Fidelity Investment Trust · N-30B-2 · For 4/30/94

Filed On 6/28/94   ·   SEC File 811-04008   ·   Accession Number 729218-94-14

Periodic or Interim Report Mailed to Shareholders   ·   Rule 30b-2
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 1: N-30B-2     Periodic or Interim Report Mailed to Shareholders    276± 1,209K 

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(2_FIDELITY_LOGOS)FIDELITY                                                      
INTERNATIONAL EQUITY                                                            
FUNDS                                                                           
Broadly Diversified Funds                                                       
FIDELITY DIVERSIFIED INTERNATIONAL FUND                                         
FIDELITY INTERNATIONAL GROWTH & INCOME FUND                                 
FIDELITY OVERSEAS FUND                                                          
FIDELITY WORLDWIDE FUND                                                         
Regional/Single Country Funds                                                   
FIDELITY CANADA FUND                                                            
FIDELITY EUROPE FUND                                                            
FIDELITY EUROPE CAPITAL                                                         
APPRECIATION FUND                                                               
FIDELITY JAPAN FUND                                                             
FIDELITY PACIFIC BASIN FUND                                                     
Emerging Markets Funds                                                          
FIDELITY EMERGING MARKETS FUND                                                  
FIDELITY LATIN AMERICA FUND                                                     
FIDELITY SOUTHEAST ASIA FUND                                                    
SEMIANNUAL REPORT                                                               
APRIL 30, 1994                                                                  
CONTENTS                                                                        

                                                                · Download Table

                                                                               
PRESIDENT'S MESSAGE                          NED JOHNSON ON OVERSEAS INVESTING.

BROADLY DIVERSIFIED FUNDS                                                      

DIVERSIFIED INTERNATIONAL FUND               PERFORMANCE                       
                                             FUND TALK: THE MANAGER'S OVERVIEW 
                                             INVESTMENT CHANGES                
                                             INVESTMENTS                       
                                             FINANCIAL STATEMENTS              

INTERNATIONAL GROWTH & INCOME FUND       PERFORMANCE                       
                                             FUND TALK: THE MANAGER'S OVERVIEW 
                                             INVESTMENT CHANGES                
                                             INVESTMENTS                       
                                             FINANCIAL STATEMENTS              

OVERSEAS FUND                                PERFORMANCE                       
                                             FUND TALK: THE MANAGER'S OVERVIEW 
                                             INVESTMENT CHANGES                
                                             INVESTMENTS                       
                                             FINANCIAL STATEMENTS              

WORLDWIDE FUND                               PERFORMANCE                       
                                             FUND TALK: THE MANAGER'S OVERVIEW 
                                             INVESTMENT CHANGES                
                                             INVESTMENTS                       
                                             FINANCIAL STATEMENTS              

REGIONAL/SINGLE COUNTRY FUNDS                                                  

CANADA FUND                                  PERFORMANCE                       
                                             FUND TALK: THE MANAGER'S OVERVIEW 
                                             INVESTMENT CHANGES                
                                             INVESTMENTS                       
                                             FINANCIAL STATEMENTS              

EUROPE FUND                                  PERFORMANCE                       
                                             FUND TALK: THE MANAGER'S OVERVIEW 
                                             INVESTMENT CHANGES                
                                             INVESTMENTS                       
                                             FINANCIAL STATEMENTS              

EUROPE CAPITAL APPRECIATION FUND             PERFORMANCE                       
                                             FUND TALK: THE MANAGER'S OVERVIEW 
                                             INVESTMENT SUMMARY                
                                             INVESTMENTS                       
                                             FINANCIAL STATEMENTS              

JAPAN FUND                                   PERFORMANCE                       
                                             FUND TALK: THE MANAGER'S OVERVIEW 
                                             INVESTMENT CHANGES                
                                             INVESTMENTS                       
                                             FINANCIAL STATEMENTS              

PACIFIC BASIN FUND                           PERFORMANCE                       
                                             FUND TALK: THE MANAGER'S OVERVIEW 
                                             INVESTMENT CHANGES                
                                             INVESTMENTS                       
                                             FINANCIAL STATEMENTS              

EMERGING MARKETS FUNDS                                                         

EMERGING MARKETS FUND                        PERFORMANCE                       
                                             FUND TALK: THE MANAGER'S OVERVIEW 
                                             INVESTMENT CHANGES                
                                        102  INVESTMENTS                       
                                             FINANCIAL STATEMENTS              

LATIN AMERICA FUND                           PERFORMANCE                       
                                             FUND TALK: THE MANAGER'S OVERVIEW 
                                             INVESTMENT CHANGES                
                                             INVESTMENTS                       
                                             FINANCIAL STATEMENTS              

SOUTHEAST ASIA FUND                          PERFORMANCE                       
                                             FUND TALK: THE MANAGER'S OVERVIEW 
                                             INVESTMENT CHANGES                
                                             INVESTMENTS                       
                                             FINANCIAL STATEMENTS              

NOTES TO FINANCIAL STATEMENTS                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. NEITHER THE          
FUNDS NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK AND FUND SHARES ARE       
NOT BACKED OR GUARANTEED BY ANY BANK OR INSURED BY THE FDIC.                    
PRESIDENT'S MESSAGE                                                             

DEAR SHAREHOLDER:                                                               
After posting strong gains in 1993, several foreign markets suffered            
corrections shortly after the new year began. Hardest hit were markets in       
the Far East - except for Japan - and Latin America. In some cases, markets     
with the greatest declines in early 1994 were among the previous year's         
strongest performers.                                                           
What happened? Stock prices in emerging markets such as Brazil, Malaysia        
and Singapore rose dramatically in 1993. For example, the Morgan Stanley        
Emerging Markets Free Index was up 73.21% for the year. Corporate earnings      
in many of these countries grew quickly, as governments took positive steps     
to improve their economies. The prospects of these economies clearly            
captured the imagination of U.S. investors, and in 1993 alone, more than        
$38 billion flowed into international equity funds. This was up from just       
$7 billion in 1992.                                                             
While these markets rewarded investors in 1993, the corrections of early        
1994 demonstrated that volatility is a fact of life in international            
markets. Morgan Stanley Capital International showed that Turkey, for           
example, declined more than 68% in U.S. dollars in the first four months of     
1994 alone. In Brazil, the market soared more than 352% in local currency;      
but when converted to dollars, made a dollar gain of about 11%.                 
How will these markets perform next month or next year? In some ways,           
foreign stock prices act like the stock prices of smaller companies in the      
U.S.; a change in sentiment or profit taking in relatively small markets        
can lead to a quick drop in prices. Inversely, countries and regions can        
come into favor so                                                              
quickly that their prices can shoot up much higher than fundamentals may        
suggest. The extent of these extremes is often, but not always, tied to a       
market's size and level of development; the more developed a market, the        
less volatile it is likely to be, and vice versa.                               
In view of these factors, here are some principles you may wish to keep in      
mind:                                                                           
First, take a long-term approach when investing in stocks, particularly         
overseas. If you can afford to leave your money invested through the            
inevitable ups and downs of foreign markets, you will reduce your               
vulnerability to any single decline. As you can see from the chart below, a     
broad measure such as the Morgan Stanley Europe, Australia and Far East         
(EAFE) Index can be more volatile from year to year than the Standard &     
Poor's 500 index, which tracks the performance of U.S. stocks. Yet on a         
cumulative basis, the EAFE out-performed the S&P 377.73% to 297.92% for     
the 10 years ended April 30, 1994.                                              
Second, you may want to consider certain international stocks to be             
higher-risk when compared to the New York Stock Exchange Composite Index.       
Remember that even within the international part of your investments you        
can reduce - but not eliminate - risk by spreading your investments across      
many countries or regions. Finally, keep in mind the effects of currency        
fluctuations, which can have a significant impact on returns - as we saw in     
the example of Brazil.                                                          
Although it's never easy to watch stock prices fall, market declines are a      
normal part of investing, whether overseas or at home. After market             
downturns, some investors question the wisdom of their investments. That's      
why I think it is important to review these principles periodically.            
To ignore the potential of international markets would be to forego the         
opportunities that exist there. Before you let your imagination run too         
far, remind yourself that international investing may be a bumpy ride.          
Best regards,                                                                   

Edward C. Johnson 3d                                                            

S&P 500 EAFE                                                              
* YEAR TO DATE THROUGH APRIL 30, 1994                                         
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                                                    
%                                                                               
DIVERSIFIED INTERNATIONAL                                                       
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). Diversified          
International has a 3% sales charge, which has been waived since the fund's     
start on December 27, 1991 through June 30, 1995.                               
CUMULATIVE TOTAL RETURNS                                                        
PERIODS ENDED                PAST 6   PAST 1   LIFE OF                          
APRIL 30, 1994               MONTHS   YEAR     FUND                             

DIVERSIFIED INTERNATIONAL    7.57%    17.09%   23.21%                           

Morgan Stanley GDP-                                                             
weighted EAFE Index         9.19%    21.20%   37.44%                          

Average International Fund   6.70%    21.97%   n/a                              

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms        
over a set period - in this case, six months, one year, or since the fund       
started on December 27, 1991. You can compare the fund figures to the           
performance of  the Morgan Stanley GDP-weighted EAFE index - a broad            
measure of the performance of stocks in Europe, Australia, and the Far          
East, weighted by each country's gross domestic product. You can also           
compare the fund's performance to the average international fund which          
reflects the performance of 170 funds with similar objectives tracked by        
Lipper Analytical Services. These benchmarks include reinvested dividends       
and capital gains, if any, and exclude the effects of sales charges.            
AVERAGE ANNUAL TOTAL RETURNS                                                    
PERIODS ENDED                PAST 1   LIFE OF                                   
APRIL 30, 1994               YEAR     FUND                                      

DIVERSIFIED INTERNATIONAL    17.09%   9.31%                                     

Morgan Stanley GDP-                                                             
weighted EAFE Index         21.20%   14.52%                                   

Average International Fund   21.97%   n/a                                       

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return      
and show you what would have happened if the fund had performed at a            
constant rate each year.                                                        
$10,000 OVER LIFE OF FUND                                                       
Diversified Int'l (325) MS GDP-Weighted EAFE                
12/27/91                10000.00             10000.00                         
12/31/91                10060.00             10275.57                         
01/31/92                 9860.00             10188.63                         
02/29/92                 9680.00             10050.14                         
03/31/92                 9140.00              9554.95                         
04/30/92                 9240.00              9638.28                         
05/31/92                 9750.00             10205.78                         
06/30/92                 9540.00              9873.69                         
07/31/92                 9190.00              9524.06                         
08/31/92                 9350.00              9997.89                         
09/30/92                 9140.00              9631.08                         
10/31/92                 8460.00              9240.11                         
11/30/92                 8460.00              9285.20                         
12/31/92                 8671.06              9283.63                         
01/31/93                 8873.42              9391.13                         
02/28/93                 9176.95              9719.67                         
03/31/93                 9915.56             10383.39                         
04/30/93                10522.64             11339.71                         
05/31/93                10785.70             11516.97                         
06/30/93                10482.17             11317.62                         
07/31/93                10805.94             11658.22                         
08/31/93                11362.42             12512.58                         
09/30/93                11210.66             12250.09                         
10/31/93                11453.49             12586.98                         
11/30/93                11028.53             11584.19                         
12/31/93                11850.64             12399.01                         
01/31/94                12739.44             13347.09                         
02/28/94                12484.04             13273.82                         
03/31/94                12085.61             13083.23                         
04/30/94                12320.58             13744.12                         

Let's say you invested $10,000 in Fidelity Diversified International Fund       
on its start date. By April 30, 1994, it would have grown to $12,321 - a        
23.21% increase on your initial investment. That compares to $10,000            
invested in the Morgan Stanley GDP-weighted EAFE index, which would have        
grown to $13,744 over the same period - a 37.44% increase.                      

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.                                  
(checkmark)                                                                     
DIVERSIFIED INTERNATIONAL                                                       
FUND TALK: THE MANAGER'S OVERVIEW                                               

An interview with Greg Fraser,                                                  
Portfolio Manager of Fidelity Diversified International Fund                    
Q. GREG, HOW DID THE FUND PERFORM?                                              
A. The fund did moderately well compared to other international funds for       
the six month period. It was up 7.57% during the six months through April       
30, versus a 6.70% total return for the average international fund tracked      
by Lipper Analytical Services. However, it trailed the Morgan Stanley           
GDP-weighted EAFE index, a measure of stock performance in Europe,              
Australia and the Far East that is adjusted to reflect the size of each         
country's economy. The total return for the index was 9.19%. For the 12         
months ended April 30, the fund returned 17.09%, compared to 21.20% for the     
EAFE index and 21.97% for the average fund.                                     
Q. WHY DID THE FUND TRAIL THE GDP-WEIGHTED EAFE INDEX?                          
A. I can answer that in two words: Italy and Japan. They were two of the        
best-performing international markets, and the fund was underweighted in        
both of them - as were most funds. During the period, the fund had as           
little as 17% of its assets in Japanese stocks, which account for about 30%     
of the GDP-EAFE index. In Italy, which accounts for 12% of the GDP-EAFE         
index, the fund's holdings were around 4% of its total investments.             
Q. WHY DID YOU LIMIT YOUR JAPANESE AND ITALIAN INVESTMENTS?                     
A. I rely partly on sophisticated computer models to evaluate data about        
factors such as stock valuations - prices compared to other measures such       
as earnings - and corporate earnings in different markets. Although many        
stocks in Japan looked moderately cheap at the start of this period,            
earnings estimates kept falling so I didn't invest heavily there. More          
recently, projected earnings growth for many Japanese companies looked          
better, and I gradually boosted the fund's exposure to around 28% of its        
total investments. In fact, the fund's largest holdings include shares of       
electronic equipment manufacturers Hitachi, Matsushita and Sony. All three      
of those companies have been diligent about cutting costs, so their             
earnings could be surprisingly strong over the next several years.              
Meanwhile, the stocks look very inexpensive. In Italy, stock prices were        
affected by psychological factors such as the country's March elections,        
which don't show up in our quantitative models. Even so, our 4% stake in        
Italy is fairly high compared to some other international funds. The fund's     
largest holdings include Stet (Societa Finanziaria Telefonica), the holding     
company for Italy's telephone operating company.                                
Q. AFTER JAPAN, THE FUND'S LARGEST SINGLE COUNTRY INVESTMENTS WERE IN           
FRANCE AND GERMANY. WHY?                                                        
A. In France, interest rates have declined and I think the country's            
economy is beginning to recover from recession. In addition, the French         
government is making plans to sell off its ownership in a number of large       
firms such as Credit Lyonnais, the large banking company. Such                  
privatization programs often tend to boost stock prices. As for Germany,        
most investors are avoiding the German stock market now because wages have      
increased and productivity has declined, in part due to the after-effects       
of German reunification. But while that might be true for Germany as a          
whole, it's not necessarily true for every German company. For example,         
labor costs are a relatively small portion of expenses for chemical             
companies such as Bayer AG, which is one of the fund's largest investments.     
Q. YOU ALSO HELD SHARES OF DEUTSCHE BANK, THE LARGE GERMAN BANK. HOW DID        
THAT STOCK PERFORM?                                                             
A. The shares declined in value after it was disclosed that the bank had        
made loans to a German developer who fled the country. That's a good            
example of the kinds of risks you sometimes encounter overseas. However, I      
believe that the stock will be a solid performer as the German economy          
emerges from its doldrums. One reason is that Deutsche Bank owns stock in       
many German blue chips - for example, it has a sizable stake in                 
Daimler-Benz, the largest German auto company - and thus offers broad           
exposure to the German economy.                                                 
Q. ANY OTHER DISAPPOINTMENTS DURING THE PERIOD?                                 
A. The fund held shares in some firms that failed to deliver on investors'      
profit expectations and their stock prices suffered. They were generally        
small companies such as Culturcom Holdings, a Hong Kong publisher of comic      
books; and Dreco Energy Services, a Canadian oil services company.              
Q. SIX MONTHS AGO, THE FUND'S LARGEST CONCENTRATION OF INVESTMENTS APART        
FROM JAPAN WAS IN GREAT BRITAIN. WHAT CHANGED?                                  
A. The U.K. came out of its recession earlier than the rest of Europe, and      
that boosted stock prices. As the market became more expensive I shifted        
some of the fund's assets from the U.K. to countries with more attractive       
opportunities.                                                                  
Q. THE FUND'S INVESTMENT IN EMERGING MARKETS OTHER THAN HONG KONG REMAINS       
UNDER 5% OF ITS TOTAL HOLDINGS. DO YOU PLAN TO INCREASE THAT INVESTMENT?        
A. Yes, but I will do so in a prudent way, taking advantage of market           
pullbacks to buy shares inexpensively. Although Hong Kong might be              
considered a more developed market, it's worth noting that I started to add     
to the fund's investments in that market as share prices declined during        
the past several months.                                                        
Q. THERE'S BEEN A LOT OF TALK LATELY ABOUT DERIVATIVES. DOES THE FUND USE       
THEM?                                                                           
A. I have been making modest use of currency forward contracts. While that      
is my only use of derivatives currently, I might use them more in the           
future depending on market conditions.                                          
Q. WHAT'S THE OUTLOOK FOR THE FUND?                                             
A. I have become more optimistic than I was six months ago. As stock prices     
in many overseas markets have retreated from their peaks, more attractively     
priced opportunities have appeared. Also, overseas markets have tended to       
outperform the U.S. market in three- to four-year cycles, and we are now        
just entering the third year. I think there is still room for foreign           
stocks to outperform U.S. stocks for the next year or two.                      

FUND FACTS                                                                      
GOAL: to increase the value of the fund's shares                                
by investing mainly in countries included in the                                
Morgan Stanley GDP-weighted EAFE (Europe,                                       
Australia, Far East) index, with help from                                      
quantitative computer models                                                    
START DATE: December 27, 1991                                                   
SIZE: as of April 30, 1994, more than $333 million                              
MANAGER: Gregory Fraser, since December                                         
1991; manager, Fidelity Select Defense and                                      
Aerospace Portfolio, 1989-1990; and Fidelity                                    
Select Environmental Services Portfolio, 1991;                                  
joined Fidelity in 1986                                                         
(checkmark)                                                                     
GREG FRASER ON THE FUND'S STRATEGY:                                             
"Our goal is the same as most funds' goals: to find                             
cheap stocks of companies with strong finances and                              
good prospects. But I do it in a slightly different way,                        
using quantitative techniques. I rely on models that                            
analyze historical data about stock prices, interest                            
rates, earnings growth and inflation in each market                             
and then compare that data to current conditions. The                           
models also look at individual stocks, to find issues                           
that are trading at low prices relative to factors such as                      
their earnings and sales. And they consider the                                 
companies' prospects for future profit growth. Finally, I                       
consult Fidelity's analysts, who add their judgment to                          
the models' conclusions. Often, the analysts can add                            
an element of knowledge or judgment that will                                   
supersede the models. Based on all of that, I decide                            
which stocks are most attractive now."                                          
(bullet)  As of April 30, 1994, the fund's investments were                     
divided among stocks in more than 30 countries in                               
Europe, Japan, and elsewhere.                                                   
(bullet)  About 28% of the fund's investments were in                           
Japanese stocks. European stock markets accounted                               
for 49.4% of the fund's investments. The fund also                              
held a 7.7% stake in emerging markets including                                 
Hong Kong.                                                                      
(bullet)  The fund's largest industry sector was finance,                       
which accounted for 17.9% of its total investments on                           
April 30, 1994. The second-largest sector was                                   
durables (12%).                                                                 
DIVERSIFIED INTERNATIONAL                                                       
INVESTMENT CHANGES                                                              

GEOGRAPHIC DIVERSIFICATION                                                      
AS OF APRIL 30, 1994                                                            

United States 7.0%                                                              
Australia 4.7%                                                                  
United                                                                          
Kingdom 7.2%                                                                    
Row: 1, Col: 1, Value: 7.0                                                      
Row: 1, Col: 2, Value: 7.2                                                      
Row: 1, Col: 3, Value: 3.7                                                      
Row: 1, Col: 4, Value: 22.4                                                     
Row: 1, Col: 5, Value: 3.3                                                      
Row: 1, Col: 6, Value: 28.0                                                     
Row: 1, Col: 7, Value: 4.4                                                      
Row: 1, Col: 8, Value: 9.0                                                      
Row: 1, Col: 9, Value: 10.3                                                     
Row: 1, Col: 10, Value: 4.7                                                     
France 10.3%                                                                    
Switzerland 3.7%                                                                
Germany 9.0%                                                                    
Italy 4.4%                                                                      
Other 22.4%                                                                     
Netherlands 3.3%                                                                
Japan 28.0%                                                                     
AS OF OCTOBER 31, 1993                                                          
United States 11.6%                                                             
Australia 5.0%                                                                  
Row: 1, Col: 1, Value: 11.6                                                     
Row: 1, Col: 2, Value: 13.1                                                     
Row: 1, Col: 3, Value: 4.4                                                      
Row: 1, Col: 4, Value: 3.5                                                      
Row: 1, Col: 5, Value: 18.9                                                     
Row: 1, Col: 6, Value: 18.5                                                     
Row: 1, Col: 7, Value: 10.3                                                     
Row: 1, Col: 8, Value: 8.800000000000001                                        
Row: 1, Col: 9, Value: 5.9                                                      
Row: 1, Col: 10, Value: 5.0                                                     
Canada 5.9%                                                                     
United                                                                          
Kingdom 13.1%                                                                   
France 8.8%                                                                     
Switzerland 4.4%                                                                
Germany 10.3%                                                                   
Spain 3.5%                                                                      
Japan 18.5%                                                                     
Other 18.9%                                                                     
ASSET ALLOCATION                                                                
% OF FUND'S    % OF FUND'S    
INVESTMENTS    INVESTMENTS    
            6 MONTHS AGO

Stocks                   92.5           87.8                                    

Bonds                    0.5            0.6                                     

Short-term investments   7.0            11.6                                    

TOP TEN STOCKS                                                                  

                                                                · Download Table

                                                                             
                                                  % OF FUND'S    % OF FUND'S 
                                                  INVESTMENTS    INVESTMENTS 
                                                                 6 MONTHS AGO

Hitachi, Ltd.                                                                
(Japan, Electronics)                              2.2            0.2         

Matsushita Electric Industrial Co. Ltd.                                      
(Japan, Consumer Electronics)                     1.9            1.1         

Deutsche Bank AG                                                             
(Germany, Banks)                                  1.8            1.5         

Sony Corp.                                                                   
(Japan, Consumer Electronics)                     1.7            0.9         

Stet (Societa Finanziaria Telefonica Spa) Ord.    1.5            0.5         
(Italy, Telephone Services)                                                  

Bayer AG                                                                     
(Germany, Chemicals & Plastics)               1.4            1.0         

Royal Dutch Petroleum Co.                                                    
(Netherlands, Oil & Gas)                      1.3            -           

Nomura Securities Co. Ltd.                                                   
(Japan, Securities Industry)                      1.3            -           

Nokia AB free shares                                                         
(Finland, Communications Equipment)               1.3            0.2         

SIP Spa                                                                      
(Italy, Telephone Services)                       1.2            0.6         


TOP TEN INDUSTRIES                                                              
                        % OF FUND'S    % OF FUND'S
                        INVESTMENTS    INVESTMENTS
                                        6 MONTHS AGO

Finance                                17.9           15.2                      

Durables                               12.0           7.2                       

Technology                             9.2            5.4                       

Basic Industries                       8.4            9.1                       

Nondurables                            7.2            7.1                       

Industrial Machinery & Equipment   6.2            4.7                       

Utilities                              6.1            12.7                      

Energy                                 5.4            3.8                       

Retail & Wholesale                 4.8            5.6                       

Construction & Real Estate         4.6            4.4                       

DIVERSIFIED INTERNATIONAL                                                       
INVESTMENTS APRIL 30, 1994 (UNAUDITED)                                          

Showing Percentage of Total Value of Investment in Securities                   

COMMON STOCKS - 90.1%                                                           
SHARES VALUE (NOTE 1)                                                         
ARGENTINA - 0.8%                                                                
Banco de Galicia Y Buenos Aires SA                                              
sponsored ADR representing Class B                                            
shares  50,000 $ 1,518,750  05953820                                          
Telecom Argentina Stet France  150,000  823,647  90899992                       
YPF Sociedad Anonima sponsored ADR                                              
representing Class D shares  20,000  495,000  98424510                        
2,837,397                                                                   
AUSTRALIA - 4.7%                                                                
Adelaide Brighton Cement Ord.   329,025  388,332  00699692                      
Advance Bank Australia Ltd.   150,000  1,040,761  00699210                      
Alcan Australia Ltd (b)  250,000  366,592  06099G92                             
Australia & New Zealand Banking                                             
Group Ltd. (b)  658,286  2,217,805  05252810                                  
Boral Ltd. Ord.   330,000  856,858  09950910                                    
CSR Ltd.   400,000  1,373,376  12639610                                         
Caltex Australia Ltd.   500,000  1,072,950  13199392                            
Commonwealth Bank of Australia (c)  100,000  587,977  20299492                  
Email Ltd.   230,285  817,026  29099292                                         
Metal Manufactures Ltd.   400,000  1,101,564  60199B92                          
National Australia Bank Ltd.   300,000  2,549,328  63252510                     
Pioneer International Ltd.   100,000  206,006  72371110                         
QBE Insurance Group Ltd. Ord.   100,000  393,415  74799892                      
Santos Ltd. (b)  422,602  1,206,127  80302110                                   
Weston (George) Foods Ltd.   150,000  863,725  96199F22                         
Westpac Banking Corp.   200,000  679,536  96121410                              
Westralian Sands Ltd.   145,700  416,877  96199A22                              
16,138,255                                                                  
AUSTRIA - 0.2%                                                                  
Verbund Gesellschaft  10,000  532,817  92299999                                 
BELGIUM - 0.6%                                                                  
Delhaize  13,000  520,663  24650010                                             
Union Miniere SA (b)  20,000  1,521,704  90707392                               
Union Miniere SA (warrants) (b)  20,000  160,673  90707393                      
2,203,040                                                                   
BRAZIL - 0.6%                                                                   
Telebras PN (Pfd. Reg.)  60,000,000  2,163,428  95499792                        
CANADA - 1.4%                                                                   
Abitibi-Price, Inc.   100,000  1,184,277  00368010                              
Canadian Pacific Ltd. Ord.   100,000  1,609,170  13644030                       
Dreco Energy Services Ltd. Class A (b)  20,000  185,000  26152820               
FCA International Ltd. (b)  173,300  470,005  30290110                          
Germany Fund of Canada Trust  10,000  103,963  37390110                         
Intera Information Technologies Corp.                                           
Class A (b)  24,000  112,823  45837K10                                        
Midland Walwyn, Inc. (b)  150,000  1,193,317  59780110                          
4,858,555                                                                   
FINLAND - 2.9%                                                                  
Cultor OY, Series II Ord. (b)  30,000  795,303  23099093                        
Instrumentarium Class B (b)  63,000  1,681,898  45780510                        
Lassila & Tikahoja OY  14,000  436,483  66899D22                            
Metsa Serla B  20,000  840,109  59299992                                        
Nokia AB free shares  50,000  4,293,888  65599992                               
Repola OY  49,100  872,653  75999A92                                            
Tietotehdas OY B  60,000  1,041,735  93999892                                   
9,962,069                                                                   
FRANCE - 10.3%                                                                  
Alcatel Alsthom CGE  12,000  1,452,810  01390492                                
Assurances Generales (Reg.)  8,000  767,762  04557510                           
Bertrand Faure SA (b)  1,075  108,108  08599392                                 
Bon Marche (AU) SA  15,000  2,134,146  09799492                                 

SHARES VALUE (NOTE 1)                                                         

CGIP  14,000 $ 2,956,875  12506610                                              
Credit Commercial France Ord. (b)  277  1,248  22499398                         
Credit Local De France (c)  15,000  1,100,212  22699892                         
De Dietrich et CIE  6,000  2,969,247  24699293                                  
Eridania Beghin SAY Group Ord. (b)  20,000  3,209,615  07720310                 
Essilor International SA  6,000  780,488  29728599                              
Eurafrance (Societe) (b)  100  36,939  29899892                                 
Europeene de Prop (Sep)  24,455  1,638,113  29899792                            
Finextel  50,000  1,316,719  32299292                                           
Generale des Eaux  32  14,614  37099210                                         
IDIA (Inst. de Devel. des Ind. Agr.)  30,000  1,172,322  45199D22               
Lafarge Coppee  25,000  2,028,102  50586310                                     
Pechiney International  5,400  155,567  71099094                                
Pernod-Ricard  15,000  1,012,725  71404310                                      
Peugeot SA Ord. (b)  10,000  1,581,831  71682510                                
Schneider SA (b)  20,833  1,671,648  80687410                                   
Societe Generale Class A  20,000  2,255,214  83357799                           
Thomson C.S.F.   20,000  602,333  88431610                                      
Total Compagnie Francaise des Petroles                                          
Class B  49,228  2,862,498  20434510                                          
UIC (Union Inds. de Credit) (b)  5,081  389,741  90299E92                       
Vallourec (b)  30,000  1,741,782  92017610                                      
Zodiac SA (b)  3,193  1,256,207  96599492                                       
35,216,866                                                                  
GERMANY - 8.5%                                                                  
Andrea Noris Zahn  10,000  2,318,621  03499892                                  
Bayer AG  20,000  4,761,790  07273010                                           
Colonia Verischerung AG  1,200  983,071  19619991                               
Commerzbank AG  10,000  2,170,496  20259710                                     
Commerzbank (warrants) (b)  300  63,120  20299033                               
Deutsche Babcock AG  20,000  3,230,955  25159991                                
Deutsche Bank AG  13,000  6,140,024  25152592                                   
Herlitz AG  4,000  1,013,301  42799392                                          
Holsten Brauerei AG  2,666  918,755  43899D92                                   
IKB AG (Deutsche Industriebank)  5,600  1,029,262  45999992                     
Karstadt AG   3,000  1,140,871  48576499                                        
Kaufhof AG  2,000  659,008  48615210                                            
New Germany Fund, Inc. (The)  100,000  1,250,000  64446510                      
Pfaff (GM) Ord (b)  8,000  1,257,557  71699592                                  
Rosenthal AG  6,600  1,217,050  77774310                                        
Thyssen AG Ord.   5,000  865,480  88629110                                      
29,019,361                                                                  
HONG KONG - 3.3%                                                                
Cafe de Coral Holdings Ltd.   1,000,000  618,150  12799092                      
Cathay Pacific Airways Ltd.   200,000  289,978  14890610                        
Cheung Kong Ltd.   350,000  1,653,785  16674410                                 
Culturecom Holdings Ltd.   2,000,000  225,260  23099322                         
Dairy Farm International Holdings                                               
Ltd. Ord.   550,000  804,562  23385910                                        
Hang Lung Development Corp.   200,000  344,350  41099310                        
Hong Kong Electric Holdings Ord.   150,000  442,735  43858010                   
Hong Kong Land Holdings Ltd.   200,000  561,834  43858292                       
Hopewell Holdings Ltd.   1,000,000  893,240  44099999                           
Hutchison Whampoa Ltd. Ord.   350,000  1,438,566  44841510                      
Jardine Matheson & Co. Ltd. Ord.   24  157  47111510                        
Lai Sun Garment International Ltd.  300,000  563,130  50699093                  
Mandarin Oriental International Ltd. Ord.   400,000  522,996  56259499          
Shun Tak Holdings Ltd.   685,244  731,841  82799192                             
Sime Darby Hong Kong Ltd.   200,000  321,048  82899392                          
Sing Tao Holdings Ltd.   250,000  343,055  82877099                             
Sun Hung Kai Properties Ltd.   200,500  1,206,940  86676H10                     
Winsor Industrial  300,000  442,737  97551099                                   
11,404,364                                                                  
COMMON STOCKS - CONTINUED                                                       
SHARES VALUE (NOTE 1)                                                         
INDIA - 0.1%                                                                    
Reliance Industries Ltd. GDS (c)  30,000 $ 510,000  75947093                    
INDONESIA - 0.1%                                                                
Bank Dagang Nas Indonesia PT  275,000  401,687  06099Q22                        
IRELAND - 1.0%.                                                                 
Bank of Ireland U.S. Holdings, Inc.   150,000  616,864  06278793                
Crean (James) Ltd. Ord.   100,000  421,130  22699D25                            
Elan PLC ADR  12,400  407,650  28413120                                         
IAWS Group PLC A (U.K. Reg.)  300,000  400,620  45399H23                        
Independent News  192,496  963,972  45399E92                                    
Waterford Foods PLC Class A  300,000  464,355  94199392                         
3,274,591                                                                   
ISRAEL - 0.3%                                                                   
ECI Telecom Ltd.   50,000  1,031,250  26825810                                  
ITALY - 3.6%                                                                    
Fiat Spa  700,000  3,045,924  31562110                                          
SIP Spa  1,376,010  4,117,462  78401792                                         
Stet (Societa Finanziaria Telefonica                                            
Spa) Ord.   1,300,000  5,041,855  85982510                                    
12,205,241                                                                  
JAPAN - 28.0%                                                                   
Aichi Machine Industries  100,000  644,145  02299192                            
Aisin Seiki Co. Ltd.   50,000  595,883  00999999                                
Akita Bank  100,000  718,999  00999692                                          
Aoyama Trading Co. Ord.   16,000  740,668  03799092                             
Aplus Co. Ltd.   150,000  812,568  03899A92                                     
Bandai Co. Ltd. (warrants #3)  400  730,000  06099193                           
Canon, Inc.   100,000  1,625,135  13780199                                      
Dai-Tokyo Fire & Marine Insurance Ord.   150,000  1,152,369  23399210       
Daidoh Ltd.   150,000  1,366,591  56299292                                      
Daiwa Securities  200,000  3,132,080  23499010                                  
Ezaki Glicko Co.   75,000  805,180  30199492                                    
Fuji Oil Co. Ltd.   150,000  1,375,455  35999310                                
Fuji Photo Film Co. Ltd.   50,000  1,078,499  35958610                          
Futaba Corp.   50,000  1,974,786  36399292                                      
Hanshin Department Store  242,000  1,906,824  41199292                          
Hisamitsu Pharmaceutical Co.   70,000  675,662  46699092                        
Hitachi Ltd.   800,000  7,564,264  43357810                                     
Honda Motor Co. Ltd.   100,000  1,654,683  43812810                             
House Food Industrial  55,000  1,159,263  44144610                              
Izumiya Co. Ltd.   100,000  1,881,217  46599310                                 
Kao Corporation  250,000  3,028,662  48599210                                   
Kasumi Stores  80,000  776,126  48599310                                        
Kirin Brewery Co. Ltd.   200,000  2,403,230  49712510                           
Konica Corp.   109,000  719,295  50046M10                                       
Matsushita Electric Industrial Co. Ltd.   400,000  6,579,336  57687910          
Matsuya Denki Co. Ltd.   60,000  596,868  57699890                              
Mitsubishi Heavy Industry  200,000  1,329,656  60699310                         
Nakayama Steel Works Ltd.   100,000  633,310  62999310                          
Nippon Trust Bank Ltd. Ord.   150,000  749,040  66799892                        
Nissei Sangyo  100,000  1,408,451  66699592                                     
Nomura Securities Co. Ltd.   200,000  4,353,394  65536130                       
Ohbayashi Corp.   200,000  1,359,204  67090410                                  
Omron Corp.   100,000  1,585,738  68215110                                      
Pokka Corp.   50,000  822,417  73299999                                         
RICOH Co. Ltd. Ord.   200,000  1,701,960  76565999                              
Renown Look, Inc.   70,000  758,397  75999J22                                   
Royal Co. Ltd.   165,000  2,437,703  77999110                                   
Sekisui Chemical  200,000  2,048,656  81699210                                  
Sekisui House Ltd.   150,000  1,876,293  81607810                               
Shintokogio Ltd.   80,000  619,324  97199392                                    
Sony Corp.   100,000  5,673,200  83569999                                       
TDK Corp.   75,000  3,383,236  87235110                                         

SHARES VALUE (NOTE 1)                                                         

