material fact or omitted to state a material fact required to be stated or necessary in order to make the statements not misleading under the 1933 Act, or any other statute or the common law. However, the Issuer does not agree to indemnify Distributors or hold it harmless to the extent that the statement or omission was made in reliance upon, and in conformity with, information furnished to the Issuer by or on behalf of Distributors. In no case (i) is the indemnity of the Issuer in favor of Distributors or any person indemnified to be deemed to protect Distributors or any person against any liability to the Issuer or its security holders to which Distributors or such person would otherwise be subject by reason of willful misfeasance, bad faith or gross negligence in the performance of its duties or by reason of its reckless disregard of its obligations and duties under this Agreement, or (ii) is the Issuer to be liable under its indemnity agreement contained in this paragraph with respect to any claim made against Distributors or any person indemnified unless Distributors or person, as the case may be, shall have notified the Issuer in writing of the claim within a reasonable time after the summons or other first written notification giving information of the nature of the claim shall have been served upon Distributors or any such person (or after Distributors or such person shall have received notice of service on any designated agent). However, failure to notify the Issuer of any claim shall not relieve the Issuer from any liability which it may have to Distributors or any person against whom such action is brought otherwise than on account of its indemnity agreement contained in this paragraph. The Issuer shall be entitled to participate at its own expense in the defense, or, if it so elects, to assume the defense of any suit brought to enforce any claims, but if the Issuer elects to assume the defense, the defense shall be conducted by counsel chosen by it and satisfactory to Distributors or person or persons, defendant or defendants in the suit. In the event the Issuer elects to assume the defense of any suit and retain counsel, Distributors, officers or directors or controlling person or persons, defendant or defendants in the suit, shall bear the fees and expenses of any additional counsel retained by them. If the Issuer does not elect to assume the defense of any suit, it will reimburse Distributors, officers or directors or controlling person or persons, defendant or defendants in the suit, for the reasonable fees and expenses of any counsel retained by them. The Issuer agrees to notify Distributors promptly of the commencement of any litigation or proceedings against it or any of its officers or trustees in connection with the issuance or sale of any of the shares. Distributors also covenants and agrees that it will indemnify and hold harmless the Issuer and each of its Board members and officers and each person, if any, who controls the Issuer within the meaning of Section 15 of the 1933 Act, against any loss, liability, damages, claim or expense (including the reasonable cost of investigating or defending any alleged loss, liability, damages, claim or expense and reasonable counsel fees incurred in connection therewith) arising by reason of any person acquiring any shares, based upon the 1933 Act or any other statute or common law, alleging any wrongful act of Distributors or any of its employees or alleging that the registration statement, Prospectus, Statement of Additional Information, shareholder reports or other information filed or made public by the Issuer (as from time to time amended) included an untrue statement of a material fact or omitted to state a material fact required to be stated or necessary in order to make the statements not misleading, insofar as the statement or omission was made in reliance upon, and in conformity with information furnished to the Issuer by or on behalf of Distributors. In no case (i) is the indemnity of Distributors in favor of the Issuer or any person indemnified to be deemed to protect the Issuer or any person against any liability to which the Issuer or such person would otherwise be subject by reason of willful misfeasance, bad faith or gross negligence in the performance of its duties or by reason of its reckless disregard of its obligations and duties under this Agreement, or (ii) is Distributors to be liable under its indemnity agreement contained in this paragraph with respect to any claim made against the Issuer or any person indemnified unless the Issuer or person, as the case may be, shall have notified Distributors in writing of the claim within a reasonable time after the summons or other first written notification giving information of the nature of the claim shall have been served upon the Issuer or any such person (or after the Issuer or such person shall have received notice of service on any designated agent). However, failure to notify Distributors of any claim shall not relieve Distributors from any liability which it may have to the Issuer or any person against whom the action is brought otherwise than on account of its indemnity agreement contained in this paragraph. In the case of any notice to Distributors, it shall be entitled to participate, at its own expense, in the defense or, if it so elects, to assume the defense of any suit brought to enforce the claim, but if Distributors elects to assume the defense, the defense shall be conducted by counsel chosen by it and satisfactory to the Issuer, to its officers and Board and to any controlling person or persons, defendant or defendants in the suit. In the event that Distributors elects to assume the defense of any suit and retain counsel, the Issuer or controlling persons, defendant or defendants in the suit, shall bear the fees and expense of any additional counsel retained by them. If Distributors does not elect to assume the defense of any suit, it will reimburse the Issuer, officers and Board or controlling person or persons, defendant or defendants in the suit, for the reasonable fees and expenses of any counsel retained by them. Distributors agrees to notify the Issuer promptly of the commencement of any litigation or proceedings against it in connection with the issue and sale of any of the shares. 12. Effective Date - This agreement shall be effective upon its execution, and unless terminated as provided, shall continue in force until January 31, 1996 and thereafter from year to year, provided continuance is approved annually by the vote of a majority of the Board members of the Issuer, and by the vote of those Board members of the Issuer who are not "interested persons" of the Issuer and, if a plan under Rule 12b-1 under the Investment Company Act of 1940 is in effect, by the vote of those Board members of the Issuer who are not "interested persons" of the Issuer and who are not parties to the Distribution and Service Plan or this Agreement and have no financial interest in the operation of the Distribution and Service Plan or in any agreements related to the Distribution and Service Plan, cast in person at a meeting called for the purpose of voting on the approval. This Agreement shall automatically terminate in the event of its assignment. As used in this paragraph, the terms "assignment" and "interested persons" shall have the respective meanings specified in the Investment Company Act of 1940 as now in effect or as hereafter amended. In addition to termination by failure to approve continuance or by assignment, this Agreement may at any time be terminated by either party upon not less than sixty days' prior written notice to the other party. 13. Notice - Any notice required or permitted to be given by either party to the other shall be deemed sufficient if sent by registered or certified mail, postage prepaid, addressed by the party giving notice to the other party at the last address furnished by the other party to the party giving notice: if to the Issuer, at 82 Devonshire Street, Boston, Massachusetts, and if to Distributors, at 82 Devonshire Street, Boston, Massachusetts. 14. Limitation of Liability - Distributors is expressly put on notice of the limitation of shareholder liability as set forth in the Declaration of Trust or other organizational document of the Issuer and agrees that the obligations assumed by the Issuer under this contract shall be limited in all cases to the Issuer and its assets. Distributors shall not seek satisfaction of any such obligation from the shareholders or any shareholder of the Issuer. Nor shall Distributors seek satisfaction of any such obligation from the Trustees or any individual Trustee of the Issuer. Distributors understands that the rights and obligations of each series of shares of the Issuer under the Issuer's Declaration of Trust or other organizational document are separate and distinct from those of any and all other series. 15. This agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts, without giving effect to the choice of laws provisions thereof. IN WITNESS WHEREOF, the Issuer has executed this instrument in its name and behalf, and its seal affixed, by one of its officers duly authorized, and Distributors has executed this instrument in its name and behalf by one of its officers duly authorized, as of the day and year first above written. FIDELITY INVESTMENT TRUST By /s/ J. Gary Burkhead J. Gary Burkhead Senior Vice President FIDELITY DISTRIBUTORS CORPORATION By /s/ Kurt A. Lang Kurt A. Lang President EX-99.B6 15 Exhibit 6(r) GENERAL DISTRIBUTION AGREEMENT BETWEEN FIDELITY INVESTMENT TRUST AND FIDELITY DISTRIBUTORS CORPORATION Agreement made this14th day of September, 1995, between Fidelity Investment Trust, a Massachusetts business trust having its principal place of business in Boston, Massachusetts and which may issue one or more series of beneficial interest ("Issuer"), with respect to shares of Fidelity Nordic Fund, a series of the Issuer, and Fidelity Distributors Corporation, a Massachusetts corporation having its principal place of business in Boston, Massachusetts ("Distributors"). In consideration of the mutual promises and undertakings herein contained, the parties agree as follows: 1. Sale of Shares - The Issuer grants to Distributors the right to sell shares on behalf of the Issuer during the term of this Agreement and subject to the registration requirements of the Securities Act of 1933, as amended ("1933 Act"), and of the laws governing the sale of securities in the various states ("Blue Sky Laws") under the following terms and conditions: Distributors (i) shall have the right to sell, as agent on behalf of the Issuer, shares authorized for issue and registered under the 1933 Act, and (ii) may sell shares under offers of exchange, if available, between and among the funds advised by Fidelity Management & Research Company ("FMR"). 2. Sale of Shares by the Issuer - The rights granted to Distributors shall be nonexclusive in that the Issuer reserves the right to sell its shares to investors on applications received and accepted by the Issuer. Further, the Issuer reserves the right to issue shares in connection with the merger or consolidation, or acquisition by the Issuer through purchase or otherwise, with any other investment company, trust, or personal holding company. 3. Shares Covered by this Agreement - This Agreement shall apply to unissued shares of the Issuer, shares of the Issuer held in its treasury in the event that in the discretion of the Issuer treasury shares shall be sold, and shares of the Issuer repurchased for resale. 4. Public Offering Price - Except as otherwise noted in the Issuer's current Prospectus and/or Statement of Additional Information, all shares sold to investors by Distributors or the Issuer will be sold at the public offering price. The public offering price for all accepted subscriptions will be the net asset value per share, as determined in the manner described in the Issuer's current Prospectus and/or Statement of Additional Information, plus a sales charge (if any) described in the Issuer's current Prospectus and/or Statement of Additional Information. The Issuer shall in all cases receive the net asset value per share on all sales. If a sales charge is in effect, Distributors shall have the right subject to such rules or regulations of the Securities and Exchange Commission as may then be in effect pursuant to Section 22 of the Investment Company Act of 1940 to pay a portion of the sales charge to dealers who have sold shares of the Issuer. If a fee in connection with shareholder redemptions is in effect, the Issuer shall collect the fee on behalf of Distributors and, unless otherwise agreed upon by the Issuer and Distributors, Distributors shall be entitled to receive all of such fees. 5. Suspension of Sales - If and whenever the determination of net asset value is suspended and until such suspension is terminated, no further orders for shares shall be processed by Distributors except such unconditional orders as may have been placed with Distributors before it had knowledge of the suspension. In addition, the Issuer reserves the right to suspend sales and Distributors' authority to process orders for shares on behalf of the Issuer if, in the judgment of the Issuer, it is in the best interests of the Issuer to do so. Suspension will continue for such period as may be determined by the Issuer. 6. Solicitation of Sales - In consideration of these rights granted to Distributors, Distributors agrees to use all reasonable efforts, consistent with its other business, to secure purchasers for shares of the Issuer. This shall not prevent Distributors from entering into like arrangements (including arrangements involving the payment of underwriting commissions) with other issuers. This does not obligate Distributors to register as a broker or dealer under the Blue Sky Laws of any jurisdiction in which it is not now registered or to maintain its registration in any jurisdiction in which it is now registered. If a sales charge is in effect, Distributors shall have the right to enter into sales agreements with dealers of its choice for the sale of shares of the Issuer to the public at the public offering price only and fix in such agreements the portion of the sales charge which may be retained by dealers, provided that the Issuer shall approve the form of the dealer agreement and the dealer discounts set forth therein and shall evidence such approval by filing said form of dealer agreement and amendments thereto as an exhibit to its currently effective Registration Statement under the 1933 Act. 7. Authorized Representations - Distributors is not authorized by the Issuer to give any information or to make any representations other than those contained in the appropriate registration statements or Prospectuses and Statements of Additional Information filed with the Securities and Exchange Commission under the 1933 Act (as these registration statements, Prospectuses and Statements of Additional Information may be amended from time to time), or contained in shareholder reports or other material that may be prepared by or on behalf of the Issuer for Distributors' use. This shall not be construed to prevent Distributors from preparing and distributing sales literature or other material as it may deem appropriate. 8. Portfolio Securities - Portfolio securities of the Issuer may be bought or sold by or through Distributors, and Distributors may participate directly or indirectly in brokerage commissions or "spreads" for transactions in portfolio securities of the Issuer. 9. Registration of Shares - The Issuer agrees that it will take all action necessary to register shares under the 1933 Act (subject to the necessary approval of its shareholders) so that there will be available for sale the number of shares Distributors may reasonably be expected to sell. The Issuer shall make available to Distributors such number of copies of its currently effective Prospectus and Statement of Additional Information as Distributors may reasonably request. The Issuer shall furnish to Distributors copies of all information, financial statements and other papers which Distributors may reasonably request for use in connection with the distribution of shares of the Issuer. 10. Expenses - The Issuer shall pay all fees and expenses (a) in connection with the preparation, setting in type and filing of any registration statement, Prospectus and Statement of Additional Information under the 1933 Act and amendments for the issue of its shares, (b) in connection with the registration and qualification of shares for sale in the various states in which the Board of Trustees of the Issuer shall determine it advisable to qualify such shares for sale (including registering the Issuer as a broker or dealer or any officer of the Issuer as agent or salesman in any state), (c) of preparing, setting in type, printing and mailing any report or other communication to shareholders of the Issuer in their capacity as such, and (d) of preparing, setting in type, printing and mailing Prospectuses, Statements of Additional Information and any supplements thereto sent to existing shareholders. 11. Indemnification - The Issuer agrees to indemnify and hold harmless Distributors and each of its directors and officers and each person, if any, who controls Distributors within the meaning of Section 15 of the 1933 Act against any loss, liability, claim, damages or expense (including the reasonable cost of investigating or defending any alleged loss, liability, claim, damages, or expense and reasonable counsel fees incurred in connection therewith) arising by reason of any person acquiring any shares, based upon the ground that the registration statement, Prospectus, Statement of Additional Information, shareholder reports or other information filed or made public by the Issuer (as from time to time amended) included an untrue statement of a material fact or omitted to state a material fact required to be stated or necessary in order to make the statements not misleading under the 1933 Act, or any other statute or the common law. However, the Issuer does not agree to indemnify Distributors or hold it harmless to the extent that the statement or omission was made in reliance upon, and in conformity with, information furnished to the Issuer by or on behalf of Distributors. In no case (i) is the indemnity of the Issuer in favor of Distributors or any person indemnified to be deemed to protect Distributors or any person against any liability to the Issuer or its security holders to which Distributors or such person would otherwise be subject by reason of willful misfeasance, bad faith or gross negligence in the performance of its duties or by reason of its reckless disregard of its obligations and duties under this Agreement, or (ii) is the Issuer to be liable under its indemnity agreement contained in this paragraph with respect to any claim made against Distributors or any person indemnified unless Distributors or person, as the case may be, shall have notified the Issuer in writing of the claim within a reasonable time after the summons or other first written notification giving information of the nature of the claim shall have been served upon Distributors or any such person (or after Distributors or such person shall have received notice of service on any designated agent). However, failure to notify the Issuer of any claim shall not relieve the Issuer from any liability which it may have to Distributors or any person against whom such action is brought otherwise than on account of its indemnity agreement contained in this paragraph. The Issuer shall be entitled to participate at its own expense in the defense, or, if it so elects, to assume the defense of any suit brought to enforce any claims, but if the Issuer elects to assume the defense, the defense shall be conducted by counsel chosen by it and satisfactory to Distributors or person or persons, defendant or defendants in the suit. In the event the Issuer elects to assume the defense of any suit and retain counsel, Distributors, officers or directors or controlling person or persons, defendant or defendants in the suit, shall bear the fees and expenses of any additional counsel retained by them. If the Issuer does not elect to assume the defense of any suit, it will reimburse Distributors, officers or directors or controlling person or persons, defendant or defendants in the suit, for the reasonable fees and expenses of any counsel retained by them. The Issuer agrees to notify Distributors promptly of the commencement of any litigation or proceedings against it or any of its officers or trustees in connection with the issuance or sale of any of the shares. Distributors also covenants and agrees that it will indemnify and hold harmless the Issuer and each of its Board members and officers and each person, if any, who controls the Issuer within the meaning of Section 15 of the 1933 Act, against any loss, liability, damages, claim or expense (including the reasonable cost of investigating or defending any alleged loss, liability, damages, claim or expense and reasonable counsel fees incurred in connection therewith) arising by reason of any person acquiring any shares, based upon the 1933 Act or any other statute or common law, alleging any wrongful act of Distributors or any of its employees or alleging that the registration statement, Prospectus, Statement of Additional Information, shareholder reports or other information filed or made public by the Issuer (as from time to time amended) included an untrue statement of a material fact or omitted to state a material fact required to be stated or necessary in order to make the statements not misleading, insofar as the statement or omission was made in reliance upon, and in conformity with information furnished to the Issuer by or on behalf of Distributors. In no case (i) is the indemnity of Distributors in favor of the Issuer or any person indemnified to be deemed to protect the Issuer or any person against any liability to which the Issuer or such person would otherwise be subject by reason of willful misfeasance, bad faith or gross negligence in the performance of its duties or by reason of its reckless disregard of its obligations and duties under this Agreement, or (ii) is Distributors to be liable under its indemnity agreement contained in this paragraph with respect to any claim made against the Issuer or any person indemnified unless the Issuer or person, as the case may be, shall have notified Distributors in writing of the claim within a reasonable time after the summons or other first written notification giving information of the nature of the claim shall have been served upon the Issuer or any such person (or after the Issuer or such person shall have received notice of service on any designated agent). However, failure to notify Distributors of any claim shall not relieve Distributors from any liability which it may have to the Issuer or any person against whom the action is brought otherwise than on account of its indemnity agreement contained in this paragraph. In the case of any notice to Distributors, it shall be entitled to participate, at its own expense, in the defense or, if it so elects, to assume the defense of any suit brought to enforce the claim, but if Distributors elects to assume the defense, the defense shall be conducted by counsel chosen by it and satisfactory to the Issuer, to its officers and Board and to any controlling person or persons, defendant or defendants in the suit. In the event that Distributors elects to assume the defense of any suit and retain counsel, the Issuer or controlling persons, defendant or defendants in the suit, shall bear the fees and expense of any additional counsel retained by them. If Distributors does not elect to assume the defense of any suit, it will reimburse the Issuer, officers and Board or controlling person or persons, defendant or defendants in the suit, for the reasonable fees and expenses of any counsel retained by them. Distributors agrees to notify the Issuer promptly of the commencement of any litigation or proceedings against it in connection with the issue and sale of any of the shares. 