UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-3855
Fidelity Advisor Series VIII
(Exact name of registrant as specified in charter)
82 Devonshire St., Boston, Massachusetts 02109
(Address of principal executive offices) (Zip code)
Eric D. Roiter, Secretary
82 Devonshire St.
Boston, Massachusetts 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-563-7000
Date of fiscal year end: | October 31 |
| |
Date of reporting period: | April 30, 2003 |
Item 1. Reports to Stockholders
Fidelity® Advisor
Diversified International
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2003
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
| | |
| | |
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.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.
Neither the fund nor Fidelity Distributors Corporation is a bank.
For more information on any Fidelity Advisor fund, including charges and expenses, contact your investment professional for a free prospectus. Read it carefully before you invest or send money.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
This shareholder update and report on the performance of your fund is among the first to be produced under the new Sarbanes-Oxley Public Company Accounting and Investor Protection Act of 2002. This act requires that public companies certify, under penalty of law, the financial information they report to shareholders. It was adopted by Congress in reaction to several incidents of corporate malfeasance that brought the integrity of management of some publicly traded companies into question.
After the act was signed into law, the Securities and Exchange Commission interpreted it as applying to mutual funds as well as public companies. Thus, every mutual fund now is required to certify that the financial information provided in annual and semiannual reports to shareholders fully and fairly presents its financial position.
There is little doubt that the intent of Congress and regulators in this matter is a noble one - to improve the accuracy and accountability of financial reporting to investors by corporate America. We in no way condone any of the activities that brought about these requirements, and we welcome any and every reasonable proposal to strengthen investor protection and information disclosure.
That said, we are proud that mutual funds have always provided full and fair disclosure. Governed by the Investment Company Act of 1940 - and monitored and regulated by federal and state agencies, industry oversight associations, and independent directors - mutual funds are among the most transparent of all financial products. For example, the prices of mutual fund shares are established and published every business day, and the majority of members of the Board of Trustees that oversees our funds are not affiliated with the business of Fidelity. The disclosure standards of mutual funds actually have become models for governance and transparency across corporate America.
We are, of course, complying in full with the letter of this new requirement and hope that any future efforts by Congress to reassure investors about the honesty of corporate America will focus on practical and substantive solutions of genuine value to shareholders.
This sort of careful consideration was evident as Congress deliberated President Bush's tax cut package this spring, then enacted legislation that contains a variety of benefits for American families, investors and businesses. Although the final bill did not completely eliminate the tax that individual investors pay when they receive dividends from companies, it still will benefit American investors, and we applaud it in the spirit of compromise that marked the debate in Congress.
At Fidelity, we are committed to acting at all times in accordance with the highest standards of integrity and in the best interests of our fund shareholders. We are proud of the amount of information we provide to those who invest in our funds and pleased to continue that level of communication with you in these reports.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Investment Changes
Top Five Stocks as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Novartis AG (Reg.) (Switzerland, Pharmaceuticals) | 2.5 | 1.8 |
Unilever NV (NY Shares) (Netherlands, Food Products) | 2.0 | 2.1 |
GlaxoSmithKline PLC sponsored ADR (United Kingdom, Pharmaceuticals) | 1.6 | 1.0 |
Altadis SA (Spain) (Spain, Tobacco) | 1.4 | 1.2 |
HSBC Holdings PLC (United Kingdom, Banks) | 1.2 | 0.2 |
| 8.7 | |
Top Five Market Sectors as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 22.1 | 21.0 |
Health Care | 14.3 | 14.2 |
Consumer Discretionary | 12.4 | 9.5 |
Consumer Staples | 11.1 | 10.5 |
Information Technology | 9.6 | 8.3 |
Top Five Countries as of April 30, 2003 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United Kingdom | 15.0 | 11.6 |
Japan | 11.3 | 11.1 |
Switzerland | 7.4 | 5.7 |
France | 7.2 | 10.3 |
Netherlands | 6.8 | 7.6 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2003 | As of October 31, 2002 |
 | Stocks and Investment
Companies 94.0% | | | Stocks and Investment
Companies 87.0% | |
 | Bonds 1.0% | | | Bonds 3.0% | |
 | Short-Term
Investments and
Net Other Assets 5.0% | | | Short-Term
Investments and
Net Other Assets 10.0% | |
Semiannual Report
Investments April 30, 2003 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.7% |
| Shares | | Value (Note 1) |
Australia - 2.8% |
Australia & New Zealand Banking Group Ltd. | 237,400 | | $ 2,774,499 |
Australian Gas Light Co. | 199,907 | | 1,431,856 |
Billabong International Ltd. | 75,900 | | 270,632 |
CSL Ltd. | 194,750 | | 1,908,707 |
Fosters Group Ltd. | 364,442 | | 1,023,132 |
Macquarie Bank Ltd. | 79,573 | | 1,250,600 |
National Australia Bank Ltd. | 114,700 | | 2,335,995 |
News Corp. Ltd.: | | | |
ADR | 9,100 | | 257,348 |
sponsored ADR | 23,300 | | 546,618 |
QBE Insurance Group Ltd. | 586,900 | | 3,140,849 |
Suncorp-Metway Ltd. | 162,900 | | 1,160,664 |
Westfield Holdings Ltd. | 180,600 | | 1,652,326 |
TOTAL AUSTRALIA | | 17,753,226 |
Belgium - 0.6% |
Agfa-Gevaert NV | 109,986 | | 2,189,157 |
Groupe Bruxelles Lambert SA (GBL) | 13,937 | | 574,283 |
Melexis NV | 159,750 | | 1,178,974 |
TOTAL BELGIUM | | 3,942,414 |
Bermuda - 0.4% |
Aquarius Platinum Ltd.: | | | |
(Australia) | 373,455 | | 1,216,933 |
(United Kingdom) | 20,000 | | 66,733 |
Clear Media Ltd. (a) | 2,546,100 | | 1,158,928 |
TOTAL BERMUDA | | 2,442,594 |
Brazil - 1.6% |
Aracruz Celulose SA sponsored ADR | 96,300 | | 2,022,300 |
Banco Itau Holding Financeira SA (PN) | 11,303,200 | | 749,405 |
Companhia Brasileira de Distribuicao Grupo Pao de Acucar sponsored ADR | 34,900 | | 506,050 |
Companhia Vale do Rio Doce sponsored ADR | 95,900 | | 2,681,364 |
Petroleo Brasileiro SA Petrobras sponsored ADR | 83,800 | | 1,554,490 |
Uniao de Bancos Brasileiros SA (Unibanco) GDR | 147,500 | | 2,677,125 |
Votorantim Celulose e Papel SA sponsored ADR | 19,400 | | 368,600 |
TOTAL BRAZIL | | 10,559,334 |
Canada - 5.7% |
Alcan, Inc. | 31,900 | | 934,636 |
Barrick Gold Corp. | 44,700 | | 679,465 |
Bombardier, Inc. Class B (sub. vtg.) | 388,700 | | 940,906 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Canada - continued |
Brascan Corp. Class A (ltd. vtg.) | 27,900 | | $ 629,623 |
Canadian Natural Resources Ltd. | 39,200 | | 1,307,122 |
Canadian Western Bank, Edmonton | 13,900 | | 286,048 |
EnCana Corp. | 134,644 | | 4,415,497 |
Hurricane Hydrocarbons Class A (a) | 90,800 | | 994,461 |
ITF Optical Technologies, Inc. Series A (d) | 1,792 | | 2,240 |
Kinross Gold Corp. (a) | 131,833 | | 813,897 |
Loblaw Companies Ltd. | 16,700 | | 652,389 |
Mega Bloks, Inc. | 17,200 | | 275,968 |
Mega Bloks, Inc. (a)(c) | 23,400 | | 375,445 |
Metro, Inc. Class A (sub. vtg.) | 24,000 | | 322,288 |
Molson, Inc. Class A | 42,200 | | 971,468 |
National Bank of Canada | 69,500 | | 1,692,047 |
OZ Optics Ltd. unit (d) | 5,400 | | 79,650 |
Petro-Canada | 156,800 | | 5,170,517 |
Potash Corp. of Saskatchewan | 5,820 | | 358,051 |
Power Corp. of Canada (sub. vtg.) | 69,200 | | 1,943,007 |
Precision Drilling Corp. (a) | 95,200 | | 3,258,782 |
Saputo, Inc. | 58,300 | | 1,026,910 |
Sun Life Financial Services of Canada, Inc. | 107,218 | | 2,202,700 |
Talisman Energy, Inc. | 81,800 | | 3,265,723 |
Teck Cominco Ltd. Class B (sub. vtg.) | 19,000 | | 135,989 |
Tembec, Inc. (a) | 22,900 | | 116,137 |
Thunder Energy, Inc. (a) | 77,800 | | 341,918 |
TimberWest Forest Corp. unit | 172,600 | | 1,476,160 |
TransCanada PipeLines Ltd. | 102,000 | | 1,629,438 |
Trican Well Service Ltd. (a) | 48,500 | | 669,899 |
TOTAL CANADA | | 36,968,381 |
Cayman Islands - 0.2% |
Apex Silver Mines Ltd. (a) | 86,800 | | 1,132,740 |
China - 0.1% |
Byd Co. Ltd. (H Shares) | 299,000 | | 592,315 |
PetroChina Co. Ltd. sponsored ADR | 15,200 | | 353,704 |
TOTAL CHINA | | 946,019 |
Croatia - 0.1% |
Pliva D.D. GDR | 63,700 | | 875,875 |
Denmark - 2.8% |
Coloplast AS Series B | 33,850 | | 2,506,087 |
D/S 1912: | | | |
Series A | 37 | | 325,709 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Denmark - continued |
D/S 1912: - continued | | | |
Series B | 55 | | $ 494,094 |
Danske Bank AS | 168,950 | | 3,254,172 |
Group 4 Falck AS | 126,160 | | 2,202,176 |
Novo Nordisk AS Series B | 181,643 | | 6,587,309 |
Novozymes AS Series B | 110,800 | | 2,709,352 |
TOTAL DENMARK | | 18,078,899 |
Finland - 0.8% |
Nokia Corp. sponsored ADR | 299,500 | | 4,962,715 |
France - 7.2% |
Alcatel SA sponsored ADR | 11,600 | | 93,496 |
AXA SA sponsored ADR | 135,600 | | 2,059,764 |
Bacou Dalloz (a) | 8,807 | | 725,797 |
BNP Paribas SA | 116,400 | | 5,474,466 |
Carbone Lorraine | 21,431 | | 541,590 |
CNP Assurances | 57,393 | | 2,311,650 |
Dassault Aviation SA | 2,208 | | 555,522 |
Elior SA | 126,500 | | 735,552 |
Essilor International SA | 51,178 | | 2,099,667 |
Eurazeo SA | 13,934 | | 711,273 |
Financiere Marc de Lacharriere SA (Fimalac) | 35,029 | | 838,226 |
Financiere Marc de Lacharriere SA (Fimalac) warrants 12/31/06 (a) | 4,632 | | 8,805 |
Ipsos SA | 11,752 | | 604,490 |
L'Air Liquide SA | 15,162 | | 2,300,678 |
L'Oreal SA | 24,950 | | 1,786,937 |
Marionnaud Parfumeries SA (a) | 14,022 | | 380,225 |
Michelin SA (Compagnie Generale des Etablissements)
Series B | 32,452 | | 1,202,941 |
Neopost SA (a) | 98,246 | | 3,405,619 |
NRJ Group | 75,475 | | 1,181,546 |
Pernod-Ricard | 38,837 | | 3,415,575 |
Remy Cointreau SA | 6,771 | | 195,719 |
Schneider Electric SA | 9,184 | | 435,634 |
Suez SA (France) | 38,100 | | 621,584 |
Technip-Coflexip SA | 49,033 | | 4,024,427 |
Television Francaise 1 SA | 91,733 | | 2,581,834 |
TotalFinaElf SA: | | | |
Series B | 13,000 | | 1,708,200 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
France - continued |
TotalFinaElf SA: - continued | | | |
sponsored ADR | 85,800 | | $ 5,637,060 |
Vinci SA | 10,000 | | 652,470 |
TOTAL FRANCE | | 46,290,747 |
Germany - 4.3% |
Adidas-Salomon AG | 3,800 | | 327,610 |
Allianz AG: | | | |
(Reg.) | 22,007 | | 1,558,931 |
sponsored ADR | 77,100 | | 550,494 |
Altana AG | 47,750 | | 2,343,999 |
Amadeus AG | 11,063 | | 54,431 |
Celanese AG (Reg.) | 65,556 | | 1,451,433 |
Deutsche Boerse AG | 84,261 | | 3,957,267 |
Deutsche Telekom AG sponsored ADR | 283,100 | | 3,793,540 |
DIS Deutscher Industrie Service AG | 28,525 | | 446,553 |
Gehe AG | 33,027 | | 1,312,520 |
Infineon Technologies AG sponsored ADR (a) | 204,100 | | 1,553,201 |
Lambda Physik AG (a) | 17,498 | | 177,466 |
Metro AG | 43,000 | | 1,196,776 |
Muenchener Rueckversicherungs-Gesellschaft AG (Reg.) | 12,634 | | 1,264,397 |
Rhoen-Klinikum AG | 4,946 | | 185,276 |
Schering AG sponsored ADR | 31,100 | | 1,386,749 |
Schwarz Pharma AG | 19,900 | | 867,835 |
Stada Arzneimittel AG | 73,753 | | 3,867,871 |
Wella AG | 13,384 | | 1,364,150 |
TOTAL GERMANY | | 27,660,499 |
Greece - 0.6% |
Coca-Cola Hellenic Bottling Co. SA (Bearer) | 69,820 | | 1,022,753 |
Cosmote Mobile Telecommunications SA | 76,100 | | 789,682 |
Hellenic Technodomiki Tev SA | 64,290 | | 402,579 |
Public Power Corp. of Greece | 84,910 | | 1,289,372 |
Technical Olympic SA (Reg.) | 100,100 | | 323,483 |
TOTAL GREECE | | 3,827,869 |
Hong Kong - 1.6% |
Aeon Credit Service (Asia) Co. Ltd. | 634,000 | | 197,130 |
China Mobile (Hong Kong) Ltd. sponsored ADR | 157,300 | | 1,574,573 |
CNOOC Ltd. sponsored ADR | 72,100 | | 1,890,462 |
Esprit Holdings Ltd. | 523,000 | | 1,025,996 |
Hong Kong Exchanges & Clearing Ltd. | 540,000 | | 630,069 |
Li & Fung Ltd. | 796,000 | | 893,046 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Hong Kong - continued |
Techtronic Industries Co. | 1,306,000 | | $ 1,641,051 |
Television Broadcasts Ltd. | 272,000 | | 831,783 |
Yue Yuen Industrial Holdings Ltd. | 683,561 | | 1,402,329 |
TOTAL HONG KONG | | 10,086,439 |
India - 1.5% |
Bajaj Auto Ltd. | 46,300 | | 472,589 |
Dr. Reddy's Laboratories Ltd. | 146,740 | | 2,708,891 |
Infosys Technologies Ltd. | 14,710 | | 867,508 |
Ranbaxy Laboratories Ltd. | 250,580 | | 3,574,419 |
Satyam Computer Services Ltd. | 354,600 | | 1,142,034 |
State Bank of India | 195,600 | | 1,151,403 |
TOTAL INDIA | | 9,916,844 |
Indonesia - 0.1% |
PT Telkomunikasi Indonesia Tbk sponsored ADR | 99,800 | | 924,148 |
Ireland - 2.6% |
Allied Irish Banks PLC | 109,600 | | 1,691,255 |
Bank of Ireland | 372,677 | | 4,604,838 |
CRH PLC | 80,700 | | 1,241,685 |
DCC PLC (Ireland) | 31,450 | | 390,358 |
IAWS Group PLC: | | | |
(Ireland) | 180,500 | | 1,463,304 |
(United Kingdom) (Reg.) | 22,800 | | 183,711 |
Independent News & Media PLC: | | | |
rights 12/31/03 (a) | 109,043 | | 57,308 |
(Ireland) | 419,014 | | 552,879 |
Irish Life & Permanent PLC | 104,600 | | 1,216,423 |
Kerry Group PLC Class A | 107,500 | | 1,592,736 |
Ryanair Holdings PLC sponsored ADR (a) | 93,800 | | 3,721,046 |
TOTAL IRELAND | | 16,715,543 |
Israel - 0.5% |
Check Point Software Technologies Ltd. (a) | 35,200 | | 553,696 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 56,200 | | 2,624,540 |
TOTAL ISRAEL | | 3,178,236 |
Italy - 1.7% |
Banca Intesa Spa | 816,431 | | 2,123,482 |
Banco Popolare di Verona e Novara | 125,713 | | 1,711,467 |
Cassa Di Risparmio Di Firenze | 392,225 | | 499,111 |
Credito Emiliano Spa | 161,930 | | 977,779 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Italy - continued |
Luxottica Group Spa sponsored ADR | 135,800 | | $ 1,522,318 |
Saipem Spa | 77,216 | | 540,075 |
Telecom Italia Spa sponsored ADR | 42,000 | | 3,404,520 |
TOTAL ITALY | | 10,778,752 |
Japan - 11.3% |
Aeon Credit Service Ltd. | 20,500 | | 490,538 |
Asahi National Broadcasting Co. | 138 | | 163,657 |
Canon, Inc. ADR | 170,900 | | 6,854,799 |
Credit Saison Co. Ltd. | 147,600 | | 2,787,014 |
Daito Trust Construction Co. | 69,400 | | 1,327,936 |
Daiwa Securities Group, Inc. | 1,232,000 | | 4,859,818 |
Fuji Photo Film Co. Ltd. | 28,000 | | 715,926 |
Fuji Television Network, Inc. | 102 | | 361,176 |
Hokkaido Coca-Cola Bottling Co. Ltd. | 3,000 | | 13,121 |
Hoya Corp. | 45,000 | | 2,668,321 |
Ito-Yokado Co. Ltd. | 28,000 | | 660,583 |
JAFCO Co. Ltd. | 34,500 | | 1,250,641 |
KDDI Corp. | 76 | | 231,397 |
Keyence Corp. | 9,080 | | 1,464,011 |
Kobayashi Pharmaceutical Co. Ltd. | 4,600 | | 159,401 |
Konica Corp. | 183,000 | | 1,679,238 |
Kyocera Corp. | 42,600 | | 2,085,302 |
Kyocera Corp. sponsored ADR | 10,200 | | 501,738 |
Minolta Co. Ltd. (a) | 170,000 | | 943,690 |
Mitsui O.S.K Lines Ltd. | 78,000 | | 204,685 |
Murata Manufacturing Co. Ltd. | 37,700 | | 1,347,618 |
Nikko Cordial Corp. | 2,022,000 | | 5,442,113 |
Nikon Corp. (a) | 122,000 | | 815,762 |
Nintendo Co. Ltd. | 7,800 | | 611,430 |
Nissan Motor Co. Ltd. | 575,600 | | 4,411,974 |
Nomura Holdings, Inc. | 708,000 | | 7,032,659 |
Olympus Optical Co. Ltd. | 60,000 | | 1,042,096 |
ORIX Corp. | 62,700 | | 2,874,091 |
Rohm Co. Ltd. | 28,000 | | 2,894,319 |
Shin-Etsu Chemical Co. Ltd. | 113,400 | | 3,405,005 |
Sompo Japan Insurance, Inc. | 86,000 | | 394,213 |
Sony Corp. sponsored ADR | 29,300 | | 724,882 |
Stanley Electric Co. Ltd. | 67,000 | | 845,284 |
Sumisho Lease Co. Ltd. | 8,000 | | 111,830 |
Takeda Chemical Industries Ltd. | 79,300 | | 2,914,681 |
Tanabe Seiyaku Co. Ltd. | 28,000 | | 184,633 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Japan - continued |
Terumo Corp. | 80,400 | | $ 1,340,958 |
Tokyo Electron Ltd. | 68,600 | | 2,579,099 |
Toyota Industries Corp. | 50,500 | | 749,674 |
Toyota Motor Corp. ADR | 70,600 | | 3,196,768 |
Yamada Denki Co. Ltd. | 23,800 | | 460,406 |
TOTAL JAPAN | | 72,802,487 |
Korea (South) - 1.3% |
Amorepacific Corp. | 9,000 | | 796,624 |
Cheil Industries, Inc. | 23,200 | | 293,224 |
KT Corp. sponsored ADR | 94,500 | | 1,912,680 |
KT&G Corp. | 15,450 | | 236,616 |
LG Electronics, Inc. | 19,320 | | 666,536 |
Samsung Electro-Mechanics Co. Ltd. | 3,800 | | 112,170 |
Samsung Electronics Co. Ltd. | 17,330 | | 4,352,120 |
TOTAL KOREA (SOUTH) | | 8,369,970 |
Luxembourg - 0.2% |
Espirito Santo Financial Holding SA ADR | 81,540 | | 1,432,658 |
Mexico - 1.4% |
Coca-Cola Femsa SA de CV sponsored ADR | 107,100 | | 2,275,875 |
Fomento Economico Mexicano SA de CV sponsored ADR | 24,200 | | 918,632 |
Grupo Radio Centro SA de CV sponsored ADR (a) | 86,400 | | 318,816 |
Grupo Televisa SA de CV sponsored ADR (a) | 8,800 | | 266,992 |
Telefonos de Mexico SA de CV sponsored ADR | 113,800 | | 3,437,898 |
TV Azteca SA de CV sponsored ADR | 301,000 | | 1,745,800 |
TOTAL MEXICO | | 8,964,013 |
Netherlands - 6.5% |
ASM International NV (Nasdaq) (a) | 26,100 | | 355,743 |
ASML Holding NV (NY Shares) (a) | 388,800 | | 3,425,328 |
Euronext NV | 159,347 | | 3,528,000 |
Fugro NV (Certificaten Van Aandelen) | 36,300 | | 1,475,470 |
Heineken Holding NV (A Shares) | 51,725 | | 1,503,233 |
Hunter Douglas NV | 9,680 | | 283,593 |
ING Groep NV (Certificaten Van Aandelen) | 213,641 | | 3,475,898 |
Koninklijke Philips Electronics NV (NY Shares) | 118,200 | | 2,207,976 |
OPG Groep NV | 34,600 | | 1,083,312 |
Royal Dutch Petroleum Co. (NY Shares) | 110,900 | | 4,533,592 |
Unilever NV (NY Shares) | 205,900 | | 12,965,523 |
Van der Moolen Holding NV sponsored ADR | 55,900 | | 592,540 |
Vedior NV (Certificaten Van Aandelen) | 197,792 | | 1,307,121 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Netherlands - continued |
VNU NV | 112,149 | | $ 3,260,530 |
Wolters Kluwer NV (Certificaten Van Aandelen) | 165,200 | | 2,155,760 |
TOTAL NETHERLANDS | | 42,153,619 |
Netherlands Antilles - 0.4% |
Schlumberger Ltd. (NY Shares) | 68,400 | | 2,868,012 |
Norway - 1.0% |
DnB Holding ASA | 526,900 | | 2,515,180 |
Gjensidige NOR ASA | 47,700 | | 1,653,196 |
ProSafe ASA (a) | 32,550 | | 548,943 |
Schibsted AS (B Shares) | 72,800 | | 842,773 |
Storebrand ASA (A Shares) (a) | 212,100 | | 863,933 |
TOTAL NORWAY | | 6,424,025 |
Panama - 0.1% |
Banco Latin Americano de Exporaciones SA (BLADEX)
Series E (a) | 59,260 | | 512,599 |
Russia - 1.5% |
JSC MMC 'Norilsk Nickel' sponsored ADR | 51,900 | | 1,180,725 |
Lukoil Oil Co. sponsored ADR | 19,700 | | 1,363,240 |
Mobile TeleSystems OJSC sponsored ADR (a) | 15,500 | | 744,000 |
OAO Gazprom sponsored ADR | 22,800 | | 359,100 |
Sibneft sponsored ADR (a) | 45,700 | | 1,065,267 |
YUKOS Corp. sponsored ADR | 27,100 | | 4,742,500 |
TOTAL RUSSIA | | 9,454,832 |
Singapore - 1.0% |
DBS Group Holdings Ltd. | 158,500 | | 777,750 |
Flextronics International Ltd. (a) | 441,300 | | 3,861,375 |
Fraser & Neave Ltd. | 68,800 | | 310,434 |
Singapore Exchange Ltd. | 933,000 | | 641,997 |
Want Want Holdings Ltd. | 1,061,000 | | 700,260 |
TOTAL SINGAPORE | | 6,291,816 |
South Africa - 1.0% |
Anglo American Platinum Corp. Ltd. | 16,600 | | 464,361 |
Gold Fields Ltd. sponsored ADR | 66,600 | | 675,990 |
Harmony Gold Mining Co. Ltd. | 75,800 | | 800,346 |
Harmony Gold Mining Co. Ltd. sponsored ADR | 136,700 | | 1,435,350 |
Sappi Ltd. | 255,800 | | 3,153,391 |
TOTAL SOUTH AFRICA | | 6,529,438 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Spain - 4.0% |
Actividades de Construccion y Servicios SA (ACS) | 26,300 | | $ 992,542 |
Altadis SA (Spain) | 354,360 | | 9,153,268 |
Banco Bilbao Vizcaya Argentaria SA sponsored ADR | 119,900 | | 1,216,985 |
Banco Popular Espanol SA (Reg.) | 59,176 | | 2,874,451 |
Banco Santander Central Hispano SA ADR | 564,200 | | 4,434,612 |
Compania de Distribucion Integral Logista SA | 39,528 | | 884,004 |
Fomento Construcciones y Contratas SA (FOCSA) | 85,668 | | 2,197,513 |
Grupo Ferrovial SA | 58,071 | | 1,544,154 |
Inditex SA | 130,056 | | 2,597,355 |
Telefonica SA sponsored ADR | 851 | | 28,296 |
TOTAL SPAIN | | 25,923,180 |
Sweden - 2.0% |
Eniro AB | 172,300 | | 1,320,574 |
Getinge AB (B Shares) | 63,000 | | 1,429,255 |
Hennes & Mauritz AB (H&M) (B Shares) | 116,200 | | 2,593,432 |
Nordea AB | 229,100 | | 1,219,304 |
Securitas AB (B Shares) | 111,800 | | 1,316,165 |
Svenska Cellulosa AB (SCA) (B Shares) | 74,250 | | 2,522,165 |
Swedish Match Co. | 309,100 | | 2,293,252 |
TV 4 AB (A Shares) | 6,600 | | 82,555 |
TOTAL SWEDEN | | 12,776,702 |
Switzerland - 7.4% |
Actelion Ltd. (Reg.) (a) | 15,986 | | 1,025,092 |
Alcon, Inc. | 54,100 | | 2,383,105 |
Centerpulse AG sponsored ADR | 159,000 | | 3,526,620 |
Converium Holding AG | 58,328 | | 2,637,766 |
Credit Suisse Group sponsored ADR | 160,300 | | 3,831,170 |
INFICON Holding AG (a) | 10,631 | | 627,154 |
Nestle SA (Reg.) | 21,360 | | 4,360,632 |
Nobel Biocare Holding AG (Switzerland) | 61,223 | | 3,390,228 |
Novartis AG (Reg.) | 406,962 | | 16,075,360 |
Roche Holding AG (participation certificate) | 29,464 | | 1,877,395 |
Schindler Holding AG (Reg'd.) | 9,961 | | 1,779,801 |
SIG Holding AG | 8,754 | | 906,489 |
Swiss Reinsurance Co. (Reg.) | 21,200 | | 1,386,828 |
Tecan Group AG | 17,646 | | 464,471 |
The Swatch Group AG (Reg.) | 126,746 | | 2,175,756 |
UBS AG (NY Shares) | 19,247 | | 913,270 |
Unilabs SA | 21,650 | | 314,903 |
TOTAL SWITZERLAND | | 47,676,040 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Taiwan - 1.0% |
Chinatrust Financial Holding Co. (a) | 2,436,000 | | $ 1,901,268 |
Fubon Financial Holding Co. Ltd. | 1,131,787 | | 772,928 |
Taiwan Semiconductor Manufacturing Co. Ltd. (a) | 1,516,556 | | 2,080,097 |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR (a) | 198,000 | | 1,657,260 |
Yuanta Core Pacific Securities Co. Ltd. | 681,355 | | 293,266 |
TOTAL TAIWAN | | 6,704,819 |
Thailand - 0.0% |
BEC World PCL (For. Reg.) | 8,900 | | 42,851 |
United Kingdom - 15.0% |
Amdocs Ltd. (a) | 74,200 | | 1,310,372 |
Amvescap PLC | 263,200 | | 1,432,076 |
Anglo American PLC: | | | |
ADR | 14,905 | | 212,694 |
(United Kingdom) | 35,400 | | 507,590 |
ARM Holdings PLC sponsored ADR (a) | 370,200 | | 1,140,216 |
AstraZeneca PLC sponsored ADR | 72,900 | | 2,906,523 |
BBA Group PLC | 329,400 | | 1,023,967 |
BOC Group PLC | 143,327 | | 1,809,699 |
BP PLC sponsored ADR | 81,900 | | 3,156,426 |
British American Tobacco PLC | 38,900 | | 373,510 |
British American Tobacco PLC sponsored ADR | 90,700 | | 1,740,533 |
British Sky Broadcasting Group PLC (BSkyB) sponsored ADR (a) | 9,600 | | 404,160 |
Capital Radio PLC | 101,292 | | 745,649 |
Celltech Group PLC (a) | 140,012 | | 572,476 |
Centrica PLC | 981,900 | | 2,612,344 |
Danka Business Systems PLC sponsored ADR (a) | 175,400 | | 682,306 |
Diageo PLC | 184,600 | | 2,050,183 |
Enterprise Inns PLC | 67,387 | | 672,918 |
Gallaher Group PLC sponsored ADR | 61,500 | | 2,329,620 |
GlaxoSmithKline PLC sponsored ADR | 254,280 | | 10,303,426 |
GWR Group PLC | 82,300 | | 216,654 |
HBOS PLC | 178,484 | | 2,093,653 |
HSBC Holdings PLC: | | | |
(United Kingdom) (Reg.) | 3,300 | | 36,095 |
sponsored ADR | 146,300 | | 8,001,147 |
Inchcape PLC | 88,460 | | 1,034,822 |
Informa Group PLC | 65,600 | | 200,511 |
Intertek Testing Services PLC | 133,300 | | 773,285 |
Johnson Service Group PLC | 154,133 | | 720,244 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
United Kingdom - continued |
Johnston Press PLC | 165,270 | | $ 993,128 |
Kingfisher PLC | 847,186 | | 3,314,813 |
London Stock Exchange PLC | 189,123 | | 983,624 |
Maiden Group PLC | 140,000 | | 444,723 |
Next PLC | 185,000 | | 2,793,284 |
Northern Rock PLC | 274,300 | | 3,140,775 |
Pearson PLC sponsored ADR | 119,000 | | 1,010,310 |
PHS Group PLC | 677,708 | | 715,794 |
Premier Oil PLC (a) | 232,400 | | 103,205 |
Professional Staff PLC sponsored ADR (a) | 30,400 | | 60,800 |
Prudential PLC | 527,400 | | 3,232,513 |
Punch Taverns Ltd. | 191,600 | | 653,862 |
Reckitt Benckiser PLC | 289,100 | | 5,105,307 |
Rentokil Initial PLC | 368,900 | | 1,103,956 |
Rio Tinto PLC (Reg.) | 119,000 | | 2,277,611 |
SMG PLC | 516,057 | | 648,289 |
Smith & Nephew PLC | 337,900 | | 2,256,243 |
Standard Chartered PLC | 48,200 | | 538,399 |
Taylor Nelson Sofres PLC | 620,820 | | 1,326,320 |
Tesco PLC | 1,784,200 | | 5,653,405 |
Trinity Mirror PLC | 290,842 | | 2,029,294 |
Ultraframe PLC | 64,587 | | 244,443 |
United Business Media PLC | 169,209 | | 676,963 |
Vodafone Group PLC sponsored ADR | 309,400 | | 6,113,744 |
William Hill PLC | 115,500 | | 431,589 |
WPP Group PLC | 75,900 | | 540,813 |
Xstrata PLC | 162,400 | | 1,446,281 |
TOTAL UNITED KINGDOM | | 96,902,587 |
United States of America - 3.4% |
Avon Products, Inc. | 10,000 | | 581,700 |
Baxter International, Inc. | 42,100 | | 968,300 |
Coherent, Inc. (a) | 7,600 | | 174,800 |
Forest Laboratories, Inc. (a) | 36,300 | | 1,877,436 |
Fox Entertainment Group, Inc. Class A (a) | 41,600 | | 1,056,640 |
Freeport-McMoRan Copper & Gold, Inc. Class B | 93,800 | | 1,623,678 |
Mettler-Toledo International, Inc. (a) | 82,200 | | 2,918,100 |
Motorola, Inc. | 383,000 | | 3,029,530 |
Newmont Mining Corp. Holding Co. | 53,420 | | 1,443,408 |
NTL, Inc. (a) | 60,500 | | 1,028,500 |
Orthofix International NV (a) | 60,800 | | 1,711,520 |
Phelps Dodge Corp. (a) | 27,900 | | 870,201 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
United States of America - continued |
Synthes-Stratec, Inc. | 4,098 | | $ 2,586,968 |
Transocean, Inc. | 107,200 | | 2,042,160 |
TOTAL UNITED STATES OF AMERICA | | 21,912,941 |
TOTAL COMMON STOCKS (Cost $594,436,076) | 604,783,863 |
Preferred Stocks - 0.0% |
| | | |
Convertible Preferred Stocks - 0.0% |
Canada - 0.0% |
Metrophotonics, Inc. Series 2 (d) | 8,500 | | 85,000 |
Nonconvertible Preferred Stocks - 0.0% |
Italy - 0.0% |
Telecom Italia Spa Risp (non-vtg.) | 52,100 | | 255,870 |
TOTAL PREFERRED STOCKS (Cost $322,415) | 340,870 |
Investment Companies - 0.3% |
| | | |
China - 0.1% |
China Fund, Inc. | 19,100 | | 304,645 |
Templeton China World Fund, Inc. | 30,000 | | 333,300 |
TOTAL CHINA | | 637,945 |
India - 0.1% |
India Fund | 42,650 | | 410,720 |
Multi-National - 0.1% |
Templeton Dragon Fund, Inc. | 94,600 | | 847,616 |
TOTAL INVESTMENT COMPANIES (Cost $1,907,897) | 1,896,281 |
Corporate Bonds - 0.5% |
| Principal Amount | | Value
(Note 1) |
Convertible Bonds - 0.2% |
Netherlands - 0.2% |
Koninklijke Ahold NV: | | | | |
3% 9/30/03 | NLG | 2,040,000 | | $ 931,573 |
4% 5/19/05 | EUR | 530,000 | | 461,688 |
TOTAL NETHERLANDS | | 1,393,261 |
Nonconvertible Bonds - 0.3% |
Netherlands - 0.1% |
Koninklijke Ahold NV 5.875% 5/9/08 | EUR | 750,000 | | 664,160 |
United States of America - 0.2% |
Ahold Finance USA, Inc.: | | | | |
6.5% 3/14/17 | GBP | 500,000 | | 582,776 |
euro 6.375% 6/8/05 | EUR | 700,000 | | 686,856 |
TOTAL UNITED STATES OF AMERICA | | 1,269,632 |
TOTAL NONCONVERTIBLE BONDS | | 1,933,792 |
TOTAL CORPORATE BONDS (Cost $3,054,225) | 3,327,053 |
Government Obligations - 0.5% |
|
United States of America - 0.5% |
Freddie Mac 5.25% 1/15/06
(Cost $2,595,956) | EUR | 2,805,000 | | 3,331,991 |
Money Market Funds - 8.7% |
| Shares | | Value (Note 1) |
Fidelity Cash Central Fund, 1.29% (b)
(Cost $55,960,971) | 55,960,971 | | $ 55,960,971 |
TOTAL INVESTMENT PORTFOLIO - 103.7% (Cost $658,277,540) | | 669,641,029 |
NET OTHER ASSETS - (3.7)% | | (24,014,158) |
NET ASSETS - 100% | $ 645,626,871 |
Currency Abbreviations |
EUR | - | European Monetary Unit |
GBP | - | British pound |
NLG | - | Dutch guilder |
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 $375,445 or 0.1% of net assets. |
(d) Restricted securities - Investment in securities not registered under the Securities Act of 1933. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
ITF Optical Technologies, Inc. Series A | 10/11/00 | $ 89,985 |
Metrophotonics, Inc. Series 2 | 9/29/00 | $ 85,000 |
OZ Optics Ltd. unit | 8/18/00 | $ 79,704 |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $321,663,892 and $134,223,309, respectively, of which long-term U.S. government and government agency obligations aggregated $0 and $2,998,133, respectively. |
The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $8,927 for the period. |
The fund invested in securities that are not registered under the Securities Act of 1933. At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $166,890 or 0% of net assets. |
Income Tax Information |
At October 31, 2002, the fund had a capital loss carryforward of approximately $73,897,000 of which $6,956,000, $34,999,000 and $31,942,000 will expire on October 31, 2008, 2009 and 2010, respectively. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| April 30, 2003 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $24,688,447) (cost $658,277,540) - See accompanying schedule | | $ 669,641,029 |
Cash | | 50,102 |
Foreign currency held at value (cost $1,827,174) | | 1,820,315 |
Receivable for investments sold | | 1,929,689 |
Receivable for fund shares sold | | 1,688,745 |
Dividends receivable | | 3,153,712 |
Interest receivable | | 264,486 |
Other receivables | | 44,385 |
Total assets | | 678,592,463 |
| | |
Liabilities | | |
Payable for investments purchased | $ 4,288,464 | |
Payable for fund shares redeemed | 2,125,168 | |
Accrued management fee | 374,273 | |
Distribution fees payable | 239,498 | |
Other payables and accrued expenses | 222,200 | |
Collateral on securities loaned, at value | 25,715,989 | |
Total liabilities | | 32,965,592 |
| | |
Net Assets | | $ 645,626,871 |
Net Assets consist of: | | |
Paid in capital | | $ 724,368,648 |
Undistributed net investment income | | 1,473,488 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (91,650,075) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 11,434,810 |
Net Assets | | $ 645,626,871 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| April 30, 2003 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share
($77,928,662 ÷ 6,757,279 shares) | | $ 11.53 |
| | |
Maximum offering price per share (100/94.25 of $11.53) | | $ 12.23 |
Class T:
Net Asset Value and redemption price per share ($318,509,585 ÷ 27,827,762 shares) | | $ 11.45 |
| | |
Maximum offering price per share (100/96.50 of $11.45) | | $ 11.87 |
Class B:
Net Asset Value and offering price per share ($57,631,272 ÷ 5,119,149 shares) A | | $ 11.26 |
| | |
Class C:
Net Asset Value and offering price per share ($67,089,240 ÷ 5,948,917 shares) A | | $ 11.28 |
| | |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($124,468,112 ÷ 10,703,231 shares) | | $ 11.63 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
Semiannual Report
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Six months ended April 30, 2003 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 6,343,223 |
Interest | | 705,673 |
Security lending | | 144,779 |
| | 7,193,675 |
Less foreign taxes withheld | | (725,972) |
Total income | | 6,467,703 |
| | |
Expenses | | |
Management fee | $ 1,963,614 | |
Transfer agent fees | 928,763 | |
Distribution fees | 1,290,007 | |
Accounting and security lending fees | 163,025 | |
Non-interested trustees' compensation | 1,030 | |
Custodian fees and expenses | 245,819 | |
Registration fees | 99,385 | |
Audit | 27,696 | |
Legal | 14,727 | |
Miscellaneous | 1,432 | |
Total expenses before reductions | 4,735,498 | |
Expense reductions | (74,935) | 4,660,563 |
Net investment income (loss) | | 1,807,140 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities | (14,647,111) | |
Foreign currency transactions | 19,447 | |
Total net realized gain (loss) | | (14,627,664) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 37,890,219 | |
Assets and liabilities in foreign currencies | 20,893 | |
Total change in net unrealized appreciation (depreciation) | | 37,911,112 |
Net gain (loss) | | 23,283,448 |
Net increase (decrease) in net assets resulting from operations | | $ 25,090,588 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended
April 30, 2003
(Unaudited) | Year ended
October 31,
2002 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 1,807,140 | $ 1,012,991 |
Net realized gain (loss) | (14,627,664) | (33,235,740) |
Change in net unrealized appreciation (depreciation) | 37,911,112 | (2,842,129) |
Net increase (decrease) in net assets resulting
from operations | 25,090,588 | (35,064,878) |
Distributions to shareholders from net investment income | (1,439,389) | - |
Share transactions - net increase (decrease) | 175,448,633 | 160,808,418 |
Total increase (decrease) in net assets | 199,099,832 | 125,743,540 |
| | |
Net Assets | | |
Beginning of period | 446,527,039 | 320,783,499 |
End of period (including undistributed net investment income of $1,473,488 and undistributed net investment income of $1,105,737, respectively) | $ 645,626,871 | $ 446,527,039 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 G |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.12 | $ 11.87 | $ 14.54 | $ 13.05 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .05 | .07 | .10 | .22 F | .01 |
Net realized and unrealized gain (loss) | .42 | (.82) | (2.48) | 1.49 | 3.04 |
Total from investment operations | .47 | (.75) | (2.38) | 1.71 | 3.05 |
Distributions from net investment income | (.06) | - | (.29) | (.03) | - |
Distributions from net realized gain | - | - | - | (.17) | - |
Distributions in excess of net realized gain | - | - | - | (.02) | - |
Total distributions | (.06) | - | (.29) | (.22) | - |
Net asset value, end of period | $ 11.53 | $ 11.12 | $ 11.87 | $ 14.54 | $ 13.05 |
Total Return B, C, D | 4.24% | (6.32)% | (16.69)% | 13.13% | 30.50% |
Ratios to Average Net Assets H | | | | |
Expenses before expense reductions | 1.51% A | 1.46% | 1.50% | 1.52% | 2.60% A |
Expenses net of voluntary waivers, if any | 1.51% A | 1.46% | 1.50% | 1.52% | 2.00% A |
Expenses net of all reductions | 1.48% A | 1.43% | 1.46% | 1.50% | 1.97% A |
Net investment income (loss) | .94% A | .54% | .77% | 1.44% | .05% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 77,929 | $ 51,616 | $ 38,016 | $ 27,314 | $ 3,841 |
Portfolio turnover rate | 54% A | 53% | 84% | 87% | 78% A |
Annualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FInvestment income per share reflects a special dividend which amounted to $.13 per share. GFor the period December 17, 1998 (commencement of operations) to October 31, 1999. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 G |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.01 | $ 11.80 | $ 14.46 | $ 13.02 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .03 | .02 | .06 | .17 F | (.02) |
Net realized and unrealized gain (loss) | .43 | (.81) | (2.46) | 1.49 | 3.04 |
Total from investment operations | .46 | (.79) | (2.40) | 1.66 | 3.02 |
Distributions from net investment income | (.02) | - | (.26) | (.03) | - |
Distributions from net realized gain | - | - | - | (.17) | - |
Distributions in excess of net realized gain | - | - | - | (.02) | - |
Total distributions | (.02) | - | (.26) | (.22) | - |
Net asset value, end of period | $ 11.45 | $ 11.01 | $ 11.80 | $ 14.46 | $ 13.02 |
Total Return B, C, D | 4.18% | (6.69)% | (16.90)% | 12.78% | 30.20% |
Ratios to Average Net Assets H | | | | |
Expenses before expense reductions | 1.84% A | 1.79% | 1.81% | 1.82% | 2.84% A |
Expenses net of voluntary waivers, if any | 1.84% A | 1.79% | 1.81% | 1.82% | 2.25% A |
Expenses net of all reductions | 1.81% A | 1.76% | 1.76% | 1.80% | 2.22% A |
Net investment income (loss) | .61% A | .21% | .47% | 1.15% | (.20)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 318,510 | $ 204,408 | $ 153,128 | $ 139,347 | $ 32,132 |
Portfolio turnover rate | 54% A | 53% | 84% | 87% | 78% A |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FInvestment income per share reflects a special dividend which amounted to $.13 per share. GFor the period December 17, 1998 (commencement of operations) to October 31, 1999. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 G |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.84 | $ 11.68 | $ 14.33 | $ 12.96 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | -I | (.04) | (.01) | .09 F | (.07) |
Net realized and unrealized gain (loss) | .42 | (.80) | (2.44) | 1.49 | 3.03 |
Total from investment operations | .42 | (.84) | (2.45) | 1.58 | 2.96 |
Distributions from net investment income | - | - | (.20) | (.02) | - |
Distributions from net realized gain | - | - | - | (.17) | - |
Distributions in excess of net realized gain | - | - | - | (.02) | - |
Total distributions | - | - | (.20) | (.21) | - |
Net asset value, end of period | $ 11.26 | $ 10.84 | $ 11.68 | $ 14.33 | $ 12.96 |
Total Return B, C, D | 3.87% | (7.19)% | (17.33)% | 12.21% | 29.60% |
Ratios to Average Net Assets H | | | | |
Expenses before expense reductions | 2.39% A | 2.32% | 2.35% | 2.36% | 3.38% A |
Expenses net of voluntary waivers, if any | 2.39% A | 2.32% | 2.35% | 2.36% | 2.75% A |
Expenses net of all reductions | 2.36% A | 2.29% | 2.30% | 2.34% | 2.72% A |
Net investment income (loss) | .06% A | (.32)% | (.07)% | .60% | (.70)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 57,631 | $ 48,693 | $ 42,110 | $ 43,758 | $ 10,839 |
Portfolio turnover rate | 54% A | 53% | 84% | 87% | 78% A |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FInvestment income per share reflects a special dividend which amounted to $.13 per share. GFor the period December 17, 1998 (commencement of operations) to October 31, 1999. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 G |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.86 | $ 11.68 | $ 14.34 | $ 12.96 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .01 | (.03) | - I | .10 F | (.07) |
Net realized and unrealized gain (loss) | .41 | (.79) | (2.45) | 1.48 | 3.03 |
Total from investment operations | .42 | (.82) | (2.45) | 1.58 | 2.96 |
Distributions from net investment income | - | - | (.21) | (.01) | - |
Distributions from net realized gain | - | - | - | (.17) | - |
Distributions in excess of net realized gain | - | - | - | (.02) | - |
Total distributions | - | - | (.21) | (.20) | - |
Net asset value, end of period | $ 11.28 | $ 10.86 | $ 11.68 | $ 14.34 | $ 12.96 |
Total Return B, C, D | 3.87% | (7.02)% | (17.33)% | 12.21% | 29.60% |
Ratios to Average Net Assets H | | | | |
Expenses before expense reductions | 2.30% A | 2.25% | 2.28% | 2.32% | 3.36% A |
Expenses net of voluntary waivers, if any | 2.30% A | 2.25% | 2.28% | 2.32% | 2.75% A |
Expenses net of all reductions | 2.27% A | 2.22% | 2.24% | 2.30% | 2.72% A |
Net investment income (loss) | .15% A | (.25)% | (.01)% | .65% | (.70)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 67,089 | $ 53,883 | $ 44,206 | $ 37,765 | $ 8,142 |
Portfolio turnover rate | 54% A | 53% | 84% | 87% | 78% A |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FInvestment income per share reflects a special dividend which amounted to $.13 per share. GFor the period December 17, 1998 (commencement of operations) to October 31, 1999. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.22 | $ 11.94 | $ 14.60 | $ 13.08 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) D | .07 | .11 | .14 | .26 E | .03 |
Net realized and unrealized gain (loss) | .43 | (.83) | (2.48) | 1.49 | 3.05 |
Total from investment operations | .50 | (.72) | (2.34) | 1.75 | 3.08 |
Distributions from net investment income | (.09) | - | (.32) | (.04) | - |
Distributions from net realized gain | - | - | - | (.17) | - |
Distributions in excess of net realized gain | - | - | - | (.02) | - |
Total distributions | (.09) | - | (.32) | (.23) | - |
Net asset value, end of period | $ 11.63 | $ 11.22 | $ 11.94 | $ 14.60 | $ 13.08 |
Total Return B, C | 4.48% | (6.03)% | (16.38)% | 13.42% | 30.80% |
Ratios to Average Net Assets G | | | | |
Expenses before expense reductions | 1.14% A | 1.11% | 1.17% | 1.24% | 2.34% A |
Expenses net of voluntary waivers, if any | 1.14% A | 1.11% | 1.17% | 1.24% | 1.75% A |
Expenses net of all reductions | 1.11% A | 1.07% | 1.12% | 1.22% | 1.72% A |
Net investment income (loss) | 1.31% A | .89% | 1.11% | 1.73% | .30% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 124,468 | $ 87,927 | $ 43,323 | $ 20,300 | $ 4,182 |
Portfolio turnover rate | 54% A | 53% | 84% | 87% | 78% A |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DCalculated based on average shares outstanding during the period. EInvestment income per share reflects a special dividend which amounted to $.13 per share. FFor the period December 17, 1998 (commencement of operations) to October 31, 1999. GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2003 (Unaudited)
1. Significant Accounting Policies.
Fidelity Advisor Diversified International Fund (the fund) is a fund of Fidelity Advisor Series VIII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
The fund offers Class A, Class T, Class B, Class C and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
The fund's 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 fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. Debt securities for which quotations are readily available are valued at their most recent bid prices (sales prices if the principal market is an exchange) in the principal market in which such securities are normally traded, as determined by recognized dealers in such securities, or securities are valued on the basis of information provided by a pricing service. Pricing services use valuation matrices that incorporate both dealer-supplied valuations and electronic data processing techniques. If an event that is expected to materially affect the value of a security occurs after the close of an exchange or market on which that security trades, but prior to the NAV calculation, then that security will be fair valued taking the event into account. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
1. Significant Accounting Policies - continued
Security Valuation - continued
securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. 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 fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, which includes amortization of premium and accretion of discount on debt securities, as required, 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.
Income Tax Information and Distributions to Shareholders. Each year the fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. Foreign taxes are provided for based on each fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Income dividends and capital gain distributions are declared separately for each class. Distributions are recorded on the ex-dividend date.
Semiannual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Capital accounts within the financial statements are adjusted for permanent and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), prior period premium and discount on debt securities, non-taxable dividends, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investments including unrealized appreciation (depreciation) as of period end was as follows:
Unrealized appreciation | $ 62,998,574 | | |
Unrealized depreciation | (54,538,415) | |
Net unrealized appreciation (depreciation) | $ 8,460,159 | |
Cost for federal income tax purposes | $ 661,180,870 | |
2. Operating Policies.
Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. The custodian bank receives the collateral, which is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
Restricted Securities. The fund may 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 captions "Legend" and/or "Other Information" at the end of the fund's Schedule of Investments.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Purchases and Sales of Investments.
Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee.
The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the fund's average net assets and a group fee rate that averaged .28% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .73% of the fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. Class A and Class T Plans also authorize the use of brokerage commissions to pay distribution expenses. In addition, FDC may pay financial intermediaries for selling shares of the fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, the total amounts paid to and retained by FDC and the amount of distribution expenses paid with brokerage commissions were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC | Paid with
Commissions |
Class A | .01% | .25% | $ 77,929 | $ 462 | $ 1,532 |
Class T | .25% | .25% | 651,288 | 11,096 | 6,430 |
Class B | .75% | .25% | 260,137 | 195,534 | - |
Class C | .75% | .25% | 300,653 | 78,050 | - |
| | | $ 1,290,007 | $ 285,142 | $ 7,962 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares of the fund. FDC receives the proceeds of contingent deferred sales charge (CDSC) levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, and .25% for certain purchases of Class A and Class T shares.
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC | |
Class A | $ 45,116 | |
Class T | 20,270 | |
Class B* | 80,565 | |
Class C* | 15,001 | |
| $ 160,952 | |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent (collectively referred to as the transfer agent) for each class of the fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the fund. FIIOC pays for typesetting, printing and mailing of all shareholder reports, except proxy statements. For the period, the following amounts were paid to FIIOC:
| Amount | % of
Average
Net Assets |
Class A | $ 95,849 | .31* |
Class T | 505,791 | .39* |
Class B | 116,947 | .45* |
Class C | 108,371 | .36* |
Institutional Class | 101,805 | .20* |
| $ 928,763 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Fees and Other Transactions with Affiliates - continued
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $351,012 for the period.
Brokerage Commissions. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms are shown under the caption "Other Information" at the end of the fund's Schedule of Investments.
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $3.5 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 fund has agreed to pay commitment fees on its pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.
6. Security Lending.
The fund lends portfolio securities from time to time in order to earn additional income. The 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 fund and any additional required collateral is delivered to the fund 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 the fund's Statement of Assets and Liabilities.
Semiannual Report
7. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services may include payments of expenses on behalf of the fund to support distribution of fund shares for Class A and Class T ("Distribution Expense Reduction") and to pay other fund expenses, such as transfer agent fees ("Other Expense Reduction") collectively referred to as "Directed Brokerage" in the accompanying table. Directed brokerage generally benefits all shareholders of each class by reducing fund expenses. Each of Class A and Class T shareholders' Other Expense Reduction benefit is reduced by the amount of any Distribution Expense Reduction. In addition, through arrangements with the fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. All of the applicable expense reductions are noted in the table below.
| Directed
Brokerage | |
| Distribution
expense
reduction | Other
expense
reduction | Custody
expense
reduction |
| | | |
Fund Level | $ - | $ 66,710 | $ 263 |
Class A | 1,532 | - | - |
Class T | 6,430 | - | - |
| $ 7,962 | $ 66,710 | $ 263 |
8. Other Information.
At the end of the period, one unaffiliated shareholder was the owner of record of 11% of the total outstanding shares of the fund.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2003 | Year ended
October 31,
2002 |
From net investment income | | |
Class A | $ 291,714 | $ - |
Class T | 397,115 | - |
Institutional Class | 750,560 | - |
Total | $ 1,439,389 | $ - |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2003 | Year ended
October 31,
2002 | Six months ended April 30,
2003 | Year ended
October 31,
2002 |
Class A | | | | |
Shares sold | 4,452,622 | 4,965,926 | $ 49,098,658 | $ 60,391,276 |
Reinvestment of distributions | 24,022 | - | 270,734 | - |
Shares redeemed | (2,361,985) | (3,524,989) | (26,266,319) | (43,044,902) |
Net increase (decrease) | 2,114,659 | 1,440,937 | $ 23,103,073 | $ 17,346,374 |
Class T | | | | |
Shares sold | 13,528,902 | 11,344,882 | $ 149,570,938 | $ 137,198,617 |
Reinvestment of distributions | 33,043 | - | 370,083 | - |
Shares redeemed | (4,296,199) | (5,761,476) | (47,276,069) | (69,065,403) |
Net increase (decrease) | 9,265,746 | 5,583,406 | $ 102,664,952 | $ 68,133,214 |
Class B | | | | |
Shares sold | 1,194,774 | 1,844,077 | $ 12,967,875 | $ 21,855,106 |
Shares redeemed | (566,788) | (958,897) | (6,122,418) | (11,318,826) |
Net increase (decrease) | 627,986 | 885,180 | $ 6,845,457 | $ 10,536,280 |
Class C | | | | |
Shares sold | 1,921,673 | 2,495,501 | $ 20,985,954 | $ 29,291,668 |
Shares redeemed | (936,014) | (1,315,554) | (10,125,496) | (15,655,286) |
Net increase (decrease) | 985,659 | 1,179,947 | $ 10,860,458 | $ 13,636,382 |
Institutional Class | | | | |
Shares sold | 4,691,592 | 8,595,974 | $ 52,521,309 | $ 105,185,292 |
Reinvestment of distributions | 28,706 | - | 325,814 | - |
Shares redeemed | (1,855,514) | (4,386,161) | (20,872,430) | (54,029,124) |
Net increase (decrease) | 2,864,784 | 4,209,813 | $ 31,974,693 | $ 51,156,168 |
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 International
Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
Semiannual Report
Fidelity Advisor Aggressive Growth Fund |
Fidelity Advisor Asset Allocation Fund |
Fidelity Advisor Balanced Fund |
Fidelity Advisor Biotechnology Fund |
Fidelity Advisor California Municipal Income Fund |
Fidelity Advisor Consumer Industries Fund |
Fidelity Advisor Cyclical Industries Fund |
Fidelity Advisor Developing Communications Fund |
Fidelity Advisor Diversified International Fund |
Fidelity Advisor Dividend Growth Fund |
Fidelity Advisor Dynamic Capital Appreciation Fund |
Fidelity Advisor Electronics Fund |
Fidelity Advisor Emerging Asia Fund |
Fidelity Advisor Emerging Markets Income Fund |
Fidelity Advisor Equity Growth Fund |
Fidelity Advisor Equity Income Fund |
Fidelity Advisor Equity Value Fund |
Fidelity Advisor Europe Capital Appreciation Fund |
Fidelity Advisor Fifty Fund |
Fidelity Advisor Financial Services Fund |
Fidelity Advisor Floating Rate High Income Fund |
Fidelity Advisor Global Equity Fund |
Fidelity Advisor Government Investment Fund |
Fidelity Advisor Growth & Income Fund |
Fidelity Advisor Growth Opportunities |
Fidelity Advisor Health Care Fund |
Fidelity Advisor High Income Advantage Fund |
Fidelity Advisor High Income Fund |
Fidelity Advisor Inflation-Protected Bond Fund |
Fidelity Advisor Intermediate Bond Fund |
Fidelity Advisor International Capital Appreciation Fund |
Fidelity Advisor Investment Grade Bond Fund |
Fidelity Advisor Japan Fund |
Fidelity Advisor Korea Fund |
Fidelity Advisor Large Cap Fund |
Fidelity Advisor Latin America Fund |
Fidelity Advisor Leveraged Company Stock Fund |
Fidelity Advisor Mid Cap Fund |
Fidelity Advisor Mortgage Securities Fund |
Fidelity Advisor Municipal Income Fund |
Fidelity Advisor Natural Resources Fund |
Fidelity Advisor New York Municipal Income Fund |
Fidelity Advisor Overseas Fund |
Fidelity Advisor Real Estate Fund |
Fidelity Advisor Short Fixed-Income Fund |
Fidelity Advisor Small Cap Fund |
Fidelity Advisor Strategic Growth Fund |
Fidelity Advisor Strategic Income Fund |
Fidelity Advisor Tax Managed
Stock Fund |
Fidelity Advisor Technology Fund |
Fidelity Advisor Telecommunications & Utilities Growth Fund |
Fidelity Advisor Value Strategies Fund |
Prime Fund |
Tax-Exempt Fund |
Treasury Fund |
(Fidelity Investment logo)(registered trademark)
ADIF-USAN-0603
1.784871.100
Fidelity® Advisor
Diversified International
Fund - Institutional Class
Semiannual Report
April 30, 2003
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
| | |
| | |
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.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.
Neither the fund nor Fidelity Distributors Corporation is a bank.
For more information on any Fidelity Advisor fund, including charges and expenses, contact your investment professional for a free prospectus. Read it carefully before you invest or send money.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
This shareholder update and report on the performance of your fund is among the first to be produced under the new Sarbanes-Oxley Public Company Accounting and Investor Protection Act of 2002. This act requires that public companies certify, under penalty of law, the financial information they report to shareholders. It was adopted by Congress in reaction to several incidents of corporate malfeasance that brought the integrity of management of some publicly traded companies into question.
After the act was signed into law, the Securities and Exchange Commission interpreted it as applying to mutual funds as well as public companies. Thus, every mutual fund now is required to certify that the financial information provided in annual and semiannual reports to shareholders fully and fairly presents its financial position.
There is little doubt that the intent of Congress and regulators in this matter is a noble one - to improve the accuracy and accountability of financial reporting to investors by corporate America. We in no way condone any of the activities that brought about these requirements, and we welcome any and every reasonable proposal to strengthen investor protection and information disclosure.
That said, we are proud that mutual funds have always provided full and fair disclosure. Governed by the Investment Company Act of 1940 - and monitored and regulated by federal and state agencies, industry oversight associations, and independent directors - mutual funds are among the most transparent of all financial products. For example, the prices of mutual fund shares are established and published every business day, and the majority of members of the Board of Trustees that oversees our funds are not affiliated with the business of Fidelity. The disclosure standards of mutual funds actually have become models for governance and transparency across corporate America.
We are, of course, complying in full with the letter of this new requirement and hope that any future efforts by Congress to reassure investors about the honesty of corporate America will focus on practical and substantive solutions of genuine value to shareholders.
This sort of careful consideration was evident as Congress deliberated President Bush's tax cut package this spring, then enacted legislation that contains a variety of benefits for American families, investors and businesses. Although the final bill did not completely eliminate the tax that individual investors pay when they receive dividends from companies, it still will benefit American investors, and we applaud it in the spirit of compromise that marked the debate in Congress.
At Fidelity, we are committed to acting at all times in accordance with the highest standards of integrity and in the best interests of our fund shareholders. We are proud of the amount of information we provide to those who invest in our funds and pleased to continue that level of communication with you in these reports.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Investment Changes
Top Five Stocks as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Novartis AG (Reg.) (Switzerland, Pharmaceuticals) | 2.5 | 1.8 |
Unilever NV (NY Shares) (Netherlands, Food Products) | 2.0 | 2.1 |
GlaxoSmithKline PLC sponsored ADR (United Kingdom, Pharmaceuticals) | 1.6 | 1.0 |
Altadis SA (Spain) (Spain, Tobacco) | 1.4 | 1.2 |
HSBC Holdings PLC (United Kingdom, Banks) | 1.2 | 0.2 |
| 8.7 | |
Top Five Market Sectors as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 22.1 | 21.0 |
Health Care | 14.3 | 14.2 |
Consumer Discretionary | 12.4 | 9.5 |
Consumer Staples | 11.1 | 10.5 |
Information Technology | 9.6 | 8.3 |
Top Five Countries as of April 30, 2003 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United Kingdom | 15.0 | 11.6 |
Japan | 11.3 | 11.1 |
Switzerland | 7.4 | 5.7 |
France | 7.2 | 10.3 |
Netherlands | 6.8 | 7.6 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2003 | As of October 31, 2002 |
| Stocks and Investment
Companies 94.0% | | | Stocks and Investment
Companies 87.0% | |
| Bonds 1.0% | | | Bonds 3.0% | |
| Short-Term
Investments and
Net Other Assets 5.0% | | | Short-Term
Investments and
Net Other Assets 10.0% | |
Semiannual Report
Investments April 30, 2003 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.7% |
| Shares | | Value (Note 1) |
Australia - 2.8% |
Australia & New Zealand Banking Group Ltd. | 237,400 | | $ 2,774,499 |
Australian Gas Light Co. | 199,907 | | 1,431,856 |
Billabong International Ltd. | 75,900 | | 270,632 |
CSL Ltd. | 194,750 | | 1,908,707 |
Fosters Group Ltd. | 364,442 | | 1,023,132 |
Macquarie Bank Ltd. | 79,573 | | 1,250,600 |
National Australia Bank Ltd. | 114,700 | | 2,335,995 |
News Corp. Ltd.: | | | |
ADR | 9,100 | | 257,348 |
sponsored ADR | 23,300 | | 546,618 |
QBE Insurance Group Ltd. | 586,900 | | 3,140,849 |
Suncorp-Metway Ltd. | 162,900 | | 1,160,664 |
Westfield Holdings Ltd. | 180,600 | | 1,652,326 |
TOTAL AUSTRALIA | | 17,753,226 |
Belgium - 0.6% |
Agfa-Gevaert NV | 109,986 | | 2,189,157 |
Groupe Bruxelles Lambert SA (GBL) | 13,937 | | 574,283 |
Melexis NV | 159,750 | | 1,178,974 |
TOTAL BELGIUM | | 3,942,414 |
Bermuda - 0.4% |
Aquarius Platinum Ltd.: | | | |
(Australia) | 373,455 | | 1,216,933 |
(United Kingdom) | 20,000 | | 66,733 |
Clear Media Ltd. (a) | 2,546,100 | | 1,158,928 |
TOTAL BERMUDA | | 2,442,594 |
Brazil - 1.6% |
Aracruz Celulose SA sponsored ADR | 96,300 | | 2,022,300 |
Banco Itau Holding Financeira SA (PN) | 11,303,200 | | 749,405 |
Companhia Brasileira de Distribuicao Grupo Pao de Acucar sponsored ADR | 34,900 | | 506,050 |
Companhia Vale do Rio Doce sponsored ADR | 95,900 | | 2,681,364 |
Petroleo Brasileiro SA Petrobras sponsored ADR | 83,800 | | 1,554,490 |
Uniao de Bancos Brasileiros SA (Unibanco) GDR | 147,500 | | 2,677,125 |
Votorantim Celulose e Papel SA sponsored ADR | 19,400 | | 368,600 |
TOTAL BRAZIL | | 10,559,334 |
Canada - 5.7% |
Alcan, Inc. | 31,900 | | 934,636 |
Barrick Gold Corp. | 44,700 | | 679,465 |
Bombardier, Inc. Class B (sub. vtg.) | 388,700 | | 940,906 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Canada - continued |
Brascan Corp. Class A (ltd. vtg.) | 27,900 | | $ 629,623 |
Canadian Natural Resources Ltd. | 39,200 | | 1,307,122 |
Canadian Western Bank, Edmonton | 13,900 | | 286,048 |
EnCana Corp. | 134,644 | | 4,415,497 |
Hurricane Hydrocarbons Class A (a) | 90,800 | | 994,461 |
ITF Optical Technologies, Inc. Series A (d) | 1,792 | | 2,240 |
Kinross Gold Corp. (a) | 131,833 | | 813,897 |
Loblaw Companies Ltd. | 16,700 | | 652,389 |
Mega Bloks, Inc. | 17,200 | | 275,968 |
Mega Bloks, Inc. (a)(c) | 23,400 | | 375,445 |
Metro, Inc. Class A (sub. vtg.) | 24,000 | | 322,288 |
Molson, Inc. Class A | 42,200 | | 971,468 |
National Bank of Canada | 69,500 | | 1,692,047 |
OZ Optics Ltd. unit (d) | 5,400 | | 79,650 |
Petro-Canada | 156,800 | | 5,170,517 |
Potash Corp. of Saskatchewan | 5,820 | | 358,051 |
Power Corp. of Canada (sub. vtg.) | 69,200 | | 1,943,007 |
Precision Drilling Corp. (a) | 95,200 | | 3,258,782 |
Saputo, Inc. | 58,300 | | 1,026,910 |
Sun Life Financial Services of Canada, Inc. | 107,218 | | 2,202,700 |
Talisman Energy, Inc. | 81,800 | | 3,265,723 |
Teck Cominco Ltd. Class B (sub. vtg.) | 19,000 | | 135,989 |
Tembec, Inc. (a) | 22,900 | | 116,137 |
Thunder Energy, Inc. (a) | 77,800 | | 341,918 |
TimberWest Forest Corp. unit | 172,600 | | 1,476,160 |
TransCanada PipeLines Ltd. | 102,000 | | 1,629,438 |
Trican Well Service Ltd. (a) | 48,500 | | 669,899 |
TOTAL CANADA | | 36,968,381 |
Cayman Islands - 0.2% |
Apex Silver Mines Ltd. (a) | 86,800 | | 1,132,740 |
China - 0.1% |
Byd Co. Ltd. (H Shares) | 299,000 | | 592,315 |
PetroChina Co. Ltd. sponsored ADR | 15,200 | | 353,704 |
TOTAL CHINA | | 946,019 |
Croatia - 0.1% |
Pliva D.D. GDR | 63,700 | | 875,875 |
Denmark - 2.8% |
Coloplast AS Series B | 33,850 | | 2,506,087 |
D/S 1912: | | | |
Series A | 37 | | 325,709 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Denmark - continued |
D/S 1912: - continued | | | |
Series B | 55 | | $ 494,094 |
Danske Bank AS | 168,950 | | 3,254,172 |
Group 4 Falck AS | 126,160 | | 2,202,176 |
Novo Nordisk AS Series B | 181,643 | | 6,587,309 |
Novozymes AS Series B | 110,800 | | 2,709,352 |
TOTAL DENMARK | | 18,078,899 |
Finland - 0.8% |
Nokia Corp. sponsored ADR | 299,500 | | 4,962,715 |
France - 7.2% |
Alcatel SA sponsored ADR | 11,600 | | 93,496 |
AXA SA sponsored ADR | 135,600 | | 2,059,764 |
Bacou Dalloz (a) | 8,807 | | 725,797 |
BNP Paribas SA | 116,400 | | 5,474,466 |
Carbone Lorraine | 21,431 | | 541,590 |
CNP Assurances | 57,393 | | 2,311,650 |
Dassault Aviation SA | 2,208 | | 555,522 |
Elior SA | 126,500 | | 735,552 |
Essilor International SA | 51,178 | | 2,099,667 |
Eurazeo SA | 13,934 | | 711,273 |
Financiere Marc de Lacharriere SA (Fimalac) | 35,029 | | 838,226 |
Financiere Marc de Lacharriere SA (Fimalac) warrants 12/31/06 (a) | 4,632 | | 8,805 |
Ipsos SA | 11,752 | | 604,490 |
L'Air Liquide SA | 15,162 | | 2,300,678 |
L'Oreal SA | 24,950 | | 1,786,937 |
Marionnaud Parfumeries SA (a) | 14,022 | | 380,225 |
Michelin SA (Compagnie Generale des Etablissements)
Series B | 32,452 | | 1,202,941 |
Neopost SA (a) | 98,246 | | 3,405,619 |
NRJ Group | 75,475 | | 1,181,546 |
Pernod-Ricard | 38,837 | | 3,415,575 |
Remy Cointreau SA | 6,771 | | 195,719 |
Schneider Electric SA | 9,184 | | 435,634 |
Suez SA (France) | 38,100 | | 621,584 |
Technip-Coflexip SA | 49,033 | | 4,024,427 |
Television Francaise 1 SA | 91,733 | | 2,581,834 |
TotalFinaElf SA: | | | |
Series B | 13,000 | | 1,708,200 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
France - continued |
TotalFinaElf SA: - continued | | | |
sponsored ADR | 85,800 | | $ 5,637,060 |
Vinci SA | 10,000 | | 652,470 |
TOTAL FRANCE | | 46,290,747 |
Germany - 4.3% |
Adidas-Salomon AG | 3,800 | | 327,610 |
Allianz AG: | | | |
(Reg.) | 22,007 | | 1,558,931 |
sponsored ADR | 77,100 | | 550,494 |
Altana AG | 47,750 | | 2,343,999 |
Amadeus AG | 11,063 | | 54,431 |
Celanese AG (Reg.) | 65,556 | | 1,451,433 |
Deutsche Boerse AG | 84,261 | | 3,957,267 |
Deutsche Telekom AG sponsored ADR | 283,100 | | 3,793,540 |
DIS Deutscher Industrie Service AG | 28,525 | | 446,553 |
Gehe AG | 33,027 | | 1,312,520 |
Infineon Technologies AG sponsored ADR (a) | 204,100 | | 1,553,201 |
Lambda Physik AG (a) | 17,498 | | 177,466 |
Metro AG | 43,000 | | 1,196,776 |
Muenchener Rueckversicherungs-Gesellschaft AG (Reg.) | 12,634 | | 1,264,397 |
Rhoen-Klinikum AG | 4,946 | | 185,276 |
Schering AG sponsored ADR | 31,100 | | 1,386,749 |
Schwarz Pharma AG | 19,900 | | 867,835 |
Stada Arzneimittel AG | 73,753 | | 3,867,871 |
Wella AG | 13,384 | | 1,364,150 |
TOTAL GERMANY | | 27,660,499 |
Greece - 0.6% |
Coca-Cola Hellenic Bottling Co. SA (Bearer) | 69,820 | | 1,022,753 |
Cosmote Mobile Telecommunications SA | 76,100 | | 789,682 |
Hellenic Technodomiki Tev SA | 64,290 | | 402,579 |
Public Power Corp. of Greece | 84,910 | | 1,289,372 |
Technical Olympic SA (Reg.) | 100,100 | | 323,483 |
TOTAL GREECE | | 3,827,869 |
Hong Kong - 1.6% |
Aeon Credit Service (Asia) Co. Ltd. | 634,000 | | 197,130 |
China Mobile (Hong Kong) Ltd. sponsored ADR | 157,300 | | 1,574,573 |
CNOOC Ltd. sponsored ADR | 72,100 | | 1,890,462 |
Esprit Holdings Ltd. | 523,000 | | 1,025,996 |
Hong Kong Exchanges & Clearing Ltd. | 540,000 | | 630,069 |
Li & Fung Ltd. | 796,000 | | 893,046 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Hong Kong - continued |
Techtronic Industries Co. | 1,306,000 | | $ 1,641,051 |
Television Broadcasts Ltd. | 272,000 | | 831,783 |
Yue Yuen Industrial Holdings Ltd. | 683,561 | | 1,402,329 |
TOTAL HONG KONG | | 10,086,439 |
India - 1.5% |
Bajaj Auto Ltd. | 46,300 | | 472,589 |
Dr. Reddy's Laboratories Ltd. | 146,740 | | 2,708,891 |
Infosys Technologies Ltd. | 14,710 | | 867,508 |
Ranbaxy Laboratories Ltd. | 250,580 | | 3,574,419 |
Satyam Computer Services Ltd. | 354,600 | | 1,142,034 |
State Bank of India | 195,600 | | 1,151,403 |
TOTAL INDIA | | 9,916,844 |
Indonesia - 0.1% |
PT Telkomunikasi Indonesia Tbk sponsored ADR | 99,800 | | 924,148 |
Ireland - 2.6% |
Allied Irish Banks PLC | 109,600 | | 1,691,255 |
Bank of Ireland | 372,677 | | 4,604,838 |
CRH PLC | 80,700 | | 1,241,685 |
DCC PLC (Ireland) | 31,450 | | 390,358 |
IAWS Group PLC: | | | |
(Ireland) | 180,500 | | 1,463,304 |
(United Kingdom) (Reg.) | 22,800 | | 183,711 |
Independent News & Media PLC: | | | |
rights 12/31/03 (a) | 109,043 | | 57,308 |
(Ireland) | 419,014 | | 552,879 |
Irish Life & Permanent PLC | 104,600 | | 1,216,423 |
Kerry Group PLC Class A | 107,500 | | 1,592,736 |
Ryanair Holdings PLC sponsored ADR (a) | 93,800 | | 3,721,046 |
TOTAL IRELAND | | 16,715,543 |
Israel - 0.5% |
Check Point Software Technologies Ltd. (a) | 35,200 | | 553,696 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 56,200 | | 2,624,540 |
TOTAL ISRAEL | | 3,178,236 |
Italy - 1.7% |
Banca Intesa Spa | 816,431 | | 2,123,482 |
Banco Popolare di Verona e Novara | 125,713 | | 1,711,467 |
Cassa Di Risparmio Di Firenze | 392,225 | | 499,111 |
Credito Emiliano Spa | 161,930 | | 977,779 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Italy - continued |
Luxottica Group Spa sponsored ADR | 135,800 | | $ 1,522,318 |
Saipem Spa | 77,216 | | 540,075 |
Telecom Italia Spa sponsored ADR | 42,000 | | 3,404,520 |
TOTAL ITALY | | 10,778,752 |
Japan - 11.3% |
Aeon Credit Service Ltd. | 20,500 | | 490,538 |
Asahi National Broadcasting Co. | 138 | | 163,657 |
Canon, Inc. ADR | 170,900 | | 6,854,799 |
Credit Saison Co. Ltd. | 147,600 | | 2,787,014 |
Daito Trust Construction Co. | 69,400 | | 1,327,936 |
Daiwa Securities Group, Inc. | 1,232,000 | | 4,859,818 |
Fuji Photo Film Co. Ltd. | 28,000 | | 715,926 |
Fuji Television Network, Inc. | 102 | | 361,176 |
Hokkaido Coca-Cola Bottling Co. Ltd. | 3,000 | | 13,121 |
Hoya Corp. | 45,000 | | 2,668,321 |
Ito-Yokado Co. Ltd. | 28,000 | | 660,583 |
JAFCO Co. Ltd. | 34,500 | | 1,250,641 |
KDDI Corp. | 76 | | 231,397 |
Keyence Corp. | 9,080 | | 1,464,011 |
Kobayashi Pharmaceutical Co. Ltd. | 4,600 | | 159,401 |
Konica Corp. | 183,000 | | 1,679,238 |
Kyocera Corp. | 42,600 | | 2,085,302 |
Kyocera Corp. sponsored ADR | 10,200 | | 501,738 |
Minolta Co. Ltd. (a) | 170,000 | | 943,690 |
Mitsui O.S.K Lines Ltd. | 78,000 | | 204,685 |
Murata Manufacturing Co. Ltd. | 37,700 | | 1,347,618 |
Nikko Cordial Corp. | 2,022,000 | | 5,442,113 |
Nikon Corp. (a) | 122,000 | | 815,762 |
Nintendo Co. Ltd. | 7,800 | | 611,430 |
Nissan Motor Co. Ltd. | 575,600 | | 4,411,974 |
Nomura Holdings, Inc. | 708,000 | | 7,032,659 |
Olympus Optical Co. Ltd. | 60,000 | | 1,042,096 |
ORIX Corp. | 62,700 | | 2,874,091 |
Rohm Co. Ltd. | 28,000 | | 2,894,319 |
Shin-Etsu Chemical Co. Ltd. | 113,400 | | 3,405,005 |
Sompo Japan Insurance, Inc. | 86,000 | | 394,213 |
Sony Corp. sponsored ADR | 29,300 | | 724,882 |
Stanley Electric Co. Ltd. | 67,000 | | 845,284 |
Sumisho Lease Co. Ltd. | 8,000 | | 111,830 |
Takeda Chemical Industries Ltd. | 79,300 | | 2,914,681 |
Tanabe Seiyaku Co. Ltd. | 28,000 | | 184,633 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Japan - continued |
Terumo Corp. | 80,400 | | $ 1,340,958 |
Tokyo Electron Ltd. | 68,600 | | 2,579,099 |
Toyota Industries Corp. | 50,500 | | 749,674 |
Toyota Motor Corp. ADR | 70,600 | | 3,196,768 |
Yamada Denki Co. Ltd. | 23,800 | | 460,406 |
TOTAL JAPAN | | 72,802,487 |
Korea (South) - 1.3% |
Amorepacific Corp. | 9,000 | | 796,624 |
Cheil Industries, Inc. | 23,200 | | 293,224 |
KT Corp. sponsored ADR | 94,500 | | 1,912,680 |
KT&G Corp. | 15,450 | | 236,616 |
LG Electronics, Inc. | 19,320 | | 666,536 |
Samsung Electro-Mechanics Co. Ltd. | 3,800 | | 112,170 |
Samsung Electronics Co. Ltd. | 17,330 | | 4,352,120 |
TOTAL KOREA (SOUTH) | | 8,369,970 |
Luxembourg - 0.2% |
Espirito Santo Financial Holding SA ADR | 81,540 | | 1,432,658 |
Mexico - 1.4% |
Coca-Cola Femsa SA de CV sponsored ADR | 107,100 | | 2,275,875 |
Fomento Economico Mexicano SA de CV sponsored ADR | 24,200 | | 918,632 |
Grupo Radio Centro SA de CV sponsored ADR (a) | 86,400 | | 318,816 |
Grupo Televisa SA de CV sponsored ADR (a) | 8,800 | | 266,992 |
Telefonos de Mexico SA de CV sponsored ADR | 113,800 | | 3,437,898 |
TV Azteca SA de CV sponsored ADR | 301,000 | | 1,745,800 |
TOTAL MEXICO | | 8,964,013 |
Netherlands - 6.5% |
ASM International NV (Nasdaq) (a) | 26,100 | | 355,743 |
ASML Holding NV (NY Shares) (a) | 388,800 | | 3,425,328 |
Euronext NV | 159,347 | | 3,528,000 |
Fugro NV (Certificaten Van Aandelen) | 36,300 | | 1,475,470 |
Heineken Holding NV (A Shares) | 51,725 | | 1,503,233 |
Hunter Douglas NV | 9,680 | | 283,593 |
ING Groep NV (Certificaten Van Aandelen) | 213,641 | | 3,475,898 |
Koninklijke Philips Electronics NV (NY Shares) | 118,200 | | 2,207,976 |
OPG Groep NV | 34,600 | | 1,083,312 |
Royal Dutch Petroleum Co. (NY Shares) | 110,900 | | 4,533,592 |
Unilever NV (NY Shares) | 205,900 | | 12,965,523 |
Van der Moolen Holding NV sponsored ADR | 55,900 | | 592,540 |
Vedior NV (Certificaten Van Aandelen) | 197,792 | | 1,307,121 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Netherlands - continued |
VNU NV | 112,149 | | $ 3,260,530 |
Wolters Kluwer NV (Certificaten Van Aandelen) | 165,200 | | 2,155,760 |
TOTAL NETHERLANDS | | 42,153,619 |
Netherlands Antilles - 0.4% |
Schlumberger Ltd. (NY Shares) | 68,400 | | 2,868,012 |
Norway - 1.0% |
DnB Holding ASA | 526,900 | | 2,515,180 |
Gjensidige NOR ASA | 47,700 | | 1,653,196 |
ProSafe ASA (a) | 32,550 | | 548,943 |
Schibsted AS (B Shares) | 72,800 | | 842,773 |
Storebrand ASA (A Shares) (a) | 212,100 | | 863,933 |
TOTAL NORWAY | | 6,424,025 |
Panama - 0.1% |
Banco Latin Americano de Exporaciones SA (BLADEX)
Series E (a) | 59,260 | | 512,599 |
Russia - 1.5% |
JSC MMC 'Norilsk Nickel' sponsored ADR | 51,900 | | 1,180,725 |
Lukoil Oil Co. sponsored ADR | 19,700 | | 1,363,240 |
Mobile TeleSystems OJSC sponsored ADR (a) | 15,500 | | 744,000 |
OAO Gazprom sponsored ADR | 22,800 | | 359,100 |
Sibneft sponsored ADR (a) | 45,700 | | 1,065,267 |
YUKOS Corp. sponsored ADR | 27,100 | | 4,742,500 |
TOTAL RUSSIA | | 9,454,832 |
Singapore - 1.0% |
DBS Group Holdings Ltd. | 158,500 | | 777,750 |
Flextronics International Ltd. (a) | 441,300 | | 3,861,375 |
Fraser & Neave Ltd. | 68,800 | | 310,434 |
Singapore Exchange Ltd. | 933,000 | | 641,997 |
Want Want Holdings Ltd. | 1,061,000 | | 700,260 |
TOTAL SINGAPORE | | 6,291,816 |
South Africa - 1.0% |
Anglo American Platinum Corp. Ltd. | 16,600 | | 464,361 |
Gold Fields Ltd. sponsored ADR | 66,600 | | 675,990 |
Harmony Gold Mining Co. Ltd. | 75,800 | | 800,346 |
Harmony Gold Mining Co. Ltd. sponsored ADR | 136,700 | | 1,435,350 |
Sappi Ltd. | 255,800 | | 3,153,391 |
TOTAL SOUTH AFRICA | | 6,529,438 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Spain - 4.0% |
Actividades de Construccion y Servicios SA (ACS) | 26,300 | | $ 992,542 |
Altadis SA (Spain) | 354,360 | | 9,153,268 |
Banco Bilbao Vizcaya Argentaria SA sponsored ADR | 119,900 | | 1,216,985 |
Banco Popular Espanol SA (Reg.) | 59,176 | | 2,874,451 |
Banco Santander Central Hispano SA ADR | 564,200 | | 4,434,612 |
Compania de Distribucion Integral Logista SA | 39,528 | | 884,004 |
Fomento Construcciones y Contratas SA (FOCSA) | 85,668 | | 2,197,513 |
Grupo Ferrovial SA | 58,071 | | 1,544,154 |
Inditex SA | 130,056 | | 2,597,355 |
Telefonica SA sponsored ADR | 851 | | 28,296 |
TOTAL SPAIN | | 25,923,180 |
Sweden - 2.0% |
Eniro AB | 172,300 | | 1,320,574 |
Getinge AB (B Shares) | 63,000 | | 1,429,255 |
Hennes & Mauritz AB (H&M) (B Shares) | 116,200 | | 2,593,432 |
Nordea AB | 229,100 | | 1,219,304 |
Securitas AB (B Shares) | 111,800 | | 1,316,165 |
Svenska Cellulosa AB (SCA) (B Shares) | 74,250 | | 2,522,165 |
Swedish Match Co. | 309,100 | | 2,293,252 |
TV 4 AB (A Shares) | 6,600 | | 82,555 |
TOTAL SWEDEN | | 12,776,702 |
Switzerland - 7.4% |
Actelion Ltd. (Reg.) (a) | 15,986 | | 1,025,092 |
Alcon, Inc. | 54,100 | | 2,383,105 |
Centerpulse AG sponsored ADR | 159,000 | | 3,526,620 |
Converium Holding AG | 58,328 | | 2,637,766 |
Credit Suisse Group sponsored ADR | 160,300 | | 3,831,170 |
INFICON Holding AG (a) | 10,631 | | 627,154 |
Nestle SA (Reg.) | 21,360 | | 4,360,632 |
Nobel Biocare Holding AG (Switzerland) | 61,223 | | 3,390,228 |
Novartis AG (Reg.) | 406,962 | | 16,075,360 |
Roche Holding AG (participation certificate) | 29,464 | | 1,877,395 |
Schindler Holding AG (Reg'd.) | 9,961 | | 1,779,801 |
SIG Holding AG | 8,754 | | 906,489 |
Swiss Reinsurance Co. (Reg.) | 21,200 | | 1,386,828 |
Tecan Group AG | 17,646 | | 464,471 |
The Swatch Group AG (Reg.) | 126,746 | | 2,175,756 |
UBS AG (NY Shares) | 19,247 | | 913,270 |
Unilabs SA | 21,650 | | 314,903 |
TOTAL SWITZERLAND | | 47,676,040 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Taiwan - 1.0% |
Chinatrust Financial Holding Co. (a) | 2,436,000 | | $ 1,901,268 |
Fubon Financial Holding Co. Ltd. | 1,131,787 | | 772,928 |
Taiwan Semiconductor Manufacturing Co. Ltd. (a) | 1,516,556 | | 2,080,097 |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR (a) | 198,000 | | 1,657,260 |
Yuanta Core Pacific Securities Co. Ltd. | 681,355 | | 293,266 |
TOTAL TAIWAN | | 6,704,819 |
Thailand - 0.0% |
BEC World PCL (For. Reg.) | 8,900 | | 42,851 |
United Kingdom - 15.0% |
Amdocs Ltd. (a) | 74,200 | | 1,310,372 |
Amvescap PLC | 263,200 | | 1,432,076 |
Anglo American PLC: | | | |
ADR | 14,905 | | 212,694 |
(United Kingdom) | 35,400 | | 507,590 |
ARM Holdings PLC sponsored ADR (a) | 370,200 | | 1,140,216 |
AstraZeneca PLC sponsored ADR | 72,900 | | 2,906,523 |
BBA Group PLC | 329,400 | | 1,023,967 |
BOC Group PLC | 143,327 | | 1,809,699 |
BP PLC sponsored ADR | 81,900 | | 3,156,426 |
British American Tobacco PLC | 38,900 | | 373,510 |
British American Tobacco PLC sponsored ADR | 90,700 | | 1,740,533 |
British Sky Broadcasting Group PLC (BSkyB) sponsored ADR (a) | 9,600 | | 404,160 |
Capital Radio PLC | 101,292 | | 745,649 |
Celltech Group PLC (a) | 140,012 | | 572,476 |
Centrica PLC | 981,900 | | 2,612,344 |
Danka Business Systems PLC sponsored ADR (a) | 175,400 | | 682,306 |
Diageo PLC | 184,600 | | 2,050,183 |
Enterprise Inns PLC | 67,387 | | 672,918 |
Gallaher Group PLC sponsored ADR | 61,500 | | 2,329,620 |
GlaxoSmithKline PLC sponsored ADR | 254,280 | | 10,303,426 |
GWR Group PLC | 82,300 | | 216,654 |
HBOS PLC | 178,484 | | 2,093,653 |
HSBC Holdings PLC: | | | |
(United Kingdom) (Reg.) | 3,300 | | 36,095 |
sponsored ADR | 146,300 | | 8,001,147 |
Inchcape PLC | 88,460 | | 1,034,822 |
Informa Group PLC | 65,600 | | 200,511 |
Intertek Testing Services PLC | 133,300 | | 773,285 |
Johnson Service Group PLC | 154,133 | | 720,244 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
United Kingdom - continued |
Johnston Press PLC | 165,270 | | $ 993,128 |
Kingfisher PLC | 847,186 | | 3,314,813 |
London Stock Exchange PLC | 189,123 | | 983,624 |
Maiden Group PLC | 140,000 | | 444,723 |
Next PLC | 185,000 | | 2,793,284 |
Northern Rock PLC | 274,300 | | 3,140,775 |
Pearson PLC sponsored ADR | 119,000 | | 1,010,310 |
PHS Group PLC | 677,708 | | 715,794 |
Premier Oil PLC (a) | 232,400 | | 103,205 |
Professional Staff PLC sponsored ADR (a) | 30,400 | | 60,800 |
Prudential PLC | 527,400 | | 3,232,513 |
Punch Taverns Ltd. | 191,600 | | 653,862 |
Reckitt Benckiser PLC | 289,100 | | 5,105,307 |
Rentokil Initial PLC | 368,900 | | 1,103,956 |
Rio Tinto PLC (Reg.) | 119,000 | | 2,277,611 |
SMG PLC | 516,057 | | 648,289 |
Smith & Nephew PLC | 337,900 | | 2,256,243 |
Standard Chartered PLC | 48,200 | | 538,399 |
Taylor Nelson Sofres PLC | 620,820 | | 1,326,320 |
Tesco PLC | 1,784,200 | | 5,653,405 |
Trinity Mirror PLC | 290,842 | | 2,029,294 |
Ultraframe PLC | 64,587 | | 244,443 |
United Business Media PLC | 169,209 | | 676,963 |
Vodafone Group PLC sponsored ADR | 309,400 | | 6,113,744 |
William Hill PLC | 115,500 | | 431,589 |
WPP Group PLC | 75,900 | | 540,813 |
Xstrata PLC | 162,400 | | 1,446,281 |
TOTAL UNITED KINGDOM | | 96,902,587 |
United States of America - 3.4% |
Avon Products, Inc. | 10,000 | | 581,700 |
Baxter International, Inc. | 42,100 | | 968,300 |
Coherent, Inc. (a) | 7,600 | | 174,800 |
Forest Laboratories, Inc. (a) | 36,300 | | 1,877,436 |
Fox Entertainment Group, Inc. Class A (a) | 41,600 | | 1,056,640 |
Freeport-McMoRan Copper & Gold, Inc. Class B | 93,800 | | 1,623,678 |
Mettler-Toledo International, Inc. (a) | 82,200 | | 2,918,100 |
Motorola, Inc. | 383,000 | | 3,029,530 |
Newmont Mining Corp. Holding Co. | 53,420 | | 1,443,408 |
NTL, Inc. (a) | 60,500 | | 1,028,500 |
Orthofix International NV (a) | 60,800 | | 1,711,520 |
Phelps Dodge Corp. (a) | 27,900 | | 870,201 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
United States of America - continued |
Synthes-Stratec, Inc. | 4,098 | | $ 2,586,968 |
Transocean, Inc. | 107,200 | | 2,042,160 |
TOTAL UNITED STATES OF AMERICA | | 21,912,941 |
TOTAL COMMON STOCKS (Cost $594,436,076) | 604,783,863 |
Preferred Stocks - 0.0% |
| | | |
Convertible Preferred Stocks - 0.0% |
Canada - 0.0% |
Metrophotonics, Inc. Series 2 (d) | 8,500 | | 85,000 |
Nonconvertible Preferred Stocks - 0.0% |
Italy - 0.0% |
Telecom Italia Spa Risp (non-vtg.) | 52,100 | | 255,870 |
TOTAL PREFERRED STOCKS (Cost $322,415) | 340,870 |
Investment Companies - 0.3% |
| | | |
China - 0.1% |
China Fund, Inc. | 19,100 | | 304,645 |
Templeton China World Fund, Inc. | 30,000 | | 333,300 |
TOTAL CHINA | | 637,945 |
India - 0.1% |
India Fund | 42,650 | | 410,720 |
Multi-National - 0.1% |
Templeton Dragon Fund, Inc. | 94,600 | | 847,616 |
TOTAL INVESTMENT COMPANIES (Cost $1,907,897) | 1,896,281 |
Corporate Bonds - 0.5% |
| Principal Amount | | Value
(Note 1) |
Convertible Bonds - 0.2% |
Netherlands - 0.2% |
Koninklijke Ahold NV: | | | | |
3% 9/30/03 | NLG | 2,040,000 | | $ 931,573 |
4% 5/19/05 | EUR | 530,000 | | 461,688 |
TOTAL NETHERLANDS | | 1,393,261 |
Nonconvertible Bonds - 0.3% |
Netherlands - 0.1% |
Koninklijke Ahold NV 5.875% 5/9/08 | EUR | 750,000 | | 664,160 |
United States of America - 0.2% |
Ahold Finance USA, Inc.: | | | | |
6.5% 3/14/17 | GBP | 500,000 | | 582,776 |
euro 6.375% 6/8/05 | EUR | 700,000 | | 686,856 |
TOTAL UNITED STATES OF AMERICA | | 1,269,632 |
TOTAL NONCONVERTIBLE BONDS | | 1,933,792 |
TOTAL CORPORATE BONDS (Cost $3,054,225) | 3,327,053 |
Government Obligations - 0.5% |
|
United States of America - 0.5% |
Freddie Mac 5.25% 1/15/06
(Cost $2,595,956) | EUR | 2,805,000 | | 3,331,991 |
Money Market Funds - 8.7% |
| Shares | | Value (Note 1) |
Fidelity Cash Central Fund, 1.29% (b)
(Cost $55,960,971) | 55,960,971 | | $ 55,960,971 |
TOTAL INVESTMENT PORTFOLIO - 103.7% (Cost $658,277,540) | | 669,641,029 |
NET OTHER ASSETS - (3.7)% | | (24,014,158) |
NET ASSETS - 100% | $ 645,626,871 |
Currency Abbreviations |
EUR | - | European Monetary Unit |
GBP | - | British pound |
NLG | - | Dutch guilder |
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 $375,445 or 0.1% of net assets. |
(d) Restricted securities - Investment in securities not registered under the Securities Act of 1933. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
ITF Optical Technologies, Inc. Series A | 10/11/00 | $ 89,985 |
Metrophotonics, Inc. Series 2 | 9/29/00 | $ 85,000 |
OZ Optics Ltd. unit | 8/18/00 | $ 79,704 |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $321,663,892 and $134,223,309, respectively, of which long-term U.S. government and government agency obligations aggregated $0 and $2,998,133, respectively. |
The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $8,927 for the period. |
The fund invested in securities that are not registered under the Securities Act of 1933. At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $166,890 or 0% of net assets. |
Income Tax Information |
At October 31, 2002, the fund had a capital loss carryforward of approximately $73,897,000 of which $6,956,000, $34,999,000 and $31,942,000 will expire on October 31, 2008, 2009 and 2010, respectively. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| April 30, 2003 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $24,688,447) (cost $658,277,540) - See accompanying schedule | | $ 669,641,029 |
Cash | | 50,102 |
Foreign currency held at value (cost $1,827,174) | | 1,820,315 |
Receivable for investments sold | | 1,929,689 |
Receivable for fund shares sold | | 1,688,745 |
Dividends receivable | | 3,153,712 |
Interest receivable | | 264,486 |
Other receivables | | 44,385 |
Total assets | | 678,592,463 |
| | |
Liabilities | | |
Payable for investments purchased | $ 4,288,464 | |
Payable for fund shares redeemed | 2,125,168 | |
Accrued management fee | 374,273 | |
Distribution fees payable | 239,498 | |
Other payables and accrued expenses | 222,200 | |
Collateral on securities loaned, at value | 25,715,989 | |
Total liabilities | | 32,965,592 |
| | |
Net Assets | | $ 645,626,871 |
Net Assets consist of: | | |
Paid in capital | | $ 724,368,648 |
Undistributed net investment income | | 1,473,488 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (91,650,075) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 11,434,810 |
Net Assets | | $ 645,626,871 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| April 30, 2003 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share
($77,928,662 ÷ 6,757,279 shares) | | $ 11.53 |
| | |
Maximum offering price per share (100/94.25 of $11.53) | | $ 12.23 |
Class T:
Net Asset Value and redemption price per share ($318,509,585 ÷ 27,827,762 shares) | | $ 11.45 |
| | |
Maximum offering price per share (100/96.50 of $11.45) | | $ 11.87 |
Class B:
Net Asset Value and offering price per share ($57,631,272 ÷ 5,119,149 shares) A | | $ 11.26 |
| | |
Class C:
Net Asset Value and offering price per share ($67,089,240 ÷ 5,948,917 shares) A | | $ 11.28 |
| | |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($124,468,112 ÷ 10,703,231 shares) | | $ 11.63 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
| Six months ended April 30, 2003 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 6,343,223 |
Interest | | 705,673 |
Security lending | | 144,779 |
| | 7,193,675 |
Less foreign taxes withheld | | (725,972) |
Total income | | 6,467,703 |
| | |
Expenses | | |
Management fee | $ 1,963,614 | |
Transfer agent fees | 928,763 | |
Distribution fees | 1,290,007 | |
Accounting and security lending fees | 163,025 | |
Non-interested trustees' compensation | 1,030 | |
Custodian fees and expenses | 245,819 | |
Registration fees | 99,385 | |
Audit | 27,696 | |
Legal | 14,727 | |
Miscellaneous | 1,432 | |
Total expenses before reductions | 4,735,498 | |
Expense reductions | (74,935) | 4,660,563 |
Net investment income (loss) | | 1,807,140 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities | (14,647,111) | |
Foreign currency transactions | 19,447 | |
Total net realized gain (loss) | | (14,627,664) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 37,890,219 | |
Assets and liabilities in foreign currencies | 20,893 | |
Total change in net unrealized appreciation (depreciation) | | 37,911,112 |
Net gain (loss) | | 23,283,448 |
Net increase (decrease) in net assets resulting from operations | | $ 25,090,588 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended
April 30, 2003
(Unaudited) | Year ended
October 31,
2002 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 1,807,140 | $ 1,012,991 |
Net realized gain (loss) | (14,627,664) | (33,235,740) |
Change in net unrealized appreciation (depreciation) | 37,911,112 | (2,842,129) |
Net increase (decrease) in net assets resulting
from operations | 25,090,588 | (35,064,878) |
Distributions to shareholders from net investment income | (1,439,389) | - |
Share transactions - net increase (decrease) | 175,448,633 | 160,808,418 |
Total increase (decrease) in net assets | 199,099,832 | 125,743,540 |
| | |
Net Assets | | |
Beginning of period | 446,527,039 | 320,783,499 |
End of period (including undistributed net investment income of $1,473,488 and undistributed net investment income of $1,105,737, respectively) | $ 645,626,871 | $ 446,527,039 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 G |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.12 | $ 11.87 | $ 14.54 | $ 13.05 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .05 | .07 | .10 | .22 F | .01 |
Net realized and unrealized gain (loss) | .42 | (.82) | (2.48) | 1.49 | 3.04 |
Total from investment operations | .47 | (.75) | (2.38) | 1.71 | 3.05 |
Distributions from net investment income | (.06) | - | (.29) | (.03) | - |
Distributions from net realized gain | - | - | - | (.17) | - |
Distributions in excess of net realized gain | - | - | - | (.02) | - |
Total distributions | (.06) | - | (.29) | (.22) | - |
Net asset value, end of period | $ 11.53 | $ 11.12 | $ 11.87 | $ 14.54 | $ 13.05 |
Total Return B, C, D | 4.24% | (6.32)% | (16.69)% | 13.13% | 30.50% |
Ratios to Average Net Assets H | | | | |
Expenses before expense reductions | 1.51% A | 1.46% | 1.50% | 1.52% | 2.60% A |
Expenses net of voluntary waivers, if any | 1.51% A | 1.46% | 1.50% | 1.52% | 2.00% A |
Expenses net of all reductions | 1.48% A | 1.43% | 1.46% | 1.50% | 1.97% A |
Net investment income (loss) | .94% A | .54% | .77% | 1.44% | .05% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 77,929 | $ 51,616 | $ 38,016 | $ 27,314 | $ 3,841 |
Portfolio turnover rate | 54% A | 53% | 84% | 87% | 78% A |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FInvestment income per share reflects a special dividend which amounted to $.13 per share. GFor the period December 17, 1998 (commencement of operations) to October 31, 1999. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 G |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.01 | $ 11.80 | $ 14.46 | $ 13.02 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .03 | .02 | .06 | .17 F | (.02) |
Net realized and unrealized gain (loss) | .43 | (.81) | (2.46) | 1.49 | 3.04 |
Total from investment operations | .46 | (.79) | (2.40) | 1.66 | 3.02 |
Distributions from net investment income | (.02) | - | (.26) | (.03) | - |
Distributions from net realized gain | - | - | - | (.17) | - |
Distributions in excess of net realized gain | - | - | - | (.02) | - |
Total distributions | (.02) | - | (.26) | (.22) | - |
Net asset value, end of period | $ 11.45 | $ 11.01 | $ 11.80 | $ 14.46 | $ 13.02 |
Total Return B, C, D | 4.18% | (6.69)% | (16.90)% | 12.78% | 30.20% |
Ratios to Average Net Assets H | | | | |
Expenses before expense reductions | 1.84% A | 1.79% | 1.81% | 1.82% | 2.84% A |
Expenses net of voluntary waivers, if any | 1.84% A | 1.79% | 1.81% | 1.82% | 2.25% A |
Expenses net of all reductions | 1.81% A | 1.76% | 1.76% | 1.80% | 2.22% A |
Net investment income (loss) | .61% A | .21% | .47% | 1.15% | (.20)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 318,510 | $ 204,408 | $ 153,128 | $ 139,347 | $ 32,132 |
Portfolio turnover rate | 54% A | 53% | 84% | 87% | 78% A |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FInvestment income per share reflects a special dividend which amounted to $.13 per share. GFor the period December 17, 1998 (commencement of operations) to October 31, 1999. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 G |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.84 | $ 11.68 | $ 14.33 | $ 12.96 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | -I | (.04) | (.01) | .09 F | (.07) |
Net realized and unrealized gain (loss) | .42 | (.80) | (2.44) | 1.49 | 3.03 |
Total from investment operations | .42 | (.84) | (2.45) | 1.58 | 2.96 |
Distributions from net investment income | - | - | (.20) | (.02) | - |
Distributions from net realized gain | - | - | - | (.17) | - |
Distributions in excess of net realized gain | - | - | - | (.02) | - |
Total distributions | - | - | (.20) | (.21) | - |
Net asset value, end of period | $ 11.26 | $ 10.84 | $ 11.68 | $ 14.33 | $ 12.96 |
Total Return B, C, D | 3.87% | (7.19)% | (17.33)% | 12.21% | 29.60% |
Ratios to Average Net Assets H | | | | |
Expenses before expense reductions | 2.39% A | 2.32% | 2.35% | 2.36% | 3.38% A |
Expenses net of voluntary waivers, if any | 2.39% A | 2.32% | 2.35% | 2.36% | 2.75% A |
Expenses net of all reductions | 2.36% A | 2.29% | 2.30% | 2.34% | 2.72% A |
Net investment income (loss) | .06% A | (.32)% | (.07)% | .60% | (.70)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 57,631 | $ 48,693 | $ 42,110 | $ 43,758 | $ 10,839 |
Portfolio turnover rate | 54% A | 53% | 84% | 87% | 78% A |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FInvestment income per share reflects a special dividend which amounted to $.13 per share. GFor the period December 17, 1998 (commencement of operations) to October 31, 1999. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 G |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.86 | $ 11.68 | $ 14.34 | $ 12.96 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .01 | (.03) | - I | .10 F | (.07) |
Net realized and unrealized gain (loss) | .41 | (.79) | (2.45) | 1.48 | 3.03 |
Total from investment operations | .42 | (.82) | (2.45) | 1.58 | 2.96 |
Distributions from net investment income | - | - | (.21) | (.01) | - |
Distributions from net realized gain | - | - | - | (.17) | - |
Distributions in excess of net realized gain | - | - | - | (.02) | - |
Total distributions | - | - | (.21) | (.20) | - |
Net asset value, end of period | $ 11.28 | $ 10.86 | $ 11.68 | $ 14.34 | $ 12.96 |
Total Return B, C, D | 3.87% | (7.02)% | (17.33)% | 12.21% | 29.60% |
Ratios to Average Net Assets H | | | | |
Expenses before expense reductions | 2.30% A | 2.25% | 2.28% | 2.32% | 3.36% A |
Expenses net of voluntary waivers, if any | 2.30% A | 2.25% | 2.28% | 2.32% | 2.75% A |
Expenses net of all reductions | 2.27% A | 2.22% | 2.24% | 2.30% | 2.72% A |
Net investment income (loss) | .15% A | (.25)% | (.01)% | .65% | (.70)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 67,089 | $ 53,883 | $ 44,206 | $ 37,765 | $ 8,142 |
Portfolio turnover rate | 54% A | 53% | 84% | 87% | 78% A |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FInvestment income per share reflects a special dividend which amounted to $.13 per share. GFor the period December 17, 1998 (commencement of operations) to October 31, 1999. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. IAmount represents less than $.01 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.22 | $ 11.94 | $ 14.60 | $ 13.08 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) D | .07 | .11 | .14 | .26 E | .03 |
Net realized and unrealized gain (loss) | .43 | (.83) | (2.48) | 1.49 | 3.05 |
Total from investment operations | .50 | (.72) | (2.34) | 1.75 | 3.08 |
Distributions from net investment income | (.09) | - | (.32) | (.04) | - |
Distributions from net realized gain | - | - | - | (.17) | - |
Distributions in excess of net realized gain | - | - | - | (.02) | - |
Total distributions | (.09) | - | (.32) | (.23) | - |
Net asset value, end of period | $ 11.63 | $ 11.22 | $ 11.94 | $ 14.60 | $ 13.08 |
Total Return B, C | 4.48% | (6.03)% | (16.38)% | 13.42% | 30.80% |
Ratios to Average Net Assets G | | | | |
Expenses before expense reductions | 1.14% A | 1.11% | 1.17% | 1.24% | 2.34% A |
Expenses net of voluntary waivers, if any | 1.14% A | 1.11% | 1.17% | 1.24% | 1.75% A |
Expenses net of all reductions | 1.11% A | 1.07% | 1.12% | 1.22% | 1.72% A |
Net investment income (loss) | 1.31% A | .89% | 1.11% | 1.73% | .30% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 124,468 | $ 87,927 | $ 43,323 | $ 20,300 | $ 4,182 |
Portfolio turnover rate | 54% A | 53% | 84% | 87% | 78% A |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DCalculated based on average shares outstanding during the period. EInvestment income per share reflects a special dividend which amounted to $.13 per share. FFor the period December 17, 1998 (commencement of operations) to October 31, 1999. GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2003 (Unaudited)
