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As Of Filer Filing For·On·As Docs:Size 6/28/01 Fidelity Investment Trust N-30D 4/30/01 1:2.5M |
Document/Exhibit Description Pages Size 1: N-30D Annual or Semi-Annual Report Mailed to HTML 1.67M Shareholders
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Fidelity's
Funds®
Fidelity® Canada Fund
Fidelity China Region Fund
Fidelity Emerging Markets Fund
Fidelity Europe Fund
Fidelity Europe Capital Appreciation Fund
Fidelity Japan Fund
Fidelity Japan Smaller Companies Fund
Fidelity Latin America Fund
Fidelity Nordic Fund
Fidelity Pacific Basin Fund
Fidelity Southeast Asia Fund
Semiannual Report
(2_fidelity_logos)(registered trademark)
Market Recap |
A review of what happened in world markets |
|
Canada Fund |
Performance |
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Fund Talk: The Manager's Overview |
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Investment Changes |
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Investments |
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Financial Statements |
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China Region Fund |
Performance |
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Fund Talk: The Manager's Overview |
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Investment Changes |
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Investments |
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Financial Statements |
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Emerging Markets Fund |
Performance |
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Fund Talk: The Manager's Overview |
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Investment Changes |
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Investments |
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Financial Statements |
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Europe Fund |
Performance |
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Fund Talk: The Manager's Overview |
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Investment Changes |
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Investments |
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Financial Statements |
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Europe Capital Appreciation Fund |
Performance |
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Fund Talk: The Manager's Overview |
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Investment Changes |
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Investments |
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Financial Statements |
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Japan Fund |
Performance |
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Fund Talk: The Manager's Overview |
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Investment Changes |
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Investments |
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Financial Statements |
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Japan Smaller Companies Fund |
Performance |
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Fund Talk: The Manager's Overview |
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Investment Changes |
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Investments |
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Financial Statements |
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Latin America Fund |
Performance |
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Fund Talk: The Manager's Overview |
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Investment Changes |
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Investments |
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Financial Statements |
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Nordic Fund |
Performance |
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Fund Talk: The Manager's Overview |
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Investment Changes |
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Investments |
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Financial Statements |
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Pacific Basin Fund |
Performance |
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Fund Talk: The Manager's Overview |
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Investment Changes |
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Investments |
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Financial Statements |
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Southeast Asia Fund |
Performance |
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Fund Talk: The Manager's Overview |
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Investment Changes |
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Investments |
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Financial Statements |
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Notes to Financial Statements |
Notes to the Financial Statements |
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Proxy Voting Results |
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Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by
Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
Semiannual Report
(automated graphic) This report is printed on recycled paper using soy-based inks.
The views expressed in this report reflect those of each fund's portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.
Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.
Neither the funds nor Fidelity Distributors Corporation is a bank. For more information on any Fidelity fund, including charges and expenses, call 1-800-544-6666 for a free prospectus. Read it carefully before you invest or send money.
Semiannual Report
Supplement to Fidelity's Targeted International Equity Funds®
December 29, 2000
Revised April 1, 2001
Prospectus
The following information replaces similar information found in the "Fee Table" section on page 13.
Shareholder fees (paid by the investor directly)
Maximum sales charge (load) on purchases (as a % of offering price) |
3.00%A |
Sales charge (load) on reinvested distributions |
None |
Deferred sales charge (load) on redemptions |
None |
Redemption fee on shares held less than 90 days (as a % of amount redeemed) |
1.50% |
Redemption fee on shares held less than 30 days (as a % of amount redeemed) |
1.00% |
Annual account maintenance fee (for accounts under $2,000) |
$12.00 |
A Lower sales charges may be available for accounts over $250,000.
The following information replaces similar information found in the "Account Features and Policies" section beginning on page 27.
Fidelity may deduct a small balance maintenance fee of $12.00 from a fund balance with a value of less than $2,000. It is expected that fund balances will be valued on the second Friday in November of each calendar year. Fund positions opened after September 30 will not be subject to the fee for that calendar year. The fee, which is payable to Fidelity, is designed to offset in part the relatively higher costs of servicing smaller fund positions. This fee will not be deducted from fund positions opened after January 1 of that calendar year if those positions use regular investment plans.
You will be given 30 days' notice to reestablish the minimum balance if your fund balance falls below $2,000 ($500 for fund balances in retirement accounts), except fund positions not subject to balance minimums. If you do not increase your balance, Fidelity may sell all of your shares and send the proceeds to you. Your shares will be sold at the NAV, minus the short-term trading fee, if applicable, on the day Fidelity closes your fund position.
Effective June 30, 2001, the following information replaces the biographical information found in the "Fund Management" section on page 31.
Margaret Reynolds is portfolio manager of Latin America Fund, which she has managed since June 2001. She also manages other Fidelity funds. Since joining Fidelity in 1995, Ms. Reynolds has worked as a research analyst and manager.
The following information replaces the biographical information found in the "Fund Management" section on page 31.
John Carlson is vice president and manager of Emerging Markets Fund, which he has managed since May 2001. He also manages other Fidelity funds. Since joining Fidelity in 1995, Mr. Carlson has worked as a research analyst and manager.
TIF-01-05 May 30, 2001
1.483702.124
Shaky equity markets dotted the globe during the six-month period that ended April 30, 2001, as numerous corporate earnings misses and tighter capital led to an implosion of high-growth technology and telecommunications stocks. The broad scale of this scenario conjured fears about the possibility of a global recession. In response, equity investors sought shelter in bonds and value stocks, and a number of central banks around the world intervened with interest-rate cuts designed to inject much-needed liquidity into the stock markets. By the end of the period, these actions seemed to ease the dry spell for stocks, as investors warily but steadily poured money back into equities.
Europe: Europe was exposed to many of the same negative trends that hammered equities worldwide. The decline of TMT stocks - those in the technology, media and telecommunications sectors - was the overwhelming influence on the continent's equity market performance. But while Europe was especially weak early in the period, it snapped back later after several interest-rate cuts by central banks around the world, although the European Central Bank was a notable exception. A strengthening euro and a growth outlook expected to surpass that of the U.S. also contributed to the rebound. Compared to many stock markets, the Morgan Stanley Capital InternationalSM (MSCI®) Europe Index's six-month return of -7.04% was relatively strong.
Emerging Markets: The MSCI All Country Asia Free ex-Japan Index - a benchmark of more than 300 stocks in 12 emerging Asian markets, excluding Japan - fell 8.33% during the six-month period. Many of these countries, such as Taiwan, Korea and Singapore - significant exporters of electronics and semiconductors - were hurt by poor sales as U.S. technology spending slowed for most of the period. Meanwhile, the MSCI Emerging Markets Free-Latin America index, a proxy for stock markets in Latin American nations, just barely dipped into negative territory, declining 0.88%. Mexico, the largest country in the index, performed well, benefiting from high energy prices and a strong currency. But that was offset somewhat by Brazil, the index's second-largest country weighting, which raised interest rates twice while nearly everyone else in the world was lowering them.
Japan and the Far East: A slowing economy, a banking sector plagued by bad debt and weak demand from one of its largest trading partners - the United States - posed a world of trouble for investors in Japanese equities. The Tokyo Stock Exchange Index - a gauge of the Japanese market better known as TOPIX - was down 12.16% for the six-month period. But in April, the election of a new prime minister with a commitment to economic and political reform offered a glimmer of hope, and the TOPIX responded with an 8.59% increase in the final month of the period.
U.S. and Canada: U.S. stocks displayed remarkable volatility during the six months that ended April 30, 2001. Of the 123 trading sessions during the period, the Dow Jones Industrial AverageSM - a popular measure of blue-chip stock performance - closed up or down by more than 100 points on 51 occasions. After all the daily fluctuations, the Dow finished the period down 1.37%. The technology-intensive NASDAQ Composite® Index, however, was a different story, tumbling 37.12% during the six-month stretch. The much-maligned technology sector - which suffered from overcapacity and lower demand - jumped sharply in January and April, but couldn't offset the other four months' worth of declines. Meanwhile, the Standard & Poor's 500SM Index, a barometer of large-cap stock performance, retreated 12.07%. Value and stable-growth stocks generally did better than riskier alternatives. The Russell 3000® Value Index ended the period in positive territory, finishing with a return of 0.78%. The Federal Reserve Board tried its best to stimulate economic growth - cutting short-term interest rates by two full percentage points - but the impact is still to be determined. The Canadian equity market - as measured by the Toronto Stock Exchange (TSE) 300 - also struggled. The decline of TMT stocks was a primary contributor to the TSE 300's 17.49% drop during the period.
Bonds: U.S. bonds offered a haven for those who sought to escape volatile stock markets. The Lehman Brothers Aggregate Bond Index - a
measure of U.S. taxable-bond performance - returned 6.22% during the past six months. Treasuries led early, benefiting from the federal
government's debt buyback program, but relinquished market leadership to the spread sectors, particularly corporate bonds, which rebounded in 2001 on the
heels of the Fed's four 0.50% interest-rate cuts. For the period, the Lehman Brothers Treasury Index returned 5.13%, and the Lehman Brothers Credit Bond
Index gained 7.29%. Meanwhile, the Lehman Brothers U.S. Agency and Mortgage-Backed Securities Indexes advanced 6.47% and 6.10%, respectively.
Elsewhere, developed-nation government bonds didn't fare as well as emerging-markets debt. The Salomon Smith Barney Non-U.S. World Government
Bond Index gained an even 1.00%, while the J.P. Morgan Emerging Markets Bond Index returned 5.19% for the past six months.
Semiannual Report
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. Total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value). If Fidelity had not reimbursed certain fund expenses, the past 10 year total return would have been lower.
Cumulative Total Returns
Periods ended |
Past 6 |
Past 1 |
Past 5 |
Past 10 |
Fidelity Canada |
-9.03% |
-4.71% |
43.06% |
98.37% |
Fidelity Canada |
-11.76% |
-7.57% |
38.76% |
92.42% |
Toronto Stock |
-17.49% |
-17.01% |
48.02% |
113.41% |
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 10 years. For example, if you had invested $1,000 in a fund that had a 5% return over the past year, the value of your investment would be $1,050. You can compare the fund's returns to the performance of the Toronto Stock Exchange 300 Index - a market capitalization-weighted index of 300 stocks traded in the Canadian market.
Average Annual Total Returns
Periods ended |
Past 1 |
Past 5 |
Past 10 |
Fidelity Canada |
-4.71% |
7.42% |
7.09% |
Fidelity Canada |
-7.57% |
6.77% |
6.76% |
Toronto Stock Exchange 300 |
-17.01% |
8.16% |
7.88% |
Average annual total returns take the fund's cumulative return and show you what would have happened if the fund had performed at a constant rate each year.
$10,000 Over 10 Years
$10,000 Over 10 Years: Let's say hypothetically that $10,000 was invested in Fidelity® Canada Fund on April 30, 1991, and the current 3.00% sales charge was paid. As the chart shows, by April 30, 2001, the value of the investment would have grown to $19,242 - a 92.42% increase on the initial investment. For comparison, look at how the Toronto Stock Exchange 300 Index did over the same period. With dividends and capital gains, if any, reinvested, the same $10,000 would have grown to $21,341 - a 113.41% 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. Past performance is no guarantee of future results and you may have a gain or loss when you sell your shares.
3Semiannual Report
Canada
(Portfolio Manager photograph)
An interview with
Stephen Binder, Portfolio Manager of Fidelity Canada Fund
Q. How did the fund perform, Stephen?
A. For the six months that ended April 30, 2001, the fund returned -9.03%, topping the Toronto Stock Exchange (TSE) 300, which returned -17.49% during the same period. For the 12 months that ended April 30, 2001, the fund was down 4.71%, while the TSE index fell 17.01%.
Q. What set the tone for equity market performance in Canada during the past six months?
A. Mounting evidence of a sharp decline in U.S. and global economic growth hampered the technology-laden Toronto market during the period. Investment spending - a key component of economic growth - within the telecommunications sector collapsed with the emergence of excess capacity and a shrinking supply of available funding. Telecom equipment makers, such as Nortel Networks - the leading supplier of optical networking gear in North America - felt the brunt of the storm as orders dried up from cash-strapped customers. Multiple earnings warnings from Nortel during the period set the tone for a significant downturn in tech-related stocks and the subsequent flight by weary investors seeking reasonable valuations and safety in less volatile areas of the market, particularly the natural resources sector. The resulting broadening of the market allowed nine out of 14 sectors to post positive six-month returns. The energy sector was a big winner, thanks to higher-than-average oil and gas prices. Metals and minerals also performed well, as did the conglomerates and transportation sectors.
Q. Why did the fund outperform the TSE 300 index by such a wide margin during this time frame?
A. Favorable sector positioning and good stock picking ensured our success relative to the index. Underweighting technology - the largest component of the index - helped the most, as it sheltered us a bit from the tech wreck that caused the sector to fall nearly 50% during the six-month period. Maintaining a sizable underweighting in Nortel - which accounted for just under 17% of the index on average - was key, as the stock tumbled more than 66%. Given Nortel's heavy dependence on telecom spending, I felt it would have a longer recovery than the average tech stock in North America. That said, I still was surprised at how sharply Nortel's fundamentals deteriorated and, in hindsight, I should have pared back even further on the position. Still, our relative advantage from underweighting Nortel was more than enough to compensate for what we lost by overweighting Nortel's suppliers, namely electronics manufacturers C-Mac and Celestica, which suffered a similar fate as the equipment giant before rebounding sharply late in the period. Having nearly twice the weighting as the index in oil and gas stocks was another strategy that paid off, as higher energy prices, growing margins and further consolidation activity bolstered the sector. Increased spending on developing new sources of crude oil and natural gas boosted fund holdings in energy services and exploration and production companies. Top contributors included Suncor, Ensign and CHC Helicopter, which provides flight services to the offshore oil/gas industry.
Q. What else worked out well for the fund?
A. The fund's positioning in electric utilities aided performance, as we gained exposure to the emerging power shortages plaguing the western U.S. primarily by overweighting ATCO - a holding company for an electric utility in Alberta. We also played the power theme through aluminum companies, such as Alcoa, which benefited from idling production in certain regions and selling its high-priced power back to the grid operators. Moreover, shrinking supplies have spawned a favorable outlook for aluminum prices.
Q. What moves restrained performance?
A. Not owning enough economically sensitive cyclical stocks detracted from returns, as the market began to discount a recovery in the economy. Specifically, our deficiency in paper and forest products and metals and minerals relative to the index hurt. Underweighting gold stocks, namely Placer Dome and Barrick Gold, further restrained performance. The fund no longer held Placer Dome at the end of the period.
Q. What's your outlook?
A. I'm still cautious about the telecom equipment sector for the reasons that I stated earlier. Generally, lower interest rates lead to an improving economy. Therefore, I intend to focus my efforts in the coming months on finding attractively valued cyclical stocks that should perform well in this environment.
Note to shareholders: Fidelity Canada Fund may invest up to 35% of its total assets in any industry that represents more than 20% of the Canadian market. As of April 30, 2001, the fund did not have more than 25% of its total assets invested in any one industry.
The views expressed in this report reflect those of the portfolio manager only through the end of the period of the report as stated on the cover. The manager's views are subject to change at any time based on market or other conditions. For more information, see page 3.
Fund Facts
Goal: growth of capital over the long term
Fund number: 309
Trading symbol: FICDX
Start date: November 17, 1987
Size: as of April 30, 2001, more than
$106 million
Manager: Stephen Binder, since 1999; associate portfolio manager, Fidelity Canada Fund, 1998-1999; manager, several Fidelity Select Portfolios, 1990-1997; research analyst, 1989-1999; joined Fidelity in 1989
3Semiannual Report
Canada
Geographic Diversification (% of fund's net assets) |
|||
As of April 30, 2001 |
|||
Canada |
93.7% |
|
|
United States of America |
6.3% |
|
As of October 31, 2000 |
|||
Canada |
94.7% |
|
|
United States of America |
5.3% |
|
Percentages are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation |
||
|
% of fund's |
% of fund's net assets |
Stocks |
98.6 |
98.0 |
Short-Term Investments |
1.4 |
2.0 |
Top Ten Stocks as of April 30, 2001 |
||
|
% of fund's |
% of fund's net assets |
Suncor Energy, Inc. (Oil & Gas) |
5.1 |
2.1 |
Bombardier, Inc. Class B (sub. vtg.) (Aerospace & Defense) |
4.1 |
3.0 |
Ensign Resource Service Group, Inc. (Energy Equipment & Services) |
3.8 |
1.8 |
C Mac Industries, Inc. (Semiconductor Equipment & Products) |
3.8 |
5.0 |
Royal Bank of Canada (Banks) |
3.6 |
4.6 |
Canadian Imperial Bank of Commerce (Banks) |
3.4 |
2.5 |
Toronto Dominion Bank (Banks) |
3.2 |
3.2 |
Canadian National Railway Co. (Road & Rail) |
3.0 |
1.5 |
Canadian Pacific Ltd. |
2.9 |
3.0 |
Alcoa, Inc. (Metals & Mining) |
2.8 |
1.2 |
|
35.7 |
|
Market Sectors as of April 30, 2001 |
||
|
% of fund's |
% of fund's net assets |
Financials |
26.4 |
22.6 |
Energy |
24.0 |
13.8 |
Industrials |
11.1 |
10.6 |
Information Technology |
10.9 |
25.3 |
Materials |
8.1 |
8.0 |
Telecommunication Services |
4.4 |
5.6 |
Utilities |
4.4 |
1.6 |
Consumer Discretionary |
4.2 |
5.8 |
Consumer Staples |
3.1 |
3.5 |
Health Care |
2.0 |
1.2 |
Effective with this report, industry classifications follow the MSCI/S&P Global Industry Classification Standard. This replaces the U.S. Standard Industrial Classification system that is being phased out. Prior period industry percentages reflect the new standard. |
Semiannual Report
Canada
(Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.6% |
|||
Shares |
Value (Note 1) |
||
CONSUMER DISCRETIONARY - 4.2% |
|||
Distributors - 0.3% |
|||
Richelieu Hardware Ltd. (a) |
30,800 |
$ 335,719 |
|
Hotels Restaurants & Leisure - 0.5% |
|||
Four Seasons Hotels, Inc. |
9,500 |
551,689 |
|
Media - 1.8% |
|||
Astral Media, Inc. Class A (non-vtg.) (a) |
29,700 |
850,394 |
|
Corus Entertainment, Inc. Class B (non-vtg.) (a) |
15,000 |
341,641 |
|
Thomson Corp. |
21,600 |
723,889 |
|
|
1,915,924 |
||
Specialty Retail - 0.8% |
|||
Future Shop Ltd. (a) |
73,500 |
483,081 |
|
Office Depot, Inc. (a) |
34,300 |
325,850 |
|
|
808,931 |
||
Textiles & Apparel - 0.8% |
|||
Gildan Activewear, Inc. Class A (a) |
55,000 |
913,000 |
|
TOTAL CONSUMER DISCRETIONARY |
4,525,263 |
||
CONSUMER STAPLES - 3.1% |
|||
Food & Drug Retailing - 3.1% |
|||
George Weston Ltd. |
29,000 |
1,698,445 |
|
Loblaw Companies Ltd. |
45,000 |
1,552,027 |
|
|
3,250,472 |
||
ENERGY - 24.0% |
|||
Energy Equipment & Services - 7.5% |
|||
Bonus Resource Services Corp. (a) |
75,000 |
226,947 |
|
CHC Helicopter Corp. Class A |
104,000 |
1,204,659 |
|
Ensign Resource Service Group, Inc. |
119,000 |
4,073,274 |
|
Precision Drilling Corp. (a) |
32,000 |
1,347,719 |
|
Tidewater, Inc. |
11,000 |
515,570 |
|
Total Energy Services Ltd. (a) |
150,000 |
229,388 |
|
Trican Well Service Ltd. (a) |
39,400 |
456,381 |
|
|
8,053,938 |
||
Oil & Gas - 16.5% |
|||
Alberta Energy Co. Ltd. |
20,000 |
983,276 |
|
Anderson Exploration Ltd. (a) |
16,000 |
364,417 |
|
Baytex Energy Ltd. (a) |
51,000 |
431,444 |
|
Bonavista Petroleum Ltd. (a) |
27,000 |
593,870 |
|
Canadian Hunter Exploration Ltd. (a) |
60,000 |
1,737,488 |
|
Canadian Natural Resources Ltd. |
50,000 |
1,557,233 |
|
Gulf Canada Resources Ltd. (a) |
167,018 |
956,438 |
|
Ketch Energy Ltd. (a) |
49,000 |
248,396 |
|
Nexen, Inc. |
40,000 |
940,977 |
|
PanCanadian Petroleum Ltd. |
17,000 |
519,945 |
|
Petro-Canada |
30,000 |
829,700 |
|
Player Petroleum Corp. (a) |
23,000 |
236,481 |
|
|
|||
Shares |
Value (Note 1) |
||
Rio Alto Exploration Ltd. (a) |
24,000 |
$ 481,031 |
|
Suncor Energy, Inc. |
195,000 |
5,462,843 |
|
Talisman Energy, Inc. (a) |
44,000 |
1,792,412 |
|
Valero Energy Corp. |
5,500 |
264,880 |
|
Velvet Exploration Ltd. (a) |
55,000 |
218,325 |
|
|
17,619,156 |
||
TOTAL ENERGY |
25,673,094 |
||
FINANCIALS - 26.4% |
|||
Banks - 16.8% |
|||
Bank of Montreal |
89,000 |
2,038,654 |
|
Bank of Nova Scotia |
111,000 |
2,748,454 |
|
Canadian Imperial Bank of Commerce |
113,000 |
3,665,680 |
|
Home Capital Group Class B (sub. vtg.) |
130,000 |
634,476 |
|
Laurentian Bank of Canada |
41,700 |
743,528 |
|
National Bank of Canada |
52,000 |
895,035 |
|
Royal Bank of Canada |
137,000 |
3,829,082 |
|
Toronto Dominion Bank |
135,000 |
3,417,388 |
|
|
17,972,297 |
||
Diversified Financials - 2.1% |
|||
AGF Management Ltd. Class B (non-vtg.) |
97,000 |
1,546,496 |
|
Brascan Corp. Class A (ltd. vtg.) |
17,000 |
274,907 |
|
C.I. Fund Management, Inc. (a) |
41,000 |
380,198 |
|
|
2,201,601 |
||
Insurance - 5.8% |
|||
Industrial Alliance Life Insurance Co. (a) |
79,000 |
1,835,296 |
|
Kingsway Financial Services, Inc. (a) |
95,000 |
692,393 |
|
Manulife Financial Corp. |
62,000 |
1,562,205 |
|
Sun Life Financial Services Canada, Inc. |
109,000 |
2,127,936 |
|
|
6,217,830 |
||
Real Estate - 1.7% |
|||
Brookfield Properties Corp. |
57,500 |
984,463 |
|
Trizec Hahn Corp. (sub. vtg.) |
51,000 |
796,512 |
|
|
1,780,975 |
||
TOTAL FINANCIALS |
28,172,703 |
||
HEALTH CARE - 2.0% |
|||
Pharmaceuticals - 2.0% |
|||
Angiotech Pharmaceuticals, Inc. (a) |
9,000 |
393,571 |
|
Biovail Corp. (a) |
45,000 |
1,771,654 |
|
|
2,165,225 |
||
INDUSTRIALS - 11.1% |
|||
Aerospace & Defense - 4.4% |
|||
Bombardier, Inc. Class B (sub. vtg.) |
304,000 |
4,381,857 |
|
CAE, Inc. |
18,000 |
294,592 |
|
|
4,676,449 |
||
Building Products - 0.2% |
|||
Premdor, Inc. (a) |
41,000 |
266,805 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
INDUSTRIALS - continued |
|||
Electrical Equipment - 0.6% |
|||
Ballard Power Systems, Inc. (a) |
12,000 |
$ 638,928 |
|
Road & Rail - 5.9% |
|||
Canadian National Railway Co. |
81,000 |
3,215,332 |
|
Canadian Pacific Ltd. |
79,000 |
3,089,673 |
|
|
6,305,005 |
||
TOTAL INDUSTRIALS |
11,887,187 |
||
INFORMATION TECHNOLOGY - 10.9% |
|||
Communications Equipment - 3.8% |
|||
CIENA Corp. (a) |
21,000 |
1,156,260 |
|
Nortel Networks Corp. |
156,017 |
2,387,060 |
|
Research in Motion Ltd. (a) |
13,000 |
444,134 |
|
|
3,987,454 |
||
Computers & Peripherals - 1.3% |
|||
Onex Corp. |
96,000 |
1,405,609 |
|
Electronic Equipment & Instruments - 1.0% |
|||
Celestica, Inc. (sub. vtg.) (a) |
14,000 |
719,724 |
|
Optimal Robotics Corp. Class A (a) |
11,000 |
360,250 |
|
|
1,079,974 |
||
IT Consulting & Services - 0.3% |
|||
CGI Group, Inc. Class A (sub. vtg.) (a) |
57,000 |
319,737 |
|
Semiconductor Equipment & Products - 3.8% |
|||
C Mac Industries, Inc. (a) |
125,000 |
4,046,821 |
|
Software - 0.7% |
|||
Open Text Corp. (a) |
30,000 |
741,849 |
|
TOTAL INFORMATION TECHNOLOGY |
11,581,444 |
||
MATERIALS - 8.1% |
|||
Chemicals - 0.9% |
|||
Methanex Corp. (a) |
77,000 |
651,396 |
|
Potash Corp. of Saskatchewan |
4,500 |
257,871 |
|
|
909,267 |
||
Construction Materials - 0.0% |
|||
Brampton Brick Ltd. Class A (a) |
9,900 |
47,351 |
|
Metals & Mining - 6.8% |
|||
Alcan, Inc. |
34,000 |
1,512,267 |
|
Alcoa, Inc. |
72,000 |
2,980,800 |
|
Barrick Gold Corp. |
69,000 |
1,129,271 |
|
Co-Steel, Inc |
48,500 |
244,599 |
|
Dofasco, Inc. |
40,000 |
653,348 |
|
IPSCO, Inc. |
9,000 |
132,076 |
|
Meridian Gold, Inc. (a) |
36,200 |
297,996 |
|
Noranda, Inc. |
30,000 |
318,214 |
|
|
7,268,571 |
||
|
|||
Shares |
Value (Note 1) |
||
Paper & Forest Products - 0.4% |
|||
Slocan Forest Products Ltd. |
52,100 |
$ 406,846 |
|
TOTAL MATERIALS |
8,632,035 |
||
TELECOMMUNICATION SERVICES - 4.4% |
|||
Diversified Telecommunication Services - 4.4% |
|||
BCE, Inc. |
87,000 |
2,173,443 |
|
GT Group Telecom, Inc. Class B (non-vtg.) (a) |
26,000 |
146,353 |
|
Manitoba Telecom Services, Inc. |
67,000 |
1,715,657 |
|
TELUS Corp. (non-vtg.) |
34,000 |
698,054 |
|
|
4,733,507 |
||
UTILITIES - 4.4% |
|||
Electric Utilities - 0.8% |
|||
Reliant Resources, Inc. |
1,000 |
30,000 |
|
TransAlta Corp. |
47,000 |
847,205 |
|
|
877,205 |
||
Gas Utilities - 1.9% |
|||
Enbridge, Inc. |
15,950 |
393,379 |
|
TransCanada Pipelines Ltd. |
91,000 |
1,078,948 |
|
Westcoast Energy, Inc. |
27,000 |
562,244 |
|
|
2,034,571 |
||
Multi-Utilities - 1.7% |
|||
ATCO Ltd. Class I (non-vtg.) |
52,500 |
1,793,616 |
|
TOTAL UTILITIES |
4,705,392 |
||
TOTAL COMMON STOCKS (Cost $89,701,595) |
105,326,322 |
||
Cash Equivalents - 5.1% |
|||
|
|
|
|
Fidelity Cash Central Fund, 4.70% (b) |
1,356,753 |
1,356,753 |
|
Fidelity Securities Lending Cash Central Fund, 4.59% (b) |
4,063,350 |
4,063,350 |
|
TOTAL CASH EQUIVALENTS (Cost $5,420,103) |
5,420,103 |
||
TOTAL INVESTMENT PORTFOLIO - 103.7% (Cost $95,121,698) |
110,746,425 |
||
NET OTHER ASSETS - (3.7)% |
(3,906,248) |
||
NET ASSETS - 100% |
$ 106,840,177 |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $61,625,285 and $102,265,620, respectively. |
The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of Fidelity Management & Research Company. The commissions paid to these affiliated firms were $356 for the period. |
Income Tax Information |
At April 30, 2001, the aggregate cost of investment securities for income |
At October 31, 2000, the fund had a capital loss carryforward of approximately $3,354,000, all of which will expire on October 31, 2006. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Canada
Statement of Assets and Liabilities
|
April 30, 2001 (Unaudited) |
|
Assets |
|
|
Investment in securities, at value (including securities loaned of $3,812,668) (cost $95,121,698) - See accompanying schedule |
|
$ 110,746,425 |
Foreign currency held at value |
|
820,720 |
Receivable for investments sold |
|
2,321,020 |
Receivable for fund shares sold |
|
87,719 |
Dividends receivable |
|
113,689 |
Interest receivable |
|
10,554 |
Redemption fees receivable |
|
116 |
Other receivables |
|
5,635 |
Total assets |
|
114,105,878 |
Liabilities |
|
|
Payable for investments purchased |
$ 2,793,357 |
|
Payable for fund shares redeemed |
284,961 |
|
Accrued management fee |
76,028 |
|
Other payables and |
48,005 |
|
Collateral on securities loaned, |
4,063,350 |
|
Total liabilities |
|
7,265,701 |
Net Assets |
|
$ 106,840,177 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 118,447,444 |
Distributions in excess of net investment income |
|
(36,828) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
(27,193,181) |
Net unrealized appreciation (depreciation) on investments |
|
15,622,742 |
Net Assets, for 5,529,193 |
|
$ 106,840,177 |
Net Asset Value and redemption price per share ($106,840,177 ÷ 5,529,193 shares) |
|
$19.32 |
Maximum offering price per share (100/97.00 of $19.32) |
|
$19.92 |
Statement of Operations
|
Six months ended April 30, 2001 (Unaudited) |
|
Investment Income Dividends |
|
$ 795,423 |
Interest |
|
49,460 |
Security lending |
|
39,992 |
|
|
884,875 |
Less foreign taxes withheld |
|
(114,639) |
Total income |
|
770,236 |
Expenses |
|
|
Management fee |
$ 477,820 |
|
Performance adjustment |
36,191 |
|
Transfer agent fees |
180,595 |
|
Accounting and security lending fees |
39,746 |
|
Non-interested trustees' compensation |
364 |
|
Custodian fees and expenses |
31,805 |
|
Registration fees |
26,879 |
|
Audit |
17,207 |
|
Legal |
389 |
|
Reports to shareholders |
5,238 |
|
Miscellaneous |
277 |
|
Total expenses before reductions |
816,511 |
|
Expense reductions |
(68,711) |
747,800 |
Net investment income |
|
22,436 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities |
(22,974,020) |
|
Foreign currency transactions |
(22,188) |
(22,996,208) |
Change in net unrealized appreciation (depreciation) on: |
|
|
Investment securities |
9,181,581 |
|
Assets and liabilities in |
2,638 |
9,184,219 |
Net gain (loss) |
|
(13,811,989) |
Net increase (decrease) in net assets resulting from operations |
|
$ (13,789,553) |
Other Information |
|
$ 23,646 |
Expense reductions |
|
|
Directed brokerage arrangements |
|
$ 65,622 |
Transfer agent credits |
|
3,089 |
|
|
$ 68,711 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Canada
Financial Statements - continued
Statement of Changes in Net Assets
Increase (Decrease) in Net Assets |
Six months ended |
Year ended
October 31, |
Operations |
$ 22,436 |
$ 8,350,545 |
Net realized gain (loss) |
(22,996,208) |
529,832 |
Change in net unrealized appreciation (depreciation) |
9,184,219 |
316,342 |
Net increase (decrease) in net assets resulting from operations |
(13,789,553) |
9,196,719 |
Distributions to shareholders from net investment income |
(7,282,311) |
(85,857) |
Share transactions |
18,909,900 |
160,756,968 |
Reinvestment of distributions |
7,097,924 |
82,250 |
Cost of shares redeemed |
(61,223,294) |
(51,055,541) |
Net increase (decrease) in net assets resulting from share transactions |
(35,215,470) |
109,783,677 |
Redemption fees |
102,284 |
360,425 |
Total increase (decrease) in net assets |
(56,185,050) |
119,254,964 |
Net Assets |
|
|
Beginning of period |
163,025,227 |
43,770,263 |
End of period (including under (over) distribution of net investment income of $(36,828) and $8,350,012, respectively) |
$ 106,840,177 |
$ 163,025,227 |
Other Information Shares |
|
|
Sold |
921,270 |
6,834,177 |
Issued in reinvestment of distributions |
331,369 |
4,754 |
Redeemed |
(3,043,161) |
(2,270,606) |
Net increase (decrease) |
(1,790,522) |
4,568,325 |
Financial Highlights
|
Six months ended |
Years ended October 31, |
||||
Selected Per-Share Data |
(Unaudited) |
2000 |
1999 |
1998 |
1997 |
1996 |
Net asset value, beginning of period |
$ 22.27 |
$ 15.91 |
$ 13.14 |
$ 18.88 |
$ 21.84 |
$ 17.55 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income D |
.00 |
1.98 F |
.04 |
.09 |
.03 |
.08 |
Net realized and unrealized gain (loss) |
(1.93) |
4.32 G |
2.78 |
(3.70) |
1.39 |
4.27 |
Total from investment operations |
(1.93) |
6.30 |
2.82 |
(3.61) |
1.42 |
4.35 |
Less Distributions |
|
|
|
|
|
|
From net investment income |
(1.04) |
(.03) |
(.07) |
(.05) |
(.13) |
(.08) |
From net realized gain |
- |
- |
- |
(2.08) |
(4.29) |
- |
Total distributions |
(1.04) |
(.03) |
(.07) |
(2.13) |
(4.42) |
(.08) |
Redemption fees added to paid in capital |
.02 |
.09 |
.02 |
- |
.04 |
.02 |
Net asset value, end of period |
$ 19.32 |
$ 22.27 |
$ 15.91 |
$ 13.14 |
$ 18.88 |
$ 21.84 |
Total Return B, C |
(9.03)% |
40.22% |
21.71% |
(21.27)% |
8.21% |
24.99% |
Ratios and Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 106,840 |
$ 163,025 |
$ 43,770 |
$ 47,422 |
$ 96,458 |
$ 129,671 |
Ratio of expenses to average net assets |
1.27% A |
1.09% |
1.22% |
.94% |
.93% |
1.01% |
Ratio of expenses to average net assets after |
1.17% A, E |
1.06% E |
1.06% E |
.80% E |
.92% E |
.98% E |
Ratio of net investment income to average net assets |
.04% A |
9.00% |
.26% |
.57% |
.18% |
.40% |
Portfolio turnover rate |
97% A |
97% |
286% |
215% |
139% |
139% |
A Annualized B The total returns would have been lower had certain expenses not been reduced during the periods shown. C Total returns do not include the one time sales charge and for periods of less than one year are not annualized. D Net investment income per share has been calculated based on average shares outstanding during the period. E FMR or the fund has entered into varying arrangements with third parties who either paid or reduced a portion of the fund's expenses. F Investment income per share reflects a special dividend which amounted to $1.97 per share. G The amount shown for a share outstanding does not correspond with the aggregate net gain on investments for the period due to the timing of sales and repurchases of fund shares in relation to fluctuating
market values of the investments |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
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. Total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value).
Cumulative Total Returns
Periods ended |
Past 6 |
Past 1 |
Past 5 |
Life of |
Fidelity China Region |
-0.93% |
-13.58% |
41.57% |
57.86% |
Fidelity China Region |
-3.91% |
-16.18% |
37.32% |
53.12% |
Hang Seng |
-9.20% |
-12.10% |
40.15% |
59.47% |
Fidelity China Region Fund Linked Index |
-7.10% |
-12.62% |
39.32% |
58.52% |
China Region |
1.08% |
-13.15% |
-5.48% |
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 November 1, 1995. For example, if you had invested $1,000 in a fund that had a 5% return over the past year, the value of your investment would be $1,050. You can compare the fund's returns to the performance of the Hang Seng Index - a market capitalization-weighted index of the stocks of the 33 largest companies in the Hong Kong market and to the performance of the Fidelity China Region Fund Linked Index - an index which links the returns of the Hang Seng Index from the commencement of the fund on November 1, 1995 through September 1, 2000, and the MSCI Golden Dragon Plus Index beginning September 1, 2000. It is designed to represent the equity markets of Hong Kong through September 1, 2000 and the equity markets of Hong Kong, Taiwan, and China beginning September 1, 2000. You can also compare the fund's performance to the China region funds average, which reflects the performance of mutual funds with similar objectives tracked by Lipper Inc. The past six months average represents a peer group of 24 mutual funds. These benchmarks include reinvested dividends and capital gains, if any, and exclude the effect of sales charges.
Average Annual Total Returns
Periods ended |
Past 1 |
Past 5 |
Life of |
Fidelity China Region |
-13.58% |
7.20% |
8.66% |
Fidelity China Region |
-16.18% |
6.55% |
8.06% |
Hang Seng |
-12.10% |
6.98% |
8.86% |
Fidelity China Region Fund |
-12.62% |
6.86% |
8.74% |
China Region Funds Average |
-13.15% |
-1.54% |
n/a * |
Average annual total returns take the fund's cumulative return and show you what would have happened if the fund had performed at a constant rate each year.
* Not available
$10,000 Over Life of Fund
$10,000 Over Life of Fund: Let's say hypothetically that $10,000 was invested in Fidelity China Region Fund on November 1, 1995, when the fund started, and the current 3.00% sales charge was paid. As the chart shows, by April 31, 2001, the value of the investment would have grown to $15,312 - a 53.12% increase on the initial investment. For comparison, look at how both the Hang Seng Index and the Fidelity China Region Fund Linked Index did over the same period. With dividends and capital gains, if any, reinvested, the same $10,000 would have grown to $15,947 - a 59.47% increase and $15,852 - a 58.52% increase, respectively.
Understanding Performance
Many markets around the globe offer the potential for significant growth over time; however, investing in foreign markets means assuming greater risks than investing in the United States. Factors like changes in a country's financial markets, its local political and economic climate, and the fluctuating value of its currency create these risks. For these reasons an international fund's performance may be more volatile than a fund that invests exclusively in the United States. Past performance is no guarantee of future results and you may have a gain or loss when you sell your shares.
3Semiannual Report
China Region
(Portfolio Manager photograph)
An interview with Joseph Tse, Portfolio Manager of Fidelity China Region Fund
Q. How did the fund perform, Joseph?
A. For the six months that ended April 30, 2001, the fund returned -0.93%, outpacing the Hang Seng Index, which returned -9.20%. The fund also compares its performance to the Fidelity China Region Fund Linked Index - a measure of the performance of the Hong Kong, Taiwanese and Chinese markets - which returned -7.10%. The China region funds average tracked by Lipper Inc. returned 1.08%. For the one-year period that ended April 30, 2001, the fund returned -13.58%, while the Hang Seng, Fidelity China Region Fund Linked Index and Lipper average returned -12.10%, -12.62% and -13.15%, respectively.
Q. What drove equity markets in the region during the past six months?
A. Economic growth in the region continued to deteriorate, as exports slowed in the face of declining global demand. Concerns about a flagging U.S. economy and its impact on corporate earnings growth pressured stocks during the period. Despite aggressive interest-rate cuts in the U.S., rate-sensitive markets, such as Hong Kong, still finished down for the period. A dramatic rotation away from TMT - or technology, media and telecommunications - sectors fueled much of the negative momentum in the region. Taiwan - a stronghold for PC and semiconductor manufacturing - which struggled the most late in 2000, rebounded nicely later in the period as investors, sensing a market bottom, moved back into tech stocks. China, meanwhile, emerged as a safe haven in the region, bolstered by a healthier economy, an effective fiscal policy and its impending entry into the World Trade Organization. Mainland China-related shares also were supported by the government's decision to open up its hard currency B-share market - currently available only to international investors - to Chinese investors, a move expected to boost liquidity by making China stocks more attractive to global investors. However, the bulk of Chinese firms listed on the Hong Kong market were from the poor-performing telecom sector, so China actually dragged on the Hang Seng Index.
Q. Why did the fund outperform the Hang Seng Index, yet trail its Lipper peers?
A. Being defensive early in the period really paid off relative to the index. Underweighting telecom, particularly wireless providers, was a key component of that strategy. I was bearish overall on the group, which I felt was still trading at too rich a price given my concerns about increased regulatory risks, heightened competition and a shrinking supply of available funding for wireless companies worldwide. Holding considerably less China Mobile - which accounted for nearly 21% of the index on average during the period - provided the bulk of our relative advantage, as the stock declined more than 23%. Moreover, underweighting conglomerate Hutchison Whampoa - another benchmark giant with heavy cellular exposure - helped quite a bit, as did avoiding Pacific Century CyberWorks. This positioning also helped versus our Lipper peers, but we still failed to keep pace with the average, which benefited from generally having a much higher exposure to stronger-performing mainland Chinese and Taiwanese issues.
Q. How did some of your other strategies play out for the fund?
A. Increasing the fund's weighting in banks and property stocks bolstered performance in a falling interest-rate environment. Given my credit concerns on the global front, I chose to underweight multinational banks such as HSBC relative to the Hang Seng and focus instead on local banks where I felt business was strong. Although this strategy failed us when HSBC held up fairly well, we more than made up for it by overweighting Guoco Group and DAO Heng Bank. Finally, the fund's holdings in unregulated utilities - namely Huaneng Power and Hong Kong & China Gas - performed well, as did fast-food restaurant group Café de Coral. Switching to detractors, the one overweighting we had in telecom was in China Unicom, and it fared poorly. I owned the stock because I felt it was relatively cheap given my belief that regulators were helping the "underdog" catch up with China Mobile. Unfortunately, the stock kept coming down as earnings numbers disappointed. Poor timing in a handful of small tech stocks, including Asustek Computer and Asat Holdings, further curbed performance.
Q. What's your outlook?
A. Despite a rather bleak near-term economic outlook for Hong Kong and Taiwan, I believe the market continues to offer attractive long-term growth opportunities. I remain particularly bullish on the Taiwanese chip stocks, to which we began to increase exposure on weakness toward the end of the period. That said, I still expect to play more defense than offense in the coming months, which could involve holding a higher-than-normal weighting in mainland China, where earnings forecasts look a bit brighter.
The views expressed in this report reflect those of the portfolio manager only through the end of the period of the report as stated on the cover. The manager's views are subject to change at any time based on market or other conditions. For more information, see page 3.
Note to shareholders: Fidelity China Region Fund may invest up to 35% of its total assets in any industry that represents more than 20% of the Hong Kong, Taiwanese and Chinese market. As of April 30, 2001, the fund did not have more than 25% of its total assets invested in any one industry.