12. Effective Date - This agreement shall be effective upon its execution, and unless terminated as provided, shall continue in force until January 31, 1996 and thereafter from year to year, provided continuance is approved annually by the vote of a majority of the Board members of the Issuer, and by the vote of those Board members of the Issuer who are not "interested persons" of the Issuer and, if a plan under Rule 12b-1 under the Investment Company Act of 1940 is in effect, by the vote of those Board members of the Issuer who are not "interested persons" of the Issuer and who are not parties to the Distribution and Service Plan or this Agreement and have no financial interest in the operation of the Distribution and Service Plan or in any agreements related to the Distribution and Service Plan, cast in person at a meeting called for the purpose of voting on the approval. This Agreement shall automatically terminate in the event of its assignment. As used in this paragraph, the terms "assignment" and "interested persons" shall have the respective meanings specified in the Investment Company Act of 1940 as now in effect or as hereafter amended. In addition to termination by failure to approve continuance or by assignment, this Agreement may at any time be terminated by either party upon not less than sixty days' prior written notice to the other party. 13. Notice - Any notice required or permitted to be given by either party to the other shall be deemed sufficient if sent by registered or certified mail, postage prepaid, addressed by the party giving notice to the other party at the last address furnished by the other party to the party giving notice: if to the Issuer, at 82 Devonshire Street, Boston, Massachusetts, and if to Distributors, at 82 Devonshire Street, Boston, Massachusetts. 14. Limitation of Liability - Distributors is expressly put on notice of the limitation of shareholder liability as set forth in the Declaration of Trust or other organizational document of the Issuer and agrees that the obligations assumed by the Issuer under this contract shall be limited in all cases to the Issuer and its assets. Distributors shall not seek satisfaction of any such obligation from the shareholders or any shareholder of the Issuer. Nor shall Distributors seek satisfaction of any such obligation from the Trustees or any individual Trustee of the Issuer. Distributors understands that the rights and obligations of each series of shares of the Issuer under the Issuer's Declaration of Trust or other organizational document are separate and distinct from those of any and all other series. 15. This agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts, without giving effect to the choice of laws provisions thereof. IN WITNESS WHEREOF, the Issuer has executed this instrument in its name and behalf, and its seal affixed, by one of its officers duly authorized, and Distributors has executed this instrument in its name and behalf by one of its officers duly authorized, as of the day and year first above written. FIDELITY INVESTMENT TRUST By /s/ J. Gary Burkhead J. Gary Burkhead Senior Vice President FIDELITY DISTRIBUTORS CORPORATION By /s/ Kurt A. Lang Kurt A. Lang President EX-99.B12 16 (2_FIDELITY_LOGOS)FIDELITY'S TARGETED INTERNATIONAL EQUITY FUNDS Fidelity Canada Fund Fidelity Emerging Markets Fund Fidelity Europe Fund Fidelity Europe Capital Appreciation Fund Fidelity France Fund Fidelity Germany Fund Fidelity Hong Kong and China Fund Fidelity Japan Fund Fidelity Japan Small Companies Fund Fidelity Latin America Fund Fidelity Nordic Fund Fidelity Pacific Basin Fund Fidelity Southeast Asia Fund Fidelity United Kingdom Fund SEMIANNUAL REPORT APRIL 30, 1996 CONTENTS
MARKET RECAP 4 A REVIEW OF WHAT HAPPENED IN WORLD MARKETS DURING THE LAST SIX MONTHS. CANADA FUND 5 PERFORMANCE 6 FUND TALK: THE MANAGER'S OVERVIEW 8 INVESTMENT CHANGES 9 INVESTMENTS 11 FINANCIAL STATEMENTS EMERGING MARKETS FUND 13 PERFORMANCE 14 FUND TALK: THE MANAGER'S OVERVIEW 16 INVESTMENT CHANGES 17 INVESTMENTS 23 FINANCIAL STATEMENTS EUROPE FUND 25 PERFORMANCE 26 FUND TALK: THE MANAGER'S OVERVIEW 28 INVESTMENT CHANGES 29 INVESTMENTS 32 FINANCIAL STATEMENTS EUROPE CAPITAL APPRECIATION FUND 34 PERFORMANCE 35 FUND TALK: THE MANAGER'S OVERVIEW 37 INVESTMENT CHANGES 38 INVESTMENTS 41 FINANCIAL STATEMENTS FRANCE FUND 43 PERFORMANCE 44 FUND TALK: THE MANAGER'S OVERVIEW 46 INVESTMENT SUMMARY 47 INVESTMENTS 49 FINANCIAL STATEMENTS GERMANY FUND 51 PERFORMANCE 52 FUND TALK: THE MANAGER'S OVERVIEW 54 INVESTMENT SUMMARY 55 INVESTMENTS 57 FINANCIAL STATEMENTS HONG KONG AND CHINA FUND 59 PERFORMANCE 60 FUND TALK: THE MANAGER'S OVERVIEW 62 INVESTMENT SUMMARY 63 INVESTMENTS 65 FINANCIAL STATEMENTS JAPAN FUND 67 PERFORMANCE 68 FUND TALK: THE MANAGER'S OVERVIEW 70 INVESTMENT CHANGES 71 INVESTMENTS 74 FINANCIAL STATEMENTS JAPAN SMALL COMPANIES FUND 76 PERFORMANCE 77 FUND TALK: THE MANAGER'S OVERVIEW 79 INVESTMENT SUMMARY 80 INVESTMENTS 83 FINANCIAL STATEMENTS LATIN AMERICA FUND 85 PERFORMANCE 86 FUND TALK: THE MANAGER'S OVERVIEW 88 INVESTMENT CHANGES 89 INVESTMENTS 92 FINANCIAL STATEMENTS NORDIC FUND 94 PERFORMANCE 95 FUND TALK: THE MANAGER'S OVERVIEW 97 INVESTMENT SUMMARY 98 INVESTMENTS 100 FINANCIAL STATEMENTS PACIFIC BASIN FUND 102 PERFORMANCE 103 FUND TALK: THE MANAGER'S OVERVIEW 105 INVESTMENT CHANGES 106 INVESTMENTS 110 FINANCIAL STATEMENTS SOUTHEAST ASIA FUND 112 PERFORMANCE 113 FUND TALK: THE MANAGER'S OVERVIEW 115 INVESTMENT CHANGES 116 INVESTMENTS 119 FINANCIAL STATEMENTS UNITED KINGDOM FUND 121 PERFORMANCE 122 FUND TALK: THE MANAGER'S OVERVIEW 124 INVESTMENT SUMMARY 125 INVESTMENTS 127 FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS 129 NOTES TO THE FINANCIAL STATEMENTS
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR THE GENERAL INFORMATION OF THE SHAREHOLDERS OF THE FUNDS. THIS REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE FUNDS UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS. MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED. NEITHER THE FUNDS NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK. FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES, CALL 1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY. In a reversal from their mediocre performance during much of 1995, most overseas stock markets enjoyed solid returns for the six-month period ended April 30, 1996. Renewed economic growth, lower interest rates and undervalued securities helped lift the Morgan Stanley Capital International Europe, Australasia, Far East (EAFE) Index - which measures stock performance in Europe, Australia and the Far East - to a 13.21% gain for the period. EUROPE: At the beginning of the period, the probability of European monetary union under the Maastricht agreement weighed heavily on many European exchanges. Additionally, slow economic growth and double-digit unemployment in many European countries hurt the equity markets. However, the markets quickly rebounded on the strength of undervalued stocks as well as attractive cost-cutting and restructuring plans offered by several high-profile corporations, helping the Morgan Stanley Capital International Europe Index rise 8.54% during the period. Merger and acquisition activity also flourished, as seen in the $30 billion mega-merger between pharmaceutical giants Ciba-Geigy and Sandoz. JAPAN AND THE FAR EAST: Many Asian stock markets posted strong returns in the six months ended April 30, 1996. The Morgan Stanley Capital International Far East Ex-Japan Free Index - a measure of Far East markets excluding Japan - rose 17.10%, reversing the negative returns that haunted them in 1995. Malaysia, Indonesia and the Philippines all posted top returns. Foreign capital inflows surged into Asia as investors were drawn to undervalued large-company stocks. Construction and development also continued to flourish in the region, symbolized by the near-completion of the tallest buildings in the world, the Petronas towers in downtown Kuala Lumpur, Malaysia. A weak yen, astonishingly low interest rates, a recovering economy and a variety of undervalued stocks aided the Japanese stock market. The Morgan Stanley Capital International Japan Index (net dividends) soared 18.08% in U.S. dollars. The Tokyo Stock Exchange TOPIX Total Return Index, another measure of the Japanese market, posted a six-month return of 18.87%. EMERGING MARKETS: Renewed interest by foreign investors also played a key role in turning emerging markets around from last year's negative levels, and the Morgan Stanley Capital International Emerging Markets Free Index posted a 13.32% return during the period. In Latin America, Brazil benefited from the recent relative stability of its currency, controlled inflation and ample government reserves. Argentina and Peru had relatively strong stock markets, although Peru sustained a major economic downturn and Argentina is currently mired in a recession. While Mexican stocks posted strong returns, economic growth there was hobbled by a weak banking sector, large corporate debts and the collapse of real - adjusted for inflation - wages. South African mining stocks were helped by rising gold prices earlier in the period, although those gains were given back due to political and economic concerns. In Eastern Europe, two of the top emerging markets were Poland and Hungary. U.S. AND CANADA: Although rising interest rates added to an already clouded corporate earnings outlook in the first quarter of 1996, U.S. stocks posted healthy returns for the past six months, as the Standard & Poor's 500 Index finished the period up 13.76%. Investors appeared to lose their appetite for the blue-chip, multinational firms that drove the market in 1995. This development was due in part to a stronger dollar, surging cash flows into mutual funds and the higher valuations of large-capitalization stocks relative to small-capitalization stocks. The Canadian market saw several positive events after the defeat of a referendum on Quebec's secession in October 1995, including good growth relative to the U.S. market, the stability of the Canadian dollar, interest rate declines and cost-cutting by governments at both the federal and provincial level. For the six-month period, the Toronto Stock Exchange Composite 300 Index returned 15.25%. BONDS: Bond markets worldwide turned in mixed results during the six months ended April 30, 1996. In the U.S., yields rose - and prices fell - on most fixed-income investments, as indications of a pick-up in economic growth stirred inflation fears. Although the Federal Reserve Board lowered short-term interest rates in January, it did not continue the easing trend that the market had anticipated. Although some foreign markets posted solid positive returns, the Salomon Brothers Non-U.S. World Government Bond Index - - which tracks the performance of government bonds in 13 developed countries excluding the U.S. - posted a -0.18% return for the six months ended April 30, 1996. This return was influenced by interest rate increases in the U.S., the strength of the U.S. dollar, and strong weightings in both Germany - where the Bundesbank lowered interest rates, but not enough to spark a significant rally - and Japan - where the recent economic rebound created anxiety that interest rates would bounce back from low levels. Bonds in emerging markets soundly beat their developed counterparts during the period, with the J.P. Morgan Emerging Markets Bond Index returning 21.34% for the six months ended April 30, 1996. S&P 500 EAFE * YEAR TO DATE THROUGH APRIL 30, 1996. Row: 1, Col: 1, Value: 22.38 Row: 1, Col: 2, Value: 23.69 Row: 2, Col: 1, Value: 6.1 Row: 2, Col: 2, Value: 7.38 Row: 3, Col: 1, Value: 31.57 Row: 3, Col: 2, Value: 56.16 Row: 4, Col: 1, Value: 18.56 Row: 4, Col: 2, Value: 69.44000000000001 Row: 5, Col: 1, Value: 5.1 Row: 5, Col: 2, Value: 24.63 Row: 6, Col: 1, Value: 16.61 Row: 6, Col: 2, Value: 28.27 Row: 7, Col: 1, Value: 31.69 Row: 7, Col: 2, Value: 10.53 Row: 8, Col: 1, Value: -3.1 Row: 8, Col: 2, Value: -23.45 Row: 9, Col: 1, Value: 30.47 Row: 9, Col: 2, Value: 12.13 Row: 10, Col: 1, Value: 7.619999999999999 Row: 10, Col: 2, Value: -12.17 Row: 11, Col: 1, Value: 10.08 Row: 11, Col: 2, Value: 32.56 Row: 12, Col: 1, Value: -2.56 Row: 12, Col: 2, Value: 7.89 Row: 13, Col: 1, Value: 37.58 Row: 13, Col: 2, Value: 11.21 Row: 14, Col: 1, Value: 6.92 Row: 14, Col: 2, Value: 5.88 % FRANCE PERFORMANCE: THE BOTTOM LINE There are several ways to evaluate a fund's historical performance. You can look at the total percentage change in value, the average annual percentage change, or the growth of a hypothetical $10,000 investment. Each performance figure includes changes in a fund's share price, plus reinvestment of any dividends (income) and capital gains (the profits the fund earns when it sells securities that have grown in value). The fund has a 3% sales charge. If Fidelity had not reimbursed certain fund expenses during the period shown, the total returns would have been lower. CUMULATIVE TOTAL RETURNS PERIOD ENDED PAST 6 APRIL 30, 1996 MONTHS * FRANCE 17.56% FRANCE (INCL. 3% SALES CHARGE) 14.04% Socit des Bourses Franaises 250 Index 14.16% European Region Funds Average 9.69% * LIFE OF FUND. CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms over a set period - in this case, six months (since the fund started on November 1, 1995). For example, if you invested $1,000 in a fund that had a 5% return over the past year, the value of your investment would be $1,050. You can compare the fund's returns to the performance of the Socit des Bourses Franaises 250 Index - an unmanaged capitalization weighted index of the top 250 stocks on the Paris Stock Exchange. To measure how the fund's performance stacked up against its peers, you can compare the fund's performance to the European region funds average, which reflects the performance of 46 funds with similar objectives tracked by Lipper Analytical Services during the period shown. These benchmarks include reinvested dividends and capital gains, if any, and exclude the effects of sales charges. AVERAGE ANNUAL TOTAL RETURNS 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. In the fund's next report we'll report these numbers for the fund and the benchmarks. $10,000 OVER LIFE OF FUND The growth of a hypothetical $10,000 INVESTMENT in the fund will appear in the fund's next report. UNDERSTANDING PERFORMANCE Many markets around the globe offer the potential for significant growth over time; however, investing in foreign markets means assuming greater risks than investing in the United States. Factors like changes in a country's financial markets, its local political and economic climate, and the fluctuating value of its currency create these risks. For these reasons an international fund's performance may be more volatile than a fund that invests exclusively in the United States. Past performance is no guarantee of future results and you may have a gain or loss when you sell your shares. (checkmark) FRANCE FUND TALK: THE MANAGER'S OVERVIEW An interview with Renaud Saleur, Portfolio Manager of Fidelity France Fund Q. RENAUD, HOW HAS THE FUND PERFORMED? A. It has done well. For the first six months of its existence - through April 30, 1996 - the fund had a total return of 17.56%. That beat the 14.16% return of the Socit des Bourses Franaises (SBF) 250 Index - a measure of the overall performance of the French stock market - - for the same period. The fund's performance also beat the 9.69% return of the European region funds average tracked by Lipper Analytical Services over the same period. Q. WHAT HELPED PROPEL THE FUND'S PERFORMANCE? A. As you can see, the French market had a good six months. The fund beat the Lipper European region funds average because the average is made up of funds that invest in other markets, many that did not perform as well during the six-month period. The fund also beat the broad French market because of two reasons. First, the fund had more invested in stocks of small- and mid-sized companies than the index, which was weighted more toward large-capitalization stocks. During the period, stocks of small- and mid-sized companies performed better than large-caps, helping the fund beat the index. Second, the fund's performance was helped by stock picking. Q. HOW HAS THE FRENCH ECONOMY FARED RECENTLY? A. Not that well. It has been growing very slowly. Consumption over the past six months has been very weak, hurt by strikes and terrorist threats at the end of 1995. Unemployment remains quite high, showing no real sign of improvement, and job security for the average French worker is not very strong. In addition, the government has been extremely aggressive in raising taxes, trying to reduce its budget deficit in order to comply with the Maastricht Treaty - the basis for the creation of a European Union. At the same time, the French have a very high savings rate, about 13%. The government is hoping that eventually people will start to spend some of their savings to stimulate growth, but there's been no evidence of that thus far. Q. GIVEN THIS BACKDROP, WHY DID THE FRENCH MARKET PERFORM SO WELL OVER THE PAST SIX MONTHS? A. First of all, the French market lagged other European markets badly through 1994 and 1995, so many French alternatives became attractive because they were cheaper. In addition, while France historically has not been a strong equity-oriented culture, the infusion of mutual funds and the money they bring in has helped drive stock prices higher. Foreign investors also have seen that France has experienced very low inflation, interest rates were going down and many French companies were undervalued compared to alternatives in Germany, Italy and other countries. Finally, a consolidation of corporate structure has helped the market. That is, there has been a revival of takeover activity since the beginning of the year, as well as a number of spin-offs. Companies have become more shareholder-friendly by increasing dividends, among other things. I could sum up by saying that while I'm not optimistic about the French economy in the near term, I feel confident that these elements could continue to sustain the French market. Q. WHEN LOOKING AT EQUITY INVESTING, WHAT ARE THE MAIN DIFFERENCES BETWEEN FRANCE AND THE U.S.? A. The main difference is that very few French companies historically have run their companies with the shareholder in mind. There are many reasons for this. Many companies were state-owned for a long time, and even though they might be privatized now, management might be former civil servants and feel they are responsible to the state, not to shareholders. This situation is changing, but it is a slow process. In addition, corporate takeovers in France are not as easy as they are in the U.S. because they are generally financed by loans from the major banks. Many of these banks are controlled or influenced by the government and, if the state is not happy with the takeover, it usually won't take place. Another difference is that proxy fights are rare, if not nonexistent. It's unusual for private shareholders to voice unhappiness with management. Q. HAVE ANY SECTORS PIQUED YOUR INTEREST OVER THE PAST SIX MONTHS? A. At the end of the period, finance had the largest sector weighting in the fund - including several of the fund's largest investments - although less than is represented in the SBF 250 index. This hasn't been a very good sector over the period, but I believe it may turn a bit. The next largest sectors represented in the fund were media and leisure, and retail and wholesale, both of which the fund had more invested in than was represented in the index. Worldwide, media and leisure has attracted investor attention with the emergence of new services and digital television, and France is no exception. I've invested in Canal Plus, the country's main provider of pay TV and digital TV service. The fund also was invested in a number of publishing companies, such as CEP Communication and Filipachi Medias. The main attraction here was the improvement in the print advertising climate, as well as the fact that most of these companies have huge libraries of copyrighted materials and documents that can be used easily on the Internet or other multimedia services in the future. In addition, I found valuations in the sector to be cheap. In retail, I've looked for opportunities in the food distribution sector, as opposed to food chains themselves, because limitations on construction have been imposed recently, making it harder to open new stores. Q. WHICH STOCKS PERFORMED WELL FOR THE FUND? A. Axime, a software company the fund has since sold off, benefited from strong demand for its new electronic banking and multimedia products. Clarins, a cosmetic company, did well because it was a takeover candidate and introduced new products. Canal Plus was a solid performer, as was Zodiac, a manufacturer of seats and emergency systems for airplanes that benefited from an increase in the demand for new planes. Q. AND WHICH INVESTMENTS DIDN'T TURN OUT AS WELL AS YOU WOULD HAVE LIKED? A. Most of the financial sector was flat, which, on a relative basis to the rest of the market, made them disappointing. There were some exceptions, mainly special situations, such as Paribas. Financials were hurt by poor loan growth and the slow economy. Q. WHAT'S YOUR OUTLOOK FOR THE NEXT SIX MONTHS? A. I'm generally optimistic. We might see more growth in the second half of the year compared with last year; that increase in growth probably will help the market because investors will be comparing generally poor 1995 earnings with somewhat better earnings in the second half of 1996. I also believe interest rates will be stable or decrease, creating a positive environment without inflation. Finally, we should see an acceleration in takeovers. We've seen quite a few already, and it appears there are more to come. This should be very positive for the market. FUND FACTS GOAL: long-term growth of capital by investing mainly in equity securities of French issuers START DATE: November 1, 1995 TRADING SYMBOL: FFRAF* SIZE: as of April 30, 1996, more than $7 million MANAGER: Renaud Saleur, since November 1995; portfolio manager and senior analyst, Fidelity International, Limited, since 1986; joined Fidelity in 1986 * TEMPORARY TRADING SYMBOL (checkmark) RENAUD SALEUR ON HIS INVESTMENT APPROACH: "I generally look for stocks that have some type of contrarian story to tell. I bought most of the stocks in the portfolio when they were out of favor, regardless of whether they were cyclicals - those that move in tandem with the economy - financials, value stocks or growth stocks. I might buy a turnaround story. The common thread is that these stocks had some sort of positive future to them that nobody believed or paid attention to. A good example is the fund's investment in Clarins. This cosmetic company used to be a great stock. Then it didn't post any growth in earnings for two or three years and lost its status as a growth stock. The company came up with a new product that has been very successful over the past six months, but that story wasn't reflected in the stock price. Finally, investors started to notice the success and the stock went up. "My basic approach is to visit companies and to be the first investor when sentiment changes. I tend to focus more on service or consumer goods companies, rather than industrial companies, because that's where these changes in sentiment are more common. When a company sells a new line of products or offers a new service - for example, when a software company introduces a new product, or when Clarins introduces a new cosmetic - it can have a significant impact. It's more difficult for a heavy industrial company to make such a change. I tend to find more value following this approach toward service and consumer goods companies than I do from looking at heavy industrial companies or cyclicals. Therefore, I tend to focus more on these types of companies." (solid bullet) The French franc depreciated versus the U.S. dollar, negatively affecting the fund's return. (solid bullet) Because of France's economic difficulties, investors generally have been paying a premium for stocks of companies that tend to have earnings growth regardless of the economic environment. These so-called defensive stocks generally are found in the consumer nondurables sector and include consumer products such as food, beverage, tobacco and pharmaceuticals. 