1. Significant Accounting Policies.
Fidelity Advisor Diversified International Fund (the fund) is a fund of Fidelity Advisor Series VIII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
The fund offers Class A, Class T, Class B, Class C and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
The fund's 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 fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. Debt securities for which quotations are readily available are valued at their most recent bid prices (sales prices if the principal market is an exchange) in the principal market in which such securities are normally traded, as determined by recognized dealers in such securities, or securities are valued on the basis of information provided by a pricing service. Pricing services use valuation matrices that incorporate both dealer-supplied valuations and electronic data processing techniques. If an event that is expected to materially affect the value of a security occurs after the close of an exchange or market on which that security trades, but prior to the NAV calculation, then that security will be fair valued taking the event into account. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
1. Significant Accounting Policies - continued
Security Valuation - continued
securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. 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 fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, which includes amortization of premium and accretion of discount on debt securities, as required, 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.
Income Tax Information and Distributions to Shareholders. Each year the fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. Foreign taxes are provided for based on each fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Income dividends and capital gain distributions are declared separately for each class. Distributions are recorded on the ex-dividend date.
Semiannual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Capital accounts within the financial statements are adjusted for permanent and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), prior period premium and discount on debt securities, non-taxable dividends, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investments including unrealized appreciation (depreciation) as of period end was as follows:
Unrealized appreciation | $ 62,998,574 | | |
Unrealized depreciation | (54,538,415) | |
Net unrealized appreciation (depreciation) | $ 8,460,159 | |
Cost for federal income tax purposes | $ 661,180,870 | |
2. Operating Policies.
Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. The custodian bank receives the collateral, which is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
Restricted Securities. The fund may 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 captions "Legend" and/or "Other Information" at the end of the fund's Schedule of Investments.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Purchases and Sales of Investments.
Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee.
The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the fund's average net assets and a group fee rate that averaged .28% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .73% of the fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. Class A and Class T Plans also authorize the use of brokerage commissions to pay distribution expenses. In addition, FDC may pay financial intermediaries for selling shares of the fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, the total amounts paid to and retained by FDC and the amount of distribution expenses paid with brokerage commissions were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC | Paid with
Commissions |
Class A | .01% | .25% | $ 77,929 | $ 462 | $ 1,532 |
Class T | .25% | .25% | 651,288 | 11,096 | 6,430 |
Class B | .75% | .25% | 260,137 | 195,534 | - |
Class C | .75% | .25% | 300,653 | 78,050 | - |
| | | $ 1,290,007 | $ 285,142 | $ 7,962 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares of the fund. FDC receives the proceeds of contingent deferred sales charge (CDSC) levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, and .25% for certain purchases of Class A and Class T shares.
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC | |
Class A | $ 45,116 | |
Class T | 20,270 | |
Class B* | 80,565 | |
Class C* | 15,001 | |
| $ 160,952 | |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent (collectively referred to as the transfer agent) for each class of the fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the fund. FIIOC pays for typesetting, printing and mailing of all shareholder reports, except proxy statements. For the period, the following amounts were paid to FIIOC:
| Amount | % of
Average
Net Assets |
Class A | $ 95,849 | .31* |
Class T | 505,791 | .39* |
Class B | 116,947 | .45* |
Class C | 108,371 | .36* |
Institutional Class | 101,805 | .20* |
| $ 928,763 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Fees and Other Transactions with Affiliates - continued
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $351,012 for the period.
Brokerage Commissions. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms are shown under the caption "Other Information" at the end of the fund's Schedule of Investments.
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $3.5 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 fund has agreed to pay commitment fees on its pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.
6. Security Lending.
The fund lends portfolio securities from time to time in order to earn additional income. The 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 fund and any additional required collateral is delivered to the fund 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 the fund's Statement of Assets and Liabilities.
Semiannual Report
7. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services may include payments of expenses on behalf of the fund to support distribution of fund shares for Class A and Class T ("Distribution Expense Reduction") and to pay other fund expenses, such as transfer agent fees ("Other Expense Reduction") collectively referred to as "Directed Brokerage" in the accompanying table. Directed brokerage generally benefits all shareholders of each class by reducing fund expenses. Each of Class A and Class T shareholders' Other Expense Reduction benefit is reduced by the amount of any Distribution Expense Reduction. In addition, through arrangements with the fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. All of the applicable expense reductions are noted in the table below.
| Directed
Brokerage | |
| Distribution
expense
reduction | Other
expense
reduction | Custody
expense
reduction |
| | | |
Fund Level | $ - | $ 66,710 | $ 263 |
Class A | 1,532 | - | - |
Class T | 6,430 | - | - |
| $ 7,962 | $ 66,710 | $ 263 |
8. Other Information.
At the end of the period, one unaffiliated shareholder was the owner of record of 11% of the total outstanding shares of the fund.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2003 | Year ended
October 31,
2002 |
From net investment income | | |
Class A | $ 291,714 | $ - |
Class T | 397,115 | - |
Institutional Class | 750,560 | - |
Total | $ 1,439,389 | $ - |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2003 | Year ended
October 31,
2002 | Six months ended April 30,
2003 | Year ended
October 31,
2002 |
Class A | | | | |
Shares sold | 4,452,622 | 4,965,926 | $ 49,098,658 | $ 60,391,276 |
Reinvestment of distributions | 24,022 | - | 270,734 | - |
Shares redeemed | (2,361,985) | (3,524,989) | (26,266,319) | (43,044,902) |
Net increase (decrease) | 2,114,659 | 1,440,937 | $ 23,103,073 | $ 17,346,374 |
Class T | | | | |
Shares sold | 13,528,902 | 11,344,882 | $ 149,570,938 | $ 137,198,617 |
Reinvestment of distributions | 33,043 | - | 370,083 | - |
Shares redeemed | (4,296,199) | (5,761,476) | (47,276,069) | (69,065,403) |
Net increase (decrease) | 9,265,746 | 5,583,406 | $ 102,664,952 | $ 68,133,214 |
Class B | | | | |
Shares sold | 1,194,774 | 1,844,077 | $ 12,967,875 | $ 21,855,106 |
Shares redeemed | (566,788) | (958,897) | (6,122,418) | (11,318,826) |
Net increase (decrease) | 627,986 | 885,180 | $ 6,845,457 | $ 10,536,280 |
Class C | | | | |
Shares sold | 1,921,673 | 2,495,501 | $ 20,985,954 | $ 29,291,668 |
Shares redeemed | (936,014) | (1,315,554) | (10,125,496) | (15,655,286) |
Net increase (decrease) | 985,659 | 1,179,947 | $ 10,860,458 | $ 13,636,382 |
Institutional Class | | | | |
Shares sold | 4,691,592 | 8,595,974 | $ 52,521,309 | $ 105,185,292 |
Reinvestment of distributions | 28,706 | - | 325,814 | - |
Shares redeemed | (1,855,514) | (4,386,161) | (20,872,430) | (54,029,124) |
Net increase (decrease) | 2,864,784 | 4,209,813 | $ 31,974,693 | $ 51,156,168 |
Semiannual Report
Semiannual Report
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 International
Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
Semiannual Report
Fidelity Advisor Aggressive Growth Fund |
Fidelity Advisor Asset Allocation Fund |
Fidelity Advisor Balanced Fund |
Fidelity Advisor Biotechnology Fund |
Fidelity Advisor California Municipal Income Fund |
Fidelity Advisor Consumer Industries Fund |
Fidelity Advisor Cyclical Industries Fund |
Fidelity Advisor Developing Communications Fund |
Fidelity Advisor Diversified International Fund |
Fidelity Advisor Dividend Growth Fund |
Fidelity Advisor Dynamic Capital Appreciation Fund |
Fidelity Advisor Electronics Fund |
Fidelity Advisor Emerging Asia Fund |
Fidelity Advisor Emerging Markets Income Fund |
Fidelity Advisor Equity Growth Fund |
Fidelity Advisor Equity Income Fund |
Fidelity Advisor Equity Value Fund |
Fidelity Advisor Europe Capital Appreciation Fund |
Fidelity Advisor Fifty Fund |
Fidelity Advisor Financial Services Fund |
Fidelity Advisor Floating Rate High Income Fund |
Fidelity Advisor Global Equity Fund |
Fidelity Advisor Government Investment Fund |
Fidelity Advisor Growth & Income Fund |
Fidelity Advisor Growth Opportunities |
Fidelity Advisor Health Care Fund |
Fidelity Advisor High Income Advantage Fund |
Fidelity Advisor High Income Fund |
Fidelity Advisor Inflation-Protected Bond Fund |
Fidelity Advisor Intermediate Bond Fund |
Fidelity Advisor International Capital Appreciation Fund |
Fidelity Advisor Investment Grade Bond Fund |
Fidelity Advisor Japan Fund |
Fidelity Advisor Korea Fund |
Fidelity Advisor Large Cap Fund |
Fidelity Advisor Latin America Fund |
Fidelity Advisor Leveraged Company Stock Fund |
Fidelity Advisor Mid Cap Fund |
Fidelity Advisor Mortgage Securities Fund |
Fidelity Advisor Municipal Income Fund |
Fidelity Advisor Natural Resources Fund |
Fidelity Advisor New York Municipal Income Fund |
Fidelity Advisor Overseas Fund |
Fidelity Advisor Real Estate Fund |
Fidelity Advisor Short Fixed-Income Fund |
Fidelity Advisor Small Cap Fund |
Fidelity Advisor Strategic Growth Fund |
Fidelity Advisor Strategic Income Fund |
Fidelity Advisor Tax Managed
Stock Fund |
Fidelity Advisor Technology Fund |
Fidelity Advisor Telecommunications & Utilities Growth Fund |
Fidelity Advisor Value Strategies Fund |
Prime Fund |
Tax-Exempt Fund |
Treasury Fund |
(Fidelity Investment logo)(registered trademark)
ADIFI-USAN-0603
1.784872.100
Fidelity® Advisor
Europe Capital Appreciation
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2003
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
| | |
| | |
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.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.
Neither the fund nor Fidelity Distributors Corporation is a bank.
For more information on any Fidelity Advisor fund, including charges and expenses, contact your investment professional for a free prospectus. Read it carefully before you invest or send money.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
This shareholder update and report on the performance of your fund is among the first to be produced under the new Sarbanes-Oxley Public Company Accounting and Investor Protection Act of 2002. This act requires that public companies certify, under penalty of law, the financial information they report to shareholders. It was adopted by Congress in reaction to several incidents of corporate malfeasance that brought the integrity of management of some publicly traded companies into question.
After the act was signed into law, the Securities and Exchange Commission interpreted it as applying to mutual funds as well as public companies. Thus, every mutual fund now is required to certify that the financial information provided in annual and semiannual reports to shareholders fully and fairly presents its financial position.
There is little doubt that the intent of Congress and regulators in this matter is a noble one - to improve the accuracy and accountability of financial reporting to investors by corporate America. We in no way condone any of the activities that brought about these requirements, and we welcome any and every reasonable proposal to strengthen investor protection and information disclosure.
That said, we are proud that mutual funds have always provided full and fair disclosure. Governed by the Investment Company Act of 1940 - and monitored and regulated by federal and state agencies, industry oversight associations, and independent directors - mutual funds are among the most transparent of all financial products. For example, the prices of mutual fund shares are established and published every business day, and the majority of members of the Board of Trustees that oversees our funds are not affiliated with the business of Fidelity. The disclosure standards of mutual funds actually have become models for governance and transparency across corporate America.
We are, of course, complying in full with the letter of this new requirement and hope that any future efforts by Congress to reassure investors about the honesty of corporate America will focus on practical and substantive solutions of genuine value to shareholders.
This sort of careful consideration was evident as Congress deliberated President Bush's tax cut package this spring, then enacted legislation that contains a variety of benefits for American families, investors and businesses. Although the final bill did not completely eliminate the tax that individual investors pay when they receive dividends from companies, it still will benefit American investors, and we applaud it in the spirit of compromise that marked the debate in Congress.
At Fidelity, we are committed to acting at all times in accordance with the highest standards of integrity and in the best interests of our fund shareholders. We are proud of the amount of information we provide to those who invest in our funds and pleased to continue that level of communication with you in these reports.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Investment Changes
Top Five Stocks as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Deutsche Boerse AG (Germany, Diversified Financials) | 6.6 | 5.2 |
Novartis AG (Switzerland, Pharmaceuticals) | 3.9 | 0.0 |
Vodafone Group PLC (United Kingdom, Wireless Telecommunication Services) | 3.6 | 0.0 |
GlaxoSmithKline PLC (United Kingdom, Pharmaceuticals) | 3.4 | 0.0 |
BP PLC sponsored ADR (United Kingdom, Oil & Gas) | 3.2 | 0.0 |
| 20.7 | |
Top Five Market Sectors as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 21.0 | 27.1 |
Consumer Discretionary | 15.7 | 17.6 |
Health Care | 14.3 | 5.3 |
Consumer Staples | 13.0 | 22.8 |
Energy | 12.0 | 7.3 |
Top Five Countries as of April 30, 2003 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United Kingdom | 33.1 | 26.6 |
Germany | 18.5 | 14.8 |
France | 13.2 | 24.7 |
Switzerland | 11.1 | 3.1 |
Spain | 6.6 | 4.7 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2003 | As of October 31, 2002 |
| Stocks 96.9% | | | Stocks 93.1% | |
| Short-Term
Investments and
Net Other Assets 3.1% | | | Short-Term
Investments and
Net Other Assets 6.9% | |
Semiannual Report
Investments April 30, 2003 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.9% |
| Shares | | Value (Note 1) |
Austria - 0.4% |
OMV AG | 600 | | $ 72,191 |
Belgium - 0.5% |
Mobistar SA (a) | 2,500 | | 81,629 |
Denmark - 0.8% |
Novo Nordisk AS Series B | 3,800 | | 137,808 |
Finland - 1.0% |
Nokia Corp. | 10,100 | | 167,357 |
France - 13.2% |
Alcatel SA sponsored ADR | 9,200 | | 74,152 |
Aventis SA | 800 | | 40,272 |
AXA SA sponsored ADR | 6,200 | | 94,178 |
Casino Guichard Perrachon et Compagnie | 1,400 | | 95,494 |
CNP Assurances | 2,000 | | 80,555 |
Credit Agricole SA | 3,900 | | 71,913 |
GrandVision SA | 2,500 | | 46,349 |
L'Air Liquide SA | 400 | | 60,696 |
L'Oreal SA | 2,000 | | 143,241 |
Naf Naf SA (a) | 4,400 | | 88,561 |
NRJ Group | 3,000 | | 46,964 |
Pernod-Ricard | 1,725 | | 151,708 |
Peugeot Citroen SA | 2,000 | | 93,795 |
Renault SA | 3,700 | | 160,322 |
Sanofi-Synthelabo SA | 700 | | 41,837 |
SEB SA | 3,900 | | 366,322 |
Skis Rossignol SA | 3,500 | | 41,094 |
Suez SA | 8,900 | | 145,199 |
TotalFinaElf SA Series B | 2,517 | | 330,734 |
Vivendi Universal SA sponsored ADR | 4,000 | | 65,640 |
TOTAL FRANCE | | 2,239,026 |
Germany - 16.7% |
Adidas-Salomon AG | 1,000 | | 86,213 |
Allianz AG (Reg.) | 1,900 | | 134,592 |
Altana AG | 1,700 | | 83,451 |
BASF AG | 2,400 | | 107,267 |
Bayer AG | 4,600 | | 84,100 |
Deutsche Bank AG | 6,000 | | 309,000 |
Deutsche Boerse AG | 23,708 | | 1,113,433 |
Deutsche Telekom AG (Reg.) | 19,400 | | 259,960 |
E.On AG | 1,400 | | 67,143 |
ESCADA AG | 4,700 | | 38,996 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Germany - continued |
Fresenius Medical Care AG sponsored ADR | 1 | | $ 17 |
Puma AG | 500 | | 48,105 |
SAP AG | 700 | | 71,856 |
Schering AG | 1,800 | | 80,309 |
Sixt AG | 6,300 | | 51,426 |
Suedzucker AG (Bearer) | 2,900 | | 49,225 |
T-Online International AG (a) | 6,600 | | 51,956 |
Zapf Creation AG | 5,400 | | 198,176 |
TOTAL GERMANY | | 2,835,225 |
Italy - 3.1% |
Banca Intesa Spa | 21,781 | | 56,651 |
Banca Nazionale del Lavoro (BNL) (a) | 66,200 | | 107,410 |
Bulgari Spa | 14,700 | | 68,610 |
Saeco International Group | 13,200 | | 50,775 |
Telecom Italia Spa | 22,400 | | 181,574 |
Unicredito Italiano Spa | 13,900 | | 60,960 |
TOTAL ITALY | | 525,980 |
Netherlands - 3.2% |
ING Groep NV (Certificaten Van Aandelen) | 7,830 | | 127,393 |
Koninklijke Philips Electronics NV | 6,200 | | 115,570 |
Koninklijke Philips Electronics NV (NY Shares) | 3,100 | | 57,908 |
Royal Dutch Petroleum Co. (Hague Registry) | 3,300 | | 134,904 |
Samas Groep NV (Certificaten Van Aandelen) | 8,200 | | 29,342 |
Van der Moolen Holding NV sponsored ADR | 6,900 | | 73,140 |
TOTAL NETHERLANDS | | 538,257 |
Russia - 2.0% |
OAO Gazprom sponsored ADR | 2,300 | | 36,225 |
Surgutneftegaz JSC sponsored ADR | 3,300 | | 64,515 |
Vimpel Communications sponsored ADR (a) | 1,800 | | 71,748 |
YUKOS Corp. sponsored ADR | 1,000 | | 175,000 |
TOTAL RUSSIA | | 347,488 |
Spain - 6.6% |
Altadis SA | 11,200 | | 289,301 |
Amadeus Global Travel Distribution SA Series A | 9,900 | | 49,594 |
Banco Espanol de Credito SA (Reg.) | 6,800 | | 55,888 |
Banco Santander Central Hispano SA | 11,960 | | 94,151 |
Corporacion Mapfre SA (Reg.) | 14,500 | | 136,197 |
Grupo Auxiliar Metalurgico SA (Gamesa) (a) | 2,500 | | 51,353 |
Repsol YPF SA | 14,500 | | 211,591 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Spain - continued |
Telefonica SA | 7,800 | | $ 86,435 |
Telefonica SA sponsored ADR | 4,681 | | 155,643 |
TOTAL SPAIN | | 1,130,153 |
Sweden - 1.8% |
Electrolux AB (B Shares) | 3,100 | | 58,354 |
Song Networks Holding AB (a) | 400 | | 1,723 |
Telefonaktiebolaget LM Ericsson (B Shares) (a) | 215,800 | | 195,515 |
TeliaSonera AB | 14,200 | | 50,673 |
TOTAL SWEDEN | | 306,265 |
Switzerland - 11.1% |
Actelion Ltd. (Reg.) (a) | 2,241 | | 143,703 |
Barry Callebaut AG | 550 | | 78,374 |
Centerpulse AG (Reg.) (a) | 250 | | 54,729 |
Credit Suisse Group sponsored ADR | 6,000 | | 143,400 |
Leica Geosystems AG (a) | 260 | | 21,884 |
Nestle SA (Reg.) | 1,569 | | 320,310 |
Novartis AG: | | | |
(Reg.) | 2,800 | | 110,602 |
sponsored ADR | 13,900 | | 548,772 |
Roche Holding AG (participation certificate) | 1,520 | | 96,852 |
Saurer AG (Reg.) (a) | 2,400 | | 62,817 |
Sulzer AG (Reg.) | 450 | | 55,569 |
UBS AG (NY Shares) | 4,000 | | 189,800 |
Zurich Financial Services AG | 500 | | 52,791 |
TOTAL SWITZERLAND | | 1,879,603 |
Turkey - 0.0% |
Turkcell Iletisim Hizmet AS sponsored ADR (a) | 100 | | 1,495 |
United Kingdom - 33.1% |
3i Group PLC | 20,800 | | 154,781 |
Alliance & Leicester PLC | 5,100 | | 66,190 |
AstraZeneca PLC sponsored ADR | 6,100 | | 243,207 |
Autonomy Corp. PLC (a) | 16,300 | | 42,258 |
Avis Europe PLC | 6,000 | | 8,234 |
Barratt Developments PLC | 10,700 | | 71,575 |
Berkeley Group PLC | 4,200 | | 42,008 |
Boots Group PLC | 14,700 | | 134,677 |
BP PLC sponsored ADR | 14,300 | | 551,122 |
BPB PLC | 9,100 | | 45,144 |
British Sky Broadcasting Group PLC (BSkyB) (a) | 14,000 | | 145,291 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
United Kingdom - continued |
BT Group PLC | 40,300 | | $ 117,152 |
Carlton Communications PLC | 50,700 | | 85,192 |
Cattles PLC | 8,100 | | 41,026 |
Celltech Group PLC (a) | 7,400 | | 30,257 |
Corin Group PLC | 1,300 | | 2,827 |
Debenhams PLC | 7,800 | | 40,568 |
Diageo PLC | 9,200 | | 102,176 |
GlaxoSmithKline PLC | 28,200 | | 571,332 |
HBOS PLC | 14,200 | | 166,569 |
Lloyds TSB Group PLC | 14,600 | | 96,144 |
London Stock Exchange PLC | 10,700 | | 55,650 |
Maiden Group PLC | 15,500 | | 49,237 |
Medisys PLC (a) | 49,000 | | 10,782 |
MyTravel Group PLC | 150,700 | | 26,528 |
NDS Group PLC sponsored ADR (a) | 2,700 | | 34,695 |
Next PLC | 6,800 | | 102,672 |
Northgate PLC | 16,600 | | 110,510 |
Prudential PLC | 13,500 | | 82,744 |
Reckitt Benckiser PLC | 6,000 | | 105,956 |
Redrow PLC Class L | 9,200 | | 37,985 |
Rio Tinto PLC sponsored ADR | 900 | | 69,030 |
Shell Transport & Trading Co. PLC (Reg.) | 82,300 | | 495,034 |
SMG PLC | 29,600 | | 37,185 |
Somerfield PLC | 36,200 | | 55,179 |
Spirent PLC | 213,100 | | 71,615 |
SurfControl PLC (a) | 2,500 | | 20,136 |
Sygen International PLC | 91,118 | | 64,159 |
Tesco PLC | 48,800 | | 154,627 |
Trinity Mirror PLC | 11,600 | | 80,937 |
Unilever PLC | 47,200 | | 463,386 |
Vodafone Group PLC | 299,500 | | 591,813 |
Vodafone Group PLC sponsored ADR | 1,300 | | 25,688 |
Wilson Connolly Holdings PLC | 8,200 | | 22,767 |
Woolworths Group PLC | 67,300 | | 37,695 |
Wyevale Garden Centres PLC | 11,800 | | 65,904 |
TOTAL UNITED KINGDOM | | 5,629,644 |
United States of America - 0.4% |
Synthes-Stratec, Inc. | 113 | | 71,334 |
TOTAL COMMON STOCKS (Cost $14,599,482) | 15,963,455 |
Nonconvertible Preferred Stocks - 3.0% |
| Shares | | Value (Note 1) |
Germany - 1.8% |
Fresenius Medical Care AG | 2,700 | | $ 96,311 |
Hugo Boss AG | 2,700 | | 37,437 |
Porsche AG (non-vtg.) | 450 | | 166,053 |
TOTAL GERMANY | | 299,801 |
Italy - 1.2% |
Telecom Italia Spa Risp (non-vtg.) | 42,000 | | 206,268 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $472,217) | 506,069 |
Money Market Funds - 3.1% |
| | | |
Fidelity Cash Central Fund, 1.29% (b)
(Cost $527,105) | 527,105 | | 527,105 |
Cash Equivalents - 0.3% |
| Maturity Amount | | |
Investments in repurchase agreements (Collateralized by U.S. Treasury Obligations, in a joint trading account at 1.27%, dated 4/30/03 due 5/1/03)
(Cost $45,000) | $ 45,002 | | 45,000 |
TOTAL INVESTMENT PORTFOLIO - 100.3% (Cost $15,643,804) | | 17,041,629 |
NET OTHER ASSETS - (0.3)% | | (45,223) |
NET ASSETS - 100% | $ 16,996,406 |
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 $18,591,183 and $19,590,423, respectively. |
Income Tax Information |
At October 31, 2002, the fund had a capital loss carryforward of approximately $7,829,000 of which $635,000, $2,918,000 and $4,276,000 will expire on October 31, 2007, 2009 and 2010, respectively. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| April 30, 2003 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including repurchase agreements of $45,000) (cost $15,643,804) - See accompanying schedule | | $ 17,041,629 |
Cash | | 682 |
Receivable for investments sold | | 246,826 |
Receivable for fund shares sold | | 2,410 |
Dividends receivable | | 115,812 |
Interest receivable | | 582 |
Receivable from investment adviser for expense reductions | | 23,675 |
Other receivables | | 747 |
Total assets | | 17,432,363 |
| | |
Liabilities | | |
Payable for investments purchased | $ 316,226 | |
Payable for fund shares redeemed | 56,797 | |
Accrued management fee | 9,992 | |
Distribution fees payable | 9,213 | |
Other payables and accrued expenses | 43,729 | |
Total liabilities | | 435,957 |
| | |
Net Assets | | $ 16,996,406 |
Net Assets consist of: | | |
Paid in capital | | $ 25,018,819 |
Accumulated net investment loss | | (29,930) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (9,398,619) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 1,406,136 |
Net Assets | | $ 16,996,406 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| April 30, 2003 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share ($2,056,404 ÷ 251,971 shares) | | $ 8.16 |
| | |
Maximum offering price per share (100/94.25 of $8.16) | | $ 8.66 |
Class T:
Net Asset Value and redemption price per share ($6,734,875 ÷ 829,678 shares) | | $ 8.12 |
| | |
Maximum offering price per share (100/96.50 of $8.12) | | $ 8.41 |
Class B:
Net Asset Value and offering price per share ($4,987,777 ÷ 626,294 shares) A | | $ 7.96 |
| | |
Class C:
Net Asset Value and offering price per share ($2,676,460 ÷ 335,623 shares) A | | $ 7.97 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($540,890 ÷ 65,782 shares) | | $ 8.22 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
| Six months ended April 30, 2003 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 190,222 |
Interest | | 7,443 |
Security lending | | 406 |
| | 198,071 |
Less foreign taxes withheld | | (27,223) |
Total income | | 170,848 |
| | |
Expenses | | |
Management fee | $ 62,772 | |
Transfer agent fees | 47,106 | |
Distribution fees | 58,316 | |
Accounting and security lending fees | 30,059 | |
Non-interested trustees' compensation | 35 | |
Custodian fees and expenses | 55,989 | |
Registration fees | 44,374 | |
Audit | 18,558 | |
Legal | 688 | |
Miscellaneous | 48 | |
Total expenses before reductions | 317,945 | |
Expense reductions | (137,798) | 180,147 |
Net investment income (loss) | | (9,299) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities | (1,290,312) | |
Foreign currency transactions | 2,448 | |
Total net realized gain (loss) | | (1,287,864) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 1,605,127 | |
Assets and liabilities in foreign currencies | 5,169 | |
Total change in net unrealized appreciation (depreciation) | | 1,610,296 |
Net gain (loss) | | 322,432 |
Net increase (decrease) in net assets resulting from operations | | $ 313,133 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended
April 30, 2003
(Unaudited) | Year ended
October 31,
2002 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (9,299) | $ 12,890 |
Net realized gain (loss) | (1,287,864) | (4,196,134) |
Change in net unrealized appreciation (depreciation) | 1,610,296 | 1,907,542 |
Net increase (decrease) in net assets resulting
from operations | 313,133 | (2,275,702) |
Distributions to shareholders from net investment income | (44,256) | - |
Share transactions - net increase (decrease) | (1,695,769) | (3,347,014) |
Total increase (decrease) in net assets | (1,426,892) | (5,622,716) |
| | |
Net Assets | | |
Beginning of period | 18,423,298 | 24,046,014 |
End of period (including accumulated net investment loss of $29,930 and undistributed net investment income of $23,625, respectively) | $ 16,996,406 | $ 18,423,298 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.03 | $ 9.00 | $ 11.13 | $ 10.56 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .01 | .05 | .01 | (.02) | .05 |
Net realized and unrealized gain (loss) | .17 | (1.02) | (2.14) | .62 | .51 |
Total from investment operations | .18 | (.97) | (2.13) | .60 | .56 |
Distributions from net investment income | (.05) | - | - | (.03) | - |
Net asset value, end of period | $ 8.16 | $ 8.03 | $ 9.00 | $ 11.13 | $ 10.56 |
Total Return B, C, D | 2.24% | (10.78)% | (19.14)% | 5.67% | 5.60% |
Ratios to Average Net Assets G | | | | |
Expenses before expense reductions | 3.32% A | 2.57% | 2.16% | 1.97% | 3.52% A |
Expenses net of voluntary waivers, if any | 1.75% A | 1.96% | 2.00% | 1.97% | 2.00% A |
Expenses net of all reductions | 1.67% A | 1.91% | 1.95% | 1.93% | 1.96% A |
Net investment income (loss) | .33% A | .48% | .14% | (.14)% | .56% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 2,056 | $ 2,071 | $ 2,577 | $ 3,501 | $ 2,060 |
Portfolio turnover rate | 233% A | 137% | 85% | 151% | 164% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of sales charges. E Calculated based on average shares outstanding during the period. F For the period December 17, 1998 (commencement of operations) to October 31, 1999. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflects expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 7.98 | $ 8.95 | $ 11.09 | $ 10.54 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | - H | .02 | (.01) | (.05) | .03 |
Net realized and unrealized gain (loss) | .17 | (.99) | (2.13) | .62 | .51 |
Total from investment operations | .17 | (.97) | (2.14) | .57 | .54 |
Distributions from net investment income | (.03) | - | - | (.02) | - |
Net asset value, end of period | $ 8.12 | $ 7.98 | $ 8.95 | $ 11.09 | $ 10.54 |
Total Return B, C, D | 2.13% | (10.84)% | (19.30)% | 5.40% | 5.40% |
Ratios to Average Net Assets G | | | | |
Expenses before expense reductions | 3.55% A | 2.80% | 2.40% | 2.24% | 3.72% A |
Expenses net of voluntary waivers, if any | 2.00% A | 2.20% | 2.25% | 2.24% | 2.25% A |
Expenses net of all reductions | 1.93% A | 2.16% | 2.19% | 2.20% | 2.21% A |
Net investment income (loss) | .07% A | .24% | (.10)% | (.41)% | .31% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 6,735 | $ 7,079 | $ 9,749 | $ 15,505 | $ 12,343 |
Portfolio turnover rate | 233% A | 137% | 85% | 151% | 164% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of sales charges. E Calculated based on average shares outstanding during the period. F For the period December 17, 1998 (commencement of operations) to October 31, 1999. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflects expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H Amount represents less than $.01 per-share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 7.82 | $ 8.82 | $ 10.99 | $ 10.48 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | (.02) | (.02) | (.06) | (.11) | (.02) |
Net realized and unrealized gain (loss) | .16 | (.98) | (2.11) | .62 | .50 |
Total from investment operations | .14 | (1.00) | (2.17) | .51 | .48 |
Net asset value, end of period | $ 7.96 | $ 7.82 | $ 8.82 | $ 10.99 | $ 10.48 |
Total Return B, C, D | 1.79% | (11.34)% | (19.75)% | 4.87% | 4.80% |
Ratios to Average Net Assets G | | | | |
Expenses before expense reductions | 4.08% A | 3.33% | 2.95% | 2.81% | 4.29% A |
Expenses net of voluntary waivers, if any | 2.50% A | 2.70% | 2.75% | 2.75% | 2.75% A |
Expenses net of all reductions | 2.43% A | 2.65% | 2.70% | 2.71% | 2.71% A |
Net investment income (loss) | (.43)% A | (.26)% | (.61)% | (.91)% | (.19)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 4,988 | $ 5,717 | $ 6,507 | $ 8,132 | $ 3,765 |
Portfolio turnover rate | 233% A | 137% | 85% | 151% | 164% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F For the period December 17, 1998 (commencement of operations) to October 31, 1999. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflects expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 7.83 | $ 8.84 | $ 11.01 | $ 10.49 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | (.02) | (.02) | (.06) | (.10) | (.02) |
Net realized and unrealized gain (loss) | .16 | (.99) | (2.11) | .62 | .51 |
Total from investment operations | .14 | (1.01) | (2.17) | .52 | .49 |
Net asset value, end of period | $ 7.97 | $ 7.83 | $ 8.84 | $ 11.01 | $ 10.49 |
Total Return B, C, D | 1.79% | (11.43)% | (19.71)% | 4.96% | 4.90% |
Ratios to Average Net Assets G | | | | |
Expenses before expense reductions | 3.95% A | 3.22% | 2.80% | 2.67% | 4.16% A |
Expenses net of voluntary waivers, if any | 2.50% A | 2.71% | 2.75% | 2.67% | 2.75% A |
Expenses net of all reductions | 2.42% A | 2.66% | 2.70% | 2.63% | 2.71% A |
Net investment income (loss) | (.42)% A | (.27)% | (.61)% | (.84)% | (.19)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 2,676 | $ 2,876 | $ 4,393 | $ 7,117 | $ 3,894 |
Portfolio turnover rate | 233% A | 137% | 85% | 151% | 164% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F For the period December 17, 1998 (commencement of operations) to October 31, 1999. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflects expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 E |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.10 | $ 9.05 | $ 11.16 | $ 10.58 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) D | .02 | .07 | .04 | .02 | .07 |
Net realized and unrealized gain (loss) | .17 | (1.02) | (2.15) | .61 | .51 |
Total from investment operations | .19 | (.95) | (2.11) | .63 | .58 |
Distributions from net investment income | (.07) | - | - | (.05) | - |
Net asset value, end of period | $ 8.22 | $ 8.10 | $ 9.05 | $ 11.16 | $ 10.58 |
Total Return B, C | 2.35% | (10.50)% | (18.91)% | 5.94% | 5.80% |
Ratios to Average Net Assets F | | | | |
Expenses before expense reductions | 2.74% A | 2.07% | 1.75% | 1.70% | 3.31% A |
Expenses net of voluntary waivers, if any | 1.50% A | 1.71% | 1.75% | 1.70% | 1.75% A |
Expenses net of all reductions | 1.43% A | 1.66% | 1.69% | 1.66% | 1.71% A |
Net investment income (loss) | .57% A | .74% | .40% | .14% | .81% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 541 | $ 681 | $ 820 | $ 1,193 | $ 838 |
Portfolio turnover rate | 233% A | 137% | 85% | 151% | 164% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E For the period December 17, 1998 (commencement of operations) to October 31, 1999. F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflects expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2003 (Unaudited)
1. Significant Accounting Policies.
Fidelity Advisor Europe Capital Appreciation Fund (the fund) is a fund of Fidelity Advisor Series VIII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
The fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
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 fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. If an event that is expected to materially affect the value of a security occurs after the close of an exchange or market on which that security trades, but prior to the NAV calculation, then that security will be fair valued taking the event into account. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
1. Significant Accounting Policies - continued
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. 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 fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, which includes amortization of premium and accretion of discount on debt securities, as required, 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.
Income Tax Information and Distributions to Shareholders. Each year the fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. Foreign taxes are provided for based on each fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Income dividends and capital gain distributions are declared separately for each class. 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. Capital accounts within the financial statements are adjusted for permanent and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), capital loss carryforwards and losses deferred due to wash sales.
Semiannual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investments including unrealized appreciation (depreciation) as of period end was as follows:
Unrealized appreciation | $ 1,984,917 |
Unrealized depreciation | (781,839) |
Net unrealized appreciation (depreciation) | $ 1,203,078 |
Cost for federal income tax purposes | $ 15,838,551 |
2. Operating Policies.
Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. The custodian bank receives the collateral, which is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
3. Purchases and Sales of Investments.
Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee.
The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the fund's average net assets and a group fee rate that averaged .28% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .73% of the fund's average net assets.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. Class A and Class T Plans also authorize the use of brokerage commissions to pay distribution expenses. In addition, FDC may pay financial intermediaries for selling shares of the fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, the total amounts paid to and retained by FDC and the amount of distribution expenses paid with brokerage commissions were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC | Paid with
Commissions |
Class A | 0 % | .25% | $ 2,521 | $ 23 | $ - |
Class T | .25% | .25% | 16,778 | 108 | - |
Class B | .75% | .25% | 25,520 | 19,185 | - |
Class C | .75% | .25% | 13,497 | 816 | - |
| | | $ 58,316 | $ 20,132 | $ - |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares of the fund. FDC receives the proceeds of contingent deferred sales charge (CDSC) levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, and .25% for certain purchases of Class A and Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC | |
Class A | $ 1,000 | |
Class T | 936 | |
Class B* | 14,408 | |
Class C* | 109 | |
| $ 16,453 | |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the
sales are made.
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent (collectively referred to as the transfer agent) for each class of the fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the fund. FIIOC pays for typesetting, printing and mailing of all shareholder reports, except proxy statements. For the period, the following amounts were paid to FIIOC:
| Amount | % of
Average
Net Assets |
Class A | $ 5,881 | .58* |
Class T | 19,041 | .57* |
Class B | 15,176 | .59* |
Class C | 6,317 | .47* |
Institutional Class | 691 | .25* |
| $ 47,106 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the 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.
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $7,443 for the period.
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $3.5 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 fund has agreed to pay commitment fees on its pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Security Lending.
The fund lends portfolio securities from time to time in order to earn additional income. The 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 fund and any additional required collateral is delivered to the fund 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. At period end there were no security loans outstanding.
7. Expense Reductions.
FMR agreed to reimburse the classes of the fund to the extent operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, are excluded from this reimbursement.
| Expense
Limitations | Reimbursement
from adviser |
| | |
Class A | 1.75% | $ 15,885 |
Class T | 2.00% | 52,170 |
Class B | 2.50% | 40,254 |
Class C | 2.50% | 19,664 |
Institutional Class | 1.50% | 3,419 |
| | $ 131,392 |
Semiannual Report
7. Expense Reductions - continued
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services may include payments of expenses on behalf of the fund to support distribution of fund shares for Class A and Class T ("Distribution Expense Reduction") and to pay other fund expenses, such as transfer agent fees ("Other Expense Reduction") collectively referred to as "Directed Brokerage" in the accompanying table. Directed brokerage generally benefits all shareholders of each class by reducing fund expenses. Each of Class A and Class T shareholders' Other Expense Reduction benefit is reduced by the amount of any Distribution Expense Reduction.
| Directed Brokerage |
| Distribution
expense
reduction | Other
expense
reduction |
| | |
Fund Level | $ | $ 6,406 |
Class A | - | |
Class T | - | |
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2003 | Year ended
October 31,
2002 |
From net investment income | | |
Class A | $ 12,873 | $ - |
Class T | 26,438 | - |
Institutional Class | 4,945 | - |
Total | $ 44,256 | $ - |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2003 | Year ended
October 31,
2002 | Six months ended April 30,
2003 | Year ended
October 31,
2002 |
Class A | | | | |
Shares sold | 78,054 | 427,176 | $ 591,583 | $ 3,978,076 |
Reinvestment of distributions | 1,448 | - | 11,764 | - |
Shares redeemed | (85,387) | (455,720) | (651,193) | (4,247,881) |
Net increase (decrease) | (5,885) | (28,544) | $ (47,846) | $ (269,805) |
Class T | | | | |
Shares sold | 85,902 | 242,800 | $ 672,486 | $ 2,191,017 |
Reinvestment of distributions | 3,126 | - | 25,256 | - |
Shares redeemed | (146,603) | (444,772) | (1,149,864) | (4,027,999) |
Net increase (decrease) | (57,575) | (201,972) | $ (452,122) | $ (1,836,982) |
Class B | | | | |
Shares sold | 61,893 | 256,719 | $ 471,789 | $ 2,405,037 |
Shares redeemed | (166,913) | (262,795) | (1,280,574) | (2,368,364) |
Net increase (decrease) | (105,020) | (6,076) | $ (808,785) | $ 36,673 |
Class C | | | | |
Shares sold | 10,432 | 101,482 | $ 80,725 | $ 918,375 |
Shares redeemed | (42,239) | (231,210) | (320,102) | (2,099,373) |
Net increase (decrease) | (31,807) | (129,728) | $ (239,377) | $ (1,180,998) |
Institutional Class | | | | |
Shares sold | 15,877 | 622,922 | $ 124,202 | $ 6,154,110 |
Reinvestment of distributions | 320 | - | 2,614 | - |
Shares redeemed | (34,500) | (629,370) | (274,455) | (6,250,012) |
Net increase (decrease) | (18,303) | (6,448) | $ (147,639) | $ (95,902) |
Semiannual Report
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 International
Investment Advisors
Fidelity International Investment Advisors (U.K.) Limited
Fidelity Investments Japan Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agent
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
Semiannual Report
Fidelity Advisor Aggressive Growth Fund |
Fidelity Advisor Asset Allocation Fund |
Fidelity Advisor Balanced Fund |
Fidelity Advisor Biotechnology Fund |
Fidelity Advisor California Municipal Income Fund |
Fidelity Advisor Consumer Industries Fund |
Fidelity Advisor Cyclical Industries Fund |
Fidelity Advisor Developing Communications Fund |
Fidelity Advisor Diversified International Fund |
Fidelity Advisor Dividend Growth Fund |
Fidelity Advisor Dynamic Capital Appreciation Fund |
Fidelity Advisor Electronics Fund |
Fidelity Advisor Emerging Asia Fund |
Fidelity Advisor Emerging Markets Income Fund |
Fidelity Advisor Equity Growth Fund |
Fidelity Advisor Equity Income Fund |
Fidelity Advisor Equity Value Fund |
Fidelity Advisor Europe Capital Appreciation Fund |
Fidelity Advisor Fifty Fund |
Fidelity Advisor Financial Services Fund |
Fidelity Advisor Floating Rate High Income Fund |
Fidelity Advisor Global Equity Fund |
Fidelity Advisor Government Investment Fund |
Fidelity Advisor Growth & Income Fund |
Fidelity Advisor Growth Opportunities |
Fidelity Advisor Health Care Fund |
Fidelity Advisor High Income Advantage Fund |
Fidelity Advisor High Income Fund |
Fidelity Advisor Inflation-Protected Bond Fund |
Fidelity Advisor Intermediate Bond Fund |
Fidelity Advisor International Capital Appreciation Fund |
Fidelity Advisor Investment Grade Bond Fund |
Fidelity Advisor Japan Fund |
Fidelity Advisor Korea Fund |
Fidelity Advisor Large Cap Fund |
Fidelity Advisor Latin America Fund |
Fidelity Advisor Leveraged Company Stock Fund |
Fidelity Advisor Mid Cap Fund |
Fidelity Advisor Mortgage Securities Fund |
Fidelity Advisor Municipal Income Fund |
Fidelity Advisor Natural Resources Fund |
Fidelity Advisor New York Municipal Income Fund |
Fidelity Advisor Overseas Fund |
Fidelity Advisor Real Estate Fund |
Fidelity Advisor Short Fixed-Income Fund |
Fidelity Advisor Small Cap Fund |
Fidelity Advisor Strategic Growth Fund |
Fidelity Advisor Strategic Income Fund |
Fidelity Advisor Tax Managed
Stock Fund |
Fidelity Advisor Technology Fund |
Fidelity Advisor Telecommunications & Utilities Growth Fund |
Fidelity Advisor Value Strategies Fund |
Prime Fund |
Tax-Exempt Fund |
Treasury Fund |
(Fidelity Investment logo)(registered trademark)
AEUR-USAN-0603
1.784875.100
Fidelity® Advisor
Europe Capital Appreciation
Fund - Institutional Class
Semiannual Report
April 30, 2003
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
| | |
| | |
| | |
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.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.
Neither the fund nor Fidelity Distributors Corporation is a bank.
For more information on any Fidelity Advisor fund, including charges and expenses, contact your investment professional for a free prospectus. Read it carefully before you invest or send money.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
This shareholder update and report on the performance of your fund is among the first to be produced under the new Sarbanes-Oxley Public Company Accounting and Investor Protection Act of 2002. This act requires that public companies certify, under penalty of law, the financial information they report to shareholders. It was adopted by Congress in reaction to several incidents of corporate malfeasance that brought the integrity of management of some publicly traded companies into question.
After the act was signed into law, the Securities and Exchange Commission interpreted it as applying to mutual funds as well as public companies. Thus, every mutual fund now is required to certify that the financial information provided in annual and semiannual reports to shareholders fully and fairly presents its financial position.
There is little doubt that the intent of Congress and regulators in this matter is a noble one - to improve the accuracy and accountability of financial reporting to investors by corporate America. We in no way condone any of the activities that brought about these requirements, and we welcome any and every reasonable proposal to strengthen investor protection and information disclosure.
That said, we are proud that mutual funds have always provided full and fair disclosure. Governed by the Investment Company Act of 1940 - and monitored and regulated by federal and state agencies, industry oversight associations, and independent directors - mutual funds are among the most transparent of all financial products. For example, the prices of mutual fund shares are established and published every business day, and the majority of members of the Board of Trustees that oversees our funds are not affiliated with the business of Fidelity. The disclosure standards of mutual funds actually have become models for governance and transparency across corporate America.
We are, of course, complying in full with the letter of this new requirement and hope that any future efforts by Congress to reassure investors about the honesty of corporate America will focus on practical and substantive solutions of genuine value to shareholders.
This sort of careful consideration was evident as Congress deliberated President Bush's tax cut package this spring, then enacted legislation that contains a variety of benefits for American families, investors and businesses. Although the final bill did not completely eliminate the tax that individual investors pay when they receive dividends from companies, it still will benefit American investors, and we applaud it in the spirit of compromise that marked the debate in Congress.
At Fidelity, we are committed to acting at all times in accordance with the highest standards of integrity and in the best interests of our fund shareholders. We are proud of the amount of information we provide to those who invest in our funds and pleased to continue that level of communication with you in these reports.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Investment Changes
Top Five Stocks as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Deutsche Boerse AG (Germany, Diversified Financials) | 6.6 | 5.2 |
Novartis AG (Switzerland, Pharmaceuticals) | 3.9 | 0.0 |
Vodafone Group PLC (United Kingdom, Wireless Telecommunication Services) | 3.6 | 0.0 |
GlaxoSmithKline PLC (United Kingdom, Pharmaceuticals) | 3.4 | 0.0 |
BP PLC sponsored ADR (United Kingdom, Oil & Gas) | 3.2 | 0.0 |
| 20.7 | |
Top Five Market Sectors as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 21.0 | 27.1 |
Consumer Discretionary | 15.7 | 17.6 |
Health Care | 14.3 | 5.3 |
Consumer Staples | 13.0 | 22.8 |
Energy | 12.0 | 7.3 |
Top Five Countries as of April 30, 2003 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United Kingdom | 33.1 | 26.6 |
Germany | 18.5 | 14.8 |
France | 13.2 | 24.7 |
Switzerland | 11.1 | 3.1 |
Spain | 6.6 | 4.7 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2003 | As of October 31, 2002 |
| Stocks 96.9% | | | Stocks 93.1% | |
| Short-Term
Investments and
Net Other Assets 3.1% | | | Short-Term
Investments and
Net Other Assets 6.9% | |
Semiannual Report
Investments April 30, 2003 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.9% |
| Shares | | Value (Note 1) |
Austria - 0.4% |
OMV AG | 600 | | $ 72,191 |
Belgium - 0.5% |
Mobistar SA (a) | 2,500 | | 81,629 |
Denmark - 0.8% |
Novo Nordisk AS Series B | 3,800 | | 137,808 |
Finland - 1.0% |
Nokia Corp. | 10,100 | | 167,357 |
France - 13.2% |
Alcatel SA sponsored ADR | 9,200 | | 74,152 |
Aventis SA | 800 | | 40,272 |
AXA SA sponsored ADR | 6,200 | | 94,178 |
Casino Guichard Perrachon et Compagnie | 1,400 | | 95,494 |
CNP Assurances | 2,000 | | 80,555 |
Credit Agricole SA | 3,900 | | 71,913 |
GrandVision SA | 2,500 | | 46,349 |
L'Air Liquide SA | 400 | | 60,696 |
L'Oreal SA | 2,000 | | 143,241 |
Naf Naf SA (a) | 4,400 | | 88,561 |
NRJ Group | 3,000 | | 46,964 |
Pernod-Ricard | 1,725 | | 151,708 |
Peugeot Citroen SA | 2,000 | | 93,795 |
Renault SA | 3,700 | | 160,322 |
Sanofi-Synthelabo SA | 700 | | 41,837 |
SEB SA | 3,900 | | 366,322 |
Skis Rossignol SA | 3,500 | | 41,094 |
Suez SA | 8,900 | | 145,199 |
TotalFinaElf SA Series B | 2,517 | | 330,734 |
Vivendi Universal SA sponsored ADR | 4,000 | | 65,640 |
TOTAL FRANCE | | 2,239,026 |
Germany - 16.7% |
Adidas-Salomon AG | 1,000 | | 86,213 |
Allianz AG (Reg.) | 1,900 | | 134,592 |
Altana AG | 1,700 | | 83,451 |
BASF AG | 2,400 | | 107,267 |
Bayer AG | 4,600 | | 84,100 |
Deutsche Bank AG | 6,000 | | 309,000 |
Deutsche Boerse AG | 23,708 | | 1,113,433 |
Deutsche Telekom AG (Reg.) | 19,400 | | 259,960 |
E.On AG | 1,400 | | 67,143 |
ESCADA AG | 4,700 | | 38,996 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Germany - continued |
Fresenius Medical Care AG sponsored ADR | 1 | | $ 17 |
Puma AG | 500 | | 48,105 |
SAP AG | 700 | | 71,856 |
Schering AG | 1,800 | | 80,309 |
Sixt AG | 6,300 | | 51,426 |
Suedzucker AG (Bearer) | 2,900 | | 49,225 |
T-Online International AG (a) | 6,600 | | 51,956 |
Zapf Creation AG | 5,400 | | 198,176 |
TOTAL GERMANY | | 2,835,225 |
Italy - 3.1% |
Banca Intesa Spa | 21,781 | | 56,651 |
Banca Nazionale del Lavoro (BNL) (a) | 66,200 | | 107,410 |
Bulgari Spa | 14,700 | | 68,610 |
Saeco International Group | 13,200 | | 50,775 |
Telecom Italia Spa | 22,400 | | 181,574 |
Unicredito Italiano Spa | 13,900 | | 60,960 |
TOTAL ITALY | | 525,980 |
Netherlands - 3.2% |
ING Groep NV (Certificaten Van Aandelen) | 7,830 | | 127,393 |
Koninklijke Philips Electronics NV | 6,200 | | 115,570 |
Koninklijke Philips Electronics NV (NY Shares) | 3,100 | | 57,908 |
Royal Dutch Petroleum Co. (Hague Registry) | 3,300 | | 134,904 |
Samas Groep NV (Certificaten Van Aandelen) | 8,200 | | 29,342 |
Van der Moolen Holding NV sponsored ADR | 6,900 | | 73,140 |
TOTAL NETHERLANDS | | 538,257 |
Russia - 2.0% |
OAO Gazprom sponsored ADR | 2,300 | | 36,225 |
Surgutneftegaz JSC sponsored ADR | 3,300 | | 64,515 |
Vimpel Communications sponsored ADR (a) | 1,800 | | 71,748 |
YUKOS Corp. sponsored ADR | 1,000 | | 175,000 |
TOTAL RUSSIA | | 347,488 |
Spain - 6.6% |
Altadis SA | 11,200 | | 289,301 |
Amadeus Global Travel Distribution SA Series A | 9,900 | | 49,594 |
Banco Espanol de Credito SA (Reg.) | 6,800 | | 55,888 |
Banco Santander Central Hispano SA | 11,960 | | 94,151 |
Corporacion Mapfre SA (Reg.) | 14,500 | | 136,197 |
Grupo Auxiliar Metalurgico SA (Gamesa) (a) | 2,500 | | 51,353 |
Repsol YPF SA | 14,500 | | 211,591 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Spain - continued |
Telefonica SA | 7,800 | | $ 86,435 |
Telefonica SA sponsored ADR | 4,681 | | 155,643 |
TOTAL SPAIN | | 1,130,153 |
Sweden - 1.8% |
Electrolux AB (B Shares) | 3,100 | | 58,354 |
Song Networks Holding AB (a) | 400 | | 1,723 |
Telefonaktiebolaget LM Ericsson (B Shares) (a) | 215,800 | | 195,515 |
TeliaSonera AB | 14,200 | | 50,673 |
TOTAL SWEDEN | | 306,265 |
Switzerland - 11.1% |
Actelion Ltd. (Reg.) (a) | 2,241 | | 143,703 |
Barry Callebaut AG | 550 | | 78,374 |
Centerpulse AG (Reg.) (a) | 250 | | 54,729 |
Credit Suisse Group sponsored ADR | 6,000 | | 143,400 |
Leica Geosystems AG (a) | 260 | | 21,884 |
Nestle SA (Reg.) | 1,569 | | 320,310 |
Novartis AG: | | | |
(Reg.) | 2,800 | | 110,602 |
sponsored ADR | 13,900 | | 548,772 |
Roche Holding AG (participation certificate) | 1,520 | | 96,852 |
Saurer AG (Reg.) (a) | 2,400 | | 62,817 |
Sulzer AG (Reg.) | 450 | | 55,569 |
UBS AG (NY Shares) | 4,000 | | 189,800 |
Zurich Financial Services AG | 500 | | 52,791 |
TOTAL SWITZERLAND | | 1,879,603 |
Turkey - 0.0% |
Turkcell Iletisim Hizmet AS sponsored ADR (a) | 100 | | 1,495 |
United Kingdom - 33.1% |
3i Group PLC | 20,800 | | 154,781 |
Alliance & Leicester PLC | 5,100 | | 66,190 |
AstraZeneca PLC sponsored ADR | 6,100 | | 243,207 |
Autonomy Corp. PLC (a) | 16,300 | | 42,258 |
Avis Europe PLC | 6,000 | | 8,234 |
Barratt Developments PLC | 10,700 | | 71,575 |
Berkeley Group PLC | 4,200 | | 42,008 |
Boots Group PLC | 14,700 | | 134,677 |
BP PLC sponsored ADR | 14,300 | | 551,122 |
BPB PLC | 9,100 | | 45,144 |
British Sky Broadcasting Group PLC (BSkyB) (a) | 14,000 | | 145,291 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
United Kingdom - continued |
BT Group PLC | 40,300 | | $ 117,152 |
Carlton Communications PLC | 50,700 | | 85,192 |
Cattles PLC | 8,100 | | 41,026 |
Celltech Group PLC (a) | 7,400 | | 30,257 |
Corin Group PLC | 1,300 | | 2,827 |
Debenhams PLC | 7,800 | | 40,568 |
Diageo PLC | 9,200 | | 102,176 |
GlaxoSmithKline PLC | 28,200 | | 571,332 |
HBOS PLC | 14,200 | | 166,569 |
Lloyds TSB Group PLC | 14,600 | | 96,144 |
London Stock Exchange PLC | 10,700 | | 55,650 |
Maiden Group PLC | 15,500 | | 49,237 |
Medisys PLC (a) | 49,000 | | 10,782 |
MyTravel Group PLC | 150,700 | | 26,528 |
NDS Group PLC sponsored ADR (a) | 2,700 | | 34,695 |
Next PLC | 6,800 | | 102,672 |
Northgate PLC | 16,600 | | 110,510 |
Prudential PLC | 13,500 | | 82,744 |
Reckitt Benckiser PLC | 6,000 | | 105,956 |
Redrow PLC Class L | 9,200 | | 37,985 |
Rio Tinto PLC sponsored ADR | 900 | | 69,030 |
Shell Transport & Trading Co. PLC (Reg.) | 82,300 | | 495,034 |
SMG PLC | 29,600 | | 37,185 |
Somerfield PLC | 36,200 | | 55,179 |
Spirent PLC | 213,100 | | 71,615 |
SurfControl PLC (a) | 2,500 | | 20,136 |
Sygen International PLC | 91,118 | | 64,159 |
Tesco PLC | 48,800 | | 154,627 |
Trinity Mirror PLC | 11,600 | | 80,937 |
Unilever PLC | 47,200 | | 463,386 |
Vodafone Group PLC | 299,500 | | 591,813 |
Vodafone Group PLC sponsored ADR | 1,300 | | 25,688 |
Wilson Connolly Holdings PLC | 8,200 | | 22,767 |
Woolworths Group PLC | 67,300 | | 37,695 |
Wyevale Garden Centres PLC | 11,800 | | 65,904 |
TOTAL UNITED KINGDOM | | 5,629,644 |
United States of America - 0.4% |
Synthes-Stratec, Inc. | 113 | | 71,334 |
TOTAL COMMON STOCKS (Cost $14,599,482) | 15,963,455 |
Nonconvertible Preferred Stocks - 3.0% |
| Shares | | Value (Note 1) |
Germany - 1.8% |
Fresenius Medical Care AG | 2,700 | | $ 96,311 |
Hugo Boss AG | 2,700 | | 37,437 |
Porsche AG (non-vtg.) | 450 | | 166,053 |
TOTAL GERMANY | | 299,801 |
Italy - 1.2% |
Telecom Italia Spa Risp (non-vtg.) | 42,000 | | 206,268 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $472,217) | 506,069 |
Money Market Funds - 3.1% |
| | | |
Fidelity Cash Central Fund, 1.29% (b)
(Cost $527,105) | 527,105 | | 527,105 |
Cash Equivalents - 0.3% |
| Maturity Amount | | |
Investments in repurchase agreements (Collateralized by U.S. Treasury Obligations, in a joint trading account at 1.27%, dated 4/30/03 due 5/1/03)
(Cost $45,000) | $ 45,002 | | 45,000 |
TOTAL INVESTMENT PORTFOLIO - 100.3% (Cost $15,643,804) | | 17,041,629 |
NET OTHER ASSETS - (0.3)% | | (45,223) |
NET ASSETS - 100% | $ 16,996,406 |
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 $18,591,183 and $19,590,423, respectively. |
Income Tax Information |
At October 31, 2002, the fund had a capital loss carryforward of approximately $7,829,000 of which $635,000, $2,918,000 and $4,276,000 will expire on October 31, 2007, 2009 and 2010, respectively. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| April 30, 2003 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including repurchase agreements of $45,000) (cost $15,643,804) - See accompanying schedule | | $ 17,041,629 |
Cash | | 682 |
Receivable for investments sold | | 246,826 |
Receivable for fund shares sold | | 2,410 |
Dividends receivable | | 115,812 |
Interest receivable | | 582 |
Receivable from investment adviser for expense reductions | | 23,675 |
Other receivables | | 747 |
Total assets | | 17,432,363 |
| | |
Liabilities | | |
Payable for investments purchased | $ 316,226 | |
Payable for fund shares redeemed | 56,797 | |
Accrued management fee | 9,992 | |
Distribution fees payable | 9,213 | |
Other payables and accrued expenses | 43,729 | |
Total liabilities | | 435,957 |
| | |
Net Assets | | $ 16,996,406 |
Net Assets consist of: | | |
Paid in capital | | $ 25,018,819 |
Accumulated net investment loss | | (29,930) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (9,398,619) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 1,406,136 |
Net Assets | | $ 16,996,406 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| April 30, 2003 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share ($2,056,404 ÷ 251,971 shares) | | $ 8.16 |
| | |
Maximum offering price per share (100/94.25 of $8.16) | | $ 8.66 |
Class T:
Net Asset Value and redemption price per share ($6,734,875 ÷ 829,678 shares) | | $ 8.12 |
| | |
Maximum offering price per share (100/96.50 of $8.12) | | $ 8.41 |
Class B:
Net Asset Value and offering price per share ($4,987,777 ÷ 626,294 shares) A | | $ 7.96 |
| | |
Class C:
Net Asset Value and offering price per share ($2,676,460 ÷ 335,623 shares) A | | $ 7.97 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($540,890 ÷ 65,782 shares) | | $ 8.22 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
| Six months ended April 30, 2003 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 190,222 |
Interest | | 7,443 |
Security lending | | 406 |
| | 198,071 |
Less foreign taxes withheld | | (27,223) |
Total income | | 170,848 |
| | |
Expenses | | |
Management fee | $ 62,772 | |
Transfer agent fees | 47,106 | |
Distribution fees | 58,316 | |
Accounting and security lending fees | 30,059 | |
Non-interested trustees' compensation | 35 | |
Custodian fees and expenses | 55,989 | |
Registration fees | 44,374 | |
Audit | 18,558 | |
Legal | 688 | |
Miscellaneous | 48 | |
Total expenses before reductions | 317,945 | |
Expense reductions | (137,798) | 180,147 |
Net investment income (loss) | | (9,299) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities | (1,290,312) | |
Foreign currency transactions | 2,448 | |
Total net realized gain (loss) | | (1,287,864) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 1,605,127 | |
Assets and liabilities in foreign currencies | 5,169 | |
Total change in net unrealized appreciation (depreciation) | | 1,610,296 |
Net gain (loss) | | 322,432 |
Net increase (decrease) in net assets resulting from operations | | $ 313,133 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended
April 30, 2003
(Unaudited) | Year ended
October 31,
2002 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (9,299) | $ 12,890 |
Net realized gain (loss) | (1,287,864) | (4,196,134) |
Change in net unrealized appreciation (depreciation) | 1,610,296 | 1,907,542 |
Net increase (decrease) in net assets resulting
from operations | 313,133 | (2,275,702) |
Distributions to shareholders from net investment income | (44,256) | - |
Share transactions - net increase (decrease) | (1,695,769) | (3,347,014) |
Total increase (decrease) in net assets | (1,426,892) | (5,622,716) |
| | |
Net Assets | | |
Beginning of period | 18,423,298 | 24,046,014 |
End of period (including accumulated net investment loss of $29,930 and undistributed net investment income of $23,625, respectively) | $ 16,996,406 | $ 18,423,298 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.03 | $ 9.00 | $ 11.13 | $ 10.56 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .01 | .05 | .01 | (.02) | .05 |
Net realized and unrealized gain (loss) | .17 | (1.02) | (2.14) | .62 | .51 |
Total from investment operations | .18 | (.97) | (2.13) | .60 | .56 |
Distributions from net investment income | (.05) | - | - | (.03) | - |
Net asset value, end of period | $ 8.16 | $ 8.03 | $ 9.00 | $ 11.13 | $ 10.56 |
Total Return B, C, D | 2.24% | (10.78)% | (19.14)% | 5.67% | 5.60% |
Ratios to Average Net Assets G | | | | |
Expenses before expense reductions | 3.32% A | 2.57% | 2.16% | 1.97% | 3.52% A |
Expenses net of voluntary waivers, if any | 1.75% A | 1.96% | 2.00% | 1.97% | 2.00% A |
Expenses net of all reductions | 1.67% A | 1.91% | 1.95% | 1.93% | 1.96% A |
Net investment income (loss) | .33% A | .48% | .14% | (.14)% | .56% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 2,056 | $ 2,071 | $ 2,577 | $ 3,501 | $ 2,060 |
Portfolio turnover rate | 233% A | 137% | 85% | 151% | 164% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of sales charges. E Calculated based on average shares outstanding during the period. F For the period December 17, 1998 (commencement of operations) to October 31, 1999. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflects expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 7.98 | $ 8.95 | $ 11.09 | $ 10.54 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | - H | .02 | (.01) | (.05) | .03 |
Net realized and unrealized gain (loss) | .17 | (.99) | (2.13) | .62 | .51 |
Total from investment operations | .17 | (.97) | (2.14) | .57 | .54 |
Distributions from net investment income | (.03) | - | - | (.02) | - |
Net asset value, end of period | $ 8.12 | $ 7.98 | $ 8.95 | $ 11.09 | $ 10.54 |
Total Return B, C, D | 2.13% | (10.84)% | (19.30)% | 5.40% | 5.40% |
Ratios to Average Net Assets G | | | | |
Expenses before expense reductions | 3.55% A | 2.80% | 2.40% | 2.24% | 3.72% A |
Expenses net of voluntary waivers, if any | 2.00% A | 2.20% | 2.25% | 2.24% | 2.25% A |
Expenses net of all reductions | 1.93% A | 2.16% | 2.19% | 2.20% | 2.21% A |
Net investment income (loss) | .07% A | .24% | (.10)% | (.41)% | .31% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 6,735 | $ 7,079 | $ 9,749 | $ 15,505 | $ 12,343 |
Portfolio turnover rate | 233% A | 137% | 85% | 151% | 164% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of sales charges. E Calculated based on average shares outstanding during the period. F For the period December 17, 1998 (commencement of operations) to October 31, 1999. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflects expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H Amount represents less than $.01 per-share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 7.82 | $ 8.82 | $ 10.99 | $ 10.48 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | (.02) | (.02) | (.06) | (.11) | (.02) |
Net realized and unrealized gain (loss) | .16 | (.98) | (2.11) | .62 | .50 |
Total from investment operations | .14 | (1.00) | (2.17) | .51 | .48 |
Net asset value, end of period | $ 7.96 | $ 7.82 | $ 8.82 | $ 10.99 | $ 10.48 |
Total Return B, C, D | 1.79% | (11.34)% | (19.75)% | 4.87% | 4.80% |
Ratios to Average Net Assets G | | | | |
Expenses before expense reductions | 4.08% A | 3.33% | 2.95% | 2.81% | 4.29% A |
Expenses net of voluntary waivers, if any | 2.50% A | 2.70% | 2.75% | 2.75% | 2.75% A |
Expenses net of all reductions | 2.43% A | 2.65% | 2.70% | 2.71% | 2.71% A |
Net investment income (loss) | (.43)% A | (.26)% | (.61)% | (.91)% | (.19)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 4,988 | $ 5,717 | $ 6,507 | $ 8,132 | $ 3,765 |
Portfolio turnover rate | 233% A | 137% | 85% | 151% | 164% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F For the period December 17, 1998 (commencement of operations) to October 31, 1999. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflects expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 7.83 | $ 8.84 | $ 11.01 | $ 10.49 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | (.02) | (.02) | (.06) | (.10) | (.02) |
Net realized and unrealized gain (loss) | .16 | (.99) | (2.11) | .62 | .51 |
Total from investment operations | .14 | (1.01) | (2.17) | .52 | .49 |
Net asset value, end of period | $ 7.97 | $ 7.83 | $ 8.84 | $ 11.01 | $ 10.49 |
Total Return B, C, D | 1.79% | (11.43)% | (19.71)% | 4.96% | 4.90% |
Ratios to Average Net Assets G | | | | |
Expenses before expense reductions | 3.95% A | 3.22% | 2.80% | 2.67% | 4.16% A |
Expenses net of voluntary waivers, if any | 2.50% A | 2.71% | 2.75% | 2.67% | 2.75% A |
Expenses net of all reductions | 2.42% A | 2.66% | 2.70% | 2.63% | 2.71% A |
Net investment income (loss) | (.42)% A | (.27)% | (.61)% | (.84)% | (.19)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 2,676 | $ 2,876 | $ 4,393 | $ 7,117 | $ 3,894 |
Portfolio turnover rate | 233% A | 137% | 85% | 151% | 164% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F For the period December 17, 1998 (commencement of operations) to October 31, 1999. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflects expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 E |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.10 | $ 9.05 | $ 11.16 | $ 10.58 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) D | .02 | .07 | .04 | .02 | .07 |
Net realized and unrealized gain (loss) | .17 | (1.02) | (2.15) | .61 | .51 |
Total from investment operations | .19 | (.95) | (2.11) | .63 | .58 |
Distributions from net investment income | (.07) | - | - | (.05) | - |
Net asset value, end of period | $ 8.22 | $ 8.10 | $ 9.05 | $ 11.16 | $ 10.58 |
Total Return B, C | 2.35% | (10.50)% | (18.91)% | 5.94% | 5.80% |
Ratios to Average Net Assets F | | | | |
Expenses before expense reductions | 2.74% A | 2.07% | 1.75% | 1.70% | 3.31% A |
Expenses net of voluntary waivers, if any | 1.50% A | 1.71% | 1.75% | 1.70% | 1.75% A |
Expenses net of all reductions | 1.43% A | 1.66% | 1.69% | 1.66% | 1.71% A |
Net investment income (loss) | .57% A | .74% | .40% | .14% | .81% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 541 | $ 681 | $ 820 | $ 1,193 | $ 838 |
Portfolio turnover rate | 233% A | 137% | 85% | 151% | 164% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E For the period December 17, 1998 (commencement of operations) to October 31, 1999. F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflects expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2003 (Unaudited)
1. Significant Accounting Policies.
Fidelity Advisor Europe Capital Appreciation Fund (the fund) is a fund of Fidelity Advisor Series VIII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
The fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
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 fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. If an event that is expected to materially affect the value of a security occurs after the close of an exchange or market on which that security trades, but prior to the NAV calculation, then that security will be fair valued taking the event into account. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
1. Significant Accounting Policies - continued
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. 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 fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, which includes amortization of premium and accretion of discount on debt securities, as required, 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.