Takasago Thermal Engineering Co.   40,000 $ 618,536  87699892                   
Takeda Chemical Industries Ltd.   300,000  3,545,751  87405810                  
Takuma Co. Ltd.   70,000  1,041,071  87406099                                   
Toenec Corporation.  55,000  666,306  96599592                                  
Tokyo Style Co. Ltd.   150,000  2,733,183  88999410                             
Toshiba Corp.   250,000  1,895,992  89149310                                    
Toyoda Boshoku Corp.   150,000  723,924  89799B92                               
Toyota Motor Corporation  200,000  3,920,024  89399999                          
Yamaha Motor Co. Ltd.   100,000  886,438  98456092                              
Yamatake Honeywell Co. Ltd.   130,000  2,074,264  98491099                      
Zenitaka Corp.   150,000  1,032,699  64099292                                   
95,575,955                                                                  
KOREA (SOUTH) - 0.6%                                                            
Samsung Electronics Co. Ltd.:                                                   
GDR representing common (b) (c)  1,516  69,357  79605060                      
GDS (c).  30,000  1,920,000  79605020                                       
1,989,357                                                                   
LUXEMBOURG - 0.7%                                                               
Minorco SA ADR  120,000  2,385,000  60434020                                    
MEXICO - 0.8%                                                                   
Banacci SA de CV Class C  40,000  271,363  06399893                             
Cemex SA, Series B  50,000  1,084,226  15299293                                 
Groupo Televisa GDS (c)  10,000  528,125  40049J20                              
Grupo Carso SA de CV Class A-1  50,000  498,468  40099594                       
Grupo Financiero Bancomer SA de CV                                              
sponsored ADR, Series C (c)  20,000  492,500  40048610                        
2,874,682                                                                   
NETHERLANDS - 3.3%                                                              
Akzo NV Ord.   7,000  843,469  01019910                                         
Borsumij Wehry NV  5,100  448,327  09985610                                     
International Nederlanden Groep CVA  15,000  626,986  46099892                  
MacIntosh Confectionary Works  12,600  415,362  58199292                        
Philips Electronics  55,000  1,608,672  71833799                                
Pirelli Tyre Holdings NV Ord.   38,700  385,645  72499092                       
Royal Dutch Petroleum Co.   40,000  4,360,000  78025770                         
Telegraaf CVA  15,000  1,325,074  87940410                                      
Twentsche Kabel Holding NV  10,000  1,104,228  91030099                         
Volmac Software Groep NV  27,700  337,204  92899292                             
11,454,967                                                                  
NETHERLANDS ANTILLES - 0.1%                                                     
Intrum Justitia NV (Reg.)  160,000  262,224  46299292                           
NEW ZEALAND - 0.8%                                                              
Brierley Investments Ltd.   2,578,459  1,950,321  10901410                      
Fletcher Challenge Ltd. (Reg.)  350,000  681,044  33999592                      
Wrightson Ltd.   100,000  59,472  98299322                                      
2,690,837                                                                   
NORWAY - 2.2%                                                                   
Bergesen Group Class A  50,000  1,109,390  08399010                             
Bonheur AS  14,000  275,464  09799399                                           
Color Lines  130,815  529,386  19699492                                         
Ganger Rolf  14,000  271,556  36472010                                          
Helikopter Services  15,000  192,573  42499192                                  
Norsk Hydro AS ADR (b)  15,000  508,125  65653160                               
Orkla AS Class B (non-vtg.)  20,000  633,538  39299192                          
Saga Petroleum AS B  100,000  1,102,413  84099794                               
Smedvig Tankships Ltd. Ord. (c)  40,000  365,000  83169E20                      
Unitor AS  60,500  1,207,282  91699392                                          
Wilrig AS   310,800  1,236,070  97199092                                        
7,430,797                                                                   
COMMON STOCKS - CONTINUED                                                       
SHARES VALUE (NOTE 1)                                                         
PANAMA - 0.1%                                                                   
Banco Latino Americano de Exportaciones                                         
SA Class E  10,000 $ 380,000  06199A92                                        
PHILIPPINES - 0.3%                                                              
First Philippine Fund  50,000  893,750  33610010                                
PORTUGAL - 0.1%                                                                 
Banco Portuguese Invest. SA:                                                    
(Reg.)  10,500  208,581  05999G93                                             
(New)  1,400  27,811  05999G95                                                
236,392                                                                     
SINGAPORE - 0.2%                                                                
Hour Glass Ltd.   732,500  819,697  44199E22                                    
SOUTH AFRICA - 0.2%                                                             
Rustenberg Platinum Holding Ltd. ADR  35,000  621,250  78307820                 
SPAIN - 2.7%                                                                    
Argentaria Corp. Bancaria de ESP  4,200  182,507  21991392                      
Banco de Andalucia (Reg.)  2,000  226,555  08599193                             
Banco Popular Espanol  2,500  290,808  05999110                                 
Corporacion Bancaria de Espana SA                                               
sponsored ADR  60,000  1,305,000  21991310                                    
Electric Zaragosa  7,500  207,242  29599192                                     
Electricas Reunidas Zaragoza (New)  1,875  50,877  29599194                     
Growth Fund of Spain, Inc.   150,000  1,518,750  39987710                       
Hidro Cantabrico  40,000  1,244,940  42899999                                   
Iberdrola SA  26,000  186,756  45499892                                         
Repsol SA sponsored ADR  73,900  2,438,700  76026T20                            
Telefonica de Espana SA sponsored ADR  35,000  1,426,250  87938220              
9,078,385                                                                   
SWEDEN - 0.6%                                                                   
Astra A Free  20,500  425,227  04632292                                         
Frontline  114,000  306,809  35999F22                                           
Mo Och Domsjoe (Modo) AB   20,000  787,701  61399792                            
SKF AB Ord.   5,300  109,241  78437530                                          
Svenska Handelsbanken  30,000  464,744  86959991                                
2,093,722                                                                   
SWITZERLAND - 3.7%                                                              
Also Holding AG (Reg.)  6,000  1,069,023  02199F93                              
Bank of International Settlements  100  762,570  06299B22                       
Bucher Holding AG (Bearer)  400  1,356,947  08699292                            
Ciba-Geigy AG (Reg.)  320  190,885  17199492                                    
Ciba Geigy Corp. (warrants) (b)  120  855  17199494                             
George Fischer AG (Bearer) (b)  700  743,328  33771110                          
Industrieholding Cham AG (Reg.)  1,200  966,397  85599922                       
Nestle SA (Reg.)  1,000  835,976  64106992                                      
Oerlikon-Buhrle Holding Ltd. (Reg.) (b)  10,000  1,069,023  67199092            
Pelikan Holdings AG  5,000  447,208  70599A22                                   
Prodega AG (Bearer).  1,000  1,211,560  74599992                                
Roche Holdings Ltd. Part. Cert.  200  957,845  77157092                         
Sandoz PC  100  264,405  80005220                                               
Sulzer Gebrueder PC  1,000  709,831  86557799                                   
Swiss Reinsurance Corp.:                                                        
(Reg.) (b)  1,100  468,802  87099393                                          
A (warrants) (b)  1,000  3,385  87099D22                                      
B (warrants) (b)  1,000  3,920  87099399                                      
Winterthur Schweiz (Bearer) (b)  1,000  484,624  97629993                       
Zurich Versicherungs (Bearer)  1,000  930,050  99499592                         
12,476,634                                                                  
THAILAND - 0.1%                                                                 
Thai Euro Fund IDR  10  270,000                                                 
UNITED KINGDOM - 7.2%                                                           
Allied Lyons PLC (b)  90,000  801,696  01925510                                 
Amstrad  600,000  291,360  03299110                                             

SHARES VALUE (NOTE 1)                                                         

Associated British Foods Ltd. Ord. (b).  150,000 $ 1,358,922  04551910          
B.A.T. Industries PLC Ord. .  90,000  640,537  05527010                         
British Petroleum PLC:                                                          
ADR  20,000  1,400,000  11088940                                              
Ord.   3  18  11088910                                                        
British Telecommunications PLC Ord.  100,000  559,958  11102110                 
Cater Allen Holdings PLC  200,000  1,714,776  14899192                          
Cattles Holdings  333,917  749,944  14999B22                                    
Clinton Cards PLC  100,000  235,213  18799292                                   
East Midland Electricity PLC  70,000  590,080  27365394                         
Finlay (James) PLC  200,000  242,800  31799F92                                  
Guinness PLC Ord.   100,000  727,641  40203310                                  
Imperial Chemical Industries Ord.   110,000  1,370,455  45270440                
Invesco Mim PLC  500,000  1,244,350  46199C92                                   
Lilley PLC  300,000  17,073  53299692                                           
Lloyds Chemists PLC  122,352  616,422  54099092                                 
London & Manchester Group PLC  200,000  1,083,496  54190099                 
London International Group  300,000  478,014  54183310                          
Lonrho Ltd. Ord.   155,067  331,794  54337410                                   
Manweb PLC  80,000  805,489  56508495                                           
Northern Electricity PLC  50,000  469,666  68499B92                             
Norweb PLC  50,000  481,047  66934493                                           
Peninsular & Oriental Steam                                                 
Navigation Co.   100,000  1,077,425  70719030                                 
Royale Insurance Co. Ltd.   305,084  1,217,599  78074910                        
Scottish Metro Property PLC  100,000  147,198  80999292                         
Seeboard PLC  90,000  421,334  81570594                                         
SmithKline Beecham PLC ADR  50,000  1,362,500  83237840                         
South Wales Electricity PLC  45,000  435,674  84060794                          
Standard Chartered Bank  45,461  689,871  85256810                              
Tesco PLC Ord.   44,939  143,209  88157510                                      
Vodafone Group PLC  81,648  673,401  92857T92                                   
Vsel Consortium PLC  40,000  603,965  91828599                                  
Watmoughs (Holdings) PLC  230,000  1,588,065  95599492                          
24,570,992                                                                  
TOTAL COMMON STOCKS                                                             
(Cost $283,063,996)   307,863,562                                             
NONCONVERTIBLE PREFERRED STOCKS - 2.4%                                          
AUSTRIA - 0.3%                                                                  
Creditanstaldt Bank  17,000  999,441  22539210                                  
BELGIUM - 0.2%                                                                  
Cockerill Sambre SA   100,000  560,011  19199392                                
CANADA - 0.6%                                                                   
Trilon Financial Corp. Class 1, Series A  192,200  2,154,552  89590330          
GERMANY - 0.5%                                                                  
Hornback Holdings AG  500  498,791  44050799                                    
Wella AG  2,000  1,076,179  94599999                                            
1,574,970                                                                   
ITALY - 0.8%                                                                    
Fiat Spa Privilege   1,000,000  2,784,210  31562120                             
TOTAL NONCONVERTIBLE PREFERRED STOCKS                                           
(Cost $6,262,232)   8,073,184                                                 
CORPORATE BONDS - 0.5%                                                          
MOODY'S PRINCIPAL VALUE (NOTE 1)                                              
RATINGS (D) AMOUNT (A)                                                        
CONVERTIBLE BONDS - 0.4%                                                        
CANADA - 0.4%                                                                   
Brascan Ltd. 7%, 10/15/02 - CAD 2,000,000 $ 1,403,052  105502AA                 
NONCONVERTIBLE BONDS - 0.1%                                                     
CANADA - 0.1%                                                                   
Stelco, Inc. 10 7/8%, 9/15/94 - CAD 500,000  361,612  8585258Y                  
TOTAL CORPORATE BONDS                                                           
(Cost $1,606,578)   1,764,664                                                 
REPURCHASE AGREEMENTS - 7.0%                                                    
MATURITY                                                                      
AMOUNT                                                                        
Investments in repurchase agreements                                            
(U.S. Treasury obligations), in a                                             
joint trading account at 3.56%                                                
dated 4/29/94 due 5/2/94  $ 24,076,141  24,069,000                            
TOTAL INVESTMENT IN SECURITIES - 100%                                           
(Cost $315,001,806)  $ 341,770,410                                            
FORWARD FOREIGN CURRENCY CONTRACTS                                              
SETTLEMENT  UNREALIZED                                                      
DATE(S) VALUE GAIN/(LOSS)                                                   
CONTRACTS TO BUY                                                                
28,861,200 DEM 5/13/94 $ 17,437,090 $ 157,004                                 
(Payable amount $17,280,086)                                                    
THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF TOTAL INVESTMENT IN            
SECURITIES -  5.1%                                                              
CONTRACTS TO SELL                                                               
28,861,200 DEM 5/13/94 $ 17,437,091 $ (880,643)                               
2,678,400,000 JPY 7/11/94  26,490,223  (661,872)                              
TOTAL CONTRACTS TO SELL                                                         
(Receivable amount $42,384,799) $ 43,927,314 $ (1,542,515)                      
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF TOTAL INVESTMENT IN           
SECURITIES -- 12.9%                                                             
CURRENCY ABBREVIATIONS                                                          
CAD - Canadian dollar                                                           
DEM - German Deutsche mark                                                      
JPY - Japanese yen                                                              
LEGEND                                                                          
1. Principal amount is stated in United States dollars unless otherwise         
noted.                                                                          
2. Non-income producing                                                         
3. 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 $5,573,171 or 1.7% of net        
assets.                                                                         
4. Standard & Poor's Corporation credit ratings are used in the absence     
of a rating by Moody's Investors Service, Inc.                                  
OTHER INFORMATION                                                               
Purchases and sales of securities, other than short-term securities,            
aggregated $196,010,859 and $125,285,532, 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 $7,120 for the period (see Note 4 of Notes to Financial              
Statements).                                                                    
The fund participated in the bank borrowing program. The maximum loan and       
the average daily loan balances during the period for which loans were          
outstanding amounted to $3,190,000. The weighted average interest rate was      
4.19%. Interest expense includes $1,113 paid under the bank borrowing           
program (see Note 5 of Notes to Financial Statements).                          
INCOME TAX INFORMATION                                                          
At April 30, 1994, the aggregate cost of investment securities for income       
tax purposes was $315,011,018. Net unrealized appreciation  aggregated          
$26,759,392, of which $37,571,590 related to appreciated investment             
securities and $10,812,198 related to depreciated investment securities.        

INDUSTRY DIVERSIFICATION                                                        
As a Percentage of Total Value of Investments                                   
Aerospace & Defense    1.2%                                                 
Basic Industries    8.4                                                         
Conglomerates   0.4                                                             
Construction & Real Estate   4.6                                            
Durables    12.0                                                                
Energy   5.4                                                                    
Finance   17.9                                                                  
Health   3.7                                                                    
Industrial Machinery & Equipment   6.2                                      
Media & Leisure   2.7                                                       
Nondurables   7.2                                                               
Repurchase Agreements   7.0                                                     
Retail & Wholesale   4.8                                                    
Services    1.2                                                                 
Technology   9.2                                                                
Transportation   2.0                                                            
Utilities   6.1                                                                 
100.0%                                                                  
DIVERSIFIED INTERNATIONAL                                                       
FINANCIAL STATEMENTS                                                            

STATEMENT OF ASSETS AND LIABILITIES                                             

                                                                · Download Table

                                                                   
                                                                   
 APRIL 30, 1994 (UNAUDITED)                                        

ASSETS                                                             
Investment in securities, at value (including repurchase agreements
of $24,069,000) (cost $315,001,806)$ 341,770,410                   
(Notes 1 and 2) - See accompanying schedule                        
Long foreign currency contracts held, at value                     
(cost $17,280,086) (Note 2)                                        
Short foreign currency contracts                                   
$ (43,927,314                                                      
(Note 2))                                                          
Contracts held, at value                                           
Receivable for contracts held                                      
42,384,799      (1,542,515)                                        

Cash                                                               
525                                                                
Receivable for investments sold                                    
2,494,040                                                          
Receivable for fund shares sold                                    
2,779,003                                                          
Dividends receivable                                               
992,722                                                            
Interest receivable                                                
20,671                                                             
Other receivables                                                  
14,259                                                             
 TOTAL ASSETS                                                      
363,966,205                                                        
LIABILITIES                                                        
Payable for foreign currency contracts held (Note 2)               
17,280,086                                                         
Payable for investments purchased                                  
11,476,381                                                         
Payable for fund shares redeemed                                   
1,057,187                                                          
Accrued management fee                                             
188,610                                                            
Other payables and accrued expenses                                
220,826                                                            
TOTAL LIABILITIES                                                  
30,223,090                                                         
NET ASSETS                                                         
$ 333,743,115                                                      
Net Assets consist of (Note 1):                                    
Paid in capital                                                    
$ 297,582,542                                                      
Undistributed net investment income                                
100,732                                                            
Accumulated undistributed net realized gain (loss) on investments  
10,676,748                                                         
Net unrealized appreciation (depreciation) on:                     
Investment securities                                              
26,768,604                                                         
Foreign currency contracts                                         
(1,385,511)                                                        

NET ASSETS, for 27,683,717 shares outstanding                      
$ 333,743,115                                                      
NET ASSET VALUE, offering price and redemption price per share     
($333,743,115 (divided by) 27,683,717 shares) (Note 4)             


STATEMENT OF OPERATIONS                                                         

                                                        · Enlarge/Download Table

                                                                                             
 SIX MONTHS ENDED APRIL 30, 1994 (UNAUDITED)                                                 

INVESTMENT INCOME                                                                $ 2,318,427 
Dividends                                                                                    

Interest                                                                          589,910    

                                                                                  2,908,337  

Less foreign taxes withheld (Note 1)                                              (383,419   
                                                                                 )           

 TOTAL INCOME                                                                     2,524,918  

EXPENSES                                                                                     

Management fee (Note 4)                                             $ 1,096,161              
Basic fee                                                                                    

 Performance adjustment                                              (39,158                 
                                                                    )                        

Transfer agent fees (Note 4)                                         558,328                 

Accounting fees and expenses                                         86,359                  
(Note 4)                                                                                     

Non-interested trustees' compensation                                835                     

Custodian fees and expenses                                          126,385                 

Registration fees                                                    59,597                  

Audit                                                                14,062                  

Legal                                                                1,857                   

Interest (Note 5)                                                    1,113                   

Miscellaneous                                                        1,135                   

 TOTAL EXPENSES                                                                   1,906,674  

NET INVESTMENT INCOME                                                             618,244    

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTES 1 AND 2)                           
Net realized gain (loss) on:                                                                 

 Investment securities                                               10,988,477              

 Foreign currency contracts                                          (384,348     10,604,129 
                                                                    )                        

Change in net unrealized appreciation (depreciation) on:                                     

 Investment securities                                               6,387,312               

 Foreign currency contracts                                          (1,385,511   5,001,801  
                                                                    )                        

NET GAIN (LOSS)                                                                   15,605,930 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS                  $ 16,224,174

OTHER INFORMATION                                                                 $86,301    
 Accounting fees paid to  FSC                                                                
 (Note 4)                                                                                    


STATEMENT OF CHANGES IN NET ASSETS                                              

                                                                · Download Table

                                                                        
                                                                        
INCREASE (DECREASE) IN NET ASSETS                                       
SIX MONTHS         YEAR ENDED                                           
ENDED APRIL 30,    OCTOBER 31,                                          
1994               1993                                                 
(UNAUDITED)                                                             
Operations                                                              
$ 618,244          $ 998,691                                            
Net investment income                                                   
Net realized gain (loss) on investments                                 
10,604,129         2,534,162                                            
Change in net unrealized appreciation (depreciation) on investments     
5,001,801          24,127,201                                           
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS         
16,224,174         27,660,054                                           
Distributions to shareholders                                           
(212,611           (425,331                                             
From net investment income                                              
)                  )                                                    
From net realized gain                                                  
(2,126,206         -                                                    
)                                                                       
TOTAL  DISTRIBUTIONS                                                    
(2,338,817         (425,331                                             
)                  )                                                    
Share transactions                                                      
289,940,150        368,965,606                                          
Net proceeds from sales of shares                                       
Reinvestment of distributions                                           
2,282,423          411,649                                              
Cost of shares redeemed                                                 
(227,393,669       (178,021,677                                         
)                  )                                                    
Net increase (decrease) in net assets resulting from share transactions 
64,828,904         191,355,578                                          
TOTAL INCREASE (DECREASE) IN NET ASSETS                                 
78,714,261         218,590,301                                          
NET ASSETS                                                              
Beginning of period                                                     
255,028,854        36,438,553                                           
End of period (including undistributed net investment income of         
$100,732 and $893,244, respectively)    $ 333,743,115      $ 255,028,854
OTHER INFORMATION                                                       
Shares                                                                  
Sold                                                                    
24,297,825         35,207,206                                           
Issued in reinvestment of distributions                                 
201,262            48,543                                               
Redeemed(19,352,953      (17,022,973                                    
)                  )                                                    
Net increase (decrease)                                                 
5,146,134          18,232,776                                           
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.


FINANCIAL HIGHLIGHTS                                                            

                                                                · Download Table

                                                                     
                                                                     
           SIX MONTHS         YEAR ENDED    DECEMBER 27, 1991        
           ENDED APRIL 30,    OCTOBER 31,   (COMMENCEMENT            
           1994               1993          OF OPERATIONS) TO        
           (UNAUDITED)                      OCTOBER 31, 1992         

SELECTED PER-SHARE DATA                                              
Net asset value, beginning of period                                 
           $ 11.32            $ 8.46        $ 10.00                  
Income from Investment Operations                                    
Net investment income                                                
            .03                .07           .07                     
Net realized and unrealized gain (loss) on investments               
            .82                2.89          (1.61)                  
Total from investment operations                                     
            .85                2.96          (1.54)                  
Less Distributions                                                   
From net investment income                                           
            (.01)              (.10)         -                       
From net realized gain                                               
            (.10)              -             -                       
Total distributions                                                  
            (.11)              (.10)         -                       
Net asset value, end of period                                       
           $ 12.06            $ 11.32       $ 8.46                   
TOTAL RETURN (dagger)(diamond)                                       
            7.57%              35.38%        (15.40)%                
RATIOS AND SUPPLEMENTAL DATA                                         
Net assets, end of period (000 omitted)                              
           $ 333,743          $ 255,029     $ 36,439                 
Ratio of expenses to average net assets                              
            1.36%*             1.47%         2.00%*                  
Ratio of expenses to average net assets before expense reductions    
            1.36%*             1.47%         2.34%*                  
Ratio of net investment income to average net assets                 
            .44%*              .84%          1.38%*                  
Portfolio turnover rate                                              
            99%*               56%           56%*                    
* ANNUALIZED                                                         
(dagger) TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT     
ANNUALIZED.                                                          
(diamond)THE TOTAL RETURNS WOULD HAVE BEEN                           
LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN.

INTERNATIONAL GROWTH & INCOME                                               
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). International        
Growth & Income had a 2% sales charge, which was waived through May 31,     
1994. The sales charge was eliminated effective June 1, 1994.                   
CUMULATIVE TOTAL RETURNS                                                        
PERIODS ENDED                PAST 6   PAST 1   PAST 5   LIFE OF                 
APRIL 30, 1994               MONTHS   YEAR     YEARS    FUND                    

INTERNATIONAL GROWTH &                                                      
INCOME                      1.63%    13.91%   53.91%   94.84%                 

INTERNATIONAL GROWTH &                                                      
INCOME (INCL. 2% SALES                                                        
CHARGE)                     -0.40%   11.63%   50.83%   90.95%                 

Morgan Stanley EAFE                                                             
Index                       5.57%    16.64%   17.76%   91.02%                 

JP Morgan Global Bond                                                           
Index                       -0.43%   4.35%    61.25%   91.97%                 

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms        
over a set period - in this case, six months, one year, five years, or          
since the fund started on December 31, 1986. You can compare the fund's         
figures to the performance of the Morgan Stanley EAFE index - a broad           
measure of the performance of stocks in Europe, Australia, and the Far          
East. You can also compare the fund's performance to the JP Morgan Global       
Traded Government Bond Index - a broad measure of bond performance in           
developed countries, including the United States. These benchmarks include      
reinvested dividends and capital gains, if any, and exclude the effects of      
sales charges.                                                                  
AVERAGE ANNUAL TOTAL RETURNS                                                    
PERIODS ENDED                PAST 1   PAST 5   LIFE OF                          
APRIL 30, 1994               YEAR     YEARS    FUND                             

INTERNATIONAL GROWTH &                                                      
INCOME                      13.91%   9.01%    9.52%                           

INTERNATIONAL GROWTH &                                                      
INCOME (INCL. 2% SALES                                                        
CHARGE)                     11.63%   8.57%    9.22%                           

Morgan Stanley EAFE Index    16.64%   3.32%    9.22%                            

JP Morgan Global Bond                                                           
Index                       4.35%    10.03%   9.30%                           

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return      
and show you what would have happened if the fund had performed at a            
constant rate each year.                                                        
$10,000 OVER LIFE OF FUND                                                       
  Int'l Growth & Income (305)       MS EAFE JP MORGAN GLOBAL
BOND                                                                            
12/31/86                     9800.00      10000.00              10000.00      
01/31/87                    10456.60      11091.44              10257.00      
02/28/87                    10917.20      11423.38              10377.01      
03/31/87                    11387.60      12359.45              10565.87      
04/30/87                    11828.60      13667.22              10575.38      
05/31/87                    11907.00      13667.17              10475.97      
06/30/87                    12024.45      13231.74              10430.92      
07/31/87                    12525.06      13208.62              10305.75      
08/31/87                    12868.62      14199.03              10418.08      
09/30/87                    12976.78      13975.49              10164.92      
10/31/87                    10259.33      11956.28              10730.09      
11/30/87                     9993.50      12135.62              11008.00      
12/31/87                    10616.00      12495.97              11382.28      
01/31/88                    10240.74      12719.07              11440.33      
02/29/88                    10704.88      13566.88              11545.58      
03/31/88                    11169.02      14401.06              11636.79      
04/30/88                    11465.28      14610.33              11582.09      
05/31/88                    11317.15      14141.98              11457.01      
06/30/88                    11188.77      13769.22              11355.04      
07/31/88                    11188.77      14201.21              11266.47      
08/31/88                    10635.75      13277.87              11186.48      
09/30/88                    11020.89      13858.05              11465.02      
10/31/88                    11662.79      15043.77              11916.74      
11/30/88                    11870.17      15939.87              12021.61      
12/31/88                    11843.61      16028.75              11949.48      
01/31/89                    12064.61      16310.76              11831.18      
02/28/89                    12104.79      16394.60              11812.25      
03/31/89                    12104.79      16072.84              11711.85      
04/30/89                    12406.16      16221.91              11905.09      
05/31/89                    12054.56      15339.38              11776.52      
06/30/89                    12094.75      15081.17              12043.84      
07/31/89                    13239.93      16974.95              12523.19      
08/31/89                    13059.11      16211.52              12152.50      
09/30/89                    13581.48      16949.99              12344.51      
10/31/89                    12928.52      16268.98              12503.76      
11/30/89                    13410.70      17086.82              12615.04      
12/31/89                    14108.24      17717.27              12762.64      
01/31/90                    13864.30      17058.04              12572.47      
02/28/90                    13376.40      15867.48              12436.69      
03/31/90                    13366.24      14214.47              12360.83      
04/30/90                    13335.75      14101.66              12312.62      
05/31/90                    14199.72      15710.68              12706.62      
06/30/90                    14646.96      15572.31              12936.61      
07/31/90                    15327.98      15791.65              13316.95      
08/31/90                    14016.76      14258.15              13213.08      
09/30/90                    12664.89      12271.07              13337.28      
10/31/90                    13935.45      14183.13              13864.10      
11/30/90                    13620.35      13346.50              14108.11      
12/31/90                    13652.87      13562.71              14264.71      
01/31/91                    14135.97      14001.39              14588.52      
02/28/91                    14934.14      15502.33              14603.11      
03/31/91                    14398.53      14571.68              14147.49      
04/30/91                    14619.08      14714.78              14318.68      
05/31/91                    14598.07      14868.32              14331.56      
06/30/91                    13894.42      13775.78              14139.52      
07/31/91                    14377.53      14452.61              14437.86      
08/31/91                    14325.01      14159.11              14738.17      
09/30/91                    14787.11      14957.10              15276.12      
10/31/91                    14692.59      15169.13              15427.35      
11/30/91                    14283.01      14460.97              15678.81      
12/31/91                    14750.27      15207.78              16470.59      
01/31/92                    14729.00      14882.94              16147.77      
02/29/92                    14750.27      14350.25              16100.94      
03/31/92                    14271.71      13402.90              15952.81      
04/30/92                    14899.16      13466.61              16085.22      
05/31/92                    15569.14      14368.01              16542.04      
06/30/92                    15420.26      13686.50              16993.64      
07/31/92                    14920.43      13336.22              17367.50      
08/31/92                    15186.29      14172.68              17829.48      
09/30/92                    14931.06      13892.81              17811.65      
10/31/92                    14133.46      13164.07              17366.36      
11/30/92                    14101.56      13287.94              17058.97      
12/31/92                    14257.48      13356.67              17221.03      
01/31/93                    14388.19      13355.03              17513.79      
02/28/93                    14780.29      13758.44              17795.76      
03/31/93                    15880.38      14957.71              18069.82      
04/30/93                    16762.62      16377.23              18398.69      
05/31/93                    17154.73      16723.11              18516.44      
06/30/93                    16926.00      16462.20              18531.25      
07/31/93                    17492.38      17038.46              18538.66      
08/31/93                    18407.29      17958.25              19087.41      
09/30/93                    18287.48      17554.02              19289.73      
10/31/93                    18788.51      18094.99              19280.09      
11/30/93                    18145.89      16513.30              19139.34      
12/31/93                    19259.02      17705.68              19334.57      
01/31/94                    20267.46      19202.61              19516.31      
02/28/94                    19905.74      19149.42              19301.63      
03/31/94                    18842.49      18324.63              19212.84      
04/30/94                    19094.60      19102.13              19197.47      

Let's say you invested $10,000 in Fidelity International Growth &           
Income Fund on its start date and paid the 2% sales charge. By April 30,        
1994, it would have grown to $19,095 - a 90.95% increase on your initial        
investment. That compares to $10,000 invested in the Morgan Stanley EAFE        
index, which would have grown to $19,102 over the same period - an 91.02%       
increase. If you had put $10,000 in the J.P. Morgan Global Bond index, it       
would have grown to $19,197 - a 91.97% increase.                                

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.                                  
(checkmark)                                                                     
INTERNATIONAL GROWTH & INCOME                                               
FUND TALK: THE MANAGER'S OVERVIEW                                               

An interview with Richard Mace,                                                 
Portfolio Manager of Fidelity International Growth &                        
Income Fund                                                                     
Q. RICK, HOW DID THE FUND DO?                                                   
A. The fund had a total return of 1.63% for the six months ended April 30,      
1994. Because no index tracks the performance of both international stocks      
and bonds (the fund must keep at least 25% in fixed-income investments),        
the best available way to evaluate performance is to look at two indices.       
During the same six-month period, the EAFE index - a broad measure of the       
performance of stocks (only) in Europe, Australia and the Far East - was up     
5.57%. The total return of the JP Morgan Global Traded Government Bond          
Index was -0.43%. For the 12 months ended April 30, the fund returned           
13.91%, the EAFE index rose 16.64%, and the global bond index was up 4.35%.     
Because the fund invests in both stocks and bonds, its performance most         
often should fall between those of the two indices. Comparing the fund's        
returns to those of its peers is even more difficult. Lipper Analytical         
Services - which tracks mutual fund performance - doesn't have a category       
that compares the returns of funds that share the same investing objectives     
as International Growth & Income.                                           
Q. FROM THOSE NUMBERS, IT APPEARS AS IF FOREIGN BONDS HAVE UNDERPERFORMED       
FOREIGN STOCKS OVER THE PAST SIX MONTHS . . .                                   
A. That's true. Shortly after I took over the fund in January, I increased      
the fund's bond investments in a variety of markets - including Argentina,      
France and Italy - for two reasons. First, one of my priorities going           
forward is to increase the fund's yield; I would like to boost the "income"     
half of the fund's title. Second, stock valuations - prices relative to         
other measures such as earnings - in many of the world markets were very        
high. I felt bonds offered better value at the time. Turned out, I was a        
couple of months too early. In early February, the Federal Reserve Board        
raised U.S. short-term interest rates for the first time in five years.         
This triggered a sharp sell-off in bond markets around the world. Even          
though underlying economic conditions still appeared favorable for bond         
investors in emerging markets such as Argentina, these markets were hit the     
hardest.                                                                        
Q. NOW THAT BOND PRICES HAVE FALLEN, ARE YOU FINDING BETTER VALUE?              
A. Definitely, which is why I've continued to increase the fund's stake in      
bonds. They made up 29.3% of the fund at the end of April compared to 8.7%      
on October 31. Bond yields have risen so dramatically in Argentina that         
"spreads," or the differences in yield between Argentine and U.S. bonds of      
comparable maturities, are near historic highs. Plus, the country appears       
to be politically stable, and inflation is low. Though bond prices in           
France haven't fallen as far, they too offer good value. It's like going        
into a store one day and finding an item that you know is worth a dollar,       
on sale for 80 cents. If you go into the store the next day and that same       
item is selling for 60 cents, it's an even better deal, and you might as        
well buy even more.                                                             
Q. THE FUND'S INVESTMENT IN JAPAN HAS INCREASED FROM 14.9% AT THE END OF        
OCTOBER TO 37.5% ON APRIL 30. WHY?                                              
A. I began increasing the fund's stake in Japanese stocks right off the bat     
in January. Japan's market fell last fall amid political and economic           
turmoil. As a result, stocks there offer some of the most attractive            
valuations in the world. But not just any Japanese stocks. I began              
targeting some of Japan's biggest exporters: auto makers Honda, Nissan and      
Toyota; and electronics and entertainment companies such as Hitachi,            
Matsushita, Sony and TDK. What these companies have in common is effective      
cost cutting, little or no debt, and very low stock valuations. The bet on      
their future performance centers around continued cost-cutting and              
movements in the value of the yen.                                              
Q. WHICH AFFECTS THE PRICE OF JAPANESE EXPORTS . . .                            
A. Exactly. In 1993 and so far this year, a strengthening yen has made          
Japan's exports more expensive - therefore less attractive - in other           
countries. That, in turn, made Japanese companies less competitive. But the     
yen has been especially strong, which means it should soon begin moving         
back toward a fairer value. And because they've effectively cut costs,          
these companies should see a healthy boost in earnings when the yen begins      
to weaken. The prices of some of these stocks have already risen since the      
beginning of the year, and I like their future prospects.                       
Q. WHERE ELSE DID YOU FIND OPPORTUNITIES ON THE STOCK SIDE?                     
A. As some European economies have begun to recover, cyclical stocks -          
those that tend to rise and fall in step with the economy - have performed      
well. Chemical companies, in particular, are beginning to gain the ability      
to raise prices while sustaining earnings growth. Examples include DSM and      
Akzo Nobel in the Netherlands, and Bayer and Hoechst in Germany. In             
addition, German tire maker Continental and auto maker BMW, as well as          
Italian auto maker Fiat, have seen an improvement in business.                  
Q. SINCE TAKING OVER THE FUND, YOU'VE INCREASED THE AMOUNT OF THE FUND'S        
INVESTMENTS THAT ARE HEDGED WITH FOREIGN CURRENCY CONTRACTS. WHY?               
A. I hedged the fund's increasing investment in Japanese stocks because I       
was concerned that potential gains in these stocks might, in part, be           
negated by the effects of a falling yen. In addition, a substantial portion     
of the hedging was tied to the fund's growing investment in foreign bonds.      
Hedging is designed to reduce currency risk, or the risk that the fund's        
investments will be worth less because of movements in the currency of the      
country where the investment is made. For instance, if I'm buying French        
bonds, I'll pay for the purchase in French francs. Then, to hedge the           
investment, I'll enter into a forward currency contract that converts my        
French investment into U.S. dollars. Often, the higher yields available         
from these hedged investments offset the cost of the hedging (the currency      
contracts). However, if the dollar moves the wrong way, that hedging cost       
can decrease the fund's short-term returns.                                     
Q. IS THAT WHAT HAPPENED RECENTLY?                                              
A. Yes. I expected the dollar to strengthen as U.S. interest rates went up.     
But as rates went up, the rest of the world pushed up rates too, which          
weakened the dollar in foreign markets. However, I still had roughly 40% of     
the fund's foreign investments hedged at the end of April. I believe            
changing dynamics between the dollar and other world currencies should make     
hedging more worthwhile in the months ahead.                                    
Q. SPEAKING OF THE FUTURE, WHAT'S YOUR VIEW OF THE NEXT SIX MONTHS?             
A. I remain very positive on the fund's bond investments and on its sizable     
stake in Japan. Even though many of the fund's Japanese stocks have risen       
already, I believe their best days lie ahead. I'm not too optimistic about      
other world stock markets in general, because they're still expensive. Yet      
I'm very optimistic about the stocks that the fund owns within these            
markets. That said, within a six-month period, plenty of unknowns can alter     
the best laid plan. But I believe the fund is well positioned for long-term     
growth, and hopefully an increase in income.                                    