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. FRANCE INVESTMENT SUMMARY GEOGRAPHIC DIVERSIFICATION AS OF APRIL 30, 1996 United States 8.1% Row: 1, Col: 1, Value: 8.1 Row: 1, Col: 2, Value: 91.90000000000001 France 91.9% ASSET ALLOCATION % OF FUND'S INVESTMENTS Stocks 90.1 Bonds 1.8 Short-term investments 8.1 TOP TEN STOCKS % OF FUND'S INVESTMENTS Societe Generale Class A 3.6 (Banks) Credit Commercial de France Ord. 3.1 (Banks) Clarins SA 3.1 (Household Products) Elf Aquitaine SA 2.8 (Oil & Gas) Rhone Poulenc SA Class A 2.4 (Drugs & Pharmaceuticals) Docks de France 2.4 (Grocery Stores) Total SA Class B 2.3 (Oil & Gas) Groupe Danone 2.1 (Foods) Paribas SA (Cie Financiere) Class A 1.9 (Banks) Segin SA 1.9 (Credit & Other Finance) TOP TEN MARKET SECTORS % OF FUND'S INVESTMENTS Finance 19.1 Media & Leisure 11.2 Retail & Wholesale 9.4 Nondurables 8.2 Construction & Real Estate 6.9 Energy 5.9 Durables 5.2 Health 4.9 Services 4.6 Industrial Machinery & Equipment 4.0 FRANCE INVESTMENTS APRIL 30, 1996 (UNAUDITED) Showing Percentage of Total Value of Investment in Securities COMMON STOCKS - 87.0% SHARES VALUE (NOTE 1) AEROSPACE & DEFENSE - 1.8% AEROSPACE & DEFENSE - 0.2% Industrielle d'Aviation Latecoere SA 200 $ 16,899 51799322 DEFENSE ELECTRONICS - 1.6% Dassault Electronique SA 1,000 63,592 23799992 Europeene De Propulsion SA 530 63,637 29899792 127,229 TOTAL AEROSPACE & DEFENSE 144,128 BASIC INDUSTRIES - 3.3% CHEMICALS & PLASTICS - 0.7% L'Air Liquide 300 54,466 00867810 METALS & MINING - 2.6% Eramet SA 1,600 122,011 29499H22 Pechiney SA Class A 1,826 85,969 70599396 207,980 TOTAL BASIC INDUSTRIES 262,446 CONSTRUCTION & REAL ESTATE - 6.9% BUILDING MATERIALS - 1.2% Lafarge Coppee SA 610 39,179 50586310 Poliet SA 606 62,100 73199A92 101,279 CONSTRUCTION - 3.9% Compagnie de Saint Gobain 1,000 119,683 20428094 Eiffage SA 242 37,526 27599522 GTM-Entrepose 1,500 96,578 40099110 Technip SA 627 56,360 87899D22 310,147 ENGINEERING - 0.8% Bouygues 600 60,905 10199810 REAL ESTATE - 1.0% Immeubles de France, Ste Des 1,200 82,320 44999C22 TOTAL CONSTRUCTION & REAL ESTATE 554,651 DURABLES - 3.4% HOME FURNISHINGS - 0.9% Strafor Facom SA 1,000 72,506 86299192 TEXTILES & APPAREL - 2.5% Alain Manoukian SA 3,979 69,317 01099B22 Christian Dior SA 1,000 133,217 17699E23 202,534 TOTAL DURABLES 275,040 ENERGY - 5.9% ENERGY SERVICES - 0.8% Compagnie Generale de Geophysique SA (a) 935 64,539 38265091 OIL & GAS - 5.1% Elf Aquitaine SA 3,000 222,912 28627199 Total SA Class B 2,700 183,080 20434510 405,992 TOTAL ENERGY 470,531 FINANCE - 19.1% BANKS - 13.6% CPR (Comp Par Reescompte) 812 70,336 12599592 Caisse Regionale de Credit Agricole Mutuel de l'Ile de France 500 81,593 22599R22 Compagnie Bancaire Ord. 1,000 110,402 20427310 Compagnie de Suez SA 1,200 49,675 31799125 SHARES VALUE (NOTE 1) Credit Commercial de France Ord. 5,000 $ 250,290 22499392 Paribas SA (Cie Financiere) Class A 2,400 154,246 73999192 Societe Generale Class A 2,500 290,023 83357799 Union Financiere de France SA 800 81,980 90699992 1,088,545 CREDIT & OTHER FINANCE - 2.7% Cetelem 300 64,327 15799010 Segin SA (a) 1,232 151,737 05499F22 216,064 INSURANCE - 2.8% Axa SA 1,200 71,438 05299792 Scor SA 1,200 43,689 80999992 UAP (Union des Assurances de Paris) SA 4,975 107,638 93399J22 222,765 TOTAL FINANCE 1,527,374 HEALTH - 3.7% DRUGS & PHARMACEUTICALS - 3.7% Rhone Poulenc SA Class A 8,000 191,802 76242695 Synthelabo 1,298 101,165 93699794 292,967 HOLDING COMPANIES - 3.0% Lagardere Groupe SA (Reg.) 3,000 80,452 50699D22 Nord Est 2,200 59,679 65555610 Ugc Droits Audiovisuels 926 51,510 45199L22 Union Assurancesfederale SA 393 47,719 91899F24 239,360 INDUSTRIAL MACHINERY & EQUIPMENT - 2.8% ELECTRICAL EQUIPMENT - 1.0% Alcatel Alsthom Cie Generale d'Electricite SA 800 75,174 01390492 POLLUTION CONTROL - 1.8% CGEA (Cie Generale d'Entreprises Automobiles) 176 35,050 13399092 SITA (Societe Industrielle de Transports Automobiles) 508 110,008 82980592 145,058 TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 220,232 MEDIA & LEISURE - 11.2% BROADCASTING - 4.4% Canal Plus SA 550 134,629 13899999 Europe 1 Communication (Reg.) 310 71,926 29899192 NRJ SA 1,143 143,206 63299892 349,761 LEISURE DURABLES & TOYS - 2.6% Skis Rossignol SA 370 127,697 83099C22 Zodiac SA 320 79,196 96599492 206,893 PUBLISHING - 3.3% CEP Communication SA 1,500 135,992 15699999 Filipacchi Medias 657 127,538 75599999 263,530 RESTAURANTS - 0.9% Sodexho SA 181 71,707 83499999 TOTAL MEDIA & LEISURE 891,891 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) NONDURABLES - 8.2% BEVERAGES - 1.6% Pernod-Ricard 1,070 $ 70,036 71404310 Remy Cointreau SA 2,200 62,954 76099792 132,990 FOODS - 3.0% Eridania Beghin Say Group Ord. 440 71,717 07720310 Groupe Danone 1,100 166,106 23699J22 237,823 HOUSEHOLD PRODUCTS - 3.1% Clarins SA 1,800 246,752 18051510 TOBACCO - 0.5% Seita 1,060 40,785 81599D22 TOTAL NONDURABLES 658,350 RETAIL & WHOLESALE - 8.7% GENERAL MERCHANDISE STORES - 1.7% Carrefour Supermarche SA 96 74,951 14428610 Galeries Lafayette SA 200 63,418 36341399 138,369 GROCERY STORES - 5.1% Docks de France 1,000 189,482 25538010 Guyenne et Gascogne SA 400 130,781 40299910 Promodes 300 86,137 74699692 406,400 RETAIL & WHOLESALE, MISCELLANEOUS - 1.9% Castorama Dubois Investissements SA 387 74,003 93999592 Hyparlo SA 1,100 77,606 45099S22 151,609 TOTAL RETAIL & WHOLESALE 696,378 SERVICES - 4.6% ADVERTISING - 2.4% Havas Advertising 418 47,360 41999622 Havas SA 1,700 141,075 00822292 188,435 SERVICES - 2.2% Ecco SA 188 42,202 27399292 Elyo SA 1,250 57,038 27999322 Publicis SA 1,000 75,406 74499999 174,646 TOTAL SERVICES 363,081 TECHNOLOGY - 2.8% COMMUNICATIONS EQUIPMENT - 1.0% Com 1 SA (a) 1,600 81,980 19999722 ELECTRONICS - 1.8% Schneider SA 3,104 144,517 80699L22 TOTAL TECHNOLOGY 226,497 UTILITIES - 1.6% WATER - 1.6% Lyonnaise des Eaux Dumez SA 1,300 130,452 55160010 TOTAL COMMON STOCKS (Cost $6,301,048) 6,953,378 PREFERRED STOCKS - 3.1% SHARES VALUE (NOTE 1) CONVERTIBLE PREFERRED STOCKS - 1.2% HEALTH - 1.2% DRUGS & PHARMACEUTICALS - 1.2% Sanofi SA 4% 1,080 $ 96,682 91399A94 NONCONVERTIBLE PREFERRED STOCKS - 1.9% INDUSTRIAL MACHINERY & EQUIPMENT - 1.2% Legrand SA 726 93,206 52469992 RETAIL & WHOLESALE - 0.7% GROCERY STORES - 0.7% Casino Guichard Perrachon et Cie 2,170 59,075 14699192 TOTAL NONCONVERTIBLE PREFERRED STOCKS 152,281 TOTAL PREFERRED STOCKS (Cost $216,871) 248,963 CONVERTIBLE BONDS - 1.8% MOODY'S PRINCIPAL RATINGS AMOUNT (B) DURABLES - 1.8% AUTOS, TIRES, & ACCESSORIES - 1.8% Michelin SA (Compagnie Generale des Etablissements) 6%, 1/2/98 (Cost $148,596) - FRF 660,000 144,838 5941009D REPURCHASE AGREEMENTS - 8.1% MATURITY AMOUNT Investments in repurchase agreements (U.S. Treasury obligations) in a joint trading account at 5.33%, dated 4/30/96 due 5/1/96 $ 647,096 647,000 74199S8W TOTAL INVESTMENT IN SECURITIES - 100% (Cost $7,313,515) $ 7,994,179 CURRENCY ABBREVIATIONS FRF - French franc LEGEND (a) Non-income producing (b) Principal amount is stated in United States dollars unless otherwise noted. OTHER INFORMATION Purchases and sales of securities, other than short-term securities, aggregated $7,399,367 and $755,268, respectively. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of FMR. The commissions paid to these affiliated firms were $252 for the period. INCOME TAX INFORMATION At April 30, 1996, the aggregate cost of investment securities for income tax purposes was $7,313,515. Net unrealized appreciation aggregated $680,664, of which $771,353 related to appreciated investment securities and $90,689 related to depreciated investment securities. FRANCE FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1996 (UNAUDITED) ASSETS Investment in $ 7,994,179 securities, at value (including repurchase agreements of $647,000) (cost $7,313,515) - - See accompanyin g schedule Cash 499 Receivable for 65,290 investments sold Receivable for 36,634 fund shares sold Dividends 3,239 receivable Interest 549 receivable Redemption 181 fees receivable Prepaid 14,089 expenses TOTAL ASSETS 8,114,660 LIABILITIES Payable for $ 644,086 investments purchased Payable for 47,261 fund shares redeemed Accrued 3,118 management fee Other payables 23,853 and accrued expenses TOTAL 718,318 LIABILITIES NET ASSETS $ 7,396,342 Net Assets consist of: Paid in capital $ 6,707,474 Accumulated (13,923 net ) investment (loss) Accumulated 22,198 undistributed net realized gain (loss) on investments and foreign currency transactions Net unrealized 680,593 appreciation (depreciation ) on investments and assets and liabilities in foreign currencies NET ASSETS, for $ 7,396,342 631,798 shares outstanding NET ASSET $11.71 VALUE and redemption price per share ($7,396,342 (divided by) 631,798 shares) Maximum $12.07 offering price per share (100/97.00 of $11.71) STATEMENT OF OPERATIONS NOVEMBER 1, 1995 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1996 (UNAUDITED) INVESTMENT $ 12,182 INCOME Dividends Interest 26,082 38,264 Less foreign (1,633 taxes ) withheld TOTAL 36,631 INCOME EXPENSES Management $ 15,303 fee Transfer agent 5,933 fees Accounting 27,056 fees and expenses Non-interested 4 trustees' compensatio n Custodian fees 35,904 and expenses Registration 20,291 fees Audit 14,453 Total 118,944 expenses before reductions Expense (79,077 39,867 reductions ) NET (3,236 INVESTMENT ) INCOME (LOSS) REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) on: Investment 22,416 securities Foreign (218 22,198 currency ) transactions Change in net unrealized appreciation (depreciation ) on: Investment 680,664 securities Assets and (71 680,593 liabilities in ) foreign currencies NET GAIN (LOSS) 702,791 NET INCREASE $ 699,555 (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS OTHER $ 23,547 INFORMATION Sales charges paid to FDC Expense $ 35 reductions Custodian interest credits FMR 79,042 reimburseme nt $ 79,077 STATEMENT OF CHANGES IN NET ASSETS INCREASE NOVEMBER 1, 1995 (DECREASE) IN (COMMENCEMENT NET ASSETS OF OPERATIONS) TO APRIL 30, 1996 (UNAUDITED) Operations $ (3,236) Net investment income (loss) Net realized 22,198 gain (loss) Change in 680,593 net unrealized appreciation (depreciation ) NET INCREASE 699,555 (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS Distributions to (10,687) shareholders from net investment income Share 8,429,276 transactions Net proceeds from sales of shares Reinvestmen 10,618 t of distributions Cost of (1,746,182) shares redeemed Redemption 13,762 fees NET INCREASE 6,707,474 (DECREASE) IN NET ASSETS RESULTING FROM SHARE TRANSACTIO NS TOTAL 7,396,342 INCREASE (DECREASE) IN NET ASSETS NET ASSETS Beginning of - period End of period $ 7,396,342 (including accumulated net investment loss of $13,923) OTHER INFORMATION Shares Sold 794,008 Issued in 1,052 reinvestment of distributions Redeemed (163,262) Net increase 631,798 (decrease) SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FINANCIAL HIGHLIGHTS NOVEMBER 1, 1995 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1996 (UNAUDITED) SELECTED $ 10.00 PER-SHARE DATA Net asset value, beginning of period Income from Investment Operations Net (.01) F investment income (loss) Net realized 1.72 and unrealized gain (loss) Total from 1.71 investment operations Less (.04) Distributions From net investment income Redemption .04 fees added to paid in capital Net asset $ 11.71 value, end of period TOTAL RETURN B, 17.56% C RATIOS AND SUPPLEMENT AL DATA Net assets, $ 7,396 end of period (000 omitted) Ratio of 2.00% A, D expenses to average net assets Ratio of net (.16)% A investment income (loss) to average net assets Portfolio 42% A turnover rate Average $ .1879 commission rate E * ANNUALIZED * 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). * TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. * 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. * A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER. * NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. GERMANY PERFORMANCE: THE BOTTOM LINE There are several ways to evaluate a fund's historical performance. You can look at the total percentage change in value, the average annual percentage change, or the growth of a hypothetical $10,000 investment. Each performance figure includes changes in a fund's share price, plus reinvestment of any dividends (income) and capital gains (the profits the fund earns when it sells securities that have grown in value). The fund has a 3% sales charge. If Fidelity had not reimbursed certain fund expenses during the period shown, the total returns would have been lower. CUMULATIVE TOTAL RETURNS PERIOD ENDED PAST 6 APRIL 30, 1996 MONTHS * GERMANY 5.10% GERMANY (INCL. 3% SALES CHARGE) 1.95% Deutscher Akteinindex 100 3.30% European Region Funds Average 9.69% * LIFE OF FUND. CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms over a set period - in this case, six months (since the fund started on November 1, 1995). For example, if you invested $1,000 in a fund that had a 5% return over the past year, the value of your investment would be $1,050. You can compare the fund's returns to the performance of the Deutscher Akteinindex 100 - an unmanaged capitalization weighted index of the top 100 stocks on the German Securities Market. To measure how the fund's performance stacked up against its peers, you can compare the fund's performance to the European region funds average, which reflects the performance of 46 funds with similar objectives tracked by Lipper Analytical Services over the past six months. These benchmarks include reinvested dividends and capital gains, if any, and exclude the effects of sales charges. AVERAGE ANNUAL TOTAL RETURNS 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. In the fund's next report we'll report these numbers for the fund and the benchmarks. $10,000 OVER LIFE OF FUND The growth of a hypothetical $10,000 INVESTMENT in the fund will appear in the fund's next report. UNDERSTANDING PERFORMANCE Many markets around the globe offer the potential for significant growth over time; however, investing in foreign markets means assuming greater risks than investing in the United States. Factors like changes in a country's financial markets, its local political and economic climate, and the fluctuating value of its currency create these risks. For these reasons an international fund's performance may be more volatile than a fund that invests exclusively in the United States. Past performance is no guarantee of future results and you may have a gain or loss when you sell your shares. (checkmark) GERMANY FUND TALK: THE MANAGER'S OVERVIEW An interview with Simon Roberts, Portfolio Manager of Fidelity Germany Fund Q. SIMON, HOW HAS THE FUND PERFORMED? A. For the period ended April 30, 1996, the fund's total return was 5.10%, while its benchmark, the Deutscher Akteinindex 100, returned 3.30%, after a 7.40% depreciation of the German deutsche mark versus the U.S. dollar. The total return for the European region funds average was 9.69%, according to Lipper Analytical Services. Q. WHAT HAS THE INVESTMENT ENVIRONMENT BEEN LIKE FOR THE GERMAN MARKET DURING THE PAST SIX MONTHS? A. The German market ended 1995 and began 1996 on quite a strong note, outperforming most other European markets. I would say there were two primary reasons for this. First, there was widespread optimism that the U.S. dollar would continue to strengthen against the deutsche mark. Many German companies are dependent on exports, so a weakening mark has historically helped stock prices. The second factor was that the German economy has struggled with weak domestic demand, especially in the retail and construction sectors. This economic sluggishness, coupled with little inflationary pressure, led the Bundesbank to reduce short-term rates, helping stock prices to rise. Since January, the German market has somewhat underperformed the rest of Europe as domestic softness has led to downgrades in earnings expectations. Q. HOW HAVE YOU STRUCTURED THE PORTFOLIO SO FAR? A. I have tried not to focus the fund's holdings too heavily in any one sector. I tend to use input from our team of analysts to help me find the stocks within each sector I feel are the most promising. Then, I may take a somewhat overweighted position in one or two stocks. That said, the auto sector is one that I feel fits that criteria. Car sales had been running below long-term trend levels, and they picked up during the first quarter of 1996, both in Germany and the rest of Europe. I was overweighted in a couple of the auto stocks, specifically Volkswagen and Porsche. Q. WHY DID YOU CHOOSE THOSE TWO? A. Well, a couple of years ago, both companies embarked on major restructuring programs to cut costs and revamp their product lines. Even though they are still only partway through these programs, I feel they've taken strong steps in the right direction. There's still further work to be done in reducing overall costs, but sales volumes have picked up without having to lower prices, so the results are beginning to show. Q. YOU'VE HAD SIZABLE POSITIONS IN BANK STOCKS AS WELL AS CHEMICAL AND PHARMACEUTICAL COMPANIES. WHAT'S BEEN YOUR THINKING IN THOSE AREAS? A. Actually, my position in banks is in line with the index. There has been pressure on net interest margins in the bank sector for some time, as a result of increasing competition within Germany. Some of the banks are starting to recognize that and, again, the key to me is their ability to control the cost side. I feel that Deutsche Bank and Bayerische Hypotheken-und Wechselbank are the ones that have made the strongest moves toward controlling their costs. There is, I feel, considerable overlap between the chemical and pharmaceutical sectors - driven by the pharmaceutical side, since most of the large chemical companies also have big pharmaceutical divisions. If you add the two together, I've been slightly underweighted overall relative to the index, but I'm fairly optimistic about the long-term prospects of the pharmaceutical side. The fund had large positions in Hoechst and Bayer that performed particularly well during most of the period. Q. WHERE HAS THE FUND BEEN UNDERWEIGHTED COMPARED TO THE INDEX? A. I would say that the insurance sector is one in particular. The insurance rate environment has been weak for some time, and I don't see that turning around very quickly. Historically, insurance companies in the German market have enjoyed higher profit margins than in many other European countries and, as a result, many of those companies have been slow in moving toward providing shareholder value. Due to current overcapacity in the insurance market, we've seen large cuts in rates for their fire, property and auto lines. Q. HAVE ANY STOCKS IN THE PORTFOLIO PROVED TO BE DISAPPOINTMENTS? A. As it happens, my biggest regret was reducing a position that turned out to be better than I had anticipated. Veba, an electric utility stock, was one that I had been positive on for quite some time. I became cautious about the stock and reduced the fund's holdings in it for most of the period, but the company's continued success has led me to re-evaluate it and by the end of the period, I had built the fund's holdings back up. Still, it was a missed opportunity not to have stayed with the stock through the period. I also might say that I could have been more fully invested in the chemical sector, if I had known how prepared the market was to recognize value in the pharmaceutical aspect of the business. Q. WHAT WOULD YOU SAY YOUR OUTLOOK IS OVER THE NEXT SEVERAL MONTHS? A. I think the majority of earnings downgrades may have occurred by now. Given the weak domestic economy and high unemployment, there may be some room for further interest rate cuts, as well as possible further weakening of the deutsche mark. Because of the cyclical nature of many parts of the German market, especially autos and chemicals, a declining mark in particular could serve to help the stock market going forward. FUND FACTS GOAL: long-term growth of capital by investing mainly in equity securities of German issuers TRADING SYMBOL: FGERF* START DATE: November 1, 1995 SIZE: as of April 30, 1996, more than $6 million MANAGER: Simon Roberts, since November 1995; joined Fidelity in 1992 * TEMPORARY TRADING SYMBOL (checkmark) SIMON ROBERTS ON HIS INVESTMENT STYLE: "I don't follow a particular style that you can neatly sum up into one phrase, such as value investor or growth investor. I suppose my style is more of a hybrid, trying to take from the best of all the investing disciplines. I pay close attention to, and actively participate in, the determinations made by our internal research staff as to the overall health and quality of the companies we examine. I'm basically looking for any type of difference in valuation from the consensus out in the marketplace. Sometimes that difference can be finding something that's going to drive earnings faster than the market thinks, or running financial projections that produce different results than those of outside analysts. I think it's a style that's well suited to the German market in particular. Many of the classic growth companies are private and therefore not even listed on the exchange. That leaves much of the market dominated by cyclical companies. In that kind of environment, I feel you have to be prepared to find undervalued and turnaround situations on a stock-by-stock basis. And with the considerable analytical resources that I have available to me within Fidelity, I'll continue to favor this approach over making large and more risky industry allocations." 