Income Tax Information and Distributions to Shareholders. Each year the fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. Foreign taxes are provided for based on each fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Income dividends and capital gain distributions are declared separately for each class. 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. Capital accounts within the financial statements are adjusted for permanent and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), capital loss carryforwards and losses deferred due to wash sales.
Semiannual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investments including unrealized appreciation (depreciation) as of period end was as follows:
Unrealized appreciation | $ 1,984,917 |
Unrealized depreciation | (781,839) |
Net unrealized appreciation (depreciation) | $ 1,203,078 |
Cost for federal income tax purposes | $ 15,838,551 |
2. Operating Policies.
Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. The custodian bank receives the collateral, which is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
3. Purchases and Sales of Investments.
Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee.
The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the fund's average net assets and a group fee rate that averaged .28% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .73% of the fund's average net assets.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. Class A and Class T Plans also authorize the use of brokerage commissions to pay distribution expenses. In addition, FDC may pay financial intermediaries for selling shares of the fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, the total amounts paid to and retained by FDC and the amount of distribution expenses paid with brokerage commissions were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC | Paid with
Commissions |
Class A | 0 % | .25% | $ 2,521 | $ 23 | $ - |
Class T | .25% | .25% | 16,778 | 108 | - |
Class B | .75% | .25% | 25,520 | 19,185 | - |
Class C | .75% | .25% | 13,497 | 816 | - |
| | | $ 58,316 | $ 20,132 | $ - |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares of the fund. FDC receives the proceeds of contingent deferred sales charge (CDSC) levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, and .25% for certain purchases of Class A and Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC | |
Class A | $ 1,000 | |
Class T | 936 | |
Class B* | 14,408 | |
Class C* | 109 | |
| $ 16,453 | |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the
sales are made.
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent (collectively referred to as the transfer agent) for each class of the fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the fund. FIIOC pays for typesetting, printing and mailing of all shareholder reports, except proxy statements. For the period, the following amounts were paid to FIIOC:
| Amount | % of
Average
Net Assets |
Class A | $ 5,881 | .58* |
Class T | 19,041 | .57* |
Class B | 15,176 | .59* |
Class C | 6,317 | .47* |
Institutional Class | 691 | .25* |
| $ 47,106 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the 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.
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $7,443 for the period.
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $3.5 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 fund has agreed to pay commitment fees on its pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Security Lending.
The fund lends portfolio securities from time to time in order to earn additional income. The 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 fund and any additional required collateral is delivered to the fund 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. At period end there were no security loans outstanding.
7. Expense Reductions.
FMR agreed to reimburse the classes of the fund to the extent operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, are excluded from this reimbursement.
| Expense
Limitations | Reimbursement
from adviser |
| | |
Class A | 1.75% | $ 15,885 |
Class T | 2.00% | 52,170 |
Class B | 2.50% | 40,254 |
Class C | 2.50% | 19,664 |
Institutional Class | 1.50% | 3,419 |
| | $ 131,392 |
Semiannual Report
7. Expense Reductions - continued
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services may include payments of expenses on behalf of the fund to support distribution of fund shares for Class A and Class T ("Distribution Expense Reduction") and to pay other fund expenses, such as transfer agent fees ("Other Expense Reduction") collectively referred to as "Directed Brokerage" in the accompanying table. Directed brokerage generally benefits all shareholders of each class by reducing fund expenses. Each of Class A and Class T shareholders' Other Expense Reduction benefit is reduced by the amount of any Distribution Expense Reduction.
| Directed Brokerage |
| Distribution
expense
reduction | Other
expense
reduction |
| | |
Fund Level | $ | $ 6,406 |
Class A | - | |
Class T | - | |
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2003 | Year ended
October 31,
2002 |
From net investment income | | |
Class A | $ 12,873 | $ - |
Class T | 26,438 | - |
Institutional Class | 4,945 | - |
Total | $ 44,256 | $ - |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2003 | Year ended
October 31,
2002 | Six months ended April 30,
2003 | Year ended
October 31,
2002 |
Class A | | | | |
Shares sold | 78,054 | 427,176 | $ 591,583 | $ 3,978,076 |
Reinvestment of distributions | 1,448 | - | 11,764 | - |
Shares redeemed | (85,387) | (455,720) | (651,193) | (4,247,881) |
Net increase (decrease) | (5,885) | (28,544) | $ (47,846) | $ (269,805) |
Class T | | | | |
Shares sold | 85,902 | 242,800 | $ 672,486 | $ 2,191,017 |
Reinvestment of distributions | 3,126 | - | 25,256 | - |
Shares redeemed | (146,603) | (444,772) | (1,149,864) | (4,027,999) |
Net increase (decrease) | (57,575) | (201,972) | $ (452,122) | $ (1,836,982) |
Class B | | | | |
Shares sold | 61,893 | 256,719 | $ 471,789 | $ 2,405,037 |
Shares redeemed | (166,913) | (262,795) | (1,280,574) | (2,368,364) |
Net increase (decrease) | (105,020) | (6,076) | $ (808,785) | $ 36,673 |
Class C | | | | |
Shares sold | 10,432 | 101,482 | $ 80,725 | $ 918,375 |
Shares redeemed | (42,239) | (231,210) | (320,102) | (2,099,373) |
Net increase (decrease) | (31,807) | (129,728) | $ (239,377) | $ (1,180,998) |
Institutional Class | | | | |
Shares sold | 15,877 | 622,922 | $ 124,202 | $ 6,154,110 |
Reinvestment of distributions | 320 | - | 2,614 | - |
Shares redeemed | (34,500) | (629,370) | (274,455) | (6,250,012) |
Net increase (decrease) | (18,303) | (6,448) | $ (147,639) | $ (95,902) |
Semiannual Report
Semiannual Report
Semiannual Report
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 International
Investment Advisors
Fidelity International Investment Advisors (U.K.) Limited
Fidelity Investments Japan Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agent
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
Semiannual Report
Fidelity Advisor Aggressive Growth Fund |
Fidelity Advisor Asset Allocation Fund |
Fidelity Advisor Balanced Fund |
Fidelity Advisor Biotechnology Fund |
Fidelity Advisor California Municipal Income Fund |
Fidelity Advisor Consumer Industries Fund |
Fidelity Advisor Cyclical Industries Fund |
Fidelity Advisor Developing Communications Fund |
Fidelity Advisor Diversified International Fund |
Fidelity Advisor Dividend Growth Fund |
Fidelity Advisor Dynamic Capital Appreciation Fund |
Fidelity Advisor Electronics Fund |
Fidelity Advisor Emerging Asia Fund |
Fidelity Advisor Emerging Markets Income Fund |
Fidelity Advisor Equity Growth Fund |
Fidelity Advisor Equity Income Fund |
Fidelity Advisor Equity Value Fund |
Fidelity Advisor Europe Capital Appreciation Fund |
Fidelity Advisor Fifty Fund |
Fidelity Advisor Financial Services Fund |
Fidelity Advisor Floating Rate High Income Fund |
Fidelity Advisor Global Equity Fund |
Fidelity Advisor Government Investment Fund |
Fidelity Advisor Growth & Income Fund |
Fidelity Advisor Growth Opportunities |
Fidelity Advisor Health Care Fund |
Fidelity Advisor High Income Advantage Fund |
Fidelity Advisor High Income Fund |
Fidelity Advisor Inflation-Protected Bond Fund |
Fidelity Advisor Intermediate Bond Fund |
Fidelity Advisor International Capital Appreciation Fund |
Fidelity Advisor Investment Grade Bond Fund |
Fidelity Advisor Japan Fund |
Fidelity Advisor Korea Fund |
Fidelity Advisor Large Cap Fund |
Fidelity Advisor Latin America Fund |
Fidelity Advisor Leveraged Company Stock Fund |
Fidelity Advisor Mid Cap Fund |
Fidelity Advisor Mortgage Securities Fund |
Fidelity Advisor Municipal Income Fund |
Fidelity Advisor Natural Resources Fund |
Fidelity Advisor New York Municipal Income Fund |
Fidelity Advisor Overseas Fund |
Fidelity Advisor Real Estate Fund |
Fidelity Advisor Short Fixed-Income Fund |
Fidelity Advisor Small Cap Fund |
Fidelity Advisor Strategic Growth Fund |
Fidelity Advisor Strategic Income Fund |
Fidelity Advisor Tax Managed
Stock Fund |
Fidelity Advisor Technology Fund |
Fidelity Advisor Telecommunications & Utilities Growth Fund |
Fidelity Advisor Value Strategies Fund |
Prime Fund |
Tax-Exempt Fund |
Treasury Fund |
(Fidelity Investment logo)(registered trademark)
AEURI-USAN-0603
1.784876.100
Fidelity® Advisor
International
Capital Appreciation
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2003
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
| | |
| | |
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.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.
Neither the fund nor Fidelity Distributors Corporation is a bank.
For more information on any Fidelity Advisor fund, including charges and expenses, contact your investment professional for a free prospectus. Read it carefully before you invest or send money.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
This shareholder update and report on the performance of your fund is among the first to be produced under the new Sarbanes-Oxley Public Company Accounting and Investor Protection Act of 2002. This act requires that public companies certify, under penalty of law, the financial information they report to shareholders. It was adopted by Congress in reaction to several incidents of corporate malfeasance that brought the integrity of management of some publicly traded companies into question.
After the act was signed into law, the Securities and Exchange Commission interpreted it as applying to mutual funds as well as public companies. Thus, every mutual fund now is required to certify that the financial information provided in annual and semiannual reports to shareholders fully and fairly presents its financial position.
There is little doubt that the intent of Congress and regulators in this matter is a noble one - to improve the accuracy and accountability of financial reporting to investors by corporate America. We in no way condone any of the activities that brought about these requirements, and we welcome any and every reasonable proposal to strengthen investor protection and information disclosure.
That said, we are proud that mutual funds have always provided full and fair disclosure. Governed by the Investment Company Act of 1940 - and monitored and regulated by federal and state agencies, industry oversight associations, and independent directors - mutual funds are among the most transparent of all financial products. For example, the prices of mutual fund shares are established and published every business day, and the majority of members of the Board of Trustees that oversees our funds are not affiliated with the business of Fidelity. The disclosure standards of mutual funds actually have become models for governance and transparency across corporate America.
We are, of course, complying in full with the letter of this new requirement and hope that any future efforts by Congress to reassure investors about the honesty of corporate America will focus on practical and substantive solutions of genuine value to shareholders.
This sort of careful consideration was evident as Congress deliberated President Bush's tax cut package this spring, then enacted legislation that contains a variety of benefits for American families, investors and businesses. Although the final bill did not completely eliminate the tax that individual investors pay when they receive dividends from companies, it still will benefit American investors, and we applaud it in the spirit of compromise that marked the debate in Congress.
At Fidelity, we are committed to acting at all times in accordance with the highest standards of integrity and in the best interests of our fund shareholders. We are proud of the amount of information we provide to those who invest in our funds and pleased to continue that level of communication with you in these reports.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Investment Changes
Top Five Stocks as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
ASML Holding Nv (NY Shares) (Netherlands, Semiconductor Equipment & Products) | 4.6 | 6.1 |
Deutsche Telekom AG (Reg.) (Germany, Diversified Telecommunication Services) | 3.9 | 0.0 |
Altadis SA (Spain, Tobacco) | 3.0 | 4.7 |
Deutsche Boerse AG (Germany, Diversified Financials) | 2.9 | 2.5 |
Julius Baer Holding AG (Bearer) (Switzerland, Diversified Financials) | 2.7 | 1.6 |
| 17.1 | |
Top Five Market Sectors as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 20.5 | 22.2 |
Health Care | 18.9 | 6.2 |
Information Technology | 17.5 | 19.9 |
Consumer Discretionary | 14.2 | 16.8 |
Consumer Staples | 8.3 | 12.6 |
Top Five Countries as of April 30, 2003 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
Germany | 13.3 | 5.1 |
Netherlands | 11.4 | 11.7 |
Switzerland | 11.2 | 10.9 |
Japan | 10.5 | 6.7 |
France | 10.5 | 14.5 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2003 | As of October 31, 2002 |
| Stocks 94.6% | | | Stocks 91.3% | |
| Short-Term
Investments and
Net Other Assets 5.4% | | | Short-Term
Investments and
Net Other Assets 8.7% | |
Semiannual Report
Investments April 30, 2003 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 94.6% |
| Shares | | Value (Note 1) |
Brazil - 4.4% |
Aracruz Celulose SA sponsored ADR | 194,800 | | $ 4,090,800 |
Banco Itau Holding Financeira SA (PN) | 45,616,000 | | 3,024,352 |
Telesp Celular Participacoes SA ADR (a) | 539,100 | | 2,075,535 |
TOTAL BRAZIL | | 9,190,687 |
Canada - 2.1% |
Precision Drilling Corp. (a) | 52,700 | | 1,803,969 |
Talisman Energy, Inc. | 67,000 | | 2,674,859 |
TOTAL CANADA | | 4,478,828 |
Denmark - 0.6% |
Coloplast AS Series B | 15,800 | | 1,169,754 |
France - 10.5% |
BNP Paribas SA | 102,700 | | 4,830,134 |
Dassault Systemes SA | 79,700 | | 2,307,331 |
L'Air Liquide SA | 27,300 | | 4,142,495 |
NRJ Group | 212,100 | | 3,320,383 |
Pernod-Ricard | 37,375 | | 3,286,998 |
Television Francaise 1 SA | 146,300 | | 4,117,627 |
TOTAL FRANCE | | 22,004,968 |
Germany - 13.3% |
Deutsche Boerse AG | 131,206 | | 6,162,011 |
Deutsche Telekom AG (Reg.) | 613,400 | | 8,219,557 |
Fresenius Medical Care AG | 89,300 | | 4,490,491 |
Infineon Technologies AG (a) | 588,600 | | 4,376,847 |
SAP AG | 23,000 | | 2,360,967 |
Stada Arzneimittel AG | 44,367 | | 2,326,764 |
TOTAL GERMANY | | 27,936,637 |
Hong Kong - 2.3% |
Esprit Holdings Ltd. | 891,500 | | 1,748,902 |
Hong Kong Exchanges & Clearing Ltd. | 2,696,000 | | 3,145,676 |
TOTAL HONG KONG | | 4,894,578 |
India - 2.6% |
Dr. Reddy's Laboratories Ltd. | 172,200 | | 3,178,895 |
Ranbaxy Laboratories Ltd. | 151,500 | | 2,161,084 |
TOTAL INDIA | | 5,339,979 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Italy - 1.6% |
Bulgari Spa | 432,500 | | $ 2,018,636 |
Unicredito Italiano Spa | 281,400 | | 1,234,102 |
TOTAL ITALY | | 3,252,738 |
Japan - 10.5% |
Canon, Inc. | 93,500 | | 3,750,285 |
JAFCO Co. Ltd. | 53,400 | | 1,935,775 |
Konica Corp. | 255,000 | | 2,339,922 |
Nikko Cordial Corp. | 1,055,000 | | 2,839,480 |
Nintendo Co. Ltd. | 17,400 | | 1,363,960 |
Nomura Holdings, Inc. | 557,000 | | 5,532,756 |
Rohm Co. Ltd. | 22,200 | | 2,294,781 |
Tokyo Electron Ltd. | 52,200 | | 1,962,522 |
TOTAL JAPAN | | 22,019,481 |
Mexico - 2.7% |
TV Azteca SA de CV sponsored ADR | 979,000 | | 5,678,200 |
Netherlands - 11.4% |
ASM International NV (a) | 325,900 | | 4,456,873 |
ASML Holding Nv (NY Shares) (a) | 1,102,100 | | 9,709,501 |
Hunter Douglas NV | 44,000 | | 1,289,061 |
Koninklijke Ahold NV | 479,000 | | 2,196,033 |
Unilever NV (NY Shares) | 54,000 | | 3,400,380 |
VNU NV | 97,800 | | 2,843,359 |
TOTAL NETHERLANDS | | 23,895,207 |
Spain - 7.5% |
Altadis SA | 242,700 | | 6,269,043 |
Amadeus Global Travel Distribution SA Series A | 640,300 | | 3,207,606 |
Banco Popular Espanol SA (Reg.) | 55,200 | | 2,681,318 |
Banco Santander Central Hispano SA | 309,300 | | 2,434,849 |
Telefonica Moviles SA (a) | 168,000 | | 1,217,317 |
TOTAL SPAIN | | 15,810,133 |
Sweden - 2.7% |
Telefonaktiebolaget LM Ericsson (B Shares) (a) | 6,240,800 | | 5,654,167 |
Switzerland - 11.2% |
Actelion Ltd. (Reg.) (a) | 56,789 | | 3,641,557 |
Centerpulse AG (Reg.) (a) | 7,050 | | 1,543,359 |
Julius Baer Holding AG (Bearer) | 27,100 | | 5,702,525 |
Novartis AG (Reg.) | 96,990 | | 3,831,191 |
Roche Holding AG (participation certificate) | 29,840 | | 1,901,353 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Switzerland - continued |
Serono SA Series B | 5,756 | | $ 3,127,891 |
Swiss Reinsurance Co. (Reg.) | 56,860 | | 3,719,578 |
TOTAL SWITZERLAND | | 23,467,454 |
Turkey - 1.0% |
Turkcell Iletisim Hizmet AS sponsored ADR (a) | 138,200 | | 2,066,090 |
United Kingdom - 7.9% |
AstraZeneca PLC | 68,500 | | 2,731,095 |
British American Tobacco PLC | 221,600 | | 2,127,759 |
EMAP PLC | 209,800 | | 2,696,016 |
Kingfisher PLC | 608,478 | | 2,380,812 |
Shire Pharmaceuticals Group PLC (a) | 683,300 | | 4,395,810 |
Vodafone Group PLC | 1,112,300 | | 2,197,908 |
TOTAL UNITED KINGDOM | | 16,529,400 |
United States of America - 2.3% |
Synthes-Stratec, Inc. | 7,648 | | 4,827,998 |
TOTAL COMMON STOCKS (Cost $183,476,360) | 198,216,299 |
Money Market Funds - 16.8% |
| | | |
Fidelity Cash Central Fund, 1.29% (b) | 8,206,298 | | 8,206,298 |
Fidelity Securities Lending Cash Central Fund, 1.3% (b) | 27,010,123 | | 27,010,123 |
TOTAL MONEY MARKET FUNDS (Cost $35,216,421) | 35,216,421 |
Cash Equivalents - 0.0% |
| Maturity Amount | | |
Investments in repurchase agreements (Collateralized by U.S. Treasury Obligations, in a joint trading account at 1.27%, dated 4/30/03 due 5/1/03)
(Cost $36,000) | $ 36,001 | | 36,000 |
TOTAL INVESTMENT PORTFOLIO - 111.4% (Cost $218,728,781) | | 233,468,720 |
NET OTHER ASSETS - (11.4)% | | (23,854,074) |
NET ASSETS - 100% | $ 209,614,646 |
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 $184,053,281 and $175,267,715, respectively. |
The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $134 for the period. |
Income Tax Information |
At October 31, 2002, the fund had a capital loss carryforward of approximately $102,603,000 of which $23,647,000, $66,722,000 and $12,234,000 will expire on October 31, 2007, 2009 and 2010, respectively. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| April 30, 2003 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $25,356,586 and repurchase agreements of $36,000) (cost $218,728,781) - See accompanying schedule | | $ 233,468,720 |
Cash | | 783 |
Foreign currency held at value (cost $6,053,572) | | 5,712,703 |
Receivable for investments sold | | 1,807,455 |
Receivable for fund shares sold | | 347,805 |
Dividends receivable | | 338,172 |
Interest receivable | | 8,328 |
Receivable from investment adviser for expense reductions | | 1,690 |
Other receivables | | 5,518 |
Total assets | | 241,691,174 |
| | |
Liabilities | | |
Payable for investments purchased | $ 4,221,296 | |
Payable for fund shares redeemed | 542,079 | |
Accrued management fee | 121,258 | |
Distribution fees payable | 105,327 | |
Other payables and accrued expenses | 76,445 | |
Collateral on securities loaned, at value | 27,010,123 | |
Total liabilities | | 32,076,528 |
| | |
Net Assets | | $ 209,614,646 |
Net Assets consist of: | | |
Paid in capital | | $ 310,630,889 |
Accumulated net investment loss | | (648,628) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (114,788,936) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 14,421,321 |
Net Assets | | $ 209,614,646 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| April 30, 2003 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share ($19,093,378 ÷ 1,687,308 shares) | | $ 11.32 |
| | |
Maximum offering price per share (100/94.25 of $11.32) | | $ 12.01 |
Class T:
Net Asset Value and redemption price per share ($106,334,919 ÷ 9,447,377 shares) | | $ 11.26 |
| | |
Maximum offering price per share (100/96.50 of $11.26) | | $ 11.67 |
Class B:
Net Asset Value and offering price per share ($36,697,310 ÷ 3,353,003 shares) A | | $ 10.94 |
| | |
Class C:
Net Asset Value and offering price per share ($39,165,124 ÷ 3,575,258 shares) A | | $ 10.95 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($8,323,915 ÷ 724,576 shares) | | $ 11.49 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
| Six months ended April 30, 2003 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 1,306,841 |
Interest | | 152,597 |
Security lending | | 39,997 |
| | 1,499,435 |
Less foreign taxes withheld | | (129,062) |
Total income | | 1,370,373 |
| | |
Expenses | | |
Management fee | $ 742,244 | |
Transfer agent fees | 493,186 | |
Distribution fees | 639,918 | |
Accounting and security lending fees | 62,063 | |
Non-interested trustees' compensation | 409 | |
Custodian fees and expenses | 54,786 | |
Registration fees | 41,917 | |
Audit | 22,388 | |
Legal | 6,902 | |
Miscellaneous | 760 | |
Total expenses before reductions | 2,064,573 | |
Expense reductions | (45,572) | 2,019,001 |
Net investment income (loss) | | (648,628) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities | (11,429,565) | |
Foreign currency transactions | (84,911) | |
Total net realized gain (loss) | | (11,514,476) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 18,251,795 | |
Assets and liabilities in foreign currencies | (20,027) | |
Total change in net unrealized appreciation (depreciation) | | 18,231,768 |
Net gain (loss) | | 6,717,292 |
Net increase (decrease) in net assets resulting from operations | | $ 6,068,664 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended
April 30, 2003
(Unaudited) | Year ended
October 31,
2002 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (648,628) | $ (812,361) |
Net realized gain (loss) | (11,514,476) | (11,502,014) |
Change in net unrealized appreciation (depreciation) | 18,231,768 | 5,664,330 |
Net increase (decrease) in net assets resulting
from operations | 6,068,664 | (6,650,045) |
Share transactions - net increase (decrease) | 3,446,987 | 29,718,211 |
Total increase (decrease) in net assets | 9,515,651 | 23,068,166 |
| | |
Net Assets | | |
Beginning of period | 200,098,995 | 177,030,829 |
End of period (including accumulated net investment loss of $648,628 and accumulated net investment income of $0, respectively) | $ 209,614,646 | $ 200,098,995 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 | 1998 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.93 | $ 11.08 | $ 15.26 | $ 15.06 | $ 10.07 | $ 10.00 |
Income from Invest-
ment Operations | | | | | | |
Net investment income (loss) E | (.02) | - H | (.01) | (.03) | (.01) | - H |
Net realized and unrealized gain (loss) | .41 | (.15) | (3.73) | .88 | 5.00 | .07 |
Total from invest-
ment operations | .39 | (.15) | (3.74) | .85 | 4.99 | .07 |
Distributions from net investment income | - | - | (.44) | - | - | - |
Distributions in excess of net investment income | - | - | - | (.02) | - | - |
Distributions from net realized gain | - | - | - | (.63) | - | - |
Total distributions | - | - | (.44) | (.65) | - | - |
Net asset value, end of period | $ 11.32 | $ 10.93 | $ 11.08 | $ 15.26 | $ 15.06 | $ 10.07 |
Total Return B, C, D | 3.57% | (1.35)% | (25.17)% | 5.31% | 49.55% | .70% |
Ratios to Average Net Assets G | | | | | |
Expenses before expense reductions | 1.68% A | 1.67% | 1.71% | 1.55% | 2.13% | 6.48% A |
Expenses net of voluntary waivers, if any | 1.68% A | 1.67% | 1.70% | 1.55% | 1.72% | 2.06% A |
Expenses net of all reductions | 1.64% A | 1.57% | 1.57% | 1.50% | 1.67% | 2.06% A |
Net investment income (loss) | (.28)% A | (.02)% | (.05)% | (.16)% | (.06)% | .03% A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 19,093 | $ 16,879 | $ 12,070 | $ 15,348 | $ 3,407 | $ 860 |
Portfolio turnover rate | 197% A | 193% | 270% | 308% | 218% | 199% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F For the period November 3, 1997 (commencement of operations) to October 31, 1998. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 | 1998 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.88 | $ 11.05 | $ 15.21 | $ 15.02 | $ 10.04 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | (.03) | (.03) | (.06) | (.04) | (.03) |
Net realized and unrealized gain (loss) | .41 | (.14) | (3.73) | .88 | 5.02 | .07 |
Total from investment operations | .38 | (.17) | (3.76) | .82 | 4.98 | .04 |
Distributions from net investment income | - | - | (.40) | - | - | - |
Distributions in excess of net investment income | - | - | - | (.01) | - | - |
Distributions from net realized gain | - | - | - | (.62) | - | - |
Total distributions | - | - | (.40) | (.63) | - | - |
Net asset value, end of period | $ 11.26 | $ 10.88 | $ 11.05 | $ 15.21 | $ 15.02 | $ 10.04 |
Total Return B, C, D | 3.49% | (1.54)% | (25.32)% | 5.13% | 49.60% | .40% |
Ratios to Average Net Assets G | | | | | |
Expenses before expense reductions | 1.90% A | 1.86% | 1.87% | 1.72% | 2.29% | 3.98% A |
Expenses net of voluntary waivers, if any | 1.90% A | 1.86% | 1.87% | 1.72% | 1.97% | 2.31% A |
Expenses net of all reductions | 1.86% A | 1.76% | 1.73% | 1.67% | 1.92% | 2.31% A |
Net investment income (loss) | (.50)% A | (.21)% | (.22)% | (.33)% | (.31)% | (.24)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 106,335 | $ 98,148 | $ 88,818 | $ 145,721 | $ 44,233 | $ 12,117 |
Portfolio turnover rate | 197% A | 193% | 270% | 308% | 218% | 199% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F For the period November 3, 1997 (commencement of operations) to October 31, 1998. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 | 1998 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.61 | $ 10.84 | $ 14.96 | $ 14.82 | $ 9.99 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.05) | (.09) | (.10) | (.16) | (.10) | (.07) |
Net realized and unrealized gain (loss) | .38 | (.14) | (3.67) | .89 | 4.93 | .06 |
Total from investment operations | .33 | (.23) | (3.77) | .73 | 4.83 | (.01) |
Distributions from net investment income | - | - | (.35) | - | - | - |
Distributions in excess of net investment income | - | - | - | (.01) | - | - |
Distributions from net realized gain | - | - | - | (.58) | - | - |
Total distributions | - | - | (.35) | (.59) | - | - |
Net asset value, end of period | $ 10.94 | $ 10.61 | $ 10.84 | $ 14.96 | $ 14.82 | $ 9.99 |
Total Return B, C, D | 3.11% | (2.12)% | (25.75)% | 4.60% | 48.35% | (.10)% |
Ratios to Average Net Assets G | | | | | |
Expenses before expense reductions | 2.48% A | 2.44% | 2.47% | 2.30% | 2.82% | 4.97% A |
Expenses net of voluntary waivers, if any | 2.45% A | 2.44% | 2.45% | 2.30% | 2.47% | 2.81% A |
Expenses net of all reductions | 2.41% A | 2.34% | 2.32% | 2.26% | 2.42% | 2.81% A |
Net investment income (loss) | (1.05)% A | (.79)% | (.80)% | (.92)% | (.81)% | (.70)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 36,697 | $ 36,981 | $ 36,593 | $ 49,140 | $ 11,098 | $ 4,047 |
Portfolio turnover rate | 197% A | 193% | 270% | 308% | 218% | 199% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charges. E Calculated based on average shares outstanding during the period. F For the period November 3, 1997 (commencement of operations) to October 31, 1998. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 | 1998 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.62 | $ 10.83 | $ 14.96 | $ 14.83 | $ 9.98 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.05) | (.08) | (.09) | (.15) | (.10) | (.08) |
Net realized and unrealized gain (loss) | .38 | (.13) | (3.67) | .88 | 4.95 | .06 |
Total from investment operations | .33 | (.21) | (3.76) | .73 | 4.85 | (.02) |
Distributions from net investment income | - | - | (.37) | - | - | - |
Distributions in excess of net investment income | - | - | - | (.01) | - | - |
Distributions from net realized gain | - | - | - | (.59) | - | - |
Total distributions | - | - | (.37) | (.60) | - | - |
Net asset value, end of period | $ 10.95 | $ 10.62 | $ 10.83 | $ 14.96 | $ 14.83 | $ 9.98 |
Total Return B, C, D | 3.11% | (1.94)% | (25.71)% | 4.59% | 48.60% | (.20)% |
Ratios to Average Net Assets G | | | | | |
Expenses before expense reductions | 2.39% A | 2.34% | 2.38% | 2.25% | 2.82% | 5.44% A |
Expenses net of voluntary waivers, if any | 2.39% A | 2.34% | 2.38% | 2.25% | 2.47% | 2.81% A |
Expenses net of all reductions | 2.35% A | 2.24% | 2.24% | 2.21% | 2.42% | 2.81% A |
Net investment income (loss) | (.99)% A | (.69)% | (.73)% | (.86)% | (.81)% | (.75)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 39,165 | $ 37,514 | $ 33,118 | $ 44,041 | $ 7,874 | $ 2,217 |
Portfolio turnover rate | 197% A | 193% | 270% | 308% | 218% | 199% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charges. E Calculated based on average shares outstanding during the period. F For the period November 3, 1997 (commencement of operations) to October 31, 1998. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 | 1998 E |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.08 | $ 11.17 | $ 15.35 | $ 15.09 | $ 10.09 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | - G | .06 | .06 | .04 | .02 | .04 |
Net realized and unrealized gain (loss) | .41 | (.15) | (3.75) | .88 | 4.98 | .05 |
Total from investment operations | .41 | (.09) | (3.69) | .92 | 5.00 | .09 |
Distributions from net investment income | - | - | (.49) | - | - | - |
Distributions in excess of net investment income | - | - | - | (.03) | - | - |
Distributions from net realized gain | - | - | - | (.63) | - | - |
Total distributions | - | - | (.49) | (.66) | - | - |
Net asset value, end of period | $ 11.49 | $ 11.08 | $ 11.17 | $ 15.35 | $ 15.09 | $ 10.09 |
Total Return B, C | 3.70% | (.81)% | (24.75)% | 5.78% | 49.55% | .90% |
Ratios to Average Net Assets F | | | | | |
Expenses before expense reductions | 1.40% A | 1.15% | 1.19% | 1.15% | 1.70% | 3.49% A |
Expenses net of voluntary waivers, if any | 1.40% A | 1.15% | 1.19% | 1.15% | 1.47% | 1.81% A |
Expenses net of all reductions | 1.36% A | 1.06% | 1.05% | 1.10% | 1.42% | 1.81% A |
Net investment income (loss) | -% A | .50% | .46% | .24% | .19% | .34% A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 8,324 | $ 10,577 | $ 6,432 | $ 9,551 | $ 7,099 | $ 4,682 |
Portfolio turnover rate | 197% A | 193% | 270% | 308% | 218% | 199% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E For the period November 3, 1997 (commencement of operations) to October 31, 1998. F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. G Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2003 (Unaudited)
1. Significant Accounting Policies.
Fidelity Advisor International Capital Appreciation Fund (the fund) is a fund of Fidelity Advisor Series VIII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
The fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
The fund's 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 fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. If an event that is expected to materially affect the value of a security occurs after the close of an exchange or market on which that security trades, but prior to the NAV calculation, then that security will be fair valued taking the event into account. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
1. Significant Accounting Policies - continued
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. 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 fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, which includes amortization of premium and accretion of discount on debt securities, as required, 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.
Income Tax Information and Distributions to Shareholders. Each year the fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. Foreign taxes are provided for based on each fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Income dividends and capital gain distributions are declared separately for each class. 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. Capital accounts within the financial statements are adjusted for permanent and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), net operating losses, capital loss carryforwards and losses deferred due to wash sales.
Semiannual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investments including unrealized appreciation (depreciation) as of period end was as follows:
Unrealized appreciation | $ 23,663,849 | | |
Unrealized depreciation | (9,629,128) | |
Net unrealized appreciation (depreciation) | $ 14,034,721 | |
Cost for federal income tax purposes | $ 219,433,999 | |
2. Operating Policies.
Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. The custodian bank receives the collateral, which is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
3. Purchases and Sales of Investments.
Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee.
The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the fund's average net assets and a group fee rate that averaged .28% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .73% of the fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class'
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
average net assets. Class A and Class T Plans also authorize the use of brokerage commissions to pay distribution expenses. In addition, FDC may pay financial intermediaries for selling shares of the fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, the total amounts paid to and retained by FDC and the amount of distribution expenses paid with brokerage commissions were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC | Paid with
Commissions |
Class A | 0% | .25% | $ 23,273 | $ 76 | $ 431 |
Class T | .25% | .25% | 253,823 | 5,407 | 2,387 |
Class B | .75% | .25% | 177,810 | 133,719 | - |
Class C | .75% | .25% | 185,012 | 42,176 | - |
| | | $ 639,918 | $ 181,378 | $ 2,818 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares of the fund. FDC receives the proceeds of contingent deferred sales charge (CDSC) levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, and .25% for certain purchases of Class A and Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC | |
Class A | $ 5,949 | |
Class T | 6,211 | |
Class B* | 64,893 | |
Class C* | 3,007 | |
| $ 80,060 | |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent (collectively referred to as the transfer agent) for each class of the fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the fund. FIIOC pays for
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
typesetting, printing and mailing of all shareholder reports, except proxy statements. For the period, the following amounts were paid to FIIOC:
| Amount | % of Average
Net Assets |
Class A | $ 45,906 | .50* |
Class T | 236,936 | .47* |
Class B | 98,886 | .56* |
Class C | 86,208 | .47* |
Institutional Class | 25,250 | .48* |
| $ 493,186 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the 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.
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $152,556 for the period.
Brokerage Commissions. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms are shown under the caption "Other Information" at the end of the fund's Schedule of Investments.
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $3.5 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 fund has agreed to pay commitment fees on its pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Security Lending.
The fund lends portfolio securities from time to time in order to earn additional income. The 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 fund and any additional required collateral is delivered to the fund 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 the fund's Statement of Assets and Liabilities.
7. Expense Reductions.
FMR agreed to reimburse the classes of the fund to the extent operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, are excluded from this reimbursement.
| Expense
Limitations | Reimbursement
from adviser |
| | |
Class B | 2.45% | $ 4,790 |
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services may include payments of expenses on behalf of the fund to support distribution of fund shares for Class A and Class T ("Distribution Expense Reduction") and to pay other fund expenses, such as transfer agent fees ("Other Expense Reduction") collectively referred to as "Directed Brokerage" in the accompanying table. Directed brokerage generally benefits all shareholders of each class by reducing fund expenses. Each of Class A and Class T shareholders' Other Expense Reduction benefit is reduced by the amount of any Distribution Expense Reduction. In addition, through arrangements with the fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. All of the applicable expense reductions are noted in the table below.
| Directed Brokerage | |
| Distribution
expense reduction | Other
expense reduction | Custody
expense reduction |
Fund Level | $ | $ 37,777 | $ 187 |
Class A | 431 | - | - |
Class T | 2,387 | - | - |
| $ 2,818 | $ 37,777 | $ 187 |
Semiannual Report
8. Other Information.
At the end of the period, one unaffiliated shareholder was the owner of record of 13% of the total outstanding shares of the fund.
9. Share Transactions
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2003 | Year ended
October 31,
2002 | Six months ended April 30,
2003 | Year ended
October 31,
2002 |
Class A | | | | |
Shares sold | 2,203,300 | 3,695,180 | $ 23,229,189 | $ 45,047,908 |
Shares redeemed | (2,059,975) | (3,240,498) | (21,657,961) | (39,441,245) |
Net increase (decrease) |
143,325
|
454,682
|
$ 1,571,228
|
$ 5,606,663
|
Class T | | | | |
Shares sold | 2,494,181 | 7,972,427 | $ 26,714,623 | $ 98,947,323 |
Shares redeemed | (2,065,549) | (6,989,312) | (21,722,249) | (86,656,988) |
Net increase (decrease) |
428,632
|
983,115
|
$ 4,992,374
|
$ 12,290,335
|
Class B | | | | |
Shares sold | 310,841 | 1,073,501 | $ 3,231,774 | $ 13,249,979 |
Shares redeemed | (442,730) | (964,258) | (4,540,526) | (11,540,142) |
Net increase (decrease) |
(131,889)
|
109,243
|
$ (1,308,752)
|
$ 1,709,837
|
Class C | | | | |
Shares sold | 485,001 | 2,256,558 | $ 5,050,315 | $ 27,408,888 |
Shares redeemed | (442,852) | (1,780,095) | (4,547,241) | (21,555,315) |
Net increase (decrease) |
42,149
|
476,463
|
$ 503,074
|
$ 5,853,573
|
Institutional Class | | | | |
Shares sold | 420,185 | 1,939,247 | $ 4,550,796 | $ 24,872,811 |
Shares redeemed | (650,481) | (1,560,448) | (6,861,733) | (20,615,008) |
Net increase (decrease) |
(230,296)
|
378,799
|
$ (2,310,937)
|
$ 4,257,803
|
Semiannual Report
Semiannual Report
Semiannual Report
Semiannual Report
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 International Investment Advisors
Fidelity International Investment Advisors (U.K.) Limited
Fidelity Investments Japan Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
Semiannual Report
Fidelity Advisor Aggressive Growth Fund |
Fidelity Advisor Asset Allocation Fund |
Fidelity Advisor Balanced Fund |
Fidelity Advisor Biotechnology Fund |
Fidelity Advisor California Municipal Income Fund |
Fidelity Advisor Consumer Industries Fund |
Fidelity Advisor Cyclical Industries Fund |
Fidelity Advisor Developing Communications Fund |
Fidelity Advisor Diversified International Fund |
Fidelity Advisor Dividend Growth Fund |
Fidelity Advisor Dynamic Capital Appreciation Fund |
Fidelity Advisor Electronics Fund |
Fidelity Advisor Emerging Asia Fund |
Fidelity Advisor Emerging Markets Income Fund |
Fidelity Advisor Equity Growth Fund |
Fidelity Advisor Equity Income Fund |
Fidelity Advisor Equity Value Fund |
Fidelity Advisor Europe Capital Appreciation Fund |
Fidelity Advisor Fifty Fund |
Fidelity Advisor Financial Services Fund |
Fidelity Advisor Floating Rate High Income Fund |
Fidelity Advisor Global Equity Fund |
Fidelity Advisor Government Investment Fund |
Fidelity Advisor Growth & Income Fund |
Fidelity Advisor Growth Opportunities |
Fidelity Advisor Health Care Fund |
Fidelity Advisor High Income Advantage Fund |
Fidelity Advisor High Income Fund |
Fidelity Advisor Inflation-Protected Bond Fund |
Fidelity Advisor Intermediate Bond Fund |
Fidelity Advisor International Capital Appreciation Fund |
Fidelity Advisor Investment Grade Bond Fund |
Fidelity Advisor Japan Fund |
Fidelity Advisor Korea Fund |
Fidelity Advisor Large Cap Fund |
Fidelity Advisor Latin America Fund |
Fidelity Advisor Leveraged Company Stock Fund |
Fidelity Advisor Mid Cap Fund |
Fidelity Advisor Mortgage Securities Fund |
Fidelity Advisor Municipal Income Fund |
Fidelity Advisor Natural Resources Fund |
Fidelity Advisor New York Municipal Income Fund |
Fidelity Advisor Overseas Fund |
Fidelity Advisor Real Estate Fund |
Fidelity Advisor Short Fixed-Income Fund |
Fidelity Advisor Small Cap Fund |
Fidelity Advisor Strategic Growth Fund |
Fidelity Advisor Strategic Income Fund |
Fidelity Advisor Tax Managed
Stock Fund |
Fidelity Advisor Technology Fund |
Fidelity Advisor Telecommunications & Utilities Growth Fund |
Fidelity Advisor Value Strategies Fund |
Prime Fund |
Tax-Exempt Fund |
Treasury Fund |
(Fidelity Investment logo)(registered trademark)
AICAP-USAN-0603
1.784890.100
Fidelity® Advisor
International
Capital Appreciation
Fund - Institutional Class
Semiannual Report
April 30, 2003
(2 Fidelity Logos)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
| | |
| | |
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.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.
Neither the fund nor Fidelity Distributors Corporation is a bank.
For more information on any Fidelity Advisor fund, including charges and expenses, contact your investment professional for a free prospectus. Read it carefully before you invest or send money.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
This shareholder update and report on the performance of your fund is among the first to be produced under the new Sarbanes-Oxley Public Company Accounting and Investor Protection Act of 2002. This act requires that public companies certify, under penalty of law, the financial information they report to shareholders. It was adopted by Congress in reaction to several incidents of corporate malfeasance that brought the integrity of management of some publicly traded companies into question.
After the act was signed into law, the Securities and Exchange Commission interpreted it as applying to mutual funds as well as public companies. Thus, every mutual fund now is required to certify that the financial information provided in annual and semiannual reports to shareholders fully and fairly presents its financial position.
There is little doubt that the intent of Congress and regulators in this matter is a noble one - to improve the accuracy and accountability of financial reporting to investors by corporate America. We in no way condone any of the activities that brought about these requirements, and we welcome any and every reasonable proposal to strengthen investor protection and information disclosure.
That said, we are proud that mutual funds have always provided full and fair disclosure. Governed by the Investment Company Act of 1940 - and monitored and regulated by federal and state agencies, industry oversight associations, and independent directors - mutual funds are among the most transparent of all financial products. For example, the prices of mutual fund shares are established and published every business day, and the majority of members of the Board of Trustees that oversees our funds are not affiliated with the business of Fidelity. The disclosure standards of mutual funds actually have become models for governance and transparency across corporate America.
We are, of course, complying in full with the letter of this new requirement and hope that any future efforts by Congress to reassure investors about the honesty of corporate America will focus on practical and substantive solutions of genuine value to shareholders.
This sort of careful consideration was evident as Congress deliberated President Bush's tax cut package this spring, then enacted legislation that contains a variety of benefits for American families, investors and businesses. Although the final bill did not completely eliminate the tax that individual investors pay when they receive dividends from companies, it still will benefit American investors, and we applaud it in the spirit of compromise that marked the debate in Congress.
At Fidelity, we are committed to acting at all times in accordance with the highest standards of integrity and in the best interests of our fund shareholders. We are proud of the amount of information we provide to those who invest in our funds and pleased to continue that level of communication with you in these reports.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Investment Changes
Top Five Stocks as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
ASML Holding Nv (NY Shares) (Netherlands, Semiconductor Equipment & Products) | 4.6 | 6.1 |
Deutsche Telekom AG (Reg.) (Germany, Diversified Telecommunication Services) | 3.9 | 0.0 |
Altadis SA (Spain, Tobacco) | 3.0 | 4.7 |
Deutsche Boerse AG (Germany, Diversified Financials) | 2.9 | 2.5 |
Julius Baer Holding AG (Bearer) (Switzerland, Diversified Financials) | 2.7 | 1.6 |
| 17.1 | |
Top Five Market Sectors as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 20.5 | 22.2 |
Health Care | 18.9 | 6.2 |
Information Technology | 17.5 | 19.9 |
Consumer Discretionary | 14.2 | 16.8 |
Consumer Staples | 8.3 | 12.6 |
Top Five Countries as of April 30, 2003 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
Germany | 13.3 | 5.1 |
Netherlands | 11.4 | 11.7 |
Switzerland | 11.2 | 10.9 |
Japan | 10.5 | 6.7 |
France | 10.5 | 14.5 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2003 | As of October 31, 2002 |
| Stocks 94.6% | | | Stocks 91.3% | |
| Short-Term
Investments and
Net Other Assets 5.4% | | | Short-Term
Investments and
Net Other Assets 8.7% | |
Semiannual Report
Investments April 30, 2003 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 94.6% |
| Shares | | Value (Note 1) |
Brazil - 4.4% |
Aracruz Celulose SA sponsored ADR | 194,800 | | $ 4,090,800 |
Banco Itau Holding Financeira SA (PN) | 45,616,000 | | 3,024,352 |
Telesp Celular Participacoes SA ADR (a) | 539,100 | | 2,075,535 |
TOTAL BRAZIL | | 9,190,687 |
Canada - 2.1% |
Precision Drilling Corp. (a) | 52,700 | | 1,803,969 |
Talisman Energy, Inc. | 67,000 | | 2,674,859 |
TOTAL CANADA | | 4,478,828 |
Denmark - 0.6% |
Coloplast AS Series B | 15,800 | | 1,169,754 |
France - 10.5% |
BNP Paribas SA | 102,700 | | 4,830,134 |
Dassault Systemes SA | 79,700 | | 2,307,331 |
L'Air Liquide SA | 27,300 | | 4,142,495 |
NRJ Group | 212,100 | | 3,320,383 |
Pernod-Ricard | 37,375 | | 3,286,998 |
Television Francaise 1 SA | 146,300 | | 4,117,627 |
TOTAL FRANCE | | 22,004,968 |
Germany - 13.3% |
Deutsche Boerse AG | 131,206 | | 6,162,011 |
Deutsche Telekom AG (Reg.) | 613,400 | | 8,219,557 |
Fresenius Medical Care AG | 89,300 | | 4,490,491 |
Infineon Technologies AG (a) | 588,600 | | 4,376,847 |
SAP AG | 23,000 | | 2,360,967 |
Stada Arzneimittel AG | 44,367 | | 2,326,764 |
TOTAL GERMANY | | 27,936,637 |
Hong Kong - 2.3% |
Esprit Holdings Ltd. | 891,500 | | 1,748,902 |
Hong Kong Exchanges & Clearing Ltd. | 2,696,000 | | 3,145,676 |
TOTAL HONG KONG | | 4,894,578 |
India - 2.6% |
Dr. Reddy's Laboratories Ltd. | 172,200 | | 3,178,895 |
Ranbaxy Laboratories Ltd. | 151,500 | | 2,161,084 |
TOTAL INDIA | | 5,339,979 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Italy - 1.6% |
Bulgari Spa | 432,500 | | $ 2,018,636 |
Unicredito Italiano Spa | 281,400 | | 1,234,102 |
TOTAL ITALY | | 3,252,738 |
Japan - 10.5% |
Canon, Inc. | 93,500 | | 3,750,285 |
JAFCO Co. Ltd. | 53,400 | | 1,935,775 |
Konica Corp. | 255,000 | | 2,339,922 |
Nikko Cordial Corp. | 1,055,000 | | 2,839,480 |
Nintendo Co. Ltd. | 17,400 | | 1,363,960 |
Nomura Holdings, Inc. | 557,000 | | 5,532,756 |
Rohm Co. Ltd. | 22,200 | | 2,294,781 |
Tokyo Electron Ltd. | 52,200 | | 1,962,522 |
TOTAL JAPAN | | 22,019,481 |
Mexico - 2.7% |
TV Azteca SA de CV sponsored ADR | 979,000 | | 5,678,200 |
Netherlands - 11.4% |
ASM International NV (a) | 325,900 | | 4,456,873 |
ASML Holding Nv (NY Shares) (a) | 1,102,100 | | 9,709,501 |
Hunter Douglas NV | 44,000 | | 1,289,061 |
Koninklijke Ahold NV | 479,000 | | 2,196,033 |
Unilever NV (NY Shares) | 54,000 | | 3,400,380 |
VNU NV | 97,800 | | 2,843,359 |
TOTAL NETHERLANDS | | 23,895,207 |
Spain - 7.5% |
Altadis SA | 242,700 | | 6,269,043 |
Amadeus Global Travel Distribution SA Series A | 640,300 | | 3,207,606 |
Banco Popular Espanol SA (Reg.) | 55,200 | | 2,681,318 |
Banco Santander Central Hispano SA | 309,300 | | 2,434,849 |
Telefonica Moviles SA (a) | 168,000 | | 1,217,317 |
TOTAL SPAIN | | 15,810,133 |
Sweden - 2.7% |
Telefonaktiebolaget LM Ericsson (B Shares) (a) | 6,240,800 | | 5,654,167 |
Switzerland - 11.2% |
Actelion Ltd. (Reg.) (a) | 56,789 | | 3,641,557 |
Centerpulse AG (Reg.) (a) | 7,050 | | 1,543,359 |
Julius Baer Holding AG (Bearer) | 27,100 | | 5,702,525 |
Novartis AG (Reg.) | 96,990 | | 3,831,191 |
Roche Holding AG (participation certificate) | 29,840 | | 1,901,353 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Switzerland - continued |
Serono SA Series B | 5,756 | | $ 3,127,891 |
Swiss Reinsurance Co. (Reg.) | 56,860 | | 3,719,578 |
TOTAL SWITZERLAND | | 23,467,454 |
Turkey - 1.0% |
Turkcell Iletisim Hizmet AS sponsored ADR (a) | 138,200 | | 2,066,090 |
United Kingdom - 7.9% |
AstraZeneca PLC | 68,500 | | 2,731,095 |
British American Tobacco PLC | 221,600 | | 2,127,759 |
EMAP PLC | 209,800 | | 2,696,016 |
Kingfisher PLC | 608,478 | | 2,380,812 |
Shire Pharmaceuticals Group PLC (a) | 683,300 | | 4,395,810 |
Vodafone Group PLC | 1,112,300 | | 2,197,908 |
TOTAL UNITED KINGDOM | | 16,529,400 |
United States of America - 2.3% |
Synthes-Stratec, Inc. | 7,648 | | 4,827,998 |
TOTAL COMMON STOCKS (Cost $183,476,360) | 198,216,299 |
Money Market Funds - 16.8% |
| | | |
Fidelity Cash Central Fund, 1.29% (b) | 8,206,298 | | 8,206,298 |
Fidelity Securities Lending Cash Central Fund, 1.3% (b) | 27,010,123 | | 27,010,123 |
TOTAL MONEY MARKET FUNDS (Cost $35,216,421) | 35,216,421 |
Cash Equivalents - 0.0% |
| Maturity Amount | | |
Investments in repurchase agreements (Collateralized by U.S. Treasury Obligations, in a joint trading account at 1.27%, dated 4/30/03 due 5/1/03)
(Cost $36,000) | $ 36,001 | | 36,000 |
TOTAL INVESTMENT PORTFOLIO - 111.4% (Cost $218,728,781) | | 233,468,720 |
NET OTHER ASSETS - (11.4)% | | (23,854,074) |
NET ASSETS - 100% | $ 209,614,646 |
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 $184,053,281 and $175,267,715, respectively. |
The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $134 for the period. |
Income Tax Information |
At October 31, 2002, the fund had a capital loss carryforward of approximately $102,603,000 of which $23,647,000, $66,722,000 and $12,234,000 will expire on October 31, 2007, 2009 and 2010, respectively. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| April 30, 2003 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $25,356,586 and repurchase agreements of $36,000) (cost $218,728,781) - See accompanying schedule | | $ 233,468,720 |
Cash | | 783 |
Foreign currency held at value (cost $6,053,572) | | 5,712,703 |
Receivable for investments sold | | 1,807,455 |
Receivable for fund shares sold | | 347,805 |
Dividends receivable | | 338,172 |
Interest receivable | | 8,328 |
Receivable from investment adviser for expense reductions | | 1,690 |
Other receivables | | 5,518 |
Total assets | | 241,691,174 |
| | |
Liabilities | | |
Payable for investments purchased | $ 4,221,296 | |
Payable for fund shares redeemed | 542,079 | |
Accrued management fee | 121,258 | |
Distribution fees payable | 105,327 | |
Other payables and accrued expenses | 76,445 | |
Collateral on securities loaned, at value | 27,010,123 | |
Total liabilities | | 32,076,528 |
| | |
Net Assets | | $ 209,614,646 |
Net Assets consist of: | | |
Paid in capital | | $ 310,630,889 |
Accumulated net investment loss | | (648,628) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (114,788,936) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 14,421,321 |
Net Assets | | $ 209,614,646 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| April 30, 2003 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share ($19,093,378 ÷ 1,687,308 shares) | | $ 11.32 |
| | |
Maximum offering price per share (100/94.25 of $11.32) | | $ 12.01 |
Class T:
Net Asset Value and redemption price per share ($106,334,919 ÷ 9,447,377 shares) | | $ 11.26 |
| | |
Maximum offering price per share (100/96.50 of $11.26) | | $ 11.67 |
Class B:
Net Asset Value and offering price per share ($36,697,310 ÷ 3,353,003 shares) A | | $ 10.94 |
| | |
Class C:
Net Asset Value and offering price per share ($39,165,124 ÷ 3,575,258 shares) A | | $ 10.95 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($8,323,915 ÷ 724,576 shares) | | $ 11.49 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
| Six months ended April 30, 2003 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 1,306,841 |
Interest | | 152,597 |
Security lending | | 39,997 |
| | 1,499,435 |
Less foreign taxes withheld | | (129,062) |
Total income | | 1,370,373 |
| | |
Expenses | | |
Management fee | $ 742,244 | |
Transfer agent fees | 493,186 | |
Distribution fees | 639,918 | |
Accounting and security lending fees | 62,063 | |
Non-interested trustees' compensation | 409 | |
Custodian fees and expenses | 54,786 | |
Registration fees | 41,917 | |
Audit | 22,388 | |
Legal | 6,902 | |
Miscellaneous | 760 | |
Total expenses before reductions | 2,064,573 | |
Expense reductions | (45,572) | 2,019,001 |
Net investment income (loss) | | (648,628) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities | (11,429,565) | |
Foreign currency transactions | (84,911) | |
Total net realized gain (loss) | | (11,514,476) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 18,251,795 | |
Assets and liabilities in foreign currencies | (20,027) | |
Total change in net unrealized appreciation (depreciation) | | 18,231,768 |
Net gain (loss) | | 6,717,292 |
Net increase (decrease) in net assets resulting from operations | | $ 6,068,664 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended
April 30, 2003
(Unaudited) | Year ended
October 31,
2002 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (648,628) | $ (812,361) |
Net realized gain (loss) | (11,514,476) | (11,502,014) |
Change in net unrealized appreciation (depreciation) | 18,231,768 | 5,664,330 |
Net increase (decrease) in net assets resulting
from operations | 6,068,664 | (6,650,045) |
Share transactions - net increase (decrease) | 3,446,987 | 29,718,211 |
Total increase (decrease) in net assets | 9,515,651 | 23,068,166 |
| | |
Net Assets | | |
Beginning of period | 200,098,995 | 177,030,829 |
End of period (including accumulated net investment loss of $648,628 and accumulated net investment income of $0, respectively) | $ 209,614,646 | $ 200,098,995 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 | 1998 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.93 | $ 11.08 | $ 15.26 | $ 15.06 | $ 10.07 | $ 10.00 |
Income from Invest-
ment Operations | | | | | | |
Net investment income (loss) E | (.02) | - H | (.01) | (.03) | (.01) | - H |
Net realized and unrealized gain (loss) | .41 | (.15) | (3.73) | .88 | 5.00 | .07 |
Total from invest-
ment operations | .39 | (.15) | (3.74) | .85 | 4.99 | .07 |
Distributions from net investment income | - | - | (.44) | - | - | - |
Distributions in excess of net investment income | - | - | - | (.02) | - | - |
Distributions from net realized gain | - | - | - | (.63) | - | - |
Total distributions | - | - | (.44) | (.65) | - | - |
Net asset value, end of period | $ 11.32 | $ 10.93 | $ 11.08 | $ 15.26 | $ 15.06 | $ 10.07 |
Total Return B, C, D | 3.57% | (1.35)% | (25.17)% | 5.31% | 49.55% | .70% |
Ratios to Average Net Assets G | | | | | |
Expenses before expense reductions | 1.68% A | 1.67% | 1.71% | 1.55% | 2.13% | 6.48% A |
Expenses net of voluntary waivers, if any | 1.68% A | 1.67% | 1.70% | 1.55% | 1.72% | 2.06% A |
Expenses net of all reductions | 1.64% A | 1.57% | 1.57% | 1.50% | 1.67% | 2.06% A |
Net investment income (loss) | (.28)% A | (.02)% | (.05)% | (.16)% | (.06)% | .03% A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 19,093 | $ 16,879 | $ 12,070 | $ 15,348 | $ 3,407 | $ 860 |
Portfolio turnover rate | 197% A | 193% | 270% | 308% | 218% | 199% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F For the period November 3, 1997 (commencement of operations) to October 31, 1998. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 | 1998 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.88 | $ 11.05 | $ 15.21 | $ 15.02 | $ 10.04 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | (.03) | (.03) | (.06) | (.04) | (.03) |
Net realized and unrealized gain (loss) | .41 | (.14) | (3.73) | .88 | 5.02 | .07 |
Total from investment operations | .38 | (.17) | (3.76) | .82 | 4.98 | .04 |
Distributions from net investment income | - | - | (.40) | - | - | - |
Distributions in excess of net investment income | - | - | - | (.01) | - | - |
Distributions from net realized gain | - | - | - | (.62) | - | - |
Total distributions | - | - | (.40) | (.63) | - | - |
Net asset value, end of period | $ 11.26 | $ 10.88 | $ 11.05 | $ 15.21 | $ 15.02 | $ 10.04 |
Total Return B, C, D | 3.49% | (1.54)% | (25.32)% | 5.13% | 49.60% | .40% |
Ratios to Average Net Assets G | | | | | |
Expenses before expense reductions | 1.90% A | 1.86% | 1.87% | 1.72% | 2.29% | 3.98% A |
Expenses net of voluntary waivers, if any | 1.90% A | 1.86% | 1.87% | 1.72% | 1.97% | 2.31% A |
Expenses net of all reductions | 1.86% A | 1.76% | 1.73% | 1.67% | 1.92% | 2.31% A |
Net investment income (loss) | (.50)% A | (.21)% | (.22)% | (.33)% | (.31)% | (.24)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 106,335 | $ 98,148 | $ 88,818 | $ 145,721 | $ 44,233 | $ 12,117 |
Portfolio turnover rate | 197% A | 193% | 270% | 308% | 218% | 199% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F For the period November 3, 1997 (commencement of operations) to October 31, 1998. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 | 1998 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.61 | $ 10.84 | $ 14.96 | $ 14.82 | $ 9.99 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.05) | (.09) | (.10) | (.16) | (.10) | (.07) |
Net realized and unrealized gain (loss) | .38 | (.14) | (3.67) | .89 | 4.93 | .06 |
Total from investment operations | .33 | (.23) | (3.77) | .73 | 4.83 | (.01) |
Distributions from net investment income | - | - | (.35) | - | - | - |
Distributions in excess of net investment income | - | - | - | (.01) | - | - |
Distributions from net realized gain | - | - | - | (.58) | - | - |
Total distributions | - | - | (.35) | (.59) | - | - |
Net asset value, end of period | $ 10.94 | $ 10.61 | $ 10.84 | $ 14.96 | $ 14.82 | $ 9.99 |
Total Return B, C, D | 3.11% | (2.12)% | (25.75)% | 4.60% | 48.35% | (.10)% |
Ratios to Average Net Assets G | | | | | |
Expenses before expense reductions | 2.48% A | 2.44% | 2.47% | 2.30% | 2.82% | 4.97% A |
Expenses net of voluntary waivers, if any | 2.45% A | 2.44% | 2.45% | 2.30% | 2.47% | 2.81% A |
Expenses net of all reductions | 2.41% A | 2.34% | 2.32% | 2.26% | 2.42% | 2.81% A |
Net investment income (loss) | (1.05)% A | (.79)% | (.80)% | (.92)% | (.81)% | (.70)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 36,697 | $ 36,981 | $ 36,593 | $ 49,140 | $ 11,098 | $ 4,047 |
Portfolio turnover rate | 197% A | 193% | 270% | 308% | 218% | 199% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charges. E Calculated based on average shares outstanding during the period. F For the period November 3, 1997 (commencement of operations) to October 31, 1998. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 | 1998 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.62 | $ 10.83 | $ 14.96 | $ 14.83 | $ 9.98 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.05) | (.08) | (.09) | (.15) | (.10) | (.08) |
Net realized and unrealized gain (loss) | .38 | (.13) | (3.67) | .88 | 4.95 | .06 |
Total from investment operations | .33 | (.21) | (3.76) | .73 | 4.85 | (.02) |
Distributions from net investment income | - | - | (.37) | - | - | - |
Distributions in excess of net investment income | - | - | - | (.01) | - | - |
Distributions from net realized gain | - | - | - | (.59) | - | - |
Total distributions | - | - | (.37) | (.60) | - | - |
Net asset value, end of period | $ 10.95 | $ 10.62 | $ 10.83 | $ 14.96 | $ 14.83 | $ 9.98 |
Total Return B, C, D | 3.11% | (1.94)% | (25.71)% | 4.59% | 48.60% | (.20)% |
Ratios to Average Net Assets G | | | | | |
Expenses before expense reductions | 2.39% A | 2.34% | 2.38% | 2.25% | 2.82% | 5.44% A |
Expenses net of voluntary waivers, if any | 2.39% A | 2.34% | 2.38% | 2.25% | 2.47% | 2.81% A |
Expenses net of all reductions | 2.35% A | 2.24% | 2.24% | 2.21% | 2.42% | 2.81% A |
Net investment income (loss) | (.99)% A | (.69)% | (.73)% | (.86)% | (.81)% | (.75)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 39,165 | $ 37,514 | $ 33,118 | $ 44,041 | $ 7,874 | $ 2,217 |
Portfolio turnover rate | 197% A | 193% | 270% | 308% | 218% | 199% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charges. E Calculated based on average shares outstanding during the period. F For the period November 3, 1997 (commencement of operations) to October 31, 1998. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 | 1998 E |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.08 | $ 11.17 | $ 15.35 | $ 15.09 | $ 10.09 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | - G | .06 | .06 | .04 | .02 | .04 |
Net realized and unrealized gain (loss) | .41 | (.15) | (3.75) | .88 | 4.98 | .05 |
Total from investment operations | .41 | (.09) | (3.69) | .92 | 5.00 | .09 |
Distributions from net investment income | - | - | (.49) | - | - | - |
Distributions in excess of net investment income | - | - | - | (.03) | - | - |
Distributions from net realized gain | - | - | - | (.63) | - | - |
Total distributions | - | - | (.49) | (.66) | - | - |
Net asset value, end of period | $ 11.49 | $ 11.08 | $ 11.17 | $ 15.35 | $ 15.09 | $ 10.09 |
Total Return B, C | 3.70% | (.81)% | (24.75)% | 5.78% | 49.55% | .90% |
Ratios to Average Net Assets F | | | | | |
Expenses before expense reductions | 1.40% A | 1.15% | 1.19% | 1.15% | 1.70% | 3.49% A |
Expenses net of voluntary waivers, if any | 1.40% A | 1.15% | 1.19% | 1.15% | 1.47% | 1.81% A |
Expenses net of all reductions | 1.36% A | 1.06% | 1.05% | 1.10% | 1.42% | 1.81% A |
Net investment income (loss) | -% A | .50% | .46% | .24% | .19% | .34% A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 8,324 | $ 10,577 | $ 6,432 | $ 9,551 | $ 7,099 | $ 4,682 |
Portfolio turnover rate | 197% A | 193% | 270% | 308% | 218% | 199% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E For the period November 3, 1997 (commencement of operations) to October 31, 1998. F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. G Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2003 (Unaudited)
1. Significant Accounting Policies.
Fidelity Advisor International Capital Appreciation Fund (the fund) is a fund of Fidelity Advisor Series VIII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
The fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
The fund's 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 fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. If an event that is expected to materially affect the value of a security occurs after the close of an exchange or market on which that security trades, but prior to the NAV calculation, then that security will be fair valued taking the event into account. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
1. Significant Accounting Policies - continued
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. 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 fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, which includes amortization of premium and accretion of discount on debt securities, as required, 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.
Income Tax Information and Distributions to Shareholders. Each year the fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. Foreign taxes are provided for based on each fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Income dividends and capital gain distributions are declared separately for each class. 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. Capital accounts within the financial statements are adjusted for permanent and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), net operating losses, capital loss carryforwards and losses deferred due to wash sales.
Semiannual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investments including unrealized appreciation (depreciation) as of period end was as follows:
Unrealized appreciation | $ 23,663,849 | | |
Unrealized depreciation | (9,629,128) | |
Net unrealized appreciation (depreciation) | $ 14,034,721 | |
Cost for federal income tax purposes | $ 219,433,999 | |
2. Operating Policies.
Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. The custodian bank receives the collateral, which is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
3. Purchases and Sales of Investments.
Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee.
The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the fund's average net assets and a group fee rate that averaged .28% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .73% of the fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class'
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
average net assets. Class A and Class T Plans also authorize the use of brokerage commissions to pay distribution expenses. In addition, FDC may pay financial intermediaries for selling shares of the fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, the total amounts paid to and retained by FDC and the amount of distribution expenses paid with brokerage commissions were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC | Paid with
Commissions |
Class A | 0% | .25% | $ 23,273 | $ 76 | $ 431 |
Class T | .25% | .25% | 253,823 | 5,407 | 2,387 |
Class B | .75% | .25% | 177,810 | 133,719 | - |
Class C | .75% | .25% | 185,012 | 42,176 | - |
| | | $ 639,918 | $ 181,378 | $ 2,818 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares of the fund. FDC receives the proceeds of contingent deferred sales charge (CDSC) levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, and .25% for certain purchases of Class A and Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC | |
Class A | $ 5,949 | |
Class T | 6,211 | |
Class B* | 64,893 | |
Class C* | 3,007 | |
| $ 80,060 | |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent (collectively referred to as the transfer agent) for each class of the fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the fund. FIIOC pays for
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
typesetting, printing and mailing of all shareholder reports, except proxy statements. For the period, the following amounts were paid to FIIOC:
| Amount | % of Average
Net Assets |
Class A | $ 45,906 | .50* |
Class T | 236,936 | .47* |
Class B | 98,886 | .56* |
Class C | 86,208 | .47* |
Institutional Class | 25,250 | .48* |
| $ 493,186 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the 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.
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $152,556 for the period.
Brokerage Commissions. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms are shown under the caption "Other Information" at the end of the fund's Schedule of Investments.
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $3.5 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 fund has agreed to pay commitment fees on its pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Security Lending.
The fund lends portfolio securities from time to time in order to earn additional income. The 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 fund and any additional required collateral is delivered to the fund 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 the fund's Statement of Assets and Liabilities.
7. Expense Reductions.
FMR agreed to reimburse the classes of the fund to the extent operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, are excluded from this reimbursement.
| Expense
Limitations | Reimbursement
from adviser |
| | |
Class B | 2.45% | $ 4,790 |
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services may include payments of expenses on behalf of the fund to support distribution of fund shares for Class A and Class T ("Distribution Expense Reduction") and to pay other fund expenses, such as transfer agent fees ("Other Expense Reduction") collectively referred to as "Directed Brokerage" in the accompanying table. Directed brokerage generally benefits all shareholders of each class by reducing fund expenses. Each of Class A and Class T shareholders' Other Expense Reduction benefit is reduced by the amount of any Distribution Expense Reduction. In addition, through arrangements with the fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. All of the applicable expense reductions are noted in the table below.
| Directed Brokerage | |
| Distribution
expense reduction | Other
expense reduction | Custody
expense reduction |
Fund Level | $ | $ 37,777 | $ 187 |
Class A | 431 | - | - |
Class T | 2,387 | - | - |
| $ 2,818 | $ 37,777 | $ 187 |
Semiannual Report
8. Other Information.
At the end of the period, one unaffiliated shareholder was the owner of record of 13% of the total outstanding shares of the fund.
9. Share Transactions
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2003 | Year ended
October 31,
2002 | Six months ended April 30,
2003 | Year ended
October 31,
2002 |
Class A | | | | |
Shares sold | 2,203,300 | 3,695,180 | $ 23,229,189 | $ 45,047,908 |
Shares redeemed | (2,059,975) | (3,240,498) | (21,657,961) | (39,441,245) |
Net increase (decrease) |
143,325
|
454,682
|
$ 1,571,228
|
$ 5,606,663
|
Class T | | | | |
Shares sold | 2,494,181 | 7,972,427 | $ 26,714,623 | $ 98,947,323 |
Shares redeemed | (2,065,549) | (6,989,312) | (21,722,249) | (86,656,988) |
Net increase (decrease) |
428,632
|
983,115
|
$ 4,992,374
|
$ 12,290,335
|
Class B | | | | |
Shares sold | 310,841 | 1,073,501 | $ 3,231,774 | $ 13,249,979 |
Shares redeemed | (442,730) | (964,258) | (4,540,526) | (11,540,142) |
Net increase (decrease) |
(131,889)
|
109,243
|
$ (1,308,752)
|
$ 1,709,837
|
Class C | | | | |
Shares sold | 485,001 | 2,256,558 | $ 5,050,315 | $ 27,408,888 |
Shares redeemed | (442,852) | (1,780,095) | (4,547,241) | (21,555,315) |
Net increase (decrease) |
42,149
|
476,463
|
$ 503,074
|
$ 5,853,573
|
Institutional Class | | | | |
Shares sold | 420,185 | 1,939,247 | $ 4,550,796 | $ 24,872,811 |
Shares redeemed | (650,481) | (1,560,448) | (6,861,733) | (20,615,008) |
Net increase (decrease) |
(230,296)
|
378,799
|
$ (2,310,937)
|
$ 4,257,803
|
Semiannual Report
Semiannual Report
Semiannual Report
Semiannual Report
Semiannual Report
Semiannual Report
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 International Investment Advisors
Fidelity International Investment Advisors (U.K.) Limited
Fidelity Investments Japan Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
Semiannual Report
Fidelity Advisor Aggressive Growth Fund |
Fidelity Advisor Asset Allocation Fund |
Fidelity Advisor Balanced Fund |
Fidelity Advisor Biotechnology Fund |
Fidelity Advisor California Municipal Income Fund |
Fidelity Advisor Consumer Industries Fund |
Fidelity Advisor Cyclical Industries Fund |
Fidelity Advisor Developing Communications Fund |
Fidelity Advisor Diversified International Fund |
Fidelity Advisor Dividend Growth Fund |
Fidelity Advisor Dynamic Capital Appreciation Fund |
Fidelity Advisor Electronics Fund |
Fidelity Advisor Emerging Asia Fund |
Fidelity Advisor Emerging Markets Income Fund |
Fidelity Advisor Equity Growth Fund |
Fidelity Advisor Equity Income Fund |
Fidelity Advisor Equity Value Fund |
Fidelity Advisor Europe Capital Appreciation Fund |
Fidelity Advisor Fifty Fund |
Fidelity Advisor Financial Services Fund |
Fidelity Advisor Floating Rate High Income Fund |
Fidelity Advisor Global Equity Fund |
Fidelity Advisor Government Investment Fund |
Fidelity Advisor Growth & Income Fund |
Fidelity Advisor Growth Opportunities |
Fidelity Advisor Health Care Fund |
Fidelity Advisor High Income Advantage Fund |
Fidelity Advisor High Income Fund |
Fidelity Advisor Inflation-Protected Bond Fund |
Fidelity Advisor Intermediate Bond Fund |
Fidelity Advisor International Capital Appreciation Fund |
Fidelity Advisor Investment Grade Bond Fund |
Fidelity Advisor Japan Fund |
Fidelity Advisor Korea Fund |
Fidelity Advisor Large Cap Fund |
Fidelity Advisor Latin America Fund |
Fidelity Advisor Leveraged Company Stock Fund |
Fidelity Advisor Mid Cap Fund |
Fidelity Advisor Mortgage Securities Fund |
Fidelity Advisor Municipal Income Fund |
Fidelity Advisor Natural Resources Fund |
Fidelity Advisor New York Municipal Income Fund |
Fidelity Advisor Overseas Fund |
Fidelity Advisor Real Estate Fund |
Fidelity Advisor Short Fixed-Income Fund |
Fidelity Advisor Small Cap Fund |
Fidelity Advisor Strategic Growth Fund |
Fidelity Advisor Strategic Income Fund |
Fidelity Advisor Tax Managed
Stock Fund |
Fidelity Advisor Technology Fund |
Fidelity Advisor Telecommunications & Utilities Growth Fund |
Fidelity Advisor Value Strategies Fund |
Prime Fund |
Tax-Exempt Fund |
Treasury Fund |
(Fidelity Investment logo)(registered trademark)
AICAPI-USAN-0603
1.784891.100
Fidelity® Advisor
Japan
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2003
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
| | |
| | |
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.
(automated graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.
Neither the fund nor Fidelity Distributors Corporation is a bank.
For more information on any Fidelity Advisor fund, including charges and expenses, contact your investment professional for a free prospectus. Read it carefully before you invest or send money.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
This shareholder update and report on the performance of your fund is among the first to be produced under the new Sarbanes-Oxley Public Company Accounting and Investor Protection Act of 2002. This act requires that public companies certify, under penalty of law, the financial information they report to shareholders. It was adopted by Congress in reaction to several incidents of corporate malfeasance that brought the integrity of management of some publicly traded companies into question.
After the act was signed into law, the Securities and Exchange Commission interpreted it as applying to mutual funds as well as public companies. Thus, every mutual fund now is required to certify that the financial information provided in annual and semiannual reports to shareholders fully and fairly presents its financial position.
There is little doubt that the intent of Congress and regulators in this matter is a noble one - to improve the accuracy and accountability of financial reporting to investors by corporate America. We in no way condone any of the activities that brought about these requirements, and we welcome any and every reasonable proposal to strengthen investor protection and information disclosure.
That said, we are proud that mutual funds have always provided full and fair disclosure. Governed by the Investment Company Act of 1940 - and monitored and regulated by federal and state agencies, industry oversight associations, and independent directors - mutual funds are among the most transparent of all financial products. For example, the prices of mutual fund shares are established and published every business day, and the majority of members of the Board of Trustees that oversees our funds are not affiliated with the business of Fidelity. The disclosure standards of mutual funds actually have become models for governance and transparency across corporate America.
We are, of course, complying in full with the letter of this new requirement and hope that any future efforts by Congress to reassure investors about the honesty of corporate America will focus on practical and substantive solutions of genuine value to shareholders.
This sort of careful consideration was evident as Congress deliberated President Bush's tax cut package this spring, then enacted legislation that contains a variety of benefits for American families, investors and businesses. Although the final bill did not completely eliminate the tax that individual investors pay when they receive dividends from companies, it still will benefit American investors, and we applaud it in the spirit of compromise that marked the debate in Congress.