FUND FACTS                                                                      
GOAL: to increase the value of the fund's                                       
shares by investing in stocks and bonds,                                        
mainly in Europe, the Far East and Pacific                                      
Basin                                                                           
START DATE: December 31, 1986                                                   
SIZE: as of April 30, 1994, more than $1.4 billion                              
MANAGER: Richard Mace, since January 1994;                                      
co-manager, Fidelity Global Balanced Fund,                                      
February 1993-December 1993; Fidelity                                           
Select Chemicals and Industrial Materials                                       
Portfolios, January 1992-August 1992;                                           
Fidelity Select Transportation Portfolio, June                                  
1989-December 1991; joined Fidelity in 1987                                     
(checkmark)                                                                     
RICK MACE ON THE FUND'S SHIFTING STRATEGY:                                      
"One of my keys to stock selection is valuation -- a                            
stock's price relative to other measures such as                                
earnings. Shortly after taking over the fund in                                 
January, I sold nearly all of its investment in                                 
emerging markets such as Hong Kong, Malaysia                                    
and Singapore. Why? Because stock valuations                                    
were extremely high by historic standards and                                   
relative to other companies with similar prospects                              
elsewhere in the world. Many of the companies in                                
these markets are among the fastest growing in the                              
world. In 1993, however, stock prices in emerging                               
markets rose much faster than company earnings.                                 
And in fact, most of these markets suffered steep                               
corrections early in 1994. I'll continue to keep my                             
eye on these markets, and if valuations become                                  
attractive again, I'll be tempted to move back in.                              
"By the end of 1993, Japanese stock prices, on the                              
other hand, had fallen by more than 50% since 1990.                             
In January 1994, the Japanese market appeared to                                
be one of the most attractively valued in the world. In                         
particular, the stocks of many of the larger                                    
brand-name exporters were trading at their lowest                               
level of valuation in 10 years. I still feel that a                             
weakening yen would bode very well for the                                      
earnings of these exporters; many have effectively                              
cut costs and restructured their operations. So                                 
valuation played a major role in my decision to                                 
reduce the fund's investments in emerging markets,                              
and increase its stake in Japan from about 15% six                              
months ago to roughly 38% on April 30."                                         
(bullet)  In addition to major exporters, the fund's stake in                   
Japan includes three of the countries largest                                   
brokerage companies: Daiwa, Nikko and Nomura.                                   
Trading volumes on Japan's stock exchanges are                                  
down nearly 80% from their peak levels several                                  
years ago. These brokerage firms offer attractive                               
stock valuations, coupled with the potential for                                
earnings growth should trading volume rise in                                   
Japan.                                                                          
(bullet)  The fund invests in several types of derivative                       
instruments. In a broad sense, derivatives are                                  
financial arrangements whose prices are derived from                            
other securities, currencies or indices. The fund has                           
the flexibility to use derivatives when they can add                            
value. For example, the fund has used forward                                   
currency contracts and, to a lesser extent, currency                            
options to hedge against currency volatility, and has                           
used futures on the Nikkei Average to gain exposure                             
to the Japanese stock market. The fund also has an                              
investment in indexed securities, or structured                                 
notes, linked mainly to foreign interest rates or                               
foreign stock markets. These indexed securities are                             
like customized bonds, and allow the manager to                                 
design investments that target the specific                                     
combination of market and currency exposure he                                  
believes the fund needs.                                                        
INTERNATIONAL GROWTH & INCOME                                               
INVESTMENT CHANGES                                                              

GEOGRAPHIC DIVERSIFICATION                                                      
AS OF APRIL 30, 1994                                                            

Argentina 6.7%                                                                  
Row: 1, Col: 1, Value: 21.1                                                     
Row: 1, Col: 2, Value: 2.3                                                      
Row: 1, Col: 3, Value: 14.5                                                     
Row: 1, Col: 4, Value: 3.9                                                      
Row: 1, Col: 5, Value: 27.1                                                     
Row: 1, Col: 6, Value: 5.2                                                      
Row: 1, Col: 7, Value: 5.5                                                      
Row: 1, Col: 8, Value: 5.3                                                      
Row: 1, Col: 9, Value: 3.1                                                      
Row: 1, Col: 10, Value: 5.3                                                     
Row: 1, Col: 11, Value: 6.7                                                     
Canada 5.3%                                                                     
United States 10.7%                                                             
Denmark 3.1%                                                                    
France 5.3%                                                                     
Sweden 2.3%                                                                     
Germany 5.5%                                                                    
Italy 5.2%                                                                      
Other 14.5%                                                                     
Netherlands 3.9%                                                                
Japan 37.5%                                                                     
AS OF OCTOBER 31, 1993                                                          
Denmark 2.3%                                                                    
Row: 1, Col: 1, Value: 22.0                                                     
Row: 1, Col: 2, Value: 7.5                                                      
Row: 1, Col: 3, Value: 7.4                                                      
Row: 1, Col: 4, Value: 3.5                                                      
Row: 1, Col: 5, Value: 4.9                                                      
Row: 1, Col: 6, Value: 14.8                                                     
Row: 1, Col: 7, Value: 4.9                                                      
Row: 1, Col: 8, Value: 14.9                                                     
Row: 1, Col: 9, Value: 2.9                                                      
Row: 1, Col: 10, Value: 7.4                                                     
Row: 1, Col: 11, Value: 7.5                                                     
Row: 1, Col: 12, Value: 2.3                                                     
France 7.5%                                                                     
United States 22.0%                                                             
Germany 7.4%                                                                    
Italy 2.9%                                                                      
United                                                                          
Kingdom                                                                         
7.5%                                                                            
Japan 14.9%                                                                     
Switzerland 7.4%                                                                
Sweden 3.5%                                                                     
Netherlands 4.9%                                                                
Spain 4.9%                                                                      
Other 14.8%                                                                     
ASSET ALLOCATION                                                                
                  % OF FUND'S    % OF FUND'S
                  INVESTMENTS    INVESTMENTS
                                  6 MONTHS AGO

Stocks and equity futures           60.5           69.5                         

Bonds                               29.3           8.7                          

Short-term and other investments    10.2           21.8                         

TOP TEN STOCKS                                                                  

                                                        · Enlarge/Download Table

                                                                                                
                                                                       % OF FUND'S  % OF FUND'S 
                                                                       INVESTMENTS  INVESTMENTS 
                                                                                    6 MONTHS AGO

Suzuki Motor Corp.                                                                              
(Japan, Autos, Tires, & Accessories)                               1.7          0.3         

Hitachi  Ltd.                                                                                   
(Japan, Electronics)                                                   1.2          0.4         

Veba Vereinigte Elektrizetaets & Bergwerks AG Ord.                                          
(Germany, Electric Utilities)                                                                   
                                                                       1.2          1.0         

Honda Motor Co. Ltd.                                                                            
(Japan, Autos, Tires, & Accessories)                               1.2          -           

Daiwa Securities                                                                                
(Japan, Securities Industry)                                           1.1          -           

Matsushita Electric Industrial Co. Ltd. (Japan, Consumer Electronics)                           
                                                                       1.1          -           

Schlumberger Ltd.                                                                               
(Netherlands, Energy Services)                                         1.1          -           

Nomura Securities Co. Ltd.                                                                      
(Japan, Securities Industry)                                           1.0          0.4         

British Petroleum PLC Ord.                                                                      
(United Kingdom, Oil & Gas)                                        1.0          0.5         

Toyota Motor Corp.                                                                              
(Japan, Autos, Tires, & Accessories)                               1.0          0.4         


TOP TEN INDUSTRIES                                                              
                        % OF FUND'S    % OF FUND'S
                        INVESTMENTS    INVESTMENTS
                                        6 MONTHS AGO

Durables                               14.9           2.3                       

Finance                                10.2           32.7                      

Technology                             8.4            3.0                       

Basic Industries                       6.6            3.6                       

Energy                                 4.1            2.5                       

Utilities                              3.7            7.8                       

Industrial Machinery & Equipment   2.7            2.3                       

Retail & Wholesale                 2.6            5.1                       

Construction & Real Estate         1.9            5.4                       

Nondurables                            1.2            1.3                       

INTERNATIONAL GROWTH & INCOME                                               
INVESTMENTS APRIL 30, 1994 (UNAUDITED)                                          

Showing Percentage of Total Value of Investment in Securities                   

COMMON STOCKS - 49.4%                                                           
SHARES VALUE (NOTE 1)                                                         
AUSTRALIA - 0.3%                                                                
Goodman Fielder Ltd. Ord.   4,500,000 $ 4,892,670  38238210                     
AUSTRIA - 0.2%                                                                  
Mayr Melnhof Karton AG (d)  50,000  3,193,458  57847192                         
BELGIUM - 0.2%                                                                  
Tessenderlo Chemie NV  8,900  2,648,615  88161299                               
BERMUDA - 0.4%                                                                  
ACE Ltd.   200,000  5,700,000  00499G92                                         
CANADA - 2.6%                                                                   
Alcan Aluminum Ltd.   491,000  10,297,969  01371610                             
American Barrick Resources Corp.   53,000  1,221,794  02451E10                  
Canadian Pacific Ltd. Ord.   244,700  3,937,639  13644030                       
Cominco Fertilizer Ltd.   139,000  2,613,727  20043C10                          
Inco Ltd.   20,000  484,559  45325840                                           
Methanex Corp.   450,400  4,845,376  59151K10                                   
Midland Walwyn, Inc. (b)  500,000  3,977,725  59780110                          
Noranda, Inc.   154,000  2,686,953  65542210                                    
QUNO Corp.   47,200  810,733  74726H10                                          
Sherritt Gordon Mines Ltd. (b)  792,200  6,732,013  82428010                    
37,608,488                                                                  
CHINA (PEOPLES REPUBLIC) - 0.1%                                                 
Yizheng Chemical Fibre Co.                                                      
Class H (d)  2,598,000  807,173  99599E22                                     
DENMARK - 0.7%                                                                  
Den Danske Bank Group AS (b)  49,900  2,764,415  24820692                       
FLS Industries (Smidth) Class B  24,800  2,066,587  35599092                    
Unidanmark AS Class A  150,000  5,300,721  92399792                             
10,131,723                                                                  
FINLAND - 0.6%                                                                  
Kone Corp. Class B Ord.   11,000  1,277,339  50400092                           
Outokumpu OY Class A  215,800  3,472,815  69099992                              
Repola OY  178,700  3,176,030  75999A92                                         
7,926,184                                                                   
FRANCE - 0.6%                                                                   
Alcatel Alsthom CGE  38,000  4,600,566  01390492                                
Unibail (b)  18,550  1,672,057  90499592                                        
UFB Locabail SA  33,400  2,526,546  90599B92                                    
8,799,169                                                                   
HONG KONG - 0.2%                                                                
Sun Hung Kai & Co. Ltd.   3,678,000  1,999,765  86690810                    
Sun Hung Kai Properties Ltd.   187,000  1,125,675  86676H10                     
3,125,440                                                                   
GERMANY - 5.5%                                                                  
Bayer AG  32,600  7,761,717  07273010                                           
Bayerische Motor Werke (BMW) (b)  22,500  12,256,650  05528310                  
Continental Gummi-Werke AG (b)  65,600  11,493,882  21199010                    
Deutsche Bank AG  26,000  12,280,048  25152592                                  
Douglas Holdings AG  15,500  5,585,248  25950099                                
Hoechst AG Ord.   22,500  4,958,434  43439010                                   
Karstadt AG  5,000  1,901,451  48576499                                         
Kaufhof AG  17,700  5,832,225  48615210                                         
Veba Vereinigte Elektrizetaets &                                            
Bergwerks AG Ord.   55,400  17,212,854  92239110                              
79,282,509                                                                  
INDIA - 0.0%                                                                    
ITC Ltd. GDS (1 share &                                                     
1/3 warrant) (b)(d)  39,000  721,500  45031810                                
IRELAND - 0.1%                                                                  
Smurfit (Jeff) Group PLC  241,300  1,171,753  84699793                          

SHARES VALUE (NOTE 1)                                                         
ITALY - 0.9%                                                                    
Fiat Spa  1,515,000 $ 6,592,250  31562110                                       
SIP Spa  2,310,000  6,912,259  78401792                                         
13,504,509                                                                  
JAPAN - 22.9%                                                                   
Aiwa Co. Ltd.   169,000  4,327,786  00959999                                    
Aoyama Trading Co. Ord.   119,000  5,508,717  03799092                          
Bridgestone Corp.   311,000  4,655,965  10844110                                
Canon, Inc.   706,000  11,473,453  13780199                                     
Casio Computer Co. Ltd.:                                                        
Ord.   832,000  10,325,228  14761893                                          
(warrants) (b)  800  380,000  14761896                                        
Daiwa Securities  1,009,000  15,801,344  23499010                               
Fujitsu Ltd. (b)  926,000  9,302,865  35959010                                  
Hitachi Ltd.   1,848,000  17,473,450  43357810                                  
Hitachi Ltd. ADR  77,000  7,305,375  43357850                                   
Hitachi Maxell Ltd.   575,000  11,609,871  43358990                             
Honda Motor Co. Ltd.   1,000,000  16,546,830  43812810                          
Honda Motor Co. Ltd. ADR  130,000  4,290,000  43812830                          
Kamei Corp.   205,000  2,645,031  48399792                                      
Kaneshita Construction Co. Ltd.                                                 
Ord. (b)  137,000  2,374,865  49099592                                        
Kenwood Corp.   263,000  2,276,933  49178692                                    
Kokusai Securities  382,000  7,374,372  50299092                                
Komori Corp.   154,000  4,156,013  50046299                                     
Kyocera Corporation  30,000  1,891,067  50155610                                
Marui Co. Ltd.   392,000  6,486,357  60444310                                   
Matsushita Electric Industrial Co. Ltd.   946,000  15,560,130  57687910         
Matsushita Electric Works Ltd.   530,000  6,003,151  57688110                   
Matsuzakaya Co. Ltd.   8,800  125,677  57699492                                 
Nikko Securities  496,000  5,960,010  65399010                                  
Nishimatsu Construction  185,000  2,113,662  65299C22                           
Nissan Motor Co. Ltd. Ord.   1,138,000  9,639,315  65474491                     
Nisshinbo Industries  385,000  4,057,423  65411310                              
Nitto Denko Corp.   370,000  5,357,038  65480230                                
Nomura Securities Co. Ltd.   662,000  14,409,734  65536130                      
Sekisui Chemical  774,000  7,928,299  81699210                                  
Shinetsu Chemical  105,000  2,161,430  82499210                                 
Sony Corp.   240,500  13,644,046  83569999                                      
Sony Corp. ADR  36,100  2,017,088  83569930                                     
Suzuki Motor Corp.   1,813,000  24,106,663  86958592                            
TDK Corp.   277,000  12,495,420  87235110                                       
Taiyo Yuden Co. Ltd.   407,000  4,449,621  87404799                             
Tokyo Style Co. Ltd.   231,000  4,209,102  88999410                             
Toshiba Corp.   861,000  6,529,798  89149310                                    
Toyobo Co.   1,575,000  6,996,213  90899392                                     
Toyota Motor Corp.  716,000  14,033,686  89399999                               
Toyota Motor Corp. ADR  175,000  6,803,125  89233130                            
Uny Co. Ltd.   351,000  5,047,376  91529010                                     
Yurtec Corp. (b)  154,000  3,837,486  97299492                                  
Zexel Corp.   643,000  3,964,526  99099392                                      
327,655,541                                                                 
KOREA (SOUTH) - 0.2%                                                            
Asia Motors Co., Inc.   61,200  992,596  04499B22                               
Korea Electric Power Corp.   35,000  1,213,321  50099B92                        
2,205,917                                                                   
MALAYSIA - 0.0%                                                                 
Tenega Nasional BHD  3,000  16,693  92099992                                    
MEXICO - 0.6%                                                                   
Grupo Financiero Bancomer SA de                                                 
CV sponsored ADR, Series C (d)  182,000  4,481,750  40048610                  
Telefonos de Mexico SA sponsored ADR                                            
representing shares Ord. Class L  75,000  4,415,625  87940378                 
8,897,375                                                                   
COMMON STOCKS - CONTINUED                                                       
SHARES VALUE (NOTE 1)                                                         
NETHERLANDS - 3.9%                                                              
Akzo Nobel NV Ord.   83,300 $ 10,037,280  01019910                              
DSM NV  119,400  8,901,136  23332H92                                            
International Nederlanden Groep CVA  90,000  3,761,917  46099892                
KBB NV Ord.   71,600  4,099,694  48130092                                       
KLM Royal Dutch Airlines Ord. (b)  110,000  3,169,944  48251620                 
Pirelli Tyre Holdings NV Ord. (b)  938,900  9,356,129  72499092                 
Schlumberger Ltd.   279,200  15,356,000  80685710                               
Twentsche Kabel Holding NV  15,000  1,656,343  91030099                         
56,338,443                                                                  
NEW ZEALAND - 0.4%                                                              
Brierley Investments Ltd.   7,147,211  5,406,079  10901410                      
NORWAY - 1.9%                                                                   
Bergesen Group Class B  50,000  1,109,390  08399011                             
Norsk Hydro AS:                                                                 
ADR (b)  47,300  1,602,288  65653160                                          
Ord.  249,600  8,463,851  65653150                                            
Olav Thon Eiendomsselskp Ord.   106,700  1,548,514  67941099                    
Orkla AS Class A Free shares  330,400  10,834,903  39299193                     
Saga Petroleum AS B Free shares  278,000  3,064,708  84099794                   
26,623,654                                                                  
SINGAPORE - 0.0%                                                                
Kim Eng Holdings Ltd.   310,000  550,259  49499D92                              
SOUTH AFRICA - 0.7%                                                             
Anglo American Corp. of South                                                   
Africa Ltd.:                                                                  
ADR  3,200  157,600  03486130                                                 
(Reg.) (b)  30,700  1,559,892  03486110                                       
Buffelsfontein Gold Mining Co. Ltd.:                                            
ADR  76,300  758,231  11987120                                                
Ord.   11,500  106,919  11987110                                              
De Beers Consolidated Mines Ltd. ADR  25,600  608,000  24025330                 
Driefontein Consolidated Ltd.:                                                  
ADR  42,500  488,750  26202640                                                
Ord.   75,500  889,675  26202630                                              
Free State Consolidated Gold Mines Ltd.:                                        
ADR  148,382  1,984,609  35614220                                             
Ord.   25,578  352,562  35614210                                            
Vaal Reefs Exploration & Mining Co.                                         
Ltd.:                                                                         
ADR  60,000  521,250  91850640                                                
(Reg.) (b)  9,400  845,492  91850610                                          
Western Deep Levels Ltd.:                                                       
ADR  18,300  683,963  95807720                                                
Ord.   14,700  572,108  95807710                                              
9,529,051                                                                   
SPAIN - 1.5%                                                                    
Argentaria Corp. Bancaria de Esp  264,000  11,471,867  21991392                 
FEC SA (Fuerzas Electricas Cataluna)                                            
Class E  750,000  5,565,457  35899E22                                         
Union Electrica Fenosa  800,000  4,005,200  90659510                            
21,042,524                                                                  
SWEDEN - 2.3%                                                                   
Aktiebolaget Electrolux  247,000  13,165,379  01019810                          
Avest Sheffield AB Ord. Free shares (b)  835,000  5,481,090  05399892           
Frontline (b)  760,000  2,045,396  35999F22                                     
SKF AB Ord. (b)  387,200  7,980,781  78437530                                   
Scribona AB B Free shares (b)  68,500  449,646  81199B92                        
Skandinaviska Enskilda Banken Class A                                           
Free shares (b)  300,000  2,067,717  88099222                                 
Trelleborg AB Class B Free shares (b)  100,000  1,378,477  89491010             
32,568,486                                                                  

SHARES VALUE (NOTE 1)                                                         
SWITZERLAND - 0.1%                                                              
Globus Magazine Part. Cert.   3,175 $ 2,115,686  37957792                       
UNITED KINGDOM - 1.4%                                                           
British Petroleum PLC:                                                          
ADR  76,500  5,355,000  11088940                                              
Ord.   2,404,500  14,084,479  11088910                                        
19,439,479                                                                  
UNITED STATES OF AMERICA - 1.1%                                                 
Amerada Hess Corp.   118,700  5,964,675  02355110                               
American Cyanamid Co.   120,700  5,672,900  02532110                            
American President Companies Ltd.   43,100  878,163  02910310                   
Imo Industries, Inc.   19,200  201,600  45254010                                
Kerr-McGee Corp.   61,000  2,729,750  49238610                                  
15,447,088                                                                  
TOTAL COMMON STOCKS                                                             
(Cost $657,726,276)   707,349,466                                             
PREFERRED STOCKS - 0.7%                                                         
CONVERTIBLE PREFERRED STOCKS - 0.1%                                             
AUSTRALIA - 0.0%                                                                
TNT Ltd. 8%  309,600  504,920  93599293                                         
UNITED STATES OF AMERICA - 0.1%                                                 
Unocal Corp. $3.50 (d)  28,800  1,548,000  91528920                             
TOTAL CONVERTIBLE PREFERRED STOCKS   2,052,920                                  
NONCONVERTIBLE PREFERRED STOCKS - 0.6%                                          
AUSTRIA - 0.0%                                                                  
Maculan Holding Ord.   9,000  866,882  55699594                                 
ITALY - 0.5%                                                                    
Fiat Spa D Risp Ord.   2,609,600  6,944,772  31599C95                           
KOREA (SOUTH) - 0.1%                                                            
Daewoo Heavy Industries Ltd.   74,827  935,685  23999494                        
TOTAL NONCONVERTIBLE PREFERRED STOCKS   8,747,339                               
TOTAL PREFERRED STOCKS                                                          
(Cost $9,095,382)   10,800,259                                                
CORPORATE BONDS - 5.7%                                                          
MOODY'S RATINGS PRINCIPAL                                                     
AMOUNT (A)                                                                  
CONVERTIBLE BONDS - 5.1%                                                        
ITALY - 0.9%                                                                    
Softe SA euro 4 1/4%,                                                           
7/30/98 (c) - ITL 15,865,000  12,706,200  84499DAA                            
JAPAN (C) - 4.2%                                                                
Bridgestone Corp.:                                                              
3.70%, 12/31/98 - JPY 166,000  2,084,611  1084419A                            
3 4/5%, 12/31/99 - JPY 170,000  2,134,843  1084419C                           
Canon, Inc. 1.30%,                                                              
12/19/08 - JPY 1,569,000  17,617,046  1378019A                                
Matsushita Electric Industrial                                                  
Co. Ltd. 3.30%,                                                               
5/20/94 Aa2 JPY 1,113,000  10,962,271  5768799B                             
CORPORATE BONDS - CONTINUED                                                     
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)                                      
AMOUNT (A)                                                                  
CONVERTIBLE BONDS - CONTINUED                                                   
JAPAN - CONTINUED                                                               
Matsushita Electric Works Co.                                                   
Ltd. 2.70%, 5/31/02 - JPY 1,079,000 $ 12,859,198  5768819A                    
Nippondenso Co. Ltd. 1 3/5%,                                                    
12/20/02 - JPY 813,000  9,769,171  6546379D                                   
Nishimatsu Construction                                                         
3.90%, 3/31/99 - JPY 264,000  3,081,250  65299CAA                             
Shin-Etsu Chemical Co. Ltd.                                                     
1.30%, 3/31/99 A2 JPY 181,000  2,089,355  824992AA                            
60,597,745                                                                  
TOTAL CONVERTIBLE BONDS   73,303,945                                            
NONCONVERTIBLE BONDS - 0.6%                                                     
CZECH REPUBLIC - 0.0%                                                           
Komercni Banka 0%,                                                              
5/3/98 (e)(g) - CSK 30,000,000  998,637  50499CAB                             
MEXICO - 0.6%                                                                   
Bancomext:                                                                      
euro:                                                                         
8%, 4/14/00 Ba2 $ 1,000,000  907,500  0596129A                            
8%, 8/5/03 Ba2  1,500,000  1,276,875  0596129C                            
8%, 8/5/03 (d) Ba2  1,500,000  1,276,875  059612AD                            
Cemex SA notes 8 7/8%,                                                          
6/10/98 (d) Ba2  3,000,000  2,932,500  151290AG                               
Empaques Ponderosa SA                                                           
euro 8 3/4%, 12/6/96 -  530,000  514,100  2915789B                            
Empresas La Moderna SA                                                          
10 1/4%, 11/12/97 (d) -  1,000,000  1,030,000  292449AA                       
7,937,850                                                                   
TOTAL NONCONVERTIBLE BONDS   8,936,487                                          
TOTAL CORPORATE BONDS                                                           
(Cost $80,922,246)   82,240,432                                               
GOVERNMENT OBLIGATIONS (H) - 23.6%                                              
ARGENTINA - 6.7%                                                                
Argentina Republic (e):                                                         
BOCON:                                                                        
0%, 4/1/01  - ARP 6,451,666  3,900,737  039995AH                            
0%, 4/1/01  B1  47,897,433  33,509,523  039995AF                            
0%, 9/1/02  - ARP 2,886,328  1,432,776  039995AJ                            
0%, 9/1/02  -  7,382,760  4,669,153  039995AM                               
0%, 4/1/07  - ARP 14,347,455  6,089,518  039995AW                           
Brady euro 4 1/2%,                                                            
3/31/23 B1  28,000,000  14,805,000  039995AD                                
euro 5%, 3/31/05  -  43,500,000  31,700,625  039995AU                         
Province of Chaco 11 7/8%,                                                      
9/10/97 (g) -  300,000  297,750  74399JAA                                     
96,405,082                                                                  
BRAZIL - 0.7%                                                                   
Brazil Federative Republic IDU                                                  
euro 4.3125%, 1/1/01 (e) -  12,870,000  9,346,837  1057569E                   

MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)                                      
AMOUNT (A)                                                                  

CANADA - 2.7%                                                                   
Canadian Government:                                                            
6 1/2%, 6/1/04 Aaa CAD 17,000,000 $ 10,856,295  135087VD                      
9 1/2%, 6/1/10 Aaa CAD 17,000,000  13,416,808  135087RS                       
Province of Ontario 7 3/4%,                                                     
12/8/03 Aa2 CAD 20,000,000  13,483,474  6832349H                              
37,756,577                                                                  
CZECH REPUBLIC - 0.1%                                                           
Czech Republic 14%, 7/8/96 - CSK 30,000,000  1,089,699  23299BAB                
DENMARK (C) - 2.4%                                                              
Danish Government Bullet:                                                       
8%, 5/15/03 Aa1 DKK 104,300  16,959,368  249998AG                             
7%, 2/15/04 Aa1 DKK 116,250  17,679,009  249998AV                             
34,638,377                                                                  
FINLAND - 0.7%                                                                  
Finnish Government 9 1/2%,                                                      
3/15/04 Aa2 FIM 52,000,000  10,361,265  3178739V                              
FRANCE (C) - 4.7%                                                               
French Government:                                                              
OAT:                                                                          
8 1/2%, 11/25/02 Aaa FRF 10,500  2,067,339  3517779U                        
8 1/2%, 4/25/03 Aaa FRF 50,000  9,840,050  351996AQ                         
8 1/2%, 4/25/23 Aaa FRF 25,000  5,001,325  351996AC                         
Strips 4/25/23 Aaa FRF 1,327,500  27,239,769                                  
8 1/2%, 12/26/12 Aaa FRF 120,000  23,567,340  3517779J                        
67,715,823                                                                  
ITALY (C) - 2.9%                                                                
Italian Government:                                                             
euro 5 1/8%, 7/29/03 A1 ITL 500,000  5,111,800  46599BAY                      
11%, 6/1/03  Aa3 ITL 48,980,000  33,006,983  46599BAD                         
10%, 8/1/03  Aa3 ITL 4,700,000  3,046,070  46599BAW                           
41,164,853                                                                  
MEXICO - 0.4%                                                                   
Mexican Government Brady                                                        
6.63%, 12/31/19 Ba2 FRF 54,750,000  5,951,090  597998VQ                       
NEW ZEALAND - 1.7%                                                              
Government of New Zealand                                                       
8%, 4/15/04 Aa3 NZD 40,900,000  24,804,408  6501629K                          
UNITED STATES OF AMERICA - 0.6%                                                 
U.S. Treasury Bills 0%,                                                         
5/5/94 Aaa $ 6,500,000  6,498,015  912794K4                                   
U.S. Treasury Notes 9 1/4%,                                                     
1/15/96 Aaa  2,000,000  2,116,560  912827XB                                   
8,614,575                                                                   
TOTAL GOVERNMENT OBLIGATIONS                                                    
(Cost $358,671,315)   337,848,586                                             
INDEXED SECURITIES - 2.3%                                                       
PRINCIPAL VALUE (NOTE 1)                                                      
AMOUNT (A)                                                                    
UNITED STATES OF AMERICA - 2.3%                                                 
Bankers Trust Company:                                                          
0%, 9/16/94 (indexed to value                                                 
of 2.5-year United Kingdom                                                  
securities,  multipled 8,                                                   
min. 92.43% of par) (e)  $ 3,747,000 $ 3,503,070  06699DAU                  
4%, 9/29/94 (indexed to value                                                 
of 2.5-year United Kingdom                                                  
securities, multipled 8,                                                    
min. 92.4% of par) (e)   1,650,000  1,550,010  06699DBD                     
0%, 12/23/94 (coupon                                                          
inversely indexed to CAD                                                    
Banker's Acceptance rate                                                    
and principal indexed to                                                    
value of 1-year Canadian                                                    
securities, both multiplied                                                 
by 13) (f)   2,000,000  1,077,200  0669919R                                 
4.81%, 12/29/94 (coupon                                                       
inversely indexed to                                                        
HELIBOR and principal                                                       
indexed to value of                                                         
2-year Finnish securities,                                                  
both multiplied by 8) (f)   2,000,000  1,427,600  0669919S                  
0%, 1/26/95 (coupon                                                           
inversely indexed to STIBOR                                                 
and principal indexed                                                       
to value of 2-year Swedish                                                  
securities, both multiplied                                                 
by 9) (f)   2,000,000  1,086,800  0669919Y                                  
0%, 1/31/95 (coupon                                                           
inversely indexed to                                                        
STIBOR and principal                                                        
indexed to value                                                            
of 2-year Swedish                                                           
securities, both multiplied                                                 
by 9) (f)   1,200,000  683,400  06699DAC                                    
0%, 2/22/99 (indexed to                                                       
Japanese stock index                                                        
minus S&P 500, multiplied                                               
by 1.226%)   3,000,000  2,780,700  06699DAL                                 
Bayerische Landesbank cert.                                                     
of dep.:                                                                      
4.9525%, 12/22/94                                                           
(coupon inversely indexed                                                 
to HELIBOR and principal                                                  
indexed to value of 2-year                                                
Finnish securities, both                                                  
multiplied by 8) (f)   5,000,000  3,635,000  072999AP                     
0%, 1/25/95 (inversely                                                      
indexed to 2-year SEK                                                     
LIBOR, multiplied by 9)   1,000,000  553,300  072999AR                    
22.31%, 3/22/95 (coupon                                                     
inversely indexed to                                                      
HELIBOR and principal                                                     
indexed to value of 3-year                                                
Finnish securities, both                                                  
multiplied by 7) (f)   1,000,000  962,500  072999AX                       

PRINCIPAL VALUE (NOTE 1)                                                      
AMOUNT (A)                                                                    

Citibank Nassau:                                                                
4%, 9/29/94 (indexed to                                                       
value of 2.5-year British                                                   
securities, multiplied by 8,                                                
min. 92.11% of par) (e)  $ 4,650,000 $ 4,316,595  223991CP                  
0%, 12/23/94 (coupon                                                          
inversely indexed to                                                        
STIBOR and principal                                                        
indexed to value of 2-year                                                  
Swedish securities, both                                                    
multiplied by 9) (f)   5,000,000  3,050,500  223991BM                       
0%, 12/29/94 (coupon                                                          
inversely indexed to CAD                                                    
Banker's Acceptance rate                                                    
and principal indexed                                                       
to value of 1-year                                                          
Canadian securities, both                                                   
multiplied by 13) (f)   750,000  395,475  223991BP                          
0%, 1/18/95 (coupon                                                           
inversely indexed to                                                        
STIBOR and principal                                                        
indexed to 2-year Swedish                                                   
securities, both multiplied                                                 
by 9) (f)   1,000,000  564,700  223991BQ                                    
ITT Corp. 3.66%, 6/27/94                                                        
(inversely indexed to 1-year                                                  
SEK swap rate, multiplied                                                     
by 10)   5,000,000  4,800,500  4506799M                                       
Merrill Lynch & Co. Inc. Japan                                              
Index equity participation                                                    
securities 0%, 1/31/00   2,730,000  2,648,100  590188FE                       
TOTAL INDEXED SECURITIES                                                        
(Cost $41,727,000)   33,035,450                                               
CERTIFICATES OF DEPOSIT - 0.1%                                                  
MALAYSIA - 0.1%                                                                 
Public Bank Malaysia 6 1/2%,                                                    
9/14/94 (Cost $741,636)  MYR 2,000,000  746,414                               
COMMERCIAL PAPER - 1.2%                                                         
INDONESIA - 0.6%                                                                
Indonesian Bank (SBI) (c):                                                      
0%, 5/13/94   IDR 3,500,000 $ 1,616,320  06099MAF                             
0%, 1/6/95   IDR 6,000,000  2,573,574  06099MAD                               
0%, 1/13/95   IDR 9,000,000  3,852,000  06099MAE                              
8,041,894                                                                   
MALAYSIA - 0.6%                                                                 
Bank Negara Malaysia 0%,                                                        
9/7/94  MYR 25,000,000  9,137,285  06399DAP                                   
TOTAL COMMERCIAL PAPER                                                          
(Cost $17,359,013)   17,179,179                                               
REPURCHASE AGREEMENTS - 17.0%                                                   
MATURITY                                                                      
AMOUNT                                                                        
Investments in repurchase agreements                                            
(U.S. Treasury obligations), in a joint                                       
trading account at 3.56% dated                                                
4/29/94 due 5/2/94  $ 243,592,244 $243,520,000                                
PURCHASED OPTIONS - 0.0%                                                        
EXPIRATION                                                                  
DATE/ UNDERLYING FACE                                                       
STRIKE PRICE AMOUNT AT VALUE                                                
Put Option on JPY   July 94/109.50 $ 26,962,474 $ 72,481  73499342              
Put Option on JPY   Aug. 94/103.71  19,407,958  283,033                         
TOTAL PURCHASED OPTIONS                                                         
(Cost $1,237,289)     355,514                                                 
TOTAL INVESTMENT IN SECURITIES - 100%                                           
(Cost $1,411,000,157)  $ 1,433,075,300                                        
WRITTEN OPTIONS                                                                 
EXPIRATION      DATE/ UNDERLYING FACE UNREALIZED                            
STRIKE PRICE AMOUNT AT VALUE GAIN/(LOSS)                                    
Call Option on JPY  July 94/106.50 $ 26,223,776 $ (918,783)                     
Call Option on JPY  Aug. 94/102.50  19,181,523  (95,038)                        
TOTAL WRITTEN OPTIONS                                                           
(Premium Received $1,186,602) $ 45,405,299 $ (1,013,821)                        
THE FACE VALUE OF WRITTEN CALL OPTIONS AS A PERCENTAGE OF TOTAL INVESTMENT      
IN SECURITIES - 3.2%                                                            
FUTURES CONTRACTS                                                               
EXPIRATION UNDERLYING FACE UNREALIZED                                       
DATE AMOUNT AT VALUE GAIN/(LOSS)                                            
PURCHASED                                                                       
1,490 Nikkei Stock Average                                                      
Contracts   June 1994 $ 149,517,850 $ (3,497,850)                             
THE FACE VALUE OF FUTURES PURCHASED AS A PERCENTAGE OF TOTAL INVESTMENT IN      
SECURITIES - 10.4%                                                              
FORWARD FOREIGN CURRENCY CONTRACTS                                              
SETTLEMENT  UNREALIZED                                                      
DATE(S) VALUE GAIN/(LOSS)                                                   
CONTRACTS TO BUY                                                                
57,984,888 ATS 5/10/94 $ 4,988,861 $ 191,051                                
15,081,500 CHF 5/2/94  10,748,163  134,116                                  
436,080,216 ESP 5/3/94  15,907,790  382,616                                 
29,798,500 FRF 5/2/94  5,265,683  62,068                                    
4,674,834 GBP 5/16/94 to                                                    
6/29/94  7,084,232  111,253                                             
14,046,900 NLG 5/10/94 to                                                   
6/6/94  25,863,551  585,669                                             
40,902,500 SEK 5/5/94  5,366,536  184,544                                   
TOTAL CONTRACTS TO BUY                                                          
(Payable amount $73,573,499) $ 75,224,816 $ 1,651,317                           
THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF TOTAL INVESTMENT IN            
SECURITIES - 5.2%                                                               
FORWARD FOREIGN CURRENCY CONTRACTS                                              
SETTLEMENT  UNREALIZED                                                      
DATE(S) VALUE GAIN/(LOSS)                                                   
CONTRACTS TO SELL                                                               
86,437,500 ATS 5/10/94 $ 7,436,846 $ (317,972)                              
911,402,478 BEF 5/4/94 to                                                   
6/30/94  26,691,766  (1,043,721)                                        
34,189,203 CAD 5/18/94 to                                                   
6/29/94  24,654,156  109,783                                            
30,163,000 CHF 5/2/94 to                                                    
8/2/94  21,511,130  (517,935)                                           
62,747,600 DEM 5/11/94 to                                                   
7/18/94  37,910,257  (2,135,257)                                        
40,175,400 DKK 7/7/94  6,176,175  (176,175)                                 
2,142,588,492 ESP 5/3/94  15,907,791  (902,583)                             
483,259,930 FRF 5/2/94 to                                                   
8/8/94  85,201,080  (1,885,885)                                         
4,674,834 GBP 5/16/94 to                                                    
6/29/94  7,084,232  (125,729)                                           
32,855,839,375 JPY 5/31/94 to                                               
7/25/94  324,297,021  (14,144,997)                                      
138,720,515 NLG 5/10/94 to                                                  
6/13/94  74,640,877  (2,304,895)                                        
40,902,500 SEK 5/5/94  5,366,536  (247,645)                                 
TOTAL CONTRACTS TO SELL                                                         
(Receivable amount $613,184,856) $ 636,877,867 $ (23,693,011)                   
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF TOTAL INVESTMENT IN           
SECURITIES - 44.4%                                                              
CURRENCY ABBREVIATIONS                                                          
ARP - Argentinean peso                                                          
ATS - Austrian schilling                                                        
BEF - Belgian franc                                                             
GBP - British pound                                                             
CAD - Canadian dollar                                                           
CSK - Czech koruna                                                              
DKK - Danish krone                                                              
NLG - Dutch guilder                                                             
FIM - Finnish markka                                                            
FRF - French franc                                                              
DEM - German Deutsche mark                                                      
IDR - Indonesian rupiah                                                         
ITL - Italian lira                                                              
JPY - Japanese yen                                                              
MYR - Malaysian ringgit                                                         
NZD - New Zealand dollar                                                        
SEK - Swedish krona                                                             
CHF - Swiss franc                                                               
LEGEND                                                                          
1. Principal amount is stated in United States dollars unless otherwise         
noted.                                                                          
2. Non-income producing                                                         
3. Principal amount in thousands                                                
4. 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 $15,991,256 or 1.1% of net       
assets.                                                                         
5. The coupon rate shown on floating or adjustable rate securities              
represents the rate at period end.                                              
6. Inverse floating rate security is a security where the coupon is             
inversely indexed to a floating interest rate multiplied by a specified         
factor. If the floating rate is high enough, the coupon rate may be zero or     
be a negative amount that is carried forward to reduce future interest          
and/or principal payments. The price may be considerably more volatile than     
the price of a comparable fixed rate security.                                  
7. Restricted securities - investment in securities not registered under        
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).       
Additional information on each holding is as follows:                           
ACQUISITION ACQUISITION                                                     
SECURITY DATE COST                                                            
Province of Chaco 11 7/8%,                                                      
9/10/97  3/9/94 $ 308,208                                                     
Komercni Banka 0%, 5/3/98  3/3/94 $ 1,006,711                                   
8. Most foreign government obligations have not been individually rated by      
S&P or Moody's. The ratings listed are assigned to securities by FMR,       
the fund's investment adviser, based principally on S&P and Moody's         
ratings of the sovereign credit of the issuing government.                      
OTHER INFORMATION                                                               
The composition of long-term debt holdings as a percentage of total value       
of investment in securities, is as follows:                                     
MOODY'S RATINGS S&P RATINGS                                               
Aaa, Aa, A 14.9% AAA, AA, A 15.1%                                               
Baa 0.0% BBB 0.0%                                                               
Ba 0.9% BB 2.8%                                                                 
B 4.1% B 0.0%                                                                   
Caa 0.0% CCC 0.0%                                                               
Ca, C 0.0% CC, C 0.0%                                                           
D 0.0%                                                                      
For some foreign government obligations, FMR has assigned the ratings of        
the sovereign credit of the issuing government. The percentage not rated by     
either S&P or Moody's amounted to 3.6%. FMR has determined that unrated     
debt securities that are lower quality account for 0.4% of the total value      
of investment in securities.                                                    
At the end of the period, restricted securities (excluding 144A issues)         
amounted to $1,296,387 or 0.1% of net assets.                                   
Purchases and sales of securities, other than short-term securities,            
aggregated $1,176,229,208 and $856,869,097, respectively.                       
The market value of futures contracts opened and closed amounted to             
$289,800,600 and $140,282,750, respectively.                                    
The following is a summary of the fund's written options activity:              
AGGREGATE                                                                   
NUMBER OF FACE VALUE                                                          
CONTRACTS OF CONTRACTS                                                        
Call Option on JPY:                                                             
Outstanding at November 1, 1993  -  -                                           
Contracts opened  2 $ 46,419,120                                                
Contracts closed  -  -                                                          
Outstanding at April 30, 1994   2 $ 46,419,120                                  
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 $9,815 for the period.                                               
The fund participated in the bank borrowing program. The maximum loan and       
the average daily loan balances during the period for which loans were          
outstanding amounted to $14,177,000 and $14,177,000, respectively. The          
weighted average interest rate was 3 7/8%. Interest expense includes $1,526     
paid under the bank borrowing program (see Note 5 of Notes to Financial         
Statements).                                                                    
INCOME TAX INFORMATION                                                          
At April 30, 1994, the aggregate cost of investment securities for income       
tax purposes was $1,411,041,681. Net unrealized appreciation  aggregated        
$22,033,619, of which $98,921,557 related to appreciated investment             
securities and $76,887,938 related to depreciated investment securities.        
INDUSTRY DIVERSIFICATION                                                        
As a Percentage of Total Value of Investments                                   
Basic Industries    6.6%                                                        
Conglomerates   0.4                                                             
Construction & Real Estate   1.9                                            
Durables   14.9                                                                 
Energy   4.1                                                                    
Finance   10.2                                                                  
Government Obligations    24.1                                                  
Health   0.4                                                                    
Industrial Machinery & Equipment   2.7                                      
Nondurables   1.2                                                               
Precious Metals   0.5                                                           
Repurchase Agreements   17.0                                                    
Retail & Wholesale   2.6                                                    
Services    0.5                                                                 
Technology   8.4                                                                
Transportation   0.8                                                            
Utilities   3.7                                                                 
100.0%                                                                  
INTERNATIONAL GROWTH & INCOME                                               
FINANCIAL STATEMENTS                                                            

STATEMENT OF ASSETS AND LIABILITIES                                             

                                                                · Download Table

                                                                   
                                                                   
APRIL 30, 1994 (UNAUDITED)                                         
ASSETS                                                             
Investment in securities, at value (including repurchase agreements
of $243,520,000) (cost $1,411,000,157)                             
$ 1,433,075,300                                                    
(Notes 1 and 2) - See accompanying schedule                        
Long foreign currency contracts held, at value (cost $73,573,499)  
75,224,816                                                         
(Note 2)                                                           
Short foreign currency contracts (Note 2)                          
$ (636,877,867                                                     
Contracts held, at value)                                          
Receivable for contracts held                                      
613,184,856      (23,693,011)                                      
Cash                                                               
255,588                                                            
Receivable for investments sold                                    
16,987,725                                                         
Receivable for fund shares sold                                    
4,850,441                                                          
Dividends receivable                                               
1,900,643                                                          
Interest receivable                                                
9,131,479                                                          
Receivable for daily variation on futures contracts                
149,000                                                            
 TOTAL ASSETS                                                      
 1,517,881,981                                                     
LIABILITIES                                                        
Payable for foreign currency contracts held (Note 2)               
73,573,499                                                         
Payable for investments purchased                                  
34,906,042                                                         
Net payable for closed foreign currency contracts                  
54,654                                                             
Payable for fund shares redeemed                                   
3,902,049                                                          
Accrued management fee                                             
890,336                                                            
Written options, at value (premium received $1,186,602)            
2,200,423                                                          
Other payables and accrued expenses                                
839,353                                                            
TOTAL LIABILITIES                                                  
116,366,356                                                        
NET ASSETS                                                         
$ 1,401,515,625                                                    
Net Assets consist of (Note 1):                                    
Paid in capital                                                    
$ 1,328,901,985                                                    
Undistributed net investment income                                
5,829,438                                                          
Accumulated undistributed net realized gain (loss) on investments  
71,262,424                                                         
Net unrealized appreciation (depreciation) on:                     
Investment securities                                              
22,075,143                                                         
Foreign currency contracts                                         
(22,041,694)                                                       
Futures contracts                                                  
(3,497,850)                                                        
Written options                                                    
(1,013,821)                                                        
NET ASSETS, for 80,470,637 shares outstanding                      
$ 1,401,515,625                                                    
NET ASSET VALUE offering price and redemption price per share      
($1,401,515,625 (divided by) 80,470,637 shares) (Note 4)           

STATEMENT OF OPERATIONS                                                         

                                                        · Enlarge/Download Table

                                                                                              
 SIX MONTHS ENDED APRIL 30, 1994 (UNAUDITED)                                                  

INVESTMENT INCOME                                                                 $ 5,305,663 
Dividends                                                                                     

Interest                                                                           12,468,044 

                                                                                   17,773,707 

Less foreign taxes withheld (Note 1)                                               (771,552   
                                                                                  )           

 TOTAL INCOME                                                                      17,002,155 

EXPENSES                                                                                      

Management fee (Note 4)                                             $ 4,730,611               

Transfer agent fees (Note 4)                                         2,023,176                

Accounting fees and expenses                                         261,998                  
(Note 4)                                                                                      

Non-interested trustees' compensation                                3,450                    

Custodian fees and expenses                                          486,697                  

Registration fees                                                    56,570                   

Audit                                                                22,120                   

Legal                                                                6,610                    

Interest (Note 5)                                                    1,526                    

Miscellaneous                                                        3,589                    

 TOTAL EXPENSES                                                                    7,596,347  

NET INVESTMENT INCOME                                                              9,405,808  

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTES 1 AND 2)                            
Net realized gain (loss) on:                                                                  

 Investment securities                                               67,735,791               

 Foreign currency contracts                                          (4,728,562               
                                                                    )                         

 Futures contracts                                                   8,479,350     71,486,579 

Change in net unrealized appreciation (depreciation) on:                                      

 Investment securities                                               (48,663,759              
                                                                    )                         

 Foreign currency contracts                                          (23,468,383              
                                                                    )                         

 Futures contracts                                                   (3,497,850               
                                                                    )                         

 Written options                                                     (1,013,821    (76,643,813
                                                                    )             )           

NET GAIN (LOSS)                                                                    (5,157,234 
                                                                                  )           

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS                   $ 4,248,574 

OTHER INFORMATION                                                                             

 Deferred sales charges withheld by                                                $4,893     
 FDC (Note 4)                                                                                 

 Accounting fees paid to FSC                                                       $258,637   
 (Note 4)                                                                                     


STATEMENT OF CHANGES IN NET ASSETS                                              
INCREASE (DECREASE) IN NET ASSETS   SIX MONTHS         YEAR ENDED               
                      ENDED APRIL 30,    OCTOBER 31,
               1994               1993
   (UNAUDITED)

                                                                · Download Table

                                                                        
                                                                        
Operations                                                              
$ 9,405,808       $ 2,629,481                                           
Net investment income                                                   
Net realized gain (loss) on investments                                 
71,486,579        1,087,001                                             
 Change in net unrealized appreciation (depreciation) on investments    
(76,643,813)      73,793,319                                            
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS         
4,248,574         77,509,801                                            
Distributions to shareholders                                           
(3,499,228)       (1,389,982)                                           
From net investment income                                              
From net realized gain                                                  
(1,269,232)       (29,697)                                              
In excess of net realized gain                                          
(1,646,787)       -                                                     
TOTAL  DISTRIBUTIONS                                                    
(6,415,247)       (1,419,679)                                           
Share transactions                                                      
825,452,361       1,037,700,151                                         
Net proceeds from sales of shares                                       
Reinvestment of distributions                                           
6,281,537         1,310,736                                             
Cost of shares redeemed                                                 
(430,898,657)     (172,260,456)                                         
Net increase (decrease) in net assets resulting from                    
share transactions                                                      
400,835,241       866,750,431                                           
TOTAL INCREASE (DECREASE) IN NET ASSETS                                 
398,668,568       942,840,553                                           
NET ASSETS                                                              
Beginning of period                                                     
1,002,847,057     60,006,504                                            
End of period (including undistributed net investment income of         
 $5,829,438 and $3,611,891, respectively)                               
 $ 1,401,515,625   $ 1,002,847,057                                      
OTHER INFORMATION                                                       
Shares                                                                  
 Sold                                                                   
46,666,227        64,336,913                                            
 Issued in reinvestment of distributions                                
363,935           99,073                                                
 Redeemed                                                               
(24,692,694)      (10,819,492)                                          
Net increase (decrease)                                                 
22,337,468        53,616,494                                            
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.