Fund Facts
Goal: long-term growth of capital by investing mainly in equity securities of Hong Kong, Taiwanese and Chinese issuers
Fund number: 352
Trading symbol: FHKCX
Start date: November 1, 1995
Size: as of April 30, 2001, more than $157 million
Manager: Joseph Tse, since inception; director of research, Fidelity Investments Management (Hong Kong), since 1994; manager, Asian portion of various global equity funds, since 1993; joined Fidelity in 1990
3Semiannual Report
China Region
Geographic Diversification (% of fund's net assets) |
|||
As of April 30, 2001 |
|||
Hong Kong |
63.7% |
|
|
Taiwan |
16.0% |
|
|
United Kingdom |
12.9% |
|
|
United States of America |
3.8% |
|
|
China |
1.9% |
|
|
Singapore |
1.0% |
|
|
Canada |
0.5% |
|
|
Cayman Islands |
0.2% |
|
As of October 31, 2000 |
|||
Hong Kong |
71.7% |
|
|
United Kingdom |
14.8% |
|
|
Taiwan |
8.3% |
|
|
United States of America |
3.6% |
|
|
China |
1.2% |
|
|
Cayman Islands |
0.3% |
|
|
Canada |
0.1% |
|
Percentages are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation |
||
|
% of fund's |
% of fund's net assets |
Stocks |
96.2 |
96.4 |
Short-Term Investments |
3.8 |
3.6 |
Top Ten Stocks as of April 30, 2001 |
||
|
% of fund's |
% of fund's net assets |
HSBC Holdings PLC |
12.2 |
14.4 |
Cheung Kong Holdings Ltd. |
9.2 |
10.8 |
Hutchison Whampoa Ltd. (Diversified Financials) |
8.8 |
8.9 |
China Mobile (Hong Kong) Ltd. (Wireless Telecommunication Services) |
6.1 |
11.3 |
Hang Seng Bank Ltd. (Banks) |
5.3 |
4.9 |
Sun Hung Kai Properties Ltd. |
4.7 |
5.0 |
Taiwan Semiconductor Manufacturing Co. Ltd. (Semiconductor Equipment |
4.6 |
3.4 |
United Microelectronics Corp. (Semiconductor Equipment |
3.5 |
3.1 |
Hong Kong & China Gas Co. Ltd. (Gas Utilities) |
3.4 |
1.8 |
Henderson Land Development |
2.5 |
1.8 |
|
60.3 |
|
Market Sectors as of April 30, 2001 |
||
|
% of fund's |
% of fund's net assets |
Financials |
52.7 |
50.1 |
Information Technology |
16.4 |
9.3 |
Consumer Discretionary |
6.9 |
8.9 |
Telecommunication Services |
6.6 |
14.2 |
Utilities |
6.2 |
5.3 |
Industrials |
5.2 |
7.0 |
Energy |
1.3 |
1.1 |
Consumer Staples |
0.7 |
0.3 |
Materials |
0.2 |
0.2 |
Effective with this report, industry classifications follow the MSCI/S&P Global Industry Classification Standard. This replaces the U.S. Standard Industrial Classification system that is being phased out. Prior period industry percentages reflect the new standard. |
Semiannual Report
China Region
(Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.2% |
|||
Shares |
Value (Note 1) |
||
CONSUMER DISCRETIONARY - 6.9% |
|||
Distributors - 2.2% |
|||
Li & Fung Ltd. |
1,828,000 |
$ 3,468,912 |
|
Hotels Restaurants & Leisure - 2.4% |
|||
Cafe de Coral Holdings Ltd. |
7,078,000 |
3,153,704 |
|
Shangri-La Asia Ltd. |
586,000 |
571,040 |
|
|
3,724,744 |
||
Media - 1.6% |
|||
Asia Satellite Telecommunications Holdings Ltd. |
320,500 |
729,427 |
|
Television Broadcasts Ltd. |
370,000 |
1,869,190 |
|
|
2,598,617 |
||
Specialty Retail - 0.2% |
|||
Esprit Holdings Ltd. |
220,000 |
249,644 |
|
Textiles & Apparel - 0.5% |
|||
Glorious Sun Enterprises Ltd. |
5,180,000 |
797,015 |
|
TOTAL CONSUMER DISCRETIONARY |
10,838,932 |
||
CONSUMER STAPLES - 0.7% |
|||
Beverages - 0.3% |
|||
Vitasoy International Holdings Ltd. |
3,496,500 |
551,435 |
|
Food & Drug Retailing - 0.2% |
|||
Convenience Retail Asia Ltd. |
1,230,200 |
257,110 |
|
Food Products - 0.2% |
|||
Tingyi (Cayman Island) Holding Corp. (a) |
1,936,000 |
307,810 |
|
TOTAL CONSUMER STAPLES |
1,116,355 |
||
ENERGY - 1.3% |
|||
Oil & Gas - 1.3% |
|||
CNOOC Ltd. |
2,070,000 |
2,003,885 |
|
FINANCIALS - 52.7% |
|||
Banks - 24.9% |
|||
Bank of East Asia Ltd. |
600,000 |
1,361,696 |
|
Bank Sinopac |
1,709,000 |
763,828 |
|
ChinaTrust Commercial Bank |
2,300,000 |
1,678,322 |
|
Citic Ka Wah Bank Ltd. |
1,332,000 |
409,893 |
|
DAO Heng Bank Group Ltd. |
454,000 |
3,376,287 |
|
Guoco Group Ltd. |
307,000 |
1,775,295 |
|
Hang Seng Bank Ltd. |
712,500 |
8,404,816 |
|
HSBC Holdings PLC (Hong Kong) (Reg.) |
1,469,182 |
19,199,268 |
|
Liu Chong Hing Bank Ltd. |
857,000 |
1,076,868 |
|
Standard Chartered PLC |
81,358 |
1,152,591 |
|
|
39,198,864 |
||
Diversified Financials - 9.9% |
|||
Aeon Credit Service (ASIA) Co. Ltd. |
883,600 |
277,573 |
|
China Everbright Ltd. |
360,000 |
348,502 |
|
Hong Kong Exchanges & Clearing Ltd. |
270,000 |
482,940 |
|
|
|||
Shares |
Value (Note 1) |
||
Hutchison Whampoa Ltd. |
1,292,500 |
$ 13,962,268 |
|
Yuanta Securities Co. Ltd. |
804,000 |
611,128 |
|
|
15,682,411 |
||
Insurance - 0.5% |
|||
Manulife Financial Corp. |
28,500 |
721,718 |
|
Real Estate - 17.4% |
|||
Amoy Properties Ltd. |
1,348,000 |
1,400,008 |
|
Cheung Kong Holdings Ltd. |
1,299,000 |
14,490,518 |
|
Henderson Land Development Co. Ltd. |
851,000 |
3,906,323 |
|
Sun Hung Kai Properties Ltd. |
809,021 |
7,520,614 |
|
Wharf Holdings Ltd. |
60,485 |
141,923 |
|
|
27,459,386 |
||
TOTAL FINANCIALS |
83,062,379 |
||
INDUSTRIALS - 5.2% |
|||
Electrical Equipment - 1.2% |
|||
Johnson Electric Holdings Ltd. |
971,320 |
1,824,549 |
|
Industrial Conglomerates - 0.7% |
|||
Citic Pacific Ltd. |
372,000 |
1,070,816 |
|
Machinery - 0.4% |
|||
Chen Hsong Holdings Ltd. |
3,870,000 |
659,961 |
|
Road & Rail - 2.9% |
|||
Kowloon Motor Bus Holdings Ltd. (a) |
248,000 |
812,453 |
|
MTR Corp. Ltd. |
2,203,000 |
3,799,201 |
|
|
4,611,654 |
||
TOTAL INDUSTRIALS |
8,166,980 |
||
INFORMATION TECHNOLOGY - 16.4% |
|||
Computers & Peripherals - 1.8% |
|||
Asustek Computer, Inc. |
347,000 |
1,577,273 |
|
Compal Electronics, Inc. |
430,000 |
732,137 |
|
Compeq Manufacturing Co. Ltd. |
83,000 |
253,618 |
|
Quanta Computer, Inc. |
91,000 |
304,348 |
|
|
2,867,376 |
||
Electronic Equipment & Instruments - 2.1% |
|||
Group Sense International Ltd. |
4,236,000 |
129,810 |
|
Hon Hai Precision Industries Co. Ltd. |
538,800 |
3,161,703 |
|
|
3,291,513 |
||
Semiconductor Equipment & Products - 11.6% |
|||
Asat Holdings Ltd. sponsored ADR |
150,400 |
706,880 |
|
ASE Test Ltd. (a) |
30,000 |
417,000 |
|
Chartered Semiconductor |
509,000 |
1,564,864 |
|
Siliconware Precision Industries Co. Ltd. |
1,350,000 |
1,050,775 |
|
Sunplus Technology Co. Ltd. |
62,000 |
305,382 |
|
Taiwan Semiconductor |
2,640,308 |
7,305,200 |
|
United Microelectronics Corp. |
3,450,600 |
5,507,951 |
|
Winbond Electronics Corp. |
1,164,310 |
1,366,445 |
|
|
18,224,497 |
||
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
INFORMATION TECHNOLOGY - continued |
|||
Software - 0.9% |
|||
Travelsky Technology Ltd. (H Shares) |
2,162,000 |
$ 1,455,360 |
|
TOTAL INFORMATION TECHNOLOGY |
25,838,746 |
||
MATERIALS - 0.2% |
|||
Chemicals - 0.2% |
|||
China Agrotech Holdings Ltd. (a) |
1,886,000 |
275,678 |
|
TELECOMMUNICATION SERVICES - 6.6% |
|||
Wireless Telecommunication Services - 6.6% |
|||
China Mobile (Hong Kong) Ltd. (a) |
1,901,500 |
9,629,195 |
|
China Unicom Ltd. |
572,000 |
803,093 |
|
|
10,432,288 |
||
UTILITIES - 6.2% |
|||
Electric Utilities - 2.8% |
|||
CLP Holdings Ltd. |
517,200 |
2,168,512 |
|
Hong Kong Electric Holdings Ltd. |
203,000 |
692,362 |
|
Huaneng Power International, Inc. |
2,606,000 |
1,528,696 |
|
|
4,389,570 |
||
Gas Utilities - 3.4% |
|||
Hong Kong & China Gas Co. Ltd. |
4,517,018 |
5,386,297 |
|
TOTAL UTILITIES |
9,775,867 |
||
TOTAL COMMON STOCKS (Cost $118,336,813) |
151,511,110 |
Convertible Bonds - 0.0% |
|||||
Moody's Ratings (unaudited) |
Principal Amount |
|
|||
CONSUMER DISCRETIONARY - 0.0% |
|||||
Hotels Restaurants & Leisure - 0.0% |
|||||
Mandarin Oriental International Ltd. |
- |
|
$ 5 |
25,500 |
Cash Equivalents - 1.8% |
|||
Shares |
Value (Note 1) |
||
Fidelity Cash Central Fund, 4.70% (b) |
2,581,492 |
$ 2,581,492 |
|
Fidelity Securities Lending |
206,500 |
206,500 |
|
TOTAL CASH EQUIVALENTS (Cost $2,787,992) |
2,787,992 |
||
TOTAL INVESTMENT PORTFOLIO - 98.0% (Cost $121,149,805) |
154,324,602 |
||
NET OTHER ASSETS - 2.0% |
3,187,728 |
||
NET ASSETS - 100% |
$ 157,512,330 |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $58,936,380 and $77,659,400, respectively. |
The fund participated in the bank borrowing program. The average daily loan balance during the period for which loans were outstanding amounted to $1,451,600. The weighted average interest rate was 5.77%. |
Income Tax Information |
At April 30, 2001, the aggregate cost of investment securities for income tax purposes was $123,079,472. Net unrealized appreciation aggregated $31,245,130, of which $40,269,253 related to appreciated investment securities and $9,024,123 related to depreciated investment securities. |
At October 31, 2000, the fund had a capital loss carryforward of approximately $40,369,000, all of which will expire on October 31, 2006. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
China Region
Statement of Assets and Liabilities
|
April 30, 2001 (Unaudited) |
|
Assets |
|
|
Investment in securities, at value (including securities loaned of $194,110) (cost $121,149,805) - See accompanying schedule |
|
$ 154,324,602 |
Foreign currency held at value |
|
3,073,401 |
Receivable for investments sold |
|
1,176,861 |
Receivable for fund shares sold |
|
37,359 |
Dividends receivable |
|
791,664 |
Interest receivable |
|
12,636 |
Redemption fees receivable |
|
11 |
Other receivables |
|
153 |
Total assets |
|
159,416,687 |
Liabilities |
|
|
Payable to custodian bank |
$ 339,920 |
|
Payable for investments purchased |
866,980 |
|
Payable for fund shares redeemed |
299,360 |
|
Accrued management fee |
92,899 |
|
Other payables and |
98,698 |
|
Collateral on securities loaned, |
206,500 |
|
Total liabilities |
|
1,904,357 |
Net Assets |
|
$ 157,512,330 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 165,030,853 |
Undistributed net investment income |
|
572,586 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
(41,264,707) |
Net unrealized appreciation (depreciation) on investments |
|
33,173,598 |
Net Assets, for 11,033,425 shares outstanding |
|
$ 157,512,330 |
Net Asset Value and redemption price per share ($157,512,330 ÷ 11,033,425 shares) |
|
$14.28 |
Maximum offering price per share (100/97.00 of $14.28) |
|
$14.72 |
Statement of Operations
|
Six months ended April 30, 2001 (Unaudited) |
|
Investment Income Dividends |
|
$ 1,809,415 |
Interest |
|
191,212 |
Security lending |
|
2,661 |
|
|
2,003,288 |
Less foreign taxes withheld |
|
(2,862) |
Total income |
|
2,000,426 |
Expenses |
|
|
Management fee |
$ 629,093 |
|
Transfer agent fees |
266,942 |
|
Accounting and security lending fees |
52,092 |
|
Non-interested trustees' compensation |
325 |
|
Custodian fees and expenses |
101,737 |
|
Registration fees |
13,204 |
|
Audit |
13,282 |
|
Legal |
481 |
|
Interest |
1,163 |
|
Reports to shareholders |
8,770 |
|
Miscellaneous |
614 |
|
Total expenses before reductions |
1,087,703 |
|
Expense reductions |
(16,186) |
1,071,517 |
Net investment income |
|
928,909 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities |
1,467,099 |
|
Foreign currency transactions |
(96,921) |
1,370,178 |
Change in net unrealized appreciation (depreciation) on: |
|
|
Investment securities |
(4,495,866) |
|
Assets and liabilities in |
16,291 |
(4,479,575) |
Net gain (loss) |
|
(3,109,397) |
Net increase (decrease) in net assets resulting from operations |
|
$ (2,180,488) |
Other Information |
|
$ 26,980 |
Expense reductions |
|
|
Directed brokerage arrangements |
|
$ 15,195 |
Transfer agent credits |
|
991 |
|
|
$ 16,186 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
China Region
Financial Statements - continued
Statement of Changes in Net Assets
Increase (Decrease) in Net Assets |
Six months ended |
Year ended
October 31, |
Operations |
$ 928,909 |
$ 1,296,755 |
Net realized gain (loss) |
1,370,178 |
16,075,619 |
Change in net unrealized appreciation (depreciation) |
(4,479,575) |
(5,942,444) |
Net increase (decrease) in net assets resulting from operations |
(2,180,488) |
11,429,930 |
Distributions to shareholders from net investment income |
(6,568,457) |
(2,289,574) |
Share transactions |
19,064,805 |
183,395,667 |
Reinvestment of distributions |
6,321,697 |
2,213,416 |
Cost of shares redeemed |
(38,996,425) |
(177,672,782) |
Net increase (decrease) in net assets resulting from share transactions |
(13,609,923) |
7,936,301 |
Redemption fees |
162,500 |
1,114,437 |
Total increase (decrease) in net assets |
(22,196,368) |
18,191,094 |
Net Assets |
|
|
Beginning of period |
179,708,698 |
161,517,604 |
End of period (including undistributed net investment income of $572,586 and $6,212,134, respectively) |
$ 157,512,330 |
$ 179,708,698 |
Other Information Shares |
|
|
Sold |
1,282,392 |
10,586,910 |
Issued in reinvestment of distributions |
427,142 |
129,289 |
Redeemed |
(2,688,727) |
(10,118,064) |
Net increase (decrease) |
(979,193) |
598,135 |
Financial Highlights
|
Six months ended |
Years ended October 31, |
||||
Selected Per-Share Data |
(Unaudited) |
2000 |
1999 |
1998 |
1997 |
1996 E |
Net asset value, beginning of period |
$ 14.96 |
$ 14.15 |
$ 10.25 |
$ 11.06 |
$ 12.97 |
$ 10.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income D |
.08 |
.10 |
.19 |
.31 |
.17 |
.29 |
Net realized and unrealized gain (loss) |
(.21) |
.80 |
3.98 |
(1.10) |
(1.95) |
2.64 |
Total from investment operations |
(.13) |
.90 |
4.17 |
(.79) |
(1.78) |
2.93 |
Less Distributions |
|
|
|
|
|
|
From net investment income |
(.56) |
(.17) |
(.32) |
(.06) |
(.14) |
(.01) |
From net realized gain |
- |
- |
- |
- |
(.08) |
- |
Total distributions |
(.56) |
(.17) |
(.32) |
(.06) |
(.22) |
(.01) |
Redemption fees added to paid in capital |
.01 |
.08 |
.05 |
.04 |
.09 |
.05 |
Net asset value, end of period |
$ 14.28 |
$ 14.96 |
$ 14.15 |
$ 10.25 |
$ 11.06 |
$ 12.97 |
Total Return B, C |
(0.93)% |
6.77% |
42.44% |
(6.85)% |
(13.36)% |
29.83% |
Ratios and Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 157,512 |
$ 179,709 |
$ 161,518 |
$ 140,824 |
$ 177,416 |
$ 109,880 |
Ratio of expenses to average net assets |
1.29% A |
1.22% |
1.34% |
1.41% |
1.31% |
1.62% |
Ratio of expenses to average net assets |
1.27% A, F |
1.21% F |
1.32% F |
1.40% F |
1.31% |
1.62% |
Ratio of net investment income to average net assets |
1.10% A |
.55% |
1.59% |
3.07% |
1.18% |
2.53% |
Portfolio turnover rate |
74% A |
103% |
84% |
109% |
174% |
118% |
A Annualized B The total returns would have been lower had certain expenses not been reduced during the periods shown. C Total returns do not include the one time sales charge and for periods of less than one year are not annualized. D Net investment income per share has been calculated based on average shares outstanding during the period. E For the period November 1, 1995 (commencement of operations) to October 31, 1996. F FMR or the fund has entered into varying arrangements with third parties who either paid or reduced a portion of the fund's expenses. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
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. Total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value). Prior to February 19, 1993, Emerging Markets operated under certain different investment policies. Accordingly, the fund's historical performance may not represent its current investment policies.
Cumulative Total Returns
Periods ended |
Past 6 |
Past 1 |
Past 5 |
Past 10 |
Fidelity |
-8.16% |
-26.07% |
-52.82% |
-16.16% |
Fidelity Emerging |
-10.91% |
-28.29% |
-54.23% |
-18.68% |
MSCI |
-7.26% |
-25.73% |
-27.40% |
66.97% |
Emerging Markets |
-7.87% |
-25.83% |
-21.11% |
9.48% |
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 10 years. For example, if you had invested $1,000 in a fund that had a 5% return over the past year, the value of your investment would be $1,050. You can compare the fund's returns to the performance of the Morgan Stanley Capital International (MSCI) Emerging Markets Free Index - a market capitalization-weighted index that is designed to represent the performance of emerging stock markets throughout the world. As of April 30, 2001, the index included over 516 equity securities of companies domiciled in 27 countries. However, to measure how the fund's performance stacked up against its peers, you can compare it to the emerging markets funds average, which reflects the performance of mutual funds with similar objectives tracked by Lipper Inc. The past six months average represents a peer group of 197 mutual funds. These benchmarks include reinvested dividends and capital gains, if any, and exclude the effect of sales charges.
Average Annual Total Returns
Periods ended |
Past 1 |
Past 5 |
Past 10 |
Fidelity Emerging Markets |
-26.07% |
-13.95% |
-1.75% |
Fidelity Emerging Markets |
-28.29% |
-14.47% |
-2.05% |
MSCI |
-25.73% |
-6.20% |
5.26% |
Emerging Markets |
-25.83% |
-4.82% |
0.65% |
Average annual total returns take the fund's 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
$10,000 Over Life of Fund: Let's say hypothetically that $10,000 was invested in Fidelity Emerging Markets Fund on April 30, 1991, and the current 3.00% sales charge was paid. As the chart shows, by April 30, 2001, the value of the investment would have been $8,132 - an 18.68% decrease on the initial investment. For comparison, look at how the Morgan Stanley Capital International Emerging Markets Free Index did over the same period. With dividends and capital gains, if any, reinvested, the same $10,000 would have grown to $16,697 - a 66.97% 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. Past performance is no guarantee of future results and you may have a gain or loss when you sell your shares.
3Semiannual Report
Emerging Markets
(Portfolio Manager photograph)
An interview with
Patti Satterthwaite, Portfolio Manager of Fidelity Emerging Markets Fund
Q. How did the fund perform, Patti?
A. For the six-month period that ended April 30, 2001, the fund returned -8.16%. That performance slightly trailed the Morgan Stanley Capital International Emerging Markets Free Index, which returned -7.26%, and the emerging markets funds average tracked by Lipper Inc., which returned -7.87% during the same period. For the 12 months that ended April 30, 2001, the fund returned -26.07%, while the MSCI Emerging Markets Free index and Lipper average returned -25.73% and -25.83%, respectively.
Q. Why did the fund lag its index and peer group during the six-month period?
A. The fund lagged the peers and index marginally during the period. The global collapse of technology, media and telecommunications (TMT) stocks in 2000 made its way into emerging markets during the second half of the period. Several of our cellular, technology and media names hurt us during this time frame. Brazil's Telesp Celular, Technology Resources in Malaysia and China Unicom were particularly hard hit on the cellular front. The notable exception was China Mobile, in which we benefited from timely trading. The global cellular meltdown was due largely to the expectation of very low-returning investments in third-generation (3G) wireless networks for the major developed markets. The emerging plays went down in sympathy despite the fact that they do not have an immediate need to invest in pricey 3G technology. Media stocks, such as Brazil's Globo Cabo, Taiwan's GigaMedia and Mexico's Grupo Televisa, also detracted from fund performance. The fund no longer held Globo Cabo at the close of the period. Finally, several technology stocks, most notably Infosys in India and Israeli firms Orbotech and AudioCodes, further dampened returns. Business at Indian software companies, such as Infosys, held up better than many of their competitors in the developed markets; however, their share prices still declined as valuation comparisons within the industry continued to fall.
Q. How about some moves that worked out well for the fund?
A. Reducing the fund's weighting in Turkey early in the period proved wise, as stocks swooned in response to a budding financial crisis in the country, which included a currency devaluation in February. Government reforms slated to end Turkey's history of rampant inflation led to speculation regarding the health of the banking system, which triggered a massive flight of foreign reserves from the country. However, during the spring, the International Monetary Fund announced its support for a new fiscal program, which helped stabilize equity prices. In addition, overweighting certain beverage stocks, particularly South African Breweries, Brazil's AmBev and Mexico's Fomento, helped lift returns. Banks, buoyed by lower interest rates in the rest of the world, also aided performance. Our top performers here included Indian banks Housing Development and ICICI Bank, Kookmin Bank in Korea and Banacci in Mexico. Several resource/commodity stocks in South Africa, such as Sappi and De Beers, also fared well for us. Finally, the decision to underweight Israeli tech stock Check Point and South Africa's Dimension Data paid off nicely for us as each stock declined more than 40% during the period.
Q. Patti, what's your outlook for these markets in the coming months?
A. How emerging markets fare going forward hinges on what central banks do in the rest of the world. Further interest-rate cuts and rising expectations of a global economic recovery would be welcome news, particularly in Argentina and Turkey, which remain thorns in the sides of most emerging markets.
The views expressed in this report reflect those of the portfolio manager only through the end of the period of the report as stated on the cover. The manager's views are subject to change at any time based on market or other conditions. For more information, see page 3.
Note to shareholders: Effective May 30, 2001, John Carlson became Portfolio Manager of Fidelity Emerging Markets Fund.
Fund Facts
Goal: capital appreciation by investing mainly in equity securities of emerging market issuers
Fund number: 322
Trading symbol: FEMKX
Start date: November 1, 1990
Size: as of April 30, 2001, more than
$272 million
Manager: Patti Satterthwaite, since 2000; joined Fidelity in 1986
3Semiannual Report
Emerging Markets
Geographic Diversification (% of fund's net assets) |
|||
As of April 30, 2001 |
|||
Taiwan |
13.6% |
|
|
Korea (South) |
12.5% |
|
|
Brazil |
9.2% |
|
|
Mexico |
9.2% |
|
|
India |
8.0% |
|
|
Hong Kong |
7.2% |
|
|
South Africa |
5.8% |
|
|
Russia |
5.5% |
|
|
Israel |
4.7% |
|
|
Other |
24.3% |
|
As of October 31, 2000 |
|||
Mexico |
11.8% |
|
|
Brazil |
11.6% |
|
|
Taiwan |
9.6% |
|
|
Korea (South) |
9.2% |
|
|
India |
7.4% |
|
|
Malaysia |
6.9% |
|
|
South Africa |
6.2% |
|
|
Hong Kong |
6.1% |
|
|
Russia |
4.7% |
|
|
Other |
26.5% |
|
Percentages are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation |
||
|
% of fund's |
% of fund's net assets |
Stocks |
95.9 |
97.6 |
Short-Term Investments |
4.1 |
2.4 |
Top Ten Stocks as of April 30, 2001 |
||
|
% of fund's net assets |
% of fund's net assets |
China Mobile (Hong Kong) Ltd. (Hong Kong, Wireless Telecommunication Services) |
4.8 |
3.9 |
Samsung Electronics Co. Ltd. (Korea (South), Semiconductor Equipment & Products) |
4.1 |
1.4 |
Telefonos de Mexico SA de CV Series L sponsored ADR (Mexico, Diversified Telecommunication Services) |
3.4 |
4.4 |
Taiwan Semiconductor Manufacturing Co. Ltd. |
2.6 |
3.0 |
Companhia de Bebidas das Americas (AmBev) sponsored ADR (Brazil, Beverages) |
2.5 |
2.2 |
Hon Hai Precision Industries Co. Ltd. (Taiwan, Electronic Equipment & Instruments) |
2.3 |
0.6 |
Unified Energy Systems sponsored ADR (Russia, Electric Utilities) |
2.2 |
2.1 |
SK Telecom Co. Ltd. (Korea (South), Wireless Telecommunication Services) |
2.1 |
2.0 |
United Microelectronics Corp. (Taiwan, Semiconductor Equipment & Products) |
2.1 |
2.0 |
Lukoil Oil Co. sponsored ADR (Russia, Oil & Gas) |
2.0 |
2.3 |
|
28.1 |
|
Market Sectors as of April 30, 2001 |
||
|
% of fund's |
% of fund's net assets |
Information Technology |
21.4 |
12.8 |
Financials |
19.1 |
20.4 |
Telecommunication Services |
17.7 |
21.2 |
Consumer Staples |
9.5 |
10.3 |
Materials |
7.1 |
6.6 |
Consumer Discretionary |
6.4 |
9.2 |
Energy |
6.2 |
7.8 |
Utilities |
4.8 |
6.6 |
Health Care |
2.5 |
2.7 |
Industrials |
1.2 |
0.0 |
Effective with this report, industry classifications follow the MSCI/S&P Global Industry Classification Standard. This replaces the U.S. Standard Industrial Classification system that is being phased out. Prior period industry percentages reflect the new standard. |
Semiannual Report
Emerging Markets
(Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.8% |
|||
Shares |
Value (Note 1) |
||
Argentina - 0.5% |
|||
Perez Companc SA sponsored ADR |
97,259 |
$ 1,488,063 |
|
Brazil - 9.2% |
|||
Banco Itau SA (PN) |
16,426,000 |
1,322,147 |
|
Companhia Brasileira de Distribuicao Grupo Pao de Acucar sponsored ADR |
90,300 |
2,569,035 |
|
Companhia de Bebidas das Americas (AmBev) sponsored ADR |
278,882 |
6,804,721 |
|
Companhia Paranaense de Energia-Copel sponsored ADR |
60,600 |
469,650 |
|
Companhia Vale do Rio Doce (PN-A) |
86,000 |
1,994,543 |
|
Petroleo Brasileiro SA Petrobras (PN) |
184,500 |
4,480,355 |
|
Tele Norte Leste Participacoes SA ADR |
47,800 |
835,544 |
|
Telesp Celular Participacoes SA ADR |
251,100 |
4,218,480 |
|
Uniao de Bancos Brasileiros SA (Unibanco) GDR |
97,600 |
2,347,280 |
|
TOTAL BRAZIL |
25,041,755 |
||
British Virgin Islands - 0.5% |
|||
MIH Ltd. Class A (a) |
115,600 |
1,293,564 |
|
Chile - 0.9% |
|||
Banco Santander Chile sponsored ADR |
29,100 |
495,282 |
|
Banco Santiago SA sponsored ADR |
10,000 |
212,500 |
|
Distribucion Y Servicio D&S SA sponsored ADR |
114,900 |
1,666,050 |
|
TOTAL CHILE |
2,373,832 |
||
China - 0.7% |
|||
Huaneng Power International, Inc. sponsored ADR |
85,400 |
1,963,346 |
|
Croatia - 0.8% |
|||
Pliva D.D.: |
|
|
|
GDR (c) |
55,300 |
641,480 |
|
unit |
139,100 |
1,613,560 |
|
TOTAL CROATIA |
2,255,040 |
||
Egypt - 1.1% |
|||
Commercial International Bank Ltd. |
160,780 |
1,550,633 |
|
Egyptian Co. for Mobile Services (MobiNil) |
93,800 |
1,471,562 |
|
TOTAL EGYPT |
3,022,195 |
||
Greece - 1.0% |
|||
National Bank of Greece SA |
70,300 |
2,728,071 |
|
Hong Kong - 7.2% |
|||
China Mobile (Hong Kong) Ltd. (a) |
2,602,500 |
13,179,059 |
|
CNOOC Ltd. |
2,722,000 |
2,635,060 |
|
Hutchison Whampoa Ltd. |
345,100 |
3,727,953 |
|
TOTAL HONG KONG |
19,542,072 |
||
Hungary - 0.9% |
|||
Matav Rt. sponsored ADR |
142,500 |
2,379,750 |
|
India - 8.0% |
|||
Dr. Reddy's Laboratories Ltd. |
19,900 |
476,470 |
|
|
|||
Shares |
Value (Note 1) |
||
Hindustan Lever Ltd. (a) |
488,600 |
$ 2,198,387 |
|
Housing Development Finance Corp. Ltd. |
203,100 |
2,498,642 |
|
Hughes Software Systems Ltd. |
93,800 |
1,499,618 |
|
ICICI Bank Ltd. |
134,100 |
453,203 |
|
ICICI Bank Ltd. sponsored ADR (a) |
202,700 |
1,345,928 |
|
Infosys Technologies Ltd. |
49,776 |
3,961,464 |
|
ITC Ltd. |
115,700 |
2,067,853 |
|
Ranbaxy Laboratories Ltd. |
117,000 |
1,251,181 |
|
Reliance Industries Ltd. |
541,868 |
3,967,992 |
|
State Bank of India |
423,800 |
1,900,043 |
|
Zee Telefilms Ltd. (a) |
91,800 |
194,124 |
|
TOTAL INDIA |
21,814,905 |
||
Indonesia - 0.7% |
|||
Gudang Garam PT Perusahaan |
384,500 |
379,528 |
|
Sampoerna, Hanjaya Mandala |
1,383,000 |
1,484,342 |
|
TOTAL INDONESIA |
1,863,870 |
||
Israel - 4.7% |
|||
AudioCodes Ltd. (a) |
144,900 |
1,222,956 |
|
Bank Leumi le-Israel BM |
371,008 |
781,022 |
|
Check Point Software Technologies Ltd. (a) |
73,850 |
4,632,611 |
|
Orbotech Ltd. |
98,250 |
3,383,730 |
|
Teva Pharmaceutical Industries Ltd. sponsored ADR |
48,500 |
2,640,825 |
|
VocalTec Communications Ltd. (a) |
36,500 |
104,025 |
|
TOTAL ISRAEL |
12,765,169 |
||
Korea (South) - 12.5% |
|||
H&CB |
134,360 |
2,555,593 |
|
Hyundai Motor Co. Ltd. |
197,880 |
3,095,160 |
|
Kookmin Bank |
359,065 |
4,253,159 |
|
Kookmin Credit Card Co. Ltd. |
73,550 |
1,943,461 |
|
KorAm Bank Ltd. (a) |
152,240 |
832,291 |
|
Korea Electric Power Corp. |
146,340 |
2,527,891 |
|
Korea Telecom |
690 |
33,117 |
|
Samsung Electronics Co. Ltd. |
64,595 |
11,231,774 |
|
Shinhan Bank |
187,700 |
1,667,493 |
|
SK Telecom Co. Ltd. |
33,640 |
5,785,464 |
|
TOTAL KOREA (SOUTH) |
33,925,403 |
||
Malaysia - 4.6% |
|||
AMMB Holdings BHD |
1,474,000 |
1,113,258 |
|
Amway (Malaysia) Holdings BHD |
912,000 |
1,156,800 |
|
British American Tobacco BHD (Malaysia) |
276,700 |
2,530,349 |
|
Courts Mammoth BHD |
943,000 |
719,658 |
|
Genting BHD |
246,000 |
517,895 |
|
Malayan Banking BHD |
679,000 |
1,751,105 |
|
Tanjong PLC |
526,000 |
858,211 |
|
Technology Resources Industries BHD |
3,492,000 |
1,635,726 |
|
Tenaga Nasional BHD |
836,000 |
2,134,000 |
|
TOTAL MALAYSIA |
12,417,002 |
||
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
Mexico - 9.2% |
|||
Banacci SA de CV Series O |
2,464,000 |
$ 4,490,903 |
|
Fomento Economico Mexicano SA de CV sponsored ADR |
59,000 |
2,253,800 |
|
Grupo Iusacell SA de CV sponsored ADR (a) |
106,400 |
867,160 |
|
Grupo Televisa SA de CV sponsored GDR (a) |
80,575 |
3,064,267 |
|
Telefonos de Mexico SA de CV Series L sponsored ADR |
264,800 |
9,162,080 |
|
Wal-Mart de Mexico SA de CV Series C |
2,284,300 |
5,104,774 |
|
TOTAL MEXICO |
24,942,984 |
||
Peru - 0.4% |
|||
Compania de Minas Buenaventura SA sponsored ADR |
79,500 |
1,197,270 |
|
Poland - 1.9% |
|||
Agora SA unit (a) |
72,400 |
1,205,460 |
|
Polski Koncern Naftowy Orlen SA |
277,500 |
1,302,587 |
|
Telekomunikacja Polska SA |
507,900 |
2,742,980 |
|
TOTAL POLAND |
5,251,027 |
||
Russia - 5.5% |
|||
Lukoil Oil Co. sponsored ADR |
131,200 |
5,430,368 |
|
Mobile TeleSystems Ojsc sponsored ADR (a) |
62,900 |
1,805,230 |
|
Unified Energy Systems sponsored ADR |
566,400 |
6,088,800 |
|
YUKOS Corp. sponsored ADR (a) |
36,600 |
1,573,800 |
|
TOTAL RUSSIA |
14,898,198 |
||
South Africa - 5.8% |
|||
ABSA Group Ltd. (a) |
400,500 |
1,751,596 |
|
Anglo American Platinum Corp. Ltd. |
70,300 |
3,148,936 |
|
De Beers Consolidated Mines Ltd./De Beers Centenary AG unit |
91,600 |
3,838,606 |
|
Impala Platinum Holdings Ltd. |
20,900 |
1,001,182 |
|
Liberty Life Association of Africa Ltd. |
163,800 |
1,069,989 |
|
Nedcor Ltd. |
123,200 |
2,253,378 |
|
Sappi Ltd. |
306,000 |
2,790,817 |
|
TOTAL SOUTH AFRICA |
15,854,504 |
||
Taiwan - 13.6% |
|||
ChinaTrust Commercial Bank |
3,378,155 |
2,465,057 |
|
Compeq Manufacturing Co. Ltd. |
532,000 |
1,625,600 |
|
GigaMedia Ltd. (a) |
262,700 |
517,519 |
|
Hon Hai Precision Industries Co. Ltd. |
1,071,520 |
6,287,728 |
|
Macronix International Co. Ltd. |
1,121,780 |
1,722,405 |
|
Quanta Computer, Inc. |
475,000 |
1,588,629 |
|
Realtek Semiconductor Corp. |
233,000 |
1,260,991 |
|
Siliconware Precision Industries Co. Ltd. |
4,342,760 |
3,380,196 |
|
Taishin International Bank |
1,978,000 |
890,070 |
|
|
|||
Shares |
Value (Note 1) |
||
Taiwan Semiconductor Manufacturing Co. Ltd. (a) |
2,579,467 |
$ 7,136,865 |
|
United Microelectronics Corp. |
3,597,000 |
5,741,639 |
|
Winbond Electronics Corp. |
1,359,000 |
1,594,935 |
|
Yuanta Securities Co. Ltd. |
3,673,000 |
2,791,882 |
|
TOTAL TAIWAN |
37,003,516 |
||
Thailand - 1.0% |
|||
Advanced Info Service PCL (For. Reg.) |
275,400 |
2,787,181 |
|
Turkey - 2.4% |
|||
Anadolu Efes Biracilk Ve Malt Sanyii AS |
26,729,475 |
1,330,085 |
|
Hurriyet Gazetecilik ve Matbaacilik AS |
622,729,600 |
3,261,858 |
|
Koytas Tekstil Sanayi ve Ticaret AS (a) |
26,770,000 |
0 |
|
Yapi ve Kredi Bankasi AS |
439,799,556 |
2,034,909 |
|
TOTAL TURKEY |
6,626,852 |
||
United Kingdom - 2.2% |
|||
Billiton PLC |
330,900 |
1,607,770 |
|
Dimension Data Holdings PLC (a) |
333,100 |
1,543,857 |
|
South African Breweries PLC |
404,600 |
2,753,717 |
|
TOTAL UNITED KINGDOM |
5,905,344 |
||
Venezuela - 0.5% |
|||
Compania Anonima Nacional Telefono de Venezuela sponsored ADR |
61,200 |
1,402,092 |
|
TOTAL COMMON STOCKS (Cost $264,502,737) |
260,743,005 |
||
Convertible Preferred Stocks - 0.1% |
|||
|
|
|
|
Philippines - 0.1% |
|||
First E Bank Corp. (a) |
22,521,380 |
350,527 |
|
Cash Equivalents - 4.5% |
|||
|
|
|
|
Fidelity Cash Central Fund, 4.70% (b) |
8,743,521 |
8,743,521 |
|
Fidelity Securities Lending Cash Central Fund, 4.59% (b) |
3,364,076 |
3,364,076 |
|
TOTAL CASH EQUIVALENTS (Cost $12,107,597) |
12,107,597 |
||
TOTAL INVESTMENT PORTFOLIO - 100.4% (Cost $277,469,830) |
273,201,129 |
||
NET OTHER ASSETS - (0.4)% |
(1,084,998) |
||
NET ASSETS - 100% |
$ 272,116,131 |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(c) Security exempt from registration under Rule 144A of the Securities |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $128,459,804 and $137,069,898, respectively. |
Income Tax Information |
At April 30, 2001, the aggregate cost of investment securities for income tax purposes was $279,008,391. Net unrealized depreciation aggregated $5,807,262, of which $41,848,913 related to appreciated investment securities and $47,656,175 related to depreciated investment securities. |
At October 31, 2000, the fund had a capital loss carryforward of approximately $471,797,000 of which $97,014,000, $19,326,000, $309,416,000 and $46,041,000 will expire on September 30, 2004, 2006, 2007 and 2008, respectively. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Emerging Markets
Statement of Assets and Liabilities
|
April 30, 2001 (Unaudited) |
|
Assets |
|
|
Investment in securities, at value (including Securities loaned of $3,243,778) (cost $277,469,830) - See accompanying schedule |
|
$ 273,201,129 |
Foreign currency held at value |
|
2,559,432 |
Receivable for investments sold |
|
206,110 |
Receivable for fund shares sold |
|
180,228 |
Dividends receivable |
|
1,014,819 |
Interest receivable |
|
26,894 |
Redemption fees receivable |
|
481 |
Other receivables |
|
3,294 |
Total assets |
|
277,192,387 |
Liabilities |
|
|
Payable for investments purchased |
$ 965,164 |
|
Payable for fund shares redeemed |
335,253 |
|
Accrued management fee |
157,584 |
|
Other payables and accrued expenses |
254,179 |
|
Collateral on securities loaned, |
3,364,076 |
|
Total liabilities |
|
5,076,256 |
Net Assets |
|
$ 272,116,131 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 757,692,833 |
Undistributed net investment income |
|
1,263,793 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
(482,551,340) |
Net unrealized appreciation (depreciation) on investments |
|
(4,289,155) |
Net Assets, for 34,122,545 |
|
$ 272,116,131 |
Net Asset Value and redemption price per share ($272,116,131 ÷ 34,122,545 shares) |
|
$7.97 |
Maximum offering price per share (100/97.00 of $7.97) |
|
$8.22 |
Statement of Operations
|
Six months ended April 30, 2001 (Unaudited) |
|
Investment Income Dividends |
|
$ 3,342,963 |
Special dividend from Companhia Siderurgica Nacional ADR |
|
419,408 |
Interest |
|
227,319 |
Security lending |
|
39,866 |
|
|
4,029,556 |
Less foreign taxes withheld |
|
(311,606) |
Total income |
|
3,717,950 |
Expenses |
|
|
Management fee |
$ 1,038,937 |
|
Transfer agent fees |
636,296 |
|
Accounting and security lending fees |
86,152 |
|
Non-interested trustees' compensation |
1,033 |
|
Custodian fees and expenses |
211,354 |
|
Registration fees |
23,802 |
|
Audit |
31,801 |
|
Legal |
3,092 |
|
Reports to shareholders |
24,605 |
|
Miscellaneous |
74,109 |
|
Total expenses before reductions |
2,131,181 |
|
Expense reductions |
(77,361) |
2,053,820 |
Net investment income |
|
1,664,130 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities |
(7,249,637) |
|
Foreign currency transactions |
(514,090) |
(7,763,727) |
Change in net unrealized appreciation (depreciation) on: |
|
|
Investment securities |
(20,160,872) |
|
Assets and liabilities in |
8,318 |
(20,152,554) |
Net gain (loss) |
|
(27,916,281) |
Net increase (decrease) in net assets resulting from operations |
|
$ (26,252,151) |
Other Information |
|
$ 43,013 |
Expense reductions |
|
|
Directed brokerage arrangements |
|
$ 70,776 |
Custodian credits |
|
688 |
Transfer agent credits |
|
5,897 |
|
|
$ 77,361 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Emerging Markets
Financial Statements - continued
Statement of Changes in Net Assets
Increase (Decrease) in Net Assets |
Six months ended |
Year ended
October 31, |
Operations |
$ 1,664,130 |
$ 699,827 |
Net realized gain (loss) |
(7,763,727) |
763,639 |
Change in net unrealized appreciation (depreciation) |
(20,152,554) |
(20,591,490) |
Net increase (decrease) in net assets resulting from operations |
(26,252,151) |
(19,128,024) |
Distributions to shareholders from net investment income |
(1,018,114) |
- |
Share transactions |
40,098,815 |
213,407,205 |
Reinvestment of distributions |
992,591 |
- |
Cost of shares redeemed |
(46,293,845) |
(292,885,323) |
Net increase (decrease) in net assets resulting from share transactions |
(5,202,439) |
(79,478,118) |
Redemption fees |
143,869 |
658,998 |
Total increase (decrease) in net assets |
(32,328,835) |
(97,947,144) |
Net Assets |
|
|
Beginning of period |
304,444,966 |
402,392,110 |
End of period (including undistributed net investment income of $1,263,793 and $617,777, respectively) |
$ 272,116,131 |
$ 304,444,966 |
Other Information Shares |
|
|
Sold |
4,695,847 |
18,237,804 |
Issued in reinvestment of distributions |
122,090 |
- |
Redeemed |
(5,635,112) |
(26,333,184) |
Net increase (decrease) |
(817,175) |
(8,095,380) |
Financial Highlights
|
Six months ended |
Years ended October 31, |
||||
Selected Per-Share Data |
(Unaudited) |
2000 |
1999 |
1998 |
1997 |
1996 |
Net asset value, beginning of period |
$ 8.71 |
$ 9.35 |
$ 6.74 |
$ 10.35 |
$ 16.61 |
$ 15.14 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income D |
.05 G |
.02 F |
.07 |
.09 |
.15 |
.12 |
Net realized and unrealized gain (loss) |
(.76) |
(.68) |
2.53 |
(3.47) |
(6.17) |
1.60 |
Total from investment operations |
(.71) |
(.66) |
2.60 |
(3.38) |
(6.02) |
1.72 |
Less Distributions |
|
|
|
|
|
|
From net investment income |
(.03) |
- |
- |
(.08) |
(.13) |
(.18) |
In excess of net investment income |
- |
- |
- |
(.15) |
(.12) |
(.09) |
Total distributions |
(.03) |
- |
- |
(.23) |
(.25) |
(.27) |
Redemption fees added to paid in capital |
.00 |
.02 |
.01 |
- |
.01 |
.02 |
Net asset value, end of period |
$ 7.97 |
$ 8.71 |
$ 9.35 |
$ 6.74 |
$ 10.35 |
$ 16.61 |
Total Return B, C |
(8.16)% |
(6.84)% |
38.72% |
(33.23)% |
(36.74)% |
11.69% |
Ratios and Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 272,116 |
$ 304,445 |
$ 402,392 |
$ 270,709 |
$ 499,168 |
$ 1,263,164 |
Ratio of expenses to average net assets |
1.53% A |
1.39% |
1.45% |
1.59% |
1.36% |
1.30% |
Ratio of expenses to average net assets after |
1.47% A, E |
1.35% E |
1.42% E |
1.56% E |
1.35% E |
1.29% E |
Ratio of net investment income to average net assets |
1.19% A |
.15% |
.90% |
1.01% |
.89% |
.74% |
Portfolio turnover rate |
96% A |
100% |
94% |
87% |
69% |
77% |
A Annualized B The total returns would have been lower had certain expenses not been reduced during the periods shown. C Total returns do not include the one time sales charge and for periods of less than one year are not annualized. D Net investment income per share has been calculated based on average shares outstanding during the period. E FMR or the fund has entered into varying arrangements with third parties who either paid or reduced a portion of the fund's expenses. F Investment income per share reflects a special dividend which amounted to $.02 per share. G Investment income per share reflects a special dividend from Companhia Siderurgica Nacional ADR which amounted to $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
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. Total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value). If Fidelity had not reimbursed certain fund expenses, the past 10 year total returns would have been lower. Total returns do not include the effect of the 3.00% sales load which was eliminated as of March 1, 2000.