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. GERMANY INVESTMENT SUMMARY GEOGRAPHIC DIVERSIFICATION AS OF APRIL 30, 1996 Other 3.3% Row: 1, Col: 1, Value: 3.3 Row: 1, Col: 2, Value: 96.7 Germany 96.7% ASSET ALLOCATION % OF FUND'S INVESTMENTS Common Stocks 81.2 Preferred Stocks 18.8 TOP TEN STOCKS % OF FUND'S INVESTMENTS Deutsche Bank AG 6.6 (Banks) Veba AG Ord. 6.3 (Electric Utility) Daimler-Benz AG Ord. 6.2 (Autos, Tires, & Accessories) Bayer AG 5.7 (Chemicals & Plastics) Siemens AG 5.3 (Electrical Equipment) RWE AG 4.7 (Electric Utility) Mannesmann AG Ord. 4.6 (Iron & Steel) Volkswagen AG 4% 4.5 (Autos, Tires, & Accessories) Porsche AG 4.0 (Autos, Tires, & Accessories) Schering AG 3.3 (Drugs & Pharmaceuticals) TOP TEN MARKET SECTORS % OF FUND'S INVESTMENTS Basic Industries 23.6 Durables 20.3 Finance 18.3 Utilities 11.7 Health 8.0 Industrial Machinery & Equipment 6.7 Retail & Wholesale 5.9 Transportation 2.6 Energy 1.4 Media & Leisure 1.1 GERMANY INVESTMENTS APRIL 30, 1996 (UNAUDITED) Showing Percentage of Total Value of Investment in Securities COMMON STOCKS - 81.2% SHARES VALUE (NOTE 1) BASIC INDUSTRIES - 22.9% CHEMICALS & PLASTICS - 10.0% Bayer AG (a) 1,100 $ 354,038 07273010 Degussa AG 525 188,853 24479322 Sommer-Allibert Industrie AG 1,600 64,867 83699F22 Wella AG 30 13,475 94599922 621,233 IRON & STEEL - 5.5% BOEHLER-UDDEHOLM AG (a) 700 57,102 09699D22 Mannesmann AG Ord. 827 282,370 56377510 339,472 METALS & MINING - 7.4% Metallgesellschaft AG Ord. 10,000 187,890 59124810 Viag AG 436 170,927 92552999 Viag AG (New) 142 54,510 92552997 Vossloh AG (Reg.) 160 46,013 95399192 459,340 TOTAL BASIC INDUSTRIES 1,420,045 CONSTRUCTION & REAL ESTATE - 0.4% BUILDING MATERIALS - 0.4% Tarkett AG 1,000 22,850 91499L22 DURABLES - 9.9% AUTOS, TIRES, & ACCESSORIES - 8.4% Continental Gummi-Werke AG 4,000 69,071 21199010 Daimler-Benz AG Ord. 700 383,189 23382910 Kolbenschmidt AG 600 68,157 50799792 520,417 TEXTILES & APPAREL - 1.5% Adidas AG 1,220 92,789 00699D22 TOTAL DURABLES 613,206 ENERGY - 1.4% OIL & GAS - 1.4% OEMV AG 700 69,510 67399592 RWE-DEA AG fuer Mineraloele und Chemie 75 18,998 78399M22 88,508 FINANCE - 17.8% BANKS - 13.6% Bayerische Hypotheken-und Wechselbank AG 3,700 91,984 07273110 Bayerische Vereinsbank AG Ord. 3,600 105,761 07276110 Commerzbank AG 875 189,367 20259710 Deutsche Bank AG 8,480 406,187 25152592 Dresdner Bank AG Ord. 2,000 50,295 26156110 843,594 INSURANCE - 4.2% Marschollek Lautenschlaeger und Partner AG 70 76,318 57199A22 Munich Reinsurance AG (Reg.) 100 181,492 62699492 257,810 TOTAL FINANCE 1,101,404 HEALTH - 7.8% DRUGS & PHARMACEUTICALS - 4.9% Altana AG 60 36,977 02199C92 Schering AG 2,800 205,647 80658510 Schwarz Pharma AG 1,000 61,041 80899K22 303,665 SHARES VALUE (NOTE 1) MEDICAL EQUIPMENT & SUPPLIES - 2.3% Gehe AG 250 $ 144,279 68199492 MEDICAL FACILITIES MANAGEMENT - 0.6% Rhoen Klinikum AG 300 36,233 76299494 TOTAL HEALTH 484,177 INDUSTRIAL MACHINERY & EQUIPMENT - 6.7% ELECTRICAL EQUIPMENT - 5.3% Siemens AG 604 330,559 82619710 INDUSTRIAL MACHINERY & EQUIPMENT - 1.4% AGIV AG Fuer Industrie & Verkehrswesen 4,000 85,131 00899392 TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 415,690 MEDIA & LEISURE - 1.1% PUBLISHING - 1.1% Springer Axel Verlag AG (Reg.) 102 65,592 85029999 RETAIL & WHOLESALE - 3.6% GENERAL MERCHANDISE STORES - 3.6% Asko 150 89,114 04508110 Hornbach Baumarket AG (Bearer) 500 18,933 44099A22 Karstadt AG 300 111,990 48576499 220,037 TRANSPORTATION - 2.6% AIR TRANSPORTATION - 2.6% Lufthansa 1,000 158,512 54976510 UTILITIES - 7.0% ELECTRIC UTILITY - 7.0% EVN (Energie-Versor Nieder) 300 43,849 30099292 Veba AG Ord. 7,800 387,518 92239110 431,367 TOTAL COMMON STOCKS (Cost $4,881,834) 5,021,388 NONCONVERTIBLE PREFERRED STOCKS - 18.8% BASIC INDUSTRIES - 0.7% CHEMICALS & PLASTICS - 0.7% Henkel KGAA 120 45,987 42509392 DURABLES - 10.4% AUTOS, TIRES, & ACCESSORIES - 8.5% Porsche AG (a) 450 245,895 73380110 Volkswagen AG 4% 1,100 279,354 92866291 525,249 TEXTILES & APPAREL - 1.9% Boss (Hugo) AG 65 64,926 44451094 Puma AG 150 51,901 74599B22 116,827 TOTAL DURABLES 642,076 FINANCE - 0.5% BANKS - 0.5% Creditanstalt Bankverein 550 30,676 22539210 HEALTH - 0.2% DRUGS & PHARMACEUTICALS - 0.2% Biotest AG 30 10,204 09099C22 NONCONVERTIBLE PREFERRED STOCKS - CONTINUED SHARES VALUE (NOTE 1) RETAIL & WHOLESALE - 2.3% GENERAL MERCHANDISE STORES - 1.4% Kaufhof Holding AG 380 $ 90,302 48615294 GROCERY STORES - 0.4% Spar Handels AG 115 23,124 84699092 RETAIL & WHOLESALE, MISCELLANEOUS - 0.5% Hornbach AG 500 31,990 44050799 TOTAL RETAIL & WHOLESALE 145,416 UTILITIES - 4.7% ELECTRIC UTILITY - 4.7% RWE AG 10,000 290,844 76204599 TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $1,162,074) 1,165,203 TOTAL INVESTMENT IN SECURITIES - 100% (Cost $6,043,908) $ 6,186,591 LEGEND (a) Non-income producing OTHER INFORMATION Purchases and sales of securities, other than short-term securities, aggregated $7,507,850 and $1,457,076, respectively. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of FMR. The commissions paid to these affiliated firms were $2,507 for the period. INCOME TAX INFORMATION At April 30, 1996, the aggregate cost of investment securities for income tax purposes was $6,043,908. Net unrealized appreciation aggregated $142,683, of which $320,568 related to appreciated investment securities and $177,885 related to depreciated investment securities. GERMANY FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1996 (UNAUDITED) ASSETS Investment in $ 6,186,591 securities, at value (cost $6,043,908) - - See accompanyin g schedule Receivable for 233,239 investments sold Receivable for 3,390 fund shares sold Prepaid 14,089 expenses Receivable 9,378 from investment adviser for expense reductions TOTAL ASSETS 6,446,687 LIABILITIES Payable to $ 125,244 custodian bank Payable for 91,958 investments purchased Payable for 19,530 fund shares redeemed Other payables 23,135 and accrued expenses TOTAL 259,867 LIABILITIES NET ASSETS $ 6,186,820 Net Assets consist of: Paid in capital $ 6,067,504 Accumulated (16,296 net ) investment (loss) Accumulated (7,056 undistributed ) net realized gain (loss) on investments and foreign currency transactions Net unrealized 142,668 appreciation (depreciation ) on investments and assets and liabilities in foreign currencies NET ASSETS, for $ 6,186,820 588,780 shares outstanding NET ASSET $10.51 VALUE and redemption price per share ($6,186,820 (divided by) 588,780 shares) Maximum $10.84 offering price per share (100/97.00 of $10.51) STATEMENT OF OPERATIONS NOVEMBER 1, 1995 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1996 (UNAUDITED) INVESTMENT $ 23,428 INCOME Dividends Interest 4,999 28,427 Less foreign (2,343 taxes ) withheld TOTAL 26,084 INCOME EXPENSES Management $ 16,344 fee Transfer agent 6,747 fees Accounting 27,322 fees and expenses Non-interested 5 trustees' compensatio n Custodian fees 20,016 and expenses Registration 20,296 fees Audit 14,452 Total 105,182 expenses before reductions Expense (62,802 42,380 reductions ) NET (16,296 INVESTMENT ) INCOME (LOSS) REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) on: Investment (6,866 securities ) Foreign (190 (7,056 currency ) ) transactions Change in net unrealized appreciation (depreciation ) on: Investment 142,683 securities Assets and (15 142,668 liabilities in ) foreign currencies NET GAIN (LOSS) 135,612 NET INCREASE $ 119,316 (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS OTHER $ 35,750 INFORMATION Sales charges paid to FDC Expense $ 171 reductions Custodian interest credits Transfer 10 agent interest credits FMR 62,621 reimburseme nt $ 62,802 STATEMENT OF CHANGES IN NET ASSETS INCREASE NOVEMBER 1, 1995 (DECREASE) IN (COMMENCEMENT NET ASSETS OF OPERATIONS) TO APRIL 30, 1996 (UNAUDITED) Operations $ (16,296 Net ) investment income (loss) Net realized (7,056 gain (loss) ) Change in 142,668 net unrealized appreciation (depreciation ) NET INCREASE 119,316 (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS Share 7,289,958 transactions Net proceeds from sales of shares Cost of (1,232,853 shares ) redeemed Redemption 10,399 fees NET INCREASE 6,067,504 (DECREASE) IN NET ASSETS RESULTING FROM SHARE TRANSACTIO NS TOTAL 6,186,820 INCREASE (DECREASE) IN NET ASSETS NET ASSETS Beginning of - period End of period $ 6,186,820 (including accumulated net investment loss of $16,296) OTHER INFORMATION Shares Sold 704,316 Redeemed (115,536 ) Net increase 588,780 (decrease) SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FINANCIAL HIGHLIGHTS NOVEMBER 1, 1995 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1996 SELECTED (UNAUDITED) PER-SHARE DATA Net asset $ 10.00 value, beginning of period Income from Investment Operations Net (.03) investment income (loss) Net realized .52 and unrealized gain (loss) Total from .49 investment operations Redemption .02 fees added to paid in capital Net asset $ 10.51 value, end of period TOTAL RETURN B, 5.10% C RATIOS AND SUPPLEMENT AL DATA Net assets, $ 6,187 end of period (000 omitted) Ratio of 2.00% A, D expenses to average net assets Ratio of net (.77)% A investment income (loss) to average net assets Portfolio 74% A turnover rate Average $ .2294 commission rate E * ANNUALIZED * 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). * TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. * 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. * A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER. HONG KONG AND CHINA PERFORMANCE: THE BOTTOM LINE There are several ways to evaluate a fund's historical performance. You can look at the total percentage change in value, the average annual percentage change, or the growth of a hypothetical $10,000 investment. Each performance figure includes changes in a fund's share price, plus reinvestment of any dividends (income) and capital gains (the profits the fund earns when it sells securities that have grown in value). The fund has a 3% sales charge. If Fidelity had not reimbursed certain fund expenses during the period shown, the total returns would have been lower. CUMULATIVE TOTAL RETURNS PERIOD ENDED PAST 6 APRIL 30, 1996 MONTHS * HONG KONG AND CHINA 11.51% HONG KONG AND CHINA (INCL. 3% SALES CHARGE) 8.17% Hang Seng Index 13.79% Pacific Ex-Japan Funds Average 11.34% * LIFE OF FUND. CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms over a set period - in this case, six months (since the fund started on November 1, 1995). For example, if you invested $1,000 in a fund that had a 5% return over the past year, the value of your investment would be $1,050. You can compare the fund's returns to the performance of the Hang Seng Index - an unmanaged capitalization weighted index of total return performance of the top 33 companies on the Hang Seng. You can also compare the fund's performance to the Pacific Ex-Japan funds average, which reflects the performance of 51 funds with similar objectives tracked by Lipper Analytical Services during the period shown. These benchmarks include reinvested dividends and capital gains, if any, and exclude the effects of sales charges. AVERAGE ANNUAL TOTAL RETURNS 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. In the fund's next report we'll report these numbers for the fund and the benchmarks. $10,000 OVER LIFE OF FUND The growth of a hypothetical $10,000 INVESTMENT in the fund will appear in the fund's next report. UNDERSTANDING PERFORMANCE Many markets around the globe offer the potential for significant growth over time; however, investing in foreign markets means assuming greater risks than investing in the United States. Factors like changes in a country's financial markets, its local political and economic climate, and the fluctuating value of its currency create these risks. For these reasons an international fund's performance may be more volatile than a fund that invests exclusively in the United States. Past performance is no guarantee of future results and you may have a gain or loss when you sell your shares. (checkmark) HONG KONG AND CHINA FUND TALK: THE MANAGER'S OVERVIEW An interview with Joseph Tse, Portfolio Manager of Fidelity Hong Kong and China Fund Q. HOW DID THE FUND PERFORM, JOSEPH? A. The fund had a total return of 11.51% from its inception date - November 1, 1995 - through April 30, 1996. During that same period, the Pacific Ex-Japan funds average returned 11.34%, according to Lipper Analytical Services, and the Hang Seng Index returned 13.79%. Q. WHAT WAS THE INVESTING ENVIRONMENT LIKE IN THE REGION OVER THE PAST SIX MONTHS? A. The Hong Kong stock market did quite well, primarily led by overseas funds flowing into Asia, and especially into Hong Kong. The fund was a recipient of these inflows, and has grown more quickly than expected. Therefore, the average cash balance during the period was higher than I desired - hovering around 7%, rather than the 3% I prefer. This higher-than-desired level of cash hurt the fund's performance by keeping it from fully participating in the strong Hong Kong stock market. Q. IT SEEMS LIKE THE LESS FUNDAMENTALLY SOUND COMPANIES WERE THE MARKET LEADERS DURING MUCH OF THE PERIOD. A. That's an accurate statement for at least the first half of the period. The stage was set for these stocks to rally in 1995 when the stock market was up about 20%, led by the more fundamentally sound firms within the large-cap sector. As new funds continued to flow in over the past six months, I directed them toward the less-sound companies - those whose stocks did not gain as substantially during the 1995 rally. But over the past month or two, the more fundamentally sound companies began to rebound and led the market forward in the later stages of the fund's reporting period. Q. WHAT ARE THE KEY SECTORS OF THE HONG KONG AND CHINA MARKET? A. There are really only four major sectors in the Hang Seng Index benchmark for the market - property stocks, which are about 40% of the stock market; banks, at about 20%-25%; conglomerates are another 20% or so; and utilities are the last 15% to 20%. Behind these major sectors are a host of smaller-cap companies. But on a risk-reward basis, the smaller companies haven't done as well as the larger cap companies. I believe their managements and fundamentals generally are just not as sound. Q. SO WHAT WAS YOUR INVESTMENT STRATEGY DURING THE FUND'S FIRST REPORTING PERIOD? A. As I indicated earlier, the fund had a large-cap weighting, although it did pretty well investing in small caps at the outset of the period. As the fund grew, though, its percentage invested in small caps dropped significantly, and they haven't been an important part of the holdings in some time. The fund's largest holdings at the end of the period were in the property sector, adding up to about 35% of the fund's total investments. The phenomenon here in Hong Kong is that land is a finite resource and people have very small places to live in. On the demand side, many people desperately want to trade up to live a little more comfortably. With population growth of about 2% per annum, including immigrants from China, it creates very steady demand. On the supply side, the land is limited. People spend about 50% of their monthly income on property and they're willing to do so. For these reasons then, property developers historically have outperformed the benchmark of the general stock market. During the period, Sun Hung Kai Properties - a property developer and the fund's second-largest holding - performed well, as did Henderson Land Development. Cheung Kong Holdings - another property developer - also did well. Q. THE FINANCE SECTOR WAS YOUR SECOND LARGEST AREA OF CONCENTRATION. HOW DID THIS WORK OUT FOR THE FUND? A. The finance sector of the Hang Seng Index includes three major banks - Hong Kong and Shanghai Bank (HSBC), which was the fund's largest holding at the end of the period, Hang Seng Bank and Bank of East Asia. Together, these three holdings make up about 25% of the fund's benchmark index. The fund's banking holdings - including HSBC, Heng Seng Bank and Wing Hang Bank - - comprised just under 20% of investments at the end of the period. The sector did very well over the past six months, with loan growth increasing about 20% per annum. Hang Seng Bank, in particular, performed very well during the period. Q. THE FUND OWNED COMPANIES WITH DIVERSIFIED HOLDINGS - SUCH AS HUTCHISON WHAMPOA, YOUR THIRD-LARGEST INVESTMENT. A. Hutchison Whampoa has been a good example of why I've liked the more diversified companies and another example of why the fund was more heavily invested in larger-cap companies. The larger diversified companies are involved in many different businesses, including ports, cellular and fixed-line telephone services, retailing, and infrastructure development. Because of their excellent connections and their very deep pockets, they have major advantages over smaller companies in moving into new geographical markets - such as China - and into new lines of business. Most big companies are getting bigger, not just in this sector, but across the market in Hong Kong. It's the big companies that generally are winning all the good projects in both Hong Kong and China. And I think this trend will continue in this region. Holding company Jardine Matheson, a diversified company with interests in trading, distribution, hotels and restaurants, property, financial services and retail, also performed well. This company was a turnaround situation. Q. WHAT IS THE FUND'S EXPOSURE TO CHINA? A. The fund's direct exposure to China was near zero. The companies whose stocks trade in China consistently have reported earnings well below expectations. To me, these businesses are just not competitive, they are not run professionally and they are not run to maximize shareholder value. The fund's exposure to China comes through its investments in Hong Kong-based companies - including Hutchison Whampoa through its investments in Chinese ports, and New World Development through its investments in toll roads, bridges, power plants and government housing. While these companies generate just a small portion of their overall revenues from China, Goldlion - a branded garment manufacturer and wholesaler based in Hong Kong - - garners the majority of its business from the mainland. Q. WHAT WERE THE DISAPPOINTMENTS? A. The major disappointment was CEPA - Consolidated Electric Power Asia - most of which I've sold. CEPA is an independent power producer that had good fundamentals. However, operational problems and political problems hurt the stock during the period. It seemed to be just one problem after another. I also wish the fund had owned more Hang Seng Bank, which performed very well during the period. Property investment companies - as opposed to the property developers - also disappointed, as they were in a down cycle during much of the period. I'm trying to anticipate the bottom of this market to gain the full potential of its rebound. Q. WHAT'S YOUR OUTLOOK FOR THE NEXT SEVERAL MONTHS? A. I think people will be increasingly bullish about this region as we move closer to Hong Kong coming under Chinese control. I believe the Hong Kong market has been selling at a discount for some years due to the uncertainty of the changeover coming in June 1997. Hong Kong's P/E (price to earnings) multiple has been around 10-12X for some time, compared to P/Es closer to 20X for our regional counterparts, including Malaysia, Thailand and Singapore. After the changeover to official Chinese rule, I think that discount will be removed. Remember, Hong Kong is China and China is Hong Kong, and one of the best ways to invest in China is to invest in Hong Kong. Hong Kong and China have similar growth rates to these other regions, but this region is valued lower because of the concerns about next year's changeover. FUND FACTS GOAL: long-term growth of capital by investing mainly in equity securities of Hong Kong and Chinese issuers START DATE: November 1, 1995 TRADING SYMBOL: FHKCX SIZE: as of April 30, 1996, more than $75 million MANAGER: Joseph Tse, since November 1995; director of research, Fidelity Investments Management [Hong Kong], since 1994; manager, Asian portion of various global equity funds, since 1993; analyst covering Hong Kong and Chinese equities, 1990 to 1993; joined Fidelity in 1990 (checkmark) JOSEPH TSE ON INVESTING IN THE HONG KONG/CHINA REGION: "Shareholders should understand that Hong Kong is not that big or diverse a securities market. Of the approximately 500 stocks listed in Hong Kong, only about 50 are very actively traded. With the fund growing to its current size very quickly, I felt I had to be in large caps to be able to move in and out of stocks easily and maintain the fund's liquidity and flexibility. That's why the fund's major holdings - regardless of the sector - have been larger-cap stocks. "I also prefer to invest in growth companies and, because of the characteristics of this market, I prefer strategically well-positioned companies. Sometimes I have to be a little bit lenient on the pricing because my universe is relatively small and there aren't that many alternatives. So I'm sometimes forced to invest in companies with P/Es higher than I would like. I also look for quality management teams with a commitment to the long-term prosperity of this region. I think the value approach is not appropriate to this market. This is a growth market. Value stocks do well when the market goes down, and the market has tended to go up here. Interestingly, if I were to take the value approach, the fund's holdings would be very different, comprised mainly of small-cap stocks, not the larger companies. I'd be holding hundreds of companies that are very cheap. But I think the risk-reward would be very bad. My style is driven by my universe - and in Hong Kong and China, growth is the key factor. If I were in another market, I might be a value investor, but not here." 