FINANCIAL HIGHLIGHTS                                                            

                                                        · Enlarge/Download Table

                                                                                                         
                                                                                                         

SIX MONTHS ENDED   YEARS ENDED OCTOBER 31,                                                               
APRIL 30, 1994                                                                                           
(UNAUDITED)                                                                                              
SELECTED PER-SHARE DATA                                                                                  
                   1993                      1992            1991              1990      1989            
Net asset value, beginning of period                                                                     
$ 17.25            $ 13.29                   $ 13.99         $ 13.71           $ 12.87   $ 11.81         
Income from Investment Operations                                                                        
 Net investment income                                                                                   
.13                .14**                     .31             .30(sub section)  .25       .30             
 Net realized and unrealized gain (loss) on investments                                                  
.15#               4.14                      (.84)           .41               .75       .96             
 Total from investment operations                                                                        
.28                4.28                      (.53)           .71               1.00      1.26            
Less Distributions                                                                                       
 From net investment income                                                                              
(.06)              (.31)                     (.16)           (.38)             (.16)     (.13)           
 From net realized gain                                                                                  
(.02)              (.01)(s diamond)          (.01)(s diamond)(.05)(s diamond)  -         (.07)(s diamond)
 In excess of net realized gain                                                                          
(.03)              -                         -               -                 -         -               
 Total distributions                                                                                     
(.11)              (.32)                     (.17)           (.43)             (.16)     (.20)           
Net asset value, end of period                                                                           
$ 17.42            $ 17.25                   $ 13.29         $ 13.99           $ 13.71   $ 12.87         
TOTAL RETURN (dagger)(diamond)                                                                           
1.63%              32.94%                    (3.81)%         5.43%             7.79%     10.85%          
RATIOS AND SUPPLEMENTAL DATA                                                                             
Net assets, end of period (000s omitted)                                                                 
$ 1,401,516        $ 1,002,847               $ 60,007        $ 49,738          $ 35,380  $ 26,333        
Ratio of expenses to average net assets                                                                  
1.26%*             1.52%                     1.62%           1.89%             1.98%     1.92%           
Ratio of expenses to average net assets before expense                                                   
1.26%*             1.52%                     1.62%           1.89%             1.98%     2.16%           
reductions                                                                                               
Ratio of net investment income to average net assets                                                     
1.56%*             .87%                      2.78%           2.86%             2.31%     1.98%           
Portfolio turnover rate                                                                                  
184%*              24%                       76%             117%              102%      147%            
* ANNUALIZED                                                                                             
(sub section) INCLUDES $.02 PER SHARE FROM RECOVERY OF FOREIGN TAXES                                     
PREVIOUSLY WITHHELD ON DIVIDEND AND INTEREST PAYMENTS.                                                   
(s diamond) INCLUDES AMOUNTS DISTRIBUTED FROM NET REALIZED GAINS ON FOREIGN                              
CURRENCY RELATED TRANSACTIONS TAXABLE AS ORDINARY INCOME.                                                
** NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE                                  
SHARES OUTSTANDING DURING THE PERIOD.                                                                    
(dagger) TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR                                  
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.                                                        
# THE AMOUNT SHOWN FOR A SHARE OUTSTANDING DOES NOT CORRESPOND WITH THE                                  
AGGREGATE NET GAIN (LOSS) 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.                                                                   
(diamond)THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES                                    
NOT BEEN REDUCED DURING THE PERIODS SHOWN.                                                               

OVERSEAS                                                                        
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). Overseas has a       
3% sales charge, which, beginning May 31, 1994, has been waived through         
June 30, 1995.                                                                  
CUMULATIVE TOTAL RETURNS                                                        
PERIODS ENDED              PAST 6   PAST 1   PAST 5   LIFE OF                   
APRIL 30, 1994             MONTH    YEAR     YEARS    FUND                      
S                         

OVERSEAS                   8.27%    23.19%   47.56%   518.83%                   

OVERSEAS                                                                        
(INCL. 3% SALES CHARGE)   5.02%    19.49%   43.13%   500.27%                  

Morgan Stanley EAFE                                                             
Index                     5.57%    16.64%   17.76%   413.88%                  

Average International                                                           
Fund                      6.70%    21.97%   51.95%   n/a                      

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms        
over a set period - in this case, six months, one year, five years, or          
since the fund started on December 4, 1984. You can compare the fund's          
figures to the performance of the Morgan Stanley EAFE index - a broad           
measure of the performance of stocks in Europe, Australia, and the Far          
East. You can also compare the fund's performance to the average                
international fund which reflects the performance of 170 funds with similar     
objectives tracked by Lipper Analytical Services. These benchmarks include      
reinvested dividends and capital gains, if any, and exclude the effects of      
sales charges.                                                                  
AVERAGE ANNUAL TOTAL RETURNS                                                    
PERIODS ENDED                PAST 1   PAST 5   LIFE OF                          
APRIL 30, 1994               YEAR     YEARS    FUND                             

OVERSEAS                     23.19%   8.09%    21.37%                           

OVERSEAS                                                                        
(INCL. 3% SALES CHARGE)     19.49%   7.44%    20.98%                          

Morgan Stanley EAFE Index    16.64%   3.32%    19.00%                           

Average International Fund   21.97%   8.50%    n/a                              

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return      
and show you what would have happened if the fund had performed at a            
constant rate each year.                                                        
$10,000 OVER LIFE OF FUND                                                       
Overseas (094)      MS EAFE                                 
12/04/84        9700.00     10000.00                                          
12/31/84        9981.30     10193.53                                          
01/31/85       10689.40     10422.65                                          
02/28/85       10640.90     10361.03                                          
03/31/85       11067.70     11164.76                                          
04/30/85       11504.20     11126.55                                          
05/31/85       12464.50     11599.34                                          
06/30/85       12697.30     11897.35                                          
07/31/85       13473.30     12511.82                                          
08/31/85       14055.30     12913.71                                          
09/30/85       14559.70     13669.40                                          
10/31/85       15442.40     14599.44                                          
11/30/85       16548.20     15198.76                                          
12/31/85       17833.85     15918.65                                          
01/31/86       18371.30     16317.71                                          
02/28/86       21078.14     18125.28                                          
03/31/86       24703.54     20674.06                                          
04/30/86       25465.75     22027.83                                          
05/31/86       24654.68     21048.78                                          
06/30/86       26579.76     22481.82                                          
07/31/86       29579.75     23869.90                                          
08/31/86       31543.92     26221.76                                          
09/30/86       30078.12     25952.02                                          
10/31/86       26296.37     24218.32                                          
11/30/86       28758.91     25614.83                                          
12/31/86       30183.41     26972.00                                          
01/31/87       34828.46     29838.08                                          
02/28/87       35945.95     30731.05                                          
03/31/87       40010.55     33249.27                                          
04/30/87       43001.48     36767.40                                          
05/31/87       42837.14     36767.26                                          
06/30/87       39824.30     35595.88                                          
07/31/87       40415.91     35533.69                                          
08/31/87       43779.34     38198.08                                          
09/30/87       43242.50     37596.71                                          
10/31/87       33853.39     32164.65                                          
11/30/87       33579.50     32647.11                                          
12/31/87       35727.39     33616.52                                          
01/31/88       34338.32     34216.71                                          
02/29/88       35428.67     36497.48                                          
03/31/88       37579.48     38741.56                                          
04/30/88       38565.27     39304.55                                          
05/31/88       37788.59     38044.60                                          
06/30/88       36713.18     37041.81                                          
07/31/88       36235.22     38203.95                                          
08/31/88       35144.88     35719.99                                          
09/30/88       36459.26     37280.76                                          
10/31/88       37788.59     40470.59                                          
11/30/88       38774.38     42881.27                                          
12/31/88       38677.38     43120.36                                          
01/31/89       39151.29     43879.03                                          
02/28/89       40175.55     44104.58                                          
03/31/89       39823.94     43238.97                                          
04/30/89       40680.04     43639.99                                          
05/31/89       38723.24     41265.84                                          
06/30/89       37591.96     40571.18                                          
07/31/89       41322.11     45665.83                                          
08/31/89       40359.00     43612.06                                          
09/30/89       42514.54     45598.67                                          
10/31/89       40206.13     43766.63                                          
11/30/89       42483.96     45966.76                                          
12/31/89       45226.82     47662.81                                          
01/31/90       44200.40     45889.35                                          
02/28/90       43286.24     42686.52                                          
03/31/90       44713.61     38239.61                                          
04/30/90       44601.34     37936.14                                          
05/31/90       47632.50     42264.70                                          
06/30/90       48482.51     41892.44                                          
07/31/90       50872.16     42482.52                                          
08/31/90       45242.86     38357.11                                          
09/30/90       40223.00     33011.49                                          
10/31/90       44056.06     38155.31                                          
11/30/90       42596.61     35904.60                                          
12/31/90       42240.75     36486.24                                          
01/31/91       43177.92     37666.39                                          
02/28/91       44745.54     41704.18                                          
03/31/91       43280.15     39200.58                                          
04/30/91       43893.57     39585.54                                          
05/31/91       43978.77     39998.59                                          
06/30/91       41218.38     37059.46                                          
07/31/91       43467.59     38880.26                                          
08/31/91       43791.34     38090.68                                          
09/30/91       45716.79     40237.43                                          
10/31/91       45870.15     40807.83                                          
11/30/91       44217.32     38902.74                                          
12/31/91       45879.11     40911.80                                          
01/31/92       46405.83     40037.93                                          
02/29/92       45443.20     38604.89                                          
03/31/92       44498.74     36056.33                                          
04/30/92       47204.99     36227.73                                          
05/31/92       49239.22     38652.66                                          
06/30/92       48076.80     36819.27                                          
07/31/92       45025.46     35876.95                                          
08/31/92       44644.04     38127.18                                          
09/30/92       42791.44     37374.28                                          
10/31/92       39885.40     35413.83                                          
11/30/92       39685.61     35747.08                                          
12/31/92       40623.32     35931.97                                          
01/31/93       41807.32     35927.55                                          
02/28/93       42664.70     37012.81                                          
03/31/93       45563.45     40239.06                                          
04/30/93       48727.57     44057.85                                          
05/31/93       49850.33     44988.34                                          
06/30/93       48666.33     44286.43                                          
07/31/93       50891.43     45836.67                                          
08/31/93       53769.76     48311.07                                          
09/30/93       53300.25     47223.62                                          
10/31/93       55443.69     48678.94                                          
11/30/93       52912.39     44423.89                                          
12/31/93       56894.62     47631.62                                          
01/31/94       60939.26     51658.65                                          
02/28/94       59798.47     51515.57                                          
03/31/94       58076.90     49296.72                                          
04/30/94       60026.62     51388.34                                          

Let's say you invested $10,000 in Fidelity Overseas Fund on its start date      
and paid the 3% sales charge. By April 30, 1994, it would have grown to         
$60,027 - a 500.27% increase on your initial investment. That compares to       
$10,000 invested in the Morgan Stanley EAFE index, which would have grown       
to $51,388 over the same period - a 413.88% increase.                           

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.                                  
(checkmark)                                                                     
OVERSEAS                                                                        
FUND TALK: THE MANAGER'S OVERVIEW                                               

An interview with John Hickling,                                                
Portfolio Manager of  Overseas                                                  
Q. JOHN, HOW DID THE FUND PERFORM?                                              
A. Quite well. For the six months and year ended April 30, 1994, the fund       
had total returns of 8.27% and 23.19%, respectively. It outperformed the        
EAFE index - a broad measure of stocks in Europe, Australia and the Far         
East - which returned 5.57% and 16.64% over the same periods. The fund also     
beat the average international fund, which had a return of 6.70% for the        
past six months and 21.97% for the past year, according to Lipper               
Analytical Services.                                                            
Q. WHY DID THE FUND OUTPERFORM THE INDEX?                                       
A. There were two primary reasons. First, when Japanese stocks began            
turning in solid results in 1994, I didn't rush in and buy stocks               
indiscriminately as some investors did. I chose my stocks carefully,            
focusing on auto, electronics and consumer electronics companies, which all     
turned in strong performances. At the end of the period, Japanese companies     
made up over 20% of the fund. The second reason the fund beat the index is      
that it had substantially more money invested in Italy than the index did.      
Over the period, Italy was one of the top-performing markets in the world       
for several reasons. First, its economy started to recover a bit, and,          
along with this, many Italian companies, such as Fiat, took steps to            
significantly cut costs. In addition, interest rates came down and the          
country's currency was devalued. As a result of this devaluation, Italy's       
exports became less expensive in other countries, and thus, more                
competitive. Finally, a new group of conservative politicians with a            
pro-business agenda came into power.                                            
Q. WHAT DO YOU THINK IS BEHIND THE TURNAROUND IN JAPAN?                         
A. A couple of things. First, the economy, which had been depressed,            
started to pick up. In addition, many Japanese companies were well placed       
to profit from the improving economy because they had taken significant         
steps to reduce their costs over the past few years. I should note that         
Japanese companies have been able to avoid cutting costs the American way -     
through factory closings and layoffs - because in Japan most workers' jobs      
have built-in wage flexibility. This means an employee's pay is based           
largely on overtime and bonuses, both of which tend to drop off when the        
economy falls. As a result, Japanese companies can trim expenses without        
reducing head count. Japan's economy also experienced a boost from tax          
cuts, an increase in the government's investment spending, dropping oil         
prices (an important factor because Japan imports all of its oil), and low      
interest rates. Keeping all these factors in mind, I think if the yen stops     
strengthening, many Japanese companies could show a substantial profit.         
Q. TOYOTA IS ONE OF YOUR TOP STOCKS. IS IT A GOOD EXAMPLE OF A JAPANESE         
COMPANY THAT'S BEEN CUTTING COSTS?                                              
A. Absolutely. I was more impressed with Toyota than any other Japanese         
company in terms of its cost-cutting measures. It took a number of steps        
that helped it effectively reduce production costs. For example, the            
company stopped making extras like rear view mirrors in a lot of colors and     
styles -something that was considered to be high status in the `80s, but        
that made cars more expensive to produce. Instead it started focusing on        
keeping production simple and costs down, what Toyota calls "value              
engineering." In fact, the company has been so successful in reducing           
expenses that it projects the cost of developing its next automobile will       
be about 4% of the cost of developing the Lexus, the company's luxury car       
introduced in 1989.                                                             
Q. ARE JAPANESE COMPANIES TAKING OTHER STEPS TO IMPROVE PRODUCTIVITY?           
A. Yes, I believe they are. A number of Japanese companies are moving their     
operations overseas, to less expensive locations, such as Malaysia and the      
United States. Then they're importing the goods they produce back to Japan.     
This makes a lot of sense because it's more expensive to buy or make a          
product in Japan than just about anywhere else in the world. Japanese           
companies also are importing more goods from other countries. For instance,     
car companies are asking themselves,  why should we buy steel in Japan and      
pay 50% more for it than Ford pays for its steel? As a case in point, Mazda     
just announced it was testing steel in Korea, which many market watchers        
see as an indication that the car maker plans to buy steel from Korea.          
Q. LET'S SWITCH THE FOCUS TO EUROPE. ON THE WHOLE, HOW DID IT LOOK?             
A. Europe's economy is several years behind the United States'. The United      
States went into recession before Europe did, and while it started coming       
out of recession early in 1993, Europe is just beginning to emerge. Over        
the past six months, Europe turned in a good performance because many           
companies there have implemented strict cost-cutting measures. Going            
forward, I believe many companies could see significant increases in            
productivity and profits as long as the European economic outlook doesn't       
worsen.                                                                         
Q. WHAT EUROPEAN INDUSTRIES LOOKED GOOD?                                        
A. Over the past year as European economies began to improve, there was a       
major shift out of banks and insurance companies and into cyclicals, such       
as chemical and automobile companies. Financial stocks fell out of favor        
after their stock prices rose dramatically and many investors sold them to      
take profits. Cyclicals are stocks that tend to perform well when the           
economy does well, or poorly when the economy is weak. Some cyclicals that      
turned in good results were the Swiss chemical and pharmaceutical company       
Ciba-Geigy; German chemical companies Bayer and Hoechst; and the French         
auto maker Peugeot.                                                             
Q. THERE'S BEEN A LOT OF TALK LATELY ABOUT DERIVATIVES. DOES THE FUND USE       
THEM?                                                                           
A. The fund has the authority to use derivatives to help manage its             
investments more efficiently. I currently am using forward contracts to         
hedge a portion of the fund against currency volatility, and also have a        
small position in indexed securities linked to European bond markets.           
Q. IN HINDSIGHT, DO YOU REGRET ANY OF YOUR INVESTMENT DECISIONS?                
A. Yes. I was a bit too cautious with my investments in Southeast Asia. I       
sold my stocks in some Asian markets, such as Singapore and Malaysia, too       
soon, probably about two months before they hit their peak. I should note,      
however, that as a result, the fund was out of those markets before they        
began falling dramatically in 1994. I also regret not dropping the fund's       
European financial stocks, such as National Westminster Bank, earlier           
because their prices dropped very quickly.                                      
Q. WHAT DO YOU THINK SHAREHOLDERS CAN EXPECT GOING FORWARD?                     
A. In general, I expect 1994 to be a fine year. If the Japanese economy         
improves, even slightly, and the yen stays where it is, many companies will     
profit from their cost-cutting efforts. I have similar expectations for         
Europe. Given the measures many European companies have taken to reduce         
expenses and an expected moderate economic environment, I think European        
companies may become increasingly profitable.                                   

FUND FACTS                                                                      
GOAL: to increase the value of the fund's                                       
shares by investing mainly in stocks in                                         
Europe, the Far East, and the Pacific Basin                                     
START DATE: December 4, 1984                                                    
SIZE: as of April 30, more than $1.9 billion                                    
MANAGER: John Hickling, since January 1993;                                     
manager Advisor Overseas, since February                                        
1993; VIP: Overseas, since January 1993;                                        
Fidelity Japan Fund, since May 1993; previously                                 
managed Fidelity Europe, International Growth                                   
and Income, International Opportunities (now                                    
Emerging Markets), and Pacific Basin funds.                                     
(checkmark)                                                                     
JOHN HICKLING ON PICKING STOCKS:                                                
"I tend to be a bottom up investor. That means I                                
usually invest in specific companies I expect to                                
perform well, instead of certain countries or regions                           
that look good. To make sound decisions about                                   
companies, I try to visit as many of them as I can.                             
And if I can't go there, a lot of companies'                                    
representatives visit us in the United States. In                               
addition to me, Fidelity has about 50 analysts                                  
traveling around the globe and meeting with                                     
companies.                                                                      
"When I visit a country, I try to meet with at least four                       
companies a day. At the end of the week, I come                                 
away with a great idea of what's happening in the                               
country. You become totally immersed in the                                     
companies you visit and get a great overview of the                             
country's economic outlook. That's because you're                               
talking to the guys on the front line of the economy -                          
the people who make the decisions about a                                       
company's inventory, production, purchasing and                                 
costs - not an economics professor in an ivory                                  
tower.                                                                          
"In Japan, company meetings may be even more                                    
important because there isn't as much written                                   
information - or formal disclosure - as you have                                
access to in most western companies. Much like                                  
other Asian countries, Japan is very much what I call                           
a `relationship market,' and it also is a much more                             
formal society. You can't just walk into a company                              
cold and expect to get information. On the other                                
hand, if you've been meeting with a company for                                 
years, Japanese business people tend to speak with                              
you freely. That's why it's important that Fidelity has                         
an established presence in Japan."                                              
(bullet)  The fund's holdings in cash and short-term                            
investments are up substantially from six months                                
ago as the fund shifted to cash as a defensive                                  
measure.                                                                        
(bullet)  The fund was big on oil companies, such as                            
French companies Elf Aquitaine and Total, which                                 
were inexpensive on a cash flow basis but had high                              
yields. Cash flow is the amount of money a company                              
has left over after capital expenditures and taxes.                             
British Petroleum in the U.K. and Petrofina in                                  
Belgium also turned in solid performances.                                      
OVERSEAS                                                                        
INVESTMENT CHANGES                                                              

GEOGRAPHIC DIVERSIFICATION                                                      
AS OF APRIL 30, 1994                                                            

Australia 2.0%                                                                  
United States 16.4%                                                             
Row: 1, Col: 1, Value: 16.4                                                     
Row: 1, Col: 2, Value: 8.800000000000001                                        
Row: 1, Col: 3, Value: 5.7                                                      
Row: 1, Col: 4, Value: 3.7                                                      
Row: 1, Col: 5, Value: 4.7                                                      
Row: 1, Col: 6, Value: 13.5                                                     
Row: 1, Col: 7, Value: 5.1                                                      
Row: 1, Col: 8, Value: 20.5                                                     
Row: 1, Col: 9, Value: 5.4                                                      
Row: 1, Col: 10, Value: 7.3                                                     
Row: 1, Col: 11, Value: 6.9                                                     
Row: 1, Col: 12, Value: 2.0                                                     
France 6.9%                                                                     
Germany 7.3%                                                                    
United                                                                          
Kingdom 8.8%                                                                    
Italy 5.4%                                                                      
Switzerland 5.7%                                                                
Japan 20.5%                                                                     
Sweden 3.7%                                                                     
Spain 4.7%                                                                      
Other 13.5%                                                                     
Netherlands 5.1%                                                                
AS OF OCTOBER 31, 1993                                                          
United States 9.5%                                                              
Australia 3.1%                                                                  
Row: 1, Col: 1, Value: 9.5                                                      
Row: 1, Col: 2, Value: 12.9                                                     
Row: 1, Col: 3, Value: 8.6                                                      
Row: 1, Col: 4, Value: 2.7                                                      
Row: 1, Col: 5, Value: 4.9                                                      
Row: 1, Col: 6, Value: 16.6                                                     
Row: 1, Col: 7, Value: 5.4                                                      
Row: 1, Col: 8, Value: 18.1                                                     
Row: 1, Col: 9, Value: 4.9                                                      
Row: 1, Col: 10, Value: 8.0                                                     
Row: 1, Col: 11, Value: 5.3                                                     
Row: 1, Col: 12, Value: 3.1                                                     
France 5.3%                                                                     
United                                                                          
Kingdom 12.9%                                                                   
Germany 8.0%                                                                    
Italy 4.9%                                                                      
Switzerland 8.6%                                                                

Japan 18.1%                                                                     
Sweden 2.7%                                                                     
Spain 4.9%                                                                      
Netherlands 5.4%                                                                
Other 16.6%                                                                     
ASSET ALLOCATION                                                                
                % OF FUND'S    % OF FUND'S
                INVESTMENTS    INVESTMENTS
                                6 MONTHS AGO

Stocks                             81.6           87.6                          

Bonds                              2.0            2.9                           

Short-term and other investments   16.4           9.5                           

TOP TEN STOCKS                                                                  
                                    % OF FUND'S    % OF FUND'S
                                    INVESTMENTS    INVESTMENTS
                                                    6 MONTHS AGO

Stet (Societa Finanziaria Telefonica Spa)                                       
(Italy, Telephone Services)                                                     
                            1.8            1.9

Bayer AG                                                                        
(Germany, Chemicals & Plastics)          1.2            1.0                 

Hitachi Ltd.                                                                    
(Japan,  Electronics)                        1.2            1.1                 

Hoechst AG Ord.                                                                 
(Germany, Chemicals & Plastics)          1.1            0.3                 

Ciba-Geigy AG (Reg.)                                                            
(Switzerland, Chemicals & Plastics)      1.1            0.2                 

Toshiba Corp.                                                                   
(Japan, Electrical Equipment)                1.0            0.1                 

Toyota Motor Corp.                                                              
(Japan, Autos, Tires, & Accessories)     1.0            0.8                 

Peugeot SA Ord.                                                                 
(France, Autos, Tires, & Accessories)    1.0            -                   

Holderbank Financiere AG PC (Bearer)                                            
(Switzerland, Banks)                                                            
                            1.0            0.6

Telefonica de Espana SA Ord.                                                    
(Spain, Telephone Services)                  1.0            1.0                 

TOP TEN INDUSTRIES                                                              
                        % OF FUND'S    % OF FUND'S
                        INVESTMENTS    INVESTMENTS
                                        6 MONTHS AGO

Finance                                17.5           38.8                      

Durables                               12.6           5.8                       

Basic Industries                       11.4           5.4                       

Utilities                              7.8            10.4                      

Technology                             7.6            5.6                       

Construction & Real Estate         4.4            4.9                       

Industrial Machinery & Equipment   3.8            3.1                       

Energy                                 3.6            2.7                       

Transportation                         3.0            1.7                       

Services                               2.4            2.8                       

OVERSEAS                                                                        
INVESTMENTS APRIL 30, 1994 (UNAUDITED)                                          

Showing Percentage of Total Value of Investment in Securities                   

COMMON STOCKS - 76.8%                                                           
SHARES VALUE (NOTE 1)                                                         
ARGENTINA - 0.1%                                                                
YPF Sociedad Anonima sponsored ADR                                              
representing Class D shares  83,500 $ 2,066,625  98424510                     
AUSTRALIA - 2.0%                                                                
Ampolex Ltd. Ord.   1,631,500  5,134,853  03212792                              
Brambles Industries  404,000  4,167,111  10599010                               
FAI Insurance Ltd. Ord.  3,866,800  2,655,293  30239330                         
Hazelton Airlines Ltd.   721,400  1,444,849  42199522                           
Lend Lease Corp. Ltd.   190,000  2,321,291  52599292                            
Pioneer International Ltd.   966,700  1,991,460  72371110                       
TNT Ltd. (b)  3,141,200  4,808,360  93599292                                    
Westpac Banking Corp.   4,924,181  16,730,791  96121410                         
39,254,008                                                                  
AUSTRIA - 0.6%                                                                  
Austrian Airlines/Oster Luftve  4,400  753,691  05299A22                        
Mayr Melnhof Karton AG (c)  33,000  2,107,682  57847192                         
OEMV AG  48,800  4,099,746  67399592                                            
Steyr Daimler Puch AG  83,500  1,746,546  86099322                              
Verbund Gesellschaft  46,000  2,450,958  92299999                               
11,158,623                                                                  
BELGIUM - 1.1%                                                                  
Delhaize  137,700  5,515,025  24650010                                          
Petrofina SA  9,200  2,879,510  71648510                                        
Solvay  27,505  13,386,979  83425810                                            
21,781,514                                                                  
BERMUDA - 0.2%                                                                  
Consolidated Electric Power Asia Ltd.                                           
sponsored ADR (c)  67,400  968,875  20855210                                  
Jardine Strategic Holdings Ord.   894,500  3,277,063  47199020                  
4,245,938                                                                   
BRAZIL - 0.7%                                                                   
Coteminas PN  4,900,000  1,328,390  22199692                                    
Telebras PN (Pfd. Reg.)  344,286,800  12,413,994  95499792                      
13,742,384                                                                  
CANADA - 0.6%                                                                   
Abitibi-Price, Inc.   274,700  3,253,209  00368010                              
Noranda, Inc.   460,700  8,038,178  65542210                                    
11,291,387                                                                  
FINLAND - 0.8%                                                                  
Amer Group Ltd. Class A  221,900  5,716,883  02351210                           
Huhtamaki Ord.   83,900  3,336,295  44499392                                    
Kansallis-Osake-Pankki  322,600  728,740  48199210                              
Outokumpu OY Class A (b)  270,100  4,346,652  69099992                          
Repola OY  65,200  1,158,798  75999A92                                          
Unitas Bank Ltd. B Free shares  109,200  291,529  90499123                      
15,578,897                                                                  
FRANCE - 6.5%                                                                   
Accor SA  63,700  8,286,179  00439991                                           
Assurances Generales (Reg.)  32,400  3,109,438  04557510                        
BNP Ord.   221,520  10,390,845  05599996                                        
Bail Investissement (b)  7,900  1,354,365  05699092                             
Club Mediterranee  3,700  280,937                                               
Credit Lyonnais CI  31,900  3,117,833  22799392                                 
Elf Aquitaine  207,400  15,197,604  28627199                                    
Financiere Bank de Suez Cie  105,900  6,118,542  31799110                       
GAN (Groupe des Assur. Natl.)  89,900  6,975,274  36599792                      
Klepierre SA (b)  3,600  402,121  49899822                                      
Lafarge Coppee  187,400  15,202,651  50586310                                   
Paribas SA (Cie Financiere) Class A (b)  57,600  4,415,186  73999192            

SHARES VALUE (NOTE 1)                                                         

Pechiney SA CIP  32,150 $ 2,284,252  70599310                                   
Peugeot SA Ord. (b)  124,400  19,677,978  71682510                              
Plastic Omnium Cie  28,850  3,803,835  72799622                                 
Rhone Poulenc SA Class A  292,750  8,014,667  76242695                          
Salomon SA  3,600  1,342,524  93099292                                          
Skis Rossignol SA  710  253,482  83099C22                                       
Sophia SA  12,375  1,058,590  84199C22                                          
Total Compagnie Francaise des Petroles                                          
Class B  175,700  10,216,561  20434510                                        
Unibail  47,340  4,267,126  90499592                                            
Vallourec  51,500  2,990,059  92017610                                          
128,760,049                                                                 
GERMANY - 6.6%                                                                  
Allianz Versich Holdings Ord.                                                   
(Reg.) (b)  3,350  5,241,717  01882495                                        
BASF AG  26,900  5,355,605  05526230                                            
Bayer AG  97,700  23,261,342  07273010                                          
Bayerische Motor Werke (BMW) (b)  19,500  10,622,430  05528310                  
Computer AG (b)  8,600  3,847,642  20599492                                     
Continental Gummi-Werke AG (b)  65,000  11,388,755  21199010                    
Deutsche Bank AG  33,300  15,727,908  25152592                                  
Hoechst AG Ord.   101,300  22,323,972  43439010                                 
Kolbenschmidt AG  9,300  1,326,965  50799792                                    
Sixt AG Ord. (b)  6,035  1,988,558  83002199                                    
Thyssen AG Ord.   87,400  15,128,549  88629110                                  
Veba Vereinigte Elektrizetaets &                                            
Bergwerks AG Ord.   42,430  13,183,057  92239110                              
129,396,500                                                                 
GHANA - 0.1%                                                                    
Ashanti Goldfields GDR (c)  49,000  1,078,000                                   
HONG KONG - 0.5%                                                                
Dairy Farm International Holdings Ltd.                                          
Ord.   1,196,000  1,749,557  23385910                                         
Dickson Concept  3,952,000  2,660,368  25399210                                 
Hong Kong Land Holdings Ltd.   1,311,000  3,682,822  43858292                   
Jardine Matheson & Co. Ltd. Ord.   316,000  2,065,841  47111510             
10,158,588                                                                  
INDIA - 0.0%                                                                    
ITC Ltd. GDS (warrants) (b)(c)  19,000  142,500  45031811                       
INDONESIA - 0.6%                                                                
Astra International (For. Reg.)  110,000  836,527  04699894                     
Bank International Indonesia Ord. (b)  1,556,300  4,510,422  06199B92           
Jakarta International Hotels &                                              
Development Ord.   3,017,400  4,337,482  47399693                             
Sampoerna, Hanjaya Mandala  400,000  3,060,468  82299892                        
12,744,899                                                                  
IRELAND - 0.4%                                                                  
Bank of Ireland U.S. Holdings, Inc.   727,000  2,989,737  06278793              
Fyffes PLC  1,306,100  1,922,553  34999G22                                      
Independent  381,750  1,911,709  45399E92                                       
Smurfit (Jeff) Group PLC  356,100  1,729,222  84699793                          
8,553,221                                                                   
ITALY - 2.0%                                                                    
Alitalia (Linee Aeree Italy) Class A  3,333,000  3,110,789  01608910            
Assicurazioni Generali Spa  478,200  13,962,474  04542910                       
Montedison Spa Ord.   6,337,300  6,314,422  61237610                            
SAI (Soc. Assicur Industriale)  355,000  5,160,255  78399110                    
SIP Spa  3,031,600  9,071,517  78401792                                         
Safilo (Sta Azionaria Fab) Spa  371,800  2,203,986  78499999                    
39,823,443                                                                  
COMMON STOCKS - CONTINUED                                                       
SHARES VALUE (NOTE 1)                                                         
JAPAN - 20.5%                                                                   
ADO Electronic Industrial Co.   76,000 $ 2,537,575  00699992                    
Advantest Corp.   143,000  4,859,156  00799010                                  
Alpine Electronics, Inc. (warrant #1)  150  367,500  02099193                   
Alps Electric Co. Ltd.   271,000  3,790,209  02199292                           
Amadasonoike Co. Ltd.   219,000  1,660,889  02499492                            
Aoyama Trading Co. Ord.   105,000  4,860,633  03799092                          
Asahi Glass (warrants) (b)  200  200,000  04339392                              
Autobacs Seven Co. Ltd.   34,700  4,443,022  05299392                           
Bridgestone Corp.   441,000  6,602,189  10844110                                
Canon, Inc.   984,000  15,991,328  13780199                                     
Canon, Inc. (warrants) (b)  150  150,000  13800695                              
Casio Computer Co. Ltd. Ord.   224,000  2,779,869  14761893                     
Chudenko Corporation  43,000  1,655,964  17123410                               
Cosmo Oil Company Ltd.   306,000  2,519,610  22199092                           
Daiwa House Industry Co. Ltd.   72,000  1,085,000  23406299                     
Daiwa House Industry Co. Ltd.                                                   
(warrants) (b)   75  75,000  23406297                                         
East Japan Railway Ord. (b)  1,100  5,222,102  27399722                         
Fujitsu Ltd. (b)  1,274,000  12,798,973  35959010                               
Futaba Industrial Co. Ltd. (b)  123,000  2,301,783  38299192                    
Hanshin Department Store  88,000  693,391  41199292                             
Hitachi Ltd.   2,409,000  22,777,890  43357810                                  
Hitachi Maxell Ltd.   514,000  10,378,215  43358990                             
Honda Motor Co. Ltd.   622,000  10,292,128  43812810                            
Ishihara Sangyo Kaisha Ltd.   657,000  2,763,112  46427899                      
Izumi Co. Ord.   86,000  2,066,779  46399292                                    
Japan Airlines Co. Ltd.   623,000  4,356,645  47103420                          
Joshin Denki Co. Ltd. Ord.   178,000  2,822,614  48199999                       
Kawasaki Steel Corp.   1,058,000  3,866,027  48636810                           
Komatsu Ltd. Ord.   693,000  6,197,617  50045899                                
Kyocera Corporation  26,000  1,638,925  50155610                                
Marubeni Corp. (b)  662,000  3,384,005  57381010                                
Marukyo Corp.   55,000  1,950,162  57899792                                     
Matsushita Electric Industrial Co. Ltd.   779,000  12,813,257  57687910         
Minebea Co.   924,000  6,188,518  60299392                                      
Mitsubishi Heavy Industry  583,000  3,875,947  60699310                         
Mitsubishi Petro Chemical  464,000  3,107,654  60690910                         
Mitsubishi Trust & Banking  682,000  10,075,841  60699410                   
Mitsui Petrochemical Industries, Inc. (b)  385,000  3,090,464  60691110         
Mitsui Trust and Banking  206,000  2,231,853  60684699                          
Murata Manufacturing Co. Ord.   403,000  17,464,791  62699110                   
NGK Spark Plug Co. (warrants) (b)  150  465,000  64499922                       
Nichido Fire & Marine Insurance Co.   710,000  5,860,141  65399920          
Nikko Securities  269,000  3,232,344  65399010                                  
Nippon Sheet Glass (warrants) (b)  350  153,125  65461393                       
Nippon Shinpan Ltd.   226,000  2,136,905  65461710                              
Nippon Telegraph & Telephone Ord. (b)  600  5,212,253  65462492             
Nissan Motor Co. Ltd. Ord.   824,000  6,979,610  65474491                       
Nomura Securities Co. Ltd.   702,000  15,280,413  65536130                      
Oji Paper Ltd. (b)  359,000  3,429,825  67811810                                
Orix Corp.   441,000  16,809,513  68616710                                      
Pioneer Electronic Corp.   134,000  3,444,696  72365710                         
Rohm Co. Ltd.   245,000  9,700,581  77536110                                    
Sanwa Bank  183,000  3,965,330  80399410                                        
Sharp Corp.   246,000  4,022,063  81989991                                      
Sharp Corp. (warrants #1) (b)  900  522,752  81989994                           
Sony Corp.   278,700  15,811,208  83569999                                      
Sumitomo Realty & Development Co. Ltd.   479,000  3,113,759  86562310       
Sumitomo Rubber Industries  187,000  1,823,401  86699892                        
Sumitomo Trust & Banking Co.   414,000  5,708,658  86599310                 
Suzuki Motor Corp.   443,000  5,890,376  86958592                               
TDK Corp.   397,000  17,908,599  87235110                                       
Tokio Marine & Fire Insurance Co. Ltd.                                      
(The)  675,000  8,642,767  88909099                                           
Tokyo Electron Ltd.   75,000  2,385,994  89499999                               