Cumulative Total Returns
Periods ended |
Past 6 |
Past 1 |
Past 5 |
Past 10 |
Fidelity Europe |
-9.67% |
-15.60% |
72.05% |
197.10% |
MSCI Europe |
-7.04% |
-13.27% |
78.90% |
212.19% |
European Region |
-10.16% |
-17.48% |
66.16% |
181.35% |
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 10 years. For example, if you had invested $1,000 in a fund that had a 5% return over the past year, the value of your investment would be $1,050. You can compare the fund's returns to the performance of the Morgan Stanley Capital International (MSCI) Europe Index - a market capitalization-weighted index that is designed to represent the performance of developed stock markets in Europe. As of April 30, 2001, the index included over 476 equity securities of companies domiciled in 15 European countries. To measure how the fund's performance stacked up against its peers, you can compare it to the European region funds average, which reflects the performance of mutual funds with similar objectives tracked by Lipper Inc. The past six months average represents a peer group of 174 mutual funds. These benchmarks include reinvested dividends and capital gains, if any, and exclude the effect of sales charges.
Average Annual Total Returns
Periods ended |
Past 1 |
Past 5 |
Past 10 |
Fidelity Europe |
-15.60% |
11.46% |
11.50% |
MSCI Europe |
-13.27% |
12.34% |
12.06% |
European Region Funds Average |
-17.48% |
10.47% |
10.67% |
Average annual total returns take the fund's cumulative return and show you what would have happened if the fund had performed at a constant rate each year.
$10,000 Over 10 Years
$10,000 Over 10 Years: Let's say hypothetically that $10,000 was invested in Fidelity Europe Fund on April 30, 1991. As the chart shows, by April 30, 2001, the value of the investment would have grown to $29,710 - a 197.10% increase on the initial investment. For comparison, look at how the Morgan Stanley Capital International Europe Index did over the same period. With dividends and capital gains, if any, reinvested, the same $10,000 would have grown to $31,219 - a 212.19% 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. Past performance is no guarantee of future results and you may have a gain or loss when you sell your shares.
3Semiannual Report
Europe
(Portfolio Manager photograph)
An interview with Thierry Serero, Portfolio Manager of Fidelity Europe Fund
Q. How did the fund perform, Thierry?
A. For the six months ending April 30, 2001, the fund fell 9.67%. That beat the performance of the European region funds average tracked by Lipper Inc., which declined 10.16%. However, the fund trailed its benchmark, the Morgan Stanley Capital International (MSCI) Europe Index, which was down 7.04%. For the 12-month period ending April 30, 2001, the fund returned -15.60%, the Lipper average lost 17.48%, and the MSCI Europe Index declined 13.27%.
Q. Why did the fund's return lag the MSCI benchmark during the six-month period?
A. Investors' preference for value stocks during the period accounted for much of the fund's underperformance. Given the volatility and general decline of European markets during the past six months, defensive sectors such as health care, financials, consumer staples and energy were top performers. With the exception of energy, the fund was underweighted in all of these sectors relative to the index, as I typically position the fund with a higher growth bias. For instance, I overweighted information technology by a two-to-one margin for most of the period. Unfortunately, that sector became plagued by overcapacity in many industries, a slowdown in demand and numerous earnings woes. Accordingly, the fund's performance suffered.
Q. In light of the European market environment, what helped the fund outperform its peer average?
A. Much of the fund's outperformance occurred in April, the final month of the period. A strong rally in technology, spurred in large part by interest-rate cuts by central banks around the world, had a sharply positive effect, as investors grew increasingly optimistic that the much-maligned technology, media and telecommunications (TMT) sectors had finally reached a bottom.
Q. What stocks performed well for the fund?
A. Despite the downturn in telecommunications, Nokia - based in Finland - was the fund's best-performing stock on an absolute basis for the period. In my opinion, Nokia is arguably the best-positioned manufacturer of mobile telephony equipment in Europe, and it continues to dominate its competitors in terms of market share. Swedish company Nobel Biocare was a top performer in the health sector. Nobel is the world's leading producer of innovative dental implants and industrialized dental prosthetics. French property company Unibail was another stong contributor, following analyst upgrades and strong results. The company owns and operates office buildings and shopping centers in France, with its office properties located almost exclusively in the Paris region.
Q. What stocks were particular disappointments?
A. Baltimore Technologies, an Irish information technology company that produces security software, was the biggest detractor from performance on an individual security basis. Cutbacks in e-business projects and a first-quarter operating loss of $108 million drove the company's stock price down. Another software company, Germany's Brokat, was the fund's second-largest detractor. The company, which develops payment software and mobile business solutions, experienced slowing sales and cut its 2001 revenue forecast by 20 percent. Overweighting telecommunications company Vodafone also hurt returns. U.K.-based Vodafone is a major player in the European mobile telecommunications market and has developed a dominant global "footprint" through aggressive merger and acquisition activity. However, the stock's poor results reflect the continuing underperformance of the sector, as investors reflect upon the negative outlook for telecommunications companies.
Q. What's your outlook, Thierry?
A. The short-term outlook for Europe's stock markets remains uncertain. The rise in profit warnings from companies might lead to corporate growth expectations being revised down further. Merger and acquisition activity has slowed to the lowest level in almost three years, as falling equity markets curb company expansion plans. Worsening economic conditions and equity market volatility also has reduced IPO activity considerably. Companies looking to raise capital are likely to postpone their plans until economic conditions improve and price stability returns to the equity markets. This also should raise the prospect of higher and better quality companies with strong fundamentals coming to the market.
The views expressed in this report reflect those of the portfolio manager only through the end of the period of the report as stated on the cover. The manager's views are subject to change at any time based on market or other conditions. For more information, see page 3.
Fund Facts
Goal: long-term growth of capital by investing mainly in equity securities of European issuers
Fund number: 301
Trading symbol: FIEUX
Start date: October 1, 1986
Size: as of April 30, 2001, more than $1.3 billion
Manager: Thierry Serero, since 1998; manager, several funds for Fidelity International Limited, since 1994; research analyst, Fidelity International Services Limited, 1991-1994; joined Fidelity in 1991
3
Semiannual Report
Europe
Geographic Diversification (% of fund's net assets) |
|||
As of April 30, 2001 |
|||
United Kingdom |
22.1% |
|
|
France |
20.7% |
|
|
Germany |
16.3% |
|
|
United States of America |
7.8% |
|
|
Italy |
6.8% |
|
|
Netherlands |
6.2% |
|
|
Switzerland |
5.6% |
|
|
Spain |
4.6% |
|
|
Finland |
3.8% |
|
|
Other |
6.1% |
|
As of October 31, 2000 |
|||
United Kingdom |
26.9% |
|
|
Germany |
13.6% |
|
|
France |
12.5% |
|
|
Switzerland |
10.7% |
|
|
Italy |
8.5% |
|
|
Sweden |
7.8% |
|
|
United States of America |
6.6% |
|
|
Netherlands |
4.3% |
|
|
Spain |
2.7% |
|
|
Other |
6.4% |
|
Percentages are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation |
||
|
% of fund's |
% of fund's net assets |
Stocks |
93.4 |
97.5 |
Bonds |
2.3 |
1.1 |
Short-Term Investments |
4.3 |
1.4 |
Top Ten Stocks as of April 30, 2001 |
||
|
% of fund's |
% of fund's net assets |
Marschollek Lautenschlaeger und Partner AG (Germany, Insurance) |
4.3 |
3.7 |
Vodafone Group PLC (United Kingdom, Wireless Telecommunication Services) |
3.6 |
5.0 |
BP Amoco PLC (United Kingdom, Oil & Gas) |
3.4 |
2.4 |
Nokia AB (Finland, Communications Equipment) |
2.9 |
1.6 |
Business Objects SA |
2.8 |
2.2 |
Luxottica Group Spa sponsored ADR (Italy, Health Care Equipment & Supplies) |
2.6 |
2.3 |
Bayer AG (Germany, Chemicals) |
2.3 |
2.7 |
TotalFinaElf SA Series B |
2.3 |
2.2 |
SAP AG (Germany, Software) |
2.2 |
0.0 |
Royal Dutch Petroleum Co. |
2.2 |
2.0 |
|
28.6 |
|
Market Sectors as of April 30, 2001 |
||
|
% of fund's |
% of fund's net assets |
Financials |
22.0 |
24.4 |
Information Technology |
16.1 |
14.9 |
Industrials |
10.8 |
7.6 |
Energy |
10.6 |
8.0 |
Health Care |
10.5 |
9.7 |
Telecommunication Services |
8.2 |
11.8 |
Consumer Discretionary |
7.3 |
13.1 |
Materials |
5.5 |
3.0 |
Consumer Staples |
4.5 |
6.0 |
Utilities |
0.2 |
0.1 |
Effective with this report, industry classifications follow the MSCI/S&P Global Industry Classification Standard. This replaces the U.S. Standard Industrial Classification system that is being phased out. Prior period industry percentages reflect the new standard. |
Semiannual Report
Europe
(Unaudited)
Showing Percentage of Net Assets
Common Stocks - 87.9% |
|||
Shares |
Value (Note 1) |
||
Belgium - 0.2% |
|||
Integrated Production & Test Engineering (IPTE) |
77,200 |
$ 1,178,060 |
|
Ubizen NV (a) |
62,800 |
629,593 |
|
TOTAL BELGIUM |
1,807,653 |
||
Croatia - 0.3% |
|||
Pliva D.D. unit |
377,100 |
4,374,360 |
|
Finland - 3.8% |
|||
Kone Oyj (B Shares) |
65,100 |
4,360,632 |
|
Nokia AB |
1,114,330 |
38,098,942 |
|
Sonera Corp. |
692,160 |
7,657,632 |
|
TOTAL FINLAND |
50,117,206 |
||
France - 20.2% |
|||
ActivCard SA (a) |
1,099,100 |
14,068,480 |
|
Alstom SA (a) |
435,620 |
12,560,667 |
|
ALTEN (a) |
29,015 |
3,433,997 |
|
Atos SA (a) |
145,880 |
12,295,350 |
|
BNP Paribas SA |
291,803 |
25,940,540 |
|
Business Objects SA |
999,555 |
37,068,457 |
|
Credit Lyonnais SA |
339,600 |
13,100,225 |
|
Dassault Systemes SA |
327,326 |
16,175,482 |
|
Euler SA |
150,700 |
7,106,210 |
|
Isis SA |
3,200 |
323,367 |
|
L'Oreal SA |
136,120 |
9,908,823 |
|
Lafarge SA |
85,900 |
8,253,595 |
|
Neopost SA (a) |
389,364 |
9,326,981 |
|
Technip SA |
154,590 |
24,070,220 |
|
TotalFinaElf SA Series B |
199,327 |
29,787,428 |
|
TRANSGENE SA sponsored ADR (a)(e) |
366,500 |
1,224,110 |
|
Unibail |
172,808 |
27,443,431 |
|
Usinor |
952,120 |
12,442,738 |
|
TOTAL FRANCE |
264,530,101 |
||
Germany - 11.0% |
|||
Articon-Integralis AG (Reg. D) (a) |
131,150 |
4,945,142 |
|
Bayer AG |
707,790 |
29,827,686 |
|
Brokat AG (a) |
522,880 |
3,827,168 |
|
Deutsche Boerse AG |
9 |
2,887 |
|
Deutsche Telekom AG (Reg.) |
945,720 |
24,500,049 |
|
Dresdner Bank AG |
574,050 |
26,137,130 |
|
Heidelberger Zement AG (Frankfurt) |
54,000 |
2,832,847 |
|
Karstadt Quelle AG |
702,620 |
21,792,822 |
|
Parsytec AG |
18,500 |
622,060 |
|
SAP AG |
183,620 |
29,079,018 |
|
TOTAL GERMANY |
143,566,809 |
||
Greece - 0.4% |
|||
Antenna TV SA sponsored ADR (a) |
350,900 |
5,628,436 |
|
Ireland - 0.6% |
|||
IAWS Group PLC (Ireland) |
658,900 |
4,092,033 |
|
|
|||
Shares |
Value (Note 1) |
||
IWP International PLC (United Kingdom) (Reg.) |
568,270 |
$ 935,174 |
|
Riverdeep Group PLC sponsored ADR (a) |
79,500 |
2,035,200 |
|
TOTAL IRELAND |
7,062,407 |
||
Italy - 6.1% |
|||
Fila Holding Spa sponsored ADR (a) |
576,000 |
2,966,400 |
|
Luxottica Group Spa sponsored ADR |
2,253,170 |
33,504,638 |
|
Mediobanca Spa |
961,130 |
10,605,211 |
|
Saipem Spa |
3,513,530 |
23,042,371 |
|
Unicredito Italiano Spa |
2,112,200 |
9,924,407 |
|
TOTAL ITALY |
80,043,027 |
||
Luxembourg - 1.0% |
|||
Gemplus International SA |
2,058,520 |
8,912,436 |
|
Stolt Offshore SA (a) |
291,300 |
4,034,670 |
|
TOTAL LUXEMBOURG |
12,947,106 |
||
Netherlands - 6.2% |
|||
ASM Lithography Holding NV (a) |
965,470 |
25,525,637 |
|
Buhrmann NV |
876,150 |
14,528,116 |
|
Heineken Holding NV (A Shares) |
184,250 |
7,078,104 |
|
IHC Caland NV |
117,300 |
5,411,565 |
|
Royal Dutch Petroleum Co. (Hague Registry) |
485,440 |
28,922,513 |
|
TOTAL NETHERLANDS |
81,465,935 |
||
Norway - 0.8% |
|||
DnB Holding ASA |
2,218,220 |
9,753,526 |
|
Poland - 0.3% |
|||
Agora SA unit (a) |
263,280 |
4,383,612 |
|
Russia - 0.5% |
|||
Sun Interbrew Ltd. unit (a) |
46,100 |
132,307 |
|
Unified Energy Systems sponsored ADR |
245,300 |
2,636,975 |
|
YUKOS Corp. sponsored ADR (a) |
70,600 |
3,035,800 |
|
TOTAL RUSSIA |
5,805,082 |
||
Spain - 4.6% |
|||
Banco Popular Espanol SA (Reg.) |
303,610 |
10,839,159 |
|
Centros Comerciales Carrefour SA |
1,691,810 |
25,501,545 |
|
NH Hoteles SA |
1,821,540 |
24,224,894 |
|
TOTAL SPAIN |
60,565,598 |
||
Sweden - 2.0% |
|||
Industri-Matematik International Corp. (a) |
1,078,780 |
1,423,990 |
|
Nobel Biocare AB |
353,560 |
13,443,346 |
|
Skandia Foersaekrings AB |
1,005,430 |
10,929,652 |
|
Tele1 Europe Holding AB |
214,400 |
806,848 |
|
TOTAL SWEDEN |
26,603,836 |
||
Switzerland - 5.6% |
|||
Fantastic Corp. (a) |
267,570 |
401,186 |
|
Geberit International AG |
14,450 |
3,780,499 |
|
Kudelski SA (Bearer) (a) |
10,334 |
9,826,024 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
Switzerland - continued |
|||
Leica Geosystems AG |
470 |
$ 128,246 |
|
Lindt & Spruengli AG |
22,614 |
11,363,688 |
|
Novartis AG (Reg.) |
12,671 |
19,685,942 |
|
Pargesa Holding SA |
962 |
2,175,352 |
|
Tecan Group AG |
13,193 |
12,582,502 |
|
Zurich Financial Services AG |
37,144 |
13,206,851 |
|
TOTAL SWITZERLAND |
73,150,290 |
||
United Kingdom - 20.8% |
|||
Amdocs Ltd. (a) |
238,200 |
14,029,980 |
|
Axis Shield PLC (a) |
908,083 |
4,158,294 |
|
BP Amoco PLC |
4,961,607 |
44,720,649 |
|
Cable & Wireless PLC |
1,685,720 |
12,386,982 |
|
Capita Group PLC |
2,924,855 |
20,697,137 |
|
Corus Group PLC |
12,507,880 |
12,797,625 |
|
E-Capital Investments PLC (a) |
8,303,450 |
350,526 |
|
EGG PLC |
6,185,500 |
14,233,132 |
|
Expro International Group PLC |
582,630 |
4,335,466 |
|
FirstGroup PLC |
1,087,300 |
4,481,068 |
|
GlaxoSmithKline PLC (a) |
723,360 |
19,375,198 |
|
Great Universal Stores PLC Class A |
1,578,834 |
12,188,985 |
|
Marconi PLC |
1,357,780 |
7,956,516 |
|
NDS Group PLC sponsored ADR (a) |
344,700 |
12,926,250 |
|
Prudential PLC |
1,567,873 |
18,352,863 |
|
Serco Group PLC |
3,235,172 |
18,286,648 |
|
Stanley Leisure PLC |
795,000 |
2,798,607 |
|
Vodafone Group PLC |
15,532,077 |
47,124,418 |
|
TOTAL UNITED KINGDOM |
271,200,344 |
||
United States of America - 3.5% |
|||
Infonet Services Corp. Class B (a) |
1,820,870 |
12,928,177 |
|
Lafarge Corp. |
129,500 |
4,370,625 |
|
Synthes-Stratec, Inc. (f) |
12,000 |
7,155,709 |
|
Synthes-Stratec, Inc. |
36,091 |
21,505,269 |
|
TOTAL UNITED STATES OF AMERICA |
45,959,780 |
||
TOTAL COMMON STOCKS (Cost $1,116,675,251) |
1,148,965,108 |
||
Nonconvertible Preferred Stocks - 5.5% |
|||
|
|
|
|
Germany - 4.8% |
|||
Dyckerhoff AG |
89,200 |
1,605,715 |
|
Marschollek Lautenschlaeger |
510,924 |
55,528,239 |
|
SAP AG |
31,300 |
5,045,560 |
|
TOTAL GERMANY |
62,179,514 |
||
Italy - 0.7% |
|||
Alleanza Assicurazioni Spa Risp |
1,246,610 |
9,527,018 |
|
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $47,712,739) |
71,706,532 |
Corporate Bonds - 2.3% |
|||||
Moody's Ratings (unaudited) (b) |
Principal Amount (d) |
Value |
|||
Convertible Bonds - 1.1% |
|||||
Germany - 0.5% |
|||||
Holzmann (Phillip) AG 3.25% 12/8/03 |
- |
DEM |
22,670,000 |
$ 7,043,886 |
|
United Kingdom - 0.6% |
|||||
BP Finance PLC: |
|
|
|
|
|
(LukeOil) 3% 2/9/06 (f) |
AA+ |
|
2,535,000 |
2,839,200 |
|
3% 2/9/06 |
Aa1 |
|
4,055,000 |
4,541,600 |
|
TOTAL UNITED KINGDOM |
7,380,800 |
||||
TOTAL CONVERTIBLE BONDS |
14,424,686 |
||||
Nonconvertible Bonds - 1.2% |
|||||
France - 0.5% |
|||||
Eurotunnel Finance Ltd. euro: |
|
|
|
|
|
0% 4/30/40 (g) |
- |
EUR |
1,395 |
1,685,337 |
|
0% 4/30/40 (g) |
- |
EUR |
4,020 |
4,856,670 |
|
TOTAL FRANCE |
6,542,007 |
||||
United Kingdom - 0.7% |
|||||
Credit Linked & Structured Securities Ltd. euro: |
|
|
|
|
|
5.14% 12/31/50 (g) |
- |
FRF |
66,000,000 |
3,258,047 |
|
6.89% 12/31/50 (g) |
- |
GBP |
12,000,000 |
6,439,500 |
|
TOTAL UNITED KINGDOM |
9,697,547 |
||||
TOTAL NONCONVERTIBLE BONDS |
16,239,554 |
||||
TOTAL CORPORATE BONDS (Cost $33,144,943) |
30,664,240 |
Cash Equivalents - 13.2% |
|||
Shares |
|
||
Fidelity Cash Central Fund, 4.70% (c) |
43,202,924 |
43,202,924 |
|
Fidelity Securities Lending |
129,298,150 |
129,298,150 |
|
TOTAL CASH EQUIVALENTS (Cost $172,501,074) |
172,501,074 |
||
TOTAL INVESTMENT PORTFOLIO - 108.9% (Cost $1,370,034,007) |
1,423,836,954 |
||
NET OTHER ASSETS - (8.9)% |
(116,010,893) |
||
NET ASSETS - 100% |
$ 1,307,826,061 |
Currency Abbreviations |
||
DEM |
- |
German deutsche mark |
EUR |
- |
European Monetary Unit |
FRF |
- |
French franc |
GBP |
- |
British pound |
Legend |
(a) Non-income producing |
(b) S&P credit ratings are used in the absence of a rating by Moody's Investors Service, Inc. |
(c) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(d) Principal amount is stated in United States dollars unless otherwise noted. |
(e) Affiliated company |
(f) 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 $9,994,909 or 0.8% of net assets. |
(g) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $806,487,659 and $822,402,672, respectively. |
The fund participated in the security lending program during the period. |
At period end the fund received as collateral U.S. Treasury obligations |
The fund participated in the interfund lending program as a borrower. The average daily loan balance during the period for which loans were outstanding amounted to $6,509,000. The weighted average interest rate was 5.61%. |
Transactions during the period with companies which are or were affiliates are as follows: |
Affiliate |
|
Purchase |
|
Sales |
|
Dividend |
|
Value |
TRANSGENE SA |
|
$ - |
|
$ - |
|
$ - |
|
$ 1,224,110 |
Income Tax Information |
At April 30, 2001, the aggregate cost of investment securities for income tax purposes was $1,373,053,981. Net unrealized appreciation aggregated $50,782,973, of which $198,282,496 related to appreciated investment securities and $147,499,523 related to depreciated investment securities. |
At October 31, 2000, the fund had a capital loss carryforward of approximately $252,000 all of which will expire on October 31, 2006. |
All of the capital loss carryforward was acquired in the merger of Fidelity Germany Fund and is available to offset future capital gains of the fund to the extent provided by regulations (See Note 12 of the Notes to Financial Statements). |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Europe
Statement of Assets and Liabilities
|
April 30, 2001 (Unaudited) |
|
Assets |
|
|
Investment in securities, at value (including securities loaned of $129,506,626) (cost $1,370,034,007) - See accompanying schedule |
|
$ 1,423,836,954 |
Receivable for investments sold |
|
8,620,639 |
Receivable for fund shares sold |
|
2,792,472 |
Dividends receivable |
|
3,870,068 |
Interest receivable |
|
695,822 |
Redemption fees receivable |
|
14 |
Other receivables |
|
155,063 |
Total assets |
|
1,439,971,032 |
Liabilities |
|
|
Payable for investments purchased |
$ 76,202 |
|
Payable for fund shares redeemed |
1,593,696 |
|
Accrued management fee |
693,180 |
|
Other payables and |
483,743 |
|
Collateral on securities loaned, |
129,298,150 |
|
Total liabilities |
|
132,144,971 |
Net Assets |
|
$ 1,307,826,061 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 1,330,029,253 |
Distributions in excess of |
|
(1,033,462) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
(74,773,935) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies |
|
53,604,205 |
Net Assets, for 47,475,061 |
|
$ 1,307,826,061 |
Net Asset Value, offering price and redemption price per share ($1,307,826,061 ÷ 47,475,061 shares) |
|
$27.55 |
Statement of Operations
|
Six months ended April 30, 2001 (Unaudited) |
|
Investment Income Dividends |
|
$ 4,986,897 |
Interest |
|
1,658,485 |
Security lending |
|
410,410 |
|
|
7,055,792 |
Less foreign taxes withheld |
|
(802,341) |
Total income |
|
6,253,451 |
Expenses |
|
|
Management fee |
$ 4,868,813 |
|
Performance adjustment |
(537,428) |
|
Transfer agent fees |
1,703,360 |
|
Accounting and security lending fees |
337,522 |
|
Non-interested |
1,868 |
|
Custodian fees and expenses |
310,232 |
|
Registration fees |
22,814 |
|
Audit |
17,172 |
|
Legal |
3,675 |
|
Interest |
4,055 |
|
Reports to shareholders |
41,329 |
|
Miscellaneous |
322 |
|
Total expenses before reductions |
6,773,734 |
|
Expense reductions |
(207,049) |
6,566,685 |
Net investment income (loss) |
|
(313,234) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities |
(72,152,461) |
|
Foreign currency transactions |
188,821 |
(71,963,640) |
Change in net unrealized appreciation (depreciation) on: |
|
|
Investment securities |
(66,478,788) |
|
Assets and liabilities in |
42,481 |
(66,436,307) |
Net gain (loss) |
|
(138,399,947) |
Net increase (decrease) in net assets resulting from operations |
|
$ (138,713,181) |
Other Information |
|
|
Deferred sales charges |
|
$ 10,837 |
Expense Reductions |
|
$ 179,309 |
Custodian credits |
|
41 |
Transfer agent credits |
|
27,699 |
|
|
$ 207,049 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Europe
Financial Statements - continued
Statement of Changes in Net Assets
Increase (Decrease) in Net Assets |
Six months ended |
Year ended |
Operations |
$ (313,234) |
$ 8,229,269 |
Net realized gain (loss) |
(71,963,640) |
213,224,939 |
Change in net unrealized appreciation (depreciation) |
(66,436,307) |
(118,352,239) |
Net increase (decrease) in net assets resulting from operations |
(138,713,181) |
103,101,969 |
Distributions to shareholders |
(4,211,634) |
(6,915,223) |
In excess of net investment income |
(720,228) |
- |
From net realized gain |
(168,063,193) |
(74,504,729) |
Total distributions |
(172,995,055) |
(81,419,952) |
Share transactions |
227,533,678 |
475,580,031 |
Net asset value of shares issued in exchange for the net assets of Fidelity France Fund, |
- |
62,774,350 |
Reinvestment of distributions |
168,108,243 |
79,434,126 |
Cost of shares redeemed |
(201,312,065) |
(532,039,104) |
Net increase (decrease) in net assets resulting from share transactions |
194,329,856 |
85,749,403 |
Redemption fees |
111,950 |
258,937 |
Total increase (decrease) in net assets |
(117,266,430) |
107,690,357 |
Net Assets |
|
|
Beginning of period |
1,425,092,491 |
1,317,402,134 |
End of period (including under (over) distribution of net investment income of $(1,033,462) |
$ 1,307,826,061 |
$ 1,425,092,491 |
Other Information |
|
|
Sold |
7,837,531 |
12,610,973 |
Issued in exchange for the shares of Fidelity France Fund, Fidelity Germany Fund and |
- |
1,625,579 |
Issued in reinvestment of distributions |
5,735,525 |
2,266,303 |
Redeemed |
(6,953,065) |
(14,288,890) |
Net increase (decrease) |
6,619,991 |
2,213,965 |
Financial Highlights
|
Six months ended |
Years ended October 31, |
||||
Selected Per-Share Data |
(Unaudited) |
2000 |
1999 |
1998 |
1997 |
1996 |
Net asset value, beginning of period |
$ 34.88 |
$ 34.09 |
$ 32.82 |
$ 31.05 |
$ 27.12 |
$ 23.51 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D |
(.01) |
.20 |
.25 |
.39 |
.44 |
.30 |
Net realized and unrealized gain (loss) |
(3.11) |
2.70 |
3.54 |
4.10 |
5.44 |
4.23 |
Total from investment operations |
(3.12) |
2.90 |
3.79 |
4.49 |
5.88 |
4.53 |
Less Distributions |
(.10) |
(.18) |
(.28) |
(.39) |
(.24) |
(.12) |
In excess of net investment income |
(.02) |
- |
- |
- |
- |
- |
From net realized gain |
(4.09) |
(1.94) |
(2.25) |
(2.35) |
(1.73) |
(.81) |
Total distributions |
(4.21) |
(2.12) |
(2.53) |
(2.74) |
(1.97) |
(.93) |
Redemption fees added to paid in capital |
.00 |
.01 |
.01 |
.02 |
.02 |
.01 |
Net asset value, end of period |
$ 27.55 |
$ 34.88 |
$ 34.09 |
$ 32.82 |
$ 31.05 |
$ 27.12 |
Total Return B, C |
(9.67)% |
8.51% |
12.18% |
15.45% |
23.35% |
20.14% |
Ratios and Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 1,307,826 |
$ 1,425,092 |
$ 1,317,402 |
$ 1,586,358 |
$ 916,108 |
$ 691,762 |
Ratio of expenses to average net assets |
1.04% A |
1.09% |
.96% |
1.10% |
1.19% |
1.27% |
Ratio of expenses to average net assets |
1.01% A, E |
1.05% E |
.89% E |
1.09% E |
1.18% E |
1.27% |
Ratio of net investment income (loss) |
(.05)% A |
.54% |
.76% |
1.15% |
1.53% |
1.20% |
Portfolio turnover rate |
126% A |
144% F |
106% |
114% |
57% |
45% |
A Annualized
B The total returns would have been lower had certain expenses not been reduced during the periods shown.
C Total returns do not include the former one time sales charge and for periods of less than one year are not annualized.
D Net investment income (loss) per share has been calculated based on average shares outstanding during the period.
E FMR or the fund has entered into varying arrangements with third parties who either paid or reduced a portion of the fund's expenses.
F The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
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. Total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value). Total returns do not include the effect of the 3.00% sales load which was eliminated as of March 1, 2000.
Cumulative Total Returns
Periods ended |
Past 6 |
Past 1 |
Past 5 |
Life of |
|
Fidelity |
-5.67% |
-10.38% |
88.98% |
150.65% |
|
MSCI Europe |
-7.04% |
-13.27% |
78.90% |
134.51% |
|
European Region |
-10.16% |
-17.48% |
66.16% |
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 21, 1993. For example, if you had invested $1,000 in a fund that had a 5% return over the past year, the value of your investment would be $1,050. You can compare the fund's returns to the performance of the Morgan Stanley Capital International (MSCI) Europe Index - a market capitalization-weighted index that is designed to represent the performance of developed stock markets in Europe. As of April 30, 2001, the index included over 476 equity securities of companies domiciled in 15 European countries. To measure how the fund's performance stacked up against its peers, you can compare it to the European region funds average, which reflects the performance of mutual funds with similar objectives tracked by Lipper Inc. The past six months average represents a peer group of 174 mutual funds. These benchmarks include reinvested dividends and capital gains, if any, and exclude the effect of sales charges.
Average Annual Total Returns
Periods ended |
Past 1 |
Past 5 |
Life of |
Fidelity Europe Capital App |
-10.38% |
13.57% |
13.29% |
MSCI Europe |
-13.27% |
12.34% |
12.27% |
European Region Funds Average |
-17.48% |
10.47% |
n/a * |
Average annual total returns take the fund's cumulative return and show you what would have happened if the fund had performed at a constant rate each year.
* Not available
$10,000 Over Life of Fund
$10,000 Over Life of Fund: Let's say hypothetically that $10,000 was invested in Fidelity Europe Capital Appreciation Fund on December 21, 1993, when the fund started. As the chart shows, by April 30, 2001, the value of the investment would have grown to $25,065 - a 150.65% increase on the initial investment. For comparison, look at how the Morgan Stanley Capital International Europe Index did over the same period. With dividends and capital gains, if any, reinvested, the same $10,000 would have grown to $23,451 - a 134.51% 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. Past performance is no guarantee of future results and you may have a gain or loss when you sell your shares.
3Semiannual Report
Europe Capital Appreciation
(Portfolio Manager photograph)
An interview with
Ian Hart, Portfolio Manager of Fidelity Europe Capital Appreciation Fund
Q. How did the fund perform, Ian?
A. While its absolute performance was disappointing, the fund outperformed its benchmark and average peer. For the six-month period that ended April 30, 2001, the fund posted a total return of -5.67%. In comparison, the Morgan Stanley Capital International (MSCI) Europe Index returned -7.04%. The fund also compares its performance against the European region funds average, as tracked by Lipper Inc., which returned -10.16% during the same period. For the 12 months that ended April 30, 2001, the fund returned -10.38%, while the MSCI Europe index and Lipper average posted returns of -13.27% and -17.48%, respectively.
Q. What helped the fund outperform its benchmark and peer average?
A. The overall environment during the period was one of high volatility and generally declining valuations in the European markets. That the fund was able to outperform its benchmarks was attributable mainly to favorable stock selection. In particular, several names in the retail sector came through very well. Valuations were extremely low for a number of these stocks, but fundamentals were actually improving, in part due to the reduced threat of online retailers. As evidence of improving fundamentals grew, the stocks appreciated. Performance also was aided somewhat by maintaining generally underweighted positions in the telecommunications, media and technology (TMT) stocks, which suffered a dramatic downturn, although I did not escape the downturn entirely. Negative contributions to performance also came as a result of disappointing stock picking in the financials and industrials groups.
Q. Which individual positions helped performance the most?
A. As I mentioned, there were several names in the retail sector that helped performance. Castorama Dubois, for instance, is a French do-it-yourself retailer - Europe's equivalent of the U.S. chain, Home Depot - which has strengthened its position in this still robust market since merging with the U.K. do-it-yourself business of Kingfisher. Boots, the U.K.'s leading health and personal care products retailer, was selling at a very low price-to-earnings multiple when I bought it, and resilient earnings by the company helped drive its stock price higher. MFI Furniture, another U.K. retailer, enjoyed similar good fortunes. Pernod-Ricard, a French spirits company, performed well after acquiring some of Seagram's assets spun off by Vivendi Universal, one of the fund's top 10 holdings. The fund's largest position, TotalFinaElf, the result of a three-way oil company merger, enjoyed a good deal of market favor in anticipation of its restructuring potential.
Q. What holdings didn't perform up to expectations?
A. Although I tried to underweight the TMT group, I still was hurt by some of the individual positions I retained. In particular, SMG, the Scottish media group, and ILOG, a French software company, fell sharply out of favor during the period. Among the bigger names, I also was hurt by my exposure to mobile telephony stocks, such as Vodafone, the U.K. mobile operator. This stock suffered as its growth rate slowed and investors lost confidence in its longer-term earnings growth potential. I also was reminded that non-TMT stocks could disappoint. A good example was SSL International, a U.K. health care products company, which took a big hit when it issued a profit warning in response to much lower-than-expected sales.
Q. What's your outlook for the next six months, Ian?
A. My sense is that we'll continue to see somewhat more of the same, which is to say that the markets will likely remain quite volatile. In 1999, it was all about being invested in TMT; in 2000, it was pretty much about not being there. But in 2001, I don't think there are any clear sector bets. This is a positive environment for Fidelity's intensive research approach to add value, because I think stock picking is what will differentiate one fund from another and determine which funds will beat their benchmarks over time. That's why it's so important for me to utilize Fidelity's 50-plus analysts based in London, who are working to sort out the good stories and find the new ideas that will add value to the fund.
The views expressed in this report reflect those of the portfolio manager only through the end of the period of the report as stated on the cover. The manager's views are subject to change at any time based on market or other conditions. For more information, see page 3.
Fund Facts
Goal: long-term capital appreciation by investing mainly in equity securities of European issuers
Fund number: 341
Trading symbol: FECAX
Start date: December 21, 1993
Size: as of April 30, 2001, more than $508 million
Manager: Ian Hart, since 2000; international equity analyst, 1997-2000; European equity analyst in U.K., 1994-1997; joined Fidelity in 1994
3Semiannual Report
Europe Capital Appreciation
Geographic Diversification (% of fund's net assets) |
|||
As of April 30, 2001 |
|||
United Kingdom |
23.0% |
|
|
France |
21.5% |
|
|
Germany |
11.1% |
|
|
Netherlands |
10.5% |
|
|
United States of America |
6.6% |
|
|
Italy |
6.6% |
|
|
Switzerland |
6.5% |
|
|
Spain |
5.1% |
|
|
Finland |
2.2% |
|
|
Other |
6.9% |
|
As of October 31, 2000 |
|||
United Kingdom |
25.1% |
|
|
France |
21.4% |
|
|
Netherlands |
10.9% |
|
|
Switzerland |
9.3% |
|
|
Germany |
8.7% |
|
|
Spain |
5.6% |
|
|
Italy |
5.6% |
|
|
Finland |
3.8% |
|
|
United States of America |
2.1% |
|
|
Other |
7.5% |
|
Percentages are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation |
||
|
% of fund's |
% of fund's net assets |
Stocks |
93.4 |
98.5 |
Short-Term Investments |
6.6 |
1.5 |
Top Ten Stocks as of April 30, 2001 |
||
|
% of fund's |
% of fund's net assets |
TotalFinaElf SA Series B |
6.6 |
5.0 |
Royal Dutch Petroleum Co. |
4.6 |
3.6 |
Vodafone Group PLC |
3.3 |
4.8 |
BNP Paribas SA (France, Banks) |
3.3 |
1.4 |
Lloyds TSB Group PLC |
2.8 |
2.2 |
Nokia AB (Finland, Communications Equipment) |
2.2 |
3.3 |
Vivendi Universal SA |
2.0 |
1.2 |
GlaxoSmithKline PLC (United Kingdom, Pharmaceuticals) |
1.9 |
1.3 |
SEB SA |
1.6 |
0.0 |
Altadis SA (Spain, Tobacco) |
1.6 |
0.9 |
|
29.9 |
|
Market Sectors as of April 30, 2001 |
||
|
% of fund's |
% of fund's net assets |
Financials |
22.9 |
26.5 |
Consumer Discretionary |
18.6 |
17.0 |
Energy |
12.9 |
9.0 |
Consumer Staples |
11.6 |
11.7 |
Health Care |
9.7 |
8.8 |
Information Technology |
6.7 |
10.4 |
Telecommunication Services |
6.3 |
10.5 |
Industrials |
3.4 |
2.0 |
Utilities |
1.0 |
2.1 |
Materials |
0.3 |
0.5 |
Effective with this report, industry classifications follow the MSCI/S&P Global Industry Classification Standard. This replaces the U.S. Standard Industrial Classification system that is being phased out. Prior period industry percentages reflect the new standard. |
Semiannual Report
Europe Capital Appreciation
(Unaudited)
Showing Percentage of Net Assets
Common Stocks - 92.4% |
|||
Shares |
Value (Note 1) |
||
Austria - 0.8% |
|||
OMV AG |
34,900 |
$ 2,941,512 |
|
Plaut AG (a) |
125,900 |
893,588 |
|
TOTAL AUSTRIA |
3,835,100 |
||
Belgium - 1.2% |
|||
Delhaize Freres & Compagnie Le Lion SA |
68,000 |
3,610,727 |
|
KBC Bancassurance Holding NV |
67,100 |
2,486,615 |
|
TOTAL BELGIUM |
6,097,342 |
||
Denmark - 1.1% |
|||
Bang & Olufsen Holding AS Series B |
73,680 |
2,408,029 |
|
Novo-Nordisk AS Series B |
81,000 |
3,080,452 |
|
TOTAL DENMARK |
5,488,481 |
||
Finland - 2.2% |
|||
Nokia AB |
330,400 |
11,296,376 |
|
France - 21.5% |
|||
Alcatel SA (RFD) |
108,560 |
3,523,858 |
|
Aventis SA (France) |
65,797 |
5,059,790 |
|
AXA SA de CV |
36,598 |
4,318,476 |
|
BNP Paribas SA |
189,400 |
16,837,175 |
|
Castorama Dubois Investissements SA |
8,355 |
1,786,426 |
|
Europeene de Casinos SA |
16,800 |
1,459,941 |
|
Groupe Partouche |
4,849 |
296,410 |
|
ILOG SA sponsored ADR (a) |
151,900 |
2,263,310 |
|
Pernod-Ricard |
82,414 |
5,714,148 |
|
Royal Canin SA |
30,215 |
2,948,742 |
|
Sanofi-Synthelabo SA |
77,100 |
4,624,051 |
|
SEB SA |
150,400 |
8,206,245 |
|
TotalFinaElf SA Series B |
224,900 |
33,609,058 |
|
Valeo SA |
85,000 |
3,921,424 |
|
Vivendi Environment |
110,600 |
4,843,416 |
|
Vivendi Universal SA |
144,943 |
10,036,717 |
|
TOTAL FRANCE |
109,449,187 |
||
Germany - 10.1% |
|||
Allianz AG (Reg. D) |
20,071 |
5,778,369 |
|
Deutsche Boerse AG |
5,789 |
1,856,664 |
|
Deutsche Lufthansa AG (Reg.) |
292,300 |
5,601,497 |
|
Douglas Holding AG |
88,316 |
2,875,590 |
|
FAG Kugelfischer Georg Schaefer AG |
218,300 |
1,500,987 |
|
Fresenius Medical Care AG |
61,200 |
4,539,199 |
|
Gehe AG |
94,200 |
3,760,841 |
|
Karstadt Quelle AG |
192,700 |
5,976,882 |
|
Muenchener Rueckversicherungs-Gesellschaft AG (Reg.) |
27,707 |
7,900,051 |
|
Schering AG (a) |
70,100 |
3,500,828 |
|
Software AG (Reg. D) |
41,200 |
2,412,474 |
|
United Internet AG (a) |
73,000 |
195,592 |
|
|
|||
Shares |
Value (Note 1) |
||
Wella AG |
100,835 |
$ 3,802,085 |
|
Zapf Creation AG |
45,000 |
1,525,097 |
|
TOTAL GERMANY |
51,226,156 |
||
Greece - 0.4% |
|||
Antenna TV SA sponsored ADR (a) |
119,600 |
1,918,384 |
|
Israel - 0.2% |
|||
Orad Hi-Tech Systems Ltd. (a) |
191,782 |
1,105,968 |
|
Italy - 6.6% |
|||
Alleanza Assicurazioni Spa |
398,200 |
5,050,534 |
|
Banca Intesa Spa |
1,723,800 |
6,505,878 |
|
Banca Nazionale del Lavoro (BNL) |
1,833,800 |
5,832,606 |
|
Saipem Spa |
839,400 |
5,504,938 |
|
Telecom Italia Mobile Spa |
835,300 |
5,735,945 |
|
Telecom Italia Spa |
450,900 |
4,999,281 |
|
TOTAL ITALY |
33,629,182 |
||
Netherlands - 10.5% |
|||
Hunter Douglas NV |
83,500 |
2,215,028 |
|
ICT Automatisering NV |
21,502 |
839,369 |
|
ING Groep NV |
85,049 |
5,807,808 |
|
Koninklijke Ahold NV |
254,330 |
7,897,455 |
|
Koninklijke KPN NV |
155,700 |
1,903,528 |
|
Koninklijke Philips Electronics NV |
100,086 |
2,940,045 |
|
Numico NV |
142,300 |
5,629,423 |
|
Randstad Holdings NV |
120,000 |
1,293,538 |
|
Royal Dutch Petroleum Co. |
390,600 |
23,271,946 |
|
STMicroelectronics NV (NY Shares) |
37,100 |
1,500,695 |
|
TOTAL NETHERLANDS |
53,298,835 |
||
Norway - 1.4% |
|||
Norsk Hydro AS |
111,500 |
4,865,891 |
|
Tandberg ASA (a) |
195,500 |
2,406,921 |
|
TOTAL NORWAY |
7,272,812 |
||
Spain - 5.1% |
|||
Aldeasa SA |
59,500 |
1,187,739 |
|
Altadis SA |
640,100 |
7,950,554 |
|
Banco Santander Central Hispano SA |
719,800 |
7,152,393 |
|
Corporacion Mapfre Compania Internacional de Reaseguros SA (Reg.) |
152,700 |
3,022,457 |
|
Cortefiel SA |
136,400 |
2,093,544 |
|
Sol Melia SA |
170,500 |
1,606,462 |
|
Telefonica SA |
158,964 |
2,690,907 |
|
TOTAL SPAIN |
25,704,056 |
||
Sweden - 1.8% |
|||
Bilia AB (A Shares) |
150,000 |
899,386 |
|
Electrolux AB (B Shares) |
189,900 |
3,138,154 |
|
Telefonaktiebolaget LM Ericsson AB |
829,572 |
5,342,444 |
|
TOTAL SWEDEN |
9,379,984 |
||
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
Switzerland - 6.5% |
|||
Credit Suisse Group (Reg.) |
30,387 |
$ 5,664,839 |
|
Nestle SA (Reg.) |
2,168 |
4,487,671 |
|
Novartis AG (Reg.) |
4,738 |
7,361,060 |
|
The Swatch Group AG (Bearer) |
1,986 |
2,198,528 |
|
UBS AG (Reg. D) |
51,249 |
7,796,771 |
|
Zurich Financial Services AG |
15,576 |
5,538,173 |
|
TOTAL SWITZERLAND |
33,047,042 |
||
United Kingdom - 23.0% |
|||
AstraZeneca PLC (United Kingdom) |
106,000 |
5,037,120 |
|
Barclays PLC |
147,500 |
4,749,131 |
|
Boots Co. PLC |
663,580 |
5,863,675 |
|
British Land Co. PLC |
825,952 |
5,507,828 |
|
Carlton Communications PLC |
1,131,700 |
6,915,106 |
|
Diageo PLC |
561,500 |
5,905,773 |
|
EMAP PLC |
250,000 |
2,972,903 |
|
GlaxoSmithKline PLC (a) |
358,429 |
9,600,521 |
|
Lloyds TSB Group PLC |
1,366,100 |
14,202,269 |
|
Lonmin PLC |
113,700 |
1,573,354 |
|
Marks & Spencer PLC |
1,442,400 |
5,531,719 |
|
MFI Furniture Group PLC |
1,966,800 |
3,121,270 |
|
Rank Group PLC Class L |
1,006,200 |
2,735,757 |
|
Senior Engineering Group PLC |
1,886,400 |
1,633,160 |
|
SMG PLC |
2,008,601 |
5,607,488 |
|
Somerfield PLC |
4,014,700 |
5,472,147 |
|
SSL International PLC |
365,500 |
2,395,480 |
|
Tomkins PLC |
598,300 |
1,339,902 |
|
Trinity Mirror PLC |
1,040,100 |
6,924,405 |
|
Vodafone Group PLC |
5,565,791 |
16,886,644 |
|
W.H. Smith PLC |
373,500 |
2,626,962 |
|
TOTAL UNITED KINGDOM |
116,602,614 |
||
United States of America - 0.0% |
|||
Jupiter Media Metrix, Inc. (a) |
104,600 |
156,900 |
|
Reliant Resources, Inc. |
2,000 |
60,000 |
|
TOTAL UNITED STATES OF AMERICA |
216,900 |
||
TOTAL COMMON STOCKS (Cost $444,841,637) |
469,568,419 |
||
Nonconvertible Preferred Stocks - 1.0% |
|||
Shares |
Value (Note 1) |
||
Germany - 1.0% |
|||
ProSieben Sat.1 Media AG |
91,600 |
$ 1,629,414 |
|
SAP AG |
19,900 |
3,207,880 |
|
TOTAL NONCONVERTIBLE (Cost $5,724,182) |
4,837,294 |
||
Cash Equivalents - 29.2% |
|||
Fidelity Cash Central Fund, 4.70% (b) |
31,706,684 |
31,706,684 |
|
Fidelity Securities Lending |
116,686,992 |
116,686,992 |
|
TOTAL CASH EQUIVALENTS (Cost $148,393,676) |
148,393,676 |
||
TOTAL INVESTMENT PORTFOLIO - 122.6% (Cost $598,959,495) |
622,799,389 |
||
NET OTHER ASSETS - (22.6)% |
(114,742,218) |
||
NET ASSETS - 100% |
$ 508,057,171 |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $167,388,879 and $290,994,891, respectively. |
Income Tax Information |
At April 30, 2001, the aggregate cost of investment securities for income tax purposes was $600,270,064. Net unrealized appreciation aggregated $22,529,325, of which $64,143,322 related to appreciated investment securities and $41,613,997 related to depreciated investment securities. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Europe Capital Appreciation
Statement of Assets and Liabilities
|
April 30, 2001 (Unaudited) |
|
Assets |
|
|
Investment in securities, |
|
$ 622,799,389 |
Foreign currency held at value |
|
104 |
Receivable for investments sold |
|
4,780,490 |
Receivable for fund shares sold |
|
232,506 |
Dividends receivable |
|
1,793,379 |
Interest receivable |
|
113,182 |
Redemption fees receivable |
|
261 |
Other receivables |
|
78,321 |
Total assets |
|
629,797,632 |
Liabilities |
|
|
Payable for investments purchased |
$ 3,590,935 |
|
Payable for fund shares redeemed |
878,160 |
|
Accrued management fee |
348,260 |
|
Other payables and |
236,114 |
|
Collateral on securities loaned, |
116,686,992 |
|
Total liabilities |
|
121,740,461 |
Net Assets |
|
$ 508,057,171 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 490,575,611 |
Undistributed net investment income |
|
163,252 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
(6,451,594) |
Net unrealized appreciation (depreciation) on investments |
|
23,769,902 |
Net Assets, for 28,981,582 shares outstanding |
|
$ 508,057,171 |
Net Asset Value, offering price |
|
$17.53 |
Statement of Operations
|
Six months ended April 30, 2001 (Unaudited) |
|
Investment Income Dividends |
|
$ 3,425,697 |
Interest |
|
900,125 |
Security lending |
|
184,909 |
|
|
4,510,731 |
Less foreign taxes withheld |
|
(637,456) |
Total income |
|
3,873,275 |
Expenses |
|
|
Management fee |
$ 2,074,318 |
|
Performance adjustment |
258,622 |
|
Transfer agent fees |
679,633 |
|
Accounting and security lending fees |
166,762 |
|
Non-interested trustees' compensation |
1,077 |
|
Custodian fees and expenses |
143,021 |
|
Registration fees |
42,220 |
|
Audit |
23,518 |
|
Legal |
1,641 |
|
Reports to shareholders |
17,509 |
|
Miscellaneous |
2,123 |
|
Total expenses before reductions |
3,410,444 |
|
Expense reductions |
(38,936) |
3,371,508 |
Net investment income |
|
501,767 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities |
(4,907,707) |
|
Foreign currency transactions |
(34,759) |
(4,942,466) |
Change in net unrealized appreciation (depreciation) on: |
|
|
Investment securities |
(30,636,214) |
|
Assets and liabilities in |
28,132 |
(30,608,082) |
Net gain (loss) |
|
(35,550,548) |
Net increase (decrease) in net assets resulting from operations |
|
$ (35,048,781) |
Other Information |
|
|
Expense reductions |
|
|
Directed brokerage arrangements |
|
$ 33,954 |
Custody credits |
|
483 |
Transfer agent credits |
|
4,499 |
|
|
$ 38,936 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Europe Capital Appreciation
Financial Statements - continued
Statement of Changes in Net Assets
Increase (Decrease) in Net Assets |
Six months ended |
Year ended
October 31, |
Operations |
$ 501,767 |
$ 5,198,862 |
Net realized gain (loss) |
(4,942,466) |
41,603,335 |
Change in net unrealized appreciation (depreciation) |
(30,608,082) |
(22,845,159) |
Net increase (decrease) in net assets resulting from operations |
(35,048,781) |
23,957,038 |
Distributions to shareholders |
(3,365,523) |
(4,070,674) |
From net realized gain |
(26,617,810) |
(14,717,039) |
Total distributions |
(29,983,333) |
(18,787,713) |
Share transactions |
57,999,832 |
512,276,940 |
Reinvestment of distributions |
27,917,032 |
18,063,088 |
Cost of shares redeemed |
(156,047,866) |
(367,338,080) |
Net increase (decrease) in net assets resulting from share transactions |
(70,131,002) |
163,001,948 |
Redemption fees |
70,186 |
224,285 |
Total increase (decrease) in net assets |
(135,092,930) |
168,395,558 |
Net Assets |
|
|
Beginning of period |
643,150,101 |
474,754,543 |
End of period (including undistributed net investment income of $163,252 and $4,793,720, respectively) |
$ 508,057,171 |
$ 643,150,101 |
Other Information Shares |
|
|
Sold |
3,133,011 |
24,808,262 |
Issued in reinvestment of distributions |
1,527,190 |
903,170 |
Redeemed |
(8,530,050) |
(18,336,200) |
Net increase (decrease) |
(3,869,849) |
7,375,232 |
Financial Highlights
|
Six months ended |
Years ended October 31, |
||||
Selected Per-Share Data |
(Unaudited) |
2000 |
1999 |
1998 |
1997 |
1996 |
Net asset value, beginning of period |
$ 19.58 |
$ 18.64 |
$ 16.28 |
$ 16.57 |
$ 14.07 |
$ 12.08 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income |
.02 D |
.14 D |
.15 D |
.15 D |
.20 D |
.22 E |
Net realized and unrealized gain (loss) |
(1.09) |
1.39 |
2.20 |
1.79 |
3.81 |
2.00 |
Total from investment operations |
(1.07) |
1.53 |
2.35 |
1.94 |
4.01 |
2.22 |
Less Distributions |
|
|
|
|
|
|
From net investment income |
(.11) |
(.13) |
- |
(.17) |
(.23) |
(.23) |
From net realized gain |
(.87) |
(.47) |
- |
(2.08) |
(1.29) |
- |
Total distributions |
(.98) |
(.60) |
- |
(2.25) |
(1.52) |
(.23) |
Redemption fees added to paid in capital |
.00 |
.01 |
.01 |
.02 |
.01 |
- |
Net asset value, end of period |
$ 17.53 |
$ 19.58 |
$ 18.64 |
$ 16.28 |
$ 16.57 |
$ 14.07 |
Total Return B, C |
(5.67)% |
8.19% |
14.50% |
13.65% |
31.57% |
18.74% |
Ratios and Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 508,112 |
$ 643,150 |
$ 474,755 |
$ 650,807 |
$ 372,049 |
$ 170,192 |
Ratio of expenses to average net assets |
1.23% A |
1.09% |
1.07% |
1.12% |
1.10% |
1.33% |
Ratio of expenses to average net assets |
1.21% A, F |
1.04% F |
.97% F |
1.08% F |
1.07% F |
1.30% F |
Ratio of net investment income to average net assets |
.18% A |
.68% |
.86% |
.89% |
1.33% |
1.66% |
Portfolio turnover rate |
63% A |
156% |
150% |
179% |
189% |
155% |
A Annualized B The total returns would have been lower had certain expenses not been reduced during the periods shown. C Total returns do not include the former one time sales charge and for periods of less than one year are not annualized. D Net investment income per share has been calculated based on average shares outstanding during the period. E Investment income per share reflects a special dividend which amounted to $.04 per share. F FMR or the fund has entered into varying arrangements with third parties who either paid or reduced a portion of the fund's expenses. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
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. Total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value). If Fidelity had not reimbursed certain fund expenses, the life of fund total returns would have been lower.