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. HONG KONG AND CHINA INVESTMENT SUMMARY GEOGRAPHIC DIVERSIFICATION AS OF APRIL 30, 1996 Other 3.6% Row: 1, Col: 1, Value: 3.6 Row: 1, Col: 2, Value: 96.40000000000001 Hong Kong 96.4% ASSET ALLOCATION % OF FUND'S INVESTMENTS Stocks 98.3 Short-term investments 1.7 TOP TEN STOCKS % OF FUND'S INVESTMENTS HSBC Holdings PLC 12.6 (Banks) Sun Hung Kai Properties Ltd. 10.0 (Real Estate) Hutchison Whampoa Ltd. Ord 8.8 (Electrical Equipment) Cheung Kong Holdings Ltd. 6.1 (Real Estate) Henderson Land Development Co. Ltd. 5.0 (Real Estate) Hang Seng Bank Ltd. 5.0 (Banks) Wharf Holdings Ltd. 4.9 (Real Estate) Great Eagle Holdings Ltd. 4.2 (Real Estate) Jardine Matheson Holdings Ltd. Ord. 4.1 (Holding Companies) Hong Kong & China Gas Co. Ltd. 3.6 (Gas) TOP TEN MARKET SECTORS % OF FUND'S INVESTMENTS Construction & Real Estate 35.8 Finance 22.2 Industrial Machinery & Equipment 10.0 Holding Companies 9.9 Utilities 8.5 Transportation 4.3 Media & Leisure 4.1 Retail & Wholesale 2.3 Nondurables 1.0 Basic Industries 0.2 HONG KONG AND CHINA INVESTMENTS APRIL 30, 1996 (UNAUDITED) Showing Percentage of Total Value of Investment in Securities COMMON STOCKS - 98.3% SHARES VALUE (NOTE 1) BASIC INDUSTRIES - 0.2% IRON & STEEL - 0.2% Maanshan Iron & Steel Co. Ltd. Class H 1,200,000 $ 178,394 59199C22 CONSTRUCTION & REAL ESTATE - 35.8% REAL ESTATE - 35.8% Cheung Kong Holdings Ltd. 633,000 4,521,019 16674410 Great Eagle Holdings Ltd. 1,095,532 3,143,970 39099394 Henderson China Holdings Ltd. (a) 14,960 41,482 42599322 Henderson Land Development Co. Ltd. 514,000 3,687,708 42599010 Hon Kwok Land Investment Ltd. Ord. 100,000 34,903 43899192 Hysan Development Co. Ltd. 726,000 2,332,187 44916510 Hysan Development Co. Ltd. (warrants) (a) 49,600 - 44916594 New World Development Co. 388,307 1,741,827 65171310 Sun Hung Kai Properties Ltd. 773,000 7,369,566 86676H10 Wharf Holdings Ltd. (b) 975,000 3,611,018 96299110 26,483,680 DURABLES - 0.0% AUTOS, TIRES, & ACCESSORIES - 0.0% Sime Darby Hongkong Ltd. 36,000 34,903 82899392 FINANCE - 22.2% BANKS - 19.7% HSBC Holdings PLC 629,900 9,337,824 42199192 Hang Seng Bank Ltd. 362,000 3,673,488 40987820 Wing Hang Bank Ltd. 435,000 1,591,388 97499522 14,602,700 CREDIT & OTHER FINANCE - 1.2% JCG Holdings Ltd. 939,000 867,905 46799792 INSURANCE - 1.3% National Mutual Asia Ltd. 1,134,000 960,185 63699592 TOTAL FINANCE 16,430,790 HOLDING COMPANIES - 9.9% Citic Pacific Ltd. Ord. 379,000 1,489,406 45299792 First Pacific Co. Ltd. 637,000 848,159 33699192 Jardine Matheson Holdings Ltd. Ord. 379,100 3,032,800 47111596 Jardine Strategic Holdings Ltd. Ord. 235,000 770,800 47111993 Wheelock & Co. Ltd. 571,000 1,166,255 98150010 7,307,420 INDUSTRIAL MACHINERY & EQUIPMENT - 10.0% ELECTRICAL EQUIPMENT - 10.0% Hutchison Whampoa Ltd. Ord. 1,052,000 6,527,657 44841510 Johnson Electric Holdings Ltd. 374,000 846,077 47908792 7,373,734 MEDIA & LEISURE - 4.1% BROADCASTING - 0.9% Television Broadcast Limited Ord. 158,000 633,168 87953110 LODGING & GAMING - 2.7% Mandarin Oriental International Ltd. 801,000 1,137,420 56259493 Hong Kong & Shanghai Hotels 466,000 804,206 71899292 Sino Hotels Holdings Ltd. 348,000 92,222 84299C22 2,033,848 PUBLISHING - 0.5% Oriental Press Group Ltd. 790,000 367,646 68620099 TOTAL MEDIA & LEISURE 3,034,662 NONDURABLES - 1.0% FOODS - 1.0% Tingyi Holding Co. (a) 2,760,000 767,093 90899G22 SHARES VALUE (NOTE 1) RETAIL & WHOLESALE - 2.3% APPAREL STORES - 1.0% Goldlion Holdings Ltd. 842,000 $ 707,499 38199C92 RETAIL & WHOLESALE, MISCELLANEOUS - 1.3% Dickson Concepts International Ltd. 844,000 976,486 25399210 TOTAL RETAIL & WHOLESALE 1,683,985 TRANSPORTATION - 4.3% AIR TRANSPORTATION - 3.6% Swire Pacific Ltd. 380,000 515,790 87079492 Swire Pacific Ltd. Class A 255,500 2,179,893 87079410 2,695,683 TRUCKING & FREIGHT - 0.7% New World Infrastructure Ltd. (a) 217,400 483,380 64928P92 TOTAL TRANSPORTATION 3,179,063 UTILITIES - 8.5% ELECTRIC UTILITY - 2.9% Consolidated Electric Power Asia Ltd. 247,000 408,703 20855292 Hong Kong Electric Holdings Ord. 436,000 1,386,507 43858010 Huaneng Power International, Inc. Class N sponsored ADR (a) 24,423 381,609 44330410 2,176,819 GAS - 3.6% Hong Kong & China Gas Co. Ltd. 1,610,200 2,643,528 43855010 Hong Kong & China Gas Co. Ltd. (warrants) (a) 135,600 - 43855094 2,643,528 TELEPHONE SERVICES - 2.0% Hong Kong Telecommunications Ltd. 785,800 1,493,020 43857991 TOTAL UTILITIES 6,313,367 TOTAL COMMON STOCKS (Cost $72,494,202) 72,787,091 REPURCHASE AGREEMENTS - 1.7% MATURITY AMOUNT Investments in repurchase agreements (U.S. Treasury obligations) in a joint trading account at 5.33%, dated 4/30/96 due 5/1/96 $ 1,262,187 1,262,000 74199S8W TOTAL INVESTMENT IN SECURITIES - 100% (Cost $73,756,202) $ 74,049,091 LEGEND (a) Non-income producing (b) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the period end, the value of these securities amounted to $3,611,018 or 4.8% of net assets. OTHER INFORMATION Purchases and sales of securities, other than short-term securities, aggregated $89,041,181 and $16,786,635, respectively. INCOME TAX INFORMATION At April 30, 1996, the aggregate cost of investment securities for income tax purposes was $73,756,202. Net unrealized appreciation aggregated $292,889, of which $2,294,293 related to appreciated investment securities and $2,001,404 related to depreciated investment securities. HONG KONG AND CHINA FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1996 (UNAUDITED) ASSETS Investment in $ 74,049,091 securities, at value (including repurchase agreements of $1,262,000) (cost $73,756,202) - - See accompanyin g schedule Cash 251 Receivable for 1,270,539 investments sold Receivable for 466,460 fund shares sold Dividends 615,073 receivable Redemption 3,010 fees receivable Prepaid 14,089 expenses TOTAL ASSETS 76,418,513 LIABILITIES Payable for $ 619,011 investments purchased Payable for 406,041 fund shares redeemed Accrued 47,366 management fee Other payables 85,448 and accrued expenses TOTAL 1,157,866 LIABILITIES NET ASSETS $ 75,260,647 Net Assets consist of: Paid in capital $ 74,164,796 Undistributed 563,811 net investment income Accumulated 239,291 undistributed net realized gain (loss) on investments and foreign currency transactions Net unrealized 292,749 appreciation (depreciation ) on investments and assets and liabilities in foreign currencies NET ASSETS, for $ 75,260,647 6,753,957 shares outstanding NET ASSET $11.14 VALUE and redemption price per share ($75,260,647 (divided by) 6,753,957 shares) Maximum $11.48 offering price per share (100/97.00 of $11.14) STATEMENT OF OPERATIONS NOVEMBER 1, 1995 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1996 (UNAUDITED) INVESTMENT $ 882,386 INCOME Dividends Interest 98,453 980,839 Less foreign (35,440 taxes ) withheld TOTAL 945,399 INCOME EXPENSES Management $ 142,529 fee Transfer agent 63,302 fees Accounting 27,323 fees and expenses Non-interested 34 trustees' compensatio n Custodian fees 82,838 and expenses Registration 47,824 fees Audit 15,000 Total 378,850 expenses before reductions Expense (8,559 370,291 reductions ) NET 575,108 INVESTMENT INCOME REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) on: Investment 239,656 securities Foreign (365 239,291 currency ) transactions Change in net unrealized appreciation (depreciation ) on: Investment 292,889 securities Assets and (140 292,749 liabilities in ) foreign currencies NET GAIN (LOSS) 532,040 NET INCREASE $ 1,107,148 (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS OTHER $ 423,436 INFORMATION Sales charges paid to FDC Expense $ 232 reductions Transfer agent interest credits FMR 8,327 reimburseme nt $ 8,559 STATEMENT OF CHANGES IN NET ASSETS INCREASE NOVEMBER 1, 1995 (DECREASE) IN (COMMENCEMENT NET ASSETS OF OPERATIONS) TO APRIL 30, 1996 (UNAUDITED) Operations $ 575,108 Net investment income Net realized 239,291 gain (loss) Change in 292,749 net unrealized appreciation (depreciation ) NET INCREASE 1,107,148 (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS Distributions to (11,297) shareholders from net investment income Share 93,120,162 transactions Net proceeds from sales of shares Reinvestmen 11,187 t of distributions Cost of (19,142,555) shares redeemed Redemption 176,002 fees NET INCREASE 74,164,796 (DECREASE) IN NET ASSETS RESULTING FROM SHARE TRANSACTIO NS TOTAL 75,260,647 INCREASE (DECREASE) IN NET ASSETS NET ASSETS Beginning of - period End of period $ 75,260,647 (including undistribute d net investment income of $563,811) OTHER INFORMATION Shares Sold 8,492,144 Issued in 1,110 reinvestment of distributions Redeemed (1,739,297) Net increase 6,753,957 (decrease) SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FINANCIAL HIGHLIGHTS NOVEMBER 1, 1995 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1996 (UNAUDITED) SELECTED $ 10.00 PER-SHARE DATA Net asset value, beginning of peiod Income from Investment Operations Net .17 F investment income Net realized .93 and unrealized gain (loss) Total from 1.10 investment operations Less (.01) Distributions From net investment income Redemption .05 fees added to paid in capital Net asset $ 11.14 value, end of period TOTAL RETURN B, 11.51% C RATIOS AND SUPPLEMENT AL DATA Net assets, $ 75,261 end of period (000 omitted) Ratio of 2.00% A, expenses to D average net assets Ratio of net 3.10% A investment income to average net assets Portfolio 96% A turnover rate Average $ .0066 commission rate E * ANNUALIZED * 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). * TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. * 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. * A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER. * NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. JAPAN SMALL COMPANIES PERFORMANCE: THE BOTTOM LINE There are several ways to evaluate a fund's historical performance. You can look at the total percentage change in value, the average annual percentage change, or the growth of a hypothetical $10,000 investment. Each performance figure includes changes in a fund's share price, plus reinvestment of any dividends (income) and capital gains (the profits the fund earns when it sells securities that have grown in value). The fund has a 3% sales charge. CUMULATIVE TOTAL RETURNS PERIOD ENDED PAST 6 APRIL 30, 1996 MONTHS * JAPAN SMALL COMPANIES 13.70% JAPAN SMALL COMPANIES (INCL. 3% SALES CHARGE) 10.29% Tokyo Stock Price Index 18.87% Japanese Funds Average 14.97% A LIFE OF FUND. CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms over a set period - in this case, six months (since the fund started on November 1, 1995). For example, if you invested $1,000 in a fund that had a 5% return over the past year, the value of your investment would be $1,050. You can compare the fund's returns to the performance of the Tokyo Stock Price Index - a broad measure of the Japanese stock market's performance, similar to the Standard & Poor's 500 Index in the U.S. To measure how the fund's performance stacked up against its peers, you can compare the fund's performance to the Japanese funds average, which reflects the performance of 14 funds with similar objectives - in this case, a very small peer group - - tracked by Lipper Analytical Services over the past six months. These benchmarks include reinvested dividends and capital gains, if any, and exclude the effects of sales charges. AVERAGE ANNUAL TOTAL RETURNS 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. In the fund's next report we'll report these numbers for the fund and the benchmarks. $10,000 OVER LIFE OF FUND The growth of a hypothetical $10,000 INVESTMENT in the fund will appear in the fund's next report. UNDERSTANDING PERFORMANCE Many markets around the globe offer the potential for significant growth over time; however, investing in foreign markets means assuming greater risks than investing in the United States. Factors like changes in a country's financial markets, its local political and economic climate, and the fluctuating value of its currency create these risks. For these reasons an international fund's performance may be more volatile than a fund that invests exclusively in the United States. Past performance is no guarantee of future results and you may have a gain or loss when you sell your shares. (checkmark) JAPAN SMALL COMPANIES FUND TALK: THE MANAGER'S OVERVIEW An interview with Simon Fraser, Portfolio Manager of Japan Small Companies Fund Q. JAPAN SMALL COMPANIES FUND STARTED ON NOVEMBER 1, 1995. WHY WAS IT CREATED? A. This fund was created for investors who want exposure to developing companies that are listed on the JASDAQ - the Japanese version of NASDAQ - and smaller companies that trade on the Tokyo Stock Exchange. Usually, when we think of investing in Japan, we think of enormous industrial companies, especially the well-known international companies that experienced phenomenal growth in the post-World War II era. While international trade flourished, the domestic economy remained remarkably underdeveloped. A highly regulated environment which encouraged saving and discouraged consumption led to unfulfilled consumer demand. That has begun to change. I believe that the opportunity for growth and investment in Japan is in the domestic economy and the small-to medium-size companies that serve it. More western goods are becoming available in Japan, and the old system of distribution and retailing has begun to change for the better. Due to price regulations in the past, the Japanese were forced to overpay for necessities. With deregulation, their money will be used differently, creating a new opportunity for entrepreneurs and investors. Q. HOW DID THE FUND PERFORM? A. Since its inception on November 1, 1995 until the end of the period on April 30, 1996, the fund returned 13.70%. During the same period, the Japanese funds average returned 14.97%, according to Lipper Analytical Services. The Tokyo Stock Price Index - a measure of the overall performance of the Japanese stock market - returned 18.87% during the same period. While they are the best available to us, neither of these comparisons are particularly accurate, since no existing index accurately measures performance of the kinds of stocks this fund owns. Q. WHAT DO YOU FIND ATTRACTIVE ABOUT SMALL COMPANIES IN JAPAN? A. Small companies in Japan that we are focusing on differ from larger industrials in several ways: they usually import rather than export, provide service rather than manufacture and are aimed at consumption rather than investment. Interestingly, the new breed of smaller Japanese stocks are not like the high-tech issues that dominate the over-the-counter market in the U.S. These stocks tend to be retailers, service-sector companies in areas such as retailing, financial services, software, and entertainment. Though small Japanese companies aren't heavily weighted toward technology, the fund does have exposure to technology stocks. Q. WHAT WAS THE INVESTING ENVIRONMENT LIKE FOR SMALL STOCKS DURING THE PERIOD? A. During the past month or two, the valuations of the small stocks were very attractive because they have underperformed for the past four years. Valuation - such as price-to-earnings and price-to-book ratios - of the small company stocks were still attractive at the end of the period. Q. CAN THESE COMPANIES MAINTAIN THEIR CURRENT GROWTH RATES? A. In addition to growing faster than the large companies, the small companies' growth is probably more sustainable. Much of the earnings growth in the large companies is a result of restructuring and cost-cutting that can't continue indefinitely. As deregulation continues, a climate of sustained growth is created as the production inefficiencies that were built into the system are corrected. The future of domestic growth seems bright, since Japan is still relatively underdeveloped in the use of personal computers, software, networks and cellular telephones, among other things. Q. WHAT KIND OF STOCKS DID YOU LOOK FOR DURING THE PERIOD? A. A key to the fund's success is the level of commitment Fidelity has made in terms of its resources. We are looking for undiscovered growth companies with attractive valuations. The maturing of the domestic economy of Japan has been accelerated by the difficult economy of the past five years. As consumers suffered through the recession, they learned to shop for quality at a better price. With a weak stock market, only the best companies were financed, and all companies have been forced to sharpen their managerial skills. Different sectors are maturing at different speeds. Retail chains are taking market share from the general department store and small corner stores. Royal Ltd. is an auto parts retailer that has been expanding rapidly. One of only two listed auto supply retailers in Japan, it provides services of all types to the car owner - from new tires, to exhaust systems and stereos. Q. CONSTRUCTION AND REAL ESTATE IS CURRENTLY THE FUND'S LARGEST SECTOR WEIGHTING. WHAT'S YOUR STRATEGY? A. With vacancy rates down, the real estate markets have stabilized in most of the major cities. Cesar Co. and Kansai Sekiwa Real Estate are stocks whose valuations appeared quite attractive as business prospects improved and prices finally began to increase after the past five years. Q. WHERE ELSE DID YOU FIND OPPORTUNITIES? A. Acom Co. Ltd. is a consumer financial services company. Banks in Japan don't offer overdraft protection or short-term consumer credit, but this innovative company provides financing that is similar to credit card financing in the U.S. Though the interest rates they charge consumers are extraordinarily high, there is a strong demand for such a service. Amway Japan Ltd. is an example of a company taking advantage of the changing distribution channels in Japan. With market liberalization of prices for consumer goods, this company has been innovative in responding to the need of Japanese consumers who are looking for value. Q. HOW RISKY IS IT TO INVEST IN JAPAN SMALL COMPANIES FUND? A. There's always risk involved in investing, especially in stocks of a foreign country in which currency exposure is always a concern. This fund primarily invests in smaller companies that tend to be more volatile than larger ones. However, bankruptcy risk is low because regulations to get listed on the exchanges are very stringent. Unlike companies in the U.S. that can trade over-the-counter with no sales or earnings, Japanese OTC stocks must be earning money and have a five-year track record of operation. Q. WHAT'S YOUR OUTLOOK FOR THE FUND, SIMON? A. I think the outlook is positive for several reasons. The Japanese economy, in general, is showing signs of recovery, yet because it is early, there is no concern about inflation just yet. I also believe that interest rates can stay fairly low, even with this level of economic growth, and corporate earnings should continue to improve. I think earnings will continue to grow faster for smaller companies, and that rapid growth is more sustainable than it is for the larger companies in the economy. The relative valuations of small companies versus larger companies are also attractive. FUND FACTS GOAL: long-term growth of capital by investing mainly in equity securities of Japanese issuers with small market capitalizations START DATE: November 1, 1995 TRADING SYMBOL: FJSCX SIZE: as of April 30, 1996, more than $149 million MANAGER: Simon Fraser, since November 1995; manager, Fidelity Pacific Basin Fund, 1993-May, 1996; also manages various funds for non-U.S. investors; joined Fidelity in 1981 (checkmark) SIMON FRASER ON GROWTH OPPORTUNITIES IN THE DOMESTIC ECONOMY OF JAPAN: "There are two compelling reasons for investing in the domestic economy of Japan. One reason I'll call the cyclical, or short term argument; the other I'll call the secular or longer-term argument. First the cyclical argument. "Japan is recovering from a five-year recession. There has been tremendous appreciation in the stock market since the lows of the summer of 1995. Large companies rebounded first, and small companies have rebounded in absolute terms but have not yet significantly outperformed. The small companies, especially, had attractive valuations since they'd underperformed for so long. Sectors such as real estate and construction are classic examples of cyclicals. They lose value during difficult economic times, and their valuations become very attractive when the economy picks up again. Same for retailers. They are badly hurt by a recession, but their margins begin to improve as the economy swings upward again. "The secular argument is even more compelling. The fact is that the economic, political and social forces of the country focused solely on export industries for the past 30-40 years, while the others were underdeveloped. My belief is that the liberalization of market forces in Japan's service sectors offer the most exciting opportunities for growth in that country today." 