SHARES VALUE (NOTE 1)                                                         

Tokyo Electron Ltd. (warrant #2) (b)  500 $ 262,500  89499922                   
Tokyo Style Co. Ltd.   659,000  12,007,784  88999410                            
Toppan Printing (warrants) (b)  200  90,000  89074792                           
Toshiba Corp.   2,649,000  20,089,937  89149310                                 
Toyobo Co.   713,000  3,167,175  90899392                                       
Toyota Motor Corp.  1,007,000  19,737,321  89399999                             
Yamaha Motor Co. Ltd. (b)  22,000  195,016  98456092                            
403,985,683                                                                 
KOREA (SOUTH) - 0.7%                                                            
Cho Hing Bank Co. Ltd.   79,000  821,592  17099E22                              
Korea Electric Power Corp.   285,000  9,879,901  50099B92                       
Korea First Securities Co. (b)  5,100  104,816  50099K22                        
Kyungki Bank Ltd. (b)  135,000  1,462,486  61999922                             
Seoul Securities Co. (b)  120,870  2,124,989  83599P22                          
14,393,784                                                                  
LUXEMBOURG - 0.3%                                                               
Arbed SA  35,100  5,042,734  03899030                                           
MALAYSIA - 0.6%                                                                 
Ekran BHD Ord. (b)  313,000  2,653,335  28299792                                
KL Industries Holdings BHD  570,000  898,274  49799B92                          
Magnum Corp. BHD  960,000  2,258,573  55999392                                  
Resorts World BHD  497,000  2,784,000  76199592                                 
Telekom Malaysia BHD  324,000  2,419,898  94099892                              
Time Engineering BHD (b)  317,000  1,000,319  93099592                          
12,014,399                                                                  
MEXICO - 1.0%                                                                   
Grupo Dina (Consorcio G) ADR (b)  117,200  1,508,950  21030610                  
Grupo Financiero Bancomer SA de CV                                              
sponsored ADR, Series C (c)  189,800  4,673,825  40048610                     
Telefonos de Mexico SA sponsored ADR                                            
representing shares Ord. Class L  230,400  13,564,800  87940378               
19,747,575                                                                  
NETHERLANDS - 5.1%                                                              
Akzo Nobel NV Ord.   135,400  16,315,099  01019910                              
DSM NV  122,400  9,124,783  23332H92                                            
Fokker Aircraft Ord.   79,500  710,854  34419010                                
Frans Maas Groep NV (Koninklj)  90,600  2,464,476  35399322                     
Hoogovens en Staalfabrieken (b)  128,800  5,009,082  43888410                   
International Nederlanden Groep CVA  223,000  9,321,195  46099892               
KBB (Kon Bijenkorf Beheer) NV:                                                  
Ord.   56,700  3,246,544  48130092                                            
(right)  56,700  24,433  48130095                                             
KLM Royal Dutch Airlines Ord. (b)  145,100  4,181,444  48251620                 
Oce Van Der Grinten NV  288,500  12,680,637  67462710                           
Philips Electronics (b)  623,300  18,230,646  71833799                          
Pirelli Tyre Holdings NV Ord. (b)  1,788,000  17,817,402  72499092              
Wereldhave NV  33,600  1,994,463  95199E22                                      
101,121,058                                                                 
NEW ZEALAND - 0.2%.                                                             
Fletcher Challenge Ltd. (Reg.) (b)  1,665,500  3,240,797  33999592              
NORWAY - 1.8%                                                                   
Bergesen Group:                                                                 
Class A  168,800  3,745,301  08399010                                         
Class B  347,200  7,703,604  08399011                                         
Christiania Bank Free shares Ord. (b)  1,760,000  3,548,934  17100792           
Den Norske Bank Class A                                                         
Free shares (b)  1,267,700  3,423,056  25299792                               
Norsk Hydro AS ADR (b)  66,200  2,242,525  65653160                             
Norske Skogindustrier AS:                                                       
A Free shares (b)  127,200  3,017,541  66499594                               
(rights) (b)  127,200  33,726  66499596                                       
COMMON STOCKS - CONTINUED                                                       
SHARES VALUE (NOTE 1)                                                         
NORWAY - CONTINUED                                                              
Olav Thon Eiendomsselskp Ord.   81,300 $ 1,179,889  67941099                    
Orkla AS Class B (non-vtg.)  152,400  4,827,563  39299192                       
Unitor AS  286,300  5,713,137  91699392                                         
35,435,276                                                                  
SINGAPORE - 0.7%                                                                
Neptune Orient Lines Ltd. (b)  9,003,000  13,143,480  64099610                  
Van Der Horst Ltd.   244,000  1,161,233  92099C22                               
14,304,713                                                                  
SPAIN - 4.7%                                                                    
Acerinox SA (Reg.)  35,775  3,744,251  00499192                                 
Argentaria Corp. Bancaria de Esp  108,600  4,719,109  21991392                  
Banco Bilbao Vizcaya SA Ord. (Reg.)  472,900  11,293,396  05945891              
Banco Intercontinental Espanol  100,750  8,980,501  24699592                    
Corporacion Mapfre International Reas                                           
(Reg.) (b)  188,250  7,984,456  16899192                                      
Empresa Nacional de Celulosa SA  92,300  1,600,896  29299N22                    
FOCSA (Fomento Construciones                                                    
Contrata)  43,975  4,883,389  34418599                                        
FOCSA (Fomento Construciones                                                    
Contrata) (c)  16,000  1,776,787  34418593                                    
Iberdrola SA  729,500  5,239,940  45499892                                      
Repsol SA:                                                                      
Ord. (b)  359,700  11,996,678  76026T10                                       
sponsored ADR  46,600  1,537,800  76026T20                                    
Telefonica de Espana SA Ord.   1,422,400  19,335,138  87938210                  
Union Electrica Fenosa  1,513,200  7,575,836  90659510                          
Uralita SA (b)  238,450  2,479,704  91799310                                    
Vallehermoso SA  25,583  494,082  91899224                                      
93,641,963                                                                  
SWEDEN - 3.7%                                                                   
ASG AB Class B Free Shares Ord.   84,200  1,437,030  16599C22                   
Aktiebolaget Electrolux  251,700  13,415,894  01019810                          
Frontline (b)  453,000  1,219,163  35999F22                                     
ICB Shipping Class B (b)  108,333  1,308,456  44999B92                          
Investor AB B Free shares  114,700  2,815,888  46199A92                         
Marieberg Tidnings A Free shares (b)  84,000  2,216,592  56799392               
SKF AB Ord. (b)  660,600  13,615,970  78437530                                  
Scribona AB B Free shares  17,900  117,499  81199B92                            
Skandia Forsikring (rights)  114,600  130,893  83055592                         
Skandia International Holding Co. AB                                            
ADR  114,600  2,061,178  83055510                                             
Skandinaviska Enskilda Banken Class A                                           
Free shares  1,178,600  8,123,371  88099222                                   
Skanska Class B (b)  487,200  12,024,734  93899392                              
Volvo Aktiebolaget Class B  160,700  15,000,157  92885630                       
73,486,825                                                                  
SWITZERLAND - 5.7%                                                              
Adia SA (Bearer)  46,800  8,138,260  00699793                                   
Alusuisse Lonza (Reg.)  33,611  16,288,693  02239994                            
Baloise Holding (Reg.) (b)  6,700  12,271,674  05899195                         
C.S. Holdings (Reg.) (b)  135,600  11,548,445  17599795                         
Ciba-Geigy AG:                                                                  
(Reg.)  36,665  21,871,222  17199492                                          
(warrants) (b)  1,480  10,548  17199494                                       
Fischer (Georg) AG (Reg.)  23,300  4,616,328  33771192                          
Globus Magazine Part. Cert.   9,400  6,263,764  37957792                        
Holderbank Financiere AG PC (Bearer)  28,325  19,379,254  43479593              
Surveillance, Societe Generale (Bearer) (b)  1,690  2,541,353  86901193         
Swiss Bank Corp. (Bearer) (b)  31,050  8,674,482  87083610                      
Von Roll AG (Reg.)  17,350  1,854,755  94599094                                 
113,458,778                                                                 

SHARES VALUE (NOTE 1)                                                         
THAILAND - 0.2%                                                                 
Phatra Thanakit (For. Reg.)  11,300 $ 384,146  71799593                         
Ruam Pattana Fund II (For. Reg.)  2,683,000  1,571,648  76999523                
Ruang Khao Unit Trust (For. Reg.) (b)  2,633,900  1,647,504  77399393           
3,603,298                                                                   
UNITED KINGDOM - 8.8%                                                           
Avon Rubber  147,800  1,356,934  05399010                                       
BET Public Ltd. Co. Ord.   4,570,000  8,599,369  05538H10                       
Barclays PLC Ord.   1,396,700  10,809,410  06738E10                             
Bass PLC Ord.   753,400  6,505,293  06990492                                    
British Petroleum PLC Ord.   1,296,300  7,593,142  11088910                     
British Steel PLC Ord.   6,075,300  14,059,399  11101510                        
British Vita Ord.   1,115,900  5,198,677  11199192                              
English China Clay PLC  1,248,800  9,153,117  29321792                          
Forte PLC (b)  1,521,100  5,470,606  34999592                                   
General Electric PLC Ord.   1,165,100  5,357,165  36963940                      
Great Universal Stores PLC Ord. Class A  658,400  5,994,732  39133420           
Ladbroke Group PLC Ord.   4,086,800  11,504,179  50572799                       
Lloyds Abbey Life  589,200  3,384,212  53801099                                 
London International Group  783,900  1,249,051  54183310                        
Midlands Electricity PLC  856,200  7,405,916  59780293                          
National Westminster Bank PLC Ord.  918,080  6,290,234  63853930                
North West Water Ord.   721,600  5,288,989  67299195                            
RTZ Corp. PLC Ord. (b)  273,400  3,509,923  74974K50                            
Rolls Royce Ltd. Ord.   1,600,399  4,942,208  77577910                          
Royale Insurance Co. Ltd.   825,500  3,294,595  78074910                        
Sainsbury J. PLC Ord.   501,200  2,829,324  78710310                            
Sedgwick Group  307,400  918,966  81482610                                      
Shanks & McEwan Group PLC  704,200  1,143,431  81999294                     
Taylor Woodrow PLC  1,177,500  2,644,547  87667410                              
Trafalgar House PLC Ord.   1,020,900  1,626,682  89270710                       
Vickers PLC Ord. units  5,188,775  15,747,932  92549310                         
Vodafone Group PLC  490,000  4,041,329  92857T92                                
Whitbread Class A  1,346,600  11,116,452  96341499                              
Willis Coroon PLC Ord. (b)  1,760,900  6,145,866  97062410                      
173,181,680                                                                 
TOTAL COMMON STOCKS                                                             
(Cost $1,237,442,272) . . . . . . . . . . . . . . . . . . . .                 
1,516,435,139                                                                   
NONCONVERTIBLE PREFERRED STOCKS - 4.8%                                          
AUSTRIA - 0.6%                                                                  
Creditanstaldt Bank (b)  160,500  9,435,895  22539210                           
Maculan Holding Ord.   18,300  1,762,660  55699594                              
11,198,555                                                                  
GERMANY - 0.7%                                                                  
Boss (Hugo) AG  4,250  2,703,144  44451094                                      
FAG Kugelfischer Georg Schaef  35,200  5,022,491  50105492                      
Porsche AG Ord.  10,300  5,436,457  73380110                                    
13,162,092                                                                  
ITALY - 3.4%                                                                    
Banco Ambro Veneto N/C Risp  2,320,900  4,873,844  06399592                     
Fiat Spa Priv. cumulative  5,409,600  15,061,462  31562120                      
Gilardini Risp Spa  460,400  926,187  40099392                                  
SAI (Sta. Assicur. Industriale) N/C Risp  1,190,200  9,217,016  78399192        
SIP (Societa Ital. Per L'Eser) Spa Di Risp                                      
N/C Ord.   350,000  866,323  78401796                                         
Stet (Societa Finanziaria                                                       
Telefonica Spa)  10,868,400  35,571,730  85982592                             
Unicem Di Risp  368,900  1,884,367  91199792                                    
68,400,929                                                                  
NONCONVERTIBLE PREFERRED STOCKS - CONTINUED                                     
SHARES VALUE (NOTE 1)                                                         
KOREA (SOUTH) - 0.1%.                                                           
Korea First Securities Co. (b)  67,462 $ 1,261,205  50099K23                    
TOTAL NONCONVERTIBLE PREFERRED STOCKS                                           
(Cost $58,784,694)   94,022,781                                               
CORPORATE BONDS - 0.1%                                                          
MOODY'S RATINGS PRINCIPAL                                                     
AMOUNT (A)                                                                  
CONVERTIBLE BONDS - 0.1%                                                        
GRAND CAYMAN  - 0.1%                                                            
Bangkok Land euro 4 1/2%,                                                       
10/13/03 (c) - $ 600,000  531,000  06099LAA                                   
CTII Overseas Finance Ltd. euro                                                 
4 1/4%, 11/18/98 (c) -  605,000  490,050  126995AA                            
Peregrine Investment Financial                                                  
Cayman Ltd. 4 1/2%,                                                           
12/1/00 (c) -  1,200,000  954,000  693393AA                                 
TOTAL CORPORATE BONDS                                                           
(Cost $2,405,000)   1,975,050                                                 
GOVERNMENT OBLIGATIONS (F) - 1.9%                                               
ARGENTINA - 0.5%                                                                
Argentina Republic BOCON                                                        
4%, 4/1/01 (d) B1  14,720,251  10,298,435  039995AF                           
BRAZIL - 0.5%                                                                   
Brazil Federative Republic IDU                                                  
euro 4.3125%, 1/1/01 (d)  B2  13,315,500  9,670,382  1057569E                 
DENMARK - 0.5%                                                                  
Danish Government Bullet 7%,                                                    
12/15/04 Aa1 DKK 62,500,000  9,504,845  249998AV                              
FRANCE - 0.4%                                                                   
French Government Strips                                                        
0%, 4/25/23 Aaa FRF 420,000,000  8,618,232  351996BL                          
TOTAL GOVERNMENT OBLIGATIONS                                                    
(Cost $40,691,887)   38,091,894                                               
INDEXED SECURITIES - 0.6%                                                       

UNITED STATES OF AMERICA - 0.6%                                                 
Bankers Trust Company 0%,                                                       
1/31/95 (coupon inversely                                                     
indexed to STIBOR and                                                         
principal indexed to value of                                                 
2-year Swedish securities,                                                    
both multiplied by 9) (e)   1,000,000  569,500  06699DAC                      
Bayerische Landesbank cert. of                                                  
dep. 6.2675%, 1/27/95                                                         
(coupon inversely indexed                                                     
to HELIBOR and principal                                                      
indexed to value of 2-year                                                    
Finnish securities, both                                                      
multiplied by 8) (e)   8,300,000  5,121,100  072999AU                         

PRINCIPAL VALUE (NOTE 1)                                                    
AMOUNT (A)                                                                  

Citibank Nassau:                                                                
0%, 1/31/95 (coupon                                                           
inversely indexed to STIBOR                                                 
and principal indexed to                                                    
2-year Swedish securities,                                                  
both multiplied by 9) (e)  $ 700,000 $ 412,860  223991BT                    
4 5/8%, 7/30/96 (inversely                                                    
indexed to 1-year SEK                                                       
swap rate, multiplied                                                       
by 10) (d)   1,125,000  883,462  223991AH                                   
ITT Corp. 3.66%, 6/27/94                                                        
(inversely indexed to 1-year                                                  
SEK swap rate, multiplied                                                     
by 10)   5,000,000  4,800,500  4506799M                                       
TOTAL INDEXED SECURITIES                                                        
(Cost $16,125,000)   11,787,422                                               
REPURCHASE AGREEMENTS - 15.8%                                                   
MATURITY                                                                      
AMOUNT                                                                        
Investments in repurchase agreements                                            
(U.S. Treasury obligations), in a joint                                       
trading account at 3.56% dated                                                
4/29/94 due 5/2/94  $ 311,756,460  311,664,000                                
TOTAL INVESTMENT IN SECURITIES - 100%                                           
(Cost $1,667,112,853)  . . . . . . . . . . . . . . . . . . . .                
$1,973,976,286                                                                  
FORWARD FOREIGN CURRENCY CONTRACTS                                              
SETTLEMENT  UNREALIZED                                                      
DATE(S) VALUE GAIN/(LOSS)                                                   
CONTRACTS TO BUY                                                                
1,172,422,435 BEF 5/4/94 $ 34,366,702 $ 661,874                             
75,419,000 CHF 5/9/94  53,748,628  965,621                                  
79,820,931 DKK 5/16/94  12,304,070  281,759                                 
3,956,826,000 ESP 5/3/94  29,377,717  625,057                               
59,195,000 FIM 5/5/94  11,049,038  457,129                                  
73,880,000 NOK 5/2/94  10,308,574  221,328                                  
90,507,500 SEK 5/5/94  11,874,866  459,043                                  
TOTAL CONTRACTS TO BUY                                                          
(Payable amount $159,357,784) $ 163,029,595 $ 3,671,811                         
THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF TOTAL INVESTMENT IN            
SECURITIES - 8.3%                                                               
FORWARD FOREIGN CURRENCY CONTRACTS - CONTINUED                                  
SETTLEMENT  UNREALIZED                                                      
DATE(S) VALUE GAIN/(LOSS)                                                   
CONTRACTS TO SELL                                                               
1,172,422,435 BEF 5/4/94 $ 34,366,702 $ (1,797,150)                         
75,419,000 CHF 5/9/94  53,748,628  (1,847,202)                              
79,820,931 DKK 5/16/94  12,304,070  (540,441)                               
3,956,826,000 ESP 5/3/94  29,377,717  (1,591,505)                           
59,195,000 FIM 5/5/94  11,049,038  (377,504)                                
425,178,909 FRF 5/16/94  75,076,044  (2,941,532)                            
5,889,637,000 JPY 7/6/94  58,230,216  (1,230,216)                           
21,434,577 NLG 6/13/94  11,529,049  (113,226)                               
73,880,000 NOK 5/2/94  10,308,574  (433,549)                                
90,507,500 SEK 5/5/94  11,874,866  (547,978)                                
TOTAL CONTRACTS TO SELL                                                         
(Receivable amount $296,444,601) $ 307,864,904 $ (11,420,303)                   
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF TOTAL INVESTMENT IN           
SECURITIES - 15.6%                                                              
CURRENCY ABBREVIATIONS                                                          
BEF - Belgian franc                                                             
DKK - Danish krone                                                              
NLG - Dutch guilder                                                             
FIM - Finnish markka                                                            
FRF - French franc                                                              
JPY - Japanese yen                                                              
NOK - Norwegian krone                                                           
ESP - Spanish peseta                                                            
SEK - Swedish krona                                                             
CHF - Swiss franc                                                               
LEGEND                                                                          
1. Principal amount is stated in United States dollars unless otherwise         
noted.                                                                          
2. Non-income producing                                                         
3. 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 $12,722,719 or 0.6% of net       
assets.                                                                         
4. The coupon rate shown on floating or adjustable rate securities              
represents the rate at period end.                                              
5. Inverse floating rate security is a security where the coupon is             
inversely indexed to a floating interest rate multiplied by a specified         
factor. If the floating rate is high enough, the coupon rate may be zero or     
be a negative amount that is carried forward to reduce future interest          
and/or principal payments. The price may be considerably more volatile than     
the price of a comparable fixed rate security.                                  
6. For some foreign government obligations have not been rated by S&P       
or Moody's. The ratings listed are assigned to securities by FMR, the           
fund's investment adviser, based principally on S&P and Moody's ratings     
of the sovereign credit of the issuing government.                              
OTHER INFORMATION                                                               
Purchases and sales of securities, other than short-term securities,            
aggregated $650,869,056 and $496,426,949, 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 $3,822 for the period.                                               
INCOME TAX INFORMATION                                                          
At April 30, 1994, the aggregate cost of investment securities for income       
tax purposes was $1,667,315,363. Net unrealized appreciation aggregated         
$306,660,923, of which $342,407,559 related to appreciated investment           
securities and $35,746,636 related to depreciated investment securities.        
At October 31, 1993, the fund had a capital loss carryforward of                
approximately $46,417,000 which will expire on October 31, 2001.                

INDUSTRY DIVERSIFICATION                                                        
As a Percentage of Total Value of Investments                                   
Aerospace & Defense    0.3%                                                 
Basic Industries    11.4                                                        
Conglomerates   0.2                                                             
Construction & Real Estate   4.4                                            
Durables   12.6                                                                 
Energy   3.6                                                                    
Finance   17.5                                                                  
Government Obligations    1.9                                                   
Health   1.6                                                                    
Industrial Machinery & Equipment   3.8                                      
Media & Leisure   2.1                                                       
Nondurables   1.9                                                               
Precious Metals   0.1                                                           
Repurchase Agreements   15.8                                                    
Retail & Wholesale   2.0                                                    
Services    2.4                                                                 
Technology   7.6                                                                
Transportation   3.0                                                            
Utilities   7.8                                                                 
100.0%                                                                
OVERSEAS                                                                        
FINANCIAL STATEMENTS                                                            

STATEMENT OF ASSETS AND LIABILITIES                                             

                                                                · Download Table

                                                                       
                                                                       
APRIL 30, 1994 (UNAUDITED)                                             
ASSETS                                                                 
Investment in securities, at value                                     
(including repurchase agreements of $311,664,000) (cost $1,667,112,853)
$ 1,973,976,286                                                        
(Notes 1 and 2) - See accompanying schedule                            
Long foreign currency contracts held, at value (cost $159,357,784)     
(Note 2)163,029,595                                                    
Short foreign currency contracts                                       
$ (307,864,904                                                         
(Note 2))                                                              
Contracts held, at value                                               
Receivable for contracts held                                          
296,444,601      (11,420,303)                                          
Cash                                                                   
121,399                                                                
Receivable for investments sold                                        
12,880,917                                                             
Receivable for fund shares sold                                        
10,546,710                                                             
Dividends receivable                                                   
5,220,075                                                              
Interest receivable                                                    
916,851                                                                
Other receivables                                                      
15,417                                                                 
TOTAL ASSETS                                                           
2,155,286,947                                                          
LIABILITIES                                                            
Payable for foreign currency contracts held (Note 2)                   
159,357,784                                                            
Payable for investments purchased                                      
28,615,163                                                             
Payable for fund shares redeemed                                       
2,940,025                                                              
Accrued management fee                                                 
1,328,718                                                              
Other payables and accrued expenses                                    
1,308,601                                                              
TOTAL LIABILITIES                                                      
193,550,291                                                            
NET ASSETS                                                             
1,961,736,656                                                          
Net Assets consist of (Note 1)                                         
Paid in capital                                                        
1,647,091,794                                                          
Distributions in excess of net investment income                       
(14,895,486)                                                           
Accumulated undistributed net realized gain (loss) on investments      
30,425,407                                                             
Net unrealized appreciation (depreciation) on:                         
Investment securities                                                  
306,863,433                                                            
Foreign currency contracts                                             
(7,748,492)                                                            
NET ASSETS, for 67,780,950 shares outstanding                          
1,961,736,656                                                          
NET ASSET VALUE and redemption price per share ($1,961,736,656         
(divided by) 67,780,950 shares) (Note 4) $28.94                        
Maximum offering price per share (100/97.00 of $28.94) (Note 4)        
$29.84                                                                 

STATEMENT OF OPERATIONS                                                         

                                                        · Enlarge/Download Table

                                                                                               
 SIX MONTHS ENDED APRIL 30, 1994 (UNAUDITED)                                                   

INVESTMENT INCOME                                                                 $ 11,298,515 
Dividends                                                                                      

Interest                                                                           5,135,710   

                                                                                   16,434,225  

Less foreign taxes withheld (Note 1)                                               (911,587    
                                                                                  )            

 TOTAL INCOME                                                                      15,522,638  

EXPENSES                                                                                       

Management fee (Note 4)                                             $ 6,432,030                
Basic fee                                                                                      

 Performance adjustment                                              264,345                   

Transfer agent fees (Note 4)                                         2,608,135                 

Accounting fees and expenses                                         330,062                   
(Note 4)                                                                                       

Non-interested trustees' compensation                                4,909                     

Custodian fees and expenses                                          736,020                   

Registration fees                                                    99,284                    

Audit                                                                42,759                    

Legal                                                                11,508                    

Miscellaneous                                                        8,439                     

 TOTAL EXPENSES                                                                    10,537,491  

NET INVESTMENT INCOME                                                              4,985,147   

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTES 1 AND 2)                             
Net realized gain (loss) on:                                                                   

 Investment securities                                               78,583,929                

 Foreign currency contracts                                          (1,547,765    77,036,164  
                                                                    )                          

Change in net unrealized appreciation (depreciation) on:                                       

 Investment securities                                               58,545,163                

 Foreign currency contracts                                          (11,307,078   47,238,085  
                                                                    )                          

NET GAIN (LOSS)                                                                    124,274,249 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS                   $ 129,259,396

OTHER INFORMATION                                                                  $997,546    
Sales charges paid to FDC (Note 4)                                                             

 Accounting fees paid to                                                           $330,034    
 FSC (Note 4)                                                                                  


STATEMENT OF CHANGES IN NET ASSETS                                              

                                                                · Download Table

                                                                   
                                                                   
INCREASE (DECREASE) IN NET ASSETS                                  
SIX MONTHS         YEAR ENDED                                      
ENDED APRIL 30,    OCTOBER 31,                                     
1994               1993                                            
(UNAUDITED)                                                        
Operations                                                         
$ 4,985,147        $ 10,233,528                                    
Net investment income                                              
Net realized gain (loss) on investments                            
77,036,164         (49,776,636)                                    
Change in net unrealized appreciation (depreciation) on investments
47,238,085         370,524,952                                     
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS    
129,259,396        330,981,844                                     
Distributions to shareholders                                      
(13,783,657)       (11,187,669)                                    
From net investment income                                         
In excess of net investment income                                 
(9,769,269)        -                                               
From net realized gain                                             
-                  (75,938,524)                                    
 TOTAL  DISTRIBUTIONS                                              
(23,552,926)       (87,126,193)                                    
Share transactions                                                 
865,135,868        854,803,474                                     
Net proceeds from sales of shares                                  
Reinvestment of distributions                                      
22,885,934         84,813,750                                      
Cost of shares redeemed                                            
(522,657,933)      (494,651,306)                                   
Net increase (decrease) in net assets resulting                    
from share transactions                                            
365,363,869        444,965,918                                     
TOTAL INCREASE (DECREASE) IN NET ASSETS                            
471,070,339        688,821,569                                     
NET ASSETS                                                         
Beginning of period                                                
1,490,666,317      801,844,748                                     
End of period (including under (over) distribution                 
of net investment income of $(14,895,486) and                      
$ 1,961,736,656    $ 1,490,666,317                                 
$7,779,873, respectively)                                          
OTHER INFORMATION                                                  
Shares                                                             
Sold                                                               
30,931,925         35,327,981                                      
Issued in reinvestment of distributions                            
855,350            4,255,602                                       
Redeemed                                                           
(18,895,005)       (21,200,545)                                    
Net increase (decrease)                                            
12,892,270         18,383,038                                      
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF                     
THE FINANCIAL STATEMENTS.                                          

FINANCIAL HIGHLIGHTS                                                            

                                                                · Download Table

                                                                   
                                                                   
SIX MONTHS ENDED   YEARS ENDED OCTOBER 31,                         
APRIL 30, 1994                                                     
(UNAUDITED)                                                        
SELECTED PER-SHARE DATA                                            
1993       1992        1991      1990       1989                   
Net asset value, beginning of period                               
$ 27.16   $ 21.96    $ 26.92    $ 27.47    $ 26.30      $ 25.30    
Income from Investment Operations                                  
Net investment income                                              
.14        .27         .46       .54(sub section) .35   .30        
 Net realized and unrealized gain (loss) on investments            
2.07      7.40       (3.82)      .45             2.16   1.28       
Total from investment operations                                   
2.21     7.67        (3.36)      .99             2.51   1.58       
Less Distributions                                                 
 From net investment income                                        
(.25)    (.37)       (.44)      (.46)          (.21)   (.24)       
 In excess of net investment income                                
(.18)              -                         -             -       
 From net realized gain                                            
-         (2.10)     (1.16)     (1.08)         (1.13)   (.34)      
 Total distributions                                               
(.43)      (2.47)    (1.60)     (1.54)         (1.34)   (.58)      
Net asset value, end of period                                     
$ 28.94    $ 27.16   $ 21.96    $ 26.92        $ 27.47  $ 26.30    
TOTAL RETURN (dagger)                                              
8.27%      39.01%    (13.05)%   4.12%          9.58%     6.40%     
RATIOS AND SUPPLEMENTAL DATA                                       
Net assets, end of period (000s omitted)                           
$ 1,961,737 $ 1,490,666 $ 801,845 $ 969,436 $ 1,011,152  $ 876,567 
Ratio of expenses to average net assets                            
1.28%*     1.27%      1.52%     1.53%          1.26%     1.06%     
Ratio of net investment income to average net assets               
.61%*      1.00%      1.78%     2.19%          1.34%     1.06%     
Portfolio turnover rate                                            
67%*       64%        122%      132%            96%     100%       
* ANNUALIZED                                                       
(tri) AS OF NOVEMBER 1, 1991, THE FUND DISCONTINUED THE USE        
OF EQUALIZATION ACCOUNTING.                                        
(dagger) TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE    
AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.          
(sub section) INCLUDES $.08 PER SHARE FROM RECOVERY OF FOREIGN     
TAXES PREVIOUSLY WITHHELD ON DIVIDEND AND INTEREST PAYMENTS.       
(s diamond) INCLUDES AMOUNTS DISTRIBUTED FROM NET REALIZED GAINS ON
FOREIGN CURRENCY RELATED TRANSACTIONS TAXABLE AS ORDINARY INCOME.  


WORLDWIDE                                                                       
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). Worldwide has a      
3% sales charge, which has been waived through June 30, 1995.                   
CUMULATIVE TOTAL RETURNS                                                        
PERIODS ENDED                PAST 6   PAST 1   LIFE OF                          
APRIL 30, 1994               MONTHS   YEAR     FUND                             

WORLDWIDE                    9.40%    25.19%   46.26%                           

WORLDWIDE                                                                       
(INCL. 3% SALES CHARGE)     6.11%    21.44%   41.87%                          

Morgan Stanley World Index   2.57%    11.85%   27.20%                           

Average Global Fund          3.70%    18.64%   n/a                              

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms        
over a set period - in this case, six months, one year, or since the fund       
started on May 30, 1990. You can compare the fund's figures to the              
performance of the Morgan Stanley World index, a broad measure of the           
performance of stocks across the world, weighted by each country's market       
capitalization (or the total value of its outstanding shares). You can also     
compare the fund's performance to the average global fund, which reflects       
the performance of 99 funds with similar objectives tracked by Lipper           
Analytical Services. These benchmarks include reinvested dividends and          
capital gains, if any, and exclude the effects of sales charges.                
AVERAGE ANNUAL TOTAL RETURNS                                                    
PERIODS ENDED                PAST 1   LIFE OF                                   
APRIL 30, 1994               YEAR     FUND                                      

WORLDWIDE                    25.19%   10.18%                                    

WORLDWIDE                                                                       
(INCL. 3% SALES CHARGE)     21.44%   9.32%                                    

Morgan Stanley World Index   11.85%   6.33%                                     

Average Global Fund          18.64%   n/a                                       

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return      
and show you what would have happened if the fund had performed at a            
constant rate each year.                                                        
$10,000 OVER LIFE OF FUND                                                       
Worldwide (318) MS World Index                              
05/30/90         9700.00       10000.00                                       
05/31/90         9729.10       10038.61                                       
06/30/90         9981.30        9964.14                                       
07/31/90        10252.90       10051.93                                       
08/31/90         9098.60        9108.00                                       
09/30/90         8196.50        8144.51                                       
10/31/90         8681.50        8901.68                                       
11/30/90         8681.50        8752.34                                       
12/31/90         8631.28        8932.45                                       
01/31/91         8875.93        9255.96                                       
02/28/91         9365.23       10109.62                                       
03/31/91         9042.29        9808.57                                       
04/30/91         9130.37        9882.21                                       
05/31/91         9198.87       10103.10                                       
06/30/91         8543.20        9476.34                                       
07/31/91         9071.65        9920.84                                       
08/31/91         9208.65        9886.25                                       
09/30/91         9365.23       10142.44                                       
10/31/91         9404.37       10303.82                                       
11/30/91         8905.29        9851.69                                       
12/31/91         9311.08       10565.69                                       
01/31/92         9410.03       10366.97                                       
02/29/92         9696.98       10184.99                                       
03/31/92         9469.40        9702.08                                       
04/30/92         9884.99        9834.16                                       
05/31/92        10300.57       10222.20                                       
06/30/92         9944.35        9876.60                                       
07/31/92         9845.41        9898.58                                       
08/31/92         9706.88       10136.03                                       
09/30/92         9706.88       10039.86                                       
10/31/92         9528.77        9764.70                                       
11/30/92         9677.19        9936.32                                       
12/31/92         9889.02       10013.50                                       
01/31/93        10214.25       10043.98                                       
02/28/93        10458.17       10278.91                                       
03/31/93        11057.81       10871.83                                       
04/30/93        11332.22       11372.70                                       
05/31/93        11687.94       11631.78                                       
06/30/93        11565.98       11531.21                                       
07/31/93        11820.07       11765.78                                       
08/31/93        12562.00       12302.20                                       
09/30/93        12429.87       12071.96                                       
10/31/93        12968.54       12401.72                                       
11/30/93        12734.78       11697.27                                       
12/31/93        13503.03       12266.78                                       
01/31/94        14466.79       13072.98                                       
02/28/94        14249.17       12900.91                                       
03/31/94        13710.29       12341.84                                       
04/30/94        14186.99       12720.47                                       

Let's say you invested $10,000 in Fidelity Worldwide Fund on its start date     
and paid a 3% sales charge. By April 30, 1994, it would have grown to           
$14,187 - a 41.87% increase on your initial investment. That compares to        
$10,000 invested in the Morgan Stanley World index, which would have grown      
to $12,720 over the same period - a 27.20% increase.                            