At Fidelity, we are committed to acting at all times in accordance with the highest standards of integrity and in the best interests of our fund shareholders. We are proud of the amount of information we provide to those who invest in our funds and pleased to continue that level of communication with you in these reports.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Investment Changes
Top Ten Stocks as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Toyota Motor Corp. | 5.1 | 4.5 |
Takeda Chemical Industries Ltd. | 4.7 | 5.0 |
NTT DoCoMo, Inc. | 4.1 | 2.1 |
Canon, Inc. | 4.0 | 4.1 |
Tokyo Electric Power Co. | 3.4 | 2.6 |
Nomura Holdings, Inc. | 3.4 | 3.0 |
Nissan Motor Co. Ltd. | 3.1 | 3.4 |
East Japan Railway Co. | 3.0 | 2.0 |
Tokyo Electron Ltd. | 2.5 | 1.7 |
Rohm Co. Ltd. | 2.4 | 1.9 |
| 35.7 | |
Top Five Market Sectors as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Consumer Discretionary | 25.0 | 31.7 |
Information Technology | 23.1 | 21.5 |
Financials | 12.4 | 13.4 |
Consumer Staples | 8.2 | 7.9 |
Telecommunication Services | 7.5 | 4.0 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2003 | As of October 31, 2002 |
| Stocks 98.4% | | | Stocks 94.8% | |
| Short-Term
Investments and
Net Other Assets 1.6% | | | Short-Term
Investments and
Net Other Assets 5.2% | |
Semiannual Report
Investments April 30, 2003 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.4% |
| Shares | | Value (Note 1) |
CONSUMER DISCRETIONARY - 25.0% |
Auto Components - 1.6% |
Bridgestone Corp. | 23,000 | | $ 261,735 |
Denso Corp. | 10,900 | | 155,852 |
| | 417,587 |
Automobiles - 10.6% |
Honda Motor Co. Ltd. | 19,200 | | 640,512 |
Nissan Motor Co. Ltd. | 109,600 | | 840,084 |
Toyota Motor Corp. | 60,900 | | 1,378,779 |
| | 2,859,375 |
Household Durables - 5.0% |
Daito Trust Construction Co. | 27,200 | | 520,459 |
Matsushita Electric Industrial Co. Ltd. | 61,000 | | 484,340 |
Nintendo Co. Ltd. | 4,400 | | 344,909 |
| | 1,349,708 |
Leisure Equipment & Products - 1.6% |
Fuji Photo Film Co. Ltd. | 16,000 | | 409,100 |
Konica Corp. | 3,000 | | 27,528 |
| | 436,628 |
Media - 0.8% |
Dentsu, Inc. | 71 | | 211,994 |
Multiline Retail - 3.8% |
Don Quijote Co. Ltd. | 6,600 | | 601,186 |
Hankyu Department Stores, Inc. | 23,000 | | 126,322 |
Ito-Yokado Co. Ltd. | 13,000 | | 306,699 |
| | 1,034,207 |
Specialty Retail - 1.6% |
Nishimatsuya Chain Co. Ltd. | 5,700 | | 126,326 |
Yamada Denki Co. Ltd. | 16,400 | | 317,255 |
| | 443,581 |
TOTAL CONSUMER DISCRETIONARY | | 6,753,080 |
CONSUMER STAPLES - 8.2% |
Food & Drug Retailing - 1.9% |
FamilyMart Co. Ltd. | 17,500 | | 334,854 |
Lawson, Inc. | 5,800 | | 178,544 |
| | 513,398 |
Food Products - 1.6% |
Ajinomoto Co., Inc. | 42,000 | | 427,436 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
CONSUMER STAPLES - continued |
Household Products - 3.2% |
Kao Corp. | 16,000 | | $ 292,695 |
Uni-Charm Corp. | 14,700 | | 587,283 |
| | 879,978 |
Personal Products - 1.1% |
Shiseido Co. Ltd. | 32,000 | | 293,099 |
Tobacco - 0.4% |
Japan Tobacco, Inc. | 19 | | 111,064 |
TOTAL CONSUMER STAPLES | | 2,224,975 |
FINANCIALS - 12.4% |
Banks - 2.9% |
Bank of Yokohama Ltd. | 68,000 | | 240,784 |
Mitsubishi Tokyo Finance Group, Inc. (MTFG) | 85 | | 299,200 |
Sumitomo Mitsui Financial Group, Inc. | 154 | | 242,214 |
| | 782,198 |
Diversified Financials - 8.6% |
Aeon Credit Service Ltd. | 6,100 | | 145,965 |
Credit Saison Co. Ltd. | 18,200 | | 343,656 |
JAFCO Co. Ltd. | 8,800 | | 319,004 |
Nikko Cordial Corp. | 140,000 | | 376,803 |
Nomura Holdings, Inc. | 93,000 | | 923,781 |
ORIX Corp. | 4,300 | | 197,107 |
| | 2,306,316 |
Insurance - 0.9% |
Sompo Japan Insurance, Inc. | 54,000 | | 247,529 |
TOTAL FINANCIALS | | 3,336,043 |
HEALTH CARE - 6.6% |
Health Care Equipment & Supplies - 0.4% |
Japan Medical Dynamic Marketing, Inc. | 6,900 | | 94,132 |
Pharmaceuticals - 6.2% |
Fujisawa Pharmaceutical Co. Ltd. | 11,000 | | 186,888 |
Takeda Chemical Industries Ltd. | 34,600 | | 1,271,727 |
Yamanouchi Pharmaceutical Co. Ltd. | 9,000 | | 227,848 |
| | 1,686,463 |
TOTAL HEALTH CARE | | 1,780,595 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
INDUSTRIALS - 7.4% |
Construction & Engineering - 1.0% |
JGC Corp. | 37,000 | | $ 261,407 |
Machinery - 1.4% |
SMC Corp. | 2,300 | | 173,716 |
THK Co. Ltd. | 22,100 | | 204,466 |
| | 378,182 |
Marine - 0.4% |
Kawasaki Kisen Kaisha Ltd. | 50,000 | | 114,807 |
Road & Rail - 3.8% |
East Japan Railway Co. | 180 | | 817,528 |
Nippon Express Co. Ltd. | 57,000 | | 213,340 |
| | 1,030,868 |
Trading Companies & Distributors - 0.8% |
Mitsui & Co. Ltd. | 46,000 | | 218,596 |
TOTAL INDUSTRIALS | | 2,003,860 |
INFORMATION TECHNOLOGY - 23.1% |
Computers & Peripherals - 0.5% |
NEC Corp. | 40,000 | | 125,489 |
Electronic Equipment & Instruments - 5.9% |
Citizen Electronics Co. Ltd. | 2,200 | | 92,519 |
Hoya Corp. | 6,600 | | 391,354 |
Keyence Corp. | 1,430 | | 230,566 |
Kyocera Corp. | 9,600 | | 469,927 |
Nichicon Corp. | 23,200 | | 237,278 |
Yokogawa Electric Corp. | 26,000 | | 185,878 |
| | 1,607,522 |
IT Consulting & Services - 1.8% |
Hitachi Information Systems Co. Ltd. | 4,800 | | 90,836 |
Meitec Corp. | 9,700 | | 247,201 |
Nomura Research Institute Ltd. | 2,400 | | 143,925 |
| | 481,962 |
Office Electronics - 7.7% |
Canon, Inc. | 27,000 | | 1,082,970 |
Minolta Co. Ltd. (a) | 81,000 | | 449,640 |
Ricoh Co. Ltd. | 35,000 | | 538,416 |
| | 2,071,026 |
Semiconductor Equipment & Products - 6.9% |
Nikon Corp. (a) | 26,000 | | 173,851 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
INFORMATION TECHNOLOGY - continued |
Semiconductor Equipment & Products - continued |
Rohm Co. Ltd. | 6,300 | | $ 651,222 |
Tokyo Electron Ltd. | 18,200 | | 684,251 |
UMC Japan (a) | 464 | | 366,845 |
| | 1,876,169 |
Software - 0.3% |
Nippon System Development Co. Ltd. | 8,400 | | 83,014 |
TOTAL INFORMATION TECHNOLOGY | | 6,245,182 |
MATERIALS - 3.1% |
Chemicals - 2.5% |
Hitachi Chemical Co. Ltd. | 19,100 | | 173,176 |
Shin-Etsu Chemical Co. Ltd. | 16,300 | | 489,432 |
| | 662,608 |
Containers & Packaging - 0.6% |
Fuji Seal, Inc. | 4,100 | | 167,248 |
TOTAL MATERIALS | | 829,856 |
TELECOMMUNICATION SERVICES - 7.5% |
Diversified Telecommunication Services - 1.8% |
Nippon Telegraph & Telephone Corp. | 142 | | 495,296 |
Wireless Telecommunication Services - 5.7% |
KDDI Corp. | 143 | | 435,393 |
NTT DoCoMo, Inc. | 525 | | 1,086,253 |
| | 1,521,646 |
TOTAL TELECOMMUNICATION SERVICES | | 2,016,942 |
UTILITIES - 5.1% |
Electric Utilities - 5.1% |
Kyushu Electric Power Co., Inc. | 28,300 | | 441,299 |
Tokyo Electric Power Co. | 45,400 | | 924,076 |
| | 1,365,375 |
TOTAL COMMON STOCKS (Cost $31,858,454) | 26,555,908 |
Money Market Funds - 1.5% |
| Shares | | Value (Note 1) |
Fidelity Cash Central Fund, 1.29% (b)
(Cost $421,744) | 421,744 | | $ 421,744 |
TOTAL INVESTMENT PORTFOLIO - 99.9% (Cost $32,280,198) | | 26,977,652 |
NET OTHER ASSETS - 0.1% | | 14,704 |
NET ASSETS - 100% | $ 26,992,356 |
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 $8,457,347 and $11,318,540, respectively. |
Income Tax Information |
At October 31, 2002, the fund had a capital loss carryforward of approximately $31,491,000 of which $4,503,000, $17,004,000 and $9,984,000 will expire on October 31, 2008, 2009 and 2010, respectively. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| April 30, 2003 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $697,590) (cost $32,280,198) - See accompanying schedule | | $ 26,977,652 |
Foreign currency held at value (cost $4,941) | | 4,938 |
Receivable for investments sold | | 721,730 |
Receivable for fund shares sold | | 132,402 |
Dividends receivable | | 130,069 |
Interest receivable | | 1,921 |
Receivable from investment adviser for expense reductions | | 17,334 |
Other receivables | | 3,046 |
Total assets | | 27,989,092 |
| | |
Liabilities | | |
Payable for investments purchased | $ 66,218 | |
Payable for fund shares redeemed | 166,753 | |
Accrued management fee | 15,867 | |
Distribution fees payable | 14,642 | |
Other payables and accrued expenses | 33,756 | |
Collateral on securities loaned, at value | 699,500 | |
Total liabilities | | 996,736 |
| | |
Net Assets | | $ 26,992,356 |
Net Assets consist of: | | |
Paid in capital | | $ 65,429,802 |
Accumulated net investment loss | | (166,465) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (32,965,221) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (5,305,760) |
Net Assets | | $ 26,992,356 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| April 30, 2003 (Unaudited) |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share
($4,004,724 ÷ 498,085 shares) | | $ 8.04 |
| | |
Maximum offering price per share (100/94.25 of $8.04) | | $ 8.53 |
Class T:
Net Asset Value and redemption price per share ($7,009,827 ÷ 877,664 shares) | | $ 7.99 |
| | |
Maximum offering price per share (100/96.50 of $7.99) | | $ 8.28 |
Class B:
Net Asset Value and offering price per share ($8,729,927 ÷ 1,111,892 shares) A | | $ 7.85 |
| | |
Class C:
Net Asset Value and offering price per share ($5,152,138 ÷ 652,599 shares) A | | $ 7.89 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($2,095,740 ÷ 258,094 shares) | | $ 8.12 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
| Six months ended April 30, 2003 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 149,478 |
Interest | | 5,479 |
Security lending | | 19,240 |
| | 174,197 |
Less foreign taxes withheld | | (15,619) |
Total income | | 158,578 |
| | |
Expenses | | |
Management fee | $ 111,780 | |
Transfer agent fees | 84,386 | |
Distribution fees | 97,429 | |
Accounting and security lending fees | 31,906 | |
Non-interested trustees' compensation | 65 | |
Custodian fees and expenses | 19,470 | |
Registration fees | 47,107 | |
Audit | 22,729 | |
Legal | 1,208 | |
Miscellaneous | 87 | |
Total expenses before reductions | 416,167 | |
Expense reductions | (91,124) | 325,043 |
Net investment income (loss) | | (166,465) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities | (923,666) | |
Foreign currency transactions | (3,046) | |
Total net realized gain (loss) | | (926,712) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (1,358,990) | |
Assets and liabilities in foreign currencies | 4,083 | |
Total change in net unrealized appreciation (depreciation) | | (1,354,907) |
Net gain (loss) | | (2,281,619) |
Net increase (decrease) in net assets resulting from operations | | $ (2,448,084) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended
April 30, 2003
(Unaudited) | Year ended
October 31,
2002 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (166,465) | $ (653,050) |
Net realized gain (loss) | (926,712) | (9,499,258) |
Change in net unrealized appreciation (depreciation) | (1,354,907) | 3,943,300 |
Net increase (decrease) in net assets resulting
from operations | (2,448,084) | (6,209,008) |
Share transactions - net increase (decrease) | (4,009,298) | 2,604,541 |
Total increase (decrease) in net assets | (6,457,382) | (3,604,467) |
| | |
Net Assets | | |
Beginning of period | 33,449,738 | 37,054,205 |
End of period (including accumulated net investment loss of $166,465 and undistributed net investment income of $0, respectively) | $ 26,992,356 | $ 33,449,738 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.74 | $ 10.18 | $ 17.78 | $ 19.04 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | (.03) | (.13) | (.15) | (.16) | (.13) |
Net realized and unrealized gain (loss) | (.67) | (1.31) | (6.13) | (.76) | 9.17 |
Total from investment operations | (.70) | (1.44) | (6.28) | (.92) | 9.04 |
Distributions from net investment income | - | - | (1.32) | (.04) | - |
Distributions in excess of net investment income | - | - | - | (.08) | - |
Distributions from net realized gain | - | - | - | (.22) | - |
Total distributions | - | - | (1.32) | (.34) | - |
Net asset value, end of period | $ 8.04 | $ 8.74 | $ 10.18 | $ 17.78 | $ 19.04 |
Total Return B, C, D | (8.01)% | (14.15)% | (37.89)% | (5.07)% | 90.40% |
Ratios to Average Net Assets G | | | | |
Expenses before expense reductions | 2.40% A | 2.13% | 1.88% | 1.44% | 2.43% A |
Expenses net of voluntary waivers, if any | 1.75% A | 1.94% | 1.88% | 1.44% | 2.02% A |
Expenses net of all reductions | 1.75% A | 1.94% | 1.84% | 1.42% | 2.01% A |
Net investment income (loss) | (.71)% A | (1.27)% | (1.10)% | (.76)% | (1.04)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 4,005 | $ 3,380 | $ 4,204 | $ 18,657 | $ 7,130 |
Portfolio turnover rate | 57% A | 128% | 123% | 169% | 152% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F For the period December 17, 1998 (commencement of operations) to October 31, 1999. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.69 | $ 10.17 | $ 17.72 | $ 19.01 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | (.04) | (.15) | (.20) | (.21) | (.17) |
Net realized and unrealized gain (loss) | (.66) | (1.33) | (6.14) | (.75) | 9.18 |
Total from investment operations | (.70) | (1.48) | (6.34) | (.96) | 9.01 |
Distributions from net investment income | - | - | (1.21) | (.03) | - |
Distributions in excess of net investment income | - | - | - | (.08) | - |
Distributions from net realized gain | - | - | - | (.22) | - |
Total distributions | - | - | (1.21) | (.33) | - |
Net asset value, end of period | $ 7.99 | $ 8.69 | $ 10.17 | $ 17.72 | $ 19.01 |
Total Return B, C, D | (8.06)% | (14.55)% | (38.16)% | (5.29)% | 90.10% |
Ratios to Average Net Assets G | | | | |
Expenses before expense reductions | 2.76% A | 2.45% | 2.25% | 1.71% | 2.63% A |
Expenses net of voluntary waivers, if any | 2.00% A | 2.19% | 2.25% | 1.71% | 2.27% A |
Expenses net of all reductions | 1.99% A | 2.18% | 2.21% | 1.69% | 2.26% A |
Net investment income (loss) | (.95)% A | (1.52)% | (1.48)% | (1.03)% | (1.29)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 7,010 | $ 7,731 | $ 10,363 | $ 29,840 | $ 25,682 |
Portfolio turnover rate | 57% A | 128% | 123% | 169% | 152% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F For the period December 17, 1998 (commencement of operations) to October 31, 1999. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.57 | $ 10.07 | $ 17.55 | $ 18.92 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | (.06) | (.20) | (.26) | (.32) | (.23) |
Net realized and unrealized gain (loss) | (.66) | (1.30) | (6.09) | (.74) | 9.15 |
Total from investment operations | (.72) | (1.50) | (6.35) | (1.06) | 8.92 |
Distributions from net investment income | - | - | (1.13) | (.03) | - |
Distributions in excess of net investment income | - | - | - | (.06) | - |
Distributions from net realized gain | - | - | - | (.22) | - |
Total distributions | - | - | (1.13) | (.31) | - |
Net asset value, end of period | $ 7.85 | $ 8.57 | $ 10.07 | $ 17.55 | $ 18.92 |
Total Return B, C, D | (8.40)% | (14.90)% | (38.44)% | (5.83)% | 89.20% |
Ratios to Average Net Assets G | | | | |
Expenses before expense reductions | 3.19% A | 2.90% | 2.74% | 2.25% | 3.18% A |
Expenses net of voluntary waivers, if any | 2.50% A | 2.69% | 2.74% | 2.25% | 2.78% A |
Expenses net of all reductions | 2.49% A | 2.68% | 2.71% | 2.23% | 2.77% A |
Net investment income (loss) | (1.45)% A | (2.02)% | (1.97)% | (1.57)% | (1.79)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 8,730 | $ 10,229 | $ 13,523 | $ 31,334 | $ 20,667 |
Portfolio turnover rate | 57% A | 128% | 123% | 169% | 152% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F For the period December 17, 1998 (commencement of operations) to October 31, 1999. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.61 | $ 10.13 | $ 17.58 | $ 18.93 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | (.06) | (.20) | (.24) | (.31) | (.24) |
Net realized and unrealized gain (loss) | (.66) | (1.32) | (6.10) | (.73) | 9.17 |
Total from investment operations | (.72) | (1.52) | (6.34) | (1.04) | 8.93 |
Distributions from net investment income | - | - | (1.11) | (.03) | - |
Distributions in excess of net investment income | - | - | - | (.06) | - |
Distributions from net realized gain | - | - | - | (.22) | - |
Total distributions | - | - | (1.11) | (.31) | - |
Net asset value, end of period | $ 7.89 | $ 8.61 | $ 10.13 | $ 17.58 | $ 18.93 |
Total Return B, C, D | (8.36)% | (15.00)% | (38.27)% | (5.72)% | 89.30% |
Ratios to Average Net Assets G | | | | |
Expenses before expense reductions | 2.98% A | 2.72% | 2.59% | 2.16% | 3.11% A |
Expenses net of voluntary waivers, if any | 2.50% A | 2.67% | 2.59% | 2.16% | 2.78% A |
Expenses net of all reductions | 2.50% A | 2.67% | 2.55% | 2.15% | 2.76% A |
Net investment income (loss) | (1.46)% A | (2.00)% | (1.81)% | (1.49)% | (1.79)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 5,152 | $ 6,497 | $ 8,170 | $ 25,481 | $ 22,213 |
Portfolio turnover rate | 57% A | 128% | 123% | 169% | 152% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F For the period December 17, 1998 (commencement of operations) to October 31, 1999. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 E |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.82 | $ 10.25 | $ 17.88 | $ 19.09 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) D | (.02) | (.08) | (.10) | (.09) | (.10) |
Net realized and unrealized gain (loss) | (.68) | (1.35) | (6.16) | (.77) | 9.19 |
Total from investment operations | (.70) | (1.43) | (6.26) | (.86) | 9.09 |
Distributions from net investment income | - | - | (1.37) | (.04) | - |
Distributions in excess of net investment income | - | - | - | (.09) | - |
Distributions from net realized gain | - | - | - | (.22) | - |
Total distributions | - | - | (1.37) | (.35) | - |
Net asset value, end of period | $ 8.12 | $ 8.82 | $ 10.25 | $ 17.88 | $ 19.09 |
Total Return B, C | (7.94)% | (13.95)% | (37.64)% | (4.75)% | 90.90% |
Ratios to Average Net Assets F | | | | |
Expenses before expense reductions | 1.76% A | 1.52% | 1.48% | 1.13% | 2.15% A |
Expenses net of voluntary waivers, if any | 1.50% A | 1.51% | 1.48% | 1.13% | 1.77% A |
Expenses net of all reductions | 1.50% A | 1.51% | 1.44% | 1.11% | 1.76% A |
Net investment income (loss) | (.46)% A | (.84)% | (.70)% | (.45)% | (.78)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 2,096 | $ 5,612 | $ 795 | $ 2,746 | $ 2,986 |
Portfolio turnover rate | 57% A | 128% | 123% | 169% | 152% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E For the period December 17, 1998 (commencement of operations) to October 31, 1999. F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2003 (Unaudited)
1. Significant Accounting Policies.
Fidelity Advisor Japan Fund (the fund) is a fund of Fidelity Advisor Series VIII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
The fund offers Class A, Class T, Class B, Class C and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
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 fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. If an event that is expected to materially affect the value of a security occurs after the close of an exchange or market on which that security trades, but prior to the NAV calculation, then that security will be fair valued taking the event into account. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
1. Significant Accounting Policies - continued
Foreign Currency - continued
changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. 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 fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, which includes amortization of premium and accretion of discount on debt securities, as required, 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.
Income Tax Information and Distributions to Shareholders. Each year the fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. Foreign taxes are provided for based on each fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Income dividends and capital gain distributions are declared separately for each class. 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. Capital accounts within the financial statements are adjusted for permanent and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due to foreign currency transactions, passive foreign investment
Semiannual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
companies (PFIC), net operating losses, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investments including unrealized appreciation (depreciation) as of period end was as follows:
Unrealized appreciation | $ 1,272,372 | | |
Unrealized depreciation | (7,118,665) | |
Net unrealized appreciation (depreciation) | $ (5,846,293) | |
Cost for federal income tax purposes | $ 32,823,945 | |
2. Operating Policies.
Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. The custodian bank receives the collateral, which is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
3. Purchases and Sales of Investments.
Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee.
The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the fund's average net assets and a group fee rate that averaged .28% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .74% of the fund's average net assets.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. Class A and Class T Plans also authorize the use of brokerage commissions to pay distribution expenses. In addition, FDC may pay financial intermediaries for selling shares of the fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, the total amounts paid to and retained by FDC and the amount of distribution expenses paid with brokerage commissions were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0 % | .25% | $ 4,423 | $ 27 |
Class T | .25% | .25% | 17,452 | 78 |
Class B | .75% | .25% | 47,276 | 35,605 |
Class C | .75% | .25% | 28,278 | 4,039 |
| | | $ 97,429 | $ 39,749 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares of the fund. FDC receives the proceeds of contingent deferred sales charge (CDSC) levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, and .25% for certain purchases of Class A and Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC | |
Class A | $ 3,799 | |
Class T | 992 | |
Class B* | 22,428 | |
Class C* | 2,143 | |
| $ 29,362 | |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent (collectively referred to as the transfer agent) for each class of the fund. FIIOC receives account fees and asset-based fees that vary according to the account size and
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
type of account of the shareholders of the respective classes of the fund. FIIOC pays for typesetting, printing and mailing of all shareholder reports, except proxy statements. For the period, the following amounts were paid to FIIOC:
| Amount | % of
Average
Net Assets |
Class A | $ 10,846 | .61* |
Class T | 25,118 | .72* |
Class B | 30,810 | .65* |
Class C | 12,360 | .44* |
Institutional Class | 5,252 | .22* |
| $ 84,386 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the 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.
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $9,837 for the period.
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $3.5 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 fund has agreed to pay commitment fees on its pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Security Lending.
The fund lends portfolio securities from time to time in order to earn additional income. The 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 fund and any additional required collateral is delivered to the fund 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 the fund's Statement of Assets and Liabilities.
7. Expense Reductions.
FMR agreed to reimburse the classes of the fund to the extent operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, are excluded from this reimbursement.
| Expense
Limitations | Reimbursement
from adviser |
| | |
Class A | 1.75% | $ 11,489 |
Class T | 2.00% | 26,572 |
Class B | 2.50% | 32,809 |
Class C | 2.50% | 13,455 |
Institutional Class | 1.50% | 6,148 |
| | $ 90,473 |
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services may include payments of expenses on behalf of the fund to support distribution of fund shares for Class A and Class T ("Distribution Expense Reduction") and to pay other fund expenses, such as transfer agent fees ("Other Expense Reduction") collectively referred to as "Directed Brokerage" in the accompanying table. Directed brokerage generally benefits all shareholders of each class by reducing fund expenses. Each of Class A and Class T shareholders' Other Expense Reduction benefit is reduced by the amount of any Distribution Expense Reduction. In addition, through arrangements with the fund's custodian,
Semiannual Report
7. Expense Reductions - continued
credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. All of the applicable expense reductions are noted in the table below.
| Directed
Brokerage | |
| Distribution
expense
reduction | Other
expense
reduction | Custody
expense
reduction |
Fund Level | $ - | $ 649 | $ 2 |
| $ - | $ 649 | $ 2 |
8. Other Information
At the end of the period, one unaffiliated shareholder was the owner of record of 12% of the total outstanding shares of the fund.
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2003 | Year ended
October 31,
2002 | Six months ended
April 30,
2003 | Year ended
October 31,
2002 |
Class A | | | | |
Shares sold | 390,521 | 826,406 | $ 3,271,022 | $ 8,388,540 |
Shares redeemed | (279,299) | (852,350) | (2,337,621) | (8,637,459) |
Net increase (decrease) | 111,222 | (25,944) | $ 933,401 | $ (248,919) |
Class T | | | | |
Shares sold | 274,998 | 449,295 | $ 2,195,785 | $ 4,577,112 |
Shares redeemed | (286,646) | (578,673) | (2,368,146) | (5,722,371) |
Net increase (decrease) | (11,648) | (129,378) | $ (172,361) | $ (1,145,259) |
Class B | | | | |
Shares sold | 109,276 | 348,625 | $ 874,128 | $ 3,492,332 |
Shares redeemed | (191,551) | (496,772) | (1,571,403) | (4,768,111) |
Net increase (decrease) | (82,275) | (148,147) | $ (697,275) | $ (1,275,779) |
Class C | | | | |
Shares sold | 113,627 | 584,055 | $ 927,691 | $ 5,899,035 |
Shares redeemed | (215,436) | (636,330) | (1,803,741) | (6,259,305) |
Net increase (decrease) | (101,809) | (52,275) | $ (876,050) | $ (360,270) |
Institutional Class | | | | |
Shares sold | 359,887 | 2,143,103 | $ 2,871,637 | $ 22,491,520 |
Shares redeemed | (738,327) | (1,584,195) | (6,068,650) | (16,856,752) |
Net increase (decrease) | (378,440) | 558,908 | $ (3,197,013) | $ 5,634,768 |
Semiannual Report
Semiannual Report
Semiannual Report
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 International
Investment Advisors
Fidelity International
Investment Advisors
(U.K.) Limited
Fidelity Investments Japan Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agent
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
Semiannual Report
Fidelity Advisor Aggressive Growth Fund |
Fidelity Advisor Asset Allocation Fund |
Fidelity Advisor Balanced Fund |
Fidelity Advisor Biotechnology Fund |
Fidelity Advisor California Municipal Income Fund |
Fidelity Advisor Consumer Industries Fund |
Fidelity Advisor Cyclical Industries Fund |
Fidelity Advisor Developing Communications Fund |
Fidelity Advisor Diversified International Fund |
Fidelity Advisor Dividend Growth Fund |
Fidelity Advisor Dynamic Capital Appreciation Fund |
Fidelity Advisor Electronics Fund |
Fidelity Advisor Emerging Asia Fund |
Fidelity Advisor Emerging Markets Income Fund |
Fidelity Advisor Equity Growth Fund |
Fidelity Advisor Equity Income Fund |
Fidelity Advisor Equity Value Fund |
Fidelity Advisor Europe Capital Appreciation Fund |
Fidelity Advisor Fifty Fund |
Fidelity Advisor Financial Services Fund |
Fidelity Advisor Floating Rate High Income Fund |
Fidelity Advisor Global Equity Fund |
Fidelity Advisor Government Investment Fund |
Fidelity Advisor Growth & Income Fund |
Fidelity Advisor Growth Opportunities |
Fidelity Advisor Health Care Fund |
Fidelity Advisor High Income Advantage Fund |
Fidelity Advisor High Income Fund |
Fidelity Advisor Inflation-Protected Bond Fund |
Fidelity Advisor Intermediate Bond Fund |
Fidelity Advisor International Capital Appreciation Fund |
Fidelity Advisor Investment Grade Bond Fund |
Fidelity Advisor Japan Fund |
Fidelity Advisor Korea Fund |
Fidelity Advisor Large Cap Fund |
Fidelity Advisor Latin America Fund |
Fidelity Advisor Leveraged Company Stock Fund |
Fidelity Advisor Mid Cap Fund |
Fidelity Advisor Mortgage Securities Fund |
Fidelity Advisor Municipal Income Fund |
Fidelity Advisor Natural Resources Fund |
Fidelity Advisor New York Municipal Income Fund |
Fidelity Advisor Overseas Fund |
Fidelity Advisor Real Estate Fund |
Fidelity Advisor Short Fixed-Income Fund |
Fidelity Advisor Small Cap Fund |
Fidelity Advisor Strategic Growth Fund |
Fidelity Advisor Strategic Income Fund |
Fidelity Advisor Tax Managed
Stock Fund |
Fidelity Advisor Technology Fund |
Fidelity Advisor Telecommunications & Utilities Growth Fund |
Fidelity Advisor Value Strategies Fund |
Prime Fund |
Tax-Exempt Fund |
Treasury Fund |
(Fidelity Investment logo)(registered trademark)
AJAF-USAN-0603
1.784892.100
Fidelity® Advisor
Japan
Fund - Institutional Class
Semiannual Report
April 30, 2003
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
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.
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Neither the fund nor Fidelity Distributors Corporation is a bank.
For more information on any Fidelity Advisor fund, including charges and expenses, contact your investment professional for a free prospectus. Read it carefully before you invest or send money.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
This shareholder update and report on the performance of your fund is among the first to be produced under the new Sarbanes-Oxley Public Company Accounting and Investor Protection Act of 2002. This act requires that public companies certify, under penalty of law, the financial information they report to shareholders. It was adopted by Congress in reaction to several incidents of corporate malfeasance that brought the integrity of management of some publicly traded companies into question.
After the act was signed into law, the Securities and Exchange Commission interpreted it as applying to mutual funds as well as public companies. Thus, every mutual fund now is required to certify that the financial information provided in annual and semiannual reports to shareholders fully and fairly presents its financial position.
There is little doubt that the intent of Congress and regulators in this matter is a noble one - to improve the accuracy and accountability of financial reporting to investors by corporate America. We in no way condone any of the activities that brought about these requirements, and we welcome any and every reasonable proposal to strengthen investor protection and information disclosure.
That said, we are proud that mutual funds have always provided full and fair disclosure. Governed by the Investment Company Act of 1940 - and monitored and regulated by federal and state agencies, industry oversight associations, and independent directors - mutual funds are among the most transparent of all financial products. For example, the prices of mutual fund shares are established and published every business day, and the majority of members of the Board of Trustees that oversees our funds are not affiliated with the business of Fidelity. The disclosure standards of mutual funds actually have become models for governance and transparency across corporate America.
We are, of course, complying in full with the letter of this new requirement and hope that any future efforts by Congress to reassure investors about the honesty of corporate America will focus on practical and substantive solutions of genuine value to shareholders.
This sort of careful consideration was evident as Congress deliberated President Bush's tax cut package this spring, then enacted legislation that contains a variety of benefits for American families, investors and businesses. Although the final bill did not completely eliminate the tax that individual investors pay when they receive dividends from companies, it still will benefit American investors, and we applaud it in the spirit of compromise that marked the debate in Congress.
At Fidelity, we are committed to acting at all times in accordance with the highest standards of integrity and in the best interests of our fund shareholders. We are proud of the amount of information we provide to those who invest in our funds and pleased to continue that level of communication with you in these reports.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Investment Changes
Top Ten Stocks as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Toyota Motor Corp. | 5.1 | 4.5 |
Takeda Chemical Industries Ltd. | 4.7 | 5.0 |
NTT DoCoMo, Inc. | 4.1 | 2.1 |
Canon, Inc. | 4.0 | 4.1 |
Tokyo Electric Power Co. | 3.4 | 2.6 |
Nomura Holdings, Inc. | 3.4 | 3.0 |
Nissan Motor Co. Ltd. | 3.1 | 3.4 |
East Japan Railway Co. | 3.0 | 2.0 |
Tokyo Electron Ltd. | 2.5 | 1.7 |
Rohm Co. Ltd. | 2.4 | 1.9 |
| 35.7 | |
Top Five Market Sectors as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Consumer Discretionary | 25.0 | 31.7 |
Information Technology | 23.1 | 21.5 |
Financials | 12.4 | 13.4 |
Consumer Staples | 8.2 | 7.9 |
Telecommunication Services | 7.5 | 4.0 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2003 | As of October 31, 2002 |
| Stocks 98.4% | | | Stocks 94.8% | |
| Short-Term
Investments and
Net Other Assets 1.6% | | | Short-Term
Investments and
Net Other Assets 5.2% | |
Semiannual Report
Investments April 30, 2003 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.4% |
| Shares | | Value (Note 1) |
CONSUMER DISCRETIONARY - 25.0% |
Auto Components - 1.6% |
Bridgestone Corp. | 23,000 | | $ 261,735 |
Denso Corp. | 10,900 | | 155,852 |
| | 417,587 |
Automobiles - 10.6% |
Honda Motor Co. Ltd. | 19,200 | | 640,512 |
Nissan Motor Co. Ltd. | 109,600 | | 840,084 |
Toyota Motor Corp. | 60,900 | | 1,378,779 |
| | 2,859,375 |
Household Durables - 5.0% |
Daito Trust Construction Co. | 27,200 | | 520,459 |
Matsushita Electric Industrial Co. Ltd. | 61,000 | | 484,340 |
Nintendo Co. Ltd. | 4,400 | | 344,909 |
| | 1,349,708 |
Leisure Equipment & Products - 1.6% |
Fuji Photo Film Co. Ltd. | 16,000 | | 409,100 |
Konica Corp. | 3,000 | | 27,528 |
| | 436,628 |
Media - 0.8% |
Dentsu, Inc. | 71 | | 211,994 |
Multiline Retail - 3.8% |
Don Quijote Co. Ltd. | 6,600 | | 601,186 |
Hankyu Department Stores, Inc. | 23,000 | | 126,322 |
Ito-Yokado Co. Ltd. | 13,000 | | 306,699 |
| | 1,034,207 |
Specialty Retail - 1.6% |
Nishimatsuya Chain Co. Ltd. | 5,700 | | 126,326 |
Yamada Denki Co. Ltd. | 16,400 | | 317,255 |
| | 443,581 |
TOTAL CONSUMER DISCRETIONARY | | 6,753,080 |
CONSUMER STAPLES - 8.2% |
Food & Drug Retailing - 1.9% |
FamilyMart Co. Ltd. | 17,500 | | 334,854 |
Lawson, Inc. | 5,800 | | 178,544 |
| | 513,398 |
Food Products - 1.6% |
Ajinomoto Co., Inc. | 42,000 | | 427,436 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
CONSUMER STAPLES - continued |
Household Products - 3.2% |
Kao Corp. | 16,000 | | $ 292,695 |
Uni-Charm Corp. | 14,700 | | 587,283 |
| | 879,978 |
Personal Products - 1.1% |
Shiseido Co. Ltd. | 32,000 | | 293,099 |
Tobacco - 0.4% |
Japan Tobacco, Inc. | 19 | | 111,064 |
TOTAL CONSUMER STAPLES | | 2,224,975 |
FINANCIALS - 12.4% |
Banks - 2.9% |
Bank of Yokohama Ltd. | 68,000 | | 240,784 |
Mitsubishi Tokyo Finance Group, Inc. (MTFG) | 85 | | 299,200 |
Sumitomo Mitsui Financial Group, Inc. | 154 | | 242,214 |
| | 782,198 |
Diversified Financials - 8.6% |
Aeon Credit Service Ltd. | 6,100 | | 145,965 |
Credit Saison Co. Ltd. | 18,200 | | 343,656 |
JAFCO Co. Ltd. | 8,800 | | 319,004 |
Nikko Cordial Corp. | 140,000 | | 376,803 |
Nomura Holdings, Inc. | 93,000 | | 923,781 |
ORIX Corp. | 4,300 | | 197,107 |
| | 2,306,316 |
Insurance - 0.9% |
Sompo Japan Insurance, Inc. | 54,000 | | 247,529 |
TOTAL FINANCIALS | | 3,336,043 |
HEALTH CARE - 6.6% |
Health Care Equipment & Supplies - 0.4% |
Japan Medical Dynamic Marketing, Inc. | 6,900 | | 94,132 |
Pharmaceuticals - 6.2% |
Fujisawa Pharmaceutical Co. Ltd. | 11,000 | | 186,888 |
Takeda Chemical Industries Ltd. | 34,600 | | 1,271,727 |
Yamanouchi Pharmaceutical Co. Ltd. | 9,000 | | 227,848 |
| | 1,686,463 |
TOTAL HEALTH CARE | | 1,780,595 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
INDUSTRIALS - 7.4% |
Construction & Engineering - 1.0% |
JGC Corp. | 37,000 | | $ 261,407 |
Machinery - 1.4% |
SMC Corp. | 2,300 | | 173,716 |
THK Co. Ltd. | 22,100 | | 204,466 |
| | 378,182 |
Marine - 0.4% |
Kawasaki Kisen Kaisha Ltd. | 50,000 | | 114,807 |
Road & Rail - 3.8% |
East Japan Railway Co. | 180 | | 817,528 |
Nippon Express Co. Ltd. | 57,000 | | 213,340 |
| | 1,030,868 |
Trading Companies & Distributors - 0.8% |
Mitsui & Co. Ltd. | 46,000 | | 218,596 |
TOTAL INDUSTRIALS | | 2,003,860 |
INFORMATION TECHNOLOGY - 23.1% |
Computers & Peripherals - 0.5% |
NEC Corp. | 40,000 | | 125,489 |
Electronic Equipment & Instruments - 5.9% |
Citizen Electronics Co. Ltd. | 2,200 | | 92,519 |
Hoya Corp. | 6,600 | | 391,354 |
Keyence Corp. | 1,430 | | 230,566 |
Kyocera Corp. | 9,600 | | 469,927 |
Nichicon Corp. | 23,200 | | 237,278 |
Yokogawa Electric Corp. | 26,000 | | 185,878 |
| | 1,607,522 |
IT Consulting & Services - 1.8% |
Hitachi Information Systems Co. Ltd. | 4,800 | | 90,836 |
Meitec Corp. | 9,700 | | 247,201 |
Nomura Research Institute Ltd. | 2,400 | | 143,925 |
| | 481,962 |
Office Electronics - 7.7% |
Canon, Inc. | 27,000 | | 1,082,970 |
Minolta Co. Ltd. (a) | 81,000 | | 449,640 |
Ricoh Co. Ltd. | 35,000 | | 538,416 |
| | 2,071,026 |
Semiconductor Equipment & Products - 6.9% |
Nikon Corp. (a) | 26,000 | | 173,851 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
INFORMATION TECHNOLOGY - continued |
Semiconductor Equipment & Products - continued |
Rohm Co. Ltd. | 6,300 | | $ 651,222 |
Tokyo Electron Ltd. | 18,200 | | 684,251 |
UMC Japan (a) | 464 | | 366,845 |
| | 1,876,169 |
Software - 0.3% |
Nippon System Development Co. Ltd. | 8,400 | | 83,014 |
TOTAL INFORMATION TECHNOLOGY | | 6,245,182 |
MATERIALS - 3.1% |
Chemicals - 2.5% |
Hitachi Chemical Co. Ltd. | 19,100 | | 173,176 |
Shin-Etsu Chemical Co. Ltd. | 16,300 | | 489,432 |
| | 662,608 |
Containers & Packaging - 0.6% |
Fuji Seal, Inc. | 4,100 | | 167,248 |
TOTAL MATERIALS | | 829,856 |
TELECOMMUNICATION SERVICES - 7.5% |
Diversified Telecommunication Services - 1.8% |
Nippon Telegraph & Telephone Corp. | 142 | | 495,296 |
Wireless Telecommunication Services - 5.7% |
KDDI Corp. | 143 | | 435,393 |
NTT DoCoMo, Inc. | 525 | | 1,086,253 |
| | 1,521,646 |
TOTAL TELECOMMUNICATION SERVICES | | 2,016,942 |
UTILITIES - 5.1% |
Electric Utilities - 5.1% |
Kyushu Electric Power Co., Inc. | 28,300 | | 441,299 |
Tokyo Electric Power Co. | 45,400 | | 924,076 |
| | 1,365,375 |
TOTAL COMMON STOCKS (Cost $31,858,454) | 26,555,908 |
Money Market Funds - 1.5% |
| Shares | | Value (Note 1) |
Fidelity Cash Central Fund, 1.29% (b)
(Cost $421,744) | 421,744 | | $ 421,744 |
TOTAL INVESTMENT PORTFOLIO - 99.9% (Cost $32,280,198) | | 26,977,652 |
NET OTHER ASSETS - 0.1% | | 14,704 |
NET ASSETS - 100% | $ 26,992,356 |
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 $8,457,347 and $11,318,540, respectively. |
Income Tax Information |
At October 31, 2002, the fund had a capital loss carryforward of approximately $31,491,000 of which $4,503,000, $17,004,000 and $9,984,000 will expire on October 31, 2008, 2009 and 2010, respectively. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| April 30, 2003 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $697,590) (cost $32,280,198) - See accompanying schedule | | $ 26,977,652 |
Foreign currency held at value (cost $4,941) | | 4,938 |
Receivable for investments sold | | 721,730 |
Receivable for fund shares sold | | 132,402 |
Dividends receivable | | 130,069 |
Interest receivable | | 1,921 |
Receivable from investment adviser for expense reductions | | 17,334 |
Other receivables | | 3,046 |
Total assets | | 27,989,092 |
| | |
Liabilities | | |
Payable for investments purchased | $ 66,218 | |
Payable for fund shares redeemed | 166,753 | |
Accrued management fee | 15,867 | |
Distribution fees payable | 14,642 | |
Other payables and accrued expenses | 33,756 | |
Collateral on securities loaned, at value | 699,500 | |
Total liabilities | | 996,736 |
| | |
Net Assets | | $ 26,992,356 |
Net Assets consist of: | | |
Paid in capital | | $ 65,429,802 |
Accumulated net investment loss | | (166,465) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (32,965,221) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (5,305,760) |
Net Assets | | $ 26,992,356 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| April 30, 2003 (Unaudited) |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share
($4,004,724 ÷ 498,085 shares) | | $ 8.04 |
| | |
Maximum offering price per share (100/94.25 of $8.04) | | $ 8.53 |
Class T:
Net Asset Value and redemption price per share ($7,009,827 ÷ 877,664 shares) | | $ 7.99 |
| | |
Maximum offering price per share (100/96.50 of $7.99) | | $ 8.28 |
Class B:
Net Asset Value and offering price per share ($8,729,927 ÷ 1,111,892 shares) A | | $ 7.85 |
| | |
Class C:
Net Asset Value and offering price per share ($5,152,138 ÷ 652,599 shares) A | | $ 7.89 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($2,095,740 ÷ 258,094 shares) | | $ 8.12 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
| Six months ended April 30, 2003 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 149,478 |
Interest | | 5,479 |
Security lending | | 19,240 |
| | 174,197 |
Less foreign taxes withheld | | (15,619) |
Total income | | 158,578 |
| | |
Expenses | | |
Management fee | $ 111,780 | |
Transfer agent fees | 84,386 | |
Distribution fees | 97,429 | |
Accounting and security lending fees | 31,906 | |
Non-interested trustees' compensation | 65 | |
Custodian fees and expenses | 19,470 | |
Registration fees | 47,107 | |
Audit | 22,729 | |
Legal | 1,208 | |
Miscellaneous | 87 | |
Total expenses before reductions | 416,167 | |
Expense reductions | (91,124) | 325,043 |
Net investment income (loss) | | (166,465) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities | (923,666) | |
Foreign currency transactions | (3,046) | |
Total net realized gain (loss) | | (926,712) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (1,358,990) | |
Assets and liabilities in foreign currencies | 4,083 | |
Total change in net unrealized appreciation (depreciation) | | (1,354,907) |
Net gain (loss) | | (2,281,619) |
Net increase (decrease) in net assets resulting from operations | | $ (2,448,084) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended
April 30, 2003
(Unaudited) | Year ended
October 31,
2002 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (166,465) | $ (653,050) |
Net realized gain (loss) | (926,712) | (9,499,258) |
Change in net unrealized appreciation (depreciation) | (1,354,907) | 3,943,300 |
Net increase (decrease) in net assets resulting
from operations | (2,448,084) | (6,209,008) |
Share transactions - net increase (decrease) | (4,009,298) | 2,604,541 |
Total increase (decrease) in net assets | (6,457,382) | (3,604,467) |
| | |
Net Assets | | |
Beginning of period | 33,449,738 | 37,054,205 |
End of period (including accumulated net investment loss of $166,465 and undistributed net investment income of $0, respectively) | $ 26,992,356 | $ 33,449,738 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.74 | $ 10.18 | $ 17.78 | $ 19.04 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | (.03) | (.13) | (.15) | (.16) | (.13) |
Net realized and unrealized gain (loss) | (.67) | (1.31) | (6.13) | (.76) | 9.17 |
Total from investment operations | (.70) | (1.44) | (6.28) | (.92) | 9.04 |
Distributions from net investment income | - | - | (1.32) | (.04) | - |
Distributions in excess of net investment income | - | - | - | (.08) | - |
Distributions from net realized gain | - | - | - | (.22) | - |
Total distributions | - | - | (1.32) | (.34) | - |
Net asset value, end of period | $ 8.04 | $ 8.74 | $ 10.18 | $ 17.78 | $ 19.04 |
Total Return B, C, D | (8.01)% | (14.15)% | (37.89)% | (5.07)% | 90.40% |
Ratios to Average Net Assets G | | | | |
Expenses before expense reductions | 2.40% A | 2.13% | 1.88% | 1.44% | 2.43% A |
Expenses net of voluntary waivers, if any | 1.75% A | 1.94% | 1.88% | 1.44% | 2.02% A |
Expenses net of all reductions | 1.75% A | 1.94% | 1.84% | 1.42% | 2.01% A |
Net investment income (loss) | (.71)% A | (1.27)% | (1.10)% | (.76)% | (1.04)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 4,005 | $ 3,380 | $ 4,204 | $ 18,657 | $ 7,130 |
Portfolio turnover rate | 57% A | 128% | 123% | 169% | 152% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F For the period December 17, 1998 (commencement of operations) to October 31, 1999. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.69 | $ 10.17 | $ 17.72 | $ 19.01 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | (.04) | (.15) | (.20) | (.21) | (.17) |
Net realized and unrealized gain (loss) | (.66) | (1.33) | (6.14) | (.75) | 9.18 |
Total from investment operations | (.70) | (1.48) | (6.34) | (.96) | 9.01 |
Distributions from net investment income | - | - | (1.21) | (.03) | - |
Distributions in excess of net investment income | - | - | - | (.08) | - |
Distributions from net realized gain | - | - | - | (.22) | - |
Total distributions | - | - | (1.21) | (.33) | - |
Net asset value, end of period | $ 7.99 | $ 8.69 | $ 10.17 | $ 17.72 | $ 19.01 |
Total Return B, C, D | (8.06)% | (14.55)% | (38.16)% | (5.29)% | 90.10% |
Ratios to Average Net Assets G | | | | |
Expenses before expense reductions | 2.76% A | 2.45% | 2.25% | 1.71% | 2.63% A |
Expenses net of voluntary waivers, if any | 2.00% A | 2.19% | 2.25% | 1.71% | 2.27% A |
Expenses net of all reductions | 1.99% A | 2.18% | 2.21% | 1.69% | 2.26% A |
Net investment income (loss) | (.95)% A | (1.52)% | (1.48)% | (1.03)% | (1.29)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 7,010 | $ 7,731 | $ 10,363 | $ 29,840 | $ 25,682 |
Portfolio turnover rate | 57% A | 128% | 123% | 169% | 152% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F For the period December 17, 1998 (commencement of operations) to October 31, 1999. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.57 | $ 10.07 | $ 17.55 | $ 18.92 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | (.06) | (.20) | (.26) | (.32) | (.23) |
Net realized and unrealized gain (loss) | (.66) | (1.30) | (6.09) | (.74) | 9.15 |
Total from investment operations | (.72) | (1.50) | (6.35) | (1.06) | 8.92 |
Distributions from net investment income | - | - | (1.13) | (.03) | - |
Distributions in excess of net investment income | - | - | - | (.06) | - |
Distributions from net realized gain | - | - | - | (.22) | - |
Total distributions | - | - | (1.13) | (.31) | - |
Net asset value, end of period | $ 7.85 | $ 8.57 | $ 10.07 | $ 17.55 | $ 18.92 |
Total Return B, C, D | (8.40)% | (14.90)% | (38.44)% | (5.83)% | 89.20% |
Ratios to Average Net Assets G | | | | |
Expenses before expense reductions | 3.19% A | 2.90% | 2.74% | 2.25% | 3.18% A |
Expenses net of voluntary waivers, if any | 2.50% A | 2.69% | 2.74% | 2.25% | 2.78% A |
Expenses net of all reductions | 2.49% A | 2.68% | 2.71% | 2.23% | 2.77% A |
Net investment income (loss) | (1.45)% A | (2.02)% | (1.97)% | (1.57)% | (1.79)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 8,730 | $ 10,229 | $ 13,523 | $ 31,334 | $ 20,667 |
Portfolio turnover rate | 57% A | 128% | 123% | 169% | 152% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F For the period December 17, 1998 (commencement of operations) to October 31, 1999. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.61 | $ 10.13 | $ 17.58 | $ 18.93 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | (.06) | (.20) | (.24) | (.31) | (.24) |
Net realized and unrealized gain (loss) | (.66) | (1.32) | (6.10) | (.73) | 9.17 |
Total from investment operations | (.72) | (1.52) | (6.34) | (1.04) | 8.93 |
Distributions from net investment income | - | - | (1.11) | (.03) | - |
Distributions in excess of net investment income | - | - | - | (.06) | - |
Distributions from net realized gain | - | - | - | (.22) | - |
Total distributions | - | - | (1.11) | (.31) | - |
Net asset value, end of period | $ 7.89 | $ 8.61 | $ 10.13 | $ 17.58 | $ 18.93 |
Total Return B, C, D | (8.36)% | (15.00)% | (38.27)% | (5.72)% | 89.30% |
Ratios to Average Net Assets G | | | | |
Expenses before expense reductions | 2.98% A | 2.72% | 2.59% | 2.16% | 3.11% A |
Expenses net of voluntary waivers, if any | 2.50% A | 2.67% | 2.59% | 2.16% | 2.78% A |
Expenses net of all reductions | 2.50% A | 2.67% | 2.55% | 2.15% | 2.76% A |
Net investment income (loss) | (1.46)% A | (2.00)% | (1.81)% | (1.49)% | (1.79)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 5,152 | $ 6,497 | $ 8,170 | $ 25,481 | $ 22,213 |
Portfolio turnover rate | 57% A | 128% | 123% | 169% | 152% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F For the period December 17, 1998 (commencement of operations) to October 31, 1999. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 E |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.82 | $ 10.25 | $ 17.88 | $ 19.09 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) D | (.02) | (.08) | (.10) | (.09) | (.10) |
Net realized and unrealized gain (loss) | (.68) | (1.35) | (6.16) | (.77) | 9.19 |
Total from investment operations | (.70) | (1.43) | (6.26) | (.86) | 9.09 |
Distributions from net investment income | - | - | (1.37) | (.04) | - |
Distributions in excess of net investment income | - | - | - | (.09) | - |
Distributions from net realized gain | - | - | - | (.22) | - |
Total distributions | - | - | (1.37) | (.35) | - |
Net asset value, end of period | $ 8.12 | $ 8.82 | $ 10.25 | $ 17.88 | $ 19.09 |
Total Return B, C | (7.94)% | (13.95)% | (37.64)% | (4.75)% | 90.90% |
Ratios to Average Net Assets F | | | | |
Expenses before expense reductions | 1.76% A | 1.52% | 1.48% | 1.13% | 2.15% A |
Expenses net of voluntary waivers, if any | 1.50% A | 1.51% | 1.48% | 1.13% | 1.77% A |
Expenses net of all reductions | 1.50% A | 1.51% | 1.44% | 1.11% | 1.76% A |
Net investment income (loss) | (.46)% A | (.84)% | (.70)% | (.45)% | (.78)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 2,096 | $ 5,612 | $ 795 | $ 2,746 | $ 2,986 |
Portfolio turnover rate | 57% A | 128% | 123% | 169% | 152% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E For the period December 17, 1998 (commencement of operations) to October 31, 1999. F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2003 (Unaudited)
1. Significant Accounting Policies.
Fidelity Advisor Japan Fund (the fund) is a fund of Fidelity Advisor Series VIII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
The fund offers Class A, Class T, Class B, Class C and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
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 fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. If an event that is expected to materially affect the value of a security occurs after the close of an exchange or market on which that security trades, but prior to the NAV calculation, then that security will be fair valued taking the event into account. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
1. Significant Accounting Policies - continued
Foreign Currency - continued
changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. 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 fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, which includes amortization of premium and accretion of discount on debt securities, as required, 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.
Income Tax Information and Distributions to Shareholders. Each year the fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. Foreign taxes are provided for based on each fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Income dividends and capital gain distributions are declared separately for each class. 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. Capital accounts within the financial statements are adjusted for permanent and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due to foreign currency transactions, passive foreign investment
Semiannual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
companies (PFIC), net operating losses, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investments including unrealized appreciation (depreciation) as of period end was as follows:
Unrealized appreciation | $ 1,272,372 | | |
Unrealized depreciation | (7,118,665) | |
Net unrealized appreciation (depreciation) | $ (5,846,293) | |
Cost for federal income tax purposes | $ 32,823,945 | |
2. Operating Policies.
Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. The custodian bank receives the collateral, which is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
3. Purchases and Sales of Investments.
Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee.
The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the fund's average net assets and a group fee rate that averaged .28% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .74% of the fund's average net assets.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. Class A and Class T Plans also authorize the use of brokerage commissions to pay distribution expenses. In addition, FDC may pay financial intermediaries for selling shares of the fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, the total amounts paid to and retained by FDC and the amount of distribution expenses paid with brokerage commissions were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0 % | .25% | $ 4,423 | $ 27 |
Class T | .25% | .25% | 17,452 | 78 |
Class B | .75% | .25% | 47,276 | 35,605 |
Class C | .75% | .25% | 28,278 | 4,039 |
| | | $ 97,429 | $ 39,749 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares of the fund. FDC receives the proceeds of contingent deferred sales charge (CDSC) levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, and .25% for certain purchases of Class A and Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC | |
Class A | $ 3,799 | |
Class T | 992 | |
Class B* | 22,428 | |
Class C* | 2,143 | |
| $ 29,362 | |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent (collectively referred to as the transfer agent) for each class of the fund. FIIOC receives account fees and asset-based fees that vary according to the account size and
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
type of account of the shareholders of the respective classes of the fund. FIIOC pays for typesetting, printing and mailing of all shareholder reports, except proxy statements. For the period, the following amounts were paid to FIIOC:
| Amount | % of
Average
Net Assets |
Class A | $ 10,846 | .61* |
Class T | 25,118 | .72* |
Class B | 30,810 | .65* |
Class C | 12,360 | .44* |
Institutional Class | 5,252 | .22* |
| $ 84,386 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the 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.
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $9,837 for the period.
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $3.5 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 fund has agreed to pay commitment fees on its pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Security Lending.
The fund lends portfolio securities from time to time in order to earn additional income. The 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 fund and any additional required collateral is delivered to the fund 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 the fund's Statement of Assets and Liabilities.
7. Expense Reductions.
FMR agreed to reimburse the classes of the fund to the extent operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, are excluded from this reimbursement.
| Expense
Limitations | Reimbursement
from adviser |
| | |
Class A | 1.75% | $ 11,489 |
Class T | 2.00% | 26,572 |
Class B | 2.50% | 32,809 |
Class C | 2.50% | 13,455 |
Institutional Class | 1.50% | 6,148 |
| | $ 90,473 |
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services may include payments of expenses on behalf of the fund to support distribution of fund shares for Class A and Class T ("Distribution Expense Reduction") and to pay other fund expenses, such as transfer agent fees ("Other Expense Reduction") collectively referred to as "Directed Brokerage" in the accompanying table. Directed brokerage generally benefits all shareholders of each class by reducing fund expenses. Each of Class A and Class T shareholders' Other Expense Reduction benefit is reduced by the amount of any Distribution Expense Reduction. In addition, through arrangements with the fund's custodian,
Semiannual Report
7. Expense Reductions - continued
credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. All of the applicable expense reductions are noted in the table below.
| Directed
Brokerage | |
| Distribution
expense
reduction | Other
expense
reduction | Custody
expense
reduction |
Fund Level | $ - | $ 649 | $ 2 |
| $ - | $ 649 | $ 2 |
8. Other Information
At the end of the period, one unaffiliated shareholder was the owner of record of 12% of the total outstanding shares of the fund.
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2003 | Year ended
October 31,
2002 | Six months ended
April 30,
2003 | Year ended
October 31,
2002 |
Class A | | | | |
Shares sold | 390,521 | 826,406 | $ 3,271,022 | $ 8,388,540 |
Shares redeemed | (279,299) | (852,350) | (2,337,621) | (8,637,459) |
Net increase (decrease) | 111,222 | (25,944) | $ 933,401 | $ (248,919) |
Class T | | | | |
Shares sold | 274,998 | 449,295 | $ 2,195,785 | $ 4,577,112 |
Shares redeemed | (286,646) | (578,673) | (2,368,146) | (5,722,371) |
Net increase (decrease) | (11,648) | (129,378) | $ (172,361) | $ (1,145,259) |
Class B | | | | |
Shares sold | 109,276 | 348,625 | $ 874,128 | $ 3,492,332 |
Shares redeemed | (191,551) | (496,772) | (1,571,403) | (4,768,111) |
Net increase (decrease) | (82,275) | (148,147) | $ (697,275) | $ (1,275,779) |
Class C | | | | |
Shares sold | 113,627 | 584,055 | $ 927,691 | $ 5,899,035 |
Shares redeemed | (215,436) | (636,330) | (1,803,741) | (6,259,305) |
Net increase (decrease) | (101,809) | (52,275) | $ (876,050) | $ (360,270) |
Institutional Class | | | | |
Shares sold | 359,887 | 2,143,103 | $ 2,871,637 | $ 22,491,520 |
Shares redeemed | (738,327) | (1,584,195) | (6,068,650) | (16,856,752) |
Net increase (decrease) | (378,440) | 558,908 | $ (3,197,013) | $ 5,634,768 |
Semiannual Report
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 International
Investment Advisors
Fidelity International
Investment Advisors
(U.K.) Limited
Fidelity Investments Japan Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agent
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
Semiannual Report
Fidelity Advisor Aggressive Growth Fund |
Fidelity Advisor Asset Allocation Fund |
Fidelity Advisor Balanced Fund |
Fidelity Advisor Biotechnology Fund |
Fidelity Advisor California Municipal Income Fund |
Fidelity Advisor Consumer Industries Fund |
Fidelity Advisor Cyclical Industries Fund |
Fidelity Advisor Developing Communications Fund |
Fidelity Advisor Diversified International Fund |
Fidelity Advisor Dividend Growth Fund |
Fidelity Advisor Dynamic Capital Appreciation Fund |
Fidelity Advisor Electronics Fund |
Fidelity Advisor Emerging Asia Fund |
Fidelity Advisor Emerging Markets Income Fund |
Fidelity Advisor Equity Growth Fund |
Fidelity Advisor Equity Income Fund |
Fidelity Advisor Equity Value Fund |
Fidelity Advisor Europe Capital Appreciation Fund |
Fidelity Advisor Fifty Fund |
Fidelity Advisor Financial Services Fund |
Fidelity Advisor Floating Rate High Income Fund |
Fidelity Advisor Global Equity Fund |
Fidelity Advisor Government Investment Fund |
Fidelity Advisor Growth & Income Fund |
Fidelity Advisor Growth Opportunities |
Fidelity Advisor Health Care Fund |
Fidelity Advisor High Income Advantage Fund |
Fidelity Advisor High Income Fund |
Fidelity Advisor Inflation-Protected Bond Fund |
Fidelity Advisor Intermediate Bond Fund |
Fidelity Advisor International Capital Appreciation Fund |
Fidelity Advisor Investment Grade Bond Fund |
Fidelity Advisor Japan Fund |
Fidelity Advisor Korea Fund |
Fidelity Advisor Large Cap Fund |
Fidelity Advisor Latin America Fund |
Fidelity Advisor Leveraged Company Stock Fund |
Fidelity Advisor Mid Cap Fund |
Fidelity Advisor Mortgage Securities Fund |
Fidelity Advisor Municipal Income Fund |
Fidelity Advisor Natural Resources Fund |
Fidelity Advisor New York Municipal Income Fund |
Fidelity Advisor Overseas Fund |
Fidelity Advisor Real Estate Fund |
Fidelity Advisor Short Fixed-Income Fund |
Fidelity Advisor Small Cap Fund |
Fidelity Advisor Strategic Growth Fund |
Fidelity Advisor Strategic Income Fund |
Fidelity Advisor Tax Managed
Stock Fund |
Fidelity Advisor Technology Fund |
Fidelity Advisor Telecommunications & Utilities Growth Fund |
Fidelity Advisor Value Strategies Fund |
Prime Fund |
Tax-Exempt Fund |
Treasury Fund |
(Fidelity Investment logo)(registered trademark)
AJAFI-USAN-0603
1.784893.100
Fidelity® Advisor
Latin America
Fund - Institutional Class
Semiannual Report
April 30, 2003
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
| | |
| | |
| | |
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.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.
Neither the fund nor Fidelity Distributors Corporation is a bank.
For more information on any Fidelity Advisor fund, including charges and expenses, contact your investment professional for a free prospectus. Read it carefully before you invest or send money.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
This shareholder update and report on the performance of your fund is among the first to be produced under the new Sarbanes-Oxley Public Company Accounting and Investor Protection Act of 2002. This act requires that public companies certify, under penalty of law, the financial information they report to shareholders. It was adopted by Congress in reaction to several incidents of corporate malfeasance that brought the integrity of management of some publicly traded companies into question.
After the act was signed into law, the Securities and Exchange Commission interpreted it as applying to mutual funds as well as public companies. Thus, every mutual fund now is required to certify that the financial information provided in annual and semiannual reports to shareholders fully and fairly presents its financial position.
There is little doubt that the intent of Congress and regulators in this matter is a noble one - to improve the accuracy and accountability of financial reporting to investors by corporate America. We in no way condone any of the activities that brought about these requirements, and we welcome any and every reasonable proposal to strengthen investor protection and information disclosure.
That said, we are proud that mutual funds have always provided full and fair disclosure. Governed by the Investment Company Act of 1940 - and monitored and regulated by federal and state agencies, industry oversight associations, and independent directors - mutual funds are among the most transparent of all financial products. For example, the prices of mutual fund shares are established and published every business day, and the majority of members of the Board of Trustees that oversees our funds are not affiliated with the business of Fidelity. The disclosure standards of mutual funds actually have become models for governance and transparency across corporate America.
We are, of course, complying in full with the letter of this new requirement and hope that any future efforts by Congress to reassure investors about the honesty of corporate America will focus on practical and substantive solutions of genuine value to shareholders.
This sort of careful consideration was evident as Congress deliberated President Bush's tax cut package this spring, then enacted legislation that contains a variety of benefits for American families, investors and businesses. Although the final bill did not completely eliminate the tax that individual investors pay when they receive dividends from companies, it still will benefit American investors, and we applaud it in the spirit of compromise that marked the debate in Congress.
At Fidelity, we are committed to acting at all times in accordance with the highest standards of integrity and in the best interests of our fund shareholders. We are proud of the amount of information we provide to those who invest in our funds and pleased to continue that level of communication with you in these reports.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Investment Changes
Top Five Stocks as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Telefonos de Mexico SA de CV sponsored ADR (Mexico, Diversified Telecommunication Services) | 11.2 | 14.3 |
America Movil SA de CV sponsored ADR (Mexico, Wireless Telecommunication Services) | 7.6 | 5.9 |
Petroleo Brasileiro SA Petrobras (Brazil, Oil & Gas) | 6.7 | 5.4 |
Wal-Mart de Mexico SA de CV Series C
(Mexico, Multiline Retail) | 5.2 | 4.8 |
Companhia de Bebidas das Americas (AmBev) sponsored ADR (Brazil, Beverages) | 5.1 | 3.8 |
| 35.8 | |
Top Five Market Sectors as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Telecommunication Services | 25.6 | 24.7 |
Materials | 15.9 | 18.7 |
Financials | 14.0 | 11.5 |
Energy | 12.1 | 12.2 |
Consumer Staples | 11.5 | 14.7 |
Top Five Countries as of April 30, 2003 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
Brazil | 44.3 | 42.4 |
Mexico | 41.4 | 46.4 |
United Kingdom | 2.6 | 2.7 |
Chile | 2.1 | 3.2 |
Luxembourg | 1.1 | 0.0 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2003 | As of October 31, 2002 |
| Stocks 93.0% | | | Stocks 97.3% | |
| Short-Term
Investments and
Net Other Assets 7.0% | | | Short-Term
Investments and
Net Other Assets 2.7% | |
Semiannual Report
Investments April 30, 2003 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.0% |
| Shares | | Value (Note 1) |
Argentina - 0.7% |
Perez Companc SA sponsored ADR (a) | 3,577 | | $ 26,506 |
Brazil - 44.3% |
Aracruz Celulose SA sponsored ADR | 1,655 | | 34,755 |
Banco Bradesco SA: | | | |
(PN) | 13,169,800 | | 54,245 |
sponsored ADR | 2,800 | | 57,680 |
Banco Itau Holding Financeira SA (PN) | 2,402,400 | | 159,280 |
Brasil Telecom Participacoes SA sponsored ADR | 2,000 | | 70,800 |
Centrais Electricas Brasileiras (Electrobras) SA (PN-B) | 5,061,700 | | 43,210 |
Companhia Brasileira de Distribuicao Grupo Pao de Acucar sponsored ADR | 3,433 | | 49,779 |
Companhia de Bebidas das Americas (AmBev) sponsored ADR | 10,000 | | 198,900 |
Companhia Energetica Minas Gerais (CEMIG) (PN) (a) | 3,171,279 | | 33,663 |
Companhia Paranaense de Energia-Copel sponsored ADR | 3,800 | | 12,312 |
Companhia Vale do Rio Doce: | | | |
(PN-A) | 2,000 | | 53,171 |
sponsored: | | | |
ADR | 3,300 | | 92,268 |
ADR (non-vtg.) | 2,300 | | 60,720 |
Embraer - Empresa Brasileira de Aeronautica SA sponsored ADR | 2,840 | | 39,391 |
Gerdau SA sponsored ADR | 3,200 | | 38,912 |
Petroleo Brasileiro SA Petrobras: | | | |
(PN) | 5,100 | | 87,248 |
sponsored: | | | |
ADR | 7,700 | | 142,835 |
ADR (non-vtg.) | 10,100 | | 172,811 |
Tele Norte Leste Participacoes SA ADR | 10,102 | | 109,607 |
Telebras sponsored ADR | 3,300 | | 85,734 |
Uniao de Bancos Brasileiros SA (Unibanco) GDR | 3,100 | | 56,265 |
Usinas Siderurgicas de Minas Gerais SA (Usiminas) (PN-A) | 12,900 | | 48,303 |
Votorantim Celulose e Papel SA (PN) | 607,100 | | 22,774 |
TOTAL BRAZIL | | 1,724,663 |
Chile - 2.1% |
Banco Santander Chile sponsored ADR | 3,156 | | 68,864 |
Vina Concha y Toro SA sponsored ADR | 291 | | 11,276 |
TOTAL CHILE | | 80,140 |
Colombia - 0.8% |
Suramericana de Inversiones SA | 35,800 | | 31,190 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Luxembourg - 1.1% |
Tenaris SA sponsored ADR (a) | 1,884 | | $ 44,274 |
Mexico - 41.4% |
America Movil SA de CV sponsored ADR | 17,600 | | 295,152 |
Cemex SA de CV sponsored ADR | 6,719 | | 153,529 |
Consorcio ARA SA de CV (a) | 11,000 | | 20,334 |
Fomento Economico Mexicano SA de CV sponsored ADR | 3,486 | | 132,329 |
Grupo Bimbo SA de CV Series A | 9,900 | | 15,630 |
Grupo Financiero BBVA Bancomer SA Series B (a) | 135,900 | | 118,329 |
Grupo Modelo SA de CV Series C | 18,100 | | 40,440 |
Grupo Televisa SA de CV sponsored ADR (a) | 6,057 | | 183,769 |
Industrias Penoles SA de CV | 4,500 | | 8,590 |
Telefonos de Mexico SA de CV sponsored ADR | 14,362 | | 433,874 |
TV Azteca SA de CV sponsored ADR | 1,500 | | 8,700 |
Wal-Mart de Mexico SA de CV Series C | 79,805 | | 203,175 |
TOTAL MEXICO | | 1,613,851 |
United Kingdom - 2.6% |
Antofagasta PLC | 10,200 | | 102,754 |
TOTAL COMMON STOCKS (Cost $3,233,602) | 3,623,378 |
Money Market Funds - 4.6% |
| | | |
Fidelity Cash Central Fund, 1.29% (b)
(Cost $177,574) | 177,574 | | 177,574 |
TOTAL INVESTMENT PORTFOLIO - 97.6% (Cost $3,411,176) | | 3,800,952 |
NET OTHER ASSETS - 2.4% | | 94,445 |
NET ASSETS - 100% | $ 3,895,397 |
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 $554,152 and $523,565, respectively. |
The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $19 for the period. |
Income Tax Information |
At October 31, 2002, the fund had a capital loss carryforward of approximately $1,182,000 of which $842,000 and $340,000 will expire on October 31, 2009 and 2010, respectively. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| April 30, 2003 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $3,411,176) - See accompanying schedule | | $ 3,800,952 |
Cash | | 20,795 |
Receivable for fund shares sold | | 138,157 |
Dividends receivable | | 18,154 |
Interest receivable | | 105 |
Receivable from investment adviser for expense reductions | | 16,241 |
Total assets | | 3,994,404 |
| | |
Liabilities | | |
Payable for investments purchased | $ 44,918 | |
Payable for fund shares redeemed | 24,751 | |
Accrued management fee | 2,129 | |
Distribution fees payable | 1,931 | |
Other payables and accrued expenses | 25,278 | |
Total liabilities | | 99,007 |
| | |
Net Assets | | $ 3,895,397 |
Net Assets consist of: | | |
Paid in capital | | $ 4,975,607 |
Undistributed net investment income | | 12,232 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (1,482,863) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 390,421 |
Net Assets | | $ 3,895,397 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| April 30, 2003 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share
($671,129 ÷ 67,225 shares) | | $ 9.98 |
| | |
Maximum offering price per share (100/94.25 of $9.98) | | $ 10.59 |
Class T:
Net Asset Value and redemption price per share ($978,050 ÷ 98,318 shares) | | $ 9.95 |
| | |
Maximum offering price per share (100/96.50 of $9.95) | | $ 10.31 |
Class B:
Net Asset Value and offering price per share ($1,033,073 ÷ 104,999 shares) A | | $ 9.84 |
| | |
Class C:
Net Asset Value and offering price per share ($873,406 ÷ 88,910 shares) A | | $ 9.82 |
| | |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($339,739 ÷ 33,741 shares) | | $ 10.07 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
| Six months ended April 30, 2003 (Unaudited) |
| | |
Dividends | | $ 66,619 |
Interest | | 538 |
| | 67,157 |
Less foreign taxes withheld | | (6,868) |
Total income | | 60,289 |
| | |
Expenses | | |
Management fee | $ 11,784 | |
Transfer agent fees | 13,395 | |
Distribution fees | 10,684 | |
Accounting fees and expenses | 30,011 | |
Non-interested trustees' compensation | 6 | |
Custodian fees and expenses | 4,247 | |
Registration fees | 45,882 | |
Audit | 21,382 | |
Legal | 117 | |
Miscellaneous | 345 | |
Total expenses before reductions | 137,853 | |
Expense reductions | (98,762) | 39,091 |
Net investment income (loss) | | 21,198 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities | (253,484) | |
Foreign currency transactions | (4,884) | |
Total net realized gain (loss) | | (258,368) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 879,298 | |
Assets and liabilities in foreign currencies | 4,977 | |
Total change in net unrealized appreciation (depreciation) | | 884,275 |
Net gain (loss) | | 625,907 |
Net increase (decrease) in net assets resulting from operations | | $ 647,105 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended April 30, 2003
(Unaudited) | Year ended
October 31,
2002 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 21,198 | $ 18,075 |
Net realized gain (loss) | (258,368) | (355,318) |
Change in net unrealized appreciation (depreciation) | 884,275 | (156,942) |
Net increase (decrease) in net assets resulting
from operations | 647,105 | (494,185) |
Distributions to shareholders from net investment income | (15,776) | (31,879) |
Share transactions - net increase (decrease) | 215,475 | (201,312) |
Total increase (decrease) in net assets | 846,804 | (727,376) |
| | |
Net Assets | | |
Beginning of period | 3,048,593 | 3,775,969 |
End of period (including undistributed net investment income of $12,232 and undistributed net investment income of $6,810, respectively) | $ 3,895,397 | $ 3,048,593 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999G |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.29 | $ 9.62 | $ 13.26 | $ 11.64 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss)E | .07 | .09 | .14F | (.07) | .05 |
Net realized and unrealized gain (loss) | 1.71 | (1.30) | (3.70) | 1.69 | 1.59 |
Total from investment operations | 1.78 | (1.21) | (3.56) | 1.62 | 1.64 |
Distributions from net investment income | (.09) | (.12) | - | - | - |
Distributions from net realized gain | - | - | (.08) | - | - |
Total distributions | (.09) | (.12) | (.08) | - | - |
Net asset value, end of period | $ 9.98 | $ 8.29 | $ 9.62 | $ 13.26 | $ 11.64 |
Total ReturnB,C,D | 21.68% | (12.87)% | (26.97)% | 13.92% | 16.40% |
Ratios to Average Net AssetsH | | | | | |
Expenses before expense
reductions | 7.95%A | 5.99% | 4.96% | 3.95% | 8.60%A |
Expenses net of voluntary waivers, if any | 2.02%A | 2.15% | 2.11% | 2.06% | 2.01%A |
Expenses net of all
reductions | 2.02%A | 2.12% | 2.05% | 2.04% | 1.99%A |
Net investment income (loss) | 1.73%A | .86% | 1.22% | (.50)% | .50%A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 671 | $ 428 | $ 546 | $ 921 | $ 756 |
Portfolio turnover rate | 34%A | 132% | 111% | 52% | 50%A |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FInvestment income per share reflects a special dividend which amounted to $.06 per share. GFor the period December 21, 1998 (commencement of operations) to October 31, 1999. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999G |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.24 | $ 9.57 | $ 13.21 | $ 11.62 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss)E | .06 | .06 | .11F | (.11) | .02 |
Net realized and unrealized gain (loss) | 1.71 | (1.30) | (3.67) | 1.70 | 1.60 |
Total from investment operations | 1.77 | (1.24) | (3.56) | 1.59 | 1.62 |
Distributions from net investment income | (.06) | (.09) | - | - | - |
Distributions from net realized gain | - | - | (.08) | - | - |
Total distributions | (.06) | (.09) | (.08) | - | - |
Net asset value, end of period | $ 9.95 | $ 8.24 | $ 9.57 | $ 13.21 | $ 11.62 |
Total ReturnB,C,D | 21.62% | (13.18)% | (27.07)% | 13.68% | 16.20% |
Ratios to Average Net AssetsH | | | | | |
Expenses before expense
reductions | 8.72%A | 6.65% | 5.48% | 4.26% | 8.92%A |
Expenses net of voluntary waivers, if any | 2.27%A | 2.40% | 2.36% | 2.32% | 2.26%A |
Expenses net of all
reductions | 2.27%A | 2.37% | 2.30% | 2.30% | 2.24%A |
Net investment income (loss) | 1.49%A | .61% | .97% | (.75)% | .25%A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 978 | $ 836 | $ 1,124 | $ 2,041 | $ 1,065 |
Portfolio turnover rate | 34%A | 132% | 111% | 52% | 50%A |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FInvestment income per share reflects a special dividend which amounted to $.06 per share. GFor the period December 21, 1998 (commencement of operations) to October 31, 1999. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999G |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.13 | $ 9.44 | $ 13.08 | $ 11.58 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss)E | .04 | .01 | .05F | (.18) | (.02) |
Net realized and unrealized gain (loss) | 1.68 | (1.28) | (3.61) | 1.68 | 1.60 |
Total from investment operations | 1.72 | (1.27) | (3.56) | 1.50 | 1.58 |
Distributions from net investment income | (.01) | (.04) | - | - | - |
Distributions from net realized gain | - | - | (.08) | - | - |
Total distributions | (.01) | (.04) | (.08) | - | - |
Net asset value, end of period | $ 9.84 | $ 8.13 | $ 9.44 | $ 13.08 | $ 11.58 |
Total ReturnB,C,D | 21.18% | (13.56)% | (27.34)% | 12.95% | 15.80% |
Ratios to Average Net AssetsH | | | | |
Expenses before expense
reductions | 8.90%A | 6.90% | 5.81% | 4.78% | 9.44%A |
Expenses net of voluntary waivers, if any | 2.77%A | 2.90% | 2.86% | 2.82% | 2.76%A |
Expenses net of all
reductions | 2.77%A | 2.87% | 2.80% | 2.80% | 2.74%A |
Net investment income (loss) | .99%A | .11% | .46% | (1.25)% | (.25)%A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 1,033 | $ 814 | $ 1,003 | $ 1,659 | $ 912 |
Portfolio turnover rate | 34%A | 132% | 111% | 52% | 50%A |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the contingent deferred sales charges. ECalculated based on average shares outstanding during the period. FInvestment income per share reflects a special dividend which amounted to $.06 per share. GFor the period December 21, 1998 (commencement of operations) to October 31, 1999. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999G |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.11 | $ 9.43 | $ 13.07 | $ 11.57 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss)E | .04 | .01 | .06F | (.18) | (.02) |
Net realized and unrealized gain (loss) | 1.68 | (1.28) | (3.62) | 1.68 | 1.59 |
Total from investment operations | 1.72 | (1.27) | (3.56) | 1.50 | 1.57 |
Distributions from net investment income | (.01) | (.05) | - | - | - |
Distributions from net realized gain | - | - | (.08) | - | - |
Total distributions | (.01) | (.05) | (.08) | - | - |
Net asset value, end of period | $ 9.82 | $ 8.11 | $ 9.43 | $ 13.07 | $ 11.57 |
Total ReturnB,C,D | 21.23% | (13.60)% | (27.36)% | 12.96% | 15.70% |
Ratios to Average Net AssetsH | | | | | |
Expenses before expense
reductions | 8.89%A | 6.88% | 5.82% | 4.76% | 9.42%A |
Expenses net of voluntary waivers, if any | 2.77%A | 2.90% | 2.86% | 2.82% | 2.76%A |
Expenses net of all
reductions | 2.77%A | 2.87% | 2.79% | 2.80% | 2.74%A |
Net investment income (loss) | .98%A | .11% | .47% | (1.25)% | (.25)%A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 873 | $ 686 | $ 759 | $ 1,165 | $ 708 |
Portfolio turnover rate | 34%A | 132% | 111% | 52% | 50%A |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the contingent deferred sales charges. ECalculated based on average shares outstanding during the period. FInvestment income per share reflects a special dividend which amounted to $.06 per share. GFor the period December 21, 1998 (commencement of operations) to October 31, 1999. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.35 | $ 9.69 | $ 13.32 | $ 11.67 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss)D | .09 | .11 | .17E | (.04) | .07 |
Net realized and unrealized gain (loss) | 1.72 | (1.30) | (3.72) | 1.69 | 1.60 |
Total from investment operations | 1.81 | (1.19) | (3.55) | 1.65 | 1.67 |
Distributions from net investment income | (.09) | (.15) | - | - | - |
Distributions from net realized gain | - | - | (.08) | - | - |
Total distributions | (.09) | (.15) | (.08) | - | - |
Net asset value, end of period | $ 10.07 | $ 8.35 | $ 9.69 | $ 13.32 | $ 11.67 |
Total ReturnB,C | 21.89% | (12.65)% | (26.77)% | 14.14% | 16.70% |
Ratios to Average Net AssetsG | | | | |
Expenses before expense
reductions | 7.49%A | 5.49% | 4.54% | 3.56% | 8.32%A |
Expenses net of voluntary waivers, if any | 1.77%A | 1.90% | 1.86% | 1.81% | 1.76%A |
Expenses net of all
reductions | 1.77%A | 1.87% | 1.80% | 1.79% | 1.74%A |
Net investment income (loss) | 1.99%A | 1.11% | 1.46% | (.25)% | .75%A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 340 | $ 285 | $ 344 | $ 524 | $ 472 |
Portfolio turnover rate | 34%A | 132% | 111% | 52% | 50%A |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DCalculated based on average shares outstanding during the period. EInvestment income per share reflects a special dividend which amounted to $.06 per share. FFor the period December 21, 1998 (commencement of operations) to October 31, 1999. GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2003 (Unaudited)
1. Significant Accounting Policies.
Fidelity Advisor Latin America Fund (the fund) is a fund of Fidelity Advisor Series VIII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
The fund offers Class A, Class T, Class B, Class C and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
The fund's 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 fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. If an event that is expected to materially affect the value of a security occurs after the close of an exchange or market on which that security trades, but prior to the NAV calculation, then that security will be fair valued taking the event into account. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
1. Significant Accounting Policies - continued
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. 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 fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, which includes amortization of premium and accretion of discount on debt securities, as required, 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.
Income Tax Information and Distributions to Shareholders. Each year the fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. Foreign taxes are provided for based on each fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Income dividends and capital gain distributions are declared separately for each class. 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. Capital accounts within the financial statements are adjusted for permanent and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due to foreign currency transactions, capital loss carryforwards and losses deferred due to wash sales.
Semiannual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investments including unrealized appreciation (depreciation) as of period end was as follows:
Unrealized appreciation | $ 629,958 | | |
Unrealized depreciation | (274,357) | |
Net unrealized appreciation (depreciation) | $ 355,601 | |
Cost for federal income tax purposes | $ 3,445,351 | |
2. Operating Policies.
Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. The custodian bank receives the collateral, which is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
3. Purchases and Sales of Investments.
Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee.
The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the fund's average net assets and a group fee rate that averaged .28% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .73% of the fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR,
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. Class A and Class T Plans also authorize the use of brokerage commissions to pay distribution expenses. In addition, FDC may pay financial intermediaries for selling shares of the fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, the total amounts paid to and retained by FDC and the amount of distribution expenses paid with brokerage commissions were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC | Paid with
Commissions |
Class A | 0% | .25% | $ 573 | $ 282 | $ - |
Class T | .25% | .25% | 2,108 | 300 | - |
Class B | .75% | .25% | 4,442 | 3,513 | - |
Class C | .75% | .25% | 3,561 | 1,576 | - |
| | | $ 10,684 | $ 5,671 | $ - |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares of the fund. FDC receives the proceeds of contingent deferred sales charge (CDSC) levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, and .25% for certain purchases of Class A and Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC | |
Class A | $ 76 | |
Class T | 267 | |
Class B* | 801 | |
Class C* | - | |
| $ 1,144 | |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the
sales are made.
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent (collectively referred to as the transfer agent) for each class of the fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the fund. FIIOC pays for typesetting, printing and mailing of all shareholder reports, except proxy statements. For the period, the following amounts were paid to FIIOC:
| Amount | % of
Average
Net Assets |
Class A | $ 1,426 | .62* |
Class T | 4,801 | 1.14* |
Class B | 3,643 | .82* |
Class C | 2,896 | .81* |
Institutional Class | 629 | .41* |
| $ 13,395 | |
* Annualized
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the fund's accounting records. The fee is based on the level of average net assets for the month plus out-of-pocket expenses.
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $490 for the period.
Brokerage Commissions. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms are shown under the caption "Other Information" at the end of the fund's Schedule of Investments.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $3.5 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 fund has agreed to pay commitment fees on its pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.
6. Expense Reductions.
FMR agreed to reimburse the classes of the fund to the extent operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, are excluded from this reimbursement.
| Expense
Limitations | Reimbursement
from adviser |
Class A | 2.00% | $ 13,629 |
Class T | 2.25% | 27,264 |
Class B | 2.75% | 27,279 |
Class C | 2.75% | 21,845 |
Institutional Class | 1.75% | 8,737 |
| | $ 98,754 |
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services may include payments of expenses on behalf of the fund to support distribution of fund shares for Class A and Class T ("Distribution Expense Reduction") and to pay other fund expenses, such as transfer agent fees ("Other Expense Reduction") collectively referred to as "Directed Brokerage" in the accompanying table. Directed brokerage generally benefits all shareholders of each class by reducing fund expenses. Each of Class A and Class T shareholders' Other Expense Reduction benefit is reduced by the amount of any Distribution Expense Reduction. In addition, through arrangements with the fund's custodian credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. All of the applicable expense reductions are noted in the table below.
| Directed
Brokerage | |
| Distribution
expense
reduction | Other
expense
reduction | Custody
expense
reduction |
Fund Level | $ | $ - | $ 8 |
Class A | - | | |
Class T | - | | |
Semiannual Report
7. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2003 | Year ended
October 31,
2002 |
From net investment income | | |
Class A | $ 4,772 | $ 7,589 |
Class T | 6,047 | 10,635 |
Class B | 1,047 | 4,189 |
Class C | 844 | 4,139 |
Institutional Class | 3,066 | 5,327 |
Total | $ 15,776 | $ 31,879 |
8. Other Information.
At the end of the period, FMR or its affiliates were the owners of record of 26% of the total outstanding shares of the fund and one unaffiliated shareholder was the owner of record of 12% of the total outstanding shares of the fund.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2003 | Year ended
October 31,
2002 | Six months ended
April 30,
2003 | Year ended
October 31,
2002 |
Class A | | | | |
Shares sold | 35,722 | 22,373 | $ 339,142 | $ 238,302 |
Reinvestment of distributions | 545 | 613 | 4,552 | 6,665 |
Shares redeemed | (20,689) | (28,099) | (188,613) | (283,276) |
Net increase (decrease) | 15,578 | (5,113) | $ 155,081 | $ (38,309) |
Class T | | | | |
Shares sold | 9,837 | 18,573 | $ 86,276 | $ 199,995 |
Reinvestment of distributions | 697 | 886 | 5,809 | 9,606 |
Shares redeemed | (13,614) | (35,507) | (115,308) | (370,145) |
Net increase (decrease) | (3,080) | (16,048) | $ (23,223) | $ (160,544) |
Class B | | | | |
Shares sold | 10,229 | 33,046 | $ 84,530 | $ 330,985 |
Reinvestment of distributions | 123 | 382 | 1,015 | 4,097 |
Shares redeemed | (5,502) | (39,558) | (47,895) | (370,618) |
Net increase (decrease) | 4,850 | (6,130) | $ 37,650 | $ (35,536) |
Class C | | | | |
Shares sold | 11,686 | 26,445 | $ 108,614 | $ 278,879 |
Reinvestment of distributions | 101 | 351 | 836 | 3,758 |
Shares redeemed | (7,419) | (22,821) | (65,033) | (232,848) |
Net increase (decrease) | 4,368 | 3,975 | $ 44,417 | $ 49,789 |
Institutional Class | | | | |
Shares sold | 8,101 | 9 | $ 71,104 | $ 100 |
Reinvestment of distributions | 356 | 478 | 3,005 | 5,226 |
Shares redeemed | (8,780) | (1,935) | (72,559) | (22,038) |
Net increase (decrease) | (323) | (1,448) | $ 1,550 | $ (16,712) |
Semiannual Report
Semiannual Report
Semiannual Report
Semiannual Report
Semiannual Report
Semiannual Report
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 International
Investment Advisors
Fidelity International
Investment Advisors
(U.K.) Limited
Fidelity Investments Japan Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agent
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
Semiannual Report
Fidelity Advisor Aggressive Growth Fund |
Fidelity Advisor Asset Allocation Fund |
Fidelity Advisor Balanced Fund |
Fidelity Advisor Biotechnology Fund |
Fidelity Advisor California Municipal Income Fund |
Fidelity Advisor Consumer Industries Fund |
Fidelity Advisor Cyclical Industries Fund |
Fidelity Advisor Developing Communications Fund |
Fidelity Advisor Diversified International Fund |
Fidelity Advisor Dividend Growth Fund |
Fidelity Advisor Dynamic Capital Appreciation Fund |
Fidelity Advisor Electronics Fund |
Fidelity Advisor Emerging Asia Fund |
Fidelity Advisor Emerging Markets Income Fund |
Fidelity Advisor Equity Growth Fund |
Fidelity Advisor Equity Income Fund |
Fidelity Advisor Equity Value Fund |
Fidelity Advisor Europe Capital Appreciation Fund |
Fidelity Advisor Fifty Fund |
Fidelity Advisor Financial Services Fund |
Fidelity Advisor Floating Rate High Income Fund |
Fidelity Advisor Global Equity Fund |
Fidelity Advisor Government Investment Fund |
Fidelity Advisor Growth & Income Fund |
Fidelity Advisor Growth Opportunities |
Fidelity Advisor Health Care Fund |
Fidelity Advisor High Income Advantage Fund |
Fidelity Advisor Inflation-Protected Bond Fund |
Fidelity Advisor High Income Fund |
Fidelity Advisor Intermediate Bond Fund |
Fidelity Advisor International Capital Appreciation Fund |
Fidelity Advisor Investment Grade Bond Fund |
Fidelity Advisor Japan Fund |
Fidelity Advisor Korea Fund |
Fidelity Advisor Large Cap Fund |
Fidelity Advisor Latin America Fund |
Fidelity Advisor Leveraged Company Stock Fund |
Fidelity Advisor Mid Cap Fund |
Fidelity Advisor Mortgage Securities Fund |
Fidelity Advisor Municipal Income Fund |
Fidelity Advisor Natural Resources Fund |
Fidelity Advisor New York Municipal Income Fund |
Fidelity Advisor Overseas Fund |
Fidelity Advisor Real Estate Fund |
Fidelity Advisor Short Fixed-Income Fund |
Fidelity Advisor Small Cap Fund |
Fidelity Advisor Strategic Growth Fund |
Fidelity Advisor Strategic Income Fund |
Fidelity Advisor Tax Managed
Stock Fund |
Fidelity Advisor Technology Fund |
Fidelity Advisor Telecommunications & Utilities Growth Fund |
Fidelity Advisor Value Strategies Fund |
Prime Fund |
Tax-Exempt Fund |
Treasury Fund |
(Fidelity Investment logo)(registered trademark)
ALAFI-USAN-0603
1.784897.100
Fidelity® Advisor
Latin America
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2003
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
| | |
| | |
| | |
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.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.