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. JAPAN SMALL COMPANIES INVESTMENT SUMMARY GEOGRAPHIC DIVERSIFICATION AS OF APRIL 30, 1996 United States 16.6% Row: 1, Col: 1, Value: 16.6 Row: 1, Col: 2, Value: 83.40000000000001 Japan 83.4% ASSET ALLOCATION % OF FUND'S INVESTMENTS Stocks 82.5 Bonds 0.9 Short-term investments 16.6 TOP TEN STOCKS % OF FUND'S INVESTMENTS Sony Music Entertainment Japan, Inc. 4.4 (Entertainment) NTT Data Communications System 4.4 (Computer Services & Software) Acom Co. Ltd. 3.0 (Credit & Other Finance) Japan Telecom Co. Ltd. 2.4 (Telephone Services) Amway Japan Ltd. 2.1 (Retail & Wholesale, Miscellaneous) Cesar Co. 1.9 (Real Estate) Katokichi Co. Ltd. 1.7 (Foods) Japan Associated Finance Co. 1.7 (Credit & Other Finance) New Japan Securities 1.6 (Securities Industry) Royal Ltd. 1.4 (Autos, Tires, & Accessories) TOP TEN MARKET SECTORS % OF FUND'S INVESTMENTS Construction & Real Estate 13.7 Technology 11.1 Durables 10.5 Finance 9.3 Retail & Wholesale 9.1 Media & Leisure 7.0 Industrial Machinery & Equipment 5.1 Basic Industries 4.6 Utilities 3.6 Transportation 2.6 JAPAN SMALL COMPANIES INVESTMENTS APRIL 30, 1996 (UNAUDITED) Showing Percentage of Total Value of Investment in Securities COMMON STOCKS - 82.5% SHARES VALUE (NOTE 1) AEROSPACE & DEFENSE - 2.2% AEROSPACE & DEFENSE - 0.7% Jamco Corp. 65,000 $ 1,050,830 SHIP BUILDING & REPAIR - 1.5% Namura Shipbuilding Co. Ltd. 166,000 1,002,425 Sasebo Heavy Industries Co. Ltd. 350,000 1,218,202 2,220,627 TOTAL AEROSPACE & DEFENSE 3,271,457 BASIC INDUSTRIES - 4.6% CHEMICALS & PLASTICS - 1.5% Nippon Zeon Co. Ltd. 133,000 844,886 Sakai Chemical Industry Co. Ltd. 105,000 768,865 Tenma Corp. 25,000 613,380 2,227,131 IRON & STEEL - 1.8% Bunka Shutter Co. Ltd. 153,000 1,163,996 Bunka Shutter Co. Ltd. (warrants) (a) 300 161,250 Chubu Steel Plate Co. Ltd. 63,000 427,769 NKK Corp. (a) 150,000 467,881 Toa Steel 77,000 443,745 2,664,641 METALS & MINING - 0.1% Kanamoto Co. Ltd. 10,000 153,107 PACKAGING & CONTAINERS - 0.4% Tomoku Co. Ltd. 80,000 523,418 PAPER & FOREST PRODUCTS - 0.8% Daishowa Paper Manufacturing Co. Ltd. (a) 25,000 230,612 Seven Industry Co. Ltd. 30,000 218,249 Tokushu Paper Manufacturing Co. Ltd. 47,000 554,229 Ube-Nitto Kasei Co. Ltd. 16,000 164,329 1,167,419 TOTAL BASIC INDUSTRIES 6,735,716 CONSTRUCTION & REAL ESTATE - 13.7% BUILDING MATERIALS - 3.5% Almetax Manufacturing Co. Ltd. 88,580 1,086,664 Almetax Manufacturing Co. Ltd. (warrants) (a) 1,500 373,644 Chofu Seisaku Co. Ltd. 71,000 1,843,279 Fujisash Co. Ltd. 16,300 192,211 Hibiya Engineering Ltd. (warrants) (a) 1,300 215,187 Kikusui Chemical Industries Co. Ltd. 28,000 335,505 Kondotec, Inc. 15,000 169,749 Oriental Construction Co. Ltd. 51,000 872,997 Shinko Kogyo Co. Ltd. 8,000 52,874 5,142,110 CONSTRUCTION - 2.6% Kitano Construction Corp. 13,000 98,283 Mitsui Home Co. Ltd. 37,000 615,758 Mitsui Wood Systems, Inc. 73,000 812,230 Nichiei Construction Co. Ltd. 30,000 379,440 Nissei Build Kogyo Co. Ltd. 67,000 841,044 Ohmoto Gumi Co. Ltd. 17,600 396,672 Tokyo Tatemono Co. Ltd. (a) 110,000 683,087 3,826,514 ENGINEERING - 1.1% Ataka Construction & Engineering Co. Ltd. 51,000 533,498 Kawasaki Setsubi Kogyo Co. Ltd. (a) 19,000 229,471 SHARES VALUE (NOTE 1) Japan Industrial Land Development Co. Ltd. 24,200 $ 853,806 Nippon Engineering Consultants Co. Ltd. 1,200 28,301 1,645,076 REAL ESTATE - 6.5% Cesar Co. 275,000 2,719,794 Chubu Sekiwa Real Estate Ltd. 22,000 364,034 Chubu Sekiwa Real Estate Ltd. (warrants) (a) 500 60,265 Heiwa Real Estate Co. Ltd. 230,000 1,935,714 Inui Tatemono Co. Ltd. 11,000 129,713 Kansai Sekiwa Real Estate Ltd. 94,400 1,651,809 Recruit Cosmos Co. Ltd. 118,000 1,122,153 Sekiwa Real Estate Ltd. 37,000 422,234 Toc Company Ltd. 38,000 437,259 Tohoku Misawa Homes Co. Ltd. 58,000 722,552 9,565,527 TOTAL CONSTRUCTION & REAL ESTATE 20,179,227 DURABLES - 10.5% AUTOS, TIRES, & ACCESSORIES - 3.9% FCC Co. Ltd. 39,600 1,468,689 Hirata Technical Co. Ltd. 24,000 417,669 Mitsuba Electric Manufacturing Co. Ltd. (warrants) (a) 700 258,738 NGK Spark Plug Co. Ltd. (warrants) (a) 500 428,125 Royal Ltd. 58,300 1,984,822 Toyoda Gosei Co. 75,000 634,777 Yorozu Corp. 24,500 468,309 5,661,129 CONSUMER DURABLES - 2.8% Aderans Co. Ltd. 75,000 1,783,082 Kuramoto Seisakusho Co. Ltd. 27,000 821,644 Maruwa Ceramic Co. Ltd. 21,700 1,434,216 4,038,942 CONSUMER ELECTRONICS - 0.7% Daiichi Corp. Ord. 40,000 1,008,036 TEXTILES & APPAREL - 3.1% Aoki International Co. Ltd. 29,000 703,248 Chiyoda Corp. 20,000 464,077 Descente Ltd. 123,000 897,161 Impact 21 Co. Ltd. 14,000 291,570 Jeans Mate Corp. 6,600 244,782 Maruko Co. Ltd. 9,000 801,103 Sotoh Co. Ltd. 10,000 139,794 Tokai Senko Kk (a) 129,000 1,069,735 4,611,470 TOTAL DURABLES 15,319,577 ENERGY - 0.5% OIL & GAS - 0.5% Daikyo, Inc. 101,000 753,022 FINANCE - 9.3% CREDIT & OTHER FINANCE - 4.8% Acom Co. Ltd. 117,000 4,394,941 Japan Associated Finance Co. 20,000 2,472,540 Kawasho Lease System Corp. 13,000 160,715 7,028,196 SECURITIES INDUSTRY - 4.5% Ace Koeki Co. Ltd. 36,000 701,821 Ichiyoshi Securities 69,000 505,254 Kankaku Securities (a) 225,000 1,084,827 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) FINANCE - CONTINUED SECURITIES INDUSTRY - CONTINUED Kokusai Securities Co. Ltd. 80,000 $ 1,293,329 New Japan Securities (a) 350,000 2,413,104 Wako Securities 58,000 533,917 6,532,252 TOTAL FINANCE 13,560,448 HEALTH - 0.9% DRUGS & PHARMACEUTICALS - 0.5% JCR Pharmaceuticals Co. Ltd. 24,000 616,233 Sanseido Co. Ltd. 11,000 138,082 754,315 MEDICAL EQUIPMENT & SUPPLIES - 0.4% Fukuda Denshi Co. Ltd. 12,000 342,352 Hogy Medical Co. 3,500 179,735 522,087 TOTAL HEALTH 1,276,402 INDUSTRIAL MACHINERY & EQUIPMENT - 5.1% ELECTRICAL EQUIPMENT - 0.5% Icom, Inc. 10,000 108,411 Shinko Electric Industries Co. Ltd. 18,000 633,351 741,762 INDUSTRIAL MACHINERY & EQUIPMENT - 4.6% Asahi Diamond Industrial Co. Ltd. 20,600 280,139 Fuji Oozx, Inc. 7,000 53,920 Kuroda Precision Industries Ltd. (a) 21,000 179,735 Kyoritsu Air Technology, Inc. 12,000 155,199 Nippon Thompson Co. Ltd. 30,000 296,705 Nitto Kohki Co. Ltd. 42,900 1,733,869 Shinko Pantec Co. Ltd. 30,000 278,161 Takuma Co. Ltd. 92,000 1,408,587 Tsubaki Nakashima Co. Ltd. 40,000 532,547 Tsubakimoto Chain Co. 60,000 421,663 Tokai Carbon Co. Ltd. 155,000 921,259 Union Tool Co. 19,000 480,624 6,742,408 TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 7,484,170 MEDIA & LEISURE - 7.0% ENTERTAINMENT - 4.4% Sony Music Entertainment Japan, Inc. 119,700 6,454,272 LEISURE DURABLES & TOYS - 0.3% Roland Corp. 20,000 361,371 PUBLISHING - 0.2% Takara Printing Co. Ltd. 24,000 342,352 RESTAURANTS - 2.1% Kentucky Fried Chicken Japan 46,000 962,389 Saint Marc Co. Ltd. 22,800 1,303,105 Yoshinoya D&C Co. Ltd. Ord. 54 765,156 3,030,650 TOTAL MEDIA & LEISURE 10,188,645 NONDURABLES - 2.0% FOODS - 2.0% Katokichi Co. Ltd. 100,000 2,482,050 Yonekyu Corp. 26,000 375,826 2,857,876 SHARES VALUE (NOTE 1) RETAIL & WHOLESALE - 9.1% APPAREL STORES - 0.2% Marutomi Group Co. Ltd. 14,000 $ 157,101 Marutomi Group Co. Ltd. (warrants) (a) 700 113,620 270,721 GENERAL MERCHANDISE STORES - 2.3% Hankyu Department Stores, Inc. 100,000 1,454,995 Hanshin Department Store Ltd. 61,000 504,684 Matsumotokiyoshi Co. Ltd. 43,800 1,395,369 3,355,048 GROCERY STORES - 1.1% U Store Co. Ltd. 5,000 66,568 York Benimaru Co. 40,400 1,613,618 1,680,186 RETAIL & WHOLESALE, MISCELLANEOUS - 5.5% Amway Japan Ltd. 60,000 3,075,460 Kahma Co. Ltd. 30,200 545,671 Juel Verite Ohkubo Co. Ltd. 34,000 319,452 Maruzen Co. Ltd. 83,000 1,491,798 Paris Miki, Inc. 17,600 741,458 Salomon & Taylor Made Co. Ltd. 69,000 1,017,070 Tachibana Shokai Ltd. (warrants) (a) 1,350 200,683 Tsutsumi Jewelry Co. Ltd. 13,300 662,755 8,054,347 TOTAL RETAIL & WHOLESALE 13,360,302 SERVICES - 1.2% Cats, Inc. 93,000 1,538,870 Ishikawajima Hanyoki Service Co. Ltd. 10,000 190,195 1,729,065 TECHNOLOGY - 10.2% COMMUNICATIONS EQUIPMENT - 1.9% Fujitsu Denso 30,000 878,703 Oi Electric Co. Ltd. 80,000 1,955,209 2,833,912 COMPUTER SERVICES & SOFTWARE - 4.4% NTT Data Communications System 185 6,439,066 COMPUTERS & OFFICE EQUIPMENT - 1.1% Kanematsu Electronics Ltd. 73,000 819,172 Nissho Electronics Corp. 40,000 844,468 1,663,640 ELECTRONIC INSTRUMENTS - 0.1% Shibaura Electronics Co. 5,500 135,990 ELECTRONICS - 2.3% Apic Yamada Corp. 15,000 465,028 Doshisha Co. Ltd. 9,000 272,170 Fujitsu Kiden Ltd. 41,000 584,851 Meiden Engineering Co. Ltd. 10,000 161,666 Mimasu Semiconductor Industries Co. Ltd. 60,000 1,483,524 Nichicon Corp. 20,000 330,940 3,298,179 PHOTOGRAPHIC EQUIPMENT - 0.4% Minolta Camera Co. Ltd. 95,000 578,194 TOTAL TECHNOLOGY 14,948,981 TRANSPORTATION - 2.6% RAILROADS - 0.4% Hankyu Corp. (warrants) (a) 450 244,688 Tobu Railway Co. Ltd. (warrants) (a) 900 410,625 655,313 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) TRANSPORTATION - CONTINUED SHIPPING - 2.2% Kawasaki Kisen Kaisha Ltd. (a) 500,000 $ 1,835,386 Navix Line Ltd. (a) 425,000 1,382,245 3,217,631 TOTAL TRANSPORTATION 3,872,944 UTILITIES - 3.6% ELECTRIC UTILITY - 1.2% Chubu Electric Power 70,000 1,764,063 TELEPHONE SERVICES - 2.4% Japan Telecom Co. Ltd. 169 3,535,733 TOTAL UTILITIES 5,299,796 TOTAL COMMON STOCKS (Cost $110,711,784) 120,837,628 CONVERTIBLE BONDS - 0.9% MOODY'S PRINCIPAL RATINGS AMOUNT (B) TECHNOLOGY - 0.9% COMPUTERS & OFFICE EQUIPMENT - 0.9% Softbank Corp. 0.5%, 3/29/02 (Cost $945,180) - JPY 100,000,000 1,302,839 REPURCHASE AGREEMENTS - 16.6% MATURITY AMOUNT Investments in repurchase agreements (U.S. Treasury obligations) in a joint trading account at 5.33%, dated 4/30/96 due 5/1/96 $ 24,275,594 24,272,000 TOTAL INVESTMENT IN SECURITIES - 100% (Cost $135,928,964) $ 146,412,467 CURRENCY ABBREVIATIONS JPY - Japanese yen LEGEND (a) Non-income producing (b) Principal amount is stated in United States dollars unless otherwise noted. OTHER INFORMATION Purchases and sales of securities, other than short-term securities, aggregated $127,625,485 and $16,370,911, respectively. INCOME TAX INFORMATION At April 30, 1996, the aggregate cost of investment securities for income tax purposes was $135,928,964. Net unrealized appreciation aggregated $10,483,503, of which $11,863,217 related to appreciated investment securities and $1,379,714 related to depreciated investment securities. JAPAN SMALL COMPANIES FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1996 (UNAUDITED) ASSETS Investment in $ 146,412,467 securities, at value (including repurchase agreements of $24,272,000) (cost $135,928,964 ) - See accompanyin g schedule Cash 151 Receivable for 1,193,390 investments sold Receivable for 6,278,559 fund shares sold Dividends 240,379 receivable Interest 391 receivable Prepaid 14,089 expenses TOTAL ASSETS 154,139,426 LIABILITIES Payable for $ 4,880,201 investments purchased Payable for 80,968 fund shares redeemed Accrued 74,518 management fee Other payables 53,114 and accrued expenses TOTAL 5,088,801 LIABILITIES NET ASSETS $ 149,050,625 Net Assets consist of: Paid in capital $ 138,124,069 Undistributed 39,292 net investment income Accumulated 402,073 undistributed net realized gain (loss) on investments and foreign currency transactions Net unrealized 10,485,191 appreciation (depreciation ) on investments and assets and liabilities in foreign currencies NET ASSETS, for $ 149,050,625 13,103,490 shares outstanding NET ASSET $11.37 VALUE and redemption price per share ($149,050,62 5 (divided by) 13,103,490 shares) Maximum $11.72 offering price per share (100/97.00 of $11.37) STATEMENT OF OPERATIONS NOVEMBER 1, 1995 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1996 (UNAUDITED) INVESTMENT $ 304,568 INCOME Dividends Interest 288,718 593,286 Less foreign (45,685 taxes ) withheld TOTAL 547,601 INCOME EXPENSES Management $ 282,205 fee Transfer agent 108,101 fees Accounting 31,500 fees and expenses Non-interested 81 trustees' compensatio n Custodian fees 36,020 and expenses Registration 35,889 fees Audit 14,576 Total 508,372 expenses before reductions Expense (63 508,309 reductions ) NET 39,292 INVESTMENT INCOME REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) on: Investment 402,390 securities Foreign (317 402,073 currency ) transactions Change in net unrealized appreciation (depreciation ) on: Investment 10,483,503 securities Assets and 1,688 10,485,191 liabilities in foreign currencies NET GAIN (LOSS) 10,887,264 NET INCREASE $ 10,926,556 (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS OTHER $ 505,853 INFORMATION Sales charges paid to FDC Expense $ 63 reductions Custodian interest credits $ 63 STATEMENT OF CHANGES IN NET ASSETS INCREASE NOVEMBER 1, 1995 (DECREASE) IN (COMMENCEMENT NET ASSETS OF OPERATIONS) TO APRIL 30, 1996 (UNAUDITED) Operations $ 39,292 Net investment income Net realized 402,073 gain (loss) Change in 10,485,191 net unrealized appreciation (depreciation ) NET INCREASE 10,926,556 (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS Share 158,978,256 transactions Net proceeds from sales of shares Cost of (21,002,037) shares redeemed Redemption 147,850 fees NET INCREASE 138,124,069 (DECREASE) IN NET ASSETS RESULTING FROM SHARE TRANSACTIO NS TOTAL 149,050,625 INCREASE (DECREASE) IN NET ASSETS NET ASSETS Beginning of - period End of period $ 149,050,625 (including undistribute d net investment income of $39,292) OTHER INFORMATION Shares Sold 15,129,915 Redeemed (2,026,425) Net increase 13,103,490 (decrease) SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FINANCIAL HIGHLIGHTS NOVEMBER 1, 1995 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1996 (UNAUDITED) SELECTED PER-SHARE DATA Net asset $ 10.00 value, beginning of period Income from Investment Operations Net .01 E investment income Net realized 1.34 and unrealized gain (loss) Total from 1.35 investment operations Redemption .02 fees added to paid in capital Net asset $ 11.37 value, end of period TOTAL RETURN B, 13.70% C RATIOS AND SUPPLEMENT AL DATA Net assets, $ 149,051 end of period (000 omitted) Ratio of 1.38% A expenses to average net assets Ratio of net .11% A investment income to average net assets Portfolio 51% A turnover rate Average $ .0576 commission rate D 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 A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER. E NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. NORDIC PERFORMANCE: THE BOTTOM LINE There are several ways to evaluate a fund's historical performance. You can look at the total percentage change in value, the average annual percentage change, or the growth of a hypothetical $10,000 investment. Each performance figure includes changes in a fund's share price, plus reinvestment of any dividends (income) and capital gains (the profits the fund earns when it sells securities that have grown in value). The fund has a 3% sales charge. If Fidelity had not reimbursed certain fund expenses during the period shown, the total returns would have been lower. CUMULATIVE TOTAL RETURNS PERIOD ENDED PAST 6 APRIL 30, 1996 MONTHS * NORDIC 8.00% NORDIC (INCL. 3% SALES CHARGE) 4.76% FT/S&P - Actuaries World Nordic Index 5.28% European Region Funds Average 9.69% F LIFE OF FUND. CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms over a set period - in this case, six months (since the fund started on November 1, 1995). For example, if you invested $1,000 in a fund that had a 5% return over the past year, the value of your investment would be $1,050. You can compare the fund's returns to the performance of the FT/S&P - Actuaries World Nordic Index - an unmanaged index of 90 stocks from Denmark, Finland, Norway and Sweden. The index is designed to provide coverage of approximately 85% of investable equity available in each market. To measure how the fund's performance stacked up against its peers, you can compare the fund's performance to the European region funds average, which reflects the performance of 46 funds with similar objectives tracked by Lipper Analytical Services over the past six months. These benchmarks include reinvested dividends and capital gains, if any, and exclude the effects of sales charges. AVERAGE ANNUAL TOTAL RETURNS 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. In the fund's next report we'll report these numbers for the fund and the benchmarks. $10,000 OVER LIFE OF FUND The growth of a hypothetical $10,000 INVESTMENT in the fund will appear in the fund's next report. UNDERSTANDING PERFORMANCE Many markets around the globe offer the potential for significant growth over time; however, investing in foreign markets means assuming greater risks than investing in the United States. Factors like changes in a country's financial markets, its local political and economic climate, and the fluctuating value of its currency create these risks. For these reasons an international fund's performance may be more volatile than a fund that invests exclusively in the United States. Past performance is no guarantee of future results and you may have a gain or loss when you sell your shares. (checkmark) NORDIC FUND TALK: THE MANAGER'S OVERVIEW An interview with Colin Stone, Portfolio Manager of Fidelity Nordic Fund Q. HOW DID THE FUND PERFORM, COLIN? A. The fund had a return of 8.00% from its inception on November 1, 1995, through the end of the period ending April 30, 1996. During the same period, the FT/S&P - Actuaries World Nordic Index returned 5.28%, and the European region funds average was 9.69%, according to Lipper Analytical Services. Q. WHAT WERE THE KEY FACTORS IN THE FUND'S PERFORMANCE? A. The fund's technology holdings - the largest sector of the fund as of the end of the period - were significant contributors to its success in its inaugural reporting period. Within this sector, several of the holdings had excellent performances indeed. Two Swedish software companies - Frontec and IBS - were standouts, along with Vaisala, a Finnish manufacturer of weather instrumentation equipment. By U.S. standards, these companies would be considered small caps. Of the fund's more than 18% position in technology on April 30, the largest sectors were computer services and software, and communications equipment, market segments that generally performed well during the period. Q. THE FUND'S INVESTMENTS IN FINANCIAL SERVICES COMPANIES WERE ALSO A RATHER SIGNIFICANT PORTION OF THE PORTFOLIO. A. Yes they were. Their performance over the past six months has been pretty volatile due to the movement in interest rates. While the overall performance of this sector has been mixed, the fund had a very positive contribution from Foreningsbanken, which is actually the smallest listed bank in Sweden and the last recovery play in that nation's banking industry. Its asset-quality problems are still in the process of being worked out and it's the cheapest stock in the sector as far as valuation. The fund's largest holding in Finland, insurance company Pohjola, also performed well during the period. Q. HEALTH CARE, THE FUND'S THIRD LARGEST SECTOR, SAW VERY STRONG GAINS IN 1995. DID THAT CARRY OVER TO THIS PERIOD? A. The fund's largest holding as of April 30, Swedish-based Astra, is a major health care company, and 12% of the fund was invested in this sector at the end of the period. However, I'm actually underweighted relative to my benchmark index. There's a couple of reasons why. First, while Astra represented more than 8% of the fund's holdings at the period's end, it represents more than 12% of my benchmark. Like many of my peers, however, I cannot have more than 10% of the fund invested in one company. Second, and more important, I think, health care stocks' strong outperformance last year may not be repeated during the coming year, and I believe pharmaceutical companies' earnings will be more in line with the market. I think the assets I've reserved by underweighting this sector compared to the benchmark can be redeployed to work better elsewhere. Q. WELL-KNOWN COMPANIES SUCH AS ERICSSON AND VOLVO ARE AMONG THE LARGEST HOLDINGS. IN ONE CASE, THE FUND IS UNDERWEIGHTED RELATIVE TO THE BENCHMARK; IN THE OTHER, IT'S SLIGHTLY OVERWEIGHTED. A. That's true. Ericsson is one of the world's leading companies in mobile telephony, both in the infrastructure of networks and also in handsets. It's in a market with strong growth anticipated for several years to come, but one that has suffered from intense price competition recently. The company represented 5.8% of the fund's holdings at the end of the period, even though it's about 10% of the fund's benchmark. Volvo has been an interesting story. It has a very high percentage of cash and short-term securities on its balance sheet, but the stock hasn't performed well of late. It's suffered due to high product development costs leading to future models, part of the company's transition from a manufacturer of safe, but dull family cars to a manufacturer of much more interesting and fun-to-drive, but still safe, cars. During the period, I felt that Volvo's investment could pay off and that pressure on its profits in the short-term were mostly discounted in the stock's price. The fund has a slight overweighting in the stock relative to the benchmark. Q. MOVING FROM HIGH TECH AND MANUFACTURING TO BASIC INDUSTRIES, YOU'VE INCREASED THE FUND'S HOLDINGS IN PAPER AND FOREST PRODUCTS COMPANIES RECENTLY. A. Yes, in fact I've taken this sector from about 3%-4% of our holdings to more than 7% at the end of the period. I felt that many of the stocks in this sector had gotten so cheap and the sentiment was so negative that the stocks had very little downside left and that even a modest amount of good news could drive the stocks up a fair way. Most of the fund's investments have been in two Swedish companies - Stora Kopparbergs, which is one of the fund's largest holdings, and Mo Och Domsjoe. Q. WHILE THE FUND HAS LIMITED EXPOSURE TO THE RETAIL SECTOR, ONE OF ITS LARGEST HOLDINGS - HENNES & MAURITZ - IS AN INTERESTING STORY. A. A clothing retailer similar to the Gap, this has been one of Europe's best retail growth stories, growing space at a double-digit pace with excellent return on investment on their stores. It started in Sweden, now has stores across much of the Continent, and is one of the few examples of a European retail format that works well outside of its home market. Q. WHAT WERE THE DISAPPOINTMENTS DURING THE FUND'S FIRST REPORTING PERIOD? A. While the domestic economies - meaning the non-export driven businesses - - have performed well in Denmark, Finland and Norway, Sweden - where the portfolio is most heavily invested - remains sluggish. As an example, TV 4, the largest commercial television station in the country, has suffered from less-than-expected advertising revenues, and it's been a poor stock over the past six months. Ericsson has also been a disappointment, with earnings depressed by strong competition in the mobile handset market and, because the company is such a big exporter, by the strengthening Swedish krona. Q. WHAT'S YOUR OUTLOOK FOR THE NEXT SEVERAL MONTHS? A. I'm concerned about bad news on corporate earnings from cyclical companies and would hope to position the fund accordingly. I think the interest rate environment will remain favorable, with the possibility of further short-term rate reductions. On average, I think the valuations of the average Nordic company are still lower than many other European companies, and that provides pretty good support. If the real drivers of the global economy - the United States, Japan, and continental Europe - experience growth together, I feel a lot of the industrial companies in the Nordic region can perform extremely well. FUND FACTS GOAL: long-term growth of capital by investing mainly in equity securities of issuers in Denmark, Finland, Norway and Sweden START DATE: November 1, 1995 TRADING SYMBOL: FNORF* SIZE: as of April 30, 1996, more than $7.9 million MANAGER: Colin Stone, since inception; also manager of Fidelity International, Limited's Fidelity Nordic Fund, Fidelity Iberia Fund and Fidelity New Europe Fund, analyst covering oil, oil service, leisure and engineering industries, 1987-1993; joined Fidelity in 1987 * TEMPORARY TRADING SYMBOL (checkmark) COLIN STONE ON INVESTING IN THE NORDIC COUNTRIES: "The environment for corporate profitability deteriorated during the fourth quarter of 1995 and we've seen pretty steady downward earnings revisions for European companies as a whole, with Scandinavian companies being no exception. The more cyclical areas of the market have underperformed considerably over the past six to 12 months. "Still, Scandinavia is a very fertile stock-picking region, and one where Fidelity is overweighted in many of our more diversified funds. I believe the Nordic region holds excellent potential for investors. There's a very strong equity culture here - as there has been historically - and companies' shareholder-friendliness is shown in a number of ways. Standards of corporate disclosure and management information are very high; there are quarterly reports with good balance sheet, cash flow and P&L data; and management just really tends to manage with the best interests of shareholders in mind. The region holds excellent potential for another intrinsic reason, I think. Nordic countries have had to be export-driven from a very early stage because, given their small domestic populations, their native markets are quickly saturated. "The economies of the Nordic countries tend to be built around manufacturing, particularly in Sweden, and a lot of basic materials, including forest products and metals. Oil is very important in Norway and Denmark. Manufacturing and engineering are significant components of the Finnish economy. However, I feel that these are all areas where earnings disappointments could continue to come, and I have positioned the fund with a greater weighting on technology and financials, although the other sectors I mentioned are still represented in the portfolio. "In general, European economies slowed sharply in the fourth quarter of 1995, partly due to sluggish end-demand and partly due to an inventory correction. Many industries had built up excess stock in 1995 because demand was surprisingly strong. As it turned out, much of the demand was just stock building by corporate end-users building up inventory in metals and paper, which are quite big in the Nordic region. We've seen a very savage inventory correction over the past six months, with a big swing from what we call "stock build" to "stock draw," or the drawing down of inventory. That's had a big impact on the apparent demand for commodities. As an example, we've seen the price of paper pulp collapse from about $1000 per ton to around $550 per ton. We've also seen the prices of steel, stainless steel and other commodities decline quite dramatically. "Some Nordic industries move in tandem with their European counterparts, and some do not. Scandinavian paper companies trade pretty much like paper companies elsewhere in Europe. The same is true for metals companies. But in other instances, there are some very real differences from country to country and sector to sector. For instance, in financial services, the different Nordic countries frequently are subject to domestic interest rates quite different from their neighbors." 