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.                                  
(checkmark)                                                                     
WORLDWIDE                                                                       
FUND TALK: THE MANAGER'S OVERVIEW                                               

Interview with Penny Dobkin,                                                    
Manager of Fidelity Worldwide Fund                                              
Q. PENNY, HOW DID THE FUND PERFORM?                                             
A. Better than its peers. For the six months ended April 30, 1994, Fidelity     
Worldwide's total return was 9.40%, compared to 3.70% for the average           
global fund, according to Lipper Analytical Services. Over the past 12          
months the fund also enjoyed superior performance: 25.19%, compared to the      
group average of 18.64%.                                                        
Q. WHY DID FIDELITY WORLDWIDE DO SO MUCH BETTER THAN MOST OTHER GLOBAL          
FUNDS?                                                                          
A. Ordinarily the answer to a question like that would begin with a rundown     
of the fund's most successful investments. The fund did make profitable         
choices, and I'll gladly describe some of them later. But in recent months      
- particularly since the Federal Reserve raised interest rates on February      
4 - the key to achieving above-average performance has been avoiding the        
problem countries. Among the biggest losers lately have been Hong Kong and      
Malaysia. Last October, when both markets were in the midst of dramatic         
run-ups, I regretted having reduced the fund's stake in those countries to      
3% of assets. Since then, however, the fund's limited exposure has been a       
definite advantage.                                                             
Q. YOU'VE GENERALLY AVOIDED MAKING LARGE INVESTMENTS IN EMERGING MARKETS        
ALL OVER THE WORLD, NOT JUST IN SOUTHEAST ASIA. WHY?                            
A. I certainly haven't skipped them entirely. Six months ago, about 15% of      
the fund's investments were in developing countries. At the end of April,       
the total was about 11%. Most of the investments were spread among              
developing countries in Asia and Latin America. Only Mexico, with 4.6% of       
the fund's investments, represented a sizable position all by itself. (Most     
of the fund's Mexican investments, I should point out, were not winners         
during the period, due to the uprising in Chiapas and the political turmoil     
that followed.) But I don't want to give the impression that I'm forever        
biased against emerging markets. I have been skeptical about earnings           
estimates for many companies in emerging markets and believed that              
investors were paying too high a price for low-confidence forecasts.            
However, emerging markets have lost so much ground these last few months,       
it may soon be time to consider increasing the fund's positions.                
Q. WHERE HAVE YOU FOUND THE MOST WINNERS DURING THE PAST SIX MONTHS?            
A. In Europe. European investments as a percentage of the fund's total          
investments rose from 40% last October to 44% at the end of April. That         
represents a larger slice of the fund by far than any other region. The         
increase may not seem like much in percentage terms, but the fund's assets      
have grown during the same period by more than 80%. I've been buying            
heavily in Europe as cash has come into the fund.                               
Q. IS THERE A THEME BEHIND THE FUND'S EUROPEAN INVESTMENTS?                     
A. Yes, small company stocks. Small company stocks under-performed large        
company stocks in Europe from 1989 through the middle of 1993, but since        
then the trend has reversed. The fund has had success with consumer stocks      
like Escada, an apparel company, and Marieberg, a Swedish newspaper             
publisher. But the cyclical stocks are more exciting, since their               
performance mirrors the performance of the economy. The ones I've bought        
recently aren't well known, but they have helped the fund significantly:        
companies like Munksjo, a Swedish paper and packaging concern; Von Moos, a      
Swiss steel producer; and Bremer Vulkan, a German shipbuilder. What have        
been difficult for the fund in Europe are interest-rate sensitive stocks,       
particularly the Spanish banks. I still think they have good earnings           
growth prospects as the Spanish economy improves, since they have not yet       
benefited from lower loan losses. The important thing to remember about         
small company stocks in Europe is that many of them are still cheap.            
They've been outperforming for less than a year, and these cycles tend to       
run a long time.                                                                
Q. WHILE MOST WORLD MARKETS ARE DOWN SINCE THE BEGINNING OF THE YEAR,           
JAPAN'S NIKKEI AVERAGE IS UP THROUGH APRIL. WERE JAPANESE STOCKS A FACTOR       
IN THE FUND'S SUCCESS?                                                          
A. Not really. Japanese stocks were only about 14% of the fund at the end       
of April, or less than half Japan's overall weighting in the global market.     
Many of the big winners in Japan were exporters. But apart from the auto        
sector, I generally avoided the export stocks. My focus was on domestic         
sectors like department stores, which also did well. If I missed a              
short-term opportunity on the export side, it's because I have a hard time      
believing the yen will depreciate enough to allow exporters to greatly          
improve earnings this year.                                                     
Q. WHAT ABOUT THE FUND'S U.S. INVESTMENTS?                                      
A. At the end of April, U.S. investments, other than short-term                 
investments, totaled about 15%, down slightly from 18% last October. I've       
been playing the consumer theme here also, with investments in department       
stores like Dayton Hudson and apparel companies like Liz Claiborne. I still     
own some oil stocks, including Kerr-McGee and Amerada Hess; and lately I've     
added a couple of cheap drug stocks with strong product lines, notably          
Schering-Plough and Pfizer. But my largest U.S. stock is IBM. The company's     
continuing cost-cutting effort is far more meaningful than the market has       
wanted to believe. IBM is a huge stock that's currently underweighted in        
the portfolios of most institutional investors. Once the institutions run       
out of reasons not to like IBM anymore, they'll have to start buying again.     
Q. THERE'S BEEN A LOT OF TALK LATELY ABOUT DERIVATIVES. DOES THE FUND USE       
THEM?                                                                           
A. The fund has the authority to use derivatives to help manage its             
investments more efficiently. About 2% of the fund was hedged against           
currency risks using derivatives, in this case currency forward contracts,      
at the end of the period.                                                       
Q. WHAT'S THE OUTLOOK FOR THE FUND?                                             
A. I don't think it's as positive as it was six months ago. Back then, I        
often found that after visiting a company, the first thing I wanted to do       
was find a phone and put in a buy order. That doesn't happen as much            
anymore. Increasingly, I'm coming up with earnings projections that suggest     
stocks are already selling at reasonable prices, with limited upside            
potential. There are exceptions, of course - notably, the small company         
stocks in Europe I spoke of earlier. But large stocks in Europe look            
expensive to me, and I wouldn't be surprised to see them do nothing for the     
remainder of the year. If there's one place I'd be most likely to increase      
the fund's stake in the months ahead, it's the United States. It could be a     
fourth-quarter story rather than a summer story but suddenly the United         
States looks like one of the cheaper markets in the world. Whatever             
happens, though, no one should expect the fund to deliver another year of       
better than 20% returns.                                                        

FUND FACTS                                                                      
GOAL: to increase the value of the fund's shares                                
by investing mainly in common stocks from                                       
around the world                                                                
START DATE: May 30, 1990                                                        
SIZE: as of April 30, 1994, more than $526 million                              
MANAGER: Penelope Dobkin, since May 1990;                                       
manager, Fidelity Europe Fund, 1986-1990;                                       
Fidelity United Kingdom Fund, 1987-1989;                                        
Fidelity Select Financial Services Portfolio,                                   
1983-1986; analyst, banking and real estate;                                    
joined Fidelity in 1980                                                         
(checkmark)                                                                     
PENNY DOBKIN ON RECENT SHIFTS IN WORLD MARKETS:                                 
"There were at least four significant developments                              
during the past six months, all of which have                                   
contributed to a high level of uncertainty in world                             
markets. One, interest rates rose around the world,                             
with long rates rising more sharply than short rates                            
in most countries. Two, after a year of stunning                                
gains, many emerging markets around the world                                   
stalled in January, and fell sharply along with other                           
world markets following the February decision by                                
the Federal Reserve to raise U.S. interest rates.                               
Third, the dollar weakened in relation to most major                            
currencies, defying the consensus view of most                                  
analysts that it would strengthen. And finally, political                       
turmoil in Mexico led to a dramatic sell-off of                                 
Mexican stocks and bonds, spoiling the mood of                                  
euphoria that accompanied passage of the North                                  
American Free Trade Agreement last fall. As a                                   
result, so far in 1994, performance has been as                                 
much a function of the investments you avoided as                               
the investments you made."                                                      
(bullet)  European investments totalled 44% of the fund at                      
the end of April. Sweden and Germany led all other                              
countries in Europe, accounting for 7.6% and 7.6%                               
of the fund, respectively. Other European countries                             
with at least 3% of the fund's investments were the                             
Netherlands (5.3%), France (4.3%), Switzerland                                  
(3.9%) and the United Kingdom (3.5%).                                           
(bullet)  Investments in most European countries rose or                        
remained stable over the past six months. The                                   
exception was the U.K., where the fund sold                                     
property stocks at a profit. The fund still owns                                
property stocks in France, but so far their                                     
performance has been disappointing.                                             
(bullet)  Mexico led all other emerging markets in the fund,                    
with 4.6% of investments at the end of April, followed                          
by Argentina (1.7%), Hong Kong (0.8%), Singapore                                
(0.7%) and India (0.7%).                                                        
(bullet)  Short-term investments as a percentage of the                         
fund's total investments were 16% at the end of                                 
April. That was up slightly from 14% last October,                              
but still within the fund's neutral range.                                      
WORLDWIDE                                                                       
INVESTMENT CHANGES                                                              

GEOGRAPHIC DIVERSIFICATION                                                      
AS OF APRIL 30, 1994                                                            

France 4.3%                                                                     
Row: 1, Col: 1, Value: 30.8                                                     
Row: 1, Col: 2, Value: 3.5                                                      
Row: 1, Col: 3, Value: 3.9                                                      
Row: 1, Col: 4, Value: 7.6                                                      
Row: 1, Col: 5, Value: 3.0                                                      
Row: 1, Col: 6, Value: 15.1                                                     
Row: 1, Col: 7, Value: 5.3                                                      
Row: 1, Col: 8, Value: 4.6                                                      
Row: 1, Col: 9, Value: 14.3                                                     
Row: 1, Col: 10, Value: 7.6                                                     
Row: 1, Col: 11, Value: 4.3                                                     
Germany 7.6%                                                                    
United States 30.8%                                                             
Japan 14.3%                                                                     
Mexico 4.6%                                                                     
United                                                                          
Kingdom 3.5%                                                                    
Netherlands 5.3%                                                                
Switzerland 3.9%                                                                
Sweden 7.6%                                                                     
Other 15.1%                                                                     
Spain 3.0%                                                                      
AS OF OCTOBER 31, 1993                                                          
Finland 2.2%                                                                    
Row: 1, Col: 1, Value: 32.5                                                     
Row: 1, Col: 2, Value: 5.9                                                      
Row: 1, Col: 3, Value: 4.4                                                      
Row: 1, Col: 4, Value: 4.0                                                      
Row: 1, Col: 5, Value: 3.3                                                      
Row: 1, Col: 6, Value: 10.1                                                     
Row: 1, Col: 7, Value: 2.6                                                      
Row: 1, Col: 8, Value: 6.8                                                      
Row: 1, Col: 9, Value: 7.4                                                      
Row: 1, Col: 10, Value: 11.4                                                    
Row: 1, Col: 11, Value: 2.4                                                     
Row: 1, Col: 12, Value: 4.8                                                     
Row: 1, Col: 13, Value: 2.2                                                     
Row: 1, Col: 14, Value: 2.2                                                     
France 2.2%                                                                     
Germany 4.8%                                                                    
United States 32.5%                                                             
Hong Kong 2.4%                                                                  
Japan 11.4%                                                                     
Mexico 7.4%                                                                     
United                                                                          
Kingdom 5.9%                                                                    
Netherlands 6.8%                                                                
Switzerland 4.4%                                                                
Norway 2.6%                                                                     
Sweden 4.0%                                                                     
Other 10.1%                                                                     
Spain 3.3%                                                                      
ASSET ALLOCATION                                                                
% OF FUND'S   % OF FUND'S     
INVESTMENTS   INVESTMENTS     
          6 MONTHS AGO

Stocks                   80.1          80.4                                     

Bonds                    3.8           5.6                                      

Short-term investments   16.1          14.0                                     

TOP TEN STOCKS                                                                  
                          % OF FUND'S    % OF FUND'S
                          INVESTMENTS    INVESTMENTS
                                          6 MONTHS AGO

Grupo Tribasa SA de CV                                                          
sponsored ADR                           1.5            2.0                      
(Mexico, Construction)                                                          

Bremer Vulkan AG                                                                
(Germany, Ship Building & Repair)   1.2            -                        

Escada AG (non-vtg.)                                                            
(Germany, Textiles & Apparel)       1.0            -                        

Munksjo AB                                                                      
(Sweden, Paper & Forest Products)   1.0            -                        

Bail Investissement                                                             
(France, Real Estate)                   0.9            0.4                      

Fidis Spa Ord.                                                                  
(Italy, Credit & Other Finance)     0.9            -                        

Marieberg Tidnings A                                                            
(Sweden, Publishing)                    0.8            1.1                      

Rottneros Bruk AB Free shares                                                   
(Sweden, Paper & Forest Products)   0.8            -                        

Unidanmark AS Class A                                                           
(Demark, Banks)                         0.8            -                        

Von Moos Holdings AG Ord.                                                       
(Switzerland, Iron & Steel)         0.8            -                        

TOP TEN INDUSTRIES                                                              
                        % OF FUND'S    % OF FUND'S
                        INVESTMENTS    INVESTMENTS
                                        6 MONTHS AGO

Finance                                18.9           17.9                      

Construction & Real Estate         12.5           11.8                      

Basic Industries                       10.2           9.4                       

Retail & Wholesale                 8.6            7.7                       

Durables                               8.5            7.6                       

Energy                                 3.7            4.5                       

Media & Leisure                    3.1            3.8                       

Technology                             3.1            2.1                       

Industrial Machinery & Equipment   3.0            3.8                       

Transportation                         2.1            2.7                       

WORLDWIDE                                                                       
INVESTMENTS APRIL 30, 1994 (UNAUDITED)                                          

Showing Percentage of Total Value of Investment in Securities                   

COMMON STOCKS - 75.8%                                                           
SHARES VALUE (NOTE 1)                                                         
ARGENTINA - 0.1%                                                                
Cinba SA Ord.  131,159 $ 420,550  17899B92                                      
AUSTRALIA - 0.2%                                                                
Fosters Brewing Group Ltd.   1,212,500  1,066,782  35025810                     
BELGIUM - 0.5%                                                                  
GB-INNO-BM SA GIB  50,000  2,301,614  36149699                                  
DENMARK - 0.8%                                                                  
Burmeister & Wain Holdings AS,                                              
Series B (New)  3,120  209,436  12299296                                      
Unidanmark AS Class A  115,000  4,063,830  92399792                             
4,273,266                                                                   
FINLAND - 1.6%                                                                  
Enso Gutzeit OY R Free shares  195,000  1,397,941  29357810                     
Kansallis-Osake-Pankki  585,000  1,321,492  48199210                            
Kone Corp. Class B Ord.   13,000  1,509,582  50400092                           
Repola OY  87,600  1,556,912  75999A92                                          
Unitas Bank Ltd.  90499122:                                                     
A Free shares  270,000  766,179                                               
B Free shares  591,700  1,579,650  90499123                                   
8,131,756                                                                   
FRANCE - 4.3%                                                                   
Bail Investissement (b)  27,300  4,680,276  05699092                            
Coflexip sponsored ADR  108,000  2,443,500  19238410                            
Immeubles de France, Ste Des (b)  37,655  3,760,176  44999C22                   
Klepierre SA (b)  34,400  3,842,489  49899822                                   
Pechiney SA CIP  27,000  1,918,346  70599310                                    
UFB Locabail SA  34,000  2,571,933  90499592                                    
Unibail (b)  28,000  2,523,860  90599B92                                        
21,740,580                                                                  
GERMANY - 4.1%                                                                  
Bayer AG  7,200  1,714,244  07273010                                            
Bremer Vulkan AG  98,000  5,925,030  10689999                                   
Commerzbank (Rfd)  250  52,600  20299033                                        
Commerzbank AG  2,509  544,577  20259710                                        
Deutsche Babcock AG  5,500  888,513  25159991                                   
Deutsche Bank AG (warrants) (b)  9,500  1,404,897  25152596                     
Felten & Guilleaume Enrg. AG (b)  1,900  416,415  31499292                  
Herlitz AG  2,800  709,311  42799392                                            
Hoesch AG  3,100  412,334  43438199                                             
Karstadt AG DM 50  3,000  1,140,871  48576499                                   
Linotype-Hell AG (Bearer) (b)  6,400  1,509,069  53599092                       
Mannesmann AG (Rfd.)  912  256,948  56311595                                    
Mannesmann AG Ord.   7,300  2,085,399  56377510                                 
Rheinhold & Mahla AG  6,200  1,450,665  76299692                            
Sixt AG   16,000  1,033,132  83002195                                           
Sixt AG Ord. (b)  748  246,469  83002199                                        
Thyssen AG Ord.   4,200  727,001  88629110                                      
20,517,475                                                                  
HONG KONG - 0.8%                                                                
First Pacific Co. Ltd.   2,428,000  1,092,260  33699192                         
Fortei Holdings Ltd.   7,012,000  1,397,912  34999D22                           
Kong Wah Holdings Ltd. (b)  2,520,000  544,799  50599B92                        
Kumagai Gumi (b)  922,000  978,731  50099210                                    
4,013,702                                                                   
INDIA - 0.7%                                                                    
Arvind Mills Ltd. units (c)  210,800  1,159,400  04334810                       
Indian Aluminum Ltd. GDR (c)  273,700  2,189,600  45410110                      
3,349,000                                                                   
INDONESIA - 0.6%                                                                
Astra International (For. Reg.)  11,000  83,653  04699894                       
Bank Dagang Nas Indonesia PT  45,500  66,461  06099Q22                          

SHARES VALUE (NOTE 1)                                                         

Barito Pacific Timber (For. Reg.) (b)  171,000 $ 681,927  06799F23              
Dharmala International Land  975,000  1,695,427  25399592                       
Pan Brothers Textile PT  900,000  573,840  69799492                             
3,101,308                                                                   
IRELAND - 0.1%                                                                  
Aran Energy (b)  1,536,000  675,963  03899999                                   
ITALY - 2.7%                                                                    
Cementerie di Sardegna Spa  538,000  2,663,321  15199F22                        
Cogefar-Impresit Cost Gen Spa  1,300,000  2,106,923  19199092                   
Consorzio di Credit Oper. Pubbl.                                                
(Cogefar) (warrants)  1,300,000  1,459,263  21099922                          
Fidis Spa Ord.   1,100,000  4,550,601  31650010                                 
Fila Holding Spa sponsored ADR (b)  153,000  2,122,875  31685010                
Istituto Mobiliare Italiano  24,000  199,026  45777M92                          
Simint Ord. (b)  465,600  518,827  83799492                                     
13,620,836                                                                  
JAPAN - 14.3%                                                                   
Akita Bank  132,000  949,079  00999692                                          
Aomori Bank Ltd.   260,000  1,633,804  02399592                                 
Bandai Co. Ltd.   46,800  2,060,436  06099192                                   
Bank of the Ryukyus  17,000  971,141  83499192                                  
Bridgestone Corp.   155,000  2,320,497  10844110                                
Charle Co. Ltd.   55,000  1,327,194  15999392                                   
Daiichi Corp. Ord.   122,000  3,136,216  23599B92                               
Daito Trust Construction  76,000  2,021,078  24999492                           
Daiwa Securities  96,000  1,503,398  23499010                                   
Fuji Distribution Co.  182,600  1,501,733  36299992                             
Fukushima Bank Ltd.   287,000  1,580,153  36099A92                              
Hankyu Department Stores, Inc.   167,000  2,171,180  41099192                   
Hanshin Department Store  403,000  3,175,414  41199292                          
Higo Bank Ltd. Ord.   178,000  1,362,218  43299192                              
Hyogo Bank Ltd.  392,000  1,304,995  44999292                                   
Iwate Bank  32,000  1,733,478  45699392                                         
Joyfull Co. Ltd. (b)  39,000  852,753  49499F22                                 
Kanamoto Co. Ltd.   51,000  1,537,083  48399B22                                 
Kaneshita Construction Co. Ltd. Ord. (b)  145,000  2,513,543  49099592          
Kanto Auto Works Co. Ltd., Yokosuka  202,000  1,378,765  48599092               
Keio Teito Electric Railway (b)  234,000  1,288,348  48766710                   
Kenwood Corp.   99,000  857,096  49178692                                       
Koa Fire & Marine Insurance Co. Ltd.   167,000  1,157,963  49999010         
Kumagai Gumi Co. Ltd. (warrants)  7,600  570,000  50125193                      
Matsuya Co. Ltd.   181,000  1,167,685  57699E22                                 
Mazda Motor Corp. (b)  255,000  1,326,110  57878592                             
Michinoku Bank  195,000  1,569,142  59499392                                    
Mitsubishi Motors Corp. (b)  198,000  1,751,247  60899692                       
Mitsubishi Trust & Banking  105,000  1,551,266  60699410                    
Namura Shipbuilding (b)  90,000  640,894  62999892                              
Nichii Co. Ltd.   66,000  1,001,083  65299110                                   
Nomura Securities Co. Ltd.   117,000  2,546,735  65536130                       
Onward Kashiyama Co. Ltd.                                                       
(warrants) (b)  850  977,500  48551393                                        
Shimzu Bank Ltd.   29,000  2,230,769  82499592                                  
Sogo Co. Ltd.   387,000  2,515,709  83599K22                                    
Sony Corp. ADR  21,000  1,173,375  83569930                                     
Sumitomo Marine and Fire  220,000  2,136,512  94599392                          
Sumitomo Trust & Banking Co.   134,000  1,847,730  86599310                 
Tachi-S Co. Ltd.   120,000  1,157,096  88099392                                 
Tobu Railway Co. Ltd. (warrants) (b)  500  175,000  88739192                    
Toho Bank Ord.   195,000  1,402,048  91799192                                   
Tokio Marine & Fire Insurance Co. Ltd.                                      
(The)  110,000  1,408,451  88909099                                           
Tokyo Nissan Auto Sales Co. Ltd.   262,000  2,528,908  88998599                 
COMMON STOCKS - CONTINUED                                                       
SHARES VALUE (NOTE 1)                                                         
JAPAN - CONTINUED                                                               
Tokyu Department Stores Co. Ltd.  364,000 $ 2,384,124  88914593                 
Toyoda Auto Loom Works Ltd.   130,000  2,240,718  89200910                      
72,639,667                                                                  
LUXEMBOURG - 0.4%                                                               
Scandinavian Broadcasting Corp. (b)  71,000  1,828,250  80699E92                
MEXICO - 3.7%                                                                   
Banacci SA de CV:                                                               
Class B (b)  245,000  1,500,765  06399896                                     
Class C  55,000  373,124  06399893                                            
Class L (b)  92,000  624,134  06399895                                        
Cemex SA, Series B  90,000  1,951,608  15299293                                 
Grupo Carso SA de CV Class A-1 (b)  315,000  3,140,352  40099594                
Grupo Financiero Bancomer SA de CV                                              
sponsored ADR, Series C  (c)  89,000  2,191,625  40048610                     
Grupo Tribasa SA de CV                                                          
sponsored AD R (b)  300,042  7,351,029  40049F10                              
Telefonos de Mexico SA sponsored ADR                                            
representing shares Ord. Class L  29,000  1,707,375  87940378                 
18,840,012                                                                  
NETHERLANDS - 5.3%                                                              
Akzo NV Ord.   10,400  1,253,154  01019910                                      
Bam Groep NV  18,600  1,152,168  05999892                                       
CVG (Crown Van Gelder)  26,000  2,247,778  12699292                             
Draka Holding NV   48,700  1,114,867  26199B22                                  
Econosto NV  170,000  2,215,998  27903299                                       
Geveke Trade  88,200  1,724,568  37431310                                       
Heidemij NV (b)  100,400  1,066,750  42099522                                   
Hoogovens en Staalfabrieken (b)  49,300  1,917,296  43888410                    
KBB (Kon Bijenkorf Beheer) NV:                                                  
Ord.   13,800  790,164  48130092                                            
(rights)  13,800  5,947  48130095                                             
Kempen & Company NV  269,000  1,999,568  48899D22                           
MacIntosh Confectionary Works (b)  62,000  2,043,846  58199292                  
Philips Electronics (b)  29,400  859,909  71833799                              
Pirelli Tyre Holdings NV Ord. (b)  171,500  1,708,996  72499092                 
Samas-Groep NV  57,250  1,788,580  79499110                                     
Telegraaf  23,700  2,093,617  87940410                                          
Volker Stevin NV  42,600  2,111,069  92868894                                   
Wereldhave NV  8,800  522,359  95199E22                                         
26,616,634                                                                  
NORWAY - 2.3%                                                                   
Bolig Og Naerings Banken  113,000  2,317,997  09799F22                          
Color Lines  312,600  1,265,039  19699492                                       
Den Norske Bank Class A Free shares (b)  674,700  1,821,832  25299792           
Mosvold Shipping AS B  221,700  1,299,368  62099294                             
Petroleum Geo Services AS (b)  53,000  739,593  71699E92                        
Smedvig AS  92,200  1,055,023  79799892                                         
Smedvig AS (rights)  92,200  3,217  79799895                                    
Sparebanken Norway Prime share                                                  
cert. (b)  75,000  1,412,902  84699E22                                        
Vital Forsikring Free shares  186,500  1,899,848  93999692                      
11,814,819                                                                  
PORTUGAL - 0.5%                                                                 
Engil Soc. de Const.   21,000  307,934  29299192                                
Engil Soc. de Const. (New)  12,600  184,760  29299197                           
Mundicenter Soc Imobil SA   72,000  2,073,465  62699592                         
2,566,159                                                                   
SINGAPORE - 0.7%                                                                
Jurong Cement (b)  1,110,000  3,355,197  48299792                               

SHARES VALUE (NOTE 1)                                                         
SOUTH AFRICA - 0.4%                                                             
Anglo American Corp. of South                                                   
Africa Ltd.:                                                                  
ADR  10,000 $ 492,500  03486110                                               
(Reg.) (b)  30,000  1,524,324  03486130                                       
2,016,824                                                                   
SPAIN - 2.9%                                                                    
Banco Bilbao Vizcaya SA Ord. (Reg.)  154,600  3,692,026  05945891               
Banco Central SA (Reg.)  101,000  2,205,682  05947010                           
Banco de Santander Ord. (Reg.)   8,000  351,792  05957410                       
Banco de Valencia SA (Reg.)  210,000  2,573,817                                 
Banco Pastor SA (b)  80,475  3,777,917  05999792                                
Conservera Campo Frio  34,000  1,742,618  20899292                              
Hisalba (b)  15,000  268,524  46199592                                          
14,612,376                                                                  
SWEDEN - 7.4%                                                                   
ASG AB Class B Free shares Ord.   79,700  1,360,229  16599C22                   
Arjo AB (c)  168,000  2,668,732  04069792                                       
Avest Sheffield AB Ord. Free shares (b)  430,000  2,822,597  05399892           
Catena AB Class A Free shares  140,000  1,157,920  14999G22                     
Celsius Industrier AB Class B  85,000  2,265,298  15199D22                      
Enator Information System AB B Free                                             
shares (b)  312,600  1,723,648  29299H22                                      
Foreningsbanken AB Ord. Class A (b)  683,000  1,416,733  34599E22               
Hennes & Mauritz AB B Free shares  27,900  1,384,543  42599110              
Hoganas AB Class B Free shares (c)  70,000  946,555  43899M22                   
Marieberg Tidnings A (b)  160,000  4,222,080  56799392                          
Munksjo AB  628,000  4,864,318  62599922                                        
NCC AB B Free shares  479,000  3,835,976  63399192                              
Rottneros Bruk AB Free shares  4,000,000  4,201,080  77899522                   
Scribona AB B Free shares (b)  66,100  433,892  81199B92                        
Skanska Class B (b)  40,000  987,252  93899392                                  
Trelleborg AB Class C Free shares  156,000  2,293,787  89491092                 
Trustor AB B Free shares  185,500  1,120,242  89899D22                          
37,704,882                                                                  
SWITZERLAND - 3.9%                                                              
Bucher Holding AG (Bearer)  350  1,187,329  08699292                            
CS Holdings (Bearer) (b)  2,830  1,218,202  17599792                            
Globus Magazine Part. Cert.  1,800  1,199,444  37957792                         
Industrieholding Cham AG (Reg.)  1,500  1,207,996  85599922                     
Jelmoli Grand Magasins SA (Reg.)  15,000  1,662,331  47469993                   
Jelmoli Grands Magasins SA  1,150  686,812  47469910                            
Merkur Holdings AG Ord. (Reg.)  6,000  1,492,356  59099393                      
Reisebuero Kuoni Part. Cert.  1,400  2,195,061  75999592                        
SMH (Schweiz Gesel UHR) (Bearer)  3,500  2,120,229  80899294                    
Swiss Bank Corp. (Reg.)  10,936  1,519,809  87083694                            
Swiss Reinsurance Corp.:                                                        
(Reg.) (b)  1,500  639,276  87099393                                        
A (warrants) (b)  1,500  5,078  87099D22                                      
B (warrants) (b)  1,500  5,880  87099399                                      
Von Moos Holdings AG Ord  33,500  4,034,850  94099293                           
Winterthur Schweiz (Reg.)  1,750  808,182  97629994                             
19,982,835                                                                  
THAILAND - 0.2%                                                                 
Eastern Wire Co. Ltd. (For. Reg.)  325,000  884,133  27799423                   
UNITED KINGDOM - 3.3%                                                           
Brown & Jackson PLC  19,000,000  1,513,730  11599092                        
Guinness PLC Ord.   160,000  1,164,226  40203310                                
Hammerson Property Investment &                                             
Development Corp. PLC Ord.   194,333  1,172,228  40831510                     
Hanson Trust PLC Ord.   190,000  787,128  41135210                              
COMMON STOCKS - CONTINUED                                                       
SHARES VALUE (NOTE 1)                                                         
UNITED KINGDOM - CONTINUED                                                      
Hartstone Group PLC Ord. (b)  829,200 $ 578,823  41722610                       
Imperial Chemical Industries PLC:                                               
ADR (New)  15,000  746,250  45270450                                          
Ord.   50,000  622,934  45270440                                              
Ladbroke Group PLC Ord.   570,000  1,604,527  50572799                          
Royale Insurance Co. Ltd.   350,000  1,396,860  78074910                        
Sedgwick Group  240,000  717,475  81482610                                      
Shanks & McEwan Group PLC   1,400,000  2,273,222  81999294                  
Trafalgar House PLC Ord.   925,000  1,473,876  89270710                         
Wates City of London Property (b)  1,574,999  1,912,049  94299092               
Wellcome PLC sponsored ADR  90,000  720,000  94947820                           
16,683,328                                                                  
UNITED STATES OF AMERICA - 13.9%                                                
AMR Corp. (b)  25,000  1,515,625  00176510                                      
Allstate Corp.   56,700  1,353,713  02000210                                    
Alumax, Inc. (b)  13,300  317,538  02219710                                     
Amerada Hess Corp.   42,700  2,145,675  02355110                                
American Eagle Outfitters, Inc.  1,000  15,625  02553D10                        
American Ecology Corp.   25,400  266,700  02553310                              
American Stores Co.   68,800  1,720,000  03009610                               
Astec Industries, Inc. (b)  67,000  1,005,000  04622410                         
BJ Services Co. (b)  19,300  354,638  05548210                                  
Baker (J.), Inc.   51,000  1,083,750  05723210                                  
Bank of Boston Corp.   32,551  838,188  06071610                                
Bruno's, Inc.   150,000  1,143,750  11688110                                    
Burlington Industries, Inc.   41,000  625,250  12169310                         
Cliffs Drilling Co. (b)  18,000  229,500  18682C10                              
Cobra Industries, Inc. (b)  71,000  426,000  19104E10                           
Cyprus Amax Minerals Co.   13,300  374,063  23280910                            
Dayton Hudson Corp.   32,900  2,599,100  23975310                               
Deposit Guaranty Corp.   25,000  706,250  24955510                              
Dresser Industries, Inc.   48,000  1,092,000  26159710                          
Eastman Kodak Co.   42,000  1,743,000  27746110                                 
Enterra Corp. (b)  25,600  515,200  29380510                                    
Exxon Corp.   15,000  943,125  30229010                                         
GEON Co.  28,000  773,500  37246W10                                             
Georgia Gulf Corp. (b)  23,800  687,225  37320020                               
Global Marine, Inc. (New) (b)  285,000  1,140,000  37935240                     
Global Ocean Carriers Ltd. (b)  26,200  88,425  37935710                        
Grace (W.R.) & Co.   10,900  444,175  38388310                              
Great Atlantic & Pacific Tea Co., Inc.   13,300  332,500  39006410          
Halliburton Co.   14,000  414,750  40621610                                     
Harveys Casino Resorts  24,500  410,375  41782610                               
Helmerich & Payne, Inc.   32,000  836,000  42345210                         
International Business Machines Corp.   63,700  3,646,825  45920010             
Kentucky Electric Steel, Inc. (b)  28,600  293,150  49127B10                    
Kerr-McGee Corp.   54,600  2,443,350  49238610                                  
Kroger Co. (The) (b)  70,000  1,592,500  50104410                               
Lafarge Corp.   36,200  819,025  50586210                                       
Liz Claiborne, Inc.   90,000  2,250,000  53932010                               
Medusa Corp.   47,400  1,179,075  58507230                                      
Mellon Bank Corp.   21,589  1,203,587  58550910                                 
Micropolis Corp. (b)  54,050  391,863  59490710                                 
Mobil Corp.   8,000  626,000  60705910                                          
OM Group, Inc. (b)  70,000  1,400,000  67087210                                 
Oryx Energy Co.   22,200  374,625  68763F10                                     
Pfizer, Inc.   31,000  1,829,000  71708110                                      
Philip Morris Companies, Inc.   26,000  1,417,000  71815410                     
RJR Nabisco Holdings Corp. (b)  228,700  1,457,963  74960K10                    
Reynolds Metals Co.   28,200  1,184,400  76176310                               
Rite Aid Corporation  55,000  1,058,750  76775410                               
Ross Stores, Inc. (b)  62,900  1,061,438  77829610                              

SHARES VALUE (NOTE 1)                                                         

Santa Fe Pacific Corp.   44,000 $ 979,000  80218310                             
Schering-Plough Corp.   39,000  2,379,000  80660510                             
Sears, Roebuck & Co.   33,000  1,551,000  81238710                          
Serv-Tech, Inc. (b)  18,200  177,450  81753910                                  
Shawmut National Corp.   55,000  1,230,625  82048410                            
Standard Pacific Corp.   65,000  593,125  85375C10                              
Stop & Shop Companies, Inc. (b)  27,700  740,975  86209910                  
Supervalu, Inc.   17,000  554,625  86853610                                     
Tech Data Corp. (b)  20,000  357,500  87823710                                  
Texaco, Inc.   10,300  663,063  88169410                                        
Textron, Inc.   19,000  1,002,250  88320310                                     
Tidewater, Inc.   17,000  357,000  88642310                                     
Tuboscope Vetco Corp. (b)  151,000  868,250  89860010                           
UAL Corp. (b)  8,000  1,033,000  90254910                                       
UDC Homes, Inc.   60,200  413,875  90264610                                     
Union Planters Corp.   62,407  1,653,786  90806810                              
Unisys Corp. (b)  70,000  761,250  90921410                                     
United States Banknote Corp. (b)  125,000  437,500  91162310                    
Vons Companies, Inc. (b)  39,300  717,225  92886910                             
Weatherford International, Inc. (b)  42,500  456,875  94707610                  
Western Co. of North America (b)  55,000  701,250  95804340                     
Westpoint Stevens, Inc. Class A (b)  60,400  973,950  96123810                  
Whitney Holding Corp.   27,000  621,000  96661210                               
Wolverine Tube, Inc. (b)  36,000  828,000  97809310                             
70,420,765                                                                  
VENEZUELA - 0.1%                                                                
CA Venepal GDR Class A ADR (b) (c)  134,502  437,132  12477610                  
TOTAL COMMON STOCKS                                                             
(Cost $350,845,237)   383,615,845                                             
PREFERRED STOCKS - 4.3%                                                         
CONVERTIBLE PREFERRED STOCKS - 0.9%                                             
UNITED KINGDOM - 0.1%                                                           
Trafalgar House PLC Ord. 6%  200,000  411,242  89270797                         
UNITED STATES OF AMERICA - 0.8%                                                 
Chiles Offshore Corp. $1.50 (b)  13,000  295,750  16888720                      
Consolidated Freightways, Inc., Series C,                                       
$1.54  67,300  1,514,250  20923720                                            
Kaiser Aluminum Corp. $0.96 (b)  19,000  178,125  48300740                      
Reynolds Metals Co. $3.31  21,500  991,688  76176350                            
Unisys Corp., Series A, $3.75 (b)  26,600  1,060,675  90921420                  
4,040,488                                                                   
TOTAL CONVERTIBLE PREFERRED STOCKS   4,451,730                                  
NONCONVERTIBLE PREFERRED STOCKS - 3.4%                                          
GERMANY - 3.4%                                                                  
Bayerische Motor Werke (BMW) AG  4,000  1,596,131  05528393                     
Escada AG (non-vtg.)  22,000  5,160,822  29605192                               
FAG Kugelfischer Georg Schaef  16,000  2,282,950  50105492                      
Herlitz AG  15,000  3,400,846  42799393                                         
Kaufhof AG  5,800  1,465,780  48615294                                          
Moebel Walther AG  3,600  1,469,166  61099B22                                   
Schwabengarage AG  7,900  1,838,875  80899392                                   
17,214,570                                                                  
PREFERRED STOCKS - CONTINUED                                                    
SHARES VALUE (NOTE 1)                                                         
NONCONVERTIBLE PREFERRED STOCKS - CONTINUED                                     
PORTUGAL - 0.0%                                                                 
Engil Soc. de Const.  10,000 $ 128,122  29299194                                
Engil Soc. de Const. (New)  6,000  76,873  29299198                             
204,995                                                                     
TOTAL NONCONVERTIBLE PREFERRED STOCKS   17,419,565                              
TOTAL PREFERRED STOCKS                                                          
(Cost $18,001,868)   21,871,295                                               
CORPORATE BONDS - 1.1%                                                          
MOODY'S RATINGS PRINCIPAL                                                     
AMOUNT (A)                                                                  
CONVERTIBLE BONDS - 1.0%                                                        
DENMARK - 0.1%                                                                  
Burmeister & Wain Holdings                                                  
AS 7%, 10/4/98 - DKK 3,160,000  726,577  122992AA                             
GERMANY - 0.1%                                                                  
Commerzbank AG 7%,                                                              
12/31/00 - DEM 500,000  471,584  202990MS                                     
GRAND CAYMAN - 0.5%                                                             
Filinvest (Cayman Island) Ltd.                                                  
3 3/4%, 2/28/04 (c) - $ 3,000,000  2,640,000  317015AA                        
SPAIN - 0.1%                                                                    
Banco Santander euro 9%,                                                        
6/24/94 A1 ESP 50,000,000  393,685  0595749B                                  
UNITED KINGDOM - 0.1%                                                           
Royal Insurance Holdings PLC                                                    
euro 7 1/4%, 12/12/07 - GBP 375,000  598,938  7807499B                        
TOTAL CONVERTIBLE BONDS   4,830,784                                             
NONCONVERTIBLE BONDS - 0.1%                                                     
ITALY - 0.1%                                                                    
Consorzio di Credit Oper.                                                       
Pubbl. 6%, 3/31/99 - ITL 1,300,000  758,328  210999AA                         
TOTAL CORPORATE BONDS                                                           
(Cost $5,722,555)   5,589,112                                                 
GOVERNMENT OBLIGATIONS (E) - 2.7%                                               
ARGENTINA - 1.6%                                                                
Argentina Republic 5%,                                                          
3/31/05 (c) (d) -  187,000  136,276  039995AT                                 
Argentina Republic:                                                             
BOCON 3 1/4%, 4/1/01 B1  1,472,024  1,029,843  039995AF                       
Brady:                                                                      
euro 4%, 3/31/23 B1  10,000,000  5,287,500                                  
4%, 3/31/23 (c) -  3,315,000  1,752,806  0401149Y                         
8,206,425                                                                   
MEXICO - 0.9%                                                                   
Mexican Government 10 3/5%,                                                     
10/20/94 - MXN 15,000,000  4,593,768  597998TH                                

MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)                                      
AMOUNT (A)                                                                  
SWEDEN - 0.2%                                                                   
Swedish Government 11 1/2%,                                                     
9/1/95 Aa2 SEK 6,000,000 $ 822,409  8702009B                                  
TOTAL GOVERNMENT OBLIGATIONS                                                    
(Cost $13,522,127)   13,622,602                                               
REPURCHASE AGREEMENTS - 16.1%                                                   
MATURITY                                                                      
AMOUNT                                                                        
Investments in repurchase agreements                                            
(U.S. Treasury obligations), in a joint                                       
trading account at 3.56% dated                                                
4/29/94 due 5/2/94  $ 81,773,252  81,749,000                                  
TOTAL INVESTMENT IN SECURITIES - 100%                                           
(Cost $469,840,787)  $ 506,447,854                                            
FORWARD FOREIGN CURRENCY CONTRACTS                                              
SETTLEMENT  UNREALIZED                                                      
DATE(S) VALUE GAIN/(LOSS)                                                   
CONTRACTS TO BUY                                                                
197,712,500 ESP 5/3/94 $ 1,467,930 $ 74,607                                   
(Payable amount $1,393,323)                                                     
THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF TOTAL INVESTMENT IN            
SECURITIES - 0.3%                                                               
CONTRACTS TO SELL                                                               
197,712,500 ESP 5/3/94 $ 1,467,930 $ (79,524)                                 
33,265,250 NOK 6/28/94  4,633,753  (77,806)                                   
638,700,000 JPY 7/1/94  6,312,574  (111,964)                                  
TOTAL CONTRACTS TO SELL                                                         
(Receivable amount $12,144,963) $ 12,414,257 $ (269,294)                        
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF TOTAL INVESTMENT IN           
SECURITIES - 2.5%                                                               
CURRENCY ABBREVIATIONS                                                          
DKK - Danish krone                                                              
DEM - German Deutsche mark                                                      
ESP - Spanish peseta                                                            
GBP - British pound                                                             
ITL - Italian lira                                                              
JPY - Japanese yen                                                              
MXN - Mexican peso                                                              
NOK - Norwegian krone                                                           
SEK - Swedish krona                                                             
LEGEND                                                                          
1. Principal amount is stated in United States dollars unless otherwise         
noted.                                                                          
2. Non-income producing                                                         
3. 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 $14,122,126 or 2.8% of net       
assets.                                                                         
4. The coupon rate shown on floating or adjustable rate securities              
represents the rate at period end.                                              
5. Most foreign government obligations have not been individually rated by      
S&P or Moody's. The ratings listed are assigned to securities by FMR,       
the fund's investment adviser, based principally on S&P and Moody's         
ratings of the sovereign credit of the issuing government.                      
6. Standard & Poor's Corporation credit ratings are used in the absence     
of a rating by Moody's Investors Service, Inc.                                  
OTHER INFORMATION                                                               
Purchases and sales of securities, other than short-term securities,            
aggregated $243,065,530 and $91,607,208, 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 $21,940 for the period (see Note 4 of Notes to Financial             
Statements).                                                                    
INCOME TAX INFORMATION                                                          
At April 30, 1994, the aggregate cost of investment securities for income       
tax purposes was $469,903,144. Net unrealized appreciation aggregated           
$36,544,710, of which $59,459,988 related to appreciated investment             
securities and $22,915,278 related to depreciated investment securities.        
INDUSTRY DIVERSIFICATION                                                        
As a Percentage of Total Value of Investments                                   
Aerospace & Defense    1.9%                                                 
Basic Industries    10.2                                                        
Conglomerates   0.4                                                             
Construction & Real Estate   12.5                                           
Durables   8.5                                                                  
Energy   3.7                                                                    
Finance   18.9                                                                  
Government Obligations    2.7                                                   
Health   1.5                                                                    
Industrial Machinery & Equipment   3.0                                      
Media & Leisure   3.1                                                       
Nondurables   1.5                                                               
Precious Metals   0.4                                                           
Repurchase Agreements   16.1                                                    
Retail & Wholesale   8.6                                                    
Services    1.5                                                                 
Technology   3.1                                                                
Transportation   2.1                                                            
Utilities   0.3                                                                 
100.0%                                                                  
WORLDWIDE                                                                       
FINANCIAL STATEMENTS                                                            

STATEMENT OF ASSETS AND LIABILITIES                                             

                                                                · Download Table

                                                                      
                                                                      
APRIL 30, 1994 (UNAUDITED)                                            
ASSETS                                                                
Investment in securities, at value (including repurchase agreements of
 $81,749,000) (cost $469,840,787)$ 506,447,854                        
(Notes 1 and 2) - See accompanying schedule                           
Long foreign currency contracts held, at value                        
(cost $1,393,323) (Note 2)                                            
1,467,930                                                             
Short foreign currency contracts                                      
$ (12,414,257                                                         
(Note 2) )                                                            
Contracts held, at value                                              
Receivable for contracts held                                         
12,144,963      (269,294                                              
)                                                                     
Receivable for investments sold                                       
8,042,635                                                             
Receivable for fund shares sold                                       
17,009,053                                                            
Dividends receivable                                                  
893,189                                                               
Interest receivable                                                   
422,471                                                               
Other receivables                                                     
7,487                                                                 
TOTAL ASSETS                                                          
534,021,325                                                           
LIABILITIES                                                           
Payable for foreign currency contracts held (Note 2)                  
1,393,323                                                             
Payable for investments purchased                                     
623,007                                                               
Payable for fund shares redeemed                                      
4,344,385                                                             
Accrued management fee                                                
314,869                                                               
Other payables and accrued expenses                                   
390,309                                                               
TOTAL LIABILITIES                                                     
7,065,893                                                             
NET ASSETS                                                            
$ 526,955,432                                                         
Net Assets consist of (Note 1):                                       
Paid in capital                                                       
$ 468,911,677                                                         
Undistributed net investment income                                   
1,291,214                                                             
Accumulated undistributed net realized gain (loss) on investments     
20,340,161                                                            
Net unrealized appreciation (depreciation) on:                        
Investment securities                                                 
36,607,067                                                            
Foreign currency contracts                                            
(194,687                                                              
)                                                                     
NET ASSETS, for 38,489,069 shares outstanding                         
$ 526,955,432                                                         
NET ASSET VALUE, offering price and redemption price per share        
($526,955,432 (divided by) 38,489,069 shares) (Note 4)                


STATEMENT OF OPERATIONS                                                         

                                                        · Enlarge/Download Table

                                                                                             
 SIX MONTHS ENDED APRIL 30, 1994 (UNAUDITED)                                                 

INVESTMENT INCOME                                                                $ 2,883,315 
Dividends                                                                                    

Interest                                                                          1,919,073  

                                                                                  4,802,388  

Less foreign taxes withheld (Note 1)                                              (253,778   
                                                                                 )           

 TOTAL INCOME                                                                     4,548,610  

EXPENSES                                                                                     

Management fee (Note 4)                                             $ 1,606,216              

Transfer agent fees (Note 4)                                         826,968                 

Accounting fees and expenses                                         125,451                 
(Note 4)                                                                                     

Non-interested trustees' compensation                                1,140                   

Custodian fees and expenses                                          179,574                 

Registration fees                                                    87,934                  

Audit                                                                25,002                  

Legal                                                                2,179                   

Miscellaneous                                                        1,544                   

 Total expenses                                                      2,856,008               

 Expense reductions (Note 6)                                         (2,558       2,853,450  
                                                                    )                        

NET INVESTMENT INCOME                                                             1,695,160  

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTES 1 AND 2)                           
Net realized gain (loss) on:                                                                 

 Investment securities                                               20,810,808              

 Foreign currency contracts                                          (146,783     20,664,025 
                                                                    )                        

Change in net unrealized appreciation (depreciation) on:                                     

 Investment securities                                               9,592,747               

 Foreign currency contracts                                          (373,435     9,219,312  
                                                                    )                        

NET GAIN (LOSS)                                                                   29,883,337 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS                  $ 31,578,497

OTHER INFORMATION                                                                            

 Accounting fees paid to FSC                                                      $124,430   
 (Note 4)                                                                                    


STATEMENT OF CHANGES IN NET ASSETS                                              

                                                        · Enlarge/Download Table

                                                                                                        
INCREASE (DECREASE) IN NET ASSETS                                        SIX MONTHS       YEAR ENDED    
                                                                         ENDED APRIL 30,  OCTOBER 31,   
                                                                         1994             1993          
                                                                         (UNAUDITED)                    
Operations                                                               $ 1,695,160      $ 2,970,026   
Net investment income                                                                                   
Net realized gain (loss) on investments                                  20,664,025       10,114,657    
Change in net unrealized appreciation (depreciation) on investments      9,219,312        31,061,709    
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS          31,578,497       44,146,392    
Distributions to shareholders:                                           (2,354,690       (2,497,555    
From net investment income                                                )                             
                                                                                           )            
From net realized gain                                                   (3,532,260       (158,811      
                                                                          )                )            
TOTAL DISTRIBUTIONS                                                      (5,886,950       (2,656,366    
                                                                          )                )            
Share transactions                                                       490,802,662      277,973,551   
Net proceeds from sales of shares                                                                       
Reinvestment of distributions                                            5,746,754        2,587,340     
Cost of shares redeemed                                                  (282,563,692     (138,399,750  
                                                                          )                )            
Net increase (decrease) in net assets resulting from share transactions   213,985,724      142,161,141  
TOTAL INCREASE (DECREASE) IN NET ASSETS                                   239,677,271      183,651,167  
NET ASSETS                                                                                              
Beginning of period                                                       287,278,161      103,626,994  
End of period (including undistributed net                                                              
investment income of $1,291,214 and $3,525,845, respectively)             $ 526,955,432    $ 287,278,161
OTHER INFORMATION                                                                                       
Shares                                                                                                  
 Sold                                                                     36,618,695       23,493,059   
 Issued in reinvestment of distributions                                  451,410          270,077      
 Redeemed                                                                 (21,102,260      (11,997,236  
                                                                          )                )            
 Net increase (decrease)                                                  15,967,845       11,765,900   
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.                                

FINANCIAL HIGHLIGHTS                                                            

                                                        · Enlarge/Download Table

                                                                                            
                                                                                            
SIX MONTHS ENDED   YEARS ENDED OCTOBER 31,                           MAY 30, 1990           
APRIL 30, 1994                                                      (COMMENCEMENT           
(UNAUDITED)                                                          OF OPERATIONS) TO      
                                                                    OCTOBER 31, 1990        

SELECTED PER-SHARE DATA                                                                     
                   1993                      1992        1991                               

Net asset value, beginning of period                                                        
$ 12.76            $ 9.63                    $ 9.61      $ 8.95      $ 10.00                

Income from Investment Operations                                                           

Net investment income                                                                       
.01                .11                       .20         .21         .05                    

 Net realized and unrealized gain (loss) on investments                                     
1.17               3.28                      (.08)       .53         (1.10)                 

 Total from investment operations                                                           
1.18               3.39                      .12         .74         (1.05)                 

Less Distributions                                                                          

 From net investment income                                                                 
(.10)              (.24)                     (.10)       (.08)       -                      

 From net realized gain                                                                     
(.15)              (.02)(s diamond)              -           -           -                  

 Total distributions                                                                        
(.25)              (.26)                     (.10)       (.08)       -                      

Net asset value, end of period                                                              
$ 13.69            $ 12.76                   $ 9.63      $ 9.61      $ 8.95                 

TOTAL RETURN (diamond)                                                                      
9.40%              36.10%                    1.32%       8.33%       (10.50)%               

RATIOS AND SUPPLEMENTAL DATA                                                                

Net assets, end of period (000 omitted)                                                     
 $ 526,955          $ 287,278                 $ 103,627   $ 105,029   $ 94,851              

Ratio of expenses to average net assets                                                     
1.40%*             1.40%                     1.51%       1.69%       2.00%*                 

Ratio of expenses to average net assets before expense                                      
1.40%*             1.40%                     1.51%       1.69%       2.46%*                 
reductions                                                                                  

Ratio of net investment income to average net assets                                        
.83%*              1.99%                     2.02%       2.19%       2.09%*                 

Portfolio turnover rate                                                                     
58%*               57%                       130%        129%        123%*                  

* ANNUALIZED                                                                                
(s diamond) INCLUDES AMOUNTS DISTRIBUTED FROM NET REALIZED GAINS ON FOREIGN CURRENCY RELATED
TRANSACTIONS TAXABLE AS ORDINARY INCOME.                                                    
(diamond) THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED     
DURING THE PERIODS SHOWN.                                                                   
(dagger) TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN
ONE YEAR ARE NOT ANNUALIZED.                                                                


CANADA                                                                          
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). Canada Fund has      
a 3% sales charge, which has been waived through June 30, 1995.                 
CUMULATIVE TOTAL RETURNS                                                        
PERIODS ENDED              PAST 6   PAST 1   PAST 5   LIFE OF                   
APRIL 30, 1994             MONTH    YEAR     YEARS    FUND                      
S                         

CANADA                     -2.25%   4.87%    51.69%   111.61%                   

CANADA                                                                          
(INCL. 3% SALES CHARGE)   -5.18%   1.73%    47.14%   105.26%                  

TSE 300 (Toronto Stock                                                          
Exchange 300) Index       -3.10%   6.21%    19.24%   71.07%                   

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms        
over a set period - in this case, six months, one year, five years, or          
since the fund started on November 17, 1987. You can compare the fund's         
figures to the performance of the Toronto Stock Exchange (TSE) 300 index -      
a broad measure of the performance of the Canadian stock market. This index     
includes reinvested dividends and capital gains, if any, and excludes the       
effects of sales charges.                                                       
AVERAGE ANNUAL TOTAL RETURNS                                                    
PERIODS ENDED              PAST 1   PAST 5   LIFE OF                            
APRIL 30, 1994             YEAR     YEARS    FUND                               

CANADA                     4.87%    8.69%    12.31%                             

CANADA                                                                          
(INCL. 3% SALES CHARGE)   1.73%    8.03%    11.78%                            

TSE 300 (Toronto Stock                                                          
Exchange 300) Index       6.21%    3.58%    8.67%                             

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return      
and show you what would have happened if the fund had performed at a            
constant rate each year.                                                        
$10,000 OVER LIFE OF FUND                                                       
Canada (309) Toronto 300 Stock Exc.                         
11/17/87      9700.00              10000.00                                   
11/30/87      9767.90              10153.53                                   
12/31/87     10446.90              10895.36                                   
01/31/88     10340.20              10759.36                                   
02/29/88     11048.30              11447.90                                   
03/31/88     11737.00              12111.13                                   
04/30/88     12008.60              12268.35                                   
05/31/88     11436.30              11947.11                                   
06/30/88     12319.00              12906.84                                   
07/31/88     12144.40              12762.32                                   
08/31/88     11562.40              12139.94                                   
09/30/88     11804.90              12401.15                                   
10/31/88     12357.80              12753.48                                   
11/30/88     12212.30              12830.11                                   
12/31/88     12480.81              13188.28                                   
01/31/89     13422.57              14213.27                                   
02/28/89     13045.86              13881.50                                   
03/31/89     13263.96              14027.96                                   
04/30/89     13531.61              14346.43                                   
05/31/89     13987.62              14383.31                                   
06/30/89     14661.73              14845.75                                   
07/31/89     15553.92              15890.01                                   
08/31/89     15633.23              16147.42                                   
09/30/89     15534.09              15922.92                                   
10/31/89     15316.00              15949.98                                   
11/30/89     15405.22              16197.04                                   
12/31/89     15849.09              16474.68                                   
01/31/90     14563.75              15023.40                                   
02/28/90     14646.68              14920.74                                   
03/31/90     14895.45              15084.12                                   
04/30/90     14180.22              13930.65                                   
05/31/90     15113.13              14884.87                                   
06/30/90     15465.56              14908.13                                   
07/31/90     15589.95              15161.03                                   
08/31/90     14688.14              14235.18                                   
09/30/90     14449.73              13514.44                                   
10/31/90     14066.20              13073.85                                   
11/30/90     14522.29              13439.96                                   
12/31/90     14978.59              14019.82                                   
01/31/91     15045.01              14077.13                                   
02/28/91     16428.84              15100.37                                   
03/31/91     17148.44              15213.01                                   
04/30/91     17281.28              15194.26                                   
05/31/91     18045.16              15713.88                                   
06/30/91     18067.30              15474.06                                   
07/31/91     18011.95              15696.55                                   
08/31/91     17856.96              15774.78                                   
09/30/91     17259.14              15380.42                                   
10/31/91     18023.02              16117.15                                   
11/30/91     17347.71              15691.20                                   
12/31/91     17627.42              15764.11                                   
01/31/92     17945.13              15903.64                                   
02/29/92     18051.04              15778.39                                   
03/31/92     17545.04              15003.00                                   
04/30/92     17333.23              14750.06                                   
05/31/92     17486.21              14781.51                                   
06/30/92     17392.07              14899.21                                   
07/31/92     17839.23              15353.94                                   
08/31/92     17568.58              15073.09                                   
09/30/92     16815.47              14065.44                                   
10/31/92     16744.87              14331.45                                   
11/30/92     16697.80              13610.56                                   
12/31/92     17121.47              14127.27                                   
01/31/93     17027.20              13986.24                                   
02/28/93     18087.72              14844.82                                   
03/31/93     19077.54              15446.95                                   
04/30/93     19572.44              16106.36                                   
05/31/93     19843.46              16559.37                                   
06/30/93     20856.85              16822.63                                   
07/31/93     20102.70              16806.78                                   
08/31/93     20609.39              17107.05                                   
09/30/93     19596.01              16373.43                                   
10/31/93     20998.25              17654.85                                   
11/30/93     20515.13              17182.05                                   
12/31/93     21482.46              18005.65                                   
01/31/94     22427.27              18880.15                                   
02/28/94     21470.65              18093.83                                   
03/31/94     20679.38              17332.87                                   
04/30/94     20525.85              17106.99                                   

Let's say you invested $10,000 in Fidelity Canada Fund on its start date        
and paid the 3% sales charge. By April 30, 1994, it would have grown to         
$20,526 - a 105.26% increase on your initial investment. That compares to       
$10,000 invested in the Toronto Stock Exchange (TSE) 300 index, which would     
have grown to $17,107 over the same period - a 71.07% increase.                 

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.                                  
(checkmark)                                                                     
CANADA                                                                          
FUND TALK: THE MANAGER'S OVERVIEW                                               

An interview with George Domolky,                                               
Portfolio Manager of Fidelity Canada Fund                                       
Q.  HOW DID THE FUND PERFORM, GEORGE?                                           
A.  The fund suffered a loss of -2.25% for the six months ended April 30,       
1994. But it did outperform the Toronto Stock Exchange 300 index, which         
posted a bigger loss of -3.10%. For the 12 months ended April 30, the fund      
underperformed the index. The fund rose 4.87%, while the index was up           
6.21%.                                                                          
Q.  WHAT ACCOUNTED FOR THE CANADIAN MARKET'S DECLINE?                           
A.  The past six months saw considerable fluctuations in the Canadian           
market. It did very well until the end of January, based on investors'          
hopes for an economic recovery. However, Canadian interest rates started to     
climb in February after the Federal Reserve's actions caused U.S. interest      
rates to rise. That had a negative effect on the stock market in Canada,        
where the economic recovery was just beginning to get off the ground.           
Q.  WHAT WAS THE FUND'S STRATEGY DURING THE PERIOD?                             
A.  I continued to favor industries that would benefit from a stronger          
economy in North American as well as a global economic recovery. Those          
sectors performed well early in the period and declined less than others        
when stock prices declined in Canada. I also favored export-oriented            
companies. They benefited from the weak Canadian dollar, which makes their      
products cheaper to foreign buyers.                                             
Q.  WHICH SECTORS WERE YOUR FAVORITES?                                          
A.  One group I continued to hold was the energy sector. Canada's unique        
position as a supplier of natural gas to the U.S. should continue to            
benefit the fund's major holdings such as Renaissance Energy, Morrison          
Petroleums and Tarragon Oil & Gas. These are companies that are             
well-endowed with natural gas reserves, which are in demand as a cleaner        
alternative to coal and nuclear energy. I also invested a considerable          
stake in stocks of companies that produce base metals such as nickel,           
aluminum and zinc. I believe their prices are expected to pick up as the        
economic recovery in North America and Europe boosts industrial production.     
The fund's largest positions included metals company Noranda. The fund also     
held shares of Alcan Aluminum, and Cominco Co., which is involved in zinc       
production. In addition, I think chemical companies will benefit from           
stronger demand worldwide. That's why the fund owned shares of companies        
such as NOVA Corp., Cominco Fertilizer and Dupont Canada.                       
Q.  YOU CONTINUED TO INVEST A SIGNIFICANT STAKE IN THE FOREST PRODUCTS          
INDUSTRY AS WELL. DO YOU THINK THOSE FIRMS BENEFIT FROM A GLOBAL ECONOMIC       
RECOVERY?                                                                       
A.  Yes. Prices should rise for commodity products such as newsprint and        
market pulp, which is a base material used in the paper-making process.         
That will be good for commodity-oriented forest companies such as Abitibi,      
a newsprint maker, and Noranda Forest. In addition, I believe that the          
chronic lumber shortage in the Western world will support lumber prices.        
That will continue to help companies such as Riverside Forest Products,         
Domain Industries and International Forest Products.                            
Q.  WHAT WERE THE FUND'S DISAPPOINTMENTS DURING THE PERIOD?                     
A.  The groups which have not performed well during the past six months         
include retailers such as Hudson's Bay and Sears Canada. The entry of U.S.      
discount retailer Walmart into the Canadian market created a great deal of      
concern about the earnings outlook for those companies, because their           
competitive environment is expected to tighten significantly. That hurt the     
stock prices.                                                                   
Q.  WHY DOES THE FUND HAVE SUCH A LARGE STAKE IN MEDIA                          
COMPANIES?                                                                      
A.  I believe that advertising revenues will grow as the Canadian economy       
picks up steam, and that will help newspaper and other publishing firms. In     
addition, cable and cellular companies still provide unique technologies        
that will continue to be in demand. The fund's holdings included stocks of      
firms such as Torstar, which publishes the Toronto STAR, and Rogers             
Communications, a diversified media company listed under utilities.             
Q. THERE'S BEEN A LOT OF TALK LATELY ABOUT DERIVATIVES. DO YOU USE THEM?        
A. The fund has the authority to use derivatives, but outside of currency       
contracts I use to settle trades, I haven't made much use of them.              
Q.  WHAT'S THE OUTLOOK FOR THE CANADIAN MARKET AND THE FUND?                    
A. I believe the Canadian economic recovery should strengthen by the end of     
this year, which I think could help support stock prices. Moreover,             
Canadian stocks don't look particularly expensive, so there could be room       
for some gains. The Toronto Stock Exchange 300 index, which represents the      
Canadian stock market, is about at the same level as it was in 1987.            
Finally, as the North American and global economic recovery continues,          
Canada as a provider of base natural resources should benefit from higher       
demand and better prices for Canadian products such as forest products,         
base metals and natural gas. I would caution, however, that the upcoming        
provincial elections in Quebec this fall will raise again the much-debated      
issue of Quebec's status in the Canadian Commonwealth, which could make         
some investors nervous and might not help stock prices.                         

FUND FACTS                                                                      
GOAL: to increase the value of the fund's shares                                
by investing mainly in Canadian common stocks                                   
and convertible securities                                                      
START DATE: November 17, 1987                                                   
SIZE: as of April 30, 1994, more than $172 million                              
MANAGER: George Domolky, since November                                         
17, 1987; manager, Fidelity Select Food &                                   
Agriculture Portfolio, 1985-87; assistant, Fidelity                             
Magellan Fund, 1983-86; joined Fidelity in 1981                                 
(checkmark)                                                                     
GEORGE DOMOLKY ON THE FUND'S STRATEGY:                                          
"I am not an economist or a market forecaster. I am a                           
stock picker. That means I spend most of my energy                              
trying to find companies with strong finances and                               
good markets that can generate good cash flow and                               
profits over time. You don't always find those                                  
companies by scanning financial reports. Instead,                               
you have to go and visit them, which is something I                             
do several times a month. Once I decide that a                                  
company is solid, I consider whether the price of the                           
stock is attractive right now. I figure that if I buy it                        
cheaply enough, it will eventually rise to reflect the                          
value of the firm's assets and earnings potential.                              
Canadian stocks are not always followed as closely                              
as their American counterparts. That means I may                                
be able to find something that has been overlooked                              
by other investors.                                                             
"Recently, I have been investing a significant portion                          
of the fund's investments in stocks that I think will                           
benefit from stronger economic growth around the                                
world. Canada includes many companies that are                                  
well-positioned to benefit from rising demand for                               
natural resource-based products such as timber and                              
natural gas. But the key to my strategy is not to                               
predict when that economic growth will occur.                                   
Instead, it is finding the right companies within the                           
Canadian economy and buying their stocks when                                   
they are attractively priced. "                                                 
(bullet)  24.4% of the fund's investments were                                  
concentrated in energy, metals and mining (7.1%)                                
and media and leisure (8.4%).                                                   
(bullet)  Many of the fund's holdings could benefit from a                      
stronger Canadian economy as well as increased                                  
worldwide demand for natural resource products.                                 
(bullet)  The fund's holdings of retail and wholesale stocks                    
amounted to only 5.2% of its investments as of April                            
30. Fears of increased competition from U.S.                                    
discounter Walmart, which entered the Canadian                                  
market, may have dimmed prospects for those                                     
stocks.                                                                         
CANADA                                                                          
INVESTMENT CHANGES                                                              

GEOGRAPHIC DIVERSIFICATION                                                      
AS OF APRIL 30, 1994                                                            

United States 5.8%                                                              
Row: 1, Col: 1, Value: 5.8                                                      
Row: 1, Col: 2, Value: 94.2                                                     
Canada 94.2%                                                                    
AS OF OCTOBER 31, 1993                                                          
United States 8.2%                                                              
Row: 1, Col: 1, Value: 8.199999999999999                                        
Row: 1, Col: 2, Value: 91.8                                                     
Canada 91.8%                                                                    
ASSET ALLOCATION                                                                
% OF FUND'S   % OF FUND'S     
INVESTMENTS   INVESTMENTS     
          6 MONTHS AGO

Stocks                   96.6          94.3                                     

Bonds                    1.8           0.9                                      

Short-term investments   1.6           4.8                                      

TOP TEN STOCKS                                                                  
                            % OF FUND'S    % OF FUND'S
                            INVESTMENTS    INVESTMENTS
                                            6 MONTHS AGO

Canadian Pacific Ltd. Ord.                                                      
(Railroads)                              3.1            -                       

Noranda, Inc.                                                                   
(Metals & Mining)                    3.1            3.9                     

Morrison Petroleums Ltd.                                                        
(Oil & Gas)                          2.7            2.0                     

Brascan Ltd. Ord. Class A                                                       
(Conglomerates)                          2.3            -                       

Exco Technologies Ltd.                                                          
(Industrial Machinery & Equipment)   2.3            3.0                     

Renaissance Energy Ltd.                                                         
(Oil & Gas)                          2.0            3.6                     

NOVA Corp. of Alberta Class A                                                   
(Chemicals & Plastics)               1.9            -                       

Alcan Aluminum Ltd.                                                             
(Metals & Mining)                    1.8            -                       

Torstar Corp. Class B                                                           
(Publishing)                             1.8            2.8                     

Four Seasons Hotel, Inc.                                                        
(Lodging & Gaming)                   1.8            0.7                     

TOP TEN INDUSTRIES                                                              
                        % OF FUND'S    % OF FUND'S
                        INVESTMENTS    INVESTMENTS
                                        6 MONTHS AGO

Energy                                 24.4           23.9                      

Basic Industries                       21.3           18.9                      

Media & Leisure                    8.4            10.3                      

Industrial Machinery & Equipment   6.9            8.0                       

Precious Metals                        6.4            10.0                      

Retail & Wholesale                 5.2            4.6                       

Transporation                          3.7            -                         

Durables                               3.5            2.6                       

Utilities                              3.1            4.4                       

Nondurables                            3.1            2.4                       

CANADA                                                                          
INVESTMENTS APRIL 30, 1994 (UNAUDITED)                                          

Showing Percentage of Total Value of Investment in Securities                   

COMMON STOCKS - 96.5%                                                           
SHARES VALUE (NOTE 1)                                                         
BASIC INDUSTRIES - 20.7%                                                        
CHEMICALS & PLASTICS - 5.6%                                                 
AT Plastics, Inc.   50,000 $ 302,849  00194710                                  
Cominco Fertilizer Ltd.   50,000  940,189  20043C10                             
Dupont Canada Class A, Series 1  8,900  334,707  26590210                       
Intertape Polymer Group, Inc.   52,000  808,563  46091910                       
Maax, Inc. (b)  278,300  2,641,707  57777C10                                    
Maax, Inc. (warrants) (b)  8,333  40,680  57777C11                              
NOVA Corp. of Alberta Class A  424,900  3,265,034  66977110                     
Tarxien Corp.   70,000  784,696  87651E20                                       
Winpak Ltd.   30,000  515,296  97535P10                                         
9,633,721                                                                   
IRON & STEEL - 0.9%                                                         
Co-Steel, Inc. (sub.-vtg.) (b)  31,200  609,243  18975N10                       
Linamar Corp.   30,000  496,312  53278L10                                       
Samuel Manu-Tech, Inc.   25,000  433,933  79606J10                              
Shaw Industries Ltd. Class A  6,300  54,676  82090420                           
1,594,164                                                                   
METALS & MINING - 7.1%                                                      
Alcan Aluminium Ltd.   150,210  3,150,423  01371610                             
American Gem Corp.   30,000  107,398  0263E108                                  
Cameco, Inc.   30,000  507,160  13321L10                                        
Cominco Ltd.   123,200  1,882,259  20043510                                     
Dia Met Minerals Ltd. (b)  28,000  559,413  25243K10                            
Kookaburra Resources Ltd.   150,000  234,324  50050D10                          
Noranda, Inc.   307,944  5,372,930  65542210                                    
Southernera Resources Ltd. (b)  57,000  273,107  84390110                       
12,087,014                                                                  
PAPER & FOREST PRODUCTS - 7.1%                                              
Abitibi-Price, Inc.   175,900  2,083,143  00368010                              
Abitibi-Price, Inc. installment receipts (d)  9,200  49,071  00368070           
Ainsworth Lumber Ltd. (b)  50,000  555,977  00891410                            
Avenor, Inc.   48,000  733,348  05356K10                                        
Canfor Corp.   18,000  572,792  13790210                                        
Domain Industries Ltd. Class B (non-vtg.),                                      
Series 2  40,000  437,550  25703930                                           
Donohue, Inc. Class B (b)  41,600  394,880  25804110                            
Fletcher Challenge  Ltd.:                                                       
Class A  91,639  1,292,370  33932D10                                          
Receipts  10,000  83,171  33932D20                                            
International Forest Products Class A (b)  50,000  587,618  45953E10            
Longview Fibre Co.   10,000  176,250  54321310                                  
Merfin Hygenic Products Ltd. (b)  543,700  1,612,185  58950K10                  
Noranda Forest, Inc. (b)  177,000  1,664,135  65542L10                          
Norwall Group, Inc.   40,000  336,298  66920H10                                 
Pacific Forest Products Ltd.   10,000  115,716  69428P10                        
Riverside Forest Products  56,100  1,024,463  76890410                          
Slocan Forest Products Ltd.   18,900  377,604  83158C10                         
12,096,571                                                                  
TOTAL BASIC INDUSTRIES   35,411,470                                             
CONGLOMERATES - 3.0%                                                            
Brascan Ltd. Class A  310,000  3,951,508  10550240                              
Federal Industries Ltd. Class A cv (b)  49,800  270,124  31345330               
Suncor, Inc.   40,000  904,028  86722910                                        
5,125,660                                                                   
CONSTRUCTION & REAL ESTATE - 1.8%                                           
BUILDING MATERIALS - 0.2%                                                       
Global Stone (b)  100,000  357,995  37936Q10                                    
CONSTRUCTION - 0.6%                                                             
Firan Corp. (special warrants) (b)(c)  150,000  458,668  31809192               
Royal Lepage Ltd. (b)  100,000  289,289  78033W10                               
Viceroy Homes Ltd. Class A  109,100  335,341  92562710                          
1,083,298                                                                   

SHARES VALUE (NOTE 1)                                                         

ENGINEERING - 0.1%                                                              
Agra Industries Ltd. Class B (b)  20,000 $ 106,675  00848940                    
REAL ESTATE - 0.9%                                                              
Cambridge Shopping Centres Ltd.   105,900  1,225,428  13250910                  
Markborough Properties, Inc.   200,000  390,540  57052F10                       
1,615,968                                                                   
TOTAL CONSTRUCTION & REAL ESTATE   3,163,936                                
DURABLES - 3.5%                                                                 
AUTOS, TIRES, & ACCESSORIES - 1.8%                                          
Hayes-Dana, Inc.   11,300  131,780  42077610                                    
Meridian Technologies, Inc. (b)  214,600  1,493,835  58978510                   
Stackpole Ltd. (b)  105,000  968,214  85232N10                                  
UAP, Inc. Class A  30,100  481,639  90255810                                    
3,075,468                                                                   
CONSUMER DURABLES - 0.4%                                                        
Unican Security Systems Ltd. Class B  45,000  691,582  90458940                 
HOME FURNISHINGS - 1.3%                                                         
Dorel Industries:                                                               
Class A (vtg.) (c)  105,000  816,337  25822C30                                
Class B (sub.-vtg.) (b)(c)  82,000  652,347  25822C20                         
Leons Furniture Ltd.  80,000  694,294  52668210                                 
2,162,978                                                                   
TOTAL DURABLES   5,930,028                                                      
ENERGY - 24.4%                                                                  
ENERGY SERVICES - 1.8%                                                          
Akita Drilling Ltd. Class A (non-vtg.) (b)  60,700  175,598  00990510           
Dreco Energy Services Ltd. Class A (b)  5,700  52,725  26152820                 
Enserv Corp. (b)  84,700  888,226  29357B10                                     
Nowsco Well Service Ltd.   77,000  1,280,827  67012210                          
Precision Drilling Class A (b)  53,900  638,325  74022D10                       
3,035,701                                                                   
OIL & GAS - 22.6%                                                           
Anderson Exploration Ltd. (b)  5,400  133,272  03390110                         
Archer Resources Ltd. (b)  59,700  825,748  03950K10                            
Ballistic Energy Corp.   20,000  108,483  05865K10                              
Battle Creek Developments Ltd. (b)  220,000  410,500  07134E10                  
Beau Canada Exploration  600,000  985,032  07428010                             
Canadian Natural Resources Ltd. (b)  67,900  1,012,828  13638510                
Canadian Occidental Petroleum Ltd.   90,000  1,822,522  13642010                
Chancellor Energy Resources (b)  380,000  769,508  15882910                     
Czar Resources Ltd. (b)  105,600  141,289  23282910                             
DEKALB Energy Corp. Class B (b)  79,500  1,113,000  24487410                    
Dorset Exploration Ltd. (b)  241,200  2,071,491  25842E10                       
Encal Energy Ltd. (b)  515,900  1,026,053  29250D10                             
Ensign Resource Service Group Ord. (b)  81,900  399,815  29357T10               
Excel Energy, Inc. (warrants) (b)  25,000  3,616  30065492                      
Gardiner Oil & Gas, Ltd. (b)  104,400  575,721  36553R10                    
Grad & Walker Energy Corp.   54,400  580,314  38391010                      
Gulf Canada Corp. (b)  50,000  166,341  40218L30                                
HCO Energy Ltd.   70,000  106,314  40390410                                     
Intensity Resources Ltd. (b)  342,900  709,261  45816E10                        
Inverness Petroleum Ltd. (b)  409,300  3,034,153  46190810                      
Jordan Petroleum Ltd. Class A (b)  3,000  21,154  48076110                      
Morgan Hydrocarbons, Inc. (b)  247,000  982,497  61790010                       
Morrison Petroleums Ltd.   566,500  4,660,403  61847310                         
Northridge Exploration Ltd. (b)  100,800  72,172  66667T10                      
Northstar Energy Corp. (b)  20,200  427,316  66703R10                           
Nugas Ltd.   30,000  101,974  67051K10                                          
Pancanadian Petroleum Ltd.   24,200  774,463  69890020                          
Paramount Resources Ltd. (b)  86,800  1,263,362  69932010                       
COMMON STOCKS - CONTINUED                                                       
SHARES VALUE (NOTE 1)                                                         
ENERGY - CONTINUED                                                              
OIL & GAS - CONTINUED                                                       
Plastibec Ltd. (special warrants) (b)  60,000 $ 278,282  72753D92               
Poco Petroleums Ltd. (b)  190,000  1,425,654  73036110                          
Remington Energy Ltd.   25,000  66,898  75958D10                                
Renaissance Energy Ltd. (b)  149,622  3,354,510  75966610                       
Richland Petroleum Corp. Class A  56,800  195,126  76390110                     
Rigel Energy Corp. (b)  73,000  1,062,505  76655L10                             
Rio Alto Exploration Ltd. (b)  93,300  598,855  76689210                        
Summit Resources Ltd.   85,600  588,125  86624610                               
Talisman Energy, Inc. (b)  105,000  2,420,536  87425E10                         
Tarragon Oil & Gas Ltd. (b)  257,000  3,020,359  87629E20                   
Tri Link Resources Ltd. Class A (b)  64,900  574,980  89557D10                  
Ulster Petroleums Ltd. (b)  50,000  159,109  90384010                           
Wascana Energy, Inc.   36,500  263,976  93690110                                
Winfield Energy Ltd.   160,000  543,864  97390510                               
38,851,381                                                                  
TOTAL ENERGY   41,887,082                                                       
FINANCE - 2.9%                                                                  
CREDIT & OTHER FINANCE - 0.9%                                               
Power Corporation of Canada  55,000  835,322  73923910                          
Trimark Financial Corp. (b)  26,400  706,444  89621H10                          
1,541,766                                                                   
INSURANCE - 0.3%                                                                
Crownx, Inc. Class A (b)  101,500  587,257  22870220                            
SECURITIES INDUSTRY - 1.7%                                                      
First Marathon, Inc. Class A (non-vtg.)  66,200  694,222  32076L20              
Investors Group, Inc.   40,000  542,417  46152H10                               
Mackenzie Financial Corp.  151,000  1,051,114  55453110                         
Power Financial Corp.   20,000  482,751  73927C10                               
20/20 Financial Corp.   11,900  109,731  90136T10                               
2,880,235                                                                   
TOTAL FINANCE   5,009,258                                                       
HEALTH - 0.6%                                                                   
DRUGS & PHARMACEUTICALS - 0.4%                                              
Allelix Biopharmaceuticals, Inc.   10,000  50,626  01749H10                     
Zenon Environmental, Inc.   78,200  551,421  98942B10                           
602,047                                                                     
MEDICAL FACILITIES MANAGEMENT - 0.2%                                            
Spectral Diagnostics, Inc.   10,000  263,976  84757410                          
TOTAL HEALTH   866,023                                                          
INDUSTRIAL MACHINERY & EQUIPMENT - 6.9%                                     
ELECTRICAL EQUIPMENT - 0.1%                                                     
Noma Industries Ltd. Class A (b)(c)  26,200  111,322  65531630                  
INDUSTRIAL MACHINERY & EQUIPMENT - 6.8%                                     
Champion Road Machinery Ltd. (c)  20,000  178,998  15864C92                     
Eagle Precision Tech. (b)  178,500  1,355,500  26990010                         
Enerflex Systems Ltd.   15,000  197,982  29265B10                               
Exco Technologies Ltd. (b)  572,800  3,935,491  30150P10                        
Finning Ltd.   118,300  1,946,428  31807140                                     
Hawker Siddeley Canada, Inc.                                                    
(special warrants) (b)  35,700  570,291  42012892                             
Laperriere & Verreault, Inc. (b)  11,300  21,657  39945L20                  
Osmonics, Inc.   15,000  238,125  68835010                                      
Trojan Technologies Corp. (b)  290,400  2,599,045  89692410                     
Valmont Industries, Inc.   48,700  754,850  92025310                            
11,798,367                                                                  
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT   11,909,689                         