Cumulative Total Returns
Periods ended |
Past 6 |
Past 1 |
Past 5 |
Life of |
Fidelity Japan |
-17.53% |
-29.20% |
28.94% |
86.31% |
Fidelity Japan |
-20.00% |
-31.33% |
25.07% |
80.72% |
TOPIX |
-12.16% |
-27.01% |
-29.68% |
6.27% |
Japanese Funds Average |
-15.27% |
-32.78% |
-6.05% |
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 September 15, 1992. For example, if you had invested $1,000 in a fund that had a 5% return over the past year, the value of your investment would be $1,050. You can compare the fund's returns to the performance of the Tokyo Stock Exchange Index (TOPIX) - a market capitalization-weighted index of over 1,300 stocks traded in the Japanese market. To measure how the fund's performance stacked up against its peers, you can compare it to the Japanese funds average, which reflects the performance of mutual funds with similar objectives tracked by Lipper Inc. The past six months average represents a peer group of 55 mutual funds. These benchmarks include reinvested dividends and capital gains, if any, and exclude the effect of sales charges.
Average Annual Total Returns
Periods ended |
Past 1 |
Past 5 |
Life of |
Fidelity Japan |
-29.20% |
5.21% |
7.48% |
Fidelity Japan |
-31.33% |
4.58% |
7.10% |
TOPIX |
-27.01% |
-6.80% |
0.71% |
Japanese Funds Average |
-32.78% |
-1.63% |
n/a * |
Average annual total returns take the fund's cumulative return and show you what would have happened if the fund had performed at a constant rate each year.
* Not available
$10,000 Over Life of Fund
$10,000 Over Life of Fund: Let's say hypothetically that $10,000 was invested in Fidelity Japan Fund on September 15, 1992, when the fund started, and the current 3.00% sales charge was paid. As the chart shows, by April 30, 2001, the value of the investment would have grown to $18,072 - an 80.72% increase on the initial investment. For comparison, look at how the Tokyo Stock Exchange Index did over the same period. With dividends and capital gains, if any, reinvested, the same $10,000 would have been $10,627 - a 6.27% 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. Past performance is no guarantee of future results and you may have a gain or loss when you sell your shares.
3Semiannual Report
Japan
(Portfolio Manager photograph)
An interview with
Yoko Ishibashi,
Portfolio Manager of Fidelity Japan Fund
Q. How did the fund perform, Yoko?
A. For the six months that ended April 30, 2001, the fund returned -17.53%, trailing the Tokyo Stock Exchange Index (TOPIX) and the Japan funds average tracked by Lipper Inc., which returned -12.16% and -15.27%, respectively. For the 12 months that ended April 30, 2001, the fund's return was -29.20%, compared with -27.01% for the TOPIX. However, during the same period, the fund's performance was better than the Lipper peer group average, which returned -32.78%.
Q. Why did the fund trail its benchmarks during the six-month period?
A. Concerns about the magnitude of the economic slowdown in the U.S. and the sustainability of profit growth by technology companies were mirrored in Japan. During the past six months, the correction in Japanese technology-related stocks came faster and sharper. The fund's relatively large exposure to technology and telecom equipment makers was the major reason for its underperformance. Those technology-related stocks were sold off across the board on concerns about cyclical downturns in their business fundamentals. The global PC and mobile handset markets have been undergoing an inventory correction, while a sharp cutback in telecom carriers' capital expenditures put the brakes on demand for telecom equipment.
Q. What changes did you make to the fund's positioning?
A. While maintaining overweighted positions in companies that I felt had the strongest long-term growth potential, I trimmed weightings of technology-related stocks whose valuations became extremely rich. Instead, I increased positions in the textile, securities brokerage and banking industries. For textile companies, the worst phase of the inventory cycle seemed to be over. Moreover, their restructuring efforts - with a focus on high-margin, emerging new businesses - started to boost their growth momentum. Valuations of securities firms looked very attractive, as I expected they would benefit from a recovery of the stock market as well as from increasing merger and acquisition activities. Regarding the banks, valuations became more reasonable, and the government made a commitment to address the system's two fundamental problems: bad debt and overexposure to the equity market in the form of cross-shareholding - the practice of two or more companies holding each other's shares as part of a long-term business relationship.
Q. What stocks did well for the fund?
A. Ricoh, a manufacturer of digital copiers and multifunctional printers, was the top contributor. The company enjoyed strong market share gains in the U.S. and strengthened its sales network through an aggressive acquisition strategy. Daiwa Securities and Nikko Securities reflected the rebound in brokerage stocks that I referred to earlier. We also gained by holding Takara, a leading toy company whose fortunes turned around dramatically under the leadership of a newly appointed CEO.
Q. What stocks detracted from performance?
A. Konami, mentioned in the shareholder report six months ago as a positive contributor, was the worst detractor. In January the company announced plans to acquire Japan's leading fitness chain operator. The market was skeptical of the business synergies from the acquisition, and the company's issuance of stock to cover the purchase costs was an additional negative influence. Toyoda Gosei, a maker of light-emitting diodes (LEDs), declined on uncertainty about some patent infringement lawsuits, the announcement of a new entrant into the LED business and slowing growth in the market for cellular handsets, which are the largest source of demand for LED prod-ucts. Another detractor was Furukawa Electric, which experienced withering demand for its fiber-optic and WDM - wave division multiplexing - products as telecom carriers cut back their capital expenditures.
Q. What's your outlook, Yoko?
A. The market decline has provided excellent opportunities to invest in quality companies whose valuations were down by 50% to 60% from their highs and whose stocks were starting to look cheap compared against their long-term growth potential. I remain optimistic about the long-term outlook for Japanese equities, based on positive changes I'm seeing in corporate management priorities and the resulting improvement in earnings growth prospects. Restructuring efforts at Japanese companies increasingly involve comprehensive, strategic rethinking of a company's business portfolio. To facilitate these bottom-up restructuring efforts, the government is planning to implement meaningful legislative and tax reforms. Should the top-down initiatives to facilitate further corporate restructuring succeed, the end result should be very positive.
The views expressed in this report reflect those of the portfolio manager only through the end of the period of the report as stated on the cover. The manager's views are subject to change at any time based on market or other conditions. For more information, see page 3.
Fund Facts
Goal: long-term growth of capital by investing mainly in equity securities of Japanese issuers
Fund number: 350
Trading symbol: FJPNX
Start date: September 15, 1992
Size: as of April 30, 2001, more than
$479 million
Manager: Yoko Ishibashi, since 2000; analyst, various industries, 1994-2000; joined Fidelity in 1994
3Semiannual Report
Japan
Geographic Diversification (% of fund's net assets) |
|||
As of April 30, 2001 |
|||
Japan |
97.2% |
|
|
United States |
2.8% |
|
As of October 31, 2000 |
|||
Japan |
98.9% |
|
|
United States |
1.1% |
|
Percentages are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation |
||
|
% of fund's |
% of fund's net assets |
Stocks |
97.2 |
98.9 |
Short-Term Investments |
2.8 |
1.1 |
Top Ten Stocks as of April 30, 2001 |
||
|
% of fund's |
% of fund's net assets |
NTT DoCoMo, Inc. (Wireless Telecommunication Services) |
4.6 |
5.2 |
Nissan Motor Co. Ltd. (Automobiles) |
4.5 |
2.8 |
Takeda Chemical Industries Ltd. (Pharmaceuticals) |
4.2 |
4.1 |
Konami Corp. (Software) |
3.8 |
5.4 |
Stanley Electric Co. Ltd. |
3.6 |
2.6 |
Toyota Motor Corp. (Automobiles) |
3.3 |
3.6 |
Oki Electric Industry Co. Ltd. (Electronic Equipment & Instruments) |
3.2 |
2.0 |
Sumitomo Mitsui Banking Corp. (Banks) |
3.1 |
2.0 |
Ricoh Co. Ltd. (Office Electronics) |
3.0 |
1.4 |
Nomura Securities Co. Ltd. (Diversified Financials) |
2.9 |
1.7 |
|
36.2 |
|
Market Sectors as of April 30, 2001 |
||
|
% of fund's |
% of fund's net assets |
Consumer Discretionary |
31.0 |
29.2 |
Information Technology |
21.2 |
24.6 |
Financials |
18.0 |
10.8 |
Materials |
8.5 |
4.5 |
Telecommunication Services |
7.3 |
7.9 |
Health Care |
6.0 |
5.3 |
Industrials |
3.2 |
14.4 |
Consumer Staples |
2.0 |
2.2 |
Effective with this report, industry classifications follow the MSCI/S&P Global Industry Classification Standard. This replaces the U.S. Standard Industrial Classification system that is being phased out. Prior period industry percentages reflect the new standard. |
Semiannual Report
Japan
(Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.2% |
|||
Shares |
Value (Note 1) |
||
CONSUMER DISCRETIONARY - 31.0% |
|||
Auto Components - 6.8% |
|||
NGK Spark Plug Co. Ltd. |
995,000 |
$ 13,317,484 |
|
NOK Corp. |
217,000 |
1,646,192 |
|
Stanley Electric Co. Ltd. |
1,793,000 |
17,189,916 |
|
Toyoda Gosei Co. Ltd. |
22,000 |
467,306 |
|
|
32,620,898 |
||
Automobiles - 10.0% |
|||
Fuji Heavy Industries Ltd. |
1,327,000 |
9,783,845 |
|
Honda Motor Co. Ltd. (a) |
19,000 |
781,945 |
|
Nissan Motor Co. Ltd. (a) |
3,144,000 |
21,839,611 |
|
Toyota Motor Corp. |
466,400 |
15,720,969 |
|
|
48,126,370 |
||
Household Durables - 5.3% |
|||
Pioneer Corp. |
224,000 |
6,778,808 |
|
Sanyo Electric Co. Ltd. |
1,202,000 |
7,531,419 |
|
Sony Corp. |
145,600 |
11,160,239 |
|
|
25,470,466 |
||
Leisure Equipment & Products - 4.5% |
|||
Bandai Co. Ltd. (a) |
243,500 |
8,427,337 |
|
Konica Corp. (a) |
280,000 |
1,942,707 |
|
Nintendo Co. Ltd. |
38,600 |
6,299,692 |
|
Takara Co. Ltd. (a) |
541,000 |
4,747,446 |
|
|
21,417,182 |
||
Multiline Retail - 0.1% |
|||
Don Quijote Co. Ltd. |
4,500 |
343,591 |
|
Ryohin Keikaku Co. Ltd. |
12,700 |
347,880 |
|
|
691,471 |
||
Specialty Retail - 2.4% |
|||
Macnica, Inc. |
12,800 |
839,806 |
|
Shimamura Co. Ltd. |
7,300 |
428,063 |
|
Yamada Denki Co. Ltd. |
124,400 |
10,345,162 |
|
|
11,613,031 |
||
Textiles & Apparel - 1.9% |
|||
Fast Retailing Co. Ltd. |
2,800 |
612,435 |
|
Toyobo Co. Ltd. |
3,387,000 |
7,861,051 |
|
World Co. Ltd. |
17,100 |
495,051 |
|
|
8,968,537 |
||
TOTAL CONSUMER DISCRETIONARY |
148,907,955 |
||
CONSUMER STAPLES - 2.0% |
|||
Beverages - 0.1% |
|||
Ito En Ltd. |
7,000 |
433,435 |
|
Food & Drug Retailing - 0.5% |
|||
Seven Eleven Japan Co. Ltd. |
48,000 |
2,365,891 |
|
Food Products - 1.4% |
|||
Meiji Seika Kaisha Ltd. |
1,210,000 |
6,698,354 |
|
TOTAL CONSUMER STAPLES |
9,497,680 |
||
|
|||
Shares |
Value (Note 1) |
||
FINANCIALS - 18.0% |
|||
Banks - 5.9% |
|||
Mitsubishi Tokyo Financial Group, Inc. |
276 |
$ 2,842,800 |
|
Mizuho Holdings, Inc. |
1,254 |
7,826,384 |
|
Sumitomo Mitsui Banking Corp. |
1,547,600 |
14,646,825 |
|
The Suruga Bank Ltd. |
282,000 |
2,081,472 |
|
UFJ Holdings, Inc. (a) |
122 |
889,489 |
|
|
28,286,970 |
||
Diversified Financials - 10.1% |
|||
Daiwa Securities Group, Inc. |
1,187,000 |
13,628,781 |
|
JAFCO Co. Ltd. |
40,100 |
4,794,914 |
|
Nikko Securities Co. Ltd. |
735,000 |
6,329,299 |
|
Nomura Securities Co. Ltd. |
642,000 |
13,742,144 |
|
ORIX Corp. |
18,600 |
1,645,938 |
|
Sumitomo Trust & Banking Ltd. |
1,248,000 |
8,587,278 |
|
|
48,728,354 |
||
Real Estate - 2.0% |
|||
Mitsubishi Estate Co. Ltd. (a) |
513,000 |
5,254,831 |
|
Mitsui Fudosan Co. Ltd. |
434,000 |
4,360,184 |
|
|
9,615,015 |
||
TOTAL FINANCIALS |
86,630,339 |
||
HEALTH CARE - 6.0% |
|||
Pharmaceuticals - 6.0% |
|||
Banyu Pharmaceutical Co. Ltd. |
165,000 |
3,078,536 |
|
Hokuriku Seiyaku Co. Ltd. |
209,000 |
4,585,102 |
|
Takeda Chemical Industries Ltd. |
416,000 |
20,333,800 |
|
Yamanouchi Pharmaceutical Co. Ltd. |
29,000 |
813,398 |
|
|
28,810,836 |
||
INDUSTRIALS - 3.2% |
|||
Building Products - 1.1% |
|||
Nippon Sheet Glass Co. Ltd. |
68,000 |
674,797 |
|
Toto Ltd. |
593,000 |
4,503,443 |
|
|
5,178,240 |
||
Commercial Services & Supplies - 0.1% |
|||
Capcom Co. Ltd. |
21,300 |
669,048 |
|
Construction & Engineering - 0.1% |
|||
HUNET, Inc. |
121,000 |
376,100 |
|
Electrical Equipment - 1.5% |
|||
Furukawa Electric Co. Ltd. |
186,000 |
2,250,007 |
|
Hitachi Cable Ltd. |
69,000 |
456,103 |
|
Nidec Copal Corp. |
91,000 |
861,990 |
|
Nitto Denko Corp. |
16,100 |
532,120 |
|
Sumitomo Electric Industries Ltd. |
108,000 |
1,353,400 |
|
Tokin Corp. (a) |
166,000 |
1,497,544 |
|
|
6,951,164 |
||
Machinery - 0.4% |
|||
SMC Corp. |
6,400 |
768,947 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
INDUSTRIALS - continued |
|||
Machinery - continued |
|||
THK Co. Ltd. |
38,100 |
$ 926,464 |
|
Union Tool Co. (a) |
4,300 |
243,330 |
|
|
1,938,741 |
||
TOTAL INDUSTRIALS |
15,113,293 |
||
INFORMATION TECHNOLOGY - 21.2% |
|||
Computers & Peripherals - 4.4% |
|||
Mitsumi Electric Co. Ltd. |
353,000 |
7,136,259 |
|
NEC Corp. |
630,000 |
11,552,939 |
|
Nippon Foundry, Inc. (a) |
326 |
2,526,553 |
|
|
21,215,751 |
||
Electronic Equipment & Instruments - 6.8% |
|||
Anritsu Corp. |
26,000 |
421,986 |
|
Hitachi Chemical Co. Ltd. |
408,500 |
6,663,552 |
|
Hoya Corp. |
18,800 |
1,248,883 |
|
Japan Aviation Electronics Industry Ltd. (a) |
105,000 |
591,596 |
|
Kyocera Corp. |
15,600 |
1,542,684 |
|
Murata Manufacturing Co. Ltd. |
14,000 |
1,192,951 |
|
Nichicon Corp. |
28,800 |
396,336 |
|
Nidec Corp. |
10,000 |
525,699 |
|
Oki Electric Industry Co. Ltd. (a) |
3,111,000 |
15,563,555 |
|
Yokogawa Electric Corp. |
458,000 |
4,732,765 |
|
|
32,880,007 |
||
Internet Software & Services - 0.1% |
|||
Softbank Corp. |
7,200 |
277,530 |
|
Office Electronics - 4.1% |
|||
Canon, Inc. |
129,000 |
5,153,550 |
|
Ricoh Co. Ltd. |
754,000 |
14,315,328 |
|
|
19,468,878 |
||
Semiconductor Equipment & Products - 1.9% |
|||
Rohm Co. Ltd. |
15,600 |
2,789,074 |
|
Tokyo Electron Ltd. |
15,900 |
1,173,596 |
|
Tokyo Seimitsu Co. Ltd. |
78,700 |
5,195,766 |
|
|
9,158,436 |
||
Software - 3.9% |
|||
Konami Corp. |
380,200 |
18,490,377 |
|
Net One Systems Co. Ltd. |
23 |
477,230 |
|
|
18,967,607 |
||
TOTAL INFORMATION TECHNOLOGY |
101,968,209 |
||
MATERIALS - 8.5% |
|||
Chemicals - 7.6% |
|||
Asahi Chemical Industry Co. Ltd. |
123,000 |
641,566 |
|
|
|||
Shares |
Value (Note 1) |
||
JSR Corp. |
107,000 |
$ 688,862 |
|
Nippon Paint Co. Ltd. |
940,000 |
3,600,176 |
|
Nissan Chemical Industries Co. Ltd. |
1,105,000 |
7,875,190 |
|
Shin-Etsu Chemical Co. Ltd. |
144,000 |
5,857,646 |
|
Teijin Ltd. |
1,779,000 |
9,250,052 |
|
Toray Industries, Inc. |
1,861,000 |
8,470,681 |
|
|
36,384,173 |
||
Construction Materials - 0.1% |
|||
Sumitomo Osaka Cement Co. Ltd. |
168,000 |
502,899 |
|
Containers & Packaging - 0.4% |
|||
Asahi Techno Glass Corp. |
363,000 |
1,875,539 |
|
Metals & Mining - 0.4% |
|||
Mitsubishi Materials Corp. |
671,000 |
1,815,998 |
|
TOTAL MATERIALS |
40,578,609 |
||
TELECOMMUNICATION SERVICES - 7.3% |
|||
Diversified Telecommunication Services - 0.5% |
|||
Japan Telecom Co. Ltd. |
30 |
506,836 |
|
Nippon Telegraph & Telephone Corp. |
284 |
1,828,382 |
|
|
2,335,218 |
||
Wireless Telecommunication Services - 6.8% |
|||
KDDI Corp. |
218 |
892,146 |
|
NTT DoCoMo, Inc. |
1,052 |
21,914,341 |
|
NTT DoCoMo, Inc. (c) |
472 |
9,832,290 |
|
|
32,638,777 |
||
TOTAL TELECOMMUNICATION SERVICES |
34,973,995 |
||
TOTAL COMMON STOCKS (Cost $444,836,693) |
466,480,916 |
||
Cash Equivalents - 12.2% |
|||
|
|
|
|
Fidelity Cash Central Fund, 4.70% (b) |
21,022,461 |
21,022,461 |
|
Fidelity Securities Lending |
37,614,470 |
37,614,470 |
|
TOTAL CASH EQUIVALENTS (Cost $58,636,931) |
58,636,931 |
||
TOTAL INVESTMENT PORTFOLIO - 109.4% (Cost $503,473,624) |
525,117,847 |
||
NET OTHER ASSETS - (9.4)% |
(45,135,779) |
||
NET ASSETS - 100% |
$ 479,982,068 |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(c) 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 |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $159,056,414 and $204,658,360, respectively. |
The fund participated in the security lending program during the period. Cash collateral includes amounts received for unsettled security loans. |
The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of Fidelity Management & Research Company. The commissions paid to these affiliated firms were $1,184 for the period. |
Income Tax Information |
At April 30, 2001, the aggregate cost of investment securities for income tax purposes was $508,077,748. Net unrealized appreciation aggregated $17,040,099, of which $70,441,537 related to appreciated investment securities and $53,401,438 related to depreciated investment securities. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Japan
Statement of Assets and Liabilities
|
April 30, 2001 (Unaudited) |
|
Assets |
|
|
Investment in securities, |
|
$ 525,117,847 |
Receivable for investments sold |
|
33,922 |
Receivable for fund shares sold |
|
1,026,620 |
Dividends receivable |
|
1,494,472 |
Interest receivable |
|
60,949 |
Redemption fees receivable |
|
1,934 |
Other receivables |
|
36,460 |
Total assets |
|
527,772,204 |
Liabilities |
|
|
Payable for investments purchased |
$ 9,077,506 |
|
Payable for fund shares redeemed |
513,574 |
|
Accrued management fee |
364,762 |
|
Other payables and |
219,824 |
|
Collateral on securities loaned, |
37,614,470 |
|
Total liabilities |
|
47,790,136 |
Net Assets |
|
$ 479,982,068 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 485,219,371 |
Accumulated net investment loss |
|
(1,769,271) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
(25,045,325) |
Net unrealized appreciation |
|
21,577,293 |
Net Assets, for 35,910,869 |
|
$ 479,982,068 |
Net Asset Value and redemption price per share ($479,982,068 ÷ 35,910,869 shares) |
|
$13.37 |
Maximum offering price per share (100/97.00 of $13.37) |
|
$13.78 |
Statement of Operations
|
Six months ended April 30, 2001 (Unaudited) |
|
Investment Income Dividends |
|
$ 1,936,794 |
Interest |
|
300,472 |
Security lending |
|
309,307 |
|
|
2,546,573 |
Less foreign taxes withheld |
|
(290,519) |
Total income |
|
2,256,054 |
Expenses |
|
|
Management fee |
$ 1,809,761 |
|
Performance adjustment |
562,108 |
|
Transfer agent fees |
682,172 |
|
Accounting and security lending fees |
148,894 |
|
Non-interested trustees' compensation |
127 |
|
Custodian fees and expenses |
122,078 |
|
Registration fees |
29,402 |
|
Audit |
43,297 |
|
Legal |
1,626 |
|
Reports to shareholders |
18,153 |
|
Miscellaneous |
2,103 |
|
Total expenses before reductions |
3,419,721 |
|
Expense reductions |
(55,934) |
3,363,787 |
Net investment income (loss) |
|
(1,107,733) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities |
(20,844,679) |
|
Foreign currency transactions |
(10,008) |
(20,854,687) |
Change in net unrealized appreciation (depreciation) on: |
|
|
Investment securities |
(83,963,464) |
|
Assets and liabilities in |
(49,097) |
(84,012,561) |
Net gain (loss) |
|
(104,867,248) |
Net increase (decrease) in net assets resulting from operations |
|
$ (105,974,981) |
Other Information |
|
$ 125,907 |
Expense reductions |
|
|
Directed brokerage arrangements |
|
$ 49,613 |
Transfer agent credits |
|
6,321 |
|
|
$ 55,934 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Japan
Financial Statements - continued
Statement of Changes in Net Assets
Increase (Decrease) in Net Assets |
Six months ended |
Year ended
October 31, |
Operations |
$ (1,107,733) |
$ (5,268,967) |
Net realized gain (loss) |
(20,854,687) |
207,757,804 |
Change in net unrealized appreciation (depreciation) |
(84,012,561) |
(206,813,500) |
Net increase (decrease) in net assets resulting from operations |
(105,974,981) |
(4,324,663) |
Distributions to shareholders |
- |
(13,253,040) |
In excess of net investment income |
- |
(7,139,053) |
From net realized gain |
(120,913,847) |
- |
Total distributions |
(120,913,847) |
(20,392,093) |
Share transactions |
112,024,717 |
541,936,015 |
Reinvestment of distributions |
116,957,581 |
19,730,662 |
Cost of shares redeemed |
(146,475,006) |
(806,715,842) |
Net increase (decrease) in net assets resulting from share transactions |
82,507,292 |
(245,049,165) |
Redemption fees |
413,543 |
2,474,935 |
Total increase (decrease) in net assets |
(143,967,993) |
(267,290,986) |
Net Assets |
|
|
Beginning of period |
623,950,061 |
891,241,047 |
End of period (including undistributed net investment income (loss) of $(1,769,271) and |
$ 479,982,068 |
$ 623,950,061 |
Other Information Shares |
|
|
Sold |
7,827,340 |
22,194,873 |
Issued in reinvestment of distributions |
7,478,106 |
825,192 |
Redeemed |
(9,935,742) |
(33,425,489) |
Net increase (decrease) |
5,369,704 |
(10,405,424) |
Financial Highlights
|
Six months ended |
Years ended October 31, |
||||
Selected Per-Share Data |
(Unaudited) |
2000 |
1999 |
1998 |
1997 |
1996 |
Net asset value, beginning of period |
$ 20.43 |
$ 21.77 |
$ 10.09 |
$ 11.10 |
$ 11.68 |
$ 12.08 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D |
(.03) |
(.14) |
(.07) |
(.04) |
(.06) |
(.02) |
Net realized and unrealized gain (loss) |
(2.97) |
(.81) F |
11.74 |
(.81) |
(.55) |
(.40) |
Total from investment operations |
(3.00) |
(.95) |
11.67 |
(.85) |
(.61) |
(.42) |
Less Distributions |
|
|
|
|
|
|
From net investment income |
- |
(.30) |
- |
- |
- |
- |
In excess of net investment income |
- |
(.16) |
(.03) |
(.18) |
(.01) |
- |
From net realized gain |
(4.07) |
- |
- |
- |
- |
- |
Total distributions |
(4.07) |
(.46) |
(.03) |
(.18) |
(.01) |
- |
Redemption fees added to paid in capital |
.01 |
.07 |
.04 |
.02 |
.04 |
.02 |
Net asset value, end of period |
$ 13.37 |
$ 20.43 |
$ 21.77 |
$ 10.09 |
$ 11.10 |
$ 11.68 |
Total Return B, C |
(17.53)% |
(4.35)% |
116.35% |
(7.52)% |
(4.89)% |
(3.31)% |
Ratios and Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 479,982 |
$ 623,950 |
$ 891,241 |
$ 265,395 |
$ 255,555 |
$ 290,495 |
Ratio of expenses to average net assets |
1.41% A |
1.17% |
1.24% |
1.49% |
1.42% |
1.15% |
Ratio of expenses to average net assets after |
1.39% A, E |
1.16% E |
1.23% E |
1.48% E |
1.40% E |
1.14% E |
Ratio of net investment income (loss) to average net assets |
(.46)% A |
(.58)% |
(.47)% |
(.37)% |
(.54)% |
(.12)% |
Portfolio turnover rate |
66% A |
124% |
79% |
62% |
70% |
83% |
A Annualized B The total returns would have been lower had certain expenses not been reduced during the periods shown. C Total returns do not include the one time sales charge and for periods of less than one year are not annualized. D Net investment income (loss) per share has been calculated based on average shares outstanding during the period. E FMR or the fund has entered into varying arrangements with third parties who either paid or reduced a portion of the fund's expenses. F The amount shown for a share outstanding does not correspond with the aggregate net gain on investments for the period due to the timing of sales and repurchases of fund shares in relation to fluctuating
market values of the investments |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
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. Total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value).
Cumulative Total Returns
Periods ended |
Past 6 |
Past 1 |
Past 5 |
Life of |
Fidelity Japan |
-13.74% |
-36.77% |
9.54% |
24.54% |
Fidelity Japan |
-16.33% |
-38.67% |
6.25% |
20.81% |
TOPIX Second Section |
-13.04% |
-30.46% |
-23.83% |
-10.65% |
Japanese |
-15.27% |
-32.78% |
-6.05% |
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 November 1, 1995. For example, if you had invested $1,000 in a fund that had a 5% return over the past year, the value of your investment would be $1,050. You can compare the fund's returns to the performance of the Tokyo Stock Exchange Second Section Stock Price Index (TOPIX Second Section) - a market capitalization-weighted index that reflects the performance of the smaller, less established and newly listed companies of the Tokyo Stock Exchange. To measure how the fund's performance stacked up against its peers, you can compare the fund's performance to the Japanese funds average, which reflects the performance of mutual funds with similar objectives tracked by Lipper Inc. The past six months average represents a peer group of 55 mutual funds. These benchmarks include reinvested dividends and capital gains, if any, and exclude the effect of sales charges.
Average Annual Total Returns
Periods ended |
|
Past 1 |
Past 5 |
Life of |
Fidelity Japan |
|
-36.77% |
1.84% |
4.07% |
Fidelity Japan |
|
-38.67% |
1.22% |
3.50% |
TOPIX Second Section |
|
-30.46% |
-5.30% |
-2.03% |
Japanese |
|
-32.78% |
-1.63% |
n/a * |
Average annual total returns take the fund's cumulative return and show you what would have happened if the fund had performed at a constant rate each year.
* Not available
$10,000 Over Life of Fund
$10,000 Over Life of Fund: Let's say hypothetically that $10,000 was invested in Fidelity Japan Smaller Companies Fund on November 1, 1995, when the fund started, and the current 3.00% sales charge was paid. As the chart shows, by April 30, 2001, the value of the investment would have grown to $12,081 - a 20.81% increase on the initial investment. For comparison, look at how the Tokyo Stock Exchange Second Section Stock Price Index did over the same period. With dividends and capital gains, if any, reinvested, the same $10,000 would have been $8,935 - a 10.65% decrease.
Understanding Performance
Many markets around the globe offer the potential for significant growth over time; however, investing in foreign markets means assuming greater risks than investing in the United States. Factors like changes in a country's financial markets, its local political and economic climate, and the fluctuating value of its currency create these risks. For these reasons an international fund's performance may be more volatile than a fund that invests exclusively in the United States. Past performance is no guarantee of future results and you may have a gain or loss when you sell your shares.
3Semiannual Report
Japan Smaller Companies
(Portfolio Manager photograph)
An interview with Kenichi Mizushita, Portfolio Manager of Fidelity Japan Smaller
Companies Fund
Q. How did the fund perform, Kenichi?
A. For the six months that ended April 30, 2001, the fund returned -13.74%. By comparison, the Tokyo Stock Exchange Second Section Stock Price Index (TOPIX Second Section) returned -13.04%, and the Japanese funds average as monitored by Lipper Inc. returned -15.27% for the same time period. For the 12 months that ended April 30, 2001, the fund fell 36.77%, while the TOPIX Second Section index and the Japanese funds average were down 30.46% and 32.78%, respectively.
Q. What factors accounted for the negative performance of the fund and its benchmarks during the six-month period?
A. The most important factors were the continued bad-debt problems of the banking sector and growing political uncertainty, as confidence in the government of Prime Minister Mori plummeted. The combination of the slowdown in the U.S. economy and the Japanese manufacturing sector's production adjustment also led to further weakness in the Japanese stock market. However, while the small-cap market was sold off significantly during 2000 and posted a negative return for the past six months, year-to-date performance rebounded and small caps outperformed large caps on a relative basis. Continued problems in the large-cap market, such as the bad-debt problems of the banking sector, led to a negative supply/demand environment for these stocks. As a result, the fund outperformed its peer group - which primarily consists of large-cap funds - during the period. Its performance was more in line with the small-cap universe of stocks in the TOPIX Second Section index.
Q. What was your strategy in this difficult environment?
A. I shifted the fund from economically and export-sensitive sectors, such as machinery and electronics, and added holdings in domestic-oriented retail and service sectors. At the same time, I increased the fund's investments in small-cap companies with historically low valuations. I continued to search for companies with good medium- to long-term growth potential. Although these strategies all helped the fund's performance, they could not offset the negative effect of the general drop in Japanese stock prices.
Q. Which stocks performed well?
A. Japan Medical Dynamics, an importer of orthopedic medical equipment, benefited from the introduction of its innovative electrical scalpel into the U.S. market, which led to strong stock price performance. Kappa Create, a leading operator of specialized sushi restaurant chains, is one of the only companies successfully competing and growing profits in the restaurant industry, where pricing competition intensified, deflation picked up and same-store sales continued to show negative growth. H.I.S. Company, one of Japan's largest discount travel agencies, began to refocus on its core ticketing business and achieved above-average growth within its industry.
Q. Which stocks detracted from the fund's performance?
A. Toyoda Gosei is the largest maker of blue LEDs - high brightness displays for cell phones, among other products - and also manufactures auto parts for Toyota. The company was hurt by the overall downward production adjustment for cellular phones, which caused a decline in demand for blue LED products. Hogy Medical, the largest supplier of surgical gowns, expanded its business with its new sterilized surgical tools, but the short-term impact was limited. Its stock performance was down after the previous year's good showing. However, the company's long-term prospects appear to be positive, and its growth potential remains attractive, so I continued to hold the stock. The downward adjustment in overall production equipment and machinery hurt Nitto-Kohki, the largest manufacturer of fluid coupling and linear motion pumps. The company is still a niche market leader, though, with high margins and return on investment, and I continued to maintain the fund's position.
Q. What's your outlook, Kenichi?
A. I see good opportunities in small-cap stocks. Their valuations remain attractive compared to the large-cap market and, so far, small caps have achieved better relative performance during 2001. Overall, I anticipate no significant changes in my investment strategy. I'll continue to focus on the fundamentals of individual companies and search for growing companies with attractive valuations. The small-cap market is highly illiquid right now, and it is quite difficult to buy and sell securities within a short time horizon. Therefore, it becomes even more important to understand and differentiate the competitive strengths and long-term potential return of candidates for the fund's portfolio. Fortunately, the Japanese market is continuing to expand as more and more new companies become public, leading to better opportunities for small-cap investing.
The views expressed in this report reflect those of the portfolio manager only through the end of the period of the report as stated on the cover. The manager's views are subject to change at any time based on market or other conditions. For more information, see page 3.