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. NORDIC INVESTMENT SUMMARY GEOGRAPHIC DIVERSIFICATION AS OF APRIL 30, 1996 United States 8.3% Denmark 12.4% Row: 1, Col: 1, Value: 8.300000000000001 Row: 1, Col: 2, Value: 52.8 Row: 1, Col: 3, Value: 12.5 Row: 1, Col: 4, Value: 14.0 Row: 1, Col: 5, Value: 12.4 Finland 14.0% Norway 12.5% Sweden 52.8 % ASSET ALLOCATION % OF FUND'S INVESTMENTS Stocks 92.8 Short-term investments 7.2 TOP TEN STOCKS % OF FUND'S INVESTMENTS Astra AB Class A Free shares 8.3 (Sweden, Drugs & Pharmaceuticals) Ericsson (L.M.) Telephone Co. Class B 5.8 (Sweden, Communications Equipment) Volvo AB Class B 5.3 (Sweden, Autos, Tires, & Accessories) Stora Kopparbergs Bergslags AB Class A Free shares 3.5 (Sweden, Paper & Forest Products) Hennes & Mauritz AB Class B Free shares 3.1 (Sweden, Apparel Stores) SKF AB Ord. 2.9 (Sweden, Industrial Machinery & Equipment) Frontec AB Series B 2.8 (Sweden, Computer Services & Software) Skandia Foersaekrings AB 2.6 (Sweden, Insurance) Pohjola Class B 2.4 (Finland, Insurance) Foreningsbanken AB Class A Ord. 2.4 (Sweden, Banks) TOP TEN MARKET SECTORS % OF FUND'S INVESTMENTS Technology 18.3 Finance 17.5 Health 12.0 Durables 9.4 Basic Industries 7.2 Industrial Machinery & Equipment 6.5 Nondurables 4.8 Construction & Real Estate 4.1 Retail & Wholesale 3.1 Media & Leisure 2.8 NORDIC INVESTMENTS APRIL 30, 1996 (UNAUDITED) Showing Percentage of Total Value of Investment in Securities COMMON STOCKS - 92.8% SHARES VALUE (NOTE 1) DENMARK - 12.4% Crisplant Industries AS (a) 1,300 $ 91,379 Danisco AS 100 4,878 Den Danske Bank Group AS 2,639 172,089 Falck A/S 750 129,573 Fredgaard Radio A/S 1,500 131,606 International Service Systems AS, Series B 5,050 142,844 Incentive AS 1,078 59,524 Syd-Sonderjylland Holding 2,100 62,602 Unidanmark AS Class A 4,117 183,396 977,891 FINLAND - 14.0% Cultor OY, Series 1 3,902 165,252 Finlandia Interface Oy: Class A 800 21,485 Class A (RFD) 800 20,163 Fiskars OY, Series A 1,100 55,675 Hartwall Oy AB Class A 2,613 53,981 Huhtamaki Ord. 4,539 150,033 KCI (Konecranes International) (a) 400 7,272 Martela Oy Class A 1,200 24,543 Pohjola Class B 11,951 188,873 Repola OY 7,400 143,091 Spontel OY Class A 10,000 51,027 Talentum Oy Class B 1,700 15,453 TT Teito Oy 3,309 116,212 Vaisala Oy Class A 1,900 89,494 1,102,554 NORWAY - 12.5% Ark AS 4,333 76,127 Ekornes AS (Reg.) 5,000 67,690 Fokus Bank AS (a) 6,000 32,309 Hafslund Nycomed AS Class A 5,300 155,597 Nera AS 4,420 160,689 NCL Holdings AS 10,900 26,860 SE (System Etikettering) AS 4,269 66,885 Saga Petroleum AS Class B 3,380 45,759 Sparebanken Midt-Norge 2,900 67,934 Sparebanken Norway primary shares certificates 3,717 90,465 Steen & Stroem Invest AS 7,435 117,620 Tomra Systems AS 8,108 75,233 983,168 SWEDEN - 52.8% ASG AB Class B Free shares Ord. 4,245 75,619 Allgon AB Class B Free shares 5,700 86,853 Astra AB Class A Free shares 14,724 653,552 Autoliv AB 2,600 141,626 Bergman & Beving AB Class B Free shares 1,344 37,594 Concordia Maritime AB Class B Free shares 37,540 83,452 Ericsson (L.M.) Telephone Co. Class B 22,486 455,179 Euroc AB, Series A 3,339 95,856 Foreningsbanken AB Class A Ord. 68,900 185,625 Frontec AB (a): Series B 4,824 216,608 Series B (rights) 4,824 16,760 Hennes & Mauritz AB Class B Free shares 3,525 242,869 IBS (International Business Systems) AB Class B Free shares 4,100 97,784 SHARES VALUE (NOTE 1) Iro AB 7,067 $ 67,626 Mo Och Domsjoe AB Class B 2,800 148,810 NCC AB Class B Free shares 11,000 112,550 Nordictel Holding AB 900 12,057 Pricer AB Class B 1,800 33,920 SKF AB Ord. 9,974 232,003 Scania AB (a): Class A 300 8,303 Class B 300 8,281 Skandia Foersaekrings AB 9,010 205,600 Stora Kopparbergs Bergslags AB Class A Free shares 20,200 272,107 Svedala Industri Free shares 4,120 147,391 Svenska Handelsbanken 2,187 44,754 TV 4 AB Class A (a) 2,725 50,347 Volvo AB Class B 18,328 419,578 4,152,704 UNITED STATES OF AMERICA - 1.1% Pharmacia & Upjohn, Inc. 846 32,360 Pharmacia & Upjohn, Inc. Unit 1,490 56,594 88,954 TOTAL COMMON STOCKS (Cost $6,960,134) 7,305,271 REPURCHASE AGREEMENTS - 7.2% MATURITY AMOUNT Investments in repurchase agreements (U.S. Treasury obligations) in a joint trading account at 5.33%, dated 4/30/96 due 5/1/96 $ 568,084 568,000 TOTAL INVESTMENT IN SECURITIES - 100% (Cost $7,528,134) $ 7,873,271 LEGEND (a) Non-income producing OTHER INFORMATION Purchases and sales of securities, other than short-term securities, aggregated $8,507,575 and $1,553,364, respectively. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of FMR. The commissions paid to these affiliated firms were $826 for the period. INCOME TAX INFORMATION At April 30, 1996, the aggregate cost of investment securities for income tax purposes was $7,528,134. Net unrealized appreciation aggregated $345,137, of which $561,407 related to appreciated investment securities and $216,270 related to depreciated investment securities. MARKET SECTOR DIVERSIFICATION As a Percentage of Total Value of Investment in Securities Basic Industries 7.2% Construction & Real Estate 4.1 Durables 9.4 Energy 0.6 Finance 17.5 Health 12.0 Holding Companies 0.7 Industrial Machinery & Equipment 6.5 Media & Leisure 2.8 Nondurables 4.8 Repurchase Agreements 7.2 Retail & Wholesale 3.1 Services 1.6 Technology 18.3 Transportation 2.0 Utilities 2.2 100.0% NORDIC FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1996 (UNAUDITED) ASSETS Investment in $ 7,873,271 securities, at value (including repurchase agreements of $568,000) (cost $7,528,134) - - See accompanyin g schedule Cash 674 Receivable for 59,503 fund shares sold Dividends 50,116 receivable Redemption 204 fees receivable Prepaid 14,089 expenses Receivable 6,820 from investment adviser for expense reductions TOTAL ASSETS 8,004,677 LIABILITIES Payable for $ 35,583 investments purchased Payable for 30,678 fund shares redeemed Other payables 30,776 and accrued expenses TOTAL 97,037 LIABILITIES NET ASSETS $ 7,907,640 Net Assets consist of: Paid in capital $ 7,492,438 Undistributed 64,639 net investment income Accumulated 5,324 undistributed net realized gain (loss) on investments and foreign currency transactions Net unrealized 345,239 appreciation (depreciation ) on investments and assets and liabilities in foreign currencies NET ASSETS, for $ 7,907,640 732,451 shares outstanding NET ASSET $10.80 VALUE and redemption price per share ($7,907,640 (divided by) 732,451 shares) Maximum $11.13 offering price per share (100/97.00 of $10.80) STATEMENT OF OPERATIONS NOVEMBER 1, 1995 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1996 (UNAUDITED) INVESTMENT $ 118,648 INCOME Dividends Interest 9,115 127,763 Less foreign (17,781 taxes ) withheld TOTAL 109,982 INCOME EXPENSES Management $ 17,436 fee Transfer agent 8,067 fees Accounting 27,322 fees and expenses Non-interested 6 trustees' compensatio n Custodian fees 52,501 and expenses Registration 20,297 fees Audit 14,954 Total 140,583 expenses before reductions Expense (95,240 45,343 reductions ) NET 64,639 INVESTMENT INCOME REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) on: Investment 5,923 securities Foreign (599 5,324 currency ) transactions Change in net unrealized appreciation (depreciation ) on: Investment 345,137 securities Assets and 102 345,239 liabilities in foreign currencies NET GAIN (LOSS) 350,563 NET INCREASE $ 415,202 (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS OTHER $ 39,101 INFORMATION Sales charges paid to FDC Expense $ 42 reductions Custodian interest credits FMR 95,198 reimburseme nt $ 95,240 STATEMENT OF CHANGES IN NET ASSETS INCREASE NOVEMBER 1, 1995 (DECREASE) IN (COMMENCEMENT NET ASSETS OF OPERATIONS) TO APRIL 30, 1996 (UNAUDITED) Operations $ 64,639 Net investment income Net realized 5,324 gain (loss) Change in 345,239 net unrealized appreciation (depreciation ) NET INCREASE 415,202 (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS Share 8,506,455 transactions Net proceeds from sales of shares Cost of (1,024,506) shares redeemed Redemption 10,489 fees NET INCREASE 7,492,438 (DECREASE) IN NET ASSETS RESULTING FROM SHARE TRANSACTIO NS TOTAL 7,907,640 INCREASE (DECREASE) IN NET ASSETS NET ASSETS Beginning of - period End of period $ 7,907,640 (including undistribute d net investment income of $64,639) OTHER INFORMATION Shares Sold 830,697 Redeemed (98,246) Net increase 732,451 (decrease) SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FINANCIAL HIGHLIGHTS NOVEMBER 1, 1995 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1996 (UNAUDITED) SELECTED PER-SHARE DATA Net asset $ 10.00 value, beginning of period Income from Investment Operations Net .09 investment income Net realized .70 and unrealized gain (loss) Total from .79 investment operations Redemption .01 fees added to paid in capital Net asset $ 10.80 value, end of period TOTAL RETURN B, 8.00% C RATIOS AND SUPPLEMENT AL DATA Net assets, $ 7,908 end of period (000 omitted) Ratio of 2.00% A, expenses to D average net assets Ratio of net 2.85% A investment income to average net assets Portfolio 75% A turnover rate Average $ .0514 commission rate E 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 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. E A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER. UNITED KINGDOM PERFORMANCE: THE BOTTOM LINE There are several ways to evaluate a fund's historical performance. You can look at the total percentage change in value, the average annual percentage change, or the growth of a hypothetical $10,000 investment. Each performance figure includes changes in a fund's share price, plus reinvestment of any dividends (income) and capital gains (the profits the fund earns when it sells stocks that have grown in value). The fund has a 3% sales charge. If Fidelity had not reimbused certain fund expenses during the period shown, the total returns would have been lower. CUMULATIVE TOTAL RETURNS PERIOD ENDED PAST 6 APRIL 30, 1996 MONTHS * UNITED KINGDOM 7.33% UNITED KINGDOM (INCL. 3% SALES CHARGE) 4.11% FT-SE - Actuaries All Shares Index 7.59% European Region Funds Average 9.69% B LIFE OF FUND. CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms over a set period - in this case, six months (since the fund started on November 1, 1995). For example, if you invested $1,000 in a fund that had a 5% return over the past year, the value of your investment would be $1,050. You can compare the fund's returns to the performance of the FT-SE - Actuaries All Shares Index - an unmanaged capitalization weighted, broad-based index that includes more than 900 U.K. domiciled stocks. The index covers more than 90% of the total capitalization of the U.K. market. To measure how the fund's performance stacked up against its peers, you can compare the fund's performance to the European region funds average, which reflects the performance of 46 funds with similar objectives tracked by Lipper Analytical Services over the past six months. These benchmarks include reinvested dividends and capital gains, if any, and exclude the effects of sales charges. AVERAGE ANNUAL TOTAL RETURNS 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. In the fund's next report we'll report these numbers for the fund and the benchmarks. $10,000 OVER LIFE OF FUND The growth of a hypothetical $10,000 INVESTMENT in the fund will appear in the fund's next report. UNDERSTANDING PERFORMANCE Many markets around the globe offer the potential for significant growth over time; however, investing in foreign markets means assuming greater risks than investing in the United States. Factors like changes in a country's financial markets, its local political and economic climate, and the fluctuating value of its currency create these risks. For these reasons an international fund's performance may be more volatile than a fund that invests exclusively in the United States. Past performance is no guarantee of future results and you may have a gain or loss when you sell your shares. (checkmark) UNITED KINGDOM FUND TALK: THE MANAGER'S OVERVIEW An interview with Samuel Morse, Portfolio Manager of Fidelity United Kingdom Fund Q. SAM, HOW HAS THE FUND PERFORMED? A. For the period ended April 30, 1996, the fund's total return was 7.33%, while its benchmark index, the FT-SE-Actuaries All Shares Index, returned 7.59%. The total return for the European region funds average was 9.69%, according to Lipper Analytical Services. Q. WHAT HAS THE INVESTMENT ENVIRONMENT BEEN LIKE IN THE U.K. RECENTLY? A. Well, I think the U.K. is further along in its economic recovery cycle than most of Europe at this point. The most important implication of this is that the likelihood of additional interest rate declines is low; in fact, most investors expect that rates will rise before they'll fall again. That, coupled with general anxiety over the prospects for the more pro-business Conservative Party in the upcoming general election, has depressed the stock market somewhat in the last quarter. There also have been a few lesser issues, such as currency weakness and, yes, even some fallout over the "mad cow disease" situation, that have contributed to the market's performance. Q. THE LATTER PART OF THE PERIOD SEEMED TO BE DOMINATED BY QUITE A BIT OF MERGER AND ACQUISITION ACTIVITY. A. That's true. To back up a bit, the market was fairly strong overall in the last quarter of 1995. Financial companies in particular did well, helped along by the expectation that interest rates would continue to fall. Even as conditions changed, the large-cap sectors that had performed well started to weaken and some of the smaller-cap areas came on stronger. Mergers such as the one between Royal Insurance Holdings and Sun Alliance - two of the largest insurers in Britain - became an important theme. So in effect, what you had was two distinct sets of market conditions and results over the period. Q. LET'S TALK ABOUT THE WAY YOU'VE STRUCTURED THE PORTFOLIO. DO YOU HAVE AN OVERALL SECTOR STRATEGY? A. Not especially. My emphasis in picking stocks centers around dividend growth - that is, finding companies that are growing their dividends over time. But there are three sector themes that have emerged in the portfolio. The first is the Lloyd's of London insurance market. A variety of companies that do business with Lloyd's in one form or another has been affected by the massive, problematic claims filed against Lloyd's over the past several years. Now, the insurance market has gotten together to separate the problem claims from Lloyd's otherwise-viable business. A favorable settlement of the issue will be key to the entire insurance market, including the fund's holdings in insurance broker Lloyd Thompson and managing agent Ockham Holdings. The second area is energy stocks. After facing declining real prices in oil for some time, oil companies have effectively cut costs, reduced debt and focused on improving their profit margins. As a result, I've overweighted the fund in the sector with such stocks as Shell Transport and British Petroleum, which were both among the top 10 stocks in the portfolio at the the end of period. Q. WHAT'S THE THIRD SECTOR THEME YOU'RE PURSUING? A. That would be media stocks. I view media as one of the strongest growth sectors in the U.K. I'm especially favorable toward Reuters, another of my top 10 holdings at the period's end. Reuters has a solid balance sheet and cash flow, and I think its new open-system financial information database will prove quite successful in the marketplace. Q. ARE THERE ANY STOCKS THAT TURNED OUT TO BE PARTICULARLY DISAPPOINTING? A. Not very many. But one of the results of the recent mergers in the financial sector has been the fallout for some of the companies that serve the sector. For example, I owned stock in a company called De La Rue that prints bank notes and produces machinery for counting cash. As a result of mergers, the spending plans of several banks were put on hold, which affected its orders and hurt the stock price. Also, the utilities regulators have been somewhat tough this period, which hurt the performance of British Telecom in particular, one of the fund's largest positions. Q. HOW DO YOU SEE THE NEXT SEVERAL MONTHS? A. Although I don't try to time the market, I did have some thoughts at the beginning of the year as to where I thought the British market might be headed. I felt that stock prices could follow a "head and shoulders" pattern, where stocks would perform well in the first six months, then turn downward over the next period and end little changed overall. I think that scenario is still fairly intact. The stocks that have led the market over the past few months have been in the smaller-cap area. There seems to be some speculative buying on the part of investors in some of the technology-related sectors, where the stock prices of many companies with little to show in the way of earnings have been driven up. In this kind of environment, I plan to stay fully invested, but I may reduce the fund's exposure to certain small-cap stocks as they reach new highs and maintain the fund's core weighting in some of the bigger, brand-name stocks in the British market. FUND FACTS GOAL: long-term growth of capital by investing mainly in equity securities of British issuers START DATE: November 1, 1995 TRADING SYMBOL: FUTYF* SIZE: as of April 30, 1996, more than $2 million PORTFOLIO MANAGER: Samuel Morse, since 1995; joined Fidelity in 1990 * TEMPORARY TRADING SYMBOL (checkmark) SAMUEL MORSE ON HIS INVESTMENT STYLE: "My investment style is to concentrate on companies with good prospects for dividend growth. I'm not as focused on earnings as some managers; I consistently value companies based on how much I'm receiving in dividend yield versus how quickly they're growing their dividends. Basically, I look for five criteria. The first is positive fundamentals overall. The second is sufficient dividend cover - that is, cash flow per year divided by dividends paid per year. That helps to ensure that even in tough times the company can continue to grow its dividend. Third, I like to see a strong balance sheet. There, my evaluation can vary from sector to sector. For example, in looking at a utility that has stable revenues, I feel it can afford to take on more debt than an emerging growth company can. Next, I look for businesses that generate solid cash flow - too often companies with growing earnings aren't able to generate enough cash to grow their dividends, too. Finally, I try to project the growth rate of dividends I can expect from a stock over, say, a three- to five-year period, and make sure that the stock's valuation can continue to look attractive on the basis of its dividend yield. The net result is a lot of the solid, steadily-growing names you see in the portfolio, rather than turnaround or recovery situations that don't meet these criteria." 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. UNITED KINGDOM INVESTMENT SUMMARY GEOGRAPHIC DIVERSIFICATION AS OF APRIL 30, 1996 Other 3.3% Row: 1, Col: 1, Value: 96.7 Row: 1, Col: 2, Value: 3.3 United Kingdom 96.7% ASSET ALLOCATION % OF FUND'S INVESTMENTS Stocks 100.0 TOP TEN STOCKS % OF FUND'S INVESTMENTS British Petroleum PLC Ord. 4.5 (Oil & Gas) British Telecommunications PLC Ord. 4.2 (Telephone Services) Shell Transport & Trading PLC 3.4 (Holding Companies) Reuters Holdings PLC Ord. 3.1 (Computer Services & Software) SmithKline Beecham PLC Ord. 2.8 (Drugs & Pharmaceuticals) Unilever PLC Ord. 2.8 (Household products) Boots Co. PLC (The) 2.8 (Retail & Wholesale, Miscellaneous) BBA Group PLC 2.4 (Autos, Tires & Accessories) BTR PLC Ord. 2.1 (Holding Companies ) Barclays PLC Ord. 2.1 (Banks ) TOP TEN MARKET SECTORS % OF FUND'S INVESTMENTS Finance 16.0 Utilities 14.5 Nondurables 9.2 Retail & Wholesale 8.3 Media & Leisure 6.9 Constuction & Real Estate 6.3 Holding Companies 5.6 Technology 5.4 Energy 4.5 Health 4.3 UNITED KINGDOM INVESTMENTS APRIL 30, 1996 (UNAUDITED) Showing Percentage of Total Value of Investment in Securities COMMON STOCKS - 100% SHARES VALUE (NOTE 1) AEROSPACE & DEFENSE - 0.9% British Aerospace PLC 1,509 $ 19,800 BASIC INDUSTRIES - 3.9% CHEMICALS & PLASTICS - 1.5% Albright & Wilson PLC 5,800 15,296 BOC Group PLC 1,400 19,477 34,773 METALS & MINING - 2.4% Cookson Group PLC 6,300 30,007 Johnson Matthey PLC 2,500 22,892 52,899 TOTAL BASIC INDUSTRIES 87,672 CONGLOMERATES - 1.3% Tomkins PLC Ord. 7,168 29,604 CONSTRUCTION & REAL ESTATE - 6.3% BUILDING MATERIALS - 3.2% Baynes (Charles) PLC 8,000 16,761 CRH PLC 3,963 35,602 Polypipe PLC 6,400 18,522 70,885 CONSTRUCTION - 3.1% Beazer Homes Group PLC 6,900 21,633 Persimmon PLC Ord. 6,200 22,055 Taylor Woodrow PLC 9,600 25,178 68,866 TOTAL CONSTRUCTION & REAL ESTATE 139,751 DURABLES - 4.0% AUTOS, TIRES, & ACCESSORIES - 3.2% BBA Group PLC 10,130 53,060 Lex Service PLC Ord. 3,400 18,706 71,766 TEXTILES & APPAREL - 0.8% Tie Rack PLC 6,800 16,604 TOTAL DURABLES 88,370 ENERGY - 4.5% OIL & GAS - 4.5% British Petroleum PLC Ord. 10,957 99,011 FINANCE - 16.0% BANKS - 6.8% Anglo-Irish Bank Corp. PLC 17,325 16,713 Barclays PLC Ord. 4,180 46,435 Lloyds TSB Group PLC 9,246 44,388 National Westminster Bank PLC Ord. 4,700 43,391 150,927 CREDIT & OTHER FINANCE - 1.6% Perpetual PLC 1,000 36,477 INSURANCE - 7.6% Hogg Robinson Group 5,400 20,511 Lloyd Thompson Group PLC 7,600 19,360 London Insurance Market Investment Trust PLC 18,200 34,291 Ockham Holdings PLC 22,100 18,321 SHARES VALUE (NOTE 1) Prudential Corp. PLC 6,500 $ 44,823 Royal Insurance Holdings PLC 5,841 31,959 169,265 TOTAL FINANCE 356,669 HEALTH - 4.3% DRUGS & PHARMACEUTICALS - 2.8% SmithKline Beecham PLC Ord. 5,900 62,696 MEDICAL FACILITIES MANAGEMENT - 1.5% Takare PLC Ord. 8,100 18,314 Westminster Health Care Holdings PLC 3,300 15,420 33,734 TOTAL HEALTH 96,430 HOLDING COMPANIES - 5.6% BTR PLC Ord. 9,900 47,751 Shell Transport & Trading PLC 5,800 76,627 124,378 INDUSTRIAL MACHINERY & EQUIPMENT - 1.7% ELECTRICAL EQUIPMENT - 1.7% Premier Farnell PLC 3,300 36,609 MEDIA & LEISURE - 6.9% BROADCASTING - 2.7% Capital Radio PLC 2,200 22,748 GWR Group PLC 6,500 20,869 Yorkshire TV Holdings PLC 1,000 15,902 59,519 ENTERTAINMENT - 1.7% Capital Corp. PLC 4,700 15,727 London Clubs International PLC 2,600 21,398 37,125 PUBLISHING - 1.0% Mirror Group Newspaper PLC 6,300 21,651 RESTAURANTS - 1.5% Compass Group PLC Ord. 4,200 34,629 TOTAL MEDIA & LEISURE 152,924 NONDURABLES - 9.2% BEVERAGES - 4.2% Bass PLC Ord. 3,800 44,877 Bulmer (HP) Holdings PLC 1,725 16,017 Cadbury-Schweppes PLC Ord. 4,175 32,409 93,303 FOODS - 2.2% Christian Salvesen PLC Ord. 4,300 17,240 Grand Metropolitan PLC 4,800 31,617 48,857 HOUSEHOLD PRODUCTS - 2.8% Unilever PLC Ord. 3,400 62,318 TOTAL NONDURABLES 204,478 RETAIL & WHOLESALE - 8.3% GROCERY STORES - 3.6% Argyll Group PLC Ord. 3,432 17,175 Iceland Group PLC 13,900 31,846 Tesco PLC Ord. 7,500 31,710 80,731 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) RETAIL & WHOLESALE - CONTINUED RETAIL & WHOLESALE, MISCELLANEOUS - 4.7% Boots Co. PLC (The) 6,500 $ 62,067 Goldsmiths