SHARES VALUE (NOTE 1)                                                         
MEDIA & LEISURE - 8.4%                                                      
BROADCASTING - 0.8%                                                             
Chum Ltd. Class B (b)  7,000 $ 97,454  17132220                                 
Cogeco, Inc.   40,000  339,915  19238T10                                        
Shaw Cablesystems Ltd. Class B cv (b)(c)  44,000  815,434  82028K20             
Videotron Group Ltd.   16,800  174,658  92558H10                                
1,427,461                                                                   
ENTERTAINMENT - 1.2%                                                            
Astral Bellevue Pathe, Inc. Class A  122,000  1,510,993  04634620               
Cinar Films, Inc. (b)  82,000  511,500  17190510                                
2,022,493                                                                   
LODGING & GAMING - 1.8%                                                     
Four Seasons Hotels, Inc.   351,500  3,114,107  35100E10                        
PUBLISHING - 4.4%                                                               
Hollinger, Inc. (b)  30,000  339,010  43556C10                                  
Southam, Inc.   135,100  1,856,440  84084010                                    
Thomson Corp.   171,798  2,158,812  88490310                                    
Toronto Sun Publishing Co. (b)  8,000  88,956  89199110                         
Torstar Corp. Class B  169,000  3,116,728  89147420                             
7,559,946                                                                   
RESTAURANTS - 0.2%                                                              
Cara Operations Ltd. (b)  91,500  271,317  14075420                             
Spectra Group of Great Restaurants, Inc.                                        
Class A (non-vtg.)  4,900  24,807  84756E20                                   
296,124                                                                     
TOTAL MEDIA & LEISURE   14,420,131                                          
NONDURABLES - 3.1%                                                              
AGRICULTURE - 0.1%                                                              
Chai-Na-Ta Ginseng Products (b)  20,705  97,333  15745J10                       
DEKALB Genetics Corp. Class B  4,900  155,575  24487820                         
252,908                                                                     
BEVERAGES - 0.3%                                                                
Coca Cola Beverages Canada  100,000  347,147  19108T10                          
Corby Distilleries Ltd.   6,000  160,555  21834310                              
507,702                                                                     
FOODS - 2.7%                                                                    
Ault Foods Ltd.   197,300  2,247,397  05150E10                                  
Tootsie Roll Industries, Inc.   9,937  638,452  89051610                        
Weston George Ltd.   55,000  1,710,422  96114850                                
4,596,271                                                                   
TOTAL NONDURABLES   5,356,881                                                   
PRECIOUS METALS - 6.2%                                                          
Aber Resources Ltd.   80,000  248,789  00291110                                 
Agnico Eagle Mines Ltd.   66,000  721,957  00847410                             
American Barrick Resources Corp.   45,000  1,037,372  02451E10                  
Canaarc Resources Corp.   10,000  32,545  13722D10                              
Euro-Nevada Mining Corp.   43,000  1,166,197  29870P10                          
Franco Nevada Mining Corp.   35,600  1,834,454  35186010                        
Pegasus Gold, Inc.   50,000  818,145  70556K10                                  
Placer Dome, Inc.   140,000  2,885,659  72590610                                
Prime Resources Group, Inc. (b)  50,300  327,403  74157L10                      
Rayrock Yellowknife Resources, Inc. (b)  46,200  639,021  75509N10              
Teck Corp. Class B (sub.-vtg.)  50,000  858,827  87874220                       
Viceroy Resources Corp. (b)  10,000  74,130  92564C10                           
10,644,499                                                                  
RETAIL & WHOLESALE - 5.2%                                                   
GENERAL MERCHANDISE STORES - 1.3%                                               
Hudson's Bay Co. Ord.   46,000  952,303  44420410                               
Sears Canada, Inc.   200,000  1,175,236  81234D10                               
2,127,539                                                                   
COMMON STOCKS - CONTINUED                                                       
SHARES VALUE (NOTE 1)                                                         
RETAIL & WHOLESALE - CONTINUED                                              
GROCERY STORES - 3.7%                                                           
Empire Ltd. Class A  19,600 $ 228,575  29184340                                 
Loblaw Companies Ltd.   70,100  1,204,075  53948110                             
Oshawa Group Ltd. Class A  45,000  703,786  68820520                            
Stop & Shop Companies, Inc. (b)  99,800  2,669,650  86209910                
Van Houtte (A.L.) (b)  175,500  1,602,436  92090410                             
6,408,522                                                                   
RETAIL & WHOLESALE, MISCELLANEOUS - 0.2%                                    
Forzani Group Ltd. Class A  40,000  303,754  34990710                           
TOTAL RETAIL & WHOLESALE   8,839,815                                        
SERVICES - 1.5%                                                                 
PRINTING - 0.7%                                                                 
GTC Transcontinental Group Class A  74,900  473,982  36229K20                   
MDC Corp. Class A (sub.-vtg.) (b)  150,000  297,792  55267W10                   
Moore Corporation Ltd.   20,000  363,419  61578510                              
1,135,193                                                                   
SERVICES - 0.8%                                                                 
Arbor Memorial Services, Inc. Class B                                           
(non-vtg.) (b)  43,300  454,075  03891620                                     
G&K Services, Inc. Class A  67,500  961,875  36126810                       
1,415,950                                                                   
TOTAL SERVICES   2,551,143                                                      
TECHNOLOGY - 1.5%                                                               
COMMUNICATIONS EQUIPMENT - 0.5%                                                 
Northern Telecom Ltd.   10,000  297,425  66581510                               
SR Telecom, Inc.   44,100  430,571  78464P10                                    
Telular Canada, Inc.   66,000  162,291  87970B10                                
890,287                                                                     
COMPUTER SERVICES & SOFTWARE - 0.7%                                         
EICON Technology Corp. (b)  45,000  423,085  28248F10                           
Electronic Retailing Systems (b)  34,500  310,500  28582510                     
ISG Technologies, Inc. (b)  5,000  42,500  45021P30                             
Telepanel Systems, Inc.   95,000  446,590  87943U20                             
1,222,675                                                                   
ELECTRONIC INSTRUMENTS - 0.3%                                                   
Mosaid Technologies, Inc.   69,300  488,663  61945Q10                           
TOTAL TECHNOLOGY   2,601,625                                                    
TRANSPORTATION - 3.7%                                                           
AIR TRANSPORTATION - 0.6%                                                       
Air Canada, Inc. (b)  225,000  1,078,054  00891110                              
RAILROADS - 3.1%                                                                
Canadian Pacific Ltd. Ord.   334,000  5,374,628  13644030                       
TOTAL TRANSPORTATION   6,452,682                                                
UTILITIES - 3.1%                                                                
CELLULAR - 3.1%                                                                 
BCE Mobile Communications, Inc.   26,900  739,278  05534G10                     
Call-Net Enterprises, Inc. (b)  78,000  564,114  13091010                       
Call-Net Enterprises (non-vtg.) Class B (b)  78,000  542,960  13091020          
Rogers Cantel Mobile Communications,                                            
Inc. Class B (non-vtg.) (b)  20,000  493,599  77510210                        
Rogers Communications, Inc. Class B (b)  208,600  3,017,283  77510920           
5,357,234                                                                   
TOTAL COMMON STOCKS                                                             
(Cost $162,291,937)   165,527,156                                             
CONVERTIBLE PREFERRED STOCKS - 0.1%                                             
SHARES VALUE (NOTE 1)                                                         
ENERGY - 0.0%                                                                   
OIL & GAS - 0.0%                                                            
Valero Energy Corp. $3.125  2,000 $ 100,250  91913840                           
PRECIOUS METALS - 0.1%                                                          
Battle Gold Co.   2,000  119,000  07159330                                      
TOTAL CONVERTIBLE PREFERRED STOCKS                                              
(Cost $200,000)   219,250                                                     
CORPORATE BONDS - 1.8%                                                          
MOODY'S PRINCIPAL VALUE (NOTE 1)                                              
RATINGS (D) AMOUNT (A)                                                        
CONVERTIBLE BONDS - 1.7%                                                        
BASIC INDUSTRIES - 0.6%                                                         
PAPER & FOREST PRODUCTS - 0.6%                                              
Abitibi-Price, Inc.  7.85%,                                                     
3/1/03 - CAD 1,000,000  914,877  003680AD                                     
Avenor, Inc. 7 1/2%, 2/8/04  - CAD 147,000  129,171  05356KAA                   
1,044,048                                                                   
CONSTRUCTION & REAL ESTATE - 1.1%                                           
REAL ESTATE - 1.1%                                                              
Markborough Properties, Inc.                                                    
6%, 3/14/04 - CAD 2,700,000  1,816,012  57052FAA                              
TOTAL CONVERTIBLE BONDS   2,860,060                                             
NONCONVERTIBLE BONDS - 0.1%                                                     
PRECIOUS METALS - 0.1%                                                          
Agnico Eagle Mines Ltd. yankee                                                  
3 1/2%, 1/27/04 B1 $ 220,000  173,800  008474AA                               
TOTAL CORPORATE BONDS                                                           
(Cost $3,164,689)   3,033,860                                                 
REPURCHASE AGREEMENTS - 1.6%                                                    
MATURITY                                                                      
AMOUNT                                                                        
Investments in repurchase agreements                                            
(U.S. Treasury obligations), in a joint                                       
trading account at 3.56% dated                                                
4/29/94 due 5/2/94  $ 2,743,814  2,743,000                                    
TOTAL INVESTMENT IN SECURITIES - 100%                                           
(Cost $168,399,626)  $ 171,523,266                                            
CURRENCY ABBREVIATIONS                                                          
CAD - Canadian dollar                                                           
LEGEND                                                                          
1. Principal amount is stated in United States dollars unless otherwise         
noted.                                                                          
2. Non-income producing                                                         
3. 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 $3,033,106 or 1.8% of net        
assets.                                                                         
4. Market value reflects the payment of the first installment. Additional       
equal payments of CAD 46,000 are payable in January and October of 1995.        
5. Standard & Poor's Corporation credit ratings are used in the absence     
of a rating by Moody's Investors Service, Inc.                                  
OTHER INFORMATION                                                               
Purchases and sales of securities, other than short-term securities,            
aggregated $115,703,067 and $31,649,352 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 $4,328 for the period (see Note 4 of Notes to Financial              
Statements).                                                                    
The fund participated in the bank borrowing program. The maximum loan and       
the average daily loan balances during the period for which loans were          
outstanding amounted to $1,799,400 and $3,867,000, respectively. The            
weighted average interest rate was 4.15%. Interest expense includes $1,037      
paid under the bank borrowing program (see Note 5 of Notes to Financial         
Statements).                                                                    
INCOME TAX INFORMATION                                                          
At April 30, 1994, the aggregate cost of investment securities for income       
tax purposes was $168,969,425. Net unrealized appreciation  aggregated          
$2,553,841, of which $13,476,104 related to appreciated investment              
securities and $10,922,263 related to depreciated investment securities.        

CANADA                                                                          
FINANCIAL STATEMENTS                                                            

STATEMENT OF ASSETS AND LIABILITIES                                             

                                                        · Enlarge/Download Table

                                                                                                                                 
 APRIL 30, 1994 (UNAUDITED)                                                                                                      

ASSETS                                                                                                                           

Investment in securities, at value (including repurchase agreements of $2,743,000) (cost $168,399,626) (Notes       $ 171,523,266
1 and 2) - See accompanying schedule                                                                                             

Cash                                                                                                                 594         

Receivable for investments sold                                                                                      1,065,839   

Receivable for fund shares sold                                                                                      776,907     

Dividends receivable                                                                                                 142,923     

Interest receivable                                                                                                  29,113      

Other receivables                                                                                                    36,832      

 TOTAL ASSETS                                                                                                     173,575,474    

LIABILITIES                                                                                                                      

Payable for fund shares redeemed                                                                       $ 484,691                 

Payable for investments purchased                                                                       712                      

Accrued management fee                                                                                  110,474                  

Other payables and accrued expenses                                                                     149,669                  

 TOTAL LIABILITIES                                                                                                   745,546     

NET ASSETS                                                                                                     $ 172,829,928     

Net Assets consist of (Note 1):                                                                                                  

Paid in capital                                                                                                    $ 171,814,078 

Accumulated net investment (loss)                                                                                (336,797        
                                                                                                                   )             

Accumulated undistributed net realized gain (loss) on investments                                                 (1,770,993     
                                                                                                                   )             

Net unrealized appreciation (depreciation) on investment securities                                               3,123,640      

NET ASSETS, for 9,943,673 shares outstanding                                                                       $ 172,829,928 

NET ASSET VALUE, offering price and redemption price per share ($172,829,928 (divided by) 9,943,673 shares)(Note 4)  $17.38      


STATEMENT OF OPERATIONS                                                         

                                                        · Enlarge/Download Table

                                                                                                      
 SIX MONTHS ENDED APRIL 30, 1994 (UNAUDITED)                                                          

INVESTMENT INCOME                                                                         $ 845,922   
Dividends                                                                                             

Interest                                                                                   180,908    

                                                                                           1,026,830  

Less foreign taxes withheld (Note 1)                                                       (123,466   
                                                                                          )           

 TOTAL INCOME                                                                              903,364    

EXPENSES                                                                                              

Management fee (Note 4)                                                        $ 553,812              
Basic fee                                                                                             

 Performance adjustment                                                         39,161                

Transfer agent fees (Note 4)                                                    540,228               

Accounting fees and expenses                                                    43,938                
(Note 4)                                                                                              

Non-interested trustees' compensation                                           402                   

Custodian fees and expenses                                                     19,938                

Registration fees                                                               25,265                

Audit                                                                           14,666                

Legal                                                                           833                   

Interest (Note 5)                                                               1,037                 

Miscellaneous                                                                   758                   

 TOTAL EXPENSES                                                                            1,240,038  

NET INVESTMENT INCOME (LOSS)                                                               (336,674   
                                                                                          )           

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 1)                                (1,128,584 
Net realized gain (loss) on investment securities                                         )           

Change in net unrealized appreciation (depreciation) on investment securities              (7,374,818 
                                                                                          )           

NET GAIN (LOSS)                                                                            (8,503,402 
                                                                                          )           

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS                           $ (8,840,076
                                                                                          )           

OTHER INFORMATION                                                                                     

 Deferred sales charges withheld by                                                        $3,432     
 FDC (Note 4)                                                                                         

 Accounting fees paid to FSC                                                               $43,756    
 (Note 4)                                                                                             


STATEMENT OF CHANGES IN NET ASSETS                                              

                                                        · Enlarge/Download Table

                                                                                                                           
INCREASE (DECREASE) IN NET ASSETS                                                          SIX MONTHS        YEAR ENDED    
                                                                                           ENDED APRIL 30,   OCTOBER 31,   
                                                                                           1994              1993          
                                                                                           (UNAUDITED)                     

Operations                                                                                 $ (336,674        $ (406,210    
Net investment income (loss)                                                               )                 )             

 Net realized gain (loss) on investments                                                    (1,128,584        (215,792     
                                                                                            )                 )            

 Change in net unrealized appreciation (depreciation) on investments                        (7,374,818        9,798,514    
                                                                                            )                              

 NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS                            (8,840,076        9,176,512    
                                                                                            )                              

Distributions to shareholders                                                                -                 (30,615     
From net investment income                                                                                )                

 In excess of net realized gain                                                              (242,990          -           
                                                                                            )                              

 TOTAL DISTRIBUTIONS                                                                         (242,990          (30,615     
                                                                                            )                 )            

Share transactions                                                                          214,691,266       232,403,520  
Net proceeds from sales of shares                                                                                          

 Reinvestment of distributions                                                               238,389           29,289      

 Cost of shares redeemed                                                                     (128,994,157      (167,302,323
                                                                                            )                 )            

 Net increase (decrease) in net assets resulting from share transactions                     85,935,498        65,130,486  

  TOTAL INCREASE (DECREASE) IN NET ASSETS                                                    76,852,432        74,276,383  

NET ASSETS                                                                                                                 

 Beginning of period                                                                         95,977,496        21,701,113  

 End of period (including accumulated net investment (loss) of $(336,797) and $(237,885),                                  
respectively)                                                                              $ 172,829,928     $ 95,977,496  

OTHER INFORMATION                                                                                                          
Shares                                                                                                                     

 Sold                                                                                      11,692,592        13,751,993    

 Issued in reinvestment of distributions                                                    13,408            2,020        

 Redeemed                                                                                   (7,146,795        (9,894,449   
                                                                                            )                 )            

 Net increase (decrease)                                                                     4,559,205         3,859,564   

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.                                                   


FINANCIAL HIGHLIGHTS                                                            

                                                        · Enlarge/Download Table

                                                                                                         
                                                                                                         

SIX MONTHS        YEARS ENDED OCTOBER 31,                                                                

 ENDED                                                                                                   

APRIL 30, 1994                                                                                           

(UNAUDITED)                                                                                              

SELECTED PER-SHARE DATA                                                                                  
                    1993                      1992       1991       1990       1989                      

Net asset value, beginning of period                                                                     
$ 17.82           $ 14.23                   $ 16.28    $ 13.57    $ 15.45    $ 12.74                     

Income from Investment Operations                                                                        

 Net investment income                                                                                   
(.03)             (.15)                     (.02)**    .03**      .05**      .02**                       

 Net realized and unrealized gain (loss) on investments                                                  
(.37)             3.76                      (1.11)     3.59       (1.24)     2.96                        

 Total from investment operations                                                                        
(.40)             3.61                      (1.13)     3.62       (1.19)     2.98                        

Less Distributions                                                                                       

From net investment income                                                                               
-                 (.02)                     -          (.06)      (.01)      (.12)                       

 From net realized gain                                                                                  
 -                 -                         (.92)      (.85)      (.68)      (.15)(s diamond)           

 In excess of net realized gain                                                                          
(.04)             -                         -          -          -          -                           

 Total distributions                                                                                     
(.04)             (.02)                     (.92)      (.91)      (.69)      (.27)                       

Net asset value, end of period                                                                           
 $ 17.38           $ 17.82                   $ 14.23    $ 16.28    $ 13.57    $ 15.45                    

TOTAL RETURN (dagger)(diamond)                                                                           
(2.25)%           25.40%                    (7.09)%    28.13%     (8.16)%    23.94%                      

RATIOS AND SUPPLEMENTAL DATA                                                                             

Net assets, end of period (000 omitted)                                                                  
 $ 172,830         $ 95,977                  $ 21,701   $ 23,327   $ 17,736   $ 24,331                   

Ratio of expenses to average net assets                                                                  
 1.74%*            2.00%                     2.00%      2.01%      2.05%      2.06%                      

Ratio of expenses to average net assets before expense                                                   
 1.74%*            2.00%                     2.07%      2.26%      2.31%      2.87%                      
reductions                                                                                               

Ratio of net investment income to average net assets                                                     
(.47)%*           (.66)%                    (.11)%     .17%       .34%       .16%                        

Portfolio turnover rate                                                                                  
47%*              131%                      55%        68%        164%       152%                        

* ANNUALIZED                                                                                             
** NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED USING AVERAGE SHARES OUTSTANDING.          
(s diamond) INCLUDES AMOUNTS DISTRIBUTED FROM NET REALIZED GAINS ON FOREIGN CURRENCY RELATED TRANSACTIONS
TAXABLE AS ORDINARY INCOME.                                                                              
(diamond) THE TOTAL RETURN WOULD HAVE BEEN LOWER IF THE ADVISER HAD NOT REDUCED EXPENSES OF THE FUND     
DURING THE PERIODS SHOWN.                                                                                
(dagger) TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR    
ARE NOT ANNUALIZED.                                                                                      


EUROPE                                                                          
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.                                                                
CUMULATIVE TOTAL RETURNS                                                        
PERIODS ENDED              PAST 6   PAST 1   PAST 5   LIFE OF                   
APRIL 30, 1994             MONTHS   YEAR     YEARS    FUND                      

EUROPE                     9.09%    20.90%   53.27%   124.39%                   

EUROPE                                                                          
(INCL. 3% SALES CHARGE)   5.82%    17.27%   48.67%   117.66%                  

Morgan Stanley Europe                                                           
Index                     7.90%    21.81%   66.54%   130.43%                  

Average European Region                                                         
Fund                      9.07%    23.06%   47.29%   n/a                      

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms        
over a set period - in this case, six months, one year, five years, or          
since the fund started on October 1, 1986. You can compare the fund's           
figures to the performance of the Morgan Stanley Europe index - a broad         
measure of the performance of stocks in Europe, weighted by each country's      
market capitalization (or the total value of its outstanding shares). You       
can also compare the fund's performance to the average European region fund     
which reflects the performance of 33 funds with similar objectives tracked      
by Lipper Analytical Services. These benchmarks include reinvested              
dividends and capital gains, if any, and exclude the effects of sales           
charges.                                                                        
AVERAGE ANNUAL TOTAL RETURNS                                                    
PERIODS ENDED              PAST 1   PAST 5   LIFE OF                            
APRIL 30, 1994             YEAR     YEARS    FUND                               

EUROPE                     20.90%   8.92%    11.24%                             

EUROPE                                                                          
(INCL. 3% SALES CHARGE)   17.27%   8.25%    10.80%                            

Morgan Stanley Europe                                                           
Index                     21.81%   10.74%   11.63%                            

Average European Region                                                         
Fund                      23.06%   7.89%    n/a                               

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return      
and show you what would have happened if the fund had performed at a            
constant rate each year.                                                        
$10,000 OVER LIFE OF FUND                                                       
Europe (301) MS Europe Index                                
10/01/86      9700.00       10000.00                                          
10/31/86      9690.30       10061.24                                          
11/30/86     10078.30       10600.17                                          
12/31/86     10485.70       10866.14                                          
01/31/87     11563.06       11347.33                                          
02/28/87     12300.92       11751.88                                          
03/31/87     12922.28       12332.46                                          
04/30/87     13456.26       12815.21                                          
05/31/87     13679.56       12743.90                                          
06/30/87     14232.95       13107.17                                          
07/31/87     15252.37       13548.56                                          
08/31/87     15572.75       13660.75                                          
09/30/87     16135.86       13749.78                                          
10/31/87     11737.82       11135.61                                          
11/30/87     11213.55       10645.49                                          
12/31/87     12048.50       11264.74                                          
01/31/88     11475.68       10802.62                                          
02/29/88     11533.94       11438.32                                          
03/31/88     12067.91       11753.00                                          
04/30/88     12407.72       11972.00                                          
05/31/88     12271.80       11748.03                                          
06/30/88     11999.95       11629.54                                          
07/31/88     11873.74       11655.59                                          
08/31/88     11252.38       11126.51                                          
09/30/88     11776.65       11732.04                                          
10/31/88     12582.48       12818.60                                          
11/30/88     12737.81       12976.68                                          
12/31/88     12751.83       13046.37                                          
01/31/89     13357.17       13518.81                                          
02/28/89     13386.94       13365.30                                          
03/31/89     13615.18       13462.17                                          
04/30/89     14200.67       13835.82                                          
05/31/89     13813.65       13126.86                                          
06/30/89     14190.75       13668.45                                          
07/31/89     15460.97       15277.34                                          
08/31/89     15341.89       15086.51                                          
09/30/89     16036.54       15345.58                                          
10/31/89     14925.09       14339.46                                          
11/30/89     15798.37       15135.61                                          
12/31/89     16874.84       16764.74                                          
01/31/90     17085.65       16719.83                                          
02/28/90     16643.95       16319.18                                          
03/31/90     17145.88       16549.43                                          
04/30/90     16804.57       16110.24                                          
05/31/90     17838.54       17421.38                                          
06/30/90     18581.39       18033.25                                          
07/31/90     19705.71       18792.65                                          
08/31/90     17356.69       16929.38                                          
09/30/90     15640.09       14935.59                                          
10/31/90     16342.79       16194.23                                          
11/30/90     16322.71       16356.96                                          
12/31/90     16100.11       16120.73                                          
01/31/91     16418.62       16663.17                                          
02/28/91     17415.24       18120.73                                          
03/31/91     16480.27       16904.64                                          
04/30/91     16439.17       16727.91                                          
05/31/91     16511.09       17221.35                                          
06/30/91     15062.39       15776.03                                          
07/31/91     15822.70       16867.89                                          
08/31/91     16141.21       17175.85                                          
09/30/91     16726.85       17692.04                                          
10/31/91     16367.25       17319.34                                          
11/30/91     15874.07       16911.64                                          
12/31/91     16769.90       18234.47                                          
01/31/92     16844.24       18229.22                                          
02/29/92     17046.03       18299.21                                          
03/31/92     16461.90       17658.79                                          
04/30/92     17545.20       18633.42                                          
05/31/92     18405.47       19693.79                                          
06/30/92     18235.54       19327.03                                          
07/31/92     17577.06       18636.54                                          
08/31/92     17630.16       18575.77                                          
09/30/92     17354.03       18268.54                                          
10/31/92     16058.32       16993.88                                          
11/30/92     16047.70       16985.58                                          
12/31/92     16346.72       17375.24                                          
01/31/93     16260.11       17404.43                                          
02/28/93     16357.54       17603.55                                          
03/31/93     17429.28       18509.13                                          
04/30/93     18003.04       18917.36                                          
05/31/93     18219.55       19120.87                                          
06/30/93     17710.75       18841.54                                          
07/31/93     17721.57       18906.21                                          
08/31/93     19161.38       20565.25                                          
09/30/93     19139.73       20501.36                                          
10/31/93     19951.65       21355.45                                          
11/30/93     19561.93       20894.47                                          
12/31/93     20787.26       22463.18                                          
01/31/94     22287.60       23607.14                                          
02/28/94     21765.74       22771.11                                          
03/31/94     21156.91       22126.61                                          
04/30/94     21765.74       23042.85                                          

Let's say you invested $10,000 in Fidelity Europe Fund on its start date        
and paid the 3% sales charge. By April 30, 1994, it would have grown to         
$21,766 - a 117.66% increase on your initial investment. That compares to       
$10,000 invested in the Morgan Stanley Europe index, which would have grown     
to $23,043 over the same period - a 130.43% increase.                           

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.                                  
(checkmark)                                                                     
EUROPE                                                                          
FUND TALK: THE MANAGER'S OVERVIEW                                               

Interview with Sally Walden,                                                    
Portfolio Manager of Fidelity Europe Fund                                       
Q. SALLY, HOW HAS THE FUND PERFORMED?                                           
A. During the past six months, the fund's performance was in line with          
other European funds. For the six months ended April 30, 1994, the fund's       
total return was 9.09%, compared to the average European fund which             
returned 9.07%, according to Lipper Analytical Services. For the same           
period the Morgan Stanley Europe index returned 7.90%. During the 12 months     
ended April 30, the fund returned 20.90%, compared to 23.06% for the            
average fund and 21.81% for the index.                                          
Q. THE EUROPEAN STOCK MARKETS GENERALLY OUTPACED THE U.S. MARKET DURING THE     
PERIOD. WHAT TRIGGERED THE MARKETS' AND THE FUND'S GAINS?                       
A. While you can't tell just by looking at the numbers, most of those gains     
came in late 1993 and January 1994 and were driven by falling European and      
U.S. interest rates. But when U.S. interest rates began to rise in              
February, European stock markets suffered a setback, as did most other          
world markets. At that point, investors started to reassess whether the         
relatively high prices for European stocks continued to make sense. After       
Europe's strong showing in 1993, it really wasn't that surprising that          
investors used higher interest rates as a reason to take a breather.            
Q. DID YOU HAVE AN ALLOCATION TARGET FOR SPECIFIC COUNTRIES OR INDUSTRIES?      
A. No, I focus on picking stocks, not picking the right industries or           
countries to be in. I try to build the fund "brick by brick," investing in      
companies with very low debt, strong management and good growth prospects.      
During the period, cyclicals, which tend to rise when the economy is            
improving, led the European markets and posted strong gains. While it may       
have helped the fund's performance in the short-term to load up on cyclical     
companies, one of my investment themes is to emphasize stocks that do well      
because they're growing, not because they'll do well in a given economic        
cycle. I focused instead on companies that I'm happy to own for quite a         
long time. One example is the fund's largest investment - Nokia, the            
Finnish cellular company, which was one of the fund's best performers           
during the period. Another telecommunications company, Italy's SIP Spa,         
also did well during the period. What's more, I believe it's likely that        
the company will spin off its cellular activities later this year, which I      
think could send the stock even higher.                                         
Q. SIX MONTHS AGO YOU SAID YOU WOULD CONTINUE EMPHASIZING PHARMACEUTICAL        
STOCKS. HOW DID THAT STRATEGY WORK OUT?                                         
A. The fund's pharmaceuticals and drug stocks posted mixed results during       
the past six months. The German company Schering did well, boosted by           
higher-than expected sales of Betaseron (its drug for treating multiple         
sclerosis), its aggressive cost-cutting program and its increasingly strong     
sales in the United States, Southeast Asia and Latin America. The Swiss         
drug company, Ares Serono, on the other hand, suffered from concerns            
surrounding health care reform in Italy. But I'm still optimistic about the     
company because its earnings growth is driven primarily by its fertility        
treatment business. The company has 70% of the global market share of that      
business, and has recently introduced a purer,  more effective version of       
its treatment.                                                                  
Q. THE FUND HAS SIGNIFICANT INVESTMENTS IN TELEVISION AND OTHER MEDIA           
STOCKS. WHAT'S THE ATTRACTION?                                                  
A. Media stocks generally are a fast-growing sector and continent-wide          
deregulation of the industry continues to provide investors with plenty of      
opportunities. Remember, commercial television didn't really exist in many      
European countries five years ago and the industry is still in its early        
stages in many countries. Advertising revenues for many media companies         
have continued to climb, despite Europe's recession, and many of the fund's     
investments enjoyed increased revenues. Going forward, I think companies        
like  Audiofina in Belgium and TF-1 in France could benefit as the economy      
improves and advertising revenues improve. Scottish Television was one of       
the fund's investments in this sector that didn't work out as well as I'd       
hoped. In 1993, a speculative furor surrounded U.K. television stocks, and      
when that bubble burst, companies like Scottish Television got caught in        
the down draft. But I'm optimistic about the company because I think its        
earnings will be surprisingly good in 1995.                                     
Q. FINANCIAL STOCKS WERE AMONG THE FUND'S TOP PERFORMERS IN 1993. HOW HAVE      
THEY FARED RECENTLY?                                                            
A. They haven't done nearly as well and many investors seem to believe that     
interest rates have stalled, and aren't likely to fall  from current            
levels. There's also the fear that rates may rise from here, so many            
investors abandoned financial companies altogether. But in my view, it's        
like throwing the baby out with the bath water. Financial stocks are quite      
cheap right now, and an economic recovery could improve their prospects as      
demand for new loans increases and the quality of loans improves. For these     
reasons, I still like the French financial company BNP, although it hasn't      
performed that well recently. France privatized a number of financial           
companies recently, and so there was a flood of new stock available in this     
sector, which somewhat artificially depressed prices. However, I think it's     
just a temporary technical glitch in the market, and over the long term the     
company's prospects are good. Holland's International Nederlanden Groep, a      
bank card insurance group, is also attractive. The demand for insurance         
continues to grow and premiums are rising. Also, the company is extremely       
well-managed, with significant operations in Japan and Eastern Europe, as       
well as Western Europe.                                                         
Q. YOU HAVE A FAIRLY LARGE NUMBER OF INVESTMENTS IN THE FUND. WOULDN'T IT       
BE SIMPLER TO HAVE FEWER STOCKS?                                                
A. Maybe, but I think it's important to diversify the fund over a wide          
range of companies in a broad list of industries. I think that helps make       
the fund's returns less volatile. I also believe that in Europe there are       
an enormous number of interesting ideas, and I like to have a piece of as       
many I can manage.                                                              
Q. THERE'S BEEN A LOT OF TALK LATELY ABOUT DERIVATIVES. DOES THE FUND USE       
THEM?                                                                           
A. The fund has the authority to use derivatives to help manage its             
investments more efficiently. Like many international funds, I occasionally     
use currency hedging to protect the fund from currency volatility. That's       
probably the only derivative strategy I've used.                                
Q. WHAT'S AHEAD FOR THE FUND?                                                   
A. I'm more optimistic about European economies than I was six months ago,      
since I believe we're starting to see tangible signs that things are            
finally beginning to improve. Last year the European stock markets rose         
mostly because of falling interest rates. During 1994 improved company          
earnings will most likely be the market's key driving force. So I'll            
continue to focus on good companies that have managed to survive and thrive     
during the economic downturn. In my opinion, these companies are best           
positioned to make the most of the upturn when it comes.                        

FUND FACTS                                                                      
GOAL: to increase the value of the fund's                                       
shares by investing mainly in common stocks                                     
in Western Europe                                                               
START DATE: October 1, 1986                                                     
SIZE: as of April 30, 1994, more than $484 million                              
MANAGER: Sally Walden, since July 1992; also                                    
manages various funds for non-U.S. investors,                                   
joined Fidelity in 1984                                                         
(checkmark)                                                                     
SALLY WALDEN'S OUTLOOK FOR EUROPEAN ECONOMIES:                                  
"While I had assumed that some sort of recovery would                           
take place in 1994, I was somewhat surprised that                               
things started to look better so soon. Generally,                               
European economies are improving although the pace                              
of the recovery varies from country to country. The                             
United Kingdom is more in line with the United States,                          
and the recovery there has been underway for about                              
18 months. In Germany, there's quite a lot of evidence                          
that suggests things are beginning to turn around.                              
German exporters are seeing high demand for their                               
products, despite the fairly strong currency. And in                            
France, industrial companies are reporting fairly strong                        
upticks in export orders as well, although not as                               
strong as in Germany. The Nordic region, too, has                               
seen some positive signs, largely due to the                                    
devaluation of its currencies a year and a half ago                             
and a resulting export boom. There are now strong                               
signs that this recovery is feeding through to the                              
domestic economy.                                                               
"Even though most European companies don't report                               
quarterly earnings, the few that have are showing                               
promising results. To me, that indicates that things                            
really are improving faster than most investors initially                       
believed. "                                                                     
(bullet)  The fund's largest investment is Finnish cellular                     
company Nokia. The company is one of the world's                                
largest cellular companies, with major businesses in                            
Europe, Southeast Asia and the United States.                                   
(bullet)  Those European countries with the greatest                            
percentage of the fund's total investments at the end of                        
April were the United Kingdom, 24.8%, compared to                               
27.1% six months ago; Germany, 11.5%, compared to                               
11.0%; France, 11.3%, compared to 14.4%; and                                    
Switzerland, 9.7%, compared to 8.8%.                                            
EUROPE                                                                          
INVESTMENT CHANGES                                                              

GEOGRAPHIC DIVERSIFICATION                                                      
AS OF APRIL 30, 1994                                                            

United States 3.6%                                                              
Belgium 6.1%                                                                    
Row: 1, Col: 1, Value: 6.1                                                      
Row: 1, Col: 2, Value: 6.6                                                      
Row: 1, Col: 3, Value: 11.3                                                     
Row: 1, Col: 4, Value: 11.5                                                     
Row: 1, Col: 5, Value: 9.9                                                      
Row: 1, Col: 6, Value: 5.1                                                      
Row: 1, Col: 7, Value: 4.6                                                      
Row: 1, Col: 8, Value: 6.6                                                      
Row: 1, Col: 9, Value: 6.2                                                      
Row: 1, Col: 10, Value: 9.699999999999999                                       
Row: 1, Col: 11, Value: 24.8                                                    
Row: 1, Col: 12, Value: 3.6                                                     
Finland 6.6%                                                                    
United                                                                          
Kingdom 24.8%                                                                   
France 11.3%                                                                    
Germany 11.5%                                                                   
Switzerland 9.7%                                                                
Sweden 6.2%                                                                     
Italy 3.9%                                                                      
Spain 6.6%                                                                      
Netherlands 5.1%                                                                
Other 4.6%                                                                      
AS OF OCTOBER 31, 1993                                                          
United States 2.9%                                                              
Belgium 4.8%                                                                    
Row: 1, Col: 1, Value: 4.8                                                      
Row: 1, Col: 2, Value: 4.9                                                      
Row: 1, Col: 3, Value: 14.4                                                     
Row: 1, Col: 4, Value: 11.0                                                     
Row: 1, Col: 5, Value: 2.3                                                      
Row: 1, Col: 6, Value: 3.2                                                      
Row: 1, Col: 7, Value: 6.8                                                      
Row: 1, Col: 8, Value: 2.8                                                      
Row: 1, Col: 9, Value: 6.8                                                      
Row: 1, Col: 10, Value: 4.2                                                     
Row: 1, Col: 11, Value: 8.800000000000001                                       
Row: 1, Col: 12, Value: 27.1                                                    
Row: 1, Col: 13, Value: 2.9                                                     
Finland 4.9%                                                                    
United                                                                          
Kingdom 27.1%                                                                   
France 14.4%                                                                    
Germany 11.0%                                                                   
Switzerland 8.8%                                                                
Ireland 2.3%                                                                    
Sweden 4.2%                                                                     
Italy 3.2%                                                                      
Spain 6.8%                                                                      
Netherlands 6.8%                                                                
Other 2.8%                                                                      
ASSET ALLOCATION                                                                
% OF FUND'S   % OF FUND'S     
INVESTMENTS   INVESTMENTS     
          6 MONTHS AGO

Stocks                   97.3          97.6                                     

Bonds                    0.1           0.4                                      

Short-term investments   2.6           2.0                                      

TOP TEN STOCKS                                                                  

                                                        · Enlarge/Download Table

                                                                                                  
                                                                         % OF FUND'S  % OF FUND'S 
                                                                         INVESTMENTS  INVESTMENTS 
                                                                                      6 MONTHS AGO

Nokia AB Free shares                                                                              
(Finland, Communications Equipment)                                      2.9          2.3         

Schering                                                                                          
(Germany, Drugs and                                                                               
Pharmaceuticals)                                                         2.2          2.6         

SIP Spa                                                                                           
(Italy, Telephone Services)                                              2.2          1.3         

Audiofina                                                                                         
(Belgium, Broadcasting)                                                  1.8          1.3         

Reisebuero Kuoni AG Part. Cert.                                                                   
(Switzerland, Entertainment)                                             1.6          1.3         

Gehe AG                                                                                           
(Germany, Medical Supplies and Equipment)                                                         
                                                                         1.2          1.2         

BBC Brown Boveri & Cie (Bearer) (Switzerland, Electrical Equipment)                           
                                                                         1.2          1.1         

VNU Ord.                                                                                          
(Netherlands, Publishing)                                                1.1          1.2         

Oerlikon-Buhrle Holding Ltd. (Reg.)                                                               
(Switzerland, Aerospace & Defense)                                   1.1          -           

ICB Shipping Class B                                                                              
(Sweden, Shipping)                                                       1.1          -           


TOP TEN INDUSTRIES                                                              
                        % OF FUND'S    % OF FUND'S
                        INVESTMENTS    INVESTMENTS
                                        6 MONTHS AGO

Finance                                16.3           21.4                      

Media & Leisure                    14.6           13.8                      

Health                                 9.4