Fund Facts
Goal: long-term growth of capital by investing mainly in equity securities of Japanese issuers with smaller market capitalizations
Fund number: 360
Trading symbol: FJSCX
Start date: November 1, 1995
Size: as of April 30, 2001, more than $430 million
Manager: Kenichi Mizushita, since 1996; manager, several Fidelity Investments Japan, Limited and institutional funds; joined Fidelity in 1985
3Semiannual Report
Japan Smaller Companies
Geographic Diversification (% of fund's net assets) |
|||
As of April 30, 2001 |
|||
Japan |
95.5% |
|
|
United States of America |
4.5% |
|
As of October 31, 2000 |
|||
Japan |
98.6% |
|
|
United States of America |
1.4% |
|
Percentages are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation |
||
|
% of fund's |
% of fund's net assets |
Stocks |
95.5 |
98.6 |
Short-Term Investments |
4.5 |
1.4 |
Top Ten Stocks as of April 30, 2001 |
||
|
% of fund's |
% of fund's net assets |
Japan Medical Dynamic Marketing, Inc. (Health Care Equipment & Supplies) |
4.3 |
2.6 |
Yamada Denki Co. Ltd. |
4.3 |
4.4 |
Hogy Medical Co. (Health Care Equipment & Supplies) |
4.3 |
5.0 |
Kappa Create Co. Ltd. |
3.6 |
2.2 |
Fujimi, Inc. |
2.8 |
2.7 |
Cosel Co. Ltd. (Electronic Equipment & Instruments) |
2.7 |
4.2 |
Fancl Corp. (Personal Products) |
2.7 |
1.1 |
USS Co. Ltd. |
2.4 |
0.4 |
Sumida Corp. (Electronic Equipment & Instruments) |
2.3 |
3.0 |
H.I.S. Co. Ltd. |
2.1 |
0.0 |
|
31.5 |
|
Market Sectors as of April 30, 2001 |
||
|
% of fund's |
% of fund's net assets |
Consumer Discretionary |
24.5 |
25.1 |
Information Technology |
23.2 |
22.4 |
Industrials |
22.4 |
30.2 |
Health Care |
9.7 |
7.9 |
Consumer Staples |
6.5 |
5.0 |
Materials |
6.4 |
5.6 |
Financials |
2.8 |
2.4 |
Effective with this report, industry classifications follow the MSCI/S&P Global Industry Classification Standard. This replaces the U.S. Standard Industrial Classification system that is being phased out. Prior period industry percentages reflect the new standard. |
Semiannual Report
Japan Smaller Companies
(Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.5% |
|||
Shares |
Value (Note 1) |
||
CONSUMER DISCRETIONARY - 24.5% |
|||
Auto Components - 2.5% |
|||
Nissin Kogyo Co. Ltd. |
25,000 |
$ 625,344 |
|
Ohashi Technica, Inc. |
207,000 |
2,648,341 |
|
Toyoda Gosei Co. Ltd. |
352,000 |
7,476,897 |
|
|
10,750,582 |
||
Hotels Restaurants & Leisure - 5.8% |
|||
H.I.S. Co. Ltd. (a) |
380,000 |
9,287,072 |
|
Joyfull Co. Ltd. |
22,000 |
297,705 |
|
Kappa Create Co. Ltd. |
345,400 |
15,579,854 |
|
|
25,164,631 |
||
Household Durables - 2.3% |
|||
Chiyoda Integre Co. Ltd. (a) |
70,000 |
734,830 |
|
Funai Electric Co. Ltd. |
88,500 |
6,089,536 |
|
Odelic Co. Ltd. (a) |
18,000 |
88,573 |
|
Ono Sangyo Co. Ltd. |
42,000 |
151,214 |
|
Takano Co. Ltd. |
100,000 |
1,246,587 |
|
Tohoku Pioneer Corp. |
40,000 |
1,525,429 |
|
|
9,836,169 |
||
Internet & Catalog Retail - 1.7% |
|||
Rakuten, Inc. |
10 |
74,057 |
|
Shaddy Co. Ltd. |
558,000 |
7,212,227 |
|
|
7,286,284 |
||
Leisure Equipment & Products - 1.0% |
|||
Daito Chemix Corp. |
379,000 |
2,051,456 |
|
TAIYO ELEC Co. Ltd. |
230,000 |
2,395,579 |
|
|
4,447,035 |
||
Media - 1.9% |
|||
Asia Securities Printing Co. Ltd. (a) |
578,000 |
5,214,342 |
|
Takara Printing Co. Ltd. |
300,000 |
3,050,857 |
|
|
8,265,199 |
||
Multiline Retail - 3.3% |
|||
Don Quijote Co. Ltd. |
92,000 |
7,024,517 |
|
Mitta Co. Ltd. |
297,000 |
5,918,909 |
|
Thanks Japan Corp. |
132,000 |
1,407,331 |
|
|
14,350,757 |
||
Specialty Retail - 5.5% |
|||
Aoyama Trading Co. Ltd. |
2,600 |
32,134 |
|
Fujikyu Corp. (a) |
1,700 |
20,077 |
|
Nishimatsuya Chain Co. Ltd. |
35,700 |
582,640 |
|
Salomon & Taylor Made Co. Ltd. (a) |
291,000 |
3,317,315 |
|
Tay Two Co. Ltd. |
22 |
64,954 |
|
Top Culture Co. Ltd. |
70,000 |
763,534 |
|
Workman Co. Ltd. (a) |
23,000 |
367,825 |
|
Yamada Denki Co. Ltd. |
221,000 |
18,378,463 |
|
|
23,526,942 |
||
Textiles & Apparel - 0.5% |
|||
Kyoto Kimono Yuzen Co. Ltd. |
418 |
2,022,587 |
|
TOTAL CONSUMER DISCRETIONARY |
105,650,186 |
||
|
|||
Shares |
Value (Note 1) |
||
CONSUMER STAPLES - 6.5% |
|||
Food & Drug Retailing - 3.0% |
|||
Ariake Japan Co. Ltd. |
146,000 |
$ 7,675,203 |
|
C Two-Network Co. Ltd. |
72,500 |
5,089,683 |
|
Ozeki Co. Ltd. |
4,000 |
147,622 |
|
Terashima Co. Ltd. |
10,000 |
57,819 |
|
|
12,970,327 |
||
Food Products - 0.8% |
|||
Rock Field Co. Ltd. (a) |
107,500 |
3,323,753 |
|
Personal Products - 2.7% |
|||
Fancl Corp. |
200,000 |
11,645,746 |
|
TOTAL CONSUMER STAPLES |
27,939,826 |
||
FINANCIALS - 2.8% |
|||
Banks - 0.4% |
|||
Tokyo Tomin Bank Ltd. |
105,200 |
1,505,532 |
|
Diversified Financials - 2.4% |
|||
F&M Co. Ltd. |
433 |
3,196,019 |
|
JAFCO Co. Ltd. |
15,800 |
1,889,268 |
|
Venture Link Co. Ltd. |
80,000 |
5,248,787 |
|
|
10,334,074 |
||
Real Estate - 0.0% |
|||
RECRM RESEARCH Co. Ltd. |
1 |
28,458 |
|
TOTAL FINANCIALS |
11,868,064 |
||
HEALTH CARE - 9.7% |
|||
Health Care Equipment & Supplies - 8.9% |
|||
Hogy Medical Co. |
372,000 |
18,305,144 |
|
Japan Medical Dynamic Marketing, Inc. |
411,000 |
18,707,416 |
|
Nakanishi, Inc. |
59,000 |
1,354,843 |
|
|
38,367,403 |
||
Pharmaceuticals - 0.8% |
|||
Hokuriku Seiyaku Co. Ltd. |
70,000 |
1,535,680 |
|
JCR Pharmaceuticals Co. Ltd. (a) |
290,000 |
1,786,146 |
|
|
3,321,826 |
||
TOTAL HEALTH CARE |
41,689,229 |
||
INDUSTRIALS - 22.4% |
|||
Airlines - 0.5% |
|||
Skymark Airlines Co. Ltd. |
2,241 |
2,352,506 |
|
Building Products - 1.9% |
|||
Arc Land Sakamoto Co. Ltd. |
652,000 |
8,127,746 |
|
Commercial Services & Supplies - 2.7% |
|||
Kyoritsu Maintenance Co. Ltd. |
11,700 |
273,470 |
|
Nichii Gakkan Co. |
175,100 |
6,892,969 |
|
Nippon System Development Co. Ltd. |
39,000 |
2,302,905 |
|
Painthouse Co. Ltd. |
59 |
2,201,620 |
|
|
11,670,964 |
||
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
INDUSTRIALS - continued |
|||
Construction & Engineering - 0.3% |
|||
Hitachi Metals Techno Ltd. |
265,000 |
$ 1,140,996 |
|
Electrical Equipment - 5.5% |
|||
Fujikura Ltd. |
890,000 |
7,116,617 |
|
Hakuto Co. Ltd. |
190,000 |
4,861,689 |
|
Juki Corp. (a) |
1,732,000 |
6,960,219 |
|
Kubotek Corp. |
20 |
483,873 |
|
Nihon Trim Co. Ltd. |
41,000 |
1,244,127 |
|
Noda Screen Co. Ltd. |
87 |
884,749 |
|
Photonics Corp. |
50 |
1,332,700 |
|
Tokki Corp. |
30,000 |
836,525 |
|
|
23,720,499 |
||
Machinery - 9.5% |
|||
CKD Corp. |
623,000 |
3,678,743 |
|
Hino Motors Ltd. (a) |
150,000 |
695,054 |
|
Kitagawa Seiki Co. Ltd. |
140,000 |
734,830 |
|
Mars Engineering Corp. (a) |
128,000 |
3,453,702 |
|
Mitsui Engineering & |
40,000 |
60,033 |
|
Naito & Co. Ltd. |
30,000 |
216,512 |
|
NGK Insulators Ltd. |
200,000 |
2,340,631 |
|
Nitto Kohki Co. Ltd. |
475,000 |
8,141,770 |
|
Star Micronics Co. Ltd. |
659,000 |
8,474,429 |
|
THK Co. Ltd. |
220,000 |
5,349,662 |
|
Toba, Inc. |
49,000 |
434,009 |
|
Tsubaki Nakashima Co. Ltd. |
538,000 |
5,074,101 |
|
Union Tool Co. (a) |
37,100 |
2,099,433 |
|
|
40,752,909 |
||
Trading Companies & Distributors - 2.0% |
|||
Iuchi Seieido Co. Ltd. |
131,000 |
1,923,106 |
|
Misumi Corp. |
114,800 |
6,684,658 |
|
|
8,607,764 |
||
TOTAL INDUSTRIALS |
96,373,384 |
||
INFORMATION TECHNOLOGY - 23.2% |
|||
Communications Equipment - 0.3% |
|||
NextCom K.K. |
3 |
161,154 |
|
Nippon Antenna Co. Ltd. (a) |
80,000 |
951,343 |
|
|
1,112,497 |
||
Computers & Peripherals - 0.6% |
|||
Nippon Foundry, Inc. (a) |
214 |
1,658,535 |
|
Pulstec Industrial Co. Ltd. |
42,000 |
354,785 |
|
Roland DG Corp. |
60,000 |
433,025 |
|
Sofmap Co. Ltd. |
9,600 |
171,635 |
|
|
2,617,980 |
||
Electronic Equipment & Instruments - 12.7% |
|||
Citizen Electronics Co. Ltd. (a) |
91,100 |
5,005,784 |
|
Cosel Co. Ltd. |
589,500 |
11,772,311 |
|
Idec Izumi Corp. |
920,000 |
8,284,554 |
|
Image One Co. Ltd. |
7 |
26,121 |
|
|
|||
Shares |
Value (Note 1) |
||
Meiko Electronics Co. Ltd. |
148,000 |
$ 1,359,436 |
|
Nagano Keiki Co. Ltd. |
200,000 |
4,182,627 |
|
Nichiden Corp. |
30,000 |
383,818 |
|
Nidec Corp. |
90,000 |
4,731,289 |
|
Nitto Electric Works Ltd. (a) |
410,000 |
3,022,891 |
|
Oki Electric Industry Co. Ltd. (a) |
560,000 |
2,801,540 |
|
Sansha Electric |
76,000 |
623,293 |
|
Sumida Corp. |
306,000 |
9,887,730 |
|
Tamagawa Electronics Co. Ltd. |
50,000 |
533,080 |
|
Tamron Co. Ltd. |
150,000 |
1,045,657 |
|
Unipulse Corp. |
44,000 |
1,259,381 |
|
|
54,919,512 |
||
Internet Software & Services - 2.5% |
|||
Index Corp. (a) |
10 |
57,819 |
|
Softbank Investment Corp. |
21 |
409,897 |
|
USS Co. Ltd. |
370,000 |
10,195,768 |
|
|
10,663,484 |
||
IT Consulting & Services - 2.3% |
|||
Fujitsu Support & Service, Inc. (FSAS) |
60,000 |
2,583,387 |
|
Hitachi Information Systems Co. Ltd. |
190,000 |
5,438,235 |
|
Mkc-Stat Corp. |
94,000 |
1,476,303 |
|
Sakura KCS Corp. |
37,000 |
303,445 |
|
|
9,801,370 |
||
Semiconductor Equipment & Products - 2.0% |
|||
Daito Electron Co. Ltd. |
78,000 |
1,311,377 |
|
Techno Quartz, Inc. |
70,000 |
947,242 |
|
TESEC Corp. |
60,000 |
1,156,373 |
|
Tokyo Seimitsu Co. Ltd. |
77,000 |
5,083,532 |
|
|
8,498,524 |
||
Software - 2.8% |
|||
EM Systems Co. Ltd. |
168,000 |
2,604,054 |
|
Jastec Co. Ltd. (a) |
1,000 |
29,196 |
|
Sammy Corp. |
305,000 |
9,029,964 |
|
XNET Corp. |
26 |
537,345 |
|
|
12,200,559 |
||
TOTAL INFORMATION TECHNOLOGY |
99,813,926 |
||
MATERIALS - 6.4% |
|||
Chemicals - 2.8% |
|||
C. Uyemura & Co. Ltd. (a) |
180,000 |
3,520,788 |
|
Enplas Corp. (a) |
207,000 |
5,059,010 |
|
Fujimori Kogyo Co. Ltd. |
36,000 |
206,671 |
|
Hagihara Industries, Inc. |
10,000 |
61,591 |
|
Nihon Micro Coating Co. Ltd. (a) |
1,100 |
54,669 |
|
Nippon Chemical Industrial Co. Ltd. |
200,000 |
642,976 |
|
Nippon Sanso KK |
396,000 |
1,539,404 |
|
Sakai Chemical Industry Co. Ltd. (a) |
170,000 |
998,254 |
|
|
12,083,363 |
||
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
MATERIALS - continued |
|||
Construction Materials - 3.2% |
|||
Fujimi, Inc. |
436,000 |
$ 11,978,716 |
|
Nippon Ceramic Co. Ltd. |
99,000 |
1,607,605 |
|
|
13,586,321 |
||
Metals & Mining - 0.0% |
|||
Hakudo Co. Ltd. |
13,000 |
186,578 |
|
Paper & Forest Products - 0.4% |
|||
Nippon Unipac Holding |
300 |
1,773,926 |
|
OZU Corp. |
10,000 |
82,012 |
|
|
1,855,938 |
||
TOTAL MATERIALS |
27,712,200 |
||
TOTAL COMMON STOCKS (Cost $370,218,653) |
411,046,815 |
||
Cash Equivalents - 10.2% |
|||
|
|
|
|
Fidelity Cash Central Fund, 4.70% (b) |
22,360,453 |
22,360,453 |
|
Fidelity Securities Lending Cash Central Fund, 4.59% (b) |
21,636,593 |
21,636,593 |
|
TOTAL CASH EQUIVALENTS (Cost $43,997,046) |
43,997,046 |
||
TOTAL INVESTMENT PORTFOLIO - 105.7% (Cost $414,215,699) |
455,043,861 |
||
NET OTHER ASSETS - (5.7)% |
(24,450,585) |
||
NET ASSETS - 100% |
$ 430,593,276 |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $83,683,690 and $151,198,024. |
The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of Fidelity Management & Research Company. The commissions paid to these affiliated firms were $8,271 for the period. |
The fund participated in the security lending program during the period. Cash collateral includes amounts received for unsettled security loans. |
Income Tax Information |
At April 30, 2001, the aggregate cost of investment securities for income tax purposes was $414,812,497. Net unrealized appreciation aggregated $40,231,364, of which $102,338,128 related to appreciated investment securities and $62,106,764 related to depreciated investment securities. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Japan Smaller Companies
Statement of Assets and Liabilities
|
April 30, 2001 (Unaudited) |
|
Assets |
|
|
Investment in securities, at value (including securities loaned of $18,620,983) (cost $414,215,699) - See accompanying schedule |
|
$ 455,043,861 |
Receivable for investments sold |
|
1,555,596 |
Receivable for fund shares sold |
|
413,996 |
Dividends receivable |
|
1,189,569 |
Interest receivable |
|
54,292 |
Redemption fees receivable |
|
550 |
Other receivables |
|
19,591 |
Total assets |
|
458,277,455 |
Liabilities |
|
|
Payable for investments purchased |
$ 5,335,874 |
|
Payable for fund shares redeemed |
346,326 |
|
Accrued management fee |
241,380 |
|
Other payables and |
124,006 |
|
Collateral on securities loaned, |
21,636,593 |
|
Total liabilities |
|
27,684,179 |
Net Assets |
|
$ 430,593,276 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 398,346,259 |
Accumulated net investment loss |
|
(1,414,191) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
(7,141,366) |
Net unrealized appreciation (depreciation) on investments |
|
40,802,574 |
Net Assets, for 53,042,786 shares outstanding |
|
$ 430,593,276 |
Net Asset Value and redemption price per share ($430,593,276 ÷ 53,042,786 shares) |
|
$8.12 |
Maximum offering price per share (100/97.00 of $8.12) |
|
$8.37 |
Statement of Operations
|
Six months ended April 30, 2001 (Unaudited) |
|
Investment Income Dividends |
|
$ 1,583,855 |
Interest |
|
263,467 |
Security lending |
|
164,576 |
|
|
2,011,898 |
Less foreign taxes withheld |
|
(237,579) |
Total income |
|
1,774,319 |
Expenses |
|
|
Management fee |
$ 1,603,946 |
|
Transfer agent fees |
725,905 |
|
Accounting and security lending fees |
132,981 |
|
Non-interested trustees' compensation |
810 |
|
Custodian fees and expenses |
85,821 |
|
Registration fees |
26,209 |
|
Audit |
18,900 |
|
Legal |
1,744 |
|
Reports to shareholders |
23,098 |
|
Miscellaneous |
2,576 |
|
Total expenses before reductions |
2,621,990 |
|
Expense reductions |
(48,373) |
2,573,617 |
Net investment income (loss) |
|
(799,298) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities |
(6,584,541) |
|
Foreign currency transactions |
15,976 |
(6,568,565) |
Change in net unrealized appreciation (depreciation) on: |
|
|
Investment securities |
(66,521,377) |
|
Assets and liabilities in |
(11,042) |
(66,532,419) |
Net gain (loss) |
|
(73,100,984) |
Net increase (decrease) in net assets resulting from operations |
|
$ (73,900,282) |
Other Information |
|
$ 98,747 |
Expense reductions |
|
|
Directed brokerage arrangements |
|
$ 42,969 |
Transfer agent credits |
|
5,404 |
|
|
$ 48,373 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Japan Smaller Companies
Financial Statements - continued
Statement of Changes in Net Assets
Increase (Decrease) in Net Assets |
Six months ended |
Year ended
October 31, |
Operations |
$ (799,298) |
$ (7,243,995) |
Net realized gain (loss) |
(6,568,565) |
342,536,202 |
Change in net unrealized appreciation (depreciation) |
(66,532,419) |
(590,163,156) |
Net increase (decrease) in net assets resulting from operations |
(73,900,282) |
(254,870,949) |
Distributions to shareholders |
- |
(13,572,554) |
From net realized gain |
(162,485,496) |
- |
Total distributions |
(162,485,496) |
(13,572,554) |
Share transactions |
85,995,766 |
877,121,325 |
Reinvestment of distributions |
157,958,694 |
13,197,729 |
Cost of shares redeemed |
(136,853,128) |
(1,847,897,526) |
Net increase (decrease) in net assets resulting from share transactions |
107,101,332 |
(957,578,472) |
Redemption fees |
300,523 |
5,586,856 |
Total increase (decrease) in net assets |
(128,983,923) |
(1,220,435,119) |
Net Assets |
|
|
Beginning of period |
559,577,199 |
1,780,012,318 |
End of period (including accumulated net investment loss of $1,414,191 and $655,391, respectively) |
$ 430,593,276 |
$ 559,577,199 |
Other Information Shares |
|
|
Sold |
10,008,963 |
39,903,223 |
Issued in reinvestment of distributions |
18,197,706 |
575,817 |
Redeemed |
(14,433,822) |
(87,766,609) |
Net increase (decrease) |
13,772,847 |
(47,287,569) |
Financial Highlights
|
Six months ended |
Years ended October 31, |
||||
Selected Per-Share Data |
(Unaudited) |
2000 |
1999 |
1998 |
1997 |
1996 E |
Net asset value, beginning of period |
$ 14.25 |
$ 20.56 |
$ 6.01 |
$ 6.47 |
$ 9.13 |
$ 10.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D |
(.02) |
(.12) |
(.03) |
(.01) |
(.03) |
(.03) |
Net realized and unrealized gain (loss) |
(1.66) |
(6.13) |
14.45 |
(.45) |
(2.63) |
(.87) |
Total from investment operations |
(1.68) |
(6.25) |
14.42 |
(.46) |
(2.66) |
(.90) |
Less Distributions |
|
|
|
|
|
|
In excess of net investment income |
- |
(.15) |
- |
(.01) |
(.01) |
- |
From net realized gain |
(4.46) |
- |
- |
- |
(.03) |
- |
Total distributions |
(4.46) |
(.15) |
- |
(.01) |
(.04) |
- |
Redemption fees added to paid in capital |
.01 |
.09 |
.13 |
.01 |
.04 |
.03 |
Net asset value, end of period |
$ 8.12 |
$ 14.25 |
$ 20.56 |
$ 6.01 |
$ 6.47 |
$ 9.13 |
Total Return B, C |
(13.74)% |
(30.24)% |
242.10% |
(6.94)% |
(28.80)% |
(8.70)% |
Ratios and Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 430,593 |
$ 559,577 |
$ 1,780,012 |
$ 99,987 |
$ 84,274 |
$ 105,664 |
Ratio of expenses to average net assets |
1.22% A |
1.07% |
1.07% |
1.23% |
1.35% |
1.34% |
Ratio of expenses to average net assets |
1.20% A, F |
1.06% F |
1.07% |
1.23% |
1.34% F |
1.34% |
Ratio of net investment income (loss) to average net assets |
(.37)% A |
(.57)% |
(.22)% |
(.20)% |
(.46)% |
(.32)% |
Portfolio turnover rate |
39% A |
39% |
39% |
39% |
101% |
66% |
A Annualized B The total returns would have been lower had certain expenses not been reduced during the periods shown. C Total returns do not include the one time sales charge and for periods of less than one year are not annualized. D Net investment income (loss) per share has been calculated based on average shares outstanding during the period. E For the period November 1, 1995 (commencement of operations) to October 31, 1996. F FMR or the fund has entered into varying arrangements with third parties who either paid or reduced a portion of the fund's expenses. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
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. Total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value).
Cumulative Total Returns
Periods ended |
Past 6 |
Past 1 |
Past 5 |
Life of |
Fidelity Latin America |
-7.65% |
-11.41% |
14.22% |
38.96% |
Fidelity Latin America (incl. 3.00% |
-10.42% |
-14.07% |
10.79% |
34.79% |
MSCI EMF - |
-0.88% |
-6.29% |
29.79% |
88.10% |
Latin American |
-5.34% |
-9.54% |
21.60% |
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 April 19, 1993. For example, if you had invested $1,000 in a fund that had a 5% return over the past year, the value of your investment would be $1,050. You can compare the fund's returns to the performance of the Morgan Stanley Capital International (MSCI) Emerging Markets Free-Latin America Index - a market capitalization-weighted index of over 88 stocks traded in seven Latin American markets. To measure how the fund's performance stacked up against its peers, you can compare it to the Latin American funds average, which reflects the performance of mutual funds with similar objectives tracked by Lipper Inc. The past six months average represents a peer group of 40 mutual funds. These benchmarks include reinvested dividends and capital gains, if any, and exclude the effect of sales charges.
Average Annual Total Returns
Periods ended |
Past 1 |
Past 5 |
Life of |
Fidelity Latin America |
-11.41% |
2.69% |
4.18% |
Fidelity Latin America |
-14.07% |
2.07% |
3.78% |
MSCI EMF - Latin America |
-6.29% |
5.35% |
8.18% |
Latin American Funds Average |
-9.54% |
3.69% |
n/a * |
Average annual total returns take the fund's cumulative return and show you what would have happened if the fund had performed at a constant rate each year.
* Not available
$10,000 Over Life of Fund
$10,000 Over Life of Fund: Let's say hypothetically that $10,000 was invested in Fidelity Latin America Fund on April 19, 1993, when the fund started, and the current 3.00% sales charge was paid. As the chart shows, by April 30, 2001, the value of the investment would have grown to $13,479 - a 34.79% increase on the initial investment. For comparison, look at how the Morgan Stanley Capital International Emerging Markets Free-Latin America Index did over the same period. With dividends and capital gains, if any, reinvested, the same $10,000 would have grown to $18,810 - an 88.10% 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. Past performance is no guarantee of future results and you may have a gain or loss when you sell your shares.
3Semiannual Report
Latin America
(Portfolio Manager photograph)
An interview with
Patti Satterthwaite,
Portfolio Manager of
Fidelity Latin America Fund
Q. How did the fund perform, Patti?
A. For the six months that ended April 30, 2001, the fund returned -7.65%, trailing the Morgan Stanley Capital International Emerging Markets Free (MSCI EMF) - Latin America Index, which returned -0.88%, and the Latin America funds average tracked by Lipper Inc., which returned -5.34% during the same period. For the 12 months that ended April 30, 2001, the fund returned -11.41%, while the MSCI EMF-Latin America index and Lipper average returned -6.29% and -9.54%, respectively.
Q. What was the market environment like in Latin America during the past six months?
A. Economic expansion, although muted by a sharp slowdown in U.S. and global demand and weakening export growth, continued to unfold in the region. Mexico benefited from above-average oil prices, stronger-than-expected consumer demand and a very strong peso - along with the dollar, one of the strongest currencies in the world during the period. The country also continued to ride a successful democratic presidential election and credit-rating upgrade, which occurred in 2000. Mexican equities were generally flat during the period, which helped buoy the index. That performance was striking given the market's high correlation to the NASDAQ in the U.S., which declined more than 37%. Brazil - the largest economy in the Latin American region - enjoyed steady growth until March when, in an unexpected move, it raised interest rates twice to support its currency, the real, and contain inflationary pressures. Brazil's rate increases, coupled with political instability in Argentina, reignited worries that economic growth in the whole region could be dampened along with share prices.
Q. Why did the fund fall short of its benchmark and peers during the six-month period?
A. Poor stock picking in Mexico and Brazil was primarily responsible. The global collapse of technology, media and telecommunications (TMT) stocks in 2000 made its way into Latin America during the second half of the period. Several of our media and cellular names took the brunt of the hit. Two stocks, TV Azteca - a television broadcasting company in Mexico that also has wireless exposure - and Brazil's Telesp Celular, accounted for more than a quarter of the fund's underperformance. Four others combined for another 35% hit: Globo Cabo - a Brazilian provider of cable TV services; Grupo Iusacell, Mexico's second largest mobile phone operator; Impsat Fiber Networks, an emerging telecommunications company with operations throughout the region; and media company Grupo Televisa all suffered sharp declines. The fund no longer held Impsat Fiber Networks at the close of the period. Our peers tended to own fewer media stocks, which hurt us on a competitive basis. With respect to country positioning, despite being overweighted in Mexico relative to the index, which helped our relative performance, we tended to have less exposure than our Lipper group, which hurt on that front. Finally, having less exposure than the index to Chile - which tends to outperform in a down market - further restrained performance.
Q. Where were you able to gain ground on the index?
A. The decision to gain exposure indirectly to Argentina through Brazil was a net positive for us on a risk/return basis. What we lost by overweighting Brazil, we more than made up for by underweighting Argentina. Even though we lost ground relative to the index with our wireless exposure, we recouped some of our losses by underweighting Brazilian fixed-line carrier Tele Norte Leste and not owning Brasil Telecom. Good positioning in Telefonos de Mexico (Telmex) - the fund's top holding - was a plus. I managed to buck the negative trend in long distance by focusing on higher growth areas. However, poor performance in Telmex's mobile-phone unit, America Movil, which it spun off in 2000, negated some of our advantage. Overweighting consumer staples helped as investors sought out more defensive holdings. Some strong picks among beverage companies, namely Brazil's AmBev and Mexico's Fomento, helped the most.
Q. What's your outlook?
A. Valuations remain attractive given the positive outlook for earnings growth in the region. However, much hinges on the health of Argentina and the direction of the Mexican peso. As long as Argentina's economy continues to stagnate, there likely will be bouts of speculation about its currency being devalued, which could destabilize the economic environment throughout the region.
Note to shareholders: Fidelity Latin America Fund may invest up to 35% of its total assets in any industry which represents more than 20% of the Latin American market. As of April 30, 2001, the fund did not have more than 25% of its total assets invested in any one industry.
Effective June 30, 2001, Margaret Reynolds will become Portfolio Manager of Fidelity Latin America Fund.
The views expressed in this report reflect those of the portfolio manager only through the end of the period of the report as stated on the cover. The manager's views are subject to change at any time based on market or other conditions. For more information, see page 3.
Fund Facts
Goal: seeks long-term growth of capital
Fund number: 349
Trading symbol: FLATX
Start date: April 19, 1993
Size: as of April 30, 2001, more than $254 million
Manager: Patti Satterthwaite, since inception; joined Fidelity in 1986
3Semiannual Report
Latin America
Geographic Diversification (% of fund's net assets) |
|||
As of April 30, 2001 |
|||
Brazil |
40.8% |
|
|
Mexico |
40.0% |
|
|
Chile |
5.3% |
|
|
United States of America |
3.8% |
|
|
Argentina |
2.5% |
|
|
Peru |
2.1% |
|
|
Panama |
2.0% |
|
|
Venezuela |
1.5% |
|
|
Luxembourg |
1.2% |
|
|
Other |
0.8% |
|
As of October 31, 2000 |
|||
Mexico |
44.1% |
|
|
Brazil |
39.7% |
|
|
Chile |
4.5% |
|
|
Argentina |
3.4% |
|
|
United States of America |
3.0% |
|
|
Venezuela |
1.8% |
|
|
Panama |
1.4% |
|
|
Luxembourg |
0.9% |
|
|
Peru |
0.7% |
|
|
Other |
0.5% |
|
Percentages are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation |
||
|
% of fund's |
% of fund's net assets |
Stocks |
96.2 |
97.7 |
Short-Term Investments |
3.8 |
2.3 |
Top Ten Stocks as of April 30, 2001 |
||
|
% of fund's |
% of fund's net assets |
Telefonos de Mexico SA de CV Series L sponsored ADR (Mexico, Diversified Telecommunication Services) |
10.1 |
16.6 |
Companhia de Bebidas das Americas (AmBev) sponsored ADR (Brazil, Beverages) |
8.5 |
7.1 |
Petroleo Brasileiro SA Petrobras (PN) (Brazil, Oil & Gas) |
6.5 |
6.0 |
Wal-Mart de Mexico SA |
6.1 |
6.6 |
Fomento Economico Mexicano SA de CV sponsored ADR |
5.0 |
1.2 |
Grupo Televisa SA de CV sponsored GDR |
4.5 |
5.3 |
Telesp Celular Participacoes SA ADR (Brazil, Wireless Telecommunication Services) |
4.3 |
5.1 |
Banacci SA de CV Series O (Mexico, Banks) |
4.3 |
5.0 |
Uniao de Bancos Brasileiros SA (Unibanco) GDR (Brazil, Banks) |
4.2 |
0.9 |
Companhia Vale do Rio Doce (PN-A) (Brazil, Metals & Mining) |
4.0 |
2.6 |
|
57.5 |
|
Market Sectors as of April 30, 2001 |
||
|
% of fund's |
% of fund's net assets |
Consumer Staples |
24.6 |
16.9 |
Telecommunication Services |
20.7 |
33.4 |
Financials |
14.6 |
13.2 |
Consumer Discretionary |
14.0 |
16.6 |
Energy |
9.0 |
7.8 |
Materials |
7.8 |
6.7 |
Industrials |
3.9 |
2.1 |
Utilities |
1.6 |
0.9 |
Information Technology |
0.0 |
0.1 |
Effective with this report, industry classifications follow the MSCI/S&P Global Industry Classification Standard. This replaces the U.S. Standard Industrial Classification system that is being phased out. Prior period industry percentages reflect the new standard. |
Semiannual Report
Latin America
(Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.2% |
|||
Shares |
Value (Note 1) |
||
Argentina - 2.5% |
|||
Perez Companc SA sponsored ADR |
420,554 |
$ 6,434,476 |
|
Brazil - 40.8% |
|||
Banco Bradesco SA (PN) |
421,762,124 |
2,407,055 |
|
Banco Itau SA (PN) |
73,299,000 |
5,899,920 |
|
Companhia Brasileira de Distribuicao Grupo Pao de Acucar sponsored ADR |
311,200 |
8,853,640 |
|
Companhia de Bebidas das Americas (AmBev) |
589,135 |
139,313 |
|
Companhia de Bebidas das Americas (AmBev): |
|
|
|
warrants 4/30/03 (a) |
1,895,770 |
637,958 |
|
sponsored ADR |
879,726 |
21,465,314 |
|
Companhia Paranaense de Energia-Copel sponsored ADR |
537,500 |
4,165,625 |
|
Companhia Siderurgica Nacional ADR |
78,700 |
1,849,450 |
|
Companhia Vale do Rio Doce (PN-A) |
437,200 |
10,139,700 |
|
Embraer - Empresa Brasileira de Aeronautica SA sponsored ADR |
102,200 |
4,579,582 |
|
Empresa Nacional de Comercio Redito e Participacoes SA (a) |
11,465,310 |
24,766 |
|
Globo Cabo SA sponsored ADR (a) |
149,600 |
830,280 |
|
Petroleo Brasileiro SA Petrobras (PN) |
680,970 |
16,536,516 |
|
Tele Norte Leste Participacoes SA ADR |
178,000 |
3,111,440 |
|
Telesp Celular Participacoes SA ADR |
647,700 |
10,881,360 |
|
Uniao de Bancos Brasileiros SA (Unibanco) GDR |
445,800 |
10,721,490 |
|
Votorantim Celulose e Papel SA |
53,617,499 |
1,487,343 |
|
TOTAL BRAZIL |
103,730,752 |
||
British Virgin Islands - 0.0% |
|||
El Sitio, Inc. (a) |
49,200 |
36,900 |
|
Chile - 5.3% |
|||
Banco Santander Chile sponsored ADR |
139,400 |
2,372,588 |
|
Banco Santiago SA sponsored ADR |
44,300 |
941,375 |
|
Distribucion Y Servicio D&S SA sponsored ADR |
383,400 |
5,559,300 |
|
Embotelladora Andina sponsored ADR Class A |
175,900 |
2,348,265 |
|
Vina Concha Stet y Toro SA |
53,200 |
2,191,840 |
|
TOTAL CHILE |
13,413,368 |
||
Colombia - 0.4% |
|||
Suramericana de Inversiones SA |
1,761,400 |
902,125 |
|
Luxembourg - 1.2% |
|||
Quilmes Industrial SA sponsored ADR |
322,900 |
3,015,886 |
|
Mexico - 40.0% |
|||
America Movil SA de CV |
278,600 |
5,126,240 |
|
Banacci SA de CV Series O |
5,970,000 |
10,880,963 |
|
Corporacion Interamericana de Entretenimiento SA de CV Series B (a) |
783,588 |
2,753,788 |
|
|
|||
Shares |
Value (Note 1) |
||
Fomento Economico Mexicano SA de CV sponsored ADR |
333,000 |
$ 12,720,600 |
|
Grupo Carso SA de CV Series A1 (a) |
2,126,100 |
5,254,882 |
|
Grupo Financiero BBVA Bancomer SA de CV (GFB) Series O (a) |
3,675,000 |
2,945,565 |
|
Grupo Iusacell SA de CV |
505,100 |
4,116,565 |
|
Grupo Televisa SA de CV |
297,100 |
11,298,713 |
|
Telefonos de Mexico SA de CV Series L sponsored ADR |
743,900 |
25,738,941 |
|
TV Azteca SA de CV sponsored ADR |
676,700 |
5,122,619 |
|
Wal-Mart de Mexico SA de CV Series C |
6,953,200 |
15,538,465 |
|
TOTAL MEXICO |
101,497,341 |
||
Panama - 2.0% |
|||
Panamerican Beverages, Inc. Class A |
272,500 |
4,934,975 |
|
Peru - 2.1% |
|||
Compania de Minas Buenaventura SA: |
|
|
|
Class B |
232,618 |
1,752,668 |
|
sponsored ADR |
240,700 |
3,624,942 |
|
TOTAL PERU |
5,377,610 |
||
United Kingdom - 0.4% |
|||
Antofagasta Holdings PLC |
151,300 |
1,108,533 |
|
Venezuela - 1.5% |
|||
Compania Anonima Nacional Telefono de Venezuela sponsored ADR |
169,000 |
3,871,790 |
|
TOTAL COMMON STOCKS (Cost $209,572,524) |
244,323,756 |
Nonconvertible Bonds - 0.0% |
|||||
Moody's Ratings (unaudited) |
Principal Amount |
|
|||
Brazil - 0.0% |
|||||
Companhia Vale do Rio Doce 0% 11/19/01 |
- |
BRL |
290,000 |
0 |
Cash Equivalents - 9.1% |
|||
Shares |
|
||
Fidelity Cash Central Fund, 4.70% (b) |
14,646,378 |
14,646,378 |
|
Fidelity Securities Lending |
8,476,600 |
8,476,600 |
|
TOTAL CASH EQUIVALENTS (Cost $23,122,978) |
23,122,978 |
||
TOTAL INVESTMENT PORTFOLIO - 105.3% (Cost $232,695,502) |
267,446,734 |
||
NET OTHER ASSETS - (5.3)% |
(13,418,924) |
||
NET ASSETS - 100% |
$ 254,027,810 |
Currency Abbreviations |
||
BRL |
- |
Brazilian real |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $99,386,398 and $116,431,956. |
Income Tax Information |
At April 30, 2001, the aggregate cost of investment securities for income tax purposes was $233,884,372. Net unrealized appreciation aggregated $33,562,362, of which $69,881,139 related to appreciated investment securities and $36,318,777 related to depreciated investment securities. |
At October 31, 2000, the fund had a capital loss carryforward of approximately $108,322,000 of which $36,899,000, $37,615,000, $22,657,000 and $11,151,000 will expire on October 31, 2003, 2004, 2007 and 2008, respectively. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Latin America
Statement of Assets and Liabilities
|
April 30, 2001 (Unaudited) |
|
Assets |
|
|
Investment in securities, at value (including securities loaned of $8,194,750) (cost $232,695,502) - See accompanying schedule |
|
$ 267,446,734 |
Receivable for investments sold |
|
2,529,512 |
Receivable for fund shares sold |
|
231,638 |
Dividends receivable |
|
1,887,664 |
Interest receivable |
|
37,087 |
Redemption fees receivable |
|
278 |
Other receivables |
|
8,143 |
Total assets |
|
272,141,056 |
Liabilities |
|
|
Payable for investments purchased |
$ 7,050,795 |
|
Payable for fund shares redeemed |
2,296,313 |
|
Accrued management fee |
151,402 |
|
Other payables and |
138,136 |
|
Collateral on securities loaned, |
8,476,600 |
|
Total liabilities |
|
18,113,246 |
Net Assets |
|
$ 254,027,810 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 331,836,020 |
Undistributed net investment income |
|
3,606,432 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
(116,158,350) |
Net unrealized appreciation (depreciation) on investments |
|
34,743,708 |
Net Assets, for 19,933,954 shares outstanding |
|
$ 254,027,810 |
Net Asset Value and redemption price per share ($254,027,810 ÷ 19,933,954 shares) |
|
$12.74 |
Maximum offering price per share (100/97.00 of $12.74) |
|
$13.13 |
Statement of Operations
|
Six months ended April 30, 2001 (Unaudited) |
|
Investment Income Dividends |
|
$ 5,432,523 |
Special dividend from Companhia Siderurgica Nacional ADR |
|
1,315,415 |
Interest |
|
258,035 |
Security lending |
|
93,823 |
|
|
7,099,796 |
Less foreign taxes withheld |
|
(644,099) |
Total income |
|
6,455,697 |
Expenses |
|
|
Management fee |
$ 1,001,846 |
|
Transfer agent fees |
439,974 |
|
Accounting and security lending fees |
83,241 |
|
Non-interested trustees' compensation |
208 |
|
Custodian fees and expenses |
144,694 |
|
Registration fees |
27,428 |
|
Audit |
25,119 |
|
Legal |
720 |
|
Foreign tax expense |
174,848 |
|
Reports to shareholders |
15,278 |
|
Miscellaneous |
893 |
|
Total expenses before reductions |
1,914,249 |
|
Expense reductions |
(37,826) |
1,876,423 |
Net investment income |
|
4,579,274 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities |
(7,338,677) |
|
Foreign currency transactions |
(425,689) |
(7,764,366) |
Change in net unrealized appreciation (depreciation) on: |
|
|
Investment securities |
(21,840,619) |
|
Assets and liabilities in |
29,737 |
(21,810,882) |
Net gain (loss) |
|
(29,575,248) |
Net increase (decrease) in net assets resulting from operations |
|
$ (24,995,974) |
Other Information |
|
$ 31,944 |
Expense reductions |
|
|
Directed brokerage arrangements |
|
$ 30,787 |
Custodian credits |
|
3,883 |
Transfer agent credits |
|
3,156 |
|
|
$ 37,826 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Latin America
Financial Statements - continued
Statement of Changes in Net Assets
Increase (Decrease) in Net Assets |
Six months ended |
Year ended
October 31, |
Operations |
$ 4,579,274 |
$ 1,589,531 |
Net realized gain (loss) |
(7,764,366) |
(10,759,952) |
Change in net unrealized appreciation (depreciation) |
(21,810,882) |
56,853,164 |
Net increase (decrease) in net assets resulting from operations |
(24,995,974) |
47,682,743 |
Distributions to shareholders from net investment income |
(1,443,649) |
(3,622,710) |
Share transactions |
33,076,550 |
112,558,413 |
Reinvestment of distributions |
1,379,069 |
3,485,627 |
Cost of shares redeemed |
(51,448,614) |
(170,586,236) |
Net increase (decrease) in net assets resulting from share transactions |
(16,992,995) |
(54,542,196) |
Redemption fees |
195,856 |
410,300 |
Total increase (decrease) in net assets |
(43,236,762) |
(10,071,863) |
Net Assets |
|
|
Beginning of period |
297,264,572 |
307,336,435 |
End of period (including undistributed net investment income of $3,606,432 and $470,807, respectively) |
$ 254,027,810 |
$ 297,264,572 |
Other Information Shares |
|
|
Sold |
2,369,584 |
7,397,655 |
Issued in reinvestment of distributions |
107,556 |
239,890 |
Redeemed |
(3,974,463) |
(11,177,420) |
Net increase (decrease) |
(1,497,323) |
(3,539,875) |
Financial Highlights
|
Six months ended |
Years ended October 31, |
||||
Selected Per-Share Data |
(Unaudited) |
2000 |
1999 |
1998 |
1997 |
1996 |
Net asset value, beginning of period |
$ 13.87 |
$ 12.31 |
$ 10.73 |
$ 15.51 |
$ 12.59 |
$ 9.75 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income |
.22 D,G |
.07 D |
.18 D |
.22 D, E |
.20 D |
.22 |
Net realized and unrealized gain (loss) |
(1.29) |
1.61 |
1.61 |
(4.81) |
2.92 |
2.72 |
Total from investment operations |
(1.07) |
1.68 |
1.79 |
(4.59) |
3.12 |
2.94 |
Less Distributions from net investment income |
(.07) |
(.14) |
(.25) |
(.20) |
(.23) |
(.12) |
Redemption fees added to paid in capital |
.01 |
.02 |
.04 |
.01 |
.03 |
.02 |
Net asset value, end of period |
$ 12.74 |
$ 13.87 |
$ 12.31 |
$ 10.73 |
$ 15.51 |
$ 12.59 |
Total Return B, C |
(7.65)% |
13.76% |
17.46% |
(30.01)% |
25.42% |
30.69% |
Ratios and Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 254,028 |
$ 297,265 |
$ 307,336 |
$ 332,240 |
$ 808,542 |
$ 557,889 |
Ratio of expenses to average net assets |
1.42% A |
1.25% |
1.32% |
1.34% |
1.30% |
1.32% |
Ratio of expenses to average net assets |
1.40% A, F |
1.23% F |
1.30% F |
1.33% F |
1.29% F |
1.32% |
Ratio of net investment income to average net assets |
3.41% A |
.44% |
1.55% |
1.49% |
1.19% |
1.48% |
Portfolio turnover rate |
77% A |
51% |
49% |
31% |
64% |
70% |
A Annualized B The total returns would have been lower had certain expenses not been reduced during the periods shown. C Total returns do not include the one time sales charge and for periods of less than one year are not annualized. D Net investment income per share has been calculated based on average shares outstanding during the period. E Investment income per share reflects a special dividend which amounted to $.06 per share. F FMR or the fund has entered into varying arrangements with third parties who either paid or reduced a portion of the fund's expenses. G Investment income per share reflects a special dividend from Companhia Siderurgica Nacional ADR which amounted to $.06 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
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. Total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value). If Fidelity had not reimbursed certain fund expenses, the past five years and life of fund total returns would have been lower.
Cumulative Total Returns
Periods ended |
Past 6 |
Past 1 |
Past 5 |
Life of |
Fidelity Nordic |
-18.68% |
-28.30% |
129.60% |
147.97% |
Fidelity Nordic |
-21.12% |
-30.45% |
122.71% |
140.53% |
FT/S&P-Actuaries World Nordic |
-18.98% |
-36.92% |
122.55% |
136.04% |
European Region Funds Average |
-10.16% |
-17.48% |
66.16% |
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 November 1, 1995. For example, if you had invested $1,000 in a fund that had a 5% return over the past year, the value of your investment would be $1,050. You can compare the fund's returns to the performance of the FT/S&P-Actuaries World Nordic Index - a market capitalization-weighted index of over 95 stocks traded in four Scandinavian markets. To measure how the fund's performance stacked up against its peers, you can compare the fund's performance to the European region funds average, which reflects the performance of mutual funds with similar objectives tracked by Lipper Inc. The past six months average represents a peer group of 174 mutual funds. These benchmarks include reinvested dividends and capital gains, if any, and exclude the effect of sales charges.