Neither the fund nor Fidelity Distributors Corporation is a bank.
For more information on any Fidelity Advisor fund, including charges and expenses, contact your investment professional for a free prospectus. Read it carefully before you invest or send money.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
This shareholder update and report on the performance of your fund is among the first to be produced under the new Sarbanes-Oxley Public Company Accounting and Investor Protection Act of 2002. This act requires that public companies certify, under penalty of law, the financial information they report to shareholders. It was adopted by Congress in reaction to several incidents of corporate malfeasance that brought the integrity of management of some publicly traded companies into question.
After the act was signed into law, the Securities and Exchange Commission interpreted it as applying to mutual funds as well as public companies. Thus, every mutual fund now is required to certify that the financial information provided in annual and semiannual reports to shareholders fully and fairly presents its financial position.
There is little doubt that the intent of Congress and regulators in this matter is a noble one - to improve the accuracy and accountability of financial reporting to investors by corporate America. We in no way condone any of the activities that brought about these requirements, and we welcome any and every reasonable proposal to strengthen investor protection and information disclosure.
That said, we are proud that mutual funds have always provided full and fair disclosure. Governed by the Investment Company Act of 1940 - and monitored and regulated by federal and state agencies, industry oversight associations, and independent directors - mutual funds are among the most transparent of all financial products. For example, the prices of mutual fund shares are established and published every business day, and the majority of members of the Board of Trustees that oversees our funds are not affiliated with the business of Fidelity. The disclosure standards of mutual funds actually have become models for governance and transparency across corporate America.
We are, of course, complying in full with the letter of this new requirement and hope that any future efforts by Congress to reassure investors about the honesty of corporate America will focus on practical and substantive solutions of genuine value to shareholders.
This sort of careful consideration was evident as Congress deliberated President Bush's tax cut package this spring, then enacted legislation that contains a variety of benefits for American families, investors and businesses. Although the final bill did not completely eliminate the tax that individual investors pay when they receive dividends from companies, it still will benefit American investors, and we applaud it in the spirit of compromise that marked the debate in Congress.
At Fidelity, we are committed to acting at all times in accordance with the highest standards of integrity and in the best interests of our fund shareholders. We are proud of the amount of information we provide to those who invest in our funds and pleased to continue that level of communication with you in these reports.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Investment Changes
Top Five Stocks as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Telefonos de Mexico SA de CV sponsored ADR (Mexico, Diversified Telecommunication Services) | 11.2 | 14.3 |
America Movil SA de CV sponsored ADR (Mexico, Wireless Telecommunication Services) | 7.6 | 5.9 |
Petroleo Brasileiro SA Petrobras (Brazil, Oil & Gas) | 6.7 | 5.4 |
Wal-Mart de Mexico SA de CV Series C
(Mexico, Multiline Retail) | 5.2 | 4.8 |
Companhia de Bebidas das Americas (AmBev) sponsored ADR (Brazil, Beverages) | 5.1 | 3.8 |
| 35.8 | |
Top Five Market Sectors as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Telecommunication Services | 25.6 | 24.7 |
Materials | 15.9 | 18.7 |
Financials | 14.0 | 11.5 |
Energy | 12.1 | 12.2 |
Consumer Staples | 11.5 | 14.7 |
Top Five Countries as of April 30, 2003 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
Brazil | 44.3 | 42.4 |
Mexico | 41.4 | 46.4 |
United Kingdom | 2.6 | 2.7 |
Chile | 2.1 | 3.2 |
Luxembourg | 1.1 | 0.0 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2003 | As of October 31, 2002 |
| Stocks 93.0% | | | Stocks 97.3% | |
| Short-Term
Investments and
Net Other Assets 7.0% | | | Short-Term
Investments and
Net Other Assets 2.7% | |
Semiannual Report
Investments April 30, 2003 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.0% |
| Shares | | Value (Note 1) |
Argentina - 0.7% |
Perez Companc SA sponsored ADR (a) | 3,577 | | $ 26,506 |
Brazil - 44.3% |
Aracruz Celulose SA sponsored ADR | 1,655 | | 34,755 |
Banco Bradesco SA: | | | |
(PN) | 13,169,800 | | 54,245 |
sponsored ADR | 2,800 | | 57,680 |
Banco Itau Holding Financeira SA (PN) | 2,402,400 | | 159,280 |
Brasil Telecom Participacoes SA sponsored ADR | 2,000 | | 70,800 |
Centrais Electricas Brasileiras (Electrobras) SA (PN-B) | 5,061,700 | | 43,210 |
Companhia Brasileira de Distribuicao Grupo Pao de Acucar sponsored ADR | 3,433 | | 49,779 |
Companhia de Bebidas das Americas (AmBev) sponsored ADR | 10,000 | | 198,900 |
Companhia Energetica Minas Gerais (CEMIG) (PN) (a) | 3,171,279 | | 33,663 |
Companhia Paranaense de Energia-Copel sponsored ADR | 3,800 | | 12,312 |
Companhia Vale do Rio Doce: | | | |
(PN-A) | 2,000 | | 53,171 |
sponsored: | | | |
ADR | 3,300 | | 92,268 |
ADR (non-vtg.) | 2,300 | | 60,720 |
Embraer - Empresa Brasileira de Aeronautica SA sponsored ADR | 2,840 | | 39,391 |
Gerdau SA sponsored ADR | 3,200 | | 38,912 |
Petroleo Brasileiro SA Petrobras: | | | |
(PN) | 5,100 | | 87,248 |
sponsored: | | | |
ADR | 7,700 | | 142,835 |
ADR (non-vtg.) | 10,100 | | 172,811 |
Tele Norte Leste Participacoes SA ADR | 10,102 | | 109,607 |
Telebras sponsored ADR | 3,300 | | 85,734 |
Uniao de Bancos Brasileiros SA (Unibanco) GDR | 3,100 | | 56,265 |
Usinas Siderurgicas de Minas Gerais SA (Usiminas) (PN-A) | 12,900 | | 48,303 |
Votorantim Celulose e Papel SA (PN) | 607,100 | | 22,774 |
TOTAL BRAZIL | | 1,724,663 |
Chile - 2.1% |
Banco Santander Chile sponsored ADR | 3,156 | | 68,864 |
Vina Concha y Toro SA sponsored ADR | 291 | | 11,276 |
TOTAL CHILE | | 80,140 |
Colombia - 0.8% |
Suramericana de Inversiones SA | 35,800 | | 31,190 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Luxembourg - 1.1% |
Tenaris SA sponsored ADR (a) | 1,884 | | $ 44,274 |
Mexico - 41.4% |
America Movil SA de CV sponsored ADR | 17,600 | | 295,152 |
Cemex SA de CV sponsored ADR | 6,719 | | 153,529 |
Consorcio ARA SA de CV (a) | 11,000 | | 20,334 |
Fomento Economico Mexicano SA de CV sponsored ADR | 3,486 | | 132,329 |
Grupo Bimbo SA de CV Series A | 9,900 | | 15,630 |
Grupo Financiero BBVA Bancomer SA Series B (a) | 135,900 | | 118,329 |
Grupo Modelo SA de CV Series C | 18,100 | | 40,440 |
Grupo Televisa SA de CV sponsored ADR (a) | 6,057 | | 183,769 |
Industrias Penoles SA de CV | 4,500 | | 8,590 |
Telefonos de Mexico SA de CV sponsored ADR | 14,362 | | 433,874 |
TV Azteca SA de CV sponsored ADR | 1,500 | | 8,700 |
Wal-Mart de Mexico SA de CV Series C | 79,805 | | 203,175 |
TOTAL MEXICO | | 1,613,851 |
United Kingdom - 2.6% |
Antofagasta PLC | 10,200 | | 102,754 |
TOTAL COMMON STOCKS (Cost $3,233,602) | 3,623,378 |
Money Market Funds - 4.6% |
| | | |
Fidelity Cash Central Fund, 1.29% (b)
(Cost $177,574) | 177,574 | | 177,574 |
TOTAL INVESTMENT PORTFOLIO - 97.6% (Cost $3,411,176) | | 3,800,952 |
NET OTHER ASSETS - 2.4% | | 94,445 |
NET ASSETS - 100% | $ 3,895,397 |
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 $554,152 and $523,565, respectively. |
The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $19 for the period. |
Income Tax Information |
At October 31, 2002, the fund had a capital loss carryforward of approximately $1,182,000 of which $842,000 and $340,000 will expire on October 31, 2009 and 2010, respectively. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| April 30, 2003 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $3,411,176) - See accompanying schedule | | $ 3,800,952 |
Cash | | 20,795 |
Receivable for fund shares sold | | 138,157 |
Dividends receivable | | 18,154 |
Interest receivable | | 105 |
Receivable from investment adviser for expense reductions | | 16,241 |
Total assets | | 3,994,404 |
| | |
Liabilities | | |
Payable for investments purchased | $ 44,918 | |
Payable for fund shares redeemed | 24,751 | |
Accrued management fee | 2,129 | |
Distribution fees payable | 1,931 | |
Other payables and accrued expenses | 25,278 | |
Total liabilities | | 99,007 |
| | |
Net Assets | | $ 3,895,397 |
Net Assets consist of: | | |
Paid in capital | | $ 4,975,607 |
Undistributed net investment income | | 12,232 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (1,482,863) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 390,421 |
Net Assets | | $ 3,895,397 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| April 30, 2003 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share
($671,129 ÷ 67,225 shares) | | $ 9.98 |
| | |
Maximum offering price per share (100/94.25 of $9.98) | | $ 10.59 |
Class T:
Net Asset Value and redemption price per share ($978,050 ÷ 98,318 shares) | | $ 9.95 |
| | |
Maximum offering price per share (100/96.50 of $9.95) | | $ 10.31 |
Class B:
Net Asset Value and offering price per share ($1,033,073 ÷ 104,999 shares) A | | $ 9.84 |
| | |
Class C:
Net Asset Value and offering price per share ($873,406 ÷ 88,910 shares) A | | $ 9.82 |
| | |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($339,739 ÷ 33,741 shares) | | $ 10.07 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
| Six months ended April 30, 2003 (Unaudited) |
| | |
Dividends | | $ 66,619 |
Interest | | 538 |
| | 67,157 |
Less foreign taxes withheld | | (6,868) |
Total income | | 60,289 |
| | |
Expenses | | |
Management fee | $ 11,784 | |
Transfer agent fees | 13,395 | |
Distribution fees | 10,684 | |
Accounting fees and expenses | 30,011 | |
Non-interested trustees' compensation | 6 | |
Custodian fees and expenses | 4,247 | |
Registration fees | 45,882 | |
Audit | 21,382 | |
Legal | 117 | |
Miscellaneous | 345 | |
Total expenses before reductions | 137,853 | |
Expense reductions | (98,762) | 39,091 |
Net investment income (loss) | | 21,198 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities | (253,484) | |
Foreign currency transactions | (4,884) | |
Total net realized gain (loss) | | (258,368) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 879,298 | |
Assets and liabilities in foreign currencies | 4,977 | |
Total change in net unrealized appreciation (depreciation) | | 884,275 |
Net gain (loss) | | 625,907 |
Net increase (decrease) in net assets resulting from operations | | $ 647,105 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended April 30, 2003
(Unaudited) | Year ended
October 31,
2002 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 21,198 | $ 18,075 |
Net realized gain (loss) | (258,368) | (355,318) |
Change in net unrealized appreciation (depreciation) | 884,275 | (156,942) |
Net increase (decrease) in net assets resulting
from operations | 647,105 | (494,185) |
Distributions to shareholders from net investment income | (15,776) | (31,879) |
Share transactions - net increase (decrease) | 215,475 | (201,312) |
Total increase (decrease) in net assets | 846,804 | (727,376) |
| | |
Net Assets | | |
Beginning of period | 3,048,593 | 3,775,969 |
End of period (including undistributed net investment income of $12,232 and undistributed net investment income of $6,810, respectively) | $ 3,895,397 | $ 3,048,593 |
Semiannual Report
See accompanying notes which are an integral part of the financial statements.
Financial Highlights - Class A
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999G |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.29 | $ 9.62 | $ 13.26 | $ 11.64 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss)E | .07 | .09 | .14F | (.07) | .05 |
Net realized and unrealized gain (loss) | 1.71 | (1.30) | (3.70) | 1.69 | 1.59 |
Total from investment operations | 1.78 | (1.21) | (3.56) | 1.62 | 1.64 |
Distributions from net investment income | (.09) | (.12) | - | - | - |
Distributions from net realized gain | - | - | (.08) | - | - |
Total distributions | (.09) | (.12) | (.08) | - | - |
Net asset value, end of period | $ 9.98 | $ 8.29 | $ 9.62 | $ 13.26 | $ 11.64 |
Total ReturnB,C,D | 21.68% | (12.87)% | (26.97)% | 13.92% | 16.40% |
Ratios to Average Net AssetsH | | | | | |
Expenses before expense
reductions | 7.95%A | 5.99% | 4.96% | 3.95% | 8.60%A |
Expenses net of voluntary waivers, if any | 2.02%A | 2.15% | 2.11% | 2.06% | 2.01%A |
Expenses net of all
reductions | 2.02%A | 2.12% | 2.05% | 2.04% | 1.99%A |
Net investment income (loss) | 1.73%A | .86% | 1.22% | (.50)% | .50%A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 671 | $ 428 | $ 546 | $ 921 | $ 756 |
Portfolio turnover rate | 34%A | 132% | 111% | 52% | 50%A |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FInvestment income per share reflects a special dividend which amounted to $.06 per share. GFor the period December 21, 1998 (commencement of operations) to October 31, 1999. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999G |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.24 | $ 9.57 | $ 13.21 | $ 11.62 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss)E | .06 | .06 | .11F | (.11) | .02 |
Net realized and unrealized gain (loss) | 1.71 | (1.30) | (3.67) | 1.70 | 1.60 |
Total from investment operations | 1.77 | (1.24) | (3.56) | 1.59 | 1.62 |
Distributions from net investment income | (.06) | (.09) | - | - | - |
Distributions from net realized gain | - | - | (.08) | - | - |
Total distributions | (.06) | (.09) | (.08) | - | - |
Net asset value, end of period | $ 9.95 | $ 8.24 | $ 9.57 | $ 13.21 | $ 11.62 |
Total ReturnB,C,D | 21.62% | (13.18)% | (27.07)% | 13.68% | 16.20% |
Ratios to Average Net AssetsH | | | | | |
Expenses before expense
reductions | 8.72%A | 6.65% | 5.48% | 4.26% | 8.92%A |
Expenses net of voluntary waivers, if any | 2.27%A | 2.40% | 2.36% | 2.32% | 2.26%A |
Expenses net of all
reductions | 2.27%A | 2.37% | 2.30% | 2.30% | 2.24%A |
Net investment income (loss) | 1.49%A | .61% | .97% | (.75)% | .25%A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 978 | $ 836 | $ 1,124 | $ 2,041 | $ 1,065 |
Portfolio turnover rate | 34%A | 132% | 111% | 52% | 50%A |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FInvestment income per share reflects a special dividend which amounted to $.06 per share. GFor the period December 21, 1998 (commencement of operations) to October 31, 1999. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999G |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.13 | $ 9.44 | $ 13.08 | $ 11.58 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss)E | .04 | .01 | .05F | (.18) | (.02) |
Net realized and unrealized gain (loss) | 1.68 | (1.28) | (3.61) | 1.68 | 1.60 |
Total from investment operations | 1.72 | (1.27) | (3.56) | 1.50 | 1.58 |
Distributions from net investment income | (.01) | (.04) | - | - | - |
Distributions from net realized gain | - | - | (.08) | - | - |
Total distributions | (.01) | (.04) | (.08) | - | - |
Net asset value, end of period | $ 9.84 | $ 8.13 | $ 9.44 | $ 13.08 | $ 11.58 |
Total ReturnB,C,D | 21.18% | (13.56)% | (27.34)% | 12.95% | 15.80% |
Ratios to Average Net AssetsH | | | | |
Expenses before expense
reductions | 8.90%A | 6.90% | 5.81% | 4.78% | 9.44%A |
Expenses net of voluntary waivers, if any | 2.77%A | 2.90% | 2.86% | 2.82% | 2.76%A |
Expenses net of all
reductions | 2.77%A | 2.87% | 2.80% | 2.80% | 2.74%A |
Net investment income (loss) | .99%A | .11% | .46% | (1.25)% | (.25)%A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 1,033 | $ 814 | $ 1,003 | $ 1,659 | $ 912 |
Portfolio turnover rate | 34%A | 132% | 111% | 52% | 50%A |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the contingent deferred sales charges. ECalculated based on average shares outstanding during the period. FInvestment income per share reflects a special dividend which amounted to $.06 per share. GFor the period December 21, 1998 (commencement of operations) to October 31, 1999. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999G |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.11 | $ 9.43 | $ 13.07 | $ 11.57 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss)E | .04 | .01 | .06F | (.18) | (.02) |
Net realized and unrealized gain (loss) | 1.68 | (1.28) | (3.62) | 1.68 | 1.59 |
Total from investment operations | 1.72 | (1.27) | (3.56) | 1.50 | 1.57 |
Distributions from net investment income | (.01) | (.05) | - | - | - |
Distributions from net realized gain | - | - | (.08) | - | - |
Total distributions | (.01) | (.05) | (.08) | - | - |
Net asset value, end of period | $ 9.82 | $ 8.11 | $ 9.43 | $ 13.07 | $ 11.57 |
Total ReturnB,C,D | 21.23% | (13.60)% | (27.36)% | 12.96% | 15.70% |
Ratios to Average Net AssetsH | | | | | |
Expenses before expense
reductions | 8.89%A | 6.88% | 5.82% | 4.76% | 9.42%A |
Expenses net of voluntary waivers, if any | 2.77%A | 2.90% | 2.86% | 2.82% | 2.76%A |
Expenses net of all
reductions | 2.77%A | 2.87% | 2.79% | 2.80% | 2.74%A |
Net investment income (loss) | .98%A | .11% | .47% | (1.25)% | (.25)%A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 873 | $ 686 | $ 759 | $ 1,165 | $ 708 |
Portfolio turnover rate | 34%A | 132% | 111% | 52% | 50%A |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the contingent deferred sales charges. ECalculated based on average shares outstanding during the period. FInvestment income per share reflects a special dividend which amounted to $.06 per share. GFor the period December 21, 1998 (commencement of operations) to October 31, 1999. HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.35 | $ 9.69 | $ 13.32 | $ 11.67 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss)D | .09 | .11 | .17E | (.04) | .07 |
Net realized and unrealized gain (loss) | 1.72 | (1.30) | (3.72) | 1.69 | 1.60 |
Total from investment operations | 1.81 | (1.19) | (3.55) | 1.65 | 1.67 |
Distributions from net investment income | (.09) | (.15) | - | - | - |
Distributions from net realized gain | - | - | (.08) | - | - |
Total distributions | (.09) | (.15) | (.08) | - | - |
Net asset value, end of period | $ 10.07 | $ 8.35 | $ 9.69 | $ 13.32 | $ 11.67 |
Total ReturnB,C | 21.89% | (12.65)% | (26.77)% | 14.14% | 16.70% |
Ratios to Average Net AssetsG | | | | |
Expenses before expense
reductions | 7.49%A | 5.49% | 4.54% | 3.56% | 8.32%A |
Expenses net of voluntary waivers, if any | 1.77%A | 1.90% | 1.86% | 1.81% | 1.76%A |
Expenses net of all
reductions | 1.77%A | 1.87% | 1.80% | 1.79% | 1.74%A |
Net investment income (loss) | 1.99%A | 1.11% | 1.46% | (.25)% | .75%A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 340 | $ 285 | $ 344 | $ 524 | $ 472 |
Portfolio turnover rate | 34%A | 132% | 111% | 52% | 50%A |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DCalculated based on average shares outstanding during the period. EInvestment income per share reflects a special dividend which amounted to $.06 per share. FFor the period December 21, 1998 (commencement of operations) to October 31, 1999. GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2003 (Unaudited)
1. Significant Accounting Policies.
Fidelity Advisor Latin America Fund (the fund) is a fund of Fidelity Advisor Series VIII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
The fund offers Class A, Class T, Class B, Class C and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
The fund's 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 fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. If an event that is expected to materially affect the value of a security occurs after the close of an exchange or market on which that security trades, but prior to the NAV calculation, then that security will be fair valued taking the event into account. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
1. Significant Accounting Policies - continued
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. 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 fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, which includes amortization of premium and accretion of discount on debt securities, as required, 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.
Income Tax Information and Distributions to Shareholders. Each year the fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. Foreign taxes are provided for based on each fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Income dividends and capital gain distributions are declared separately for each class. 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. Capital accounts within the financial statements are adjusted for permanent and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due to foreign currency transactions, capital loss carryforwards and losses deferred due to wash sales.
Semiannual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investments including unrealized appreciation (depreciation) as of period end was as follows:
Unrealized appreciation | $ 629,958 | | |
Unrealized depreciation | (274,357) | |
Net unrealized appreciation (depreciation) | $ 355,601 | |
Cost for federal income tax purposes | $ 3,445,351 | |
2. Operating Policies.
Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. The custodian bank receives the collateral, which is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
3. Purchases and Sales of Investments.
Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee.
The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the fund's average net assets and a group fee rate that averaged .28% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .73% of the fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR,
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. Class A and Class T Plans also authorize the use of brokerage commissions to pay distribution expenses. In addition, FDC may pay financial intermediaries for selling shares of the fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, the total amounts paid to and retained by FDC and the amount of distribution expenses paid with brokerage commissions were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC | Paid with
Commissions |
Class A | 0% | .25% | $ 573 | $ 282 | $ - |
Class T | .25% | .25% | 2,108 | 300 | - |
Class B | .75% | .25% | 4,442 | 3,513 | - |
Class C | .75% | .25% | 3,561 | 1,576 | - |
| | | $ 10,684 | $ 5,671 | $ - |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares of the fund. FDC receives the proceeds of contingent deferred sales charge (CDSC) levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, and .25% for certain purchases of Class A and Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC | |
Class A | $ 76 | |
Class T | 267 | |
Class B* | 801 | |
Class C* | - | |
| $ 1,144 | |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the
sales are made.
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent (collectively referred to as the transfer agent) for each class of the fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the fund. FIIOC pays for typesetting, printing and mailing of all shareholder reports, except proxy statements. For the period, the following amounts were paid to FIIOC:
| Amount | % of
Average
Net Assets |
Class A | $ 1,426 | .62* |
Class T | 4,801 | 1.14* |
Class B | 3,643 | .82* |
Class C | 2,896 | .81* |
Institutional Class | 629 | .41* |
| $ 13,395 | |
* Annualized
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the fund's accounting records. The fee is based on the level of average net assets for the month plus out-of-pocket expenses.
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $490 for the period.
Brokerage Commissions. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms are shown under the caption "Other Information" at the end of the fund's Schedule of Investments.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $3.5 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 fund has agreed to pay commitment fees on its pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.
6. Expense Reductions.
FMR agreed to reimburse the classes of the fund to the extent operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, are excluded from this reimbursement.
| Expense
Limitations | Reimbursement
from adviser |
Class A | 2.00% | $ 13,629 |
Class T | 2.25% | 27,264 |
Class B | 2.75% | 27,279 |
Class C | 2.75% | 21,845 |
Institutional Class | 1.75% | 8,737 |
| | $ 98,754 |
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services may include payments of expenses on behalf of the fund to support distribution of fund shares for Class A and Class T ("Distribution Expense Reduction") and to pay other fund expenses, such as transfer agent fees ("Other Expense Reduction") collectively referred to as "Directed Brokerage" in the accompanying table. Directed brokerage generally benefits all shareholders of each class by reducing fund expenses. Each of Class A and Class T shareholders' Other Expense Reduction benefit is reduced by the amount of any Distribution Expense Reduction. In addition, through arrangements with the fund's custodian credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. All of the applicable expense reductions are noted in the table below.
| Directed
Brokerage | |
| Distribution
expense
reduction | Other
expense
reduction | Custody
expense
reduction |
Fund Level | $ | $ - | $ 8 |
Class A | - | | |
Class T | - | | |
Semiannual Report
7. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2003 | Year ended
October 31,
2002 |
From net investment income | | |
Class A | $ 4,772 | $ 7,589 |
Class T | 6,047 | 10,635 |
Class B | 1,047 | 4,189 |
Class C | 844 | 4,139 |
Institutional Class | 3,066 | 5,327 |
Total | $ 15,776 | $ 31,879 |
8. Other Information.
At the end of the period, FMR or its affiliates were the owners of record of 26% of the total outstanding shares of the fund and one unaffiliated shareholder was the owner of record of 12% of the total outstanding shares of the fund.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2003 | Year ended
October 31,
2002 | Six months ended
April 30,
2003 | Year ended
October 31,
2002 |
Class A | | | | |
Shares sold | 35,722 | 22,373 | $ 339,142 | $ 238,302 |
Reinvestment of distributions | 545 | 613 | 4,552 | 6,665 |
Shares redeemed | (20,689) | (28,099) | (188,613) | (283,276) |
Net increase (decrease) | 15,578 | (5,113) | $ 155,081 | $ (38,309) |
Class T | | | | |
Shares sold | 9,837 | 18,573 | $ 86,276 | $ 199,995 |
Reinvestment of distributions | 697 | 886 | 5,809 | 9,606 |
Shares redeemed | (13,614) | (35,507) | (115,308) | (370,145) |
Net increase (decrease) | (3,080) | (16,048) | $ (23,223) | $ (160,544) |
Class B | | | | |
Shares sold | 10,229 | 33,046 | $ 84,530 | $ 330,985 |
Reinvestment of distributions | 123 | 382 | 1,015 | 4,097 |
Shares redeemed | (5,502) | (39,558) | (47,895) | (370,618) |
Net increase (decrease) | 4,850 | (6,130) | $ 37,650 | $ (35,536) |
Class C | | | | |
Shares sold | 11,686 | 26,445 | $ 108,614 | $ 278,879 |
Reinvestment of distributions | 101 | 351 | 836 | 3,758 |
Shares redeemed | (7,419) | (22,821) | (65,033) | (232,848) |
Net increase (decrease) | 4,368 | 3,975 | $ 44,417 | $ 49,789 |
Institutional Class | | | | |
Shares sold | 8,101 | 9 | $ 71,104 | $ 100 |
Reinvestment of distributions | 356 | 478 | 3,005 | 5,226 |
Shares redeemed | (8,780) | (1,935) | (72,559) | (22,038) |
Net increase (decrease) | (323) | (1,448) | $ 1,550 | $ (16,712) |
Semiannual Report
Semiannual Report
Semiannual Report
Semiannual Report
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
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Boston, MA
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Servicing Agent
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Semiannual Report
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(Fidelity Investment logo)(registered trademark)
ALAF-USAN-0603
1.784896.100
Fidelity® Advisor
Overseas
Fund - Institutional Class
Semiannual Report
April 30, 2003
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
| | |
| | |
| | |
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.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.
Neither the fund nor Fidelity Distributors Corporation is a bank.
For more information on any Fidelity Advisor fund, including charges and expenses, contact your investment professional for a free prospectus. Read it carefully before you invest or send money.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
This shareholder update and report on the performance of your fund is among the first to be produced under the new Sarbanes-Oxley Public Company Accounting and Investor Protection Act of 2002. This act requires that public companies certify, under penalty of law, the financial information they report to shareholders. It was adopted by Congress in reaction to several incidents of corporate malfeasance that brought the integrity of management of some publicly traded companies into question.
After the act was signed into law, the Securities and Exchange Commission interpreted it as applying to mutual funds as well as public companies. Thus, every mutual fund now is required to certify that the financial information provided in annual and semiannual reports to shareholders fully and fairly presents its financial position.
There is little doubt that the intent of Congress and regulators in this matter is a noble one - to improve the accuracy and accountability of financial reporting to investors by corporate America. We in no way condone any of the activities that brought about these requirements, and we welcome any and every reasonable proposal to strengthen investor protection and information disclosure.
That said, we are proud that mutual funds have always provided full and fair disclosure. Governed by the Investment Company Act of 1940 - and monitored and regulated by federal and state agencies, industry oversight associations, and independent directors - mutual funds are among the most transparent of all financial products. For example, the prices of mutual fund shares are established and published every business day, and the majority of members of the Board of Trustees that oversees our funds are not affiliated with the business of Fidelity. The disclosure standards of mutual funds actually have become models for governance and transparency across corporate America.
We are, of course, complying in full with the letter of this new requirement and hope that any future efforts by Congress to reassure investors about the honesty of corporate America will focus on practical and substantive solutions of genuine value to shareholders.
This sort of careful consideration was evident as Congress deliberated President Bush's tax cut package this spring, then enacted legislation that contains a variety of benefits for American families, investors and businesses. Although the final bill did not completely eliminate the tax that individual investors pay when they receive dividends from companies, it still will benefit American investors, and we applaud it in the spirit of compromise that marked the debate in Congress.
At Fidelity, we are committed to acting at all times in accordance with the highest standards of integrity and in the best interests of our fund shareholders. We are proud of the amount of information we provide to those who invest in our funds and pleased to continue that level of communication with you in these reports.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Investment Changes
Top Five Stocks as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Nomura Holdings, Inc. (Japan, Diversified Financials) | 3.3 | 3.0 |
Unilever NV (Certificaten Van Aandelen) (Netherlands, Food Products) | 2.8 | 2.6 |
Nikko Cordial Corp. (Japan, Diversified Financials) | 2.7 | 3.1 |
Credit Suisse Group (Reg.) (Switzerland, Banks) | 2.6 | 2.2 |
Vodafone Group PLC (United Kingdom, Wireless Telecommunication Services) | 2.5 | 3.6 |
| 13.9 | |
Top Five Market Sectors as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 28.7 | 27.1 |
Information Technology | 17.9 | 19.2 |
Energy | 10.5 | 9.8 |
Health Care | 10.1 | 11.4 |
Consumer Discretionary | 9.5 | 7.6 |
Top Five Countries as of April 30, 2003 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
Japan | 20.2 | 22.9 |
United Kingdom | 14.8 | 15.2 |
France | 8.4 | 9.7 |
Netherlands | 8.3 | 8.6 |
Switzerland | 8.1 | 7.9 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2003 | As of October 31, 2002 |
| Stocks and
Investment
Companies 96.2% | | | Stocks and
Investment
Companies 96.4% | |
| Bonds 0.5% | | | Bonds 0.4% | |
| Short-Term
Investments and
Net Other Assets 3.3% | | | Short-Term
Investments and
Net Other Assets 3.2% | |
Semiannual Report
Investments April 30, 2003 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.1% |
| Shares | | Value (Note 1)
(000s) |
Australia - 1.1% |
News Corp. Ltd. sponsored ADR | 495,000 | | $ 11,613 |
Belgium - 0.2% |
Fortis | 105,600 | | 1,776 |
Brazil - 0.2% |
Aracruz Celulose SA sponsored ADR | 79,200 | | 1,663 |
Canada - 3.2% |
Alcan, Inc. | 111,300 | | 3,261 |
Canadian Natural Resources Ltd. | 111,500 | | 3,718 |
EnCana Corp. | 220,400 | | 7,228 |
Falconbridge Ltd. | 33,900 | | 397 |
NOVA Chemicals Corp. | 27,200 | | 583 |
Precision Drilling Corp. (a) | 81,100 | | 2,776 |
Talisman Energy, Inc. | 362,500 | | 14,472 |
Tembec, Inc. (a) | 166,300 | | 843 |
TOTAL CANADA | | 33,278 |
Cayman Islands - 0.5% |
Noble Corp. (a) | 151,500 | | 4,689 |
Denmark - 0.6% |
Novo Nordisk AS Series B | 179,300 | | 6,502 |
Finland - 2.3% |
Nokia Corp. | 1,249,700 | | 20,708 |
Stora Enso Oyj sponsored ADR | 94,600 | | 1,029 |
UPM-Kymmene Corp. sponsored ADR | 126,000 | | 1,890 |
TOTAL FINLAND | | 23,627 |
France - 8.4% |
Alcatel SA (RFD) | 284,800 | | 2,295 |
Aventis SA (France) | 60,757 | | 3,059 |
AXA SA | 471,560 | | 7,177 |
BNP Paribas SA | 419,481 | | 19,729 |
L'Air Liquide SA | 14,900 | | 2,261 |
Pechiney SA Series A | 76,700 | | 2,217 |
Pernod-Ricard | 55,100 | | 4,846 |
Sanofi-Synthelabo SA | 43,800 | | 2,618 |
Schneider Electric SA | 28,300 | | 1,342 |
Television Francaise 1 SA | 354,400 | | 9,975 |
TotalFinaElf SA Series B | 181,697 | | 23,875 |
Vivendi Universal SA sponsored ADR | 429,900 | | 7,055 |
TOTAL FRANCE | | 86,449 |
Common Stocks - continued |
| Shares | | Value (Note 1)
(000s) |
Germany - 7.1% |
Allianz AG (Reg.) | 171,500 | | $ 12,149 |
Altana AG sponsored ADR (a) | 50,800 | | 2,499 |
BASF AG | 111,900 | | 5,001 |
Bayer AG | 199,200 | | 3,642 |
Deutsche Boerse AG | 314,901 | | 14,789 |
Deutsche Telekom AG: | | | |
(Reg.) | 187,700 | | 2,515 |
sponsored ADR | 615,200 | | 8,244 |
Infineon Technologies AG (a) | 2,062,800 | | 15,339 |
Muenchener Rueckversicherungs-Gesellschaft AG (Reg.) | 91,100 | | 9,117 |
TOTAL GERMANY | | 73,295 |
Hong Kong - 1.4% |
China Mobile (Hong Kong) Ltd. | 1,726,750 | | 3,457 |
CNOOC Ltd. | 1,285,000 | | 1,689 |
Hong Kong Exchanges & Clearing Ltd. | 2,118,000 | | 2,471 |
Hutchison Whampoa Ltd. | 1,171,700 | | 6,520 |
TOTAL HONG KONG | | 14,137 |
India - 0.6% |
Dr. Reddy's Laboratories Ltd. | 124,200 | | 2,293 |
Infosys Technologies Ltd. | 13,900 | | 820 |
Ranbaxy Laboratories Ltd. | 182,900 | | 2,609 |
Satyam Computer Services Ltd. | 241,000 | | 776 |
TOTAL INDIA | | 6,498 |
Italy - 1.5% |
Banca Intesa Spa | 892,775 | | 2,322 |
Telecom Italia Spa | 1,163,928 | | 9,435 |
Unicredito Italiano Spa | 786,900 | | 3,451 |
TOTAL ITALY | | 15,208 |
Japan - 20.2% |
Advantest Corp. | 112,800 | | 3,795 |
Canon, Inc. | 370,000 | | 14,841 |
Credit Saison Co. Ltd. | 231,900 | | 4,379 |
Daikin Industries Ltd. | 58,000 | | 968 |
Daiwa Securities Group, Inc. | 5,798,000 | | 22,871 |
Fuji Photo Film Co. Ltd. | 66,000 | | 1,688 |
Ito-Yokado Co. Ltd. | 400,400 | | 9,446 |
JAFCO Co. Ltd. | 162,700 | | 5,898 |
Japan Telecom Holdings Co. Ltd. | 766 | | 2,100 |
Common Stocks - continued |
| Shares | | Value (Note 1)
(000s) |
Japan - continued |
KDDI Corp. | 1,666 | | $ 5,072 |
Keyence Corp. | 1,200 | | 193 |
Kyocera Corp. | 99,300 | | 4,861 |
Matsushita Electric Industrial Co. Ltd. | 249,200 | | 1,979 |
Mizuho Financial Group, Inc. (a) | 1,228 | | 658 |
Murata Manufacturing Co. Ltd. | 170,500 | | 6,095 |
Nikko Cordial Corp. | 10,347,000 | | 27,848 |
Nikon Corp. (a) | 313,000 | | 2,093 |
Nintendo Co. Ltd. | 52,900 | | 4,147 |
Nissan Motor Co. Ltd. | 688,650 | | 5,279 |
Nomura Holdings, Inc. | 3,414,000 | | 33,912 |
ORIX Corp. | 189,600 | | 8,691 |
Rohm Co. Ltd. | 84,100 | | 8,693 |
Shin-Etsu Chemical Co. Ltd. | 147,100 | | 4,417 |
SMC Corp. | 12,900 | | 974 |
Sony Corp. | 119,100 | | 2,947 |
Sumitomo Electric Industries Ltd. | 556,000 | | 3,119 |
Sumitomo Mitsui Financial Group, Inc. | 530 | | 834 |
Takeda Chemical Industries Ltd. | 186,900 | | 6,870 |
Tokyo Electron Ltd. | 232,800 | | 8,752 |
Toshiba Corp. | 558,000 | | 1,492 |
Toyota Motor Corp. | 168,700 | | 3,819 |
TOTAL JAPAN | | 208,731 |
Korea (South) - 2.1% |
Kookmin Bank | 20,870 | | 586 |
KT Corp. sponsored ADR | 101,400 | | 2,052 |
Samsung Electronics Co. Ltd. | 73,080 | | 18,353 |
Shinsegae Co. Ltd. | 3,700 | | 442 |
TOTAL KOREA (SOUTH) | | 21,433 |
Mexico - 1.7% |
Grupo Televisa SA de CV sponsored ADR (a) | 218,700 | | 6,635 |
Telefonos de Mexico SA de CV sponsored ADR | 307,600 | | 9,293 |
TV Azteca SA de CV sponsored ADR | 271,900 | | 1,577 |
TOTAL MEXICO | | 17,505 |
Netherlands - 7.9% |
Akzo Nobel NV | 109,000 | | 2,428 |
ASML Holding NV (a) | 1,937,700 | | 16,771 |
ING Groep NV (Certificaten Van Aandelen) | 897,946 | | 14,609 |
Koninklijke Ahold NV | 593,100 | | 2,719 |
Common Stocks - continued |
| Shares | | Value (Note 1)
(000s) |
Netherlands - continued |
Koninklijke Philips Electronics NV | 348,700 | | $ 6,500 |
STMicroelectronics NV (NY Shares) | 61,500 | | 1,266 |
Unilever NV (Certificaten Van Aandelen) | 463,400 | | 29,251 |
VNU NV | 247,800 | | 7,204 |
Wolters Kluwer NV (Certificaten Van Aandelen) | 82,100 | | 1,071 |
TOTAL NETHERLANDS | | 81,819 |
Norway - 0.7% |
Norsk Hydro AS | 70,600 | | 2,987 |
Statoil ASA | 503,500 | | 3,994 |
TOTAL NORWAY | | 6,981 |
Russia - 0.6% |
JSC MMC 'Norilsk Nickel' sponsored ADR | 91,600 | | 2,084 |
YUKOS Corp. sponsored ADR | 26,600 | | 4,655 |
TOTAL RUSSIA | | 6,739 |
Singapore - 0.5% |
Flextronics International Ltd. (a) | 600,400 | | 5,254 |
Spain - 2.9% |
Altadis SA (Spain) | 225,900 | | 5,835 |
Banco Popular Espanol SA (Reg.) | 133,700 | | 6,494 |
Banco Santander Central Hispano SA | 1,223,960 | | 9,635 |
NH Hoteles SA (a) | 269,500 | | 2,426 |
Telefonica SA | 525,754 | | 5,826 |
TOTAL SPAIN | | 30,216 |
Sweden - 1.3% |
Nordea AB | 886,300 | | 4,717 |
Telefonaktiebolaget LM Ericsson ADR (a) | 993,100 | | 8,997 |
TOTAL SWEDEN | | 13,714 |
Switzerland - 8.1% |
Converium Holding AG | 58,670 | | 2,653 |
Credit Suisse Group (Reg.) | 1,118,392 | | 26,754 |
Nestle SA (Reg.) | 25,652 | | 5,237 |
Novartis AG (Reg.) | 511,190 | | 20,192 |
Roche Holding AG (participation certificate) | 186,300 | | 11,871 |
Swiss Reinsurance Co. (Reg.) | 124,681 | | 8,156 |
Common Stocks - continued |
| Shares | | Value (Note 1)
(000s) |
Switzerland - continued |
UBS AG (Reg.) | 141,604 | | $ 6,728 |
Zurich Financial Services AG | 17,080 | | 1,803 |
TOTAL SWITZERLAND | | 83,394 |
Taiwan - 1.2% |
ASUSTeK Computer, Inc. | 964,000 | | 1,881 |
Hon Hai Precision Industries Co. Ltd. | 356,000 | | 1,113 |
Taiwan Semiconductor Manufacturing Co. Ltd. (a) | 4,738,754 | | 6,500 |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR (a) | 99,700 | | 834 |
Winbond Electronics Corp. (a) | 7,224,000 | | 2,467 |
TOTAL TAIWAN | | 12,795 |
United Kingdom - 14.8% |
3i Group PLC | 621,116 | | 4,622 |
Abbey National PLC | 325,500 | | 2,315 |
Amvescap PLC | 810,700 | | 4,411 |
AstraZeneca PLC (United Kingdom) | 380,300 | | 15,163 |
BHP Billiton PLC | 275,100 | | 1,409 |
BP PLC | 2,700,700 | | 17,347 |
British Sky Broadcasting Group PLC (BSkyB) (a) | 579,900 | | 6,018 |
Cable & Wireless PLC | 1,141,600 | | 1,375 |
Carlton Communications PLC | 744,900 | | 1,252 |
Centrica PLC | 714,600 | | 1,901 |
Diageo PLC | 133,050 | | 1,478 |
GlaxoSmithKline PLC | 1,148,269 | | 23,264 |
HBOS PLC | 390,200 | | 4,577 |
HSBC Holdings PLC (United Kingdom) (Reg.) | 759,900 | | 8,312 |
Kingfisher PLC | 1,177,100 | | 4,606 |
Lloyds TSB Group PLC | 421,400 | | 2,775 |
Prudential PLC | 1,137,300 | | 6,971 |
Reckitt Benckiser PLC | 167,500 | | 2,958 |
Reed Elsevier PLC | 380,300 | | 3,037 |
Rio Tinto PLC (Reg.) | 257,600 | | 4,930 |
Schroders PLC | 81,400 | | 792 |
Shire Pharmaceuticals Group PLC sponsored ADR (a) | 161,400 | | 3,212 |
Tesco PLC | 1,549,000 | | 4,908 |
Vodafone Group PLC | 13,042,516 | | 25,772 |
TOTAL UNITED KINGDOM | | 153,405 |
United States of America - 7.0% |
Baker Hughes, Inc. | 160,600 | | 4,497 |
Common Stocks - continued |
| Shares | | Value (Note 1)
(000s) |
United States of America - continued |
BJ Services Co. (a) | 67,100 | | $ 2,450 |
ENSCO International, Inc. | 208,400 | | 5,293 |
Freeport-McMoRan Copper & Gold, Inc. Class B | 219,650 | | 3,802 |
Grant Prideco, Inc. (a) | 306,200 | | 3,494 |
Micron Technology, Inc. (a) | 1,859,530 | | 15,806 |
Motorola, Inc. | 2,084,600 | | 16,489 |
NTL, Inc. (a) | 69,800 | | 1,187 |
Smith International, Inc. (a) | 20,000 | | 711 |
Synthes-Stratec, Inc. | 6,239 | | 3,939 |
Transocean, Inc. | 118,500 | | 2,257 |
Tyco International Ltd. | 689,300 | | 10,753 |
Weatherford International Ltd. (a) | 40,900 | | 1,645 |
TOTAL UNITED STATES OF AMERICA | | 72,323 |
TOTAL COMMON STOCKS (Cost $1,123,978) | 993,044 |
Nonconvertible Preferred Stocks - 0.1% |
| | | |
Italy - 0.1% |
Telecom Italia Spa Risp (non-vtg.)
(Cost $758) | 187,300 | | 920 |
Investment Companies - 0.0% |
| | | |
Multi-National - 0.0% |
European Warrant Fund, Inc.
(Cost $2,116) | 163,500 | | 343 |
Corporate Bonds - 0.5% |
| Principal
Amount (000s) | | |
Convertible Bonds - 0.4% |
Netherlands - 0.4% |
Koninklijke Ahold NV: | | | | |
3% 9/30/03 | NLG | 6,090 | | 2,781 |
4% 5/19/05 | EUR | 1,040 | | 906 |
TOTAL NETHERLANDS | | 3,687 |
Corporate Bonds - continued |
| Principal
Amount (000s) | | Value (Note 1)
(000s) |
Nonconvertible Bonds - 0.1% |
Netherlands - 0.0% |
Koninklijke Ahold NV 5.875% 5/9/08 | EUR | 690 | | $ 611 |
United States of America - 0.1% |
Ahold Finance USA, Inc. euro 6.375% 6/8/05 | EUR | 690 | | 677 |
TOTAL NONCONVERTIBLE BONDS | | 1,288 |
TOTAL CORPORATE BONDS (Cost $4,618) | 4,975 |
Money Market Funds - 19.1% |
| Shares | | |
Fidelity Cash Central Fund, 1.29% (b) | 37,356,654 | | 37,357 |
Fidelity Securities Lending Cash Central Fund, 1.3% (b) | 160,421,464 | | 160,421 |
TOTAL MONEY MARKET FUNDS (Cost $197,778) | 197,778 |
TOTAL INVESTMENT PORTFOLIO - 115.8% (Cost $1,329,248) | | 1,197,060 |
NET OTHER ASSETS - (15.8)% | | (163,767) |
NET ASSETS - 100% | $ 1,033,293 |
Currency Abbreviations |
EUR | - | European Monetary Unit |
NLG | - | Dutch guilder |
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 $363,625,000 and $418,240,000, respectively. |
The fund participated in the interfund lending program as a borrower. The average daily loan balance during the period for which the loans were outstanding amounted to $6,560,000. The weighted average interest rate was 1.37%. At period end there were no interfund loans outstanding. |
Income Tax Information |
At October 31, 2002, the fund had a capital loss carryforward of approximately $408,929,000 of which $263,932,000 and $144,997,000 will expire on October 31, 2009 and 2010, respectively. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | April 30, 2003 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $153,077) (cost $1,329,248) - See accompanying schedule | | $ 1,197,060 |
Foreign currency held at value (cost $8,258) | | 8,211 |
Receivable for investments sold | | 3,602 |
Receivable for fund shares sold | | 1,929 |
Dividends receivable | | 4,371 |
Interest receivable | | 224 |
Other receivables | | 128 |
Total assets | | 1,215,525 |
| | |
Liabilities | | |
Payable to custodian bank | $ 16 | |
Payable for investments purchased | 11,830 | |
Payable for fund shares redeemed | 8,849 | |
Accrued management fee | 444 | |
Distribution fees payable | 414 | |
Other payables and accrued expenses | 258 | |
Collateral on securities loaned, at value | 160,421 | |
Total liabilities | | 182,232 |
| | |
Net Assets | | $ 1,033,293 |
Net Assets consist of: | | |
Paid in capital | | 1,672,147 |
Undistributed net investment income | | 1,013 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (507,709) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (132,158) |
Net Assets | | $ 1,033,293 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | April 30, 2003 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share
($47,302 ÷ 4,457 shares) | | $ 10.61 |
| | |
Maximum offering price per share (100/94.25 of $10.61) | | $ 11.26 |
Class T:
Net Asset Value and redemption price per share ($850,769 ÷ 79,019 shares) | | $ 10.77 |
| | |
Maximum offering price per share (100/96.50 of $10.77) | | $ 11.16 |
Class B:
Net Asset Value and offering price per share ($46,193 ÷ 4,499 shares) A | | $ 10.27 |
| | |
Class C:
Net Asset Value and offering price per share ($31,906 ÷ 3,057 shares) A | | $ 10.44 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($57,123 ÷ 5,322 shares) | | $ 10.73 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended April 30, 2003 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 10,029 |
Interest | | 462 |
Security lending | | 290 |
| | 10,781 |
Less foreign taxes withheld | | (1,235) |
Total income | | 9,546 |
| | |
Expenses | | |
Management fee
Basic fee | $ 3,818 | |
Performance adjustment | (901) | |
Transfer agent fees | 1,556 | |
Distribution fees | 2,624 | |
Accounting and security lending fees | 275 | |
Non-interested trustees' compensation | 2 | |
Custodian fees and expenses | 199 | |
Registration fees | 48 | |
Audit | 46 | |
Legal | 41 | |
Interest | 1 | |
Miscellaneous | 5 | |
Total expenses before reductions | 7,714 | |
Expense reductions | (213) | 7,501 |
Net investment income (loss) | | 2,045 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities | (72,380) | |
Foreign currency transactions | (87) | |
Total net realized gain (loss) | | (72,467) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 34,639 | |
Assets and liabilities in foreign currencies | 89 | |
Total change in net unrealized appreciation (depreciation) | | 34,728 |
Net gain (loss) | | (37,739) |
Net increase (decrease) in net assets resulting from operations | | $ (35,694) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended
April 30, 2003
(Unaudited) | Year ended
October 31,
2002 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 2,045 | $ (934) |
Net realized gain (loss) | (72,467) | (146,183) |
Change in net unrealized appreciation (depreciation) | 34,728 | (54,978) |
Net increase (decrease) in net assets resulting
from operations | (35,694) | (202,095) |
Share transactions - net increase (decrease) | (56,835) | (103,769) |
Total increase (decrease) in net assets | (92,529) | (305,864) |
| | |
Net Assets | | |
Beginning of period | 1,125,822 | 1,431,686 |
End of period (including undistributed net investment income of $1,013 and distributions in excess of net investment income of $1,032, respectively) | $ 1,033,293 | $ 1,125,822 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 | 1998 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.01 | $ 12.90 | $ 19.88 | $ 20.59 | $ 16.32 | $ 16.89 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .03 | .01 | .06 | .06 F | .10 | .09 |
Net realized and unrealized gain (loss) | (.43) | (1.90) | (4.89) | .38 | 4.42 | .51 |
Total from investment operations | (.40) | (1.89) | (4.83) | .44 | 4.52 | .60 |
Distributions from net investment income | - | - | (.43) | (.08) | (.11) | (.21) |
Distributions in excess of net investment income | - | - | - | (.09) | - | - |
Distributions from net realized gain | - | - | (1.72) | (.98) | (.14) | (.96) |
Total distributions | - | - | (2.15) | (1.15) | (.25) | (1.17) |
Net asset value, end of period | $ 10.61 | $ 11.01 | $ 12.90 | $ 19.88 | $ 20.59 | $ 16.32 |
Total Return B,C,D | (3.63)% | (14.65)% | (27.16)% | 1.78% | 28.05% | 3.73% |
Ratios to Average Net Assets G | | | | | |
Expenses before expense reductions | 1.35% A | 1.56% | 1.46% | 1.49% | 1.55% | 1.68% |
Expenses net of voluntary waivers, if any | 1.35% A | 1.56% | 1.46% | 1.49% | 1.55% | 1.55% |
Expenses net of all reductions | 1.31% A | 1.52% | 1.41% | 1.46% | 1.52% | 1.54% |
Net investment income (loss) | .53% A | .07% | .40% | .28% | .57% | .51% |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 47 | $ 44 | $ 46 | $ 44 | $ 23 | $ 12 |
Portfolio turnover rate | 72% A | 73% | 99% | 132% | 85% | 74% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Investment income per share reflects a special dividend which amounted to $.04 per share. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 | 1998 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 11.18 | $ 13.11 | $ 20.13 | $ 20.83 | $ 16.48 | $ 17.02 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .02 | (.01) | .04 | .02 F | .07 | .06 |
Net realized and unrealized gain (loss) | (.43) | (1.92) | (4.99) | .39 | 4.46 | .52 |
Total from investment operations | (.41) | (1.93) | (4.95) | .41 | 4.53 | .58 |
Distributions from net investment income | - | - | (.35) | (.06) | (.04) | (.16) |
Distributions in excess of net investment income | - | - | - | (.07) | - | - |
Distributions from net realized gain | - | - | (1.72) | (.98) | (.14) | (.96) |
Total distributions | - | - | (2.07) | (1.11) | (.18) | (1.12) |
Net asset value, end of period | $ 10.77 | $ 11.18 | $ 13.11 | $ 20.13 | $ 20.83 | $ 16.48 |
Total Return B,C,D | (3.67)% | (14.72)% | (27.33)% | 1.62% | 27.74% | 3.57% |
Ratios to Average Net Assets G | | | | | |
Expenses before expense reductions | 1.46% A | 1.68% | 1.62% | 1.67% | 1.72% | 1.74% |
Expenses net of voluntary waivers, if any | 1.46% A | 1.68% | 1.62% | 1.67% | 1.72% | 1.74% |
Expenses net of all
reductions | 1.42% A | 1.64% | 1.57% | 1.65% | 1.69% | 1.72% |
Net investment income (loss) | .42% A | (.05) % | .24% | .10% | .39% | .35% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 851 | $ 928 | $ 1,185 | $ 1,678 | $ 1,480 | $ 1,086 |
Portfolio turnover rate | 72% A | 73% | 99% | 132% | 85% | 74% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Investment income per share reflects a special dividend which amounted to $.04 per share. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 | 1998 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.71 | $ 12.63 | $ 19.49 | $ 20.25 | $ 16.08 | $ 16.69 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | (.08) | (.06) | (.11) F | (.03) | (.03) |
Net realized and unrealized gain (loss) | (.42) | (1.84) | (4.83) | .39 | 4.34 | .51 |
Total from investment operations | (.44) | (1.92) | (4.89) | .28 | 4.31 | .48 |
Distributions from net investment income | - | - | (.25) | (.03) | - | (.13) |
Distributions in excess of net investment income | - | - | - | (.03) | - | - |
Distributions from net realized gain | - | - | (1.72) | (.98) | (.14) | (.96) |
Total distributions | - | - | (1.97) | (1.04) | (.14) | (1.09) |
Net asset value, end of period | $ 10.27 | $ 10.71 | $ 12.63 | $ 19.49 | $ 20.25 | $ 16.08 |
Total Return B,C,D | (4.11)% | (15.20)% | (27.83)% | 1.02% | 27.00% | 3.00% |
Ratios to Average Net Assets G | | | | | |
Expenses before expense reductions | 2.28% A | 2.43% | 2.27% | 2.27% | 2.30% | 2.34% |
Expenses net of voluntary waivers, if any | 2.28% A | 2.30% | 2.27% | 2.27% | 2.29% | 2.30% |
Expenses net of all
reductions | 2.24% A | 2.26% | 2.23% | 2.25% | 2.26% | 2.29% |
Net investment income (loss) | (.40)% A | (.66)% | (.42)% | (.50)% | (.18)% | (.19)% |
Supplemental Data | | | | | |
Net assets, end of
period (in millions) | $ 46 | $ 53 | $ 80 | $ 125 | $ 89 | $ 58 |
Portfolio turnover rate | 72% A | 73% | 99% | 132% | 85% | 74% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Investment income per share reflects a special dividend which amounted to $.04 per share.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 | 1998 H |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.88 | $ 12.84 | $ 19.80 | $ 20.58 | $ 16.37 | $ 17.23 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | (.08) | (.05) | (.10) F | (.02) | (.03) |
Net realized and unrealized gain (loss) | (.42) | (1.88) | (4.89) | .39 | 4.43 | .29 |
Total from investment operations | (.44) | (1.96) | (4.94) | .29 | 4.41 | .26 |
Distributions from net investment income | - | - | (.30) | (.04) | (.06) | (.16) |
Distributions in excess of net investment income | - | - | - | (.05) | - | - |
Distributions from net realized gain | - | - | (1.72) | (.98) | (.14) | (.96) |
Total distributions | - | - | (2.02) | (1.07) | (.20) | (1.12) |
Net asset value, end of period | $ 10.44 | $ 10.88 | $ 12.84 | $ 19.80 | $ 20.58 | $ 16.37 |
Total Return B,C,D | (4.04)% | (15.26)% | (27.70)% | 1.05% | 27.21% | 2.84% |
Ratios to Average Net Assets G | | | | | |
Expenses before expense reductions | 2.17% A | 2.34% | 2.19% | 2.22% | 2.25% | 2.49% A |
Expenses net of voluntary waivers, if any | 2.17% A | 2.30% | 2.19% | 2.22% | 2.25% | 2.30% A |
Expenses net of all
reductions | 2.13% A | 2.26% | 2.14% | 2.20% | 2.22% | 2.30% A |
Net investment income (loss) | (.30)% A | (.66)% | (.34)% | (.45)% | (.13)% | (.20)% A |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 32 | $ 36 | $ 52 | $ 76 | $ 35 | $ 15 |
Portfolio turnover rate | 72% A | 73% | 99% | 132% | 85% | 74% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Investment income per share reflects a special dividend which amounted to $.04 per share.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H For the period November 3, 1997 (commencement of sale of shares) to October 31, 1998. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 | 1998 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.11 | $ 12.97 | $ 19.95 | $ 20.62 | $ 16.36 | $ 16.92 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .05 | .06 | .12 | .14 E | .17 | .13 |
Net realized and unrealized gain (loss) | (.43) | (1.92) | (4.91) | .38 | 4.39 | .53 |
Total from investment operations | (.38) | (1.86) | (4.79) | .52 | 4.56 | .66 |
Distributions from net investment income | - | - | (.47) | (.10) | (.16) | (.26) |
Distributions in excess of net investment income | - | - | - | (.11) | - | - |
Distributions from net realized gain | - | - | (1.72) | (.98) | (.14) | (.96) |
Total distributions | - | - | (2.19) | (1.19) | (.30) | (1.22) |
Net asset value, end of period | $ 10.73 | $ 11.11 | $ 12.97 | $ 19.95 | $ 20.62 | $ 16.36 |
Total Return B,C | (3.42)% | (14.34)% | (26.89)% | 2.18% | 28.30% | 4.11% |
Ratios to Average Net Assets F | | | | | |
Expenses before expense reductions | .92% A | 1.14% | 1.06% | 1.13% | 1.18% | 1.26% |
Expenses net of voluntary waivers, if any | .92% A | 1.14% | 1.06% | 1.13% | 1.18% | 1.26% |
Expenses net of all reductions | .87% A | 1.10% | 1.02% | 1.11% | 1.15% | 1.24% |
Net investment income (loss) | .96% A | .49% | .79% | .63% | .94% | .76% |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 57 | $ 63 | $ 69 | $ 90 | $ 90 | $ 77 |
Portfolio turnover rate | 72% A | 73% | 99% | 132% | 85% | 74% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D 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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2003 (Unaudited)
(Amounts in thousands except ratios)
1. Significant Accounting Policies.
Fidelity Advisor Overseas Fund (the fund) is a fund of Fidelity Advisor Series VIII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
The fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
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 fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. Debt securities for which quotations are readily available are valued at their most recent bid prices (sales prices if the principal market is an exchange) in the principal market in which such securities are normally traded, as determined by recognized dealers in such securities, or securities are valued on the basis of information provided by a pricing service. Pricing services use valuation matrices that incorporate both dealer-supplied valuations and electronic data processing techniques. If an event that is expected to materially affect the value of a security occurs after the close of an exchange or market on which that security trades, but prior to the NAV calculation, then that security will be fair valued taking the event into account. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
1. Significant Accounting Policies - continued
Security Valuation - continued
Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. 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 fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, which includes amortization of premium and accretion of discount on debt securities, as required, 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.
Income Tax Information and Distributions to Shareholders. Each year the fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. Foreign taxes are provided for based on each fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Income dividends and capital gain distributions are declared separately for each class. Distributions are recorded on the ex-dividend date.
Semiannual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Capital accounts within the financial statements are adjusted for permanent and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due to futures transactions, foreign currency transactions, passive foreign investment companies (PFIC), market discount, capital loss carryforwards, and losses deferred due to wash sales.
The federal tax cost of investments including unrealized appreciation (depreciation) as of period end was as follows:
Unrealized appreciation | $ 104,401 | | |
Unrealized depreciation | (258,029) | |
Net unrealized appreciation (depreciation) | $ (153,628) | |
Cost for federal income tax purposes | $ 1,350,688 | |
2. Operating Policies.
Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. The custodian bank receives the collateral, which is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
3. Purchases and Sales of Investments.
Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
4. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the fund's average net assets and a group fee rate that averaged .28% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ±.20% of the fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the investment performance of the asset-weighted return of all classes as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .56% of the fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. Class A and Class T Plans also authorize the use of brokerage commissions to pay distribution expenses. In addition, FDC may pay financial intermediaries for selling shares of the fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, the total amounts paid to and retained by FDC and the amount of distribution expenses paid with brokerage commissions were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC | Paid with
Commissions |
Class A | .01% | .25% | $ 60 | $ 1 | $ 1 |
Class T | .26% | .25% | 2,149 | 30 | 23 |
Class B | .75% | .25% | 244 | 183 | |
Class C | .75% | .25% | 171 | 9 |
|
| | | $ 2,624 | $ 223 | $ 24 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares of the fund. FDC receives the proceeds of contingent deferred sales charge (CDSC) levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, and .25% for certain purchases of Class A and Class T shares.
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 6,156 |
Class T | 7,375 |
Class B* | 73,528 |
Class C* | 8,856 |
| $ 95,915 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the
sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent (collectively referred to as the transfer agent) for each class of the fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the fund. FIIOC pays for typesetting, printing and mailing of all shareholder reports, except proxy statements. For the period, the following amounts were paid to FIIOC:
| Amount | % of
Average
Net Assets |
Class A | $ 97 | .41* |
Class T | 1,158 | .27* |
Class B | 146 | .60* |
Class C | 85 | .49* |
Institutional Class | 70 | .24* |
| $ 1,556 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the 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.
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
4. Fees and Other Transactions with Affiliates - continued
Central Funds - continued
earned by the fund are recorded as income in the accompanying financial statements and totaled $241 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the fund, 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 the fund's participation in the program is included under the caption "Other Information" at the end of the fund's Schedule of Investments.
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $3.5 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 fund has agreed to pay commitment fees on its pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.
6. Security Lending.
The fund lends portfolio securities from time to time in order to earn additional income. The 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 fund and any additional required collateral is delivered to the fund 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 the fund's Statement of Assets and Liabilities.
7. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services may include payments of expenses on behalf of the fund to support distribution of fund shares for Class A and Class T ("Distribution Expense Reduction") and to pay other fund expenses, such as transfer agent fees ("Other Expense Reduction") collectively referred to as "Directed Brokerage" in the accompanying table. Directed brokerage generally benefits all
Semiannual Report
7. Expense Reductions - continued
shareholders of each class by reducing fund expenses. Each of Class A and Class T shareholders' Other Expense Reduction benefit is reduced by the amount of any Distribution Expense Reduction. In addition, through arrangements with the fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. All of the applicable expense reductions are noted in the table below.
| Directed Brokerage | |
| Distribution
expense reduction | Other
expense reduction | Custody
expense reduction |
| | | |
Fund Level | $ | $ 188 | $ 1 |
Class A | 1 | - | - |
Class T | 23 | - | - |
| $ 24 | $ 188 | $ 1 |
8. Other Information.
At the end of the period, one unaffiliated shareholder was the owner of record of 27% of the total outstanding shares of the fund.
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2003 | Year ended
October 31,
2002 | Six months ended
April 30,
2003 | Year ended
October 31,
2002 |
Class A | | | | |
Shares sold | 5,695 | 9,250 | $ 60,099 | $ 120,262 |
Shares redeemed | (5,278) | (8,748) | (55,670) | (114,908) |
Net increase (decrease) | 417 | 502 | $ 4,429 | $ 5,354 |
Class T | | | | |
Shares sold | 18,543 | 34,800 | $ 198,486 | $ 449,377 |
Shares redeemed | (22,568) | (42,125) | (247,502) | (538,683) |
Net increase (decrease) | (4,025) | (7,325) | $ (49,016) | $ (89,306) |
Class B | | | | |
Shares sold | 238 | 738 | $ 2,436 | $ 9,282 |
Shares redeemed | (730) | (2,060) | (7,466) | (25,749) |
Net increase (decrease) | (492) | (1,322) | $ (5,030) | $ (16,467) |
Class C | | | | |
Shares sold | 618 | 967 | $ 6,601 | $ 12,444 |
Shares redeemed | (907) | (1,683) | (9,588) | (21,549) |
Net increase (decrease) | (289) | (716) | $ (2,987) | $ (9,105) |
Institutional Class | | | | |
Shares sold | 3,815 | 5,939 | $ 40,404 | $ 77,765 |
Shares redeemed | (4,171) | (5,590) | (44,635) | (72,010) |
Net increase (decrease) | (356) | 349 | $ (4,231) | $ 5,755 |
Semiannual Report
Semiannual Report
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
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agent
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
Semiannual Report
Fidelity Advisor Aggressive Growth Fund |
Fidelity Advisor Asset Allocation Fund |
Fidelity Advisor Balanced Fund |
Fidelity Advisor Biotechnology Fund |
Fidelity Advisor California Municipal Income Fund |
Fidelity Advisor Consumer Industries Fund |
Fidelity Advisor Cyclical Industries Fund |
Fidelity Advisor Developing Communications Fund |
Fidelity Advisor Diversified International Fund |
Fidelity Advisor Dividend Growth Fund |
Fidelity Advisor Dynamic Capital Appreciation Fund |
Fidelity Advisor Electronics Fund |
Fidelity Advisor Emerging Asia Fund |
Fidelity Advisor Emerging Markets Income Fund |
Fidelity Advisor Equity Growth Fund |
Fidelity Advisor Equity Income Fund |
Fidelity Advisor Equity Value Fund |
Fidelity Advisor Europe Capital Appreciation Fund |
Fidelity Advisor Fifty Fund |
Fidelity Advisor Financial Services Fund |
Fidelity Advisor Floating Rate High Income Fund |
Fidelity Advisor Global Equity Fund |
Fidelity Advisor Government Investment Fund |
Fidelity Advisor Growth & Income Fund |
Fidelity Advisor Growth Opportunities |
Fidelity Advisor Health Care Fund |
Fidelity Advisor High Income Advantage Fund |
Fidelity Advisor High Income Fund |
Fidelity Advisor Inflation-Protected Bond Fund |
Fidelity Advisor Intermediate Bond Fund |
Fidelity Advisor International Capital Appreciation Fund |
Fidelity Advisor Investment Grade Bond Fund |
Fidelity Advisor Japan Fund |
Fidelity Advisor Korea Fund |
Fidelity Advisor Large Cap Fund |
Fidelity Advisor Latin America Fund |
Fidelity Advisor Leveraged Company Stock Fund |
Fidelity Advisor Mid Cap Fund |
Fidelity Advisor Mortgage Securities Fund |
Fidelity Advisor Municipal Income Fund |
Fidelity Advisor Natural Resources Fund |
Fidelity Advisor New York Municipal Income Fund |
Fidelity Advisor Overseas Fund |
Fidelity Advisor Real Estate Fund |
Fidelity Advisor Short Fixed-Income Fund |
Fidelity Advisor Small Cap Fund |
Fidelity Advisor Strategic Growth Fund |
Fidelity Advisor Strategic Income Fund |
Fidelity Advisor Tax Managed
Stock Fund |
Fidelity Advisor Technology Fund |
Fidelity Advisor Telecommunications & Utilities Growth Fund |
Fidelity Advisor Value Strategies Fund |
Prime Fund |
Tax-Exempt Fund |
Treasury Fund |
(Fidelity Investment logo)(registered trademark)
OSI-USAN-0603
1.784904.100
Fidelity® Advisor
Overseas
Fund - Class A, Class T, Class B and Class C
Semiannual Report
April 30, 2003
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
| | |
| | |
| | |
| | |
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.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.
Neither the fund nor Fidelity Distributors Corporation is a bank.
For more information on any Fidelity Advisor fund, including charges and expenses, contact your investment professional for a free prospectus. Read it carefully before you invest or send money.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
This shareholder update and report on the performance of your fund is among the first to be produced under the new Sarbanes-Oxley Public Company Accounting and Investor Protection Act of 2002. This act requires that public companies certify, under penalty of law, the financial information they report to shareholders. It was adopted by Congress in reaction to several incidents of corporate malfeasance that brought the integrity of management of some publicly traded companies into question.
After the act was signed into law, the Securities and Exchange Commission interpreted it as applying to mutual funds as well as public companies. Thus, every mutual fund now is required to certify that the financial information provided in annual and semiannual reports to shareholders fully and fairly presents its financial position.
There is little doubt that the intent of Congress and regulators in this matter is a noble one - to improve the accuracy and accountability of financial reporting to investors by corporate America. We in no way condone any of the activities that brought about these requirements, and we welcome any and every reasonable proposal to strengthen investor protection and information disclosure.
That said, we are proud that mutual funds have always provided full and fair disclosure. Governed by the Investment Company Act of 1940 - and monitored and regulated by federal and state agencies, industry oversight associations, and independent directors - mutual funds are among the most transparent of all financial products. For example, the prices of mutual fund shares are established and published every business day, and the majority of members of the Board of Trustees that oversees our funds are not affiliated with the business of Fidelity. The disclosure standards of mutual funds actually have become models for governance and transparency across corporate America.
We are, of course, complying in full with the letter of this new requirement and hope that any future efforts by Congress to reassure investors about the honesty of corporate America will focus on practical and substantive solutions of genuine value to shareholders.
This sort of careful consideration was evident as Congress deliberated President Bush's tax cut package this spring, then enacted legislation that contains a variety of benefits for American families, investors and businesses. Although the final bill did not completely eliminate the tax that individual investors pay when they receive dividends from companies, it still will benefit American investors, and we applaud it in the spirit of compromise that marked the debate in Congress.
At Fidelity, we are committed to acting at all times in accordance with the highest standards of integrity and in the best interests of our fund shareholders. We are proud of the amount of information we provide to those who invest in our funds and pleased to continue that level of communication with you in these reports.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Investment Changes
Top Five Stocks as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Nomura Holdings, Inc. (Japan, Diversified Financials) | 3.3 | 3.0 |
Unilever NV (Certificaten Van Aandelen) (Netherlands, Food Products) | 2.8 | 2.6 |
Nikko Cordial Corp. (Japan, Diversified Financials) | 2.7 | 3.1 |
Credit Suisse Group (Reg.) (Switzerland, Banks) | 2.6 | 2.2 |
Vodafone Group PLC (United Kingdom, Wireless Telecommunication Services) | 2.5 | 3.6 |
| 13.9 | |
Top Five Market Sectors as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 28.7 | 27.1 |
Information Technology | 17.9 | 19.2 |
Energy | 10.5 | 9.8 |
Health Care | 10.1 | 11.4 |
Consumer Discretionary | 9.5 | 7.6 |
Top Five Countries as of April 30, 2003 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
Japan | 20.2 | 22.9 |
United Kingdom | 14.8 | 15.2 |
France | 8.4 | 9.7 |
Netherlands | 8.3 | 8.6 |
Switzerland | 8.1 | 7.9 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2003 | As of October 31, 2002 |
| Stocks and
Investment
Companies 96.2% | | | Stocks and
Investment
Companies 96.4% | |
| Bonds 0.5% | | | Bonds 0.4% | |
| Short-Term
Investments and
Net Other Assets 3.3% | | | Short-Term
Investments and
Net Other Assets 3.2% | |
Semiannual Report
Investments April 30, 2003 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.1% |
| Shares | | Value (Note 1)
(000s) |
Australia - 1.1% |
News Corp. Ltd. sponsored ADR | 495,000 | | $ 11,613 |
Belgium - 0.2% |
Fortis | 105,600 | | 1,776 |
Brazil - 0.2% |
Aracruz Celulose SA sponsored ADR | 79,200 | | 1,663 |
Canada - 3.2% |
Alcan, Inc. | 111,300 | | 3,261 |
Canadian Natural Resources Ltd. | 111,500 | | 3,718 |
EnCana Corp. | 220,400 | | 7,228 |
Falconbridge Ltd. | 33,900 | | 397 |
NOVA Chemicals Corp. | 27,200 | | 583 |
Precision Drilling Corp. (a) | 81,100 | | 2,776 |
Talisman Energy, Inc. | 362,500 | | 14,472 |
Tembec, Inc. (a) | 166,300 | | 843 |
TOTAL CANADA | | 33,278 |
Cayman Islands - 0.5% |
Noble Corp. (a) | 151,500 | | 4,689 |
Denmark - 0.6% |
Novo Nordisk AS Series B | 179,300 | | 6,502 |
Finland - 2.3% |
Nokia Corp. | 1,249,700 | | 20,708 |
Stora Enso Oyj sponsored ADR | 94,600 | | 1,029 |
UPM-Kymmene Corp. sponsored ADR | 126,000 | | 1,890 |
TOTAL FINLAND | | 23,627 |
France - 8.4% |
Alcatel SA (RFD) | 284,800 | | 2,295 |
Aventis SA (France) | 60,757 | | 3,059 |
AXA SA | 471,560 | | 7,177 |
BNP Paribas SA | 419,481 | | 19,729 |
L'Air Liquide SA | 14,900 | | 2,261 |
Pechiney SA Series A | 76,700 | | 2,217 |
Pernod-Ricard | 55,100 | | 4,846 |
Sanofi-Synthelabo SA | 43,800 | | 2,618 |
Schneider Electric SA | 28,300 | | 1,342 |
Television Francaise 1 SA | 354,400 | | 9,975 |
TotalFinaElf SA Series B | 181,697 | | 23,875 |
Vivendi Universal SA sponsored ADR | 429,900 | | 7,055 |
TOTAL FRANCE | | 86,449 |
Common Stocks - continued |
| Shares | | Value (Note 1)
(000s) |
Germany - 7.1% |
Allianz AG (Reg.) | 171,500 | | $ 12,149 |
Altana AG sponsored ADR (a) | 50,800 | | 2,499 |
BASF AG | 111,900 | | 5,001 |
Bayer AG | 199,200 | | 3,642 |
Deutsche Boerse AG | 314,901 | | 14,789 |
Deutsche Telekom AG: | | | |
(Reg.) | 187,700 | | 2,515 |
sponsored ADR | 615,200 | | 8,244 |
Infineon Technologies AG (a) | 2,062,800 | | 15,339 |
Muenchener Rueckversicherungs-Gesellschaft AG (Reg.) | 91,100 | | 9,117 |
TOTAL GERMANY | | 73,295 |
Hong Kong - 1.4% |
China Mobile (Hong Kong) Ltd. | 1,726,750 | | 3,457 |
CNOOC Ltd. | 1,285,000 | | 1,689 |
Hong Kong Exchanges & Clearing Ltd. | 2,118,000 | | 2,471 |
Hutchison Whampoa Ltd. | 1,171,700 | | 6,520 |
TOTAL HONG KONG | | 14,137 |
India - 0.6% |
Dr. Reddy's Laboratories Ltd. | 124,200 | | 2,293 |
Infosys Technologies Ltd. | 13,900 | | 820 |
Ranbaxy Laboratories Ltd. | 182,900 | | 2,609 |
Satyam Computer Services Ltd. | 241,000 | | 776 |
TOTAL INDIA | | 6,498 |
Italy - 1.5% |
Banca Intesa Spa | 892,775 | | 2,322 |
Telecom Italia Spa | 1,163,928 | | 9,435 |
Unicredito Italiano Spa | 786,900 | | 3,451 |
TOTAL ITALY | | 15,208 |
Japan - 20.2% |
Advantest Corp. | 112,800 | | 3,795 |
Canon, Inc. | 370,000 | | 14,841 |
Credit Saison Co. Ltd. | 231,900 | | 4,379 |
Daikin Industries Ltd. | 58,000 | | 968 |
Daiwa Securities Group, Inc. | 5,798,000 | | 22,871 |
Fuji Photo Film Co. Ltd. | 66,000 | | 1,688 |
Ito-Yokado Co. Ltd. | 400,400 | | 9,446 |
JAFCO Co. Ltd. | 162,700 | | 5,898 |
Japan Telecom Holdings Co. Ltd. | 766 | | 2,100 |
Common Stocks - continued |
| Shares | | Value (Note 1)
(000s) |
Japan - continued |
KDDI Corp. | 1,666 | | $ 5,072 |
Keyence Corp. | 1,200 | | 193 |
Kyocera Corp. | 99,300 | | 4,861 |
Matsushita Electric Industrial Co. Ltd. | 249,200 | | 1,979 |
Mizuho Financial Group, Inc. (a) | 1,228 | | 658 |
Murata Manufacturing Co. Ltd. | 170,500 | | 6,095 |
Nikko Cordial Corp. | 10,347,000 | | 27,848 |
Nikon Corp. (a) | 313,000 | | 2,093 |
Nintendo Co. Ltd. | 52,900 | | 4,147 |
Nissan Motor Co. Ltd. | 688,650 | | 5,279 |
Nomura Holdings, Inc. | 3,414,000 | | 33,912 |
ORIX Corp. | 189,600 | | 8,691 |
Rohm Co. Ltd. | 84,100 | | 8,693 |
Shin-Etsu Chemical Co. Ltd. | 147,100 | | 4,417 |
SMC Corp. | 12,900 | | 974 |
Sony Corp. | 119,100 | | 2,947 |
Sumitomo Electric Industries Ltd. | 556,000 | | 3,119 |
Sumitomo Mitsui Financial Group, Inc. | 530 | | 834 |
Takeda Chemical Industries Ltd. | 186,900 | | 6,870 |
Tokyo Electron Ltd. | 232,800 | | 8,752 |
Toshiba Corp. | 558,000 | | 1,492 |
Toyota Motor Corp. | 168,700 | | 3,819 |
TOTAL JAPAN | | 208,731 |
Korea (South) - 2.1% |
Kookmin Bank | 20,870 | | 586 |
KT Corp. sponsored ADR | 101,400 | | 2,052 |
Samsung Electronics Co. Ltd. | 73,080 | | 18,353 |
Shinsegae Co. Ltd. | 3,700 | | 442 |
TOTAL KOREA (SOUTH) | | 21,433 |
Mexico - 1.7% |
Grupo Televisa SA de CV sponsored ADR (a) | 218,700 | | 6,635 |
Telefonos de Mexico SA de CV sponsored ADR | 307,600 | | 9,293 |
TV Azteca SA de CV sponsored ADR | 271,900 | | 1,577 |
TOTAL MEXICO | | 17,505 |
Netherlands - 7.9% |
Akzo Nobel NV | 109,000 | | 2,428 |
ASML Holding NV (a) | 1,937,700 | | 16,771 |
ING Groep NV (Certificaten Van Aandelen) | 897,946 | | 14,609 |
Koninklijke Ahold NV | 593,100 | | 2,719 |
Common Stocks - continued |
| Shares | | Value (Note 1)
(000s) |
Netherlands - continued |
Koninklijke Philips Electronics NV | 348,700 | | $ 6,500 |
STMicroelectronics NV (NY Shares) | 61,500 | | 1,266 |
Unilever NV (Certificaten Van Aandelen) | 463,400 | | 29,251 |
VNU NV | 247,800 | | 7,204 |
Wolters Kluwer NV (Certificaten Van Aandelen) | 82,100 | | 1,071 |
TOTAL NETHERLANDS | | 81,819 |
Norway - 0.7% |
Norsk Hydro AS | 70,600 | | 2,987 |
Statoil ASA | 503,500 | | 3,994 |
TOTAL NORWAY | | 6,981 |
Russia - 0.6% |
JSC MMC 'Norilsk Nickel' sponsored ADR | 91,600 | | 2,084 |
YUKOS Corp. sponsored ADR | 26,600 | | 4,655 |
TOTAL RUSSIA | | 6,739 |
Singapore - 0.5% |
Flextronics International Ltd. (a) | 600,400 | | 5,254 |
Spain - 2.9% |
Altadis SA (Spain) | 225,900 | | 5,835 |
Banco Popular Espanol SA (Reg.) | 133,700 | | 6,494 |
Banco Santander Central Hispano SA | 1,223,960 | | 9,635 |
NH Hoteles SA (a) | 269,500 | | 2,426 |
Telefonica SA | 525,754 | | 5,826 |
TOTAL SPAIN | | 30,216 |
Sweden - 1.3% |
Nordea AB | 886,300 | | 4,717 |
Telefonaktiebolaget LM Ericsson ADR (a) | 993,100 | | 8,997 |
TOTAL SWEDEN | | 13,714 |
Switzerland - 8.1% |
Converium Holding AG | 58,670 | | 2,653 |
Credit Suisse Group (Reg.) | 1,118,392 | | 26,754 |
Nestle SA (Reg.) | 25,652 | | 5,237 |
Novartis AG (Reg.) | 511,190 | | 20,192 |
Roche Holding AG (participation certificate) | 186,300 | | 11,871 |
Swiss Reinsurance Co. (Reg.) | 124,681 | | 8,156 |
Common Stocks - continued |
| Shares | | Value (Note 1)
(000s) |
Switzerland - continued |
UBS AG (Reg.) | 141,604 | | $ 6,728 |
Zurich Financial Services AG | 17,080 | | 1,803 |
TOTAL SWITZERLAND | | 83,394 |
Taiwan - 1.2% |
ASUSTeK Computer, Inc. | 964,000 | | 1,881 |
Hon Hai Precision Industries Co. Ltd. | 356,000 | | 1,113 |
Taiwan Semiconductor Manufacturing Co. Ltd. (a) | 4,738,754 | | 6,500 |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR (a) | 99,700 | | 834 |
Winbond Electronics Corp. (a) | 7,224,000 | | 2,467 |
TOTAL TAIWAN | | 12,795 |
United Kingdom - 14.8% |
3i Group PLC | 621,116 | | 4,622 |
Abbey National PLC | 325,500 | | 2,315 |
Amvescap PLC | 810,700 | | 4,411 |
AstraZeneca PLC (United Kingdom) | 380,300 | | 15,163 |
BHP Billiton PLC | 275,100 | | 1,409 |
BP PLC | 2,700,700 | | 17,347 |
British Sky Broadcasting Group PLC (BSkyB) (a) | 579,900 | | 6,018 |
Cable & Wireless PLC | 1,141,600 | | 1,375 |
Carlton Communications PLC | 744,900 | | 1,252 |
Centrica PLC | 714,600 | | 1,901 |
Diageo PLC | 133,050 | | 1,478 |
GlaxoSmithKline PLC | 1,148,269 | | 23,264 |
HBOS PLC | 390,200 | | 4,577 |
HSBC Holdings PLC (United Kingdom) (Reg.) | 759,900 | | 8,312 |
Kingfisher PLC | 1,177,100 | | 4,606 |
Lloyds TSB Group PLC | 421,400 | | 2,775 |
Prudential PLC | 1,137,300 | | 6,971 |
Reckitt Benckiser PLC | 167,500 | | 2,958 |
Reed Elsevier PLC | 380,300 | | 3,037 |
Rio Tinto PLC (Reg.) | 257,600 | | 4,930 |
Schroders PLC | 81,400 | | 792 |
Shire Pharmaceuticals Group PLC sponsored ADR (a) | 161,400 | | 3,212 |
Tesco PLC | 1,549,000 | | 4,908 |
Vodafone Group PLC | 13,042,516 | | 25,772 |
TOTAL UNITED KINGDOM | | 153,405 |
United States of America - 7.0% |
Baker Hughes, Inc. | 160,600 | | 4,497 |
Common Stocks - continued |
| Shares | | Value (Note 1)
(000s) |
United States of America - continued |
BJ Services Co. (a) | 67,100 | | $ 2,450 |
ENSCO International, Inc. | 208,400 | | 5,293 |
Freeport-McMoRan Copper & Gold, Inc. Class B | 219,650 | | 3,802 |
Grant Prideco, Inc. (a) | 306,200 | | 3,494 |
Micron Technology, Inc. (a) | 1,859,530 | | 15,806 |
Motorola, Inc. | 2,084,600 | | 16,489 |
NTL, Inc. (a) | 69,800 | | 1,187 |
Smith International, Inc. (a) | 20,000 | | 711 |
Synthes-Stratec, Inc. | 6,239 | | 3,939 |
Transocean, Inc. | 118,500 | | 2,257 |
Tyco International Ltd. | 689,300 | | 10,753 |
Weatherford International Ltd. (a) | 40,900 | | 1,645 |
TOTAL UNITED STATES OF AMERICA | | 72,323 |
TOTAL COMMON STOCKS (Cost $1,123,978) | 993,044 |
Nonconvertible Preferred Stocks - 0.1% |
| | | |
Italy - 0.1% |
Telecom Italia Spa Risp (non-vtg.)
(Cost $758) | 187,300 | | 920 |
Investment Companies - 0.0% |
| | | |
Multi-National - 0.0% |
European Warrant Fund, Inc.