Group PLC 5,500 24,373 Wickes PLC 8,800 17,310 103,750 TOTAL RETAIL & WHOLESALE 184,481 SERVICES - 4.3% LEASING & RENTAL - 2.6% National Parking Corp. Ltd. 2,400 15,917 Thorn EMI PLC Ord. 1,510 41,936 57,853 SERVICES - 1.7% Hays PLC 3,000 19,399 Healthcall Group PLC 8,500 18,449 37,848 TOTAL SERVICES 95,701 TECHNOLOGY - 5.4% COMPUTER SERVICES & SOFTWARE - 3.1% Reuters Holdings PLC Ord. 6,000 68,009 ELECTRONIC INSTRUMENTS - 0.8% Sanderson Electronics PLC 8,000 18,389 ELECTRONICS - 1.5% Electrocomponents PLC 5,600 33,637 TOTAL TECHNOLOGY 120,035 TRANSPORTATION - 2.9% SHIPPING - 2.1% Associated British Ports PLC Ord. 10,100 45,671 TRUCKING & FREIGHT - 0.8% Ocean Group PLC 2,800 18,570 TOTAL TRANSPORTATION 64,241 UTILITIES - 14.5% CELLULAR - 4.3% International Cabletel, Inc. (a) 700 20,475 Securicor Group PLC Class A (non-vtg.) 2,400 44,224 Vodafone Group PLC 7,729 30,931 95,630 ELECTRIC UTILITY - 3.1% East Midland Electricity PLC 1,600 15,109 National Grid Co. PLC (a) 11,880 36,619 Northern Ireland Electric PLC 2,400 16,279 68,007 TELEPHONE SERVICES - 4.1% British Telecommunications PLC Ord. 16,800 92,301 WATER - 3.0% Hyder PLC 3,100 34,344 Southern Water PLC Ord. 2,833 32,517 66,861 TOTAL UTILITIES 322,799 TOTAL INVESTMENT IN SECURITIES - 100% (Cost $2,095,745) 2,222,953 LEGEND (b) Non-income producing OTHER INFORMATION Purchases and sales of securities, other than short-term securities, aggregated $2,322,549 and $229,098, respectively. INCOME TAX INFORMATION At April 30, 1996, the aggregate cost of investment securities for income tax purposes was $2,095,745. Net unrealized appreciation aggregated $127,208, of which $180,062 related to appreciated investment securities and $52,854 related to depreciated investment securities. UNITED KINGDOM FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1996 (UNAUDITED) ASSETS Investment in $ 2,222,953 securities, at value (cost $2,095,745) - - See accompanyin g schedule Cash 22,121 Receivable for 20,742 investments sold Receivable for 4,180 fund shares sold Dividends 14,671 receivable Prepaid 14,089 expenses Receivable 11,978 from investment adviser for expense reductions TOTAL ASSETS 2,310,734 LIABILITIES Payable for $ 87,160 investments purchased Payable for 4,556 fund shares redeemed Other payables 20,341 and accrued expenses TOTAL 112,057 LIABILITIES NET ASSETS $ 2,198,677 Net Assets consist of: Paid in capital $ 2,057,013 Undistributed 12,652 net investment income Accumulated 1,987 undistributed net realized gain (loss) on investments and foreign currency transactions Net unrealized 127,025 appreciation (depreciation ) on investments and assets and liabilities in foreign currencies NET ASSETS, for $ 2,198,677 205,634 shares outstanding NET ASSET $10.69 VALUE and redemption price per share ($2,198,677 (divided by) 205,634 shares) Maximum $11.02 offering price per share (100/97.00 of $10.69) STATEMENT OF OPERATIONS NOVEMBER 1, 1995 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1996 (UNAUDITED) INVESTMENT $ 38,449 INCOME Dividends Interest 2,015 40,464 Less foreign (4,241 taxes ) withheld TOTAL 36,223 INCOME EXPENSES Management $ 6,584 fee Transfer agent 2,274 fees Accounting 27,321 fees and expenses Non-interested 2 trustees' compensatio n Custodian fees 19,547 and expenses Registration 20,294 fees Audit 14,479 Total 90,501 expenses before reductions Expense (73,372 17,129 reductions ) NET 19,094 INVESTMENT INCOME REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) on: Investment 2,294 securities Foreign (307 1,987 currency ) transactions Change in net unrealized appreciation (depreciation ) on: Investment 127,208 securities Assets and (183 127,025 liabilities in ) foreign currencies NET GAIN (LOSS) 129,012 NET INCREASE $ 148,106 (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS OTHER $ 10,590 INFORMATION Sales charges paid to FDC Expense $ 73,372 reductions FMR reimburseme nt STATEMENT OF CHANGES IN NET ASSETS INCREASE NOVEMBER 1, 1995 (DECREASE) IN (COMMENCEMENT NET ASSETS OF OPERATIONS) TO APRIL 30, 1996 (UNAUDITED) Operations $ 19,094 Net investment income Net realized 1,987 gain (loss) Change in 127,025 net unrealized appreciation (depreciation ) NET INCREASE 148,106 (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS Distributions to (6,442) shareholders from net investment income Share 2,206,238 transactions Net proceeds from sales of shares Reinvestmen 6,442 t of distributions Cost of (156,096) shares redeemed Redemption 429 fees NET INCREASE 2,057,013 (DECREASE) IN NET ASSETS RESULTING FROM SHARE TRANSACTIO NS TOTAL 2,198,677 INCREASE (DECREASE) IN NET ASSETS NET ASSETS Beginning of - period End of period $ 2,198,677 (including undistribute d net investment income of $12,652) OTHER INFORMATION Shares Sold 220,119 Issued in 651 reinvestment of distributions Redeemed (15,136) Net increase 205,634 (decrease)
SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FINANCIAL HIGHLIGHTS NOVEMBER 1, 1995 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1996 (UNAUDITED) SELECTED PER-SHARE DATA Net asset $ 10.00 value, beginning of period Income from Investment Operations Net .10 investment income Net realized .63 and unrealized gain (loss) Total from .73 investment operations Less (.04) Distributions From net investment income Redemption - fees added to paid in capital Net asset $ 10.69 value, end of period TOTAL RETURN B, 7.33% C RATIOS AND SUPPLEMENT AL DATA Net assets, $ 2,199 end of period (000 omitted) Ratio of 2.00% A, expenses to D average net assets Ratio of net 2.23% A investment income to average net assets Portfolio 30% A turnover rate Average $ .0082 commission rate E 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 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. E A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER. NOTES TO FINANCIAL STATEMENTS For the period ended April 30, 1996 (Unaudited) 1. SIGNIFICANT ACCOUNTING POLICIES. Fidelity France Fund, Fidelity Germany Fund, Fidelity Hong Kong and China Fund, Fidelity Japan Small Companies Fund, Fidelity Nordic Fund and Fidelity United Kingdom Fund (the funds) are funds of Fidelity Investment Trust (the trust). The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Each fund is authorized to issue an unlimited number of shares. 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: 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. Securities, including restricted securities, for which quotations are not readily available are valued primarily using dealer-supplied valuations or at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Short-term securities maturing within sixty days of their purchase date are valued at amortized cost or original cost plus accrued interest, both of which approximate current value. FOREIGN CURRENCY TRANSLATION. The accounting records of the funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the prevailing rates of exchange at period end. Purchases and sales of securities, income receipts, and expense payments are translated into U.S. dollars at the prevailing exchange rate on the respective dates of the transactions. Net realized gains and losses on foreign currency transactions represent net gains and losses from sales and maturities of forward currency contracts, disposition of foreign currencies, currency gains and losses realized between the trade and settlement dates on securities transactions, and the difference between the amount of net investment income accrued and the U.S. dollar amount actually received. The effects of changes in foreign currency exchange rates on investments in securities are included with the net realized and unrealized gain or loss on investment securities. INCOME TAXES. France, Germany, Hong Kong and China, Japan Small Companies, Nordic and United Kingdom intend to qualify as regulated investment companies under Subchapter M of the Internal Revenue Code. Each fund may be subject to foreign taxes on income, gains on investments or currency repatriation. Each fund accrues such taxes as applicable. The schedules of investments include information regarding income taxes under the caption "Income Tax Information." INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, are recorded as soon as the funds are informed of the ex-dividend date. Interest income, which includes accretion of original issue discount, is accrued as earned. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. EXPENSES. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned between the funds in the trust. PREPAID EXPENSES. FMR bears all organizational expenses except for registering and qualifying the funds and shares of the funds for distribution under federal and state securities law. These expenses are borne by the funds and amortized over their initial year of operation. DISTRIBUTIONS TO SHAREHOLDERS. Income and capital gain distributions are determined in accordance with income tax regulations which may differ from generally accepted accounting principles. These differences may result in distribution reclassifications. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to paid in capital and may affect the per-share allocation between net investment income and realized and unrealized gain (loss). Undistributed net investment income (loss), or distributions in excess of net investment income, and accumulated undistributed net realized gain (loss) on investments and foreign currency transactions may include temporary book and tax basis differences which will reverse in a subsequent period. Any taxable income or gain remaining at fiscal year end is distributed in the following year. REDEMPTION FEES. Shares held in France, Germany, Hong Kong and China, Japan Small Companies, Nordic and United Kingdom less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. SECURITY TRANSACTIONS. Security transactions are accounted for as of the trade date. Gains and losses on securities sold are determined on the basis of identified cost. 2. OPERATING POLICIES. FORWARD FOREIGN CURRENCY CONTRACTS. The funds may use foreign currency contracts to facilitate transactions in foreign securities and to manage the funds' currency exposure. Contracts to buy generally are used to acquire exposure to foreign currencies, while contracts to sell are used to hedge the funds' investments against currency fluctuations. Also, a contract to buy or sell can offset a previous contract. Losses may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms. The U.S. dollar value of 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. 2. OPERATING POLICIES - CONTINUED JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the funds, along with other affiliated entities of Fidelity Management & Research Company (FMR), may transfer uninvested cash balances into one or more joint trading accounts. These balances are invested in one or more repurchase agreements that mature in 60 days or less from the date of purchase, and are collateralized by U.S. Treasury or Federal Agency obligations. REPURCHASE AGREEMENTS. The funds, through their custodians, receive delivery of the underlying U.S. Treasury or Federal Agency securities, the market value of which is required to be at least equal to the repurchase price. For term repurchase agreement transactions, the underlying securities are marked-to-market daily and maintained at a value at least equal to the repurchase price. FMR, the funds' investment adviser, is responsible for determining that the value of the underlying securities remains in accordance with the market value requirements stated above. 3. PURCHASES AND SALES OF INVESTMENTS. Information regarding purchases and sales of securities (other than short-term securities) and the market value of futures contracts opened and closed is included under the caption "Other Information" at the end of each applicable fund's schedule of investments. 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES. MANAGEMENT FEE. As each fund's investment adviser, FMR receives a monthly fee that is calculated on the basis of a group fee rate plus a fixed individual fund fee rate applied to the average net assets of each fund. The group fee rate is the weighted average of a series of rates and is based on the monthly average net assets of all the mutual funds advised by FMR. The rates ranged from .2500% to .5200% for the period. In the event that these rates were lower than the contractual rates in effect during the period, FMR voluntarily implemented the above rates, as they resulted in the same or a lower management fee. The annual individual fund fee rate is .45% for each fund. For the period, each fund's management fee was equivalent to the following annualized rates expressed as a percentage of average net assets after the performance adjustment, if applicable: France .77% Germany .77% Hong Kong and China .77% Japan Small Companies .77% Nordic .77% United Kingdom .76% SUB-ADVISER FEE. FMR, on behalf of the funds, entered into sub-advisory agreements with Fidelity Management & Research (U.K.) Inc., Fidelity Management & Research Far East Inc., Fidelity International Investment Advisors (FIIA), and Fidelity Investment Japan Ltd. (Japan Small Companies, and Hong Kong and China only). In addition, FIIA entered into a sub-advisory agreement with its subsidiary, Fidelity International Investment Advisors (U.K.) Limited (FIIAL U.K.). Under the sub-advisory arrangements, FMR may receive investment advice and research services and may grant the sub-advisers investment management authority to buy and sell securities. FMR pays its sub-advisers either a portion of its management fee or a fee based on costs incurred for these services. FIIA pays FIIAL U.K. a fee based on costs incurred for either service. SALES LOAD. Fidelity Distributors Corporation (FDC), an affiliate of FMR, is the general distributor of the funds. FDC is paid a 3% sales charge on sales of shares of each fund. The amount received by FDC for sales charges is shown under the caption "Other Information" on each applicable fund's Statement of Operations. TRANSFER AGENT FEE. 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, each fund's transfer agent fees were equivalent to the following annualized rates expressed as a percentage of average net assets: France .30% Germany .32% Hong Kong and China .34% Japan Small Companies .29% Nordic .36% United Kingdom .27% ACCOUNTING FEE. FSC maintains the funds' accounting records. The fee is based on the level of average net assets for the month plus out-of-pocket expenses. BROKERAGE COMMISSIONS. Certain funds placed a portion of their portfolio transactions with brokerage firms which are affiliates of FMR. The commissions paid to these affiliated firms are shown under the caption "Other Information" at the end of each applicable fund's schedule of investments. 5. EXPENSE REDUCTIONS. FMR voluntarily agreed to reimburse certain funds' operating expenses (excluding interest, taxes, brokerage commissions and extraordinary expenses) above an annual rate of 2.00% of average net assets. FMR has directed certain portfolio trades to brokers who paid a portion of certain funds' expenses. In addition, certain funds have entered into arrangements with their custodian and transfer agent whereby interest earned on uninvested cash balances was used to offset a portion of certain funds' expenses. For the period, the reductions under these arrangements are shown under the caption "Other Information" on each applicable fund's Statement of Operations. 6. BENEFICIAL INTEREST. At the end of the period, FMR and its subsidiaries were the record owners of more than 5% of the outstanding shares of the following funds: FMR FUND % OF OWNERSHIP France 16 Germany 17 Nordic 14 United Kingdom 49 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 - CP61 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 TO VISIT FIDELITY For directions and hours, please call 1-800-544-9797. ARIZONA 7373 N. Scottsdale Road Scottsdale, AZ CALIFORNIA 851 East Hamilton Avenue Campbell, CA 527 North Brand Boulevard Glendale, CA 19100 Von Karman Avenue Irvine, CA 10100 Santa Monica Blvd. Los Angeles, CA 811 Wilshire Boulevard Los Angeles, CA 251 University Avenue Palo Alto, CA 1760 Challenge Way Sacramento, CA 7676 Hazard Center Drive San Diego, CA 950 Northgate Drive San Rafael, CA 455 Market Street San Francisco, CA 1400 Civic Drive Walnut Creek, CA 6300 Canoga Ave. Woodland Hills, CA COLORADO 1625 Broadway Denver, CO CONNECTICUT 185 Asylum Street Hartford, CT 265 Church Street New Haven, CT 300 Atlantic Street Stamford, CT DELAWARE 222 Delaware Avenue Wilmington, DE FLORIDA 4400 N. Federal Highway Boca Raton, FL 90 Alhambra Plaza Coral Gables, FL 4090 N. Ocean Boulevard Ft. Lauderdale, FL 4001 Tamiami Trail, North Naples, FL 1907 West State Road 434 Orlando, FL 2401 PGA Boulevard Palm Beach Gardens, FL 8065 Beneva Road Sarasota, FL 2000 66th Street, North St. Petersburg, FL GEORGIA 3525 Piedmont Road, N.E. Atlanta, GA 1000 Abernathy Road Atlanta, GA HAWAII 700 Bishop Street Honolulu, HI ILLINOIS 215 East Erie Street Chicago, IL One North Franklin Chicago, IL 540 Lake Cook Road Deerfield, IL 1415 West 22nd Street Oak Brook, IL 1700 East Golf Road Schaumburg, IL LOUISIANA 201 St. Charles Avenue New Orleans, LA MAINE 3 Canal Plaza Portland, ME MARYLAND 7401 Wisconsin Avenue Bethesda, MD 1 West Pennsylvania Ave. Towson, MD MASSACHUSETTS 470 Boylston Street Boston, MA 21 Congress Street Boston, MA 25 State Street Boston, MA 300 Granite Street Braintree, MA 44 Mall Road Burlington, MA 416 Belmont Street Worcester, MA MICHIGAN 280 North Woodward Ave. Birmingham, MI 29115 Northwestern Hwy. Southfield, MI MINNESOTA 7600 France Avenue South Edina, MN MISSOURI 700 West 47th Street Kansas City, MO 8885 Ladue Road Ladue, MO 200 North Broadway St. Louis, MO NEW JERSEY 56 South Street Morristown, NJ 501 Route 17, South Paramus, NJ 505 Millburn Avenue Short Hills, NJ NEW YORK 1050 Franklin Avenue Garden City, NY 999 Walt Whitman Road Melville, L.I., NY 1271 Avenue of the Americas New York, NY 71 Broadway New York, NY 350 Park Avenue New York, NY 10 Bank Street White Plains, NY NORTH CAROLINA 4611 Sharon Road Charlotte, NC 2200 West Main Street Durham, NC OHIO 600 Vine Street Cincinnati, OH 28699 Chagrin Boulevard Woodmere Village, OH 1903 East Ninth Street Cleveland, OH OREGON 121 S.W. Morrison Street Portland, OR PENNSYLVANIA 1735 Market Street Philadelphia, PA 439 Fifth Avenue Pittsburgh, PA TENNESSEE 5100 Poplar Avenue Memphis, TN TEXAS 10000 Research Boulevard Austin, TX 7001 Preston Road Dallas, TX 1155 Dairy Ashford Houston, TX 2701 Drexel Drive Houston, TX 1010 Lamar Street Houston, TX 400 East Las Colinas Blvd. Irving, TX 14100 San Pedro San Antonio, TX UTAH 215 South State Street Salt Lake City, UT VERMONT 199 Main Street Burlington, VT VIRGINIA 8180 Greensboro Drive McLean, VA WASHINGTON 411 108th Avenue, N.E. Bellevue, WA 511 Pine Street Seattle, WA WASHINGTON, DC 1775 K Street, N.W. Washington, DC WISCONSIN 595 North Barker Road Brookfield, WI TO CALL FIDELITY FOR PORTFOLIO 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 recorded 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. INVESTMENT ADVISER Fidelity Management & Research Company Boston, MA INVESTMENT SUB-ADVISERS Fidelity Management & Research (U.K.) Inc., London, England Fidelity Management & Research (Far East) Inc., Tokyo, Japan Fidelity Investments Japan Ltd. Fidelity International Investment Advisors Fidelity International Investment Advisors (U.K.) Limited OFFICERS Edward C. Johnson 3d, PRESIDENT J. Gary Burkhead, SENIOR VICE PRESIDENT Richard Hazlewood, VICE PRESIDENT, EMERGING MARKETS Shigeki Makino, VICE PRESIDENT, JAPAN FUND, PACIFIC BASIN FUND Patricia Satterthwaite, VICE PRESIDENT, LATIN AMERICA FUND Thomas Sweeney, VICE PRESIDENT, CANADA FUND Sally Walden, VICE PRESIDENT, EUROPE FUND Arthur S. Loring, SECRETARY Kenneth A. Rathgeber, TREASURER Robert H. Morrison, MANAGER, SECURITY TRANSACTIONS John H. Costello, ASSISTANT TREASURER Leonard M. Rush, ASSISTANT TREASURER BOARD OF TRUSTEES 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 * GENERAL DISTRIBUTOR Fidelity Distributors Corporation Boston, MA TRANSFER AND SHAREHOLDER SERVICING AGENT Fidelity Service Co. Boston, MA * INDEPENDENT TRUSTEES CUSTODIANS Chase Manhattan Bank, N.A. New York, NY EMERGING MARKETS FUND, EUROPE FUND, EUROPE CAPITAL APPRECIATION FUND, JAPAN FUND, PACIFIC BASIN FUND, SOUTHEAST ASIA FUND Brown Brothers Harriman & Co. Boston, MA CANADA FUND, FRANCE FUND, GERMANY FUND, HONG KONG AND CHINA FUND, JAPAN SMALL COMPANIES FUND, LATIN AMERICA FUND, NORDIC FUND, UNITED KINGDOM FUND FIDELITY'S INTERNATIONAL EQUITY FUNDS Canada Fund Diversified International Fund Emerging Markets Fund Europe Fund Europe Capital Appreciation Fund France Fund Germany Fund Hong Kong and China Fund International Growth and Income Fund International Value Fund Japan Fund Japan Small Companies Fund Latin America Fund Nordic Fund Overseas Fund Pacific Basin Fund Southeast Asia Fund United Kingdom Fund Worldwide Fund CORPORATE HEADQUARTERS 82 Devonshire Street Boston, MA 02109 1-800-544-8888 THE FIDELITY TELEPHONE CONNECTION MUTUAL FUND 24-HOUR SERVICE 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) AUTOMATED LINES FOR QUICKEST SERVICE BULK RATE U.S. POSTAGE P A I D F I D E L I T Y INVESTMENTS (registered trademark) P.O. Box 193 Boston, MA 02101 EX-27.181 17
6 0000744822 Fidelity Investment Trust 181 Fidelity France Fund 1,000 6-MOS OCT-31-1996 APR-30-1996 7,314 7,994 106 15 0 8,115 644 0 75 719 0 6,707 632 0 0 14 22 0 681 7,396 12 26 (2) 39 (3) 22 681 700 0 11 0 0 794 163 1 7,396 0 0 0 0 15 0 119 4,081 10.000 (.010) 1.720 .040 0 0 11.710 200 0 0 EX-27.191 18
6 0000744822 Fidelity Investment Trust 191 Fidelity Germany Fund 1,000 6-MOS OCT-31-1996 APR-30-1996 6,044 6,187 246 14 0 6,447 92 0 168 260 0 6,068 589 0 (16) 0 (8) 0 143 6,187 23 5 (2) 42 (16) (8) 143 119 0 0 0 0 704 116 0 6,187 0 0 0 0 16 0 105 4,349 10.000 (.030) .520 0 0 0 10.510 200 0 0 EX-27.201 19
6 0000744822 Fidelity Investment Trust 201 Fidelity Hong Kong and China Fund 1,000 6-MOS OCT-31-1996 APR-30-1996 73,756 74,049 2,356 14 0 76,419 619 0 539 1,158 0 74,165 6,754 0 564 0 239 0 293 75,261 882 98 (35) 370 575 239 293 1,107 0 11 0 0 8,492 1,739 1 75,261 0 0 0 0 143 0 379 37,953 10.000 .170 .930 .010 0 0 11.140 200 0 0 EX-27.211 20
6 0000744822 Fidelity Investment Trust 211 Fidelity Japan Small Companies Fund 1,000 6-MOS OCT-31-1996 APR-30-1996 135,929 146,412 7,713 14 0 154,139 4,880 0 208 5,088 0 138,124 13,103 0 39 0 403 0 10,485 149,051 305 289 (46) 509 39 403 10,485 10,927 0 0 0 0 15,130 2,026 0 149,051 0 0 0 0 282 0 508 75,230 10.000 .010 1.340 0 0 0 11.370 138 0 0 EX-27.221 21
6 0000744822 Fidelity Investment Trust 221 Fidelity Nordic Fund 1,000 6-MOS OCT-31-1996 APR-30-1996 7,528 7,873 117 15 0 8,005 36 0 61 97 0 7,492 732 0 65 0 6 0 345 7,908 119 9 (18) 45 65 5 345 415 0 0 0 0 831 98 0 7,908 0 0 0 0 17 0 141 4,644 10.000 .090 .700 0 0 0 10.800 200 0 0 EX-27.231 22
6 0000744822 Fidelity Investment Trust 231 Fidelity United Kingdom Fund 1,000 6-MOS OCT-31-1996 APR-30-1996 2,096 2,223 74 14 0 2,311 87 0 25 112 0 2,057 206 0 13 0 2 0 127 2,199 38 2 (4) 17 19 2 127 148 0 6 0 0 220 15 1 2,199 0 0 0 0 7 0 91 1,752 10.000 .100 .630 .040 0 0 10.690 200 0 0 -----END PRIVACY-ENHANCED MESSAGE-----