Average Annual Total Returns
Periods ended |
|
Past 1 |
Past 5 |
Life of |
Fidelity Nordic |
|
-28.30% |
18.08% |
17.96% |
Fidelity Nordic |
|
-30.45% |
17.37% |
17.30% |
FT/S&P-Actuaries World Nordic |
|
-36.92% |
17.35% |
16.90% |
European Region |
|
-17.48% |
10.47% |
n/a * |
Average annual total returns take the fund's cumulative return and show you what would have happened if the fund had performed at a constant rate each year.
* Not available
$10,000 Over Life of Fund
$10,000 Over Life of Fund: Let's say hypothetically that $10,000 was invested in Fidelity Nordic Fund on November 1, 1995, when the fund started, and the current 3.00% sales charge was paid. As the chart shows, by April 30, 2001, the value of the investment would have grown to $24,053 - a 140.53% increase on the initial investment. For comparison, look at how the FT/S&P-Actuaries World Nordic Index did over the same period. With dividends and capital gains, if any, reinvested, the same $10,000 investment would have grown to $23,604 - a 136.04% 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. Past performance is no guarantee of future results and you may have a gain or loss when you sell your shares.
3Semiannual Report
Nordic
(Portfolio Manager photograph)
An interview with Trygve Toraasen, Portfolio Manager of Fidelity Nordic Fund
Q. How did the fund perform, Trygve?
A. For the six months that ended April 30, 2001, the fund returned -18.68%. The FT/S&P Actuaries World Nordic Index returned -18.98% during the same period, while the European region funds average returned -10.16% according to Lipper Inc. For the 12 months that ended April 30, 2001, the fund fell 28.30%, while the index and peers returned -36.92% and -17.48%, respectively.
Q. What factors hampered the fund's performance during the six-month period?
A. The biggest factor was the extreme volatility we witnessed within the technology, media and telecommunications (TMT) sectors during the period. TMT stocks make up a large portion of the Nordic market, and as fundamentals continued to erode, risk-taking of any kind simply vanished. The fund's underweighted positions in both Nokia and Ericsson helped relative to the index during the period, but the higher concentration of TMT stocks in the Scandinavian countries hurt the fund's performance versus its European competitors.
Q. What was your response to the TMT volatility?
A. I didn't abandon the TMT sector altogether, but I did cut back on a few names that I felt were particularly vulnerable to the volatility. For instance, I reduced the fund's positions in names such as Sweden's OM Gruppen - which makes market-related transaction technologies - as well as GN Store Nordic and Tele Danmark, two of Denmark's leading telecommunications companies. In turn, I focused my attention on defensive-oriented, stable-growth stocks, including several in the pharmaceuticals and banking areas. I added to the fund's investments in Danish drug stock Novo-Nordisk, and also bumped up its exposure to regional bank stocks such as DnB in Norway and Svenska Handelsbanken in Sweden. Each of these strategies worked out fairly well. As of April 30, I had sold off the fund's position in OM Gruppen.
Q. The fund's two weakest performers during the period were Ericsson and Nokia. What held these stocks back?
A. Ericsson and Nokia struggled for different reasons. We expected cellular handset growth to slow dramatically during the period, and it did. But Ericsson's problems were compounded by unexpected weakness in its core infrastructure business. The company's profit margins narrowed significantly as Ericsson failed to win several large orders, and as research and development costs for third-generation networks escalated. The fund did not own a position in Ericsson at the close of the period. Nokia, on the other hand, was still generating positive margins on its handsets, but the stock fell for two reasons - slower global handset demand and a high valuation. As risk-taking faded, investors were unwilling to pay a high price for Nokia. As for me, I'm still optimistic that Nokia can continue to grow. Nokia remained the fund's largest individual position at the end of April.
Q. Which other stocks were disappointing? Which ones performed well during the period?
A. Swedish asset manager Skandia Forsaekrings was another disappointment, as market volatility took a toll on its investing volumes. In terms of positive performers, the fund's investment in Nobel Biocare - a maker of dental implants - fared well, as did its positions in KCI Konecranes, which manufactures industrial cranes, and Danske Bank, a Danish asset manager operating in the underpenetrated Denmark securities market. Norwegian videoconferencing company Tandberg also generated good gains.
Q. What's your outlook, Trygve?
A. It's become clear during the past couple of years that the performance of the TMT sectors play a major role in how the fund performs. That being said, I'll be looking to add more high-quality TMT names to the portfolio during the next few months. The key will be finding the point at which we've seen the worst in terms of earnings downgrades. There are a lot of good TMT stocks out there that have been beaten down, and I think many will bounce back as soon as investors sense that the worst is over.
Note to shareholders: Fidelity Nordic Fund may invest up to 35% of its total assets in any industry that represents more than 20% of the Nordic market. As of April 30, 2001, the fund did not have more than 25% of its total assets invested in any one industry.
The views expressed in this report reflect those of the portfolio manager only through the end of the period of the report as stated on the cover. The manager's views are subject to change at any time based on market or other conditions. For more information, see page 3.
Fund Facts
Goal: long-term growth of capital by investing mainly in equity securities of issuers in Denmark, Finland, Norway and Sweden
Fund number: 342
Trading symbol: FNORX
Start date: November 1, 1995
Size: as of April 30, 2001, more than $143 million
Manager: Trygve Toraasen, since 1998; associate portfolio manager, Fidelity Nordic Fund, 1997-1998; research analyst, 1994-1998; joined Fidelity in 1994
3
Semiannual Report
Nordic
Geographic Diversification (% of fund's net assets) |
|||
As of April 30, 2001 |
|||
Sweden |
33.6% |
|
|
Denmark |
29.8% |
|
|
Finland |
17.0% |
|
|
Norway |
14.6% |
|
|
United States of America |
3.0% |
|
|
United Kingdom |
1.2% |
|
|
Luxembourg |
0.8% |
|
As of October 31, 2000 |
|||
Sweden |
38.3% |
|
|
Denmark |
25.2% |
|
|
Finland |
19.6% |
|
|
Norway |
13.1% |
|
|
United States of America |
3.1% |
|
|
Luxembourg |
0.7% |
|
Percentages are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation |
||
|
% of fund's |
% of fund's net assets |
Stocks |
98.0 |
99.6 |
Short-Term Investments |
2.0 |
0.4 |
Top Ten Stocks as of April 30, 2001 |
||
|
% of fund's |
% of fund's net assets |
Nokia AB (Finland, Communications Equipment) |
10.3 |
12.0 |
Svenska Handelsbanken AB |
4.9 |
3.5 |
Vestas Wind Systems AS (Denmark, Electrical Equipment) |
4.9 |
5.1 |
Novo-Nordisk AS Series B (Denmark, Pharmaceuticals) |
4.3 |
3.6 |
Nordea AB (Sweden, Banks) |
4.0 |
4.8 |
Danske Bank AS |
3.4 |
1.4 |
DnB Holding ASA |
3.2 |
1.9 |
Assa Abloy AB (B Shares) (Sweden, Building Products) |
2.6 |
1.4 |
Securitas AB (B Shares) |
2.4 |
1.9 |
NEG Micon AS |
2.3 |
1.7 |
|
42.3 |
|
Market Sectors as of April 30, 2001 |
||
|
% of fund's |
% of fund's net assets |
Industrials |
27.8 |
16.5 |
Financials |
19.8 |
20.7 |
Information Technology |
19.5 |
35.7 |
Health Care |
14.5 |
9.1 |
Consumer Discretionary |
4.4 |
3.5 |
Consumer Staples |
3.9 |
1.5 |
Energy |
3.1 |
3.1 |
Telecommunication Services |
3.1 |
7.0 |
Materials |
1.9 |
2.5 |
Effective with this report, industry classifications follow the MSCI/S&P Global Industry Classification Standard. This replaces the U.S. Standard Industrial Classification system that is being phased out. Prior period industry percentages reflect the new standard. |
Semiannual Report
Nordic
(Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.0% |
|||
Shares |
Value (Note 1) |
||
Denmark - 29.8% |
|||
2M Invest AS (a) |
74,045 |
$ 849,185 |
|
Bang & Olufsen Holding AS Series B |
21,200 |
692,864 |
|
Carlsberg AS Series B |
19,490 |
875,554 |
|
Coloplast AS (B Shares) |
39,300 |
1,938,296 |
|
Danisco AS |
23,725 |
821,910 |
|
Danske Bank AS |
304,020 |
4,895,769 |
|
GN Store Nordic AS |
64,935 |
833,455 |
|
Group 4 Falck AS |
24,635 |
2,869,182 |
|
H. Lundbeck AS |
63,980 |
1,467,510 |
|
ISS AS (a) |
35,485 |
2,066,428 |
|
Kobenhaven Lufthave AS |
19,275 |
1,763,862 |
|
NEG Micon AS (a) |
79,550 |
3,233,298 |
|
Novo-Nordisk AS Series B |
163,595 |
6,221,562 |
|
Novozymes AS Series B |
118,734 |
2,384,741 |
|
RTX Telecom AS |
15,800 |
503,236 |
|
Sydbank AS |
10,830 |
585,625 |
|
Tele Danmark AS |
36,330 |
1,381,640 |
|
Vestas Wind Systems AS |
150,230 |
7,016,631 |
|
William Demant Holding AS |
71,925 |
2,325,028 |
|
TOTAL DENMARK |
42,725,776 |
||
Finland - 17.0% |
|||
Amer Group PLC (A Shares) |
28,900 |
654,335 |
|
Comptel Oyj |
63,200 |
693,599 |
|
Elisa Communications Corp. (A Shares) |
58,097 |
940,672 |
|
KCI Konecranes |
68,535 |
2,188,953 |
|
Kone Oyj (B Shares) |
10,600 |
710,026 |
|
Nokia AB |
433,695 |
14,828,029 |
|
Okobank (A Shares) |
23,180 |
264,675 |
|
Outokumpu Oyj (A Shares) |
40,500 |
344,943 |
|
Pohjola Group Insurance Corp. |
12,400 |
255,780 |
|
Sonera Corp. |
152,500 |
1,687,166 |
|
Teleste Oyj |
37,300 |
383,874 |
|
Vacon Oyj |
119,700 |
1,088,528 |
|
Wartsila Oyj (B Shares) |
14,200 |
318,106 |
|
TOTAL FINLAND |
24,358,686 |
||
Luxembourg - 0.8% |
|||
Metro International SA: |
|
|
|
Swedish Depositary Receipt (A Shares) unit (a) |
16,230 |
79,117 |
|
Swedish Depositary Receipt (B Shares) unit (a) |
37,870 |
201,220 |
|
Stolt Offshore SA (a) |
66,310 |
918,431 |
|
TOTAL LUXEMBOURG |
1,198,768 |
||
Norway - 14.6% |
|||
Det Sondenfjelds-Norske Dampskibselskab Series A (a) |
51,500 |
189,082 |
|
DnB Holding ASA |
1,039,395 |
4,570,226 |
|
Orkla-Borregaard AS |
153,385 |
2,824,195 |
|
ProSafe ASA (a) |
113,345 |
1,781,704 |
|
|
|||
Shares |
Value (Note 1) |
||
Sparebanken NOR |
76,160 |
$ 2,101,347 |
|
Tandberg ASA (a) |
215,685 |
2,655,431 |
|
TANDBERG Television ASA (a) |
150,950 |
1,227,897 |
|
TGS Nopec Geophysical Co. ASA (a) |
100,100 |
1,683,537 |
|
Tomra Systems AS |
97,880 |
1,549,364 |
|
VMETRO ASA |
209,105 |
2,344,561 |
|
TOTAL NORWAY |
20,927,344 |
||
Sweden - 33.6% |
|||
Assa Abloy AB (B Shares) |
214,502 |
3,732,925 |
|
Atlas Copco AB (A Shares) |
68,500 |
1,515,989 |
|
Capio AB (a) |
229,760 |
1,680,023 |
|
Eniro AB |
111,330 |
1,345,902 |
|
Getinge Industrier AB |
6,255 |
100,317 |
|
Getinge Industrier AB (B Shares) |
91,935 |
1,505,809 |
|
Gunnebo AB |
46,500 |
437,482 |
|
Hennes & Mauritz AB (H&M) (B Shares) |
110,240 |
1,859,366 |
|
HQ.SE Holding AB |
79,100 |
219,786 |
|
Industrial & Financial Systems AB (IFS) (a) |
4,500 |
11,056 |
|
JM AB (B Shares) |
37,815 |
844,266 |
|
Karo Bio AB (a) |
1,725 |
58,474 |
|
LGP Telecom Holding AB |
29,800 |
412,557 |
|
Micronic Laser Systems AB (a) |
27,700 |
550,921 |
|
Modern Times Group AB (MTG) |
27,000 |
802,866 |
|
Munters AB |
157,780 |
2,491,992 |
|
Munters AB (c) |
8,300 |
131,091 |
|
Nobel Biocare AB |
59,660 |
2,268,441 |
|
Nordea AB |
943,700 |
5,704,339 |
|
Observer AB (B Shares) |
174,336 |
1,461,723 |
|
Perbio Science AB (a) |
15,400 |
186,175 |
|
POOLiA AB: |
|
|
|
(B Shares) |
58,500 |
536,122 |
|
(B Shares) (c) |
23,400 |
214,449 |
|
Proffice AB (B Shares) |
31,100 |
105,516 |
|
Q-Medical AB (a) |
66,160 |
1,354,548 |
|
Readsoft AB (B Shares) |
376,160 |
1,338,582 |
|
Sandvik AB |
64,300 |
1,491,996 |
|
Securitas AB (B Shares) |
177,325 |
3,448,995 |
|
Skandia Foersaekrings AB |
240,935 |
2,619,114 |
|
Skanska AB (B Shares) |
41,310 |
1,610,997 |
|
Svenska Handelsbanken AB (A Shares) |
475,516 |
7,093,102 |
|
Swedish Match Co. |
225,100 |
985,375 |
|
TV 4 AB (A Shares) |
1,700 |
38,949 |
|
TOTAL SWEDEN |
48,159,245 |
||
United Kingdom - 1.2% |
|||
AstraZeneca PLC (Sweden) |
38,450 |
1,799,357 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
United States of America - 1.0% |
|||
InFocus Corp. (a) |
41,840 |
$ 816,298 |
|
Royal Caribbean Cruises Ltd. |
30,180 |
610,428 |
|
TOTAL UNITED STATES OF AMERICA |
1,426,726 |
||
TOTAL COMMON STOCKS (Cost $123,658,327) |
140,595,902 |
||
Cash Equivalents - 18.0% |
|||
|
|
|
|
Fidelity Cash Central Fund, 4.70% (b) |
3,098,410 |
3,098,410 |
|
Fidelity Securities Lending |
22,715,110 |
22,715,110 |
|
TOTAL CASH EQUIVALENTS (Cost $25,813,520) |
25,813,520 |
||
TOTAL INVESTMENT PORTFOLIO - 116.0% (Cost $149,471,847) |
166,409,422 |
||
NET OTHER ASSETS - (16.0)% |
(22,999,534) |
||
NET ASSETS - 100% |
$ 143,409,888 |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(c) 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 $345,540 or 0.2% of net assets. |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $98,038,652 and $120,706,188, respectively. |
Income Tax Information |
At April 30, 2001, the aggregate cost of investment securities for income tax purposes was $153,310,615. Net unrealized appreciation aggregated $13,098,807, of which $24,845,466 related to appreciated investment securities and $11,746,659 related to depreciated investment securities. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Nordic
Statement of Assets and Liabilities
|
April 30, 2001 (Unaudited) |
|
Assets |
|
|
Investment in securities, at value (including securities loaned of $21,471,912) (cost $149,471,847) - See accompanying schedule |
|
$ 166,409,422 |
Foreign currency held at value |
|
9,274 |
Receivable for investments sold |
|
1,933,300 |
Receivable for fund shares sold |
|
60,982 |
Dividends receivable |
|
674,758 |
Interest receivable |
|
19,170 |
Redemption fees receivable |
|
363 |
Other receivables |
|
38,547 |
Total assets |
|
169,145,816 |
Liabilities |
|
|
Payable for investments purchased |
$ 2,663,476 |
|
Payable for fund shares redeemed |
181,308 |
|
Accrued management fee |
82,840 |
|
Other payables and |
93,194 |
|
Collateral on securities loaned, |
22,715,110 |
|
Total liabilities |
|
25,735,928 |
Net Assets |
|
$ 143,409,888 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 132,839,226 |
Undistributed net investment income |
|
911,866 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
(7,266,055) |
Net unrealized appreciation (depreciation) on investments |
|
16,924,851 |
Net Assets, for 6,549,387 shares outstanding |
|
$ 143,409,888 |
Net Asset Value and redemption price per share ($143,409,888 ÷ 6,549,387 shares) |
|
$21.90 |
Maximum offering price per share (100/97.00 of $21.90) |
|
$22.58 |
Statement of Operations
|
Six months ended April 30, 2001 (Unaudited) |
|
Investment Income Dividends |
|
$ 2,006,266 |
Interest |
|
163,818 |
Security lending |
|
74,422 |
|
|
2,244,506 |
Less foreign taxes withheld |
|
(297,298) |
Total income |
|
1,947,208 |
Expenses |
|
|
Management fee |
$ 618,455 |
|
Transfer agent fees |
240,459 |
|
Accounting and security lending fees |
51,271 |
|
Non-interested trustees' compensation |
331 |
|
Custodian fees and expenses |
87,593 |
|
Registration fees |
17,446 |
|
Audit |
22,631 |
|
Legal |
481 |
|
Reports to shareholders |
6,230 |
|
Miscellaneous |
597 |
|
Total expenses before reductions |
1,045,494 |
|
Expense reductions |
(40,596) |
1,004,898 |
Net investment income |
|
942,310 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities |
(5,959,925) |
|
Foreign currency transactions |
(77,383) |
(6,037,308) |
Change in net unrealized appreciation (depreciation) on: |
|
|
Investment securities |
(30,925,874) |
|
Assets and liabilities in |
(13,973) |
(30,939,847) |
Net gain (loss) |
|
(36,977,155) |
Net increase (decrease) in net assets resulting from operations |
|
$ (36,034,845) |
Other Information |
|
|
Sales charges paid to FDC |
|
$ 49,896 |
Expense reductions |
|
|
Directed brokerage arrangements |
|
$ 39,116 |
Transfer agent credits |
|
1,480 |
|
|
$ 40,596 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Nordic
Financial Statements - continued
Statement of Changes in Net Assets
Increase (Decrease) in Net Assets |
Six months ended |
Year ended
October 31, |
Operations |
$ 942,310 |
$ 383,124 |
Net realized gain (loss) |
(6,037,308) |
1,695,960 |
Change in net unrealized appreciation (depreciation) |
(30,939,847) |
14,257,351 |
Net increase (decrease) in net assets resulting from operations |
(36,034,845) |
16,336,435 |
Distributions to shareholders |
(215,474) |
(328,657) |
From net realized gain |
(351,350) |
(2,464,859) |
In excess of net realized gain |
(1,228,747) |
- |
Total distributions |
(1,795,571) |
(2,793,516 |
Share transactions |
12,125,415 |
173,779,022 |
Reinvestment of distributions |
1,744,124 |
2,711,386 |
Cost of shares redeemed |
(33,530,344) |
(100,985,399) |
Net increase (decrease) in net assets resulting from share transactions |
(19,660,805) |
75,505,009 |
Redemption fees |
28,727 |
436,839 |
Total increase (decrease) in net assets |
(57,462,494) |
89,484,767 |
Net Assets |
|
|
Beginning of period |
200,872,382 |
111,387,615 |
End of period (including undistributed net investment income of $911,866 and $274,249, respectively) |
$ 143,409,888 |
$ 200,872,382 |
Other Information Shares |
|
|
Sold |
492,368 |
5,701,728 |
Issued in reinvestment of distributions |
67,576 |
101,817 |
Redeemed |
(1,397,905) |
(3,368,571) |
Net increase (decrease) |
(837,961) |
2,434,974 |
Financial Highlights
|
Six months ended |
Years ended October 31, |
||||
Selected Per-Share Data |
(Unaudited) |
2000 |
1999 |
1998 |
1997 |
1996 F |
Net asset value, beginning of period |
$ 27.19 |
$ 22.49 |
$ 16.26 |
$ 15.94 |
$ 12.77 |
$ 10.00 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income D |
.13 |
.05 |
.07 |
.03 |
.10 |
.17 E |
Net realized and unrealized gain (loss) |
(5.17) |
5.10 |
6.14 |
1.46 |
3.19 |
2.57 |
Total from investment operations |
(5.04) |
5.15 |
6.21 |
1.49 |
3.29 |
2.74 |
Less Distributions |
|
|
|
|
|
|
From net investment income |
(.03) |
(.06) |
- |
(.07) |
(.05) |
- |
From net realized gain |
(.05) |
(.45) |
- |
(1.18) |
(.10) |
- |
In excess of net realized gain |
(.17) |
- |
- |
- |
- |
- |
Total distributions |
(.25) |
(.51) |
- |
(1.25) |
(.15) |
- |
Redemption fees added to paid in capital |
.00 |
.06 |
.02 |
.08 |
.03 |
.03 |
Net asset value, end of period |
$ 21.90 |
$ 27.19 |
$ 22.49 |
$ 16.26 |
$ 15.94 |
$ 12.77 |
Total Return B, C |
(18.68)% |
23.21% |
38.31% |
10.99% |
26.24% |
27.70% |
Ratios and Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 143,410 |
$ 200,872 |
$ 111,388 |
$ 101,858 |
$ 73,278 |
$ 30,871 |
Ratio of expenses to average net assets |
1.26% A |
1.17% |
1.27% |
1.35% |
1.42% |
2.00% G |
Ratio of expenses to average net assets |
1.21% A, H |
1.15% H |
1.23% H |
1.35% |
1.42% |
2.00% |
Ratio of net investment income to average net assets |
1.14% A |
.18% |
.37% |
.20% |
.67% |
1.52% |
Portfolio turnover rate |
121% A |
80% |
70% |
69% |
74% |
35% |
A Annualized
B The total returns would have been lower had certain expenses not been reduced during the periods shown.
C Total returns do not include the one time sales charge and for periods of less than one year are not annualized.
D Net investment income per share has been calculated based on average shares outstanding during the period.
E Investment income per share reflects a special dividend which amounted to $.16 per share.
F For the period November 1, 1995 (commencement of operations) to October 31, 1996.
G FMR agreed to reimburse a portion of the fund's expenses during the period. Without this reimbursement, the fund's expense ratio would have been higher.
H FMR or the fund has entered into varying arrangements with third parties who either paid or reduced a portion of the fund's expenses.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
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. Total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value). If Fidelity had not reimbursed certain fund expenses, the past 10 year total return would have been lower.
Cumulative Total Returns
Periods ended |
Past 6 |
Past 1 |
Past 5 |
Past 10 |
Fidelity Pacific Basin |
-12.45% |
-27.18% |
13.25% |
65.17% |
Fidelity Pacific Basin |
-15.08% |
-29.36% |
9.85% |
60.21% |
MSCI AC Pacific Free |
-9.73% |
-24.40% |
-29.91% |
-1.85% |
MSCI Pacific |
-10.23% |
-22.38% |
-26.01% |
0.98% |
Pacific Region |
-11.68% |
-29.66% |
-23.90% |
48.89% |
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 10 years. For example, if you had invested $1,000 in a fund that had a 5% return over the past year, the value of your investment would be $1,050. You can compare the fund's returns to the performance of the MSCI All Country Pacific Free Index - a market capitalization-weighted index of approximately 621 stocks traded in twelve Developed and Emerging Pacific-region markets and the performance of the MSCI Pacific Index - a market weighted index of approximately 400 stocks traded in six Pacific-region markets. To measure how the fund's performance stacked up against its peers, you can compare it to the Pacific region funds average, which reflects the performance of mutual funds with similar objectives tracked by Lipper Inc. The past six months average represents a peer group of 73 mutual funds. These benchmarks include reinvested dividends and capital gains, if any, and exclude the effect of sales charges.
Average Annual Total Returns
Periods ended |
Past 1 |
Past 5 |
Past 10 |
Fidelity Pacific Basin |
-27.18% |
2.52% |
5.15% |
Fidelity Pacific Basin |
-29.36% |
1.90% |
4.83% |
MSCI AC Pacific Free |
-24.40% |
-6.86% |
-0.19% |
MSCI Pacific |
-22.38% |
-5.85% |
0.10% |
Pacific Region Funds Average |
-29.66% |
-5.94% |
3.80% |
Average annual total returns take the fund's cumulative return and show you what would have happened if the fund had performed at a constant rate each year.
$10,000 Over 10 Years
$10,000 Over 10 Years: Let's say hypothetically that $10,000 was invested in Fidelity Pacific Basin Fund on April 30, 1991, and the current 3.00% sales charge was paid. As the chart shows, by April 30, 2001, the value of the investment would have grown to $16,021 - a 60.21% increase on the initial investment. For comparison, look at how both the Morgan Stanley Capital International All Country Pacific Free Index and the MSCI Pacific Index did over the same period. With dividends and capital gains, if any, reinvested, the same $10,000 would have been $9,815 - a 1.85% decrease and $10,098 - a 0.98% increase, respectively. Beginning with this report, the fund will compare its performance to that of the MSCI All Country Pacific Free Index rather than the MSCI Pacific Index. The MSCI All Country Pacific Free Index more closely reflects the fund's investment strategy.
Understanding Performance
Many markets around the globe offer the potential for significant growth over time; however, investing in foreign markets means assuming greater risks than investing in the United States. Factors like changes in a country's financial markets, its local political and economic climate, and the fluctuating value of its currency create these risks. For these reasons an international fund's performance may be more volatile than a fund that invests exclusively in the United States. Past performance is no guarantee of future results and you may have a gain or loss when you sell your shares.
3Semiannual Report
Pacific Basin
(Portfolio Manager photograph)
An interview with William Kennedy, Portfolio Manager of Fidelity Pacific Basin Fund
Q. How did the fund perform, Bill?
A. For the six months ending April 30, 2001, the fund returned -12.45%, trailing the -11.68% mark posted by the Pacific region funds average as measured by Lipper Inc. The fund also lagged the -10.23% return of the Morgan Stanley Capital International (MSCI) Pacific Index. Effective April 1, 2001, the fund changed the index against which its performance is compared to the MSCI All Country (AC) Pacific Free Index - which returned -9.73%. For the 12 months ending April 30, 2001, the fund returned -27.18%, compared with -29.66%, -22.38% and -24.40% for the Lipper average, MSCI Pacific Index and MSCI All Country Pacific Free Index, respectively.
Q. What is the reason for the index change?
A. The MSCI AC Pacific Free Index tracks the same markets as the old index, as well as seven additional Pacific region emerging-market countries not included in the old index. Thus, the new index is broader in scope and more representative of the fund's investment universe.
Q. Why did the fund underperform the Lipper average and the MSCI benchmarks during the period?
A. Stock selection in Japan was one negative influence. The fund had a relatively heavier exposure to Japanese technology stocks, which detracted from performance. The technology sector declined sharply due to slackening worldwide demand. Even the U.S. economy, which served as a bastion of strength during the Asian financial crisis several years ago, slowed dramatically. Also detracting from performance compared with the benchmarks was an overweighted position in Hong Kong property stocks. Although this sector strongly outperformed in many previous cycles of falling interest rates, its response to declining rates during the period was relatively muted. In retrospect, I believe the explanation lies in the weak performance of the Japanese yen. A weaker yen represents a competitive threat to Hong Kong companies. However, the Hong Kong dollar is pegged to the U.S. dollar at a fixed exchange rate rather than floating freely. Since its currency cannot adjust to fluctuations in the yen, Hong Kong can remain competitive with Japan in the face of a falling yen only if asset prices in Hong Kong fall enough to attract more investment capital. This downward pressure on Hong Kong assets such as real estate and stocks kept a lid on property stocks. In addition, my decision to increase the fund's holdings of Hong Kong property stocks at the beginning of 2001 coincided with a loss of upward momentum in those stocks.
Q. What stocks helped the fund's performance?
A. South Korean holding Samsung Electronics was the top contributor during the period. The company, which makes DRAM (dynamic random access memory) for personal computers, had declined sharply before the period began but saw a strong rebound in its share price coupled with an improving inventory situation. Another beneficial holding, Japanese car maker Nissan Motor, was helped by a comprehensive restructuring plan put in place by new management from French auto maker Renault, which recently acquired a significant stake in Nissan. Honda Motor also did well, buoyed by the weak yen and increased market share in the United States.
Q. What stocks detracted from performance?
A. All of the fund's biggest detractors were Japanese stocks. For example, Toyoda Gosei, one of only a handful of manufacturers of light-emitting diodes (LEDs) in the world, was beset by patent infringement lawsuits and the slowdown in cellular handset growth. Furukawa Electric, a maker of fiber-optic and WDM (wave division multiplexing) equipment, saw demand for its products fall along with the sudden plunge in capital expenditures by telecommunication services providers. The fund did not own Furukawa Electric at the end of the period. Takeda Chemical, a large pharmaceutical company, did poorly due in part to investors' preference for defensive holdings over growth stocks.
Q. What's your outlook, Bill?
A. Most Pacific Basin economies are very vulnerable to what's going on in the rest of the world, especially in the U.S. Their exports require healthy demand from abroad. If the U.S. economy can stabilize, growth stocks in the Pacific Basin could continue to benefit from the constructive trends evident near the end of the period. On the other hand, a U.S. recession likely would result in a further contraction of demand and more volatility for stock prices. In this environment, I believe that the fund's emphasis on acquiring the stocks of high-quality growth companies at reasonable prices is especially appropriate.
The views expressed in this report reflect those of the portfolio manager only through the end of the period of the report as stated on the cover. The manager's views are subject to change at any time based on market or other conditions. For more information, see page 3.
Fund Facts
Goal: long-term growth of capital by investing mainly in equity securities of Pacific Basin issuers
Fund number: 302
Trading symbol: FPBFX
Start date: October 1, 1986
Size: as of April 30, 2001, more than
$413 million
Manager: William Kennedy, since 1998; manager, Fidelity Advisor Japan Fund, since 2000; Hong Kong research director, 1996-1998; analyst, regional power sector and Indian companies, 1994-1996; joined Fidelity in 1994
3Semiannual Report
Pacific Basin
Geographic Diversification (% of fund's net assets) |
|||
As of April 30, 2001 |
|||
Japan |
55.5% |
|
|
Hong Kong |
14.1% |
|
|
Australia |
10.8% |
|
|
Taiwan |
5.4% |
|
|
Korea (South) |
4.8% |
|
|
United States of America |
3.6% |
|
|
Singapore |
3.6% |
|
|
India |
0.8% |
|
|
Malaysia |
0.6% |
|
|
Other |
0.8% |
|
|
|||
As of October 31, 2000 |
|||
Japan |
60.1% |
|
|
Hong Kong |
11.0% |
|
|
Australia |
8.7% |
|
|
United States of America |
7.9% |
|
|
Singapore |
4.1% |
|
|
Korea (South) |
3.1% |
|
|
Taiwan |
1.9% |
|
|
India |
1.6% |
|
|
Malaysia |
0.7% |
|
|
Other |
0.9% |
|
Percentages are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation |
||
|
% of fund's |
% of fund's net assets |
Stocks |
96.6 |
92.1 |
Short-Term Investments |
3.4 |
7.9 |
Top Ten Stocks as of April 30, 2001 |
||
|
% of fund's |
% of fund's net assets |
Toyota Motor Corp. |
4.3 |
4.2 |
Sony Corp. |
3.5 |
3.2 |
Nomura Securities Co. Ltd. (Japan, Diversified Financials) |
3.2 |
1.3 |
Nissan Motor Co. Ltd. |
2.6 |
0.0 |
Sun Hung Kai Properties Ltd. (Hong Kong, Real Estate) |
2.2 |
0.7 |
Takeda Chemical Industries Ltd. (Japan, Pharmaceuticals) |
1.9 |
3.2 |
News Corp. Ltd. |
1.8 |
1.9 |
Canon, Inc. |
1.8 |
2.0 |
Samsung Electronics Co. Ltd. (Korea (South), Semiconductor Equipment & Products) |
1.6 |
0.6 |
Sumitomo Mitsui Banking Corp. (Japan, Banks) |
1.6 |
2.5 |
|
24.5 |
|
Market Sectors as of April 30, 2001 |
||
|
% of fund's |
% of fund's net assets |
Financials |
31.7 |
21.2 |
Consumer Discretionary |
22.6 |
23.5 |
Information Technology |
21.7 |
17.8 |
Health Care |
4.9 |
7.7 |
Telecommunication Services |
4.8 |
7.2 |
Industrials |
4.1 |
10.5 |
Consumer Staples |
3.2 |
1.3 |
Materials |
2.1 |
2.3 |
Utilities |
1.0 |
0.5 |
Energy |
0.5 |
0.1 |
Effective with this report, industry classifications follow the MSCI/S&P Global Industry Classification Standard. This replaces the U.S. Standard Industrial Classification system that is being phased out. Prior period industry percentages reflect the new standard. |
Semiannual Report
Pacific Basin
(Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.6% |
|||
Shares |
Value (Note 1) |
||
Australia - 10.8% |
|||
AMP Ltd. |
356,000 |
$ 3,648,644 |
|
Australian Gas Light Co. |
295,613 |
1,598,187 |
|
BHP Ltd. |
554,725 |
6,117,465 |
|
Billabong International Ltd. |
709,200 |
1,860,759 |
|
Brambles Industries Ltd. |
34,053 |
870,603 |
|
BRL Hardy Ltd. |
148,194 |
698,667 |
|
Cochlear Ltd. |
114,400 |
2,249,531 |
|
Commonwealth Bank of Australia |
149,200 |
2,205,035 |
|
Fosters Brewing Group Ltd. |
998,088 |
2,521,548 |
|
Mayne Nickless Ltd. |
164,600 |
539,414 |
|
National Australia Bank Ltd. |
296,558 |
4,574,332 |
|
News Corp. Ltd. |
780,616 |
7,431,463 |
|
Perpetual Trustees Australia Ltd. |
122,100 |
2,496,549 |
|
QBE Insurance Group Ltd. |
394,164 |
2,282,480 |
|
SONIC HEALTHCARE LTD |
321,082 |
1,342,634 |
|
Tabcorp Holdings Ltd. |
246,900 |
1,190,590 |
|
Telstra Corp. Ltd. |
751,200 |
2,567,633 |
|
Westfield Holdings Ltd. |
81,900 |
520,424 |
|
TOTAL AUSTRALIA |
44,715,958 |
||
Cayman Islands - 0.1% |
|||
Greencool Technology Holdings Ltd. |
1,376,100 |
414,642 |
|
China - 0.1% |
|||
Travelsky Technology Ltd. (H Shares) |
632,000 |
425,434 |
|
Hong Kong - 14.1% |
|||
Amoy Properties Ltd. |
1,372,000 |
1,424,934 |
|
APT Satellite Holdings Ltd. |
325,000 |
134,391 |
|
Asia Satellite Telecommunications Holdings Ltd. |
630,000 |
1,433,819 |
|
ASM Pacific Technology Ltd. |
714,000 |
1,222,180 |
|
Cheung Kong Holdings Ltd. |
422,000 |
4,707,466 |
|
China Mobile (Hong Kong) Ltd. (a) |
1,070,500 |
5,421,012 |
|
CNOOC Ltd. |
1,972,000 |
1,909,015 |
|
Dah Sing Financial Holdings Ltd. |
287,600 |
1,567,232 |
|
Dairy Farm International Holdings Ltd. |
3,666,800 |
1,906,736 |
|
DAO Heng Bank Group Ltd. |
328,000 |
2,439,256 |
|
Esprit Holdings Ltd. |
1,300,000 |
1,475,170 |
|
Hang Seng Bank Ltd. |
289,600 |
3,416,189 |
|
Henderson Land Development Co. Ltd. |
504,000 |
2,313,498 |
|
Hong Kong & China Gas Co. Ltd. |
1,291,400 |
1,539,924 |
|
Hutchison Whampoa Ltd. |
605,700 |
6,543,092 |
|
Hysan Development Ltd. |
50,000 |
68,598 |
|
JCG Holdings Ltd. |
1,904,000 |
1,061,969 |
|
Johnson Electric Holdings Ltd. |
1,208,000 |
2,269,134 |
|
Li & Fung Ltd. |
1,012,000 |
1,920,427 |
|
Sun Hung Kai Properties Ltd. |
964,000 |
8,961,290 |
|
Swire Pacific Ltd. (A Shares) |
345,500 |
1,904,899 |
|
Television Broadcasts Ltd. |
310,000 |
1,566,078 |
|
Wharf Holdings Ltd. |
906,000 |
2,125,861 |
|
Wing Hang Bank Ltd. |
268,000 |
1,061,815 |
|
TOTAL HONG KONG |
58,393,985 |
||
|
|||
Shares |
Value (Note 1) |
||
India - 0.8% |
|||
Dr. Reddy's Laboratories Ltd. |
87,900 |
$ 2,104,608 |
|
Hughes Software Systems Ltd. |
27,800 |
444,450 |
|
Infosys Technologies Ltd. |
10,860 |
864,302 |
|
TOTAL INDIA |
3,413,360 |
||
Indonesia - 0.2% |
|||
Gudang Garam PT Perusahaan |
320,000 |
315,862 |
|
Sampoerna, Hanjaya Mandala |
570,500 |
612,305 |
|
TOTAL INDONESIA |
928,167 |
||
Japan - 55.5% |
|||
Access Co. Ltd. |
2 |
58,721 |
|
Advantest Corp. |
17,800 |
2,068,563 |
|
Aeon Credit Service Ltd. |
64,200 |
3,511,881 |
|
Alps Electric Co. Ltd. |
201,000 |
2,426,514 |
|
Anritsu Corp. |
86,000 |
1,395,800 |
|
Asahi Breweries Ltd. |
157,000 |
1,782,029 |
|
Canon, Inc. |
182,000 |
7,270,900 |
|
Chiba Bank Ltd. |
405,000 |
1,527,889 |
|
Credit Saison Co. Ltd. |
123,000 |
2,637,884 |
|
CSK Corp. |
45,000 |
1,439,316 |
|
Daito Trust Construction Co. |
35,500 |
611,402 |
|
Daiwa Securities Group, Inc. |
391,000 |
4,489,353 |
|
Fuji Heavy Industries Ltd. |
346,000 |
2,551,025 |
|
Fuji Machine Manufacturing Co. Ltd. |
64,200 |
1,679,595 |
|
Fuji Photo Film Co. Ltd. |
84,000 |
3,430,738 |
|
Fuji Soft ABC, Inc. |
29,400 |
1,682,991 |
|
Fujitsu Broad Solution & Consulting, Inc. |
12,200 |
405,223 |
|
Fujitsu Ltd. |
146,000 |
2,035,545 |
|
Hino Motors Ltd. (a) |
216,000 |
1,000,878 |
|
Hitachi Chemical Co. Ltd. |
75,000 |
1,223,418 |
|
Hitachi Information Systems Co. Ltd. |
54,000 |
1,545,604 |
|
Hitachi Ltd. |
217,000 |
2,139,620 |
|
Honda Motor Co. Ltd. (a) |
124,000 |
5,103,220 |
|
Hoya Corp. |
61,800 |
4,105,371 |
|
Ines Corp. |
78,600 |
824,465 |
|
JAFCO Co. Ltd. |
46,600 |
5,572,145 |
|
Japan Medical Dynamic Marketing, Inc. |
57,400 |
2,612,666 |
|
Japan Telecom Co. Ltd. |
51 |
861,621 |
|
Kao Corp. |
96,000 |
2,472,179 |
|
Kappa Create Co. Ltd. |
58,400 |
2,634,235 |
|
Konami Corp. |
56,500 |
2,747,781 |
|
Konica Corp. (a) |
196,000 |
1,359,895 |
|
Kose Corp. |
17,400 |
606,481 |
|
Kyocera Corp. |
25,800 |
2,551,362 |
|
Kyorin Pharmaceutical Co. Ltd. (a) |
10,000 |
362,494 |
|
Matsushita Electric Industrial Co. Ltd. |
155,000 |
2,579,200 |
|
Mitsubishi Electric Corp. |
306,000 |
1,857,086 |
|
Mitsubishi Tokyo Financial Group, Inc. |
335 |
3,450,500 |
|
Mizuho Holdings, Inc. |
634 |
3,956,880 |
|
Murata Manufacturing Co. Ltd. |
16,200 |
1,380,415 |
|
NEC Corp. |
285,000 |
5,226,330 |
|
Nichicon Corp. |
100,800 |
1,387,176 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
Japan - continued |
|||
Nidec Corp. |
32,500 |
$ 1,708,521 |
|
Nikko Securities Co. Ltd. |
280,000 |
2,411,161 |
|
Nikon Corp. |
47,000 |
589,750 |
|
Nintendo Co. Ltd. |
24,700 |
4,031,150 |
|
Nippon Foundry, Inc. (a) |
140 |
1,085,023 |
|
Nippon Telegraph & Telephone Corp. |
391 |
2,517,244 |
|
Nissan Motor Co. Ltd. (a) |
1,526,000 |
10,600,269 |
|
Nitto Denko Corp. |
83,700 |
2,766,365 |
|
Nomura Securities Co. Ltd. |
612,000 |
13,099,988 |
|
NTT DoCoMo, Inc. |
208 |
4,332,874 |
|
ORIX Corp. |
27,300 |
2,415,812 |
|
Pioneer Corp. |
47,000 |
1,422,339 |
|
Ricoh Co. Ltd. |
272,000 |
5,164,150 |
|
Rohm Co. Ltd. |
22,500 |
4,022,703 |
|
Sankyo Co. Ltd. |
89,000 |
1,883,166 |
|
Shimachu Co. Ltd. |
8,500 |
125,479 |
|
Shin-Etsu Chemical Co. Ltd. |
58,000 |
2,359,330 |
|
Skylark Co. Ltd. |
32,000 |
1,002,518 |
|
Sony Corp. |
188,800 |
14,471,519 |
|
SRL, Inc. (a) |
60,000 |
718,428 |
|
Stanley Electric Co. Ltd. |
144,000 |
1,380,562 |
|
Sumitomo Electric Industries Ltd. |
47,000 |
588,979 |
|
Sumitomo Mitsui Banking Corp. |
696,200 |
6,588,989 |
|
Sumitomo Trust & Banking Ltd. |
446,000 |
3,068,851 |
|
Takeda Chemical Industries Ltd. |
164,000 |
8,016,210 |
|
Takefuji Corp. |
37,500 |
2,977,046 |
|
The Suruga Bank Ltd. |
124,000 |
915,257 |
|
THK Co. Ltd. |
67,700 |
1,646,237 |
|
Tokyo Electron Ltd. |
30,900 |
2,280,762 |
|
Toshiba Corp. |
425,000 |
2,826,759 |
|
Toyoda Gosei Co. Ltd. |
62,000 |
1,316,953 |
|
Toyota Motor Corp. |
530,200 |
17,871,477 |
|
Yakult Honsha Co. Ltd. |
92,000 |
1,115,170 |
|
Yamada Denki Co. Ltd. |
46,800 |
3,891,910 |
|
TOTAL JAPAN |
229,779,342 |
||
Korea (South) - 4.8% |
|||
H&CB |
50,000 |
951,025 |
|
Hyundai Motor Co. Ltd. |
96,100 |
1,503,158 |
|
Kookmin Bank |
332,700 |
3,940,863 |
|
Kookmin Credit Card Co. Ltd. |
82,930 |
2,191,315 |
|
Korea Electric Power Corp. |
34,900 |
602,866 |
|
Samsung Electronics Co. Ltd. |
38,490 |
6,692,638 |
|
SK Telecom Co. Ltd. |
21,900 |
3,766,399 |
|
TOTAL KOREA (SOUTH) |
19,648,264 |
||
|
|||
Shares |
Value (Note 1) |
||
Malaysia - 0.6% |
|||
Amway (Malaysia) Holdings BHD |
215,000 |
$ 272,711 |
|
British American Tobacco BHD |
124,000 |
1,133,947 |
|
Malayan Banking BHD |
220,000 |
567,368 |
|
Public Bank BHD (For. Reg.) |
244,400 |
168,507 |
|
Tanjong PLC |
285,000 |
465,000 |
|
TOTAL MALAYSIA |
2,607,533 |
||
New Zealand - 0.3% |
|||
The Warehouse Group Ltd. |
428,700 |
1,018,918 |
|
Singapore - 3.6% |
|||
Chartered Semiconductor Manufacturing Ltd. (a) |
145,000 |
445,786 |
|
Datacraft Asia Ltd. |
220,000 |
1,122,000 |
|
DBS Group Holdings Ltd. |
278,239 |
2,428,768 |
|
Oversea-Chinese Banking Corp. Ltd. |
514,000 |
3,104,035 |
|
Overseas Union Bank Ltd. |
422,452 |
1,646,670 |
|
Sembcorp Logistics Ltd. |
267,000 |
1,026,077 |
|
Singapore Technologies Engineering Ltd. |
1,562,000 |
2,341,071 |
|
United Overseas Bank Ltd. |
341,152 |
2,266,231 |
|
Venture Manufacturing Singapore Ltd. |
58,000 |
404,392 |
|
TOTAL SINGAPORE |
14,785,030 |
||
Taiwan - 5.4% |
|||
Asustek Computer, Inc. |
350,000 |
1,590,909 |
|
China Development Industrial Bank, Inc. |
614,200 |
547,159 |
|
ChinaTrust Commercial Bank |
2,905,000 |
2,119,793 |
|
Delta Electronics, Inc. |
120,000 |
364,853 |
|
Hon Hai Precision Industries Co. Ltd. |
563,300 |
3,305,470 |
|
Siliconware Precision Industries Co. Ltd. |
1,061,000 |
825,832 |
|
Taiwan Semiconductor Manufacturing Co. Ltd. (a) |
2,088,886 |
5,779,526 |
|
United Microelectronics Corp. |
1,964,100 |
3,135,155 |
|
Via Technologies, Inc. |
128,000 |
1,206,446 |
|
Winbond Electronics Corp. |
1,378,000 |
1,617,233 |
|
Yuanta Securities Co. Ltd. |
2,115,000 |
1,607,631 |
|
TOTAL TAIWAN |
22,100,007 |
||
Thailand - 0.1% |
|||
Shin Corporations PCL (For. Reg.) (a) |
66,600 |
240,723 |
|
TelecomAsia Corp. PCL (a) |
1 |
0 |
|
TelecomAsia Corp. PCL rights 4/30/08 |
206,113 |
20,911 |
|
TOTAL THAILAND |
261,634 |
||
United States of America - 0.2% |
|||
Reliant Resources, Inc. |
2,000 |
60,000 |
|
Resmed, Inc. unit (a) |
196,610 |
893,666 |
|
TOTAL UNITED STATES OF AMERICA |
953,666 |
||
TOTAL COMMON STOCKS (Cost $372,313,465) |
399,445,940 |
||
Cash Equivalents - 4.7% |
|||
Shares |
Value (Note 1) |
||
Fidelity Cash Central Fund, 4.70% (b) |
12,887,337 |
$ 12,887,337 |
|
Fidelity Securities Lending Cash Central Fund, 4.59% (b) |
6,627,497 |
6,627,497 |
|
TOTAL CASH EQUIVALENTS (Cost $19,514,834) |
19,514,834 |
||
TOTAL INVESTMENT PORTFOLIO - 101.3% (Cost $391,828,299) |
418,960,774 |
||
NET OTHER ASSETS - (1.3)% |
(5,245,003) |
||
NET ASSETS - 100% |
$ 413,715,771 |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $298,210,563 and $312,652,359, respectively. |
The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of Fidelity Management & Research Company. The commissions paid to these affiliated firms were $33,301 for the period. |
The fund participated in the security lending program during the period. Cash collateral includes amounts received for unsettled security loans. |
Income Tax Information |
At April 30, 2001, the aggregate cost of investment securities for income tax purposes was $398,079,644. Net unrealized appreciation aggregated $20,881,130, of which $54,715,315 related to appreciated investment securities and $33,834,185 related to depreciated investment securities. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Pacific Basin
Statement of Assets and Liabilities
|
April 30, 2001 (Unaudited) |
|
Assets |
|
|
Investment in securities, at value (including securities loaned of $5,875,643) (cost $391,828,299) - See accompanying schedule |
|
$ 418,960,774 |
Foreign currency held at value |
|
3,028,332 |
Receivable for investments sold |
|
2,486,214 |
Receivable for fund shares sold |
|
606,085 |
Dividends receivable |
|
820,364 |
Interest receivable |
|
80,554 |
Redemption fees receivable |
|
304 |
Other receivables |
|
5,476 |
Total assets |
|
425,988,103 |
Liabilities |
|
|
Payable for investments purchased |
$ 4,633,198 |
|
Payable for fund shares redeemed |
449,378 |
|
Accrued management fee |
318,946 |
|
Other payables and |
243,313 |
|
Collateral on securities loaned, |
6,627,497 |
|
Total liabilities |
|
12,272,332 |
Net Assets |
|
$ 413,715,771 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 430,171,701 |
Distributions in excess of net investment income |
|
(22,798,829) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
(20,776,570) |
Net unrealized appreciation (depreciation) on investments |
|
27,119,469 |
Net Assets, for 24,987,953 shares outstanding |
|
$ 413,715,771 |
Net Asset Value and redemption price per share ($413,715,771 ÷ 24,987,953 shares) |
|
$16.56 |
Maximum offering price per share (100/97.00 of $16.56) |
|
$17.07 |
Statement of Operations
|
Six months ended April 30, 2001 (Unaudited) |
|
Investment Income Dividends |
|
$ 2,685,999 |
Interest |
|
731,956 |
Security lending |
|
37,687 |
|
|
3,455,642 |
Less foreign taxes withheld |
|
(228,867) |
Total income |
|
3,226,775 |
Expenses |
|
|
Management fee |
$ 1,612,171 |
|
Performance adjustment |
462,221 |
|
Transfer agent fees |
716,442 |
|
Accounting and security lending fees |
133,379 |
|
Non-interested trustees' compensation |
541 |
|
Custodian fees and expenses |
144,186 |
|
Registration fees |
23,871 |
|
Audit |
20,564 |
|
Legal |
3,595 |
|
Reports to shareholders |
22,386 |
|
Miscellaneous |
2,707 |
|
Total expenses before reductions |
3,142,063 |
|
Expense reductions |
(56,471) |
3,085,592 |
Net investment income |
|
141,183 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities |
(37,647,993) |
|
Foreign currency transactions |
(169,724) |
(37,817,717) |
Change in net unrealized appreciation (depreciation) on: |
|
|
Investment securities |
(24,800,249) |
|
Assets and liabilities in |
74,766 |
(24,725,483) |
Net gain (loss) |
|
(62,543,200) |
Net increase (decrease) in net assets resulting from operations |
|
$ (62,402,017) |
Other Information |
|
$ 32,182 |
Expense reductions |
|
|
Directed brokerage arrangements |
|
$ 42,370 |
Transfer agent credits |
|
14,101 |
|
|
$ 56,471 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Pacific Basin
Financial Statements - continued
Statement of Changes in Net Assets
Increase (Decrease) in Net Assets |
Six months ended |
Year ended
October 31, |
Operations |
$ 141,183 |
$ (3,158,495) |
Net realized gain (loss) |
(37,817,717) |
88,999,131 |
Change in net unrealized appreciation (depreciation) |
(24,725,483) |
(132,157,783) |
Net increase (decrease) in net assets resulting from operations |
(62,402,017) |
(46,317,147) |
Distributions to shareholders |
(4,012,250) |
- |
In excess of net investment income |
(22,798,829) |
(9,139,090) |
From net realized gain |
(5,605,953) |
- |
Total distributions |
(32,417,032) |
(9,139,090) |
Share transactions |
77,258,542 |
614,678,244 |
Reinvestment of distributions |
31,495,646 |
8,972,789 |
Cost of shares redeemed |
(117,502,257) |
(713,633,183) |
Net increase (decrease) in net assets resulting from share transactions |
(8,748,069) |
(89,982,150) |
Redemption fees |
513,740 |
2,326,690 |
Total increase (decrease) in net assets |
(103,053,378) |
(143,111,697) |
Net Assets |
|
|
Beginning of period |
516,769,149 |
659,880,846 |
End of period (including under (over) distribution of net investment income of $(22,798,829) |
$ 413,715,771 |
$ 516,769,149 |
Other Information Shares |
|
|
Sold |
4,551,156 |
23,840,559 |
Issued in reinvestment of distributions |
1,759,533 |
352,256 |
Redeemed |
(6,759,968) |
(28,114,949) |
Net increase (decrease) |
(449,279) |
(3,922,134) |
Financial Highlights
|
Six months ended |
Years ended October 31, |
||||
Selected Per-Share Data |
(Unaudited) |
2000 |
1999 |
1998 |
1997 |
1996 |
Net asset value, beginning of period |
$ 20.32 |
$ 22.48 |
$ 11.89 |
$ 13.41 |
$ 14.65 |
$ 14.88 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D |
.01 |
(.10) |
(.04) |
(.02) |
(.01) |
.05 |
Net realized and unrealized gain (loss) |
(2.46) |
(1.86) |
10.62 |
(1.26) |
(1.16) |
(.29) |
Total from investment operations |
(2.45) |
(1.96) |
10.58 |
(1.28) |
(1.17) |
(.24) |
Less Distributions |
|
|
|
|
|
|
From net investment income |
(.16) |
- |
- |
- |
(.01) |
- |
In excess of net investment income |
(.94) |
(.28) |
(.02) |
(.25) |
(.07) |
- |
From net realized gain |
(.23) |
- |
- |
- |
- |
- |
Total distributions |
(1.33) |
(.28) |
(.02) |
(.25) |
(.08) |
- |
Redemption fees added to paid in capital |
.02 |
.08 |
.03 |
.01 |
.01 |
.01 |
Net asset value, end of period |
$ 16.56 |
$ 20.32 |
$ 22.48 |
$ 11.89 |
$ 13.41 |
$ 14.65 |
Total Return B, C |
(12.45)% |
(8.61)% |
89.36% |
(9.52)% |
(7.97)% |
(1.55)% |
Ratios and Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 413,716 |
$ 516,769 |
$ 659,881 |
$ 195,464 |
$ 239,517 |
$ 572,150 |
Ratio of expenses to average net assets |
1.45% A |
1.25% |
1.37% |
1.73% |
1.32% |
1.26% |
Ratio of expenses to average net assets |
1.43% A, E |
1.22% E |
1.36% E |
1.72% E |
1.31% E |
1.24% E |
Ratio of net investment income (loss) to average net assets |
.07% A |
(.42)% |
(.24)% |
(.16)% |
(.04)% |
.30% |
Portfolio turnover rate |
147% A |
144% |
101% |
57% |
42% |
85% |
A Annualized B The total returns would have been lower had certain expenses not been reduced during the periods shown. C Total returns do not include the one time sales charge and for periods of less than one year are not annualized. D Net investment income (loss) per share has been calculated based on average shares outstanding during the period. E FMR or the fund has entered into varying arrangements with third parties who either paid or reduced a portion of the fund's expenses. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
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. Total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value). If Fidelity had not reimbursed certain fund expenses, the life of fund total returns would have been lower.