(Cost $2,116) | 163,500 | | 343 |
Corporate Bonds - 0.5% |
| Principal
Amount (000s) | | |
Convertible Bonds - 0.4% |
Netherlands - 0.4% |
Koninklijke Ahold NV: | | | | |
3% 9/30/03 | NLG | 6,090 | | 2,781 |
4% 5/19/05 | EUR | 1,040 | | 906 |
TOTAL NETHERLANDS | | 3,687 |
Corporate Bonds - continued |
| Principal
Amount (000s) | | Value (Note 1)
(000s) |
Nonconvertible Bonds - 0.1% |
Netherlands - 0.0% |
Koninklijke Ahold NV 5.875% 5/9/08 | EUR | 690 | | $ 611 |
United States of America - 0.1% |
Ahold Finance USA, Inc. euro 6.375% 6/8/05 | EUR | 690 | | 677 |
TOTAL NONCONVERTIBLE BONDS | | 1,288 |
TOTAL CORPORATE BONDS (Cost $4,618) | 4,975 |
Money Market Funds - 19.1% |
| Shares | | |
Fidelity Cash Central Fund, 1.29% (b) | 37,356,654 | | 37,357 |
Fidelity Securities Lending Cash Central Fund, 1.3% (b) | 160,421,464 | | 160,421 |
TOTAL MONEY MARKET FUNDS (Cost $197,778) | 197,778 |
TOTAL INVESTMENT PORTFOLIO - 115.8% (Cost $1,329,248) | | 1,197,060 |
NET OTHER ASSETS - (15.8)% | | (163,767) |
NET ASSETS - 100% | $ 1,033,293 |
Currency Abbreviations |
EUR | - | European Monetary Unit |
NLG | - | Dutch guilder |
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 $363,625,000 and $418,240,000, respectively. |
The fund participated in the interfund lending program as a borrower. The average daily loan balance during the period for which the loans were outstanding amounted to $6,560,000. The weighted average interest rate was 1.37%. At period end there were no interfund loans outstanding. |
Income Tax Information |
At October 31, 2002, the fund had a capital loss carryforward of approximately $408,929,000 of which $263,932,000 and $144,997,000 will expire on October 31, 2009 and 2010, respectively. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | April 30, 2003 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $153,077) (cost $1,329,248) - See accompanying schedule | | $ 1,197,060 |
Foreign currency held at value (cost $8,258) | | 8,211 |
Receivable for investments sold | | 3,602 |
Receivable for fund shares sold | | 1,929 |
Dividends receivable | | 4,371 |
Interest receivable | | 224 |
Other receivables | | 128 |
Total assets | | 1,215,525 |
| | |
Liabilities | | |
Payable to custodian bank | $ 16 | |
Payable for investments purchased | 11,830 | |
Payable for fund shares redeemed | 8,849 | |
Accrued management fee | 444 | |
Distribution fees payable | 414 | |
Other payables and accrued expenses | 258 | |
Collateral on securities loaned, at value | 160,421 | |
Total liabilities | | 182,232 |
| | |
Net Assets | | $ 1,033,293 |
Net Assets consist of: | | |
Paid in capital | | 1,672,147 |
Undistributed net investment income | | 1,013 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (507,709) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (132,158) |
Net Assets | | $ 1,033,293 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | April 30, 2003 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share
($47,302 ÷ 4,457 shares) | | $ 10.61 |
| | |
Maximum offering price per share (100/94.25 of $10.61) | | $ 11.26 |
Class T:
Net Asset Value and redemption price per share ($850,769 ÷ 79,019 shares) | | $ 10.77 |
| | |
Maximum offering price per share (100/96.50 of $10.77) | | $ 11.16 |
Class B:
Net Asset Value and offering price per share ($46,193 ÷ 4,499 shares) A | | $ 10.27 |
| | |
Class C:
Net Asset Value and offering price per share ($31,906 ÷ 3,057 shares) A | | $ 10.44 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($57,123 ÷ 5,322 shares) | | $ 10.73 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended April 30, 2003 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 10,029 |
Interest | | 462 |
Security lending | | 290 |
| | 10,781 |
Less foreign taxes withheld | | (1,235) |
Total income | | 9,546 |
| | |
Expenses | | |
Management fee
Basic fee | $ 3,818 | |
Performance adjustment | (901) | |
Transfer agent fees | 1,556 | |
Distribution fees | 2,624 | |
Accounting and security lending fees | 275 | |
Non-interested trustees' compensation | 2 | |
Custodian fees and expenses | 199 | |
Registration fees | 48 | |
Audit | 46 | |
Legal | 41 | |
Interest | 1 | |
Miscellaneous | 5 | |
Total expenses before reductions | 7,714 | |
Expense reductions | (213) | 7,501 |
Net investment income (loss) | | 2,045 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities | (72,380) | |
Foreign currency transactions | (87) | |
Total net realized gain (loss) | | (72,467) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 34,639 | |
Assets and liabilities in foreign currencies | 89 | |
Total change in net unrealized appreciation (depreciation) | | 34,728 |
Net gain (loss) | | (37,739) |
Net increase (decrease) in net assets resulting from operations | | $ (35,694) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended
April 30, 2003
(Unaudited) | Year ended
October 31,
2002 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 2,045 | $ (934) |
Net realized gain (loss) | (72,467) | (146,183) |
Change in net unrealized appreciation (depreciation) | 34,728 | (54,978) |
Net increase (decrease) in net assets resulting
from operations | (35,694) | (202,095) |
Share transactions - net increase (decrease) | (56,835) | (103,769) |
Total increase (decrease) in net assets | (92,529) | (305,864) |
| | |
Net Assets | | |
Beginning of period | 1,125,822 | 1,431,686 |
End of period (including undistributed net investment income of $1,013 and distributions in excess of net investment income of $1,032, respectively) | $ 1,033,293 | $ 1,125,822 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 | 1998 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.01 | $ 12.90 | $ 19.88 | $ 20.59 | $ 16.32 | $ 16.89 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .03 | .01 | .06 | .06 F | .10 | .09 |
Net realized and unrealized gain (loss) | (.43) | (1.90) | (4.89) | .38 | 4.42 | .51 |
Total from investment operations | (.40) | (1.89) | (4.83) | .44 | 4.52 | .60 |
Distributions from net investment income | - | - | (.43) | (.08) | (.11) | (.21) |
Distributions in excess of net investment income | - | - | - | (.09) | - | - |
Distributions from net realized gain | - | - | (1.72) | (.98) | (.14) | (.96) |
Total distributions | - | - | (2.15) | (1.15) | (.25) | (1.17) |
Net asset value, end of period | $ 10.61 | $ 11.01 | $ 12.90 | $ 19.88 | $ 20.59 | $ 16.32 |
Total Return B,C,D | (3.63)% | (14.65)% | (27.16)% | 1.78% | 28.05% | 3.73% |
Ratios to Average Net Assets G | | | | | |
Expenses before expense reductions | 1.35% A | 1.56% | 1.46% | 1.49% | 1.55% | 1.68% |
Expenses net of voluntary waivers, if any | 1.35% A | 1.56% | 1.46% | 1.49% | 1.55% | 1.55% |
Expenses net of all reductions | 1.31% A | 1.52% | 1.41% | 1.46% | 1.52% | 1.54% |
Net investment income (loss) | .53% A | .07% | .40% | .28% | .57% | .51% |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 47 | $ 44 | $ 46 | $ 44 | $ 23 | $ 12 |
Portfolio turnover rate | 72% A | 73% | 99% | 132% | 85% | 74% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Investment income per share reflects a special dividend which amounted to $.04 per share. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 | 1998 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 11.18 | $ 13.11 | $ 20.13 | $ 20.83 | $ 16.48 | $ 17.02 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .02 | (.01) | .04 | .02 F | .07 | .06 |
Net realized and unrealized gain (loss) | (.43) | (1.92) | (4.99) | .39 | 4.46 | .52 |
Total from investment operations | (.41) | (1.93) | (4.95) | .41 | 4.53 | .58 |
Distributions from net investment income | - | - | (.35) | (.06) | (.04) | (.16) |
Distributions in excess of net investment income | - | - | - | (.07) | - | - |
Distributions from net realized gain | - | - | (1.72) | (.98) | (.14) | (.96) |
Total distributions | - | - | (2.07) | (1.11) | (.18) | (1.12) |
Net asset value, end of period | $ 10.77 | $ 11.18 | $ 13.11 | $ 20.13 | $ 20.83 | $ 16.48 |
Total Return B,C,D | (3.67)% | (14.72)% | (27.33)% | 1.62% | 27.74% | 3.57% |
Ratios to Average Net Assets G | | | | | |
Expenses before expense reductions | 1.46% A | 1.68% | 1.62% | 1.67% | 1.72% | 1.74% |
Expenses net of voluntary waivers, if any | 1.46% A | 1.68% | 1.62% | 1.67% | 1.72% | 1.74% |
Expenses net of all
reductions | 1.42% A | 1.64% | 1.57% | 1.65% | 1.69% | 1.72% |
Net investment income (loss) | .42% A | (.05) % | .24% | .10% | .39% | .35% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 851 | $ 928 | $ 1,185 | $ 1,678 | $ 1,480 | $ 1,086 |
Portfolio turnover rate | 72% A | 73% | 99% | 132% | 85% | 74% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Investment income per share reflects a special dividend which amounted to $.04 per share. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 | 1998 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.71 | $ 12.63 | $ 19.49 | $ 20.25 | $ 16.08 | $ 16.69 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | (.08) | (.06) | (.11) F | (.03) | (.03) |
Net realized and unrealized gain (loss) | (.42) | (1.84) | (4.83) | .39 | 4.34 | .51 |
Total from investment operations | (.44) | (1.92) | (4.89) | .28 | 4.31 | .48 |
Distributions from net investment income | - | - | (.25) | (.03) | - | (.13) |
Distributions in excess of net investment income | - | - | - | (.03) | - | - |
Distributions from net realized gain | - | - | (1.72) | (.98) | (.14) | (.96) |
Total distributions | - | - | (1.97) | (1.04) | (.14) | (1.09) |
Net asset value, end of period | $ 10.27 | $ 10.71 | $ 12.63 | $ 19.49 | $ 20.25 | $ 16.08 |
Total Return B,C,D | (4.11)% | (15.20)% | (27.83)% | 1.02% | 27.00% | 3.00% |
Ratios to Average Net Assets G | | | | | |
Expenses before expense reductions | 2.28% A | 2.43% | 2.27% | 2.27% | 2.30% | 2.34% |
Expenses net of voluntary waivers, if any | 2.28% A | 2.30% | 2.27% | 2.27% | 2.29% | 2.30% |
Expenses net of all
reductions | 2.24% A | 2.26% | 2.23% | 2.25% | 2.26% | 2.29% |
Net investment income (loss) | (.40)% A | (.66)% | (.42)% | (.50)% | (.18)% | (.19)% |
Supplemental Data | | | | | |
Net assets, end of
period (in millions) | $ 46 | $ 53 | $ 80 | $ 125 | $ 89 | $ 58 |
Portfolio turnover rate | 72% A | 73% | 99% | 132% | 85% | 74% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Investment income per share reflects a special dividend which amounted to $.04 per share.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 | 1998 H |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.88 | $ 12.84 | $ 19.80 | $ 20.58 | $ 16.37 | $ 17.23 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.02) | (.08) | (.05) | (.10) F | (.02) | (.03) |
Net realized and unrealized gain (loss) | (.42) | (1.88) | (4.89) | .39 | 4.43 | .29 |
Total from investment operations | (.44) | (1.96) | (4.94) | .29 | 4.41 | .26 |
Distributions from net investment income | - | - | (.30) | (.04) | (.06) | (.16) |
Distributions in excess of net investment income | - | - | - | (.05) | - | - |
Distributions from net realized gain | - | - | (1.72) | (.98) | (.14) | (.96) |
Total distributions | - | - | (2.02) | (1.07) | (.20) | (1.12) |
Net asset value, end of period | $ 10.44 | $ 10.88 | $ 12.84 | $ 19.80 | $ 20.58 | $ 16.37 |
Total Return B,C,D | (4.04)% | (15.26)% | (27.70)% | 1.05% | 27.21% | 2.84% |
Ratios to Average Net Assets G | | | | | |
Expenses before expense reductions | 2.17% A | 2.34% | 2.19% | 2.22% | 2.25% | 2.49% A |
Expenses net of voluntary waivers, if any | 2.17% A | 2.30% | 2.19% | 2.22% | 2.25% | 2.30% A |
Expenses net of all
reductions | 2.13% A | 2.26% | 2.14% | 2.20% | 2.22% | 2.30% A |
Net investment income (loss) | (.30)% A | (.66)% | (.34)% | (.45)% | (.13)% | (.20)% A |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 32 | $ 36 | $ 52 | $ 76 | $ 35 | $ 15 |
Portfolio turnover rate | 72% A | 73% | 99% | 132% | 85% | 74% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Investment income per share reflects a special dividend which amounted to $.04 per share.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H For the period November 3, 1997 (commencement of sale of shares) to October 31, 1998. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 | 1998 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 11.11 | $ 12.97 | $ 19.95 | $ 20.62 | $ 16.36 | $ 16.92 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .05 | .06 | .12 | .14 E | .17 | .13 |
Net realized and unrealized gain (loss) | (.43) | (1.92) | (4.91) | .38 | 4.39 | .53 |
Total from investment operations | (.38) | (1.86) | (4.79) | .52 | 4.56 | .66 |
Distributions from net investment income | - | - | (.47) | (.10) | (.16) | (.26) |
Distributions in excess of net investment income | - | - | - | (.11) | - | - |
Distributions from net realized gain | - | - | (1.72) | (.98) | (.14) | (.96) |
Total distributions | - | - | (2.19) | (1.19) | (.30) | (1.22) |
Net asset value, end of period | $ 10.73 | $ 11.11 | $ 12.97 | $ 19.95 | $ 20.62 | $ 16.36 |
Total Return B,C | (3.42)% | (14.34)% | (26.89)% | 2.18% | 28.30% | 4.11% |
Ratios to Average Net Assets F | | | | | |
Expenses before expense reductions | .92% A | 1.14% | 1.06% | 1.13% | 1.18% | 1.26% |
Expenses net of voluntary waivers, if any | .92% A | 1.14% | 1.06% | 1.13% | 1.18% | 1.26% |
Expenses net of all reductions | .87% A | 1.10% | 1.02% | 1.11% | 1.15% | 1.24% |
Net investment income (loss) | .96% A | .49% | .79% | .63% | .94% | .76% |
Supplemental Data | | | | | |
Net assets, end of period (in millions) | $ 57 | $ 63 | $ 69 | $ 90 | $ 90 | $ 77 |
Portfolio turnover rate | 72% A | 73% | 99% | 132% | 85% | 74% |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D 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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2003 (Unaudited)
(Amounts in thousands except ratios)
1. Significant Accounting Policies.
Fidelity Advisor Overseas Fund (the fund) is a fund of Fidelity Advisor Series VIII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
The fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
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 fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. Debt securities for which quotations are readily available are valued at their most recent bid prices (sales prices if the principal market is an exchange) in the principal market in which such securities are normally traded, as determined by recognized dealers in such securities, or securities are valued on the basis of information provided by a pricing service. Pricing services use valuation matrices that incorporate both dealer-supplied valuations and electronic data processing techniques. If an event that is expected to materially affect the value of a security occurs after the close of an exchange or market on which that security trades, but prior to the NAV calculation, then that security will be fair valued taking the event into account. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
1. Significant Accounting Policies - continued
Security Valuation - continued
Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. 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 fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, which includes amortization of premium and accretion of discount on debt securities, as required, 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.
Income Tax Information and Distributions to Shareholders. Each year the fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. Foreign taxes are provided for based on each fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Income dividends and capital gain distributions are declared separately for each class. Distributions are recorded on the ex-dividend date.
Semiannual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Capital accounts within the financial statements are adjusted for permanent and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due to futures transactions, foreign currency transactions, passive foreign investment companies (PFIC), market discount, capital loss carryforwards, and losses deferred due to wash sales.
The federal tax cost of investments including unrealized appreciation (depreciation) as of period end was as follows:
Unrealized appreciation | $ 104,401 | | |
Unrealized depreciation | (258,029) | |
Net unrealized appreciation (depreciation) | $ (153,628) | |
Cost for federal income tax purposes | $ 1,350,688 | |
2. Operating Policies.
Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. The custodian bank receives the collateral, which is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
3. Purchases and Sales of Investments.
Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
4. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the fund's average net assets and a group fee rate that averaged .28% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ±.20% of the fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the investment performance of the asset-weighted return of all classes as compared to an appropriate benchmark index. For the period, the total annualized management fee rate, including the performance adjustment, was .56% of the fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. Class A and Class T Plans also authorize the use of brokerage commissions to pay distribution expenses. In addition, FDC may pay financial intermediaries for selling shares of the fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, the total amounts paid to and retained by FDC and the amount of distribution expenses paid with brokerage commissions were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC | Paid with
Commissions |
Class A | .01% | .25% | $ 60 | $ 1 | $ 1 |
Class T | .26% | .25% | 2,149 | 30 | 23 |
Class B | .75% | .25% | 244 | 183 | |
Class C | .75% | .25% | 171 | 9 |
|
| | | $ 2,624 | $ 223 | $ 24 |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares of the fund. FDC receives the proceeds of contingent deferred sales charge (CDSC) levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, and .25% for certain purchases of Class A and Class T shares.
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 6,156 |
Class T | 7,375 |
Class B* | 73,528 |
Class C* | 8,856 |
| $ 95,915 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the
sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent (collectively referred to as the transfer agent) for each class of the fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the fund. FIIOC pays for typesetting, printing and mailing of all shareholder reports, except proxy statements. For the period, the following amounts were paid to FIIOC:
| Amount | % of
Average
Net Assets |
Class A | $ 97 | .41* |
Class T | 1,158 | .27* |
Class B | 146 | .60* |
Class C | 85 | .49* |
Institutional Class | 70 | .24* |
| $ 1,556 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the 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.
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
4. Fees and Other Transactions with Affiliates - continued
Central Funds - continued
earned by the fund are recorded as income in the accompanying financial statements and totaled $241 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the fund, 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 the fund's participation in the program is included under the caption "Other Information" at the end of the fund's Schedule of Investments.
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $3.5 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 fund has agreed to pay commitment fees on its pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.
6. Security Lending.
The fund lends portfolio securities from time to time in order to earn additional income. The 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 fund and any additional required collateral is delivered to the fund 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 the fund's Statement of Assets and Liabilities.
7. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services may include payments of expenses on behalf of the fund to support distribution of fund shares for Class A and Class T ("Distribution Expense Reduction") and to pay other fund expenses, such as transfer agent fees ("Other Expense Reduction") collectively referred to as "Directed Brokerage" in the accompanying table. Directed brokerage generally benefits all
Semiannual Report
7. Expense Reductions - continued
shareholders of each class by reducing fund expenses. Each of Class A and Class T shareholders' Other Expense Reduction benefit is reduced by the amount of any Distribution Expense Reduction. In addition, through arrangements with the fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. All of the applicable expense reductions are noted in the table below.
| Directed Brokerage | |
| Distribution
expense reduction | Other
expense reduction | Custody
expense reduction |
| | | |
Fund Level | $ | $ 188 | $ 1 |
Class A | 1 | - | - |
Class T | 23 | - | - |
| $ 24 | $ 188 | $ 1 |
8. Other Information.
At the end of the period, one unaffiliated shareholder was the owner of record of 27% of the total outstanding shares of the fund.
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2003 | Year ended
October 31,
2002 | Six months ended
April 30,
2003 | Year ended
October 31,
2002 |
Class A | | | | |
Shares sold | 5,695 | 9,250 | $ 60,099 | $ 120,262 |
Shares redeemed | (5,278) | (8,748) | (55,670) | (114,908) |
Net increase (decrease) | 417 | 502 | $ 4,429 | $ 5,354 |
Class T | | | | |
Shares sold | 18,543 | 34,800 | $ 198,486 | $ 449,377 |
Shares redeemed | (22,568) | (42,125) | (247,502) | (538,683) |
Net increase (decrease) | (4,025) | (7,325) | $ (49,016) | $ (89,306) |
Class B | | | | |
Shares sold | 238 | 738 | $ 2,436 | $ 9,282 |
Shares redeemed | (730) | (2,060) | (7,466) | (25,749) |
Net increase (decrease) | (492) | (1,322) | $ (5,030) | $ (16,467) |
Class C | | | | |
Shares sold | 618 | 967 | $ 6,601 | $ 12,444 |
Shares redeemed | (907) | (1,683) | (9,588) | (21,549) |
Net increase (decrease) | (289) | (716) | $ (2,987) | $ (9,105) |
Institutional Class | | | | |
Shares sold | 3,815 | 5,939 | $ 40,404 | $ 77,765 |
Shares redeemed | (4,171) | (5,590) | (44,635) | (72,010) |
Net increase (decrease) | (356) | 349 | $ (4,231) | $ 5,755 |
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
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agent
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
Semiannual Report
Fidelity Advisor Aggressive Growth Fund |
Fidelity Advisor Asset Allocation Fund |
Fidelity Advisor Balanced Fund |
Fidelity Advisor Biotechnology Fund |
Fidelity Advisor California Municipal Income Fund |
Fidelity Advisor Consumer Industries Fund |
Fidelity Advisor Cyclical Industries Fund |
Fidelity Advisor Developing Communications Fund |
Fidelity Advisor Diversified International Fund |
Fidelity Advisor Dividend Growth Fund |
Fidelity Advisor Dynamic Capital Appreciation Fund |
Fidelity Advisor Electronics Fund |
Fidelity Advisor Emerging Asia Fund |
Fidelity Advisor Emerging Markets Income Fund |
Fidelity Advisor Equity Growth Fund |
Fidelity Advisor Equity Income Fund |
Fidelity Advisor Equity Value Fund |
Fidelity Advisor Europe Capital Appreciation Fund |
Fidelity Advisor Fifty Fund |
Fidelity Advisor Financial Services Fund |
Fidelity Advisor Floating Rate High Income Fund |
Fidelity Advisor Global Equity Fund |
Fidelity Advisor Government Investment Fund |
Fidelity Advisor Growth & Income Fund |
Fidelity Advisor Growth Opportunities |
Fidelity Advisor Health Care Fund |
Fidelity Advisor High Income Advantage Fund |
Fidelity Advisor High Income Fund |
Fidelity Advisor Inflation-Protected Bond Fund |
Fidelity Advisor Intermediate Bond Fund |
Fidelity Advisor International Capital Appreciation Fund |
Fidelity Advisor Investment Grade Bond Fund |
Fidelity Advisor Japan Fund |
Fidelity Advisor Korea Fund |
Fidelity Advisor Large Cap Fund |
Fidelity Advisor Latin America Fund |
Fidelity Advisor Leveraged Company Stock Fund |
Fidelity Advisor Mid Cap Fund |
Fidelity Advisor Mortgage Securities Fund |
Fidelity Advisor Municipal Income Fund |
Fidelity Advisor Natural Resources Fund |
Fidelity Advisor New York Municipal Income Fund |
Fidelity Advisor Overseas Fund |
Fidelity Advisor Real Estate Fund |
Fidelity Advisor Short Fixed-Income Fund |
Fidelity Advisor Small Cap Fund |
Fidelity Advisor Strategic Growth Fund |
Fidelity Advisor Strategic Income Fund |
Fidelity Advisor Tax Managed
Stock Fund |
Fidelity Advisor Technology Fund |
Fidelity Advisor Telecommunications & Utilities Growth Fund |
Fidelity Advisor Value Strategies Fund |
Prime Fund |
Tax-Exempt Fund |
Treasury Fund |
(Fidelity Investment logo)(registered trademark)
OS-USAN-0603
1.784903.100
Fidelity® Advisor
Emerging Asia
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2003
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
| | |
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.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.
Neither the fund nor Fidelity Distributors Corporation is a bank.
For more information on any Fidelity Advisor fund, including charges and expenses, contact your investment professional for a free prospectus. Read it carefully before you invest or send money.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
This shareholder update and report on the performance of your fund is among the first to be produced under the new Sarbanes-Oxley Public Company Accounting and Investor Protection Act of 2002. This act requires that public companies certify, under penalty of law, the financial information they report to shareholders. It was adopted by Congress in reaction to several incidents of corporate malfeasance that brought the integrity of management of some publicly traded companies into question.
After the act was signed into law, the Securities and Exchange Commission interpreted it as applying to mutual funds as well as public companies. Thus, every mutual fund now is required to certify that the financial information provided in annual and semiannual reports to shareholders fully and fairly presents its financial position.
There is little doubt that the intent of Congress and regulators in this matter is a noble one - to improve the accuracy and accountability of financial reporting to investors by corporate America. We in no way condone any of the activities that brought about these requirements, and we welcome any and every reasonable proposal to strengthen investor protection and information disclosure.
That said, we are proud that mutual funds have always provided full and fair disclosure. Governed by the Investment Company Act of 1940 - and monitored and regulated by federal and state agencies, industry oversight associations, and independent directors - mutual funds are among the most transparent of all financial products. For example, the prices of mutual fund shares are established and published every business day, and the majority of members of the Board of Trustees that oversees our funds are not affiliated with the business of Fidelity. The disclosure standards of mutual funds actually have become models for governance and transparency across corporate America.
We are, of course, complying in full with the letter of this new requirement and hope that any future efforts by Congress to reassure investors about the honesty of corporate America will focus on practical and substantive solutions of genuine value to shareholders.
This sort of careful consideration was evident as Congress deliberated President Bush's tax cut package this spring, then enacted legislation that contains a variety of benefits for American families, investors and businesses. Although the final bill did not completely eliminate the tax that individual investors pay when they receive dividends from companies, it still will benefit American investors, and we applaud it in the spirit of compromise that marked the debate in Congress.
At Fidelity, we are committed to acting at all times in accordance with the highest standards of integrity and in the best interests of our fund shareholders. We are proud of the amount of information we provide to those who invest in our funds and pleased to continue that level of communication with you in these reports.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Investment Changes
Top Ten Stocks as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Samsung Electronics Co. Ltd. | 9.4 | 8.7 |
HSBC Holdings PLC (Hong Kong) (Reg.) | 3.5 | 2.1 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 3.4 | 2.6 |
Hutchison Whampoa Ltd. | 2.7 | 3.5 |
Formosa Plastic Corp. | 2.5 | 1.3 |
KT Corp. | 2.2 | 2.3 |
United Overseas Bank Ltd. | 2.2 | 2.8 |
LG Electronics, Inc. | 2.2 | 1.7 |
LG Chemical Ltd. | 1.9 | 1.6 |
Hang Seng Bank Ltd. | 1.9 | 2.3 |
| 31.9 | |
Top Five Market Sectors as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 25.5 | 31.3 |
Information Technology | 21.6 | 23.8 |
Materials | 13.0 | 6.7 |
Consumer Discretionary | 8.7 | 12.5 |
Industrials | 8.5 | 6.2 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2003 | As of October 31, 2002 |
| Stocks 93.0% | | | Stocks 98.7% | |
| Short-Term
Investments and
Net Other Assets 7.0% | | | Short-Term
Investments and
Net Other Assets 1.3% | |
Semiannual Report
Investments April 30, 2003 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 91.4% |
| Shares | | Value (Note 1) |
China - 5.8% |
Aluminum Corp. of China Ltd. (H Shares) | 726,000 | | $ 126,598 |
China Oilfield Services Ltd. (H Shares) | 496,000 | | 104,935 |
China Petroleum & Chemical Corp. (H Shares) | 2,100,000 | | 414,661 |
PetroChina Co. Ltd. (H Shares) | 2,116,000 | | 482,935 |
Sinopec Shanghai Petrochemical Co. Ltd. (H Shares) (a) | 1,684,000 | | 261,264 |
Zhenhai Refining & Chemical Co. (H Shares) | 242,000 | | 72,918 |
TOTAL CHINA | | 1,463,311 |
Hong Kong - 16.1% |
ASM Pacific Technology Ltd. | 32,500 | | 80,634 |
Bank of East Asia Ltd. | 108,000 | | 200,099 |
Cheung Kong Holdings Ltd. | 86,000 | | 475,257 |
China Mobile (Hong Kong) Ltd. | 164,500 | | 329,329 |
CNOOC Ltd. | 141,500 | | 185,966 |
Esprit Holdings Ltd. | 56,000 | | 109,858 |
Hang Seng Bank Ltd. | 48,800 | | 483,360 |
Hong Kong & China Gas Co. Ltd. | 274,400 | | 323,687 |
Hutchison Whampoa Ltd. | 125,000 | | 695,589 |
Johnson Electric Holdings Ltd. | 417,500 | | 449,664 |
Li & Fung Ltd. | 338,000 | | 379,208 |
Sun Hung Kai Properties Ltd. | 79,000 | | 370,733 |
TOTAL HONG KONG | | 4,083,384 |
India - 6.0% |
Bajaj Auto Ltd. | 4,920 | | 50,219 |
Bharat Petroleum Corp. Ltd. | 14,000 | | 68,373 |
Dr. Reddy's Laboratories Ltd. | 2,660 | | 49,105 |
Housing Development Finance Corp. Ltd. | 17,750 | | 127,949 |
ICICI Bank Ltd. | 56,081 | | 143,876 |
Infosys Technologies Ltd. | 4,280 | | 252,409 |
ITC Ltd. | 100 | | 1,441 |
Ranbaxy Laboratories Ltd. | 12,744 | | 181,788 |
Reliance Industries Ltd. | 53,550 | | 311,092 |
State Bank of India | 18,925 | | 111,402 |
Tata Engineering & Locomotive Co. Ltd. (a) | 45,720 | | 145,798 |
Wipro Ltd. | 4,220 | | 77,324 |
TOTAL INDIA | | 1,520,776 |
Indonesia - 0.6% |
PT Bank PAN Indonesia Tbk (a) | 1,093,000 | | 29,614 |
PT Telkomunikasi Indonesia Tbk | 253,000 | | 119,594 |
TOTAL INDONESIA | | 149,208 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Korea (South) - 25.7% |
Hanil Cement Co. Ltd. | 2,470 | | $ 89,892 |
Hanwha Chemical Corp. (a) | 37,170 | | 115,075 |
Honam Petrochemical Corp. | 13,540 | | 340,590 |
Kookmin Bank | 16,209 | | 455,106 |
KT Corp. | 13,400 | | 550,564 |
LG Chemical Ltd. | 14,640 | | 485,790 |
LG Electronics, Inc. | 15,820 | | 545,787 |
POSCO | 4,060 | | 342,651 |
S-Oil Corp. | 10,550 | | 171,997 |
Samsung Electro-Mechanics Co. Ltd. | 1,820 | | 53,723 |
Samsung Electronics Co. Ltd. | 9,517 | | 2,390,026 |
Samsung Fire & Marine Insurance Co. Ltd. | 6,030 | | 297,900 |
Samsung SDI Co. Ltd. | 3,360 | | 210,259 |
Shinsegae Co. Ltd. | 2,120 | | 253,108 |
SK Telecom Co. Ltd. | 1,500 | | 208,728 |
TOTAL KOREA (SOUTH) | | 6,511,196 |
Malaysia - 4.0% |
Berjaya Sports Toto BHD | 103,250 | | 85,317 |
British American Tobacco (Malaysia) BHD | 14,000 | | 140,000 |
Gamuda BHD | 63,000 | | 86,211 |
Genting BHD | 39,400 | | 124,421 |
Hong Leong Bank BHD | 77,000 | | 83,079 |
IJM Corp. BHD | 58,000 | | 67,463 |
Malayan Banking BHD | 98,500 | | 204,776 |
Public Bank BHD (For. Reg.) | 304,500 | | 192,316 |
Tanjong PLC | 16,000 | | 39,368 |
TOTAL MALAYSIA | | 1,022,951 |
Singapore - 8.3% |
DBS Group Holdings Ltd. | 66,463 | | 326,130 |
Oversea-Chinese Banking Corp. Ltd. | 46,604 | | 248,397 |
Sembcorp Industries Ltd. | 142,000 | | 94,506 |
Singapore Airlines Ltd. | 52,000 | | 277,157 |
Singapore Press Holdings Ltd. | 19,298 | | 179,592 |
Singapore Technologies Engineering Ltd. | 155,000 | | 139,876 |
Singapore Telecommunications Ltd. | 164,000 | | 134,123 |
United Overseas Bank Ltd. | 93,470 | | 548,273 |
Venture Corp. Ltd. | 19,000 | | 158,601 |
TOTAL SINGAPORE | | 2,106,655 |
Taiwan - 15.4% |
Advanced Semiconductor Engineering, Inc. (a) | 163,000 | | 84,189 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Taiwan - continued |
Ambit Microsystems Corp. | 30,000 | | $ 85,653 |
Chinatrust Financial Holding Co. (a) | 237,733 | | 185,548 |
Evergreen Marine Corp. | 359,000 | | 219,418 |
Formosa Chemicals & Fibre Corp. | 229,800 | | 221,558 |
Formosa Plastic Corp. | 512,350 | | 632,168 |
Fubon Financial Holding Co. Ltd. | 262,000 | | 178,927 |
Hon Hai Precision Industries Co. Ltd. | 78,320 | | 244,961 |
Nan Ya Plastics Corp. | 337,000 | | 292,034 |
Quanta Computer, Inc. | 117,650 | | 205,930 |
Siliconware Precision Industries Co. Ltd. (a) | 181,000 | | 85,696 |
Taiwan Semiconductor Manufacturing Co. Ltd. (a) | 625,482 | | 857,906 |
United Microelectronics Corp. (a) | 725,444 | | 416,324 |
Wan Hai Lines Ltd. | 140,000 | | 113,286 |
Yuanta Core Pacific Securities Co. Ltd. | 155,555 | | 66,953 |
TOTAL TAIWAN | | 3,890,551 |
Thailand - 6.0% |
Advanced Info Service PCL (For. Reg.) | 119,800 | | 126,002 |
Bangkok Bank Ltd. PCL (For. Reg.) (a) | 290,900 | | 407,947 |
Kasikornbank PCL (For. Reg.) (a) | 151,000 | | 127,936 |
Land & House PCL (For. Reg.) | 1,043,100 | | 187,726 |
Major Cineplex Group PCL (For. Reg.) | 15,200 | | 23,092 |
Siam Cement PCL (For. Reg.) | 124,400 | | 369,260 |
Siam Commercial Bank PCL (For. Reg.) (a) | 343,000 | | 274,576 |
TelecomAsia Corp. PCL (a) | 100 | | 11 |
TelecomAsia Corp. PCL rights 4/30/08 | 190,863 | | 0 |
TOTAL THAILAND | | 1,516,550 |
United Kingdom - 3.5% |
HSBC Holdings PLC (Hong Kong) (Reg.) | 82,176 | | 898,841 |
TOTAL COMMON STOCKS (Cost $22,234,309) | 23,163,423 |
Nonconvertible Preferred Stocks - 1.6% |
| | | |
Korea (South) - 1.6% |
Hyundai Motor Co. Ltd. | 7,430 | | 83,201 |
Samsung Electronics Co. Ltd. | 2,570 | | 315,298 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $429,595) | 398,499 |
Money Market Funds - 7.1% |
| Shares | | Value (Note 1) |
Fidelity Cash Central Fund, 1.29% (b)
(Cost $1,798,412) | 1,798,412 | | $ 1,798,412 |
TOTAL INVESTMENT PORTFOLIO - 100.1% (Cost $24,462,316) | | 25,360,334 |
NET OTHER ASSETS - (0.1)% | | (24,809) |
NET ASSETS - 100% | $ 25,335,525 |
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 $15,059,477 and $17,371,390, respectively. |
Income Tax Information |
At October 31, 2002, the fund had a capital loss carryforward of approximately $9,787,000 of which $3,098,000, $5,266,000 and $1,423,000 will expire on October 31, 2006, 2009 and 2010, respectively. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| April 30, 2003 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $24,462,316) - See accompanying schedule | | $ 25,360,334 |
Foreign currency held at value (cost $121,728) | | 121,592 |
Receivable for investments sold | | 137,473 |
Receivable for fund shares sold | | 658,868 |
Dividends receivable | | 103,988 |
Interest receivable | | 519 |
Receivable from investment adviser for expense reductions | | 20,154 |
Other receivables | | 309,154 |
Total assets | | 26,712,082 |
| | |
Liabilities | | |
Payable for investments purchased | $ 1,253,941 | |
Payable for fund shares redeemed | 34,933 | |
Accrued management fee | 14,429 | |
Distribution fees payable | 8,240 | |
Other payables and accrued expenses | 65,014 | |
Total liabilities | | 1,376,557 |
| | |
Net Assets | | $ 25,335,525 |
Net Assets consist of: | | |
Paid in capital | | $ 35,271,763 |
Undistributed net investment income | | 4,697 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (10,841,079) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 900,144 |
Net Assets | | $ 25,335,525 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| April 30, 2003 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share
($17,619,619 ÷ 1,959,950 shares) | | $ 8.99 |
| | |
Maximum offering price per share (100/94.25 of $8.99) | | $ 9.54 |
Class T:
Net Asset Value and redemption price per share ($2,966,824 ÷ 333,447 shares) | | $ 8.90 |
| | |
Maximum offering price per share (100/96.50 of $8.90) | | $ 9.22 |
Class B:
Net Asset Value and offering price per share ($2,472,450 ÷ 283,436 shares) A | | $ 8.72 |
| | |
Class C:
Net Asset Value and offering price per share ($1,935,067 ÷ 221,582 shares) A | | $ 8.73 |
| | |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($341,565 ÷ 37,673 shares) | | $ 9.07 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
| Six months ended April 30, 2003 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 380,158 |
Interest | | 2,946 |
| | 383,104 |
Less foreign taxes withheld | | (46,330) |
Total income | | 336,774 |
| | |
Expenses | | |
Management fee | $ 96,422 | |
Transfer agent fees | 59,012 | |
Distribution fees | 55,061 | |
Accounting fees and expenses | 30,093 | |
Non-interested trustees' compensation | 55 | |
Custodian fees and expenses | 75,094 | |
Registration fees | 45,066 | |
Audit | 51,098 | |
Legal | 997 | |
Miscellaneous | 44 | |
Total expenses before reductions | 412,942 | |
Expense reductions | (130,120) | 282,822 |
Net investment income (loss) | | 53,952 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities | (795,506) | |
Foreign currency transactions | (29,691) | |
Total net realized gain (loss) | | (825,197) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (1,285,243) | |
Assets and liabilities in foreign currencies | 4,772 | |
Total change in net unrealized appreciation (depreciation) | | (1,280,471) |
Net gain (loss) | | (2,105,668) |
Net increase (decrease) in net assets resulting from operations | | $ (2,051,716) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended
April 30, 2003
(Unaudited) | Year ended
October 31,
2002 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 53,952 | $ (101,155) |
Net realized gain (loss) | (825,197) | (1,376,366) |
Change in net unrealized appreciation (depreciation) | (1,280,471) | 3,700,512 |
Net increase (decrease) in net assets resulting
from operations | (2,051,716) | 2,222,991 |
Share transactions - net increase (decrease) | (954,576) | 738,683 |
Total increase (decrease) in net assets | (3,006,292) | 2,961,674 |
| | |
Net Assets | | |
Beginning of period | 28,341,817 | 25,380,143 |
End of period (including undistributed net investment income of $4,697 and accumulated net investment loss of $49,255, respectively) | $ 25,335,525 | $ 28,341,817 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 H | 1998 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 9.89 | $ 9.15 | $ 12.29 | $ 15.01 | $ 9.61 | $ 11.59 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .03 | (.02) | (.03) | (.12) | (.03) | .03 |
Net realized and unrealized gain (loss) | (.93) | .76 | (3.11) | (2.60) | 5.30 | (1.73) |
Total from investment operations | (.90) | .74 | (3.14) | (2.72) | 5.27 | (1.70) |
Distributions from net investment income | - | - | - | - | - | (.07) |
Distributions in excess of net investment income | - | - | - | - | - | (.03) |
Distributions from net realized gain | - | - | - | - | - | (.13) |
Distributions in excess of net realized gain | - | - | - | - | - | (.06) |
Total distributions | - | - | - | - | - | (.29) |
Redemption fees added to paid in capital E | - | - | - | - | .13 | .01 F |
Net asset value, end of period | $ 8.99 | $ 9.89 | $ 9.15 | $ 12.29 | $ 15.01 | $ 9.61 |
Total Return B, C, D | (9.10)% | 8.09% | (25.55)% | (18.12)% | 56.19% | (14.43)% |
Ratios to Average Net Assets G | | | | | |
Expenses before expense reductions | 2.87% A | 2.56% | 2.56% | 1.98% | 2.04% | 2.57% |
Expenses net of voluntary waivers, if any | 2.00% A | 2.00% | 2.00% | 1.98% | 2.04% | 2.57% |
Expenses net of all reductions | 1.99% A | 1.98% | 1.97% | 1.96% | 2.03% | 2.54% |
Net investment income (loss) | .58% A | (.17)% | (.26)% | (.69)% | (.22)% | .30% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 17,620 | $ 18,314 | $ 18,151 | $ 31,386 | $ 82,492 | $ 65,751 |
Portfolio turnover rate | 119% A | 121% | 62% | 96% | 62% | 42% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FThe fund incurred expenses of $.005 per share in connection with its tender offer which offset by redemption fees collected as part of the tender offer. GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. HPrior to June 16, 1999, the fund operated as a closed-end investment company. Shares of the fund existing at the time of its conversion to an open-ended management company were exchanged for Class A shares.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 9.81 | $ 9.09 | $ 12.25 | $ 15.01 | $ 14.44 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .02 | (.05) | (.06) | (.14) | .13 |
Net realized and unrealized gain (loss) | (.93) | .77 | (3.10) | (2.62) | .34 H |
Total from investment operations | (.91) | .72 | (3.16) | (2.76) | .47 |
Redemption fees added to paid in capital E | - | - | - | - | .10 H |
Net asset value, end of period | $ 8.90 | $ 9.81 | $ 9.09 | $ 12.25 | $ 15.01 |
Total Return B, C, D | (9.28)% | 7.92% | (25.80)% | (18.39)% | 3.95% |
Ratios to Average Net Assets G | | | | |
Expenses before expense reductions | 3.51% A | 3.16% | 3.41% | 2.17% | 2.50% A |
Expenses net of voluntary waivers, if any | 2.25% A | 2.25% | 2.25% | 2.17% | 2.25% A |
Expenses net of all reductions | 2.23% A | 2.23% | 2.22% | 2.15% | 2.25% A |
Net investment income (loss) | .33% A | (.42)% | (.51)% | (.88)% | 2.34% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 2,967 | $ 4,347 | $ 2,842 | $ 4,165 | $ 1,405 |
Portfolio turnover rate | 119% A | 121% | 62% | 96% | 62% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFor the period June 16, 1999 (commencement of sale of shares) to October 31, 1999. GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. HPer share amounts have been reclassified to reflect redemption fees on a class level.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 9.63 | $ 8.97 | $ 12.15 | $ 14.98 | $ 14.44 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | (.01) | (.10) | (.11) | (.24) | .08 |
Net realized and unrealized gain (loss) | (.90) | .76 | (3.07) | (2.59) | .37 H |
Total from investment operations | (.91) | .66 | (3.18) | (2.83) | .45 |
Redemption fees added to paid in capital E | - | - | - | - | .09 H |
Net asset value, end of period | $ 8.72 | $ 9.63 | $ 8.97 | $ 12.15 | $ 14.98 |
Total Return B, C, D | (9.45)% | 7.36% | (26.17)% | (18.89)% | 3.74% |
Ratios to Average Net Assets G | | | | |
Expenses before expense reductions | 3.97% A | 3.63% | 3.66% | 2.77% | 3.19% A |
Expenses net of voluntary waivers, if any | 2.75% A | 2.75% | 2.75% | 2.77% | 2.75% A |
Expenses net of all reductions | 2.73% A | 2.73% | 2.72% | 2.75% | 2.75% A |
Net investment income (loss) | (.17)% A | (.92)% | (1.01)% | (1.48)% | 1.38% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 2,472 | $ 2,787 | $ 2,466 | $ 3,664 | $ 977 |
Portfolio turnover rate | 119% A | 121% | 62% | 96% | 62% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFor the period June 16, 1999 (commencement of sale of shares) to October 31, 1999. GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. HPer share amounts have been reclassified to reflect redemption fees on a class level.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 9.64 | $ 8.98 | $ 12.16 | $ 14.97 | $ 14.44 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | (.01) | (.10) | (.11) | (.23) | .04 |
Net realized and unrealized gain (loss) | (.90) | .76 | (3.07) | (2.58) | .38 H |
Total from investment operations | (.91) | .66 | (3.18) | (2.81) | .42 |
Redemption fees added to paid in capital E | - | - | - | - | .11 H |
Net asset value, end of period | $ 8.73 | $ 9.64 | $ 8.98 | $ 12.16 | $ 14.97 |
Total Return B, C, D | (9.44)% | 7.35% | (26.15)% | (18.77)% | 3.67% |
Ratios to Average Net Assets G | | | | |
Expenses before expense reductions | 3.81% A | 3.53% | 3.52% | 2.68% | 3.00% A |
Expenses net of voluntary waivers, if any | 2.75% A | 2.75% | 2.75% | 2.68% | 2.75% A |
Expenses net of all reductions | 2.73% A | 2.73% | 2.72% | 2.66% | 2.75% A |
Net investment income (loss) | (.17)% A | (.92)% | (1.01)% | (1.40)% | .75% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 1,935 | $ 2,220 | $ 1,263 | $ 2,124 | $ 614 |
Portfolio turnover rate | 119% A | 121% | 62% | 96% | 62% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFor the period June 16, 1999 (commencement of sale of shares) to October 31, 1999. GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. HPer share amounts have been reclassified to reflect redemption fees on a class level.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 E |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 9.97 | $ 9.21 | $ 12.34 | $ 15.03 | $ 14.44 |
Income from Investment Operations | | | | | |
Net investment income (loss) D | .04 | .01 | - H | (.03) | .05 |
Net realized and unrealized gain (loss) | (.94) | .75 | (3.13) | (2.66) | .40 G |
Total from investment operations | (.90) | .76 | (3.13) | (2.69) | .45 |
Redemption fees added to paid in capital D | - | - | - | - | .14 G |
Net asset value, end of period | $ 9.07 | $ 9.97 | $ 9.21 | $ 12.34 | $ 15.03 |
Total Return B, C | (9.03)% | 8.25% | (25.36)% | (17.90)% | 4.09% |
Ratios to Average Net Assets F | | | | |
Expenses before expense reductions | 2.49% A | 2.18% | 2.20% | 1.45% | 1.97% A |
Expenses net of voluntary waivers, if any | 1.75% A | 1.75% | 1.75% | 1.45% | 1.75% A |
Expenses net of all reductions | 1.73% A | 1.73% | 1.72% | 1.42% | 1.75% A |
Net investment income (loss) | .84% A | .08% | (.01)% | (.16)% | .90% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 342 | $ 674 | $ 658 | $ 1,523 | $ 172 |
Portfolio turnover rate | 119% A | 121% | 62% | 96% | 62% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DCalculated based on average shares outstanding during the period. EFor the period June 16, 1999 (commencement of sale of shares) to October 31, 1999. FExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. GPer share amounts have been reclassified to reflect redemption fees on a class level. HAmounts represent less than $.01 per-share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2003 (Unaudited)
1. Significant Accounting Policies.
Fidelity Advisor Emerging Asia Fund (the fund) is a fund of Fidelity Advisor Series VIII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
The fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
The fund's 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 fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. If an event that is expected to materially affect the value of a security occurs after the close of an exchange or market on which that security trades, but prior to the NAV calculation, then that security will be fair valued taking the event into account. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
1. Significant Accounting Policies - continued
Foreign Currency - continued
Foreign denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. 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 fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, which includes amortization of premium and accretion of discount on debt securities, as required, 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.
Income Tax Information and Distributions to Shareholders. Each year the fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. Foreign taxes are provided for based on each fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Income dividends and capital gain distributions are declared separately for each class. 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. Capital accounts within the financial statements are adjusted for permanent and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), net operating losses, capital loss carryforwards and losses deferred due to wash sales.
Semiannual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investments including unrealized appreciation (depreciation) as of period end was as follows:
Unrealized appreciation | $ 3,060,431 | | |
Unrealized depreciation | (2,349,103) | |
Net unrealized appreciation (depreciation) | $ 711,328 | |
Cost for federal income tax purposes | $ 24,649,006 | |
2. Operating Policies.
Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. The custodian bank receives the collateral, which is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
3. Purchases and Sales of Investments.
Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee.
The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the fund's average net assets and a group fee rate that averaged .28% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .73% of the fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. Class A and Class T Plans also authorize the use of brokerage
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
commissions to pay distribution expenses. In addition, FDC may pay financial intermediaries for selling shares of the fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, the total amounts paid to and retained by FDC and the amount of distribution expenses paid with brokerage commissions were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC | Paid with Commissions |
Class A | 0% | .25% | $ 21,373 | $ 3,095 | $ - |
Class T | .25% | .25% | 9,082 | 76 | - |
Class B | .75% | .25% | 13,682 | 10,287 | - |
Class C | .75% | .25% | 10,924 | 4,262 | - |
| | | $ 55,061 | $ 17,720 | $ - |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares of the fund. FDC receives the proceeds of contingent deferred sales charge (CDSC) levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, and .25% for certain purchases of Class A and Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC | |
Class A | $ 1,132 | |
Class T | 679 | |
Class B* | 5,346 | |
Class C* | 3,317 | |
| $ 10,474 | |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales
are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent (collectively referred to as the transfer agent) for each class of the fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the fund. FIIOC pays for
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
typesetting, printing and mailing of all shareholder reports, except proxy statements. For the period, the following amounts were paid to FIIOC:
| Amount | % of Average
Net Assets |
Class A | $ 29,786 | .35* |
Class T | 13,240 | .73* |
Class B | 9,539 | .70* |
Class C | 5,813 | .53* |
Institutional Class | 634 | .21* |
| $ 59,012 | |
* Annualized
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the fund's accounting records. The fee is based on the level of average net assets for the month plus out-of-pocket expenses.
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $2,932 for the period.
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $3.5 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 fund has agreed to pay commitment fees on its pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Expense Reductions.
FMR agreed to reimburse the classes of the fund to the extent operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, are excluded from this reimbursement.
| Expense
Limitations | Reimbursement
from adviser |
| | |
Class A | 2.00% | $ 74,672 |
Class T | 2.25% | 22,837 |
Class B | 2.75% | 16,755 |
Class C | 2.75% | 11,562 |
Institutional Class | 1.75% | 2,214 |
| | $ 128,040 |
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services may include payments of expenses on behalf of the fund to support distribution of fund shares for Class A and Class T ("Distribution Expense Reduction") and to pay other fund expenses, such as transfer agent fees ("Other Expense Reduction") collectively referred to as "Directed Brokerage" in the accompanying table. Directed brokerage generally benefits all shareholders of each class by reducing fund expenses. Each of Class A and Class T shareholders' Other Expense Reduction benefit is reduced by the amount of any Distribution Expense Reduction.
| Directed Brokerage |
| Distribution
expense reduction | Other
expense reduction |
Fund Level | $ - | $ 2,080 |
Class A | - | - |
Class T | - | - |
| $ - | $ 2,080 |
Semiannual Report
7. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2003 | Year ended
October 31,
2002 | Six months ended
April 30,
2003 | Year ended
October 31,
2002 |
Class A | | | | |
Shares sold | 1,063,191 | 1,558,955 | $ 9,864,713 | $ 17,017,475 |
Shares redeemed | (954,587) | (1,691,949) | (9,257,168) | (18,896,118) |
Net increase (decrease) | 108,604 | (132,994) | $ 607,545 | $ (1,878,643) |
Class T | | | | |
Shares sold | 292,998 | 306,332 | $ 2,784,729 | $ 3,507,758 |
Shares redeemed | (402,527) | (175,919) | (3,921,139) | (1,903,003) |
Net increase (decrease) | (109,529) | 130,413 | $ (1,136,410) | $ 1,604,755 |
Class B | | | | |
Shares sold | 51,740 | 136,244 | $ 477,829 | $ 1,467,888 |
Shares redeemed | (57,574) | (121,792) | (529,542) | (1,276,878) |
Net increase (decrease) | (5,834) | 14,452 | $ (51,713) | $ 191,010 |
Class C | | | | |
Shares sold | 115,229 | 353,152 | $ 1,064,659 | $ 3,841,374 |
Shares redeemed | (123,839) | (263,600) | (1,140,731) | (2,864,649) |
Net increase (decrease) | (8,610) | 89,552 | $ (76,072) | $ 976,725 |
Institutional Class | | | | |
Shares sold | 146,011 | 574,658 | $ 1,452,598 | $ 6,068,713 |
Shares redeemed | (175,976) | (578,457) | (1,750,524) | (6,223,877) |
Net increase (decrease) | (29,965) | (3,799) | $ (297,926) | $ (155,164) |
Semiannual Report
Semiannual Report
Semiannual Report
Semiannual Report
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 International
Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corp.
Boston, MA
Transfer and Shareholder
Servicing Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
Semiannual Report
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(Fidelity Investment logo)(registered trademark)
AEA-USAN-0603
1.784873.100
Fidelity® Advisor
Emerging Asia
Fund - Institutional Class
Semiannual Report
April 30, 2003
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
| | |
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.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.
Neither the fund nor Fidelity Distributors Corporation is a bank.
For more information on any Fidelity Advisor fund, including charges and expenses, contact your investment professional for a free prospectus. Read it carefully before you invest or send money.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
This shareholder update and report on the performance of your fund is among the first to be produced under the new Sarbanes-Oxley Public Company Accounting and Investor Protection Act of 2002. This act requires that public companies certify, under penalty of law, the financial information they report to shareholders. It was adopted by Congress in reaction to several incidents of corporate malfeasance that brought the integrity of management of some publicly traded companies into question.
After the act was signed into law, the Securities and Exchange Commission interpreted it as applying to mutual funds as well as public companies. Thus, every mutual fund now is required to certify that the financial information provided in annual and semiannual reports to shareholders fully and fairly presents its financial position.
There is little doubt that the intent of Congress and regulators in this matter is a noble one - to improve the accuracy and accountability of financial reporting to investors by corporate America. We in no way condone any of the activities that brought about these requirements, and we welcome any and every reasonable proposal to strengthen investor protection and information disclosure.
That said, we are proud that mutual funds have always provided full and fair disclosure. Governed by the Investment Company Act of 1940 - and monitored and regulated by federal and state agencies, industry oversight associations, and independent directors - mutual funds are among the most transparent of all financial products. For example, the prices of mutual fund shares are established and published every business day, and the majority of members of the Board of Trustees that oversees our funds are not affiliated with the business of Fidelity. The disclosure standards of mutual funds actually have become models for governance and transparency across corporate America.
We are, of course, complying in full with the letter of this new requirement and hope that any future efforts by Congress to reassure investors about the honesty of corporate America will focus on practical and substantive solutions of genuine value to shareholders.
This sort of careful consideration was evident as Congress deliberated President Bush's tax cut package this spring, then enacted legislation that contains a variety of benefits for American families, investors and businesses. Although the final bill did not completely eliminate the tax that individual investors pay when they receive dividends from companies, it still will benefit American investors, and we applaud it in the spirit of compromise that marked the debate in Congress.
At Fidelity, we are committed to acting at all times in accordance with the highest standards of integrity and in the best interests of our fund shareholders. We are proud of the amount of information we provide to those who invest in our funds and pleased to continue that level of communication with you in these reports.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Investment Changes
Top Ten Stocks as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Samsung Electronics Co. Ltd. | 9.4 | 8.7 |
HSBC Holdings PLC (Hong Kong) (Reg.) | 3.5 | 2.1 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 3.4 | 2.6 |
Hutchison Whampoa Ltd. | 2.7 | 3.5 |
Formosa Plastic Corp. | 2.5 | 1.3 |
KT Corp. | 2.2 | 2.3 |
United Overseas Bank Ltd. | 2.2 | 2.8 |
LG Electronics, Inc. | 2.2 | 1.7 |
LG Chemical Ltd. | 1.9 | 1.6 |
Hang Seng Bank Ltd. | 1.9 | 2.3 |
| 31.9 | |
Top Five Market Sectors as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 25.5 | 31.3 |
Information Technology | 21.6 | 23.8 |
Materials | 13.0 | 6.7 |
Consumer Discretionary | 8.7 | 12.5 |
Industrials | 8.5 | 6.2 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2003 | As of October 31, 2002 |
| Stocks 93.0% | | | Stocks 98.7% | |
| Short-Term
Investments and
Net Other Assets 7.0% | | | Short-Term
Investments and
Net Other Assets 1.3% | |
Semiannual Report
Investments April 30, 2003 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 91.4% |
| Shares | | Value (Note 1) |
China - 5.8% |
Aluminum Corp. of China Ltd. (H Shares) | 726,000 | | $ 126,598 |
China Oilfield Services Ltd. (H Shares) | 496,000 | | 104,935 |
China Petroleum & Chemical Corp. (H Shares) | 2,100,000 | | 414,661 |
PetroChina Co. Ltd. (H Shares) | 2,116,000 | | 482,935 |
Sinopec Shanghai Petrochemical Co. Ltd. (H Shares) (a) | 1,684,000 | | 261,264 |
Zhenhai Refining & Chemical Co. (H Shares) | 242,000 | | 72,918 |
TOTAL CHINA | | 1,463,311 |
Hong Kong - 16.1% |
ASM Pacific Technology Ltd. | 32,500 | | 80,634 |
Bank of East Asia Ltd. | 108,000 | | 200,099 |
Cheung Kong Holdings Ltd. | 86,000 | | 475,257 |
China Mobile (Hong Kong) Ltd. | 164,500 | | 329,329 |
CNOOC Ltd. | 141,500 | | 185,966 |
Esprit Holdings Ltd. | 56,000 | | 109,858 |
Hang Seng Bank Ltd. | 48,800 | | 483,360 |
Hong Kong & China Gas Co. Ltd. | 274,400 | | 323,687 |
Hutchison Whampoa Ltd. | 125,000 | | 695,589 |
Johnson Electric Holdings Ltd. | 417,500 | | 449,664 |
Li & Fung Ltd. | 338,000 | | 379,208 |
Sun Hung Kai Properties Ltd. | 79,000 | | 370,733 |
TOTAL HONG KONG | | 4,083,384 |
India - 6.0% |
Bajaj Auto Ltd. | 4,920 | | 50,219 |
Bharat Petroleum Corp. Ltd. | 14,000 | | 68,373 |
Dr. Reddy's Laboratories Ltd. | 2,660 | | 49,105 |
Housing Development Finance Corp. Ltd. | 17,750 | | 127,949 |
ICICI Bank Ltd. | 56,081 | | 143,876 |
Infosys Technologies Ltd. | 4,280 | | 252,409 |
ITC Ltd. | 100 | | 1,441 |
Ranbaxy Laboratories Ltd. | 12,744 | | 181,788 |
Reliance Industries Ltd. | 53,550 | | 311,092 |
State Bank of India | 18,925 | | 111,402 |
Tata Engineering & Locomotive Co. Ltd. (a) | 45,720 | | 145,798 |
Wipro Ltd. | 4,220 | | 77,324 |
TOTAL INDIA | | 1,520,776 |
Indonesia - 0.6% |
PT Bank PAN Indonesia Tbk (a) | 1,093,000 | | 29,614 |
PT Telkomunikasi Indonesia Tbk | 253,000 | | 119,594 |
TOTAL INDONESIA | | 149,208 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Korea (South) - 25.7% |
Hanil Cement Co. Ltd. | 2,470 | | $ 89,892 |
Hanwha Chemical Corp. (a) | 37,170 | | 115,075 |
Honam Petrochemical Corp. | 13,540 | | 340,590 |
Kookmin Bank | 16,209 | | 455,106 |
KT Corp. | 13,400 | | 550,564 |
LG Chemical Ltd. | 14,640 | | 485,790 |
LG Electronics, Inc. | 15,820 | | 545,787 |
POSCO | 4,060 | | 342,651 |
S-Oil Corp. | 10,550 | | 171,997 |
Samsung Electro-Mechanics Co. Ltd. | 1,820 | | 53,723 |
Samsung Electronics Co. Ltd. | 9,517 | | 2,390,026 |
Samsung Fire & Marine Insurance Co. Ltd. | 6,030 | | 297,900 |
Samsung SDI Co. Ltd. | 3,360 | | 210,259 |
Shinsegae Co. Ltd. | 2,120 | | 253,108 |
SK Telecom Co. Ltd. | 1,500 | | 208,728 |
TOTAL KOREA (SOUTH) | | 6,511,196 |
Malaysia - 4.0% |
Berjaya Sports Toto BHD | 103,250 | | 85,317 |
British American Tobacco (Malaysia) BHD | 14,000 | | 140,000 |
Gamuda BHD | 63,000 | | 86,211 |
Genting BHD | 39,400 | | 124,421 |
Hong Leong Bank BHD | 77,000 | | 83,079 |
IJM Corp. BHD | 58,000 | | 67,463 |
Malayan Banking BHD | 98,500 | | 204,776 |
Public Bank BHD (For. Reg.) | 304,500 | | 192,316 |
Tanjong PLC | 16,000 | | 39,368 |
TOTAL MALAYSIA | | 1,022,951 |
Singapore - 8.3% |
DBS Group Holdings Ltd. | 66,463 | | 326,130 |
Oversea-Chinese Banking Corp. Ltd. | 46,604 | | 248,397 |
Sembcorp Industries Ltd. | 142,000 | | 94,506 |
Singapore Airlines Ltd. | 52,000 | | 277,157 |
Singapore Press Holdings Ltd. | 19,298 | | 179,592 |
Singapore Technologies Engineering Ltd. | 155,000 | | 139,876 |
Singapore Telecommunications Ltd. | 164,000 | | 134,123 |
United Overseas Bank Ltd. | 93,470 | | 548,273 |
Venture Corp. Ltd. | 19,000 | | 158,601 |
TOTAL SINGAPORE | | 2,106,655 |
Taiwan - 15.4% |
Advanced Semiconductor Engineering, Inc. (a) | 163,000 | | 84,189 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Taiwan - continued |
Ambit Microsystems Corp. | 30,000 | | $ 85,653 |
Chinatrust Financial Holding Co. (a) | 237,733 | | 185,548 |
Evergreen Marine Corp. | 359,000 | | 219,418 |
Formosa Chemicals & Fibre Corp. | 229,800 | | 221,558 |
Formosa Plastic Corp. | 512,350 | | 632,168 |
Fubon Financial Holding Co. Ltd. | 262,000 | | 178,927 |
Hon Hai Precision Industries Co. Ltd. | 78,320 | | 244,961 |
Nan Ya Plastics Corp. | 337,000 | | 292,034 |
Quanta Computer, Inc. | 117,650 | | 205,930 |
Siliconware Precision Industries Co. Ltd. (a) | 181,000 | | 85,696 |
Taiwan Semiconductor Manufacturing Co. Ltd. (a) | 625,482 | | 857,906 |
United Microelectronics Corp. (a) | 725,444 | | 416,324 |
Wan Hai Lines Ltd. | 140,000 | | 113,286 |
Yuanta Core Pacific Securities Co. Ltd. | 155,555 | | 66,953 |
TOTAL TAIWAN | | 3,890,551 |
Thailand - 6.0% |
Advanced Info Service PCL (For. Reg.) | 119,800 | | 126,002 |
Bangkok Bank Ltd. PCL (For. Reg.) (a) | 290,900 | | 407,947 |
Kasikornbank PCL (For. Reg.) (a) | 151,000 | | 127,936 |
Land & House PCL (For. Reg.) | 1,043,100 | | 187,726 |
Major Cineplex Group PCL (For. Reg.) | 15,200 | | 23,092 |
Siam Cement PCL (For. Reg.) | 124,400 | | 369,260 |
Siam Commercial Bank PCL (For. Reg.) (a) | 343,000 | | 274,576 |
TelecomAsia Corp. PCL (a) | 100 | | 11 |
TelecomAsia Corp. PCL rights 4/30/08 | 190,863 | | 0 |
TOTAL THAILAND | | 1,516,550 |
United Kingdom - 3.5% |
HSBC Holdings PLC (Hong Kong) (Reg.) | 82,176 | | 898,841 |
TOTAL COMMON STOCKS (Cost $22,234,309) | 23,163,423 |
Nonconvertible Preferred Stocks - 1.6% |
| | | |
Korea (South) - 1.6% |
Hyundai Motor Co. Ltd. | 7,430 | | 83,201 |
Samsung Electronics Co. Ltd. | 2,570 | | 315,298 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $429,595) | 398,499 |
Money Market Funds - 7.1% |
| Shares | | Value (Note 1) |
Fidelity Cash Central Fund, 1.29% (b)
(Cost $1,798,412) | 1,798,412 | | $ 1,798,412 |
TOTAL INVESTMENT PORTFOLIO - 100.1% (Cost $24,462,316) | | 25,360,334 |
NET OTHER ASSETS - (0.1)% | | (24,809) |
NET ASSETS - 100% | $ 25,335,525 |
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 $15,059,477 and $17,371,390, respectively. |
Income Tax Information |
At October 31, 2002, the fund had a capital loss carryforward of approximately $9,787,000 of which $3,098,000, $5,266,000 and $1,423,000 will expire on October 31, 2006, 2009 and 2010, respectively. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| April 30, 2003 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $24,462,316) - See accompanying schedule | | $ 25,360,334 |
Foreign currency held at value (cost $121,728) | | 121,592 |
Receivable for investments sold | | 137,473 |
Receivable for fund shares sold | | 658,868 |
Dividends receivable | | 103,988 |
Interest receivable | | 519 |
Receivable from investment adviser for expense reductions | | 20,154 |
Other receivables | | 309,154 |
Total assets | | 26,712,082 |
| | |
Liabilities | | |
Payable for investments purchased | $ 1,253,941 | |
Payable for fund shares redeemed | 34,933 | |
Accrued management fee | 14,429 | |
Distribution fees payable | 8,240 | |
Other payables and accrued expenses | 65,014 | |
Total liabilities | | 1,376,557 |
| | |
Net Assets | | $ 25,335,525 |
Net Assets consist of: | | |
Paid in capital | | $ 35,271,763 |
Undistributed net investment income | | 4,697 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (10,841,079) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 900,144 |
Net Assets | | $ 25,335,525 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| April 30, 2003 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share
($17,619,619 ÷ 1,959,950 shares) | | $ 8.99 |
| | |
Maximum offering price per share (100/94.25 of $8.99) | | $ 9.54 |
Class T:
Net Asset Value and redemption price per share ($2,966,824 ÷ 333,447 shares) | | $ 8.90 |
| | |
Maximum offering price per share (100/96.50 of $8.90) | | $ 9.22 |
Class B:
Net Asset Value and offering price per share ($2,472,450 ÷ 283,436 shares) A | | $ 8.72 |
| | |
Class C:
Net Asset Value and offering price per share ($1,935,067 ÷ 221,582 shares) A | | $ 8.73 |
| | |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($341,565 ÷ 37,673 shares) | | $ 9.07 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
| Six months ended April 30, 2003 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 380,158 |
Interest | | 2,946 |
| | 383,104 |
Less foreign taxes withheld | | (46,330) |
Total income | | 336,774 |
| | |
Expenses | | |
Management fee | $ 96,422 | |
Transfer agent fees | 59,012 | |
Distribution fees | 55,061 | |
Accounting fees and expenses | 30,093 | |
Non-interested trustees' compensation | 55 | |
Custodian fees and expenses | 75,094 | |
Registration fees | 45,066 | |
Audit | 51,098 | |
Legal | 997 | |
Miscellaneous | 44 | |
Total expenses before reductions | 412,942 | |
Expense reductions | (130,120) | 282,822 |
Net investment income (loss) | | 53,952 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities | (795,506) | |
Foreign currency transactions | (29,691) | |
Total net realized gain (loss) | | (825,197) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (1,285,243) | |
Assets and liabilities in foreign currencies | 4,772 | |
Total change in net unrealized appreciation (depreciation) | | (1,280,471) |
Net gain (loss) | | (2,105,668) |
Net increase (decrease) in net assets resulting from operations | | $ (2,051,716) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended
April 30, 2003
(Unaudited) | Year ended
October 31,
2002 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 53,952 | $ (101,155) |
Net realized gain (loss) | (825,197) | (1,376,366) |
Change in net unrealized appreciation (depreciation) | (1,280,471) | 3,700,512 |
Net increase (decrease) in net assets resulting
from operations | (2,051,716) | 2,222,991 |
Share transactions - net increase (decrease) | (954,576) | 738,683 |
Total increase (decrease) in net assets | (3,006,292) | 2,961,674 |
| | |
Net Assets | | |
Beginning of period | 28,341,817 | 25,380,143 |
End of period (including undistributed net investment income of $4,697 and accumulated net investment loss of $49,255, respectively) | $ 25,335,525 | $ 28,341,817 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 H | 1998 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 9.89 | $ 9.15 | $ 12.29 | $ 15.01 | $ 9.61 | $ 11.59 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .03 | (.02) | (.03) | (.12) | (.03) | .03 |
Net realized and unrealized gain (loss) | (.93) | .76 | (3.11) | (2.60) | 5.30 | (1.73) |
Total from investment operations | (.90) | .74 | (3.14) | (2.72) | 5.27 | (1.70) |
Distributions from net investment income | - | - | - | - | - | (.07) |
Distributions in excess of net investment income | - | - | - | - | - | (.03) |
Distributions from net realized gain | - | - | - | - | - | (.13) |
Distributions in excess of net realized gain | - | - | - | - | - | (.06) |
Total distributions | - | - | - | - | - | (.29) |
Redemption fees added to paid in capital E | - | - | - | - | .13 | .01 F |
Net asset value, end of period | $ 8.99 | $ 9.89 | $ 9.15 | $ 12.29 | $ 15.01 | $ 9.61 |
Total Return B, C, D | (9.10)% | 8.09% | (25.55)% | (18.12)% | 56.19% | (14.43)% |
Ratios to Average Net Assets G | | | | | |
Expenses before expense reductions | 2.87% A | 2.56% | 2.56% | 1.98% | 2.04% | 2.57% |
Expenses net of voluntary waivers, if any | 2.00% A | 2.00% | 2.00% | 1.98% | 2.04% | 2.57% |
Expenses net of all reductions | 1.99% A | 1.98% | 1.97% | 1.96% | 2.03% | 2.54% |
Net investment income (loss) | .58% A | (.17)% | (.26)% | (.69)% | (.22)% | .30% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 17,620 | $ 18,314 | $ 18,151 | $ 31,386 | $ 82,492 | $ 65,751 |
Portfolio turnover rate | 119% A | 121% | 62% | 96% | 62% | 42% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FThe fund incurred expenses of $.005 per share in connection with its tender offer which offset by redemption fees collected as part of the tender offer. GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. HPrior to June 16, 1999, the fund operated as a closed-end investment company. Shares of the fund existing at the time of its conversion to an open-ended management company were exchanged for Class A shares.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 9.81 | $ 9.09 | $ 12.25 | $ 15.01 | $ 14.44 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .02 | (.05) | (.06) | (.14) | .13 |
Net realized and unrealized gain (loss) | (.93) | .77 | (3.10) | (2.62) | .34 H |
Total from investment operations | (.91) | .72 | (3.16) | (2.76) | .47 |
Redemption fees added to paid in capital E | - | - | - | - | .10 H |
Net asset value, end of period | $ 8.90 | $ 9.81 | $ 9.09 | $ 12.25 | $ 15.01 |
Total Return B, C, D | (9.28)% | 7.92% | (25.80)% | (18.39)% | 3.95% |
Ratios to Average Net Assets G | | | | |
Expenses before expense reductions | 3.51% A | 3.16% | 3.41% | 2.17% | 2.50% A |
Expenses net of voluntary waivers, if any | 2.25% A | 2.25% | 2.25% | 2.17% | 2.25% A |
Expenses net of all reductions | 2.23% A | 2.23% | 2.22% | 2.15% | 2.25% A |
Net investment income (loss) | .33% A | (.42)% | (.51)% | (.88)% | 2.34% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 2,967 | $ 4,347 | $ 2,842 | $ 4,165 | $ 1,405 |
Portfolio turnover rate | 119% A | 121% | 62% | 96% | 62% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFor the period June 16, 1999 (commencement of sale of shares) to October 31, 1999. GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. HPer share amounts have been reclassified to reflect redemption fees on a class level.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 9.63 | $ 8.97 | $ 12.15 | $ 14.98 | $ 14.44 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | (.01) | (.10) | (.11) | (.24) | .08 |
Net realized and unrealized gain (loss) | (.90) | .76 | (3.07) | (2.59) | .37 H |
Total from investment operations | (.91) | .66 | (3.18) | (2.83) | .45 |
Redemption fees added to paid in capital E | - | - | - | - | .09 H |
Net asset value, end of period | $ 8.72 | $ 9.63 | $ 8.97 | $ 12.15 | $ 14.98 |
Total Return B, C, D | (9.45)% | 7.36% | (26.17)% | (18.89)% | 3.74% |
Ratios to Average Net Assets G | | | | |
Expenses before expense reductions | 3.97% A | 3.63% | 3.66% | 2.77% | 3.19% A |
Expenses net of voluntary waivers, if any | 2.75% A | 2.75% | 2.75% | 2.77% | 2.75% A |
Expenses net of all reductions | 2.73% A | 2.73% | 2.72% | 2.75% | 2.75% A |
Net investment income (loss) | (.17)% A | (.92)% | (1.01)% | (1.48)% | 1.38% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 2,472 | $ 2,787 | $ 2,466 | $ 3,664 | $ 977 |
Portfolio turnover rate | 119% A | 121% | 62% | 96% | 62% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFor the period June 16, 1999 (commencement of sale of shares) to October 31, 1999. GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. HPer share amounts have been reclassified to reflect redemption fees on a class level.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 9.64 | $ 8.98 | $ 12.16 | $ 14.97 | $ 14.44 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | (.01) | (.10) | (.11) | (.23) | .04 |
Net realized and unrealized gain (loss) | (.90) | .76 | (3.07) | (2.58) | .38 H |
Total from investment operations | (.91) | .66 | (3.18) | (2.81) | .42 |
Redemption fees added to paid in capital E | - | - | - | - | .11 H |
Net asset value, end of period | $ 8.73 | $ 9.64 | $ 8.98 | $ 12.16 | $ 14.97 |
Total Return B, C, D | (9.44)% | 7.35% | (26.15)% | (18.77)% | 3.67% |
Ratios to Average Net Assets G | | | | |
Expenses before expense reductions | 3.81% A | 3.53% | 3.52% | 2.68% | 3.00% A |
Expenses net of voluntary waivers, if any | 2.75% A | 2.75% | 2.75% | 2.68% | 2.75% A |
Expenses net of all reductions | 2.73% A | 2.73% | 2.72% | 2.66% | 2.75% A |
Net investment income (loss) | (.17)% A | (.92)% | (1.01)% | (1.40)% | .75% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 1,935 | $ 2,220 | $ 1,263 | $ 2,124 | $ 614 |
Portfolio turnover rate | 119% A | 121% | 62% | 96% | 62% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFor the period June 16, 1999 (commencement of sale of shares) to October 31, 1999. GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. HPer share amounts have been reclassified to reflect redemption fees on a class level.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 E |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 9.97 | $ 9.21 | $ 12.34 | $ 15.03 | $ 14.44 |
Income from Investment Operations | | | | | |
Net investment income (loss) D | .04 | .01 | - H | (.03) | .05 |
Net realized and unrealized gain (loss) | (.94) | .75 | (3.13) | (2.66) | .40 G |
Total from investment operations | (.90) | .76 | (3.13) | (2.69) | .45 |
Redemption fees added to paid in capital D | - | - | - | - | .14 G |
Net asset value, end of period | $ 9.07 | $ 9.97 | $ 9.21 | $ 12.34 | $ 15.03 |
Total Return B, C | (9.03)% | 8.25% | (25.36)% | (17.90)% | 4.09% |
Ratios to Average Net Assets F | | | | |
Expenses before expense reductions | 2.49% A | 2.18% | 2.20% | 1.45% | 1.97% A |
Expenses net of voluntary waivers, if any | 1.75% A | 1.75% | 1.75% | 1.45% | 1.75% A |
Expenses net of all reductions | 1.73% A | 1.73% | 1.72% | 1.42% | 1.75% A |
Net investment income (loss) | .84% A | .08% | (.01)% | (.16)% | .90% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 342 | $ 674 | $ 658 | $ 1,523 | $ 172 |
Portfolio turnover rate | 119% A | 121% | 62% | 96% | 62% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DCalculated based on average shares outstanding during the period. EFor the period June 16, 1999 (commencement of sale of shares) to October 31, 1999. FExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. GPer share amounts have been reclassified to reflect redemption fees on a class level. HAmounts represent less than $.01 per-share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2003 (Unaudited)
1. Significant Accounting Policies.
Fidelity Advisor Emerging Asia Fund (the fund) is a fund of Fidelity Advisor Series VIII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
The fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
The fund's 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 fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. If an event that is expected to materially affect the value of a security occurs after the close of an exchange or market on which that security trades, but prior to the NAV calculation, then that security will be fair valued taking the event into account. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
1. Significant Accounting Policies - continued
Foreign Currency - continued
Foreign denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. 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 fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, which includes amortization of premium and accretion of discount on debt securities, as required, 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.
Income Tax Information and Distributions to Shareholders. Each year the fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. Foreign taxes are provided for based on each fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Income dividends and capital gain distributions are declared separately for each class. 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. Capital accounts within the financial statements are adjusted for permanent and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), net operating losses, capital loss carryforwards and losses deferred due to wash sales.
Semiannual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investments including unrealized appreciation (depreciation) as of period end was as follows:
Unrealized appreciation | $ 3,060,431 | | |
Unrealized depreciation | (2,349,103) | |
Net unrealized appreciation (depreciation) | $ 711,328 | |
Cost for federal income tax purposes | $ 24,649,006 | |
2. Operating Policies.
Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. The custodian bank receives the collateral, which is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
3. Purchases and Sales of Investments.
Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee.
The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the fund's average net assets and a group fee rate that averaged .28% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .73% of the fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. Class A and Class T Plans also authorize the use of brokerage
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
commissions to pay distribution expenses. In addition, FDC may pay financial intermediaries for selling shares of the fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, the total amounts paid to and retained by FDC and the amount of distribution expenses paid with brokerage commissions were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC | Paid with Commissions |
Class A | 0% | .25% | $ 21,373 | $ 3,095 | $ - |
Class T | .25% | .25% | 9,082 | 76 | - |
Class B | .75% | .25% | 13,682 | 10,287 | - |
Class C | .75% | .25% | 10,924 | 4,262 | - |
| | | $ 55,061 | $ 17,720 | $ - |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares of the fund. FDC receives the proceeds of contingent deferred sales charge (CDSC) levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, and .25% for certain purchases of Class A and Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC | |
Class A | $ 1,132 | |
Class T | 679 | |
Class B* | 5,346 | |
Class C* | 3,317 | |
| $ 10,474 | |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales
are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent (collectively referred to as the transfer agent) for each class of the fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the fund. FIIOC pays for
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
typesetting, printing and mailing of all shareholder reports, except proxy statements. For the period, the following amounts were paid to FIIOC:
| Amount | % of Average
Net Assets |
Class A | $ 29,786 | .35* |
Class T | 13,240 | .73* |
Class B | 9,539 | .70* |
Class C | 5,813 | .53* |
Institutional Class | 634 | .21* |
| $ 59,012 | |
* Annualized
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the fund's accounting records. The fee is based on the level of average net assets for the month plus out-of-pocket expenses.
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $2,932 for the period.
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $3.5 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 fund has agreed to pay commitment fees on its pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Expense Reductions.
FMR agreed to reimburse the classes of the fund to the extent operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, are excluded from this reimbursement.
| Expense
Limitations | Reimbursement
from adviser |
| | |
Class A | 2.00% | $ 74,672 |
Class T | 2.25% | 22,837 |
Class B | 2.75% | 16,755 |
Class C | 2.75% | 11,562 |
Institutional Class | 1.75% | 2,214 |
| | $ 128,040 |
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services may include payments of expenses on behalf of the fund to support distribution of fund shares for Class A and Class T ("Distribution Expense Reduction") and to pay other fund expenses, such as transfer agent fees ("Other Expense Reduction") collectively referred to as "Directed Brokerage" in the accompanying table. Directed brokerage generally benefits all shareholders of each class by reducing fund expenses. Each of Class A and Class T shareholders' Other Expense Reduction benefit is reduced by the amount of any Distribution Expense Reduction.
| Directed Brokerage |
| Distribution
expense reduction | Other
expense reduction |
Fund Level | $ - | $ 2,080 |
Class A | - | - |
Class T | - | - |
| $ - | $ 2,080 |
Semiannual Report
7. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2003 | Year ended
October 31,
2002 | Six months ended
April 30,
2003 | Year ended
October 31,
2002 |
Class A | | | | |
Shares sold | 1,063,191 | 1,558,955 | $ 9,864,713 | $ 17,017,475 |
Shares redeemed | (954,587) | (1,691,949) | (9,257,168) | (18,896,118) |
Net increase (decrease) | 108,604 | (132,994) | $ 607,545 | $ (1,878,643) |
Class T | | | | |
Shares sold | 292,998 | 306,332 | $ 2,784,729 | $ 3,507,758 |
Shares redeemed | (402,527) | (175,919) | (3,921,139) | (1,903,003) |
Net increase (decrease) | (109,529) | 130,413 | $ (1,136,410) | $ 1,604,755 |
Class B | | | | |
Shares sold | 51,740 | 136,244 | $ 477,829 | $ 1,467,888 |
Shares redeemed | (57,574) | (121,792) | (529,542) | (1,276,878) |
Net increase (decrease) | (5,834) | 14,452 | $ (51,713) | $ 191,010 |
Class C | | | | |
Shares sold | 115,229 | 353,152 | $ 1,064,659 | $ 3,841,374 |
Shares redeemed | (123,839) | (263,600) | (1,140,731) | (2,864,649) |
Net increase (decrease) | (8,610) | 89,552 | $ (76,072) | $ 976,725 |
Institutional Class | | | | |
Shares sold | 146,011 | 574,658 | $ 1,452,598 | $ 6,068,713 |
Shares redeemed | (175,976) | (578,457) | (1,750,524) | (6,223,877) |
Net increase (decrease) | (29,965) | (3,799) | $ (297,926) | $ (155,164) |
Semiannual Report
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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 International
Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corp.
Boston, MA
Transfer and Shareholder
Servicing Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
Semiannual Report
Fidelity Advisor Aggressive Growth Fund |
Fidelity Advisor Asset Allocation Fund |
Fidelity Advisor Balanced Fund |
Fidelity Advisor Biotechnology Fund |
Fidelity Advisor California Municipal Income Fund |
Fidelity Advisor Consumer Industries Fund |
Fidelity Advisor Cyclical Industries Fund |
Fidelity Advisor Developing Communications Fund |
Fidelity Advisor Diversified International Fund |
Fidelity Advisor Dividend Growth Fund |
Fidelity Advisor Dynamic Capital Appreciation Fund |
Fidelity Advisor Electronics Fund |
Fidelity Advisor Emerging Asia Fund |
Fidelity Advisor Emerging Markets Income Fund |
Fidelity Advisor Equity Growth Fund |
Fidelity Advisor Equity Income Fund |
Fidelity Advisor Equity Value Fund |
Fidelity Advisor Europe Capital Appreciation Fund |
Fidelity Advisor Fifty Fund |
Fidelity Advisor Financial Services Fund |
Fidelity Advisor Floating Rate High Income Fund |
Fidelity Advisor Global Equity Fund |
Fidelity Advisor Government Investment Fund |
Fidelity Advisor Growth & Income Fund |
Fidelity Advisor Growth Opportunities |
Fidelity Advisor Health Care Fund |
Fidelity Advisor High Income Advantage Fund |
Fidelity Advisor High Income Fund |
Fidelity Advisor Inflation-Protected Bond Fund |
Fidelity Advisor Intermediate Bond Fund |
Fidelity Advisor International Capital Appreciation Fund |
Fidelity Advisor Investment Grade Bond Fund |
Fidelity Advisor Japan Fund |
Fidelity Advisor Korea Fund |
Fidelity Advisor Large Cap Fund |
Fidelity Advisor Latin America Fund |
Fidelity Advisor Leveraged Company Stock Fund |
Fidelity Advisor Mid Cap Fund |
Fidelity Advisor Mortgage Securities Fund |
Fidelity Advisor Municipal Income Fund |
Fidelity Advisor Natural Resources Fund |
Fidelity Advisor New York Municipal Income Fund |
Fidelity Advisor Overseas Fund |
Fidelity Advisor Real Estate Fund |
Fidelity Advisor Short Fixed-Income Fund |
Fidelity Advisor Small Cap Fund |
Fidelity Advisor Strategic Growth Fund |
Fidelity Advisor Strategic Income Fund |
Fidelity Advisor Tax Managed
Stock Fund |
Fidelity Advisor Technology Fund |
Fidelity Advisor Telecommunications & Utilities Growth Fund |
Fidelity Advisor Value Strategies Fund |
Prime Fund |
Tax-Exempt Fund |
Treasury Fund |
(Fidelity Investment logo)(registered trademark)
AEAI-USAN-0603
1.784874.100
Fidelity® Advisor
Global Equity
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2003
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
| | |
| | |
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.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.
Neither the fund nor Fidelity Distributors Corporation is a bank.
For more information on any Fidelity Advisor fund, including charges and expenses, contact your investment professional for a free prospectus. Read it carefully before you invest or send money.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
This shareholder update and report on the performance of your fund is among the first to be produced under the new Sarbanes-Oxley Public Company Accounting and Investor Protection Act of 2002. This act requires that public companies certify, under penalty of law, the financial information they report to shareholders. It was adopted by Congress in reaction to several incidents of corporate malfeasance that brought the integrity of management of some publicly traded companies into question.
After the act was signed into law, the Securities and Exchange Commission interpreted it as applying to mutual funds as well as public companies. Thus, every mutual fund now is required to certify that the financial information provided in annual and semiannual reports to shareholders fully and fairly presents its financial position.
There is little doubt that the intent of Congress and regulators in this matter is a noble one - to improve the accuracy and accountability of financial reporting to investors by corporate America. We in no way condone any of the activities that brought about these requirements, and we welcome any and every reasonable proposal to strengthen investor protection and information disclosure.