Cumulative Total Returns
Periods ended |
Past 6 |
Past 1 |
Past 5 |
Life of |
Fidelity Southeast Asia |
-3.66% |
-25.64% |
-24.86% |
21.02% |
Fidelity Southeast Asia |
-6.55% |
-27.87% |
-27.12% |
17.39% |
MSCI AC Far East Free |
-8.17% |
-31.38% |
-48.15% |
-7.35% |
Pacific Region ex-Japan |
-7.02% |
-28.36% |
-32.87% |
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 April 19, 1993. For example, if you had invested $1,000 in a fund that had a 5% return over the past year, the value of your investment would be $1,050. You can compare the fund's returns to the performance of the Morgan Stanley Capital International AC Far East Free ex-Japan Index - a market capitalization-weighted index of over 280 stocks traded in nine Asian markets, excluding Japan. To measure how the fund's performance stacked up against its peers, you can compare it to the Pacific region ex-Japan funds average, which reflects the performance of mutual funds with similar objectives tracked by Lipper Inc. The past six months average represents a peer group of 76 mutual funds. These benchmarks include reinvested dividends and capital gains, if any, and exclude the effect of sales charges.
Average Annual Total Returns
Periods ended |
Past 1 |
Past 5 |
Life of |
Fidelity Southeast Asia |
-25.64% |
-5.56% |
2.40% |
Fidelity Southeast Asia |
-27.87% |
-6.13% |
2.02% |
MSCI AC Far East Free |
-31.38% |
-12.31% |
-0.95% |
Pacific Region ex-Japan |
-28.36% |
-8.31% |
n/a * |
Average annual total returns take the fund's cumulative return and show you what would have happened if the fund had performed at a constant rate each year.
* Not available
$10,000 Over Life of Fund
$10,000 Over Life of Fund: Let's say hypothetically that $10,000 was invested in Fidelity Southeast Asia Fund on April 19, 1993, when the fund started, and the current 3.00% sales charge was paid. As the chart shows, by April 30, 2001, the value of the investment would have grown to $11,739 - a 17.39% increase on the initial investment. For comparison, look at how the Morgan Stanley Capital International AC Far East Free ex-Japan Index did over the same period. With dividends and capital gains, if any, reinvested, the same $10,000 would have been $9,265 - a 7.35% decrease.
Understanding Performance
Many markets around the globe offer the potential for significant growth over time; however, investing in foreign markets means assuming greater risks than investing in the United States. Factors like changes in a country's financial markets, its local political and economic climate, and the fluctuating value of its currency create these risks. For these reasons an international fund's performance may be more volatile than a fund that invests exclusively in the United States. Past performance is no guarantee of future results and you may have a gain or loss when you sell your shares.
3Semiannual Report
Southeast Asia
(Portfolio Manager photograph)
An interview with Allan Liu, Portfolio Manager of Fidelity Southeast Asia Fund
Q. How did the fund perform, Allan?
A. Although the fund had a negative return, it finished ahead of its benchmarks. For the six months that ended April 30, 2001, the fund returned -3.66%. That compares favorably with the Morgan Stanley Capital International All Country Far East Free ex-Japan Index and the Pacific region ex-Japan funds average tracked by Lipper Inc., which returned -8.17% and -7.02%, respectively. For the 12 months that ended April 30, 2001, the fund returned -25.64%, compared with -31.38% for the index and -28.36% for the Lipper average.
Q. What factors enabled the fund to outperform the index and the average during the six-month period?
A. I continued to maintain a large exposure to interest-rate-sensitive stocks such as banks and property companies, especially in Hong Kong. Repeated cuts in U.S. interest rates led to corresponding reductions in Hong Kong rates, driving the outperformance of these financial holdings. At the same time, I brought up the weighting of technology stocks, particularly in South Korea and Taiwan. In general, I focused the fund's technology exposure on companies of the very highest quality, eliminating or reducing positions in most second-tier companies. Increasing the fund's technology exposure helped performance relative to the index, as technology stocks have strengthened since the beginning of the year.
Q. Where did you reduce the fund's exposure?
A. I trimmed the weighting in telecommunications companies as their valuations were facing downward pressure from their global peers. I felt that the need to raise cash among European telecommunications companies capped the short-term upside potential of Asian telecom stocks, despite the fact that the basic business prospects of the two groups were very different. For example, most leading Asian wireless telecom companies still enjoy a healthy cash flow and have no pressing need to invest in expensive third-generation wireless technology.
Q. What stocks did well for the fund?
A. Samsung Electronics was the most positive contributor. Perhaps the premier manufacturer of DRAM (dynamic random access memory) in the world, Samsung recovered during the period after plunging early last fall. DRAM stocks were among the first stocks to fall as the technology slowdown gained momentum, but then rebounded on investors' hopes that perhaps the worst news on earnings had already occurred. Sun Hung Kai Properties, Amoy Properties and Hong Kong Land Holdings were property stocks that benefited from falling interest rates.
Q. What holdings underperformed?
A. Hutchison Whampoa, often mentioned in previous shareholder reports as a positive contributor, headed the list of detractors. The company's wireless business suffered from concerns about the costs of third-generation licenses and the slowing growth in wireless phone use. China Mobile fell in sympathy with the stocks of other wireless providers, although the company faces no immediate expenditures for third-generation technology. Korea Electric Power, a utility, suffered from a weak South Korean currency - the won - which made the company's considerable U.S. dollar debt more costly.
Q. What's your outlook, Allan?
A. The U.S. slowdown has had a significant impact on the economies of Taiwan and South Korea, where exports have a big influence on economic health. Many of the top companies in these countries have implemented cost-cutting initiatives, but economic recovery in the U.S. would bring a much-needed boost to the revenue side of the equation. One development I will be watching closely is the possible entry of China into the World Trade Organization. Such a development would make it easier for foreign companies to sell products in China and for Chinese firms to sell more abroad. For my part, I will maintain the fund's emphasis on globally competitive companies with strong balance sheets and shareholder-friendly managements.
The views expressed in this report reflect those of the portfolio manager only through the end of the period of the report as stated on the cover. The manager's views are subject to change at any time based on market or other conditions. For more information, see page 3.
Fund Facts
Goal: long-term capital appreciation by investing mainly in equity securities of Southeast Asian issuers
Fund number: 351
Trading symbol: FSEAX
Start date: April 19, 1993
Size: as of April 30, 2001, more than
$268 million
Manager: Allan Liu, since inception; manager, various funds for non-U.S. investors; analyst, Southeast Asian markets, 1987-1990; joined Fidelity in 1987
3Semiannual Report
Southeast Asia
Geographic Diversification (% of fund's net assets) |
|||
As of April 30, 2001 |
|||
Hong Kong |
47.0% |
|
|
Korea (South) |
17.4% |
|
|
Taiwan |
16.9% |
|
|
Singapore |
10.9% |
|
|
United Kingdom |
3.2% |
|
|
Malaysia |
2.0% |
|
|
United States of America |
1.1% |
|
|
Thailand |
0.6% |
|
|
China |
0.6% |
|
|
Other |
0.3% |
|
|
|||
As of October 31, 2000 |
|||
Hong Kong |
53.9% |
|
|
Taiwan |
14.2% |
|
|
Singapore |
11.0% |
|
|
Korea (South) |
9.6% |
|
|
United States of America |
3.9% |
|
|
Malaysia |
2.8% |
|
|
China |
1.8% |
|
|
United Kingdom |
1.7% |
|
|
Thailand |
1.1% |
|
|
Other |
0.0% |
|
Percentages are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation |
||
|
% of fund's |
% of fund's net assets |
Stocks |
98.9 |
96.1 |
Short-Term Investments |
1.1 |
3.9 |
Top Ten Stocks as of April 30, 2001 |
||
|
% of fund's |
% of fund's net assets |
Hutchison Whampoa Ltd. (Hong Kong, Diversified Financials) |
9.2 |
10.1 |
Cheung Kong Holdings Ltd. (Hong Kong, Real Estate) |
6.5 |
6.6 |
China Mobile (Hong Kong) Ltd. (Hong Kong, Wireless Telecommunication Services) |
6.1 |
8.0 |
Samsung Electronics Co. Ltd. (Korea (South), Semiconductor Equipment & Products) |
5.8 |
2.1 |
Taiwan Semiconductor Manufacturing Co. Ltd. |
4.1 |
3.2 |
Hang Seng Bank Ltd. |
3.7 |
4.0 |
SK Telecom Co. Ltd. |
3.7 |
3.7 |
Sun Hung Kai Properties Ltd. (Hong Kong, Real Estate) |
3.5 |
3.3 |
Amoy Properties Ltd. |
3.4 |
2.9 |
Li & Fung Ltd. |
3.3 |
2.6 |
|
49.3 |
|
Market Sectors as of April 30, 2001 |
||
|
% of fund's |
% of fund's net assets |
Financials |
46.6 |
41.9 |
Information Technology |
24.2 |
16.1 |
Telecommunication Services |
11.9 |
16.2 |
Consumer Discretionary |
8.0 |
6.1 |
Industrials |
4.6 |
6.8 |
Utilities |
2.2 |
6.0 |
Consumer Staples |
1.3 |
0.8 |
Materials |
0.1 |
0.9 |
Energy |
0.0 |
1.3 |
Effective with this report, industry classifications follow the MSCI/S&P Global Industry Classification Standard. This replaces the U.S. Standard Industrial Classification system that is being phased out. Prior period industry percentages reflect the new standard. |
Semiannual Report
Southeast Asia
(Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.8% |
|||
Shares |
Value (Note 1) |
||
Cayman Islands - 0.1% |
|||
Convenience Retail Asia Ltd. |
1,000,000 |
$ 208,998 |
|
China - 0.6% |
|||
Travelsky Technology Ltd. (H Shares) |
1,900,000 |
1,278,994 |
|
Yanzhou Coal Mining Co. Ltd. (H Shares) |
1,100,000 |
451,334 |
|
TOTAL CHINA |
1,730,328 |
||
Hong Kong - 47.0% |
|||
Amoy Properties Ltd. |
8,860,000 |
9,201,831 |
|
Asat Holdings Ltd. sponsored ADR |
156,400 |
735,080 |
|
Cheung Kong Holdings Ltd. |
1,570,000 |
17,513,559 |
|
China Mobile (Hong Kong) Ltd. (a) |
3,260,000 |
16,508,639 |
|
China Overseas Land & Investment Ltd. |
7,000,000 |
933,441 |
|
Dairy Farm International Holdings Ltd. |
698,700 |
363,324 |
|
DAO Heng Bank Group Ltd. |
200,000 |
1,487,351 |
|
Denway Motors Ltd. (a) |
6,600,000 |
1,967,535 |
|
Guangzhou Investment Co. Ltd. (a) |
8,000,000 |
594,940 |
|
Guoco Group Ltd. |
466,000 |
2,694,747 |
|
Hang Seng Bank Ltd. |
850,000 |
10,026,798 |
|
Henderson Land Development Co. Ltd. |
350,000 |
1,606,596 |
|
Hong Kong & China Gas Co. Ltd. |
462,000 |
550,910 |
|
Hong Kong Exchanges & Clearing Ltd. |
700,000 |
1,252,068 |
|
Hong Kong Land Holdings Ltd. |
101,667 |
204,351 |
|
Hutchison Whampoa Ltd. |
2,281,700 |
24,648,127 |
|
Hysan Development Ltd. |
3,710,000 |
5,089,946 |
|
Johnson Electric Holdings Ltd. |
2,460,000 |
4,620,918 |
|
Kerry Properties Ltd. |
300,000 |
369,273 |
|
Li & Fung Ltd. |
4,688,000 |
8,896,206 |
|
MTR Corp. Ltd. |
980,000 |
1,690,067 |
|
Sun Hung Kai Properties Ltd. |
1,010,310 |
9,391,786 |
|
Swire Pacific Ltd. (A Shares) |
698,000 |
3,848,393 |
|
Television Broadcasts Ltd. |
236,000 |
1,192,240 |
|
Wharf Holdings Ltd. |
480,000 |
1,126,284 |
|
TOTAL HONG KONG |
126,514,410 |
||
Indonesia - 0.2% |
|||
Gudang Garam PT Perusahaan |
480,000 |
473,794 |
|
PT Lippo Bank Tbk: |
|
|
|
rights (a) |
36,000,000 |
0 |
|
warrants 5/1/02 (a) |
36,000,000 |
0 |
|
TOTAL INDONESIA |
473,794 |
||
Korea (South) - 17.4% |
|||
H&CB |
179,123 |
3,407,007 |
|
Humax Co. Ltd. (a) |
80,000 |
1,202,733 |
|
Kookmin Bank |
128,000 |
1,516,172 |
|
Kookmin Credit Card Co. Ltd. |
89,993 |
2,377,946 |
|
Korea Electric Power Corp. |
310,000 |
5,354,970 |
|
Korea Telecom |
63,700 |
3,057,308 |
|
Korea Telecom Freetel Co. Ltd. (a) |
20,000 |
716,780 |
|
NCsoft Corp. |
5,000 |
455,581 |
|
Samsung Electronics Co. Ltd. |
89,434 |
15,550,778 |
|
Samsung Securities Co. Ltd. |
62,000 |
1,628,853 |
|
|
|||
Shares |
Value (Note 1) |
||
Shinsegae Co. Ltd. |
28,650 |
$ 1,729,441 |
|
SK Telecom Co. Ltd. |
57,460 |
9,882,067 |
|
TOTAL KOREA (SOUTH) |
46,879,636 |
||
Malaysia - 2.0% |
|||
British American Tobacco BHD (Malaysia) |
260,000 |
2,377,632 |
|
DiGi.com BHD (a) |
789,000 |
1,100,447 |
|
Malayan Banking BHD |
300,000 |
773,684 |
|
Tanjong PLC |
600,000 |
978,947 |
|
United Engineers BHD warrants 11/18/02 (a) |
170,000 |
46,526 |
|
TOTAL MALAYSIA |
5,277,236 |
||
Singapore - 10.9% |
|||
Chartered Semiconductor |
540,000 |
1,660,170 |
|
Chartered Semiconductor |
8,000 |
255,920 |
|
City Developments Ltd. |
250,000 |
878,397 |
|
Datacraft Asia Ltd. |
661,400 |
3,373,140 |
|
DBS Group Holdings Ltd. |
509,605 |
4,448,377 |
|
Delgro Corp. Ltd. |
50,000 |
155,092 |
|
Great Eastern Holdings Ltd. |
160,000 |
720,285 |
|
OMNI Industries Ltd. |
1,350,000 |
1,986,275 |
|
Oversea-Chinese Banking Corp. Ltd. |
370,000 |
2,234,422 |
|
Overseas Union Enterprises Ltd. |
100,000 |
414,494 |
|
Singapore Airlines Ltd. |
90,000 |
716,443 |
|
Singapore Exchange Ltd. |
2,644,300 |
1,771,093 |
|
Singapore Press Holdings Ltd. |
184,076 |
2,112,099 |
|
Singapore Technologies Engineering Ltd. |
1,486,175 |
2,227,427 |
|
SMRT Corp. Ltd. |
1,900,000 |
912,709 |
|
United Overseas Bank Ltd. |
520,000 |
3,454,296 |
|
United Overseas Land Ltd. |
600,000 |
556,684 |
|
Venture Manufacturing Singapore Ltd. |
205,000 |
1,429,316 |
|
TOTAL SINGAPORE |
29,306,639 |
||
Taiwan - 16.9% |
|||
Advantech Co. Ltd. (a) |
200,000 |
772,271 |
|
Asustek Computer, Inc. |
424,112 |
1,927,782 |
|
Bank Sinopac |
3,400,000 |
1,519,611 |
|
ChinaTrust Commercial Bank |
1,900,000 |
1,386,440 |
|
Compal Electronics, Inc. |
1,035,000 |
1,762,238 |
|
Compeq Manufacturing Co. Ltd. |
173,080 |
528,870 |
|
Delta Electronics, Inc. |
550,000 |
1,672,241 |
|
Hon Hai Precision Industries Co. Ltd. |
645,644 |
3,788,668 |
|
Nanya Technology Corp. |
1,100,000 |
1,010,033 |
|
Powerchip Semiconductor Corp. |
1,000,000 |
927,334 |
|
Quanta Computer, Inc. |
730,000 |
2,441,472 |
|
Siliconware Precision Industries Co. Ltd. |
2,500,000 |
1,945,880 |
|
Stark Technology, Inc. |
529,000 |
3,844,056 |
|
Sunplus Technology Co. Ltd. |
100,000 |
492,551 |
|
Taiwan Semiconductor |
3,980,746 |
11,013,922 |
|
United Microelectronics Corp. |
3,815,940 |
6,091,117 |
|
Common Stocks - continued |
|||
Shares |
Value (Note 1) |
||
Taiwan - continued |
|||
Via Technologies, Inc. |
150,000 |
$ 1,413,804 |
|
Winbond Electronics Corp. |
2,400,000 |
2,816,662 |
|
TOTAL TAIWAN |
45,354,952 |
||
Thailand - 0.5% |
|||
Advanced Info Service PCL (For. Reg.) |
90,000 |
910,843 |
|
Bangkok Bank Ltd. PCL (For. Reg.) (a) |
440,000 |
486,747 |
|
TOTAL THAILAND |
1,397,590 |
||
United Kingdom - 3.2% |
|||
HSBC Holdings PLC (Hong Kong) (Reg.) |
650,350 |
8,498,774 |
|
TOTAL COMMON STOCKS (Cost $219,106,872) |
265,642,357 |
||
Convertible Preferred Stocks - 0.1% |
|||
|
|
|
|
Thailand - 0.1% |
|||
Siam Commercial Bank PLC $1.365 (Reg. S) (a) |
720,000 |
358,817 |
|
Cash Equivalents - 1.3% |
|||
|
|
|
|
Fidelity Cash Central Fund, 4.70% (b) |
3,393,607 |
3,393,607 |
|
Fidelity Securities Lending |
125,000 |
125,000 |
|
TOTAL CASH EQUIVALENTS (Cost $3,518,607) |
3,518,607 |
||
TOTAL INVESTMENT PORTFOLIO - 100.2% (Cost $223,004,030) |
269,519,781 |
||
NET OTHER ASSETS - (0.2)% |
(656,986) |
||
NET ASSETS - 100% |
$ 268,862,795 |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $113,674,523 and $115,764,943, respectively. |
Income Tax Information |
At April 30, 2001, the aggregate cost of investment securities for income tax purposes was $223,713,539. Net unrealized appreciation aggregated $45,806,242, of which $60,820,850 related to appreciated investment securities and $15,014,608 related to depreciated investment securities. |
At October 31, 2000, the fund had a capital loss carryforward of approximately $93,028,000 of which $92,704,000 and $324,000 will expire on October 31, 2006 and 2007, respectively. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Southeast Asia
Statement of Assets and Liabilities
|
April 30, 2001 (Unaudited) |
|
Assets |
|
|
Investment in securities, at value (including securities loaned of $125,000) (cost $223,004,030) - See accompanying schedule |
|
$ 269,519,781 |
Foreign currency held at value |
|
863,704 |
Receivable for investments sold |
|
575,016 |
Receivable for fund shares sold |
|
303,750 |
Dividends receivable |
|
473,035 |
Interest receivable |
|
16,349 |
Redemption fees receivable |
|
221 |
Other receivables |
|
360 |
Total assets |
|
271,752,216 |
Liabilities |
|
|
Payable for investments purchased |
$ 1,607,555 |
|
Payable for fund shares redeemed |
469,126 |
|
Accrued management fee |
212,181 |
|
Other payables and |
475,559 |
|
Collateral on securities loaned, |
125,000 |
|
Total liabilities |
|
2,889,421 |
Net Assets |
|
$ 268,862,795 |
Net Assets consist of: |
|
|
Paid in capital |
|
$ 321,396,732 |
Undistributed net investment income |
|
369,161 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions |
|
(99,153,261) |
Net unrealized appreciation (depreciation) on investments |
|
46,250,163 |
Net Assets, for 23,768,157 shares outstanding |
|
$ 268,862,795 |
Net Asset Value and redemption price per share ($268,862,795 ÷ 23,768,157 shares) |
|
$11.31 |
Maximum offering price per share (100/97.00 of $11.31) |
|
$11.66 |
Statement of Operations
|
Six months ended April 30, 2001 (Unaudited) |
|
Investment Income Dividends |
|
$ 2,507,116 |
Interest |
|
195,084 |
Security lending |
|
10,830 |
|
|
2,713,030 |
Less foreign taxes withheld |
|
(216,010) |
Total income |
|
2,497,020 |
Expenses |
|
|
Management fee |
$ 1,045,681 |
|
Performance adjustment |
327,778 |
|
Transfer agent fees |
451,007 |
|
Accounting and security lending fees |
86,567 |
|
Non-interested trustees' compensation |
5 |
|
Custodian fees and expenses |
161,675 |
|
Registration fees |
31,314 |
|
Audit |
18,168 |
|
Legal |
3,087 |
|
Reports to shareholders |
13,677 |
|
Miscellaneous |
2,062 |
|
Total expenses before reductions |
2,141,021 |
|
Expense reductions |
(13,162) |
2,127,859 |
Net investment income |
|
369,161 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: |
|
|
Investment securities |
(1,674,836) |
|
Foreign currency transactions |
(154,465) |
(1,829,301) |
Change in net unrealized appreciation (depreciation) on: |
|
|
Investment securities |
(9,993,132) |
|
Assets and liabilities in |
101,972 |
(9,891,160) |
Net gain (loss) |
|
(11,720,461) |
Net increase (decrease) in net assets resulting from operations |
|
$ (11,351,300) |
Other Information |
|
$ 33,579 |
Expense reductions |
|
|
Directed brokerage arrangements |
|
$ 10,034 |
Custodian credits |
|
231 |
Transfer agent credits |
|
2,897 |
|
|
$ 13,162 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Southeast Asia
Financial Statements - continued
Statement of Changes in Net Assets
Increase (Decrease) in Net Assets |
Six months ended |
Year ended
October 31, |
Operations |
$ 369,161 |
$ (1,021,964) |
Net realized gain (loss) |
(1,829,301) |
46,901,232 |
Change in net unrealized appreciation (depreciation) |
(9,891,160) |
(44,232,039) |
Net increase (decrease) in net assets resulting from operations |
(11,351,300) |
1,647,229 |
Distributions to shareholders from net investment income |
- |
(596,056) |
Share transactions |
48,067,460 |
186,667,900 |
Reinvestment of distributions |
- |
573,854 |
Cost of shares redeemed |
(59,108,844) |
(258,865,487) |
Net increase (decrease) in net assets resulting from share transactions |
(11,041,384) |
(71,623,733) |
Redemption fees |
256,989 |
889,166 |
Total increase (decrease) in net assets |
(22,135,695) |
(69,683,394) |
Net Assets |
|
|
Beginning of period |
290,998,490 |
360,681,884 |
End of period (including undistributed net investment income of $369,161 and $0, respectively) |
$ 268,862,795 |
$ 290,998,490 |
Other Information Shares |
|
|
Sold |
4,091,932 |
11,795,989 |
Issued in reinvestment of distributions |
- |
39,604 |
Redeemed |
(5,101,804) |
(16,745,342) |
Net increase (decrease) |
(1,009,872) |
(4,909,749) |
Financial Highlights
|
Six months ended |
Years ended October 31, |
||||
Selected Per-Share Data |
(Unaudited) |
2000 |
1999 |
1998 |
1997 |
1996 |
Net asset value, beginning of period |
$ 11.74 |
$ 12.15 |
$ 8.13 |
$ 9.55 |
$ 14.69 |
$ 13.88 |
Income from Investment Operations |
|
|
|
|
|
|
Net investment income (loss) D |
.02 |
(.04) |
.03 |
.09 |
.04 E |
.14 |
Net realized and unrealized gain (loss) |
(.46) |
(.38) |
3.97 |
(1.48) |
(4.62) |
.87 |
Total from investment operations |
(.44) |
(.42) |
4.00 |
(1.39) |
(4.58) |
1.01 |
Less Distributions |
|
|
|
|
|
|
From net investment income |
- |
(.02) |
(.02) |
(.05) |
(.10) |
(.23) |
In excess of net investment income |
- |
- |
- |
- |
(.07) |
- |
From net realized gain |
- |
- |
- |
- |
(.40) |
- |
Total distributions |
- |
(.02) |
(.02) |
(.05) |
(.57) |
(.23) |
Redemption fees added to paid in capital |
.01 |
.03 |
.04 |
.02 |
.01 |
.03 |
Net asset value, end of period |
$ 11.31 |
$ 11.74 |
$ 12.15 |
$ 8.13 |
$ 9.55 |
$ 14.69 |
Total Return B, C |
(3.66)% |
(3.24)% |
49.80% |
(14.44)% |
(32.48)% |
7.59% |
Ratios and Supplemental Data |
|
|
|
|
|
|
Net assets, end of period (000 omitted) |
$ 268,863 |
$ 290,998 |
$ 360,682 |
$ 223,339 |
$ 278,847 |
$ 755,346 |
Ratio of expenses to average net assets |
1.53% A |
1.37% |
1.46% |
1.83% |
1.32% |
1.13% |
Ratio of expenses to average net assets |
1.52% A, F |
1.35% F |
1.43% F |
1.79% F |
1.32% |
1.12% F |
Ratio of net investment income (loss) to average net assets |
.26% A |
(.23)% |
.28% |
1.07% |
.22% |
.95% |
Portfolio turnover rate |
85% A |
88% |
93% |
95% |
141% |
102% |
A Annualized B The total returns would have been lower had certain expenses not been reduced during the periods shown. C Total returns do not include the one time sales charge and for periods of less than one year are not annualized. D Net investment income (loss) per share has been calculated based on average shares outstanding during the period. E Investment income per share reflects a special dividend which amounted to $.02 per share. F FMR or the fund has entered into varying arrangements with third parties who either paid or reduced a portion of the fund's expenses. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
For the period ended April 30, 2001 (Unaudited)
1. Significant Accounting Policies.
Fidelity Canada Fund, Fidelity China Region Fund, Fidelity Emerging Markets Fund, Fidelity Europe Fund, Fidelity Europe Capital Appreciation Fund, Fidelity Japan Fund, Fidelity Japan Smaller Companies Fund, Fidelity Latin America Fund, Fidelity Nordic Fund, Fidelity Pacific Basin Fund, and Fidelity Southeast Asia Fund (the funds) are funds of Fidelity Investment Trust (the trust). The trust is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company organized as a Massachusetts business trust. Each fund is authorized to issue an unlimited number of shares. Certain funds investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the funds:
Security Valuation. Securities for which quotations are readily available are valued using the official closing price or at the last sale price in the principal market in which they are traded. If the last sale price (on the local exchange) is unavailable, the last evaluated quote or closing bid price normally is used. If trading or events occurring in other markets after the close of the principal market in which securities are traded are expected to materially affect the value of those securities, then they are valued at their fair value taking this trading or these events into account. At the end of the period, certain securities, including Japanese securities, were valued in this manner. Fair value is determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Securities (including restricted securities) for which quotations are not readily available are valued primarily using dealer-supplied valuations or at their fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost or original cost plus accrued interest, both of which approximate current value. Investments in open-end investment companies are valued at their net asset value each business day.
Foreign Currency Translation. The accounting records of the funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the prevailing rates of exchange at period end. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars at the prevailing exchange rate on the respective dates of the transactions.
Net realized gains and losses on foreign currency transactions represent net gains and losses from sales and maturities of foreign currency contracts, disposition of foreign currencies, the difference between the amount of net investment income accrued and the U.S. dollar amount actually received, and gains and losses between trade and settlement date on purchases and sales of securities. The effects of changes in foreign currency exchange rates on investments in securities are included with the net realized and unrealized gain or loss on investment securities.
Income Taxes. As a qualified regulated investment company under Subchapter M of the Internal Revenue Code, each fund is not subject to U.S. federal income taxes to the extent that it distributes all of its taxable income for its fiscal year. Each fund may be subject to foreign taxes on income and gains on investments which are accrued based upon each fund's understanding of the tax rules and regulations that exist in the markets in which they invest. Foreign governments may also impose taxes on other payments or transactions with respect to foreign securities. Each fund accrues such taxes as applicable. The schedules of investments include information regarding income taxes under the caption "Income Tax Information."
Investment Income. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the funds are informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, which includes accretion of original discount, is accrued as earned. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.
Distributions to Shareholders. Distributions are recorded on the ex-dividend date.
Income and capital gain distributions are determined in accordance with income tax regulations which may differ from generally accepted accounting principles. These differences, which may result in distribution reclassifications, are primarily due to differing treatments for litigation proceeds, futures transactions, foreign currency transactions, passive foreign investment companies (PFIC), market discount, net operating losses, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations. Certain funds also utilized earnings and profits distributed to shareholders on redemption of shares as a part of the dividends paid deduction for income tax purposes.
Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to paid in capital. Undistributed net investment income, distributions in excess of net investment income, accumulated net investment loss and accumulated undistributed net realized gain (loss) on investments and foreign currency transactions may include temporary book and tax basis differences which will reverse in a subsequent period. Any taxable income or gain remaining at fiscal year end is distributed in the following year.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
1. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held in Canada, China Region, Emerging Markets, Japan, Japan Smaller Companies, Latin America, Nordic, Pacific Basin and Southeast Asia less than 90 days are subject to a short-term trading fee equal to 1.50% of the proceeds of the redeemed shares. Shares held in Europe and Europe Capital Appreciation less than 30 days are subject to a short-term trading fee equal to 1.00% of the proceeds of the redeemed shares. These fees, which are retained by the funds, are accounted for as an addition to paid in capital.
Security Transactions. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost.
2. Operating Policies.
Foreign Currency Contracts. Certain funds use foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms. The U.S. dollar value of foreign currency contracts is determined using contractual currency exchange rates established at the time of each trade.
Joint Trading Account. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (the SEC), certain funds, along with other affiliated entities of Fidelity Management & Research Company (FMR), may transfer uninvested cash balances into one or more joint trading accounts. These balances are invested in one or more repurchase agreements for U.S. Treasury or Federal Agency obligations.
Repurchase Agreements. The underlying U.S. Treasury, Federal Agency, or other obligations found to be satisfactory by FMR are transferred to an account of the funds, or to the Joint Trading Account, at a custodian bank. The securities are marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest). FMR, the funds' investment adviser, is responsible for determining that the value of the underlying securities remains in accordance with the market value requirements stated above.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the funds, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating funds. Information regarding each fund's participation in the program is included under the caption "Other Information" at the end of each applicable fund's schedule of investments.
Restricted Securities. Certain funds are permitted to invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included under the caption "Other Information" at the end of each applicable fund's schedule of investments.
3. Purchases and Sales of Investments.
Information regarding purchases and sales of securities (other than short-term securities), is included under the caption "Other Information" at the end of each applicable fund's schedule of investments.
4. Fees and Other Transactions with Affiliates.
Management Fee. As each fund's investment adviser, FMR receives a monthly basic fee that is calculated on the basis of a group fee rate plus a fixed individual fund fee rate applied to the average net assets of each fund. The group fee rate is the weighted average of a series of rates and is based on the monthly average net assets of all the mutual funds advised by FMR. The rates ranged from .2167% to .5200% for the period. The annual individual fund fee rate is .45%. In the event that these rates were lower than the contractual rates in effect during the period, FMR voluntarily implemented the above rates, as they resulted in the same or a lower management fee. The basic fee for Canada, Europe, Europe Capital Appreciation, Japan, Pacific Basin, and Southeast Asia is subject to a performance adjustment (up to a maximum of ±.20% of the fund's average net assets over the performance period) based on each fund's investment performance as compared to the appropriate index over a specified period of time. For the period, the management fees were equivalent to the following annualized rates expressed as a percentage of average net assets after the performance adjustment, if applicable:
Canada |
.80% |
China Region |
.73% |
Emerging Markets |
.73% |
Europe |
.66% |
Europe Capital Appreciation |
.84% |
Japan |
.98% |
Japan Smaller Companies |
.73% |
Latin America |
.73% |
Nordic |
.73% |
Pacific Basin |
.96% |
Southeast Asia |
.98% |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Fees and Other Transactions with Affiliates - continued
Sub-Adviser Fee. FMR Co., Inc. (FMRC) serves as a sub-adviser for the funds. FMRC may provide investment research and advice and may also provide investment advisory services for the funds. FMR, on behalf of the funds, has also entered into sub-advisory agreements with Fidelity Management & Research (U.K.) Inc., Fidelity Management & Research (Far East) Inc., and Fidelity International Investment Advisors (FIIA). FMR may receive investment advice and research services and may grant the sub-advisers investment management authority to buy and sell securities. FMR pays its sub-advisers either a portion of its management fee or a fee based on costs incurred for these services.
Sales Load. Fidelity Distributors Corporation (FDC), an affiliate of FMR, is the general distributor of the fund. FDC receives a sales charge of up to 3% for selling shares of each fund except Europe and Europe Capital Appreciation. Shares of Canada, Europe, and Pacific Basin purchased prior to October 12, 1990, are subject to a 1% deferred sales charge upon redemption. Effective March 1, 2000, Europe and Europe Capital Appreciation's 3% sales charges were eliminated. The amounts received by FDC for sales charges are retained by FDC. The amounts received by FDC for sales charges and deferred sales charges are shown under the caption "Other Information" on each applicable fund's Statement of Operations.
Transfer Agent Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, is the funds' transfer, dividend disbursing and shareholder servicing agent. FSC receives account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of all shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to the following annualized rates as a percentage of the average net assets:
Canada |
.28% |
China Region |
.32% |
Emerging Markets |
.46% |
Europe |
.26% |
Europe Capital Appreciation |
.24% |
Japan |
.28% |
Japan Smaller Companies |
.34% |
Latin America |
.33% |
Nordic |
.29% |
Pacific Basin |
.33% |
Southeast Asia |
.32% |
Accounting and Security Lending Fees. FSC maintains each fund's accounting records and administers the security lending program. The security lending fee is based on the number and duration of lending transactions. The accounting fee is based on the level of average net assets for the month plus out-of-pocket expenses.
Fidelity Cash Central Funds. Pursuant to an Exemptive Order issued by the SEC, the funds may invest in the Fidelity Cash Central Fund and the Fidelity Securities Lending Cash Central Fund (the Cash Funds) managed by Fidelity Investments Money Management, Inc., an affiliate of FMR. The Cash Funds are open-end money market funds available only to investment companies and other accounts managed by FMR and its affiliates. The Cash Funds seek preservation of capital, liquidity, and current income and do not pay a management fee. Income distributions from the Cash Funds are declared daily and paid monthly from net investment income. Income distributions earned by the funds are recorded as either interest income or security lending income in the accompanying financial statements.
Brokerage Commissions. Certain funds placed a portion of their portfolio transactions with brokerage firms which are affiliates of FMR. The commissions paid to these affiliated firms are shown under the caption "Other Information" at the end of each applicable fund's schedule of investments.
5. Committed Line of Credit.
Certain funds participate with other funds managed by FMR in a $3.475 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The funds have agreed to pay commitment fees on their pro rata portion of the line of credit. During the period the funds had no borrowings on this line of credit.
6. Security Lending.
Certain funds lend portfolio securities from time to time in order to earn additional income. Each applicable fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the funds and any additional required collateral is delivered to the funds on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Cash collateral is invested in cash equivalents. The value of loaned securities and cash collateral at period end are disclosed on each applicable fund's Statement of Assets and Liabilities. Additional information regarding security lending is included under the caption "Other Information" at the end of the fund's schedule of investments.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Bank Borrowings.
Each fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions. Each fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. Information regarding a fund's participation in the program is included under the caption "Other Information" at the end of each applicable fund's schedule of investments.
8. Expense Reductions.
FMR has directed certain portfolio trades to brokers who paid a portion of the fund's expenses.
In addition, through arrangements with certain funds' custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce a portion of each applicable fund's expenses. For the period, the reductions under these arrangements are shown under the caption "Other Information" on each applicable fund's Statement of Operations.
9. Beneficial Interest.
At the end of the period, FMR and its affiliates were record owners of more than 5% of the outstanding shares of the following funds:
Fund |
|
% Ownership |
Fidelity Japan |
|
7% |
Fidelity Japan Smaller Companies |
|
21% |
10. Transactions with Affiliated Companies.
An affiliated company is a company which the fund has ownership of at least 5% of the voting securities. Information regarding transactions with affiliated companies is included in "Other Information" at the end of each applicable fund's schedule of investments.
11. Litigation.
Fidelity Latin America Fund is engaged in litigation against the obligor on the inflation adjusted debt of Siderurgica Brasileiras SA, contesting the calculation of the principal adjustment. The probability of success of this litigation cannot be predicted and the amount of recovery cannot be estimated. Any recovery from this litigation would inure to the benefit of the fund. As of period end, the fund no longer holds Siderurgica Brasileiras SA debt securities.
12. Merger Information.
On July 24, 2000, July 26, 2000 and July 28, 2000, Fidelity Europe Fund acquired all of the assets and assumed all of the liabilities of Fidelity United Kingdom Fund, Fidelity Germany Fund and Fidelity France Fund (the acquired funds), respectively. The acquisitions, which were approved by the shareholders of the acquired funds on July 19, 2000, was accomplished by an exchange of 1,625,579 shares of the Fidelity Europe Fund for the 276,623 shares then outstanding (each valued at $13.31) of Fidelity United Kingdom Fund; for the 2,341,353 shares then outstanding (each valued at $19.94) of Fidelity Germany Fund; and for the 613,547 shares then outstanding (each valued at $20.22) of Fidelity France Fund.
The following table shows the net assets Europe Fund received in exchange for the shares issued from the following funds as a result of the merger:
Acquired Fund |
|
Net Asset Value |
Fidelity France Fund |
$12,405,920 |
|
Fidelity Germany Fund |
$46,686,578 |
|
Fidelity United Kingdom Fund |
$ 3,681,852 |
Based on the opinion of fund counsel, the reorganization qualified as a tax-free reorganization for federal income tax purposes with no gain or loss recognized to the funds or their shareholders. The acquired funds net assets, included $470,489, $5,561,612 and $2,749,870 of unrealized appreciation from Fidelity United Kingdom Fund, Fidelity Germany Fund and Fidelity France Fund, were combined with Fidelity Europe Fund. The total net assets of Fidelity Europe Fund were $1,558,908,897 after the acquisition of Fidelity United Kingdom Fund; $1,606,679,049 after the acquisition of Fidelity Germany Fund; and were $1,556,034,114 after the acquisition of Fidelity France Fund.
Semiannual Report
A special meeting of the fund's shareholders was held on February 14, 2001. The results of votes taken among shareholders on proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 |
||
To authorize the Trustees to adopt an amended and restated Declaration of Trust.*(dagger) |
||
|
# of |
% of |
Affirmative |
8,105,735,718.23 |
89.848 |
Against |
412,104,756.57 |
4.568 |
Abstain |
373,548,817.79 |
4.141 |
TOTAL |
8,891,389,292.59 |
98.557 |
Broker Non-Votes |
130,179,335.06 |
|
PROPOSAL 2 |
||
To elect as Trustees the fourteen nominees presented in Proposal 2.*(dagger) |
||
|
# of |
% of |
J. Michael Cook |
||
Affirmative |
8,789,445,363.70 |
97.427 |
Withheld |
232,123,263.95 |
2.573 |
TOTAL |
9,021,568,627.65 |
100.000 |
Ralph F. Cox |
||
Affirmative |
8,779,208,127.83 |
97.314 |
Withheld |
242,360,499.82 |
2.686 |
TOTAL |
9,021,568,627.65 |
100.000 |
Phyllis Burke Davis |
||
Affirmative |
8,774,733,750.55 |
97.264 |
Withheld |
246,834,877.10 |
2.736 |
TOTAL |
9,021,568,627.65 |
100.000 |
Robert M. Gates |
||
Affirmative |
8,781,750,883.82 |
97.342 |
Withheld |
239,817,743.83 |
2.658 |
TOTAL |
9,021,568,627.65 |
100.000 |
Abigail P. Johnson |
||
Affirmative |
8,773,804,737.72 |
97.254 |
Withheld |
247,763,889.93 |
2.746 |
TOTAL |
9,021,568,627.65 |
100.000 |
Edward C. Johnson 3d |
||
Affirmative |
8,777,543,686.58 |
97.295 |
Withheld |
244,024,941.07 |
2.705 |
TOTAL |
9,021,568,627.65 |
100.000 |
Donald J. Kirk |
||
Affirmative |
8,782,254,140.18 |
97.347 |
Withheld |
239,314,487.47 |
2.653 |
TOTAL |
9,021,568,627.65 |
100.000 |
Marie L. Knowles |
||
Affirmative |
8,790,015,911.33 |
97.433 |
Withheld |
231,552,716.32 |
2.567 |
TOTAL |
9,021,568,627.65 |
100.000 |
|
# of |
% of |
Ned C. Lautenbach |
||
Affirmative |
8,793,142,274.68 |
97.468 |
Withheld |
228,426,352.97 |
2.532 |
TOTAL |
9,021,568,627.65 |
100.000 |
Peter S. Lynch |
||
Affirmative |
8,793,385,538.66 |
97.471 |
Withheld |
228,183,088.99 |
2.529 |
TOTAL |
9,021,568,627.65 |
100.000 |
Marvin L. Mann |
||
Affirmative |
8,786,258,106.35 |
97.392 |
Withheld |
235,310,521.30 |
2.608 |
TOTAL |
9,021,568,627.65 |
100.000 |
William O. McCoy |
||
Affirmative |
8,785,900,601.01 |
97.388 |
Withheld |
235,668,026.64 |
2.612 |
TOTAL |
9,021,568,627.65 |
100.000 |
Robert C. Pozen |
||
Affirmative |
8,789,283,225.77 |
97.425 |
Withheld |
232,285,401.88 |
2.575 |
TOTAL |
9,021,568,627.65 |
100.000 |
William S. Stavropoulos |
||
Affirmative |
8,783,577,909.55 |
97.362 |
Withheld |
237,990,718.10 |
2.638 |
TOTAL |
9,021,568,627.65 |
100.000 |
PROPOSAL 3 |
||
To ratify the selection of PricewaterhouseCoopers LLP as independent accountants of the funds (except Europe Capital Appreciation Fund). |
||
|
# of |
% of |
Fidelity Canada Fund |
||
Affirmative |
71,974,187.99 |
96.356 |
Against |
974,915.38 |
1.305 |
Abstain |
1,747,374.10 |
2.339 |
TOTAL |
74,696,477.47 |
100.000 |
Fidelity China Region Fund |
||
Affirmative |
83,605,069.99 |
95.146 |
Against |
1,304,090.90 |
1.484 |
Abstain |
2,961,482.73 |
3.370 |
TOTAL |
87,870,643.62 |
100.000 |
Fidelity Emerging Markets Fund |
||
Affirmative |
128,060,964.11 |
93.891 |
Against |
2,969,727.06 |
2.178 |
Abstain |
5,362,157.66 |
3.931 |
TOTAL |
136,392,848.83 |
100.000 |
PROPOSAL 3 - continued |
||
|
# of |
% of |
Fidelity Europe Fund |
||
Affirmative |
656,645,432.35 |
94.893 |
Against |
11,708,505.56 |
1.692 |
Abstain |
23,628,783.56 |
3.415 |
TOTAL |
691,982,721.47 |
100.000 |
Fidelity Japan Fund(dagger) |
||
Affirmative |
266,745,427.67 |
94.844 |
Against |
5,194,915.86 |
1.847 |
Abstain |
9,307,301.16 |
3.309 |
TOTAL |
281,247,644.69 |
100.000 |
Fidelity Japan Smaller Companies Fund(dagger) |
||
Affirmative |
229,537,417.41 |
95.304 |
Against |
5,094,866.72 |
2.116 |
Abstain |
6,214,116.04 |
2.580 |
TOTAL |
240,846,400.17 |
100.000 |
Fidelity Latin America Fund |
||
Affirmative |
125,000,946.16 |
94.893 |
Against |
3,529,506.93 |
2.679 |
Abstain |
3,198,499.55 |
2.428 |
TOTAL |
131,728,952.64 |
100.000 |
Fidelity Nordic Fund |
||
Affirmative |
87,338,352.38 |
94.704 |
Against |
1,608,098.70 |
1.744 |
Abstain |
3,275,746.12 |
3.552 |
TOTAL |
92,222,197.20 |
100.000 |
Fidelity Pacific Basin Fund(dagger) |
||
Affirmative |
213,923,719.91 |
93.963 |
Against |
4,354,240.31 |
1.912 |
Abstain |
9,390,628.32 |
4.125 |
TOTAL |
227,668,588.54 |
100.000 |
Fidelity Southeast Asia Fund |
||
Affirmative |
137,196,527.01 |
95.448 |
Against |
3,182,353.24 |
2.214 |
Abstain |
3,360,179.25 |
2.338 |
TOTAL |
143,739,059.50 |
100.000 |
To ratify the selection of Deloitte & Touche LLP as independent accountants of Fidelity Europe Capital Appreciation Fund. |
||
|
# of |
% of |
Affirmative |
283,470,238.76 |
95.866 |
Against |
3,849,154.15 |
1.301 |
Abstain |
8,375,757.25 |
2.833 |
TOTAL |
295,695,150.16 |
100.000 |
PROPOSAL 4 |
||
To approve an amended management contract for Fidelity Pacific Basin Fund that would change the performance adjustment benchmark, reduce the management fee rate payable to FMR by the fund as FMR's assets under management increase, and allow future modifications of the contract without a shareholder vote if permitted by the 1940 Act.(dagger) |
||
|
# of |
% of |
Affirmative |
205,114,243.20 |
90.093 |
Against |
11,122,796.25 |
4.886 |
Abstain |
11,431,549.09 |
5.021 |
TOTAL |
227,668,588.54 |
100.000 |
PROPOSAL 5 |
||
To approve an amended management contract that would reduce the management fee payable to FMR by the fund as FMR's assets under management increase, and allow future modifications of the contract without a shareholder vote if permitted by the 1940 Act. |
||
|
# of |
% of |
Fidelity Canada Fund |
||
Affirmative |
68,917,617.75 |
92.264 |
Against |
2,805,003.30 |
3.755 |
Abstain |
2,973,856.42 |
3.981 |
TOTAL |
74,696,477.47 |
100.000 |
Fidelity China Region Fund |
||
Affirmative |
80,379,431.00 |
91.475 |
Against |
2,964,430.98 |
3.373 |
Abstain |
4,526,781.64 |
5.152 |
TOTAL |
87,870,643.62 |
100.000 |
Fidelity Emerging Markets Fund |
||
Affirmative |
123,942,262.91 |
90.872 |
Against |
5,465,454.41 |
4.007 |
Abstain |
6,985,131.51 |
5.121 |
TOTAL |
136,392,848.83 |
100.000 |
Fidelity Europe Fund |
||
Affirmative |
631,345,978.30 |
91.237 |
Against |
29,830,200.21 |
4.311 |
Abstain |
30,806,542.96 |
4.452 |
TOTAL |
691,982,721.47 |
100.000 |
Fidelity Europe Capital Appreciation Fund |
||
Affirmative |
274,432,737.81 |
92.809 |
Against |
9,199,583.56 |
3.112 |
Abstain |
12,062,828.79 |
4.079 |
TOTAL |
295,695,150.16 |
100.000 |
Fidelity Japan Fund(dagger) |
||
Affirmative |
254,612,573.82 |
90.530 |
Against |
14,518,482.33 |
5.162 |
Abstain |
12,116,588.54 |
4.308 |
TOTAL |
281,247,644.69 |
100.000 |
Fidelity Japan Smaller Companies Fund(dagger) |
||
Affirmative |
224,253,150.54 |
93.110 |
Against |
8,913,997.71 |
3.702 |
Abstain |
7,679,251.92 |
3.188 |
TOTAL |
240,846,400.17 |
100.000 |
PROPOSAL 5 - continued |
||
|
# of |
% of |
Fidelity Latin America Fund |
||
Affirmative |
119,469,583.39 |
90.693 |
Against |
7,026,680.61 |
5.335 |
Abstain |
5,232,688.64 |
3.972 |
TOTAL |
131,728,952.64 |
100.000 |
Fidelity Nordic Fund |
||
Affirmative |
84,532,297.81 |
91.662 |
Against |
3,301,977.18 |
3.580 |
Abstain |
4,387,922.21 |
4.758 |
TOTAL |
92,222,197.20 |
100.000 |
Fidelity Southeast Asia Fund |
||
Affirmative |
129,817,652.95 |
90.315 |
Against |
9,181,852.90 |
6.388 |
Abstain |
4,739,553.65 |
3.297 |
TOTAL |
143,739,059.50 |
100.000 |
PROPOSAL 6 |
||
To approve an amended sub-advisory agreement with FMR U.K. to allow future modifications of the contract without a shareholder vote if permitted by the 1940 Act. |
||
|
# of |
% of |
Fidelity Canada Fund |
||
Affirmative |
68,334,517.21 |
91.483 |
Against |
2,932,130.11 |
3.925 |
Abstain |
3,429,830.15 |
4.592 |
TOTAL |
74,696,477.47 |
100.000 |
Fidelity China Region Fund |
||
Affirmative |
79,853,814.59 |
90.877 |
Against |
3,421,701.61 |
3.894 |
Abstain |
4,595,127.42 |
5.229 |
TOTAL |
87,870,643.62 |
100.000 |
Fidelity Emerging Markets Fund |
||
Affirmative |
123,399,984.65 |
90.474 |
Against |
5,809,546.66 |
4.259 |
Abstain |
7,183,317.52 |
5.267 |
TOTAL |
136,392,848.83 |
100.000 |
Fidelity Europe Fund |
||
Affirmative |
624,006,953.88 |
90.177 |
Against |
34,661,054.97 |
5.009 |
Abstain |
33,314,712.62 |
4.814 |
TOTAL |
691,982,721.47 |
100.000 |
Fidelity Europe Capital Appreciation Fund |
||
Affirmative |
273,359,370.14 |
92.446 |
Against |
9,699,687.79 |
3.281 |
Abstain |
12,636,092.23 |
4.273 |
TOTAL |
295,695,150.16 |
100.000 |
Fidelity Japan Fund(dagger) |
||
Affirmative |
252,662,850.29 |
89.836 |
Against |
16,269,707.87 |
5.785 |
Abstain |
12,315,086.53 |
4.379 |
TOTAL |
281,247,644.69 |
100.000 |
|
||
|
# of |
% of |
Fidelity Japan Smaller Companies Fund(dagger) |
||
Affirmative |
224,038,263.51 |
93.021 |
Against |
8,540,965.38 |
3.546 |
Abstain |
8,267,171.28 |
3.433 |
TOTAL |
240,846,400.17 |
100.000 |
Fidelity Latin America Fund |
||
Affirmative |
118,487,534.98 |
89.948 |
Against |
7,546,161.62 |
5.729 |
Abstain |
5,695,256.04 |
4.323 |
TOTAL |
131,728,952.64 |
100.000 |
Fidelity Nordic Fund |
||
Affirmative |
82,062,084.14 |
88.983 |
Against |
4,811,262.51 |
5.217 |
Abstain |
5,348,850.55 |
5.800 |
TOTAL |
92,222,197.20 |
100.000 |
Fidelity Pacific Basin Fund(dagger) |
||
Affirmative |
204,275,383.40 |
89.725 |
Against |
11,079,106.36 |
4.866 |
Abstain |
12,314,098.78 |
5.409 |
TOTAL |
227,668,588.54 |
100.000 |
Fidelity Southeast Asia Fund |
||
Affirmative |
128,820,649.78 |
89.621 |
Against |
9,703,759.72 |
6.751 |
Abstain |
5,214,650.00 |
3.628 |
TOTAL |
143,739,059.50 |
100.000 |
PROPOSAL 7 |
||
To approve an amended sub-advisory agreement with FMR Far East to allow future modifications of the contract without a shareholder vote if permitted by the 1940 Act. |
||
|
# of |
% of |
Fidelity Canada Fund |
||
Affirmative |
68,148,046.72 |
91.233 |
Against |
3,063,902.50 |
4.102 |
Abstain |
3,484,528.25 |
4.665 |
TOTAL |
74,696,477.47 |
100.000 |
Fidelity China Region Fund |
||
Affirmative |
80,091,135.95 |
91.147 |
Against |
3,390,064.94 |
3.858 |
Abstain |
4,389,442.73 |
4.995 |
TOTAL |
87,870,643.62 |
100.000 |
Fidelity Emerging Markets Fund |
||
Affirmative |
123,100,325.09 |
90.254 |
Against |
5,913,048.19 |
4.336 |
Abstain |
7,379,475.55 |
5.410 |
TOTAL |
136,392,848.83 |
100.000 |
Fidelity Europe Fund |
||
Affirmative |
621,723,112.28 |
89.847 |
Against |
34,970,537.23 |
5.053 |
Abstain |
35,289,071.96 |
5.100 |
TOTAL |
691,982,721.47 |
100.000 |
PROPOSAL 7 - continued |
||
|
# of |
% of |
Fidelity Europe Capital Appreciation Fund |
||
Affirmative |
272,658,747.80 |
92.209 |
Against |
9,977,025.71 |
3.374 |
Abstain |
13,059,376.65 |
4.417 |
TOTAL |
295,695,150.16 |
100.000 |
Fidelity Japan Fund(dagger) |
||
Affirmative |
252,683,269.67 |
89.844 |
Against |
16,238,382.32 |
5.773 |
Abstain |
12,325,992.70 |
4.383 |
TOTAL |
281,247,644.69 |
100.000 |
Fidelity Japan Smaller Companies Fund(dagger) |
||
Affirmative |
223,510,615.97 |
92.802 |
Against |
9,249,585.49 |
3.841 |
Abstain |
8,086,198.71 |
3.357 |
TOTAL |
240,846,400.17 |
100.000 |
Fidelity Latin America Fund |
||
Affirmative |
118,286,665.94 |
89.795 |
Against |
7,972,473.56 |
6.053 |
Abstain |
5,469,813.14 |
4.152 |
TOTAL |
131,728,952.64 |
100.000 |
Fidelity Nordic Fund |
||
Affirmative |
81,281,374.62 |
88.136 |
Against |
4,785,220.86 |
5.189 |
Abstain |
6,155,601.72 |
6.675 |
TOTAL |
92,222,197.20 |
100.000 |
Fidelity Pacific Basin Fund(dagger) |
||
Affirmative |
204,450,373.13 |
89.802 |
Against |
10,913,039.19 |
4.793 |
Abstain |
12,305,176.22 |
5.405 |
TOTAL |
227,668,588.54 |
100.000 |
Fidelity Southeast Asia Fund |
||
Affirmative |
128,928,286.18 |
89.696 |
Against |
9,793,373.47 |
6.813 |
Abstain |
5,017,399.85 |
3.491 |
TOTAL |
143,739,059.50 |
100.000 |
PROPOSAL 8 |
||
To approve an amended sub-advisory agreement with FIIA to allow future modifications of the contract without a shareholder vote if permitted by the 1940 Act. |
||
|
# of |
% of |
Fidelity Canada Fund |
||
Affirmative |
68,335,715.97 |
91.485 |
Against |
2,914,789.30 |
3.902 |
Abstain |
3,445,972.20 |
4.613 |
TOTAL |
74,696,477.47 |
100.000 |
Fidelity China Region Fund |
||
Affirmative |
79,806,897.92 |
90.823 |
Against |
3,397,749.40 |
3.867 |
Abstain |
4,665,996.30 |
5.310 |
TOTAL |
87,870,643.62 |
100.000 |
|
||
|
# of |
% of |
Fidelity Emerging Markets Fund |
||
Affirmative |
123,136,557.65 |
90.281 |
Against |
5,887,776.95 |
4.317 |
Abstain |
7,368,514.23 |
5.402 |
TOTAL |
136,392,848.83 |
100.000 |
Fidelity Europe Fund |
||
Affirmative |
623,518,480.46 |
90.106 |
Against |
34,939,097.43 |
5.049 |
Abstain |
33,525,143.58 |
4.845 |
TOTAL |
691,982,721.47 |
100.000 |
Fidelity Europe Capital Appreciation Fund |
||
Affirmative |
273,018,988.02 |
92.331 |
Against |
9,865,238.56 |
3.337 |
Abstain |
12,810,923.58 |
4.332 |
TOTAL |
295,695,150.16 |
100.000 |
Fidelity Japan Fund(dagger) |
||
Affirmative |
252,768,822.33 |
89.874 |
Against |
16,195,013.53 |
5.758 |
Abstain |
12,283,808.83 |
4.368 |
TOTAL |
281,247,644.69 |
100.000 |
Fidelity Japan Smaller Companies Fund(dagger) |
||
Affirmative |
223,587,227.36 |
92.834 |
Against |
9,126,139.10 |
3.789 |
Abstain |
8,133,033.71 |
3.377 |
TOTAL |
240,846,400.17 |
100.000 |
Fidelity Latin America Fund |
||
Affirmative |
118,494,641.24 |
89.953 |
Against |
7,966,125.90 |
6.048 |
Abstain |
5,268,185.50 |
3.999 |
TOTAL |
131,728,952.64 |
100.000 |
Fidelity Nordic Fund |
||
Affirmative |
81,924,204.37 |
88.833 |
Against |
4,998,617.52 |
5.421 |
Abstain |
5,299,375.31 |
5.746 |
TOTAL |
92,222,197.20 |
100.000 |
Fidelity Pacific Basin Fund(dagger) |
||
Affirmative |
204,595,191.65 |
89.865 |
Against |
11,046,313.95 |
4.852 |
Abstain |
12,027,082.94 |
5.283 |
TOTAL |
227,668,588.54 |
100.000 |
Fidelity Southeast Asia Fund |
||
Affirmative |
128,974,485.94 |
89.728 |
Against |
9,638,807.38 |
6.706 |
Abstain |
5,125,766.18 |
3.566 |
TOTAL |
143,739,059.50 |
100.000 |
PROPOSAL 9 |
||
To approve an amended sub-advisory agreement between FIIA and FIIA(U.K.)L to allow future modifications of the contract without a shareholder vote if permitted by the 1940 Act. |
||
|
# of |
% of |
Fidelity Canada Fund |
||
Affirmative |
68,228,894.49 |
91.342 |
Against |
2,988,218.60 |
4.000 |
Abstain |
3,479,364.38 |
4.658 |
TOTAL |
74,696,477.47 |
100.000 |
Fidelity China Region Fund |
||
Affirmative |
79,718,279.73 |
90.722 |
Against |
3,416,869.97 |
3.889 |
Abstain |
4,735,493.92 |
5.389 |
TOTAL |
87,870,643.62 |
100.000 |
Fidelity Emerging Markets Fund |
||
Affirmative |
123,221,636.78 |
90.343 |
Against |
5,941,735.88 |
4.357 |
Abstain |
7,229,476.17 |
5.300 |
TOTAL |
136,392,848.83 |
100.000 |
Fidelity Europe Fund |
||
Affirmative |
622,879,439.63 |
90.014 |
Against |
35,382,994.94 |
5.113 |
Abstain |
33,720,286.90 |
4.873 |
TOTAL |
691,982,721.47 |
100.000 |
Fidelity Europe Capital Appreciation Fund |
||
Affirmative |
273,251,858.57 |
92.410 |
Against |
9,834,035.25 |
3.326 |
Abstain |
12,609,256.34 |
4.264 |
TOTAL |
295,695,150.16 |
100.000 |
Fidelity Japan Fund(dagger) |
||
Affirmative |
252,343,617.64 |
89.723 |
Against |
16,368,536.01 |
5.820 |
Abstain |
12,535,491.04 |
4.457 |
TOTAL |
281,247,644.69 |
100.000 |
Fidelity Japan Smaller Companies Fund(dagger) |
||
Affirmative |
223,896,972.15 |
92.963 |
Against |
8,722,890.94 |
3.621 |
Abstain |
8,226,537.08 |
3.416 |
TOTAL |
240,846,400.17 |
100.000 |
Fidelity Latin America Fund |
||
Affirmative |
118,104,487.05 |
89.657 |
Against |
7,926,384.92 |
6.017 |
Abstain |
5,698,080.67 |
4.326 |
TOTAL |
131,728,952.64 |
100.000 |
Fidelity Nordic Fund |
||
Affirmative |
82,118,751.45 |
89.044 |
Against |
4,582,360.62 |
4.969 |
Abstain |
5,521,085.13 |
5.987 |
TOTAL |
92,222,197.20 |
100.000 |
|
||
|
# of |
% of |
Fidelity Pacific Basin Fund(dagger) |
||
Affirmative |
203,808,147.63 |
89.520 |
Against |
11,457,965.35 |
5.032 |
Abstain |
12,402,475.56 |
5.448 |
TOTAL |
227,668,588.54 |
100.000 |
Fidelity Southeast Asia Fund |
||
Affirmative |
128,789,590.91 |
89.600 |
Against |
9,764,326.09 |
6.793 |
Abstain |
5,185,142.50 |
3.607 |
TOTAL |
143,739,059.50 |
100.000 |
PROPOSAL 10 |
||
To approve an amended sub-advisory agreement between FIIA and FIJ to allow future modifications of the contract without a shareholder vote if permitted by the 1940 Act. |
||
|
# of |
% of |
Fidelity China Region Fund |
||
Affirmative |
79,969,115.05 |
91.008 |
Against |
3,437,222.72 |
3.911 |
Abstain |
4,464,305.85 |
5.081 |
TOTAL |
87,870,643.62 |
100.000 |
Fidelity Emerging Markets Fund |
||
Affirmative |
122,926,300.56 |
90.127 |
Against |
6,141,433.93 |
4.502 |
Abstain |
7,325,114.34 |
5.371 |
TOTAL |
136,392,848.83 |
100.000 |
Fidelity Japan Fund(dagger) |
||
Affirmative |
253,503,853.51 |
90.135 |
Against |
15,693,640.19 |
5.580 |
Abstain |
12,050,150.99 |
4.285 |
TOTAL |
281,247,644.69 |
100.000 |
Fidelity Japan Smaller Companies Fund(dagger) |
||
Affirmative |
223,554,661.18 |
92.820 |
Against |
9,575,574.46 |
3.976 |
Abstain |
7,716,164.53 |
3.204 |
TOTAL |
240,846,400.17 |
100.000 |
Fidelity Pacific Basin Fund(dagger) |
||
Affirmative |
203,999,000.32 |
89.603 |
Against |
11,313,067.34 |
4.970 |
Abstain |
12,356,520.88 |
5.427 |
TOTAL |
227,668,588.54 |
100.000 |
Fidelity Southeast Asia Fund |
||
Affirmative |
128,695,949.09 |
89.534 |
Against |
9,690,718.87 |
6.742 |
Abstain |
5,352,391.54 |
3.724 |
TOTAL |
143,739,059.50 |
100.000 |
PROPOSAL 11 |
||
To approve a Distribution and Service Plan pursuant to Rule 12b-1. |
||
|
# of |
% of |
Fidelity Canada Fund |
||
Affirmative |
66,307,948.50 |
88.770 |
Against |
5,036,294.63 |
6.742 |
Abstain |
3,352,234.34 |
4.488 |
TOTAL |
74,696,477.47 |
100.000 |
Fidelity China Region Fund |
||
Affirmative |
78,409,194.73 |
89.233 |
Against |
5,102,421.02 |
5.806 |
Abstain |
4,359,027.87 |
4.961 |
TOTAL |
87,870,643.62 |
100.000 |
Fidelity Emerging Markets Fund |
||
Affirmative |
121,060,847.73 |
88.759 |
Against |
8,551,699.32 |
6.270 |
Abstain |
6,780,301.78 |
4.971 |
TOTAL |
136,392,848.83 |
100.000 |
Fidelity Europe Fund |
||
Affirmative |
609,719,835.91 |
88.112 |
Against |
48,673,878.02 |
7.034 |
Abstain |
33,589,007.54 |
4.854 |
TOTAL |
691,982,721.47 |
100.000 |
Fidelity Europe Capital Appreciation Fund |
||
Affirmative |
265,670,196.02 |
89.846 |
Against |
17,318,609.80 |
5.857 |
Abstain |
12,706,344.34 |
4.297 |
TOTAL |
295,695,150.16 |
100.000 |
Fidelity Japan Fund(dagger) |
||
Affirmative |
245,638,294.59 |
87.339 |
Against |
22,887,574.92 |
8.138 |
Abstain |
12,721,775.18 |
4.523 |
TOTAL |
281,247,644.69 |
100.000 |
Fidelity Japan Smaller Companies Fund(dagger) |
||
Affirmative |
219,946,098.64 |
91.322 |
Against |
12,511,213.23 |
5.195 |
Abstain |
8,389,088.30 |
3.483 |
TOTAL |
240,846,400.17 |
100.000 |
Fidelity Latin America Fund |
||
Affirmative |
115,523,561.44 |
87.698 |
Against |
10,225,965.52 |
7.763 |
Abstain |
5,979,425.68 |
4.539 |
TOTAL |
131,728,952.64 |
100.000 |
Fidelity Nordic Fund |
||
Affirmative |
81,292,875.33 |
88.149 |
Against |
5,836,362.58 |
6.329 |
Abstain |
5,092,959.29 |
5.522 |
TOTAL |
92,222,197.20 |
100.000 |
Fidelity Pacific Basin Fund(dagger) |
||
Affirmative |
201,895,288.33 |
88.679 |
Against |
13,247,356.25 |
5.819 |
Abstain |
12,525,943.96 |
5.502 |
TOTAL |
227,668,588.54 |
100.000 |
|
||
|
# of |
% of |
Fidelity Southeast Asia Fund |
||
Affirmative |
125,436,960.65 |
87.267 |
Against |
12,966,094.07 |
9.021 |
Abstain |
5,336,004.78 |
3.712 |
TOTAL |
143,739,059.50 |
100.000 |
PROPOSAL 12 |
||
To change Fidelity Emerging Markets Fund's policies concerning diversification. |
||
|
# of |
% of |
Affirmative |
122,266,570.10 |
89.643 |
Against |
7,507,526.15 |
5.504 |
Abstain |
6,618,752.58 |
4.853 |
TOTAL |
136,392,848.83 |
100.000 |
PROPOSAL 13 |
||
To change Fidelity Latin America Fund's policies concerning diversification. |
||
|
# of |
% of |
Affirmative |
119,119,181.69 |
90.427 |
Against |
8,053,742.89 |
6.114 |
Abstain |
4,556,028.06 |
3.459 |
TOTAL |
131,728,952.64 |
100.000 |
PROPOSAL 14 |
||
To change Fidelity Southeast Asia Fund's policies concerning diversification. |
||
|
# of |
% of |
Affirmative |
128,665,410.27 |
89.513 |
Against |
10,082,934.10 |
7.015 |
Abstain |
4,990,715.13 |
3.472 |
TOTAL |
143,739,059.50 |
100.000 |
PROPOSAL 15 |
||
To change Fidelity Canada Fund's policies concerning diversification. |
||
|
# of |
% of |
Affirmative |
67,225,429.86 |
89.998 |
Against |
4,286,669.62 |
5.739 |
Abstain |
3,184,377.99 |
4.263 |
TOTAL |
74,696,477.47 |
100.000 |
PROPOSAL 16 |
||
To change Fidelity Canada Fund's policy concerning industry concentration. |
||
|
# of |
% of |
Affirmative |
67,421,075.15 |
90.260 |
Against |
4,150,335.73 |
5.556 |
Abstain |
3,125,066.59 |
4.184 |
TOTAL |
74,696,477.47 |
100.000 |
PROPOSAL 17 |
||
To change Fidelity China Region Fund's policy concering industry concentration. |
||
|
# of |
% of |
Affirmative |
80,753,776.21 |
91.901 |
Against |
2,948,051.79 |
3.355 |
Abstain |
4,168,815.62 |
4.744 |
TOTAL |
87,870,643.62 |
100.000 |
PROPOSAL 18 |
||
To eliminate a fundamental investment policy and modify a related non-fundamental policy of Fidelity Canada Fund. |
||
|
# of |
% of |
Affirmative |
67,291,989.75 |
90.087 |
Against |
4,210,803.64 |
5.637 |
Abstain |
3,193,684.08 |
4.276 |
TOTAL |
74,696,477.47 |
100.000 |
PROPOSAL 19 |
||
To eliminate a fundamental investment policy and modify a related non-fundamental policy of Fidelity Europe Fund. |
||
|
# of |
% of |
Affirmative |
611,774,064.98 |
88.409 |
Against |
44,376,349.97 |
6.413 |
Abstain |
35,832,306.52 |
5.178 |
TOTAL |
691,982,721.47 |
100.000 |
PROPOSAL 20 |
||
To modify Fidelity Latin America Fund's fundamental investment objective. |
||
|
# of |
% of |
Affirmative |
119,514,407.80 |
90.728 |
Against |
7,314,901.79 |
5.553 |
Abstain |
4,899,643.05 |
3.719 |
TOTAL |
131,728,952.64 |
100.000 |
PROPOSAL 21 |
||
To eliminate a fundamental investment policy and modify a related non-fundamental policy of Fidelity Pacific Basin Fund. |
||
|
# of |
% of |
Affirmative |
201,606,603.82 |
88.553 |
Against |
13,247,269.08 |
5.818 |
Abstain |
12,814,715.64 |
5.629 |
TOTAL |
227,668,588.54 |
100.000 |
PROPOSAL 22 |
||
To amend each fund's fundamental investment limitation concerning underwriting. |
||
|
# of |
% of |
Fidelity Canada Fund |
||
Affirmative |
67,346,052.36 |
90.160 |
Against |
4,216,646.89 |
5.645 |
Abstain |
3,133,778.22 |
4.195 |
TOTAL |
74,696,477.47 |
100.000 |
|
||
|
# of |
% of |
Fidelity China Region Fund |
||
Affirmative |
79,131,557.12 |
90.055 |
Against |
3,800,401.10 |
4.325 |
Abstain |
4,938,685.40 |
5.620 |
TOTAL |
87,870,643.62 |
100.000 |
Fidelity Emerging Markets Fund |
||
Affirmative |
121,909,455.30 |
89.381 |
Against |
7,268,999.08 |
5.330 |
Abstain |
7,214,394.45 |
5.289 |
TOTAL |
136,392,848.83 |
100.000 |
Fidelity Europe Fund |
||
Affirmative |
614,222,055.55 |
88.763 |
Against |
42,606,809.28 |
6.157 |
Abstain |
35,153,856.64 |
5.080 |
TOTAL |
691,982,721.47 |
100.000 |
Fidelity Europe Capital Appreciation Fund |
||
Affirmative |
270,315,137.09 |
91.417 |
Against |
12,335,411.30 |
4.171 |
Abstain |
13,044,601.77 |
4.412 |
TOTAL |
295,695,150.16 |
100.000 |
Fidelity Japan Fund(dagger) |
||
Affirmative |
252,301,107.57 |
89.708 |
Against |
16,182,188.61 |
5.754 |
Abstain |
12,764,348.51 |
4.538 |
TOTAL |
281,247,644.69 |
100.000 |
Fidelity Japan Smaller Companies Fund(dagger) |
||
Affirmative |
222,680,119.01 |
92.457 |
Against |
9,405,222.61 |
3.905 |
Abstain |
8,761,058.55 |
3.638 |
TOTAL |
240,846,400.17 |
100.000 |
Fidelity Latin America Fund |
||
Affirmative |
117,394,566.66 |
89.118 |
Against |
8,446,003.48 |
6.412 |
Abstain |
5,888,382.50 |
4.470 |
TOTAL |
131,728,952.64 |
100.000 |
Fidelity Nordic Fund |
||
Affirmative |
82,898,222.21 |
89.890 |
Against |
4,230,050.59 |
4.586 |
Abstain |
5,093,924.40 |
5.524 |
TOTAL |
92,222,197.20 |
100.000 |
Fidelity Pacific Basin Fund(dagger) |
||
Affirmative |
201,203,682.95 |
88.376 |
Against |
13,354,608.07 |
5.865 |
Abstain |
13,110,297.52 |
5.759 |
TOTAL |
227,668,588.54 |
100.000 |
Fidelity Southeast Asia Fund |
||
Affirmative |
127,844,213.20 |
88.942 |
Against |
9,932,941.94 |
6.910 |
Abstain |
5,961,904.36 |
4.148 |
TOTAL |
143,739,059.50 |
100.000 |
*Denotes trust-wide proposals and voting results.
(dagger)The special shareholder meeting of Fidelity Japan Fund, Fidelity Japan Smaller Companies Fund, and Fidelity Pacific Basin Fund reconvened on March 14, 2001 to vote with respect to these proposals.
Semiannual Report
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
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(phone_graphic)
Fidelity Automated Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
If you are not currently on the Internet, call EarthLink Sprint at 1-800-288-2967, and be sure to ask for registration number SMD004 to receive a special Fidelity package that includes 30 days of free Internet access. EarthLink is North America's #1 independent Internet access provider.
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Fidelity On-line Xpress+ software for Windows combines comprehensive portfolio management capabilities, securities trading and access to research and analysis tools . . . all on your desktop. Call Fidelity at 1-800-544-0240 or visit our Web site for more information on how to manage your investments via your PC.
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Semiannual Report
If more than one address is listed, please locate the address that is closest to you. We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(letter_graphic)
Making Changes
To Your Account
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(letter_graphic)
For Non-Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Overnight Express
Fidelity Investments
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Hebron, KY 41048
Selling shares
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Overnight Express
Fidelity Investments
Attn: Redemptions - CP61
400 East Las Colinas Blvd.
Irving, TX 75039-5587
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(letter_graphic)
For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Overnight Express
Fidelity Investments
Attn: Redemptions - CP6R
400 East Las Colinas Blvd.
Irving, TX 75039-5587
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Semiannual Report
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please call 1-800-544-9797.
Arizona
7373 N. Scottsdale Road
Scottsdale, AZ
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815 East Birch Street
Brea, CA
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Campbell, CA
527 North Brand Boulevard
Glendale, CA
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Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
251 University Avenue
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48 West Putnam Avenue
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222 Delaware Avenue
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4400 N. Federal Highway
Boca Raton, FL
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4090 N. Ocean Boulevard
Ft. Lauderdale, FL
1907 West State Road 434
Longwood, FL
8880 Tamiami Trail, North
Naples, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
1502 N. Westshore Blvd.
Tampa, FL
Georgia
3445 Peachtree Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
Illinois
One North Franklin Street
Chicago, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
3232 Lake Avenue
Wilmette, IL
Indiana
4729 East 82nd Street
Indianapolis, IN
Maine
Three Canal Plaza
Portland, ME
Maryland
7401 Wisconsin Avenue
Bethesda, MD
One W. Pennsylvania Ave.
Towson, MD
Massachusetts
801 Boylston Street
Boston, MA
155 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
416 Belmont Street
Worcester, MA
Michigan
280 Old N. Woodward Ave.
Birmingham, MI
29155 Northwestern Hwy.
Southfield, MI
Minnesota
7600 France Avenue South
Edina, MN
Missouri
700 West 47th Street
Kansas City, MO
8885 Ladue Road
Ladue, MO
New Jersey
150 Essex Street
Millburn, NJ
56 South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
New York
1055 Franklin Avenue
Garden City, NY
999 Walt Whitman Road
Melville, L.I., NY
1271 Avenue of the Americas
New York, NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
North Carolina
4611 Sharon Road
Charlotte, NC
Ohio
600 Vine Street
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
Oregon
16850 SW 72nd Avenue
Tigard, OR
Pennsylvania
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
Rhode Island
47 Providence Place
Providence, RI
Tennessee
6150 Poplar Avenue
Memphis, TN
Texas
10000 Research Boulevard
Austin, TX
4017 Northwest Parkway
Dallas, TX
1155 Dairy Ashford Street
Houston, TX
2701 Drexel Drive
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
19740 IH 45 North
Spring, TX
Utah
215 South State Street
Salt Lake City, UT
Virginia
1861 International Drive
McLean, VA
Washington
411 108th Avenue, N.E.
Bellevue, WA
511 Pine Street
Seattle, WA
Washington, DC
1900 K Street, N.W.
Washington, DC
Wisconsin
595 North Barker Road
Brookfield, WI
Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research (U.K.) Inc.
Fidelity Management & Research (Far East) Inc.
Fidelity Investments Japan Limited
Fidelity International Investment Advisors
Fidelity International Investment Advisors
(U.K.) Limited
Officers
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Richard A. Spillane, Jr., Vice President
Stephen Binder, Jr., Vice President, Canada Fund
William Kennedy, Jr., Vice President, Pacific Basin Fund
Allan Liu, Vice President, Southeast Asia Fund
Patricia Satterthwaite, Vice President, Latin America Fund
and Emerging Markets Fund
Eric D. Roiter, Secretary
Robert A. Dwight, Treasurer
Maria F. Dwyer, Deputy Treasurer
John H. Costello, Assistant Treasurer
Paul F. Maloney, Assistant Treasurer
Thomas J. Simpson, Assistant Treasurer
Board of Trustees
J. Michael Cook *
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Abigail P. Johnson
Edward C. Johnson 3d
Donald J. Kirk *
Marie L. Knowles *
Ned C. Lautenbach *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Robert C. Pozen
William S. Stavropoulos *
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder Servicing Agent
Fidelity Service Company, Inc.
Boston, MA
* Independent trustees
Custodians
The Chase Manhattan Bank
New York, NY
Emerging Markets Fund, Europe Fund, Europe Capital Appreciation Fund, Japan Fund, Pacific Basin Fund, Southeast Asia Fund
Brown Brothers Harriman & Co.
Boston, MA
Canada Fund, China Region Fund, Japan Smaller Companies Fund, Latin America Fund, Nordic Fund
Fidelity's International Equity Funds
Aggressive International Fund
Canada Fund
China Region Fund
Diversified International Fund
Emerging Markets Fund
Europe Fund
Europe Capital Appreciation Fund
Global Balanced Fund
International Growth & Income Fund
Japan Fund
Japan Smaller Companies Fund
Latin America Fund
Nordic Fund
Overseas Fund
Pacific Basin Fund
Southeast Asia Fund
Worldwide Fund
Corporate Headquarters
82 Devonshire Street
Boston, MA 02109
www.fidelity.com
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
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(8 a.m. - 9 p.m.)
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Semiannual Report
TIF-SANN-0601 134869
1.703611.103
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
Printed on Recycled Paper
This ‘N-30D’ Filing | Date | Other Filings | ||
---|---|---|---|---|
10/31/08 | 24F-2NT, N-CSR, NSAR-B | |||
9/30/08 | ||||
10/31/07 | 24F-2NT, N-CSR, NSAR-B | |||
9/30/07 | ||||
10/31/06 | 24F-2NT, N-CSR, NSAR-B | |||
9/30/06 | ||||
10/31/04 | 24F-2NT, N-CSR, NSAR-B | |||
9/30/04 | ||||
10/31/03 | 24F-2NT, N-CSR, NSAR-B | |||
6/30/01 | ||||
Filed on: | 6/28/01 | N-30D | ||
5/30/01 | 497 | |||
For Period End: | 4/30/01 | N-30D, NSAR-A | ||
4/1/01 | ||||
3/14/01 | ||||
2/14/01 | DEFS14A | |||
12/29/00 | 485BPOS, 497, NSAR-B | |||
10/31/00 | 24F-2NT, N-30D, NSAR-B | |||
9/1/00 | ||||
7/28/00 | ||||
7/26/00 | ||||
7/24/00 | ||||
7/19/00 | ||||
3/1/00 | 497 | |||
10/31/96 | 24F-2NT, N-30D, NSAR-B, NSAR-BT | |||
11/1/95 | ||||
12/21/93 | ||||
4/19/93 | ||||
2/19/93 | ||||
9/15/92 | ||||
List all Filings |