That said, we are proud that mutual funds have always provided full and fair disclosure. Governed by the Investment Company Act of 1940 - and monitored and regulated by federal and state agencies, industry oversight associations, and independent directors - mutual funds are among the most transparent of all financial products. For example, the prices of mutual fund shares are established and published every business day, and the majority of members of the Board of Trustees that oversees our funds are not affiliated with the business of Fidelity. The disclosure standards of mutual funds actually have become models for governance and transparency across corporate America.
We are, of course, complying in full with the letter of this new requirement and hope that any future efforts by Congress to reassure investors about the honesty of corporate America will focus on practical and substantive solutions of genuine value to shareholders.
This sort of careful consideration was evident as Congress deliberated President Bush's tax cut package this spring, then enacted legislation that contains a variety of benefits for American families, investors and businesses. Although the final bill did not completely eliminate the tax that individual investors pay when they receive dividends from companies, it still will benefit American investors, and we applaud it in the spirit of compromise that marked the debate in Congress.
At Fidelity, we are committed to acting at all times in accordance with the highest standards of integrity and in the best interests of our fund shareholders. We are proud of the amount of information we provide to those who invest in our funds and pleased to continue that level of communication with you in these reports.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Investment Changes
Top Five Stocks as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Microsoft Corp. (United States of America, Software) | 3.4 | 3.4 |
Johnson & Johnson (United States of America, Pharmaceuticals) | 2.9 | 2.9 |
Yahoo!, Inc. (United States of America, Internet Software & Services) | 2.0 | 2.2 |
Univision Communications, Inc. Class A (United States of America, Media) | 1.9 | 1.2 |
Viacom, Inc. Class B (non-vtg.) (United States of America, Media) | 1.8 | 0.8 |
| 12.0 | |
Top Five Market Sectors as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Consumer Discretionary | 18.8 | 15.6 |
Financials | 17.0 | 14.7 |
Health Care | 15.5 | 15.8 |
Information Technology | 14.3 | 16.3 |
Consumer Staples | 8.9 | 10.2 |
Top Five Countries as of April 30, 2003 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United States of America | 55.5 | 55.9 |
United Kingdom | 10.3 | 11.3 |
Japan | 8.1 | 9.7 |
France | 3.8 | 3.8 |
Spain | 2.7 | 1.9 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2003 | As of October 31, 2002 |
| Stocks and
Equity Futures 97.2% | | | Stocks and
Equity Futures 99.1% | |
| Short-Term
Investments and
Net Other Assets 2.8% | | | Short-Term
Investments and
Net Other Assets 0.9% | |
Semiannual Report
Investments April 30, 2003 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.5% |
| Shares | | Value (Note 1) |
Australia - 2.1% |
Alumina Ltd. | 1,200 | | $ 3,279 |
Amcor Ltd. | 2,800 | | 14,581 |
AMP Diversified Property Trust | 600 | | 1,113 |
Australia & New Zealand Banking Group Ltd. | 3,900 | | 45,579 |
Australian Gas Light Co. | 1,024 | | 7,335 |
Australian Stock Exchange Ltd. | 700 | | 5,045 |
BHP Billiton Ltd. | 9,785 | | 55,431 |
BHP Steel Ltd. | 2,457 | | 5,220 |
CFS Gandel Retail Trust | 6,900 | | 6,053 |
Coca-Cola Amatil Ltd. | 3,600 | | 12,836 |
Commonwealth Bank of Australia | 2,200 | | 37,526 |
CSR Ltd. | 2,900 | | 3,235 |
Fosters Group Ltd. | 3,700 | | 10,387 |
General Property Trust | 3,700 | | 6,956 |
Insurance Australia Group Ltd. | 2,074 | | 4,029 |
John Fairfax Holdings Ltd. | 2,800 | | 5,352 |
Leighton Holdings Ltd. | 1,400 | | 8,527 |
Lihir Gold Ltd. (a) | 2,700 | | 2,216 |
National Australia Bank Ltd. | 2,200 | | 44,805 |
Newcrest Mining Ltd. | 1,600 | | 6,567 |
News Corp. Ltd. | 2,463 | | 17,413 |
Origin Energy Ltd. | 2,000 | | 5,627 |
Publishing & Broadcasting Ltd. | 1,500 | | 8,300 |
Qantas Airways Ltd. | 2,900 | | 5,779 |
QBE Insurance Group Ltd. | 4,399 | | 23,542 |
Rinker Group Ltd. (a) | 2,900 | | 8,832 |
Rio Tinto Ltd. | 1,900 | | 37,838 |
Telstra Corp. Ltd. | 4,100 | | 10,817 |
Westfield Holdings Ltd. | 1,000 | | 9,149 |
Westfield Trust | 2,600 | | 5,588 |
Westpac Banking Corp. | 5,100 | | 50,847 |
Woolworths Ltd. | 2,700 | | 21,860 |
TOTAL AUSTRALIA | | 491,664 |
Austria - 0.1% |
Telekom Austria AG (a) | 3,400 | | 34,901 |
Belgium - 0.3% |
Agfa-Gevaert NV | 1,700 | | 33,837 |
Solvay SA | 450 | | 31,852 |
TOTAL BELGIUM | | 65,689 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Canada - 2.4% |
Abitibi-Consolidated, Inc. | 1,740 | | $ 12,199 |
Agnico-Eagle Mines Ltd. | 580 | | 5,826 |
Alcan, Inc. | 530 | | 15,528 |
Astral Media, Inc. Class A (non-vtg.) | 310 | | 5,212 |
ATI Technologies, Inc. (a) | 160 | | 1,009 |
Bank of Montreal, Quebec | 720 | | 20,141 |
Bank of Nova Scotia | 480 | | 18,681 |
BC Gas, Inc. | 380 | | 10,206 |
BCE, Inc. | 1,470 | | 29,072 |
Biovail Corp. (a) | 420 | | 15,332 |
Brascan Corp. Class A (ltd. vtg.) | 200 | | 4,513 |
Canadian Imperial Bank of Commerce | 350 | | 11,671 |
Canadian National Railway Co. | 310 | | 15,062 |
Celestica, Inc. (sub. vtg.) (a) | 250 | | 2,878 |
CHC Helicopter Corp. Class A (sub. vtg.) | 590 | | 10,680 |
Cinram International, Inc. | 250 | | 2,353 |
Cognos, Inc. (a) | 130 | | 3,537 |
CP Ships Ltd. | 390 | | 5,700 |
Domtar, Inc. | 460 | | 4,862 |
Enbridge, Inc. | 190 | | 5,785 |
EnCana Corp. | 884 | | 28,990 |
Gildan Activewear, Inc. Class A (sub. vtg.) (a) | 180 | | 4,966 |
Glamis Gold Ltd. (a) | 260 | | 2,887 |
Goldcorp, Inc. | 880 | | 9,184 |
Industrial Alliance Life Insurance Co. | 110 | | 2,866 |
Investors Group, Inc. | 160 | | 2,997 |
Jean Coutu Group, Inc. Class A | 490 | | 5,162 |
Kinross Gold Corp. (a) | 940 | | 5,803 |
Loblaw Companies Ltd. | 390 | | 15,235 |
Manitoba Telecom Services, Inc. | 240 | | 6,178 |
Manulife Financial Corp. | 410 | | 10,937 |
Masonite International Corp. (a) | 320 | | 5,458 |
Mega Bloks, Inc. (a)(c) | 380 | | 6,097 |
Methanex Corp. | 1,900 | | 18,092 |
Moore Corp. Ltd. (a) | 590 | | 6,717 |
National Bank of Canada | 900 | | 21,911 |
Newmont Mining Corp. of Canada Ltd. (exchangeable shares) | 354 | | 9,577 |
Nortel Networks Corp. (a) | 1,410 | | 3,638 |
Onex Corp. (sub. vtg.) | 320 | | 3,304 |
Petro-Canada | 500 | | 16,488 |
Potash Corp. of Saskatchewan | 130 | | 7,998 |
Power Financial Corp. | 260 | | 7,482 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Canada - continued |
Precision Drilling Corp. (a) | 150 | | $ 5,135 |
Rogers Communications, Inc. Class B (non-vtg.) (a) | 630 | | 8,262 |
Royal Bank of Canada | 1,340 | | 55,900 |
Saputo, Inc. | 130 | | 2,290 |
Shell Canada Ltd. Class A | 160 | | 5,456 |
Sobeys, Inc. | 350 | | 9,058 |
SouthernEra Resources Ltd. (a) | 840 | | 3,463 |
Sun Life Financial Services of Canada, Inc. | 1,063 | | 21,838 |
Suncor Energy, Inc. | 870 | | 14,317 |
Talisman Energy, Inc. | 320 | | 12,775 |
Teck Cominco Ltd. Class B (sub. vtg.) | 800 | | 5,726 |
TELUS Corp. (non-vtg.) | 430 | | 5,789 |
Toronto-Dominion Bank | 290 | | 6,866 |
Torstar Corp. Class B | 260 | | 4,654 |
TransCanada PipeLines Ltd. | 660 | | 10,543 |
TOTAL CANADA | | 574,286 |
Cayman Islands - 0.5% |
Noble Corp. (a) | 3,960 | | 122,562 |
Denmark - 0.7% |
Danske Bank AS | 2,630 | | 50,657 |
ISS AS | 2,128 | | 79,734 |
Novo Nordisk AS Series B | 1,200 | | 43,518 |
TOTAL DENMARK | | 173,909 |
Finland - 1.0% |
Fortum Oyj | 7,840 | | 56,370 |
Nokia Corp. | 9,210 | | 152,610 |
Sampo Oyj (A Shares) | 5,729 | | 41,640 |
TOTAL FINLAND | | 250,620 |
France - 3.8% |
Alcatel SA (RFD) | 4,200 | | 33,852 |
Aventis SA (France) | 2,193 | | 110,396 |
AXA SA | 8,300 | | 126,315 |
BNP Paribas SA | 1,792 | | 84,280 |
Cap Gemini SA | 1,900 | | 59,233 |
CNP Assurances | 600 | | 24,167 |
Essilor International SA | 1,280 | | 52,514 |
Pernod-Ricard | 425 | | 37,377 |
Television Francaise 1 SA | 1,170 | | 32,930 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
France - continued |
TotalFinaElf SA Series B | 1,725 | | $ 226,665 |
Vivendi Universal SA | 7,100 | | 115,913 |
TOTAL FRANCE | | 903,642 |
Germany - 1.1% |
Altana AG | 600 | | 29,453 |
Beiersdorf AG | 190 | | 23,668 |
Deutsche Boerse AG | 1,101 | | 51,708 |
Muenchener Rueckversicherungs-Gesellschaft AG (Reg.) | 953 | | 95,375 |
Schering AG | 1,530 | | 68,263 |
TOTAL GERMANY | | 268,467 |
Hong Kong - 0.6% |
Bank of East Asia Ltd. | 4,400 | | 8,152 |
Cafe de Coral Holdings Ltd. | 6,000 | | 3,731 |
Cheung Kong Holdings Ltd. | 2,000 | | 11,052 |
CLP Holdings Ltd. | 2,400 | | 9,816 |
CNOOC Ltd. | 3,500 | | 4,600 |
Esprit Holdings Ltd. | 2,000 | | 3,924 |
Guoco Group Ltd. | 783 | | 4,528 |
Hang Seng Bank Ltd. | 900 | | 8,914 |
Hong Kong & China Gas Co. Ltd. | 9,400 | | 11,088 |
Hutchison Whampoa Ltd. | 3,600 | | 20,033 |
Johnson Electric Holdings Ltd. | 10,500 | | 11,309 |
Li & Fung Ltd. | 8,000 | | 8,975 |
Sun Hung Kai Properties Ltd. | 2,000 | | 9,386 |
Swire Pacific Ltd. (A Shares) | 1,500 | | 5,943 |
Television Broadcasts Ltd. | 3,000 | | 9,174 |
Wharf Holdings Ltd. | 2,000 | | 3,500 |
TOTAL HONG KONG | | 134,125 |
Ireland - 0.7% |
Bank of Ireland | 7,938 | | 98,083 |
CRH PLC | 3,827 | | 58,884 |
TOTAL IRELAND | | 156,967 |
Italy - 1.2% |
Autostrade Spa | 5,840 | | 76,378 |
Banco Popolare di Verona e Novara | 6,590 | | 89,717 |
ENI Spa | 6,111 | | 87,384 |
Riunione Adriatica di Sicurta Spa (RAS) | 2,315 | | 33,466 |
TOTAL ITALY | | 286,945 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Japan - 8.1% |
Ajinomoto Co., Inc. | 1,000 | | $ 10,177 |
Aoyama Trading Co. Ltd. | 700 | | 9,444 |
Bank of Yokohama Ltd. | 6,000 | | 21,246 |
Bridgestone Corp. | 3,000 | | 34,139 |
Canon, Inc. | 3,000 | | 120,330 |
Central Glass Co. Ltd. | 2,000 | | 10,177 |
Citizen Watch Co. Ltd. | 3,000 | | 15,871 |
Credit Saison Co. Ltd. | 1,100 | | 20,770 |
Daikin Industries Ltd. | 1,000 | | 16,687 |
Daito Trust Construction Co. | 1,000 | | 19,135 |
Daiwa Securities Group, Inc. | 3,000 | | 11,834 |
Denki Kagaku Kogyo KK | 7,000 | | 15,602 |
Denso Corp. | 1,300 | | 18,588 |
Dowa Mining Co. Ltd. | 4,000 | | 13,289 |
East Japan Railway Co. | 6 | | 27,251 |
Fast Retailing Co. Ltd. | 800 | | 23,348 |
Fuji Photo Film Co. Ltd. | 2,000 | | 51,138 |
Funai Electric Co. Ltd. | 100 | | 10,093 |
Heiwa Corp. | 1,200 | | 18,087 |
Hino Motors Ltd. | 2,000 | | 9,555 |
Hitachi Chemical Co. Ltd. | 1,400 | | 12,694 |
Hoya Corp. | 600 | | 35,578 |
JAFCO Co. Ltd. | 300 | | 10,875 |
Japan Real Estate Investment Corp. | 2 | | 10,766 |
Japan Retail Fund Investment Corp. | 3 | | 14,610 |
JGC Corp. | 3,000 | | 21,195 |
JSR Corp. | 1,000 | | 10,463 |
Kao Corp. | 2,000 | | 36,587 |
KDDI Corp. | 11 | | 33,492 |
Keyence Corp. | 110 | | 17,736 |
Kobayashi Pharmaceutical Co. Ltd. | 300 | | 10,396 |
Konami Corp. | 1,400 | | 18,463 |
Konica Corp. | 3,000 | | 27,528 |
Kyocera Corp. | 800 | | 39,161 |
Matsushita Electric Industrial Co. Ltd. | 4,000 | | 31,760 |
Minolta Co. Ltd. (a) | 5,000 | | 27,756 |
Mitsubishi Heavy Industries Ltd. | 4,000 | | 8,915 |
Mitsubishi Securities Co. Ltd. | 3,000 | | 13,222 |
Mitsubishi Tokyo Finance Group, Inc. (MTFG) | 8 | | 28,160 |
Mitsui & Co. Ltd. | 8,000 | | 38,017 |
Mitsui O.S.K Lines Ltd. | 15,000 | | 39,362 |
Nichicon Corp. | 1,800 | | 18,410 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Japan - continued |
Nidec Corp. | 100 | | $ 5,290 |
Nikko Cordial Corp. | 7,000 | | 18,840 |
Nikon Corp. (a) | 1,000 | | 6,687 |
Nintendo Co. Ltd. | 100 | | 7,839 |
Nippon Sheet Glass Co. Ltd. | 7,000 | | 14,424 |
Nishimatsuya Chain Co. Ltd. | 300 | | 6,649 |
Nissan Motor Co. Ltd. | 11,100 | | 85,082 |
Nitto Denko Corp. | 1,100 | | 31,734 |
NOK Corp. | 3,000 | | 41,734 |
Nomura Holdings, Inc. | 6,000 | | 59,599 |
NTN Corp. | 3,000 | | 11,506 |
Office Building Fund of Japan, Inc. | 2 | | 10,799 |
ORIX Corp. | 300 | | 13,752 |
Ricoh Co. Ltd. | 2,000 | | 30,767 |
Rohm Co. Ltd. | 400 | | 41,347 |
Sanken Electric Co. Ltd. | 1,000 | | 8,747 |
Sankyo Co. Ltd. (Gunma) | 400 | | 8,226 |
Seven Eleven Japan Co. Ltd. | 1,000 | | 23,887 |
Shimachu Co. Ltd. | 1,100 | | 18,235 |
Shin-Etsu Chemical Co. Ltd. | 1,000 | | 30,027 |
SMC Corp. | 300 | | 22,659 |
Stanley Electric Co. Ltd. | 3,000 | | 37,849 |
Sumisho Lease Co. Ltd. | 400 | | 5,591 |
Sumitomo Electric Industries Ltd. | 4,000 | | 22,440 |
Sumitomo Mitsui Financial Group, Inc. | 8 | | 12,583 |
Takeda Chemical Industries Ltd. | 1,700 | | 62,484 |
Terumo Corp. | 2,100 | | 35,025 |
THK Co. Ltd. | 1,400 | | 12,953 |
Tohoku Electric Power Co., Inc. | 1,300 | | 20,764 |
Tokyo Electric Power Co. | 2,300 | | 46,814 |
Tokyo Electron Ltd. | 800 | | 30,077 |
Tosoh Corp. | 9,000 | | 20,363 |
Toyoda Gosei Co. Ltd. | 1,100 | | 19,660 |
Toyota Motor Corp. | 3,100 | | 70,184 |
UMC Japan (a) | 10 | | 7,906 |
Uni-Charm Corp. | 600 | | 23,971 |
Uny Co. Ltd. | 1,000 | | 8,486 |
Yakult Honsha Co. Ltd. | 1,000 | | 14,719 |
TOTAL JAPAN | | 1,931,606 |
Netherlands - 1.1% |
Euronext NV | 4,550 | | 100,739 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Netherlands - continued |
ING Groep NV (Certificaten Van Aandelen) | 6,510 | | $ 105,916 |
Koninklijke Philips Electronics NV | 2,721 | | 50,721 |
TOTAL NETHERLANDS | | 257,376 |
New Zealand - 0.1% |
Telecom Corp. of New Zealand Ltd. | 3,400 | | 9,137 |
The Warehouse Group Ltd. | 1,800 | | 5,655 |
TOTAL NEW ZEALAND | | 14,792 |
Norway - 0.5% |
DnB Holding ASA | 12,920 | | 61,674 |
Gjensidige NOR ASA | 800 | | 27,727 |
Statoil ASA | 4,800 | | 38,074 |
TOTAL NORWAY | | 127,475 |
Papua New Guinea - 0.0% |
Oil Search Ltd. | 15,400 | | 6,176 |
Singapore - 0.3% |
City Developments Ltd. | 1,000 | | 1,906 |
DBS Group Holdings Ltd. | 2,000 | | 9,814 |
Keppel Corp. Ltd. | 2,000 | | 5,031 |
Oversea-Chinese Banking Corp. Ltd. | 1,000 | | 5,330 |
Singapore Airlines Ltd. | 1,000 | | 5,330 |
Singapore Exchange Ltd. | 6,000 | | 4,129 |
Singapore Press Holdings Ltd. | 1,400 | | 13,029 |
United Overseas Bank Ltd. | 3,096 | | 18,160 |
TOTAL SINGAPORE | | 62,729 |
Spain - 2.7% |
Acerinox SA (Reg.) | 930 | | 34,723 |
Altadis SA (Spain) | 8,300 | | 214,392 |
Banco Popular Espanol SA (Reg.) | 1,230 | | 59,747 |
Banco Santander Central Hispano SA | 7,390 | | 58,175 |
Corporacion Mapfre SA (Reg.) | 3,100 | | 29,118 |
Fomento Construcciones y Contratas SA (FOCSA) | 1,370 | | 35,143 |
Grupo Dragados SA | 3,010 | | 57,622 |
Telefonica SA | 13,974 | | 154,851 |
Telefonica SA | 279 | | 3,092 |
TOTAL SPAIN | | 646,863 |
Sweden - 1.0% |
Hennes & Mauritz AB (H&M) (B Shares) | 3,400 | | 75,884 |
Securitas AB (B Shares) | 5,300 | | 62,394 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Sweden - continued |
Svenska Handelsbanken AB (A Shares) | 3,978 | | $ 63,417 |
Swedish Match Co. | 6,100 | | 45,257 |
TOTAL SWEDEN | | 246,952 |
Switzerland - 2.5% |
Adecco SA | 734 | | 28,181 |
Credit Suisse Group (Reg.) | 1,420 | | 33,969 |
Givaudan AG | 77 | | 29,847 |
Nestle SA (Reg.) | 1,132 | | 231,097 |
Novartis AG (Reg.) | 3,436 | | 135,725 |
Swiss Reinsurance Co. (Reg.) | 748 | | 48,931 |
Swisscom AG (Reg.) | 134 | | 41,504 |
Syngenta AG (Switzerland) | 800 | | 41,347 |
TOTAL SWITZERLAND | | 590,601 |
United Kingdom - 10.3% |
3i Group PLC | 16,520 | | 122,932 |
Amersham PLC | 2,400 | | 17,274 |
Anglo American PLC (United Kingdom) | 2,840 | | 40,722 |
AstraZeneca PLC (Sweden) | 2,312 | | 91,861 |
Barclays PLC | 19,870 | | 137,447 |
BG Group PLC | 21,490 | | 86,062 |
BP PLC | 24,800 | | 159,299 |
British American Tobacco PLC | 1,900 | | 18,243 |
British Sky Broadcasting Group PLC (BSkyB) (a) | 8,700 | | 90,288 |
Compass Group PLC | 12,080 | | 55,675 |
Gallaher Group PLC | 2,000 | | 18,964 |
GlaxoSmithKline PLC | 11,031 | | 223,488 |
HBOS PLC | 6,600 | | 77,419 |
HSBC Holdings PLC: | | | |
(Hong Kong) (Reg.) | 3,844 | | 42,046 |
(United Kingdom) (Reg.) | 15,240 | | 166,695 |
Kingfisher PLC | 7,100 | | 27,780 |
Man Group PLC | 2,550 | | 43,052 |
National Grid Transco PLC | 5,976 | | 39,306 |
Prudential PLC | 7,190 | | 44,069 |
Reed Elsevier PLC | 8,680 | | 69,314 |
Shell Transport & Trading Co. PLC (Reg.) | 39,590 | | 238,134 |
Standard Chartered PLC | 3,400 | | 37,978 |
Unilever PLC | 20,880 | | 204,989 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
United Kingdom - continued |
United Business Media PLC | 8,494 | | $ 33,982 |
Vodafone Group PLC | 193,564 | | 382,483 |
TOTAL UNITED KINGDOM | | 2,469,502 |
United States of America - 54.4% |
Abbott Laboratories | 3,290 | | 133,673 |
Abercrombie & Fitch Co. Class A (a) | 940 | | 30,907 |
AFLAC, Inc. | 930 | | 30,420 |
Agere Systems, Inc.: | | | |
Class A (a) | 260 | | 465 |
Class B (a) | 6,397 | | 10,939 |
Albany International Corp. Class A | 2,280 | | 54,127 |
Allergan, Inc. | 2,070 | | 145,418 |
Allstate Corp. | 2,090 | | 78,981 |
Altria Group, Inc. | 1,870 | | 57,521 |
American International Group, Inc. | 1,420 | | 82,289 |
AmeriCredit Corp. (a) | 8,290 | | 56,289 |
AmerisourceBergen Corp. | 1,110 | | 64,214 |
Amphenol Corp. Class A (a) | 660 | | 29,231 |
Analog Devices, Inc. (a) | 1,000 | | 33,120 |
AOL Time Warner, Inc. (a) | 26,320 | | 360,058 |
Aramark Corp. Class B (a) | 1,910 | | 43,854 |
AT&T Corp. | 2,268 | | 38,669 |
Avon Products, Inc. | 1,590 | | 92,490 |
Baker Hughes, Inc. | 1,800 | | 50,400 |
Bank of America Corp. | 1,280 | | 94,784 |
Bank of Hawaii Corp. | 1,500 | | 49,440 |
BEA Systems, Inc. (a) | 290 | | 3,106 |
Becton, Dickinson & Co. | 2,100 | | 74,340 |
Benchmark Electronics, Inc. (a) | 1,450 | | 37,628 |
BJ Services Co. (a) | 1,100 | | 40,161 |
Black & Decker Corp. | 1,050 | | 43,313 |
Boston Scientific Corp. (a) | 730 | | 31,427 |
Bristol-Myers Squibb Co. | 2,400 | | 61,296 |
Burlington Resources, Inc. | 690 | | 31,954 |
Cardinal Health, Inc. | 1,220 | | 67,442 |
Cendant Corp. (a) | 4,020 | | 57,406 |
Centex Corp. | 1,040 | | 68,661 |
Charles Schwab Corp. | 4,210 | | 36,332 |
ChevronTexaco Corp. | 1,510 | | 94,843 |
Clear Channel Communications, Inc. (a) | 4,054 | | 158,552 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
United States of America - continued |
Comcast Corp.: | | | |
Class A (a) | 3,668 | | $ 117,046 |
Class A (special) (a) | 3,050 | | 91,683 |
Compuware Corp. (a) | 8,930 | | 39,203 |
ConocoPhillips | 1,860 | | 93,558 |
Danaher Corp. | 2,140 | | 147,617 |
Dean Foods Co. (a) | 4,000 | | 174,120 |
Dell Computer Corp. (a) | 5,100 | | 147,441 |
Dow Chemical Co. | 2,170 | | 70,829 |
EMC Corp. (a) | 13,220 | | 120,170 |
ENSCO International, Inc. | 2,170 | | 55,118 |
Fairchild Semiconductor International, Inc. Class A (a) | 1,490 | | 17,686 |
Fannie Mae | 2,280 | | 165,049 |
FedEx Corp. | 730 | | 43,712 |
FirstEnergy Corp. | 890 | | 30,020 |
FleetBoston Financial Corp. | 1,940 | | 51,449 |
Fleetwood Enterprises, Inc. (a) | 2,630 | | 13,255 |
Forest Laboratories, Inc. (a) | 620 | | 32,066 |
Freddie Mac | 4,320 | | 250,128 |
Freeport-McMoRan Copper & Gold, Inc. Class B | 4,530 | | 78,414 |
Furniture Brands International, Inc. (a) | 2,880 | | 68,400 |
Gap, Inc. | 3,850 | | 64,026 |
Gillette Co. | 3,830 | | 116,624 |
HCA, Inc. | 810 | | 26,001 |
Herman Miller, Inc. | 1,200 | | 20,988 |
Home Depot, Inc. | 890 | | 25,036 |
Hudson Highland Group, Inc. (a) | 207 | | 3,070 |
Illinois Tool Works, Inc. | 1,100 | | 70,378 |
Integrated Silicon Solution, Inc. (a) | 970 | | 3,153 |
Intel Corp. | 12,850 | | 236,440 |
Intersil Corp. Class A (a) | 640 | | 11,840 |
J.P. Morgan Chase & Co. | 3,280 | | 96,268 |
Jabil Circuit, Inc. (a) | 3,280 | | 61,336 |
Johnson & Johnson | 12,170 | | 685,901 |
KB Home | 220 | | 10,839 |
KLA-Tencor Corp. (a) | 4,010 | | 164,410 |
Lattice Semiconductor Corp. (a) | 960 | | 8,333 |
Lennar Corp. | 6,980 | | 378,595 |
Lennar Corp. Class B | 698 | | 37,378 |
Liberty Media Corp. Class A (a) | 38,987 | | 428,857 |
Lowe's Companies, Inc. | 2,430 | | 106,653 |
LSI Logic Corp. (a) | 2,750 | | 14,740 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
United States of America - continued |
Lucent Technologies, Inc. (a) | 24,180 | | $ 43,524 |
Lyondell Chemical Co. | 3,780 | | 54,999 |
Manhattan Associates, Inc. (a) | 3,660 | | 88,535 |
Manpower, Inc. | 6,400 | | 210,432 |
Martin Marietta Materials, Inc. | 1,280 | | 37,850 |
Masco Corp. | 3,860 | | 81,330 |
Maytag Corp. | 960 | | 20,006 |
McKesson Corp. | 2,960 | | 82,110 |
Medtronic, Inc. | 4,220 | | 201,463 |
Merrill Lynch & Co., Inc. | 3,510 | | 144,086 |
MetLife, Inc. | 1,160 | | 33,327 |
Mettler-Toledo International, Inc. (a) | 1,590 | | 56,445 |
Micron Technology, Inc. (a) | 7,260 | | 61,710 |
Microsoft Corp. | 31,360 | | 801,864 |
Millennium Chemicals, Inc. | 500 | | 6,955 |
Mohawk Industries, Inc. (a) | 1,106 | | 61,350 |
Morgan Stanley | 2,110 | | 94,423 |
Motorola, Inc. | 15,970 | | 126,323 |
National Semiconductor Corp. (a) | 720 | | 13,486 |
National-Oilwell, Inc. (a) | 2,070 | | 43,449 |
Northrop Grumman Corp. | 280 | | 24,626 |
Northwest Airlines Corp. Class A (a) | 2,305 | | 18,970 |
Parker Hannifin Corp. | 560 | | 22,781 |
PepsiCo, Inc. | 1,990 | | 86,127 |
Performance Food Group Co. (a) | 1,460 | | 51,217 |
Perrigo Co. | 2,480 | | 38,093 |
Pfizer, Inc. | 10,522 | | 323,552 |
PolyOne Corp. | 2,710 | | 12,520 |
Progressive Corp. | 410 | | 27,880 |
Pulte Homes, Inc. | 1,660 | | 96,263 |
RealNetworks, Inc. (a) | 1,490 | | 7,644 |
Resmed, Inc. unit (a) | 765 | | 2,761 |
Scientific-Atlanta, Inc. | 7,060 | | 114,725 |
Semtech Corp. (a) | 1,470 | | 23,373 |
SICOR, Inc. (a) | 230 | | 4,124 |
St. Jude Medical, Inc. (a) | 5,860 | | 307,416 |
Stryker Corp. | 1,380 | | 92,474 |
Synovus Financial Corp. | 1,460 | | 28,426 |
Synthes-Stratec, Inc. | 63 | | 39,770 |
Sysco Corp. | 1,810 | | 52,001 |
Tenet Healthcare Corp. (a) | 2,495 | | 37,026 |
Texas Instruments, Inc. | 3,220 | | 59,538 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
United States of America - continued |
The Coca-Cola Co. | 8,530 | | $ 344,612 |
TMP Worldwide, Inc. (a) | 2,770 | | 46,453 |
Toys 'R' Us, Inc. (a) | 3,280 | | 33,620 |
Transocean, Inc. | 1,400 | | 26,670 |
Tyson Foods, Inc. Class A | 4,110 | | 39,579 |
Union Pacific Corp. | 550 | | 32,736 |
UnitedHealth Group, Inc. | 630 | | 58,042 |
Univision Communications, Inc. Class A (a) | 14,970 | | 453,292 |
Viacom, Inc. Class B (non-vtg.) (a) | 9,890 | | 429,325 |
Wachovia Corp. | 1,380 | | 52,730 |
Wal-Mart Stores, Inc. | 2,460 | | 138,547 |
Weatherford International Ltd. (a) | 3,750 | | 150,863 |
Whole Foods Market, Inc. (a) | 310 | | 18,402 |
Wyeth | 1,370 | | 59,636 |
Yahoo!, Inc. (a) | 18,870 | | 467,599 |
Zimmer Holdings, Inc. (a) | 4,380 | | 205,422 |
TOTAL UNITED STATES OF AMERICA | | 13,014,082 |
TOTAL COMMON STOCKS (Cost $23,604,812) | 22,831,931 |
Nonconvertible Preferred Stocks - 0.9% |
| | | |
Australia - 0.1% |
News Corp. Ltd. (ltd. vtg.) | 2,812 | | 16,635 |
Germany - 0.4% |
ProSiebenSat.1 Media AG | 3,150 | | 17,929 |
Wella AG | 1,100 | | 82,411 |
TOTAL GERMANY | | 100,340 |
Italy - 0.4% |
Telecom Italia Spa Risp (non-vtg.) | 20,080 | | 98,616 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $297,163) | 215,591 |
Government Obligations - 0.3% |
| Principal
Amount | | |
United States of America - 0.3% |
U.S. Treasury Bills, yield at date of purchase 1.1% 7/3/03 (d)
(Cost $74,853) | | $ 75,000 | | 74,854 |
Money Market Funds - 3.7% |
| Shares | | Value (Note 1) |
Fidelity Cash Central Fund, 1.29% (b)
(Cost $878,028) | 878,028 | | $ 878,028 |
TOTAL INVESTMENT PORTFOLIO - 100.4% (Cost $24,854,856) | | 24,000,404 |
NET OTHER ASSETS - (0.4)% | | (95,358) |
NET ASSETS - 100% | $ 23,905,046 |
Futures Contracts |
| Expiration
Date | | Underlying
Face Amount
at Value | | Unrealized
Gain/(Loss) |
Purchased |
Equity Index Contracts |
4 S&P 500 E-Mini Index Contracts | June 2003 | | $ 183,220 | | $ (4) |
|
The face value of futures purchased as a percentage of net assets - 0.8% |
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 $6,097 or 0.0% of net assets. |
(d) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $24,951. |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $7,046,927 and $7,612,500. |
The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $321 for the period. |
Income Tax Information |
At October 31, 2002, the fund had a capital loss carryforward of approximately $5,143,000 of which $301,000, $2,322,000 and $2,520,000 will expire on October 31, 2008, 2009 and 2010, respectively. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| April 30, 2003 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $24,854,856) - See accompanying schedule | | $ 24,000,404 |
Receivable for investments sold | | 116,490 |
Receivable for fund shares sold | | 63,041 |
Dividends receivable | | 69,289 |
Interest receivable | | 650 |
Receivable from investment adviser for expense reductions | | 19,643 |
Total assets | | 24,269,517 |
| | |
Liabilities | | |
Payable for investments purchased | $ 270,743 | |
Payable for fund shares redeemed | 23,199 | |
Accrued management fee | 14,155 | |
Distribution fees payable | 11,538 | |
Other payables and accrued expenses | 44,836 | |
Total liabilities | | 364,471 |
| | |
Net Assets | | $ 23,905,046 |
Net Assets consist of: | | |
Paid in capital | | $ 30,824,566 |
Accumulated net investment loss | | (60,802) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (6,006,574) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (852,144) |
Net Assets | | $ 23,905,046 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| April 30, 2003 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share
($3,634,121 ÷ 406,500 shares) | | $ 8.94 |
| | |
Maximum offering price per share (100/94.25 of $8.94) | | $ 9.49 |
Class T:
Net Asset Value and redemption price per share ($13,432,503 ÷ 1,517,445 shares) | | $ 8.85 |
| | |
Maximum offering price per share (100/96.50 of $8.85) | | $ 9.17 |
Class B:
Net Asset Value and offering price per share ($3,932,699 ÷ 454,019 shares) A | | $ 8.66 |
| | |
Class C:
Net Asset Value and offering price per share ($2,758,700 ÷ 318,069 shares) A | | $ 8.67 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($147,023 ÷ 16,259 shares) | | $ 9.04 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended April 30, 2003 (Unaudited) | Six months ended April 30, 2003 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 191,586 |
Interest | | 6,447 |
| | 198,033 |
Less foreign taxes withheld | | (15,708) |
Total income | | 182,325 |
| | |
Expenses | | |
Management fee | $ 86,197 | |
Transfer agent fees | 63,270 | |
Distribution fees | 70,610 | |
Accounting fees and expenses | 30,091 | |
Non-interested trustees' compensation | 48 | |
Custodian fees and expenses | 31,949 | |
Registration fees | 47,953 | |
Audit | 19,010 | |
Legal | 793 | |
Miscellaneous | 64 | |
Total expenses before reductions | 349,985 | |
Expense reductions | (106,858) | 243,127 |
Net investment income (loss) | | (60,802) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities | (747,562) | |
Foreign currency transactions | 624 | |
Futures contracts | 15,548 | |
Total net realized gain (loss) | | (731,390) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 1,603,967 | |
Assets and liabilities in foreign currencies | 1,029 | |
Futures contracts | (9,971) | |
Total change in net unrealized appreciation (depreciation) | | 1,595,025 |
Net gain (loss) | | 863,635 |
Net increase (decrease) in net assets resulting from operations | | $ 802,833 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended
April 30, 2003
(Unaudited) | Year ended
October 31,
2002 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (60,802) | $ (215,199) |
Net realized gain (loss) | (731,390) | (2,446,716) |
Change in net unrealized appreciation (depreciation) | 1,595,025 | (634,363) |
Net increase (decrease) in net assets resulting
from operations | 802,833 | (3,296,278) |
Share transactions - net increase (decrease) | (359,950) | 6,075,998 |
Total increase (decrease) in net assets | 442,883 | 2,779,720 |
| | |
Net Assets | | |
Beginning of period | 23,462,163 | 20,682,443 |
End of period (including accumulated net investment loss of $60,802 and undistributed net investment income of $0, respectively.) | $ 23,905,046 | $ 23,462,163 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 H |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.62 | $ 9.76 | $ 12.62 | $ 11.79 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | (.01) | (.05) | (.02) G | (.04) F | (.04) |
Net realized and unrealized gain (loss) | .33 | (1.09) | (2.84) | 1.13 | 1.83 |
Total from investment operations | .32 | (1.14) | (2.86) | 1.09 | 1.79 |
Distributions from net realized gain | - | - | - | (.20) | - |
Distributions in excess of net realized gain | - | - | - | (.06) | - |
Total distributions | - | - | - | (.26) | - |
Net asset value, end of period | $ 8.94 | $ 8.62 | $ 9.76 | $ 12.62 | $ 11.79 |
Total Return B,C,D | 3.71% | (11.68)% | (22.66)% | 9.28% | 17.90% |
Ratios to Average Net Assets I | | | | |
Expenses before expense reductions | 2.50% A | 2.38% | 2.40% | 2.32% | 4.39% A |
Expenses net of voluntary waivers, if any | 1.77% A | 1.94% | 2.00% | 2.00% | 2.00% A |
Expenses net of all reductions | 1.74% A | 1.92% | 1.96% | 1.99% | 1.99% A |
Net investment income (loss) | (.18)% A | (.57)% | (.17)% | (.33)% | (.47)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 3,634 | $ 3,343 | $ 3,516 | $ 2,868 | $ 1,853 |
Portfolio turnover rate | 62% A | 76% | 141% | 106% | 69% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Investment income per share reflects a special dividend which amounted to $.03 per share. G Investment income per share reflects a special dividend which amounted to $.04 per share. H For the period December 17, 1998 (commencement of operations) to October 31, 1999. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 H |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.54 | $ 9.70 | $ 12.60 | $ 11.77 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | (.02) | (.08) | (.05) G | (.08) F | (.07) |
Net realized and unrealized gain (loss) | .33 | (1.08) | (2.85) | 1.15 | 1.84 |
Total from investment operations | .31 | (1.16) | (2.90) | 1.07 | 1.77 |
Distributions from net realized gain | - | - | - | (.18) | - |
Distributions in excess of net realized gain | - | - | - | (.06) | - |
Total distributions | - | - | - | (.24) | - |
Net asset value, end of period | $ 8.85 | $ 8.54 | $ 9.70 | $ 12.60 | $ 11.77 |
Total Return B,C,D | 3.63% | (11.96)% | (23.02)% | 9.12% | 17.70% |
Ratios to Average Net Assets I | | | | |
Expenses before expense reductions | 2.92% A | 2.85% | 2.88% | 2.70% | 4.70% A |
Expenses net of voluntary waivers, if any | 2.02% A | 2.19% | 2.25% | 2.25% | 2.25% A |
Expenses net of all reductions | 1.99% A | 2.16% | 2.21% | 2.24% | 2.24% A |
Net investment income (loss) | (.43)% A | (.81)% | (.42)% | (.58)% | (.72)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 13,433 | $ 12,496 | $ 7,642 | $ 8,019 | $ 3,204 |
Portfolio turnover rate | 62% A | 76% | 141% | 106% | 69% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Investment income per share reflects a special dividend which amounted to $.03 per share. G Investment income per share reflects a special dividend which amounted to $.04 per share. H For the period December 17, 1998 (commencement of operations) to October 31, 1999. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 H |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.38 | $ 9.56 | $ 12.48 | $ 11.71 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | (.04) | (.12) | (.10) G | (.14) F | (.12) |
Net realized and unrealized gain (loss) | .32 | (1.06) | (2.82) | 1.14 | 1.83 |
Total from investment operations | .28 | (1.18) | (2.92) | 1.00 | 1.71 |
Distributions from net realized gain | - | - | - | (.17) | - |
Distributions in excess of net realized gain | - | - | - | (.06) | - |
Total distributions | - | - | - | (.23) | - |
Net asset value, end of period | $ 8.66 | $ 8.38 | $ 9.56 | $ 12.48 | $ 11.71 |
Total Return B,C,D | 3.34% | (12.34)% | (23.40)% | 8.56% | 17.10% |
Ratios to Average Net Assets I | | | | |
Expenses before expense reductions | 3.52% A | 3.36% | 3.30% | 3.24% | 5.19% A |
Expenses net of voluntary waivers, if any | 2.50% A | 2.69% | 2.75% | 2.75% | 2.75% A |
Expenses net of all reductions | 2.47% A | 2.66% | 2.71% | 2.74% | 2.74% A |
Net investment income (loss) | (.92)% A | (1.31)% | (.92)% | (1.08)% | (1.22)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 3,933 | $ 3,848 | $ 4,865 | $ 5,187 | $ 2,268 |
Portfolio turnover rate | 62% A | 76% | 141% | 106% | 69% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Investment income per share reflects a special dividend which amounted to $.03 per share.
G Investment income per share reflects a special dividend which amounted to $.04 per share. H For the period December 17, 1998 (commencement of operations) to October 31, 1999. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 H |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.39 | $ 9.58 | $ 12.49 | $ 11.71 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | (.04) | (.12) | (.10) G | (.14) F | (.12) |
Net realized and unrealized gain (loss) | .32 | (1.07) | (2.81) | 1.15 | 1.83 |
Total from investment operations | .28 | (1.19) | (2.91) | 1.01 | 1.71 |
Distributions from net realized gain | - | - | - | (.17) | - |
Distributions in excess of net realized gain | - | - | - | (.06) | - |
Total distributions | - | - | - | (.23) | - |
Net asset value, end of period | $ 8.67 | $ 8.39 | $ 9.58 | $ 12.49 | $ 11.71 |
Total Return B,C,D | 3.34% | (12.42)% | (23.30)% | 8.65% | 17.10% |
Ratios to Average Net Assets I | | | | |
Expenses before expense reductions | 3.34% A | 3.18% | 3.16% | 3.13% | 5.16% A |
Expenses net of voluntary waivers, if any | 2.50% A | 2.69% | 2.75% | 2.75% | 2.75% A |
Expenses net of all reductions | 2.47% A | 2.66% | 2.71% | 2.74% | 2.74% A |
Net investment income (loss) | (.92)% A | (1.31)% | (.92)% | (1.08)% | (1.22)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 2,759 | $ 2,967 | $ 3,750 | $ 5,146 | $ 2,649 |
Portfolio turnover rate | 62% A | 76% | 141% | 106% | 69% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Investment income per share reflects a special dividend which amounted to $.03 per share.
G Investment income per share reflects a special dividend which amounted to $.04 per share. H For the period December 17, 1998 (commencement of operations) to October 31, 1999. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 G |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.68 | $ 9.81 | $ 12.68 | $ 11.81 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) D | - I | (.03) | .01 F | (.01) E | (.02) |
Net realized and unrealized gain (loss) | .36 | (1.10) | (2.88) | 1.16 | 1.83 |
Total from investment operations | .36 | (1.13) | (2.87) | 1.15 | 1.81 |
Distributions from net realized gain | - | - | - | (.21) | - |
Distributions in excess of net realized gain | - | - | - | (.07) | - |
Total distributions | - | - | - | (.28) | - |
Net asset value, end of period | $ 9.04 | $ 8.68 | $ 9.81 | $ 12.68 | $ 11.81 |
Total Return B,C | 4.15% | (11.52)% | (22.63)% | 9.79% | 18.10% |
Ratios to Average Net Assets H | | | | | |
Expenses before expense reductions | 2.10% A | 1.95% | 2.02% | 2.06% | 4.10% A |
Expenses net of voluntary waivers, if any | 1.50% A | 1.70% | 1.75% | 1.75% | 1.75% A |
Expenses net of all reductions | 1.47% A | 1.67% | 1.71% | 1.74% | 1.74% A |
Net investment income (loss) | .08% A | (.32)% | .08% | (.08)% | (.22)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 147 | $ 808 | $ 909 | $ 1,256 | $ 1,182 |
Portfolio turnover rate | 62% A | 76% | 141% | 106% | 69% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Investment income per share reflects a special dividend which amounted to $.03 per share. F Investment income per share reflects a special dividend which amounted to $.04 per share. G For the period December 17, 1998 (commencement of operations) to October 31, 1999. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per-share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2003 (Unaudited)
1. Significant Accounting Policies.
Fidelity Advisor Global Equity Fund (the fund) is a fund of Fidelity Advisor Series VIII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
The fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
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 fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. If an event that is expected to materially affect the value of a security occurs after the close of an exchange or market on which that security trades, but prior to the NAV calculation, then that security will be fair valued taking the event into account. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
1. Significant Accounting Policies - continued
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. 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 fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, which includes amortization of premium and accretion of discount on debt securities, as required, 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.
Income Tax Information and Distributions to Shareholders. Each year the fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. Foreign taxes are provided for based on each fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Income dividends and capital gain distributions are declared separately for each class. 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. Capital accounts within the financial statements are adjusted for permanent and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due to futures transactions, foreign currency transactions, passive foreign investment companies (PFIC), prior period premium and discount on debt
Semiannual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
securities, market discount, net operating losses, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investments including unrealized appreciation (depreciation) as of period end was as follows:
Unrealized appreciation | $ 2,003,349 | | |
Unrealized depreciation | (2,987,153) | |
Net unrealized appreciation (depreciation) | $ (983,804) | |
Cost for federal income tax purposes | $ 24,984,208 | |
2. Operating Policies.
Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. The custodian bank receives the collateral, which is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
Futures Contracts. The fund may use futures contracts to manage its exposure to the stock market. Buying futures tends to increase the fund's exposure to the underlying instrument, while selling futures tends to decrease the fund's exposure to the underlying instrument or hedge other fund investments. The underlying face amount at value of any open futures contracts at period end is shown in the Schedule of Investments under the caption "Futures Contracts." This amount reflects each contract's exposure to the underlying instrument at period end. Losses may arise from changes in the value of the underlying instruments or if the counter-parties do not perform under the contracts' terms. Gains (losses) are realized upon the expiration or closing of the futures contracts. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.
Restricted Securities. The fund may 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
2. Operating Policies - continued
Restricted Securities - continued
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 captions "Legend" and/or "Other Information" at the end of the fund's Schedule of Investments.
3. Purchases and Sales of Investments.
Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee.
The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the fund's average net assets and a group fee rate that averaged .28% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .73% of the fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares, except for Institutional Class. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. Class A and Class T Plans also authorize the use of brokerage commissions to pay distribution expenses. In addition, FDC may pay financial intermediaries for selling shares of the fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, the total amounts paid to and retained by FDC and the amount of distribution expenses paid with brokerage commissions were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC | Paid with
Commissions |
Class A | .02% | .25% | $ 4,559 | $ 426 | $ 308 |
Class T | .27% | .25% | 33,146 | 226 | 1,160 |
Class B | .75% | .25% | 18,903 | 14,210 | - |
Class C | .75% | .25% | 14,002 | 2,044 | - |
| | | $ 70,610 | $ 16,906 | $ 1,468 |
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares of the fund. FDC receives the proceeds of contingent deferred sales charge (CDSC) levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, and .25% for certain purchases of Class A and Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC | |
Class A | $ 1,675 | |
Class T | 1,593 | |
Class B* | 6,202 | |
Class C* | 848 | |
| $ 10,318 | |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the
sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent (collectively referred to as the transfer agent) for each class of the fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the fund. FIIOC pays for typesetting, printing and mailing of all shareholder reports, except proxy statements. For the period, the following amounts were paid to FIIOC:
| Amount | % of
Average
Net Assets |
Class A | $ 6,679 | .39* |
Class T | 35,968 | .56* |
Class B | 12,799 | .68* |
Class C | 6,929 | .49* |
Institutional Class | 895 | .26* |
| $ 63,270 | |
* Annualized
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the fund's accounting records. The fee is based on the level of average net assets for the month plus out-of-pocket expenses.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Fees and Other Transactions with Affiliates - continued
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $6,091 for the period.
Brokerage Commissions. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms are shown under the caption "Other Information" at the end of the fund's Schedule of Investments.
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $3.5 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 fund has agreed to pay commitment fees on its pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.
Semiannual Report
6. Expense Reductions.
FMR agreed to reimburse the classes of the fund to the extent operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, are excluded from this reimbursement.
| Expense
Limitations | Reimbursement
from adviser |
| | |
Class A | 1.75% | $ 12,518 |
Class T | 2.00% | 57,930 |
Class B | 2.50% | 19,170 |
Class C | 2.50% | 11,674 |
Institutional Class | 1.50% | 2,047 |
| | $ 103,339 |
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services may include payments of expenses on behalf of the fund to support distribution of fund shares for Class A and Class T ("Distribution Expense Reduction") and to pay other fund expenses, such as transfer agent fees ("Other Expense Reduction") collectively referred to as "Directed Brokerage" in the accompanying table. Directed brokerage generally benefits all shareholders of each class by reducing fund expenses. Each of Class A and Class T shareholders' Other Expense Reduction benefit is reduced by the amount of any Distribution Expense Reduction. All of the applicable expense reductions are noted in the table below.
| Directed
Brokerage |
| Distribution
expense
reduction | Other
expense
reduction |
Fund Level | $ - | $ 2,051 |
Class A | 308 | - |
Class T | 1,160 | - |
| $ 1,468 | $ 2,051 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Other Information.
At the end of the period, two unaffiliated shareholders were the owners of record of 26% of the total outstanding shares of the fund.
8. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2003 | Year ended
October 31,
2002 | Six months ended
April 30,
2003 | Year ended
October 31,
2002 |
Class A | | | | |
Shares sold | 57,162 | 120,119 | $ 486,628 | $ 1,181,117 |
Shares redeemed | (38,637) | (92,414) | (331,407) | (899,451) |
Net increase (decrease) | 18,525 | 27,705 | $ 155,221 | $ 281,666 |
Class T | | | | |
Shares sold | 329,004 | 1,004,408 | $ 2,801,019 | $ 9,714,971 |
Shares redeemed | (274,398) | (329,227) | (2,325,497) | (3,121,953) |
Net increase (decrease) | 54,606 | 675,181 | $ 475,522 | $ 6,593,018 |
Class B | | | | |
Shares sold | 40,922 | 109,175 | $ 339,707 | $ 1,054,797 |
Shares redeemed | (46,096) | (158,673) | (382,036) | (1,521,443) |
Net increase (decrease) | (5,174) | (49,498) | $ (42,329) | $ (466,646) |
Class C | | | | |
Shares sold | 21,063 | 97,361 | $ 175,544 | $ 951,823 |
Shares redeemed | (56,606) | (135,352) | (473,280) | (1,300,309) |
Net increase (decrease) | (35,543) | (37,991) | $ (297,736) | $ (348,486) |
Institutional Class | | | | |
Shares sold | 27,787 | 18,329 | $ 244,307 | $ 181,469 |
Shares redeemed | (104,586) | (17,921) | (894,935) | (165,023) |
Net increase (decrease) | (76,799) | 408 | $ (650,628) | $ 16,446 |
Semiannual Report
Semiannual Report
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 International
Investment Advisors
Fidelity International Investments Advisors (U.K.) Limited
Fidelity Investments Japan Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
Semiannual Report
Fidelity Advisor Aggressive Growth Fund |
Fidelity Advisor Asset Allocation Fund |
Fidelity Advisor Balanced Fund |
Fidelity Advisor Biotechnology Fund |
Fidelity Advisor California Municipal Income Fund |
Fidelity Advisor Consumer Industries Fund |
Fidelity Advisor Cyclical Industries Fund |
Fidelity Advisor Developing Communications Fund |
Fidelity Advisor Diversified International Fund |
Fidelity Advisor Dividend Growth Fund |
Fidelity Advisor Dynamic Capital Appreciation Fund |
Fidelity Advisor Electronics Fund |
Fidelity Advisor Emerging Asia Fund |
Fidelity Advisor Emerging Markets Income Fund |
Fidelity Advisor Equity Growth Fund |
Fidelity Advisor Equity Income Fund |
Fidelity Advisor Equity Value Fund |
Fidelity Advisor Europe Capital Appreciation Fund |
Fidelity Advisor Fifty Fund |
Fidelity Advisor Financial Services Fund |
Fidelity Advisor Floating Rate High Income Fund |
Fidelity Advisor Global Equity Fund |
Fidelity Advisor Government Investment Fund |
Fidelity Advisor Growth & Income Fund |
Fidelity Advisor Growth Opportunities |
Fidelity Advisor Health Care Fund |
Fidelity Advisor High Income Advantage Fund |
Fidelity Advisor High Income Fund |
Fidelity Advisor Inflation-Protected Bond Fund |
Fidelity Advisor Intermediate Bond Fund |
Fidelity Advisor International Capital Appreciation Fund |
Fidelity Advisor Investment Grade Bond Fund |
Fidelity Advisor Japan Fund |
Fidelity Advisor Korea Fund |
Fidelity Advisor Large Cap Fund |
Fidelity Advisor Latin America Fund |
Fidelity Advisor Leveraged Company Stock Fund |
Fidelity Advisor Mid Cap Fund |
Fidelity Advisor Mortgage Securities Fund |
Fidelity Advisor Municipal Income Fund |
Fidelity Advisor Natural Resources Fund |
Fidelity Advisor New York Municipal Income Fund |
Fidelity Advisor Overseas Fund |
Fidelity Advisor Real Estate Fund |
Fidelity Advisor Short Fixed-Income Fund |
Fidelity Advisor Small Cap Fund |
Fidelity Advisor Strategic Growth Fund |
Fidelity Advisor Strategic Income Fund |
Fidelity Advisor Tax Managed
Stock Fund |
Fidelity Advisor Technology Fund |
Fidelity Advisor Telecommunications & Utilities Growth Fund |
Fidelity Advisor Value Strategies Fund |
Prime Fund |
Tax-Exempt Fund |
Treasury Fund |
(Fidelity Investment logo)(registered trademark)
AGLO-USAN-0603
1.784880.100
Fidelity® Advisor
Global Equity
Fund - Institutional Class
Semiannual Report
April 30, 2003
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Investment Changes | <Click Here> | A summary of major shifts in the fund's investments over the past six months. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
| | |
| | |
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.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.
Neither the fund nor Fidelity Distributors Corporation is a bank.
For more information on any Fidelity Advisor fund, including charges and expenses, contact your investment professional for a free prospectus. Read it carefully before you invest or send money.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
This shareholder update and report on the performance of your fund is among the first to be produced under the new Sarbanes-Oxley Public Company Accounting and Investor Protection Act of 2002. This act requires that public companies certify, under penalty of law, the financial information they report to shareholders. It was adopted by Congress in reaction to several incidents of corporate malfeasance that brought the integrity of management of some publicly traded companies into question.
After the act was signed into law, the Securities and Exchange Commission interpreted it as applying to mutual funds as well as public companies. Thus, every mutual fund now is required to certify that the financial information provided in annual and semiannual reports to shareholders fully and fairly presents its financial position.
There is little doubt that the intent of Congress and regulators in this matter is a noble one - to improve the accuracy and accountability of financial reporting to investors by corporate America. We in no way condone any of the activities that brought about these requirements, and we welcome any and every reasonable proposal to strengthen investor protection and information disclosure.
That said, we are proud that mutual funds have always provided full and fair disclosure. Governed by the Investment Company Act of 1940 - and monitored and regulated by federal and state agencies, industry oversight associations, and independent directors - mutual funds are among the most transparent of all financial products. For example, the prices of mutual fund shares are established and published every business day, and the majority of members of the Board of Trustees that oversees our funds are not affiliated with the business of Fidelity. The disclosure standards of mutual funds actually have become models for governance and transparency across corporate America.
We are, of course, complying in full with the letter of this new requirement and hope that any future efforts by Congress to reassure investors about the honesty of corporate America will focus on practical and substantive solutions of genuine value to shareholders.
This sort of careful consideration was evident as Congress deliberated President Bush's tax cut package this spring, then enacted legislation that contains a variety of benefits for American families, investors and businesses. Although the final bill did not completely eliminate the tax that individual investors pay when they receive dividends from companies, it still will benefit American investors, and we applaud it in the spirit of compromise that marked the debate in Congress.
At Fidelity, we are committed to acting at all times in accordance with the highest standards of integrity and in the best interests of our fund shareholders. We are proud of the amount of information we provide to those who invest in our funds and pleased to continue that level of communication with you in these reports.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Investment Changes
Top Five Stocks as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Microsoft Corp. (United States of America, Software) | 3.4 | 3.4 |
Johnson & Johnson (United States of America, Pharmaceuticals) | 2.9 | 2.9 |
Yahoo!, Inc. (United States of America, Internet Software & Services) | 2.0 | 2.2 |
Univision Communications, Inc. Class A (United States of America, Media) | 1.9 | 1.2 |
Viacom, Inc. Class B (non-vtg.) (United States of America, Media) | 1.8 | 0.8 |
| 12.0 | |
Top Five Market Sectors as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Consumer Discretionary | 18.8 | 15.6 |
Financials | 17.0 | 14.7 |
Health Care | 15.5 | 15.8 |
Information Technology | 14.3 | 16.3 |
Consumer Staples | 8.9 | 10.2 |
Top Five Countries as of April 30, 2003 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United States of America | 55.5 | 55.9 |
United Kingdom | 10.3 | 11.3 |
Japan | 8.1 | 9.7 |
France | 3.8 | 3.8 |
Spain | 2.7 | 1.9 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2003 | As of October 31, 2002 |
| Stocks and
Equity Futures 97.2% | | | Stocks and
Equity Futures 99.1% | |
| Short-Term
Investments and
Net Other Assets 2.8% | | | Short-Term
Investments and
Net Other Assets 0.9% | |
Semiannual Report
Investments April 30, 2003 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.5% |
| Shares | | Value (Note 1) |
Australia - 2.1% |
Alumina Ltd. | 1,200 | | $ 3,279 |
Amcor Ltd. | 2,800 | | 14,581 |
AMP Diversified Property Trust | 600 | | 1,113 |
Australia & New Zealand Banking Group Ltd. | 3,900 | | 45,579 |
Australian Gas Light Co. | 1,024 | | 7,335 |
Australian Stock Exchange Ltd. | 700 | | 5,045 |
BHP Billiton Ltd. | 9,785 | | 55,431 |
BHP Steel Ltd. | 2,457 | | 5,220 |
CFS Gandel Retail Trust | 6,900 | | 6,053 |
Coca-Cola Amatil Ltd. | 3,600 | | 12,836 |
Commonwealth Bank of Australia | 2,200 | | 37,526 |
CSR Ltd. | 2,900 | | 3,235 |
Fosters Group Ltd. | 3,700 | | 10,387 |
General Property Trust | 3,700 | | 6,956 |
Insurance Australia Group Ltd. | 2,074 | | 4,029 |
John Fairfax Holdings Ltd. | 2,800 | | 5,352 |
Leighton Holdings Ltd. | 1,400 | | 8,527 |
Lihir Gold Ltd. (a) | 2,700 | | 2,216 |
National Australia Bank Ltd. | 2,200 | | 44,805 |
Newcrest Mining Ltd. | 1,600 | | 6,567 |
News Corp. Ltd. | 2,463 | | 17,413 |
Origin Energy Ltd. | 2,000 | | 5,627 |
Publishing & Broadcasting Ltd. | 1,500 | | 8,300 |
Qantas Airways Ltd. | 2,900 | | 5,779 |
QBE Insurance Group Ltd. | 4,399 | | 23,542 |
Rinker Group Ltd. (a) | 2,900 | | 8,832 |
Rio Tinto Ltd. | 1,900 | | 37,838 |
Telstra Corp. Ltd. | 4,100 | | 10,817 |
Westfield Holdings Ltd. | 1,000 | | 9,149 |
Westfield Trust | 2,600 | | 5,588 |
Westpac Banking Corp. | 5,100 | | 50,847 |
Woolworths Ltd. | 2,700 | | 21,860 |
TOTAL AUSTRALIA | | 491,664 |
Austria - 0.1% |
Telekom Austria AG (a) | 3,400 | | 34,901 |
Belgium - 0.3% |
Agfa-Gevaert NV | 1,700 | | 33,837 |
Solvay SA | 450 | | 31,852 |
TOTAL BELGIUM | | 65,689 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Canada - 2.4% |
Abitibi-Consolidated, Inc. | 1,740 | | $ 12,199 |
Agnico-Eagle Mines Ltd. | 580 | | 5,826 |
Alcan, Inc. | 530 | | 15,528 |
Astral Media, Inc. Class A (non-vtg.) | 310 | | 5,212 |
ATI Technologies, Inc. (a) | 160 | | 1,009 |
Bank of Montreal, Quebec | 720 | | 20,141 |
Bank of Nova Scotia | 480 | | 18,681 |
BC Gas, Inc. | 380 | | 10,206 |
BCE, Inc. | 1,470 | | 29,072 |
Biovail Corp. (a) | 420 | | 15,332 |
Brascan Corp. Class A (ltd. vtg.) | 200 | | 4,513 |
Canadian Imperial Bank of Commerce | 350 | | 11,671 |
Canadian National Railway Co. | 310 | | 15,062 |
Celestica, Inc. (sub. vtg.) (a) | 250 | | 2,878 |
CHC Helicopter Corp. Class A (sub. vtg.) | 590 | | 10,680 |
Cinram International, Inc. | 250 | | 2,353 |
Cognos, Inc. (a) | 130 | | 3,537 |
CP Ships Ltd. | 390 | | 5,700 |
Domtar, Inc. | 460 | | 4,862 |
Enbridge, Inc. | 190 | | 5,785 |
EnCana Corp. | 884 | | 28,990 |
Gildan Activewear, Inc. Class A (sub. vtg.) (a) | 180 | | 4,966 |
Glamis Gold Ltd. (a) | 260 | | 2,887 |
Goldcorp, Inc. | 880 | | 9,184 |
Industrial Alliance Life Insurance Co. | 110 | | 2,866 |
Investors Group, Inc. | 160 | | 2,997 |
Jean Coutu Group, Inc. Class A | 490 | | 5,162 |
Kinross Gold Corp. (a) | 940 | | 5,803 |
Loblaw Companies Ltd. | 390 | | 15,235 |
Manitoba Telecom Services, Inc. | 240 | | 6,178 |
Manulife Financial Corp. | 410 | | 10,937 |
Masonite International Corp. (a) | 320 | | 5,458 |
Mega Bloks, Inc. (a)(c) | 380 | | 6,097 |
Methanex Corp. | 1,900 | | 18,092 |
Moore Corp. Ltd. (a) | 590 | | 6,717 |
National Bank of Canada | 900 | | 21,911 |
Newmont Mining Corp. of Canada Ltd. (exchangeable shares) | 354 | | 9,577 |
Nortel Networks Corp. (a) | 1,410 | | 3,638 |
Onex Corp. (sub. vtg.) | 320 | | 3,304 |
Petro-Canada | 500 | | 16,488 |
Potash Corp. of Saskatchewan | 130 | | 7,998 |
Power Financial Corp. | 260 | | 7,482 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Canada - continued |
Precision Drilling Corp. (a) | 150 | | $ 5,135 |
Rogers Communications, Inc. Class B (non-vtg.) (a) | 630 | | 8,262 |
Royal Bank of Canada | 1,340 | | 55,900 |
Saputo, Inc. | 130 | | 2,290 |
Shell Canada Ltd. Class A | 160 | | 5,456 |
Sobeys, Inc. | 350 | | 9,058 |
SouthernEra Resources Ltd. (a) | 840 | | 3,463 |
Sun Life Financial Services of Canada, Inc. | 1,063 | | 21,838 |
Suncor Energy, Inc. | 870 | | 14,317 |
Talisman Energy, Inc. | 320 | | 12,775 |
Teck Cominco Ltd. Class B (sub. vtg.) | 800 | | 5,726 |
TELUS Corp. (non-vtg.) | 430 | | 5,789 |
Toronto-Dominion Bank | 290 | | 6,866 |
Torstar Corp. Class B | 260 | | 4,654 |
TransCanada PipeLines Ltd. | 660 | | 10,543 |
TOTAL CANADA | | 574,286 |
Cayman Islands - 0.5% |
Noble Corp. (a) | 3,960 | | 122,562 |
Denmark - 0.7% |
Danske Bank AS | 2,630 | | 50,657 |
ISS AS | 2,128 | | 79,734 |
Novo Nordisk AS Series B | 1,200 | | 43,518 |
TOTAL DENMARK | | 173,909 |
Finland - 1.0% |
Fortum Oyj | 7,840 | | 56,370 |
Nokia Corp. | 9,210 | | 152,610 |
Sampo Oyj (A Shares) | 5,729 | | 41,640 |
TOTAL FINLAND | | 250,620 |
France - 3.8% |
Alcatel SA (RFD) | 4,200 | | 33,852 |
Aventis SA (France) | 2,193 | | 110,396 |
AXA SA | 8,300 | | 126,315 |
BNP Paribas SA | 1,792 | | 84,280 |
Cap Gemini SA | 1,900 | | 59,233 |
CNP Assurances | 600 | | 24,167 |
Essilor International SA | 1,280 | | 52,514 |
Pernod-Ricard | 425 | | 37,377 |
Television Francaise 1 SA | 1,170 | | 32,930 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
France - continued |
TotalFinaElf SA Series B | 1,725 | | $ 226,665 |
Vivendi Universal SA | 7,100 | | 115,913 |
TOTAL FRANCE | | 903,642 |
Germany - 1.1% |
Altana AG | 600 | | 29,453 |
Beiersdorf AG | 190 | | 23,668 |
Deutsche Boerse AG | 1,101 | | 51,708 |
Muenchener Rueckversicherungs-Gesellschaft AG (Reg.) | 953 | | 95,375 |
Schering AG | 1,530 | | 68,263 |
TOTAL GERMANY | | 268,467 |
Hong Kong - 0.6% |
Bank of East Asia Ltd. | 4,400 | | 8,152 |
Cafe de Coral Holdings Ltd. | 6,000 | | 3,731 |
Cheung Kong Holdings Ltd. | 2,000 | | 11,052 |
CLP Holdings Ltd. | 2,400 | | 9,816 |
CNOOC Ltd. | 3,500 | | 4,600 |
Esprit Holdings Ltd. | 2,000 | | 3,924 |
Guoco Group Ltd. | 783 | | 4,528 |
Hang Seng Bank Ltd. | 900 | | 8,914 |
Hong Kong & China Gas Co. Ltd. | 9,400 | | 11,088 |
Hutchison Whampoa Ltd. | 3,600 | | 20,033 |
Johnson Electric Holdings Ltd. | 10,500 | | 11,309 |
Li & Fung Ltd. | 8,000 | | 8,975 |
Sun Hung Kai Properties Ltd. | 2,000 | | 9,386 |
Swire Pacific Ltd. (A Shares) | 1,500 | | 5,943 |
Television Broadcasts Ltd. | 3,000 | | 9,174 |
Wharf Holdings Ltd. | 2,000 | | 3,500 |
TOTAL HONG KONG | | 134,125 |
Ireland - 0.7% |
Bank of Ireland | 7,938 | | 98,083 |
CRH PLC | 3,827 | | 58,884 |
TOTAL IRELAND | | 156,967 |
Italy - 1.2% |
Autostrade Spa | 5,840 | | 76,378 |
Banco Popolare di Verona e Novara | 6,590 | | 89,717 |
ENI Spa | 6,111 | | 87,384 |
Riunione Adriatica di Sicurta Spa (RAS) | 2,315 | | 33,466 |
TOTAL ITALY | | 286,945 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Japan - 8.1% |
Ajinomoto Co., Inc. | 1,000 | | $ 10,177 |
Aoyama Trading Co. Ltd. | 700 | | 9,444 |
Bank of Yokohama Ltd. | 6,000 | | 21,246 |
Bridgestone Corp. | 3,000 | | 34,139 |
Canon, Inc. | 3,000 | | 120,330 |
Central Glass Co. Ltd. | 2,000 | | 10,177 |
Citizen Watch Co. Ltd. | 3,000 | | 15,871 |
Credit Saison Co. Ltd. | 1,100 | | 20,770 |
Daikin Industries Ltd. | 1,000 | | 16,687 |
Daito Trust Construction Co. | 1,000 | | 19,135 |
Daiwa Securities Group, Inc. | 3,000 | | 11,834 |
Denki Kagaku Kogyo KK | 7,000 | | 15,602 |
Denso Corp. | 1,300 | | 18,588 |
Dowa Mining Co. Ltd. | 4,000 | | 13,289 |
East Japan Railway Co. | 6 | | 27,251 |
Fast Retailing Co. Ltd. | 800 | | 23,348 |
Fuji Photo Film Co. Ltd. | 2,000 | | 51,138 |
Funai Electric Co. Ltd. | 100 | | 10,093 |
Heiwa Corp. | 1,200 | | 18,087 |
Hino Motors Ltd. | 2,000 | | 9,555 |
Hitachi Chemical Co. Ltd. | 1,400 | | 12,694 |
Hoya Corp. | 600 | | 35,578 |
JAFCO Co. Ltd. | 300 | | 10,875 |
Japan Real Estate Investment Corp. | 2 | | 10,766 |
Japan Retail Fund Investment Corp. | 3 | | 14,610 |
JGC Corp. | 3,000 | | 21,195 |
JSR Corp. | 1,000 | | 10,463 |
Kao Corp. | 2,000 | | 36,587 |
KDDI Corp. | 11 | | 33,492 |
Keyence Corp. | 110 | | 17,736 |
Kobayashi Pharmaceutical Co. Ltd. | 300 | | 10,396 |
Konami Corp. | 1,400 | | 18,463 |
Konica Corp. | 3,000 | | 27,528 |
Kyocera Corp. | 800 | | 39,161 |
Matsushita Electric Industrial Co. Ltd. | 4,000 | | 31,760 |
Minolta Co. Ltd. (a) | 5,000 | | 27,756 |
Mitsubishi Heavy Industries Ltd. | 4,000 | | 8,915 |
Mitsubishi Securities Co. Ltd. | 3,000 | | 13,222 |
Mitsubishi Tokyo Finance Group, Inc. (MTFG) | 8 | | 28,160 |
Mitsui & Co. Ltd. | 8,000 | | 38,017 |
Mitsui O.S.K Lines Ltd. | 15,000 | | 39,362 |
Nichicon Corp. | 1,800 | | 18,410 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Japan - continued |
Nidec Corp. | 100 | | $ 5,290 |
Nikko Cordial Corp. | 7,000 | | 18,840 |
Nikon Corp. (a) | 1,000 | | 6,687 |
Nintendo Co. Ltd. | 100 | | 7,839 |
Nippon Sheet Glass Co. Ltd. | 7,000 | | 14,424 |
Nishimatsuya Chain Co. Ltd. | 300 | | 6,649 |
Nissan Motor Co. Ltd. | 11,100 | | 85,082 |
Nitto Denko Corp. | 1,100 | | 31,734 |
NOK Corp. | 3,000 | | 41,734 |
Nomura Holdings, Inc. | 6,000 | | 59,599 |
NTN Corp. | 3,000 | | 11,506 |
Office Building Fund of Japan, Inc. | 2 | | 10,799 |
ORIX Corp. | 300 | | 13,752 |
Ricoh Co. Ltd. | 2,000 | | 30,767 |
Rohm Co. Ltd. | 400 | | 41,347 |
Sanken Electric Co. Ltd. | 1,000 | | 8,747 |
Sankyo Co. Ltd. (Gunma) | 400 | | 8,226 |
Seven Eleven Japan Co. Ltd. | 1,000 | | 23,887 |
Shimachu Co. Ltd. | 1,100 | | 18,235 |
Shin-Etsu Chemical Co. Ltd. | 1,000 | | 30,027 |
SMC Corp. | 300 | | 22,659 |
Stanley Electric Co. Ltd. | 3,000 | | 37,849 |
Sumisho Lease Co. Ltd. | 400 | | 5,591 |
Sumitomo Electric Industries Ltd. | 4,000 | | 22,440 |
Sumitomo Mitsui Financial Group, Inc. | 8 | | 12,583 |
Takeda Chemical Industries Ltd. | 1,700 | | 62,484 |
Terumo Corp. | 2,100 | | 35,025 |
THK Co. Ltd. | 1,400 | | 12,953 |
Tohoku Electric Power Co., Inc. | 1,300 | | 20,764 |
Tokyo Electric Power Co. | 2,300 | | 46,814 |
Tokyo Electron Ltd. | 800 | | 30,077 |
Tosoh Corp. | 9,000 | | 20,363 |
Toyoda Gosei Co. Ltd. | 1,100 | | 19,660 |
Toyota Motor Corp. | 3,100 | | 70,184 |
UMC Japan (a) | 10 | | 7,906 |
Uni-Charm Corp. | 600 | | 23,971 |
Uny Co. Ltd. | 1,000 | | 8,486 |
Yakult Honsha Co. Ltd. | 1,000 | | 14,719 |
TOTAL JAPAN | | 1,931,606 |
Netherlands - 1.1% |
Euronext NV | 4,550 | | 100,739 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Netherlands - continued |
ING Groep NV (Certificaten Van Aandelen) | 6,510 | | $ 105,916 |
Koninklijke Philips Electronics NV | 2,721 | | 50,721 |
TOTAL NETHERLANDS | | 257,376 |
New Zealand - 0.1% |
Telecom Corp. of New Zealand Ltd. | 3,400 | | 9,137 |
The Warehouse Group Ltd. | 1,800 | | 5,655 |
TOTAL NEW ZEALAND | | 14,792 |
Norway - 0.5% |
DnB Holding ASA | 12,920 | | 61,674 |
Gjensidige NOR ASA | 800 | | 27,727 |
Statoil ASA | 4,800 | | 38,074 |
TOTAL NORWAY | | 127,475 |
Papua New Guinea - 0.0% |
Oil Search Ltd. | 15,400 | | 6,176 |
Singapore - 0.3% |
City Developments Ltd. | 1,000 | | 1,906 |
DBS Group Holdings Ltd. | 2,000 | | 9,814 |
Keppel Corp. Ltd. | 2,000 | | 5,031 |
Oversea-Chinese Banking Corp. Ltd. | 1,000 | | 5,330 |
Singapore Airlines Ltd. | 1,000 | | 5,330 |
Singapore Exchange Ltd. | 6,000 | | 4,129 |
Singapore Press Holdings Ltd. | 1,400 | | 13,029 |
United Overseas Bank Ltd. | 3,096 | | 18,160 |
TOTAL SINGAPORE | | 62,729 |
Spain - 2.7% |
Acerinox SA (Reg.) | 930 | | 34,723 |
Altadis SA (Spain) | 8,300 | | 214,392 |
Banco Popular Espanol SA (Reg.) | 1,230 | | 59,747 |
Banco Santander Central Hispano SA | 7,390 | | 58,175 |
Corporacion Mapfre SA (Reg.) | 3,100 | | 29,118 |
Fomento Construcciones y Contratas SA (FOCSA) | 1,370 | | 35,143 |
Grupo Dragados SA | 3,010 | | 57,622 |
Telefonica SA | 13,974 | | 154,851 |
Telefonica SA | 279 | | 3,092 |
TOTAL SPAIN | | 646,863 |
Sweden - 1.0% |
Hennes & Mauritz AB (H&M) (B Shares) | 3,400 | | 75,884 |
Securitas AB (B Shares) | 5,300 | | 62,394 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
Sweden - continued |
Svenska Handelsbanken AB (A Shares) | 3,978 | | $ 63,417 |
Swedish Match Co. | 6,100 | | 45,257 |
TOTAL SWEDEN | | 246,952 |
Switzerland - 2.5% |
Adecco SA | 734 | | 28,181 |
Credit Suisse Group (Reg.) | 1,420 | | 33,969 |
Givaudan AG | 77 | | 29,847 |
Nestle SA (Reg.) | 1,132 | | 231,097 |
Novartis AG (Reg.) | 3,436 | | 135,725 |
Swiss Reinsurance Co. (Reg.) | 748 | | 48,931 |
Swisscom AG (Reg.) | 134 | | 41,504 |
Syngenta AG (Switzerland) | 800 | | 41,347 |
TOTAL SWITZERLAND | | 590,601 |
United Kingdom - 10.3% |
3i Group PLC | 16,520 | | 122,932 |
Amersham PLC | 2,400 | | 17,274 |
Anglo American PLC (United Kingdom) | 2,840 | | 40,722 |
AstraZeneca PLC (Sweden) | 2,312 | | 91,861 |
Barclays PLC | 19,870 | | 137,447 |
BG Group PLC | 21,490 | | 86,062 |
BP PLC | 24,800 | | 159,299 |
British American Tobacco PLC | 1,900 | | 18,243 |
British Sky Broadcasting Group PLC (BSkyB) (a) | 8,700 | | 90,288 |
Compass Group PLC | 12,080 | | 55,675 |
Gallaher Group PLC | 2,000 | | 18,964 |
GlaxoSmithKline PLC | 11,031 | | 223,488 |
HBOS PLC | 6,600 | | 77,419 |
HSBC Holdings PLC: | | | |
(Hong Kong) (Reg.) | 3,844 | | 42,046 |
(United Kingdom) (Reg.) | 15,240 | | 166,695 |
Kingfisher PLC | 7,100 | | 27,780 |
Man Group PLC | 2,550 | | 43,052 |
National Grid Transco PLC | 5,976 | | 39,306 |
Prudential PLC | 7,190 | | 44,069 |
Reed Elsevier PLC | 8,680 | | 69,314 |
Shell Transport & Trading Co. PLC (Reg.) | 39,590 | | 238,134 |
Standard Chartered PLC | 3,400 | | 37,978 |
Unilever PLC | 20,880 | | 204,989 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
United Kingdom - continued |
United Business Media PLC | 8,494 | | $ 33,982 |
Vodafone Group PLC | 193,564 | | 382,483 |
TOTAL UNITED KINGDOM | | 2,469,502 |
United States of America - 54.4% |
Abbott Laboratories | 3,290 | | 133,673 |
Abercrombie & Fitch Co. Class A (a) | 940 | | 30,907 |
AFLAC, Inc. | 930 | | 30,420 |
Agere Systems, Inc.: | | | |
Class A (a) | 260 | | 465 |
Class B (a) | 6,397 | | 10,939 |
Albany International Corp. Class A | 2,280 | | 54,127 |
Allergan, Inc. | 2,070 | | 145,418 |
Allstate Corp. | 2,090 | | 78,981 |
Altria Group, Inc. | 1,870 | | 57,521 |
American International Group, Inc. | 1,420 | | 82,289 |
AmeriCredit Corp. (a) | 8,290 | | 56,289 |
AmerisourceBergen Corp. | 1,110 | | 64,214 |
Amphenol Corp. Class A (a) | 660 | | 29,231 |
Analog Devices, Inc. (a) | 1,000 | | 33,120 |
AOL Time Warner, Inc. (a) | 26,320 | | 360,058 |
Aramark Corp. Class B (a) | 1,910 | | 43,854 |
AT&T Corp. | 2,268 | | 38,669 |
Avon Products, Inc. | 1,590 | | 92,490 |
Baker Hughes, Inc. | 1,800 | | 50,400 |
Bank of America Corp. | 1,280 | | 94,784 |
Bank of Hawaii Corp. | 1,500 | | 49,440 |
BEA Systems, Inc. (a) | 290 | | 3,106 |
Becton, Dickinson & Co. | 2,100 | | 74,340 |
Benchmark Electronics, Inc. (a) | 1,450 | | 37,628 |
BJ Services Co. (a) | 1,100 | | 40,161 |
Black & Decker Corp. | 1,050 | | 43,313 |
Boston Scientific Corp. (a) | 730 | | 31,427 |
Bristol-Myers Squibb Co. | 2,400 | | 61,296 |
Burlington Resources, Inc. | 690 | | 31,954 |
Cardinal Health, Inc. | 1,220 | | 67,442 |
Cendant Corp. (a) | 4,020 | | 57,406 |
Centex Corp. | 1,040 | | 68,661 |
Charles Schwab Corp. | 4,210 | | 36,332 |
ChevronTexaco Corp. | 1,510 | | 94,843 |
Clear Channel Communications, Inc. (a) | 4,054 | | 158,552 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
United States of America - continued |
Comcast Corp.: | | | |
Class A (a) | 3,668 | | $ 117,046 |
Class A (special) (a) | 3,050 | | 91,683 |
Compuware Corp. (a) | 8,930 | | 39,203 |
ConocoPhillips | 1,860 | | 93,558 |
Danaher Corp. | 2,140 | | 147,617 |
Dean Foods Co. (a) | 4,000 | | 174,120 |
Dell Computer Corp. (a) | 5,100 | | 147,441 |
Dow Chemical Co. | 2,170 | | 70,829 |
EMC Corp. (a) | 13,220 | | 120,170 |
ENSCO International, Inc. | 2,170 | | 55,118 |
Fairchild Semiconductor International, Inc. Class A (a) | 1,490 | | 17,686 |
Fannie Mae | 2,280 | | 165,049 |
FedEx Corp. | 730 | | 43,712 |
FirstEnergy Corp. | 890 | | 30,020 |
FleetBoston Financial Corp. | 1,940 | | 51,449 |
Fleetwood Enterprises, Inc. (a) | 2,630 | | 13,255 |
Forest Laboratories, Inc. (a) | 620 | | 32,066 |
Freddie Mac | 4,320 | | 250,128 |
Freeport-McMoRan Copper & Gold, Inc. Class B | 4,530 | | 78,414 |
Furniture Brands International, Inc. (a) | 2,880 | | 68,400 |
Gap, Inc. | 3,850 | | 64,026 |
Gillette Co. | 3,830 | | 116,624 |
HCA, Inc. | 810 | | 26,001 |
Herman Miller, Inc. | 1,200 | | 20,988 |
Home Depot, Inc. | 890 | | 25,036 |
Hudson Highland Group, Inc. (a) | 207 | | 3,070 |
Illinois Tool Works, Inc. | 1,100 | | 70,378 |
Integrated Silicon Solution, Inc. (a) | 970 | | 3,153 |
Intel Corp. | 12,850 | | 236,440 |
Intersil Corp. Class A (a) | 640 | | 11,840 |
J.P. Morgan Chase & Co. | 3,280 | | 96,268 |
Jabil Circuit, Inc. (a) | 3,280 | | 61,336 |
Johnson & Johnson | 12,170 | | 685,901 |
KB Home | 220 | | 10,839 |
KLA-Tencor Corp. (a) | 4,010 | | 164,410 |
Lattice Semiconductor Corp. (a) | 960 | | 8,333 |
Lennar Corp. | 6,980 | | 378,595 |
Lennar Corp. Class B | 698 | | 37,378 |
Liberty Media Corp. Class A (a) | 38,987 | | 428,857 |
Lowe's Companies, Inc. | 2,430 | | 106,653 |
LSI Logic Corp. (a) | 2,750 | | 14,740 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
United States of America - continued |
Lucent Technologies, Inc. (a) | 24,180 | | $ 43,524 |
Lyondell Chemical Co. | 3,780 | | 54,999 |
Manhattan Associates, Inc. (a) | 3,660 | | 88,535 |
Manpower, Inc. | 6,400 | | 210,432 |
Martin Marietta Materials, Inc. | 1,280 | | 37,850 |
Masco Corp. | 3,860 | | 81,330 |
Maytag Corp. | 960 | | 20,006 |
McKesson Corp. | 2,960 | | 82,110 |
Medtronic, Inc. | 4,220 | | 201,463 |
Merrill Lynch & Co., Inc. | 3,510 | | 144,086 |
MetLife, Inc. | 1,160 | | 33,327 |
Mettler-Toledo International, Inc. (a) | 1,590 | | 56,445 |
Micron Technology, Inc. (a) | 7,260 | | 61,710 |
Microsoft Corp. | 31,360 | | 801,864 |
Millennium Chemicals, Inc. | 500 | | 6,955 |
Mohawk Industries, Inc. (a) | 1,106 | | 61,350 |
Morgan Stanley | 2,110 | | 94,423 |
Motorola, Inc. | 15,970 | | 126,323 |
National Semiconductor Corp. (a) | 720 | | 13,486 |
National-Oilwell, Inc. (a) | 2,070 | | 43,449 |
Northrop Grumman Corp. | 280 | | 24,626 |
Northwest Airlines Corp. Class A (a) | 2,305 | | 18,970 |
Parker Hannifin Corp. | 560 | | 22,781 |
PepsiCo, Inc. | 1,990 | | 86,127 |
Performance Food Group Co. (a) | 1,460 | | 51,217 |
Perrigo Co. | 2,480 | | 38,093 |
Pfizer, Inc. | 10,522 | | 323,552 |
PolyOne Corp. | 2,710 | | 12,520 |
Progressive Corp. | 410 | | 27,880 |
Pulte Homes, Inc. | 1,660 | | 96,263 |
RealNetworks, Inc. (a) | 1,490 | | 7,644 |
Resmed, Inc. unit (a) | 765 | | 2,761 |
Scientific-Atlanta, Inc. | 7,060 | | 114,725 |
Semtech Corp. (a) | 1,470 | | 23,373 |
SICOR, Inc. (a) | 230 | | 4,124 |
St. Jude Medical, Inc. (a) | 5,860 | | 307,416 |
Stryker Corp. | 1,380 | | 92,474 |
Synovus Financial Corp. | 1,460 | | 28,426 |
Synthes-Stratec, Inc. | 63 | | 39,770 |
Sysco Corp. | 1,810 | | 52,001 |
Tenet Healthcare Corp. (a) | 2,495 | | 37,026 |
Texas Instruments, Inc. | 3,220 | | 59,538 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
United States of America - continued |
The Coca-Cola Co. | 8,530 | | $ 344,612 |
TMP Worldwide, Inc. (a) | 2,770 | | 46,453 |
Toys 'R' Us, Inc. (a) | 3,280 | | 33,620 |
Transocean, Inc. | 1,400 | | 26,670 |
Tyson Foods, Inc. Class A | 4,110 | | 39,579 |
Union Pacific Corp. | 550 | | 32,736 |
UnitedHealth Group, Inc. | 630 | | 58,042 |
Univision Communications, Inc. Class A (a) | 14,970 | | 453,292 |
Viacom, Inc. Class B (non-vtg.) (a) | 9,890 | | 429,325 |
Wachovia Corp. | 1,380 | | 52,730 |
Wal-Mart Stores, Inc. | 2,460 | | 138,547 |
Weatherford International Ltd. (a) | 3,750 | | 150,863 |
Whole Foods Market, Inc. (a) | 310 | | 18,402 |
Wyeth | 1,370 | | 59,636 |
Yahoo!, Inc. (a) | 18,870 | | 467,599 |
Zimmer Holdings, Inc. (a) | 4,380 | | 205,422 |
TOTAL UNITED STATES OF AMERICA | | 13,014,082 |
TOTAL COMMON STOCKS (Cost $23,604,812) | 22,831,931 |
Nonconvertible Preferred Stocks - 0.9% |
| | | |
Australia - 0.1% |
News Corp. Ltd. (ltd. vtg.) | 2,812 | | 16,635 |
Germany - 0.4% |
ProSiebenSat.1 Media AG | 3,150 | | 17,929 |
Wella AG | 1,100 | | 82,411 |
TOTAL GERMANY | | 100,340 |
Italy - 0.4% |
Telecom Italia Spa Risp (non-vtg.) | 20,080 | | 98,616 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $297,163) | 215,591 |
Government Obligations - 0.3% |
| Principal
Amount | | |
United States of America - 0.3% |
U.S. Treasury Bills, yield at date of purchase 1.1% 7/3/03 (d)
(Cost $74,853) | | $ 75,000 | | 74,854 |
Money Market Funds - 3.7% |
| Shares | | Value (Note 1) |
Fidelity Cash Central Fund, 1.29% (b)
(Cost $878,028) | 878,028 | | $ 878,028 |
TOTAL INVESTMENT PORTFOLIO - 100.4% (Cost $24,854,856) | | 24,000,404 |
NET OTHER ASSETS - (0.4)% | | (95,358) |
NET ASSETS - 100% | $ 23,905,046 |
Futures Contracts |
| Expiration
Date | | Underlying
Face Amount
at Value | | Unrealized
Gain/(Loss) |
Purchased |
Equity Index Contracts |
4 S&P 500 E-Mini Index Contracts | June 2003 | | $ 183,220 | | $ (4) |
|
The face value of futures purchased as a percentage of net assets - 0.8% |
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 $6,097 or 0.0% of net assets. |
(d) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $24,951. |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $7,046,927 and $7,612,500. |
The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $321 for the period. |
Income Tax Information |
At October 31, 2002, the fund had a capital loss carryforward of approximately $5,143,000 of which $301,000, $2,322,000 and $2,520,000 will expire on October 31, 2008, 2009 and 2010, respectively. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| April 30, 2003 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $24,854,856) - See accompanying schedule | | $ 24,000,404 |
Receivable for investments sold | | 116,490 |
Receivable for fund shares sold | | 63,041 |
Dividends receivable | | 69,289 |
Interest receivable | | 650 |
Receivable from investment adviser for expense reductions | | 19,643 |
Total assets | | 24,269,517 |
| | |
Liabilities | | |
Payable for investments purchased | $ 270,743 | |
Payable for fund shares redeemed | 23,199 | |
Accrued management fee | 14,155 | |
Distribution fees payable | 11,538 | |
Other payables and accrued expenses | 44,836 | |
Total liabilities | | 364,471 |
| | |
Net Assets | | $ 23,905,046 |
Net Assets consist of: | | |
Paid in capital | | $ 30,824,566 |
Accumulated net investment loss | | (60,802) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (6,006,574) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (852,144) |
Net Assets | | $ 23,905,046 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| April 30, 2003 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share
($3,634,121 ÷ 406,500 shares) | | $ 8.94 |
| | |
Maximum offering price per share (100/94.25 of $8.94) | | $ 9.49 |
Class T:
Net Asset Value and redemption price per share ($13,432,503 ÷ 1,517,445 shares) | | $ 8.85 |
| | |
Maximum offering price per share (100/96.50 of $8.85) | | $ 9.17 |
Class B:
Net Asset Value and offering price per share ($3,932,699 ÷ 454,019 shares) A | | $ 8.66 |
| | |
Class C:
Net Asset Value and offering price per share ($2,758,700 ÷ 318,069 shares) A | | $ 8.67 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($147,023 ÷ 16,259 shares) | | $ 9.04 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
| Six months ended April 30, 2003 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 191,586 |
Interest | | 6,447 |
| | 198,033 |
Less foreign taxes withheld | | (15,708) |
Total income | | 182,325 |
| | |
Expenses | | |
Management fee | $ 86,197 | |
Transfer agent fees | 63,270 | |
Distribution fees | 70,610 | |
Accounting fees and expenses | 30,091 | |
Non-interested trustees' compensation | 48 | |
Custodian fees and expenses | 31,949 | |
Registration fees | 47,953 | |
Audit | 19,010 | |
Legal | 793 | |
Miscellaneous | 64 | |
Total expenses before reductions | 349,985 | |
Expense reductions | (106,858) | 243,127 |
Net investment income (loss) | | (60,802) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities | (747,562) | |
Foreign currency transactions | 624 | |
Futures contracts | 15,548 | |
Total net realized gain (loss) | | (731,390) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 1,603,967 | |
Assets and liabilities in foreign currencies | 1,029 | |
Futures contracts | (9,971) | |
Total change in net unrealized appreciation (depreciation) | | 1,595,025 |
Net gain (loss) | | 863,635 |
Net increase (decrease) in net assets resulting from operations | | $ 802,833 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended
April 30, 2003
(Unaudited) | Year ended
October 31,
2002 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (60,802) | $ (215,199) |
Net realized gain (loss) | (731,390) | (2,446,716) |
Change in net unrealized appreciation (depreciation) | 1,595,025 | (634,363) |
Net increase (decrease) in net assets resulting
from operations | 802,833 | (3,296,278) |
Share transactions - net increase (decrease) | (359,950) | 6,075,998 |
Total increase (decrease) in net assets | 442,883 | 2,779,720 |
| | |
Net Assets | | |
Beginning of period | 23,462,163 | 20,682,443 |
End of period (including accumulated net investment loss of $60,802 and undistributed net investment income of $0, respectively.) | $ 23,905,046 | $ 23,462,163 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 H |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.62 | $ 9.76 | $ 12.62 | $ 11.79 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | (.01) | (.05) | (.02) G | (.04) F | (.04) |
Net realized and unrealized gain (loss) | .33 | (1.09) | (2.84) | 1.13 | 1.83 |
Total from investment operations | .32 | (1.14) | (2.86) | 1.09 | 1.79 |
Distributions from net realized gain | - | - | - | (.20) | - |
Distributions in excess of net realized gain | - | - | - | (.06) | - |
Total distributions | - | - | - | (.26) | - |
Net asset value, end of period | $ 8.94 | $ 8.62 | $ 9.76 | $ 12.62 | $ 11.79 |
Total Return B,C,D | 3.71% | (11.68)% | (22.66)% | 9.28% | 17.90% |
Ratios to Average Net Assets I | | | | |
Expenses before expense reductions | 2.50% A | 2.38% | 2.40% | 2.32% | 4.39% A |
Expenses net of voluntary waivers, if any | 1.77% A | 1.94% | 2.00% | 2.00% | 2.00% A |
Expenses net of all reductions | 1.74% A | 1.92% | 1.96% | 1.99% | 1.99% A |
Net investment income (loss) | (.18)% A | (.57)% | (.17)% | (.33)% | (.47)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 3,634 | $ 3,343 | $ 3,516 | $ 2,868 | $ 1,853 |
Portfolio turnover rate | 62% A | 76% | 141% | 106% | 69% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Investment income per share reflects a special dividend which amounted to $.03 per share. G Investment income per share reflects a special dividend which amounted to $.04 per share. H For the period December 17, 1998 (commencement of operations) to October 31, 1999. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 H |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.54 | $ 9.70 | $ 12.60 | $ 11.77 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | (.02) | (.08) | (.05) G | (.08) F | (.07) |
Net realized and unrealized gain (loss) | .33 | (1.08) | (2.85) | 1.15 | 1.84 |
Total from investment operations | .31 | (1.16) | (2.90) | 1.07 | 1.77 |
Distributions from net realized gain | - | - | - | (.18) | - |
Distributions in excess of net realized gain | - | - | - | (.06) | - |
Total distributions | - | - | - | (.24) | - |
Net asset value, end of period | $ 8.85 | $ 8.54 | $ 9.70 | $ 12.60 | $ 11.77 |
Total Return B,C,D | 3.63% | (11.96)% | (23.02)% | 9.12% | 17.70% |
Ratios to Average Net Assets I | | | | |
Expenses before expense reductions | 2.92% A | 2.85% | 2.88% | 2.70% | 4.70% A |
Expenses net of voluntary waivers, if any | 2.02% A | 2.19% | 2.25% | 2.25% | 2.25% A |
Expenses net of all reductions | 1.99% A | 2.16% | 2.21% | 2.24% | 2.24% A |
Net investment income (loss) | (.43)% A | (.81)% | (.42)% | (.58)% | (.72)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 13,433 | $ 12,496 | $ 7,642 | $ 8,019 | $ 3,204 |
Portfolio turnover rate | 62% A | 76% | 141% | 106% | 69% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the sales charges. E Calculated based on average shares outstanding during the period. F Investment income per share reflects a special dividend which amounted to $.03 per share. G Investment income per share reflects a special dividend which amounted to $.04 per share. H For the period December 17, 1998 (commencement of operations) to October 31, 1999. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 H |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.38 | $ 9.56 | $ 12.48 | $ 11.71 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | (.04) | (.12) | (.10) G | (.14) F | (.12) |
Net realized and unrealized gain (loss) | .32 | (1.06) | (2.82) | 1.14 | 1.83 |
Total from investment operations | .28 | (1.18) | (2.92) | 1.00 | 1.71 |
Distributions from net realized gain | - | - | - | (.17) | - |
Distributions in excess of net realized gain | - | - | - | (.06) | - |
Total distributions | - | - | - | (.23) | - |
Net asset value, end of period | $ 8.66 | $ 8.38 | $ 9.56 | $ 12.48 | $ 11.71 |
Total Return B,C,D | 3.34% | (12.34)% | (23.40)% | 8.56% | 17.10% |
Ratios to Average Net Assets I | | | | |
Expenses before expense reductions | 3.52% A | 3.36% | 3.30% | 3.24% | 5.19% A |
Expenses net of voluntary waivers, if any | 2.50% A | 2.69% | 2.75% | 2.75% | 2.75% A |
Expenses net of all reductions | 2.47% A | 2.66% | 2.71% | 2.74% | 2.74% A |
Net investment income (loss) | (.92)% A | (1.31)% | (.92)% | (1.08)% | (1.22)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 3,933 | $ 3,848 | $ 4,865 | $ 5,187 | $ 2,268 |
Portfolio turnover rate | 62% A | 76% | 141% | 106% | 69% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Investment income per share reflects a special dividend which amounted to $.03 per share.
G Investment income per share reflects a special dividend which amounted to $.04 per share. H For the period December 17, 1998 (commencement of operations) to October 31, 1999. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 H |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.39 | $ 9.58 | $ 12.49 | $ 11.71 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | (.04) | (.12) | (.10) G | (.14) F | (.12) |
Net realized and unrealized gain (loss) | .32 | (1.07) | (2.81) | 1.15 | 1.83 |
Total from investment operations | .28 | (1.19) | (2.91) | 1.01 | 1.71 |
Distributions from net realized gain | - | - | - | (.17) | - |
Distributions in excess of net realized gain | - | - | - | (.06) | - |
Total distributions | - | - | - | (.23) | - |
Net asset value, end of period | $ 8.67 | $ 8.39 | $ 9.58 | $ 12.49 | $ 11.71 |
Total Return B,C,D | 3.34% | (12.42)% | (23.30)% | 8.65% | 17.10% |
Ratios to Average Net Assets I | | | | |
Expenses before expense reductions | 3.34% A | 3.18% | 3.16% | 3.13% | 5.16% A |
Expenses net of voluntary waivers, if any | 2.50% A | 2.69% | 2.75% | 2.75% | 2.75% A |
Expenses net of all reductions | 2.47% A | 2.66% | 2.71% | 2.74% | 2.74% A |
Net investment income (loss) | (.92)% A | (1.31)% | (.92)% | (1.08)% | (1.22)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 2,759 | $ 2,967 | $ 3,750 | $ 5,146 | $ 2,649 |
Portfolio turnover rate | 62% A | 76% | 141% | 106% | 69% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Total returns do not include the effect of the contingent deferred sales charge. E Calculated based on average shares outstanding during the period. F Investment income per share reflects a special dividend which amounted to $.03 per share.
G Investment income per share reflects a special dividend which amounted to $.04 per share. H For the period December 17, 1998 (commencement of operations) to October 31, 1999. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 | 1999 G |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.68 | $ 9.81 | $ 12.68 | $ 11.81 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) D | - I | (.03) | .01 F | (.01) E | (.02) |
Net realized and unrealized gain (loss) | .36 | (1.10) | (2.88) | 1.16 | 1.83 |
Total from investment operations | .36 | (1.13) | (2.87) | 1.15 | 1.81 |
Distributions from net realized gain | - | - | - | (.21) | - |
Distributions in excess of net realized gain | - | - | - | (.07) | - |
Total distributions | - | - | - | (.28) | - |
Net asset value, end of period | $ 9.04 | $ 8.68 | $ 9.81 | $ 12.68 | $ 11.81 |
Total Return B,C | 4.15% | (11.52)% | (22.63)% | 9.79% | 18.10% |
Ratios to Average Net Assets H | | | | | |
Expenses before expense reductions | 2.10% A | 1.95% | 2.02% | 2.06% | 4.10% A |
Expenses net of voluntary waivers, if any | 1.50% A | 1.70% | 1.75% | 1.75% | 1.75% A |
Expenses net of all reductions | 1.47% A | 1.67% | 1.71% | 1.74% | 1.74% A |
Net investment income (loss) | .08% A | (.32)% | .08% | (.08)% | (.22)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 147 | $ 808 | $ 909 | $ 1,256 | $ 1,182 |
Portfolio turnover rate | 62% A | 76% | 141% | 106% | 69% A |
A Annualized B Total returns for periods of less than one year are not annualized. C Total returns would have been lower had certain expenses not been reduced during the periods shown. D Calculated based on average shares outstanding during the period. E Investment income per share reflects a special dividend which amounted to $.03 per share. F Investment income per share reflects a special dividend which amounted to $.04 per share. G For the period December 17, 1998 (commencement of operations) to October 31, 1999. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I Amount represents less than $.01 per-share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2003 (Unaudited)
1. Significant Accounting Policies.
Fidelity Advisor Global Equity Fund (the fund) is a fund of Fidelity Advisor Series VIII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
The fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
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 fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. If an event that is expected to materially affect the value of a security occurs after the close of an exchange or market on which that security trades, but prior to the NAV calculation, then that security will be fair valued taking the event into account. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
1. Significant Accounting Policies - continued
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. 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 fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, which includes amortization of premium and accretion of discount on debt securities, as required, 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.
Income Tax Information and Distributions to Shareholders. Each year the fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. Foreign taxes are provided for based on each fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Income dividends and capital gain distributions are declared separately for each class. 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. Capital accounts within the financial statements are adjusted for permanent and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due to futures transactions, foreign currency transactions, passive foreign investment companies (PFIC), prior period premium and discount on debt
Semiannual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
securities, market discount, net operating losses, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investments including unrealized appreciation (depreciation) as of period end was as follows:
Unrealized appreciation | $ 2,003,349 | | |
Unrealized depreciation | (2,987,153) | |
Net unrealized appreciation (depreciation) | $ (983,804) | |
Cost for federal income tax purposes | $ 24,984,208 | |
2. Operating Policies.
Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. The custodian bank receives the collateral, which is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
Futures Contracts. The fund may use futures contracts to manage its exposure to the stock market. Buying futures tends to increase the fund's exposure to the underlying instrument, while selling futures tends to decrease the fund's exposure to the underlying instrument or hedge other fund investments. The underlying face amount at value of any open futures contracts at period end is shown in the Schedule of Investments under the caption "Futures Contracts." This amount reflects each contract's exposure to the underlying instrument at period end. Losses may arise from changes in the value of the underlying instruments or if the counter-parties do not perform under the contracts' terms. Gains (losses) are realized upon the expiration or closing of the futures contracts. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.
Restricted Securities. The fund may 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
2. Operating Policies - continued
Restricted Securities - continued
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 captions "Legend" and/or "Other Information" at the end of the fund's Schedule of Investments.
3. Purchases and Sales of Investments.
Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee.
The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the fund's average net assets and a group fee rate that averaged .28% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .73% of the fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares, except for Institutional Class. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. Class A and Class T Plans also authorize the use of brokerage commissions to pay distribution expenses. In addition, FDC may pay financial intermediaries for selling shares of the fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, the total amounts paid to and retained by FDC and the amount of distribution expenses paid with brokerage commissions were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC | Paid with
Commissions |
Class A | .02% | .25% | $ 4,559 | $ 426 | $ 308 |
Class T | .27% | .25% | 33,146 | 226 | 1,160 |
Class B | .75% | .25% | 18,903 | 14,210 | - |
Class C | .75% | .25% | 14,002 | 2,044 | - |
| | | $ 70,610 | $ 16,906 | $ 1,468 |
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares of the fund. FDC receives the proceeds of contingent deferred sales charge (CDSC) levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, and .25% for certain purchases of Class A and Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC | |
Class A | $ 1,675 | |
Class T | 1,593 | |
Class B* | 6,202 | |
Class C* | 848 | |
| $ 10,318 | |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the
sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent (collectively referred to as the transfer agent) for each class of the fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the fund. FIIOC pays for typesetting, printing and mailing of all shareholder reports, except proxy statements. For the period, the following amounts were paid to FIIOC:
| Amount | % of
Average
Net Assets |
Class A | $ 6,679 | .39* |
Class T | 35,968 | .56* |
Class B | 12,799 | .68* |
Class C | 6,929 | .49* |
Institutional Class | 895 | .26* |
| $ 63,270 | |
* Annualized
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the fund's accounting records. The fee is based on the level of average net assets for the month plus out-of-pocket expenses.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Fees and Other Transactions with Affiliates - continued
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $6,091 for the period.
Brokerage Commissions. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms are shown under the caption "Other Information" at the end of the fund's Schedule of Investments.
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $3.5 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 fund has agreed to pay commitment fees on its pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.
Semiannual Report
6. Expense Reductions.
FMR agreed to reimburse the classes of the fund to the extent operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, are excluded from this reimbursement.
| Expense
Limitations | Reimbursement
from adviser |
| | |
Class A | 1.75% | $ 12,518 |
Class T | 2.00% | 57,930 |
Class B | 2.50% | 19,170 |
Class C | 2.50% | 11,674 |
Institutional Class | 1.50% | 2,047 |
| | $ 103,339 |
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services may include payments of expenses on behalf of the fund to support distribution of fund shares for Class A and Class T ("Distribution Expense Reduction") and to pay other fund expenses, such as transfer agent fees ("Other Expense Reduction") collectively referred to as "Directed Brokerage" in the accompanying table. Directed brokerage generally benefits all shareholders of each class by reducing fund expenses. Each of Class A and Class T shareholders' Other Expense Reduction benefit is reduced by the amount of any Distribution Expense Reduction. All of the applicable expense reductions are noted in the table below.
| Directed
Brokerage |
| Distribution
expense
reduction | Other
expense
reduction |
Fund Level | $ - | $ 2,051 |
Class A | 308 | - |
Class T | 1,160 | - |
| $ 1,468 | $ 2,051 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Other Information.
At the end of the period, two unaffiliated shareholders were the owners of record of 26% of the total outstanding shares of the fund.
8. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2003 | Year ended
October 31,
2002 | Six months ended
April 30,
2003 | Year ended
October 31,
2002 |
Class A | | | | |
Shares sold | 57,162 | 120,119 | $ 486,628 | $ 1,181,117 |
Shares redeemed | (38,637) | (92,414) | (331,407) | (899,451) |
Net increase (decrease) | 18,525 | 27,705 | $ 155,221 | $ 281,666 |
Class T | | | | |
Shares sold | 329,004 | 1,004,408 | $ 2,801,019 | $ 9,714,971 |
Shares redeemed | (274,398) | (329,227) | (2,325,497) | (3,121,953) |
Net increase (decrease) | 54,606 | 675,181 | $ 475,522 | $ 6,593,018 |
Class B | | | | |
Shares sold | 40,922 | 109,175 | $ 339,707 | $ 1,054,797 |
Shares redeemed | (46,096) | (158,673) | (382,036) | (1,521,443) |
Net increase (decrease) | (5,174) | (49,498) | $ (42,329) | $ (466,646) |
Class C | | | | |
Shares sold | 21,063 | 97,361 | $ 175,544 | $ 951,823 |
Shares redeemed | (56,606) | (135,352) | (473,280) | (1,300,309) |
Net increase (decrease) | (35,543) | (37,991) | $ (297,736) | $ (348,486) |
Institutional Class | | | | |
Shares sold | 27,787 | 18,329 | $ 244,307 | $ 181,469 |
Shares redeemed | (104,586) | (17,921) | (894,935) | (165,023) |
Net increase (decrease) | (76,799) | 408 | $ (650,628) | $ 16,446 |
Semiannual Report
Semiannual Report
Semiannual Report
Semiannual Report
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 International
Investment Advisors
Fidelity International Investments Advisors (U.K.) Limited
Fidelity Investments Japan Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
Semiannual Report
Fidelity Advisor Aggressive Growth Fund |
Fidelity Advisor Asset Allocation Fund |
Fidelity Advisor Balanced Fund |
Fidelity Advisor Biotechnology Fund |
Fidelity Advisor California Municipal Income Fund |
Fidelity Advisor Consumer Industries Fund |
Fidelity Advisor Cyclical Industries Fund |
Fidelity Advisor Developing Communications Fund |
Fidelity Advisor Diversified International Fund |
Fidelity Advisor Dividend Growth Fund |
Fidelity Advisor Dynamic Capital Appreciation Fund |
Fidelity Advisor Electronics Fund |
Fidelity Advisor Emerging Asia Fund |
Fidelity Advisor Emerging Markets Income Fund |
Fidelity Advisor Equity Growth Fund |
Fidelity Advisor Equity Income Fund |
Fidelity Advisor Equity Value Fund |
Fidelity Advisor Europe Capital Appreciation Fund |
Fidelity Advisor Fifty Fund |
Fidelity Advisor Financial Services Fund |
Fidelity Advisor Floating Rate High Income Fund |
Fidelity Advisor Global Equity Fund |
Fidelity Advisor Government Investment Fund |
Fidelity Advisor Growth & Income Fund |
Fidelity Advisor Growth Opportunities |
Fidelity Advisor Health Care Fund |
Fidelity Advisor High Income Advantage Fund |
Fidelity Advisor High Income Fund |
Fidelity Advisor Inflation-Protected Bond Fund |
Fidelity Advisor Intermediate Bond Fund |
Fidelity Advisor International Capital Appreciation Fund |
Fidelity Advisor Investment Grade Bond Fund |
Fidelity Advisor Japan Fund |
Fidelity Advisor Korea Fund |
Fidelity Advisor Large Cap Fund |
Fidelity Advisor Latin America Fund |
Fidelity Advisor Leveraged Company Stock Fund |
Fidelity Advisor Mid Cap Fund |
Fidelity Advisor Mortgage Securities Fund |
Fidelity Advisor Municipal Income Fund |
Fidelity Advisor Natural Resources Fund |
Fidelity Advisor New York Municipal Income Fund |
Fidelity Advisor Overseas Fund |
Fidelity Advisor Real Estate Fund |
Fidelity Advisor Short Fixed-Income Fund |
Fidelity Advisor Small Cap Fund |
Fidelity Advisor Strategic Growth Fund |
Fidelity Advisor Strategic Income Fund |
Fidelity Advisor Tax Managed
Stock Fund |
Fidelity Advisor Technology Fund |
Fidelity Advisor Telecommunications & Utilities Growth Fund |
Fidelity Advisor Value Strategies Fund |
Prime Fund |
Tax-Exempt Fund |
Treasury Fund |
(Fidelity Investment logo)(registered trademark)
AGLOI-USAN-0603
1.784881.100
Fidelity® Advisor
Korea
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2003
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Investment Changes | <Click Here> | A summary of major shifts in the
fund's investments. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
| | |
| | |
| | |
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.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.
Neither the fund nor Fidelity Distributors Corporation is a bank.
For more information on any Fidelity fund, including charges and expenses, call 1-800-544-6666 for a free prospectus. Read it carefully before you invest or send money.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
This shareholder update and report on the performance of your fund is among the first to be produced under the new Sarbanes-Oxley Public Company Accounting and Investor Protection Act of 2002. This act requires that public companies certify, under penalty of law, the financial information they report to shareholders. It was adopted by Congress in reaction to several incidents of corporate malfeasance that brought the integrity of management of some publicly traded companies into question.
After the act was signed into law, the Securities and Exchange Commission interpreted it as applying to mutual funds as well as public companies. Thus, every mutual fund now is required to certify that the financial information provided in annual and semiannual reports to shareholders fully and fairly presents its financial position.
There is little doubt that the intent of Congress and regulators in this matter is a noble one - to improve the accuracy and accountability of financial reporting to investors by corporate America. We in no way condone any of the activities that brought about these requirements, and we welcome any and every reasonable proposal to strengthen investor protection and information disclosure.
That said, we are proud that mutual funds have always provided full and fair disclosure. Governed by the Investment Company Act of 1940 - and monitored and regulated by federal and state agencies, industry oversight associations, and independent directors - mutual funds are among the most transparent of all financial products. For example, the prices of mutual fund shares are established and published every business day, and the majority of members of the Board of Trustees that oversees our funds are not affiliated with the business of Fidelity. The disclosure standards of mutual funds actually have become models for governance and transparency across corporate America.
We are, of course, complying in full with the letter of this new requirement and hope that any future efforts by Congress to reassure investors about the honesty of corporate America will focus on practical and substantive solutions of genuine value to shareholders.
This sort of careful consideration was evident as Congress deliberated President Bush's tax cut package this spring, then enacted legislation that contains a variety of benefits for American families, investors and businesses. Although the final bill did not completely eliminate the tax that individual investors pay when they receive dividends from companies, it still will benefit American investors, and we applaud it in the spirit of compromise that marked the debate in Congress.
At Fidelity, we are committed to acting at all times in accordance with the highest standards of integrity and in the best interests of our fund shareholders. We are proud of the amount of information we provide to those who invest in our funds and pleased to continue that level of communication with you in these reports.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Investment Changes
Top Ten Stocks as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Samsung Electronics Co. Ltd. | 21.4 | 23.5 |
Kookmin Bank | 8.2 | 7.0 |
KT Corp. | 6.3 | 7.6 |
Shinsegae Co. Ltd. | 4.8 | 0.0 |
Shinhan Financial Group Co. Ltd. | 4.5 | 4.4 |
SK Telecom Co. Ltd. | 4.3 | 5.9 |
Hyundai Motor Co. Ltd. | 4.2 | 3.5 |
Samsung Fire & Marine Insurance Co. Ltd. | 4.0 | 2.5 |
POSCO | 3.5 | 3.0 |
Korea Electric Power Corp. | 3.4 | 4.0 |
| 64.6 | |
Market Sectors as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 30.4 | 29.2 |
Financials | 22.3 | 27.9 |
Consumer Discretionary | 17.6 | 9.4 |
Telecommunication Services | 10.6 | 14.0 |
Consumer Staples | 5.5 | 3.0 |
Materials | 5.1 | 3.8 |
Utilities | 3.4 | 4.0 |
Industrials | 1.5 | 3.6 |
Energy | 1.3 | 0.8 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2003 | As of October 31, 2002 |
| Stocks 97.7% | | | Stocks 95.7% | |
| Short-Term
Investments and
Net Other Assets 2.3% | | | Short-Term
Investments and
Net Other Assets 4.3% | |
| | | | | |
Semiannual Report
Investments April 30, 2003 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.7% |
| Shares | | Value (Note 1) |
CONSUMER DISCRETIONARY - 17.6% |
Automobiles - 6.8% |
Hyundai Motor Co. Ltd. | 22,000 | | $ 519,885 |
Kia Motors Corp. | 45,000 | | 313,092 |
| | 832,977 |
Hotels, Restaurants & Leisure - 1.0% |
Paradise Co. Ltd. | 38,000 | | 126,719 |
Household Durables - 3.4% |
LG Electronics, Inc. | 12,000 | | 413,997 |
Internet & Catalog Retail - 1.6% |
LG Home Shopping, Inc. | 3,400 | | 193,446 |
Multiline Retail - 4.8% |
Shinsegae Co. Ltd. | 5,000 | | 596,953 |
TOTAL CONSUMER DISCRETIONARY | | 2,164,092 |
CONSUMER STAPLES - 5.5% |
Beverages - 2.8% |
Lotte Chilsung Beverage Co. Ltd. | 700 | | 346,974 |
Food Products - 2.7% |
Lotte Confectionery Co. Ltd. | 468 | | 169,937 |
Nong Shim Co. Ltd. | 2,200 | | 163,936 |
| | 333,873 |
TOTAL CONSUMER STAPLES | | 680,847 |
ENERGY - 1.3% |
Oil & Gas - 1.3% |
S-Oil Corp. | 10,000 | | 163,030 |
FINANCIALS - 22.3% |
Banks - 15.9% |
Chohung Bank Co. Ltd. (a) | 100,000 | | 327,707 |
Hana Bank | 7,000 | | 60,231 |
Kookmin Bank | 36,000 | | 1,010,786 |
Shinhan Financial Group Co. Ltd. | 56,000 | | 553,314 |
| | 1,952,038 |
Diversified Financials - 2.4% |
KTBnetwork Co. Ltd. | 70,000 | | 112,968 |
Samsung Securities Co. Ltd. (a) | 9,000 | | 185,261 |
| | 298,229 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
FINANCIALS - continued |
Insurance - 4.0% |
Samsung Fire & Marine Insurance Co. Ltd. | 10,000 | | $ 494,030 |
TOTAL FINANCIALS | | 2,744,297 |
INDUSTRIALS - 1.5% |
Building Products - 0.8% |
Keumkang Ltd. | 1,200 | | 102,264 |
Construction & Engineering - 0.7% |
Daelim Industrial Co. | 5,000 | | 81,515 |
TOTAL INDUSTRIALS | | 183,779 |
INFORMATION TECHNOLOGY - 30.4% |
Computers & Peripherals - 2.3% |
You Eal Electronics Co. Ltd. | 14,800 | | 282,717 |
Electronic Equipment & Instruments - 4.7% |
KH Vatec Co. Ltd. | 4,800 | | 249,782 |
Samsung Electro-Mechanics Co. Ltd. | 5,000 | | 147,592 |
Samsung SDI Co. Ltd. | 3,000 | | 187,732 |
| | 585,106 |
Internet Software & Services - 2.0% |
NCsoft Corp. (a) | 2,800 | | 244,380 |
Semiconductor Equipment & Products - 21.4% |
Samsung Electronics Co. Ltd. | 10,500 | | 2,636,887 |
TOTAL INFORMATION TECHNOLOGY | | 3,749,090 |
MATERIALS - 5.1% |
Chemicals - 1.6% |
LG Chemical Ltd. | 6,000 | | 199,094 |
Metals & Mining - 3.5% |
POSCO | 5,160 | | 435,488 |
TOTAL MATERIALS | | 634,582 |
TELECOMMUNICATION SERVICES - 10.6% |
Diversified Telecommunication Services - 6.3% |
KT Corp. | 18,800 | | 772,433 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
TELECOMMUNICATION SERVICES - continued |
Wireless Telecommunication Services - 4.3% |
SK Telecom Co. Ltd. | 3,800 | | $ 528,777 |
TOTAL TELECOMMUNICATION SERVICES | | 1,301,210 |
UTILITIES - 3.4% |
Electric Utilities - 3.4% |
Korea Electric Power Corp. | 25,000 | | 420,955 |
TOTAL COMMON STOCKS (Cost $8,491,336) | 12,041,882 |
Nonconvertible Bonds - 0.0% |
| Principal Amount | | |
FINANCIALS - 0.0% |
Banks - 0.0% |
Shinhan Bank 0% 12/2/48 | KRW | 64,930,000 | | 102 |
TOTAL NONCONVERTIBLE BONDS (Cost $4,830) | 102 |
Money Market Funds - 5.5% |
| Shares | | |
Fidelity Cash Central Fund, 1.29% (b)
(Cost $674,960) | 674,960 | | 674,960 |
TOTAL INVESTMENT PORTFOLIO - 103.2% (Cost $9,171,126) | | 12,716,944 |
NET OTHER ASSETS - (3.2)% | | (398,041) |
NET ASSETS - 100% | $ 12,318,903 |
Currency Abbreviations |
KRW | - | Korean won |
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 $7,671,817 and $12,431,776, respectively. |
The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $47 for the period. |
Income Tax Information |
At October 31, 2002, the fund had a capital loss carryforward of approximately $17,309,000 of which $3,680,000, $12,115,000 and $1,514,000 will expire on October 31, 2005, 2006 and 2009, respectively. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| April 30, 2003 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $9,171,126) - See accompanying schedule | | $ 12,716,944 |
Receivable for fund shares sold | | 53,064 |
Dividends receivable | | 8,580 |
Interest receivable | | 395 |
Receivable from investment adviser for expense reductions | | 15,718 |
Total assets | | 12,794,701 |
| | |
Liabilities | | |
Payable for investments purchased | $ 369,692 | |
Payable for fund shares redeemed | 47,451 | |
Accrued management fee | 8,225 | |
Distribution fees payable | 3,528 | |
Other payables and accrued expenses | 46,902 | |
Total liabilities | | 475,798 |
| | |
Net Assets | | $ 12,318,903 |
Net Assets consist of: | | |
Paid in capital | | $ 24,597,915 |
Undistributed net investment income | | 135,470 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (15,959,598) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 3,545,116 |
Net Assets | | $ 12,318,903 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| April 30, 2003 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share
($9,555,975 ÷ 1,148,051 shares) | | $ 8.32 |
| | |
Maximum offering price per share (100/94.25 of $8.32) | | $ 8.83 |
Class T:
Net Asset Value and redemption price per share ($1,066,073 ÷ 129,187 shares) | | $ 8.25 |
| | |
Maximum offering price per share (100/96.50 of $8.25) | | $ 8.55 |
Class B:
Net Asset Value and offering price per share ($904,653 ÷ 111,210 shares) A | | $ 8.13 |
| | |
Class C:
Net Asset Value and offering price per share ($587,846 ÷ 72,216 shares) A | | $ 8.14 |
| | |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($204,356 ÷ 24,398 shares) | | $ 8.38 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
| Six months ended April 30, 2003 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 348,813 |
Interest | | 2,710 |
| | 351,523 |
Less foreign taxes withheld | | (57,759) |
Total income | | 293,764 |
| | |
Expenses | | |
Management fee | $ 63,275 | |
Transfer agent fees | 35,372 | |
Distribution fees | 26,479 | |
Accounting fees and expenses | 30,056 | |
Non-interested trustees' compensation | 33 | |
Custodian fees and expenses | 15,682 | |
Registration fees | 26,215 | |
Audit | 26,062 | |
Legal | 643 | |
Total expenses before reductions | 223,817 | |
Expense reductions | (64,493) | 159,324 |
Net investment income (loss) | | 134,440 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities | 1,440,619 | |
Foreign currency transactions | (51,408) | |
Total net realized gain (loss) | | 1,389,211 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (2,741,367) | |
Assets and liabilities in foreign currencies | (1,641) | |
Total change in net unrealized appreciation (depreciation) | | (2,743,008) |
Net gain (loss) | | (1,353,797) |
Net increase (decrease) in net assets resulting from operations | | $ (1,219,357) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended
April 30, 2003
(Unaudited) | Year ended
October 31,
2002 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 134,440 | $ (248,639) |
Net realized gain (loss) | 1,389,211 | 4,062,190 |
Change in net unrealized appreciation (depreciation) | (2,743,008) | 577,380 |
Net increase (decrease) in net assets resulting
from operations | (1,219,357) | 4,390,931 |
Share transactions - net increase (decrease) | (5,370,364) | 1,965,578 |
Total increase (decrease) in net assets | (6,589,721) | 6,356,509 |
| | |
Net Assets | | |
Beginning of period | 18,908,624 | 12,552,115 |
End of period (including undistributed net investment income of $135,470 and undistributed net investment income of $1,030, respectively) | $ 12,318,903 | $ 18,908,624 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 J | 2000 G,K | 1999K | 1998K |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.05 | $ 6.70 | $ 7.38 | $ 8.99 | $ 10.78 | $ 3.67 | $ 7.26 |
Income from Invest-
ment Operations | | | | | | | |
Net investment income (loss) E | .08 | (.11) | - L | (.01) | (.09) | (.04) | (.05) |
Net realized and unrealized gain (loss) | (.81) | 2.46 | (.69) | (1.62) | (1.97) | 7.15 | (3.54) |
Total from invest-
ment operations | (.73) | 2.35 | (.69) | (1.63) | (2.06) | 7.11 | (3.59) |
Redemption fees added to paid in capital E | - | - | .01 | .02 | .27 | - | - |
Net asset value, end of period | $ 8.32 | $ 9.05 | $ 6.70 | $ 7.38 | $ 8.99 | $ 10.78 I | $ 3.67 |
Total Return B, C, D | (8.07)% | 35.07% | (9.21)% | (17.91)% | (16.60)% | 193.73% | (49.45)% |
Ratios to Average Net Assets F | | | | | | |
Expenses before expense reductions | 2.72% A | 2.48% | 3.31% | 2.31% A | 1.97% | 1.75% | 2.32% |
Expenses net of voluntary waivers, if any | 2.00% A | 2.08% | 2.10% | 2.10% A | 1.91% | 1.75% | 2.32% |
Expenses net of all reductions | 2.00% A | 2.06% | 2.08% | 2.10% A | 1.89% | 1.61% H | 2.30% |
Net investment income (loss) | 1.87% A | (1.10)% | (.04)% | (1.71)% A | (.73)% | (.42)% | (1.22)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 9,556 | $ 11,946 | $ 11,747 | $ 19,279 | $ 25,017 | $ 60,601 | $ 22,915 |
Portfolio turnover rate | 104% A | 60% | 36% | 121% A | 39% | 58% | 65% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. GPrior to July 3, 2000, the fund operated as a closed-end investment company. Shares of the fund existing at the time of its conversion to an open-ended management company were exchanged for Class A shares. HIncludes reimbursement of $.01 per share from the custodian for an adjustment to prior period's fees. IThe fund incurred expenses of $.01 per share in connection with its repurchase offer which were offset by redemption fees collected as part of the repurchase offer. JOne month ended October 31. KFor the year ended September 30. L Amount represents less than $.01 per-share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 I | 2000 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.99 | $ 6.67 | $ 7.37 | $ 8.99 | $ 12.58 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .07 | (.14) | (.02) | (.01) | (.03) |
Net realized and unrealized gain (loss) | (.81) | 2.46 | (.69) | (1.62) H | (3.87) H |
Total from investment operations | (.74) | 2.32 | (.71) | (1.63) | (3.90) |
Redemption fees added to paid in capital E | - | - | .01 | .01 H | .31 H |
Net asset value, end of period | $ 8.25 | $ 8.99 | $ 6.67 | $ 7.37 | $ 8.99 |
Total Return B, C, D | (8.23)% | 34.78% | (9.50)% | (18.02)% | (28.54)% |
Ratios to Average Net Assets G | | | | |
Expenses before expense reductions | 3.54% A | 3.02% | 4.22% | 2.50%A | 2.55% A |
Expenses net of voluntary waivers, if any | 2.25% A | 2.33% | 2.35% | 2.35%A | 2.35% A |
Expenses net of all reductions | 2.25% A | 2.31% | 2.33% | 2.35%A | 2.32% A |
Net investment income (loss) | 1.62% A | (1.35)% | (.29)% | (1.96)%A | (1.16)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 1,066 | $ 2,718 | $ 343 | $ 473 | $ 108 |
Portfolio turnover rate | 104% A | 60% | 36% | 121%A | 39% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFor the period July 3, 2000 (commencement of sale of shares) to September 30, 2000. GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. HPer share amounts have been reclassified to permit comparison with current year presentation. IOne month ended October 31.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 I | 2000 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.88 | $ 6.62 | $ 7.36 | $ 8.98 | $ 12.58 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .05 | (.19) | (.05) | (.02) | (.04) |
Net realized and unrealized gain (loss) | (.80) | 2.45 | (.69) | (1.62) H | (3.89) H |
Total from investment operations | (.75) | 2.26 | (.74) | (1.64) | (3.93) |
Redemption fees added to paid in capital E | - | - | - | .02 H | .33 H |
Net asset value, end of period | $ 8.13 | $ 8.88 | $ 6.62 | $ 7.36 | $ 8.98 |
Total Return B, C, D | (8.45)% | 34.14% | (10.05)% | (18.04)% | (28.62)% |
Ratios to Average Net Assets G | | | | |
Expenses before expense reductions | 4.02% A | 3.48% | 4.66% | 2.96% A | 3.03%A |
Expenses net of voluntary waivers, if any | 2.75% A | 2.83% | 2.85% | 2.85% A | 2.85%A |
Expenses net of all reductions | 2.75% A | 2.81% | 2.83% | 2.85% A | 2.83%A |
Net investment income (loss) | 1.12% A | (1.85)% | (.79)% | (2.45)% A | (1.67)%A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 905 | $ 1,313 | $ 282 | $ 83 | $ 80 |
Portfolio turnover rate | 104% A | 60% | 36% | 121% A | 39% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFor the period July 3, 2000 (commencement of sale of shares) to September 30, 2000. GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. HPer share amounts have been reclassified to permit comparison with current year presentation. IOne month ended October 31.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 I | 2000 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.89 | $ 6.62 | $ 7.36 | $ 8.98 | $ 12.58 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .05 | (.19) | (.06) | (.02) | (.04) |
Net realized and unrealized gain (loss) | (.80) | 2.46 | (.69) | (1.62) H | (3.89) H |
Total from investment operations | (.75) | 2.27 | (.75) | (1.64) | (3.93) |
Redemption fees added to paid in capital E | - | - | .01 | .02 H | .33 H |
Net asset value, end of period | $ 8.14 | $ 8.89 | $ 6.62 | $ 7.36 | $ 8.98 |
Total Return B, C, D | (8.44)% | 34.29% | (10.05)% | (18.04)% | (28.62)% |
Ratios to Average Net Assets G | | | | |
Expenses before expense reductions | 3.65% A | 3.35% | 4.41% | 2.91% A | 3.01% A |
Expenses net of voluntary waivers, if any | 2.75% A | 2.83% | 2.85% | 2.85% A | 2.85% A |
Expenses net of all reductions | 2.75% A | 2.81% | 2.83% | 2.85% A | 2.82% A |
Net investment income (loss) | 1.12% A | (1.85)% | (.79)% | (2.46)% A | (1.66)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 588 | $ 804 | $ 127 | $ 82 | $ 90 |
Portfolio turnover rate | 104% A | 60% | 36% | 121% A | 39% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFor the period July 3, 2000 (commencement of sale of shares) to September 30, 2000. GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. HPer share amounts have been reclassified to permit comparison with current year presentation. IOne month ended October 31.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 H | 2000 E |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 9.11 | $ 6.72 | $ 7.39 | $ 8.99 | $ 12.58 |
Income from Investment Operations | | | | | |
Net investment income (loss) D | .10 | (.08) | .01 | (.01) | (.01) |
Net realized and unrealized gain (loss) | (.83) | 2.47 | (.69) | (1.63) G | (3.67) G |
Total from investment operations | (.73) | 2.39 | (.68) | (1.64) | (3.68) |
Redemption fees added to paid in capital D | - | - | .01 | .04 G | .09 G |
Net asset value, end of period | $ 8.38 | $ 9.11 | $ 6.72 | $ 7.39 | $ 8.99 |
Total Return B, C | (8.01)% | 35.57% | (9.07)% | (17.80)% | (28.54)% |
Ratios to Average Net AssetsF | | | | |
Expenses before expense reductions | 2.79% A | 2.22% | 3.08% | 1.77% A | 2.54% A |
Expenses net of voluntary waivers, if any | 1.75% A | 1.81% | 1.85% | 1.77% A | 1.85% A |
Expenses net of all reductions | 1.75% A | 1.80% | 1.83% | 1.77% A | 1.84% A |
Net investment income (loss) | 2.12% A | (.84)% | .21% | (1.38)% A | (.68)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 204 | $ 2,127 | $ 53 | $ 59 | $ 71 |
Portfolio turnover rate | 104% A | 60% | 36% | 121%A | 39% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DCalculated based on average shares outstanding during the period. EFor the period July 3, 2000 (commencement of sale of shares) to September 30, 2000. FExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. GPer share amounts have been reclassified to permit comparison with current year presentation. HOne month ended October 31.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2003 (Unaudited)
1. Significant Accounting Policies.
Fidelity Advisor Korea Fund (the fund) is a fund of Fidelity Advisor Series VIII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
The fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
The fund's 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 fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. Debt securities for which quotations are readily available are valued at their most recent bid prices (sales prices if the principal market is an exchange) in the principal market in which such securities are normally traded, as determined by recognized dealers in such securities, or securities are valued on the basis of information provided by a pricing service. Pricing services use valuation matrices that incorporate both dealer-supplied valuations and electronic data processing techniques. If an event that is expected to materially affect the value of a security occurs after the close of an exchange or market on which that security trades, but prior to the NAV calculation, then that security will be fair valued taking the event into account. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
1. Significant Accounting Policies - continued
Security Valuation - continued
reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. 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 fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, which includes amortization of premium and accretion of discount on debt securities, as required, 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.
Income Tax Information and Distributions to Shareholders. Each year the fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. Foreign taxes are provided for based on each fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Income dividends and capital gain distributions are declared separately for each class. Distributions are recorded on the ex-dividend date.
Semiannual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Capital accounts within the financial statements are adjusted for permanent and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due foreign currency transactions, net operating losses, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investments including unrealized appreciation (depreciation) as of period end was as follows:
Unrealized appreciation | $ 4,402,465 |
Unrealized depreciation | (858,917) |
Net unrealized appreciation (depreciation) | $ 3,543,548 |
Cost for federal income tax purposes | $ 9,173,396 |
2. Operating Policies.
Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. The custodian bank receives the collateral, which is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
3. Purchases and Sales of Investments.
Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .55% of the fund's average net assets and a group fee rate that averaged .28% during the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .83% of the fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. Class A and Class T Plans also authorize the use of brokerage commissions to pay distribution expenses. In addition, FDC may pay financial intermediaries for selling shares of the fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, the total amounts paid to and retained by FDC and the amount of distribution expenses paid with brokerage commissions were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC | Paid with
Commissions |
Class A | 0% | .25% | $ 13,358 | $ 4,328 | $ - |
Class T | .25% | .25% | 3,900 | 58 | - |
Class B | .75% | .25% | 5,628 | 4,232 | - |
Class C | .75% | .25% | 3,593 | 2,205 | - |
| | | $ 26,479 | $ 10,823 | $ - |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares of the fund. FDC receives the proceeds of contingent deferred sales charge (CDSC) levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, and .25% for certain purchases of Class A and Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 565 |
Class T | 636 |
Class B* | 6,012 |
Class C* | 2,272 |
| $ 9,485 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent (collectively referred to as the transfer agent) for each class of the fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the fund. FIIOC pays for typesetting, printing and mailing of all shareholder reports, except proxy statements. For the period, the following amounts were paid to FIIOC:
| Amount | % of
Average
Net Assets |
Class A | $ 18,020 | .34* |
Class T | 7,018 | .90* |
Class B | 4,968 | .88* |
Class C | 1,869 | .52* |
Institutional Class | 3,497 | .65* |
| $ 35,372 | |
* Annualized
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the fund's accounting records. The fee is based on the level of average net assets for the month plus out-of-pocket expenses.
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $2,011 for the period.
Brokerage Commissions. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms are shown under the caption "Other Information" at the end of the fund's Schedule of Investments.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $3.5 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 fund has agreed to pay commitment fees on its pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.
6. Expense Reductions.
FMR agreed to reimburse the classes of the fund to the extent operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, are excluded from this reimbursement.
| Expense
Limitations | Reimbursement
from adviser |
Class A | 2.00% | $ 38,593 |
Class T | 2.25% | 10,000 |
Class B | 2.75% | 7,119 |
Class C | 2.75% | 3,231 |
Institutional Class | 1.75% | 5,550 |
| | $ 64,493 |
7. Other Information.
At the end of the period, FMR or its affiliates were the owners of record of 22% of the total outstanding shares of the fund and one unaffiliated shareholder was the owner of record of 11% of the total outstanding shares of the fund.
Semiannual Report
8. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2003 | Year ended
October 31,
2002 | Six months ended
April 30,
2003 | Year ended
October 31,
2002 |
Class A | | | | |
Shares sold | 126,505 | 503,075 | $ 1,069,773 | $ 5,160,102 |
Shares redeemed | (297,912) | (937,603) | (2,506,873) | (9,464,840) |
Net increase (decrease) | (171,407) | (434,528) | $ (1,437,100) | $ (4,304,738) |
Class T | | | | |
Shares sold | 60,981 | 552,081 | $ 502,283 | $ 5,487,903 |
Shares redeemed | (234,230) | (301,065) | (2,077,874) | (3,081,636) |
Net increase (decrease) | (173,249) | 251,016 | $ (1,575,591) | $ 2,406,267 |
Class B | | | | |
Shares sold | 36,394 | 214,610 | $ 302,547 | $ 2,265,960 |
Shares redeemed | (73,057) | (109,289) | (613,845) | (1,066,238) |
Net increase (decrease) | (36,663) | 105,321 | $ (311,298) | $ 1,199,722 |
Class C | | | | |
Shares sold | 200,702 | 360,034 | $ 1,709,864 | $ 3,540,761 |
Shares redeemed | (218,920) | (288,759) | (1,887,491) | (2,784,028) |
Net increase (decrease) | (18,218) | 71,275 | $ (177,627) | $ 756,733 |
Institutional Class | | | | |
Shares sold | 364,563 | 868,246 | $ 3,387,140 | $ 8,515,527 |
Shares redeemed | (573,754) | (642,607) | (5,255,888) | (6,607,933) |
Net increase (decrease) | (209,191) | 225,639 | $ (1,868,748) | $ 1,907,594 |
Semiannual Report
Semiannual Report
Semiannual Report
Semiannual Report
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity International
Investment Advisors
Fidelity International
Investment Advisors (U.K.) Limited
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Far East) Inc.
Fidelity Investments Japan Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
Semiannual Report
Fidelity Advisor Aggressive Growth Fund |
Fidelity Advisor Asset Allocation Fund |
Fidelity Advisor Balanced Fund |
Fidelity Advisor Biotechnology Fund |
Fidelity Advisor California Municipal Income Fund |
Fidelity Advisor Consumer Industries Fund |
Fidelity Advisor Cyclical Industries Fund |
Fidelity Advisor Developing Communications Fund |
Fidelity Advisor Diversified International Fund |
Fidelity Advisor Dividend Growth Fund |
Fidelity Advisor Dynamic Capital Appreciation Fund |
Fidelity Advisor Electronics Fund |
Fidelity Advisor Emerging Asia Fund |
Fidelity Advisor Emerging Markets Income Fund |
Fidelity Advisor Equity Growth Fund |
Fidelity Advisor Equity Income Fund |
Fidelity Advisor Equity Value Fund |
Fidelity Advisor Europe Capital Appreciation Fund |
Fidelity Advisor Fifty Fund |
Fidelity Advisor Financial Services Fund |
Fidelity Advisor Floating Rate High Income Fund |
Fidelity Advisor Global Equity Fund |
Fidelity Advisor Government Investment Fund |
Fidelity Advisor Growth & Income Fund |
Fidelity Advisor Growth Opportunities |
Fidelity Advisor Health Care Fund |
Fidelity Advisor High Income Advantage Fund |
Fidelity Advisor High Income Fund |
Fidelity Advisor Inflation-Protected Bond Fund |
Fidelity Advisor Intermediate Bond Fund |
Fidelity Advisor International Capital Appreciation Fund |
Fidelity Advisor Investment Grade Bond Fund |
Fidelity Advisor Japan Fund |
Fidelity Advisor Korea Fund |
Fidelity Advisor Large Cap Fund |
Fidelity Advisor Latin America Fund |
Fidelity Advisor Leveraged Company Stock Fund |
Fidelity Advisor Mid Cap Fund |
Fidelity Advisor Mortgage Securities Fund |
Fidelity Advisor Municipal Income Fund |
Fidelity Advisor Natural Resources Fund |
Fidelity Advisor New York Municipal Income Fund |
Fidelity Advisor Overseas Fund |
Fidelity Advisor Real Estate Fund |
Fidelity Advisor Short Fixed-Income Fund |
Fidelity Advisor Small Cap Fund |
Fidelity Advisor Strategic Growth Fund |
Fidelity Advisor Strategic Income Fund |
Fidelity Advisor Tax Managed
Stock Fund |
Fidelity Advisor Technology Fund |
Fidelity Advisor Telecommunications & Utilities Growth Fund |
Fidelity Advisor Value Strategies Fund |
Prime Fund |
Tax-Exempt Fund |
Treasury Fund |
(Fidelity Investment logo)(registered trademark)
AKOR-USAN-0603
1.784894.100
(Fidelity Investment logo)(registered trademark)
Fidelity® Advisor
Korea
Fund - Institutional Class
Semiannual Report
April 30, 2003
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Investment Changes | <Click Here> | A summary of major shifts in the
fund's investments. |
Investments | <Click Here> | A complete list of the fund's investments with their market values. |
Financial Statements | <Click Here> | Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights. |
Notes | <Click Here> | Notes to the financial statements. |
| | |
| | |
| | |
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.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.
Neither the fund nor Fidelity Distributors Corporation is a bank.
For more information on any Fidelity fund, including charges and expenses, call 1-800-544-6666 for a free prospectus. Read it carefully before you invest or send money.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
This shareholder update and report on the performance of your fund is among the first to be produced under the new Sarbanes-Oxley Public Company Accounting and Investor Protection Act of 2002. This act requires that public companies certify, under penalty of law, the financial information they report to shareholders. It was adopted by Congress in reaction to several incidents of corporate malfeasance that brought the integrity of management of some publicly traded companies into question.
After the act was signed into law, the Securities and Exchange Commission interpreted it as applying to mutual funds as well as public companies. Thus, every mutual fund now is required to certify that the financial information provided in annual and semiannual reports to shareholders fully and fairly presents its financial position.
There is little doubt that the intent of Congress and regulators in this matter is a noble one - to improve the accuracy and accountability of financial reporting to investors by corporate America. We in no way condone any of the activities that brought about these requirements, and we welcome any and every reasonable proposal to strengthen investor protection and information disclosure.
That said, we are proud that mutual funds have always provided full and fair disclosure. Governed by the Investment Company Act of 1940 - and monitored and regulated by federal and state agencies, industry oversight associations, and independent directors - mutual funds are among the most transparent of all financial products. For example, the prices of mutual fund shares are established and published every business day, and the majority of members of the Board of Trustees that oversees our funds are not affiliated with the business of Fidelity. The disclosure standards of mutual funds actually have become models for governance and transparency across corporate America.
We are, of course, complying in full with the letter of this new requirement and hope that any future efforts by Congress to reassure investors about the honesty of corporate America will focus on practical and substantive solutions of genuine value to shareholders.
This sort of careful consideration was evident as Congress deliberated President Bush's tax cut package this spring, then enacted legislation that contains a variety of benefits for American families, investors and businesses. Although the final bill did not completely eliminate the tax that individual investors pay when they receive dividends from companies, it still will benefit American investors, and we applaud it in the spirit of compromise that marked the debate in Congress.
At Fidelity, we are committed to acting at all times in accordance with the highest standards of integrity and in the best interests of our fund shareholders. We are proud of the amount of information we provide to those who invest in our funds and pleased to continue that level of communication with you in these reports.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Investment Changes
Top Ten Stocks as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Samsung Electronics Co. Ltd. | 21.4 | 23.5 |
Kookmin Bank | 8.2 | 7.0 |
KT Corp. | 6.3 | 7.6 |
Shinsegae Co. Ltd. | 4.8 | 0.0 |
Shinhan Financial Group Co. Ltd. | 4.5 | 4.4 |
SK Telecom Co. Ltd. | 4.3 | 5.9 |
Hyundai Motor Co. Ltd. | 4.2 | 3.5 |
Samsung Fire & Marine Insurance Co. Ltd. | 4.0 | 2.5 |
POSCO | 3.5 | 3.0 |
Korea Electric Power Corp. | 3.4 | 4.0 |
| 64.6 | |
Market Sectors as of April 30, 2003 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Information Technology | 30.4 | 29.2 |
Financials | 22.3 | 27.9 |
Consumer Discretionary | 17.6 | 9.4 |
Telecommunication Services | 10.6 | 14.0 |
Consumer Staples | 5.5 | 3.0 |
Materials | 5.1 | 3.8 |
Utilities | 3.4 | 4.0 |
Industrials | 1.5 | 3.6 |
Energy | 1.3 | 0.8 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2003 | As of October 31, 2002 |
| Stocks 97.7% | | | Stocks 95.7% | |
| Short-Term
Investments and
Net Other Assets 2.3% | | | Short-Term
Investments and
Net Other Assets 4.3% | |
| | | | | |
Semiannual Report
Investments April 30, 2003 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.7% |
| Shares | | Value (Note 1) |
CONSUMER DISCRETIONARY - 17.6% |
Automobiles - 6.8% |
Hyundai Motor Co. Ltd. | 22,000 | | $ 519,885 |
Kia Motors Corp. | 45,000 | | 313,092 |
| | 832,977 |
Hotels, Restaurants & Leisure - 1.0% |
Paradise Co. Ltd. | 38,000 | | 126,719 |
Household Durables - 3.4% |
LG Electronics, Inc. | 12,000 | | 413,997 |
Internet & Catalog Retail - 1.6% |
LG Home Shopping, Inc. | 3,400 | | 193,446 |
Multiline Retail - 4.8% |
Shinsegae Co. Ltd. | 5,000 | | 596,953 |
TOTAL CONSUMER DISCRETIONARY | | 2,164,092 |
CONSUMER STAPLES - 5.5% |
Beverages - 2.8% |
Lotte Chilsung Beverage Co. Ltd. | 700 | | 346,974 |
Food Products - 2.7% |
Lotte Confectionery Co. Ltd. | 468 | | 169,937 |
Nong Shim Co. Ltd. | 2,200 | | 163,936 |
| | 333,873 |
TOTAL CONSUMER STAPLES | | 680,847 |
ENERGY - 1.3% |
Oil & Gas - 1.3% |
S-Oil Corp. | 10,000 | | 163,030 |
FINANCIALS - 22.3% |
Banks - 15.9% |
Chohung Bank Co. Ltd. (a) | 100,000 | | 327,707 |
Hana Bank | 7,000 | | 60,231 |
Kookmin Bank | 36,000 | | 1,010,786 |
Shinhan Financial Group Co. Ltd. | 56,000 | | 553,314 |
| | 1,952,038 |
Diversified Financials - 2.4% |
KTBnetwork Co. Ltd. | 70,000 | | 112,968 |
Samsung Securities Co. Ltd. (a) | 9,000 | | 185,261 |
| | 298,229 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
FINANCIALS - continued |
Insurance - 4.0% |
Samsung Fire & Marine Insurance Co. Ltd. | 10,000 | | $ 494,030 |
TOTAL FINANCIALS | | 2,744,297 |
INDUSTRIALS - 1.5% |
Building Products - 0.8% |
Keumkang Ltd. | 1,200 | | 102,264 |
Construction & Engineering - 0.7% |
Daelim Industrial Co. | 5,000 | | 81,515 |
TOTAL INDUSTRIALS | | 183,779 |
INFORMATION TECHNOLOGY - 30.4% |
Computers & Peripherals - 2.3% |
You Eal Electronics Co. Ltd. | 14,800 | | 282,717 |
Electronic Equipment & Instruments - 4.7% |
KH Vatec Co. Ltd. | 4,800 | | 249,782 |
Samsung Electro-Mechanics Co. Ltd. | 5,000 | | 147,592 |
Samsung SDI Co. Ltd. | 3,000 | | 187,732 |
| | 585,106 |
Internet Software & Services - 2.0% |
NCsoft Corp. (a) | 2,800 | | 244,380 |
Semiconductor Equipment & Products - 21.4% |
Samsung Electronics Co. Ltd. | 10,500 | | 2,636,887 |
TOTAL INFORMATION TECHNOLOGY | | 3,749,090 |
MATERIALS - 5.1% |
Chemicals - 1.6% |
LG Chemical Ltd. | 6,000 | | 199,094 |
Metals & Mining - 3.5% |
POSCO | 5,160 | | 435,488 |
TOTAL MATERIALS | | 634,582 |
TELECOMMUNICATION SERVICES - 10.6% |
Diversified Telecommunication Services - 6.3% |
KT Corp. | 18,800 | | 772,433 |
Common Stocks - continued |
| Shares | | Value (Note 1) |
TELECOMMUNICATION SERVICES - continued |
Wireless Telecommunication Services - 4.3% |
SK Telecom Co. Ltd. | 3,800 | | $ 528,777 |
TOTAL TELECOMMUNICATION SERVICES | | 1,301,210 |
UTILITIES - 3.4% |
Electric Utilities - 3.4% |
Korea Electric Power Corp. | 25,000 | | 420,955 |
TOTAL COMMON STOCKS (Cost $8,491,336) | 12,041,882 |
Nonconvertible Bonds - 0.0% |
| Principal Amount | | |
FINANCIALS - 0.0% |
Banks - 0.0% |
Shinhan Bank 0% 12/2/48 | KRW | 64,930,000 | | 102 |
TOTAL NONCONVERTIBLE BONDS (Cost $4,830) | 102 |
Money Market Funds - 5.5% |
| Shares | | |
Fidelity Cash Central Fund, 1.29% (b)
(Cost $674,960) | 674,960 | | 674,960 |
TOTAL INVESTMENT PORTFOLIO - 103.2% (Cost $9,171,126) | | 12,716,944 |
NET OTHER ASSETS - (3.2)% | | (398,041) |
NET ASSETS - 100% | $ 12,318,903 |
Currency Abbreviations |
KRW | - | Korean won |
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 $7,671,817 and $12,431,776, respectively. |
The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $47 for the period. |
Income Tax Information |
At October 31, 2002, the fund had a capital loss carryforward of approximately $17,309,000 of which $3,680,000, $12,115,000 and $1,514,000 will expire on October 31, 2005, 2006 and 2009, respectively. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
| April 30, 2003 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $9,171,126) - See accompanying schedule | | $ 12,716,944 |
Receivable for fund shares sold | | 53,064 |
Dividends receivable | | 8,580 |
Interest receivable | | 395 |
Receivable from investment adviser for expense reductions | | 15,718 |
Total assets | | 12,794,701 |
| | |
Liabilities | | |
Payable for investments purchased | $ 369,692 | |
Payable for fund shares redeemed | 47,451 | |
Accrued management fee | 8,225 | |
Distribution fees payable | 3,528 | |
Other payables and accrued expenses | 46,902 | |
Total liabilities | | 475,798 |
| | |
Net Assets | | $ 12,318,903 |
Net Assets consist of: | | |
Paid in capital | | $ 24,597,915 |
Undistributed net investment income | | 135,470 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (15,959,598) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 3,545,116 |
Net Assets | | $ 12,318,903 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| April 30, 2003 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share
($9,555,975 ÷ 1,148,051 shares) | | $ 8.32 |
| | |
Maximum offering price per share (100/94.25 of $8.32) | | $ 8.83 |
Class T:
Net Asset Value and redemption price per share ($1,066,073 ÷ 129,187 shares) | | $ 8.25 |
| | |
Maximum offering price per share (100/96.50 of $8.25) | | $ 8.55 |
Class B:
Net Asset Value and offering price per share ($904,653 ÷ 111,210 shares) A | | $ 8.13 |
| | |
Class C:
Net Asset Value and offering price per share ($587,846 ÷ 72,216 shares) A | | $ 8.14 |
| | |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($204,356 ÷ 24,398 shares) | | $ 8.38 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
| Six months ended April 30, 2003 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 348,813 |
Interest | | 2,710 |
| | 351,523 |
Less foreign taxes withheld | | (57,759) |
Total income | | 293,764 |
| | |
Expenses | | |
Management fee | $ 63,275 | |
Transfer agent fees | 35,372 | |
Distribution fees | 26,479 | |
Accounting fees and expenses | 30,056 | |
Non-interested trustees' compensation | 33 | |
Custodian fees and expenses | 15,682 | |
Registration fees | 26,215 | |
Audit | 26,062 | |
Legal | 643 | |
Total expenses before reductions | 223,817 | |
Expense reductions | (64,493) | 159,324 |
Net investment income (loss) | | 134,440 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities | 1,440,619 | |
Foreign currency transactions | (51,408) | |
Total net realized gain (loss) | | 1,389,211 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (2,741,367) | |
Assets and liabilities in foreign currencies | (1,641) | |
Total change in net unrealized appreciation (depreciation) | | (2,743,008) |
Net gain (loss) | | (1,353,797) |
Net increase (decrease) in net assets resulting from operations | | $ (1,219,357) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended
April 30, 2003
(Unaudited) | Year ended
October 31,
2002 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 134,440 | $ (248,639) |
Net realized gain (loss) | 1,389,211 | 4,062,190 |
Change in net unrealized appreciation (depreciation) | (2,743,008) | 577,380 |
Net increase (decrease) in net assets resulting
from operations | (1,219,357) | 4,390,931 |
Share transactions - net increase (decrease) | (5,370,364) | 1,965,578 |
Total increase (decrease) in net assets | (6,589,721) | 6,356,509 |
| | |
Net Assets | | |
Beginning of period | 18,908,624 | 12,552,115 |
End of period (including undistributed net investment income of $135,470 and undistributed net investment income of $1,030, respectively) | $ 12,318,903 | $ 18,908,624 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 J | 2000 G,K | 1999K | 1998K |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.05 | $ 6.70 | $ 7.38 | $ 8.99 | $ 10.78 | $ 3.67 | $ 7.26 |
Income from Invest-
ment Operations | | | | | | | |
Net investment income (loss) E | .08 | (.11) | - L | (.01) | (.09) | (.04) | (.05) |
Net realized and unrealized gain (loss) | (.81) | 2.46 | (.69) | (1.62) | (1.97) | 7.15 | (3.54) |
Total from invest-
ment operations | (.73) | 2.35 | (.69) | (1.63) | (2.06) | 7.11 | (3.59) |
Redemption fees added to paid in capital E | - | - | .01 | .02 | .27 | - | - |
Net asset value, end of period | $ 8.32 | $ 9.05 | $ 6.70 | $ 7.38 | $ 8.99 | $ 10.78 I | $ 3.67 |
Total Return B, C, D | (8.07)% | 35.07% | (9.21)% | (17.91)% | (16.60)% | 193.73% | (49.45)% |
Ratios to Average Net Assets F | | | | | | |
Expenses before expense reductions | 2.72% A | 2.48% | 3.31% | 2.31% A | 1.97% | 1.75% | 2.32% |
Expenses net of voluntary waivers, if any | 2.00% A | 2.08% | 2.10% | 2.10% A | 1.91% | 1.75% | 2.32% |
Expenses net of all reductions | 2.00% A | 2.06% | 2.08% | 2.10% A | 1.89% | 1.61% H | 2.30% |
Net investment income (loss) | 1.87% A | (1.10)% | (.04)% | (1.71)% A | (.73)% | (.42)% | (1.22)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 9,556 | $ 11,946 | $ 11,747 | $ 19,279 | $ 25,017 | $ 60,601 | $ 22,915 |
Portfolio turnover rate | 104% A | 60% | 36% | 121% A | 39% | 58% | 65% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. GPrior to July 3, 2000, the fund operated as a closed-end investment company. Shares of the fund existing at the time of its conversion to an open-ended management company were exchanged for Class A shares. HIncludes reimbursement of $.01 per share from the custodian for an adjustment to prior period's fees. IThe fund incurred expenses of $.01 per share in connection with its repurchase offer which were offset by redemption fees collected as part of the repurchase offer. JOne month ended October 31. KFor the year ended September 30. L Amount represents less than $.01 per-share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 I | 2000 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.99 | $ 6.67 | $ 7.37 | $ 8.99 | $ 12.58 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .07 | (.14) | (.02) | (.01) | (.03) |
Net realized and unrealized gain (loss) | (.81) | 2.46 | (.69) | (1.62) H | (3.87) H |
Total from investment operations | (.74) | 2.32 | (.71) | (1.63) | (3.90) |
Redemption fees added to paid in capital E | - | - | .01 | .01 H | .31 H |
Net asset value, end of period | $ 8.25 | $ 8.99 | $ 6.67 | $ 7.37 | $ 8.99 |
Total Return B, C, D | (8.23)% | 34.78% | (9.50)% | (18.02)% | (28.54)% |
Ratios to Average Net Assets G | | | | |
Expenses before expense reductions | 3.54% A | 3.02% | 4.22% | 2.50%A | 2.55% A |
Expenses net of voluntary waivers, if any | 2.25% A | 2.33% | 2.35% | 2.35%A | 2.35% A |
Expenses net of all reductions | 2.25% A | 2.31% | 2.33% | 2.35%A | 2.32% A |
Net investment income (loss) | 1.62% A | (1.35)% | (.29)% | (1.96)%A | (1.16)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 1,066 | $ 2,718 | $ 343 | $ 473 | $ 108 |
Portfolio turnover rate | 104% A | 60% | 36% | 121%A | 39% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the sales charges. ECalculated based on average shares outstanding during the period. FFor the period July 3, 2000 (commencement of sale of shares) to September 30, 2000. GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. HPer share amounts have been reclassified to permit comparison with current year presentation. IOne month ended October 31.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 I | 2000 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.88 | $ 6.62 | $ 7.36 | $ 8.98 | $ 12.58 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .05 | (.19) | (.05) | (.02) | (.04) |
Net realized and unrealized gain (loss) | (.80) | 2.45 | (.69) | (1.62) H | (3.89) H |
Total from investment operations | (.75) | 2.26 | (.74) | (1.64) | (3.93) |
Redemption fees added to paid in capital E | - | - | - | .02 H | .33 H |
Net asset value, end of period | $ 8.13 | $ 8.88 | $ 6.62 | $ 7.36 | $ 8.98 |
Total Return B, C, D | (8.45)% | 34.14% | (10.05)% | (18.04)% | (28.62)% |
Ratios to Average Net Assets G | | | | |
Expenses before expense reductions | 4.02% A | 3.48% | 4.66% | 2.96% A | 3.03%A |
Expenses net of voluntary waivers, if any | 2.75% A | 2.83% | 2.85% | 2.85% A | 2.85%A |
Expenses net of all reductions | 2.75% A | 2.81% | 2.83% | 2.85% A | 2.83%A |
Net investment income (loss) | 1.12% A | (1.85)% | (.79)% | (2.45)% A | (1.67)%A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 905 | $ 1,313 | $ 282 | $ 83 | $ 80 |
Portfolio turnover rate | 104% A | 60% | 36% | 121% A | 39% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFor the period July 3, 2000 (commencement of sale of shares) to September 30, 2000. GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. HPer share amounts have been reclassified to permit comparison with current year presentation. IOne month ended October 31.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 I | 2000 F |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.89 | $ 6.62 | $ 7.36 | $ 8.98 | $ 12.58 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .05 | (.19) | (.06) | (.02) | (.04) |
Net realized and unrealized gain (loss) | (.80) | 2.46 | (.69) | (1.62) H | (3.89) H |
Total from investment operations | (.75) | 2.27 | (.75) | (1.64) | (3.93) |
Redemption fees added to paid in capital E | - | - | .01 | .02 H | .33 H |
Net asset value, end of period | $ 8.14 | $ 8.89 | $ 6.62 | $ 7.36 | $ 8.98 |
Total Return B, C, D | (8.44)% | 34.29% | (10.05)% | (18.04)% | (28.62)% |
Ratios to Average Net Assets G | | | | |
Expenses before expense reductions | 3.65% A | 3.35% | 4.41% | 2.91% A | 3.01% A |
Expenses net of voluntary waivers, if any | 2.75% A | 2.83% | 2.85% | 2.85% A | 2.85% A |
Expenses net of all reductions | 2.75% A | 2.81% | 2.83% | 2.85% A | 2.82% A |
Net investment income (loss) | 1.12% A | (1.85)% | (.79)% | (2.46)% A | (1.66)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 588 | $ 804 | $ 127 | $ 82 | $ 90 |
Portfolio turnover rate | 104% A | 60% | 36% | 121% A | 39% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DTotal returns do not include the effect of the contingent deferred sales charge. ECalculated based on average shares outstanding during the period. FFor the period July 3, 2000 (commencement of sale of shares) to September 30, 2000. GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. HPer share amounts have been reclassified to permit comparison with current year presentation. IOne month ended October 31.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended
April 30, 2003 | Years ended October 31, |
| (Unaudited) | 2002 | 2001 | 2000 H | 2000 E |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 9.11 | $ 6.72 | $ 7.39 | $ 8.99 | $ 12.58 |
Income from Investment Operations | | | | | |
Net investment income (loss) D | .10 | (.08) | .01 | (.01) | (.01) |
Net realized and unrealized gain (loss) | (.83) | 2.47 | (.69) | (1.63) G | (3.67) G |
Total from investment operations | (.73) | 2.39 | (.68) | (1.64) | (3.68) |
Redemption fees added to paid in capital D | - | - | .01 | .04 G | .09 G |
Net asset value, end of period | $ 8.38 | $ 9.11 | $ 6.72 | $ 7.39 | $ 8.99 |
Total Return B, C | (8.01)% | 35.57% | (9.07)% | (17.80)% | (28.54)% |
Ratios to Average Net AssetsF | | | | |
Expenses before expense reductions | 2.79% A | 2.22% | 3.08% | 1.77% A | 2.54% A |
Expenses net of voluntary waivers, if any | 1.75% A | 1.81% | 1.85% | 1.77% A | 1.85% A |
Expenses net of all reductions | 1.75% A | 1.80% | 1.83% | 1.77% A | 1.84% A |
Net investment income (loss) | 2.12% A | (.84)% | .21% | (1.38)% A | (.68)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 204 | $ 2,127 | $ 53 | $ 59 | $ 71 |
Portfolio turnover rate | 104% A | 60% | 36% | 121%A | 39% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DCalculated based on average shares outstanding during the period. EFor the period July 3, 2000 (commencement of sale of shares) to September 30, 2000. FExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from directed brokerage or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from directed brokerage or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. GPer share amounts have been reclassified to permit comparison with current year presentation. HOne month ended October 31.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2003 (Unaudited)
1. Significant Accounting Policies.
Fidelity Advisor Korea Fund (the fund) is a fund of Fidelity Advisor Series VIII (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
The fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
The fund's 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 fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. Debt securities for which quotations are readily available are valued at their most recent bid prices (sales prices if the principal market is an exchange) in the principal market in which such securities are normally traded, as determined by recognized dealers in such securities, or securities are valued on the basis of information provided by a pricing service. Pricing services use valuation matrices that incorporate both dealer-supplied valuations and electronic data processing techniques. If an event that is expected to materially affect the value of a security occurs after the close of an exchange or market on which that security trades, but prior to the NAV calculation, then that security will be fair valued taking the event into account. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
1. Significant Accounting Policies - continued
Security Valuation - continued
reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. 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 fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, which includes amortization of premium and accretion of discount on debt securities, as required, 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.
Income Tax Information and Distributions to Shareholders. Each year the fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required. Foreign taxes are provided for based on each fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Income dividends and capital gain distributions are declared separately for each class. Distributions are recorded on the ex-dividend date.
Semiannual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Capital accounts within the financial statements are adjusted for permanent and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due foreign currency transactions, net operating losses, capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investments including unrealized appreciation (depreciation) as of period end was as follows:
Unrealized appreciation | $ 4,402,465 |
Unrealized depreciation | (858,917) |
Net unrealized appreciation (depreciation) | $ 3,543,548 |
Cost for federal income tax purposes | $ 9,173,396 |
2. Operating Policies.
Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. The custodian bank receives the collateral, which is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
3. Purchases and Sales of Investments.
Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .55% of the fund's average net assets and a group fee rate that averaged .28% during the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .83% of the fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. Class A and Class T Plans also authorize the use of brokerage commissions to pay distribution expenses. In addition, FDC may pay financial intermediaries for selling shares of the fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, the total amounts paid to and retained by FDC and the amount of distribution expenses paid with brokerage commissions were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC | Paid with
Commissions |
Class A | 0% | .25% | $ 13,358 | $ 4,328 | $ - |
Class T | .25% | .25% | 3,900 | 58 | - |
Class B | .75% | .25% | 5,628 | 4,232 | - |
Class C | .75% | .25% | 3,593 | 2,205 | - |
| | | $ 26,479 | $ 10,823 | $ - |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares of the fund. FDC receives the proceeds of contingent deferred sales charge (CDSC) levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, and .25% for certain purchases of Class A and Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 565 |
Class T | 636 |
Class B* | 6,012 |
Class C* | 2,272 |
| $ 9,485 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent (collectively referred to as the transfer agent) for each class of the fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the fund. FIIOC pays for typesetting, printing and mailing of all shareholder reports, except proxy statements. For the period, the following amounts were paid to FIIOC:
| Amount | % of
Average
Net Assets |
Class A | $ 18,020 | .34* |
Class T | 7,018 | .90* |
Class B | 4,968 | .88* |
Class C | 1,869 | .52* |
Institutional Class | 3,497 | .65* |
| $ 35,372 | |
* Annualized
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the fund's accounting records. The fee is based on the level of average net assets for the month plus out-of-pocket expenses.
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $2,011 for the period.
Brokerage Commissions. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms are shown under the caption "Other Information" at the end of the fund's Schedule of Investments.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $3.5 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 fund has agreed to pay commitment fees on its pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.
6. Expense Reductions.
FMR agreed to reimburse the classes of the fund to the extent operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, are excluded from this reimbursement.
| Expense
Limitations | Reimbursement
from adviser |
Class A | 2.00% | $ 38,593 |
Class T | 2.25% | 10,000 |
Class B | 2.75% | 7,119 |
Class C | 2.75% | 3,231 |
Institutional Class | 1.75% | 5,550 |
| | $ 64,493 |
7. Other Information.
At the end of the period, FMR or its affiliates were the owners of record of 22% of the total outstanding shares of the fund and one unaffiliated shareholder was the owner of record of 11% of the total outstanding shares of the fund.
Semiannual Report
8. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2003 | Year ended
October 31,
2002 | Six months ended
April 30,
2003 | Year ended
October 31,
2002 |
Class A | | | | |
Shares sold | 126,505 | 503,075 | $ 1,069,773 | $ 5,160,102 |
Shares redeemed | (297,912) | (937,603) | (2,506,873) | (9,464,840) |
Net increase (decrease) | (171,407) | (434,528) | $ (1,437,100) | $ (4,304,738) |
Class T | | | | |
Shares sold | 60,981 | 552,081 | $ 502,283 | $ 5,487,903 |
Shares redeemed | (234,230) | (301,065) | (2,077,874) | (3,081,636) |
Net increase (decrease) | (173,249) | 251,016 | $ (1,575,591) | $ 2,406,267 |
Class B | | | | |
Shares sold | 36,394 | 214,610 | $ 302,547 | $ 2,265,960 |
Shares redeemed | (73,057) | (109,289) | (613,845) | (1,066,238) |
Net increase (decrease) | (36,663) | 105,321 | $ (311,298) | $ 1,199,722 |
Class C | | | | |
Shares sold | 200,702 | 360,034 | $ 1,709,864 | $ 3,540,761 |
Shares redeemed | (218,920) | (288,759) | (1,887,491) | (2,784,028) |
Net increase (decrease) | (18,218) | 71,275 | $ (177,627) | $ 756,733 |
Institutional Class | | | | |
Shares sold | 364,563 | 868,246 | $ 3,387,140 | $ 8,515,527 |
Shares redeemed | (573,754) | (642,607) | (5,255,888) | (6,607,933) |
Net increase (decrease) | (209,191) | 225,639 | $ (1,868,748) | $ 1,907,594 |
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Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity International
Investment Advisors
Fidelity International
Investment Advisors (U.K.) Limited
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Far East) Inc.
Fidelity Investments Japan Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
Semiannual Report
Fidelity Advisor Aggressive Growth Fund |
Fidelity Advisor Asset Allocation Fund |
Fidelity Advisor Balanced Fund |
Fidelity Advisor Biotechnology Fund |
Fidelity Advisor California Municipal Income Fund |
Fidelity Advisor Consumer Industries Fund |
Fidelity Advisor Cyclical Industries Fund |
Fidelity Advisor Developing Communications Fund |
Fidelity Advisor Diversified International Fund |
Fidelity Advisor Dividend Growth Fund |
Fidelity Advisor Dynamic Capital Appreciation Fund |
Fidelity Advisor Electronics Fund |
Fidelity Advisor Emerging Asia Fund |
Fidelity Advisor Emerging Markets Income Fund |
Fidelity Advisor Equity Growth Fund |
Fidelity Advisor Equity Income Fund |
Fidelity Advisor Equity Value Fund |
Fidelity Advisor Europe Capital Appreciation Fund |
Fidelity Advisor Fifty Fund |
Fidelity Advisor Financial Services Fund |
Fidelity Advisor Floating Rate High Income Fund |
Fidelity Advisor Global Equity Fund |
Fidelity Advisor Government Investment Fund |
Fidelity Advisor Growth & Income Fund |
Fidelity Advisor Growth Opportunities |
Fidelity Advisor Health Care Fund |
Fidelity Advisor High Income Advantage Fund |
Fidelity Advisor High Income Fund |
Fidelity Advisor Inflation-Protected Bond Fund |
Fidelity Advisor Intermediate Bond Fund |
Fidelity Advisor International Capital Appreciation Fund |
Fidelity Advisor Investment Grade Bond Fund |
Fidelity Advisor Japan Fund |
Fidelity Advisor Korea Fund |
Fidelity Advisor Large Cap Fund |
Fidelity Advisor Latin America Fund |
Fidelity Advisor Leveraged Company Stock Fund |
Fidelity Advisor Mid Cap Fund |
Fidelity Advisor Mortgage Securities Fund |
Fidelity Advisor Municipal Income Fund |
Fidelity Advisor Natural Resources Fund |
Fidelity Advisor New York Municipal Income Fund |
Fidelity Advisor Overseas Fund |
Fidelity Advisor Real Estate Fund |
Fidelity Advisor Short Fixed-Income Fund |
Fidelity Advisor Small Cap Fund |
Fidelity Advisor Strategic Growth Fund |
Fidelity Advisor Strategic Income Fund |
Fidelity Advisor Tax Managed
Stock Fund |
Fidelity Advisor Technology Fund |
Fidelity Advisor Telecommunications & Utilities Growth Fund |
Fidelity Advisor Value Strategies Fund |
Prime Fund |
Tax-Exempt Fund |
Treasury Fund |
(Fidelity Investment logo)(registered trademark)
AKORI-USAN-0603
1.784895.100
Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert
Not applicable.
Item 4. Principal Accountant Fees and Services
Not applicable.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Reserved
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Reserved
Item 9. Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Advisor Series VIII disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act) provide reasonable assurances that material information relating to the Fidelity Advisor Series VIII is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There were no significant changes in Fidelity Advisor Series VIII internal controls or in other factors that could significantly affect these controls subsequent to the date of the evaluation referenced in (a)(i) above.
Item 10. Exhibits
(a) | | Not applicable. |
(b) | (1) | Certification pursuant to Rule 30a-2 under the Investment Company Act of 1940 (17 CFR 270.30a-2) attached hereto as Exhibit 99.CERT. |
| (2) | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Advisor Series VIII
By: | /s/Maria Dwyer |
| Maria Dwyer |
| President and Treasurer |
| |
Date: | June 23, 2003 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/Maria Dwyer |
| Maria Dwyer |
| President and Treasurer |
| |
Date: | June 23, 2003 |
By: | /s/Timothy F. Hayes |
| Timothy F. Hayes |
| Chief Financial Officer |
| |
Date: | June 23, 2003 |
